ROSEMONT, Ill., Jan. 18, 2023 (GLOBE NEWSWIRE) -- Wintrust Financial Corporation ("Wintrust", "the Company", "we" or "our") (Nasdaq: WTFC) announced net income of $144.8 million or $2.23 per diluted common share for the fourth quarter of 2022, an increase in diluted earnings per common share of 1% compared to the third quarter of 2022. The Company had record annual net income of $509.7 million or $8.02 per diluted common share for the year ended December 31, 2022 as compared to net income of $466.2 million or $7.58 per diluted common share for the same period of 2021. Pre-tax, pre-provision income (non-GAAP) totaled a record $779.1 million for the year ended December 31, 2022, up 35% as compared to $578.5 million for the same period of 2021.
Edward J. Wehmer, Founder and Chief Executive Officer, commented, "Wintrust finished the year with great momentum as our fourth quarter results were highlighted by strong net income and record quarterly pre-tax, pre-provision income. Net interest income and net interest margin expanded meaningfully and our loan portfolio continued to grow while exhibiting low levels of net charge-offs. The fourth quarter caps an extraordinary year for Wintrust, and we believe that we are well-positioned to reach even higher levels of financial performance in 2023."
Highlights of the fourth quarter of 2022:
Comparative information to the third quarter of 2022, unless otherwise noted
- Net interest income increased by $55.4 million or 14% as compared to the third quarter of 2022 primarily due to improvement in net interest margin and loan growth.
- Net interest margin, on a GAAP basis, increased by 37 basis points to 3.71% for the fourth quarter of 2022 as the upward repricing of earning assets outpaced increases in deposit costs. Net interest margin, on a fully taxable equivalent basis (non-GAAP) increased by 38 basis points to 3.73%.
- Total loans increased by $1.0 billion, or 11% on an annualized basis. In addition, total loans as of December 31, 2022 were $630 million higher than average total loans in the fourth quarter of 2022 which is expected to benefit future quarters.
- Total assets increased by $567 million totaling $52.9 billion as of December 31, 2022 and total deposits increased by $105 million.
- Recorded a provision for credit losses of $47.6 million in the fourth quarter of 2022 primarily related to a moderate deterioration in macroeconomic factors coupled with strong loan growth. This compares to a provision for credit losses of $6.4 million in the third quarter of 2022.
- Net charge-offs totaled $5.1 million or five basis points of average total loans on an annualized basis in the fourth quarter of 2022 as compared to $3.2 million or three basis points of average total loans on an annualized basis in the third quarter of 2022.
- Non-performing loans were essentially unchanged at 0.26% of total loans, as of December 31, 2022. See "Asset Quality" section for more information.
- Book value per common share increased by $2.56 to $72.12 as of December 31, 2022. Tangible book value per common share (non-GAAP) increased to $61.00 as of December 31, 2022 as compared to $58.42 as of September 30, 2022.
Other items of note from the fourth quarter of 2022
- Net losses on investment securities totaled $6.7 million in the fourth quarter of 2022 related to changes in the value of equity securities as compared to net losses of $3.1 million in the third quarter of 2022.
- The effective tax rate decreased as the Company recorded an approximately $1.7 million benefit to income tax expense related to earnings at its Canadian subsidiary. See "Income Taxes" section for more information.
- Recorded $838,000 in occupancy expense related to an unrealized loss associated with the anticipated sale of a branch facility.
- Recorded $846,000 in operating lease equipment expense related to the impairment of an operating lease asset.
- The Company recorded net negative fair value adjustments of $702,000 in the fourth quarter of 2022 related to fair value changes in certain mortgage assets, see "Non-Interest Income" section for more information.
Mr. Wehmer continued, "The Company experienced robust loan growth as loans increased by $1.0 billion, or 11% on an annualized basis, in the fourth quarter of 2022. The loan growth was spread across all of our material loan portfolios as we experienced growth in commercial, commercial real estate, commercial insurance premium finance receivables and life insurance premium finance receivables. We remain prudent in our review of credit prospects ensuring our loan growth stays within our conservative credit standards. Loan growth in the fourth quarter of 2022 outpaced deposit growth which resulted in our loans to deposits ratio ending the quarter at 91.4%. Strategically growing deposits is among our most important objectives in 2023 and we believe we are well positioned to accomplish that without compromising our net interest margin guidance."
Mr. Wehmer commented, "Net interest income increased by $55.4 million in the fourth quarter of 2022 primarily due to improvement in net interest margin as well as an increase in earning assets. Net interest margin, on a fully taxable equivalent basis (non-GAAP), increased by 38 basis points as the upward repricing of earning assets outpaced deposit rate changes. We expect that trend to continue and believe, subject to no material change in the consensus projection of interest rates as of this release date, that our net interest margin should approach 4.00% during the first quarter of 2023. While Wintrust benefited significantly from being asset sensitive to interest rates in 2022, we acknowledge the uncertainty in projected interest rates and are repositioning our balance sheet to reduce our interest rate sensitivity. We expect to continue this strategy, including the use of derivative instruments, in order to mitigate potential negative impacts to our net interest margin in a declining interest rate environment."
Commenting on credit quality, Mr. Wehmer stated, "The allowance for credit losses totaled $357.9 million as of December 31, 2022, an increase of $42.6 million as compared to $315.3 million as of September 30, 2022. The $42.6 million increase in reserves consisted of a $32.2 million increase related to a moderate deterioration in macroeconomic factors and a $10.4 million increase related to portfolio changes in the fourth quarter of 2022. Meanwhile, credit metrics related to current loan performance remained relatively stable. Non-performing loans totaled $100.7 million and comprised only 0.26% of total loans as of December 31, 2022, essentially unchanged from levels as of September 30, 2022. Net charge-offs totaled $5.1 million or five basis points of average total loans on an annualized basis in the fourth quarter of 2022 as compared to $3.2 million or three basis points of average total loans on an annualized basis in the third quarter of 2022. The allowance for credit losses on our core loan portfolio as of December 31, 2022 is approximately 1.42% of the outstanding balance. We believe that the Company's reserves remain appropriate and we remain diligent in our review of credit."
Mr. Wehmer concluded, "Our fourth quarter of 2022 results continued to demonstrate the multi-faceted nature of our business model which we believe uniquely positions us to be successful. We remain an asset driven organization, focused on prudently growing our loan portfolio. We are confident we can raise funding to support asset growth and drive further net interest income expansion. We are closely watching our expenses and believe our efficiency ratio will continue to improve. We are opportunistically evaluating the acquisition market for both banks and business lines of various sizes and are excited about our recently announced and pending wealth management acquisition. Of course, we remain diligent in our consideration of acquisition targets and intend to be prudent in our decision making, always seeking to minimize tangible book value dilution. We are very proud that Wintrust's tangible book value per common share has increased every year since we became a public company in 1996 and you can be assured of our best efforts to maintain that trend in 2023 and beyond."
The graphs below illustrate certain financial highlights of the fourth quarter of 2022 as well as historical financial performance. See "Supplemental Non-GAAP Financial Measures/Ratios" at Table 17 for additional information with respect to non-GAAP financial measures/ratios, including the reconciliations to the corresponding GAAP financial measures/ratios.
Graphs available at the following link:
http://ml.globenewswire.com/Resource/Download/b70f58b8-5524-4ca3-8936-f89104accc4a
SUMMARY OF RESULTS:
BALANCE SHEET
Total loans increased by $1.0 billion as core loans increased by $794 million and niche loans increased by $250 million as compared to the third quarter of 2022. See Table 1 for more information. During the fourth quarter of 2022, the Company increased its investment portfolio by approximately $1.5 billion. However, certain securities were called by option holders on December 31, 2022 which resulted in the recognition of a trade date receivable of $922 million as of December 31, 2022. In January 2023, the Company reinvested the trade date receivable proceeds by purchasing a similar amount of investment securities.
Total liabilities increased $408 million in the fourth quarter of 2022 as compared to the third quarter of 2022 resulting primarily from a $136 million increase in notes payable and a $105 million increase in total deposits. The Company's loans to deposits ratio ended the quarter at 91.4%. Management believes in substantially funding the Company's balance sheet with core deposits and utilizes brokered or wholesale funding sources on a limited basis to manage its liquidity position as well as for interest rate risk management purposes.
For more information regarding changes in the Company's balance sheet, see Consolidated Statements of Condition and Table 1 through Table 3 in this report.
NET INTEREST INCOME
For the fourth quarter of 2022, net interest income totaled $456.8 million, an increase of $55.4 million as compared to the third quarter of 2022. The $55.4 million increase in net interest income in the fourth quarter of 2022 compared to the third quarter of 2022 was primarily due to robust loan growth and continued expansion of net interest margin.
Net interest margin was 3.71% (3.73% on a fully taxable-equivalent basis, non-GAAP) during the fourth quarter of 2022 compared to 3.34% (3.35% on a fully taxable-equivalent basis, non-GAAP) during the third quarter of 2022. The net interest margin increase as compared to the third quarter of 2022 was due to an 84 basis point increase in yield on earning assets and a 22 basis point increase in the net free funds contribution. These improvements were partially offset by a 68 basis point increase in the rate paid on interest-bearing liabilities. The 84 basis point increase in the yield on earning assets in the fourth quarter of 2022 as compared to the third quarter of 2022 was primarily due to an 87 basis point expansion on loan yields and a higher liquidity management asset yield as the Company earned higher yields on interest-bearing deposits with banks and added investment securities at higher current market rates. The 68 basis point increase in the rate paid on interest-bearing liabilities in the fourth quarter of 2022 as compared to the third quarter of 2022 is primarily due to a 66 basis point increase in the rate paid on interest-bearing deposits primarily related to the increasing rate environment.
For more information regarding net interest income, see Table 4 through Table 8 in this report.
ASSET QUALITY
The allowance for credit losses totaled $357.9 million as of December 31, 2022, an increase of $42.6 million as compared to $315.3 million as of September 30, 2022. The $42.6 million increase in reserves consisted of a $32.2 million increase related to a moderate deterioration in macroeconomic factors and a $10.4 million increase related to portfolio changes in the fourth quarter of 2022. A provision for credit losses totaling $47.6 million was recorded for the fourth quarter of 2022 as compared to $6.4 million recorded in the third quarter of 2022. For more information regarding the provision for credit losses, see Table 11 in this report.
Management believes the allowance for credit losses is appropriate to account for expected credit losses. The Current Expected Credit Losses ("CECL") accounting standard requires the Company to estimate expected credit losses over the life of the Company's financial assets as of the reporting date. There can be no assurances, however, that future losses will not significantly exceed the amounts provided for, thereby affecting future results of operations. A summary of the allowance for credit losses calculated for the loan components in each portfolio as of December 31, 2022, September 30, 2022, and June 30, 2022 is shown on Table 12 of this report.
Net charge-offs totaled $5.1 million in the fourth quarter of 2022, as compared to $3.2 million of net charge-offs in the third quarter of 2022. Net charge-offs as a percentage of average total loans were reported as five basis points in the fourth quarter of 2022 on an annualized basis compared to three basis points on an annualized basis in the third quarter of 2022. For more information regarding net charge-offs, see Table 10 in this report.
The Company's delinquency rates remain low and manageable. For more information regarding past due loans, see Table 13 in this report.
The ratio of non-performing assets to total assets was 0.21% as of December 31, 2022, compared to 0.20% at September 30, 2022. Non-performing assets totaled $110.6 million at December 31, 2022, compared to $104.3 million at September 30, 2022. Non-performing loans remained relatively flat totaling $100.7 million, or 0.26% of total loans, at December 31, 2022 compared to $97.6 million, or 0.26% of total loans, at September 30, 2022. For more information regarding non-performing assets, see Table 14 in this report.
NON-INTEREST INCOME
Wealth management revenue decreased $2.4 million in the fourth quarter of 2022 as compared to the third quarter of 2022 primarily related to lower fees associated with our tax-deferred like-kind exchange business. Wealth management revenue is comprised of the trust and asset management revenue of The Chicago Trust Company and Great Lakes Advisors, the brokerage commissions, managed money fees and insurance product commissions at Wintrust Investments and fees from tax-deferred like-kind exchange services provided by the Chicago Deferred Exchange Company.
Mortgage banking revenue decreased by $9.8 million in the fourth quarter of 2022 as compared to the third quarter of 2022 primarily due to lower production revenue as a result of declining mortgage origination volume in the recent rising rate environment as well as lower production margins. The Company recorded net negative fair value adjustments of $702,000 in the fourth quarter of 2022 related to fair value changes in certain mortgage assets. This included a $2.1 million decrease in the value of mortgage servicing rights related to changes in fair value model assumptions net of economic hedges and a positive $1.4 million valuation related adjustment on the Company's held-for-sale portfolio of early buy-out exercised loans guaranteed by U.S. government agencies which are held at fair value. The Company intends to monitor the relationship of these assets and will seek to minimize the earnings impact of fair value changes in future quarters.
Net losses on investment securities totaled $6.7 million in the fourth quarter of 2022 related to changes in the value of equity securities as compared to net losses of $3.1 million in the third quarter of 2022.
Fees from covered call options increased $6.6 million in the fourth quarter of 2022 as compared to the third quarter of 2022. The Company has typically written call options with terms of less than three months against certain U.S. Treasury and agency securities held in its portfolio for liquidity and other purposes. Management has entered into these transactions with the goal of economically hedging security positions and enhancing its overall return on its investment portfolio. These option transactions are designed to mitigate overall interest rate risk and do not qualify as hedges pursuant to accounting guidance.
For more information regarding non-interest income, see Table 15 in this report.
NON-INTEREST EXPENSE
Salaries and employee benefits expense increased by $4.2 million in the fourth quarter of 2022 as compared to the third quarter of 2022. The $4.2 million increase is primarily related to higher incentive compensation expense related to the Company's strong 2022 financial performance, increased employee insurance costs and higher levels of deferred compensation expense, partially offset by lower commissions expense primarily related to lower mortgage production volume.
Advertising and marketing expenses in the fourth quarter of 2022 totaled $14.3 million, which is a $2.3 million decrease as compared to the third quarter of 2022 primarily due to a decrease in sports sponsorships. Marketing costs are incurred to promote the Company's brand, commercial banking capabilities and the Company's various products, to attract loans and deposits and to announce new branch openings as well as the expansion of the Company's non-bank businesses. The level of marketing expenditures depends on the timing of sponsorship programs utilized which are determined based on the market area, targeted audience, competition and various other factors.
Miscellaneous expense increased by $4.8 million in the fourth quarter of 2022 as compared to the third quarter of 2022 which includes a $1.1 million increase in charitable donations. In addition, miscellaneous expense includes ATM expenses, correspondent bank charges, directors fees, telephone, postage, corporate insurance, dues and subscriptions, problem loan expenses and other miscellaneous operational losses and costs.
For more information regarding non-interest expense, see Table 16 in this report.
INCOME TAXES
The Company recorded income tax expense of $50.4 million in the fourth quarter of 2022 compared to $57.1 million in the third quarter of 2022. The effective tax rates were 25.80% in the fourth quarter of 2022 compared to 28.53% in the third quarter of 2022. Primarily as a result of fluctuations in currency rates, in the fourth quarter of 2022, the Company reversed approximately $1.7 million of the $2.0 million of tax expense related to GILTI ("Global Intangible Low-taxed Income") recorded in the third quarter of 2022. The GILTI tax is a U.S. minimum tax on global profits.
BUSINESS UNIT SUMMARY
Community Banking
Through its community banking unit, the Company provides banking and financial services primarily to individuals, small to mid-sized businesses, local governmental units and institutional clients residing primarily in the local areas the Company services. In the fourth quarter of 2022, this unit expanded its loan portfolio. The segment's net interest income increased in the fourth quarter of 2022 as compared to the third quarter of 2022 due to loan growth and an increased net interest margin.
Mortgage banking revenue was $17.4 million for the fourth quarter of 2022, a decrease of $9.8 million as compared to the third quarter of 2022, primarily due to lower production revenue as a result of declining mortgage origination volume in the current rising rate environment as well as lower production margins. Service charges on deposit accounts totaled $13.1 million in the fourth quarter of 2022, a decrease of $1.3 million as compared to the third quarter of 2022 primarily due to lower fees associated with commercial account activity. The Company's gross commercial and commercial real estate loan pipelines remained robust as of December 31, 2022 indicating momentum for expected continued loan growth in the first quarter of 2023.
Specialty Finance
Through its specialty finance unit, the Company offers financing of insurance premiums for businesses and individuals, equipment financing through structured loans and lease products to customers in a variety of industries, accounts receivable financing and value-added, out-sourced administrative services and other services. Originations within the insurance premium financing receivables portfolio were $4.0 billion during the fourth quarter of 2022 and average balances increased by $396.1 million as compared to the third quarter of 2022. The Company's leasing portfolio balance increased in the fourth quarter of 2022, with its portfolio of assets, including capital leases, loans and equipment on operating leases, totaling $3.0 billion as of December 31, 2022 as compared to $2.7 billion as of September 30, 2022. Revenues from the Company's out-sourced administrative services business were $1.7 million in the fourth quarter of 2022, an increase of $203,000 from the third quarter of 2022.
Wealth Management
Through four separate subsidiaries within its wealth management unit, the Company offers a full range of wealth management services, including trust and investment services, tax-deferred like-kind exchange services, asset management, securities brokerage services and 401(k) and retirement plan services. Wealth management revenue totaled $30.7 million in the fourth quarter of 2022, a decrease of $2.4 million compared to the third quarter of 2022. The decline in wealth management revenue in the fourth quarter of 2022 was primarily related to lower fees associated with our tax-deferred like-kind exchange business. At December 31, 2022, the Company's wealth management subsidiaries had approximately $34.4 billion of assets under administration, which included $7.4 billion of assets owned by the Company and its subsidiary banks, representing an increase from the $32.8 billion of assets under administration at September 30, 2022.
ITEMS IMPACTING COMPARATIVE FINANCIAL RESULTS
Common Stock Offering
In June 2022, the Company sold through a public offering a total of 3,450,000 shares of its common stock. Net proceeds to the Company totaled approximately $285.7 million, net of estimated issuance costs.
Insurance Agency Loan Portfolio
On November 15, 2021, the Company completed its acquisition of certain assets from The Allstate Corporation ("Allstate"). Through this business combination, the Company acquired approximately $581.6 million of loans, net of allowance for credit losses measured on the acquisition date. The loan portfolio was comprised of approximately 1,800 loans to Allstate agents nationally. In addition to acquiring the loans, the Company became the national preferred provider of loans to Allstate agents. In connection with the loan acquisition, a team of Allstate agency lending specialists joined the Company, to augment and expand Wintrust's existing insurance agency finance business. As the transaction was determined to be a business combination, the Company recorded goodwill of approximately $9.3 million on the purchase.
