ROSEMONT, Ill., Jan. 20, 2021 (GLOBE NEWSWIRE)
-- Wintrust Financial Corporation (“Wintrust”, “the Company”, "we"
or "our") (Nasdaq: WTFC) announced net income of $101.2 million or
$1.63 per diluted common share for the fourth quarter of 2020, a
decrease in diluted earnings per common share of 2% compared to the
third quarter of 2020 and an increase of 13% compared to the fourth
quarter of 2019. The Company recorded net income of $293.0 million
or $4.68 per diluted common share for the year ended December 31,
2020 compared to net income of $355.7 million or $6.03 per diluted
common share for the same period of 2019.
Highlights of the Fourth Quarter of
2020:
Comparative information to the third quarter of 2020
- Total assets increased by $1.3
billion.
- Total loans, excluding Paycheck
Protection Program ("PPP") loans, increased by $607 million
primarily due to growth in commercial loans and life insurance
premium finance receivables. This growth also included a $71
million net increase in residential real estate loans for
investment as the Company decided to allocate a portion of its
current and future mortgage production for investment.
• In addition, during the fourth quarter of 2020, the Company
exercised its early buy-out option on $248 million of eligible
loans previously sold to the Government National Mortgage
Association ("GNMA") recorded in mortgage loans held-for-sale. See
Table 1 for more information.
• PPP loans originated in 2020 declined by $663 million in the
fourth quarter of 2020 primarily as a result of processing
forgiveness payments. As of January 15, 2021, approximately 23% of
PPP loan balances originated in 2020 have been forgiven,
approximately 45% of balances are in the forgiveness review or
submission process, and approximately 32% of balances have yet to
apply.
- Total deposits increased by $1.2
billion, notwithstanding the return of approximately $666 million
in wholesale deposits during the fourth quarter of 2020.
- Net interest income increased by
$3.5 million primarily due to a reduction in the rate on
interest-bearing deposits and loan growth.
• The rate on interest-bearing deposits declined by 10 basis
points in the fourth quarter of 2020 as compared to the third
quarter of 2020. This improvement more than offset a two basis
point decline in the yield on total loans in the fourth quarter of
2020 as compared to the third quarter of 2020.
• The Company recognized $16.8 million of PPP loan fee
accretion in the fourth quarter of 2020 as compared to $17.4
million in the third quarter of 2020 on PPP loans originated in
2020. As of December 31, 2020, the Company had approximately $32.5
million of PPP loan fees that have yet to be recognized in
income.
- The loans to deposits ratio ended
the fourth quarter of 2020 at 86.5% as compared to 89.7% as of
September 30, 2020. Excluding PPP loans, the loans to deposits
ratio ended the fourth quarter of 2020 at 79.2%.
- Mortgage banking revenue decreased
by $21.7 million to $86.8 million for the fourth quarter of 2020 as
compared to $108.5 million in the prior quarter.
- Outstanding COVID-19 related loan
modifications for customers totaled approximately $345 million or
1.2% of total loans, excluding PPP loans, as of December 31, 2020
as compared to $413 million or 1.4% as of September 30, 2020.
- Provision for credit losses totaled
$1.2 million in the fourth quarter of 2020 as compared to $25.0
million in the third quarter of 2020.
- Recorded net charge-offs of $10.3
million in the fourth quarter of 2020, of which $5.9 million were
reserves on individually assessed loans as of the prior quarter
end, as compared to net charge-offs of $9.3 million in the third
quarter of 2020. Net charge-offs as a percentage of average total
loans, totaled 13 basis points in the fourth quarter of 2020 on an
annualized basis compared to 12 basis points on an annualized basis
in the third quarter of 2020.
- The allowance for credit losses on
our core loan portfolio is approximately 1.82% of the outstanding
balance as of December 31, 2020, down from 1.88% as of September
30, 2020. See Table 12 for more information.
- Non-performing loans declined by
$45.6 million, or 26%, and totaled $127.5 million, or 0.40% of
total loans, as of December 31, 2020 as compared to $173.1 million,
or 0.54% of total loans, as of September 30, 2020.
Other items of note from the fourth quarter
of 2020
- The following items had a $13.2
million unfavorable pre-tax income impact on the fourth quarter of
2020:
• Recorded a decrease in the value of mortgage servicing
rights related to changes in fair value model assumptions of $5.2
million in the fourth quarter of 2020 as compared to a decrease of
$3.0 million in the third quarter of 2020.
• Accrued $6.6 million of contingent consideration expense in
the fourth quarter of 2020 related to the previous acquisition of
mortgage operations as compared to $6.3 million in the third
quarter of 2020, which was recorded in other non-interest
expense.
• Recorded an impairment charge of $1.4 million in occupancy
expense related to the planned closure of 10 bank branches.
- Repurchased 974,150 shares of our
common stock at a cost of $54.9 million, or an average price of
$56.40 per share.
Edward J. Wehmer, Founder and Chief Executive
Officer, commented, "Wintrust reported net income of $101.2 million
for the fourth quarter of 2020, down from $107.3 million in the
third quarter of 2020. The fourth quarter of 2020 was characterized
by significant loan growth, increased net interest income, strong
mortgage banking revenue, a significant reduction in non-performing
loans and a continued focus to increase franchise value in our
market area."
Reflecting on the year, Mr. Wehmer stated, "I am
very appreciative of our staff's tireless efforts to make the best
of a difficult year. The year offered many challenges and I could
not be more proud of our results. Pre-tax income, excluding
provision for credit losses (non-GAAP), increased by 13% to $604
million in 2020 as compared to $534 million in 2019. We finished
2020 with a lot of momentum and look forward to serving our
communities and being responsive to our customers in the new
year."
Mr. Wehmer continued, "The Company experienced
significant loan growth, excluding PPP loans, in the fourth quarter
of 2020, including growth in its commercial, commercial real
estate, residential real estate loans for investment and life
insurance premium finance receivable portfolios. In addition, the
Company supplemented loan growth by exercising its early buy-out
option on eligible GNMA loans. The majority of the loan growth was
in the latter part of the quarter as total period end loans,
excluding PPP loans, were $678 million higher than average total
loans, excluding PPP loans, in the fourth quarter of 2020. Our loan
pipelines remain strong and we expect to continue to grow loans in
2021 without compromising our credit standards. Total deposits
increased by $1.2 billion as compared to the third quarter of 2020
even with the return of approximately $666 million in wholesale
deposits. Additionally, the mix of deposit growth during the
quarter was favorable evidenced by $1.3 billion of growth in
non-interest bearing deposits. We continue to emphasize growing our
franchise, including gathering low cost deposits, which we believe
will drive value in the long term. Our loans to deposits ratio
ended the quarter at 86.5% and we believe that we have sufficient
liquidity to meet customer loan demand."
Mr. Wehmer commented, "Net interest income
increased in the fourth quarter of 2020 primarily due to lower
interest expense on interest-bearing deposits and loan growth. The
rate on interest-bearing deposits declined 10 basis points in the
fourth quarter of 2020 as compared to the third quarter of 2020.
This improvement more than offset a two basis point decline in the
yield on total loans in the fourth quarter of 2020 as compared to
the third quarter of 2020. PPP loan fee accretion was relatively
flat as the Company recognized $16.8 million of PPP loan fee
accretion in the fourth quarter of 2020 as compared to $17.4
million in the third quarter of 2020. The three basis point decline
in the net interest margin in the fourth quarter of 2020 as
compared to the third quarter of 2020 was primarily due to
increased levels of liquidity as average interest-bearing cash
increased by $1.0 billion. We have accumulated excess liquidity in
recent quarters and believe that, if conditions allow for suitable
deployment of such excess liquidity, we could potentially increase
our net interest margin by 15 to 30 basis points, depending on the
mix of earning assets of such reinvestment."
Mr. Wehmer noted, “Our mortgage banking business
delivered another strong quarter of mortgage banking revenue in
light of the demand associated with historically low long-term
interest rates. Loan volumes originated for sale in the fourth
quarter of 2020 were $2.4 billion, up from $2.2 billion in the
third quarter of 2020. Production revenue decreased during the
quarter as the origination pipeline declined as compared to the end
of the third quarter of 2020. This decline was partially due to the
Company increasing its allocation of pipeline to originations for
investment in order to increase earning assets on the balance
sheet. Additionally, the Company recorded a $5.2 million decline in
the value of mortgage servicing rights related to changes in fair
value model assumptions. We are leveraging efficiencies in our
delivery channels and staffing strategies to keep pace with
unprecedented demand. The strong quarter of mortgage performance
contributed to reporting a 1.12% net overhead ratio for the fourth
quarter of 2020. We believe the first quarter of 2021 will provide
another strong quarter for mortgage banking production."
Commenting on credit quality, Mr. Wehmer stated,
"The Company recorded provision for credit losses of $1.2 million
reflecting improvement in credit quality in the fourth quarter of
2020. We expended significant effort in the quarter diligently
reviewing and addressing our credit portfolio. The Company's
population of loans with a rating below "pass" as of December 31,
2020 declined by $273 million, or 14%, as compared to the prior
quarter end primarily due to a note sale, pay-offs and risk rating
upgrades. The level of non-performing loans decreased by $45.6
million primarily due to non-performing loan pay-offs.
Additionally, net charge-offs remained relatively low totaling
$10.3 million in the fourth quarter of 2020 as compared to $9.3
million in the third quarter of 2020. The allowance for credit
losses on our core loan portfolio as of December 31, 2020 is
approximately 1.82% of the outstanding balance. We believe that the
Company’s reserves remain appropriate and we remain diligent in our
review of credit."
Mr. Wehmer added, "In addition to the previously
announced sale of three branches in southwestern Wisconsin, we
continue to review our branch footprint and have initiated plans to
close an additional 10 branches. These are predominantly smaller
locations in close proximity to other Wintrust locations. As such,
we do not expect any material attrition or customer disruption. We
expect the noted branches to close prior to the end of the second
quarter and the branch sale in Wisconsin to close in the second
quarter. In the fourth quarter of 2020, we recorded an impairment
charge of $1.4 million associated with the closing of the 10
locations. Collectively, the reduction of 13 locations represents
approximately 7% of the Wintrust retail banking locations and will
result in a reduction in expenses of approximately $5 million
annually on an ongoing basis. It is important to note that while we
see increased use of electronic services and are investing heavily
in digital capabilities to allow clients to choose how they want to
be served, Wintrust will continue to selectively open branches in
areas where we are not represented."
Mr. Wehmer concluded, "We remain committed to
supporting our community, including the well-being and safety of
our customers and employees. We are participating in the latest
round of PPP having opened our application portal on January 11,
2021. As of January 19, 2021, we have received approximately
5,400 applications aggregating in excess of $1.1 billion of loans
with associated fees of approximately $44 million. We are
focused on taking advantage of market opportunities to prudently
deploy excess liquidity into earning assets. In particular, we
expect to grow PPP loans, organic loans, residential real estate
loans for investment and investment securities while maintaining an
interest rate sensitive asset portfolio. We continue to evaluate
our operating expense base to enhance future profitability. We also
continue to carefully monitor the COVID-19 pandemic and evaluate
the impact that it could have on the economy, our customers and our
business. We remain focused on navigating the current environment
by actively monitoring and managing our credit portfolio."
Graphs available at the following
link: http://ml.globenewswire.com/Resource/Download/0bdf7499-4e66-4b90-bd05-707da79ea7cd
SUMMARY OF RESULTS:
BALANCE SHEET
Total asset growth of $1.3 billion in the fourth
quarter of 2020 was primarily comprised of a $977 million increase
in interest-bearing deposits with banks, a $312 million increase in
mortgage loans held-for-sale, and a $128 million increase in
investment securities, partially offset by a $56 million decrease
in loans. The Company believes that the $4.8 billion of
interest-bearing deposits with banks held as of December 31, 2020
provides more than sufficient liquidity to operate its business
plan.
The $56 million decrease in loans was primarily
a result of processing forgiveness payments, as PPP loans declined
by $663 million in the fourth quarter of 2020. Total loans,
excluding PPP loans, increased by $607 million primarily due to
growth in commercial loans and life insurance premium finance
receivables. This growth also included a $71 million net increase
in residential real estate loans for investment as the Company
decided to allocate a portion of its current and future mortgage
production for investment.
Total liabilities increased $1.3 billion in the
fourth quarter of 2020 resulting primarily from a $1.2 billion
increase in total deposits, which included the return of
approximately $666 million in wholesale deposits. The increase in
deposits was primarily due to a $1.3 billion increase in
non-interest-bearing deposits. Our loans to deposits ratio ended
the quarter at 86.5%. 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.
For more information regarding changes in the
Company’s balance sheet, see Consolidated Statements of Condition
and Tables 1 through 3 in this report.
NET INTEREST INCOME
For the fourth quarter of 2020, net interest
income totaled $259.4 million, an increase of $3.5 million as
compared to the third quarter of 2020 and a decrease of $2.5
million as compared to the fourth quarter of 2019. The $3.5 million
increase in net interest income in the fourth quarter of 2020
compared to the third quarter of 2020 was primarily due to a 10
basis point decline in the rate on interest-bearing deposits in the
fourth quarter of 2020 and loan growth.
Net interest margin was 2.53% (2.54% on a fully
taxable-equivalent basis, non-GAAP) during the fourth quarter of
2020 compared to 2.56% (2.57% on a fully taxable-equivalent basis,
non-GAAP) during the third quarter of 2020 and 3.17% (3.19% on a
fully taxable-equivalent basis, non-GAAP) during the fourth quarter
of 2019. The three basis point decrease in net interest margin in
the fourth quarter of 2020 as compared to the third quarter of 2020
was attributable to a 10 basis point decline in the yield on
earning assets and a two basis point decrease in the net free funds
contribution partially offset by a nine basis point decrease in the
rate paid on interest-bearing liabilities. The 10 basis point
decline in the yield on earning assets in the fourth quarter of
2020 as compared to the third quarter of 2020 was primarily due to
a $1.0 billion increase in average interest-bearing deposits with
banks and cash equivalents. The decrease in the rate paid on
interest-bearing liabilities in the fourth quarter of 2020 as
compared to the prior quarter is primarily due to a 10 basis point
decrease in the rate paid on interest-bearing deposits as
management initiated various deposit rate reductions given the low
interest rate environment.
For more information regarding net interest
income, see Tables 4 through 8 in this report.
ASSET QUALITY
The allowance for credit losses totaled $380.0
million as of December 31, 2020, a decrease of $9.0 million as
compared to $389.0 million as of September 30, 2020. The allowance
for credit losses decreased primarily due to portfolio changes and
was partially offset by changes in the macroeconomic forecasted
conditions. The Commercial, Industrial and Other portfolio realized
a decrease in the allowance for credit losses as compared to the
prior quarter-end, which was primarily driven by improving
portfolio credit characteristics. There was an increase in
the allowance for credit losses in the Commercial Real Estate
portfolios driven by deterioration in the Commercial Real Estate
Price Index forecast, partially offset by improvement in Baa
Corporate Credit Spreads. Other key drivers of allowance for credit
losses changes in these portfolios include, but are not limited to,
decreases in COVID-19 related loan modifications and loan risk
rating migration.
The provision for credit losses totaled $1.2
million for the fourth quarter of 2020 compared to $25.0 million
for the third quarter of 2020 and $7.8 million for the fourth
quarter of 2019. For more information regarding the provision for
credit losses, see Table 11 in this report.
Management believes the allowance for credit
losses is appropriate to account for expected credit losses. The
Current Expected Credit Losses ("CECL") standard requires the
Company to estimate expected credit losses over the life of the
Company’s financial assets at a certain point in time. There can be
no assurances, however, that future losses will not significantly
exceed the amounts provided for, thereby affecting future results
of operations. A summary of the allowance for credit losses
calculated for the loan components in the core loan portfolio, the
niche and consumer loan portfolio and the purchased loan portfolio
as of December 31, 2020 and September 30, 2020 is shown
on Table 12 of this report.
Net charge-offs totaled $10.3 million in the
fourth quarter of 2020, a $1.0 million increase from $9.3 million
in the third quarter of 2020 and a $2.4 million decrease from $12.7
million in the fourth quarter of 2019. Net charge-offs as a
percentage of average total loans, totaled 13 basis points in the
fourth quarter of 2020 on an annualized basis compared to 12 basis
points on an annualized basis in the third quarter of 2020 and 19
basis points on an annualized basis in the fourth quarter of 2019.
For more information regarding net charge-offs, see Table 10 in
this report.
As of December 31, 2020, $41.6 million of
all loans, or 0.1%, were 60 to 89 days past due and $139.1 million,
or 0.4%, were 30 to 59 days (or one payment) past due. As of
September 30, 2020, $49.9 million of all loans, or 0.2%, were
60 to 89 days past due and $186.5 million, or 0.6%, were 30 to 59
days (or one payment) past due. Many of the commercial and
commercial real-estate loans shown as 60 to 89 days and 30 to 59
days past due are included on the Company’s internal problem loan
reporting system. Loans on this system are closely monitored by
management on a monthly basis.
The Company’s home equity and residential real
estate loan portfolios continue to exhibit low delinquency rates as
of December 31, 2020. Home equity loans at December 31,
2020 that are current with regard to the contractual terms of the
loan agreement represent 98.3% of the total home equity portfolio.
Residential real estate loans at December 31, 2020 that are
current with regards to the contractual terms of the loan
agreements comprised 96.8% of total residential real estate loans
outstanding. For more information regarding past due loans, see
Table 13 in this report.
Outstanding COVID-19 related loan modifications
for customers totaled approximately $345 million or 1.2% of total
loans, excluding PPP loans as of December 31, 2020 as compared to
$413 million or 1.4% as of September 30, 2020 and $1.7 billion or
6.2% as of June 30, 2020. The outstanding modifications primarily
changed terms to interest-only payments.
The ratio of non-performing assets to total
assets was 0.32% as of December 31, 2020, compared to 0.42% at
September 30, 2020, and 0.36% at December 31, 2019.
Non-performing assets totaled $144.1 million at December 31,
2020, compared to $182.3 million at September 30, 2020 and
$132.8 million at December 31, 2019. Non-performing loans
totaled $127.5 million, or 0.40% of total loans, at
December 31, 2020 compared to $173.1 million, or 0.54% of
total loans, at September 30, 2020 and $117.6 million, or
0.44% of total loans, at December 31, 2019. The decrease in
non-performing loans as of December 31, 2020 as compared to
September 30, 2020 is primarily due to $30.1 million in
payments received throughout the quarter. The payment activity was
primarily driven by sales of underlying real property collateral,
sales of operating businesses, and refinance activity. Other real
estate owned ("OREO") of $16.6 million at December 31, 2020
increased by $7.4 million compared to $9.2 million at
September 30, 2020 and increased $1.4 million compared to
$15.2 million at December 31, 2019. Management is pursuing the
resolution of all non-performing assets. At this time, management
believes OREO is appropriately valued at the lower of carrying
value or fair value less estimated costs to sell. For more
information regarding non-performing assets, see Table 14 in this
report.
NON-INTEREST INCOME
Wealth management revenue increased by $1.8
million during the fourth quarter of 2020 as compared to the third
quarter of 2020 primarily due to increased trust and asset
management fees and 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 decreased by $21.7
million in the fourth quarter of 2020 as compared to the third
quarter of 2020, primarily due to a $23.3 million decrease in
production revenue. Production revenue decreased as
origination pipelines designated for sale declined as compared
to the prior quarter, due in part to the Company's intention to
retain more loans for investment. Loans originated for sale were
$2.4 billion in the fourth quarter of 2020, an increase of $124.7
million as compared to the third quarter of 2020. The percentage of
origination volume from refinancing activities was 65% in the
fourth quarter of 2020 as compared to 59% in the third quarter of
2020. Mortgage banking revenue includes revenue from activities
related to originating, selling and servicing residential real
estate loans for the secondary market.
During the fourth quarter of 2020, the fair
value of the mortgage servicing rights portfolio increased
primarily due to the capitalization of $20.3 million of
servicing rights during the fourth quarter of 2020. This increase
was partially offset by a negative fair value adjustment of $5.2
million as well as a reduction in value of $9.0 million due to
payoffs and paydowns of the existing portfolio. No economic hedges
were outstanding relative to the mortgage servicing rights
portfolio during the third or fourth quarter of 2020.
Other non-interest income increased by $6.4
million in the fourth quarter of 2020 as compared to the third
quarter of 2020 primarily due to increased bank owned life
insurance ("BOLI") revenue and income on partnership
investments.
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 $7.1 million in the fourth quarter of 2020 as compared to the
third quarter of 2020. The $7.1 million increase is comprised of an
increase of $3.9 million in commissions and incentive compensation,
an increase of $3.7 million in salaries expense, partially offset
by a decrease of $520,000 in employee benefits expense.
The increase in commissions and incentive
compensation is primarily due to increased commissions expense from
higher levels of mortgage loan originations in the current quarter.
The increase in salaries expense is primarily related to increased
staffing costs to support mortgage origination and investment in
technology related services to satisfy customer demands and create
efficiencies in operations.
Occupancy expense totaled $19.7 million in
the fourth quarter of 2020, an increase of $3.9 million as
compared to the third quarter of 2020. This increase is primarily
associated with an impairment charge of $1.4 million related to the
planned closure of 10 bank branches, increased real estate tax
assessment estimates and a higher level of utility charges.
Equipment expense totaled $20.6 million in the
fourth quarter of 2020, an increase of $3.3 million as compared to
the third quarter of 2020. This increase is primarily due to
increased software licensing expenses.
Advertising and Marketing expense totaled $9.9
million in the fourth quarter of 2020, an increase of $2.0 million
as compared to the third quarter of 2020. The increase in the
fourth quarter relates primarily to increased digital advertising
campaigns and corporate sponsorship costs. Marketing costs are
incurred to promote the Company's brand, commercial banking
capabilities and various products, to attract loans and deposits
and to announce new branch openings as well as the expansion of the
Company's non-bank businesses. The level of marketing expenditures
depends on the timing of sponsorship programs utilized which are
determined based on the market area, targeted audience, competition
and various other factors.
