ROSEMONT, Ill., Oct. 19, 2021 (GLOBE NEWSWIRE)
-- Wintrust Financial Corporation (“Wintrust”, “the Company”, "we"
or "our") (Nasdaq: WTFC) announced net income of $109.1 million or
$1.77 per diluted common share for the third quarter of 2021, an
increase in diluted earnings per common share of 4% compared to the
second quarter of 2021 and an increase of 6% compared to the third
quarter of 2020. The Company recorded net income of $367.4 million
or $6.00 per diluted common share for the first nine months of 2021
compared to net income of $191.8 million or $3.06 per diluted
common share for the same period of 2020.
Highlights of the Third Quarter of
2021:
Comparative information to the second 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 $701
million and niche loans increased by $449 million. See Table 1 for
more information.
- PPP loans declined by $797 million
in the third quarter of 2021 primarily as a result of processing
forgiveness payments.
- Total assets increased by $1.1
billion.
- Total deposits increased by $1.1
billion, including a $459 million increase in non-interest bearing
deposits.
- Net interest income increased by
$7.9 million as compared to the second quarter of 2021 as follows:
- Increased $16.3 million primarily
due to earning asset growth and a nine basis point decline in
deposit costs.
- Increased $3.0 million due to one
additional day in the quarter.
- Decreased by $11.4 million due to
$3.6 million of less PPP interest income and $7.8 million of less
PPP fee income.
- Net interest margin decreased by
four basis points primarily due to increased liquidity.
- Recorded no material net
charge-offs in the third quarter of 2021 as compared to very
minimal net charge-offs of $1.9 million in the second quarter of
2021.
- Recorded a negative provision for
credit losses of $7.9 million in the third quarter of 2021 as
compared to a negative provision for credit losses of $15.3 million
in the second quarter of 2021.
- The allowance for credit losses on
our core loan portfolio is approximately 1.38% of the outstanding
balance as of September 30, 2021, down from 1.49% as of June 30,
2021. See Table 12 for more information.
- Non-performing loans remained low
at 0.27% of total loans, as of September 30, 2021, unchanged from
the second quarter of 2021.
- Mortgage banking revenue increased
to $55.8 million for the third quarter of 2021 as compared to $50.6
million in the second quarter of 2021.
- Tangible book value per common
share (non-GAAP) increased to $58.32 as compared to $56.92 as of
June 30, 2021. See Table 18 for reconciliation of non-GAAP
measures.
- Repurchased 134,062 shares of our
common stock at a cost of $9.5 million, or an average price of
$71.13 per share.
Edward J. Wehmer, Founder and Chief Executive
Officer, commented, "The third quarter of 2021 was characterized by
significant organic loan and deposit growth, increased net interest
income, strong mortgage banking revenue, record wealth management
revenue, tangible book value growth and very good credit quality
metrics. Wintrust reported net income of $109.1 million for the
third quarter of 2021, up from $105.1 million in the second quarter
of 2021. On a year-to-date basis, net income totaled $367.4 million
for the first nine months of 2021, up from $191.8 million in the
first nine months of 2020, a 92% increase. The Company continues to
grow as total assets of $47.8 billion as of September 30, 2021
increased by $1.1 billion as compared to June 30, 2021 and
increased by $4.1 billion as compared to September 30, 2020."
Mr. Wehmer continued, "The Company experienced
significant loan growth, excluding PPP loans, of $1.2 billion or
15%, on an annualized basis in the third 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. Growth
was particularly strong in the commercial loan portfolio due to new
customer relationships and a slight increase in line of credit
utilization. We are still experiencing historically low commercial
line of credit utilization and feel confident that we can continue
to grow loans given our robust loan pipelines and diversified loan
portfolio. Total deposits increased by $1.1 billion as compared to
the second quarter of 2021 primarily in products with zero or near
zero interest rates contributing to a decrease in our cost of
funds. 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
83.3% and we believe that we have sufficient liquidity to meet
customer loan demand."
Mr. Wehmer commented, "Net interest income
increased by $7.9 million in the third quarter of 2021 primarily
due to earning asset growth and a decline in deposit costs. Even
amid a challenging interest rate environment, the Company has
managed to increase net interest income for four quarters in a row.
Especially noteworthy this quarter was that net interest income
increased considerably despite recording $11.4 million of less
interest income on PPP loans. This demonstrates that our growth
strategy has been able to replace PPP loans and sustain loan
portfolio growth benefiting future quarters. Net interest margin
decreased by four basis points in the third quarter of 2021 as
compared to the second quarter of 2021 primarily due to increased
liquidity. Excluding the unfavorable net interest margin impact
from increased liquidity, the margin exhibited improvement as the
rate on deposits declined nine basis points as compared to a two
basis point decline in loan yields. We continue to monitor our
excess liquidity position and the available market returns on
investments. We believe that deploying liquidity could potentially
increase our net interest margin and net interest income.
Additionally, we remain in an asset sensitive interest rate
position which should allow our net interest income and net
interest margin to benefit from future increases in interest
rates."
Mr. Wehmer noted, “We recorded mortgage banking
revenue of $55.8 million in the third quarter of 2021 as compared
to $50.6 million in the second quarter of 2021. Loan volumes
originated for sale in the third quarter of 2021 were $1.6 billion,
down from $1.7 billion in the second quarter of 2021. However,
production margin improved in the third quarter of 2021 as compared
to the second quarter of 2021. Additionally, the Company recorded
an $888,000 decrease in the value of mortgage servicing rights
related to changes in fair value model assumptions as compared to a
$5.5 million decrease recognized in the second quarter of 2021.
Based on current market conditions, we expect that mortgage
originations will decline by 20-30% in the fourth quarter of 2021
as compared to the third quarter of 2021 due to the seasonal
decline in home purchase activity and declining refinance
volumes.
Commenting on credit quality, Mr. Wehmer stated,
"The Company recorded no material net charge-offs in third quarter
of 2021. This follows the second quarter of 2021 which also
exhibited very low levels of net charge-offs totaling $1.9 million.
The recent results demonstrate Wintrust’s conservative credit
underwriting approach and our continued diligence in timely
addressing problem credits. The Company recorded a negative
provision for credit losses of $7.9 million in the third quarter of
2021 primarily related to improving credit quality in the loan
portfolio. The level of non-performing loans remained historically
low and unchanged at 0.27% of total loans as of both September 30,
2021 and June 30, 2021. The allowance for credit losses on our core
loan portfolio as of September 30, 2021 is approximately 1.38% 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 third 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 continue 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."
The graphs below illustrate certain financial
highlights of the third 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/fef11bc9-4918-4c82-bdbe-c78dadfc914a
SUMMARY OF RESULTS:
BALANCE SHEET
Total asset growth of $1.1 billion in the third
quarter of 2021 was primarily comprised of a $525 million increase
in interest bearing deposits with banks and a $1.2 billion increase
in total loans, excluding PPP loans. These increases were partially
offset by a $797 million decrease in PPP loans and a $59.7 million
decrease in mortgage loans held-for-sale. As of September 30, 2021,
approximately 95% of PPP loan balances originated in 2020 were
forgiven with nearly all of the remaining loan balance in the
forgiveness review or submission process. Whereas, as of September
30, 2021, approximately 32% of PPP loan balances originated in 2021
were forgiven, 16% are in the forgiveness review or submission
process and 52% have yet to apply for forgiveness. 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 $5.2 billion of interest-bearing deposits
with banks held as of September 30, 2021 provides more than
sufficient liquidity to operate its business plan with the ability
to deploy excess liquidity into higher yielding investments when
market returns improve.
Total liabilities increased $1.0 billion in the
third quarter of 2021 resulting primarily from a $1.1 billion
increase in total deposits. The increase in deposits was primarily
due to a $914 million increase in money market deposits and a $459
million increase in non-interest bearing deposits. The Company's
loans to deposits ratio ended the quarter at 83.3%. 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 third quarter of 2021, net interest
income totaled $287.5 million, an increase of $7.9 million as
compared to the second quarter of 2021 and an increase of $31.6
million as compared to the third quarter of 2020. The $7.9 million
increase in net interest income in the third quarter of 2021
compared to the second quarter of 2021 was primarily due to earning
asset growth and a decline in deposit costs. Additionally, the net
interest income growth occurred despite a decline of $11.4 million
due to $3.6 million of less PPP interest income and $7.8 million of
less PPP fee income. As of September 30, 2021, the Company had
approximately $24.8 million of net PPP loan fees that have yet to
be recognized in income.
Net interest margin was 2.58% (2.59% on a fully
taxable-equivalent basis, non-GAAP) during the third quarter of
2021 compared to 2.62% (2.63% on a fully taxable-equivalent basis,
non-GAAP) during the second quarter of 2021 and up from 2.56%
(2.57% on a fully taxable-equivalent basis, non-GAAP) during the
third quarter of 2020. The net interest margin decrease as compared
to the prior quarter was primarily due to the 10 basis point
decrease in yield on earning assets and two basis point decrease in
the net free funds contribution partially offset by an eight basis
point decrease in the rate paid on interest-bearing liabilities.
The decrease in the rate paid on interest-bearing liabilities in
the third quarter of 2021 as compared to the prior quarter is
primarily due to a nine basis point decrease in the rate paid on
interest-bearing deposits primarily due to lower repricing of time
deposits. The 10 basis point decrease in the yield on earning
assets in the third quarter of 2021 as compared to the second
quarter of 2021 was primarily due to a shift in earning asset mix
with increasing levels of low yielding liquidity management
assets.
For more information regarding net interest
income, see Tables 4 through 8 in this report.
ASSET QUALITY
The allowance for credit losses totaled $296.1
million as of September 30, 2021, a decrease of $8.0 million
as compared to $304.1 million as of June 30, 2021. The
allowance for credit losses decreased primarily due to improving
credit quality in the loan portfolio which was partially offset by
uncertainty in the positive directionality of macroeconomic
factors. A negative provision for credit losses totaling $7.9
million was recorded for the third quarter of 2021 compared to a
negative provision of $15.3 million for the second quarter of 2021
and $25.0 million of expense for the third 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") accounting standard
requires the Company to estimate expected credit losses over the
life of the Company’s financial assets as of the reporting date.
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
September 30, 2021, June 30, 2021, and March 31,
2021 is shown on Table 12 of this report.
Net charge-offs totaled $2,000 in the third
quarter of 2021, as compared to $1.9 million in the second quarter
of 2021 and $9.3 million in the third quarter of 2020. Net
charge-offs as a percentage of average total loans were reported as
zero basis points in the third quarter of 2021 on an annualized
basis compared to two basis points on an annualized basis in the
second quarter of 2021 and 12 basis points on an annualized basis
in the third quarter of 2020. For more information regarding net
charge-offs, see Table 10 in this report.
As of September 30, 2021, $32.9 million of
all loans, or 0.1%, were 60 to 89 days past due and $128.8 million,
or 0.4%, were 30 to 59 days (or one payment) past due. 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. 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 September 30, 2021. Home equity loans at September 30,
2021 that are current with regard to the contractual terms of the
loan agreement represent 98.6% of the total home equity portfolio.
Residential real estate loans at September 30, 2021 that are
current with regards to the contractual terms of the loan
agreements comprised 98.4% 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 $72 million or 0.2% of total
loans, excluding PPP loans as of September 30, 2021 as
compared to $146 million or 0.5% as of June 30, 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 September 30, 2021, compared to 0.22%
at June 30, 2021, and 0.42% at September 30, 2020.
Non-performing assets totaled $103.9 million at September 30,
2021, compared to $103.3 million at June 30, 2021 and $182.3
million at September 30, 2020. Non-performing loans totaled
$90.0 million, or 0.27% of total loans, at September 30, 2021
compared to $87.7 million, or 0.27% of total loans, at
June 30, 2021 and $173.1 million, or 0.54% of total loans, at
September 30, 2020. Other real estate owned ("OREO") totaled
$13.8 million at September 30, 2021, a decrease of $1.7
million compared to $15.6 million at June 30, 2021 and an
increase of $4.6 million compared to $9.2 million at
September 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 $841,000
during the third quarter of 2021 as compared to the second 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 increased by $5.2
million in the third quarter of 2021 as compared to the second
quarter of 2021, primarily due to an $888,000 unfavorable mortgage
servicing rights portfolio fair value adjustment as compared to a
$5.5 million decrease recognized in the prior quarter related to
changes in fair value model assumptions and a $1.7 million increase
in production revenue. Loans originated for sale were $1.6 billion
in the third quarter of 2021, a decrease of $165 million as
compared to the second quarter of 2021. The percentage of
origination volume from refinancing activities was 44% in the third
quarter of 2021 as compared to 47% in the second 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 third quarter of 2021, the fair value
of the mortgage servicing rights portfolio increased primarily due
to the capitalization of $15.5 million of servicing rights
partially offset by a reduction in value of $8.6 million due to
payoffs and paydowns of the existing portfolio and a fair value
adjustment decrease of $888,000.
The Company recognized net losses on investment
securities of $2.4 million in the third quarter of 2021 as compared
to net gains of $1.3 million recognized in the second quarter of
2021.
Other non-interest income increased by $3.0
million in the third quarter of 2021 as compared to the second
quarter of 2021 primarily due to a $2.0 million increase in
interest rate swap fees and a $2.2 million increase in income on
partnership investments. Other non-interest income during the
second quarter of 2021 included a $4.0 million net gain recorded on
the 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 $1.9 million in the third quarter of 2021 as compared to the
second quarter of 2021. The $1.9 million decline is primarily
related to $6.3 million of lower compensation expense associated
with the mortgage banking operation offset somewhat by higher
incentive compensation expense for annual bonus and long-term
incentive compensation plans during the third quarter relative to
the second quarter.
Advertising and marketing expense totaled $13.4
million in the third quarter of 2021, an increase of $2.1 million
as compared to the second quarter of 2021. The increase in the
third 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.
The Company recorded a net OREO gain of $1.5
million in the third quarter of 2021 as compared to a net expense
of $769,000 in the second quarter of 2021. The net gain is
primarily attributable to the sale of OREO properties during the
third quarter of 2021.
Miscellaneous expense in the third quarter of
2021 increased by $2.2 million as compared to the second quarter of
2021. The increase was primarily impacted by approximately $1.7
million of more travel and entertainment expenses due to increased
expenses associated with in-person client relationship meetings and
conferences as well as some additional expense associated with an
all-employee event to celebrate Wintrust’s 30th anniversary and to
thank our employees for performing so well during the pandemic.
Additionally, the third quarter of 2021 included a $271,000
reversal of contingent consideration expense related to the
previous acquisition of mortgage operations as compared to a $1.4
million reversal of contingent consideration expense in the second
quarter of 2021. The Company expects no additional material
adjustments to the contingent consideration liability in future
periods. Miscellaneous expense also includes ATM expenses,
correspondent bank charges, directors fees, telephone, travel and
entertainment, corporate insurance, dues and subscriptions, problem
loan expenses and lending origination costs that are not
deferred.
For more information regarding non-interest
expense, see Table 17 in this report.
INCOME TAXES
The Company recorded income tax expense of $40.6
million in the third quarter of 2021 compared to $39.0 million in
the second quarter of 2021 and $30.0 million in the third quarter
of 2020. The effective tax rates were 27.12% in the third quarter
of 2021 compared to 27.08% in the second quarter of 2021 and 21.83%
in the third quarter of 2020. The lower effective tax rate in the
third quarter of 2020 was a result of a $9.0 million state income
tax benefit ($7.1 million after federal taxes) related to the
settlement of an uncertain tax position in the quarter.
BUSINESS UNIT SUMMARY
Community Banking
Through its community banking unit, the Company
provides banking and financial services primarily to individuals,
small to mid-sized businesses, local governmental units and
institutional clients residing primarily in the local areas the
Company services. In the third quarter of 2021, this unit expanded
its loan portfolio and its deposit portfolio. The segment’s net
interest margin decreased in the third quarter of 2021 as compared
to the second quarter of 2021 primarily due to increased
liquidity.
Mortgage banking revenue was $55.8 million for
the third quarter of 2021, an increase of $5.2 million as compared
to the second quarter of 2021. Service charges on deposit accounts
totaled $14.1 million in the third quarter of 2021, an increase of
$900,000 as compared to the second 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
September 30, 2021. Before the impact of scheduled payments
and prepayments, gross commercial and commercial real estate loan
pipelines were estimated to be approximately $1.4 billion to $1.5
billion at September 30, 2021. When adjusted for the
probability of closing, the pipelines were estimated to be
approximately $900 million to $1.0 billion at September 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 $3.1 billion during
the third quarter of 2021 and average balances increased by $735
million as compared to the second quarter of 2021. The increase in
average balances in the insurance premium finance receivables
portfolios primarily generated a $7.6 million increase in interest
income. The Company’s leasing portfolio remained effectively
unchanged from the second quarter of 2021 to the third quarter of
2021, with its portfolio of assets, including capital leases, loans
and equipment on operating leases, at $2.3 billion at the end of
the third quarter of 2021. Revenues from the Company’s out-sourced
administrative services business were $1.4 million in the third
quarter of 2021, up $131,000 from the second 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 $31.5 million in the
third quarter of 2021, an increase of $841,000 compared to the
second quarter of 2021. Increases in asset management fees were
primarily due to favorable equity market performance during the
third quarter of 2021. At September 30, 2021, the Company’s
wealth management subsidiaries had approximately $34.5 billion of
assets under administration, which included $5.1 billion of assets
owned by the Company and its subsidiary banks, representing a
$326.3 million increase from the $34.2 billion of assets under
administration at June 30, 2021.
