ROSEMONT, Ill., April 17, 2024 (GLOBE NEWSWIRE)
-- Wintrust Financial Corporation (“Wintrust”, “the Company”, “we”
or “our”) (Nasdaq: WTFC) announced record quarterly net income of
$187.3 million or $2.89 per diluted common share for the first
quarter of 2024, an increase in diluted earnings per common share
of 55% compared to the fourth quarter of 2023. Pre-tax,
pre-provision income (non-GAAP) totaled a record $271.6 million, up
30% as compared to $208.2 million in the fourth quarter of
2023.
Timothy S. Crane, President and Chief Executive
Officer, commented, “Following record net income in 2023, we
continued our momentum with strong results to start 2024. We
leveraged our balanced, multi-faceted business model and position
as Chicago’s and Wisconsin’s bank to grow deposits and loans while
maintaining our consistent credit standards coupled with expense
management.”
Additionally, Mr. Crane noted, “The first
quarter exhibited funding strong loan growth with
competitively-priced deposits in accordance with the increased loan
demand. Increasing our long-term franchise value and net interest
income remains our focus as we consider opportunities in the
markets we serve.”
Highlights of the first quarter of
2024:
Comparative information to the fourth quarter of
2023, unless otherwise noted
- Total loans increased by
approximately $1.1 billion, or 10% annualized.
- Total deposits increased by
approximately $1.1 billion, or 9% annualized.
- Total assets increased by $1.3
billion, or 9% annualized.
- Net interest margin decreased by
five basis points to 3.57% (3.59% on a fully taxable-equivalent
basis, non-GAAP) during the first quarter of 2024.
- Net interest income decreased to
$464.2 million in the first quarter of 2024 compared to $470.0
million in the fourth quarter of 2023, primarily due to one less
day in the first quarter of 2024.
- Non-interest income was impacted by
the following:
- Gains of approximately
$20.0 million from the sale of the Company’s Retirement
Benefits Advisors (“RBA”) division. This gain was partially offset
by additional commissions and incentive compensation totaling
$701,000 related to the sale transaction.
- Favorable net valuation adjustments
related to certain mortgage assets totaled $2.3 million in the
first quarter of 2024 compared to unfavorable net valuation
adjustments of $9.7 million in the fourth quarter of 2023.
- Non-interest expense was negatively
impacted by an accrual of $5.2 million for estimated amounts
owed as a result of the FDIC special assessment on uninsured
deposits in response to certain bank failures occurring in 2023.
This is in addition to the related $34.4 million accrued in
the fourth quarter of 2023 for the estimate of such FDIC special
assessments.
- Provision for credit losses totaled
$21.7 million in the first quarter of 2024 as compared to a
provision for credit losses of $42.9 million in the fourth quarter
of 2023.
- Net charge-offs totaled $21.8 million, or 21 basis points of
average total loans on an annualized basis, in the first quarter of
2024 as compared to $14.9 million, or 14 basis points of average
total loans on an annualized basis in the fourth quarter of
2023.
Mr. Crane noted, “Our net interest margin for
the first quarter stayed within our expected range, decreasing by
five basis points compared to the fourth quarter of 2023. The
decrease in net interest margin was due primarily to certain
seasonal declines in non-interest bearing deposit balances, deposit
migration to interest-bearing products and competitive deposit
pricing to fund quality loan growth. Loan growth during the first
quarter totaled $1.1 billion, or 10% on an annualized basis. We are
pleased with our diversified loan growth in the first quarter with
strong loan origination activity in commercial and residential real
estate portfolios, as well as growth in commercial real estate
driven primarily by draws on existing loan facilities. Deposit
growth in the first quarter of 2024 was utilized to fund our robust
loan growth as deposits increased by approximately $1.1 billion, or
9% on an annualized basis. We continue to leverage our customer
relationships and market positioning to generate deposits and build
long term franchise value. Non-interest bearing deposits decreased
due to seasonality during the first quarter while also experiencing
some migration to interest-bearing products. Despite the slightly
lower net interest income during the current period, we generated
record quarterly net revenue through our diversified sources of
revenue, including our mortgage banking and wealth management
businesses.”
Commenting on credit quality, Mr. Crane stated,
“Credit metrics have remained steady, aligning with historical
averages. Net charge-offs totaled $21.8 million, or 21 basis points
of average total loans on an annualized basis, in the first quarter
of 2024 as compared to $14.9 million, or 14 basis points of average
total loans on an annualized basis, in the fourth quarter of 2023.
Approximately $11.9 million of charge-offs in the current quarter
were previously reserved for in the fourth quarter of 2023
Non-performing loans totaled $148.4 million, or 0.34% of total
loans, at the end of the first quarter of 2024 compared to $139.0
million, or 0.33% of total loans, at the end of the fourth quarter
of 2023. We continue to conservatively and proactively review
credit and maintain our consistently strong credit standards. The
allowance for credit losses on our core loan portfolio as of
March 31, 2024 was approximately 1.51% of the outstanding
balance (see Table 11 for additional information). We believe that
the Company’s reserves remain appropriate and we remain diligent in
our review of credit.”
Mr. Crane added, “Late loan growth in the first
quarter creates positive revenue momentum moving forward as
period-end loan balances exceeded averages. We continue to see good
opportunities in the markets we serve and feel well positioned to
grow deposit and loan relationships in future quarters. Our focus
remains on winning business and maximizing long term franchise
value.”
In summary, Mr. Crane noted, “The quarter was
strong, momentum remains good and we are excited about the
agreement reached to acquire Macatawa Bank Corporation in Michigan
(announced April 15, 2024). The ability to expand with a high
quality bank with a strong low-cost core deposit base, excess
liquidity, exceptional asset quality and a committed management
team is a terrific fit for Wintrust.”
The graphs below illustrate certain financial
highlights of the first quarter of 2024 as well as historical
financial performance. See “Supplemental Non-GAAP Financial
Measures/Ratios” at Table 16 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/813fc027-da7e-4253-a341-e3d12f08e2d6
SUMMARY OF RESULTS:
BALANCE SHEET
Total assets increased $1.3 billion in the first
quarter of 2024 as compared to the fourth quarter of 2023. Total
loans increased by $1.1 billion as compared to the fourth quarter
of 2023. The increase in loans was the result of diversified loan
growth primarily across the commercial and residential real estate
portfolios coupled with draws on existing commercial real-estate
loan facilities.
Total liabilities increased by $1.3 billion in
the first quarter of 2024 as compared to the fourth quarter of 2023
primarily due to a $1.1 billion increase in total deposits.
Non-interest bearing deposits as a percentage of total deposits was
21% at March 31, 2024 compared to 23% at December 31,
2023. The Company's loans to deposits ratio ended the quarter at
93.1%.
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 first quarter of 2024, net interest
income totaled $464.2 million, a decrease of $5.8 million as
compared to the fourth quarter of 2023. The $5.8 million decrease
in net interest income in the first quarter of 2024 compared to the
fourth quarter of 2023 was primarily due to one less day during the
period as well as a five basis point decrease in the net interest
margin, partially offset by a $755.8 million increase in average
earning assets.
Net interest margin was 3.57% (3.59% on a fully
taxable-equivalent basis, non-GAAP) during the first quarter of
2024 compared to 3.62% (3.64% on a fully taxable-equivalent basis,
non-GAAP) during the fourth quarter of 2023. The net interest
margin decrease as compared to the fourth quarter of 2023 was
primarily due to a 15 basis point increase in the rate paid on
interest-bearing liabilities. This decrease was partially offset by
a nine basis point increase in yield on earning assets and a one
basis point increase in the net free funds contribution. The 15
basis point increase on the rate paid on interest-bearing
liabilities in the first quarter of 2024 as compared to the fourth
quarter of 2023 was primarily due to a 16 basis point increase in
the rate paid on interest-bearing deposits. The nine basis point
increase in the yield on earning assets in the first quarter of
2024 as compared to the fourth quarter of 2023 was primarily due to
an 11 basis point expansion on loan yields.
For more information regarding net interest
income, see Table 4 through Table 7 in this report.
ASSET QUALITY
The allowance for credit losses totaled $427.5
million as of March 31, 2024, relatively unchanged compared to
$427.6 million as of December 31, 2023. A provision for credit
losses totaling $21.7 million was recorded for the first quarter of
2024 as compared to $42.9 million recorded in the fourth quarter of
2023. For more information regarding the allowance for credit
losses and provision for credit losses, see Table 10 in this
report.
Management believes the allowance for credit
losses is appropriate to account for expected credit losses. The
Current Expected Credit Losses 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
March 31, 2024, December 31, 2023, and September 30,
2023 is shown on Table 11 of this report.
Net charge-offs totaled $21.8 million in the
first quarter of 2024, as compared to $14.9 million of net
charge-offs in the fourth quarter of 2023. The increase in net
charge-offs during the first quarter of 2024 was primarily the
result of increased net charge-offs within the commercial
portfolio. Net charge-offs as a percentage of average total loans
were 21 basis points in the first quarter of 2024 on an annualized
basis compared to 14 basis points on an annualized basis in the
fourth quarter of 2023. For more information regarding net
charge-offs, see Table 9 in this report.
The Company’s delinquency rates remain low and
manageable. For more information regarding past due loans, see
Table 12 in this report.
Non-performing assets totaled $162.9 million and
comprised 0.28% of total assets as of March 31, 2024, as
compared to $152.3 million as of December 31, 2023.
Non-performing loans totaled $148.4 million, or 0.34% of total
loans, at March 31, 2024. The increase in the first quarter of
2024 was primarily due to an increase in certain credits within the
commercial real estate portfolio becoming nonaccrual as well as
increases within the property and casualty insurance premium
finance receivables portfolio, partially offset by a decrease
within the commercial portfolio. For more information regarding
non-performing assets, see Table 13 in this report.
Though these credit metrics increased during the
period, net charge-offs as a percentage of average total loans and
non-performing loans as a percentage of total loans remained at
historically low levels in the first quarter of 2024.
NON-INTEREST INCOME
Wealth management revenue increased by $1.5
million in the first quarter of 2024 as compared to the fourth
quarter of 2023 primarily due to increased asset management fees
from higher assets under management during the period. Wealth
management revenue is comprised of the trust and asset management
revenue of The Chicago Trust Company and Great Lakes Advisors, the
brokerage commissions, managed money fees and insurance product
commissions at Wintrust Investments and fees from tax-deferred
like-kind exchange services provided by the Chicago Deferred
Exchange Company.
Mortgage banking revenue increased by $20.2
million in the first quarter of 2024 as compared to the fourth
quarter of 2023 primarily due to a $5.0 million favorable valuation
adjustment to the fair value of mortgage servicing rights, net of
servicing hedge, in the first quarter of 2024 compared to a $16.1
million unfavorable adjustment in the fourth quarter of 2023, as
well as $6.6 million higher in production revenue. This was
partially offset by an unfavorable adjustment to 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, of $2.2
million in the first quarter of 2024 compared to a $4.9 million
favorable adjustment in the fourth 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 $1.3 million in net gains
on investment securities in the first quarter of 2024 as compared
to $2.5 million in net gains in the fourth quarter of 2023. The
change from period to period was primarily the result of lower
unrealized gains on the Company’s equity investment securities with
a readily determinable fair value, partially offset by higher
realized gains from the liquidation of an equity investment
security without a readily determinable fair value in the first
quarter of 2024.
Fluctuations in trading gains and losses in the
first quarter of 2024 compared to the fourth quarter of 2023 were
primarily the result of fair value adjustments related to interest
rate derivatives not designated as hedges.
Other income increased by $17.6 million in the
first quarter of 2024 compared to the fourth quarter of 2023
primarily due to a $20.0 million gain recognized related to
the sale of the Company’s RBA division within its wealth management
business. This was partially offset by an unfavorable adjustment to
the Company’s held-for-investment portfolio of early buy-out
exercised loans guaranteed by U.S. government agencies, which are
held at fair value, of $2.1 million when compared to the fourth
quarter of 2023, as well as lower interest rate swap fees and
unfavorable foreign currency remeasurement adjustments.
For more information regarding non-interest
income, see Table 14 in this report.
NON-INTEREST EXPENSE
Salaries and employee benefits expense increased
by $1.2 million in the first quarter of 2024 as compared to the
fourth quarter of 2023. The $1.2 million increase is primarily
related to higher commissions from increased mortgage production as
well as commissions related to the sale of the Company’s RBA
division within its wealth management business in the first quarter
of 2024. This was partially offset by lower employee benefits as
employee insurance decreased in the first quarter of 2024.
Advertising and marketing expenses in the first
quarter of 2024 totaled $13.0 million, which is a $4.1 million
decrease as compared to the fourth quarter of 2023 primarily due to
a decrease in digital advertising and sponsorships.
FDIC insurance, including amounts accrued for
estimated special assessments, decreased $29.1 million in the first
quarter of 2024 as compared to the fourth quarter of 2023. This was
primarily the result of a lower accrual recognized in the first
quarter of 2024 for estimated amounts owed as a result of the FDIC
special assessment on uninsured deposits in response to certain
bank failures occurring in 2023. The Company recognized
$5.2 million in the first quarter of 2024 for such special
assessment compared to $34.4 million in the fourth quarter of
2023.
The Company recorded OREO expense of $392,000 in
the first quarter of 2024, compared to net OREO income of $1.6
million in the fourth quarter of 2023 related to realized gains on
sales of OREO.
For more information regarding non-interest
expense, see Table 15 in this report.
INCOME TAXES
The Company recorded income tax expense of $62.7
million in the first quarter of 2024 compared to $41.8 million in
the fourth quarter of 2023. The effective tax rates were 25.07% in
the first quarter of 2024 compared to 25.27% in the fourth quarter
of 2023. The effective tax rates were partially impacted by the tax
effects related to share-based compensation which fluctuate based
on the Company’s stock price and timing of employee stock option
exercises and vesting of other share-based awards. The Company
recorded net excess tax benefits of $4.4 million in the first
quarter of 2024, compared to net excess tax benefits of $53,000 in
the fourth quarter of 2023 related to share-based compensation. The
effective tax rates were also partially impacted due to an overall
lower level of pre-tax net income in the comparable periods,
primarily due to the accrual for the estimated amount owed as a
result of the FDIC special assessment on uninsured deposits. The
Company recorded an estimated FDIC special assessment accrual of
$5.2 million in the first quarter of 2024, compared to a $34.4
million accrual in the fourth 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 first quarter of 2024, the community
banking unit expanded its commercial, commercial real estate and
residential real estate loan portfolios.
Mortgage banking revenue was $27.7 million for
the first quarter of 2024, an increase of $20.2 million as compared
to the fourth quarter of 2023, primarily due to a $5.0 million
favorable valuation adjustment to the fair value of mortgage
servicing rights, net of servicing hedge, in the first quarter of
2024 compared to a $16.1 million unfavorable adjustment in the
fourth quarter of 2023, as well as $6.6 million higher in
production revenue. This was partially offset by an unfavorable
adjustment to 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, of $2.2 million in the first quarter
of 2024 compared to a $4.9 million favorable adjustment in the
fourth quarter of 2023. Service charges on deposit accounts totaled
$14.8 million in the first quarter of 2024, which was relatively
stable compared to the fourth quarter of 2023. The Company’s gross
commercial and commercial real estate loan pipelines remained solid
as of March 31, 2024 indicating momentum for expected
continued loan growth in the second quarter of 2024.
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 portfolios were $4.6 billion during
the first quarter of 2024 and average balances increased by $12.5
million as compared to the fourth quarter of 2023. The Company’s
leasing portfolio balance increased in the first quarter of 2024,
with its portfolio of assets, including capital leases, loans and
equipment on operating leases, totaling $3.6 billion as of
March 31, 2024 as compared to $3.4 billion as of
December 31, 2023. Revenues from the Company’s out-sourced
administrative services business were $1.2 million in the first
quarter of 2024, which was relatively stable compared to the fourth
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, and
securities brokerage services. See “Items Impacting Comparative
Results,” regarding the sale of the RBA division during the first
quarter of 2024. Wealth management revenue totaled $34.8 million in
the first quarter of 2024, increasing $1.5 million in the first
quarter of 2024 as compared to the fourth quarter of 2023 primarily
due to increased asset management fees from higher assets under
management during the period. At March 31, 2024, the Company’s
wealth management subsidiaries had approximately $48.7 billion of
assets under administration, which included $8.8 billion of assets
owned by the Company and its subsidiary banks, representing an
increase from the $47.1 billion of assets under administration at
December 31, 2023.
ITEMS IMPACTING COMPARATIVE FINANCIAL
RESULTS
Division Sale
In the first quarter of 2024, the Company sold
its RBA division and recorded a gain of approximately
$20.0 million in other non-interest income from the sale.