Miscellaneous expense in the fourth quarter of
2020 increased by $302,000 as compared to the third quarter of
2020. The fourth quarter of 2020 included $6.6 million of
contingent consideration expense related to the previous
acquisition of mortgage operations as compared to $6.3 million in
the prior quarter. The liability for contingent consideration
expense related to the previous acquisition of mortgage operations
is based upon forward looking mortgage origination volumes and the
estimated profitability of that operation. Should those
assumptions change going forward, the liability may need to be
increased or decreased. The contractual period covering contingent
consideration ends in January 2023 and the final two years of the
contract contemplate a lower ratio of contingent consideration
relative to financial performance. As a result, the Company does
not expect to have material adjustments to the contingent
consideration liability in future periods. Miscellaneous expense
also includes ATM expenses, correspondent bank charges, directors
fees, telephone, travel and entertainment, corporate insurance,
dues and subscriptions, problem loan expenses and lending
origination costs that are not deferred.
For more information regarding non-interest
expense, see Table 17 in this report.
INCOME TAXES
The Company recorded income tax expense of $33.5
million in the fourth quarter of 2020 compared to $30.0 million in
the third quarter of 2020 and $30.7 million in the fourth quarter
of 2019. The effective tax rates were 24.87% in the fourth quarter
of 2020 compared to 21.83% in the third quarter of 2020 and 26.33%
in the fourth quarter of 2019. The effective tax rate in the third
quarter of 2020 reflects the impact of a $9.0 million state income
tax benefit related to the settlement of an uncertain tax
position.
BUSINESS UNIT SUMMARY
Community Banking
Through its community banking unit, the Company
provides banking and financial services primarily to individuals,
small to mid-sized businesses, local governmental units and
institutional clients residing primarily in the local areas the
Company services. In the fourth quarter of 2020, this unit expanded
its loan portfolio, excluding PPP loans, and its deposit portfolio.
However, the banking segment also experienced net interest margin
compression primarily due to increased levels of liquidity as
average interest bearing cash increased by $1.0 billion in the
fourth quarter of 2020 as compared to the third quarter of
2020.
Mortgage banking revenue was $86.8 million for
the fourth quarter of 2020, a decrease of $21.7 million as compared
to the third quarter of 2020 primarily due to a $23.3 million
decrease in production revenue as origination pipelines declined as
compared to the prior quarter. Service charges on deposit accounts
totaled $11.8 million in the fourth quarter of 2020, an increase of
$344,000 as compared to the third quarter of 2020 primarily due to
higher account analysis and overdraft fees. The Company's gross
commercial and commercial real estate loan pipelines remained
strong as of December 31, 2020. Before the impact of scheduled
payments and prepayments, gross commercial and commercial real
estate loan pipelines were estimated to be approximately $1.1
billion to $1.3 billion at December 31, 2020. When adjusted
for the probability of closing, the pipelines were estimated to be
approximately $650 million to $750 million at December 31,
2020.
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, accounts
receivable financing and value-added, out-sourced administrative
services and other services. Originations within the insurance
premium financing receivables portfolio were $2.9 billion during
the fourth quarter of 2020 and average balances increased by $49.9
million as compared to the third quarter of 2020. The increase in
average balances was more than offset by margin compression in this
portfolio resulting in a $3.6 million decrease in interest income
attributed to the lower market rates of interest associated with
the insurance premium finance receivables portfolio. The Company's
leasing business grew during the fourth quarter of 2020, with its
portfolio of assets, including capital leases, loans and equipment
on operating leases, increasing by $95.2 million to $2.1 billion at
the end of the fourth quarter of 2020. Revenues from the Company's
out-sourced administrative services business were $1.3 million in
the fourth quarter of 2020, an increase of $186,000 from the third
quarter of 2020.
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 totaled $26.8 million in the
fourth quarter of 2020, an increase of $1.8 million compared to the
third quarter of 2020. Increases in asset management fees were
primarily due to favorable equity market performance during the
fourth quarter of 2020. At December 31, 2020, the Company’s
wealth management subsidiaries had approximately $30.1 billion of
assets under administration, which included $3.5 billion of assets
owned by the Company and its subsidiary banks, representing a $1.9
billion increase from the $28.2 billion of assets under
administration at September 30, 2020.
ITEMS IMPACTING COMPARATIVE FINANCIAL
RESULTS
Paycheck Protection Program
On March 27, 2020, the President of the United
States signed the CARES Act, which authorized the Small Business
Administration ("SBA") to guarantee loans under the PPP for small
businesses who met the necessary eligibility requirements in order
to keep their workers on the payroll. The Company began accepting
applications on April 3, 2020. From such date through the end of
2020, the Company secured authorization from the SBA for and funded
over 12,000 PPP loans with a carrying balance of approximately $3.4
billion. As of December 31, 2020, the carrying balance of such
loans was reduced to approximately $2.7 billion primarily resulting
from forgiveness by the SBA.
Acquisitions
On November 1, 2019, the Company completed its
acquisition of SBC, Incorporated (“SBC”). SBC was the parent
company of Countryside Bank. Through this business combination, the
Company acquired Countryside Bank's six banking offices located in
Countryside, Burbank, Darien, Homer Glen, Oak Brook and Chicago,
Illinois. As of the acquisition date, the Company acquired
approximately $620 million in assets, including approximately $423
million in loans, and approximately $508 million in deposits. The
Company recorded goodwill of approximately $40 million on the
acquisition.
On October 7, 2019, the Company completed its
acquisition of STC Bancshares Corp. (“STC”). STC was the
parent company of STC Capital Bank. Through this business
combination, the Company acquired STC Capital Bank's five banking
offices located in the communities of St. Charles, Geneva and South
Elgin, Illinois. As of the acquisition date, the Company acquired
approximately $250 million in assets, including approximately $174
million in loans, and approximately $201 million in
deposits. The Company recorded goodwill of approximately $19
million on the acquisition.
On May 24, 2019, the Company completed its
acquisition of Rush-Oak Corporation ("ROC"). ROC was the parent
company of Oak Bank. Through this business combination, the Company
acquired Oak Bank's one banking location in Chicago, Illinois. As
of the acquisition date, the Company acquired approximately $223
million in assets, including approximately $125 million in loans,
and approximately $161 million in deposits. The Company recorded
goodwill of approximately $12 million on the acquisition.
Adoption of New Credit Losses Accounting
Standard
Beginning in 2020, the Company adopted the CECL
standard, which impacted the measurement of the Company’s allowance
for credit losses (including the allowance for unfunded
lending-related commitments). CECL replaced the previous incurred
loss methodology, which delayed recognition until such loss was
probable, with a methodology that reflects an estimate of lifetime
expected credit losses considering current economic condition and
forecasts. Though other assets, including investment securities and
other receivables, were considered in-scope of the standard and
required a measurement of the allowance for credit loss, the most
significant impact of CECL remains within the Company’s loan
portfolios and related lending commitments. For more information
regarding the adoption of CECL, see the "Asset Quality" section and
the asset quality Tables 10-14 in this report.
WINTRUST FINANCIAL CORPORATION
Selected Financial Highlights
|
|
Three Months Ended |
Years Ended |
(Dollars in thousands, except per share data) |
|
Dec 31, 2020 |
|
Sep 30, 2020 |
|
Jun 30, 2020 |
|
Mar 31, 2020 |
|
Dec 31, 2019 |
Dec 31, 2020 |
|
Dec 31, 2019 |
Selected Financial Condition Data (at end of
period): |
|
|
|
Total
assets |
|
$ |
45,080,768 |
|
|
$ |
43,731,718 |
|
|
$ |
43,540,017 |
|
|
$ |
38,799,847 |
|
|
$ |
36,620,583 |
|
|
|
|
Total
loans (1) |
|
32,079,073 |
|
|
32,135,555 |
|
|
31,402,903 |
|
|
27,807,321 |
|
|
26,800,290 |
|
|
|
|
Total
deposits |
|
37,092,651 |
|
|
35,844,422 |
|
|
35,651,874 |
|
|
31,461,660 |
|
|
30,107,138 |
|
|
|
|
Junior
subordinated debentures |
|
253,566 |
|
|
253,566 |
|
|
253,566 |
|
|
253,566 |
|
|
253,566 |
|
|
|
|
Total shareholders’ equity |
|
4,115,995 |
|
|
4,074,089 |
|
|
3,990,218 |
|
|
3,700,393 |
|
|
3,691,250 |
|
|
|
|
Selected Statements of Income Data: |
|
|
|
Net interest income |
|
$ |
259,397 |
|
|
$ |
255,936 |
|
|
$ |
263,131 |
|
|
$ |
261,443 |
|
|
$ |
261,879 |
|
$ |
1,039,907 |
|
|
$ |
1,054,919 |
|
Net
revenue (2) |
|
417,758 |
|
|
426,529 |
|
|
425,124 |
|
|
374,685 |
|
|
374,099 |
|
1,644,096 |
|
|
1,462,091 |
|
Net
income |
|
101,204 |
|
|
107,315 |
|
|
21,659 |
|
|
62,812 |
|
|
85,964 |
|
292,990 |
|
|
355,697 |
|
Pre-tax
income, excluding provision for credit losses (non-GAAP)
(3) |
|
135,891 |
|
|
162,310 |
|
|
165,756 |
|
|
140,044 |
|
|
124,508 |
|
604,001 |
|
|
533,965 |
|
Net
income per common share – Basic |
|
1.64 |
|
|
1.68 |
|
|
0.34 |
|
|
1.05 |
|
|
1.46 |
|
4.72 |
|
|
6.11 |
|
Net income per common share – Diluted |
|
1.63 |
|
|
1.67 |
|
|
0.34 |
|
|
1.04 |
|
|
1.44 |
|
4.68 |
|
|
6.03 |
|
Selected Financial Ratios and Other Data: |
|
|
|
Performance Ratios: |
|
|
|
Net
interest margin |
|
2.53 |
% |
|
2.56 |
% |
|
2.73 |
% |
|
3.12 |
% |
|
3.17 |
% |
2.72 |
% |
|
3.45 |
% |
Net
interest margin - fully taxable equivalent (non-GAAP)
(3) |
|
2.54 |
|
|
2.57 |
|
|
2.74 |
|
|
3.14 |
|
|
3.19 |
|
2.73 |
|
|
3.47 |
|
Non-interest income to average assets |
|
1.44 |
|
|
1.58 |
|
|
1.55 |
|
|
1.24 |
|
|
1.25 |
|
1.46 |
|
|
1.23 |
|
Non-interest expense to average assets |
|
2.56 |
|
|
2.45 |
|
|
2.48 |
|
|
2.58 |
|
|
2.78 |
|
2.51 |
|
|
2.79 |
|
Net
overhead ratio (4) |
|
1.12 |
|
|
0.87 |
|
|
0.93 |
|
|
1.33 |
|
|
1.53 |
|
1.05 |
|
|
1.57 |
|
Return on
average assets |
|
0.92 |
|
|
0.99 |
|
|
0.21 |
|
|
0.69 |
|
|
0.96 |
|
0.71 |
|
|
1.07 |
|
Return on
average common equity |
|
10.30 |
|
|
10.66 |
|
|
2.17 |
|
|
6.82 |
|
|
9.52 |
|
7.50 |
|
|
10.41 |
|
Return on
average tangible common equity (non-GAAP) (3) |
|
12.95 |
|
|
13.43 |
|
|
2.95 |
|
|
8.73 |
|
|
12.17 |
|
9.54 |
|
|
13.22 |
|
Average
total assets |
|
$ |
43,810,005 |
|
|
$ |
42,962,844 |
|
|
$ |
42,042,729 |
|
|
$ |
36,625,490 |
|
|
$ |
35,645,190 |
|
$ |
41,371,339 |
|
|
$ |
33,232,083 |
|
Average
total shareholders’ equity |
|
4,050,286 |
|
|
4,034,902 |
|
|
3,908,846 |
|
|
3,710,169 |
|
|
3,622,184 |
|
3,926,688 |
|
|
3,461,535 |
|
Average
loans to average deposits ratio |
|
87.8 |
% |
|
89.6 |
% |
|
87.8 |
% |
|
90.1 |
% |
|
88.8 |
% |
88.8 |
% |
|
91.4 |
% |
Period-end loans to deposits ratio |
|
86.5 |
|
|
89.7 |
|
|
88.1 |
|
|
88.4 |
|
|
89.0 |
|
|
|
|
Common Share Data at end of period: |
|
|
|
Market
price per common share |
|
$ |
61.09 |
|
|
$ |
40.05 |
|
|
$ |
43.62 |
|
|
$ |
32.86 |
|
|
$ |
70.90 |
|
|
|
|
Book
value per common share |
|
65.24 |
|
|
63.57 |
|
|
62.14 |
|
|
62.13 |
|
|
61.68 |
|
|
|
|
Tangible
book value per common share (non-GAAP) (3) |
|
53.23 |
|
|
51.70 |
|
|
50.23 |
|
|
50.18 |
|
|
49.70 |
|
|
|
|
Common shares outstanding |
|
56,769,625 |
|
|
57,601,991 |
|
|
57,573,672 |
|
|
57,545,352 |
|
|
57,821,891 |
|
|
|
|
Other
Data at end of period: |
|
|
|
Tier 1
leverage ratio (5) |
|
8.1 |
% |
|
8.2 |
% |
|
8.1 |
% |
|
8.5 |
% |
|
8.7 |
% |
|
|
|
Risk-based capital ratios: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Tier 1
capital ratio (5) |
|
10.0 |
|
|
10.2 |
|
|
10.1 |
|
|
9.3 |
|
|
9.6 |
|
|
|
|
Common
equity tier 1 capital ratio(5) |
|
8.8 |
|
|
9.0 |
|
|
8.8 |
|
|
8.9 |
|
|
9.2 |
|
|
|
|
Total
capital ratio (5) |
|
12.6 |
|
|
12.9 |
|
|
12.8 |
|
|
11.9 |
|
|
12.2 |
|
|
|
|
Allowance
for credit losses (6) |
|
$ |
379,969 |
|
|
$ |
388,971 |
|
|
$ |
373,174 |
|
|
$ |
253,482 |
|
|
$ |
158,461 |
|
|
|
|
Allowance
for loan and unfunded lending-related commitment losses to total
loans |
|
1.18 |
% |
|
1.21 |
% |
|
1.19 |
% |
|
0.91 |
% |
|
0.59 |
% |
|
|
|
Number
of: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Bank subsidiaries |
|
15 |
|
|
15 |
|
|
15 |
|
|
15 |
|
|
15 |
|
|
|
|
Banking offices |
|
181 |
|
|
182 |
|
|
186 |
|
|
187 |
|
|
187 |
|
|
|
|
(1) Excludes mortgage loans
held-for-sale.
(2) Net revenue includes net interest income and
non-interest income.
(3) See “Supplemental Non-GAAP Financial
Measures/Ratios” at Table 18 for additional information on this
performance measure/ratio.
(4) The net overhead ratio is calculated by netting
total non-interest expense and total non-interest income,
annualizing this amount, and dividing by that period’s total
average assets. A lower ratio indicates a higher degree of
efficiency.
(5) Capital ratios for current quarter-end are
estimated.
(6) The allowance for credit losses includes both
the allowance for loan losses and the allowance for unfunded
lending-related commitments. Effective January 1, 2020, the
allowance for credit losses also includes the allowance for
investment securities as a result of the adoption of Accounting
Standard Update ("ASU") 2016-13, Financial Instruments - Credit
Losses.
WINTRUST FINANCIAL CORPORATION
Key Operating Measures
Wintrust’s key operating measures and growth
rates for the fourth quarter of 2020, as compared to the third
quarter of 2020 (sequential quarter) and fourth quarter of 2019
(linked quarter), are shown in the table below:
|
|
Three Months Ended |
%
or(1) basis point
(bp)
change from 3rd
Quarter 2020
|
|
% or basis point
(bp) change from 4th
Quarter 2019
|
(Dollars in thousands, except per share data) |
|
Dec 31, 2020 |
|
Sep 30, 2020 |
|
Dec 31, 2019 |
|
Net income |
|
$ |
101,204 |
|
|
$ |
107,315 |
|
|
$ |
85,964 |
|
(6 |
) |
% |
|
18 |
|
% |
Pre-tax
income, excluding provision for credit losses (non-GAAP)
(2) |
|
135,891 |
|
|
162,310 |
|
|
124,508 |
|
(16 |
) |
|
|
9 |
|
|
Net
income per common share – diluted |
|
1.63 |
|
|
1.67 |
|
|
1.44 |
|
(2 |
) |
|
|
13 |
|
|
Net
revenue (3) |
|
417,758 |
|
|
426,529 |
|
|
374,099 |
|
(2 |
) |
|
|
12 |
|
|
Net
interest income |
|
259,397 |
|
|
255,936 |
|
|
261,879 |
|
1 |
|
|
|
(1 |
) |
|
Net
interest margin |
|
2.53 |
% |
|
2.56 |
% |
|
3.17 |
% |
(3 |
) |
bps |
|
(64 |
) |
bps |
Net
interest margin - fully taxable equivalent (non-GAAP)
(2) |
|
2.54 |
|
|
2.57 |
|
|
3.19 |
|
(3 |
) |
|
|
(65 |
) |
|
Net
overhead ratio (4) |
|
1.12 |
|
|
0.87 |
|
|
1.53 |
|
25 |
|
|
|
(41 |
) |
|
Return on
average assets |
|
0.92 |
|
|
0.99 |
|
|
0.96 |
|
(7 |
) |
|
|
(4 |
) |
|
Return on
average common equity |
|
10.30 |
|
|
10.66 |
|
|
9.52 |
|
(36 |
) |
|
|
78 |
|
|
Return on average tangible common equity (non-GAAP)
(2) |
|
12.95 |
|
|
13.43 |
|
|
12.17 |
|
(48 |
) |
|
|
78 |
|
|
At end of period |
|
|
|
|
|
|
|
|
|
|
|
Total
assets |
|
$ |
45,080,768 |
|
|
$ |
43,731,718 |
|
|
$ |
36,620,583 |
|
12 |
|
% |
|
23 |
|
% |
Total
loans (5) |
|
32,079,073 |
|
|
32,135,555 |
|
|
26,800,290 |
|
(1 |
) |
|
|
20 |
|
|
Total
deposits |
|
37,092,651 |
|
|
35,844,422 |
|
|
30,107,138 |
|
16 |
|
|
|
23 |
|
|
Total shareholders’ equity |
|
4,115,995 |
|
|
4,074,089 |
|
|
3,691,250 |
|
13 |
|
|
|
12 |
|
|
(1) Period-end balance sheet
percentage changes are annualized.
(2) See "Supplemental Non-GAAP Financial
Measures/Ratios" at Table 18 for additional information on this
performance measure/ratio.
(3) Net revenue is net interest income plus
non-interest income.
(4) The net overhead ratio is calculated by netting
total non-interest expense and total non-interest income,
annualizing this amount, and dividing by that period's average
total assets. A lower ratio indicates a higher degree of
efficiency.
(5) Excludes mortgage loans held-for-sale.
Certain returns, yields, performance ratios, or
quarterly growth rates are “annualized” in this presentation to
represent an annual time period. This is done for analytical
purposes to better discern, for decision-making purposes,
underlying performance trends when compared to full-year or
year-over-year amounts. For example, a 5% growth rate for a quarter
would represent an annualized 20% growth rate. Additional
supplemental financial information showing quarterly trends can be
found on the Company’s website at www.wintrust.com by
choosing “Financial Reports” under the “Investor Relations”
heading, and then choosing “Financial Highlights.”
