ROSEMONT, Ill., Oct. 16, 2019 (GLOBE NEWSWIRE) -- Wintrust
Financial Corporation (“Wintrust” or “the Company”) (Nasdaq: WTFC)
announced net income of $99.1 million or $1.69 per diluted common
share for the third quarter of 2019, an increase in diluted
earnings per common share of 22.5% compared to the prior quarter
and 7.6% compared to the third quarter of 2018. The Company
recorded net income of $269.7 million or $4.60 per diluted common
share for the first nine months of 2019 compared to net income of
$263.5 million or $4.50 per diluted common share for the same
period of 2018.
Highlights of the Third Quarter of
2019:
Comparative information to the second quarter of
2019
- Total assets increased by $1.3 billion or 15% on an annualized
basis.
- Total loans increased by $406 million or 6% on an annualized
basis.
- Total deposits increased by $1.2 billion or 17% on an
annualized basis, the increase was net of a $552 million reduction
in brokered deposits.
- Mortgage banking production revenue increased by $12.8 million
as mortgage loans originated for sale totaled $1.4 billion in the
third quarter of 2019 as compared to $1.2 billion in the second
quarter of 2019.
- Net interest income decreased by $1.3 million as a 25 basis
point decline in net interest margin was partially offset by a $1.7
billion increase in average earning assets.
- The net overhead ratio declined by 24 basis points to 1.40%,
effectively offsetting the impact of the net interest margin
decline.
- Recorded net charge-offs of $9.4 million in the third quarter
of 2019 as compared to $22.3 million in the second quarter of 2019.
The $9.4 million includes $4.0 million of additional net
charge-offs related to the three non-performing credits disclosed
in the second quarter of 2019.
- The ratio of non-performing assets to total assets declined by
two basis points to 0.38%.
Other highlights of the third quarter of
2019
- Total period end loans were $364 million higher than average
total loans in the current quarter.
- Loans to deposits ratio ended the period at 89.6%.
- Recorded a $3.9 million reduction to FDIC insurance expense
related to assessment credits received from the FDIC.
- Recorded a reduction in value of mortgage servicing rights
related to changes in fair value model assumptions, net of
derivative contract activity held as an economic hedge, of $4.0
million.
- Recorded acquisition related costs of $1.3 million in the third
quarter of 2019 as compared to $238,000 in the second quarter of
2019.
Expansion activity
- Opened two new branches in the city
of Chicago.
- Completed the previously announced
acquisition of STC Bancshares Corp., the parent company of STC
Capital Bank, early in the fourth quarter of 2019. STC Capital Bank
had approximately $190 million in loans and approximately $244
million in deposits as of June 30, 2019.
- Announced an agreement to acquire
SBC, Incorporated, the parent company of Countryside Bank, which is
expected to close in the fourth quarter of 2019. Countryside Bank
had approximately $420 million in loans and approximately $511
million in deposits as of June 30, 2019.
Edward J. Wehmer, President and Chief Executive
Officer, commented, "Wintrust reported record net income of $99.1
million for the third quarter of 2019, up from $81.5 million in the
second quarter of 2019. The Company experienced strong balance
sheet growth as total assets were $1.3 billion higher than the
prior quarter end and $4.8 billion higher than at the third quarter
of 2018. The third quarter was characterized by strong balance
sheet growth, decreased net interest margin, increased mortgage
banking revenue, improved credit quality, and a continued focus to
increase franchise value in our market area."
Mr. Wehmer continued, "The Company experienced
significant growth in retail deposits demonstrating the value of
our local brand and branch network. We are pleased to now have the
largest deposit base in the Chicago market area among locally
headquartered banks. Total deposits increased by $1.2 billion in
the third quarter of 2019 which was net of a reduction of $552
million in brokered deposits to optimize our funding base.
Non-brokered deposits now comprise approximately 96% of total
deposits. Additionally, the Company grew total loans by $406
million with growth diversified across various loan portfolios
including the commercial real estate, commercial premium finance
receivables, life insurance premium finance receivables and
residential real estate portfolios. 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 commented, "Net interest margin
declined by 25 basis points in the third quarter of 2019 as
compared to the second quarter of 2019 primarily due to downward
repricing of variable rate loans and increased levels of interest
bearing cash. However, net interest income only decreased slightly
as compared to the prior quarter due to growth in earning assets.
We expect to begin to realize the benefit of declining deposit
rates in the fourth quarter of 2019 as this typically lags changes
in the interest rate environment. We plan to deploy the excess
liquidity gathered in the third quarter of 2019 to enhance net
interest income and also believe that the announced acquisitions
will be accretive to net interest margin. As always, we will strive
to grow without a commensurate increase in expenses and will
primarily measure that with the net overhead ratio which improved
to 1.40%, or by 24 basis points in the third quarter compared to
the prior quarter."
Mr. Wehmer noted, “Our mortgage banking business
production increased in the current quarter as loan volumes
originated for sale increased to $1.4 billion from $1.2 billion in
the second quarter of 2019. The favorable increase in
origination volumes was primarily a result of increased refinancing
activity due to the declining interest rate environment.
Additionally, production margin expanded due to strategic efforts
to enhance our origination channel mix. Declining long-term
interest rates also contributed to a $7.2 million reduction in our
mortgage servicing rights portfolio related to payoffs and paydowns
as well as a $4.0 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 $14.0 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,
"Overall credit quality metrics improved in the third quarter of
2019. The Company recorded net charge-offs of $9.4 million in the
third quarter of 2019 as compared to $22.3 million in the second
quarter of 2019. The $9.4 million includes $4.0 million of
additional net charge-offs (which were substantially reserved for
in prior quarters) related to the three non-performing credits
disclosed in the second quarter of 2019 and represents a return to
lower levels of net charge-offs. These three credits are
substantially resolved and are not expected to materially impact
future quarters. The ratio of non-performing assets as a percent of
total assets declined by two basis points to a historically low
level of 0.38%. We believe that the Company’s reserves remain
appropriate and we remain diligent in our review of credit."
Turning to the future, Mr. Wehmer stated, “We
have experienced significant franchise growth in 2019 and believe
that our opportunities for both internal and external growth remain
consistently strong. We plan to continue 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 recently completed acquisition of STC
Bancshares Corp. and the announced acquisition of SBC,
Incorporated, as well as focusing on 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 third quarter of 2019.
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SUMMARY OF RESULTS:
BALANCE SHEET
Total assets grew by $1.3 billion in the third
quarter of 2019 primarily due to an $823.7 million increase in
interest bearing deposits with banks and $405.5 million of loan
growth. 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 believes that the $2.3 billion of interest
bearing deposits with banks held as of September 30, 2019 is more
than sufficient liquidity to operate its business plan. Excess
liquidity is expected to be deployed in future quarters to enhance
net interest income.
Total liabilities grew by $1.2 billion in the
third quarter of 2019 primarily comprised of a $1.2 billion
increase in total deposits. The Company successfully
leveraged its retail deposit base in the third quarter of 2019 to
generate new deposits. In addition, the total deposit growth was
net of a $552 million reduction in brokered deposits. Management
believes in substantially funding the Company's 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. Non-brokered deposits now
comprise approximately 96% of total deposits.
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 third quarter of 2019, net interest
income totaled $264.9 million, a decrease of $1.3 million as
compared to the second quarter of 2019 and an increase of $17.3
million as compared to the third quarter of 2018. The $1.3 million
decrease in net interest income in the third quarter of 2019
compared to the second quarter of 2019 was attributable to a $16.3
million decrease due to a reduction in net interest margin
partially offset by a $12.1 million increase related to balance
sheet growth and a $2.9 million increase from one more day in the
quarter.
Net interest margin was 3.37% (3.39% on a fully
taxable-equivalent basis, non-GAAP) during the third quarter of
2019 compared to 3.62% (3.64% on a fully taxable-equivalent basis,
non-GAAP) during the second quarter of 2019 and 3.59% (3.61% on a
fully taxable-equivalent basis, non-GAAP) during the third quarter
of 2018. The 25 basis point decrease in net interest margin in the
third quarter of 2019 as compared to the second quarter of 2019 was
attributable to a 21 basis point decline in the yield on earnings
assets and a five basis point increase in the rate paid on interest
bearing liabilities, partially offset by a one basis point increase
in the net free funds contribution. The 21 basis point
decline in the yield on earning assets in the current quarter as
compared to the second quarter of 2019 was primarily due to a 14
basis point decline in the yield on loans along with the impact of
a higher average balance of interest bearing cash. The five basis
point increase in the rate paid on interest bearing liabilities in
the current quarter as compared to the prior quarter is primarily
due to a six basis point increase on the rate paid on interest
bearing deposits largely due to retail deposit promotions.
For the first nine months of 2019, net interest
income totaled $793.0 million, an increase of $82.2 million as
compared to the first nine months of 2018. Net interest margin was
3.56% (3.58% on a fully taxable-equivalent basis, non-GAAP) for the
first nine months of 2019 compared to 3.58% (3.60% on a fully
taxable-equivalent basis, non-GAAP) for the first nine 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 third quarter of 2019 totaled 15 basis points on an
annualized basis compared to 36 basis points on an annualized basis
in the second quarter of 2019 and eight basis points on an
annualized basis in the third quarter of 2018. Net
charge-offs totaled $9.4 million in the third quarter of 2019, a
$12.8 million decrease from $22.3 million in the second quarter of
2019 and a $4.8 million increase from $4.7 million in the third
quarter of 2018. The $9.4 million of net charge-offs in the current
quarter includes $4.0 million of additional net charge-offs (which
were substantially reserved for in prior quarters) related to the
three non-performing credits disclosed in the second quarter of
2019 and represents a return to lower levels of net charge-offs.
These three credits are substantially resolved and are not expected
to materially impact future quarters. The provision for credit
losses totaled $10.8 million for the third quarter of 2019 compared
to $24.6 million for the second quarter of 2019 and $11.0 million
for the third quarter of 2018. 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
September 30, 2019 and June 30, 2019 is shown on Table 12
of this report.
As of September 30, 2019, $51.1 million of
all loans, or 0.2%, were 60 to 89 days past due and $134.2 million,
or 0.5%, were 30 to 59 days (or one payment) past due. 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. 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 September 30, 2019 that are current with regard to
the contractual terms of the loan agreement represent 97.8% of the
total home equity portfolio. Residential real estate loans at
September 30, 2019 that are current with regards to the
contractual terms of the loan agreements comprise 98.4% 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 $161.8 million of allowance for loan
losses, there was $6.8 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 September 30,
2019.
The ratio of non-performing assets to total
assets was 0.38% as of September 30, 2019, compared to 0.40%
at June 30, 2019, and 0.52% at September 30, 2018.
Non-performing assets, excluding PCI loans, totaled $132.0 million
at September 30, 2019, compared to $133.5 million at
June 30, 2019 and $155.8 million at September 30, 2018.
Non-performing loans, excluding PCI loans, totaled $114.3 million,
or 0.44% of total loans, at September 30, 2019 compared to
$113.4 million, or 0.45% of total loans, at June 30, 2019 and
$127.2 million, or 0.55% of total loans, at September 30,
2018. Other real estate owned ("OREO") of $17.5 million at
September 30, 2019 decreased $2.3 million compared to $19.8
million at June 30, 2019 and decreased $10.8 million compared
to $28.3 million at September 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 decreased by $140,000
during the third quarter of 2019 as compared to the second quarter
of 2019 primarily due to decreased brokerage commissions. 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 $13.5
million in the third quarter of 2019 as compared to the second
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 third quarter of 2019. Production revenue
increased by $12.8 million in the third quarter of 2019 as compared
to the second quarter of 2019 primarily due to an increase in
origination volumes as a result of increased refinancing
activity. The percentage of origination volume from
refinancing activities was 52% in the third quarter of 2019 as
compared to 37% in the second quarter of 2019. Additionally,
production margin improved from 2.59% in the second quarter of 2019
to 3.01% in the third quarter of 2019 primarily due to a favorable
shift in origination channel mix. Mortgage banking revenue includes
revenue from activities related to originating, selling and
servicing residential real estate loans for the secondary
market.
During the third quarter of 2019, the fair value
of the mortgage servicing rights portfolio increased as retained
servicing rights led to the capitalization of $14.0 million
partially offset by negative fair value adjustments of $4.1 million
and a reduction in value of $7.2 million due to payoffs and
paydowns of the existing portfolio. The Company purchased an option
at the beginning of the third 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 $82,000 which was recorded in mortgage banking revenue.
The net gains recognized on investment
securities in the third quarter of 2019 and second quarter of 2019,
respectively, were primarily due to gains on investment securities
that were called and unrealized gains recognized on equity
securities held by the Company.
Other non-interest income increased by $3.4
million in the third quarter of 2019 as compared to the second
quarter of 2019 primarily due to increased income from
investments in partnerships and interest rate swaps.
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 $7.3 million in the third quarter of 2019 as compared to the
second quarter of 2019. The $7.3 million increase is comprised of
an increase of $2.7 million in salaries expense, $3.8 million in
commissions and incentive compensation and $782,000 in benefits
expense. The increase in salaries expense is primarily due to
increased staffing as the Company grows and acquisition related
expenses. 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 $13.3 million in the
third quarter of 2019, an increase of $555,000 as compared to the
second quarter of 2019. The increase in the current quarter relates
primarily to increased software licensing expenses.
Advertising and marketing expenses in the third
quarter of 2019 increased by $530,000 as compared to the second
quarter of 2019 primarily related to higher corporate sponsorship
costs as well as increased spending related to deposit generation
and brand awareness to grow our loan and deposit portfolios. The
level of marketing expenditures depends on the timing of
sponsorship programs utilized which are determined based on the
market area, targeted audience, competition and various other
factors.
FDIC insurance expense totaled $148,000 in the
third quarter of 2019, a decrease of $4.0 million as compared to
the second quarter of 2019. The decrease in the current quarter
relates primarily to FDIC assessment credits received by the 15
Wintrust affiliate banks.
Professional fees expense totaled $8.0 million
in the third quarter of 2019, an increase of $1.8 million as
compared to the second quarter of 2019. The increase in the current
quarter relates primarily to increased fees on consulting services
and legal fees. Professional fees include legal, audit, and tax
fees, external loan review costs, consulting arrangements and
normal regulatory exam assessments.
For more information regarding non-interest
expense, see Table 17 in this report.
INCOME TAXES
The Company recorded income tax expense of $35.5
million in the third quarter of 2019 compared to $28.7 million in
the second quarter of 2019 and $30.9 million in the third quarter
of 2018. The effective tax rates were 26.36% in the third quarter
of 2019 compared to 26.06% in the second quarter of 2019 and
25.13% in the third quarter of 2018. During the first nine months
of 2019, the Company recorded income tax expense of $93.7 million
compared to $89.0 million for the first nine months of 2018. The
effective tax rates were 25.78% for the first nine months of 2019
and 25.24% for the first nine months of 2018.
The year-to-date effective tax rates were
impacted by excess tax benefits related to share-based
compensation. These excess tax benefits were $1.7 million in the
first nine months of 2019 and $3.7 million in the first nine months
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 third quarter of 2019, this unit generated
significant retail deposit growth. However, the banking
segment also experienced net interest margin compression in part
due to current market conditions.
Mortgage banking revenue increased from $37.4
million for the second quarter of 2019 to $50.9 million for the
third quarter of 2019. Services charges on deposit accounts totaled
$10.0 million in the third quarter of 2019 an increase of $695,000
as compared to the second 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 September 30,
2019. When adjusted for the probability of closing, the pipelines
were estimated to be approximately $730 million to $810 million at
September 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 third quarter of 2019, the
specialty finance unit experienced higher revenue primarily as a
result of increased volumes within its insurance premium financing
receivables portfolio. Originations within the insurance premium
financing receivables portfolio were $2.4 billion during the third
quarter of 2019 and average balances increased by $446.4 million as
compared to the second quarter of 2019. The increase in average
balances primarily resulted in a $6.5 million increase in interest
income attributed to the insurance premium finance receivables
portfolio. The Company's leasing business grew during the third
quarter of 2019, with its portfolio of assets, including capital
leases, loans and equipment on operating leases, increasing $98.0
million to $1.5 billion at the end of the third quarter of 2019.
Revenues from the Company's out-sourced administrative services
business increased to $1.1 million in the third quarter of 2019 as
compared to $1.0 million in 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 decreased by $140,000 in the
third quarter of 2019 compared to the second quarter of 2019,
totaling $24.0 million in the current period. At September 30,
2019, the Company’s wealth management subsidiaries had
approximately $26.1 billion of assets under administration, which
included $3.3 billion of assets owned by the Company and its
subsidiary banks, representing a $188.4 million increase from the
$25.9 billion of assets under administration at June 30, 2019.
