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Wintrust Financial Corporation Reports Third Quarter and Year-to-Date Results

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Wintrust Financial Corporation Reports Third Quarter and Year-to-Date Results

ROSEMONT, Ill, Oct. 21, 2024 (GLOBE NEWSWIRE) — Wintrust Financial Corporation (“Wintrust”, “the Company”, “we” or “our”) (Nasdaq: WTFC) announced net income of $509.7 million or $7.67 per diluted common share for the first nine months of 2024 compared to net income of $499.1 million or $7.71 per diluted common share for the same period of 2023. Pre-tax, pre-provision income (non-GAAP) for the first nine months of 2024 totaled a record $778.1 million, compared to $751.3 million in the first nine months of 2023.

The Company recorded quarterly net income of $170.0 million or $2.47 per diluted common share for the third quarter of 2024 compared to net income of $152.4 million or $2.32 per diluted common share for the second quarter of 2024. Pre-tax, pre-provision income (non-GAAP) totaled $255.0 million as compared to $251.4 million for the second quarter of 2024.

Results of operations include those of Macatawa Bank Corporation (“Macatawa”), since the acquisition date of August 1, 2024.

Timothy S. Crane, President and Chief Executive Officer, commented, “Our net income for both the third quarter and year-to-date 2024 were driven by robust organic loan and deposit growth as well as a stable net interest margin. We believe we are well-positioned for strong financial performance as we continue our momentum in the fourth quarter of 2024 and into 2025.”

Additionally, Mr. Crane emphasized, “Net interest margin in the third quarter remained stable, decreasing one basis point as compared to the second quarter of 2024. We expect net interest margin to remain in the 3.50% range in the fourth quarter of 2024 and into 2025. Stable net interest margin coupled with continued balance sheet growth should result in net interest income growth. Focusing on growth of net interest income, disciplined expense control and maintaining our consistent credit standards should drive strong financial performance.”

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Mr. Crane continued, “I want to recognize the efforts of our new Macatawa teammates and committed Wintrust team members on the seamless transaction and a solid beginning to integration activities. Macatawa offers a unique opportunity for Wintrust to expand into the desirable west Michigan market with a compatible management team and reputable brand. The quality core deposit franchise, excess liquidity and pristine credit quality coupled with aligned values make the acquisition an ideal fit for the Company. We are thrilled to bring our product offerings to Michigan and continue Macatawa’s commitment to customer service and community involvement.”

Highlights of the third quarter of 2024:
Comparative information to the second quarter of 2024, unless otherwise noted

  • Total loans increased by approximately $2.4 billion, which includes approximately $1.3 billion of acquired balances relating to Macatawa. Excluding Macatawa, total loans increased $1.1 billion or 10% annualized.

  • Total deposits increased by approximately $3.4 billion, which includes approximately $2.3 billion of acquired balances relating to Macatawa. Excluding Macatawa, total deposits increased $1.1 billion or 9% annualized.

  • Total assets increased by $4.0 billion, which includes approximately $2.9 billion of acquired assets relating to Macatawa. Excluding Macatawa, total assets increased $1.1 billion or 8% annualized.

  • Net interest income increased to $502.6 million in the third quarter of 2024 compared to $470.6 million in the second quarter of 2024, primarily due to average earning asset growth and the addition of Macatawa for the last two months of the third quarter.

  • Non-interest income was impacted by the following:

    • Net gains on investment securities totaling $3.2 million in the third quarter of 2024 related to changes in the value of equity securities as compared to net losses of $4.3 million in the second quarter of 2024.

    • Unfavorable mortgage servicing rights (“MSRs”) related revenue totaled $11.4 million in the third quarter of 2024 compared to favorable MSRs related revenue of $2.8 million in the second quarter of 2024.

  • Non-interest expense was impacted by the following:

    • Macatawa added approximately $10.1 million of total operating expenses, including $3.0 million of core deposit intangible asset amortization.

    • Incurred acquisition related costs of $1.6 million in the third quarter of 2024 as compared to $542,000 in the second quarter of 2024.

  • Provision for credit losses totaled $22.3 million in the third quarter of 2024, including a one-time acquisition-related Day 1 provision of approximately $15.5 million, as compared to a provision for credit losses of $40.1 million in the second quarter of 2024.

  • Tangible book value per common share (non-GAAP) increased to $76.15 as of September 30, 2024 as compared to $72.01 as of June 30, 2024. See Table 18 for reconciliation of non-GAAP measures.

Mr. Crane noted, “We are very pleased with our organic loan and deposit growth rates. Excess liquidity acquired in the Macatawa transaction was deployed by funding quality loan growth and reducing exposure to wholesale and brokered funding sources. Non-interest bearing deposits remained at 21% of total deposits at the end of the third quarter of 2024 and increased $708 million compared to the second quarter of 2024. We continue to leverage our customer relationships and market positioning to generate deposits, grow loans and build long term franchise value.”

Commenting on credit quality, Mr. Crane stated, “Our credit metrics were stable. Net charge-offs totaled $26.7 million, or 23 basis points of average total loans on an annualized basis, in the third quarter of 2024 and were spread primarily across the commercial and property and casualty premium finance receivables portfolios. This compared to net charge-offs totaling $30.0 million, or 28 basis points of average total loans on an annualized basis, in the second quarter of 2024. Approximately $18.3 million of charge-offs in the current quarter were previously reserved for in the second quarter of 2024. Non-performing loans totaled $179.7 million, or 0.38% of total loans, at the end of the third quarter of 2024 compared to $174.3 million, or 0.39% of total loans, at the end of the second quarter of 2024. Total non-performing assets comprised 0.30% of total assets as of September 30, 2024, a two basis point decline compared to June 30, 2024. We continue to be conservative and proactive in reviewing credit and maintaining our consistently strong credit standards. We believe that the Company’s reserves remain appropriate and we remain diligent in our review of credit.”

In summary, Mr. Crane noted, “Our record year continued as we built upon our strong momentum with the acquisition of Macatawa. Substantial loan growth in the third quarter and inclusion of Macatawa for all three months in the fourth quarter create positive revenue momentum. We have reduced our asset sensitivity to interest rates and therefore we believe that we are well positioned for the current interest rate environment and consensus forecast for additional interest rate cuts by the Federal Reserve. Steadfast commitment to credit quality, growing net interest income and increasing our long term franchise value remain our priority.”

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The graphs below illustrate certain financial highlights of the third quarter of 2024 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/bc11950c-ec29-45c6-902d-8e0709edd6de

SUMMARY OF RESULTS:

BALANCE SHEET

Total assets increased $4.0 billion in the third quarter of 2024 as compared to the second quarter of 2024. Total loans increased by $2.4 billion as compared to the second quarter of 2024. The increase in total loans included approximately $1.3 billion of loans related to the Macatawa acquisition. The increase in loans was diversified across nearly all loan portfolios.

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Total liabilities increased by $3.1 billion in the third quarter of 2024 as compared to the second quarter of 2024 primarily due to a $3.4 billion increase in total deposits. The increase in total deposits included approximately $2.3 billion related to the Macatawa acquisition. Excess liquidity acquired in the Macatawa transaction enabled the Company to reduce brokered funding reliance by $858 million. Non-interest bearing deposits increased $708 million in the third quarter of 2024 as compared to the second quarter of 2024. Non-interest bearing deposits as a percentage of total deposits was 21% at September 30, 2024, June 30, 2024 and March 31, 2024. The Company’s loans to deposits ratio was 91.6% on September 30, 2024 as compared to 93.0% as of June 30, 2024.

For more information regarding changes in the Company’s balance sheet, see Consolidated Statements of Condition and Table 1 through Table 3 in this report.

NET INTEREST INCOME

For the third quarter of 2024, net interest income totaled $502.6 million, an increase of $32.0 million as compared to the second quarter of 2024. The $32.0 million increase in net interest income in the third quarter of 2024 compared to the second quarter of 2024 was primarily due to a $3.1 billion increase in average earning assets, which included the addition of Macatawa in the third quarter. These benefits were partially offset by a one basis point decrease in the net interest margin.

Net interest margin was 3.49% (3.51% on a fully taxable-equivalent basis, non-GAAP) during the third quarter of 2024 compared to 3.50% (3.52% on a fully taxable-equivalent basis, non-GAAP) during the second quarter of 2024. The net interest margin decrease as compared to the second quarter of 2024 was primarily due to a one basis point decrease in the yield on earning assets and one basis point decrease in the net free funds contribution. These declines were partially offset by a one basis point decrease in rate paid on interest-bearing liabilities. The one basis point decrease in yield on earnings assets in the third quarter of 2024 as compared to the second quarter of 2024 was primarily due to an increase in average interest-bearing cash as a percentage of average quarterly earning assets associated with the Macatawa acquisition. The one basis point decrease in the rate paid on interest-bearing liabilities in the third quarter of 2024 as compared to the second quarter of 2024 was primarily due to a one basis point decrease in rate paid on interest-bearing deposits.

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For more information regarding net interest income, see Table 4 through Table 8 in this report.

ASSET QUALITY

The allowance for credit losses totaled $436.2 million as of September 30, 2024, relatively unchanged compared to $437.6 million as of June 30, 2024. A provision for credit losses totaling $22.3 million was recorded for the third quarter of 2024 as compared to $40.1 million recorded in the second quarter of 2024. Provision for credit losses in the third quarter of 2024 included Day 1 provision for credit losses of approximately $15.5 million related to the Macatawa acquisition. The lower provision for credit losses recognized in the third quarter of 2024 compared to the second quarter of 2024 was primarily attributable to lower required specific reserves on nonaccrual loans, improved forecasted macroeconomic conditions, and, to a lesser extent, portfolio changes related to improved risk rating mix and shorter life of loan. For more information regarding the allowance for credit losses and provision for credit losses, see Table 11 in this report.

Management believes the allowance for credit losses is appropriate to account for expected credit losses. The Current Expected Credit Losses 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, 2024, June 30, 2024, and March 31, 2024 is shown on Table 12 of this report.

Net charge-offs totaled $26.7 million in the third quarter of 2024, a decrease of $3.3 million as compared to $30.0 million of net charge-offs in the second quarter of 2024. Approximately $18.3 million of charge-offs in the current quarter were previously reserved for in the second quarter of 2024. Net charge-offs as a percentage of average total loans were 23 basis points in the third quarter of 2024 on an annualized basis compared to 28 basis points on an annualized basis in the second quarter of 2024. For more information regarding net charge-offs, see Table 10 in this report.

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The Company’s delinquency rates remain low and manageable. For more information regarding past due loans, see Table 13 in this report.

Non-performing assets totaled $193.4 million and comprised 0.30% of total assets as of September 30, 2024, as compared to $194.0 million, or 0.32% of total assets, as of June 30, 2024. Non-performing loans totaled $179.7 million and comprised 0.38% of total loans at September 30, 2024, as compared to $174.3 million and 0.39% of total loans at June 30, 2024. The increase in the third quarter of 2024 was primarily due to an increase in certain credits within the commercial portfolios becoming nonaccrual. For more information regarding non-performing assets, see Table 14 in this report.

Credit metrics remained stable and at relatively low levels in the third quarter of 2024.

NON-INTEREST INCOME

Wealth management revenue increased by $1.8 million in the third quarter of 2024 as compared to the second quarter of 2024 primarily due to the Macatawa acquisition and increased asset management fees from higher assets under management during the period. Wealth management revenue is comprised of the trust and asset management revenue of Wintrust Private 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.

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Mortgage banking revenue decreased by $13.2 million in the third quarter of 2024 as compared to the second quarter of 2024 primarily due to $11.4 million unfavorable MSR related revenues, net of servicing hedge, in the third quarter of 2024 compared to $2.8 million favorable MSR related revenues in the second quarter of 2024 and slightly decreased production revenue due to reduced production margin. This was partially offset by a favorable adjustment to the Company’s held-for-sale portfolio of early buy-out exercised loans guaranteed by U.S. government agencies, which are held at fair value, of $3.5 million in the third quarter of 2024 compared to a $642,000 favorable adjustment in the second quarter of 2024. The Company monitors the relationship of these assets and seeks to minimize the earnings impact of fair value changes. For more information regarding mortgage banking revenue, see Table 16 in this report.

The Company recognized $3.2 million in net gains on investment securities in the third quarter of 2024 as compared to $4.3 million in net losses in the second quarter of 2024. The net gains in the third quarter of 2024 were primarily the result of unrealized gains on the Company’s equity investment securities with a readily determinable fair value.

Fees from covered call options decreased by $1.1 million in the third quarter of 2024 as compared to the second quarter of 2024. 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.

Other income decreased by $5.1 million in the third quarter of 2024 compared to the second quarter of 2024 primarily due to a gain recognized in the second quarter of 2024 associated with our property and casualty insurance premium finance receivable loan sale transaction.

For more information regarding non-interest income, see Table 15 in this report.

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NON-INTEREST EXPENSE

Non-interest expenses totaled $360.7 million in the third quarter of 2024, increasing $20.3 million as compared to $340.4 million in the second quarter of 2024. The Macatawa acquisition impacted this increase by approximately $10.1 million of non-interest expense associated with Macatawa, which included $3.0 million in amortization of other acquisition-related intangible assets in the third quarter of 2024.

Salaries and employee benefits expense increased by $12.7 million in the third quarter of 2024 as compared to the second quarter of 2024. The $12.7 million increase is primarily related to higher incentive compensation expense due to elevated bonus accruals in the third quarter of 2024 as well as increased salaries expense due to the Macatawa acquisition and additional staffing to support the Company’s growth.

Software and equipment expense increased $2.3 million in the third quarter of 2024 as compared to the second quarter of 2024 primarily due to software expense relating to upgrading and maintenance of information technology and security infrastructure as well as the Macatawa acquisition.

Advertising and marketing expenses in the third quarter of 2024 totaled $18.2 million, which is a $803,000 increase as compared to the second quarter of 2024. 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. Generally, these expenses are elevated in the second and third quarters of each year.

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For more information regarding non-interest expense, see Table 17 in this report.

INCOME TAXES

The Company recorded income tax expense of $62.7 million in the third quarter compared to $59.0 million in the second quarter of 2024. The effective tax rates were 26.95% in the third quarter of 2024 compared to 27.90% in the second quarter of 2024. The effective tax rates were impacted by an overall lower level of provision for state income tax expense in the comparable periods.

BUSINESS UNIT SUMMARY

Community Banking

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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 2024, the community banking unit expanded its commercial, commercial real estate and residential real estate loan portfolios.

Mortgage banking revenue was $16.0 million for the third quarter of 2024, a decrease of $13.2 million as compared to the second quarter of 2024, primarily due to $11.4 million unfavorable MSR related revenues, net of servicing hedge, in the third quarter of 2024 compared to $2.8 million favorable MSR related revenues in the second quarter of 2024 and slightly decreased production revenue due to reduced production margin. This was partially offset by a favorable adjustment to the Company’s held-for-sale portfolio of early buy-out exercised loans guaranteed by U.S. government agencies, which are held at fair value, of $3.5 million in the third quarter of 2024 compared to a $642,000 favorable adjustment in the second quarter of 2024. Service charges on deposit accounts totaled $16.4 million in the third quarter of 2024, which was relatively stable compared to the second quarter of 2024. The Company’s gross commercial and commercial real estate loan pipelines remained solid as of September 30, 2024 indicating momentum for expected continued loan growth in the fourth quarter of 2024.

Specialty Finance

Through its specialty finance unit, the Company offers financing of insurance premiums for businesses and individuals, equipment financing through structured loans and lease products to customers in a variety of industries, accounts receivable financing and value-added, out-sourced administrative services and other services. Originations within the insurance premium financing receivables portfolios were $4.8 billion during the third quarter of 2024. Average balances increased by $259.8 million, as compared to the second quarter of 2024. The Company’s leasing portfolio balance remained stable in the third quarter of 2024, with its portfolio of assets, including capital leases, loans and equipment on operating leases, totaling $3.7 billion as of September 30, 2024 and June 30, 2024. Revenues from the Company’s out-sourced administrative services business were $1.5 million in the third quarter of 2024, which was relatively stable compared to the second quarter of 2024.

Wealth Management

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Through four separate subsidiaries within its wealth management unit, the Company offers a full range of wealth management services, including trust and investment services, tax-deferred like-kind exchange services, asset management, and securities brokerage services. See “Items Impacting Comparative Results,” regarding the sale of the Company’s Retirement Benefits Advisors (“RBA”) division during the first quarter of 2024. Wealth management revenue totaled $37.2 million in the third quarter of 2024, relatively stable as compared to the second quarter of 2024. At September 30, 2024, the Company’s wealth management subsidiaries had approximately $51.1 billion of assets under administration, which included $8.0 billion of assets owned by the Company and its subsidiary banks.

ITEMS IMPACTING COMPARATIVE FINANCIAL RESULTS

Business Combination

On August 1, 2024, the Company completed its previously announced acquisition of Macatawa, the parent company of Macatawa Bank. In conjunction with the completed acquisition, the Company issued approximately 4.7 million shares of common stock. Macatawa operates 26 full-service branches located throughout communities in Kent, Ottawa and northern Allegan counties in the state of Michigan. Macatawa offers a full range of banking, retail and commercial lending, wealth management and ecommerce services to individuals, businesses and governmental entities. As of August 1, 2024, Macatawa had approximately $2.9 billion in assets, $2.3 billion in deposits and $1.3 billion in loans. The Company preliminarily recorded goodwill of approximately $144.6 million on the purchase.

Division Sale

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In the first quarter of 2024, the Company sold its RBA division and recorded a gain of approximately $20.0 million in other non-interest income from the sale.

Business Combination

On April 3, 2023, the Company completed its acquisition of Rothschild & Co Asset Management US Inc. and Rothschild & Co Risk Based Investments LLC from Rothschild & Co North America Inc. As the transaction was determined to be a business combination, the Company recorded goodwill of approximately $2.6 million on the purchase.

WINTRUST FINANCIAL CORPORATION
Key Operating Measures

Wintrust’s key operating measures and growth rates for the third quarter of 2024, as compared to the second quarter of 2024 (sequential quarter) and third quarter of 2023 (linked quarter), are shown in the table below:

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% or(1)
basis point  (bp) change from
2nd Quarter
2024

 

% or
basis point  (bp) change from
3rd Quarter
2023

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Three Months Ended

 

(Dollars in thousands, except per share data)

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Sep 30, 2024

 

Jun 30, 2024

 

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Sep 30, 2023

 

Net income

 

$

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170,001

 

 

$

152,388

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$

164,198

 

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12

 

%

 

4

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%

Pre-tax income, excluding provision for credit losses (non-GAAP) (2)

 

 

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255,043

 

 

 

251,404

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244,781

 

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1

 

 

 

4

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Net income per common share – Diluted

 

 

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2.47

 

 

 

2.32

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2.53

 

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6

 

 

 

(2)

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Cash dividends declared per common share

 

 

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0.45

 

 

 

0.45

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0.40

 

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13

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Net revenue (3)

 

 

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615,730

 

 

 

591,757

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574,836

 

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4

 

 

 

7

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Net interest income

 

 

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502,583

 

 

 

470,610

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462,358

 

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7

 

 

 

9

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Net interest margin

 

 

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3.49

%

 

 

3.50

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%

 

 

3.60

%

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(1)

 

bps

 

(11)

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bps

Net interest margin – fully taxable-equivalent (non-GAAP) (2)

 

 

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3.51

 

 

 

3.52

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3.62

 

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(1)

 

 

 

(11)

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Net overhead ratio (4)

 

 

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1.62

 

 

 

1.53

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1.59

 

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9

 

 

 

3

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Return on average assets

 

 

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1.11

 

 

 

1.07

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1.20

 

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4

 

 

 

(9)

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Return on average common equity

 

 

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11.63

 

 

 

11.61

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13.35

 

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2

 

 

 

(172)

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Return on average tangible common equity (non-GAAP) (2)

 

 

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13.92

 

 

 

13.49

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15.73

 

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43

 

 

 

(181)

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At end of period

 

 

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Total assets

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$

63,788,424

 

 

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$

59,781,516

 

 

$

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55,555,246

 

27

 

%

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15

 

%

Total loans (5)

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47,067,447

 

 

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44,675,531

 

 

 

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41,446,032

 

21

 

 

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14

 

 

Total deposits

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51,404,966

 

 

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48,049,026

 

 

 

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44,992,686

 

28

 

 

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14

 

 

Total shareholders’ equity

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6,399,714

 

 

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5,536,628

 

 

 

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5,015,613

 

62

 

 

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28

 

 

(1)   Period-end balance sheet percentage changes are annualized.
(2)   See Table 18: 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.