WINTRUST FINANCIAL CORPORATION AND
SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CONDITION
|
|
(Unaudited) |
|
(Unaudited) |
|
(Unaudited) |
|
(Unaudited) |
|
|
|
|
Dec 31, |
|
Sep 30, |
|
Jun 30, |
|
Mar 31, |
|
Dec 31, |
(In
thousands) |
|
2020 |
|
2020 |
|
2020 |
|
2020 |
|
2019 |
Assets |
|
|
|
|
|
|
|
|
|
|
Cash and due from banks |
|
$ |
322,415 |
|
|
$ |
308,639 |
|
|
$ |
344,999 |
|
|
$ |
349,118 |
|
|
$ |
286,167 |
|
Federal
funds sold and securities purchased under resale agreements |
|
59 |
|
|
56 |
|
|
58 |
|
|
309 |
|
|
309 |
|
Interest-bearing deposits with banks |
|
4,802,527 |
|
|
3,825,823 |
|
|
4,015,072 |
|
|
1,943,743 |
|
|
2,164,560 |
|
Available-for-sale securities, at fair value |
|
3,055,839 |
|
|
2,946,459 |
|
|
3,194,961 |
|
|
3,570,959 |
|
|
3,106,214 |
|
Held-to-maturity securities, at amortized cost |
|
579,138 |
|
|
560,267 |
|
|
728,465 |
|
|
865,376 |
|
|
1,134,400 |
|
Trading
account securities |
|
671 |
|
|
1,720 |
|
|
890 |
|
|
2,257 |
|
|
1,068 |
|
Equity
securities with readily determinable fair value |
|
90,862 |
|
|
54,398 |
|
|
52,460 |
|
|
47,310 |
|
|
50,840 |
|
Federal
Home Loan Bank and Federal Reserve Bank stock |
|
135,588 |
|
|
135,568 |
|
|
135,571 |
|
|
134,546 |
|
|
100,739 |
|
Brokerage
customer receivables |
|
17,436 |
|
|
16,818 |
|
|
14,623 |
|
|
16,293 |
|
|
16,573 |
|
Mortgage
loans held-for-sale |
|
1,272,090 |
|
|
959,671 |
|
|
833,163 |
|
|
656,934 |
|
|
377,313 |
|
Loans,
net of unearned income |
|
32,079,073 |
|
|
32,135,555 |
|
|
31,402,903 |
|
|
27,807,321 |
|
|
26,800,290 |
|
Allowance
for loan losses |
|
(319,374 |
) |
|
(325,959 |
) |
|
(313,510 |
) |
|
(216,050 |
) |
|
(156,828 |
) |
Net loans |
|
31,759,699 |
|
|
31,809,596 |
|
|
31,089,393 |
|
|
27,591,271 |
|
|
26,643,462 |
|
Premises
and equipment, net |
|
768,808 |
|
|
774,288 |
|
|
769,909 |
|
|
764,583 |
|
|
754,328 |
|
Lease
investments, net |
|
242,434 |
|
|
230,373 |
|
|
237,040 |
|
|
207,147 |
|
|
231,192 |
|
Accrued
interest receivable and other assets |
|
1,351,455 |
|
|
1,424,728 |
|
|
1,437,832 |
|
|
1,460,168 |
|
|
1,061,141 |
|
Trade
date securities receivable |
|
— |
|
|
— |
|
|
— |
|
|
502,207 |
|
|
— |
|
Goodwill |
|
645,707 |
|
|
644,644 |
|
|
644,213 |
|
|
643,441 |
|
|
645,220 |
|
Other
intangible assets |
|
36,040 |
|
|
38,670 |
|
|
41,368 |
|
|
44,185 |
|
|
47,057 |
|
Total assets |
|
$ |
45,080,768 |
|
|
$ |
43,731,718 |
|
|
$ |
43,540,017 |
|
|
$ |
38,799,847 |
|
|
$ |
36,620,583 |
|
Liabilities and Shareholders’ Equity |
|
|
|
|
|
|
|
|
|
|
Deposits: |
|
|
|
|
|
|
|
|
|
|
Non-interest bearing |
|
$ |
11,748,455 |
|
|
$ |
10,409,747 |
|
|
$ |
10,204,791 |
|
|
$ |
7,556,755 |
|
|
$ |
7,216,758 |
|
Interest bearing |
|
25,344,196 |
|
|
25,434,675 |
|
|
25,447,083 |
|
|
23,904,905 |
|
|
22,890,380 |
|
Total deposits |
|
37,092,651 |
|
|
35,844,422 |
|
|
35,651,874 |
|
|
31,461,660 |
|
|
30,107,138 |
|
Federal
Home Loan Bank advances |
|
1,228,429 |
|
|
1,228,422 |
|
|
1,228,416 |
|
|
1,174,894 |
|
|
674,870 |
|
Other
borrowings |
|
518,928 |
|
|
507,395 |
|
|
508,535 |
|
|
487,503 |
|
|
418,174 |
|
Subordinated notes |
|
436,506 |
|
|
436,385 |
|
|
436,298 |
|
|
436,179 |
|
|
436,095 |
|
Junior
subordinated debentures |
|
253,566 |
|
|
253,566 |
|
|
253,566 |
|
|
253,566 |
|
|
253,566 |
|
Trade
date securities payable |
|
200,907 |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
Accrued
interest payable and other liabilities |
|
1,233,786 |
|
|
1,387,439 |
|
|
1,471,110 |
|
|
1,285,652 |
|
|
1,039,490 |
|
Total liabilities |
|
40,964,773 |
|
|
39,657,629 |
|
|
39,549,799 |
|
|
35,099,454 |
|
|
32,929,333 |
|
Shareholders’ Equity: |
|
|
|
|
|
|
|
|
|
|
Preferred stock |
|
412,500 |
|
|
412,500 |
|
|
412,500 |
|
|
125,000 |
|
|
125,000 |
|
Common stock |
|
58,473 |
|
|
58,323 |
|
|
58,294 |
|
|
58,266 |
|
|
57,951 |
|
Surplus |
|
1,649,990 |
|
|
1,647,049 |
|
|
1,643,864 |
|
|
1,652,063 |
|
|
1,650,278 |
|
Treasury stock |
|
(100,363 |
) |
|
(44,891 |
) |
|
(44,891 |
) |
|
(44,891 |
) |
|
(6,931 |
) |
Retained earnings |
|
2,080,013 |
|
|
2,001,949 |
|
|
1,921,048 |
|
|
1,917,558 |
|
|
1,899,630 |
|
Accumulated other comprehensive income (loss) |
|
15,382 |
|
|
(841 |
) |
|
(597 |
) |
|
(7,603 |
) |
|
(34,678 |
) |
Total shareholders’ equity |
|
4,115,995 |
|
|
4,074,089 |
|
|
3,990,218 |
|
|
3,700,393 |
|
|
3,691,250 |
|
Total liabilities and shareholders’ equity |
|
$ |
45,080,768 |
|
|
$ |
43,731,718 |
|
|
$ |
43,540,017 |
|
|
$ |
38,799,847 |
|
|
$ |
36,620,583 |
|
WINTRUST FINANCIAL CORPORATION AND
SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED)
|
Three Months Ended |
Years Ended |
(In
thousands, except per share data) |
Dec 31, 2020 |
|
Sep 30, 2020 |
|
Jun 30, 2020 |
|
Mar 31, 2020 |
|
Dec 31, 2019 |
Dec 31, 2020 |
|
Dec 31, 2019 |
Interest income |
|
|
|
|
|
|
|
|
|
|
|
|
Interest and fees on loans |
$ |
280,185 |
|
|
$ |
280,479 |
|
|
$ |
294,746 |
|
|
$ |
301,839 |
|
|
$ |
308,055 |
|
$ |
1,157,249 |
|
|
$ |
1,228,480 |
|
Mortgage loans held-for-sale |
6,357 |
|
|
5,791 |
|
|
4,764 |
|
|
3,165 |
|
|
3,201 |
|
20,077 |
|
|
11,992 |
|
Interest-bearing deposits with banks |
1,294 |
|
|
1,181 |
|
|
1,310 |
|
|
4,768 |
|
|
8,971 |
|
8,553 |
|
|
29,803 |
|
Federal funds sold and securities purchased under resale
agreements |
— |
|
|
— |
|
|
16 |
|
|
86 |
|
|
390 |
|
102 |
|
|
700 |
|
Investment securities |
18,243 |
|
|
21,819 |
|
|
27,105 |
|
|
32,467 |
|
|
27,611 |
|
99,634 |
|
|
108,046 |
|
Trading account securities |
11 |
|
|
6 |
|
|
13 |
|
|
7 |
|
|
6 |
|
37 |
|
|
39 |
|
Federal Home Loan Bank and Federal Reserve Bank stock |
1,775 |
|
|
1,774 |
|
|
1,765 |
|
|
1,577 |
|
|
1,328 |
|
6,891 |
|
|
5,416 |
|
Brokerage customer receivables |
116 |
|
|
106 |
|
|
97 |
|
|
158 |
|
|
169 |
|
477 |
|
|
666 |
|
Total interest income |
307,981 |
|
|
311,156 |
|
|
329,816 |
|
|
344,067 |
|
|
349,731 |
|
1,293,020 |
|
|
1,385,142 |
|
Interest expense |
|
|
|
|
|
|
|
|
|
|
|
|
Interest on deposits |
32,602 |
|
|
39,084 |
|
|
50,057 |
|
|
67,435 |
|
|
74,724 |
|
189,178 |
|
|
278,892 |
|
Interest on Federal Home Loan Bank advances |
4,952 |
|
|
4,947 |
|
|
4,934 |
|
|
3,360 |
|
|
1,461 |
|
18,193 |
|
|
9,878 |
|
Interest on other borrowings |
2,779 |
|
|
3,012 |
|
|
3,436 |
|
|
3,546 |
|
|
3,273 |
|
12,773 |
|
|
13,897 |
|
Interest on subordinated notes |
5,509 |
|
|
5,474 |
|
|
5,506 |
|
|
5,472 |
|
|
5,504 |
|
21,961 |
|
|
15,555 |
|
Interest on junior subordinated debentures |
2,742 |
|
|
2,703 |
|
|
2,752 |
|
|
2,811 |
|
|
2,890 |
|
11,008 |
|
|
12,001 |
|
Total interest expense |
48,584 |
|
|
55,220 |
|
|
66,685 |
|
|
82,624 |
|
|
87,852 |
|
253,113 |
|
|
330,223 |
|
Net interest income |
259,397 |
|
|
255,936 |
|
|
263,131 |
|
|
261,443 |
|
|
261,879 |
|
1,039,907 |
|
|
1,054,919 |
|
Provision for credit losses |
1,180 |
|
|
25,026 |
|
|
135,053 |
|
|
52,961 |
|
|
7,826 |
|
214,220 |
|
|
53,864 |
|
Net interest income after provision for credit losses |
258,217 |
|
|
230,910 |
|
|
128,078 |
|
|
208,482 |
|
|
254,053 |
|
825,687 |
|
|
1,001,055 |
|
Non-interest income |
|
|
|
|
|
|
|
|
|
|
|
|
Wealth management |
26,802 |
|
|
24,957 |
|
|
22,636 |
|
|
25,941 |
|
|
24,999 |
|
100,336 |
|
|
97,114 |
|
Mortgage banking |
86,819 |
|
|
108,544 |
|
|
102,324 |
|
|
48,326 |
|
|
47,860 |
|
346,013 |
|
|
154,293 |
|
Service charges on deposit accounts |
11,841 |
|
|
11,497 |
|
|
10,420 |
|
|
11,265 |
|
|
10,973 |
|
45,023 |
|
|
39,070 |
|
Gains (losses) on investment securities, net |
1,214 |
|
|
411 |
|
|
808 |
|
|
(4,359 |
) |
|
587 |
|
(1,926 |
) |
|
3,525 |
|
Fees from covered call options |
— |
|
|
— |
|
|
— |
|
|
2,292 |
|
|
1,243 |
|
2,292 |
|
|
3,670 |
|
Trading (losses) gains, net |
(102 |
) |
|
183 |
|
|
(634 |
) |
|
(451 |
) |
|
46 |
|
(1,004 |
) |
|
(158 |
) |
Operating lease income, net |
12,118 |
|
|
11,717 |
|
|
11,785 |
|
|
11,984 |
|
|
12,487 |
|
47,604 |
|
|
47,041 |
|
Other |
19,669 |
|
|
13,284 |
|
|
14,654 |
|
|
18,244 |
|
|
14,025 |
|
65,851 |
|
|
62,617 |
|
Total non-interest income |
158,361 |
|
|
170,593 |
|
|
161,993 |
|
|
113,242 |
|
|
112,220 |
|
604,189 |
|
|
407,172 |
|
Non-interest expense |
|
|
|
|
|
|
|
|
|
|
|
|
Salaries and employee benefits |
171,116 |
|
|
164,042 |
|
|
154,156 |
|
|
136,762 |
|
|
145,941 |
|
626,076 |
|
|
546,420 |
|
Equipment |
20,565 |
|
|
17,251 |
|
|
15,846 |
|
|
14,834 |
|
|
14,485 |
|
68,496 |
|
|
52,328 |
|
Operating lease equipment depreciation |
9,938 |
|
|
9,425 |
|
|
9,292 |
|
|
9,260 |
|
|
9,766 |
|
37,915 |
|
|
35,760 |
|
Occupancy, net |
19,687 |
|
|
15,830 |
|
|
16,893 |
|
|
17,547 |
|
|
17,132 |
|
69,957 |
|
|
64,289 |
|
Data processing |
5,728 |
|
|
5,689 |
|
|
10,406 |
|
|
8,373 |
|
|
7,569 |
|
30,196 |
|
|
27,820 |
|
Advertising and marketing |
9,850 |
|
|
7,880 |
|
|
7,704 |
|
|
10,862 |
|
|
12,517 |
|
36,296 |
|
|
48,595 |
|
Professional fees |
6,530 |
|
|
6,488 |
|
|
7,687 |
|
|
6,721 |
|
|
7,650 |
|
27,426 |
|
|
27,471 |
|
Amortization of other intangible assets |
2,634 |
|
|
2,701 |
|
|
2,820 |
|
|
2,863 |
|
|
3,017 |
|
11,018 |
|
|
11,844 |
|
FDIC insurance |
7,016 |
|
|
6,772 |
|
|
7,081 |
|
|
4,135 |
|
|
1,348 |
|
25,004 |
|
|
9,199 |
|
OREO expense, net |
(114 |
) |
|
(168 |
) |
|
237 |
|
|
(876 |
) |
|
536 |
|
(921 |
) |
|
3,628 |
|
Other |
28,917 |
|
|
28,309 |
|
|
27,246 |
|
|
24,160 |
|
|
29,630 |
|
108,632 |
|
|
100,772 |
|
Total non-interest expense |
281,867 |
|
|
264,219 |
|
|
259,368 |
|
|
234,641 |
|
|
249,591 |
|
1,040,095 |
|
|
928,126 |
|
Income before taxes |
134,711 |
|
|
137,284 |
|
|
30,703 |
|
|
87,083 |
|
|
116,682 |
|
389,781 |
|
|
480,101 |
|
Income tax expense |
33,507 |
|
|
29,969 |
|
|
9,044 |
|
|
24,271 |
|
|
30,718 |
|
96,791 |
|
|
124,404 |
|
Net income |
$ |
101,204 |
|
|
$ |
107,315 |
|
|
$ |
21,659 |
|
|
$ |
62,812 |
|
|
$ |
85,964 |
|
$ |
292,990 |
|
|
$ |
355,697 |
|
Preferred stock dividends |
6,991 |
|
|
10,286 |
|
|
2,050 |
|
|
2,050 |
|
|
2,050 |
|
21,377 |
|
|
8,200 |
|
Net income applicable to common shares |
$ |
94,213 |
|
|
$ |
97,029 |
|
|
$ |
19,609 |
|
|
$ |
60,762 |
|
|
$ |
83,914 |
|
$ |
271,613 |
|
|
$ |
347,497 |
|
Net income per common share - Basic |
$ |
1.64 |
|
|
$ |
1.68 |
|
|
$ |
0.34 |
|
|
$ |
1.05 |
|
|
$ |
1.46 |
|
$ |
4.72 |
|
|
$ |
6.11 |
|
Net income per common share - Diluted |
$ |
1.63 |
|
|
$ |
1.67 |
|
|
$ |
0.34 |
|
|
$ |
1.04 |
|
|
$ |
1.44 |
|
$ |
4.68 |
|
|
$ |
6.03 |
|
Cash dividends declared per common share |
$ |
0.28 |
|
|
$ |
0.28 |
|
|
$ |
0.28 |
|
|
$ |
0.28 |
|
|
$ |
0.25 |
|
$ |
1.12 |
|
|
$ |
1.00 |
|
Weighted average common shares outstanding |
|
57,309 |
|
|
|
57,597 |
|
|
|
57,567 |
|
|
|
57,620 |
|
|
|
57,538 |
|
|
57,523 |
|
|
|
56,857 |
|
Dilutive potential common shares |
588 |
|
|
449 |
|
|
414 |
|
|
575 |
|
|
874 |
|
496 |
|
|
762 |
|
Average common shares and dilutive common shares |
57,897 |
|
|
58,046 |
|
|
57,981 |
|
|
58,195 |
|
|
58,412 |
|
58,019 |
|
|
57,619 |
|
TABLE 1: LOAN PORTFOLIO MIX AND GROWTH RATES AND
COMMERCIAL REAL ESTATE BY STATE
|
|
|
|
|
|
|
|
|
|
% Growth From |
(Dollars in thousands) |
Dec 31, 2020 |
|
Sep 30, 2020 |
|
Jun 30, 2020 |
|
Mar 31, 2020 |
|
Dec 31, 2019 |
Sep 30, 2020 (1) |
|
Dec 31, 2019 |
Balance: |
|
|
|
|
|
|
|
|
|
|
|
|
Mortgage loans held-for-sale, excluding early buy-out exercised
loans guaranteed by U.S. Government Agencies |
$ |
927,307 |
|
|
$ |
862,924 |
|
|
$ |
814,667 |
|
|
$ |
642,386 |
|
|
$ |
361,309 |
|
30 |
% |
|
157 |
% |
Mortgage loans held-for-sale, early buy-out exercised loans
guaranteed by U.S. Government Agencies |
344,783 |
|
|
96,747 |
|
|
18,496 |
|
|
14,548 |
|
|
16,004 |
|
1020 |
|
|
2054 |
|
Total mortgage loans held-for-sale |
$ |
1,272,090 |
|
|
$ |
959,671 |
|
|
$ |
833,163 |
|
|
$ |
656,934 |
|
|
$ |
377,313 |
|
130 |
% |
|
237 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial |
|
|
|
|
|
|
|
|
|
|
|
|
Commercial, industrial, and other |
$ |
9,240,046 |
|
|
$ |
8,897,986 |
|
|
$ |
8,523,864 |
|
|
$ |
9,025,886 |
|
|
$ |
8,285,920 |
|
15 |
% |
|
12 |
% |
Commercial PPP loans |
2,715,921 |
|
|
3,379,013 |
|
|
3,335,368 |
|
|
— |
|
|
— |
|
(78 |
) |
|
100 |
|
Commercial real estate |
|
|
|
|
|
|
|
|
|
|
|
|
Construction and development |
1,371,802 |
|
|
1,333,149 |
|
|
1,285,282 |
|
|
1,237,274 |
|
|
1,200,783 |
|
12 |
|
|
14 |
|
Non-construction |
7,122,330 |
|
|
7,089,993 |
|
|
6,915,463 |
|
|
6,948,257 |
|
|
6,819,493 |
|
2 |
|
|
4 |
|
Home equity |
425,263 |
|
|
446,274 |
|
|
466,596 |
|
|
494,655 |
|
|
513,066 |
|
(19 |
) |
|
(17 |
) |
Residential real estate |
|
|
|
|
|
|
|
|
|
|
|
|
Residential real estate loans for investment |
1,214,744 |
|
|
1,143,908 |
|
|
1,186,768 |
|
|
1,244,690 |
|
|
1,231,123 |
|
25 |
|
|
(1 |
) |
Residential mortgage loans, early buy-out eligible loans guaranteed
by U.S. Government Agencies |
44,854 |
|
|
240,902 |
|
|
240,661 |
|
|
132,699 |
|
|
123,098 |
|
(324 |
) |
|
(64 |
) |
Premium Finance receivables |
|
|
|
|
|
|
|
|
|
|
|
|
Commercial insurance |
4,054,489 |
|
|
4,060,144 |
|
|
3,999,774 |
|
|
3,465,055 |
|
|
3,442,027 |
|
(1 |
) |
|
18 |
|
Life insurance |
5,857,436 |
|
|
5,488,832 |
|
|
5,400,802 |
|
|
5,221,639 |
|
|
5,074,602 |
|
27 |
|
|
15 |
|
Consumer and other |
32,188 |
|
|
55,354 |
|
|
48,325 |
|
|
37,166 |
|
|
110,178 |
|
(166 |
) |
|
(71 |
) |
Total loans, net of unearned income |
$ |
32,079,073 |
|
|
$ |
32,135,555 |
|
|
$ |
31,402,903 |
|
|
$ |
27,807,321 |
|
|
$ |
26,800,290 |
|
(1 |
)% |
|
20 |
% |
Mix: |
|
|
|
|
|
|
|
|
|
|
|
|
Mortgage loans held-for-sale, excluding early buy-out exercised
loans guaranteed by U.S. Government Agencies |
73 |
% |
|
90 |
% |
|
98 |
% |
|
98 |
% |
|
96 |
% |
|
|
|
Mortgage loans held-for-sale, early buy-out exercised loans
guaranteed by U.S. Government Agencies |
27 |
|
|
10 |
|
|
2 |
|
|
2 |
|
|
4 |
|
|
|
|
Total mortgage loans held-for-sale |
100 |
% |
|
100 |
% |
|
100 |
% |
|
100 |
% |
|
100 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial |
|
|
|
|
|
|
|
|
|
|
|
|
Commercial, industrial, and other |
29 |
% |
|
28 |
% |
|
28 |
% |
|
32 |
% |
|
31 |
% |
|
|
|
Commercial PPP loans |
8 |
|
|
11 |
|
|
11 |
|
|
— |
|
|
— |
|
|
|
|
Commercial real estate |
|
|
|
|
|
|
|
|
|
|
|
|
Construction and development |
4 |
|
|
4 |
|
|
4 |
|
|
4 |
|
|
4 |
|
|
|
|
Non-construction |
22 |
|
|
22 |
|
|
22 |
|
|
25 |
|
|
26 |
|
|
|
|
Home equity |
1 |
|
|
1 |
|
|
1 |
|
|
2 |
|
|
2 |
|
|
|
|
Residential real estate |
|
|
|
|
|
|
|
|
|
|
|
|
Residential real estate loans for investment |
4 |
|
|
3 |
|
|
3 |
|
|
4 |
|
|
5 |
|
|
|
|
Residential mortgage loans, early buy-out eligible loans guaranteed
by U.S. Government Agencies |
1 |
|
|
1 |
|
|
1 |
|
|
1 |
|
|
0 |
|
|
|
|
Premium Finance receivables |
|
|
|
|
|
|
|
|
|
|
|
|
Commercial insurance |
13 |
|
|
13 |
|
|
13 |
|
|
13 |
|
|
13 |
|
|
|
|
Life insurance |
18 |
|
|
17 |
|
|
17 |
|
|
19 |
|
|
19 |
|
|
|
|
Consumer and other |
0 |
|
|
0 |
|
|
0 |
|
|
0 |
|
|
0 |
|
|
|
|
Total loans, net of unearned income |
100 |
% |
|
100 |
% |
|
100 |
% |
|
100 |
% |
|
100 |
% |
|
|
|
(1) Annualized.
