ROSEMONT, Ill., Jan. 19, 2022 (GLOBE NEWSWIRE)
-- Wintrust Financial Corporation (“Wintrust”, “the Company”, “we”
or “our”) (Nasdaq: WTFC) announced net income of $98.8 million or
$1.58 per diluted common share for the fourth quarter of 2021, a
decrease in diluted earnings per common share of 11% compared to
the third quarter of 2021. The Company recorded record annual net
income of $466.2 million or $7.58 per diluted common share for the
year ended December 31, 2021 compared to net income of $293.0
million or $4.68 per diluted common share for the same period of
2020.
Highlights of the Fourth Quarter of
2021:
Comparative information to the third quarter of 2021
- Total assets increased by $2.3
billion totaling $50.1 billion as of December 31, 2021.
- Total loans, excluding Paycheck
Protection Program (“PPP”) loans, increased by $2.0 billion, or 25%
on an annualized basis.
- Core loans increased by $908 million and Niche loans increased
by $1.1 billion. Niche loans included $578 million of growth
related to loans acquired in a business combination completed in
the fourth quarter of 2021.
- PPP loans declined by $524 million in the fourth quarter of
2021 primarily as a result of processing forgiveness payments.
- Total deposits increased by $2.1
billion, including a $925 million increase in non-interest bearing
deposits.
- Net interest income increased by
$8.5 million as compared to the third quarter of 2021 as follows:
- Increased $15.5 million primarily due to earning asset growth
and a five basis point decline in deposit costs.
- Decreased by $7.0 million due to $1.7 million less PPP interest
income and $5.3 million less PPP fee income.
- Net interest margin decreased by
four basis points primarily due to increased liquidity which had
approximately a six basis point unfavorable impact.
- However, the rate on interest bearing deposits declined by five
basis points which more than offset a three basis point decline in
loan yields.
- Recorded $6.2 million of net
charge-offs or seven basis points on an annualized basis in the
fourth quarter of 2021 as compared to no material net charge-offs
in the third quarter of 2021.
- Recorded a provision for credit
losses of $9.3 million in the fourth quarter of 2021 as compared to
a negative provision for credit losses of $7.9 million in the third
quarter of 2021. The provision for credit losses in the fourth
quarter of 2021 was primarily due to strong loan growth with
approximately $782,000 of provision for credit losses related to
acquired loans.
- The allowance for credit losses on
our core loan portfolio is approximately 1.33% of the outstanding
balance as of December 31, 2021, down from 1.38% as of September
30, 2021. See Table 12 for more information.
- Non-performing loans decreased to
0.21% of total loans, as of December 31, 2021, down from 0.27% as
of September 30, 2021.
- Mortgage banking revenue decreased
to $53.1 million for the fourth quarter of 2021 as compared to
$55.8 million in the third quarter of 2021.
- Tangible book value per common
share (non-GAAP) increased to $59.64 as compared to $58.32 as of
September 30, 2021. See Table 18 for reconciliation of non-GAAP
measures.
Edward J. Wehmer, Founder and Chief Executive
Officer, commented, "I am extremely proud of the Company’s
performance in 2021 as we celebrated Wintrust’s 30th anniversary by
reporting record annual net income and eclipsing $50 billion in
total assets. The fourth quarter of 2021 was characterized by
significant loan and deposit growth, increased net interest income,
seasonally strong mortgage banking revenue, tangible book value
growth and impressive credit quality metrics. Wintrust reported net
income of $98.8 million for the fourth quarter of 2021, down from
$109.1 million in the third quarter of 2021. On an annual basis,
the Company had record net income totaling $466.2 million in 2021,
up from $293.0 million in 2020. Total assets of $50.1 billion as of
December 31, 2021 increased by $2.3 billion as compared to
September 30, 2021 and increased by $5.1 billion as compared to
December 31, 2020."
Mr. Wehmer continued, "The Company experienced
significant loan growth as loans, excluding PPP loans, increased by
$2.0 billion or 25%, on an annualized basis in the fourth quarter
of 2021. We continue to pick up new market share and grow
organically as all of our material loan portfolios exhibited strong
growth in the fourth quarter of 2021 including our commercial,
commercial real estate, residential real estate loans for
investment, commercial insurance premium finance receivable and
life insurance premium receivable portfolios. In addition, we
completed an acquisition which contributed approximately $578
million of loan growth to the balance sheet. We believe this
portfolio fits well with our existing insurance lending businesses.
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. Further, our loan growth was predominantly in the second
half of the fourth quarter of 2021 as loans as of December 31, 2021
were $1.1 billion higher than average total loans in the fourth
quarter of 2021. Total deposits increased by $2.1 billion as
compared to the third 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 82.6% and we believe that we have sufficient liquidity
to meet customer loan demand."
Mr. Wehmer commented, "Net interest income
increased by $8.5 million in the fourth quarter of 2021 primarily
due to earning asset growth and a decline in deposit costs. We
believe that we have managed to optimize our cost of funds and
successfully grown through this challenging interest rate cycle.
Additionally, we have been prudent and measured in our approach to
deploying liquidity into investment securities and we expect to
expand our securities portfolio in 2022 to further enhance net
interest income as available market returns improve. Net interest
margin decreased by four basis points in the fourth quarter of 2021
as compared to the third quarter of 2021 primarily due to increased
liquidity which had approximately a six basis point unfavorable
impact. Excluding the unfavorable net interest margin impact from
increased liquidity, the margin exhibited improvement as the rate
on deposits declined five basis points as compared to a three basis
point decline in loan yields."
Mr. Wehmer stated, “We have maintained our asset
sensitive interest rate position which we expect to benefit us as
short term interest rates rise. Based on modeled contractual cash
flows, including prepayment assumptions, approximately 80% of our
current loan balances are projected to reprice or mature in 2022.
We project that, assuming an immediate and parallel 25 basis point
rate hike, the cumulative increase to net interest income in the
subsequent 12 months is approximately $40-$50 million. Such
projections incorporate a number of assumptions and could differ
materially depending on various factors including competition and
the macroeconomic environment.”
Mr. Wehmer noted, “We recorded mortgage banking
revenue of $53.1 million in the fourth quarter of 2021 as compared
to $55.8 million in the third quarter of 2021. Loan volumes
originated for sale in the fourth quarter of 2021 were $1.3
billion, down from $1.6 billion in the third quarter of 2021.
Additionally, the Company recorded a $6.7 million increase in the
value of mortgage servicing rights related to changes in fair value
model assumptions as compared to an $888,000 decrease recognized in
the third quarter of 2021. We are focused on expanding our market
share of purchase originations understanding that refinance volumes
may be pressured in a rising rate environment. Based on current
market conditions, and excluding the impact of MSR valuation
adjustments, we expect that mortgage banking revenue in the first
quarter of 2022 will remain relatively similar to the level
recorded in the fourth quarter of 2021.”
Commenting on credit quality, Mr. Wehmer stated,
"The Company has reached a record low level of non-performing loans
of 0.21% of total loans, as of December 31, 2021. During the fourth
quarter of 2021, we continued our practice of pursuing the
resolution of non-performing credits and executed a loan sale that
reduced non-performing loans by approximately $10 million resulting
in $1.8 million of net charge-offs. The fourth quarter of 2021
demonstrated another benign quarter of net charge-offs at $6.2
million following the third quarter of 2021 which had no material
net charge-offs. The Company recorded a provision for credit losses
of $9.3 million in the fourth quarter of 2021 primarily due to
significant loan growth. The allowance for credit losses on our
core loan portfolio as of December 31, 2021 is approximately 1.33%
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 fourth 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 intend to
be prudent in our decision-making, always seeking to minimize
dilution.”
The graphs below illustrate certain financial
highlights of the fourth 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/f8ba0f96-41dd-4f04-a9bf-8082be4c0600
SUMMARY OF RESULTS:
BALANCE SHEET
Total asset growth of $2.3 billion in the fourth
quarter of 2021 was primarily comprised of a $1.5 billion increase
in total loans and a $1.0 billion increase in liquidity management
assets partially offset by a $107 million decline in mortgage loans
held-for-sale. Total loans, excluding PPP loans, increased by $2.0
billion as core loans increased by $908 million and niche loans
increased by $1.1 billion, partially offset by a $524 million
decline in PPP loans. See Table 1 for more information. Niche loans
included $578 million of growth related to loans acquired in a
business combination completed in the fourth quarter of 2021. As of
December 31, 2021, virtually all of PPP loan balances originated in
2020 were forgiven with only $74 million remaining on balance sheet
of which nearly all are in the forgiveness process. Whereas, as of
December 31, 2021, approximately 64% of PPP loan balances
originated in 2021 were forgiven, 14% are in the forgiveness review
or submission process and 22% have yet to apply for
forgiveness.
Total liabilities increased $2.2 billion in the
fourth quarter of 2021 resulting primarily from a $2.1 billion
increase in total deposits. The increase in deposits was primarily
due to a $925 million increase in non-interest bearing deposits and
a $692 million increase in money market deposits. The Company's
loans to deposits ratio ended the quarter at 82.6%. Management
believes in substantially funding the Company's balance sheet with
core deposits and utilizes brokered or wholesale funding sources on
a limited basis to manage its liquidity position as well as for
interest rate risk management purposes.
For more information regarding changes in the
Company’s balance sheet, see Consolidated Statements of Condition
and Tables 1 through 3 in this report.
NET INTEREST INCOME
For the fourth quarter of 2021, net interest
income totaled $296.0 million, an increase of $8.5 million as
compared to the third quarter of 2021. The $8.5 million increase in
net interest income in the fourth quarter of 2021 compared to the
third 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 $7.0 million due to $1.7
million less PPP interest income and $5.3 million less PPP fee
income. As of December 31, 2021, the Company had
approximately $12.7 million of net PPP loan fees that have yet to
be recognized in income.
Net interest margin was 2.54% (2.55% on a fully
taxable-equivalent basis, non-GAAP) during the fourth quarter of
2021 compared to 2.58% (2.59% on a fully taxable-equivalent basis,
non-GAAP) during the third quarter of 2021. The net interest margin
decrease as compared to the prior quarter was primarily due to the
seven basis point decrease in yield on earning assets and three
basis point decrease in the net free funds contribution partially
offset by a six basis point decrease in the rate paid on
interest-bearing liabilities. The decrease in the rate paid on
interest-bearing liabilities in the fourth quarter of 2021 as
compared to the third quarter of 2021 is primarily due to a five
basis point decrease in the rate paid on interest-bearing deposits
primarily due to lower repricing of time deposits. The seven basis
point decrease in the yield on earning assets in the fourth quarter
of 2021 as compared to the third quarter of 2021 was primarily due
to a shift in earning asset mix with increasing levels of lower
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 $299.7
million as of December 31, 2021, an increase of $3.6 million
as compared to $296.1 million as of September 30, 2021. The
allowance for credit losses increased primarily due to growth in
the loan portfolio and was partially offset by improvement in
macroeconomic factors. A provision for credit losses totaling $9.3
million was recorded for the fourth quarter of 2021 as compared to
a negative provision of $7.9 million for the third quarter of 2021.
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
December 31, 2021, September 30, 2021, and June 30,
2021 is shown on Table 12 of this report.
Net charge-offs totaled $6.2 million in the
fourth quarter of 2021, as compared to no material net charge-offs
in the third quarter of 2021. Net charge-offs as a percentage of
average total loans were reported as seven basis points in the
fourth quarter of 2021 on an annualized basis compared to zero
basis points on an annualized basis in the third quarter of 2021.
For more information regarding net charge-offs, see Table 10 in
this report.
As of December 31, 2021, $53.7 million of
all loans, or 0.2%, were 60 to 89 days past due and $187.4 million,
or 0.5%, were 30 to 59 days (or one payment) past due. 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. Many of the commercial and
commercial real-estate loans shown as 60 to 89 days and 30 to 59
days past due are included on the Company’s internal problem loan
reporting system. Loans on this system are closely monitored by
management on a monthly basis.
The Company’s home equity and residential real
estate loan portfolios continue to exhibit low delinquency rates as
of December 31, 2021. Home equity loans at December 31,
2021 that are current with regard to the contractual terms of the
loan agreement represent 98.9% of the total home equity portfolio.
Residential real estate loans at December 31, 2021 that are
current with regards to the contractual terms of the loan
agreements comprised 98.2% of total residential real estate loans
outstanding. For more information regarding past due loans, see
Table 13 in this report.
The ratio of non-performing assets to total
assets was 0.16% as of December 31, 2021, compared to 0.22% at
September 30, 2021. Non-performing assets totaled $78.7
million at December 31, 2021, compared to $103.9 million at
September 30, 2021. Non-performing loans totaled $74.4
million, or 0.21% of total loans, at December 31, 2021
compared to $90.0 million, or 0.27% of total loans, at
September 30, 2021. Other real estate owned (“OREO”) totaled
$4.3 million at December 31, 2021, a decrease of $9.6 million
compared to $13.8 million at September 30, 2021. Management is
pursuing the resolution of all non-performing assets. At this time,
management believes OREO is appropriately valued at the lower of
carrying value or fair value less estimated costs to sell. For more
information regarding non-performing assets, see Table 14 in this
report.
NON-INTEREST INCOME
Wealth management revenue increased by $1.0
million during the fourth quarter of 2021 as compared to the third
quarter of 2021 primarily due to increased trust and asset
management fees. Wealth management revenue is comprised of the
trust and asset management revenue of The Chicago Trust Company and
Great Lakes Advisors, the brokerage commissions, managed money fees
and insurance product commissions at Wintrust Investments and fees
from tax-deferred like-kind exchange services provided by the
Chicago Deferred Exchange Company.
Mortgage banking revenue decreased by $2.7
million in the fourth quarter of 2021 as compared to the third
quarter of 2021, primarily due to an $11.1 million decline in
production revenue. This decrease was partially offset by a $6.7
million favorable mortgage servicing rights portfolio fair value
adjustment as compared to an $888,000 decrease recognized in the
prior quarter. Loans originated for sale were $1.3 billion in
the fourth quarter of 2021, a decrease of $260 million as compared
to the third quarter of 2021. The percentage of origination volume
from refinancing activities was 48% in the fourth quarter of 2021
as compared to 44% in the third 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 fourth quarter of 2021, the fair
value of the mortgage servicing rights portfolio increased
primarily due to the capitalization of $15.1 million of servicing
rights and a fair value adjustment increase of $6.7 million.
These increases were partially offset by a reduction in value of
$7.5 million due to payoffs and paydowns of the existing
portfolio.
The Company recognized net losses on investment
securities of $1.1 million in the fourth quarter of 2021 as
compared to net losses of $2.4 million recognized in the third
quarter of 2021.
Net operating lease income totaled $14.2 million
in the fourth quarter of 2021 as compared to $12.8 million in the
prior quarter. The $1.4 million increase in the fourth
quarter of 2021 is primarily attributable to increased gains on
sale of lease assets as compared to the third quarter of 2021.
Other non-interest income decreased by $4.5
million in the fourth quarter of 2021 as compared to the third
quarter of 2021 primarily due to a $3.7 million decrease in
income on partnership investments.
For more information regarding non-interest
income, see Tables 15 and 16 in this report.
NON-INTEREST EXPENSE
Salaries and employee benefits expense decreased
by $3.8 million in the fourth quarter of 2021 as compared to the
third quarter of 2021. The $3.8 million decline is primarily
related to lower incentive compensation expense and lower
commissions expense due to declining mortgage production, partially
offset by increased staffing expense as the company grows.
Software and equipment expense totaled $23.7
million in the fourth quarter of 2021, an increase of $1.7 million
as compared to the third quarter of 2021. The increase in the
fourth quarter of 2021 is primarily due to accelerated depreciation
related to the reduction in the useful life of a software asset
that is planned to be replaced as we continue to make upgrades to
our digital customer experience.
The Company recorded a net OREO gain of $641,000
in the fourth quarter of 2021 as compared to a net gain of $1.5
million in the third quarter of 2021. The net gains are
primarily attributable to the sale of OREO properties during the
third and fourth quarter of 2021.
Miscellaneous expense in the fourth quarter of
2021 increased by $864,000 as compared to the third quarter of
2021. Miscellaneous expense 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 $38.3
million in the fourth quarter of 2021 compared to $40.6 million in
the third quarter of 2021. The effective tax rates were 27.94% in
the fourth quarter of 2021 compared to 27.12% in the third quarter
of 2021.
BUSINESS UNIT SUMMARY
Community Banking
Through its community banking unit, the Company
provides banking and financial services primarily to individuals,
small to mid-sized businesses, local governmental units and
institutional clients residing primarily in the local areas the
Company services. In the fourth quarter of 2021, this unit expanded
its loan portfolio and its deposit portfolio. The segment’s net
interest income increased in the fourth quarter of 2021 as compared
to the third quarter of 2021 primarily due to growth in earning
assets despite a net interest margin decrease primarily due to
increased liquidity.
Mortgage banking revenue was $53.1 million for
the fourth quarter of 2021, a decrease of $2.7 million as compared
to the third quarter of 2021. Service charges on deposit accounts
totaled $14.7 million in the fourth quarter of 2021, an increase of
$585,000 as compared to the third quarter of 2021 primarily due to
higher fees associated with commercial account activity. The
Company’s gross commercial and commercial real estate loan
pipelines remained strong as of December 31, 2021. Before the
impact of scheduled payments and prepayments, gross commercial and
commercial real estate loan pipelines were estimated to be
approximately $1.1 billion to $1.3 billion at December 31,
2021. When adjusted for the probability of closing, the pipelines
were estimated to be approximately $700 million to $800 million at
December 31, 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 $3.6 billion during
the fourth quarter of 2021 and average balances increased by $386.3
million as compared to the third quarter of 2021. The increase in
average balances in the insurance premium finance receivables
portfolios primarily generated a $2.1 million increase in interest
income. The Company’s leasing portfolio increased in the fourth
quarter of 2021, with its portfolio of assets, including capital
leases, loans and equipment on operating leases, at $2.4 billion at
the end of the fourth quarter of 2021 as compared to $2.3 billion
at the end of third quarter of 2021. Revenues from the Company’s
out-sourced administrative services business were $1.8 million in
the fourth quarter of 2021, up $487,000 from the third 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 $32.5 million in the
fourth quarter of 2021, an increase of $1.0 million compared to the
third quarter of 2021. Increases in asset management fees were
primarily due to favorable equity market performance during the
fourth quarter of 2021. At December 31, 2021, the Company’s
wealth management subsidiaries had approximately $35.5 billion of
assets under administration, which included $5.3 billion of assets
owned by the Company and its subsidiary banks, representing a
$963.9 million increase from the $34.5 billion of assets under
administration at September 30, 2021.
ITEMS IMPACTING COMPARATIVE FINANCIAL
RESULTS
Acquisitions
On November 15, 2021, the Company completed its
previously-announced purchase of loans with a fair value of
approximately $582 million, net of allowance for credit losses
measured on the acquisition date, from the Allstate Corporation.
The loan portfolio was comprised of approximately 1,800 loans to
Allstate agents nationally. In addition to acquiring the loans, the
Company became the national preferred provider of loans to Allstate
agents. In connection with the loan acquisition, a team of Allstate
agency lending specialists joined the Company, to augment and
expand Wintrust’s existing insurance agency finance business. As
the transaction was determined to be a business combination, the
Company recorded goodwill of approximately $9.3 million on the
purchase.
WINTRUST FINANCIAL CORPORATION
Key
Operating Measures
Wintrust’s key operating measures and growth
rates for the fourth quarter of 2021, as compared to the third
quarter of 2021 (sequential quarter) and fourth quarter of 2020
(linked quarter), are shown in the table below:
|
|
|
|
|
|
|
% or(1)
basis point
(bp) change
from
3rd Quarter
2021 |
|
% or
basis point
(bp) change
from
4th Quarter
2020 |
|
|
Three Months Ended |
|
(Dollars in thousands, except per share data) |
|
Dec 31, 2021 |
|
Sep 30, 2021 |
|
Dec 31, 2020 |
|
Net income |
|
$ |
98,757 |
|
|
$ |
109,137 |
|
|
$ |
101,204 |
|
(10 |
) |
% |
|
(2 |
) |
% |
Pre-tax
income, excluding provision for credit losses (non-GAAP)
(2) |
|
|
146,344 |
|
|
|
141,826 |
|
|
|
135,891 |
|
3 |
|
|
|
8 |
|
|
Net
income per common share – diluted |
|
|
1.58 |
|
|
|
1.77 |
|
|
|
1.63 |
|
(11 |
) |
|
|
(3 |
) |
|
Cash
dividends declared per common share |
|
|
0.31 |
|
|
|
0.31 |
|
|
|
0.28 |
|
— |
|
|
|
11 |
|
|
Net
revenue (3) |
|
|
429,743 |
|
|
|
423,970 |
|
|
|
417,758 |
|
1 |
|
|
|
3 |
|
|
Net
interest income |
|
|
295,976 |
|
|
|
287,496 |
|
|
|
259,397 |
|
3 |
|
|
|
14 |
|
|
Net
interest margin |
|
|
2.54 |
% |
|
|
2.58 |
% |
|
|
2.53 |
% |
(4 |
) |
bps |
|
1 |
|
bps |
Net
interest margin – fully taxable-equivalent (non-GAAP)
(2) |
|
|
2.55 |
|
|
|
2.59 |
|
|
|
2.54 |
|
(4 |
) |
|
|
1 |
|
|
Net
overhead ratio (4) |
|
|
1.21 |
|
|
|
1.22 |
|
|
|
1.12 |
|
(1 |
) |
|
|
9 |
|
|
Return on
average assets |
|
|
0.80 |
|
|
|
0.92 |
|
|
|
0.92 |
|
(12 |
) |
|
|
(12 |
) |
|
Return on
average common equity |
|
|
9.05 |
|
|
|
10.31 |
|
|
|
10.30 |
|
(126 |
) |
|
|
(125 |
) |
|
Return on average tangible common equity (non-GAAP)
(2) |
|
|
11.04 |
|
|
|
12.62 |
|
|
|
12.95 |
|
(158 |
) |
|
|
(191 |
) |
|
At end of period |
|
|
|
|
|
|
|
|
|
|
|
Total
assets |
|
$ |
50,142,143 |
|
|
$ |
47,832,271 |
|
|
$ |
45,080,768 |
|
19 |
|
% |
|
11 |
|
% |
Total
loans (5) |
|
|
34,789,104 |
|
|
|
33,264,043 |
|
|
|
32,079,073 |
|
18 |
|
|
|
8 |
|
|
Total
deposits |
|
|
42,095,585 |
|
|
|
39,952,558 |
|
|
|
37,092,651 |
|
21 |
|
|
|
13 |
|
|
Total shareholders’ equity |
|
|
4,498,688 |
|
|
|
4,410,317 |
|
|
|
4,115,995 |
|
8 |
|
|
|
9 |
|
|
(1) Period-end balance sheet percentage changes are
annualized.
