ROSEMONT, Ill., July 20, 2022 (GLOBE NEWSWIRE)
-- Wintrust Financial Corporation (“Wintrust”, “the Company”, “we”
or “our”) (Nasdaq: WTFC) announced net income of $94.5 million or
$1.49 per diluted common share for the second quarter of 2022, a
decrease in diluted earnings per common share of 28% compared to
the first quarter of 2022. The Company recorded net income of
$221.9 million or $3.56 per diluted common share for the first six
months of 2022 compared to net income of $258.3 million or $4.24
per diluted common share for the same period of 2021. Pre-tax,
pre-provision income (non-GAAP) for the first six months of 2022
totaled $329.9 million up 14% from $290.4 million in the first six
months of 2021.
Edward J. Wehmer, Founder and Chief Executive
Officer, commented, “I am pleased with the second quarter results
which exhibited strong earnings momentum and core fundamentals. The
second quarter is a turning point for Wintrust as our net interest
income and margin expanded meaningfully and remain poised for
future growth. Additionally, the Company experienced exceptional,
diversified growth in our loan portfolio while maintaining
historically good credit metrics.”
Highlights of the Second Quarter of
2022:
Comparative information to the first quarter of 2022
- Total loans, excluding Paycheck
Protection Program (“PPP”) loans, increased by $1.9 billion, or 22%
on an annualized basis. In addition, total loans as of June 30,
2022 were $1.2 billion higher than average total loans in the
second quarter of 2022 which is expected to benefit future
quarters.
- Core loans increased by $910
million and niche loans increased by $1.0 billion.
- PPP loans declined by $172 million
in the second quarter of 2022 primarily as a result of processing
forgiveness payments.
- Total assets increased by $719
million totaling $51.0 billion as of June 30, 2022 and total
deposits increased by $374 million.
- Net interest income increased by
$38.5 million due to improvement in net interest margin.
- Net interest margin increased by 32
basis points primarily due to increasing loan yields and the
deployment of liquidity to fund loan growth.
- Recorded a provision for credit
losses of $20.4 million in the second quarter of 2022 primarily
related to loan growth and $9.5 million of net charge-offs or 11
basis points on an annualized basis as compared to a provision for
credit losses of $4.1 million in the first quarter of 2022.
- The allowance for credit losses on
our core loan portfolio is approximately 1.31% of the outstanding
balance as of June 30, 2022 unchanged from March 31, 2022. See
Table 12 for more information.
- Non-performing loans remained
historically low but increased to 0.20% of total loans, as of June
30, 2022, up from a record low of 0.16% as of March 31, 2022.
- Mortgage banking revenue decreased
to $33.3 million for the second quarter of 2022 as compared to
$77.2 million in the first quarter of 2022.
- The Company recorded a net benefit
of $445,000 related to essentially offsetting changes in the value
of two mortgage assets in the second quarter of 2022. This
consisted of a $9.1 million increase in the value of mortgage
servicing rights (“MSR”) related to changes in fair value model
assumptions and a negative $8.7 million valuation related
adjustment on the Company’s portfolio of early buy-out exercised
loans guaranteed by U.S. government agencies which are held at fair
value. The change in value recorded in the first quarter of 2022
related to these two mortgage assets was a $43.4 million increase
in value.
- Net losses on investment securities
totaled $7.8 million in the second quarter of 2022 related to
changes in the value of equity securities as compared to net losses
of $2.8 million in the first quarter of 2022.
- Recorded $2.5 million of losses in
other non-interest income related to the sale of a property no
longer considered for future expansion and the anticipated sale of
a former data processing facility.
- Completed a common stock offering
of 3,450,000 shares, generating proceeds, net of estimated issuance
costs, of $285.7 million.
- Tangible book value per common
share (non-GAAP) increased to $59.87 as of June 30, 2022 as
compared to $59.34 as of March 31, 2022. See Table 18 for
reconciliation of non-GAAP measures.
Mr. Wehmer continued, “The Company experienced
robust loan growth as loans, excluding PPP loans, increased by $1.9
billion or 22% on an annualized basis in the second quarter of
2022. We continue to pick up new market share and grow organically
as all of our material loan portfolios exhibited good growth in the
second quarter of 2022. We remain prudent in our review of credit
prospects ensuring our loan growth stays within our conservative
credit standards. The loan growth experienced in the second quarter
of 2022 provides strong momentum for future quarters as total loans
as of June 30, 2022 were $1.2 billion higher than average total
loans in the second quarter of 2022. Our loans to deposits ratio
ended the quarter at 87.0% and we believe that we have sufficient
liquidity to meet customer loan demand.”
Mr. Wehmer commented, “Net interest income
increased by $38.5 million in the second quarter of 2022 primarily
due to improvement in net interest margin. Net interest margin
increased by 32 basis points as the repricing of earning assets has
significantly outpaced deposit rate changes. Additionally, asset
mix improved as excess liquidity was deployed to fund loan growth.
We believe, subject to a material change in the consensus
projection of interest rates as of this release date, that our net
interest margin will continue to expand in the third and fourth
quarters of 2022 and could approach 3.50% by the end of 2022.”
Mr. Wehmer noted, “We recorded mortgage banking
revenue of $33.3 million in the second quarter of 2022 as compared
to $77.2 million in the first quarter of 2022. Loan volumes
originated for sale in the second quarter of 2022 were $821
million, down from $896 million in the first quarter of 2022.
However, production margin increased to 2.21% in the second quarter
of 2022 as compared to 1.67% in the first quarter of 2022. In the
second quarter of 2022, the increase in the value of mortgage
servicing rights related to changes in fair value model assumptions
was essentially offset by valuation related adjustments on the
Company’s portfolio of early buy-out exercised loans guaranteed by
U.S. government agencies which we expect will serve as a partial
economic hedge of the mortgage servicing rights in future periods.
By comparison, there was a $43.4 million benefit recognized in the
first quarter of 2022 related to the change in fair value of
mortgage servicing rights. We are focused on expanding our market
share of purchase originations and finding efficiencies in our
delivery channels to reduce costs in light of current market
conditions. Based on limited inventory and elevated mortgage rates,
we expect that mortgage originations in the third quarter of 2022
will decline relative to the second quarter of 2022. However, the
impact of such decline on earnings is expected to be small relative
to the anticipated growth in net interest income.”
Commenting on credit quality, Mr. Wehmer stated,
"While uncertain economic conditions may persist in the coming
quarters, Wintrust is confident in our ability to navigate such
conditions especially given our current credit quality metrics.
Non-performing loans comprise only 0.20% of total loans, as of June
30, 2022. The Company recorded a provision for credit losses of
$20.4 million in the second quarter of 2022, in part related to
$9.5 million of net charge-offs and strong loan growth recorded in
the quarter. The allowance for credit losses on our core loan
portfolio as of June 30, 2022 is approximately 1.31% of the
outstanding balance. We believe that the Company’s reserves remain
appropriate and we remain diligent in our review of credit.”
Mr. Wehmer concluded, “Our second quarter of
2022 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 second quarter of 2022 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/9f62312c-504c-47a9-9a3b-cf0218d4588c
SUMMARY OF RESULTS:
BALANCE SHEET
Total loans, excluding PPP loans, increased by
$1.9 billion as core loans increased by $910 million and niche
loans increased by $1.0 billion. See Table 1 for more information.
As of June 30, 2022, virtually all of the PPP loan balances were
forgiven with only $82 million remaining on balance sheet.
Total liabilities increased $483 million in the
second quarter of 2022 resulting primarily from a $374 million
increase in total deposits. The increase in deposits was due to a
$267 million increase in interest-bearing deposits and $107 million
increase in non-interest-bearing deposits. The Company's loans to
deposits ratio ended the quarter at 87.0%. 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 second quarter of 2022, net interest
income totaled $337.8 million, an increase of $38.5 million as
compared to the first quarter of 2022. The $38.5 million increase
in net interest income in the second quarter of 2022 compared to
the first quarter of 2022 was primarily due to improvement in net
interest margin. The Company recognized $4.5 million of PPP fee
accretion in the second quarter of 2022 as compared to $6.5 million
in the first quarter of 2022. As of June 30, 2022, the Company had
approximately $2.1 million of net PPP loan fees that have yet to be
recognized in income.
Net interest margin was 2.92% (2.93% on a fully
taxable-equivalent basis, non-GAAP) during the second quarter of
2022 compared to 2.60% (2.61% on a fully taxable-equivalent basis,
non-GAAP) during the first quarter of 2022. The net interest margin
increase as compared to the first quarter of 2022 was due to a 36
basis point increase in yield on earning assets and a three basis
point increase in net free funds contribution. These improvements
were partially offset by a seven basis point increase in the rate
paid on interest-bearing liabilities. The 36 basis point increase
in the yield on earning assets in the second quarter of 2022 as
compared to the first quarter of 2022 was primarily due to a 26
basis point improvement on loan yields and a higher liquidity
management asset yield as the Company earned higher yields on
interest-bearing deposits with banks. The seven basis point
increase in the rate paid on interest-bearing liabilities in the
second quarter of 2022 as compared to the first quarter of 2022 is
primarily due to a six basis point increase in the rate paid on
interest-bearing deposits primarily related to the increasing rate
environment.
Wintrust remains in an asset-sensitive interest
rate position. Based on modeled contractual cash flows, including
prepayment assumptions, approximately 80% of our current loan
balances are projected to reprice or mature in the next 12
months.
For more information regarding net interest
income, see Tables 4 through 8 in this report.
ASSET QUALITY
The allowance for credit losses totaled $312.2
million as of June 30, 2022, an increase of $10.9 million as
compared to $301.3 million as of March 31, 2022. A provision
for credit losses totaling $20.4 million was recorded for the
second quarter of 2022 as compared to $4.1 million recorded in the
first quarter of 2022. 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
June 30, 2022, March 31, 2022, and December 31, 2021
is shown on Table 12 of this report.
Net charge-offs totaled $9.5 million in the
second quarter of 2022, as compared to $2.5 million of net
charge-offs in the first quarter of 2022. Net charge-offs as a
percentage of average total loans were reported as 11 basis points
in the second quarter of 2022 on an annualized basis compared to
three basis points on an annualized basis in the first quarter of
2022. For more information regarding net charge-offs, see Table 10
in this report.
The Company’s delinquency rates remain low and
manageable. 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 June 30, 2022, compared to 0.13% at
March 31, 2022. Non-performing assets totaled $79.2 million at
June 30, 2022, compared to $63.5 million at March 31,
2022. Non-performing loans totaled $72.4 million, or 0.20% of total
loans, at June 30, 2022 compared to $57.3 million, or 0.16% of
total loans, at March 31, 2022. Other real estate owned
(“OREO”) totaled $6.8 million at June 30, 2022, an increase of
$0.6 million compared to $6.2 million at March 31, 2022.
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 remained relatively
unchanged at $31.4 million for both the second quarter of 2022 and
first quarter of 2022. 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 $43.9
million in the second quarter of 2022 as compared to the first
quarter of 2022. The Company recorded a net benefit of $445,000
related to essentially offsetting changes in the value of two
mortgage assets in the second quarter of 2022. This consisted of a
$9.1 million increase in the value of mortgage servicing rights
related to changes in fair value model assumptions and a negative
$8.7 million valuation related adjustment on the Company’s
portfolio of early buy-out exercised loans guaranteed by U.S.
government agencies which are held at fair value. Whereas, the
change in value recorded in the first quarter of 2022 related to
these two mortgage assets was a $43.4 million increase in value.
Production revenue increased by $2.9 million in the second quarter
of 2022 as compared to the first quarter of 2022 as production
margin rebounded, increasing to 2.21% in the second quarter of 2022
as compared to 1.67% in the first quarter of 2022. Loans originated
for sale were $821 million in the second quarter of 2022, a
decrease of $75 million as compared to the first quarter of 2022.
The percentage of origination volume from refinancing activities
was 22% in the second quarter of 2022 as compared to 47% in the
first quarter of 2022. Mortgage banking revenue includes revenue
from activities related to originating, selling and servicing
residential real estate loans for the secondary market.
During the second quarter of 2022, the fair
value of the mortgage servicing rights portfolio increased
primarily due to the capitalization of $11.2 million and fair value
adjustment increase of $9.1 million. These increases were partially
offset by a reduction in value of $6.8 million due to payoffs and
paydowns of the existing portfolio.
The Company recorded $1.1 million of fees from
covered call options in the second quarter of 2022 as compared to
$3.7 million in the first quarter of 2022. The Company has
typically written call options with terms of less than three months
against certain U.S. Treasury and agency securities held in its
portfolio for liquidity and other purposes. Management has entered
into these transactions with the goal of economically hedging
security positions and enhancing its overall return on its
investment portfolio by using fees generated from these options to
compensate for net interest margin compression. These option
transactions are designed to mitigate overall interest rate risk
and do not qualify as hedges pursuant to accounting guidance.
Trading gains totaled $176,000 in the second
quarter of 2022 as compared to a gain of $3.9 million recognized in
the first quarter of 2022. Trading gains in the first quarter of
2022 related primarily to a favorable market value adjustment on an
interest rate cap derivative which was held as an economic hedge
for potentially rising interest rates.
The Company recognized net losses on investment
securities of $7.8 million in the second quarter of 2022 as
compared to net losses of $2.8 million recognized in the first
quarter of 2022.
Other non-interest income decreased $4.6 million
in the second quarter of 2022 as compared to the first quarter of
2022 primarily due to $2.5 million of losses relating to the sale
of a property no longer considered for future expansion and the
anticipated sale of a former data processing facility. Other
declines in the second quarter of 2022 as compared to the first
quarter of 2022 include lower interest rate swap fees, market
losses on BOLI investments related to non-qualified deferred
compensation accounts recorded in BOLI income and less partnership
investment income.
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 $5.0 million in the second quarter of 2022 as compared to the
first quarter of 2022. The $5.0 million decrease is primarily
related to decreased incentive compensation expense.
Advertising and marketing expenses in the second
quarter of 2022 increased by $4.7 million as compared to the first
quarter of 2022 primarily related to seasonal media advertising and
sponsorship costs. Marketing costs are incurred to promote the
Company's brand, commercial banking capabilities and the Company's
various products, to attract loans and deposits and to announce new
branch openings as well as the expansion of the Company's non-bank
businesses. The level of marketing expenditures depends on the
timing of sponsorship programs utilized which are determined based
on the market area, targeted audience, competition and various
other factors.
Miscellaneous expense in the second quarter of
2022 increased by $5.2 million as compared to the first quarter of
2022. Miscellaneous expense includes ATM expenses, correspondent
bank charges, directors fees, telephone, postage, corporate
insurance, dues and subscriptions, problem loan expenses and other
miscellaneous operational losses and costs.
For more information regarding non-interest
expense, see Table 17 in this report.
INCOME TAXES
The Company recorded income tax expense of $37.1
million in the second quarter of 2022 compared to $46.3 million in
the first quarter of 2022. The effective tax rates were 28.21% in
the second quarter of 2022 compared to 26.65% in the first quarter
of 2022. The effective tax rates were partially impacted by tax
effects related to share-based compensation, which fluctuate based
on the Company’s stock price and timing of employee stock option
exercises and vesting of other share-based awards. The Company
recorded excess tax benefits of $81,000 in the second quarter of
2022, compared to excess tax benefits of $2.2 million in the first
quarter of 2022 related to share-based compensation.
BUSINESS UNIT SUMMARY
Community Banking
Through its community banking unit, the Company
provides banking and financial services primarily to individuals,
small to mid-sized businesses, local governmental units and
institutional clients residing primarily in the local areas the
Company services. In the second quarter of 2022, this unit expanded
its loan portfolio. The segment’s net interest income increased in
the second quarter of 2022 as compared to the first quarter of 2022
due to loan growth and an increased net interest margin.
Mortgage banking revenue was $33.3 million for
the second quarter of 2022, a decrease of $43.9 million as compared
to the first quarter of 2022. Service charges on deposit accounts
totaled $15.9 million in the second quarter of 2022, an increase of
$605,000 as compared to the first quarter of 2022 primarily due to
higher fees associated with commercial account activity. The
Company’s gross commercial and commercial real estate loan
pipelines remained robust as of June 30, 2022 indicating
momentum for continued loan growth in the third quarter of
2022.
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 $3.9 billion during
the second quarter of 2022 and average balances increased by $531.9
million as compared to the first quarter of 2022. The Company’s
leasing portfolio balance increased in the second quarter of 2022,
with its portfolio of assets, including capital leases, loans and
equipment on operating leases, totaling $2.6 billion as of
June 30, 2022 as compared to $2.4 billion as of March 31,
2022. Revenues from the Company’s out-sourced administrative
services business were $1.6 million in the second quarter of 2022,
a decrease of $262,000 from the first quarter of 2022.
Wealth Management
Through four separate subsidiaries within its
wealth management unit, the Company offers a full range of wealth
management services, including trust and investment services,
tax-deferred like-kind exchange services, asset management,
securities brokerage services and 401(k) and retirement plan
services. Wealth management revenue totaled $31.4 million in the
second quarter of 2022, relatively unchanged compared to the first
quarter of 2022. At June 30, 2022, the Company’s wealth
management subsidiaries had approximately $32.9 billion of assets
under administration, which included $6.8 billion of assets owned
by the Company and its subsidiary banks, representing a $2.9
billion decrease from the $35.8 billion of assets under
administration at March 31, 2022. The decrease in assets under
administration experienced in the second quarter of 2022 as
compared to the first quarter of 2022 is primarily due to reduced
equity and fixed income asset values.
ITEMS IMPACTING COMPARATIVE FINANCIAL
RESULTS
Common Stock Offering
In June 2022, the Company sold through a public
offering a total of 3,450,000 shares of its common stock. Net
proceeds to the Company totaled approximately $285.7 million, net
of estimated issuance costs.
Insurance Agency Loan Portfolio
On November 15, 2021, the Company completed its
acquisition of certain assets from The Allstate Corporation
(“Allstate”). Through this business combination, the Company
acquired approximately $581.6 million of loans, net of allowance
for credit losses measured on the acquisition date. 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 second quarter of 2022, as compared to the first
quarter of 2022 (sequential quarter) and second quarter of 2021
(linked quarter), are shown in the table below:
|
|
|
|
|
|
|
% or(1)
basis point (bp) change from
1st Quarter
2022 |
|
% or
basis point (bp) change from
2nd Quarter
2021 |
|
|
Three Months Ended |
|
(Dollars in thousands, except per share data) |
|
Jun 30, 2022 |
|
Mar 31, 2022 |
|
Jun 30, 2021 |
|
Net income |
|
$ |
94,513 |
|
|
$ |
127,391 |
|
|
$ |
105,109 |
|
(26 |
) |
% |
|
(10 |
) |
% |
Pre-tax
income, excluding provision for credit losses
(non-GAAP)(2) |
|
|
152,078 |
|
|
|
177,786 |
|
|
|
128,851 |
|
(14 |
) |
|
|
18 |
|
|
Net
income per common share – diluted |
|
|
1.49 |
|
|
|
2.07 |
|
|
|
1.70 |
|
(28 |
) |
|
|
(12 |
) |
|
Cash
dividends declared per common share |
|
|
0.34 |
|
|
|
0.34 |
|
|
|
0.31 |
|
— |
|
|
|
10 |
|
|
Net
revenue(3) |
|
|
440,746 |
|
|
|
462,084 |
|
|
|
408,963 |
|
(5 |
) |
|
|
8 |
|
|
Net
interest income |
|
|
337,804 |
|
|
|
299,294 |
|
|
|
279,590 |
|
13 |
|
|
|
21 |
|
|
Net
interest margin |
|
|
2.92 |
% |
|
|
2.60 |
% |
|
|
2.62 |
% |
32 |
|
bps |
|
30 |
|
bps |
Net
interest margin – fully taxable-equivalent
(non-GAAP)(2) |
|
|
2.93 |
|
|
|
2.61 |
|
|
|
2.63 |
|
32 |
|
|
|
30 |
|
|
Net
overhead ratio(4) |
|
|
1.51 |
|
|
|
1.00 |
|
|
|
1.32 |
|
51 |
|
|
|
19 |
|
|
Return on
average assets |
|
|
0.77 |
|
|
|
1.04 |
|
|
|
0.92 |
|
(27 |
) |
|
|
(15 |
) |
|
Return on
average common equity |
|
|
8.53 |
|
|
|
11.94 |
|
|
|
10.24 |
|
(341 |
) |
|
|
(171 |
) |
|
Return on average tangible common equity
(non-GAAP)(2) |
|
|
10.36 |
|
|
|
14.48 |
|
|
|
12.62 |
|
(412 |
) |
|
|
(226 |
) |
|
At end of period |
|
|
|
|
|
|
|
|
|
|
|
Total
assets |
|
$ |
50,969,332 |
|
|
$ |
50,250,661 |
|
|
$ |
46,738,450 |
|
6 |
|
% |
|
9 |
|
% |
Total
loans(5) |
|
|
37,053,103 |
|
|
|
35,280,547 |
|
|
|
32,911,187 |
|
20 |
|
|
|
13 |
|
|
Total
deposits |
|
|
42,593,326 |
|
|
|
42,219,322 |
|
|
|
38,804,616 |
|
4 |
|
|
|
10 |
|
|
Total shareholders’ equity |
|
|
4,727,623 |
|
|
|
4,492,256 |
|
|
|
4,339,011 |
|
21 |
|
|
|
9 |
|
|
(1) |
Period-end balance sheet percentage changes are
annualized. |
(2) |
See “Supplemental Non-GAAP Financial Measures/Ratios” at Table
18 for additional information on this performance
measure/ratio. |
(3) |
Net revenue is net interest income plus non-interest
income. |
(4) |
The net overhead ratio is calculated by netting total
non-interest expense and total non-interest income, annualizing
this amount, and dividing by that period’s average total assets. A
lower ratio indicates a higher degree of efficiency. |
(5) |
Excludes mortgage loans held-for-sale. |
Certain returns, yields, performance ratios, or
quarterly growth rates are “annualized” in this presentation to
represent an annual time period. This is done for analytical
purposes to better discern, for decision-making purposes,
underlying performance trends when compared to full-year or
year-over-year amounts. For example, a 5% growth rate for a quarter
would represent an annualized 20% growth rate. Additional
supplemental financial information showing quarterly trends can be
found on the Company’s website at www.wintrust.com by
choosing “Financial Reports” under the “Investor Relations”
heading, and then choosing “Financial Highlights.”