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 first quarter of 2024, as compared to the fourth
quarter of 2023 (sequential quarter) and first quarter of 2023
(linked quarter), are shown in the table below:
|
|
|
|
|
|
|
|
% or (1)
basis point (bp) change from
4th Quarter
2023 |
|
% or
basis point (bp) change from
1st Quarter
2023 |
|
|
|
Three Months Ended |
|
|
(Dollars in thousands, except per share data) |
|
Mar 31, 2024 |
|
Dec 31, 2023 |
|
Mar 31, 2023 |
|
|
Net income |
|
$ |
187,294 |
|
|
$ |
123,480 |
|
|
$ |
180,198 |
|
52 |
|
% |
|
4 |
|
% |
| Pre-tax
income, excluding provision for credit losses (non-GAAP)
(2) |
|
|
271,629 |
|
|
|
208,151 |
|
|
|
266,595 |
|
30 |
|
|
|
2 |
|
|
| Net
income per common share – Diluted |
|
|
2.89 |
|
|
|
1.87 |
|
|
|
2.80 |
|
55 |
|
|
|
3 |
|
|
| Cash
dividends declared per common share |
|
|
0.45 |
|
|
|
0.40 |
|
|
|
0.40 |
|
13 |
|
|
|
13 |
|
|
| Net
revenue (3) |
|
|
604,774 |
|
|
|
570,803 |
|
|
|
565,764 |
|
6 |
|
|
|
7 |
|
|
| Net
interest income |
|
|
464,194 |
|
|
|
469,974 |
|
|
|
457,995 |
|
(1 |
) |
|
|
1 |
|
|
| Net
interest margin |
|
|
3.57 |
% |
|
|
3.62 |
% |
|
|
3.81 |
% |
(5 |
) |
bps |
|
(24 |
) |
bps |
| Net
interest margin – fully taxable-equivalent (non-GAAP)
(2) |
|
|
3.59 |
|
|
|
3.64 |
|
|
|
3.83 |
|
(5 |
) |
|
|
(24 |
) |
|
| Net
overhead ratio (4) |
|
|
1.39 |
|
|
|
1.89 |
|
|
|
1.49 |
|
(50 |
) |
|
|
(10 |
) |
|
| Return on
average assets |
|
|
1.35 |
|
|
|
0.89 |
|
|
|
1.40 |
|
46 |
|
|
|
(5 |
) |
|
| Return on
average common equity |
|
|
14.42 |
|
|
|
9.93 |
|
|
|
15.67 |
|
449 |
|
|
|
(125 |
) |
|
|
Return on average tangible common equity (non-GAAP)
(2) |
|
|
16.75 |
|
|
|
11.73 |
|
|
|
18.55 |
|
502 |
|
|
|
(180 |
) |
|
|
At end of period |
|
|
|
|
|
|
|
|
|
|
|
| Total
assets |
|
$ |
57,576,933 |
|
|
$ |
56,259,934 |
|
|
$ |
52,873,511 |
|
9 |
|
% |
|
9 |
|
% |
| Total
loans (5) |
|
|
43,230,706 |
|
|
|
42,131,831 |
|
|
|
39,565,471 |
|
10 |
|
|
|
9 |
|
|
| Total
deposits |
|
|
46,448,858 |
|
|
|
45,397,170 |
|
|
|
42,718,211 |
|
9 |
|
|
|
9 |
|
|
|
Total shareholders’ equity |
|
|
5,436,400 |
|
|
|
5,399,526 |
|
|
|
5,015,506 |
|
3 |
|
|
|
8 |
|
|
(1) Period-end balance sheet percentage
changes are annualized.
(2) See
Table 16: 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 |
|
(Dollars in thousands, except per share data) |
|
Mar 31, 2024 |
|
Dec 31, 2023 |
|
Sep 30, 2023 |
|
Jun 30, 2023 |
|
Mar 31, 2023 |
|
Selected Financial Condition Data (at end of
period): |
|
Total assets |
|
$ |
57,576,933 |
|
|
$ |
56,259,934 |
|
|
$ |
55,555,246 |
|
|
$ |
54,286,176 |
|
|
$ |
52,873,511 |
|
| Total
loans (1) |
|
|
43,230,706 |
|
|
|
42,131,831 |
|
|
|
41,446,032 |
|
|
|
41,023,408 |
|
|
|
39,565,471 |
|
| Total
deposits |
|
|
46,448,858 |
|
|
|
45,397,170 |
|
|
|
44,992,686 |
|
|
|
44,038,707 |
|
|
|
42,718,211 |
|
|
Total shareholders’ equity |
|
|
5,436,400 |
|
|
|
5,399,526 |
|
|
|
5,015,613 |
|
|
|
5,041,912 |
|
|
|
5,015,506 |
|
|
Selected Statements of Income Data: |
|
|
|
|
|
|
|
|
|
|
| Net
interest income |
|
$ |
464,194 |
|
|
$ |
469,974 |
|
|
$ |
462,358 |
|
|
$ |
447,537 |
|
|
$ |
457,995 |
|
| Net
revenue (2) |
|
|
604,774 |
|
|
|
570,803 |
|
|
|
574,836 |
|
|
|
560,567 |
|
|
|
565,764 |
|
| Net
income |
|
|
187,294 |
|
|
|
123,480 |
|
|
|
164,198 |
|
|
|
154,750 |
|
|
|
180,198 |
|
| Pre-tax
income, excluding provision for credit losses (non-GAAP)
(3) |
|
|
271,629 |
|
|
|
208,151 |
|
|
|
244,781 |
|
|
|
239,944 |
|
|
|
266,595 |
|
| Net
income per common share – Basic |
|
|
2.93 |
|
|
|
1.90 |
|
|
|
2.57 |
|
|
|
2.41 |
|
|
|
2.84 |
|
| Net
income per common share – Diluted |
|
|
2.89 |
|
|
|
1.87 |
|
|
|
2.53 |
|
|
|
2.38 |
|
|
|
2.80 |
|
|
Cash dividends declared per common share |
|
|
0.45 |
|
|
|
0.40 |
|
|
|
0.40 |
|
|
|
0.40 |
|
|
|
0.40 |
|
|
Selected Financial Ratios and Other Data: |
|
|
|
|
|
|
|
|
|
|
|
Performance Ratios: |
|
|
|
|
|
|
|
|
|
|
| Net
interest margin |
|
|
3.57 |
% |
|
|
3.62 |
% |
|
|
3.60 |
% |
|
|
3.64 |
% |
|
|
3.81 |
% |
| Net
interest margin – fully taxable-equivalent (non-GAAP)
(3) |
|
|
3.59 |
|
|
|
3.64 |
|
|
|
3.62 |
|
|
|
3.66 |
|
|
|
3.83 |
|
|
Non-interest income to average assets |
|
|
1.02 |
|
|
|
0.73 |
|
|
|
0.82 |
|
|
|
0.86 |
|
|
|
0.84 |
|
|
Non-interest expense to average assets |
|
|
2.41 |
|
|
|
2.62 |
|
|
|
2.41 |
|
|
|
2.44 |
|
|
|
2.33 |
|
| Net
overhead ratio (4) |
|
|
1.39 |
|
|
|
1.89 |
|
|
|
1.59 |
|
|
|
1.58 |
|
|
|
1.49 |
|
| Return on
average assets |
|
|
1.35 |
|
|
|
0.89 |
|
|
|
1.20 |
|
|
|
1.18 |
|
|
|
1.40 |
|
| Return on
average common equity |
|
|
14.42 |
|
|
|
9.93 |
|
|
|
13.35 |
|
|
|
12.79 |
|
|
|
15.67 |
|
| Return on
average tangible common equity (non-GAAP) (3) |
|
|
16.75 |
|
|
|
11.73 |
|
|
|
15.73 |
|
|
|
15.12 |
|
|
|
18.55 |
|
| Average
total assets |
|
$ |
55,602,695 |
|
|
$ |
55,017,075 |
|
|
$ |
54,381,981 |
|
|
$ |
52,601,953 |
|
|
$ |
52,075,318 |
|
| Average
total shareholders’ equity |
|
|
5,440,457 |
|
|
|
5,066,196 |
|
|
|
5,083,883 |
|
|
|
5,044,718 |
|
|
|
4,895,271 |
|
| Average
loans to average deposits ratio |
|
|
94.5 |
% |
|
|
92.9 |
% |
|
|
92.4 |
% |
|
|
94.3 |
% |
|
|
93.0 |
% |
|
Period-end loans to deposits ratio |
|
|
93.1 |
|
|
|
92.8 |
|
|
|
92.1 |
|
|
|
93.2 |
|
|
|
92.6 |
|
|
Common Share Data at end of period: |
|
|
|
|
|
|
|
|
|
|
| Market
price per common share |
|
$ |
104.39 |
|
|
$ |
92.75 |
|
|
$ |
75.50 |
|
|
$ |
72.62 |
|
|
$ |
72.95 |
|
| Book
value per common share |
|
|
81.38 |
|
|
|
81.43 |
|
|
|
75.19 |
|
|
|
75.65 |
|
|
|
75.24 |
|
| Tangible
book value per common share (non-GAAP) (3) |
|
|
70.40 |
|
|
|
70.33 |
|
|
|
64.07 |
|
|
|
64.50 |
|
|
|
64.22 |
|
|
Common shares outstanding |
|
|
61,736,715 |
|
|
|
61,243,626 |
|
|
|
61,222,058 |
|
|
|
61,197,676 |
|
|
|
61,176,415 |
|
|
Other Data at end of period: |
|
|
|
|
|
|
|
|
|
|
| Common
equity to assets ratio |
|
|
8.7 |
% |
|
|
8.9 |
% |
|
|
8.3 |
% |
|
|
8.5 |
% |
|
|
8.7 |
% |
| Tangible
common equity ratio (non-GAAP) (3) |
|
|
7.6 |
|
|
|
7.7 |
|
|
|
7.1 |
|
|
|
7.4 |
|
|
|
7.5 |
|
| Tier 1
leverage ratio (5) |
|
|
9.5 |
|
|
|
9.3 |
|
|
|
9.2 |
|
|
|
9.3 |
|
|
|
9.1 |
|
|
Risk-based capital ratios: |
|
|
|
|
|
|
|
|
|
|
| Tier 1
capital ratio (5) |
|
|
10.3 |
|
|
|
10.3 |
|
|
|
10.2 |
|
|
|
10.1 |
|
|
|
10.1 |
|
| Common
equity tier 1 capital ratio (5) |
|
|
9.5 |
|
|
|
9.4 |
|
|
|
9.3 |
|
|
|
9.3 |
|
|
|
9.2 |
|
| Total
capital ratio (5) |
|
|
12.2 |
|
|
|
12.1 |
|
|
|
12.0 |
|
|
|
12.0 |
|
|
|
12.1 |
|
| Allowance
for credit losses (6) |
|
$ |
427,504 |
|
|
$ |
427,612 |
|
|
$ |
399,531 |
|
|
$ |
387,786 |
|
|
$ |
376,261 |
|
| Allowance
for loan and unfunded lending-related commitment losses to total
loans |
|
|
0.99 |
% |
|
|
1.01 |
% |
|
|
0.96 |
% |
|
|
0.94 |
% |
|
|
0.95 |
% |
| Number
of: |
|
|
|
|
|
|
|
|
|
|
|
Bank subsidiaries |
|
|
15 |
|
|
|
15 |
|
|
|
15 |
|
|
|
15 |
|
|
|
15 |
|
|
Banking offices |
|
|
176 |
|
|
|
174 |
|
|
|
174 |
|
|
|
175 |
|
|
|
174 |
|
(1) Excludes mortgage loans
held-for-sale.
(2) Net revenue is net interest income plus
non-interest income.
(3) See Table 16: 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) |
|
|
|
Mar 31, |
|
Dec 31, |
|
Sep 30, |
|
Jun 30, |
|
Mar 31, |
|
(In thousands) |
|
|
2024 |
|
|
|
2023 |
|
|
|
2023 |
|
|
|
2023 |
|
|
|
2023 |
|
|
Assets |
|
|
|
|
|
|
|
|
|
|
| Cash and
due from banks |
|
$ |
379,825 |
|
|
$ |
423,404 |
|
|
$ |
418,088 |
|
|
$ |
513,858 |
|
|
$ |
445,928 |
|
| Federal
funds sold and securities purchased under resale agreements |
|
|
61 |
|
|
|
60 |
|
|
|
60 |
|
|
|
59 |
|
|
|
58 |
|
|
Interest-bearing deposits with banks |
|
|
2,131,077 |
|
|
|
2,084,323 |
|
|
|
2,448,570 |
|
|
|
2,163,708 |
|
|
|
1,563,578 |
|
|
Available-for-sale securities, at fair value |
|
|
4,387,598 |
|
|
|
3,502,915 |
|
|
|
3,611,835 |
|
|
|
3,492,481 |
|
|
|
3,259,845 |
|
|
Held-to-maturity securities, at amortized cost |
|
|
3,810,015 |
|
|
|
3,856,916 |
|
|
|
3,909,150 |
|
|
|
3,564,473 |
|
|
|
3,606,391 |
|
| Trading
account securities |
|
|
2,184 |
|
|
|
4,707 |
|
|
|
1,663 |
|
|
|
3,027 |
|
|
|
102 |
|
| Equity
securities with readily determinable fair value |
|
|
119,777 |
|
|
|
139,268 |
|
|
|
134,310 |
|
|
|
116,275 |
|
|
|
111,943 |
|
| Federal
Home Loan Bank and Federal Reserve Bank stock |
|
|
224,657 |
|
|
|
205,003 |
|
|
|
204,040 |
|
|
|
195,117 |
|
|
|
244,957 |
|
| Brokerage
customer receivables |
|
|
13,382 |
|
|
|
10,592 |
|
|
|
14,042 |
|
|
|
15,722 |
|
|
|
16,042 |
|
| Mortgage
loans held-for-sale, at fair value |
|
|
339,884 |
|
|
|
292,722 |
|
|
|
304,808 |
|
|
|
338,728 |
|
|
|
302,493 |
|
| Loans,
net of unearned income |
|
|
43,230,706 |
|
|
|
42,131,831 |
|
|
|
41,446,032 |
|
|
|
41,023,408 |
|
|
|
39,565,471 |
|
| Allowance
for loan losses |
|
|
(348,612 |
) |
|
|
(344,235 |
) |
|
|
(315,039 |
) |
|
|
(302,499 |
) |
|
|
(287,972 |
) |
|
Net loans |
|
|
42,882,094 |
|
|
|
41,787,596 |
|
|
|
41,130,993 |
|
|
|
40,720,909 |
|
|
|
39,277,499 |
|
| Premises,
software and equipment, net |
|
|
744,769 |
|
|
|
748,966 |
|
|
|
747,501 |
|
|
|
749,393 |
|
|
|
760,283 |
|
| Lease
investments, net |
|
|
283,557 |
|
|
|
281,280 |
|
|
|
275,152 |
|
|
|
274,351 |
|
|
|
256,301 |
|
| Accrued
interest receivable and other assets |
|
|
1,580,142 |
|
|
|
1,551,899 |
|
|
|
1,674,681 |
|
|
|
1,455,748 |
|
|
|
1,413,795 |
|
| Trade
date securities receivable |
|
|
— |
|
|
|
690,722 |
|
|
|
— |
|
|
|
— |
|
|
|
939,758 |
|
|
Goodwill |
|
|
656,181 |
|
|
|
656,672 |
|
|
|
656,109 |
|
|
|
656,674 |
|
|
|
653,587 |
|
| Other
acquisition-related intangible assets |
|
|
21,730 |
|
|
|
22,889 |
|
|
|
24,244 |
|
|
|
25,653 |
|
|
|
20,951 |
|
|
Total assets |
|
$ |
57,576,933 |
|
|
$ |
56,259,934 |
|
|
$ |
55,555,246 |
|
|
$ |
54,286,176 |
|
|
$ |
52,873,511 |
|
|
Liabilities and Shareholders’ Equity |
|
|
|
|
|
|
|
|
|
|
|
Deposits: |
|
|
|
|
|
|
|
|
|
|
|
Non-interest-bearing |
|
$ |
9,908,183 |
|
|
$ |
10,420,401 |
|
|
$ |
10,347,006 |
|
|
$ |
10,604,915 |
|
|
$ |
11,236,083 |
|
|
Interest-bearing |
|
|
36,540,675 |
|
|
|
34,976,769 |
|
|
|
34,645,680 |
|
|
|
33,433,792 |
|
|
|
31,482,128 |
|
|
Total deposits |
|
|
46,448,858 |
|
|
|
45,397,170 |
|
|
|
44,992,686 |
|
|
|
44,038,707 |
|
|
|
42,718,211 |
|
| Federal
Home Loan Bank advances |
|
|
2,676,751 |
|
|
|
2,326,071 |
|
|
|
2,326,071 |
|
|
|
2,026,071 |
|
|
|
2,316,071 |
|
| Other
borrowings |
|
|
575,408 |
|
|
|
645,813 |
|
|
|
643,999 |
|
|
|
665,219 |
|
|
|
583,548 |
|
|
Subordinated notes |
|
|
437,965 |
|
|
|
437,866 |
|
|
|
437,731 |
|
|
|
437,628 |
|
|
|
437,493 |
|
| Junior
subordinated debentures |
|
|
253,566 |
|
|
|
253,566 |
|
|
|
253,566 |
|
|
|
253,566 |
|
|
|
253,566 |
|
| Accrued
interest payable and other liabilities |
|
|
1,747,985 |
|
|
|
1,799,922 |
|
|
|
1,885,580 |
|
|
|
1,823,073 |
|
|
|
1,549,116 |
|
|
Total liabilities |
|
|
52,140,533 |
|
|
|
50,860,408 |
|
|
|
50,539,633 |
|
|
|
49,244,264 |
|
|
|
47,858,005 |
|
|
Shareholders’ Equity: |
|
|
|
|
|
|
|
|
|
|
|
Preferred stock |
|
|
412,500 |
|
|
|
412,500 |
|
|
|
412,500 |
|
|
|
412,500 |
|
|
|
412,500 |
|
|
Common stock |
|
|
61,798 |
|
|
|
61,269 |
|
|
|
61,244 |
|
|
|
61,219 |
|
|
|
61,198 |
|
|
Surplus |
|
|
1,954,532 |