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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

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Nine Months Ended

(Dollars in thousands, except per share data)

 

Sep 30, 2024

 

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Jun 30, 2024

 

Mar 31, 2024

 

Dec 31, 2023

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Sep 30, 2023

Sep 30, 2024

 

Sep 30, 2023

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Selected Financial Condition Data (at end of period):

 

 

 

Total assets

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$

63,788,424

 

 

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$

59,781,516

 

 

$

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57,576,933

 

 

$

56,259,934

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$

55,555,246

 

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Total loans(1)

 

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47,067,447

 

 

 

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44,675,531

 

 

 

43,230,706

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42,131,831

 

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41,446,032

 

 

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Total deposits

 

 

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51,404,966

 

 

 

48,049,026

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46,448,858

 

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45,397,170

 

 

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44,992,686

 

 

 

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Total shareholders’ equity

 

 

6,399,714

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5,536,628

 

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5,436,400

 

 

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5,399,526

 

 

 

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5,015,613

 

 

 

 

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Selected Statements of Income Data:

 

 

 

 

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Net interest income

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$

502,583

 

 

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$

470,610

 

 

$

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464,194

 

 

$

469,974

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$

462,358

 

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$

1,437,387

 

 

$

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1,367,890

 

Net revenue(2)

 

 

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615,730

 

 

 

591,757

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604,774

 

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570,803

 

 

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574,836

 

 

1,812,261

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1,701,167

 

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Net income

 

 

170,001

 

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152,388

 

 

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187,294

 

 

 

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123,480

 

 

 

164,198

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509,683

 

 

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499,146

 

Pre-tax income, excluding provision for credit losses (non-GAAP)(3)

 

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255,043

 

 

 

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251,404

 

 

 

271,629

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208,151

 

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244,781

 

 

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778,076

 

 

 

751,320

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Net income per common share – Basic

 

 

2.51

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2.35

 

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2.93

 

 

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1.90

 

 

 

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2.57

 

 

7.79

 

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7.82

 

Net income per common share – Diluted

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2.47

 

 

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2.32

 

 

 

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2.89

 

 

 

1.87

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2.53

 

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7.67

 

 

 

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7.71

 

Cash dividends declared per common share

 

 

Advertisement

0.45

 

 

 

0.45

Advertisement

 

 

 

0.45

 

Advertisement

 

 

0.40

 

 

Advertisement

 

0.40

 

 

1.35

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1.20

 

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Selected Financial Ratios and Other Data:

 

 

 

 

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Performance Ratios:

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Net interest margin

 

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3.49

%

 

 

Advertisement

3.50

%

 

 

3.57

Advertisement

%

 

 

3.62

%

Advertisement

 

 

3.60

%

 

Advertisement

3.52

%

 

 

3.68

Advertisement

%

Net interest margin – fully taxable-equivalent (non-GAAP)(3)

 

 

3.51

Advertisement

 

 

 

3.52

 

Advertisement

 

 

3.59

 

 

Advertisement

 

3.64

 

 

 

Advertisement

3.62

 

 

3.54

 

Advertisement

 

 

3.70

 

Non-interest income to average assets

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0.74

 

 

Advertisement

 

0.85

 

 

 

Advertisement

1.02

 

 

 

0.73

Advertisement

 

 

 

0.82

 

Advertisement

 

0.86

 

 

 

Advertisement

0.84

 

Non-interest expense to average assets

 

 

Advertisement

2.36

 

 

 

2.38

Advertisement

 

 

 

2.41

 

Advertisement

 

 

2.62

 

 

Advertisement

 

2.41

 

 

2.38

Advertisement

 

 

 

2.39

 

Advertisement

Net overhead ratio(4)

 

 

1.62

 

Advertisement

 

 

1.53

 

 

Advertisement

 

1.39

 

 

 

Advertisement

1.89

 

 

 

1.59

Advertisement

 

 

1.52

 

 

Advertisement

 

1.55

 

Return on average assets

 

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1.11

 

 

 

Advertisement

1.07

 

 

 

1.35

Advertisement

 

 

 

0.89

 

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1.20

 

 

Advertisement

1.17

 

 

 

1.26

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Return on average common equity

 

 

11.63

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11.61

 

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14.42

 

 

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9.93

 

 

 

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13.35

 

 

12.52

 

Advertisement

 

 

13.91

 

Return on average tangible common equity (non-GAAP)(3)

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13.92

 

 

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13.49

 

 

 

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16.75

 

 

 

11.73

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15.73

 

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14.69

 

 

 

Advertisement

16.43

 

Average total assets

 

$

Advertisement

60,915,283

 

 

$

57,493,184

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$

55,602,695

 

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$

55,017,075

 

 

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$

54,381,981

 

$

58,014,347

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$

53,028,199

 

Advertisement

Average total shareholders’ equity

 

 

5,990,429

 

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5,450,173

 

 

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5,440,457

 

 

 

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5,066,196

 

 

 

5,083,883

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5,628,346

 

 

Advertisement

 

5,008,648

 

Average loans to average deposits ratio

 

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93.8

%

 

 

Advertisement

95.1

%

 

 

94.5

Advertisement

%

 

 

92.9

%

Advertisement

 

 

92.4

%

 

Advertisement

94.5

%

 

 

93.2

Advertisement

%

Period-end loans to deposits ratio

 

 

91.6

Advertisement

 

 

 

93.0

 

Advertisement

 

 

93.1

 

 

Advertisement

 

92.8

 

 

 

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92.1

 

 

 

 

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Common Share Data at end of period:

 

 

 

 

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Market price per common share

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$

108.53

 

 

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$

98.56

 

 

$

Advertisement

104.39

 

 

$

92.75

Advertisement

 

 

$

75.50

 

Advertisement

 

 

 

Book value per common share

 

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90.06

 

 

 

Advertisement

82.97

 

 

 

81.38

Advertisement

 

 

 

81.43

 

Advertisement

 

 

75.19

 

 

Advertisement

 

 

Tangible book value per common share (non-GAAP)(3)

 

 

Advertisement

76.15

 

 

 

72.01

Advertisement

 

 

 

70.40

 

Advertisement

 

 

70.33

 

 

Advertisement

 

64.07

 

 

 

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Common shares outstanding

 

 

66,481,543

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61,760,139

 

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61,736,715

 

 

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61,243,626

 

 

 

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61,222,058

 

 

 

 

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Other Data at end of period:

 

 

 

 

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Common equity to assets ratio

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9.4

%

 

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8.6

%

 

 

Advertisement

8.7

%

 

 

8.9

Advertisement

%

 

 

8.3

%

Advertisement

 

 

 

Tangible common equity ratio (non-GAAP)(3)

 

Advertisement

 

8.1

 

 

 

Advertisement

7.5

 

 

 

7.6

Advertisement

 

 

 

7.7

 

Advertisement

 

 

7.1

 

 

Advertisement

 

 

Tier 1 leverage ratio(5)

 

 

Advertisement

9.4

 

 

 

9.3

Advertisement

 

 

 

9.4

 

Advertisement

 

 

9.3

 

 

Advertisement

 

9.2

 

 

 

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Risk-based capital ratios:

 

 

 

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Tier 1 capital ratio(5)

 

 

10.5

 

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10.3

 

 

Advertisement

 

10.3

 

 

 

Advertisement

10.3

 

 

 

10.2

Advertisement

 

 

 

 

Common equity tier 1 capital ratio(5)

Advertisement

 

 

9.8

 

 

Advertisement

 

9.5

 

 

 

Advertisement

9.5

 

 

 

9.4

Advertisement

 

 

 

9.3

 

Advertisement

 

 

 

Total capital ratio(5)

 

Advertisement

 

12.2

 

 

 

Advertisement

12.1

 

 

 

12.2

Advertisement

 

 

 

12.1

 

Advertisement

 

 

12.0

 

 

Advertisement

 

 

Allowance for credit losses(6)

 

$

Advertisement

436,193

 

 

$

437,560

Advertisement

 

 

$

427,504

 

Advertisement

 

$

427,612

 

 

Advertisement

$

399,531

 

 

 

Advertisement

 

Allowance for loan and unfunded lending-related commitment losses to total loans

 

 

0.93

Advertisement

%

 

 

0.98

%

Advertisement

 

 

0.99

%

 

Advertisement

 

1.01

%

 

 

Advertisement

0.96

%

 

 

 

Advertisement

Number of:

 

 

 

 

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Bank subsidiaries

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16

 

 

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15

 

 

 

Advertisement

15

 

 

 

15

Advertisement

 

 

 

15

 

Advertisement

 

 

 

Banking offices

 

Advertisement

 

203

 

 

 

Advertisement

177

 

 

 

176

Advertisement

 

 

 

174

 

Advertisement

 

 

174

 

 

Advertisement

 

 

(1)   Excludes mortgage loans held-for-sale.
(2)   Net revenue is net interest income plus non-interest income.
(3)   See Table 18: 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

 

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(Unaudited)

 

(Unaudited)

 

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(Unaudited)

 

 

 

(Unaudited)

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Sep 30,

 

Jun 30,

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Mar 31,

 

Dec 31,

 

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Sep 30,

(In thousands)

 

2024

 

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2024

 

2024

 

2023

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2023

Assets

 

 

Advertisement

 

 

 

 

 

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Cash and due from banks

 

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$

725,465

 

 

$

Advertisement

415,462

 

 

$

379,825

Advertisement

 

 

$

423,404

 

Advertisement

 

$

418,088

 

Federal funds sold and securities purchased under resale agreements

Advertisement

 

 

5,663

 

 

Advertisement

 

62

 

 

 

Advertisement

61

 

 

 

60

Advertisement

 

 

 

60

 

Advertisement

Interest-bearing deposits with banks

 

 

3,648,117

 

Advertisement

 

 

2,824,314

 

 

Advertisement

 

2,131,077

 

 

 

Advertisement

2,084,323

 

 

 

2,448,570

Advertisement

 

Available-for-sale securities, at fair value

 

 

3,912,232

Advertisement

 

 

 

4,329,957

 

Advertisement

 

 

4,387,598

 

 

Advertisement

 

3,502,915

 

 

 

Advertisement

3,611,835

 

Held-to-maturity securities, at amortized cost

 

 

Advertisement

3,677,420

 

 

 

3,755,924

Advertisement

 

 

 

3,810,015

 

Advertisement

 

 

3,856,916

 

 

Advertisement

 

3,909,150

 

Trading account securities

 

Advertisement

 

3,472

 

 

 

Advertisement

4,134

 

 

 

2,184

Advertisement

 

 

 

4,707

 

Advertisement

 

 

1,663

 

Equity securities with readily determinable fair value

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125,310

 

 

Advertisement

 

112,173

 

 

 

Advertisement

119,777

 

 

 

139,268

Advertisement

 

 

 

134,310

 

Advertisement

Federal Home Loan Bank and Federal Reserve Bank stock

 

 

266,908

 

Advertisement

 

 

256,495

 

 

Advertisement

 

224,657

 

 

 

Advertisement

205,003

 

 

 

204,040

Advertisement

 

Brokerage customer receivables

 

 

16,662

Advertisement

 

 

 

13,682

 

Advertisement

 

 

13,382

 

 

Advertisement

 

10,592

 

 

 

Advertisement

14,042

 

Mortgage loans held-for-sale, at fair value

 

 

Advertisement

461,067

 

 

 

411,851

Advertisement

 

 

 

339,884

 

Advertisement

 

 

292,722

 

 

Advertisement

 

304,808

 

Loans, net of unearned income

 

Advertisement

 

47,067,447

 

 

 

Advertisement

44,675,531

 

 

 

43,230,706

Advertisement

 

 

 

42,131,831

 

Advertisement

 

 

41,446,032

 

Allowance for loan losses

Advertisement

 

 

(360,279

)

 

Advertisement

 

(363,719

)

 

 

Advertisement

(348,612

)

 

 

(344,235

Advertisement

)

 

 

(315,039

)

Advertisement

Net loans

 

 

46,707,168

 

Advertisement

 

 

44,311,812

 

 

Advertisement

 

42,882,094

 

 

 

Advertisement

41,787,596

 

 

 

41,130,993

Advertisement

 

Premises, software and equipment, net

 

 

772,002

Advertisement

 

 

 

722,295

 

Advertisement

 

 

744,769

 

 

Advertisement

 

748,966

 

 

 

Advertisement

747,501

 

Lease investments, net

 

 

Advertisement

270,171

 

 

 

275,459

Advertisement

 

 

 

283,557

 

Advertisement

 

 

281,280

 

 

Advertisement

 

275,152

 

Accrued interest receivable and other assets

 

Advertisement

 

1,721,090

 

 

 

Advertisement

1,671,334

 

 

 

1,580,142

Advertisement

 

 

 

1,551,899

 

Advertisement

 

 

1,674,681

 

Trade date securities receivable

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551,031

 

 

Advertisement

 

 

 

 

Advertisement

 

 

 

690,722

Advertisement

 

 

 

 

Advertisement

Goodwill

 

 

800,780

 

Advertisement

 

 

655,955

 

 

Advertisement

 

656,181

 

 

 

Advertisement

656,672

 

 

 

656,109

Advertisement

 

Other acquisition-related intangible assets

 

 

123,866

Advertisement

 

 

 

20,607

 

Advertisement

 

 

21,730

 

 

Advertisement

 

22,889

 

 

 

Advertisement

24,244

 

Total assets

 

$

Advertisement

63,788,424

 

 

$

59,781,516

Advertisement

 

 

$

57,576,933

 

Advertisement

 

$

56,259,934

 

 

Advertisement

$

55,555,246

 

Liabilities and Shareholders’ Equity

 

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Deposits:

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Non-interest-bearing

 

$

10,739,132

 

Advertisement

 

$

10,031,440

 

 

Advertisement

$

9,908,183

 

 

$

Advertisement

10,420,401

 

 

$

10,347,006

Advertisement

 

Interest-bearing

 

 

40,665,834

Advertisement

 

 

 

38,017,586

 

Advertisement

 

 

36,540,675

 

 

Advertisement

 

34,976,769

 

 

 

Advertisement

34,645,680

 

Total deposits

 

 

Advertisement

51,404,966

 

 

 

48,049,026

Advertisement

 

 

 

46,448,858

 

Advertisement

 

 

45,397,170

 

 

Advertisement

 

44,992,686

 

Federal Home Loan Bank advances

 

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3,171,309

 

 

 

Advertisement

3,176,309

 

 

 

2,676,751

Advertisement

 

 

 

2,326,071

 

Advertisement

 

 

2,326,071

 

Other borrowings

Advertisement

 

 

647,043

 

 

Advertisement

 

606,579

 

 

 

Advertisement

575,408

 

 

 

645,813

Advertisement

 

 

 

643,999

 

Advertisement

Subordinated notes

 

 

298,188

 

Advertisement

 

 

298,113

 

 

Advertisement

 

437,965

 

 

 

Advertisement

437,866

 

 

 

437,731

Advertisement

 

Junior subordinated debentures

 

 

253,566

Advertisement

 

 

 

253,566

 

Advertisement

 

 

253,566

 

 

Advertisement

 

253,566

 

 

 

Advertisement

253,566

 

Accrued interest payable and other liabilities

 

 

Advertisement

1,613,638

 

 

 

1,861,295

Advertisement

 

 

 

1,747,985

 

Advertisement

 

 

1,799,922

 

 

Advertisement

 

1,885,580

 

Total liabilities

 

Advertisement

 

57,388,710

 

 

 

Advertisement

54,244,888

 

 

 

52,140,533

Advertisement

 

 

 

50,860,408

 

Advertisement

 

 

50,539,633

 

Shareholders’ Equity:

Advertisement

 

 

 

 

 

Advertisement

 

 

 

 

 

Advertisement

Preferred stock

 

 

412,500

 

Advertisement

 

 

412,500

 

 

Advertisement

 

412,500

 

 

 

Advertisement

412,500

 

 

 

412,500

Advertisement

 

Common stock

 

 

66,546

Advertisement

 

 

 

61,825

 

Advertisement

 

 

61,798

 

 

Advertisement

 

61,269

 

 

 

Advertisement

61,244

 

Surplus

 

 

Advertisement

2,470,228

 

 

 

1,964,645

Advertisement

 

 

 

1,954,532

 

Advertisement

 

 

1,943,806

 

 

Advertisement

 

1,933,226

 

Treasury stock

 

Advertisement

 

(6,098

)

 

 

Advertisement

(5,760

)

 

 

(5,757

Advertisement

)

 

 

(2,217

)

Advertisement

 

 

(1,966

)

Retained earnings

Advertisement

 

 

3,748,715

 

 

Advertisement

 

3,615,616

 

 

 

Advertisement

3,498,475

 

 

 

3,345,399

Advertisement

 

 

 

3,253,332

 

Advertisement

Accumulated other comprehensive loss

 

 

(292,177

)

Advertisement

 

 

(512,198

)

 

Advertisement

 

(485,148

)

 

 

Advertisement

(361,231

)

 

 

(642,723

Advertisement

)

Total shareholders’ equity

 

 

6,399,714

Advertisement

 

 

 

5,536,628

 

Advertisement

 

 

5,436,400

 

 

Advertisement

 

5,399,526

 

 

 

Advertisement

5,015,613

 

Total liabilities and shareholders’ equity

 

$

Advertisement

63,788,424

 

 

$

59,781,516

Advertisement

 

 

$

57,576,933

 

Advertisement

 

$

56,259,934

 

 

Advertisement

$

55,555,246

 

WINTRUST FINANCIAL CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED)

 

Advertisement

Three Months Ended

Nine Months Ended

(Dollars in thousands, except per share data)

Sep 30,
2024

 

Advertisement

Jun 30,
2024

 

Mar 31,
2024

 

Dec 31,
2023

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Sep 30,
2023

Sep 30, 2024

 

Sep 30, 2023

Advertisement

Interest income

 

 

 

 

Advertisement

 

 

 

 

 

Advertisement

 

 

 

Interest and fees on loans

$

Advertisement

794,163

 

 

$

749,812

Advertisement

 

 

$

710,341

 

Advertisement

$

694,943

 

 

$

Advertisement

666,260

 

$

2,254,316

 

Advertisement

 

$

1,846,009

 

Mortgage loans held-for-sale

Advertisement

 

6,233

 

 

 

Advertisement

5,434

 

 

 

4,146

Advertisement

 

 

4,318

 

 

Advertisement

 

4,767

 

 

15,813

Advertisement

 

 

 

12,473

 

Advertisement

Interest-bearing deposits with banks

 

32,608

 

 

Advertisement

 

19,731

 

 

 

Advertisement

16,658

 

 

21,762

 

Advertisement

 

 

26,866

 

 

Advertisement

68,997

 

 

 

57,216

Advertisement

 

Federal funds sold and securities purchased under resale agreements

 

277

 

Advertisement

 

 

17

 

 

Advertisement

 

19

 

 

578

Advertisement

 

 

 

1,157

 

Advertisement

 

313

 

 

 

Advertisement

1,228

 

Investment securities

 

69,592

Advertisement

 

 

 

69,779

 

Advertisement

 

 

69,678

 

 

Advertisement

68,237

 

 

 

59,164

Advertisement

 

 

209,049

 

 

Advertisement

 

170,350

 

Trading account securities

 

Advertisement

11

 

 

 

13

Advertisement

 

 

 

18

 

Advertisement

 

15

 

 

 

Advertisement

6

 

 

42

 

Advertisement

 

 

26

 

Federal Home Loan Bank and Federal Reserve Bank stock

Advertisement

 

5,451

 

 

 

Advertisement

4,974

 

 

 

4,478

Advertisement

 

 

3,792

 

 

Advertisement

 

3,896

 

 

14,903

Advertisement

 

 

 

11,120

 

Advertisement

Brokerage customer receivables

 

269

 

 

Advertisement

 

219

 

 

 

Advertisement

175

 

 

203

 

Advertisement

 

 

284

 

 

Advertisement

663

 

 

 

844

Advertisement

 

Total interest income

 

908,604

 

Advertisement

 

 

849,979

 

 

Advertisement

 

805,513

 

 

793,848

Advertisement

 

 

 

762,400

 

Advertisement

 

2,564,096

 

 

 

Advertisement

2,099,266

 

Interest expense

 

 

Advertisement

 

 

 

 

 

Advertisement

 

 

 

 

 

Advertisement

Interest on deposits

 

362,019

 

 

Advertisement

 

335,703

 

 

 

Advertisement

299,532

 

 

285,390

 

Advertisement

 

 

262,783

 

 

Advertisement

997,254

 

 

 

621,080

Advertisement

 

Interest on Federal Home Loan Bank advances

 

26,254

 

Advertisement

 

 

24,797

 

 

Advertisement

 

22,048

 

 

18,316

Advertisement

 

 

 

17,436

 

Advertisement

 

73,099

 

 

 

Advertisement

53,970

 

Interest on other borrowings

 

9,013

Advertisement

 

 

 

8,700

 

Advertisement

 

 

9,248

 

 

Advertisement

9,557

 

 

 

9,384

Advertisement

 

 

26,961

 

 

Advertisement

 

25,723

 

Interest on subordinated notes

 

Advertisement

3,712

 

 

 

5,185

Advertisement

 

 

 

5,487

 

Advertisement

 

5,522

 

 

 

Advertisement

5,491

 

 

14,384

 

Advertisement

 

 

16,502

 

Interest on junior subordinated debentures

Advertisement

 

5,023

 

 

 

Advertisement

4,984

 

 

 

5,004

Advertisement

 

 

5,089

 

 

Advertisement

 

4,948

 

 

15,011

Advertisement

 

 

 

14,101

 

Advertisement

Total interest expense

 

406,021

 

 

Advertisement

 

379,369

 

 

 

Advertisement

341,319

 

 

323,874

 

Advertisement

 

 

300,042

 

 

Advertisement

1,126,709

 

 

 

731,376

Advertisement

 

Net interest income

 

502,583

 

Advertisement

 

 

470,610

 

 

Advertisement

 

464,194

 

 

469,974

Advertisement

 

 

 

462,358

 

Advertisement

 

1,437,387

 

 

 

Advertisement

1,367,890

 

Provision for credit losses

 

22,334

Advertisement

 

 

 

40,061

 

Advertisement

 

 

21,673

 

 

Advertisement

42,908

 

 

 

19,923

Advertisement

 

 

84,068

 

 

Advertisement

 

71,482

 

Net interest income after provision for credit losses

 

Advertisement

480,249

 

 

 

430,549

Advertisement

 

 

 

442,521

 

Advertisement

 

427,066

 

 

 

Advertisement

442,435

 

 

1,353,319

 

Advertisement

 

 

1,296,408

 

Non-interest income

Advertisement

 

 

 

 

 

Advertisement

 

 

 

 

 

Advertisement

 

 

Wealth management

 

37,224

Advertisement

 

 

 

35,413

 

Advertisement

 

 

34,815

 

 

Advertisement

33,275

 

 

 

33,529

Advertisement

 

 

107,452

 

 

Advertisement

 

97,332

 

Mortgage banking

 

Advertisement

15,974

 

 

 

29,124

Advertisement

 

 

 

27,663

 

Advertisement

 

7,433

 

 

 

Advertisement

27,395

 

 

72,761

 

Advertisement

 

 

75,640

 

Service charges on deposit accounts

Advertisement

 

16,430

 

 

 

Advertisement

15,546

 

 

 

14,811

Advertisement

 

 

14,522

 

 

Advertisement

 

14,217

 

 

46,787

Advertisement

 

 

 

40,728

 

Advertisement

Gains (losses) on investment securities, net

 

3,189

 

 

Advertisement

 

(4,282

)

 

 

Advertisement

1,326

 

 

2,484

 

Advertisement

 

 

(2,357

)

 

Advertisement

233

 

 

 

(959

Advertisement

)

Fees from covered call options

 

988

 

Advertisement

 

 

2,056

 

 

Advertisement

 

4,847

 

 

4,679

Advertisement

 

 

 

4,215

 

Advertisement

 

7,891

 

 

 

Advertisement

17,184

 

Trading (losses) gains, net

 

(130

Advertisement

)

 

 

70

 

Advertisement

 

 

677

 

 

Advertisement

(505

)

 

 

728

Advertisement

 

 

617

 

 

Advertisement

 

1,647

 

Operating lease income, net

 

Advertisement

15,335

 

 

 

13,938

Advertisement

 

 

 

14,110

 

Advertisement

 

14,162

 

 

 

Advertisement

13,863

 

 

43,383

 

Advertisement

 

 

39,136

 

Other

Advertisement

 

24,137

 

 

 

Advertisement

29,282

 

 

 

42,331

Advertisement

 

 

24,779

 

 

Advertisement

 

20,888

 

 

95,750

Advertisement

 

 

 

62,569

 

Advertisement

Total non-interest income

 

113,147

 

 

Advertisement

 

121,147

 

 

 

Advertisement

140,580

 

 

100,829

 

Advertisement

 

 

112,478

 

 

Advertisement

374,874

 

 

 

333,277

Advertisement

 

Non-interest expense

 

 

 

Advertisement

 

 

 

 

 

Advertisement

 

 

 

 

Salaries and employee benefits

Advertisement

 

211,261

 

 

 

Advertisement

198,541

 

 

 

195,173

Advertisement

 

 

193,971

 

 

Advertisement

 

192,338

 

 

604,975

Advertisement

 

 

 

554,042

 

Advertisement

Software and equipment

 

31,574

 

 

Advertisement

 

29,231

 

 

 

Advertisement

27,731

 

 

27,779

 

Advertisement

 

 

25,951

 

 

Advertisement

88,536

 

 

 

76,853

Advertisement

 

Operating lease equipment

 

10,518

 

Advertisement

 

 

10,834

 

 

Advertisement

 

10,683

 

 

10,694

Advertisement

 

 

 

12,020

 

Advertisement

 

32,035

 

 

 

Advertisement

31,669

 

Occupancy, net

 

19,945

Advertisement

 

 

 

19,585

 

Advertisement

 

 

19,086

 

 

Advertisement

18,102

 

 

 

21,304

Advertisement

 

 

58,616

 

 

Advertisement

 

58,966

 

Data processing

 

Advertisement

9,984

 

 

 

9,503

Advertisement

 

 

 

9,292

 

Advertisement

 

8,892

 

 

 

Advertisement

10,773

 

 

28,779

 

Advertisement

 

 

29,908

 

Advertising and marketing

Advertisement

 

18,239

 

 

 

Advertisement

17,436

 

 

 

13,040

Advertisement

 

 

17,166

 

 

Advertisement

 

18,169

 

 

48,715

Advertisement

 

 

 

47,909

 

Advertisement

Professional fees

 

9,783

 

 

Advertisement

 

9,967

 

 

 

Advertisement

9,553

 

 

8,768

 

Advertisement

 

 

8,887

 

 