WINTRUST FINANCIAL CORPORATION
Selected Financial Highlights
|
|
Three Months Ended |
Six Months Ended |
(Dollars in thousands, except per share data) |
|
Jun 30, 2022 |
|
Mar 31, 2022 |
|
Dec 31, 2021 |
|
Sep 30, 2021 |
|
Jun 30, 2021 |
Jun 30, 2022 |
|
Jun 30, 2021 |
Selected Financial Condition Data (at end of
period): |
|
|
|
Total
assets |
|
$ |
50,969,332 |
|
|
$ |
50,250,661 |
|
|
$ |
50,142,143 |
|
|
$ |
47,832,271 |
|
|
$ |
46,738,450 |
|
|
|
|
Total
loans(1) |
|
|
37,053,103 |
|
|
|
35,280,547 |
|
|
|
34,789,104 |
|
|
|
33,264,043 |
|
|
|
32,911,187 |
|
|
|
|
Total
deposits |
|
|
42,593,326 |
|
|
|
42,219,322 |
|
|
|
42,095,585 |
|
|
|
39,952,558 |
|
|
|
38,804,616 |
|
|
|
|
Total shareholders’ equity |
|
|
4,727,623 |
|
|
|
4,492,256 |
|
|
|
4,498,688 |
|
|
|
4,410,317 |
|
|
|
4,339,011 |
|
|
|
|
Selected Statements of Income Data: |
|
|
|
Net interest income |
|
$ |
337,804 |
|
|
$ |
299,294 |
|
|
$ |
295,976 |
|
|
$ |
287,496 |
|
|
$ |
279,590 |
|
$ |
637,098 |
|
|
$ |
541,485 |
|
Net
revenue(2) |
|
|
440,746 |
|
|
|
462,084 |
|
|
|
429,743 |
|
|
|
423,970 |
|
|
|
408,963 |
|
|
902,830 |
|
|
|
857,364 |
|
Net
income |
|
|
94,513 |
|
|
|
127,391 |
|
|
|
98,757 |
|
|
|
109,137 |
|
|
|
105,109 |
|
|
221,904 |
|
|
|
258,257 |
|
Pre-tax
income, excluding provision for credit losses
(non-GAAP)(3) |
|
|
152,078 |
|
|
|
177,786 |
|
|
|
146,344 |
|
|
|
141,826 |
|
|
|
128,851 |
|
|
329,864 |
|
|
|
290,363 |
|
Net
income per common share – Basic |
|
|
1.51 |
|
|
|
2.11 |
|
|
|
1.61 |
|
|
|
1.79 |
|
|
|
1.72 |
|
|
3.61 |
|
|
|
4.29 |
|
Net
income per common share – Diluted |
|
|
1.49 |
|
|
|
2.07 |
|
|
|
1.58 |
|
|
|
1.77 |
|
|
|
1.70 |
|
|
3.56 |
|
|
|
4.24 |
|
Cash dividends declared per common share |
|
|
0.34 |
|
|
|
0.34 |
|
|
|
0.31 |
|
|
|
0.31 |
|
|
|
0.31 |
|
|
0.68 |
|
|
|
0.62 |
|
Selected Financial Ratios and Other Data: |
|
|
|
Performance Ratios: |
|
|
|
Net
interest margin |
|
|
2.92 |
% |
|
|
2.60 |
% |
|
|
2.54 |
% |
|
|
2.58 |
% |
|
|
2.62 |
% |
|
2.76 |
% |
|
|
2.58 |
% |
Net
interest margin – fully taxable-equivalent
(non-GAAP)(3) |
|
|
2.93 |
|
|
|
2.61 |
|
|
|
2.55 |
|
|
|
2.59 |
|
|
|
2.63 |
|
|
2.77 |
|
|
|
2.59 |
|
Non-interest income to average assets |
|
|
0.84 |
|
|
|
1.33 |
|
|
|
1.08 |
|
|
|
1.15 |
|
|
|
1.13 |
|
|
1.08 |
|
|
|
1.40 |
|
Non-interest expense to average assets |
|
|
2.35 |
|
|
|
2.33 |
|
|
|
2.29 |
|
|
|
2.37 |
|
|
|
2.45 |
|
|
2.34 |
|
|
|
2.51 |
|
Net
overhead ratio(4) |
|
|
1.51 |
|
|
|
1.00 |
|
|
|
1.21 |
|
|
|
1.22 |
|
|
|
1.32 |
|
|
1.25 |
|
|
|
1.11 |
|
Return on
average assets |
|
|
0.77 |
|
|
|
1.04 |
|
|
|
0.80 |
|
|
|
0.92 |
|
|
|
0.92 |
|
|
0.91 |
|
|
|
1.15 |
|
Return on
average common equity |
|
|
8.53 |
|
|
|
11.94 |
|
|
|
9.05 |
|
|
|
10.31 |
|
|
|
10.24 |
|
|
10.22 |
|
|
|
12.97 |
|
Return on
average tangible common equity (non-GAAP)(3) |
|
|
10.36 |
|
|
|
14.48 |
|
|
|
11.04 |
|
|
|
12.62 |
|
|
|
12.62 |
|
|
12.40 |
|
|
|
15.99 |
|
Average
total assets |
|
$ |
49,353,426 |
|
|
$ |
49,501,844 |
|
|
$ |
49,118,777 |
|
|
$ |
47,192,510 |
|
|
$ |
45,946,751 |
|
$ |
49,427,225 |
|
|
$ |
45,470,389 |
|
Average
total shareholders’ equity |
|
|
4,526,110 |
|
|
|
4,500,460 |
|
|
|
4,433,953 |
|
|
|
4,343,915 |
|
|
|
4,256,778 |
|
|
4,513,356 |
|
|
|
4,211,088 |
|
Average
loans to average deposits ratio |
|
|
86.8 |
% |
|
|
83.8 |
% |
|
|
81.7 |
% |
|
|
83.8 |
% |
|
|
86.7 |
% |
|
85.3 |
% |
|
|
86.9 |
% |
Period-end loans to deposits ratio |
|
|
87.0 |
|
|
|
83.6 |
|
|
|
82.6 |
|
|
|
83.3 |
|
|
|
84.8 |
|
|
|
|
Common Share Data at end of period: |
|
|
|
Market
price per common share |
|
$ |
80.15 |
|
|
$ |
92.93 |
|
|
$ |
90.82 |
|
|
$ |
80.37 |
|
|
$ |
75.63 |
|
|
|
|
Book
value per common share |
|
|
71.06 |
|
|
|
71.26 |
|
|
|
71.62 |
|
|
|
70.19 |
|
|
|
68.81 |
|
|
|
|
Tangible
book value per common share (non-GAAP)(3) |
|
|
59.87 |
|
|
|
59.34 |
|
|
|
59.64 |
|
|
|
58.32 |
|
|
|
56.92 |
|
|
|
|
Common shares outstanding |
|
|
60,721,889 |
|
|
|
57,253,214 |
|
|
|
57,054,091 |
|
|
|
56,956,026 |
|
|
|
57,066,677 |
|
|
|
|
Other
Data at end of period: |
|
|
|
Tier 1
leverage ratio(5) |
|
|
8.8 |
% |
|
|
8.1 |
% |
|
|
8.0 |
% |
|
|
8.1 |
% |
|
|
8.2 |
% |
|
|
|
Risk-based capital ratios: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Tier 1
capital ratio(5) |
|
|
9.9 |
|
|
|
9.6 |
|
|
|
9.6 |
|
|
|
9.9 |
|
|
|
10.1 |
|
|
|
|
Common
equity tier 1 capital ratio(5) |
|
|
9.0 |
|
|
|
8.6 |
|
|
|
8.6 |
|
|
|
8.9 |
|
|
|
9.0 |
|
|
|
|
Total
capital ratio(5) |
|
|
11.8 |
|
|
|
11.6 |
|
|
|
11.6 |
|
|
|
12.1 |
|
|
|
12.4 |
|
|
|
|
Allowance
for credit losses(6) |
|
$ |
312,192 |
|
|
$ |
301,327 |
|
|
$ |
299,731 |
|
|
$ |
296,138 |
|
|
$ |
304,121 |
|
|
|
|
Allowance
for loan and unfunded lending-related commitment losses to total
loans |
|
|
0.84 |
% |
|
|
0.85 |
% |
|
|
0.86 |
% |
|
|
0.89 |
% |
|
|
0.92 |
% |
|
|
|
Number
of: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Bank subsidiaries |
|
|
15 |
|
|
|
15 |
|
|
|
15 |
|
|
|
15 |
|
|
|
15 |
|
|
|
|
Banking offices |
|
|
173 |
|
|
|
174 |
|
|
|
173 |
|
|
|
172 |
|
|
|
172 |
|
|
|
|
(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) |
|
Jun 30, |
|
Mar 31, |
|
Dec 31, |
|
Sep 30, |
|
Jun 30, |
(In thousands) |
|
2022 |
|
|
|
2022 |
|
|
|
2021 |
|
|
|
2021 |
|
|
|
2021 |
|
Assets |
|
|
|
|
|
|
|
|
|
Cash and
due from banks |
$ |
498,891 |
|
|
$ |
462,516 |
|
|
$ |
411,150 |
|
|
$ |
462,244 |
|
|
$ |
434,957 |
|
Federal
funds sold and securities purchased under resale agreements |
|
475,056 |
|
|
|
700,056 |
|
|
|
700,055 |
|
|
|
55 |
|
|
|
52 |
|
Interest-bearing deposits with banks |
|
3,266,541 |
|
|
|
4,013,597 |
|
|
|
5,372,603 |
|
|
|
5,232,315 |
|
|
|
4,707,415 |
|
Available-for-sale securities, at fair value |
|
2,970,121 |
|
|
|
2,998,898 |
|
|
|
2,327,793 |
|
|
|
2,373,478 |
|
|
|
2,188,608 |
|
Held-to-maturity securities, at amortized cost |
|
3,413,469 |
|
|
|
3,435,729 |
|
|
|
2,942,285 |
|
|
|
2,736,722 |
|
|
|
2,498,232 |
|
Trading
account securities |
|
1,010 |
|
|
|
852 |
|
|
|
1,061 |
|
|
|
1,103 |
|
|
|
2,667 |
|
Equity
securities with readily determinable fair value |
|
93,295 |
|
|
|
92,689 |
|
|
|
90,511 |
|
|
|
88,193 |
|
|
|
86,316 |
|
Federal
Home Loan Bank and Federal Reserve Bank stock |
|
136,138 |
|
|
|
136,163 |
|
|
|
135,378 |
|
|
|
135,408 |
|
|
|
136,625 |
|
Brokerage
customer receivables |
|
21,527 |
|
|
|
22,888 |
|
|
|
26,068 |
|
|
|
26,378 |
|
|
|
23,093 |
|
Mortgage
loans held-for-sale |
|
513,232 |
|
|
|
606,545 |
|
|
|
817,912 |
|
|
|
925,312 |
|
|
|
984,994 |
|
Loans,
net of unearned income |
|
37,053,103 |
|
|
|
35,280,547 |
|
|
|
34,789,104 |
|
|
|
33,264,043 |
|
|
|
32,911,187 |
|
Allowance
for loan losses |
|
(251,769 |
) |
|
|
(250,539 |
) |
|
|
(247,835 |
) |
|
|
(248,612 |
) |
|
|
(261,089 |
) |
Net loans |
|
36,801,334 |
|
|
|
35,030,008 |
|
|
|
34,541,269 |
|
|
|
33,015,431 |
|
|
|
32,650,098 |
|
Premises,
software and equipment, net |
|
762,381 |
|
|
|
761,213 |
|
|
|
766,405 |
|
|
|
748,872 |
|
|
|
752,375 |
|
Lease
investments, net |
|
223,813 |
|
|
|
240,656 |
|
|
|
242,082 |
|
|
|
243,933 |
|
|
|
219,023 |
|
Accrued
interest receivable and other assets |
|
1,112,697 |
|
|
|
1,066,750 |
|
|
|
1,084,115 |
|
|
|
1,166,917 |
|
|
|
1,185,811 |
|
Trade
date securities receivable |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
189,851 |
|
Goodwill |
|
654,709 |
|
|
|
655,402 |
|
|
|
655,149 |
|
|
|
645,792 |
|
|
|
646,336 |
|
Other
acquisition-related intangible assets |
|
25,118 |
|
|
|
26,699 |
|
|
|
28,307 |
|
|
|
30,118 |
|
|
|
31,997 |
|
Total assets |
$ |
50,969,332 |
|
|
$ |
50,250,661 |
|
|
$ |
50,142,143 |
|
|
$ |
47,832,271 |
|
|
$ |
46,738,450 |
|
Liabilities and Shareholders’ Equity |
|
|
|
|
|
|
|
|
|
Deposits: |
|
|
|
|
|
|
|
|
|
Non-interest-bearing |
$ |
13,855,844 |
|
|
$ |
13,748,918 |
|
|
$ |
14,179,980 |
|
|
$ |
13,255,417 |
|
|
$ |
12,796,110 |
|
Interest-bearing |
|
28,737,482 |
|
|
|
28,470,404 |
|
|
|
27,915,605 |
|
|
|
26,697,141 |
|
|
|
26,008,506 |
|
Total deposits |
|
42,593,326 |
|
|
|
42,219,322 |
|
|
|
42,095,585 |
|
|
|
39,952,558 |
|
|
|
38,804,616 |
|
Federal
Home Loan Bank advances |
|
1,166,071 |
|
|
|
1,241,071 |
|
|
|
1,241,071 |
|
|
|
1,241,071 |
|
|
|
1,241,071 |
|
Other
borrowings |
|
482,787 |
|
|
|
482,516 |
|
|
|
494,136 |
|
|
|
504,527 |
|
|
|
518,493 |
|
Subordinated notes |
|
437,162 |
|
|
|
437,033 |
|
|
|
436,938 |
|
|
|
436,811 |
|
|
|
436,719 |
|
Junior
subordinated debentures |
|
253,566 |
|
|
|
253,566 |
|
|
|
253,566 |
|
|
|
253,566 |
|
|
|
253,566 |
|
Trade
date securities payable |
|
— |
|
|
|
437 |
|
|
|
— |
|
|
|
1,348 |
|
|
|
— |
|
Accrued
interest payable and other liabilities |
|
1,308,797 |
|
|
|
1,124,460 |
|
|
|
1,122,159 |
|
|
|
1,032,073 |
|
|
|
1,144,974 |
|
Total liabilities |
|
46,241,709 |
|
|
|
45,758,405 |
|
|
|
45,643,455 |
|
|
|
43,421,954 |
|
|
|
42,399,439 |
|
Shareholders’ Equity: |
|
|
|
|
|
|
|
|
|
Preferred stock |
|
412,500 |
|
|
|
412,500 |
|
|
|
412,500 |
|
|
|
412,500 |
|
|
|
412,500 |
|
Common stock |
|
60,722 |
|
|
|
59,091 |
|
|
|
58,892 |
|
|
|
58,794 |
|
|
|
58,770 |
|
Surplus |
|
1,880,913 |
|
|
|
1,698,093 |
|
|
|
1,685,572 |
|
|
|
1,674,062 |
|
|
|
1,669,002 |
|
Treasury stock |
|
— |
|
|
|
(109,903 |
) |
|
|
(109,903 |
) |
|
|
(109,903 |
) |
|
|
(100,363 |
) |
Retained earnings |
|
2,616,525 |
|
|
|
2,548,474 |
|
|
|
2,447,535 |
|
|
|
2,373,447 |
|
|
|
2,288,969 |
|
Accumulated other comprehensive (loss) income |
|
(243,037 |
) |
|
|
(115,999 |
) |
|
|
4,092 |
|
|
|
1,417 |
|
|
|
10,133 |
|
Total shareholders’ equity |
|
4,727,623 |
|
|
|
4,492,256 |
|
|
|
4,498,688 |
|
|
|
4,410,317 |
|
|
|
4,339,011 |
|
Total liabilities and shareholders’ equity |
$ |
50,969,332 |
|
|
$ |
50,250,661 |
|
|
$ |
50,142,143 |
|
|
$ |
47,832,271 |
|
|
$ |
46,738,450 |
|
WINTRUST FINANCIAL CORPORATION AND
SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED)
|
Three Months Ended |
Six Months Ended |
(In
thousands, except per share data) |
Jun 30,
2022 |
|
Mar 31,
2022 |
|
Dec 31,
2021 |
|
Sep 30,
2021 |
|
Jun 30,
2021 |
Jun 30, 2022 |
|
Jun 30, 2021 |
Interest income |
|
|
|
|
|
|
|
|
|
|
|
|
Interest and fees on loans |
$ |
320,501 |
|
|
$ |
285,698 |
|
|
$ |
289,140 |
|
|
$ |
285,587 |
|
|
$ |
284,701 |
|
$ |
606,199 |
|
|
$ |
558,801 |
|
Mortgage loans held-for-sale |
|
5,740 |
|
|
|
6,087 |
|
|
|
7,234 |
|
|
|
7,716 |
|
|
|
8,183 |
|
|
11,827 |
|
|
|
17,219 |
|
Interest-bearing deposits with banks |
|
5,790 |
|
|
|
1,687 |
|
|
|
2,254 |
|
|
|
2,000 |
|
|
|
1,153 |
|
|
7,477 |
|
|
|
2,352 |
|
Federal funds sold and securities purchased under resale
agreements |
|
1,364 |
|
|
|
431 |
|
|
|
173 |
|
|
|
— |
|
|
|
— |
|
|
1,795 |
|
|
|
— |
|
Investment securities |
|
36,541 |
|
|
|
32,398 |
|
|
|
27,210 |
|
|
|
25,189 |
|
|
|
23,623 |
|
|
68,939 |
|
|
|
42,887 |
|
Trading account securities |
|
4 |
|
|
|
5 |
|
|
|
4 |
|
|
|
3 |
|
|
|
1 |
|
|
9 |
|
|
|
3 |
|
Federal Home Loan Bank and Federal Reserve Bank stock |
|
1,823 |
|
|
|
1,772 |
|
|
|
1,776 |
|
|
|
1,777 |
|
|
|
1,769 |
|
|
3,595 |
|
|
|
3,514 |
|
Brokerage customer receivables |
|
205 |
|
|
|
174 |
|
|
|
188 |
|
|
|
185 |
|
|
|
149 |
|
|
379 |
|
|
|
272 |
|
Total interest income |
|
371,968 |
|
|
|
328,252 |
|
|
|
327,979 |
|
|
|
322,457 |
|
|
|
319,579 |
|
|
700,220 |
|
|
|
625,048 |
|
Interest expense |
|
|
|
|
|
|
|
|
|
|
|
|
Interest on deposits |
|
18,985 |
|
|
|
14,854 |
|
|
|
16,572 |
|
|
|
19,305 |
|
|
|
24,298 |
|
|
33,839 |
|
|
|
52,242 |
|
Interest on Federal Home Loan Bank advances |
|
4,878 |
|
|
|
4,816 |
|
|
|
4,923 |
|
|
|
4,931 |
|
|
|
4,887 |
|
|
9,694 |
|
|
|
9,727 |
|
Interest on other borrowings |
|
2,734 |
|
|
|
2,239 |
|
|
|
2,250 |
|
|
|
2,501 |
|
|
|
2,568 |
|
|
4,973 |
|
|
|
5,177 |
|
Interest on subordinated notes |
|
5,517 |
|
|
|
5,482 |
|
|
|
5,514 |
|
|
|
5,480 |
|
|
|
5,512 |
|
|
10,999 |
|
|
|
10,989 |
|
Interest on junior subordinated debentures |
|
2,050 |
|
|
|
1,567 |
|
|
|
2,744 |
|
|
|
2,744 |
|
|
|
2,724 |
|
|
3,617 |
|
|
|
5,428 |
|
Total interest expense |
|
34,164 |
|
|
|
28,958 |
|
|
|
32,003 |
|
|
|
34,961 |
|
|
|
39,989 |
|
|
63,122 |
|
|
|
83,563 |
|
Net interest income |
|
337,804 |
|
|
|
299,294 |
|
|
|
295,976 |
|
|
|
287,496 |
|
|
|
