ROSEMONT, Ill., Jan. 18, 2023 (GLOBE NEWSWIRE)
-- Wintrust Financial Corporation (“Wintrust”, “the Company”, “we”
or “our”) (Nasdaq: WTFC) announced net income of $144.8 million or
$2.23 per diluted common share for the fourth quarter of 2022, an
increase in diluted earnings per common share of 1% compared to the
third quarter of 2022. The Company had record annual net income of
$509.7 million or $8.02 per diluted common share for the year ended
December 31, 2022 as compared to net income of $466.2 million or
$7.58 per diluted common share for the same period of 2021.
Pre-tax, pre-provision income (non-GAAP) totaled a record $779.1
million for the year ended December 31, 2022, up 35% as compared to
$578.5 million for the same period of 2021.
Edward J. Wehmer, Founder and Chief Executive
Officer, commented, “Wintrust finished the year with great momentum
as our fourth quarter results were highlighted by strong net income
and record quarterly pre-tax, pre-provision income. Net interest
income and net interest margin expanded meaningfully and our loan
portfolio continued to grow while exhibiting low levels of net
charge-offs. The fourth quarter caps an extraordinary year for
Wintrust, and we believe that we are well-positioned to reach even
higher levels of financial performance in 2023."
Highlights of the fourth quarter of
2022:
Comparative information to the third quarter of
2022, unless otherwise noted
- Net interest income increased by
$55.4 million or 14% as compared to the third quarter of 2022
primarily due to improvement in net interest margin and loan
growth.
- Net interest margin, on a GAAP
basis, increased by 37 basis points to 3.71% for the fourth quarter
of 2022 as the upward repricing of earning assets outpaced
increases in deposit costs. Net interest margin, on a fully taxable
equivalent basis (non-GAAP) increased by 38 basis points to
3.73%.
- Total loans increased by $1.0
billion, or 11% on an annualized basis. In addition, total loans as
of December 31, 2022 were $630 million higher than average total
loans in the fourth quarter of 2022 which is expected to benefit
future quarters.
- Total assets increased by $567
million totaling $52.9 billion as of December 31, 2022 and total
deposits increased by $105 million.
- Recorded a provision for credit
losses of $47.6 million in the fourth quarter of 2022 primarily
related to a moderate deterioration in macroeconomic factors
coupled with strong loan growth. This compares to a provision for
credit losses of $6.4 million in the third quarter of 2022.
- Net charge-offs totaled $5.1
million or five basis points of average total loans on an
annualized basis in the fourth quarter of 2022 as compared to $3.2
million or three basis points of average total loans on an
annualized basis in the third quarter of 2022.
- Non-performing loans were
essentially unchanged at 0.26% of total loans, as of December 31,
2022. See “Asset Quality” section for more information.
- Book value per common share
increased by $2.56 to $72.12 as of December 31, 2022. Tangible book
value per common share (non-GAAP) increased to $61.00 as of
December 31, 2022 as compared to $58.42 as of September 30,
2022.
Other items of note from the fourth quarter
of 2022
- Net losses on investment securities
totaled $6.7 million in the fourth quarter of 2022 related to
changes in the value of equity securities as compared to net losses
of $3.1 million in the third quarter of 2022.
- The effective tax rate decreased as
the Company recorded an approximately $1.7 million benefit to
income tax expense related to earnings at its Canadian subsidiary.
See “Income Taxes” section for more information.
- Recorded $838,000 in occupancy
expense related to an unrealized loss associated with the
anticipated sale of a branch facility.
- Recorded $846,000 in operating
lease equipment expense related to the impairment of an operating
lease asset.
- The Company recorded net negative
fair value adjustments of $702,000 in the fourth quarter of 2022
related to fair value changes in certain mortgage assets, see
“Non-Interest Income” section for more information.
Mr. Wehmer continued, "The Company experienced
robust loan growth as loans increased by $1.0 billion, or 11% on an
annualized basis, in the fourth quarter of 2022. The loan growth
was spread across all of our material loan portfolios as we
experienced growth in commercial, commercial real estate,
commercial insurance premium finance receivables and life insurance
premium finance receivables. We remain prudent in our review of
credit prospects ensuring our loan growth stays within our
conservative credit standards. Loan growth in the fourth quarter of
2022 outpaced deposit growth which resulted in our loans to
deposits ratio ending the quarter at 91.4%. Strategically growing
deposits is among our most important objectives in 2023 and we
believe we are well positioned to accomplish that without
compromising our net interest margin guidance."
Mr. Wehmer commented, "Net interest income
increased by $55.4 million in the fourth quarter of 2022 primarily
due to improvement in net interest margin as well as an increase in
earning assets. Net interest margin, on a fully taxable equivalent
basis (non-GAAP), increased by 38 basis points as the upward
repricing of earning assets outpaced deposit rate changes. We
expect that trend to continue and believe, subject to no material
change in the consensus projection of interest rates as of this
release date, that our net interest margin should approach 4.00%
during the first quarter of 2023. While Wintrust benefited
significantly from being asset sensitive to interest rates in 2022,
we acknowledge the uncertainty in projected interest rates and are
repositioning our balance sheet to reduce our interest rate
sensitivity. We expect to continue this strategy, including the use
of derivative instruments, in order to mitigate potential negative
impacts to our net interest margin in a declining interest rate
environment.”
Commenting on credit quality, Mr. Wehmer stated,
"The allowance for credit losses totaled $357.9 million as of
December 31, 2022, an increase of $42.6 million as compared to
$315.3 million as of September 30, 2022. The $42.6 million
increase in reserves consisted of a $32.2 million increase related
to a moderate deterioration in macroeconomic factors and a $10.4
million increase related to portfolio changes in the fourth quarter
of 2022. Meanwhile, credit metrics related to current loan
performance remained relatively stable. Non-performing loans
totaled $100.7 million and comprised only 0.26% of total loans as
of December 31, 2022, essentially unchanged from levels as of
September 30, 2022. Net charge-offs totaled $5.1 million or
five basis points of average total loans on an annualized basis in
the fourth quarter of 2022 as compared to $3.2 million or three
basis points of average total loans on an annualized basis in the
third quarter of 2022. The allowance for credit losses on our core
loan portfolio as of December 31, 2022 is approximately 1.42% of
the outstanding balance. We believe that the Company’s reserves
remain appropriate and we remain diligent in our review of
credit."
Mr. Wehmer concluded, “Our fourth quarter of
2022 results continued to demonstrate the multi-faceted nature of
our business model which we believe uniquely positions us to be
successful. We remain an asset driven organization, focused on
prudently growing our loan portfolio. We are confident we can raise
funding to support asset growth and drive further net interest
income expansion. We are closely watching our expenses and believe
our efficiency ratio will continue to improve. We are
opportunistically evaluating the acquisition market for both banks
and business lines of various sizes and are excited about our
recently announced and pending wealth management acquisition. Of
course, we remain diligent in our consideration of acquisition
targets and intend to be prudent in our decision making, always
seeking to minimize tangible book value dilution. We are very proud
that Wintrust’s tangible book value per common share has increased
every year since we became a public company in 1996 and you can be
assured of our best efforts to maintain that trend in 2023 and
beyond.”
The graphs below illustrate certain financial
highlights of the fourth quarter of 2022 as well as historical
financial performance. See “Supplemental Non-GAAP Financial
Measures/Ratios” at Table 17 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/b70f58b8-5524-4ca3-8936-f89104accc4a
SUMMARY OF RESULTS:
BALANCE SHEET
Total loans increased by $1.0 billion as core
loans increased by $794 million and niche loans increased by $250
million as compared to the third quarter of 2022. See Table 1
for more information. During the fourth quarter of 2022, the
Company increased its investment portfolio by approximately $1.5
billion. However, certain securities were called by option holders
on December 31, 2022 which resulted in the recognition of a trade
date receivable of $922 million as of December 31, 2022. In January
2023, the Company reinvested the trade date receivable proceeds by
purchasing a similar amount of investment securities.
Total liabilities increased $408 million in the
fourth quarter of 2022 as compared to the third quarter of 2022
resulting primarily from a $136 million increase in notes payable
and a $105 million increase in total deposits. The Company's loans
to deposits ratio ended the quarter at 91.4%. 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 Table 1 through Table 3 in this report.
NET INTEREST INCOME
For the fourth quarter of 2022, net interest
income totaled $456.8 million, an increase of $55.4 million as
compared to the third quarter of 2022. The $55.4 million increase
in net interest income in the fourth quarter of 2022 compared to
the third quarter of 2022 was primarily due to robust loan growth
and continued expansion of net interest margin.
Net interest margin was 3.71% (3.73% on a fully
taxable-equivalent basis, non-GAAP) during the fourth quarter of
2022 compared to 3.34% (3.35% on a fully taxable-equivalent basis,
non-GAAP) during the third quarter of 2022. The net interest margin
increase as compared to the third quarter of 2022 was due to an 84
basis point increase in yield on earning assets and a 22 basis
point increase in the net free funds contribution. These
improvements were partially offset by a 68 basis point increase in
the rate paid on interest-bearing liabilities. The 84 basis point
increase in the yield on earning assets in the fourth quarter of
2022 as compared to the third quarter of 2022 was primarily due to
an 87 basis point expansion on loan yields and a higher liquidity
management asset yield as the Company earned higher yields on
interest-bearing deposits with banks and added investment
securities at higher current market rates. The 68 basis point
increase in the rate paid on interest-bearing liabilities in the
fourth quarter of 2022 as compared to the third quarter of 2022 is
primarily due to a 66 basis point increase in the rate paid on
interest-bearing deposits primarily related to the increasing rate
environment.
For more information regarding net interest
income, see Table 4 through Table 8 in this report.
ASSET QUALITY
The allowance for credit losses totaled $357.9
million as of December 31, 2022, an increase of $42.6 million
as compared to $315.3 million as of September 30, 2022. The
$42.6 million increase in reserves consisted of a $32.2 million
increase related to a moderate deterioration in macroeconomic
factors and a $10.4 million increase related to portfolio changes
in the fourth quarter of 2022. A provision for credit losses
totaling $47.6 million was recorded for the fourth quarter of 2022
as compared to $6.4 million recorded in the third 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
December 31, 2022, September 30, 2022, and June 30,
2022 is shown on Table 12 of this report.
Net charge-offs totaled $5.1 million in the
fourth quarter of 2022, as compared to $3.2 million of net
charge-offs in the third quarter of 2022. Net charge-offs as a
percentage of average total loans were reported as five basis
points in the fourth quarter of 2022 on an annualized basis
compared to three basis points on an annualized basis in the third
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 0.21% as of December 31, 2022, compared to 0.20% at
September 30, 2022. Non-performing assets totaled $110.6
million at December 31, 2022, compared to $104.3 million at
September 30, 2022. Non-performing loans remained relatively
flat totaling $100.7 million, or 0.26% of total loans, at
December 31, 2022 compared to $97.6 million, or 0.26% of total
loans, at September 30, 2022. For more information regarding
non-performing assets, see Table 14 in this report.
NON-INTEREST INCOME
Wealth management revenue decreased $2.4 million
in the fourth quarter of 2022 as compared to the third quarter of
2022 primarily related to lower fees associated with our
tax-deferred like-kind exchange business. 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 $9.8
million in the fourth quarter of 2022 as compared to the third
quarter of 2022 primarily due to lower production revenue as a
result of declining mortgage origination volume in the recent
rising rate environment as well as lower production margins. The
Company recorded net negative fair value adjustments of $702,000 in
the fourth quarter of 2022 related to fair value changes in certain
mortgage assets. This included a $2.1 million decrease in the value
of mortgage servicing rights related to changes in fair value model
assumptions net of economic hedges and a positive $1.4 million
valuation related adjustment on the Company’s held-for-sale
portfolio of early buy-out exercised loans guaranteed by U.S.
government agencies which are held at fair value. The Company
intends to monitor the relationship of these assets and will seek
to minimize the earnings impact of fair value changes in future
quarters.
Net losses on investment securities totaled $6.7
million in the fourth quarter of 2022 related to changes in the
value of equity securities as compared to net losses of $3.1
million in the third quarter of 2022.
Fees from covered call options increased $6.6
million in the fourth quarter of 2022 as compared to the third
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. These option
transactions are designed to mitigate overall interest rate risk
and do not qualify as hedges pursuant to accounting guidance.
For more information regarding non-interest
income, see Table 15 in this report.
NON-INTEREST EXPENSE
Salaries and employee benefits expense increased
by $4.2 million in the fourth quarter of 2022 as compared to the
third quarter of 2022. The $4.2 million increase is primarily
related to higher incentive compensation expense related to the
Company's strong 2022 financial performance, increased employee
insurance costs and higher levels of deferred compensation expense,
partially offset by lower commissions expense primarily related to
lower mortgage production volume.
Advertising and marketing expenses in the fourth
quarter of 2022 totaled $14.3 million, which is a $2.3 million
decrease as compared to the third quarter of 2022 primarily due to
a decrease in sports sponsorships. 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 increased by $4.8 million
in the fourth quarter of 2022 as compared to the third quarter of
2022 which includes a $1.1 million increase in charitable
donations. In addition, 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 16 in this report.
INCOME TAXES
The Company recorded income tax expense of $50.4
million in the fourth quarter of 2022 compared to $57.1 million in
the third quarter of 2022. The effective tax rates were 25.80% in
the fourth quarter of 2022 compared to 28.53% in the third quarter
of 2022. Primarily as a result of fluctuations in currency rates,
in the fourth quarter of 2022, the Company reversed approximately
$1.7 million of the $2.0 million of tax expense related to GILTI
(“Global Intangible Low-taxed Income”) recorded in the third
quarter of 2022. The GILTI tax is a U.S. minimum tax on global
profits.
BUSINESS UNIT SUMMARY
Community Banking
Through its community banking unit, the Company
provides banking and financial services primarily to individuals,
small to mid-sized businesses, local governmental units and
institutional clients residing primarily in the local areas the
Company services. In the fourth quarter of 2022, this unit expanded
its loan portfolio. The segment’s net interest income increased in
the fourth quarter of 2022 as compared to the third quarter of 2022
due to loan growth and an increased net interest margin.
Mortgage banking revenue was $17.4 million for
the fourth quarter of 2022, a decrease of $9.8 million as compared
to the third quarter of 2022, primarily due to lower production
revenue as a result of declining mortgage origination volume in the
current rising rate environment as well as lower production
margins. Service charges on deposit accounts totaled $13.1 million
in the fourth quarter of 2022, a decrease of $1.3 million as
compared to the third quarter of 2022 primarily due to lower fees
associated with commercial account activity. The Company’s gross
commercial and commercial real estate loan pipelines remained
robust as of December 31, 2022 indicating momentum for
expected continued loan growth in the first quarter of 2023.
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 $4.0 billion during
the fourth quarter of 2022 and average balances increased by $396.1
million as compared to the third quarter of 2022. The Company’s
leasing portfolio balance increased in the fourth quarter of 2022,
with its portfolio of assets, including capital leases, loans and
equipment on operating leases, totaling $3.0 billion as of
December 31, 2022 as compared to $2.7 billion as of
September 30, 2022. Revenues from the Company’s out-sourced
administrative services business were $1.7 million in the fourth
quarter of 2022, an increase of $203,000 from the third 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 $30.7 million in the
fourth quarter of 2022, a decrease of $2.4 million compared to the
third quarter of 2022. The decline in wealth management revenue in
the fourth quarter of 2022 was primarily related to lower fees
associated with our tax-deferred like-kind exchange business. At
December 31, 2022, the Company’s wealth management
subsidiaries had approximately $34.4 billion of assets under
administration, which included $7.4 billion of assets owned by the
Company and its subsidiary banks, representing an increase from the
$32.8 billion of assets under administration at September 30,
2022.
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 fourth quarter of 2022, as compared to the third
quarter of 2022 (sequential quarter) and fourth quarter of 2021
(linked quarter), are shown in the table below:
|
|
|
|
|
|
|
% or(1)
basis point
(bp) change
from
3rd Quarter
2022 |
|
% or
basis point
(bp) change
from
4th Quarter
2021 |
|
|
Three Months Ended |
|
(Dollars in thousands, except per share data) |
|
Dec 31, 2022 |
|
Sep 30, 2022 |
|
Dec 31, 2021 |
|
Net income |
|
$ |
144,817 |
|
|
$ |
142,961 |
|
|
$ |
98,757 |
|
1 |
|
% |
|
47 |
% |
Pre-tax
income, excluding provision for credit losses
(non-GAAP)(2) |
|
|
242,819 |
|
|
|
206,461 |
|
|
|
146,344 |
|
18 |
|
|
|
66 |
|
Net
income per common share – diluted |
|
|
2.23 |
|
|
|
2.21 |
|
|
|
1.58 |
|
1 |
|
|
|
41 |
|
Cash
dividends declared per common share |
|
|
0.34 |
|
|
|
0.34 |
|
|
|
0.31 |
|
— |
|
|
|
10 |
|
Net
revenue(3) |
|
|
550,655 |
|
|
|
502,930 |
|
|
|
429,743 |
|
9 |
|
|
|
28 |
|
Net
interest income |
|
|
456,816 |
|
|
|
401,448 |
|
|
|
295,976 |
|
14 |
|
|
|
54 |
|
Net
interest margin |
|
|
3.71 |
% |
|
|
3.34 |
% |
|
|
2.54 |
% |
37 |
|
bps |
|
117 |
bps |
Net
interest margin – fully taxable-equivalent
(non-GAAP)(2) |
|
|
3.73 |
|
|
|
3.35 |
|
|
|
2.55 |
|
38 |
|
|
|
118 |
|
Net
overhead ratio(4) |
|
|
1.63 |
|
|
|
1.53 |
|
|
|
1.21 |
|
10 |
|
|
|
42 |
|
Return on
average assets |
|
|
1.10 |
|
|
|
1.12 |
|
|
|
0.80 |
|
(2 |
) |
|
|
30 |
|
Return on
average common equity |
|
|
12.72 |
|
|
|
12.31 |
|
|
|
9.05 |
|
41 |
|
|
|
367 |
|
Return on average tangible common equity
(non-GAAP)(2) |
|
|
15.21 |
|
|
|
14.68 |
|
|
|
11.04 |
|
53 |
|
|
|
417 |
|
At end of period |
|
|
|
|
|
|
|
|
|
|
|
Total
assets |
|
$ |
52,949,649 |
|
|
$ |
52,382,939 |
|
|
$ |
50,142,143 |
|
4 |
|
% |
|
6 |
% |
Total
loans(5) |
|
|
39,196,485 |
|
|
|
38,167,613 |
|
|
|
34,789,104 |
|
11 |
|
|
|
13 |
|
Total
deposits |
|
|
42,902,544 |
|
|
|
42,797,191 |
|
|
|
42,095,585 |
|
1 |
|
|
|
2 |
|
Total shareholders’ equity |
|
|
4,796,838 |
|
|
|
4,637,980 |
|
|
|
4,498,688 |
|
14 |
|
|
|
7 |
|
(1) Period-end balance
sheet percentage changes are annualized.
(2) See Table 17: Supplemental
Non-GAAP Financial Measures/Ratios for additional information on
this performance measure/ratio.
(3) Net revenue is net interest
income plus non-interest income.
(4) The net overhead ratio is
calculated by netting total non-interest expense and total
non-interest income, annualizing this amount, and dividing by that
period’s average total assets. A lower ratio indicates a higher
degree of efficiency.
(5) Excludes mortgage loans
held-for-sale.
Certain returns, yields, performance ratios, or
quarterly growth rates are “annualized” in this presentation to
represent an annual time period. This is done for analytical
purposes to better discern, for decision-making purposes,
underlying performance trends when compared to full-year or
year-over-year amounts. For example, a 5% growth rate for a quarter
would represent an annualized 20% growth rate. Additional
supplemental financial information showing quarterly trends can be
found on the Company’s website at www.wintrust.com by
choosing “Financial Reports” under the “Investor Relations”
heading, and then choosing “Financial Highlights.”