Advertisement

29,303

 

 

 

25,990

Advertisement

 

Amortization of other acquisition-related intangible assets

 

4,042

 

Advertisement

 

 

1,122

 

 

Advertisement

 

1,158

 

 

1,356

Advertisement

 

 

 

1,408

 

Advertisement

 

6,322

 

 

 

Advertisement

4,142

 

FDIC insurance

 

10,512

Advertisement

 

 

 

10,429

 

Advertisement

 

 

14,537

 

 

Advertisement

43,677

 

 

 

9,748

Advertisement

 

 

35,478

 

 

Advertisement

 

27,425

 

OREO expenses, net

 

Advertisement

(938

)

 

 

(259

Advertisement

)

 

 

392

 

Advertisement

 

(1,559

)

 

 

Advertisement

120

 

 

(805

)

Advertisement

 

 

31

 

Other

Advertisement

 

35,767

 

 

 

Advertisement

33,964

 

 

 

32,500

Advertisement

 

 

33,806

 

 

Advertisement

 

29,337

 

 

102,231

Advertisement

 

 

 

92,912

 

Advertisement

Total non-interest expense

 

360,687

 

 

Advertisement

 

340,353

 

 

 

Advertisement

333,145

 

 

362,652

 

Advertisement

 

 

330,055

 

 

Advertisement

1,034,185

 

 

 

949,847

Advertisement

 

Income before taxes

 

232,709

 

Advertisement

 

 

211,343

 

 

Advertisement

 

249,956

 

 

165,243

Advertisement

 

 

 

224,858

 

Advertisement

 

694,008

 

 

 

Advertisement

679,838

 

Income tax expense

 

62,708

Advertisement

 

 

 

58,955

 

Advertisement

 

 

62,662

 

 

Advertisement

41,763

 

 

 

60,660

Advertisement

 

 

184,325

 

 

Advertisement

 

180,692

 

Net income

$

Advertisement

170,001

 

 

$

152,388

Advertisement

 

 

$

187,294

 

Advertisement

$

123,480

 

 

$

Advertisement

164,198

 

$

509,683

 

Advertisement

 

$

499,146

 

Preferred stock dividends

Advertisement

 

6,991

 

 

 

Advertisement

6,991

 

 

 

6,991

Advertisement

 

 

6,991

 

 

Advertisement

 

6,991

 

 

20,973

Advertisement

 

 

 

20,973

 

Advertisement

Net income applicable to common shares

$

163,010

 

 

Advertisement

$

145,397

 

 

$

Advertisement

180,303

 

$

116,489

 

Advertisement

 

$

157,207

 

$

Advertisement

488,710

 

 

$

478,173

Advertisement

 

Net income per common share – Basic

$

2.51

 

Advertisement

 

$

2.35

 

 

Advertisement

$

2.93

 

$

1.90

Advertisement

 

 

$

2.57

 

Advertisement

$

7.79

 

 

$

Advertisement

7.82

 

Net income per common share – Diluted

$

2.47

Advertisement

 

 

$

2.32

 

Advertisement

 

$

2.89

 

$

Advertisement

1.87

 

 

$

2.53

Advertisement

 

$

7.67

 

 

Advertisement

$

7.71

 

Cash dividends declared per common share

$

Advertisement

0.45

 

 

$

0.45

Advertisement

 

 

$

0.45

 

Advertisement

$

0.40

 

 

$

Advertisement

0.40

 

$

1.35

 

Advertisement

 

$

1.20

 

Weighted average common shares outstanding

Advertisement

 

64,888

 

 

 

Advertisement

61,839

 

 

 

61,481

Advertisement

 

 

61,236

 

 

Advertisement

 

61,213

 

 

62,743

Advertisement

 

 

 

61,119

 

Advertisement

Dilutive potential common shares

 

1,053

 

 

Advertisement

 

926

 

 

 

Advertisement

928

 

 

1,166

 

Advertisement

 

 

964

 

 

Advertisement

934

 

 

 

888

Advertisement

 

Average common shares and dilutive common shares

 

65,941

 

Advertisement

 

 

62,765

 

 

Advertisement

 

62,409

 

 

62,402

Advertisement

 

 

 

62,177

 

Advertisement

 

63,677

 

 

 

Advertisement

62,007

 

TABLE 1: LOAN PORTFOLIO MIX AND GROWTH RATES

 

 

Advertisement

 

 

 

 

 

Advertisement

 

 

 

% Growth From

(Dollars in thousands)

Advertisement

Sep 30,
2024

 

Jun 30,
2024

 

Mar 31,
2024

Advertisement

 

Dec 31,
2023

 

Sep 30,
2023

Dec 31,
2023(1)

Advertisement

 

Sep 30,
2023

Balance:

 

 

Advertisement

 

 

 

 

 

Advertisement

 

 

 

 

 

Advertisement

Mortgage loans held-for-sale, excluding early buy-out exercised loans guaranteed by U.S. government agencies

$

314,693

 

$

Advertisement

281,103

 

$

193,064

 

Advertisement

$

155,529

 

$

190,511

Advertisement

NM

 

65

%

Mortgage loans held-for-sale, early buy-out exercised loans guaranteed by U.S. government agencies

Advertisement

 

146,374

 

 

130,748

Advertisement

 

 

146,820

 

 

Advertisement

137,193

 

 

114,297

9

Advertisement

 

 

28

 

Total mortgage loans held-for-sale

Advertisement

$

461,067

 

$

411,851

Advertisement

 

$

339,884

 

$

Advertisement

292,722

 

$

304,808

77

Advertisement

%

 

51

%

 

Advertisement

 

 

 

 

 

Advertisement

 

 

 

 

 

Advertisement

 

 

Core loans:

 

 

Advertisement

 

 

 

 

 

Advertisement

 

 

 

 

 

Advertisement

Commercial

 

 

 

 

Advertisement

 

 

 

 

 

Advertisement

 

 

 

Commercial and industrial

$

Advertisement

6,768,382

 

$

6,226,336

 

Advertisement

$

6,105,968

 

$

5,804,629

Advertisement

 

$

5,894,732

22

%

Advertisement

 

15

%

Asset-based lending

 

Advertisement

1,709,685

 

 

1,465,867

 

Advertisement

 

1,355,255

 

 

1,433,250

Advertisement

 

 

1,396,591

26

 

Advertisement

 

22

 

Municipal

 

Advertisement

827,125

 

 

747,357

 

Advertisement

 

721,526

 

 

677,143

Advertisement

 

 

676,915

30

 

Advertisement

 

22

 

Leases

 

Advertisement

2,443,721

 

 

2,439,128

 

Advertisement

 

2,344,295

 

 

2,208,368

Advertisement

 

 

2,109,628

14

 

Advertisement

 

16

 

PPP loans

 

Advertisement

6,301

 

 

9,954

 

Advertisement

 

11,036

 

 

11,533

Advertisement

 

 

13,744

(61

)

Advertisement

 

(54

)

Commercial real estate

 

Advertisement

 

 

 

 

 

Advertisement

 

 

 

 

 

Advertisement

 

Residential construction

 

73,088

 

Advertisement

 

55,019

 

 

57,558

Advertisement

 

 

58,642

 

 

Advertisement

51,550

33

 

 

42

Advertisement

 

Commercial construction

 

1,984,240

 

Advertisement

 

1,866,701

 

 

1,748,607

Advertisement

 

 

1,729,937

 

 

Advertisement

1,547,322

20

 

 

28

Advertisement

 

Land

 

346,362

 

Advertisement

 

338,831

 

 

344,149

Advertisement

 

 

295,462

 

 

Advertisement

294,901

23

 

 

17

Advertisement

 

Office

 

1,675,286

 

Advertisement

 

1,585,312

 

 

1,566,748

Advertisement

 

 

1,455,417

 

 

Advertisement

1,422,748

20

 

 

18

Advertisement

 

Industrial

 

2,527,932

 

Advertisement

 

2,307,455

 

 

2,190,200

Advertisement

 

 

2,135,876

 

 

Advertisement

2,057,957

25

 

 

23

Advertisement

 

Retail

 

1,404,586

 

Advertisement

 

1,365,753

 

 

1,366,415

Advertisement

 

 

1,337,517

 

 

Advertisement

1,341,451

7

 

 

5

Advertisement

 

Multi-family

 

3,193,339

 

Advertisement

 

2,988,940

 

 

2,922,432

Advertisement

 

 

2,815,911

 

 

Advertisement

2,710,829

18

 

 

18

Advertisement

 

Mixed use and other

 

1,588,584

 

Advertisement

 

1,439,186

 

 

1,437,328

Advertisement

 

 

1,515,402

 

 

Advertisement

1,519,422

6

 

 

5

Advertisement

 

Home equity

 

427,043

 

Advertisement

 

356,313

 

 

340,349

Advertisement

 

 

343,976

 

 

Advertisement

343,258

32

 

 

24

Advertisement

 

Residential real estate

 

 

 

Advertisement

 

 

 

 

 

Advertisement

 

 

 

 

Residential real estate loans for investment

Advertisement

 

3,252,649

 

 

2,933,157

Advertisement

 

 

2,746,916

 

 

Advertisement

2,619,083

 

 

2,538,630

32

Advertisement

 

 

28

 

Residential mortgage loans, early buy-out eligible loans guaranteed by U.S. government agencies

Advertisement

 

92,355

 

 

88,503

Advertisement

 

 

90,911

 

 

Advertisement

92,780

 

 

97,911

(1

Advertisement

)

 

(6

)

Residential mortgage loans, early buy-out exercised loans guaranteed by U.S. government agencies

Advertisement

 

43,034

 

 

45,675

Advertisement

 

 

52,439

 

 

Advertisement

57,803

 

 

71,062

(34

Advertisement

)

 

(39

)

Total core loans

Advertisement

$

28,363,712

 

$

26,259,487

Advertisement

 

$

25,402,132

 

$

Advertisement

24,592,729

 

$

24,088,651

20

Advertisement

%

 

18

%

 

Advertisement

 

 

 

 

 

Advertisement

 

 

 

 

 

Advertisement

 

 

Niche loans:

 

 

Advertisement

 

 

 

 

 

Advertisement

 

 

 

 

 

Advertisement

Commercial

 

 

 

 

Advertisement

 

 

 

 

 

Advertisement

 

 

 

Franchise

$

Advertisement

1,191,686

 

$

1,150,460

 

Advertisement

$

1,122,302

 

$

1,092,532

Advertisement

 

$

1,074,162

12

%

Advertisement

 

11

%

Mortgage warehouse lines of credit

 

Advertisement

750,462

 

 

593,519

 

Advertisement

 

403,245

 

 

230,211

Advertisement

 

 

245,450

302

 

Advertisement

 

206

 

Community Advantage – homeowners association

 

Advertisement

501,645

 

 

491,722

 

Advertisement

 

475,832

 

 

452,734

Advertisement

 

 

424,054

14

 

Advertisement

 

18

 

Insurance agency lending

 

Advertisement

1,048,686

 

 

1,030,119

 

Advertisement

 

964,022

 

 

921,653

Advertisement

 

 

890,197

18

 

Advertisement

 

18

 

Premium Finance receivables

 

Advertisement

 

 

 

 

 

Advertisement

 

 

 

 

 

Advertisement

 

U.S. property & casualty insurance

 

6,253,271

 

Advertisement

 

6,142,654

 

 

6,113,993

Advertisement

 

 

5,983,103

 

 

Advertisement

5,815,346

6

 

 

8

Advertisement

 

Canada property & casualty insurance

 

878,410

 

Advertisement

 

958,099

 

 

826,026

Advertisement

 

 

920,426

 

 

Advertisement

907,401

(6

)

 

(3

Advertisement

)

Life insurance

 

7,996,899

 

Advertisement

 

7,962,115

 

 

7,872,033

Advertisement

 

 

7,877,943

 

 

Advertisement

7,931,808

2

 

 

1

Advertisement

 

Consumer and other

 

82,676

 

Advertisement

 

87,356

 

 

51,121

Advertisement

 

 

60,500

 

 

Advertisement

68,963

49

 

 

20

Advertisement

 

Total niche loans

$

18,703,735

 

Advertisement

$

18,416,044

 

$

17,828,574

Advertisement

 

$

17,539,102

 

$

Advertisement

17,357,381

9

%

 

8

Advertisement

%

 

 

 

 

Advertisement

 

 

 

 

 

Advertisement

 

 

 

 

Total loans, net of unearned income

Advertisement

$

47,067,447

 

$

44,675,531

Advertisement

 

$

43,230,706

 

$

Advertisement

42,131,831

 

$

41,446,032

16

Advertisement

%

 

14

%

(1)   Annualized.

Advertisement

TABLE 2: DEPOSIT PORTFOLIO MIX AND GROWTH RATES

 

 

 

 

Advertisement

 

 

 

 

 

Advertisement

 

% Growth From

(Dollars in thousands)

Sep 30,
2024

 

Advertisement

Jun 30,
2024

 

Mar 31,
2024

 

Dec 31,
2023

Advertisement

 

Sep 30,
2023

Jun 30,
2024(1)

 

Sep 30,
2023

Advertisement

Balance:

 

 

 

 

Advertisement

 

 

 

 

 

Advertisement

 

 

 

Non-interest-bearing

$

Advertisement

10,739,132

 

 

$

10,031,440

Advertisement

 

 

$

9,908,183

 

Advertisement

 

$

10,420,401

 

 

Advertisement

$

10,347,006

 

28

%

Advertisement

 

4

%

NOW and interest-bearing demand deposits

 

Advertisement

5,466,932

 

 

 

5,053,909

Advertisement

 

 

 

5,720,947

 

Advertisement

 

 

5,797,649

 

 

Advertisement

 

6,006,114

 

33

 

Advertisement

 

(9

)

Wealth management deposits(2)

 

Advertisement

1,303,354

 

 

 

1,490,711

Advertisement

 

 

 

1,347,817

 

Advertisement

 

 

1,614,499

 

 

Advertisement

 

1,788,099

 

(50

)

Advertisement

 

(27

)

Money market

 

Advertisement

17,713,726

 

 

 

16,320,017

Advertisement

 

 

 

15,617,717

 

Advertisement

 

 

15,149,215

 

 

Advertisement

 

14,478,504

 

34

 

Advertisement

 

22

 

Savings

 

Advertisement

6,183,249

 

 

 

5,882,179

Advertisement

 

 

 

5,959,774

 

Advertisement

 

 

5,790,334

 

 

Advertisement

 

5,584,294

 

20

 

Advertisement

 

11

 

Time certificates of deposit

 

Advertisement

9,998,573

 

 

 

9,270,770

Advertisement

 

 

 

7,894,420

 

Advertisement

 

 

6,625,072

 

 

Advertisement

 

6,788,669

 

31

 

Advertisement

 

47

 

Total deposits

$

Advertisement

51,404,966

 

 

$

48,049,026

Advertisement

 

 

$

46,448,858

 

Advertisement

 

$

45,397,170

 

 

Advertisement

$

44,992,686

 

28

%

Advertisement

 

14

%

Mix:

 

Advertisement

 

 

 

 

 

Advertisement

 

 

 

 

 

Advertisement

 

Non-interest-bearing

 

21

%

Advertisement

 

 

21

%

 

Advertisement

 

21

%

 

 

Advertisement

23

%

 

 

23

Advertisement

%

 

 

 

NOW and interest-bearing demand deposits

Advertisement

 

11

 

 

 

Advertisement

11

 

 

 

12

Advertisement

 

 

 

13

 

Advertisement

 

 

13

 

 

Advertisement

 

 

Wealth management deposits(2)

 

3

Advertisement

 

 

 

3

 

Advertisement

 

 

3

 

 

Advertisement

 

4

 

 

 

Advertisement

4

 

 

 

 

Advertisement

Money market

 

34

 

 

Advertisement

 

34

 

 

 

Advertisement

34

 

 

 

33

Advertisement

 

 

 

32

 

Advertisement

 

 

 

Savings

 

Advertisement

12

 

 

 

12

Advertisement

 

 

 

13

 

Advertisement

 

 

13

 

 

Advertisement

 

13

 

 

 

Advertisement

 

Time certificates of deposit

 

19

 

Advertisement

 

 

19

 

 

Advertisement

 

17

 

 

 

Advertisement

14

 

 

 

15

Advertisement

 

 

 

 

Total deposits

Advertisement

 

100

%

 

 

Advertisement

100

%

 

 

100

Advertisement

%

 

 

100

%

Advertisement

 

 

100

%

 

Advertisement

 

 

(1)   Annualized.
(2)   Represents deposit balances of the Company’s subsidiary banks from brokerage customers of Wintrust Investments, Chicago Deferred Exchange Company, LLC (“CDEC”), and trust and asset management customers of the Company.

TABLE 3: TIME CERTIFICATES OF DEPOSIT MATURITY/RE-PRICING ANALYSIS
As of September 30, 2024

(Dollars in thousands)

Advertisement

 

Total Time
Certificates of
Deposit

 

Weighted-Average
Rate of Maturing
Time Certificates
of Deposit

1-3 months

Advertisement

 

$

3,125,473

 

4.71

Advertisement

%

4-6 months

 

 

3,238,465

Advertisement

 

4.55

 

7-9 months

 

Advertisement

 

2,624,913

 

4.39

 

Advertisement

10-12 months

 

 

619,340

 

Advertisement

4.05

 

13-18 months

 

 

Advertisement

239,018

 

3.48

 

19-24 months

Advertisement

 

 

89,361

 

2.82

Advertisement

 

24+ months

 

 

62,003

Advertisement

 

2.29

 

Total

 

Advertisement

$

9,998,573

 

4.47

%

Advertisement

TABLE 4: QUARTERLY AVERAGE BALANCES

 

 

Average Balance for three months ended,

 

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Sep 30,

 

Jun 30,

 

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Mar 31,

 

Dec 31,

 

Sep 30,

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(In thousands)

 

2024

 

2024

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2024

 

2023

 

Advertisement

2023

Interest-bearing deposits with banks, securities purchased under resale agreements and cash equivalents(1)

 

$

2,413,728

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$

1,485,481

 

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$

1,254,332

 

 

Advertisement

$

1,682,176

 

 

$

Advertisement

2,053,568

 

Investment securities(2)

 

 

Advertisement

8,276,576

 

 

 

8,203,764

Advertisement

 

 

 

8,349,796

 

Advertisement

 

 

7,971,068

 

 

Advertisement

 

7,706,285

 

FHLB and FRB stock

 

Advertisement

 

263,707

 

 

 

Advertisement

253,614

 

 

 

230,648

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204,593

 

Advertisement

 

 

201,252

 

Liquidity management assets(3)

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$

10,954,011

 

 

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$

9,942,859

 

 

$

Advertisement

9,834,776

 

 

$

9,857,837

Advertisement

 

 

$

9,961,105

 

Advertisement

Other earning assets(3)(4)

 

 

17,542

 

Advertisement

 

 

15,257

 

 

Advertisement

 

15,081

 

 

 

Advertisement

14,821

 

 

 

17,879

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Mortgage loans held-for-sale

 

 

376,251

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347,236

 

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290,275

 

 

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279,569

 

 

 

Advertisement

319,099

 

Loans, net of unearned income(3)(5)

 

 

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45,920,586

 

 

 

43,819,354

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42,129,893

 

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41,361,952

 

 

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40,707,042

 

Total earning assets(3)

 

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$

57,268,390

 

 

$

Advertisement

54,124,706

 

 

$

52,270,025

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$

51,514,179

 

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$

51,005,125

 

Allowance for loan and investment security losses

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(383,736

)

 

Advertisement

 

(360,504

)

 

 

Advertisement

(361,734

)

 

 

(329,441

Advertisement

)

 

 

(319,491

)

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Cash and due from banks

 

 

467,333

 

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434,916

 

 

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450,267

 

 

 

Advertisement

443,989

 

 

 

459,819

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Other assets

 

 

3,563,296

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3,294,066

 

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3,244,137

 

 

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3,388,348

 

 

 

Advertisement

3,236,528

 

Total assets

 

$

Advertisement

60,915,283

 

 

$

57,493,184

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$

55,602,695

 

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$

55,017,075

 

 

Advertisement

$

54,381,981

 

 

 

Advertisement

 

 

 

 

 

Advertisement

 

 

 

 

NOW and interest-bearing demand deposits

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$

5,174,673

 

 

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$

4,985,306

 

 

$

Advertisement

5,680,265

 

 

$

5,868,976

Advertisement

 

 

$

5,815,155

 

Advertisement

Wealth management deposits

 

 

1,362,747

 

Advertisement

 

 

1,531,865

 

 

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1,510,203

 

 

 

Advertisement

1,704,099

 

 

 

1,512,765

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Money market accounts

 

 

16,436,111

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15,272,126

 

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14,474,492

 

 

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14,212,320

 

 

 

Advertisement

14,155,446

 

Savings accounts

 

 

Advertisement

6,096,746

 

 

 

5,878,844

Advertisement

 

 

 

5,792,118

 

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5,676,155

 

 

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5,472,535

 

Time deposits

 

Advertisement

 

9,598,109

 

 

 

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8,546,172

 

 

 

7,148,456

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6,645,980

 

Advertisement

 

 

6,495,906

 

Interest-bearing deposits

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$

38,668,386

 

 

Advertisement

$

36,214,313

 

 

$

Advertisement

34,605,534

 

 

$

34,107,530

Advertisement

 

 

$

33,451,807

 

Advertisement

Federal Home Loan Bank advances

 

 

3,178,973

 

Advertisement

 

 

3,096,920

 

 

Advertisement

 

2,728,849

 

 

 

Advertisement

2,326,073

 

 

 

2,241,292

Advertisement

 

Other borrowings

 

 

622,792

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587,262

 

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627,711

 

 

Advertisement

 

633,673

 

 

 

Advertisement

657,454

 

Subordinated notes

 

 

Advertisement

298,135

 

 

 

410,331

Advertisement

 

 

 

437,893

 

Advertisement

 

 

437,785

 

 

Advertisement

 

437,658

 

Junior subordinated debentures

 

Advertisement

 

253,566

 

 

 

Advertisement

253,566

 

 

 

253,566

Advertisement

 

 

 

253,566

 

Advertisement

 

 

253,566

 

Total interest-bearing liabilities

Advertisement

 

$

43,021,852

 

 

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$

40,562,392

 

 

$

Advertisement

38,653,553

 

 

$

37,758,627

Advertisement

 

 

$

37,041,777

 

Advertisement

Non-interest-bearing deposits

 

 

10,271,613

 

Advertisement

 

 

9,879,134

 

 

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9,972,646

 

 

 

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10,406,585

 

 

 

10,612,009

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Other liabilities

 

 

1,631,389

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1,601,485

 

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1,536,039

 

 

Advertisement

 

1,785,667

 

 

 

Advertisement

1,644,312

 

Equity

 

 

Advertisement

5,990,429

 

 

 

5,450,173

Advertisement

 

 

 

5,440,457

 

Advertisement

 

 

5,066,196

 

 

Advertisement

 

5,083,883

 

Total liabilities and shareholders’ equity

 

Advertisement

$

60,915,283

 

 

$

Advertisement

57,493,184

 

 

$

55,602,695

Advertisement

 

 

$

55,017,075

 

Advertisement

 

$

54,381,981

 

 

Advertisement

 

 

 

 

 

Advertisement

 

 

 

 

 

Advertisement

Net free funds/contribution(6)

 

$

14,246,538

 

Advertisement

 

$

13,562,314

 

 

Advertisement

$

13,616,472

 

 

$

Advertisement

13,755,552

 

 

$

13,963,348

Advertisement

 

(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 18: 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

 

 

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Net Interest Income for three months ended,

 

 

Sep 30,

 

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Jun 30,

 