279,590 |
|
|
637,098 |
|
|
|
541,485 |
|
Provision for credit losses |
|
20,417 |
|
|
|
4,106 |
|
|
|
9,299 |
|
|
|
(7,916 |
) |
|
|
(15,299 |
) |
|
24,523 |
|
|
|
(60,646 |
) |
Net interest income after provision for credit losses |
|
317,387 |
|
|
|
295,188 |
|
|
|
286,677 |
|
|
|
295,412 |
|
|
|
294,889 |
|
|
612,575 |
|
|
|
602,131 |
|
Non-interest income |
|
|
|
|
|
|
|
|
|
|
|
|
Wealth management |
|
31,369 |
|
|
|
31,394 |
|
|
|
32,489 |
|
|
|
31,531 |
|
|
|
30,690 |
|
|
62,763 |
|
|
|
59,999 |
|
Mortgage banking |
|
33,314 |
|
|
|
77,231 |
|
|
|
53,138 |
|
|
|
55,794 |
|
|
|
50,584 |
|
|
110,545 |
|
|
|
164,078 |
|
Service charges on deposit accounts |
|
15,888 |
|
|
|
15,283 |
|
|
|
14,734 |
|
|
|
14,149 |
|
|
|
13,249 |
|
|
31,171 |
|
|
|
25,285 |
|
(Losses) gains on investment securities, net |
|
(7,797 |
) |
|
|
(2,782 |
) |
|
|
(1,067 |
) |
|
|
(2,431 |
) |
|
|
1,285 |
|
|
(10,579 |
) |
|
|
2,439 |
|
Fees from covered call options |
|
1,069 |
|
|
|
3,742 |
|
|
|
1,128 |
|
|
|
1,157 |
|
|
|
1,388 |
|
|
4,811 |
|
|
|
1,388 |
|
Trading gains (losses), net |
|
176 |
|
|
|
3,889 |
|
|
|
206 |
|
|
|
58 |
|
|
|
(438 |
) |
|
4,065 |
|
|
|
(19 |
) |
Operating lease income, net |
|
15,007 |
|
|
|
15,475 |
|
|
|
14,204 |
|
|
|
12,807 |
|
|
|
12,240 |
|
|
30,482 |
|
|
|
26,680 |
|
Other |
|
13,916 |
|
|
|
18,558 |
|
|
|
18,935 |
|
|
|
23,409 |
|
|
|
20,375 |
|
|
32,474 |
|
|
|
36,029 |
|
Total non-interest income |
|
102,942 |
|
|
|
162,790 |
|
|
|
133,767 |
|
|
|
136,474 |
|
|
|
129,373 |
|
|
265,732 |
|
|
|
315,879 |
|
Non-interest expense |
|
|
|
|
|
|
|
|
|
|
|
|
Salaries and employee benefits |
|
167,326 |
|
|
|
172,355 |
|
|
|
167,131 |
|
|
|
170,912 |
|
|
|
172,817 |
|
|
339,681 |
|
|
|
353,626 |
|
Software and equipment |
|
24,250 |
|
|
|
22,810 |
|
|
|
23,708 |
|
|
|
22,029 |
|
|
|
20,866 |
|
|
47,060 |
|
|
|
41,778 |
|
Operating lease equipment depreciation |
|
8,774 |
|
|
|
9,708 |
|
|
|
10,147 |
|
|
|
10,013 |
|
|
|
9,949 |
|
|
18,482 |
|
|
|
20,720 |
|
Occupancy, net |
|
17,651 |
|
|
|
17,824 |
|
|
|
18,343 |
|
|
|
18,158 |
|
|
|
17,687 |
|
|
35,475 |
|
|
|
37,683 |
|
Data processing |
|
8,010 |
|
|
|
7,505 |
|
|
|
7,207 |
|
|
|
7,104 |
|
|
|
6,920 |
|
|
15,515 |
|
|
|
12,968 |
|
Advertising and marketing |
|
16,615 |
|
|
|
11,924 |
|
|
|
13,981 |
|
|
|
13,443 |
|
|
|
11,305 |
|
|
28,539 |
|
|
|
19,851 |
|
Professional fees |
|
7,876 |
|
|
|
8,401 |
|
|
|
7,551 |
|
|
|
7,052 |
|
|
|
7,304 |
|
|
16,277 |
|
|
|
14,891 |
|
Amortization of other acquisition-related intangible assets |
|
1,579 |
|
|
|
1,609 |
|
|
|
1,811 |
|
|
|
1,877 |
|
|
|
2,039 |
|
|
3,188 |
|
|
|
4,046 |
|
FDIC insurance |
|
6,949 |
|
|
|
7,729 |
|
|
|
7,317 |
|
|
|
6,750 |
|
|
|
6,405 |
|
|
14,678 |
|
|
|
12,963 |
|
OREO expense, net |
|
294 |
|
|
|
(1,032 |
) |
|
|
(641 |
) |
|
|
(1,531 |
) |
|
|
769 |
|
|
(738 |
) |
|
|
518 |
|
Other |
|
29,344 |
|
|
|
25,465 |
|
|
|
26,844 |
|
|
|
26,337 |
|
|
|
24,051 |
|
|
54,809 |
|
|
|
47,957 |
|
Total non-interest expense |
|
288,668 |
|
|
|
284,298 |
|
|
|
283,399 |
|
|
|
282,144 |
|
|
|
280,112 |
|
|
572,966 |
|
|
|
567,001 |
|
Income before taxes |
|
131,661 |
|
|
|
173,680 |
|
|
|
137,045 |
|
|
|
149,742 |
|
|
|
144,150 |
|
|
305,341 |
|
|
|
351,009 |
|
Income tax expense |
|
37,148 |
|
|
|
46,289 |
|
|
|
38,288 |
|
|
|
40,605 |
|
|
|
39,041 |
|
|
83,437 |
|
|
|
92,752 |
|
Net income |
$ |
94,513 |
|
|
$ |
127,391 |
|
|
$ |
98,757 |
|
|
$ |
109,137 |
|
|
$ |
105,109 |
|
$ |
221,904 |
|
|
$ |
258,257 |
|
Preferred stock dividends |
|
6,991 |
|
|
|
6,991 |
|
|
|
6,991 |
|
|
|
6,991 |
|
|
|
6,991 |
|
|
13,982 |
|
|
|
13,982 |
|
Net income applicable to common shares |
$ |
87,522 |
|
|
$ |
120,400 |
|
|
$ |
91,766 |
|
|
$ |
102,146 |
|
|
$ |
98,118 |
|
$ |
207,922 |
|
|
$ |
244,275 |
|
Net income per common share - Basic |
$ |
1.51 |
|
|
$ |
2.11 |
|
|
$ |
1.61 |
|
|
$ |
1.79 |
|
|
$ |
1.72 |
|
$ |
3.61 |
|
|
$ |
4.29 |
|
Net income per common share - Diluted |
$ |
1.49 |
|
|
$ |
2.07 |
|
|
$ |
1.58 |
|
|
$ |
1.77 |
|
|
$ |
1.70 |
|
$ |
3.56 |
|
|
$ |
4.24 |
|
Cash dividends declared per common share |
$ |
0.34 |
|
|
$ |
0.34 |
|
|
$ |
0.31 |
|
|
$ |
0.31 |
|
|
$ |
0.31 |
|
$ |
0.68 |
|
|
$ |
0.62 |
|
Weighted average common shares outstanding |
|
58,063 |
|
|
|
57,196 |
|
|
|
57,022 |
|
|
|
57,000 |
|
|
|
57,049 |
|
|
57,632 |
|
|
|
56,977 |
|
Dilutive potential common shares |
|
775 |
|
|
|
862 |
|
|
|
976 |
|
|
|
753 |
|
|
|
726 |
|
|
823 |
|
|
|
691 |
|
Average common shares and dilutive common shares |
|
58,838 |
|
|
|
58,058 |
|
|
|
57,998 |
|
|
|
57,753 |
|
|
|
57,775 |
|
|
58,455 |
|
|
|
57,668 |
|
TABLE 1: LOAN PORTFOLIO MIX AND GROWTH
RATES
|
|
|
|
|
|
|
|
|
|
% Growth From(2) |
(Dollars in thousands) |
Jun 30, 2022 |
|
Mar 31, 2022 |
|
Dec 31, 2021 |
|
Sep 30,
2021 |
|
Jun 30, 2021 |
Dec 31, 2021(1) |
|
Jun 30, 2021 |
Balance: |
|
|
|
|
|
|
|
|
|
|
|
|
Mortgage loans held-for-sale, excluding early buy-out exercised
loans guaranteed by U.S. government agencies |
$ |
294,688 |
|
$ |
296,548 |
|
$ |
473,102 |
|
$ |
570,663 |
|
$ |
633,006 |
(76) |
% |
|
(53) |
% |
Mortgage loans held-for-sale, early buy-out exercised loans
guaranteed by U.S. government agencies |
|
218,544 |
|
|
309,997 |
|
|
344,810 |
|
|
354,649 |
|
|
351,988 |
(74 |
) |
|
(38 |
) |
Total mortgage loans held-for-sale |
$ |
513,232 |
|
$ |
606,545 |
|
$ |
817,912 |
|
$ |
925,312 |
|
$ |
984,994 |
(75) |
% |
|
(48) |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
Core loans: |
|
|
|
|
|
|
|
|
|
|
|
|
Commercial |
|
|
|
|
|
|
|
|
|
|
|
|
Commercial and industrial |
$ |
5,502,584 |
|
$ |
5,348,266 |
|
$ |
5,346,084 |
|
$ |
4,953,769 |
|
$ |
4,650,607 |
6 |
% |
|
18 |
% |
Asset-based lending |
|
1,552,033 |
|
|
1,365,297 |
|
|
1,299,869 |
|
|
1,066,376 |
|
|
892,109 |
39 |
|
|
74 |
|
Municipal |
|
535,586 |
|
|
533,357 |
|
|
536,498 |
|
|
524,192 |
|
|
511,094 |
0 |
|
|
5 |
|
Leases |
|
1,592,329 |
|
|
1,481,368 |
|
|
1,454,099 |
|
|
1,365,281 |
|
|
1,357,036 |
19 |
|
|
17 |
|
Commercial real estate |
|
|
|
|
|
|
|
|
|
|
|
|
Residential construction |
|
55,941 |
|
|
57,037 |
|
|
51,464 |
|
|
49,754 |
|
|
55,735 |
18 |
|
|
0 |
|
Commercial construction |
|
1,145,602 |
|
|
1,055,972 |
|
|
1,034,988 |
|
|
1,038,034 |
|
|
1,090,447 |
22 |
|
|
5 |
|
Land |
|
304,775 |
|
|
283,397 |
|
|
269,752 |
|
|
255,927 |
|
|
239,067 |
26 |
|
|
27 |
|
Office |
|
1,321,745 |
|
|
1,273,705 |
|
|
1,285,686 |
|
|
1,269,746 |
|
|
1,220,658 |
6 |
|
|
8 |
|
Industrial |
|
1,746,280 |
|
|
1,668,516 |
|
|
1,585,808 |
|
|
1,490,358 |
|
|
1,434,377 |
20 |
|
|
22 |
|
Retail |
|
1,331,059 |
|
|
1,395,021 |
|
|
1,429,567 |
|
|
1,462,101 |
|
|
1,455,638 |
(14 |
) |
|
(9 |
) |
Multi-family |
|
2,171,583 |
|
|
2,175,875 |
|
|
2,043,754 |
|
|
2,038,526 |
|
|
1,984,582 |
13 |
|
|
9 |
|
Mixed use and other |
|
1,330,220 |
|
|
1,325,551 |
|
|
1,289,267 |
|
|
1,281,268 |
|
|
1,197,865 |
6 |
|
|
11 |
|
Home equity |
|
325,826 |
|
|
321,435 |
|
|
335,155 |
|
|
347,662 |
|
|
369,806 |
(6 |
) |
|
(12 |
) |
Residential real estate |
|
|
|
|
|
|
|
|
|
|
|
|
Residential real estate loans for investment |
|
1,965,051 |
|
|
1,749,889 |
|
|
1,606,271 |
|
|
1,520,750 |
|
|
1,479,507 |
45 |
|
|
33 |
|
Residential mortgage loans, early buy-out eligible loans guaranteed
by U.S. government agencies |
|
34,764 |
|
|
13,520 |
|
|
22,707 |
|
|
18,847 |
|
|
44,333 |
NM |
|
(22 |
) |
Residential mortgage loans, early buy-out exercised loans
guaranteed by U.S. government agencies |
|
79,092 |
|
|
36,576 |
|
|
8,121 |
|
|
8,139 |
|
|
6,445 |
NM |
|
NM |
Total core loans |
$ |
20,994,470 |
|
$ |
20,084,782 |
|
$ |
19,599,090 |
|
$ |
18,690,730 |
|
$ |
17,989,306 |
14 |
% |
|
17 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
Niche loans: |
|
|
|
|
|
|
|
|
|
|
|
|
Commercial |
|
|
|
|
|
|
|
|
|
|
|
|
Franchise |
$ |
1,136,929 |
|
$ |
1,181,761 |
|
$ |
1,227,234 |
|
$ |
1,176,569 |
|
$ |
1,060,468 |
(15) |
% |
|
7 |
% |
Mortgage warehouse lines of credit |
|
398,085 |
|
|
261,847 |
|
|
359,818 |
|
|
468,162 |
|
|
529,867 |
21 |
|
|
(25 |
) |
Community Advantage - homeowners association |
|
341,095 |
|
|
324,383 |
|
|
308,286 |
|
|
291,153 |
|
|
287,689 |
21 |
|
|
19 |
|
Insurance agency lending |
|
906,375 |
|
|
833,720 |
|
|
813,897 |
|
|
260,482 |
|
|
273,999 |
23 |
|
|
NM |
Premium Finance receivables |
|
|
|
|
|
|
|
|
|
|
|
|
U.S. property & casualty insurance |
|
4,781,042 |
|
|
4,271,828 |
|
|
4,178,474 |
|
|
3,921,289 |
|
|
3,805,504 |
29 |
|
|
26 |
|
Canada property & casualty insurance |
|
760,405 |
|
|
665,580 |
|
|
677,013 |
|
|
695,688 |
|
|
716,367 |
25 |
|
|
6 |
|
Life insurance |
|
7,608,433 |
|
|
7,354,163 |
|
|
7,042,810 |
|
|
6,655,453 |
|
|
6,359,556 |
16 |
|
|
20 |
|
Consumer and other |
|
44,180 |
|
|
48,519 |
|
|
24,199 |
|
|
22,529 |
|
|
9,024 |
NM |
|
NM |
Total niche loans |
$ |
15,976,544 |
|
$ |
14,941,801 |
|
$ |
14,631,731 |
|
$ |
13,491,325 |
|
$ |
13,042,474 |
19 |
% |
|
22 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial PPP loans: |
|
|
|
|
|
|
|
|
|
|
|
|
Originated in 2020 |
$ |
18,547 |
|
$ |
40,016 |
|
$ |
74,412 |
|
$ |
172,849 |
|
$ |
656,502 |
NM |
|
(97) |
% |
Originated in 2021 |
|
63,542 |
|
|
213,948 |
|
|
483,871 |
|
|
909,139 |
|
|
1,222,905 |
NM |
|
(95 |
) |
Total commercial PPP loans |
$ |
82,089 |
|
$ |
253,964 |
|
$ |
558,283 |
|
$ |
1,081,988 |
|
$ |
1,879,407 |
NM |
|
(96) |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
Total loans, net of unearned income |
$ |
37,053,103 |
|
$ |
35,280,547 |
|
$ |
34,789,104 |
|
$ |
33,264,043 |
|
$ |
32,911,187 |
13 |
% |
|
13 |
% |
(1) |
Annualized. |
(2) |
NM - Not
meaningful. |
TABLE 2: DEPOSIT PORTFOLIO MIX AND
GROWTH RATES
|
|
|
|
|
|
|
|
|
|
% Growth From |
(Dollars in thousands) |
Jun 30,
2022 |
|
Mar 31,
2022 |
|
Dec 31,
2021 |
|
Sep 30,
2021 |
|
Jun 30,
2021 |
Mar 31,
2022(1) |
|
Jun 30, 2021 |
Balance: |
|
|
|
|
|
|
|
|
|
|
|
|
Non-interest-bearing |
$ |
13,855,844 |
|
|
$ |
13,748,918 |
|
|
$ |
14,179,980 |
|
|
$ |
13,255,417 |
|
|
$ |
12,796,110 |
|
3 |
% |
|
8 |
% |
NOW and interest-bearing demand deposits |
|
5,918,908 |
|
|
|
5,089,724 |
|
|
|
4,646,944 |
|
|
|
4,255,940 |
|
|
|
3,933,167 |
|
65 |
|
|
50 |
|
Wealth management deposits(2) |
|
3,182,407 |
|
|
|
2,542,995 |
|
|
|
2,612,759 |
|
|
|
2,300,818 |
|
|
|
2,150,851 |
|
101 |
|
|
48 |
|
Money market |
|
12,273,350 |
|
|
|
13,012,460 |
|
|
|
12,840,432 |
|
|
|
12,148,541 |
|
|
|
11,784,213 |
|
(23 |
) |
|
4 |
|
Savings |
|
3,686,596 |
|
|
|
4,089,230 |
|
|
|
3,846,681 |
|
|
|
3,861,296 |
|
|
|
3,776,400 |
|
(39 |
) |
|
(2 |
) |
Time certificates of deposit |
|
3,676,221 |
|
|
|
3,735,995 |
|
|
|
3,968,789 |
|
|
|
4,130,546 |
|
|
|
4,363,875 |
|
(6 |
) |
|
(16 |
) |
Total deposits |
$ |
42,593,326 |
|
|
$ |
42,219,322 |
|
|
$ |
42,095,585 |
|
|
$ |
39,952,558 |
|
|
$ |
38,804,616 |
|
4 |
% |
|
10 |
% |
Mix: |
|
|
|
|
|
|
|
|
|
|
|
|
Non-interest-bearing |
|
33 |
% |
|
|
32 |
% |
|
|
34 |
% |
|
|
33 |
% |
|
|
33 |
% |
|
|
|
NOW and interest-bearing demand deposits |
|
13 |
|
|
|
12 |
|
|
|
11 |
|
|
|
11 |
|
|
|
10 |
|
|
|
|
Wealth management deposits(2) |
|
7 |
|
|
|
6 |
|
|
|
6 |
|
|
|
6 |
|
|
|
5 |
|
|
|
|
Money market |
|
29 |
|
|
|
31 |
|
|
|
31 |
|
|
|
30 |
|
|
|
30 |
|
|
|
|
Savings |
|
9 |
|
|
|
10 |
|
|
|
9 |
|
|
|
10 |
|
|
|
10 |
|
|
|
|
Time certificates of deposit |
|
9 |
|
|
|
9 |
|
|
|
9 |
|
|
|
10 |
|
|
|
12 |
|
|
|
|
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. |
TABLE 3: TIME CERTIFICATES OF DEPOSIT
MATURITY/RE-PRICING ANALYSIS
As of June 30, 2022
(Dollars in thousands) |
Total Time
Certificates of
Deposit |
|
Weighted-Average
Rate of Maturing
Time Certificates
of Deposit(1) |
1-3 months |
$ |
806,666 |
|
0.36 |
% |
4-6 months |
|
714,444 |
|
0.39 |
|
7-9 months |
|
600,188 |
|
0.39 |
|
10-12 months |
|
600,812 |
|
0.48 |
|
13-18 months |
|
562,331 |
|
0.66 |
|
19-24 months |
|
241,172 |
|
0.45 |
|
24+ months |
|
150,608 |
|
1.03 |
|
Total |
$ |
3,676,221 |
|
0.47 |
% |
(1) |
Weighted-average rate excludes the impact of purchase
accounting fair value adjustments. |
TABLE 4: QUARTERLY AVERAGE BALANCES
|
|
Average Balance for three months ended, |
|
|
Jun 30, |
|
Mar 31, |
|
Dec 31, |
|
Sep 30, |
|
Jun 30, |
(In thousands) |
|
|
2022 |
|
|
|
2022 |
|
|
|