WINTRUST FINANCIAL
CORPORATION
Selected Financial Highlights
|
|
Three Months Ended |
Years Ended |
(Dollars in thousands, except per share data) |
|
Dec 31,
2022 |
|
Sep 30,
2022 |
|
Jun 30,
2022 |
|
Mar 31,
2022 |
|
Dec 31,
2021 |
Dec 31,
2022 |
|
Dec 31,
2021 |
Selected Financial Condition Data (at end of
period): |
|
|
|
Total
assets |
|
$ |
52,949,649 |
|
|
$ |
52,382,939 |
|
|
$ |
50,969,332 |
|
|
$ |
50,250,661 |
|
|
$ |
50,142,143 |
|
|
|
|
Total
loans(1) |
|
|
39,196,485 |
|
|
|
38,167,613 |
|
|
|
37,053,103 |
|
|
|
35,280,547 |
|
|
|
34,789,104 |
|
|
|
|
Total
deposits |
|
|
42,902,544 |
|
|
|
42,797,191 |
|
|
|
42,593,326 |
|
|
|
42,219,322 |
|
|
|
42,095,585 |
|
|
|
|
Total shareholders’ equity |
|
|
4,796,838 |
|
|
|
4,637,980 |
|
|
|
4,727,623 |
|
|
|
4,492,256 |
|
|
|
4,498,688 |
|
|
|
|
Selected Statements of Income Data: |
|
|
|
Net interest income |
|
$ |
456,816 |
|
|
$ |
401,448 |
|
|
$ |
337,804 |
|
|
$ |
299,294 |
|
|
$ |
295,976 |
|
$ |
1,495,362 |
|
|
$ |
1,124,957 |
|
Net
revenue(2) |
|
|
550,655 |
|
|
|
502,930 |
|
|
|
440,746 |
|
|
|
462,084 |
|
|
|
429,743 |
|
|
1,956,415 |
|
|
|
1,711,077 |
|
Net
income |
|
|
144,817 |
|
|
|
142,961 |
|
|
|
94,513 |
|
|
|
127,391 |
|
|
|
98,757 |
|
|
509,682 |
|
|
|
466,151 |
|
Pre-tax
income, excluding provision for credit losses
(non-GAAP)(3) |
|
|
242,819 |
|
|
|
206,461 |
|
|
|
152,078 |
|
|
|
177,786 |
|
|
|
146,344 |
|
|
779,144 |
|
|
|
578,533 |
|
Net
income per common share – Basic |
|
|
2.27 |
|
|
|
2.24 |
|
|
|
1.51 |
|
|
|
2.11 |
|
|
|
1.61 |
|
|
8.14 |
|
|
|
7.69 |
|
Net
income per common share – Diluted |
|
|
2.23 |
|
|
|
2.21 |
|
|
|
1.49 |
|
|
|
2.07 |
|
|
|
1.58 |
|
|
8.02 |
|
|
|
7.58 |
|
Cash dividends declared per common share |
|
|
0.34 |
|
|
|
0.34 |
|
|
|
0.34 |
|
|
|
0.34 |
|
|
|
0.31 |
|
|
1.36 |
|
|
|
1.24 |
|
Selected Financial Ratios and Other Data: |
|
|
|
Performance Ratios: |
|
|
|
Net
interest margin |
|
|
3.71 |
% |
|
|
3.34 |
% |
|
|
2.92 |
% |
|
|
2.60 |
% |
|
|
2.54 |
% |
|
3.15 |
% |
|
|
2.57 |
% |
Net
interest margin – fully taxable-equivalent
(non-GAAP)(3) |
|
|
3.73 |
|
|
|
3.35 |
|
|
|
2.93 |
|
|
|
2.61 |
|
|
|
2.55 |
|
|
3.17 |
|
|
|
2.58 |
|
Non-interest income to average assets |
|
|
0.71 |
|
|
|
0.79 |
|
|
|
0.84 |
|
|
|
1.33 |
|
|
|
1.08 |
|
|
0.91 |
|
|
|
1.25 |
|
Non-interest expense to average assets |
|
|
2.34 |
|
|
|
2.32 |
|
|
|
2.35 |
|
|
|
2.33 |
|
|
|
2.29 |
|
|
2.33 |
|
|
|
2.42 |
|
Net
overhead ratio(4) |
|
|
1.63 |
|
|
|
1.53 |
|
|
|
1.51 |
|
|
|
1.00 |
|
|
|
1.21 |
|
|
1.42 |
|
|
|
1.17 |
|
Return on
average assets |
|
|
1.10 |
|
|
|
1.12 |
|
|
|
0.77 |
|
|
|
1.04 |
|
|
|
0.80 |
|
|
1.01 |
|
|
|
1.00 |
|
Return on
average common equity |
|
|
12.72 |
|
|
|
12.31 |
|
|
|
8.53 |
|
|
|
11.94 |
|
|
|
9.05 |
|
|
11.41 |
|
|
|
11.27 |
|
Return on
average tangible common equity (non-GAAP)(3) |
|
|
15.21 |
|
|
|
14.68 |
|
|
|
10.36 |
|
|
|
14.48 |
|
|
|
11.04 |
|
|
13.73 |
|
|
|
13.83 |
|
Average
total assets |
|
$ |
52,087,618 |
|
|
$ |
50,722,694 |
|
|
$ |
49,353,426 |
|
|
$ |
49,501,844 |
|
|
$ |
49,118,777 |
|
$ |
50,424,319 |
|
|
$ |
46,824,051 |
|
Average
total shareholders’ equity |
|
|
4,710,856 |
|
|
|
4,795,387 |
|
|
|
4,526,110 |
|
|
|
4,500,460 |
|
|
|
4,433,953 |
|
|
4,634,224 |
|
|
|
4,300,742 |
|
Average
loans to average deposits ratio |
|
|
90.5 |
% |
|
|
88.8 |
% |
|
|
86.8 |
% |
|
|
83.8 |
% |
|
|
81.7 |
% |
|
87.5 |
% |
|
|
84.7 |
% |
Period-end loans to deposits ratio |
|
|
91.4 |
|
|
|
89.2 |
|
|
|
87.0 |
|
|
|
83.6 |
|
|
|
82.6 |
|
|
|
|
Common Share Data at end of period: |
|
|
|
Market
price per common share |
|
$ |
84.52 |
|
|
$ |
81.55 |
|
|
$ |
80.15 |
|
|
$ |
92.93 |
|
|
$ |
90.82 |
|
|
|
|
Book
value per common share |
|
|
72.12 |
|
|
|
69.56 |
|
|
|
71.06 |
|
|
|
71.26 |
|
|
|
71.62 |
|
|
|
|
Tangible
book value per common share (non-GAAP)(3) |
|
|
61.00 |
|
|
|
58.42 |
|
|
|
59.87 |
|
|
|
59.34 |
|
|
|
59.64 |
|
|
|
|
Common shares outstanding |
|
|
60,794,008 |
|
|
|
60,743,335 |
|
|
|
60,721,889 |
|
|
|
57,253,214 |
|
|
|
57,054,091 |
|
|
|
|
Other
Data at end of period: |
|
|
|
Tier 1
leverage ratio(5) |
|
|
8.8 |
% |
|
|
8.8 |
% |
|
|
8.8 |
% |
|
|
8.1 |
% |
|
|
8.0 |
% |
|
|
|
Risk-based capital ratios: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Tier 1
capital ratio(5) |
|
|
10.0
|
|
|
|
9.9 |
|
|
|
9.9 |
|
|
|
9.6 |
|
|
|
9.6 |
|
|
|
|
Common
equity tier 1 capital ratio(5) |
|
|
9.1 |
|
|
|
9.0 |
|
|
|
9.0 |
|
|
|
8.6 |
|
|
|
8.6 |
|
|
|
|
Total
capital ratio(5) |
|
|
11.9 |
|
|
|
11.8 |
|
|
|
11.9 |
|
|
|
11.6 |
|
|
|
11.6 |
|
|
|
|
Allowance
for credit losses(6) |
|
$ |
357,936 |
|
|
$ |
315,338 |
|
|
$ |
312,192 |
|
|
$ |
301,327 |
|
|
$ |
299,731 |
|
|
|
|
Allowance
for loan and unfunded lending-related commitment losses to total
loans |
|
|
0.91 |
% |
|
|
0.83 |
% |
|
|
0.84 |
% |
|
|
0.85 |
% |
|
|
0.86 |
% |
|
|
|
Number
of: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Bank subsidiaries |
|
|
15 |
|
|
|
15 |
|
|
|
15 |
|
|
|
15 |
|
|
|
15 |
|
|
|
|
Banking offices |
|
|
174 |
|
|
|
174 |
|
|
|
173 |
|
|
|
174 |
|
|
|
173 |
|
|
|
|
(1) Excludes
mortgage loans held-for-sale.
(2) Net revenue is net interest
income and non-interest income.
(3) See Table 17:
Supplemental Non-GAAP Financial Measures/Ratios for additional
information on this performance measure/ratio.
(4) The net overhead ratio is
calculated by netting total non-interest expense and total
non-interest income, annualizing this amount, and dividing by that
period’s average total assets. A lower ratio indicates a higher
degree of efficiency.
(5) Capital ratios for current
quarter-end are estimated.
(6) The allowance for credit losses
includes the allowance for loan losses, the allowance for unfunded
lending-related commitments and the allowance for held-to-maturity
securities losses.
WINTRUST FINANCIAL CORPORATION
AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF
CONDITION
|
|
(Unaudited) |
|
(Unaudited) |
|
(Unaudited) |
|
(Unaudited) |
|
|
|
|
Dec 31, |
|
Sep 30, |
|
Jun 30, |
|
Mar 31, |
|
Dec 31, |
(In thousands) |
|
|
2022 |
|
|
|
2022 |
|
|
|
2022 |
|
|
|
2022 |
|
|
|
2021 |
|
Assets |
|
|
|
|
|
|
|
|
|
|
Cash and
due from banks |
|
$ |
490,908 |
|
|
$ |
489,590 |
|
|
$ |
498,891 |
|
|
$ |
462,516 |
|
|
$ |
411,150 |
|
Federal
funds sold and securities purchased under resale agreements |
|
|
58 |
|
|
|
57 |
|
|
|
475,056 |
|
|
|
700,056 |
|
|
|
700,055 |
|
Interest-bearing deposits with banks |
|
|
1,988,719 |
|
|
|
3,968,605 |
|
|
|
3,266,541 |
|
|
|
4,013,597 |
|
|
|
5,372,603 |
|
Available-for-sale securities, at fair value |
|
|
3,243,017 |
|
|
|
2,923,653 |
|
|
|
2,970,121 |
|
|
|
2,998,898 |
|
|
|
2,327,793 |
|
Held-to-maturity securities, at amortized cost |
|
|
3,640,567 |
|
|
|
3,389,842 |
|
|
|
3,413,469 |
|
|
|
3,435,729 |
|
|
|
2,942,285 |
|
Trading
account securities |
|
|
1,127 |
|
|
|
179 |
|
|
|
1,010 |
|
|
|
852 |
|
|
|
1,061 |
|
Equity
securities with readily determinable fair value |
|
|
110,365 |
|
|
|
114,012 |
|
|
|
93,295 |
|
|
|
92,689 |
|
|
|
90,511 |
|
Federal
Home Loan Bank and Federal Reserve Bank stock |
|
|
224,759 |
|
|
|
178,156 |
|
|
|
136,138 |
|
|
|
136,163 |
|
|
|
135,378 |
|
Brokerage
customer receivables |
|
|
16,387 |
|
|
|
20,327 |
|
|
|
21,527 |
|
|
|
22,888 |
|
|
|
26,068 |
|
Mortgage
loans held-for-sale |
|
|
299,935 |
|
|
|
376,160 |
|
|
|
513,232 |
|
|
|
606,545 |
|
|
|
817,912 |
|
Loans,
net of unearned income |
|
|
39,196,485 |
|
|
|
38,167,613 |
|
|
|
37,053,103 |
|
|
|
35,280,547 |
|
|
|
34,789,104 |
|
Allowance
for loan losses |
|
|
(270,173 |
) |
|
|
(246,110 |
) |
|
|
(251,769 |
) |
|
|
(250,539 |
) |
|
|
(247,835 |
) |
Net loans |
|
|
38,926,312 |
|
|
|
37,921,503 |
|
|
|
36,801,334 |
|
|
|
35,030,008 |
|
|
|
34,541,269 |
|
Premises,
software and equipment, net |
|
|
764,798 |
|
|
|
763,029 |
|
|
|
762,381 |
|
|
|
761,213 |
|
|
|
766,405 |
|
Lease
investments, net |
|
|
253,928 |
|
|
|
244,822 |
|
|
|
223,813 |
|
|
|
240,656 |
|
|
|
242,082 |
|
Accrued
interest receivable and other assets |
|
|
1,391,342 |
|
|
|
1,316,305 |
|
|
|
1,112,697 |
|
|
|
1,066,750 |
|
|
|
1,084,115 |
|
Trade
date securities receivable |
|
|
921,717 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Goodwill |
|
|
653,524 |
|
|
|
653,079 |
|
|
|
654,709 |
|
|
|
655,402 |
|
|
|
655,149 |
|
Other
acquisition-related intangible assets |
|
|
22,186 |
|
|
|
23,620 |
|
|
|
25,118 |
|
|
|
26,699 |
|
|
|
28,307 |
|
Total assets |
|
$ |
52,949,649 |
|
|
$ |
52,382,939 |
|
|
$ |
50,969,332 |
|
|
$ |
50,250,661 |
|
|
$ |
50,142,143 |
|
Liabilities and Shareholders’ Equity |
|
|
|
|
|
|
|
|
|
|
Deposits: |
|
|
|
|
|
|
|
|
|
|
Non-interest-bearing |
|
$ |
12,668,160 |
|
|
$ |
13,529,277 |
|
|
$ |
13,855,844 |
|
|
$ |
13,748,918 |
|
|
$ |
14,179,980 |
|
Interest-bearing |
|
|
30,234,384 |
|
|
|
29,267,914 |
|
|
|
28,737,482 |
|
|
|
28,470,404 |
|
|
|
27,915,605 |
|
Total deposits |
|
|
42,902,544 |
|
|
|
42,797,191 |
|
|
|
42,593,326 |
|
|
|
42,219,322 |
|
|
|
42,095,585 |
|
Federal
Home Loan Bank advances |
|
|
2,316,071 |
|
|
|
2,316,071 |
|
|
|
1,166,071 |
|
|
|
1,241,071 |
|
|
|
1,241,071 |
|
Other
borrowings |
|
|
596,614 |
|
|
|
447,215 |
|
|
|
482,787 |
|
|
|
482,516 |
|
|
|
494,136 |
|
Subordinated notes |
|
|
437,392 |
|
|
|
437,260 |
|
|
|
437,162 |
|
|
|
437,033 |
|
|
|
436,938 |
|
Junior
subordinated debentures |
|
|
253,566 |
|
|
|
253,566 |
|
|
|
253,566 |
|
|
|
253,566 |
|
|
|
253,566 |
|
Trade
date securities payable |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
437 |
|
|
|
— |
|
Accrued
interest payable and other liabilities |
|
|
1,646,624 |
|
|
|
1,493,656 |
|
|
|
1,308,797 |
|
|
|
1,124,460 |
|
|
|
1,122,159 |
|
Total liabilities |
|
|
48,152,811 |
|
|
|
47,744,959 |
|
|
|
46,241,709 |
|
|
|
45,758,405 |
|
|
|
45,643,455 |
|
Shareholders’ Equity: |
|
|
|
|
|
|
|
|
|
|
Preferred stock |
|
|
412,500 |
|
|
|
412,500 |
|
|
|
412,500 |
|
|
|
412,500 |
|
|
|
412,500 |
|
Common stock |
|
|
60,797 |
|
|
|
60,743 |
|
|
|
60,722 |
|
|
|
59,091 |
|
|
|
58,892 |
|
Surplus |
|
|
1,902,474 |
|
|
|
1,891,621 |
|
|
|
1,880,913 |
|
|
|
1,698,093 |
|
|
|
1,685,572 |
|
Treasury stock |
|
|
(304 |
) |
|
|
— |
|
|
|
— |
|
|
|
(109,903 |
) |
|
|
(109,903 |
) |
Retained earnings |
|
|
2,849,007 |
|
|
|
2,731,844 |
|
|
|
2,616,525 |
|
|
|
2,548,474 |
|
|
|
2,447,535 |
|
Accumulated other comprehensive (loss) income |
|
|
(427,636 |
) |
|
|
(458,728 |
) |
|
|
(243,037 |
) |
|
|
(115,999 |
) |
|
|
4,092 |
|
Total shareholders’ equity |
|
|
4,796,838 |
|
|
|
4,637,980 |
|
|
|
4,727,623 |
|
|
|
4,492,256 |
|
|
|
4,498,688 |
|
Total liabilities and shareholders’ equity |
|
$ |
52,949,649 |
|
|
$ |
52,382,939 |
|
|
$ |
50,969,332 |
|
|
$ |
50,250,661 |
|
|
$ |
50,142,143 |
|
WINTRUST FINANCIAL CORPORATION AND
SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME
(UNAUDITED)
|
Three Months Ended |
Years Ended |
(In
thousands, except per share data) |
Dec 31,
2022 |
|
Sep 30,
2022 |
|
Jun 30,
2022 |
|
Mar 31,
2022 |
|
Dec 31,
2021 |
Dec 31,
2022 |
|
Dec 31,
2021 |
Interest income |
|
|
|
|
|
|
|
|
|
|
|
|
Interest and fees on loans |
$ |
498,838 |
|
|
$ |
402,689 |
|
|
$ |
320,501 |
|
|
$ |
285,698 |
|
|
$ |
289,140 |
|
$ |
1,507,726 |
|
|
$ |
1,133,528 |
|
Mortgage loans held-for-sale |
|
3,997 |
|
|
|
5,371 |
|
|
|
5,740 |
|
|
|
6,087 |
|
|
|
7,234 |
|
|
21,195 |
|
|
|
32,169 |
|
Interest-bearing deposits with banks |
|
20,349 |
|
|
|
15,621 |
|
|
|
5,790 |
|
|
|
1,687 |
|
|
|
2,254 |
|
|
43,447 |
|
|
|
6,606 |
|
Federal funds sold and securities purchased under resale
agreements |
|
1,263 |
|
|
|
1,845 |
|
|
|
1,364 |
|
|
|
431 |
|
|
|
173 |
|
|
4,903 |
|
|
|
173 |
|
Investment securities |
|
53,092 |
|
|
|
38,569 |
|
|
|
36,541 |
|
|
|
32,398 |
|
|
|
27,210 |
|
|
160,600 |
|
|
|
95,286 |
|
Trading account securities |
|
6 |
|
|
|
7 |
|
|
|
4 |
|
|
|
5 |
|
|
|
4 |
|
|
22 |
|
|
|
10 |
|
Federal Home Loan Bank and Federal Reserve Bank stock |
|
2,918 |
|
|
|
2,109 |
|
|
|
1,823 |
|
|
|
1,772 |
|
|
|
1,776 |
|
|
8,622 |
|
|
|
7,067 |
|
Brokerage customer receivables |
|
282 |
|
|
|
267 |
|
|
|
205 |
|
|
|
174 |
|
|
|
188 |
|
|
928 |
|
|
|
645 |
|
Total interest income |
|
580,745 |
|
|
|
466,478 |
|
|
|
371,968 |
|
|
|
328,252 |
|
|
|
327,979 |
|
|
1,747,443 |
|
|
|
1,275,484 |
|
Interest expense |
|
|
|
|
|
|
|
|
|
|
|
|
Interest on deposits |
|
95,447 |
|
|
|
45,916 |
|
|
|
18,985 |
|
|
|
14,854 |
|
|
|
16,572 |
|
|
175,202 |
|
|
|
88,119 |
|
Interest on Federal Home Loan Bank advances |
|
13,823 |
|
|
|
6,812 |
|
|
|
4,878 |
|
|
|
4,816 |
|
|
|
4,923 |
|
|
30,329 |