WINTRUST FINANCIAL CORPORATION
Key Operating Measures
Wintrust's key operating measures and growth rates for the fourth quarter of 2022, as compared to the third quarter of 2022 (sequential quarter) and fourth quarter of 2021 (linked quarter), are shown in the table below:
| % or(1) basis point (bp) change from 3rd Quarter 2022 | % or basis point (bp) change from 4th Quarter 2021 | |||||||||||||||||
| Three Months Ended | ||||||||||||||||||
| (Dollars in thousands, except per share data) | Dec 31, 2022 | Sep 30, 2022 | Dec 31, 2021 | |||||||||||||||
| Net income | $ | 144,817 | $ | 142,961 | $ | 98,757 | 1 | % | 47 | % | ||||||||
| Pre-tax income, excluding provision for credit losses (non-GAAP)(2) | 242,819 | 206,461 | 146,344 | 18 | 66 | |||||||||||||
| Net income per common share - diluted | 2.23 | 2.21 | 1.58 | 1 | 41 | |||||||||||||
| Cash dividends declared per common share | 0.34 | 0.34 | 0.31 | - | 10 | |||||||||||||
| Net revenue(3) | 550,655 | 502,930 | 429,743 | 9 | 28 | |||||||||||||
| Net interest income | 456,816 | 401,448 | 295,976 | 14 | 54 | |||||||||||||
| Net interest margin | 3.71 | % | 3.34 | % | 2.54 | % | 37 | bps | 117 | bps | ||||||||
| Net interest margin - fully taxable-equivalent (non-GAAP)(2) | 3.73 | 3.35 | 2.55 | 38 | 118 | |||||||||||||
| Net overhead ratio(4) | 1.63 | 1.53 | 1.21 | 10 | 42 | |||||||||||||
| Return on average assets | 1.10 | 1.12 | 0.80 | (2 | ) | 30 | ||||||||||||
| Return on average common equity | 12.72 | 12.31 | 9.05 | 41 | 367 | |||||||||||||
| Return on average tangible common equity (non-GAAP)(2) | 15.21 | 14.68 | 11.04 | 53 | 417 | |||||||||||||
| At end of period | ||||||||||||||||||
| Total assets | $ | 52,949,649 | $ | 52,382,939 | $ | 50,142,143 | 4 | % | 6 | % | ||||||||
| Total loans(5) | 39,196,485 | 38,167,613 | 34,789,104 | 11 | 13 | |||||||||||||
| Total deposits | 42,902,544 | 42,797,191 | 42,095,585 | 1 | 2 | |||||||||||||
| Total shareholders' equity | 4,796,838 | 4,637,980 | 4,498,688 | 14 | 7 | |||||||||||||
(1)Period-end balance sheet percentage changes are annualized.
(2)See Table 17: Supplemental Non-GAAP Financial Measures/Ratios for additional information on this performance measure/ratio.
(3)Net revenue is net interest income plus non-interest income.
(4)The net overhead ratio is calculated by netting total non-interest expense and total non-interest income, annualizing this amount, and dividing by that period's average total assets. A lower ratio indicates a higher degree of efficiency.
(5)Excludes mortgage loans held-for-sale.
Certain returns, yields, performance ratios, or quarterly growth rates are "annualized" in this presentation to represent an annual time period. This is done for analytical purposes to better discern, for decision-making purposes, underlying performance trends when compared to full-year or year-over-year amounts. For example, a 5% growth rate for a quarter would represent an annualized 20% growth rate. Additional supplemental financial information showing quarterly trends can be found on the Company's website at www.wintrust.com by choosing "Financial Reports" under the "Investor Relations" heading, and then choosing "Financial Highlights."
WINTRUST FINANCIAL CORPORATION
Selected Financial Highlights
| Three Months Ended | Years Ended | ||||||||||||||||||||||||||
| (Dollars in thousands, except per share data) | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Dec 31, 2022 | Dec 31, 2021 | ||||||||||||||||||||
| Selected Financial Condition Data (at end of period): | |||||||||||||||||||||||||||
| Total assets | $ | 52,949,649 | $ | 52,382,939 | $ | 50,969,332 | $ | 50,250,661 | $ | 50,142,143 | |||||||||||||||||
| Total loans(1) | 39,196,485 | 38,167,613 | 37,053,103 | 35,280,547 | 34,789,104 | ||||||||||||||||||||||
| Total deposits | 42,902,544 | 42,797,191 | 42,593,326 | 42,219,322 | 42,095,585 | ||||||||||||||||||||||
| Total shareholders' equity | 4,796,838 | 4,637,980 | 4,727,623 | 4,492,256 | 4,498,688 | ||||||||||||||||||||||
| Selected Statements of Income Data: | |||||||||||||||||||||||||||
| Net interest income | $ | 456,816 | $ | 401,448 | $ | 337,804 | $ | 299,294 | $ | 295,976 | $ | 1,495,362 | $ | 1,124,957 | |||||||||||||
| Net revenue(2) | 550,655 | 502,930 | 440,746 | 462,084 | 429,743 | 1,956,415 | 1,711,077 | ||||||||||||||||||||
| Net income | 144,817 | 142,961 | 94,513 | 127,391 | 98,757 | 509,682 | 466,151 | ||||||||||||||||||||
| Pre-tax income, excluding provision for credit losses (non-GAAP)(3) | 242,819 | 206,461 | 152,078 | 177,786 | 146,344 | 779,144 | 578,533 | ||||||||||||||||||||
| Net income per common share - Basic | 2.27 | 2.24 | 1.51 | 2.11 | 1.61 | 8.14 | 7.69 | ||||||||||||||||||||
| Net income per common share - Diluted | 2.23 | 2.21 | 1.49 | 2.07 | 1.58 | 8.02 | 7.58 | ||||||||||||||||||||
| Cash dividends declared per common share | 0.34 | 0.34 | 0.34 | 0.34 | 0.31 | 1.36 | 1.24 | ||||||||||||||||||||
| Selected Financial Ratios and Other Data: | |||||||||||||||||||||||||||
| Performance Ratios: | |||||||||||||||||||||||||||
| Net interest margin | 3.71 | % | 3.34 | % | 2.92 | % | 2.60 | % | 2.54 | % | 3.15 | % | 2.57 | % | |||||||||||||
| Net interest margin - fully taxable-equivalent (non-GAAP)(3) | 3.73 | 3.35 | 2.93 | 2.61 | 2.55 | 3.17 | 2.58 | ||||||||||||||||||||
| Non-interest income to average assets | 0.71 | 0.79 | 0.84 | 1.33 | 1.08 | 0.91 | 1.25 | ||||||||||||||||||||
| Non-interest expense to average assets | 2.34 | 2.32 | 2.35 | 2.33 | 2.29 | 2.33 | 2.42 | ||||||||||||||||||||
| Net overhead ratio(4) | 1.63 | 1.53 | 1.51 | 1.00 | 1.21 | 1.42 | 1.17 | ||||||||||||||||||||
| Return on average assets | 1.10 | 1.12 | 0.77 | 1.04 | 0.80 | 1.01 | 1.00 | ||||||||||||||||||||
| Return on average common equity | 12.72 | 12.31 | 8.53 | 11.94 | 9.05 | 11.41 | 11.27 | ||||||||||||||||||||
| Return on average tangible common equity (non-GAAP)(3) | 15.21 | 14.68 | 10.36 | 14.48 | 11.04 | 13.73 | 13.83 | ||||||||||||||||||||
| Average total assets | $ | 52,087,618 | $ | 50,722,694 | $ | 49,353,426 | $ | 49,501,844 | $ | 49,118,777 | $ | 50,424,319 | $ | 46,824,051 | |||||||||||||
| Average total shareholders' equity | 4,710,856 | 4,795,387 | 4,526,110 | 4,500,460 | 4,433,953 | 4,634,224 | 4,300,742 | ||||||||||||||||||||
| Average loans to average deposits ratio | 90.5 | % | 88.8 | % | 86.8 | % | 83.8 | % | 81.7 | % | 87.5 | % | 84.7 | % | |||||||||||||
| Period-end loans to deposits ratio | 91.4 | 89.2 | 87.0 | 83.6 | 82.6 | ||||||||||||||||||||||
| Common Share Data at end of period: | |||||||||||||||||||||||||||
| Market price per common share | $ | 84.52 | $ | 81.55 | $ | 80.15 | $ | 92.93 | $ | 90.82 | |||||||||||||||||
| Book value per common share | 72.12 | 69.56 | 71.06 | 71.26 | 71.62 | ||||||||||||||||||||||
| Tangible book value per common share (non-GAAP)(3) | 61.00 | 58.42 | 59.87 | 59.34 | 59.64 | ||||||||||||||||||||||
| Common shares outstanding | 60,794,008 | 60,743,335 | 60,721,889 | 57,253,214 | 57,054,091 | ||||||||||||||||||||||
| Other Data at end of period: | |||||||||||||||||||||||||||
| Tier 1 leverage ratio(5) | 8.8 | % | 8.8 | % | 8.8 | % | 8.1 | % | 8.0 | % | |||||||||||||||||
| Risk-based capital ratios: | |||||||||||||||||||||||||||
| Tier 1 capital ratio(5) | 10.0 | 9.9 | 9.9 | 9.6 | 9.6 | ||||||||||||||||||||||
| Common equity tier 1 capital ratio(5) | 9.1 | 9.0 | 9.0 | 8.6 | 8.6 | ||||||||||||||||||||||
| Total capital ratio(5) | 11.9 | 11.8 | 11.9 | 11.6 | 11.6 | ||||||||||||||||||||||
| Allowance for credit losses(6) | $ | 357,936 | $ | 315,338 | $ | 312,192 | $ | 301,327 | $ | 299,731 | |||||||||||||||||
| Allowance for loan and unfunded lending-related commitment losses to total loans | 0.91 | % | 0.83 | % | 0.84 | % | 0.85 | % | 0.86 | % | |||||||||||||||||
| Number of: | |||||||||||||||||||||||||||
| Bank subsidiaries | 15 | 15 | 15 | 15 | 15 | ||||||||||||||||||||||
| Banking offices | 174 | 174 | 173 | 174 | 173 | ||||||||||||||||||||||
(1)Excludes mortgage loans held-for-sale.
(2)Net revenue is net interest income and non-interest income.
(3)See Table 17: Supplemental Non-GAAP Financial Measures/Ratios for additional information on this performance measure/ratio.
(4)The net overhead ratio is calculated by netting total non-interest expense and total non-interest income, annualizing this amount, and dividing by that period's average total assets. A lower ratio indicates a higher degree of efficiency.
(5)Capital ratios for current quarter-end are estimated.
(6)The allowance for credit losses includes the allowance for loan losses, the allowance for unfunded lending-related commitments and the allowance for held-to-maturity securities losses.
WINTRUST FINANCIAL CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CONDITION
| (Unaudited) | (Unaudited) | (Unaudited) | (Unaudited) | |||||||||||||||||
| Dec 31, | Sep 30, | Jun 30, | Mar 31, | Dec 31, | ||||||||||||||||
| (In thousands) | 2022 | 2022 | 2022 | 2022 | 2021 | |||||||||||||||
| Assets | ||||||||||||||||||||
| Cash and due from banks | $ | 490,908 | $ | 489,590 | $ | 498,891 | $ | 462,516 | $ | 411,150 | ||||||||||
| Federal funds sold and securities purchased under resale agreements | 58 | 57 | 475,056 | 700,056 | 700,055 | |||||||||||||||
| Interest-bearing deposits with banks | 1,988,719 | 3,968,605 | 3,266,541 | 4,013,597 | 5,372,603 | |||||||||||||||
| Available-for-sale securities, at fair value | 3,243,017 | 2,923,653 | 2,970,121 | 2,998,898 | 2,327,793 | |||||||||||||||
| Held-to-maturity securities, at amortized cost | 3,640,567 | 3,389,842 | 3,413,469 | 3,435,729 | 2,942,285 | |||||||||||||||
| Trading account securities | 1,127 | 179 | 1,010 | 852 | 1,061 | |||||||||||||||
| Equity securities with readily determinable fair value | 110,365 | 114,012 | 93,295 | 92,689 | 90,511 | |||||||||||||||
| Federal Home Loan Bank and Federal Reserve Bank stock | 224,759 | 178,156 | 136,138 | 136,163 | 135,378 | |||||||||||||||
| Brokerage customer receivables | 16,387 | 20,327 | 21,527 | 22,888 | 26,068 | |||||||||||||||
| Mortgage loans held-for-sale | 299,935 | 376,160 | 513,232 | 606,545 | 817,912 | |||||||||||||||
| Loans, net of unearned income | 39,196,485 | 38,167,613 | 37,053,103 | 35,280,547 | 34,789,104 | |||||||||||||||
| Allowance for loan losses | (270,173 | ) | (246,110 | ) | (251,769 | ) | (250,539 | ) | (247,835 | ) | ||||||||||
| Net loans | 38,926,312 | 37,921,503 | 36,801,334 | 35,030,008 | 34,541,269 | |||||||||||||||
| Premises, software and equipment, net | 764,798 | 763,029 | 762,381 | 761,213 | 766,405 | |||||||||||||||
| Lease investments, net | 253,928 | 244,822 | 223,813 | 240,656 | 242,082 | |||||||||||||||
| Accrued interest receivable and other assets | 1,391,342 | 1,316,305 | 1,112,697 | 1,066,750 | 1,084,115 | |||||||||||||||
| Trade date securities receivable | 921,717 | - | - | - | - | |||||||||||||||
| Goodwill | 653,524 | 653,079 | 654,709 | 655,402 | 655,149 | |||||||||||||||
| Other acquisition-related intangible assets | 22,186 | 23,620 | 25,118 | 26,699 | 28,307 | |||||||||||||||
| Total assets | $ | 52,949,649 | $ | 52,382,939 | $ | 50,969,332 | $ | 50,250,661 | $ | 50,142,143 | ||||||||||
| Liabilities and Shareholders' Equity | ||||||||||||||||||||
| Deposits: | ||||||||||||||||||||
| Non-interest-bearing | $ | 12,668,160 | $ | 13,529,277 | $ | 13,855,844 | $ | 13,748,918 | $ | 14,179,980 | ||||||||||
| Interest-bearing | 30,234,384 | 29,267,914 | 28,737,482 | 28,470,404 | 27,915,605 | |||||||||||||||
| Total deposits | 42,902,544 | 42,797,191 | 42,593,326 | 42,219,322 | 42,095,585 | |||||||||||||||
| Federal Home Loan Bank advances | 2,316,071 | 2,316,071 | 1,166,071 | 1,241,071 | 1,241,071 | |||||||||||||||
| Other borrowings | 596,614 | 447,215 | 482,787 | 482,516 | 494,136 | |||||||||||||||
| Subordinated notes | 437,392 | 437,260 | 437,162 | 437,033 | 436,938 | |||||||||||||||
| Junior subordinated debentures | 253,566 | 253,566 | 253,566 | 253,566 | 253,566 | |||||||||||||||
| Trade date securities payable | - | - | - | 437 | - | |||||||||||||||
| Accrued interest payable and other liabilities | 1,646,624 | 1,493,656 | 1,308,797 | 1,124,460 | 1,122,159 | |||||||||||||||
| Total liabilities | 48,152,811 | 47,744,959 | 46,241,709 | 45,758,405 | 45,643,455 | |||||||||||||||
| Shareholders' Equity: | ||||||||||||||||||||
| Preferred stock | 412,500 | 412,500 | 412,500 | 412,500 | 412,500 | |||||||||||||||
| Common stock | 60,797 | 60,743 | 60,722 | 59,091 | 58,892 | |||||||||||||||
| Surplus | 1,902,474 | 1,891,621 | 1,880,913 | 1,698,093 | 1,685,572 | |||||||||||||||
| Treasury stock | (304 | ) | - | - | (109,903 | ) | (109,903 | ) | ||||||||||||
| Retained earnings | 2,849,007 | 2,731,844 | 2,616,525 | 2,548,474 | 2,447,535 | |||||||||||||||
| Accumulated other comprehensive (loss) income | (427,636 | ) | (458,728 | ) | (243,037 | ) | (115,999 | ) | 4,092 | |||||||||||
| Total shareholders' equity | 4,796,838 | 4,637,980 | 4,727,623 | 4,492,256 | 4,498,688 | |||||||||||||||
| Total liabilities and shareholders' equity | $ | 52,949,649 | $ | 52,382,939 | $ | 50,969,332 | $ | 50,250,661 | $ | 50,142,143 | ||||||||||
WINTRUST FINANCIAL CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED)
| Three Months Ended | Years Ended | |||||||||||||||||||||||||
| (In thousands, except per share data) | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Dec 31, 2022 | Dec 31, 2021 | |||||||||||||||||||
| Interest income | ||||||||||||||||||||||||||
| Interest and fees on loans | $ | 498,838 | $ | 402,689 | $ | 320,501 | $ | 285,698 | $ | 289,140 | $ | 1,507,726 | $ | 1,133,528 | ||||||||||||
| Mortgage loans held-for-sale | 3,997 | 5,371 | 5,740 | 6,087 | 7,234 | 21,195 | 32,169 | |||||||||||||||||||
| Interest-bearing deposits with banks | 20,349 | 15,621 | 5,790 | 1,687 | 2,254 | 43,447 | 6,606 | |||||||||||||||||||
| Federal funds sold and securities purchased under resale agreements | 1,263 | 1,845 | 1,364 | 431 | 173 | 4,903 | 173 | |||||||||||||||||||
| Investment securities | 53,092 | 38,569 | 36,541 | 32,398 | 27,210 | 160,600 | 95,286 | |||||||||||||||||||
| Trading account securities | 6 | 7 | 4 | 5 | 4 | 22 | 10 | |||||||||||||||||||
| Federal Home Loan Bank and Federal Reserve Bank stock | 2,918 | 2,109 | 1,823 | 1,772 | 1,776 | 8,622 | 7,067 | |||||||||||||||||||
| Brokerage customer receivables | 282 | 267 | 205 | 174 | 188 | 928 | 645 | |||||||||||||||||||
| Total interest income | 580,745 | 466,478 | 371,968 | 328,252 | 327,979 | 1,747,443 | 1,275,484 | |||||||||||||||||||
| Interest expense | ||||||||||||||||||||||||||
| Interest on deposits | 95,447 | 45,916 | 18,985 | 14,854 | 16,572 | 175,202 | 88,119 | |||||||||||||||||||
| Interest on Federal Home Loan Bank advances | 13,823 | 6,812 | 4,878 | 4,816 | 4,923 | 30,329 | 19,581 | |||||||||||||||||||
| Interest on other borrowings | 5,313 | 4,008 | 2,734 | 2,239 | 2,250 | 14,294 | 9,928 | |||||||||||||||||||
| Interest on subordinated notes | 5,520 | 5,485 | 5,517 | 5,482 | 5,514 | 22,004 | 21,983 | |||||||||||||||||||