2021 |
|
|
|
2021 |
|
|
|
2021 |
|
Interest-bearing deposits with banks, securities purchased under
resale agreements and cash equivalents(1) |
|
$ |
3,265,607 |
|
|
$ |
4,563,726 |
|
|
$ |
6,148,165 |
|
|
$ |
5,112,720 |
|
|
$ |
3,844,355 |
|
Investment securities(2) |
|
|
6,589,947 |
|
|
|
6,378,022 |
|
|
|
5,317,351 |
|
|
|
5,065,593 |
|
|
|
4,771,403 |
|
FHLB and FRB stock |
|
|
136,930 |
|
|
|
135,912 |
|
|
|
135,414 |
|
|
|
136,001 |
|
|
|
136,324 |
|
Liquidity management assets(3) |
|
|
9,992,484 |
|
|
|
11,077,660 |
|
|
|
11,600,930 |
|
|
|
10,314,314 |
|
|
|
8,752,082 |
|
Other earning assets(3)(4) |
|
|
24,059 |
|
|
|
25,192 |
|
|
|
28,298 |
|
|
|
28,238 |
|
|
|
23,354 |
|
Mortgage loans held-for-sale |
|
|
560,707 |
|
|
|
664,019 |
|
|
|
827,672 |
|
|
|
871,824 |
|
|
|
991,011 |
|
Loans, net of unearned income(3)(5) |
|
|
35,860,329 |
|
|
|
34,830,520 |
|
|
|
33,677,777 |
|
|
|
32,985,445 |
|
|
|
33,085,174 |
|
Total earning assets(3) |
|
|
46,437,579 |
|
|
|
46,597,391 |
|
|
|
46,134,677 |
|
|
|
44,199,821 |
|
|
|
42,851,621 |
|
Allowance for loan and investment security losses |
|
|
(260,547 |
) |
|
|
(253,080 |
) |
|
|
(254,874 |
) |
|
|
(269,963 |
) |
|
|
(285,686 |
) |
Cash and due from banks |
|
|
476,741 |
|
|
|
481,634 |
|
|
|
468,331 |
|
|
|
425,000 |
|
|
|
470,566 |
|
Other assets |
|
|
2,699,653 |
|
|
|
2,675,899 |
|
|
|
2,770,643 |
|
|
|
2,837,652 |
|
|
|
2,910,250 |
|
Total assets |
|
$ |
49,353,426 |
|
|
$ |
49,501,844 |
|
|
$ |
49,118,777 |
|
|
$ |
47,192,510 |
|
|
$ |
45,946,751 |
|
|
|
|
|
|
|
|
|
|
|
|
NOW and interest-bearing demand deposits |
|
$ |
5,230,702 |
|
|
$ |
4,788,272 |
|
|
$ |
4,439,242 |
|
|
$ |
4,147,436 |
|
|
$ |
3,829,023 |
|
Wealth management deposits |
|
|
2,835,267 |
|
|
|
2,505,800 |
|
|
|
2,646,879 |
|
|
|
2,353,721 |
|
|
|
2,226,612 |
|
Money market accounts |
|
|
11,892,948 |
|
|
|
12,773,805 |
|
|
|
12,665,167 |
|
|
|
11,956,346 |
|
|
|
11,487,954 |
|
Savings accounts |
|
|
3,882,856 |
|
|
|
3,904,299 |
|
|
|
3,766,037 |
|
|
|
3,851,523 |
|
|
|
3,728,271 |
|
Time deposits |
|
|
3,687,778 |
|
|
|
3,861,371 |
|
|
|
4,058,282 |
|
|
|
4,236,317 |
|
|
|
4,632,796 |
|
Interest-bearing deposits |
|
|
27,529,551 |
|
|
|
27,833,547 |
|
|
|
27,575,607 |
|
|
|
26,545,343 |
|
|
|
25,904,656 |
|
Federal Home Loan Bank advances |
|
|
1,197,390 |
|
|
|
1,241,071 |
|
|
|
1,241,073 |
|
|
|
1,241,073 |
|
|
|
1,235,142 |
|
Other borrowings |
|
|
489,779 |
|
|
|
494,267 |
|
|
|
501,933 |
|
|
|
512,785 |
|
|
|
525,924 |
|
Subordinated notes |
|
|
437,084 |
|
|
|
436,966 |
|
|
|
436,861 |
|
|
|
436,746 |
|
|
|
436,644 |
|
Junior subordinated debentures |
|
|
253,566 |
|
|
|
253,566 |
|
|
|
253,566 |
|
|
|
253,566 |
|
|
|
253,566 |
|
Total interest-bearing liabilities |
|
|
29,907,370 |
|
|
|
30,259,417 |
|
|
|
30,009,040 |
|
|
|
28,989,513 |
|
|
|
28,355,932 |
|
Non-interest-bearing deposits |
|
|
13,805,128 |
|
|
|
13,734,064 |
|
|
|
13,640,270 |
|
|
|
12,834,084 |
|
|
|
12,246,274 |
|
Other liabilities |
|
|
1,114,818 |
|
|
|
1,007,903 |
|
|
|
1,035,514 |
|
|
|
1,024,998 |
|
|
|
1,087,767 |
|
Equity |
|
|
4,526,110 |
|
|
|
4,500,460 |
|
|
|
4,433,953 |
|
|
|
4,343,915 |
|
|
|
4,256,778 |
|
Total liabilities and shareholders’ equity |
|
$ |
49,353,426 |
|
|
$ |
49,501,844 |
|
|
$ |
49,118,777 |
|
|
$ |
47,192,510 |
|
|
$ |
45,946,751 |
|
|
|
|
|
|
|
|
|
|
|
|
Net free funds/contribution(6) |
|
$ |
16,530,209 |
|
|
$ |
16,337,974 |
|
|
$ |
16,125,637 |
|
|
$ |
15,210,308 |
|
|
$ |
14,495,689 |
|
(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, |
|
|
Jun 30, |
|
Mar 31, |
|
Dec 31, |
|
Sep 30, |
|
Jun 30, |
(In thousands) |
|
|
2022 |
|
|
|
2022 |
|
|
|
2021 |
|
|
|
2021 |
|
|
|
2021 |
|
Interest income: |
|
|
|
|
|
|
|
|
|
|
Interest-bearing deposits with banks, securities purchased under
resale agreements and cash equivalents |
|
$ |
7,154 |
|
|
$ |
2,118 |
|
|
$ |
2,427 |
|
|
$ |
2,000 |
|
|
$ |
1,153 |
|
Investment securities |
|
|
37,013 |
|
|
|
32,863 |
|
|
|
27,696 |
|
|
|
25,681 |
|
|
|
24,117 |
|
FHLB and FRB stock |
|
|
1,823 |
|
|
|
1,772 |
|
|
|
1,776 |
|
|
|
1,777 |
|
|
|
1,769 |
|
Liquidity management assets(1) |
|
|
45,990 |
|
|
|
36,753 |
|
|
|
31,899 |
|
|
|
29,458 |
|
|
|
27,039 |
|
Other earning assets(1) |
|
|
210 |
|
|
|
181 |
|
|
|
194 |
|
|
|
188 |
|
|
|
150 |
|
Mortgage loans held-for-sale |
|
|
5,740 |
|
|
|
6,087 |
|
|
|
7,234 |
|
|
|
7,716 |
|
|
|
8,183 |
|
Loans, net of unearned income(1) |
|
|
321,069 |
|
|
|
286,125 |
|
|
|
289,557 |
|
|
|
285,998 |
|
|
|
285,116 |
|
Total interest income |
|
$ |
373,009 |
|
|
$ |
329,146 |
|
|
$ |
328,884 |
|
|
$ |
323,360 |
|
|
$ |
320,488 |
|
|
|
|
|
|
|
|
|
|
|
|
Interest expense: |
|
|
|
|
|
|
|
|
|
|
NOW and interest-bearing demand deposits |
|
$ |
2,553 |
|
|
$ |
1,990 |
|
|
$ |
1,913 |
|
|
$ |
1,916 |
|
|
$ |
1,886 |
|
Wealth management deposits |
|
|
3,685 |
|
|
|
918 |
|
|
|
1,402 |
|
|
|
1,176 |
|
|
|
958 |
|
Money market accounts |
|
|
8,559 |
|
|
|
7,648 |
|
|
|
7,658 |
|
|
|
7,905 |
|
|
|
8,373 |
|
Savings accounts |
|
|
347 |
|
|
|
336 |
|
|
|
345 |
|
|
|
406 |
|
|
|
402 |
|
Time deposits |
|
|
3,841 |
|
|
|
3,962 |
|
|
|
5,254 |
|
|
|
7,902 |
|
|
|
12,679 |
|
Interest-bearing deposits |
|
|
18,985 |
|
|
|
14,854 |
|
|
|
16,572 |
|
|
|
19,305 |
|
|
|
24,298 |
|
Federal Home Loan Bank advances |
|
|
4,878 |
|
|
|
4,816 |
|
|
|
4,923 |
|
|
|
4,931 |
|
|
|
4,887 |
|
Other borrowings |
|
|
2,734 |
|
|
|
2,239 |
|
|
|
2,250 |
|
|
|
2,501 |
|
|
|
2,568 |
|
Subordinated notes |
|
|
5,517 |
|
|
|
5,482 |
|
|
|
5,514 |
|
|
|
5,480 |
|
|
|
5,512 |
|
Junior subordinated debentures |
|
|
2,050 |
|
|
|
1,567 |
|
|
|
2,744 |
|
|
|
2,744 |
|
|
|
2,724 |
|
Total interest expense |
|
$ |
34,164 |
|
|
$ |
28,958 |
|
|
$ |
32,003 |
|
|
$ |
34,961 |
|
|
$ |
39,989 |
|
|
|
|
|
|
|
|
|
|
|
|
Less: Fully taxable-equivalent adjustment |
|
|
(1,041 |
) |
|
|
(894 |
) |
|
|
(905 |
) |
|
|
(903 |
) |
|
|
(909 |
) |
Net interest income (GAAP)(2) |
|
|
337,804 |
|
|
|
299,294 |
|
|
|
295,976 |
|
|
|
287,496 |
|
|
|
279,590 |
|
Fully taxable-equivalent adjustment |
|
|
1,041 |
|
|
|
894 |
|
|
|
905 |
|
|
|
903 |
|
|
|
909 |
|
Net interest income, fully taxable-equivalent
(non-GAAP)(2) |
|
$ |
338,845 |
|
|
$ |
300,188 |
|
|
$ |
296,881 |
|
|
$ |
288,399 |
|
|
$ |
280,499 |
|
(1) |
Interest income on tax-advantaged loans, trading securities and
investment securities reflects a taxable-equivalent adjustment
based on the marginal federal corporate tax rate in effect as of
the applicable period. |
(2) |
See “Supplemental Non-GAAP Financial Measures/Ratios” at Table
18 for additional information on this performance
measure/ratio. |
TABLE 6: QUARTERLY NET INTEREST
MARGIN
|
|
Net Interest Margin for three months ended, |
|
|
Jun 30, 2022 |
|
Mar 31, 2022 |
|
Dec 31,
2021 |
|
Sep 30, 2021 |
|
Jun 30,
2021 |
Yield earned on: |
|
|
|
|
|
|
|
|
|
|
Interest-bearing deposits with banks, securities purchased under
resale agreements and cash equivalents |
|
0.88 |
% |
|
0.19 |
% |
|
0.16 |
% |
|
0.16 |
% |
|
0.12 |
% |
Investment securities |
|
2.25 |
|
|
2.09 |
|
|
2.07 |
|
|
2.01 |
|
|
2.03 |
|
FHLB and FRB stock |
|
5.34 |
|
|
5.29 |
|
|
5.20 |
|
|
5.18 |
|
|
5.20 |
|
Liquidity management assets |
|
1.85 |
|
|
1.35 |
|
|
1.09 |
|
|
1.13 |
|
|
1.24 |
|
Other earning assets |
|
3.49 |
|
|
2.91 |
|
|
2.71 |
|
|
2.64 |
|
|
2.59 |
|
Mortgage loans held-for-sale |
|
4.11 |
|
|
3.72 |
|
|
3.47 |
|
|
3.51 |
|
|
3.31 |
|
Loans, net of unearned income |
|
3.59 |
|
|
3.33 |
|
|
3.41 |
|
|
3.44 |
|
|
3.46 |
|
Total earning assets |
|
3.22 |
% |
|
2.86 |
% |
|
2.83 |
% |
|
2.90 |
% |
|
3.00 |
% |
|
|
|
|
|
|
|
|
|
|
|
Rate paid on: |
|
|
|
|
|
|
|
|
|
|
NOW and interest-bearing demand deposits |
|
0.20 |
% |
|
0.17 |
% |
|
0.17 |
% |
|
0.18 |
% |
|
0.20 |
% |
Wealth management deposits |
|
0.52 |
|
|
0.15 |
|
|
0.21 |
|
|
0.20 |
|
|
0.17 |
|
Money market accounts |
|
0.29 |
|
|
0.24 |
|
|
0.24 |
|
|
0.26 |
|
|
0.29 |
|
Savings accounts |
|
0.04 |
|
|
0.03 |
|
|
0.04 |
|
|
0.04 |
|
|
0.04 |
|
Time deposits |
|
0.42 |
|
|
0.42 |
|
|
0.51 |
|
|
0.74 |
|
|
1.10 |
|
Interest-bearing deposits |
|
0.28 |
|
|
0.22 |
|
|
0.24 |
|
|
0.29 |
|
|
0.38 |
|
Federal Home Loan Bank advances |
|
1.63 |
|
|
1.57 |
|
|
1.57 |
|
|
1.58 |
|
|
1.59 |
|
Other borrowings |
|
2.24 |
|
|
1.84 |
|
|
1.78 |
|
|
1.94 |
|
|
1.96 |
|
Subordinated notes |
|
5.05 |
|
|
5.02 |
|
|
5.05 |
|
|
5.02 |
|
|
5.05 |
|
Junior subordinated debentures |
|
3.20 |
|
|
2.47 |
|
|
4.23 |
|
|
4.23 |
|
|
4.25 |
|
Total interest-bearing liabilities |
|
0.46 |
% |
|
0.39 |
% |
|
0.42 |
% |
|
0.48 |
% |
|
0.56 |
% |
|
|
|
|
|
|
|
|
|
|
|
Interest rate spread(1)(2) |
|
2.76 |
% |
|
2.47 |
% |
|
2.41 |
% |
|
2.42 |
% |
|
2.44 |
% |
Less: Fully taxable-equivalent adjustment |
|
(0.01 |
) |
|
(0.01 |
) |
|
(0.01 |
) |
|
(0.01 |
) |
|
(0.01 |
) |
Net free funds/contribution(3) |
|
0.17 |
|
|
0.14 |
|
|
0.14 |
|
|
0.17 |
|
|
0.19 |
|
Net interest margin (GAAP)(2) |
|
2.92 |
% |
|
2.60 |
% |
|
2.54 |
% |
|
2.58 |
% |
|
2.62 |
% |
Fully taxable-equivalent adjustment |
|
0.01 |
|
|
0.01 |
|
|
0.01 |
|
|
0.01 |
|
|
0.01 |
|
Net interest margin, fully taxable-equivalent
(non-GAAP)(2) |
|
2.93 |
% |
|
2.61 |
% |
|
2.55 |
% |
|
2.59 |
% |
|
2.63 |
% |
(1) |
Interest rate spread is the difference between the yield earned
on earning assets and the rate paid on interest-bearing
liabilities. |
(2) |
See “Supplemental Non-GAAP Financial Measures/Ratios” at Table
18 for additional information on this performance
measure/ratio. |
(3) |
Net free funds are the difference between total average earning
assets and total average interest-bearing liabilities. The
estimated contribution to net interest margin from net free funds
is calculated using the rate paid for total interest-bearing
liabilities. |
TABLE 7: YEAR-TO-DATE AVERAGE BALANCES,
AND NET INTEREST INCOME AND MARGIN
|
Average Balance
for six months ended, |
Interest
for six months ended, |
Yield/Rate
for six months ended, |
(Dollars in thousands) |
Jun 30, 2022 |
|
Jun 30,
2021 |
Jun 30, 2022 |
|
Jun 30, 2021 |
Jun 30, 2022 |
|
Jun 30, 2021 |
Interest-bearing deposits with banks, securities purchased under
resale agreements and cash equivalents(1) |
$ |
3,911,080 |
|
|
$ |
4,036,553 |
|
$ |
9,272 |
|
|
$ |
2,352 |
|
0.48 |
% |
|
0.12 |
% |
Investment securities(2) |
|
6,484,570 |
|
|
|
4,360,323 |
|
|
69,876 |
|
|
|
43,881 |
|
2.17 |
|
|
2.03 |
|
FHLB and FRB stock |
|
136,424 |
|
|
|
136,043 |
|
|
3,595 |
|
|
|
3,514 |
|
5.31 |
|
|
5.21 |
|
Liquidity management assets(3)(4) |
$ |
10,532,074 |
|
|
$ |
8,532,919 |
|
$ |
82,743 |
|
|
$ |
49,747 |
|
1.58 |
% |
|
1.18 |
% |
Other earning assets(3)(4)(5) |
|
24,622 |
|
|
|
21,870 |
|
|
391 |
|
|
|
275 |
|
3.20 |
|
|
2.55 |
|
Mortgage loans held-for-sale |
|
612,078 |
|
|
|
1,070,985 |
|
|
11,827 |
|
|
|
17,219 |
|
3.90 |
|
|
3.24 |
|
Loans, net of unearned income(3)(4)(6) |
|
35,348,269 |
|
|
|
32,765,825 |
|
|
607,194 |
|
|
|
559,600 |
|
3.46 |
|
|
3.44 |
|
Total earning assets(4) |
$ |
46,517,043 |
|
|
$ |
42,391,599 |
|
$ |
702,155 |
|
|
$ |
626,841 |
|
3.04 |
% |
|
2.98 |
% |
Allowance for loan and investment security losses |
|
(256,834 |
) |
|
|
(306,268 |
) |
|
|
|
|
|
|
Cash and due from banks |
|
479,174 |
|
|
|
418,777 |
|
|
|
|
|
|
|
Other assets |
|
2,687,842 |
|
|
|
2,966,281 |
|
|
|
|
|
|
|
Total assets |
$ |
49,427,225 |
|
|
$ |
45,470,389 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NOW and interest-bearing demand deposits |
$ |
5,010,709 |
|
|
$ |
3,761,614 |
|
$ |
4,543 |
|
|
$ |
3,909 |
|
0.18 |
% |
|
0.21 |
% |
Wealth management deposits |
|
2,671,444 |
|
|
|
2,220,223 |
|
|
4,603 |
|
|
|
1,957 |
|
0.35 |
|
|
0.18 |
|
Money market accounts |
|
12,330,943 |
|
|
|
11,284,383 |
|
|
16,207 |
|
|
|
16,468 |
|
0.27 |
|
|
0.29 |
|
Savings accounts |
|
3,893,519 |
|
|
|
3,658,307 |
|
|
683 |
|
|
|
832 |
|
0.04 |
|
|
0.05 |
|
Time deposits |
|
3,774,095 |
|
|
|
4,753,424 |
|
|
7,803 |
|
|
|
29,076 |
|
0.42 |
|
|
1.23 |
|
Interest-bearing deposits |
$ |
27,680,710 |
|
|
$ |
25,677,951 |
|
$ |
33,839 |
|
|
$ |
52,242 |
|
0.25 |
% |
|
0.41 |
% |
Federal Home Loan Bank advances |
|
1,219,110 |
|
|
|
1,231,806 |
|
|
9,694 |
|
|
|
9,727 |
|
1.60 |
|
|
1.59 |
|
Other borrowings |
|
492,011 |
