ROSEMONT, Ill., Oct. 17, 2023 (GLOBE NEWSWIRE)
-- Wintrust Financial Corporation (“Wintrust”, “the Company”, “we”
or “our”) (Nasdaq: WTFC) announced record net income of $499.1
million or $7.71 per diluted common share for the first nine months
of 2023 compared to net income of $364.9 million or $5.78 per
diluted common share for the same period of 2022, an increase in
diluted earnings per common share of 33%. Pre-tax, pre-provision
income (non-GAAP) for the first nine months of 2023 totaled $751.3
million as compared to $536.3 million in the first nine months of
2022, an increase in pre-tax, pre-provision income of 40%.
The Company recorded quarterly net income of
$164.2 million or $2.53 per diluted common share for the third
quarter of 2023, an increase in diluted earnings per common share
of 6% compared to the second quarter of 2023 and 14% compared to
the third quarter of 2022. Pre-tax, pre-provision income (non-GAAP)
totaled $244.8 million as compared to $239.9 million for the second
quarter of 2023 and $206.5 million for the third quarter of
2022.
Timothy S. Crane, President and Chief Executive
Officer, commented, “As demonstrated by our strong results, we
followed our record first half of 2023 with continued momentum in
the third quarter of 2023. We leveraged our position in the markets
we serve to sustain growth in loans and deposits during the
quarter.”
Additionally, Mr. Crane noted, “Our net interest
margin for the quarter was within our expected range, down slightly
due primarily to the impact of hedging activities. In the current
interest rate environment, we expect to maintain our net interest
margin within a narrow range around current levels for the
remainder of 2023 and continuing into the beginning of 2024. We
believe this growth and stability in net interest margin will drive
strong financial performance in future quarters.”
Highlights of the third quarter of
2023:
Comparative information to the second quarter of 2023, unless
otherwise noted
- Total deposits grew by approximately $1 billion, or 9%
annualized.
- Total loans increased by approximately $423 million, or 4%
annualized. Adjusting for the impact of a loan sale transaction
within our property and casualty insurance premium finance
receivables portfolio during the third quarter of 2023, total loans
would have increased $767 million, or 7% annualized.
- Record quarterly net interest income of $462.4 million,
increasing approximately $14.8 million primarily due to strong
growth in earning assets.
- Net interest margin decreased four basis points to 3.60% (3.62%
on a fully taxable-equivalent basis, non-GAAP) during the third
quarter of 2023 primarily due to the negative impact of hedging
activities.
- Non-interest expense was negatively impacted by:
- Occupancy costs of approximately $2.9 million from the
impairment of two Company-owned buildings that are no longer being
used.
- Data processing costs of approximately $1.5 million from the
termination of a duplicate service contract related to the
acquisition of a wealth management business in 2023.
- Other salary costs of approximately $1.6 million related to
acquisition-related severance charges and other contractually due
compensation costs.
- Provision for credit losses totaled $19.9 million in the third
quarter of 2023 as compared to a provision for credit losses of
$28.5 million in the second quarter of 2023.
- Net charge-offs totaled $8.1 million or eight basis points of
average total loans on an annualized basis in the third quarter of
2023 as compared to $17.0 million or 17 basis points of average
total loans on an annualized basis in the second quarter of
2023.
Mr. Crane commented, “By leveraging our customer
relationships, market positioning, diversified products and
competitive rates, we continued to generate significant deposit
growth, increasing deposits approximately $1 billion, or 9% on an
annualized basis, in the third quarter of 2023. Growth in retail
deposits helped reduce our level of brokered deposits by
approximately $392 million during the third quarter of 2023. In
addition, deposit growth helped fund approximately $423 million of
loan growth during the quarter. This strong loan growth was
achieved despite the impact of a loan sale transaction within
our property and casualty insurance premium finance receivables
portfolio that reduced period-end balances at the end of the third
quarter by approximately $344 million. Loan growth came
primarily from draws on existing commercial real estate loan
facilities as well as growth in our commercial portfolio.
Additionally, despite the loan sale transaction noted above, our
property and casualty insurance premium finance receivables
portfolio ended the quarter relatively unchanged. We remain prudent
in our review of credit prospects ensuring our loan growth stays
within our conservative credit standards.”
Mr. Crane noted, “We grew our net interest
income during the third quarter of 2023 by approximately $14.8
million primarily due to an increase in average earning assets of
approximately $1.6 billion. Our net interest margin decreased four
basis points during the third quarter, however, three basis points
of the decline was due to the impact of our interest rate hedging
strategies, which are designed to protect our net interest income
if interest rates decline. Deposit pricing pressures moderated in
the third quarter of 2023 and we expect that to continue into the
fourth quarter. Assuming a similar interest rate environment, we
believe our net interest margin will be relatively stable for the
remainder of 2023 and entering 2024. The combination of balance
sheet growth and a stable net interest margin is expected to
continue to grow our net interest income.”
Commenting on credit quality, Mr. Crane stated,
“Credit metrics remained strong and at historically low levels. Net
charge-offs totaled $8.1 million or eight basis points of average
total loans on an annualized basis in the third quarter of 2023 as
compared to $17.0 million or 17 basis points of average total loans
on an annualized basis in the second quarter of 2023.
Non-performing loans totaled $133.1 million, or 0.32% of total
loans, at the end of the third quarter of 2023 compared to $108.7
million, or 0.26% of total loans, at the end of the second quarter
of 2023. Of the $24.4 million increase in non-performing loans in
the third quarter of 2023, $19.6 million is related to the premium
finance receivables portfolios in which we ultimately expect
minimal losses. The allowance for credit losses on our core loan
portfolio as of September 30, 2023 was approximately 1.51% of the
outstanding balance (see Table 12 for additional information). We
believe that the Company’s reserves remain appropriate and we
remain diligent in our review of credit.”
Mr. Crane concluded, “I am very pleased with our
results for the third quarter of 2023. Net income for the quarter
was the second highest in our history, behind only the net income
reported in the first quarter of 2023. Total loans as of September
30, 2023 were $739 million higher than average total loans in the
third quarter of 2023, which is expected to help continue our
momentum into the fourth quarter. We continue to win business and
expand our franchise, keeping us well-positioned in the markets we
serve. This will help grow our deposit and loan relationships,
which should generate higher net revenues and earnings in the
coming quarters. As a result, our capital ratios will benefit from
the increased earnings.”
The graphs below illustrate certain financial
highlights of the third quarter of 2023 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/c2b726e7-3c69-483b-b815-c3e18b1fa57f
SUMMARY OF RESULTS:
BALANCE SHEET
Total assets increased $1.3 billion in the third
quarter of 2023 as compared to the second quarter of 2023. Total
loans increased by $422.6 million as compared to the second quarter
of 2023. The increase in loans was primarily the result of draws on
existing commercial real estate loan facilities as well as growth
in the commercial portfolio. Additionally, despite a loan sale
transaction that reduced outstanding balances at the end of the
third quarter of 2023 by $344 million, the property and
casualty insurance premium finance receivables portfolio ended the
quarter relatively unchanged. In the third quarter of 2023, the
Company purchased securities, resulting in a $480.7 million
increase in investment securities.
Total liabilities increased by $1.3 billion in
the third quarter of 2023 as compared to the second quarter of 2023
primarily due to a $1.0 billion increase in total deposits.
Non-interest bearing deposits as a percentage of total deposits was
23% at September 30, 2023 compared to 24% at June 30, 2023 as
deposit growth came primarily from interest bearing deposit
categories. Net outflows from non-interest bearing deposits
stabilized during the third quarter of 2023 as average non-interest
bearing deposits during the third quarter of 2023 essentially
equaled the amount at the end of the second quarter of 2023 at
$10.6 billion.
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 third quarter of 2023, net interest
income totaled $462.4 million, an increase of $14.8 million as
compared to the second quarter of 2023. The $14.8 million increase
in net interest income in the third quarter of 2023 compared to the
second quarter of 2023 was primarily due to a $1.6 billion increase
in average earning assets and one additional day in the
quarter.
Net interest margin was 3.60% (3.62% on a fully
taxable-equivalent basis, non-GAAP) during the third quarter of
2023 compared to 3.64% (3.66% on a fully taxable-equivalent basis,
non-GAAP) during the second quarter of 2023. The net interest
margin decrease as compared to the second quarter of 2023 was
primarily due to the negative impact of hedging activities as well
as a 36 basis point increase in the rate paid on interest-bearing
liabilities. This decrease was partially offset by a 27 basis point
increase in yield on earning assets and a five basis point increase
in the net free funds contribution. The 36 basis point increase on
the rate paid on interest-bearing liabilities in the third quarter
of 2023 as compared to the second quarter of 2023 was primarily due
to a 41 basis point increase in the rate paid on interest-bearing
deposits primarily related to the increasing rate environment. The
27 basis point increase in the yield on earning assets in the third
quarter of 2023 as compared to the second quarter of 2023 was
primarily due to a 28 basis point expansion on loan yields and 41
basis point increase in liquidity management asset yield.
For more information regarding net interest
income, see Table 4 through Table 8 in this report.
ASSET QUALITY
The allowance for credit losses totaled $399.5
million as of September 30, 2023, an increase of $11.7 million
as compared to $387.8 million as of June 30, 2023. A provision
for credit losses totaling $19.9 million was recorded for the third
quarter of 2023 as compared to $28.5 million recorded in the second
quarter of 2023. For more information regarding the allowance for
credit losses and provision for credit losses, see Table 11 in
this report.
Management believes the allowance for credit
losses is appropriate to account for expected credit losses. The
Current Expected Credit Losses (“CECL”) accounting standard
requires the Company to estimate expected credit losses over the
life of the Company’s financial assets as of the reporting date.
There can be no assurances, however, that future losses will not
significantly exceed the amounts provided for, thereby affecting
future results of operations. A summary of the allowance for credit
losses calculated for the loan components in each portfolio as of
September 30, 2023, June 30, 2023, and March 31,
2023 is shown on Table 12 of this report.
Net charge-offs totaled $8.1 million in the
third quarter of 2023, as compared to $17.0 million of net
charge-offs in the second quarter of 2023. The decrease in net
charge-offs during the third quarter of 2023 was primarily the
result of the sale to external parties of certain credits within
the commercial real estate portfolio during the second quarter of
2023, which resulted in approximately $8.0 million in charge-offs.
Net charge-offs as a percentage of average total loans were eight
basis points in the third quarter of 2023 on an annualized basis
compared to 17 basis points on an annualized basis in the second
quarter of 2023. 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.
Non-performing assets totaled $147.2 million and
comprised 0.26% of total assets as of September 30, 2023, as
compared to $120.3 million as of June 30, 2023. Non-performing
loans totaled $133.1 million, or 0.32% of total loans, at
September 30, 2023. The increase in the third quarter was
primarily due to an increase in loans 90 days or more past due but
still fully collateralized within the life insurance premium
finance receivables portfolio, and certain credits within the
property and casualty insurance premium finance receivables
portfolio becoming nonaccrual. For more information regarding
non-performing assets, see Table 14 in this report.
NON-INTEREST INCOME
Wealth management revenue was relatively stable
in the third quarter of 2023 as compared to the second quarter of
2023. Wealth management revenue is comprised of the trust and asset
management revenue of The Chicago Trust Company and Great Lakes
Advisors, the brokerage commissions, managed money fees and
insurance product commissions at Wintrust Investments and fees from
tax-deferred like-kind exchange services provided by the Chicago
Deferred Exchange Company.
Mortgage banking revenue decreased by $2.6
million in the third quarter of 2023 as compared to the second
quarter of 2023 primarily due to an unfavorable valuation related
change in 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. This was partially offset by increased
production revenue and a more favorable adjustments to the fair
value of mortgage servicing rights compared to the second quarter
of 2023. The Company monitors the relationship of these assets and
seeks to minimize the earnings impact of fair value changes.
The Company recognized $2.4 million in net
losses on investment securities in the third quarter of 2023 as
compared to nominal gains in the second quarter of 2023.
Fees from covered call options increased by $1.6
million in the third quarter of 2023 as compared to the second
quarter of 2023. 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 $7.4 million in the third quarter of 2023 as compared to the
second quarter of 2023. The $7.4 million increase is primarily
related to higher salary expense and incentive compensation expense
due to elevated bonus accruals in the third quarter of 2023 as well
as other salary costs of approximately $1.6 million related to
acquisition-related severance charges and other contractually due
compensation costs.
Operating lease equipment cost increased $2.2
million in the third quarter of 2023 as compared to the second
quarter of 2023 primarily due to the impairment of certain assets
during the period.
Occupancy expenses increased $2.1 million in the
third quarter of 2023 as compared to the second quarter of 2023
primarily due to the impairment of two Company-owned buildings that
are no longer being used.
Data processing expense increased $1.0 million
in the third quarter of 2023 as compared to the second quarter of
2023 primarily due to the termination of a duplicate service
contract related to the acquisition of a wealth management business
in 2023.
Lending expenses, net of deferred origination
costs, decreased by $3.1 million as compared to the second
quarter of 2023 primarily due to higher loan originations in the
second quarter of 2023.
Miscellaneous expense in the third quarter of
2023 decreased by $1.0 million as compared to the second quarter of
2023. 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 $60.7
million in the third quarter of 2023 compared to $56.7 million in
the second quarter of 2023. The effective tax rates were 26.98% in
the third quarter of 2023 compared to 26.81% in the second quarter
of 2023.
BUSINESS UNIT SUMMARY
Community Banking
Through its community banking unit, the Company
provides banking and financial services primarily to individuals,
small to mid-sized businesses, local governmental units and
institutional clients residing primarily in the local areas the
Company services. In the third quarter of 2023, this unit expanded
its commercial, commercial real estate and residential real estate
loan portfolios and grew retail deposits.
Mortgage banking revenue was $27.4 million for
the third quarter of 2023, a decrease of $2.6 million as compared
to the second quarter of 2023, primarily due to an unfavorable
valuation related change in 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. Service charges on deposit
accounts totaled $14.2 million in the third quarter of 2023, an
increase of $609,000 as compared to the second quarter of 2023,
primarily due to higher fees associated with commercial account
activity. The Company’s gross commercial and commercial real estate
loan pipelines remained solid as of September 30, 2023
indicating momentum for expected continued loan growth in the
fourth 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 $4.6 billion during
the third quarter of 2023 and average balances increased by $444.0
million as compared to the second quarter of 2023. The Company’s
leasing portfolio balance increased in the third quarter of 2023,
with its portfolio of assets, including capital leases, loans and
equipment on operating leases, totaling $3.3 billion as of
September 30, 2023 as compared to $3.1 billion as of
June 30, 2023. Revenues from the Company’s out-sourced
administrative services business were $1.3 million in the third
quarter of 2023, an increase of $17,000 from the second quarter of
2023.
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 $33.5 million in the
third quarter of 2023, which was relatively stable compared to the
second quarter of 2023. At September 30, 2023, the Company’s
wealth management subsidiaries had approximately $44.7 billion of
assets under administration, which included $8.3 billion of assets
owned by the Company and its subsidiary banks, representing an
increase from the $44.5 billion of assets under administration at
June 30, 2023.
ITEM IMPACTING COMPARATIVE FINANCIAL
RESULTS
Business Combination
On April 3, 2023, the Company completed its
acquisition of Rothschild & Co Asset Management US Inc. and
Rothschild & Co Risk Based Investments LLC from Rothschild
& Co North America Inc. As the transaction was determined to be
a business combination, the Company recorded goodwill of
approximately $2.6 million on the purchase.