|
Dec 31, 2020 |
|
|
Sep 30, 2020 |
|
|
|
Jun 30, 2020 |
|
|
Mar 31, 2020 |
|
Dec 31, 2019 |
(Dollars in thousands) |
|
Balance |
|
% of Total
Balance |
|
|
|
Balance |
|
% of
Total
Balance |
|
|
|
Balance |
|
% of
Total
Balance |
|
|
|
Balance |
|
% of
Total
Balance |
|
|
|
Balance |
|
% of
Total
Balance |
|
Commercial real estate - collateral location by
state: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Illinois |
$ |
6,243,651 |
|
73.5 |
% |
|
$ |
6,270,584 |
|
74.4 |
% |
|
$ |
6,198,486 |
|
75.6 |
% |
|
$ |
6,171,606 |
|
75.4 |
% |
|
$ |
6,176,353 |
|
77.0 |
% |
Wisconsin |
779,390 |
|
9.2 |
|
|
783,241 |
|
9.3 |
|
|
760,839 |
|
9.3 |
|
|
793,145 |
|
9.7 |
|
|
744,975 |
|
9.3 |
|
Total primary markets |
$ |
7,023,041 |
|
82.7 |
% |
|
$ |
7,053,825 |
|
83.7 |
% |
|
$ |
6,959,325 |
|
84.9 |
% |
|
$ |
6,964,751 |
|
85.1 |
% |
|
$ |
6,921,328 |
|
86.3 |
% |
Indiana |
301,177 |
|
3.5 |
|
|
265,905 |
|
3.2 |
|
|
249,423 |
|
3.0 |
|
|
249,680 |
|
3.1 |
|
|
218,963 |
|
2.7 |
|
Florida |
131,259 |
|
1.5 |
|
|
133,602 |
|
1.6 |
|
|
133,810 |
|
1.6 |
|
|
126,786 |
|
1.5 |
|
|
114,629 |
|
1.4 |
|
Arizona |
63,494 |
|
0.8 |
|
|
79,086 |
|
0.9 |
|
|
78,135 |
|
1.0 |
|
|
72,214 |
|
0.9 |
|
|
64,022 |
|
0.8 |
|
California |
85,624 |
|
1.0 |
|
|
82,852 |
|
1.0 |
|
|
81,634 |
|
1.0 |
|
|
63,883 |
|
0.8 |
|
|
64,345 |
|
0.8 |
|
Texas |
79,406 |
|
0.9 |
|
|
55,229 |
|
0.7 |
|
|
48,082 |
|
0.6 |
|
|
59,647 |
|
0.8 |
|
|
29,586 |
|
0.5 |
|
Other |
810,131 |
|
9.6 |
|
|
752,643 |
|
8.9 |
|
|
650,336 |
|
7.9 |
|
|
648,570 |
|
7.8 |
|
|
607,403 |
|
7.5 |
|
Total commercial real estate |
$ |
8,494,132 |
|
100 |
% |
|
$ |
8,423,142 |
|
100 |
% |
|
$ |
8,200,745 |
|
100 |
% |
|
$ |
8,185,531 |
|
100 |
% |
|
$ |
8,020,276 |
|
100 |
% |
TABLE 2: DEPOSIT PORTFOLIO MIX AND GROWTH
RATES
|
|
|
|
|
|
|
|
|
|
% Growth From |
(Dollars in thousands) |
Dec 31, 2020 |
|
Sep 30, 2020 |
|
Jun 30, 2020 |
|
Mar 31, 2020 |
|
Dec 31, 2019 |
Sep 30, 2020 (1) |
|
Dec 31, 2019 |
Balance: |
|
|
|
|
|
|
|
|
|
|
|
|
Non-interest bearing |
$ |
11,748,455 |
|
|
$ |
10,409,747 |
|
|
$ |
10,204,791 |
|
|
$ |
7,556,755 |
|
|
$ |
7,216,758 |
|
51 |
% |
|
63 |
% |
NOW and interest-bearing demand deposits |
3,349,021 |
|
|
3,294,071 |
|
|
3,440,348 |
|
|
3,181,159 |
|
|
3,093,159 |
|
7 |
|
|
8 |
|
Wealth management deposits (2) |
4,138,712 |
|
|
4,235,583 |
|
|
4,433,020 |
|
|
3,936,968 |
|
|
3,123,063 |
|
(9 |
) |
|
33 |
|
Money market |
9,348,806 |
|
|
9,423,653 |
|
|
9,288,976 |
|
|
8,114,659 |
|
|
7,854,189 |
|
(3 |
) |
|
19 |
|
Savings |
3,531,029 |
|
|
3,415,073 |
|
|
3,447,352 |
|
|
3,282,340 |
|
|
3,196,698 |
|
14 |
|
|
10 |
|
Time certificates of deposit |
4,976,628 |
|
|
5,066,295 |
|
|
4,837,387 |
|
|
5,389,779 |
|
|
5,623,271 |
|
(7 |
) |
|
(11 |
) |
Total deposits |
$ |
37,092,651 |
|
|
$ |
35,844,422 |
|
|
$ |
35,651,874 |
|
|
$ |
31,461,660 |
|
|
$ |
30,107,138 |
|
14 |
% |
|
23 |
% |
Mix: |
|
|
|
|
|
|
|
|
|
|
|
|
Non-interest bearing |
32 |
% |
|
29 |
% |
|
29 |
% |
|
24 |
% |
|
24 |
% |
|
|
|
NOW and interest-bearing demand deposits |
9 |
|
|
9 |
|
|
10 |
|
|
10 |
|
|
10 |
|
|
|
|
Wealth management deposits (2) |
11 |
|
|
12 |
|
|
12 |
|
|
13 |
|
|
10 |
|
|
|
|
Money market |
25 |
|
|
26 |
|
|
25 |
|
|
26 |
|
|
26 |
|
|
|
|
Savings |
10 |
|
|
10 |
|
|
10 |
|
|
10 |
|
|
11 |
|
|
|
|
Time certificates of deposit |
13 |
|
|
14 |
|
|
14 |
|
|
17 |
|
|
19 |
|
|
|
|
Total deposits |
100 |
% |
|
100 |
% |
|
100 |
% |
|
100 |
% |
|
100 |
% |
|
|
|
(1) Annualized.
(2) Represents
deposit balances of the Company’s subsidiary banks from brokerage
customers of Wintrust Investments, Chicago Deferred Exchange
Company, LLC ("CDEC"), trust and asset management customers of the
Company and brokerage customers from unaffiliated companies which
have been placed into deposit accounts.
TABLE 3: TIME CERTIFICATES OF DEPOSIT
MATURITY/RE-PRICING ANALYSIS
As of December 31, 2020
(Dollars in thousands) |
|
Total Time
Certificates of
Deposit |
|
Weighted-Average
Rate of Maturing
Time Certificates
of Deposit (1) |
1-3 months |
|
$ |
872,282 |
|
|
1.74 |
% |
4-6 months |
|
1,327,476 |
|
|
1.82 |
|
7-9 months |
|
948,251 |
|
|
1.57 |
|
10-12 months |
|
760,907 |
|
|
1.19 |
|
13-18 months |
|
628,017 |
|
|
0.85 |
|
19-24 months |
|
224,885 |
|
|
0.98 |
|
24+ months |
|
214,810 |
|
|
1.02 |
|
Total |
|
$ |
4,976,628 |
|
|
1.47 |
% |
(1) Weighted-average rate excludes the impact of
purchase accounting fair value adjustments.
TABLE 4: QUARTERLY AVERAGE BALANCES
|
|
Average Balance for three months ended, |
|
|
Dec 31, |
|
Sep 30, |
|
Jun 30, |
|
Mar 31, |
|
Dec 31, |
(In
thousands) |
|
2020 |
|
2020 |
|
2020 |
|
2020 |
|
2019 |
Interest-bearing deposits with banks and cash equivalents
(1) |
|
$ |
4,381,040 |
|
|
$ |
3,411,164 |
|
|
$ |
3,240,167 |
|
|
$ |
1,418,809 |
|
|
$ |
2,206,251 |
|
Investment securities (2) |
|
3,534,594 |
|
|
3,789,422 |
|
|
4,309,471 |
|
|
4,780,709 |
|
|
3,909,699 |
|
FHLB and FRB stock |
|
135,569 |
|
|
135,567 |
|
|
135,360 |
|
|
114,829 |
|
|
94,843 |
|
Liquidity management assets (3) |
|
8,051,203 |
|
|
7,336,153 |
|
|
7,684,998 |
|
|
6,314,347 |
|
|
6,210,793 |
|
Other earning assets (3)(4) |
|
18,716 |
|
|
16,656 |
|
|
16,917 |
|
|
19,166 |
|
|
18,353 |
|
Mortgage loans held-for-sale |
|
893,395 |
|
|
822,908 |
|
|
705,702 |
|
|
403,262 |
|
|
381,878 |
|
Loans, net of unearned income (3)(5) |
|
31,783,279 |
|
|
31,634,608 |
|
|
30,336,626 |
|
|
26,936,728 |
|
|
26,137,722 |
|
Total earning assets (3) |
|
40,746,593 |
|
|
39,810,325 |
|
|
38,744,243 |
|
|
33,673,503 |
|
|
32,748,746 |
|
Allowance for loan and investment security losses
(6) |
|
(336,139 |
) |
|
(321,732 |
) |
|
(222,485 |
) |
|
(176,291 |
) |
|
(167,759 |
) |
Cash and due from banks |
|
344,536 |
|
|
345,438 |
|
|
352,423 |
|
|
321,982 |
|
|
316,631 |
|
Other assets |
|
3,055,015 |
|
|
3,128,813 |
|
|
3,168,548 |
|
|
2,806,296 |
|
|
2,747,572 |
|
Total assets |
|
$ |
43,810,005 |
|
|
$ |
42,962,844 |
|
|
$ |
42,042,729 |
|
|
$ |
36,625,490 |
|
|
$ |
35,645,190 |
|
|
|
|
|
|
|
|
|
|
|
|
NOW and interest-bearing demand deposits |
|
$ |
3,320,527 |
|
|
$ |
3,435,089 |
|
|
$ |
3,323,124 |
|
|
$ |
3,113,733 |
|
|
$ |
3,016,991 |
|
Wealth management deposits |
|
4,066,948 |
|
|
4,239,300 |
|
|
4,380,996 |
|
|
2,838,719 |
|
|
2,934,292 |
|
Money market accounts |
|
9,435,344 |
|
|
9,332,668 |
|
|
8,727,966 |
|
|
7,990,775 |
|
|
7,647,635 |
|
Savings accounts |
|
3,413,388 |
|
|
3,419,586 |
|
|
3,394,480 |
|
|
3,189,835 |
|
|
3,028,763 |
|
Time deposits |
|
5,043,558 |
|
|
4,900,839 |
|
|
5,104,701 |
|
|
5,526,407 |
|
|
5,682,449 |
|
Interest-bearing deposits |
|
25,279,765 |
|
|
25,327,482 |
|
|
24,931,267 |
|
|
22,659,469 |
|
|
22,310,130 |
|
Federal Home Loan Bank advances |
|
1,228,425 |
|
|
1,228,421 |
|
|
1,214,375 |
|
|
951,613 |
|
|
596,594 |
|
Other borrowings |
|
510,725 |
|
|
512,787 |
|
|
493,350 |
|
|
469,577 |
|
|
415,092 |
|
Subordinated notes |
|
436,433 |
|
|
436,323 |
|
|
436,226 |
|
|
436,119 |
|
|
436,025 |
|
Junior subordinated debentures |
|
253,566 |
|
|
253,566 |
|
|
253,566 |
|
|
253,566 |
|
|
253,566 |
|
Total interest-bearing liabilities |
|
27,708,914 |
|
|
27,758,579 |
|
|
27,328,784 |
|
|
24,770,344 |
|
|
24,011,407 |
|
Non-interest-bearing deposits |
|
10,874,912 |
|
|
9,988,769 |
|
|
9,607,528 |
|
|
7,235,177 |
|
|
7,128,166 |
|
Other liabilities |
|
1,175,893 |
|
|
1,180,594 |
|
|
1,197,571 |
|
|
909,800 |
|
|
883,433 |
|
Equity |
|
4,050,286 |
|
|
4,034,902 |
|
|
3,908,846 |
|
|
3,710,169 |
|
|
3,622,184 |
|
Total liabilities and shareholders’ equity |
|
$ |
43,810,005 |
|
|
$ |
42,962,844 |
|
|
$ |
42,042,729 |
|
|
$ |
36,625,490 |
|
|
$ |
35,645,190 |
|
|
|
|
|
|
|
|
|
|
|
|
Net free funds/contribution (7) |
|
$ |
13,037,679 |
|
|
$ |
12,051,746 |
|
|
$ |
11,415,459 |
|
|
$ |
8,903,159 |
|
|
$ |
8,737,339 |
|
(1) Includes interest-bearing
deposits from banks, federal funds sold and securities purchased
under resale agreements.
(2) Investment securities includes investment
securities classified as available-for-sale and held-to-maturity,
and equity securities with readily determinable fair values. Equity
securities without readily determinable fair values are included
within other assets.
(3) See "Supplemental Non-GAAP Financial
Measures/Ratios" at Table 18 for additional information on this
performance measure/ratio.
(4) Other earning assets include brokerage customer
receivables and trading account securities.
(5) Loans, net of unearned income, include
non-accrual loans.
(6) Effective January 1, 2020 this includes the
allowance for investment security losses as a result of the
adoption of ASU 2016-13, Financial Instruments - Credit
Losses.
(7) Net free funds are the difference between total
average earning assets and total average interest-bearing
liabilities. The estimated contribution to net interest margin from
net free funds is calculated using the rate paid for total
interest-bearing liabilities.
TABLE 5: QUARTERLY NET INTEREST INCOME
|
|
Net Interest Income for three months ended, |
|
|
Dec 31, |
|
Sep 30, |
|
Jun 30, |
|
Mar 31, |
|
Dec 31, |
(In
thousands) |
|
2020 |
|
2020 |
|
2020 |
|
2020 |
|
2019 |
Interest income: |
|
|
|
|
|
|
|
|
|
|
Interest-bearing deposits with banks and cash equivalents |
|
$ |
1,294 |
|
|
$ |
1,181 |
|
|
$ |
1,326 |
|
|
$ |
4,854 |
|
|
$ |
9,361 |
|
Investment securities |
|
18,773 |
|
|
22,365 |
|
|
27,643 |
|
|
33,018 |
|
|
28,184 |
|
FHLB and FRB stock |
|
1,775 |
|
|
1,774 |
|
|
1,765 |
|
|
1,577 |
|
|
1,328 |
|
Liquidity management assets (1) |
|
21,842 |
|
|
25,320 |
|
|
30,734 |
|
|
39,449 |
|
|
38,873 |
|
Other earning assets (1) |
|
130 |
|
|
113 |
|
|
113 |
|
|
167 |
|
|
176 |
|
Mortgage loans held-for-sale |
|
6,357 |
|
|
5,791 |
|
|
4,764 |
|
|
3,165 |
|
|
3,201 |
|
Loans, net of unearned income (1) |
|
280,509 |
|
|
280,960 |
|
|
295,322 |
|
|
302,699 |
|
|
308,947 |
|
Total interest income |
|
$ |
308,838 |
|
|
$ |
312,184 |
|
|
$ |
330,933 |
|
|
$ |
345,480 |
|
|
$ |
351,197 |
|
|
|
|
|
|
|
|
|
|
|
|
Interest expense: |
|
|
|
|
|
|
|
|
|
|
NOW and interest-bearing demand deposits |
|
$ |
1,074 |
|
|
$ |
1,342 |
|
|
$ |
1,561 |
|
|
$ |
3,665 |
|
|
$ |
4,622 |
|
Wealth management deposits |
|
7,436 |
|
|
7,662 |
|
|
7,244 |
|
|
6,935 |
|
|
7,867 |
|
Money market accounts |
|
3,740 |
|
|
7,245 |
|
|
13,140 |
|
|
22,363 |
|
|
25,603 |
|
Savings accounts |
|
773 |
|
|
2,104 |
|
|
3,840 |
|
|
5,790 |
|
|
6,145 |
|
Time deposits |
|
19,579 |
|
|
20,731 |
|
|
24,272 |
|
|
28,682 |
|
|
30,487 |
|
Interest-bearing deposits |
|
32,602 |
|
|
39,084 |
|
|
50,057 |
|
|
67,435 |
|
|
74,724 |
|
Federal Home Loan Bank advances |
|
4,952 |
|
|
4,947 |
|
|
4,934 |
|
|
3,360 |
|
|
1,461 |
|
Other borrowings |
|
2,779 |
|
|
3,012 |
|
|
3,436 |
|
|
3,546 |
|
|
3,273 |
|
Subordinated notes |
|
5,509 |
|
|
5,474 |
|
|
5,506 |
|
|
5,472 |
|
|
5,504 |
|
Junior subordinated debentures |
|
2,742 |
|
|
2,703 |
|
|
2,752 |
|
|
2,811 |
|
|
2,890 |
|
Total interest expense |
|
$ |
48,584 |
|
|
$ |
55,220 |
|
|
$ |
66,685 |
|
|
$ |
82,624 |
|
|
$ |
87,852 |
|
|
|
|
|
|
|
|
|
|
|
|
Less: Fully taxable-equivalent adjustment |
|
(857 |
) |
|
(1,028 |
) |
|
(1,117 |
) |
|
(1,413 |
) |
|
(1,466 |
) |
Net interest income (GAAP) (2) |
|
259,397 |
|
|
255,936 |
|
|
263,131 |
|
|
261,443 |
|
|
261,879 |
|
Fully taxable-equivalent adjustment |
|
857 |
|
|
1,028 |
|
|
1,117 |
|
|
1,413 |
|
|
1,466 |
|
Net interest income, fully taxable-equivalent (non-GAAP)
(2) |
|
$ |
260,254 |
|
|
$ |
256,964 |
|
|
$ |
264,248 |
|
|
$ |
262,856 |
|
|
$ |
263,345 |
|
(1) 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.
(2) See "Supplemental Non-GAAP Financial
Measures/Ratios" at Table 18 for additional information on this
performance measure/ratio.
TABLE 6: QUARTERLY NET INTEREST
MARGIN
|
|
Net Interest Margin for three months ended, |
|
|
Dec 31, 2020 |
|
Sep 30, 2020 |
|
Jun 30, 2020 |
|
Mar 31, 2020 |
|
Dec 31, 2019 |
Yield earned on: |
|
|
|
|
|
|
|
|
|
|
Interest-bearing deposits with banks and cash equivalents |
|
0.12 |
% |
|
0.14 |
% |
|
0.16 |
% |
|
1.38 |
% |
|
1.68 |
% |
Investment securities |
|
2.11 |
|
|
2.35 |
|
|
2.58 |
|
|
2.78 |
|
|
2.86 |
|
FHLB and FRB stock |
|
5.21 |
|
|
5.21 |
|
|
5.24 |
|
|
5.52 |
|
|
5.55 |
|
Liquidity management assets |
|
1.08 |
|
|
1.37 |
|
|
1.61 |
|
|
2.51 |
|
|
2.48 |
|
Other earning assets |
|
2.79 |
|
|
2.71 |
|
|
2.71 |
|
|
3.50 |
|
|
3.83 |
|
Mortgage loans held-for-sale |
|
2.83 |
|
|
2.80 |
|
|
2.72 |
|
|
3.16 |
|
|
3.33 |
|
Loans, net of unearned income |
|
3.51 |
|
|
3.53 |
|
|
3.92 |
|
|
4.52 |
|
|
4.69 |
|
Total earning assets |
|
3.02 |
% |
|
3.12 |
% |
|
3.44 |
% |
|
4.13 |
% |
|
4.25 |
% |
|
|
|
|
|
|
|
|
|
|
|
Rate paid on: |
|
|
|
|
|
|
|
|
|
|
NOW and interest-bearing demand deposits |
|
0.13 |
% |
|
0.16 |
% |
|
0.19 |
% |
|
0.47 |
% |
|
0.61 |
% |
Wealth management deposits |
|
0.73 |
|
|
0.72 |
|
|
0.67 |
|
|
0.98 |
|
|
1.06 |
|
Money market accounts |
|
0.16 |
|
|
0.31 |
|
|
0.61 |
|
|
1.13 |
|
|
1.33 |
|
Savings accounts |
|
0.09 |
|
|
0.24 |
|
|
0.45 |
|
|
0.73 |
|
|
0.80 |
|
Time deposits |
|
1.54 |
|
|
1.68 |
|
|
1.91 |
|
|
2.09 |
|
|
2.13 |
|
Interest-bearing deposits |
|
0.51 |
|
|
0.61 |
|
|
0.81 |
|
|
1.20 |
|
|
1.33 |
|
Federal Home Loan Bank advances |
|
1.60 |
|
|
1.60 |
|
|
1.63 |
|
|
1.42 |
|
|
0.97 |
|
Other borrowings |
|
2.16 |
|
|
2.34 |
|
|
2.80 |
|
|
3.04 |
|
|
3.13 |
|
Subordinated notes |
|
5.05 |
|
|
5.02 |
|
|
5.05 |
|
|
5.02 |
|
|
5.05 |
|
Junior subordinated debentures |
|
4.23 |
|
|
4.17 |
|
|
4.29 |
|
|
4.39 |
|
|
4.46 |
|
Total interest-bearing liabilities |
|
0.70 |
% |
|
0.79 |
% |
|
0.98 |
% |
|
1.34 |
% |
|
1.45 |
% |
|
|
|
|
|
|
|
|
|
|
|
Interest rate spread (1)(2) |
|
2.32 |
% |
|
2.33 |
% |
|
2.46 |
% |
|
2.79 |
% |
|
2.80 |
% |
Less: Fully taxable-equivalent adjustment |
|
(0.01 |
) |
|
(0.01 |
) |
|
(0.01 |
) |
|
(0.02 |
) |
|
(0.02 |
) |
Net free funds/contribution (3) |
|
0.22 |
|
|
0.24 |
|
|
0.28 |
|
|
0.35 |
|
|
0.39 |
|
Net interest margin (GAAP) (2) |
|
2.53 |
% |
|
2.56 |
% |
|
2.73 |
% |
|
3.12 |
% |
|
3.17 |
% |
Fully taxable-equivalent adjustment |
|
0.01 |
|
|
0.01 |
|
|
0.01 |
|
|
0.02 |
|
|
0.02 |
|
Net interest margin, fully taxable-equivalent (non-GAAP)
(2) |
|
2.54 |
% |
|
2.57 |
% |
|
2.74 |
% |
|
3.14 |
% |
|
3.19 |
% |
(1) Interest rate spread is the
difference between the yield earned on earning assets and the rate
paid on interest-bearing liabilities.