|
|
|
522,078 |
|
|
4,973 |
|
|
|
5,177 |
|
2.04 |
|
|
2.00 |
|
Subordinated notes |
|
437,025 |
|
|
|
436,588 |
|
|
10,999 |
|
|
|
10,989 |
|
5.03 |
|
|
5.03 |
|
Junior subordinated debentures |
|
253,566 |
|
|
|
253,566 |
|
|
3,617 |
|
|
|
5,428 |
|
2.84 |
|
|
4.26 |
|
Total interest-bearing liabilities |
$ |
30,082,422 |
|
|
$ |
28,121,989 |
|
$ |
63,122 |
|
|
$ |
83,563 |
|
0.42 |
% |
|
0.60 |
% |
Non-interest-bearing deposits |
|
13,769,792 |
|
|
|
12,029,936 |
|
|
|
|
|
|
|
Other liabilities |
|
1,061,655 |
|
|
|
1,107,376 |
|
|
|
|
|
|
|
Equity |
|
4,513,356 |
|
|
|
4,211,088 |
|
|
|
|
|
|
|
Total liabilities and shareholders’ equity |
$ |
49,427,225 |
|
|
$ |
45,470,389 |
|
|
|
|
|
|
|
Interest rate spread(4)(7) |
|
|
|
|
|
|
2.62 |
% |
|
2.38 |
% |
Less: Fully taxable-equivalent adjustment |
|
|
|
|
(1,935 |
) |
|
|
(1,793 |
) |
(0.01 |
) |
|
(0.01 |
) |
Net free funds/contribution(8) |
$ |
16,434,621 |
|
|
$ |
14,269,610 |
|
|
|
|
0.15 |
|
|
0.21 |
|
Net interest income/margin (GAAP)(4) |
|
|
|
$ |
637,098 |
|
|
$ |
541,485 |
|
2.76 |
% |
|
2.58 |
% |
Fully taxable-equivalent adjustment |
|
|
|
|
1,935 |
|
|
|
1,793 |
|
0.01 |
|
|
0.01 |
|
Net interest income/margin, fully taxable-equivalent
(non-GAAP)(4) |
|
|
|
$ |
639,033 |
|
|
$ |
543,278 |
|
2.77 |
% |
|
2.59 |
% |
(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 |
Jun 30, 2022 |
17.0 |
% |
|
9.0 |
% |
|
(12.6 |
) |
% |
Mar 31, 2022 |
21.4 |
|
|
11.0 |
|
|
(11.3 |
) |
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 |
) |
Ramp Scenario |
+200
Basis
Points |
|
+100
Basis
Points |
|
-100
Basis
Points |
Jun 30, 2022 |
10.2 |
% |
|
5.3 |
% |
|
(6.9 |
) |
% |
Mar 31, 2022 |
11.2 |
|
|
5.8 |
|
|
(7.1 |
) |
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 |
) |
TABLE 9: MATURITIES AND SENSITIVITIES TO
CHANGES IN INTEREST RATES
|
Loans repricing or maturity period |
As of June 30, 2022 |
One year or
less
|
|
From one to
five years
|
|
From five to fifteen years
|
|
After fifteen years
|
|
Total
|
(In
thousands) |
|
|
|
|
Commercial |
|
|
|
|
|
|
|
|
|
Fixed rate |
$ |
464,118 |
|
$ |
2,246,393 |
|
$ |
1,395,019 |
|
$ |
12,365 |
|
$ |
4,117,895 |
Fixed rate - PPP |
|
9,032 |
|
|
73,057 |
|
|
— |
|
|
— |
|
|
82,089 |
Variable rate |
|
7,843,285 |
|
|
3,783 |
|
|
53 |
|
|
— |
|
|
7,847,121 |
Total commercial |
$ |
8,316,435 |
|
$ |
2,323,233 |
|
$ |
1,395,072 |
|
$ |
12,365 |
|
$ |
12,047,105 |
Commercial real estate |
|
|
|
|
|
|
|
|
|
Fixed rate |
|
425,615 |
|
|
2,542,948 |
|
|
599,290 |
|
|
40,377 |
|
|
3,608,230 |
Variable rate |
|
5,780,969 |
|
|
18,006 |
|
|
— |
|
|
— |
|
|
5,798,975 |
Total commercial real estate |
$ |
6,206,584 |
|
$ |
2,560,954 |
|
$ |
599,290 |
|
$ |
40,377 |
|
$ |
9,407,205 |
Home equity |
|
|
|
|
|
|
|
|
|
Fixed rate |
|
12,945 |
|
|
3,571 |
|
|
2,124 |
|
|
39 |
|
|
18,679 |
Variable rate |
|
307,147 |
|
|
— |
|
|
— |
|
|
— |
|
|
307,147 |
Total home equity |
$ |
320,092 |
|
$ |
3,571 |
|
$ |
2,124 |
|
$ |
39 |
|
$ |
325,826 |
Residential real estate |
|
|
|
|
|
|
|
|
|
Fixed rate |
|
15,003 |
|
|
4,731 |
|
|
31,471 |
|
|
984,504 |
|
|
1,035,709 |
Variable rate |
|
62,764 |
|
|
206,163 |
|
|
774,271 |
|
|
— |
|
|
1,043,198 |
Total residential real estate |
$ |
77,767 |
|
$ |
210,894 |
|
$ |
805,742 |
|
$ |
984,504 |
|
$ |
2,078,907 |
Premium finance receivables - property & casualty |
|
|
|
|
|
|
|
|
|
Fixed rate |
|
5,380,040 |
|
|
161,407 |
|
|
— |
|
|
— |
|
|
5,541,447 |
Variable rate |
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
Total premium finance receivables - property & casualty |
$ |
5,380,040 |
|
$ |
161,407 |
|
$ |
— |
|
$ |
— |
|
$ |
5,541,447 |
Premium finance receivables - life insurance |
|
|
|
|
|
|
|
|
|
Fixed rate |
|
16,346 |
|
|
497,654 |
|
|
21,784 |
|
|
— |
|
|
535,784 |
Variable rate |
|
7,072,649 |
|
|
— |
|
|
— |
|
|
— |
|
|
7,072,649 |
Total premium finance receivables - life insurance |
$ |
7,088,995 |
|
$ |
497,654 |
|
$ |
21,784 |
|
$ |
— |
|
$ |
7,608,433 |
Consumer and other |
|
|
|
|
|
|
|
|
|
Fixed rate |
|
10,538 |
|
|
5,276 |
|
|
97 |
|
|
490 |
|
|
16,401 |
Variable rate |
|
27,779 |
|
|
— |
|
|
— |
|
|
— |
|
|
27,779 |
Total consumer and other |
$ |
38,317 |
|
$ |
5,276 |
|
$ |
97 |
|
$ |
490 |
|
$ |
44,180 |
|
|
|
|
|
|
|
|
|
|
Total per category |
|
|
|
|
|
|
|
|
|
Fixed rate |
|
6,324,605 |
|
|
5,461,980 |
|
|
2,049,785 |
|
|
1,037,775 |
|
|
14,874,145 |
Fixed rate - PPP |
|
9,032 |
|
|
73,057 |
|
|
— |
|
|
— |
|
|
82,089 |
Variable rate |
|
21,094,593 |
|
|
227,952 |
|
|
774,324 |
|
|
— |
|
|
22,096,869 |
Total loans, net of unearned income |
$ |
27,428,230 |
|
$ |
5,762,989 |
|
$ |
2,824,109 |
|
$ |
1,037,775 |
|
$ |
37,053,103 |
|
|
|
|
|
|
|
|
|
|
Variable Rate Loan Pricing by Index: |
|
|
|
|
|
|
|
|
|
Prime |
|
|
|
|
|
|
|
|
$ |
3,699,801 |
One- month LIBOR |
|
|
|
|
|
|
|
|
|
6,534,892 |
Three- month LIBOR |
|
|
|
|
|
|
|
|
|
237,028 |
Twelve- month LIBOR |
|
|
|
|
|
|
|
|
|
6,747,889 |
U.S. Treasury tenors |
|
|
|
|
|
|
|
|
|
130,698 |
SOFR tenors |
|
|
|
|
|
|
|
|
|
3,586,073 |
Ameribor tenors |
|
|
|
|
|
|
|
|
|
332,768 |
BSBY tenors |
|
|
|
|
|
|
|
|
|
29,945 |
Other |
|
|
|
|
|
|
|
|
|
797,775 |
Total variable rate |
|
|
|
|
|
|
|
|
$ |
22,096,869 |
LIBOR - London Interbank Offered Rate.
SOFR - Secured Overnight Financing Rate.
Ameribor - American Interbank Offered Rate.
BSBY - Bloomberg Short Term Bank Yield Index.
Graph available at the following
link: http://ml.globenewswire.com/Resource/Download/eff3a29a-8dca-4673-9a88-4d8b93f15867
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 $6.5
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 |
|
Second Quarter 2022 |
|
125 |
bps |
134 |
bps |
152 |
bps |
First
Quarter 2022 |
|
25 |
|
35 |
|
152 |
|
Fourth
Quarter 2021 |
|
0 |
|
2 |
|
34 |
|
Third
Quarter 2021 |
|
0 |
|
-2 |
|
-1 |
|
Second Quarter 2021 |
|
0 |
|
-1 |
|
-3 |
|
TABLE 10: ALLOWANCE FOR CREDIT LOSSES
|
|
Three Months Ended |
Six Months Ended |
|
|
Jun 30, |
|
Mar 31, |
|
Dec 31, |
|
Sep 30, |
|
Jun 30, |
Jun 30, |
|
Jun 30, |
(Dollars in thousands) |
|
|
2022 |
|
|
|
2022 |
|
|
|
2021 |
|
|
|
2021 |
|
|
|
2021 |
|
|
2022 |
|
|
|
2021 |
|
Allowance for credit losses at beginning of
period |
|
$ |
301,327 |
|
|
$ |
299,731 |
|
|
$ |
296,138 |
|
|
$ |
304,121 |
|
|
$ |
321,308 |
|
$ |
299,731 |
|
|
$ |
379,969 |
|
Provision for credit losses |
|
|
20,417 |
|
|
|
4,106 |
|
|
|
9,299 |
|
|
|
(7,916 |
) |
|
|
(15,299 |
) |
|
24,523 |
|
|
|
(60,646 |
) |
Initial allowance for credit losses recognized on PCD
assets acquired during the
period(1) |
|
|
— |
|
|
|
— |
|
|
|
470 |
|
|
|
— |
|
|
|
— |
|
|
— |
|
|
|
— |
|
Other adjustments |
|
|
(56 |
) |
|
|
22 |
|
|
|
5 |
|
|
|
(65 |
) |
|
|
34 |
|
|
(34 |
) |
|
|
65 |
|
Charge-offs: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial |
|
|
8,928 |
|
|
|
1,414 |
|
|
|
4,431 |
|
|
|
1,352 |
|
|
|
3,237 |
|
|
10,342 |
|
|
|
15,018 |
|
Commercial real estate |
|
|
40 |
|
|
|
777 |
|
|
|
495 |
|
|
|
406 |
|
|
|
1,412 |
|
|
817 |
|
|
|
2,392 |
|
Home equity |
|
|
192 |
|
|
|
197 |
|
|
|
135 |
|
|
|
59 |
|
|
|
142 |
|
|
389 |
|
|
|
142 |
|
Residential real estate |
|
|
— |
|
|
|
466 |
|
|
|
1,067 |
|
|
|
10 |
|
|
|
3 |
|
|
466 |
|
|
|
5 |
|
Premium finance receivables |
|
|
2,903 |
|
|
|
1,678 |
|
|
|
2,314 |
|
|
|
1,390 |
|
|
|
2,077 |
|
|
4,581 |
|
|
|
5,316 |
|
Consumer and other |
|
|
253 |
|
|
|
193 |
|
|
|
157 |
|
|
|
112 |
|
|
|
104 |
|
|
446 |
|
|
|
218 |
|
Total charge-offs |
|
|
12,316 |
|
|
|
4,725 |
|
|
|
8,599 |
|
|
|
3,329 |
|
|
|
6,975 |
|
|
17,041 |
|
|
|
23,091 |
|
Recoveries: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial |
|
|
996 |
|
|
|
538 |
|
|
|
389 |
|
|
|
816 |
|
|
|
902 |
|
|
1,534 |
|
|
|
1,354 |
|
Commercial real estate |
|
|
553 |
|
|
|
32 |
|
|
|
217 |
|
|
|
373 |
|
|
|
514 |
|
|
585 |
|
|
|
714 |
|
Home equity |
|
|
123 |
|
|
|
93 |
|
|
|
461 |
|
|
|
313 |
|
|
|
328 |
|
|
216 |
|
|
|
429 |
|
Residential real estate |
|
|
6 |
|
|
|
5 |
|
|
|
85 |
|
|
|
5 |
|
|
|
36 |
|
|
11 |
|
|
|
240 |
|
Premium finance receivables |
|
|
1,119 |
|
|
|
1,476 |
|
|
|
1,240 |
|
|
|
1,728 |
|
|
|
3,239 |
|
|
2,595 |
|
|
|
5,021 |
|
Consumer and other |
|
|
23 |
|
|
|
49 |
|
|
|
26 |
|
|
|
92 |
|
|
|
34 |
|
|
72 |
|
|
|
66 |
|
Total recoveries |
|
|
2,820 |
|
|
|
2,193 |
|
|
|
2,418 |
|
|
|
3,327 |
|
|
|
5,053 |
|
|
5,013 |
|
|
|
7,824 |
|
Net charge-offs |
|
|
(9,496 |
) |
|
|
(2,532 |
) |
|
|
(6,181 |
) |
|
|
(2 |
) |
|
|
(1,922 |
) |
|
(12,028 |
) |
|
|
(15,267 |
) |
Allowance for credit losses at period end |
|
$ |
312,192 |
|
|
$ |
301,327 |
|
|
$ |
299,731 |
|
|
$ |
296,138 |
|
|
$ |
304,121 |
|
$ |
312,192 |
|
|
$ |
304,121 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Annualized net charge-offs (recoveries) by category as a
percentage of its own respective
category’s average: |
|
|
|
Commercial |
|
|
0.27 |
% |
|
|
0.03 |
% |
|
|
0.14 |
% |
|
|
0.02 |
% |
|
|
0.08 |
% |
|
0.15 |
% |
|
|
0.22 |
% |
Commercial real estate |
|
|
(0.02 |
) |
|
|
0.03 |
|
|
|
0.01 |
|
|
|
0.00 |
|
|
|
0.04 |
|
|
0.01 |
|
|
|
0.04 |
|
Home equity |
|
|
0.09 |
|
|
|
0.13 |
|
|
|
(0.38 |
) |
|
|
(0.28 |
) |
|
|
(0.20 |
) |
|
0.11 |
|
|
|
(0.15 |
) |
Residential real estate |
|
|
0.00 |
|
|
|
0.11 |
|
|
|
0.25 |
|
|
|
0.00 |
|
|
|
(0.01 |
) |
|
0.05 |
|
|
|
(0.03 |
) |
Premium finance receivables |
|
|
0.06 |
|
|
|
0.01 |
|
|
|
0.04 |
|
|
|
(0.01 |
) |
|
|
(0.04 |
) |
|
0.03 |
|
|
|
0.01 |
|
Consumer and other |
|
|
1.31 |
|
|
|
1.19 |
|
|
|
0.95 |
|
|
|
0.26 |
|
|
|
0.69 |
|
|
1.26 |
% |
|
|
0.62 |
|
Total loans, net of unearned income |
|
|
0.11 |
% |
|
|
0.03 |
% |
|
|
0.07 |
% |
|
|
0.00 |
% |
|
|
0.02 |
% |
|
0.07 |
% |
|
|
0.09 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans at period end |
|
$ |
37,053,103 |
|
|
$ |
35,280,547 |
|
|
$ |
34,789,104 |
|
|
$ |
33,264,043 |
|
|
$ |
32,911,187 |
|
|
|
|
Allowance for loan losses as a percentage of loans at
period end |
|
|
0.68 |
% |
|
|
0.71 |
% |
|
|
0.71 |
% |
|
|
0.75 |
% |
|
|
0.79 |
% |
|
|
|
Allowance for loan and unfunded lending-related commitment
losses as a percentage of loans at period end |
|
|
0.84 |
|
|
|
0.85 |
|
|
|
0.86 |
|
|
|
0.89 |
|
|
|
0.92 |
|
|
|
|
Allowance for loan and unfunded lending-related commitment
losses as a percentage of loans at period end, excluding PPP
loans |
|
|
0.84 |
|
|
|
0.86 |
|
|
|
0.88 |
|
|
|
0.92 |
|
|
|
0.98 |
|
|
|
|
(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 |
Six Months Ended |
|
|
Jun 30, |
|
Mar 31, |
|
Dec 31, |
|
Sep 30, |
|
Jun 30, |
Jun 30, |
|
Jun 30, |
(In thousands) |
|
|
2022 |
|
|
|
2022 |
|
|
|
2021 |
|
|
|
2021 |
|
|
|
2021 |
|
|
2022 |
|
|
2021 |
|
Provision for loan losses |
|
$ |
10,782 |
|
|
$ |
5,214 |
|
|
$ |
4,929 |
|
|
$ |
(12,410 |
) |
|
$ |
(14,731 |
) |
$ |
15,996 |
|
$ |
(43,082 |
) |
Provision for unfunded lending-related commitments losses |
|
|
9,711 |
|
|
|
(1,189 |
) |
|
|
4,375 |
|
|
|
4,501 |
|
|
|
(558 |
) |
|
8,522 |
|
|
(17,593 |
) |
Provision for held-to-maturity securities losses |
|
|
(76 |
) |
|
|
81 |
|
|
|
(5 |
) |
|
|
(7 |
) |
|
|
(10 |
) |
|
5 |
|
|
29 |
|
Provision for credit losses |
|
$ |
20,417 |
|
|
$ |
4,106 |
|
|
$ |
9,299 |
|
|
$ |
(7,916 |
) |
|
$ |
(15,299 |
) |
$ |
24,523 |
|
$ |
(60,646 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Allowance for loan losses |
|
$ |
251,769 |
|
|
$ |
250,539 |
|
|
$ |
247,835 |
|
|
$ |
248,612 |
|
|
$ |
261,089 |
|
|
|
|
Allowance for unfunded lending-related commitments losses |
|
|
60,340 |
|
|
|
50,629 |
|
|
|
51,818 |
|
|
|
47,443 |
|
|
|
42,942 |
|
|
|
|
Allowance for loan losses and unfunded lending-related commitments
losses |
|
|
312,109 |
|
|
|
301,168 |
|
|
|
299,653 |
|
|
|
296,055 |
|
|
|
304,031 |
|
|
|
|
Allowance for held-to-maturity securities losses |
|
|
83 |
|
|
|
159 |
|
|
|
78 |
|
|
|
83 |
|
|
|
90 |
|
|
|
|
Allowance for credit losses |
|
$ |
312,192 |
|
|
$ |
301,327 |
|
|
$ |
299,731 |
|
|
$ |
296,138 |
|
|
$ |
304,121 |
|
|
|
|
TABLE 12: ALLOWANCE BY LOAN
PORTFOLIO
The table below summarizes the calculation of
allowance for loan losses and allowance for unfunded
lending-related commitments losses for the Company’s loan
portfolios as well as core and niche portfolios, as of
June 30, 2022, March 31, 2022 and December 31,
2021.