WINTRUST FINANCIAL CORPORATION
Key Operating
Measures
Wintrust’s key operating measures and growth
rates for the third quarter of 2023, as compared to the second
quarter of 2023 (sequential quarter) and third quarter of 2022
(linked quarter), are shown in the table below:
|
|
|
|
|
|
|
% or (1)
basis point (bp) change from
2nd Quarter
2023 |
|
% or (1)
basis point (bp) change from
3rd Quarter
2022 |
|
|
Three Months Ended |
|
(Dollars in thousands, except per share data) |
|
Sep 30, 2023 |
|
Jun 30, 2023 |
|
Sep 30, 2022 |
|
Net income |
|
$ |
164,198 |
|
|
$ |
154,750 |
|
|
$ |
142,961 |
|
6 |
|
% |
|
15 |
% |
Pre-tax
income, excluding provision for credit losses (non-GAAP)
(2) |
|
|
244,781 |
|
|
|
239,944 |
|
|
|
206,461 |
|
2 |
|
|
|
19 |
|
Net
income per common share – Diluted |
|
|
2.53 |
|
|
|
2.38 |
|
|
|
2.21 |
|
6 |
|
|
|
14 |
|
Cash
dividends declared per common share |
|
|
0.40 |
|
|
|
0.40 |
|
|
|
0.34 |
|
— |
|
|
|
18 |
|
Net
revenue (3) |
|
|
574,836 |
|
|
|
560,567 |
|
|
|
502,930 |
|
3 |
|
|
|
14 |
|
Net
interest income |
|
|
462,358 |
|
|
|
447,537 |
|
|
|
401,448 |
|
3 |
|
|
|
15 |
|
Net
interest margin |
|
|
3.60 |
% |
|
|
3.64 |
% |
|
|
3.34 |
% |
(4 |
) |
bps |
|
26 |
bps |
Net
interest margin – fully taxable-equivalent (non-GAAP)
(2) |
|
|
3.62 |
|
|
|
3.66 |
|
|
|
3.35 |
|
(4 |
) |
|
|
27 |
|
Net
overhead ratio (4) |
|
|
1.59 |
|
|
|
1.58 |
|
|
|
1.53 |
|
1 |
|
|
|
6 |
|
Return on
average assets |
|
|
1.20 |
|
|
|
1.18 |
|
|
|
1.12 |
|
2 |
|
|
|
8 |
|
Return on
average common equity |
|
|
13.35 |
|
|
|
12.79 |
|
|
|
12.31 |
|
56 |
|
|
|
104 |
|
Return on average tangible common equity (non-GAAP)
(2) |
|
|
15.73 |
|
|
|
15.12 |
|
|
|
14.68 |
|
61 |
|
|
|
105 |
|
At end of period |
|
|
|
|
|
|
|
|
|
|
|
Total
assets |
|
$ |
55,555,246 |
|
|
$ |
54,286,176 |
|
|
$ |
52,382,939 |
|
9 |
|
% |
|
6 |
% |
Total
loans (5) |
|
|
41,446,032 |
|
|
|
41,023,408 |
|
|
|
38,167,613 |
|
4 |
|
|
|
9 |
|
Total
deposits |
|
|
44,992,686 |
|
|
|
44,038,707 |
|
|
|
42,797,191 |
|
9 |
|
|
|
5 |
|
Total shareholders’ equity |
|
|
5,015,613 |
|
|
|
5,041,912 |
|
|
|
4,637,980 |
|
(2 |
) |
|
|
8 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(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 |
Nine Months Ended |
(Dollars in thousands, except per share data) |
|
Sep 30,
2023 |
|
Jun 30,
2023 |
|
Mar 31,
2023 |
|
Dec 31,
2022 |
|
Sep 30,
2022 |
Sep 30,
2023 |
|
Sep 30,
2022 |
Selected Financial Condition Data (at end of
period): |
|
|
|
Total
assets |
|
$ |
55,555,246 |
|
|
$ |
54,286,176 |
|
|
$ |
52,873,511 |
|
|
$ |
52,949,649 |
|
|
$ |
52,382,939 |
|
|
|
|
Total
loans (1) |
|
|
41,446,032 |
|
|
|
41,023,408 |
|
|
|
39,565,471 |
|
|
|
39,196,485 |
|
|
|
38,167,613 |
|
|
|
|
Total
deposits |
|
|
44,992,686 |
|
|
|
44,038,707 |
|
|
|
42,718,211 |
|
|
|
42,902,544 |
|
|
|
42,797,191 |
|
|
|
|
Total shareholders’ equity |
|
|
5,015,613 |
|
|
|
5,041,912 |
|
|
|
5,015,506 |
|
|
|
4,796,838 |
|
|
|
4,637,980 |
|
|
|
|
Selected Statements of Income Data: |
|
|
|
Net interest income |
|
$ |
462,358 |
|
|
$ |
447,537 |
|
|
$ |
457,995 |
|
|
$ |
456,816 |
|
|
$ |
401,448 |
|
$ |
1,367,890 |
|
|
$ |
1,038,546 |
|
Net
revenue (2) |
|
|
574,836 |
|
|
|
560,567 |
|
|
|
565,764 |
|
|
|
550,655 |
|
|
|
502,930 |
|
|
1,701,167 |
|
|
|
1,405,760 |
|
Net
income |
|
|
164,198 |
|
|
|
154,750 |
|
|
|
180,198 |
|
|
|
144,817 |
|
|
|
142,961 |
|
|
499,146 |
|
|
|
364,865 |
|
Pre-tax
income, excluding provision for credit losses (non-GAAP)
(3) |
|
|
244,781 |
|
|
|
239,944 |
|
|
|
266,595 |
|
|
|
242,819 |
|
|
|
206,461 |
|
|
751,320 |
|
|
|
536,325 |
|
Net
income per common share – Basic |
|
|
2.57 |
|
|
|
2.41 |
|
|
|
2.84 |
|
|
|
2.27 |
|
|
|
2.24 |
|
|
7.82 |
|
|
|
5.86 |
|
Net
income per common share – Diluted |
|
|
2.53 |
|
|
|
2.38 |
|
|
|
2.80 |
|
|
|
2.23 |
|
|
|
2.21 |
|
|
7.71 |
|
|
|
5.78 |
|
Cash dividends declared per common share |
|
|
0.40 |
|
|
|
0.40 |
|
|
|
0.40 |
|
|
|
0.34 |
|
|
|
0.34 |
|
|
1.20 |
|
|
|
1.02 |
|
Selected Financial Ratios and Other Data: |
|
|
|
Performance Ratios: |
|
|
|
Net
interest margin |
|
|
3.60 |
% |
|
|
3.64 |
% |
|
|
3.81 |
% |
|
|
3.71 |
% |
|
|
3.34 |
% |
|
3.68 |
% |
|
|
2.96 |
% |
Net
interest margin – fully taxable-equivalent (non-GAAP)
(3) |
|
|
3.62 |
|
|
|
3.66 |
|
|
|
3.83 |
|
|
|
3.73 |
|
|
|
3.35 |
|
|
3.70 |
|
|
|
2.97 |
|
Non-interest income to average assets |
|
|
0.82 |
|
|
|
0.86 |
|
|
|
0.84 |
|
|
|
0.71 |
|
|
|
0.79 |
|
|
0.84 |
|
|
|
0.98 |
|
Non-interest expense to average assets |
|
|
2.41 |
|
|
|
2.44 |
|
|
|
2.33 |
|
|
|
2.34 |
|
|
|
2.32 |
|
|
2.39 |
|
|
|
2.33 |
|
Net
overhead ratio (4) |
|
|
1.59 |
|
|
|
1.58 |
|
|
|
1.49 |
|
|
|
1.63 |
|
|
|
1.53 |
|
|
1.55 |
|
|
|
1.35 |
|
Return on
average assets |
|
|
1.20 |
|
|
|
1.18 |
|
|
|
1.40 |
|
|
|
1.10 |
|
|
|
1.12 |
|
|
1.26 |
|
|
|
0.98 |
|
Return on
average common equity |
|
|
13.35 |
|
|
|
12.79 |
|
|
|
15.67 |
|
|
|
12.72 |
|
|
|
12.31 |
|
|
13.91 |
|
|
|
10.96 |
|
Return on
average tangible common equity (non-GAAP) (3) |
|
|
15.73 |
|
|
|
15.12 |
|
|
|
18.55 |
|
|
|
15.21 |
|
|
|
14.68 |
|
|
16.43 |
|
|
|
13.21 |
|
Average
total assets |
|
$ |
54,381,981 |
|
|
$ |
52,601,953 |
|
|
$ |
52,075,318 |
|
|
$ |
52,087,618 |
|
|
$ |
50,722,694 |
|
$ |
53,028,199 |
|
|
$ |
49,863,793 |
|
Average
total shareholders’ equity |
|
|
5,083,883 |
|
|
|
5,044,718 |
|
|
|
4,895,271 |
|
|
|
4,710,856 |
|
|
|
4,795,387 |
|
|
5,008,648 |
|
|
|
4,608,399 |
|
Average
loans to average deposits ratio |
|
|
92.4 |
% |
|
|
94.3 |
% |
|
|
93.0 |
% |
|
|
90.5 |
% |
|
|
88.8 |
% |
|
93.2 |
% |
|
|
86.5 |
% |
Period-end loans to deposits ratio |
|
|
92.1 |
|
|
|
93.2 |
|
|
|
92.6 |
|
|
|
91.4 |
|
|
|
89.2 |
|
|
|
|
Common Share Data at end of period: |
|
|
|
Market
price per common share |
|
$ |
75.50 |
|
|
$ |
72.62 |
|
|
$ |
72.95 |
|
|
$ |
84.52 |
|
|
$ |
81.55 |
|
|
|
|
Book
value per common share |
|
|
75.19 |
|
|
|
75.65 |
|
|
|
75.24 |
|
|
|
72.12 |
|
|
|
69.56 |
|
|
|
|
Tangible
book value per common share (non-GAAP) (3) |
|
|
64.07 |
|
|
|
64.50 |
|
|
|
64.22 |
|
|
|
61.00 |
|
|
|
58.42 |
|
|
|
|
Common shares outstanding |
|
|
61,222,058 |
|
|
|
61,197,676 |
|
|
|
61,176,415 |
|
|
|
60,794,008 |
|
|
|
60,743,335 |
|
|
|
|
Other
Data at end of period: |
|
|
|
Tier 1
leverage ratio (5) |
|
|
9.2 |
% |
|
|
9.3 |
% |
|
|
9.1 |
% |
|
|
8.8 |
% |
|
|
8.8 |
% |
|
|
|
Risk-based capital ratios: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Tier 1
capital ratio (5) |
|
|
10.2 |
|
|
|
10.1 |
|
|
|
10.1 |
|
|
|
10.0 |
|
|
|
9.9 |
|
|
|
|
Common
equity tier 1 capital ratio (5) |
|
|
9.3 |
|
|
|
9.3 |
|
|
|
9.2 |
|
|
|
9.1 |
|
|
|
9.0 |
|
|
|
|
Total
capital ratio (5) |
|
|
12.0 |
|
|
|
12.0 |
|
|
|
12.1 |
|
|
|
11.9 |
|
|
|
11.8 |
|
|
|
|
Allowance
for credit losses (6) |
|
$ |
399,531 |
|
|
$ |
387,786 |
|
|
$ |
376,261 |
|
|
$ |
357,936 |
|
|
$ |
315,338 |
|
|
|
|
Allowance
for loan and unfunded lending-related commitment losses to total
loans |
|
|
0.96 |
% |
|
|
0.94 |
% |
|
|
0.95 |
% |
|
|
0.91 |
% |
|
|
0.83 |
% |
|
|
|
Number
of: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Bank subsidiaries |
|
|
15 |
|
|
|
15 |
|
|
|
15 |
|
|
|
15 |
|
|
|
15 |
|
|
|
|
Banking offices |
|
|
174 |
|
|
|
175 |
|
|
|
174 |
|
|
|
174 |
|
|
|
174 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Excludes mortgage loans
held-for-sale.
(2) Net revenue is net
interest income plus 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) |
|
|
Sep 30, |
|
Jun 30, |
|
Mar 31, |
|
Dec 31, |
|
Sep 30, |
(In thousands) |
|
|
2023 |
|
|
|
2023 |
|
|
|
2023 |
|
|
|
2022 |
|
|
|
2022 |
|
Assets |
|
|
|
|
|
|
|
|
|
|
Cash and
due from banks |
|
$ |
418,088 |
|
|
$ |
513,858 |
|
|
$ |
445,928 |
|
|
$ |
490,908 |
|
|
$ |
489,590 |
|
Federal
funds sold and securities purchased under resale agreements |
|
|
60 |
|
|
|
59 |
|
|
|
58 |
|
|
|
58 |
|
|
|
57 |
|
Interest-bearing deposits with banks |
|
|
2,448,570 |
|
|
|
2,163,708 |
|
|
|
1,563,578 |
|
|
|
1,988,719 |
|
|
|
3,968,605 |
|
Available-for-sale securities, at fair value |
|
|
3,611,835 |
|
|
|
3,492,481 |
|
|
|
3,259,845 |
|
|
|
3,243,017 |
|
|
|
2,923,653 |
|
Held-to-maturity securities, at amortized cost |
|
|
3,909,150 |
|
|
|
3,564,473 |
|
|
|
3,606,391 |
|
|
|
3,640,567 |
|
|
|
3,389,842 |
|
Trading
account securities |
|
|
1,663 |
|
|
|
3,027 |
|
|
|
102 |
|
|
|
1,127 |
|
|
|
179 |
|
Equity
securities with readily determinable fair value |
|
|
134,310 |
|
|
|
116,275 |
|
|
|
111,943 |
|
|
|
110,365 |
|
|
|
114,012 |
|
Federal
Home Loan Bank and Federal Reserve Bank stock |
|
|
204,040 |
|
|
|
195,117 |
|
|
|
244,957 |
|
|
|
224,759 |
|
|
|
178,156 |
|
Brokerage
customer receivables |
|
|
14,042 |
|
|
|
15,722 |
|
|
|
16,042 |
|
|
|
16,387 |
|
|
|
20,327 |
|
Mortgage
loans held-for-sale, at fair value |
|
|
304,808 |
|
|
|
338,728 |
|
|
|
302,493 |
|
|
|
299,935 |
|
|
|
376,160 |
|
Loans,
net of unearned income |
|
|
41,446,032 |
|
|
|
41,023,408 |
|
|
|
39,565,471 |
|
|
|
39,196,485 |
|
|
|
38,167,613 |
|
Allowance
for loan losses |
|
|
(315,039 |
) |
|
|
(302,499 |
) |
|
|
(287,972 |
) |
|
|
(270,173 |
) |
|
|
(246,110 |
) |
Net loans |
|
|
41,130,993 |
|
|
|
40,720,909 |
|
|
|
39,277,499 |
|
|
|
38,926,312 |
|
|
|
37,921,503 |
|
Premises,
software and equipment, net |
|
|
747,501 |
|
|
|
749,393 |
|
|
|
760,283 |
|
|
|
764,798 |
|
|
|
763,029 |
|
Lease
investments, net |
|
|
275,152 |
|
|
|
274,351 |
|
|
|
256,301 |
|
|
|
253,928 |
|
|
|
244,822 |
|
Accrued
interest receivable and other assets |
|
|
1,674,681 |
|
|
|
1,455,748 |
|
|
|
1,413,795 |
|
|
|
1,391,342 |
|
|
|
1,316,305 |
|
Trade
date securities receivable |
|
|
— |
|
|
|
— |
|
|
|
939,758 |
|
|
|
921,717 |
|
|
|
— |
|
Goodwill |
|
|
656,109 |
|
|
|
656,674 |
|
|
|
653,587 |
|
|
|
653,524 |
|
|
|
653,079 |
|
Other
acquisition-related intangible assets |
|
|
24,244 |
|
|
|
25,653 |
|
|
|
20,951 |
|
|
|
22,186 |
|
|
|
23,620 |
|
Total assets |
|
$ |
55,555,246 |
|
|
$ |
54,286,176 |
|
|
$ |
52,873,511 |
|
|
$ |
52,949,649 |
|
|
$ |
52,382,939 |
|
Liabilities and Shareholders’ Equity |
|
|
|
|
|
|
|
|
|
|
Deposits: |
|
|
|
|
|
|
|
|
|
|
Non-interest-bearing |
|
$ |
10,347,006 |
|
|
$ |
10,604,915 |
|
|
$ |
11,236,083 |
|
|
$ |
12,668,160 |
|
|
$ |
13,529,277 |
|
Interest-bearing |
|
|
34,645,680 |
|
|
|
33,433,792 |
|
|
|
31,482,128 |
|
|
|
30,234,384 |
|
|
|
29,267,914 |
|
Total deposits |
|
|
44,992,686 |
|
|
|
44,038,707 |
|
|
|
42,718,211 |
|
|
|
42,902,544 |
|
|
|
42,797,191 |
|
Federal
Home Loan Bank advances |
|
|
2,326,071 |
|
|
|
2,026,071 |
|
|
|
2,316,071 |
|
|
|
2,316,071 |
|
|
|
2,316,071 |
|
Other
borrowings |
|
|
643,999 |
|
|
|
665,219 |
|
|
|
583,548 |
|
|
|
596,614 |
|
|
|
447,215 |
|
Subordinated notes |
|
|
437,731 |
|
|
|
437,628 |
|
|
|
437,493 |
|
|
|
437,392 |
|
|
|
437,260 |
|
Junior
subordinated debentures |
|
|
253,566 |
|
|
|
253,566 |
|
|
|
253,566 |
|
|
|
253,566 |
|
|
|
253,566 |
|
Accrued
interest payable and other liabilities |
|
|
1,885,580 |
|
|
|
1,823,073 |
|
|
|
1,549,116 |
|
|
|
1,646,624 |
|
|
|
1,493,656 |
|
Total liabilities |
|
|
50,539,633 |
|
|
|
49,244,264 |
|
|
|
47,858,005 |
|
|
|
48,152,811 |
|
|
|
47,744,959 |
|
Shareholders’ Equity: |
|
|
|
|
|
|
|
|
|
|
Preferred stock |
|
|
412,500 |
|
|
|
412,500 |
|
|
|
412,500 |
|
|
|
412,500 |
|
|
|
412,500 |
|
Common stock |
|
|
61,244 |
|
|
|
61,219 |
|
|
|
61,198 |
|
|
|
60,797 |
|
|
|
60,743 |
|
Surplus |
|
|
1,933,226 |
|
|
|
1,923,623 |
|
|
|
1,913,947 |
|
|
|
1,902,474 |
|
|
|
1,891,621 |
|
Treasury stock |
|
|
(1,966 |
) |
|
|
(1,966 |
) |
|
|
(1,966 |
) |
|
|
(304 |
) |
|
|
— |
|
Retained earnings |
|
|
3,253,332 |
|
|
|
3,120,626 |
|
|
|
2,997,263 |
|
|
|
2,849,007 |
|
|
|
2,731,844 |
|
Accumulated other comprehensive loss |
|
|
(642,723 |
) |
|
|
(474,090 |
) |
|
|
(367,436 |
) |
|
|
(427,636 |
) |
|
|
(458,728 |
) |
Total shareholders’ equity |
|
|
5,015,613 |
|
|
|
5,041,912 |
|
|
|
5,015,506 |
|
|
|
4,796,838 |
|
|
|