The increase in the third quarter of 2019 was primarily due to
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 iFreedom Direct
Corporation DBA Veterans First Mortgage ("Veterans First") with
assets including mortgage-servicing-rights on approximately 10,000
loans, totaling an estimated $1.6 billion in unpaid principal
balance. 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 third quarter of 2019, as compared to the second
quarter of 2019 (sequential quarter) and third quarter of 2018
(linked quarter), are shown in the table below:
|
|
|
|
|
|
% or(4)
basis point (bp) change from
2nd Quarter
2019 |
|
% or
basis point (bp)
change from
3rd Quarter
2018 |
|
Three Months Ended |
|
(Dollars in thousands, except per share data) |
Sep 30, 2019 |
|
Jun 30, 2019 |
|
Sep 30, 2018 |
|
Net income |
$ |
99,121 |
|
|
$ |
81,466 |
|
|
$ |
91,948 |
|
22 |
|
% |
|
8 |
|
% |
Net
income per common share – diluted |
1.69 |
|
|
1.38 |
|
|
1.57 |
|
22 |
|
|
|
8 |
|
|
Net
revenue (1) |
379,989 |
|
|
364,360 |
|
|
347,493 |
|
4 |
|
|
|
9 |
|
|
Net
interest income |
264,852 |
|
|
266,202 |
|
|
247,563 |
|
(1 |
) |
|
|
7 |
|
|
Net
interest margin |
3.37 |
% |
|
3.62 |
% |
|
3.59 |
% |
(25 |
) |
bp |
|
(22 |
) |
bp |
Net
interest margin - fully taxable equivalent (non-GAAP)
(2) |
3.39 |
|
|
3.64 |
|
|
3.61 |
|
(25 |
) |
|
|
(22 |
) |
|
Net
overhead ratio (3) |
1.40 |
|
|
1.64 |
|
|
1.53 |
|
(24 |
) |
|
|
(13 |
) |
|
Return on
average assets |
1.16 |
|
|
1.02 |
|
|
1.24 |
|
14 |
|
|
|
(8 |
) |
|
Return on
average common equity |
11.42 |
|
|
9.68 |
|
|
11.86 |
|
174 |
|
|
|
(44 |
) |
|
Return on average tangible common equity (non-GAAP)
(2) |
14.36 |
|
|
12.28 |
|
|
14.64 |
|
208 |
|
|
|
(28 |
) |
|
At end of period |
|
|
|
|
|
|
|
|
|
|
Total
assets |
$ |
34,911,902 |
|
|
$ |
33,641,769 |
|
|
$ |
30,142,731 |
|
15 |
|
% |
|
16 |
|
% |
Total
loans (5) |
25,710,171 |
|
|
25,304,659 |
|
|
23,123,951 |
|
6 |
|
|
|
11 |
|
|
Total
deposits |
28,710,379 |
|
|
27,518,815 |
|
|
24,916,715 |
|
17 |
|
|
|
15 |
|
|
Total shareholders’ equity |
3,540,325 |
|
|
3,446,950 |
|
|
3,179,822 |
|
11 |
|
|
|
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 |
Nine Months Ended |
(Dollars in thousands, except per share data) |
Sep 30,
2019 |
|
Jun 30,
2019 |
|
Mar 31,
2019 |
|
Dec 31,
2018 |
|
Sep 30,
2018 |
Sep 30,
2019 |
|
Sep 30,
2018 |
Selected Financial Condition Data (at end of
period):
|
|
|
|
|
Total
assets |
$ |
34,911,902 |
|
|
$ |
33,641,769 |
|
|
$ |
32,358,621 |
|
|
$ |
31,244,849 |
|
|
$ |
30,142,731 |
|
|
|
|
Total
loans (1) |
25,710,171 |
|
|
25,304,659 |
|
|
24,214,629 |
|
|
23,820,691 |
|
|
23,123,951 |
|
|
|
|
Total
deposits |
28,710,379 |
|
|
27,518,815 |
|
|
26,804,742 |
|
|
26,094,678 |
|
|
24,916,715 |
|
|
|
|
Junior
subordinated debentures |
253,566 |
|
|
253,566 |
|
|
253,566 |
|
|
253,566 |
|
|
253,566 |
|
|
|
|
Total shareholders’ equity |
3,540,325 |
|
|
3,446,950 |
|
|
3,371,972 |
|
|
3,267,570 |
|
|
3,179,822 |
|
|
|
|
Selected Statements of Income Data: |
|
|
|
Net interest income |
$ |
264,852 |
|
|
$ |
266,202 |
|
|
$ |
261,986 |
|
|
$ |
254,088 |
|
|
$ |
247,563 |
|
$ |
793,040 |
|
|
$ |
710,815 |
|
Net
revenue (2) |
379,989 |
|
|
364,360 |
|
|
343,643 |
|
|
329,396 |
|
|
347,493 |
|
1,087,992 |
|
|
991,657 |
|
Net
income |
99,121 |
|
|
81,466 |
|
|
89,146 |
|
|
79,657 |
|
|
91,948 |
|
269,733 |
|
|
263,509 |
|
Net
income per common share – Basic |
1.71 |
|
|
1.40 |
|
|
1.54 |
|
|
1.38 |
|
|
1.59 |
|
4.65 |
|
|
4.57 |
|
Net income per common share – Diluted |
1.69 |
|
|
1.38 |
|
|
1.52 |
|
|
1.35 |
|
|
1.57 |
|
4.60 |
|
|
4.50 |
|
Selected Financial Ratios and Other Data: |
|
|
|
Performance Ratios: |
|
|
|
Net
interest margin |
3.37 |
% |
|
3.62 |
% |
|
3.70 |
% |
|
3.61 |
% |
|
3.59 |
% |
3.56 |
% |
|
3.58 |
% |
Net
interest margin - fully taxable equivalent (non-GAAP)
(3) |
3.39 |
|
|
3.64 |
|
|
3.72 |
|
|
3.63 |
|
|
3.61 |
|
3.58 |
|
|
3.60 |
|
Non-interest income to average assets |
1.35 |
|
|
1.23 |
|
|
1.06 |
|
|
0.99 |
|
|
1.34 |
|
1.22 |
|
|
1.31 |
|
Non-interest expense to average assets |
2.74 |
|
|
2.87 |
|
|
2.79 |
|
|
2.78 |
|
|
2.87 |
|
2.80 |
|
|
2.87 |
|
Net
overhead ratio (4) |
1.40 |
|
|
1.64 |
|
|
1.72 |
|
|
1.79 |
|
|
1.53 |
|
1.58 |
|
|
1.56 |
|
Return on
average assets |
1.16 |
|
|
1.02 |
|
|
1.16 |
|
|
1.05 |
|
|
1.24 |
|
1.11 |
|
|
1.23 |
|
Return on
average common equity |
11.42 |
|
|
9.68 |
|
|
11.09 |
|
|
10.01 |
|
|
11.86 |
|
10.74 |
|
|
11.71 |
|
Return on
average tangible common equity (non-GAAP) (3) |
14.36 |
|
|
12.28 |
|
|
14.14 |
|
|
12.48 |
|
|
14.64 |
|
13.60 |
|
|
14.47 |
|
Average
total assets |
$ |
33,954,592 |
|
|
$ |
32,055,769 |
|
|
$ |
31,216,171 |
|
|
$ |
30,179,887 |
|
|
$ |
29,525,109 |
|
$ |
32,418,875 |
|
|
$ |
28,640,380 |
|
Average
total shareholders’ equity |
3,496,714 |
|
|
3,414,340 |
|
|
3,309,078 |
|
|
3,200,654 |
|
|
3,131,943 |
|
3,407,398 |
|
|
3,064,396 |
|
Average
loans to average deposits ratio |
90.6 |
% |
|
93.9 |
% |
|
92.7 |
% |
|
92.4 |
% |
|
92.2 |
% |
92.4 |
% |
|
94.2 |
% |
Period-end loans to deposits ratio |
89.6 |
|
|
92.0 |
|
|
90.3 |
|
|
91.3 |
|
|
92.8 |
|
|
|
|
Common Share Data at end of period: |
|
|
|
Market
price per common share |
$ |
64.63 |
|
|
$ |
73.16 |
|
|
$ |
67.33 |
|
|
$ |
66.49 |
|
|
$ |
84.94 |
|
|
|
|
Book
value per common share |
60.24 |
|
|
58.62 |
|
|
57.33 |
|
|
55.71 |
|
|
54.19 |
|
|
|
|
Tangible
book value per common share (non-GAAP) (3) |
49.16 |
|
|
47.48 |
|
|
46.38 |
|
|
44.67 |
|
|
44.16 |
|
|
|
|
Common shares outstanding |
56,698,429 |
|
|
56,667,846 |
|
|
56,638,968 |
|
|
56,407,558 |
|
|
56,377,169 |
|
|
|
|
Other
Data at end of period: |
|
|
|
Tier 1
leverage ratio (5) |
8.8 |
% |
|
9.1 |
% |
|
9.1 |
% |
|
9.1 |
% |
|
9.3 |
% |
|
|
|
Risk-based capital ratios: |
|
|
|
|
|
|
|
|
|
|
|
|
Tier 1
capital ratio (5) |
9.7 |
|
|
9.6 |
|
|
9.8 |
|
|
9.7 |
|
|
10.0 |
|
|
|
|
Common
equity tier 1 capital ratio(5) |
9.3 |
|
|
9.2 |
|
|
9.3 |
|
|
9.3 |
|
|
9.5 |
|
|
|
|
Total
capital ratio (5) |
12.4 |
|
|
12.4 |
|
|
11.7 |
|
|
11.6 |
|
|
12.0 |
|
|
|
|
Allowance
for credit losses (6) |
$ |
163,273 |
|
|
$ |
161,901 |
|
|
$ |
159,622 |
|
|
$ |
154,164 |
|
|
$ |
151,001 |
|
|
|
|
Non-performing loans |
114,284 |
|
|
113,447 |
|
|
117,586 |
|
|
113,234 |
|
|
127,227 |
|
|
|
|
Allowance
for credit losses to total loans (6) |
0.64 |
% |
|
0.64 |
% |
|
0.66 |
% |
|
0.65 |
% |
|
0.65 |
% |
|
|
|
Non-performing loans to total loans |
0.44 |
|
|
0.45 |
|
|
0.49 |
|
|
0.48 |
|
|
0.55 |
|
|
|
|
Number
of: |
|
|
|
|
|
|
|
|
|
|
|
|
Bank subsidiaries |
15 |
|
|
15 |
|
|
15 |
|
|
15 |
|
|
15 |
|
|
|
|
Banking offices |
174 |
|
|
172 |
|
|
170 |
|
|
167 |
|
|
166 |
|
|
|
|
- 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) |
|
Sep 30, |
|
Jun 30, |
|
Mar 31, |
|
Dec 31, |
|
Sep 30, |
(In
thousands) |
2019 |
|
2019 |
|
2019 |
|
2018 |
|
2018 |
Assets |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash and
due from banks |
$ |
448,755 |
|
|
$ |
300,934 |
|
|
$ |
270,765 |
|
|
$ |
392,142 |
|
|
$ |
279,936 |
|
Federal
funds sold and securities purchased under resale agreements |
59 |
|
|
58 |
|
|
58 |
|
|
58 |
|
|
57 |
|
Interest
bearing deposits with banks |
2,260,806 |
|
|
1,437,105 |
|
|
1,609,852 |
|
|
1,099,594 |
|
|
1,137,044 |
|
Available-for-sale securities, at fair value |
2,270,059 |
|
|
2,186,154 |
|
|
2,185,782 |
|
|
2,126,081 |
|
|
2,164,985 |
|
Held-to-maturity securities, at amortized cost |
1,095,802 |
|
|
1,191,634 |
|
|
1,051,542 |
|
|
1,067,439 |
|
|
966,438 |
|
Trading
account securities |
3,204 |
|
|
2,430 |
|
|
559 |
|
|
1,692 |
|
|
688 |
|
Equity
securities with readily determinable fair value |
46,086 |
|
|
44,319 |
|
|
47,653 |
|
|
34,717 |
|
|
36,414 |
|
Federal
Home Loan Bank and Federal Reserve Bank stock |
92,714 |
|
|
92,026 |
|
|
89,013 |
|
|
91,354 |
|
|
99,998 |
|
Brokerage
customer receivables |
14,943 |
|
|
13,569 |
|
|
14,219 |
|
|
12,609 |
|
|
15,649 |
|
Mortgage
loans held-for-sale |
464,727 |
|
|
394,975 |
|
|
248,557 |
|
|
264,070 |
|
|
338,111 |
|
Loans,
net of unearned income |
25,710,171 |
|
|
25,304,659 |
|
|
24,214,629 |
|
|
23,820,691 |
|
|
23,123,951 |
|
Allowance
for loan losses |
(161,763 |
) |
|
(160,421 |
) |
|
(158,212 |
) |
|
(152,770 |
) |
|
(149,756 |
) |
Net loans |
25,548,408 |
|
|
25,144,238 |
|
|
24,056,417 |
|
|
23,667,921 |
|
|
22,974,195 |
|
Premises
and equipment, net |
721,856 |
|
|
711,214 |
|
|
676,037 |
|
|
671,169 |
|
|
664,469 |
|
Lease
investments, net |
228,647 |
|
|
230,111 |
|
|
224,240 |
|
|
233,208 |
|
|
199,241 |
|
Accrued
interest receivable and other assets |
1,087,864 |
|
|
1,023,896 |
|
|
888,492 |
|
|
696,707 |
|
|
700,568 |
|
Trade
date securities receivable |
— |
|
|
237,607 |
|
|
375,211 |
|
|
263,523 |
|
|
— |
|
Goodwill |
584,315 |
|
|
584,911 |
|
|
573,658 |
|
|
573,141 |
|
|
537,560 |
|
Other
intangible assets |
43,657 |
|
|
46,588 |
|
|
46,566 |
|
|
49,424 |
|
|
27,378 |
|
Total assets |
$ |
34,911,902 |
|
|
$ |
33,641,769 |
|
|
$ |
32,358,621 |
|
|
$ |
31,244,849 |
|
|
$ |
30,142,731 |
|
Liabilities and Shareholders’ Equity |
|
|
|
|
|
|
|
|
|
Deposits: |
|
|
|
|
|
|
|
|
|
Non-interest bearing |
$ |
7,067,960 |
|
|
$ |
6,719,958 |
|
|
$ |
6,353,456 |
|
|
$ |
6,569,880 |
|
|
$ |
6,399,213 |
|
Interest bearing |
21,642,419 |
|
|
20,798,857 |
|
|
20,451,286 |
|
|
19,524,798 |
|
|
18,517,502 |
|
Total deposits |
28,710,379 |
|
|
27,518,815 |
|
|
26,804,742 |
|
|
26,094,678 |
|
|
24,916,715 |
|
Federal
Home Loan Bank advances |
574,847 |
|
|
574,823 |
|
|
576,353 |
|
|
426,326 |
|
|
615,000 |
|
Other
borrowings |
410,488 |
|
|
418,057 |
|
|
372,194 |
|
|
393,855 |
|
|
373,571 |
|
Subordinated notes |
435,979 |
|
|
436,021 |
|
|
139,235 |
|
|
139,210 |
|
|
139,172 |
|
Junior
subordinated debentures |
253,566 |
|
|
253,566 |
|
|
253,566 |
|
|
253,566 |
|
|
253,566 |
|
Trade
date securities payable |
226 |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
Accrued
interest payable and other liabilities |
986,092 |
|
|
993,537 |
|
|
840,559 |
|
|
669,644 |
|
|
664,885 |
|
Total liabilities |
31,371,577 |
|
|
30,194,819 |
|
|
28,986,649 |
|
|
27,977,279 |
|
|
26,962,909 |
|
Shareholders’ Equity: |
|
|
|
|
|
|
|
|
|
Preferred stock |
125,000 |
|
|
125,000 |
|
|
125,000 |
|
|
125,000 |
|
|
125,000 |
|
Common stock |
56,825 |
|
|
56,794 |
|
|
56,765 |
|
|
56,518 |
|
|
56,486 |
|
Surplus |
1,574,011 |
|
|
1,569,969 |
|
|
1,565,185 |
|
|
1,557,984 |
|
|
1,553,353 |
|
Treasury stock |
(6,799 |
) |
|
(6,650 |
) |
|
(6,650 |
) |
|
(5,634 |
) |
|
(5,547 |
) |
Retained earnings |
1,830,165 |
|
|
1,747,266 |
|
|
1,682,016 |
|
|
1,610,574 |
|
|
1,543,680 |
|
Accumulated other comprehensive loss |
(38,877 |
) |
|
(45,429 |
) |
|
(50,344 |
) |
|
(76,872 |
) |
|
(93,150 |
) |
Total shareholders’ equity |
3,540,325 |
|
|
3,446,950 |
|
|
3,371,972 |
|
|
3,267,570 |
|
|
3,179,822 |
|
Total liabilities and shareholders’ equity |
$ |
34,911,902 |
|
|
$ |
33,641,769 |
|
|
$ |
32,358,621 |
|
|
$ |
31,244,849 |
|
|
$ |
30,142,731 |
|
WINTRUST FINANCIAL CORPORATION AND
SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED)
|
Three Months Ended
|
Nine Months Ended
|
(In
thousands, except per share data) |
Sep 30,
2019 |
|
Jun 30,
2019 |
|
Mar 31,
2019 |
|
Dec 31,
2018 |
|
Sep 30,
2018 |
|
Sep 30,
2019 |
|
Sep 30,
2018 |
Interest income |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest and fees on loans |
$ |
314,277 |
|
|
$ |
309,161 |
|
|
$ |
296,987 |
|
|
$ |
283,311 |
|
|
$ |
271,134 |
|
|
$ |
920,425 |
|
|
$ |
761,191 |
|
Mortgage loans held-for-sale |
3,478 |
|
|
3,104 |
|
|
2,209 |
|
|
3,409 |
|
|
5,285 |
|
|
8,791 |
|
|
12,329 |
|
Interest bearing deposits with banks |
10,326 |
|
|
5,206 |
|
|
5,300 |
|
|
5,628 |
|
|
5,423 |
|
|
20,832 |
|
|
11,462 |
|
Federal funds sold and securities purchased under resale
agreements |
310 |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
310 |
|
|
1 |
|
Investment securities |
24,758 |
|
|
27,721 |
|
|
27,956 |
|
|
26,656 |
