ROSEMONT, Ill., July 19, 2021 (GLOBE NEWSWIRE)
-- Wintrust Financial Corporation ("Wintrust", "the Company", "we"
or "our") (Nasdaq: WTFC) announced net income of $105.1 million or
$1.70 per diluted common share for the second quarter of 2021, a
decrease in diluted earnings per common share of 33% compared to
the first quarter of 2021 and an increase of 400% compared to the
second quarter of 2020. The Company recorded net income of $258.3
million or $4.24 per diluted common share for the first six months
of 2021 compared to net income of $84.5 million or $1.38 per
diluted common share for the same period of 2020.
Highlights of the Second Quarter of
2021:
Comparative information to the first quarter of 2021
- Total loans, excluding Paycheck Protection Program ("PPP")
loans, increased by $1.2 billion or 15%, on an annualized basis.
- Core loans increased by $497 million and niche loans increased
by $657 million primarily due to growth in the commercial insurance
premium finance receivable portfolio. See Table 1 for more
information.
- PPP loans declined by $1.4 billion in the second quarter of
2021 primarily as a result of processing forgiveness payments on
PPP loan balances originated in 2020. As of June 30, 2021,
approximately 81% of PPP loan balances originated in 2020 have been
forgiven, approximately 12% of balances are in the forgiveness
review or submission process, and approximately 7% of balances have
not applied for forgiveness.
- Total assets increased by $1.1 billion.
- Total deposits increased by $932 million, including a $499
million increase in non-interest bearing deposits.
- Net interest income increased by $17.7 million primarily due to
earning asset growth and increased PPP loan fee accretion.
- In the second quarter of 2021, average loans and average
investment securities increased by $642 million and $827 million,
respectively, as compared to first quarter of 2021.
- The Company recognized $25.2 million of PPP loan fee accretion
in the second quarter of 2021 as compared to $19.2 million in the
first quarter of 2021.
- Net interest margin increased by nine basis points primarily
due to increased PPP loan fee accretion and a seven basis point
decline on the rate paid on interest bearing deposits.
- Mortgage banking revenue decreased to $50.6 million for the
second quarter of 2021 as compared to $113.5 million in the first
quarter of 2021.
- Recorded a negative provision for credit losses of $15.3
million in the second quarter of 2021 as compared to a negative
provision for credit losses of $45.3 million in the first quarter
of 2021.
- Recorded net charge-offs of $1.9 million in the second quarter
of 2021 as compared to net charge-offs of $13.3 million in the
first quarter of 2021. Net charge-offs as a percentage of average
total loans totaled two basis points in the second quarter of 2021
on an annualized basis as compared to 17 basis points on an
annualized basis in the first quarter of 2021.
- The allowance for credit losses on our core loan portfolio is
approximately 1.49% of the outstanding balance as of June 30, 2021,
down from 1.62% as of March 31, 2021. See Table 12 for more
information. The allowance for credit losses to nonaccrual loans
increased to 367.6% at June 30, 2021 compared to 341.3% as of March
31, 2021.
- Non-performing loans declined to $87.7 million, or 0.27% of
total loans, as of June 30, 2021 as compared to $99.1 million, or
0.30% of total loans, as of March 31, 2021.
- Tangible book value per common share (non-GAAP) increased to
$56.92 as compared to $55.42 as of March 31, 2021. See Table
18 for reconciliation of non-GAAP measures.
- Closed on the previously announced sale of three branches in
southwestern Wisconsin including $77 million of deposits, resulting
in a net gain of $4.0 million recorded in other non-interest
income.
Edward J. Wehmer, Founder and Chief Executive
Officer, commented, "Wintrust reported net income of $105.1 million
for the second quarter of 2021, down from $153.1 million in the
first quarter of 2021. On a year-to-date basis, net income totaled
$258.3 million for the first six months of 2021, up from $84.5
million in the first six months of 2020, a 206% increase.
Additionally, the Company continues to grow as total assets of
$46.7 billion as of June 30, 2021 increased by $1.1 billion as
compared to March 31, 2021 and increased by $3.2 billion as
compared to June 30, 2020. The second quarter of 2021 was
characterized by strong organic loan growth, increased net interest
income, a decline in mortgage banking revenue, a release of
reserves as our credit quality and macroeconomic forecasts improved
and a continued focus to increase franchise value in our market
area."
Mr. Wehmer continued, "The Company experienced
loan growth, excluding PPP loans, of $1.2 billion or 15%, on an
annualized basis in the second quarter of 2021, including growth in
its commercial, commercial real estate, residential real estate
loans for investment, commercial insurance premium finance
receivable and life insurance premium receivable portfolios. The
loan growth was driven significantly by $563 million of growth in
the commercial insurance premium finance receivable portfolio in
part due to favorable market conditions for that portfolio. We are
experiencing historically low commercial line of credit utilization
and believe that a reversion to normal levels, coupled with robust
loan pipelines, will materialize in future loan growth. Total
deposits increased by $932 million as compared to the first quarter
of 2021 including an increase in non-interest bearing deposits
which now comprise 33% of total 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 84.8% and we believe that we have
sufficient liquidity to meet customer loan demand."
Mr. Wehmer commented, "Net interest income
increased in the second quarter of 2021 primarily due to earning
asset growth and increased PPP loan fee accretion. The Company
recognized $25.2 million of PPP loan fee accretion in the second
quarter of 2021 as compared to $19.2 million in the first quarter
of 2021. Net interest margin improved by nine basis points in the
second quarter of 2021 as compared to the first quarter of 2021
primarily due to increased PPP loan fee accretion and a seven basis
point decline on the rate paid on interest bearing deposits. We
continue to maintain excess liquidity and believe that deploying
such liquidity could potentially increase our net interest margin.
However, given the decline in long-term interest rates in the
second quarter of 2021, we did not materially increase our
investment portfolio due to the lack of adequate market
returns."
Mr. Wehmer noted, “We recorded mortgage banking
revenue of $50.6 million in the second quarter of 2021 as compared
to $113.5 million in the first quarter of 2021. Loan volumes
originated for sale in the second quarter of 2021 were $1.7
billion, down from $2.2 billion in the first quarter of 2021.
Production margin in the second quarter of 2021 was impacted by
lower gain on sale margins and a decline in the mortgage
originations pipeline. Additionally, the Company recorded a $5.5
million decrease in the value of mortgage servicing rights related
to changes in fair value model assumptions as compared to an $18.0
million increase recognized in the first quarter of 2021. We
believe the third quarter of 2021 will provide another strong
quarter for mortgage banking originations."
Commenting on credit quality, Mr. Wehmer stated,
"The Company recorded a negative provision for credit losses of
$15.3 million in the second quarter of 2021 related to both
improving credit quality and macroeconomic forecasts. The level of
non-performing loans decreased by $11.4 million primarily due to
non-performing loan payments received during the quarter.
Additionally, net charge-offs were limited totaling $1.9 million in
the second quarter of 2021 as compared to $13.3 million in the
first quarter of 2021. The allowance for credit losses on our core
loan portfolio as of June 30, 2021 is approximately 1.49% of the
outstanding balance. We believe that the Company’s reserves remain
appropriate and we remain diligent in our review of credit."
Mr. Wehmer concluded, "Our second quarter of
2021 results continued to demonstrate the multi-faceted nature of
our business model which we believe uniquely positions us to be
successful. We expect to leverage our differentiated, diversified
loan portfolio to outperform peers with respect to loan growth
which should allow us to expand net interest income. We are focused
on taking advantage of market opportunities to prudently deploy
excess liquidity into earning assets including core and niche loans
and investment securities while maintaining an interest rate
sensitive asset portfolio. We are opportunistically evaluating the
acquisition market which has been active for both banks and
business lines of various sizes. Of course, we remain diligent in
our consideration of acquisition targets and will be prudent in our
decision-making, always seeking to minimize dilution. Finally, we
evaluate our operating expense base on an ongoing basis to enhance
future profitability."
The graphs below illustrate certain financial
highlights of the second quarter of 2021 as well as historical
financial performance. See "Supplemental Non-GAAP Financial
Measures/Ratios" at Table 18 for additional information with
respect to non-GAAP financial measures/ratios, including the
reconciliations to the corresponding GAAP financial
measures/ratios.
Graphs available at the following
link: http://ml.globenewswire.com/Resource/Download/595e1742-6ae7-4c87-8c43-4cf31dd4b13e
SUMMARY OF RESULTS:
BALANCE SHEET
Total asset growth of $1.1 billion in the second
quarter of 2021 was primarily comprised of a $1.4 billion increase
in interest bearing deposits with banks, a $1.2 billion increase in
total loans, excluding PPP loans, and an $86 million increase in
investment securities. These increases were partially offset by a
$1.4 billion decrease in PPP loans and a $275 million decrease in
mortgage loans held-for-sale. Total loans, excluding PPP loans,
increased by $1.2 billion primarily due to growth in the
commercial, commercial real estate, residential real estate loans
for investment, commercial insurance premium finance receivable and
life insurance premium receivable portfolios. The Company believes
that the $4.7 billion of interest-bearing deposits with banks held
as of June 30, 2021 provides sufficient liquidity to operate
its business plan.
Total liabilities increased $970 million in the
second quarter of 2021 resulting primarily from a $932 million
increase in total deposits. The increase in deposits was primarily
due to a $607 million increase in money market deposits and a $499
million increase in non-interest bearing deposits. The Company’s
loans to deposits ratio ended the quarter at 84.8%. 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 second quarter of 2021, net interest
income totaled $279.6 million, an increase of $17.7 million as
compared to the first quarter of 2021 and an increase of $16.5
million as compared to the second quarter of 2020. The $17.7
million increase in net interest income in the second quarter of
2021 compared to the first quarter of 2021 was primarily due to
earning asset growth and increased PPP loan fee accretion. The
Company recognized $25.2 million of PPP loan fee accretion in the
second quarter of 2021 as compared to $19.2 million in the first
quarter of 2021. As of June 30, 2021, the Company had approximately
$42.3 million of net PPP loan fees that have yet to be recognized
in income, with approximately $24.0 million projected to be
recognized in income in the second half of 2021. Such projection is
based on current level yield assumptions primarily driven by the
estimated timing of expected cash flow receipts related to
forgiveness.
Net interest margin was 2.62% (2.63% on a fully
taxable-equivalent basis, non-GAAP) during the second quarter of
2021 compared to 2.53% (2.54% on a fully taxable-equivalent basis,
non-GAAP) during the first quarter of 2021 and down from 2.73%
(2.74% on a fully taxable-equivalent basis, non-GAAP) during the
second quarter of 2020. The net interest margin increase as
compared to the prior quarter was primarily due to the seven basis
point decrease in the rate paid on interest-bearing liabilities and
a four basis point increase in the yield on earning assets
partially offset by a two basis point decrease in the net free
funds contribution. The decrease in the rate paid on
interest-bearing liabilities in the second quarter of 2021 as
compared to the prior quarter is primarily due to a seven basis
point decrease in the rate paid on interest-bearing deposits
primarily due to lower repricing of time deposits. The four basis
point increase in the yield on earning assets in the second quarter
of 2021 as compared to the first quarter of 2021 was primarily due
to a 13 basis point increase in yield on liquidity management
assets as a result of purchases of investment securities toward the
end of the first quarter of 2021 and a three basis point increase
in yield earned on loans.
For more information regarding net interest
income, see Tables 4 through 8 in this report.
ASSET QUALITY
The allowance for credit losses totaled $304.1
million as of June 30, 2021, a decrease of $17.2 million as
compared to $321.3 million as of March 31, 2021. The allowance
for credit losses decreased primarily due to improvements in the
macroeconomic forecast in addition to improvement in portfolio
characteristics throughout the quarter. Notably, there was a
decrease in the allowance for credit losses in the Commercial Real
Estate portfolio primarily driven by improvement in the forecasts
of the Commercial Real Estate Price Index and Baa Corporate Credit
Spreads. Other key drivers of allowance for credit losses changes
include, but are not limited to, decreases in COVID-19 related loan
modifications and positive loan risk rating migrations.
A negative provision for credit losses totaling
$15.3 million was recorded for the second quarter of 2021 compared
to a negative provision of $45.3 million for the first quarter of
2021 and $135.1 million of expense for the second quarter of 2020.
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 each portfolio as of
June 30, 2021, March 31, 2021, and December 31, 2020
is shown on Table 12 of this report.
Net charge-offs totaled $1.9 million in the
second quarter of 2021, an $11.4 million decrease from $13.3
million in the first quarter of 2021 and a $13.5 million decrease
from $15.4 million in the second quarter of 2020. Net charge-offs
as a percentage of average total loans totaled two basis points in
the second quarter of 2021 on an annualized basis compared to 17
basis points on an annualized basis in the first quarter of 2021
and 20 basis points on an annualized basis in the second quarter of
2020. For more information regarding net charge-offs, see Table 10
in this report.
As of June 30, 2021, $19.3 million of all
loans, or 0.1%, were 60 to 89 days past due and $73.9 million, or
0.2%, were 30 to 59 days (or one payment) past due. As of
March 31, 2021, $28.0 million of all loans, or 0.1%, were 60
to 89 days past due and $151.7 million, or 0.5%, were 30 to 59 days
(or one payment) past due. Many of the commercial and commercial
real-estate loans shown as 60 to 89 days and 30 to 59 days past due
are included on the Company’s internal problem loan reporting
system. Loans on this system are closely monitored by management on
a monthly basis.
The Company’s home equity and residential real
estate loan portfolios continue to exhibit low delinquency rates as
of June 30, 2021. Home equity loans at June 30, 2021 that
are current with regard to the contractual terms of the loan
agreement represent 98.8% of the total home equity portfolio.
Residential real estate loans at June 30, 2021 that are
current with regards to the contractual terms of the loan
agreements comprised 98.3% of total residential real estate loans
outstanding. For more information regarding past due loans, see
Table 13 in this report.
The outstanding balance of COVID-19 related
modified loans totaled approximately $146 million or 0.5% of total
loans, excluding PPP loans as of June 30, 2021 as compared to
$254 million or 0.8% as of March 31, 2021. The most
significant proportion of outstanding modifications changed terms
to interest-only payments.
The ratio of non-performing assets to total
assets was 0.22% as of June 30, 2021, compared to 0.25% at
March 31, 2021, and 0.46% at June 30, 2020.
Non-performing assets totaled $103.3 million at June 30, 2021,
compared to $114.9 million at March 31, 2021 and $198.5
million at June 30, 2020. Non-performing loans totaled $87.7
million, or 0.27% of total loans, at June 30, 2021 compared to
$99.1 million, or 0.30% of total loans, at March 31, 2021 and
$188.3 million, or 0.60% of total loans, at June 30, 2020. The
decrease in non-performing loans as of June 30, 2021 as
compared to March 31, 2021 is primarily due to payments
throughout the quarter. OREO totaled $15.6 million at June 30,
2021, a decrease of $241,000 compared to $15.8 million at
March 31, 2021 and an increase of $5.4 million compared to
$10.2 million at June 30, 2020. 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 $1.4
million during the second quarter of 2021 as compared to the first
quarter of 2021 primarily due to increased trust and asset
management fees. Wealth management revenue is comprised of the
trust and asset management revenue of The Chicago Trust Company and
Great Lakes Advisors, the brokerage commissions, managed money fees
and insurance product commissions at Wintrust Investments and fees
from tax-deferred like-kind exchange services provided by the
Chicago Deferred Exchange Company.
Mortgage banking revenue decreased by $62.9
million in the second quarter of 2021 as compared to the first
quarter of 2021, primarily due to a $33.8 million decrease in
production revenue from lower originations for sale and lower gain
on sale margins and a $5.5 million unfavorable mortgage servicing
rights portfolio fair value adjustment as compared to an $18.0
million increase recognized in the prior quarter related to changes
in fair value model assumptions. Loans originated for sale were
$1.7 billion in the second quarter of 2021, a decrease of $498.0
million as compared to the first quarter of 2021. The percentage of
origination volume from refinancing activities was 47% in the
second quarter of 2021 as compared to 73% in the first quarter of
2021. Mortgage banking revenue includes revenue from activities
related to originating, selling and servicing residential real
estate loans for the secondary market.
During the second quarter of 2021, the fair
value of the mortgage servicing rights portfolio increased
primarily due to the capitalization of $17.5 million of servicing
rights partially offset by a reduction in value of $8.5 million due
to payoffs and paydowns of the existing portfolio and a fair value
adjustment decrease of $5.5 million. No economic hedges were
outstanding relative to the mortgage servicing rights portfolio
during the first or second quarter of 2021.
Operating lease income decreased by $2.2 million
in the second quarter of 2021 as compared to the first quarter of
2021. The decrease is primarily due to a $1.5 million gain
recognized on sale of lease assets in the first quarter of
2021.
Other non-interest income increased by $4.7
million in the second quarter of 2021 as compared to the first
quarter of 2021 primarily due to a $4.0 million net gain
recorded on the previously announced sale of three branches in
southwestern Wisconsin.
For more information regarding non-interest
income, see Tables 15 and 16 in this report.
NON-INTEREST EXPENSE
Salaries and employee benefits expense decreased
by $8.0 million in the second quarter of 2021 as compared to the
first quarter of 2021. The $8.0 million decrease is comprised of a
decrease of $7.6 million in commissions and incentive compensation
and a decrease of $412,000 in employee benefits expense. Salaries
expense was effectively unchanged from the first quarter of 2021 to
the second quarter of 2021. The decrease in commissions and
incentive compensation is primarily due to lower commissions
related to a decline in total mortgage originations for sale and
investment.
Advertising and marketing expense totaled $11.3
million in the second quarter of 2021, an increase of $2.8 million
as compared to the first quarter of 2021. The increase in the
second quarter relates primarily to increased sponsorship activity
for the summer months. 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 second quarter of
2021 decreased by $55,000 as compared to the first quarter of 2021.
The second quarter of 2021 included a $1.4 million reversal of
contingent consideration expense related to the previous
acquisition of mortgage operations as compared to a $937,000
reversal of contingent consideration expense in the first quarter
of 2021. 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. 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 $39.0
million in the second quarter of 2021 compared to $53.7 million in
the first quarter of 2021 and $9.0 million in the second quarter of
2020. The effective tax rates were 27.08% in the second quarter of
2021 compared to 25.97% in the first quarter of 2021 and 29.46% in
the second quarter of 2020.
The slightly higher effective tax rate in the
second quarter of 2021 as compared to the first quarter of 2021 was
primarily due to the recognition of excess tax benefits on stock
compensation in the first quarter, and the higher effective rate in
the second quarter of 2020 as compared to the 2021 periods was
primarily a result of a significantly reduced amount of pretax
income in the period.
BUSINESS UNIT SUMMARY
Community Banking
Through its community banking unit, the Company
provides banking and financial services primarily to individuals,
small to mid-sized businesses, local governmental units and
institutional clients residing primarily in the local areas the
Company services. In the second quarter of 2021, this unit expanded
its loan portfolio and its deposit portfolio. In addition, the
segment’s net interest margin increased in the second quarter of
2021 as compared to the first quarter of 2021.
Mortgage banking revenue was $50.6 million for
the second quarter of 2021, a decrease of $62.9 million as compared
to the first quarter of 2021 primarily due to a $33.8 million
decrease in production revenue resulting from lower originations
for sale and lower gain on sale margins and a $5.5 million decrease
in the value of mortgage servicing rights related to changes in
fair value model assumptions as compared to an $18.0 million
favorable fair value adjustment in the prior quarter related to
changes in fair value model assumptions. Service charges on deposit
accounts totaled $13.2 million in the second quarter of 2021, an
increase of $1.2 million as compared to the first quarter of 2021
primarily due to higher account analysis fees. The Company’s gross
commercial and commercial real estate loan pipelines remained
strong as of June 30, 2021. Before the impact of scheduled
payments and prepayments, gross commercial and commercial real
estate loan pipelines were estimated to be approximately $1.2
billion to $1.3 billion at June 30, 2021. When adjusted for
the probability of closing, the pipelines were estimated to be
approximately $700 million to $800 million at June 30,
2021.
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 $3.4 billion during
the second quarter of 2021 and average balances increased by $472.8
million as compared to the first quarter of 2021. The increase in
average balances in the insurance premium finance receivables
portfolios more than offset the related margin compression,
attributed to lower market rates of interest, resulting in a $3.0
million increase in interest income. The Company’s leasing business
remained effectively unchanged from the first quarter of 2021 to
the second quarter of 2021, with its portfolio of assets, including
capital leases, loans and equipment on operating leases, at $2.2
billion at the end of the second quarter of 2021. Revenues from the
Company’s out-sourced administrative services business were $1.2
million in the second quarter of 2021, essentially unchanged from
the first quarter of 2021.