(2) See “Supplemental Non-GAAP
Financial Measures/Ratios” at Table 18 for additional information
on this performance measure/ratio.
(3) Net
revenue is net interest income plus non-interest
income.
(4) The net overhead ratio is
calculated by netting total non-interest expense and total
non-interest income, annualizing this amount, and dividing by that
period’s average total assets. A lower ratio indicates a higher
degree of efficiency.
(5) Excludes mortgage
loans held-for-sale.
Certain returns, yields, performance ratios, or
quarterly growth rates are “annualized” in this presentation to
represent an annual time period. This is done for analytical
purposes to better discern, for decision-making purposes,
underlying performance trends when compared to full-year or
year-over-year amounts. For example, a 5% growth rate for a quarter
would represent an annualized 20% growth rate. Additional
supplemental financial information showing quarterly trends can be
found on the Company’s website at www.wintrust.com by
choosing “Financial Reports” under the “Investor Relations”
heading, and then choosing “Financial Highlights.”
WINTRUST FINANCIAL CORPORATION
Selected Financial Highlights
|
|
Three Months Ended |
Years Ended |
(Dollars in thousands, except per share data) |
|
Dec 31,
2021 |
|
Sep 30,
2021 |
|
Jun 30,
2021 |
|
Mar 31,
2021 |
|
Dec 31,
2020 |
Dec 31,
2021 |
|
Dec 31,
2020 |
Selected Financial Condition Data (at end of
period): |
|
|
|
Total
assets |
|
$ |
50,142,143 |
|
|
$ |
47,832,271 |
|
|
$ |
46,738,450 |
|
|
$ |
45,682,202 |
|
|
$ |
45,080,768 |
|
|
|
|
Total
loans (1) |
|
|
34,789,104 |
|
|
|
33,264,043 |
|
|
|
32,911,187 |
|
|
|
33,171,233 |
|
|
|
32,079,073 |
|
|
|
|
Total
deposits |
|
|
42,095,585 |
|
|
|
39,952,558 |
|
|
|
38,804,616 |
|
|
|
37,872,652 |
|
|
|
37,092,651 |
|
|
|
|
Total shareholders’ equity |
|
|
4,498,688 |
|
|
|
4,410,317 |
|
|
|
4,339,011 |
|
|
|
4,252,511 |
|
|
|
4,115,995 |
|
|
|
|
Selected Statements of Income Data: |
|
|
|
Net interest income |
|
$ |
295,976 |
|
|
$ |
287,496 |
|
|
$ |
279,590 |
|
|
$ |
261,895 |
|
|
$ |
259,397 |
|
$ |
1,124,957 |
|
|
$ |
1,039,907 |
|
Net
revenue (2) |
|
|
429,743 |
|
|
|
423,970 |
|
|
|
408,963 |
|
|
|
448,401 |
|
|
|
417,758 |
|
|
1,711,077 |
|
|
|
1,644,096 |
|
Net
income |
|
|
98,757 |
|
|
|
109,137 |
|
|
|
105,109 |
|
|
|
153,148 |
|
|
|
101,204 |
|
|
466,151 |
|
|
|
292,990 |
|
Pre-tax
income, excluding provision for credit losses (non-GAAP)
(3) |
|
|
146,344 |
|
|
|
141,826 |
|
|
|
128,851 |
|
|
|
161,512 |
|
|
|
135,891 |
|
|
578,533 |
|
|
|
604,001 |
|
Net
income per common share – Basic |
|
|
1.61 |
|
|
|
1.79 |
|
|
|
1.72 |
|
|
|
2.57 |
|
|
|
1.64 |
|
|
7.69 |
|
|
|
4.72 |
|
Net
income per common share – Diluted |
|
|
1.58 |
|
|
|
1.77 |
|
|
|
1.70 |
|
|
|
2.54 |
|
|
|
1.63 |
|
|
7.58 |
|
|
|
4.68 |
|
Cash dividends declared per common share |
|
|
0.31 |
|
|
|
0.31 |
|
|
|
0.31 |
|
|
|
0.31 |
|
|
|
0.28 |
|
|
1.24 |
|
|
|
1.12 |
|
Selected Financial Ratios and Other Data: |
|
|
|
Performance Ratios: |
|
|
|
Net
interest margin |
|
|
2.54 |
% |
|
|
2.58 |
% |
|
|
2.62 |
% |
|
|
2.53 |
% |
|
|
2.53 |
% |
|
2.57 |
% |
|
|
2.72 |
% |
Net
interest margin – fully taxable-equivalent (non-GAAP)
(3) |
|
|
2.55 |
|
|
|
2.59 |
|
|
|
2.63 |
|
|
|
2.54 |
|
|
|
2.54 |
|
|
2.58 |
|
|
|
2.73 |
|
Non-interest income to average assets |
|
|
1.08 |
|
|
|
1.15 |
|
|
|
1.13 |
|
|
|
1.68 |
|
|
|
1.44 |
|
|
1.25 |
|
|
|
1.46 |
|
Non-interest expense to average assets |
|
|
2.29 |
|
|
|
2.37 |
|
|
|
2.45 |
|
|
|
2.59 |
|
|
|
2.56 |
|
|
2.42 |
|
|
|
2.51 |
|
Net
overhead ratio (4) |
|
|
1.21 |
|
|
|
1.22 |
|
|
|
1.32 |
|
|
|
0.90 |
|
|
|
1.12 |
|
|
1.17 |
|
|
|
1.05 |
|
Return on
average assets |
|
|
0.80 |
|
|
|
0.92 |
|
|
|
0.92 |
|
|
|
1.38 |
|
|
|
0.92 |
|
|
1.00 |
|
|
|
0.71 |
|
Return on
average common equity |
|
|
9.05 |
|
|
|
10.31 |
|
|
|
10.24 |
|
|
|
15.80 |
|
|
|
10.30 |
|
|
11.27 |
|
|
|
7.50 |
|
Return on
average tangible common equity (non-GAAP) (3) |
|
|
11.04 |
|
|
|
12.62 |
|
|
|
12.62 |
|
|
|
19.49 |
|
|
|
12.95 |
|
|
13.83 |
|
|
|
9.54 |
|
Average
total assets |
|
$ |
49,118,777 |
|
|
$ |
47,192,510 |
|
|
$ |
45,946,751 |
|
|
$ |
44,988,733 |
|
|
$ |
43,810,005 |
|
$ |
46,824,051 |
|
|
$ |
41,371,339 |
|
Average
total shareholders’ equity |
|
|
4,433,953 |
|
|
|
4,343,915 |
|
|
|
4,256,778 |
|
|
|
4,164,890 |
|
|
|
4,050,286 |
|
|
4,300,742 |
|
|
|
3,926,688 |
|
Average
loans to average deposits ratio |
|
|
81.7 |
% |
|
|
83.8 |
% |
|
|
86.7 |
% |
|
|
87.1 |
% |
|
|
87.9 |
% |
|
84.7 |
% |
|
|
88.8 |
% |
Period-end loans to deposits ratio |
|
|
82.6 |
|
|
|
83.3 |
|
|
|
84.8 |
|
|
|
87.6 |
|
|
|
86.5 |
|
|
|
|
Common Share Data at end of period: |
|
|
|
Market
price per common share |
|
$ |
90.82 |
|
|
$ |
80.37 |
|
|
$ |
75.63 |
|
|
$ |
75.80 |
|
|
$ |
61.09 |
|
|
|
|
Book
value per common share |
|
|
71.62 |
|
|
|
70.19 |
|
|
|
68.81 |
|
|
|
67.34 |
|
|
|
65.24 |
|
|
|
|
Tangible
book value per common share (non-GAAP) (3) |
|
|
59.64 |
|
|
|
58.32 |
|
|
|
56.92 |
|
|
|
55.42 |
|
|
|
53.23 |
|
|
|
|
Common shares outstanding |
|
|
57,054,091 |
|
|
|
56,956,026 |
|
|
|
57,066,677 |
|
|
|
57,023,273 |
|
|
|
56,769,625 |
|
|
|
|
Other
Data at end of period: |
|
|
|
Tier 1
leverage ratio (5) |
|
|
8.0 |
% |
|
|
8.1 |
% |
|
|
8.2 |
% |
|
|
8.2 |
% |
|
|
8.1 |
% |
|
|
|
Risk-based capital ratios: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Tier 1
capital ratio (5) |
|
|
9.6 |
|
|
|
9.9 |
|
|
|
10.1 |
|
|
|
10.2 |
|
|
|
10.0 |
|
|
|
|
Common
equity tier 1 capital ratio (5) |
|
|
8.5 |
|
|
|
8.9 |
|
|
|
9.0 |
|
|
|
9.0 |
|
|
|
8.8 |
|
|
|
|
Total
capital ratio (5) |
|
|
11.6 |
|
|
|
12.1 |
|
|
|
12.4 |
|
|
|
12.6 |
|
|
|
12.6 |
|
|
|
|
Allowance
for credit losses (6) |
|
$ |
299,731 |
|
|
$ |
296,138 |
|
|
$ |
304,121 |
|
|
$ |
321,308 |
|
|
$ |
379,969 |
|
|
|
|
Allowance
for loan and unfunded lending-related commitment losses to total
loans |
|
|
0.86 |
% |
|
|
0.89 |
% |
|
|
0.92 |
% |
|
|
0.97 |
% |
|
|
1.18 |
% |
|
|
|
Number
of: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Bank subsidiaries |
|
|
15 |
|
|
|
15 |
|
|
|
15 |
|
|
|
15 |
|
|
|
15 |
|
|
|
|
Banking offices |
|
|
173 |
|
|
|
172 |
|
|
|
172 |
|
|
|
182 |
|
|
|
181 |
|
|
|
|
(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 average total 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) |
|
|
|
|
Dec 31, |
|
Sep 30, |
|
Jun 30, |
|
Mar 31, |
|
Dec 31, |
(In thousands) |
|
|
2021 |
|
|
|
2021 |
|
|
|
2021 |
|
|
|
2021 |
|
|
|
2020 |
|
Assets |
|
|
|
|
|
|
|
|
|
|
Cash and
due from banks |
|
$ |
411,150 |
|
|
$ |
462,244 |
|
|
$ |
434,957 |
|
|
$ |
426,325 |
|
|
$ |
322,415 |
|
Federal
funds sold and securities purchased under resale agreements |
|
|
700,055 |
|
|
|
55 |
|
|
|
52 |
|
|
|
52 |
|
|
|
59 |
|
Interest-bearing deposits with banks |
|
|
5,372,603 |
|
|
|
5,232,315 |
|
|
|
4,707,415 |
|
|
|
3,348,794 |
|
|
|
4,802,527 |
|
Available-for-sale securities, at fair value |
|
|
2,327,793 |
|
|
|
2,373,478 |
|
|
|
2,188,608 |
|
|
|
2,430,749 |
|
|
|
3,055,839 |
|
Held-to-maturity securities, at amortized cost |
|
|
2,942,285 |
|
|
|
2,736,722 |
|
|
|
2,498,232 |
|
|
|
2,166,419 |
|
|
|
579,138 |
|
Trading
account securities |
|
|
1,061 |
|
|
|
1,103 |
|
|
|
2,667 |
|
|
|
951 |
|
|
|
671 |
|
Equity
securities with readily determinable fair value |
|
|
90,511 |
|
|
|
88,193 |
|
|
|
86,316 |
|
|
|
90,338 |
|
|
|
90,862 |
|
Federal
Home Loan Bank and Federal Reserve Bank stock |
|
|
135,378 |
|
|
|
135,408 |
|
|
|
136,625 |
|
|
|
135,881 |
|
|
|
135,588 |
|
Brokerage
customer receivables |
|
|
26,068 |
|
|
|
26,378 |
|
|
|
23,093 |
|
|
|
19,056 |
|
|
|
17,436 |
|
Mortgage
loans held-for-sale |
|
|
817,912 |
|
|
|
925,312 |
|
|
|
984,994 |
|
|
|
1,260,193 |
|
|
|
1,272,090 |
|
Loans,
net of unearned income |
|
|
34,789,104 |
|
|
|
33,264,043 |
|
|
|
32,911,187 |
|
|
|
33,171,233 |
|
|
|
32,079,073 |
|
Allowance
for loan losses |
|
|
(247,835 |
) |
|
|
(248,612 |
) |
|
|
(261,089 |
) |
|
|
(277,709 |
) |
|
|
(319,374 |
) |
Net loans |
|
|
34,541,269 |
|
|
|
33,015,431 |
|
|
|
32,650,098 |
|
|
|
32,893,524 |
|
|
|
31,759,699 |
|
Premises,
software and equipment, net |
|
|
766,405 |
|
|
|
748,872 |
|
|
|
752,375 |
|
|
|
760,522 |
|
|
|
768,808 |
|
Lease
investments, net |
|
|
242,082 |
|
|
|
243,933 |
|
|
|
219,023 |
|
|
|
238,984 |
|
|
|
242,434 |
|
Accrued
interest receivable and other assets |
|
|
1,084,115 |
|
|
|
1,166,917 |
|
|
|
1,185,811 |
|
|
|
1,230,362 |
|
|
|
1,351,455 |
|
Trade
date securities receivable |
|
|
— |
|
|
|
— |
|
|
|
189,851 |
|
|
|
— |
|
|
|
— |
|
Goodwill |
|
|
655,149 |
|
|
|
645,792 |
|
|
|
646,336 |
|
|
|
646,017 |
|
|
|
645,707 |
|
Other
acquisition-related intangible assets |
|
|
28,307 |
|
|
|
30,118 |
|
|
|
31,997 |
|
|
|
34,035 |
|
|
|
36,040 |
|
Total assets |
|
$ |
50,142,143 |
|
|
$ |
47,832,271 |
|
|
$ |
46,738,450 |
|
|
$ |
45,682,202 |
|
|
$ |
45,080,768 |
|
Liabilities and Shareholders’ Equity |
|
|
|
|
|
|
|
|
|
|
Deposits: |
|
|
|
|
|
|
|
|
|
|
Non-interest-bearing |
|
$ |
14,179,980 |
|
|
$ |
13,255,417 |
|
|
$ |
12,796,110 |
|
|
$ |
12,297,337 |
|
|
$ |
11,748,455 |
|
Interest-bearing |
|
|
27,915,605 |
|
|
|
26,697,141 |
|
|
|
26,008,506 |
|
|
|
25,575,315 |
|
|
|
25,344,196 |
|
Total deposits |
|
|
42,095,585 |
|
|
|
39,952,558 |
|
|
|
38,804,616 |
|
|
|
37,872,652 |
|
|
|
37,092,651 |
|
Federal
Home Loan Bank advances |
|
|
1,241,071 |
|
|
|
1,241,071 |
|
|
|
1,241,071 |
|
|
|
1,228,436 |
|
|
|
1,228,429 |
|
Other
borrowings |
|
|
494,136 |
|
|
|
504,527 |
|
|
|
518,493 |
|
|
|
516,877 |
|
|
|
518,928 |
|
Subordinated notes |
|
|
436,938 |
|
|
|
436,811 |
|
|
|
436,719 |
|
|
|
436,595 |
|
|
|
436,506 |
|
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 |
|
|
1,122,159 |
|
|
|
1,032,073 |
|
|
|
1,144,974 |
|
|
|
1,120,570 |
|
|
|
1,233,786 |
|
Total liabilities |
|
|
45,643,455 |
|
|
|
43,421,954 |
|
|
|
42,399,439 |
|
|
|
41,429,691 |
|
|
|
40,964,773 |
|
Shareholders’ Equity: |
|
|
|
|
|
|
|
|
|
|
Preferred stock |
|
|
412,500 |
|
|
|
412,500 |
|
|
|
412,500 |
|
|
|
412,500 |
|
|
|
412,500 |
|
Common stock |
|
|
58,892 |
|
|
|
58,794 |
|
|
|
58,770 |
|
|
|
58,727 |
|
|
|
58,473 |
|
Surplus |
|
|
1,685,572 |
|
|
|
1,674,062 |
|
|
|
1,669,002 |
|
|
|
1,663,008 |
|
|
|
1,649,990 |
|
Treasury stock |
|
|
(109,903 |
) |
|
|
(109,903 |
) |
|
|
(100,363 |
) |
|
|
(100,363 |
) |
|
|
(100,363 |
) |
Retained earnings |
|
|
2,447,535 |
|
|
|
2,373,447 |
|
|
|
2,288,969 |
|
|
|
2,208,535 |
|
|
|
2,080,013 |
|
Accumulated other comprehensive income |
|
|
4,092 |
|
|
|
1,417 |
|
|
|
10,133 |
|
|
|
10,104 |
|
|
|
15,382 |
|
Total shareholders’ equity |
|
|
4,498,688 |
|
|
|
4,410,317 |
|
|
|
4,339,011 |
|
|
|
4,252,511 |
|
|
|
4,115,995 |
|
Total liabilities and shareholders’ equity |
|
$ |
50,142,143 |
|
|
$ |
47,832,271 |
|
|
$ |
46,738,450 |
|
|
$ |
45,682,202 |
|
|
$ |
45,080,768 |
|
WINTRUST FINANCIAL CORPORATION AND
SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED)
|
Three Months Ended |
Years Ended |
(In
thousands, except per share data) |
Dec 31,
2021 |
|
Sep 30,
2021 |
|
Jun 30,
2021 |
|
Mar 31,
2021 |
|
Dec 31,
2020 |
Dec 31,
2021 |
|
Dec 31,
2020 |
Interest income |
|
|
|
|
|
|
|
|
|
|
|
|
Interest and fees on loans |
$ |
289,140 |
|
|
$ |
285,587 |
|
|
$ |
284,701 |
|
|
$ |
274,100 |
|
|
$ |
280,185 |
|
$ |
1,133,528 |
|
|
$ |
1,157,249 |
|
Mortgage loans held-for-sale |
|
7,234 |
|
|
|
7,716 |
|
|
|
8,183 |
|
|
|
9,036 |
|
|
|
6,357 |
|
|
32,169 |
|
|
|
20,077 |
|
Interest-bearing deposits with banks |
|
2,254 |
|
|
|
2,000 |
|
|
|
1,153 |
|
|
|
1,199 |
|
|
|
1,294 |
|
|
6,606 |
|
|
|
8,553 |
|
Federal funds sold and securities purchased under resale
agreements |
|
173 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
173 |
|
|
|
102 |
|
Investment securities |
|
27,210 |
|
|
|
25,189 |
|
|
|
23,623 |
|
|
|
19,264 |
|
|
|
18,243 |
|
|
95,286 |
|
|
|
99,634 |
|
Trading account securities |
|
4 |
|
|
|
3 |
|
|
|
1 |
|
|
|
2 |
|
|
|
11 |
|
|
10 |
|
|
|
37 |
|
Federal Home Loan Bank and Federal Reserve Bank stock |
|
1,776 |
|
|
|
1,777 |
|
|
|
1,769 |
|
|
|
1,745 |
|
|
|
1,775 |
|
|
7,067 |
|
|
|
6,891 |
|
Brokerage customer receivables |
|
188 |
|
|
|
185 |
|
|
|
149 |
|
|
|
123 |
|
|
|
116 |
|
|
645 |
|
|
|
477 |
|
Total interest income |
|
327,979 |
|
|
|
322,457 |
|
|
|
319,579 |
|
|
|
305,469 |
|
|
|
307,981 |
|
|
1,275,484 |
|
|
|
1,293,020 |
|
Interest expense |
|
|
|
|
|
|
|
|
|
|
|
|
Interest on deposits |
|
16,572 |
|
|
|
19,305 |
|
|
|
24,298 |
|
|
|
27,944 |
|
|
|
32,602 |
|
|
88,119 |
|
|
|
189,178 |
|
Interest on Federal Home Loan Bank advances |
|
4,923 |
|
|
|
4,931 |
|
|
|
4,887 |
|
|
|
4,840 |
|
|
|
4,952 |
|
|
19,581 |
|
|
|
18,193 |
|
Interest on other borrowings |
|
2,250 |
|
|
|
2,501 |
|
|
|
2,568 |
|
|
|
2,609 |
|
|
|
2,779 |
|
|
9,928 |
|
|
|
12,773 |
|
Interest on subordinated notes |
|
5,514 |
|
|
|
5,480 |
|
|
|
5,512 |
|
|
|
5,477 |
|
|
|
5,509 |
|
|
21,983 |
|
|
|
21,961 |
|
Interest on junior subordinated debentures |
|
2,744 |
|
|
|
2,744 |
|