Mar 31,

 

Dec 31,

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Sep 30,

(In thousands)

 

2024

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2024

 

2024

 

Advertisement

2023

 

2023

Interest income:

 

Advertisement

 

 

 

 

 

Advertisement

 

 

 

 

Interest-bearing deposits with banks, securities purchased under resale agreements and cash equivalents

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$

32,885

 

 

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$

19,748

 

 

$

Advertisement

16,677

 

 

$

22,340

Advertisement

 

 

$

28,022

 

Advertisement

Investment securities

 

 

70,260

 

Advertisement

 

 

70,346

 

 

Advertisement

 

70,228

 

 

 

Advertisement

68,812

 

 

 

59,737

Advertisement

 

FHLB and FRB stock

 

 

5,451

Advertisement

 

 

 

4,974

 

Advertisement

 

 

4,478

 

 

Advertisement

 

3,792

 

 

 

Advertisement

3,896

 

Liquidity management assets(1)

 

$

Advertisement

108,596

 

 

$

95,068

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$

91,383

 

Advertisement

 

$

94,944

 

 

Advertisement

$

91,655

 

Other earning assets(1)

 

Advertisement

 

282

 

 

 

Advertisement

235

 

 

 

198

Advertisement

 

 

 

222

 

Advertisement

 

 

291

 

Mortgage loans held-for-sale

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6,233

 

 

Advertisement

 

5,434

 

 

 

Advertisement

4,146

 

 

 

4,318

Advertisement

 

 

 

4,767

 

Advertisement

Loans, net of unearned income(1)

 

 

796,637

 

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752,117

 

 

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712,587

 

 

 

Advertisement

697,093

 

 

 

668,183

Advertisement

 

Total interest income

 

$

911,748

Advertisement

 

 

$

852,854

 

Advertisement

 

$

808,314

 

 

Advertisement

$

796,577

 

 

$

Advertisement

764,896

 

 

 

 

Advertisement

 

 

 

 

 

Advertisement

 

 

 

Interest expense:

 

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Advertisement

 

 

 

 

NOW and interest-bearing demand deposits

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$

30,971

 

 

Advertisement

$

32,719

 

 

$

Advertisement

34,896

 

 

$

38,124

Advertisement

 

 

$

36,001

 

Advertisement

Wealth management deposits

 

 

10,158

 

Advertisement

 

 

10,294

 

 

Advertisement

 

10,461

 

 

 

Advertisement

12,076

 

 

 

9,350

Advertisement

 

Money market accounts

 

 

167,382

Advertisement

 

 

 

155,100

 

Advertisement

 

 

137,984

 

 

Advertisement

 

130,252

 

 

 

Advertisement

124,742

 

Savings accounts

 

 

Advertisement

42,892

 

 

 

41,063

Advertisement

 

 

 

39,071

 

Advertisement

 

 

36,463

 

 

Advertisement

 

31,784

 

Time deposits

 

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110,616

 

 

 

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96,527

 

 

 

77,120

Advertisement

 

 

 

68,475

 

Advertisement

 

 

60,906

 

Interest-bearing deposits

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$

362,019

 

 

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$

335,703

 

 

$

Advertisement

299,532

 

 

$

285,390

Advertisement

 

 

$

262,783

 

Advertisement

Federal Home Loan Bank advances

 

 

26,254

 

Advertisement

 

 

24,797

 

 

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22,048

 

 

 

Advertisement

18,316

 

 

 

17,436

Advertisement

 

Other borrowings

 

 

9,013

Advertisement

 

 

 

8,700

 

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9,248

 

 

Advertisement

 

9,557

 

 

 

Advertisement

9,384

 

Subordinated notes

 

 

Advertisement

3,712

 

 

 

5,185

Advertisement

 

 

 

5,487

 

Advertisement

 

 

5,522

 

 

Advertisement

 

5,491

 

Junior subordinated debentures

 

Advertisement

 

5,023

 

 

 

Advertisement

4,984

 

 

 

5,004

Advertisement

 

 

 

5,089

 

Advertisement

 

 

4,948

 

Total interest expense

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$

406,021

 

 

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$

379,369

 

 

$

Advertisement

341,319

 

 

$

323,874

Advertisement

 

 

$

300,042

 

Advertisement

 

 

 

 

 

Advertisement

 

 

 

 

 

Advertisement

 

Less: Fully taxable-equivalent adjustment

 

 

(3,144

Advertisement

)

 

 

(2,875

)

Advertisement

 

 

(2,801

)

 

Advertisement

 

(2,729

)

 

 

Advertisement

(2,496

)

Net interest income (GAAP)(2)

 

 

Advertisement

502,583

 

 

 

470,610

Advertisement

 

 

 

464,194

 

Advertisement

 

 

469,974

 

 

Advertisement

 

462,358

 

Fully taxable-equivalent adjustment

 

Advertisement

 

3,144

 

 

 

Advertisement

2,875

 

 

 

2,801

Advertisement

 

 

 

2,729

 

Advertisement

 

 

2,496

 

Net interest income, fully taxable-equivalent (non-GAAP)(2)

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$

505,727

 

 

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$

473,485

 

 

$

Advertisement

466,995

 

 

$

472,703

Advertisement

 

 

$

464,854

 

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(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 18: 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,

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Sep 30,
2024

 

Jun 30,
2024

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Mar 31,
2024

 

Dec 31,
2023

 

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Sep 30,
2023

Yield earned on:

 

 

 

Advertisement

 

 

 

 

 

Advertisement

 

 

Interest-bearing deposits with banks, securities purchased under resale agreements and cash equivalents

 

5.42

Advertisement

%

 

5.35

%

 

Advertisement

5.35

%

 

5.27

%

Advertisement

 

5.41

%

Investment securities

 

Advertisement

3.38

 

 

3.45

 

Advertisement

 

3.38

 

 

3.42

Advertisement

 

 

3.08

 

FHLB and FRB stock

Advertisement

 

8.22

 

 

7.89

Advertisement

 

 

7.81

 

 

Advertisement

7.35

 

 

7.68

 

Advertisement

Liquidity management assets

 

3.94

%

 

Advertisement

3.85

%

 

3.74

%

Advertisement

 

3.82

%

 

3.65

Advertisement

%

Other earning assets

 

6.38

 

Advertisement

 

6.23

 

 

5.25

Advertisement

 

 

5.92

 

 

Advertisement

6.47

 

Mortgage loans held-for-sale

 

6.59

Advertisement

 

 

6.29

 

 

Advertisement

5.74

 

 

6.13

 

Advertisement

 

5.93

 

Loans, net of unearned income

 

Advertisement

6.90

 

 

6.90

 

Advertisement

 

6.80

 

 

6.69

Advertisement

 

 

6.51

 

Total earning assets

Advertisement

 

6.33

%

 

6.34

Advertisement

%

 

6.22

%

 

Advertisement

6.13

%

 

5.95

%

Advertisement

 

 

 

 

 

Advertisement

 

 

 

 

 

Advertisement

 

Rate paid on:

 

 

 

Advertisement

 

 

 

 

 

Advertisement

 

 

NOW and interest-bearing demand deposits

 

2.38

Advertisement

%

 

2.64

%

 

Advertisement

2.47

%

 

2.58

%

Advertisement

 

2.46

%

Wealth management deposits

 

Advertisement

2.97

 

 

2.70

 

Advertisement

 

2.79

 

 

2.81

Advertisement

 

 

2.45

 

Money market accounts

Advertisement

 

4.05

 

 

4.08

Advertisement

 

 

3.83

 

 

Advertisement

3.64

 

 

3.50

 

Advertisement

Savings accounts

 

2.80

 

 

Advertisement

2.81

 

 

2.71

 

Advertisement

 

2.55

 

 

2.30

Advertisement

 

Time deposits

 

4.58

 

Advertisement

 

4.54

 

 

4.34

Advertisement

 

 

4.09

 

 

Advertisement

3.72

 

Interest-bearing deposits

 

3.72

Advertisement

%

 

3.73

%

 

Advertisement

3.48

%

 

3.32

%

Advertisement

 

3.12

%

Federal Home Loan Bank advances

 

Advertisement

3.29

 

 

3.22

 

Advertisement

 

3.25

 

 

3.12

Advertisement

 

 

3.09

 

Other borrowings

Advertisement

 

5.76

 

 

5.96

Advertisement

 

 

5.92

 

 

Advertisement

5.98

 

 

5.66

 

Advertisement

Subordinated notes

 

4.95

 

 

Advertisement

5.08

 

 

5.04

 

Advertisement

 

5.00

 

 

4.98

Advertisement

 

Junior subordinated debentures

 

7.88

 

Advertisement

 

7.91

 

 

7.94

Advertisement

 

 

7.96

 

 

Advertisement

7.74

 

Total interest-bearing liabilities

 

3.75

Advertisement

%

 

3.76

%

 

Advertisement

3.55

%

 

3.40

%

Advertisement

 

3.21

%

 

 

Advertisement

 

 

 

 

 

Advertisement

 

 

 

 

Interest rate spread(1)(2)

Advertisement

 

2.58

%

 

2.58

Advertisement

%

 

2.67

%

 

Advertisement

2.73

%

 

2.74

%

Advertisement

Less: Fully taxable-equivalent adjustment

 

(0.02

)

 

Advertisement

(0.02

)

 

(0.02

)

Advertisement

 

(0.02

)

 

(0.02

Advertisement

)

Net free funds/contribution(3)

 

0.93

 

Advertisement

 

0.94

 

 

0.92

Advertisement

 

 

0.91

 

 

Advertisement

0.88

 

Net interest margin (GAAP)(2)

 

3.49

Advertisement

%

 

3.50

%

 

Advertisement

3.57

%

 

3.62

%

Advertisement

 

3.60

%

Fully taxable-equivalent adjustment

 

Advertisement

0.02

 

 

0.02

 

Advertisement

 

0.02

 

 

0.02

Advertisement

 

 

0.02

 

Net interest margin, fully taxable-equivalent (non-GAAP)(2)

Advertisement

 

3.51

%

 

3.52

Advertisement

%

 

3.59

%

 

Advertisement

3.64

%

 

3.62

%

Advertisement

(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 18: 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
fornine months ended,

Interest
fornine months ended,

Advertisement

Yield/Rate
fornine months ended,

(Dollars in thousands)

Sep 30,
2024

 

Sep 30,
2023

Advertisement

Sep 30,
2024

 

Sep 30,
2023

Sep 30,
2024

 

Advertisement

Sep 30,
2023

Interest-bearing deposits with banks, securities purchased under resale agreements and cash equivalents(1)

$

1,720,387

 

Advertisement

 

$

1,584,120

 

$

Advertisement

69,310

 

 

$

58,443

Advertisement

 

5.38

%

 

4.93

Advertisement

%

Investment securities(2)

 

8,276,711

 

Advertisement

 

 

7,637,612

 

 

Advertisement

210,834

 

 

 

172,025

Advertisement

 

3.40

 

 

3.01

Advertisement

 

FHLB and FRB stock

 

249,375

 

Advertisement

 

 

219,442

 

 

Advertisement

14,903

 

 

 

11,120

Advertisement

 

7.98

 

 

6.77

Advertisement

 

Liquidity management assets(3)(4)

$

10,246,473

 

Advertisement

 

$

9,441,174

 

$

Advertisement

295,047

 

 

$

241,588

Advertisement

 

3.85

%

 

3.42

Advertisement

%

Other earning assets(3)(4)(5)

 

15,966

 

Advertisement

 

 

17,906

 

 

Advertisement

715

 

 

 

876

Advertisement

 

5.98

 

 

6.54

Advertisement

 

Mortgage loans held-for-sale

 

338,061

 

Advertisement

 

 

299,426

 

 

Advertisement

15,813

 

 

 

12,473

Advertisement

 

6.25

 

 

5.57

Advertisement

 

Loans, net of unearned income(3)(4)(6)

 

43,963,779

 

Advertisement

 

 

39,974,840

 

 

Advertisement

2,261,341

 

 

 

1,851,686

Advertisement

 

6.87

 

 

6.19

Advertisement

 

Total earning assets(4)

$

54,564,279

 

Advertisement

 

$

49,733,346

 

$

Advertisement

2,572,916

 

 

$

2,106,623

Advertisement

 

6.30

%

 

5.66

Advertisement

%

Allowance for loan and investment security losses

 

(368,713

)

Advertisement

 

 

(301,742

)

 

Advertisement

 

 

 

 

 

Advertisement

Cash and due from banks

 

450,899

 

 

Advertisement

 

476,490

 

 

 

Advertisement

 

 

 

 

Other assets

Advertisement

 

3,367,882

 

 

 

Advertisement

3,120,105

 

 

 

 

Advertisement

 

 

 

Total assets

$

Advertisement

58,014,347

 

 

$

53,028,199

Advertisement

 

 

 

 

 

Advertisement

 

 

 

 

 

Advertisement

 

 

 

 

 

Advertisement

 

 

NOW and interest-bearing demand deposits

$

5,279,697

Advertisement

 

 

$

5,544,488

 

Advertisement

$

98,586

 

 

$

Advertisement

83,949

 

2.49

%

 

Advertisement

2.02

%

Wealth management deposits

 

1,467,886

Advertisement

 

 

 

1,739,427

 

Advertisement

 

30,913

 

 

 

Advertisement

30,705

 

2.81

 

 

Advertisement

2.36

 

Money market accounts

 

15,398,045

Advertisement

 

 

 

13,480,887

 

Advertisement

 

460,466

 

 

 

Advertisement

299,649

 

3.99

 

 

Advertisement

2.97

 

Savings accounts

 

5,923,205

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5,172,174

 

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123,026

 

 

 

Advertisement

73,203

 

2.77

 

 

Advertisement

1.89

 

Time deposits

 

8,435,172

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5,718,850

 

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284,263

 

 

 

Advertisement

133,574

 

4.50

 

 

Advertisement

3.12

 

Interest-bearing deposits

$

36,504,005

Advertisement

 

 

$

31,655,826

 

Advertisement

$

997,254

 

 

$

Advertisement

621,080

 

3.65

%

 

Advertisement

2.62

%

Federal Home Loan Bank advances

 

3,002,228

Advertisement

 

 

 

2,313,571

 

Advertisement

 

73,099

 

 

 

Advertisement

53,970

 

3.25

 

 

Advertisement

3.12

 

Other borrowings

 

612,627

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628,915

 

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26,961

 

 

 

Advertisement

25,723

 

5.88

 

 

Advertisement

5.47

 

Subordinated notes

 

381,813

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437,543

 

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14,384

 

 

 

Advertisement

16,502

 

5.03

 

 

Advertisement

5.04

 

Junior subordinated debentures

 

253,566

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253,566

 

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15,011

 

 

 

Advertisement

14,101

 

7.91

 

 

Advertisement

7.44

 

Total interest-bearing liabilities

$

40,754,239

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$

35,289,421

 

Advertisement

$

1,126,709

 

 

$

Advertisement

731,376

 

3.69

%

 

Advertisement

2.77

%

Non-interest-bearing deposits

 

10,041,972

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11,224,841

 

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Other liabilities

 

1,589,790

 

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1,505,289

 

 

Advertisement

 

 

 

 

 

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Equity

 

5,628,346

 

 

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5,008,648

 

 

 

Advertisement

 

 

 

 

Total liabilities and shareholders’ equity

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$

58,014,347

 

 

$

Advertisement

53,028,199

 

 

 

 

Advertisement

 

 

 

Interest rate spread(4)(7)

 

Advertisement

 

 

 

 

 

Advertisement

2.61

%

 

2.89

%

Advertisement

Less: Fully taxable-equivalent adjustment

 

 

 

 

Advertisement

(8,820

)

 

 

(7,357

Advertisement

)

(0.02

)

 

(0.02

Advertisement

)

Net free funds/contribution(8)

$

13,810,040

 

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$

14,443,925

 

 

Advertisement

 

 

0.93

 

 

Advertisement

0.81

 

Net interest income/margin (GAAP)(4)

 

 

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$

1,437,387

 

 

Advertisement

$

1,367,890

 

3.52

%

Advertisement

 

3.68

%

Fully taxable-equivalent adjustment

 

Advertisement

 

 

 

8,820

 

Advertisement

 

 

7,357

 

0.02

Advertisement

 

 

0.02

 

Net interest income/margin, fully taxable-equivalent (non-GAAP)(4)

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$

1,446,207

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$

1,375,247

 

Advertisement

3.54

%

 

3.70

%

Advertisement

(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 18: 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

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+200 Basis Points

 

+100 Basis Points

 

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-100 Basis Points

 

-200 Basis Points

Sep 30, 2024

 

Advertisement

1.2

%

 

1.1

%

Advertisement

 

0.4

%

 

(0.9

Advertisement

)%

Jun 30, 2024

 

1.5

 

Advertisement

 

1.0

 

 

0.6

Advertisement

 

 

(0.0

)

Mar 31, 2024

Advertisement

 

1.9

 

 

1.4

Advertisement

 

 

1.5

 

 

Advertisement

1.6

 

Dec 31, 2023

 

2.6

Advertisement

 

 

1.8

 

 

Advertisement

0.4

 

 

(0.7

)

Advertisement

Sep 30, 2023

 

3.3

 

 

Advertisement

1.9

 

 

(2.0

)

Advertisement

 

(5.2

)

Ramp Scenario

+200 Basis Points

Advertisement

 

+100 Basis Points

 

-100 Basis Points

 

Advertisement

-200 Basis Points

Sep 30, 2024

1.6

%

 

Advertisement

1.2

%

 

0.7

%

Advertisement

 

0.5

%

Jun 30, 2024

1.2

Advertisement

 

 

1.0

 

 

Advertisement

0.9

 

 

1.0

 

Advertisement

Mar 31, 2024

0.8

 

 

0.6

Advertisement

 

 

1.3

 

 

Advertisement

2.0

 

Dec 31, 2023

1.6

 

Advertisement

 

1.2

 

 

(0.3

Advertisement

)

 

(1.5

)

Sep 30, 2023

Advertisement

1.7

 

 

1.2

 

Advertisement

 

(0.5

)

 

(2.4

Advertisement

)

As shown above, the magnitude of potential changes in net interest income in various interest rate scenarios has continued to remain relatively neutral. Given the recent unprecedented rise in interest rates, the Company has made a conscious effort to reposition its exposure to changing interest rates given the uncertainty of the future interest rate environment. To this end, management has executed various derivative instruments including collars and receive fixed swaps to hedge variable rate loan exposures and originated a higher percentage of its loan originations in longer term fixed rate loans. The Company will continue to monitor current and projected interest rates and may execute additional derivatives to mitigate potential fluctuations in the net interest margin in future periods.

TABLE 9: MATURITIES AND SENSITIVITIES TO CHANGES IN INTEREST RATES

 

Loans repricing or contractual maturity period

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As of September 30, 2024

One year or
less

 

From one to
five years

 

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From five to fifteen years

 

After fifteen years

 

Total

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(In thousands)

 

 

 

 

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Commercial

 

 

 

 

Advertisement

 

 

 

 

 

Advertisement

Fixed rate

$

442,214

 

 

Advertisement

$

3,352,273

 

$

1,914,643

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$

23,532

 

$

Advertisement

5,732,662

Variable rate

 

9,513,446

 

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1,585

 

 

Advertisement

 

 

 

Advertisement

 

9,515,031

Total commercial

$

9,955,660

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$

3,353,858

 

Advertisement

$

1,914,643

 

$

23,532

Advertisement

 

$

15,247,693

Commercial real estate

 

Advertisement

 

 

 

 

 

Advertisement

 

 

 

Fixed rate

$

Advertisement

570,054

 

 

$

2,866,473

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$

420,951

 

$

Advertisement

55,521

 

$

3,912,999

Variable rate

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8,868,451

 

 

 

Advertisement

11,899

 

 

68

 

Advertisement

 

 

 

8,880,418

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Total commercial real estate

$

9,438,505

 

 

Advertisement

$

2,878,372

 

$

421,019

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$

55,521

 

$

Advertisement

12,793,417

Home equity

 

 

 

Advertisement

 

 

 

 

 

Advertisement

 

Fixed rate

$

8,588

 

Advertisement

 

$

1,593

 

$

Advertisement

 

$

22

 

Advertisement

$

10,203

Variable rate

 

416,840

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Advertisement

 

 

 

Advertisement

 

 

416,840

Total home equity

$

Advertisement

425,428

 

 

$

1,593

Advertisement

 

$

 

$

Advertisement

22

 

$

427,043

Residential real estate

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Advertisement

 

 

 

 

Fixed rate

Advertisement

$

7,088

 

 

$

Advertisement

5,468

 

$

75,934

 

Advertisement

$

1,086,008

 

$

1,174,498

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Variable rate

 

92,075

 

 

Advertisement

 

512,374

 

 

1,609,091

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Advertisement

2,213,540

Total residential real estate

$

99,163

 

Advertisement

 

$

517,842

 

$

Advertisement

1,685,025

 

$

1,086,008

 

Advertisement

$

3,388,038

Premium finance receivables – property & casualty

 

 

Advertisement

 

 

 

 

 

Advertisement

 

 

Fixed rate

$

7,049,022

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$

82,659

 

Advertisement

$

 

$

Advertisement

 

$

7,131,681

Variable rate

 

Advertisement

 

 

 

Advertisement

 

 

 

 

Advertisement

 

 

Total premium finance receivables – property & casualty

Advertisement

$

7,049,022

 

 

$

Advertisement

82,659

 

$

 

Advertisement

$

 

$

7,131,681

Advertisement

Premium finance receivables – life insurance

 

 

 

 

Advertisement

 

 

 

 

 

Advertisement

Fixed rate

$

160,090

 

 

Advertisement

$

444,534

 

$

4,000

Advertisement

 

$

4,654

 

$

Advertisement

613,278

Variable rate

 

7,383,621

 

Advertisement

 

 

 

 

Advertisement

 

 

 

Advertisement

 

7,383,621

Total premium finance receivables – life insurance

$

7,543,711

Advertisement

 

 

$

444,534

 

Advertisement

$

4,000

 

$

4,654

Advertisement

 

$

7,996,899

Consumer and other

 

Advertisement

 

 

 

 

 

Advertisement

 

 

 

Fixed rate

$

Advertisement

17,226

 

 

$

7,218

Advertisement

 

$

841

 

$

Advertisement

998

 

$

26,283

Variable rate

Advertisement

 

56,393

 

 

 

Advertisement

 

 

 

Advertisement

 

 

 

56,393

Advertisement

Total consumer and other

$

73,619

 

 

Advertisement

$

7,218

 

$

841

Advertisement

 

$

998

 

$

Advertisement

82,676

 

 

 

 

Advertisement

 

 

 

 

 

Advertisement

 

Total per category

 

 

 

Advertisement

 

 

 

 

 

Advertisement

 

Fixed rate

$

8,254,282

 

Advertisement

 

$

6,760,218

 

$

Advertisement

2,416,369

 

$

1,170,735

 

Advertisement

$

18,601,604

Variable rate

 

26,330,826

Advertisement

 

 

 

525,858

 

Advertisement

 

1,609,159

 

 

Advertisement

 

 

28,465,843

Total loans, net of unearned income

$

Advertisement

34,585,108

 

 

$

7,286,076

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$

4,025,528

 

$

Advertisement

1,170,735

 

$

47,067,447

Less: Existing cash flow hedging derivatives

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(6,000,000

)

 

 

Advertisement

 

 

 

 

 

Advertisement

 

Less: Cash flow hedging derivatives effective in Q4 2024

 

(700,000

)

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Advertisement

 

 

 

Total loans repricing or maturing in one year or less, adjusted for cash flow hedging activity

$

Advertisement

27,885,108

 

 

 

 

Advertisement

 

 

 

 

 

Advertisement

 

 

 

 

 

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Variable Rate Loan Pricing by Index:

 

 

 

 

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SOFR tenors

 

 

 

 

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$

Advertisement

17,155,288

12- month CMT

 

 

 

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6,242,461

Prime

 

 

Advertisement

 

 

 

 

 

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3,545,047

Fed Funds

 

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Advertisement

 

 

 

951,119

Ameribor tenors

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Advertisement

 

 

 

 

237,486

Advertisement

Other U.S. Treasury tenors

 

 

 

 

Advertisement

 

 

 

 

 

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196,990

Other

 

 

 

Advertisement

 

 

 

 

 

Advertisement

 

137,452

Total variable rate

 

 

Advertisement

 

 

 

 

 

Advertisement

 

$

28,465,843

SOFR – Secured Overnight Financing Rate.
CMT – Constant Maturity Treasury Rate.
Ameribor – American Interbank Offered Rate.