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 $30.7 million in the
second quarter of 2021, an increase of $1.4 million compared to the
first quarter of 2021. Increases in asset management fees were
primarily due to favorable equity market performance during the
second quarter of 2021. At June 30, 2021, the Company’s wealth
management subsidiaries had approximately $34.2 billion of assets
under administration, which included $4.7 billion of assets owned
by the Company and its subsidiary banks, representing a $2.0
billion increase from the $32.2 billion of assets under
administration at March 31, 2021.
WINTRUST FINANCIAL
CORPORATION
Key Operating
Measures
Wintrust’s key operating measures and growth
rates for the second quarter of 2021, as compared to the first
quarter of 2021 (sequential quarter) and second quarter of 2020
(linked quarter), are shown in the table below:
|
|
|
|
|
|
|
% or(1)
basis point (bp)
change from 1st
Quarter 2021 |
|
% or basis point
(bp) change from 2nd
Quarter
2020 |
|
|
Three Months Ended |
|
(Dollars in thousands, except per share data) |
|
Jun 30, 2021 |
|
Mar 31, 2021 |
|
Jun 30, 2020 |
|
Net income |
|
$ |
105,109 |
|
|
$ |
153,148 |
|
|
$ |
21,659 |
|
(31 |
) |
|
% |
|
385 |
|
|
% |
Pre-tax
income, excluding provision for credit losses (non-GAAP)
(2) |
|
128,851 |
|
|
161,512 |
|
|
165,756 |
|
(20 |
) |
|
|
|
(22 |
) |
|
|
Net
income per common share – diluted |
|
1.70 |
|
|
2.54 |
|
|
0.34 |
|
(33 |
) |
|
|
|
400 |
|
|
|
Net
revenue (3) |
|
408,963 |
|
|
448,401 |
|
|
425,124 |
|
(9 |
) |
|
|
|
(4 |
) |
|
|
Net
interest income |
|
279,590 |
|
|
261,895 |
|
|
263,131 |
|
7 |
|
|
|
|
6 |
|
|
|
Net
interest margin |
|
2.62 |
% |
|
2.53 |
% |
|
2.73 |
% |
9 |
|
|
bps |
|
(11 |
) |
|
bps |
Net
interest margin - fully taxable equivalent (non-GAAP)
(2) |
|
2.63 |
|
|
2.54 |
|
|
2.74 |
|
9 |
|
|
|
|
(11 |
) |
|
|
Net
overhead ratio (4) |
|
1.32 |
|
|
0.90 |
|
|
0.93 |
|
42 |
|
|
|
|
39 |
|
|
|
Return on
average assets |
|
0.92 |
|
|
1.38 |
|
|
0.21 |
|
(46 |
) |
|
|
|
71 |
|
|
|
Return on
average common equity |
|
10.24 |
|
|
15.80 |
|
|
2.17 |
|
(556 |
) |
|
|
|
807 |
|
|
|
Return on average tangible common equity (non-GAAP)
(2) |
|
12.62 |
|
|
19.49 |
|
|
2.95 |
|
(687 |
) |
|
|
|
967 |
|
|
|
At end of period |
|
|
|
|
|
|
|
|
|
|
|
Total
assets |
|
$ |
46,738,450 |
|
$ |
45,682,202 |
|
$ |
43,540,017 |
9 |
|
|
% |
|
7 |
|
|
% |
Total
loans (5) |
|
32,911,187 |
|
33,171,233 |
|
31,402,903 |
(3 |
) |
|
|
|
5 |
|
|
|
Total
deposits |
|
38,804,616 |
|
37,872,652 |
|
35,651,874 |
10 |
|
|
|
|
9 |
|
|
|
Total shareholders’ equity |
|
4,339,011 |
|
4,252,511 |
|
3,990,218 |
8 |
|
|
|
|
9 |
|
|
|
(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
Selected Financial Highlights
|
|
Three Months Ended |
Six Months Ended |
(Dollars in thousands, except per share data) |
|
Jun 30,
2021 |
|
Mar 31,
2021 |
|
Dec 31,
2020 |
|
Sep 30,
2020 |
|
Jun 30,
2020 |
Jun 30,
2021 |
|
Jun 30,
2020 |
Selected Financial Condition Data (at end of
period): |
|
|
|
Total
assets |
|
$ |
46,738,450 |
|
|
$ |
45,682,202 |
|
|
$ |
45,080,768 |
|
|
$ |
43,731,718 |
|
$ |
43,540,017 |
|
|
|
|
Total
loans (1) |
|
|
32,911,187 |
|
|
|
33,171,233 |
|
|
|
32,079,073 |
|
|
32,135,555 |
|
|
31,402,903 |
|
|
|
|
Total
deposits |
|
|
38,804,616 |
|
|
|
37,872,652 |
|
|
|
37,092,651 |
|
|
35,844,422 |
|
|
35,651,874 |
|
|
|
|
Junior
subordinated debentures |
|
|
253,566 |
|
|
|
253,566 |
|
|
|
253,566 |
|
|
253,566 |
|
|
253,566 |
|
|
|
|
Total shareholders’ equity |
|
|
4,339,011 |
|
|
|
4,252,511 |
|
|
|
4,115,995 |
|
|
4,074,089 |
|
|
3,990,218 |
|
|
|
|
Selected Statements of Income Data: |
|
|
|
Net interest income |
|
$ |
279,590 |
|
|
$ |
261,895 |
|
|
$ |
259,397 |
|
|
$ |
255,936 |
|
|
$ |
263,131 |
|
$ |
541,485 |
|
|
$ |
524,574 |
|
Net
revenue (2) |
|
408,963 |
|
|
448,401 |
|
|
417,758 |
|
|
426,529 |
|
|
425,124 |
|
857,364 |
|
|
799,809 |
|
Net
income |
|
105,109 |
|
|
153,148 |
|
|
101,204 |
|
|
107,315 |
|
|
21,659 |
|
258,257 |
|
|
84,471 |
|
Pre-tax
income, excluding provision for credit losses (non-GAAP)
(3) |
|
128,851 |
|
|
161,512 |
|
|
135,891 |
|
|
162,310 |
|
|
165,756 |
|
290,363 |
|
|
305,800 |
|
Net
income per common share – Basic |
|
1.72 |
|
|
2.57 |
|
|
1.64 |
|
|
1.68 |
|
|
0.34 |
|
4.29 |
|
|
1.40 |
|
Net income per common share – Diluted |
|
1.70 |
|
|
2.54 |
|
|
1.63 |
|
|
1.67 |
|
|
0.34 |
|
4.24 |
|
|
1.38 |
|
Selected Financial Ratios and Other Data: |
|
|
|
Performance Ratios: |
|
|
|
Net
interest margin |
|
2.62 |
% |
|
2.53 |
% |
|
2.53 |
% |
|
2.56 |
% |
|
2.73 |
% |
2.58 |
% |
|
2.91 |
% |
Net
interest margin - fully taxable equivalent (non-GAAP)
(3) |
|
2.63 |
|
|
2.54 |
|
|
2.54 |
|
|
2.57 |
|
|
2.74 |
|
2.59 |
|
|
2.93 |
|
Non-interest income to average assets |
|
1.13 |
|
|
1.68 |
|
|
1.44 |
|
|
1.58 |
|
|
1.55 |
|
1.40 |
|
|
1.41 |
|
Non-interest expense to average assets |
|
2.45 |
|
|
2.59 |
|
|
2.56 |
|
|
2.45 |
|
|
2.48 |
|
2.51 |
|
|
2.53 |
|
Net
overhead ratio (4) |
|
1.32 |
|
|
0.90 |
|
|
1.12 |
|
|
0.87 |
|
|
0.93 |
|
1.11 |
|
|
1.12 |
|
Return on
average assets |
|
0.92 |
|
|
1.38 |
|
|
0.92 |
|
|
0.99 |
|
|
0.21 |
|
1.15 |
|
|
0.43 |
|
Return on
average common equity |
|
10.24 |
|
|
15.80 |
|
|
10.30 |
|
|
10.66 |
|
|
2.17 |
|
12.97 |
|
|
4.48 |
|
Return on
average tangible common equity (non-GAAP) (3) |
|
12.62 |
|
|
19.49 |
|
|
12.95 |
|
|
13.43 |
|
|
2.95 |
|
15.99 |
|
|
5.81 |
|
Average
total assets |
|
$ |
45,946,751 |
|
|
$ |
44,988,733 |
|
|
$ |
43,810,005 |
|
|
$ |
42,962,844 |
|
|
$ |
42,042,729 |
|
$ |
45,470,389 |
|
|
$ |
39,334,109 |
|
Average
total shareholders’ equity |
|
|
4,256,778 |
|
|
|
4,164,890 |
|
|
|
4,050,286 |
|
|
|
4,034,902 |
|
|
|
3,908,846 |
|
4,211,088 |
|
|
3,809,508 |
|
Average
loans to average deposits ratio |
|
86.7 |
% |
|
87.1 |
% |
|
87.9 |
% |
|
89.6 |
% |
|
87.8 |
% |
86.9 |
% |
|
88.9 |
% |
Period-end loans to deposits ratio |
|
84.8 |
|
|
87.6 |
|
|
86.5 |
|
|
89.7 |
|
|
88.1 |
|
|
|
|
Common Share Data at end of period: |
|
|
|
Market
price per common share |
|
$ |
75.63 |
|
|
$ |
75.80 |
|
|
$ |
61.09 |
|
|
$ |
40.05 |
|
|
$ |
43.62 |
|
|
|
|
Book
value per common share |
|
68.81 |
|
|
67.34 |
|
|
65.24 |
|
|
63.57 |
|
|
62.14 |
|
|
|
|
Tangible
book value per common share (non-GAAP) (3) |
|
56.92 |
|
|
55.42 |
|
|
53.23 |
|
|
51.70 |
|
|
50.23 |
|
|
|
|
Common shares outstanding |
|
|
57,066,677 |
|
|
|
57,023,273 |
|
|
|
56,769,625 |
|
|
|
57,601,991 |
|
|
|
57,573,672 |
|
|
|
|
Other
Data at end of period: |
|
|
|
Tier 1
leverage ratio (5) |
|
8.2 |
% |
|
8.2 |
% |
|
8.1 |
% |
|
8.2 |
% |
|
8.1 |
% |
|
|
|
Risk-based capital ratios: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Tier 1
capital ratio (5) |
|
10.1 |
|
|
10.2 |
|
|
10.0 |
|
|
10.2 |
|
|
10.1 |
|
|
|
|
Common
equity tier 1 capital ratio(5) |
|
8.9 |
|
|
9.0 |
|
|
8.8 |
|
|
9.0 |
|
|
8.8 |
|
|
|
|
Total
capital ratio (5) |
|
12.3 |
|
|
12.6 |
|
|
12.6 |
|
|
12.9 |
|
|
12.8 |
|
|
|
|
Allowance
for credit losses (6) |
|
$ |
304,121 |
|
|
$ |
321,308 |
|
|
$ |
379,969 |
|
|
$ |
388,971 |
|
|
$ |
373,174 |
|
|
|
|
Allowance
for loan and unfunded lending-related commitment losses to total
loans |
|
0.92 |
% |
|
0.97 |
% |
|
1.18 |
% |
|
1.21 |
% |
|
1.19 |
% |
|
|
|
Number
of: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Bank subsidiaries |
|
15 |
|
|
15 |
|
|
15 |
|
|
15 |
|
|
15 |
|
|
|
|
Banking offices |
|
172 |
|
|
182 |
|
|
181 |
|
|
182 |
|
|
186 |
|
|
|
|
(1) Excludes mortgage loans
held-for-sale.
(2) Net revenue is 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 the allowance for loan losses, the
allowance for unfunded lending-related commitments and the
allowance for held-to-maturity securities losses.
WINTRUST FINANCIAL CORPORATION AND
SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CONDITION
|
|
(Unaudited) |
|
(Unaudited) |
|
|
|
(Unaudited) |
|
(Unaudited) |
|
|
Jun 30, |
|
Mar 31, |
|
Dec 31, |
|
Sep 30, |
|
Jun 30, |
(In
thousands) |
|
2021 |
|
2021 |
|
2020 |
|
2020 |
|
2020 |
Assets |
|
|
|
|
|
|
|
|
|
|
Cash and due from banks |
|
$ |
434,957 |
|
|
|
$ |
426,325 |
|
|
|
$ |
322,415 |
|
|
|
$ |
308,639 |
|
|
|
$ |
344,999 |
|
|
Federal
funds sold and securities purchased under resale agreements |
|
52 |
|
|
|
52 |
|
|
|
59 |
|
|
|
56 |
|
|
|
58 |
|
|
Interest-bearing deposits with banks |
|
4,707,415 |
|
|
|
3,348,794 |
|
|
|
4,802,527 |
|
|
|
3,825,823 |
|
|
|
4,015,072 |
|
|
Available-for-sale securities, at fair value |
|
2,188,608 |
|
|
|
2,430,749 |
|
|
|
3,055,839 |
|
|
|
2,946,459 |
|
|
|
3,194,961 |
|
|
Held-to-maturity securities, at amortized cost |
|
2,498,232 |
|
|
|
2,166,419 |
|
|
|
579,138 |
|
|
|
560,267 |
|
|
|
728,465 |
|
|
Trading
account securities |
|
2,667 |
|
|
|
951 |
|
|
|
671 |
|
|
|
1,720 |
|
|
|
890 |
|
|
Equity
securities with readily determinable fair value |
|
86,316 |
|
|
|
90,338 |
|
|
|
90,862 |
|
|
|
54,398 |
|
|
|
52,460 |
|
|
Federal
Home Loan Bank and Federal Reserve Bank stock |
|
136,625 |
|
|
|
135,881 |
|
|
|
135,588 |
|
|
|
135,568 |
|
|
|
135,571 |
|
|
Brokerage
customer receivables |
|
23,093 |
|
|
|
19,056 |
|
|
|
17,436 |
|
|
|
16,818 |
|
|
|
14,623 |
|
|
Mortgage
loans held-for-sale |
|
984,994 |
|
|
|
1,260,193 |
|
|
|
1,272,090 |
|
|
|
959,671 |
|
|
|
833,163 |
|
|
Loans,
net of unearned income |
|
32,911,187 |
|
|
|
33,171,233 |
|
|
|
32,079,073 |
|
|
|
32,135,555 |
|
|
|
31,402,903 |
|
|
Allowance
for loan losses |
|
(261,089 |
) |
|
|
(277,709 |
) |
|
|
(319,374 |
) |
|
|
(325,959 |
) |
|
|
(313,510 |
) |
|
Net loans |
|
32,650,098 |
|
|
|
32,893,524 |
|
|
|
31,759,699 |
|
|
|
31,809,596 |
|
|
|
31,089,393 |
|
|
Premises
and equipment, net |
|
752,375 |
|
|
|
760,522 |
|
|
|
768,808 |
|
|
|
774,288 |
|
|
|
769,909 |
|
|
Lease
investments, net |
|
219,023 |
|
|
|
238,984 |
|
|
|
242,434 |
|
|
|
230,373 |
|
|
|
237,040 |
|
|
Accrued
interest receivable and other assets |
|
1,185,811 |
|
|
|
1,230,362 |
|
|
|
1,351,455 |
|
|
|
1,424,728 |
|
|
|
1,437,832 |
|
|
Trade
date securities receivable |
|
189,851 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
Goodwill |
|
646,336 |
|
|
|
646,017 |
|
|
|
645,707 |
|
|
|
644,644 |
|
|
|
644,213 |
|
|
Other
intangible assets |
|
31,997 |
|
|
|
34,035 |
|
|
|
36,040 |
|
|
|
38,670 |
|
|
|
41,368 |
|
|
Total assets |
|
$ |
46,738,450 |
|
|
|
$ |
45,682,202 |
|
|
|
$ |
45,080,768 |
|
|
|
$ |
43,731,718 |
|
|
|
$ |
43,540,017 |
|
|
Liabilities and Shareholders’ Equity |
|
|
|
|
|
|
|
|
|
|
Deposits: |
|
|
|
|
|
|
|
|
|
|
Non-interest-bearing |
|
$ |
12,796,110 |
|
|
|
$ |
12,297,337 |
|
|
|
$ |
11,748,455 |
|
|
|
$ |
10,409,747 |
|
|
|
$ |
10,204,791 |
|
|
Interest-bearing |
|
26,008,506 |
|
|
|
25,575,315 |
|
|
|
25,344,196 |
|
|
|
25,434,675 |
|
|
|
25,447,083 |
|
|
Total deposits |
|
38,804,616 |
|
|
|
37,872,652 |
|
|
|
37,092,651 |
|
|
|
35,844,422 |
|
|
|
35,651,874 |
|
|
Federal
Home Loan Bank advances |
|
1,241,071 |
|
|
|
1,228,436 |
|
|
|
1,228,429 |
|
|
|
1,228,422 |
|
|
|
1,228,416 |
|
|
Other
borrowings |
|
518,493 |
|
|
|
516,877 |
|
|
|
518,928 |
|
|
|
507,395 |
|
|
|
508,535 |
|
|
Subordinated notes |
|
436,719 |
|
|
|
436,595 |
|
|
|
436,506 |
|
|
|
436,385 |
|
|
|
436,298 |
|
|
Junior
subordinated debentures |
|
253,566 |
|
|
|
253,566 |
|
|
|
253,566 |
|
|
|
253,566 |
|
|
|
253,566 |
|
|
Trade
date securities payable |
|
— |
|
|
|
995 |
|
|
|
200,907 |
|
|
|
— |
|
|
|
— |
|
|
Accrued
interest payable and other liabilities |
|
1,144,974 |
|
|
|
1,120,570 |
|
|
|
1,233,786 |
|
|
|
1,387,439 |
|
|
|
1,471,110 |
|
|
Total liabilities |
|
42,399,439 |
|
|
|
41,429,691 |
|
|
|
40,964,773 |
|
|
|
39,657,629 |
|
|
|
39,549,799 |
|
|
Shareholders’ Equity: |
|
|
|
|
|
|
|
|
|
|
Preferred stock |
|
412,500 |
|
|
|
412,500 |
|
|
|
412,500 |
|
|
|
412,500 |
|
|
|
412,500 |
|
|
Common stock |
|
58,770 |
|
|
|
58,727 |
|
|
|
58,473 |
|
|
|
58,323 |
|
|
|
58,294 |
|
|
Surplus |
|
1,669,002 |
|
|
|
1,663,008 |
|
|
|
1,649,990 |
|
|
|
1,647,049 |
|
|
|
1,643,864 |
|
|
Treasury stock |
|
(100,363 |
) |
|
|
(100,363 |
) |
|
|
(100,363 |
) |
|
|
(44,891 |
) |
|
|
(44,891 |
) |
|
Retained earnings |
|
2,288,969 |
|
|
|
2,208,535 |
|
|
|
2,080,013 |
|
|
|
2,001,949 |
|
|
|
1,921,048 |
|
|
Accumulated other comprehensive income (loss) |
|
10,133 |
|
|
|
10,104 |
|
|
|
15,382 |
|
|
|
(841 |
) |
|
|
(597 |
) |
|
Total shareholders’ equity |
|
4,339,011 |
|
|
|