|
|
|
1,943,806 |
|
|
|
1,933,226 |
|
|
|
1,923,623 |
|
|
|
1,913,947 |
|
|
Treasury stock |
|
|
(5,757 |
) |
|
|
(2,217 |
) |
|
|
(1,966 |
) |
|
|
(1,966 |
) |
|
|
(1,966 |
) |
|
Retained earnings |
|
|
3,498,475 |
|
|
|
3,345,399 |
|
|
|
3,253,332 |
|
|
|
3,120,626 |
|
|
|
2,997,263 |
|
|
Accumulated other comprehensive loss |
|
|
(485,148 |
) |
|
|
(361,231 |
) |
|
|
(642,723 |
) |
|
|
(474,090 |
) |
|
|
(367,436 |
) |
|
Total shareholders’ equity |
|
|
5,436,400 |
|
|
|
5,399,526 |
|
|
|
5,015,613 |
|
|
|
5,041,912 |
|
|
|
5,015,506 |
|
|
Total liabilities and shareholders’ equity |
|
$ |
57,576,933 |
|
|
$ |
56,259,934 |
|
|
$ |
55,555,246 |
|
|
$ |
54,286,176 |
|
|
$ |
52,873,511 |
|
WINTRUST FINANCIAL CORPORATION
AND
SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME
(UNAUDITED)
|
|
Three Months Ended |
|
(Dollars in thousands, except per share data) |
Mar 31,
2024 |
|
Dec 31,
2023 |
|
Sep 30,
2023 |
|
Jun 30,
2023 |
|
Mar 31,
2023 |
|
Interest income |
|
|
|
|
|
|
|
|
|
|
Interest and fees on loans |
$ |
710,341 |
|
|
$ |
694,943 |
|
|
$ |
666,260 |
|
|
$ |
621,057 |
|
|
$ |
558,692 |
|
|
Mortgage loans held-for-sale |
|
4,146 |
|
|
|
4,318 |
|
|
|
4,767 |
|
|
|
4,178 |
|
|
|
3,528 |
|
|
Interest-bearing deposits with banks |
|
16,658 |
|
|
|
21,762 |
|
|
|
26,866 |
|
|
|
16,882 |
|
|
|
13,468 |
|
|
Federal funds sold and securities purchased under resale
agreements |
|
19 |
|
|
|
578 |
|
|
|
1,157 |
|
|
|
1 |
|
|
|
70 |
|
|
Investment securities |
|
69,678 |
|
|
|
68,237 |
|
|
|
59,164 |
|
|
|
51,243 |
|
|
|
59,943 |
|
|
Trading account securities |
|
18 |
|
|
|
15 |
|
|
|
6 |
|
|
|
6 |
|
|
|
14 |
|
|
Federal Home Loan Bank and Federal Reserve Bank stock |
|
4,478 |
|
|
|
3,792 |
|
|
|
3,896 |
|
|
|
3,544 |
|
|
|
3,680 |
|
|
Brokerage customer receivables |
|
175 |
|
|
|
203 |
|
|
|
284 |
|
|
|
265 |
|
|
|
295 |
|
|
Total interest income |
|
805,513 |
|
|
|
793,848 |
|
|
|
762,400 |
|
|
|
697,176 |
|
|
|
639,690 |
|
|
Interest expense |
|
|
|
|
|
|
|
|
|
|
Interest on deposits |
|
299,532 |
|
|
|
285,390 |
|
|
|
262,783 |
|
|
|
213,495 |
|
|
|
144,802 |
|
|
Interest on Federal Home Loan Bank advances |
|
22,048 |
|
|
|
18,316 |
|
|
|
17,436 |
|
|
|
17,399 |
|
|
|
19,135 |
|
|
Interest on other borrowings |
|
9,248 |
|
|
|
9,557 |
|
|
|
9,384 |
|
|
|
8,485 |
|
|
|
7,854 |
|
|
Interest on subordinated notes |
|
5,487 |
|
|
|
5,522 |
|
|
|
5,491 |
|
|
|
5,523 |
|
|
|
5,488 |
|
|
Interest on junior subordinated debentures |
|
5,004 |
|
|
|
5,089 |
|
|
|
4,948 |
|
|
|
4,737 |
|
|
|
4,416 |
|
|
Total interest expense |
|
341,319 |
|
|
|
323,874 |
|
|
|
300,042 |
|
|
|
249,639 |
|
|
|
181,695 |
|
|
Net interest income |
|
464,194 |
|
|
|
469,974 |
|
|
|
462,358 |
|
|
|
447,537 |
|
|
|
457,995 |
|
|
Provision for credit losses |
|
21,673 |
|
|
|
42,908 |
|
|
|
19,923 |
|
|
|
28,514 |
|
|
|
23,045 |
|
|
Net interest income after provision for credit losses |
|
442,521 |
|
|
|
427,066 |
|
|
|
442,435 |
|
|
|
419,023 |
|
|
|
434,950 |
|
|
Non-interest income |
|
|
|
|
|
|
|
|
|
|
Wealth management |
|
34,815 |
|
|
|
33,275 |
|
|
|
33,529 |
|
|
|
33,858 |
|
|
|
29,945 |
|
|
Mortgage banking |
|
27,663 |
|
|
|
7,433 |
|
|
|
27,395 |
|
|
|
29,981 |
|
|
|
18,264 |
|
|
Service charges on deposit accounts |
|
14,811 |
|
|
|
14,522 |
|
|
|
14,217 |
|
|
|
13,608 |
|
|
|
12,903 |
|
|
Gains (losses) on investment securities, net |
|
1,326 |
|
|
|
2,484 |
|
|
|
(2,357 |
) |
|
|
0 |
|
|
|
1,398 |
|
|
Fees from covered call options |
|
4,847 |
|
|
|
4,679 |
|
|
|
4,215 |
|
|
|
2,578 |
|
|
|
10,391 |
|
|
Trading gains (losses), net |
|
677 |
|
|
|
(505 |
) |
|
|
728 |
|
|
|
106 |
|
|
|
813 |
|
|
Operating lease income, net |
|
14,110 |
|
|
|
14,162 |
|
|
|
13,863 |
|
|
|
12,227 |
|
|
|
13,046 |
|
|
Other |
|
42,331 |
|
|
|
24,779 |
|
|
|
20,888 |
|
|
|
20,672 |
|
|
|
21,009 |
|
|
Total non-interest income |
|
140,580 |
|
|
|
100,829 |
|
|
|
112,478 |
|
|
|
113,030 |
|
|
|
107,769 |
|
|
Non-interest expense |
|
|
|
|
|
|
|
|
|
|
Salaries and employee benefits |
|
195,173 |
|
|
|
193,971 |
|
|
|
192,338 |
|
|
|
184,923 |
|
|
|
176,781 |
|
|
Software and equipment |
|
27,731 |
|
|
|
27,779 |
|
|
|
25,951 |
|
|
|
26,205 |
|
|
|
24,697 |
|
|
Operating lease equipment |
|
10,683 |
|
|
|
10,694 |
|
|
|
12,020 |
|
|
|
9,816 |
|
|
|
9,833 |
|
|
Occupancy, net |
|
19,086 |
|
|
|
18,102 |
|
|
|
21,304 |
|
|
|
19,176 |
|
|
|
18,486 |
|
|
Data processing |
|
9,292 |
|
|
|
8,892 |
|
|
|
10,773 |
|
|
|
9,726 |
|
|
|
9,409 |
|
|
Advertising and marketing |
|
13,040 |
|
|
|
17,166 |
|
|
|
18,169 |
|
|
|
17,794 |
|
|
|
11,946 |
|
|
Professional fees |
|
9,553 |
|
|
|
8,768 |
|
|
|
8,887 |
|
|
|
8,940 |
|
|
|
8,163 |
|
|
Amortization of other acquisition-related intangible assets |
|
1,158 |
|
|
|
1,356 |
|
|
|
1,408 |
|
|
|
1,499 |
|
|
|
1,235 |
|
|
FDIC insurance |
|
14,537 |
|
|
|
43,677 |
|
|
|
9,748 |
|
|
|
9,008 |
|
|
|
8,669 |
|
|
OREO expenses, net |
|
392 |
|
|
|
(1,559 |
) |
|
|
120 |
|
|
|
118 |
|
|
|
(207 |
) |
|
Other |
|
32,500 |
|
|
|
33,806 |
|
|
|
29,337 |
|
|
|
33,418 |
|
|
|
30,157 |
|
|
Total non-interest expense |
|
333,145 |
|
|
|
362,652 |
|
|
|
330,055 |
|
|
|
320,623 |
|
|
|
299,169 |
|
|
Income before taxes |
|
249,956 |
|
|
|
165,243 |
|
|
|
224,858 |
|
|
|
211,430 |
|
|
|
243,550 |
|
|
Income tax expense |
|
62,662 |
|
|
|
41,763 |
|
|
|
60,660 |
|
|
|
56,680 |
|
|
|
63,352 |
|
|
Net income |
$ |
187,294 |
|
|
$ |
123,480 |
|
|
$ |
164,198 |
|
|
$ |
154,750 |
|
|
$ |
180,198 |
|
|
Preferred stock dividends |
|
6,991 |
|
|
|
6,991 |
|
|
|
6,991 |
|
|
|
6,991 |
|
|
|
6,991 |
|
|
Net income applicable to common shares |
$ |
180,303 |
|
|
$ |
116,489 |
|
|
$ |
157,207 |
|
|
$ |
147,759 |
|
|
$ |
173,207 |
|
|
Net income per common share - Basic |
$ |
2.93 |
|
|
$ |
1.90 |
|
|
$ |
2.57 |
|
|
$ |
2.41 |
|
|
$ |
2.84 |
|
|
Net income per common share - Diluted |
$ |
2.89 |
|
|
$ |
1.87 |
|
|
$ |
2.53 |
|
|
$ |
2.38 |
|
|
$ |
2.80 |
|
|
Cash dividends declared per common share |
$ |
0.45 |
|
|
$ |
0.40 |
|
|
$ |
0.40 |
|
|
$ |
0.40 |
|
|
$ |
0.40 |
|
|
Weighted average common shares outstanding |
|
61,481 |
|
|
|
61,236 |
|
|
|
61,213 |
|
|
|
61,192 |
|
|
|
60,950 |
|
|
Dilutive potential common shares |
|
928 |
|
|
|
1,166 |
|
|
|
964 |
|
|
|
902 |
|
|
|
873 |
|
|
Average common shares and dilutive common shares |
|
62,409 |
|
|
|
62,402 |
|
|
|
62,177 |
|
|
|
62,094 |
|
|
|
61,823 |
|
TABLE 1: LOAN
PORTFOLIO MIX AND GROWTH RATES
|
|
|
|
|
|
|
|
|
|
|
% Growth From |
|
(Dollars in thousands) |
Mar 31, 2024 |
|
Dec 31, 2023 |
|
Sep 30, 2023 |
|
Jun 30,
2023 |
|
Mar 31, 2023 |
Dec 31, 2023 (1) |
|
Mar 31, 2023 |
|
Balance: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Mortgage loans held-for-sale, excluding early buy-out exercised
loans guaranteed by U.S. government agencies |
$ |
193,064 |
|
$ |
155,529 |
|
$ |
190,511 |
|
$ |
235,570 |
|
$ |
155,687 |
97 |
% |
|
24 |
% |
|
Mortgage loans held-for-sale, early buy-out exercised loans
guaranteed by U.S. government agencies |
|
146,820 |
|
|
137,193 |
|
|
114,297 |
|
|
103,158 |
|
|
146,806 |
28 |
|
|
0 |
|
|
Total mortgage loans held-for-sale |
$ |
339,884 |
|
$ |
292,722 |
|
$ |
304,808 |
|
$ |
338,728 |
|
$ |
302,493 |
65 |
% |
|
12 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Core loans: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial |
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial and industrial |
$ |
6,105,968 |
|
$ |
5,804,629 |
|
$ |
5,894,732 |
|
$ |
5,737,633 |
|
$ |
5,855,035 |
21 |
% |
|
4 |
% |
|
Asset-based lending |
|
1,355,255 |
|
|
1,433,250 |
|
|
1,396,591 |
|
|
1,465,848 |
|
|
1,482,071 |
(22 |
) |
|
(9 |
) |
|
Municipal |
|
721,526 |
|
|
677,143 |
|
|
676,915 |
|
|
653,117 |
|
|
655,301 |
26 |
|
|
10 |
|
|
Leases |
|
2,344,295 |
|
|
2,208,368 |
|
|
2,109,628 |
|
|
1,925,767 |
|
|
1,904,137 |
25 |
|
|
23 |
|
|
PPP loans |
|
11,036 |
|
|
11,533 |
|
|
13,744 |
|
|
15,337 |
|
|
17,195 |
(17 |
) |
|
(36 |
) |
|
Commercial real estate |
|
|
|
|
|
|
|
|
|
|
|
|
|
Residential construction |
|
57,558 |
|
|
58,642 |
|
|
51,550 |
|
|
51,689 |
|
|
69,998 |
(7 |
) |
|
(18 |
) |
|
Commercial construction |
|
1,748,607 |
|
|
1,729,937 |
|
|
1,547,322 |
|
|
1,409,751 |
|
|
1,234,762 |
4 |
|
|
42 |
|
|
Land |
|
344,149 |
|
|
295,462 |
|
|
294,901 |
|
|
298,996 |
|
|
292,293 |
66 |
|
|
18 |
|
|
Office |
|
1,566,748 |
|
|
1,455,417 |
|
|
1,422,748 |
|
|
1,404,422 |
|
|
1,392,040 |
31 |
|
|
13 |
|
|
Industrial |
|
2,190,200 |
|
|
2,135,876 |
|
|
2,057,957 |
|
|
2,002,740 |
|
|
1,858,088 |
10 |
|
|
18 |
|
|
Retail |
|
1,366,415 |
|
|
1,337,517 |
|
|
1,341,451 |
|
|
1,304,083 |
|
|
1,309,680 |
9 |
|
|
4 |
|
|
Multi-family |
|
2,922,432 |
|
|
2,815,911 |
|
|
2,710,829 |
|
|
2,696,478 |
|
|
2,635,411 |
15 |
|
|
11 |
|
|
Mixed use and other |
|
1,437,328 |
|
|
1,515,402 |
|
|
1,519,422 |
|
|
1,440,652 |
|
|
1,446,806 |
(21 |
) |
|
(1 |
) |
|
Home equity |
|
340,349 |
|
|
343,976 |
|
|
343,258 |
|
|
336,974 |
|
|
337,016 |
(4 |
) |
|
1 |
|
|
Residential real estate |
|
|
|
|
|
|
|
|
|
|
|
|
|
Residential real estate loans for investment |
|
2,746,916 |
|
|
2,619,083 |
|
|
2,538,630 |
|
|
2,455,392 |
|
|
2,309,393 |
20 |
|
|
19 |
|
|
Residential mortgage loans, early buy-out eligible loans guaranteed
by U.S. government agencies |
|
90,911 |
|
|
92,780 |
|
|
97,911 |
|
|
117,024 |
|
|
119,301 |
(8 |
) |
|
(24 |
) |
|
Residential mortgage loans, early buy-out exercised loans
guaranteed by U.S. government agencies |
|
52,439 |
|
|
57,803 |
|
|
71,062 |
|
|
70,824 |
|
|
76,851 |
(37 |
) |
|
(32 |
) |
|
Total core loans |
$ |
25,402,132 |
|
$ |
24,592,729 |
|
$ |
24,088,651 |
|
$ |
23,386,727 |
|
$ |
22,995,378 |
13 |
% |
|
10 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Niche loans: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial |
|
|
|
|
|
|
|
|
|
|
|
|
|
Franchise |
$ |
1,122,302 |
|
$ |
1,092,532 |
|
$ |
1,074,162 |
|
$ |
1,091,164 |
|
$ |
1,131,913 |
11 |
% |
|
(1 |
)% |
|
Mortgage warehouse lines of credit |
|
403,245 |
|
|
230,211 |
|
|
245,450 |
|
|
381,043 |
|
|
235,684 |
302 |
|
|
71 |
|
|
Community Advantage - homeowners association |
|
475,832 |
|
|
452,734 |
|
|
424,054 |
|
|
405,042 |
|
|
389,922 |
21 |
|
|
22 |
|
|
Insurance agency lending |
|
964,022 |
|
|
921,653 |
|
|
890,197 |
|
|
925,520 |
|
|
905,727 |
18 |
|
|
6 |
|
|
Premium Finance receivables |
|
|
|
|
|
|
|
|
|
|
|
|
|
U.S. property & casualty insurance |
|
6,113,993 |
|
|
5,983,103 |
|
|
5,815,346 |
|
|
5,900,228 |
|
|
5,043,486 |
9 |
|
|
21 |
|
|
Canada property & casualty insurance |
|
826,026 |
|
|
920,426 |
|
|
907,401 |
|
|
862,470 |
|
|
695,394 |
(41 |
) |
|
19 |
|
|
Life insurance |
|
7,872,033 |
|
|
7,877,943 |
|
|
7,931,808 |
|
|
8,039,273 |
|
|
8,125,802 |
0 |
|
|
(3 |
) |
|
Consumer and other |
|
51,121 |
|
|
60,500 |
|
|
68,963 |
|
|
31,941 |
|
|
42,165 |
(62 |
) |
|
21 |
|
|
Total niche loans |
$ |
17,828,574 |
|
$ |
17,539,102 |
|
$ |
17,357,381 |
|
$ |
17,636,681 |
|
$ |
16,570,093 |
7 |
% |
|
8 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total loans, net of unearned income |
$ |
43,230,706 |
|
$ |
42,131,831 |
|
$ |
41,446,032 |
|
$ |
41,023,408 |
|
$ |
39,565,471 |
10 |
% |
|
9 |
% |
(1) Annualized.