| Interest on junior subordinated debentures | 3,826 | 2,809 | 2,050 | 1,567 | 2,744 | 10,252 | 10,916 | |||||||||||||||||||
| Total interest expense | 123,929 | 65,030 | 34,164 | 28,958 | 32,003 | 252,081 | 150,527 | |||||||||||||||||||
| Net interest income | 456,816 | 401,448 | 337,804 | 299,294 | 295,976 | 1,495,362 | 1,124,957 | |||||||||||||||||||
| Provision for credit losses | 47,646 | 6,420 | 20,417 | 4,106 | 9,299 | 78,589 | (59,263 | ) | ||||||||||||||||||
| Net interest income after provision for credit losses | 409,170 | 395,028 | 317,387 | 295,188 | 286,677 | 1,416,773 | 1,184,220 | |||||||||||||||||||
| Non-interest income | ||||||||||||||||||||||||||
| Wealth management | 30,727 | 33,124 | 31,369 | 31,394 | 32,489 | 126,614 | 124,019 | |||||||||||||||||||
| Mortgage banking | 17,407 | 27,221 | 33,314 | 77,231 | 53,138 | 155,173 | 273,010 | |||||||||||||||||||
| Service charges on deposit accounts | 13,054 | 14,349 | 15,888 | 15,283 | 14,734 | 58,574 | 54,168 | |||||||||||||||||||
| Losses on investment securities, net | (6,745 | ) | (3,103 | ) | (7,797 | ) | (2,782 | ) | (1,067 | ) | (20,427 | ) | (1,059 | ) | ||||||||||||
| Fees from covered call options | 7,956 | 1,366 | 1,069 | 3,742 | 1,128 | 14,133 | 3,673 | |||||||||||||||||||
| Trading (losses) gains, net | (306 | ) | (7 | ) | 176 | 3,889 | 206 | 3,752 | 245 | |||||||||||||||||
| Operating lease income, net | 12,384 | 12,644 | 15,007 | 15,475 | 14,204 | 55,510 | 53,691 | |||||||||||||||||||
| Other | 19,362 | 15,888 | 13,916 | 18,558 | 18,935 | 67,724 | 78,373 | |||||||||||||||||||
| Total non-interest income | 93,839 | 101,482 | 102,942 | 162,790 | 133,767 | 461,053 | 586,120 | |||||||||||||||||||
| Non-interest expense | ||||||||||||||||||||||||||
| Salaries and employee benefits | 180,331 | 176,095 | 167,326 | 172,355 | 167,131 | 696,107 | 691,669 | |||||||||||||||||||
| Software and equipment | 24,699 | 24,126 | 24,250 | 22,810 | 23,708 | 95,885 | 87,515 | |||||||||||||||||||
| Operating lease equipment | 10,078 | 9,448 | 8,774 | 9,708 | 10,147 | 38,008 | 40,880 | |||||||||||||||||||
| Occupancy, net | 17,763 | 17,727 | 17,651 | 17,824 | 18,343 | 70,965 | 74,184 | |||||||||||||||||||
| Data processing | 7,927 | 7,767 | 8,010 | 7,505 | 7,207 | 31,209 | 27,279 | |||||||||||||||||||
| Advertising and marketing | 14,279 | 16,600 | 16,615 | 11,924 | 13,981 | 59,418 | 47,275 | |||||||||||||||||||
| Professional fees | 9,267 | 7,544 | 7,876 | 8,401 | 7,551 | 33,088 | 29,494 | |||||||||||||||||||
| Amortization of other acquisition-related intangible assets | 1,436 | 1,492 | 1,579 | 1,609 | 1,811 | 6,116 | 7,734 | |||||||||||||||||||
| FDIC insurance | 6,775 | 7,186 | 6,949 | 7,729 | 7,317 | 28,639 | 27,030 | |||||||||||||||||||
| OREO expense, net | 369 | 229 | 294 | (1,032 | ) | (641 | ) | (140 | ) | (1,654 | ) | |||||||||||||||
| Other | 34,912 | 28,255 | 29,344 | 25,465 | 26,844 | 117,976 | 101,138 | |||||||||||||||||||
| Total non-interest expense | 307,836 | 296,469 | 288,668 | 284,298 | 283,399 | 1,177,271 | 1,132,544 | |||||||||||||||||||
| Income before taxes | 195,173 | 200,041 | 131,661 | 173,680 | 137,045 | 700,555 | 637,796 | |||||||||||||||||||
| Income tax expense | 50,356 | 57,080 | 37,148 | 46,289 | 38,288 | 190,873 | 171,645 | |||||||||||||||||||
| Net income | $ | 144,817 | $ | 142,961 | $ | 94,513 | $ | 127,391 | $ | 98,757 | $ | 509,682 | $ | 466,151 | ||||||||||||
| Preferred stock dividends | 6,991 | 6,991 | 6,991 | 6,991 | 6,991 | 27,964 | 27,964 | |||||||||||||||||||
| Net income applicable to common shares | $ | 137,826 | $ | 135,970 | $ | 87,522 | $ | 120,400 | $ | 91,766 | $ | 481,718 | $ | 438,187 | ||||||||||||
| Net income per common share - Basic | $ | 2.27 | $ | 2.24 | $ | 1.51 | $ | 2.11 | $ | 1.61 | $ | 8.14 | $ | 7.69 | ||||||||||||
| Net income per common share - Diluted | $ | 2.23 | $ | 2.21 | $ | 1.49 | $ | 2.07 | $ | 1.58 | $ | 8.02 | $ | 7.58 | ||||||||||||
| Cash dividends declared per common share | $ | 0.34 | $ | 0.34 | $ | 0.34 | $ | 0.34 | $ | 0.31 | $ | 1.36 | $ | 1.24 | ||||||||||||
| Weighted average common shares outstanding | 60,769 | 60,738 | 58,063 | 57,196 | 57,022 | 59,205 | 56,994 | |||||||||||||||||||
| Dilutive potential common shares | 1,096 | 837 | 775 | 862 | 976 | 886 | 792 | |||||||||||||||||||
| Average common shares and dilutive common shares | 61,865 | 61,575 | 58,838 | 58,058 | 57,998 | 60,091 | 57,786 | |||||||||||||||||||
TABLE 1: LOAN PORTFOLIO MIX AND GROWTH RATES
| % Growth From(1) | |||||||||||||||||||
| (Dollars in thousands) | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2022(2) | Dec 31, 2021 | ||||||||||||
| Balance: | |||||||||||||||||||
| Mortgage loans held-for-sale, excluding early buy-out exercised loans guaranteed by U.S. government agencies | $ | 156,297 | $ | 216,062 | $ | 294,688 | $ | 296,548 | $ | 473,102 | NM | (67 | )% | ||||||
| Mortgage loans held-for-sale, early buy-out exercised loans guaranteed by U.S. government agencies | 143,638 | 160,098 | 218,544 | 309,997 | 344,810 | (41 | ) | (58 | ) | ||||||||||
| Total mortgage loans held-for-sale | $ | 299,935 | $ | 376,160 | $ | 513,232 | $ | 606,545 | $ | 817,912 | (80 | )% | (63 | )% | |||||
| Core loans: | |||||||||||||||||||
| Commercial | |||||||||||||||||||
| Commercial and industrial | $ | 5,852,166 | $ | 5,818,959 | $ | 5,502,584 | $ | 5,348,266 | $ | 5,346,084 | 2 | % | 9 | % | |||||
| Asset-based lending | 1,473,344 | 1,545,038 | 1,552,033 | 1,365,297 | 1,299,869 | (18 | ) | 13 | |||||||||||
| Municipal | 668,235 | 608,234 | 535,586 | 533,357 | 536,498 | 39 | 25 | ||||||||||||
| Leases | 1,840,928 | 1,582,359 | 1,592,329 | 1,481,368 | 1,454,099 | 65 | 27 | ||||||||||||
| Commercial real estate | |||||||||||||||||||
| Residential construction | 76,877 | 66,957 | 55,941 | 57,037 | 51,464 | 59 | 49 | ||||||||||||
| Commercial construction | 1,102,098 | 1,176,407 | 1,145,602 | 1,055,972 | 1,034,988 | (25 | ) | 6 | |||||||||||
| Land | 307,955 | 282,147 | 304,775 | 283,397 | 269,752 | 36 | 14 | ||||||||||||
| Office | 1,337,176 | 1,269,729 | 1,321,745 | 1,273,705 | 1,285,686 | 21 | 4 | ||||||||||||
| Industrial | 1,836,276 | 1,777,658 | 1,746,280 | 1,668,516 | 1,585,808 | 13 | 16 | ||||||||||||
| Retail | 1,304,444 | 1,331,316 | 1,331,059 | 1,395,021 | 1,429,567 | (8 | ) | (9 | ) | ||||||||||
| Multi-family | 2,560,709 | 2,305,433 | 2,171,583 | 2,175,875 | 2,043,754 | 44 | 25 | ||||||||||||
| Mixed use and other | 1,425,412 | 1,368,537 | 1,330,220 | 1,325,551 | 1,289,267 | 16 | 11 | ||||||||||||
| Home equity | 332,698 | 328,822 | 325,826 | 321,435 | 335,155 | 5 | (1 | ) | |||||||||||
| Residential real estate | |||||||||||||||||||
| Residential real estate loans for investment | 2,207,595 | 2,086,795 | 1,965,051 | 1,749,889 | 1,606,271 | 23 | 37 | ||||||||||||
| Residential mortgage loans, early buy-out eligible loans guaranteed by U.S. government agencies | 80,701 | 57,161 | 34,764 | 13,520 | 22,707 | NM | NM | ||||||||||||
| Residential mortgage loans, early buy-out exercised loans guaranteed by U.S. government agencies | 84,087 | 91,503 | 79,092 | 36,576 | 8,121 | (32 | ) | NM | |||||||||||
| Total core loans | $ | 22,490,701 | $ | 21,697,055 | $ | 20,994,470 | $ | 20,084,782 | $ | 19,599,090 | 15 | % | 15 | % | |||||
| Niche loans: | |||||||||||||||||||
| Commercial | |||||||||||||||||||
| Franchise | $ | 1,169,623 | $ | 1,118,478 | $ | 1,136,929 | $ | 1,181,761 | $ | 1,227,234 | 18 | % | (5 | )% | |||||
| Mortgage warehouse lines of credit | 237,392 | 297,374 | 398,085 | 261,847 | 359,818 | (80 | ) | (34 | ) | ||||||||||
| Community Advantage - homeowners association | 380,875 | 365,967 | 341,095 | 324,383 | 308,286 | 16 | 24 | ||||||||||||
| Insurance agency lending | 897,678 | 879,183 | 906,375 | 833,720 | 813,897 | 8 | 10 | ||||||||||||
| Premium Finance receivables | |||||||||||||||||||
| U.S. property & casualty insurance | 5,103,820 | 4,983,795 | 4,781,042 | 4,271,828 | 4,178,474 | 10 | 22 | ||||||||||||
| Canada property & casualty insurance | 745,639 | 729,545 | 760,405 | 665,580 | 677,013 | 9 | 10 | ||||||||||||
| Life insurance | 8,090,998 | 8,004,856 | 7,608,433 | 7,354,163 | 7,042,810 | 4 | 15 | ||||||||||||
| Consumer and other | 50,836 | 47,702 | 44,180 | 48,519 | 24,199 | 26 | NM | ||||||||||||
| Total niche loans | $ | 16,676,861 | $ | 16,426,900 | $ | 15,976,544 | $ | 14,941,801 | $ | 14,631,731 | 6 | % | 14 | % | |||||
| Commercial PPP loans: | |||||||||||||||||||
| Originated in 2020 | $ | 7,898 | $ | 8,724 | $ | 18,547 | $ | 40,016 | $ | 74,412 | (38 | )% | (89 | )% | |||||
| Originated in 2021 | 21,025 | 34,934 | 63,542 | 213,948 | 483,871 | NM | (96 | ) | |||||||||||
| Total commercial PPP loans | $ | 28,923 | $ | 43,658 | $ | 82,089 | $ | 253,964 | $ | 558,283 | NM | (95 | )% | ||||||
| Total loans, net of unearned income | $ | 39,196,485 | $ | 38,167,613 | $ | 37,053,103 | $ | 35,280,547 | $ | 34,789,104 | 11 | % | 13 | % | |||||
(1)NM - Not meaningful.
(2)Annualized
TABLE 2: DEPOSIT PORTFOLIO MIX AND GROWTH RATES
| % Growth From | ||||||||||||||||||||||||
| (Dollars in thousands) | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2022(1) | Dec 31, 2021 | |||||||||||||||||
| Balance: | ||||||||||||||||||||||||
| Non-interest-bearing | $ | 12,668,160 | $ | 13,529,277 | $ | 13,855,844 | $ | 13,748,918 | $ | 14,179,980 | (25 | )% | (11 | )% | ||||||||||
| NOW and interest-bearing demand deposits | 5,591,986 | 5,676,122 | 5,918,908 | 5,089,724 | 4,646,944 | (6 | ) | 20 | ||||||||||||||||
| Wealth management deposits(2) | 2,463,833 | 2,988,195 | 3,182,407 | 2,542,995 | 2,612,759 | (70 | ) | (6 | ) | |||||||||||||||
| Money market | 12,886,795 | 12,538,489 | 12,273,350 | 13,012,460 | 12,840,432 | 11 | - | |||||||||||||||||
| Savings | 4,556,635 | 3,988,790 | 3,686,596 | 4,089,230 | 3,846,681 | 56 | 18 | |||||||||||||||||
| Time certificates of deposit | 4,735,135 | 4,076,318 | 3,676,221 | 3,735,995 | 3,968,789 | 64 | 19 | |||||||||||||||||
| Total deposits | $ | 42,902,544 | $ | 42,797,191 | $ | 42,593,326 | $ | 42,219,322 | $ | 42,095,585 | 1 | % | 2 | % | ||||||||||
| Mix: | ||||||||||||||||||||||||
| Non-interest-bearing | 30 | % | 32 | % | 33 | % | 32 | % | 34 | % | ||||||||||||||
| NOW and interest-bearing demand deposits | 13 | 13 | 13 | 12 | 11 | |||||||||||||||||||
| Wealth management deposits(2) | 5 | 7 | 7 | 6 | 6 | |||||||||||||||||||
| Money market | 30 | 29 | 29 | 31 | 31 | |||||||||||||||||||
| Savings | 11 | 9 | 9 | 10 | 9 | |||||||||||||||||||
| Time certificates of deposit | 11 | 10 | 9 | 9 | 9 | |||||||||||||||||||
| Total deposits | 100 | % | 100 | % | 100 | % | 100 | % | 100 | % | ||||||||||||||
(1)Annualized.
(2)Represents deposit balances of the Company's subsidiary banks from brokerage customers of Wintrust Investments, Chicago Deferred Exchange Company, LLC ("CDEC"), trust and asset management customers of the Company.
TABLE 3: TIME CERTIFICATES OF DEPOSIT MATURITY/RE-PRICING ANALYSIS
As of December 31, 2022
| (Dollars in thousands) | Total Time Certificates of Deposit | Weighted-Average Rate of Maturing Time Certificates of Deposit(1) | ||||
| 1-3 months | $ | 988,118 | 2.04 | % | ||
| 4-6 months | 929,448 | 1.89 | ||||
| 7-9 months | 815,885 | 1.56 | ||||
| 10-12 months | 894,365 | 2.06 | ||||
| 13-18 months | 654,059 | 2.32 | ||||
| 19-24 months | 233,827 | 2.03 | ||||
| 24+ months | 219,433 | 2.20 | ||||
| Total | $ | 4,735,135 | 1.98 | % | ||
(1)Weighted-average rate excludes the impact of purchase accounting fair value adjustments.
TABLE 4: QUARTERLY AVERAGE BALANCES
| Average Balance for three months ended, | ||||||||||||||||||||
| Dec 31, | Sep 30, | Jun 30, | Mar 31, | Dec 31, | ||||||||||||||||
| (In thousands) | 2022 | 2022 | 2022 | 2022 | 2021 | |||||||||||||||
| Interest-bearing deposits with banks, securities purchased under resale agreements and cash equivalents(1) | $ | 2,449,889 | $ | 3,039,907 | $ | 3,265,607 | $ | 4,563,726 | $ | 6,148,165 | ||||||||||
| Investment securities(2) | 7,310,383 | 6,655,215 | 6,589,947 | 6,378,022 | 5,317,351 | |||||||||||||||
| FHLB and FRB stock | 185,290 | 142,304 | 136,930 | 135,912 | 135,414 | |||||||||||||||
| Liquidity management assets(3) | 9,945,562 | 9,837,426 | 9,992,484 | 11,077,660 | 11,600,930 | |||||||||||||||
| Other earning assets(3)(4) | 18,585 | 21,805 | 24,059 | 25,192 | 28,298 | |||||||||||||||
| Mortgage loans held-for-sale | 308,639 | 455,342 | 560,707 | 664,019 | 827,672 | |||||||||||||||
| Loans, net of unearned income(3)(5) | 38,566,871 | 37,431,126 | 35,860,329 | 34,830,520 | 33,677,777 | |||||||||||||||
| Total earning assets(3) | 48,839,657 | 47,745,699 | 46,437,579 | 46,597,391 | 46,134,677 | |||||||||||||||
| Allowance for loan and investment security losses | (252,827 | ) | (260,270 | ) | (260,547 | ) | (253,080 | ) | (254,874 | ) | ||||||||||
| Cash and due from banks | 475,691 | 458,263 | 476,741 | 481,634 | 468,331 | |||||||||||||||
| Other assets | 3,025,097 | 2,779,002 | 2,699,653 | 2,675,899 | 2,770,643 | |||||||||||||||
| Total assets | $ | 52,087,618 | $ | 50,722,694 | $ | 49,353,426 | $ | 49,501,844 | $ | 49,118,777 | ||||||||||
| NOW and interest-bearing demand deposits | $ | 5,598,291 | $ | 5,789,368 | $ | 5,230,702 | $ | 4,788,272 | $ | 4,439,242 | ||||||||||
| Wealth management deposits | 2,883,247 | 3,078,764 | 2,835,267 | 2,505,800 | 2,646,879 | |||||||||||||||
| Money market accounts | 12,319,842 | 12,037,412 | 11,892,948 | 12,773,805 | 12,665,167 | |||||||||||||||
| Savings accounts | 4,403,113 | 3,862,579 | 3,882,856 | 3,904,299 | 3,766,037 | |||||||||||||||
| Time deposits | 4,023,232 | 3,675,930 | 3,687,778 | 3,861,371 | 4,058,282 | |||||||||||||||
| Interest-bearing deposits | 29,227,725 | 28,444,053 | 27,529,551 | 27,833,547 | 27,575,607 | |||||||||||||||
| Federal Home Loan Bank advances | 2,088,201 | 1,403,573 | 1,197,390 | 1,241,071 | 1,241,073 | |||||||||||||||
| Other borrowings | 480,553 | 478,909 | 489,779 | 494,267 | 501,933 | |||||||||||||||
| Subordinated notes | 437,312 | 437,191 | 437,084 | 436,966 | 436,861 | |||||||||||||||
| Junior subordinated debentures | 253,566 | 253,566 | 253,566 | 253,566 | 253,566 | |||||||||||||||
| Total interest-bearing liabilities | 32,487,357 | 31,017,292 | 29,907,370 | 30,259,417 | 30,009,040 | |||||||||||||||
| Non-interest-bearing deposits | 13,404,036 | 13,731,219 | 13,805,128 | 13,734,064 | 13,640,270 | |||||||||||||||
| Other liabilities | 1,485,369 | 1,178,796 | 1,114,818 | 1,007,903 | 1,035,514 | |||||||||||||||
| Equity | 4,710,856 | 4,795,387 | 4,526,110 | 4,500,460 | 4,433,953 | |||||||||||||||
| Total liabilities and shareholders' equity | $ | 52,087,618 | $ | 50,722,694 | $ | 49,353,426 | $ | 49,501,844 | $ | 49,118,777 | ||||||||||
| Net free funds/contribution(6) | $ | 16,352,300 | $ | 16,728,407 | $ | 16,530,209 | $ | 16,337,974 | $ | 16,125,637 | ||||||||||
(1)Includes interest-bearing deposits from banks and securities purchased under resale agreements with original maturities of greater than three months. Cash equivalents include federal funds sold and securities purchased under resale agreements with original maturities of three months or less.