4,252,511 |
|
|
|
4,115,995 |
|
|
|
4,074,089 |
|
|
|
3,990,218 |
|
|
Total liabilities and shareholders’ equity |
|
$ |
46,738,450 |
|
|
|
$ |
45,682,202 |
|
|
|
$ |
45,080,768 |
|
|
|
$ |
43,731,718 |
|
|
|
$ |
43,540,017 |
|
|
WINTRUST FINANCIAL CORPORATION AND
SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED)
|
Three Months Ended |
Six Months Ended |
(In
thousands, except per share data) |
Jun 30,
2021 |
|
Mar 31,
2021 |
|
Dec 31,
2020 |
|
Sep 30,
2020 |
|
Jun 30,
2020 |
Jun 30,
2021 |
|
Jun 30,
2020 |
Interest income |
|
|
|
|
|
|
|
|
|
|
|
|
Interest and fees on loans |
$ |
284,701 |
|
|
|
$ |
274,100 |
|
|
|
$ |
280,185 |
|
|
|
$ |
280,479 |
|
|
|
$ |
294,746 |
|
|
$ |
558,801 |
|
|
|
$ |
596,585 |
|
|
Mortgage loans held-for-sale |
8,183 |
|
|
|
9,036 |
|
|
|
6,357 |
|
|
|
5,791 |
|
|
|
4,764 |
|
|
17,219 |
|
|
|
7,929 |
|
|
Interest-bearing deposits with banks |
1,153 |
|
|
|
1,199 |
|
|
|
1,294 |
|
|
|
1,181 |
|
|
|
1,310 |
|
|
2,352 |
|
|
|
6,078 |
|
|
Federal funds sold and securities purchased under resale
agreements |
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
16 |
|
|
— |
|
|
|
102 |
|
|
Investment securities |
23,623 |
|
|
|
19,264 |
|
|
|
18,243 |
|
|
|
21,819 |
|
|
|
27,105 |
|
|
42,887 |
|
|
|
59,572 |
|
|
Trading account securities |
1 |
|
|
|
2 |
|
|
|
11 |
|
|
|
6 |
|
|
|
13 |
|
|
3 |
|
|
|
20 |
|
|
Federal Home Loan Bank and Federal Reserve Bank stock |
1,769 |
|
|
|
1,745 |
|
|
|
1,775 |
|
|
|
1,774 |
|
|
|
1,765 |
|
|
3,514 |
|
|
|
3,342 |
|
|
Brokerage customer receivables |
149 |
|
|
|
123 |
|
|
|
116 |
|
|
|
106 |
|
|
|
97 |
|
|
272 |
|
|
|
255 |
|
|
Total interest income |
319,579 |
|
|
|
305,469 |
|
|
|
307,981 |
|
|
|
311,156 |
|
|
|
329,816 |
|
|
625,048 |
|
|
|
673,883 |
|
|
Interest expense |
|
|
|
|
|
|
|
|
|
|
|
|
Interest on deposits |
24,298 |
|
|
|
27,944 |
|
|
|
32,602 |
|
|
|
39,084 |
|
|
|
50,057 |
|
|
52,242 |
|
|
|
117,492 |
|
|
Interest on Federal Home Loan Bank advances |
4,887 |
|
|
|
4,840 |
|
|
|
4,952 |
|
|
|
4,947 |
|
|
|
4,934 |
|
|
9,727 |
|
|
|
8,294 |
|
|
Interest on other borrowings |
2,568 |
|
|
|
2,609 |
|
|
|
2,779 |
|
|
|
3,012 |
|
|
|
3,436 |
|
|
5,177 |
|
|
|
6,982 |
|
|
Interest on subordinated notes |
5,512 |
|
|
|
5,477 |
|
|
|
5,509 |
|
|
|
5,474 |
|
|
|
5,506 |
|
|
10,989 |
|
|
|
10,978 |
|
|
Interest on junior subordinated debentures |
2,724 |
|
|
|
2,704 |
|
|
|
2,742 |
|
|
|
2,703 |
|
|
|
2,752 |
|
|
5,428 |
|
|
|
5,563 |
|
|
Total interest expense |
39,989 |
|
|
|
43,574 |
|
|
|
48,584 |
|
|
|
55,220 |
|
|
|
66,685 |
|
|
83,563 |
|
|
|
149,309 |
|
|
Net interest income |
279,590 |
|
|
|
261,895 |
|
|
|
259,397 |
|
|
|
255,936 |
|
|
|
263,131 |
|
|
541,485 |
|
|
|
524,574 |
|
|
Provision for credit losses |
(15,299 |
) |
|
|
(45,347 |
) |
|
|
1,180 |
|
|
|
25,026 |
|
|
|
135,053 |
|
|
(60,646 |
) |
|
|
188,014 |
|
|
Net interest income after provision for credit losses |
294,889 |
|
|
|
307,242 |
|
|
|
258,217 |
|
|
|
230,910 |
|
|
|
128,078 |
|
|
602,131 |
|
|
|
336,560 |
|
|
Non-interest income |
|
|
|
|
|
|
|
|
|
|
|
|
Wealth management |
30,690 |
|
|
|
29,309 |
|
|
|
26,802 |
|
|
|
24,957 |
|
|
|
22,636 |
|
|
59,999 |
|
|
|
48,577 |
|
|
Mortgage banking |
50,584 |
|
|
|
113,494 |
|
|
|
86,819 |
|
|
|
108,544 |
|
|
|
102,324 |
|
|
164,078 |
|
|
|
150,650 |
|
|
Service charges on deposit accounts |
13,249 |
|
|
|
12,036 |
|
|
|
11,841 |
|
|
|
11,497 |
|
|
|
10,420 |
|
|
25,285 |
|
|
|
21,685 |
|
|
Gains (losses) on investment securities, net |
1,285 |
|
|
|
1,154 |
|
|
|
1,214 |
|
|
|
411 |
|
|
|
808 |
|
|
2,439 |
|
|
|
(3,551 |
) |
|
Fees from covered call options |
1,388 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
1,388 |
|
|
|
2,292 |
|
|
Trading (losses) gains, net |
(438 |
) |
|
|
419 |
|
|
|
(102 |
) |
|
|
183 |
|
|
|
(634 |
) |
|
(19 |
) |
|
|
(1,085 |
) |
|
Operating lease income, net |
12,240 |
|
|
|
14,440 |
|
|
|
12,118 |
|
|
|
11,717 |
|
|
|
11,785 |
|
|
26,680 |
|
|
|
23,769 |
|
|
Other |
20,375 |
|
|
|
15,654 |
|
|
|
19,669 |
|
|
|
13,284 |
|
|
|
14,654 |
|
|
36,029 |
|
|
|
32,898 |
|
|
Total non-interest income |
129,373 |
|
|
|
186,506 |
|
|
|
158,361 |
|
|
|
170,593 |
|
|
|
161,993 |
|
|
315,879 |
|
|
|
275,235 |
|
|
Non-interest expense |
|
|
|
|
|
|
|
|
|
|
|
|
Salaries and employee benefits |
172,817 |
|
|
|
180,809 |
|
|
|
171,116 |
|
|
|
164,042 |
|
|
|
154,156 |
|
|
353,626 |
|
|
|
290,918 |
|
|
Equipment |
20,866 |
|
|
|
20,912 |
|
|
|
20,565 |
|
|
|
17,251 |
|
|
|
15,846 |
|
|
41,778 |
|
|
|
30,680 |
|
|
Operating lease equipment depreciation |
9,949 |
|
|
|
10,771 |
|
|
|
9,938 |
|
|
|
9,425 |
|
|
|
9,292 |
|
|
20,720 |
|
|
|
18,552 |
|
|
Occupancy, net |
17,687 |
|
|
|
19,996 |
|
|
|
19,687 |
|
|
|
15,830 |
|
|
|
16,893 |
|
|
37,683 |
|
|
|
34,440 |
|
|
Data processing |
6,920 |
|
|
|
6,048 |
|
|
|
5,728 |
|
|
|
5,689 |
|
|
|
10,406 |
|
|
12,968 |
|
|
|
18,779 |
|
|
Advertising and marketing |
11,305 |
|
|
|
8,546 |
|
|
|
9,850 |
|
|
|
7,880 |
|
|
|
7,704 |
|
|
19,851 |
|
|
|
18,566 |
|
|
Professional fees |
7,304 |
|
|
|
7,587 |
|
|
|
6,530 |
|
|
|
6,488 |
|
|
|
7,687 |
|
|
14,891 |
|
|
|
14,408 |
|
|
Amortization of other intangible assets |
2,039 |
|
|
|
2,007 |
|
|
|
2,634 |
|
|
|
2,701 |
|
|
|
2,820 |
|
|
4,046 |
|
|
|
5,683 |
|
|
FDIC insurance |
6,405 |
|
|
|
6,558 |
|
|
|
7,016 |
|
|
|
6,772 |
|
|
|
7,081 |
|
|
12,963 |
|
|
|
11,216 |
|
|
OREO expense, net |
769 |
|
|
|
(251 |
) |
|
|
(114 |
) |
|
|
(168 |
) |
|
|
237 |
|
|
518 |
|
|
|
(639 |
) |
|
Other |
24,051 |
|
|
|
23,906 |
|
|
|
28,917 |
|
|
|
28,309 |
|
|
|
27,246 |
|
|
47,957 |
|
|
|
51,406 |
|
|
Total non-interest expense |
280,112 |
|
|
|
286,889 |
|
|
|
281,867 |
|
|
|
264,219 |
|
|
|
259,368 |
|
|
567,001 |
|
|
|
494,009 |
|
|
Income before taxes |
144,150 |
|
|
|
206,859 |
|
|
|
134,711 |
|
|
|
137,284 |
|
|
|
30,703 |
|
|
351,009 |
|
|
|
117,786 |
|
|
Income tax expense |
39,041 |
|
|
|
53,711 |
|
|
|
33,507 |
|
|
|
29,969 |
|
|
|
9,044 |
|
|
92,752 |
|
|
|
33,315 |
|
|
Net income |
$ |
105,109 |
|
|
|
$ |
153,148 |
|
|
|
$ |
101,204 |
|
|
|
$ |
107,315 |
|
|
|
$ |
21,659 |
|
|
$ |
258,257 |
|
|
|
$ |
84,471 |
|
|
Preferred stock dividends |
6,991 |
|
|
|
6,991 |
|
|
|
6,991 |
|
|
|
10,286 |
|
|
|
2,050 |
|
|
13,982 |
|
|
|
4,100 |
|
|
Net income applicable to common shares |
$ |
98,118 |
|
|
|
$ |
146,157 |
|
|
|
$ |
94,213 |
|
|
|
$ |
97,029 |
|
|
|
$ |
19,609 |
|
|
$ |
244,275 |
|
|
|
$ |
80,371 |
|
|
Net income per common share - Basic |
$ |
1.72 |
|
|
|
$ |
2.57 |
|
|
|
$ |
1.64 |
|
|
|
$ |
1.68 |
|
|
|
$ |
0.34 |
|
|
$ |
4.29 |
|
|
|
$ |
1.40 |
|
|
Net income per common share - Diluted |
$ |
1.70 |
|
|
|
$ |
2.54 |
|
|
|
$ |
1.63 |
|
|
|
$ |
1.67 |
|
|
|
$ |
0.34 |
|
|
$ |
4.24 |
|
|
|
$ |
1.38 |
|
|
Cash dividends declared per common share |
$ |
0.31 |
|
|
|
$ |
0.31 |
|
|
|
$ |
0.28 |
|
|
|
$ |
0.28 |
|
|
|
$ |
0.28 |
|
|
$ |
0.62 |
|
|
|
$ |
0.56 |
|
|
Weighted average common shares outstanding |
|
57,049 |
|
|
|
|
56,904 |
|
|
|
|
57,309 |
|
|
|
|
57,597 |
|
|
|
|
57,567 |
|
|
|
56,977 |
|
|
|
|
57,593 |
|
|
Dilutive potential common shares |
726 |
|
|
|
681 |
|
|
|
588 |
|
|
|
449 |
|
|
|
414 |
|
|
691 |
|
|
|
481 |
|
|
Average common shares and dilutive common shares |
57,775 |
|
|
|
57,585 |
|
|
|
57,897 |
|
|
|
58,046 |
|
|
|
57,981 |
|
|
57,668 |
|
|
|
58,074 |
|
|
TABLE 1: LOAN PORTFOLIO MIX AND GROWTH
RATES
|
|
|
|
|
|
|
|
|
|
% Growth From (2) |
(Dollars in thousands) |
Jun 30,
2021 |
|
Mar 31,
2021 |
|
Dec 31,
2020 |
|
Sep 30,
2020 |
|
Jun 30,
2020 |
Dec 31,
2020 (1) |
|
Jun 30,
2020 |
Balance: |
|
|
|
|
|
|
|
|
|
|
|
|
Mortgage loans held-for-sale, excluding early buy-out exercised
loans guaranteed by U.S. Government Agencies |
$ |
633,006 |
|
|
$ |
890,749 |
|
|
$ |
927,307 |
|
|
$ |
862,924 |
|
|
$ |
814,667 |
|
(64 |
) |
% |
|
(22 |
) |
% |
Mortgage loans held-for-sale, early buy-out exercised loans
guaranteed by U.S. Government Agencies |
351,988 |
|
|
369,444 |
|
|
344,783 |
|
|
96,747 |
|
|
18,496 |
|
4 |
|
|
|
1803 |
|
|
Total mortgage loans held-for-sale |
$ |
984,994 |
|
|
$ |
1,260,193 |
|
|
$ |
1,272,090 |
|
|
$ |
959,671 |
|
|
$ |
833,163 |
|
(46 |
) |
% |
|
18 |
|
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
Core loans: |
|
|
|
|
|
|
|
|
|
|
|
|
Commercial |
|
|
|
|
|
|
|
|
|
|
|
|
Commercial and industrial |
$ |
4,650,607 |
|
|
$ |
4,630,795 |
|
|
$ |
4,675,594 |
|
|
$ |
4,555,920 |
|
|
$ |
4,292,032 |
|
(1 |
) |
% |
|
8 |
|
% |
Asset-based lending |
892,109 |
|
|
720,772 |
|
|
721,666 |
|
|
707,365 |
|
|
721,035 |
|
48 |
|
|
|
24 |
|
|
Municipal |
511,094 |
|
|
493,417 |
|
|
474,103 |
|
|
482,567 |
|
|
519,691 |
|
16 |
|
|
|
(2 |
) |
|
Leases |
1,357,036 |
|
|
1,290,778 |
|
|
1,288,374 |
|
|
1,215,239 |
|
|
1,179,233 |
|
11 |
|
|
|
15 |
|
|
Commercial real estate |
|
|
|
|
|
|
|
|
|
|
|
|
Residential construction |
55,735 |
|
|
72,058 |
|
|
89,389 |
|
|
101,187 |
|
|
131,639 |
|
(76 |
) |
|
|
(58 |
) |
|
Commercial construction |
1,090,447 |
|
|
1,040,631 |
|
|
1,041,729 |
|
|
1,005,708 |
|
|
992,872 |
|
9 |
|
|
|
10 |
|
|
Land |
239,067 |
|
|
240,635 |
|
|
240,684 |
|
|
226,254 |
|
|
215,537 |
|
(1 |
) |
|
|
11 |
|
|
Office |
1,098,386 |
|
|
1,131,472 |
|
|
1,136,844 |
|
|
1,163,790 |
|
|
1,124,643 |
|
(7 |
) |
|
|
(2 |
) |
|
Industrial |
1,263,614 |
|
|
1,152,522 |
|
|
1,129,433 |
|
|
1,117,702 |
|
|
1,062,218 |
|
24 |
|
|
|
19 |
|
|
Retail |
1,217,540 |
|
|
1,198,025 |
|
|
1,224,403 |
|
|
1,175,819 |
|
|
1,148,152 |
|
(1 |
) |
|
|
6 |
|
|
Multi-family |
1,805,118 |
|
|
1,739,521 |
|
|
1,649,801 |
|
|
1,599,651 |
|
|
1,497,834 |
|
19 |
|
|
|
21 |
|
|
Mixed use and other |
1,908,462 |
|
|
1,969,915 |
|
|
1,981,849 |
|
|
2,033,031 |
|
|
2,027,850 |
|
(7 |
) |
|
|
(6 |
) |
|
Home equity |
369,806 |
|
|
390,253 |
|
|
425,263 |
|
|
446,274 |
|
|
466,596 |
|
(26 |
) |
|
|
(21 |
) |
|
Residential real estate |
|
|
|
|
|
|
|
|
|
|
|
|
Residential real estate loans for investment |
1,485,952 |
|
|
1,376,465 |
|
|
1,214,744 |
|
|
1,143,908 |
|
|
1,186,768 |
|
45 |
|
|
|
25 |
|
|
Residential mortgage loans, early buy-out eligible loans guaranteed
by U.S. Government Agencies |
44,333 |
|
|
45,508 |
|
|
44,854 |
|
|
240,902 |
|
|
240,661 |
|
(2 |
) |
|
|
(82 |
) |
|
Total core loans |
$ |
17,989,306 |
|
|
$ |
17,492,767 |
|
|
$ |
17,338,730 |
|
|
$ |
17,215,317 |
|
|
$ |
16,806,761 |
|
8 |
|
% |
|
7 |
|
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
Niche loans: |
|
|
|
|
|
|
|
|
|
|
|
|
Commercial |
|
|
|
|
|
|
|
|
|
|
|
|
Franchise |
$ |
1,060,468 |
|
|
$ |
1,128,493 |
|
|
$ |
1,023,027 |
|
|
$ |
964,150 |
|
|
$ |
963,531 |
|
7 |
|
% |
|
10 |
|
% |
Mortgage warehouse lines of credit |
529,867 |
|
|
587,868 |
|
|
567,389 |
|
|
503,371 |
|
|
352,659 |
|
(13 |
) |
|
|
50 |
|
|
Community Advantage - homeowners association |
287,689 |
|
|
272,222 |
|
|
267,374 |
|
|
254,963 |
|
|
240,634 |
|
15 |
|
|
|
20 |
|
|
Insurance agency lending |
273,999 |
|
|
290,880 |
|
|
222,519 |
|
|
214,411 |
|
|
255,049 |
|
47 |
|
|
|
7 |
|
|
Premium Finance receivables |
|
|
|
|
|
|
|
|
|
|
|
|
U.S. commercial insurance |
3,805,504 |
|
|
3,342,730 |
|
|
3,438,087 |
|
|
3,494,155 |
|
|
3,439,987 |
|
22 |
|
|
|
11 |
|
|
Canada commercial insurance |
716,367 |
|
|
615,813 |
|
|
616,402 |
|
|
565,989 |
|
|
559,787 |
|
33 |
|
|
|
28 |
|
|
Life insurance |
6,359,556 |
|
|
6,111,495 |
|
|
5,857,436 |
|
|
5,488,832 |
|
|
5,400,802 |
|
17 |
|
|
|
18 |
|
|
Consumer and other |
9,024 |
|
|
35,983 |
|
|
32,188 |
|
|
55,354 |
|
|
48,325 |
|
(145 |
) |
|
|
(81 |
) |
|
Total niche loans |
$ |
13,042,474 |
|
|
$ |
12,385,484 |
|
|
$ |
12,024,422 |
|
|
$ |
11,541,225 |
|
|
$ |
11,260,774 |
|
17 |
|
% |
|
16 |
|
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial PPP loans: |
|
|
|
|
|
|
|
|
|
|
|
|
Originated in 2020 |
$ |
656,502 |
|
|
$ |
2,049,342 |
|
|
$ |
2,715,921 |
|
|
$ |
3,379,013 |
|
|
$ |
3,335,368 |
|
NM |
|
|
|
(80 |
) |
% |
Originated in 2021 |
1,222,905 |
|
|
1,243,640 |
|
|
— |
|
|
— |
|
|
— |
|
100 |
|
|
|
100 |
|
|
Total commercial PPP loans |
$ |
1,879,407 |
|
|
$ |
3,292,982 |
|
|
$ |
2,715,921 |
|
|
$ |
3,379,013 |
|
|
$ |
3,335,368 |
|
(62 |
) |
% |
|
(44 |
) |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
Total loans, net of unearned income |
$ |
32,911,187 |
|
|
$ |
33,171,233 |
|
|
$ |
32,079,073 |
|
|
$ |
32,135,555 |
|
|
$ |
31,402,903 |
|
5 |
|
% |
|
5 |
|
% |
(1) Annualized.
(2) NM - Not
meaningful.