4,637,980 |
|
Total liabilities and shareholders’ equity |
|
$ |
55,555,246 |
|
|
$ |
54,286,176 |
|
|
$ |
52,873,511 |
|
|
$ |
52,949,649 |
|
|
$ |
52,382,939 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
WINTRUST FINANCIAL CORPORATION AND
SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME
(UNAUDITED)
|
Three Months Ended |
Nine Months Ended |
(Dollars in thousands, except per share data) |
Sep 30,
2023 |
|
Jun 30,
2023 |
|
Mar 31,
2023 |
|
Dec 31,
2022 |
|
Sep 30,
2022 |
Sep 30,
2023 |
|
Sep 30,
2022 |
Interest income |
|
|
|
|
|
|
|
|
|
|
|
|
Interest and fees on loans |
$ |
666,260 |
|
|
$ |
621,057 |
|
$ |
558,692 |
|
|
$ |
498,838 |
|
|
$ |
402,689 |
|
$ |
1,846,009 |
|
|
$ |
1,008,888 |
|
Mortgage loans held-for-sale |
|
4,767 |
|
|
|
4,178 |
|
|
3,528 |
|
|
|
3,997 |
|
|
|
5,371 |
|
|
12,473 |
|
|
|
17,198 |
|
Interest-bearing deposits with banks |
|
26,866 |
|
|
|
16,882 |
|
|
13,468 |
|
|
|
20,349 |
|
|
|
15,621 |
|
|
57,216 |
|
|
|
23,098 |
|
Federal funds sold and securities purchased under resale
agreements |
|
1,157 |
|
|
|
1 |
|
|
70 |
|
|
|
1,263 |
|
|
|
1,845 |
|
|
1,228 |
|
|
|
3,640 |
|
Investment securities |
|
59,164 |
|
|
|
51,243 |
|
|
59,943 |
|
|
|
53,092 |
|
|
|
38,569 |
|
|
170,350 |
|
|
|
107,508 |
|
Trading account securities |
|
6 |
|
|
|
6 |
|
|
14 |
|
|
|
6 |
|
|
|
7 |
|
|
26 |
|
|
|
16 |
|
Federal Home Loan Bank and Federal Reserve Bank stock |
|
3,896 |
|
|
|
3,544 |
|
|
3,680 |
|
|
|
2,918 |
|
|
|
2,109 |
|
|
11,120 |
|
|
|
5,704 |
|
Brokerage customer receivables |
|
284 |
|
|
|
265 |
|
|
295 |
|
|
|
282 |
|
|
|
267 |
|
|
844 |
|
|
|
646 |
|
Total interest income |
|
762,400 |
|
|
|
697,176 |
|
|
639,690 |
|
|
|
580,745 |
|
|
|
466,478 |
|
|
2,099,266 |
|
|
|
1,166,698 |
|
Interest expense |
|
|
|
|
|
|
|
|
|
|
|
|
Interest on deposits |
|
262,783 |
|
|
|
213,495 |
|
|
144,802 |
|
|
|
95,447 |
|
|
|
45,916 |
|
|
621,080 |
|
|
|
79,755 |
|
Interest on Federal Home Loan Bank advances |
|
17,436 |
|
|
|
17,399 |
|
|
19,135 |
|
|
|
13,823 |
|
|
|
6,812 |
|
|
53,970 |
|
|
|
16,506 |
|
Interest on other borrowings |
|
9,384 |
|
|
|
8,485 |
|
|
7,854 |
|
|
|
5,313 |
|
|
|
4,008 |
|
|
25,723 |
|
|
|
8,981 |
|
Interest on subordinated notes |
|
5,491 |
|
|
|
5,523 |
|
|
5,488 |
|
|
|
5,520 |
|
|
|
5,485 |
|
|
16,502 |
|
|
|
16,484 |
|
Interest on junior subordinated debentures |
|
4,948 |
|
|
|
4,737 |
|
|
4,416 |
|
|
|
3,826 |
|
|
|
2,809 |
|
|
14,101 |
|
|
|
6,426 |
|
Total interest expense |
|
300,042 |
|
|
|
249,639 |
|
|
181,695 |
|
|
|
123,929 |
|
|
|
65,030 |
|
|
731,376 |
|
|
|
128,152 |
|
Net interest income |
|
462,358 |
|
|
|
447,537 |
|
|
457,995 |
|
|
|
456,816 |
|
|
|
401,448 |
|
|
1,367,890 |
|
|
|
1,038,546 |
|
Provision
for credit losses |
|
19,923 |
|
|
|
28,514 |
|
|
23,045 |
|
|
|
47,646 |
|
|
|
6,420 |
|
|
71,482 |
|
|
|
30,943 |
|
Net
interest income after provision for credit losses |
|
442,435 |
|
|
|
419,023 |
|
|
434,950 |
|
|
|
409,170 |
|
|
|
395,028 |
|
|
1,296,408 |
|
|
|
1,007,603 |
|
Non-interest income |
|
|
|
|
|
|
|
|
|
|
|
|
Wealth management |
|
33,529 |
|
|
|
33,858 |
|
|
29,945 |
|
|
|
30,727 |
|
|
|
33,124 |
|
|
97,332 |
|
|
|
95,887 |
|
Mortgage banking |
|
27,395 |
|
|
|
29,981 |
|
|
18,264 |
|
|
|
17,407 |
|
|
|
27,221 |
|
|
75,640 |
|
|
|
137,766 |
|
Service charges on deposit accounts |
|
14,217 |
|
|
|
13,608 |
|
|
12,903 |
|
|
|
13,054 |
|
|
|
14,349 |
|
|
40,728 |
|
|
|
45,520 |
|
Losses (gains) on investment securities, net |
|
(2,357 |
) |
|
|
0 |
|
|
1,398 |
|
|
|
(6,745 |
) |
|
|
(3,103 |
) |
|
(959 |
) |
|
|
(13,682 |
) |
Fees from covered call options |
|
4,215 |
|
|
|
2,578 |
|
|
10,391 |
|
|
|
7,956 |
|
|
|
1,366 |
|
|
17,184 |
|
|
|
6,177 |
|
Trading gains (losses), net |
|
728 |
|
|
|
106 |
|
|
813 |
|
|
|
(306 |
) |
|
|
(7 |
) |
|
1,647 |
|
|
|
4,058 |
|
Operating lease income, net |
|
13,863 |
|
|
|
12,227 |
|
|
13,046 |
|
|
|
12,384 |
|
|
|
12,644 |
|
|
39,136 |
|
|
|
43,126 |
|
Other |
|
20,888 |
|
|
|
20,672 |
|
|
21,009 |
|
|
|
19,362 |
|
|
|
15,888 |
|
|
62,569 |
|
|
|
48,362 |
|
Total non-interest income |
|
112,478 |
|
|
|
113,030 |
|
|
107,769 |
|
|
|
93,839 |
|
|
|
101,482 |
|
|
333,277 |
|
|
|
367,214 |
|
Non-interest expense |
|
|
|
|
|
|
|
|
|
|
|
|
Salaries and employee benefits |
|
192,338 |
|
|
|
184,923 |
|
|
176,781 |
|
|
|
180,331 |
|
|
|
176,095 |
|
|
554,042 |
|
|
|
515,776 |
|
Software and equipment |
|
25,951 |
|
|
|
26,205 |
|
|
24,697 |
|
|
|
24,699 |
|
|
|
24,126 |
|
|
76,853 |
|
|
|
71,186 |
|
Operating lease equipment |
|
12,020 |
|
|
|
9,816 |
|
|
9,833 |
|
|
|
10,078 |
|
|
|
9,448 |
|
|
31,669 |
|
|
|
27,930 |
|
Occupancy, net |
|
21,304 |
|
|
|
19,176 |
|
|
18,486 |
|
|
|
17,763 |
|
|
|
17,727 |
|
|
58,966 |
|
|
|
53,202 |
|
Data processing |
|
10,773 |
|
|
|
9,726 |
|
|
9,409 |
|
|
|
7,927 |
|
|
|
7,767 |
|
|
29,908 |
|
|
|
23,282 |
|
Advertising and marketing |
|
18,169 |
|
|
|
17,794 |
|
|
11,946 |
|
|
|
14,279 |
|
|
|
16,600 |
|
|
47,909 |
|
|
|
45,139 |
|
Professional fees |
|
8,887 |
|
|
|
8,940 |
|
|
8,163 |
|
|
|
9,267 |
|
|
|
7,544 |
|
|
25,990 |
|
|
|
23,821 |
|
Amortization of other acquisition-related intangible assets |
|
1,408 |
|
|
|
1,499 |
|
|
1,235 |
|
|
|
1,436 |
|
|
|
1,492 |
|
|
4,142 |
|
|
|
4,680 |
|
FDIC insurance |
|
9,748 |
|
|
|
9,008 |
|
|
8,669 |
|
|
|
6,775 |
|
|
|
7,186 |
|
|
27,425 |
|
|
|
21,864 |
|
OREO expenses, net |
|
120 |
|
|
|
118 |
|
|
(207 |
) |
|
|
369 |
|
|
|
229 |
|
|
31 |
|
|
|
(509 |
) |
Other |
|
29,337 |
|
|
|
33,418 |
|
|
30,157 |
|
|
|
34,912 |
|
|
|
28,255 |
|
|
92,912 |
|
|
|
83,064 |
|
Total non-interest expense |
|
330,055 |
|
|
|
320,623 |
|
|
299,169 |
|
|
|
307,836 |
|
|
|
296,469 |
|
|
949,847 |
|
|
|
869,435 |
|
Income
before taxes |
|
224,858 |
|
|
|
211,430 |
|
|
243,550 |
|
|
|
195,173 |
|
|
|
200,041 |
|
|
679,838 |
|
|
|
505,382 |
|
Income
tax expense |
|
60,660 |
|
|
|
56,680 |
|
|
63,352 |
|
|
|
50,356 |
|
|
|
57,080 |
|
|
180,692 |
|
|
|
140,517 |
|
Net income |
$ |
164,198 |
|
|
$ |
154,750 |
|
$ |
180,198 |
|
|
$ |
144,817 |
|
|
$ |
142,961 |
|
$ |
499,146 |
|
|
$ |
364,865 |
|
Preferred
stock dividends |
|
6,991 |
|
|
|
6,991 |
|
|
6,991 |
|
|
|
6,991 |
|
|
|
6,991 |
|
|
20,973 |
|
|
|
20,973 |
|
Net income applicable to common shares |
$ |
157,207 |
|
|
$ |
147,759 |
|
$ |
173,207 |
|
|
$ |
137,826 |
|
|
$ |
135,970 |
|
$ |
478,173 |
|
|
$ |
343,892 |
|
Net income per common share - Basic |
$ |
2.57 |
|
|
$ |
2.41 |
|
$ |
2.84 |
|
|
$ |
2.27 |
|
|
$ |
2.24 |
|
$ |
7.82 |
|
|
$ |
5.86 |
|
Net income per common share - Diluted |
$ |
2.53 |
|
|
$ |
2.38 |
|
$ |
2.80 |
|
|
$ |
2.23 |
|
|
$ |
2.21 |
|
$ |
7.71 |
|
|
$ |
5.78 |
|
Cash dividends declared per common share |
$ |
0.40 |
|
|
$ |
0.40 |
|
$ |
0.40 |
|
|
$ |
0.34 |
|
|
$ |
0.34 |
|
$ |
1.20 |
|
|
$ |
1.02 |
|
Weighted
average common shares outstanding |
|
61,213 |
|
|
|
61,192 |
|
|
60,950 |
|
|
|
60,769 |
|
|
|
60,738 |
|
|
61,119 |
|
|
|
58,679 |
|
Dilutive
potential common shares |
|
964 |
|
|
|
902 |
|
|
873 |
|
|
|
1,096 |
|
|
|
837 |
|
|
888 |
|
|
|
814 |
|
Average common shares and dilutive common shares |
|
62,177 |
|
|
|
62,094 |
|
|
61,823 |
|
|
|
61,865 |
|
|
|
61,575 |
|
|
62,007 |
|
|
|
59,493 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
TABLE 1: LOAN PORTFOLIO MIX AND
GROWTH RATES
|
|
|
|
|
|
|
|
|
|
% Growth From (1) |
(Dollars in thousands) |
Sep 30,
2023 |
|
Jun 30,
2023 |
|
Mar 31,
2023 |
|
Dec 31,
2022 |
|
Sep 30,
2022 |
Dec 31,
2022 (2) |
|
Sep 30,
2022 |
Balance: |
|
|
|
|
|
|
|
|
|
|
|
|
Mortgage loans held-for-sale, excluding early buy-out exercised
loans guaranteed by U.S. government agencies |
$ |
190,511 |
|
$ |
235,570 |
|
$ |
155,687 |
|
$ |
156,297 |
|
$ |
216,062 |
29 |
% |
|
(12 |
)% |
Mortgage loans held-for-sale, early buy-out exercised loans
guaranteed by U.S. government agencies |
|
114,297 |
|
|
103,158 |
|
|
146,806 |
|
|
143,638 |
|
|
160,098 |
(27 |
) |
|
(29 |
) |
Total mortgage loans held-for-sale |
$ |
304,808 |
|
$ |
338,728 |
|
$ |
302,493 |
|
$ |
299,935 |
|
$ |
376,160 |
1 |
% |
|
(19 |
)% |
|
|
|
|
|
|
|
|
|
|
|
|
|
Core loans: |
|
|
|
|
|
|
|
|
|
|
|
|
Commercial |
|
|
|
|
|
|
|
|
|
|
|
|
Commercial and industrial |
$ |
5,894,732 |
|
$ |
5,737,633 |
|
$ |
5,855,035 |
|
$ |
5,852,166 |
|
$ |
5,818,959 |
1 |
% |
|
1 |
% |
Asset-based lending |
|
1,396,591 |
|
|
1,465,848 |
|
|
1,482,071 |
|
|
1,473,344 |
|
|
1,545,038 |
(7 |
) |
|
(10 |
) |
Municipal |
|
676,915 |
|
|
653,117 |
|
|
655,301 |
|
|
668,235 |
|
|
608,234 |
2 |
|
|
11 |
|
Leases |
|
2,109,628 |
|
|
1,925,767 |
|
|
1,904,137 |
|
|
1,840,928 |
|
|
1,582,359 |
20 |
|
|
33 |
|
PPP loans |
|
13,744 |
|
|
15,337 |
|
|
17,195 |
|
|
28,923 |
|
|
43,658 |
(70 |
) |
|
(69 |
) |
Commercial real estate |
|
|
|
|
|
|
|
|
|
|
|
|
Residential construction |
|
51,550 |
|
|
51,689 |
|
|
69,998 |
|
|
76,877 |
|
|
66,957 |
(44 |
) |
|
(23 |
) |
Commercial construction |
|
1,547,322 |
|
|
1,409,751 |
|
|
1,234,762 |
|
|
1,102,098 |
|
|
1,176,407 |
54 |
|
|
32 |
|
Land |
|
294,901 |
|
|
298,996 |
|
|
292,293 |
|
|
307,955 |
|
|
282,147 |
(6 |
) |
|
5 |
|
Office |
|
1,422,748 |
|
|
1,404,422 |
|
|
1,392,040 |
|
|
1,337,176 |
|
|
1,269,729 |
9 |
|
|
12 |
|
Industrial |
|
2,057,957 |
|
|
2,002,740 |
|
|
1,858,088 |
|
|
1,836,276 |
|
|
1,777,658 |
16 |
|
|
16 |
|
Retail |
|
1,341,451 |
|
|
1,304,083 |
|
|
1,309,680 |
|
|
1,304,444 |
|
|
1,331,316 |
4 |
|
|
1 |
|
Multi-family |
|
2,710,829 |
|
|
2,696,478 |
|
|
2,635,411 |
|
|
2,560,709 |
|
|
2,305,433 |
8 |
|
|
18 |
|
Mixed use and other |
|
1,519,422 |
|
|
1,440,652 |
|
|
1,446,806 |
|
|
1,425,412 |
|
|
1,368,537 |
9 |
|
|
11 |
|
Home equity |
|
343,258 |
|
|
336,974 |
|
|
337,016 |
|
|
332,698 |
|
|
328,822 |
4 |
|
|
4 |
|
Residential real estate |
|
|
|
|
|
|
|
|
|
|
|
|
Residential real estate loans for investment |
|
2,538,630 |
|
|
2,455,392 |
|
|
2,309,393 |
|
|
2,207,595 |
|
|
2,086,795 |
20 |
|
|
22 |
|
Residential mortgage loans, early buy-out eligible loans guaranteed
by U.S. government agencies |
|
97,911 |
|
|
117,024 |
|
|
119,301 |
|
|
80,701 |
|
|
57,161 |
29 |
|
|
71 |
|
Residential mortgage loans, early buy-out exercised loans
guaranteed by U.S. government agencies |
|
71,062 |
|
|
70,824 |
|
|
76,851 |
|
|
84,087 |
|
|
91,503 |
(21 |
) |
|
(22 |
) |
Total core loans |
$ |
24,088,651 |
|
$ |
23,386,727 |
|
$ |
22,995,378 |
|
$ |
22,519,624 |
|
$ |
21,740,713 |
9 |
% |
|
11 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
Niche loans: |
|
|
|
|
|
|
|
|
|
|
|
|
Commercial |
|
|
|
|
|
|
|
|
|
|
|
|
Franchise |
$ |
1,074,162 |
|
$ |
1,091,164 |
|
$ |
1,131,913 |
|
$ |
1,169,623 |
|
$ |
1,118,478 |
(11 |
)% |
|
(4 |
)% |
Mortgage warehouse lines of credit |
|
245,450 |
|
|
381,043 |
|
|
235,684 |
|
|
237,392 |
|
|
297,374 |
5 |
|
|
(17 |
) |
Community Advantage - homeowners association |
|
424,054 |
|
|
405,042 |
|
|
389,922 |
|
|
380,875 |
|
|
365,967 |
15 |
|
|
16 |
|
Insurance agency lending |
|
890,197 |
|
|
925,520 |
|
|
905,727 |
|
|
897,678 |
|
|
879,183 |
(1 |
) |
|
1 |
|
Premium Finance receivables |
|
|
|
|
|
|
|
|
|
|
|
|
U.S. property & casualty insurance |
|
5,815,346 |
|
|
5,900,228 |
|
|
5,043,486 |
|
|
5,103,820 |
|
|
4,983,795 |
19 |
|
|
17 |
|
Canada property & casualty insurance |
|
907,401 |
|
|
862,470 |
|
|
695,394 |
|
|
745,639 |
|
|
729,545 |
29 |
|
|
24 |
|
Life insurance |
|
7,931,808 |
|
|
8,039,273 |
|
|
8,125,802 |
|
|
8,090,998 |
|
|
8,004,856 |
(3 |
) |
|
(1 |
) |
Consumer and other |
|
68,963 |
|
|
31,941 |
|
|
42,165 |
|
|
50,836 |
|
|
47,702 |
48 |
|
|
45 |
|
Total niche loans |
$ |
17,357,381 |
|
$ |
17,636,681 |
|
$ |
16,570,093 |
|
$ |
16,676,861 |
|
$ |
16,426,900 |
5 |
% |
|
6 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
Total loans, net of unearned income |
$ |
41,446,032 |
|
$ |
41,023,408 |
|
$ |
39,565,471 |
|
$ |
39,196,485 |
|
$ |
38,167,613 |
8 |
% |
|
9 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) NM - Not meaningful.
(2)
Annualized.
