Wintrust Financial Corporation Reports Third Quarter 2022 Results
ROSEMONT, Ill., Oct. 18, 2022 (GLOBE NEWSWIRE) -- Wintrust Financial Corporation (“Wintrust”, “the Company”, “we” or “our”) (Nasdaq: WTFC) announced net income of $143.0 million or $2.21 per diluted common share for the third quarter of 2022, an increase in diluted earnings per common share of 48% compared to the second quarter of 2022. The Company recorded net income of $364.9 million or $5.78 per diluted common share for the first nine months of 2022 compared to net income of $367.4 million or $6.00 per diluted common share for the same period of 2021.
Edward J. Wehmer, Founder and Chief Executive Officer, commented, “I am very pleased with our third quarter results as we reported strong net income and record quarterly pre-tax, pre-provision income (non-GAAP). By design, we were able to benefit significantly from the recent rise in interest rates as net interest income and net interest margin showed substantial growth. We expect that momentum to continue as we remain asset sensitive to changes in interest rates. In addition, we added strong loan growth in the third quarter, which paired with margin expansion, is expected to drive meaningful revenue growth in future quarters."
Highlights of the Third Quarter of 2022:
Comparative information to the second quarter of 2022
Net interest income increased by $63.6 million or by 19% as compared to the second quarter of 2022 primarily due to improvement in net interest margin and loan growth.
Net interest margin increased by 42 basis points as the upward repricing of earning assets significantly outpaced increases in deposit costs.
Total loans increased by $1.1 billion, or 12% on an annualized basis. In addition, total loans as of September 30, 2022 were $736 million higher than average total loans in the third quarter of 2022 which is expected to benefit future quarters.
Total assets increased by $1.4 billion totaling $52.4 billion as of September 30, 2022 and total deposits increased by $204 million.
Recorded a provision for credit losses of $6.4 million in the third quarter of 2022 primarily related to loan growth and $3.2 million of net charge-offs or three basis points of average total loans on an annualized basis.
The allowance for credit losses on our core loan portfolio is approximately 1.26% of the outstanding balance as of September 30, 2022 down from 1.31% as of June 30, 2022. See Table 12 for more information.
Non-performing loans remained low but increased to 0.26% of total loans, as of September 30, 2022, from 0.20% as of June 30, 2022. See “Asset Quality” section for more information.
Mortgage banking revenue decreased to $27.2 million for the third quarter of 2022 as compared to $33.3 million in the second quarter of 2022, primarily due to lower production revenue as a result of declining mortgage origination volume in the current rising rate environment.
Other items of note from the Third Quarter of 2022
The Company recorded net negative fair value adjustments of $2.5 million in the third quarter of 2022 related to fair value changes in certain mortgage assets, see “Non-Interest Income” section for more information.
Net losses on investment securities totaled $3.1 million in the third quarter of 2022 related to changes in the value of equity securities as compared to net losses of $7.8 million in the second quarter of 2022.
The effective tax rate increased as the Company recorded approximately $2.0 million of additional income tax expense related to earnings at its Canadian subsidiary. See “Income Taxes” section for more information.
Mr. Wehmer continued, "The Company experienced robust loan growth as loans increased by $1.1 billion, or 12% on an annualized basis, in the third quarter of 2022. Once again, the loan growth was spread across all of our material loan portfolios as we experienced growth in core commercial, commercial real estate, commercial insurance premium finance receivables and life insurance premium finance receivables. This is the sixth quarter in a row in which all of these portfolios individually increased in balance relative to the prior quarter end. We believe our diversified loan portfolio provides many levers for growth and we remain prudent in our review of credit prospects ensuring our loan growth stays within our conservative credit standards. In addition, in the third quarter we continued to grow unfunded loan commitments which we expect to drive funded loan growth in future quarters. Our loans to deposits ratio ended the quarter at 89.2% within our preferred operating range."