|
As of Jun 30, 2022 |
As of Mar 31, 2022 |
As of Dec 31, 2021 |
(Dollars in thousands) |
Recorded
Investment |
|
Calculated
Allowance |
|
% of its
category’s balance |
Recorded
Investment |
|
Calculated
Allowance |
|
% of its
category’s balance |
Recorded
Investment |
|
Calculated
Allowance |
|
% of its
category’s balance |
Commercial: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial, industrial and other, excluding PPP loans |
$ |
11,965,016 |
|
$ |
142,916 |
|
1.19 |
% |
$ |
11,329,999 |
|
$ |
120,910 |
|
1.07 |
% |
$ |
11,345,785 |
|
$ |
119,305 |
|
1.05 |
% |
Commercial PPP loans |
|
82,089 |
|
|
3 |
|
0.00 |
|
|
253,964 |
|
|
1 |
|
0.00 |
|
|
558,283 |
|
|
2 |
|
0.00 |
|
Commercial real estate: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Construction and development |
|
1,506,318 |
|
|
45,522 |
|
3.02 |
|
|
1,396,406 |
|
|
34,206 |
|
2.45 |
|
|
1,356,204 |
|
|
35,206 |
|
2.60 |
|
Non-construction |
|
7,900,887 |
|
|
98,210 |
|
1.24 |
|
|
7,838,668 |
|
|
110,700 |
|
1.41 |
|
|
7,634,082 |
|
|
109,377 |
|
1.43 |
|
Home
equity |
|
325,826 |
|
|
6,990 |
|
2.15 |
|
|
321,435 |
|
|
10,566 |
|
3.29 |
|
|
335,155 |
|
|
10,699 |
|
3.19 |
|
Residential real estate |
|
2,078,907 |
|
|
10,479 |
|
0.50 |
|
|
1,799,985 |
|
|
9,429 |
|
0.52 |
|
|
1,637,099 |
|
|
8,782 |
|
0.54 |
|
Premium finance receivables |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial insurance loans |
|
5,541,447 |
|
|
6,840 |
|
0.12 |
|
|
4,937,408 |
|
|
14,082 |
|
0.29 |
|
|
4,855,487 |
|
|
15,246 |
|
0.31 |
|
Life insurance loans |
|
7,608,433 |
|
|
662 |
|
0.01 |
|
|
7,354,163 |
|
|
640 |
|
0.01 |
|
|
7,042,810 |
|
|
613 |
|
0.01 |
|
Consumer
and other |
|
44,180 |
|
|
487 |
|
1.10 |
|
|
48,519 |
|
|
634 |
|
1.31 |
|
|
24,199 |
|
|
423 |
|
1.75 |
|
Total loans, net of unearned income |
$ |
37,053,103 |
|
$ |
312,109 |
|
0.84 |
% |
$ |
35,280,547 |
|
$ |
301,168 |
|
0.85 |
% |
$ |
34,789,104 |
|
$ |
299,653 |
|
0.86 |
% |
Total loans, net of unearned income, excluding PPP
loans |
$ |
36,971,014 |
|
$ |
312,106 |
|
0.84 |
% |
$ |
35,026,583 |
|
$ |
301,167 |
|
0.86 |
% |
$ |
34,230,821 |
|
$ |
299,651 |
|
0.88 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total core loans(1) |
$ |
20,994,470 |
|
$ |
275,188 |
|
1.31 |
% |
$ |
20,084,782 |
|
$ |
262,447 |
|
1.31 |
% |
$ |
19,599,090 |
|
$ |
260,511 |
|
1.33 |
% |
Total niche loans(1) |
|
15,976,544 |
|
|
36,918 |
|
0.23 |
|
|
14,941,801 |
|
|
38,720 |
|
0.26 |
|
|
14,631,731 |
|
|
39,140 |
|
0.27 |
|
Total PPP loans |
|
82,089 |
|
|
3 |
|
0.00 |
|
|
253,964 |
|
|
1 |
|
0.00 |
|
|
558,283 |
|
|
2 |
|
0.00 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) |
See Table 1 for additional detail on core and niche
loans. |
TABLE 13: LOAN PORTFOLIO
AGING
(In thousands) |
|
Jun 30, 2022 |
|
Mar 31, 2022 |
|
Dec 31, 2021 |
|
Sep 30, 2021 |
|
Jun 30, 2021 |
Loan Balances: |
|
|
|
|
|
|
|
|
|
|
Commercial |
|
|
|
|
|
|
|
|
|
|
Nonaccrual |
|
$ |
32,436 |
|
$ |
16,878 |
|
$ |
20,399 |
|
$ |
26,468 |
|
$ |
23,232 |
90+ days and still accruing |
|
|
— |
|
|
— |
|
|
15 |
|
|
— |
|
|
1,244 |
60-89 days past due |
|
|
16,789 |
|
|
1,294 |
|
|
24,262 |
|
|
9,768 |
|
|
5,204 |
30-59 days past due |
|
|
14,120 |
|
|
31,889 |
|
|
43,861 |
|
|
25,224 |
|
|
18,478 |
Current |
|
|
11,983,760 |
|
|
11,533,902 |
|
|
11,815,531 |
|
|
11,126,512 |
|
|
11,394,118 |
Total commercial |
|
$ |
12,047,105 |
|
$ |
11,583,963 |
|
$ |
11,904,068 |
|
$ |
11,187,972 |
|
$ |
11,442,276 |
Commercial real estate |
|
|
|
|
|
|
|
|
|
|
Nonaccrual |
|
$ |
10,718 |
|
$ |
12,301 |
|
$ |
21,746 |
|
$ |
23,706 |
|
$ |
26,035 |
90+ days and still accruing |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
60-89 days past due |
|
|
6,771 |
|
|
2,648 |
|
|
284 |
|
|
5,395 |
|
|
4,382 |
30-59 days past due |
|
|
34,220 |
|
|
30,141 |
|
|
40,443 |
|
|
79,818 |
|
|
19,698 |
Current |
|
|
9,355,496 |
|
|
9,189,984 |
|
|
8,927,813 |
|
|
8,776,795 |
|
|
8,628,254 |
Total commercial real estate |
|
$ |
9,407,205 |
|
$ |
9,235,074 |
|
$ |
8,990,286 |
|
$ |
8,885,714 |
|
$ |
8,678,369 |
Home equity |
|
|
|
|
|
|
|
|
|
|
Nonaccrual |
|
$ |
1,084 |
|
$ |
1,747 |
|
$ |
2,574 |
|
$ |
3,449 |
|
$ |
3,478 |
90+ days and still accruing |
|
|
— |
|
|
— |
|
|
— |
|
|
164 |
|
|
— |
60-89 days past due |
|
|
154 |
|
|
199 |
|
|
— |
|
|
340 |
|
|
301 |
30-59 days past due |
|
|
930 |
|
|
545 |
|
|
1,120 |
|
|
867 |
|
|
777 |
Current |
|
|
323,658 |
|
|
318,944 |
|
|
331,461 |
|
|
342,842 |
|
|
365,250 |
Total home equity |
|
$ |
325,826 |
|
$ |
321,435 |
|
$ |
335,155 |
|
$ |
347,662 |
|
$ |
369,806 |
Residential real estate |
|
|
|
|
|
|
|
|
|
|
Early buy-out loans guaranteed by U.S. government
agencies(1) |
|
$ |
113,856 |
|
$ |
50,096 |
|
|
30,828 |
|
$ |
26,986 |
|
$ |
50,778 |
Nonaccrual |
|
|
8,330 |
|
|
7,262 |
|
|
16,440 |
|
|
22,633 |
|
|
23,050 |
90+ days and still accruing |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
60-89 days past due |
|
|
534 |
|
|
293 |
|
|
982 |
|
|
1,540 |
|
|
1,584 |
30-59 days past due |
|
|
147 |
|
|
18,808 |
|
|
12,145 |
|
|
1,076 |
|
|
2,139 |
Current |
|
|
1,956,040 |
|
|
1,723,526 |
|
|
1,576,704 |
|
|
1,495,501 |
|
|
1,452,734 |
Total residential real estate |
|
$ |
2,078,907 |
|
$ |
1,799,985 |
|
$ |
1,637,099 |
|
$ |
1,547,736 |
|
$ |
1,530,285 |
Premium finance receivables |
|
|
|
|
|
|
|
|
|
|
Nonaccrual |
|
$ |
13,303 |
|
$ |
6,707 |
|
$ |
5,433 |
|
$ |
7,300 |
|
$ |
6,418 |
90+ days and still accruing |
|
|
6,447 |
|
|
12,363 |
|
|
7,217 |
|
|
5,811 |
|
|
3,570 |
60-89 days past due |
|
|
17,095 |
|
|
31,291 |
|
|
28,104 |
|
|
15,804 |
|
|
7,759 |
30-59 days past due |
|
|
88,468 |
|
|
36,800 |
|
|
89,070 |
|
|
21,654 |
|
|
32,758 |
Current |
|
|
13,024,567 |
|
|
12,204,410 |
|
|
11,768,473 |
|
|
11,221,861 |
|
|
10,830,922 |
Total premium finance receivables |
|
$ |
13,149,880 |
|
$ |
12,291,571 |
|
$ |
11,898,297 |
|
$ |
11,272,430 |
|
$ |
10,881,427 |
Consumer and other |
|
|
|
|
|
|
|
|
|
|
Nonaccrual |
|
$ |
8 |
|
$ |
4 |
|
$ |
477 |
|
$ |
384 |
|
$ |
485 |
90+ days and still accruing |
|
|
25 |
|
|
43 |
|
|
137 |
|
|
126 |
|
|
178 |
60-89 days past due |
|
|
8 |
|
|
5 |
|
|
34 |
|
|
16 |
|
|
22 |
30-59 days past due |
|
|
119 |
|
|
221 |
|
|
509 |
|
|
125 |
|
|
75 |
Current |
|
|
44,020 |
|
|
48,246 |
|
|
23,042 |
|
|
21,878 |
|
|
8,264 |
Total consumer and other |
|
$ |
44,180 |
|
$ |
48,519 |
|
$ |
24,199 |
|
$ |
22,529 |
|
$ |
9,024 |
Total loans, net of unearned income |
|
|
|
|
|
|
|
|
|
|
Early buy-out loans guaranteed by U.S. government
agencies(1) |
|
$ |
113,856 |
|
$ |
50,096 |
|
$ |
30,828 |
|
$ |
26,986 |
|
$ |
50,778 |
Nonaccrual |
|
|
65,879 |
|
|
44,899 |
|
|
67,069 |
|
|
83,940 |
|
|
82,698 |
90+ days and still accruing |
|
|
6,472 |
|
|
12,406 |
|
|
7,369 |
|
|
6,101 |
|
|
4,992 |
60-89 days past due |
|
|
41,351 |
|
|
35,730 |
|
|
53,666 |
|
|
32,863 |
|
|
19,252 |
30-59 days past due |
|
|
138,004 |
|
|
118,404 |
|
|
187,148 |
|
|
128,764 |
|
|
73,925 |
Current |
|
|
36,687,541 |
|
|
35,019,012 |
|
|
34,443,024 |
|
|
32,985,389 |
|
|
32,679,542 |
Total loans, net of unearned income |
|
$ |
37,053,103 |
|
$ |
35,280,547 |
|
$ |
34,789,104 |
|
$ |
33,264,043 |
|
$ |
32,911,187 |
(1) |
Early buy-out loans are insured or guaranteed by the Federal
Housing Administration or the U.S. Department of Veterans Affairs,
subject to indemnifications and insurance limits for certain
loans. |
TABLE 14: NON-PERFORMING
ASSETS(1) AND TROUBLED
DEBT RESTRUCTURINGS (“TDRs”)
|
Jun 30, |
|
Mar 31, |
|
Dec 31, |
|
Sep 30, |
|
Jun 30, |
(Dollars in thousands) |
|
2022 |
|
|
|
2022 |
|
|
|
2021 |
|
|
|
2021 |
|
|
|
2021 |
|
Loans past due greater than 90 days and still
accruing(2): |
|
|
|
|
|
|
|
|
|
Commercial |
$ |
— |
|
|
$ |
— |
|
|
$ |
15 |
|
|
$ |
— |
|
|
$ |
1,244 |
|
Commercial real estate |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Home
equity |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
164 |
|
|
|
— |
|
Residential real estate |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Premium
finance receivables |
|
6,447 |
|
|
|
12,363 |
|
|
|
7,217 |
|
|
|
5,811 |
|
|
|
3,570 |
|
Consumer
and other |
|
25 |
|
|
|
43 |
|
|
|
137 |
|
|
|
126 |
|
|
|
178 |
|
Total loans past due greater than 90 days and still accruing |
|
6,472 |
|
|
|
12,406 |
|
|
|
7,369 |
|
|
|
6,101 |
|
|
|
4,992 |
|
Non-accrual loans: |
|
|
|
|
|
|
|
|
|
Commercial |
|
32,436 |
|
|
|
16,878 |
|
|
|
20,399 |
|
|
|
26,468 |
|
|
|
23,232 |
|
Commercial real estate |
|
10,718 |
|
|
|
12,301 |
|
|
|
21,746 |
|
|
|
23,706 |
|
|
|
26,035 |
|
Home
equity |
|
1,084 |
|
|
|
1,747 |
|
|
|
2,574 |
|
|
|
3,449 |
|
|
|
3,478 |
|
Residential real estate |
|
8,330 |
|
|
|
7,262 |
|
|
|
16,440 |
|
|
|
22,633 |
|
|
|
23,050 |
|
Premium
finance receivables |
|
13,303 |
|
|
|
6,707 |
|
|
|
5,433 |
|
|
|
7,300 |
|
|
|
6,418 |
|
Consumer
and other |
|
8 |
|
|
|
4 |
|
|
|
477 |
|
|
|
384 |
|
|
|
485 |
|
Total non-accrual loans |
|
65,879 |
|
|
|
44,899 |
|
|
|
67,069 |
|
|
|
83,940 |
|
|
|
82,698 |
|
Total non-performing loans: |
|
|
|
|
|
|
|
|
|
Commercial |
|
32,436 |
|
|
|
16,878 |
|
|
|
20,414 |
|
|
|
26,468 |
|
|
|
24,476 |
|
Commercial real estate |
|
10,718 |
|
|
|
12,301 |
|
|
|
21,746 |
|
|
|
23,706 |
|
|
|
26,035 |
|
Home
equity |
|
1,084 |
|
|
|
1,747 |
|
|
|
2,574 |
|
|
|
3,613 |
|
|
|
3,478 |
|
Residential real estate |
|
8,330 |
|
|
|
7,262 |
|
|
|
16,440 |
|
|
|
22,633 |
|
|
|
23,050 |
|
Premium
finance receivables |
|
19,750 |
|
|
|
19,070 |
|
|
|
12,650 |
|
|
|
13,111 |
|
|
|
9,988 |
|
Consumer
and other |
|
33 |
|
|
|
47 |
|
|
|
614 |
|
|
|
510 |
|
|
|
663 |
|
Total non-performing loans |
$ |
72,351 |
|
|
$ |
57,305 |
|
|
$ |
74,438 |
|
|
$ |
90,041 |
|
|
$ |
87,690 |
|
Other
real estate owned |
|
5,574 |
|
|
|
4,978 |
|
|
|
1,959 |
|
|
|
9,934 |
|
|
|
10,510 |
|
Other
real estate owned - from acquisitions |
|
1,265 |
|
|
|
1,225 |
|
|
|
2,312 |
|
|
|
3,911 |
|
|
|
5,062 |
|
Other
repossessed assets |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Total non-performing assets |
$ |
79,190 |
|
|
$ |
63,508 |
|
|
$ |
78,709 |
|
|
$ |
103,886 |
|
|
$ |
103,262 |
|
Accruing
TDRs not included within non-performing assets |
$ |
36,184 |
|
|
$ |
35,922 |
|
|
$ |
37,486 |
|
|
$ |
38,468 |
|
|
$ |
44,019 |
|
Total non-performing loans by category as a percent of its
own respective category’s period-end balance: |
|
|
|
|
|
|
|
|
|
Commercial |
|
0.27 |
% |
|
|
0.15 |
% |
|
|
0.17 |
% |
|
|
0.24 |
% |
|
|
0.21 |
% |
Commercial real estate |
|
0.11 |
|
|
|
0.13 |
|
|
|
0.24 |
|
|
|
0.27 |
|
|
|
0.30 |
|
Home
equity |
|
0.33 |
|
|
|
0.54 |
|
|
|
0.77 |
|
|
|
1.04 |
|
|
|
0.94 |
|
Residential real estate |
|
0.40 |
|
|
|
0.40 |
|
|
|
1.00 |
|
|
|
1.46 |
|
|
|
1.51 |
|
Premium
finance receivables |
|
0.15 |
|
|
|
0.16 |
|
|
|
0.11 |
|
|
|
0.12 |
|
|
|
0.09 |
|
Consumer
and other |
|
0.07 |
|
|
|
0.10 |
|
|
|
2.54 |
|
|
|
2.26 |
|
|
|
7.35 |
|
Total loans, net of unearned income |
|
0.20 |
% |
|
|
0.16 |
% |
|
|
0.21 |
% |
|
|
0.27 |
% |
|
|
0.27 |
% |
Total non-performing assets as a percentage of total
assets |
|
0.16 |
% |
|
|
0.13 |
% |
|
|
0.16 |
% |
|
|
0.22 |
% |
|
|
0.22 |
% |
Allowance for loan losses and unfunded lending-related
commitments losses as a percentage of non-accrual
loans |
|
473.76 |
% |
|
|
670.77 |
% |
|
|
446.78 |
% |
|
|
352.70 |
% |
|
|
367.64 |
% |
|
|
|
|
|
|
|
|
|
|
(1) |
Excludes early buy-out loans guaranteed by U.S. government
agencies. Early buy-out loans are insured or guaranteed by the
Federal Housing Administration or the U.S. Department of Veterans
Affairs, subject to indemnifications and insurance limits for
certain loans. |
(2) |
As of June 30, 2022, March 31, 2022,
December 31, 2021, September 30, 2021, and June 30,
2021, approximately $541,000, $320,000, $320,000, $445,000 and
$320,000, respectively, of TDRs were past due greater than 90 days
and still accruing interest. |
Non-performing Loans Rollforward, excluding
early buy-out loans guaranteed by U.S. government agencies
|
Three Months Ended |
Six Months Ended |
|
Jun 30, |
|
Mar 31, |
|
Dec 31, |
|
Sep 30, |
|
Jun 30, |
Jun 30, |
|
Jun 30, |
(In thousands) |
|
2022 |
|
|
|
2022 |
|
|
|
2021 |
|
|
|
2021 |
|
|
|
2021 |
|
|
2022 |
|
|
|
2021 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance at beginning of period |
$ |
57,305 |
|
|
$ |
74,438 |
|
|
$ |
90,041 |
|
|
$ |
87,690 |
|
|
$ |
99,059 |
|
$ |
74,438 |
|
|
$ |
127,513 |
|
Additions from becoming non-performing in the respective
period |
|
22,841 |
|
|
|
4,141 |
|
|
|
6,851 |
|
|
|
9,341 |
|
|
|
12,762 |
|
|
26,982 |
|
|
|
22,656 |
|
Return to performing status |
|
(1,000 |
) |
|
|
(729 |
) |
|
|
(6,616 |
) |
|
|
(3,322 |
) |
|
|
— |
|
|
(1,729 |
) |
|
|
(654 |
) |
Payments received |
|
(4,029 |
) |
|
|
(20,139 |
) |
|
|
(13,212 |
) |
|
|
(5,568 |
) |
|
|
(12,312 |
) |
|
(24,168 |
) |
|
|
(35,043 |
) |
Transfer to OREO and other repossessed assets |
|
(1,611 |
) |
|
|
(4,377 |
) |
|
|
(275 |
) |
|
|
(720 |
) |
|
|
(3,660 |
) |
|
(5,988 |
) |
|
|
(5,032 |
) |
Charge-offs, net |
|
(1,969 |
) |
|
|
(2,354 |
) |
|
|
(5,167 |
) |
|
|
(548 |
) |
|
|
(4,684 |
) |
|
(4,323 |
) |
|
|
(7,636 |
) |
Net change for niche loans(1) |
|
814 |
|
|
|
6,325 |
|
|
|
2,816 |
|
|
|
3,168 |
|
|
|
(3,475 |
) |
|
7,139 |
|
|
|
(14,114 |
) |
Balance at end of period |
$ |
72,351 |
|
|
$ |
57,305 |
|
|
$ |
74,438 |
|
|
$ |
90,041 |
|
|
$ |
87,690 |
|
$ |
72,351 |
|
|
$ |
87,690 |
|
(1) |
This includes activity for premium finance receivables and
indirect consumer loans. |
TDRs
|
Jun 30, |
|
Mar 31, |
|
Dec 31, |
|
Sep 30, |
|
Jun 30, |
(In
thousands) |
2022 |
|
2022 |
|
2021 |
|
2021 |
|
2021 |
Accruing TDRs: |
|
|
|
|
|
|
|
|
|
Commercial |
$ |
2,456 |
|
$ |
2,773 |
|
$ |
4,131 |
|
$ |
4,532 |
|
$ |
6,911 |
Commercial real estate |
|
9,659 |
|
|
10,068 |
|
|
8,421 |
|
|
8,385 |
|
|
9,659 |
Residential real estate and other |
|
24,069 |
|
|
23,081 |
|
|
24,934 |
|
|
25,551 |
|
|
27,449 |
Total accrual |
$ |
36,184 |
|
$ |
35,922 |
|
$ |
37,486 |
|
$ |
38,468 |
|
$ |
44,019 |
Non-accrual
TDRs:(1) |
|
|
|
|
|
|
|
|
|
Commercial |
$ |
4,786 |
|
$ |
4,935 |
|
$ |
6,746 |
|
$ |
3,079 |
|
$ |
4,104 |
Commercial real estate |
|
1,955 |
|
|
2,050 |
|
|
2,050 |
|
|
3,239 |
|
|
3,434 |
Residential real estate and other |
|
2,453 |
|
|
1,964 |
|
|
3,027 |
|
|
3,685 |
|
|
4,190 |
Total non-accrual |
$ |
9,194 |
|
$ |
8,949 |
|
$ |
11,823 |
|
$ |
10,003 |
|
$ |
11,728 |
Total TDRs: |
|
|
|
|
|
|
|
|
|
Commercial |
$ |
7,242 |
|
$ |
7,708 |
|
$ |
10,877 |
|
$ |
7,611 |
|
$ |
11,015 |
Commercial real estate |
|
11,614 |
|
|
12,118 |
|
|
10,471 |
|
|
11,624 |
|
|
13,093 |
Residential real estate and other |
|
26,522 |
|
|
25,045 |
|
|
27,961 |