|
|
|
19,581 |
|
Interest on other borrowings |
|
5,313 |
|
|
|
4,008 |
|
|
|
2,734 |
|
|
|
2,239 |
|
|
|
2,250 |
|
|
14,294 |
|
|
|
9,928 |
|
Interest on subordinated notes |
|
5,520 |
|
|
|
5,485 |
|
|
|
5,517 |
|
|
|
5,482 |
|
|
|
5,514 |
|
|
22,004 |
|
|
|
21,983 |
|
Interest on junior subordinated debentures |
|
3,826 |
|
|
|
2,809 |
|
|
|
2,050 |
|
|
|
1,567 |
|
|
|
2,744 |
|
|
10,252 |
|
|
|
10,916 |
|
Total interest expense |
|
123,929 |
|
|
|
65,030 |
|
|
|
34,164 |
|
|
|
28,958 |
|
|
|
32,003 |
|
|
252,081 |
|
|
|
150,527 |
|
Net interest income |
|
456,816 |
|
|
|
401,448 |
|
|
|
337,804 |
|
|
|
299,294 |
|
|
|
295,976 |
|
|
1,495,362 |
|
|
|
1,124,957 |
|
Provision for credit losses |
|
47,646 |
|
|
|
6,420 |
|
|
|
20,417 |
|
|
|
4,106 |
|
|
|
9,299 |
|
|
78,589 |
|
|
|
(59,263 |
) |
Net interest income after provision for credit losses |
|
409,170 |
|
|
|
395,028 |
|
|
|
317,387 |
|
|
|
295,188 |
|
|
|
286,677 |
|
|
1,416,773 |
|
|
|
1,184,220 |
|
Non-interest income |
|
|
|
|
|
|
|
|
|
|
|
|
Wealth management |
|
30,727 |
|
|
|
33,124 |
|
|
|
31,369 |
|
|
|
31,394 |
|
|
|
32,489 |
|
|
126,614 |
|
|
|
124,019 |
|
Mortgage banking |
|
17,407 |
|
|
|
27,221 |
|
|
|
33,314 |
|
|
|
77,231 |
|
|
|
53,138 |
|
|
155,173 |
|
|
|
273,010 |
|
Service charges on deposit accounts |
|
13,054 |
|
|
|
14,349 |
|
|
|
15,888 |
|
|
|
15,283 |
|
|
|
14,734 |
|
|
58,574 |
|
|
|
54,168 |
|
Losses on investment securities, net |
|
(6,745 |
) |
|
|
(3,103 |
) |
|
|
(7,797 |
) |
|
|
(2,782 |
) |
|
|
(1,067 |
) |
|
(20,427 |
) |
|
|
(1,059 |
) |
Fees from covered call options |
|
7,956 |
|
|
|
1,366 |
|
|
|
1,069 |
|
|
|
3,742 |
|
|
|
1,128 |
|
|
14,133 |
|
|
|
3,673 |
|
Trading (losses) gains, net |
|
(306 |
) |
|
|
(7 |
) |
|
|
176 |
|
|
|
3,889 |
|
|
|
206 |
|
|
3,752 |
|
|
|
245 |
|
Operating lease income, net |
|
12,384 |
|
|
|
12,644 |
|
|
|
15,007 |
|
|
|
15,475 |
|
|
|
14,204 |
|
|
55,510 |
|
|
|
53,691 |
|
Other |
|
19,362 |
|
|
|
15,888 |
|
|
|
13,916 |
|
|
|
18,558 |
|
|
|
18,935 |
|
|
67,724 |
|
|
|
78,373 |
|
Total non-interest income |
|
93,839 |
|
|
|
101,482 |
|
|
|
102,942 |
|
|
|
162,790 |
|
|
|
133,767 |
|
|
461,053 |
|
|
|
586,120 |
|
Non-interest expense |
|
|
|
|
|
|
|
|
|
|
|
|
Salaries and employee benefits |
|
180,331 |
|
|
|
176,095 |
|
|
|
167,326 |
|
|
|
172,355 |
|
|
|
167,131 |
|
|
696,107 |
|
|
|
691,669 |
|
Software and equipment |
|
24,699 |
|
|
|
24,126 |
|
|
|
24,250 |
|
|
|
22,810 |
|
|
|
23,708 |
|
|
95,885 |
|
|
|
87,515 |
|
Operating lease equipment |
|
10,078 |
|
|
|
9,448 |
|
|
|
8,774 |
|
|
|
9,708 |
|
|
|
10,147 |
|
|
38,008 |
|
|
|
40,880 |
|
Occupancy, net |
|
17,763 |
|
|
|
17,727 |
|
|
|
17,651 |
|
|
|
17,824 |
|
|
|
18,343 |
|
|
70,965 |
|
|
|
74,184 |
|
Data processing |
|
7,927 |
|
|
|
7,767 |
|
|
|
8,010 |
|
|
|
7,505 |
|
|
|
7,207 |
|
|
31,209 |
|
|
|
27,279 |
|
Advertising and marketing |
|
14,279 |
|
|
|
16,600 |
|
|
|
16,615 |
|
|
|
11,924 |
|
|
|
13,981 |
|
|
59,418 |
|
|
|
47,275 |
|
Professional fees |
|
9,267 |
|
|
|
7,544 |
|
|
|
7,876 |
|
|
|
8,401 |
|
|
|
7,551 |
|
|
33,088 |
|
|
|
29,494 |
|
Amortization of other acquisition-related intangible assets |
|
1,436 |
|
|
|
1,492 |
|
|
|
1,579 |
|
|
|
1,609 |
|
|
|
1,811 |
|
|
6,116 |
|
|
|
7,734 |
|
FDIC insurance |
|
6,775 |
|
|
|
7,186 |
|
|
|
6,949 |
|
|
|
7,729 |
|
|
|
7,317 |
|
|
28,639 |
|
|
|
27,030 |
|
OREO expense, net |
|
369 |
|
|
|
229 |
|
|
|
294 |
|
|
|
(1,032 |
) |
|
|
(641 |
) |
|
(140 |
) |
|
|
(1,654 |
) |
Other |
|
34,912 |
|
|
|
28,255 |
|
|
|
29,344 |
|
|
|
25,465 |
|
|
|
26,844 |
|
|
117,976 |
|
|
|
101,138 |
|
Total non-interest expense |
|
307,836 |
|
|
|
296,469 |
|
|
|
288,668 |
|
|
|
284,298 |
|
|
|
283,399 |
|
|
1,177,271 |
|
|
|
1,132,544 |
|
Income before taxes |
|
195,173 |
|
|
|
200,041 |
|
|
|
131,661 |
|
|
|
173,680 |
|
|
|
137,045 |
|
|
700,555 |
|
|
|
637,796 |
|
Income tax expense |
|
50,356 |
|
|
|
57,080 |
|
|
|
37,148 |
|
|
|
46,289 |
|
|
|
38,288 |
|
|
190,873 |
|
|
|
171,645 |
|
Net income |
$ |
144,817 |
|
|
$ |
142,961 |
|
|
$ |
94,513 |
|
|
$ |
127,391 |
|
|
$ |
98,757 |
|
$ |
509,682 |
|
|
$ |
466,151 |
|
Preferred stock dividends |
|
6,991 |
|
|
|
6,991 |
|
|
|
6,991 |
|
|
|
6,991 |
|
|
|
6,991 |
|
|
27,964 |
|
|
|
27,964 |
|
Net income applicable to common shares |
$ |
137,826 |
|
|
$ |
135,970 |
|
|
$ |
87,522 |
|
|
$ |
120,400 |
|
|
$ |
91,766 |
|
$ |
481,718 |
|
|
$ |
438,187 |
|
Net income per common share - Basic |
$ |
2.27 |
|
|
$ |
2.24 |
|
|
$ |
1.51 |
|
|
$ |
2.11 |
|
|
$ |
1.61 |
|
$ |
8.14 |
|
|
$ |
7.69 |
|
Net income per common share - Diluted |
$ |
2.23 |
|
|
$ |
2.21 |
|
|
$ |
1.49 |
|
|
$ |
2.07 |
|
|
$ |
1.58 |
|
$ |
8.02 |
|
|
$ |
7.58 |
|
Cash dividends declared per common share |
$ |
0.34 |
|
|
$ |
0.34 |
|
|
$ |
0.34 |
|
|
$ |
0.34 |
|
|
$ |
0.31 |
|
$ |
1.36 |
|
|
$ |
1.24 |
|
Weighted average common shares outstanding |
|
60,769 |
|
|
|
60,738 |
|
|
|
58,063 |
|
|
|
57,196 |
|
|
|
57,022 |
|
|
59,205 |
|
|
|
56,994 |
|
Dilutive potential common shares |
|
1,096 |
|
|
|
837 |
|
|
|
775 |
|
|
|
862 |
|
|
|
976 |
|
|
886 |
|
|
|
792 |
|
Average common shares and dilutive common shares |
|
61,865 |
|
|
|
61,575 |
|
|
|
58,838 |
|
|
|
58,058 |
|
|
|
57,998 |
|
|
60,091 |
|
|
|
57,786 |
|
TABLE 1: LOAN PORTFOLIO MIX AND GROWTH
RATES
|
|
|
|
|
|
|
|
|
|
% Growth From(1) |
(Dollars in thousands) |
Dec 31,
2022 |
|
Sep 30,
2022 |
|
Jun 30,
2022 |
|
Mar 31,
2022 |
|
Dec 31,
2021 |
Sep 30,
2022(2) |
|
Dec 31,
2021 |
Balance: |
|
|
|
|
|
|
|
|
|
|
|
|
Mortgage loans held-for-sale, excluding early buy-out exercised
loans guaranteed by U.S. government agencies |
$ |
156,297 |
|
$ |
216,062 |
|
$ |
294,688 |
|
$ |
296,548 |
|
$ |
473,102 |
NM |
|
|
(67 |
)% |
Mortgage loans held-for-sale, early buy-out exercised loans
guaranteed by U.S. government agencies |
|
143,638 |
|
|
160,098 |
|
|
218,544 |
|
|
309,997 |
|
|
344,810 |
(41 |
) |
|
(58 |
) |
Total mortgage loans held-for-sale |
$ |
299,935 |
|
$ |
376,160 |
|
$ |
513,232 |
|
$ |
606,545 |
|
$ |
817,912 |
(80 |
)% |
|
(63 |
)% |
|
|
|
|
|
|
|
|
|
|
|
|
|
Core loans: |
|
|
|
|
|
|
|
|
|
|
|
|
Commercial |
|
|
|
|
|
|
|
|
|
|
|
|
Commercial and industrial |
$ |
5,852,166 |
|
$ |
5,818,959 |
|
$ |
5,502,584 |
|
$ |
5,348,266 |
|
$ |
5,346,084 |
2 |
% |
|
9 |
% |
Asset-based lending |
|
1,473,344 |
|
|
1,545,038 |
|
|
1,552,033 |
|
|
1,365,297 |
|
|
1,299,869 |
(18 |
) |
|
13 |
|
Municipal |
|
668,235 |
|
|
608,234 |
|
|
535,586 |
|
|
533,357 |
|
|
536,498 |
39 |
|
|
25 |
|
Leases |
|
1,840,928 |
|
|
1,582,359 |
|
|
1,592,329 |
|
|
1,481,368 |
|
|
1,454,099 |
65 |
|
|
27 |
|
Commercial real estate |
|
|
|
|
|
|
|
|
|
|
|
|
Residential construction |
|
76,877 |
|
|
66,957 |
|
|
55,941 |
|
|
57,037 |
|
|
51,464 |
59 |
|
|
49 |
|
Commercial construction |
|
1,102,098 |
|
|
1,176,407 |
|
|
1,145,602 |
|
|
1,055,972 |
|
|
1,034,988 |
(25 |
) |
|
6 |
|
Land |
|
307,955 |
|
|
282,147 |
|
|
304,775 |
|
|
283,397 |
|
|
269,752 |
36 |
|
|
14 |
|
Office |
|
1,337,176 |
|
|
1,269,729 |
|
|
1,321,745 |
|
|
1,273,705 |
|
|
1,285,686 |
21 |
|
|
4 |
|
Industrial |
|
1,836,276 |
|
|
1,777,658 |
|
|
1,746,280 |
|
|
1,668,516 |
|
|
1,585,808 |
13 |
|
|
16 |
|
Retail |
|
1,304,444 |
|
|
1,331,316 |
|
|
1,331,059 |
|
|
1,395,021 |
|
|
1,429,567 |
(8 |
) |
|
(9 |
) |
Multi-family |
|
2,560,709 |
|
|
2,305,433 |
|
|
2,171,583 |
|
|
2,175,875 |
|
|
2,043,754 |
44 |
|
|
25 |
|
Mixed use and other |
|
1,425,412 |
|
|
1,368,537 |
|
|
1,330,220 |
|
|
1,325,551 |
|
|
1,289,267 |
16 |
|
|
11 |
|
Home equity |
|
332,698 |
|
|
328,822 |
|
|
325,826 |
|
|
321,435 |
|
|
335,155 |
5 |
|
|
(1 |
) |
Residential real estate |
|
|
|
|
|
|
|
|
|
|
|
|
Residential real estate loans for investment |
|
2,207,595 |
|
|
2,086,795 |
|
|
1,965,051 |
|
|
1,749,889 |
|
|
1,606,271 |
23 |
|
|
37 |
|
Residential mortgage loans, early buy-out eligible loans guaranteed
by U.S. government agencies |
|
80,701 |
|
|
57,161 |
|
|
34,764 |
|
|
13,520 |
|
|
22,707 |
NM |
|
|
NM |
|
Residential mortgage loans, early buy-out exercised loans
guaranteed by U.S. government agencies |
|
84,087 |
|
|
91,503 |
|
|
79,092 |
|
|
36,576 |
|
|
8,121 |
(32 |
) |
|
NM |
|
Total core loans |
$ |
22,490,701 |
|
$ |
21,697,055 |
|
$ |
20,994,470 |
|
$ |
20,084,782 |
|
$ |
19,599,090 |
15 |
% |
|
15 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
Niche loans: |
|
|
|
|
|
|
|
|
|
|
|
|
Commercial |
|
|
|
|
|
|
|
|
|
|
|
|
Franchise |
$ |
1,169,623 |
|
$ |
1,118,478 |
|
$ |
1,136,929 |
|
$ |
1,181,761 |
|
$ |
1,227,234 |
18 |
% |
|
(5 |
)% |
Mortgage warehouse lines of credit |
|
237,392 |
|
|
297,374 |
|
|
398,085 |
|
|
261,847 |
|
|
359,818 |
(80 |
) |
|
(34 |
) |
Community Advantage - homeowners association |
|
380,875 |
|
|
365,967 |
|
|
341,095 |
|
|
324,383 |
|
|
308,286 |
16 |
|
|
24 |
|
Insurance agency lending |
|
897,678 |
|
|
879,183 |
|
|
906,375 |
|
|
833,720 |
|
|
813,897 |
8 |
|
|
10 |
|
Premium Finance receivables |
|
|
|
|
|
|
|
|
|
|
|
|
U.S. property & casualty insurance |
|
5,103,820 |
|
|
4,983,795 |
|
|
4,781,042 |
|
|
4,271,828 |
|
|
4,178,474 |
10 |
|
|
22 |
|
Canada property & casualty insurance |
|
745,639 |
|
|
729,545 |
|
|
760,405 |
|
|
665,580 |
|
|
677,013 |
9 |
|
|
10 |
|
Life insurance |
|
8,090,998 |
|
|
8,004,856 |
|
|
7,608,433 |
|
|
7,354,163 |
|
|
7,042,810 |
4 |
|
|
15 |
|
Consumer and other |
|
50,836 |
|
|
47,702 |
|
|
44,180 |
|
|
48,519 |
|
|
24,199 |
26 |
|
|
NM |
|
Total niche loans |
$ |
16,676,861 |
|
$ |
16,426,900 |
|
$ |
15,976,544 |
|
$ |
14,941,801 |
|
$ |
14,631,731 |
6 |
% |
|
14 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial PPP loans: |
|
|
|
|
|
|
|
|
|
|
|
|
Originated in 2020 |
$ |
7,898 |
|
$ |
8,724 |
|
$ |
18,547 |
|
$ |
40,016 |
|
$ |
74,412 |
(38 |
)% |
|
(89 |
)% |
Originated in 2021 |
|
21,025 |
|
|
34,934 |
|
|
63,542 |
|
|
213,948 |
|
|
483,871 |
NM |
|
|
(96 |
) |
Total commercial PPP loans |
$ |
28,923 |
|
$ |
43,658 |
|
$ |
82,089 |
|
$ |
253,964 |
|
$ |
558,283 |
NM |
|
|
(95 |
)% |
|
|
|
|
|
|
|
|
|
|
|
|
|
Total loans, net of unearned income |
$ |
39,196,485 |
|
$ |
38,167,613 |
|
$ |
37,053,103 |
|
$ |
35,280,547 |
|
$ |
34,789,104 |
11 |
% |
|
13 |
% |
(1) NM - Not
meaningful.
(2) Annualized
TABLE 2: DEPOSIT
PORTFOLIO MIX AND GROWTH RATES
|
|
|
|
|
|
|
|
|
|
% Growth From |
(Dollars in thousands) |
Dec 31,
2022 |
|
Sep 30,
2022 |
|
Jun 30,
2022 |
|
Mar 31,
2022 |
|
Dec 31,
2021 |
Sep 30,
2022(1) |
|
Dec 31,
2021 |
Balance: |
|
|
|
|
|
|
|
|
|
|
|
|
Non-interest-bearing |
$ |
12,668,160 |
|
|
$ |
13,529,277 |
|
|
$ |
13,855,844 |
|
|
$ |
13,748,918 |
|
|
$ |
14,179,980 |
|
(25 |
)% |
|
(11 |
)% |
NOW and interest-bearing demand deposits |
|
5,591,986 |
|
|
|
5,676,122 |
|
|
|
5,918,908 |
|
|
|
5,089,724 |
|
|
|
4,646,944 |
|
(6 |
) |
|
20 |
|
Wealth management deposits(2) |
|
2,463,833 |
|
|
|
2,988,195 |
|
|
|
3,182,407 |
|
|
|
2,542,995 |
|
|
|
2,612,759 |
|
(70 |
) |
|
(6 |
) |
Money market |
|
12,886,795 |
|
|
|
12,538,489 |
|
|
|
12,273,350 |
|
|
|
13,012,460 |
|
|
|
12,840,432 |
|
11 |
|
|
— |
|
Savings |
|
4,556,635 |
|
|
|
3,988,790 |
|
|
|
3,686,596 |
|
|
|
4,089,230 |
|
|
|
3,846,681 |
|
56 |
|
|
18 |
|
Time certificates of deposit |
|
4,735,135 |
|
|
|
4,076,318 |
|
|
|
3,676,221 |
|
|
|
3,735,995 |
|
|
|
3,968,789 |
|
64 |
|
|
19 |
|
Total deposits |
$ |
42,902,544 |
|
|
$ |
42,797,191 |
|
|
$ |
42,593,326 |
|
|
$ |
42,219,322 |
|
|
$ |
42,095,585 |
|
1 |
% |
|
2 |
% |
Mix: |
|
|
|
|
|
|
|
|
|
|
|
|
Non-interest-bearing |
|
30 |
% |
|
|
32 |
% |
|
|
33 |
% |
|
|
32 |
% |
|
|
34 |
% |
|
|
|
NOW and interest-bearing demand deposits |
|
13 |
|
|
|
13 |
|
|
|
13 |
|
|
|
12 |
|
|
|
11 |
|
|
|
|
Wealth management deposits(2) |
|
5 |
|
|
|
7 |
|
|
|
7 |
|
|
|
6 |
|
|
|
6 |
|
|
|
|
Money market |
|
30 |
|
|
|
29 |
|
|
|
29 |
|
|
|
31 |
|
|
|
31 |
|
|
|
|
Savings |
|
11 |
|
|
|
9 |
|
|
|
9 |
|
|
|
10 |
|
|
|
9 |
|
|
|
|
Time certificates of deposit |
|
11 |
|
|
|
10 |
|
|
|
9 |
|
|
|
9 |
|
|
|
9 |
|
|
|
|
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 December 31, 2022
(Dollars in thousands) |
|
Total Time
Certificates of
Deposit |
|
Weighted-Average
Rate of Maturing
Time Certificates
of Deposit(1) |
1-3 months |
|
$ |
988,118 |
|
2.04 |
% |
4-6 months |
|
|
929,448 |
|
1.89 |
|
7-9 months |
|
|
815,885 |
|
1.56 |
|
10-12 months |
|
|
894,365 |
|
2.06 |
|
13-18 months |
|
|
654,059 |
|
2.32 |
|
19-24 months |
|
|
233,827 |
|
2.03 |
|
24+ months |
|
|
219,433 |
|
2.20 |
|
Total |
|
$ |
4,735,135 |
|
1.98 |
% |
(1) Weighted-average rate excludes
the impact of purchase accounting fair value adjustments.