|
|
2,724 |
|
|
|
2,704 |
|
|
|
2,742 |
|
|
10,916 |
|
|
|
11,008 |
|
Total interest expense |
|
32,003 |
|
|
|
34,961 |
|
|
|
39,989 |
|
|
|
43,574 |
|
|
|
48,584 |
|
|
150,527 |
|
|
|
253,113 |
|
Net interest income |
|
295,976 |
|
|
|
287,496 |
|
|
|
279,590 |
|
|
|
261,895 |
|
|
|
259,397 |
|
|
1,124,957 |
|
|
|
1,039,907 |
|
Provision for credit losses |
|
9,299 |
|
|
|
(7,916 |
) |
|
|
(15,299 |
) |
|
|
(45,347 |
) |
|
|
1,180 |
|
|
(59,263 |
) |
|
|
214,220 |
|
Net interest income after provision for credit losses |
|
286,677 |
|
|
|
295,412 |
|
|
|
294,889 |
|
|
|
307,242 |
|
|
|
258,217 |
|
|
1,184,220 |
|
|
|
825,687 |
|
Non-interest income |
|
|
|
|
|
|
|
|
|
|
|
|
Wealth management |
|
32,489 |
|
|
|
31,531 |
|
|
|
30,690 |
|
|
|
29,309 |
|
|
|
26,802 |
|
|
124,019 |
|
|
|
100,336 |
|
Mortgage banking |
|
53,138 |
|
|
|
55,794 |
|
|
|
50,584 |
|
|
|
113,494 |
|
|
|
86,819 |
|
|
273,010 |
|
|
|
346,013 |
|
Service charges on deposit accounts |
|
14,734 |
|
|
|
14,149 |
|
|
|
13,249 |
|
|
|
12,036 |
|
|
|
11,841 |
|
|
54,168 |
|
|
|
45,023 |
|
(Losses) gains on investment securities, net |
|
(1,067 |
) |
|
|
(2,431 |
) |
|
|
1,285 |
|
|
|
1,154 |
|
|
|
1,214 |
|
|
(1,059 |
) |
|
|
(1,926 |
) |
Fees from covered call options |
|
1,128 |
|
|
|
1,157 |
|
|
|
1,388 |
|
|
|
— |
|
|
|
— |
|
|
3,673 |
|
|
|
2,292 |
|
Trading gains (losses), net |
|
206 |
|
|
|
58 |
|
|
|
(438 |
) |
|
|
419 |
|
|
|
(102 |
) |
|
245 |
|
|
|
(1,004 |
) |
Operating lease income, net |
|
14,204 |
|
|
|
12,807 |
|
|
|
12,240 |
|
|
|
14,440 |
|
|
|
12,118 |
|
|
53,691 |
|
|
|
47,604 |
|
Other |
|
18,935 |
|
|
|
23,409 |
|
|
|
20,375 |
|
|
|
15,654 |
|
|
|
19,669 |
|
|
78,373 |
|
|
|
65,851 |
|
Total non-interest income |
|
133,767 |
|
|
|
136,474 |
|
|
|
129,373 |
|
|
|
186,506 |
|
|
|
158,361 |
|
|
586,120 |
|
|
|
604,189 |
|
Non-interest expense |
|
|
|
|
|
|
|
|
|
|
|
|
Salaries and employee benefits |
|
167,131 |
|
|
|
170,912 |
|
|
|
172,817 |
|
|
|
180,809 |
|
|
|
171,116 |
|
|
691,669 |
|
|
|
626,076 |
|
Software and equipment |
|
23,708 |
|
|
|
22,029 |
|
|
|
20,866 |
|
|
|
20,912 |
|
|
|
20,565 |
|
|
87,515 |
|
|
|
68,496 |
|
Operating lease equipment depreciation |
|
10,147 |
|
|
|
10,013 |
|
|
|
9,949 |
|
|
|
10,771 |
|
|
|
9,938 |
|
|
40,880 |
|
|
|
37,915 |
|
Occupancy, net |
|
18,343 |
|
|
|
18,158 |
|
|
|
17,687 |
|
|
|
19,996 |
|
|
|
19,687 |
|
|
74,184 |
|
|
|
69,957 |
|
Data processing |
|
7,207 |
|
|
|
7,104 |
|
|
|
6,920 |
|
|
|
6,048 |
|
|
|
5,728 |
|
|
27,279 |
|
|
|
30,196 |
|
Advertising and marketing |
|
13,981 |
|
|
|
13,443 |
|
|
|
11,305 |
|
|
|
8,546 |
|
|
|
9,850 |
|
|
47,275 |
|
|
|
36,296 |
|
Professional fees |
|
7,551 |
|
|
|
7,052 |
|
|
|
7,304 |
|
|
|
7,587 |
|
|
|
6,530 |
|
|
29,494 |
|
|
|
27,426 |
|
Amortization of other acquisition-related intangible assets |
|
1,811 |
|
|
|
1,877 |
|
|
|
2,039 |
|
|
|
2,007 |
|
|
|
2,634 |
|
|
7,734 |
|
|
|
11,018 |
|
FDIC insurance |
|
7,317 |
|
|
|
6,750 |
|
|
|
6,405 |
|
|
|
6,558 |
|
|
|
7,016 |
|
|
27,030 |
|
|
|
25,004 |
|
OREO expense, net |
|
(641 |
) |
|
|
(1,531 |
) |
|
|
769 |
|
|
|
(251 |
) |
|
|
(114 |
) |
|
(1,654 |
) |
|
|
(921 |
) |
Other |
|
26,844 |
|
|
|
26,337 |
|
|
|
24,051 |
|
|
|
23,906 |
|
|
|
28,917 |
|
|
101,138 |
|
|
|
108,632 |
|
Total non-interest expense |
|
283,399 |
|
|
|
282,144 |
|
|
|
280,112 |
|
|
|
286,889 |
|
|
|
281,867 |
|
|
1,132,544 |
|
|
|
1,040,095 |
|
Income before taxes |
|
137,045 |
|
|
|
149,742 |
|
|
|
144,150 |
|
|
|
206,859 |
|
|
|
134,711 |
|
|
637,796 |
|
|
|
389,781 |
|
Income tax expense |
|
38,288 |
|
|
|
40,605 |
|
|
|
39,041 |
|
|
|
53,711 |
|
|
|
33,507 |
|
|
171,645 |
|
|
|
96,791 |
|
Net income |
$ |
98,757 |
|
|
$ |
109,137 |
|
|
$ |
105,109 |
|
|
$ |
153,148 |
|
|
$ |
101,204 |
|
$ |
466,151 |
|
|
$ |
292,990 |
|
Preferred stock dividends |
|
6,991 |
|
|
|
6,991 |
|
|
|
6,991 |
|
|
|
6,991 |
|
|
|
6,991 |
|
|
27,964 |
|
|
|
21,377 |
|
Net income applicable to common shares |
$ |
91,766 |
|
|
$ |
102,146 |
|
|
$ |
98,118 |
|
|
$ |
146,157 |
|
|
$ |
94,213 |
|
$ |
438,187 |
|
|
$ |
271,613 |
|
Net income per common share - Basic |
$ |
1.61 |
|
|
$ |
1.79 |
|
|
$ |
1.72 |
|
|
$ |
2.57 |
|
|
$ |
1.64 |
|
$ |
7.69 |
|
|
$ |
4.72 |
|
Net income per common share - Diluted |
$ |
1.58 |
|
|
$ |
1.77 |
|
|
$ |
1.70 |
|
|
$ |
2.54 |
|
|
$ |
1.63 |
|
$ |
7.58 |
|
|
$ |
4.68 |
|
Cash dividends declared per common share |
$ |
0.31 |
|
|
$ |
0.31 |
|
|
$ |
0.31 |
|
|
$ |
0.31 |
|
|
$ |
0.28 |
|
$ |
1.24 |
|
|
$ |
1.12 |
|
Weighted average common shares outstanding |
|
57,022 |
|
|
|
57,000 |
|
|
|
57,049 |
|
|
|
56,904 |
|
|
|
57,309 |
|
|
56,994 |
|
|
|
57,523 |
|
Dilutive potential common shares |
|
976 |
|
|
|
753 |
|
|
|
726 |
|
|
|
681 |
|
|
|
588 |
|
|
792 |
|
|
|
496 |
|
Average common shares and dilutive common shares |
|
57,998 |
|
|
|
57,753 |
|
|
|
57,775 |
|
|
|
57,585 |
|
|
|
57,897 |
|
|
57,786 |
|
|
|
58,019 |
|
TABLE 1: LOAN PORTFOLIO MIX AND GROWTH
RATES
|
|
|
|
|
|
|
|
|
|
% Growth From (2) |
(Dollars in thousands) |
Dec 31,
2021 |
|
Sep 30,
2021 |
|
Jun 30,
2021 |
|
Mar 31,
2021 |
|
Dec 31,
2020 |
Sep 30,
2021 (1) |
|
Dec 31,
2020 |
Balance: |
|
|
|
|
|
|
|
|
|
|
|
|
Mortgage loans held-for-sale, excluding early buy-out exercised
loans guaranteed by U.S. Government Agencies |
$ |
473,102 |
|
$ |
570,663 |
|
$ |
633,006 |
|
$ |
890,749 |
|
$ |
927,307 |
(68 |
)% |
|
(49 |
)% |
Mortgage loans held-for-sale, early buy-out exercised loans
guaranteed by U.S. Government Agencies |
|
344,810 |
|
|
354,649 |
|
|
351,988 |
|
|
369,444 |
|
|
344,783 |
(11 |
) |
|
— |
|
Total mortgage loans held-for-sale |
$ |
817,912 |
|
$ |
925,312 |
|
$ |
984,994 |
|
$ |
1,260,193 |
|
$ |
1,272,090 |
(46 |
)% |
|
(36 |
)% |
|
|
|
|
|
|
|
|
|
|
|
|
|
Core loans: |
|
|
|
|
|
|
|
|
|
|
|
|
Commercial |
|
|
|
|
|
|
|
|
|
|
|
|
Commercial and industrial |
$ |
5,346,084 |
|
$ |
4,953,769 |
|
$ |
4,650,607 |
|
$ |
4,630,795 |
|
$ |
4,675,594 |
31 |
% |
|
14 |
% |
Asset-based lending |
|
1,299,869 |
|
|
1,066,376 |
|
|
892,109 |
|
|
720,772 |
|
|
721,666 |
87 |
|
|
80 |
|
Municipal |
|
536,498 |
|
|
524,192 |
|
|
511,094 |
|
|
493,417 |
|
|
474,103 |
9 |
|
|
13 |
|
Leases |
|
1,454,099 |
|
|
1,365,281 |
|
|
1,357,036 |
|
|
1,290,778 |
|
|
1,288,374 |
26 |
|
|
13 |
|
Commercial real estate |
|
|
|
|
|
|
|
|
|
|
|
|
Residential construction |
|
51,464 |
|
|
49,754 |
|
|
55,735 |
|
|
72,058 |
|
|
89,389 |
14 |
|
|
(42 |
) |
Commercial construction |
|
1,034,988 |
|
|
1,038,034 |
|
|
1,090,447 |
|
|
1,040,631 |
|
|
1,041,729 |
(1 |
) |
|
(1 |
) |
Land |
|
269,752 |
|
|
255,927 |
|
|
239,067 |
|
|
240,635 |
|
|
240,684 |
21 |
|
|
12 |
|
Office (3) |
|
1,285,686 |
|
|
1,269,746 |
|
|
1,220,658 |
|
|
1,131,472 |
|
|
1,136,844 |
5 |
|
|
13 |
|
Industrial (3) |
|
1,585,808 |
|
|
1,490,358 |
|
|
1,434,377 |
|
|
1,152,522 |
|
|
1,129,433 |
25 |
|
|
40 |
|
Retail (3) |
|
1,429,567 |
|
|
1,462,101 |
|
|
1,455,638 |
|
|
1,198,025 |
|
|
1,224,403 |
(9 |
) |
|
17 |
|
Multi-family (3) |
|
2,043,754 |
|
|
2,038,526 |
|
|
1,984,582 |
|
|
1,739,521 |
|
|
1,649,801 |
1 |
|
|
24 |
|
Mixed use and other (3) |
|
1,289,267 |
|
|
1,281,268 |
|
|
1,197,865 |
|
|
1,969,915 |
|
|
1,981,849 |
2 |
|
|
(35 |
) |
Home equity |
|
335,155 |
|
|
347,662 |
|
|
369,806 |
|
|
390,253 |
|
|
425,263 |
(14 |
) |
|
(21 |
) |
Residential real estate |
|
|
|
|
|
|
|
|
|
|
|
|
Residential real estate loans for investment |
|
1,614,392 |
|
|
1,528,889 |
|
|
1,485,952 |
|
|
1,376,465 |
|
|
1,214,744 |
22 |
|
|
33 |
|
Residential mortgage loans, early buy-out eligible loans guaranteed
by U.S. Government Agencies |
|
22,707 |
|
|
18,847 |
|
|
44,333 |
|
|
45,508 |
|
|
44,854 |
81 |
|
|
(49 |
) |
Total core loans |
$ |
19,599,090 |
|
$ |
18,690,730 |
|
$ |
17,989,306 |
|
$ |
17,492,767 |
|
$ |
17,338,730 |
19 |
% |
|
13 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
Niche loans: |
|
|
|
|
|
|
|
|
|
|
|
|
Commercial |
|
|
|
|
|
|
|
|
|
|
|
|
Franchise |
$ |
1,227,234 |
|
$ |
1,176,569 |
|
$ |
1,060,468 |
|
$ |
1,128,493 |
|
$ |
1,023,027 |
17 |
% |
|
20 |
% |
Mortgage warehouse lines of credit |
|
359,818 |
|
|
468,162 |
|
|
529,867 |
|
|
587,868 |
|
|
567,389 |
(92 |
) |
|
(37 |
) |
Community Advantage - homeowners association |
|
308,286 |
|
|
291,153 |
|
|
287,689 |
|
|
272,222 |
|
|
267,374 |
23 |
|
|
15 |
|
Insurance agency lending |
|
813,897 |
|
|
260,482 |
|
|
273,999 |
|
|
290,880 |
|
|
222,519 |
843 |
|
|
266 |
|
Premium Finance receivables |
|
|
|
|
|
|
|
|
|
|
|
|
U.S. commercial insurance |
|
4,178,474 |
|
|
3,921,289 |
|
|
3,805,504 |
|
|
3,342,730 |
|
|
3,438,087 |
26 |
|
|
22 |
|
Canada commercial insurance |
|
677,013 |
|
|
695,688 |
|
|
716,367 |
|
|
615,813 |
|
|
616,402 |
(11 |
) |
|
10 |
|
Life insurance |
|
7,042,810 |
|
|
6,655,453 |
|
|
6,359,556 |
|
|
6,111,495 |
|
|
5,857,436 |
23 |
|
|
20 |
|
Consumer and other |
|
24,199 |
|
|
22,529 |
|
|
9,024 |
|
|
35,983 |
|
|
32,188 |
29 |
|
|
(25 |
) |
Total niche loans |
$ |
14,631,731 |
|
$ |
13,491,325 |
|
$ |
13,042,474 |
|
$ |
12,385,484 |
|
$ |
12,024,422 |
34 |
% |
|
22 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial PPP loans: |
|
|
|
|
|
|
|
|
|
|
|
|
Originated in 2020 |
$ |
74,412 |
|
$ |
172,849 |
|
$ |
656,502 |
|
$ |
2,049,342 |
|
$ |
2,715,921 |
NM |
|
|
(97 |
)% |
Originated in 2021 |
|
483,871 |
|
|
909,139 |
|
|
1,222,905 |
|
|
1,243,640 |
|
|
— |
NM |
|
|
100 |
|
Total commercial PPP loans |
$ |
558,283 |
|
$ |
1,081,988 |
|
$ |
1,879,407 |
|
$ |
3,292,982 |
|
$ |
2,715,921 |
NM |
|
|
(79 |
)% |
|
|
|
|
|
|
|
|
|
|
|
|
|
Total loans, net of unearned income |
$ |
34,789,104 |
|
$ |
33,264,043 |
|
$ |
32,911,187 |
|
$ |
33,171,233 |
|
$ |
32,079,073 |
18 |
% |
|
8 |
% |
(1)
Annualized.
(2) NM - Not
meaningful.
(3) As a result of a review of
the composition of borrowers within the mixed use and other loan
portfolio, the Company identified certain loans that would be more
precisely classified within a separate class of non-construction
commercial real estate. This change in classification was based on
related collateral and source of repayment of the underlying loan.
Balances within such categories were also updated as of September
30, 2021 and June 30, 2021 in the table above for comparison
purposes.
TABLE 2: DEPOSIT PORTFOLIO MIX AND GROWTH
RATES
|
|
|
|
|
|
|
|
|
|
% Growth From |
(Dollars in thousands) |
Dec 31,
2021 |
|
Sep 30,
2021 |
|
Jun 30,
2021 |
|
Mar 31,
2021 |
|
Dec 31,
2020 |
Sep 30,
2021 (1) |
|
Dec 31,
2020 |
Balance: |
|
|
|
|
|
|
|
|
|
|
|
|
Non-interest-bearing |
$ |
14,179,980 |
|
|
$ |
13,255,417 |
|
|
$ |
12,796,110 |
|
|
$ |
12,297,337 |
|
|
$ |
11,748,455 |
|
28 |
% |
|
21 |
% |
NOW and interest-bearing demand deposits |
|
4,158,871 |
|
|
|
3,769,825 |
|
|
|
3,625,538 |
|
|
|
3,562,312 |
|
|
|
3,349,021 |
|
41 |
|
|
24 |
|
Wealth management deposits (2) |
|
4,491,795 |
|
|
|
4,177,820 |
|
|
|
4,399,303 |
|
|
|
4,274,527 |
|
|
|
4,138,712 |
|
30 |
|
|
9 |
|
Money market |
|
11,449,469 |
|
|
|
10,757,654 |
|
|
|
9,843,390 |
|
|
|
9,236,434 |
|
|
|
9,348,806 |
|
26 |
|
|
22 |
|
Savings |
|
3,846,681 |
|
|
|
3,861,296 |
|
|
|
3,776,400 |
|
|
|
3,690,892 |
|
|
|
3,531,029 |
|
(2 |
) |
|
9 |
|
Time certificates of deposit |
|
3,968,789 |
|
|
|
4,130,546 |
|
|
|
4,363,875 |
|
|
|
4,811,150 |
|
|
|
4,976,628 |
|
(16 |
) |
|
(20 |
) |
Total deposits |
$ |
42,095,585 |
|
|
$ |
39,952,558 |
|
|
$ |
38,804,616 |
|
|
$ |
37,872,652 |
|
|
$ |
37,092,651 |
|
21 |
% |
|
13 |
% |
Mix: |
|
|
|
|
|
|
|
|
|
|
|
|
Non-interest-bearing |
|
34 |
% |
|
|
33 |
% |
|
|
33 |
% |
|
|
32 |
% |
|
|
32 |
% |
|
|
|
NOW and interest-bearing demand deposits |
|
10 |
|
|
|
9 |
|
|
|
9 |
|
|
|
9 |
|
|
|
9 |
|
|
|
|
Wealth management deposits (2) |
|
11 |
|
|
|
11 |
|
|
|
11 |
|
|
|
11 |
|
|
|
11 |
|
|
|
|
Money market |
|
27 |
|
|
|
27 |
|
|
|
25 |
|
|
|
25 |
|
|
|
25 |
|
|
|
|
Savings |
|
9 |
|
|
|
10 |
|
|
|
10 |
|
|
|
10 |
|
|
|
10 |
|
|
|
|
Time certificates of deposit |
|
9 |
|
|
|
10 |
|
|
|
12 |
|
|
|
13 |
|
|
|
13 |
|
|
|
|
Total deposits |
|
100 |
% |
|
|
100 |
% |
|
|
100 |
% |
|
|
100 |
% |
|
|
100 |
% |
|
|
|
(1) Annualized.
(2)
Represents deposit balances of the Company’s subsidiary banks from
brokerage customers of Wintrust Investments, Chicago Deferred
Exchange Company, LLC (“CDEC”), trust and asset management
customers of the Company and brokerage customers from unaffiliated
companies which have been placed into deposit accounts.
TABLE 3: TIME CERTIFICATES OF DEPOSIT
MATURITY/RE-PRICING ANALYSIS
As of December 31, 2021
(Dollars in thousands) |
|
Total Time
Certificates of
Deposit |
|
Weighted-Average
Rate of Maturing
Time Certificates
of Deposit
(1) |
1-3 months |
|
$ |
838,321 |
|
0.52 |
% |
4-6 months |
|
|
686,126 |
|
0.38 |
|
7-9 months |
|
|
677,003 |
|
0.39 |
|
10-12 months |
|
|
613,644 |
|
0.41 |
|
13-18 months |
|
|
601,464 |
|
0.47 |
|
19-24 months |
|
|
293,945 |
|
0.48 |
|
24+ months |
|
|
258,286 |
|
0.52 |
|
Total |
|
$ |
3,968,789 |
|
0.45 |
% |
(1) Weighted-average rate excludes the impact
of purchase accounting fair value adjustments.