(2)Investment securities includes investment securities classified as available-for-sale and held-to-maturity, and equity securities with readily determinable fair values. Equity securities without readily determinable fair values are included within other assets.
(3)See Table 17: Supplemental Non-GAAP Financial Measures/Ratios for additional information on this performance measure/ratio.
(4)Other earning assets include brokerage customer receivables and trading account securities.
(5)Loans, net of unearned income, include non-accrual loans.
(6)Net free funds are the difference between total average earning assets and total average interest-bearing liabilities. The estimated contribution to net interest margin from net free funds is calculated using the rate paid for total interest-bearing liabilities.
TABLE 5: QUARTERLY NET INTEREST INCOME
| Net Interest Income for three months ended, | ||||||||||||||||||||
| Dec 31, | Sep 30, | Jun 30, | Mar 31, | Dec 31, | ||||||||||||||||
| (In thousands) | 2022 | 2022 | 2022 | 2022 | 2021 | |||||||||||||||
| Interest income: | ||||||||||||||||||||
| Interest-bearing deposits with banks, securities purchased under resale agreements and cash equivalents | $ | 21,612 | $ | 17,466 | $ | 7,154 | $ | 2,118 | $ | 2,427 | ||||||||||
| Investment securities | 53,630 | 39,071 | 37,013 | 32,863 | 27,696 | |||||||||||||||
| FHLB and FRB stock | 2,918 | 2,109 | 1,823 | 1,772 | 1,776 | |||||||||||||||
| Liquidity management assets(1) | 78,160 | 58,646 | 45,990 | 36,753 | 31,899 | |||||||||||||||
| Other earning assets(1) | 289 | 275 | 210 | 181 | 194 | |||||||||||||||
| Mortgage loans held-for-sale | 3,997 | 5,371 | 5,740 | 6,087 | 7,234 | |||||||||||||||
| Loans, net of unearned income(1) | 500,432 | 403,719 | 321,069 | 286,125 | 289,557 | |||||||||||||||
| Total interest income | $ | 582,878 | $ | 468,011 | $ | 373,009 | $ | 329,146 | $ | 328,884 | ||||||||||
| Interest expense: | ||||||||||||||||||||
| NOW and interest-bearing demand deposits | $ | 14,982 | $ | 8,041 | $ | 2,553 | $ | 1,990 | $ | 1,913 | ||||||||||
| Wealth management deposits | 14,079 | 11,068 | 3,685 | 918 | 1,402 | |||||||||||||||
| Money market accounts | 45,468 | 18,916 | 8,559 | 7,648 | 7,658 | |||||||||||||||
| Savings accounts | 8,421 | 2,130 | 347 | 336 | 345 | |||||||||||||||
| Time deposits | 12,497 | 5,761 | 3,841 | 3,962 | 5,254 | |||||||||||||||
| Interest-bearing deposits | 95,447 | 45,916 | 18,985 | 14,854 | 16,572 | |||||||||||||||
| Federal Home Loan Bank advances | 13,823 | 6,812 | 4,878 | 4,816 | 4,923 | |||||||||||||||
| Other borrowings | 5,313 | 4,008 | 2,734 | 2,239 | 2,250 | |||||||||||||||
| Subordinated notes | 5,520 | 5,485 | 5,517 | 5,482 | 5,514 | |||||||||||||||
| Junior subordinated debentures | 3,826 | 2,809 | 2,050 | 1,567 | 2,744 | |||||||||||||||
| Total interest expense | $ | 123,929 | $ | 65,030 | $ | 34,164 | $ | 28,958 | $ | 32,003 | ||||||||||
| Less: Fully taxable-equivalent adjustment | (2,133 | ) | (1,533 | ) | (1,041 | ) | (894 | ) | (905 | ) | ||||||||||
| Net interest income (GAAP)(2) | 456,816 | 401,448 | 337,804 | 299,294 | 295,976 | |||||||||||||||
| Fully taxable-equivalent adjustment | 2,133 | 1,533 | 1,041 | 894 | 905 | |||||||||||||||
| Net interest income, fully taxable-equivalent (non-GAAP)(2) | $ | 458,949 | $ | 402,981 | $ | 338,845 | $ | 300,188 | $ | 296,881 | ||||||||||
(1)Interest income on tax-advantaged loans, trading securities and investment securities reflects a taxable-equivalent adjustment based on the marginal federal corporate tax rate in effect as of the applicable period.
(2)See Table 17: Supplemental Non-GAAP Financial Measures/Ratios for additional information on this performance measure/ratio.
TABLE 6: QUARTERLY NET INTEREST MARGIN
| Net Interest Margin for three months ended, | |||||||||||||||
| Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | |||||||||||
| Yield earned on: | |||||||||||||||
| Interest-bearing deposits with banks, securities purchased under resale agreements and cash equivalents | 3.50 | % | 2.28 | % | 0.88 | % | 0.19 | % | 0.16 | % | |||||
| Investment securities | 2.91 | 2.33 | 2.25 | 2.09 | 2.07 | ||||||||||
| FHLB and FRB stock | 6.25 | 5.88 | 5.34 | 5.29 | 5.20 | ||||||||||
| Liquidity management assets | 3.12 | 2.37 | 1.85 | 1.35 | 1.09 | ||||||||||
| Other earning assets | 6.17 | 5.01 | 3.49 | 2.91 | 2.71 | ||||||||||
| Mortgage loans held-for-sale | 5.14 | 4.68 | 4.11 | 3.72 | 3.47 | ||||||||||
| Loans, net of unearned income | 5.15 | 4.28 | 3.59 | 3.33 | 3.41 | ||||||||||
| Total earning assets | 4.73 | % | 3.89 | % | 3.22 | % | 2.86 | % | 2.83 | % | |||||
| Rate paid on: | |||||||||||||||
| NOW and interest-bearing demand deposits | 1.06 | % | 0.55 | % | 0.20 | % | 0.17 | % | 0.17 | % | |||||
| Wealth management deposits | 1.94 | 1.43 | 0.52 | 0.15 | 0.21 | ||||||||||
| Money market accounts | 1.46 | 0.62 | 0.29 | 0.24 | 0.24 | ||||||||||
| Savings accounts | 0.76 | 0.22 | 0.04 | 0.03 | 0.04 | ||||||||||
| Time deposits | 1.23 | 0.62 | 0.42 | 0.42 | 0.51 | ||||||||||
| Interest-bearing deposits | 1.30 | 0.64 | 0.28 | 0.22 | 0.24 | ||||||||||
| Federal Home Loan Bank advances | 2.63 | 1.93 | 1.63 | 1.57 | 1.57 | ||||||||||
| Other borrowings | 4.39 | 3.32 | 2.24 | 1.84 | 1.78 | ||||||||||
| Subordinated notes | 5.05 | 5.02 | 5.05 | 5.02 | 5.05 | ||||||||||
| Junior subordinated debentures | 5.90 | 4.33 | 3.20 | 2.47 | 4.23 | ||||||||||
| Total interest-bearing liabilities | 1.51 | % | 0.83 | % | 0.46 | % | 0.39 | % | 0.42 | % | |||||
| Interest rate spread(1)(2) | 3.22 | % | 3.06 | % | 2.76 | % | 2.47 | % | 2.41 | % | |||||
| Less: Fully taxable-equivalent adjustment | (0.02 | ) | (0.01 | ) | (0.01 | ) | (0.01 | ) | (0.01 | ) | |||||
| Net free funds/contribution(3) | 0.51 | 0.29 | 0.17 | 0.14 | 0.14 | ||||||||||
| Net interest margin (GAAP)(2) | 3.71 | % | 3.34 | % | 2.92 | % | 2.60 | % | 2.54 | % | |||||
| Fully taxable-equivalent adjustment | 0.02 | 0.01 | 0.01 | 0.01 | 0.01 | ||||||||||
| Net interest margin, fully taxable-equivalent (non-GAAP)(2) | 3.73 | % | 3.35 | % | 2.93 | % | 2.61 | % | 2.55 | % | |||||
(1)Interest rate spread is the difference between the yield earned on earning assets and the rate paid on interest-bearing liabilities.
(2)See Table 17: Supplemental Non-GAAP Financial Measures/Ratios for additional information on this performance measure/ratio.
(3)Net free funds are the difference between total average earning assets and total average interest-bearing liabilities. The estimated contribution to net interest margin from net free funds is calculated using the rate paid for total interest-bearing liabilities.
TABLE 7: YEAR-TO-DATE AVERAGE BALANCES, AND NET INTEREST INCOME AND MARGIN
| Average Balance fortwelve months ended, | Interest fortwelve months ended, | Yield/Rate fortwelve months ended, | |||||||||||||||||
| (Dollars in thousands) | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2022 | Dec 31, 2021 | |||||||||||||
| Interest-bearing deposits with banks, securities purchased under resale agreements and cash equivalents(1) | $ | 3,323,196 | $ | 4,840,048 | $ | 48,350 | $ | 6,779 | 1.45 | % | 0.14 | % | |||||||
| Investment securities(2) | 6,735,732 | 4,779,313 | 162,577 | 97,258 | 2.41 | 2.03 | |||||||||||||
| FHLB and FRB stock | 150,223 | 135,873 | 8,622 | 7,067 | 5.74 | 5.20 | |||||||||||||
| Liquidity management assets(3)(4) | $ | 10,209,151 | $ | 9,755,234 | $ | 219,549 | $ | 111,104 | 2.15 | % | 1.14 | % | |||||||
| Other earning assets(3)(4)(5) | 22,391 | 25,096 | 955 | 657 | 4.27 | 2.62 | |||||||||||||
| Mortgage loans held-for-sale | 496,088 | 959,457 | 21,195 | 32,169 | 4.27 | 3.35 | |||||||||||||
| Loans, net of unearned income(3)(4)(6) | 36,684,528 | 33,051,043 | 1,511,345 | 1,135,155 | 4.12 | 3.43 | |||||||||||||
| Total earning assets(4) | $ | 47,412,158 | $ | 43,790,830 | $ | 1,753,044 | $ | 1,279,085 | 3.70 | % | 2.92 | % | |||||||
| Allowance for loan and investment security losses | (256,690 | ) | (284,163 | ) | |||||||||||||||
| Cash and due from banks | 473,025 | 432,836 | |||||||||||||||||
| Other assets | 2,795,826 | 2,884,548 | |||||||||||||||||
| Total assets | $ | 50,424,319 | $ | 46,824,051 | |||||||||||||||
| NOW and interest-bearing demand deposits | $ | 5,355,077 | $ | 4,029,662 | $ | 27,566 | $ | 7,739 | 0.51 | % | 0.19 | % | |||||||
| Wealth management deposits | 2,827,497 | 2,361,412 | 29,750 | 4,534 | 1.05 | 0.19 | |||||||||||||
| Money market accounts | 12,254,159 | 11,801,788 | 80,591 | 32,031 | 0.66 | 0.27 | |||||||||||||
| Savings accounts | 4,014,166 | 3,734,162 | 11,234 | 1,583 | 0.28 | 0.04 | |||||||||||||
| Time deposits | 3,812,148 | 4,447,871 | 26,061 | 42,232 | 0.68 | 0.95 | |||||||||||||
| Interest-bearing deposits | $ | 28,263,047 | $ | 26,374,895 | $ | 175,202 | $ | 88,119 | 0.62 | % | 0.33 | % | |||||||
| Federal Home Loan Bank advances | 1,484,663 | 1,236,478 | 30,329 | 19,581 | 2.04 | 1.58 | |||||||||||||
| Other borrowings | 485,820 | 514,657 | 14,294 | 9,928 | 2.94 | 1.93 | |||||||||||||
| Subordinated notes | 437,139 | 436,697 | 22,004 | 21,983 | 5.03 | 5.03 | |||||||||||||
| Junior subordinated debentures | 253,566 | 253,566 | 10,252 | 10,916 | 4.10 | 4.25 | |||||||||||||
| Total interest-bearing liabilities | $ | 30,924,235 | $ | 28,816,293 | $ | 252,081 | $ | 150,527 | 0.81 | % | 0.52 | % | |||||||
| Non-interest-bearing deposits | 13,667,879 | 12,638,518 | |||||||||||||||||
| Other liabilities | 1,197,981 | 1,068,498 | |||||||||||||||||
| Equity | 4,634,224 | 4,300,742 | |||||||||||||||||
| Total liabilities and shareholders' equity | $ | 50,424,319 | $ | 46,824,051 | |||||||||||||||
| Interest rate spread(4)(7) | 2.89 | % | 2.40 | % | |||||||||||||||
| Less: Fully taxable-equivalent adjustment | (5,601 | ) | (3,601 | ) | (0.02 | ) | (0.01 | ) | |||||||||||
| Net free funds/contribution(8) | $ | 16,487,923 | $ | 14,974,537 | 0.28 | 0.18 | |||||||||||||
| Net interest income/margin (GAAP)(4) | $ | 1,495,362 | $ | 1,124,957 | 3.15 | % | 2.57 | % | |||||||||||
| Fully taxable-equivalent adjustment | 5,601 | 3,601 | 0.02 | 0.01 | |||||||||||||||
| Net interest income/margin, fully taxable-equivalent (non-GAAP)(4) | $ | 1,500,963 | $ | 1,128,558 | 3.17 | % | 2.58 | % | |||||||||||
(1)Includes interest-bearing deposits from banks and securities purchased under resale agreements with original maturities of greater than three months. Cash equivalents include federal funds sold and securities purchased under resale agreements with original maturities of three months or less.
(2)Investment securities includes investment securities classified as available-for-sale and held-to-maturity, and equity securities with readily determinable fair values. Equity securities without readily determinable fair values are included within other assets.
(3)Interest income on tax-advantaged loans, trading securities and investment securities reflects a taxable-equivalent adjustment based on the marginal federal corporate tax rate in effect as of the applicable period.
(4)See Table 17: Supplemental Non-GAAP Financial Measures/Ratios for additional information on this performance measure/ratio.
(5)Other earning assets include brokerage customer receivables and trading account securities.
(6)Loans, net of unearned income, include non-accrual loans.
(7)Interest rate spread is the difference between the yield earned on earning assets and the rate paid on interest-bearing liabilities.
(8)Net free funds are the difference between total average earning assets and total average interest-bearing liabilities. The estimated contribution to net interest margin from net free funds is calculated using the rate paid for total interest-bearing liabilities.
TABLE 8: INTEREST RATE SENSITIVITY
As an ongoing part of its financial strategy, the Company attempts to manage the impact of fluctuations in market interest rates on net interest income. Management measures its exposure to changes in interest rates by modeling many different interest rate scenarios.
The following interest rate scenarios display the percentage change in net interest income over a one-year time horizon assuming increases and decreases of 100 and 200 basis points. The Static Shock Scenario results incorporate actual cash flows and repricing characteristics for balance sheet instruments following an instantaneous, parallel change in market rates based upon a static (i.e. no growth or constant) balance sheet. Conversely, the Ramp Scenario results incorporate management's projections of future volume and pricing of each of the product lines following a gradual, parallel change in market rates over twelve months. Actual results may differ from these simulated results due to timing, magnitude, and frequency of interest rate changes as well as changes in market conditions and management strategies. The interest rate sensitivity for both the Static Shock and Ramp Scenario is as follows:
| Static Shock Scenario | +200 Basis Points | +100 Basis Points | -100 Basis Points | -200 Basis Points | ||||||||
| Dec 31, 2022 | 7.2 | % | 3.8 | % | (5.0 | )% | (12.1 | )% | ||||
| Sep 30, 2022 | 12.9 | 7.1 | (8.7 | ) | (18.9 | ) | ||||||
| Jun 30, 2022 | 17.0 | 9.0 | (12.6 | ) | (23.8 | ) | ||||||
| Mar 31, 2022 | 21.4 | 11.0 | (11.3 | ) | (18.7 | ) | ||||||
| Dec 31, 2021 | 25.3 | 12.4 | (8.5 | ) | (15.8 | ) | ||||||
| Ramp Scenario | +200 Basis Points | +100 Basis Points | -100 Basis Points | -200 Basis Points | |||||||
| Dec 31, 2022 | 5.6 | % | 3.0 | % | (2.9 | )% | (6.8 | )% | |||
| Sep 30, 2022 | 6.5 | 3.6 | (3.9 | ) | (8.6 | ) | |||||
| Jun 30, 2022 | 10.2 | 5.3 | (6.9 | ) | (14.3 | ) | |||||
| Mar 31, 2022 | 11.2 | 5.8 | (7.1 | ) | (12.4 | ) | |||||
| Dec 31, 2021 | 13.9 | 6.9 | (5.6 | ) | (10.8 | ) | |||||
As shown above, the magnitude of potential changes in net interest income in various interest rate scenarios has continued to diminish. Given the recent unprecedented rise in interest rates, the Company has made a conscious effort to reposition its exposure to changing interest rates given the uncertainty of the future interest rate environment. To this end, management has executed various derivative instruments including collars and receive fixed swaps to hedge variable rate loan exposures and originated a higher percentage of its loan originations in longer term fixed rate loans. The Company will continue to monitor current and projected interest rates and expects to execute additional derivatives to mitigate potential fluctuations in the net interest margin in future years.