Mr. Wehmer commented, "Net interest income increased by $63.6 million in the third quarter of 2022 primarily due to improvement in net interest margin as well as an increase in earning assets. Net interest margin increased by 42 basis points as the upward repricing of earning assets significantly outpaced deposit rate changes. We remain asset sensitive to interest rates and believe that in the near term loan yields will continue to reprice at a greater magnitude than deposit costs. Further, we believe, subject to no material change in the consensus projection of interest rates as of this release date, that our net interest margin will continue to expand and should approach 4.00% during the first quarter of 2023.”
Commenting on credit quality, Mr. Wehmer stated, "While uncertain economic conditions may persist in the coming quarters, Wintrust is confident in our ability to navigate such conditions especially given our current credit quality metrics. Non-performing loans comprise only 0.26% of total loans as of September 30, 2022 increasing to $97.6 million as compared to $72.4 million as of June 30, 2022. The Company recorded a provision for credit losses of $6.4 million in the third quarter of 2022, in part related to $3.2 million of net charge-offs and strong loan growth recorded in the quarter. The allowance for credit losses on our core loan portfolio as of September 30, 2022 is approximately 1.26% 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 third quarter of 2022 results continued to demonstrate the multi-faceted nature of our business model which we believe uniquely positions us to be successful. We expect to leverage our differentiated, diversified loan portfolio to outperform peers with respect to loan growth which should allow us to continue to expand net interest income. We are focused on taking advantage of market opportunities to prudently deploy liquidity into earning assets including core and niche loans and investment securities while maintaining an interest rate sensitive asset portfolio. 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. Of course, we remain diligent in our consideration of acquisition targets and intend to be prudent in our decision making, always seeking to minimize dilution.”
The graphs below illustrate certain financial highlights of the third quarter of 2022 as well as historical financial performance. See “Supplemental Non-GAAP Financial Measures/Ratios” at Table 18 for additional information with respect to non-GAAP financial measures/ratios, including the reconciliations to the corresponding GAAP financial measures/ratios.
Graphs available at the following link:
http://ml.globenewswire.com/Resource/Download/152e3876-87c2-465d-903d-0703ddbdba16
SUMMARY OF RESULTS:
BALANCE SHEET
Total loans increased by $1.1 billion as core loans increased by $703 million and niche loans increased by $450 million. See Table 1 for more information. As of September 30, 2022, virtually all of the PPP loan balances were forgiven with only $44 million remaining on balance sheet.
Total liabilities increased $1.5 billion in the third quarter of 2022 resulting primarily from a $1.1 billion increase in Federal Home Loan Bank advances and a $204 million increase in total deposits. The Company utilized $1.0 billion of this funding to purchase investment securities which settled early in the fourth quarter of 2022. The Company's loans to deposits ratio ended the quarter at 89.2%. Management believes in substantially funding the Company's balance sheet with core deposits and utilizes brokered or wholesale funding sources on a limited basis to manage its liquidity position as well as for interest rate risk management purposes.
For more information regarding changes in the Company’s balance sheet, see Consolidated Statements of Condition and Tables 1 through 3 in this report.
NET INTEREST INCOME
For the third quarter of 2022, net interest income totaled $401.4 million, an increase of $63.6 million as compared to the second quarter of 2022. The $63.6 million increase in net interest income in the third quarter of 2022 compared to the second quarter of 2022 was primarily due to loan growth and improvement in net interest margin. The Company recognized $463,000 of PPP fee accretion in the third quarter of 2022 as compared to $4.5 million in the second quarter of 2022. As of September 30, 2022, the Company had approximately $1.7 million of net PPP loan fees that have yet to be recognized in income.