WINTRUST FINANCIAL
CORPORATION
Key Operating
Measures
Wintrust’s key operating measures and growth
rates for the third quarter of 2021, as compared to the second
quarter of 2021 (sequential quarter) and third quarter of 2020
(linked quarter), are shown in the table below:
|
|
|
|
|
|
|
% or(1)
basis point
(bp) change
from
2nd Quarter 2021 |
|
% or
basis point
(bp) change
from
3rd Quarter
2020 |
|
|
Three Months Ended |
|
(Dollars in thousands, except per share data) |
|
Sep 30, 2021 |
|
Jun 30, 2021 |
|
Sep 30, 2020 |
|
Net income |
|
$ |
109,137 |
|
|
$ |
105,109 |
|
|
$ |
107,315 |
|
4 |
|
% |
|
|
2 |
|
% |
|
Pre-tax
income, excluding provision for credit losses (non-GAAP)
(2) |
|
141,826 |
|
|
128,851 |
|
|
162,310 |
|
10 |
|
|
|
|
(13 |
) |
|
|
Net
income per common share – diluted |
|
1.77 |
|
|
1.70 |
|
|
1.67 |
|
4 |
|
|
|
|
6 |
|
|
|
Net
revenue (3) |
|
423,970 |
|
|
408,963 |
|
|
426,529 |
|
4 |
|
|
|
|
(1 |
) |
|
|
Net
interest income |
|
287,496 |
|
|
279,590 |
|
|
255,936 |
|
3 |
|
|
|
|
12 |
|
|
|
Net
interest margin |
|
2.58 |
% |
|
2.62 |
% |
|
2.56 |
% |
(4 |
) |
bps |
|
|
2 |
|
bps |
|
Net
interest margin – fully taxable-equivalent (non-GAAP)
(2) |
|
2.59 |
|
|
2.63 |
|
|
2.57 |
|
(4 |
) |
|
|
|
2 |
|
|
|
Net
overhead ratio (4) |
|
1.22 |
|
|
1.32 |
|
|
0.87 |
|
(10 |
) |
|
|
|
35 |
|
|
|
Return on
average assets |
|
0.92 |
|
|
0.92 |
|
|
0.99 |
|
— |
|
|
|
|
(7 |
) |
|
|
Return on
average common equity |
|
10.31 |
|
|
10.24 |
|
|
10.66 |
|
7 |
|
|
|
|
(35 |
) |
|
|
Return on average tangible common equity (non-GAAP)
(2) |
|
12.62 |
|
|
12.62 |
|
|
13.43 |
|
— |
|
|
|
|
(81 |
) |
|
|
At end of period |
|
|
|
|
|
|
|
|
|
|
|
Total
assets |
|
$ |
47,832,271 |
|
|
$ |
46,738,450 |
|
|
$ |
43,731,718 |
|
9 |
|
% |
|
|
9 |
|
% |
|
Total
loans (5) |
|
33,264,043
|
|
|
32,911,187 |
|
|
32,135,555 |
|
4 |
|
|
|
|
4 |
|
|
|
Total
deposits |
|
39,952,558
|
|
|
38,804,616 |
|
|
35,844,422 |
|
12 |
|
|
|
|
11 |
|
|
|
Total shareholders’ equity |
|
4,410,317
|
|
|
4,339,011 |
|
|
4,074,089 |
|
7 |
|
|
|
|
8 |
|
|
|
(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 |
Nine Months Ended |
(Dollars in thousands, except per share data) |
|
Sep 30,
2021 |
|
Jun 30,
2021 |
|
Mar 31,
2021 |
|
Dec 31,
2020 |
|
Sep 30,
2020 |
Sep 30,
2021 |
|
Sep 30,
2020 |
Selected Financial Condition Data (at end of
period): |
|
|
|
Total
assets |
|
$ |
47,832,271 |
|
|
$ |
46,738,450 |
|
|
$ |
45,682,202 |
|
|
$ |
45,080,768 |
|
|
$ |
43,731,718 |
|
|
|
|
Total
loans (1) |
|
|
33,264,043 |
|
|
|
32,911,187 |
|
|
|
33,171,233 |
|
|
|
32,079,073 |
|
|
|
32,135,555 |
|
|
|
|
Total
deposits |
|
|
39,952,558 |
|
|
|
38,804,616 |
|
|
|
37,872,652 |
|
|
|
37,092,651 |
|
|
|
35,844,422 |
|
|
|
|
Junior
subordinated debentures |
|
|
253,566 |
|
|
|
253,566 |
|
|
|
253,566 |
|
|
|
253,566 |
|
|
|
253,566 |
|
|
|
|
Total shareholders’ equity |
|
|
4,410,317 |
|
|
|
4,339,011 |
|
|
|
4,252,511 |
|
|
|
4,115,995 |
|
|
|
4,074,089 |
|
|
|
|
Selected Statements of Income Data: |
|
|
|
Net
interest income |
|
$ |
287,496 |
|
|
$ |
279,590 |
|
|
$ |
261,895 |
|
|
$ |
259,397 |
|
|
$ |
255,936 |
|
$ |
828,981 |
|
|
$ |
780,510 |
|
Net
revenue (2) |
|
423,970 |
|
|
408,963 |
|
|
448,401 |
|
|
417,758 |
|
|
426,529 |
|
1,281,334 |
|
|
1,226,338 |
|
Net
income |
|
109,137 |
|
|
105,109 |
|
|
153,148 |
|
|
101,204 |
|
|
107,315 |
|
367,394 |
|
|
191,786 |
|
Pre-tax
income, excluding provision for credit losses (non-GAAP)
(3) |
|
141,826 |
|
|
128,851 |
|
|
161,512 |
|
|
135,891 |
|
|
162,310 |
|
432,189 |
|
|
468,110 |
|
Net
income per common share – Basic |
|
1.79 |
|
|
1.72 |
|
|
2.57 |
|
|
1.64 |
|
|
1.68 |
|
6.08 |
|
|
3.08 |
|
Net income per common share – Diluted |
|
1.77 |
|
|
1.70 |
|
|
2.54 |
|
|
1.63 |
|
|
1.67 |
|
6.00 |
|
|
3.06 |
|
Selected Financial Ratios and Other Data: |
|
|
|
Performance Ratios: |
|
|
|
Net
interest margin |
|
2.58 |
% |
|
2.62 |
% |
|
2.53 |
% |
|
2.53 |
% |
|
2.56 |
% |
2.58 |
% |
|
2.79 |
% |
Net
interest margin – fully taxable-equivalent (non-GAAP)
(3) |
|
2.59 |
|
|
2.63 |
|
|
2.54 |
|
|
2.54 |
|
|
2.57 |
|
2.59 |
|
|
2.80 |
|
Non-interest income to average assets |
|
1.15 |
|
|
1.13 |
|
|
1.68 |
|
|
1.44 |
|
|
1.58 |
|
1.31 |
|
|
1.47 |
|
Non-interest expense to average assets |
|
2.37 |
|
|
2.45 |
|
|
2.59 |
|
|
2.56 |
|
|
2.45 |
|
2.47 |
|
|
2.50 |
|
Net
overhead ratio (4) |
|
1.22 |
|
|
1.32 |
|
|
0.90 |
|
|
1.12 |
|
|
0.87 |
|
1.15 |
|
|
1.03 |
|
Return on
average assets |
|
0.92 |
|
|
0.92 |
|
|
1.38 |
|
|
0.92 |
|
|
0.99 |
|
1.07 |
|
|
0.63 |
|
Return on
average common equity |
|
10.31 |
|
|
10.24 |
|
|
15.80 |
|
|
10.30 |
|
|
10.66 |
|
12.05 |
|
|
6.56 |
|
Return on
average tangible common equity (non-GAAP) (3) |
|
12.62 |
|
|
12.62 |
|
|
19.49 |
|
|
12.95 |
|
|
13.43 |
|
14.82 |
|
|
8.38 |
|
Average
total assets |
|
$ |
47,192,510 |
|
|
$ |
45,946,751 |
|
|
$ |
44,988,733 |
|
|
$ |
43,810,005 |
|
|
$ |
42,962,844 |
|
$ |
46,050,737 |
|
|
$ |
40,552,517 |
|
Average
total shareholders’ equity |
|
|
4,343,915 |
|
|
|
4,256,778 |
|
|
|
4,164,890 |
|
|
|
4,050,286 |
|
|
|
4,034,902 |
|
4,255,851 |
|
|
3,885,187 |
|
Average
loans to average deposits ratio |
|
83.8 |
% |
|
86.7 |
% |
|
87.1 |
% |
|
87.9 |
% |
|
89.6 |
% |
85.8 |
% |
|
89.1 |
% |
Period-end loans to deposits ratio |
|
83.3 |
|
|
84.8 |
|
|
87.6 |
|
|
86.5 |
|
|
89.7 |
|
|
|
|
Common Share Data at end of period: |
|
|
|
Market
price per common share |
|
$ |
80.37 |
|
|
$ |
75.63 |
|
|
$ |
75.80 |
|
|
$ |
61.09 |
|
|
$ |
40.05 |
|
|
|
|
Book
value per common share |
|
70.19 |
|
|
68.81 |
|
|
67.34 |
|
|
65.24 |
|
|
63.57 |
|
|
|
|
Tangible
book value per common share (non-GAAP) (3) |
|
58.32 |
|
|
56.92 |
|
|
55.42 |
|
|
53.23 |
|
|
51.70 |
|
|
|
|
Common shares outstanding |
|
|
56,956,026 |
|
|
|
57,066,677 |
|
|
|
57,023,273 |
|
|
|
56,769,625 |
|
|
|
57,601,991 |
|
|
|
|
Other
Data at end of period: |
|
|
|
Tier 1
leverage ratio (5) |
|
8.1 |
% |
|
8.2 |
% |
|
8.2 |
% |
|
8.1 |
% |
|
8.2 |
% |
|
|
|
Risk-based capital ratios: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Tier 1
capital ratio (5) |
|
9.9 |
|
|
10.1 |
|
|
10.2 |
|
|
10.0 |
|
|
10.2 |
|
|
|
|
Common
equity tier 1 capital ratio (5) |
|
8.8 |
|
|
9.0 |
|
|
9.0 |
|
|
8.8 |
|
|
9.0 |
|
|
|
|
Total
capital ratio (5) |
|
12.1 |
|
|
12.4 |
|
|
12.6 |
|
|
12.6 |
|
|
12.9 |
|
|
|
|
Allowance
for credit losses (6) |
|
$ |
296,138 |
|
|
$ |
304,121 |
|
|
$ |
321,308 |
|
|
$ |
379,969 |
|
|
$ |
388,971 |
|
|
|
|
Allowance
for loan and unfunded lending-related commitment losses to total
loans |
|
0.89 |
% |
|
0.92 |
% |
|
0.97 |
% |
|
1.18 |
% |
|
1.21 |
% |
|
|
|
Number
of: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Bank subsidiaries |
|
15 |
|
|
15 |
|
|
15 |
|
|
15 |
|
|
15 |
|
|
|
|
Banking offices |
|
172 |
|
|
172 |
|
|
182 |
|
|
181 |
|
|
182 |
|
|
|
|
(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) |
|
|
Sep 30, |
|
Jun 30, |
|
Mar 31, |
|
Dec 31, |
|
Sep 30, |
(In
thousands) |
|
2021 |
|
2021 |
|
2021 |
|
2020 |
|
2020 |
Assets |
|
|
|
|
|
|
|
|
|
|
Cash and
due from banks |
|
$ |
462,244 |
|
|
|
$ |
434,957 |
|
|
|
$ |
426,325 |
|
|
|
$ |
322,415 |
|
|
|
$ |
308,639 |
|
|
Federal
funds sold and securities purchased under resale agreements |
|
55 |
|
|
|
52 |
|
|
|
52 |
|
|
|
59 |
|
|
|
56 |
|
|
Interest-bearing deposits with banks |
|
5,232,315 |
|
|
|
4,707,415 |
|
|
|
3,348,794 |
|
|
|
4,802,527 |
|
|
|
3,825,823 |
|
|
Available-for-sale securities, at fair value |
|
2,373,478 |
|
|
|
2,188,608 |
|
|
|
2,430,749 |
|
|
|
3,055,839 |
|
|
|
2,946,459 |
|
|
Held-to-maturity securities, at amortized cost |
|
2,736,722 |
|
|
|
2,498,232 |
|
|
|
2,166,419 |
|
|
|
579,138 |
|
|
|
560,267 |
|
|
Trading
account securities |
|
1,103 |
|
|
|
2,667 |
|
|
|
951 |
|
|
|
671 |
|
|
|
1,720 |
|
|
Equity
securities with readily determinable fair value |
|
88,193 |
|
|
|
86,316 |
|
|
|
90,338 |
|
|
|
90,862 |
|
|
|
54,398 |
|
|
Federal
Home Loan Bank and Federal Reserve Bank stock |
|
135,408 |
|
|
|
136,625 |
|
|
|
135,881 |
|
|
|
135,588 |
|
|
|
135,568 |
|
|
Brokerage
customer receivables |
|
26,378 |
|
|
|
23,093 |
|
|
|
19,056 |
|
|
|
17,436 |
|
|
|
16,818 |
|
|
Mortgage
loans held-for-sale |
|
925,312 |
|
|
|
984,994 |
|
|
|
1,260,193 |
|
|
|
1,272,090 |
|
|
|
959,671 |
|
|
Loans,
net of unearned income |
|
33,264,043 |
|
|
|
32,911,187 |
|
|
|
33,171,233 |
|
|
|
32,079,073 |
|
|
|
32,135,555 |
|
|
Allowance
for loan losses |
|
(248,612 |
) |
|
|
(261,089 |
) |
|
|
(277,709 |
) |
|
|
(319,374 |
) |
|
|
(325,959 |
) |
|
Net loans |
|
33,015,431 |
|
|
|
32,650,098 |
|
|
|
32,893,524 |
|
|
|
31,759,699 |
|
|
|
31,809,596 |
|
|
Premises,
software and equipment, net |
|
748,872 |
|
|
|
752,375 |
|
|
|
760,522 |
|
|
|
768,808 |
|
|
|
774,288 |
|
|
Lease
investments, net |
|
243,933 |
|
|
|
219,023 |
|
|
|
238,984 |
|
|
|
242,434 |
|
|
|
230,373 |
|
|
Accrued
interest receivable and other assets |
|
1,166,917 |
|
|
|
1,185,811 |
|
|
|
1,230,362 |
|
|
|
1,351,455 |
|
|
|
1,424,728 |
|
|
Trade
date securities receivable |
|
— |
|
|
|
189,851 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
Goodwill |
|
645,792 |
|
|
|
646,336 |
|
|
|
646,017 |
|
|
|
645,707 |
|
|
|
644,644 |
|
|
Other
intangible assets |
|
30,118 |
|
|
|
31,997 |
|
|
|
34,035 |
|
|
|
36,040 |
|
|
|
38,670 |
|
|
Total assets |
|
$ |
47,832,271 |
|
|
|
$ |
46,738,450 |
|
|
|
$ |
45,682,202 |
|
|
|
$ |
45,080,768 |
|
|
|
$ |
43,731,718 |
|
|
Liabilities and Shareholders’ Equity |
|
|
|
|
|
|
|
|
|
|
Deposits: |
|
|
|
|
|
|
|
|
|
|
Non-interest-bearing |
|
$ |
13,255,417 |
|
|
|
$ |
12,796,110 |
|
|
|
$ |
12,297,337 |
|
|
|
$ |
11,748,455 |
|
|
|
$ |
10,409,747 |
|
|
Interest-bearing |
|
26,697,141 |
|
|
|
26,008,506 |
|
|
|
25,575,315 |
|
|
|
25,344,196 |
|
|
|
25,434,675 |
|
|
Total deposits |
|
39,952,558 |
|
|
|
38,804,616 |
|
|
|
37,872,652 |
|
|
|
37,092,651 |
|
|
|
35,844,422 |
|
|
Federal
Home Loan Bank advances |
|
1,241,071 |
|
|
|
1,241,071 |
|
|
|
1,228,436 |
|
|
|
1,228,429 |
|
|
|
1,228,422 |
|
|
Other
borrowings |
|
504,527 |
|
|
|
518,493 |
|
|
|
516,877 |
|
|
|
518,928 |
|
|
|
507,395 |
|
|
Subordinated notes |
|
436,811 |
|
|
|
436,719 |
|
|
|
436,595 |
|
|
|
436,506 |
|
|
|
436,385 |
|
|
Junior
subordinated debentures |
|
253,566 |
|
|
|
253,566 |
|
|
|
253,566 |
|
|
|
253,566 |
|
|
|
253,566 |
|
|
Trade
date securities payable |
|
1,348 |
|
|
|
— |
|
|
|
995 |
|
|
|
200,907 |
|
|
|
— |
|
|
Accrued
interest payable and other liabilities |
|
1,032,073 |
|
|
|
1,144,974 |
|
|
|
1,120,570 |
|
|
|
1,233,786 |
|
|
|
1,387,439 |
|
|
Total liabilities |
|
43,421,954 |
|
|
|
42,399,439 |
|
|
|
41,429,691 |
|
|
|
40,964,773 |
|
|
|
39,657,629 |
|
|
Shareholders’ Equity: |
|
|
|
|
|
|
|
|
|
|
Preferred stock |
|
412,500 |
|
|
|
412,500 |
|
|
|
412,500 |
|
|
|
412,500 |
|
|
|
412,500 |
|
|
Common stock |
|
58,794 |
|
|
|
58,770 |
|
|
|
58,727 |
|
|
|
58,473 |
|
|
|
58,323 |
|
|
Surplus |
|
1,674,062 |
|
|
|
1,669,002 |
|
|
|
1,663,008 |
|
|
|
1,649,990 |
|
|
|
1,647,049 |
|
|
Treasury stock |
|
(109,903 |
) |
|
|
(100,363 |
) |
|
|
(100,363 |
) |
|
|
(100,363 |
) |
|
|
(44,891 |
) |
|
Retained earnings |
|
2,373,447 |
|
|
|
2,288,969 |
|
|
|
2,208,535 |
|
|
|
2,080,013 |
|
|
|
2,001,949 |
|
|
Accumulated other comprehensive income (loss) |
|
1,417 |
|
|
|
10,133 |
|
|
|
10,104 |
|
|
|
15,382 |
|
|
|
(841 |
) |
|
Total shareholders’ equity |
|
4,410,317 |
|
|
|
4,339,011 |
|
|
|
4,252,511 |
|
|
|
4,115,995 |
|
|
|
4,074,089 |
|
|
Total liabilities and shareholders’ equity |
|
$ |
47,832,271 |
|
|
|
$ |
46,738,450 |
|
|
|
$ |
45,682,202 |
|
|
|
$ |
45,080,768 |
|
|
|
$ |
43,731,718 |
|
|
WINTRUST FINANCIAL CORPORATION AND
SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED)
|
Three Months Ended |
Nine Months Ended |
(In
thousands, except per share data) |
Sep 30,
2021 |
|
Jun 30,
2021 |
|
Mar 31,
2021 |
|
Dec 31,
2020 |
|
Sep 30,
2020 |
Sep 30,
2021 |
|
Sep 30,
2020 |
Interest income |
|
|
|
|
|
|
|
|
|
|
|
|
Interest and fees on loans |
$ |
285,587 |
|
|
|
$ |
284,701 |
|
|
|
$ |
274,100 |
|
|
|
$ |
280,185 |
|
|
|
$ |
280,479 |
|
|
$ |
844,388 |
|
|
|
$ |
877,064 |
|
|
Mortgage loans held-for-sale |
7,716 |
|
|
|
8,183 |
|
|
|
9,036 |
|
|
|
6,357 |
|
|
|
5,791 |
|
|
24,935 |
|
|
|
13,720 |
|
|
Interest-bearing deposits with banks |
2,000 |
|
|
|
1,153 |
|
|
|
1,199 |
|
|
|
1,294 |
|
|
|
1,181 |
|
|
4,352 |
|
|
|
7,259 |
|
|
Federal funds sold and securities purchased under resale
agreements |
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
— |
|
|
|
102 |
|
|
Investment securities |
25,189 |
|
|
|
23,623 |
|
|
|
19,264 |
|
|
|
18,243 |
|
|
|
21,819 |
|
|
68,076 |
|
|
|
81,391 |
|
|
Trading account securities |
3 |
|
|
|
1 |
|
|
|
2 |
|
|
|
11 |
|
|
|
6 |
|
|
6 |
|
|
|
26 |
|
|
Federal Home Loan Bank and Federal Reserve Bank stock |
1,777 |
|
|
|
1,769 |
|
|
|
1,745 |
|
|
|
1,775 |
|
|
|
1,774 |
|
|
5,291 |
|
|
|
5,116 |
|
|
Brokerage customer receivables |
185 |
|
|
|
149 |
|
|
|
123 |
|
|
|
116 |
|
|
|
106 |
|
|
457 |
|
|
|
361 |
|
|
Total interest income |
322,457 |
|
|
|
319,579 |
|
|
|
305,469 |
|
|
|