TABLE 9: MATURITIES AND SENSITIVITIES TO CHANGES IN INTEREST RATES
| Loans repricing or maturity period | ||||||||||||||
| As of December 31, 2022 | One year or less | From one to five years | From five to fifteen years | After fifteen years | Total | |||||||||
| (In thousands) | ||||||||||||||
| Commercial | ||||||||||||||
| Fixed rate | $ | 555,594 | $ | 2,534,527 | $ | 1,592,024 | $ | 12,925 | $ | 4,695,070 | ||||
| Variable rate | 7,852,693 | 1,352 | 49 | - | 7,854,094 | |||||||||
| Total commercial | $ | 8,408,287 | $ | 2,535,879 | $ | 1,592,073 | $ | 12,925 | $ | 12,549,164 | ||||
| Commercial real estate | ||||||||||||||
| Fixed rate | 430,152 | 2,744,033 | 607,770 | 46,352 | 3,828,307 | |||||||||
| Variable rate | 6,102,383 | 20,257 | - | - | 6,122,640 | |||||||||
| Total commercial real estate | $ | 6,532,535 | $ | 2,764,290 | $ | 607,770 | $ | 46,352 | $ | 9,950,947 | ||||
| Home equity | ||||||||||||||
| Fixed rate | 11,960 | 3,185 | - | 144 | 15,289 | |||||||||
| Variable rate | 317,409 | - | - | - | 317,409 | |||||||||
| Total home equity | $ | 329,369 | $ | 3,185 | $ | - | $ | 144 | $ | 332,698 | ||||
| Residential real estate | ||||||||||||||
| Fixed rate | 20,048 | 3,960 | 30,245 | 1,032,018 | 1,086,271 | |||||||||
| Variable rate | 63,242 | 238,405 | 984,465 | - | 1,286,112 | |||||||||
| Total residential real estate | $ | 83,290 | $ | 242,365 | $ | 1,014,710 | $ | 1,032,018 | $ | 2,372,383 | ||||
| Premium finance receivables - property & casualty | ||||||||||||||
| Fixed rate | 5,695,585 | 153,874 | - | - | 5,849,459 | |||||||||
| Variable rate | - | - | - | - | - | |||||||||
| Total premium finance receivables - property & casualty | $ | 5,695,585 | $ | 153,874 | $ | - | $ | - | $ | 5,849,459 | ||||
| Premium finance receivables - life insurance | ||||||||||||||
| Fixed rate | 91,363 | 470,117 | 22,185 | - | 583,665 | |||||||||
| Variable rate | 7,507,333 | - | - | - | 7,507,333 | |||||||||
| Total premium finance receivables - life insurance | $ | 7,598,696 | $ | 470,117 | $ | 22,185 | $ | - | $ | 8,090,998 | ||||
| Consumer and other | ||||||||||||||
| Fixed rate | 12,335 | 5,032 | 11 | 482 | 17,860 | |||||||||
| Variable rate | 32,976 | - | - | - | 32,976 | |||||||||
| Total consumer and other | $ | 45,311 | $ | 5,032 | $ | 11 | $ | 482 | $ | 50,836 | ||||
| Total per category | ||||||||||||||
| Fixed rate | 6,817,037 | 5,914,728 | 2,252,235 | 1,091,921 | 16,075,921 | |||||||||
| Variable rate | 21,876,036 | 260,014 | 984,514 | - | 23,120,564 | |||||||||
| Total loans, net of unearned income | $ | 28,693,073 | $ | 6,174,742 | $ | 3,236,749 | $ | 1,091,921 | $ | 39,196,485 | ||||
| Variable Rate Loan Pricing by Index: | ||||||||||||||
| Prime | $ | 3,850,970 | ||||||||||||
| One- month LIBOR | 3,349,999 | |||||||||||||
| Three- month LIBOR | 122,551 | |||||||||||||
| Twelve- month LIBOR | 3,582,952 | |||||||||||||
| One- year CMT | 3,812,549 | |||||||||||||
| Other U.S. Treasury tenors | 84,837 | |||||||||||||
| SOFR tenors | 7,670,959 | |||||||||||||
| Ameribor tenors | 336,618 | |||||||||||||
| BSBY tenors | 39,185 | |||||||||||||
| Other | 269,944 | |||||||||||||
| Total variable rate | $ | 23,120,564 | ||||||||||||
LIBOR - London Interbank Offered Rate.
CMT - Constant Maturity Treasury Rate.
SOFR - Secured Overnight Financing Rate.
Ameribor - American Interbank Offered Rate.
BSBY - Bloomberg Short Term Bank Yield Index.
Graph available at the following link:
http://ml.globenewswire.com/Resource/Download/af5c30bf-cfcb-48dd-a1d5-f5753b798a27
Source: Bloomberg
As noted in the table on the previous page, the majority of the Company's portfolio is tied to LIBOR and SOFR indices which, as shown in the table above, do not mirror the same changes as the Prime rate which has historically moved when the Federal Reserve raises or lowers interest rates. Specifically, the Company has variable rate loans of $3.3 billion tied to one-month LIBOR, $3.6 billion tied to twelve-month LIBOR and $6.6 billion tied to one-month SOFR. The above chart shows:
| Basis Point (bp) Change in | |||||||||
| Prime | 1-month LIBOR | 12-month LIBOR | 1-month SOFR | ||||||
| Fourth Quarter 2022 | 125 | bps | 125 | bps | 70 | bps | 132 | bps | |
| Third Quarter 2022 | 150 | 135 | 116 | 135 | |||||
| Second Quarter 2022 | 125 | 134 | 152 | 139 | |||||
| First Quarter 2022 | 25 | 35 | 152 | 25 | |||||
| Fourth Quarter 2021 | 0 | 2 | 34 | -1 | |||||
TABLE 10: ALLOWANCE FOR CREDIT LOSSES
| Three Months Ended | Years Ended | ||||||||||||||||||||||||||
| Dec 31, | Sep 30, | Jun 30, | Mar 31, | Dec 31, | Dec 31, | Dec 31, | |||||||||||||||||||||
| (Dollars in thousands) | 2022 | 2022 | 2022 | 2022 | 2021 | 2022 | 2021 | ||||||||||||||||||||
| Allowance for credit losses at beginning of period | $ | 315,338 | $ | 312,192 | $ | 301,327 | $ | 299,731 | $ | 296,138 | $ | 299,731 | $ | 379,969 | |||||||||||||
| Provision for credit losses | 47,646 | 6,420 | 20,417 | 4,106 | 9,299 | 78,589 | (59,263 | ) | |||||||||||||||||||
| Initial allowance for credit losses recognized on PCD assets acquired during the period(1) | - | - | - | - | 470 | - | 470 | ||||||||||||||||||||
| Other adjustments | 31 | (105 | ) | (56 | ) | 22 | 5 | (108 | ) | 5 | |||||||||||||||||
| Charge-offs: | |||||||||||||||||||||||||||
| Commercial | 3,019 | 780 | 8,928 | 1,414 | 4,431 | 14,141 | 20,801 | ||||||||||||||||||||
| Commercial real estate | 538 | 24 | 40 | 777 | 495 | 1,379 | 3,293 | ||||||||||||||||||||
| Home equity | - | 43 | 192 | 197 | 135 | 432 | 336 | ||||||||||||||||||||
| Residential real estate | - | 5 | - | 466 | 1,067 | 471 | 1,082 | ||||||||||||||||||||
| Premium finance receivables - property & casualty | 3,629 | 6,037 | 2,903 | 1,671 | 2,314 | 14,240 | 9,020 | ||||||||||||||||||||
| Premium finance receivables - life insurance | 28 | - | - | 7 | - | 35 | - | ||||||||||||||||||||
| Consumer and other | - | 635 | 253 | 193 | 157 | 1,081 | 487 | ||||||||||||||||||||
| Total charge-offs | 7,214 | 7,524 | 12,316 | 4,725 | 8,599 | 31,779 | 35,019 | ||||||||||||||||||||
| Recoveries: | |||||||||||||||||||||||||||
| Commercial | 691 | 2,523 | 996 | 538 | 389 | 4,748 | 2,559 | ||||||||||||||||||||
| Commercial real estate | 61 | 55 | 553 | 32 | 217 | 701 | 1,304 | ||||||||||||||||||||
| Home equity | 65 | 38 | 123 | 93 | 461 | 319 | 1,203 | ||||||||||||||||||||
| Residential real estate | 6 | 60 | 6 | 5 | 85 | 77 | 330 | ||||||||||||||||||||
| Premium finance receivables - property & casualty | 1,279 | 1,648 | 1,119 | 1,476 | 1,240 | 5,522 | 7,989 | ||||||||||||||||||||
| Premium finance receivables - life insurance | - | - | - | - | - | - | - | ||||||||||||||||||||
| Consumer and other | 33 | 31 | 23 | 49 | 26 | 136 | 184 | ||||||||||||||||||||
| Total recoveries | 2,135 | 4,355 | 2,820 | 2,193 | 2,418 | 11,503 | 13,569 | ||||||||||||||||||||
| Net charge-offs | (5,079 | ) | (3,169 | ) | (9,496 | ) | (2,532 | ) | (6,181 | ) | (20,276 | ) | (21,450 | ) | |||||||||||||
| Allowance for credit losses at period end | $ | 357,936 | $ | 315,338 | $ | 312,192 | $ | 301,327 | $ | 299,731 | $ | 357,936 | $ | 299,731 | |||||||||||||
| Annualized net charge-offs (recoveries) by category as a percentage of its own respective category's average: | |||||||||||||||||||||||||||
| Commercial | 0.08 | % | (0.06) % | 0.27 | % | 0.03 | % | 0.14 | % | 0.08 | % | 0.16 | % | ||||||||||||||
| Commercial real estate | 0.02 | 0.00 | (0.02 | ) | 0.03 | 0.01 | 0.01 | 0.02 | |||||||||||||||||||
| Home equity | (0.08 | ) | 0.01 | 0.09 | 0.13 | (0.38 | ) | 0.03 | (0.23 | ) | |||||||||||||||||
| Residential real estate | 0.00 | (0.01 | ) | 0.00 | 0.11 | 0.25 | 0.02 | 0.05 | |||||||||||||||||||
| Premium finance receivables - property & casualty | 0.16 | 0.30 | 0.14 | 0.02 | 0.09 | 0.16 | 0.02 | ||||||||||||||||||||
| Premium finance receivables - life insurance | 0.00 | - | - | 0.00 | - | 0.00 | - | ||||||||||||||||||||
| Consumer and other | (0.16 | ) | 4.02 | 1.31 | 1.19 | 0.95 | 1.22 | 0.66 | |||||||||||||||||||
| Total loans, net of unearned income | 0.05 | % | 0.03 | % | 0.11 | % | 0.03 | % | 0.07 | % | 0.06 | % | 0.06 | % | |||||||||||||
| Loans at period end | $ | 39,196,485 | $ | 38,167,613 | $ | 37,053,103 | $ | 35,280,547 | $ | 34,789,104 | |||||||||||||||||
| Allowance for loan losses as a percentage of loans at period end | 0.69 | % | 0.64 | % | 0.68 | % | 0.71 | % | 0.71 | % | |||||||||||||||||
| Allowance for loan and unfunded lending-related commitment losses as a percentage of loans at period end | 0.91 | 0.83 | 0.84 | 0.85 | 0.86 | ||||||||||||||||||||||
(1)The initial allowance for credit losses on purchased credit deteriorated ("PCD") loans acquired during the period measured approximately $2.8 million, of which approximately $2.3 million was charged-off related to PCD loans that met the Company's charge-off policy at the time of acquisition. After considering these loans that were immediately charged-off, the net impact of PCD allowance for credit losses at the acquisition date was approximately $470,000.
TABLE 11: ALLOWANCE AND PROVISION FOR CREDIT LOSSES BY COMPONENT
| Three Months Ended | Years Ended | ||||||||||||||||||||||||
| Dec 31, | Sep 30, | Jun 30, | Mar 31, | Dec 31, | Dec 31, | Dec 31, | |||||||||||||||||||
| (In thousands) | 2022 | 2022 | 2022 | 2022 | 2021 | 2022 | 2021 | ||||||||||||||||||
| Provision for loan losses | $ | 29,110 | $ | (2,385 | ) | $ | 10,782 | $ | 5,214 | $ | 4,929 | $ | 42,721 | $ | (50,563 | ) | |||||||||
| Provision for unfunded lending-related commitments losses | 18,358 | 8,578 | 9,711 | (1,189 | ) | 4,375 | 35,458 | (8,717 | ) | ||||||||||||||||
| Provision for held-to-maturity securities losses | 178 | 227 | (76 | ) | 81 | (5 | ) | 410 | 17 | ||||||||||||||||
| Provision for credit losses | $ | 47,646 | $ | 6,420 | $ | 20,417 | $ | 4,106 | $ | 9,299 | $ | 78,589 | $ | (59,263 | ) | ||||||||||
| Allowance for loan losses | $ | 270,173 | $ | 246,110 | $ | 251,769 | $ | 250,539 | $ | 247,835 | |||||||||||||||
| Allowance for unfunded lending-related commitments losses | 87,275 | 68,918 | 60,340 | 50,629 | 51,818 | ||||||||||||||||||||
| Allowance for loan losses and unfunded lending-related commitments losses | 357,448 | 315,028 | 312,109 | 301,168 | 299,653 | ||||||||||||||||||||
| Allowance for held-to-maturity securities losses | 488 | 310 | 83 | 159 | 78 | ||||||||||||||||||||
| Allowance for credit losses | $ | 357,936 | $ | 315,338 | $ | 312,192 | $ | 301,327 | $ | 299,731 | |||||||||||||||
TABLE 12: ALLOWANCE BY LOAN PORTFOLIO
The table below summarizes the calculation of allowance for loan losses and allowance for unfunded lending-related commitments losses for the Company's loan portfolios as well as core and niche portfolios, as of December 31, 2022, September 30, 2022 and June 30, 2022.
| As of Dec 31, 2022 | As of Sep 30, 2022 | As of Jun 30, 2022 | ||||||||||||||||||||||
| (Dollars in thousands) | Recorded Investment | Calculated Allowance | % of its category's balance | Recorded Investment | Calculated Allowance | % of its category's balance | Recorded Investment | Calculated Allowance | % of its category's balance | |||||||||||||||
| Commercial: | ||||||||||||||||||||||||
| Commercial, industrial and other, excluding PPP loans | $ | 12,520,241 | $ | 142,769 | 1.14 | % | $ | 12,215,592 | $ | 135,315 | 1.11 | % | $ | 11,965,016 | $ | 142,916 | 1.19 | % | ||||||
| Commercial PPP loans | 28,923 | 0 | 0.00 | 43,658 | 1 | 0.00 | 82,089 | 3 | 0.00 | |||||||||||||||
| Commercial real estate: | ||||||||||||||||||||||||
| Construction and development | 1,486,930 | 75,907 | 5.10 | 1,525,511 | 51,389 | 3.37 | 1,506,318 | 45,522 | 3.02 | |||||||||||||||
| Non-construction | 8,464,017 | 108,445 | 1.28 | 8,052,673 | 99,329 | 1.23 | 7,900,887 | 98,210 | 1.24 | |||||||||||||||
| Home equity | 332,698 | 7,573 | 2.28 | 328,822 | 7,055 | 2.15 | 325,826 | 6,990 | 2.15 | |||||||||||||||
| Residential real estate | 2,372,383 | 11,585 | 0.49 | 2,235,459 | 11,023 | 0.49 | 2,078,907 | 10,479 | 0.50 | |||||||||||||||
| Premium finance receivables | ||||||||||||||||||||||||
| Commercial insurance loans | 5,849,459 | 9,967 | 0.17 | 5,713,340 | 9,736 | 0.17 | 5,541,447 | 6,840 | 0.12 | |||||||||||||||
| Life insurance loans | 8,090,998 | 704 | 0.01 | 8,004,856 | 696 | 0.01 | 7,608,433 | 662 | 0.01 | |||||||||||||||
| Consumer and other | 50,836 | 498 | 0.98 | 47,702 | 484 | 1.01 | 44,180 | 487 | 1.10 | |||||||||||||||
| Total loans, net of unearned income | $ | 39,196,485 | $ | 357,448 | 0.91 | % | $ | 38,167,613 | $ | 315,028 | 0.83 | % | $ | 37,053,103 | $ | 312,109 | 0.84 | % | ||||||
| Total loans, net of unearned income, excluding PPP loans | $ | 39,167,562 | $ | 357,448 | 0.91 | % | $ | 38,123,955 | $ | 315,027 | 0.83 | % | $ | 36,971,014 | $ | 312,106 | 0.84 | % | ||||||
| Total core loans(1) | $ | 22,490,701 | $ | 320,403 | 1.42 | % | $ | 21,697,055 | $ | 273,947 | 1.26 | % | $ | 20,994,470 | $ | 275,188 | 1.31 | % | ||||||
| Total niche loans(1) | 16,676,861 | 37,045 | 0.22 | 16,426,900 | 41,080 | 0.25 | 15,976,544 | 36,918 | 0.23 | |||||||||||||||
| Total PPP loans | 28,923 | 0 | 0.00 | 43,658 | 1 | 0.00 | 82,089 | 3 | 0.00 | |||||||||||||||
(1)See Table 1 for additional detail on core and niche loans.