TABLE 2: DEPOSIT PORTFOLIO MIX AND GROWTH
RATES
|
|
|
|
|
|
|
|
|
|
|
|
|
|
% Growth From |
(Dollars in thousands) |
Jun 30,
2021 |
|
|
Mar 31,
2021 |
|
|
Dec 31,
2020 |
|
|
Sep 30,
2020 |
|
|
Jun 30,
2020 |
Dec 31,
2020 (1) |
|
Jun 30,
2020 |
Balance: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-interest-bearing |
$ |
12,796,110 |
|
|
$ |
12,297,337 |
|
|
$ |
11,748,455 |
|
|
$ |
10,409,747 |
|
|
$
|
10,204,791 |
|
18 |
|
% |
|
25 |
|
% |
NOW and interest-bearing demand deposits |
3,625,538 |
|
|
3,562,312 |
|
|
3,349,021 |
|
|
3,294,071 |
|
|
|
3,440,348 |
|
17 |
|
|
|
5 |
|
|
Wealth management deposits (2) |
4,399,303 |
|
|
4,274,527 |
|
|
4,138,712 |
|
|
4,235,583 |
|
|
|
4,433,020 |
|
13 |
|
|
|
(1 |
) |
|
Money market |
9,843,390 |
|
|
9,236,434 |
|
|
9,348,806 |
|
|
9,423,653 |
|
|
|
9,288,976 |
|
11 |
|
|
|
6 |
|
|
Savings |
3,776,400 |
|
|
3,690,892 |
|
|
3,531,029 |
|
|
3,415,073 |
|
|
|
3,447,352 |
|
14 |
|
|
|
10 |
|
|
Time certificates of deposit |
4,363,875 |
|
|
4,811,150 |
|
|
4,976,628 |
|
|
5,066,295 |
|
|
|
4,837,387 |
|
(25 |
) |
|
|
(10 |
) |
|
Total deposits |
$ |
38,804,616 |
|
|
$ |
37,872,652 |
|
|
$ |
37,092,651 |
|
|
$ |
35,844,422 |
|
|
$
|
35,651,874 |
|
9 |
|
% |
|
9 |
|
% |
Mix: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-interest-bearing |
33 |
% |
|
32 |
% |
|
32 |
% |
|
29 |
% |
|
|
29
|
% |
|
|
|
NOW and interest-bearing demand deposits |
9 |
|
|
9 |
|
|
9 |
|
|
9 |
|
|
|
10 |
|
|
|
|
Wealth management deposits (2) |
11
|
|
|
11 |
|
|
11 |
|
|
12 |
|
|
|
12 |
|
|
|
|
Money market |
25
|
|
|
25 |
|
|
25 |
|
|
26 |
|
|
|
25 |
|
|
|
|
Savings |
10
|
|
|
10 |
|
|
10 |
|
|
10 |
|
|
|
10 |
|
|
|
|
Time certificates of deposit |
12
|
|
|
13 |
|
|
13 |
|
|
14 |
|
|
|
14 |
|
|
|
|
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 June 30, 2021
(Dollars in thousands) |
|
Total Time
Certificates of
Deposit |
|
Weighted-Average
Rate of Maturing
Time Certificates of Deposit
(1) |
1-3 months |
|
$ |
1,049,387 |
|
|
1.40 |
% |
4-6 months |
|
844,945 |
|
|
1.08 |
|
7-9 months |
|
726,341 |
|
|
0.60 |
|
10-12 months |
|
566,664 |
|
|
0.43 |
|
13-18 months |
|
601,524 |
|
|
0.59 |
|
19-24 months |
|
274,328 |
|
|
0.62 |
|
24+ months |
|
300,686 |
|
|
0.63 |
|
Total |
|
$ |
4,363,875 |
|
|
0.87 |
% |
(1) Weighted-average rate excludes the impact
of purchase accounting fair value adjustments.
TABLE 4: QUARTERLY AVERAGE BALANCES
|
|
Average Balance for three months ended, |
|
|
Jun
30, |
|
Mar 31, |
|
Dec 31, |
|
Sep 30, |
|
Jun 30, |
(In
thousands) |
|
2021 |
|
2021 |
|
2020 |
|
2020 |
|
2020 |
Interest-bearing deposits with banks and cash equivalents
(1) |
|
$ |
3,844,355 |
|
|
|
$ |
4,230,886 |
|
|
|
$ |
4,381,040 |
|
|
|
$ |
3,411,164 |
|
|
|
$ |
3,240,167 |
|
|
Investment securities (2) |
|
4,771,403 |
|
|
|
3,944,676 |
|
|
|
3,534,594 |
|
|
|
3,789,422 |
|
|
|
4,309,471 |
|
|
FHLB and FRB stock |
|
136,324 |
|
|
|
135,758 |
|
|
|
135,569 |
|
|
|
135,567 |
|
|
|
135,360 |
|
|
Liquidity management assets (3) |
|
8,752,082 |
|
|
|
8,311,320 |
|
|
|
8,051,203 |
|
|
|
7,336,153 |
|
|
|
7,684,998 |
|
|
Other earning assets (3)(4) |
|
23,354 |
|
|
|
20,370 |
|
|
|
18,716 |
|
|
|
16,656 |
|
|
|
16,917 |
|
|
Mortgage loans held-for-sale |
|
991,011 |
|
|
|
1,151,848 |
|
|
|
893,395 |
|
|
|
822,908 |
|
|
|
705,702 |
|
|
Loans, net of unearned income (3)(5) |
|
33,085,174 |
|
|
|
32,442,927 |
|
|
|
31,783,279 |
|
|
|
31,634,608 |
|
|
|
30,336,626 |
|
|
Total earning assets (3) |
|
42,851,621 |
|
|
|
41,926,465 |
|
|
|
40,746,593 |
|
|
|
39,810,325 |
|
|
|
38,744,243 |
|
|
Allowance for loan and investment security losses |
|
(285,686 |
) |
|
|
(327,080 |
) |
|
|
(336,139 |
) |
|
|
(321,732 |
) |
|
|
(222,485 |
) |
|
Cash and due from banks |
|
470,566 |
|
|
|
366,413 |
|
|
|
344,536 |
|
|
|
345,438 |
|
|
|
352,423 |
|
|
Other assets |
|
2,910,250 |
|
|
|
3,022,935 |
|
|
|
3,055,015 |
|
|
|
3,128,813 |
|
|
|
3,168,548 |
|
|
Total assets |
|
$ |
45,946,751 |
|
|
|
$ |
44,988,733 |
|
|
|
$ |
43,810,005 |
|
|
|
$ |
42,962,844 |
|
|
|
$ |
42,042,729 |
|
|
|
|
|
|
|
|
|
|
|
|
|
NOW and interest-bearing demand deposits |
|
$ |
3,626,424 |
|
|
|
$ |
3,493,451 |
|
|
|
$ |
3,320,527 |
|
|
|
$ |
3,435,089 |
|
|
|
$ |
3,323,124 |
|
|
Wealth management deposits |
|
4,369,998 |
|
|
|
4,156,398 |
|
|
|
4,066,948 |
|
|
|
4,239,300 |
|
|
|
4,380,996 |
|
|
Money market accounts |
|
9,547,167 |
|
|
|
9,335,920 |
|
|
|
9,435,344 |
|
|
|
9,332,668 |
|
|
|
8,727,966 |
|
|
Savings accounts |
|
3,728,271 |
|
|
|
3,587,566 |
|
|
|
3,413,388 |
|
|
|
3,419,586 |
|
|
|
3,394,480 |
|
|
Time deposits |
|
4,632,796 |
|
|
|
4,875,392 |
|
|
|
5,043,558 |
|
|
|
4,900,839 |
|
|
|
5,104,701 |
|
|
Interest-bearing deposits |
|
25,904,656 |
|
|
|
25,448,727 |
|
|
|
25,279,765 |
|
|
|
25,327,482 |
|
|
|
24,931,267 |
|
|
Federal Home Loan Bank advances |
|
1,235,142 |
|
|
|
1,228,433 |
|
|
|
1,228,425 |
|
|
|
1,228,421 |
|
|
|
1,214,375 |
|
|
Other borrowings |
|
525,924 |
|
|
|
518,188 |
|
|
|
510,725 |
|
|
|
512,787 |
|
|
|
493,350 |
|
|
Subordinated notes |
|
436,644 |
|
|
|
436,532 |
|
|
|
436,433 |
|
|
|
436,323 |
|
|
|
436,226 |
|
|
Junior subordinated debentures |
|
253,566 |
|
|
|
253,566 |
|
|
|
253,566 |
|
|
|
253,566 |
|
|
|
253,566 |
|
|
Total interest-bearing liabilities |
|
28,355,932 |
|
|
|
27,885,446 |
|
|
|
27,708,914 |
|
|
|
27,758,579 |
|
|
|
27,328,784 |
|
|
Non-interest-bearing deposits |
|
12,246,274 |
|
|
|
11,811,194 |
|
|
|
10,874,912 |
|
|
|
9,988,769 |
|
|
|
9,607,528 |
|
|
Other liabilities |
|
1,087,767 |
|
|
|
1,127,203 |
|
|
|
1,175,893 |
|
|
|
1,180,594 |
|
|
|
1,197,571 |
|
|
Equity |
|
4,256,778 |
|
|
|
4,164,890 |
|
|
|
4,050,286 |
|
|
|
4,034,902 |
|
|
|
3,908,846 |
|
|
Total liabilities and shareholders’ equity |
|
$ |
45,946,751 |
|
|
|
$ |
44,988,733 |
|
|
|
$ |
43,810,005 |
|
|
|
$ |
42,962,844 |
|
|
|
$ |
42,042,729 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Net free funds/contribution (6) |
|
$ |
14,495,689 |
|
|
|
$ |
14,041,019 |
|
|
|
$ |
13,037,679 |
|
|
|
$ |
12,051,746 |
|
|
|
$ |
11,415,459 |
|
|
(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) 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, |
|
|
Jun 30, |
|
Mar 31, |
|
Dec 31, |
|
Sep 30, |
|
Jun 30, |
(In
thousands) |
|
2021 |
|
2021 |
|
2020 |
|
2020 |
|
2020 |
Interest income: |
|
|
|
|
|
|
|
|
|
|
Interest-bearing deposits with banks and cash equivalents |
|
$ |
1,153 |
|
|
|
$ |
1,199 |
|
|
|
$ |
1,294 |
|
|
|
$ |
1,181 |
|
|
|
$ |
1,326 |
|
|
Investment securities |
|
24,117 |
|
|
|
19,764 |
|
|
|
18,773 |
|
|
|
22,365 |
|
|
|
27,643 |
|
|
FHLB and FRB stock |
|
1,769 |
|
|
|
1,745 |
|
|
|
1,775 |
|
|
|
1,774 |
|
|
|
1,765 |
|
|
Liquidity management assets (1) |
|
27,039 |
|
|
|
22,708 |
|
|
|
21,842 |
|
|
|
25,320 |
|
|
|
30,734 |
|
|
Other earning assets (1) |
|
150 |
|
|
|
125 |
|
|
|
130 |
|
|
|
113 |
|
|
|
113 |
|
|
Mortgage loans held-for-sale |
|
8,183 |
|
|
|
9,036 |
|
|
|
6,357 |
|
|
|
5,791 |
|
|
|
4,764 |
|
|
Loans, net of unearned income (1) |
|
285,116 |
|
|
|
274,484 |
|
|
|
280,509 |
|
|
|
280,960 |
|
|
|
295,322 |
|
|
Total interest income |
|
$ |
320,488 |
|
|
|
$ |
306,353 |
|
|
|
$ |
308,838 |
|
|
|
$ |
312,184 |
|
|
|
$ |
330,933 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest expense: |
|
|
|
|
|
|
|
|
|
|
NOW and interest-bearing demand deposits |
|
$ |
736 |
|
|
|
$ |
901 |
|
|
|
$ |
1,074 |
|
|
|
$ |
1,342 |
|
|
|
$ |
1,561 |
|
|
Wealth management deposits |
|
7,686 |
|
|
|
7,351 |
|
|
|
7,436 |
|
|
|
7,662 |
|
|
|
7,244 |
|
|
Money market accounts |
|
2,795 |
|
|
|
2,865 |
|
|
|
3,740 |
|
|
|
7,245 |
|
|
|
13,140 |
|
|
Savings accounts |
|
402 |
|
|
|
430 |
|
|
|
773 |
|
|
|
2,104 |
|
|
|
3,840 |
|
|
Time deposits |
|
12,679 |
|
|
|
16,397 |
|
|
|
19,579 |
|
|
|
20,731 |
|
|
|
24,272 |
|
|
Interest-bearing deposits |
|
24,298 |
|
|
|
27,944 |
|
|
|
32,602 |
|
|
|
39,084 |
|
|
|
50,057 |
|
|
Federal Home Loan Bank advances |
|
4,887 |
|
|
|
4,840 |
|
|
|
4,952 |
|
|
|
4,947 |
|
|
|
4,934 |
|
|
Other borrowings |
|
2,568 |
|
|
|
2,609 |
|
|
|
2,779 |
|
|
|
3,012 |
|
|
|
3,436 |
|
|
Subordinated notes |
|
5,512 |
|
|
|
5,477 |
|
|
|
5,509 |
|
|
|
5,474 |
|
|
|
5,506 |
|
|
Junior subordinated debentures |
|
2,724 |
|
|
|
2,704 |
|
|
|
2,742 |
|
|
|
2,703 |
|
|
|
2,752 |
|
|
Total interest expense |
|
$ |
39,989 |
|
|
|
$ |
43,574 |
|
|
|
$ |
48,584 |
|
|
|
$ |
55,220 |
|
|
|
$ |
66,685 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Less: Fully taxable-equivalent adjustment |
|
(909 |
) |
|
|
(884 |
) |
|
|
(857 |
) |
|
|
(1,028 |
) |
|
|
(1,117 |
) |
|
Net interest income (GAAP) (2) |
|
279,590 |
|
|
|
261,895 |
|
|
|
259,397 |
|
|
|
255,936 |
|
|
|
263,131 |
|
|
Fully taxable-equivalent adjustment |
|
909 |
|
|
|
884 |
|
|
|
857 |
|
|
|
1,028 |
|
|
|
1,117 |
|
|
Net interest income, fully taxable-equivalent (non-GAAP)
(2) |
|
$ |
280,499 |
|
|
|
$ |
262,779 |
|
|
|
$ |
260,254 |
|
|
|
$ |
256,964 |
|
|
|
$ |
264,248 |
|
|
(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, |
|
|
Jun 30,
2021 |
|
Mar 31,
2021 |
|
Dec 31,
2020 |
|
Sep 30,
2020 |
|
Jun 30,
2020 |
Yield earned on: |
|
|
|
|
|
|
|
|
|
|
Interest-bearing deposits with banks and cash equivalents |
|
0.12 |
|
% |
|
0.11 |
|
% |
|
0.12 |
|
% |
|
0.14 |
|
% |
|
0.16 |
|
% |
Investment securities |
|
2.03 |
|
|
|
2.03 |
|
|
|
2.11 |
|
|
|
2.35 |
|
|
|
2.58 |
|
|
FHLB and FRB stock |
|
5.20 |
|
|
|
5.21 |
|
|
|
5.21 |
|
|
|
5.21 |
|
|
|
5.24 |
|
|
Liquidity management assets |
|
1.24 |
|
|
|
1.11 |
|
|
|
1.08 |
|
|
|
1.37 |
|
|
|
1.61 |
|
|
Other earning assets |
|
2.59 |
|
|
|
2.50 |
|
|
|
2.79 |
|
|
|
2.71 |
|
|
|
2.71 |
|
|
Mortgage loans held-for-sale |
|
3.31 |
|
|
|
3.18 |
|
|
|
2.83 |
|
|
|
2.80 |
|
|
|
2.72 |
|
|
Loans, net of unearned income |
|
3.46 |
|
|
|
3.43 |
|
|
|
3.51 |
|
|
|
3.53 |
|
|
|
3.92 |
|
|
Total earning assets |
|
3.00 |
|
% |
|
2.96 |
|
% |
|
3.02 |
|
% |
|
3.12 |
|
% |
|
3.44 |
|
% |
|
|
|
|
|
|
|
|
|
|
|
Rate paid on: |
|
|
|
|
|
|
|
|
|
|
NOW and interest-bearing demand deposits |
|
0.08 |
|
% |
|
0.10 |
|
% |
|
0.13 |
|
% |
|
0.16 |
|
% |
|
0.19 |
|
% |
Wealth management deposits |
|
0.71 |
|
|
|
0.72 |
|
|
|
0.73 |
|
|
|
0.72 |
|
|
|
0.67 |
|
|
Money market accounts |
|
0.12 |
|
|
|
0.12 |
|
|
|
0.16 |
|
|
|
0.31 |
|
|
|
0.61 |
|
|
Savings accounts |
|
0.04 |
|
|
|
0.05 |
|
|
|
0.09 |
|
|
|
0.24 |
|
|
|
0.45 |
|
|
Time deposits |
|
1.10 |
|
|
|
1.36 |
|
|
|
1.54 |
|
|
|
1.68 |
|
|
|
1.91 |
|
|
Interest-bearing deposits |
|
0.38 |
|
|
|
0.45 |
|
|
|
0.51 |
|
|
|
0.61 |
|
|
|
0.81 |
|
|
Federal Home Loan Bank advances |
|
1.59 |
|
|
|
1.60 |
|
|
|
1.60 |
|
|
|
1.60 |
|
|
|
1.63 |
|
|
Other borrowings |
|
1.96 |
|
|
|
2.04 |
|
|
|
2.16 |
|
|
|
2.34 |
|
|
|
2.80 |
|
|
Subordinated notes |
|
5.05 |
|
|
|
5.02 |
|
|
|
5.05 |
|
|
|
5.02 |
|
|
|
5.05 |
|
|
Junior subordinated debentures |
|
4.25 |
|
|
|
4.27 |
|
|
|
4.23 |
|
|
|
4.17 |
|
|
|
4.29 |
|
|
Total interest-bearing liabilities |
|
0.56 |
|
% |
|
0.63 |
|
% |
|
0.70 |
|
% |
|
0.79 |
|
% |
|
0.98 |
|
% |
|
|
|
|
|
|
|
|
|
|
|
Interest rate spread (1)(2) |
|
2.44 |
|
% |
|
2.33 |
|
% |
|
2.32 |
|
% |
|
2.33 |
|
% |
|
2.46 |
|
% |
Less: Fully taxable-equivalent adjustment |
|
(0.01 |
) |
|
|
(0.01 |
) |
|
|
(0.01 |
) |
|
|
(0.01 |
) |
|
|
(0.01 |
) |
|
Net free funds/contribution (3) |
|
0.19 |
|
|
|
0.21 |
|
|
|
0.22 |
|
|
|
0.24 |
|
|
|
0.28 |
|
|
Net interest margin (GAAP) (2) |
|
2.62 |
|
% |
|
2.53 |
|
% |
|
2.53 |
|
% |
|
2.56 |
|
% |
|
2.73 |
|
% |
Fully taxable-equivalent adjustment |
|
0.01 |
|
|
|
0.01 |
|
|
|
0.01 |
|
|
|
0.01 |
|
|
|
0.01 |
|
|
Net interest margin, fully taxable-equivalent (non-GAAP)
(2) |
|
2.63 |
|
% |
|
2.54 |
|
% |
|
2.54 |
|
% |
|
2.57 |
|
% |
|
2.74 |
|
% |
(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 six months ended, |
Interest
for six months ended, |
Yield/Rate
for six months ended, |
(Dollars in thousands) |
Jun 30,
2021 |
|
Jun 30,
2020 |
Jun 30,
2021 |
|
Jun 30,
2020 |
Jun 30,
2021 |
|
Jun 30,
2020 |
Interest-bearing deposits with banks and cash equivalents
(1) |
$ |
4,036,553 |
|
|
|
$ |
2,329,488 |
|
|
$ |
2,352 |
|
|
|
$ |
6,180 |
|
|
0.12 |
|
% |
|
0.53 |
|
% |
Investment securities (2) |
4,360,323 |
|
|
|
4,545,090 |
|
|
43,881 |
|
|
|
60,661 |
|
|
2.03 |
|
|
|
2.68 |
|
|
FHLB and FRB stock |
136,043 |
|
|
|
125,094 |
|
|
3,514 |
|
|
|
3,342 |
|
|
5.21 |
|
|
|
5.37 |
|
|
Liquidity management assets (3)(4) |
$ |
8,532,919 |
|
|
|
$ |
6,999,672 |
|
|
$ |
49,747 |
|
|
|
$ |
70,183 |
|
|
1.18 |
|
% |
|
2.02 |
|
% |
Other earning assets (3)(4)(5) |
21,870 |
|
|
|
18,041 |
|
|
275 |
|
|
|
280 |
|
|
2.55 |
|
|
|
3.13 |
|
|
Mortgage loans held-for-sale |
1,070,985 |
|
|
|
554,482 |
|
|
17,219 |
|
|
|
7,929 |
|
|
3.24 |
|
|
|
2.88 |
|
|
Loans, net of unearned income (3)(4)(6) |
32,765,825 |
|
|
|
28,636,678 |
|
|
559,600 |
|
|
|
598,021 |
|
|
3.44 |
|
|
|
4.20 |
|
|
Total earning assets (4) |
$ |
42,391,599 |
|
|
|
$ |
36,208,873 |
|
|
$ |
626,841 |
|
|
|
$ |
676,413 |
|
|
2.98 |
|
% |
|
3.76 |
|
% |
Allowance for loan and investment security losses |
(306,268 |
) |
|
|
(199,388 |
) |
|
|
|
|
|
|
|
Cash and due from banks |
418,777 |
|
|
|
337,202 |
|
|
|
|
|
|
|
|
Other assets |
2,966,281 |
|
|
|
2,987,422 |
|
|
|
|
|
|
|
|
Total assets |
$ |
45,470,389 |
|
|
|
$ |
39,334,109 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NOW and interest-bearing demand deposits |
$ |
3,560,305 |
|
|
|
$ |
3,218,429 |
|
|
$ |
1,637 |
|
|
|
$ |
5,227 |
|
|
0.09 |
|
% |
|
0.33 |
|
% |
Wealth management deposits |
4,263,788 |
|
|
|
3,609,857 |
|
|
15,037 |
|
|
|
14,179 |
|
|
0.71 |
|
|
|
0.79 |
|
|
Money market accounts |
9,442,127 |
|
|
|
8,359,370 |
|
|
5,660 |
|
|
|
35,503 |
|
|
0.12 |
|
|
|
0.85 |
|
|
Savings accounts |
3,658,307 |
|
|
|
3,292,158 |
|
|
832 |
|
|
|
9,630 |
|
|
0.05 |
|
|
|
0.59 |
|
|
Time deposits |
4,753,424 |
|
|
|
5,315,554 |
|
|
29,076 |
|
|
|
52,953 |
|
|
1.23 |
|
|
|
2.00 |
|
|
Interest-bearing deposits |
$ |
25,677,951 |
|
|
|
$ |
23,795,368 |
|
|
$ |
52,242 |
|
|
|
$ |
117,492 |
|
|
0.41 |
|
% |
|
0.99 |
|
% |
Federal Home Loan Bank advances |
1,231,806 |
|
|
|
1,082,994 |
|
|
9,727 |
|
|
|
8,294 |
|
|
1.59 |
|
|
|
1.54 |
|
|
Other borrowings |
522,078 |
|
|
|
481,463 |
|
|
5,177 |
|
|
|
6,982 |
|
|
2.00 |
|
|
|
2.92 |
|
|
Subordinated notes |
436,588 |
|
|
|
436,173 |
|
|
10,989 |
|
|
|
10,978 |
|
|
5.03 |
|
|
|
5.03 |
|
|
Junior subordinated debentures |
253,566 |
|
|
|
253,566 |
|
|
5,428 |
|
|
|
5,563 |
|
|
4.26 |
|
|
|
4.34 |
|
|
Total interest-bearing liabilities |
$ |
28,121,989 |
|
|
|
$ |
26,049,564 |
|
|
$ |
83,563 |
|
|
|
$ |
149,309 |
|
|
0.60 |
|
% |
|
1.15 |
|
% |
Non-interest-bearing deposits |
12,029,936 |
|
|
|
8,421,353 |
|
|
|
|
|
|
|
|
Other liabilities |
1,107,376 |
|
|
|
1,053,684 |
|
|
|
|
|
|
|
|
Equity |
4,211,088 |
|
|
|
3,809,508 |
|
|
|
|
|
|
|
|
Total liabilities and shareholders’ equity |
$ |
45,470,389 |
|
|
|
$ |
39,334,109 |
|
|
|
|
|
|
|
|
Interest rate spread (4)(7) |
|
|
|
|
|
|
2.38 |
|
% |
|
2.61 |
|
% |
Less: Fully taxable-equivalent adjustment |
|
|
|
(1,793 |
) |
|
|
(2,530 |
) |
|
(0.01 |
) |
|
|
(0.02 |
) |
|
Net free funds/contribution (8) |
$ |
14,269,610 |
|
|
|
$ |
10,159,309 |
|
|
|
|
|
0.21 |
|
|
|
0.32 |
|
|
Net interest income/ margin (GAAP) (4) |
|
|
|
$ |
541,485 |
|
|
|
$ |
524,574 |
|
|
2.58 |
|
% |
|
2.91 |
|
% |
Fully taxable-equivalent adjustment |
|
|
|
1,793 |
|
|
|
|
2,530 |
|
|
0.01 |
|
|
|
0.02 |
|
|
Net interest income/ margin, fully taxable-equivalent (non-GAAP)
(4) |
|
|
|
$ |
543,278 |
|
|
|
$ |
527,104 |
|
|
2.59 |
|
% |
|
2.93 |
|
% |
(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) Interest rate
spread is the difference between the yield earned on earning assets
and the rate paid on interest-bearing
liabilities.