(2) See "Supplemental Non-GAAP Financial
Measures/Ratios" at Table 18 for additional information on this
performance measure/ratio.
(3) 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.
TABLE 7: YEAR-TO-DATE AVERAGE BALANCES,
AND NET INTEREST INCOME AND MARGIN
|
Average Balance
for years ended, |
Interest
for years ended, |
Yield/Rate
for years ended, |
(Dollars in thousands) |
Dec 31, 2020 |
|
Dec 31,
2019 |
Dec 31, 2020 |
|
Dec 31, 2019 |
Dec 31, 2020 |
|
Dec 31, 2019 |
Interest-bearing deposits with banks and cash equivalents
(1) |
$ |
3,117,075 |
|
|
$ |
1,494,418 |
|
|
$ |
8,655 |
|
|
$ |
30,503 |
|
|
0.28 |
% |
|
2.04 |
% |
Investment securities (2) |
4,101,136 |
|
|
3,651,091 |
|
|
101,799 |
|
|
110,326 |
|
|
2.48 |
|
|
3.02 |
|
FHLB and FRB stock |
130,360 |
|
|
96,924 |
|
|
6,891 |
|
|
5,416 |
|
|
5.29 |
|
|
5.59 |
|
Liquidity management assets (3)(4) |
$ |
7,348,571 |
|
|
$ |
5,242,433 |
|
|
$ |
117,345 |
|
|
$ |
146,245 |
|
|
1.60 |
% |
|
2.79 |
% |
Other earning assets (3)(4)(5) |
17,863 |
|
|
16,385 |
|
|
523 |
|
|
714 |
|
|
2.94 |
|
|
4.36 |
|
Mortgage loans held-for-sale |
707,147 |
|
|
308,645 |
|
|
20,077 |
|
|
11,992 |
|
|
2.84 |
|
|
3.89 |
|
Loans, net of unearned income (3)(4)(6) |
30,181,204 |
|
|
24,986,736 |
|
|
1,159,490 |
|
|
1,232,415 |
|
|
3.84 |
|
|
4.93 |
|
Total earning assets (4) |
$ |
38,254,785 |
|
|
$ |
30,554,199 |
|
|
$ |
1,297,435 |
|
|
$ |
1,391,366 |
|
|
3.39 |
% |
|
4.55 |
% |
Allowance for loan and investment security losses
(7) |
(264,516 |
) |
|
(164,587 |
) |
|
|
|
|
|
|
|
Cash and due from banks |
341,116 |
|
|
292,807 |
|
|
|
|
|
|
|
|
Other assets |
3,039,954 |
|
|
2,549,664 |
|
|
|
|
|
|
|
|
Total assets |
$ |
41,371,339 |
|
|
$ |
33,232,083 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NOW and interest-bearing demand deposits |
$ |
3,298,554 |
|
|
$ |
2,903,441 |
|
|
$ |
7,642 |
|
|
$ |
20,079 |
|
|
0.23 |
% |
|
0.69 |
% |
Wealth management deposits |
3,882,975 |
|
|
2,761,936 |
|
|
29,277 |
|
|
31,121 |
|
|
0.75 |
|
|
1.13 |
|
Money market accounts |
8,874,488 |
|
|
6,659,376 |
|
|
46,488 |
|
|
91,940 |
|
|
0.52 |
|
|
1.38 |
|
Savings accounts |
3,354,662 |
|
|
2,834,381 |
|
|
12,507 |
|
|
20,975 |
|
|
0.37 |
|
|
0.74 |
|
Time deposits |
5,142,938 |
|
|
5,467,192 |
|
|
93,264 |
|
|
114,777 |
|
|
1.81 |
|
|
2.10 |
|
Interest-bearing deposits |
$ |
24,553,617 |
|
|
$ |
20,626,326 |
|
|
$ |
189,178 |
|
|
$ |
278,892 |
|
|
0.77 |
% |
|
1.35 |
% |
Federal Home Loan Bank advances |
1,156,106 |
|
|
658,669 |
|
|
18,193 |
|
|
9,878 |
|
|
1.57 |
|
|
1.50 |
|
Other borrowings |
496,693 |
|
|
428,834 |
|
|
12,773 |
|
|
13,897 |
|
|
2.57 |
|
|
3.24 |
|
Subordinated notes |
436,275 |
|
|
309,178 |
|
|
21,961 |
|
|
15,555 |
|
|
5.03 |
|
|
5.03 |
|
Junior subordinated debentures |
253,566 |
|
|
253,566 |
|
|
11,008 |
|
|
12,001 |
|
|
4.27 |
|
|
4.67 |
|
Total interest-bearing liabilities |
$ |
26,896,257 |
|
|
$ |
22,276,573 |
|
|
$ |
253,113 |
|
|
$ |
330,223 |
|
|
0.94 |
% |
|
1.48 |
% |
Non-interest-bearing deposits |
9,432,090 |
|
|
6,711,298 |
|
|
|
|
|
|
|
|
Other liabilities |
1,116,304 |
|
|
782,677 |
|
|
|
|
|
|
|
|
Equity |
3,926,688 |
|
|
3,461,535 |
|
|
|
|
|
|
|
|
Total liabilities and shareholders’ equity |
$ |
41,371,339 |
|
|
$ |
33,232,083 |
|
|
|
|
|
|
|
|
Interest rate spread (4)(8) |
|
|
|
|
|
|
2.45 |
% |
|
3.07 |
% |
Less: Fully taxable-equivalent adjustment |
|
|
|
(4,415 |
) |
|
(6,224 |
) |
|
(0.01 |
) |
|
(0.02 |
) |
Net free funds/contribution (9) |
$ |
11,358,528 |
|
|
$ |
8,277,626 |
|
|
|
|
|
0.28 |
|
|
0.40 |
|
Net interest income/ margin (GAAP) (4) |
|
|
|
$ |
1,039,907 |
|
|
1,054,919 |
|
|
2.72 |
% |
|
3.45 |
% |
Fully taxable-equivalent adjustment |
|
|
|
4,415 |
|
|
6,224 |
|
|
0.01 |
|
|
0.02 |
|
Net interest income/ margin, fully taxable-equivalent (non-GAAP)
(4) |
|
|
|
$ |
1,044,322 |
|
|
$ |
1,061,143 |
|
|
2.73 |
% |
|
3.47 |
% |
(1) Includes interest-bearing
deposits from banks, federal funds sold and securities purchased
under resale agreements.
(2) Investment securities includes investment
securities classified as available-for-sale and held-to-maturity,
and equity securities with readily determinable fair values. Equity
securities without readily determinable fair values are included
within other assets.
(3) Interest income on tax-advantaged loans, trading
securities and investment securities reflects a taxable-equivalent
adjustment based on a marginal federal corporate tax rate in effect
as of the applicable period.
(4) See “Supplemental Non-GAAP Financial
Measures/Ratios” at Table 18 for additional information on this
performance ratio.
(5) Other earning assets include brokerage customer
receivables and trading account securities.
(6) Loans, net of unearned income, include
non-accrual loans.
(7) Effective January 1, 2020 this includes the
allowance for investment security losses as a result of the
adoption of ASU 2016-13, Financial Instruments - Credit
Losses.
(8) Interest rate spread is the difference between
the yield earned on earning assets and the rate paid on
interest-bearing liabilities.
(9) 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.
TABLE 8: 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 |
Dec 31, 2020 |
|
25.0 |
% |
|
11.6 |
% |
|
(7.9 |
)% |
|
Sep 30, 2020 |
|
23.4 |
|
|
10.9 |
|
|
(8.1 |
) |
|
Jun 30, 2020 |
|
25.9 |
|
|
12.6 |
|
|
(8.3 |
) |
|
Mar 31, 2020 |
|
22.5 |
|
|
10.6 |
|
|
(9.4 |
) |
|
Dec 31, 2019 |
|
18.6 |
|
|
9.7 |
|
|
(10.9 |
) |
|
Ramp Scenario |
+200
Basis
Points |
|
+100
Basis
Points |
|
-100
Basis
Points |
Dec 31, 2020 |
11.4 |
% |
|
5.7 |
% |
|
(3.3 |
)% |
|
Sep 30, 2020 |
10.7 |
|
|
5.2 |
|
|
(3.5 |
) |
|
Jun 30, 2020 |
13.0 |
|
|
6.7 |
|
|
(3.2 |
) |
|
Mar 31, 2020 |
7.7 |
|
|
3.7 |
|
|
(3.8 |
) |
|
Dec 31, 2019 |
9.3 |
|
|
4.8 |
|
|
(5.0 |
) |
|
TABLE 9: MATURITIES AND SENSITIVITIES TO
CHANGES IN INTEREST RATES
|
Loans repricing or maturity period |
|
|
As of December 31, 2020 |
One year or less |
|
From one to five years |
|
Over five years |
|
|
(In
thousands) |
|
|
|
Total |
Commercial |
|
|
|
|
|
|
|
Fixed rate |
$ |
372,909 |
|
|
$ |
1,878,763 |
|
|
$ |
804,397 |
|
|
$ |
3,056,069 |
|
Fixed Rate - PPP |
— |
|
|
2,715,921 |
|
|
— |
|
|
2,715,921 |
|
Variable rate |
6,180,119 |
|
|
3,735 |
|
|
123 |
|
|
6,183,977 |
|
Total commercial |
$ |
6,553,028 |
|
|
$ |
4,598,419 |
|
|
$ |
804,520 |
|
|
$ |
11,955,967 |
|
Commercial real estate |
|
|
|
|
|
|
|
Fixed rate |
557,819 |
|
|
2,087,351 |
|
|
377,779 |
|
|
3,022,949 |
|
Variable rate |
5,435,402 |
|
|
35,781 |
|
|
— |
|
|
5,471,183 |
|
Total commercial real estate |
$ |
5,993,221 |
|
|
$ |
2,123,132 |
|
|
$ |
377,779 |
|
|
$ |
8,494,132 |
|
Home equity |
|
|
|
|
|
|
|
Fixed rate |
14,710 |
|
|
8,882 |
|
|
25 |
|
|
23,617 |
|
Variable rate |
401,646 |
|
|
— |
|
|
— |
|
|
401,646 |
|
Total home equity |
$ |
416,356 |
|
|
$ |
8,882 |
|
|
$ |
25 |
|
|
$ |
425,263 |
|
Residential real estate |
|
|
|
|
|
|
|
Fixed rate |
31,179 |
|
|
11,061 |
|
|
384,420 |
|
|
426,660 |
|
Variable rate |
60,121 |
|
|
319,347 |
|
|
453,470 |
|
|
832,938 |
|
Total residential real estate |
$ |
91,300 |
|
|
$ |
330,408 |
|
|
$ |
837,890 |
|
|
$ |
1,259,598 |
|
Premium finance receivables - commercial |
|
|
|
|
|
|
|
Fixed rate |
3,967,351 |
|
|
87,138 |
|
|
— |
|
|
4,054,489 |
|
Variable rate |
— |
|
|
— |
|
|
— |
|
|
— |
|
Total premium finance receivables - commercial |
$ |
3,967,351 |
|
|
$ |
87,138 |
|
|
$ |
— |
|
|
$ |
4,054,489 |
|
Premium finance receivables - life insurance |
|
|
|
|
|
|
|
Fixed rate |
12,424 |
|
|
299,640 |
|
|
18,931 |
|
|
330,995 |
|
Variable rate |
5,526,441 |
|
|
— |
|
|
— |
|
|
5,526,441 |
|
Total premium finance receivables - life insurance |
$ |
5,538,865 |
|
|
$ |
299,640 |
|
|
$ |
18,931 |
|
|
$ |
5,857,436 |
|
Consumer and other |
|
|
|
|
|
|
|
Fixed rate |
8,696 |
|
|
5,031 |
|
|
1,392 |
|
|
15,119 |
|
Variable rate |
17,069 |
|
|
— |
|
|
— |
|
|
17,069 |
|
Total consumer and other |
$ |
25,765 |
|
|
$ |
5,031 |
|
|
$ |
1,392 |
|
|
$ |
32,188 |
|
|
|
|
|
|
|
|
|
Total per category |
|
|
|
|
|
|
|
Fixed rate |
4,965,088 |
|
|
4,377,866 |
|
|
1,586,944 |
|
|
10,929,898 |
|
Fixed rate - PPP |
— |
|
|
2,715,921 |
|
|
— |
|
|
2,715,921 |
|
Variable rate |
17,620,798 |
|
|
358,863 |
|
|
453,593 |
|
|
18,433,254 |
|
Total loans, net of unearned income |
$ |
22,585,886 |
|
|
$ |
7,452,650 |
|
|
$ |
2,040,537 |
|
|
$ |
32,079,073 |
|
|
|
|
|
|
|
|
|
Variable Rate Loan Pricing by Index: |
|
|
|
|
|
|
|
Prime |
|
|
|
|
|
|
$ |
2,324,385 |
|
One- month LIBOR |
|
|
|
|
|
|
9,338,592 |
|
Three- month LIBOR |
|
|
|
|
|
|
394,592 |
|
Twelve- month LIBOR |
|
|
|
|
|
|
6,112,979 |
|
Other |
|
|
|
|
|
|
262,706 |
|
Total variable rate |
|
|
|
|
|
|
$ |
18,433,254 |
|
Graph available at the following link: http://ml.globenewswire.com/Resource/Download/f719da90-6a62-4f5d-a7fb-d34801cb841a
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 which has historically moved when the Federal Reserve
raises or lowers interest rates. Specifically, the Company
has $9.3 billion of variable rate loans tied to one-month LIBOR and
$6.1 billion of variable rate loans tied to twelve-month LIBOR. The
above chart shows:
|
|
Basis Point (bp) Change in |
|
|
Prime |
|
1-month
LIBOR |
|
12-month
LIBOR |
|
Fourth Quarter 2020 |
|
0 |
bp |
-1 |
bp |
-2 |
bps |
Third
Quarter 2020 |
|
0 |
|
-1 |
|
-19 |
|
Second
Quarter 2020 |
|
0 |
|
-83 |
|
-45 |
|
First
Quarter 2020 |
|
-150 |
|
-77 |
|
-100 |
|
Fourth Quarter 2019 |
|
-25 |
|
-26 |
|
-3 |
|
TABLE 10: ALLOWANCE FOR CREDIT LOSSES
|
|
Three Months Ended |
Years Ended |
|
|
Dec 31, |
|
Sep 30, |
|
Jun 30, |
|
Mar 31, |
|
Dec 31, |
Dec 31, |
|
Dec 31, |
(Dollars in thousands) |
|
2020 |
|
2020 |
|
2020 |
|
2020 |
|
2019 |
2020 |
|
2019 |
Allowance for credit losses at beginning of
period |
|
$ |
388,971 |
|
|
$ |
373,174 |
|
|
$ |
253,482 |
|
|
$ |
158,461 |
|
|
$ |
163,273 |
|
$ |
158,461 |
|
|
$ |
154,164 |
|
Cumulative effect adjustment from the adoption of ASU
2016-13 |
|
— |
|
|
— |
|
|
— |
|
|
47,418 |
|
|
— |
|
47,418 |
|
|
— |
|
Provision for credit losses |
|
1,180 |
|
|
25,026 |
|
|
135,053 |
|
|
52,961 |
|
|
7,826 |
|
214,220 |
|
|
53,864 |
|
Other adjustments |
|
155 |
|
|
55 |
|
|
42 |
|
|
(73 |
) |
|
30 |
|
179 |
|
|
(21 |
) |
Charge-offs: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial |
|
5,184 |
|
|
5,270 |
|
|
5,686 |
|
|
2,153 |
|
|
11,222 |
|
18,293 |
|
|
35,880 |
|
Commercial real estate |
|
6,637 |
|
|
1,529 |
|
|
7,224 |
|
|
570 |
|
|
533 |
|
15,960 |
|
|
5,402 |
|
Home equity |
|
683 |
|
|
138 |
|
|
239 |
|
|
1,001 |
|
|
1,330 |
|
2,061 |
|
|
3,702 |
|
Residential real estate |
|
114 |
|
|
83 |
|
|
293 |
|
|
401 |
|
|
483 |
|
891 |
|
|
798 |
|
Premium finance receivables |
|
4,214 |
|
|
4,640 |
|
|
3,434 |
|
|
3,184 |
|
|
3,817 |
|
15,472 |
|
|
12,902 |
|
Consumer and other |
|
198 |
|
|
103 |
|
|
99 |
|
|
128 |
|
|
167 |
|
528 |
|
|
522 |
|
Total charge-offs |
|
17,030 |
|
|
11,763 |
|
|
16,975 |
|
|
7,437 |
|
|
17,552 |
|
53,205 |
|
|
59,206 |
|
Recoveries: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial |
|
4,168 |
|
|
428 |
|
|
112 |
|
|
384 |
|
|
1,871 |
|
5,092 |
|
|
2,845 |
|
Commercial real estate |
|
904 |
|
|
175 |
|
|
493 |
|
|
263 |
|
|
1,404 |
|
1,835 |
|
|
2,516 |
|
Home equity |
|
77 |
|
|
111 |
|
|
46 |
|
|
294 |
|
|
166 |
|
528 |
|
|
479 |
|
Residential real estate |
|
69 |
|
|
25 |
|
|
30 |
|
|
60 |
|
|
50 |
|
184 |
|
|
422 |
|
Premium finance receivables |
|
1,445 |
|
|
1,720 |
|
|
833 |
|
|
1,110 |
|
|
1,350 |
|
5,108 |
|
|
3,203 |
|
Consumer and other |
|
30 |
|
|
20 |
|
|
58 |
|
|
41 |
|
|
43 |
|
149 |
|
|
195 |
|
Total recoveries |
|
6,693 |
|
|
2,479 |
|
|
1,572 |
|
|
2,152 |
|
|
4,884 |
|
12,896 |
|
|
9,660 |
|
Net charge-offs |
|
(10,337 |
) |
|
(9,284 |
) |
|
(15,403 |
) |
|
(5,285 |
) |
|
(12,668 |
) |
(40,309 |
) |
|
(49,546 |
) |
Allowance for credit losses at period end |
|
$ |
379,969 |
|
|
$ |
388,971 |
|
|
$ |
373,174 |
|
|
$ |
253,482 |
|
|
$ |
158,461 |
|
$ |
379,969 |
|
|
$ |
158,461 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Annualized net charge-offs by category as a percentage of
its own respective category’s average: |
|
|
|
Commercial |
|
0.03 |
% |
|
0.16 |
% |
|
0.20 |
% |
|
0.08 |
% |
|
0.46 |
% |
0.12 |
% |
|
0.41 |
% |
Commercial real estate |
|
0.27 |
|
|
0.06 |
|
|
0.33 |
|
|
0.02 |
|
|
(0.04 |
) |
0.17 |
|
|
0.04 |
|
Home equity |
|
0.55 |
|
|
0.02 |
|
|
0.16 |
|
|
0.57 |
|
|
0.89 |
|
0.33 |
|
|
0.61 |
|
Residential real estate |
|
0.02 |
|
|
0.02 |
|
|
0.09 |
|
|
0.11 |
|
|
0.14 |
|
0.06 |
|
|
0.04 |
|
Premium finance receivables |
|
0.11 |
|
|
0.12 |
|
|
0.12 |
|
|
0.10 |
|
|
0.12 |
|
0.11 |
|
|
0.12 |
|
Consumer and other |
|
0.78 |
|
|
0.49 |
|
|
0.25 |
|
|
0.56 |
|
|
0.41 |
|
0.52 |
|
|
0.29 |
|
Total loans, net of unearned income |
|
0.13 |
% |
|
0.12 |
% |
|
0.20 |
% |
|
0.08 |
% |
|
0.19 |
% |
0.13 |
% |
|
0.20 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net charge-offs as a percentage of the provision for
credit losses |
|
876.02 |
% |
|
37.10 |
% |
|
11.41 |
% |
|
9.98 |
% |
|
161.87 |
% |
18.82 |
% |
|
91.99 |
% |
Loans at period-end |
|
$ |
32,079,073 |
|
|
$ |
32,135,555 |
|
|
$ |
31,402,903 |
|
|
$ |
27,807,321 |
|
|
$ |
26,800,290 |
|
|
|
|
Allowance for loan losses as a percentage of loans at
period end |
|
1.00 |
% |
|
1.01 |
% |
|
1.00 |
% |
|
0.78 |
% |
|
0.59 |
% |
|
|
|
Allowance for loan and unfunded lending-related commitment
losses as a percentage of loans at period end |
|
1.18 |
|
|
1.21 |
|
|
1.19 |
|
|
0.91 |
|
|
0.59 |
|
|
|
|
Allowance for loan and unfunded lending-related commitment
losses as a percentage of loans at period end, excluding PPP
loans |
|
1.29 |
|
|
1.35 |
|
|
1.33 |
|
|
0.91 |
|
|
0.59 |
|
|
|
|
TABLE 11: ALLOWANCE AND PROVISION FOR CREDIT LOSSES BY
COMPONENT
|
|
Three Months Ended |
Years Ended |
|
|
Dec 31, |
|
Sep 30, |
|
Jun 30, |
|
Mar 31, |
|
Dec 31, |
Dec 31, |
|
Dec 31, |
(In
thousands) |
|
2020 |
|
2020 |
|
2020 |
|
2020 |
|
2019 |
2020 |
|
2019 |
Provision for loan losses |
|
$ |
3,597 |
|
|
$ |
21,678 |
|
|
$ |
112,822 |
|
|
$ |
50,396 |
|
|
$ |
7,704 |
|
$ |
188,493 |
|
|
$ |
53,626 |
|
Provision for unfunded lending-related commitments losses |
|
(2,413 |
) |
|
3,350 |
|
|
22,236 |
|
|
2,569 |
|
|
122 |
|
25,742 |
|
|
238 |
|
Provision for held-to-maturity securities losses |
|
(4 |
) |
|
(2 |
) |
|
(5 |
) |
|
(4 |
) |
|
— |
|
(15 |
) |
|
— |
|
Provision for credit losses |
|
$ |
1,180 |
|
|
$ |
25,026 |
|
|
$ |
135,053 |
|
|
$ |
52,961 |
|
|
$ |
7,826 |
|
$ |
214,220 |
|
|
$ |
53,864 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Allowance for loan losses |
|
$ |
319,374 |
|
|
$ |
325,959 |
|
|
$ |
313,510 |
|
|
$ |
216,050 |
|
|
$ |
156,828 |
|
|
|
|
Allowance for unfunded lending-related commitments losses |
|
60,536 |
|
|
62,949 |
|
|
59,599 |
|
|
37,362 |
|
|
1,633 |
|
|
|
|
Allowance for loan losses and unfunded lending-related commitments
losses |
|
379,910 |
|
|
388,908 |
|
|
373,109 |
|
|
253,412 |
|
|
158,461 |
|
|
|
|
Allowance for held-to-maturity securities losses |
|
59 |
|
|
63 |
|
|
65 |
|
|
70 |
|
|
— |
|
|
|
|
Allowance for credit losses |
|
$ |
379,969 |
|
|
$ |
388,971 |
|
|
$ |
373,174 |
|
|
$ |
253,482 |
|
|
$ |
158,461 |
|
|
|
|
TABLE 12: ALLOWANCE BY LOAN PORTFOLIO
The table below summarizes the calculation of
allowance for loan losses and allowance for unfunded
lending-related commitments losses for the Company’s core, niche
and consumer and purchased loan portfolios, as of December 31,
2020 and September 30, 2020.