TABLE 2: DEPOSIT
PORTFOLIO MIX AND GROWTH RATES
|
|
|
|
|
|
|
|
|
|
|
% Growth From |
|
(Dollars in thousands) |
Mar 31,
2024 |
|
Dec 31,
2023 |
|
Sep 30,
2023 |
|
Jun 30,
2023 |
|
Mar 31,
2023 |
Dec 31,
2023 (1) |
|
Mar 31, 2023 |
|
Balance: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-interest-bearing |
$ |
9,908,183 |
|
|
$ |
10,420,401 |
|
|
$ |
10,347,006 |
|
|
$ |
10,604,915 |
|
|
$ |
11,236,083 |
|
(20 |
)% |
|
(12 |
)% |
|
NOW and interest-bearing demand deposits |
|
5,720,947 |
|
|
|
5,797,649 |
|
|
|
6,006,114 |
|
|
|
5,814,836 |
|
|
|
5,576,558 |
|
(5 |
) |
|
3 |
|
|
Wealth management deposits (2) |
|
1,347,817 |
|
|
|
1,614,499 |
|
|
|
1,788,099 |
|
|
|
1,417,984 |
|
|
|
1,809,933 |
|
(66 |
) |
|
(26 |
) |
|
Money market |
|
15,617,717 |
|
|
|
15,149,215 |
|
|
|
14,478,504 |
|
|
|
14,523,124 |
|
|
|
13,552,277 |
|
12 |
|
|
15 |
|
|
Savings |
|
5,959,774 |
|
|
|
5,790,334 |
|
|
|
5,584,294 |
|
|
|
5,321,578 |
|
|
|
5,192,108 |
|
12 |
|
|
15 |
|
|
Time certificates of deposit |
|
7,894,420 |
|
|
|
6,625,072 |
|
|
|
6,788,669 |
|
|
|
6,356,270 |
|
|
|
5,351,252 |
|
77 |
|
|
48 |
|
|
Total deposits |
$ |
46,448,858 |
|
|
$ |
45,397,170 |
|
|
$ |
44,992,686 |
|
|
$ |
44,038,707 |
|
|
$ |
42,718,211 |
|
9 |
% |
|
9 |
% |
|
Mix: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-interest-bearing |
|
21 |
% |
|
|
23 |
% |
|
|
23 |
% |
|
|
24 |
% |
|
|
26 |
% |
|
|
|
|
NOW and interest-bearing demand deposits |
|
12 |
|
|
|
13 |
|
|
|
13 |
|
|
|
13 |
|
|
|
13 |
|
|
|
|
|
Wealth management deposits (2) |
|
3 |
|
|
|
4 |
|
|
|
4 |
|
|
|
3 |
|
|
|
4 |
|
|
|
|
|
Money market |
|
34 |
|
|
|
33 |
|
|
|
32 |
|
|
|
33 |
|
|
|
32 |
|
|
|
|
|
Savings |
|
13 |
|
|
|
13 |
|
|
|
13 |
|
|
|
12 |
|
|
|
12 |
|
|
|
|
|
Time certificates of deposit |
|
17 |
|
|
|
14 |
|
|
|
15 |
|
|
|
15 |
|
|
|
13 |
|
|
|
|
|
Total deposits |
|
100 |
% |
|
|
100 |
% |
|
|
100 |
% |
|
|
100 |
% |
|
|
100 |
% |
|
|
|
(1) Annualized.
(2) Represents deposit
balances of the Company’s subsidiary banks from brokerage customers
of Wintrust Investments, Chicago Deferred Exchange
Company, LLC (“CDEC”), and trust and asset management customers
of the Company.
TABLE 3: TIME
CERTIFICATES OF DEPOSIT MATURITY/RE-PRICING ANALYSIS
As of March 31, 2024
|
(Dollars in thousands) |
|
Total Time
Certificates of
Deposit |
|
Weighted-Average
Rate of Maturing
Time Certificates
of Deposit |
|
1-3 months |
|
$ |
2,250,084 |
|
|
4.53 |
% |
|
4-6 months |
|
|
2,431,414 |
|
|
4.76 |
|
|
7-9 months |
|
|
1,658,270 |
|
|
4.32 |
|
|
10-12 months |
|
|
991,137 |
|
|
4.06 |
|
|
13-18 months |
|
|
438,441 |
|
|
3.71 |
|
|
19-24 months |
|
|
55,853 |
|
|
2.50 |
|
|
24+ months |
|
|
69,221 |
|
|
1.78 |
|
|
Total |
|
$ |
7,894,420 |
|
|
4.42 |
% |
TABLE 4:
QUARTERLY AVERAGE BALANCES
|
|
|
Average Balance for three months ended, |
|
|
|
Mar 31, |
|
Dec 31, |
|
Sep 30, |
|
Jun 30, |
|
Mar 31, |
|
(In thousands) |
|
|
2024 |
|
|
|
2023 |
|
|
|
2023 |
|
|
|
2023 |
|
|
|
2023 |
|
|
Interest-bearing deposits with banks, securities purchased under
resale agreements and cash equivalents (1) |
|
$ |
1,254,332 |
|
|
$ |
1,682,176 |
|
|
$ |
2,053,568 |
|
|
$ |
1,454,057 |
|
|
$ |
1,235,748 |
|
|
Investment securities (2) |
|
|
8,349,796 |
|
|
|
7,971,068 |
|
|
|
7,706,285 |
|
|
|
7,252,582 |
|
|
|
7,956,722 |
|
| FHLB and
FRB stock |
|
|
230,648 |
|
|
|
204,593 |
|
|
|
201,252 |
|
|
|
223,813 |
|
|
|
233,615 |
|
|
Liquidity management assets (3) |
|
|
9,834,776 |
|
|
|
9,857,837 |
|
|
|
9,961,105 |
|
|
|
8,930,452 |
|
|
|
9,426,085 |
|
| Other
earning assets (3)(4) |
|
|
15,081 |
|
|
|
14,821 |
|
|
|
17,879 |
|
|
|
17,401 |
|
|
|
18,445 |
|
| Mortgage
loans held-for-sale |
|
|
290,275 |
|
|
|
279,569 |
|
|
|
319,099 |
|
|
|
307,683 |
|
|
|
270,966 |
|
| Loans,
net of unearned income (3)(5) |
|
|
42,129,893 |
|
|
|
41,361,952 |
|
|
|
40,707,042 |
|
|
|
40,106,393 |
|
|
|
39,093,368 |
|
|
Total earning assets (3) |
|
|
52,270,025 |
|
|
|
51,514,179 |
|
|
|
51,005,125 |
|
|
|
49,361,929 |
|
|
|
48,808,864 |
|
| Allowance
for loan and investment security losses |
|
|
(361,734 |
) |
|
|
(329,441 |
) |
|
|
(319,491 |
) |
|
|
(302,627 |
) |
|
|
(282,704 |
) |
| Cash and
due from banks |
|
|
450,267 |
|
|
|
443,989 |
|
|
|
459,819 |
|
|
|
481,510 |
|
|
|
488,457 |
|
| Other
assets |
|
|
3,244,137 |
|
|
|
3,388,348 |
|
|
|
3,236,528 |
|
|
|
3,061,141 |
|
|
|
3,060,701 |
|
|
Total assets |
|
$ |
55,602,695 |
|
|
$ |
55,017,075 |
|
|
$ |
54,381,981 |
|
|
$ |
52,601,953 |
|
|
$ |
52,075,318 |
|
|
|
|
|
|
|
|
|
|
|
|
|
| NOW and
interest-bearing demand deposits |
|
$ |
5,680,265 |
|
|
$ |
5,868,976 |
|
|
$ |
5,815,155 |
|
|
$ |
5,540,597 |
|
|
$ |
5,271,740 |
|
| Wealth
management deposits |
|
|
1,510,203 |
|
|
|
1,704,099 |
|
|
|
1,512,765 |
|
|
|
1,545,626 |
|
|
|
2,167,081 |
|
| Money
market accounts |
|
|
14,474,492 |
|
|
|
14,212,320 |
|
|
|
14,155,446 |
|
|
|
13,735,924 |
|
|
|
12,533,468 |
|
| Savings
accounts |
|
|
5,792,118 |
|
|
|
5,676,155 |
|
|
|
5,472,535 |
|
|
|
5,206,609 |
|
|
|
4,830,322 |
|
| Time
deposits |
|
|
7,148,456 |
|
|
|
6,645,980 |
|
|
|
6,495,906 |
|
|
|
5,603,024 |
|
|
|
5,041,638 |
|
|
Interest-bearing deposits |
|
|
34,605,534 |
|
|
|
34,107,530 |
|
|
|
33,451,807 |
|
|
|
31,631,780 |
|
|
|
29,844,249 |
|
| Federal
Home Loan Bank advances |
|
|
2,728,849 |
|
|
|
2,326,073 |
|
|
|
2,241,292 |
|
|
|
2,227,106 |
|
|
|
2,474,882 |
|
| Other
borrowings |
|
|
627,711 |
|
|
|
633,673 |
|
|
|
657,454 |
|
|
|
625,757 |
|
|
|
602,937 |
|
|
Subordinated notes |
|
|
437,893 |
|
|
|
437,785 |
|
|
|
437,658 |
|
|
|
437,545 |
|
|
|
437,422 |
|
| Junior
subordinated debentures |
|
|
253,566 |
|
|
|
253,566 |
|
|
|
253,566 |
|
|
|
253,566 |
|
|
|
253,566 |
|
|
Total interest-bearing liabilities |
|
|
38,653,553 |
|
|
|
37,758,627 |
|
|
|
37,041,777 |
|
|
|
35,175,754 |
|
|
|
33,613,056 |
|
|
Non-interest-bearing deposits |
|
|
9,972,646 |
|
|
|
10,406,585 |
|
|
|
10,612,009 |
|
|
|
10,908,022 |
|
|
|
12,171,631 |
|
| Other
liabilities |
|
|
1,536,039 |
|
|
|
1,785,667 |
|
|
|
1,644,312 |
|
|
|
1,473,459 |
|
|
|
1,395,360 |
|
|
Equity |
|
|
5,440,457 |
|
|
|
5,066,196 |
|
|
|
5,083,883 |
|
|
|
5,044,718 |
|
|
|
4,895,271 |
|
|
Total liabilities and shareholders’ equity |
|
$ |
55,602,695 |
|
|
$ |
55,017,075 |
|
|
$ |
54,381,981 |
|
|
$ |
52,601,953 |
|
|
$ |
52,075,318 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net free funds/contribution (6) |
|
$ |
13,616,472 |
|
|
$ |
13,755,552 |
|
|
$ |
13,963,348 |
|
|
$ |
14,186,175 |
|
|
$ |
15,195,808 |
|
(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 16: 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, |
|
|
|
Mar 31, |
|
Dec 31, |
|
Sep 30, |
|
Jun 30, |
|
Mar 31, |
|
(In thousands) |
|
|
2024 |
|
|
|
2023 |
|
|
|
2023 |
|
|
|
2023 |
|
|
|
2023 |
|
|
Interest income: |
|
|
|
|
|
|
|
|
|
|
|
Interest-bearing deposits with banks, securities purchased under
resale agreements and cash equivalents |
|
$ |
16,677 |
|
|
$ |
22,340 |
|
|
$ |
28,022 |
|
|
$ |
16,882 |
|
|
$ |
13,538 |
|
|
Investment securities |
|
|
70,228 |
|
|
|
68,812 |
|
|
|
59,737 |
|
|
|
51,795 |
|
|
|
60,494 |
|
| FHLB and
FRB stock |
|
|
4,478 |
|
|
|
3,792 |
|
|
|
3,896 |
|
|
|
3,544 |
|
|
|
3,680 |
|
|
Liquidity management assets (1) |
|
|
91,383 |
|
|
|
94,944 |
|
|
|
91,655 |
|
|
|
72,221 |
|
|
|
77,712 |
|
| Other
earning assets (1) |
|
|
198 |
|
|
|
222 |
|
|
|
291 |
|
|
|
272 |
|
|
|
313 |
|
| Mortgage
loans held-for-sale |
|
|
4,146 |
|
|
|
4,318 |
|
|
|
4,767 |
|
|
|
4,178 |
|
|
|
3,528 |
|
| Loans,
net of unearned income (1) |
|
|
712,587 |
|
|
|
697,093 |
|
|
|
668,183 |
|
|
|
622,939 |
|
|
|
560,564 |
|
|
Total interest income |
|
$ |
808,314 |
|
|
$ |
796,577 |
|
|
$ |
764,896 |
|
|
$ |
699,610 |
|
|
$ |
642,117 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest expense: |
|
|
|
|
|
|
|
|
|
|
| NOW and
interest-bearing demand deposits |
|
$ |
34,896 |
|
|
$ |
38,124 |
|
|
$ |
36,001 |
|
|
$ |
29,178 |
|
|
$ |
18,772 |
|
| Wealth
management deposits |
|
|
10,461 |
|
|
|
12,076 |
|
|
|
9,350 |
|
|
|
9,097 |
|
|
|
12,258 |
|
| Money
market accounts |
|
|
137,984 |
|
|
|
130,252 |
|
|
|
124,742 |
|
|
|
106,630 |
|
|
|
68,276 |
|
| Savings
accounts |
|
|
39,071 |
|
|
|
36,463 |
|
|
|
31,784 |
|
|
|
25,603 |
|
|
|
15,816 |
|
| Time
deposits |
|
|
77,120 |
|
|
|
68,475 |
|
|
|
60,906 |
|
|
|
42,987 |
|
|
|
29,680 |
|
|
Interest-bearing deposits |
|
|
299,532 |
|
|
|
285,390 |
|
|
|