TABLE 2: DEPOSIT PORTFOLIO MIX AND GROWTH
RATES
|
|
|
|
|
|
|
|
|
|
% Growth From |
(Dollars in thousands) |
Sep 30,
2023 |
|
Jun 30,
2023 |
|
Mar 31,
2023 |
|
Dec 31,
2022 |
|
Sep 30,
2022 |
Jun 30,
2023 (1) |
|
Sep 30,
2022 |
Balance: |
|
|
|
|
|
|
|
|
|
|
|
|
Non-interest-bearing |
$ |
10,347,006 |
|
|
$ |
10,604,915 |
|
|
$ |
11,236,083 |
|
|
$ |
12,668,160 |
|
|
$ |
13,529,277 |
|
(10 |
)% |
|
(24 |
)% |
NOW and interest-bearing demand deposits |
|
6,006,114 |
|
|
|
5,814,836 |
|
|
|
5,576,558 |
|
|
|
5,591,986 |
|
|
|
5,676,122 |
|
13 |
|
|
6 |
|
Wealth management deposits (2) |
|
1,788,099 |
|
|
|
1,417,984 |
|
|
|
1,809,933 |
|
|
|
2,463,833 |
|
|
|
2,988,195 |
|
104 |
|
|
(40 |
) |
Money market |
|
14,478,504 |
|
|
|
14,523,124 |
|
|
|
13,552,277 |
|
|
|
12,886,795 |
|
|
|
12,538,489 |
|
(1 |
) |
|
15 |
|
Savings |
|
5,584,294 |
|
|
|
5,321,578 |
|
|
|
5,192,108 |
|
|
|
4,556,635 |
|
|
|
3,988,790 |
|
20 |
|
|
40 |
|
Time certificates of deposit |
|
6,788,669 |
|
|
|
6,356,270 |
|
|
|
5,351,252 |
|
|
|
4,735,135 |
|
|
|
4,076,318 |
|
27 |
|
|
67 |
|
Total deposits |
$ |
44,992,686 |
|
|
$ |
44,038,707 |
|
|
$ |
42,718,211 |
|
|
$ |
42,902,544 |
|
|
$ |
42,797,191 |
|
9 |
% |
|
5 |
% |
Mix: |
|
|
|
|
|
|
|
|
|
|
|
|
Non-interest-bearing |
|
23 |
% |
|
|
24 |
% |
|
|
26 |
% |
|
|
30 |
% |
|
|
32 |
% |
|
|
|
NOW and interest-bearing demand deposits |
|
13 |
|
|
|
13 |
|
|
|
13 |
|
|
|
13 |
|
|
|
13 |
|
|
|
|
Wealth management deposits (2) |
|
4 |
|
|
|
3 |
|
|
|
4 |
|
|
|
5 |
|
|
|
7 |
|
|
|
|
Money market |
|
32 |
|
|
|
33 |
|
|
|
32 |
|
|
|
30 |
|
|
|
29 |
|
|
|
|
Savings |
|
13 |
|
|
|
12 |
|
|
|
12 |
|
|
|
11 |
|
|
|
9 |
|
|
|
|
Time certificates of deposit |
|
15 |
|
|
|
15 |
|
|
|
13 |
|
|
|
11 |
|
|
|
10 |
|
|
|
|
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 September 30, 2023
(Dollars in thousands) |
|
Total Time
Certificates of
Deposit |
|
Weighted-Average
Rate of Maturing
Time Certificates
of Deposit |
1-3 months |
|
$ |
987,384 |
|
3.36 |
% |
4-6 months |
|
|
1,674,674 |
|
3.47 |
|
7-9 months |
|
|
1,984,259 |
|
4.51 |
|
10-12 months |
|
|
1,382,970 |
|
4.54 |
|
13-18 months |
|
|
566,457 |
|
3.28 |
|
19-24 months |
|
|
117,916 |
|
2.54 |
|
24+ months |
|
|
75,009 |
|
1.62 |
|
Total |
|
$ |
6,788,669 |
|
3.92 |
% |
|
|
|
|
|
|
|
TABLE 4: QUARTERLY AVERAGE
BALANCES
|
|
Average Balance for three months ended, |
|
|
Sep 30, |
|
Jun 30, |
|
Mar 31, |
|
Dec 31, |
|
Sep 30, |
(In thousands) |
|
|
2023 |
|
|
|
2023 |
|
|
|
2023 |
|
|
|
2022 |
|
|
|
2022 |
|
Interest-bearing deposits with banks, securities purchased under
resale agreements and cash equivalents (1) |
|
$ |
2,053,568 |
|
|
$ |
1,454,057 |
|
|
$ |
1,235,748 |
|
|
$ |
2,449,889 |
|
|
$ |
3,039,907 |
|
Investment securities (2) |
|
|
7,706,285 |
|
|
|
7,252,582 |
|
|
|
7,956,722 |
|
|
|
7,310,383 |
|
|
|
6,655,215 |
|
FHLB and
FRB stock |
|
|
201,252 |
|
|
|
223,813 |
|
|
|
233,615 |
|
|
|
185,290 |
|
|
|
142,304 |
|
Liquidity management assets (3) |
|
|
9,961,105 |
|
|
|
8,930,452 |
|
|
|
9,426,085 |
|
|
|
9,945,562 |
|
|
|
9,837,426 |
|
Other
earning assets (3)(4) |
|
|
17,879 |
|
|
|
17,401 |
|
|
|
18,445 |
|
|
|
18,585 |
|
|
|
21,805 |
|
Mortgage
loans held-for-sale |
|
|
319,099 |
|
|
|
307,683 |
|
|
|
270,966 |
|
|
|
308,639 |
|
|
|
455,342 |
|
Loans,
net of unearned income (3)(5) |
|
|
40,707,042 |
|
|
|
40,106,393 |
|
|
|
39,093,368 |
|
|
|
38,566,871 |
|
|
|
37,431,126 |
|
Total earning assets (3) |
|
|
51,005,125 |
|
|
|
49,361,929 |
|
|
|
48,808,864 |
|
|
|
48,839,657 |
|
|
|
47,745,699 |
|
Allowance
for loan and investment security losses |
|
|
(319,491 |
) |
|
|
(302,627 |
) |
|
|
(282,704 |
) |
|
|
(252,827 |
) |
|
|
(260,270 |
) |
Cash and
due from banks |
|
|
459,819 |
|
|
|
481,510 |
|
|
|
488,457 |
|
|
|
475,691 |
|
|
|
458,263 |
|
Other
assets |
|
|
3,236,528 |
|
|
|
3,061,141 |
|
|
|
3,060,701 |
|
|
|
3,025,097 |
|
|
|
2,779,002 |
|
Total assets |
|
$ |
54,381,981 |
|
|
$ |
52,601,953 |
|
|
$ |
52,075,318 |
|
|
$ |
52,087,618 |
|
|
$ |
50,722,694 |
|
|
|
|
|
|
|
|
|
|
|
|
NOW and
interest-bearing demand deposits |
|
$ |
5,815,155 |
|
|
$ |
5,540,597 |
|
|
$ |
5,271,740 |
|
|
$ |
5,598,291 |
|
|
$ |
5,789,368 |
|
Wealth
management deposits |
|
|
1,512,765 |
|
|
|
1,545,626 |
|
|
|
2,167,081 |
|
|
|
2,883,247 |
|
|
|
3,078,764 |
|
Money
market accounts |
|
|
14,155,446 |
|
|
|
13,735,924 |
|
|
|
12,533,468 |
|
|
|
12,319,842 |
|
|
|
12,037,412 |
|
Savings
accounts |
|
|
5,472,535 |
|
|
|
5,206,609 |
|
|
|
4,830,322 |
|
|
|
4,403,113 |
|
|
|
3,862,579 |
|
Time
deposits |
|
|
6,495,906 |
|
|
|
5,603,024 |
|
|
|
5,041,638 |
|
|
|
4,023,232 |
|
|
|
3,675,930 |
|
Interest-bearing deposits |
|
|
33,451,807 |
|
|
|
31,631,780 |
|
|
|
29,844,249 |
|
|
|
29,227,725 |
|
|
|
28,444,053 |
|
Federal
Home Loan Bank advances |
|
|
2,241,292 |
|
|
|
2,227,106 |
|
|
|
2,474,882 |
|
|
|
2,088,201 |
|
|
|
1,403,573 |
|
Other
borrowings |
|
|
657,454 |
|
|
|
625,757 |
|
|
|
602,937 |
|
|
|
480,553 |
|
|
|
478,909 |
|
Subordinated notes |
|
|
437,658 |
|
|
|
437,545 |
|
|
|
437,422 |
|
|
|
437,312 |
|
|
|
437,191 |
|
Junior
subordinated debentures |
|
|
253,566 |
|
|
|
253,566 |
|
|
|
253,566 |
|
|
|
253,566 |
|
|
|
253,566 |
|
Total interest-bearing liabilities |
|
|
37,041,777 |
|
|
|
35,175,754 |
|
|
|
33,613,056 |
|
|
|
32,487,357 |
|
|
|
31,017,292 |
|
Non-interest-bearing deposits |
|
|
10,612,009 |
|
|
|
10,908,022 |
|
|
|
12,171,631 |
|
|
|
13,404,036 |
|
|
|
13,731,219 |
|
Other
liabilities |
|
|
1,644,312 |
|
|
|
1,473,459 |
|
|
|
1,395,360 |
|
|
|
1,485,369 |
|
|
|
1,178,796 |
|
Equity |
|
|
5,083,883 |
|
|
|
5,044,718 |
|
|
|
4,895,271 |
|
|
|
4,710,856 |
|
|
|
4,795,387 |
|
Total liabilities and shareholders’ equity |
|
$ |
54,381,981 |
|
|
$ |
52,601,953 |
|
|
$ |
52,075,318 |
|
|
$ |
52,087,618 |
|
|
$ |
50,722,694 |
|
|
|
|
|
|
|
|
|
|
|
|
Net free funds/contribution (6) |
|
$ |
13,963,348 |
|
|
$ |
14,186,175 |
|
|
$ |
15,195,808 |
|
|
$ |
16,352,300 |
|
|
$ |
16,728,407 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(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, |
|
|
Sep 30, |
|
Jun 30, |
|
Mar 31, |
|
Dec 31, |
|
Sep 30, |
(In thousands) |
|
|
2023 |
|
|
|
2023 |
|
|
|
2023 |
|
|
|
2022 |
|
|
|
2022 |
|
Interest income: |
|
|
|
|
|
|
|
|
|
|
Interest-bearing deposits with banks, securities purchased under
resale agreements and cash equivalents |
|
$ |
28,022 |
|
|
$ |
16,882 |
|
|
$ |
13,538 |
|
|
$ |
21,612 |
|
|
$ |
17,466 |
|
Investment securities |
|
|
59,737 |
|
|
|
51,795 |
|
|
|
60,494 |
|
|
|
53,630 |
|
|
|
39,071 |
|
FHLB and
FRB stock |
|
|
3,896 |
|
|
|
3,544 |
|
|
|
3,680 |
|
|
|
2,918 |
|
|
|
2,109 |
|
Liquidity management assets (1) |
|
|
91,655 |
|
|
|
72,221 |
|
|
|
77,712 |
|
|
|
78,160 |
|
|
|
58,646 |
|
Other
earning assets (1) |
|
|
291 |
|
|
|
272 |
|
|
|
313 |
|
|
|
289 |
|
|
|
275 |
|
Mortgage
loans held-for-sale |
|
|
4,767 |
|
|
|
4,178 |
|
|
|
3,528 |
|
|
|
3,997 |
|
|
|
5,371 |
|
Loans,
net of unearned income (1) |
|
|
668,183 |
|
|
|
622,939 |
|
|
|
560,564 |
|
|
|
500,432 |
|
|
|
403,719 |
|
Total interest income |
|
$ |
764,896 |
|
|
$ |
699,610 |
|
|
$ |
642,117 |
|
|
$ |
582,878 |
|
|
$ |
468,011 |
|
|
|
|
|
|
|
|
|
|
|
|
Interest expense: |
|
|
|
|
|
|
|
|
|
|
NOW and
interest-bearing demand deposits |
|
$ |
36,001 |
|
|
$ |
29,178 |
|
|
$ |
18,772 |
|
|
$ |
14,982 |
|
|
$ |
8,041 |
|
Wealth
management deposits |
|
|
9,350 |
|
|
|
9,097 |
|
|
|
12,258 |
|
|
|
14,079 |
|
|
|
11,068 |
|
Money
market accounts |
|
|
124,742 |
|
|
|
106,630 |
|
|
|
68,276 |
|
|
|
45,468 |
|
|
|
18,916 |
|
Savings
accounts |
|
|
31,784 |
|
|
|
25,603 |
|
|
|
15,816 |
|
|
|
8,421 |
|
|
|
2,130 |
|
Time
deposits |
|
|
60,906 |
|
|
|
42,987 |
|
|
|
29,680 |
|
|
|
12,497 |
|
|
|
5,761 |
|
Interest-bearing deposits |
|
|
262,783 |
|
|
|
213,495 |
|
|
|
144,802 |
|
|
|
95,447 |
|
|
|
45,916 |
|
Federal
Home Loan Bank advances |
|
|
17,436 |
|
|
|
17,399 |
|
|
|
19,135 |
|
|
|
13,823 |
|
|
|
6,812 |
|
Other
borrowings |
|
|
9,384 |
|
|
|
8,485 |
|
|
|
7,854 |
|
|
|
5,313 |
|
|
|
4,008 |
|
Subordinated notes |
|
|
5,491 |
|
|
|
5,523 |
|
|
|
5,488 |
|
|
|
5,520 |
|
|
|
5,485 |
|
Junior
subordinated debentures |
|
|
4,948 |
|
|
|
4,737 |
|
|
|
4,416 |
|
|
|
3,826 |
|
|
|
2,809 |
|
Total interest expense |
|
$ |
300,042 |
|
|
$ |
249,639 |
|
|
$ |
181,695 |
|
|
$ |
123,929 |
|
|
$ |
65,030 |
|
|
|
|
|
|
|
|
|
|
|
|
Less: Fully taxable-equivalent adjustment |
|
|
(2,496 |
) |
|
|
(2,434 |
) |
|
|
(2,427 |
) |
|
|
(2,133 |
) |
|
|
(1,533 |
) |
Net
interest income (GAAP) (2) |
|
|
462,358 |
|
|
|
447,537 |
|
|
|
457,995 |
|
|
|
456,816 |
|
|
|
401,448 |
|
Fully
taxable-equivalent adjustment |
|
|
2,496 |
|
|
|
2,434 |
|
|
|
2,427 |
|
|
|
2,133 |
|
|
|
1,533 |
|
Net interest income, fully taxable-equivalent (non-GAAP)
(2) |
|
$ |
464,854 |
|
|
$ |
449,971 |
|
|
$ |
460,422 |
|
|
$ |
458,949 |
|
|
$ |
402,981 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(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, |
|
|
Sep 30,
2023 |
|
Jun 30,
2023 |
|
Mar 31,
2023 |
|
Dec 31,
2022 |
|
Sep 30,
2022 |
Yield earned on: |
|
|
|
|
|
|
|
|
|
|
Interest-bearing deposits with banks, securities purchased under
resale agreements and cash equivalents |
|
5.41 |
% |
|
4.66 |
% |
|
4.44 |
% |
|
3.50 |
% |
|
2.28 |
% |
Investment securities |
|
3.08 |
|
|
2.86 |
|
|
3.08 |
|
|
2.91 |
|
|
2.33 |
|
FHLB and
FRB stock |
|
7.68 |
|
|
6.35 |
|
|
6.39 |
|
|
6.25 |
|
|
5.88 |
|
Liquidity management assets |
|
3.65 |
|
|
3.24 |
|
|
3.34 |
|
|
3.12 |
|
|
2.37 |
|
Other
earning assets |
|
6.47 |
|
|
6.27 |
|
|
6.87 |
|
|
6.17 |
|
|
5.01 |
|
Mortgage
loans held-for-sale |
|
5.93 |
|
|
5.45 |
|
|
5.28 |
|
|
5.14 |
|
|
4.68 |
|
Loans,
net of unearned income |
|
6.51 |
|
|
6.23 |
|
|
5.82 |
|
|
5.15 |
|
|
4.28 |
|
Total earning assets |
|
5.95 |
% |
|
5.68 |
% |
|
5.34 |
% |
|
4.73 |
% |
|
3.89 |
% |
|
|
|
|
|
|
|
|
|
|
|
Rate paid on: |
|
|
|
|
|
|
|
|
|
|
NOW and
interest-bearing demand deposits |
|
2.46 |
% |
|
2.11 |
% |
|
1.44 |
% |
|
1.06 |
% |
|
0.55 |
% |
Wealth
management deposits |
|
2.45 |
|
|
2.36 |
|
|
2.29 |
|
|
1.94 |
|
|
1.43 |
|
Money
market accounts |
|
3.50 |
|
|
3.11 |
|
|
2.21 |
|
|
1.46 |
|
|
0.62 |
|
Savings
accounts |
|
2.30 |
|
|
1.97 |
|
|
1.33 |
|
|
0.76 |
|
|
0.22 |
|
Time
deposits |
|
3.72 |
|
|
3.08 |
|
|
2.39 |
|
|
1.23 |
|
|
0.62 |
|
Interest-bearing deposits |
|
3.12 |
|
|
2.71 |
|
|
1.97 |
|
|
1.30 |
|
|
0.64 |
|
Federal
Home Loan Bank advances |
|
3.09 |
|
|
3.13 |
|
|
3.14 |
|
|
2.63 |
|
|
1.93 |
|
Other
borrowings |
|
5.66 |
|
|
5.44 |
|
|
5.28 |
|
|
4.39 |
|
|
3.32 |
|
Subordinated notes |
|
4.98 |
|
|
5.06 |
|
|
5.02 |
|
|
5.05 |
|
|
5.02 |
|
Junior
subordinated debentures |
|
7.74 |
|
|
7.49 |
|
|
6.97 |
|
|
5.90 |
|
|
4.33 |
|
Total interest-bearing liabilities |
|
3.21 |
% |
|
2.85 |
% |
|
2.19 |
% |
|
1.51 |
% |
|
0.83 |
% |
|
|
|
|
|
|
|
|
|
|
|
Interest
rate spread (1)(2) |
|
2.74 |
% |
|
2.83 |
% |
|
3.15 |
% |
|
3.22 |
% |
|
3.06 |
% |
Less: Fully taxable-equivalent adjustment |
|
(0.02 |
) |
|
(0.02 |
) |
|
(0.02 |
) |
|
(0.02 |
) |
|
(0.01 |
) |
Net free
funds/contribution (3) |
|
0.88 |
|
|
0.83 |
|
|
0.68 |
|
|
0.51 |
|
|
0.29 |
|
Net
interest margin (GAAP) (2) |
|
3.60 |
% |
|
3.64 |
% |
|
3.81 |
% |
|
3.71 |
% |
|
3.34 |
% |
Fully
taxable-equivalent adjustment |
|
0.02 |
|
|
0.02 |
|
|
0.02 |
|
|
0.02 |
|
|
0.01 |
|
Net interest margin, fully taxable-equivalent (non-GAAP)
(2) |
|
3.62 |
% |
|
3.66 |
% |
|
3.83 |
% |
|
3.73 |
% |
|
3.35 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(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
for nine months ended, |
Interest
for nine months ended, |
Yield/Rate
for nine months ended, |
(Dollars in thousands) |
Sep 30,
2023 |
|
Sep 30,
2022 |
Sep 30,
2023 |
|
Sep 30,
2022 |
Sep 30,
2023 |
|
Sep 30,
2022 |
Interest-bearing deposits with banks, securities purchased under
resale agreements and cash equivalents (1) |
$ |
1,584,120 |
|
|
$ |
3,617,498 |
|
$ |
58,443 |
|
|
$ |
26,738 |
|
4.93 |
% |
|
0.99 |
% |
Investment securities (2) |
|
7,637,612 |
|
|
|
6,542,077 |
|
|
172,025 |
|
|
|
108,947 |
|
3.01 |
|
|
2.23 |
|
FHLB and FRB stock |
|
219,442 |
|
|
|
138,405 |
|
|
11,120 |
|
|
|
5,704 |
|
6.77 |
|
|
5.51 |
|
Liquidity management assets (3)(4) |
$ |
9,441,174 |
|
|
$ |
10,297,980 |
|
$ |
241,588 |
|
|
$ |
141,389 |
|
3.42 |
% |
|
1.84 |
% |
Other earning assets (3)(4)(5) |
|
17,906 |
|
|
|
23,673 |
|
|
876 |
|
|
|
666 |
|
6.54 |
|
|
3.76 |
|
Mortgage loans held-for-sale |
|
299,426 |
|
|
|
559,258 |
|
|
12,473 |
|
|
|
17,198 |
|
5.57 |
|
|
4.11 |
|
Loans, net of unearned income (3)(4)(6) |
|
39,974,840 |
|
|
|
36,050,185 |
|
|
1,851,686 |
|
|
|
1,010,913 |
|
6.19 |
|
|
3.75 |
|
Total earning assets (4) |
$ |
49,733,346 |
|
|
$ |
46,931,096 |
|
$ |
2,106,623 |
|
|
$ |
1,170,166 |
|
5.66 |
% |
|
3.33 |
% |
Allowance for loan and investment security losses |
|
(301,742 |
) |
|
|
(257,992 |
) |
|
|
|
|
|
|
Cash and due from banks |
|
476,490 |
|
|
|
472,127 |
|
|
|
|
|
|
|
Other assets |
|
3,120,105 |
|
|
|
2,718,562 |
|
|
|
|
|
|
|
Total assets |
$ |
53,028,199 |
|
|
$ |
49,863,793 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NOW and interest-bearing demand deposits |
$ |
5,544,488 |
|
|
$ |
5,273,115 |
|
$ |
83,949 |
|
|
$ |
12,584 |
|
2.02 |
% |
|
0.32 |
% |
Wealth management deposits |
|
1,739,427 |
|
|
|
2,808,709 |
|
|
30,705 |
|
|
|
15,671 |
|
2.36 |
|
|
0.75 |
|
Money market accounts |
|
13,480,887 |
|
|
|
12,232,024 |
|
|
299,649 |
|
|
|
35,123 |
|
2.97 |
|
|
0.38 |
|
Savings accounts |