|
As of Dec 31, 2020 |
As of Sep 30, 2020 |
(Dollars in thousands) |
Recorded
Investment |
|
Calculated
Allowance |
|
% of its
category’s balance |
Recorded
Investment |
|
Calculated
Allowance |
|
% of its
category’s balance |
Commercial: |
|
|
|
|
|
|
|
|
|
|
Commercial, industrial and other, excluding PPP loans |
$ |
9,162,327 |
|
|
$ |
92,777 |
|
|
1.01 |
% |
$ |
8,808,467 |
|
|
$ |
110,045 |
|
|
1.25 |
% |
Commercial real estate: |
|
|
|
|
|
|
|
|
|
|
Construction and development |
1,344,653 |
|
|
77,463 |
|
|
5.76 |
|
1,270,235 |
|
|
73,565 |
|
|
5.79 |
|
Non-construction |
6,775,195 |
|
|
150,637 |
|
|
2.22 |
|
6,708,538 |
|
|
141,249 |
|
|
2.11 |
|
Home
equity |
395,248 |
|
|
11,027 |
|
|
2.79 |
|
412,162 |
|
|
11,216 |
|
|
2.72 |
|
Residential real estate |
1,195,271 |
|
|
11,948 |
|
|
1.00 |
|
1,309,209 |
|
|
11,165 |
|
|
0.85 |
|
Total core loan portfolio |
$ |
18,872,694 |
|
|
$ |
343,852 |
|
|
1.82 |
% |
$ |
18,508,611 |
|
|
$ |
347,240 |
|
|
1.88 |
% |
Commercial PPP loans |
$ |
2,715,921 |
|
|
$ |
2 |
|
|
0.00 |
% |
$ |
3,379,013 |
|
|
$ |
3 |
|
|
0.00 |
% |
Premium finance receivables |
|
|
|
|
|
|
|
|
|
|
Commercial insurance loans |
4,054,489 |
|
|
17,267 |
|
|
0.43 |
|
4,060,144 |
|
|
17,378 |
|
|
0.43 |
|
Life insurance loans |
5,741,639 |
|
|
510 |
|
|
0.01 |
|
5,376,403 |
|
|
478 |
|
|
0.01 |
|
Consumer
and other |
30,133 |
|
|
290 |
|
|
0.96 |
|
53,191 |
|
|
555 |
|
|
1.04 |
|
Total niche and consumer loan portfolio |
$ |
12,542,182 |
|
|
$ |
18,069 |
|
|
0.14 |
% |
$ |
12,868,751 |
|
|
$ |
18,414 |
|
|
0.14 |
% |
Purchased
commercial |
$ |
77,719 |
|
|
$ |
1,433 |
|
|
1.84 |
% |
$ |
89,519 |
|
|
$ |
2,846 |
|
|
3.18 |
% |
Purchased
commercial real estate |
374,284 |
|
|
15,503 |
|
|
4.14 |
|
444,369 |
|
|
19,196 |
|
|
4.32 |
|
Purchased
home equity |
30,015 |
|
|
410 |
|
|
1.37 |
|
34,112 |
|
|
461 |
|
|
1.35 |
|
Purchased
residential real estate |
64,327 |
|
|
511 |
|
|
0.79 |
|
75,601 |
|
|
625 |
|
|
0.83 |
|
Purchased life insurance loans |
115,797 |
|
|
— |
|
|
— |
|
112,429 |
|
|
— |
|
|
— |
|
Purchased
consumer and other |
2,055 |
|
|
132 |
|
|
6.42 |
|
2,163 |
|
|
126 |
|
|
5.83 |
|
Total purchased loan portfolio |
$ |
664,197 |
|
|
$ |
17,989 |
|
|
2.71 |
% |
$ |
758,193 |
|
|
$ |
23,254 |
|
|
3.07 |
% |
Total loans, net of unearned income |
$ |
32,079,073 |
|
|
$ |
379,910 |
|
|
1.18 |
% |
$ |
32,135,555 |
|
|
$ |
388,908 |
|
|
1.21 |
% |
Total loans, net of unearned income, excluding PPP
loans |
$ |
29,363,152 |
|
|
$ |
379,908 |
|
|
1.29 |
% |
$ |
28,756,542 |
|
|
$ |
388,905 |
|
|
1.35 |
% |
TABLE 13: LOAN PORTFOLIO
AGING
(Dollars in thousands) |
|
Dec 31, 2020 |
|
Sep 30, 2020 |
|
Jun 30, 2020 |
|
Mar 31, 2020 |
|
Dec 31, 2019 |
Loan Balances: |
|
|
|
|
|
|
|
|
|
|
Commercial |
|
|
|
|
|
|
|
|
|
|
Nonaccrual |
|
$ |
21,743 |
|
|
$ |
42,036 |
|
|
$ |
42,882 |
|
|
$ |
49,916 |
|
|
$ |
37,224 |
|
90+ days and still accruing |
|
307 |
|
|
— |
|
|
1,374 |
|
|
1,241 |
|
|
1,855 |
|
60-89 days past due |
|
6,900 |
|
|
2,168 |
|
|
8,952 |
|
|
8,873 |
|
|
3,275 |
|
30-59 days past due |
|
44,381 |
|
|
48,271 |
|
|
23,720 |
|
|
86,129 |
|
|
77,324 |
|
Current |
|
11,882,636 |
|
|
12,184,524 |
|
|
11,782,304 |
|
|
8,879,727 |
|
|
8,166,242 |
|
Total commercial |
|
$ |
11,955,967 |
|
|
$ |
12,276,999 |
|
|
$ |
11,859,232 |
|
|
$ |
9,025,886 |
|
|
$ |
8,285,920 |
|
Commercial real estate |
|
|
|
|
|
|
|
|
|
|
Nonaccrual |
|
$ |
46,107 |
|
|
$ |
68,815 |
|
|
$ |
64,557 |
|
|
$ |
62,830 |
|
|
$ |
26,113 |
|
90+ days and still accruing |
|
— |
|
|
— |
|
|
— |
|
|
516 |
|
|
14,946 |
|
60-89 days past due |
|
5,178 |
|
|
8,299 |
|
|
26,480 |
|
|
10,212 |
|
|
31,546 |
|
30-59 days past due |
|
32,116 |
|
|
53,462 |
|
|
75,528 |
|
|
75,068 |
|
|
97,567 |
|
Current |
|
8,410,731 |
|
|
8,292,566 |
|
|
8,034,180 |
|
|
8,036,905 |
|
|
7,850,104 |
|
Total commercial real estate |
|
$ |
8,494,132 |
|
|
$ |
8,423,142 |
|
|
$ |
8,200,745 |
|
|
8,185,531 |
|
|
$ |
8,020,276 |
|
Home equity |
|
|
|
|
|
|
|
|
|
|
Nonaccrual |
|
$ |
6,529 |
|
|
$ |
6,329 |
|
|
$ |
7,261 |
|
|
$ |
7,243 |
|
|
$ |
7,363 |
|
90+ days and still accruing |
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
60-89 days past due |
|
47 |
|
|
70 |
|
|
— |
|
|
214 |
|
|
454 |
|
30-59 days past due |
|
637 |
|
|
1,148 |
|
|
1,296 |
|
|
2,096 |
|
|
3,533 |
|
Current |
|
418,050 |
|
|
438,727 |
|
|
458,039 |
|
|
485,102 |
|
|
501,716 |
|
Total home equity |
|
$ |
425,263 |
|
|
$ |
446,274 |
|
|
$ |
466,596 |
|
|
$ |
494,655 |
|
|
$ |
513,066 |
|
Residential real estate |
|
|
|
|
|
|
|
|
|
|
Nonaccrual |
|
$ |
26,071 |
|
|
$ |
22,069 |
|
|
$ |
19,529 |
|
|
$ |
18,965 |
|
|
$ |
13,797 |
|
90+ days and still accruing |
|
— |
|
|
— |
|
|
— |
|
|
605 |
|
|
5,771 |
|
60-89 days past due |
|
1,635 |
|
|
814 |
|
|
1,506 |
|
|
345 |
|
|
3,089 |
|
30-59 days past due |
|
12,584 |
|
|
2,443 |
|
|
4,400 |
|
|
28,983 |
|
|
18,041 |
|
Current |
|
1,219,308 |
|
|
1,359,484 |
|
|
1,401,994 |
|
|
1,328,491 |
|
|
1,313,523 |
|
Total residential real estate |
|
$ |
1,259,598 |
|
|
$ |
1,384,810 |
|
|
$ |
1,427,429 |
|
|
$ |
1,377,389 |
|
|
$ |
1,354,221 |
|
Premium finance receivables |
|
|
|
|
|
|
|
|
|
|
Nonaccrual |
|
$ |
13,264 |
|
|
$ |
21,080 |
|
|
$ |
16,460 |
|
|
$ |
21,058 |
|
|
$ |
21,180 |
|
90+ days and still accruing |
|
12,792 |
|
|
12,177 |
|
|
35,638 |
|
|
16,505 |
|
|
11,517 |
|
60-89 days past due |
|
27,801 |
|
|
38,286 |
|
|
42,353 |
|
|
12,730 |
|
|
12,119 |
|
30-59 days past due |
|
49,274 |
|
|
80,732 |
|
|
61,160 |
|
|
70,185 |
|
|
51,342 |
|
Current |
|
9,808,794 |
|
|
9,396,701 |
|
|
9,244,965 |
|
|
8,566,216 |
|
|
8,420,471 |
|
Total premium finance receivables |
|
$ |
9,911,925 |
|
|
$ |
9,548,976 |
|
|
$ |
9,400,576 |
|
|
$ |
8,686,694 |
|
|
$ |
8,516,629 |
|
Consumer and other |
|
|
|
|
|
|
|
|
|
|
Nonaccrual |
|
$ |
436 |
|
|
$ |
422 |
|
|
$ |
427 |
|
|
$ |
403 |
|
|
$ |
231 |
|
90+ days and still accruing |
|
264 |
|
|
175 |
|
|
156 |
|
|
78 |
|
|
287 |
|
60-89 days past due |
|
24 |
|
|
273 |
|
|
4 |
|
|
625 |
|
|
40 |
|
30-59 days past due |
|
136 |
|
|
493 |
|
|
281 |
|
|
207 |
|
|
344 |
|
Current |
|
31,328 |
|
|
53,991 |
|
|
47,457 |
|
|
35,853 |
|
|
109,276 |
|
Total consumer and other |
|
$ |
32,188 |
|
|
$ |
55,354 |
|
|
$ |
48,325 |
|
|
$ |
37,166 |
|
|
$ |
110,178 |
|
Total loans, net of unearned income |
|
|
|
|
|
|
|
|
|
|
Nonaccrual |
|
$ |
114,150 |
|
|
$ |
160,751 |
|
|
$ |
151,116 |
|
|
$ |
160,415 |
|
|
$ |
105,908 |
|
90+ days and still accruing |
|
13,363 |
|
|
12,352 |
|
|
37,168 |
|
|
18,945 |
|
|
34,376 |
|
60-89 days past due |
|
41,585 |
|
|
49,910 |
|
|
79,295 |
|
|
32,999 |
|
|
50,523 |
|
30-59 days past due |
|
139,128 |
|
|
186,549 |
|
|
166,385 |
|
|
262,668 |
|
|
248,151 |
|
Current |
|
31,770,847 |
|
|
31,725,993 |
|
|
30,968,939 |
|
|
27,332,294 |
|
|
26,361,332 |
|
Total loans, net of unearned income |
|
$ |
32,079,073 |
|
|
$ |
32,135,555 |
|
|
$ |
31,402,903 |
|
|
$ |
27,807,321 |
|
|
$ |
26,800,290 |
|
TABLE 14: NON-PERFORMING ASSETS AND TROUBLED DEBT
RESTRUCTURINGS ("TDRs")
|
Dec 31, |
|
Sep 30, |
|
Jun 30, |
|
Mar 31, |
|
Dec 31, |
(Dollars in thousands) |
2020 |
|
2020 |
|
2020 |
|
2020(1) |
|
2019 |
Loans past due greater than 90 days and still
accruing
(2): |
|
|
|
|
|
|
|
|
|
Commercial |
$ |
307 |
|
|
$ |
— |
|
|
$ |
1,374 |
|
|
$ |
1,241 |
|
|
$ |
— |
|
Commercial real estate |
— |
|
|
— |
|
|
— |
|
|
516 |
|
|
— |
|
Home
equity |
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
Residential real estate |
— |
|
|
— |
|
|
— |
|
|
605 |
|
|
— |
|
Premium
finance receivables |
12,792 |
|
|
12,177 |
|
|
35,638 |
|
|
16,505 |
|
|
11,517 |
|
Consumer
and other |
264 |
|
|
175 |
|
|
156 |
|
|
78 |
|
|
163 |
|
Total loans past due greater than 90 days and still accruing |
13,363 |
|
|
12,352 |
|
|
37,168 |
|
|
18,945 |
|
|
11,680 |
|
Non-accrual loans: |
|
|
|
|
|
|
|
|
|
Commercial |
21,743 |
|
|
42,036 |
|
|
42,882 |
|
|
49,916 |
|
|
37,224 |
|
Commercial real estate |
46,107 |
|
|
68,815 |
|
|
64,557 |
|
|
62,830 |
|
|
26,113 |
|
Home
equity |
6,529 |
|
|
6,329 |
|
|
7,261 |
|
|
7,243 |
|
|
7,363 |
|
Residential real estate |
26,071 |
|
|
22,069 |
|
|
19,529 |
|
|
18,965 |
|
|
13,797 |
|
Premium
finance receivables |
13,264 |
|
|
21,080 |
|
|
16,460 |
|
|
21,058 |
|
|
21,180 |
|
Consumer
and other |
436 |
|
|
422 |
|
|
427 |
|
|
403 |
|
|
231 |
|
Total non-accrual loans |
114,150 |
|
|
160,751 |
|
|
151,116 |
|
|
160,415 |
|
|
105,908 |
|
Total non-performing loans: |
|
|
|
|
|
|
|
|
|
Commercial |
22,050 |
|
|
42,036 |
|
|
44,256 |
|
|
51,157 |
|
|
37,224 |
|
Commercial real estate |
46,107 |
|
|
68,815 |
|
|
64,557 |
|
|
63,346 |
|
|
26,113 |
|
Home
equity |
6,529 |
|
|
6,329 |
|
|
7,261 |
|
|
7,243 |
|
|
7,363 |
|
Residential real estate |
26,071 |
|
|
22,069 |
|
|
19,529 |
|
|
19,570 |
|
|
13,797 |
|
Premium
finance receivables |
26,056 |
|
|
33,257 |
|
|
52,098 |
|
|
37,563 |
|
|
32,697 |
|
Consumer
and other |
700 |
|
|
597 |
|
|
583 |
|
|
481 |
|
|
394 |
|
Total non-performing loans |
$ |
127,513 |
|
|
$ |
173,103 |
|
|
$ |
188,284 |
|
|
$ |
179,360 |
|
|
$ |
117,588 |
|
Other
real estate owned |
9,711 |
|
|
2,891 |
|
|
2,409 |
|
|
2,701 |
|
|
5,208 |
|
Other
real estate owned - from acquisitions |
6,847 |
|
|
6,326 |
|
|
7,788 |
|
|
8,325 |
|
|
9,963 |
|
Other
repossessed assets |
— |
|
|
— |
|
|
— |
|
|
— |
|
|
4 |
|
Total non-performing assets |
$ |
144,071 |
|
|
$ |
182,320 |
|
|
$ |
198,481 |
|
|
$ |
190,386 |
|
|
$ |
132,763 |
|
Accruing
TDRs not included within non-performing assets |
$ |
47,023 |
|
|
$ |
46,410 |
|
|
$ |
48,609 |
|
|
$ |
47,049 |
|
|
$ |
36,725 |
|
Total non-performing loans by category as a percent of its
own respective category’s period-end balance: |
|
|
|
|
|
|
|
|
|
Commercial |
0.18 |
% |
|
0.34 |
% |
|
0.37 |
% |
|
0.57 |
% |
|
0.45 |
% |
Commercial real estate |
0.54 |
|
|
0.82 |
|
|
0.79 |
|
|
0.77 |
|
|
0.33 |
|
Home
equity |
1.54 |
|
|
1.42 |
|
|
1.56 |
|
|
1.46 |
|
|
1.44 |
|
Residential real estate |
2.07 |
|
|
1.59 |
|
|
1.37 |
|
|
1.42 |
|
|
1.02 |
|
Premium
finance receivables |
0.26 |
|
|
0.35 |
|
|
0.55 |
|
|
0.43 |
|
|
0.39 |
|
Consumer
and other |
2.17 |
|
|
1.08 |
|
|
1.21 |
|
|
1.29 |
|
|
0.36 |
|
Total loans, net of unearned income |
0.40 |
% |
|
0.54 |
% |
|
0.60 |
% |
|
0.65 |
% |
|
0.44 |
% |
Total non-performing assets as a percentage of total
assets |
0.32 |
% |
|
0.42 |
% |
|
0.46 |
% |
|
0.49 |
% |
|
0.36 |
% |
Allowance for credit losses as a percentage of non-accrual
loans |
332.82 |
% |
|
241.93 |
% |
|
246.90 |
% |
|
157.97 |
% |
|
149.62 |
% |
|
|
|
|
|
|
|
|
|
|
(1) Prior to the adoption of ASU
2016-13, acquired loans with evidence of credit quality
deterioration (purchased credit deteriorated loans, or "PCD loans")
were excluded from non-performing loans. PCD loans that meet the
definition of non-accrual or are greater than 90 days past-due and
still accruing interest are now included in non-performing loans
and resulted in a $37.3 million increase in non-accrual loans upon
adoption of ASU 2016-13 as of January 1, 2020.
(2) As of December 31, 2020, September 30,
2020, June 30, 2020, March 31, 2020, and
December 31, 2019, no TDRs were past due greater than 90 days
and still accruing interest.
Non-performing Loans Rollforward
|
Three Months Ended |
Years Ended |
|
Dec 31, |
|
Sep 30, |
|
Jun 30, |
|
Mar 31, |
|
Dec 31, |
Dec 31, |
|
Dec 31, |
(In
thousands) |
2020 |
|
2020 |
|
2020 |
|
2020 |
|
2019 |
2020 |
|
2019 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance at beginning of period |
$ |
173,103 |
|
|
$ |
188,284 |
|
|
$ |
179,360 |
|
|
$ |
117,588 |
|
|
$ |
114,284 |
|
$ |
117,588 |
|
|
$ |
113,234 |
|
Additions from becoming non-performing in the respective
period |
13,224 |
|
|
19,771 |
|
|
20,803 |
|
|
32,195 |
|
|
30,977 |
|
85,993 |
|
|
96,355 |
|
Additions from the adoption of ASU 2016-13 |
— |
|
|
— |
|
|
— |
|
|
37,285 |
|
|
— |
|
37,285 |
|
|
— |
|
Return to performing status |
(1,000 |
) |
|
(6,202 |
) |
|
(2,566 |
) |
|
(486 |
) |
|
(243 |
) |
(10,254 |
) |
|
(14,774 |
) |
Payments received |
(30,146 |
) |
|
(3,733 |
) |
|
(11,201 |
) |
|
(7,949 |
) |
|
(19,380 |
) |
(53,029 |
) |
|
(45,168 |
) |
Transfer to OREO and other repossessed assets |
(12,662 |
) |
|
(598 |
) |
|
— |
|
|
(1,297 |
) |
|
— |
|
(14,557 |
) |
|
(3,061 |
) |
Charge-offs |
(7,817 |
) |
|
(6,583 |
) |
|
(12,884 |
) |
|
(2,551 |
) |
|
(11,798 |
) |
(29,835 |
) |
|
(39,591 |
) |
Net change for niche loans (1) |
(7,189 |
) |
|
(17,836 |
) |
|
14,772 |
|
|
4,575 |
|
|
3,748 |
|
(5,678 |
) |
|
10,593 |
|
Balance at end of period |
$ |
127,513 |
|
|
$ |
173,103 |
|
|
$ |
188,284 |
|
|
$ |
179,360 |
|
|
$ |
117,588 |
|
$ |
127,513 |
|
|
$ |
117,588 |
|
(1) This includes activity for premium finance
receivables and indirect consumer loans.