TABLE 13: LOAN PORTFOLIO AGING
| (In thousands) | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | ||||||||||
| Loan Balances: | |||||||||||||||
| Commercial | |||||||||||||||
| Nonaccrual | $ | 35,579 | $ | 44,293 | $ | 32,436 | $ | 16,878 | $ | 20,399 | |||||
| 90+ days and still accruing | 462 | 237 | - | - | 15 | ||||||||||
| 60-89 days past due | 21,128 | 24,641 | 16,789 | 1,294 | 24,262 | ||||||||||
| 30-59 days past due | 56,696 | 34,917 | 14,120 | 31,889 | 43,861 | ||||||||||
| Current | 12,435,299 | 12,155,162 | 11,983,760 | 11,533,902 | 11,815,531 | ||||||||||
| Total commercial | $ | 12,549,164 | $ | 12,259,250 | $ | 12,047,105 | $ | 11,583,963 | $ | 11,904,068 | |||||
| Commercial real estate | |||||||||||||||
| Nonaccrual | $ | 6,387 | $ | 10,477 | $ | 10,718 | $ | 12,301 | $ | 21,746 | |||||
| 90+ days and still accruing | - | - | - | - | - | ||||||||||
| 60-89 days past due | 2,244 | 6,041 | 6,771 | 2,648 | 284 | ||||||||||
| 30-59 days past due | 30,675 | 29,971 | 34,220 | 30,141 | 40,443 | ||||||||||
| Current | 9,911,641 | 9,531,695 | 9,355,496 | 9,189,984 | 8,927,813 | ||||||||||
| Total commercial real estate | $ | 9,950,947 | $ | 9,578,184 | $ | 9,407,205 | $ | 9,235,074 | $ | 8,990,286 | |||||
| Home equity | |||||||||||||||
| Nonaccrual | $ | 1,487 | $ | 1,320 | $ | 1,084 | $ | 1,747 | $ | 2,574 | |||||
| 90+ days and still accruing | - | - | - | - | - | ||||||||||
| 60-89 days past due | - | 125 | 154 | 199 | - | ||||||||||
| 30-59 days past due | 2,152 | 848 | 930 | 545 | 1,120 | ||||||||||
| Current | 329,059 | 326,529 | 323,658 | 318,944 | 331,461 | ||||||||||
| Total home equity | $ | 332,698 | $ | 328,822 | $ | 325,826 | $ | 321,435 | $ | 335,155 | |||||
| Residential real estate | |||||||||||||||
| Early buy-out loans guaranteed by U.S. government agencies(1) | $ | 164,788 | $ | 148,664 | 113,856 | $ | 50,096 | $ | 30,828 | ||||||
| Nonaccrual | 10,171 | 9,787 | 8,330 | 7,262 | 16,440 | ||||||||||
| 90+ days and still accruing | - | - | - | - | - | ||||||||||
| 60-89 days past due | 4,364 | 2,149 | 534 | 293 | 982 | ||||||||||
| 30-59 days past due | 9,982 | 15 | 147 | 18,808 | 12,145 | ||||||||||
| Current | 2,183,078 | 2,074,844 | 1,956,040 | 1,723,526 | 1,576,704 | ||||||||||
| Total residential real estate | $ | 2,372,383 | $ | 2,235,459 | $ | 2,078,907 | $ | 1,799,985 | $ | 1,637,099 | |||||
| Premium finance receivables - property & casualty | |||||||||||||||
| Nonaccrual | $ | 13,470 | $ | 13,026 | $ | 13,303 | $ | 6,707 | $ | 5,433 | |||||
| 90+ days and still accruing | 15,841 | 16,624 | 6,447 | 12,363 | 7,210 | ||||||||||
| 60-89 days past due | 14,926 | 15,301 | 15,299 | 8,890 | 15,490 | ||||||||||
| 30-59 days past due | 40,557 | 21,128 | 23,313 | 21,278 | 22,419 | ||||||||||
| Current | 5,764,665 | 5,647,261 | 5,483,085 | 4,888,170 | 4,804,935 | ||||||||||
| Total Premium finance receivables - property & casualty | $ | 5,849,459 | $ | 5,713,340 | $ | 5,541,447 | $ | 4,937,408 | $ | 4,855,487 | |||||
| Premium finance receivables - life insurance | |||||||||||||||
| Nonaccrual | $ | - | $ | - | $ | - | $ | - | $ | - | |||||
| 90+ days and still accruing | 17,245 | 1,831 | - | - | 7 | ||||||||||
| 60-89 days past due | 5,260 | 13,628 | 1,796 | 22,401 | 12,614 | ||||||||||
| 30-59 days past due | 68,725 | 44,954 | 65,155 | 15,522 | 66,651 | ||||||||||
| Current | 7,999,768 | 7,944,443 | 7,541,482 | 7,316,240 | 6,963,538 | ||||||||||
| Total Premium finance receivables - life insurance | $ | 8,090,998 | $ | 8,004,856 | $ | 7,608,433 | $ | 7,354,163 | $ | 7,042,810 | |||||
| Consumer and other | |||||||||||||||
| Nonaccrual | $ | 6 | $ | 7 | $ | 8 | $ | 4 | $ | 477 | |||||
| 90+ days and still accruing | 49 | 31 | 25 | 43 | 137 | ||||||||||
| 60-89 days past due | 18 | 26 | 8 | 5 | 34 | ||||||||||
| 30-59 days past due | 224 | 343 | 119 | 221 | 509 | ||||||||||
| Current | 50,539 | 47,295 | 44,020 | 48,246 | 23,042 | ||||||||||
| Total consumer and other | $ | 50,836 | $ | 47,702 | $ | 44,180 | $ | 48,519 | $ | 24,199 | |||||
| Total loans, net of unearned income | |||||||||||||||
| Early buy-out loans guaranteed by U.S. government agencies(1) | $ | 164,788 | $ | 148,664 | $ | 113,856 | $ | 50,096 | $ | 30,828 | |||||
| Nonaccrual | 67,100 | 78,910 | 65,879 | 44,899 | 67,069 | ||||||||||
| 90+ days and still accruing | 33,597 | 18,723 | 6,472 | 12,406 | 7,369 | ||||||||||
| 60-89 days past due | 47,940 | 61,911 | 41,351 | 35,730 | 53,666 | ||||||||||
| 30-59 days past due | 209,011 | 132,176 | 138,004 | 118,404 | 187,148 | ||||||||||
| Current | 38,674,049 | 37,727,229 | 36,687,541 | 35,019,012 | 34,443,024 | ||||||||||
| Total loans, net of unearned income | $ | 39,196,485 | $ | 38,167,613 | $ | 37,053,103 | $ | 35,280,547 | $ | 34,789,104 | |||||
(1)Early buy-out loans are insured or guaranteed by the Federal Housing Administration or the U.S. Department of Veterans Affairs, subject to indemnifications and insurance limits for certain loans.
TABLE 14: NON-PERFORMING ASSETS(1) AND TROUBLED DEBT RESTRUCTURINGS ("TDRs")
| Dec 31, | Sep 30, | Jun 30, | Mar 31, | Dec 31, | |||||||||||||||
| (Dollars in thousands) | 2022 | 2022 | 2022 | 2022 | 2021 | ||||||||||||||
| Loans past due greater than 90 days and still accruing(2): | |||||||||||||||||||
| Commercial | $ | 462 | $ | 237 | $ | - | $ | - | $ | 15 | |||||||||
| Commercial real estate | - | - | - | - | - | ||||||||||||||
| Home equity | - | - | - | - | - | ||||||||||||||
| Residential real estate | - | - | - | - | - | ||||||||||||||
| Premium finance receivables - property & casualty | 15,841 | 16,624 | 6,447 | 12,363 | 7,210 | ||||||||||||||
| Premium finance receivables - life insurance | 17,245 | 1,831 | - | - | 7 | ||||||||||||||
| Consumer and other | 49 | 31 | 25 | 43 | 137 | ||||||||||||||
| Total loans past due greater than 90 days and still accruing | 33,597 | 18,723 | 6,472 | 12,406 | 7,369 | ||||||||||||||
| Non-accrual loans: | |||||||||||||||||||
| Commercial | 35,579 | 44,293 | 32,436 | 16,878 | 20,399 | ||||||||||||||
| Commercial real estate | 6,387 | 10,477 | 10,718 | 12,301 | 21,746 | ||||||||||||||
| Home equity | 1,487 | 1,320 | 1,084 | 1,747 | 2,574 | ||||||||||||||
| Residential real estate | 10,171 | 9,787 | 8,330 | 7,262 | 16,440 | ||||||||||||||
| Premium finance receivables - property & casualty | 13,470 | 13,026 | 13,303 | 6,707 | 5,433 | ||||||||||||||
| Premium finance receivables - life insurance | - | - | - | - | - | ||||||||||||||
| Consumer and other | 6 | 7 | 8 | 4 | 477 | ||||||||||||||
| Total non-accrual loans | 67,100 | 78,910 | 65,879 | 44,899 | 67,069 | ||||||||||||||
| Total non-performing loans: | |||||||||||||||||||
| Commercial | 36,041 | 44,530 | 32,436 | 16,878 | 20,414 | ||||||||||||||
| Commercial real estate | 6,387 | 10,477 | 10,718 | 12,301 | 21,746 | ||||||||||||||
| Home equity | 1,487 | 1,320 | 1,084 | 1,747 | 2,574 | ||||||||||||||
| Residential real estate | 10,171 | 9,787 | 8,330 | 7,262 | 16,440 | ||||||||||||||
| Premium finance receivables - property & casualty | 29,311 | 29,650 | 19,750 | 19,070 | 12,643 | ||||||||||||||
| Premium finance receivables - life insurance | 17,245 | 1,831 | - | - | 7 | ||||||||||||||
| Consumer and other | 55 | 38 | 33 | 47 | 614 | ||||||||||||||
| Total non-performing loans | $ | 100,697 | $ | 97,633 | $ | 72,351 | $ | 57,305 | $ | 74,438 | |||||||||
| Other real estate owned | 8,589 | 5,376 | 5,574 | 4,978 | 1,959 | ||||||||||||||
| Other real estate owned - from acquisitions | 1,311 | 1,311 | 1,265 | 1,225 | 2,312 | ||||||||||||||
| Other repossessed assets | - | - | - | - | - | ||||||||||||||
| Total non-performing assets | $ | 110,597 | $ | 104,320 | $ | 79,190 | $ | 63,508 | $ | 78,709 | |||||||||
| Accruing TDRs not included within non-performing assets | $ | 36,620 | $ | 34,238 | $ | 36,184 | $ | 35,922 | $ | 37,486 | |||||||||
| Total non-performing loans by category as a percent of its own respective category's period-end balance: | |||||||||||||||||||
| Commercial | 0.29 | % | 0.36 | % | 0.27 | % | 0.15 | % | 0.17 | % | |||||||||
| Commercial real estate | 0.06 | 0.11 | 0.11 | 0.13 | 0.24 | ||||||||||||||
| Home equity | 0.45 | 0.40 | 0.33 | 0.54 | 0.77 | ||||||||||||||
| Residential real estate | 0.43 | 0.44 | 0.40 | 0.40 | 1.00 | ||||||||||||||
| Premium finance receivables - property & casualty | 0.50 | 0.52 | 0.36 | 0.39 | 0.26 | ||||||||||||||
| Premium finance receivables - life insurance | 0.21 | 0.02 | - | - | 0.00 | ||||||||||||||
| Consumer and other | 0.11 | 0.08 | 0.07 | 0.10 | 2.54 | ||||||||||||||
| Total loans, net of unearned income | 0.26 | % | 0.26 | % | 0.20 | % | 0.16 | % | 0.21 | % | |||||||||
| Total non-performing assets as a percentage of total assets | 0.21 | % | 0.20 | % | 0.16 | % | 0.13 | % | 0.16 | % | |||||||||
| Allowance for loan losses and unfunded lending-related commitments losses as a percentage of non-accrual loans | 532.71 | % | 399.22 | % | 473.76 | % | 670.77 | % | 446.78 | % | |||||||||
(1)Excludes early buy-out loans guaranteed by U.S. government agencies. Early buy-out loans are insured or guaranteed by the Federal Housing Administration or the U.S. Department of Veterans Affairs, subject to indemnifications and insurance limits for certain loans.
(2)As of December 31, 2022, no TDRs were past due greater than 90 days and still accruing. As of September 30, 2022, June 30, 2022, March 31, 2022, and December 31, 2021, approximately $1.1 million,$541,000, $320,000 and $320,000, respectively, of TDRs were past due greater than 90 days and still accruing interest.
Non-performing Loans Rollforward, excluding early buy-out loans guaranteed by U.S. government agencies
| Three Months Ended | Years Ended | |||||||||||||||||||||||||
| Dec 31, | Sep 30, | Jun 30, | Mar 31, | Dec 31, | Dec 31, | Dec 31, | ||||||||||||||||||||
| (In thousands) | 2022 | 2022 | 2022 | 2022 | 2021 | 2022 | 2021 | |||||||||||||||||||
| Balance at beginning of period | $ | 97,633 | $ | 72,351 | $ | 57,305 | $ | 74,438 | $ | 90,041 | $ | 74,438 | $ | 127,513 | ||||||||||||
| Additions from becoming non-performing in the respective period | 10,027 | 35,234 | 22,841 | 4,141 | 6,851 | 72,243 | 38,848 | |||||||||||||||||||
| Return to performing status | (1,167 | ) | (154 | ) | (1,000 | ) | (729 | ) | (6,616 | ) | (3,050 | ) | (10,592 | ) | ||||||||||||
| Payments received | (16,351 | ) | (20,417 | ) | (4,029 | ) | (20,139 | ) | (13,212 | ) | (60,936 | ) | (53,823 | ) | ||||||||||||
| Transfer to OREO and other repossessed assets | (3,365 | ) | (185 | ) | (1,611 | ) | (4,377 | ) | (275 | ) | (9,538 | ) | (6,027 | ) | ||||||||||||
| Charge-offs, net | (1,363 | ) | (341 | ) | (1,969 | ) | (2,354 | ) | (5,167 | ) | (6,027 | ) | (13,351 | ) | ||||||||||||
| Net change for niche loans(1) | 15,283 | 11,145 | 814 | 6,325 | 2,816 | 33,567 | (8,130 | ) | ||||||||||||||||||
| Balance at end of period | $ | 100,697 | $ | 97,633 | $ | 72,351 | $ | 57,305 | $ | 74,438 | $ | 100,697 | $ | 74,438 | ||||||||||||
(1)Includes activity for premium finance receivables and indirect consumer loans.
TDRs
| Dec 31, | Sep 30, | Jun 30, | Mar 31, | Dec 31, | ||||||||||
| (In thousands) | 2022 | 2022 | 2022 | 2022 | 2021 | |||||||||
| Accruing TDRs: | ||||||||||||||
| Commercial | $ | 2,462 | $ | 2,254 | $ | 2,456 | $ | 2,773 | $ | 4,131 | ||||
| Commercial real estate | 15,048 | 8,967 | 9,659 | 10,068 | 8,421 | |||||||||
| Residential real estate and other | 19,110 | 23,017 | 24,069 | 23,081 | 24,934 | |||||||||
| Total accrual | $ | 36,620 | $ | 34,238 | $ | 36,184 | $ | 35,922 | $ | 37,486 | ||||
| Non-accrual TDRs:(1) | ||||||||||||||
| Commercial | $ | 345 | $ | 4,599 | $ | 4,786 | $ | 4,935 | $ | 6,746 | ||||
| Commercial real estate | 1,823 | 1,880 | 1,955 | 2,050 | 2,050 | |||||||||
| Residential real estate and other | 2,311 | 2,516 | 2,453 | 1,964 | 3,027 | |||||||||
| Total non-accrual | $ | 4,479 | $ | 8,995 | $ | 9,194 | $ | 8,949 | $ | 11,823 | ||||
| Total TDRs: | ||||||||||||||
| Commercial | $ | 2,807 | $ | 6,853 | $ | 7,242 | $ | 7,708 | $ | 10,877 | ||||
| Commercial real estate | 16,871 | 10,847 | 11,614 | 12,118 | 10,471 | |||||||||
| Residential real estate and other | 21,421 | 25,533 | 26,522 | 25,045 | 27,961 | |||||||||
| Total TDRs | $ | 41,099 | $ | 43,233 | $ | 45,378 | $ | 44,871 | $ | 49,309 | ||||
(1)Included in total non-performing loans.
Other Real Estate Owned
| Three Months Ended | |||||||||||||||||||
| Dec 31, | Sep 30, | Jun 30, | Mar 31, | Dec 31, | |||||||||||||||
| (In thousands) | 2022 | 2022 | 2022 | 2022 | 2021 | ||||||||||||||
| Balance at beginning of period | $ | 6,687 | $ | 6,839 | $ | 6,203 | $ | 4,271 | $ | 13,845 | |||||||||
| Disposals/resolved | (152 | ) | (133 | ) | (1,172 | ) | (2,497 | ) | (9,664 | ) | |||||||||
| Transfers in at fair value, less costs to sell | 3,365 | 134 | 2,090 | 4,429 | 275 | ||||||||||||||
| Fair value adjustments | - | (153 | ) | (282 | ) | - | (185 | ) | |||||||||||
| Balance at end of period | $ | 9,900 | $ | 6,687 | $ | 6,839 | $ | 6,203 | $ | 4,271 | |||||||||
| Period End | |||||||||||||||||||
| Dec 31, | Sep 30, | Jun 30, | Mar 31, | Dec 31, | |||||||||||||||
| Balance by Property Type: | 2022 | 2022 | 2022 | 2022 | 2021 | ||||||||||||||
| Residential real estate | $ | 1,585 | $ | 1,585 | $ | 1,630 | $ | 1,127 | $ | 1,310 | |||||||||
| Residential real estate development | - | - | 133 | - | - | ||||||||||||||
| Commercial real estate | 8,315 | 5,102 | 5,076 | 5,076 | 2,961 | ||||||||||||||
| Total | $ | 9,900 | $ | 6,687 | $ | 6,839 | $ | 6,203 | $ | 4,271 | |||||||||
TABLE 15: NON-INTEREST INCOME
| Three Months Ended | Q4 2022 compared to Q3 2022 | Q4 2022 compared to Q4 2021 | |||||||||||||||||||||||||||||||
| Dec 31, | Sep 30, | Jun 30, | Mar 31, | Dec 31, | |||||||||||||||||||||||||||||
| (Dollars in thousands) | 2022 | 2022 | 2022 | 2022 | 2021 | $ Change | % Change | $ Change | % Change | ||||||||||||||||||||||||
| Brokerage | $ | 4,177 | $ | 4,587 | $ | 4,272 | $ | 4,632 | $ | 5,292 | $ | (410 | ) | (9 | )% | $ | (1,115 | ) | (21 | )% | |||||||||||||
| Trust and asset management | 26,550 | 28,537 | 27,097 | 26,762 | 27,197 | (1,987 | ) | (7 | ) | (647 | ) | (2 | ) | ||||||||||||||||||||
| Total wealth management | 30,727 | 33,124 | 31,369 | 31,394 | 32,489 | (2,397 | ) | (7 | ) | (1,762 | ) | (5 | ) | ||||||||||||||||||||
| Mortgage banking | 17,407 | 27,221 | 33,314 | 77,231 | 53,138 | (9,814 | ) | (36 | ) | (35,731 | ) | (67 | ) | ||||||||||||||||||||
| Service charges on deposit accounts | 13,054 | 14,349 | 15,888 | 15,283 | 14,734 | (1,295 | ) | (9 | ) | (1,680 | ) | (11 | ) | ||||||||||||||||||||
| Losses on investment securities, net | (6,745 | ) | (3,103 | ) | (7,797 | ) | (2,782 | ) | (1,067 | ) | (3,642 | ) | NM | (5,678 | ) | NM | |||||||||||||||||
| Fees from covered call options | 7,956 | 1,366 | 1,069 | 3,742 | 1,128 | 6,590 | NM | 6,828 | NM | ||||||||||||||||||||||||
| Trading (losses) gains, net | (306 | ) | (7 | ) | 176 | 3,889 | 206 | (299 | ) | NM | (512 | ) | NM | ||||||||||||||||||||
| Operating lease income, net | 12,384 | 12,644 | 15,007 | 15,475 | 14,204 | (260 | ) | (2 | ) | (1,820 | ) | (13 | ) | ||||||||||||||||||||
| Other: | |||||||||||||||||||||||||||||||||
| Interest rate swap fees | 2,319 | 1,997 | 3,300 | 4,569 | 3,526 | 322 | 16 | (1,207 | ) | (34 | ) | ||||||||||||||||||||||
| BOLI | 1,394 | 248 | (884 | ) | 48 | 1,192 | 1,146 | NM | 202 | 17 | |||||||||||||||||||||||
| Administrative services | 1,736 | 1,533 | 1,591 | 1,853 | 1,846 | 203 | 13 | (110 | ) | (6 | ) | ||||||||||||||||||||||
| Foreign currency remeasurement gains (losses) | 277 | (93 | ) | 97 | 11 | 111 | 370 | NM | 166 | NM | |||||||||||||||||||||||
| Early pay-offs of capital leases | 131 | 138 | 160 | 265 | 249 | (7 | ) | (5 | ) | (118 | ) | (47 | ) | ||||||||||||||||||||
| Miscellaneous | 13,505 | 12,065 | 9,652 | 11,812 | 12,011 | 1,440 | 12 | 1,494 | 12 | ||||||||||||||||||||||||
| Total Other | 19,362 | 15,888 | 13,916 | 18,558 | 18,935 | 3,474 | 22 | 427 | 2 | ||||||||||||||||||||||||
| Total Non-Interest Income | $ | 93,839 | $ | 101,482 | $ | 102,942 | $ | 162,790 | $ | 133,767 | $ | (7,643 | ) | (8 | )% | $ | (39,928 | ) | (30 | )% | |||||||||||||
NM - Not meaningful.