TABLE 4: QUARTERLY AVERAGE BALANCES
|
|
Average Balance for three months ended, |
|
|
Dec 31, |
|
Sep 30, |
|
Jun 30, |
|
Mar 31, |
|
Dec 31, |
(In thousands) |
|
|
2022 |
|
|
|
2022 |
|
|
|
2022 |
|
|
|
2022 |
|
|
|
2021 |
|
Interest-bearing deposits with banks, securities purchased under
resale agreements and cash equivalents(1) |
|
$ |
2,449,889 |
|
|
$ |
3,039,907 |
|
|
$ |
3,265,607 |
|
|
$ |
4,563,726 |
|
|
$ |
6,148,165 |
|
Investment securities(2) |
|
|
7,310,383 |
|
|
|
6,655,215 |
|
|
|
6,589,947 |
|
|
|
6,378,022 |
|
|
|
5,317,351 |
|
FHLB and FRB stock |
|
|
185,290 |
|
|
|
142,304 |
|
|
|
136,930 |
|
|
|
135,912 |
|
|
|
135,414 |
|
Liquidity management assets(3) |
|
|
9,945,562 |
|
|
|
9,837,426 |
|
|
|
9,992,484 |
|
|
|
11,077,660 |
|
|
|
11,600,930 |
|
Other earning assets(3)(4) |
|
|
18,585 |
|
|
|
21,805 |
|
|
|
24,059 |
|
|
|
25,192 |
|
|
|
28,298 |
|
Mortgage loans held-for-sale |
|
|
308,639 |
|
|
|
455,342 |
|
|
|
560,707 |
|
|
|
664,019 |
|
|
|
827,672 |
|
Loans, net of unearned income(3)(5) |
|
|
38,566,871 |
|
|
|
37,431,126 |
|
|
|
35,860,329 |
|
|
|
34,830,520 |
|
|
|
33,677,777 |
|
Total earning assets(3) |
|
|
48,839,657 |
|
|
|
47,745,699 |
|
|
|
46,437,579 |
|
|
|
46,597,391 |
|
|
|
46,134,677 |
|
Allowance for loan and investment security losses |
|
|
(252,827 |
) |
|
|
(260,270 |
) |
|
|
(260,547 |
) |
|
|
(253,080 |
) |
|
|
(254,874 |
) |
Cash and due from banks |
|
|
475,691 |
|
|
|
458,263 |
|
|
|
476,741 |
|
|
|
481,634 |
|
|
|
468,331 |
|
Other assets |
|
|
3,025,097 |
|
|
|
2,779,002 |
|
|
|
2,699,653 |
|
|
|
2,675,899 |
|
|
|
2,770,643 |
|
Total assets |
|
$ |
52,087,618 |
|
|
$ |
50,722,694 |
|
|
$ |
49,353,426 |
|
|
$ |
49,501,844 |
|
|
$ |
49,118,777 |
|
|
|
|
|
|
|
|
|
|
|
|
NOW and interest-bearing demand deposits |
|
$ |
5,598,291 |
|
|
$ |
5,789,368 |
|
|
$ |
5,230,702 |
|
|
$ |
4,788,272 |
|
|
$ |
4,439,242 |
|
Wealth management deposits |
|
|
2,883,247 |
|
|
|
3,078,764 |
|
|
|
2,835,267 |
|
|
|
2,505,800 |
|
|
|
2,646,879 |
|
Money market accounts |
|
|
12,319,842 |
|
|
|
12,037,412 |
|
|
|
11,892,948 |
|
|
|
12,773,805 |
|
|
|
12,665,167 |
|
Savings accounts |
|
|
4,403,113 |
|
|
|
3,862,579 |
|
|
|
3,882,856 |
|
|
|
3,904,299 |
|
|
|
3,766,037 |
|
Time deposits |
|
|
4,023,232 |
|
|
|
3,675,930 |
|
|
|
3,687,778 |
|
|
|
3,861,371 |
|
|
|
4,058,282 |
|
Interest-bearing deposits |
|
|
29,227,725 |
|
|
|
28,444,053 |
|
|
|
27,529,551 |
|
|
|
27,833,547 |
|
|
|
27,575,607 |
|
Federal Home Loan Bank advances |
|
|
2,088,201 |
|
|
|
1,403,573 |
|
|
|
1,197,390 |
|
|
|
1,241,071 |
|
|
|
1,241,073 |
|
Other borrowings |
|
|
480,553 |
|
|
|
478,909 |
|
|
|
489,779 |
|
|
|
494,267 |
|
|
|
501,933 |
|
Subordinated notes |
|
|
437,312 |
|
|
|
437,191 |
|
|
|
437,084 |
|
|
|
436,966 |
|
|
|
436,861 |
|
Junior subordinated debentures |
|
|
253,566 |
|
|
|
253,566 |
|
|
|
253,566 |
|
|
|
253,566 |
|
|
|
253,566 |
|
Total interest-bearing liabilities |
|
|
32,487,357 |
|
|
|
31,017,292 |
|
|
|
29,907,370 |
|
|
|
30,259,417 |
|
|
|
30,009,040 |
|
Non-interest-bearing deposits |
|
|
13,404,036 |
|
|
|
13,731,219 |
|
|
|
13,805,128 |
|
|
|
13,734,064 |
|
|
|
13,640,270 |
|
Other liabilities |
|
|
1,485,369 |
|
|
|
1,178,796 |
|
|
|
1,114,818 |
|
|
|
1,007,903 |
|
|
|
1,035,514 |
|
Equity |
|
|
4,710,856 |
|
|
|
4,795,387 |
|
|
|
4,526,110 |
|
|
|
4,500,460 |
|
|
|
4,433,953 |
|
Total liabilities and shareholders’ equity |
|
$ |
52,087,618 |
|
|
$ |
50,722,694 |
|
|
$ |
49,353,426 |
|
|
$ |
49,501,844 |
|
|
$ |
49,118,777 |
|
|
|
|
|
|
|
|
|
|
|
|
Net free funds/contribution(6) |
|
$ |
16,352,300 |
|
|
$ |
16,728,407 |
|
|
$ |
16,530,209 |
|
|
$ |
16,337,974 |
|
|
$ |
16,125,637 |
|
(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 Table 17:
Supplemental Non-GAAP Financial Measures/Ratios for additional
information on this performance measure/ratio.
(4) Other earning assets include
brokerage customer receivables and trading account
securities.
(5) Loans, net of unearned income,
include non-accrual loans.
(6) Net free funds are the difference
between total average earning assets and total average
interest-bearing liabilities. The estimated contribution to net
interest margin from net free funds is calculated using the rate
paid for total interest-bearing liabilities.
TABLE 5:
QUARTERLY NET INTEREST INCOME
|
|
Net Interest Income for three months ended, |
|
|
Dec 31, |
|
Sep 30, |
|
Jun 30, |
|
Mar 31, |
|
Dec 31, |
(In thousands) |
|
|
2022 |
|
|
|
2022 |
|
|
|
2022 |
|
|
|
2022 |
|
|
|
2021 |
|
Interest income: |
|
|
|
|
|
|
|
|
|
|
Interest-bearing deposits with banks, securities purchased under
resale agreements and cash equivalents |
|
$ |
21,612 |
|
|
$ |
17,466 |
|
|
$ |
7,154 |
|
|
$ |
2,118 |
|
|
$ |
2,427 |
|
Investment securities |
|
|
53,630 |
|
|
|
39,071 |
|
|
|
37,013 |
|
|
|
32,863 |
|
|
|
27,696 |
|
FHLB and FRB stock |
|
|
2,918 |
|
|
|
2,109 |
|
|
|
1,823 |
|
|
|
1,772 |
|
|
|
1,776 |
|
Liquidity management assets(1) |
|
|
78,160 |
|
|
|
58,646 |
|
|
|
45,990 |
|
|
|
36,753 |
|
|
|
31,899 |
|
Other earning assets(1) |
|
|
289 |
|
|
|
275 |
|
|
|
210 |
|
|
|
181 |
|
|
|
194 |
|
Mortgage loans held-for-sale |
|
|
3,997 |
|
|
|
5,371 |
|
|
|
5,740 |
|
|
|
6,087 |
|
|
|
7,234 |
|
Loans, net of unearned income(1) |
|
|
500,432 |
|
|
|
403,719 |
|
|
|
321,069 |
|
|
|
286,125 |
|
|
|
289,557 |
|
Total interest income |
|
$ |
582,878 |
|
|
$ |
468,011 |
|
|
$ |
373,009 |
|
|
$ |
329,146 |
|
|
$ |
328,884 |
|
|
|
|
|
|
|
|
|
|
|
|
Interest expense: |
|
|
|
|
|
|
|
|
|
|
NOW and interest-bearing demand deposits |
|
$ |
14,982 |
|
|
$ |
8,041 |
|
|
$ |
2,553 |
|
|
$ |
1,990 |
|
|
$ |
1,913 |
|
Wealth management deposits |
|
|
14,079 |
|
|
|
11,068 |
|
|
|
3,685 |
|
|
|
918 |
|
|
|
1,402 |
|
Money market accounts |
|
|
45,468 |
|
|
|
18,916 |
|
|
|
8,559 |
|
|
|
7,648 |
|
|
|
7,658 |
|
Savings accounts |
|
|
8,421 |
|
|
|
2,130 |
|
|
|
347 |
|
|
|
336 |
|
|
|
345 |
|
Time deposits |
|
|
12,497 |
|
|
|
5,761 |
|
|
|
3,841 |
|
|
|
3,962 |
|
|
|
5,254 |
|
Interest-bearing deposits |
|
|
95,447 |
|
|
|
45,916 |
|
|
|
18,985 |
|
|
|
14,854 |
|
|
|
16,572 |
|
Federal Home Loan Bank advances |
|
|
13,823 |
|
|
|
6,812 |
|
|
|
4,878 |
|
|
|
4,816 |
|
|
|
4,923 |
|
Other borrowings |
|
|
5,313 |
|
|
|
4,008 |
|
|
|
2,734 |
|
|
|
2,239 |
|
|
|
2,250 |
|
Subordinated notes |
|
|
5,520 |
|
|
|
5,485 |
|
|
|
5,517 |
|
|
|
5,482 |
|
|
|
5,514 |
|
Junior subordinated debentures |
|
|
3,826 |
|
|
|
2,809 |
|
|
|
2,050 |
|
|
|
1,567 |
|
|
|
2,744 |
|
Total interest expense |
|
$ |
123,929 |
|
|
$ |
65,030 |
|
|
$ |
34,164 |
|
|
$ |
28,958 |
|
|
$ |
32,003 |
|
|
|
|
|
|
|
|
|
|
|
|
Less: Fully taxable-equivalent adjustment |
|
|
(2,133 |
) |
|
|
(1,533 |
) |
|
|
(1,041 |
) |
|
|
(894 |
) |
|
|
(905 |
) |
Net interest income (GAAP)(2) |
|
|
456,816 |
|
|
|
401,448 |
|
|
|
337,804 |
|
|
|
299,294 |
|
|
|
295,976 |
|
Fully taxable-equivalent adjustment |
|
|
2,133 |
|
|
|
1,533 |
|
|
|
1,041 |
|
|
|
894 |
|
|
|
905 |
|
Net interest income, fully taxable-equivalent
(non-GAAP)(2) |
|
$ |
458,949 |
|
|
$ |
402,981 |
|
|
$ |
338,845 |
|
|
$ |
300,188 |
|
|
$ |
296,881 |
|
(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 Table 17:
Supplemental Non-GAAP Financial Measures/Ratios for additional
information on this performance measure/ratio.
TABLE 6:
QUARTERLY NET INTEREST MARGIN
|
|
Net Interest Margin for three months ended, |
|
|
Dec 31,
2022 |
|
Sep 30,
2022 |
|
Jun 30,
2022 |
|
Mar 31,
2022 |
|
Dec 31,
2021 |
Yield earned on: |
|
|
|
|
|
|
|
|
|
|
Interest-bearing deposits with banks, securities purchased under
resale agreements and cash equivalents |
|
3.50 |
% |
|
2.28 |
% |
|
0.88 |
% |
|
0.19 |
% |
|
0.16 |
% |
Investment securities |
|
2.91 |
|
|
2.33 |
|
|
2.25 |
|
|
2.09 |
|
|
2.07 |
|
FHLB and FRB stock |
|
6.25 |
|
|
5.88 |
|
|
5.34 |
|
|
5.29 |
|
|
5.20 |
|
Liquidity management assets |
|
3.12 |
|
|
2.37 |
|
|
1.85 |
|
|
1.35 |
|
|
1.09 |
|
Other earning assets |
|
6.17 |
|
|
5.01 |
|
|
3.49 |
|
|
2.91 |
|
|
2.71 |
|
Mortgage loans held-for-sale |
|
5.14 |
|
|
4.68 |
|
|
4.11 |
|
|
3.72 |
|
|
3.47 |
|
Loans, net of unearned income |
|
5.15 |
|
|
4.28 |
|
|
3.59 |
|
|
3.33 |
|
|
3.41 |
|
Total earning assets |
|
4.73 |
% |
|
3.89 |
% |
|
3.22 |
% |
|
2.86 |
% |
|
2.83 |
% |
|
|
|
|
|
|
|
|
|
|
|
Rate paid on: |
|
|
|
|
|
|
|
|
|
|
NOW and interest-bearing demand deposits |
|
1.06 |
% |
|
0.55 |
% |
|
0.20 |
% |
|
0.17 |
% |
|
0.17 |
% |
Wealth management deposits |
|
1.94 |
|
|
1.43 |
|
|
0.52 |
|
|
0.15 |
|
|
0.21 |
|
Money market accounts |
|
1.46 |
|
|
0.62 |
|
|
0.29 |
|
|
0.24 |
|
|
0.24 |
|
Savings accounts |
|
0.76 |
|
|
0.22 |
|
|
0.04 |
|
|
0.03 |
|
|
0.04 |
|
Time deposits |
|
1.23 |
|
|
0.62 |
|
|
0.42 |
|
|
0.42 |
|
|
0.51 |
|
Interest-bearing deposits |
|
1.30 |
|
|
0.64 |
|
|
0.28 |
|
|
0.22 |
|
|
0.24 |
|
Federal Home Loan Bank advances |
|
2.63 |
|
|
1.93 |
|
|
1.63 |
|
|
1.57 |
|
|
1.57 |
|
Other borrowings |
|
4.39 |
|
|
3.32 |
|
|
2.24 |
|
|
1.84 |
|
|
1.78 |
|
Subordinated notes |
|
5.05 |
|
|
5.02 |
|
|
5.05 |
|
|
5.02 |
|
|
5.05 |
|
Junior subordinated debentures |
|
5.90 |
|
|
4.33 |
|
|
3.20 |
|
|
2.47 |
|
|
4.23 |
|
Total interest-bearing liabilities |
|
1.51 |
% |
|
0.83 |
% |
|
0.46 |
% |
|
0.39 |
% |
|
0.42 |
% |
|
|
|
|
|
|
|
|
|
|
|
Interest rate spread(1)(2) |
|
3.22 |
% |
|
3.06 |
% |
|
2.76 |
% |
|
2.47 |
% |
|
2.41 |
% |
Less: Fully taxable-equivalent adjustment |
|
(0.02 |
) |
|
(0.01 |
) |
|
(0.01 |
) |
|
(0.01 |
) |
|
(0.01 |
) |
Net free funds/contribution(3) |
|
0.51 |
|
|
0.29 |
|
|
0.17 |
|
|
0.14 |
|
|
0.14 |
|
Net interest margin (GAAP)(2) |
|
3.71 |
% |
|
3.34 |
% |
|
2.92 |
% |
|
2.60 |
% |
|
2.54 |
% |
Fully taxable-equivalent adjustment |
|
0.02 |
|
|
0.01 |
|
|
0.01 |
|
|
0.01 |
|
|
0.01 |
|
Net interest margin, fully taxable-equivalent
(non-GAAP)(2) |
|
3.73 |
% |
|
3.35 |
% |
|
2.93 |
% |
|
2.61 |
% |
|
2.55 |
% |
(1) Interest rate
spread is the difference between the yield earned on earning assets
and the rate paid on interest-bearing liabilities.