262,783 |
|
|
|
213,495 |
|
|
|
144,802 |
|
| Federal
Home Loan Bank advances |
|
|
22,048 |
|
|
|
18,316 |
|
|
|
17,436 |
|
|
|
17,399 |
|
|
|
19,135 |
|
| Other
borrowings |
|
|
9,248 |
|
|
|
9,557 |
|
|
|
9,384 |
|
|
|
8,485 |
|
|
|
7,854 |
|
|
Subordinated notes |
|
|
5,487 |
|
|
|
5,522 |
|
|
|
5,491 |
|
|
|
5,523 |
|
|
|
5,488 |
|
| Junior
subordinated debentures |
|
|
5,004 |
|
|
|
5,089 |
|
|
|
4,948 |
|
|
|
4,737 |
|
|
|
4,416 |
|
|
Total interest expense |
|
$ |
341,319 |
|
|
$ |
323,874 |
|
|
$ |
300,042 |
|
|
$ |
249,639 |
|
|
$ |
181,695 |
|
|
|
|
|
|
|
|
|
|
|
|
|
| Less:
Fully taxable-equivalent adjustment |
|
|
(2,801 |
) |
|
|
(2,729 |
) |
|
|
(2,496 |
) |
|
|
(2,434 |
) |
|
|
(2,427 |
) |
| Net
interest income (GAAP) (2) |
|
|
464,194 |
|
|
|
469,974 |
|
|
|
462,358 |
|
|
|
447,537 |
|
|
|
457,995 |
|
| Fully
taxable-equivalent adjustment |
|
|
2,801 |
|
|
|
2,729 |
|
|
|
2,496 |
|
|
|
2,434 |
|
|
|
2,427 |
|
|
Net interest income, fully taxable-equivalent (non-GAAP)
(2) |
|
$ |
466,995 |
|
|
$ |
472,703 |
|
|
$ |
464,854 |
|
|
$ |
449,971 |
|
|
$ |
460,422 |
|
(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 16: 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, |
|
|
|
Mar 31, 2024 |
|
Dec 31, 2023 |
|
Sep 30,
2023 |
|
Jun 30, 2023 |
|
Mar 31,
2023 |
|
Yield earned on: |
|
|
|
|
|
|
|
|
|
|
|
Interest-bearing deposits with banks, securities purchased under
resale agreements and cash equivalents |
|
5.35 |
% |
|
5.27 |
% |
|
5.41 |
% |
|
4.66 |
% |
|
4.44 |
% |
|
Investment securities |
|
3.38 |
|
|
3.42 |
|
|
3.08 |
|
|
2.86 |
|
|
3.08 |
|
|
FHLB and FRB stock |
|
7.81 |
|
|
7.35 |
|
|
7.68 |
|
|
6.35 |
|
|
6.39 |
|
|
Liquidity management assets |
|
3.74 |
|
|
3.82 |
|
|
3.65 |
|
|
3.24 |
|
|
3.34 |
|
|
Other earning assets |
|
5.25 |
|
|
5.92 |
|
|
6.47 |
|
|
6.27 |
|
|
6.87 |
|
|
Mortgage loans held-for-sale |
|
5.74 |
|
|
6.13 |
|
|
5.93 |
|
|
5.45 |
|
|
5.28 |
|
|
Loans, net of unearned income |
|
6.80 |
|
|
6.69 |
|
|
6.51 |
|
|
6.23 |
|
|
5.82 |
|
|
Total earning assets |
|
6.22 |
% |
|
6.13 |
% |
|
5.95 |
% |
|
5.68 |
% |
|
5.34 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
Rate paid on: |
|
|
|
|
|
|
|
|
|
|
|
NOW and interest-bearing demand deposits |
|
2.47 |
% |
|
2.58 |
% |
|
2.46 |
% |
|
2.11 |
% |
|
1.44 |
% |
|
Wealth management deposits |
|
2.79 |
|
|
2.81 |
|
|
2.45 |
|
|
2.36 |
|
|
2.29 |
|
|
Money market accounts |
|
3.83 |
|
|
3.64 |
|
|
3.50 |
|
|
3.11 |
|
|
2.21 |
|
|
Savings accounts |
|
2.71 |
|
|
2.55 |
|
|
2.30 |
|
|
1.97 |
|
|
1.33 |
|
|
Time deposits |
|
4.34 |
|
|
4.09 |
|
|
3.72 |
|
|
3.08 |
|
|
2.39 |
|
|
Interest-bearing deposits |
|
3.48 |
|
|
3.32 |
|
|
3.12 |
|
|
2.71 |
|
|
1.97 |
|
|
Federal Home Loan Bank advances |
|
3.25 |
|
|
3.12 |
|
|
3.09 |
|
|
3.13 |
|
|
3.14 |
|
|
Other borrowings |
|
5.92 |
|
|
5.98 |
|
|
5.66 |
|
|
5.44 |
|
|
5.28 |
|
|
Subordinated notes |
|
5.04 |
|
|
5.00 |
|
|
4.98 |
|
|
5.06 |
|
|
5.02 |
|
|
Junior subordinated debentures |
|
7.94 |
|
|
7.96 |
|
|
7.74 |
|
|
7.49 |
|
|
6.97 |
|
|
Total interest-bearing liabilities |
|
3.55 |
% |
|
3.40 |
% |
|
3.21 |
% |
|
2.85 |
% |
|
2.19 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest rate spread (1)(2) |
|
2.67 |
% |
|
2.73 |
% |
|
2.74 |
% |
|
2.83 |
% |
|
3.15 |
% |
|
Less: Fully taxable-equivalent adjustment |
|
(0.02 |
) |
|
(0.02 |
) |
|
(0.02 |
) |
|
(0.02 |
) |
|
(0.02 |
) |
|
Net free funds/contribution (3) |
|
0.92 |
|
|
0.91 |
|
|
0.88 |
|
|
0.83 |
|
|
0.68 |
|
|
Net interest margin (GAAP) (2) |
|
3.57 |
% |
|
3.62 |
% |
|
3.60 |
% |
|
3.64 |
% |
|
3.81 |
% |
|
Fully taxable-equivalent adjustment |
|
0.02 |
|
|
0.02 |
|
|
0.02 |
|
|
0.02 |
|
|
0.02 |
|
|
Net interest margin, fully taxable-equivalent (non-GAAP)
(2) |
|
3.59 |
% |
|
3.64 |
% |
|
3.62 |
% |
|
3.66 |
% |
|
3.83 |
% |
(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 16: 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:
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 |
|
Mar 31, 2024 |
|
1.9 |
% |
|
1.4 |
% |
|
1.5 |
% |
|
1.6 |
% |
| Dec 31,
2023 |
|
2.6 |
|
|
1.8 |
|
|
0.4 |
|
|
(0.7 |
) |
| 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 |
) |
|
Ramp Scenario |
+200 Basis Points |
|
+100 Basis Points |
|
-100 Basis Points |
|
-200 Basis Points |
|
Mar 31, 2024 |
0.8 |
% |
|
0.6 |
% |
|
1.3 |
% |
|
2.0 |
% |
| Dec 31,
2023 |
1.6 |
|
|
1.2 |
|
|
(0.3 |
) |
|
(1.5 |
) |
| 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 |
) |
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 may
execute additional derivatives to mitigate potential fluctuations
in the net interest margin in future years.
TABLE 8:
MATURITIES AND SENSITIVITIES TO CHANGES IN INTEREST
RATES
|
|
Loans repricing or contractual maturity
period |
|
As of March 31, 2024 |
One year or
less |
|
From one to
five years |
|
From five to fifteen years |
|
After fifteen years |
|
Total |
| (In
thousands) |
|
|
|
|
|
Commercial |
|
|
|
|
|
|
|
|
|
|
Fixed rate |
$ |
446,377 |
|
|
$ |
3,035,619 |
|
|
$ |
1,778,737 |
|
|
$ |
38,598 |
|
|
$ |
5,299,331 |
|
|
Variable rate |
|
8,202,814 |
|
|
|
1,336 |
|
|
|
— |
|
|
|
— |
|
|
|
8,204,150 |
|
|
Total commercial |
$ |
8,649,191 |
|
|
$ |
3,036,955 |
|
|
$ |
1,778,737 |
|
|
$ |
38,598 |
|
|
$ |
13,503,481 |
|
|
Commercial real estate |
|
|
|
|
|
|
|
|
|
|
Fixed rate |
|
507,960 |
|
|
|
2,472,599 |
|
|
|
364,499 |
|
|
|
53,492 |
|
|
|
3,398,550 |
|
|
Variable rate |
|
8,218,443 |
|
|
|
16,406 |
|
|
|
38 |
|
|
|
— |
|
|
|
8,234,887 |
|
|
Total commercial real estate |
$ |
8,726,403 |
|
|
$ |
2,489,005 |
|
|
$ |
364,537 |
|
|
$ |
53,492 |
|
|
$ |
11,633,437 |
|
|
Home equity |
|
|
|
|
|
|
|
|
|
|
Fixed rate |
|
9,684 |
|
|
|
3,551 |
|
|
|
— |
|
|
|
26 |
|
|
|
13,261 |
|
|
Variable rate |
|
327,088 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
327,088 |
|
|
Total home equity |
$ |
336,772 |
|
|
$ |
3,551 |
|
|
$ |
— |
|
|
$ |
26 |
|
|
$ |
340,349 |
|
|
Residential real estate |
|
|
|
|
|
|
|
|
|
|
Fixed rate |
|
19,856 |
|
|
|
3,515 |
|
|
|
30,517 |
|
|
|
1,045,088 |
|
|
|
1,098,976 |
|
|
Variable rate |
|
79,739 |
|
|
|
315,526 |
|
|
|
1,396,025 |
|
|
|
— |
|
|
|
1,791,290 |
|
|
Total residential real estate |
$ |
99,595 |
|
|
$ |
319,041 |
|
|
$ |
1,426,542 |
|
|
$ |
1,045,088 |
|
|
$ |
2,890,266 |
|
|
Premium finance receivables - property & casualty |
|
|
|
|
|
|
|
|
|
|
Fixed rate |
|
6,827,182 |
|
|
|
112,837 |
|
|
|
— |
|
|
|
— |
|
|
|
6,940,019 |
|
|
Variable rate |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
Total premium finance receivables - property & casualty |
$ |
6,827,182 |
|
|
$ |
112,837 |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
6,940,019 |
|
|
Premium finance receivables - life insurance |
|
|
|
|
|
|
|
|
|
|
Fixed rate |
|
4,452 |
|
|
|
594,634 |
|
|
|
4,000 |
|
|
|
6,991 |
|
|
|
610,077 |
|
|
Variable rate |
|
7,261,956 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
7,261,956 |
|
|
Total premium finance receivables - life insurance |
$ |
7,266,408 |
|
|
$ |
594,634 |
|
|
$ |
4,000 |
|
|
$ |
6,991 |
|
|
$ |
7,872,033 |
|
|
Consumer and other |
|
|
|
|
|
|
|
|
|
|
Fixed rate |
|
4,139 |
|
|
|
5,683 |
|
|
|
9 |
|
|
|
460 |
|
|
|
10,291 |
|
|
Variable rate |
|
40,830 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
40,830 |
|
|
Total consumer and other |
$ |
44,969 |
|
|
$ |
5,683 |
|
|
$ |
9 |
|
|
$ |
460 |
|
|
$ |
51,121 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Total per category |
|
|
|
|
|
|
|
|
|
|
Fixed rate |
|
7,819,650 |
|
|
|
6,228,438 |
|
|
|
2,177,762 |
|
|
|
1,144,655 |
|
|
|
17,370,505 |
|
|
Variable rate |
|
24,130,870 |
|
|
|
333,268 |
|
|
|
1,396,063 |
|
|
|
— |
|
|
|
25,860,201 |
|
|
Total loans, net of unearned income |
$ |
31,950,520 |
|
|
$ |
6,561,706 |
|
|
$ |
3,573,825 |
|
|
$ |
1,144,655 |
|
|
$ |
43,230,706 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Variable Rate Loan Pricing by Index: |
|
|
|
|
|
|
|
|
|
|
SOFR tenors |
|
|
|
|
|
|
|
|
$ |
14,880,310 |
|
|
One- year CMT |
|
|
|
|
|
|
|
|
|
6,112,917 |
|
|
Prime |
|
|
|
|
|
|
|
|
|
3,341,033 |
|
|
Fed Funds |
|
|
|
|
|
|
|
|
|
1,039,799 |
|
|
Ameribor tenors |
|
|
|
|
|
|
|
|
|
284,141 |
|
|
Other U.S. Treasury tenors |
|
|
|
|
|
|
|
|
|
124,941 |
|
|
Other |
|
|
|
|
|
|
|
|
|
77,060 |
|
|
Total variable rate |
|
|
|
|
|
|
|
|
$ |
25,860,201 |
|
SOFR - Secured Overnight Financing Rate.
CMT - Constant Maturity Treasury Rate.
Ameribor - American Interbank Offered Rate.