Net interest margin was 3.34% (3.35% on a fully taxable-equivalent basis, non-GAAP) during the third quarter of 2022 compared to 2.92% (2.93% on a fully taxable-equivalent basis, non-GAAP) during the second quarter of 2022. The net interest margin increase as compared to the second quarter of 2022 was due to a 67 basis point increase in yield on earning assets and a 12 basis point increase in net free funds contribution. These improvements were partially offset by a 37 basis point increase in the rate paid on interest-bearing liabilities. The 67 basis point increase in the yield on earning assets in the third quarter of 2022 as compared to the second quarter of 2022 was primarily due to a 69 basis point improvement on loan yields and a higher liquidity management asset yield as the Company earned higher yields on interest-bearing deposits with banks. The 37 basis point increase in the rate paid on interest-bearing liabilities in the third quarter of 2022 as compared to the second quarter of 2022 is primarily due to a 36 basis point increase in the rate paid on interest-bearing deposits primarily related to the increasing rate environment.
Wintrust remains in an asset-sensitive interest rate position. Based on modeled contractual cash flows, including prepayment assumptions, approximately 80% of our current loan balances are projected to reprice or mature in the next 12 months.
For more information regarding net interest income, see Tables 4 through 8 in this report.
ASSET QUALITY
The allowance for credit losses totaled $315.3 million as of September 30, 2022, an increase of $3.1 million as compared to $312.2 million as of June 30, 2022. A provision for credit losses totaling $6.4 million was recorded for the third quarter of 2022 as compared to $20.4 million recorded in the second 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 September 30, 2022, June 30, 2022, and March 31, 2022 is shown on Table 12 of this report.
Net charge-offs totaled $3.2 million in the third quarter of 2022, as compared to $9.5 million of net charge-offs in the second quarter of 2022. Net charge-offs as a percentage of average total loans were reported as three basis points in the third quarter of 2022 on an annualized basis compared to 11 basis points on an annualized basis in the second 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 0.20% as of September 30, 2022, compared to 0.16% at June 30, 2022. Non-performing assets totaled $104.3 million at September 30, 2022, compared to $79.2 million at June 30, 2022. Non-performing loans totaled $97.6 million, or 0.26% of total loans, at September 30, 2022 compared to $72.4 million, or 0.20% of total loans, at June 30, 2022. The increase in non-performing loans in the third quarter of 2022 is primarily driven by one commercial loan credit that moved to a non-accrual status and an increase in administrative 90-day past due premium finance receivables. For more information regarding non-performing assets, see Table 14 in this report.
NON-INTEREST INCOME
Wealth management revenue increased $1.8 million in the third quarter of 2022 as compared to the second quarter of 2022 primarily due to increased fees relating to the Company’s tax-deferred like-kind exchange services. 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 $6.1 million in the third quarter of 2022 as compared to the second quarter of 2022 primarily due to lower production revenue as a result of declining mortgage origination volume in the current rising rate environment. The Company also recorded a net loss of $2.5 million in the third quarter of 2022 relating to fair value changes in certain mortgage assets. This included a $7.5 million increase in the value of mortgage servicing rights related to changes in fair value model assumptions net of economic hedges and a negative $8.0 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. In addition, the Company recorded a $2.0 million negative valuation adjustment in other income on the Company’s held-for-investment portfolio of early buy-out exercised loans guaranteed by U.S. government agencies which are held at fair value. 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.
Loans originated for sale were $661 million in the third quarter of 2022, a decrease of $160 million as compared to the second quarter of 2022. The percentage of origination volume from refinancing activities was 18% in the third quarter of 2022 as compared to 22% in the second quarter of 2022. Mortgage banking revenue includes revenue from activities related to originating, selling and servicing residential real estate loans for the secondary market.
The Company recognized net losses on investment securities of $3.1 million in the third quarter of 2022 as compared to net losses of $7.8 million recognized in the second quarter of 2022.
Net operating lease income decreased $2.4 million in the third quarter of 2022 as compared to the second quarter of 2022 due to lower gains on sale of lease assets recognized in the third quarter of 2022 as compared to the second quarter of 2022.
Other non-interest income increased $2.0 million in the third quarter of 2022 as compared to the second quarter of 2022 primarily due to $2.5 million of losses recognized in the second quarter of 2022 relating to the sale of a property no longer considered for future expansion and the anticipated sale of a former data processing facility.