(2) See Table 17:
Supplemental Non-GAAP Financial Measures/Ratios 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
fortwelve months
ended, |
Interest
fortwelve months
ended, |
Yield/Rate
fortwelve months
ended, |
(Dollars in thousands) |
Dec 31,
2022 |
|
Dec 31,
2021 |
Dec 31,
2022 |
|
Dec 31,
2021 |
Dec 31,
2022 |
|
Dec 31,
2021 |
Interest-bearing deposits with banks, securities purchased under
resale agreements and cash equivalents(1) |
$ |
3,323,196 |
|
|
$ |
4,840,048 |
|
$ |
48,350 |
|
|
$ |
6,779 |
|
1.45 |
% |
|
0.14 |
% |
Investment securities(2) |
|
6,735,732 |
|
|
|
4,779,313 |
|
|
162,577 |
|
|
|
97,258 |
|
2.41 |
|
|
2.03 |
|
FHLB and FRB stock |
|
150,223 |
|
|
|
135,873 |
|
|
8,622 |
|
|
|
7,067 |
|
5.74 |
|
|
5.20 |
|
Liquidity management assets(3)(4) |
$ |
10,209,151 |
|
|
$ |
9,755,234 |
|
$ |
219,549 |
|
|
$ |
111,104 |
|
2.15 |
% |
|
1.14 |
% |
Other earning assets(3)(4)(5) |
|
22,391 |
|
|
|
25,096 |
|
|
955 |
|
|
|
657 |
|
4.27 |
|
|
2.62 |
|
Mortgage loans held-for-sale |
|
496,088 |
|
|
|
959,457 |
|
|
21,195 |
|
|
|
32,169 |
|
4.27 |
|
|
3.35 |
|
Loans, net of unearned income(3)(4)(6) |
|
36,684,528 |
|
|
|
33,051,043 |
|
|
1,511,345 |
|
|
|
1,135,155 |
|
4.12 |
|
|
3.43 |
|
Total earning assets(4) |
$ |
47,412,158 |
|
|
$ |
43,790,830 |
|
$ |
1,753,044 |
|
|
$ |
1,279,085 |
|
3.70 |
% |
|
2.92 |
% |
Allowance for loan and investment security losses |
|
(256,690 |
) |
|
|
(284,163 |
) |
|
|
|
|
|
|
Cash and due from banks |
|
473,025 |
|
|
|
432,836 |
|
|
|
|
|
|
|
Other assets |
|
2,795,826 |
|
|
|
2,884,548 |
|
|
|
|
|
|
|
Total assets |
$ |
50,424,319 |
|
|
$ |
46,824,051 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NOW and interest-bearing demand deposits |
$ |
5,355,077 |
|
|
$ |
4,029,662 |
|
$ |
27,566 |
|
|
$ |
7,739 |
|
0.51 |
% |
|
0.19 |
% |
Wealth management deposits |
|
2,827,497 |
|
|
|
2,361,412 |
|
|
29,750 |
|
|
|
4,534 |
|
1.05 |
|
|
0.19 |
|
Money market accounts |
|
12,254,159 |
|
|
|
11,801,788 |
|
|
80,591 |
|
|
|
32,031 |
|
0.66 |
|
|
0.27 |
|
Savings accounts |
|
4,014,166 |
|
|
|
3,734,162 |
|
|
11,234 |
|
|
|
1,583 |
|
0.28 |
|
|
0.04 |
|
Time deposits |
|
3,812,148 |
|
|
|
4,447,871 |
|
|
26,061 |
|
|
|
42,232 |
|
0.68 |
|
|
0.95 |
|
Interest-bearing deposits |
$ |
28,263,047 |
|
|
$ |
26,374,895 |
|
$ |
175,202 |
|
|
$ |
88,119 |
|
0.62 |
% |
|
0.33 |
% |
Federal Home Loan Bank advances |
|
1,484,663 |
|
|
|
1,236,478 |
|
|
30,329 |
|
|
|
19,581 |
|
2.04 |
|
|
1.58 |
|
Other borrowings |
|
485,820 |
|
|
|
514,657 |
|
|
14,294 |
|
|
|
9,928 |
|
2.94 |
|
|
1.93 |
|
Subordinated notes |
|
437,139 |
|
|
|
436,697 |
|
|
22,004 |
|
|
|
21,983 |
|
5.03 |
|
|
5.03 |
|
Junior subordinated debentures |
|
253,566 |
|
|
|
253,566 |
|
|
10,252 |
|
|
|
10,916 |
|
4.10 |
|
|
4.25 |
|
Total interest-bearing liabilities |
$ |
30,924,235 |
|
|
$ |
28,816,293 |
|
$ |
252,081 |
|
|
$ |
150,527 |
|
0.81 |
% |
|
0.52 |
% |
Non-interest-bearing deposits |
|
13,667,879 |
|
|
|
12,638,518 |
|
|
|
|
|
|
|
Other liabilities |
|
1,197,981 |
|
|
|
1,068,498 |
|
|
|
|
|
|
|
Equity |
|
4,634,224 |
|
|
|
4,300,742 |
|
|
|
|
|
|
|
Total liabilities and shareholders’ equity |
$ |
50,424,319 |
|
|
$ |
46,824,051 |
|
|
|
|
|
|
|
Interest rate spread(4)(7) |
|
|
|
|
|
|
2.89 |
% |
|
2.40 |
% |
Less: Fully taxable-equivalent adjustment |
|
|
|
|
(5,601 |
) |
|
|
(3,601 |
) |
(0.02 |
) |
|
(0.01 |
) |
Net free funds/contribution(8) |
$ |
16,487,923 |
|
|
$ |
14,974,537 |
|
|
|
|
0.28 |
|
|
0.18 |
|
Net interest income/margin (GAAP)(4) |
|
|
|
$ |
1,495,362 |
|
|
$ |
1,124,957 |
|
3.15 |
% |
|
2.57 |
% |
Fully taxable-equivalent adjustment |
|
|
|
|
5,601 |
|
|
|
3,601 |
|
0.02 |
|
|
0.01 |
|
Net interest income/margin, fully taxable-equivalent
(non-GAAP)(4) |
|
|
|
$ |
1,500,963 |
|
|
$ |
1,128,558 |
|
3.17 |
% |
|
2.58 |
% |
(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 Table 17:
Supplemental Non-GAAP Financial Measures/Ratios 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 and decreases of 100 and 200 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 |
|
-200 Basis
Points |
Dec 31, 2022 |
|
7.2 |
% |
|
3.8 |
% |
|
(5.0 |
)% |
|
(12.1 |
)% |
Sep 30, 2022 |
|
12.9 |
|
|
7.1 |
|
|
(8.7 |
) |
|
(18.9 |
) |
Jun 30, 2022 |
|
17.0 |
|
|
9.0 |
|
|
(12.6 |
) |
|
(23.8 |
) |
Mar 31, 2022 |
|
21.4 |
|
|
11.0 |
|
|
(11.3 |
) |
|
(18.7 |
) |
Dec 31, 2021 |
|
25.3 |
|
|
12.4 |
|
|
(8.5 |
) |
|
(15.8 |
) |
Ramp Scenario |
+200 Basis
Points |
|
+100 Basis
Points |
|
-100 Basis
Points |
|
-200 Basis
Points |
Dec 31, 2022 |
5.6 |
% |
|
3.0 |
% |
|
(2.9 |
)% |
|
(6.8 |
)% |
Sep 30, 2022 |
6.5 |
|
|
3.6 |
|
|
(3.9 |
) |
|
(8.6 |
) |
Jun 30, 2022 |
10.2 |
|
|
5.3 |
|
|
(6.9 |
) |
|
(14.3 |
) |
Mar 31, 2022 |
11.2 |
|
|
5.8 |
|
|
(7.1 |
) |
|
(12.4 |
) |
Dec 31, 2021 |
13.9 |
|
|
6.9 |
|
|
(5.6 |
) |
|
(10.8 |
) |
As shown above, the magnitude of potential
changes in net interest income in various interest rate scenarios
has continued to diminish. Given the recent unprecedented rise in
interest rates, the Company has made a conscious effort to
reposition its exposure to changing interest rates given the
uncertainty of the future interest rate environment. To this end,
management has executed various derivative instruments including
collars and receive fixed swaps to hedge variable rate loan
exposures and originated a higher percentage of its loan
originations in longer term fixed rate loans. The Company will
continue to monitor current and projected interest rates and
expects to execute additional derivatives to mitigate potential
fluctuations in the net interest margin in future years.
TABLE 9: MATURITIES AND
SENSITIVITIES TO CHANGES IN INTEREST RATES
|
Loans repricing or maturity period |
As of December 31, 2022 |
One year or
less |
|
From one to
five years |
|
From five to
fifteen years |
|
After fifteen
years |
|
Total |
(In
thousands) |
|
|
|
|
Commercial |
|
|
|
|
|
|
|
|
|
Fixed rate |
$ |
555,594 |
|
$ |
2,534,527 |
|
$ |
1,592,024 |
|
$ |
12,925 |
|
$ |
4,695,070 |
Variable rate |
|
7,852,693 |
|
|
1,352 |
|
|
49 |
|
|
— |
|
|
7,854,094 |
Total commercial |
$ |
8,408,287 |
|
$ |
2,535,879 |
|
$ |
1,592,073 |
|
$ |
12,925 |
|
$ |
12,549,164 |
Commercial real estate |
|
|
|
|
|
|
|
|
|
Fixed rate |
|
430,152 |
|
|
2,744,033 |
|
|
607,770 |
|
|
46,352 |
|
|
3,828,307 |
Variable rate |
|
6,102,383 |
|
|
20,257 |
|
|
— |
|
|
— |
|
|
6,122,640 |
Total commercial real estate |
$ |
6,532,535 |
|
$ |
2,764,290 |
|
$ |
607,770 |
|
$ |
46,352 |
|
$ |
9,950,947 |
Home equity |
|
|
|
|
|
|
|
|
|
Fixed rate |
|
11,960 |
|
|
3,185 |
|
|
— |
|
|
144 |
|
|
15,289 |
Variable rate |
|
317,409 |
|
|
— |
|
|
— |
|
|
— |
|
|
317,409 |
Total home equity |
$ |
329,369 |
|
$ |
3,185 |
|
$ |
— |
|
$ |
144 |
|
$ |
332,698 |
Residential real estate |
|
|
|
|
|
|
|
|
|
Fixed rate |
|
20,048 |
|
|
3,960 |
|
|
30,245 |
|
|
1,032,018 |
|
|
1,086,271 |
Variable rate |
|
63,242 |
|
|
238,405 |
|
|
984,465 |
|
|
— |
|
|
1,286,112 |
Total residential real estate |
$ |
83,290 |
|
$ |
242,365 |
|
$ |
1,014,710 |
|
$ |
1,032,018 |
|
$ |
2,372,383 |
Premium finance receivables - property & casualty |
|
|
|
|
|
|
|
|
|
Fixed rate |
|
5,695,585 |
|
|
153,874 |
|
|
— |
|
|
— |
|
|
5,849,459 |
Variable rate |
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
Total premium finance receivables - property & casualty |
$ |
5,695,585 |
|
$ |
153,874 |
|
$ |
— |
|
$ |
— |
|
$ |
5,849,459 |
Premium finance receivables - life insurance |
|
|
|
|
|
|
|
|
|
Fixed rate |
|
91,363 |
|
|
470,117 |
|
|
22,185 |
|
|
— |
|
|
583,665 |
Variable rate |
|
7,507,333 |
|
|
— |
|
|
— |
|
|
— |
|
|
7,507,333 |
Total premium finance receivables - life insurance |
$ |
7,598,696 |
|
$ |
470,117 |
|
$ |
22,185 |
|
$ |
— |
|
$ |
8,090,998 |
Consumer and other |
|
|
|
|
|
|
|
|
|
Fixed rate |
|
12,335 |
|
|
5,032 |
|
|
11 |
|
|
482 |
|
|
17,860 |
Variable rate |
|
32,976 |
|
|
— |
|
|
— |
|
|
— |
|
|
32,976 |
Total consumer and other |
$ |
45,311 |
|
$ |
5,032 |
|
$ |
11 |
|
$ |
482 |
|
$ |
50,836 |
|
|
|
|
|
|
|
|
|
|
Total per category |
|
|
|
|
|
|
|
|
|
Fixed rate |
|
6,817,037 |
|
|
5,914,728 |
|
|
2,252,235 |
|
|
1,091,921 |
|
|
16,075,921 |
Variable rate |
|
21,876,036 |
|
|
260,014 |
|
|
984,514 |
|
|
— |
|
|
23,120,564 |
Total loans, net of unearned income |
$ |
28,693,073 |
|
$ |
6,174,742 |
|
$ |
3,236,749 |
|
$ |
1,091,921 |
|
$ |
39,196,485 |
|
|
|
|
|
|
|
|
|
|
Variable Rate Loan Pricing by Index: |
|
|
|
|
|
|
|
|
|
Prime |
|
|
|
|
|
|
|
|
$ |
3,850,970 |
One- month LIBOR |
|
|
|
|
|
|
|
|
|
3,349,999 |
Three- month LIBOR |
|
|
|
|
|
|
|
|
|
122,551 |
Twelve- month LIBOR |
|
|
|
|
|
|
|
|
|
3,582,952 |
One- year CMT |
|
|
|
|
|
|
|
|
|
3,812,549 |
Other U.S. Treasury tenors |
|
|
|
|
|
|
|
|
|
84,837 |
SOFR tenors |
|
|
|
|
|
|
|
|
|
7,670,959 |
Ameribor tenors |
|
|
|
|
|
|
|
|
|
336,618 |
BSBY tenors |
|
|
|
|
|
|
|
|
|
39,185 |
Other |
|
|
|
|
|
|
|
|
|
269,944 |
Total variable rate |
|
|
|
|
|
|
|
|
$ |
23,120,564 |
LIBOR - London Interbank Offered Rate.
CMT - Constant Maturity Treasury 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/af5c30bf-cfcb-48dd-a1d5-f5753b798a27
Source: Bloomberg
As noted in the table on the previous page, the
majority of the Company’s portfolio is tied to LIBOR and SOFR
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 variable rate loans of $3.3 billion tied to
one-month LIBOR, $3.6 billion tied to twelve-month LIBOR and $6.6
billion tied to one-month SOFR. The above chart shows:
|
|
Basis Point (bp) Change in |
|
|
Prime |
|
1-month
LIBOR |
|
12-month
LIBOR |
|
1-month
SOFR |
|
Fourth Quarter 2022 |
|
125 |
bps |
125 |
bps |
70 |
bps |
132 |
bps |
Third
Quarter 2022 |
|
150 |
|
135 |
|
116 |
|
135 |
|
Second
Quarter 2022 |
|
125 |
|
134 |
|
152 |
|
139 |
|
First
Quarter 2022 |
|
25 |
|
35 |
|
152 |
|
25 |
|
Fourth Quarter 2021 |
|
0 |
|
2 |
|
34 |
|
-1 |
|
TABLE 10:
ALLOWANCE FOR CREDIT LOSSES
|
|
Three Months Ended |
Years Ended |
|
|
Dec 31, |
|
Sep 30, |
|
Jun 30, |
|
Mar 31, |
|
Dec 31, |
Dec 31, |
|
Dec 31, |
(Dollars in thousands) |
|
|
2022 |
|
|
|
2022 |
|
|
|
2022 |
|
|
|
2022 |
|
|
|
2021 |
|
|
2022 |
|
|
|
2021 |
|
Allowance for credit losses at beginning of
period |
|
$ |
315,338 |
|
|
$ |
312,192 |
|
|
$ |
301,327 |
|
|
$ |
299,731 |
|
|
$ |
296,138 |
|
$ |
299,731 |
|
|
$ |
379,969 |
|
Provision for credit losses |
|
|
47,646 |
|
|
|
6,420 |
|
|
|
20,417 |
|
|
|
4,106 |
|
|
|
9,299 |
|
|
78,589 |
|
|
|
(59,263 |
) |
Initial allowance for credit losses recognized on PCD
assets acquired during the
period(1) |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
470 |
|
|
— |
|
|
|
470 |
|
Other adjustments |
|
|
31 |
|
|
|
(105 |
) |
|
|
(56 |
) |
|
|
22 |
|
|
|
5 |
|
|
(108 |
) |
|
|
5 |
|
Charge-offs: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial |
|
|
3,019 |
|
|
|
780 |
|
|
|
8,928 |
|
|
|
1,414 |
|
|
|
4,431 |
|
|
14,141 |
|
|
|
20,801 |
|
Commercial real estate |
|
|
538 |
|
|
|
24 |
|
|
|
40 |
|
|
|
777 |
|
|
|
495 |
|
|
1,379 |
|
|
|
3,293 |
|
Home equity |
|
|
— |
|
|
|
43 |
|
|
|
192 |
|
|
|
197 |
|
|
|
135 |
|
|
432 |
|
|
|
336 |
|
Residential real estate |
|
|
— |
|
|
|
5 |
|
|
|
— |
|
|
|
466 |
|
|
|
1,067 |
|
|
471 |
|
|
|
1,082 |
|
Premium finance receivables - property & casualty |
|
|
3,629 |
|
|
|
6,037 |
|
|
|
2,903 |
|
|
|
1,671 |
|
|
|
2,314 |
|
|
14,240 |
|
|
|
9,020 |
|
Premium finance receivables - life insurance |
|
|
28 |
|
|
|
— |
|
|
|
— |
|
|
|
7 |
|
|
|
— |
|
|
35 |
|
|
|
— |
|
Consumer and other |
|
|
— |
|
|
|
635 |
|
|
|
253 |
|
|
|
193 |
|
|
|
157 |
|
|
1,081 |
|
|
|
487 |
|
Total charge-offs |
|
|
7,214 |
|
|
|
7,524 |
|
|
|
12,316 |
|
|
|
4,725 |
|
|
|
8,599 |
|
|
31,779 |
|
|
|
35,019 |
|
Recoveries: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial |
|
|
691 |
|
|
|
2,523 |
|
|
|
996 |
|
|
|
538 |
|
|
|
389 |
|
|
4,748 |
|
|
|
2,559 |
|
Commercial real estate |
|
|
61 |
|
|
|
55 |
|
|
|
553 |
|
|
|
32 |
|
|
|
217 |
|
|
701 |
|
|
|
1,304 |
|
Home equity |
|
|
65 |
|
|
|
38 |
|
|
|
123 |
|
|
|
93 |
|
|
|
461 |
|
|
319 |
|
|
|
1,203 |
|
Residential real estate |
|
|
6 |
|
|
|
60 |
|
|
|
6 |
|
|
|
5 |
|
|
|
85 |
|
|
77 |
|
|
|
330 |
|
Premium finance receivables - property & casualty |
|
|
1,279 |
|
|
|
1,648 |
|
|
|
1,119 |
|
|
|
1,476 |
|
|
|
1,240 |
|
|
5,522 |
|
|
|
7,989 |
|
Premium finance receivables - life insurance |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
— |
|
|
|
— |
|
Consumer and other |
|
|
33 |
|
|
|
31 |
|
|
|
23 |
|
|
|
49 |
|
|
|
26 |
|
|
136 |
|
|
|
184 |
|
Total recoveries |
|
|
2,135 |
|
|
|
4,355 |
|
|
|
2,820 |
|
|
|
2,193 |
|
|
|
2,418 |
|
|
11,503 |
|
|
|
13,569 |
|
Net charge-offs |
|
|
(5,079 |
) |
|
|
(3,169 |
) |
|
|
(9,496 |
) |
|
|
(2,532 |
) |
|
|
(6,181 |
) |
|
(20,276 |
) |
|
|
(21,450 |
) |
Allowance for credit losses at period end |
|
$ |
357,936 |
|
|
$ |
315,338 |
|
|
$ |
312,192 |
|
|
$ |
301,327 |
|
|
$ |
299,731 |
|
$ |
357,936 |
|
|
$ |
299,731 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Annualized net charge-offs (recoveries) by category as a
percentage of its own respective
category’s average: |
|
|
|
Commercial |
|
|
0.08 |
% |
|
(0.06) % |
|
|
0.27 |
% |
|
|
0.03 |
% |
|
|
0.14 |
% |
|
0.08 |
% |
|
|
0.16 |
% |
Commercial real estate |
|
|
0.02 |
|
|
|
0.00 |
|
|
|
(0.02 |
) |
|
|
0.03 |
|
|
|
0.01 |
|
|
0.01 |
|
|
|
0.02 |
|
Home equity |
|
|
(0.08 |
) |
|
|
0.01 |
|
|
|
0.09 |
|
|
|
0.13 |
|
|
|
(0.38 |
) |
|
0.03 |
|
|
|
(0.23 |
) |
Residential real estate |
|
|
0.00 |
|
|
|
(0.01 |
) |
|
|
0.00 |
|
|
|
0.11 |
|
|
|
0.25 |
|
|
0.02 |
|
|
|
0.05 |
|
Premium finance receivables - property & casualty |
|
|
0.16 |
|
|
|
0.30 |
|
|
|
0.14 |
|
|
|
0.02 |
|
|
|
0.09 |
|
|
0.16 |
|
|
|
0.02 |
|
Premium finance receivables - life insurance |
|
|
0.00 |
|
|
|
— |
|
|
|
— |
|
|
|
0.00 |
|
|
|
— |
|
|
0.00 |
|
|
|
— |
|
Consumer and other |
|
|
(0.16 |
) |
|
|
4.02 |
|
|
|
1.31 |
|
|
|
1.19 |
|
|
|
0.95 |
|
|
1.22 |
|
|
|
0.66 |
|
Total loans, net of unearned income |
|
|
0.05 |
% |
|
|
0.03 |
% |
|
|
0.11 |
% |
|
|
0.03 |
% |
|
|
0.07 |
% |
|
0.06 |
% |
|
|
0.06 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans at period end |
|
$ |
39,196,485 |
|
|
$ |
38,167,613 |
|
|
$ |
37,053,103 |
|
|
$ |
35,280,547 |
|
|
$ |
34,789,104 |
|
|
|
|
Allowance for loan losses as a percentage of loans at
period end |
|
|
0.69 |
% |
|
|
0.64 |
% |
|
|
0.68 |
% |
|
|
0.71 |
% |
|
|
0.71 |
% |
|
|
|
Allowance for loan and unfunded lending-related commitment
losses as a percentage of loans at period end |
|
|
0.91 |
|
|
|
0.83 |
|
|
|
0.84 |
|
|
|
0.85 |
|
|
|
0.86 |
|
|
|
|
(1) The initial
allowance for credit losses on purchased credit deteriorated
(“PCD”) loans acquired during the period measured approximately
$2.8 million, of which approximately $2.3 million was charged-off
related to PCD loans that met the Company’s charge-off policy at
the time of acquisition. After considering these loans that were
immediately charged-off, the net impact of PCD allowance for credit
losses at the acquisition date was approximately $470,000.