307,981 |
|
|
|
311,156 |
|
|
947,505 |
|
|
|
985,039 |
|
|
Interest expense |
|
|
|
|
|
|
|
|
|
|
|
|
Interest on deposits |
19,305 |
|
|
|
24,298 |
|
|
|
27,944 |
|
|
|
32,602 |
|
|
|
39,084 |
|
|
71,547 |
|
|
|
156,576 |
|
|
Interest on Federal Home Loan Bank advances |
4,931 |
|
|
|
4,887 |
|
|
|
4,840 |
|
|
|
4,952 |
|
|
|
4,947 |
|
|
14,658 |
|
|
|
13,241 |
|
|
Interest on other borrowings |
2,501 |
|
|
|
2,568 |
|
|
|
2,609 |
|
|
|
2,779 |
|
|
|
3,012 |
|
|
7,678 |
|
|
|
9,994 |
|
|
Interest on subordinated notes |
5,480 |
|
|
|
5,512 |
|
|
|
5,477 |
|
|
|
5,509 |
|
|
|
5,474 |
|
|
16,469 |
|
|
|
16,452 |
|
|
Interest on junior subordinated debentures |
2,744 |
|
|
|
2,724 |
|
|
|
2,704 |
|
|
|
2,742 |
|
|
|
2,703 |
|
|
8,172 |
|
|
|
8,266 |
|
|
Total interest expense |
34,961 |
|
|
|
39,989 |
|
|
|
43,574 |
|
|
|
48,584 |
|
|
|
55,220 |
|
|
118,524 |
|
|
|
204,529 |
|
|
Net interest income |
287,496 |
|
|
|
279,590 |
|
|
|
261,895 |
|
|
|
259,397 |
|
|
|
255,936 |
|
|
828,981 |
|
|
|
780,510 |
|
|
Provision for credit losses |
(7,916 |
) |
|
|
(15,299 |
) |
|
|
(45,347 |
) |
|
|
1,180 |
|
|
|
25,026 |
|
|
(68,562 |
) |
|
|
213,040 |
|
|
Net interest income after provision for credit losses |
295,412 |
|
|
|
294,889 |
|
|
|
307,242 |
|
|
|
258,217 |
|
|
|
230,910 |
|
|
897,543 |
|
|
|
567,470 |
|
|
Non-interest income |
|
|
|
|
|
|
|
|
|
|
|
|
Wealth management |
31,531 |
|
|
|
30,690 |
|
|
|
29,309 |
|
|
|
26,802 |
|
|
|
24,957 |
|
|
91,530 |
|
|
|
73,534 |
|
|
Mortgage banking |
55,794 |
|
|
|
50,584 |
|
|
|
113,494 |
|
|
|
86,819 |
|
|
|
108,544 |
|
|
219,872 |
|
|
|
259,194 |
|
|
Service charges on deposit accounts |
14,149 |
|
|
|
13,249 |
|
|
|
12,036 |
|
|
|
11,841 |
|
|
|
11,497 |
|
|
39,434 |
|
|
|
33,182 |
|
|
(Losses) gains on investment securities, net |
(2,431 |
) |
|
|
1,285 |
|
|
|
1,154 |
|
|
|
1,214 |
|
|
|
411 |
|
|
8 |
|
|
|
(3,140 |
) |
|
Fees from covered call options |
1,157 |
|
|
|
1,388 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
2,545 |
|
|
|
2,292 |
|
|
Trading gains (losses), net |
58 |
|
|
|
(438 |
) |
|
|
419 |
|
|
|
(102 |
) |
|
|
183 |
|
|
39 |
|
|
|
(902 |
) |
|
Operating lease income, net |
12,807 |
|
|
|
12,240 |
|
|
|
14,440 |
|
|
|
12,118 |
|
|
|
11,717 |
|
|
39,487 |
|
|
|
35,486 |
|
|
Other |
23,409 |
|
|
|
20,375 |
|
|
|
15,654 |
|
|
|
19,669 |
|
|
|
13,284 |
|
|
59,438 |
|
|
|
46,182 |
|
|
Total non-interest income |
136,474 |
|
|
|
129,373 |
|
|
|
186,506 |
|
|
|
158,361 |
|
|
|
170,593 |
|
|
452,353 |
|
|
|
445,828 |
|
|
Non-interest expense |
|
|
|
|
|
|
|
|
|
|
|
|
Salaries and employee benefits |
170,912 |
|
|
|
172,817 |
|
|
|
180,809 |
|
|
|
171,116 |
|
|
|
164,042 |
|
|
524,538 |
|
|
|
454,960 |
|
|
Software and equipment |
22,029 |
|
|
|
20,866 |
|
|
|
20,912 |
|
|
|
20,565 |
|
|
|
17,251 |
|
|
63,807 |
|
|
|
47,931 |
|
|
Operating lease equipment depreciation |
10,013 |
|
|
|
9,949 |
|
|
|
10,771 |
|
|
|
9,938 |
|
|
|
9,425 |
|
|
30,733 |
|
|
|
27,977 |
|
|
Occupancy, net |
18,158 |
|
|
|
17,687 |
|
|
|
19,996 |
|
|
|
19,687 |
|
|
|
15,830 |
|
|
55,841 |
|
|
|
50,270 |
|
|
Data processing |
7,104 |
|
|
|
6,920 |
|
|
|
6,048 |
|
|
|
5,728 |
|
|
|
5,689 |
|
|
20,072 |
|
|
|
24,468 |
|
|
Advertising and marketing |
13,443 |
|
|
|
11,305 |
|
|
|
8,546 |
|
|
|
9,850 |
|
|
|
7,880 |
|
|
33,294 |
|
|
|
26,446 |
|
|
Professional fees |
7,052 |
|
|
|
7,304 |
|
|
|
7,587 |
|
|
|
6,530 |
|
|
|
6,488 |
|
|
21,943 |
|
|
|
20,896 |
|
|
Amortization of other intangible assets |
1,877 |
|
|
|
2,039 |
|
|
|
2,007 |
|
|
|
2,634 |
|
|
|
2,701 |
|
|
5,923 |
|
|
|
8,384 |
|
|
FDIC insurance |
6,750 |
|
|
|
6,405 |
|
|
|
6,558 |
|
|
|
7,016 |
|
|
|
6,772 |
|
|
19,713 |
|
|
|
17,988 |
|
|
OREO expense, net |
(1,531 |
) |
|
|
769 |
|
|
|
(251 |
) |
|
|
(114 |
) |
|
|
(168 |
) |
|
(1,013 |
) |
|
|
(807 |
) |
|
Other |
26,337 |
|
|
|
24,051 |
|
|
|
23,906 |
|
|
|
28,917 |
|
|
|
28,309 |
|
|
74,294 |
|
|
|
79,715 |
|
|
Total non-interest expense |
282,144 |
|
|
|
280,112 |
|
|
|
286,889 |
|
|
|
281,867 |
|
|
|
264,219 |
|
|
849,145 |
|
|
|
758,228 |
|
|
Income before taxes |
149,742 |
|
|
|
144,150 |
|
|
|
206,859 |
|
|
|
134,711 |
|
|
|
137,284 |
|
|
500,751 |
|
|
|
255,070 |
|
|
Income tax expense |
40,605 |
|
|
|
39,041 |
|
|
|
53,711 |
|
|
|
33,507 |
|
|
|
29,969 |
|
|
133,357 |
|
|
|
63,284 |
|
|
Net income |
$ |
109,137 |
|
|
|
$ |
105,109 |
|
|
|
$ |
153,148 |
|
|
|
$ |
101,204 |
|
|
|
$ |
107,315 |
|
|
$ |
367,394 |
|
|
|
$ |
191,786 |
|
|
Preferred stock dividends |
6,991 |
|
|
|
6,991 |
|
|
|
6,991 |
|
|
|
6,991 |
|
|
|
10,286 |
|
|
20,973 |
|
|
|
14,386 |
|
|
Net income applicable to common shares |
$ |
102,146 |
|
|
|
$ |
98,118 |
|
|
|
$ |
146,157 |
|
|
|
$ |
94,213 |
|
|
|
$ |
97,029 |
|
|
$ |
346,421 |
|
|
|
$ |
177,400 |
|
|
Net income per common share - Basic |
$ |
1.79 |
|
|
|
$ |
1.72 |
|
|
|
$ |
2.57 |
|
|
|
$ |
1.64 |
|
|
|
$ |
1.68 |
|
|
$ |
6.08 |
|
|
|
$ |
3.08 |
|
|
Net income per common share - Diluted |
$ |
1.77 |
|
|
|
$ |
1.70 |
|
|
|
$ |
2.54 |
|
|
|
$ |
1.63 |
|
|
|
$ |
1.67 |
|
|
$ |
6.00 |
|
|
|
$ |
3.06 |
|
|
Cash dividends declared per common share |
$ |
0.31 |
|
|
|
$ |
0.31 |
|
|
|
$ |
0.31 |
|
|
|
$ |
0.28 |
|
|
|
$ |
0.28 |
|
|
$ |
0.93 |
|
|
|
$ |
0.84 |
|
|
Weighted average common shares outstanding |
|
57,000 |
|
|
|
|
57,049 |
|
|
|
|
56,904 |
|
|
|
|
57,309 |
|
|
|
|
57,597 |
|
|
|
56,985 |
|
|
|
|
57,595 |
|
|
Dilutive potential common shares |
753 |
|
|
|
726 |
|
|
|
681 |
|
|
|
588 |
|
|
|
449 |
|
|
728 |
|
|
|
469 |
|
|
Average common shares and dilutive common shares |
57,753 |
|
|
|
57,775 |
|
|
|
57,585 |
|
|
|
57,897 |
|
|
|
58,046 |
|
|
57,713 |
|
|
|
58,064 |
|
|
TABLE 1: LOAN PORTFOLIO MIX AND GROWTH
RATES
|
|
|
|
|
|
|
|
|
|
% Growth From (2) |
(Dollars in thousands) |
Sep 30,
2021 |
|
Jun 30,
2021 |
|
Mar 31,
2021 |
|
Dec 31,
2020 |
|
Sep 30,
2020 |
Dec 31,
2020 (1) |
|
Sep 30,
2020 |
Balance: |
|
|
|
|
|
|
|
|
|
|
|
|
Mortgage loans held-for-sale, excluding early buy-out exercised
loans guaranteed by U.S. Government Agencies |
$ |
570,663 |
|
|
$ |
633,006 |
|
|
$ |
890,749 |
|
|
$ |
927,307 |
|
|
$ |
862,924 |
|
(51 |
) |
% |
|
(34 |
) |
% |
Mortgage loans held-for-sale, early buy-out exercised loans
guaranteed by U.S. Government Agencies |
354,649 |
|
|
351,988 |
|
|
369,444 |
|
|
344,783 |
|
|
96,747 |
|
4 |
|
|
|
267 |
|
|
Total mortgage loans held-for-sale |
$ |
925,312 |
|
|
$ |
984,994 |
|
|
$ |
1,260,193 |
|
|
$ |
1,272,090 |
|
|
$ |
959,671 |
|
(36 |
) |
% |
|
(4 |
) |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
Core loans: |
|
|
|
|
|
|
|
|
|
|
|
|
Commercial |
|
|
|
|
|
|
|
|
|
|
|
|
Commercial and industrial |
$ |
4,953,769 |
|
|
$ |
4,650,607 |
|
|
$ |
4,630,795 |
|
|
$ |
4,675,594 |
|
|
$ |
4,555,920 |
|
8 |
|
% |
|
9 |
|
% |
Asset-based lending |
1,066,376 |
|
|
892,109 |
|
|
720,772 |
|
|
721,666 |
|
|
707,365 |
|
64 |
|
|
|
51 |
|
|
Municipal |
524,192 |
|
|
511,094 |
|
|
493,417 |
|
|
474,103 |
|
|
482,567 |
|
14 |
|
|
|
9 |
|
|
Leases |
1,365,281 |
|
|
1,357,036 |
|
|
1,290,778 |
|
|
1,288,374 |
|
|
1,215,239 |
|
8 |
|
|
|
12 |
|
|
Commercial real estate |
|
|
|
|
|
|
|
|
|
|
|
|
Residential construction |
49,754 |
|
|
55,735 |
|
|
72,058 |
|
|
89,389 |
|
|
101,187 |
|
(59 |
) |
|
|
(51 |
) |
|
Commercial construction |
1,038,034 |
|
|
1,090,447 |
|
|
1,040,631 |
|
|
1,041,729 |
|
|
1,005,708 |
|
— |
|
|
|
3 |
|
|
Land |
255,927 |
|
|
239,067 |
|
|
240,635 |
|
|
240,684 |
|
|
226,254 |
|
8 |
|
|
|
13 |
|
|
Office |
1,169,466 |
|
|
1,098,386 |
|
|
1,131,472 |
|
|
1,136,844 |
|
|
1,163,790 |
|
4 |
|
|
|
— |
|
|
Industrial |
1,324,612 |
|
|
1,263,614 |
|
|
1,152,522 |
|
|
1,129,433 |
|
|
1,117,702 |
|
23 |
|
|
|
19 |
|
|
Retail |
1,237,261 |
|
|
1,217,540 |
|
|
1,198,025 |
|
|
1,224,403 |
|
|
1,175,819 |
|
1 |
|
|
|
5 |
|
|
Multi-family |
1,888,817 |
|
|
1,805,118 |
|
|
1,739,521 |
|
|
1,649,801 |
|
|
1,599,651 |
|
19 |
|
|
|
18 |
|
|
Mixed use and other |
1,921,843 |
|
|
1,908,462 |
|
|
1,969,915 |
|
|
1,981,849 |
|
|
2,033,031 |
|
(4 |
) |
|
|
(5 |
) |
|
Home equity |
347,662 |
|
|
369,806 |
|
|
390,253 |
|
|
425,263 |
|
|
446,274 |
|
(24 |
) |
|
|
(22 |
) |
|
Residential real estate |
|
|
|
|
|
|
|
|
|
|
|
|
Residential real estate loans for investment |
1,528,889 |
|
|
1,485,952 |
|
|
1,376,465 |
|
|
1,214,744 |
|
|
1,143,908 |
|
35 |
|
|
|
34 |
|
|
Residential mortgage loans, early buy-out eligible loans guaranteed
by U.S. Government Agencies |
18,847 |
|
|
44,333 |
|
|
45,508 |
|
|
44,854 |
|
|
240,902 |
|
(78 |
) |
|
|
(92 |
) |
|
Total core loans |
$ |
18,690,730 |
|
|
$ |
17,989,306 |
|
|
$ |
17,492,767 |
|
|
$ |
17,338,730 |
|
|
$ |
17,215,317 |
|
10 |
|
% |
|
9 |
|
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
Niche loans: |
|
|
|
|
|
|
|
|
|
|
|
|
Commercial |
|
|
|
|
|
|
|
|
|
|
|
|
Franchise |
$ |
1,176,569 |
|
|
$ |
1,060,468 |
|
|
$ |
1,128,493 |
|
|
$ |
1,023,027 |
|
|
$ |
964,150 |
|
20 |
|
% |
|
22 |
|
% |
Mortgage warehouse lines of credit |
468,162 |
|
|
529,867 |
|
|
587,868 |
|
|
567,389 |
|
|
503,371 |
|
(23 |
) |
|
|
(7 |
) |
|
Community Advantage - homeowners association |
291,153 |
|
|
287,689 |
|
|
272,222 |
|
|
267,374 |
|
|
254,963 |
|
12 |
|
|
|
14 |
|
|
Insurance agency lending |
260,482 |
|
|
273,999 |
|
|
290,880 |
|
|
222,519 |
|
|
214,411 |
|
23 |
|
|
|
21 |
|
|
Premium Finance receivables |
|
|
|
|
|
|
|
|
|
|
|
|
U.S. commercial insurance |
3,921,289 |
|
|
3,805,504 |
|
|
3,342,730 |
|
|
3,438,087 |
|
|
3,494,155 |
|
19 |
|
|
|
12 |
|
|
Canada commercial insurance |
695,688 |
|
|
716,367 |
|
|
615,813 |
|
|
616,402 |
|
|
565,989 |
|
17 |
|
|
|
23 |
|
|
Life insurance |
6,655,453 |
|
|
6,359,556 |
|
|
6,111,495 |
|
|
5,857,436 |
|
|
5,488,832 |
|
18 |
|
|
|
21 |
|
|
Consumer and other |
22,529 |
|
|
9,024 |
|
|
35,983 |
|
|
32,188 |
|
|
55,354 |
|
(40 |
) |
|
|
(59 |
) |
|
Total niche loans |
$ |
13,491,325 |
|
|
$ |
13,042,474 |
|
|
$ |
12,385,484 |
|
|
$ |
12,024,422 |
|
|
$ |
11,541,225 |
|
16 |
|
% |
|
17 |
|
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial PPP loans: |
|
|
|
|
|
|
|
|
|
|
|
|
Originated in 2020 |
$ |
172,849 |
|
|
$ |
656,502 |
|
|
$ |
2,049,342 |
|
|
$ |
2,715,921 |
|
|
$ |
3,379,013 |
|
NM |
|
|
|
(95 |
) |
% |
Originated in 2021 |
909,139 |
|
|
1,222,905 |
|
|
1,243,640 |
|
|
— |
|
|
— |
|
100 |
|
|
|
100 |
|
|
Total commercial PPP loans |
$ |
1,081,988 |
|
|
$ |
1,879,407 |
|
|
$ |
3,292,982 |
|
|
$ |
2,715,921 |
|
|
$ |
3,379,013 |
|
(80 |
) |
% |
|
(68 |
) |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
Total loans, net of unearned income |
$ |
33,264,043 |
|
|
$ |
32,911,187 |
|
|
$ |
33,171,233 |
|
|
$ |
32,079,073 |
|
|
$ |
32,135,555 |
|
5 |
|
% |
|
4 |
|
% |
(1) Annualized.
(2) NM - Not meaningful.
TABLE 2: DEPOSIT PORTFOLIO MIX AND GROWTH
RATES
|
|
|
|
|
|
|
|
|
|
|
|
|
|
% Growth From |
(Dollars in thousands) |
Sep 30,
2021 |
|
|
Jun 30,
2021 |
|
|
Mar 31,
2021 |
|
|
Dec 31,
2020 |
|
|
Sep 30,
2020 |
Dec 31,
2020 (1) |
|
Sep 30,
2020 |
Balance: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-interest-bearing |
$ |
13,255,417 |
|
|
$ |
12,796,110 |
|
|
$ |
12,297,337 |
|
|
$ |
11,748,455 |
|
|
$ |
10,409,747 |
|
17 |
|
% |
|
27 |
|
% |
NOW and interest-bearing demand deposits |
3,769,825 |
|
|
3,625,538 |
|
|
3,562,312 |
|
|
3,349,021 |
|
|
|
3,294,071 |
|
17 |
|
|
|
14 |
|
|
Wealth management deposits (2) |
4,177,820 |
|
|
4,399,303 |
|
|
4,274,527 |
|
|
4,138,712 |
|
|
|
4,235,583 |
|
1 |
|
|
|
(1 |
) |
|
Money market |
10,757,654 |
|
|
9,843,390 |
|
|
9,236,434 |
|
|
9,348,806 |
|
|
|
9,423,653 |
|
20 |
|
|
|
14 |
|
|
Savings |
3,861,296 |
|
|
3,776,400 |
|
|
3,690,892 |
|
|
3,531,029 |
|
|
|
3,415,073 |
|
13 |
|
|
|
13 |
|
|
Time certificates of deposit |
4,130,546 |
|
|
4,363,875 |
|
|
4,811,150 |
|
|
4,976,628 |
|
|
|
5,066,295 |
|
(23 |
) |
|
|
(18 |
) |
|
Total deposits |
$ |
39,952,558 |
|
|
$ |
38,804,616 |
|
|
$ |
37,872,652 |
|
|
$ |
37,092,651 |
|
|
$ |
35,844,422 |
|
10 |
|
% |
|
11 |
|
% |
Mix: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-interest-bearing |
33 |
% |
|
33 |
% |
|
32 |
% |
|
32 |
% |
|
|
29 |
% |
|
|
|
NOW and interest-bearing demand deposits |
9 |
|
|
9 |
|
|
9 |
|
|
9 |
|
|
|
9 |
|
|
|
|
Wealth management deposits (2) |
11 |
|
|
11 |
|
|
11 |
|
|
11 |
|
|
|
12 |
|
|
|
|
Money market |
27 |
|
|
25 |
|
|
25 |
|
|
25 |
|
|
|
26 |
|
|
|
|
Savings |
10 |
|
|
10 |
|
|
10 |
|
|
10 |
|
|
|
10 |
|
|
|
|
Time certificates of deposit |
10 |
|
|
12 |
|
|
13 |
|
|
13 |
|
|
|
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 September 30, 2021
(Dollars in thousands) |
|
Total Time
Certificates of
Deposit |
|
Weighted-Average
Rate of Maturing
Time Certificates
of Deposit (1) |
1-3 months |
|
$ |
918,517 |
|
|
0.99 |
% |
4-6 months |
|
780,345 |
|
|
0.57 |
|
7-9 months |
|
628,839 |
|
|
0.41 |
|
10-12 months |
|
602,854 |
|
|
0.42 |
|
13-18 months |
|
621,320 |
|
|
0.56 |
|
19-24 months |
|
272,526 |
|
|
0.48 |
|
24+ months |
|
306,145 |
|
|
0.55 |
|
Total |
|
$ |
4,130,546 |
|
|
0.61 |
% |
(1) Weighted-average rate excludes the
impact of purchase accounting fair value adjustments.