|
|
29,236 |
|
|
31,639 |
Total TDRs |
$ |
45,378 |
|
$ |
44,871 |
|
$ |
49,309 |
|
$ |
48,471 |
|
$ |
55,747 |
(1) |
Included in total non-performing loans. |
Other Real Estate Owned
|
Three Months Ended |
|
Jun 30, |
|
Mar 31, |
|
Dec 31, |
|
Sep 30, |
|
Jun 30, |
(In thousands) |
|
2022 |
|
|
|
2022 |
|
|
|
2021 |
|
|
|
2021 |
|
|
|
2021 |
|
Balance at beginning of period |
$ |
6,203 |
|
|
$ |
4,271 |
|
|
$ |
13,845 |
|
|
$ |
15,572 |
|
|
$ |
15,813 |
|
Disposals/resolved |
|
(1,172 |
) |
|
|
(2,497 |
) |
|
|
(9,664 |
) |
|
|
(1,949 |
) |
|
|
(3,152 |
) |
Transfers in at fair value, less costs to sell |
|
2,090 |
|
|
|
4,429 |
|
|
|
275 |
|
|
|
315 |
|
|
|
3,660 |
|
Fair value adjustments |
|
(282 |
) |
|
|
— |
|
|
|
(185 |
) |
|
|
(93 |
) |
|
|
(749 |
) |
Balance at end of period |
$ |
6,839 |
|
|
$ |
6,203 |
|
|
$ |
4,271 |
|
|
$ |
13,845 |
|
|
$ |
15,572 |
|
|
|
|
|
|
|
|
|
|
|
|
Period End |
|
Jun 30, |
|
Mar 31, |
|
Dec 31, |
|
Sep 30, |
|
Jun 30, |
Balance by Property Type: |
|
2022 |
|
|
|
2022 |
|
|
|
2021 |
|
|
|
2021 |
|
|
|
2021 |
|
Residential real estate |
$ |
1,630 |
|
|
$ |
1,127 |
|
|
$ |
1,310 |
|
|
$ |
1,592 |
|
|
$ |
1,952 |
|
Residential real estate development |
|
133 |
|
|
|
— |
|
|
|
— |
|
|
|
934 |
|
|
|
1,030 |
|
Commercial real estate |
|
5,076 |
|
|
|
5,076 |
|
|
|
2,961 |
|
|
|
11,319 |
|
|
|
12,590 |
|
Total |
$ |
6,839 |
|
|
$ |
6,203 |
|
|
$ |
4,271 |
|
|
$ |
13,845 |
|
|
$ |
15,572 |
|
TABLE 15: NON-INTEREST INCOME
|
Three Months Ended |
|
Q2 2022 compared to
Q1 2022 |
|
Q2 2022 compared to
Q2 2021 |
|
Jun 30, |
|
Mar 31, |
|
Dec 31, |
|
Sep 30, |
|
Jun 30, |
|
|
(Dollars in thousands) |
|
2022 |
|
|
|
2022 |
|
|
|
2021 |
|
|
|
2021 |
|
|
|
2021 |
|
|
$ Change |
|
% Change |
|
$ Change |
|
% Change |
Brokerage |
$ |
4,272 |
|
|
$ |
4,632 |
|
|
$ |
5,292 |
|
|
$ |
5,230 |
|
|
$ |
5,148 |
|
|
$ |
(360 |
) |
|
(8) |
% |
|
$ |
(876 |
) |
|
(17) |
% |
Trust and asset management |
|
27,097 |
|
|
|
26,762 |
|
|
|
27,197 |
|
|
|
26,301 |
|
|
|
25,542 |
|
|
|
335 |
|
|
1 |
|
|
|
1,555 |
|
|
6 |
|
Total wealth management |
|
31,369 |
|
|
|
31,394 |
|
|
|
32,489 |
|
|
|
31,531 |
|
|
|
30,690 |
|
|
|
(25 |
) |
|
— |
|
|
|
679 |
|
|
2 |
|
Mortgage banking |
|
33,314 |
|
|
|
77,231 |
|
|
|
53,138 |
|
|
|
55,794 |
|
|
|
50,584 |
|
|
|
(43,917 |
) |
|
(57 |
) |
|
|
(17,270 |
) |
|
(34 |
) |
Service charges on deposit accounts |
|
15,888 |
|
|
|
15,283 |
|
|
|
14,734 |
|
|
|
14,149 |
|
|
|
13,249 |
|
|
|
605 |
|
|
4 |
|
|
|
2,639 |
|
|
20 |
|
(Losses) gains on investment securities, net |
|
(7,797 |
) |
|
|
(2,782 |
) |
|
|
(1,067 |
) |
|
|
(2,431 |
) |
|
|
1,285 |
|
|
|
(5,015 |
) |
|
NM |
|
|
(9,082 |
) |
|
NM |
Fees from covered call options |
|
1,069 |
|
|
|
3,742 |
|
|
|
1,128 |
|
|
|
1,157 |
|
|
|
1,388 |
|
|
|
(2,673 |
) |
|
(71 |
) |
|
|
(319 |
) |
|
(23 |
) |
Trading gains (losses), net |
|
176 |
|
|
|
3,889 |
|
|
|
206 |
|
|
|
58 |
|
|
|
(438 |
) |
|
|
(3,713 |
) |
|
(95 |
) |
|
|
614 |
|
|
NM |
Operating lease income, net |
|
15,007 |
|
|
|
15,475 |
|
|
|
14,204 |
|
|
|
12,807 |
|
|
|
12,240 |
|
|
|
(468 |
) |
|
(3 |
) |
|
|
2,767 |
|
|
23 |
|
Other: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest rate swap fees |
|
3,300 |
|
|
|
4,569 |
|
|
|
3,526 |
|
|
|
4,868 |
|
|
|
2,820 |
|
|
|
(1,269 |
) |
|
(28 |
) |
|
|
480 |
|
|
17 |
|
BOLI |
|
(884 |
) |
|
|
48 |
|
|
|
1,192 |
|
|
|
2,154 |
|
|
|
1,342 |
|
|
|
(932 |
) |
|
NM |
|
|
(2,226 |
) |
|
NM |
Administrative services |
|
1,591 |
|
|
|
1,853 |
|
|
|
1,846 |
|
|
|
1,359 |
|
|
|
1,228 |
|
|
|
(262 |
) |
|
(14 |
) |
|
|
363 |
|
|
30 |
|
Foreign currency remeasurement gains (losses) |
|
97 |
|
|
|
11 |
|
|
|
111 |
|
|
|
77 |
|
|
|
(782 |
) |
|
|
86 |
|
|
NM |
|
|
879 |
|
|
NM |
Early pay-offs of capital leases |
|
160 |
|
|
|
265 |
|
|
|
249 |
|
|
|
209 |
|
|
|
195 |
|
|
|
(105 |
) |
|
(40 |
) |
|
|
(35 |
) |
|
(18 |
) |
Miscellaneous |
|
9,652 |
|
|
|
11,812 |
|
|
|
12,011 |
|
|
|
14,742 |
|
|
|
15,572 |
|
|
|
(2,160 |
) |
|
(18 |
) |
|
|
(5,920 |
) |
|
(38 |
) |
Total Other |
|
13,916 |
|
|
|
18,558 |
|
|
|
18,935 |
|
|
|
23,409 |
|
|
|
20,375 |
|
|
|
(4,642 |
) |
|
(25 |
) |
|
|
(6,459 |
) |
|
(32 |
) |
Total Non-Interest Income |
$ |
102,942 |
|
|
$ |
162,790 |
|
|
$ |
133,767 |
|
|
$ |
136,474 |
|
|
$ |
129,373 |
|
|
$ |
(59,848 |
) |
|
(37) |
% |
|
$ |
(26,431 |
) |
|
(20) |
% |
NM - Not meaningful.
|
Six Months Ended |
|
|
|
|
|
Jun 30, |
|
Jun 30, |
|
$ |
|
% |
(Dollars in thousands) |
|
2022 |
|
|
|
2021 |
|
|
Change |
|
Change |
Brokerage |
$ |
8,904 |
|
|
$ |
10,188 |
|
|
$ |
(1,284 |
) |
|
(13) |
% |
Trust and asset management |
|
53,859 |
|
|
|
49,811 |
|
|
|
4,048 |
|
|
8 |
|
Total wealth management |
|
62,763 |
|
|
|
59,999 |
|
|
|
2,764 |
|
|
5 |
|
Mortgage banking |
|
110,545 |
|
|
|
164,078 |
|
|
|
(53,533 |
) |
|
(33 |
) |
Service charges on deposit accounts |
|
31,171 |
|
|
|
25,285 |
|
|
|
5,886 |
|
|
23 |
|
(Losses) gains on investment securities, net |
|
(10,579 |
) |
|
|
2,439 |
|
|
|
(13,018 |
) |
|
NM |
Fees from covered call options |
|
4,811 |
|
|
|
1,388 |
|
|
|
3,423 |
|
|
NM |
Trading gains (losses), net |
|
4,065 |
|
|
|
(19 |
) |
|
|
4,084 |
|
|
NM |
Operating lease income, net |
|
30,482 |
|
|
|
26,680 |
|
|
|
3,802 |
|
|
14 |
|
Other: |
|
|
|
|
|
|
|
Interest rate swap fees |
|
7,869 |
|
|
|
5,308 |
|
|
|
2,561 |
|
|
48 |
|
BOLI |
|
(836 |
) |
|
|
2,466 |
|
|
|
(3,302 |
) |
|
NM |
Administrative services |
|
3,444 |
|
|
|
2,484 |
|
|
|
960 |
|
|
39 |
|
Foreign currency remeasurement gains (losses) |
|
108 |
|
|
|
(683 |
) |
|
|
791 |
|
|
NM |
Early pay-offs of leases |
|
425 |
|
|
|
143 |
|
|
|
282 |
|
|
NM |
Miscellaneous |
|
21,464 |
|
|
|
26,311 |
|
|
|
(4,847 |
) |
|
(18 |
) |
Total Other |
|
32,474 |
|
|
|
36,029 |
|
|
|
(3,555 |
) |
|
(10 |
) |
Total Non-Interest Income |
$ |
265,732 |
|
|
$ |
315,879 |
|
|
$ |
(50,147 |
) |
|
(16) |
% |
NM - Not meaningful.
TABLE 16: MORTGAGE BANKING
|
Three Months Ended |
Six Months Ended |
(Dollars in thousands) |
Jun 30,
2022 |
|
Mar 31,
2022 |
|
Dec 31,
2021 |
|
Sep 30,
2021 |
|
Jun 30,
2021 |
Jun 30,
2022 |
|
Jun 30,
2021 |
Originations: |
|
|
|
|
|
|
|
|
|
|
|
|
Retail originations |
$ |
595,601 |
|
|
$ |
647,785 |
|
|
$ |
980,627 |
|
|
$ |
1,153,265 |
|
|
$ |
1,328,721 |
|
$ |
1,243,386 |
|
|
$ |
2,970,385 |
|
Veterans
First originations |
|
225,378 |
|
|
|
247,738 |
|
|
|
318,244 |
|
|
|
405,663 |
|
|
|
395,290 |
|
|
473,116 |
|
|
|
975,593 |
|
Total originations for sale (A) |
$ |
820,979 |
|
|
$ |
895,523 |
|
|
$ |
1,298,871 |
|
|
$ |
1,558,928 |
|
|
$ |
1,724,011 |
|
$ |
1,716,502 |
|
|
$ |
3,945,978 |
|
Originations for investment |
|
297,713 |
|
|
|
274,628 |
|
|
|
177,676 |
|
|
|
181,886 |
|
|
|
249,749 |
|
|
572,341 |
|
|
|
571,607 |
|
Total originations |
$ |
1,118,692 |
|
|
$ |
1,170,151 |
|
|
$ |
1,476,547 |
|
|
$ |
1,740,814 |
|
|
$ |
1,973,760 |
|
$ |
2,288,843 |
|
|
$ |
4,517,585 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Retail
originations as percentage of originations for sale |
|
73 |
% |
|
|
72 |
% |
|
|
75 |
% |
|
|
74 |
% |
|
|
77 |
% |
|
72 |
% |
|
|
75 |
% |
Veterans
First originations as a percentage of originations for sale |
|
27 |
|
|
|
28 |
|
|
|
25 |
|
|
|
26 |
|
|
|
23 |
|
|
28 |
|
|
|
25 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Purchases
as a percentage of originations for sale |
|
78 |
% |
|
|
53 |
% |
|
|
52 |
% |
|
|
56 |
% |
|
|
53 |
% |
|
65 |
% |
|
|
38 |
% |
Refinances as a percentage of originations for sale |
|
22 |
|
|
|
47 |
|
|
|
48 |
|
|
|
44 |
|
|
|
47 |
|
|
35 |
|
|
|
62 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Production Margin: |
|
|
|
|
|
|
|
|
|
|
|
|
Production revenue (B)(1) |
$ |
17,511 |
|
|
$ |
14,585 |
|
|
$ |
28,182 |
|
|
$ |
39,247 |
|
|
$ |
37,531 |
|
$ |
32,096 |
|
|
$ |
108,813 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
originations for sale (A) |
$ |
820,979 |
|
|
$ |
895,523 |
|
|
$ |
1,298,871 |
|
|
$ |
1,558,928 |
|
|
$ |
1,724,011 |
|
$ |
1,716,502 |
|
|
$ |
3,945,978 |
|
Add:
Current period end mandatory interest rate lock commitments to fund
originations for sale(2) |
|
301,322 |
|
|
|
330,196 |
|
|
|
353,509 |
|
|
|
510,982 |
|
|
|
605,400 |
|
|
301,322 |
|
|
|
605,400 |
|
Less:
Prior period end mandatory interest rate lock commitments to fund
originations for sale(2) |
|
330,196 |
|
|
|
353,509 |
|
|
|
510,982 |
|
|
|
605,400 |
|
|
|
798,534 |
|
|
353,509 |
|
|
|
1,072,717 |
|
Total
mortgage production volume (C) |
$ |
792,105 |
|
|
$ |
872,210 |
|
|
$ |
1,141,398 |
|
|
$ |
1,464,510 |
|
|
$ |
1,530,877 |
|
$ |
1,664,315 |
|
|
$ |
3,478,661 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Production margin (B / C) |
|
2.21 |
% |
|
|
1.67 |
% |
|
|
2.47 |
% |
|
|
2.68 |
% |
|
|
2.45 |
% |
|
1.93 |
% |
|
|
3.13 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
Mortgage Servicing: |
|
|
|
|
|
|
|
|
|
|
|
|
Loans
serviced for others (D) |
$ |
13,643,623 |
|
|
$ |
13,426,535 |
|
|
$ |
13,126,254 |
|
|
$ |
12,720,126 |
|
|
$ |
12,307,337 |
|
|
|
|
MSRs, at
fair value (E) |
|
212,664 |
|
|
|
199,146 |
|
|
|
147,571 |
|
|
|
133,552 |
|
|
|
127,604 |
|
|
|
|
Percentage of MSRs to loans serviced for others (E / D) |
|
1.56 |
% |
|
|
1.48 |
% |
|
|
1.12 |
% |
|
|
1.05 |
% |
|
|
1.04 |
% |
|
|
|
Servicing
income |
$ |
10,979 |
|
|
$ |
10,851 |
|
|
$ |
10,766 |
|
|
$ |
10,454 |
|
|
$ |
9,830 |
|
$ |
21,830 |
|
|
$ |
19,466 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Components of MSR: |
|
|
|
|
|
|
|
|
|
|
|
|
MSR -
current period capitalization |
$ |
11,210 |
|
|
$ |
14,401 |
|
|
$ |
15,080 |
|
|
$ |
15,546 |
|
|
$ |
17,512 |
|
$ |
25,611 |
|
|
$ |
42,128 |
|
MSR -
collection of expected cash flows - paydowns |
|
(1,598 |
) |
|
|
(1,215 |
) |
|
|
(1,101 |
) |
|
|
(1,036 |
) |
|
|
(991 |
) |
|
(2,813 |
) |
|
|
(1,719 |
) |
MSR -
collection of expected cash flows - payoffs |
|
(5,240 |
) |
|
|
(4,801 |
) |
|
|
(6,385 |
) |
|
|
(7,558 |
) |
|
|
(7,549 |
) |
|
(10,041 |
) |
|
|
(16,989 |
) |
MSR -
changes in fair value model assumptions |
|
9,147 |
|
|
|
43,365 |
|
|
|
6,656 |
|
|
|
(888 |
) |
|
|
(5,540 |
) |
|
52,512 |
|
|
|
12,505 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Summary of Mortgage Banking Revenue: |
|
|
|
|
|
|
|
|
|
|
|
|
Production revenue(1) |
$ |
17,511 |
|
|
$ |
14,585 |
|
|
$ |
28,182 |
|
|
$ |
39,247 |
|
|
$ |
37,531 |
|
$ |
32,096 |
|
|
$ |
108,813 |
|
Servicing
income |
|
10,979 |
|
|
|
10,851 |
|
|
|
10,766 |
|
|
|
10,454 |
|
|
|
9,830 |
|
|
21,830 |
|
|
|
19,466 |
|
MSR
activity |
|
13,519 |
|
|
|
51,750 |
|
|
|
14,250 |
|
|
|
6,064 |
|
|
|
3,432 |
|
|
65,269 |
|
|
|
35,925 |
|
Changes in fair value on early buy-out loans guaranteed by U.S.
government agencies and other revenue |
|
(8,695 |
) |
|
|
45 |
|
|
|
(60 |
) |
|
|
29 |
|
|
|
(209 |
) |
|
(8,650 |
) |
|
|
(126 |
) |
Total mortgage banking revenue |
$ |
33,314 |
|
|
$ |
77,231 |
|
|
$ |
53,138 |
|
|
$ |
55,794 |
|
|
$ |
50,584 |
|
$ |
110,545 |
|
|
$ |
164,078 |
|
(1) |
Production revenue represents revenue earned from the
origination and subsequent sale of mortgages, including gains on
loans sold and fees from originations, changes in other related
financial instruments carried at fair value, processing and other
related activities, and excludes servicing fees, changes in the
fair value of servicing rights and changes to the mortgage recourse
obligation and other non-production revenue. |
(2) |
Certain volume adjusted for the estimated pull-through rate of
the loan, which represents the Company’s best estimate of the
likelihood that a committed loan will ultimately fund. |
TABLE 17: NON-INTEREST EXPENSE
|
Three Months Ended |
|
Q2 2022 compared to
Q1 2022 |
|
Q2 2022 compared to
Q2 2021 |
|
Jun 30, |
|
Mar 31, |
|
Dec 31, |
|
Sep 30, |
|
Jun 30, |
|
|
(Dollars in thousands) |
|
2022 |
|
|
2022 |
|
|
|
2021 |
|
|
|
2021 |
|
|
|
2021 |
|
$ Change |
|
% Change |
|
$ Change |
|
% Change |
Salaries and employee benefits: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Salaries |
$ |
92,414 |
|
$ |
92,116 |
|
|
$ |
91,612 |
|
|
$ |
88,161 |
|
|
$ |
91,089 |
|
$ |
298 |
|
|
0 |
% |
|
$ |
1,325 |
|
|
1 |
% |
Commissions and incentive compensation |
|
46,131 |
|
|
51,793 |
|
|
|
49,923 |
|
|
|
57,026 |
|
|
|
53,751 |
|
|
(5,662 |
) |
|
(11 |
) |
|
|
(7,620 |
) |
|
(14 |
) |
Benefits |
|
28,781 |
|
|
28,446 |
|
|
|
25,596 |
|
|
|
25,725 |
|
|
|
27,977 |
|
|
335 |
|
|
1 |
|
|
|
804 |
|
|
3 |
|
Total salaries and employee benefits |
|
167,326 |
|
|
172,355 |
|
|
|
167,131 |
|
|
|
170,912 |
|
|
|
172,817 |
|
|
(5,029 |
) |
|
(3 |
) |
|
|
(5,491 |
) |
|
(3 |
) |
Software and equipment |
|
24,250 |
|
|
22,810 |
|
|
|
23,708 |
|
|
|
22,029 |
|
|
|
20,866 |
|
|
1,440 |
|
|
6 |
|
|
|
3,384 |
|
|
16 |
|
Operating lease equipment depreciation |
|
8,774 |
|
|
9,708 |
|
|
|
10,147 |
|
|
|
10,013 |
|
|
|
9,949 |
|
|
(934 |
) |
|
(10 |
) |
|
|
(1,175 |
) |
|
(12 |
) |
Occupancy, net |
|
17,651 |
|
|
17,824 |
|
|
|
18,343 |
|
|
|
18,158 |
|
|
|
17,687 |
|
|
(173 |
) |
|
(1 |
) |
|
|
(36 |
) |
|
0 |
|
Data processing |
|
8,010 |
|
|
7,505 |
|
|
|
7,207 |
|
|
|
7,104 |
|
|
|
6,920 |
|
|
505 |
|
|
7 |
|
|
|
1,090 |
|
|
16 |
|
Advertising and marketing |
|
16,615 |
|
|
11,924 |
|
|
|
13,981 |
|
|
|
13,443 |
|
|
|
11,305 |
|
|
4,691 |
|
|
39 |
|
|
|
5,310 |
|
|
47 |
|
Professional fees |
|
7,876 |
|
|
8,401 |
|
|
|
7,551 |
|
|
|
7,052 |
|
|
|
7,304 |
|
|
(525 |
) |
|
(6 |
) |
|
|
572 |
|
|
8 |
|
Amortization of other acquisition-related intangible assets |
|
1,579 |
|
|
1,609 |
|
|
|
1,811 |
|
|
|
1,877 |
|
|
|
2,039 |
|
|
(30 |
) |
|
(2 |
) |
|
|
(460 |
) |
|
(23 |
) |
FDIC insurance |
|
6,949 |
|
|
7,729 |
|
|
|
7,317 |
|
|
|
6,750 |
|
|
|
6,405 |
|
|
(780 |
) |
|
(10 |
) |
|
|
544 |
|
|
8 |
|
OREO expense, net |
|
294 |
|
|
(1,032 |
) |
|
|
(641 |
) |
|
|
(1,531 |
) |
|
|
769 |
|
|
1,326 |
|
|
NM |
|
|
(475 |
) |
|
(62 |
) |
Other: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Lending expenses, net of deferred originations costs |
|
4,270 |
|
|
6,821 |
|
|
|
5,525 |
|
|
|
5,999 |
|
|
|
6,717 |
|
|
(2,551 |
) |
|
(37 |
) |
|
|
(2,447 |
) |
|
(36 |
) |
Travel and entertainment |
|
3,897 |
|
|
2,676 |
|
|
|
3,782 |
|
|
|
3,668 |
|
|
|
1,918 |
|
|
1,221 |
|
|
46 |
|
|
|
1,979 |
|
|
NM |
Miscellaneous |
|
21,177 |
|
|
15,968 |
|
|
|
17,537 |
|
|
|
16,670 |
|
|
|
15,416 |
|
|
5,209 |
|
|
33 |
|
|
|
5,761 |
|
|
37 |
|
Total other |
|
29,344 |
|
|
25,465 |
|
|
|
26,844 |
|
|
|
26,337 |
|
|
|
24,051 |
|
|
3,879 |
|
|
15 |
|
|
|
5,293 |
|
|
22 |
|
Total Non-Interest Expense |
$ |
288,668 |
|
$ |
284,298 |
|
|
$ |
283,399 |
|
|
$ |
282,144 |
|
|
$ |
280,112 |
|
$ |
4,370 |
|
|
2 |
% |
|
$ |
8,556 |
|
|
3 |
% |
NM - Not meaningful.