|
|
21,710 |
|
|
80,435 |
|
|
60,726 |
|
Trading account securities |
20 |
|
|
5 |
|
|
8 |
|
|
14 |
|
|
11 |
|
|
33 |
|
|
29 |
|
Federal Home Loan Bank and Federal Reserve Bank stock |
1,294 |
|
|
1,439 |
|
|
1,355 |
|
|
1,343 |
|
|
1,235 |
|
|
4,088 |
|
|
3,988 |
|
Brokerage customer receivables |
164 |
|
|
178 |
|
|
155 |
|
|
235 |
|
|
164 |
|
|
497 |
|
|
488 |
|
Total interest income |
354,627 |
|
|
346,814 |
|
|
333,970 |
|
|
320,596 |
|
|
304,962 |
|
|
1,035,411 |
|
|
850,214 |
|
Interest expense |
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest on deposits |
76,168 |
|
|
67,024 |
|
|
60,976 |
|
|
55,975 |
|
|
48,736 |
|
|
204,168 |
|
|
110,578 |
|
Interest on Federal Home Loan Bank advances |
1,774 |
|
|
4,193 |
|
|
2,450 |
|
|
2,563 |
|
|
1,947 |
|
|
8,417 |
|
|
9,849 |
|
Interest on other borrowings |
3,466 |
|
|
3,525 |
|
|
3,633 |
|
|
3,199 |
|
|
2,003 |
|
|
10,624 |
|
|
5,400 |
|
Interest on subordinated notes |
5,470 |
|
|
2,806 |
|
|
1,775 |
|
|
1,788 |
|
|
1,773 |
|
|
10,051 |
|
|
5,333 |
|
Interest on junior subordinated debentures |
2,897 |
|
|
3,064 |
|
|
3,150 |
|
|
2,983 |
|
|
2,940 |
|
|
9,111 |
|
|
8,239 |
|
Total interest expense |
89,775 |
|
|
80,612 |
|
|
71,984 |
|
|
66,508 |
|
|
57,399 |
|
|
242,371 |
|
|
139,399 |
|
Net interest income |
264,852 |
|
|
266,202 |
|
|
261,986 |
|
|
254,088 |
|
|
247,563 |
|
|
793,040 |
|
|
710,815 |
|
Provision
for credit losses |
10,834 |
|
|
24,580 |
|
|
10,624 |
|
|
10,401 |
|
|
11,042 |
|
|
46,038 |
|
|
24,431 |
|
Net
interest income after provision for credit losses |
254,018 |
|
|
241,622 |
|
|
251,362 |
|
|
243,687 |
|
|
236,521 |
|
|
747,002 |
|
|
686,384 |
|
Non-interest income |
|
|
|
|
|
|
|
|
|
|
|
|
|
Wealth management |
23,999 |
|
|
24,139 |
|
|
23,977 |
|
|
22,726 |
|
|
22,634 |
|
|
72,115 |
|
|
68,237 |
|
Mortgage banking |
50,864 |
|
|
37,411 |
|
|
18,158 |
|
|
24,182 |
|
|
42,014 |
|
|
106,433 |
|
|
112,808 |
|
Service charges on deposit accounts |
9,972 |
|
|
9,277 |
|
|
8,848 |
|
|
9,065 |
|
|
9,331 |
|
|
28,097 |
|
|
27,339 |
|
Gains (losses) on investment securities, net |
710 |
|
|
864 |
|
|
1,364 |
|
|
(2,649 |
) |
|
90 |
|
|
2,938 |
|
|
(249 |
) |
Fees from covered call options |
— |
|
|
643 |
|
|
1,784 |
|
|
626 |
|
|
627 |
|
|
2,427 |
|
|
2,893 |
|
Trading gains (losses), net |
11 |
|
|
(44 |
) |
|
(171 |
) |
|
(155 |
) |
|
(61 |
) |
|
(204 |
) |
|
166 |
|
Operating lease income, net |
12,025 |
|
|
11,733 |
|
|
10,796 |
|
|
10,882 |
|
|
9,132 |
|
|
34,554 |
|
|
27,569 |
|
Other |
17,556 |
|
|
14,135 |
|
|
16,901 |
|
|
10,631 |
|
|
16,163 |
|
|
48,592 |
|
|
42,079 |
|
Total non-interest income |
115,137 |
|
|
98,158 |
|
|
81,657 |
|
|
75,308 |
|
|
99,930 |
|
|
294,952 |
|
|
280,842 |
|
Non-interest expense |
|
|
|
|
|
|
|
|
|
|
|
|
|
Salaries and employee benefits |
141,024 |
|
|
133,732 |
|
|
125,723 |
|
|
122,111 |
|
|
123,855 |
|
|
400,479 |
|
|
357,966 |
|
Equipment |
13,314 |
|
|
12,759 |
|
|
11,770 |
|
|
11,523 |
|
|
10,827 |
|
|
37,843 |
|
|
31,426 |
|
Operating lease equipment depreciation |
8,907 |
|
|
8,768 |
|
|
8,319 |
|
|
8,462 |
|
|
7,370 |
|
|
25,994 |
|
|
20,843 |
|
Occupancy, net |
14,991 |
|
|
15,921 |
|
|
16,245 |
|
|
15,980 |
|
|
14,404 |
|
|
47,157 |
|
|
41,834 |
|
Data processing |
6,522 |
|
|
6,204 |
|
|
7,525 |
|
|
8,447 |
|
|
9,335 |
|
|
20,251 |
|
|
26,580 |
|
Advertising and marketing |
13,375 |
|
|
12,845 |
|
|
9,858 |
|
|
9,414 |
|
|
11,120 |
|
|
36,078 |
|
|
31,726 |
|
Professional fees |
8,037 |
|
|
6,228 |
|
|
5,556 |
|
|
9,259 |
|
|
9,914 |
|
|
19,821 |
|
|
23,047 |
|
Amortization of other intangible assets |
2,928 |
|
|
2,957 |
|
|
2,942 |
|
|
1,407 |
|
|
1,163 |
|
|
8,827 |
|
|
3,164 |
|
FDIC insurance |
148 |
|
|
4,127 |
|
|
3,576 |
|
|
4,044 |
|
|
4,205 |
|
|
7,851 |
|
|
13,165 |
|
OREO expense, net |
1,170 |
|
|
1,290 |
|
|
632 |
|
|
1,618 |
|
|
596 |
|
|
3,092 |
|
|
4,502 |
|
Other |
24,138 |
|
|
24,776 |
|
|
22,228 |
|
|
19,068 |
|
|
20,848 |
|
|
71,142 |
|
|
60,502 |
|
Total non-interest expense |
234,554 |
|
|
229,607 |
|
|
214,374 |
|
|
211,333 |
|
|
213,637 |
|
|
678,535 |
|
|
614,755 |
|
Income
before taxes |
134,601 |
|
|
110,173 |
|
|
118,645 |
|
|
107,662 |
|
|
122,814 |
|
|
363,419 |
|
|
352,471 |
|
Income
tax expense |
35,480 |
|
|
28,707 |
|
|
29,499 |
|
|
28,005 |
|
|
30,866 |
|
|
93,686 |
|
|
88,962 |
|
Net income |
$ |
99,121 |
|
|
$ |
81,466 |
|
|
$ |
89,146 |
|
|
$ |
79,657 |
|
|
$ |
91,948 |
|
|
$ |
269,733 |
|
|
$ |
263,509 |
|
Preferred
stock dividends |
2,050 |
|
|
2,050 |
|
|
2,050 |
|
|
2,050 |
|
|
2,050 |
|
|
6,150 |
|
|
6,150 |
|
Net income applicable to common shares |
$ |
97,071 |
|
|
$ |
79,416 |
|
|
$ |
87,096 |
|
|
$ |
77,607 |
|
|
$ |
89,898 |
|
|
$ |
263,583 |
|
|
$ |
257,359 |
|
Net income per common share - Basic |
$ |
1.71 |
|
|
$ |
1.40 |
|
|
$ |
1.54 |
|
|
$ |
1.38 |
|
|
$ |
1.59 |
|
|
$ |
4.65 |
|
|
$ |
4.57 |
|
Net income per common share - Diluted |
$ |
1.69 |
|
|
$ |
1.38 |
|
|
$ |
1.52 |
|
|
$ |
1.35 |
|
|
$ |
1.57 |
|
|
$ |
4.60 |
|
|
$ |
4.50 |
|
Cash dividends declared per common share |
$ |
0.25 |
|
|
$ |
0.25 |
|
|
$ |
0.25 |
|
|
$ |
0.19 |
|
|
$ |
0.19 |
|
|
$ |
0.75 |
|
|
$ |
0.57 |
|
Weighted
average common shares outstanding |
56,690 |
|
|
56,662 |
|
|
56,529 |
|
|
56,395 |
|
|
56,366 |
|
|
56,627 |
|
|
56,268 |
|
Dilutive
potential common shares |
773 |
|
|
699 |
|
|
699 |
|
|
892 |
|
|
918 |
|
|
724 |
|
|
912 |
|
Average common shares and dilutive common shares |
57,463 |
|
|
57,361 |
|
|
57,228 |
|
|
57,287 |
|
|
57,284 |
|
|
57,351 |
|
|
57,180 |
|
TABLE 1: LOAN PORTFOLIO MIX AND GROWTH
RATES
|
|
|
|
|
|
|
|
|
|
% Growth From |
(Dollars in thousands) |
Sep 30,
2019 |
|
Jun 30,
2019 |
|
Mar 31,
2019 |
|
Dec 31,
2018 |
|
Sep 30,
2018 |
Dec 31,
2018 (1) |
|
Sep 30,
2018 |
Balance: |
|
|
|
|
|
|
|
|
|
|
|
|
Commercial |
$ |
8,195,602 |
|
|
$ |
8,270,774 |
|
|
$ |
7,994,191 |
|
|
$ |
7,828,538 |
|
|
$ |
7,473,958 |
|
6 |
% |
|
10 |
% |
Commercial real estate |
7,448,667 |
|
|
7,276,244 |
|
|
6,973,505 |
|
|
6,933,252 |
|
|
6,746,774 |
|
10 |
|
|
10 |
|
Home equity |
512,303 |
|
|
527,370 |
|
|
528,448 |
|
|
552,343 |
|
|
578,844 |
|
(10 |
) |
|
(11 |
) |
Residential real estate |
1,218,666 |
|
|
1,118,178 |
|
|
1,053,524 |
|
|
1,002,464 |
|
|
924,250 |
|
29 |
|
|
32 |
|
Premium finance receivables - commercial |
3,449,950 |
|
|
3,368,423 |
|
|
2,988,788 |
|
|
2,841,659 |
|
|
2,885,327 |
|
29 |
|
|
20 |
|
Premium finance receivables - life insurance |
4,795,496 |
|
|
4,634,478 |
|
|
4,555,369 |
|
|
4,541,794 |
|
|
4,398,971 |
|
7 |
|
|
9 |
|
Consumer and other |
89,487 |
|
|
109,192 |
|
|
120,804 |
|
|
120,641 |
|
|
115,827 |
|
(35 |
) |
|
(23 |
) |
Total loans, net of unearned income |
$ |
25,710,171 |
|
|
$ |
25,304,659 |
|
|
$ |
24,214,629 |
|
|
$ |
23,820,691 |
|
|
$ |
23,123,951 |
|
11 |
% |
|
11 |
% |
Mix: |
|
|
|
|
|
|
|
|
|
|
|
|
Commercial |
32 |
% |
|
33 |
% |
|
33 |
% |
|
33 |
% |
|
32 |
% |
|
|
|
Commercial real estate |
29 |
|
|
29 |
|
|
29 |
|
|
29 |
|
|
29 |
|
|
|
|
Home equity |
2 |
|
|
2 |
|
|
2 |
|
|
2 |
|
|
3 |
|
|
|
|
Residential real estate |
5 |
|
|
4 |
|
|
4 |
|
|
4 |
|
|
4 |
|
|
|
|
Premium finance receivables - commercial |
13 |
|
|
13 |
|
|
12 |
|
|
12 |
|
|
12 |
|
|
|
|
Premium finance receivables - life insurance |
19 |
|
|
18 |
|
|
19 |
|
|
19 |
|
|
19 |
|
|
|
|
Consumer and other |
0 |
|
|
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 September 30, 2019 |
(Dollars in thousands) |
Balance |
|
%
of Total Balance |
|
Nonaccrual |
|
> 90 Days
Past Due
and Still Accruing |
|
Allowance
For Loan
Losses Allocation |
Commercial: |
|
|
|
|
|
|
|
|
|
Commercial, industrial and other |
$ |
5,150,567 |
|
|
32.9 |
% |
|
$ |
34,397 |
|
|
$ |
— |
|
|
$ |
51,463 |
|
Franchise |
914,774 |
|
|
5.9 |
|
|
3,752 |
|
|
— |
|
|
8,308 |
|
Mortgage warehouse lines of credit |
314,697 |
|
|
2.0 |
|
|
— |
|
|
— |
|
|
2,481 |
|
Asset-based lending |
1,045,869 |
|
|
6.7 |
|
|
5,782 |
|
|
— |
|
|
8,445 |
|
Leases |
754,163 |
|
|
4.8 |
|
|
— |
|
|
— |
|
|
2,069 |
|
PCI - commercial loans (1) |
15,532 |
|
|
0.1 |
|
|
— |
|
|
382 |
|
|
361 |
|
Total commercial |
$ |
8,195,602 |
|
|
52.4 |
% |
|
$ |
43,931 |
|
|
$ |
382 |
|
|
$ |
73,127 |
|
Commercial Real Estate: |
|
|
|
|
|
|
|
|
|
Construction |
$ |
850,575 |
|
|
5.4 |
% |
|
$ |
1,030 |
|
|
$ |
— |
|
|
$ |
9,405 |
|
Land |
175,386 |
|
|
1.1 |
|
|
994 |
|
|
— |
|
|
4,801 |
|
Office |
996,931 |
|
|
6.4 |
|
|
8,158 |
|
|
— |
|
|
10,066 |
|
Industrial |
1,009,680 |
|
|
6.5 |
|
|
100 |
|
|
— |
|
|
7,021 |
|
Retail |
1,004,720 |
|
|
6.4 |
|
|
7,174 |
|
|
— |
|
|
6,718 |
|
Multi-family |
1,291,825 |
|
|
8.3 |
|
|
690 |
|
|
— |
|
|
12,504 |
|
Mixed use and other |
2,002,267 |
|
|
12.8 |
|
|
3,411 |
|
|
— |
|
|
14,370 |
|
PCI - commercial real estate (1) |
117,283 |
|
|
0.7 |
|
|
— |
|
|
4,992 |
|
|
53 |
|
Total commercial real estate |
$ |
7,448,667 |
|
|
47.6 |
% |
|
$ |
21,557 |
|
|
$ |
4,992 |
|
|
$ |
64,938 |
|
Total commercial and commercial real estate |
$ |
15,644,269 |
|
|
100.0 |
% |
|
$ |
65,488 |
|
|
$ |
5,374 |
|
|
$ |
138,065 |
|
|
|
|
|
|
|
|
|
|
|
Commercial real estate - collateral location by
state: |
|
|
|
|
|
|
|
|
|
Illinois |
$ |
5,654,827 |
|
|
75.9 |
% |
|
|
|
|
|
|
Wisconsin |
744,577 |
|
|
10.0 |
|
|
|
|
|
|
|
Total primary markets |
$ |
6,399,404 |
|
|
85.9 |
% |
|
|
|
|
|
|
Indiana |
193,350 |
|
|
2.6 |
|
|
|
|
|
|
|
Florida |
80,120 |
|
|
1.1 |
|
|
|
|
|
|
|
Arizona |
62,657 |
|
|
0.8 |
|
|
|
|
|
|
|
California |
67,999 |
|
|
0.9 |
|
|
|
|
|
|
|
Other |
645,137 |
|
|
8.7 |
|
|
|
|
|
|
|
Total commercial real estate |
$ |
7,448,667 |
|
|
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) |
Sep 30,
2019 |
|
Jun 30,
2019 |
|
Mar 31,
2019 |
|
Dec 31,
2018 |
|
Sep 30,
2018 |
Dec 31,
2018 (1) |
|
Sep 30,
2018 |
Balance: |
|
|
|
|
|
|
|
|
|
|
|
|
Non-interest bearing |
$ |
7,067,960 |
|
|
$ |
6,719,958 |
|
|
$ |
6,353,456 |
|
|
$ |
6,569,880 |
|
|
$ |
6,399,213 |
|
10 |
% |
|
10 |
% |
NOW and interest bearing demand deposits |
2,966,098 |
|
|
2,788,976 |
|
|
2,948,576 |
|
|
2,897,133 |
|
|
2,512,259 |
|
3 |
|
|
18 |
|
Wealth management deposits (2) |
2,795,838 |
|
|
3,220,256 |
|
|
3,328,781 |
|
|
2,996,764 |
|
|
2,520,120 |
|
(9 |
) |
|
11 |
|
Money market |
7,326,899 |
|
|
6,460,098 |
|
|
6,093,596 |
|
|
5,704,866 |
|
|
5,429,921 |
|
38 |
|
|
35 |
|
Savings |
2,934,348 |
|
|
2,823,904 |
|
|
2,729,626 |
|
|
2,665,194 |
|
|
2,595,164 |
|
14 |
|
|
13 |
|
Time certificates of deposit |
5,619,236 |
|
|
5,505,623 |
|
|
5,350,707 |
|
|
5,260,841 |
|
|
5,460,038 |
|
9 |
|
|
3 |
|
Total deposits |
$ |
28,710,379 |
|
|
$ |
27,518,815 |
|
|
$ |
26,804,742 |
|
|
$ |
26,094,678 |
|
|
$ |
24,916,715 |
|
13 |
% |
|
15 |
% |
Mix: |
|
|
|
|
|
|
|
|
|
|
|
|
Non-interest bearing |
25 |
% |
|
24 |
% |
|
24 |
% |
|
25 |
% |
|
26 |
% |
|
|
|
NOW and interest bearing demand deposits |
10 |
|
|
10 |
|
|
11 |
|
|
11 |
|
|
10 |
|
|
|
|
Wealth management deposits (2) |
10 |
|
|
12 |
|
|
12 |
|
|
12 |
|
|
10 |
|
|
|
|
Money market |
25 |
|
|
24 |
|
|
23 |
|
|
22 |
|
|
22 |
|
|
|
|
Savings |
10 |
|
|
10 |
|
|
10 |
|
|
10 |
|
|
10 |
|
|
|
|
Time certificates of deposit |
20 |
|
|
20 |
|
|
20 |
|
|
20 |
|
|
22 |
|
|
|
|
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 September 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 |
$ |
— |
|
|
$ |
32,568 |
|
|
$ |
91,118 |
|
|
$ |
701,268 |
|
|
$ |
824,954 |
|
|
1.66 |
% |
4-6
months |
— |
|
|
27,147 |
|
|
— |
|
|
845,167 |
|
|
872,314 |
|
|
2.01 |
|
7-9
months |
— |
|
|
11,048 |
|
|
— |
|
|
1,155,153 |
|
|
1,166,201 |
|
|
2.18 |
|
10-12
months |
— |
|
|
18,177 |
|
|
— |
|
|
529,793 |
|
|
547,970 |
|
|
1.92 |
|
13-18
months |
— |
|
|
15,977 |
|
|
— |
|
|
733,072 |
|
|
749,049 |
|
|
2.36 |
|
19-24
months |
1,000 |
|
|
9,714 |
|
|
— |
|
|
1,128,392 |
|
|
1,139,106 |
|
|
2.62 |
|
24+
months |
— |
|
|
5,042 |
|
|
— |
|
|
314,600 |
|
|
319,642 |
|
|
2.30 |
|
Total |
$ |
1,000 |
|
|
$ |
119,673 |
|
|
$ |
91,118 |
|
|
$ |
5,407,445 |
|
|
$ |
5,619,236 |