TABLE 4: QUARTERLY AVERAGE BALANCES
|
|
Average Balance for three months ended, |
|
|
Sep 30, |
|
Jun 30, |
|
Mar 31, |
|
Dec 31, |
|
Sep 30, |
(In
thousands) |
|
2021 |
|
2021 |
|
2021 |
|
2020 |
|
2020 |
Interest-bearing deposits with banks and cash equivalents
(1) |
|
$ |
5,112,720 |
|
|
|
$ |
3,844,355 |
|
|
|
$ |
4,230,886 |
|
|
|
$ |
4,381,040 |
|
|
|
$ |
3,411,164 |
|
|
Investment securities (2) |
|
5,065,593 |
|
|
|
4,771,403 |
|
|
|
3,944,676 |
|
|
|
3,534,594 |
|
|
|
3,789,422 |
|
|
FHLB and FRB stock |
|
136,001 |
|
|
|
136,324 |
|
|
|
135,758 |
|
|
|
135,569 |
|
|
|
135,567 |
|
|
Liquidity management assets (3) |
|
10,314,314 |
|
|
|
8,752,082 |
|
|
|
8,311,320 |
|
|
|
8,051,203 |
|
|
|
7,336,153 |
|
|
Other earning assets (3)(4) |
|
28,238 |
|
|
|
23,354 |
|
|
|
20,370 |
|
|
|
18,716 |
|
|
|
16,656 |
|
|
Mortgage loans held-for-sale |
|
871,824 |
|
|
|
991,011 |
|
|
|
1,151,848 |
|
|
|
893,395 |
|
|
|
822,908 |
|
|
Loans, net of unearned income (3)(5) |
|
32,985,445 |
|
|
|
33,085,174 |
|
|
|
32,442,927 |
|
|
|
31,783,279 |
|
|
|
31,634,608 |
|
|
Total earning assets (3) |
|
44,199,821 |
|
|
|
42,851,621 |
|
|
|
41,926,465 |
|
|
|
40,746,593 |
|
|
|
39,810,325 |
|
|
Allowance for loan and investment security losses |
|
(269,963 |
) |
|
|
(285,686 |
) |
|
|
(327,080 |
) |
|
|
(336,139 |
) |
|
|
(321,732 |
) |
|
Cash and due from banks |
|
425,000 |
|
|
|
470,566 |
|
|
|
366,413 |
|
|
|
344,536 |
|
|
|
345,438 |
|
|
Other assets |
|
2,837,652 |
|
|
|
2,910,250 |
|
|
|
3,022,935 |
|
|
|
3,055,015 |
|
|
|
3,128,813 |
|
|
Total assets |
|
$ |
47,192,510 |
|
|
|
$ |
45,946,751 |
|
|
|
$ |
44,988,733 |
|
|
|
$ |
43,810,005 |
|
|
|
$ |
42,962,844 |
|
|
|
|
|
|
|
|
|
|
|
|
|
NOW and interest-bearing demand deposits |
|
$ |
3,757,677 |
|
|
|
$ |
3,626,424 |
|
|
|
$ |
3,493,451 |
|
|
|
$ |
3,320,527 |
|
|
|
$ |
3,435,089 |
|
|
Wealth management deposits |
|
4,672,402 |
|
|
|
4,369,998 |
|
|
|
4,156,398 |
|
|
|
4,066,948 |
|
|
|
4,239,300 |
|
|
Money market accounts |
|
10,027,424 |
|
|
|
9,547,167 |
|
|
|
9,335,920 |
|
|
|
9,435,344 |
|
|
|
9,332,668 |
|
|
Savings accounts |
|
3,851,523 |
|
|
|
3,728,271 |
|
|
|
3,587,566 |
|
|
|
3,413,388 |
|
|
|
3,419,586 |
|
|
Time deposits |
|
4,236,317 |
|
|
|
4,632,796 |
|
|
|
4,875,392 |
|
|
|
5,043,558 |
|
|
|
4,900,839 |
|
|
Interest-bearing deposits |
|
26,545,343 |
|
|
|
25,904,656 |
|
|
|
25,448,727 |
|
|
|
25,279,765 |
|
|
|
25,327,482 |
|
|
Federal Home Loan Bank advances |
|
1,241,073 |
|
|
|
1,235,142 |
|
|
|
1,228,433 |
|
|
|
1,228,425 |
|
|
|
1,228,421 |
|
|
Other borrowings |
|
512,785 |
|
|
|
525,924 |
|
|
|
518,188 |
|
|
|
510,725 |
|
|
|
512,787 |
|
|
Subordinated notes |
|
436,746 |
|
|
|
436,644 |
|
|
|
436,532 |
|
|
|
436,433 |
|
|
|
436,323 |
|
|
Junior subordinated debentures |
|
253,566 |
|
|
|
253,566 |
|
|
|
253,566 |
|
|
|
253,566 |
|
|
|
253,566 |
|
|
Total interest-bearing liabilities |
|
28,989,513 |
|
|
|
28,355,932 |
|
|
|
27,885,446 |
|
|
|
27,708,914 |
|
|
|
27,758,579 |
|
|
Non-interest-bearing deposits |
|
12,834,084 |
|
|
|
12,246,274 |
|
|
|
11,811,194 |
|
|
|
10,874,912 |
|
|
|
9,988,769 |
|
|
Other liabilities |
|
1,024,998 |
|
|
|
1,087,767 |
|
|
|
1,127,203 |
|
|
|
1,175,893 |
|
|
|
1,180,594 |
|
|
Equity |
|
4,343,915 |
|
|
|
4,256,778 |
|
|
|
4,164,890 |
|
|
|
4,050,286 |
|
|
|
4,034,902 |
|
|
Total liabilities and shareholders’ equity |
|
$ |
47,192,510 |
|
|
|
$ |
45,946,751 |
|
|
|
$ |
44,988,733 |
|
|
|
$ |
43,810,005 |
|
|
|
$ |
42,962,844 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Net free funds/contribution (6) |
|
$ |
15,210,308 |
|
|
|
$ |
14,495,689 |
|
|
|
$ |
14,041,019 |
|
|
|
$ |
13,037,679 |
|
|
|
$ |
12,051,746 |
|
|
(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, |
|
|
Sep 30, |
|
Jun 30, |
|
Mar 31, |
|
Dec 31, |
|
Sep 30, |
(In
thousands) |
|
2021 |
|
2021 |
|
2021 |
|
2020 |
|
2020 |
Interest income: |
|
|
|
|
|
|
|
|
|
|
Interest-bearing deposits with banks and cash equivalents |
|
$ |
2,000 |
|
|
|
$ |
1,153 |
|
|
|
$ |
1,199 |
|
|
|
$ |
1,294 |
|
|
|
$ |
1,181 |
|
|
Investment securities |
|
25,681 |
|
|
|
24,117 |
|
|
|
19,764 |
|
|
|
18,773 |
|
|
|
22,365 |
|
|
FHLB and FRB stock |
|
1,777 |
|
|
|
1,769 |
|
|
|
1,745 |
|
|
|
1,775 |
|
|
|
1,774 |
|
|
Liquidity management assets (1) |
|
29,458 |
|
|
|
27,039 |
|
|
|
22,708 |
|
|
|
21,842 |
|
|
|
25,320 |
|
|
Other earning assets (1) |
|
188 |
|
|
|
150 |
|
|
|
125 |
|
|
|
130 |
|
|
|
113 |
|
|
Mortgage loans held-for-sale |
|
7,716 |
|
|
|
8,183 |
|
|
|
9,036 |
|
|
|
6,357 |
|
|
|
5,791 |
|
|
Loans, net of unearned income (1) |
|
285,998 |
|
|
|
285,116 |
|
|
|
274,484 |
|
|
|
280,509 |
|
|
|
280,960 |
|
|
Total interest income |
|
$ |
323,360 |
|
|
|
$ |
320,488 |
|
|
|
$ |
306,353 |
|
|
|
$ |
308,838 |
|
|
|
$ |
312,184 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest expense: |
|
|
|
|
|
|
|
|
|
|
NOW and interest-bearing demand deposits |
|
$ |
767 |
|
|
|
$ |
736 |
|
|
|
$ |
901 |
|
|
|
$ |
1,074 |
|
|
|
$ |
1,342 |
|
|
Wealth management deposits |
|
7,888 |
|
|
|
7,686 |
|
|
|
7,351 |
|
|
|
7,436 |
|
|
|
7,662 |
|
|
Money market accounts |
|
2,342 |
|
|
|
2,795 |
|
|
|
2,865 |
|
|
|
3,740 |
|
|
|
7,245 |
|
|
Savings accounts |
|
406 |
|
|
|
402 |
|
|
|
430 |
|
|
|
773 |
|
|
|
2,104 |
|
|
Time deposits |
|
7,902 |
|
|
|
12,679 |
|
|
|
16,397 |
|
|
|
19,579 |
|
|
|
20,731 |
|
|
Interest-bearing deposits |
|
19,305 |
|
|
|
24,298 |
|
|
|
27,944 |
|
|
|
32,602 |
|
|
|
39,084 |
|
|
Federal Home Loan Bank advances |
|
4,931 |
|
|
|
4,887 |
|
|
|
4,840 |
|
|
|
4,952 |
|
|
|
4,947 |
|
|
Other borrowings |
|
2,501 |
|
|
|
2,568 |
|
|
|
2,609 |
|
|
|
2,779 |
|
|
|
3,012 |
|
|
Subordinated notes |
|
5,480 |
|
|
|
5,512 |
|
|
|
5,477 |
|
|
|
5,509 |
|
|
|
5,474 |
|
|
Junior subordinated debentures |
|
2,744 |
|
|
|
2,724 |
|
|
|
2,704 |
|
|
|
2,742 |
|
|
|
2,703 |
|
|
Total interest expense |
|
$ |
34,961 |
|
|
|
$ |
39,989 |
|
|
|
$ |
43,574 |
|
|
|
$ |
48,584 |
|
|
|
$ |
55,220 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Less: Fully taxable-equivalent adjustment |
|
(903 |
) |
|
|
(909 |
) |
|
|
(884 |
) |
|
|
(857 |
) |
|
|
(1,028 |
) |
|
Net interest income (GAAP) (2) |
|
287,496 |
|
|
|
279,590 |
|
|
|
261,895 |
|
|
|
259,397 |
|
|
|
255,936 |
|
|
Fully taxable-equivalent adjustment |
|
903 |
|
|
|
909 |
|
|
|
884 |
|
|
|
857 |
|
|
|
1,028 |
|
|
Net interest income, fully taxable-equivalent (non-GAAP)
(2) |
|
$ |
288,399 |
|
|
|
$ |
280,499 |
|
|
|
$ |
262,779 |
|
|
|
$ |
260,254 |
|
|
|
$ |
256,964 |
|
|
(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, |
|
|
Sep 30,
2021 |
|
Jun 30,
2021 |
|
Mar 31,
2021 |
|
Dec 31,
2020 |
|
Sep 30,
2020 |
Yield earned on: |
|
|
|
|
|
|
|
|
|
|
Interest-bearing deposits with banks and cash equivalents |
|
0.16 |
|
% |
|
0.12 |
|
% |
|
0.11 |
|
% |
|
0.12 |
|
% |
|
0.14 |
|
% |
Investment securities |
|
2.01 |
|
|
|
2.03 |
|
|
|
2.03 |
|
|
|
2.11 |
|
|
|
2.35 |
|
|
FHLB and FRB stock |
|
5.18 |
|
|
|
5.20 |
|
|
|
5.21 |
|
|
|
5.21 |
|
|
|
5.21 |
|
|
Liquidity management assets |
|
1.13 |
|
|
|
1.24 |
|
|
|
1.11 |
|
|
|
1.08 |
|
|
|
1.37 |
|
|
Other earning assets |
|
2.64 |
|
|
|
2.59 |
|
|
|
2.50 |
|
|
|
2.79 |
|
|
|
2.71 |
|
|
Mortgage loans held-for-sale |
|
3.51 |
|
|
|
3.31 |
|
|
|
3.18 |
|
|
|
2.83 |
|
|
|
2.80 |
|
|
Loans, net of unearned income |
|
3.44 |
|
|
|
3.46 |
|
|
|
3.43 |
|
|
|
3.51 |
|
|
|
3.53 |
|
|
Total earning assets |
|
2.90 |
|
% |
|
3.00 |
|
% |
|
2.96 |
|
% |
|
3.02 |
|
% |
|
3.12 |
|
% |
|
|
|
|
|
|
|
|
|
|
|
Rate paid on: |
|
|
|
|
|
|
|
|
|
|
NOW and interest-bearing demand deposits |
|
0.08 |
|
% |
|
0.08 |
|
% |
|
0.10 |
|
% |
|
0.13 |
|
% |
|
0.16 |
|
% |
Wealth management deposits |
|
0.67 |
|
|
|
0.71 |
|
|
|
0.72 |
|
|
|
0.73 |
|
|
|
0.72 |
|
|
Money market accounts |
|
0.09 |
|
|
|
0.12 |
|
|
|
0.12 |
|
|
|
0.16 |
|
|
|
0.31 |
|
|
Savings accounts |
|
0.04 |
|
|
|
0.04 |
|
|
|
0.05 |
|
|
|
0.09 |
|
|
|
0.24 |
|
|
Time deposits |
|
0.74 |
|
|
|
1.10 |
|
|
|
1.36 |
|
|
|
1.54 |
|
|
|
1.68 |
|
|
Interest-bearing deposits |
|
0.29 |
|
|
|
0.38 |
|
|
|
0.45 |
|
|
|
0.51 |
|
|
|
0.61 |
|
|
Federal Home Loan Bank advances |
|
1.58 |
|
|
|
1.59 |
|
|
|
1.60 |
|
|
|
1.60 |
|
|
|
1.60 |
|
|
Other borrowings |
|
1.94 |
|
|
|
1.96 |
|
|
|
2.04 |
|
|
|
2.16 |
|
|
|
2.34 |
|
|
Subordinated notes |
|
5.02 |
|
|
|
5.05 |
|
|
|
5.02 |
|
|
|
5.05 |
|
|
|
5.02 |
|
|
Junior subordinated debentures |
|
4.23 |
|
|
|
4.25 |
|
|
|
4.27 |
|
|
|
4.23 |
|
|
|
4.17 |
|
|
Total interest-bearing liabilities |
|
0.48 |
|
% |
|
0.56 |
|
% |
|
0.63 |
|
% |
|
0.70 |
|
% |
|
0.79 |
|
% |
|
|
|
|
|
|
|
|
|
|
|
Interest rate spread (1)(2) |
|
2.42 |
|
% |
|
2.44 |
|
% |
|
2.33 |
|
% |
|
2.32 |
|
% |
|
2.33 |
|
% |
Less: Fully taxable-equivalent adjustment |
|
(0.01 |
) |
|
|
(0.01 |
) |
|
|
(0.01 |
) |
|
|
(0.01 |
) |
|
|
(0.01 |
) |
|
Net free funds/contribution (3) |
|
0.17 |
|
|
|
0.19 |
|
|
|
0.21 |
|
|
|
0.22 |
|
|
|
0.24 |
|
|
Net interest margin (GAAP) (2) |
|
2.58 |
|
% |
|
2.62 |
|
% |
|
2.53 |
|
% |
|
2.53 |
|
% |
|
2.56 |
|
% |
Fully taxable-equivalent adjustment |
|
0.01 |
|
|
|
0.01 |
|
|
|
0.01 |
|
|
|
0.01 |
|
|
|
0.01 |
|
|
Net interest margin, fully taxable-equivalent (non-GAAP)
(2) |
|
2.59 |
|
% |
|
2.63 |
|
% |
|
2.54 |
|
% |
|
2.54 |
|
% |
|
2.57 |
|
% |
(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 nine months ended, |
Interest
for nine months ended, |
Yield/Rate
for nine months ended, |
(Dollars in thousands) |
Sep 30,
2021 |
|
Sep 30,
2020 |
Sep 30,
2021 |
|
Sep 30,
2020 |
Sep 30,
2021 |
|
Sep 30,
2020 |
Interest-bearing deposits with banks and cash equivalents
(1) |
$ |
4,399,217 |
|
|
|
$ |
2,692,678 |
|
|
$ |
4,352 |
|
|
|
$ |
7,361 |
|
|
0.13 |
|
% |
|
0.37 |
|
% |
Investment securities (2) |
4,597,997 |
|
|
|
4,291,362 |
|
|
69,562 |
|
|
|
83,026 |
|
|
2.02 |
|
|
|
2.58 |
|
|
FHLB and FRB stock |
136,028 |
|
|
|
128,611 |
|
|
5,291 |
|
|
|
5,116 |
|
|
5.20 |
|
|
|
5.31 |
|
|
Liquidity management assets (3)(4) |
$ |
9,133,242 |
|
|
|
$ |
7,112,651 |
|
|
$ |
79,205 |
|
|
|
$ |
95,503 |
|
|
1.16 |
|
% |
|
1.79 |
|
% |
Other earning assets (3)(4)(5) |
24,016 |
|
|
|
17,576 |
|
|
463 |
|
|
|
393 |
|
|
2.59 |
|
|
|
2.99 |
|
|
Mortgage loans held-for-sale |
1,003,868 |
|
|
|
644,611 |
|
|
24,935 |
|
|
|
13,720 |
|
|
3.32 |
|
|
|
2.84 |
|
|
Loans, net of unearned income (3)(4)(6) |
32,839,837 |
|
|
|
29,643,281 |
|
|
845,598 |
|
|
|
878,981 |
|
|
3.44 |
|
|
|
3.96 |
|
|
Total earning assets (4) |
$ |
43,000,963 |
|
|
|
$ |
37,418,119 |
|
|
$ |
950,201 |
|
|
|
$ |
988,597 |
|
|
2.95 |
|
% |
|
3.53 |
|
% |
Allowance for loan and investment security losses |
(294,033 |
) |
|
|
(240,467 |
) |
|
|
|
|
|
|
|
Cash and due from banks |
420,874 |
|
|
|
339,968 |
|
|
|
|
|
|
|
|
Other assets |
2,922,933 |
|
|
|
3,034,897 |
|
|
|
|
|
|
|
|
Total assets |
$ |
46,050,737 |
|
|
|
$ |
40,552,517 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NOW and interest-bearing demand deposits |
$ |
3,626,819 |
|
|
|
$ |
3,291,176 |
|
|
$ |
2,404 |
|
|
|
$ |
6,569 |
|
|
0.09 |
|
% |
|
0.27 |
|
% |
Wealth management deposits |
4,401,489 |
|
|
|
3,821,203 |
|
|
22,925 |
|
|
|
21,840 |
|
|
0.70 |
|
|
|
0.76 |
|
|
Money market accounts |
9,639,370 |
|
|
|
8,686,171 |
|
|
8,002 |
|
|
|
42,748 |
|
|
0.11 |
|
|
|
0.66 |
|
|
Savings accounts |
3,723,420 |
|
|
|
3,334,944 |
|
|
1,238 |
|
|
|
11,736 |
|
|
0.04 |
|
|
|
0.47 |
|
|
Time deposits |
4,579,161 |
|
|
|
5,176,307 |
|
|
36,978 |
|
|
|
73,683 |
|
|
1.08 |
|
|
|
1.90 |
|
|
Interest-bearing deposits |
$ |
25,970,259 |
|
|
|
$ |
24,309,801 |
|
|
$ |
71,547 |
|
|
|
$ |
156,576 |
|
|
0.37 |
|
% |
|
0.86 |
|
% |
Federal Home Loan Bank advances |
1,234,929 |
|
|
|
1,131,823 |
|
|
14,658 |
|
|
|
13,241 |
|
|
1.59 |
|
|
|
1.56 |
|
|
Other borrowings |
518,946 |
|
|
|
491,981 |
|
|
7,678 |
|
|
|
9,994 |
|
|
1.98 |
|
|
|
2.71 |
|
|
Subordinated notes |
436,641 |
|
|
|
436,223 |
|
|
16,469 |
|
|
|
16,452 |
|
|
5.03 |
|
|
|
5.03 |
|
|
Junior subordinated debentures |
253,566 |
|
|
|
253,566 |
|
|
8,172 |
|
|
|
8,266 |
|
|
4.25 |
|
|
|
4.28 |
|
|
Total interest-bearing liabilities |
$ |
28,414,341 |
|
|
|
$ |
26,623,394 |
|
|
$ |
118,524 |
|
|
|
$ |
204,529 |
|
|
0.56 |
|
% |
|
1.03 |
|
% |
Non-interest-bearing deposits |
12,300,931 |
|
|
|
8,947,639 |
|
|
|
|
|
|
|
|
Other liabilities |
1,079,614 |
|
|
|
1,096,297 |
|
|
|
|
|
|
|
|
Equity |
4,255,851 |
|
|
|
3,885,187 |
|
|
|
|
|
|
|
|
Total liabilities and shareholders’ equity |
$ |
46,050,737 |
|
|
|
$ |
40,552,517 |
|
|
|
|
|
|
|
|
Interest rate spread (4)(7) |
|
|
|
|
|
|
2.39 |
|
% |
|
2.50 |
|
% |
Less: Fully taxable-equivalent adjustment |
|
|
|
(2,696 |
) |
|
|
(3,558 |
) |
|
(0.01 |
) |
|
|
(0.01 |
) |
|
Net free funds/contribution (8) |
$ |
14,586,622 |
|
|
|
$ |
10,794,725 |
|
|
|
|
|
0.20 |
|
|
|
0.30 |
|
|
Net interest income/margin (GAAP) (4) |
|
|
|
$ |
828,981 |
|
|
|
$ |
780,510 |
|
|
2.58 |
|
% |
|
2.79 |
|
% |