For more information regarding non-interest income, see Tables 15 and 16 in this report.
NON-INTEREST EXPENSE
Salaries and employee benefits expense increased by $8.8 million in the third quarter of 2022 as compared to the second quarter of 2022. The $8.8 million increase is primarily related to increased salary and incentive compensation expense. Salary expense increased $5.0 million in the third quarter of 2022 as compared to the second quarter of 2022 primarily due to mid-year compensation increases which included raising the Company’s minimum wage. Commission and incentive compensation increased $4.3 million in the third quarter of 2022 as compared to the second quarter of 2022 primarily due to increased incentive compensation related to the Company’s performance offset somewhat by a lower level of mortgage banking commissions due to the declining mortgage loan origination volumes.
Advertising and marketing expenses in the third quarter of 2022 totaled $16.6 million, relatively unchanged as compared to the second quarter of 2022. Marketing costs are incurred to promote the Company's brand, commercial banking capabilities and the Company's various products, to attract loans and deposits and to announce new branch openings as well as the expansion of the Company's non-bank businesses. The level of marketing expenditures depends on the timing of sponsorship programs utilized which are determined based on the market area, targeted audience, competition and various other factors.
Miscellaneous expense in the third quarter of 2022 decreased by $1.7 million as compared to the second quarter of 2022. Miscellaneous expense includes ATM expenses, correspondent bank charges, directors fees, telephone, postage, corporate insurance, dues and subscriptions, problem loan expenses and other miscellaneous operational losses and costs.
For more information regarding non-interest expense, see Table 17 in this report.
INCOME TAXES
The Company recorded income tax expense of $57.1 million in the third quarter of 2022 compared to $37.1 million in the second quarter of 2022. The effective tax rates were 28.53% in the third quarter of 2022 compared to 28.21% in the second quarter of 2022. The effective tax rate increased as the Company recorded approximately $2.0 million of additional income tax expense related to earnings at its Canadian subsidiary. The tax, known as GILTI (“Global Intangible Low-taxed Income”) is a U.S. minimum tax on global profits. During the quarter, the impact of the rapid and significant strengthening of the U.S. dollar relative to the Canadian dollar caused the GILTI tax to be applicable.
BUSINESS UNIT SUMMARY
Community Banking
Through its community banking unit, the Company provides banking and financial services primarily to individuals, small to mid-sized businesses, local governmental units and institutional clients residing primarily in the local areas the Company services. In the third quarter of 2022, this unit expanded its loan portfolio. The segment’s net interest income increased in the third quarter of 2022 as compared to the second quarter of 2022 due to loan growth and an increased net interest margin.
Mortgage banking revenue was $27.2 million for the third quarter of 2022, a decrease of $6.1 million as compared to the second quarter of 2022, primarily due to lower production revenue as a result of declining mortgage origination volume in the current rising rate environment. Service charges on deposit accounts totaled $14.3 million in the third quarter of 2022, a decrease of $1.5 million as compared to the second 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 September 30, 2022 indicating momentum for continued loan growth in the fourth quarter of 2022.