TABLE 4: QUARTERLY AVERAGE BALANCES
|
|
Average Balance for three months ended, |
|
|
Dec
31, |
|
Sep 30, |
|
Jun 30, |
|
Mar 31, |
|
Dec 31, |
(In thousands) |
|
|
2021 |
|
|
|
2021 |
|
|
|
2021 |
|
|
|
2021 |
|
|
|
2020 |
|
Interest-bearing deposits with banks, securities purchased under
resale agreements and cash equivalents (1) |
|
$ |
6,148,165 |
|
|
$ |
5,112,720 |
|
|
$ |
3,844,355 |
|
|
$ |
4,230,886 |
|
|
$ |
4,381,040 |
|
Investment securities (2) |
|
|
5,317,351 |
|
|
|
5,065,593 |
|
|
|
4,771,403 |
|
|
|
3,944,676 |
|
|
|
3,534,594 |
|
FHLB and FRB stock |
|
|
135,414 |
|
|
|
136,001 |
|
|
|
136,324 |
|
|
|
135,758 |
|
|
|
135,569 |
|
Liquidity management assets (3) |
|
|
11,600,930 |
|
|
|
10,314,314 |
|
|
|
8,752,082 |
|
|
|
8,311,320 |
|
|
|
8,051,203 |
|
Other earning assets (3)(4) |
|
|
28,298 |
|
|
|
28,238 |
|
|
|
23,354 |
|
|
|
20,370 |
|
|
|
18,716 |
|
Mortgage loans held-for-sale |
|
|
827,672 |
|
|
|
871,824 |
|
|
|
991,011 |
|
|
|
1,151,848 |
|
|
|
893,395 |
|
Loans, net of unearned income (3)(5) |
|
|
33,677,777 |
|
|
|
32,985,445 |
|
|
|
33,085,174 |
|
|
|
32,442,927 |
|
|
|
31,783,279 |
|
Total earning assets (3) |
|
|
46,134,677 |
|
|
|
44,199,821 |
|
|
|
42,851,621 |
|
|
|
41,926,465 |
|
|
|
40,746,593 |
|
Allowance for loan and investment security losses |
|
|
(254,874 |
) |
|
|
(269,963 |
) |
|
|
(285,686 |
) |
|
|
(327,080 |
) |
|
|
(336,139 |
) |
Cash and due from banks |
|
|
468,331 |
|
|
|
425,000 |
|
|
|
470,566 |
|
|
|
366,413 |
|
|
|
344,536 |
|
Other assets |
|
|
2,770,643 |
|
|
|
2,837,652 |
|
|
|
2,910,250 |
|
|
|
3,022,935 |
|
|
|
3,055,015 |
|
Total assets |
|
$ |
49,118,777 |
|
|
$ |
47,192,510 |
|
|
$ |
45,946,751 |
|
|
$ |
44,988,733 |
|
|
$ |
43,810,005 |
|
|
|
|
|
|
|
|
|
|
|
|
NOW and interest-bearing demand deposits |
|
$ |
3,962,739 |
|
|
$ |
3,757,677 |
|
|
$ |
3,626,424 |
|
|
$ |
3,493,451 |
|
|
$ |
3,320,527 |
|
Wealth management deposits |
|
|
4,514,319 |
|
|
|
4,672,402 |
|
|
|
4,369,998 |
|
|
|
4,156,398 |
|
|
|
4,066,948 |
|
Money market accounts |
|
|
11,274,230 |
|
|
|
10,027,424 |
|
|
|
9,547,167 |
|
|
|
9,335,920 |
|
|
|
9,435,344 |
|
Savings accounts |
|
|
3,766,037 |
|
|
|
3,851,523 |
|
|
|
3,728,271 |
|
|
|
3,587,566 |
|
|
|
3,413,388 |
|
Time deposits |
|
|
4,058,282 |
|
|
|
4,236,317 |
|
|
|
4,632,796 |
|
|
|
4,875,392 |
|
|
|
5,043,558 |
|
Interest-bearing deposits |
|
|
27,575,607 |
|
|
|
26,545,343 |
|
|
|
25,904,656 |
|
|
|
25,448,727 |
|
|
|
25,279,765 |
|
Federal Home Loan Bank advances |
|
|
1,241,073 |
|
|
|
1,241,073 |
|
|
|
1,235,142 |
|
|
|
1,228,433 |
|
|
|
1,228,425 |
|
Other borrowings |
|
|
501,933 |
|
|
|
512,785 |
|
|
|
525,924 |
|
|
|
518,188 |
|
|
|
510,725 |
|
Subordinated notes |
|
|
436,861 |
|
|
|
436,746 |
|
|
|
436,644 |
|
|
|
436,532 |
|
|
|
436,433 |
|
Junior subordinated debentures |
|
|
253,566 |
|
|
|
253,566 |
|
|
|
253,566 |
|
|
|
253,566 |
|
|
|
253,566 |
|
Total interest-bearing liabilities |
|
|
30,009,040 |
|
|
|
28,989,513 |
|
|
|
28,355,932 |
|
|
|
27,885,446 |
|
|
|
27,708,914 |
|
Non-interest-bearing deposits |
|
|
13,640,270 |
|
|
|
12,834,084 |
|
|
|
12,246,274 |
|
|
|
11,811,194 |
|
|
|
10,874,912 |
|
Other liabilities |
|
|
1,035,514 |
|
|
|
1,024,998 |
|
|
|
1,087,767 |
|
|
|
1,127,203 |
|
|
|
1,175,893 |
|
Equity |
|
|
4,433,953 |
|
|
|
4,343,915 |
|
|
|
4,256,778 |
|
|
|
4,164,890 |
|
|
|
4,050,286 |
|
Total liabilities and shareholders’ equity |
|
$ |
49,118,777 |
|
|
$ |
47,192,510 |
|
|
$ |
45,946,751 |
|
|
$ |
44,988,733 |
|
|
$ |
43,810,005 |
|
|
|
|
|
|
|
|
|
|
|
|
Net free funds/contribution (6) |
|
$ |
16,125,637 |
|
|
$ |
15,210,308 |
|
|
$ |
14,495,689 |
|
|
$ |
14,041,019 |
|
|
$ |
13,037,679 |
|
(1) Includes interest-bearing deposits from
banks and securities purchased under resale agreements with
original maturities of greater than three months. Cash equivalents
include federal funds sold and securities purchased under resale
agreements with original maturities of three months or
less.
(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, |
|
|
Dec 31, |
|
Sep 30, |
|
Jun 30, |
|
Mar 31, |
|
Dec 31, |
(In thousands) |
|
|
2021 |
|
|
|
2021 |
|
|
|
2021 |
|
|
|
2021 |
|
|
|
2020 |
|
Interest income: |
|
|
|
|
|
|
|
|
|
|
Interest-bearing deposits with banks, securities purchased under
resale agreements and cash equivalents |
|
$ |
2,427 |
|
|
$ |
2,000 |
|
|
$ |
1,153 |
|
|
$ |
1,199 |
|
|
$ |
1,294 |
|
Investment securities |
|
|
27,696 |
|
|
|
25,681 |
|
|
|
24,117 |
|
|
|
19,764 |
|
|
|
18,773 |
|
FHLB and FRB stock |
|
|
1,776 |
|
|
|
1,777 |
|
|
|
1,769 |
|
|
|
1,745 |
|
|
|
1,775 |
|
Liquidity management assets (1) |
|
|
31,899 |
|
|
|
29,458 |
|
|
|
27,039 |
|
|
|
22,708 |
|
|
|
21,842 |
|
Other earning assets (1) |
|
|
194 |
|
|
|
188 |
|
|
|
150 |
|
|
|
125 |
|
|
|
130 |
|
Mortgage loans held-for-sale |
|
|
7,234 |
|
|
|
7,716 |
|
|
|
8,183 |
|
|
|
9,036 |
|
|
|
6,357 |
|
Loans, net of unearned income (1) |
|
|
289,557 |
|
|
|
285,998 |
|
|
|
285,116 |
|
|
|
274,484 |
|
|
|
280,509 |
|
Total interest income |
|
$ |
328,884 |
|
|
$ |
323,360 |
|
|
$ |
320,488 |
|
|
$ |
306,353 |
|
|
$ |
308,838 |
|
|
|
|
|
|
|
|
|
|
|
|
Interest expense: |
|
|
|
|
|
|
|
|
|
|
NOW and interest-bearing demand deposits |
|
$ |
774 |
|
|
$ |
767 |
|
|
$ |
736 |
|
|
$ |
901 |
|
|
$ |
1,074 |
|
Wealth management deposits |
|
|
7,595 |
|
|
|
7,888 |
|
|
|
7,686 |
|
|
|
7,351 |
|
|
|
7,436 |
|
Money market accounts |
|
|
2,604 |
|
|
|
2,342 |
|
|
|
2,795 |
|
|
|
2,865 |
|
|
|
3,740 |
|
Savings accounts |
|
|
345 |
|
|
|
406 |
|
|
|
402 |
|
|
|
430 |
|
|
|
773 |
|
Time deposits |
|
|
5,254 |
|
|
|
7,902 |
|
|
|
12,679 |
|
|
|
16,397 |
|
|
|
19,579 |
|
Interest-bearing deposits |
|
|
16,572 |
|
|
|
19,305 |
|
|
|
24,298 |
|
|
|
27,944 |
|
|
|
32,602 |
|
Federal Home Loan Bank advances |
|
|
4,923 |
|
|
|
4,931 |
|
|
|
4,887 |
|
|
|
4,840 |
|
|
|
4,952 |
|
Other borrowings |
|
|
2,250 |
|
|
|
2,501 |
|
|
|
2,568 |
|
|
|
2,609 |
|
|
|
2,779 |
|
Subordinated notes |
|
|
5,514 |
|
|
|
5,480 |
|
|
|
5,512 |
|
|
|
5,477 |
|
|
|
5,509 |
|
Junior subordinated debentures |
|
|
2,744 |
|
|
|
2,744 |
|
|
|
2,724 |
|
|
|
2,704 |
|
|
|
2,742 |
|
Total interest expense |
|
$ |
32,003 |
|
|
$ |
34,961 |
|
|
$ |
39,989 |
|
|
$ |
43,574 |
|
|
$ |
48,584 |
|
|
|
|
|
|
|
|
|
|
|
|
Less: Fully taxable-equivalent adjustment |
|
|
(905 |
) |
|
|
(903 |
) |
|
|
(909 |
) |
|
|
(884 |
) |
|
|
(857 |
) |
Net interest income (GAAP) (2) |
|
|
295,976 |
|
|
|
287,496 |
|
|
|
279,590 |
|
|
|
261,895 |
|
|
|
259,397 |
|
Fully taxable-equivalent adjustment |
|
|
905 |
|
|
|
903 |
|
|
|
909 |
|
|
|
884 |
|
|
|
857 |
|
Net interest income, fully taxable-equivalent (non-GAAP)
(2) |
|
$ |
296,881 |
|
|
$ |
288,399 |
|
|
$ |
280,499 |
|
|
$ |
262,779 |
|
|
$ |
260,254 |
|
(1) Interest income on tax-advantaged loans,
trading securities and investment securities reflects a
taxable-equivalent adjustment based on the marginal federal
corporate tax rate in effect as of the applicable
period.
(2) See “Supplemental Non-GAAP Financial
Measures/Ratios” at Table 18 for additional information on this
performance measure/ratio.
TABLE 6: QUARTERLY NET INTEREST
MARGIN
|
|
Net Interest Margin for three months ended, |
|
|
Dec 31,
2021 |
|
Sep 30,
2021 |
|
Jun 30,
2021 |
|
Mar 31,
2021 |
|
Dec 31,
2020 |
Yield earned on: |
|
|
|
|
|
|
|
|
|
|
Interest-bearing deposits with banks, securities purchased under
resale agreements and cash equivalents |
|
0.16 |
% |
|
0.16 |
% |
|
0.12 |
% |
|
0.11 |
% |
|
0.12 |
% |
Investment securities |
|
2.07 |
|
|
2.01 |
|
|
2.03 |
|
|
2.03 |
|
|
2.11 |
|
FHLB and FRB stock |
|
5.20 |
|
|
5.18 |
|
|
5.20 |
|
|
5.21 |
|
|
5.21 |
|
Liquidity management assets |
|
1.09 |
|
|
1.13 |
|
|
1.24 |
|
|
1.11 |
|
|
1.08 |
|
Other earning assets |
|
2.71 |
|
|
2.64 |
|
|
2.59 |
|
|
2.50 |
|
|
2.79 |
|
Mortgage loans held-for-sale |
|
3.47 |
|
|
3.51 |
|
|
3.31 |
|
|
3.18 |
|
|
2.83 |
|
Loans, net of unearned income |
|
3.41 |
|
|
3.44 |
|
|
3.46 |
|
|
3.43 |
|
|
3.51 |
|
Total earning assets |
|
2.83 |
% |
|
2.90 |
% |
|
3.00 |
% |
|
2.96 |
% |
|
3.02 |
% |
|
|
|
|
|
|
|
|
|
|
|
Rate paid on: |
|
|
|
|
|
|
|
|
|
|
NOW and interest-bearing demand deposits |
|
0.08 |
% |
|
0.08 |
% |
|
0.08 |
% |
|
0.10 |
% |
|
0.13 |
% |
Wealth management deposits |
|
0.67 |
|
|
0.67 |
|
|
0.71 |
|
|
0.72 |
|
|
0.73 |
|
Money market accounts |
|
0.09 |
|
|
0.09 |
|
|
0.12 |
|
|
0.12 |
|
|
0.16 |
|
Savings accounts |
|
0.04 |
|
|
0.04 |
|
|
0.04 |
|
|
0.05 |
|
|
0.09 |
|
Time deposits |
|
0.51 |
|
|
0.74 |
|
|
1.10 |
|
|
1.36 |
|
|
1.54 |
|
Interest-bearing deposits |
|
0.24 |
|
|
0.29 |
|
|
0.38 |
|
|
0.45 |
|
|
0.51 |
|
Federal Home Loan Bank advances |
|
1.57 |
|
|
1.58 |
|
|
1.59 |
|
|
1.60 |
|
|
1.60 |
|
Other borrowings |
|
1.78 |
|
|
1.94 |
|
|
1.96 |
|
|
2.04 |
|
|
2.16 |
|
Subordinated notes |
|
5.05 |
|
|
5.02 |
|
|
5.05 |
|
|
5.02 |
|
|
5.05 |
|
Junior subordinated debentures |
|
4.23 |
|
|
4.23 |
|
|
4.25 |
|
|
4.27 |
|
|
4.23 |
|
Total interest-bearing liabilities |
|
0.42 |
% |
|
0.48 |
% |
|
0.56 |
% |
|
0.63 |
% |
|
0.70 |
% |
|
|
|
|
|
|
|
|
|
|
|
Interest rate spread (1)(2) |
|
2.41 |
% |
|
2.42 |
% |
|
2.44 |
% |
|
2.33 |
% |
|
2.32 |
% |
Less: Fully taxable-equivalent adjustment |
|
(0.01 |
) |
|
(0.01 |
) |
|
(0.01 |
) |
|
(0.01 |
) |
|
(0.01 |
) |
Net free funds/contribution (3) |
|
0.14 |
|
|
0.17 |
|
|
0.19 |
|
|
0.21 |
|
|
0.22 |
|
Net interest margin (GAAP) (2) |
|
2.54 |
% |
|
2.58 |
% |
|
2.62 |
% |
|
2.53 |
% |
|
2.53 |
% |
Fully taxable-equivalent adjustment |
|
0.01 |
|
|
0.01 |
|
|
0.01 |
|
|
0.01 |
|
|
0.01 |
|
Net interest margin, fully taxable-equivalent (non-GAAP)
(2) |
|
2.55 |
% |
|
2.59 |
% |
|
2.63 |
% |
|
2.54 |
% |
|
2.54 |
% |
(1) Interest rate spread is the difference
between the yield earned on earning assets and the rate paid on
interest-bearing liabilities.
(2) See
“Supplemental Non-GAAP Financial Measures/Ratios” at Table 18 for
additional information on this performance
measure/ratio.
(3) Net free funds are the
difference between total average earning assets and total average
interest-bearing liabilities. The estimated contribution to net
interest margin from net free funds is calculated using the rate
paid for total interest-bearing liabilities.
TABLE 7: YEAR-TO-DATE AVERAGE BALANCES,
AND NET INTEREST INCOME AND MARGIN
|
Average Balance
for years ended, |
Interest
for years ended, |
Yield/Rate
for years ended, |
(Dollars in thousands) |
Dec 31,
2021 |
|
Dec 31,
2020 |
Dec 31,
2021 |
|
Dec 31,
2020 |
Dec 31,
2021 |
|
Dec 31,
2020 |
Interest-bearing deposits with banks, securities purchased under
resale agreements and cash equivalents (1) |
$ |
4,840,048 |
|
|
$ |
3,117,075 |
|
$ |
6,779 |
|
|
$ |
8,655 |
|
0.14 |
% |
|
0.28 |
% |
Investment securities (2) |
|
4,779,313 |
|
|
|
4,101,136 |
|
|
97,258 |
|
|
|
101,799 |
|
2.03 |
|
|
2.48 |
|
FHLB and FRB stock |
|
135,873 |
|
|
|
130,360 |
|
|
7,067 |
|
|
|
6,891 |
|
5.20 |
|
|
5.29 |
|
Liquidity management assets (3)(4) |
$ |
9,755,234 |
|
|
$ |
7,348,571 |
|
$ |
111,104 |
|
|
$ |
117,345 |
|
1.14 |
% |
|
1.60 |
% |
Other earning assets (3)(4)(5) |
|
25,096 |
|
|
|
17,863 |
|
|
657 |
|
|
|
523 |
|
2.62 |
|
|
2.94 |
|
Mortgage loans held-for-sale |
|
959,457 |
|
|
|
707,147 |
|
|
32,169 |
|
|
|
20,077 |
|
3.35 |
|
|
2.84 |
|
Loans, net of unearned income (3)(4)(6) |
|
33,051,043 |
|
|
|
30,181,204 |
|
|
1,135,155 |
|
|
|
1,159,490 |
|
3.43 |
|
|
3.84 |
|
Total earning assets (4) |
$ |
43,790,830 |
|
|
$ |
38,254,785 |
|
$ |
1,279,085 |
|
|
$ |
1,297,435 |
|
2.92 |
% |
|
3.39 |
% |
Allowance for loan and investment security losses |
|
(284,163 |
) |
|
|
(264,516 |
) |
|
|
|
|
|
|
Cash and due from banks |
|
432,836 |
|
|
|
341,116 |
|
|
|
|
|
|
|
Other assets |
|
2,884,548 |
|
|
|
3,039,954 |
|
|
|
|
|
|
|
Total assets |
$ |
46,824,051 |
|
|
$ |
41,371,339 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NOW and interest-bearing demand deposits |
$ |
3,711,489 |
|
|
$ |
3,298,554 |
|
$ |
3,178 |
|
|
$ |
7,642 |
|
0.09 |
% |
|
0.23 |
% |
Wealth management deposits |
|
4,429,929 |
|
|
|
3,882,975 |
|
|
30,520 |
|
|
|
29,277 |
|
0.69 |
|
|
0.75 |
|
Money market accounts |
|
10,051,444 |
|
|
|
8,874,488 |
|
|
10,606 |
|
|
|
46,488 |
|
0.11 |
|
|
0.52 |
|
Savings accounts |
|
3,734,162 |
|
|
|
3,354,662 |
|
|
1,583 |
|
|
|
12,507 |
|
0.04 |
|
|
0.37 |
|
Time deposits |
|
4,447,871 |
|
|
|
5,142,938 |
|
|
42,232 |
|
|
|
93,264 |
|
0.95 |
|
|
1.81 |
|
Interest-bearing deposits |
$ |
26,374,895 |
|
|
$ |
24,553,617 |
|
$ |
88,119 |
|
|
$ |
189,178 |
|
0.33 |
% |
|
0.77 |
% |
Federal Home Loan Bank advances |
|
1,236,478 |
|
|
|
1,156,106 |
|
|
19,581 |
|
|
|
18,193 |
|
1.58 |
|
|
1.57 |
|
Other borrowings |
|
514,657 |
|
|
|
496,693 |
|
|
9,928 |
|
|
|
12,773 |
|
1.93 |
|
|
2.57 |
|
Subordinated notes |
|
436,697 |
|
|
|
436,275 |
|
|
21,983 |
|
|
|
21,961 |
|
5.03 |
|
|
5.03 |
|
Junior subordinated debentures |
|
253,566 |
|
|
|
253,566 |
|
|
10,916 |
|
|
|
11,008 |
|
4.25 |
|
|
4.27 |
|
Total interest-bearing liabilities |
$ |
28,816,293 |
|
|
$ |
26,896,257 |
|
$ |
150,527 |
|
|
$ |
253,113 |
|
0.52 |
% |
|
0.94 |
% |
Non-interest-bearing deposits |
|
12,638,518 |
|
|
|
9,432,090 |
|
|
|
|
|
|
|
Other liabilities |
|
1,068,498 |
|
|
|
1,116,304 |
|
|
|
|
|
|
|
Equity |
|
4,300,742 |
|
|
|
3,926,688 |
|
|
|
|
|
|
|
Total liabilities and shareholders’ equity |
$ |
46,824,051 |
|
|
$ |
41,371,339 |
|
|
|
|
|
|
|
Interest rate spread (4)(7) |
|
|
|
|
|
|
2.40 |
% |
|
2.45 |
% |
Less: Fully taxable-equivalent adjustment |
|
|
|
|
(3,601 |
) |
|
|
(4,415 |
) |
(0.01 |
) |
|
(0.01 |
) |
Net free funds/contribution (8) |
$ |
14,974,537 |
|
|
$ |
11,358,528 |
|
|
|
|
0.18 |
|
|
0.28 |
|
Net interest income/margin (GAAP) (4) |
|
|
|
$ |
1,124,957 |
|
|
$ |
1,039,907 |
|
2.57 |
% |
|
2.72 |
% |
Fully taxable-equivalent adjustment |
|
|
|
|
3,601 |
|
|
|
4,415 |
|
0.01 |
|
|
0.01 |
|
Net interest income/margin, fully taxable-equivalent (non-GAAP)
(4) |
|
|
|
$ |
1,128,558 |
|
|
$ |
1,044,322 |
|
2.58 |
% |
|
2.73 |
% |
(1) Includes interest-bearing deposits from
banks and securities purchased under resale agreements with
original maturities of greater than three months. Cash equivalents
include federal funds sold and securities purchased under resale
agreements with original maturities of three months or
less.