Fully taxable-equivalent adjustment |
|
|
|
2,696 |
|
|
|
3,558 |
0.01 |
|
|
|
0.01 |
|
|
Net interest income/margin, fully taxable-equivalent (non-GAAP)
(4) |
|
|
|
$ |
831,677 |
|
|
|
$ |
784,068 |
|
|
2.59 |
|
% |
|
2.80 |
|
% |
(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 |
Sep 30, 2021 |
|
24.3 |
% |
|
11.5 |
% |
|
(7.8 |
) |
% |
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 |
) |
|
Ramp Scenario |
+200
Basis
Points |
|
+100
Basis
Points |
|
-100
Basis
Points |
Sep 30, 2021 |
10.8 |
% |
|
5.4 |
% |
|
(3.8 |
) |
% |
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 |
) |
|
TABLE 9: MATURITIES AND SENSITIVITIES TO
CHANGES IN INTEREST RATES
|
Loans repricing or maturity period |
|
|
As of September 30, 2021 |
One year or
less |
|
From one to five
years |
|
Over five years |
|
|
(In
thousands) |
|
|
|
Total |
Commercial |
|
|
|
|
|
|
|
Fixed rate |
$ |
484,771 |
|
|
$ |
2,015,188 |
|
|
$ |
837,153 |
|
|
$ |
3,337,112 |
|
Fixed Rate - PPP |
141,394 |
|
|
940,594 |
|
|
— |
|
|
1,081,988 |
|
Variable rate |
6,765,489 |
|
|
3,323 |
|
|
60 |
|
|
6,768,872 |
|
Total commercial |
$ |
7,391,654 |
|
|
$ |
2,959,105 |
|
|
$ |
837,213 |
|
|
$ |
11,187,972 |
|
Commercial real estate |
|
|
|
|
|
|
|
Fixed rate |
558,728 |
|
|
2,201,827 |
|
|
493,256 |
|
|
3,253,811 |
|
Variable rate |
5,607,888 |
|
|
24,015 |
|
|
— |
|
|
5,631,903 |
|
Total commercial real estate |
$ |
6,166,616 |
|
|
$ |
2,225,842 |
|
|
$ |
493,256 |
|
|
$ |
8,885,714 |
|
Home equity |
|
|
|
|
|
|
|
Fixed rate |
14,818 |
|
|
4,618 |
|
|
45 |
|
|
19,481 |
|
Variable rate |
328,181 |
|
|
— |
|
|
— |
|
|
328,181 |
|
Total home equity |
$ |
342,999 |
|
|
$ |
4,618 |
|
|
$ |
45 |
|
|
$ |
347,662 |
|
Residential real estate |
|
|
|
|
|
|
|
Fixed rate |
19,165 |
|
|
6,415 |
|
|
819,685 |
|
|
845,265 |
|
Variable rate |
58,698 |
|
|
258,143 |
|
|
385,630 |
|
|
702,471 |
|
Total residential real estate |
$ |
77,863 |
|
|
$ |
264,558 |
|
|
$ |
1,205,315 |
|
|
$ |
1,547,736 |
|
Premium finance receivables - commercial |
|
|
|
|
|
|
|
Fixed rate |
4,479,551 |
|
|
137,426 |
|
|
— |
|
|
4,616,977 |
|
Variable rate |
— |
|
|
— |
|
|
— |
|
|
— |
|
Total premium finance receivables - commercial |
$ |
4,479,551 |
|
|
$ |
137,426 |
|
|
$ |
— |
|
|
$ |
4,616,977 |
|
Premium finance receivables - life insurance |
|
|
|
|
|
|
|
Fixed rate |
9,046 |
|
|
438,568 |
|
|
21,813 |
|
|
469,427 |
|
Variable rate |
6,186,026 |
|
|
— |
|
|
— |
|
|
6,186,026 |
|
Total premium finance receivables - life insurance |
$ |
6,195,072 |
|
|
$ |
438,568 |
|
|
$ |
21,813 |
|
|
$ |
6,655,453 |
|
Consumer and other |
|
|
|
|
|
|
|
Fixed rate |
4,366 |
|
|
4,852 |
|
|
906 |
|
|
10,124 |
|
Variable rate |
12,405 |
|
|
— |
|
|
— |
|
|
12,405 |
|
Total consumer and other |
$ |
16,771 |
|
|
$ |
4,852 |
|
|
$ |
906 |
|
|
$ |
22,529 |
|
|
|
|
|
|
|
|
|
Total per category |
|
|
|
|
|
|
|
Fixed rate |
5,570,445 |
|
|
4,808,894 |
|
|
2,172,858 |
|
|
12,552,197 |
|
Fixed rate - PPP |
141,394 |
|
|
940,594 |
|
|
— |
|
|
1,081,988 |
|
Variable rate |
18,958,687 |
|
|
285,481 |
|
|
385,690 |
|
|
19,629,858 |
|
Total loans, net of unearned income |
$ |
24,670,526 |
|
|
$ |
6,034,969 |
|
|
$ |
2,558,548 |
|
|
$ |
33,264,043 |
|
|
|
|
|
|
|
|
|
Variable Rate Loan Pricing by Index: |
|
|
|
|
|
|
|
Prime |
|
|
|
|
|
|
$ |
2,989,860 |
|
One- month LIBOR |
|
|
|
|
|
|
9,177,387 |
|
Three- month LIBOR |
|
|
|
|
|
|
374,045 |
|
Twelve- month LIBOR |
|
|
|
|
|
|
6,499,434 |
|
Thirty-day moving-average SOFR |
|
|
|
|
|
|
174,768 |
|
Other |
|
|
|
|
|
|
414,364 |
|
Total variable rate |
|
|
|
|
|
|
$ |
19,629,858 |
|
LIBOR - London Interbank Offered Rate.
SOFR - Secured Overnight Financing Rate.
Graph available at the following link: http://ml.globenewswire.com/Resource/Download/576d571d-5850-417e-a3ea-048102b0a331
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 $9.2 billion of variable rate loans tied to one-month LIBOR and
$6.5 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 |
|
Third Quarter 2021 |
|
0 |
bps |
-2 |
bps |
-1 |
bp |
Second
Quarter 2021 |
|
0 |
|
-1 |
|
-3 |
|
First
Quarter 2021 |
|
0 |
|
-3 |
|
-6 |
|
Fourth
Quarter 2020 |
|
0 |
|
-1 |
|
-2 |
|
Third Quarter 2020 |
|
0 |
|
-1 |
|
-19 |
|
TABLE 10: ALLOWANCE FOR CREDIT LOSSES
|
|
Three Months Ended |
Nine Months Ended |
|
|
Sep 30, |
|
Jun 30, |
|
Mar 31, |
|
Dec 31, |
|
Sep 30, |
Sep 30, |
|
Sep 30, |
(Dollars in thousands) |
|
2021 |
|
2021 |
|
2021 |
|
2020 |
|
2020 |
2021 |
|
2020 |
Allowance for credit losses at beginning of
period |
|
$ |
304,121 |
|
|
|
$ |
321,308 |
|
|
|
$ |
379,969 |
|
|
|
$ |
388,971 |
|
|
|
$ |
373,174 |
|
|
$ |
379,969 |
|
|
|
$ |
158,461 |
|
|
Cumulative effect adjustment from the adoption of ASU
2016-13 |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
— |
|
|
|
47,418 |
|
|
Provision for credit losses |
|
(7,916 |
) |
|
|
(15,299 |
) |
|
|
(45,347 |
) |
|
|
1,180 |
|
|
|
25,026 |
|
|
(68,562 |
) |
|
|
213,040 |
|
|
Other adjustments |
|
(65 |
) |
|
|
34 |
|
|
|
31 |
|
|
|
155 |
|
|
|
55 |
|
|
— |
|
|
|
24 |
|
|
Charge-offs: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial |
|
1,352 |
|
|
|
3,237 |
|
|
|
11,781 |
|
|
|
5,184 |
|
|
|
5,270 |
|
|
16,370 |
|
|
|
13,109 |
|
|
Commercial real estate |
|
406 |
|
|
|
1,412 |
|
|
|
980 |
|
|
|
6,637 |
|
|
|
1,529 |
|
|
2,798 |
|
|
|
9,323 |
|
|
Home equity |
|
59 |
|
|
|
142 |
|
|
|
— |
|
|
|
683 |
|
|
|
138 |
|
|
201 |
|
|
|
1,378 |
|
|
Residential real estate |
|
10 |
|
|
|
3 |
|
|
|
2 |
|
|
|
114 |
|
|
|
83 |
|
|
15 |
|
|
|
777 |
|
|
Premium finance receivables |
|
1,390 |
|
|
|
2,077 |
|
|
|
3,239 |
|
|
|
4,214 |
|
|
|
4,640 |
|
|
6,706 |
|
|
|
11,258 |
|
|
Consumer and other |
|
112 |
|
|
|
104 |
|
|
|
114 |
|
|
|
198 |
|
|
|
103 |
|
|
330 |
|
|
|
330 |
|
|
Total charge-offs |
|
3,329 |
|
|
|
6,975 |
|
|
|
16,116 |
|
|
|
17,030 |
|
|
|
11,763 |
|
|
26,420 |
|
|
|
36,175 |
|
|
Recoveries: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial |
|
816 |
|
|
|
902 |
|
|
|
452 |
|
|
|
4,168 |
|
|
|
428 |
|
|
2,170 |
|
|
|
924 |
|
|
Commercial real estate |
|
373 |
|
|
|
514 |
|
|
|
200 |
|
|
|
904 |
|
|
|
175 |
|
|
1,087 |
|
|
|
931 |
|
|
Home equity |
|
313 |
|
|
|
328 |
|
|
|
101 |
|
|
|
77 |
|
|
|
111 |
|
|
742 |
|
|
|
451 |
|
|
Residential real estate |
|
5 |
|
|
|
36 |
|
|
|
204 |
|
|
|
69 |
|
|
|
25 |
|
|
245 |
|
|
|
115 |
|
|
Premium finance receivables |
|
1,728 |
|
|
|
3,239 |
|
|
|
1,782 |
|
|
|
1,445 |
|
|
|
1,720 |
|
|
6,749 |
|
|
|
3,663 |
|
|
Consumer and other |
|
92 |
|
|
|
34 |
|
|
|
32 |
|
|
|
30 |
|
|
|
20 |
|
|
158 |
|
|
|
119 |
|
|
Total recoveries |
|
3,327 |
|
|
|
5,053 |
|
|
|
2,771 |
|
|
|
6,693 |
|
|
|
2,479 |
|
|
11,151 |
|
|
|
6,203 |
|
|
Net charge-offs |
|
(2 |
) |
|
|
(1,922 |
) |
|
|
(13,345 |
) |
|
|
(10,337 |
) |
|
|
(9,284 |
) |
|
(15,269 |
) |
|
|
(29,972 |
) |
|
Allowance for credit losses at period end |
|
$ |
296,138 |
|
|
|
$ |
304,121 |
|
|
|
$ |
321,308 |
|
|
|
$ |
379,969 |
|
|
|
$ |
388,971 |
|
|
$ |
296,138 |
|
|
|
$ |
388,971 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Annualized net charge-offs (recoveries) by category as a
percentage of its own respective
category’s average: |
|
|
|
Commercial |
|
0.02 |
|
% |
|
0.08 |
|
% |
|
0.37 |
|
% |
|
0.03 |
|
% |
|
0.16 |
|
% |
0.16 |
|
% |
|
0.15 |
|
% |
Commercial real estate |
|
0.00 |
|
|
|
0.04 |
|
|
|
0.04 |
|
|
|
0.27 |
|
|
|
0.06 |
|
|
0.03 |
|
|
|
0.14 |
|
|
Home equity |
|
(0.28 |
) |
|
|
(0.20 |
) |
|
|
(0.10 |
) |
|
|
0.55 |
|
|
|
0.02 |
|
|
(0.19 |
) |
|
|
0.26 |
|
|
Residential real estate |
|
0.00 |
|
|
|
(0.01 |
) |
|
|
(0.06 |
) |
|
|
0.02 |
|
|
|
0.02 |
|
|
(0.02 |
) |
|
|
0.07 |
|
|
Premium finance receivables |
|
(0.01 |
) |
|
|
(0.04 |
) |
|
|
0.06 |
|
|
|
0.11 |
|
|
|
0.12 |
|
|
0.00 |
|
|
|
0.11 |
|
|
Consumer and other |
|
0.26 |
|
|
|
0.69 |
|
|
|
0.57 |
|
|
|
0.78 |
|
|
|
0.49 |
|
|
0.54 |
|
|
|
0.41 |
|
|
Total loans, net of unearned income |
|
0.00 |
|
% |
|
0.02 |
|
% |
|
0.17 |
|
% |
|
0.13 |
|
% |
|
0.12 |
|
% |
0.06 |
|
% |
|
0.14 |
|
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans at period end |
|
$ |
33,264,043 |
|
|
|
$ |
32,911,187 |
|
|
|
$ |
33,171,233 |
|
|
|
$ |
32,079,073 |
|
|
|
$ |
32,135,555 |
|
|
|
|
|
Allowance for loan losses as a percentage of loans at
period end |
|
0.75 |
|
% |
|
0.79 |
|
% |
|
0.84 |
|
% |
|
1.00 |
|
% |
|
1.01 |
|
% |
|
|
|
Allowance for loan and unfunded lending-related commitment
losses as a percentage of loans at period end |
|
0.89 |
|
|
|
0.92 |
|
|
|
0.97 |
|
|
|
1.18 |
|
|
|
1.21 |
|
|
|
|
|
Allowance for loan and unfunded lending-related commitment
losses as a percentage of loans at period end, excluding PPP
loans |
|
0.92 |
|
|
|
0.98 |
|
|
|
1.08 |
|
|
|
1.29 |
|
|
|
1.35 |
|
|
|
|
|
TABLE 11: ALLOWANCE AND PROVISION FOR CREDIT LOSSES BY
COMPONENT
|
|
Three Months Ended |
Nine Months Ended |
|
|
Sep 30, |
|
Jun 30, |
|
Mar 31, |
|
Dec 31, |
|
Sep 30, |
Sep 30, |
|
Sep 30, |
(In
thousands) |
|
2021 |
|
2021 |
|
2021 |
|
2020 |
|
2020 |
2021 |
|
2020 |
Provision for loan losses |
|
$ |
(12,410 |
) |
|
|
$ |
(14,731 |
) |
|
|
$ |
(28,351 |
) |
|
|
$ |
3,597 |
|
|
|
$ |
21,678 |
|
|
$ |
(55,492 |
) |
|
|
$ |
184,896 |
|
|
Provision for unfunded lending-related commitments losses |
|
4,501 |
|
|
|
(558 |
) |
|
|
(17,035 |
) |
|
|
(2,413 |
) |
|
|
3,350 |
|
|
(13,092 |
) |
|
|
28,155 |
|
|
Provision for held-to-maturity securities losses |
|
(7 |
) |
|
|
(10 |
) |
|
|
39 |
|
|
|
(4 |
) |
|
|
(2 |
) |
|
22 |
|
|
|
(11 |
) |
|
Provision for credit losses |
|
$ |
(7,916 |
) |
|
|
$ |
(15,299 |
) |
|
|
$ |
(45,347 |
) |
|
|
$ |
1,180 |
|
|
|
$ |
25,026 |
|
|
$ |
(68,562 |
) |
|
|
$ |
213,040 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Allowance for loan losses |
|
$ |
248,612 |
|
|
|
$ |
261,089 |
|
|
|
$ |
277,709 |
|
|
|
$ |
319,374 |
|
|
|
$ |
325,959 |
|
|
|
|
|
Allowance for unfunded lending-related commitments losses |
|
47,443 |
|
|
|
42,942 |
|
|
|
43,500 |
|
|
|
60,536 |
|
|
|
62,949 |
|
|
|
|
|
Allowance for loan losses and unfunded lending-related commitments
losses |
|
296,055 |
|
|
|
304,031 |
|
|
|
321,209 |
|
|
|
379,910 |
|
|
|
388,908 |
|
|
|
|
|
Allowance for held-to-maturity securities losses |
|
83 |
|
|
|
90 |
|
|
|
99 |
|
|
|
59 |
|
|
|
63 |
|
|
|
|
|
Allowance for credit losses |
|
$ |
296,138 |
|
|
|
$ |
304,121 |
|
|
|
$ |
321,308 |
|
|
|
$ |
379,969 |
|
|
|
$ |
388,971 |
|
|
|
|
|
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
September 30, 2021, June 30, 2021, and March 31,
2021.
|
As of Sep 30, 2021 |
As of Jun 30, 2021 |
As of Mar 31, 2021 |
(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 |
$ |
10,105,984 |
|
|
$ |
109,780 |
|
|
1.09 |
% |
$ |
9,562,869 |
|
|
$ |
98,505 |
|
|
1.03 |
% |
$ |
9,415,225 |
|
|
$ |
95,637 |
|
|
1.02 |
% |
Commercial PPP loans |
1,081,988 |
|
|
2 |
|
|
0.00 |
|
1,879,407 |
|
|
2 |
|
|
0.00 |
|
3,292,982 |
|
|
3 |
|
|
0.00 |
|
Commercial real estate: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Construction and development |
1,343,715 |
|
|
34,101 |
|
|
2.54 |
|
1,385,249 |
|
|
38,550 |
|
|
2.78 |
|
1,353,324 |
|
|
45,327 |
|
|
3.35 |
|
Non-construction |
7,541,999 |
|
|
105,934 |
|
|
1.40 |
|
7,293,120 |
|
|
119,972 |
|
|
1.65 |
|
7,191,455 |
|
|
136,465 |
|
|
1.90 |
|
Home
equity |
347,662 |
|
|
10,939 |
|
|
3.15 |
|
369,806 |
|
|
11,207 |
|
|
3.03 |
|
390,253 |
|
|
11,382 |
|
|
2.92 |
|
Residential real estate |
1,547,736 |
|
|
16,272 |
|
|
1.05 |
|
1,530,285 |
|
|
15,684 |
|
|
1.02 |
|
1,421,973 |
|
|
14,242 |
|
|
1.00 |
|
Premium finance receivables |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial insurance loans |
4,616,977 |
|
|
17,996 |
|
|
0.39 |
|
4,521,871 |
|
|
19,346 |
|
|
0.43 |
|
3,958,543 |
|
|
16,945 |
|
|
0.43 |
|
Life insurance loans |
6,655,453 |
|
|
579 |
|
|
0.01 |
|
6,359,556 |
|
|
553 |
|
|
0.01 |
|
6,111,495 |
|
|
532 |
|
|
0.01 |
|
Consumer
and other |
22,529 |
|
|
452 |
|
|
2.01 |
|
9,024 |
|
|
212 |
|
|
2.35 |
|
35,983 |
|
|
676 |
|
|
1.88 |
|
Total loans, net of unearned income |
$ |
33,264,043 |
|
|
$ |
296,055 |
|
|
0.89 |
% |
$ |
32,911,187 |
|
|
$ |
304,031 |
|
|
0.92 |
% |
$ |
33,171,233 |
|
|
$ |
321,209 |
|
|
0.97 |
% |
Total loans, net of unearned income, excluding PPP
loans |
$ |
32,182,055 |
|
|
$ |
296,053 |
|
|
0.92 |
% |
$ |
31,031,780 |
|
|
$ |
304,029 |
|
|
0.98 |
% |
$ |
29,878,251 |
|
|
$ |
321,206 |
|
|
1.08 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total core loans (1) |
$ |
18,690,730 |
|
|
$ |
257,788 |
|
|
1.38 |
% |
$ |
17,989,306 |
|
|
$ |
267,999 |
|
|
1.49 |
% |
$ |
17,492,767 |
|
|
$ |
283,505 |
|
|
1.62 |
% |
Total niche loans (1) |
13,491,325 |
|
|
38,265 |
|
|
0.28 |
|
13,042,474 |
|
|
36,030 |
|
|
0.28 |
|
12,385,484 |
|
|
37,701 |
|
|
0.30 |
|
Total PPP loans |
1,081,988 |
|
|
2 |
|
|
0.00 |
|
1,879,407 |
|
|
2 |
|
|
0.00 |
|
3,292,982 |
|
|
3 |
|
|
0.00 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) See Table 1 for additional detail on
core and niche loans.