|
|
2.17 |
% |
- 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, |
|
Sep 30, |
|
|
Jun 30, |
|
|
Mar 31, |
|
|
Dec 31, |
|
|
Sep 30, |
|
|
2019 |
|
|
2019 |
|
|
2019 |
|
|
2018 |
|
|
2018 |
|
(In thousands) |
$ |
1,960,898 |
|
|
$ |
893,332 |
|
|
$ |
897,629 |
|
|
$ |
1,042,860 |
|
|
$ |
998,004 |
|
Interest-bearing deposits with banks and cash equivalents
(1) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Investment securities (2) |
3,410,090 |
|
|
3,653,580 |
|
|
3,630,577 |
|
|
3,347,496 |
|
|
3,046,272 |
|
FHLB and
FRB stock |
92,583 |
|
|
105,491 |
|
|
94,882 |
|
|
98,084 |
|
|
88,335 |
|
Liquidity management assets (6) |
5,463,571 |
|
|
4,652,403 |
|
|
4,623,088 |
|
|
4,488,440 |
|
|
4,132,611 |
|
Other
earning assets (3)(6) |
17,809 |
|
|
15,719 |
|
|
13,591 |
|
|
16,204 |
|
|
17,862 |
|
Mortgage
loans held-for-sale |
379,870 |
|
|
281,732 |
|
|
188,190 |
|
|
265,717 |
|
|
380,235 |
|
Loans,
net of unearned income (4)(6) |
25,346,290 |
|
|
24,553,263 |
|
|
23,880,916 |
|
|
23,164,154 |
|
|
22,823,378 |
|
Total earning assets (6) |
31,207,540 |
|
|
29,503,117 |
|
|
28,705,785 |
|
|
27,934,515 |
|
|
27,354,086 |
|
Allowance
for loan losses |
(168,423 |
) |
|
(164,231 |
) |
|
(157,782 |
) |
|
(154,438 |
) |
|
(148,503 |
) |
Cash and
due from banks |
297,475 |
|
|
273,679 |
|
|
283,019 |
|
|
271,403 |
|
|
268,006 |
|
Other
assets |
2,618,000 |
|
|
2,443,204 |
|
|
2,385,149 |
|
|
2,128,407 |
|
|
2,051,520 |
|
Total assets |
$ |
33,954,592 |
|
|
$ |
32,055,769 |
|
|
$ |
31,216,171 |
|
|
$ |
30,179,887 |
|
|
$ |
29,525,109 |
|
|
|
|
|
|
|
|
|
|
|
NOW and
interest bearing demand deposits |
$ |
2,912,961 |
|
|
$ |
2,878,021 |
|
|
$ |
2,803,338 |
|
|
$ |
2,671,283 |
|
|
$ |
2,519,445 |
|
Wealth
management deposits |
2,888,817 |
|
|
2,605,690 |
|
|
2,614,035 |
|
|
2,289,904 |
|
|
2,517,141 |
|
Money
market accounts |
6,956,755 |
|
|
6,095,285 |
|
|
5,915,525 |
|
|
5,632,268 |
|
|
5,369,324 |
|
Savings
accounts |
2,837,039 |
|
|
2,752,828 |
|
|
2,715,422 |
|
|
2,553,133 |
|
|
2,672,077 |
|
Time
deposits |
5,590,228 |
|
|
5,322,384 |
|
|
5,267,796 |
|
|
5,381,029 |
|
|
5,214,637 |
|
Interest-bearing deposits |
21,185,800 |
|
|
19,654,208 |
|
|
19,316,116 |
|
|
18,527,617 |
|
|
18,292,624 |
|
Federal
Home Loan Bank advances |
574,833 |
|
|
869,812 |
|
|
594,335 |
|
|
551,846 |
|
|
429,739 |
|
Other
borrowings |
416,300 |
|
|
419,064 |
|
|
465,571 |
|
|
385,878 |
|
|
268,278 |
|
Subordinated notes |
436,041 |
|
|
220,771 |
|
|
139,217 |
|
|
139,186 |
|
|
139,155 |
|
Junior
subordinated debentures |
253,566 |
|
|
253,566 |
|
|
253,566 |
|
|
253,566 |
|
|
253,566 |
|
Total interest-bearing liabilities |
22,866,540 |
|
|
21,417,421 |
|
|
20,768,805 |
|
|
19,858,093 |
|
|
19,383,362 |
|
Non-interest bearing deposits |
6,776,786 |
|
|
6,487,627 |
|
|
6,444,378 |
|
|
6,542,228 |
|
|
6,461,195 |
|
Other
liabilities |
814,552 |
|
|
736,381 |
|
|
693,910 |
|
|
578,912 |
|
|
548,609 |
|
Equity |
3,496,714 |
|
|
3,414,340 |
|
|
3,309,078 |
|
|
3,200,654 |
|
|
3,131,943 |
|
Total liabilities and shareholders’ equity |
$ |
33,954,592 |
|
|
$ |
32,055,769 |
|
|
$ |
31,216,171 |
|
|
$ |
30,179,887 |
|
|
$ |
29,525,109 |
|
|
|
|
|
|
|
|
|
|
|
Net free funds/contribution (5) |
$ |
8,341,000 |
|
|
$ |
8,085,696 |
|
|
$ |
7,936,980 |
|
|
$ |
8,076,422 |
|
|
$ |
7,970,724 |
|
- 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, |
|
Sep 30, |
|
Jun 30, |
|
Mar 31, |
|
Dec 31, |
|
Sep 30, |
(In thousands) |
2019 |
|
2019 |
|
2019 |
|
2018 |
|
2018 |
Interest income: |
|
|
|
|
|
|
|
|
|
Interest-bearing deposits with banks and cash equivalents |
$ |
10,636 |
|
|
$ |
5,206 |
|
|
$ |
5,300 |
|
|
$ |
5,628 |
|
|
$ |
5,423 |
|
Investment securities |
25,332 |
|
|
28,290 |
|
|
28,521 |
|
|
27,242 |
|
|
22,285 |
|
FHLB and FRB stock |
1,294 |
|
|
1,439 |
|
|
1,355 |
|
|
1,343 |
|
|
1,235 |
|
Liquidity management assets (2) |
37,262 |
|
|
34,935 |
|
|
35,176 |
|
|
34,213 |
|
|
28,943 |
|
Other earning assets (2) |
189 |
|
|
184 |
|
|
165 |
|
|
253 |
|
|
178 |
|
Mortgage loans held-for-sale |
3,478 |
|
|
3,104 |
|
|
2,209 |
|
|
3,409 |
|
|
5,285 |
|
Loans, net of unearned income (2) |
315,255 |
|
|
310,191 |
|
|
298,021 |
|
|
284,291 |
|
|
272,075 |
|
Total interest income |
$ |
356,184 |
|
|
$ |
348,414 |
|
|
$ |
335,571 |
|
|
$ |
322,166 |
|
|
$ |
306,481 |
|
|
|
|
|
|
|
|
|
|
|
Interest expense: |
|
|
|
|
|
|
|
|
|
NOW and interest bearing demand deposits |
$ |
5,291 |
|
|
$ |
5,553 |
|
|
$ |
4,613 |
|
|
$ |
4,007 |
|
|
$ |
2,479 |
|
Wealth management deposits |
9,163 |
|
|
7,091 |
|
|
7,000 |
|
|
7,119 |
|
|
8,287 |
|
Money market accounts |
25,426 |
|
|
21,451 |
|
|
19,460 |
|
|
16,936 |
|
|
13,260 |
|
Savings accounts |
5,622 |
|
|
4,959 |
|
|
4,249 |
|
|
3,096 |
|
|
2,907 |
|
Time deposits |
30,666 |
|
|
27,970 |
|
|
25,654 |
|
|
24,817 |
|
|
21,803 |
|
Interest-bearing deposits |
76,168 |
|
|
67,024 |
|
|
60,976 |
|
|
55,975 |
|
|
48,736 |
|
Federal Home Loan Bank advances |
1,774 |
|
|
4,193 |
|
|
2,450 |
|
|
2,563 |
|
|
1,947 |
|
Other borrowings |
3,466 |
|
|
3,525 |
|
|
3,633 |
|
|
3,199 |
|
|
2,003 |
|
Subordinated notes |
5,470 |
|
|
2,806 |
|
|
1,775 |
|
|
1,788 |
|
|
1,773 |
|
Junior subordinated debentures |
2,897 |
|
|
3,064 |
|
|
3,150 |
|
|
2,983 |
|
|
2,940 |
|
Total interest expense |
$ |
89,775 |
|
|
$ |
80,612 |
|
|
$ |
71,984 |
|
|
$ |
66,508 |
|
|
$ |
57,399 |
|
|
|
|
|
|
|
|
|
|
|
Less: Fully taxable-equivalent adjustment |
(1,557 |
) |
|
(1,600 |
) |
|
(1,601 |
) |
|
(1,570 |
) |
|
(1,519 |
) |
Net interest income (GAAP) (1) |
264,852 |
|
|
266,202 |
|
|
261,986 |
|
|
254,088 |
|
|
247,563 |
|
Fully taxable-equivalent adjustment |
1,557 |
|
|
1,600 |
|
|
1,601 |
|
|
1,570 |
|
|
1,519 |
|
Net interest income, fully taxable-equivalent (non-GAAP) (1) |
$ |
266,409 |
|
|
$ |
267,802 |
|
|
$ |
263,587 |
|
|
$ |
255,658 |
|
|
$ |
249,082 |
|
- 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.
TABLE 7: QUARTERLY NET INTEREST
MARGIN
|
Net Interest Margin for three months ended, |
|
Sep 30,
2019 |
|
Jun 30,
2019 |
|
Mar 31,
2019 |
|
Dec 31,
2018 |
|
Sep 30,
2018 |
Yield earned on: |
|
|
|
|
|
|
|
|
|
Interest-bearing deposits with banks and cash equivalents |
2.15 |
% |
|
2.34 |
% |
|
2.39 |
% |
|
2.14 |
% |
|
2.16 |
% |
Investment securities |
2.95 |
|
|
3.11 |
|
|
3.19 |
|
|
3.23 |
|
|
2.90 |
|
FHLB and
FRB stock |
5.55 |
|
|
5.47 |
|
|
5.79 |
|
|
5.43 |
|
|
5.54 |
|
Liquidity management assets |
2.71 |
|
|
3.01 |
|
|
3.09 |
|
|
3.02 |
|
|
2.78 |
|
Other
earning assets |
4.20 |
|
|
4.68 |
|
|
4.91 |
|
|
6.19 |
|
|
3.95 |
|
Mortgage
loans held-for-sale |
3.63 |
|
|
4.42 |
|
|
4.76 |
|
|
5.09 |
|
|
5.51 |
|
Loans,
net of unearned income |
4.93 |
|
|
5.07 |
|
|
5.06 |
|
|
4.87 |
|
|
4.73 |
|
Total earning assets |
4.53 |
% |
|
4.74 |
% |
|
4.74 |
% |
|
4.58 |
% |
|
4.45 |
% |
|
|
|
|
|
|
|
|
|
|
Rate paid on: |
|
|
|
|
|
|
|
|
|
NOW and
interest bearing demand deposits |
0.72 |
% |
|
0.77 |
% |
|
0.67 |
% |
|
0.60 |
% |
|
0.39 |
% |
Wealth
management deposits |
1.26 |
|
|
1.09 |
|
|
1.09 |
|
|
1.23 |
|
|
1.31 |
|
Money
market accounts |
1.45 |
|
|
1.41 |
|
|
1.33 |
|
|
1.19 |
|
|
0.98 |
|
Savings
accounts |
0.79 |
|
|
0.72 |
|
|
0.63 |
|
|
0.48 |
|
|
0.43 |
|
Time
deposits |
2.18 |
|
|
2.11 |
|
|
1.98 |
|
|
1.83 |
|
|
1.66 |
|
Interest-bearing deposits |
1.43 |
|
|
1.37 |
|
|
1.29 |
|
|
1.20 |
|
|
1.06 |
|
Federal
Home Loan Bank advances |
1.22 |
|
|
1.93 |
|
|
1.67 |
|
|
1.84 |
|
|
1.80 |
|
Other
borrowings |
3.30 |
|
|
3.37 |
|
|
3.16 |
|
|
3.29 |
|
|
2.96 |
|
Subordinated notes |
5.02 |
|
|
5.08 |
|
|
5.10 |
|
|
5.14 |
|
|
5.10 |
|
Junior
subordinated debentures |
4.47 |
|
|
4.78 |
|
|
4.97 |
|
|
4.60 |
|
|
4.54 |
|
Total interest-bearing liabilities |
1.56 |
% |
|
1.51 |
% |
|
1.40 |
% |
|
1.33 |
% |
|
1.17 |
% |
|
|
|
|
|
|
|
|
|
|
Interest
rate spread (1)(3) |
2.97 |
% |
|
3.23 |
% |
|
3.34 |
% |
|
3.25 |
% |
|
3.28 |
% |
Less: Fully taxable-equivalent adjustment |
(0.02 |
) |
|
(0.02 |
) |
|
(0.02 |
) |
|
(0.02 |
) |
|
(0.02 |
) |
Net free
funds/contribution (2) |
0.42 |
|
|
0.41 |
|
|
0.38 |
|
|
0.38 |
|
|
0.33 |
|
Net
interest margin (GAAP) (3) |
3.37 |
% |
|
3.62 |
% |
|
3.70 |
% |
|
3.61 |
% |
|
3.59 |
% |
Fully
taxable-equivalent adjustment |
0.02 |
|
|
0.02 |
|
|
0.02 |
|
|
0.02 |
|
|
0.02 |
|
Net interest margin, fully taxable-equivalent (non-GAAP)
(3) |
3.39 |
% |
|
3.64 |
% |
|
3.72 |
% |
|
3.63 |
% |
|
3.61 |
% |
- 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 nine months ended, |
Interest
for nine months ended, |
Yield/Rate
for nine months ended, |
(Dollars in thousands) |
Sep 30,
2019 |
|
Sep 30,
2018 |
Sep 30,
2019 |
|
Sep 30,
2018 |
Sep 30,
2019 |
|
Sep 30,
2018 |
Interest-bearing deposits with banks and cash equivalents
(1) |
$ |
1,254,534 |
|
|
$ |
836,710 |
|
$ |
21,142 |
|
|
$ |
11,463 |
|
2.26 |
% |
|
1.83 |
% |
Investment securities (2) |
3,563,941 |
|
|
2,943,802 |
|
82,142 |
|
|
62,398 |
|
3.08 |
|
|
2.83 |
|
FHLB and
FRB stock |
97,624 |
|
|
102,893 |
|
4,088 |
|
|
3,988 |
|
5.60 |
|
|
5.18 |
|
Liquidity
management assets (3)(8) |
$ |
4,916,099 |
|
|
$ |
3,883,405 |
|
$ |
107,372 |
|
|
$ |
77,849 |
|
2.92 |
% |
|
2.68 |
% |
Other
earning assets (3)(4)(8) |
15,722 |
|
|
22,190 |
|
538 |
|
|
524 |
|
4.56 |
|
|
3.15 |
|
Mortgage
loans held-for-sale |
283,966 |
|
|
355,491 |
|
8,791 |
|
|
12,329 |
|
4.14 |
|
|
4.64 |
|
Loans,
net of unearned income (3)(5)(8) |
24,598,857 |
|
|
22,276,827 |
|
923,468 |
|
|
763,614 |
|
5.02 |
|
|
4.58 |
|
Total earning assets (8) |
$ |
29,814,644 |
|
|
$ |
26,537,913 |
|
$ |
1,040,169 |
|
|
$ |
854,316 |
|
4.66 |
% |
|
4.30 |
% |
Allowance
for loan losses |
(163,518 |
) |
|
(146,287 |
) |
|
|
|
|
|
|
Cash and
due from banks |
284,779 |
|
|
264,294 |
|
|
|
|
|
|
|
Other
assets |
2,482,970 |
|
|
1,984,460 |
|
|
|
|
|
|
|
Total assets |
$ |
32,418,875 |
|
|
$ |
28,640,380 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NOW and
interest bearing demand deposits |
$ |
2,865,175 |
|
|
$ |
2,357,768 |
|
$ |
15,457 |
|
|
$ |
5,765 |
|
0.72 |
% |
|
0.33 |
% |
Wealth
management deposits |
2,703,853 |
|
|
2,378,468 |
|
23,254 |
|
|
20,721 |
|
1.15 |
|
|
1.16 |
|
Money
market accounts |
6,326,336 |
|
|
4,927,639 |
|
66,337 |
|
|
26,038 |
|
1.40 |
|
|
0.71 |
|
Savings
accounts |
2,768,875 |
|
|
2,728,986 |
|
14,830 |
|
|
8,348 |
|
0.72 |
|
|
0.41 |
|
Time
deposits |
5,394,651 |
|
|
4,701,247 |
|
84,290 |
|
|
49,706 |
|
2.09 |
|
|
1.41 |
|
Interest-bearing deposits |
$ |
20,058,890 |
|
|
$ |
17,094,108 |
|
$ |
204,168 |
|
|
$ |
110,578 |
|
1.36 |
% |
|
0.86 |
% |
Federal
Home Loan Bank advances |
679,589 |
|
|
768,029 |
|
8,417 |
|
|
9,849 |
|
1.66 |
|
|
1.71 |
|
Other
borrowings |
433,465 |
|
|
257,175 |
|
10,624 |
|
|
5,400 |
|
3.28 |
|
|
2.81 |
|
Subordinated notes |
266,430 |
|
|
139,125 |
|
10,051 |
|
|
5,333 |
|
5.03 |
|
|
5.11 |
|
Junior
subordinated debentures |
253,566 |
|
|
253,566 |
|
9,111 |
|
|
8,239 |
|
4.74 |
|
|
4.28 |
|
Total interest-bearing liabilities |
$ |
21,691,940 |
|
|
$ |
18,512,003 |
|
$ |
242,371 |
|
|
$ |
139,399 |
|
1.49 |
% |
|
1.01 |
% |
Non-interest bearing deposits |
6,570,815 |
|
|
6,546,269 |
|
|
|
|
|
|
|
Other
liabilities |
748,722 |
|
|
517,712 |
|
|
|
|
|
|
|
Equity |
3,407,398 |
|
|
3,064,396 |
|
|
|
|
|
|
|
Total liabilities and shareholders’ equity |
$ |
32,418,875 |
|
|
$ |
28,640,380 |
|
|
|
|
|
|
|
Interest
rate spread (6)(8) |
|
|
|
|
|
|
3.17 |
% |
|
3.29 |
% |
Less: Fully taxable-equivalent adjustment |
|
|
|
(4,758 |
) |
|
(4,102 |
) |
(0.02 |
) |
|
(0.02 |
) |
Net free
funds/contribution (7) |
$ |
8,122,704 |
|
|
$ |
8,025,910 |
|
|
|
|
0.41 |
|
|
0.31 |
|
Net
interest income/ margin (GAAP) (8) |
|
|
|
$ |
793,040 |
|
|
$ |
710,815 |
|
3.56 |
% |
|
3.58 |
% |
Fully
taxable-equivalent adjustment |
|
|
|
4,758 |
|
|
4,102 |
|
0.02 |
|
|
0.02 |
|
Net interest income/ margin, fully taxable-equivalent (non-GAAP)
(8) |
|
|
|
$ |
797,798 |
|
|
$ |
714,917 |
|
3.58 |
% |
|
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.