Graph available at the following link: http://ml.globenewswire.com/Resource/Download/9d3dafaf-55b5-40b8-9717-0f757fa58f36

Advertisement

Source: Bloomberg

As noted in the table on the previous page, the majority of the Company’s portfolio is tied to SOFR and CMT indices which, as shown in the table above, do not mirror the same changes as the Prime rate which has historically moved when the Federal Reserve raises or lowers interest rates. Specifically, the Company has variable rate loans of $13.7 billion tied to one-month SOFR and $6.2 billion tied to twelve-month CMT. The above chart shows:

 

 

Basis Point (bp) Change in

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1-month
SOFR

 

12- month
CMT

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Prime

 

Third Quarter 2024

 

Advertisement

(49

)

bps

(111

)

Advertisement

bps

(50

)

bps

Second Quarter 2024

Advertisement

 

1

 

 

6

Advertisement

 

 

0

 

 

Advertisement

First Quarter 2024

 

(2

)

 

Advertisement

24

 

 

0

 

Advertisement

 

Fourth Quarter 2023

 

3

 

Advertisement

 

(67

)

 

0

Advertisement

 

 

Third Quarter 2023

 

18

Advertisement

 

 

6

 

 

Advertisement

25

 

 

TABLE 10: ALLOWANCE FOR CREDIT LOSSES

 

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Three Months Ended

Nine Months Ended

 

 

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Sep 30,

 

Jun 30,

 

Mar 31,

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Dec 31,

 

Sep 30,

Sep 30,

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Sep 30,

(Dollars in thousands)

 

2024

Advertisement

 

2024

 

2024

 

Advertisement

2023

 

2023

2024

 

Advertisement

2023

Allowance for credit losses at beginning of period

 

$

437,560

Advertisement

 

 

$

427,504

 

Advertisement

 

$

427,612

 

 

Advertisement

$

399,531

 

 

$

Advertisement

387,786

 

$

427,612

 

Advertisement

 

$

357,936

 

Cumulative effect adjustment from the adoption of ASU 2022-02

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Advertisement

 

 

 

 

Advertisement

 

 

 

Advertisement

 

 

 

 

Advertisement

 

 

 

 

Advertisement

741

 

Provision for credit losses – Other

 

 

Advertisement

6,787

 

 

 

40,061

Advertisement

 

 

 

21,673

 

Advertisement

 

 

42,908

 

 

Advertisement

 

19,923

 

 

68,521

Advertisement

 

 

 

71,482

 

Advertisement

Provision for credit losses – Day 1 on non-PCD assets acquired during the period

 

 

15,547

 

Advertisement

 

 

 

 

Advertisement

 

 

 

 

Advertisement

 

 

 

Advertisement

 

 

15,547

 

 

Advertisement

 

 

Initial allowance for credit losses recognized on PCD assets acquired during the period

 

Advertisement

 

3,004

 

 

 

Advertisement

 

 

 

Advertisement

 

 

 

 

Advertisement

 

 

 

 

Advertisement

3,004

 

 

 

Advertisement

 

Other adjustments

 

 

30

Advertisement

 

 

 

(19

)

Advertisement

 

 

(31

)

 

Advertisement

 

62

 

 

 

Advertisement

(60

)

 

(20

)

Advertisement

 

 

(15

)

Charge-offs:

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Advertisement

 

 

 

 

 

Advertisement

 

 

 

Commercial

 

Advertisement

 

22,975

 

 

 

Advertisement

9,584

 

 

 

11,215

Advertisement

 

 

 

5,114

 

Advertisement

 

 

2,427

 

 

Advertisement

43,774

 

 

 

10,599

Advertisement

 

Commercial real estate

 

 

95

Advertisement

 

 

 

15,526

 

Advertisement

 

 

5,469

 

 

Advertisement

 

5,386

 

 

 

Advertisement

1,713

 

 

21,090

 

Advertisement

 

 

9,842

 

Home equity

Advertisement

 

 

 

 

Advertisement

 

 

 

 

Advertisement

74

 

 

 

Advertisement

 

 

 

227

 

Advertisement

 

74

 

 

 

Advertisement

227

 

Residential real estate

 

 

Advertisement

 

 

 

23

Advertisement

 

 

 

38

 

Advertisement

 

 

114

 

 

Advertisement

 

78

 

 

61

Advertisement

 

 

 

78

 

Advertisement

Premium finance receivables – property & casualty

 

 

7,790

 

Advertisement

 

 

9,486

 

 

Advertisement

 

6,938

 

 

 

Advertisement

6,706

 

 

 

5,830

Advertisement

 

 

24,214

 

 

Advertisement

 

14,978

 

Premium finance receivables – life insurance

 

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4

 

 

 

Advertisement

 

 

 

Advertisement

 

 

 

 

Advertisement

 

 

18

 

 

Advertisement

4

 

 

 

173

Advertisement

 

Consumer and other

 

 

154

Advertisement

 

 

 

137

 

Advertisement

 

 

107

 

 

Advertisement

 

148

 

 

 

Advertisement

184

 

 

398

 

Advertisement

 

 

447

 

Total charge-offs

Advertisement

 

 

31,018

 

 

Advertisement

 

34,756

 

 

 

Advertisement

23,841

 

 

 

17,468

Advertisement

 

 

 

10,477

 

Advertisement

 

89,615

 

 

 

Advertisement

36,344

 

Recoveries:

 

 

Advertisement

 

 

 

 

 

Advertisement

 

 

 

 

 

Advertisement

 

Commercial

 

 

649

Advertisement

 

 

 

950

 

Advertisement

 

 

479

 

 

Advertisement

 

592

 

 

 

Advertisement

1,162

 

 

2,078

 

Advertisement

 

 

2,059

 

Commercial real estate

Advertisement

 

 

30

 

 

Advertisement

 

90

 

 

 

Advertisement

31

 

 

 

92

Advertisement

 

 

 

243

 

Advertisement

 

151

 

 

 

Advertisement

368

 

Home equity

 

 

Advertisement

101

 

 

 

35

Advertisement

 

 

 

29

 

Advertisement

 

 

34

 

 

Advertisement

 

33

 

 

165

Advertisement

 

 

 

105

 

Advertisement

Residential real estate

 

 

5

 

Advertisement

 

 

8

 

 

Advertisement

 

2

 

 

 

Advertisement

10

 

 

 

1

Advertisement

 

 

15

 

 

Advertisement

 

11

 

Premium finance receivables – property & casualty

 

Advertisement

 

3,436

 

 

 

Advertisement

3,658

 

 

 

1,519

Advertisement

 

 

 

1,820

 

Advertisement

 

 

906

 

 

Advertisement

8,613

 

 

 

3,110

Advertisement

 

Premium finance receivables – life insurance

 

 

41

Advertisement

 

 

 

5

 

Advertisement

 

 

8

 

 

Advertisement

 

7

 

 

 

Advertisement

 

 

54

 

Advertisement

 

 

9

 

Consumer and other

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21

 

 

Advertisement

 

24

 

 

 

Advertisement

23

 

 

 

24

Advertisement

 

 

 

14

 

Advertisement

 

68

 

 

 

Advertisement

69

 

Total recoveries

 

 

Advertisement

4,283

 

 

 

4,770

Advertisement

 

 

 

2,091

 

Advertisement

 

 

2,579

 

 

Advertisement

 

2,359

 

 

11,144

Advertisement

 

 

 

5,731

 

Advertisement

Net charge-offs

 

 

(26,735

)

Advertisement

 

 

(29,986

)

 

Advertisement

 

(21,750

)

 

 

Advertisement

(14,889

)

 

 

(8,118

Advertisement

)

 

(78,471

)

 

Advertisement

 

(30,613

)

Allowance for credit losses at period end

 

Advertisement

$

436,193

 

 

$

Advertisement

437,560

 

 

$

427,504

Advertisement

 

 

$

427,612

 

Advertisement

 

$

399,531

 

$

Advertisement

436,193

 

 

$

399,531

Advertisement

 

 

 

 

 

Advertisement

 

 

 

 

 

Advertisement

 

 

 

 

 

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Annualized net charge-offs (recoveries) by category as a percentage of its own respective category’s average:

 

 

 

Commercial

Advertisement

 

 

0.61

%

 

Advertisement

 

0.25

%

 

 

Advertisement

0.33

%

 

 

0.14

Advertisement

%

 

 

0.04

%

Advertisement

 

0.41

%

 

 

Advertisement

0.09

%

Commercial real estate

 

 

Advertisement

0.00

 

 

 

0.53

Advertisement

 

 

 

0.19

 

Advertisement

 

 

0.19

 

 

Advertisement

 

0.05

 

 

0.23

Advertisement

 

 

 

0.12

 

Advertisement

Home equity

 

 

(0.10

)

Advertisement

 

 

(0.04

)

 

Advertisement

 

0.05

 

 

 

Advertisement

(0.04

)

 

 

0.23

Advertisement

 

 

(0.03

)

 

Advertisement

 

0.05

 

Residential real estate

 

Advertisement

 

0.00

 

 

 

Advertisement

0.00

 

 

 

0.01

Advertisement

 

 

 

0.02

 

Advertisement

 

 

0.01

 

 

Advertisement

0.00

 

 

 

0.00

Advertisement

 

Premium finance receivables – property & casualty

 

 

0.24

Advertisement

 

 

 

0.33

 

Advertisement

 

 

0.32

 

 

Advertisement

 

0.29

 

 

 

Advertisement

0.29

 

 

0.30

 

Advertisement

 

 

0.26

 

Premium finance receivables – life insurance

Advertisement

 

 

0.00

 

 

Advertisement

 

(0.00

)

 

 

Advertisement

(0.00

)

 

 

(0.00

Advertisement

)

 

 

0.00

 

Advertisement

 

(0.00

)

 

 

Advertisement

0.00

 

Consumer and other

 

 

Advertisement

0.63

 

 

 

0.56

Advertisement

 

 

 

0.42

 

Advertisement

 

 

0.58

 

 

Advertisement

 

0.65

 

 

0.54

Advertisement

 

 

 

0.60

 

Advertisement

Total loans, net of unearned income

 

 

0.23

%

Advertisement

 

 

0.28

%

 

Advertisement

 

0.21

%

 

 

Advertisement

0.14

%

 

 

0.08

Advertisement

%

 

0.24

 

 

Advertisement

 

0.10

%

 

 

Advertisement

 

 

 

 

 

Advertisement

 

 

 

 

 

Advertisement

 

 

Loans at period end

 

$

Advertisement

47,067,447

 

 

$

44,675,531

Advertisement

 

 

$

43,230,706

 

Advertisement

 

$

42,131,831

 

 

Advertisement

$

41,446,032

 

 

 

Advertisement

 

Allowance for loan losses as a percentage of loans at period end

 

 

0.77

Advertisement

%

 

 

0.81

%

Advertisement

 

 

0.81

%

 

Advertisement

 

0.82

%

 

 

Advertisement

0.76

%

 

 

 

Advertisement

Allowance for loan and unfunded lending-related commitment losses as a percentage of loans at period end

 

 

0.93

 

Advertisement

 

 

0.98

 

 

Advertisement

 

0.99

 

 

 

Advertisement

1.01

 

 

 

0.96

Advertisement

 

 

 

 

TABLE 11: ALLOWANCE AND PROVISION FOR CREDIT LOSSES BY COMPONENT

Advertisement

 

 

Three Months Ended

Nine Months Ended

 

Advertisement

 

Sep 30,

 

Jun 30,

 

Advertisement

Mar 31,

 

Dec 31,

 

Sep 30,

Advertisement

Sep 30,

 

Sep 30,

(In thousands)

 

Advertisement

2024

 

2024

 

2024

Advertisement

 

2023

 

2023

2024

Advertisement

 

2023

Provision for loan losses – Other

 

$

Advertisement

6,782

 

 

$

45,111

Advertisement

 

 

$

26,159

 

Advertisement

 

$

44,023

 

 

Advertisement

$

20,717

 

$

78,052

Advertisement

 

 

$

74,753

 

Advertisement

Provision for credit losses – Day 1 on non-PCD assets acquired during the period

 

 

15,547

 

Advertisement

 

 

 

 

Advertisement

 

 

 

 

Advertisement

 

 

 

Advertisement

 

 

15,547

 

 

Advertisement

 

 

Provision for unfunded lending-related commitments losses – Other

 

Advertisement

 

17

 

 

 

Advertisement

(5,212

)

 

 

(4,468

Advertisement

)

 

 

(1,081

)

Advertisement

 

 

(769

)

 

Advertisement

(9,663

)

 

 

(3,164

Advertisement

)

Provision for held-to-maturity securities losses

 

 

(12

Advertisement

)

 

 

162

 

Advertisement

 

 

(18

)

 

Advertisement

 

(34

)

 

 

Advertisement

(25

)

 

132

 

Advertisement

 

 

(107

)

Provision for credit losses

Advertisement

 

$

22,334

 

 

Advertisement

$

40,061

 

 

$

Advertisement

21,673

 

 

$

42,908

Advertisement

 

 

$

19,923

 

Advertisement

$

84,068

 

 

$

Advertisement

71,482

 

 

 

 

Advertisement

 

 

 

 

 

Advertisement

 

 

 

 

 

Advertisement

 

Allowance for loan losses

 

$

360,279

Advertisement

 

 

$

363,719

 

Advertisement

 

$

348,612

 

 

Advertisement

$

344,235

 

 

$

Advertisement

315,039

 

 

 

 

Advertisement

Allowance for unfunded lending-related commitments losses

 

 

75,435

 

Advertisement

 

 

73,350

 

 

Advertisement

 

78,563

 

 

 

Advertisement

83,030

 

 

 

84,111

Advertisement

 

 

 

 

Allowance for loan losses and unfunded lending-related commitments losses

Advertisement

 

 

435,714

 

 

Advertisement

 

437,069

 

 

 

Advertisement

427,175

 

 

 

427,265

Advertisement

 

 

 

399,150

 

Advertisement

 

 

 

Allowance for held-to-maturity securities losses

 

Advertisement

 

479

 

 

 

Advertisement

491

 

 

 

329

Advertisement

 

 

 

347

 

Advertisement

 

 

381

 

 

Advertisement

 

 

Allowance for credit losses

 

$

Advertisement

436,193

 

 

$

437,560

Advertisement

 

 

$

427,504

 

Advertisement

 

$

427,612

 

 

Advertisement

$

399,531

 

 

 

Advertisement

 

TABLE 12: ALLOWANCE BY LOAN PORTFOLIO

The table below summarizes the calculation of allowance for loan losses and allowance for unfunded lending-related commitments losses for the Company’s loan portfolios as well as core and niche portfolios, as of September 30, 2024, June 30, 2024 and March 31, 2024.

 

As of Sep 30, 2024

Advertisement

As of Jun 30, 2024

As of Mar 31, 2024

(Dollars in thousands)

Recorded
Investment

 

Advertisement

Calculated
Allowance

 

% of its
category’s balance

Recorded
Investment

 

Advertisement

Calculated
Allowance

 

% of its
category’s balance

Recorded
Investment

 

Advertisement

Calculated
Allowance

 

% of its
category’s balance

Commercial:

 

Advertisement

 

 

 

 

 

Advertisement

 

 

 

 

 

Advertisement

 

 

 

 

Commercial, industrial and other

Advertisement

$

15,247,693

 

$

171,598

Advertisement

 

1.13

%

$

14,154,462

Advertisement

 

$

181,991

 

1.29

Advertisement

%

$

13,503,481

 

$

Advertisement

166,518

 

1.23

%

Commercial real estate:

Advertisement

 

 

 

 

 

Advertisement

 

 

 

 

 

Advertisement

 

 

 

 

 

Advertisement

Construction and development

 

2,403,690

 

 

Advertisement

97,949

 

4.07

 

 

Advertisement

2,260,551

 

 

93,154

 

Advertisement

4.12

 

 

2,150,314

 

Advertisement

 

96,052

 

4.47

 

Advertisement

Non-construction

 

10,389,727

 

 

Advertisement

133,195

 

1.28

 

 

Advertisement

9,686,646

 

 

130,574

 

Advertisement

1.35

 

 

9,483,123

 

Advertisement

 

130,000

 

1.37

 

Advertisement

Home equity

 

427,043

 

 

Advertisement

8,823

 

2.07

 

 

Advertisement

356,313

 

 

7,242

 

Advertisement

2.03

 

 

340,349

 

Advertisement

 

7,191

 

2.11

 

Advertisement

Residential real estate

 

3,388,038

 

 

Advertisement

9,745

 

0.29

 

 

Advertisement

3,067,335

 

 

8,773

 

Advertisement

0.29

 

 

2,890,266

 

Advertisement

 

13,701

 

0.47

 

Advertisement

Premium finance receivables

 

 

 

 

Advertisement

 

 

 

 

 

Advertisement

 

 

 

 

 

Advertisement

 

Property and casualty insurance

 

7,131,681

 

Advertisement

 

13,045

 

0.18

 

Advertisement

 

7,100,753

 

 

14,053

Advertisement

 

0.20

 

 

6,940,019

Advertisement

 

 

12,645

 

0.18

Advertisement

 

Life insurance

 

7,996,899

 

Advertisement

 

698

 

0.01

 

Advertisement

 

7,962,115

 

 

693

Advertisement

 

0.01

 

 

7,872,033

Advertisement

 

 

685

 

0.01

Advertisement

 

Consumer and other

 

82,676

 

Advertisement

 

661

 

0.80

 

Advertisement

 

87,356

 

 

589

Advertisement

 

0.67

 

 

51,121

Advertisement

 

 

383

 

0.75

Advertisement

 

Total loans, net of unearned income

$

47,067,447

 

Advertisement

$

435,714

 

0.93

%

Advertisement

$

44,675,531

 

$

437,069

Advertisement

 

0.98

%

$

43,230,706

Advertisement

 

$

427,175

 

0.99

Advertisement

%

 

 

 

 

Advertisement

 

 

 

 

 

Advertisement

 

 

 

 

 

Advertisement

 

 

Total core loans(1)

$

28,363,712

Advertisement

 

$

396,394

 

1.40

Advertisement

%

$

26,259,487

 

$

Advertisement

398,494

 

1.52

%

$

Advertisement

25,402,132

 

$

382,372

 

Advertisement

1.51

%

Total niche loans(1)

 

18,703,735

Advertisement

 

 

39,320

 

0.21

Advertisement

 

 

18,416,044

 

 

Advertisement

38,575

 

0.21

 

 

Advertisement

17,828,574

 

 

44,803

 

Advertisement

0.25

 

 

 

 

Advertisement

 

 

 

 

 

Advertisement

 

 

 

 

 

Advertisement

 

 

 

(1)   See Table 1 for additional detail on core and niche loans.

TABLE 13: LOAN PORTFOLIO AGING

Advertisement

(In thousands)

 

Sep 30, 2024

 

Jun 30, 2024

Advertisement

 

Mar 31, 2024

 

Dec 31, 2023

 

Advertisement

Sep 30, 2023

Loan Balances:

 

 

 

Advertisement

 

 

 

 

 

Advertisement

 

 

Commercial

 

 

Advertisement

 

 

 

 

 

Advertisement

 

 

 

Nonaccrual

 

Advertisement

$

63,826

 

$

51,087

Advertisement

 

$

31,740

 

$

Advertisement

38,940

 

$

43,569

90+ days and still accruing

Advertisement

 

 

20

 

 

Advertisement

304

 

 

27

 

Advertisement

 

98

 

 

200

Advertisement

60-89 days past due

 

 

32,560

 

Advertisement

 

16,485

 

 

30,248

Advertisement

 

 

19,488

 

 

Advertisement

22,889

30-59 days past due

 

 

46,057

Advertisement

 

 

36,358

 

 

Advertisement

77,715

 

 

85,743

 

Advertisement

 

35,681

Current

 

 

Advertisement

15,105,230

 

 

14,050,228

 

Advertisement

 

13,363,751

 

 

12,687,784

Advertisement

 

 

12,623,134

Total commercial

 

Advertisement

$

15,247,693

 

$

14,154,462

Advertisement

 

$

13,503,481

 

$

Advertisement

12,832,053

 

$

12,725,473

Commercial real estate

Advertisement

 

 

 

 

 

Advertisement

 

 

 

 

 

Advertisement

Nonaccrual

 

$

42,071

 

Advertisement

$

48,289

 

$

39,262

Advertisement

 

$

35,459

 

$

Advertisement

17,043

90+ days and still accruing

 

 

225

Advertisement

 

 

 

 

Advertisement

 

 

 

Advertisement

 

1,092

60-89 days past due

 

 

Advertisement

13,439

 

 

6,555

 

Advertisement

 

16,713

 

 

8,515

Advertisement

 

 

7,395

30-59 days past due

 

Advertisement

 

48,346

 

 

38,065

Advertisement

 

 

32,998

 

 

Advertisement

20,634

 

 

60,984

Current

Advertisement

 

 

12,689,336

 

 

Advertisement

11,854,288

 

 

11,544,464

 

Advertisement

 

11,279,556

 

 

10,859,666

Advertisement

Total commercial real estate

 

$

12,793,417

 

Advertisement

$

11,947,197

 

$

11,633,437

Advertisement

 

$

11,344,164

 

$

Advertisement

10,946,180

Home equity

 

 

 

Advertisement

 

 

 

 

 

Advertisement

 

 

Nonaccrual

 

$

Advertisement

1,122

 

$

1,100

 

Advertisement

$

838

 

$

1,341

Advertisement

 

$

1,363

90+ days and still accruing

 

Advertisement

 

 

 

Advertisement

 

 

 

 

Advertisement

 

 

60-89 days past due

Advertisement

 

 

1,035

 

 

Advertisement

275

 

 

212

 

Advertisement

 

62

 

 

219

Advertisement

30-59 days past due

 

 

2,580

 

Advertisement

 

1,229

 

 

1,617

Advertisement

 

 

2,263

 

 

Advertisement

1,668

Current

 

 

422,306

Advertisement

 

 

353,709

 

 

Advertisement

337,682

 

 

340,310

 

Advertisement

 

340,008

Total home equity

 

$

Advertisement

427,043

 

$

356,313

 

Advertisement

$

340,349

 

$

343,976

Advertisement

 

$

343,258

Residential real estate

 

Advertisement

 

 

 

 

 

Advertisement

 

 

 

 

Early buy-out loans guaranteed by U.S. government agencies(1)

Advertisement

 

$

135,389

 

$

Advertisement

134,178

 

$

143,350

 

Advertisement

$

150,583

 

$

168,973

Advertisement

Nonaccrual

 

 

17,959

 

Advertisement

 

18,198

 

 

17,901

Advertisement

 

 

15,391

 

 

Advertisement

16,103

90+ days and still accruing

 

 

Advertisement

 

 

 

 

Advertisement

 

 

 