Specialty Finance
Through its specialty finance unit, the Company offers financing of insurance premiums for businesses and individuals, equipment financing through structured loans and lease products to customers in a variety of industries, accounts receivable financing and value-added, out-sourced administrative services and other services. Originations within the insurance premium financing receivables portfolio were $4.1 billion during the third quarter of 2022 and average balances increased by $866.3 million as compared to the second quarter of 2022. The Company’s leasing portfolio balance increased in the third quarter of 2022, with its portfolio of assets, including capital leases, loans and equipment on operating leases, totaling $2.7 billion as of September 30, 2022 as compared to $2.6 billion as of June 30, 2022. Revenues from the Company’s out-sourced administrative services business were $1.5 million in the third quarter of 2022, a decrease of $58,000 from the second 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 $33.1 million in the third quarter of 2022, an increase of $1.8 million compared to the second quarter of 2022. At September 30, 2022, the Company’s wealth management subsidiaries had approximately $32.8 billion of assets under administration, which included $6.9 billion of assets owned by the Company and its subsidiary banks, representing a slight decrease from the $32.9 billion of assets under administration at June 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 third quarter of 2022, as compared to the second quarter of 2022 (sequential quarter) and third quarter of 2021 (linked quarter), are shown in the table below:
% or(1) | % or | |||||||||||||||||
Three Months Ended | ||||||||||||||||||
(Dollars in thousands, except per share data) | Sep 30, 2022 | Jun 30, 2022 | Sep 30, 2021 | |||||||||||||||
Net income | $ | 142,961 | $ | 94,513 | $ | 109,137 | 51 | % | 31 | % | ||||||||
Pre-tax income, excluding provision for credit losses (non-GAAP)(2) | 206,461 | 152,078 | 141,826 | 36 | 46 | |||||||||||||
Net income per common share – diluted | 2.21 | 1.49 | 1.77 | 48 | 25 | |||||||||||||
Cash dividends declared per common share | 0.34 | 0.34 | 0.31 | — | 10 | |||||||||||||
Net revenue(3) | 502,930 | 440,746 | 423,970 | 14 | 19 | |||||||||||||
Net interest income | 401,448 | 337,804 | 287,496 | 19 | 40 | |||||||||||||
Net interest margin | 3.34 | % | 2.92 | % | 2.58 | % | 42 | bps | 76 | bps | ||||||||
Net interest margin – fully taxable-equivalent (non-GAAP)(2) | 3.35 | 2.93 | 2.59 | 42 | 76 | |||||||||||||
Net overhead ratio(4) | 1.53 | 1.51 | 1.22 | 2 | 31 | |||||||||||||
Return on average assets | 1.12 | 0.77 | 0.92 | 35 | 20 | |||||||||||||
Return on average common equity | 12.31 | 8.53 | 10.31 | 378 | 200 | |||||||||||||
Return on average tangible common equity (non-GAAP)(2) | 14.68 | 10.36 | 12.62 | 432 | 206 | |||||||||||||
At end of period | ||||||||||||||||||
Total assets | $ | 52,382,939 | $ | 50,969,332 | $ | 47,832,271 | 11 | % | 10 | % | ||||||||
Total loans(5) | 38,167,613 | 37,053,103 | 33,264,043 | 12 | 15 | |||||||||||||
Total deposits | 42,797,191 | 42,593,326 | 39,952,558 | 2 | 7 | |||||||||||||
Total shareholders’ equity | 4,637,980 | 4,727,623 | 4,410,317 | (8 | ) | 5 | ||||||||||||
(1) Period-end balance sheet percentage changes are annualized.
(2) See “Supplemental Non-GAAP Financial Measures/Ratios” at Table 18 for additional information on this performance measure/ratio.
(3) Net revenue is net interest income plus non-interest income.
(4) The net overhead ratio is calculated by netting total non-interest expense and total non-interest income, annualizing this amount, and dividing by that period’s average total assets. A lower ratio indicates a higher degree of efficiency.
(5) Excludes mortgage loans held-for-sale.
Certain returns, yields, performance ratios, or quarterly growth rates are “annualized” in this presentation to represent an annual time period. This is done for analytical purposes to better discern, for decision-making purposes, underlying performance trends when compared to full-year or year-over-year amounts. For example, a 5% growth rate for a quarter would represent an annualized 20% growth rate. Additional supplemental financial information showing quarterly trends can be found on the Company’s website at www.wintrust.com by choosing “Financial Reports” under the “Investor Relations” heading, and then choosing “Financial Highlights.”