Graph available at the following link:
http://ml.globenewswire.com/Resource/Download/d1a58f1e-d3c0-4ab2-ba56-53947fd2c22b
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 $11.6 billion tied to one-month
SOFR and $6.1 billion tied to one-year CMT. The above chart
shows:
|
|
|
Basis Point (bp) Change in |
|
|
|
1-month
SOFR |
|
One- year CMT |
|
Prime |
|
|
First Quarter 2024 |
|
(2 |
) |
bps |
24 |
|
bps |
0 |
bps |
| Fourth
Quarter 2023 |
|
3 |
|
|
(67 |
) |
|
0 |
|
| Third
Quarter 2023 |
|
18 |
|
|
6 |
|
|
25 |
|
| Second
Quarter 2023 |
|
34 |
|
|
76 |
|
|
25 |
|
|
First Quarter 2023 |
|
44 |
|
|
(9 |
) |
|
50 |
|
TABLE 9: ALLOWANCE FOR CREDIT LOSSES
|
|
|
Three Months Ended |
|
|
|
Mar 31, |
|
Dec 31, |
|
Sep 30, |
|
Jun 30, |
|
Mar 31, |
|
(Dollars in thousands) |
|
|
2024 |
|
|
|
2023 |
|
|
|
2023 |
|
|
|
2023 |
|
|
|
2023 |
|
|
Allowance for credit losses at beginning of
period |
|
$ |
427,612 |
|
|
$ |
399,531 |
|
|
$ |
387,786 |
|
|
$ |
376,261 |
|
|
$ |
357,936 |
|
|
Cumulative effect adjustment from the adoption of ASU
2022-02 |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
741 |
|
|
Provision for credit losses |
|
|
21,673 |
|
|
|
42,908 |
|
|
|
19,923 |
|
|
|
28,514 |
|
|
|
23,045 |
|
|
Other adjustments |
|
|
(31 |
) |
|
|
62 |
|
|
|
(60 |
) |
|
|
41 |
|
|
|
4 |
|
|
Charge-offs: |
|
|
|
|
|
|
|
|
|
|
|
Commercial |
|
|
11,215 |
|
|
|
5,114 |
|
|
|
2,427 |
|
|
|
5,629 |
|
|
|
2,543 |
|
|
Commercial real estate |
|
|
5,469 |
|
|
|
5,386 |
|
|
|
1,713 |
|
|
|
8,124 |
|
|
|
5 |
|
| Home
equity |
|
|
74 |
|
|
|
— |
|
|
|
227 |
|
|
|
— |
|
|
|
— |
|
|
Residential real estate |
|
|
38 |
|
|
|
114 |
|
|
|
78 |
|
|
|
— |
|
|
|
— |
|
| Premium
finance receivables - property & casualty |
|
|
6,938 |
|
|
|
6,706 |
|
|
|
5,830 |
|
|
|
4,519 |
|
|
|
4,629 |
|
| Premium
finance receivables - life insurance |
|
|
— |
|
|
|
— |
|
|
|
18 |
|
|
|
134 |
|
|
|
21 |
|
| Consumer
and other |
|
|
107 |
|
|
|
148 |
|
|
|
184 |
|
|
|
110 |
|
|
|
153 |
|
|
Total charge-offs |
|
|
23,841 |
|
|
|
17,468 |
|
|
|
10,477 |
|
|
|
18,516 |
|
|
|
7,351 |
|
|
Recoveries: |
|
|
|
|
|
|
|
|
|
|
|
Commercial |
|
|
479 |
|
|
|
592 |
|
|
|
1,162 |
|
|
|
505 |
|
|
|
392 |
|
|
Commercial real estate |
|
|
31 |
|
|
|
92 |
|
|
|
243 |
|
|
|
25 |
|
|
|
100 |
|
| Home
equity |
|
|
29 |
|
|
|
34 |
|
|
|
33 |
|
|
|
37 |
|
|
|
35 |
|
|
Residential real estate |
|
|
2 |
|
|
|
10 |
|
|
|
1 |
|
|
|
6 |
|
|
|
4 |
|
| Premium
finance receivables - property & casualty |
|
|
1,519 |
|
|
|
1,820 |
|
|
|
906 |
|
|
|
890 |
|
|
|
1,314 |
|
| Premium
finance receivables - life insurance |
|
|
8 |
|
|
|
7 |
|
|
|
— |
|
|
|
— |
|
|
|
9 |
|
| Consumer
and other |
|
|
23 |
|
|
|
24 |
|
|
|
14 |
|
|
|
23 |
|
|
|
32 |
|
|
Total recoveries |
|
|
2,091 |
|
|
|
2,579 |
|
|
|
2,359 |
|
|
|
1,486 |
|
|
|
1,886 |
|
|
Net charge-offs |
|
|
(21,750 |
) |
|
|
(14,889 |
) |
|
|
(8,118 |
) |
|
|
(17,030 |
) |
|
|
(5,465 |
) |
|
Allowance for credit losses at period end |
|
$ |
427,504 |
|
|
$ |
427,612 |
|
|
$ |
399,531 |
|
|
$ |
387,786 |
|
|
$ |
376,261 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Annualized net charge-offs (recoveries) by category as a
percentage of its own respective
category’s average: |
|
Commercial |
|
|
0.33 |
% |
|
|
0.14 |
% |
|
|
0.04 |
% |
|
|
0.16 |
% |
|
|
0.07 |
% |
|
Commercial real estate |
|
|
0.19 |
|
|
|
0.19 |
|
|
|
0.05 |
|
|
|
0.31 |
|
|
|
0.00 |
|
| Home
equity |
|
|
0.05 |
|
|
|
(0.04 |
) |
|
|
0.23 |
|
|
|
(0.04 |
) |
|
|
(0.04 |
) |
|
Residential real estate |
|
|
0.01 |
|
|
|
0.02 |
|
|
|
0.01 |
|
|
|
0.00 |
|
|
|
0.00 |
|
| Premium
finance receivables - property & casualty |
|
|
0.32 |
|
|
|
0.29 |
|
|
|
0.29 |
|
|
|
0.24 |
|
|
|
0.23 |
|
| Premium
finance receivables - life insurance |
|
|
(0.00 |
) |
|
|
(0.00 |
) |
|
|
0.00 |
|
|
|
0.01 |
|
|
|
0.00 |
|
| Consumer
and other |
|
|
0.42 |
|
|
|
0.58 |
|
|
|
0.65 |
|
|
|
0.45 |
|
|
|
0.74 |
|
|
Total loans, net of unearned income |
|
|
0.21 |
% |
|
|
0.14 |
% |
|
|
0.08 |
% |
|
|
0.17 |
% |
|
|
0.06 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans at period end |
|
$ |
43,230,706 |
|
|
$ |
42,131,831 |
|
|
$ |
41,446,032 |
|
|
$ |
41,023,408 |
|
|
$ |
39,565,471 |
|
|
Allowance for loan losses as a percentage of loans at
period end |
|
|
0.81 |
% |
|
|
0.82 |
% |
|
|
0.76 |
% |
|
|
0.74 |
% |
|
|
0.73 |
% |
|
Allowance for loan and unfunded lending-related commitment
losses as a percentage of loans at period end |
|
|
0.99 |
|
|
|
1.01 |
|
|
|
0.96 |
|
|
|
0.94 |
|
|
|
0.95 |
|
TABLE 10:
ALLOWANCE AND PROVISION FOR CREDIT LOSSES BY
COMPONENT
|
|
|
Three Months Ended |
|
|
|
Mar 31, |
|
Dec 31, |
|
Sep 30, |
|
Jun 30, |
|
Mar 31, |
|
(In thousands) |
|
|
2024 |
|
|
|
2023 |
|
|
|
2023 |
|
|
|
2023 |
|
|
|
2023 |
|
|
Provision for loan losses |
|
$ |
26,159 |
|
|
$ |
44,023 |
|
|
$ |
20,717 |
|
|
$ |
31,516 |
|
|
$ |
22,520 |
|
|
Provision for unfunded lending-related commitments losses |
|
|
(4,468 |
) |
|
|
(1,081 |
) |
|
|
(769 |
) |
|
|
(2,945 |
) |
|
|
550 |
|
|
Provision for held-to-maturity securities losses |
|
|
(18 |
) |
|
|
(34 |
) |
|
|
(25 |
) |
|
|
(57 |
) |
|
|
(25 |
) |
|
Provision for credit losses |
|
$ |
21,673 |
|
|
$ |
42,908 |
|
|
$ |
19,923 |
|
|
$ |
28,514 |
|
|
$ |
23,045 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Allowance for loan losses |
|
$ |
348,612 |
|
|
$ |
344,235 |
|
|
$ |
315,039 |
|
|
$ |
302,499 |
|
|
$ |
287,972 |
|
|
Allowance for unfunded lending-related commitments losses |
|
|
78,563 |
|
|
|
83,030 |
|
|
|
84,111 |
|
|
|
84,881 |
|
|
|
87,826 |
|
|
Allowance for loan losses and unfunded lending-related commitments
losses |
|
|
427,175 |
|
|
|
427,265 |
|
|
|
399,150 |
|
|
|
387,380 |
|
|
|
375,798 |
|
|
Allowance for held-to-maturity securities losses |
|
|
329 |
|
|
|
347 |
|
|
|
381 |
|
|
|
406 |
|
|
|
463 |
|
|
Allowance for credit losses |
|
$ |
427,504 |
|
|
$ |
427,612 |
|
|
$ |
399,531 |
|
|
$ |
387,786 |
|
|
$ |
376,261 |
|
TABLE 11:
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
March 31, 2024, December 31, 2023 and September 30,
2023.
|
|
As of Mar 31, 2024 |
As of Dec 31, 2023 |
As of Sep 30, 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 |
$ |
13,503,481 |
|
$ |
166,518 |
|
1.23 |
% |
$ |
12,832,053 |
|
$ |
169,604 |
|
1.32 |
% |
$ |
12,725,473 |
|
$ |
151,488 |
|
1.19 |
% |
|
Commercial real estate: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Construction and development |
|
2,150,314 |
|
|
96,052 |
|
4.47 |
|
|
2,084,041 |
|
|
94,081 |
|
4.51 |
|
|
1,893,773 |
|
|
90,622 |
|
4.79 |
|
|
Non-construction |
|
9,483,123 |
|
|
130,000 |
|
1.37 |
|
|
9,260,123 |
|
|
129,772 |
|
1.40 |
|
|
9,052,407 |
|
|
125,096 |
|
1.38 |
|
|
Home equity |
|
340,349 |
|
|
7,191 |
|
2.11 |
|
|
343,976 |
|
|
7,116 |
|
2.07 |
|
|
343,258 |
|
|
7,080 |
|
2.06 |
|
|
Residential real estate |
|
2,890,266 |
|
|
13,701 |
|
0.47 |
|
|
2,769,666 |
|
|
13,133 |
|
0.47 |
|
|
2,707,603 |
|
|
12,659 |
|
0.47 |
|
|
Premium finance receivables |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Property and casualty insurance |
|
6,940,019 |
|
|
12,645 |
|
0.18 |
|
|
6,903,529 |
|
|
12,384 |
|
0.18 |
|
|
6,722,747 |
|
|
11,132 |
|
0.17 |
|
|
Life insurance |
|
7,872,033 |
|
|
685 |
|
0.01 |
|
|
7,877,943 |
|
|
685 |
|
0.01 |
|
|
7,931,808 |
|
|
688 |
|
0.01 |
|
|
Consumer and other |
|
51,121 |
|
|
383 |
|
0.75 |
|
|
60,500 |
|
|
490 |
|
0.81 |
|
|
68,963 |
|
|
385 |
|
0.56 |
|
|
Total loans, net of unearned income |
$ |
43,230,706 |
|
$ |
427,175 |
|
0.99 |
% |
$ |
42,131,831 |
|
$ |
427,265 |
|
1.01 |
% |
$ |
41,446,032 |
|
$ |
399,150 |
|
0.96 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total core loans (1) |
$ |
25,402,132 |
|
$ |
382,372 |
|
1.51 |
% |
$ |
24,592,729 |
|
$ |
380,847 |
|
1.55 |
% |
$ |
24,088,651 |
|
$ |
363,873 |
|
1.51 |
% |
|
Total niche loans (1) |
|
17,828,574 |
|
|
44,803 |
|
0.25 |
|
|
17,539,102 |
|
|
46,418 |
|
0.26 |
|
|
17,357,381 |
|
|
35,277 |
|
0.20 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) See Table 1
for additional detail on core and niche loans.
TABLE 12:
LOAN PORTFOLIO AGING
|
(In thousands) |
|
Mar 31, 2024 |
|
Dec 31, 2023 |
|
Sep 30, 2023 |
|
Jun 30, 2023 |
|
Mar 31, 2023 |
|
Loan Balances: |
|
|
|
|
|
|
|
|
|
|
|
Commercial |
|
|
|
|
|
|
|
|
|
|
|
Nonaccrual |
|
$ |
31,740 |
|
|
$ |
38,940 |
|
|
$ |
43,569 |
|
|
$ |
40,460 |
|
|
$ |
47,950 |
|
|
90+ days and still accruing |
|
|
27 |
|
|
|
98 |
|
|
|
200 |
|
|
|
573 |
|
|
|
— |
|
|
60-89 days past due |
|
|
30,248 |
|
|
|
19,488 |
|
|
|
22,889 |
|
|
|
22,808 |
|
|
|
10,755 |
|
|
30-59 days past due |
|
|
77,715 |
|
|
|
85,743 |
|
|
|
35,681 |
|
|
|
48,970 |
|
|
|
95,593 |
|
|
Current |
|
|
13,363,751 |
|
|
|
12,687,784 |
|
|
|
12,623,134 |
|
|
|
12,487,660 |
|
|
|
12,422,687 |
|
|
Total commercial |
|
$ |
13,503,481 |
|
|
$ |
12,832,053 |
|
|
$ |
12,725,473 |
|
|
$ |
12,600,471 |
|
|
$ |
12,576,985 |
|
|
Commercial real estate |
|
|
|
|
|
|
|
|
|
|
|
Nonaccrual |
|
$ |
39,262 |
|
|
$ |
35,459 |
|
|
$ |
17,043 |
|
|
$ |
18,483 |
|
|
$ |
11,196 |
|
|
90+ days and still accruing |
|
|
— |
|
|
|
— |
|
|
|
1,092 |
|
|
|
— |
|
|
|
— |
|
|
60-89 days past due |
|
|
16,713 |
|
|
|
8,515 |
|
|
|
7,395 |
|
|
|
1,054 |
|
|
|
20,539 |
|
|
30-59 days past due |
|
|
32,998 |
|
|
|
20,634 |
|
|
|
60,984 |
|
|
|
14,218 |
|
|
|
72,680 |
|
|
Current |
|
|
11,544,464 |
|
|
|
11,279,556 |
|
|
|
10,859,666 |
|
|
|
10,575,056 |
|
|
|
10,134,663 |
|
|
Total commercial real estate |
|
$ |
11,633,437 |
|
|
$ |
11,344,164 |
|
|
$ |
10,946,180 |
|
|
$ |
10,608,811 |
|
|
$ |
10,239,078 |
|
|
Home equity |
|
|
|
|
|
|
|
|
|
|
|
Nonaccrual |
|
$ |
838 |
|
|
$ |
1,341 |
|
|
$ |
1,363 |
|
|
$ |
1,361 |
|
|
$ |
1,190 |
|
|
90+ days and still accruing |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
110 |
|
|
|
— |
|
|
60-89 days past due |
|
|
212 |
|
|
|
62 |
|
|
|
219 |
|
|
|
316 |
|
|
|
116 |
|
|
30-59 days past due |
|
|
1,617 |
|
|
|
2,263 |
|
|
|
1,668 |
|
|
|
601 |
|
|
|
1,118 |
|
|
Current |
|
|
337,682 |
|
|
|
340,310 |
|
|
|
340,008 |
|
|
|
334,586 |
|
|
|
334,592 |
|
|
Total home equity |
|
$ |
340,349 |
|
|
$ |
343,976 |
|
|
$ |
343,258 |
|
|
$ |
336,974 |
|
|
$ |
337,016 |
|
|
Residential real estate |
|
|
|
|
|
|
|
|
|
|
|
Early buy-out loans guaranteed by U.S. government agencies
(1) |
|
$ |
143,350 |
|
|
$ |
150,583 |
|
|
$ |
168,973 |
|
|
$ |
187,848 |
|
|
$ |
196,152 |
|
|
Nonaccrual |
|
|
17,901 |
|
|
|
15,391 |
|
|
|
16,103 |
|
|
|
13,652 |
|
|
|
11,333 |
|
|
90+ days and still accruing |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
104 |
|
|
60-89 days past due |
|
|
— |
|
|
|
2,325 |
|
|
|
1,145 |
|
|
|
7,243 |
|
|
|
74 |
|
|
30-59 days past due |
|
|
24,523 |
|
|
|
22,942 |
|
|
|
904 |
|
|
|
872 |
|
|
|
19,183 |
|
|
Current |
|
|
2,704,492 |
|
|
|
2,578,425 |
|
|
|
2,520,478 |
|
|
|
2,433,625 |
|
|
|
2,278,699 |
|
|
Total residential real estate |
|
$ |
2,890,266 |
|
|
$ |
2,769,666 |
|
|
$ |
2,707,603 |
|
|
$ |
2,643,240 |
|
|
$ |
2,505,545 |
|
|
Premium finance receivables - property & casualty |
|
|
|
|
|
|
|
|
|
|
|
Nonaccrual |
|
$ |
32,648 |
|
|
$ |
27,590 |
|
|
$ |
26,756 |
|
|
$ |
19,583 |
|
|
$ |
18,543 |
|
|
90+ days and still accruing |
|
|
25,877 |
|
|
|
20,135 |
|
|
|
16,253 |
|
|
|
12,785 |
|
|
|
9,215 |
|
|
60-89 days past due |
|
|
15,274 |
|
|
|
23,236 |
|
|
|
16,552 |
|
|
|
22,670 |
|
|
|
14,287 |
|
|
30-59 days past due |
|
|
59,729 |
|
|
|
50,437 |
|
|
|
31,919 |
|
|
|
32,751 |
|
|
|
32,545 |
|
|
Current |
|
|
6,806,491 |
|
|
|
6,782,131 |
|
|
|
6,631,267 |
|
|
|
6,674,909 |
|
|
|
5,664,290 |
|
|
Total Premium finance receivables - property & casualty |
|
$ |
6,940,019 |
|
|
$ |
6,903,529 |
|
|
$ |
6,722,747 |
|
|
$ |
6,762,698 |
|
|
$ |
5,738,880 |
|
|
Premium finance receivables - life insurance |
|
|
|
|
|
|
|
|
|
|
|
Nonaccrual |