- 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 |
Sep 30, 2019 |
20.7 |
% |
|
10.5 |
% |
|
(11.9 |
)% |
Jun 30,
2019 |
17.3 |
|
|
8.9 |
|
|
(10.2 |
) |
Mar 31,
2019 |
14.9 |
|
|
7.8 |
|
|
(8.5 |
) |
Dec 31,
2018 |
15.6 |
|
|
7.9 |
|
|
(8.6 |
) |
Sep 30, 2018 |
18.1 |
|
|
9.1 |
|
|
(10.0 |
) |
Ramp Scenario |
+200
Basis
Points |
|
+100
Basis
Points |
|
-100
Basis
Points |
Sep 30, 2019 |
10.1 |
% |
|
5.2 |
% |
|
(5.6 |
)% |
Jun 30,
2019 |
8.3 |
|
|
4.3 |
|
|
(4.6 |
) |
Mar 31,
2019 |
6.7 |
|
|
3.5 |
|
|
(3.3 |
) |
Dec 31,
2018 |
7.4 |
|
|
3.8 |
|
|
(3.6 |
) |
Sep 30, 2018 |
8.5 |
|
|
4.3 |
|
|
(4.2 |
) |
TABLE 10: MATURITIES AND SENSITIVITIES
TO CHANGES IN INTEREST RATES
|
Loans repricing or maturity period |
|
|
As of September 30, 2019 |
|
|
|
|
From one to |
|
|
|
|
|
|
(In
thousands) |
One year or less |
|
five years |
|
Over five years |
|
Total |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial |
|
|
|
|
|
|
|
Fixed rate |
206,052 |
|
|
1,213,099 |
|
|
822,338 |
|
|
2,241,489 |
|
Variable rate |
5,947,908 |
|
|
6,067 |
|
|
138 |
|
|
5,954,113 |
|
Total commercial |
$ |
6,153,960 |
|
|
$ |
1,219,166 |
|
|
$ |
822,476 |
|
|
$ |
8,195,602 |
|
Commercial real estate |
|
|
|
|
|
|
|
Fixed rate |
463,155 |
|
|
2,043,088 |
|
|
341,511 |
|
|
2,847,754 |
|
Variable rate |
4,573,350 |
|
|
27,555 |
|
|
8 |
|
|
4,600,913 |
|
Total commercial real estate |
$ |
5,036,505 |
|
|
$ |
2,070,643 |
|
|
$ |
341,519 |
|
|
$ |
7,448,667 |
|
Home
equity |
|
|
|
|
|
|
|
Fixed rate |
23,952 |
|
|
5,642 |
|
|
19,614 |
|
|
49,208 |
|
Variable rate |
462,790 |
|
|
305 |
|
|
— |
|
|
463,095 |
|
Total home equity |
$ |
486,742 |
|
|
$ |
5,947 |
|
|
$ |
19,614 |
|
|
$ |
512,303 |
|
Residential real estate |
|
|
|
|
|
|
|
Fixed rate |
28,980 |
|
|
19,581 |
|
|
302,634 |
|
|
351,195 |
|
Variable rate |
57,238 |
|
|
345,029 |
|
|
465,204 |
|
|
867,471 |
|
Total residential real estate |
$ |
86,218 |
|
|
$ |
364,610 |
|
|
$ |
767,838 |
|
|
$ |
1,218,666 |
|
Premium
finance receivables - commercial |
|
|
|
|
|
|
|
Fixed rate |
3,365,631 |
|
|
84,319 |
|
|
— |
|
|
3,449,950 |
|
Variable rate |
— |
|
|
— |
|
|
— |
|
|
— |
|
Total premium finance receivables - commercial |
$ |
3,365,631 |
|
|
$ |
84,319 |
|
|
$ |
— |
|
|
$ |
3,449,950 |
|
Premium
finance receivables - life insurance |
|
|
|
|
|
|
|
Fixed rate |
12,242 |
|
|
121,600 |
|
|
26,667 |
|
|
160,509 |
|
Variable rate |
4,634,987 |
|
|
— |
|
|
— |
|
|
4,634,987 |
|
Total premium finance receivables - life insurance |
$ |
4,647,229 |
|
|
$ |
121,600 |
|
|
$ |
26,667 |
|
|
$ |
4,795,496 |
|
Consumer
and other |
|
|
|
|
|
|
|
Fixed rate |
51,386 |
|
|
9,802 |
|
|
1,943 |
|
|
63,131 |
|
Variable rate |
26,356 |
|
|
— |
|
|
— |
|
|
26,356 |
|
Total consumer and other |
$ |
77,742 |
|
|
$ |
9,802 |
|
|
$ |
1,943 |
|
|
$ |
89,487 |
|
|
|
|
|
|
|
|
|
Total per
category |
|
|
|
|
|
|
|
Fixed rate |
4,151,398 |
|
|
3,497,131 |
|
|
1,514,707 |
|
|
9,163,236 |
|
Variable rate |
15,702,629 |
|
|
378,956 |
|
|
465,350 |
|
|
16,546,935 |
|
Total loans, net of unearned income |
$ |
19,854,027 |
|
|
$ |
3,876,087 |
|
|
$ |
1,980,057 |
|
|
$ |
25,710,171 |
|
|
|
|
|
|
|
|
|
Variable Rate Loan Pricing by Index: |
|
|
|
|
|
|
|
Prime |
|
|
|
|
|
|
$ |
2,252,517 |
|
One- month LIBOR |
|
|
|
|
|
|
8,439,173 |
|
Three- month LIBOR |
|
|
|
|
|
|
400,567 |
|
Twelve- month LIBOR |
|
|
|
|
|
|
5,222,025 |
|
Other |
|
|
|
|
|
|
232,653 |
|
Total variable rate |
|
|
|
|
|
|
$ |
16,546,935 |
|
|
http://ml.globenewswire.com/Resource/Download/20597901-9267-4190-859a-8e64a47f0076
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 changes as the
Prime rate when the Federal Reserve raises or lowers interest
rates. Specifically, the Company has $8.4 billion of variable
rate loans tied to one-month LIBOR and $5.2 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 |
|
Third Quarter 2019 |
-50 |
bps |
-38 |
bps |
-15 |
bps |
Second
Quarter 2019 |
+0 |
|
-9 |
|
-53 |
|
First
Quarter 2019 |
+0 |
|
-1 |
|
-30 |
|
Fourth
Quarter 2018 |
+25 |
|
+24 |
|
+9 |
|
Third Quarter 2018 |
+25 |
|
+17 |
|
+16 |
|
TABLE 11: ALLOWANCE FOR CREDIT LOSSES
|
|
Three Months Ended |
Nine Months Ended |
|
|
Sep 30, |
|
Jun 30, |
|
Mar 31, |
|
Dec 31, |
|
Sep 30, |
Sep 30, |
|
Sep 30, |
(Dollars in thousands) |
|
2019 |
|
2019 |
|
2019 |
|
2018 |
|
2018 |
2019 |
|
2018 |
Allowance for loan losses at beginning of
period |
|
$ |
160,421 |
|
|
$ |
158,212 |
|
|
$ |
152,770 |
|
|
$ |
149,756 |
|
|
$ |
143,402 |
|
$ |
152,770 |
|
|
$ |
137,905 |
|
Provision for credit losses |
|
10,834 |
|
|
24,580 |
|
|
10,624 |
|
|
10,401 |
|
|
11,042 |
|
46,038 |
|
|
24,431 |
|
Other adjustments |
|
(13 |
) |
|
(11 |
) |
|
(27 |
) |
|
(79 |
) |
|
(18 |
) |
(51 |
) |
|
(102 |
) |
Reclassification (to) from allowance for unfunded
lending-related commitments |
|
(30 |
) |
|
(70 |
) |
|
(16 |
) |
|
(150 |
) |
|
(2 |
) |
(116 |
) |
|
24 |
|
Charge-offs: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial |
|
6,775 |
|
|
17,380 |
|
|
503 |
|
|
6,416 |
|
|
3,219 |
|
24,658 |
|
|
8,116 |
|
Commercial real estate |
|
809 |
|
|
326 |
|
|
3,734 |
|
|
219 |
|
|
208 |
|
4,869 |
|
|
1,176 |
|
Home equity |
|
1,594 |
|
|
690 |
|
|
88 |
|
|
715 |
|
|
561 |
|
2,372 |
|
|
1,530 |
|
Residential real estate |
|
25 |
|
|
287 |
|
|
3 |
|
|
267 |
|
|
337 |
|
315 |
|
|
1,088 |
|
Premium finance receivables - commercial |
|
1,866 |
|
|
5,009 |
|
|
2,210 |
|
|
1,741 |
|
|
2,512 |
|
9,085 |
|
|
10,487 |
|
Premium finance receivables - life insurance |
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
— |
|
|
— |
|
Consumer and other |
|
117 |
|
|
136 |
|
|
102 |
|
|
148 |
|
|
144 |
|
355 |
|
|
732 |
|
Total charge-offs |
|
11,186 |
|
|
23,828 |
|
|
6,640 |
|
|
9,506 |
|
|
6,981 |
|
41,654 |
|
|
23,129 |
|
Recoveries: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial |
|
367 |
|
|
289 |
|
|
318 |
|
|
225 |
|
|
304 |
|
974 |
|
|
1,232 |
|
Commercial real estate |
|
385 |
|
|
247 |
|
|
480 |
|
|
1,364 |
|
|
193 |
|
1,112 |
|
|
4,267 |
|
Home equity |
|
183 |
|
|
68 |
|
|
62 |
|
|
105 |
|
|
142 |
|
313 |
|
|
436 |
|
Residential real estate |
|
203 |
|
|
140 |
|
|
29 |
|
|
47 |
|
|
466 |
|
372 |
|
|
2,028 |
|
Premium finance receivables - commercial |
|
563 |
|
|
734 |
|
|
556 |
|
|
567 |
|
|
1,142 |
|
1,853 |
|
|
2,502 |
|
Premium finance receivables - life insurance |
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
— |
|
|
— |
|
Consumer and other |
|
36 |
|
|
60 |
|
|
56 |
|
|
40 |
|
|
66 |
|
152 |
|
|
162 |
|
Total recoveries |
|
1,737 |
|
|
1,538 |
|
|
1,501 |
|
|
2,348 |
|
|
2,313 |
|
4,776 |
|
|
10,627 |
|
Net charge-offs |
|
(9,449 |
) |
|
(22,290 |
) |
|
(5,139 |
) |
|
(7,158 |
) |
|
(4,668 |
) |
(36,878 |
) |
|
(12,502 |
) |
Allowance for loan losses at period end |
|
$ |
161,763 |
|
|
$ |
160,421 |
|
|
$ |
158,212 |
|
|
$ |
152,770 |
|
|
$ |
149,756 |
|
$ |
161,763 |
|
|
$ |
149,756 |
|
Allowance for unfunded lending-related commitments at
period end |
|
1,510 |
|
|
1,480 |
|
|
1,410 |
|
|
1,394 |
|
|
1,245 |
|
1,510 |
|
|
1,245 |
|
Allowance for credit losses at period end |
|
$ |
163,273 |
|
|
$ |
161,901 |
|
|
$ |
159,622 |
|
|
$ |
154,164 |
|
|
$ |
151,001 |
|
$ |
163,273 |
|
|
$ |
151,001 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Annualized net charge-offs (recoveries) by category as a
percentage of its own respective
category’s average: |
|
|
|
Commercial |
|
0.31 |
% |
|
0.85 |
% |
|
0.01 |
% |
|
0.33 |
% |
|
0.16 |
% |
0.39 |
% |
|
0.13 |
% |
Commercial real estate |
|
0.02 |
|
|
0.00
|
|
|
0.19 |
|
|
(0.07 |
) |
|
0.00
|
|
0.07 |
|
|
(0.06 |
) |
Home equity |
|
1.08 |
|
|
0.47 |
|
|
0.02 |
|
|
0.43 |
|
|
0.28 |
|
0.52 |
|
|
0.24 |
|
Residential real estate |
|
(0.07 |
) |
|
0.06 |
|
|
(0.01 |
) |
|
0.10 |
|
|
(0.06 |
) |
(0.01 |
) |
|
(0.15 |
) |
Premium finance receivables - commercial |
|
0.15 |
|
|
0.55 |
|
|
0.23 |
|
|
0.16 |
|
|
0.19 |
|
0.31 |
|
|
0.39 |
|
Premium finance receivables - life insurance |
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
— |
|
|
— |
|
Consumer and other |
|
0.27 |
|
|
0.30 |
|
|
0.16 |
|
|
0.30 |
|
|
0.23 |
|
0.24 |
|
|
0.58 |
|
Total loans, net of unearned income |
|
0.15 |
% |
|
0.36 |
% |
|
0.09 |
% |
|
0.12 |
% |
|
0.08 |
% |
0.20 |
% |
|
0.08 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net charge-offs as a percentage of the provision for
credit losses |
|
87.22 |
% |
|
90.68 |
% |
|
48.37 |
% |
|
68.82 |
% |
|
42.27 |
% |
80.10 |
% |
|
51.17 |
% |
Loans at period-end |
|
$ |
25,710,171 |
|
|
$ |
25,304,659 |
|
|
$ |
24,214,629 |
|
|
$ |
23,820,691 |
|
|
$ |
23,123,951 |
|
|
|
|
Allowance for loan losses as a percentage of loans at
period end |
|
0.63 |
% |
|
0.63 |
% |
|
0.65 |
% |
|
0.64 |
% |
|
0.65 |
% |
|
|
|
Allowance for credit losses as a percentage of loans at
period end |
|
0.64 |
|
|
0.64 |
|
|
0.66 |
|
|
0.65 |
|
|
0.65 |
|
|
|
|
Provision for credit losses by component for
the periods presented:
|
Three Months Ended |
Nine Months Ended |
|
Sep 30, |
|
Jun 30, |
|
Mar 31, |
|
Dec 31, |
|
Sep 30, |
Sep 30, |
|
Sep 30, |
(Dollars
in thousands) |
2019 |
|
2019 |
|
2019 |
|
2018 |
|
2018 |
2019 |
|
2018 |
Provision for loan losses |
$ |
10,804 |
|
|
$ |
24,510 |
|
|
$ |
10,608 |
|
|
$ |
10,251 |
|
|
$ |
11,040 |
|
$ |
45,922 |
|
|
$ |
24,455 |
|
Provision
for unfunded lending-related commitments |
30 |
|
|
70 |
|
|
16 |
|
|
150 |
|
|
2 |
|
116 |
|
|
(24 |
) |
Provision for credit losses |
$ |
10,834 |
|
|
$ |
24,580 |
|
|
$ |
10,624 |
|
|
$ |
10,401 |
|
|
$ |
11,042 |
|
$ |
46,038 |
|
|
$ |
24,431 |
|
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
September 30, 2019 and June 30, 2019.