TABLE 11:
ALLOWANCE AND PROVISION FOR CREDIT LOSSES BY
COMPONENT
|
|
Three Months Ended |
Years Ended |
|
|
Dec 31, |
|
Sep 30, |
|
Jun 30, |
|
Mar 31, |
|
Dec 31, |
Dec 31, |
|
Dec 31, |
(In thousands) |
|
2022 |
|
|
2022 |
|
|
|
2022 |
|
|
|
2022 |
|
|
|
2021 |
|
|
2022 |
|
|
2021 |
|
Provision for loan losses |
|
$ |
29,110 |
|
$ |
(2,385 |
) |
|
$ |
10,782 |
|
|
$ |
5,214 |
|
|
$ |
4,929 |
|
$ |
42,721 |
|
$ |
(50,563 |
) |
Provision for unfunded lending-related commitments losses |
|
|
18,358 |
|
|
8,578 |
|
|
|
9,711 |
|
|
|
(1,189 |
) |
|
|
4,375 |
|
|
35,458 |
|
|
(8,717 |
) |
Provision for held-to-maturity securities losses |
|
|
178 |
|
|
227 |
|
|
|
(76 |
) |
|
|
81 |
|
|
|
(5 |
) |
|
410 |
|
|
17 |
|
Provision for credit losses |
|
$ |
47,646 |
|
$ |
6,420 |
|
|
$ |
20,417 |
|
|
$ |
4,106 |
|
|
$ |
9,299 |
|
$ |
78,589 |
|
$ |
(59,263 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Allowance for loan losses |
|
$ |
270,173 |
|
$ |
246,110 |
|
|
$ |
251,769 |
|
|
$ |
250,539 |
|
|
$ |
247,835 |
|
|
|
|
Allowance for unfunded lending-related commitments losses |
|
|
87,275 |
|
|
68,918 |
|
|
|
60,340 |
|
|
|
50,629 |
|
|
|
51,818 |
|
|
|
|
Allowance for loan losses and unfunded lending-related commitments
losses |
|
|
357,448 |
|
|
315,028 |
|
|
|
312,109 |
|
|
|
301,168 |
|
|
|
299,653 |
|
|
|
|
Allowance for held-to-maturity securities losses |
|
|
488 |
|
|
310 |
|
|
|
83 |
|
|
|
159 |
|
|
|
78 |
|
|
|
|
Allowance for credit losses |
|
$ |
357,936 |
|
$ |
315,338 |
|
|
$ |
312,192 |
|
|
$ |
301,327 |
|
|
$ |
299,731 |
|
|
|
|
TABLE 12:
ALLOWANCE BY LOAN PORTFOLIO
The table below summarizes the calculation of
allowance for loan losses and allowance for unfunded
lending-related commitments losses for the Company’s loan
portfolios as well as core and niche portfolios, as of
December 31, 2022, September 30, 2022 and June 30,
2022.
|
As of Dec 31, 2022 |
As of Sep 30, 2022 |
As of Jun 30, 2022 |
(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 |
$ |
12,520,241 |
|
$ |
142,769 |
|
1.14 |
% |
$ |
12,215,592 |
|
$ |
135,315 |
|
1.11 |
% |
$ |
11,965,016 |
|
$ |
142,916 |
|
1.19 |
% |
Commercial PPP loans |
|
28,923 |
|
|
0 |
|
0.00 |
|
|
43,658 |
|
|
1 |
|
0.00 |
|
|
82,089 |
|
|
3 |
|
0.00 |
|
Commercial real estate: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Construction and development |
|
1,486,930 |
|
|
75,907 |
|
5.10 |
|
|
1,525,511 |
|
|
51,389 |
|
3.37 |
|
|
1,506,318 |
|
|
45,522 |
|
3.02 |
|
Non-construction |
|
8,464,017 |
|
|
108,445 |
|
1.28 |
|
|
8,052,673 |
|
|
99,329 |
|
1.23 |
|
|
7,900,887 |
|
|
98,210 |
|
1.24 |
|
Home
equity |
|
332,698 |
|
|
7,573 |
|
2.28 |
|
|
328,822 |
|
|
7,055 |
|
2.15 |
|
|
325,826 |
|
|
6,990 |
|
2.15 |
|
Residential real estate |
|
2,372,383 |
|
|
11,585 |
|
0.49 |
|
|
2,235,459 |
|
|
11,023 |
|
0.49 |
|
|
2,078,907 |
|
|
10,479 |
|
0.50 |
|
Premium finance receivables |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial insurance loans |
|
5,849,459 |
|
|
9,967 |
|
0.17 |
|
|
5,713,340 |
|
|
9,736 |
|
0.17 |
|
|
5,541,447 |
|
|
6,840 |
|
0.12 |
|
Life insurance loans |
|
8,090,998 |
|
|
704 |
|
0.01 |
|
|
8,004,856 |
|
|
696 |
|
0.01 |
|
|
7,608,433 |
|
|
662 |
|
0.01 |
|
Consumer
and other |
|
50,836 |
|
|
498 |
|
0.98 |
|
|
47,702 |
|
|
484 |
|
1.01 |
|
|
44,180 |
|
|
487 |
|
1.10 |
|
Total loans, net of unearned income |
$ |
39,196,485 |
|
$ |
357,448 |
|
0.91 |
% |
$ |
38,167,613 |
|
$ |
315,028 |
|
0.83 |
% |
$ |
37,053,103 |
|
$ |
312,109 |
|
0.84 |
% |
Total loans, net of unearned income, excluding PPP
loans |
$ |
39,167,562 |
|
$ |
357,448 |
|
0.91 |
% |
$ |
38,123,955 |
|
$ |
315,027 |
|
0.83 |
% |
$ |
36,971,014 |
|
$ |
312,106 |
|
0.84 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total core loans(1) |
$ |
22,490,701 |
|
$ |
320,403 |
|
1.42 |
% |
$ |
21,697,055 |
|
$ |
273,947 |
|
1.26 |
% |
$ |
20,994,470 |
|
$ |
275,188 |
|
1.31 |
% |
Total niche loans(1) |
|
16,676,861 |
|
|
37,045 |
|
0.22 |
|
|
16,426,900 |
|
|
41,080 |
|
0.25 |
|
|
15,976,544 |
|
|
36,918 |
|
0.23 |
|
Total PPP loans |
|
28,923 |
|
|
0 |
|
0.00 |
|
|
43,658 |
|
|
1 |
|
0.00 |
|
|
82,089 |
|
|
3 |
|
0.00 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) See Table 1
for additional detail on core and niche
loans.
TABLE 13:
LOAN PORTFOLIO AGING
(In thousands) |
|
Dec 31, 2022 |
|
Sep 30, 2022 |
|
Jun 30, 2022 |
|
Mar 31, 2022 |
|
Dec 31, 2021 |
Loan Balances: |
|
|
|
|
|
|
|
|
|
|
Commercial |
|
|
|
|
|
|
|
|
|
|
Nonaccrual |
|
$ |
35,579 |
|
$ |
44,293 |
|
$ |
32,436 |
|
$ |
16,878 |
|
$ |
20,399 |
90+ days and still accruing |
|
|
462 |
|
|
237 |
|
|
— |
|
|
— |
|
|
15 |
60-89 days past due |
|
|
21,128 |
|
|
24,641 |
|
|
16,789 |
|
|
1,294 |
|
|
24,262 |
30-59 days past due |
|
|
56,696 |
|
|
34,917 |
|
|
14,120 |
|
|
31,889 |
|
|
43,861 |
Current |
|
|
12,435,299 |
|
|
12,155,162 |
|
|
11,983,760 |
|
|
11,533,902 |
|
|
11,815,531 |
Total commercial |
|
$ |
12,549,164 |
|
$ |
12,259,250 |
|
$ |
12,047,105 |
|
$ |
11,583,963 |
|
$ |
11,904,068 |
Commercial real estate |
|
|
|
|
|
|
|
|
|
|
Nonaccrual |
|
$ |
6,387 |
|
$ |
10,477 |
|
$ |
10,718 |
|
$ |
12,301 |
|
$ |
21,746 |
90+ days and still accruing |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
60-89 days past due |
|
|
2,244 |
|
|
6,041 |
|
|
6,771 |
|
|
2,648 |
|
|
284 |
30-59 days past due |
|
|
30,675 |
|
|
29,971 |
|
|
34,220 |
|
|
30,141 |
|
|
40,443 |
Current |
|
|
9,911,641 |
|
|
9,531,695 |
|
|
9,355,496 |
|
|
9,189,984 |
|
|
8,927,813 |
Total commercial real estate |
|
$ |
9,950,947 |
|
$ |
9,578,184 |
|
$ |
9,407,205 |
|
$ |
9,235,074 |
|
$ |
8,990,286 |
Home equity |
|
|
|
|
|
|
|
|
|
|
Nonaccrual |
|
$ |
1,487 |
|
$ |
1,320 |
|
$ |
1,084 |
|
$ |
1,747 |
|
$ |
2,574 |
90+ days and still accruing |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
60-89 days past due |
|
|
— |
|
|
125 |
|
|
154 |
|
|
199 |
|
|
— |
30-59 days past due |
|
|
2,152 |
|
|
848 |
|
|
930 |
|
|
545 |
|
|
1,120 |
Current |
|
|
329,059 |
|
|
326,529 |
|
|
323,658 |
|
|
318,944 |
|
|
331,461 |
Total home equity |
|
$ |
332,698 |
|
$ |
328,822 |
|
$ |
325,826 |
|
$ |
321,435 |
|
$ |
335,155 |
Residential real estate |
|
|
|
|
|
|
|
|
|
|
Early buy-out loans guaranteed by U.S. government
agencies(1) |
|
$ |
164,788 |
|
$ |
148,664 |
|
|
113,856 |
|
$ |
50,096 |
|
$ |
30,828 |
Nonaccrual |
|
|
10,171 |
|
|
9,787 |
|
|
8,330 |
|
|
7,262 |
|
|
16,440 |
90+ days and still accruing |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
60-89 days past due |
|
|
4,364 |
|
|
2,149 |
|
|
534 |
|
|
293 |
|
|
982 |
30-59 days past due |
|
|
9,982 |
|
|
15 |
|
|
147 |
|
|
18,808 |
|
|
12,145 |
Current |
|
|
2,183,078 |
|
|
2,074,844 |
|
|
1,956,040 |
|
|
1,723,526 |
|
|
1,576,704 |
Total residential real estate |
|
$ |
2,372,383 |
|
$ |
2,235,459 |
|
$ |
2,078,907 |
|
$ |
1,799,985 |
|
$ |
1,637,099 |
Premium finance receivables - property & casualty |
|
|
|
|
|
|
|
|
|
|
Nonaccrual |
|
$ |
13,470 |
|
$ |
13,026 |
|
$ |
13,303 |
|
$ |
6,707 |
|
$ |
5,433 |
90+ days and still accruing |
|
|
15,841 |
|
|
16,624 |
|
|
6,447 |
|
|
12,363 |
|
|
7,210 |
60-89 days past due |
|
|
14,926 |
|
|
15,301 |
|
|
15,299 |
|
|
8,890 |
|
|
15,490 |
30-59 days past due |
|
|
40,557 |
|
|
21,128 |
|
|
23,313 |
|
|
21,278 |
|
|
22,419 |
Current |
|
|
5,764,665 |
|
|
5,647,261 |
|
|
5,483,085 |
|
|
4,888,170 |
|
|
4,804,935 |
Total Premium finance receivables - property & casualty |
|
$ |
5,849,459 |
|
$ |
5,713,340 |
|
$ |
5,541,447 |
|
$ |
4,937,408 |
|
$ |
4,855,487 |
Premium finance receivables - life insurance |
|
|
|
|
|
|
|
|
|
|
Nonaccrual |
|
$ |
— |
|
$ |
— |
|
$ |
— |
|
$ |
— |
|
$ |
— |
90+ days and still accruing |
|
|
17,245 |
|
|
1,831 |
|
|
— |
|
|
— |
|
|
7 |
60-89 days past due |
|
|
5,260 |
|
|
13,628 |
|
|
1,796 |
|
|
22,401 |
|
|
12,614 |
30-59 days past due |
|
|
68,725 |
|
|
44,954 |
|
|
65,155 |
|
|
15,522 |
|
|
66,651 |
Current |
|
|
7,999,768 |
|
|
7,944,443 |
|
|
7,541,482 |
|
|
7,316,240 |
|
|
6,963,538 |
Total Premium finance receivables - life insurance |
|
$ |
8,090,998 |
|
$ |
8,004,856 |
|
$ |
7,608,433 |
|
$ |
7,354,163 |
|
$ |
7,042,810 |
Consumer and other |
|
|
|
|
|
|
|
|
|
|
Nonaccrual |
|
$ |
6 |
|
$ |
7 |
|
$ |
8 |
|
$ |
4 |
|
$ |
477 |
90+ days and still accruing |
|
|
49 |
|
|
31 |
|
|
25 |
|
|
43 |
|
|
137 |
60-89 days past due |
|
|
18 |
|
|
26 |
|
|
8 |
|
|
5 |
|
|
34 |
30-59 days past due |
|
|
224 |
|
|
343 |
|
|
119 |
|
|
221 |
|
|
509 |
Current |
|
|
50,539 |
|
|
47,295 |
|
|
44,020 |
|
|
48,246 |
|
|
23,042 |
Total consumer and other |
|
$ |
50,836 |
|
$ |
47,702 |
|
$ |
44,180 |
|
$ |
48,519 |
|
$ |
24,199 |
Total loans, net of unearned income |
|
|
|
|
|
|
|
|
|
|
Early buy-out loans guaranteed by U.S. government
agencies(1) |
|
$ |
164,788 |
|
$ |
148,664 |
|
$ |
113,856 |
|
$ |
50,096 |
|
$ |
30,828 |
Nonaccrual |
|
|
67,100 |
|
|
78,910 |
|
|
65,879 |
|
|
44,899 |
|
|
67,069 |
90+ days and still accruing |
|
|
33,597 |
|
|
18,723 |
|
|
6,472 |
|
|
12,406 |
|
|
7,369 |
60-89 days past due |
|
|
47,940 |
|
|
61,911 |
|
|
41,351 |
|
|
35,730 |
|
|
53,666 |
30-59 days past due |
|
|
209,011 |
|
|
132,176 |
|
|
138,004 |
|
|
118,404 |
|
|
187,148 |
Current |
|
|
38,674,049 |
|
|
37,727,229 |
|
|
36,687,541 |
|
|
35,019,012 |
|
|
34,443,024 |
Total loans, net of unearned income |
|
$ |
39,196,485 |
|
$ |
38,167,613 |
|
$ |
37,053,103 |
|
$ |
35,280,547 |
|
$ |
34,789,104 |
(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”)
|
Dec 31, |
|
Sep 30, |
|
Jun 30, |
|
Mar 31, |
|
Dec 31, |
(Dollars in thousands) |
|
2022 |
|
|
|
2022 |
|
|
|
2022 |
|
|
|
2022 |
|
|
|
2021 |
|
Loans past due greater than 90 days and still
accruing(2): |
|
|
|
|
|
|
|
|
|
Commercial |
$ |
462 |
|
|
$ |
237 |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
15 |
|
Commercial real estate |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Home
equity |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Residential real estate |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Premium
finance receivables - property & casualty |
|
15,841 |
|
|
|
16,624 |
|
|
|
6,447 |
|
|
|
12,363 |
|
|
|
7,210 |
|
Premium
finance receivables - life insurance |
|
17,245 |
|
|
|
1,831 |
|
|
|
— |
|
|
|
— |
|
|
|
7 |
|
Consumer
and other |
|
49 |
|
|
|
31 |
|
|
|
25 |
|
|
|
43 |
|
|
|
137 |
|
Total loans past due greater than 90 days and still accruing |
|
33,597 |
|
|
|
18,723 |
|
|
|
6,472 |
|
|
|
12,406 |
|
|
|
7,369 |
|
Non-accrual loans: |
|
|
|
|
|
|
|
|
|
Commercial |
|
35,579 |
|
|
|
44,293 |
|
|
|
32,436 |
|
|
|
16,878 |
|
|
|
20,399 |
|
Commercial real estate |
|
6,387 |
|
|
|
10,477 |
|
|
|
10,718 |
|
|
|
12,301 |
|
|
|
21,746 |
|
Home
equity |
|
1,487 |
|
|
|
1,320 |
|
|
|
1,084 |
|
|
|
1,747 |
|
|
|
2,574 |
|
Residential real estate |
|
10,171 |
|
|
|
9,787 |
|
|
|
8,330 |
|
|
|
7,262 |
|
|
|
16,440 |
|
Premium
finance receivables - property & casualty |
|
13,470 |
|
|
|
13,026 |
|
|
|
13,303 |
|
|
|
6,707 |
|
|
|
5,433 |
|
Premium
finance receivables - life insurance |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Consumer
and other |
|
6 |
|
|
|
7 |
|
|
|
8 |
|
|
|
4 |
|
|
|
477 |
|
Total non-accrual loans |
|
67,100 |
|
|
|
78,910 |
|
|
|
65,879 |
|
|
|
44,899 |
|
|
|
67,069 |
|
Total non-performing loans: |
|
|
|
|
|
|
|
|
|
Commercial |
|
36,041 |
|
|
|
44,530 |
|
|
|
32,436 |
|
|
|
16,878 |
|
|
|
20,414 |
|
Commercial real estate |
|
6,387 |
|
|
|
10,477 |
|
|
|
10,718 |
|
|
|
12,301 |
|
|
|
21,746 |
|
Home
equity |
|
1,487 |
|
|
|
1,320 |
|
|
|
1,084 |
|
|
|
1,747 |
|
|
|
2,574 |
|
Residential real estate |
|
10,171 |
|
|
|
9,787 |
|
|
|
8,330 |
|
|
|
7,262 |
|
|
|
16,440 |
|
Premium
finance receivables - property & casualty |
|
29,311 |
|
|
|
29,650 |
|
|
|
19,750 |
|
|
|
19,070 |
|
|
|
12,643 |
|
Premium
finance receivables - life insurance |
|
17,245 |
|
|
|
1,831 |
|
|
|
— |
|
|
|
— |
|
|
|
7 |
|
Consumer
and other |
|
55 |
|
|
|
38 |
|
|
|
33 |
|
|
|
47 |
|
|
|
614 |
|
Total non-performing loans |
$ |
100,697 |
|
|
$ |
97,633 |
|
|
$ |
72,351 |
|
|
$ |
57,305 |
|
|
$ |
74,438 |
|
Other
real estate owned |
|
8,589 |
|
|
|
5,376 |
|
|
|
5,574 |
|
|
|
4,978 |
|
|
|
1,959 |
|
Other
real estate owned - from acquisitions |
|
1,311 |
|
|
|
1,311 |
|
|
|
1,265 |
|
|
|
1,225 |
|
|
|
2,312 |
|
Other
repossessed assets |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Total non-performing assets |
$ |
110,597 |
|
|
$ |
104,320 |
|
|
$ |
79,190 |
|
|
$ |
63,508 |
|
|
$ |
78,709 |
|
Accruing
TDRs not included within non-performing assets |
$ |
36,620 |
|
|
$ |
34,238 |
|
|
$ |
36,184 |
|
|
$ |
35,922 |
|
|
$ |
37,486 |
|
Total non-performing loans by category as a percent of its
own respective category’s period-end balance: |
|
|
|
|
|
|
|
|
|
Commercial |
|
0.29 |
% |
|
|
0.36 |
% |
|
|
0.27 |
% |
|
|
0.15 |
% |
|
|
0.17 |
% |
Commercial real estate |
|
0.06 |
|
|
|
0.11 |
|
|
|
0.11 |
|
|
|
0.13 |
|
|
|
0.24 |
|
Home
equity |
|
0.45 |
|
|
|
0.40 |
|
|
|
0.33 |
|
|
|
0.54 |
|
|
|
0.77 |
|
Residential real estate |
|
0.43 |
|
|
|
0.44 |
|
|
|
0.40 |
|
|
|
0.40 |
|
|
|
1.00 |
|
Premium
finance receivables - property & casualty |
|
0.50 |
|
|
|
0.52 |
|
|
|
0.36 |
|
|
|
0.39 |
|
|
|
0.26 |
|
Premium
finance receivables - life insurance |
|
0.21 |
|
|
|
0.02 |
|
|
|
— |
|
|
|
— |
|
|
|
0.00 |
|
Consumer
and other |
|
0.11 |
|
|
|
0.08 |
|
|
|
0.07 |
|
|
|
0.10 |
|
|
|
2.54 |
|
Total loans, net of unearned income |
|
0.26 |
% |
|
|
0.26 |
% |
|
|
0.20 |
% |
|
|
0.16 |
% |
|
|
0.21 |
% |
Total non-performing assets as a percentage of total
assets |
|
0.21 |
% |
|
|
0.20 |
% |
|
|
0.16 |
% |
|
|
0.13 |
% |
|
|
0.16 |
% |
Allowance for loan losses and unfunded lending-related
commitments losses as a percentage of non-accrual
loans |
|
532.71 |
% |
|
|
399.22 |
% |
|
|
473.76 |
% |
|
|
670.77 |
% |
|
|
446.78 |
% |
|
|
|
|
|
|
|
|
|
|
(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 December 31,
2022, no TDRs were past due greater than 90 days and still
accruing. As of September 30, 2022,
June 30, 2022, March 31,
2022, and December 31, 2021,
approximately $1.1 million,$541,000, $320,000 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 |
Years Ended |
|
Dec 31, |
|
Sep 30, |
|
Jun 30, |
|
Mar 31, |
|
Dec 31, |
Dec 31, |
|
Dec 31, |
(In thousands) |
|
2022 |
|
|
|
2022 |
|
|
|
2022 |
|
|
|
2022 |
|
|
|
2021 |
|
|
2022 |
|
|
|
2021 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance at beginning of period |
$ |
97,633 |
|
|
$ |
72,351 |
|
|
$ |
57,305 |
|
|
$ |
74,438 |
|
|
$ |
90,041 |
|
$ |
74,438 |
|
|
$ |
127,513 |
|
Additions from becoming non-performing in the respective
period |
|
10,027 |
|
|
|
35,234 |
|
|
|
22,841 |
|
|
|
4,141 |
|
|
|
6,851 |
|
|
72,243 |
|
|
|
38,848 |
|
Return to performing status |
|
(1,167 |
) |
|
|
(154 |
) |
|
|
(1,000 |
) |
|
|
(729 |
) |
|
|
(6,616 |
) |
|
(3,050 |
) |
|
|
(10,592 |
) |
Payments received |
|
(16,351 |
) |
|
|
(20,417 |
) |
|
|
(4,029 |
) |
|
|
(20,139 |
) |
|
|
(13,212 |
) |
|
(60,936 |
) |
|
|
(53,823 |
) |
Transfer to OREO and other repossessed assets |
|
(3,365 |
) |
|
|
(185 |
) |
|
|
(1,611 |
) |
|
|
(4,377 |
) |
|
|
(275 |
) |
|
(9,538 |
) |
|
|
(6,027 |
) |
Charge-offs, net |
|
(1,363 |
) |
|
|
(341 |
) |
|
|
(1,969 |
) |
|
|
(2,354 |
) |
|
|
(5,167 |
) |
|
(6,027 |
) |
|
|
(13,351 |
) |
Net change for niche loans(1) |
|
15,283 |
|
|
|
11,145 |
|
|
|
814 |
|
|
|
6,325 |
|
|
|
2,816 |
|
|
33,567 |
|
|
|
(8,130 |
) |
Balance at end of period |
$ |
100,697 |
|
|
$ |
97,633 |
|
|
$ |
72,351 |
|
|
$ |
57,305 |
|
|
$ |
74,438 |
|
$ |
100,697 |
|
|
$ |
74,438 |
|
(1) Includes activity for premium
finance receivables and indirect consumer loans.