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
6 |
|
|
$ |
— |
|
|
90+ days and still accruing |
|
|
— |
|
|
|
— |
|
|
|
10,679 |
|
|
|
1,667 |
|
|
|
1,066 |
|
|
60-89 days past due |
|
|
32,482 |
|
|
|
16,206 |
|
|
|
41,894 |
|
|
|
3,729 |
|
|
|
21,552 |
|
|
30-59 days past due |
|
|
100,137 |
|
|
|
45,464 |
|
|
|
14,972 |
|
|
|
90,117 |
|
|
|
52,975 |
|
|
Current |
|
|
7,739,414 |
|
|
|
7,816,273 |
|
|
|
7,864,263 |
|
|
|
7,943,754 |
|
|
|
8,050,209 |
|
|
Total Premium finance receivables - life insurance |
|
$ |
7,872,033 |
|
|
$ |
7,877,943 |
|
|
$ |
7,931,808 |
|
|
$ |
8,039,273 |
|
|
$ |
8,125,802 |
|
|
Consumer and other |
|
|
|
|
|
|
|
|
|
|
|
Nonaccrual |
|
$ |
19 |
|
|
$ |
22 |
|
|
$ |
16 |
|
|
$ |
4 |
|
|
$ |
6 |
|
|
90+ days and still accruing |
|
|
47 |
|
|
|
54 |
|
|
|
27 |
|
|
|
28 |
|
|
|
87 |
|
|
60-89 days past due |
|
|
16 |
|
|
|
25 |
|
|
|
196 |
|
|
|
51 |
|
|
|
10 |
|
|
30-59 days past due |
|
|
210 |
|
|
|
165 |
|
|
|
519 |
|
|
|
146 |
|
|
|
379 |
|
|
Current |
|
|
50,829 |
|
|
|
60,234 |
|
|
|
68,205 |
|
|
|
31,712 |
|
|
|
41,683 |
|
|
Total consumer and other |
|
$ |
51,121 |
|
|
$ |
60,500 |
|
|
$ |
68,963 |
|
|
$ |
31,941 |
|
|
$ |
42,165 |
|
|
Total loans, net of unearned income |
|
|
|
|
|
|
|
|
|
|
|
Early buy-out loans guaranteed by U.S. government agencies
(1) |
|
$ |
143,350 |
|
|
$ |
150,583 |
|
|
$ |
168,973 |
|
|
$ |
187,848 |
|
|
$ |
196,152 |
|
|
Nonaccrual |
|
|
122,408 |
|
|
|
118,743 |
|
|
|
104,850 |
|
|
|
93,549 |
|
|
|
90,218 |
|
|
90+ days and still accruing |
|
|
25,951 |
|
|
|
20,287 |
|
|
|
28,251 |
|
|
|
15,163 |
|
|
|
10,472 |
|
|
60-89 days past due |
|
|
94,945 |
|
|
|
69,857 |
|
|
|
90,290 |
|
|
|
57,871 |
|
|
|
67,333 |
|
|
30-59 days past due |
|
|
296,929 |
|
|
|
227,648 |
|
|
|
146,647 |
|
|
|
187,675 |
|
|
|
274,473 |
|
|
Current |
|
|
42,547,123 |
|
|
|
41,544,713 |
|
|
|
40,907,021 |
|
|
|
40,481,302 |
|
|
|
38,926,823 |
|
|
Total loans, net of unearned income |
|
$ |
43,230,706 |
|
|
$ |
42,131,831 |
|
|
$ |
41,446,032 |
|
|
$ |
41,023,408 |
|
|
$ |
39,565,471 |
|
(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 13:
NON-PERFORMING
ASSETS(1)
|
|
Mar 31, |
|
Dec 31, |
|
Sep 30, |
|
Jun 30, |
|
Mar 31, |
|
(Dollars in thousands) |
|
2024 |
|
|
|
2023 |
|
|
|
2023 |
|
|
|
2023 |
|
|
|
2023 |
|
|
Loans past due greater than 90 days and still
accruing: |
|
|
|
|
|
|
|
|
|
|
Commercial |
$ |
27 |
|
|
$ |
98 |
|
|
$ |
200 |
|
|
$ |
573 |
|
|
$ |
— |
|
|
Commercial real estate |
|
— |
|
|
|
— |
|
|
|
1,092 |
|
|
|
— |
|
|
|
— |
|
| Home
equity |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
110 |
|
|
|
— |
|
|
Residential real estate |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
104 |
|
| Premium
finance receivables - property & casualty |
|
25,877 |
|
|
|
20,135 |
|
|
|
16,253 |
|
|
|
12,785 |
|
|
|
9,215 |
|
| Premium
finance receivables - life insurance |
|
— |
|
|
|
— |
|
|
|
10,679 |
|
|
|
1,667 |
|
|
|
1,066 |
|
| Consumer
and other |
|
47 |
|
|
|
54 |
|
|
|
27 |
|
|
|
28 |
|
|
|
87 |
|
|
Total loans past due greater than 90 days and still accruing |
|
25,951 |
|
|
|
20,287 |
|
|
|
28,251 |
|
|
|
15,163 |
|
|
|
10,472 |
|
|
Non-accrual loans: |
|
|
|
|
|
|
|
|
|
|
Commercial |
|
31,740 |
|
|
|
38,940 |
|
|
|
43,569 |
|
|
|
40,460 |
|
|
|
47,950 |
|
|
Commercial real estate |
|
39,262 |
|
|
|
35,459 |
|
|
|
17,043 |
|
|
|
18,483 |
|
|
|
11,196 |
|
| Home
equity |
|
838 |
|
|
|
1,341 |
|
|
|
1,363 |
|
|
|
1,361 |
|
|
|
1,190 |
|
|
Residential real estate |
|
17,901 |
|
|
|
15,391 |
|
|
|
16,103 |
|
|
|
13,652 |
|
|
|
11,333 |
|
| Premium
finance receivables - property & casualty |
|
32,648 |
|
|
|
27,590 |
|
|
|
26,756 |
|
|
|
19,583 |
|
|
|
18,543 |
|
| Premium
finance receivables - life insurance |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
6 |
|
|
|
— |
|
| Consumer
and other |
|
19 |
|
|
|
22 |
|
|
|
16 |
|
|
|
4 |
|
|
|
6 |
|
|
Total non-accrual loans |
|
122,408 |
|
|
|
118,743 |
|
|
|
104,850 |
|
|
|
93,549 |
|
|
|
90,218 |
|
|
Total non-performing loans: |
|
|
|
|
|
|
|
|
|
|
Commercial |
|
31,767 |
|
|
|
39,038 |
|
|
|
43,769 |
|
|
|
41,033 |
|
|
|
47,950 |
|
|
Commercial real estate |
|
39,262 |
|
|
|
35,459 |
|
|
|
18,135 |
|
|
|
18,483 |
|
|
|
11,196 |
|
| Home
equity |
|
838 |
|
|
|
1,341 |
|
|
|
1,363 |
|
|
|
1,471 |
|
|
|
1,190 |
|
|
Residential real estate |
|
17,901 |
|
|
|
15,391 |
|
|
|
16,103 |
|
|
|
13,652 |
|
|
|
11,437 |
|
| Premium
finance receivables - property & casualty |
|
58,525 |
|
|
|
47,725 |
|
|
|
43,009 |
|
|
|
32,368 |
|
|
|
27,758 |
|
| Premium
finance receivables - life insurance |
|
— |
|
|
|
— |
|
|
|
10,679 |
|
|
|
1,673 |
|
|
|
1,066 |
|
| Consumer
and other |
|
66 |
|
|
|
76 |
|
|
|
43 |
|
|
|
32 |
|
|
|
93 |
|
|
Total non-performing loans |
$ |
148,359 |
|
|
$ |
139,030 |
|
|
$ |
133,101 |
|
|
$ |
108,712 |
|
|
$ |
100,690 |
|
| Other
real estate owned |
|
14,538 |
|
|
|
13,309 |
|
|
|
14,060 |
|
|
|
11,586 |
|
|
|
9,361 |
|
|
Total non-performing assets |
$ |
162,897 |
|
|
$ |
152,339 |
|
|
$ |
147,161 |
|
|
$ |
120,298 |
|
|
$ |
110,051 |
|
|
Total non-performing loans by category as a percent of its
own respective category’s period-end balance: |
|
|
|
|
|
|
|
|
|
|
Commercial |
|
0.24 |
% |
|
|
0.30 |
% |
|
|
0.34 |
% |
|
|
0.33 |
% |
|
|
0.38 |
% |
|
Commercial real estate |
|
0.34 |
|
|
|
0.31 |
|
|
|
0.17 |
|
|
|
0.17 |
|
|
|
0.11 |
|
| Home
equity |
|
0.25 |
|
|
|
0.39 |
|
|
|
0.40 |
|
|
|
0.44 |
|
|
|
0.35 |
|
|
Residential real estate |
|
0.62 |
|
|
|
0.56 |
|
|
|
0.59 |
|
|
|
0.52 |
|
|
|
0.46 |
|
| Premium
finance receivables - property & casualty |
|
0.84 |
|
|
|
0.69 |
|
|
|
0.64 |
|
|
|
0.48 |
|
|
|
0.48 |
|
| Premium
finance receivables - life insurance |
|
— |
|
|
|
— |
|
|
|
0.13 |
|
|
|
0.02 |
|
|
|
0.01 |
|
| Consumer
and other |
|
0.13 |
|
|
|
0.13 |
|
|
|
0.06 |
|
|
|
0.10 |
|
|
|
0.22 |
|
|
Total loans, net of unearned income |
|
0.34 |
% |
|
|
0.33 |
% |
|
|
0.32 |
% |
|
|
0.26 |
% |
|
|
0.25 |
% |
|
Total non-performing assets as a percentage of total
assets |
|
0.28 |
% |
|
|
0.27 |
% |
|
|
0.26 |
% |
|
|
0.22 |
% |
|
|
0.21 |
% |
|
Allowance for loan losses and unfunded lending-related
commitments losses as a percentage of non-accrual
loans |
|
348.98 |
% |
|
|
359.82 |
% |
|
|
380.69 |
% |
|
|
414.09 |
% |
|
|
416.54 |
% |
|
|
|
|
|
|
|
|
|
|
|
(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 |
|
|
Mar 31, |
|
Dec 31, |
|
Sep 30, |
|
Jun 30, |
|
Mar 31, |
|
(In thousands) |
|
2024 |
|
|
|
2023 |
|
|
|
2023 |
|
|
|
2023 |
|
|
|
2023 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance at beginning of period |
$ |
139,030 |
|
|
$ |
133,101 |
|
|
$ |
108,712 |
|
|
$ |
100,690 |
|
|
$ |
100,697 |
|
|
Additions from becoming non-performing in the respective
period |
|
23,142 |
|
|
|
59,010 |
|
|
|
18,666 |
|
|
|
21,246 |
|
|
|
24,455 |
|
|
Return to performing status |
|
(490 |
) |
|
|
(24,469 |
) |
|
|
(1,702 |
) |
|
|
(360 |
) |
|
|
(480 |
) |
|
Payments received |
|
(8,336 |
) |
|
|
(10,000 |
) |
|
|
(6,488 |
) |
|
|
(12,314 |
) |
|
|
(5,261 |
) |
|
Transfer to OREO and other repossessed assets |
|
(1,381 |
) |
|
|
(2,623 |
) |
|
|
(2,671 |
) |
|
|
(2,958 |
) |
|
|
— |
|
|
Charge-offs, net |
|
(14,810 |
) |
|
|
(9,480 |
) |
|
|
(3,011 |
) |
|
|
(2,696 |
) |
|
|
(1,159 |
) |
|
Net change for niche loans (1) |
|
11,204 |
|
|
|
(6,509 |
) |
|
|
19,595 |
|
|
|
5,104 |
|
|
|
(17,562 |
) |
|
Balance at end of period |
$ |
148,359 |
|
|
$ |
139,030 |
|
|
$ |
133,101 |
|
|
$ |
108,712 |
|
|
$ |
100,690 |
|
(1) Includes activity for premium finance
receivables and indirect consumer loans.
Other Real Estate
Owned
|
|
Three Months Ended |
|
|
Mar 31, |
|
Dec 31, |
|
Sep 30, |
|
Jun 30, |
|
Mar 31, |
|
(In thousands) |
|
2024 |
|
|
|
2023 |
|
|
|
2023 |
|
|
|
2023 |
|
|
|
2023 |
|
| Balance
at beginning of period |
$ |
13,309 |
|
|
$ |
14,060 |
|
|
$ |
11,586 |
|
|
$ |
9,361 |
|
|
$ |
9,900 |
|
|
Disposals/resolved |
|
— |
|
|
|
(3,416 |
) |
|
|
(467 |
) |
|
|
(733 |
) |
|
|
(435 |
) |
|
Transfers in at fair value, less costs to sell |
|
1,436 |
|
|
|
2,665 |
|
|
|
2,941 |
|
|
|
2,958 |
|
|
|
— |
|
|
Fair value adjustments |
|
(207 |
) |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(104 |
) |
|
Balance at end of period |
$ |
14,538 |
|
|
$ |
13,309 |
|
|
$ |
14,060 |
|
|
$ |
11,586 |
|
|
$ |
9,361 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Period End |
|
|
Mar 31, |
|
Dec 31, |
|
Sep 30, |
|
Jun 30, |
|
Mar 31, |
|
Balance by Property Type: |
|
2024 |
|
|
|
2023 |
|
|
|
2023 |
|
|
|
2023 |
|
|
|
2023 |
|
|
Residential real estate |
$ |
720 |
|
|
$ |
720 |
|
|
$ |
441 |
|
|
$ |
318 |
|
|
$ |
1,051 |
|
|
Residential real estate development |
|
426 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
Commercial real estate |
|
13,392 |
|
|
|
12,589 |
|
|
|
13,619 |
|
|
|
11,268 |
|
|
|
8,310 |
|
|
Total |
$ |
14,538 |
|
|
$ |
13,309 |
|
|
$ |
14,060 |
|
|
$ |
11,586 |
|
|
$ |
9,361 |
|
TABLE 14:
NON-INTEREST INCOME
|
|
Three Months Ended |
|
Q1 2024 compared to
Q4 2023 |
|
Q1 2024 compared to
Q1 2023 |
|
|
Mar 31, |
|
Dec 31, |
|
Sep 30, |
|
Jun 30, |
|
Mar 31, |
|
|
|
(Dollars in thousands) |
|
2024 |
|
|
|
2023 |
|
|
|
2023 |
|
|
|
2023 |
|
|
2023 |
|
|
$ Change |
|
% Change |
|
$ Change |
|
% Change |
|
Brokerage |
$ |
5,556 |
|
|
$ |
5,349 |
|
|
$ |
4,359 |
|
|
$ |
4,404 |
|
$ |
4,533 |
|
|
$ |
207 |
|
|
4 |
% |
|
$ |
1,023 |
|
|
23 |
% |
|
Trust and asset management |
|
29,259 |
|
|
|
27,926 |
|
|
|
29,170 |
|
|
|
29,454 |
|
|
25,412 |
|
|
|
1,333 |
|
|
5 |
|
|
|
3,847 |
|
|
15 |
|
|
Total wealth management |
|
34,815 |
|
|
|
33,275 |
|
|
|
33,529 |
|
|
|
33,858 |
|
|
29,945 |
|
|
|
1,540 |
|
|
5 |
|
|
|
4,870 |
|
|
16 |
|
|
Mortgage banking |
|
27,663 |
|
|
|
7,433 |
|
|
|
27,395 |
|
|
|
29,981 |
|
|
18,264 |
|
|
|
20,230 |
|
|
NM |
|
|
9,399 |
|
|
51 |
|
|
Service charges on deposit accounts |
|
14,811 |
|
|
|
14,522 |
|
|
|
14,217 |
|
|
|
13,608 |
|
|
12,903 |
|
|
|
289 |
|
|
2 |
|
|
|
1,908 |
|
|
15 |
|
|
Gains (losses) on investment securities, net |
|
1,326 |
|
|
|
2,484 |
|
|
|
(2,357 |
) |
|
|
0 |
|
|
1,398 |
|
|
|
(1,158 |
) |
|
(47 |
) |
|
|
(72 |
) |
|
(5 |
) |
|
Fees from covered call options |
|
4,847 |
|
|
|
4,679 |
|
|
|
4,215 |
|
|
|
2,578 |
|
|
10,391 |
|
|
|
168 |
|
|
4 |
|
|
|
(5,544 |
) |
|
(53 |
) |
|
Trading gains (losses), net |
|
677 |
|
|
|
(505 |
) |
|
|
728 |
|
|
|
106 |
|
|
813 |
|
|
|
1,182 |
|
|
NM |
|
|
(136 |
) |
|
(17 |
) |
|
Operating lease income, net |
|
14,110 |
|
|
|
14,162 |
|
|
|
13,863 |
|
|
|
12,227 |
|
|
13,046 |
|
|
|
(52 |
) |
|
0 |
|
|
|
1,064 |
|
|
8 |
|
|
Other: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest rate swap fees |
|
2,828 |
|
|
|
4,021 |
|
|
|
2,913 |
|
|
|
2,711 |
|
|
2,606 |
|
|
|
(1,193 |
) |
|
(30 |
) |
|
|
222 |
|
|
9 |
|
|
BOLI |
|
1,651 |
|
|
|
1,747 |
|
|
|
729 |
|
|
|
1,322 |
|
|
1,351 |
|
|
|
(96 |
) |
|
(5 |
) |
|
|
300 |
|
|
22 |
|
|
Administrative services |
|
1,217 |
|
|
|
1,329 |
|
|
|
1,336 |
|
|
|
1,319 |
|
|
1,615 |
|
|
|
(112 |
) |
|
(8 |
) |
|
|
(398 |
) |
|
(25 |
) |
|
Foreign currency remeasurement (losses) gains |
|
(1,171 |
) |
|
|
1,150 |
|
|
|
(446 |
) |
|
|
543 |
|
|
(188 |
) |
|
|
(2,321 |
) |
|
NM |
|
|
(983 |
) |
|
NM |
|
Early pay-offs of capital leases |
|
430 |
|
|
|
157 |
|
|
|
461 |
|
|
|
201 |
|
|
365 |
|
|
|
273 |
|
|
NM |
|
|
65 |
|
|
18 |
|
|
Miscellaneous |
|
37,376 |
|
|
|
16,375 |
|
|
|
15,895 |
|
|
|
14,576 |
|
|
15,260 |
|
|
|
21,001 |
|
|
NM |
|
|
22,116 |
|
|
NM |
|
Total Other |
|
42,331 |
|
|
|
24,779 |
|
|
|
20,888 |
|
|
|
20,672 |
|
|
21,009 |
|
|
|
17,552 |
|
|
71 |
|
|
|
21,322 |
|
|
NM |
|
Total Non-Interest Income |
$ |
140,580 |
|
|
$ |
100,829 |
|
|
$ |
112,478 |
|
|
$ |
113,030 |
|
$ |
107,769 |
|
|
$ |
39,751 |
|
|
39 |
% |
|
$ |
32,811 |
|
|
30 |
% |
NM - Not meaningful.