|
As of September 30, 2019 |
As of June 30, 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 |
$ |
4,368,580 |
|
|
$ |
47,983 |
|
|
1.10 |
% |
$ |
4,529,952 |
|
|
$ |
49,451 |
|
|
1.09 |
% |
Asset-based lending |
1,043,384 |
|
|
8,445 |
|
|
0.81 |
|
1,066,231 |
|
|
9,335 |
|
|
0.88 |
|
Tax exempt |
503,495 |
|
|
2,957 |
|
|
0.59 |
|
489,524 |
|
|
2,808 |
|
|
0.57 |
|
Leases |
749,135 |
|
|
2,069 |
|
|
0.28 |
|
674,251 |
|
|
1,879 |
|
|
0.28 |
|
Commercial real estate: (1) |
|
|
|
|
|
|
|
|
|
|
Residential construction |
35,662 |
|
|
625 |
|
|
1.75 |
|
39,633 |
|
|
797 |
|
|
2.01 |
|
Commercial construction |
810,919 |
|
|
8,757 |
|
|
1.08 |
|
792,782 |
|
|
8,523 |
|
|
1.08 |
|
Land |
168,092 |
|
|
4,801 |
|
|
2.86 |
|
138,255 |
|
|
4,193 |
|
|
3.03 |
|
Office |
964,557 |
|
|
10,066 |
|
|
1.04 |
|
925,150 |
|
|
9,778 |
|
|
1.06 |
|
Industrial |
972,859 |
|
|
7,015 |
|
|
0.72 |
|
921,116 |
|
|
6,589 |
|
|
0.72 |
|
Retail |
960,762 |
|
|
6,718 |
|
|
0.70 |
|
930,594 |
|
|
6,515 |
|
|
0.70 |
|
Multi-family |
1,239,217 |
|
|
12,504 |
|
|
1.01 |
|
1,184,025 |
|
|
11,983 |
|
|
1.01 |
|
Mixed use and other |
1,918,510 |
|
|
14,362 |
|
|
0.75 |
|
1,944,182 |
|
|
14,800 |
|
|
0.76 |
|
Home
equity (1) |
479,627 |
|
|
3,702 |
|
|
0.77 |
|
489,813 |
|
|
3,595 |
|
|
0.73 |
|
Residential real estate (1) |
1,191,153 |
|
|
9,314 |
|
|
0.78 |
|
1,089,496 |
|
|
8,042 |
|
|
0.74 |
|
Total core loan portfolio |
$ |
15,405,952 |
|
|
$ |
139,318 |
|
|
0.90 |
% |
$ |
15,215,004 |
|
|
$ |
138,288 |
|
|
0.91 |
% |
Commercial: |
|
|
|
|
|
|
|
|
|
|
Franchise |
$ |
881,287 |
|
|
$ |
8,251 |
|
|
0.94 |
% |
$ |
891,481 |
|
|
$ |
8,255 |
|
|
0.93 |
% |
Mortgage warehouse lines of credit |
314,697 |
|
|
2,481 |
|
|
0.79 |
|
275,170 |
|
|
2,195 |
|
|
0.80 |
|
Community Advantage - homeowner associations |
202,724 |
|
|
507 |
|
|
0.25 |
|
192,056 |
|
|
481 |
|
|
0.25 |
|
Aircraft |
11,112 |
|
|
9 |
|
|
0.08 |
|
11,305 |
|
|
9 |
|
|
0.08 |
|
Purchased commercial loans (2) |
121,188 |
|
|
425 |
|
|
0.35 |
|
140,804 |
|
|
480 |
|
|
0.34 |
|
Purchased
commercial real estate (2) |
378,089 |
|
|
90 |
|
|
0.02 |
|
400,507 |
|
|
92 |
|
|
0.02 |
|
Purchased
home equity (2) |
32,676 |
|
|
18 |
|
|
0.06 |
|
37,557 |
|
|
36 |
|
|
0.10 |
|
Purchased
residential real estate (2) |
27,513 |
|
|
97 |
|
|
0.35 |
|
28,682 |
|
|
104 |
|
|
0.36 |
|
Premium
finance receivables |
|
|
|
|
|
|
|
|
|
|
U.S. commercial insurance loans |
3,016,644 |
|
|
7,207 |
|
|
0.24 |
|
2,914,625 |
|
|
6,789 |
|
|
0.23 |
|
Canada commercial insurance loans (2) |
433,306 |
|
|
648 |
|
|
0.15 |
|
453,798 |
|
|
725 |
|
|
0.16 |
|
Life insurance loans (1) |
4,552,555 |
|
|
1,511 |
|
|
0.03 |
|
4,487,921 |
|
|
1,426 |
|
|
0.03 |
|
Purchased life insurance loans (2) |
242,941 |
|
|
— |
|
|
— |
|
146,557 |
|
|
— |
|
|
— |
|
Consumer
and other (1) |
86,437 |
|
|
1,199 |
|
|
1.40 |
|
105,966 |
|
|
1,538 |
|
|
1.45 |
|
Purchased
consumer and other (2) |
3,050 |
|
|
2 |
|
|
0.07 |
|
3,226 |
|
|
3 |
|
|
0.09 |
|
Total consumer, niche and purchased loan
portfolio |
$ |
10,304,219 |
|
|
$ |
22,445 |
|
|
0.22 |
% |
$ |
10,089,655 |
|
|
$ |
22,133 |
|
|
0.22 |
% |
Total loans, net of unearned income |
$ |
25,710,171 |
|
|
$ |
161,763 |
|
|
0.63 |
% |
$ |
25,304,659 |
|
|
$ |
160,421 |
|
|
0.63 |
% |
- 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 September 30, 2019 |
|
|
|
and still |
|
days past |
|
days past |
|
|
|
|
(Dollars in thousands) |
|
Nonaccrual |
|
accruing |
|
due |
|
due |
|
Current |
|
Total Loans |
Loan Balances: |
Commercial (1) |
|
$ |
43,931 |
|
|
$ |
382 |
|
|
$ |
12,860 |
|
|
$ |
51,487 |
|
|
$ |
8,086,942 |
|
|
$ |
8,195,602 |
|
Commercial real estate (1) |
|
21,557 |
|
|
4,992 |
|
|
9,629 |
|
|
33,098 |
|
|
7,379,391 |
|
|
7,448,667 |
|
Home equity |
|
7,920 |
|
|
— |
|
|
95 |
|
|
3,100 |
|
|
501,188 |
|
|
512,303 |
|
Residential real estate (1) |
|
13,447 |
|
|
3,244 |
|
|
1,868 |
|
|
1,433 |
|
|
1,198,674 |
|
|
1,218,666 |
|
Premium finance receivables - commercial |
|
15,950 |
|
|
10,612 |
|
|
8,853 |
|
|
16,972 |
|
|
3,397,563 |
|
|
3,449,950 |
|
Premium finance receivables - life insurance (1) |
|
590 |
|
|
— |
|
|
17,753 |
|
|
27,795 |
|
|
4,749,358 |
|
|
4,795,496 |
|
Consumer and other (1) |
|
224 |
|
|
117 |
|
|
55 |
|
|
272 |
|
|
88,819 |
|
|
89,487 |
|
Total loans, net of unearned income |
|
$ |
103,619 |
|
|
$ |
19,347 |
|
|
$ |
51,113 |
|
|
$ |
134,157 |
|
|
$ |
25,401,935 |
|
|
$ |
25,710,171 |
|
Aging as a % of Loan Balance: |
|
|
|
|
|
|
|
|
|
|
|
|
Commercial (1) |
|
0.5 |
% |
|
0.0 |
% |
|
0.2 |
% |
|
0.6 |
% |
|
98.7 |
% |
|
100.0 |
% |
Commercial real estate (1) |
|
0.3 |
|
|
0.1 |
|
|
0.1 |
|
|
0.4 |
|
|
99.1 |
|
|
100.0 |
|
Home equity |
|
1.6 |
|
|
— |
|
|
0.0 |
|
|
0.6 |
|
|
97.8 |
|
|
100.0 |
|
Residential real estate (1) |
|
1.1 |
|
|
0.3 |
|
|
0.1 |
|
|
0.1 |
|
|
98.4 |
|
|
100.0 |
|
Premium finance receivables - commercial |
|
0.5 |
|
|
0.3 |
|
|
0.2 |
|
|
0.5 |
|
|
98.5 |
|
|
100.0 |
|
Premium finance receivables - life insurance (1) |
|
0.0 |
|
|
— |
|
|
0.4 |
|
|
0.6 |
|
|
99.0 |
|
|
100.0 |
|
Consumer and other (1) |
|
0.2 |
|
|
0.1 |
|
|
0.1 |
|
|
0.3 |
|
|
99.3 |
|
|
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 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 |
% |
|
0.0 |
% |
|
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) |
|
0.0 |
|
|
— |
|
|
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.
TABLE 14: NON-PERFORMING ASSETS, EXCLUDING PCI LOANS,
AND TROUBLED DEBT RESTRUCTURINGS ("TDRs")
|
Sep 30, |
|
Jun 30, |
|
Mar 31, |
|
Dec 31, |
|
Sep 30, |
(Dollars in thousands) |
2019 |
|
2019 |
|
2019 |
|
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 |
10,612 |
|
|
6,940 |
|
|
6,558 |
|
|
7,799 |
|
|
7,028 |
|
Premium finance receivables - life insurance |
— |
|
|
— |
|
|
168 |
|
|
— |
|
|
— |
|
Consumer and other |
53 |
|
|
172 |
|
|
218 |
|
|
109 |
|
|
233 |
|
Total loans past due greater than 90 days and still accruing |
10,665 |
|
|
7,600 |
|
|
6,974 |
|
|
7,908 |
|
|
12,383 |
|
Non-accrual loans
(2): |
|
|
|
|
|
|
|
|
|
Commercial |
43,931 |
|
|
47,604 |
|
|
55,792 |
|
|
50,984 |
|
|
58,587 |
|
Commercial real estate |
21,557 |
|
|
20,875 |
|
|
15,933 |
|
|
19,129 |
|
|
17,515 |
|
Home equity |
7,920 |
|
|
8,489 |
|
|
7,885 |
|
|
7,147 |
|
|
8,523 |
|
Residential real estate |
13,447 |
|
|
14,236 |
|
|
15,879 |
|
|
16,383 |
|
|
16,062 |
|
Premium finance receivables - commercial |
15,950 |
|
|
13,833 |
|
|
14,797 |
|
|
11,335 |
|
|
13,802 |
|
Premium finance receivables - life insurance |
590 |
|
|
590 |
|
|
— |
|
|
— |
|
|
— |
|
Consumer and other |
224 |
|
|
220 |
|
|
326 |
|
|
348 |
|
|
355 |
|
Total non-accrual loans |
103,619 |
|
|
105,847 |
|
|
110,612 |
|
|
105,326 |
|
|
114,844 |
|
Total non-performing loans: |
|
|
|
|
|
|
|
|
|
Commercial |
43,931 |
|
|
48,092 |
|
|
55,792 |
|
|
50,984 |
|
|
63,709 |
|
Commercial real estate |
21,557 |
|
|
20,875 |
|
|
15,933 |
|
|
19,129 |
|
|
17,515 |
|
Home equity |
7,920 |
|
|
8,489 |
|
|
7,885 |
|
|
7,147 |
|
|
8,523 |
|
Residential real estate |
13,447 |
|
|
14,236 |
|
|
15,909 |
|
|
16,383 |
|
|
16,062 |
|
Premium finance receivables - commercial |
26,562 |
|
|
20,773 |
|
|
21,355 |
|
|
19,134 |
|
|
20,830 |
|
Premium finance receivables - life insurance |
590 |
|
|
590 |
|
|
168 |
|
|
— |
|
|
— |
|
Consumer and other |
277 |
|
|
392 |
|
|
544 |
|
|
457 |
|
|
588 |
|
Total non-performing loans |
$ |
114,284 |
|
|
$ |
113,447 |
|
|
$ |
117,586 |
|
|
$ |
113,234 |
|
|
$ |
127,227 |
|
Other real estate owned |
8,584 |
|
|
9,920 |
|
|
9,154 |
|
|
11,968 |
|
|
14,924 |
|
Other real estate owned - from acquisitions |
8,898 |
|
|
9,917 |
|
|
12,366 |
|
|
12,852 |
|
|
13,379 |
|
Other repossessed assets |
257 |
|
|
263 |
|
|
270 |
|
|
280 |
|
|
294 |
|
Total non-performing assets |
$ |
132,023 |
|
|
$ |
133,547 |
|
|
$ |
139,376 |
|
|
$ |
138,334 |
|
|
$ |
155,824 |
|
TDRs performing under the contractual terms of the loan
agreement |
$ |
45,178 |
|
|
$ |
45,862 |
|
|
$ |
48,305 |
|
|
$ |
33,281 |
|
|
$ |
31,487 |
|
Total non-performing loans by category as a percent of its
own respective category’s period-end balance: |
|
|
|
|
|
|
|
|
|
Commercial |
0.54 |
% |
|
0.58 |
% |
|
0.70 |
% |
|
0.65 |
% |
|
0.85 |
% |
Commercial real estate |
0.29 |
|
|
0.29 |
|
|
0.23 |
|
|
0.28 |
|
|
0.26 |
|
Home equity |
1.55 |
|
|
1.61 |
|
|
1.49 |
|
|
1.29 |
|
|
1.47 |
|
Residential real estate |
1.10 |
|
|
1.27 |
|
|
1.51 |
|
|
1.63 |
|
|
1.74 |
|
Premium finance receivables - commercial |
0.77 |
|
|
0.62 |
|
|
0.71 |
|
|
0.67 |
|
|
0.72 |
|
Premium finance receivables - life insurance |
0.01 |
|
|
0.01 |
|
|
0.00 |
|
|
— |
|
|
— |
|
Consumer and other |
0.31 |
|
|
0.36 |
|
|
0.45 |
|
|
0.38 |
|
|
0.51 |
|
Total loans, net of unearned income |
0.44 |
% |
|
0.45 |
% |
|
0.49 |
% |
|
0.48 |
% |
|
0.55 |
% |
Total non-performing assets as a percentage of total
assets |
0.38 |
% |
|
0.40 |
% |
|
0.43 |
% |
|
0.44 |
% |
|
0.52 |
% |
Allowance for loan losses as a percentage of total
non-performing loans |
141.54 |
% |
|
141.41 |
% |
|
134.55 |
% |
|
134.92 |
% |
|
117.71 |
% |
- Loans past due greater than 90 days and still accruing
interest included TDRs totaling $5.1 million as of
September 30, 2018. As of September 30, 2019,
June 30, 2019, March 31, 2019 and December 31, 2018, no TDRs
were past due greater than 90 days and still accruing
interest.
- Non-accrual loans included TDRs totaling $21.1 million,
$30.1 million, $40.1 million, $32.8 million and $34.7 million as of
September 30, 2019, June 30, 2019, March 31, 2019,
December 31, 2018 and September 30, 2018, respectively.
Non-performing Loans Rollforward, excluding PCI
loans:
|
Three Months Ended |
Nine Months Ended |
|
Sep 30, |
|
Jun 30, |
|
Mar 31, |
|
Dec 31, |
|
Sep 30, |
Sep 30, |
|
Sep 30, |
(Dollars in thousands) |
2019 |
|
2019 |
|
2019 |
|
2018 |
|
2018 |
2019 |
|
2018 |
Balance at beginning of period |
$ |
113,447 |
|
|
$ |
117,586 |
|
|
$ |
113,234 |
|
|
$ |
127,227 |
|
|
$ |
83,282 |
|
$ |
113,234 |
|
|
$ |
90,162 |
|
Additions, net |
20,781 |
|
|
20,567 |
|
|
24,030 |
|
|
18,553 |
|
|
56,864 |
|
65,378 |
|
|
73,875 |
|
Return to performing status |
(407 |
) |
|
(47 |
) |
|
(14,077 |
) |
|
(6,155 |
) |
|
(3,782 |
) |
(14,531 |
) |
|
(8,294 |
) |
Payments received |
(16,326 |
) |
|
(5,438 |
) |
|
(4,024 |
) |
|
(16,437 |
) |
|
(6,212 |
) |
(25,788 |
) |
|
(13,370 |
) |
Transfer to OREO and other repossessed assets |
(1,493 |
) |
|
(1,486 |
) |
|
(82 |
) |
|
(970 |
) |
|
(659 |
) |
(3,061 |
) |
|
(6,168 |
) |
Charge-offs |
(6,984 |
) |
|
(16,817 |
) |
|
(3,992 |
) |
|
(7,161 |
) |
|
(3,108 |
) |
(27,793 |
) |
|
(8,631 |
) |
Net change for niche loans (1) |
5,266 |
|
|
(918 |
) |
|
2,497 |
|
|
(1,823 |
) |
|
842 |
|
6,845 |
|
|
(347 |
) |
Balance at end of period |
$ |
114,284 |
|
|
$ |
113,447 |
|
|
$ |
117,586 |
|
|
$ |
113,234 |
|
|
$ |
127,227 |
|
$ |
114,284 |
|
|
$ |
127,227 |
|
- This includes activity for premium finance receivables and
indirect consumer loans.