TABLE 13: LOAN PORTFOLIO
AGING
(Dollars in thousands) |
|
Sep 30, 2021 |
|
Jun 30, 2021 |
|
Mar 31, 2021 |
|
Dec 31, 2020 |
|
Sep 30, 2020 |
Loan Balances: |
|
|
|
|
|
|
|
|
|
|
Commercial |
|
|
|
|
|
|
|
|
|
|
Nonaccrual |
|
$ |
26,468 |
|
|
$ |
23,232 |
|
|
$ |
22,459 |
|
|
$ |
21,743 |
|
|
$ |
42,036 |
|
90+ days and still accruing |
|
— |
|
|
1,244 |
|
|
— |
|
|
307 |
|
|
— |
|
60-89 days past due |
|
9,768 |
|
|
5,204 |
|
|
13,292 |
|
|
6,900 |
|
|
2,168 |
|
30-59 days past due |
|
25,224 |
|
|
18,478 |
|
|
35,541 |
|
|
44,381 |
|
|
48,271 |
|
Current |
|
11,126,512 |
|
|
11,394,118 |
|
|
12,636,915 |
|
|
11,882,636 |
|
|
12,184,524 |
|
Total commercial |
|
$ |
11,187,972 |
|
|
$ |
11,442,276 |
|
|
$ |
12,708,207 |
|
|
$ |
11,955,967 |
|
|
$ |
12,276,999 |
|
Commercial real estate |
|
|
|
|
|
|
|
|
|
|
Nonaccrual |
|
$ |
23,706 |
|
|
$ |
26,035 |
|
|
$ |
34,380 |
|
|
$ |
46,107 |
|
|
$ |
68,815 |
|
90+ days and still accruing |
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
60-89 days past due |
|
5,395 |
|
|
4,382 |
|
|
8,156 |
|
|
5,178 |
|
|
8,299 |
|
30-59 days past due |
|
79,818 |
|
|
19,698 |
|
|
70,168 |
|
|
32,116 |
|
|
53,462 |
|
Current |
|
8,776,795 |
|
|
8,628,254 |
|
|
8,432,075 |
|
|
8,410,731 |
|
|
8,292,566 |
|
Total commercial real estate |
|
$ |
8,885,714 |
|
|
$ |
8,678,369 |
|
|
$ |
8,544,779 |
|
|
$ |
8,494,132 |
|
|
$ |
8,423,142 |
|
Home equity |
|
|
|
|
|
|
|
|
|
|
Nonaccrual |
|
$ |
3,449 |
|
|
$ |
3,478 |
|
|
$ |
5,536 |
|
|
$ |
6,529 |
|
|
$ |
6,329 |
|
90+ days and still accruing |
|
164 |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
60-89 days past due |
|
340 |
|
|
301 |
|
|
492 |
|
|
47 |
|
|
70 |
|
30-59 days past due |
|
867 |
|
|
777 |
|
|
780 |
|
|
637 |
|
|
1,148 |
|
Current |
|
342,842 |
|
|
365,250 |
|
|
383,445 |
|
|
418,050 |
|
|
438,727 |
|
Total home equity |
|
$ |
347,662 |
|
|
$ |
369,806 |
|
|
$ |
390,253 |
|
|
$ |
425,263 |
|
|
$ |
446,274 |
|
Residential real estate |
|
|
|
|
|
|
|
|
|
|
Nonaccrual |
|
$ |
22,633 |
|
|
$ |
23,050 |
|
|
$ |
21,553 |
|
|
$ |
26,071 |
|
|
$ |
22,069 |
|
90+ days and still accruing |
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
60-89 days past due |
|
1,540 |
|
|
1,584 |
|
|
944 |
|
|
1,635 |
|
|
814 |
|
30-59 days past due |
|
1,076 |
|
|
2,139 |
|
|
13,768 |
|
|
12,584 |
|
|
2,443 |
|
Current |
|
1,522,487 |
|
|
1,503,512 |
|
|
1,385,708 |
|
|
1,219,308 |
|
|
1,359,484 |
|
Total residential real estate |
|
$ |
1,547,736 |
|
|
$ |
1,530,285 |
|
|
$ |
1,421,973 |
|
|
$ |
1,259,598 |
|
|
$ |
1,384,810 |
|
Premium finance receivables |
|
|
|
|
|
|
|
|
|
|
Nonaccrual |
|
$ |
7,300 |
|
|
$ |
6,418 |
|
|
$ |
9,690 |
|
|
$ |
13,264 |
|
|
$ |
21,080 |
|
90+ days and still accruing |
|
5,811 |
|
|
3,570 |
|
|
4,783 |
|
|
12,792 |
|
|
12,177 |
|
60-89 days past due |
|
15,804 |
|
|
7,759 |
|
|
5,113 |
|
|
27,801 |
|
|
38,286 |
|
30-59 days past due |
|
21,654 |
|
|
32,758 |
|
|
31,373 |
|
|
49,274 |
|
|
80,732 |
|
Current |
|
11,221,861 |
|
|
10,830,922 |
|
|
10,019,079 |
|
|
9,808,794 |
|
|
9,396,701 |
|
Total premium finance receivables |
|
$ |
11,272,430 |
|
|
$ |
10,881,427 |
|
|
$ |
10,070,038 |
|
|
$ |
9,911,925 |
|
|
$ |
9,548,976 |
|
Consumer and other |
|
|
|
|
|
|
|
|
|
|
Nonaccrual |
|
$ |
384 |
|
|
$ |
485 |
|
|
$ |
497 |
|
|
$ |
436 |
|
|
$ |
422 |
|
90+ days and still accruing |
|
126 |
|
|
178 |
|
|
161 |
|
|
264 |
|
|
175 |
|
60-89 days past due |
|
16 |
|
|
22 |
|
|
8 |
|
|
24 |
|
|
273 |
|
30-59 days past due |
|
125 |
|
|
75 |
|
|
74 |
|
|
136 |
|
|
493 |
|
Current |
|
21,878 |
|
|
8,264 |
|
|
35,243 |
|
|
31,328 |
|
|
53,991 |
|
Total consumer and other |
|
$ |
22,529 |
|
|
$ |
9,024 |
|
|
$ |
35,983 |
|
|
$ |
32,188 |
|
|
$ |
55,354 |
|
Total loans, net of unearned income |
|
|
|
|
|
|
|
|
|
|
Nonaccrual |
|
$ |
83,940 |
|
|
$ |
82,698 |
|
|
$ |
94,115 |
|
|
$ |
114,150 |
|
|
$ |
160,751 |
|
90+ days and still accruing |
|
6,101 |
|
|
4,992 |
|
|
4,944 |
|
|
13,363 |
|
|
12,352 |
|
60-89 days past due |
|
32,863 |
|
|
19,252 |
|
|
28,005 |
|
|
41,585 |
|
|
49,910 |
|
30-59 days past due |
|
128,764 |
|
|
73,925 |
|
|
151,704 |
|
|
139,128 |
|
|
186,549 |
|
Current |
|
33,012,375 |
|
|
32,730,320 |
|
|
32,892,465 |
|
|
31,770,847 |
|
|
31,725,993 |
|
Total loans, net of unearned income |
|
$ |
33,264,043 |
|
|
$ |
32,911,187 |
|
|
$ |
33,171,233 |
|
|
$ |
32,079,073 |
|
|
$ |
32,135,555 |
|
TABLE 14: NON-PERFORMING ASSETS AND TROUBLED DEBT
RESTRUCTURINGS ("TDRs")
|
Sep 30, |
|
Jun 30, |
|
Mar 31, |
|
Dec 31, |
|
Sep 30, |
(Dollars in thousands) |
2021 |
|
2021 |
|
2021 |
|
2020 |
|
2020 |
Loans past due greater than 90 days and still
accruing
(1): |
|
|
|
|
|
|
|
|
|
Commercial |
$ |
— |
|
|
$ |
1,244 |
|
|
$ |
— |
|
|
$ |
307 |
|
|
$ |
— |
|
Commercial real estate |
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
Home
equity |
164 |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
Residential real estate |
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
Premium
finance receivables |
5,811 |
|
|
3,570 |
|
|
4,783 |
|
|
12,792 |
|
|
12,177 |
|
Consumer
and other |
126 |
|
|
178 |
|
|
161 |
|
|
264 |
|
|
175 |
|
Total loans past due greater than 90 days and still accruing |
6,101 |
|
|
4,992 |
|
|
4,944 |
|
|
13,363 |
|
|
12,352 |
|
Non-accrual loans: |
|
|
|
|
|
|
|
|
|
Commercial |
26,468 |
|
|
23,232 |
|
|
22,459 |
|
|
21,743 |
|
|
42,036 |
|
Commercial real estate |
23,706 |
|
|
26,035 |
|
|
34,380 |
|
|
46,107 |
|
|
68,815 |
|
Home
equity |
3,449 |
|
|
3,478 |
|
|
5,536 |
|
|
6,529 |
|
|
6,329 |
|
Residential real estate |
22,633 |
|
|
23,050 |
|
|
21,553 |
|
|
26,071 |
|
|
22,069 |
|
Premium
finance receivables |
7,300 |
|
|
6,418 |
|
|
9,690 |
|
|
13,264 |
|
|
21,080 |
|
Consumer
and other |
384 |
|
|
485 |
|
|
497 |
|
|
436 |
|
|
422 |
|
Total non-accrual loans |
83,940 |
|
|
82,698 |
|
|
94,115 |
|
|
114,150 |
|
|
160,751 |
|
Total non-performing loans: |
|
|
|
|
|
|
|
|
|
Commercial |
26,468 |
|
|
24,476 |
|
|
22,459 |
|
|
22,050 |
|
|
42,036 |
|
Commercial real estate |
23,706 |
|
|
26,035 |
|
|
34,380 |
|
|
46,107 |
|
|
68,815 |
|
Home
equity |
3,613 |
|
|
3,478 |
|
|
5,536 |
|
|
6,529 |
|
|
6,329 |
|
Residential real estate |
22,633 |
|
|
23,050 |
|
|
21,553 |
|
|
26,071 |
|
|
22,069 |
|
Premium
finance receivables |
13,111 |
|
|
9,988 |
|
|
14,473 |
|
|
26,056 |
|
|
33,257 |
|
Consumer
and other |
510 |
|
|
663 |
|
|
658 |
|
|
700 |
|
|
597 |
|
Total non-performing loans |
$ |
90,041 |
|
|
$ |
87,690 |
|
|
$ |
99,059 |
|
|
$ |
127,513 |
|
|
$ |
173,103 |
|
Other
real estate owned |
9,934 |
|
|
10,510 |
|
|
8,679 |
|
|
9,711 |
|
|
2,891 |
|
Other
real estate owned - from acquisitions |
3,911 |
|
|
5,062 |
|
|
7,134 |
|
|
6,847 |
|
|
6,326 |
|
Other
repossessed assets |
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
Total non-performing assets |
$ |
103,886 |
|
|
$ |
103,262 |
|
|
$ |
114,872 |
|
|
$ |
144,071 |
|
|
$ |
182,320 |
|
Accruing
TDRs not included within non-performing assets |
$ |
38,468 |
|
|
$ |
44,019 |
|
|
$ |
46,151 |
|
|
$ |
47,023 |
|
|
$ |
46,410 |
|
Total non-performing loans by category as a percent of its
own respective category’s period-end balance: |
|
|
|
|
|
|
|
|
|
Commercial |
0.24 |
% |
|
0.21 |
% |
|
0.18 |
% |
|
0.18 |
% |
|
0.34 |
% |
Commercial real estate |
0.27 |
|
|
0.30 |
|
|
0.40 |
|
|
0.54 |
|
|
0.82 |
|
Home
equity |
1.04 |
|
|
0.94 |
|
|
1.42 |
|
|
1.54 |
|
|
1.42 |
|
Residential real estate |
1.46 |
|
|
1.51 |
|
|
1.52 |
|
|
2.07 |
|
|
1.59 |
|
Premium
finance receivables |
0.12 |
|
|
0.09 |
|
|
0.14 |
|
|
0.26 |
|
|
0.35 |
|
Consumer
and other |
2.26 |
|
|
7.35 |
|
|
1.83 |
|
|
2.17 |
|
|
1.08 |
|
Total loans, net of unearned income |
0.27 |
% |
|
0.27 |
% |
|
0.30 |
% |
|
0.40 |
% |
|
0.54 |
% |
Total non-performing assets as a percentage of total
assets |
0.22 |
% |
|
0.22 |
% |
|
0.25 |
% |
|
0.32 |
% |
|
0.42 |
% |
Allowance for loan losses and unfunded lending-related
commitments losses as a percentage of non-accrual
loans |
352.70 |
% |
|
367.64 |
% |
|
341.29 |
% |
|
332.82 |
% |
|
241.93 |
% |
|
|
|
|
|
|
|
|
|
|
(1) As of
September 30, 2021 and June 30, 2021, $445,000 and
$320,000, respectively, of TDRs were past due greater than 90 days
and still accruing interest. No TDRs as of March 31, 2021,
December 31, 2020, and September 30, 2020 were past due
greater than 90 days and still accruing interest.
Non-performing Loans Rollforward
|
Three Months Ended |
Nine Months Ended |
|
Sep 30, |
|
Jun 30, |
|
Mar 31, |
|
Dec 31, |
|
Sep 30, |
Sep 30, |
|
Sep 30, |
(In
thousands) |
2021 |
|
2021 |
|
2021 |
|
2020 |
|
2020 |
2021 |
|
2020 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance at beginning of period |
$ |
87,690 |
|
|
|
$ |
99,059 |
|
|
|
$ |
127,513 |
|
|
|
$ |
173,103 |
|
|
|
$ |
188,284 |
|
|
$ |
127,513 |
|
|
|
$ |
117,588 |
|
|
Additions from becoming non-performing in the respective
period |
9,341 |
|
|
|
12,762 |
|
|
|
9,894 |
|
|
|
13,224 |
|
|
|
19,771 |
|
|
31,997 |
|
|
|
72,769 |
|
|
Additions from the adoption of ASU 2016-13 |
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
— |
|
|
|
37,285 |
|
|
Return to performing status |
(3,322 |
) |
|
|
— |
|
|
|
(654 |
) |
|
|
(1,000 |
) |
|
|
(6,202 |
) |
|
(3,976 |
) |
|
|
(9,254 |
) |
|
Payments received |
(5,568 |
) |
|
|
(12,312 |
) |
|
|
(22,731 |
) |
|
|
(30,146 |
) |
|
|
(3,733 |
) |
|
(40,611 |
) |
|
|
(22,883 |
) |
|
Transfer to OREO and other repossessed assets |
(720 |
) |
|
|
(3,660 |
) |
|
|
(1,372 |
) |
|
|
(12,662 |
) |
|
|
(598 |
) |
|
(5,752 |
) |
|
|
(1,895 |
) |
|
Charge-offs, net |
(548 |
) |
|
|
(4,684 |
) |
|
|
(2,952 |
) |
|
|
(7,817 |
) |
|
|
(6,583 |
) |
|
(8,184 |
) |
|
|
(22,018 |
) |
|
Net change for niche loans (1) |
3,168 |
|
|
|
(3,475 |
) |
|
|
(10,639 |
) |
|
|
(7,189 |
) |
|
|
(17,836 |
) |
|
(10,946 |
) |
|
|
1,511 |
|
|
Balance at end of period |
$ |
90,041 |
|
|
|
$ |
87,690 |
|
|
|
$ |
99,059 |
|
|
|
$ |
127,513 |
|
|
|
$ |
173,103 |
|
|
$ |
90,041 |
|
|
|
$ |
173,103 |
|
|
(1) This includes activity for premium
finance receivables and indirect consumer loans.
TDRs
|
Sep 30, |
|
Jun 30, |
|
Mar 31, |
|
Dec 31, |
|
Sep 30, |
(In
thousands) |
2021 |
|
2021 |
|
2021 |
|
2020 |
|
2020 |
Accruing TDRs: |
|
|
|
|
|
|
|
|
|
Commercial |
$ |
4,532 |
|
|
$ |
6,911 |
|
|
$ |
7,536 |
|
|
$ |
7,699 |
|
|
$ |
7,863 |
|
Commercial real estate |
8,385 |
|
|
9,659 |
|
|
9,478 |
|
|
10,549 |
|
|
10,846 |
|
Residential real estate and other |
25,551 |
|
|
27,449 |
|
|
29,137 |
|
|
28,775 |
|
|
27,701 |
|
Total accrual |
$ |
38,468 |
|
|
$ |
44,019 |
|
|
$ |
46,151 |
|
|
$ |
47,023 |
|
|
$ |
46,410 |
|
Non-accrual TDRs:
(1) |
|
|
|
|
|
|
|
|
|
Commercial |
$ |
3,079 |
|
|
$ |
4,104 |
|
|
$ |
5,583 |
|
|
$ |
10,491 |
|
|
$ |
13,132 |
|
Commercial real estate |
3,239 |
|
|
3,434 |
|
|
1,309 |
|
|
6,177 |
|
|
13,601 |
|
Residential real estate and other |
3,685 |
|
|
4,190 |
|
|
3,540 |
|
|
4,501 |
|
|
5,392 |
|
Total non-accrual |
$ |
10,003 |
|
|
$ |
11,728 |
|
|
$ |
10,432 |
|
|
$ |
21,169 |
|
|
$ |
32,125 |
|
Total TDRs: |
|
|
|
|
|
|
|
|
|
Commercial |
$ |
7,611 |
|
|
$ |
11,015 |
|
|
$ |
13,119 |
|
|
$ |
18,190 |
|
|
$ |
20,995 |
|
Commercial real estate |
11,624 |
|
|
13,093 |
|
|
10,787 |
|
|
16,726 |
|
|
24,447 |
|
Residential real estate and other |
29,236 |
|
|
31,639 |
|
|
32,677 |
|
|
33,276 |
|
|
33,093 |
|
Total TDRs |
$ |
48,471 |
|
|
$ |
55,747 |
|
|
$ |
56,583 |
|
|
$ |
68,192 |
|
|
$ |
78,535 |
|
(1) Included in total non-performing
loans.