|
5,172,174 |
|
|
|
3,883,092 |
|
|
73,203 |
|
|
|
2,813 |
|
1.89 |
|
|
0.10 |
|
Time deposits |
|
5,718,850 |
|
|
|
3,741,014 |
|
|
133,574 |
|
|
|
13,564 |
|
3.12 |
|
|
0.48 |
|
Interest-bearing deposits |
$ |
31,655,826 |
|
|
$ |
27,937,954 |
|
$ |
621,080 |
|
|
$ |
79,755 |
|
2.62 |
% |
|
0.38 |
% |
Federal Home Loan Bank advances |
|
2,313,571 |
|
|
|
1,281,273 |
|
|
53,970 |
|
|
|
16,506 |
|
3.12 |
|
|
1.72 |
|
Other borrowings |
|
628,915 |
|
|
|
487,595 |
|
|
25,723 |
|
|
|
8,981 |
|
5.47 |
|
|
2.46 |
|
Subordinated notes |
|
437,543 |
|
|
|
437,081 |
|
|
16,502 |
|
|
|
16,484 |
|
5.04 |
|
|
5.03 |
|
Junior subordinated debentures |
|
253,566 |
|
|
|
253,566 |
|
|
14,101 |
|
|
|
6,426 |
|
7.44 |
|
|
3.34 |
|
Total interest-bearing liabilities |
$ |
35,289,421 |
|
|
$ |
30,397,469 |
|
$ |
731,376 |
|
|
$ |
128,152 |
|
2.77 |
% |
|
0.56 |
% |
Non-interest-bearing deposits |
|
11,224,841 |
|
|
|
13,756,793 |
|
|
|
|
|
|
|
Other liabilities |
|
1,505,289 |
|
|
|
1,101,132 |
|
|
|
|
|
|
|
Equity |
|
5,008,648 |
|
|
|
4,608,399 |
|
|
|
|
|
|
|
Total liabilities and shareholders’ equity |
$ |
53,028,199 |
|
|
$ |
49,863,793 |
|
|
|
|
|
|
|
Interest rate spread (4)(7) |
|
|
|
|
|
|
2.89 |
% |
|
2.77 |
% |
Less: Fully taxable-equivalent adjustment |
|
|
|
|
(7,357 |
) |
|
|
(3,468 |
) |
(0.02 |
) |
|
(0.01 |
) |
Net free funds/contribution (8) |
$ |
14,443,925 |
|
|
$ |
16,533,627 |
|
|
|
|
0.81 |
|
|
0.20 |
|
Net interest income/margin (GAAP) (4) |
|
|
|
$ |
1,367,890 |
|
|
$ |
1,038,546 |
|
3.68 |
% |
|
2.96 |
% |
Fully taxable-equivalent adjustment |
|
|
|
|
7,357 |
|
|
|
3,468 |
|
0.02 |
|
|
0.01 |
|
Net interest income/margin, fully taxable-equivalent (non-GAAP)
(4) |
|
|
|
$ |
1,375,247 |
|
|
$ |
1,042,014 |
|
3.70 |
% |
|
2.97 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(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 |
Sep 30, 2023 |
|
3.3 |
% |
|
1.9 |
% |
|
(2.0 |
)% |
|
(5.2 |
)% |
Jun 30, 2023 |
|
5.7 |
|
|
2.9 |
|
|
(2.9 |
) |
|
(7.9 |
) |
Mar 31,
2023 |
|
4.2 |
|
|
2.4 |
|
|
(2.4 |
) |
|
(7.3 |
) |
Dec 31,
2022 |
|
7.2 |
|
|
3.8 |
|
|
(5.0 |
) |
|
(12.1 |
) |
Sep 30, 2022 |
|
12.9 |
|
|
7.1 |
|
|
(8.7 |
) |
|
(18.9 |
) |
Ramp Scenario |
+200 Basis
Points |
|
+100 Basis
Points |
|
-100 Basis
Points |
|
-200 Basis
Points |
Sep 30, 2023 |
1.7 |
% |
|
1.2 |
% |
|
(0.5 |
)% |
|
(2.4 |
)% |
Jun 30, 2023 |
2.9 |
|
|
1.8 |
|
|
(0.9 |
) |
|
(3.4 |
) |
Mar 31, 2023 |
3.0 |
|
|
1.7 |
|
|
(1.3 |
) |
|
(3.4 |
) |
Dec 31, 2022 |
5.6 |
|
|
3.0 |
|
|
(2.9 |
) |
|
(6.8 |
) |
Sep 30, 2022 |
6.5 |
|
|
3.6 |
|
|
(3.9 |
) |
|
(8.6 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
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 contractual maturity
period |
As of September 30, 2023 |
One year or
less |
|
From one to
five years |
|
From five to
fifteen years |
|
After fifteen
years |
|
Total |
(In
thousands) |
|
|
|
|
Commercial |
|
|
|
|
|
|
|
|
|
Fixed rate |
$ |
532,313 |
|
$ |
2,805,566 |
|
$ |
1,740,199 |
|
$ |
19,102 |
|
$ |
5,097,180 |
Variable rate |
|
7,626,902 |
|
|
1,391 |
|
|
— |
|
|
— |
|
|
7,628,293 |
Total commercial |
$ |
8,159,215 |
|
$ |
2,806,957 |
|
$ |
1,740,199 |
|
$ |
19,102 |
|
$ |
12,725,473 |
Commercial real estate |
|
|
|
|
|
|
|
|
|
Fixed rate |
|
637,462 |
|
|
2,891,879 |
|
|
546,918 |
|
|
48,296 |
|
|
4,124,555 |
Variable rate |
|
6,813,010 |
|
|
7,872 |
|
|
743 |
|
|
— |
|
|
6,821,625 |
Total commercial real estate |
$ |
7,450,472 |
|
$ |
2,899,751 |
|
$ |
547,661 |
|
$ |
48,296 |
|
$ |
10,946,180 |
Home
equity |
|
|
|
|
|
|
|
|
|
Fixed rate |
|
10,785 |
|
|
2,398 |
|
|
— |
|
|
29 |
|
|
13,212 |
Variable rate |
|
330,046 |
|
|
— |
|
|
— |
|
|
— |
|
|
330,046 |
Total home equity |
$ |
340,831 |
|
$ |
2,398 |
|
$ |
— |
|
$ |
29 |
|
$ |
343,258 |
Residential real estate |
|
|
|
|
|
|
|
|
|
Fixed rate |
|
16,676 |
|
|
3,817 |
|
|
30,733 |
|
|
1,063,669 |
|
|
1,114,895 |
Variable rate |
|
74,016 |
|
|
268,720 |
|
|
1,249,972 |
|
|
— |
|
|
1,592,708 |
Total residential real estate |
$ |
90,692 |
|
$ |
272,537 |
|
$ |
1,280,705 |
|
$ |
1,063,669 |
|
$ |
2,707,603 |
Premium
finance receivables - property & casualty |
|
|
|
|
|
|
|
|
|
Fixed rate |
|
6,612,136 |
|
|
110,611 |
|
|
— |
|
|
— |
|
|
6,722,747 |
Variable rate |
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
Total premium finance receivables - property & casualty |
$ |
6,612,136 |
|
$ |
110,611 |
|
$ |
— |
|
$ |
— |
|
$ |
6,722,747 |
Premium
finance receivables - life insurance |
|
|
|
|
|
|
|
|
|
Fixed rate |
|
137,889 |
|
|
594,399 |
|
|
3,978 |
|
|
— |
|
|
736,266 |
Variable rate |
|
7,195,542 |
|
|
— |
|
|
— |
|
|
— |
|
|
7,195,542 |
Total premium finance receivables - life insurance |
$ |
7,333,431 |
|
$ |
594,399 |
|
$ |
3,978 |
|
$ |
— |
|
$ |
7,931,808 |
Consumer
and other |
|
|
|
|
|
|
|
|
|
Fixed rate |
|
21,528 |
|
|
6,741 |
|
|
54 |
|
|
469 |
|
|
28,792 |
Variable rate |
|
40,171 |
|
|
— |
|
|
— |
|
|
— |
|
|
40,171 |
Total consumer and other |
$ |
61,699 |
|
$ |
6,741 |
|
$ |
54 |
|
$ |
469 |
|
$ |
68,963 |
|
|
|
|
|
|
|
|
|
|
Total per
category |
|
|
|
|
|
|
|
|
|
Fixed rate |
|
7,968,789 |
|
|
6,415,411 |
|
|
2,321,882 |
|
|
1,131,565 |
|
|
17,837,647 |
Variable rate |
|
22,079,687 |
|
|
277,983 |
|
|
1,250,715 |
|
|
— |
|
|
23,608,385 |
Total loans, net of unearned income |
$ |
30,048,476 |
|
$ |
6,693,394 |
|
$ |
3,572,597 |
|
$ |
1,131,565 |
|
$ |
41,446,032 |
|
|
|
|
|
|
|
|
|
|
Variable Rate Loan Pricing by Index: |
|
|
|
|
|
|
|
|
|
SOFR tenors |
|
|
|
|
|
|
|
|
$ |
12,798,760 |
One- year CMT |
|
|
|
|
|
|
|
|
|
5,998,547 |
Prime |
|
|
|
|
|
|
|
|
|
3,627,121 |
Ameribor tenors |
|
|
|
|
|
|
|
|
|
329,220 |
Twelve-month LIBOR |
|
|
|
|
|
|
|
|
|
38,888 |
Other U.S. Treasury tenors |
|
|
|
|
|
|
|
|
|
38,760 |
BSBY tenors |
|
|
|
|
|
|
|
|
|
36,145 |
Other |
|
|
|
|
|
|
|
|
|
740,944 |
Total variable rate |
|
|
|
|
|
|
|
|
$ |
23,608,385 |
|
|
|
|
|
|
|
|
|
|
|
SOFR - Secured Overnight Financing Rate.
CMT - Constant Maturity Treasury Rate.
Ameribor - American Interbank Offered Rate.
LIBOR - London Interbank Offered Rate.
BSBY - Bloomberg Short Term Bank Yield Index.
Graph available at the following link:
http://ml.globenewswire.com/Resource/Download/3703bae4-a3c7-4b2a-b82a-8dd479f16cf6
Source: Bloomberg
As noted in the table on the previous page, the
majority of the Company’s portfolio is tied to SOFR and CMT 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 $10.0 billion tied to one-month
SOFR and $6.0 billion tied to one-year CMT. The above chart
shows:
|
|
Basis Point (bp) Change in |
|
|
1-month
SOFR |
|
One- year
CMT |
|
Prime |
|
Third Quarter 2023 |
|
18 |
bps |
6 |
bps |
25 |
bps |
Second
Quarter 2023 |
|
34 |
|
76 |
|
25 |
|
First
Quarter 2023 |
|
44 |
|
-9 |
|
50 |
|
Fourth
Quarter 2022 |
|
132 |
|
68 |
|
125 |
|
Third Quarter 2022 |
|
135 |
|
125 |
|
150 |
|
|
|
|
|
|
|
|
|
TABLE 10: ALLOWANCE FOR CREDIT LOSSES
|
|
Three Months Ended |
Nine Months Ended |
|
|
Sep 30, |
|
Jun 30, |
|
Mar 31, |
|
Dec 31, |
|
Sep 30, |
Sep 30, |
|
Sep 30, |
(Dollars in thousands) |
|
|
2023 |
|
|
|
2023 |
|
|
|
2023 |
|
|
|
2022 |
|
|
|
2022 |
|
|
2023 |
|
|
|
2022 |
|
Allowance for credit losses at beginning of
period |
|
$ |
387,786 |
|
|
$ |
376,261 |
|
|
$ |
357,936 |
|
|
$ |
315,338 |
|
|
$ |
312,192 |
|
$ |
357,936 |
|
|
$ |
299,731 |
|
Cumulative effect adjustment from the adoption of ASU
2022-02 |
|
|
— |
|
|
|
— |
|
|
|
741 |
|
|
|
— |
|
|
|
— |
|
|
741 |
|
|
|
— |
|
Provision for credit losses |
|
|
19,923 |
|
|
|
28,514 |
|
|
|
23,045 |
|
|
|
47,646 |
|
|
|
6,420 |
|
|
71,482 |
|
|
|
30,943 |
|
Other adjustments |
|
|
(60 |
) |
|
|
41 |
|
|
|
4 |
|
|
|
31 |
|
|
|
(105 |
) |
|
(15 |
) |
|
|
(139 |
) |
Charge-offs: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial |
|
|
2,427 |
|
|
|
5,629 |
|
|
|
2,543 |
|
|
|
3,019 |
|
|
|
780 |
|
|
10,599 |
|
|
|
11,122 |
|
Commercial real estate |
|
|
1,713 |
|
|
|
8,124 |
|
|
|
5 |
|
|
|
538 |
|
|
|
24 |
|
|
9,842 |
|
|
|
841 |
|
Home equity |
|
|
227 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
43 |
|
|
227 |
|
|
|
432 |
|
Residential real estate |
|
|
78 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
5 |
|
|
78 |
|
|
|
471 |
|
Premium finance receivables - property & casualty |
|
|
5,830 |
|
|
|
4,519 |
|
|
|
4,629 |
|
|
|
3,629 |
|
|
|
6,037 |
|
|
14,978 |
|
|
|
10,611 |
|
Premium finance receivables - life insurance |
|
|
18 |
|
|
|
134 |
|
|
|
21 |
|
|
|
28 |
|
|
|
— |
|
|
173 |
|
|
|
7 |
|
Consumer and other |
|
|
184 |
|
|
|
110 |
|
|
|
153 |
|
|
|
— |
|
|
|
635 |
|
|
447 |
|
|
|
1,081 |
|
Total charge-offs |
|
|
10,477 |
|
|
|
18,516 |
|
|
|
7,351 |
|
|
|
7,214 |
|
|
|
7,524 |
|
|
36,344 |
|
|
|
24,565 |
|
Recoveries: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial |
|
|
1,162 |
|
|
|
505 |
|
|
|
392 |
|
|
|
691 |
|
|
|
2,523 |
|
|
2,059 |
|
|
|
4,057 |
|
Commercial real estate |
|
|
243 |
|
|
|
25 |
|
|
|
100 |
|
|
|
61 |
|
|
|
55 |
|
|
368 |
|
|
|
640 |
|
Home equity |
|
|
33 |
|
|
|
37 |
|
|
|
35 |
|
|
|
65 |
|
|
|
38 |
|
|
105 |
|
|
|
254 |
|
Residential real estate |
|
|
1 |
|
|
|
6 |
|
|
|
4 |
|
|
|
6 |
|
|
|
60 |
|
|
11 |
|
|
|
71 |
|
Premium finance receivables - property & casualty |
|
|
906 |
|
|
|
890 |
|
|
|
1,314 |
|
|
|
1,279 |
|
|
|
1,648 |
|
|
3,110 |
|
|
|
4,243 |
|
Premium finance receivables - life insurance |
|
|
— |
|
|
|
— |
|
|
|
9 |
|
|
|
— |
|
|
|
— |
|
|
9 |
|
|
|
— |
|
Consumer and other |
|
|
14 |
|
|
|
23 |
|
|
|
32 |
|
|
|
33 |
|
|
|
31 |
|
|
69 |
|
|
|
103 |
|
Total recoveries |
|
|
2,359 |
|
|
|
1,486 |
|
|
|
1,886 |
|
|
|
2,135 |
|
|
|
4,355 |
|
|
5,731 |
|
|
|
9,368 |
|
Net charge-offs |
|
|
(8,118 |
) |
|
|
(17,030 |
) |
|
|
(5,465 |
) |
|
|
(5,079 |
) |
|
|
(3,169 |
) |
|
(30,613 |
) |
|
|
(15,197 |
) |
Allowance for credit losses at period end |
|
$ |
399,531 |
|
|
$ |
387,786 |
|
|
$ |
376,261 |
|
|
$ |
357,936 |
|
|
$ |
315,338 |
|
$ |
399,531 |
|
|
$ |
315,338 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Annualized net charge-offs (recoveries) by category as a
percentage of its own respective
category’s average: |
|
|
|
Commercial |
|
|
0.04 |
% |
|
|
0.16 |
% |
|
|
0.07 |
% |
|
|
0.08 |
% |
|
(0.06 |
)% |
|
0.09 |
% |
|
|
0.08 |
% |
Commercial real estate |
|
|
0.05 |
|
|
|
0.31 |
|
|
|
0.00 |
|
|
|
0.02 |
|
|
|
0.00 |
|
|
0.12 |
|
|
|
0.00 |
|
Home equity |
|
|
0.23 |
|
|
|
(0.04 |
) |
|
|
(0.04 |
) |
|
|
(0.08 |
) |
|
|
0.01 |
|
|
0.05 |
|
|
|
0.07 |
|
Residential real estate |
|
|
0.01 |
|
|
|
0.00 |
|
|
|
0.00 |
|
|
|
0.00 |
|
|
|
(0.01 |
) |
|
0.00 |
|
|
|
0.03 |
|
Premium finance receivables - property & casualty |
|
|
0.29 |
|
|
|
0.24 |
|
|
|
0.23 |
|
|
|
0.16 |
|
|
|
0.30 |
|
|
0.26 |
|
|
|
0.16 |
|
Premium finance receivables - life insurance |
|
|
0.00 |
|
|
|
0.01 |
|
|
|
0.00 |
|
|
|
0.00 |
|
|
|
— |
|
|
0.00 |
|
|
|
0.00 |
|
Consumer and other |
|
|
0.65 |
|
|
|
0.45 |
|
|
|
0.74 |
|
|
|
(0.16 |
) |
|
|
4.02 |
|
|
0.60 |
|
|
|
2.19 |
|
Total loans, net of unearned income |
|
|
0.08 |
% |
|
|
0.17 |
% |
|
|
0.06 |
% |
|
|
0.05 |
% |
|
|
0.03 |
% |
|
0.10 |
|
|
|
0.06 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans at period end |
|
$ |
41,446,032 |
|
|
$ |
41,023,408 |
|
|
$ |
39,565,471 |
|
|
$ |
39,196,485 |
|
|
$ |
38,167,613 |
|
|
|
|
Allowance for loan losses as a percentage of loans at
period end |
|
|
0.76 |
% |
|
|
0.74 |
% |
|
|
0.73 |
% |
|
|
0.69 |
% |
|
|
0.64 |
% |
|
|
|
Allowance for loan and unfunded lending-related commitment
losses as a percentage of loans at period end |
|
|
0.96 |
|
|
|
0.94 |
|
|
|
0.95 |
|
|
|
0.91 |
|
|
|
0.83 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
TABLE 11: ALLOWANCE AND PROVISION
FOR CREDIT LOSSES BY COMPONENT
|
|
Three Months Ended |
Nine Months Ended |
|
|
Sep 30, |
|
Jun 30, |
|
Mar 31, |
|
Dec 31, |
|
Sep 30, |
Sep 30, |
|
Sep 30, |
(In thousands) |
|
|
2023 |
|
|
|
2023 |
|
|
|
2023 |
|
|
2022 |
|
|
2022 |
|
|
2023 |
|
|
2022 |
Provision for loan losses |
|
$ |
20,717 |
|
|
$ |
31,516 |
|
|
$ |
22,520 |
|
|
$ |
29,110 |
|
$ |
(2,385 |
) |
$ |
74,753 |
|
|
$ |
13,611 |
Provision for unfunded lending-related commitments losses |
|
|
(769 |
) |
|
|
(2,945 |
) |
|
|
550 |
|
|
|
18,358 |
|
|
8,578 |
|
|
(3,164 |
) |
|
|
17,100 |
Provision for held-to-maturity securities losses |
|
|
(25 |
) |
|
|
(57 |
) |
|
|
(25 |
) |
|
|
178 |
|
|
227 |
|
|
(107 |
) |
|
|
232 |
Provision for credit losses |
|
$ |
19,923 |
|
|
$ |
28,514 |
|
|
$ |
23,045 |
|
|
$ |
47,646 |
|
$ |
6,420 |
|
$ |
71,482 |
|
|
$ |
30,943 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Allowance for loan losses |
|
$ |
315,039 |
|
|
$ |
302,499 |
|
|
$ |
287,972 |
|
|
$ |
270,173 |
|
$ |
246,110 |
|
|
|
|
Allowance for unfunded lending-related commitments losses |
|
|
84,111 |
|
|
|
84,881 |
|
|
|
87,826 |
|
|
|
87,275 |
|
|
68,918 |
|
|
|
|
Allowance for loan losses and unfunded lending-related commitments
losses |
|
|
399,150 |
|
|
|
387,380 |
|
|
|
375,798 |
|
|
|
357,448 |
|
|
315,028 |
|
|
|
|
Allowance for held-to-maturity securities losses |
|
|
381 |
|
|
|
406 |
|
|
|
463 |
|
|
|
488 |
|
|
310 |
|
|
|
|
Allowance for credit losses |
|
$ |
399,531 |
|
|
$ |
387,786 |
|
|
$ |
376,261 |
|
|
$ |
357,936 |
|
$ |
315,338 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
TABLE 12:
ALLOWANCE BY LOAN PORTFOLIO
The table below summarizes the calculation of
allowance for loan losses and allowance for unfunded
lending-related commitments losses for the Company’s loan
portfolios as well as core and niche portfolios, as of
September 30, 2023, June 30, 2023 and March 31,
2023.