(8) 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 |
Jun 30, 2021 |
|
24.6 |
% |
|
11.7 |
% |
|
(6.9 |
) |
% |
Mar 31, 2021 |
|
22.0 |
|
|
10.2 |
|
|
(7.2 |
) |
|
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 |
) |
|
Ramp Scenario |
+200
Basis
Points |
|
+100
Basis
Points |
|
-100
Basis
Points |
Jun 30, 2021 |
11.4 |
% |
|
5.8 |
% |
|
(3.3 |
) |
% |
Mar 31, 2021 |
10.7 |
|
|
5.4 |
|
|
(3.6 |
) |
|
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 |
) |
|
TABLE 9: MATURITIES AND SENSITIVITIES TO
CHANGES IN INTEREST RATES
|
Loans repricing or maturity period |
|
|
As of June 30, 2021 |
One year or less |
|
From one to five years |
|
Over five years |
|
|
(In
thousands) |
|
|
|
Total |
Commercial |
|
|
|
|
|
|
|
Fixed rate |
$ |
1,018,304 |
|
|
$ |
1,378,744 |
|
|
$ |
796,227 |
|
|
$ |
3,193,275 |
|
Fixed Rate - PPP |
— |
|
|
1,879,407 |
|
|
— |
|
|
1,879,407 |
|
Variable rate |
6,365,838 |
|
|
3,694 |
|
|
62 |
|
|
6,369,594 |
|
Total commercial |
$ |
7,384,142 |
|
|
$ |
3,261,845 |
|
|
$ |
796,289 |
|
|
$ |
11,442,276 |
|
Commercial real estate |
|
|
|
|
|
|
|
Fixed rate |
509,777 |
|
|
2,127,633 |
|
|
437,944 |
|
|
3,075,354 |
|
Variable rate |
5,578,790 |
|
|
24,225 |
|
|
— |
|
|
5,603,015 |
|
Total commercial real estate |
$ |
6,088,567 |
|
|
$ |
2,151,858 |
|
|
$ |
437,944 |
|
|
$ |
8,678,369 |
|
Home equity |
|
|
|
|
|
|
|
Fixed rate |
14,613 |
|
|
7,095 |
|
|
47 |
|
|
21,755 |
|
Variable rate |
348,051 |
|
|
— |
|
|
— |
|
|
348,051 |
|
Total home equity |
$ |
362,664 |
|
|
$ |
7,095 |
|
|
$ |
47 |
|
|
$ |
369,806 |
|
Residential real estate |
|
|
|
|
|
|
|
Fixed rate |
20,305 |
|
|
10,381 |
|
|
777,239 |
|
|
807,925 |
|
Variable rate |
60,029 |
|
|
273,717 |
|
|
388,614 |
|
|
722,360 |
|
Total residential real estate |
$ |
80,334 |
|
|
$ |
284,098 |
|
|
$ |
1,165,853 |
|
|
$ |
1,530,285 |
|
Premium finance receivables - commercial |
|
|
|
|
|
|
|
Fixed rate |
4,398,271 |
|
|
123,600 |
|
|
— |
|
|
4,521,871 |
|
Variable rate |
— |
|
|
— |
|
|
— |
|
|
— |
|
Total premium finance receivables - commercial |
$ |
4,398,271 |
|
|
$ |
123,600 |
|
|
$ |
— |
|
|
$ |
4,521,871 |
|
Premium finance receivables - life insurance |
|
|
|
|
|
|
|
Fixed rate |
10,030 |
|
|
374,736 |
|
|
20,394 |
|
|
405,160 |
|
Variable rate |
5,954,396 |
|
|
— |
|
|
— |
|
|
5,954,396 |
|
Total premium finance receivables - life insurance |
$ |
5,964,426 |
|
|
$ |
374,736 |
|
|
$ |
20,394 |
|
|
$ |
6,359,556 |
|
Consumer and other |
|
|
|
|
|
|
|
Fixed rate |
2,269 |
|
|
1,748 |
|
|
388 |
|
|
4,405 |
|
Variable rate |
4,619 |
|
|
— |
|
|
— |
|
|
4,619 |
|
Total consumer and other |
$ |
6,888 |
|
|
$ |
1,748 |
|
|
$ |
388 |
|
|
$ |
9,024 |
|
|
|
|
|
|
|
|
|
Total per category |
|
|
|
|
|
|
|
Fixed rate |
5,973,569 |
|
|
4,023,937 |
|
|
2,032,239 |
|
|
12,029,745 |
|
Fixed rate - PPP |
— |
|
|
1,879,407 |
|
|
— |
|
|
1,879,407 |
|
Variable rate |
18,311,723 |
|
|
301,636 |
|
|
388,676 |
|
|
19,002,035 |
|
Total loans, net of unearned income |
$ |
24,285,292 |
|
|
$ |
6,204,980 |
|
|
$ |
2,420,915 |
|
|
$ |
32,911,187 |
|
|
|
|
|
|
|
|
|
Variable Rate Loan Pricing by Index: |
|
|
|
|
|
|
|
Prime |
|
|
|
|
|
|
$ |
2,573,945 |
|
One- month LIBOR |
|
|
|
|
|
|
9,384,417 |
|
Three- month LIBOR |
|
|
|
|
|
|
374,067 |
|
Twelve- month LIBOR |
|
|
|
|
|
|
6,359,426 |
|
Other |
|
|
|
|
|
|
310,180 |
|
Total variable rate |
|
|
|
|
|
|
$ |
19,002,035 |
|
Graph available at the following
link: http://ml.globenewswire.com/Resource/Download/b101ee1f-e849-457d-b671-498c22ffc552
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 $9.4
billion of variable rate loans tied to one-month LIBOR and $6.4
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 |
|
Second Quarter 2021 |
|
0 |
bps |
-1 |
bps |
-3 |
bps |
First
Quarter 2021 |
|
0 |
|
-3 |
|
-6 |
|
Fourth
Quarter 2020 |
|
0 |
|
-1 |
|
-2 |
|
Third
Quarter 2020 |
|
0 |
|
-1 |
|
-19 |
|
Second Quarter 2020 |
|
0 |
|
-83 |
|
-45 |
|
TABLE 10: ALLOWANCE FOR CREDIT LOSSES
|
|
Three Months Ended |
Six Months Ended |
|
|
Jun 30, |
|
Mar 31, |
|
Dec 31, |
|
Sep 30, |
|
Jun 30, |
Jun 30, |
|
Jun 30, |
(Dollars in thousands) |
|
2021 |
|
2021 |
|
2020 |
|
2020 |
|
2020 |
2021 |
|
2020 |
Allowance for credit losses at beginning of
period |
|
$ |
321,308 |
|
|
|
$ |
379,969 |
|
|
|
$ |
388,971 |
|
|
|
$ |
373,174 |
|
|
|
$ |
253,482 |
|
|
$ |
379,969 |
|
|
|
$ |
158,461 |
|
|
Cumulative effect adjustment from the adoption of ASU
2016-13 |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
— |
|
|
|
47,418 |
|
|
Provision for credit losses |
|
(15,299 |
) |
|
|
(45,347 |
) |
|
|
1,180 |
|
|
|
25,026 |
|
|
|
135,053 |
|
|
(60,646 |
) |
|
|
188,014 |
|
|
Other adjustments |
|
34 |
|
|
|
31 |
|
|
|
155 |
|
|
|
55 |
|
|
|
42 |
|
|
65 |
|
|
|
(31 |
) |
|
Charge-offs: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial |
|
3,237 |
|
|
|
11,781 |
|
|
|
5,184 |
|
|
|
5,270 |
|
|
|
5,686 |
|
|
15,018 |
|
|
|
7,839 |
|
|
Commercial real estate |
|
1,412 |
|
|
|
980 |
|
|
|
6,637 |
|
|
|
1,529 |
|
|
|
7,224 |
|
|
2,392 |
|
|
|
7,794 |
|
|
Home equity |
|
142 |
|
|
|
— |
|
|
|
683 |
|
|
|
138 |
|
|
|
239 |
|
|
142 |
|
|
|
1,240 |
|
|
Residential real estate |
|
3 |
|
|
|
2 |
|
|
|
114 |
|
|
|
83 |
|
|
|
293 |
|
|
5 |
|
|
|
694 |
|
|
Premium finance receivables |
|
2,077 |
|
|
|
3,239 |
|
|
|
4,214 |
|
|
|
4,640 |
|
|
|
3,434 |
|
|
5,316 |
|
|
|
6,618 |
|
|
Consumer and other |
|
104 |
|
|
|
114 |
|
|
|
198 |
|
|
|
103 |
|
|
|
99 |
|
|
218 |
|
|
|
227 |
|
|
Total charge-offs |
|
6,975 |
|
|
|
16,116 |
|
|
|
17,030 |
|
|
|
11,763 |
|
|
|
16,975 |
|
|
23,091 |
|
|
|
24,412 |
|
|
Recoveries: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial |
|
902 |
|
|
|
452 |
|
|
|
4,168 |
|
|
|
428 |
|
|
|
112 |
|
|
1,354 |
|
|
|
496 |
|
|
Commercial real estate |
|
514 |
|
|
|
200 |
|
|
|
904 |
|
|
|
175 |
|
|
|
493 |
|
|
714 |
|
|
|
756 |
|
|
Home equity |
|
328 |
|
|
|
101 |
|
|
|
77 |
|
|
|
111 |
|
|
|
46 |
|
|
429 |
|
|
|
340 |
|
|
Residential real estate |
|
36 |
|
|
|
204 |
|
|
|
69 |
|
|
|
25 |
|
|
|
30 |
|
|
240 |
|
|
|
90 |
|
|
Premium finance receivables |
|
3,239 |
|
|
|
1,782 |
|
|
|
1,445 |
|
|
|
1,720 |
|
|
|
833 |
|
|
5,021 |
|
|
|
1,943 |
|
|
Consumer and other |
|
34 |
|
|
|
32 |
|
|
|
30 |
|
|
|
20 |
|
|
|
58 |
|
|
66 |
|
|
|
99 |
|
|
Total recoveries |
|
5,053 |
|
|
|
2,771 |
|
|
|
6,693 |
|
|
|
2,479 |
|
|
|
1,572 |
|
|
7,824 |
|
|
|
3,724 |
|
|
Net charge-offs |
|
(1,922 |
) |
|
|
(13,345 |
) |
|
|
(10,337 |
) |
|
|
(9,284 |
) |
|
|
(15,403 |
) |
|
(15,267 |
) |
|
|
(20,688 |
) |
|
Allowance for credit losses at period end |
|
$ |
304,121 |
|
|
|
$ |
321,308 |
|
|
|
$ |
379,969 |
|
|
|
$ |
388,971 |
|
|
|
$ |
373,174 |
|
|
$ |
304,121 |
|
|
|
$ |
373,174 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Annualized net charge-offs (recoveries) by category as a
percentage of its own respective
category’s average: |
|
|
|
Commercial |
|
0.08 |
|
% |
|
0.37 |
|
% |
|
0.03 |
|
% |
|
0.16 |
|
% |
|
0.20 |
|
% |
0.22 |
|
% |
|
0.15 |
|
% |
Commercial real estate |
|
0.04 |
|
|
|
0.04 |
|
|
|
0.27 |
|
|
|
0.06 |
|
|
|
0.33 |
|
|
0.04 |
|
|
|
0.17 |
|
|
Home equity |
|
(0.20 |
) |
|
|
(0.10 |
) |
|
|
0.55 |
|
|
|
0.02 |
|
|
|
0.16 |
|
|
(0.15 |
) |
|
|
0.37 |
|
|
Residential real estate |
|
(0.01 |
) |
|
|
(0.06 |
) |
|
|
0.02 |
|
|
|
0.02 |
|
|
|
0.09 |
|
|
(0.03 |
) |
|
|
0.10 |
|
|
Premium finance receivables |
|
(0.04 |
) |
|
|
0.06 |
|
|
|
0.11 |
|
|
|
0.12 |
|
|
|
0.12 |
|
|
0.01 |
|
|
|
0.11 |
|
|
Consumer and other |
|
0.69 |
|
|
|
0.57 |
|
|
|
0.78 |
|
|
|
0.49 |
|
|
|
0.25 |
|
|
0.62 |
|
|
|
0.39 |
|
|
Total loans, net of unearned income |
|
0.02 |
|
% |
|
0.17 |
|
% |
|
0.13 |
|
% |
|
0.12 |
|
% |
|
0.20 |
|
% |
0.09 |
|
% |
|
0.15 |
|
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans at period end |
|
$ |
32,911,187 |
|
|
|
$ |
33,171,233 |
|
|
|
$ |
32,079,073 |
|
|
|
$ |
32,135,555 |
|
|
|
$ |
31,402,903 |
|
|
|
|
|
Allowance for loan losses as a percentage of loans at
period end |
|
0.79 |
|
% |
|
0.84 |
|
% |
|
1.00 |
|
% |
|
1.01 |
|
% |
|
1.00 |
|
% |
|
|
|
Allowance for loan and unfunded lending-related commitment
losses as a percentage of loans at period end |
|
0.92 |
|
|
|
0.97 |
|
|
|
1.18 |
|
|
|
1.21 |
|
|
|
1.19 |
|
|
|
|
|
Allowance for loan and unfunded lending-related commitment
losses as a percentage of loans at period end, excluding PPP
loans |
|
0.98 |
|
|
|
1.08 |
|
|
|
1.29 |
|
|
|
1.35 |
|
|
|
1.33 |
|
|
|
|
|
TABLE 11: ALLOWANCE AND PROVISION FOR CREDIT LOSSES BY
COMPONENT
|
|
Three Months Ended |
Six Months Ended |
|
|
Jun 30, |
|
Mar 31, |
|
Dec 31, |
|
Sep 30, |
|
Jun 30, |
Jun 30, |
|
Jun 30, |
(In
thousands) |
|
2021 |
|
2021 |
|
2020 |
|
2020 |
|
2020 |
2021 |
|
2020 |
Provision for loan losses |
|
$ |
(14,731 |
) |
|
|
$ |
(28,351 |
) |
|
|
$ |
3,597 |
|
|
|
$ |
21,678 |
|
|
|
$ |
112,822 |
|
|
$ |
(43,082 |
) |
|
|
$ |
163,218 |
|
|
Provision for unfunded lending-related commitments losses |
|
(558 |
) |
|
|
(17,035 |
) |
|
|
(2,413 |
) |
|
|
3,350 |
|
|
|
22,236 |
|
|
(17,593 |
) |
|
|
24,805 |
|
|
Provision for held-to-maturity securities losses |
|
(10 |
) |
|
|
39 |
|
|
|
(4 |
) |
|
|
(2 |
) |
|
|
(5 |
) |
|
29 |
|
|
|
(9 |
) |
|
Provision for credit losses |
|
$ |
(15,299 |
) |
|
|
$ |
(45,347 |
) |
|
|
$ |
1,180 |
|
|
|
$ |
25,026 |
|
|
|
$ |
135,053 |
|
|
$ |
(60,646 |
) |
|
|
$ |
188,014 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Allowance for loan losses |
|
$ |
261,089 |
|
|
|
$ |
277,709 |
|
|
|
$ |
319,374 |
|
|
|
$ |
325,959 |
|
|
|
$ |
313,510 |
|
|
|
|
|
Allowance for unfunded lending-related commitments losses |
|
42,942 |
|
|
|
43,500 |
|
|
|
60,536 |
|
|
|
62,949 |
|
|
|
59,599 |
|
|
|
|
|
Allowance for loan losses and unfunded lending-related commitments
losses |
|
304,031 |
|
|
|
321,209 |
|
|
|
379,910 |
|
|
|
388,908 |
|
|
|
373,109 |
|
|
|
|
|
Allowance for held-to-maturity securities losses |
|
90 |
|
|
|
99 |
|
|
|
59 |
|
|
|
63 |
|
|
|
65 |
|
|
|
|
|
Allowance for credit losses |
|
$ |
304,121 |
|
|
|
$ |
321,308 |
|
|
|
$ |
379,969 |
|
|
|
$ |
388,971 |
|
|
|
$ |
373,174 |
|
|
|
|
|
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 loan
portfolios as well as core and niche portfolios, as of
June 30, 2021, March 31, 2021, and December 31,
2020.