BOLI - Bank-owned life insurance.
| Years Ended | ||||||||||||||
| Dec 31, | Dec 31, | $ | % | |||||||||||
| (Dollars in thousands) | 2022 | 2021 | Change | Change | ||||||||||
| Brokerage | $ | 17,668 | $ | 20,710 | $ | (3,042 | ) | (15 | )% | |||||
| Trust and asset management | 108,946 | 103,309 | 5,637 | 5 | ||||||||||
| Total wealth management | 126,614 | 124,019 | 2,595 | 2 | ||||||||||
| Mortgage banking | 155,173 | 273,010 | (117,837 | ) | (43 | ) | ||||||||
| Service charges on deposit accounts | 58,574 | 54,168 | 4,406 | 8 | ||||||||||
| Losses on investment securities, net | (20,427 | ) | (1,059 | ) | (19,368 | ) | NM | |||||||
| Fees from covered call options | 14,133 | 3,673 | 10,460 | NM | ||||||||||
| Trading gains, net | 3,752 | 245 | 3,507 | NM | ||||||||||
| Operating lease income, net | 55,510 | 53,691 | 1,819 | 3 | ||||||||||
| Other: | ||||||||||||||
| Interest rate swap fees | 12,185 | 13,702 | (1,517 | ) | (11 | ) | ||||||||
| BOLI | 806 | 5,812 | (5,006 | ) | (86 | ) | ||||||||
| Administrative services | 6,713 | 5,689 | 1,024 | 18 | ||||||||||
| Foreign currency remeasurement gains (losses) | 292 | (495 | ) | 787 | NM | |||||||||
| Early pay-offs of leases | 694 | 601 | 93 | 15 | ||||||||||
| Miscellaneous | 47,034 | 53,064 | (6,030 | ) | (11 | ) | ||||||||
| Total Other | 67,724 | 78,373 | (10,649 | ) | (14 | ) | ||||||||
| Total Non-Interest Income | $ | 461,053 | $ | 586,120 | $ | (125,067 | ) | (21 | )% | |||||
NM - Not meaningful.
BOLI - Bank-owned life insurance.
TABLE 16: NON-INTEREST EXPENSE
| Three Months Ended | Q4 2022 compared to Q3 2022 | Q4 2022 compared to Q4 2021 | ||||||||||||||||||||||||||||
| Dec 31, | Sep 30, | Jun 30, | Mar 31, | Dec 31, | ||||||||||||||||||||||||||
| (Dollars in thousands) | 2022 | 2022 | 2022 | 2022 | 2021 | $ Change | % Change | $ Change | % Change | |||||||||||||||||||||
| Salaries and employee benefits: | ||||||||||||||||||||||||||||||
| Salaries | $ | 100,232 | $ | 97,419 | $ | 92,414 | $ | 92,116 | $ | 91,612 | $ | 2,813 | 3 | % | $ | 8,620 | 9 | % | ||||||||||||
| Commissions and incentive compensation | 49,546 | 50,403 | 46,131 | 51,793 | 49,923 | (857 | ) | (2 | ) | (377 | ) | (1 | ) | |||||||||||||||||
| Benefits | 30,553 | 28,273 | 28,781 | 28,446 | 25,596 | 2,280 | 8 | 4,957 | 19 | |||||||||||||||||||||
| Total salaries and employee benefits | 180,331 | 176,095 | 167,326 | 172,355 | 167,131 | 4,236 | 2 | 13,200 | 8 | |||||||||||||||||||||
| Software and equipment | 24,699 | 24,126 | 24,250 | 22,810 | 23,708 | 573 | 2 | 991 | 4 | |||||||||||||||||||||
| Operating lease equipment | 10,078 | 9,448 | 8,774 | 9,708 | 10,147 | 630 | 7 | (69 | ) | (1 | ) | |||||||||||||||||||
| Occupancy, net | 17,763 | 17,727 | 17,651 | 17,824 | 18,343 | 36 | 0 | (580 | ) | (3 | ) | |||||||||||||||||||
| Data processing | 7,927 | 7,767 | 8,010 | 7,505 | 7,207 | 160 | 2 | 720 | 10 | |||||||||||||||||||||
| Advertising and marketing | 14,279 | 16,600 | 16,615 | 11,924 | 13,981 | (2,321 | ) | (14 | ) | 298 | 2 | |||||||||||||||||||
| Professional fees | 9,267 | 7,544 | 7,876 | 8,401 | 7,551 | 1,723 | 23 | 1,716 | 23 | |||||||||||||||||||||
| Amortization of other acquisition-related intangible assets | 1,436 | 1,492 | 1,579 | 1,609 | 1,811 | (56 | ) | (4 | ) | (375 | ) | (21 | ) | |||||||||||||||||
| FDIC insurance | 6,775 | 7,186 | 6,949 | 7,729 | 7,317 | (411 | ) | (6 | ) | (542 | ) | (7 | ) | |||||||||||||||||
| OREO expense, net | 369 | 229 | 294 | (1,032 | ) | (641 | ) | 140 | 61 | 1,010 | NM | |||||||||||||||||||
| Other: | ||||||||||||||||||||||||||||||
| Lending expenses, net of deferred origination costs | 4,951 | 4,533 | 4,270 | 6,821 | 5,525 | 418 | 9 | (574 | ) | (10 | ) | |||||||||||||||||||
| Travel and entertainment | 5,681 | 4,252 | 3,897 | 2,676 | 3,782 | 1,429 | 34 | 1,899 | 50 | |||||||||||||||||||||
| Miscellaneous | 24,280 | 19,470 | 21,177 | 15,968 | 17,537 | 4,810 | 25 | 6,743 | 38 | |||||||||||||||||||||
| Total other | 34,912 | 28,255 | 29,344 | 25,465 | 26,844 | 6,657 | 24 | 8,068 | 30 | |||||||||||||||||||||
| Total Non-Interest Expense | $ | 307,836 | $ | 296,469 | $ | 288,668 | $ | 284,298 | $ | 283,399 | $ | 11,367 | 4 | % | $ | 24,437 | 9 | % | ||||||||||||
NM - Not meaningful.
| Years Ended | ||||||||||||||
| Dec 31, | Dec 31, | $ | % | |||||||||||
| (Dollars in thousands) | 2022 | 2021 | Change | Change | ||||||||||
| Salaries and employee benefits: | ||||||||||||||
| Salaries | $ | 382,181 | $ | 361,915 | $ | 20,266 | 6 | % | ||||||
| Commissions and incentive compensation | 197,873 | 222,067 | (24,194 | ) | (11 | ) | ||||||||
| Benefits | 116,053 | 107,687 | 8,366 | 8 | ||||||||||
| Total salaries and employee benefits | 696,107 | 691,669 | 4,438 | 1 | ||||||||||
| Software and equipment | 95,885 | 87,515 | 8,370 | 10 | ||||||||||
| Operating lease equipment | 38,008 | 40,880 | (2,872 | ) | (7 | ) | ||||||||
| Occupancy, net | 70,965 | 74,184 | (3,219 | ) | (4 | ) | ||||||||
| Data processing | 31,209 | 27,279 | 3,930 | 14 | ||||||||||
| Advertising and marketing | 59,418 | 47,275 | 12,143 | 26 | ||||||||||
| Professional fees | 33,088 | 29,494 | 3,594 | 12 | ||||||||||
| Amortization of other acquisition-related intangible assets | 6,116 | 7,734 | (1,618 | ) | (21 | ) | ||||||||
| FDIC insurance | 28,639 | 27,030 | 1,609 | 6 | ||||||||||
| OREO expense, net | (140 | ) | (1,654 | ) | 1,514 | (92 | ) | |||||||
| Other: | ||||||||||||||
| Lending expenses, net of deferred origination costs | 20,575 | 22,794 | (2,219 | ) | (10 | ) | ||||||||
| Travel and entertainment | 16,506 | 10,048 | 6,458 | 64 | ||||||||||
| Miscellaneous | 80,895 | 68,296 | 12,599 | 18 | ||||||||||
| Total other | 117,976 | 101,138 | 16,838 | 17 | ||||||||||
| Total Non-Interest Expense | $ | 1,177,271 | $ | 1,132,544 | $ | 44,727 | 4 | % | ||||||
TABLE 17: SUPPLEMENTAL NON-GAAP FINANCIAL MEASURES/RATIOS
The accounting and reporting policies of Wintrust conform to generally accepted accounting principles ("GAAP") in the United States and prevailing practices in the banking industry. However, certain non-GAAP performance measures and ratios are used by management to evaluate and measure the Company's performance. These include taxable-equivalent net interest income (including its individual components), taxable-equivalent net interest margin (including its individual components), the taxable-equivalent efficiency ratio, tangible common equity ratio, tangible book value per common share, return on average tangible common equity, pre-tax income, excluding provision for credit losses, and pre-tax income, excluding provision for credit losses, adjusted for changes in fair value of MSRs, net of economic hedge and early buy-out loans guaranteed by U.S. government agencies. Management believes that these measures and ratios provide users of the Company's financial information a more meaningful view of the performance of the Company's interest-earning assets and interest-bearing liabilities and of the Company's operating efficiency. Other financial holding companies may define or calculate these measures and ratios differently.
Management reviews yields on certain asset categories and the net interest margin of the Company and its banking subsidiaries on a fully taxable-equivalent basis. In this non-GAAP presentation, net interest income is adjusted to reflect tax-exempt interest income on an equivalent before-tax basis using tax rates effective as of the end of the period. This measure ensures comparability of net interest income arising from both taxable and tax-exempt sources. Net interest income on a fully taxable-equivalent basis is also used in the calculation of the Company's efficiency ratio. The efficiency ratio, which is calculated by dividing non-interest expense by total taxable-equivalent net revenue (less securities gains or losses), measures how much it costs to produce one dollar of revenue. Securities gains or losses are excluded from this calculation to better match revenue from daily operations to operational expenses. Management considers the tangible common equity ratio and tangible book value per common share as useful measurements of the Company's equity. The Company references the return on average tangible common equity as a measurement of profitability. Management considers pre-tax income, excluding provision for credit losses, and pre-tax income, excluding provision for credit losses, adjusted for changes in fair value of MSRs, net of economic hedge and early buy-out loans guaranteed by U.S. government agencies, as useful measurements of the Company's core net income.
| Three Months Ended | Years Ended | |||||||||||||||||||||||||
| Dec 31, | Sep 30, | Jun 30, | Mar 31, | Dec 31, | Dec 31, | Dec 31, | ||||||||||||||||||||
| (Dollars and shares in thousands) | 2022 | 2022 | 2022 | 2022 | 2021 | 2022 | 2021 | |||||||||||||||||||
| Reconciliation of Non-GAAP Net Interest Margin and Efficiency Ratio: | ||||||||||||||||||||||||||
| (A) Interest Income (GAAP) | $ | 580,745 | $ | 466,478 | $ | 371,968 | $ | 328,252 | $ | 327,979 | $ | 1,747,443 | $ | 1,275,484 | ||||||||||||
| Taxable-equivalent adjustment: | ||||||||||||||||||||||||||
| - Loans | 1,594 | 1,030 | 568 | 427 | 417 | 3,619 | 1,627 | |||||||||||||||||||
| - Liquidity Management Assets | 538 | 502 | 472 | 465 | 486 | 1,977 | 1,972 | |||||||||||||||||||
| - Other Earning Assets | 1 | 1 | 1 | 2 | 2 | 5 | 2 | |||||||||||||||||||
| (B) Interest Income (non-GAAP) | $ | 582,878 | $ | 468,011 | $ | 373,009 | $ | 329,146 | $ | 328,884 | $ | 1,753,044 | $ | 1,279,085 | ||||||||||||
| (C) Interest Expense (GAAP) | 123,929 | 65,030 | 34,164 | 28,958 | 32,003 | 252,081 | 150,527 | |||||||||||||||||||
| (D) Net Interest Income (GAAP) (A minus C) | $ | 456,816 | $ | 401,448 | $ | 337,804 | $ | 299,294 | $ | 295,976 | $ | 1,495,362 | $ | 1,124,957 | ||||||||||||
| (E) Net Interest Income (non-GAAP) (B minus C) | $ | 458,949 | $ | 402,981 | $ | 338,845 | $ | 300,188 | $ | 296,881 | $ | 1,500,963 | $ | 1,128,558 | ||||||||||||
| Net interest margin (GAAP) | 3.71 | % | 3.34 | % | 2.92 | % | 2.60 | % | 2.54 | % | 3.15 | % | 2.57 | % | ||||||||||||
| Net interest margin, fully taxable-equivalent (non-GAAP) | 3.73 | 3.35 | 2.93 | 2.61 | 2.55 | 3.17 | 2.58 | |||||||||||||||||||
| (F) Non-interest income | $ | 93,839 | $ | 101,482 | $ | 102,942 | $ | 162,790 | $ | 133,767 | $ | 461,053 | $ | 586,120 | ||||||||||||
| (G) Losses on investment securities, net | (6,745 | ) | (3,103 | ) | (7,797 | ) | (2,782 | ) | (1,067 | ) | (20,427 | ) | (1,059 | ) | ||||||||||||
| (H) Non-interest expense | 307,836 | 296,469 | 288,668 | 284,298 | 283,399 | 1,177,271 | 1,132,544 | |||||||||||||||||||
| Efficiency ratio (H/(D+F-G)) | 55.23 | % | 58.59 | % | 64.36 | % | 61.16 | % | 65.78 | % | 59.55 | % | 66.15 | % | ||||||||||||
| Efficiency ratio (non-GAAP) (H/(E+F-G)) | 55.02 | 58.41 | 64.21 | 61.04 | 65.64 | 59.38 | 66.01 | |||||||||||||||||||
| Reconciliation of Non-GAAP Tangible Common Equity Ratio: | ||||||||||||||||||||||||||
| Total shareholders' equity (GAAP) | $ | 4,796,838 | $ | 4,637,980 | $ | 4,727,623 | $ | 4,492,256 | $ | 4,498,688 | ||||||||||||||||
| Less: Non-convertible preferred stock (GAAP) | (412,500 | ) | (412,500 | ) | (412,500 | ) | (412,500 | ) | (412,500 | ) | ||||||||||||||||
| Less: Intangible assets (GAAP) | (675,710 | ) | (676,699 | ) | (679,827 | ) | (682,101 | ) | (683,456 | ) | ||||||||||||||||
| (I) Total tangible common shareholders' equity (non-GAAP) | $ | 3,708,628 | $ | 3,548,781 | $ | 3,635,296 | $ | 3,397,655 | $ | 3,402,732 | ||||||||||||||||
| (J) Total assets (GAAP) | $ | 52,949,649 | $ | 52,382,939 | $ | 50,969,332 | $ | 50,250,661 | $ | 50,142,143 | ||||||||||||||||
| Less: Intangible assets (GAAP) | (675,710 | ) | (676,699 | ) | (679,827 | ) | (682,101 | ) | (683,456 | ) | ||||||||||||||||
| (K) Total tangible assets (non-GAAP) | $ | 52,273,939 | $ | 51,706,240 | $ | 50,289,505 | $ | 49,568,560 | $ | 49,458,687 | ||||||||||||||||
| Common equity to assets ratio (GAAP) (L/J) | 8.3 | % | 8.1 | % | 8.5 | % | 8.1 | % | 8.1 | % | ||||||||||||||||
| Tangible common equity ratio (non-GAAP) (I/K) | 7.1 | 6.9 | 7.2 | 6.9 | 6.9 | |||||||||||||||||||||
| Three Months Ended | Years Ended | |||||||||||||||||||||||||
| Dec 31, | Sep 30, | Jun 30, | Mar 31, | Dec 31, | Dec 31, | Dec 31, | ||||||||||||||||||||
| (Dollars and shares in thousands) | 2022 | 2022 | 2022 | 2022 | 2021 | 2022 | 2021 | |||||||||||||||||||
| Reconciliation of Non-GAAP Tangible Book Value per Common Share: | ||||||||||||||||||||||||||
| Total shareholders' equity | $ | 4,796,838 | $ | 4,637,980 | $ | 4,727,623 | $ | 4,492,256 | $ | 4,498,688 | ||||||||||||||||
| Less: Preferred stock | (412,500 | ) | (412,500 | ) | (412,500 | ) | (412,500 | ) | (412,500 | ) | ||||||||||||||||
| (L) Total common equity | $ | 4,384,338 | $ | 4,225,480 | $ | 4,315,123 | $ | 4,079,756 | $ | 4,086,188 | ||||||||||||||||
| (M) Actual common shares outstanding | 60,794 | 60,743 | 60,722 | 57,253 | 57,054 | |||||||||||||||||||||
| Book value per common share (L/M) | $ | 72.12 | $ | 69.56 | $ | 71.06 | $ | 71.26 | $ | 71.62 | ||||||||||||||||
| Tangible book value per common share (non-GAAP) (I/M) | 61.00 | 58.42 | 59.87 | 59.34 | 59.64 | |||||||||||||||||||||
| Reconciliation of Non-GAAP Return on Average Tangible Common Equity: | ||||||||||||||||||||||||||
| (N) Net income applicable to common shares | $ | 137,826 | $ | 135,970 | $ | 87,522 | $ | 120,400 | $ | 91,766 | $ | 481,718 | $ | 438,187 | ||||||||||||
| Add: Intangible asset amortization | 1,436 | 1,492 | 1,579 | 1,609 | 1,811 | 6,116 | 7,734 | |||||||||||||||||||
| Less: Tax effect of intangible asset amortization | (370 | ) | (425 | ) | (445 | ) | (430 | ) | (505 | ) | (1,664 | ) | (2,080 | ) | ||||||||||||
| After-tax intangible asset amortization | $ | 1,066 | $ | 1,067 | $ | 1,134 | $ | 1,179 | $ | 1,306 | $ | 4,452 | $ | 5,654 | ||||||||||||
| (O) Tangible net income applicable to common shares (non-GAAP) | $ | 138,892 | $ | 137,037 | $ | 88,656 | $ | 121,579 | $ | 93,072 | $ | 486,170 | $ | 443,841 | ||||||||||||
| Total average shareholders' equity | $ | 4,710,856 | $ | 4,795,387 | $ | 4,526,110 | $ | 4,500,460 | $ | 4,433,953 | $ | 4,634,224 | $ | 4,300,742 | ||||||||||||
| Less: Average preferred stock | (412,500 | ) | (412,500 | ) | (412,500 | ) | (412,500 | ) | (412,500 | ) | (412,500 | ) | (412,500 | ) | ||||||||||||
| (P) Total average common shareholders' equity | $ | 4,298,356 | $ | 4,382,887 | $ | 4,113,610 | $ | 4,087,960 | $ | 4,021,453 | $ | 4,221,724 | $ | 3,888,242 | ||||||||||||
| Less: Average intangible assets | (676,371 | ) | (678,953 | ) | (681,091 | ) | (682,603 | ) | (677,470 | ) | (679,735 | ) | (678,739 | ) | ||||||||||||
| (Q) Total average tangible common shareholders' equity (non-GAAP) | $ | 3,621,985 | $ | 3,703,934 | $ | 3,432,519 | $ | 3,405,357 | $ | 3,343,983 | $ | 3,541,989 | $ | 3,209,503 | ||||||||||||
| Return on average common equity, annualized (N/P) | 12.72 | % | 12.31 | % | 8.53 | % | 11.94 | % | 9.05 | % | 11.41 | % | 11.27 | % | ||||||||||||
| Return on average tangible common equity, annualized (non-GAAP) (O/Q) | 15.21 | 14.68 | 10.36 | 14.48 | 11.04 | 13.73 | 13.83 | |||||||||||||||||||
| Reconciliation of Non-GAAP Pre-Tax, Pre-Provision Income, Adjusted for Changes in Fair Value of MSRs, net of economic hedge and Early Buy-out Loans Guaranteed by U.S. Government Agencies: | ||||||||||||||||||||||||||
| Income before taxes | $ | 195,173 | $ | 200,041 | $ | 131,661 | $ | 173,680 | $ | 137,045 | $ | 700,555 | $ | 637,796 | ||||||||||||
| Add: Provision for credit losses | 47,646 | 6,420 | 20,417 | 4,106 | 9,299 | 78,589 | (59,263 | ) | ||||||||||||||||||
| Pre-tax income, excluding provision for credit losses (non-GAAP) | $ | 242,819 | $ | 206,461 | $ | 152,078 | $ | 177,786 | $ | 146,344 | $ | 779,144 | $ | 578,533 | ||||||||||||
| Less: Changes in fair value of MSRs, net of economic hedge and early buy-out loans guaranteed by U.S. government agencies | 702 | 2,472 | (445 | ) | (43,365 | ) | (6,656 | ) | (40,636 | ) | (18,273 | ) | ||||||||||||||
| Pre-tax income, excluding provision for credit losses, adjusted for changes in fair value of MSRs, net of economic hedge and early buy-out loans guaranteed by U.S. government agencies (non-GAAP) | $ | 243,521 | $ | 208,933 | $ | 151,633 | $ | 134,421 | $ | 139,688 | $ | 738,508 | $ | 560,260 | ||||||||||||
| Dec 31, | Dec 31, | Dec 31, | Dec 31, | Dec 31, | Dec 31, | Dec 31, | Dec 31, | Dec 31, | |||||||||||||||||||||||||||
| 2020 | 2019 | 2018 | 2017 | 2016 | 2015 | 2014 | 2013 | 2012 | |||||||||||||||||||||||||||
| Reconciliation of Non-GAAP Tangible Book Value per Common Share: | |||||||||||||||||||||||||||||||||||
| Total shareholders' equity | $ | 4,115,995 | $ | 3,691,250 | $ | 3,267,570 | $ | 2,976,939 | $ | 2,695,617 | $ | 2,352,274 | $ | 2,069,822 | $ | 1,900,589 | $ | 1,804,705 | |||||||||||||||||