(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 the 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 measure/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 |
Dec 31, 2021 |
|
25.3 |
% |
|
12.4 |
% |
|
(8.5 |
)% |
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 |
) |
Ramp Scenario |
+200
Basis
Points |
|
+100
Basis
Points |
|
-100
Basis
Points |
Dec 31, 2021 |
13.9 |
% |
|
6.9 |
% |
|
(5.6 |
)% |
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 |
) |
TABLE 9: MATURITIES AND SENSITIVITIES TO
CHANGES IN INTEREST RATES
|
Loans repricing or maturity period |
|
|
As of December 31, 2021 |
One year or
less |
|
From one to five
years |
|
Over five years |
|
|
(In
thousands) |
|
|
|
Total |
Commercial |
|
|
|
|
|
|
|
Fixed rate |
$ |
536,782 |
|
$ |
2,092,006 |
|
$ |
1,330,518 |
|
$ |
3,959,306 |
Fixed Rate - PPP |
|
40,533 |
|
|
517,750 |
|
|
— |
|
|
558,283 |
Variable rate |
|
7,383,214 |
|
|
3,207 |
|
|
58 |
|
|
7,386,479 |
Total commercial |
$ |
7,960,529 |
|
$ |
2,612,963 |
|
$ |
1,330,576 |
|
$ |
11,904,068 |
Commercial real estate |
|
|
|
|
|
|
|
Fixed rate |
|
518,488 |
|
|
2,376,629 |
|
|
525,173 |
|
|
3,420,290 |
Variable rate |
|
5,550,141 |
|
|
19,855 |
|
|
— |
|
|
5,569,996 |
Total commercial real estate |
$ |
6,068,629 |
|
$ |
2,396,484 |
|
$ |
525,173 |
|
$ |
8,990,286 |
Home equity |
|
|
|
|
|
|
|
Fixed rate |
|
14,896 |
|
|
3,059 |
|
|
42 |
|
|
17,997 |
Variable rate |
|
317,158 |
|
|
— |
|
|
— |
|
|
317,158 |
Total home equity |
$ |
332,054 |
|
$ |
3,059 |
|
$ |
42 |
|
$ |
335,155 |
Residential real estate |
|
|
|
|
|
|
|
Fixed rate |
|
17,812 |
|
|
5,834 |
|
|
897,316 |
|
|
920,962 |
Variable rate |
|
58,968 |
|
|
237,706 |
|
|
419,463 |
|
|
716,137 |
Total residential real estate |
$ |
76,780 |
|
$ |
243,540 |
|
$ |
1,316,779 |
|
$ |
1,637,099 |
Premium finance receivables - commercial |
|
|
|
|
|
|
|
Fixed rate |
|
4,677,500 |
|
|
177,987 |
|
|
— |
|
|
4,855,487 |
Variable rate |
|
— |
|
|
— |
|
|
— |
|
|
— |
Total premium finance receivables - commercial |
$ |
4,677,500 |
|
$ |
177,987 |
|
$ |
— |
|
$ |
4,855,487 |
Premium finance receivables - life insurance |
|
|
|
|
|
|
|
Fixed rate |
|
8,579 |
|
|
474,465 |
|
|
21,727 |
|
|
504,771 |
Variable rate |
|
6,538,039 |
|
|
— |
|
|
— |
|
|
6,538,039 |
Total premium finance receivables - life insurance |
$ |
6,546,618 |
|
$ |
474,465 |
|
$ |
21,727 |
|
$ |
7,042,810 |
Consumer and other |
|
|
|
|
|
|
|
Fixed rate |
|
4,094 |
|
|
5,004 |
|
|
656 |
|
|
9,754 |
Variable rate |
|
14,445 |
|
|
— |
|
|
— |
|
|
14,445 |
Total consumer and other |
$ |
18,539 |
|
$ |
5,004 |
|
$ |
656 |
|
$ |
24,199 |
|
|
|
|
|
|
|
|
Total per category |
|
|
|
|
|
|
|
Fixed rate |
|
5,778,151 |
|
|
5,134,984 |
|
|
2,775,432 |
|
|
13,688,567 |
Fixed rate - PPP |
|
40,533 |
|
|
517,750 |
|
|
— |
|
|
558,283 |
Variable rate |
|
19,861,965 |
|
|
260,768 |
|
|
419,521 |
|
|
20,542,254 |
Total loans, net of unearned income |
$ |
25,680,649 |
|
$ |
5,913,502 |
|
$ |
3,194,953 |
|
$ |
34,789,104 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Variable Rate Loan Pricing by Index: |
|
|
|
|
|
|
|
Prime |
|
|
|
|
|
|
$ |
3,273,915 |
One- month LIBOR |
|
|
|
|
|
|
|
8,848,709 |
Three- month LIBOR |
|
|
|
|
|
|
|
285,441 |
Twelve- month LIBOR |
|
|
|
|
|
|
|
6,677,139 |
U.S. Treasury tenors |
|
|
|
|
|
|
|
107,037 |
SOFR tenors |
|
|
|
|
|
|
|
598,904 |
Thirty-Day Ameribor |
|
|
|
|
|
|
|
89,832 |
Other |
|
|
|
|
|
|
|
661,277 |
Total variable rate |
|
|
|
|
|
|
$ |
20,542,254 |
LIBOR - London Interbank Offered Rate.
SOFR - Secured Overnight Financing Rate.
Ameribor - American Interbank Offered Rate.
Graph available at the following
link: http://ml.globenewswire.com/Resource/Download/a9f90280-1a99-476a-b4f8-435648696df0
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 $8.8 billion of variable rate loans tied to one-month LIBOR and
$6.7 billion of variable rate loans tied to twelve-month LIBOR. The
above chart shows:
|
|
Basis Point (bp) Change in |
|
|
Prime |
|
1-month
LIBOR |
|
12-month
LIBOR |
|
Fourth Quarter 2021 |
|
0 |
bps |
2 |
bps |
34 |
bps |
Third
Quarter 2021 |
|
0 |
|
-2 |
|
-1 |
|
Second
Quarter 2021 |
|
0 |
|
-1 |
|
-3 |
|
First
Quarter 2021 |
|
0 |
|
-3 |
|
-6 |
|
Fourth Quarter 2020 |
|
0 |
|
-1 |
|
-2 |
|
TABLE 10: ALLOWANCE FOR CREDIT LOSSES
|
|
Three Months Ended |
Years Ended |
|
|
Dec 31, |
|
Sep 30, |
|
Jun 30, |
|
Mar 31, |
|
Dec 31, |
Dec 31, |
|
Dec 31, |
(Dollars in thousands) |
|
|
2021 |
|
|
|
2021 |
|
|
|
2021 |
|
|
|
2021 |
|
|
|
2020 |
|
|
2021 |
|
|
|
2020 |
|
Allowance for credit losses at beginning of
period |
|
$ |
296,138 |
|
|
$ |
304,121 |
|
|
$ |
321,308 |
|
|
$ |
379,969 |
|
|
$ |
388,971 |
|
$ |
379,969 |
|
|
$ |
158,461 |
|
Cumulative effect adjustment from the adoption of ASU
2016-13 |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
— |
|
|
|
47,418 |
|
Provision for credit losses |
|
|
9,299 |
|
|
|
(7,916 |
) |
|
|
(15,299 |
) |
|
|
(45,347 |
) |
|
|
1,180 |
|
|
(59,263 |
) |
|
|
214,220 |
|
Initial allowance for credit losses recognized on PCD
assets acquired during the period (1) |
|
|
470 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
470 |
|
|
|
— |
|
Other adjustments |
|
|
5 |
|
|
|
(65 |
) |
|
|
34 |
|
|
|
31 |
|
|
|
155 |
|
|
5 |
|
|
|
179 |
|
Charge-offs: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial |
|
|
4,431 |
|
|
|
1,352 |
|
|
|
3,237 |
|
|
|
11,781 |
|
|
|
5,184 |
|
|
20,801 |
|
|
|
18,293 |
|
Commercial real estate |
|
|
495 |
|
|
|
406 |
|
|
|
1,412 |
|
|
|
980 |
|
|
|
6,637 |
|
|
3,293 |
|
|
|
15,960 |
|
Home equity |
|
|
135 |
|
|
|
59 |
|
|
|
142 |
|
|
|
— |
|
|
|
683 |
|
|
336 |
|
|
|
2,061 |
|
Residential real estate |
|
|
1,067 |
|
|
|
10 |
|
|
|
3 |
|
|
|
2 |
|
|
|
114 |
|
|
1,082 |
|
|
|
891 |
|
Premium finance receivables |
|
|
2,314 |
|
|
|
1,390 |
|
|
|
2,077 |
|
|
|
3,239 |
|
|
|
4,214 |
|
|
9,020 |
|
|
|
15,472 |
|
Consumer and other |
|
|
157 |
|
|
|
112 |
|
|
|
104 |
|
|
|
114 |
|
|
|
198 |
|
|
487 |
|
|
|
528 |
|
Total charge-offs |
|
|
8,599 |
|
|
|
3,329 |
|
|
|
6,975 |
|
|
|
16,116 |
|
|
|
17,030 |
|
|
35,019 |
|
|
|
53,205 |
|
Recoveries: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial |
|
|
389 |
|
|
|
816 |
|
|
|
902 |
|
|
|
452 |
|
|
|
4,168 |
|
|
2,559 |
|
|
|
5,092 |
|
Commercial real estate |
|
|
217 |
|
|
|
373 |
|
|
|
514 |
|
|
|
200 |
|
|
|
904 |
|
|
1,304 |
|
|
|
1,835 |
|
Home equity |
|
|
461 |
|
|
|
313 |
|
|
|
328 |
|
|
|
101 |
|
|
|
77 |
|
|
1,203 |
|
|
|
528 |
|
Residential real estate |
|
|
85 |
|
|
|
5 |
|
|
|
36 |
|
|
|
204 |
|
|
|
69 |
|
|
330 |
|
|
|
184 |
|
Premium finance receivables |
|
|
1,240 |
|
|
|
1,728 |
|
|
|
3,239 |
|
|
|
1,782 |
|
|
|
1,445 |
|
|
7,989 |
|
|
|
5,108 |
|
Consumer and other |
|
|
26 |
|
|
|
92 |
|
|
|
34 |
|
|
|
32 |
|
|
|
30 |
|
|
184 |
|
|
|
149 |
|
Total recoveries |
|
|
2,418 |
|
|
|
3,327 |
|
|
|
5,053 |
|
|
|
2,771 |
|
|
|
6,693 |
|
|
13,569 |
|
|
|
12,896 |
|
Net charge-offs |
|
|
(6,181 |
) |
|
|
(2 |
) |
|
|
(1,922 |
) |
|
|
(13,345 |
) |
|
|
(10,337 |
) |
|
(21,450 |
) |
|
|
(40,309 |
) |
Allowance for credit losses at period end |
|
$ |
299,731 |
|
|
$ |
296,138 |
|
|
$ |
304,121 |
|
|
$ |
321,308 |
|
|
$ |
379,969 |
|
$ |
299,731 |
|
|
$ |
379,969 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Annualized net charge-offs (recoveries) by category as a
percentage of its own respective
category’s average: |
|
|
|
Commercial |
|
|
0.14 |
% |
|
|
0.02 |
% |
|
|
0.08 |
% |
|
|
0.37 |
% |
|
|
0.03 |
% |
|
0.16 |
% |
|
|
0.12 |
% |
Commercial real estate |
|
|
0.01 |
|
|
|
0.00 |
|
|
|
0.04 |
|
|
|
0.04 |
|
|
|
0.27 |
|
|
0.02 |
|
|
|
0.17 |
|
Home equity |
|
|
(0.38 |
) |
|
|
(0.28 |
) |
|
|
(0.20 |
) |
|
|
(0.10 |
) |
|
|
0.55 |
|
|
(0.23 |
) |
|
|
0.33 |
|
Residential real estate |
|
|
0.25 |
|
|
|
0.00 |
|
|
|
(0.01 |
) |
|
|
(0.06 |
) |
|
|
0.02 |
|
|
0.05 |
|
|
|
0.06 |
|
Premium finance receivables |
|
|
0.04 |
|
|
|
(0.01 |
) |
|
|
(0.04 |
) |
|
|
0.06 |
|
|
|
0.11 |
|
|
0.01 |
|
|
|
0.11 |
|
Consumer and other |
|
|
0.95 |
|
|
|
0.26 |
|
|
|
0.69 |
|
|
|
0.57 |
|
|
|
0.78 |
|
|
0.66 |
|
|
|
0.52 |
|
Total loans, net of unearned income |
|
|
0.07 |
% |
|
|
0.00 |
% |
|
|
0.02 |
% |
|
|
0.17 |
% |
|
|
0.13 |
% |
|
0.06 |
% |
|
|
0.13 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans at period end |
|
$ |
34,789,104 |
|
|
$ |
33,264,043 |
|
|
$ |
32,911,187 |
|
|
$ |
33,171,233 |
|
|
$ |
32,079,073 |
|
|
|
|
Allowance for loan losses as a percentage of loans at
period end |
|
|
0.71 |
% |
|
|
0.75 |
% |
|
|
0.79 |
% |
|
|
0.84 |
% |
|
|
1.00 |
% |
|
|
|
Allowance for loan and unfunded lending-related commitment
losses as a percentage of loans at period end |
|
|
0.86 |
|
|
|
0.89 |
|
|
|
0.92 |
|
|
|
0.97 |
|
|
|
1.18 |
|
|
|
|
Allowance for loan and unfunded lending-related commitment
losses as a percentage of loans at period end, excluding PPP
loans |
|
|
0.88 |
|
|
|
0.92 |
|
|
|
0.98 |
|
|
|
1.08 |
|
|
|
1.29 |
|
|
|
|
(1) The initial allowance for
credit losses on purchased credit deteriorated (“PCD”) loans
acquired during the period measured approximately $2.8 million, of
which approximately $2.3 million was charged-off related to PCD
loans that met the Company’s charge-off policy at the time of
acquisition. After considering these loans that were immediately
charged-off, the net impact of PCD allowance for credit losses at
the acquisition date was approximately $470,000.
TABLE 11: ALLOWANCE AND PROVISION FOR CREDIT LOSSES BY
COMPONENT
|
|
Three Months Ended |
Years Ended |
|
|
Dec 31, |
|
Sep 30, |
|
Jun 30, |
|
Mar 31, |
|
Dec 31, |
Dec 31, |
|
Dec 31, |
(In thousands) |
|
|
2021 |
|
|
|
2021 |
|
|
|
2021 |
|
|
|
2021 |
|
|
|
2020 |
|
|
2021 |
|
|
|
2020 |
|
Provision for loan losses |
|
$ |
4,929 |
|
|
$ |
(12,410 |
) |
|
$ |
(14,731 |
) |
|
$ |
(28,351 |
) |
|
$ |
3,597 |
|
$ |
(50,563 |
) |
|
$ |
188,493 |
|
Provision for unfunded lending-related commitments losses |
|
|
4,375 |
|
|
|
4,501 |
|
|
|
(558 |
) |
|
|
(17,035 |
) |
|
|
(2,413 |
) |
|
(8,717 |
) |
|
|
25,742 |
|
Provision for held-to-maturity securities losses |
|
|
(5 |
) |
|
|
(7 |
) |
|
|
(10 |
) |
|
|
39 |
|
|
|
(4 |
) |
|
17 |
|
|
|
(15 |
) |
Provision for credit losses |
|
$ |
9,299 |
|
|
$ |
(7,916 |
) |
|
$ |
(15,299 |
) |
|
$ |
(45,347 |
) |
|
$ |
1,180 |
|
$ |
(59,263 |
) |
|
$ |
214,220 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Allowance for loan losses |
|
$ |
247,835 |
|
|
$ |
248,612 |
|
|
$ |
261,089 |
|
|
$ |
277,709 |
|
|
$ |
319,374 |
|
|
|
|
Allowance for unfunded lending-related commitments losses |
|
|
51,818 |
|
|
|
47,443 |
|
|
|
42,942 |
|
|
|
43,500 |
|
|
|
60,536 |
|
|
|
|
Allowance for loan losses and unfunded lending-related commitments
losses |
|
|
299,653 |
|
|
|
296,055 |
|
|
|
304,031 |
|
|
|
321,209 |
|
|
|
379,910 |
|
|
|
|
Allowance for held-to-maturity securities losses |
|
|
78 |
|
|
|
83 |
|
|
|
90 |
|
|
|
99 |
|
|
|
59 |
|
|
|
|
Allowance for credit losses |
|
$ |
299,731 |
|
|
$ |
296,138 |
|
|
$ |
304,121 |
|
|
$ |
321,308 |
|
|
$ |
379,969 |
|
|
|
|
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
December 31, 2021, September 30, 2021, and
June 30, 2021.
|
As of Dec 31, 2021 |
As of Sep 30, 2021 |
As of Jun 30, 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 |
$ |
11,345,785 |
|
$ |
119,305 |
|
1.05 |
% |
$ |
10,105,984 |
|
$ |
109,780 |
|
1.09 |
% |
$ |
9,562,869 |
|
$ |
98,505 |
|
1.03 |
% |
Commercial PPP loans |
|
558,283 |
|
|
2 |
|
0.00 |
|
|
1,081,988 |
|
|
2 |
|
0.00 |
|
|
1,879,407 |
|
|
2 |
|
0.00 |
|
Commercial real estate: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Construction and development |
|
1,356,204 |
|
|
35,206 |
|
2.60 |
|
|
1,343,715 |
|
|
34,101 |
|
2.54 |
|
|
1,385,249 |
|
|
38,550 |
|
2.78 |
|
Non-construction |
|
7,634,082 |
|
|
109,377 |
|
1.43 |
|
|
7,541,999 |
|
|
105,934 |
|
1.40 |
|
|
7,293,120 |
|
|
119,972 |
|
1.65 |
|
Home
equity |
|
335,155 |
|
|
10,699 |
|
3.19 |
|
|
347,662 |
|
|
10,939 |
|
3.15 |
|
|
369,806 |
|
|
11,207 |
|
3.03 |
|
Residential real estate |
|
1,637,099 |
|
|
8,782 |
|
0.54 |
|
|
1,547,736 |
|
|
16,272 |
|
1.05 |
|
|
1,530,285 |
|
|
15,684 |
|
1.02 |
|
Premium finance receivables |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial insurance loans |
|
4,855,487 |
|
|
15,246 |
|
0.31 |
|
|
4,616,977 |
|
|
17,996 |
|
0.39 |
|
|
4,521,871 |
|
|
19,346 |
|
0.43 |
|
Life insurance loans |
|
7,042,810 |
|
|
613 |
|
0.01 |
|
|
6,655,453 |
|
|
579 |
|
0.01 |
|
|
6,359,556 |
|
|
553 |
|
0.01 |
|
Consumer
and other |
|
24,199 |
|
|
423 |
|
1.75 |
|
|
22,529 |
|
|
452 |
|
2.01 |
|
|
9,024 |
|
|
212 |
|
2.35 |
|
Total loans, net of unearned income |
$ |
34,789,104 |
|
$ |
299,653 |
|
0.86 |
% |
$ |
33,264,043 |
|
$ |
296,055 |
|
0.89 |
% |
$ |
32,911,187 |
|
$ |
304,031 |
|
0.92 |
% |
Total loans, net of unearned income, excluding PPP
loans |
$ |
34,230,821 |
|
$ |
299,651 |
|
0.88 |
% |
$ |
32,182,055 |
|
$ |
296,053 |
|
0.92 |
% |
$ |
31,031,780 |
|
$ |
304,029 |
|
0.98 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total core loans (1) |
$ |
19,599,090 |
|
$ |
260,511 |
|
1.33 |
% |
$ |
18,690,730 |
|
$ |
257,788 |
|
1.38 |
% |
$ |
17,989,306 |
|
$ |
267,999 |
|
1.49 |
% |
Total niche loans (1) |
|
14,631,731 |
|
|
39,140 |
|
0.27 |
|
|
13,491,325 |
|
|
38,265 |
|
0.28 |
|
|
13,042,474 |
|
|
36,030 |
|
0.28 |
|
Total PPP loans |
|
558,283 |
|
|
2 |
|
0.00 |
|
|
1,081,988 |
|
|
2 |
|
0.00 |
|
|
1,879,407 |
|
|
2 |
|
0.00 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) See Table 1 for additional detail on core
and niche loans.