|
As of Jun 30, 2021 |
As of Mar 31, 2021 |
|
As of Dec 31, 2020 |
(Dollars in thousands) |
Recorded
Investment |
|
Calculated
Allowance |
|
% of its
category’s balance |
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 |
$ |
9,562,869 |
|
|
$ |
98,505 |
|
|
1.03 |
% |
$ |
9,415,225 |
|
|
$ |
95,637 |
|
|
1.02 |
% |
|
$ |
9,240,046 |
|
|
$ |
94,210 |
|
|
1.02 |
% |
Commercial PPP loans |
1,879,407 |
|
|
2 |
|
|
0.00 |
|
3,292,982 |
|
|
3 |
|
|
0.00 |
|
|
2,715,921 |
|
|
2 |
|
|
0.00 |
|
Commercial real estate: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Construction and development |
1,385,249 |
|
|
38,550 |
|
|
2.78 |
|
1,353,324 |
|
|
45,327 |
|
|
3.35 |
|
|
1,371,802 |
|
|
78,833 |
|
|
5.75 |
|
Non-construction |
7,293,120 |
|
|
119,972 |
|
|
1.65 |
|
7,191,455 |
|
|
136,465 |
|
|
1.90 |
|
|
7,122,330 |
|
|
164,770 |
|
|
2.31 |
|
Home
equity |
369,806 |
|
|
11,207 |
|
|
3.03 |
|
390,253 |
|
|
11,382 |
|
|
2.92 |
|
|
425,263 |
|
|
11,437 |
|
|
2.69 |
|
Residential real estate |
1,530,285 |
|
|
15,684 |
|
|
1.02 |
|
1,421,973 |
|
|
14,242 |
|
|
1.00 |
|
|
1,259,598 |
|
|
12,459 |
|
|
0.99 |
|
Premium finance receivables |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial insurance loans |
4,521,871 |
|
|
19,346 |
|
|
0.43 |
|
3,958,543 |
|
|
16,945 |
|
|
0.43 |
|
|
4,054,489 |
|
|
17,267 |
|
|
0.43 |
|
Life insurance loans |
6,359,556 |
|
|
553 |
|
|
0.01 |
|
6,111,495 |
|
|
532 |
|
|
0.01 |
|
|
5,857,436 |
|
|
510 |
|
|
0.01 |
|
Consumer
and other |
9,024 |
|
|
212 |
|
|
2.35 |
|
35,983 |
|
|
676 |
|
|
1.88 |
|
|
32,188 |
|
|
422 |
|
|
1.31 |
|
Total loans, net of unearned income |
$ |
32,911,187 |
|
|
$ |
304,031 |
|
|
0.92 |
% |
$ |
33,171,233 |
|
|
$ |
321,209 |
|
|
0.97 |
% |
|
$ |
32,079,073 |
|
|
$ |
379,910 |
|
|
1.18 |
% |
Total loans, net of unearned income, excluding PPP
loans |
$ |
31,031,780 |
|
|
$ |
304,029 |
|
|
0.98 |
% |
$ |
29,878,251 |
|
|
$ |
321,206 |
|
|
1.08 |
% |
|
$ |
29,363,152 |
|
|
$ |
379,908 |
|
|
1.29 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total core loans (1) |
$ |
17,989,306 |
|
|
$ |
267,999 |
|
|
1.49 |
% |
$ |
17,492,767 |
|
|
$ |
283,505 |
|
|
1.62 |
% |
|
$ |
17,338,730 |
|
|
$ |
347,111 |
|
|
2.00 |
% |
Total niche loans (1) |
13,042,474 |
|
|
36,030 |
|
|
0.28 |
|
12,385,484 |
|
|
37,701 |
|
|
0.30 |
|
|
12,024,422 |
|
|
32,797 |
|
|
0.27 |
|
Total PPP loans |
1,879,407 |
|
|
2 |
|
|
0.00 |
|
3,292,982 |
|
|
3 |
|
|
0.00 |
|
|
2,715,921 |
|
|
2 |
|
|
0.00 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) See Table 1 for additional detail on core
and niche loans.
TABLE 13: LOAN PORTFOLIO
AGING
(Dollars in thousands) |
|
Jun 30, 2021 |
|
Mar 31, 2021 |
|
Dec 31, 2020 |
|
Sep 30, 2020 |
|
Jun 30, 2020 |
Loan Balances: |
|
|
|
|
|
|
|
|
|
|
Commercial |
|
|
|
|
|
|
|
|
|
|
Nonaccrual |
|
$ |
23,232 |
|
|
$ |
22,459 |
|
|
$ |
21,743 |
|
|
$ |
42,036 |
|
|
$ |
42,882 |
|
90+ days and still accruing |
|
1,244 |
|
|
— |
|
|
307 |
|
|
— |
|
|
1,374 |
|
60-89 days past due |
|
5,204 |
|
|
13,292 |
|
|
6,900 |
|
|
2,168 |
|
|
8,952 |
|
30-59 days past due |
|
18,478 |
|
|
35,541 |
|
|
44,381 |
|
|
48,271 |
|
|
23,720 |
|
Current |
|
11,394,118 |
|
|
12,636,915 |
|
|
11,882,636 |
|
|
12,184,524 |
|
|
11,782,304 |
|
Total commercial |
|
$ |
11,442,276 |
|
|
$ |
12,708,207 |
|
|
$ |
11,955,967 |
|
|
$ |
12,276,999 |
|
|
$ |
11,859,232 |
|
Commercial real estate |
|
|
|
|
|
|
|
|
|
|
Nonaccrual |
|
$ |
26,035 |
|
|
$ |
34,380 |
|
|
$ |
46,107 |
|
|
$ |
68,815 |
|
|
$ |
64,557 |
|
90+ days and still accruing |
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
60-89 days past due |
|
4,382 |
|
|
8,156 |
|
|
5,178 |
|
|
8,299 |
|
|
26,480 |
|
30-59 days past due |
|
19,698 |
|
|
70,168 |
|
|
32,116 |
|
|
53,462 |
|
|
75,528 |
|
Current |
|
8,628,254 |
|
|
8,432,075 |
|
|
8,410,731 |
|
|
8,292,566 |
|
|
8,034,180 |
|
Total commercial real estate |
|
$ |
8,678,369 |
|
|
$ |
8,544,779 |
|
|
$ |
8,494,132 |
|
|
8,423,142 |
|
|
$ |
8,200,745 |
|
Home equity |
|
|
|
|
|
|
|
|
|
|
Nonaccrual |
|
$ |
3,478 |
|
|
$ |
5,536 |
|
|
$ |
6,529 |
|
|
$ |
6,329 |
|
|
$ |
7,261 |
|
90+ days and still accruing |
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
60-89 days past due |
|
301 |
|
|
492 |
|
|
47 |
|
|
70 |
|
|
— |
|
30-59 days past due |
|
777 |
|
|
780 |
|
|
637 |
|
|
1,148 |
|
|
1,296 |
|
Current |
|
365,250 |
|
|
383,445 |
|
|
418,050 |
|
|
438,727 |
|
|
458,039 |
|
Total home equity |
|
$ |
369,806 |
|
|
$ |
390,253 |
|
|
$ |
425,263 |
|
|
$ |
446,274 |
|
|
$ |
466,596 |
|
Residential real estate |
|
|
|
|
|
|
|
|
|
|
Nonaccrual |
|
$ |
23,050 |
|
|
$ |
21,553 |
|
|
$ |
26,071 |
|
|
$ |
22,069 |
|
|
$ |
19,529 |
|
90+ days and still accruing |
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
60-89 days past due |
|
1,584 |
|
|
944 |
|
|
1,635 |
|
|
814 |
|
|
1,506 |
|
30-59 days past due |
|
2,139 |
|
|
13,768 |
|
|
12,584 |
|
|
2,443 |
|
|
4,400 |
|
Current |
|
1,503,512 |
|
|
1,385,708 |
|
|
1,219,308 |
|
|
1,359,484 |
|
|
1,401,994 |
|
Total residential real estate |
|
$ |
1,530,285 |
|
|
$ |
1,421,973 |
|
|
$ |
1,259,598 |
|
|
$ |
1,384,810 |
|
|
$ |
1,427,429 |
|
Premium finance receivables |
|
|
|
|
|
|
|
|
|
|
Nonaccrual |
|
$ |
6,418 |
|
|
$ |
9,690 |
|
|
$ |
13,264 |
|
|
$ |
21,080 |
|
|
$ |
16,460 |
|
90+ days and still accruing |
|
3,570 |
|
|
4,783 |
|
|
12,792 |
|
|
12,177 |
|
|
35,638 |
|
60-89 days past due |
|
7,759 |
|
|
5,113 |
|
|
27,801 |
|
|
38,286 |
|
|
42,353 |
|
30-59 days past due |
|
32,758 |
|
|
31,373 |
|
|
49,274 |
|
|
80,732 |
|
|
61,160 |
|
Current |
|
10,830,922 |
|
|
10,019,079 |
|
|
9,808,794 |
|
|
9,396,701 |
|
|
9,244,965 |
|
Total premium finance receivables |
|
$ |
10,881,427 |
|
|
$ |
10,070,038 |
|
|
$ |
9,911,925 |
|
|
$ |
9,548,976 |
|
|
$ |
9,400,576 |
|
Consumer and other |
|
|
|
|
|
|
|
|
|
|
Nonaccrual |
|
$ |
485 |
|
|
$ |
497 |
|
|
$ |
436 |
|
|
$ |
422 |
|
|
$ |
427 |
|
90+ days and still accruing |
|
178 |
|
|
161 |
|
|
264 |
|
|
175 |
|
|
156 |
|
60-89 days past due |
|
22 |
|
|
8 |
|
|
24 |
|
|
273 |
|
|
4 |
|
30-59 days past due |
|
75 |
|
|
74 |
|
|
136 |
|
|
493 |
|
|
281 |
|
Current |
|
8,264 |
|
|
35,243 |
|
|
31,328 |
|
|
53,991 |
|
|
47,457 |
|
Total consumer and other |
|
$ |
9,024 |
|
|
$ |
35,983 |
|
|
$ |
32,188 |
|
|
$ |
55,354 |
|
|
$ |
48,325 |
|
Total loans, net of unearned income |
|
|
|
|
|
|
|
|
|
|
Nonaccrual |
|
$ |
82,698 |
|
|
$ |
94,115 |
|
|
$ |
114,150 |
|
|
$ |
160,751 |
|
|
$ |
151,116 |
|
90+ days and still accruing |
|
4,992 |
|
|
4,944 |
|
|
13,363 |
|
|
12,352 |
|
|
37,168 |
|
60-89 days past due |
|
19,252 |
|
|
28,005 |
|
|
41,585 |
|
|
49,910 |
|
|
79,295 |
|
30-59 days past due |
|
73,925 |
|
|
151,704 |
|
|
139,128 |
|
|
186,549 |
|
|
166,385 |
|
Current |
|
32,730,320 |
|
|
32,892,465 |
|
|
31,770,847 |
|
|
31,725,993 |
|
|
30,968,939 |
|
Total loans, net of unearned income |
|
$ |
32,911,187 |
|
|
$ |
33,171,233 |
|
|
$ |
32,079,073 |
|
|
$ |
32,135,555 |
|
|
$ |
31,402,903 |
|
TABLE 14: NON-PERFORMING ASSETS AND TROUBLED DEBT
RESTRUCTURINGS ("TDRs")
|
Jun 30, |
|
Mar 31, |
|
Dec 31, |
|
Sep 30, |
|
Jun 30, |
(Dollars in thousands) |
2021 |
|
2021 |
|
2020 |
|
2020 |
|
2020 |
Loans past due greater than 90 days and still accruing
(1): |
|
|
|
|
|
|
|
|
|
Commercial |
$ |
1,244 |
|
|
$ |
— |
|
|
$ |
307 |
|
|
$ |
— |
|
|
$ |
1,374 |
|
Commercial real estate |
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
Home
equity |
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
Residential real estate |
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
Premium
finance receivables |
3,570 |
|
|
4,783 |
|
|
12,792 |
|
|
12,177 |
|
|
35,638 |
|
Consumer
and other |
178 |
|
|
161 |
|
|
264 |
|
|
175 |
|
|
156 |
|
Total loans past due greater than 90 days and still accruing |
4,992 |
|
|
4,944 |
|
|
13,363 |
|
|
12,352 |
|
|
37,168 |
|
Non-accrual loans: |
|
|
|
|
|
|
|
|
|
Commercial |
23,232 |
|
|
22,459 |
|
|
21,743 |
|
|
42,036 |
|
|
42,882 |
|
Commercial real estate |
26,035 |
|
|
34,380 |
|
|
46,107 |
|
|
68,815 |
|
|
64,557 |
|
Home
equity |
3,478 |
|
|
5,536 |
|
|
6,529 |
|
|
6,329 |
|
|
7,261 |
|
Residential real estate |
23,050 |
|
|
21,553 |
|
|
26,071 |
|
|
22,069 |
|
|
19,529 |
|
Premium
finance receivables |
6,418 |
|
|
9,690 |
|
|
13,264 |
|
|
21,080 |
|
|
16,460 |
|
Consumer
and other |
485 |
|
|
497 |
|
|
436 |
|
|
422 |
|
|
427 |
|
Total non-accrual loans |
82,698 |
|
|
94,115 |
|
|
114,150 |
|
|
160,751 |
|
|
151,116 |
|
Total non-performing loans: |
|
|
|
|
|
|
|
|
|
Commercial |
24,476 |
|
|
22,459 |
|
|
22,050 |
|
|
42,036 |
|
|
44,256 |
|
Commercial real estate |
26,035 |
|
|
34,380 |
|
|
46,107 |
|
|
68,815 |
|
|
64,557 |
|
Home
equity |
3,478 |
|
|
5,536 |
|
|
6,529 |
|
|
6,329 |
|
|
7,261 |
|
Residential real estate |
23,050 |
|
|
21,553 |
|
|
26,071 |
|
|
22,069 |
|
|
19,529 |
|
Premium
finance receivables |
9,988 |
|
|
14,473 |
|
|
26,056 |
|
|
33,257 |
|
|
52,098 |
|
Consumer
and other |
663 |
|
|
658 |
|
|
700 |
|
|
597 |
|
|
583 |
|
Total non-performing loans |
$ |
87,690 |
|
|
$ |
99,059 |
|
|
$ |
127,513 |
|
|
$ |
173,103 |
|
|
$ |
188,284 |
|
Other
real estate owned |
10,510 |
|
|
8,679 |
|
|
9,711 |
|
|
2,891 |
|
|
2,409 |
|
Other
real estate owned - from acquisitions |
5,062 |
|
|
7,134 |
|
|
6,847 |
|
|
6,326 |
|
|
7,788 |
|
Other
repossessed assets |
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
Total non-performing assets |
$ |
103,262 |
|
|
$ |
114,872 |
|
|
$ |
144,071 |
|
|
$ |
182,320 |
|
|
$ |
198,481 |
|
Accruing
TDRs not included within non-performing assets |
$ |
44,019 |
|
|
$ |
46,151 |
|
|
$ |
47,023 |
|
|
$ |
46,410 |
|
|
$ |
48,609 |
|
Total non-performing loans by category as a percent of its
own respective category’s period-end balance: |
|
|
|
|
|
|
|
|
|
Commercial |
0.21 |
% |
|
0.18 |
% |
|
0.18 |
% |
|
0.34 |
% |
|
0.37 |
% |
Commercial real estate |
0.30 |
|
|
0.40 |
|
|
0.54 |
|
|
0.82 |
|
|
0.79 |
|
Home
equity |
0.94 |
|
|
1.42 |
|
|
1.54 |
|
|
1.42 |
|
|
1.56 |
|
Residential real estate |
1.51 |
|
|
1.52 |
|
|
2.07 |
|
|
1.59 |
|
|
1.37 |
|
Premium
finance receivables |
0.09 |
|
|
0.14 |
|
|
0.26 |
|
|
0.35 |
|
|
0.55 |
|
Consumer
and other |
7.35 |
|
|
1.83 |
|
|
2.17 |
|
|
1.08 |
|
|
1.21 |
|
Total loans, net of unearned income |
0.27 |
% |
|
0.30 |
% |
|
0.40 |
% |
|
0.54 |
% |
|
0.60 |
% |
Total non-performing assets as a percentage of total
assets |
0.22 |
% |
|
0.25 |
% |
|
0.32 |
% |
|
0.42 |
% |
|
0.46 |
% |
Allowance for credit losses as a percentage of non-accrual
loans |
367.64 |
% |
|
341.29 |
% |
|
332.82 |
% |
|
241.93 |
% |
|
246.90 |
% |
|
|
|
|
|
|
|
|
|
|
(1) As of June 30, 2021,
$320,000 of TDRs were past due greater than 90 days and still
accruing interest compared to none in March 31, 2021,
December 31, 2020, September 30, 2020, and June 30,
2020.
Non-performing Loans Rollforward
|
Three Months Ended |
Six Months Ended |
|
Jun 30, |
|
Mar 31, |
|
Dec 31, |
|
Sep 30, |
|
Jun 30, |
Jun 30, |
|
Jun 30, |
(In
thousands) |
2021 |
|
2021 |
|
2020 |
|
2020 |
|
2020 |
2021 |
|
2020 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance at beginning of period |
$ |
99,059 |
|
|
|
$ |
127,513 |
|
|
|
$ |
173,103 |
|
|
|
$ |
188,284 |
|
|
|
$ |
179,360 |
|
|
$ |
127,513 |
|
|
|
$ |
117,588 |
|
|
Additions from becoming non-performing in the respective
period |
12,762 |
|
|
|
9,894 |
|
|
|
13,224 |
|
|
|
19,771 |
|
|
|
20,803 |
|
|
22,656 |
|
|
|
52,998 |
|
|
Additions from the adoption of ASU 2016-13 |
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
— |
|
|
|
37,285 |
|
|
Return to performing status |
— |
|
|
|
(654 |
) |
|
|
(1,000 |
) |
|
|
(6,202 |
) |
|
|
(2,566 |
) |
|
(654 |
) |
|
|
(3,052 |
) |
|
Payments received |
(12,312 |
) |
|
|
(22,731 |
) |
|
|
(30,146 |
) |
|
|
(3,733 |
) |
|
|
(11,201 |
) |
|
(35,043 |
) |
|
|
(19,150 |
) |
|
Transfer to OREO and other repossessed assets |
(3,660 |
) |
|
|
(1,372 |
) |
|
|
(12,662 |
) |
|
|
(598 |
) |
|
|
— |
|
|
(5,032 |
) |
|
|
(1,297 |
) |
|
Charge-offs, net |
(4,684 |
) |
|
|
(2,952 |
) |
|
|
(7,817 |
) |
|
|
(6,583 |
) |
|
|
(12,884 |
) |
|
(7,636 |
) |
|
|
(15,435 |
) |
|
Net change for niche loans (1) |
(3,475 |
) |
|
|
(10,639 |
) |
|
|
(7,189 |
) |
|
|
(17,836 |
) |
|
|
14,772 |
|
|
(14,114 |
) |
|
|
19,347 |
|
|
Balance at end of period |
$ |
87,690 |
|
|
|
$ |
99,059 |
|
|
|
$ |
127,513 |
|
|
|
$ |
173,103 |
|
|
|
$ |
188,284 |
|
|
$ |
87,690 |
|
|
|
$ |
188,284 |
|
|
(1) This includes activity
for premium finance receivables and indirect consumer
loans.