TDRs
|
Dec 31, |
|
Sep 30, |
|
Jun 30, |
|
Mar 31, |
|
Dec 31, |
(In
thousands) |
2020 |
|
2020 |
|
2020 |
|
2020 |
|
2019 |
Accruing TDRs: |
|
|
|
|
|
|
|
|
|
Commercial |
$ |
7,699 |
|
|
$ |
7,863 |
|
|
$ |
5,338 |
|
|
$ |
6,500 |
|
|
$ |
4,905 |
|
Commercial real estate |
10,549 |
|
|
10,846 |
|
|
19,106 |
|
|
18,043 |
|
|
9,754 |
|
Residential real estate and other |
28,775 |
|
|
27,701 |
|
|
24,165 |
|
|
22,506 |
|
|
22,066 |
|
Total accrual |
$ |
47,023 |
|
|
$ |
46,410 |
|
|
$ |
48,609 |
|
|
$ |
47,049 |
|
|
$ |
36,725 |
|
Non-accrual TDRs:
(1) |
|
|
|
|
|
|
|
|
|
Commercial |
$ |
10,491 |
|
|
$ |
13,132 |
|
|
$ |
20,788 |
|
|
$ |
17,206 |
|
|
$ |
13,834 |
|
Commercial real estate |
6,177 |
|
|
13,601 |
|
|
8,545 |
|
|
14,420 |
|
|
7,119 |
|
Residential real estate and other |
4,501 |
|
|
5,392 |
|
|
5,606 |
|
|
4,962 |
|
|
6,158 |
|
Total non-accrual |
$ |
21,169 |
|
|
$ |
32,125 |
|
|
$ |
34,939 |
|
|
$ |
36,588 |
|
|
$ |
27,111 |
|
Total TDRs: |
|
|
|
|
|
|
|
|
|
Commercial |
$ |
18,190 |
|
|
$ |
20,995 |
|
|
$ |
26,126 |
|
|
$ |
23,706 |
|
|
$ |
18,739 |
|
Commercial real estate |
16,726 |
|
|
24,447 |
|
|
27,651 |
|
|
32,463 |
|
|
16,873 |
|
Residential real estate and other |
33,276 |
|
|
33,093 |
|
|
29,771 |
|
|
27,468 |
|
|
28,224 |
|
Total TDRs |
$ |
68,192 |
|
|
$ |
78,535 |
|
|
$ |
83,548 |
|
|
$ |
83,637 |
|
|
$ |
63,836 |
|
(1) Included in total non-performing
loans.
Other Real Estate Owned
|
Three Months Ended |
|
Dec 31, |
|
Sep 30, |
|
Jun 30, |
|
Mar 31, |
|
Dec 31, |
(In
thousands) |
2020 |
|
2020 |
|
2020 |
|
2020 |
|
2019 |
Balance at beginning of period |
$ |
9,217 |
|
|
$ |
10,197 |
|
|
$ |
11,026 |
|
|
$ |
15,171 |
|
|
$ |
17,482 |
|
Disposals/resolved |
(3,839 |
) |
|
(1,532 |
) |
|
(612 |
) |
|
(4,793 |
) |
|
(4,860 |
) |
Transfers in at fair value, less costs to sell |
11,508 |
|
|
777 |
|
|
— |
|
|
954 |
|
|
936 |
|
Additions from acquisition |
— |
|
|
— |
|
|
— |
|
|
— |
|
|
2,179 |
|
Fair value adjustments |
(328 |
) |
|
(225 |
) |
|
(217 |
) |
|
(306 |
) |
|
(566 |
) |
Balance at end of period |
$ |
16,558 |
|
|
$ |
9,217 |
|
|
$ |
10,197 |
|
|
$ |
11,026 |
|
|
$ |
15,171 |
|
|
|
|
|
|
|
|
|
|
|
|
Period End |
|
Dec 31, |
|
Sep 30, |
|
Jun 30, |
|
Mar 31, |
|
Dec 31, |
Balance by Property Type: |
2020 |
|
2020 |
|
2020 |
|
2020 |
|
2019 |
Residential real estate |
$ |
2,324 |
|
|
$ |
1,839 |
|
|
$ |
1,382 |
|
|
$ |
1,684 |
|
|
$ |
1,016 |
|
Residential real estate development |
1,691 |
|
|
— |
|
|
— |
|
|
— |
|
|
810 |
|
Commercial real estate |
12,543 |
|
|
7,378 |
|
|
8,815 |
|
|
9,342 |
|
|
13,345 |
|
Total |
$ |
16,558 |
|
|
$ |
9,217 |
|
|
$ |
10,197 |
|
|
$ |
11,026 |
|
|
$ |
15,171 |
|
TABLE 15: NON-INTEREST INCOME
|
Three Months Ended |
|
Q4 2020 compared to
Q3 2020 |
|
Q4 2020 compared to
Q4 2019 |
|
Dec
31, |
|
Sep 30, |
|
Jun 30, |
|
Mar 31, |
|
Dec 31, |
|
|
(Dollars in thousands) |
2020 |
|
2020 |
|
2020 |
|
2020 |
|
2019 |
|
$ Change |
|
% Change |
|
$ Change |
|
% Change |
Brokerage |
$ |
4,740 |
|
|
$ |
4,563 |
|
|
$ |
4,147 |
|
|
$ |
5,281 |
|
|
$ |
4,859 |
|
|
$ |
177 |
|
|
4 |
% |
|
$ |
(119 |
) |
|
(2 |
)% |
|
Trust and asset management |
22,062 |
|
|
20,394 |
|
|
18,489 |
|
|
20,660 |
|
|
20,140 |
|
|
1,668 |
|
|
8 |
|
|
1,922 |
|
|
10 |
|
|
Total wealth management |
26,802 |
|
|
24,957 |
|
|
22,636 |
|
|
25,941 |
|
|
24,999 |
|
|
1,845 |
|
|
7 |
|
|
1,803 |
|
|
7 |
|
|
Mortgage banking |
86,819 |
|
|
108,544 |
|
|
102,324 |
|
|
48,326 |
|
|
47,860 |
|
|
(21,725 |
) |
|
(20 |
) |
|
38,959 |
|
|
81 |
|
|
Service charges on deposit accounts |
11,841 |
|
|
11,497 |
|
|
10,420 |
|
|
11,265 |
|
|
10,973 |
|
|
344 |
|
|
3 |
|
|
868 |
|
|
8 |
|
|
Gains (losses) on investment securities, net |
1,214 |
|
|
411 |
|
|
808 |
|
|
(4,359 |
) |
|
587 |
|
|
803 |
|
|
NM |
|
627 |
|
|
NM |
|
Fees from covered call options |
— |
|
|
— |
|
|
— |
|
|
2,292 |
|
|
1,243 |
|
|
— |
|
|
NM |
|
(1,243 |
) |
|
(100 |
) |
|
Trading (losses) gains, net |
(102 |
) |
|
183 |
|
|
(634 |
) |
|
(451 |
) |
|
46 |
|
|
(285 |
) |
|
NM |
|
(148 |
) |
|
NM |
|
Operating lease income, net |
12,118 |
|
|
11,717 |
|
|
11,785 |
|
|
11,984 |
|
|
12,487 |
|
|
401 |
|
|
3 |
|
|
(369 |
) |
|
(3 |
) |
|
Other: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest rate swap fees |
4,930 |
|
|
4,029 |
|
|
5,693 |
|
|
6,066 |
|
|
2,206 |
|
|
901 |
|
|
22 |
|
|
2,724 |
|
|
NM |
|
BOLI |
2,846 |
|
|
1,218 |
|
|
1,950 |
|
|
(1,284 |
) |
|
1,377 |
|
|
1,628 |
|
|
134 |
|
|
1,469 |
|
|
NM |
|
Administrative services |
1,263 |
|
|
1,077 |
|
|
933 |
|
|
1,112 |
|
|
1,072 |
|
|
186 |
|
|
17 |
|
|
191 |
|
|
18 |
|
|
Foreign currency remeasurement (losses) gains |
(208 |
) |
|
(54 |
) |
|
(208 |
) |
|
(151 |
) |
|
261 |
|
|
(154 |
) |
|
NM |
|
(469 |
) |
|
NM |
|
Early pay-offs of capital leases |
118 |
|
|
165 |
|
|
275 |
|
|
74 |
|
|
24 |
|
|
(47 |
) |
|
(28 |
) |
|
94 |
|
|
NM |
|
Miscellaneous |
10,720 |
|
|
6,849 |
|
|
6,011 |
|
|
12,427 |
|
|
9,085 |
|
|
3,871 |
|
|
57 |
|
|
1,635 |
|
|
18 |
|
|
Total Other |
19,669 |
|
|
13,284 |
|
|
14,654 |
|
|
18,244 |
|
|
14,025 |
|
|
6,385 |
|
|
48 |
|
|
5,644 |
|
|
40 |
|
|
Total Non-Interest Income |
$ |
158,361 |
|
|
$ |
170,593 |
|
|
$ |
161,993 |
|
|
$ |
113,242 |
|
|
$ |
112,220 |
|
|
$ |
(12,232 |
) |
|
(7 |
)% |
|
$ |
46,141 |
|
|
41 |
% |
|
NM - Not meaningful.
|
Years Ended |
|
|
|
|
|
Dec 31, |
|
Dec 31, |
|
$ |
|
% |
(Dollars in thousands) |
2020 |
|
2019 |
|
Change |
|
Change |
Brokerage |
$ |
18,731 |
|
|
$ |
18,825 |
|
|
$ |
(94 |
) |
|
0 |
% |
Trust and asset management |
81,605 |
|
|
78,289 |
|
|
3,316 |
|
|
4 |
|
Total wealth management |
100,336 |
|
|
97,114 |
|
|
3,222 |
|
|
3 |
|
Mortgage banking |
346,013 |
|
|
154,293 |
|
|
191,720 |
|
|
124 |
|
Service charges on deposit accounts |
45,023 |
|
|
39,070 |
|
|
5,953 |
|
|
15 |
|
(Losses) gains on investment securities, net |
(1,926 |
) |
|
3,525 |
|
|
(5,451 |
) |
|
NM |
Fees from covered call options |
2,292 |
|
|
3,670 |
|
|
(1,378 |
) |
|
(38 |
) |
Trading losses, net |
(1,004 |
) |
|
(158 |
) |
|
(846 |
) |
|
NM |
Operating lease income, net |
47,604 |
|
|
47,041 |
|
|
563 |
|
|
1 |
|
Other: |
|
|
|
|
|
|
|
Interest rate swap fees |
20,718 |
|
|
13,072 |
|
|
7,646 |
|
|
58 |
|
BOLI |
4,730 |
|
|
4,947 |
|
|
(217 |
) |
|
(4 |
) |
Administrative services |
4,385 |
|
|
4,197 |
|
|
188 |
|
|
4 |
|
Foreign currency remeasurement (loss) gain |
(621 |
) |
|
783 |
|
|
(1,404 |
) |
|
NM |
Early pay-offs of leases |
632 |
|
|
35 |
|
|
597 |
|
|
NM |
Miscellaneous |
36,007 |
|
|
39,583 |
|
|
(3,576 |
) |
|
(9 |
) |
Total Other |
65,851 |
|
|
62,617 |
|
|
3,234 |
|
|
5 |
|
Total Non-Interest Income |
$ |
604,189 |
|
|
$ |
407,172 |
|
|
$ |
197,017 |
|
|
48 |
% |
NM - Not meaningful.
TABLE 16: MORTGAGE BANKING
|
Three Months Ended |
Years Ended |
(Dollars in thousands) |
Dec 31,
2020 |
|
Sep 30,
2020 |
|
Jun 30,
2020 |
|
Mar 31,
2020 |
|
Dec 31,
2019 |
Dec 31,
2020 |
|
Dec 31,
2019 |
Originations: |
|
|
|
|
|
|
|
|
|
|
|
|
Retail originations |
$ |
1,757,093 |
|
|
$ |
1,590,699 |
|
|
$ |
1,588,932 |
|
|
$ |
773,144 |
|
|
$ |
782,122 |
|
$ |
5,709,868 |
|
|
$ |
2,730,865 |
|
Correspondent originations |
— |
|
|
— |
|
|
— |
|
|
— |
|
|
4,024 |
|
— |
|
|
385,729 |
|
Veterans
First originations |
594,151 |
|
|
635,876 |
|
|
621,878 |
|
|
442,957 |
|
|
459,236 |
|
2,294,862 |
|
|
1,381,327 |
|
Total originations for sale (A) |
$ |
2,351,244 |
|
|
$ |
2,226,575 |
|
|
$ |
2,210,810 |
|
|
$ |
1,216,101 |
|
|
$ |
1,245,382 |
|
$ |
8,004,730 |
|
|
$ |
4,497,921 |
|
Originations for investment |
192,107 |
|
|
73,711 |
|
|
56,954 |
|
|
73,727 |
|
|
105,911 |
|
396,499 |
|
|
460,734 |
|
Total originations |
$ |
2,543,351 |
|
|
$ |
2,300,286 |
|
|
$ |
2,267,764 |
|
|
$ |
1,289,828 |
|
|
$ |
1,351,293 |
|
$ |
8,401,229 |
|
|
$ |
4,958,655 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Purchases
as a percentage of originations for sale |
35 |
% |
|
41 |
% |
|
30 |
% |
|
37 |
% |
|
40 |
% |
35 |
% |
|
52 |
% |
Refinances as a percentage of originations for sale |
65 |
|
|
59 |
|
|
70 |
|
|
63 |
|
|
60 |
|
65 |
|
|
48 |
|
Total |
100 |
% |
|
100 |
% |
|
100 |
% |
|
100 |
% |
|
100 |
% |
100 |
% |
|
100 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
Production Margin: |
|
|
|
|
|
|
|
|
|
|
|
|
Production revenue (B) (1) |
$ |
70,886 |
|
|
$ |
94,148 |
|
|
$ |
93,433 |
|
|
$ |
49,327 |
|
|
$ |
34,622 |
|
$ |
307,794 |
|
|
$ |
122,047 |
|
Production margin (B / A) |
3.01 |
% |
|
4.23 |
% |
|
4.23 |
% |
|
4.06 |
% |
|
2.78 |
% |
3.85 |
% |
|
2.71 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
Mortgage Servicing: |
|
|
|
|
|
|
|
|
|
|
|
|
Loans
serviced for others (C) |
$ |
10,833,135 |
|
|
$ |
10,139,878 |
|
|
$ |
9,188,285 |
|
|
$ |
8,314,634 |
|
|
$ |
8,243,251 |
|
|
|
|
MSRs, at
fair value (D) |
92,081 |
|
|
86,907 |
|
|
77,203 |
|
|
73,504 |
|
|
85,638 |
|
|
|
|
Percentage of MSRs to loans serviced for others (D / C) |
0.85 |
% |
|
0.86 |
% |
|
0.84 |
% |
|
0.88 |
% |
|
1.04 |
% |
|
|
|
Servicing
income |
$ |
9,829 |
|
|
$ |
8,118 |
|
|
$ |
6,908 |
|
|
$ |
7,031 |
|
|
$ |
6,247 |
|
$ |
31,886 |
|
|
$ |
23,156 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Components of MSR: |
|
|
|
|
|
|
|
|
|
|
|
|
MSR -
current period capitalization |
$ |
20,343 |
|
|
$ |
20,936 |
|
|
$ |
20,351 |
|
|
$ |
9,447 |
|
|
$ |
14,532 |
|
$ |
71,077 |
|
|
$ |
44,943 |
|
MSR -
collection of expected cash flows - paydowns |
(688 |
) |
|
(590 |
) |
|
(419 |
) |
|
(547 |
) |
|
(483 |
) |
(2,244 |
) |
|
(1,901 |
) |
MSR -
collection of expected cash flows - payoffs |
(8,335 |
) |
|
(7,272 |
) |
|
(8,252 |
) |
|
(6,476 |
) |
|
(6,325 |
) |
(30,335 |
) |
|
(18,217 |
) |
Valuation: |
|
|
|
|
|
|
|
|
|
|
|
|
MSR - changes in fair value model assumptions |
(5,223 |
) |
|
(3,002 |
) |
|
(7,982 |
) |
|
(14,557 |
) |
|
2,329 |
|
(30,764 |
) |
|
(14,778 |
) |
Gain (loss) on derivative contract held as an economic hedge,
net |
— |
|
|
— |
|
|
589 |
|
|
4,160 |
|
|
(483 |
) |
4,749 |
|
|
519 |
|
MSR valuation adjustment, net of gain/(loss) on derivative contract
held as an economic hedge |
$ |
(5,223 |
) |
|
$ |
(3,002 |
) |
|
$ |
(7,393 |
) |
|
$ |
(10,397 |
) |
|
$ |
1,846 |
|
$ |
(26,015 |
) |
|
$ |
(14,259 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Summary of Mortgage Banking Revenue: |
|
|
|
|
|
|
|
|
|
|
|
|
Production revenue (1) |
$ |
70,886 |
|
|
$ |
94,148 |
|
|
$ |
93,433 |
|
|
$ |
49,327 |
|
|
$ |
34,622 |
|
$ |
307,794 |
|
|
$ |
122,047 |
|
Servicing
income |
9,829 |
|
|
8,118 |
|
|
6,908 |
|
|
7,031 |
|
|
6,247 |
|
31,886 |
|
|
23,156 |
|
MSR
activity |
6,097 |
|
|
10,072 |
|
|
4,287 |
|
|
(7,973 |
) |
|
9,570 |
|
12,483 |
|
|
10,566 |
|
Other |
7 |
|
|
(3,794 |
) |
|
(2,304 |
) |
|
(59 |
) |
|
(2,579 |
) |
(6,150 |
) |
|
(1,476 |
) |
Total mortgage banking revenue |
$ |
86,819 |
|
|
$ |
108,544 |
|
|
$ |
102,324 |
|
|
$ |
48,326 |
|
|
$ |
47,860 |
|
$ |
346,013 |
|
|
$ |
154,293 |
|
(1) Production revenue represents
revenue earned from the origination and subsequent sale of
mortgages, including gains on loans sold and fees from
originations, changes in derivative activity, processing and other
related activities, and excludes servicing fees, changes in the
fair value of servicing rights and changes to the mortgage recourse
obligation and other non-production revenue.