Other Real Estate Owned
|
Three Months Ended |
|
Sep 30, |
|
Jun 30, |
|
Mar 31, |
|
Dec 31, |
|
Sep 30, |
(In
thousands) |
2021 |
|
2021 |
|
2021 |
|
2020 |
|
2020 |
Balance at beginning of period |
$ |
15,572 |
|
|
|
$ |
15,813 |
|
|
|
$ |
16,558 |
|
|
|
$ |
9,217 |
|
|
|
$ |
10,197 |
|
|
Disposals/resolved |
(1,949 |
) |
|
|
(3,152 |
) |
|
|
(2,162 |
) |
|
|
(3,839 |
) |
|
|
(1,532 |
) |
|
Transfers in at fair value, less costs to sell |
315 |
|
|
|
3,660 |
|
|
|
1,587 |
|
|
|
11,508 |
|
|
|
777 |
|
|
Additions from acquisition |
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
Fair value adjustments |
(93 |
) |
|
|
(749 |
) |
|
|
(170 |
) |
|
|
(328 |
) |
|
|
(225 |
) |
|
Balance at end of period |
$ |
13,845 |
|
|
|
$ |
15,572 |
|
|
|
$ |
15,813 |
|
|
|
$ |
16,558 |
|
|
|
$ |
9,217 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Period End |
|
Sep 30, |
|
Jun 30, |
|
Mar 31, |
|
Dec 31, |
|
Sep 30, |
Balance by Property Type: |
2021 |
|
2021 |
|
2021 |
|
2020 |
|
2020 |
Residential real estate |
$ |
1,592 |
|
|
|
$ |
1,952 |
|
|
|
$ |
2,713 |
|
|
|
$ |
2,324 |
|
|
|
$ |
1,839 |
|
|
Residential real estate development |
934 |
|
|
|
1,030 |
|
|
|
1,287 |
|
|
|
1,691 |
|
|
|
— |
|
|
Commercial real estate |
11,319 |
|
|
|
12,590 |
|
|
|
11,813 |
|
|
|
12,543 |
|
|
|
7,378 |
|
|
Total |
$ |
13,845 |
|
|
|
$ |
15,572 |
|
|
|
$ |
15,813 |
|
|
|
$ |
16,558 |
|
|
|
$ |
9,217 |
|
|
TABLE 15: NON-INTEREST INCOME
|
Three Months Ended |
|
Q3 2021 compared to
Q2 2021 |
|
Q3 2021 compared to
Q3 2020 |
|
Sep 30, |
|
Jun 30, |
|
Mar 31, |
|
Dec 31, |
|
Sep 30, |
|
|
(Dollars in thousands) |
2021 |
|
2021 |
|
2021 |
|
2020 |
|
2020 |
|
$ Change |
|
% Change |
|
$ Change |
|
% Change |
Brokerage |
$ |
5,230 |
|
|
|
$ |
5,148 |
|
|
|
$ |
5,040 |
|
|
|
$ |
4,740 |
|
|
|
$ |
4,563 |
|
|
|
$ |
82 |
|
|
|
2 |
|
% |
|
$ |
667 |
|
|
|
15 |
|
% |
Trust and asset management |
26,301 |
|
|
|
25,542 |
|
|
|
24,269 |
|
|
|
22,062 |
|
|
|
20,394 |
|
|
|
759 |
|
|
|
3 |
|
|
|
5,907 |
|
|
|
29 |
|
|
Total wealth management |
31,531 |
|
|
|
30,690 |
|
|
|
29,309 |
|
|
|
26,802 |
|
|
|
24,957 |
|
|
|
841 |
|
|
|
3 |
|
|
|
6,574 |
|
|
|
26 |
|
|
Mortgage banking |
55,794 |
|
|
|
50,584 |
|
|
|
113,494 |
|
|
|
86,819 |
|
|
|
108,544 |
|
|
|
5,210 |
|
|
|
10 |
|
|
|
(52,750 |
) |
|
|
(49 |
) |
|
Service charges on deposit accounts |
14,149 |
|
|
|
13,249 |
|
|
|
12,036 |
|
|
|
11,841 |
|
|
|
11,497 |
|
|
|
900 |
|
|
|
7 |
|
|
|
2,652 |
|
|
|
23 |
|
|
(Losses) gains on investment securities, net |
(2,431 |
) |
|
|
1,285 |
|
|
|
1,154 |
|
|
|
1,214 |
|
|
|
411 |
|
|
|
(3,716 |
) |
|
|
NM |
|
|
|
(2,842 |
) |
|
|
NM |
|
|
Fees from covered call options |
1,157 |
|
|
|
1,388 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(231 |
) |
|
|
(17 |
) |
|
|
1,157 |
|
|
|
NM |
|
|
Trading gains (losses), net |
58 |
|
|
|
(438 |
) |
|
|
419 |
|
|
|
(102 |
) |
|
|
183 |
|
|
|
496 |
|
|
|
NM |
|
|
|
(125 |
) |
|
|
(68 |
) |
|
Operating lease income, net |
12,807 |
|
|
|
12,240 |
|
|
|
14,440 |
|
|
|
12,118 |
|
|
|
11,717 |
|
|
|
567 |
|
|
|
5 |
|
|
|
1,090 |
|
|
|
9 |
|
|
Other: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest rate swap fees |
4,868 |
|
|
|
2,820 |
|
|
|
2,488 |
|
|
|
4,930 |
|
|
|
4,029 |
|
|
|
2,048 |
|
|
|
73 |
|
|
|
839 |
|
|
|
21 |
|
|
BOLI |
2,154 |
|
|
|
1,342 |
|
|
|
1,124 |
|
|
|
2,846 |
|
|
|
1,218 |
|
|
|
812 |
|
|
|
61 |
|
|
|
936 |
|
|
|
77 |
|
|
Administrative services |
1,359 |
|
|
|
1,228 |
|
|
|
1,256 |
|
|
|
1,263 |
|
|
|
1,077 |
|
|
|
131 |
|
|
|
11 |
|
|
|
282 |
|
|
|
26 |
|
|
Foreign currency remeasurement gains (losses) |
77 |
|
|
|
(782 |
) |
|
|
99 |
|
|
|
(208 |
) |
|
|
(54 |
) |
|
|
859 |
|
|
|
NM |
|
|
|
131 |
|
|
|
NM |
|
|
Early pay-offs of capital leases |
209 |
|
|
|
195 |
|
|
|
(52 |
) |
|
|
118 |
|
|
|
165 |
|
|
|
14 |
|
|
|
7 |
|
|
|
44 |
|
|
|
27 |
|
|
Miscellaneous |
14,742 |
|
|
|
15,572 |
|
|
|
10,739 |
|
|
|
10,720 |
|
|
|
6,849 |
|
|
|
(830 |
) |
|
|
(5 |
) |
|
|
7,893 |
|
|
|
NM |
|
|
Total Other |
23,409 |
|
|
|
20,375 |
|
|
|
15,654 |
|
|
|
19,669 |
|
|
|
13,284 |
|
|
|
3,034 |
|
|
|
15 |
|
|
|
10,125 |
|
|
|
76 |
|
|
Total Non-Interest Income |
$ |
136,474 |
|
|
|
$ |
129,373 |
|
|
|
$ |
186,506 |
|
|
|
$ |
158,361 |
|
|
|
$ |
170,593 |
|
|
|
$ |
7,101 |
|
|
|
5 |
|
% |
|
$ |
(34,119 |
) |
|
|
(20 |
) |
% |
NM - Not meaningful.
|
Nine Months Ended |
|
|
|
|
|
Sep 30, |
|
Sep 30, |
|
$ |
|
% |
(Dollars in thousands) |
2021 |
|
2020 |
|
Change |
|
Change |
Brokerage |
$ |
15,418 |
|
|
|
$ |
13,991 |
|
|
|
$ |
1,427 |
|
|
|
10 |
|
% |
Trust and asset management |
76,112 |
|
|
|
59,543 |
|
|
|
16,569 |
|
|
|
28 |
|
|
Total wealth management |
91,530 |
|
|
|
73,534 |
|
|
|
17,996 |
|
|
|
24 |
|
|
Mortgage banking |
219,872 |
|
|
|
259,194 |
|
|
|
(39,322 |
) |
|
|
(15 |
) |
|
Service charges on deposit accounts |
39,434 |
|
|
|
33,182 |
|
|
|
6,252 |
|
|
|
19 |
|
|
Gains (losses) on investment securities, net |
8 |
|
|
|
(3,140 |
) |
|
|
3,148 |
|
|
|
NM |
|
|
Fees from covered call options |
2,545 |
|
|
|
2,292 |
|
|
|
253 |
|
|
|
11 |
|
|
Trading gains (losses), net |
39 |
|
|
|
(902 |
) |
|
|
941 |
|
|
|
NM |
|
|
Operating lease income, net |
39,487 |
|
|
|
35,486 |
|
|
|
4,001 |
|
|
|
11 |
|
|
Other: |
|
|
|
|
|
|
|
Interest rate swap fees |
10,176 |
|
|
|
15,788 |
|
|
|
(5,612 |
) |
|
|
(36 |
) |
|
BOLI |
4,620 |
|
|
|
1,884 |
|
|
|
2,736 |
|
|
|
NM |
|
|
Administrative services |
3,843 |
|
|
|
3,122 |
|
|
|
721 |
|
|
|
23 |
|
|
Foreign currency remeasurement loss |
(606 |
) |
|
|
(413 |
) |
|
|
(193 |
) |
|
|
47 |
|
|
Early pay-offs of leases |
352 |
|
|
|
514 |
|
|
|
(162 |
) |
|
|
(32 |
) |
|
Miscellaneous |
41,053 |
|
|
|
25,287 |
|
|
|
15,766 |
|
|
|
62 |
|
|
Total Other |
59,438 |
|
|
|
46,182 |
|
|
|
13,256 |
|
|
|
29 |
|
|
Total Non-Interest Income |
$ |
452,353 |
|
|
|
$ |
445,828 |
|
|
|
$ |
6,525 |
|
|
|
1 |
|
% |
NM - Not meaningful.
TABLE 16: MORTGAGE BANKING
|
Three Months Ended |
Nine Months Ended |
(Dollars in thousands) |
Sep 30,
2021 |
|
Jun 30,
2021 |
|
Mar 31,
2021 |
|
Dec 31,
2020 |
|
Sep 30,
2020 |
Sep 30,
2021 |
|
Sep 30,
2020 |
Originations: |
|
|
|
|
|
|
|
|
|
|
|
|
Retail originations |
$ |
1,153,265 |
|
|
|
$ |
1,328,721 |
|
|
|
$ |
1,641,664 |
|
|
|
$ |
1,757,093 |
|
|
|
$ |
1,590,699 |
|
|
$ |
4,123,650 |
|
|
|
$ |
3,952,775 |
|
|
Veterans
First originations |
405,663 |
|
|
|
395,290 |
|
|
|
580,303 |
|
|
|
594,151 |
|
|
|
635,876 |
|
|
1,381,256 |
|
|
|
1,700,711 |
|
|
Total originations for sale (A) |
$ |
1,558,928 |
|
|
|
$ |
1,724,011 |
|
|
|
$ |
2,221,967 |
|
|
|
$ |
2,351,244 |
|
|
|
$ |
2,226,575 |
|
|
$ |
5,504,906 |
|
|
|
$ |
5,653,486 |
|
|
Originations for investment |
181,886 |
|
|
|
249,749 |
|
|
|
321,858 |
|
|
|
192,107 |
|
|
|
73,711 |
|
|
753,493 |
|
|
|
204,392 |
|
|
Total originations |
$ |
1,740,814 |
|
|
|
$ |
1,973,760 |
|
|
|
$ |
2,543,825 |
|
|
|
$ |
2,543,351 |
|
|
|
$ |
2,300,286 |
|
|
$ |
6,258,399 |
|
|
|
$ |
5,857,878 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Retail
originations as percentage of originations for sale |
74 |
|
% |
|
77 |
|
% |
|
74 |
|
% |
|
75 |
|
% |
|
71 |
|
% |
75 |
|
% |
|
70 |
|
% |
Veterans
First originations as a percentage of originations for sale |
26 |
|
|
|
23 |
|
|
|
26 |
|
|
|
25 |
|
|
|
29 |
|
|
25 |
|
|
|
30 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Purchases
as a percentage of originations for sale |
56 |
|
% |
|
53 |
|
% |
|
27 |
|
% |
|
35 |
|
% |
|
41 |
|
% |
43 |
|
% |
|
36 |
|
% |
Refinances as a percentage of originations for sale |
44 |
|
|
|
47 |
|
|
|
73 |
|
|
|
65 |
|
|
|
59 |
|
|
57 |
|
|
|
64 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Production Margin: |
|
|
|
|
|
|
|
|
|
|
|
|
Production revenue (B) (1) |
$ |
39,247 |
|
|
|
$ |
37,531 |
|
|
|
$ |
71,282 |
|
|
|
$ |
70,886 |
|
|
|
$ |
94,148 |
|
|
$ |
148,060 |
|
|
|
$ |
236,908 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
originations for sale (A) |
$ |
1,558,928 |
|
|
|
$ |
1,724,011 |
|
|
|
$ |
2,221,967 |
|
|
|
$ |
2,351,244 |
|
|
|
$ |
2,226,575 |
|
|
$ |
5,504,906 |
|
|
|
$ |
5,653,486 |
|
|
Add:
Current period end mandatory interest rate lock commitments to fund
originations for sale (2) |
510,982 |
|
|
|
605,400 |
|
|
|
798,534 |
|
|
|
1,072,717 |
|
|
|
1,544,234 |
|
|
510,982 |
|
|
|
1,544,234 |
|
|
Less:
Prior period end mandatory interest rate lock commitments to fund
originations for sale (2) |
605,400 |
|
|
|
798,534 |
|
|
|
1,072,717 |
|
|
|
1,544,234 |
|
|
|
1,275,648 |
|
|
1,072,717 |
|
|
|
372,357 |
|
|
Total
mortgage production volume (C) |
$ |
1,464,510 |
|
|
|
$ |
1,530,877 |
|
|
|
$ |
1,947,784 |
|
|
|
$ |
1,879,727 |
|
|
|
$ |
2,495,161 |
|
|
$ |
4,943,171 |
|
|
|
$ |
6,825,363 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Production margin (B / C) |
2.68 |
|
% |
|
2.45 |
|
% |
|
3.66 |
|
% |
|
3.77 |
|
% |
|
3.77 |
|
% |
3.00 |
|
% |
|
3.47 |
|
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
Mortgage Servicing: |
|
|
|
|
|
|
|
|
|
|
|
|
Loans
serviced for others (D) |
$ |
12,720,126 |
|
|
|
$ |
12,307,337 |
|
|
|
$ |
11,530,676 |
|
|
|
$ |
10,833,135 |
|
|
|
$ |
10,139,878 |
|
|
|
|
|
MSRs, at
fair value (E) |
|
133,552 |
|
|
|
|
127,604 |
|
|
|
|
124,316 |
|
|
|
|
92,081 |
|
|
|
|
86,907 |
|
|
|
|
|
Percentage of MSRs to loans serviced for others (E / D) |
1.05 |
|
% |
|
1.04 |
|
% |
|
1.08 |
|
% |
|
0.85 |
|
% |
|
0.86 |
|
% |
|
|
|
Servicing
income |
$ |
10,454 |
|
|
|
$ |
9,830 |
|
|
|
$ |
9,636 |
|
|
|
$ |
9,829 |
|
|
|
$ |
8,118 |
|
|
$ |
29,920 |
|
|
|
$ |
22,057 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Components of MSR: |
|
|
|
|
|
|
|
|
|
|
|
|
MSR -
current period capitalization |
$ |
15,546 |
|
|
|
$ |
17,512 |
|
|
|
$ |
24,616 |
|
|
|
$ |
20,343 |
|
|
|
$ |
20,936 |
|
|
$ |
57,674 |
|
|
|
$ |
50,734 |
|
|
MSR -
collection of expected cash flows - paydowns |
(1,036 |
) |
|
|
(991 |
) |
|
|
(728 |
) |
|
|
(688 |
) |
|
|
(590 |
) |
|
(2,755 |
) |
|
|
(1,556 |
) |
|
MSR -
collection of expected cash flows - payoffs |
(7,558 |
) |
|
|
(7,549 |
) |
|
|
(9,440 |
) |
|
|
(8,335 |
) |
|
|
(7,272 |
) |
|
(24,547 |
) |
|
|
(22,000 |
) |
|
Valuation: |
|
|
|
|
|
|
|
|
|
|
|
|
MSR - changes in fair value model assumptions |
(888 |
) |
|
|
(5,540 |
) |
|
|
18,045 |
|
|
|
(5,223 |
) |
|
|
(3,002 |
) |
|
11,617 |
|
|
|
(25,541 |
) |
|
Gain on derivative contract held as an economic hedge, net |
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
— |
|
|
|
4,749 |
|
|
MSR valuation adjustment, net of gain on derivative contract held
as an economic hedge |
$ |
(888 |
) |
|
|
$ |
(5,540 |
) |
|
|
$ |
18,045 |
|
|
|
$ |
(5,223 |
) |
|
|
$ |
(3,002 |
) |
|
$ |
11,617 |
|
|
|
$ |
(20,792 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Summary of Mortgage Banking Revenue: |
|
|
|
|
|
|
|
|
|
|
|
|
Production revenue (1) |
$ |
39,247 |
|
|
|
$ |
37,531 |
|
|
|
$ |
71,282 |
|
|
|
$ |
70,886 |
|
|
|
$ |
94,148 |
|
|
$ |
148,060 |
|
|
|
$ |
236,908 |
|
|
Servicing
income |
10,454 |
|
|
|
9,830 |
|
|
|
9,636 |
|
|
|
9,829 |
|
|
|
8,118 |
|
|
29,920 |
|
|
|
22,057 |
|
|
MSR
activity |
6,064 |
|
|
|
3,432 |
|
|
|
32,493 |
|
|
|
6,097 |
|
|
|
10,072 |
|
|
41,989 |
|
|
|
6,386 |
|
|
Other |
29 |
|
|
|
(209 |
) |
|
|
83 |
|
|
|
7 |
|
|
|
(3,794 |
) |
|
(97 |
) |
|
|
(6,157 |
) |
|
Total mortgage banking revenue |
$ |
55,794 |
|
|
|
$ |
50,584 |
|
|
|
$ |
113,494 |
|
|
|
$ |
86,819 |
|
|
|
$ |
108,544 |
|
|
$ |
219,872 |
|
|
|
$ |
259,194 |
|
|
(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.
(2) Certain volume adjusted for the estimated
pull-through rate of the loan, which represents the Company’s best
estimate of the likelihood that a committed loan will ultimately
fund.
TABLE 17: NON-INTEREST EXPENSE
|
Three Months Ended |
|
Q3 2021 compared to
Q2 2021 |
|
Q3 2021 compared to
Q3 2020 |
|
Sep 30, |
|
Jun 30, |
|
Mar 31, |
|
Dec 31, |
|
Sep 30, |
|
|
(Dollars in thousands) |
2021 |
|
2021 |
|
2021 |
|
2020 |
|
2020 |
|
$ Change |
|
% Change |
|
$ Change |
|
% Change |
Salaries and employee benefits: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Salaries |
$ |
88,161 |
|
|
|
$ |
91,089 |
|
|
$ |
91,053 |
|
|
|
$ |
93,535 |
|
|
|
$ |
89,849 |
|
|
|
$ |
(2,928 |
) |
|
|
(3 |
) |
% |
|
$ |
(1,688 |
) |
|
|
(2 |
) |
% |
Commissions and incentive compensation |
57,026 |
|
|
|
53,751 |
|
|
61,367 |
|
|
|
52,383 |
|
|
|
48,475 |
|
|
|
3,275 |
|
|
|
6 |
|
|
|
8,551 |
|
|
|
18 |
|
|
Benefits |
25,725 |
|
|
|
27,977 |
|
|
28,389 |
|
|
|
25,198 |
|
|
|
25,718 |
|
|
|
(2,252 |
) |
|
|
(8 |
) |
|
|
7 |
|
|
|
— |
|
|
Total salaries and employee benefits |
170,912 |
|
|
|
172,817 |
|
|
180,809 |
|
|
|
171,116 |
|
|
|
164,042 |
|
|
|
(1,905 |
) |
|
|
(1 |
) |
|
|
6,870 |
|
|
|
4 |
|
|
Software and equipment |
22,029 |
|
|
|
20,866 |
|
|
20,912 |
|
|
|
20,565 |
|
|
|
17,251 |
|
|
|
1,163 |
|
|
|
6 |
|
|
|
4,778 |
|
|
|
28 |
|
|
Operating lease equipment depreciation |
10,013 |
|
|
|
9,949 |
|
|
10,771 |
|
|
|
9,938 |
|
|
|
9,425 |
|
|
|
64 |
|
|
|
1 |
|
|
|
588 |
|
|
|
6 |
|
|
Occupancy, net |
18,158 |
|
|
|
17,687 |
|
|
19,996 |
|
|
|
19,687 |
|
|
|
15,830 |
|
|
|
471 |
|
|
|
3 |
|
|
|
2,328 |
|
|
|
15 |
|
|
Data processing |
7,104 |
|
|
|
6,920 |
|
|
6,048 |
|
|
|
5,728 |
|
|
|
5,689 |
|
|
|
184 |
|
|
|
3 |
|
|
|
1,415 |
|
|
|
25 |
|
|
Advertising and marketing |
13,443 |
|
|
|
11,305 |
|
|
8,546 |
|
|
|
9,850 |
|
|
|
7,880 |
|
|
|
2,138 |
|
|
|
19 |
|
|
|
5,563 |
|
|
|
71 |
|
|
Professional fees |
7,052 |
|
|
|
7,304 |
|
|
7,587 |
|
|
|
6,530 |
|
|
|
6,488 |
|
|
|
(252 |
) |
|
|
(3 |
) |
|
|
564 |
|
|
|
9 |
|
|
Amortization of other intangible assets |
1,877 |
|
|
|
2,039 |
|
|
2,007 |
|
|
|
2,634 |
|
|
|
2,701 |
|
|
|
(162 |
) |
|
|
(8 |
) |
|
|
(824 |
) |
|
|
(31 |
) |
|
FDIC insurance |
6,750 |
|
|
|
6,405 |
|
|
6,558 |
|
|
|
7,016 |
|
|
|
6,772 |
|
|
|
345 |
|
|
|
5 |
|
|
|
(22 |
) |
|
|
— |
|
|
OREO expense, net |
(1,531 |
) |
|
|
769 |
|
|
(251 |
) |
|
|
(114 |
) |
|
|
(168 |
) |
|
|
(2,300 |
) |
|
|
NM |
|
|
|
(1,363 |
) |
|
|
NM |
|
|
Other: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commissions - 3rd party brokers |
884 |
|
|
|
889 |
|
|
846 |
|
|
|
764 |
|
|
|
778 |
|
|
|
(5 |
) |
|
|
(1 |
) |
|
|
106 |
|
|
|
14 |
|
|
Postage |
2,018 |
|
|
|
1,900 |
|
|
1,743 |
|
|
|
1,849 |
|
|
|
1,529 |
|
|
|
118 |
|
|
|
6 |
|
|
|
489 |
|
|
|
32 |
|
|
Miscellaneous |
23,435 |
|
|
|
21,262 |
|
|
21,317 |
|
|
|
26,304 |
|
|
|
26,002 |
|
|
|
2,173 |
|
|
|
10 |
|
|
|
(2,567 |
) |
|
|
(10 |
) |
|
Total other |
26,337 |
|
|
|
24,051 |
|
|
23,906 |
|
|
|
28,917 |
|
|
|
28,309 |
|
|
|
2,286 |
|
|
|
10 |
|
|
|
(1,972 |
) |
|
|
(7 |
) |
|
Total Non-Interest Expense |
$ |
282,144 |
|
|
|
$ |
280,112 |
|
|
$ |
286,889 |
|
|
|
$ |
281,867 |
|
|
|
$ |
264,219 |
|
|
|
$ |
2,032 |
|
|
|
1 |
|
% |
|
$ |
17,925 |
|
|
|
7 |
|
% |
NM - Not meaningful.