Advertisement

 

60-89 days past due

 

 

Advertisement

6,364

 

 

1,977

 

Advertisement

 

 

 

2,325

Advertisement

 

 

1,145

30-59 days past due

 

Advertisement

 

2,160

 

 

130

Advertisement

 

 

24,523

 

 

Advertisement

22,942

 

 

904

Current

Advertisement

 

 

3,226,166

 

 

Advertisement

2,912,852

 

 

2,704,492

 

Advertisement

 

2,578,425

 

 

2,520,478

Advertisement

Total residential real estate

 

$

3,388,038

 

Advertisement

$

3,067,335

 

$

2,890,266

Advertisement

 

$

2,769,666

 

$

Advertisement

2,707,603

Premium finance receivables – property & casualty

 

 

 

Advertisement

 

 

 

 

 

Advertisement

 

 

Nonaccrual

 

$

Advertisement

36,079

 

$

32,722

 

Advertisement

$

32,648

 

$

27,590

Advertisement

 

$

26,756

90+ days and still accruing

 

Advertisement

 

18,235

 

 

22,427

Advertisement

 

 

25,877

 

 

Advertisement

20,135

 

 

16,253

60-89 days past due

Advertisement

 

 

18,740

 

 

Advertisement

29,925

 

 

15,274

 

Advertisement

 

23,236

 

 

16,552

Advertisement

30-59 days past due

 

 

30,204

 

Advertisement

 

45,927

 

 

59,729

Advertisement

 

 

50,437

 

 

Advertisement

31,919

Current

 

 

7,028,423

Advertisement

 

 

6,969,752

 

 

Advertisement

6,806,491

 

 

6,782,131

 

Advertisement

 

6,631,267

Total Premium finance receivables – property & casualty

 

$

Advertisement

7,131,681

 

$

7,100,753

 

Advertisement

$

6,940,019

 

$

6,903,529

Advertisement

 

$

6,722,747

Premium finance receivables – life insurance

 

Advertisement

 

 

 

 

 

Advertisement

 

 

 

 

Nonaccrual

Advertisement

 

$

 

$

Advertisement

 

$

 

Advertisement

$

 

$

Advertisement

90+ days and still accruing

 

 

 

Advertisement

 

 

 

Advertisement

 

 

 

 

Advertisement

10,679

60-89 days past due

 

 

10,902

Advertisement

 

 

4,118

 

 

Advertisement

32,482

 

 

16,206

 

Advertisement

 

41,894

30-59 days past due

 

 

Advertisement

74,432

 

 

17,693

 

Advertisement

 

100,137

 

 

45,464

Advertisement

 

 

14,972

Current

 

Advertisement

 

7,911,565

 

 

7,940,304

Advertisement

 

 

7,739,414

 

 

Advertisement

7,816,273

 

 

7,864,263

Total Premium finance receivables – life insurance

Advertisement

 

$

7,996,899

 

$

Advertisement

7,962,115

 

$

7,872,033

 

Advertisement

$

7,877,943

 

$

7,931,808

Advertisement

Consumer and other

 

 

 

 

Advertisement

 

 

 

 

 

Advertisement

 

Nonaccrual

 

$

2

Advertisement

 

$

3

 

$

Advertisement

19

 

$

22

 

Advertisement

$

16

90+ days and still accruing

 

 

Advertisement

148

 

 

121

 

Advertisement

 

47

 

 

54

Advertisement

 

 

27

60-89 days past due

 

Advertisement

 

22

 

 

81

Advertisement

 

 

16

 

 

Advertisement

25

 

 

196

30-59 days past due

Advertisement

 

 

264

 

 

Advertisement

366

 

 

210

 

Advertisement

 

165

 

 

519

Advertisement

Current

 

 

82,240

 

Advertisement

 

86,785

 

 

50,829

Advertisement

 

 

60,234

 

 

Advertisement

68,205

Total consumer and other

 

$

82,676

Advertisement

 

$

87,356

 

$

Advertisement

51,121

 

$

60,500

 

Advertisement

$

68,963

Total loans, net of unearned income

 

 

Advertisement

 

 

 

 

 

Advertisement

 

 

 

Early buy-out loans guaranteed by U.S. government agencies(1)

 

Advertisement

$

135,389

 

$

134,178

Advertisement

 

$

143,350

 

$

Advertisement

150,583

 

$

168,973

Nonaccrual

Advertisement

 

 

161,059

 

 

Advertisement

151,399

 

 

122,408

 

Advertisement

 

118,743

 

 

104,850

Advertisement

90+ days and still accruing

 

 

18,628

 

Advertisement

 

22,852

 

 

25,951

Advertisement

 

 

20,287

 

 

Advertisement

28,251

60-89 days past due

 

 

83,062

Advertisement

 

 

59,416

 

 

Advertisement

94,945

 

 

69,857

 

Advertisement

 

90,290

30-59 days past due

 

 

Advertisement

204,043

 

 

139,768

 

Advertisement

 

296,929

 

 

227,648

Advertisement

 

 

146,647

Current

 

Advertisement

 

46,465,266

 

 

44,167,918

Advertisement

 

 

42,547,123

 

 

Advertisement

41,544,713

 

 

40,907,021

Total loans, net of unearned income

Advertisement

 

$

47,067,447

 

$

Advertisement

44,675,531

 

$

43,230,706

 

Advertisement

$

42,131,831

 

$

41,446,032

Advertisement

(1)   Early buy-out loans are insured or guaranteed by the Federal Housing Administration or the U.S. Department of Veterans Affairs, subject to indemnifications and insurance limits for certain loans.

TABLE 14: NON-PERFORMING ASSETS(1)

 

Sep 30,

 

Advertisement

Jun 30,

 

Mar 31,

 

Dec 31,

Advertisement

 

Sep 30,

(Dollars in thousands)

2024

 

Advertisement

2024

 

2024

 

2023

Advertisement

 

2023

Loans past due greater than 90 days and still accruing:

 

 

Advertisement

 

 

 

 

 

Advertisement

 

 

Commercial

$

20

Advertisement

 

 

$

304

 

Advertisement

 

$

27

 

 

Advertisement

$

98

 

 

$

Advertisement

200

 

Commercial real estate

 

225

Advertisement

 

 

 

 

Advertisement

 

 

 

 

Advertisement

 

 

 

 

Advertisement

1,092

 

Home equity

 

Advertisement

 

 

 

 

Advertisement

 

 

 

 

Advertisement

 

 

 

 

Advertisement

 

Residential real estate

 

Advertisement

 

 

 

 

Advertisement

 

 

 

 

Advertisement

 

 

 

 

Advertisement

 

Premium finance receivables – property & casualty

 

18,235

Advertisement

 

 

 

22,427

 

Advertisement

 

 

25,877

 

 

Advertisement

 

20,135

 

 

 

Advertisement

16,253

 

Premium finance receivables – life insurance

 

Advertisement

 

 

 

 

Advertisement

 

 

 

 

Advertisement

 

 

 

 

Advertisement

10,679

 

Consumer and other

 

148

Advertisement

 

 

 

121

 

Advertisement

 

 

47

 

 

Advertisement

 

54

 

 

 

Advertisement

27

 

Total loans past due greater than 90 days and still accruing

 

18,628

Advertisement

 

 

 

22,852

 

Advertisement

 

 

25,951

 

 

Advertisement

 

20,287

 

 

 

Advertisement

28,251

 

Non-accrual loans:

 

 

Advertisement

 

 

 

 

 

Advertisement

 

 

Commercial

 

63,826

Advertisement

 

 

 

51,087

 

Advertisement

 

 

31,740

 

 

Advertisement

 

38,940

 

 

 

Advertisement

43,569

 

Commercial real estate

 

42,071

Advertisement

 

 

 

48,289

 

Advertisement

 

 

39,262

 

 

Advertisement

 

35,459

 

 

 

Advertisement

17,043

 

Home equity

 

1,122

Advertisement

 

 

 

1,100

 

Advertisement

 

 

838

 

 

Advertisement

 

1,341

 

 

 

Advertisement

1,363

 

Residential real estate

 

17,959

Advertisement

 

 

 

18,198

 

Advertisement

 

 

17,901

 

 

Advertisement

 

15,391

 

 

 

Advertisement

16,103

 

Premium finance receivables – property & casualty

 

36,079

Advertisement

 

 

 

32,722

 

Advertisement

 

 

32,648

 

 

Advertisement

 

27,590

 

 

 

Advertisement

26,756

 

Premium finance receivables – life insurance

 

Advertisement

 

 

 

 

Advertisement

 

 

 

 

Advertisement

 

 

 

 

Advertisement

 

Consumer and other

 

2

Advertisement

 

 

 

3

 

Advertisement

 

 

19

 

 

Advertisement

 

22

 

 

 

Advertisement

16

 

Total non-accrual loans

 

161,059

Advertisement

 

 

 

151,399

 

Advertisement

 

 

122,408

 

 

Advertisement

 

118,743

 

 

 

Advertisement

104,850

 

Total non-performing loans:

 

 

Advertisement

 

 

 

 

 

Advertisement

 

 

Commercial

 

63,846

Advertisement

 

 

 

51,391

 

Advertisement

 

 

31,767

 

 

Advertisement

 

39,038

 

 

 

Advertisement

43,769

 

Commercial real estate

 

42,296

Advertisement

 

 

 

48,289

 

Advertisement

 

 

39,262

 

 

Advertisement

 

35,459

 

 

 

Advertisement

18,135

 

Home equity

 

1,122

Advertisement

 

 

 

1,100

 

Advertisement

 

 

838

 

 

Advertisement

 

1,341

 

 

 

Advertisement

1,363

 

Residential real estate

 

17,959

Advertisement

 

 

 

18,198

 

Advertisement

 

 

17,901

 

 

Advertisement

 

15,391

 

 

 

Advertisement

16,103

 

Premium finance receivables – property & casualty

 

54,314

Advertisement

 

 

 

55,149

 

Advertisement

 

 

58,525

 

 

Advertisement

 

47,725

 

 

 

Advertisement

43,009

 

Premium finance receivables – life insurance

 

Advertisement

 

 

 

 

Advertisement

 

 

 

 

Advertisement

 

 

 

 

Advertisement

10,679

 

Consumer and other

 

150

Advertisement

 

 

 

124

 

Advertisement

 

 

66

 

 

Advertisement

 

76

 

 

 

Advertisement

43

 

Total non-performing loans

$

179,687

Advertisement

 

 

$

174,251

 

Advertisement

 

$

148,359

 

 

Advertisement

$

139,030

 

 

$

Advertisement

133,101

 

Other real estate owned

 

13,682

Advertisement

 

 

 

19,731

 

Advertisement

 

 

14,538

 

 

Advertisement

 

13,309

 

 

 

Advertisement

14,060

 

Total non-performing assets

$

193,369

Advertisement

 

 

$

193,982

 

Advertisement

 

$

162,897

 

 

Advertisement

$

152,339

 

 

$

Advertisement

147,161

 

Total non-performing loans by category as a percent of its own respective category’s period-end balance:

 

 

Advertisement

 

 

 

 

 

Advertisement

 

 

Commercial

 

0.42

Advertisement

%

 

 

0.36

%

Advertisement

 

 

0.24

%

 

Advertisement

 

0.30

%

 

 

Advertisement

0.34

%

Commercial real estate

 

0.33

Advertisement

 

 

 

0.40

 

Advertisement

 

 

0.34

 

 

Advertisement

 

0.31

 

 

 

Advertisement

0.17

 

Home equity

 

0.26

Advertisement

 

 

 

0.31

 

Advertisement

 

 

0.25

 

 

Advertisement

 

0.39

 

 

 

Advertisement

0.40

 

Residential real estate

 

0.53

Advertisement

 

 

 

0.59

 

Advertisement

 

 

0.62

 

 

Advertisement

 

0.56

 

 

 

Advertisement

0.59

 

Premium finance receivables – property & casualty

 

0.76

Advertisement

 

 

 

0.78

 

Advertisement

 

 

0.84

 

 

Advertisement

 

0.69

 

 

 

Advertisement

0.64

 

Premium finance receivables – life insurance

 

Advertisement

 

 

 

 

Advertisement

 

 

 

 

Advertisement

 

 

 

 

Advertisement

0.13

 

Consumer and other

 

0.18

Advertisement

 

 

 

0.14

 

Advertisement

 

 

0.13

 

 

Advertisement

 

0.13

 

 

 

Advertisement

0.06

 

Total loans, net of unearned income

 

0.38

Advertisement

%

 

 

0.39

%

Advertisement

 

 

0.34

%

 

Advertisement

 

0.33

%

 

 

Advertisement

0.32

%

Total non-performing assets as a percentage of total assets

 

0.30

Advertisement

%

 

 

0.32

%

Advertisement

 

 

0.28

%

 

Advertisement

 

0.27

%

 

 

Advertisement

0.26

%

Allowance for loan losses and unfunded lending-related commitments losses as a percentage of non-accrual loans

 

270.53

Advertisement

%

 

 

288.69

%

Advertisement

 

 

348.98

%

 

Advertisement

 

359.82

%

 

 

Advertisement

380.69

%

 

 

 

Advertisement

 

 

 

 

 

Advertisement

 

 

(1)   Excludes early buy-out loans guaranteed by U.S. government agencies. Early buy-out loans are insured or guaranteed by the Federal Housing Administration or the U.S. Department of Veterans Affairs, subject to indemnifications and insurance limits for certain loans.

Non-performing Loans Rollforward, excluding early buy-out loans guaranteed by U.S. government agencies

 

Advertisement

Three Months Ended

Nine Months Ended

 

Sep 30,

 

Advertisement

Jun 30,

 

Mar 31,

 

Dec 31,

Advertisement

 

Sep 30,

Sep 30,

 

Sep 30,

Advertisement

(In thousands)

2024

 

2024

 

Advertisement

2024

 

2023

 

2023

Advertisement

2024

 

2023

 

 

Advertisement

 

 

 

 

 

Advertisement

 

 

 

 

 

Advertisement

 

Balance at beginning of period

$

174,251

 

Advertisement

 

$

148,359

 

 

Advertisement

$

139,030

 

 

$

Advertisement

133,101

 

 

$

108,712

Advertisement

 

$

139,030

 

 

Advertisement

$

100,697

 

Additions from becoming non-performing in the respective period

 

Advertisement

42,335

 

 

 

54,376

Advertisement

 

 

 

23,142

 

Advertisement

 

 

59,010

 

 

Advertisement

 

18,666

 

 

96,711

Advertisement

 

 

 

64,367

 

Advertisement

Additions from assets acquired in the respective period

 

189

 

 

Advertisement

 

 

 

 

Advertisement

 

 

 

Advertisement

 

 

 

 

Advertisement

 

189

 

 

 

Advertisement

 

Return to performing status

 

(362

Advertisement

)

 

 

(912

)

Advertisement

 

 

(490

)

 

Advertisement

 

(24,469

)

 

 

Advertisement

(1,702

)

 

(1,274

)

Advertisement

 

 

(2,542

)

Payments received

Advertisement

 

(10,894

)

 

 

Advertisement

(9,611

)

 

 

(8,336

Advertisement

)

 

 

(10,000

)

Advertisement

 

 

(6,488

)

 

Advertisement

(20,505

)

 

 

(24,063

Advertisement

)

Transfer to OREO and other repossessed assets

 

(3,680

)

Advertisement

 

 

(6,945

)

 

Advertisement

 

(1,381

)

 

 

Advertisement

(2,623

)

 

 

(2,671

Advertisement

)

 

(10,625

)

 

Advertisement

 

(5,629

)

Charge-offs, net

 

Advertisement

(21,211

)

 

 

(7,673

Advertisement

)

 

 

(14,810

)

Advertisement

 

 

(9,480

)

 

Advertisement

 

(3,011

)

 

(28,884

Advertisement

)

 

 

(6,866

)

Advertisement

Net change for premium finance receivables

 

(941

)

 

Advertisement

 

(3,343

)

 

 

Advertisement

11,204

 

 

 

(6,509

Advertisement

)

 

 

19,595

 

Advertisement

 

(4,284

)

 

 

Advertisement

7,137

 

Balance at end of period

$

179,687

Advertisement

 

 

$

174,251

 

Advertisement

 

$

148,359

 

 

Advertisement

$

139,030

 

 

$

Advertisement

133,101

 

$

170,358

 

Advertisement

 

$

133,101

 

Other Real Estate Owned

Advertisement

 

Three Months Ended

 

Sep 30,

 

Advertisement

Jun 30,

 

Mar 31,

 

Dec 31,

Advertisement

 

Sep 30,

(In thousands)

2024

 

Advertisement

2024

 

2024

 

2023

Advertisement

 

2023

Balance at beginning of period

$

19,731

Advertisement

 

 

$

14,538

 

Advertisement

 

$

13,309

 

 

Advertisement

$

14,060

 

 

$

Advertisement

11,586

 

Disposals/resolved

 

(9,729

Advertisement

)

 

 

(1,752

)

Advertisement

 

 

 

 

Advertisement

 

(3,416

)

 

 

Advertisement

(467

)

Transfers in at fair value, less costs to sell

 

3,680

Advertisement

 

 

 

6,945

 

Advertisement

 

 

1,436

 

 

Advertisement

 

2,665

 

 

 

Advertisement

2,941

 

Fair value adjustments

 

Advertisement

 

 

 

 

Advertisement

 

 

(207

)

 

Advertisement

 

 

 

 

Advertisement

 

Balance at end of period

$

13,682

Advertisement

 

 

$

19,731

 

Advertisement

 

$

14,538

 

 

Advertisement

$

13,309

 

 

$

Advertisement

14,060

 

 

 

 

Advertisement

 

 

 

 

 

Advertisement

 

 

 

Period End

 

Advertisement

Sep 30,

 

Jun 30,

 

Mar 31,

Advertisement

 

Dec 31,

 

Sep 30,

Balance by Property Type:

Advertisement

2024

 

2024

 

2024

Advertisement

 

2023

 

2023

Residential real estate

Advertisement

$

 

 

$

Advertisement

161

 

 

$

1,146

Advertisement

 

 

$

720

 

Advertisement

 

$

441

 

Commercial real estate

Advertisement

 

13,682

 

 

 

Advertisement

19,570

 

 

 

13,392

Advertisement

 

 

 

12,589

 

Advertisement

 

 

13,619

 

Total

Advertisement

$

13,682

 

 

$

Advertisement

19,731

 

 

$

14,538

Advertisement

 

 

$

13,309

 

Advertisement

 

$

14,060

 

TABLE 15: NON-INTEREST INCOME

Advertisement

 

Three Months Ended

 

Q3 2024 compared to
Q2 2024

 

Advertisement

Q3 2024 compared to
Q3 2023

 

Sep 30,

 

Jun 30,

Advertisement

 

Mar 31,

 

Dec 31,

 

Advertisement

Sep 30,

 

 

(Dollars in thousands)

2024

Advertisement

 

2024

 

2024

 

Advertisement

2023

 

2023

 

$ Change

Advertisement

 

% Change

 

$ Change

 

Advertisement

% Change

Brokerage

$

6,139

 

Advertisement

 

$

5,588

 

 

Advertisement

$

5,556

 

 

$

Advertisement

5,349

 

 

$

4,359

Advertisement

 

 

$

551

 

Advertisement

 

10

%

 

$

Advertisement

1,780

 

 

41

%

Advertisement

Trust and asset management

 

31,085

 

 

Advertisement

 

29,825

 

 

 

Advertisement

29,259

 

 

 

27,926

Advertisement

 

 

 

29,170

 

Advertisement

 

 

1,260

 

 

Advertisement

4

 

 

 

1,915

Advertisement

 

 

7

 

Total wealth management

Advertisement

 

37,224

 

 

 

Advertisement

35,413

 

 

 

34,815

Advertisement

 

 

 

33,275

 

Advertisement

 

 

33,529

 

 

Advertisement

 

1,811

 

 

5

Advertisement

 

 

 

3,695

 

Advertisement

 

11

 

Mortgage banking

 

Advertisement

15,974

 

 

 

29,124

Advertisement

 

 

 

27,663

 

Advertisement

 

 

7,433

 

 

Advertisement

 

27,395

 

 

 

Advertisement

(13,150

)

 

(45

)

Advertisement

 

 

(11,421

)

 

Advertisement

(42

)

Service charges on deposit accounts

 

16,430

Advertisement

 

 

 

15,546

 

Advertisement

 

 

14,811

 

 

Advertisement

 

14,522

 

 

 

Advertisement

14,217

 

 

 

884

Advertisement

 

 

6

 

 

Advertisement

 

2,213

 

 

16

Advertisement

 

Gains (losses) on investment securities, net

 

3,189

 

Advertisement

 

 

(4,282

)

 

Advertisement

 

1,326

 

 

 

Advertisement

2,484

 

 

 

(2,357

Advertisement

)

 

 

7,471

 

Advertisement

 

NM

 

 

5,546

Advertisement

 

 

NM

Fees from covered call options

 

Advertisement

988

 

 

 

2,056

Advertisement

 

 

 

4,847

 

Advertisement

 

 

4,679

 

 

Advertisement

 

4,215

 

 

 

Advertisement

(1,068

)

 

(52

)

Advertisement

 

 

(3,227

)

 

Advertisement

(77

)

Trading (losses) gains, net

 

(130

Advertisement

)

 

 

70

 

Advertisement

 

 

677

 

 

Advertisement

 

(505

)

 

 

Advertisement

728

 

 

 

(200

Advertisement

)

 

NM

 

 

Advertisement

(858

)

 

NM

Operating lease income, net

Advertisement

 

15,335

 

 

 

Advertisement

13,938

 

 

 

14,110

Advertisement

 

 

 

14,162

 

Advertisement

 

 

13,863

 

 

Advertisement

 

1,397

 

 

10

Advertisement

 

 

 

1,472

 

Advertisement

 

11

 

Other:

 

Advertisement

 

 

 

 

 

Advertisement

 

 

 

 

 

Advertisement

 

 

 

 

 

Advertisement

 

Interest rate swap fees

 

2,914

 

Advertisement

 

 

3,392

 

 

Advertisement

 

2,828

 

 

 

Advertisement

4,021

 

 

 

2,913

Advertisement

 

 

 

(478

)

Advertisement

 

(14

)

 

 

Advertisement

1

 

 

 

Advertisement

BOLI

 

1,517

 

 

Advertisement

 

1,351

 

 

 

Advertisement

1,651

 

 

 

1,747

Advertisement

 

 

 

729

 

Advertisement

 

 

166

 

 

Advertisement

12

 

 

 

788

Advertisement

 

 

NM

Administrative services

 

Advertisement

1,450

 

 

 

1,322

Advertisement

 

 

 

1,217

 

Advertisement

 

 

1,329

 

 

Advertisement

 

1,336

 

 

 

Advertisement

128

 

 

10

 

Advertisement

 

 

114

 

 

Advertisement

9

 

Foreign currency remeasurement gains (losses)

 

696

Advertisement

 

 

 

(145

)

Advertisement

 

 

(1,171

)

 

Advertisement

 

1,150

 

 

 

Advertisement

(446

)

 

 

841

Advertisement

 

 

NM

 

 

Advertisement

1,142

 

 

NM

Changes in fair value on EBOs and loans held-for-investment

Advertisement

 

518

 

 

 

Advertisement

604

 

 

 

(439

Advertisement

)

 

 

1,556

 

Advertisement

 

 

(338

)

 

Advertisement

 

(86

)

 

(14

Advertisement

)

 

 

856

 

Advertisement

 

NM

Early pay-offs of capital leases

 

532

Advertisement

 

 

 

393

 

Advertisement

 

 

430

 

 

Advertisement

 

157

 

 

 

Advertisement

461

 

 

 