WINTRUST FINANCIAL CORPORATION
Selected Financial Highlights
Three Months Ended | Nine Months Ended | ||||||||||||||||||||||||||
(Dollars in thousands, except per share data) | Sep 30, | Jun 30, | Mar 31, | Dec 31, | Sep 30, | Sep 30, | Sep 30, | ||||||||||||||||||||
Selected Financial Condition Data (at end of period): | |||||||||||||||||||||||||||
Total assets | $ | 52,382,939 | $ | 50,969,332 | $ | 50,250,661 | $ | 50,142,143 | $ | 47,832,271 | |||||||||||||||||
Total loans(1) | 38,167,613 | 37,053,103 | 35,280,547 | 34,789,104 | 33,264,043 | ||||||||||||||||||||||
Total deposits | 42,797,191 | 42,593,326 | 42,219,322 | 42,095,585 | 39,952,558 | ||||||||||||||||||||||
Total shareholders’ equity | 4,637,980 | 4,727,623 | 4,492,256 | 4,498,688 | 4,410,317 | ||||||||||||||||||||||
Selected Statements of Income Data: | |||||||||||||||||||||||||||
Net interest income | $ | 401,448 | $ | 337,804 | $ | 299,294 | $ | 295,976 | $ | 287,496 | $ | 1,038,546 | $ | 828,981 | |||||||||||||
Net revenue(2) | 502,930 | 440,746 | 462,084 | 429,743 | 423,970 | 1,405,760 | 1,281,334 | ||||||||||||||||||||
Net income | 142,961 | 94,513 | 127,391 | 98,757 | 109,137 | 364,865 | 367,394 | ||||||||||||||||||||
Pre-tax income, excluding provision for credit losses (non-GAAP)(3) | 206,461 | 152,078 | 177,786 | 146,344 | 141,826 | 536,325 | 432,189 | ||||||||||||||||||||
Net income per common share – Basic | 2.24 | 1.51 | 2.11 | 1.61 | 1.79 | 5.86 | 6.08 | ||||||||||||||||||||
Net income per common share – Diluted | 2.21 | 1.49 | 2.07 | 1.58 | 1.77 | 5.78 | 6.00 | ||||||||||||||||||||
Cash dividends declared per common share | 0.34 | 0.34 | 0.34 | 0.31 | 0.31 | 1.02 | 0.93 | ||||||||||||||||||||
Selected Financial Ratios and Other Data: | |||||||||||||||||||||||||||
Performance Ratios: | |||||||||||||||||||||||||||
Net interest margin | 3.34 | % | 2.92 | % | 2.60 | % | 2.54 | % | 2.58 | % | 2.96 | % | 2.58 | % | |||||||||||||
Net interest margin – fully taxable-equivalent (non-GAAP)(3) | 3.35 | 2.93 | 2.61 | 2.55 | 2.59 | 2.97 | 2.59 | ||||||||||||||||||||
Non-interest income to average assets | 0.79 | 0.84 | 1.33 | 1.08 | 1.15 | 0.98 | 1.31 | ||||||||||||||||||||
Non-interest expense to average assets | 2.32 | 2.35 | 2.33 | 2.29 | 2.37 | 2.33 | 2.47 | ||||||||||||||||||||
Net overhead ratio(4) | 1.53 | 1.51 | 1.00 | 1.21 | 1.22 | 1.35 | 1.15 | ||||||||||||||||||||
Return on average assets | 1.12 | 0.77 | 1.04 | 0.80 | 0.92 | 0.98 | 1.07 | ||||||||||||||||||||
Return on average common equity | 12.31 | 8.53 | 11.94 | 9.05 | 10.31 | 10.96 | 12.05 | ||||||||||||||||||||
Return on average tangible common equity (non-GAAP)(3) | 14.68 | 10.36 | 14.48 | 11.04 | 12.62 | 13.21 | 14.82 | ||||||||||||||||||||