|
|
Six Months Ended |
|
|
|
|
|
Jun 30, |
|
Jun 30, |
$ |
|
% |
(Dollars in thousands) |
|
|
2022 |
|
|
|
2021 |
Change |
|
Change |
Salaries and employee benefits: |
|
|
|
|
|
|
|
Salaries |
|
$ |
184,530 |
|
|
$ |
182,142 |
$ |
2,388 |
|
|
1 |
% |
Commissions and incentive compensation |
|
|
97,924 |
|
|
|
115,118 |
|
(17,194 |
) |
|
(15 |
) |
Benefits |
|
|
57,227 |
|
|
|
56,366 |
|
861 |
|
|
2 |
|
Total salaries and employee benefits |
|
|
339,681 |
|
|
|
353,626 |
|
(13,945 |
) |
|
(4 |
) |
Software and equipment |
|
|
47,060 |
|
|
|
41,778 |
|
5,282 |
|
|
13 |
|
Operating lease equipment depreciation |
|
|
18,482 |
|
|
|
20,720 |
|
(2,238 |
) |
|
(11 |
) |
Occupancy, net |
|
|
35,475 |
|
|
|
37,683 |
|
(2,208 |
) |
|
(6 |
) |
Data processing |
|
|
15,515 |
|
|
|
12,968 |
|
2,547 |
|
|
20 |
|
Advertising and marketing |
|
|
28,539 |
|
|
|
19,851 |
|
8,688 |
|
|
44 |
|
Professional fees |
|
|
16,277 |
|
|
|
14,891 |
|
1,386 |
|
|
9 |
|
Amortization of other acquisition-related intangible assets |
|
|
3,188 |
|
|
|
4,046 |
|
(858 |
) |
|
(21 |
) |
FDIC insurance |
|
|
14,678 |
|
|
|
12,963 |
|
1,715 |
|
|
13 |
|
OREO expense, net |
|
|
(738 |
) |
|
|
518 |
|
(1,256 |
) |
|
NM |
Other: |
|
|
|
|
|
|
|
Lending expenses, net of deferred originations costs |
|
|
11,091 |
|
|
|
11,270 |
|
(179 |
) |
|
(2 |
) |
Travel and entertainment |
|
|
6,573 |
|
|
|
2,598 |
|
3,975 |
|
|
NM |
Miscellaneous |
|
|
37,145 |
|
|
|
34,089 |
|
3,056 |
|
|
9 |
|
Total other |
|
|
54,809 |
|
|
|
47,957 |
|
6,852 |
|
|
14 |
|
Total Non-Interest Expense |
|
$ |
572,966 |
|
|
$ |
567,001 |
$ |
5,965 |
|
|
1 |
% |
NM - Not meaningful.
TABLE 18: SUPPLEMENTAL NON-GAAP FINANCIAL
MEASURES/RATIOS
The accounting and reporting policies of
Wintrust conform to generally accepted accounting principles
(“GAAP”) in the United States and prevailing practices in the
banking industry. However, certain non-GAAP performance measures
and ratios are used by management to evaluate and measure the
Company’s performance. These include taxable-equivalent net
interest income (including its individual components),
taxable-equivalent net interest margin (including its individual
components), the taxable-equivalent efficiency ratio, tangible
common equity ratio, tangible book value per common share, return
on average tangible common equity, pre-tax income, excluding
provision for credit losses, and pre-tax income, excluding
provision for credit losses, adjusted for changes in fair value of
MSRs and early buy-out loans guaranteed by U.S. government
agencies. Management believes that these measures and ratios
provide users of the Company’s financial information a more
meaningful view of the performance of the Company’s
interest-earning assets and interest-bearing liabilities and of the
Company’s operating efficiency. Other financial holding companies
may define or calculate these measures and ratios differently.
Management reviews yields on certain asset
categories and the net interest margin of the Company and its
banking subsidiaries on a fully taxable-equivalent basis. In this
non-GAAP presentation, net interest income is adjusted to reflect
tax-exempt interest income on an equivalent before-tax basis using
tax rates effective as of the end of the period. This measure
ensures comparability of net interest income arising from both
taxable and tax-exempt sources. Net interest income on a fully
taxable-equivalent basis is also used in the calculation of the
Company’s efficiency ratio. The efficiency ratio, which is
calculated by dividing non-interest expense by total
taxable-equivalent net revenue (less securities gains or losses),
measures how much it costs to produce one dollar of revenue.
Securities gains or losses are excluded from this calculation to
better match revenue from daily operations to operational expenses.
Management considers the tangible common equity ratio and tangible
book value per common share as useful measurements of the Company’s
equity. The Company references the return on average tangible
common equity as a measurement of profitability. Management
considers pre-tax income, excluding provision for credit losses,
and pre-tax income, excluding provision for credit losses, adjusted
for changes in fair value of MSRs and early buy-out loans
guaranteed by U.S. government agencies, as useful measurements of
the Company’s core net income.
|
Three Months Ended |
Six Months Ended |
|
Jun 30, |
|
Mar 31, |
|
Dec 31, |
|
Sep 30, |
|
Jun 30, |
Jun 30, |
|
Jun 30, |
(Dollars and shares in thousands) |
|
2022 |
|
|
|
2022 |
|
|
|
2021 |
|
|
|
2021 |
|
|
|
2021 |
|
|
2022 |
|
|
|
2021 |
|
Reconciliation of Non-GAAP Net Interest Margin and
Efficiency Ratio: |
|
|
|
(A) Interest Income (GAAP) |
$ |
371,968 |
|
|
$ |
328,252 |
|
|
$ |
327,979 |
|
|
$ |
322,457 |
|
|
$ |
319,579 |
|
$ |
700,220 |
|
|
$ |
625,048 |
|
Taxable-equivalent adjustment: |
|
|
|
|
|
|
|
|
|
|
|
|
- Loans |
|
568 |
|
|
|
427 |
|
|
|
417 |
|
|
|
411 |
|
|
|
415 |
|
|
995 |
|
|
|
799 |
|
- Liquidity Management Assets |
|
472 |
|
|
|
465 |
|
|
|
486 |
|
|
|
492 |
|
|
|
494 |
|
|
937 |
|
|
|
994 |
|
- Other Earning Assets |
|
1 |
|
|
|
2 |
|
|
|
2 |
|
|
|
— |
|
|
|
— |
|
|
3 |
|
|
|
— |
|
(B) Interest Income (non-GAAP) |
$ |
373,009 |
|
|
$ |
329,146 |
|
|
$ |
328,884 |
|
|
$ |
323,360 |
|
|
$ |
320,488 |
|
$ |
702,155 |
|
|
$ |
626,841 |
|
(C) Interest Expense (GAAP) |
|
34,164 |
|
|
|
28,958 |
|
|
|
32,003 |
|
|
|
34,961 |
|
|
|
39,989 |
|
|
63,122 |
|
|
|
83,563 |
|
(D) Net Interest Income (GAAP) (A minus C) |
$ |
337,804 |
|
|
$ |
299,294 |
|
|
$ |
295,976 |
|
|
$ |
287,496 |
|
|
$ |
279,590 |
|
$ |
637,098 |
|
|
$ |
541,485 |
|
(E) Net Interest Income (non-GAAP) (B minus
C) |
$ |
338,845 |
|
|
$ |
300,188 |
|
|
$ |
296,881 |
|
|
$ |
288,399 |
|
|
$ |
280,499 |
|
$ |
639,033 |
|
|
$ |
543,278 |
|
Net interest margin (GAAP) |
|
2.92 |
% |
|
|
2.60 |
% |
|
|
2.54 |
% |
|
|
2.58 |
% |
|
|
2.62 |
% |
|
2.76 |
% |
|
|
2.58 |
% |
Net interest margin, fully taxable-equivalent
(non-GAAP) |
|
2.93 |
|
|
|
2.61 |
|
|
|
2.55 |
|
|
|
2.59 |
|
|
|
2.63 |
|
|
2.77 |
|
|
|
2.59 |
|
(F) Non-interest income |
$ |
102,942 |
|
|
$ |
162,790 |
|
|
$ |
133,767 |
|
|
$ |
136,474 |
|
|
$ |
129,373 |
|
$ |
265,732 |
|
|
$ |
315,879 |
|
(G) (Losses) gains on investment securities, net |
|
(7,797 |
) |
|
|
(2,782 |
) |
|
|
(1,067 |
) |
|
|
(2,431 |
) |
|
|
1,285 |
|
|
(10,579 |
) |
|
|
2,439 |
|
(H) Non-interest expense |
|
288,668 |
|
|
|
284,298 |
|
|
|
283,399 |
|
|
|
282,144 |
|
|
|
280,112 |
|
|
572,966 |
|
|
|
567,001 |
|
Efficiency ratio (H/(D+F-G)) |
|
64.36 |
% |
|
|
61.16 |
% |
|
|
65.78 |
% |
|
|
66.17 |
% |
|
|
68.71 |
% |
|
62.73 |
% |
|
|
66.32 |
% |
Efficiency ratio (non-GAAP) (H/(E+F-G)) |
|
64.21 |
|
|
|
61.04 |
|
|
|
65.64 |
|
|
|
66.03 |
|
|
|
68.56 |
|
|
62.60 |
|
|
|
66.18 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of Non-GAAP Tangible Common Equity
Ratio: |
|
|
|
Total shareholders’ equity (GAAP) |
$ |
4,727,623 |
|
|
$ |
4,492,256 |
|
|
$ |
4,498,688 |
|
|
$ |
4,410,317 |
|
|
$ |
4,339,011 |
|
|
|
|
Less: Non-convertible preferred stock (GAAP) |
|
(412,500 |
) |
|
|
(412,500 |
) |
|
|
(412,500 |
) |
|
|
(412,500 |
) |
|
|
(412,500 |
) |
|
|
|
Less: Intangible assets (GAAP) |
|
(679,827 |
) |
|
|
(682,101 |
) |
|
|
(683,456 |
) |
|
|
(675,910 |
) |
|
|
(678,333 |
) |
|
|
|
(I) Total tangible common shareholders’ equity (non-GAAP) |
$ |
3,635,296 |
|
|
$ |
3,397,655 |
|
|
$ |
3,402,732 |
|
|
$ |
3,321,907 |
|
|
$ |
3,248,178 |
|
|
|
|
(J) Total assets (GAAP) |
$ |
50,969,332 |
|
|
$ |
50,250,661 |
|
|
$ |
50,142,143 |
|
|
$ |
47,832,271 |
|
|
$ |
46,738,450 |
|
|
|
|
Less: Intangible assets (GAAP) |
|
(679,827 |
) |
|
|
(682,101 |
) |
|
|
(683,456 |
) |
|
|
(675,910 |
) |
|
|
(678,333 |
) |
|
|
|
(K) Total tangible assets (non-GAAP) |
$ |
50,289,505 |
|
|
$ |
49,568,560 |
|
|
$ |
49,458,687 |
|
|
$ |
47,156,361 |
|
|
$ |
46,060,117 |
|
|
|
|
Common equity to assets ratio (GAAP) (L/J) |
|
8.5 |
% |
|
|
8.1 |
% |
|
|
8.1 |
% |
|
|
8.4 |
% |
|
|
8.4 |
% |
|
|
|
Tangible common equity ratio (non-GAAP) (I/K) |
|
7.2 |
|
|
|
6.9 |
|
|
|
6.9 |
|
|
|
7.0 |
|
|
|
7.1 |
|
|
|
|
|
Three Months Ended |
Six Months Ended |
|
Jun 30, |
|
Mar 31, |
|
Dec 31, |
|
Sep 30, |
|
Jun 30, |
Jun 30, |
|
Jun 30, |
(Dollars and shares in thousands) |
|
2022 |
|
|
|
2022 |
|
|
|
2021 |
|
|
|
2021 |
|
|
|
2021 |
|
|
2022 |
|
|
|
2021 |
|
Reconciliation of Non-GAAP Tangible Book Value per Common
Share: |
|
|
|
Total shareholders’ equity |
$ |
4,727,623 |
|
|
$ |
4,492,256 |
|
|
$ |
4,498,688 |
|
|
$ |
4,410,317 |
|
|
$ |
4,339,011 |
|
|
|
|
Less: Preferred stock |
|
(412,500 |
) |
|
|
(412,500 |
) |
|
|
(412,500 |
) |
|
|
(412,500 |
) |
|
|
(412,500 |
) |
|
|
|
(L) Total common equity |
$ |
4,315,123 |
|
|
$ |
4,079,756 |
|
|
$ |
4,086,188 |
|
|
$ |
3,997,817 |
|
|
$ |
3,926,511 |
|
|
|
|
(M) Actual common shares outstanding |
|
60,722 |
|
|
|
57,253 |
|
|
|
57,054 |
|
|
|
56,956 |
|
|
|
57,067 |
|
|
|
|
Book value per common share (L/M) |
$ |
71.06 |
|
|
$ |
71.26 |
|
|
$ |
71.62 |
|
|
$ |
70.19 |
|
|
$ |
68.81 |
|
|
|
|
Tangible book value per common share (non-GAAP)
(I/M) |
|
59.87 |
|
|
|
59.34 |
|
|
|
59.64 |
|
|
|
58.32 |
|
|
|
56.92 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of Non-GAAP Return on Average Tangible
Common Equity: |
|
|
|
(N) Net income applicable to common shares |
$ |
87,522 |
|
|
$ |
120,400 |
|
|
$ |
91,766 |
|
|
$ |
102,146 |
|
|
$ |
98,118 |
|
$ |
207,922 |
|
|
$ |
244,275 |
|
Add: Intangible asset amortization |
|
1,579 |
|
|
|
1,609 |
|
|
|
1,811 |
|
|
|
1,877 |
|
|
|
2,039 |
|
|
3,188 |
|
|
|
4,046 |
|
Less: Tax effect of intangible asset amortization |
|
(445 |
) |
|
|
(430 |
) |
|
|
(505 |
) |
|
|
(509 |
) |
|
|
(553 |
) |
|
(870 |
) |
|
|
(1,068 |
) |
After-tax intangible asset amortization |
$ |
1,134 |
|
|
$ |
1,179 |
|
|
$ |
1,306 |
|
|
$ |
1,368 |
|
|
$ |
1,486 |
|
$ |
2,318 |
|
|
$ |
2,978 |
|
(O) Tangible net income applicable to common shares (non-GAAP) |
$ |
88,656 |
|
|
$ |
121,579 |
|
|
$ |
93,072 |
|
|
$ |
103,514 |
|
|
$ |
99,604 |
|
$ |
210,240 |
|
|
$ |
247,253 |
|
Total average shareholders’ equity |
$ |
4,526,110 |
|
|
$ |
4,500,460 |
|
|
$ |
4,433,953 |
|
|
$ |
4,343,915 |
|
|
$ |
4,256,778 |
|
$ |
4,513,356 |
|
|
$ |
4,211,088 |
|
Less: Average preferred stock |
|
(412,500 |
) |
|
|
(412,500 |
) |
|
|
(412,500 |
) |
|
|
(412,500 |
) |
|
|
(412,500 |
) |
|
(412,500 |
) |
|
|
(412,500 |
) |
(P) Total average common shareholders’ equity |
$ |
4,113,610 |
|
|
$ |
4,087,960 |
|
|
$ |
4,021,453 |
|
|
$ |
3,931,415 |
|
|
$ |
3,844,278 |
|
$ |
4,100,856 |
|
|
$ |
3,798,588 |
|
Less: Average intangible assets |
|
(681,091 |
) |
|
|
(682,603 |
) |
|
|
(677,470 |
) |
|
|
(677,201 |
) |
|
|
(679,535 |
) |
|
(681,843 |
) |
|
|
(680,166 |
) |
(Q) Total average tangible common shareholders’ equity
(non-GAAP) |
$ |
3,432,519 |
|
|
$ |
3,405,357 |
|
|
$ |
3,343,983 |
|
|
$ |
3,254,214 |
|
|
$ |
3,164,743 |
|
$ |
3,419,013 |
|
|
$ |
3,118,422 |
|
Return on average common equity, annualized
(N/P) |
|
8.53 |
% |
|
|
11.94 |
% |
|
|
9.05 |
% |
|
|
10.31 |
% |
|
|
10.24 |
% |
|
10.22 |
% |
|
|
12.97 |
% |
Return on average tangible common equity, annualized
(non-GAAP) (O/Q) |
|
10.36 |
|
|
|
14.48 |
|
|
|
11.04 |
|
|
|
12.62 |
|
|
|
12.62 |
|
|
12.40 |
|
|
|
15.99 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of Non-GAAP Pre-Tax, Pre-Provision Income,
Adjusted for Changes in Fair Value of MSRs and Early Buy-out Loans
Guaranteed by U.S. Government Agencies: |
|
|
|
|
|
Income before taxes |
$ |
131,661 |
|
|
$ |
173,680 |
|
|
$ |
137,045 |
|
|
$ |
149,742 |
|
|
$ |
144,150 |
|
$ |
305,341 |
|
|
$ |
351,009 |
|
Add: Provision for credit losses |
|
20,417 |
|
|
|
4,106 |
|
|
|
9,299 |
|
|
|
(7,916 |
) |
|
|
(15,299 |
) |
|
24,523 |
|
|
|
(60,646 |
) |
Pre-tax income, excluding provision for credit losses
(non-GAAP) |
$ |
152,078 |
|
|
$ |
177,786 |
|
|
$ |
146,344 |
|
|
$ |
141,826 |
|
|
$ |
128,851 |
|
$ |
329,864 |
|
|
$ |
290,363 |
|
Less: Changes in fair value of MSRs and early buy-out loans
guaranteed by U.S. government agencies |
|
(445 |
) |
|
|
(43,365 |
) |
|
|
(6,656 |
) |
|
|
888 |
|
|
|
5,540 |
|
|
(43,810 |
) |
|
|
(12,505 |
) |
Pre-tax income, excluding provision for credit losses,
adjusted for changes in fair value of MSRs and early buy-out loans
guaranteed by U.S. government agencies (non-GAAP) |
$ |
151,633 |
|
|
$ |
134,421 |
|
|
$ |
139,688 |
|
|
$ |
142,714 |
|
|
$ |
134,391 |
|
$ |
286,054 |
|
|
$ |
277,858 |
|
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, Rockford, 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 continued
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 2021 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 continued
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 and events 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, armed hostilities 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, July 21, 2022 at 10:00 a.m. (Central Time) regarding
second quarter and year-to-date 2022 earnings results. Individuals
interested in participating in the call by addressing questions to
management should register for the call to receive the dial-in
numbers and unique PIN at the link included within the Company’s
press release dated July 6, 2022 available at the Investor
Relations, Investor News and Events, Press Releases link on its
website at https://www.wintrust.com. A separate simultaneous
audio-only webcast link is included within the press release
referenced above. Registration for and a replay of the audio-only
webcast with an accompanying slide presentation will be available
at https://www.wintrust.com, Investor Relations, Investor News and
Events, Presentations & Conference Calls. The text of the
second quarter and year-to-date 2022 earnings press release will
also 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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