TABLE 17: NON-INTEREST EXPENSE
|
Three Months Ended |
|
Q4 2020 compared to
Q3 2020 |
|
Q4 2020 compared to
Q4 2019 |
|
|
Dec 31, |
|
|
|
Sep 30, |
|
|
|
Jun 30, |
|
|
|
Mar 31, |
|
|
|
Dec 31, |
|
|
|
(Dollars in thousands) |
|
2020 |
|
|
|
2020 |
|
|
|
2020 |
|
|
|
2020 |
|
|
|
2019 |
|
|
|
$ Change |
|
|
% Change |
|
|
|
$ Change |
|
|
% Change |
|
Salaries
and employee benefits: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Salaries |
$ |
93,535 |
|
|
$ |
89,849 |
|
|
$ |
87,105 |
|
|
$ |
81,286 |
|
|
$ |
82,888 |
|
|
$ |
3,686 |
|
|
4 |
% |
|
$ |
10,647 |
|
|
13 |
% |
Commissions and incentive compensation |
52,383 |
|
|
48,475 |
|
|
46,151 |
|
|
31,575 |
|
|
40,226 |
|
|
3,908 |
|
|
8 |
|
|
12,157 |
|
|
30 |
|
Benefits |
25,198 |
|
|
25,718 |
|
|
20,900 |
|
|
23,901 |
|
|
22,827 |
|
|
(520 |
) |
|
(2 |
) |
|
2,371 |
|
|
10 |
|
Total salaries and employee benefits |
171,116 |
|
|
164,042 |
|
|
154,156 |
|
|
136,762 |
|
|
145,941 |
|
|
7,074 |
|
|
4 |
|
|
25,175 |
|
|
17 |
|
Equipment |
20,565 |
|
|
17,251 |
|
|
15,846 |
|
|
14,834 |
|
|
14,485 |
|
|
3,314 |
|
|
19 |
|
|
6,080 |
|
|
42 |
|
Operating
lease equipment depreciation |
9,938 |
|
|
9,425 |
|
|
9,292 |
|
|
9,260 |
|
|
9,766 |
|
|
513 |
|
|
5 |
|
|
172 |
|
|
2 |
|
Occupancy, net |
19,687 |
|
|
15,830 |
|
|
16,893 |
|
|
17,547 |
|
|
17,132 |
|
|
3,857 |
|
|
24 |
|
|
2,555 |
|
|
15 |
|
Data
processing |
5,728 |
|
|
5,689 |
|
|
10,406 |
|
|
8,373 |
|
|
7,569 |
|
|
39 |
|
|
1 |
|
|
(1,841 |
) |
|
(24 |
) |
Advertising and marketing |
9,850 |
|
|
7,880 |
|
|
7,704 |
|
|
10,862 |
|
|
12,517 |
|
|
1,970 |
|
|
25 |
|
|
(2,667 |
) |
|
(21 |
) |
Professional fees |
6,530 |
|
|
6,488 |
|
|
7,687 |
|
|
6,721 |
|
|
7,650 |
|
|
42 |
|
|
1 |
|
|
(1,120 |
) |
|
(15 |
) |
Amortization of other intangible assets |
2,634 |
|
|
2,701 |
|
|
2,820 |
|
|
2,863 |
|
|
3,017 |
|
|
(67 |
) |
|
(2 |
) |
|
(383 |
) |
|
(13 |
) |
FDIC
insurance |
7,016 |
|
|
6,772 |
|
|
7,081 |
|
|
4,135 |
|
|
1,348 |
|
|
244 |
|
|
4 |
|
|
5,668 |
|
|
NM |
OREO
expense, net |
(114 |
) |
|
(168 |
) |
|
237 |
|
|
(876 |
) |
|
536 |
|
|
54 |
|
|
(32 |
) |
|
(650 |
) |
|
NM |
Other: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commissions - 3rd party brokers |
764 |
|
|
778 |
|
|
707 |
|
|
865 |
|
|
717 |
|
|
(14 |
) |
|
(2 |
) |
|
47 |
|
|
7 |
|
Postage |
1,849 |
|
|
1,529 |
|
|
1,591 |
|
|
1,949 |
|
|
2,220 |
|
|
320 |
|
|
21 |
|
|
(371 |
) |
|
(17 |
) |
Miscellaneous |
26,304 |
|
|
26,002 |
|
|
24,948 |
|
|
21,346 |
|
|
26,693 |
|
|
302 |
|
|
1 |
|
|
(389 |
) |
|
(1 |
) |
Total other |
28,917 |
|
|
28,309 |
|
|
27,246 |
|
|
24,160 |
|
|
29,630 |
|
|
608 |
|
|
2 |
|
|
(713 |
) |
|
(2 |
) |
Total Non-Interest Expense |
$ |
281,867 |
|
|
$ |
264,219 |
|
|
$ |
259,368 |
|
|
$ |
234,641 |
|
|
$ |
249,591 |
|
|
$ |
17,648 |
|
|
7 |
% |
|
$ |
32,276 |
|
|
13 |
% |
NM - Not meaningful.
|
|
Years Ended |
|
|
|
|
|
Dec 31, |
|
Dec 31, |
$ |
|
% |
(Dollars in thousands) |
|
2020 |
|
2019 |
Change |
|
Change |
Salaries and employee benefits: |
|
|
|
|
|
|
|
Salaries |
|
$ |
351,775 |
|
|
$ |
310,352 |
|
$ |
41,423 |
|
|
13 |
% |
Commissions and incentive compensation |
|
178,584 |
|
|
148,600 |
|
29,984 |
|
|
20 |
|
Benefits |
|
95,717 |
|
|
87,468 |
|
8,249 |
|
|
9 |
|
Total salaries and employee benefits |
|
626,076 |
|
|
546,420 |
|
79,656 |
|
|
15 |
|
Equipment |
|
68,496 |
|
|
52,328 |
|
16,168 |
|
|
31 |
|
Operating lease equipment depreciation |
|
37,915 |
|
|
35,760 |
|
2,155 |
|
|
6 |
|
Occupancy, net |
|
69,957 |
|
|
64,289 |
|
5,668 |
|
|
9 |
|
Data processing |
|
30,196 |
|
|
27,820 |
|
2,376 |
|
|
9 |
|
Advertising and marketing |
|
36,296 |
|
|
48,595 |
|
(12,299 |
) |
|
(25 |
) |
Professional fees |
|
27,426 |
|
|
27,471 |
|
(45 |
) |
|
0 |
|
Amortization of other intangible assets |
|
11,018 |
|
|
11,844 |
|
(826 |
) |
|
(7 |
) |
FDIC insurance |
|
25,004 |
|
|
9,199 |
|
15,805 |
|
|
NM |
OREO expense, net |
|
(921 |
) |
|
3,628 |
|
(4,549 |
) |
|
NM |
Other: |
|
|
|
|
|
|
|
Commissions - 3rd party brokers |
|
3,114 |
|
|
2,918 |
|
196 |
|
|
7 |
|
Postage |
|
6,918 |
|
|
9,597 |
|
(2,679 |
) |
|
(28 |
) |
Miscellaneous |
|
98,600 |
|
|
88,257 |
|
10,343 |
|
|
12 |
|
Total other |
|
108,632 |
|
|
100,772 |
|
7,860 |
|
|
8 |
|
Total Non-Interest Expense |
|
$ |
1,040,095 |
|
|
$ |
928,126 |
|
$ |
111,969 |
|
|
12 |
% |
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, return
on average tangible common equity and pre-tax income, excluding
provision for credit losses. 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. Management
considers pre-tax income, excluding provision for credit losses, as
a useful measurement of the Company's core net income.
|
Three Months Ended |
Years Ended |
|
Dec 31, |
|
Sep 30, |
|
Jun 30, |
|
Mar 31, |
|
Dec 31, |
Dec 31, |
|
Dec 31, |
(Dollars and shares in thousands) |
2020 |
|
2020 |
|
2020 |
|
2020 |
|
2019 |
2020 |
|
2019 |
Reconciliation of Non-GAAP Net Interest Margin and
Efficiency Ratio: |
|
|
|
(A) Interest Income (GAAP) |
$ |
307,981 |
|
|
$ |
311,156 |
|
|
$ |
329,816 |
|
|
$ |
344,067 |
|
|
$ |
349,731 |
|
$ |
1,293,020 |
|
|
$ |
1,385,142 |
|
Taxable-equivalent adjustment: |
|
|
|
|
|
|
|
|
|
|
|
|
- Loans |
324 |
|
|
481 |
|
|
576 |
|
|
860 |
|
|
892 |
|
2,241 |
|
|
3,935 |
|
- Liquidity Management Assets |
530 |
|
|
546 |
|
|
538 |
|
|
551 |
|
|
573 |
|
2,165 |
|
|
2,280 |
|
- Other Earning Assets |
3 |
|
|
1 |
|
|
3 |
|
|
2 |
|
|
1 |
|
9 |
|
|
9 |
|
(B) Interest Income (non-GAAP) |
$ |
308,838 |
|
|
$ |
312,184 |
|
|
$ |
330,933 |
|
|
$ |
345,480 |
|
|
$ |
351,197 |
|
$ |
1,297,435 |
|
|
$ |
1,391,366 |
|
(C) Interest Expense (GAAP) |
$ |
48,584 |
|
|
$ |
55,220 |
|
|
$ |
66,685 |
|
|
$ |
82,624 |
|
|
$ |
87,852 |
|
$ |
253,113 |
|
|
$ |
330,223 |
|
(D) Net Interest Income (GAAP) (A minus C) |
$ |
259,397 |
|
|
$ |
255,936 |
|
|
$ |
263,131 |
|
|
$ |
261,443 |
|
|
$ |
261,879 |
|
$ |
1,039,907 |
|
|
$ |
1,054,919 |
|
(E) Net Interest Income (non-GAAP) (B minus
C) |
$ |
260,254 |
|
|
$ |
256,964 |
|
|
$ |
264,248 |
|
|
$ |
262,856 |
|
|
$ |
263,345 |
|
$ |
1,044,322 |
|
|
$ |
1,061,143 |
|
Net interest margin (GAAP) |
2.53 |
% |
|
2.56 |
% |
|
2.73 |
% |
|
3.12 |
% |
|
3.17 |
% |
2.72 |
% |
|
3.45 |
% |
Net interest margin, fully taxable-equivalent
(non-GAAP) |
2.54 |
% |
|
2.57 |
% |
|
2.74 |
% |
|
3.14 |
% |
|
3.19 |
% |
2.73 |
% |
|
3.47 |
% |
(F) Non-interest income |
$ |
158,361 |
|
|
$ |
170,593 |
|
|
$ |
161,993 |
|
|
$ |
113,242 |
|
|
$ |
112,220 |
|
$ |
604,189 |
|
|
$ |
407,172 |
|
(G) Gains (losses) on investment securities, net |
1,214 |
|
|
411 |
|
|
808 |
|
|
(4,359 |
) |
|
587 |
|
(1,926 |
) |
|
3,525 |
|
(H) Non-interest expense |
281,867 |
|
|
264,219 |
|
|
259,368 |
|
|
234,641 |
|
|
249,591 |
|
1,040,095 |
|
|
928,126 |
|
Efficiency ratio (H/(D+F-G)) |
67.67 |
% |
|
62.01 |
% |
|
61.13 |
% |
|
61.90 |
% |
|
66.82 |
% |
63.19 |
% |
|
63.63 |
% |
Efficiency ratio (non-GAAP) (H/(E+F-G)) |
67.53 |
% |
|
61.86 |
% |
|
60.97 |
% |
|
61.67 |
% |
|
66.56 |
% |
63.02 |
% |
|
63.36 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of Non-GAAP Tangible Common Equity
Ratio: |
|
|
|
Total shareholders’ equity (GAAP) |
$ |
4,115,995 |
|
|
$ |
4,074,089 |
|
|
$ |
3,990,218 |
|
|
$ |
3,700,393 |
|
|
$ |
3,691,250 |
|
|
|
|
Less: Non-convertible preferred stock (GAAP) |
(412,500 |
) |
|
(412,500 |
) |
|
(412,500 |
) |
|
(125,000 |
) |
|
(125,000 |
) |
|
|
|
Less: Intangible assets (GAAP) |
(681,747 |
) |
|
(683,314 |
) |
|
(685,581 |
) |
|
(687,626 |
) |
|
(692,277 |
) |
|
|
|
(I) Total tangible common shareholders’ equity (non-GAAP) |
$ |
3,021,748 |
|
|
$ |
2,978,275 |
|
|
$ |
2,892,137 |
|
|
$ |
2,887,767 |
|
|
$ |
2,873,973 |
|
|
|
|
(J) Total assets (GAAP) |
$ |
45,080,768 |
|
|
$ |
43,731,718 |
|
|
$ |
43,540,017 |
|
|
$ |
38,799,847 |
|
|
$ |
36,620,583 |
|
|
|
|
Less: Intangible assets (GAAP) |
(681,747 |
) |
|
(683,314 |
) |
|
(685,581 |
) |
|
(687,626 |
) |
|
(692,277 |
) |
|
|
|
(K) Total tangible assets (non-GAAP) |
$ |
44,399,021 |
|
|
$ |
43,048,404 |
|
|
$ |
42,854,436 |
|
|
$ |
38,112,221 |
|
|
$ |
35,928,306 |
|
|
|
|
Common equity to assets ratio (GAAP) (L/J) |
8.2 |
% |
|
8.4 |
% |
|
8.2 |
% |
|
9.2 |
% |
|
9.7 |
% |
|
|
|
Tangible common equity ratio (non-GAAP) (I/K) |
6.8 |
% |
|
6.9 |
% |
|
6.7 |
% |
|
7.6 |
% |
|
8.0 |
% |
|
|
|
|
Three Months Ended |
Years Ended |
|
Dec 31, |
|
Sep 30, |
|
Jun 30, |
|
Mar 31, |
|
Dec 31, |
Dec 31, |
|
Dec 31, |
(Dollars and shares in thousands) |
2020 |
|
2020 |
|
2020 |
|
2020 |
|
2019 |
2020 |
|
2019 |
Reconciliation of Non-GAAP Tangible Book Value per Common
Share: |
|
|
|
Total shareholders’ equity |
$ |
4,115,995 |
|
|
$ |
4,074,089 |
|
|
$ |
3,990,218 |
|
|
$ |
3,700,393 |
|
|
$ |
3,691,250 |
|
|
|
|
Less: Preferred stock |
(412,500 |
) |
|
(412,500 |
) |
|
(412,500 |
) |
|
(125,000 |
) |
|
(125,000 |
) |
|
|
|
(L) Total common equity |
$ |
3,703,495 |
|
|
$ |
3,661,589 |
|
|
$ |
3,577,718 |
|
|
$ |
3,575,393 |
|
|
$ |
3,566,250 |
|
|
|
|
(M) Actual common shares outstanding |
56,770 |
|
|
57,602 |
|
|
57,574 |
|
|
57,545 |
|
|
57,822 |
|
|
|
|
Book value per common share (L/M) |
$ |
65.24 |
|
|
$ |
63.57 |
|
|
$ |
62.14 |
|
|
$ |
62.13 |
|
|
$ |
61.68 |
|
|
|
|
Tangible book value per common share (non-GAAP)
(I/M) |
$ |
53.23 |
|
|
$ |
51.70 |
|
|
$ |
50.23 |
|
|
$ |
50.18 |
|
|
$ |
49.70 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of Non-GAAP Return on Average Tangible
Common Equity: |
|
|
|
(N) Net income applicable to common shares |
$ |
94,213 |
|
|
$ |
97,029 |
|
|
$ |
19,609 |
|
|
$ |
60,762 |
|
|
$ |
83,914 |
|
$ |
271,613 |
|
|
$ |
347,497 |
|
Add: Intangible asset amortization |
2,634 |
|
|
2,701 |
|
|
2,820 |
|
|
2,863 |
|
|
3,017 |
|
11,018 |
|
|
11,844 |
|
Less: Tax effect of intangible asset amortization |
(656 |
) |
|
(589 |
) |
|
(832 |
) |
|
(799 |
) |
|
(793 |
) |
(2,732 |
) |
|
(3,068 |
) |
After-tax intangible asset amortization |
1,978 |
|
|
2,112 |
|
|
1,988 |
|
|
2,064 |
|
|
2,224 |
|
8,286 |
|
|
8,776 |
|
(O) Tangible net income applicable to common shares (non-GAAP) |
$ |
96,191 |
|
|
$ |
99,141 |
|
|
$ |
21,597 |
|
|
$ |
62,826 |
|
|
$ |
86,138 |
|
$ |
279,899 |
|
|
$ |
356,273 |
|
Total average shareholders' equity |
$ |
4,050,286 |
|
|
$ |
4,034,902 |
|
|
$ |
3,908,846 |
|
|
$ |
3,710,169 |
|
|
$ |
3,622,184 |
|
$ |
3,926,688 |
|
|
$ |
3,461,535 |
|
Less: Average preferred stock |
(412,500 |
) |
|
(412,500 |
) |
|
(273,489 |
) |
|
(125,000 |
) |
|
(125,000 |
) |
(306,455 |
) |
|
(125,000 |
) |
(P) Total average common shareholders' equity |
$ |
3,637,786 |
|
|
$ |
3,622,402 |
|
|
$ |
3,635,357 |
|
|
$ |
3,585,169 |
|
|
$ |
3,497,184 |
|
$ |
3,620,233 |
|
|
$ |
3,336,535 |
|
Less: Average intangible assets |
(682,290 |
) |
|
(684,717 |
) |
|
(686,526 |
) |
|
(690,777 |
) |
|
(689,286 |
) |
(686,064 |
) |
|
(641,802 |
) |
(Q) Total average tangible common shareholders’ equity
(non-GAAP) |
$ |
2,955,496 |
|
|
$ |
2,937,685 |
|
|
$ |
2,948,831 |
|
|
$ |
2,894,392 |
|
|
$ |
2,807,898 |
|
$ |
2,934,169 |
|
|
$ |
2,694,733 |
|
Return on average common equity, annualized
(N/P) |
10.30 |
% |
|
10.66 |
% |
|
2.17 |
% |
|
6.82 |
% |
|
9.52 |
% |
7.50 |
% |
|
10.41 |
% |
Return on average tangible common equity, annualized
(non-GAAP) (O/Q) |
12.95 |
% |
|
13.43 |
% |
|
2.95 |
% |
|
8.73 |
% |
|
12.17 |
% |
9.54 |
% |
|
13.22 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of Non-GAAP Pre-Tax, Pre-Provision
Income: |
|
|
|
|
|
Income before taxes |
$ |
134,711 |
|
|
$ |
137,284 |
|
|
$ |
30,703 |
|
|
$ |
87,083 |
|
|
$ |
116,682 |
|
$ |
389,781 |
|
|
$ |
480,101 |
|
Add: Provision for credit losses |
1,180 |
|
|
25,026 |
|
|
135,053 |
|
|
52,961 |
|
|
7,826 |
|
214,220 |
|
|
53,864 |
|
Pre-tax income, excluding provision for credit losses
(non-GAAP) |
$ |
135,891 |
|
|
$ |
162,310 |
|
|
$ |
165,756 |
|
|
$ |
140,044 |
|
|
$ |
124,508 |
|
$ |
604,001 |
|
|
$ |
533,965 |
|
Reconciliation of Non-GAAP Pre-Tax, Pre-Provision
Income: |
Years Ended |
|
Dec 31, |
Dec 31, |
Dec 31, |
Dec 31, |
Dec 31, |
Dec 31, |
Dec 31, |
Dec 31, |
Dec 31, |
|
2018 |
2017 |
2016 |
2015 |
2014 |
2013 |
2012 |
2011 |
2010 |
Income before taxes |
$ |
460,133 |
|
$ |
389,997 |
|
$ |
331,854 |
|
$ |
251,765 |
|
$ |
246,431 |
|
$ |
224,440 |
|
$ |
180,132 |
|
$ |
128,033 |
|
$ |
100,807 |
|
Add: Provision for credit losses |
34,832 |
|
|
29,768 |
|
|
34,084 |
|
|
32,942 |
|
|
20,537 |
|
|
46,033 |
|
|
76,436 |
|
|
102,638 |
|
|
124,664 |
|
Pre-tax income, excluding provision for credit losses
(non-GAAP) |
$ |
494,965 |
|
$ |
419,765 |
|
$ |
365,938 |
|
$ |
284,707 |
|
$ |
266,968 |
|
$ |
270,473 |
|
$ |
256,568 |
|
$ |
230,671 |
|
$ |
225,471 |
|
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, N.A., 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,
N.A. and Town Bank, N.A., in Hartland, Wisconsin.
In addition to the locations noted above, the
banks also operate facilities in Illinois in Addison, Algonquin,
Aurora, Bloomingdale, Bolingbrook, Buffalo Grove, Burbank, Cary,
Clarendon Hills, Crete, Countryside, Darien, 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, Homer Glen, Itasca, Joliet, Lake Bluff, Lake
Villa, Lansing, Lemont, Lindenhurst, Lynwood, Markham, Maywood,
McHenry, Mokena, Mount Prospect, Mundelein, Naperville, North
Chicago, Northfield, Norridge, Oak Lawn, Oak Brook, Orland Park,
Palatine, Park Ridge, Prospect Heights, Ravinia, Riverside, Rolling
Meadows, Round Lake Beach, Shorewood, Skokie, South Holland, Spring
Grove, Steger, Stone Park, Vernon Hills, Wauconda, Waukegan,
Western Springs, Willowbrook, Wilmette, Winnetka and Wood Dale, and
in Wisconsin 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, and 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, such
as the impacts of the COVID-19 pandemic, and which may include, but
are not limited to, those listed below and the Risk Factors
discussed under Item 1A of the Company’s 2019 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:
- the severity, magnitude and
duration of the COVID-19 pandemic and the direct and indirect
impact of such pandemic, as well as responses to the pandemic by
the government, businesses and consumers, on our operations and
personnel, commercial activity and demand across our business and
our customers’ businesses;
- the disruption of global, national,
state and local economies associated with the COVID-19 pandemic,
which could affect the Company’s liquidity and capital positions,
impair the ability of our borrowers to repay outstanding loans,
impair collateral values and further increase our allowance for
credit losses;
- the impact of the COVID-19 pandemic
on our financial results, including possible lost revenue and
increased expenses (including the cost of capital), as well as
possible goodwill impairment charges;
- 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 credit
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
(including developments and volatility arising from or related to
the COVID-19 pandemic) that may affect, among other things, the
Company’s liquidity and the value of its assets and
liabilities;
- a prolonged period of near zero
interest rates or potentially negative interest rates, either
broadly or for some types of instruments, which may affect the
Company’s net interest income and net interest margin, and which
could materially adversely affect the Company’s profitability;
- 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;
- liabilities, potential customer
loss or reputational harm related to closings of existing
branches;
- 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 related
changes to address the impact of COVID-19, and the impact on the
Company’s financial statements;
- the ability of the Company to
receive dividends from its subsidiaries;
- uncertainty about the discontinued
use of LIBOR and transition to an alternative rate;
- 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, including those changes that are in response to the
COVID-19 pandemic, including without limitation the CARES Act, the
Economic Aid to Hard-Hit Small Businesses, Nonprofits and Venues
Act, and the rules and regulations that may be promulgated
thereunder;
- a lowering of our credit
rating;
- changes in U.S. monetary policy and
changes to the Federal Reserve’s balance sheet, including changes
in response to the COVID-19 pandemic or otherwise;
- regulatory restrictions upon our
ability to market our products to consumers and limitations on our
ability to profitably operate our mortgage business;
- 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, January 21, 2021 at 10:00 a.m. (Central Time) regarding
fourth quarter and full year 2020 results. Individuals interested
in listening should call (877) 363-5049 and enter Conference
ID #9780585. 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 fourth
quarter and full year 2020 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, Founder & Chief Executive Officer
David A. Dykstra, Vice Chairman & Chief Operating
Officer
(847) 939-9000
Web site address: www.wintrust.com
Wintrust Financial (NASDAQ:WTFC)
Historical Stock Chart
From May 2024 to Jun 2024
Wintrust Financial (NASDAQ:WTFC)
Historical Stock Chart
From Jun 2023 to Jun 2024