|
As of Sep 30, 2023 |
As of Jun 30, 2023 |
As of Mar 31, 2023 |
(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 |
$ |
12,725,473 |
|
$ |
151,488 |
|
1.19 |
% |
$ |
12,600,471 |
|
$ |
143,142 |
|
1.14 |
% |
$ |
12,576,985 |
|
$ |
149,501 |
|
1.19 |
% |
Commercial real estate: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Construction and development |
|
1,893,773 |
|
|
90,622 |
|
4.79 |
|
|
1,760,436 |
|
|
86,725 |
|
4.93 |
|
|
1,597,053 |
|
|
75,069 |
|
4.70 |
|
Non-construction |
|
9,052,407 |
|
|
125,096 |
|
1.38 |
|
|
8,848,375 |
|
|
128,971 |
|
1.46 |
|
|
8,642,025 |
|
|
119,711 |
|
1.39 |
|
Home
equity |
|
343,258 |
|
|
7,080 |
|
2.06 |
|
|
336,974 |
|
|
6,967 |
|
2.07 |
|
|
337,016 |
|
|
7,728 |
|
2.29 |
|
Residential real estate |
|
2,707,603 |
|
|
12,659 |
|
0.47 |
|
|
2,643,240 |
|
|
12,252 |
|
0.46 |
|
|
2,505,545 |
|
|
11,434 |
|
0.46 |
|
Premium finance receivables |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial insurance loans |
|
6,722,747 |
|
|
11,132 |
|
0.17 |
|
|
6,762,698 |
|
|
8,347 |
|
0.12 |
|
|
5,738,880 |
|
|
11,248 |
|
0.20 |
|
Life insurance loans |
|
7,931,808 |
|
|
688 |
|
0.01 |
|
|
8,039,273 |
|
|
699 |
|
0.01 |
|
|
8,125,802 |
|
|
707 |
|
0.01 |
|
Consumer
and other |
|
68,963 |
|
|
385 |
|
0.56 |
|
|
31,941 |
|
|
277 |
|
0.87 |
|
|
42,165 |
|
|
400 |
|
0.95 |
|
Total loans, net of unearned income |
$ |
41,446,032 |
|
$ |
399,150 |
|
0.96 |
% |
$ |
41,023,408 |
|
$ |
387,380 |
|
0.94 |
% |
$ |
39,565,471 |
|
$ |
375,798 |
|
0.95 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total core loans (1) |
$ |
24,088,651 |
|
$ |
363,873 |
|
1.51 |
% |
$ |
23,386,727 |
|
$ |
350,930 |
|
1.50 |
% |
$ |
22,995,378 |
|
$ |
334,910 |
|
1.46 |
% |
Total niche loans (1) |
|
17,357,381 |
|
|
35,277 |
|
0.20 |
|
|
17,636,681 |
|
|
36,450 |
|
0.21 |
|
|
16,570,093 |
|
|
40,888 |
|
0.25 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) See Table 1 for additional
detail on core and niche loans.
TABLE 13: LOAN
PORTFOLIO AGING
(In thousands) |
|
Sep 30, 2023 |
|
Jun 30, 2023 |
|
Mar 31, 2023 |
|
Dec 31, 2022 |
|
Sep 30, 2022 |
Loan Balances: |
|
|
|
|
|
|
|
|
|
|
Commercial |
|
|
|
|
|
|
|
|
|
|
Nonaccrual |
|
$ |
43,569 |
|
$ |
40,460 |
|
$ |
47,950 |
|
$ |
35,579 |
|
$ |
44,293 |
90+ days and still accruing |
|
|
200 |
|
|
573 |
|
|
— |
|
|
462 |
|
|
237 |
60-89 days past due |
|
|
22,889 |
|
|
22,808 |
|
|
10,755 |
|
|
21,128 |
|
|
24,641 |
30-59 days past due |
|
|
35,681 |
|
|
48,970 |
|
|
95,593 |
|
|
56,696 |
|
|
34,917 |
Current |
|
|
12,623,134 |
|
|
12,487,660 |
|
|
12,422,687 |
|
|
12,435,299 |
|
|
12,155,162 |
Total commercial |
|
$ |
12,725,473 |
|
$ |
12,600,471 |
|
$ |
12,576,985 |
|
$ |
12,549,164 |
|
$ |
12,259,250 |
Commercial real estate |
|
|
|
|
|
|
|
|
|
|
Nonaccrual |
|
$ |
17,043 |
|
$ |
18,483 |
|
$ |
11,196 |
|
$ |
6,387 |
|
$ |
10,477 |
90+ days and still accruing |
|
|
1,092 |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
60-89 days past due |
|
|
7,395 |
|
|
1,054 |
|
|
20,539 |
|
|
2,244 |
|
|
6,041 |
30-59 days past due |
|
|
60,984 |
|
|
14,218 |
|
|
72,680 |
|
|
30,675 |
|
|
29,971 |
Current |
|
|
10,859,666 |
|
|
10,575,056 |
|
|
10,134,663 |
|
|
9,911,641 |
|
|
9,531,695 |
Total commercial real estate |
|
$ |
10,946,180 |
|
$ |
10,608,811 |
|
$ |
10,239,078 |
|
$ |
9,950,947 |
|
$ |
9,578,184 |
Home equity |
|
|
|
|
|
|
|
|
|
|
Nonaccrual |
|
$ |
1,363 |
|
$ |
1,361 |
|
$ |
1,190 |
|
$ |
1,487 |
|
$ |
1,320 |
90+ days and still accruing |
|
|
— |
|
|
110 |
|
|
— |
|
|
— |
|
|
— |
60-89 days past due |
|
|
219 |
|
|
316 |
|
|
116 |
|
|
— |
|
|
125 |
30-59 days past due |
|
|
1,668 |
|
|
601 |
|
|
1,118 |
|
|
2,152 |
|
|
848 |
Current |
|
|
340,008 |
|
|
334,586 |
|
|
334,592 |
|
|
329,059 |
|
|
326,529 |
Total home equity |
|
$ |
343,258 |
|
$ |
336,974 |
|
$ |
337,016 |
|
$ |
332,698 |
|
$ |
328,822 |
Residential real estate |
|
|
|
|
|
|
|
|
|
|
Early buy-out loans guaranteed by U.S. government agencies
(1) |
|
$ |
168,973 |
|
$ |
187,848 |
|
$ |
196,152 |
|
$ |
164,788 |
|
$ |
148,664 |
Nonaccrual |
|
|
16,103 |
|
|
13,652 |
|
|
11,333 |
|
|
10,171 |
|
|
9,787 |
90+ days and still accruing |
|
|
— |
|
|
— |
|
|
104 |
|
|
— |
|
|
— |
60-89 days past due |
|
|
1,145 |
|
|
7,243 |
|
|
74 |
|
|
4,364 |
|
|
2,149 |
30-59 days past due |
|
|
904 |
|
|
872 |
|
|
19,183 |
|
|
9,982 |
|
|
15 |
Current |
|
|
2,520,478 |
|
|
2,433,625 |
|
|
2,278,699 |
|
|
2,183,078 |
|
|
2,074,844 |
Total residential real estate |
|
$ |
2,707,603 |
|
$ |
2,643,240 |
|
$ |
2,505,545 |
|
$ |
2,372,383 |
|
$ |
2,235,459 |
Premium finance receivables - property & casualty |
|
|
|
|
|
|
|
|
|
|
Nonaccrual |
|
$ |
26,756 |
|
$ |
19,583 |
|
$ |
18,543 |
|
$ |
13,470 |
|
$ |
13,026 |
90+ days and still accruing |
|
|
16,253 |
|
|
12,785 |
|
|
9,215 |
|
|
15,841 |
|
|
16,624 |
60-89 days past due |
|
|
16,552 |
|
|
22,670 |
|
|
14,287 |
|
|
14,926 |
|
|
15,301 |
30-59 days past due |
|
|
31,919 |
|
|
32,751 |
|
|
32,545 |
|
|
40,557 |
|
|
21,128 |
Current |
|
|
6,631,267 |
|
|
6,674,909 |
|
|
5,664,290 |
|
|
5,764,665 |
|
|
5,647,261 |
Total Premium finance receivables - property & casualty |
|
$ |
6,722,747 |
|
$ |
6,762,698 |
|
$ |
5,738,880 |
|
$ |
5,849,459 |
|
$ |
5,713,340 |
Premium finance receivables - life insurance |
|
|
|
|
|
|
|
|
|
|
Nonaccrual |
|
$ |
— |
|
$ |
6 |
|
$ |
— |
|
$ |
— |
|
$ |
— |
90+ days and still accruing |
|
|
10,679 |
|
|
1,667 |
|
|
1,066 |
|
|
17,245 |
|
|
1,831 |
60-89 days past due |
|
|
41,894 |
|
|
3,729 |
|
|
21,552 |
|
|
5,260 |
|
|
13,628 |
30-59 days past due |
|
|
14,972 |
|
|
90,117 |
|
|
52,975 |
|
|
68,725 |
|
|
44,954 |
Current |
|
|
7,864,263 |
|
|
7,943,754 |
|
|
8,050,209 |
|
|
7,999,768 |
|
|
7,944,443 |
Total Premium finance receivables - life insurance |
|
$ |
7,931,808 |
|
$ |
8,039,273 |
|
$ |
8,125,802 |
|
$ |
8,090,998 |
|
$ |
8,004,856 |
Consumer and other |
|
|
|
|
|
|
|
|
|
|
Nonaccrual |
|
$ |
16 |
|
$ |
4 |
|
$ |
6 |
|
$ |
6 |
|
$ |
7 |
90+ days and still accruing |
|
|
27 |
|
|
28 |
|
|
87 |
|
|
49 |
|
|
31 |
60-89 days past due |
|
|
196 |
|
|
51 |
|
|
10 |
|
|
18 |
|
|
26 |
30-59 days past due |
|
|
519 |
|
|
146 |
|
|
379 |
|
|
224 |
|
|
343 |
Current |
|
|
68,205 |
|
|
31,712 |
|
|
41,683 |
|
|
50,539 |
|
|
47,295 |
Total consumer and other |
|
$ |
68,963 |
|
$ |
31,941 |
|
$ |
42,165 |
|
$ |
50,836 |
|
$ |
47,702 |
Total loans, net of unearned income |
|
|
|
|
|
|
|
|
|
|
Early buy-out loans guaranteed by U.S. government agencies
(1) |
|
$ |
168,973 |
|
$ |
187,848 |
|
$ |
196,152 |
|
$ |
164,788 |
|
$ |
148,664 |
Nonaccrual |
|
|
104,850 |
|
|
93,549 |
|
|
90,218 |
|
|
67,100 |
|
|
78,910 |
90+ days and still accruing |
|
|
28,251 |
|
|
15,163 |
|
|
10,472 |
|
|
33,597 |
|
|
18,723 |
60-89 days past due |
|
|
90,290 |
|
|
57,871 |
|
|
67,333 |
|
|
47,940 |
|
|
61,911 |
30-59 days past due |
|
|
146,647 |
|
|
187,675 |
|
|
274,473 |
|
|
209,011 |
|
|
132,176 |
Current |
|
|
40,907,021 |
|
|
40,481,302 |
|
|
38,926,823 |
|
|
38,674,049 |
|
|
37,727,229 |
Total loans, net of unearned income |
|
$ |
41,446,032 |
|
$ |
41,023,408 |
|
$ |
39,565,471 |
|
$ |
39,196,485 |
|
$ |
38,167,613 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(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)
|
Sep 30, |
|
Jun 30, |
|
Mar 31, |
|
Dec 31, |
|
Sep 30, |
(Dollars in thousands) |
|
2023 |
|
|
|
2023 |
|
|
|
2023 |
|
|
|
2022 |
|
|
|
2022 |
|
Loans past due greater than 90 days and still
accruing: |
|
|
|
|
|
|
|
|
|
Commercial |
$ |
200 |
|
|
$ |
573 |
|
|
$ |
— |
|
|
$ |
462 |
|
|
$ |
237 |
|
Commercial real estate |
|
1,092 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Home
equity |
|
— |
|
|
|
110 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Residential real estate |
|
— |
|
|
|
— |
|
|
|
104 |
|
|
|
— |
|
|
|
— |
|
Premium
finance receivables - property & casualty |
|
16,253 |
|
|
|
12,785 |
|
|
|
9,215 |
|
|
|
15,841 |
|
|
|
16,624 |
|
Premium
finance receivables - life insurance |
|
10,679 |
|
|
|
1,667 |
|
|
|
1,066 |
|
|
|
17,245 |
|
|
|
1,831 |
|
Consumer
and other |
|
27 |
|
|
|
28 |
|
|
|
87 |
|
|
|
49 |
|
|
|
31 |
|
Total loans past due greater than 90 days and still accruing |
|
28,251 |
|
|
|
15,163 |
|
|
|
10,472 |
|
|
|
33,597 |
|
|
|
18,723 |
|
Non-accrual loans: |
|
|
|
|
|
|
|
|
|
Commercial |
|
43,569 |
|
|
|
40,460 |
|
|
|
47,950 |
|
|
|
35,579 |
|
|
|
44,293 |
|
Commercial real estate |
|
17,043 |
|
|
|
18,483 |
|
|
|
11,196 |
|
|
|
6,387 |
|
|
|
10,477 |
|
Home
equity |
|
1,363 |
|
|
|
1,361 |
|
|
|
1,190 |
|
|
|
1,487 |
|
|
|
1,320 |
|
Residential real estate |
|
16,103 |
|
|
|
13,652 |
|
|
|
11,333 |
|
|
|
10,171 |
|
|
|
9,787 |
|
Premium
finance receivables - property & casualty |
|
26,756 |
|
|
|
19,583 |
|
|
|
18,543 |
|
|
|
13,470 |
|
|
|
13,026 |
|
Premium
finance receivables - life insurance |
|
— |
|
|
|
6 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Consumer
and other |
|
16 |
|
|
|
4 |
|
|
|
6 |
|
|
|
6 |
|
|
|
7 |
|
Total non-accrual loans |
|
104,850 |
|
|
|
93,549 |
|
|
|
90,218 |
|
|
|
67,100 |
|
|
|
78,910 |
|
Total non-performing loans: |
|
|
|
|
|
|
|
|
|
Commercial |
|
43,769 |
|
|
|
41,033 |
|
|
|
47,950 |
|
|
|
36,041 |
|
|
|
44,530 |
|
Commercial real estate |
|
18,135 |
|
|
|
18,483 |
|
|
|
11,196 |
|
|
|
6,387 |
|
|
|
10,477 |
|
Home
equity |
|
1,363 |
|
|
|
1,471 |
|
|
|
1,190 |
|
|
|
1,487 |
|
|
|
1,320 |
|
Residential real estate |
|
16,103 |
|
|
|
13,652 |
|
|
|
11,437 |
|
|
|
10,171 |
|
|
|
9,787 |
|
Premium
finance receivables - property & casualty |
|
43,009 |
|
|
|
32,368 |
|
|
|
27,758 |
|
|
|
29,311 |
|
|
|
29,650 |
|
Premium
finance receivables - life insurance |
|
10,679 |
|
|
|
1,673 |
|
|
|
1,066 |
|
|
|
17,245 |
|
|
|
1,831 |
|
Consumer
and other |
|
43 |
|
|
|
32 |
|
|
|
93 |
|
|
|
55 |
|
|
|
38 |
|
Total non-performing loans |
$ |
133,101 |
|
|
$ |
108,712 |
|
|
$ |
100,690 |
|
|
$ |
100,697 |
|
|
$ |
97,633 |
|
Other
real estate owned |
|
12,928 |
|
|
|
10,275 |
|
|
|
8,050 |
|
|
|
8,589 |
|
|
|
5,376 |
|
Other
real estate owned - from acquisitions |
|
1,132 |
|
|
|
1,311 |
|
|
|
1,311 |
|
|
|
1,311 |
|
|
|
1,311 |
|
Other
repossessed assets |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Total non-performing assets |
$ |
147,161 |
|
|
$ |
120,298 |
|
|
$ |
110,051 |
|
|
$ |
110,597 |
|
|
$ |
104,320 |
|
Total non-performing loans by category as a percent of its
own respective category’s period-end balance: |
|
|
|
|
|
|
|
|
|
Commercial |
|
0.34 |
% |
|
|
0.33 |
% |
|
|
0.38 |
% |
|
|
0.29 |
% |
|
|
0.36 |
% |
Commercial real estate |
|
0.17 |
|
|
|
0.17 |
|
|
|
0.11 |
|
|
|
0.06 |
|
|
|
0.11 |
|
Home
equity |
|
0.40 |
|
|
|
0.44 |
|
|
|
0.35 |
|
|
|
0.45 |
|
|
|
0.40 |
|
Residential real estate |
|
0.59 |
|
|
|
0.52 |
|
|
|
0.46 |
|
|
|
0.43 |
|
|
|
0.44 |
|
Premium
finance receivables - property & casualty |
|
0.64 |
|
|
|
0.48 |
|
|
|
0.48 |
|
|
|
0.50 |
|
|
|
0.52 |
|
Premium
finance receivables - life insurance |
|
0.13 |
|
|
|
0.02 |
|
|
|
0.01 |
|
|
|
0.21 |
|
|
|
0.02 |
|
Consumer
and other |
|
0.06 |
|
|
|
0.10 |
|
|
|
0.22 |
|
|
|
0.11 |
|
|
|
0.08 |
|
Total loans, net of unearned income |
|
0.32 |
% |
|
|
0.26 |
% |
|
|
0.25 |
% |
|
|
0.26 |
% |
|
|
0.26 |
% |
Total non-performing assets as a percentage of total
assets |
|
0.26 |
% |
|
|
0.22 |
% |
|
|
0.21 |
% |
|
|
0.21 |
% |
|
|
0.20 |
% |
Allowance for loan losses and unfunded lending-related
commitments losses as a percentage of non-accrual
loans |
|
380.69 |
% |
|
|
414.09 |
% |
|
|
416.54 |
% |
|
|
532.71 |
% |
|
|
399.22 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(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.