BOLI - Bank-owned life insurance.
TABLE 15:
NON-INTEREST EXPENSE
|
|
Three Months Ended |
|
Q1 2024 compared to
Q4 2023 |
|
Q1 2024 compared to
Q1 2023 |
|
|
Mar 31, |
|
Dec 31, |
|
Sep 30, |
|
Jun 30, |
|
Mar 31, |
|
|
|
(Dollars in thousands) |
|
2024 |
|
|
2023 |
|
|
|
2023 |
|
|
2023 |
|
|
2023 |
|
|
$ Change |
|
% Change |
|
$ Change |
|
% Change |
| Salaries
and employee benefits: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Salaries |
$ |
112,172 |
|
$ |
111,484 |
|
|
$ |
111,303 |
|
$ |
107,671 |
|
$ |
108,354 |
|
|
$ |
688 |
|
|
1 |
% |
|
$ |
3,818 |
|
|
4 |
% |
|
Commissions and incentive compensation |
|
51,001 |
|
|
48,974 |
|
|
|
48,817 |
|
|
44,511 |
|
|
39,799 |
|
|
|
2,027 |
|
|
4 |
|
|
|
11,202 |
|
|
28 |
|
|
Benefits |
|
32,000 |
|
|
33,513 |
|
|
|
32,218 |
|
|
32,741 |
|
|
28,628 |
|
|
|
(1,513 |
) |
|
(5 |
) |
|
|
3,372 |
|
|
12 |
|
|
Total salaries and employee benefits |
|
195,173 |
|
|
193,971 |
|
|
|
192,338 |
|
|
184,923 |
|
|
176,781 |
|
|
|
1,202 |
|
|
1 |
|
|
|
18,392 |
|
|
10 |
|
| Software
and equipment |
|
27,731 |
|
|
27,779 |
|
|
|
25,951 |
|
|
26,205 |
|
|
24,697 |
|
|
|
(48 |
) |
|
0 |
|
|
|
3,034 |
|
|
12 |
|
| Operating
lease equipment |
|
10,683 |
|
|
10,694 |
|
|
|
12,020 |
|
|
9,816 |
|
|
9,833 |
|
|
|
(11 |
) |
|
0 |
|
|
|
850 |
|
|
9 |
|
|
Occupancy, net |
|
19,086 |
|
|
18,102 |
|
|
|
21,304 |
|
|
19,176 |
|
|
18,486 |
|
|
|
984 |
|
|
5 |
|
|
|
600 |
|
|
3 |
|
| Data
processing |
|
9,292 |
|
|
8,892 |
|
|
|
10,773 |
|
|
9,726 |
|
|
9,409 |
|
|
|
400 |
|
|
4 |
|
|
|
(117 |
) |
|
(1 |
) |
|
Advertising and marketing |
|
13,040 |
|
|
17,166 |
|
|
|
18,169 |
|
|
17,794 |
|
|
11,946 |
|
|
|
(4,126 |
) |
|
(24 |
) |
|
|
1,094 |
|
|
9 |
|
|
Professional fees |
|
9,553 |
|
|
8,768 |
|
|
|
8,887 |
|
|
8,940 |
|
|
8,163 |
|
|
|
785 |
|
|
9 |
|
|
|
1,390 |
|
|
17 |
|
|
Amortization of other acquisition-related intangible assets |
|
1,158 |
|
|
1,356 |
|
|
|
1,408 |
|
|
1,499 |
|
|
1,235 |
|
|
|
(198 |
) |
|
(15 |
) |
|
|
(77 |
) |
|
(6 |
) |
| FDIC
insurance |
|
9,381 |
|
|
9,303 |
|
|
|
9,748 |
|
|
9,008 |
|
|
8,669 |
|
|
|
78 |
|
|
1 |
|
|
|
712 |
|
|
8 |
|
| FDIC
insurance - special assessment |
|
5,156 |
|
|
34,374 |
|
|
|
— |
|
|
— |
|
|
— |
|
|
|
(29,218 |
) |
|
(85 |
) |
|
|
5,156 |
|
|
NM |
| OREO
expense, net |
|
392 |
|
|
(1,559 |
) |
|
|
120 |
|
|
118 |
|
|
(207 |
) |
|
|
1,951 |
|
|
NM |
|
|
599 |
|
|
NM |
|
Other: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Lending expenses, net of deferred origination costs |
|
5,078 |
|
|
5,330 |
|
|
|
4,777 |
|
|
7,890 |
|
|
3,099 |
|
|
|
(252 |
) |
|
(5 |
) |
|
|
1,979 |
|
|
64 |
|
|
Travel and entertainment |
|
4,597 |
|
|
5,754 |
|
|
|
5,449 |
|
|
5,401 |
|
|
4,590 |
|
|
|
(1,157 |
) |
|
(20 |
) |
|
|
7 |
|
|
0 |
|
|
Miscellaneous |
|
22,825 |
|
|
22,722 |
|
|
|
19,111 |
|
|
20,127 |
|
|
22,468 |
|
|
|
103 |
|
|
0 |
|
|
|
357 |
|
|
2 |
|
|
Total other |
|
32,500 |
|
|
33,806 |
|
|
|
29,337 |
|
|
33,418 |
|
|
30,157 |
|
|
|
(1,306 |
) |
|
(4 |
) |
|
|
2,343 |
|
|
8 |
|
|
Total Non-Interest Expense |
$ |
333,145 |
|
$ |
362,652 |
|
|
$ |
330,055 |
|
$ |
320,623 |
|
$ |
299,169 |
|
|
$ |
(29,507 |
) |
|
(8 |
)% |
|
$ |
33,976 |
|
|
11 |
% |
NM - Not meaningful.
TABLE 16:
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 |
|
|
Mar 31, |
|
Dec 31, |
|
Sep 30, |
|
Jun 30, |
|
Mar 31, |
|
(Dollars and shares in thousands) |
|
2024 |
|
|
|
2023 |
|
|
|
2023 |
|
|
|
2023 |
|
|
|
2023 |
|
|
Reconciliation of Non-GAAP Net Interest Margin and
Efficiency Ratio: |
|
(A) Interest Income (GAAP) |
$ |
805,513 |
|
|
$ |
793,848 |
|
|
$ |
762,400 |
|
|
$ |
697,176 |
|
|
$ |
639,690 |
|
|
Taxable-equivalent adjustment: |
|
|
|
|
|
|
|
|
|
|
- Loans |
|
2,246 |
|
|
|
2,150 |
|
|
|
1,923 |
|
|
|
1,882 |
|
|
|
1,872 |
|
|
- Liquidity Management Assets |
|
550 |
|
|
|
575 |
|
|
|
572 |
|
|
|
551 |
|
|
|
551 |
|
|
- Other Earning Assets |
|
5 |
|
|
|
4 |
|
|
|
1 |
|
|
|
1 |
|
|
|
4 |
|
|
(B) Interest Income (non-GAAP) |
$ |
808,314 |
|
|
$ |
796,577 |
|
|
$ |
764,896 |
|
|
$ |
699,610 |
|
|
$ |
642,117 |
|
|
(C) Interest Expense (GAAP) |
|
341,319 |
|
|
|
323,874 |
|
|
|
300,042 |
|
|
|
249,639 |
|
|
|
181,695 |
|
|
(D) Net Interest Income (GAAP) (A minus C) |
$ |
464,194 |
|
|
$ |
469,974 |
|
|
$ |
462,358 |
|
|
$ |
447,537 |
|
|
$ |
457,995 |
|
|
(E) Net Interest Income (non-GAAP) (B minus
C) |
$ |
466,995 |
|
|
$ |
472,703 |
|
|
$ |
464,854 |
|
|
$ |
449,971 |
|
|
$ |
460,422 |
|
|
Net interest margin (GAAP) |
|
3.57 |
% |
|
|
3.62 |
% |
|
|
3.60 |
% |
|
|
3.64 |
% |
|
|
3.81 |
% |
|
Net interest margin, fully taxable-equivalent
(non-GAAP) |
|
3.59 |
|
|
|
3.64 |
|
|
|
3.62 |
|
|
|
3.66 |
|
|
|
3.83 |
|
| (F)
Non-interest income |
$ |
140,580 |
|
|
$ |
100,829 |
|
|
$ |
112,478 |
|
|
$ |
113,030 |
|
|
$ |
107,769 |
|
| (G)
(Losses) gains on investment securities, net |
|
1,326 |
|
|
|
2,484 |
|
|
|
(2,357 |
) |
|
|
0 |
|
|
|
1,398 |
|
| (H)
Non-interest expense |
|
333,145 |
|
|
|
362,652 |
|
|
|
330,055 |
|
|
|
320,623 |
|
|
|
299,169 |
|
|
Efficiency ratio (H/(D+F-G)) |
|
55.21 |
% |
|
|
63.81 |
% |
|
|
57.18 |
% |
|
|
57.20 |
% |
|
|
53.01 |
% |
|
Efficiency ratio (non-GAAP) (H/(E+F-G)) |
|
54.95 |
|
|
|
63.51 |
|
|
|
56.94 |
|
|
|
56.95 |
|
|
|
52.78 |
|
|
|
Three Months Ended |
|
|
Mar 31, |
|
Dec 31, |
|
Sep 30, |
|
Jun 30, |
|
Mar 31, |
|
(Dollars and shares in thousands) |
|
2024 |
|
|
|
2023 |
|
|
|
2023 |
|
|
|
2023 |
|
|
|
2023 |
|
|
Reconciliation of Non-GAAP Tangible Common Equity
Ratio: |
| Total
shareholders’ equity (GAAP) |
$ |
5,436,400 |
|
|
$ |
5,399,526 |
|
|
$ |
5,015,613 |
|
|
$ |
5,041,912 |
|
|
$ |
5,015,506 |
|
| Less:
Non-convertible preferred stock (GAAP) |
|
(412,500 |
) |
|
|
(412,500 |
) |
|
|
(412,500 |
) |
|
|
(412,500 |
) |
|
|
(412,500 |
) |
| Less:
Intangible assets (GAAP) |
|
(677,911 |
) |
|
|
(679,561 |
) |
|
|
(680,353 |
) |
|
|
(682,327 |
) |
|
|
(674,538 |
) |
|
(I) Total tangible common shareholders’ equity (non-GAAP) |
$ |
4,345,989 |
|
|
$ |
4,307,465 |
|
|
$ |
3,922,760 |
|
|
$ |
3,947,085 |
|
|
$ |
3,928,468 |
|
| (J) Total
assets (GAAP) |
$ |
57,576,933 |
|
|
$ |
56,259,934 |
|
|
$ |
55,555,246 |
|
|
$ |
54,286,176 |
|
|
$ |
52,873,511 |
|
| Less:
Intangible assets (GAAP) |
|
(677,911 |
) |
|
|
(679,561 |
) |
|
|
(680,353 |
) |
|
|
(682,327 |
) |
|
|
(674,538 |
) |
|
(K) Total tangible assets (non-GAAP) |
$ |
56,899,022 |
|
|
$ |
55,580,373 |
|
|
$ |
54,874,893 |
|
|
$ |
53,603,849 |
|
|
$ |
52,198,973 |
|
|
Common equity to assets ratio (GAAP) (L/J) |
|
8.7 |
% |
|
|
8.9 |
% |
|
|
8.3 |
% |
|
|
8.5 |
% |
|
|
8.7 |
% |
|
Tangible common equity ratio (non-GAAP) (I/K) |
|
7.6 |
|
|
|
7.7 |
|
|
|
7.1 |
|
|
|
7.4 |
|
|
|
7.5 |
|
|
Reconciliation of Non-GAAP Tangible Book Value per Common
Share: |
|
Total shareholders’ equity |
$ |
5,436,400 |
|
|
$ |
5,399,526 |
|
|
$ |
5,015,613 |
|
|
$ |
5,041,912 |
|
|
$ |
5,015,506 |
|
| Less:
Preferred stock |
|
(412,500 |
) |
|
|
(412,500 |
) |
|
|
(412,500 |
) |
|
|
(412,500 |
) |
|
|
(412,500 |
) |
|
(L) Total common equity |
$ |
5,023,900 |
|
|
$ |
4,987,026 |
|
|
$ |
4,603,113 |
|
|
$ |
4,629,412 |
|
|
$ |
4,603,006 |
|
| (M)
Actual common shares outstanding |
|
61,737 |
|
|
|
61,244 |
|
|
|
61,222 |
|
|
|
61,198 |
|
|
|
61,176 |
|
|
Book value per common share (L/M) |
$ |
81.38 |
|
|
$ |
81.43 |
|
|
$ |
75.19 |
|
|
$ |
75.65 |
|
|
$ |
75.24 |
|
|
Tangible book value per common share (non-GAAP)
(I/M) |
|
70.40 |
|
|
|
70.33 |
|
|
|
64.07 |
|
|
|
64.50 |
|
|
|
64.22 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of Non-GAAP Return on Average Tangible
Common Equity: |
| (N) Net
income applicable to common shares |
$ |
180,303 |
|
|
$ |
116,489 |
|
|
$ |
157,207 |
|
|
$ |
147,759 |
|
|
$ |
173,207 |
|
| Add:
Intangible asset amortization |
|
1,158 |
|
|
|
1,356 |
|
|
|
1,408 |
|
|
|
1,499 |
|
|
|
1,235 |
|
| Less: Tax
effect of intangible asset amortization |
|
(291 |
) |
|
|
(343 |
) |
|
|
(380 |
) |
|
|
(402 |
) |
|
|
(321 |
) |
|
After-tax intangible asset amortization |
$ |
867 |
|
|
$ |
1,013 |
|
|
$ |
1,028 |
|
|
$ |
1,097 |
|
|
$ |
914 |
|
|
(O) Tangible net income applicable to common shares (non-GAAP) |
$ |
181,170 |
|
|
$ |
117,502 |
|
|
$ |
158,235 |
|
|
$ |
148,856 |
|
|
$ |
174,121 |
|
| Total
average shareholders’ equity |
$ |
5,440,457 |
|
|
$ |
5,066,196 |
|
|
$ |
5,083,883 |
|
|
$ |
5,044,718 |
|
|
$ |
4,895,271 |
|
| Less:
Average preferred stock |
|
(412,500 |
) |
|
|
(412,500 |
) |
|
|
(412,500 |
) |
|
|
(412,500 |
) |
|
|
(412,500 |
) |
|
(P) Total average common shareholders’ equity |
$ |
5,027,957 |
|
|
$ |
4,653,696 |
|
|
$ |
4,671,383 |
|
|
$ |
4,632,218 |
|
|
$ |
4,482,771 |
|
|
Less: Average intangible assets |
|
(678,731 |
) |
|
|
(679,812 |
) |
|
|
(681,520 |
) |
|
|
(682,561 |
) |
|
|
(675,247 |
) |
|
(Q) Total average tangible common shareholders’ equity
(non-GAAP) |
$ |
4,349,226 |
|
|
$ |
3,973,884 |
|
|
$ |
3,989,863 |
|
|
$ |
3,949,657 |
|
|
$ |
3,807,524 |
|
|
Return on average common equity, annualized
(N/P) |
|
14.42 |
% |
|
|
9.93 |
% |
|
|
13.35 |
% |
|
|
12.79 |
% |
|
|
15.67 |
% |
|
Return on average tangible common equity, annualized
(non-GAAP) (O/Q) |
|
16.75 |
|
|
|
11.73 |
|
|
|
15.73 |
|
|
|
15.12 |
|
|
|
18.55 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of Non-GAAP Pre-Tax, Pre-Provision
Income: |
|
|
| Income
before taxes |
$ |
249,956 |
|
|
$ |
165,243 |
|
|
$ |
224,858 |
|
|
$ |
211,430 |
|
|
$ |
243,550 |
|
| Add:
Provision for credit losses |
|
21,673 |
|
|
|
42,908 |
|
|
|
19,923 |
|
|
|
28,514 |
|
|
|
23,045 |
|
|
Pre-tax income, excluding provision for credit losses
(non-GAAP) |
$ |
271,629 |
|
|
$ |
208,151 |
|
|
$ |
244,781 |
|
|
$ |
239,944 |
|
|
$ |
266,595 |
|
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, Hawthorn Woods, 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
Indiana in Crown Point and Dyer.
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 2023
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, 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, the Company’s business and growth
strategies, including future acquisitions of banks, specialty
finance or wealth management businesses, internal growth and plans
to form additional de novo banks or branch offices. Actual results
could differ materially from those addressed in the forward-looking
statements as a result of numerous factors, including the
following:
- 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 losses,
difficulties or developments related to 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, or those of third parties, 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 impact of the Company’s
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
Thursday, April 18, 2024 at 10:00 a.m. (CDT) regarding first
quarter 2024 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 March 28, 2024 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
first quarter 2024 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
Wintrust Financial (NASDAQ:WTFC)
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