TABLE 13: LOAN PORTFOLIO
AGING
(Dollars in thousands) |
|
Dec 31, 2021 |
|
Sep 30, 2021 |
|
Jun 30, 2021 |
|
Mar 31, 2021 |
|
Dec 31, 2020 |
Loan Balances: |
|
|
|
|
|
|
|
|
|
|
Commercial |
|
|
|
|
|
|
|
|
|
|
Nonaccrual |
|
$ |
20,399 |
|
$ |
26,468 |
|
$ |
23,232 |
|
$ |
22,459 |
|
$ |
21,743 |
90+ days and still accruing |
|
|
15 |
|
|
— |
|
|
1,244 |
|
|
— |
|
|
307 |
60-89 days past due |
|
|
24,262 |
|
|
9,768 |
|
|
5,204 |
|
|
13,292 |
|
|
6,900 |
30-59 days past due |
|
|
43,861 |
|
|
25,224 |
|
|
18,478 |
|
|
35,541 |
|
|
44,381 |
Current |
|
|
11,815,531 |
|
|
11,126,512 |
|
|
11,394,118 |
|
|
12,636,915 |
|
|
11,882,636 |
Total commercial |
|
$ |
11,904,068 |
|
$ |
11,187,972 |
|
$ |
11,442,276 |
|
$ |
12,708,207 |
|
$ |
11,955,967 |
Commercial real estate |
|
|
|
|
|
|
|
|
|
|
Nonaccrual |
|
$ |
21,746 |
|
$ |
23,706 |
|
$ |
26,035 |
|
$ |
34,380 |
|
$ |
46,107 |
90+ days and still accruing |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
60-89 days past due |
|
|
284 |
|
|
5,395 |
|
|
4,382 |
|
|
8,156 |
|
|
5,178 |
30-59 days past due |
|
|
40,443 |
|
|
79,818 |
|
|
19,698 |
|
|
70,168 |
|
|
32,116 |
Current |
|
|
8,927,813 |
|
|
8,776,795 |
|
|
8,628,254 |
|
|
8,432,075 |
|
|
8,410,731 |
Total commercial real estate |
|
$ |
8,990,286 |
|
$ |
8,885,714 |
|
$ |
8,678,369 |
|
$ |
8,544,779 |
|
$ |
8,494,132 |
Home equity |
|
|
|
|
|
|
|
|
|
|
Nonaccrual |
|
$ |
2,574 |
|
$ |
3,449 |
|
$ |
3,478 |
|
$ |
5,536 |
|
$ |
6,529 |
90+ days and still accruing |
|
|
— |
|
|
164 |
|
|
— |
|
|
— |
|
|
— |
60-89 days past due |
|
|
— |
|
|
340 |
|
|
301 |
|
|
492 |
|
|
47 |
30-59 days past due |
|
|
1,120 |
|
|
867 |
|
|
777 |
|
|
780 |
|
|
637 |
Current |
|
|
331,461 |
|
|
342,842 |
|
|
365,250 |
|
|
383,445 |
|
|
418,050 |
Total home equity |
|
$ |
335,155 |
|
$ |
347,662 |
|
$ |
369,806 |
|
$ |
390,253 |
|
$ |
425,263 |
Residential real estate |
|
|
|
|
|
|
|
|
|
|
Nonaccrual |
|
$ |
16,440 |
|
$ |
22,633 |
|
$ |
23,050 |
|
$ |
21,553 |
|
$ |
26,071 |
90+ days and still accruing |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
60-89 days past due |
|
|
982 |
|
|
1,540 |
|
|
1,584 |
|
|
944 |
|
|
1,635 |
30-59 days past due |
|
|
12,420 |
|
|
1,076 |
|
|
2,139 |
|
|
13,768 |
|
|
12,584 |
Current |
|
|
1,607,257 |
|
|
1,522,487 |
|
|
1,503,512 |
|
|
1,385,708 |
|
|
1,219,308 |
Total residential real estate |
|
$ |
1,637,099 |
|
$ |
1,547,736 |
|
$ |
1,530,285 |
|
$ |
1,421,973 |
|
$ |
1,259,598 |
Premium finance receivables |
|
|
|
|
|
|
|
|
|
|
Nonaccrual |
|
$ |
5,433 |
|
$ |
7,300 |
|
$ |
6,418 |
|
$ |
9,690 |
|
$ |
13,264 |
90+ days and still accruing |
|
|
7,217 |
|
|
5,811 |
|
|
3,570 |
|
|
4,783 |
|
|
12,792 |
60-89 days past due |
|
|
28,104 |
|
|
15,804 |
|
|
7,759 |
|
|
5,113 |
|
|
27,801 |
30-59 days past due |
|
|
89,070 |
|
|
21,654 |
|
|
32,758 |
|
|
31,373 |
|
|
49,274 |
Current |
|
|
11,768,473 |
|
|
11,221,861 |
|
|
10,830,922 |
|
|
10,019,079 |
|
|
9,808,794 |
Total premium finance receivables |
|
$ |
11,898,297 |
|
$ |
11,272,430 |
|
$ |
10,881,427 |
|
$ |
10,070,038 |
|
$ |
9,911,925 |
Consumer and other |
|
|
|
|
|
|
|
|
|
|
Nonaccrual |
|
$ |
477 |
|
$ |
384 |
|
$ |
485 |
|
$ |
497 |
|
$ |
436 |
90+ days and still accruing |
|
|
137 |
|
|
126 |
|
|
178 |
|
|
161 |
|
|
264 |
60-89 days past due |
|
|
34 |
|
|
16 |
|
|
22 |
|
|
8 |
|
|
24 |
30-59 days past due |
|
|
509 |
|
|
125 |
|
|
75 |
|
|
74 |
|
|
136 |
Current |
|
|
23,042 |
|
|
21,878 |
|
|
8,264 |
|
|
35,243 |
|
|
31,328 |
Total consumer and other |
|
$ |
24,199 |
|
$ |
22,529 |
|
$ |
9,024 |
|
$ |
35,983 |
|
$ |
32,188 |
Total loans, net of unearned income |
|
|
|
|
|
|
|
|
|
|
Nonaccrual |
|
$ |
67,069 |
|
$ |
83,940 |
|
$ |
82,698 |
|
$ |
94,115 |
|
$ |
114,150 |
90+ days and still accruing |
|
|
7,369 |
|
|
6,101 |
|
|
4,992 |
|
|
4,944 |
|
|
13,363 |
60-89 days past due |
|
|
53,666 |
|
|
32,863 |
|
|
19,252 |
|
|
28,005 |
|
|
41,585 |
30-59 days past due |
|
|
187,423 |
|
|
128,764 |
|
|
73,925 |
|
|
151,704 |
|
|
139,128 |
Current |
|
|
34,473,577 |
|
|
33,012,375 |
|
|
32,730,320 |
|
|
32,892,465 |
|
|
31,770,847 |
Total loans, net of unearned income |
|
$ |
34,789,104 |
|
$ |
33,264,043 |
|
$ |
32,911,187 |
|
$ |
33,171,233 |
|
$ |
32,079,073 |
TABLE 14: NON-PERFORMING ASSETS AND TROUBLED DEBT
RESTRUCTURINGS ("TDRs")
|
Dec 31, |
|
Sep 30, |
|
Jun 30, |
|
Mar 31, |
|
Dec 31, |
(Dollars in thousands) |
|
2021 |
|
|
|
2021 |
|
|
|
2021 |
|
|
|
2021 |
|
|
|
2020 |
|
Loans past due greater than 90 days and still accruing
(1): |
|
|
|
|
|
|
|
|
|
Commercial |
$ |
15 |
|
|
$ |
— |
|
|
$ |
1,244 |
|
|
$ |
— |
|
|
$ |
307 |
|
Commercial real estate |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Home
equity |
|
— |
|
|
|
164 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Residential real estate |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Premium
finance receivables |
|
7,217 |
|
|
|
5,811 |
|
|
|
3,570 |
|
|
|
4,783 |
|
|
|
12,792 |
|
Consumer
and other |
|
137 |
|
|
|
126 |
|
|
|
178 |
|
|
|
161 |
|
|
|
264 |
|
Total loans past due greater than 90 days and still accruing |
|
7,369 |
|
|
|
6,101 |
|
|
|
4,992 |
|
|
|
4,944 |
|
|
|
13,363 |
|
Non-accrual loans: |
|
|
|
|
|
|
|
|
|
Commercial |
|
20,399 |
|
|
|
26,468 |
|
|
|
23,232 |
|
|
|
22,459 |
|
|
|
21,743 |
|
Commercial real estate |
|
21,746 |
|
|
|
23,706 |
|
|
|
26,035 |
|
|
|
34,380 |
|
|
|
46,107 |
|
Home
equity |
|
2,574 |
|
|
|
3,449 |
|
|
|
3,478 |
|
|
|
5,536 |
|
|
|
6,529 |
|
Residential real estate |
|
16,440 |
|
|
|
22,633 |
|
|
|
23,050 |
|
|
|
21,553 |
|
|
|
26,071 |
|
Premium
finance receivables |
|
5,433 |
|
|
|
7,300 |
|
|
|
6,418 |
|
|
|
9,690 |
|
|
|
13,264 |
|
Consumer
and other |
|
477 |
|
|
|
384 |
|
|
|
485 |
|
|
|
497 |
|
|
|
436 |
|
Total non-accrual loans |
|
67,069 |
|
|
|
83,940 |
|
|
|
82,698 |
|
|
|
94,115 |
|
|
|
114,150 |
|
Total non-performing loans: |
|
|
|
|
|
|
|
|
|
Commercial |
|
20,414 |
|
|
|
26,468 |
|
|
|
24,476 |
|
|
|
22,459 |
|
|
|
22,050 |
|
Commercial real estate |
|
21,746 |
|
|
|
23,706 |
|
|
|
26,035 |
|
|
|
34,380 |
|
|
|
46,107 |
|
Home
equity |
|
2,574 |
|
|
|
3,613 |
|
|
|
3,478 |
|
|
|
5,536 |
|
|
|
6,529 |
|
Residential real estate |
|
16,440 |
|
|
|
22,633 |
|
|
|
23,050 |
|
|
|
21,553 |
|
|
|
26,071 |
|
Premium
finance receivables |
|
12,650 |
|
|
|
13,111 |
|
|
|
9,988 |
|
|
|
14,473 |
|
|
|
26,056 |
|
Consumer
and other |
|
614 |
|
|
|
510 |
|
|
|
663 |
|
|
|
658 |
|
|
|
700 |
|
Total non-performing loans |
$ |
74,438 |
|
|
$ |
90,041 |
|
|
$ |
87,690 |
|
|
$ |
99,059 |
|
|
$ |
127,513 |
|
Other
real estate owned |
|
1,959 |
|
|
|
9,934 |
|
|
|
10,510 |
|
|
|
8,679 |
|
|
|
9,711 |
|
Other
real estate owned - from acquisitions |
|
2,312 |
|
|
|
3,911 |
|
|
|
5,062 |
|
|
|
7,134 |
|
|
|
6,847 |
|
Other
repossessed assets |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Total non-performing assets |
$ |
78,709 |
|
|
$ |
103,886 |
|
|
$ |
103,262 |
|
|
$ |
114,872 |
|
|
$ |
144,071 |
|
Accruing
TDRs not included within non-performing assets |
$ |
37,486 |
|
|
$ |
38,468 |
|
|
$ |
44,019 |
|
|
$ |
46,151 |
|
|
$ |
47,023 |
|
Total non-performing loans by category as a percent of its
own respective category’s period-end balance: |
|
|
|
|
|
|
|
|
|
Commercial |
|
0.17 |
% |
|
|
0.24 |
% |
|
|
0.21 |
% |
|
|
0.18 |
% |
|
|
0.18 |
% |
Commercial real estate |
|
0.24 |
|
|
|
0.27 |
|
|
|
0.30 |
|
|
|
0.40 |
|
|
|
0.54 |
|
Home
equity |
|
0.77 |
|
|
|
1.04 |
|
|
|
0.94 |
|
|
|
1.42 |
|
|
|
1.54 |
|
Residential real estate |
|
1.00 |
|
|
|
1.46 |
|
|
|
1.51 |
|
|
|
1.52 |
|
|
|
2.07 |
|
Premium
finance receivables |
|
0.11 |
|
|
|
0.12 |
|
|
|
0.09 |
|
|
|
0.14 |
|
|
|
0.26 |
|
Consumer
and other |
|
2.54 |
|
|
|
2.26 |
|
|
|
7.35 |
|
|
|
1.83 |
|
|
|
2.17 |
|
Total loans, net of unearned income |
|
0.21 |
% |
|
|
0.27 |
% |
|
|
0.27 |
% |
|
|
0.30 |
% |
|
|
0.40 |
% |
Total non-performing assets as a percentage of total
assets |
|
0.16 |
% |
|
|
0.22 |
% |
|
|
0.22 |
% |
|
|
0.25 |
% |
|
|
0.32 |
% |
Allowance for loan losses and unfunded lending-related
commitments losses as a percentage of non-accrual
loans |
|
446.78 |
% |
|
|
352.70 |
% |
|
|
367.64 |
% |
|
|
341.29 |
% |
|
|
332.82 |
% |
|
|
|
|
|
|
|
|
|
|
(1) As of
December 31, 2021, September 30, 2021, and June 30,
2021, approximately $320,000, $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, and
December 31, 2020 were past due greater than 90 days and still
accruing interest.
Non-performing Loans Rollforward
|
Three Months Ended |
Years Ended |
|
Dec 31, |
|
Sep 30, |
|
Jun 30, |
|
Mar 31, |
|
Dec 31, |
Dec 31, |
|
Dec 31, |
(In thousands) |
|
2021 |
|
|
|
2021 |
|
|
|
2021 |
|
|
|
2021 |
|
|
|
2020 |
|
|
2021 |
|
|
|
2020 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance at beginning of period |
$ |
90,041 |
|
|
$ |
87,690 |
|
|
$ |
99,059 |
|
|
$ |
127,513 |
|
|
$ |
173,103 |
|
$ |
127,513 |
|
|
$ |
117,588 |
|
Additions from becoming non-performing in the respective
period |
|
6,851 |
|
|
|
9,341 |
|
|
|
12,762 |
|
|
|
9,894 |
|
|
|
13,224 |
|
|
38,848 |
|
|
|
85,993 |
|
Additions from the adoption of ASU 2016-13 |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
— |
|
|
|
37,285 |
|
Return to performing status |
|
(6,616 |
) |
|
|
(3,322 |
) |
|
|
— |
|
|
|
(654 |
) |
|
|
(1,000 |
) |
|
(10,592 |
) |
|
|
(10,254 |
) |
Payments received |
|
(13,212 |
) |
|
|
(5,568 |
) |
|
|
(12,312 |
) |
|
|
(22,731 |
) |
|
|
(30,146 |
) |
|
(53,823 |
) |
|
|
(53,029 |
) |
Transfer to OREO and other repossessed assets |
|
(275 |
) |
|
|
(720 |
) |
|
|
(3,660 |
) |
|
|
(1,372 |
) |
|
|
(12,662 |
) |
|
(6,027 |
) |
|
|
(14,557 |
) |
Charge-offs, net |
|
(5,167 |
) |
|
|
(548 |
) |
|
|
(4,684 |
) |
|
|
(2,952 |
) |
|
|
(7,817 |
) |
|
(13,351 |
) |
|
|
(29,835 |
) |
Net change for niche loans (1) |
|
2,816 |
|
|
|
3,168 |
|
|
|
(3,475 |
) |
|
|
(10,639 |
) |
|
|
(7,189 |
) |
|
(8,130 |
) |
|
|
(5,678 |
) |
Balance at end of period |
$ |
74,438 |
|
|
$ |
90,041 |
|
|
$ |
87,690 |
|
|
$ |
99,059 |
|
|
$ |
127,513 |
|
$ |
74,438 |
|
|
$ |
127,513 |
|
(1) This includes activity for premium finance
receivables and indirect consumer loans.
TDRs
|
Dec 31, |
|
Sep 30, |
|
Jun 30, |
|
Mar 31, |
|
Dec 31, |
(In thousands) |
|
2021 |
|
|
2021 |
|
|
2021 |
|
|
2021 |
|
|
2020 |
Accruing TDRs: |
|
|
|
|
|
|
|
|
|
Commercial |
$ |
4,131 |
|
$ |
4,532 |
|
$ |
6,911 |
|
$ |
7,536 |
|
$ |
7,699 |
Commercial real estate |
|
8,421 |
|
|
8,385 |
|
|
9,659 |
|
|
9,478 |
|
|
10,549 |
Residential real estate and other |
|
24,934 |
|
|
25,551 |
|
|
27,449 |
|
|
29,137 |
|
|
28,775 |
Total accrual |
$ |
37,486 |
|
$ |
38,468 |
|
$ |
44,019 |
|
$ |
46,151 |
|
$ |
47,023 |
Non-accrual TDRs: (1) |
|
|
|
|
|
|
|
|
|
Commercial |
$ |
6,746 |
|
$ |
3,079 |
|
$ |
4,104 |
|
$ |
5,583 |
|
$ |
10,491 |
Commercial real estate |
|
2,050 |
|
|
3,239 |
|
|
3,434 |
|
|
1,309 |
|
|
6,177 |
Residential real estate and other |
|
3,027 |
|
|
3,685 |
|
|
4,190 |
|
|
3,540 |
|
|
4,501 |
Total non-accrual |
$ |
11,823 |
|
$ |
10,003 |
|
$ |
11,728 |
|
$ |
10,432 |
|
$ |
21,169 |
Total TDRs: |
|
|
|
|
|
|
|
|
|
Commercial |
$ |
10,877 |
|
$ |
7,611 |
|
$ |
11,015 |
|
$ |
13,119 |
|
$ |
18,190 |
Commercial real estate |
|
10,471 |
|
|
11,624 |
|
|
13,093 |
|
|
10,787 |
|
|
16,726 |
Residential real estate and other |
|
27,961 |
|
|
29,236 |
|
|
31,639 |
|
|
32,677 |
|
|
33,276 |
Total TDRs |
$ |
49,309 |
|
$ |
48,471 |
|
$ |
55,747 |
|
$ |
56,583 |
|
$ |
68,192 |
(1) Included in total non-performing
loans.