TDRs
|
Dec 31, |
|
Sep 30, |
|
Jun 30, |
|
Mar 31, |
|
Dec 31, |
(In thousands) |
|
2022 |
|
|
2022 |
|
|
2022 |
|
|
2022 |
|
|
2021 |
Accruing TDRs: |
|
|
|
|
|
|
|
|
|
Commercial |
$ |
2,462 |
|
$ |
2,254 |
|
$ |
2,456 |
|
$ |
2,773 |
|
$ |
4,131 |
Commercial real estate |
|
15,048 |
|
|
8,967 |
|
|
9,659 |
|
|
10,068 |
|
|
8,421 |
Residential real estate and other |
|
19,110 |
|
|
23,017 |
|
|
24,069 |
|
|
23,081 |
|
|
24,934 |
Total accrual |
$ |
36,620 |
|
$ |
34,238 |
|
$ |
36,184 |
|
$ |
35,922 |
|
$ |
37,486 |
Non-accrual
TDRs:(1) |
|
|
|
|
|
|
|
|
|
Commercial |
$ |
345 |
|
$ |
4,599 |
|
$ |
4,786 |
|
$ |
4,935 |
|
$ |
6,746 |
Commercial real estate |
|
1,823 |
|
|
1,880 |
|
|
1,955 |
|
|
2,050 |
|
|
2,050 |
Residential real estate and other |
|
2,311 |
|
|
2,516 |
|
|
2,453 |
|
|
1,964 |
|
|
3,027 |
Total non-accrual |
$ |
4,479 |
|
$ |
8,995 |
|
$ |
9,194 |
|
$ |
8,949 |
|
$ |
11,823 |
Total TDRs: |
|
|
|
|
|
|
|
|
|
Commercial |
$ |
2,807 |
|
$ |
6,853 |
|
$ |
7,242 |
|
$ |
7,708 |
|
$ |
10,877 |
Commercial real estate |
|
16,871 |
|
|
10,847 |
|
|
11,614 |
|
|
12,118 |
|
|
10,471 |
Residential real estate and other |
|
21,421 |
|
|
25,533 |
|
|
26,522 |
|
|
25,045 |
|
|
27,961 |
Total TDRs |
$ |
41,099 |
|
$ |
43,233 |
|
$ |
45,378 |
|
$ |
44,871 |
|
$ |
49,309 |
(1) Included in total
non-performing loans.
Other Real Estate Owned
|
Three Months Ended |
|
Dec 31, |
|
Sep 30, |
|
Jun 30, |
|
Mar 31, |
|
Dec 31, |
(In thousands) |
|
2022 |
|
|
|
2022 |
|
|
|
2022 |
|
|
|
2022 |
|
|
|
2021 |
|
Balance at beginning of period |
$ |
6,687 |
|
|
$ |
6,839 |
|
|
$ |
6,203 |
|
|
$ |
4,271 |
|
|
$ |
13,845 |
|
Disposals/resolved |
|
(152 |
) |
|
|
(133 |
) |
|
|
(1,172 |
) |
|
|
(2,497 |
) |
|
|
(9,664 |
) |
Transfers in at fair value, less costs to sell |
|
3,365 |
|
|
|
134 |
|
|
|
2,090 |
|
|
|
4,429 |
|
|
|
275 |
|
Fair value adjustments |
|
— |
|
|
|
(153 |
) |
|
|
(282 |
) |
|
|
— |
|
|
|
(185 |
) |
Balance at end of period |
$ |
9,900 |
|
|
$ |
6,687 |
|
|
$ |
6,839 |
|
|
$ |
6,203 |
|
|
$ |
4,271 |
|
|
|
|
|
|
|
|
|
|
|
|
Period End |
|
Dec 31, |
|
Sep 30, |
|
Jun 30, |
|
Mar 31, |
|
Dec 31, |
Balance by Property Type: |
|
2022 |
|
|
|
2022 |
|
|
|
2022 |
|
|
|
2022 |
|
|
|
2021 |
|
Residential real estate |
$ |
1,585 |
|
|
$ |
1,585 |
|
|
$ |
1,630 |
|
|
$ |
1,127 |
|
|
$ |
1,310 |
|
Residential real estate development |
|
— |
|
|
|
— |
|
|
|
133 |
|
|
|
— |
|
|
|
— |
|
Commercial real estate |
|
8,315 |
|
|
|
5,102 |
|
|
|
5,076 |
|
|
|
5,076 |
|
|
|
2,961 |
|
Total |
$ |
9,900 |
|
|
$ |
6,687 |
|
|
$ |
6,839 |
|
|
$ |
6,203 |
|
|
$ |
4,271 |
|
TABLE 15:
NON-INTEREST INCOME
|
Three Months Ended |
|
Q4 2022 compared to
Q3 2022 |
|
Q4 2022 compared to
Q4 2021 |
|
Dec 31, |
|
Sep 30, |
|
Jun 30, |
|
Mar 31, |
|
Dec 31, |
|
|
(Dollars in thousands) |
|
2022 |
|
|
|
2022 |
|
|
|
2022 |
|
|
|
2022 |
|
|
|
2021 |
|
|
$ Change |
|
% Change |
|
$ Change |
|
% Change |
Brokerage |
$ |
4,177 |
|
|
$ |
4,587 |
|
|
$ |
4,272 |
|
|
$ |
4,632 |
|
|
$ |
5,292 |
|
|
$ |
(410 |
) |
|
(9 |
)% |
|
$ |
(1,115 |
) |
|
(21 |
)% |
Trust and asset management |
|
26,550 |
|
|
|
28,537 |
|
|
|
27,097 |
|
|
|
26,762 |
|
|
|
27,197 |
|
|
|
(1,987 |
) |
|
(7 |
) |
|
|
(647 |
) |
|
(2 |
) |
Total wealth management |
|
30,727 |
|
|
|
33,124 |
|
|
|
31,369 |
|
|
|
31,394 |
|
|
|
32,489 |
|
|
|
(2,397 |
) |
|
(7 |
) |
|
|
(1,762 |
) |
|
(5 |
) |
Mortgage banking |
|
17,407 |
|
|
|
27,221 |
|
|
|
33,314 |
|
|
|
77,231 |
|
|
|
53,138 |
|
|
|
(9,814 |
) |
|
(36 |
) |
|
|
(35,731 |
) |
|
(67 |
) |
Service charges on deposit accounts |
|
13,054 |
|
|
|
14,349 |
|
|
|
15,888 |
|
|
|
15,283 |
|
|
|
14,734 |
|
|
|
(1,295 |
) |
|
(9 |
) |
|
|
(1,680 |
) |
|
(11 |
) |
Losses on investment securities, net |
|
(6,745 |
) |
|
|
(3,103 |
) |
|
|
(7,797 |
) |
|
|
(2,782 |
) |
|
|
(1,067 |
) |
|
|
(3,642 |
) |
|
NM |
|
|
|
(5,678 |
) |
|
NM |
|
Fees from covered call options |
|
7,956 |
|
|
|
1,366 |
|
|
|
1,069 |
|
|
|
3,742 |
|
|
|
1,128 |
|
|
|
6,590 |
|
|
NM |
|
|
|
6,828 |
|
|
NM |
|
Trading (losses) gains, net |
|
(306 |
) |
|
|
(7 |
) |
|
|
176 |
|
|
|
3,889 |
|
|
|
206 |
|
|
|
(299 |
) |
|
NM |
|
|
|
(512 |
) |
|
NM |
|
Operating lease income, net |
|
12,384 |
|
|
|
12,644 |
|
|
|
15,007 |
|
|
|
15,475 |
|
|
|
14,204 |
|
|
|
(260 |
) |
|
(2 |
) |
|
|
(1,820 |
) |
|
(13 |
) |
Other: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest rate swap fees |
|
2,319 |
|
|
|
1,997 |
|
|
|
3,300 |
|
|
|
4,569 |
|
|
|
3,526 |
|
|
|
322 |
|
|
16 |
|
|
|
(1,207 |
) |
|
(34 |
) |
BOLI |
|
1,394 |
|
|
|
248 |
|
|
|
(884 |
) |
|
|
48 |
|
|
|
1,192 |
|
|
|
1,146 |
|
|
NM |
|
|
|
202 |
|
|
17 |
|
Administrative services |
|
1,736 |
|
|
|
1,533 |
|
|
|
1,591 |
|
|
|
1,853 |
|
|
|
1,846 |
|
|
|
203 |
|
|
13 |
|
|
|
(110 |
) |
|
(6 |
) |
Foreign currency remeasurement gains (losses) |
|
277 |
|
|
|
(93 |
) |
|
|
97 |
|
|
|
11 |
|
|
|
111 |
|
|
|
370 |
|
|
NM |
|
|
|
166 |
|
|
NM |
|
Early pay-offs of capital leases |
|
131 |
|
|
|
138 |
|
|
|
160 |
|
|
|
265 |
|
|
|
249 |
|
|
|
(7 |
) |
|
(5 |
) |
|
|
(118 |
) |
|
(47 |
) |
Miscellaneous |
|
13,505 |
|
|
|
12,065 |
|
|
|
9,652 |
|
|
|
11,812 |
|
|
|
12,011 |
|
|
|
1,440 |
|
|
12 |
|
|
|
1,494 |
|
|
12 |
|
Total Other |
|
19,362 |
|
|
|
15,888 |
|
|
|
13,916 |
|
|
|
18,558 |
|
|
|
18,935 |
|
|
|
3,474 |
|
|
22 |
|
|
|
427 |
|
|
2 |
|
Total Non-Interest Income |
$ |
93,839 |
|
|
$ |
101,482 |
|
|
$ |
102,942 |
|
|
$ |
162,790 |
|
|
$ |
133,767 |
|
|
$ |
(7,643 |
) |
|
(8 |
)% |
|
$ |
(39,928 |
) |
|
(30 |
)% |
NM - Not meaningful.
BOLI - Bank-owned life insurance.
|
Years Ended |
|
|
|
|
|
Dec 31, |
|
Dec 31, |
|
$ |
|
% |
(Dollars in thousands) |
|
2022 |
|
|
|
2021 |
|
|
Change |
|
Change |
Brokerage |
$ |
17,668 |
|
|
$ |
20,710 |
|
|
$ |
(3,042 |
) |
|
(15 |
)% |
Trust and asset management |
|
108,946 |
|
|
|
103,309 |
|
|
|
5,637 |
|
|
5 |
|
Total wealth management |
|
126,614 |
|
|
|
124,019 |
|
|
|
2,595 |
|
|
2 |
|
Mortgage banking |
|
155,173 |
|
|
|
273,010 |
|
|
|
(117,837 |
) |
|
(43 |
) |
Service charges on deposit accounts |
|
58,574 |
|
|
|
54,168 |
|
|
|
4,406 |
|
|
8 |
|
Losses on investment securities, net |
|
(20,427 |
) |
|
|
(1,059 |
) |
|
|
(19,368 |
) |
|
NM |
|
Fees from covered call options |
|
14,133 |
|
|
|
3,673 |
|
|
|
10,460 |
|
|
NM |
|
Trading gains, net |
|
3,752 |
|
|
|
245 |
|
|
|
3,507 |
|
|
NM |
|
Operating lease income, net |
|
55,510 |
|
|
|
53,691 |
|
|
|
1,819 |
|
|
3 |
|
Other: |
|
|
|
|
|
|
|
Interest rate swap fees |
|
12,185 |
|
|
|
13,702 |
|
|
|
(1,517 |
) |
|
(11 |
) |
BOLI |
|
806 |
|
|
|
5,812 |
|
|
|
(5,006 |
) |
|
(86 |
) |
Administrative services |
|
6,713 |
|
|
|
5,689 |
|
|
|
1,024 |
|
|
18 |
|
Foreign currency remeasurement gains (losses) |
|
292 |
|
|
|
(495 |
) |
|
|
787 |
|
|
NM |
|
Early pay-offs of leases |
|
694 |
|
|
|
601 |
|
|
|
93 |
|
|
15 |
|
Miscellaneous |
|
47,034 |
|
|
|
53,064 |
|
|
|
(6,030 |
) |
|
(11 |
) |
Total Other |
|
67,724 |
|
|
|
78,373 |
|
|
|
(10,649 |
) |
|
(14 |
) |
Total Non-Interest Income |
$ |
461,053 |
|
|
$ |
586,120 |
|
|
$ |
(125,067 |
) |
|
(21 |
)% |
NM - Not meaningful.
BOLI - Bank-owned
life insurance.
TABLE 16:
NON-INTEREST EXPENSE
|
Three Months Ended |
|
Q4 2022 compared to
Q3 2022 |
|
Q4 2022 compared to
Q4 2021 |
|
Dec 31, |
|
Sep 30, |
|
Jun 30, |
|
Mar 31, |
|
Dec 31, |
|
|
(Dollars in thousands) |
2022 |
|
2022 |
|
2022 |
|
|
2022 |
|
|
|
2021 |
|
|
$ Change |
|
% Change |
|
$ Change |
|
% Change |
Salaries and employee benefits: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Salaries |
$ |
100,232 |
|
$ |
97,419 |
|
$ |
92,414 |
|
$ |
92,116 |
|
|
$ |
91,612 |
|
|
$ |
2,813 |
|
|
3 |
% |
|
$ |
8,620 |
|
|
9 |
% |
Commissions and incentive compensation |
|
49,546 |
|
|
50,403 |
|
|
46,131 |
|
|
51,793 |
|
|
|
49,923 |
|
|
|
(857 |
) |
|
(2 |
) |
|
|
(377 |
) |
|
(1 |
) |
Benefits |
|
30,553 |
|
|
28,273 |
|
|
28,781 |
|
|
28,446 |
|
|
|
25,596 |
|
|
|
2,280 |
|
|
8 |
|
|
|
4,957 |
|
|
19 |
|
Total salaries and employee benefits |
|
180,331 |
|
|
176,095 |
|
|
167,326 |
|
|
172,355 |
|
|
|
167,131 |
|
|
|
4,236 |
|
|
2 |
|
|
|
13,200 |
|
|
8 |
|
Software and equipment |
|
24,699 |
|
|
24,126 |
|
|
24,250 |
|
|
22,810 |
|
|
|
23,708 |
|
|
|
573 |
|
|
2 |
|
|
|
991 |
|
|
4 |
|
Operating lease equipment |
|
10,078 |
|
|
9,448 |
|
|
8,774 |
|
|
9,708 |
|
|
|
10,147 |
|
|
|
630 |
|
|
7 |
|
|
|
(69 |
) |
|
(1 |
) |
Occupancy, net |
|
17,763 |
|
|
17,727 |
|
|
17,651 |
|
|
17,824 |
|
|
|
18,343 |
|
|
|
36 |
|
|
0 |
|
|
|
(580 |
) |
|
(3 |
) |
Data processing |
|
7,927 |
|
|
7,767 |
|
|
8,010 |
|
|
7,505 |
|
|
|
7,207 |
|
|
|
160 |
|
|
2 |
|
|
|
720 |
|
|
10 |
|
Advertising and marketing |
|
14,279 |
|
|
16,600 |
|
|
16,615 |
|
|
11,924 |
|
|
|
13,981 |
|
|
|
(2,321 |
) |
|
(14 |
) |
|
|
298 |
|
|
2 |
|
Professional fees |
|
9,267 |
|
|
7,544 |
|
|
7,876 |
|
|
8,401 |
|
|
|
7,551 |
|
|
|
1,723 |
|
|
23 |
|
|
|
1,716 |
|
|
23 |
|
Amortization of other acquisition-related intangible assets |
|
1,436 |
|
|
1,492 |
|
|
1,579 |
|
|
1,609 |
|
|
|
1,811 |
|
|
|
(56 |
) |
|
(4 |
) |
|
|
(375 |
) |
|
(21 |
) |
FDIC insurance |
|
6,775 |
|
|
7,186 |
|
|
6,949 |
|
|
7,729 |
|
|
|
7,317 |
|
|
|
(411 |
) |
|
(6 |
) |
|
|
(542 |
) |
|
(7 |
) |
OREO expense, net |
|
369 |
|
|
229 |
|
|
294 |
|
|
(1,032 |
) |
|
|
(641 |
) |
|
|
140 |
|
|
61 |
|
|
|
1,010 |
|
|
NM |
|
Other: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Lending expenses, net of deferred origination costs |
|
4,951 |
|
|
4,533 |
|
|
4,270 |
|
|
6,821 |
|
|
|
5,525 |
|
|
|
418 |
|
|
9 |
|
|
|
(574 |
) |
|
(10 |
) |
Travel and entertainment |
|
5,681 |
|
|
4,252 |
|
|
3,897 |
|
|
2,676 |
|
|
|
3,782 |
|
|
|
1,429 |
|
|
34 |
|
|
|
1,899 |
|
|
50 |
|
Miscellaneous |
|
24,280 |
|
|
19,470 |
|
|
21,177 |
|
|
15,968 |
|
|
|
17,537 |
|
|
|
4,810 |
|
|
25 |
|
|
|
6,743 |
|
|
38 |
|
Total other |
|
34,912 |
|
|
28,255 |
|
|
29,344 |
|
|
25,465 |
|
|
|
26,844 |
|
|
|
6,657 |
|
|
24 |
|
|
|
8,068 |
|
|
30 |
|
Total Non-Interest Expense |
$ |
307,836 |
|
$ |
296,469 |
|
$ |
288,668 |
|
$ |
284,298 |
|
|
$ |
283,399 |
|
|
$ |
11,367 |
|
|
4 |
% |
|
$ |
24,437 |
|
|
9 |
% |
NM - Not meaningful.