TDRs
|
Jun 30, |
|
Mar 31, |
|
Dec 31, |
|
Sep 30, |
|
Jun 30, |
(In
thousands) |
2021 |
|
2021 |
|
2020 |
|
2020 |
|
2020 |
Accruing TDRs: |
|
|
|
|
|
|
|
|
|
Commercial |
$ |
6,911 |
|
|
$ |
7,536 |
|
|
$ |
7,699 |
|
|
$ |
7,863 |
|
|
$ |
5,338 |
|
Commercial real estate |
9,659 |
|
|
9,478 |
|
|
10,549 |
|
|
10,846 |
|
|
19,106 |
|
Residential real estate and other |
27,449 |
|
|
29,137 |
|
|
28,775 |
|
|
27,701 |
|
|
24,165 |
|
Total accrual |
$ |
44,019 |
|
|
$ |
46,151 |
|
|
$ |
47,023 |
|
|
$ |
46,410 |
|
|
$ |
48,609 |
|
Non-accrual TDRs: (1) |
|
|
|
|
|
|
|
|
|
Commercial |
$ |
4,104 |
|
|
$ |
5,583 |
|
|
$ |
10,491 |
|
|
$ |
13,132 |
|
|
$ |
20,788 |
|
Commercial real estate |
3,434 |
|
|
1,309 |
|
|
6,177 |
|
|
13,601 |
|
|
8,545 |
|
Residential real estate and other |
4,190 |
|
|
3,540 |
|
|
4,501 |
|
|
5,392 |
|
|
5,606 |
|
Total non-accrual |
$ |
11,728 |
|
|
$ |
10,432 |
|
|
$ |
21,169 |
|
|
$ |
32,125 |
|
|
$ |
34,939 |
|
Total TDRs: |
|
|
|
|
|
|
|
|
|
Commercial |
$ |
11,015 |
|
|
$ |
13,119 |
|
|
$ |
18,190 |
|
|
$ |
20,995 |
|
|
$ |
26,126 |
|
Commercial real estate |
13,093 |
|
|
10,787 |
|
|
16,726 |
|
|
24,447 |
|
|
27,651 |
|
Residential real estate and other |
31,639 |
|
|
32,677 |
|
|
33,276 |
|
|
33,093 |
|
|
29,771 |
|
Total TDRs |
$ |
55,747 |
|
|
$ |
56,583 |
|
|
$ |
68,192 |
|
|
$ |
78,535 |
|
|
$ |
83,548 |
|
(1) Included in total
non-performing loans.
Other Real Estate Owned
|
Three Months Ended |
|
Jun 30, |
|
Mar 31, |
|
Dec 31, |
|
Sep 30, |
|
Jun 30, |
(In
thousands) |
2021 |
|
2021 |
|
2020 |
|
2020 |
|
2020 |
Balance at beginning of period |
$ |
15,813 |
|
|
|
$ |
16,558 |
|
|
|
$ |
9,217 |
|
|
|
$ |
10,197 |
|
|
|
$ |
11,026 |
|
|
Disposals/resolved |
(3,152 |
) |
|
|
(2,162 |
) |
|
|
(3,839 |
) |
|
|
(1,532 |
) |
|
|
(612 |
) |
|
Transfers in at fair value, less costs to sell |
3,660 |
|
|
|
1,587 |
|
|
|
11,508 |
|
|
|
777 |
|
|
|
— |
|
|
Additions from acquisition |
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
Fair value adjustments |
(749 |
) |
|
|
(170 |
) |
|
|
(328 |
) |
|
|
(225 |
) |
|
|
(217 |
) |
|
Balance at end of period |
$ |
15,572 |
|
|
|
$ |
15,813 |
|
|
|
$ |
16,558 |
|
|
|
$ |
9,217 |
|
|
|
$ |
10,197 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Period End |
|
Jun 30, |
|
Mar 31, |
|
Dec 31, |
|
Sep 30, |
|
Jun 30, |
Balance by Property Type: |
2021 |
|
2021 |
|
2020 |
|
2020 |
|
2020 |
Residential real estate |
$ |
1,952 |
|
|
|
$ |
2,713 |
|
|
|
$ |
2,324 |
|
|
|
$ |
1,839 |
|
|
|
$ |
1,382 |
|
|
Residential real estate development |
1,030 |
|
|
|
1,287 |
|
|
|
1,691 |
|
|
|
— |
|
|
|
— |
|
|
Commercial real estate |
12,590 |
|
|
|
11,813 |
|
|
|
12,543 |
|
|
|
7,378 |
|
|
|
8,815 |
|
|
Total |
$ |
15,572 |
|
|
|
$ |
15,813 |
|
|
|
$ |
16,558 |
|
|
|
$ |
9,217 |
|
|
|
$ |
10,197 |
|
|
TABLE 15: NON-INTEREST INCOME
|
Three Months Ended |
|
Q2 2021 compared to
Q1 2021 |
|
Q2 2021 compared to
Q2 2020 |
|
Jun 30, |
|
Mar 31, |
|
Dec 31, |
|
Sep 30, |
|
Jun 30, |
|
|
(Dollars in thousands) |
2021 |
|
2021 |
|
2020 |
|
2020 |
|
2020 |
|
$ Change |
|
% Change |
|
$ Change |
|
% Change |
Brokerage |
$ |
5,148 |
|
|
|
$ |
5,040 |
|
|
|
$ |
4,740 |
|
|
|
$ |
4,563 |
|
|
|
$ |
4,147 |
|
|
|
$ |
108 |
|
|
|
2 |
|
% |
|
$ |
1,001 |
|
|
|
24 |
|
% |
Trust and asset management |
25,542 |
|
|
|
24,269 |
|
|
|
22,062 |
|
|
|
20,394 |
|
|
|
18,489 |
|
|
|
1,273 |
|
|
|
5 |
|
|
|
7,053 |
|
|
|
38 |
|
|
Total wealth management |
30,690 |
|
|
|
29,309 |
|
|
|
26,802 |
|
|
|
24,957 |
|
|
|
22,636 |
|
|
|
1,381 |
|
|
|
5 |
|
|
|
8,054 |
|
|
|
36 |
|
|
Mortgage banking |
50,584 |
|
|
|
113,494 |
|
|
|
86,819 |
|
|
|
108,544 |
|
|
|
102,324 |
|
|
|
(62,910 |
) |
|
|
(55 |
) |
|
|
(51,740 |
) |
|
|
(51 |
) |
|
Service charges on deposit accounts |
13,249 |
|
|
|
12,036 |
|
|
|
11,841 |
|
|
|
11,497 |
|
|
|
10,420 |
|
|
|
1,213 |
|
|
|
10 |
|
|
|
2,829 |
|
|
|
27 |
|
|
Gains on investment securities, net |
1,285 |
|
|
|
1,154 |
|
|
|
1,214 |
|
|
|
411 |
|
|
|
808 |
|
|
|
131 |
|
|
|
11 |
|
|
|
477 |
|
|
|
59 |
|
|
Fees from covered call options |
1,388 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
1,388 |
|
|
|
NM |
|
|
|
1,388 |
|
|
|
NM |
|
|
Trading (losses) gains, net |
(438 |
) |
|
|
419 |
|
|
|
(102 |
) |
|
|
183 |
|
|
|
(634 |
) |
|
|
(857 |
) |
|
|
NM |
|
|
|
196 |
|
|
|
(31 |
) |
|
Operating lease income, net |
12,240 |
|
|
|
14,440 |
|
|
|
12,118 |
|
|
|
11,717 |
|
|
|
11,785 |
|
|
|
(2,200 |
) |
|
|
(15 |
) |
|
|
455 |
|
|
|
4 |
|
|
Other: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest rate swap fees |
2,820 |
|
|
|
2,488 |
|
|
|
4,930 |
|
|
|
4,029 |
|
|
|
5,693 |
|
|
|
332 |
|
|
|
13 |
|
|
|
(2,873 |
) |
|
|
(50 |
) |
|
BOLI |
1,342 |
|
|
|
1,124 |
|
|
|
2,846 |
|
|
|
1,218 |
|
|
|
1,950 |
|
|
|
218 |
|
|
|
19 |
|
|
|
(608 |
) |
|
|
(31 |
) |
|
Administrative services |
1,228 |
|
|
|
1,256 |
|
|
|
1,263 |
|
|
|
1,077 |
|
|
|
933 |
|
|
|
(28 |
) |
|
|
(2 |
) |
|
|
295 |
|
|
|
32 |
|
|
Foreign currency remeasurement (losses) gains |
(782 |
) |
|
|
99 |
|
|
|
(208 |
) |
|
|
(54 |
) |
|
|
(208 |
) |
|
|
(881 |
) |
|
|
NM |
|
|
|
(574 |
) |
|
|
NM |
|
|
Early pay-offs of capital leases |
195 |
|
|
|
(52 |
) |
|
|
118 |
|
|
|
165 |
|
|
|
275 |
|
|
|
247 |
|
|
|
NM |
|
|
|
(80 |
) |
|
|
(29 |
) |
|
Miscellaneous |
15,572 |
|
|
|
10,739 |
|
|
|
10,720 |
|
|
|
6,849 |
|
|
|
6,011 |
|
|
|
4,833 |
|
|
|
45 |
|
|
|
9,561 |
|
|
|
NM |
|
|
Total Other |
20,375 |
|
|
|
15,654 |
|
|
|
19,669 |
|
|
|
13,284 |
|
|
|
14,654 |
|
|
|
4,721 |
|
|
|
30 |
|
|
|
5,721 |
|
|
|
39 |
|
|
Total Non-Interest Income |
$ |
129,373 |
|
|
|
$ |
186,506 |
|
|
|
$ |
158,361 |
|
|
|
$ |
170,593 |
|
|
|
$ |
161,993 |
|
|
|
$ |
(57,133 |
) |
|
|
(31 |
) |
% |
|
$ |
(32,620 |
) |
|
|
(20 |
) |
% |
NM - Not meaningful.
|
Six Months Ended |
|
|
|
|
|
Jun 30, |
|
Jun 30, |
|
$ |
|
% |
(Dollars in thousands) |
2021 |
|
2020 |
|
Change |
|
Change |
Brokerage |
$ |
10,188 |
|
|
|
$ |
9,428 |
|
|
|
$ |
760 |
|
|
|
8 |
|
% |
Trust and asset management |
49,811 |
|
|
|
39,149 |
|
|
|
10,662 |
|
|
|
27 |
|
|
Total wealth management |
59,999 |
|
|
|
48,577 |
|
|
|
11,422 |
|
|
|
24 |
|
|
Mortgage banking |
164,078 |
|
|
|
150,650 |
|
|
|
13,428 |
|
|
|
9 |
|
|
Service charges on deposit accounts |
25,285 |
|
|
|
21,685 |
|
|
|
3,600 |
|
|
|
17 |
|
|
Gains (losses) on investment securities, net |
2,439 |
|
|
|
(3,551 |
) |
|
|
5,990 |
|
|
|
NM |
|
|
Fees from covered call options |
1,388 |
|
|
|
2,292 |
|
|
|
(904 |
) |
|
|
(39 |
) |
|
Trading losses, net |
(19 |
) |
|
|
(1,085 |
) |
|
|
1,066 |
|
|
|
(98 |
) |
|
Operating lease income, net |
26,680 |
|
|
|
23,769 |
|
|
|
2,911 |
|
|
|
12 |
|
|
Other: |
|
|
|
|
|
|
|
Interest rate swap fees |
5,308 |
|
|
|
11,759 |
|
|
|
(6,451 |
) |
|
|
(55 |
) |
|
BOLI |
2,466 |
|
|
|
666 |
|
|
|
1,800 |
|
|
|
NM |
|
|
Administrative services |
2,484 |
|
|
|
2,045 |
|
|
|
439 |
|
|
|
21 |
|
|
Foreign currency remeasurement loss |
(683 |
) |
|
|
(359 |
) |
|
|
(324 |
) |
|
|
90 |
|
|
Early pay-offs of leases |
143 |
|
|
|
349 |
|
|
|
(206 |
) |
|
|
(59 |
) |
|
Miscellaneous |
26,311 |
|
|
|
18,438 |
|
|
|
7,873 |
|
|
|
43 |
|
|
Total Other |
36,029 |
|
|
|
32,898 |
|
|
|
3,131 |
|
|
|
10 |
|
|
Total Non-Interest Income |
$ |
315,879 |
|
|
|
$ |
275,235 |
|
|
|
$ |
40,644 |
|
|
|
15 |
|
% |
NM - Not meaningful.
TABLE 16: MORTGAGE BANKING
|
Three Months Ended |
Six Months Ended |
(Dollars in thousands) |
Jun 30,
2021 |
|
Mar 31,
2021 |
|
Dec 31,
2020 |
|
Sep 30,
2020 |
|
Jun 30,
2020 |
Jun 30,
2021 |
|
Jun 30,
2020 |
Originations: |
|
|
|
|
|
|
|
|
|
|
|
|
Retail
originations |
$ |
1,328,721 |
|
|
|
$ |
1,641,664 |
|
|
|
$ |
1,757,093 |
|
|
|
$ |
1,590,699 |
|
|
|
$ |
1,588,932 |
|
|
$ |
2,970,385 |
|
|
|
$ |
2,362,076 |
|
|
Veterans
First originations |
395,290 |
|
|
|
580,303 |
|
|
|
594,151 |
|
|
|
635,876 |
|
|
|
621,878 |
|
|
975,593 |
|
|
|
1,064,835 |
|
|
Total originations for sale (A) |
$ |
1,724,011 |
|
|
|
$ |
2,221,967 |
|
|
|
$ |
2,351,244 |
|
|
|
$ |
2,226,575 |
|
|
|
$ |
2,210,810 |
|
|
$ |
3,945,978 |
|
|
|
$ |
3,426,911 |
|
|
Originations for investment |
249,749 |
|
|
|
321,858 |
|
|
|
192,107 |
|
|
|
73,711 |
|
|
|
56,954 |
|
|
571,607 |
|
|
|
130,681 |
|
|
Total originations |
$ |
1,973,760 |
|
|
|
$ |
2,543,825 |
|
|
|
$ |
2,543,351 |
|
|
|
$ |
2,300,286 |
|
|
|
$ |
2,267,764 |
|
|
$ |
4,517,585 |
|
|
|
$ |
3,557,592 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Retail
originations as percentage of originations for sale |
77 |
|
% |
|
74 |
|
% |
|
75 |
|
% |
|
71 |
|
% |
|
72 |
|
% |
75 |
|
% |
|
69 |
|
% |
Veterans
First originations as a percentage of originations for sale |
23 |
|
|
|
26 |
|
|
|
25 |
|
|
|
29 |
|
|
|
28 |
|
|
25 |
|
|
|
31 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Purchases
as a percentage of originations for sale |
53 |
|
% |
|
27 |
|
% |
|
35 |
|
% |
|
41 |
|
% |
|
30 |
|
% |
38 |
|
% |
|
32 |
|
% |
Refinances as a percentage of originations for sale |
47 |
|
|
|
73 |
|
|
|
65 |
|
|
|
59 |
|
|
|
70 |
|
|
62 |
|
|
|
68 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Production Margin: |
|
|
|
|
|
|
|
|
|
|
|
|
Production revenue (B) (1) |
$ |
37,531 |
|
|
|
$ |
71,282 |
|
|
|
$ |
70,886 |
|
|
|
$ |
94,148 |
|
|
|
$ |
93,433 |
|
|
$ |
108,813 |
|
|
|
$ |
142,760 |
|
|
Production margin (B / A) |
2.18 |
|
% |
|
3.21 |
|
% |
|
3.01 |
|
% |
|
4.23 |
|
% |
|
4.23 |
|
% |
2.76 |
|
% |
|
4.17 |
|
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
Mortgage Servicing: |
|
|
|
|
|
|
|
|
|
|
|
|
Loans
serviced for others (C) |
$ |
12,307,337 |
|
|
|
$ |
11,530,676 |
|
|
|
$ |
10,833,135 |
|
|
|
$ |
10,139,878 |
|
|
|
$ |
9,188,285 |
|
|
|
|
|
MSRs, at
fair value (D) |
|
127,604 |
|
|
|
|
124,316 |
|
|
|
|
92,081 |
|
|
|
|
86,907 |
|
|
|
|
77,203 |
|
|
|
|
|
Percentage of MSRs to loans serviced for others (D / C) |
1.04 |
|
% |
|
1.08 |
|
% |
|
0.85 |
|
% |
|
0.86 |
|
% |
|
0.84 |
|
% |
|
|
|
Servicing
income |
$ |
9,830 |
|
|
|
$ |
9,636 |
|
|
|
$ |
9,829 |
|
|
|
$ |
8,118 |
|
|
|
$ |
6,908 |
|
|
$ |
19,466 |
|
|
|
$ |
13,939 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Components of MSR: |
|
|
|
|
|
|
|
|
|
|
|
|
MSR -
current period capitalization |
$ |
17,512 |
|
|
|
$ |
24,616 |
|
|
|
$ |
20,343 |
|
|
|
$ |
20,936 |
|
|
|
$ |
20,351 |
|
|
$ |
42,128 |
|
|
|
$ |
29,798 |
|
|
MSR -
collection of expected cash flows - paydowns |
(991 |
) |
|
|
(728 |
) |
|
|
(688 |
) |
|
|
(590 |
) |
|
|
(419 |
) |
|
(1,719 |
) |
|
|
(966 |
) |
|
MSR -
collection of expected cash flows - payoffs |
(7,549 |
) |
|
|
(9,440 |
) |
|
|
(8,335 |
) |
|
|
(7,272 |
) |
|
|
(8,252 |
) |
|
(16,989 |
) |
|
|
(14,728 |
) |
|
Valuation: |
|
|
|
|
|
|
|
|
|
|
|
|
MSR - changes in fair value model assumptions |
(5,540 |
) |
|
|
18,045 |
|
|
|
(5,223 |
) |
|
|
(3,002 |
) |
|
|
(7,982 |
) |
|
12,505 |
|
|
|
(22,539 |
) |
|
Gain on derivative contract held as an economic hedge, net |
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
589 |
|
|
— |
|
|
|
4,749 |
|
|
MSR valuation adjustment, net of gain on derivative contract held
as an economic hedge |
$ |
(5,540 |
) |
|
|
$ |
18,045 |
|
|
|
$ |
(5,223 |
) |
|
|
$ |
(3,002 |
) |
|
|
$ |
(7,393 |
) |
|
$ |
12,505 |
|
|
|
$ |
(17,790 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Summary of Mortgage Banking Revenue: |
|
|
|
|
|
|
|
|
|
|
|
|
Production revenue (1) |
$ |
37,531 |
|
|
|
$ |
71,282 |
|
|
|
$ |
70,886 |
|
|
|
$ |
94,148 |
|
|
|
$ |
93,433 |
|
|
$ |
108,813 |
|
|
|
$ |
142,760 |
|
|
Servicing
income |
9,830 |
|
|
|
9,636 |
|
|
|
9,829 |
|
|
|
8,118 |
|
|
|
6,908 |
|
|
19,466 |
|
|
|
13,939 |
|
|
MSR
activity |
3,432 |
|
|
|
32,493 |
|
|
|
6,097 |
|
|
|
10,072 |
|
|
|
4,287 |
|
|
35,925 |
|
|
|
(3,686 |
) |
|
Other |
(209 |
) |
|
|
83 |
|
|
|
7 |
|
|
|
(3,794 |
) |
|
|
(2,304 |
) |
|
(126 |
) |
|
|
(2,363 |
) |
|
Total mortgage banking revenue |
$ |
50,584 |
|
|
|
$ |
113,494 |
|
|
|
$ |
86,819 |
|
|
|
$ |
108,544 |
|
|
|
$ |
102,324 |
|
|
$ |
164,078 |
|
|
|
$ |
150,650 |
|
|
(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 other related
financial instruments carried at fair value, 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 |
|
Q2 2021 compared to
Q1 2020 |
|
Q2 2021 compared to
Q2 2020 |
|
Jun 30, |
|
Mar 31, |
|
Dec 31, |
|
Sep 30, |
|
Jun 30, |
|
|
(Dollars in thousands) |
2021 |
|
2021 |
|
2020 |
|
2020 |
|
2020 |
|
$ Change |
|
% Change |
|
$ Change |
|
% Change |
Salaries and employee benefits: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Salaries |
$ |
91,089 |
|
|
$ |
91,053 |
|
|
|
$ |
93,535 |
|
|
|
$ |
89,849 |
|
|
|
$ |
87,105 |
|
|
$ |
36 |
|
|
|
0 |
|
% |
|
$ |
3,984 |
|
|
|
5 |
|
% |
Commissions and incentive compensation |
53,751 |
|
|
61,367 |
|
|
|
52,383 |
|
|
|
48,475 |
|
|
|
46,151 |
|
|
(7,616 |
) |
|
|
(12 |
) |
|
|
7,600 |
|
|
|
16 |
|
|
Benefits |
27,977 |
|
|
28,389 |
|
|
|
25,198 |
|
|
|
25,718 |
|
|
|
20,900 |
|
|
(412 |
) |
|
|
(1 |
) |
|
|
7,077 |
|
|
|
34 |
|
|
Total salaries and employee benefits |
172,817 |
|
|
180,809 |
|
|
|
171,116 |
|
|
|
164,042 |
|
|
|
154,156 |
|
|
(7,992 |
) |
|
|
(4 |
) |
|
|
18,661 |
|
|
|
12 |
|
|
Equipment |
20,866 |
|
|
20,912 |
|
|
|
20,565 |
|
|
|
17,251 |
|
|
|
15,846 |
|
|
(46 |
) |
|
|
0 |
|
|
|
5,020 |
|
|
|
32 |
|
|
Operating lease equipment depreciation |
9,949 |
|
|
10,771 |
|
|
|
9,938 |
|
|
|
9,425 |
|
|
|
9,292 |
|
|
(822 |
) |
|
|
(8 |
) |
|
|
657 |
|
|
|
7 |
|
|
Occupancy, net |
17,687 |
|
|
19,996 |
|
|
|
19,687 |
|
|
|
15,830 |
|
|
|
16,893 |
|
|
(2,309 |
) |
|
|
(12 |
) |
|
|
794 |
|
|
|
5 |
|
|
Data processing |
6,920 |
|
|
6,048 |
|
|
|
5,728 |
|
|
|
5,689 |
|
|
|
10,406 |
|
|
872 |
|
|
|
14 |
|
|
|
(3,486 |
) |
|
|
(33 |
) |
|
Advertising and marketing |
11,305 |
|
|
8,546 |
|
|
|
9,850 |
|
|
|
7,880 |
|
|
|
7,704 |
|
|
2,759 |
|
|
|
32 |
|
|
|
3,601 |
|
|
|
47 |
|
|
Professional fees |
7,304 |
|
|
7,587 |
|
|
|
6,530 |
|
|
|
6,488 |
|
|
|
7,687 |
|
|
(283 |
) |
|
|
(4 |
) |
|
|
(383 |
) |
|
|
(5 |
) |
|
Amortization of other intangible assets |
2,039 |
|
|
2,007 |
|
|
|
2,634 |
|
|
|
2,701 |
|
|
|
2,820 |
|
|
32 |
|
|
|
2 |
|
|
|
(781 |
) |
|
|
(28 |
) |
|
FDIC insurance |
6,405 |
|
|
6,558 |
|
|
|
7,016 |
|
|
|
6,772 |
|
|
|
7,081 |
|
|
(153 |
) |
|
|
(2 |
) |
|
|
(676 |
) |
|
|
(10 |
) |
|
OREO expense, net |
769 |
|
|
(251 |
) |
|
|
(114 |
) |
|
|
(168 |
) |
|
|
237 |
|
|
1,020 |
|
|
|
NM |
|
|
|
532 |
|
|
|
NM |
|
|
Other: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commissions - 3rd party brokers |
889 |
|
|
846 |
|
|
|
764 |
|
|
|
778 |
|
|
|
707 |
|
|
43 |
|
|
|
5 |
|
|
|
182 |
|
|
|
26 |
|
|
Postage |
1,900 |
|
|
1,743 |
|
|
|
1,849 |
|
|
|
1,529 |
|
|
|
1,591 |
|
|
157 |
|
|
|
9 |
|
|
|
309 |
|
|
|
19 |
|
|
Miscellaneous |
21,262 |
|
|
21,317 |
|
|
|
26,304 |
|
|
|
26,002 |
|
|
|
24,948 |
|
|
(55 |
) |
|
|
0 |
|
|
|
(3,686 |
) |
|
|
(15 |
) |
|
Total other |
24,051 |
|
|
23,906 |
|
|
|
28,917 |
|
|
|
28,309 |
|
|
|
27,246 |
|
|
145 |
|
|
|
1 |
|
|
|
(3,195 |
) |
|
|
(12 |
) |
|
Total Non-Interest Expense |
$ |
280,112 |
|
|
$ |
286,889 |
|
|
|
$ |
281,867 |
|
|
|
$ |
264,219 |
|
|
|
$ |
259,368 |
|
|
$ |
(6,777 |
) |
|
|
(2 |
) |
% |
|
$ |
20,744 |
|
|
|
8 |
|
% |
NM - Not meaningful.