139

Advertisement

 

 

35

 

 

Advertisement

 

71

 

 

15

Advertisement

 

Miscellaneous

 

16,510

 

Advertisement

 

 

22,365

 

 

Advertisement

 

37,815

 

 

 

Advertisement

14,819

 

 

 

16,233

Advertisement

 

 

 

(5,855

)

Advertisement

 

(26

)

 

 

Advertisement

277

 

 

2

 

Advertisement

Total Other

 

24,137

 

 

Advertisement

 

29,282

 

 

 

Advertisement

42,331

 

 

 

24,779

Advertisement

 

 

 

20,888

 

Advertisement

 

 

(5,145

)

 

Advertisement

(18

)

 

 

3,249

Advertisement

 

 

16

 

Total Non-Interest Income

Advertisement

$

113,147

 

 

$

Advertisement

121,147

 

 

$

140,580

Advertisement

 

 

$

100,829

 

Advertisement

 

$

112,478

 

 

Advertisement

$

(8,000

)

 

(7)        %

Advertisement

 

$

669

 

 

Advertisement

1

%

 

Nine Months Ended

 

Advertisement

 

 

 

 

Sep 30,

Advertisement

 

Sep 30,

 

$

 

Advertisement

%

(Dollars in thousands)

2024

 

2023

Advertisement

 

Change

 

Change

Brokerage

Advertisement

$

17,283

 

 

$

Advertisement

13,296

 

 

$

3,987

Advertisement

 

 

30

%

Trust and asset management

Advertisement

 

90,169

 

 

 

Advertisement

84,036

 

 

 

6,133

Advertisement

 

 

7

 

Total wealth management

Advertisement

 

107,452

 

 

 

Advertisement

97,332

 

 

 

10,120

Advertisement

 

 

10

 

Mortgage banking

Advertisement

 

72,761

 

 

 

Advertisement

75,640

 

 

 

(2,879

Advertisement

)

 

(4

)

Service charges on deposit accounts

Advertisement

 

46,787

 

 

 

Advertisement

40,728

 

 

 

6,059

Advertisement

 

 

15

 

Gains (losses) on investment securities, net

Advertisement

 

233

 

 

 

Advertisement

(959

)

 

 

1,192

Advertisement

 

 

NM

Fees from covered call options

 

Advertisement

7,891

 

 

 

17,184

Advertisement

 

 

 

(9,293

)

Advertisement

 

(54

)

Trading gains, net

 

Advertisement

617

 

 

 

1,647

Advertisement

 

 

 

(1,030

)

Advertisement

 

(63

)

Operating lease income, net

 

Advertisement

43,383

 

 

 

39,136

Advertisement

 

 

 

4,247

 

Advertisement

 

11

 

Other:

 

Advertisement

 

 

 

 

 

Advertisement

 

Interest rate swap fees

 

9,134

 

Advertisement

 

 

8,230

 

 

Advertisement

 

904

 

 

11

Advertisement

 

BOLI

 

4,519

 

Advertisement

 

 

3,402

 

 

Advertisement

 

1,117

 

 

33

Advertisement

 

Administrative services

 

3,989

 

Advertisement

 

 

4,270

 

 

Advertisement

 

(281

)

 

(7

Advertisement

)

Foreign currency remeasurement losses

 

(620

)

Advertisement

 

 

(91

)

 

Advertisement

 

(529

)

 

NM

Advertisement

Changes in fair value on EBOs and loans held-for-investment

 

683

 

 

Advertisement

 

(35

)

 

 

Advertisement

718

 

 

NM

Early pay-offs of capital leases

Advertisement

 

1,355

 

 

 

Advertisement

1,027

 

 

 

328

Advertisement

 

 

32

 

Miscellaneous

Advertisement

 

76,690

 

 

 

Advertisement

45,766

 

 

 

30,924

Advertisement

 

 

68

 

Total Other

Advertisement

 

95,750

 

 

 

Advertisement

62,569

 

 

 

33,181

Advertisement

 

 

53

 

Total Non-Interest Income

Advertisement

$

374,874

 

 

$

Advertisement

333,277

 

 

$

41,597

Advertisement

 

 

12

%

NM – Not meaningful.
BOLI – Bank-owned life insurance.

Advertisement

TABLE 16: MORTGAGE BANKING

 

Three Months Ended

Nine Months Ended

(Dollars in thousands)

Advertisement

Sep 30,
2024

 

Jun 30,
2024

 

Mar 31,
2024

Advertisement

 

Dec 31,
2023

 

Sep 30,
2023

Sep 30,
2024

Advertisement

 

Sep 30,
2023

Originations:

 

 

Advertisement

 

 

 

 

 

Advertisement

 

 

 

 

 

Advertisement

Retail originations

$

527,408

 

 

Advertisement

$

544,394

 

 

$

Advertisement

331,504

 

 

$

315,637

Advertisement

 

 

$

408,761

 

Advertisement

$

1,403,306

 

 

$

Advertisement

1,071,786

 

Veterans First originations

 

239,369

Advertisement

 

 

 

177,792

 

Advertisement

 

 

144,109

 

 

Advertisement

 

123,564

 

 

 

Advertisement

163,856

 

 

561,270

 

Advertisement

 

 

451,218

 

Total originations for sale (A)

Advertisement

$

766,777

 

 

$

Advertisement

722,186

 

 

$

475,613

Advertisement

 

 

$

439,201

 

Advertisement

 

$

572,617

 

$

Advertisement

1,964,576

 

 

$

1,523,004

Advertisement

 

Originations for investment

 

218,984

 

Advertisement

 

 

275,331

 

 

Advertisement

 

169,246

 

 

 

Advertisement

124,974

 

 

 

137,622

Advertisement

 

 

663,561

 

 

Advertisement

 

453,597

 

Total originations

$

Advertisement

985,761

 

 

$

997,517

Advertisement

 

 

$

644,859

 

Advertisement

 

$

564,175

 

 

Advertisement

$

710,239

 

$

2,628,137

Advertisement

 

 

$

1,976,601

 

Advertisement

As a percentage of originations for sale:

 

 

 

 

Advertisement

 

 

 

 

 

Advertisement

 

 

 

Retail originations

 

Advertisement

69

%

 

 

75

Advertisement

%

 

 

70

%

Advertisement

 

 

72

%

 

Advertisement

 

71

%

 

71

Advertisement

%

 

 

70

%

Advertisement

Veterans First originations

 

31

 

 

Advertisement

 

25

 

 

 

Advertisement

30

 

 

 

28

Advertisement

 

 

 

29

 

Advertisement

 

29

 

 

 

Advertisement

30

 

Purchases

 

72

Advertisement

%

 

 

83

%

Advertisement

 

 

75

%

 

Advertisement

 

85

%

 

 

Advertisement

84

%

 

78

%

Advertisement

 

 

83

%

Refinances

Advertisement

 

28

 

 

 

Advertisement

17

 

 

 

25

Advertisement

 

 

 

15

 

Advertisement

 

 

16

 

 

Advertisement

22

 

 

 

17

Advertisement

 

Production Margin:

 

 

 

Advertisement

 

 

 

 

 

Advertisement

 

 

 

 

Production revenue (B)(1)

Advertisement

$

13,113

 

 

$

Advertisement

14,990

 

 

$

13,435

Advertisement

 

 

$

6,798

 

Advertisement

 

$

13,766

 

$

Advertisement

41,538

 

 

$

34,233

Advertisement

 

Total originations for sale (A)

$

766,777

 

Advertisement

 

$

722,186

 

 

Advertisement

$

475,613

 

 

$

Advertisement

439,201

 

 

$

572,617

Advertisement

 

$

1,964,576

 

 

Advertisement

$

1,523,004

 

Add: Current period end mandatory interest rate lock commitments to fund originations for sale(2)

 

Advertisement

272,072

 

 

 

222,738

Advertisement

 

 

 

207,775

 

Advertisement

 

 

119,624

 

 

Advertisement

 

150,713

 

 

272,072

Advertisement

 

 

 

150,713

 

Advertisement

Less: Prior period end mandatory interest rate lock commitments to fund originations for sale(2)

 

222,738

 

 

Advertisement

 

207,775

 

 

 

Advertisement

119,624

 

 

 

150,713

Advertisement

 

 

 

196,246

 

Advertisement

 

119,624

 

 

 

Advertisement

113,303

 

Total mortgage production volume (C)

$

816,111

Advertisement

 

 

$

737,149

 

Advertisement

 

$

563,764

 

 

Advertisement

$

408,112

 

 

$

Advertisement

527,084

 

$

2,117,024

 

Advertisement

 

$

1,560,414

 

Production margin (B / C)

Advertisement

 

1.61

%

 

 

Advertisement

2.03

%

 

 

2.38

Advertisement

%

 

 

1.67

%

Advertisement

 

 

2.61

%

 

Advertisement

1.96

%

 

 

2.19

Advertisement

%

Mortgage Servicing:

 

 

 

Advertisement

 

 

 

 

 

Advertisement

 

 

 

 

Loans serviced for others (D)

Advertisement

$

12,253,361

 

 

$

Advertisement

12,211,027

 

 

$

12,051,392

Advertisement

 

 

$

12,007,165

 

Advertisement

 

$

11,885,531

 

 

Advertisement

 

 

MSRs, at fair value (E)

 

186,308

Advertisement

 

 

 

204,610

 

Advertisement

 

 

201,044

 

 

Advertisement

 

192,456

 

 

 

Advertisement

210,524

 

 

 

 

Advertisement

Percentage of MSRs to loans serviced for others (E / D)

 

1.52

%

 

Advertisement

 

1.68

%

 

 

Advertisement

1.67

%

 

 

1.60

Advertisement

%

 

 

1.77

%

Advertisement

 

 

 

Servicing income

$

Advertisement

10,809

 

 

$

10,586

Advertisement

 

 

$

10,498

 

Advertisement

 

$

10,286

 

 

Advertisement

$

10,191

 

$

31,893

Advertisement

 

 

$

33,277

 

Advertisement

Components of MSR:

 

 

 

 

Advertisement

 

 

 

 

 

Advertisement

 

 

 

MSR – changes in fair value model assumptions

$

Advertisement

(17,331

)

 

$

877

Advertisement

 

 

$

7,595

 

Advertisement

 

$

(19,634

)

 

Advertisement

$

4,723

 

$

(8,859

Advertisement

)

 

$

485

 

Advertisement

Changes in fair value of derivative contract held as an economic hedge, net

 

6,892

 

 

Advertisement

 

(772

)

 

 

Advertisement

(2,577

)

 

 

3,541

Advertisement

 

 

 

(2,481

)

Advertisement

 

3,543

 

 

 

Advertisement

(2,261

)

MSR – current period capitalization

 

6,357

Advertisement

 

 

 

8,223

 

Advertisement

 

 

5,379

 

 

Advertisement

 

5,077

 

 

 

Advertisement

9,706

 

 

19,959

 

Advertisement

 

 

23,533

 

MSR – collection of expected cash flows – paydowns

Advertisement

 

(1,598

)

 

 

Advertisement

(1,504

)

 

 

(1,444

Advertisement

)

 

 

(1,572

)

Advertisement

 

 

(1,492

)

 

Advertisement

(4,546

)

 

 

(4,712

Advertisement

)

MSR – collection of expected cash flows – payoffs and repurchases

 

(5,730

)

Advertisement

 

 

(4,030

)

 

Advertisement

 

(2,942

)

 

 

Advertisement

(1,939

)

 

 

(3,105

Advertisement

)

 

(12,702

)

 

Advertisement

 

(8,837

)

MSR Activity

$

Advertisement

(11,410

)

 

$

2,794

Advertisement

 

 

$

6,011

 

Advertisement

 

$

(14,527

)

 

Advertisement

$

7,351

 

$

(2,605

Advertisement

)

 

$

8,208

 

Advertisement

Summary of Mortgage Banking Revenue:

 

 

 

 

Advertisement

 

 

 

 

 

Advertisement

 

 

 

Production revenue(1)

$

Advertisement

13,113

 

 

$

14,990

Advertisement

 

 

$

13,435

 

Advertisement

 

$

6,798

 

 

Advertisement

$

13,766

 

$

41,538

Advertisement

 

 

$

34,233

 

Advertisement

Servicing income

 

10,809

 

 

Advertisement

 

10,586

 

 

 

Advertisement

10,498

 

 

 

10,286

Advertisement

 

 

 

10,191

 

Advertisement

 

31,893

 

 

 

Advertisement

33,277

 

MSR activity

 

(11,410

Advertisement

)

 

 

2,794

 

Advertisement

 

 

6,011

 

 

Advertisement

 

(14,527

)

 

 

Advertisement

7,351

 

 

(2,605

)

Advertisement

 

 

8,208

 

Changes in fair value of early buy-out loans guaranteed by U.S. government agencies (HFS)

Advertisement

 

3,529

 

 

 

Advertisement

642

 

 

 

(2,190

Advertisement

)

 

 

4,856

 

Advertisement

 

 

(4,245

)

 

Advertisement

1,981

 

 

 

(440

Advertisement

)

Other revenue

 

(67

)

Advertisement

 

 

112

 

 

Advertisement

 

(91

)

 

 

Advertisement

20

 

 

 

332

Advertisement

 

 

(46

)

 

Advertisement

 

362

 

Total mortgage banking revenue

$

Advertisement

15,974

 

 

$

29,124

Advertisement

 

 

$

27,663

 

Advertisement

 

$

7,433

 

 

Advertisement

$

27,395

 

$

72,761

Advertisement

 

 

$

75,640

 

Advertisement

Changes in fair value on early buy-out loans guaranteed by U.S. government agencies (HFI)

$

518

 

 

Advertisement

$

604

 

 

$

Advertisement

(439

)

 

$

1,556

Advertisement

 

 

$

(338

)

Advertisement

$

683

 

 

$

Advertisement

(35

)

(1)   Production revenue represents revenue earned from the origination and subsequent sale of mortgages, including gains on loans sold and fees from originations, changes in other related financial instruments carried at fair value, processing and other related activities, and excludes servicing fees, changes in the fair value of servicing rights and changes to the mortgage recourse obligation and other non-production revenue.
(2)   Certain volume adjusted for the estimated pull-through rate of the loan, which represents the Company’s best estimate of the likelihood that a committed loan will ultimately fund.

TABLE 17: NON-INTEREST EXPENSE

 

Advertisement

Three Months Ended

 

Q3 2024 compared to
Q2 2024

 

Q3 2024 compared to
Q3 2023

Advertisement

 

Sep 30,

 

Jun 30,

 

Advertisement

Mar 31,

 

Dec 31,

 

Sep 30,

Advertisement

 

 

(Dollars in thousands)

2024

 

Advertisement

2024

 

2024

 

2023

Advertisement

 

2023

 

$ Change

 

Advertisement

% Change

 

$ Change

 

% Change

Advertisement

Salaries and employee benefits:

 

 

 

 

Advertisement

 

 

 

 

 

Advertisement

 

 

 

 

 

Advertisement

 

 

 

Salaries

$

Advertisement

118,971

 

 

$

113,860

Advertisement

 

 

$

112,172

 

Advertisement

$

111,484

 

 

$

Advertisement

111,303

 

$

5,111

 

Advertisement

 

4

%

 

$

Advertisement

7,668

 

 

7

%

Advertisement

Commissions and incentive compensation

 

57,575

 

 

Advertisement

 

52,151

 

 

 

Advertisement

51,001

 

 

48,974

 

Advertisement

 

 

48,817

 

 

Advertisement

5,424

 

 

10

 

Advertisement

 

 

8,758

 

 

Advertisement

18

 

Benefits

 

34,715

Advertisement

 

 

 

32,530

 

Advertisement

 

 

32,000

 

 

Advertisement

33,513

 

 

 

32,218

Advertisement

 

 

2,185

 

 

Advertisement

7

 

 

 

2,497

Advertisement

 

 

8

 

Total salaries and employee benefits

Advertisement

 

211,261

 

 

 

Advertisement

198,541

 

 

 

195,173

Advertisement

 

 

193,971

 

 

Advertisement

 

192,338

 

 

12,720

Advertisement

 

 

6

 

 

Advertisement

 

18,923

 

 

10

Advertisement

 

Software and equipment

 

31,574

 

Advertisement

 

 

29,231

 

 

Advertisement

 

27,731

 

 

27,779

Advertisement

 

 

 

25,951

 

Advertisement

 

2,343

 

 

8

Advertisement

 

 

 

5,623

 

Advertisement

 

22

 

Operating lease equipment

 

Advertisement

10,518

 

 

 

10,834

Advertisement

 

 

 

10,683

 

Advertisement

 

10,694

 

 

 

Advertisement

12,020

 

 

(316

)

Advertisement

 

(3

)

 

 

Advertisement

(1,502

)

 

(12

)

Advertisement

Occupancy, net

 

19,945

 

 

Advertisement

 

19,585

 

 

 

Advertisement

19,086

 

 

18,102

 

Advertisement

 

 

21,304

 

 

Advertisement

360

 

 

2

 

Advertisement

 

 

(1,359

)

 

Advertisement

(6

)

Data processing

 

9,984

Advertisement

 

 

 

9,503

 

Advertisement

 

 

9,292

 

 

Advertisement

8,892

 

 

 

10,773

Advertisement

 

 

481

 

 

Advertisement

5

 

 

 

(789

Advertisement

)

 

(7

)

Advertising and marketing

Advertisement

 

18,239

 

 

 

Advertisement

17,436

 

 

 

13,040

Advertisement

 

 

17,166

 

 

Advertisement

 

18,169

 

 

803

Advertisement

 

 

5

 

 

Advertisement

 

70

 

 

0

Advertisement

 

Professional fees

 

9,783

 

Advertisement

 

 

9,967

 

 

Advertisement

 

9,553

 

 

8,768

Advertisement

 

 

 

8,887

 

Advertisement

 

(184

)

 

(2

Advertisement

)

 

 

896

 

Advertisement

 

10

 

Amortization of other acquisition-related intangible assets

 

Advertisement

4,042

 

 

 

1,122

Advertisement

 

 

 

1,158

 

Advertisement

 

1,356

 

 

 

Advertisement

1,408

 

 

2,920

 

Advertisement

 

NM

 

 

2,634

Advertisement

 

 

NM

FDIC insurance

 

Advertisement

10,512

 

 

 

10,429

Advertisement

 

 

 

9,381

 

Advertisement

 

9,303

 

 

 

Advertisement

9,748

 

 

83

 

Advertisement

 

1

 

 

 

Advertisement

764

 

 

8

 

Advertisement

FDIC insurance – special assessment

 

 

 

Advertisement

 

 

 

 

Advertisement

5,156

 

 

34,374

 

Advertisement

 

 

 

 

Advertisement

 

 

NM

 

Advertisement

 

 

 

NM

Advertisement

OREO expense, net

 

(938

)

 

Advertisement

 

(259

)

 

 

Advertisement

392

 

 

(1,559

)

Advertisement

 

 

120

 

 

Advertisement

(679

)

 

NM

 

Advertisement

 

(1,058

)

 

NM

Advertisement

Other:

 

 

 

 

Advertisement

 

 

 

 

 

Advertisement

 

 

 

 

 

Advertisement

 

 

 

Lending expenses, net of deferred origination costs

 

Advertisement

4,995

 

 

 

5,335

Advertisement

 

 

 

5,078

 

Advertisement

 

5,330

 

 

 

Advertisement

4,777

 

 

(340

)

Advertisement

 

(6

)

 

 

Advertisement

218

 

 

5

 

Advertisement

Travel and entertainment

 

5,364

 

 

Advertisement

 

5,340

 

 

 

Advertisement

4,597

 

 

5,754

 

Advertisement

 

 

5,449

 

 

Advertisement

24

 

 

 

Advertisement

 

 

(85

)

 

Advertisement

(2

)

Miscellaneous

 

25,408

Advertisement

 

 

 

23,289

 

Advertisement

 

 

22,825

 

 

Advertisement

22,722

 

 

 

19,111

Advertisement

 

 

2,119

 

 

Advertisement

9

 

 

 

6,297

Advertisement

 

 

33

 

Total other

Advertisement

 

35,767

 

 

 

Advertisement

33,964

 

 

 

32,500

Advertisement

 

 

33,806

 

 

Advertisement

 

29,337

 

 

1,803

Advertisement

 

 

5

 

 

Advertisement

 

6,430

 

 

22

Advertisement

 

Total Non-Interest Expense

$

360,687

 

Advertisement

 

$

340,353

 

 

Advertisement

$

333,145

 

$

362,652

Advertisement

 

 

$

330,055

 

Advertisement

$

20,334

 

 

6

Advertisement

%

 

$

30,632

 

Advertisement

 

9

%

 

Nine Months Ended

Advertisement

 

 

 

 

 

Advertisement

Sep 30,

 

Sep 30,

 

$

Advertisement

 

%

(Dollars in thousands)

2024

 

Advertisement

2023

 

Change

 

Change

Advertisement

Salaries and employee benefits:

 

 

 

 

Advertisement

 

 

 

Salaries

$

Advertisement

345,003

 

 

$

327,328

Advertisement

 

$

17,675

 

 

Advertisement

5

%

Commissions and incentive compensation

 

160,727

Advertisement

 

 

 

133,127

 

Advertisement

 

27,600

 

 

21

Advertisement

 

Benefits

 

99,245

 

Advertisement

 

 

93,587

 

 

Advertisement

5,658

 

 

6

 

Advertisement

Total salaries and employee benefits

 

604,975

 

 

Advertisement

 

554,042

 

 

50,933

Advertisement

 

 

9

 

Software and equipment

Advertisement

 

88,536

 

 

 

Advertisement

76,853

 

 

11,683

 

Advertisement

 

15

 

Operating lease equipment

 

Advertisement

32,035

 

 

 

31,669

Advertisement

 

 

366

 

 

Advertisement

1

 

Occupancy, net

 

58,616

Advertisement

 

 

 

58,966

 

Advertisement

 

(350

)

 

(1

Advertisement

)

Data processing

 

28,779

 

Advertisement

 

 

29,908

 

 

Advertisement

(1,129

)

 

(4

)

Advertisement

Advertising and marketing

 

48,715

 

 

Advertisement

 

47,909

 

 

806

Advertisement

 

 

2

 

Professional fees

Advertisement

 

29,303

 

 

 

Advertisement

25,990

 

 

3,313

 

Advertisement

 

13

 

Amortization of other acquisition-related intangible assets

 

Advertisement

6,322

 

 

 

4,142

Advertisement

 

 

2,180

 

 

Advertisement

53

 

FDIC insurance

 

30,322

Advertisement

 

 

 

27,425

 

Advertisement

 

2,897

 

 

11

Advertisement

 

FDIC insurance – special assessment

 

5,156

 

Advertisement

 

 

 

 

Advertisement

5,156

 

 

NM

OREO expense, net

Advertisement

 

(805

)

 

 

Advertisement

31

 

 

(836

)

Advertisement

 

NM

Other:

 

 

Advertisement

 

 

 

 

 

Advertisement

Lending expenses, net of deferred origination costs

 

15,408

 

 

Advertisement

 

15,766

 

 

(358

Advertisement

)

 

(2

)

Travel and entertainment

Advertisement

 

15,301

 

 

 

Advertisement

15,440

 

 

(139

)

Advertisement

 

(1

)

Miscellaneous

 

Advertisement

71,522

 

 

 

61,706

Advertisement

 

 

9,816

 

 

Advertisement

16

 

Total other

 

102,231

Advertisement

 

 

 

92,912

 

Advertisement

 

9,319

 

 

10

Advertisement

 

Total Non-Interest Expense

$

1,034,185

 

Advertisement

 

$

949,847

 

$

Advertisement

84,338

 

 

9

%

Advertisement

NM – Not meaningful.