|
|
Years Ended |
|
|
|
|
|
Dec 31, |
|
Dec 31, |
$ |
|
% |
(Dollars in thousands) |
|
|
2022 |
|
|
|
2021 |
|
Change |
|
Change |
Salaries and employee benefits: |
|
|
|
|
|
|
|
Salaries |
|
$ |
382,181 |
|
|
$ |
361,915 |
|
$ |
20,266 |
|
|
6 |
% |
Commissions and incentive compensation |
|
|
197,873 |
|
|
|
222,067 |
|
|
(24,194 |
) |
|
(11 |
) |
Benefits |
|
|
116,053 |
|
|
|
107,687 |
|
|
8,366 |
|
|
8 |
|
Total salaries and employee benefits |
|
|
696,107 |
|
|
|
691,669 |
|
|
4,438 |
|
|
1 |
|
Software and equipment |
|
|
95,885 |
|
|
|
87,515 |
|
|
8,370 |
|
|
10 |
|
Operating lease equipment |
|
|
38,008 |
|
|
|
40,880 |
|
|
(2,872 |
) |
|
(7 |
) |
Occupancy, net |
|
|
70,965 |
|
|
|
74,184 |
|
|
(3,219 |
) |
|
(4 |
) |
Data processing |
|
|
31,209 |
|
|
|
27,279 |
|
|
3,930 |
|
|
14 |
|
Advertising and marketing |
|
|
59,418 |
|
|
|
47,275 |
|
|
12,143 |
|
|
26 |
|
Professional fees |
|
|
33,088 |
|
|
|
29,494 |
|
|
3,594 |
|
|
12 |
|
Amortization of other acquisition-related intangible assets |
|
|
6,116 |
|
|
|
7,734 |
|
|
(1,618 |
) |
|
(21 |
) |
FDIC insurance |
|
|
28,639 |
|
|
|
27,030 |
|
|
1,609 |
|
|
6 |
|
OREO expense, net |
|
|
(140 |
) |
|
|
(1,654 |
) |
|
1,514 |
|
|
(92 |
) |
Other: |
|
|
|
|
|
|
|
Lending expenses, net of deferred origination costs |
|
|
20,575 |
|
|
|
22,794 |
|
|
(2,219 |
) |
|
(10 |
) |
Travel and entertainment |
|
|
16,506 |
|
|
|
10,048 |
|
|
6,458 |
|
|
64 |
|
Miscellaneous |
|
|
80,895 |
|
|
|
68,296 |
|
|
12,599 |
|
|
18 |
|
Total other |
|
|
117,976 |
|
|
|
101,138 |
|
|
16,838 |
|
|
17 |
|
Total Non-Interest Expense |
|
$ |
1,177,271 |
|
|
$ |
1,132,544 |
|
$ |
44,727 |
|
|
4 |
% |
TABLE 17: 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, net of economic hedge 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, net of economic hedge and early
buy-out loans guaranteed by U.S. government agencies, as useful
measurements of the Company’s core net income.
|
Three Months Ended |
Years Ended |
|
Dec 31, |
|
Sep 30, |
|
Jun 30, |
|
Mar 31, |
|
Dec 31, |
Dec 31, |
|
Dec 31, |
(Dollars and shares in thousands) |
|
2022 |
|
|
|
2022 |
|
|
|
2022 |
|
|
|
2022 |
|
|
|
2021 |
|
|
2022 |
|
|
|
2021 |
|
Reconciliation of Non-GAAP Net Interest Margin and
Efficiency Ratio: |
|
|
|
(A) Interest Income (GAAP) |
$ |
580,745 |
|
|
$ |
466,478 |
|
|
$ |
371,968 |
|
|
$ |
328,252 |
|
|
$ |
327,979 |
|
$ |
1,747,443 |
|
|
$ |
1,275,484 |
|
Taxable-equivalent adjustment: |
|
|
|
|
|
|
|
|
|
|
|
|
- Loans |
|
1,594 |
|
|
|
1,030 |
|
|
|
568 |
|
|
|
427 |
|
|
|
417 |
|
|
3,619 |
|
|
|
1,627 |
|
- Liquidity Management Assets |
|
538 |
|
|
|
502 |
|
|
|
472 |
|
|
|
465 |
|
|
|
486 |
|
|
1,977 |
|
|
|
1,972 |
|
- Other Earning Assets |
|
1 |
|
|
|
1 |
|
|
|
1 |
|
|
|
2 |
|
|
|
2 |
|
|
5 |
|
|
|
2 |
|
(B) Interest Income (non-GAAP) |
$ |
582,878 |
|
|
$ |
468,011 |
|
|
$ |
373,009 |
|
|
$ |
329,146 |
|
|
$ |
328,884 |
|
$ |
1,753,044 |
|
|
$ |
1,279,085 |
|
(C) Interest Expense (GAAP) |
|
123,929 |
|
|
|
65,030 |
|
|
|
34,164 |
|
|
|
28,958 |
|
|
|
32,003 |
|
|
252,081 |
|
|
|
150,527 |
|
(D) Net Interest Income (GAAP) (A minus C) |
$ |
456,816 |
|
|
$ |
401,448 |
|
|
$ |
337,804 |
|
|
$ |
299,294 |
|
|
$ |
295,976 |
|
$ |
1,495,362 |
|
|
$ |
1,124,957 |
|
(E) Net Interest Income (non-GAAP) (B minus
C) |
$ |
458,949 |
|
|
$ |
402,981 |
|
|
$ |
338,845 |
|
|
$ |
300,188 |
|
|
$ |
296,881 |
|
$ |
1,500,963 |
|
|
$ |
1,128,558 |
|
Net interest margin (GAAP) |
|
3.71 |
% |
|
|
3.34 |
% |
|
|
2.92 |
% |
|
|
2.60 |
% |
|
|
2.54 |
% |
|
3.15 |
% |
|
|
2.57 |
% |
Net interest margin, fully taxable-equivalent
(non-GAAP) |
|
3.73 |
|
|
|
3.35 |
|
|
|
2.93 |
|
|
|
2.61 |
|
|
|
2.55 |
|
|
3.17 |
|
|
|
2.58 |
|
(F) Non-interest income |
$ |
93,839 |
|
|
$ |
101,482 |
|
|
$ |
102,942 |
|
|
$ |
162,790 |
|
|
$ |
133,767 |
|
$ |
461,053 |
|
|
$ |
586,120 |
|
(G) Losses on investment securities, net |
|
(6,745 |
) |
|
|
(3,103 |
) |
|
|
(7,797 |
) |
|
|
(2,782 |
) |
|
|
(1,067 |
) |
|
(20,427 |
) |
|
|
(1,059 |
) |
(H) Non-interest expense |
|
307,836 |
|
|
|
296,469 |
|
|
|
288,668 |
|
|
|
284,298 |
|
|
|
283,399 |
|
|
1,177,271 |
|
|
|
1,132,544 |
|
Efficiency ratio (H/(D+F-G)) |
|
55.23 |
% |
|
|
58.59 |
% |
|
|
64.36 |
% |
|
|
61.16 |
% |
|
|
65.78 |
% |
|
59.55 |
% |
|
|
66.15 |
% |
Efficiency ratio (non-GAAP) (H/(E+F-G)) |
|
55.02 |
|
|
|
58.41 |
|
|
|
64.21 |
|
|
|
61.04 |
|
|
|
65.64 |
|
|
59.38 |
|
|
|
66.01 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of Non-GAAP Tangible Common Equity
Ratio: |
|
|
|
Total shareholders’ equity (GAAP) |
$ |
4,796,838 |
|
|
$ |
4,637,980 |
|
|
$ |
4,727,623 |
|
|
$ |
4,492,256 |
|
|
$ |
4,498,688 |
|
|
|
|
Less: Non-convertible preferred stock (GAAP) |
|
(412,500 |
) |
|
|
(412,500 |
) |
|
|
(412,500 |
) |
|
|
(412,500 |
) |
|
|
(412,500 |
) |
|
|
|
Less: Intangible assets (GAAP) |
|
(675,710 |
) |
|
|
(676,699 |
) |
|
|
(679,827 |
) |
|
|
(682,101 |
) |
|
|
(683,456 |
) |
|
|
|
(I) Total tangible common shareholders’ equity (non-GAAP) |
$ |
3,708,628 |
|
|
$ |
3,548,781 |
|
|
$ |
3,635,296 |
|
|
$ |
3,397,655 |
|
|
$ |
3,402,732 |
|
|
|
|
(J) Total assets (GAAP) |
$ |
52,949,649 |
|
|
$ |
52,382,939 |
|
|
$ |
50,969,332 |
|
|
$ |
50,250,661 |
|
|
$ |
50,142,143 |
|
|
|
|
Less: Intangible assets (GAAP) |
|
(675,710 |
) |
|
|
(676,699 |
) |
|
|
(679,827 |
) |
|
|
(682,101 |
) |
|
|
(683,456 |
) |
|
|
|
(K) Total tangible assets (non-GAAP) |
$ |
52,273,939 |
|
|
$ |
51,706,240 |
|
|
$ |
50,289,505 |
|
|
$ |
49,568,560 |
|
|
$ |
49,458,687 |
|
|
|
|
Common equity to assets ratio (GAAP) (L/J) |
|
8.3 |
% |
|
|
8.1 |
% |
|
|
8.5 |
% |
|
|
8.1 |
% |
|
|
8.1 |
% |
|
|
|
Tangible common equity ratio (non-GAAP) (I/K) |
|
7.1 |
|
|
|
6.9 |
|
|
|
7.2 |
|
|
|
6.9 |
|
|
|
6.9 |
|
|
|
|
|
Three Months Ended |
Years Ended |
|
Dec 31, |
|
Sep 30, |
|
Jun 30, |
|
Mar 31, |
|
Dec 31, |
Dec 31, |
|
Dec 31, |
(Dollars and shares in thousands) |
|
2022 |
|
|
|
2022 |
|
|
|
2022 |
|
|
|
2022 |
|
|
|
2021 |
|
|
2022 |
|
|
|
2021 |
|
Reconciliation of Non-GAAP Tangible Book Value per Common
Share: |
|
|
|
Total shareholders’ equity |
$ |
4,796,838 |
|
|
$ |
4,637,980 |
|
|
$ |
4,727,623 |
|
|
$ |
4,492,256 |
|
|
$ |
4,498,688 |
|
|
|
|
Less: Preferred stock |
|
(412,500 |
) |
|
|
(412,500 |
) |
|
|
(412,500 |
) |
|
|
(412,500 |
) |
|
|
(412,500 |
) |
|
|
|
(L) Total common equity |
$ |
4,384,338 |
|
|
$ |
4,225,480 |
|
|
$ |
4,315,123 |
|
|
$ |
4,079,756 |
|
|
$ |
4,086,188 |
|
|
|
|
(M) Actual common shares outstanding |
|
60,794 |
|
|
|
60,743 |
|
|
|
60,722 |
|
|
|
57,253 |
|
|
|
57,054 |
|
|
|
|
Book value per common share (L/M) |
$ |
72.12 |
|
|
$ |
69.56 |
|
|
$ |
71.06 |
|
|
$ |
71.26 |
|
|
$ |
71.62 |
|
|
|
|
Tangible book value per common share (non-GAAP)
(I/M) |
|
61.00 |
|
|
|
58.42 |
|
|
|
59.87 |
|
|
|
59.34 |
|
|
|
59.64 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of Non-GAAP Return on Average Tangible
Common Equity: |
|
|
|
(N) Net income applicable to common shares |
$ |
137,826 |
|
|
$ |
135,970 |
|
|
$ |
87,522 |
|
|
$ |
120,400 |
|
|
$ |
91,766 |
|
$ |
481,718 |
|
|
$ |
438,187 |
|
Add: Intangible asset amortization |
|
1,436 |
|
|
|
1,492 |
|
|
|
1,579 |
|
|
|
1,609 |
|
|
|
1,811 |
|
|
6,116 |
|
|
|
7,734 |
|
Less: Tax effect of intangible asset amortization |
|
(370 |
) |
|
|
(425 |
) |
|
|
(445 |
) |
|
|
(430 |
) |
|
|
(505 |
) |
|
(1,664 |
) |
|
|
(2,080 |
) |
After-tax intangible asset amortization |
$ |
1,066 |
|
|
$ |
1,067 |
|
|
$ |
1,134 |
|
|
$ |
1,179 |
|
|
$ |
1,306 |
|
$ |
4,452 |
|
|
$ |
5,654 |
|
(O) Tangible net income applicable to common shares (non-GAAP) |
$ |
138,892 |
|
|
$ |
137,037 |
|
|
$ |
88,656 |
|
|
$ |
121,579 |
|
|
$ |
93,072 |
|
$ |
486,170 |
|
|
$ |
443,841 |
|
Total average shareholders’ equity |
$ |
4,710,856 |
|
|
$ |
4,795,387 |
|
|
$ |
4,526,110 |
|
|
$ |
4,500,460 |
|
|
$ |
4,433,953 |
|
$ |
4,634,224 |
|
|
$ |
4,300,742 |
|
Less: Average preferred stock |
|
(412,500 |
) |
|
|
(412,500 |
) |
|
|
(412,500 |
) |
|
|
(412,500 |
) |
|
|
(412,500 |
) |
|
(412,500 |
) |
|
|
(412,500 |
) |
(P) Total average common shareholders’ equity |
$ |
4,298,356 |
|
|
$ |
4,382,887 |
|
|
$ |
4,113,610 |
|
|
$ |
4,087,960 |
|
|
$ |
4,021,453 |
|
$ |
4,221,724 |
|
|
$ |
3,888,242 |
|
Less: Average intangible assets |
|
(676,371 |
) |
|
|
(678,953 |
) |
|
|
(681,091 |
) |
|
|
(682,603 |
) |
|
|
(677,470 |
) |
|
(679,735 |
) |
|
|
(678,739 |
) |
(Q) Total average tangible common shareholders’ equity
(non-GAAP) |
$ |
3,621,985 |
|
|
$ |
3,703,934 |
|
|
$ |
3,432,519 |
|
|
$ |
3,405,357 |
|
|
$ |
3,343,983 |
|
$ |
3,541,989 |
|
|
$ |
3,209,503 |
|
Return on average common equity, annualized
(N/P) |
|
12.72 |
% |
|
|
12.31 |
% |
|
|
8.53 |
% |
|
|
11.94 |
% |
|
|
9.05 |
% |
|
11.41 |
% |
|
|
11.27 |
% |
Return on average tangible common equity, annualized
(non-GAAP) (O/Q) |
|
15.21 |
|
|
|
14.68 |
|
|
|
10.36 |
|
|
|
14.48 |
|
|
|
11.04 |
|
|
13.73 |
|
|
|
13.83 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of Non-GAAP Pre-Tax, Pre-Provision Income,
Adjusted for Changes in Fair Value of MSRs, net of economic hedge
and Early Buy-out Loans Guaranteed by U.S. Government
Agencies: |
|
|
|
|
|
Income before taxes |
$ |
195,173 |
|
|
$ |
200,041 |
|
|
$ |
131,661 |
|
|
$ |
173,680 |
|
|
$ |
137,045 |
|
$ |
700,555 |
|
|
$ |
637,796 |
|
Add: Provision for credit losses |
|
47,646 |
|
|
|
6,420 |
|
|
|
20,417 |
|
|
|
4,106 |
|
|
|
9,299 |
|
|
78,589 |
|
|
|
(59,263 |
) |
Pre-tax income, excluding provision for credit losses
(non-GAAP) |
$ |
242,819 |
|
|
$ |
206,461 |
|
|
$ |
152,078 |
|
|
$ |
177,786 |
|
|
$ |
146,344 |
|
$ |
779,144 |
|
|
$ |
578,533 |
|
Less: Changes in fair value of MSRs, net of economic hedge and
early buy-out loans guaranteed by U.S. government agencies |
|
702 |
|
|
|
2,472 |
|
|
|
(445 |
) |
|
|
(43,365 |
) |
|
|
(6,656 |
) |
|
(40,636 |
) |
|
|
(18,273 |
) |
Pre-tax income, excluding provision for credit losses,
adjusted for changes in fair value of MSRs, net of economic hedge
and early buy-out loans guaranteed by U.S. government agencies
(non-GAAP) |
$ |
243,521 |
|
|
$ |
208,933 |
|
|
$ |
151,633 |
|
|
$ |
134,421 |
|
|
$ |
139,688 |
|
$ |
738,508 |
|
|
$ |
560,260 |
|
|
Dec 31, |
|
Dec 31, |
|
Dec 31, |
|
Dec 31, |
|
Dec 31, |
|
Dec 31, |
|
Dec 31, |
|
Dec 31, |
|
Dec 31, |
|
|
2020 |
|
|
|
2019 |
|
|
|
2018 |
|
|
|
2017 |
|
|
|
2016 |
|
|
|
2015 |
|
|
|
2014 |
|
|
|
2013 |
|
|
|
2012 |
|
Reconciliation of Non-GAAP Tangible Book Value per Common
Share: |
Total shareholders’ equity |
$ |
4,115,995 |
|
|
$ |
3,691,250 |
|
|
$ |
3,267,570 |
|
|
$ |
2,976,939 |
|
|
$ |
2,695,617 |
|
|
$ |
2,352,274 |
|
|
$ |
2,069,822 |
|
|
$ |
1,900,589 |
|
|
$ |
1,804,705 |
|
Less: Non-convertible preferred stock (GAAP) |
|
(412,500 |
) |
|
|
(125,000 |
) |
|
|
(125,000 |
) |
|
|
(125,000 |
) |
|
|
(251,257 |
) |
|
|
(251,287 |
) |
|
|
(126,467 |
) |
|
|
(126,477 |
) |
|
|
(176,406 |
) |
(R) Less: Intangible assets (GAAP) |
|
(681,747 |
) |
|
|
(692,277 |
) |
|
|
(622,565 |
) |
|
|
(519,505 |
) |
|
|
(520,438 |
) |
|
|
(495,970 |
) |
|
|
(424,445 |
) |
|
|
(393,760 |
) |
|
|
(366,348 |
) |
(I) Total tangible common shareholders’ equity (non-GAAP) |
$ |
3,021,748 |
|
|
$ |
2,873,973 |
|
|
$ |
2,520,005 |
|
|
$ |
2,332,434 |
|
|
$ |
1,923,922 |
|
|
$ |
1,605,017 |
|
|
$ |
1,518,910 |
|
|
$ |
1,380,352 |
|
|
$ |
1,261,951 |
|
Actual common shares outstanding |
|
56,770 |
|
|
|
57,822 |
|
|
|
56,408 |
|
|
|
55,965 |
|
|
|
51,881 |
|
|
|
48,383 |
|
|
|
46,805 |
|
|
|
46,117 |
|
|
|
36,858 |
|
Add: Tangible equity unit conversion shares |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
6,241 |
|
(M) Common shares used for book value calculation |
|
56,770 |
|
|
|
57,822 |
|
|
|
56,408 |
|
|
|
55,965 |
|
|
|
51,881 |
|
|
|
48,383 |
|
|
|
46,805 |
|
|
|
46,117 |
|
|
|
43,099 |
|
Book value per common share ((I-R)/M) |
$ |
65.24 |
|
|
$ |
61.68 |
|
|
$ |
55.71 |
|
|
$ |
50.96 |
|
|
$ |
47.11 |
|
|
$ |
43.42 |
|
|
$ |
41.52 |
|
|
$ |
38.47 |
|
|
$ |
37.78 |
|
Tangible book value per common share (non-GAAP)
(I/M) |
|
53.23 |
|
|
|
49.70 |
|
|
|
44.67 |
|
|
|
41.68 |
|
|
|
37.08 |
|
|
|
33.17 |
|
|
|
32.45 |
|
|
|
29.93 |
|
|
|
29.28 |
|
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, Lombard, 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 the economy, our financial
results, operations and personnel, commercial activity and demand
across our business and our customers’ businesses;
- 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;
- the ability of the Company to
successfully discontinue use of LIBOR and transition to an
alternative rate for current and future transactions;
- 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, January 19, 2023 at 10:00 a.m. (CST) regarding fourth
quarter and full year 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 December 22, 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
fourth quarter and full year 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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