TDRs
|
Sep 30, |
|
Jun 30, |
|
Mar 31, |
|
Dec 31, |
|
Sep 30, |
(Dollars in thousands) |
2019 |
|
2019 |
|
2019 |
|
2018 |
|
2018 |
Accruing TDRs: |
|
|
|
|
|
|
|
|
|
Commercial |
$ |
14,099 |
|
|
$ |
15,923 |
|
|
$ |
19,650 |
|
|
$ |
8,545 |
|
|
$ |
8,794 |
|
Commercial real estate |
10,370 |
|
|
12,646 |
|
|
14,123 |
|
|
13,895 |
|
|
14,160 |
|
Residential real estate and other |
20,709 |
|
|
17,293 |
|
|
14,532 |
|
|
10,841 |
|
|
8,533 |
|
Total accrual |
$ |
45,178 |
|
|
$ |
45,862 |
|
|
$ |
48,305 |
|
|
$ |
33,281 |
|
|
$ |
31,487 |
|
Non-accrual TDRs: (1) |
|
|
|
|
|
|
|
|
|
Commercial |
$ |
7,451 |
|
|
$ |
21,850 |
|
|
$ |
34,390 |
|
|
$ |
27,774 |
|
|
$ |
30,452 |
|
Commercial real estate |
7,673 |
|
|
2,854 |
|
|
1,517 |
|
|
1,552 |
|
|
1,326 |
|
Residential real estate and other |
6,006 |
|
|
5,435 |
|
|
4,150 |
|
|
3,495 |
|
|
2,954 |
|
Total non-accrual |
$ |
21,130 |
|
|
$ |
30,139 |
|
|
$ |
40,057 |
|
|
$ |
32,821 |
|
|
$ |
34,732 |
|
Total TDRs: |
|
|
|
|
|
|
|
|
|
Commercial |
$ |
21,550 |
|
|
$ |
37,773 |
|
|
$ |
54,040 |
|
|
$ |
36,319 |
|
|
$ |
39,246 |
|
Commercial real estate |
18,043 |
|
|
15,500 |
|
|
15,640 |
|
|
15,447 |
|
|
15,486 |
|
Residential real estate and other |
26,715 |
|
|
22,728 |
|
|
18,682 |
|
|
14,336 |
|
|
11,487 |
|
Total TDRs |
$ |
66,308 |
|
|
$ |
76,001 |
|
|
$ |
88,362 |
|
|
$ |
66,102 |
|
|
$ |
66,219 |
|
- Included in total non-performing loans.
Other Real Estate Owned
|
Three Months Ended |
|
Sep 30, |
|
Jun 30, |
|
Mar 31, |
|
Dec 31, |
|
Sep 30, |
(Dollars in thousands) |
2019 |
|
2019 |
|
2019 |
|
2018 |
|
2018 |
Balance at beginning of period |
$ |
19,837 |
|
|
$ |
21,520 |
|
|
$ |
24,820 |
|
|
$ |
28,303 |
|
|
$ |
35,331 |
|
Disposals/resolved |
(4,501 |
) |
|
(2,397 |
) |
|
(2,758 |
) |
|
(3,848 |
) |
|
(7,291 |
) |
Transfers in at fair value, less costs to sell |
3,008 |
|
|
1,746 |
|
|
32 |
|
|
997 |
|
|
349 |
|
Additions from acquisition |
— |
|
|
— |
|
|
— |
|
|
160 |
|
|
1,418 |
|
Fair value adjustments |
(862 |
) |
|
(1,032 |
) |
|
(574 |
) |
|
(792 |
) |
|
(1,504 |
) |
Balance at end of period |
$ |
17,482 |
|
|
$ |
19,837 |
|
|
$ |
21,520 |
|
|
$ |
24,820 |
|
|
$ |
28,303 |
|
|
|
|
|
|
|
|
|
|
|
|
Period End |
|
Sep 30, |
|
Jun 30, |
|
Mar 31, |
|
Dec 31, |
|
Sep 30, |
Balance by Property Type: |
2019 |
|
2019 |
|
2019 |
|
2018 |
|
2018 |
Residential real estate |
$ |
1,250 |
|
|
$ |
1,312 |
|
|
$ |
3,037 |
|
|
$ |
3,446 |
|
|
$ |
3,735 |
|
Residential real estate development |
1,282 |
|
|
1,282 |
|
|
1,139 |
|
|
1,426 |
|
|
1,952 |
|
Commercial real estate |
14,950 |
|
|
17,243 |
|
|
17,344 |
|
|
19,948 |
|
|
22,616 |
|
Total |
$ |
17,482 |
|
|
$ |
19,837 |
|
|
$ |
21,520 |
|
|
$ |
24,820 |
|
|
$ |
28,303 |
|
TABLE 15: NON-INTEREST INCOME
|
Three Months Ended |
|
Q3 2019 compared to |
|
Q3 2019 compared to |
|
Sep 30, |
|
Jun 30, |
|
Mar 31, |
|
Dec 31, |
|
Sep 30, |
|
Q2 2019 |
|
Q3 2018 |
(Dollars in thousands) |
2019 |
|
2019 |
|
2019 |
|
2018 |
|
2018 |
|
$ Change |
|
% Change |
|
$ Change |
|
% Change |
Brokerage |
$ |
4,686 |
|
|
$ |
4,764 |
|
|
$ |
4,516 |
|
|
$ |
4,997 |
|
|
$ |
5,579 |
|
|
$ |
(78 |
) |
|
(2 |
)% |
|
$ |
(893 |
) |
|
(16 |
)% |
Trust and asset management |
19,313 |
|
|
19,375 |
|
|
19,461 |
|
|
17,729 |
|
|
17,055 |
|
|
(62 |
) |
|
— |
|
|
2,258 |
|
|
13 |
|
Total wealth management |
23,999 |
|
|
24,139 |
|
|
23,977 |
|
|
22,726 |
|
|
22,634 |
|
|
(140 |
) |
|
(1 |
) |
|
1,365 |
|
|
6 |
|
Mortgage banking |
50,864 |
|
|
37,411 |
|
|
18,158 |
|
|
24,182 |
|
|
42,014 |
|
|
13,453 |
|
|
36 |
|
|
8,850 |
|
|
21 |
|
Service charges on deposit accounts |
9,972 |
|
|
9,277 |
|
|
8,848 |
|
|
9,065 |
|
|
9,331 |
|
|
695 |
|
|
7 |
|
|
641 |
|
|
7 |
|
Gains (losses) on investment securities, net |
710 |
|
|
864 |
|
|
1,364 |
|
|
(2,649 |
) |
|
90 |
|
|
(154 |
) |
|
(18 |
) |
|
620 |
|
|
NM |
Fees from covered call options |
— |
|
|
643 |
|
|
1,784 |
|
|
626 |
|
|
627 |
|
|
(643 |
) |
|
(100 |
) |
|
(627 |
) |
|
(100 |
) |
Trading gains (losses), net |
11 |
|
|
(44 |
) |
|
(171 |
) |
|
(155 |
) |
|
(61 |
) |
|
55 |
|
|
(125 |
) |
|
72 |
|
|
NM |
Operating lease income, net |
12,025 |
|
|
11,733 |
|
|
10,796 |
|
|
10,882 |
|
|
9,132 |
|
|
292 |
|
|
2 |
|
|
2,893 |
|
|
32 |
|
Other: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest rate swap fees |
4,811 |
|
|
3,224 |
|
|
2,831 |
|
|
2,602 |
|
|
2,359 |
|
|
1,587 |
|
|
49 |
|
|
2,452 |
|
|
104 |
|
BOLI |
830 |
|
|
1,149 |
|
|
1,591 |
|
|
(466 |
) |
|
3,190 |
|
|
(319 |
) |
|
(28 |
) |
|
(2,360 |
) |
|
NM |
Administrative services |
1,086 |
|
|
1,009 |
|
|
1,030 |
|
|
1,260 |
|
|
1,099 |
|
|
77 |
|
|
8 |
|
|
(13 |
) |
|
(1 |
) |
Foreign currency remeasurement (losses) gains |
(55 |
) |
|
113 |
|
|
464 |
|
|
(1,149 |
) |
|
348 |
|
|
(168 |
) |
|
(149 |
) |
|
(403 |
) |
|
NM |
Early pay-offs of capital leases |
6 |
|
|
— |
|
|
5 |
|
|
3 |
|
|
11 |
|
|
6 |
|
|
NM |
|
(5 |
) |
|
(45 |
) |
Miscellaneous |
10,878 |
|
|
8,640 |
|
|
10,980 |
|
|
8,381 |
|
|
9,156 |
|
|
2,238 |
|
|
26 |
|
|
1,722 |
|
|
19 |
|
Total Other |
17,556 |
|
|
14,135 |
|
|
16,901 |
|
|
10,631 |
|
|
16,163 |
|
|
3,421 |
|
|
24 |
|
|
1,393 |
|
|
9 |
|
Total Non-Interest Income |
$ |
115,137 |
|
|
$ |
98,158 |
|
|
$ |
81,657 |
|
|
$ |
75,308 |
|
|
$ |
99,930 |
|
|
$ |
16,979 |
|
|
17 |
% |
|
$ |
15,207 |
|
|
15 |
% |
NM - Not meaningful.
|
|
Nine Months Ended |
|
|
|
|
|
|
Sep 30, |
|
Sep 30, |
|
$ |
|
% |
(Dollars in thousands) |
|
2019 |
|
2018 |
|
Change |
|
Change |
Brokerage |
|
$ |
13,966 |
|
|
$ |
17,394 |
|
|
$ |
(3,428 |
) |
|
(20 |
)% |
Trust and asset management |
|
58,149 |
|
|
50,843 |
|
|
7,306 |
|
|
14 |
|
Total wealth management |
|
72,115 |
|
|
68,237 |
|
|
3,878 |
|
|
6 |
|
Mortgage banking |
|
106,433 |
|
|
112,808 |
|
|
(6,375 |
) |
|
(6 |
) |
Service charges on deposit accounts |
|
28,097 |
|
|
27,339 |
|
|
758 |
|
|
3 |
|
Gains on investment securities, net |
|
2,938 |
|
|
(249 |
) |
|
3,187 |
|
|
NM |
Fees from covered call options |
|
2,427 |
|
|
2,893 |
|
|
(466 |
) |
|
(16 |
) |
Trading (losses) gains, net |
|
(204 |
) |
|
166 |
|
|
(370 |
) |
|
NM |
Operating lease income, net |
|
34,554 |
|
|
27,569 |
|
|
6,985 |
|
|
25 |
|
Other: |
|
|
|
|
|
|
|
|
Interest rate swap fees |
|
10,866 |
|
|
8,425 |
|
|
2,441 |
|
|
29 |
|
BOLI |
|
3,570 |
|
|
5,448 |
|
|
(1,878 |
) |
|
(34 |
) |
Administrative services |
|
3,125 |
|
|
3,365 |
|
|
(240 |
) |
|
(7 |
) |
Foreign currency remeasurement gain (loss) |
|
522 |
|
|
(524 |
) |
|
1,046 |
|
|
NM |
Early pay-offs of leases |
|
11 |
|
|
598 |
|
|
(587 |
) |
|
(98 |
) |
Miscellaneous |
|
30,498 |
|
|
24,767 |
|
|
5,731 |
|
|
23 |
|
Total Other |
|
48,592 |
|
|
42,079 |
|
|
6,513 |
|
|
15 |
|
Total Non-Interest Income |
|
$ |
294,952 |
|
|
$ |
280,842 |
|
|
$ |
14,110 |
|
|
5 |
% |
NM - Not meaningful.
TABLE 16: MORTGAGE BANKING
REVENUE
|
Three Months Ended |
Nine Months Ended |
(Dollars in thousands) |
Sep 30,
2019 |
|
Jun 30,
2019 |
|
Mar 31,
2019 |
|
Dec 31,
2019 |
|
Sep 30,
2018 |
Sep 30,
2019 |
|
Sep 30,
2018 |
Originations: |
|
|
|
|
|
|
|
|
|
|
|
|
Retail originations |
$ |
913,631 |
|
|
$ |
669,510 |
|
|
$ |
365,602 |
|
|
$ |
463,196 |
|
|
$ |
642,213 |
|
$ |
1,948,743 |
|
|
$ |
1,949,036 |
|
Correspondent originations |
50,639 |
|
|
182,966 |
|
|
148,100 |
|
|
289,101 |
|
|
310,446 |
|
381,705 |
|
|
559,896 |
|
Veterans First originations |
456,005 |
|
|
301,324 |
|
|
164,762 |
|
|
175,483 |
|
|
199,774 |
|
922,091 |
|
|
518,726 |
|
Total originations for sale (A) |
$ |
1,420,275 |
|
|
$ |
1,153,800 |
|
|
$ |
678,464 |
|
|
$ |
927,780 |
|
|
$ |
1,152,433 |
|
$ |
3,252,539 |
|
|
$ |
3,027,658 |
|
Originations for investment |
154,897 |
|
|
106,237 |
|
|
93,689 |
|
|
93,275 |
|
|
54,172 |
|
354,823 |
|
|
165,655 |
|
Total originations |
$ |
1,575,172 |
|
|
$ |
1,260,037 |
|
|
$ |
772,153 |
|
|
$ |
1,021,055 |
|
|
$ |
1,206,605 |
|
$ |
3,607,362 |
|
|
$ |
3,193,313 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Purchases as a percentage of originations for sale |
48 |
% |
|
63 |
% |
|
67 |
% |
|
71 |
% |
|
76 |
% |
57 |
% |
|
77 |
% |
Refinances as a percentage of originations for sale |
52 |
|
|
37 |
|
|
33 |
|
|
29 |
|
|
24 |
|
43 |
|
|
23 |
|
Total |
100 |
% |
|
100 |
% |
|
100 |
% |
|
100 |
% |
|
100 |
% |
100 |
% |
|
100 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
Production Margin: |
|
|
|
|
|
|
|
|
|
|
|
|
Production revenue (B) (1) |
$ |
42,713 |
|
|
$ |
29,895 |
|
|
$ |
16,606 |
|
|
$ |
18,657 |
|
|
$ |
25,253 |
|
$ |
89,214 |
|
|
$ |
73,593 |
|
Production margin (B / A) |
3.01 |
% |
|
2.59 |
% |
|
2.45 |
% |
|
2.01 |
% |
|
2.19 |
% |
2.74 |
% |
|
2.43 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
Mortgage Servicing: |
|
|
|
|
|
|
|
|
|
|
|
|
Loans serviced for others (C) |
$ |
7,901,045 |
|
|
$ |
7,515,186 |
|
|
$ |
7,014,269 |
|
|
$ |
6,545,870 |
|
|
$ |
5,904,300 |
|
|
|
|
MSRs, at fair value (D) |
75,585 |
|
|
72,850 |
|
|
71,022 |
|
|
75,183 |
|
|
74,530 |
|
|
|
|
Percentage of MSRs to loans serviced for others (D / C) |
0.96 |
% |
|
0.97 |
% |
|
1.01 |
% |
|
1.15 |
% |
|
1.26 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Components of Mortgage Banking Revenue: |
|
|
|
Production revenue |
$ |
42,713 |
|
|
$ |
29,895 |
|
|
$ |
16,606 |
|
|
$ |
18,657 |
|
|
$ |
25,253 |
|
$ |
89,214 |
|
|
$ |
73,593 |
|
MSR - current period capitalization |
14,029 |
|
|
9,802 |
|
|
6,580 |
|
|
9,683 |
|
|
11,330 |
|
30,411 |
|
|
23,378 |
|
MSR - collection of expected cash flows - paydowns |
(456 |
) |
|
(457 |
) |
|
(505 |
) |
|
(496 |
) |
|
(689 |
) |
(1,418 |
) |
|
(1,771 |
) |
MSR - collection of expected cash flows - payoffs |
(6,781 |
) |
|
(3,619 |
) |
|
(1,492 |
) |
|
(896 |
) |
|
(392 |
) |
(11,892 |
) |
|
(1,876 |
) |
MSR - changes in fair value model assumptions |
(4,058 |
) |
|
(4,305 |
) |
|
(8,744 |
) |
|
(7,638 |
) |
|
1,077 |
|
(17,107 |
) |
|
7,307 |
|
Gain on derivative contract held as an economic hedge, net |
82 |
|
|
920 |
|
|
— |
|
|
— |
|
|
— |
|
1,002 |
|
|
— |
|
MSR valuation adjustment, net of gain on derivative contract held
as an economic hedge |
(3,976 |
) |
|
(3,385 |
) |
|
(8,744 |
) |
|
(7,638 |
) |
|
1,077 |
|
(16,105 |
) |
|
7,307 |
|
Servicing income |
5,989 |
|
|
5,460 |
|
|
5,460 |
|
|
4,917 |
|
|
3,942 |
|
16,909 |
|
|
10,352 |
|
Other |
(654 |
) |
|
(285 |
) |
|
253 |
|
|
(45 |
) |
|
1,493 |
|
(686 |
) |
|
1,825 |
|
Total mortgage banking revenue |
$ |
50,864 |
|
|
$ |
37,411 |
|
|
$ |
18,158 |
|
|
$ |
24,182 |
|
|
$ |
42,014 |
|
$ |
106,433 |
|
|
$ |
112,808 |
|
- 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 |
|
Q3 2019 compared to |
|
Q3 2019 compared to |
|
Sep 30, |
|
Jun 30, |
|
Mar 31, |
|
Dec 31, |
|
Sep 30, |
|
Q2 2019 |
|
Q3 2018 |
(Dollars in thousands) |
2019 |
|
2019 |
|
2019 |
|
2018 |
|
2018 |
|
$ Change |
|
% Change |
|
$ Change |
|
% Change |
Salaries and employee benefits: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Salaries |
$ |
78,067 |
|
|
$ |
75,360 |
|
|
$ |
74,037 |
|
|
$ |
67,708 |
|
|
$ |
69,893 |
|
|
$ |
2,707 |
|
|
4 |
% |
|
$ |
8,174 |
|
|
12 |
% |
Commissions and incentive compensation |
40,289 |
|
|
36,486 |
|
|
31,599 |
|
|
33,656 |
|
|
34,046 |
|
|
3,803 |
|
|
10 |
|
|
6,243 |
|
|
18 |
|
Benefits |
22,668 |
|
|
21,886 |
|
|
20,087 |
|
|
20,747 |
|
|
19,916 |
|
|
782 |
|
|
4 |
|
|
2,752 |
|
|
14 |
|
Total salaries and employee benefits |
141,024 |
|
|
133,732 |
|
|
125,723 |
|
|
122,111 |
|
|
123,855 |
|
|
7,292 |
|
|
5 |
|
|
17,169 |
|
|
14 |
|
Equipment |
13,314 |
|
|
12,759 |
|
|
11,770 |
|
|
11,523 |
|
|
10,827 |
|
|
555 |
|
|
4 |
|
|
2,487 |
|
|
23 |
|
Operating lease equipment depreciation |
8,907 |
|
|
8,768 |
|
|
8,319 |
|
|
8,462 |
|
|
7,370 |
|
|
139 |
|
|
2 |
|
|
1,537 |
|
|
21 |
|
Occupancy, net |
14,991 |
|
|
15,921 |
|
|
16,245 |
|
|
15,980 |
|
|
14,404 |
|
|
(930 |
) |
|
(6 |
) |
|
587 |
|
|
4 |
|
Data processing |
6,522 |
|
|
6,204 |
|
|
7,525 |
|
|
8,447 |
|
|
9,335 |
|
|
318 |
|
|
5 |
|
|
(2,813 |
) |
|
(30 |
) |
Advertising and marketing |
13,375 |
|
|
12,845 |
|
|
9,858 |
|
|
9,414 |
|
|
11,120 |
|
|
530 |
|
|
4 |
|
|
2,255 |
|
|
20 |
|
Professional fees |
8,037 |
|
|
6,228 |
|
|
5,556 |
|
|
9,259 |
|
|
9,914 |
|
|
1,809 |
|
|
29 |
|
|
(1,877 |
) |
|
(19 |
) |
Amortization of other intangible assets |
2,928 |
|
|
2,957 |
|
|
2,942 |
|
|
1,407 |
|
|
1,163 |
|
|
(29 |
) |
|
(1 |
) |
|
1,765 |
|
|
NM |
FDIC insurance |
148 |
|
|
4,127 |
|
|
3,576 |
|
|
4,044 |
|
|
4,205 |
|
|
(3,979 |
) |
|
(96 |
) |
|
(4,057 |
) |
|
(96 |
) |
OREO expense, net |
1,170 |
|
|
1,290 |
|
|
632 |
|
|
1,618 |
|
|
596 |
|
|
(120 |
) |
|
NM |
|
574 |
|
|
96 |
|
Other: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commissions - 3rd party brokers |
734 |
|
|
749 |
|
|
718 |
|
|
779 |
|
|
1,059 |
|
|
(15 |
) |
|
(2 |
) |
|
(325 |
) |
|
(31 |
) |
Postage |
2,321 |
|
|
2,606 |
|
|
2,450 |
|
|
2,047 |
|
|
2,205 |
|
|
(285 |
) |
|
(11 |
) |
|
116 |
|
|
5 |
|
Miscellaneous |
21,083 |
|
|
21,421 |
|
|
19,060 |
|
|
16,242 |
|
|
17,584 |
|
|
(338 |
) |
|
(2 |
) |
|
3,499 |
|
|
20 |
|
Total other |
24,138 |
|
|
24,776 |
|
|
22,228 |
|
|
19,068 |
|
|
20,848 |
|
|
(638 |
) |
|
(3 |
) |
|
3,290 |
|
|
16 |
|
Total Non-Interest Expense |
$ |
234,554 |
|
|
$ |
229,607 |
|
|
$ |
214,374 |
|
|
$ |
211,333 |
|
|
$ |
213,637 |
|
|
$ |
4,947 |
|
|
2 |
% |
|
$ |
20,917 |
|
|
10 |
% |
NM - Not meaningful.