Non-performing Loans Rollforward,
excluding early buy-out loans guaranteed by U.S. government
agencies
|
Three Months Ended |
Nine Months Ended |
|
Sep 30, |
|
Jun 30, |
|
Mar 31, |
|
Dec 31, |
|
Sep 30, |
Sep 30, |
|
Sep 30, |
(In thousands) |
|
2023 |
|
|
|
2023 |
|
|
|
2023 |
|
|
|
2022 |
|
|
|
2022 |
|
|
2023 |
|
|
|
2022 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance
at beginning of period |
$ |
108,712 |
|
|
$ |
100,690 |
|
|
$ |
100,697 |
|
|
$ |
97,633 |
|
|
$ |
72,351 |
|
$ |
100,697 |
|
|
$ |
74,438 |
|
Additions from becoming non-performing in the respective
period |
|
18,666 |
|
|
|
21,246 |
|
|
|
24,455 |
|
|
|
10,027 |
|
|
|
35,234 |
|
|
64,367 |
|
|
|
62,216 |
|
Return to performing status |
|
(1,702 |
) |
|
|
(360 |
) |
|
|
(480 |
) |
|
|
(1,167 |
) |
|
|
(154 |
) |
|
(2,542 |
) |
|
|
(1,883 |
) |
Payments received |
|
(6,488 |
) |
|
|
(12,314 |
) |
|
|
(5,261 |
) |
|
|
(16,351 |
) |
|
|
(20,417 |
) |
|
(24,063 |
) |
|
|
(44,585 |
) |
Transfer to OREO and other repossessed assets |
|
(2,671 |
) |
|
|
(2,958 |
) |
|
|
— |
|
|
|
(3,365 |
) |
|
|
(185 |
) |
|
(5,629 |
) |
|
|
(6,173 |
) |
Charge-offs, net |
|
(3,011 |
) |
|
|
(2,696 |
) |
|
|
(1,159 |
) |
|
|
(1,363 |
) |
|
|
(341 |
) |
|
(6,866 |
) |
|
|
(4,664 |
) |
Net change for niche loans (1) |
|
19,595 |
|
|
|
5,104 |
|
|
|
(17,562 |
) |
|
|
15,283 |
|
|
|
11,145 |
|
|
7,137 |
|
|
|
18,284 |
|
Balance at end of period |
$ |
133,101 |
|
|
$ |
108,712 |
|
|
$ |
100,690 |
|
|
$ |
100,697 |
|
|
$ |
97,633 |
|
$ |
133,101 |
|
|
$ |
97,633 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Includes activity for premium
finance receivables and indirect consumer loans.
Other Real Estate Owned
|
Three Months Ended |
|
Sep 30, |
|
Jun 30, |
|
Mar 31, |
|
Dec 31, |
|
Sep 30, |
(In thousands) |
|
2023 |
|
|
|
2023 |
|
|
|
2023 |
|
|
|
2022 |
|
|
|
2022 |
|
Balance at beginning of period |
$ |
11,586 |
|
|
$ |
9,361 |
|
|
$ |
9,900 |
|
|
$ |
6,687 |
|
|
$ |
6,839 |
|
Disposals/resolved |
|
(467 |
) |
|
|
(733 |
) |
|
|
(435 |
) |
|
|
(152 |
) |
|
|
(133 |
) |
Transfers in at fair value, less costs to sell |
|
2,941 |
|
|
|
2,958 |
|
|
|
— |
|
|
|
3,365 |
|
|
|
134 |
|
Fair value adjustments |
|
— |
|
|
|
— |
|
|
|
(104 |
) |
|
|
— |
|
|
|
(153 |
) |
Balance at end of period |
$ |
14,060 |
|
|
$ |
11,586 |
|
|
$ |
9,361 |
|
|
$ |
9,900 |
|
|
$ |
6,687 |
|
|
|
|
|
|
|
|
|
|
|
|
Period End |
|
Sep 30, |
|
Jun 30, |
|
Mar 31, |
|
Dec 31, |
|
Sep 30, |
Balance by Property Type: |
|
2023 |
|
|
|
2023 |
|
|
|
2023 |
|
|
|
2022 |
|
|
|
2022 |
|
Residential real estate |
$ |
441 |
|
|
$ |
318 |
|
|
$ |
1,051 |
|
|
$ |
1,585 |
|
|
$ |
1,585 |
|
Commercial real estate |
|
13,619 |
|
|
|
11,268 |
|
|
|
8,310 |
|
|
|
8,315 |
|
|
|
5,102 |
|
Total |
$ |
14,060 |
|
|
$ |
11,586 |
|
|
$ |
9,361 |
|
|
$ |
9,900 |
|
|
$ |
6,687 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
TABLE 15: NON-INTEREST
INCOME
|
Three Months Ended |
|
Q3 2023 compared to
Q2 2023 |
|
Q3 2023 compared to
Q3 2022 |
|
Sep 30, |
|
Jun 30, |
|
Mar 31, |
|
Dec 31, |
|
Sep 30, |
|
|
(Dollars in thousands) |
|
2023 |
|
|
2023 |
|
|
2023 |
|
|
|
2022 |
|
|
|
2022 |
|
|
$ Change |
|
% Change |
|
$ Change |
|
% Change |
Brokerage |
$ |
4,359 |
|
|
$ |
4,404 |
|
$ |
4,533 |
|
|
$ |
4,177 |
|
|
$ |
4,587 |
|
|
$ |
(45 |
) |
|
(1 |
)% |
|
$ |
(228 |
) |
|
(5 |
)% |
Trust and asset management |
|
29,170 |
|
|
|
29,454 |
|
|
25,412 |
|
|
|
26,550 |
|
|
|
28,537 |
|
|
|
(284 |
) |
|
(1 |
) |
|
|
633 |
|
|
2 |
|
Total wealth management |
|
33,529 |
|
|
|
33,858 |
|
|
29,945 |
|
|
|
30,727 |
|
|
|
33,124 |
|
|
|
(329 |
) |
|
(1 |
) |
|
|
405 |
|
|
1 |
|
Mortgage
banking |
|
27,395 |
|
|
|
29,981 |
|
|
18,264 |
|
|
|
17,407 |
|
|
|
27,221 |
|
|
|
(2,586 |
) |
|
(9 |
) |
|
|
174 |
|
|
1 |
|
Service
charges on deposit accounts |
|
14,217 |
|
|
|
13,608 |
|
|
12,903 |
|
|
|
13,054 |
|
|
|
14,349 |
|
|
|
609 |
|
|
4 |
|
|
|
(132 |
) |
|
(1 |
) |
(Losses)
gains on investment securities, net |
|
(2,357 |
) |
|
|
0 |
|
|
1,398 |
|
|
|
(6,745 |
) |
|
|
(3,103 |
) |
|
|
(2,357 |
) |
|
NM |
|
|
746 |
|
|
(24 |
) |
Fees from
covered call options |
|
4,215 |
|
|
|
2,578 |
|
|
10,391 |
|
|
|
7,956 |
|
|
|
1,366 |
|
|
|
1,637 |
|
|
63 |
|
|
|
2,849 |
|
|
NM |
Trading
gains (losses), net |
|
728 |
|
|
|
106 |
|
|
813 |
|
|
|
(306 |
) |
|
|
(7 |
) |
|
|
622 |
|
|
NM |
|
|
735 |
|
|
NM |
Operating
lease income, net |
|
13,863 |
|
|
|
12,227 |
|
|
13,046 |
|
|
|
12,384 |
|
|
|
12,644 |
|
|
|
1,636 |
|
|
13 |
|
|
|
1,219 |
|
|
10 |
|
Other: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest rate swap fees |
|
2,913 |
|
|
|
2,711 |
|
|
2,606 |
|
|
|
2,319 |
|
|
|
1,997 |
|
|
|
202 |
|
|
7 |
|
|
|
916 |
|
|
46 |
|
BOLI |
|
729 |
|
|
|
1,322 |
|
|
1,351 |
|
|
|
1,394 |
|
|
|
248 |
|
|
|
(593 |
) |
|
(45 |
) |
|
|
481 |
|
|
NM |
Administrative services |
|
1,336 |
|
|
|
1,319 |
|
|
1,615 |
|
|
|
1,736 |
|
|
|
1,533 |
|
|
|
17 |
|
|
1 |
|
|
|
(197 |
) |
|
(13 |
) |
Foreign currency remeasurement (losses) gains |
|
(446 |
) |
|
|
543 |
|
|
(188 |
) |
|
|
277 |
|
|
|
(93 |
) |
|
|
(989 |
) |
|
NM |
|
|
(353 |
) |
|
NM |
Early pay-offs of capital leases |
|
461 |
|
|
|
201 |
|
|
365 |
|
|
|
131 |
|
|
|
138 |
|
|
|
260 |
|
|
NM |
|
|
323 |
|
|
NM |
Miscellaneous |
|
15,895 |
|
|
|
14,576 |
|
|
15,260 |
|
|
|
13,505 |
|
|
|
12,065 |
|
|
|
1,319 |
|
|
9 |
|
|
|
3,830 |
|
|
32 |
|
Total Other |
|
20,888 |
|
|
|
20,672 |
|
|
21,009 |
|
|
|
19,362 |
|
|
|
15,888 |
|
|
|
216 |
|
|
1 |
|
|
|
5,000 |
|
|
31 |
|
Total Non-Interest Income |
$ |
112,478 |
|
|
$ |
113,030 |
|
$ |
107,769 |
|
|
$ |
93,839 |
|
|
$ |
101,482 |
|
|
$ |
(552 |
) |
|
0 |
% |
|
$ |
10,996 |
|
|
11 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nine Months Ended |
|
|
|
|
|
Sep 30, |
|
Sep 30, |
|
$ |
|
% |
(Dollars in thousands) |
|
2023 |
|
|
|
2022 |
|
|
Change |
|
Change |
Brokerage |
$ |
13,296 |
|
|
$ |
13,491 |
|
|
$ |
(195 |
) |
|
(1 |
)% |
Trust and asset management |
|
84,036 |
|
|
|
82,396 |
|
|
|
1,640 |
|
|
2 |
|
Total wealth management |
|
97,332 |
|
|
|
95,887 |
|
|
|
1,445 |
|
|
2 |
|
Mortgage banking |
|
75,640 |
|
|
|
137,766 |
|
|
|
(62,126 |
) |
|
(45 |
) |
Service charges on deposit accounts |
|
40,728 |
|
|
|
45,520 |
|
|
|
(4,792 |
) |
|
(11 |
) |
Gains (losses) on investment securities, net |
|
(959 |
) |
|
|
(13,682 |
) |
|
|
12,723 |
|
|
(93 |
) |
Fees from covered call options |
|
17,184 |
|
|
|
6,177 |
|
|
|
11,007 |
|
|
NM |
Trading gains, net |
|
1,647 |
|
|
|
4,058 |
|
|
|
(2,411 |
) |
|
(59 |
) |
Operating lease income, net |
|
39,136 |
|
|
|
43,126 |
|
|
|
(3,990 |
) |
|
(9 |
) |
Other: |
|
|
|
|
|
|
|
Interest rate swap fees |
|
8,230 |
|
|
|
9,866 |
|
|
|
(1,636 |
) |
|
(17 |
) |
BOLI |
|
3,402 |
|
|
|
(588 |
) |
|
|
3,990 |
|
|
NM |
Administrative services |
|
4,270 |
|
|
|
4,977 |
|
|
|
(707 |
) |
|
(14 |
) |
Foreign currency remeasurement gains |
|
(91 |
) |
|
|
15 |
|
|
|
(106 |
) |
|
NM |
Early pay-offs of leases |
|
1,027 |
|
|
|
563 |
|
|
|
464 |
|
|
82 |
|
Miscellaneous |
|
45,731 |
|
|
|
33,529 |
|
|
|
12,202 |
|
|
36 |
|
Total Other |
|
62,569 |
|
|
|
48,362 |
|
|
|
14,207 |
|
|
29 |
|
Total Non-Interest Income |
$ |
333,277 |
|
|
$ |
367,214 |
|
|
$ |
(33,937 |
) |
|
(9 |
)% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NM - Not meaningful.
BOLI - Bank-owned life insurance.
TABLE 16: NON-INTEREST
EXPENSE
|
Three Months Ended |
|
Q3 2023 compared to
Q2 2023 |
|
Q3 2023 compared to
Q3 2022 |
|
Sep 30, |
|
Jun 30, |
|
Mar 31, |
|
Dec 31, |
|
Sep 30, |
|
|
(Dollars in thousands) |
2023 |
|
2023 |
|
|
2023 |
|
|
2022 |
|
2022 |
|
$ Change |
|
% Change |
|
$ Change |
|
% Change |
Salaries
and employee benefits: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Salaries |
$ |
111,303 |
|
$ |
107,671 |
|
$ |
108,354 |
|
|
$ |
100,232 |
|
$ |
97,419 |
|
$ |
3,632 |
|
|
3 |
% |
|
$ |
13,884 |
|
|
14 |
% |
Commissions and incentive compensation |
|
48,817 |
|
|
44,511 |
|
|
39,799 |
|
|
|
49,546 |
|
|
50,403 |
|
|
4,306 |
|
|
10 |
|
|
|
(1,586 |
) |
|
(3 |
) |
Benefits |
|
32,218 |
|
|
32,741 |
|
|
28,628 |
|
|
|
30,553 |
|
|
28,273 |
|
|
(523 |
) |
|
(2 |
) |
|
|
3,945 |
|
|
14 |
|
Total salaries and employee benefits |
|
192,338 |
|
|
184,923 |
|
|
176,781 |
|
|
|
180,331 |
|
|
176,095 |
|
|
7,415 |
|
|
4 |
|
|
|
16,243 |
|
|
9 |
|
Software
and equipment |
|
25,951 |
|
|
26,205 |
|
|
24,697 |
|
|
|
24,699 |
|
|
24,126 |
|
|
(254 |
) |
|
(1 |
) |
|
|
1,825 |
|
|
8 |
|
Operating
lease equipment |
|
12,020 |
|
|
9,816 |
|
|
9,833 |
|
|
|
10,078 |
|
|
9,448 |
|
|
2,204 |
|
|
22 |
|
|
|
2,572 |
|
|
27 |
|
Occupancy, net |
|
21,304 |
|
|
19,176 |
|
|
18,486 |
|
|
|
17,763 |
|
|
17,727 |
|
|
2,128 |
|
|
11 |
|
|
|
3,577 |
|
|
20 |
|
Data
processing |
|
10,773 |
|
|
9,726 |
|
|
9,409 |
|
|
|
7,927 |
|
|
7,767 |
|
|
1,047 |
|
|
11 |
|
|
|
3,006 |
|
|
39 |
|
Advertising and marketing |
|
18,169 |
|
|
17,794 |
|
|
11,946 |
|
|
|
14,279 |
|
|
16,600 |
|
|
375 |
|
|
2 |
|
|
|
1,569 |
|
|
9 |
|
Professional fees |
|
8,887 |
|
|
8,940 |
|
|
8,163 |
|
|
|
9,267 |
|
|
7,544 |
|
|
(53 |
) |
|
(1 |
) |
|
|
1,343 |
|
|
18 |
|
Amortization of other acquisition-related intangible assets |
|
1,408 |
|
|
1,499 |
|
|
1,235 |
|
|
|
1,436 |
|
|
1,492 |
|
|
(91 |
) |
|
(6 |
) |
|
|
(84 |
) |
|
(6 |
) |
FDIC
insurance |
|
9,748 |
|
|
9,008 |
|
|
8,669 |
|
|
|
6,775 |
|
|
7,186 |
|
|
740 |
|
|
8 |
|
|
|
2,562 |
|
|
36 |
|
OREO
expense, net |
|
120 |
|
|
118 |
|
|
(207 |
) |
|
|
369 |
|
|
229 |
|
|
2 |
|
|
2 |
|
|
|
(109 |
) |
|
(48 |
) |
Other: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Lending expenses, net of deferred origination costs |
|
4,777 |
|
|
7,890 |
|
|
3,099 |
|
|
|
4,952 |
|
|
4,533 |
|
|
(3,113 |
) |
|
(39 |
) |
|
|
244 |
|
|
5 |
|
Travel and entertainment |
|
5,449 |
|
|
5,401 |
|
|
4,590 |
|
|
|
5,681 |
|
|
4,252 |
|
|
48 |
|
|
1 |
|
|
|
1,197 |
|
|
28 |
|
Miscellaneous |
|
19,111 |
|
|
20,127 |
|
|
22,468 |
|
|
|
24,279 |
|
|
19,470 |
|
|
(1,016 |
) |
|
(5 |
) |
|
|
(359 |
) |
|
(2 |
) |
Total other |
|
29,337 |
|
|
33,418 |
|
|
30,157 |
|
|
|
34,912 |
|
|
28,255 |
|
|
(4,081 |
) |
|
(12 |
) |
|
|
1,082 |
|
|
4 |
|
Total Non-Interest Expense |
$ |
330,055 |
|
$ |
320,623 |
|
$ |
299,169 |
|
|
$ |
307,836 |
|
$ |
296,469 |
|
$ |
9,432 |
|
|
3 |
% |
|
$ |
33,586 |
|
|
11 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nine Months Ended |
|
|
|
|
|
Sep 30, |
|
Sep 30, |
$ |
|
% |
(Dollars in thousands) |
|
|
2023 |
|
|
2022 |
|
Change |
|
Change |
Salaries and employee benefits: |
|
|
|
|
|
|
|
Salaries |
|
$ |
327,328 |
|
$ |
281,949 |
|
$ |
45,379 |
|
|
16 |
% |
Commissions and incentive compensation |
|
|
133,127 |
|
|
148,327 |
|
|
(15,200 |
) |
|
(10 |
) |
Benefits |
|
|
93,587 |
|
|
85,500 |
|
|
8,087 |
|
|
9 |
|
Total salaries and employee benefits |
|
|
554,042 |
|
|
515,776 |
|
|
38,266 |
|
|
7 |
|
Software and equipment |
|
|
76,853 |
|
|
71,186 |
|
|
5,667 |
|
|
8 |
|
Operating lease equipment |
|
|
31,669 |
|
|
27,930 |
|
|
3,739 |
|
|
13 |
|
Occupancy, net |
|
|
58,966 |
|
|
53,202 |
|
|
5,764 |
|
|
11 |
|
Data processing |
|
|
29,908 |
|
|
23,282 |
|
|
6,626 |
|
|
28 |
|
Advertising and marketing |
|
|
47,909 |
|
|
45,139 |
|
|
2,770 |
|
|
6 |
|
Professional fees |
|
|
25,990 |
|
|
23,821 |
|
|
2,169 |
|
|
9 |
|
Amortization of other acquisition-related intangible assets |
|
|
4,142 |
|
|
4,680 |
|
|
(538 |
) |
|
(11 |
) |
FDIC insurance |
|
|
27,425 |
|
|
21,864 |
|
|
5,561 |
|
|
25 |
|
OREO expense, net |
|
|
31 |
|
|
(509 |
) |
|
540 |
|
|
NM |
Other: |
|
|
|
|
|
|
|
Lending expenses, net of deferred origination costs |
|
|
15,766 |
|
|
15,624 |
|
|
142 |
|
|
1 |
|
Travel and entertainment |
|
|
15,440 |
|
|
10,825 |
|
|
4,615 |
|
|
43 |
|
Miscellaneous |
|
|
61,706 |
|
|
56,615 |
|
|
5,091 |
|
|
9 |
|
Total other |
|
|
92,912 |
|
|
83,064 |
|
|
9,848 |
|
|
12 |
|
Total Non-Interest Expense |
|
$ |
949,847 |
|
$ |
869,435 |
|
$ |
80,412 |
|
|
9 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NM - Not meaningful.