Other Real Estate Owned
|
Three Months Ended |
|
Dec 31, |
|
Sep 30, |
|
Jun 30, |
|
Mar 31, |
|
Dec 31, |
(In thousands) |
|
2021 |
|
|
|
2021 |
|
|
|
2021 |
|
|
|
2021 |
|
|
|
2020 |
|
Balance at beginning of period |
$ |
13,845 |
|
|
$ |
15,572 |
|
|
$ |
15,813 |
|
|
$ |
16,558 |
|
|
$ |
9,217 |
|
Disposals/resolved |
|
(9,664 |
) |
|
|
(1,949 |
) |
|
|
(3,152 |
) |
|
|
(2,162 |
) |
|
|
(3,839 |
) |
Transfers in at fair value, less costs to sell |
|
275 |
|
|
|
315 |
|
|
|
3,660 |
|
|
|
1,587 |
|
|
|
11,508 |
|
Fair value adjustments |
|
(185 |
) |
|
|
(93 |
) |
|
|
(749 |
) |
|
|
(170 |
) |
|
|
(328 |
) |
Balance at end of period |
$ |
4,271 |
|
|
$ |
13,845 |
|
|
$ |
15,572 |
|
|
$ |
15,813 |
|
|
$ |
16,558 |
|
|
|
|
|
|
|
|
|
|
|
|
Period End |
|
Dec 31, |
|
Sep 30, |
|
Jun 30, |
|
Mar 31, |
|
Dec 31, |
Balance by Property Type: |
|
2021 |
|
|
|
2021 |
|
|
|
2021 |
|
|
|
2021 |
|
|
|
2020 |
|
Residential real estate |
$ |
1,310 |
|
|
$ |
1,592 |
|
|
$ |
1,952 |
|
|
$ |
2,713 |
|
|
$ |
2,324 |
|
Residential real estate development |
|
— |
|
|
|
934 |
|
|
|
1,030 |
|
|
|
1,287 |
|
|
|
1,691 |
|
Commercial real estate |
|
2,961 |
|
|
|
11,319 |
|
|
|
12,590 |
|
|
|
11,813 |
|
|
|
12,543 |
|
Total |
$ |
4,271 |
|
|
$ |
13,845 |
|
|
$ |
15,572 |
|
|
$ |
15,813 |
|
|
$ |
16,558 |
|
TABLE 15: NON-INTEREST INCOME
|
Three Months Ended |
|
Q4 2021 compared to
Q3 2021 |
|
Q4 2021 compared to
Q4 2020 |
|
Dec 31, |
|
Sep 30, |
|
Jun 30, |
|
Mar 31, |
|
Dec 31, |
|
|
(Dollars in thousands) |
|
2021 |
|
|
|
2021 |
|
|
|
2021 |
|
|
|
2021 |
|
|
|
2020 |
|
|
$ Change |
|
% Change |
|
$ Change |
|
% Change |
Brokerage |
$ |
5,292 |
|
|
$ |
5,230 |
|
|
$ |
5,148 |
|
|
$ |
5,040 |
|
|
$ |
4,740 |
|
|
$ |
62 |
|
|
1 |
% |
|
$ |
552 |
|
|
12 |
% |
Trust and asset management |
|
27,197 |
|
|
|
26,301 |
|
|
|
25,542 |
|
|
|
24,269 |
|
|
|
22,062 |
|
|
|
896 |
|
|
3 |
|
|
|
5,135 |
|
|
23 |
|
Total wealth management |
|
32,489 |
|
|
|
31,531 |
|
|
|
30,690 |
|
|
|
29,309 |
|
|
|
26,802 |
|
|
|
958 |
|
|
3 |
|
|
|
5,687 |
|
|
21 |
|
Mortgage banking |
|
53,138 |
|
|
|
55,794 |
|
|
|
50,584 |
|
|
|
113,494 |
|
|
|
86,819 |
|
|
|
(2,656 |
) |
|
(5 |
) |
|
|
(33,681 |
) |
|
(39 |
) |
Service charges on deposit accounts |
|
14,734 |
|
|
|
14,149 |
|
|
|
13,249 |
|
|
|
12,036 |
|
|
|
11,841 |
|
|
|
585 |
|
|
4 |
|
|
|
2,893 |
|
|
24 |
|
(Losses) gains on investment securities, net |
|
(1,067 |
) |
|
|
(2,431 |
) |
|
|
1,285 |
|
|
|
1,154 |
|
|
|
1,214 |
|
|
|
1,364 |
|
|
56 |
|
|
|
(2,281 |
) |
|
NM |
|
Fees from covered call options |
|
1,128 |
|
|
|
1,157 |
|
|
|
1,388 |
|
|
|
— |
|
|
|
— |
|
|
|
(29 |
) |
|
(3 |
) |
|
|
1,128 |
|
|
NM |
|
Trading gains (losses), net |
|
206 |
|
|
|
58 |
|
|
|
(438 |
) |
|
|
419 |
|
|
|
(102 |
) |
|
|
148 |
|
|
NM |
|
|
|
308 |
|
|
NM |
|
Operating lease income, net |
|
14,204 |
|
|
|
12,807 |
|
|
|
12,240 |
|
|
|
14,440 |
|
|
|
12,118 |
|
|
|
1,397 |
|
|
11 |
|
|
|
2,086 |
|
|
17 |
|
Other: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest rate swap fees |
|
3,526 |
|
|
|
4,868 |
|
|
|
2,820 |
|
|
|
2,488 |
|
|
|
4,930 |
|
|
|
(1,342 |
) |
|
(28 |
) |
|
|
(1,404 |
) |
|
(28 |
) |
BOLI |
|
1,192 |
|
|
|
2,154 |
|
|
|
1,342 |
|
|
|
1,124 |
|
|
|
2,846 |
|
|
|
(962 |
) |
|
(45 |
) |
|
|
(1,654 |
) |
|
(58 |
) |
Administrative services |
|
1,846 |
|
|
|
1,359 |
|
|
|
1,228 |
|
|
|
1,256 |
|
|
|
1,263 |
|
|
|
487 |
|
|
36 |
|
|
|
583 |
|
|
46 |
|
Foreign currency remeasurement gains (losses) |
|
111 |
|
|
|
77 |
|
|
|
(782 |
) |
|
|
99 |
|
|
|
(208 |
) |
|
|
34 |
|
|
44 |
|
|
|
319 |
|
|
NM |
|
Early pay-offs of capital leases |
|
249 |
|
|
|
209 |
|
|
|
195 |
|
|
|
(52 |
) |
|
|
118 |
|
|
|
40 |
|
|
19 |
|
|
|
131 |
|
|
NM |
|
Miscellaneous |
|
12,011 |
|
|
|
14,742 |
|
|
|
15,572 |
|
|
|
10,739 |
|
|
|
10,720 |
|
|
|
(2,731 |
) |
|
(19 |
) |
|
|
1,291 |
|
|
12 |
|
Total Other |
|
18,935 |
|
|
|
23,409 |
|
|
|
20,375 |
|
|
|
15,654 |
|
|
|
19,669 |
|
|
|
(4,474 |
) |
|
(19 |
) |
|
|
(734 |
) |
|
(4 |
) |
Total Non-Interest Income |
$ |
133,767 |
|
|
$ |
136,474 |
|
|
$ |
129,373 |
|
|
$ |
186,506 |
|
|
$ |
158,361 |
|
|
$ |
(2,707 |
) |
|
(2 |
)% |
|
$ |
(24,594 |
) |
|
(16 |
)% |
NM - Not meaningful.
|
Years Ended |
|
|
|
|
|
Dec 31, |
|
Dec 31, |
|
$ |
|
% |
(Dollars in thousands) |
|
2021 |
|
|
|
2020 |
|
|
Change |
|
Change |
Brokerage |
$ |
20,710 |
|
|
$ |
18,731 |
|
|
$ |
1,979 |
|
|
11 |
% |
Trust and asset management |
|
103,309 |
|
|
|
81,605 |
|
|
|
21,704 |
|
|
27 |
|
Total wealth management |
|
124,019 |
|
|
|
100,336 |
|
|
|
23,683 |
|
|
24 |
|
Mortgage banking |
|
273,010 |
|
|
|
346,013 |
|
|
|
(73,003 |
) |
|
(21 |
) |
Service charges on deposit accounts |
|
54,168 |
|
|
|
45,023 |
|
|
|
9,145 |
|
|
20 |
|
Losses on investment securities, net |
|
(1,059 |
) |
|
|
(1,926 |
) |
|
|
867 |
|
|
45 |
|
Fees from covered call options |
|
3,673 |
|
|
|
2,292 |
|
|
|
1,381 |
|
|
60 |
|
Trading gains (losses), net |
|
245 |
|
|
|
(1,004 |
) |
|
|
1,249 |
|
|
NM |
|
Operating lease income, net |
|
53,691 |
|
|
|
47,604 |
|
|
|
6,087 |
|
|
13 |
|
Other: |
|
|
|
|
|
|
|
Interest rate swap fees |
|
13,702 |
|
|
|
20,718 |
|
|
|
(7,016 |
) |
|
(34 |
) |
BOLI |
|
5,812 |
|
|
|
4,730 |
|
|
|
1,082 |
|
|
23 |
|
Administrative services |
|
5,689 |
|
|
|
4,385 |
|
|
|
1,304 |
|
|
30 |
|
Foreign currency remeasurement loss |
|
(495 |
) |
|
|
(621 |
) |
|
|
126 |
|
|
20 |
|
Early pay-offs of leases |
|
601 |
|
|
|
632 |
|
|
|
(31 |
) |
|
(5 |
) |
Miscellaneous |
|
53,064 |
|
|
|
36,007 |
|
|
|
17,057 |
|
|
47 |
|
Total Other |
|
78,373 |
|
|
|
65,851 |
|
|
|
12,522 |
|
|
19 |
|
Total Non-Interest Income |
$ |
586,120 |
|
|
$ |
604,189 |
|
|
$ |
(18,069 |
) |
|
(3 |
)% |
NM - Not meaningful.
TABLE 16: MORTGAGE BANKING
|
Three Months Ended |
Years Ended |
(Dollars in thousands) |
Dec 31,
2021 |
|
Sep 30,
2021 |
|
Jun 30,
2021 |
|
Mar 31,
2021 |
|
Dec 31,
2020 |
Dec 31,
2021 |
|
Dec 31,
2020 |
Originations: |
|
|
|
|
|
|
|
|
|
|
|
|
Retail
originations |
$ |
980,627 |
|
|
$ |
1,153,265 |
|
|
$ |
1,328,721 |
|
|
$ |
1,641,664 |
|
|
$ |
1,757,093 |
|
$ |
5,104,277 |
|
|
$ |
5,709,868 |
|
Veterans
First originations |
|
318,244 |
|
|
|
405,663 |
|
|
|
395,290 |
|
|
|
580,303 |
|
|
|
594,151 |
|
|
1,699,500 |
|
|
|
2,294,862 |
|
Total originations for sale (A) |
$ |
1,298,871 |
|
|
$ |
1,558,928 |
|
|
$ |
1,724,011 |
|
|
$ |
2,221,967 |
|
|
$ |
2,351,244 |
|
$ |
6,803,777 |
|
|
$ |
8,004,730 |
|
Originations for investment |
|
177,676 |
|
|
|
181,886 |
|
|
|
249,749 |
|
|
|
321,858 |
|
|
|
192,107 |
|
|
931,169 |
|
|
|
396,499 |
|
Total originations |
$ |
1,476,547 |
|
|
$ |
1,740,814 |
|
|
$ |
1,973,760 |
|
|
$ |
2,543,825 |
|
|
$ |
2,543,351 |
|
$ |
7,734,946 |
|
|
$ |
8,401,229 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Retail
originations as percentage of originations for sale |
|
75 |
% |
|
|
74 |
% |
|
|
77 |
% |
|
|
74 |
% |
|
|
75 |
% |
|
75 |
% |
|
|
71 |
% |
Veterans
First originations as a percentage of originations for sale |
|
25 |
|
|
|
26 |
|
|
|
23 |
|
|
|
26 |
|
|
|
25 |
|
|
25 |
|
|
|
29 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Purchases
as a percentage of originations for sale |
|
52 |
% |
|
|
56 |
% |
|
|
53 |
% |
|
|
27 |
% |
|
|
35 |
% |
|
45 |
% |
|
|
35 |
% |
Refinances as a percentage of originations for sale |
|
48 |
|
|
|
44 |
|
|
|
47 |
|
|
|
73 |
|
|
|
65 |
|
|
55 |
|
|
|
65 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Production Margin: |
|
|
|
|
|
|
|
|
|
|
|
|
Production revenue (B) (1) |
$ |
28,182 |
|
|
$ |
39,247 |
|
|
$ |
37,531 |
|
|
$ |
71,282 |
|
|
$ |
70,886 |
|
$ |
176,242 |
|
|
$ |
307,794 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
originations for sale (A) |
$ |
1,298,871 |
|
|
$ |
1,558,928 |
|
|
$ |
1,724,011 |
|
|
$ |
2,221,967 |
|
|
$ |
2,351,244 |
|
$ |
6,803,777 |
|
|
$ |
8,004,730 |
|
Add: Current period end mandatory interest rate lock
commitments to fund originations for sale (2) |
|
353,509 |
|
|
|
510,982 |
|
|
|
605,400 |
|
|
|
798,534 |
|
|
|
1,072,717 |
|
|
353,509 |
|
|
|
1,072,717 |
|
Less: Prior 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 |
|
|
1,072,717 |
|
|
|
372,357 |
|
Total
mortgage production volume (C) |
$ |
1,141,398 |
|
|
$ |
1,464,510 |
|
|
$ |
1,530,877 |
|
|
$ |
1,947,784 |
|
|
$ |
1,879,727 |
|
$ |
6,084,569 |
|
|
$ |
8,705,090 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Production margin (B / C) |
|
2.47 |
% |
|
|
2.68 |
% |
|
|
2.45 |
% |
|
|
3.66 |
% |
|
|
3.77 |
% |
|
2.90 |
% |
|
|
3.54 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
Mortgage Servicing: |
|
|
|
|
|
|
|
|
|
|
|
|
Loans
serviced for others (D) |
$ |
13,126,254 |
|
|
$ |
12,720,126 |
|
|
$ |
12,307,337 |
|
|
$ |
11,530,676 |
|
|
$ |
10,833,135 |
|
|
|
|
MSRs, at
fair value (E) |
|
147,571 |
|
|
|
133,552 |
|
|
|
127,604 |
|
|
|
124,316 |
|
|
|
92,081 |
|
|
|
|
Percentage of MSRs to loans serviced for others (E / D) |
|
1.12 |
% |
|
|
1.05 |
% |
|
|
1.04 |
% |
|
|
1.08 |
% |
|
|
0.85 |
% |
|
|
|
Servicing
income |
$ |
10,766 |
|
|
$ |
10,454 |
|
|
$ |
9,830 |
|
|
$ |
9,636 |
|
|
$ |
9,829 |
|
$ |
40,686 |
|
|
$ |
31,886 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Components of MSR: |
|
|
|
|
|
|
|
|
|
|
|
|
MSR -
current period capitalization |
$ |
15,080 |
|
|
$ |
15,546 |
|
|
$ |
17,512 |
|
|
$ |
24,616 |
|
|
$ |
20,343 |
|
$ |
72,754 |
|
|
$ |
71,077 |
|
MSR -
collection of expected cash flows - paydowns |
|
(1,101 |
) |
|
|
(1,036 |
) |
|
|
(991 |
) |
|
|
(728 |
) |
|
|
(688 |
) |
|
(3,856 |
) |
|
|
(2,244 |
) |
MSR -
collection of expected cash flows - payoffs |
|
(6,385 |
) |
|
|
(7,558 |
) |
|
|
(7,549 |
) |
|
|
(9,440 |
) |
|
|
(8,335 |
) |
|
(30,932 |
) |
|
|
(30,335 |
) |
Valuation: |
|
|
|
|
|
|
|
|
|
|
|
|
MSR - changes in fair value model assumptions |
|
6,656 |
|
|
|
(888 |
) |
|
|
(5,540 |
) |
|
|
18,045 |
|
|
|
(5,223 |
) |
|
18,273 |
|
|
|
(30,764 |
) |
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 |
$ |
6,656 |
|
|
$ |
(888 |
) |
|
$ |
(5,540 |
) |
|
$ |
18,045 |
|
|
$ |
(5,223 |
) |
$ |
18,273 |
|
|
$ |
(26,015 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Summary of Mortgage Banking Revenue: |
|
|
|
|
|
|
|
|
|
|
|
|
Production revenue (1) |
$ |
28,182 |
|
|
$ |
39,247 |
|
|
$ |
37,531 |
|
|
$ |
71,282 |
|
|
$ |
70,886 |
|
$ |
176,242 |
|
|
$ |
307,794 |
|
Servicing
income |
|
10,766 |
|
|
|
10,454 |
|
|
|
9,830 |
|
|
|
9,636 |
|
|
|
9,829 |
|
|
40,686 |
|
|
|
31,886 |
|
MSR
activity |
|
14,250 |
|
|
|
6,064 |
|
|
|
3,432 |
|
|
|
32,493 |
|
|
|
6,097 |
|
|
56,239 |
|
|
|
12,483 |
|
Other |
|
(60 |
) |
|
|
29 |
|
|
|
(209 |
) |
|
|
83 |
|
|
|
7 |
|
|
(157 |
) |
|
|
(6,150 |
) |
Total mortgage banking revenue |
$ |
53,138 |
|
|
$ |
55,794 |
|
|
$ |
50,584 |
|
|
$ |
113,494 |
|
|
$ |
86,819 |
|
$ |
273,010 |
|
|
$ |
346,013 |
|
(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 lo an, 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 |
|
Q4 2021 compared to
Q3 2021 |
|
Q4 2021 compared to
Q4 2020 |
|
Dec 31, |
|
Sep 30, |
|
Jun 30, |
|
Mar 31, |
|
Dec 31, |
|
|
(Dollars in thousands) |
|
2021 |
|
|
|
2021 |
|
|
|
2021 |
|
|
2021 |
|
|
|
2020 |
|
|
$ Change |
|
% Change |
|
$ Change |
|
% Change |
Salaries and employee benefits: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Salaries |
$ |
91,612 |
|
|
$ |
88,161 |
|
|
$ |
91,089 |
|
$ |
91,053 |
|
|
$ |
93,535 |
|
|
$ |
3,451 |
|
|
4 |
% |
|
$ |
(1,923 |
) |
|
(2 |
)% |
Commissions and incentive compensation |
|
49,923 |
|
|
|
57,026 |
|
|
|
53,751 |
|
|
61,367 |
|
|
|
52,383 |
|
|
|
(7,103 |
) |
|
(12 |
) |
|
|
(2,460 |
) |
|
(5 |
) |
Benefits |
|
25,596 |
|
|
|
25,725 |
|
|
|
27,977 |
|
|
28,389 |
|
|
|
25,198 |
|
|
|
(129 |
) |
|
(1 |
) |
|
|
398 |
|
|
2 |
|
Total salaries and employee benefits |
|
167,131 |
|
|
|
170,912 |
|
|
|
172,817 |
|
|
180,809 |
|
|
|
171,116 |
|
|
|
(3,781 |
) |
|
(2 |
) |
|
|
(3,985 |
) |
|
(2 |
) |
Software and equipment |
|
23,708 |
|
|
|
22,029 |
|
|
|
20,866 |
|
|
20,912 |
|
|
|
20,565 |
|
|
|
1,679 |
|
|
8 |
|
|
|
3,143 |
|
|
15 |
|
Operating lease equipment depreciation |
|
10,147 |
|
|
|
10,013 |
|
|
|
9,949 |
|
|
10,771 |
|
|
|
9,938 |
|
|
|
134 |
|
|
1 |
|
|
|
209 |
|
|
2 |
|
Occupancy, net |
|
18,343 |
|
|
|
18,158 |
|
|
|
17,687 |
|
|
19,996 |
|
|
|
19,687 |
|
|
|
185 |
|
|
1 |
|
|
|
(1,344 |
) |
|
(7 |
) |
Data processing |
|
7,207 |
|
|
|
7,104 |
|
|
|
6,920 |
|
|
6,048 |
|
|
|
5,728 |
|
|
|
103 |
|
|
1 |
|
|
|
1,479 |
|
|
26 |
|
Advertising and marketing |
|
13,981 |
|
|
|
13,443 |
|
|
|
11,305 |
|
|
8,546 |
|
|
|
9,850 |
|
|
|
538 |
|
|
4 |
|
|
|
4,131 |
|
|
42 |
|
Professional fees |
|
7,551 |
|
|
|
7,052 |
|
|
|
7,304 |
|
|
7,587 |
|
|
|
6,530 |
|
|
|
499 |
|
|
7 |
|
|
|
1,021 |
|
|
16 |
|
Amortization of other acquisition-related intangible assets |
|
1,811 |
|
|
|
1,877 |
|
|
|
2,039 |
|
|
2,007 |
|
|
|
2,634 |
|
|
|
(66 |
) |
|
(4 |
) |
|
|
(823 |
) |
|
(31 |
) |
FDIC insurance |
|
7,317 |
|
|
|
6,750 |
|
|
|
6,405 |
|
|
6,558 |
|
|
|
7,016 |
|
|
|
567 |
|
|
8 |
|
|
|
301 |
|
|
4 |
|
OREO expense, net |
|
(641 |
) |
|
|
(1,531 |
) |
|
|
769 |
|
|
(251 |
) |
|
|
(114 |
) |
|
|
890 |
|
|
(58 |
) |
|
|
(527 |
) |
|
NM |
|
Other: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commissions - 3rd party brokers |
|
861 |
|
|
|
884 |
|
|
|
889 |
|
|
846 |
|
|
|
764 |
|
|
|
(23 |
) |
|
(3 |
) |
|
|
97 |
|
|
13 |
|
Postage |
|
1,684 |
|
|
|
2,018 |
|
|
|
1,900 |
|
|
1,743 |
|
|
|
1,849 |
|
|
|
(334 |
) |
|
(17 |
) |
|
|
(165 |
) |
|
(9 |
) |
Miscellaneous |
|
24,299 |
|
|
|
23,435 |
|
|
|
21,262 |
|
|
21,317 |
|
|
|
26,304 |
|
|
|
864 |
|
|
4 |
|
|
|
(2,005 |
) |
|
(8 |
) |
Total other |
|
26,844 |
|
|
|
26,337 |
|
|
|
24,051 |
|
|
23,906 |
|
|
|
28,917 |
|
|
|
507 |
|
|
2 |
|
|
|
(2,073 |
) |
|
(7 |
) |
Total Non-Interest Expense |
$ |
283,399 |
|
|
$ |
282,144 |
|
|
$ |
280,112 |
|
$ |
286,889 |
|
|
$ |
281,867 |
|
|
$ |
1,255 |
|
|
0 |
% |
|
$ |
1,532 |
|
|
1 |
% |
NM - Not meaningful.
|
|
Years Ended |
|
|
|
|
|
Dec 31, |
|
Dec 31, |
$ |
|
% |
(Dollars in thousands) |
|
|
2021 |
|
|
|
2020 |
|
Change |
|
Change |
Salaries and employee benefits: |
|
|
|
|
|
|
|
Salaries |
|
$ |
361,915 |
|
|
$ |
351,775 |
|
$ |
10,140 |
|
|
3 |
% |
Commissions and incentive compensation |
|
|
222,067 |
|
|
|
178,584 |
|
|
43,483 |
|
|
24 |
|
Benefits |
|
|
107,687 |
|
|
|
95,717 |
|
|
11,970 |
|
|
13 |
|
Total salaries and employee benefits |
|
|
691,669 |
|
|
|
626,076 |
|
|
65,593 |
|
|
10 |
|
Software and equipment |
|
|
87,515 |
|
|
|
68,496 |
|
|
19,019 |
|
|
28 |
|
Operating lease equipment depreciation |
|
|
40,880 |
|
|
|
37,915 |
|
|
2,965 |
|
|
8 |
|
Occupancy, net |
|
|
74,184 |
|
|
|
69,957 |
|
|
4,227 |
|
|
6 |
|
Data processing |
|
|
27,279 |
|
|
|
30,196 |
|
|
(2,917 |
) |
|
(10 |
) |
Advertising and marketing |
|
|
47,275 |
|
|
|
36,296 |
|
|
10,979 |
|
|
30 |
|
Professional fees |
|
|
29,494 |
|
|
|
27,426 |
|
|
2,068 |
|
|
8 |
|
Amortization of other acquisition-related intangible assets |
|
|
7,734 |
|
|
|
11,018 |
|
|
(3,284 |
) |
|
(30 |
) |
FDIC insurance |
|
|
27,030 |
|
|
|
25,004 |
|
|
2,026 |
|
|
8 |
|
OREO expense, net |
|
|
(1,654 |
) |
|
|
(921 |
) |
|
(733 |
) |
|
(80 |
) |
Other: |
|
|
|
|
|
|
|
Commissions - 3rd party brokers |
|
|
3,480 |
|
|
|
3,114 |
|
|
366 |
|
|
12 |
|
Postage |
|
|
7,345 |
|
|
|
6,918 |
|
|
427 |
|
|
6 |
|
Miscellaneous |
|
|
90,313 |
|
|
|
98,600 |
|
|
(8,287 |
) |
|
(8 |
) |
Total other |
|
|
101,138 |
|
|
|
108,632 |
|
|
(7,494 |
) |
|
(7 |
) |
Total Non-Interest Expense |
|
$ |
1,132,544 |
|
|
$ |
1,040,095 |
|
$ |
92,449 |
|
|
9 |
% |
NM - Not meaningful.