|
|
Nine Months Ended |
|
|
|
|
|
Sep 30, |
|
Sep 30, |
$ |
|
% |
(Dollars in thousands) |
|
2019 |
|
2018 |
Change |
|
Change |
Salaries and employee benefits: |
|
|
|
|
|
|
|
Salaries |
|
$ |
227,464 |
|
|
$ |
198,855 |
|
$ |
28,609 |
|
|
14 |
% |
Commissions and incentive compensation |
|
108,374 |
|
|
101,902 |
|
6,472 |
|
|
6 |
|
Benefits |
|
64,641 |
|
|
57,209 |
|
7,432 |
|
|
13 |
|
Total salaries and employee benefits |
|
400,479 |
|
|
357,966 |
|
42,513 |
|
|
12 |
|
Equipment |
|
37,843 |
|
|
31,426 |
|
6,417 |
|
|
20 |
|
Operating lease equipment depreciation |
|
25,994 |
|
|
20,843 |
|
5,151 |
|
|
25 |
|
Occupancy, net |
|
47,157 |
|
|
41,834 |
|
5,323 |
|
|
13 |
|
Data processing |
|
20,251 |
|
|
26,580 |
|
(6,329 |
) |
|
(24 |
) |
Advertising and marketing |
|
36,078 |
|
|
31,726 |
|
4,352 |
|
|
14 |
|
Professional fees |
|
19,821 |
|
|
23,047 |
|
(3,226 |
) |
|
(14 |
) |
Amortization of other intangible assets |
|
8,827 |
|
|
3,164 |
|
5,663 |
|
|
NM |
FDIC insurance |
|
7,851 |
|
|
13,165 |
|
(5,314 |
) |
|
(40 |
) |
OREO expense, net |
|
3,092 |
|
|
4,502 |
|
(1,410 |
) |
|
(31 |
) |
Other: |
|
|
|
|
|
|
|
Commissions - 3rd party brokers |
|
2,201 |
|
|
3,485 |
|
(1,284 |
) |
|
(37 |
) |
Postage |
|
7,377 |
|
|
6,638 |
|
739 |
|
|
11 |
|
Miscellaneous |
|
61,564 |
|
|
50,379 |
|
11,185 |
|
|
22 |
|
Total other |
|
71,142 |
|
|
60,502 |
|
10,640 |
|
|
18 |
|
Total Non-Interest Expense |
|
$ |
678,535 |
|
|
$ |
614,755 |
|
$ |
63,780 |
|
|
10 |
% |
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 |
Nine Months Ended |
|
Sep 30, |
|
Jun 30, |
|
Mar 31, |
|
Dec 31, |
|
Sep 30, |
Sep 30, |
|
Sep 30, |
(Dollars and shares in thousands) |
2019 |
|
2019 |
|
2019 |
|
2018 |
|
2018 |
2019 |
|
2018 |
Reconciliation of Non-GAAP Net Interest Margin and
Efficiency Ratio: |
|
|
|
(A) Interest Income (GAAP) |
$ |
354,627 |
|
|
$ |
346,814 |
|
|
$ |
333,970 |
|
|
$ |
320,596 |
|
|
$ |
304,962 |
|
$ |
1,035,411 |
|
|
$ |
850,214 |
|
Taxable-equivalent adjustment: |
|
|
|
|
|
|
|
|
|
|
|
|
- Loans |
978 |
|
|
1,031 |
|
|
1,034 |
|
|
980 |
|
|
941 |
|
3,043 |
|
|
2,423 |
|
- Liquidity Management Assets |
574 |
|
|
568 |
|
|
565 |
|
|
586 |
|
|
575 |
|
1,707 |
|
|
1,672 |
|
- Other Earning Assets |
5 |
|
|
1 |
|
|
2 |
|
|
4 |
|
|
3 |
|
8 |
|
|
7 |
|
(B) Interest Income (non-GAAP) |
$ |
356,184 |
|
|
$ |
348,414 |
|
|
$ |
335,571 |
|
|
$ |
322,166 |
|
|
$ |
306,481 |
|
$ |
1,040,169 |
|
|
$ |
854,316 |
|
(C) Interest Expense (GAAP) |
$ |
89,775 |
|
|
$ |
80,612 |
|
|
$ |
71,984 |
|
|
$ |
66,508 |
|
|
$ |
57,399 |
|
$ |
242,371 |
|
|
$ |
139,399 |
|
(D) Net Interest Income (GAAP) (A minus C) |
$ |
264,852 |
|
|
$ |
266,202 |
|
|
$ |
261,986 |
|
|
$ |
254,088 |
|
|
$ |
247,563 |
|
$ |
793,040 |
|
|
$ |
710,815 |
|
(E) Net Interest Income (non-GAAP) (B minus
C) |
$ |
266,409 |
|
|
$ |
267,802 |
|
|
$ |
263,587 |
|
|
$ |
255,658 |
|
|
$ |
249,082 |
|
$ |
797,798 |
|
|
$ |
714,917 |
|
Net interest margin (GAAP) |
3.37 |
% |
|
3.62 |
% |
|
3.70 |
% |
|
3.61 |
% |
|
3.59 |
% |
3.56 |
% |
|
3.58 |
% |
Net interest margin, fully taxable-equivalent
(non-GAAP) |
3.39 |
% |
|
3.64 |
% |
|
3.72 |
% |
|
3.63 |
% |
|
3.61 |
% |
3.58 |
% |
|
3.6 |
% |
(F) Non-interest income |
$ |
115,137 |
|
|
$ |
98,158 |
|
|
$ |
81,657 |
|
|
$ |
75,308 |
|
|
$ |
99,930 |
|
$ |
294,952 |
|
|
$ |
280,842 |
|
(G) Gains (losses) on investment securities, net |
710 |
|
|
864 |
|
|
1,364 |
|
|
(2,649 |
) |
|
90 |
|
2,938 |
|
|
(249 |
) |
(H) Non-interest expense |
234,554 |
|
|
229,607 |
|
|
214,374 |
|
|
211,333 |
|
|
213,637 |
|
678,535 |
|
|
614,755 |
|
Efficiency ratio (H/(D+F-G)) |
61.84 |
% |
|
63.17 |
% |
|
62.63 |
% |
|
63.65 |
% |
|
61.50 |
% |
62.53 |
% |
|
61.98 |
% |
Efficiency ratio (non-GAAP) (H/(E+F-G)) |
61.59 |
% |
|
62.89 |
% |
|
62.34 |
% |
|
63.35 |
% |
|
61.23 |
% |
62.26 |
% |
|
61.72 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of Non-GAAP Tangible Common Equity
Ratio: |
|
|
|
Total shareholders’ equity (GAAP) |
$ |
3,540,325 |
|
|
$ |
3,446,950 |
|
|
$ |
3,371,972 |
|
|
$ |
3,267,570 |
|
|
$ |
3,179,822 |
|
|
|
|
Less: Non-convertible preferred stock (GAAP) |
(125,000 |
) |
|
(125,000 |
) |
|
(125,000 |
) |
|
(125,000 |
) |
|
(125,000 |
) |
|
|
|
Less: Intangible assets (GAAP) |
(627,972 |
) |
|
(631,499 |
) |
|
(620,224 |
) |
|
(622,565 |
) |
|
(564,938 |
) |
|
|
|
(I) Total tangible common shareholders’ equity (non-GAAP) |
$ |
2,787,353 |
|
|
$ |
2,690,451 |
|
|
$ |
2,626,748 |
|
|
$ |
2,520,005 |
|
|
$ |
2,489,884 |
|
|
|
|
(J) Total assets (GAAP) |
$ |
34,911,902 |
|
|
$ |
33,641,769 |
|
|
$ |
32,358,621 |
|
|
$ |
31,244,849 |
|
|
$ |
30,142,731 |
|
|
|
|
Less: Intangible assets (GAAP) |
(627,972 |
) |
|
(631,499 |
) |
|
(620,224 |
) |
|
(622,565 |
) |
|
(564,938 |
) |
|
|
|
(K) Total tangible assets (non-GAAP) |
$ |
34,283,930 |
|
|
$ |
33,010,270 |
|
|
$ |
31,738,397 |
|
|
$ |
30,622,284 |
|
|
$ |
29,577,793 |
|
|
|
|
Common equity to assets ratio (GAAP) (L/J) |
9.8 |
% |
|
9.9 |
% |
|
10.0 |
% |
|
10.1 |
% |
|
10.1 |
% |
|
|
|
Tangible common equity ratio (non-GAAP) (I/K) |
8.1 |
% |
|
8.2 |
% |
|
8.3 |
% |
|
8.2 |
% |
|
8.4 |
% |
|
|
|
|
Three Months Ended |
Nine Months Ended |
|
Sep 30, |
|
Jun 30, |
|
Mar 31, |
|
Dec 31, |
|
Sep 30, |
Sep 30, |
|
Sep 30, |
(Dollars and shares in thousands) |
2019 |
|
2019 |
|
2019 |
|
2018 |
|
2018 |
2019 |
|
2018 |
Reconciliation of Non-GAAP Tangible Book Value per Common
Share: |
|
|
|
Total shareholders’ equity |
$ |
3,540,325 |
|
|
$ |
3,446,950 |
|
|
$ |
3,371,972 |
|
|
$ |
3,267,570 |
|
|
$ |
3,179,822 |
|
|
|
|
Less: Preferred stock |
(125,000 |
) |
|
(125,000 |
) |
|
(125,000 |
) |
|
(125,000 |
) |
|
(125,000 |
) |
|
|
|
(L) Total common equity |
$ |
3,415,325 |
|
|
$ |
3,321,950 |
|
|
$ |
3,246,972 |
|
|
$ |
3,142,570 |
|
|
$ |
3,054,822 |
|
|
|
|
(M) Actual common shares outstanding |
56,698 |
|
|
56,668 |
|
|
56,639 |
|
|
56,408 |
|
|
56,377 |
|
|
|
|
Book value per common share (L/M) |
$ |
60.24 |
|
|
$ |
58.62 |
|
|
$ |
57.33 |
|
|
$ |
55.71 |
|
|
$ |
54.19 |
|
|
|
|
Tangible book value per common share (non-GAAP)
(I/M) |
$ |
49.16 |
|
|
$ |
47.48 |
|
|
$ |
46.38 |
|
|
$ |
44.67 |
|
|
$ |
44.16 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of Non-GAAP Return on Average Tangible
Common Equity: |
|
|
|
(N) Net income applicable to common shares |
$ |
97,071 |
|
|
$ |
79,416 |
|
|
$ |
87,096 |
|
|
$ |
77,607 |
|
|
$ |
89,898 |
|
$ |
263,583 |
|
|
$ |
257,359 |
|
Add: Intangible asset amortization |
2,928 |
|
|
2,957 |
|
|
2,942 |
|
|
1,407 |
|
|
1,163 |
|
8,827 |
|
|
3,164 |
|
Less: Tax effect of intangible asset amortization |
(773 |
) |
|
(771 |
) |
|
(731 |
) |
|
(366 |
) |
|
(292 |
) |
(2,277 |
) |
|
(798 |
) |
After-tax intangible asset amortization |
2,155 |
|
|
2,186 |
|
|
2,211 |
|
|
1,041 |
|
|
871 |
|
6,550 |
|
|
2,366 |
|
(O) Tangible net income applicable to common shares (non-GAAP) |
$ |
99,226 |
|
|
$ |
81,602 |
|
|
$ |
89,307 |
|
|
$ |
78,648 |
|
|
$ |
90,769 |
|
$ |
270,133 |
|
|
$ |
259,725 |
|
Total average shareholders' equity |
$ |
3,496,714 |
|
|
$ |
3,414,340 |
|
|
$ |
3,309,078 |
|
|
$ |
3,200,654 |
|
|
$ |
3,131,943 |
|
$ |
3,407,398 |
|
|
$ |
3,064,396 |
|
Less: Average preferred stock |
(125,000 |
) |
|
(125,000 |
) |
|
(125,000 |
) |
|
(125,000 |
) |
|
(125,000 |
) |
(125,000 |
) |
|
(125,000 |
) |
(P) Total average common shareholders' equity |
$ |
3,371,714 |
|
|
$ |
3,289,340 |
|
|
$ |
3,184,078 |
|
|
$ |
3,075,654 |
|
|
$ |
3,006,943 |
|
$ |
3,282,398 |
|
|
$ |
2,939,396 |
|
Less: Average intangible assets |
(630,279 |
) |
|
(624,794 |
) |
|
(622,240 |
) |
|
(574,757 |
) |
|
(547,552 |
) |
(625,800 |
) |
|
(539,281 |
) |
(Q) Total average tangible common shareholders’ equity
(non-GAAP) |
$ |
2,741,435 |
|
|
$ |
2,664,546 |
|
|
$ |
2,561,838 |
|
|
$ |
2,500,897 |
|
|
$ |
2,459,391 |
|
$ |
2,656,598 |
|
|
$ |
2,400,115 |
|
Return on average common equity, annualized
(N/P) |
11.42 |
% |
|
9.68 |
% |
|
11.09 |
% |
|
10.01 |
% |
|
11.86 |
% |
10.74 |
% |
|
11.71 |
% |
Return on average tangible common equity, annualized
(non-GAAP) (O/Q) |
14.36 |
% |
|
12.28 |
% |
|
14.14 |
% |
|
12.48 |
% |
|
14.64 |
% |
13.6 |
% |
|
14.47 |
% |
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, N.A., in Chicago, Libertyville
Bank & Trust Company, N.A., Barrington Bank &
Trust Company, N.A., Crystal Lake Bank & Trust Company,
N.A., Northbrook Bank & Trust Company, N.A., Schaumburg
Bank & Trust Company, N.A., Village Bank & Trust,
N.A., in Arlington Heights, Beverly Bank & Trust Company,
N.A. in Chicago, Wheaton Bank & Trust Company, N.A., State
Bank of The Lakes, N.A., in Antioch, Old Plank Trail Community
Bank, N.A. in New Lenox, St. Charles Bank & Trust Company
and Town Bank, N.A., 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, 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, N.A., 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 on
Thursday, October 17, 2019 at 1:00 p.m. (Central Time) regarding
third quarter 2019 results. Individuals interested in listening
should call (877) 363-5049 and enter Conference ID #6168809. 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 third 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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