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, and pre-tax income, excluding
provision for credit losses. Management believes that these
measures and ratios provide users of the Company’s financial
information a more meaningful view of the performance of the
Company’s interest-earning assets and interest-bearing liabilities
and of the Company’s operating efficiency. Other financial holding
companies may define or calculate these measures and ratios
differently.
Management reviews yields on certain asset
categories and the net interest margin of the Company and its
banking subsidiaries on a fully taxable-equivalent basis. In this
non-GAAP presentation, net interest income is adjusted to reflect
tax-exempt interest income on an equivalent before-tax basis using
tax rates effective as of the end of the period. This measure
ensures comparability of net interest income arising from both
taxable and tax-exempt sources. Net interest income on a fully
taxable-equivalent basis is also used in the calculation of the
Company’s efficiency ratio. The efficiency ratio, which is
calculated by dividing non-interest expense by total
taxable-equivalent net revenue (less securities gains or losses),
measures how much it costs to produce one dollar of revenue.
Securities gains or losses are excluded from this calculation to
better match revenue from daily operations to operational expenses.
Management considers the tangible common equity ratio and tangible
book value per common share as useful measurements of the Company’s
equity. The Company references the return on average tangible
common equity as a measurement of profitability. Management
considers pre-tax income, excluding provision for credit losses, as
a useful measurement of the Company’s core net income.
|
Three Months Ended |
Nine Months Ended |
|
Sep 30, |
|
Jun 30, |
|
Mar 31, |
|
Dec 31, |
|
Sep 30, |
Sep 30, |
|
Sep 30, |
(Dollars and shares in thousands) |
|
2023 |
|
|
|
2023 |
|
|
|
2023 |
|
|
|
2022 |
|
|
|
2022 |
|
|
2023 |
|
|
|
2022 |
|
Reconciliation of Non-GAAP Net Interest Margin and
Efficiency Ratio: |
|
|
|
(A) Interest Income (GAAP) |
$ |
762,400 |
|
|
$ |
697,176 |
|
|
$ |
639,690 |
|
|
$ |
580,745 |
|
|
$ |
466,478 |
|
$ |
2,099,266 |
|
|
$ |
1,166,698 |
|
Taxable-equivalent adjustment: |
|
|
|
|
|
|
|
|
|
|
|
|
- Loans |
|
1,923 |
|
|
|
1,882 |
|
|
|
1,872 |
|
|
|
1,594 |
|
|
|
1,030 |
|
|
5,677 |
|
|
|
2,025 |
|
- Liquidity Management Assets |
|
572 |
|
|
|
551 |
|
|
|
551 |
|
|
|
538 |
|
|
|
502 |
|
|
1,674 |
|
|
|
1,439 |
|
- Other Earning Assets |
|
1 |
|
|
|
1 |
|
|
|
4 |
|
|
|
1 |
|
|
|
1 |
|
|
6 |
|
|
|
4 |
|
(B) Interest Income (non-GAAP) |
$ |
764,896 |
|
|
$ |
699,610 |
|
|
$ |
642,117 |
|
|
$ |
582,878 |
|
|
$ |
468,011 |
|
$ |
2,106,623 |
|
|
$ |
1,170,166 |
|
(C) Interest Expense (GAAP) |
|
300,042 |
|
|
|
249,639 |
|
|
|
181,695 |
|
|
|
123,929 |
|
|
|
65,030 |
|
|
731,376 |
|
|
|
128,152 |
|
(D) Net Interest Income (GAAP) (A minus C) |
$ |
462,358 |
|
|
$ |
447,537 |
|
|
$ |
457,995 |
|
|
$ |
456,816 |
|
|
$ |
401,448 |
|
$ |
1,367,890 |
|
|
$ |
1,038,546 |
|
(E) Net Interest Income (non-GAAP) (B minus
C) |
$ |
464,854 |
|
|
$ |
449,971 |
|
|
$ |
460,422 |
|
|
$ |
458,949 |
|
|
$ |
402,981 |
|
$ |
1,375,247 |
|
|
$ |
1,042,014 |
|
Net interest margin (GAAP) |
|
3.60 |
% |
|
|
3.64 |
% |
|
|
3.81 |
% |
|
|
3.71 |
% |
|
|
3.34 |
% |
|
3.68 |
% |
|
|
2.96 |
% |
Net interest margin, fully taxable-equivalent
(non-GAAP) |
|
3.62 |
|
|
|
3.66 |
|
|
|
3.83 |
|
|
|
3.73 |
|
|
|
3.35 |
|
|
3.70 |
|
|
|
2.97 |
|
(F) Non-interest income |
$ |
112,478 |
|
|
$ |
113,030 |
|
|
$ |
107,769 |
|
|
$ |
93,839 |
|
|
$ |
101,482 |
|
$ |
333,277 |
|
|
$ |
367,214 |
|
(G) (Losses) gains on investment securities, net |
|
(2,357 |
) |
|
|
0 |
|
|
|
1,398 |
|
|
|
(6,745 |
) |
|
|
(3,103 |
) |
|
(959 |
) |
|
|
(13,682 |
) |
(H) Non-interest expense |
|
330,055 |
|
|
|
320,623 |
|
|
|
299,169 |
|
|
|
307,836 |
|
|
|
296,469 |
|
|
949,847 |
|
|
|
869,435 |
|
Efficiency ratio (H/(D+F-G)) |
|
57.18 |
% |
|
|
57.20 |
% |
|
|
53.01 |
% |
|
|
55.23 |
% |
|
|
58.59 |
% |
|
55.80 |
% |
|
|
61.25 |
% |
Efficiency ratio (non-GAAP) (H/(E+F-G)) |
|
56.94 |
|
|
|
56.95 |
|
|
|
52.78 |
|
|
|
55.02 |
|
|
|
58.41 |
|
|
55.56 |
|
|
|
61.10 |
|
|
Three Months Ended |
Nine Months Ended |
|
Sep 30, |
|
Jun 30, |
|
Mar 31, |
|
Dec 31, |
|
Sep 30, |
Sep 30, |
|
Sep 30, |
(Dollars and shares in thousands) |
|
2023 |
|
|
|
2023 |
|
|
|
2023 |
|
|
|
2022 |
|
|
|
2022 |
|
|
2023 |
|
|
|
2022 |
|
Reconciliation of Non-GAAP Tangible Common Equity
Ratio: |
|
|
|
Total shareholders’ equity (GAAP) |
$ |
5,015,613 |
|
|
$ |
5,041,912 |
|
|
$ |
5,015,506 |
|
|
$ |
4,796,838 |
|
|
$ |
4,637,980 |
|
|
|
|
Less: Non-convertible preferred stock (GAAP) |
|
(412,500 |
) |
|
|
(412,500 |
) |
|
|
(412,500 |
) |
|
|
(412,500 |
) |
|
|
(412,500 |
) |
|
|
|
Less: Intangible assets (GAAP) |
|
(680,353 |
) |
|
|
(682,327 |
) |
|
|
(674,538 |
) |
|
|
(675,710 |
) |
|
|
(676,699 |
) |
|
|
|
(I) Total tangible common shareholders’ equity (non-GAAP) |
$ |
3,922,760 |
|
|
$ |
3,947,085 |
|
|
$ |
3,928,468 |
|
|
$ |
3,708,628 |
|
|
$ |
3,548,781 |
|
|
|
|
(J) Total assets (GAAP) |
$ |
55,555,246 |
|
|
$ |
54,286,176 |
|
|
$ |
52,873,511 |
|
|
$ |
52,949,649 |
|
|
$ |
52,382,939 |
|
|
|
|
Less: Intangible assets (GAAP) |
|
(680,353 |
) |
|
|
(682,327 |
) |
|
|
(674,538 |
) |
|
|
(675,710 |
) |
|
|
(676,699 |
) |
|
|
|
(K) Total tangible assets (non-GAAP) |
$ |
54,874,893 |
|
|
$ |
53,603,849 |
|
|
$ |
52,198,973 |
|
|
$ |
52,273,939 |
|
|
$ |
51,706,240 |
|
|
|
|
Common equity to assets ratio (GAAP) (L/J) |
|
8.3 |
% |
|
|
8.5 |
% |
|
|
8.7 |
% |
|
|
8.3 |
% |
|
|
8.1 |
% |
|
|
|
Tangible common equity ratio (non-GAAP) (I/K) |
|
7.1 |
|
|
|
7.4 |
|
|
|
7.5 |
|
|
|
7.1 |
|
|
|
6.9 |
|
|
|
|
Reconciliation of Non-GAAP Tangible Book Value per Common
Share: |
|
|
|
Total
shareholders’ equity |
$ |
5,015,613 |
|
|
$ |
5,041,912 |
|
|
$ |
5,015,506 |
|
|
$ |
4,796,838 |
|
|
$ |
4,637,980 |
|
|
|
|
Less:
Preferred stock |
|
(412,500 |
) |
|
|
(412,500 |
) |
|
|
(412,500 |
) |
|
|
(412,500 |
) |
|
|
(412,500 |
) |
|
|
|
(L) Total common equity |
$ |
4,603,113 |
|
|
$ |
4,629,412 |
|
|
$ |
4,603,006 |
|
|
$ |
4,384,338 |
|
|
$ |
4,225,480 |
|
|
|
|
(M)
Actual common shares outstanding |
|
61,222 |
|
|
|
61,198 |
|
|
|
61,176 |
|
|
|
60,794 |
|
|
|
60,743 |
|
|
|
|
Book value per common share (L/M) |
$ |
75.19 |
|
|
$ |
75.65 |
|
|
$ |
75.24 |
|
|
$ |
72.12 |
|
|
$ |
69.56 |
|
|
|
|
Tangible book value per common share (non-GAAP)
(I/M) |
|
64.07 |
|
|
|
64.50 |
|
|
|
64.22 |
|
|
|
61.00 |
|
|
|
58.42 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of Non-GAAP Return on Average Tangible
Common Equity: |
|
|
|
(N) Net income applicable to common shares |
$ |
157,207 |
|
|
$ |
147,759 |
|
|
$ |
173,207 |
|
|
$ |
137,826 |
|
|
$ |
135,970 |
|
$ |
478,173 |
|
|
$ |
343,892 |
|
Add:
Intangible asset amortization |
|
1,408 |
|
|
|
1,499 |
|
|
|
1,235 |
|
|
|
1,436 |
|
|
|
1,492 |
|
|
4,142 |
|
|
|
4,680 |
|
Less: Tax
effect of intangible asset amortization |
|
(380 |
) |
|
|
(402 |
) |
|
|
(321 |
) |
|
|
(370 |
) |
|
|
(425 |
) |
|
(1,102 |
) |
|
|
(1,301 |
) |
After-tax intangible asset amortization |
$ |
1,028 |
|
|
$ |
1,097 |
|
|
$ |
914 |
|
|
$ |
1,066 |
|
|
$ |
1,067 |
|
$ |
3,040 |
|
|
$ |
3,379 |
|
(O) Tangible net income applicable to common shares (non-GAAP) |
$ |
158,235 |
|
|
$ |
148,856 |
|
|
$ |
174,121 |
|
|
$ |
138,892 |
|
|
$ |
137,037 |
|
$ |
481,213 |
|
|
$ |
347,271 |
|
Total
average shareholders’ equity |
$ |
5,083,883 |
|
|
$ |
5,044,718 |
|
|
$ |
4,895,271 |
|
|
$ |
4,710,856 |
|
|
$ |
4,795,387 |
|
$ |
5,008,648 |
|
|
$ |
4,608,399 |
|
Less:
Average preferred stock |
|
(412,500 |
) |
|
|
(412,500 |
) |
|
|
(412,500 |
) |
|
|
(412,500 |
) |
|
|
(412,500 |
) |
|
(412,500 |
) |
|
|
(412,500 |
) |
(P) Total average common shareholders’ equity |
$ |
4,671,383 |
|
|
$ |
4,632,218 |
|
|
$ |
4,482,771 |
|
|
$ |
4,298,356 |
|
|
$ |
4,382,887 |
|
$ |
4,596,148 |
|
|
$ |
4,195,899 |
|
Less: Average intangible assets |
|
(681,520 |
) |
|
|
(682,561 |
) |
|
|
(675,247 |
) |
|
|
(676,371 |
) |
|
|
(678,953 |
) |
|
(679,799 |
) |
|
|
(680,869 |
) |
(Q) Total average tangible common shareholders’ equity
(non-GAAP) |
$ |
3,989,863 |
|
|
$ |
3,949,657 |
|
|
$ |
3,807,524 |
|
|
$ |
3,621,985 |
|
|
$ |
3,703,934 |
|
$ |
3,916,349 |
|
|
$ |
3,515,030 |
|
Return on average common equity, annualized
(N/P) |
|
13.35 |
% |
|
|
12.79 |
% |
|
|
15.67 |
% |
|
|
12.72 |
% |
|
|
12.31 |
% |
|
13.91 |
% |
|
|
10.96 |
% |
Return on average tangible common equity, annualized
(non-GAAP) (O/Q) |
|
15.73 |
|
|
|
15.12 |
|
|
|
18.55 |
|
|
|
15.21 |
|
|
|
14.68 |
|
|
16.43 |
|
|
|
13.21 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of Non-GAAP Pre-Tax, Pre-Provision
Income: |
|
|
|
|
|
Income
before taxes |
$ |
224,858 |
|
|
$ |
211,430 |
|
|
$ |
243,550 |
|
|
$ |
195,173 |
|
|
$ |
200,041 |
|
$ |
679,838 |
|
|
$ |
505,382 |
|
Add:
Provision for credit losses |
|
19,923 |
|
|
|
28,514 |
|
|
|
23,045 |
|
|
|
47,646 |
|
|
|
6,420 |
|
|
71,482 |
|
|
|
30,943 |
|
Pre-tax income, excluding provision for credit losses
(non-GAAP) |
$ |
244,781 |
|
|
$ |
239,944 |
|
|
$ |
266,595 |
|
|
$ |
242,819 |
|
|
$ |
206,461 |
|
$ |
751,320 |
|
|
$ |
536,325 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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, Countryside, Crete, Darien, Deerfield, Des
Plaines, Downers Grove, Elgin, Elk Grove Village, Elmhurst,
Evanston, Evergreen Park, Frankfort, Geneva, Glen Ellyn, Glencoe,
Glenview, Grayslake, Gurnee, 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,
Norridge, Northfield, Oak Lawn, Oak Park, Orland Park, Palatine,
Park Ridge, Prospect Heights, Riverside, Rockford, Rolling Meadows,
Round Lake Beach, Shorewood, Skokie, 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 Florida in Bonita Springs and Naples, and in Dyer,
Indiana.
Additionally, the Company operates various non-bank business
units:
- FIRST Insurance Funding and Wintrust Life Finance, each a
division of Lake Forest Bank & Trust Company, N.A., serve
commercial and life insurance loan customers, respectively,
throughout the United States.
- First Insurance Funding of Canada serves commercial insurance
loan customers throughout Canada.
- Tricom, Inc. of Milwaukee provides high-yielding, short-term
accounts receivable financing and value-added out-sourced
administrative services, such as data processing of payrolls,
billing and cash management services, to temporary staffing service
clients located throughout the United States.
- Wintrust Mortgage, a division of Barrington Bank &
Trust Company, N.A., engages primarily in the origination and
purchase of residential mortgages for sale into the secondary
market through origination offices located throughout the United
States. Loans are also originated nationwide through relationships
with wholesale and correspondent offices.
- Wintrust Investments, LLC is a broker-dealer providing a full
range of private client and brokerage services to clients and
correspondent banks located primarily in the Midwest.
- Great Lakes Advisors LLC provides money management services and
advisory services to individual accounts.
- The Chicago Trust Company, N.A., a trust subsidiary, allows
Wintrust to service customers’ trust and investment needs at each
banking location.
- Wintrust Asset Finance offers direct leasing
opportunities.
- CDEC provides Qualified Intermediary services (as defined by
U.S. Treasury regulations) for taxpayers seeking to structure
tax-deferred like-kind exchanges under Internal Revenue Code
Section 1031.
FORWARD-LOOKING STATEMENTS
This document contains forward-looking
statements within the meaning of federal securities laws.
Forward-looking information can be identified through the use of
words such as “intend,” “plan,” “project,” “expect,” “anticipate,”
“believe,” “estimate,” “contemplate,” “possible,” “will,” “may,”
“should,” “would” and “could.” Forward-looking statements and
information are not historical facts, are premised on many factors
and assumptions, and represent only management’s expectations,
estimates and projections regarding future events. Similarly, these
statements are not guarantees of future performance and involve
certain risks and uncertainties that are difficult to predict, and
which may include, but are not limited to, those listed below and
the Risk Factors discussed under Item 1A of the Company’s 2022
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, 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, and management’s long-term
performance goals, as well as statements relating to the
anticipated effects on the Company’s financial condition and
results of operations from expected developments or events. Actual
results could differ materially from those addressed in the
forward-looking statements as a result of numerous factors,
including the following:
- 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,
including an actual or threatened U.S. government debt default or
rating downgrade, 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 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 and similar
events 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, and
ability of the Company to effectively manage the transition of the
chief executive officer role;
- 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 and the impact of
recent failures of financial institutions, including broader
financial institution liquidity risk and concerns;
- 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 transition from
LIBOR to an alternative benchmark 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;
- changes in laws, regulations, rules, standards and contractual
obligations regarding data privacy and cybersecurity;
- 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
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;
- 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; and
- 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.
Therefore, there can be no assurances that
future actual results will correspond to these forward-looking
statements. The reader is cautioned not to place undue reliance on
any forward-looking statement made by the Company. Any such
statement speaks only as of the date the statement was made or as
of such date that may be referenced within the statement. The
Company undertakes no obligation to update any forward-looking
statement to reflect the impact of circumstances or events after
the date of the press release. Persons are advised, however, to
consult further disclosures management makes on related subjects in
its reports filed with the Securities and Exchange Commission and
in its press releases.
CONFERENCE CALL, WEBCAST AND
REPLAY
The Company will hold a conference call on
Wednesday, October 18, 2023 at 10:00 a.m. (CDT) regarding third
quarter and year-to-date 2023 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 Conference Call Link included within
the Company’s press release dated September 29, 2023 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 third quarter and year-to-date 2023 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:
Timothy S. Crane, President & Chief Executive Officer
David A. Dykstra, Vice Chairman & Chief Operating
Officer
(847) 939-9000
Web site address: www.wintrust.com
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