| Less: Non-convertible preferred stock (GAAP) | (412,500 | ) | (125,000 | ) | (125,000 | ) | (125,000 | ) | (251,257 | ) | (251,287 | ) | (126,467 | ) | (126,477 | ) | (176,406 | ) | |||||||||||||||||
| (R) Less: Intangible assets (GAAP) | (681,747 | ) | (692,277 | ) | (622,565 | ) | (519,505 | ) | (520,438 | ) | (495,970 | ) | (424,445 | ) | (393,760 | ) | (366,348 | ) | |||||||||||||||||
| (I) Total tangible common shareholders' equity (non-GAAP) | $ | 3,021,748 | $ | 2,873,973 | $ | 2,520,005 | $ | 2,332,434 | $ | 1,923,922 | $ | 1,605,017 | $ | 1,518,910 | $ | 1,380,352 | $ | 1,261,951 | |||||||||||||||||
| Actual common shares outstanding | 56,770 | 57,822 | 56,408 | 55,965 | 51,881 | 48,383 | 46,805 | 46,117 | 36,858 | ||||||||||||||||||||||||||
| Add: Tangible equity unit conversion shares | - | - | - | - | - | - | - | - | 6,241 | ||||||||||||||||||||||||||
| (M) Common shares used for book value calculation | 56,770 | 57,822 | 56,408 | 55,965 | 51,881 | 48,383 | 46,805 | 46,117 | 43,099 | ||||||||||||||||||||||||||
| Book value per common share ((I-R)/M) | $ | 65.24 | $ | 61.68 | $ | 55.71 | $ | 50.96 | $ | 47.11 | $ | 43.42 | $ | 41.52 | $ | 38.47 | $ | 37.78 | |||||||||||||||||
| Tangible book value per common share (non-GAAP) (I/M) | 53.23 | 49.70 | 44.67 | 41.68 | 37.08 | 33.17 | 32.45 | 29.93 | 29.28 | ||||||||||||||||||||||||||
WINTRUST SUBSIDIARIES AND LOCATIONS
Wintrust is a financial holding company whose common stock is traded on the Nasdaq Global Select Market (Nasdaq: WTFC). Its 15 community bank subsidiaries are: Lake Forest Bank & Trust Company, N.A., Hinsdale Bank & Trust Company, N.A., Wintrust Bank, N.A., in Chicago, Libertyville Bank & Trust Company, N.A., Barrington Bank & Trust Company, N.A., Crystal Lake Bank & Trust Company, N.A., Northbrook Bank & Trust Company, N.A., Schaumburg Bank & Trust Company, N.A., Village Bank & Trust, N.A., in Arlington Heights, Beverly Bank & Trust Company, N.A. in Chicago, Wheaton Bank & Trust Company, N.A., State Bank of The Lakes, N.A., in Antioch, Old Plank Trail Community Bank, N.A., in New Lenox, St. Charles Bank & Trust Company, N.A. and Town Bank, N.A., in Hartland, Wisconsin.
In addition to the locations noted above, the banks also operate facilities in Illinois in Addison, Algonquin, Aurora, Bloomingdale, Bolingbrook, Buffalo Grove, Burbank, Cary, Clarendon Hills, Crete, Countryside, Darien, Deerfield, Des Plaines, Downers Grove, Elgin, Elk Grove Village, Elmhurst, Evanston, Evergreen Park, Frankfort, Geneva, Glen Ellyn, Glencoe, Glenview, Gurnee, Grayslake, Hanover Park, Highland Park, Highwood, Hoffman Estates, Homer Glen, Itasca, Joliet, Lake Bluff, Lake Villa, Lansing, Lemont, Lindenhurst, Lombard, Lynwood, Markham, Maywood, McHenry, Mokena, Mount Prospect, Mundelein, Naperville, Northfield, Norridge, Oak Lawn, Oak Park, Orland Park, Palatine, Park Ridge, Prospect Heights, Riverside, Rockford, Rolling Meadows, Round Lake Beach, Shorewood, Skokie, South Holland, Spring Grove, Steger, Stone Park, Vernon Hills, Wauconda, Waukegan, Western Springs, Willowbrook, Wilmette, Winnetka and Wood Dale, and in Wisconsin in Burlington, Clinton, Delafield, Delavan, Elm Grove, Genoa City, Kenosha, Lake Geneva, Madison, Menomonee Falls, Milwaukee, Pewaukee, Racine, Wales, Walworth, Whitefish Bay and Wind Lake, and in Dyer, Indiana and in Naples, Florida.
Additionally, the Company operates various non-bank business units:
- FIRST Insurance Funding and Wintrust Life Finance, each a division of Lake Forest Bank & Trust Company, N.A., serve commercial and life insurance loan customers, respectively, throughout the United States.
- First Insurance Funding of Canada serves commercial insurance loan customers throughout Canada.
- Tricom, Inc. of Milwaukee provides high-yielding, short-term accounts receivable financing and value-added out-sourced administrative services, such as data processing of payrolls, billing and cash management services, to temporary staffing service clients located throughout the United States.
- Wintrust Mortgage, a division of Barrington Bank & Trust Company, N.A., engages primarily in the origination and purchase of residential mortgages for sale into the secondary market through origination offices located throughout the United States. Loans are also originated nationwide through relationships with wholesale and correspondent offices.
- Wintrust Investments, LLC is a broker-dealer providing a full range of private client and brokerage services to clients and correspondent banks located primarily in the Midwest.
- Great Lakes Advisors LLC provides money management services and advisory services to individual accounts.
- The Chicago Trust Company, N.A., a trust subsidiary, allows Wintrust to service customers' trust and investment needs at each banking location.
- Wintrust Asset Finance offers direct leasing opportunities.
- CDEC provides Qualified Intermediary services (as defined by U.S. Treasury regulations) for taxpayers seeking to structure tax-deferred like-kind exchanges under Internal Revenue Code Section 1031.
FORWARD-LOOKING STATEMENTS
This document contains forward-looking statements within the meaning of federal securities laws. Forward-looking information can be identified through the use of words such as "intend," "plan," "project," "expect," "anticipate," "believe," "estimate," "contemplate," "possible," "will," "may," "should," "would" and "could." Forward-looking statements and information are not historical facts, are premised on many factors and assumptions, and represent only management's expectations, estimates and projections regarding future events. Similarly, these statements are not guarantees of future performance and involve certain risks and uncertainties that are difficult to predict, such as the impacts of the COVID-19 pandemic (including the continued emergence of variant strains), and which may include, but are not limited to, those listed below and the Risk Factors discussed under Item 1A of the Company's 2021 Annual Report on Form 10-K and in any of the Company's subsequent SEC filings. The Company intends such forward-looking statements to be covered by the safe harbor provisions for forward-looking statements contained in the Private Securities Litigation Reform Act of 1995, and is including this statement for purposes of invoking these safe harbor provisions. Such forward-looking statements may be deemed to include, among other things, statements relating to the Company's future financial performance, the performance of its loan portfolio, the expected amount of future credit reserves and charge-offs, delinquency trends, growth plans, regulatory developments, securities that the Company may offer from time to time, and management's long-term performance goals, as well as statements relating to the anticipated effects on financial condition and results of operations from expected developments or events, the Company's business and growth strategies, including future acquisitions of banks, specialty finance or wealth management businesses, internal growth and plans to form additional de novo banks or branch offices. Actual results could differ materially from those addressed in the forward-looking statements as a result of numerous factors, including the following:
- the severity, magnitude and duration of the COVID-19 pandemic, including the continued emergence of variant strains, and the direct and indirect impact of such pandemic, as well as responses to the pandemic by the government, businesses and consumers, on the economy, our financial results, operations and personnel, commercial activity and demand across our business and our customers' businesses;
- economic conditions and events that affect the economy, housing prices, the job market and other factors that may adversely affect the Company's liquidity and the performance of its loan portfolios, particularly in the markets in which it operates;
- negative effects suffered by us or our customers resulting from changes in U.S. trade policies;
- the extent of defaults and losses on the Company's loan portfolio, which may require further increases in its allowance for credit losses;
- estimates of fair value of certain of the Company's assets and liabilities, which could change in value significantly from period to period;
- the financial success and economic viability of the borrowers of our commercial loans;
- commercial real estate market conditions in the Chicago metropolitan area and southern Wisconsin;
- the extent of commercial and consumer delinquencies and declines in real estate values, which may require further increases in the Company's allowance for credit losses;
- inaccurate assumptions in our analytical and forecasting models used to manage our loan portfolio;
- changes in the level and volatility of interest rates, the capital markets and other market indices (including developments and volatility arising from or related to the COVID-19 pandemic) that may affect, among other things, the Company's liquidity and the value of its assets and liabilities;
- the interest rate environment, including a prolonged period of low interest rates or rising interest rates, either broadly or for some types of instruments, which may affect the Company's net interest income and net interest margin, and which could materially adversely affect the Company's profitability;
- competitive pressures in the financial services business which may affect the pricing of the Company's loan and deposit products as well as its services (including wealth management services), which may result in loss of market share and reduced income from deposits, loans, advisory fees and income from other products;
- failure to identify and complete favorable acquisitions in the future or unexpected difficulties or developments related to the integration of the Company's recent or future acquisitions;
- unexpected difficulties and losses related to FDIC-assisted acquisitions;
- harm to the Company's reputation;
- any negative perception of the Company's financial strength;
- ability of the Company to raise additional capital on acceptable terms when needed;
- disruption in capital markets, which may lower fair values for the Company's investment portfolio;
- ability of the Company to use technology to provide products and services that will satisfy customer demands and create efficiencies in operations and to manage risks associated therewith;
- failure or breaches of our security systems or infrastructure, or those of third parties;
- security breaches, including denial of service attacks, hacking, social engineering attacks, malware intrusion or data corruption attempts and identity theft;
- adverse effects on our information technology systems resulting from failures, human error or cyberattacks (including ransomware);
- adverse effects of failures by our vendors to provide agreed upon services in the manner and at the cost agreed, particularly our information technology vendors;
- increased costs as a result of protecting our customers from the impact of stolen debit card information;
- accuracy and completeness of information the Company receives about customers and counterparties to make credit decisions;
- ability of the Company to attract and retain senior management experienced in the banking and financial services industries;
- environmental liability risk associated with lending activities;
- the impact of any claims or legal actions to which the Company is subject, including any effect on our reputation;
- losses incurred in connection with repurchases and indemnification payments related to mortgages and increases in reserves associated therewith;
- the loss of customers as a result of technological changes allowing consumers to complete their financial transactions without the use of a bank;
- the soundness of other financial institutions;
- the expenses and delayed returns inherent in opening new branches and de novo banks;
- liabilities, potential customer loss or reputational harm related to closings of existing branches;
- examinations and challenges by tax authorities, and any unanticipated impact of the Tax Act;
- changes in accounting standards, rules and interpretations, and the impact on the Company's financial statements;
- the ability of the Company to receive dividends from its subsidiaries;
- the ability of the Company to successfully discontinue use of LIBOR and transition to an alternative rate for current and future transactions;
- a decrease in the Company's capital ratios, including as a result of declines in the value of its loan portfolios, or otherwise;
- legislative or regulatory changes, particularly changes in regulation of financial services companies and/or the products and services offered by financial services companies, including those changes that are in response to the COVID-19 pandemic, including without limitation the Coronavirus Aid, Relief, and Economic Security Act, the Economic Aid to Hard-Hit Small Businesses, Nonprofits and Venues Act, and the rules and regulations that may be promulgated thereunder;
- a lowering of our credit rating;
- changes in U.S. monetary policy and changes to the Federal Reserve's balance sheet, including changes in response to the COVID-19 pandemic, persistent inflation or otherwise;
- regulatory restrictions upon our ability to market our products to consumers and limitations on our ability to profitably operate our mortgage business;
- increased costs of compliance, heightened regulatory capital requirements and other risks associated with changes in regulation and the regulatory environment;
- the impact of heightened capital requirements;
- increases in the Company's FDIC insurance premiums, or the collection of special assessments by the FDIC;
- delinquencies or fraud with respect to the Company's premium finance business;
- credit downgrades among commercial and life insurance providers that could negatively affect the value of collateral securing the Company's premium finance loans;
- the Company's ability to comply with covenants under its credit facility;
- fluctuations in the stock market, which may have an adverse impact on the Company's wealth management business and brokerage operation; and
- widespread outages of operational, communication, or other systems, whether internal or provided by third parties, natural or other disasters (including acts of terrorism, armed hostilities and pandemics), and the effects of climate change could have an adverse effect on the Company's financial condition and results of operations, lead to material disruption of the Company's operations or the ability or willingness of clients to access the Company's products and services.
Therefore, there can be no assurances that future actual results will correspond to these forward-looking statements. The reader is cautioned not to place undue reliance on any forward-looking statement made by the Company. Any such statement speaks only as of the date the statement was made or as of such date that may be referenced within the statement. The Company undertakes no obligation to update any forward-looking statement to reflect the impact of circumstances or events after the date of the press release. Persons are advised, however, to consult further disclosures management makes on related subjects in its reports filed with the Securities and Exchange Commission and in its press releases.
CONFERENCE CALL, WEBCAST AND REPLAY
The Company will hold a conference call on Thursday, January 19, 2023 at 10:00 a.m. (CST) regarding fourth quarter and full year 2022 earnings results. Individuals interested in participating in the call by addressing questions to management should register for the call to receive the dial-in numbers and unique PIN at the link included within the Company's press release dated December 22, 2022 available at the Investor Relations, Investor News and Events, Press Releases link on its website at https://www.wintrust.com. A separate simultaneous audio-only webcast link is included within the press release referenced above. Registration for and a replay of the audio-only webcast with an accompanying slide presentation will be available at https://www.wintrust.com, Investor Relations, Investor News and Events, Presentations & Conference Calls. The text of the fourth quarter and full year 2022 earnings press release will also be available on the home page of the Company's website at https://www.wintrust.com and at the Investor Relations, Investor News and Events, Press Releases link on its website.
FOR MORE INFORMATION CONTACT:
Edward J. Wehmer, Founder & Chief Executive Officer
David A. Dykstra, Vice Chairman & Chief Operating Officer
(847) 939-9000
Web site address: www.wintrust.com