Average total assets | $ | 50,722,694 | $ | 49,353,426 | $ | 49,501,844 | $ | 49,118,777 | $ | 47,192,510 | $ | 49,863,793 | $ | 46,050,737 | |||||||||||||
Average total shareholders’ equity | 4,795,387 | 4,526,110 | 4,500,460 | 4,433,953 | 4,343,915 | 4,608,399 | 4,255,851 | ||||||||||||||||||||
Average loans to average deposits ratio | 88.8 | % | 86.8 | % | 83.8 | % | 81.7 | % | 83.8 | % | 86.5 | % | 85.8 | % | |||||||||||||
Period-end loans to deposits ratio | 89.2 | 87.0 | 83.6 | 82.6 | 83.3 | ||||||||||||||||||||||
Common Share Data at end of period: | |||||||||||||||||||||||||||
Market price per common share | $ | 81.55 | $ | 80.15 | $ | 92.93 | $ | 90.82 | $ | 80.37 | |||||||||||||||||
Book value per common share | 69.56 | 71.06 | 71.26 | 71.62 | 70.19 | ||||||||||||||||||||||
Tangible book value per common share (non-GAAP)(3) | 58.42 | 59.87 | 59.34 | 59.64 | 58.32 | ||||||||||||||||||||||
Common shares outstanding | 60,743,335 | 60,721,889 | 57,253,214 | 57,054,091 | 56,956,026 | ||||||||||||||||||||||
Other Data at end of period: | |||||||||||||||||||||||||||
Tier 1 leverage ratio(5) | 8.8 | % | 8.8 | % | 8.1 | % | 8.0 | % | 8.1 | % | |||||||||||||||||
Risk-based capital ratios: | |||||||||||||||||||||||||||
Tier 1 capital ratio(5) | 9.9 | 9.9 | 9.6 | 9.6 | 9.9 | ||||||||||||||||||||||
Common equity tier 1 capital ratio(5) | 8.9 | 9.0 | 8.6 | 8.6 | 8.9 | ||||||||||||||||||||||
Total capital ratio(5) | 11.7 | 11.9 | 11.6 | 11.6 | 12.1 | ||||||||||||||||||||||
Allowance for credit losses(6) | $ | 315,338 | $ | 312,192 | $ | 301,327 | $ | 299,731 | $ | 296,138 | |||||||||||||||||
Allowance for loan and unfunded lending-related commitment losses to total loans | 0.83 | % | 0.84 | % | 0.85 | % | 0.86 | % | 0.89 | % | |||||||||||||||||
Number of: | |||||||||||||||||||||||||||
Bank subsidiaries | 15 | 15 | 15 | 15 | 15 | ||||||||||||||||||||||
Banking offices | 174 | 173 | 174 | 173 | 172 | ||||||||||||||||||||||
(1) Excludes mortgage loans held-for-sale.
(2) Net revenue is net interest income and non-interest income.
(3) See “Supplemental Non-GAAP Financial Measures/Ratios” at Table 18 for additional information on this performance measure/ratio.
(4) The net overhead ratio is calculated by netting total non-interest expense and total non-interest income, annualizing this amount, and dividing by that period’s average total assets. A lower ratio indicates a higher degree of efficiency.
(5) Capital ratios for current quarter-end are estimated.
(6) The allowance for credit losses includes the allowance for loan losses, the allowance for unfunded lending-related commitments and the allowance for held-to-maturity securities losses.