|
|
Nine Months Ended |
|
|
|
|
|
Sep 30, |
|
Sep 30, |
$ |
|
% |
(Dollars in thousands) |
|
2021 |
|
2020 |
Change |
|
Change |
Salaries and employee benefits: |
|
|
|
|
|
|
|
Salaries |
|
$ |
270,303 |
|
|
|
$ |
258,240 |
|
|
$ |
12,063 |
|
|
|
5 |
|
% |
Commissions and incentive compensation |
|
172,144 |
|
|
|
126,201 |
|
|
45,943 |
|
|
|
36 |
|
|
Benefits |
|
82,091 |
|
|
|
70,519 |
|
|
11,572 |
|
|
|
16 |
|
|
Total salaries and employee benefits |
|
524,538 |
|
|
|
454,960 |
|
|
69,578 |
|
|
|
15 |
|
|
Software and equipment |
|
63,807 |
|
|
|
47,931 |
|
|
15,876 |
|
|
|
33 |
|
|
Operating lease equipment depreciation |
|
30,733 |
|
|
|
27,977 |
|
|
2,756 |
|
|
|
10 |
|
|
Occupancy, net |
|
55,841 |
|
|
|
50,270 |
|
|
5,571 |
|
|
|
11 |
|
|
Data processing |
|
20,072 |
|
|
|
24,468 |
|
|
(4,396 |
) |
|
|
(18 |
) |
|
Advertising and marketing |
|
33,294 |
|
|
|
26,446 |
|
|
6,848 |
|
|
|
26 |
|
|
Professional fees |
|
21,943 |
|
|
|
20,896 |
|
|
1,047 |
|
|
|
5 |
|
|
Amortization of other intangible assets |
|
5,923 |
|
|
|
8,384 |
|
|
(2,461 |
) |
|
|
(29 |
) |
|
FDIC insurance |
|
19,713 |
|
|
|
17,988 |
|
|
1,725 |
|
|
|
10 |
|
|
OREO expense, net |
|
(1,013 |
) |
|
|
(807 |
) |
|
(206 |
) |
|
|
NM |
|
|
Other: |
|
|
|
|
|
|
|
Commissions - 3rd party brokers |
|
2,619 |
|
|
|
2,350 |
|
|
269 |
|
|
|
11 |
|
|
Postage |
|
5,661 |
|
|
|
5,069 |
|
|
592 |
|
|
|
12 |
|
|
Miscellaneous |
|
66,014 |
|
|
|
72,296 |
|
|
(6,282 |
) |
|
|
(9 |
) |
|
Total other |
|
74,294 |
|
|
|
79,715 |
|
|
(5,421 |
) |
|
|
(7 |
) |
|
Total Non-Interest Expense |
|
$ |
849,145 |
|
|
|
$ |
758,228 |
|
|
$ |
90,917 |
|
|
|
12 |
|
% |
NM - Not meaningful.
TABLE 18: SUPPLEMENTAL NON-GAAP FINANCIAL
MEASURES/RATIOS
The accounting and reporting policies of
Wintrust conform to generally accepted accounting principles
(“GAAP”) in the United States and prevailing practices in the
banking industry. However, certain non-GAAP performance measures
and ratios are used by management to evaluate and measure the
Company’s performance. These include taxable-equivalent net
interest income (including its individual components),
taxable-equivalent net interest margin (including its individual
components), the taxable-equivalent efficiency ratio, tangible
common equity ratio, tangible book value per common share, return
on average tangible common equity, pre-tax income, excluding
provision for credit losses, and pre-tax income, excluding
provision for credit losses, adjusted for net charge-offs.
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,
and pre-tax income, excluding provision for credit losses, adjusted
for net charge-offs, as a useful measurement of the Company’s core
net income.
|
Three Months Ended |
Nine Months Ended |
|
Sep 30, |
|
Jun 30, |
|
Mar 31, |
|
Dec 31, |
|
Sep 30, |
Sep 30, |
|
Sep 30, |
(Dollars and shares in thousands) |
2021 |
|
|
2021 |
|
|
2021 |
|
|
2020 |
|
|
2020 |
|
2021 |
|
2020 |
Reconciliation of Non-GAAP Net Interest Margin and
Efficiency Ratio: |
|
|
|
(A) Interest Income (GAAP) |
$ |
322,457 |
|
|
|
$ |
319,579 |
|
|
$ |
305,469 |
|
|
$ |
307,981 |
|
|
$ |
311,156 |
|
$ |
947,505 |
|
|
$ |
985,039 |
|
|
Taxable-equivalent adjustment: |
|
|
|
|
|
|
|
|
|
|
|
|
- Loans |
411 |
|
|
|
415 |
|
|
384 |
|
|
324 |
|
|
481 |
|
1,210 |
|
|
1,917 |
|
|
- Liquidity Management Assets |
492 |
|
|
|
494 |
|
|
500 |
|
|
530 |
|
|
546 |
|
1,486 |
|
|
1,635 |
|
|
- Other Earning Assets |
— |
|
|
|
— |
|
|
— |
|
|
3 |
|
|
1 |
|
— |
|
|
6 |
|
|
(B) Interest Income (non-GAAP) |
$ |
323,360 |
|
|
|
$ |
320,488 |
|
|
$ |
306,353 |
|
|
$ |
308,838 |
|
|
$ |
312,184 |
|
$ |
950,201 |
|
|
$ |
988,597 |
|
|
(C) Interest Expense (GAAP) |
34,961 |
|
|
|
39,989 |
|
|
43,574 |
|
|
48,584 |
|
|
55,220 |
|
118,524 |
|
|
204,529 |
|
|
(D) Net Interest Income (GAAP) (A minus C) |
$ |
287,496 |
|
|
|
$ |
279,590 |
|
|
$ |
261,895 |
|
|
$ |
259,397 |
|
|
$ |
255,936 |
|
$ |
828,981 |
|
|
$ |
780,510 |
|
|
(E) Net Interest Income (non-GAAP) (B minus
C) |
$ |
288,399 |
|
|
|
$ |
280,499 |
|
|
$ |
262,779 |
|
|
$ |
260,254 |
|
|
$ |
256,964 |
|
$ |
831,677 |
|
|
$ |
784,068 |
|
|
Net interest margin (GAAP) |
2.58 |
|
% |
|
2.62 |
% |
|
2.53 |
% |
|
2.53 |
% |
|
2.56 |
% |
2.58 |
% |
|
2.79 |
|
% |
Net interest margin, fully taxable-equivalent
(non-GAAP) |
2.59 |
|
|
|
2.63 |
|
|
2.54 |
|
|
2.54 |
|
|
2.57 |
|
2.59 |
|
|
2.80 |
|
|
(F) Non-interest income |
$ |
136,474 |
|
|
|
$ |
129,373 |
|
|
$ |
186,506 |
|
|
$ |
158,361 |
|
|
$ |
170,593 |
|
$ |
452,353 |
|
|
$ |
445,828 |
|
|
(G) (Losses) gains on investment securities, net |
(2,431 |
) |
|
|
1,285 |
|
|
1,154 |
|
|
1,214 |
|
|
411 |
|
8 |
|
|
(3,140 |
) |
|
(H) Non-interest expense |
282,144 |
|
|
|
280,112 |
|
|
286,889 |
|
|
281,867 |
|
|
264,219 |
|
849,145 |
|
|
758,228 |
|
|
Efficiency ratio (H/(D+F-G)) |
66.17 |
|
% |
|
68.71 |
% |
|
64.15 |
% |
|
67.67 |
% |
|
62.01 |
% |
66.27 |
% |
|
61.67 |
|
% |
Efficiency ratio (non-GAAP) (H/(E+F-G)) |
66.03 |
|
|
|
68.56 |
|
|
64.02 |
|
|
67.53 |
|
|
61.86 |
|
66.13 |
|
|
61.49 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of Non-GAAP Tangible Common Equity
Ratio: |
|
|
|
Total shareholders’ equity (GAAP) |
$ |
4,410,317 |
|
|
|
|
$ |
4,339,011 |
|
|
|
$ |
4,252,511 |
|
|
|
$ |
4,115,995 |
|
|
|
$ |
4,074,089 |
|
|
|
|
|
Less: Non-convertible preferred stock (GAAP) |
(412,500 |
) |
|
|
|
(412,500 |
) |
|
|
(412,500 |
) |
|
|
(412,500 |
) |
|
|
(412,500 |
) |
|
|
|
|
Less: Intangible assets (GAAP) |
(675,910 |
) |
|
|
|
(678,333 |
) |
|
|
(680,052 |
) |
|
|
(681,747 |
) |
|
|
(683,314 |
) |
|
|
|
|
(I) Total tangible common shareholders’ equity (non-GAAP) |
$ |
3,321,907 |
|
|
|
|
$ |
3,248,178 |
|
|
|
$ |
3,159,959 |
|
|
|
$ |
3,021,748 |
|
|
|
$ |
2,978,275 |
|
|
|
|
|
(J) Total assets (GAAP) |
$ |
47,832,271 |
|
|
|
|
$ |
46,738,450 |
|
|
|
$ |
45,682,202 |
|
|
|
$ |
45,080,768 |
|
|
|
$ |
43,731,718 |
|
|
|
|
|
Less: Intangible assets (GAAP) |
(675,910 |
) |
|
|
|
(678,333 |
) |
|
|
(680,052 |
) |
|
|
(681,747 |
) |
|
|
(683,314 |
) |
|
|
|
|
(K) Total tangible assets (non-GAAP) |
$ |
47,156,361 |
|
|
|
|
$ |
46,060,117 |
|
|
|
$ |
45,002,150 |
|
|
|
$ |
44,399,021 |
|
|
|
$ |
43,048,404 |
|
|
|
|
|
Common equity to assets ratio (GAAP) (L/J) |
8.4 |
|
% |
|
8.4 |
% |
|
8.4 |
% |
|
8.2 |
% |
|
8.4 |
% |
|
|
|
Tangible common equity ratio (non-GAAP) (I/K) |
7.0 |
|
|
|
7.1 |
|
|
7.0 |
|
|
6.8 |
|
|
6.9 |
|
|
|
|
|
Three Months Ended |
Nine Months Ended |
|
Sep 30, |
|
Jun 30, |
|
Mar 31, |
|
Dec 31, |
|
Sep 30, |
Sep 30, |
|
Sep 30, |
(Dollars and shares in thousands) |
2021 |
|
2021 |
|
2021 |
|
2020 |
|
2020 |
2021 |
|
2020 |
Reconciliation of Non-GAAP Tangible Book Value per Common
Share: |
|
|
|
Total shareholders’ equity |
$ |
4,410,317 |
|
|
|
$ |
4,339,011 |
|
|
|
$ |
4,252,511 |
|
|
|
$ |
4,115,995 |
|
|
|
$ |
4,074,089 |
|
|
|
|
|
Less: Preferred stock |
(412,500 |
) |
|
|
(412,500 |
) |
|
|
(412,500 |
) |
|
|
(412,500 |
) |
|
|
(412,500 |
) |
|
|
|
|
(L) Total common equity |
$ |
3,997,817 |
|
|
|
$ |
3,926,511 |
|
|
|
$ |
3,840,011 |
|
|
|
$ |
3,703,495 |
|
|
|
$ |
3,661,589 |
|
|
|
|
|
(M) Actual common shares outstanding |
56,956 |
|
|
|
57,067 |
|
|
|
57,023 |
|
|
|
56,770 |
|
|
|
57,602 |
|
|
|
|
|
Book value per common share (L/M) |
$ |
70.19 |
|
|
|
$ |
68.81 |
|
|
|
$ |
67.34 |
|
|
|
$ |
65.24 |
|
|
|
$ |
63.57 |
|
|
|
|
|
Tangible book value per common share (non-GAAP)
(I/M) |
58.32 |
|
|
|
56.92 |
|
|
|
55.42 |
|
|
|
53.23 |
|
|
|
51.70 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of Non-GAAP Return on Average Tangible
Common Equity: |
|
|
|
(N) Net income applicable to common shares |
$ |
102,146 |
|
|
|
$ |
98,118 |
|
|
|
$ |
146,157 |
|
|
|
$ |
94,213 |
|
|
|
$ |
97,029 |
|
|
$ |
346,421 |
|
|
|
$ |
177,400 |
|
|
Add: Intangible asset amortization |
1,877 |
|
|
|
2,039 |
|
|
|
2,007 |
|
|
|
2,634 |
|
|
|
2,701 |
|
|
5,923 |
|
|
|
8,384 |
|
|
Less: Tax effect of intangible asset amortization |
(509 |
) |
|
|
(553 |
) |
|
|
(522 |
) |
|
|
(656 |
) |
|
|
(589 |
) |
|
(1,576 |
) |
|
|
(2,079 |
) |
|
After-tax intangible asset amortization |
$ |
1,368 |
|
|
|
$ |
1,486 |
|
|
|
$ |
1,485 |
|
|
|
$ |
1,978 |
|
|
|
$ |
2,112 |
|
|
$ |
4,347 |
|
|
|
$ |
6,305 |
|
|
(O) Tangible net income applicable to common shares (non-GAAP) |
$ |
103,514 |
|
|
|
$ |
99,604 |
|
|
|
$ |
147,642 |
|
|
|
$ |
96,191 |
|
|
|
$ |
99,141 |
|
|
$ |
350,768 |
|
|
|
$ |
183,705 |
|
|
Total average shareholders’ equity |
$ |
4,343,915 |
|
|
|
$ |
4,256,778 |
|
|
|
$ |
4,164,890 |
|
|
|
$ |
4,050,286 |
|
|
|
$ |
4,034,902 |
|
|
$ |
4,255,851 |
|
|
|
$ |
3,885,187 |
|
|
Less: Average preferred stock |
(412,500 |
) |
|
|
(412,500 |
) |
|
|
(412,500 |
) |
|
|
(412,500 |
) |
|
|
(412,500 |
) |
|
(412,500 |
) |
|
|
(270,849 |
) |
|
(P) Total average common shareholders’ equity |
$ |
3,931,415 |
|
|
|
$ |
3,844,278 |
|
|
|
$ |
3,752,390 |
|
|
|
$ |
3,637,786 |
|
|
|
$ |
3,622,402 |
|
|
$ |
3,843,351 |
|
|
|
$ |
3,614,338 |
|
|
Less: Average intangible assets |
(677,201 |
) |
|
|
(679,535 |
) |
|
|
(680,805 |
) |
|
|
(682,290 |
) |
|
|
(684,717 |
) |
|
(679,167 |
) |
|
|
(687,331 |
) |
|
(Q) Total average tangible common shareholders’ equity
(non-GAAP) |
$ |
3,254,214 |
|
|
|
$ |
3,164,743 |
|
|
|
$ |
3,071,585 |
|
|
|
$ |
2,955,496 |
|
|
|
$ |
2,937,685 |
|
|
$ |
3,164,184 |
|
|
|
$ |
2,927,007 |
|
|
Return on average common equity, annualized
(N/P) |
10.31 |
|
% |
|
10.24 |
|
% |
|
15.80 |
|
% |
|
10.30 |
|
% |
|
10.66 |
|
% |
12.05 |
|
% |
|
6.56 |
|
% |
Return on average tangible common equity, annualized
(non-GAAP) (O/Q) |
12.62 |
|
|
|
12.62 |
|
|
|
19.49 |
|
|
|
12.95 |
|
|
|
13.43 |
|
|
14.82 |
|
|
|
8.38 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of Non-GAAP Pre-Tax, Pre-Provision Income,
Adjusted for Net Charge-offs: |
|
|
|
|
|
Income before taxes |
$ |
149,742 |
|
|
|
$ |
144,150 |
|
|
|
$ |
206,859 |
|
|
|
$ |
134,711 |
|
|
|
$ |
137,284 |
|
|
$ |
500,751 |
|
|
|
$ |
255,070 |
|
|
Add: Provision for credit losses |
(7,916 |
) |
|
|
(15,299 |
) |
|
|
(45,347 |
) |
|
|
1,180 |
|
|
|
25,026 |
|
|
(68,562 |
) |
|
|
213,040 |
|
|
Pre-tax income, excluding provision for credit losses
(non-GAAP) |
$ |
141,826 |
|
|
|
$ |
128,851 |
|
|
|
$ |
161,512 |
|
|
|
$ |
135,891 |
|
|
|
$ |
162,310 |
|
|
$ |
432,189 |
|
|
|
$ |
468,110 |
|
|
Less: Net charge-offs |
(2 |
) |
|
|
(1,922 |
) |
|
|
(13,345 |
) |
|
|
(10,337 |
) |
|
|
(9,284 |
) |
|
(15,269 |
) |
|
|
(29,972 |
) |
|
Pre-tax income, excluding provision for credit losses,
adjusted for net charge-offs (non-GAAP) |
$ |
141,824 |
|
|
|
$ |
126,929 |
|
|
|
$ |
148,167 |
|
|
|
$ |
125,554 |
|
|
|
$ |
153,026 |
|
|
$ |
416,920 |
|
|
|
$ |
438,138 |
|
|
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, Oak Park, 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, such
as the impacts of the COVID-19 pandemic (including the emergence of
variant strains), 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 Coronavirus
Aid, Relief, and Economic Security Act (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
Wednesday, October 20, 2021 at 11:00 a.m. (Central Time) regarding
third quarter and year-to-date 2021 results. Individuals interested
in listening should call (877) 363-5049 and enter Conference
ID #2695417. A simultaneous audio-only webcast and replay of the
conference call as well as an accompanying slide presentation may
be accessed via the Company’s website at https://www.wintrust.com,
Investor Relations, Investor News and Events,
Presentations & Conference Calls. The text of the third
quarter and year-to-date 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
Wintrust Financial (NASDAQ:WTFC)
Historical Stock Chart
From May 2024 to Jun 2024
Wintrust Financial (NASDAQ:WTFC)
Historical Stock Chart
From Jun 2023 to Jun 2024