TABLE 18: SUPPLEMENTAL NON-GAAP FINANCIAL
MEASURES/RATIOS
The accounting and reporting policies of
Wintrust conform to generally accepted accounting principles
(“GAAP”) in the United States and prevailing practices in the
banking industry. However, certain non-GAAP performance measures
and ratios are used by management to evaluate and measure the
Company’s performance. These include taxable-equivalent net
interest income (including its individual components),
taxable-equivalent net interest margin (including its individual
components), the taxable-equivalent efficiency ratio, tangible
common equity ratio, tangible book value per common share, return
on average tangible common equity, and pre-tax income, excluding
provision for credit losses. Management believes that these
measures and ratios provide users of the Company’s financial
information a more meaningful view of the performance of the
Company’s interest-earning assets and interest-bearing liabilities
and of the Company’s operating efficiency. Other financial holding
companies may define or calculate these measures and ratios
differently.
Management reviews yields on certain asset
categories and the net interest margin of the Company and its
banking subsidiaries on a fully taxable-equivalent basis. In this
non-GAAP presentation, net interest income is adjusted to reflect
tax-exempt interest income on an equivalent before-tax basis using
tax rates effective as of the end of the period. This measure
ensures comparability of net interest income arising from both
taxable and tax-exempt sources. Net interest income on a fully
taxable-equivalent basis is also used in the calculation of the
Company’s efficiency ratio. The efficiency ratio, which is
calculated by dividing non-interest expense by total
taxable-equivalent net revenue (less securities gains or losses),
measures how much it costs to produce one dollar of revenue.
Securities gains or losses are excluded from this calculation to
better match revenue from daily operations to operational expenses.
Management considers the tangible common equity ratio and tangible
book value per common share as useful measurements of the Company’s
equity. The Company references the return on average tangible
common equity as a measurement of profitability. Management
considers pre-tax income, excluding provision for credit losses, as
a useful measurement of the Company’s core net income.
|
Three Months Ended |
Years Ended |
|
Dec 31, |
|
Sep 30, |
|
Jun 30, |
|
Mar 31, |
|
Dec 31, |
Dec 31, |
|
Dec 31, |
(Dollars and shares in thousands) |
|
2021 |
|
|
|
2021 |
|
|
|
2021 |
|
|
|
2021 |
|
|
|
2020 |
|
|
2021 |
|
|
|
2020 |
|
Reconciliation of Non-GAAP Net Interest Margin and
Efficiency Ratio: |
|
|
|
(A) Interest Income (GAAP) |
$ |
327,979 |
|
|
$ |
322,457 |
|
|
$ |
319,579 |
|
|
$ |
305,469 |
|
|
$ |
307,981 |
|
$ |
1,275,484 |
|
|
$ |
1,293,020 |
|
Taxable-equivalent adjustment: |
|
|
|
|
|
|
|
|
|
|
|
|
- Loans |
|
417 |
|
|
|
411 |
|
|
|
415 |
|
|
|
384 |
|
|
|
324 |
|
|
1,627 |
|
|
|
2,241 |
|
- Liquidity Management Assets |
|
486 |
|
|
|
492 |
|
|
|
494 |
|
|
|
500 |
|
|
|
530 |
|
|
1,972 |
|
|
|
2,165 |
|
- Other Earning Assets |
|
2 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
3 |
|
|
2 |
|
|
|
9 |
|
(B) Interest Income (non-GAAP) |
$ |
328,884 |
|
|
$ |
323,360 |
|
|
$ |
320,488 |
|
|
$ |
306,353 |
|
|
$ |
308,838 |
|
$ |
1,279,085 |
|
|
$ |
1,297,435 |
|
(C) Interest Expense (GAAP) |
|
32,003 |
|
|
|
34,961 |
|
|
|
39,989 |
|
|
|
43,574 |
|
|
|
48,584 |
|
|
150,527 |
|
|
|
253,113 |
|
(D) Net Interest Income (GAAP) (A minus C) |
$ |
295,976 |
|
|
$ |
287,496 |
|
|
$ |
279,590 |
|
|
$ |
261,895 |
|
|
$ |
259,397 |
|
$ |
1,124,957 |
|
|
$ |
1,039,907 |
|
(E) Net Interest Income (non-GAAP) (B minus
C) |
$ |
296,881 |
|
|
$ |
288,399 |
|
|
$ |
280,499 |
|
|
$ |
262,779 |
|
|
$ |
260,254 |
|
$ |
1,128,558 |
|
|
$ |
1,044,322 |
|
Net interest margin (GAAP) |
|
2.54 |
% |
|
|
2.58 |
% |
|
|
2.62 |
% |
|
|
2.53 |
% |
|
|
2.53 |
% |
|
2.57 |
% |
|
|
2.72 |
% |
Net interest margin, fully taxable-equivalent
(non-GAAP) |
|
2.55 |
|
|
|
2.59 |
|
|
|
2.63 |
|
|
|
2.54 |
|
|
|
2.54 |
|
|
2.58 |
|
|
|
2.73 |
|
(F) Non-interest income |
$ |
133,767 |
|
|
$ |
136,474 |
|
|
$ |
129,373 |
|
|
$ |
186,506 |
|
|
$ |
158,361 |
|
$ |
586,120 |
|
|
$ |
604,189 |
|
(G) (Losses) gains on investment securities, net |
|
(1,067 |
) |
|
|
(2,431 |
) |
|
|
1,285 |
|
|
|
1,154 |
|
|
|
1,214 |
|
|
(1,059 |
) |
|
|
(1,926 |
) |
(H) Non-interest expense |
|
283,399 |
|
|
|
282,144 |
|
|
|
280,112 |
|
|
|
286,889 |
|
|
|
281,867 |
|
|
1,132,544 |
|
|
|
1,040,095 |
|
Efficiency ratio (H/(D+F-G)) |
|
65.78 |
% |
|
|
66.17 |
% |
|
|
68.71 |
% |
|
|
64.15 |
% |
|
|
67.67 |
% |
|
66.15 |
% |
|
|
63.19 |
% |
Efficiency ratio (non-GAAP) (H/(E+F-G)) |
|
65.64 |
|
|
|
66.03 |
|
|
|
68.56 |
|
|
|
64.02 |
|
|
|
67.53 |
|
|
66.01 |
|
|
|
63.02 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of Non-GAAP Tangible Common Equity
Ratio: |
|
|
|
Total shareholders’ equity (GAAP) |
$ |
4,498,688 |
|
|
$ |
4,410,317 |
|
|
$ |
4,339,011 |
|
|
$ |
4,252,511 |
|
|
$ |
4,115,995 |
|
|
|
|
Less: Non-convertible preferred stock (GAAP) |
|
(412,500 |
) |
|
|
(412,500 |
) |
|
|
(412,500 |
) |
|
|
(412,500 |
) |
|
|
(412,500 |
) |
|
|
|
Less: Intangible assets (GAAP) |
|
(683,456 |
) |
|
|
(675,910 |
) |
|
|
(678,333 |
) |
|
|
(680,052 |
) |
|
|
(681,747 |
) |
|
|
|
(I) Total tangible common shareholders’ equity (non-GAAP) |
$ |
3,402,732 |
|
|
$ |
3,321,907 |
|
|
$ |
3,248,178 |
|
|
$ |
3,159,959 |
|
|
$ |
3,021,748 |
|
|
|
|
(J) Total assets (GAAP) |
$ |
50,142,143 |
|
|
$ |
47,832,271 |
|
|
$ |
46,738,450 |
|
|
$ |
45,682,202 |
|
|
$ |
45,080,768 |
|
|
|
|
Less: Intangible assets (GAAP) |
|
(683,456 |
) |
|
|
(675,910 |
) |
|
|
(678,333 |
) |
|
|
(680,052 |
) |
|
|
(681,747 |
) |
|
|
|
(K) Total tangible assets (non-GAAP) |
$ |
49,458,687 |
|
|
$ |
47,156,361 |
|
|
$ |
46,060,117 |
|
|
$ |
45,002,150 |
|
|
$ |
44,399,021 |
|
|
|
|
Common equity to assets ratio (GAAP) (L/J) |
|
8.1 |
% |
|
|
8.4 |
% |
|
|
8.4 |
% |
|
|
8.4 |
% |
|
|
8.2 |
% |
|
|
|
Tangible common equity ratio (non-GAAP) (I/K) |
|
6.9 |
|
|
|
7.0 |
|
|
|
7.1 |
|
|
|
7.0 |
|
|
|
6.8 |
|
|
|
|
|
Three Months Ended |
Years Ended |
|
Dec 31, |
|
Sep 30, |
|
Jun 30, |
|
Mar 31, |
|
Dec 31, |
Dec 31, |
|
Dec 31, |
(Dollars and shares in thousands) |
|
2021 |
|
|
|
2021 |
|
|
|
2021 |
|
|
|
2021 |
|
|
|
2020 |
|
|
2021 |
|
|
|
2020 |
|
Reconciliation of Non-GAAP Tangible Book Value per Common
Share: |
|
|
|
Total shareholders’ equity |
$ |
4,498,688 |
|
|
$ |
4,410,317 |
|
|
$ |
4,339,011 |
|
|
$ |
4,252,511 |
|
|
$ |
4,115,995 |
|
|
|
|
Less: Preferred stock |
|
(412,500 |
) |
|
|
(412,500 |
) |
|
|
(412,500 |
) |
|
|
(412,500 |
) |
|
|
(412,500 |
) |
|
|
|
(L) Total common equity |
$ |
4,086,188 |
|
|
$ |
3,997,817 |
|
|
$ |
3,926,511 |
|
|
$ |
3,840,011 |
|
|
$ |
3,703,495 |
|
|
|
|
(M) Actual common shares outstanding |
|
57,054 |
|
|
|
56,956 |
|
|
|
57,067 |
|
|
|
57,023 |
|
|
|
56,770 |
|
|
|
|
Book value per common share (L/M) |
$ |
71.62 |
|
|
$ |
70.19 |
|
|
$ |
68.81 |
|
|
$ |
67.34 |
|
|
$ |
65.24 |
|
|
|
|
Tangible book value per common share (non-GAAP)
(I/M) |
|
59.64 |
|
|
|
58.32 |
|
|
|
56.92 |
|
|
|
55.42 |
|
|
|
53.23 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of Non-GAAP Return on Average Tangible
Common Equity: |
|
|
|
(N) Net income applicable to common shares |
$ |
91,766 |
|
|
$ |
102,146 |
|
|
$ |
98,118 |
|
|
$ |
146,157 |
|
|
$ |
94,213 |
|
$ |
438,187 |
|
|
$ |
271,613 |
|
Add: Intangible asset amortization |
|
1,811 |
|
|
|
1,877 |
|
|
|
2,039 |
|
|
|
2,007 |
|
|
|
2,634 |
|
|
7,734 |
|
|
|
11,018 |
|
Less: Tax effect of intangible asset amortization |
|
(505 |
) |
|
|
(509 |
) |
|
|
(553 |
) |
|
|
(522 |
) |
|
|
(656 |
) |
|
(2,080 |
) |
|
|
(2,732 |
) |
After-tax intangible asset amortization |
$ |
1,306 |
|
|
$ |
1,368 |
|
|
$ |
1,486 |
|
|
$ |
1,485 |
|
|
$ |
1,978 |
|
$ |
5,654 |
|
|
$ |
8,286 |
|
(O) Tangible net income applicable to common shares (non-GAAP) |
$ |
93,072 |
|
|
$ |
103,514 |
|
|
$ |
99,604 |
|
|
$ |
147,642 |
|
|
$ |
96,191 |
|
$ |
443,841 |
|
|
$ |
279,899 |
|
Total average shareholders’ equity |
$ |
4,433,953 |
|
|
$ |
4,343,915 |
|
|
$ |
4,256,778 |
|
|
$ |
4,164,890 |
|
|
$ |
4,050,286 |
|
$ |
4,300,742 |
|
|
$ |
3,926,688 |
|
Less: Average preferred stock |
|
(412,500 |
) |
|
|
(412,500 |
) |
|
|
(412,500 |
) |
|
|
(412,500 |
) |
|
|
(412,500 |
) |
|
(412,500 |
) |
|
|
(306,455 |
) |
(P) Total average common shareholders’ equity |
$ |
4,021,453 |
|
|
$ |
3,931,415 |
|
|
$ |
3,844,278 |
|
|
$ |
3,752,390 |
|
|
$ |
3,637,786 |
|
$ |
3,888,242 |
|
|
$ |
3,620,233 |
|
Less: Average intangible assets |
|
(677,470 |
) |
|
|
(677,201 |
) |
|
|
(679,535 |
) |
|
|
(680,805 |
) |
|
|
(682,290 |
) |
|
(678,739 |
) |
|
|
(686,064 |
) |
(Q) Total average tangible common shareholders’ equity
(non-GAAP) |
$ |
3,343,983 |
|
|
$ |
3,254,214 |
|
|
$ |
3,164,743 |
|
|
$ |
3,071,585 |
|
|
$ |
2,955,496 |
|
$ |
3,209,503 |
|
|
$ |
2,934,169 |
|
Return on average common equity, annualized
(N/P) |
|
9.05 |
% |
|
|
10.31 |
% |
|
|
10.24 |
% |
|
|
15.80 |
% |
|
|
10.30 |
% |
|
11.27 |
% |
|
|
7.50 |
% |
Return on average tangible common equity, annualized
(non-GAAP) (O/Q) |
|
11.04 |
|
|
|
12.62 |
|
|
|
12.62 |
|
|
|
19.49 |
|
|
|
12.95 |
|
|
13.83 |
|
|
|
9.54 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of Non-GAAP Pre-Tax, Pre-Provision
Income: |
|
|
|
|
|
Income before taxes |
$ |
137,045 |
|
|
$ |
149,742 |
|
|
$ |
144,150 |
|
|
$ |
206,859 |
|
|
$ |
134,711 |
|
$ |
637,796 |
|
|
$ |
389,781 |
|
Add: Provision for credit losses |
|
9,299 |
|
|
|
(7,916 |
) |
|
|
(15,299 |
) |
|
|
(45,347 |
) |
|
|
1,180 |
|
|
(59,263 |
) |
|
|
214,220 |
|
Pre-tax income, excluding provision for credit losses
(non-GAAP) |
$ |
146,344 |
|
|
$ |
141,826 |
|
|
$ |
128,851 |
|
|
$ |
161,512 |
|
|
$ |
135,891 |
|
$ |
578,533 |
|
|
$ |
604,001 |
|
|
Dec 31, |
|
Dec 31, |
|
Dec 31, |
|
Dec 31, |
|
Dec 31, |
|
Dec 31, |
|
Dec 31, |
|
Dec 31, |
|
Dec 31, |
|
|
2019 |
|
|
|
2018 |
|
|
|
2017 |
|
|
|
2016 |
|
|
|
2015 |
|
|
|
2014 |
|
|
|
2013 |
|
|
|
2012 |
|
|
|
2011 |
|
Reconciliation of Non-GAAP Tangible Book Value per Common
Share: |
Total shareholders’ equity |
$ |
3,691,250 |
|
|
$ |
3,267,570 |
|
|
$ |
2,976,939 |
|
|
$ |
2,695,617 |
|
|
$ |
2,352,274 |
|
|
$ |
2,069,822 |
|
|
$ |
1,900,589 |
|
|
$ |
1,804,705 |
|
|
$ |
1,543,533 |
|
Less: Non-convertible preferred stock (GAAP) |
|
(125,000 |
) |
|
|
(125,000 |
) |
|
|
(125,000 |
) |
|
|
(251,257 |
) |
|
|
(251,287 |
) |
|
|
(126,467 |
) |
|
|
(126,477 |
) |
|
|
(176,406 |
) |
|
|
(49,768 |
) |
(R) Less: Intangible assets (GAAP) |
|
(692,277 |
) |
|
|
(622,565 |
) |
|
|
(519,505 |
) |
|
|
(520,438 |
) |
|
|
(495,970 |
) |
|
|
(424,445 |
) |
|
|
(393,760 |
) |
|
|
(366,348 |
) |
|
|
(327,538 |
) |
(I) Total tangible common shareholders’ equity (non-GAAP) |
$ |
2,873,973 |
|
|
$ |
2,520,005 |
|
|
$ |
2,332,434 |
|
|
$ |
1,923,922 |
|
|
$ |
1,605,017 |
|
|
$ |
1,518,910 |
|
|
$ |
1,380,352 |
|
|
$ |
1,261,951 |
|
|
$ |
1,166,227 |
|
Actual common shares outstanding |
|
57,822 |
|
|
|
56,408 |
|
|
|
55,965 |
|
|
|
51,881 |
|
|
|
48,383 |
|
|
|
46,805 |
|
|
|
46,117 |
|
|
|
36,858 |
|
|
|
35,978 |
|
Add: TEU conversion shares |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
6,241 |
|
|
|
7,666 |
|
(M) Common shares used for book value calculation |
|
57,822 |
|
|
|
56,408 |
|
|
|
55,965 |
|
|
|
51,881 |
|
|
|
48,383 |
|
|
|
46,805 |
|
|
|
46,117 |
|
|
|
43,099 |
|
|
|
43,644 |
|
Book value per common share ((I-R)/M) |
$ |
61.68 |
|
|
$ |
55.71 |
|
|
$ |
50.96 |
|
|
$ |
47.12 |
|
|
$ |
43.42 |
|
|
$ |
41.52 |
|
|
$ |
38.47 |
|
|
$ |
37.78 |
|
|
$ |
34.23 |
|
Tangible book value per common share (non-GAAP)
(I/M) |
|
49.70 |
|
|
|
44.67 |
|
|
|
41.68 |
|
|
|
37.08 |
|
|
|
33.17 |
|
|
|
32.45 |
|
|
|
29.93 |
|
|
|
29.28 |
|
|
|
26.72 |
|
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, Whitefish Bay 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;
- the interest rate environment,
including a prolonged period of low interest rates or rising
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 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, persistent inflation 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;
- fluctuations in the stock market,
which may have an adverse impact on the Company’s wealth management
business and brokerage operation; and
- widespread outages of operational,
communication, or other systems, whether internal or provided by
third parties, natural or other disasters (including acts of
terrorism and pandemics), and the effects of climate change could
have an adverse effect on the Company’s financial condition and
results of operations, lead to material disruption of the Company’s
operations or the ability or willingness of clients to access the
Company’s products and services.
Therefore, there can be no assurances that
future actual results will correspond to these forward-looking
statements. The reader is cautioned not to place undue reliance on
any forward-looking statement made by the Company. Any such
statement speaks only as of the date the statement was made or as
of such date that may be referenced within the statement. The
Company undertakes no obligation to update any forward-looking
statement to reflect the impact of circumstances or events after
the date of the press release. Persons are advised, however, to
consult further disclosures management makes on related subjects in
its reports filed with the Securities and Exchange Commission and
in its press releases.
CONFERENCE CALL, WEBCAST AND REPLAY
The Company will hold a conference call on
Thursday, January 20, 2022 at 11:00 a.m. (Central Time) regarding
fourth quarter and full year 2021 results. Individuals interested
in listening should call (877) 363-5049 and enter Conference
ID #2759911. A simultaneous audio-only webcast and replay of the
conference call as well as an accompanying slide presentation may
be accessed via the Company’s website at https://www.wintrust.com,
Investor Relations, Investor News and Events,
Presentations & Conference Calls. The text of the fourth
quarter and full year 2021 earnings press release will be available
on the home page of the Company’s website at https://www.wintrust.com and at the Investor
Relations, Investor News and Events, Press Releases link on its
website.
FOR MORE INFORMATION
CONTACT:
Edward J. Wehmer, Founder & Chief Executive Officer
David A. Dykstra, Vice Chairman & Chief Operating
Officer
(847) 939-9000
Web site address: www.wintrust.com
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