WINTRUST FINANCIAL CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CONDITION
(Unaudited) | (Unaudited) | (Unaudited) | (Unaudited) | |||||||||||||||||
Sep 30, | Jun 30, | Mar 31, | Dec 31, | Sep 30, | ||||||||||||||||
(In thousands) | 2022 | 2022 | 2022 | 2021 | 2021 | |||||||||||||||
Assets | ||||||||||||||||||||
Cash and due from banks | $ | 489,590 | $ | 498,891 | $ | 462,516 | $ | 411,150 | $ | 462,244 | ||||||||||
Federal funds sold and securities purchased under resale agreements | 57 | 475,056 | 700,056 | 700,055 | 55 | |||||||||||||||
Interest-bearing deposits with banks | 3,968,605 | 3,266,541 | 4,013,597 | 5,372,603 | 5,232,315 | |||||||||||||||
Available-for-sale securities, at fair value | 2,923,653 | 2,970,121 | 2,998,898 | 2,327,793 | 2,373,478 | |||||||||||||||
Held-to-maturity securities, at amortized cost | 3,389,842 | 3,413,469 | 3,435,729 | 2,942,285 | 2,736,722 | |||||||||||||||
Trading account securities | 179 | 1,010 | 852 | 1,061 | 1,103 | |||||||||||||||
Equity securities with readily determinable fair value | 114,012 | 93,295 | 92,689 | 90,511 | 88,193 | |||||||||||||||
Federal Home Loan Bank and Federal Reserve Bank stock | 178,156 | 136,138 | 136,163 | 135,378 | 135,408 | |||||||||||||||
Brokerage customer receivables | 20,327 | 21,527 | 22,888 | 26,068 | 26,378 | |||||||||||||||
Mortgage loans held-for-sale | 376,160 | 513,232 | 606,545 | 817,912 | 925,312 | |||||||||||||||
Loans, net of unearned income | 38,167,613 | 37,053,103 | 35,280,547 | 34,789,104 | 33,264,043 | |||||||||||||||
Allowance for loan losses | (246,110 | ) | (251,769 | ) | (250,539 | ) | (247,835 | ) | (248,612 | ) | ||||||||||
Net loans | 37,921,503 | 36,801,334 | 35,030,008 | 34,541,269 | 33,015,431 | |||||||||||||||
Premises, software and equipment, net | 763,029 | 762,381 | 761,213 | 766,405 | 748,872 | |||||||||||||||
Lease investments, net | 244,822 | 223,813 | 240,656 | 242,082 | 243,933 | |||||||||||||||
Accrued interest receivable and other assets | 1,316,305 | 1,112,697 | 1,066,750 | 1,084,115 | 1,166,917 | |||||||||||||||
Goodwill | 653,079 | 654,709 | 655,402 | 655,149 | 645,792 | |||||||||||||||
Other acquisition-related intangible assets | 23,620 | 25,118 | 26,699 | 28,307 | 30,118 | |||||||||||||||
Total assets | $ | 52,382,939 | $ | 50,969,332 | $ | 50,250,661 | $ | 50,142,143 | $ | 47,832,271 | ||||||||||
Liabilities and Shareholders’ Equity | ||||||||||||||||||||
Deposits: | ||||||||||||||||||||
Non-interest-bearing | $ | 13,529,277 | $ | 13,855,844 | $ | 13,748,918 | $ | 14,179,980 | $ | 13,255,417 | ||||||||||
Interest-bearing | 29,267,914 | 28,737,482 | 28,470,404 | 27,915,605 | 26,697,141 | |||||||||||||||
Total deposits | 42,797,191 | 42,593,326 | 42,219,322 | 42,095,585 | 39,952,558 | |||||||||||||||
Federal Home Loan Bank advances | 2,316,071 | 1,166,071 | 1,241,071 | 1,241,071 | 1,241,071 | |||||||||||||||
Other borrowings | 447,215 | 482,787 | 482,516 | 494,136 | 504,527 | |||||||||||||||
Subordinated notes | 437,260 | 437,162 | 437,033 | 436,938 | 436,811 | |||||||||||||||
Junior subordinated debentures | 253,566 | 253,566 | 253,566 | 253,566 | 253,566 | |||||||||||||||
Trade date securities payable | — | — | 437 | — | 1,348 | |||||||||||||||
Accrued interest payable and other liabilities | 1,493,656 | 1,308,797 | 1,124,460 | 1,122,159 | 1,032,073 | |||||||||||||||
Total liabilities | 47,744,959 | 46,241,709 | 45,758,405 | 45,643,455 | 43,421,954 | |||||||||||||||
Shareholders’ Equity: | ||||||||||||||||||||