TABLE 18: SUPPLEMENTAL NON-GAAP FINANCIAL MEASURES/RATIOS

The accounting and reporting policies of Wintrust conform to generally accepted accounting principles (“GAAP”) in the United States and prevailing practices in the banking industry. However, certain non-GAAP performance measures and ratios are used by management to evaluate and measure the Company’s performance. These include taxable-equivalent net interest income (including its individual components), taxable-equivalent net interest margin (including its individual components), the taxable-equivalent efficiency ratio, tangible common equity ratio, tangible book value per common share, return on average tangible common equity, and pre-tax income, excluding provision for credit losses. Management believes that these measures and ratios provide users of the Company’s financial information a more meaningful view of the performance of the Company’s interest-earning assets and interest-bearing liabilities and of the Company’s operating efficiency. Other financial holding companies may define or calculate these measures and ratios differently.

Management reviews yields on certain asset categories and the net interest margin of the Company and its banking subsidiaries on a fully taxable-equivalent basis. In this non-GAAP presentation, net interest income is adjusted to reflect tax-exempt interest income on an equivalent before-tax basis using tax rates effective as of the end of the period. This measure ensures comparability of net interest income arising from both taxable and tax-exempt sources. Net interest income on a fully taxable-equivalent basis is also used in the calculation of the Company’s efficiency ratio. The efficiency ratio, which is calculated by dividing non-interest expense by total taxable-equivalent net revenue (less securities gains or losses), measures how much it costs to produce one dollar of revenue. Securities gains or losses are excluded from this calculation to better match revenue from daily operations to operational expenses. Management considers the tangible common equity ratio and tangible book value per common share as useful measurements of the Company’s equity. The Company references the return on average tangible common equity as a measurement of profitability. Management considers pre-tax income, excluding provision for credit losses, as a useful measurement of the Company’s core net income.

 

Advertisement

Three Months Ended

Nine Months Ended

 

Sep 30,

 

Advertisement

Jun 30,

 

Mar 31,

 

Dec 31,

Advertisement

 

Sep 30,

Sep 30,

 

Sep 30,

Advertisement

(Dollars and shares in thousands)

2024

 

2024

 

Advertisement

2024

 

2023

 

2023

Advertisement

2024

 

2023

Reconciliation of Non-GAAP Net Interest Margin and Efficiency Ratio:

 

Advertisement

 

 

(A) Interest Income (GAAP)

$

908,604

Advertisement

 

 

$

849,979

 

Advertisement

 

$

805,513

 

 

Advertisement

$

793,848

 

 

$

Advertisement

762,400

 

$

2,564,096

 

Advertisement

 

$

2,099,266

 

Taxable-equivalent adjustment:

Advertisement

 

 

 

 

 

Advertisement

 

 

 

 

 

Advertisement

 

 

– Loans

 

2,474

Advertisement

 

 

 

2,305

 

Advertisement

 

 

2,246

 

 

Advertisement

 

2,150

 

 

 

Advertisement

1,923

 

 

7,025

 

Advertisement

 

 

5,677

 

– Liquidity Management Assets

Advertisement

 

668

 

 

 

Advertisement

567

 

 

 

550

Advertisement

 

 

 

575

 

Advertisement

 

 

572

 

 

Advertisement

1,785

 

 

 

1,674

Advertisement

 

– Other Earning Assets

 

2

 

Advertisement

 

 

3

 

 

Advertisement

 

5

 

 

 

Advertisement

4

 

 

 

1

Advertisement

 

 

10

 

 

Advertisement

 

6

 

(B) Interest Income (non-GAAP)

$

Advertisement

911,748

 

 

$

852,854

Advertisement

 

 

$

808,314

 

Advertisement

 

$

796,577

 

 

Advertisement

$

764,896

 

$

2,572,916

Advertisement

 

 

$

2,106,623

 

Advertisement

(C) Interest Expense (GAAP)

 

406,021

 

 

Advertisement

 

379,369

 

 

 

Advertisement

341,319

 

 

 

323,874

Advertisement

 

 

 

300,042

 

Advertisement

 

1,126,709

 

 

 

Advertisement

731,376

 

(D) Net Interest Income (GAAP) (A minus C)

$

502,583

Advertisement

 

 

$

470,610

 

Advertisement

 

$

464,194

 

 

Advertisement

$

469,974

 

 

$

Advertisement

462,358

 

$

1,437,387

 

Advertisement

 

$

1,367,890

 

(E) Net Interest Income (non-GAAP) (B minus C)

Advertisement

$

505,727

 

 

$

Advertisement

473,485

 

 

$

466,995

Advertisement

 

 

$

472,703

 

Advertisement

 

$

464,854

 

$

Advertisement

1,446,207

 

 

$

1,375,247

Advertisement

 

Net interest margin (GAAP)

 

3.49

%

Advertisement

 

 

3.50

%

 

Advertisement

 

3.57

%

 

 

Advertisement

3.62

%

 

 

3.60

Advertisement

%

 

3.52

%

 

Advertisement

 

3.68

%

Net interest margin, fully taxable-equivalent (non-GAAP)

 

Advertisement

3.51

 

 

 

3.52

Advertisement

 

 

 

3.59

 

Advertisement

 

 

3.64

 

 

Advertisement

 

3.62

 

 

3.54

Advertisement

 

 

 

3.70

 

Advertisement

(F) Non-interest income

$

113,147

 

 

Advertisement

$

121,147

 

 

$

Advertisement

140,580

 

 

$

100,829

Advertisement

 

 

$

112,478

 

Advertisement

$

374,874

 

 

$

Advertisement

333,277

 

(G) (Losses) gains on investment securities, net

 

3,189

Advertisement

 

 

 

(4,282

)

Advertisement

 

 

1,326

 

 

Advertisement

 

2,484

 

 

 

Advertisement

(2,357

)

 

233

 

Advertisement

 

 

(959

)

(H) Non-interest expense

Advertisement

 

360,687

 

 

 

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340,353

 

 

 

333,145

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362,652

 

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330,055

 

 

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1,034,185

 

 

 

949,847

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Efficiency ratio (H/(D+F-G))

 

58.88

%

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57.10

%

 

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55.21

%

 

 

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63.81

%

 

 

57.18

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%

 

57.07

%

 

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55.80

%

Efficiency ratio (non-GAAP) (H/(E+F-G))

 

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58.58

 

 

 

56.83

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54.95

 

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63.51

 

 

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56.94

 

 

56.80

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55.56

 

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Three Months Ended

Nine Months Ended

 

Sep 30,

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Jun 30,

 

Mar 31,

 

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Dec 31,

 

Sep 30,

Sep 30,

 

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Sep 30,

(Dollars and shares in thousands)

2024

 

2024

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2024

 

2023

 

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2023

2024

 

2023

Reconciliation of Non-GAAP Tangible Common Equity Ratio:

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Total shareholders’ equity (GAAP)

$

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6,399,714

 

 

$

5,536,628

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$

5,436,400

 

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$

5,399,526

 

 

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$

5,015,613

 

 

 

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Less: Non-convertible preferred stock (GAAP)

 

(412,500

)

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(412,500

)

 

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(412,500

)

 

 

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(412,500

)

 

 

(412,500

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)

 

 

 

Less: Intangible assets (GAAP)

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(924,646

)

 

 

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(676,562

)

 

 

(677,911

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)

 

 

(679,561

)

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(680,353

)

 

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(I) Total tangible common shareholders’ equity (non-GAAP)

$

5,062,568

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$

4,447,566

 

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$

4,345,989

 

 

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$

4,307,465

 

 

$

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3,922,760

 

 

 

 

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(J) Total assets (GAAP)

$

63,788,424

 

 

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$

59,781,516

 

 

$

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57,576,933

 

 

$

56,259,934

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$

55,555,246

 

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Less: Intangible assets (GAAP)

 

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(924,646

)

 

 

(676,562

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)

 

 

(677,911

)

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(679,561

)

 

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(680,353

)

 

 

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(K) Total tangible assets (non-GAAP)

$

62,863,778

 

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$

59,104,954

 

 

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$

56,899,022

 

 

$

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55,580,373

 

 

$

54,874,893

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Common equity to assets ratio (GAAP) (L/J)

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9.4

%

 

 

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8.6

%

 

 

8.7

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%

 

 

8.9

%

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8.3

%

 

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Tangible common equity ratio (non-GAAP) (I/K)

 

8.1

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7.5

 

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7.6

 

 

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7.7

 

 

 

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7.1

 

 

 

 

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Reconciliation of Non-GAAP Tangible Book Value per Common Share:

 

 

 

Total shareholders’ equity

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$

6,399,714

 

 

$

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5,536,628

 

 

$

5,436,400

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$

5,399,526

 

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$

5,015,613

 

 

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Less: Preferred stock

 

(412,500

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)

 

 

(412,500

)

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(412,500

)

 

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(412,500

)

 

 

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(412,500

)

 

 

 

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(L) Total common equity

$

5,987,214

 

 

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$

5,124,128

 

 

$

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5,023,900

 

 

$

4,987,026

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$

4,603,113

 

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(M) Actual common shares outstanding

 

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66,482

 

 

 

61,760

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61,737

 

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61,244

 

 

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61,222

 

 

 

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Book value per common share (L/M)

$

90.06

 

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$

82.97

 

 

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$

81.38

 

 

$

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81.43

 

 

$

75.19

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Tangible book value per common share (non-GAAP) (I/M)

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76.15

 

 

 

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72.01

 

 

 

70.40

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70.33

 

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64.07

 

 

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Reconciliation of Non-GAAP Return on Average Tangible Common Equity:

 

 

 

(N) Net income applicable to common shares

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$

163,010

 

 

$

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145,397

 

 

$

180,303

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$

116,489

 

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$

157,207

 

$

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488,710

 

 

$

478,173

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Add: Intangible asset amortization

 

4,042

 

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1,122

 

 

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1,158

 

 

 

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1,356

 

 

 

1,408

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6,322

 

 

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4,142

 

Less: Tax effect of intangible asset amortization

 

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(1,087

)

 

 

(311

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)

 

 

(291

)

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(343

)

 

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(380

)

 

(1,682

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)

 

 

(1,102

)

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After-tax intangible asset amortization

$

2,955

 

 

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$

811

 

 

$

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867

 

 

$

1,013

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$

1,028

 

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$

4,640

 

 

$

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3,040

 

(O) Tangible net income applicable to common shares (non-GAAP)

$

165,965

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$

146,208

 

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$

181,170

 

 

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$

117,502

 

 

$

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158,235

 

$

493,350

 

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$

481,213

 

Total average shareholders’ equity

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$

5,990,429

 

 

$

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5,450,173

 

 

$

5,440,457

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$

5,066,196

 

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$

5,083,883

 

$

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5,628,346

 

 

$

5,008,648

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Less: Average preferred stock

 

(412,500

)

Advertisement

 

 

(412,500

)

 

Advertisement

 

(412,500

)

 

 

Advertisement

(412,500

)

 

 

(412,500

Advertisement

)

 

(412,500

)

 

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(412,500

)

(P) Total average common shareholders’ equity

$

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5,577,929

 

 

$

5,037,673

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$

5,027,957

 

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$

4,653,696

 

 

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$

4,671,383

 

$

5,215,846

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$

4,596,148

 

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Less: Average intangible assets

 

(833,574

)

 

Advertisement

 

(677,207

)

 

 

Advertisement

(678,731

)

 

 

(679,812

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)

 

 

(681,520

)

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(730,216

)

 

 

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(679,799

)

(Q) Total average tangible common shareholders’ equity (non-GAAP)

$

4,744,355

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$

4,360,466

 

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$

4,349,226

 

 

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$

3,973,884

 

 

$

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3,989,863

 

$

4,485,630

 

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$

3,916,349

 

Return on average common equity, annualized (N/P)

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11.63

%

 

 

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11.61

%

 

 

14.42

Advertisement

%

 

 

9.93

%

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13.35

%

 

Advertisement

12.52

%

 

 

13.91

Advertisement

%

Return on average tangible common equity, annualized (non-GAAP) (O/Q)

 

13.92

 

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13.49

 

 

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16.75

 

 

 

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11.73

 

 

 

15.73

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14.69

 

 

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16.43

 

 

 

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Reconciliation of Non-GAAP Pre-Tax, Pre-Provision Income:

 

 

 

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Income before taxes

$

232,709

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$

211,343

 

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$

249,956

 

 

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$

165,243

 

 

$

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224,858

 

$

694,008

 

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$

679,838

 

Add: Provision for credit losses

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22,334

 

 

 

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40,061

 

 

 

21,673

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42,908

 

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19,923

 

 

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84,068

 

 

 

71,482

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Pre-tax income, excluding provision for credit losses (non-GAAP)

$

255,043

 

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$

251,404

 

 

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$

271,629

 

 

$

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208,151

 

 

$

244,781

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$

778,076

 

 

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$

751,320

 

WINTRUST SUBSIDIARIES AND LOCATIONS

Wintrust is a financial holding company whose common stock is traded on the Nasdaq Global Select Market (Nasdaq: WTFC). Its 16 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., Town Bank, N.A., in Hartland, Wisconsin and Macatawa Bank in Holland, Michigan.

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In addition to the locations noted above, the banks also operate facilities in Illinois in Addison, Algonquin, Aurora, Bloomingdale, Bolingbrook, Buffalo Grove, Burbank, Cary, Clarendon Hills, Countryside, Crete, Darien, Deerfield, Des Plaines, Downers Grove, Elgin, Elk Grove Village, Elmhurst, Evanston, Evergreen Park, Frankfort, Geneva, Glen Ellyn, Glencoe, Glenview, Grayslake, Gurnee, Hanover Park, Hawthorn Woods, Highland Park, Highwood, Hoffman Estates, Homer Glen, Itasca, Joliet, Lake Bluff, Lake Villa, Lansing, Lemont, Lindenhurst, Lombard, Lynwood, Markham, Maywood, McHenry, Mokena, Mount Prospect, Mundelein, Naperville, Norridge, Northfield, Oak Lawn, Oak Park, Orland Park, Palatine, Park Ridge, Prospect Heights, Riverside, Rockford, Rolling Meadows, Round Lake Beach, Shorewood, Skokie, Spring Grove, Steger, Stone Park, Vernon Hills, Wauconda, Waukegan, Western Springs, Willowbrook, Wilmette, Winnetka and Wood Dale, and in Wisconsin in Burlington, Clinton, Delafield, Delavan, Elm Grove, Genoa City, Kenosha, Lake Geneva, Madison, Menomonee Falls, Milwaukee, Pewaukee, Racine, Wales, Walworth, Whitefish Bay and Wind Lake, and in Michigan in Allendale, Byron Center, Douglas, Grand Haven, Grand Rapids, Grandville, Hamilton, Hudsonville, Jenison, Rockford, Walker, Wyoming, and Zeeland, and in Florida in Bonita Springs and Naples, and in Indiana in Crown Point and Dyer.

Additionally, the Company operates various non-bank business units:

  • FIRST Insurance Funding and Wintrust Life Finance, each a division of Lake Forest Bank & Trust Company, N.A., serve commercial and life insurance loan customers, respectively, throughout the United States.

  • First Insurance Funding of Canada serves commercial insurance loan customers throughout Canada.

  • Tricom, Inc. of Milwaukee provides high-yielding, short-term accounts receivable financing and value-added out-sourced administrative services, such as data processing of payrolls, billing and cash management services, to temporary staffing service clients located throughout the United States.

  • Wintrust Mortgage, a division of Barrington Bank & Trust Company, N.A., engages primarily in the origination and purchase of residential mortgages for sale into the secondary market through origination offices located throughout the United States. Loans are also originated nationwide through relationships with wholesale and correspondent offices.

  • Wintrust Investments, LLC is a broker-dealer providing a full range of private client and brokerage services to clients and correspondent banks located primarily in the Midwest.

  • Great Lakes Advisors LLC provides money management services and advisory services to individual accounts.

  • Wintrust Private Trust Company, N.A., a trust subsidiary, allows Wintrust to service customers’ trust and investment needs at each banking location.

  • Wintrust Asset Finance offers direct leasing opportunities.

  • CDEC provides Qualified Intermediary services (as defined by U.S. Treasury regulations) for taxpayers seeking to structure tax-deferred like-kind exchanges under Internal Revenue Code Section 1031.

FORWARD-LOOKING STATEMENTS

This document contains forward-looking statements within the meaning of federal securities laws. Forward-looking information can be identified through the use of words such as “intend,” “plan,” “project,” “expect,” “anticipate,” “believe,” “estimate,” “contemplate,” “possible,” “will,” “may,” “should,” “would” and “could.” Forward-looking statements and information are not historical facts, are premised on many factors and assumptions, and represent only management’s expectations, estimates and projections regarding future events. Similarly, these statements are not guarantees of future performance and involve certain risks and uncertainties that are difficult to predict, and which may include, but are not limited to, those listed below and the Risk Factors discussed under Item 1A of the Company’s 2023 Annual Report on Form 10-K and in any of the Company’s subsequent SEC filings. The Company intends such forward-looking statements to be covered by the safe harbor provisions for forward-looking statements contained in the Private Securities Litigation Reform Act of 1995, and is including this statement for purposes of invoking these safe harbor provisions. Such forward-looking statements may be deemed to include, among other things, statements relating to the Company’s future financial performance, the performance of its loan portfolio, the expected amount of future credit reserves and charge-offs, delinquency trends, growth plans, regulatory developments, securities that the Company may offer from time to time, plans to form additional de novo banks or branch offices, and management’s long-term performance goals, as well as statements relating to the anticipated effects on the Company’s financial condition and results of operations from expected developments or events, the Company’s business and growth strategies, including future acquisitions of banks, specialty finance or wealth management businesses, internal growth and plans to form additional de novo banks or branch offices. Actual results could differ materially from those addressed in the forward-looking statements as a result of numerous factors, including the following:

  • economic conditions and events that affect the economy, housing prices, the job market and other factors that may adversely affect the Company’s liquidity and the performance of its loan portfolios, including an actual or threatened U.S. government debt default or rating downgrade, particularly in the markets in which it operates;

  • negative effects suffered by us or our customers resulting from changes in U.S. trade policies;

  • the extent of defaults and losses on the Company’s loan portfolio, which may require further increases in its allowance for credit losses;

  • estimates of fair value of certain of the Company’s assets and liabilities, which could change in value significantly from period to period;

  • the financial success and economic viability of the borrowers of our commercial loans;

  • commercial real estate market conditions in the Chicago metropolitan area and southern Wisconsin;

  • the extent of commercial and consumer delinquencies and declines in real estate values, which may require further increases in the Company’s allowance for credit losses;

  • inaccurate assumptions in our analytical and forecasting models used to manage our loan portfolio;

  • changes in the level and volatility of interest rates, the capital markets and other market indices that may affect, among other things, the Company’s liquidity and the value of its assets and liabilities;

  • the interest rate environment, including a prolonged period of low interest rates or rising interest rates, either broadly or for some types of instruments, which may affect the Company’s net interest income and net interest margin, and which could materially adversely affect the Company’s profitability;

  • competitive pressures in the financial services business which may affect the pricing of the Company’s loan and deposit products as well as its services (including wealth management services), which may result in loss of market share and reduced income from deposits, loans, advisory fees and income from other products;

  • failure to identify and complete favorable acquisitions in the future or unexpected losses, difficulties or developments related to the Company’s recent or future acquisitions;

  • unexpected difficulties and losses related to FDIC-assisted acquisitions;

  • harm to the Company’s reputation;

  • any negative perception of the Company’s financial strength;

  • ability of the Company to raise additional capital on acceptable terms when needed;

  • disruption in capital markets, which may lower fair values for the Company’s investment portfolio;

  • ability of the Company to use technology to provide products and services that will satisfy customer demands and create efficiencies in operations and to manage risks associated therewith;

  • failure or breaches of our security systems or infrastructure, or those of third parties;

  • security breaches, including denial of service attacks, hacking, social engineering attacks, malware intrusion and similar events or data corruption attempts and identity theft;

  • adverse effects on our information technology systems, or those of third parties, resulting from failures, human error or cyberattacks (including ransomware);

  • adverse effects of failures by our vendors to provide agreed upon services in the manner and at the cost agreed, particularly our information technology vendors;

  • increased costs as a result of protecting our customers from the impact of stolen debit card information;

  • accuracy and completeness of information the Company receives about customers and counterparties to make credit decisions;

  • ability of the Company to attract and retain senior management experienced in the banking and financial services industries;

  • environmental liability risk associated with lending activities;

  • the impact of any claims or legal actions to which the Company is subject, including any effect on our reputation;

  • losses incurred in connection with repurchases and indemnification payments related to mortgages and increases in reserves associated therewith;

  • the loss of customers as a result of technological changes allowing consumers to complete their financial transactions without the use of a bank;

  • the soundness of other financial institutions and the impact of recent failures of financial institutions, including broader financial institution liquidity risk and concerns;

  • the expenses and delayed returns inherent in opening new branches and de novo banks;

  • liabilities, potential customer loss or reputational harm related to closings of existing branches;

  • examinations and challenges by tax authorities, and any unanticipated impact of the Tax Act;

  • changes in accounting standards, rules and interpretations, and the impact on the Company’s financial statements;

  • the ability of the Company to receive dividends from its subsidiaries;

  • the impact of the Company’s transition from LIBOR to an alternative benchmark rate for current and future transactions;

  • a decrease in the Company’s capital ratios, including as a result of declines in the value of its loan portfolios, or otherwise;

  • legislative or regulatory changes, particularly changes in regulation of financial services companies and/or the products and services offered by financial services companies;

  • changes in laws, regulations, rules, standards and contractual obligations regarding data privacy and cybersecurity;

  • a lowering of our credit rating;

  • changes in U.S. monetary policy and changes to the Federal Reserve’s balance sheet, including changes in response to persistent inflation or otherwise;

  • regulatory restrictions upon our ability to market our products to consumers and limitations on our ability to profitably operate our mortgage business;

  • increased costs of compliance, heightened regulatory capital requirements and other risks associated with changes in regulation and the regulatory environment;

  • the impact of heightened capital requirements;

  • increases in the Company’s FDIC insurance premiums, or the collection of special assessments by the FDIC;

  • delinquencies or fraud with respect to the Company’s premium finance business;

  • credit downgrades among commercial and life insurance providers that could negatively affect the value of collateral securing the Company’s premium finance loans;

  • the Company’s ability to comply with covenants under its credit facility;

  • fluctuations in the stock market, which may have an adverse impact on the Company’s wealth management business and brokerage operation; 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.

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.

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CONFERENCE CALL, WEBCAST AND REPLAY

The Company will hold a conference call on Tuesday, October 22, 2024 at 10:00 a.m. (CDT) regarding third quarter and year-to-date 2024 earnings results. Individuals interested in participating in the call by addressing questions to management should register for the call to receive the dial-in numbers and unique PIN at the Conference Call Link included within the Company’s press release dated September 30, 2024 available at the Investor Relations, Investor News and Events, Press Releases link on its website at https://www.wintrust.com. A separate simultaneous audio-only webcast link is included within the press release referenced above. Registration for and a replay of the audio-only webcast with an accompanying slide presentation will be available at https://www.wintrust.com, Investor Relations, Investor News and Events, Presentations & Conference Calls. The text of the third quarter and year-to-date 2024 earnings press release will also be available on the home page of the Company’s website at https://www.wintrust.com and at the Investor Relations, Investor News and Events, Press Releases link on its website.

FOR MORE INFORMATION CONTACT:
Timothy S. Crane, President & Chief Executive Officer
David A. Dykstra, Vice Chairman & Chief Operating Officer
(847) 939-9000
Web site address: www.wintrust.com

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