|
|
Six Months Ended |
|
|
|
|
|
Jun 30, |
|
Jun 30, |
$ |
|
% |
(Dollars in thousands) |
|
2021 |
|
2020 |
Change |
|
Change |
Salaries and employee benefits: |
|
|
|
|
|
|
|
Salaries |
|
$ |
182,142 |
|
|
$ |
168,391 |
|
|
$ |
13,751 |
|
|
|
8 |
|
% |
Commissions and incentive compensation |
|
115,118 |
|
|
77,726 |
|
|
37,392 |
|
|
|
48 |
|
|
Benefits |
|
56,366 |
|
|
44,801 |
|
|
11,565 |
|
|
|
26 |
|
|
Total salaries and employee benefits |
|
353,626 |
|
|
290,918 |
|
|
62,708 |
|
|
|
22 |
|
|
Equipment |
|
41,778 |
|
|
30,680 |
|
|
11,098 |
|
|
|
36 |
|
|
Operating lease equipment depreciation |
|
20,720 |
|
|
18,552 |
|
|
2,168 |
|
|
|
12 |
|
|
Occupancy, net |
|
37,683 |
|
|
34,440 |
|
|
3,243 |
|
|
|
9 |
|
|
Data processing |
|
12,968 |
|
|
18,779 |
|
|
(5,811 |
) |
|
|
(31 |
) |
|
Advertising and marketing |
|
19,851 |
|
|
18,566 |
|
|
1,285 |
|
|
|
7 |
|
|
Professional fees |
|
14,891 |
|
|
14,408 |
|
|
483 |
|
|
|
3 |
|
|
Amortization of other intangible assets |
|
4,046 |
|
|
5,683 |
|
|
(1,637 |
) |
|
|
(29 |
) |
|
FDIC insurance |
|
12,963 |
|
|
11,216 |
|
|
1,747 |
|
|
|
16 |
|
|
OREO expense, net |
|
518 |
|
|
(639 |
) |
|
1,157 |
|
|
|
NM |
|
|
Other: |
|
|
|
|
|
|
|
Commissions - 3rd party brokers |
|
1,735 |
|
|
1,572 |
|
|
163 |
|
|
|
10 |
|
|
Postage |
|
3,643 |
|
|
3,540 |
|
|
103 |
|
|
|
3 |
|
|
Miscellaneous |
|
42,579 |
|
|
46,294 |
|
|
(3,715 |
) |
|
|
(8 |
) |
|
Total other |
|
47,957 |
|
|
51,406 |
|
|
(3,449 |
) |
|
|
(7 |
) |
|
Total Non-Interest Expense |
|
$ |
567,001 |
|
|
$ |
494,009 |
|
|
$ |
72,992 |
|
|
|
15 |
|
% |
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 |
Six Months Ended |
|
Jun 30, |
|
Mar 31, |
|
Dec 31, |
|
Sep 30, |
|
Jun 30, |
Jun 30, |
|
Jun 30, |
(Dollars and shares in thousands) |
2021 |
|
2021 |
|
2020 |
|
2020 |
|
2020 |
2021 |
|
2020 |
Reconciliation of Non-GAAP Net Interest Margin and
Efficiency Ratio: |
|
|
|
(A) Interest Income (GAAP) |
$ |
319,579 |
|
|
$ |
305,469 |
|
|
$ |
307,981 |
|
|
$ |
311,156 |
|
|
$ |
329,816 |
|
$ |
625,048 |
|
|
$ |
673,883 |
|
|
Taxable-equivalent adjustment: |
|
|
|
|
|
|
|
|
|
|
|
|
- Loans |
415 |
|
|
384 |
|
|
324 |
|
|
481 |
|
|
576 |
|
799 |
|
|
1,436 |
|
|
- Liquidity Management Assets |
494 |
|
|
500 |
|
|
530 |
|
|
546 |
|
|
538 |
|
994 |
|
|
1,089 |
|
|
- Other Earning Assets |
— |
|
|
— |
|
|
3 |
|
|
1 |
|
|
3 |
|
— |
|
|
5 |
|
|
(B) Interest Income (non-GAAP) |
$ |
320,488 |
|
|
$ |
306,353 |
|
|
$ |
308,838 |
|
|
$ |
312,184 |
|
|
$ |
330,933 |
|
$ |
626,841 |
|
|
$ |
676,413 |
|
|
(C) Interest Expense (GAAP) |
39,989 |
|
|
43,574 |
|
|
48,584 |
|
|
55,220 |
|
|
66,685 |
|
83,563 |
|
|
149,309 |
|
|
(D) Net Interest Income (GAAP) (A minus C) |
$ |
279,590 |
|
|
$ |
261,895 |
|
|
$ |
259,397 |
|
|
$ |
255,936 |
|
|
$ |
263,131 |
|
$ |
541,485 |
|
|
$ |
524,574 |
|
|
(E) Net Interest Income (non-GAAP) (B minus
C) |
$ |
280,499 |
|
|
$ |
262,779 |
|
|
$ |
260,254 |
|
|
$ |
256,964 |
|
|
$ |
264,248 |
|
$ |
543,278 |
|
|
$ |
527,104 |
|
|
Net interest margin (GAAP) |
2.62 |
% |
|
2.53 |
% |
|
2.53 |
% |
|
2.56 |
% |
|
2.73 |
% |
2.58 |
% |
|
2.91 |
|
% |
Net interest margin, fully taxable-equivalent
(non-GAAP) |
2.63 |
|
|
2.54 |
|
|
2.54 |
|
|
2.57 |
|
|
2.74 |
|
2.59 |
|
|
2.93 |
|
|
(F) Non-interest income |
$ |
129,373 |
|
|
$ |
186,506 |
|
|
$ |
158,361 |
|
|
$ |
170,593 |
|
|
$ |
161,993 |
|
$ |
315,879 |
|
|
$ |
275,235 |
|
|
(G) Gains on investment securities, net |
1,285 |
|
|
1,154 |
|
|
1,214 |
|
|
411 |
|
|
808 |
|
2,439 |
|
|
(3,551 |
) |
|
(H) Non-interest expense |
280,112 |
|
|
286,889 |
|
|
281,867 |
|
|
264,219 |
|
|
259,368 |
|
567,001 |
|
|
494,009 |
|
|
Efficiency ratio (H/(D+F-G)) |
68.71 |
% |
|
64.15 |
% |
|
67.67 |
% |
|
62.01 |
% |
|
61.13 |
% |
66.32 |
% |
|
61.49 |
|
% |
Efficiency ratio (non-GAAP) (H/(E+F-G)) |
68.56 |
|
|
64.02 |
|
|
67.53 |
|
|
61.86 |
|
|
60.97 |
|
66.18 |
|
|
61.30 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of Non-GAAP Tangible Common Equity
Ratio: |
|
|
|
Total
shareholders’ equity (GAAP) |
$ |
4,339,011 |
|
|
$ |
4,252,511 |
|
|
$ |
4,115,995 |
|
|
$ |
4,074,089 |
|
|
$ |
3,990,218 |
|
|
|
|
Less:
Non-convertible preferred stock (GAAP) |
|
(412,500 |
)
|
|
|
(412,500 |
) |
|
|
(412,500 |
) |
|
|
(412,500 |
) |
|
|
(412,500 |
) |
|
|
|
Less:
Intangible assets (GAAP) |
|
(678,333 |
)
|
|
|
(680,052 |
) |
|
|
(681,747 |
) |
|
|
(683,314 |
) |
|
|
(685,581 |
) |
|
|
|
(I) Total tangible common shareholders’ equity (non-GAAP) |
$ |
3,248,178 |
|
|
$ |
3,159,959 |
|
|
$ |
3,021,748 |
|
|
$ |
2,978,275 |
|
|
$ |
2,892,137 |
|
|
|
|
(J) Total
assets (GAAP) |
$ |
46,738,450 |
|
|
$ |
45,682,202 |
|
|
$ |
45,080,768 |
|
|
$ |
43,731,718 |
|
|
$ |
43,540,017 |
|
|
|
|
Less:
Intangible assets (GAAP) |
|
(678,333 |
)
|
|
|
(680,052 |
) |
|
|
(681,747 |
) |
|
|
(683,314 |
) |
|
|
(685,581 |
) |
|
|
|
(K) Total tangible assets (non-GAAP) |
$ |
46,060,117 |
|
|
$ |
45,002,150 |
|
|
$ |
44,399,021 |
|
|
$ |
43,048,404 |
|
|
$ |
42,854,436 |
|
|
|
|
Common equity to assets ratio (GAAP) (L/J) |
8.4 |
% |
|
8.4 |
% |
|
8.2 |
% |
|
8.4 |
% |
|
8.2 |
% |
|
|
|
Tangible common equity ratio (non-GAAP) (I/K) |
7.1 |
|
|
7.0 |
|
|
6.8 |
|
|
6.9 |
|
|
6.7 |
|
|
|
|
|
Three Months Ended |
Six Months Ended |
|
Jun 30, |
|
Mar 31, |
|
Dec 31, |
|
Sep 30, |
|
Jun 30, |
Jun 30, |
|
Jun 30, |
(Dollars and shares in thousands) |
2021 |
|
2021 |
|
2020 |
|
2020 |
|
2020 |
2021 |
|
2020 |
Reconciliation of Non-GAAP Tangible Book Value per Common
Share: |
|
|
|
Total shareholders’ equity |
$ |
4,339,011 |
|
|
|
$ |
4,252,511 |
|
|
|
$ |
4,115,995 |
|
|
|
$ |
4,074,089 |
|
|
|
$ |
3,990,218 |
|
|
|
|
|
Less: Preferred stock |
(412,500 |
) |
|
|
(412,500 |
) |
|
|
(412,500 |
) |
|
|
(412,500 |
) |
|
|
(412,500 |
) |
|
|
|
|
(L) Total common equity |
$ |
3,926,511 |
|
|
|
$ |
3,840,011 |
|
|
|
$ |
3,703,495 |
|
|
|
$ |
3,661,589 |
|
|
|
$ |
3,577,718 |
|
|
|
|
|
(M) Actual common shares outstanding |
57,067 |
|
|
|
57,023 |
|
|
|
56,770 |
|
|
|
57,602 |
|
|
|
57,574 |
|
|
|
|
|
Book value per common share (L/M) |
$ |
68.81 |
|
|
|
$ |
67.34 |
|
|
|
$ |
65.24 |
|
|
|
$ |
63.57 |
|
|
|
$ |
62.14 |
|
|
|
|
|
Tangible book value per common share (non-GAAP)
(I/M) |
56.92 |
|
|
|
$ |
55.42 |
|
|
|
53.23 |
|
|
|
51.70 |
|
|
|
50.23 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of Non-GAAP Return on Average Tangible
Common Equity: |
|
|
|
(N) Net income applicable to common shares |
$ |
98,118 |
|
|
|
$ |
146,157 |
|
|
|
$ |
94,213 |
|
|
|
$ |
97,029 |
|
|
|
$ |
19,609 |
|
|
$ |
244,275 |
|
|
|
$ |
80,371 |
|
|
Add: Intangible asset amortization |
2,039 |
|
|
|
2,007 |
|
|
|
2,634 |
|
|
|
2,701 |
|
|
|
2,820 |
|
|
4,046 |
|
|
|
5,683 |
|
|
Less: Tax effect of intangible asset amortization |
(553 |
) |
|
|
(522 |
) |
|
|
(656 |
) |
|
|
(589 |
) |
|
|
(832 |
) |
|
(1,068 |
) |
|
|
(1,608 |
) |
|
After-tax intangible asset amortization |
$ |
1,486 |
|
|
|
$ |
1,485 |
|
|
|
$ |
1,978 |
|
|
|
$ |
2,112 |
|
|
|
$ |
1,988 |
|
|
$ |
2,978 |
|
|
|
$ |
4,075 |
|
|
(O) Tangible net income applicable to common shares (non-GAAP) |
$ |
99,604 |
|
|
|
$ |
147,642 |
|
|
|
$ |
96,191 |
|
|
|
$ |
99,141 |
|
|
|
$ |
21,597 |
|
|
$ |
247,253 |
|
|
|
$ |
84,446 |
|
|
Total average shareholders’ equity |
$ |
4,256,778 |
|
|
|
$ |
4,164,890 |
|
|
|
$ |
4,050,286 |
|
|
|
$ |
4,034,902 |
|
|
|
$ |
3,908,846 |
|
|
$ |
4,211,088 |
|
|
|
$ |
3,809,508 |
|
|
Less: Average preferred stock |
(412,500 |
) |
|
|
(412,500 |
) |
|
|
(412,500 |
) |
|
|
(412,500 |
) |
|
|
(273,489 |
) |
|
(412,500 |
) |
|
|
(199,245 |
) |
|
(P) Total average common shareholders’ equity |
$ |
3,844,278 |
|
|
|
$ |
3,752,390 |
|
|
|
$ |
3,637,786 |
|
|
|
$ |
3,622,402 |
|
|
|
$ |
3,635,357 |
|
|
$ |
3,798,588 |
|
|
|
$ |
3,610,263 |
|
|
Less: Average intangible assets |
(679,535 |
) |
|
|
(680,805 |
) |
|
|
(682,290 |
) |
|
|
(684,717 |
) |
|
|
(686,526 |
) |
|
(680,166 |
) |
|
|
(688,652 |
) |
|
(Q) Total average tangible common shareholders’ equity
(non-GAAP) |
$ |
3,164,743 |
|
|
|
$ |
3,071,585 |
|
|
|
$ |
2,955,496 |
|
|
|
$ |
2,937,685 |
|
|
|
$ |
2,948,831 |
|
|
$ |
3,118,422 |
|
|
|
$ |
2,921,611 |
|
|
Return on average common equity, annualized
(N/P) |
10.24 |
|
% |
|
15.80 |
|
% |
|
10.30 |
|
% |
|
10.66 |
|
% |
|
2.17 |
|
% |
12.97 |
|
% |
|
4.48 |
|
% |
Return on average tangible common equity, annualized
(non-GAAP) (O/Q) |
12.62 |
|
|
|
19.49 |
|
|
|
12.95 |
|
|
|
13.43 |
|
|
|
2.95 |
|
|
15.99 |
|
|
|
5.81 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of Non-GAAP Pre-Tax, Pre-Provision
Income: |
|
|
|
|
|
Income before taxes |
$ |
144,150 |
|
|
|
$ |
206,859 |
|
|
|
$ |
134,711 |
|
|
|
$ |
137,284 |
|
|
|
$ |
30,703 |
|
|
$ |
351,009 |
|
|
|
$ |
117,786 |
|
|
Add: Provision for credit losses |
(15,299 |
) |
|
|
(45,347 |
) |
|
|
1,180 |
|
|
|
25,026 |
|
|
|
135,053 |
|
|
(60,646 |
) |
|
|
188,014 |
|
|
Pre-tax income, excluding provision for credit losses
(non-GAAP) |
$ |
128,851 |
|
|
|
$ |
161,512 |
|
|
|
$ |
135,891 |
|
|
|
$ |
162,310 |
|
|
|
$ |
165,756 |
|
|
$ |
290,363 |
|
|
|
$ |
305,800 |
|
|
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, Northfield,
Norridge, Oak Lawn, Orland Park, Palatine, Park Ridge, Prospect
Heights, 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 Burlington, Clinton,
Delafield, Delavan, Elm Grove, Genoa City, Kenosha, Lake Geneva,
Madison, Menomonee Falls, Milwaukee, Pewaukee, Racine, 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 and Wintrust Life Finance, each 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 and
which may include, but are not limited to, those listed below and
the Risk Factors discussed under Item 1A of the Company’s 2020
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,
including the emergence of variant strains, 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 (including
ransomware);
- 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, 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
Tuesday, July 20, 2021 at 11:00 a.m. (Central Time) regarding
second quarter 2021 results. Individuals interested in listening
should call (877) 363-5049 and enter Conference ID #8765066. A
simultaneous audio-only webcast and replay of the conference call
as well as an accompanying slide presentation may be accessed via
the Company’s website at https://www.wintrust.com,
Investor Relations, Investor News and Events,
Presentations & Conference Calls. The text of the second
quarter 2021 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
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