ROSEMONT, Ill., Jan. 18, 2023 (GLOBE NEWSWIRE) -- Wintrust Financial Corporation (“Wintrust”, “the Company”, “we” or “our”) (Nasdaq: WTFC) announced net income of $144.8 million or $2.23 per diluted common share for the fourth quarter of 2022, an increase in diluted earnings per common share of 1% compared to the third quarter of 2022. The Company had record annual net income of $509.7 million or $8.02 per diluted common share for the year ended December 31, 2022 as compared to net income of $466.2 million or $7.58 per diluted common share for the same period of 2021. Pre-tax, pre-provision income (non-GAAP) totaled a record $779.1 million for the year ended December 31, 2022, up 35% as compared to $578.5 million for the same period of 2021.
Edward J. Wehmer, Founder and Chief Executive Officer, commented, “Wintrust finished the year with great momentum as our fourth quarter results were highlighted by strong net income and record quarterly pre-tax, pre-provision income. Net interest income and net interest margin expanded meaningfully and our loan portfolio continued to grow while exhibiting low levels of net charge-offs. The fourth quarter caps an extraordinary year for Wintrust, and we believe that we are well-positioned to reach even higher levels of financial performance in 2023."
Highlights of the fourth quarter of 2022:
Comparative information to the third quarter of 2022, unless otherwise noted
- Net interest income increased by $55.4 million or 14% as compared to the third quarter of 2022 primarily due to improvement in net interest margin and loan growth.
- Net interest margin, on a GAAP basis, increased by 37 basis points to 3.71% for the fourth quarter of 2022 as the upward repricing of earning assets outpaced increases in deposit costs. Net interest margin, on a fully taxable equivalent basis (non-GAAP) increased by 38 basis points to 3.73%.
- Total loans increased by $1.0 billion, or 11% on an annualized basis. In addition, total loans as of December 31, 2022 were $630 million higher than average total loans in the fourth quarter of 2022 which is expected to benefit future quarters.
- Total assets increased by $567 million totaling $52.9 billion as of December 31, 2022 and total deposits increased by $105 million.
- Recorded a provision for credit losses of $47.6 million in the fourth quarter of 2022 primarily related to a moderate deterioration in macroeconomic factors coupled with strong loan growth. This compares to a provision for credit losses of $6.4 million in the third quarter of 2022.
- Net charge-offs totaled $5.1 million or five basis points of average total loans on an annualized basis in the fourth quarter of 2022 as compared to $3.2 million or three basis points of average total loans on an annualized basis in the third quarter of 2022.
- Non-performing loans were essentially unchanged at 0.26% of total loans, as of December 31, 2022. See “Asset Quality” section for more information.
- Book value per common share increased by $2.56 to $72.12 as of December 31, 2022. Tangible book value per common share (non-GAAP) increased to $61.00 as of December 31, 2022 as compared to $58.42 as of September 30, 2022.
Other items of note from the fourth quarter of 2022
- Net losses on investment securities totaled $6.7 million in the fourth quarter of 2022 related to changes in the value of equity securities as compared to net losses of $3.1 million in the third quarter of 2022.
- The effective tax rate decreased as the Company recorded an approximately $1.7 million benefit to income tax expense related to earnings at its Canadian subsidiary. See “Income Taxes” section for more information.
- Recorded $838,000 in occupancy expense related to an unrealized loss associated with the anticipated sale of a branch facility.
- Recorded $846,000 in operating lease equipment expense related to the impairment of an operating lease asset.
- The Company recorded net negative fair value adjustments of $702,000 in the fourth quarter of 2022 related to fair value changes in certain mortgage assets, see “Non-Interest Income” section for more information.
Mr. Wehmer continued, "The Company experienced robust loan growth as loans increased by $1.0 billion, or 11% on an annualized basis, in the fourth quarter of 2022. The loan growth was spread across all of our material loan portfolios as we experienced growth in commercial, commercial real estate, commercial insurance premium finance receivables and life insurance premium finance receivables. We remain prudent in our review of credit prospects ensuring our loan growth stays within our conservative credit standards. Loan growth in the fourth quarter of 2022 outpaced deposit growth which resulted in our loans to deposits ratio ending the quarter at 91.4%. Strategically growing deposits is among our most important objectives in 2023 and we believe we are well positioned to accomplish that without compromising our net interest margin guidance."
Mr. Wehmer commented, "Net interest income increased by $55.4 million in the fourth quarter of 2022 primarily due to improvement in net interest margin as well as an increase in earning assets. Net interest margin, on a fully taxable equivalent basis (non-GAAP), increased by 38 basis points as the upward repricing of earning assets outpaced deposit rate changes. We expect that trend to continue and believe, subject to no material change in the consensus projection of interest rates as of this release date, that our net interest margin should approach 4.00% during the first quarter of 2023. While Wintrust benefited significantly from being asset sensitive to interest rates in 2022, we acknowledge the uncertainty in projected interest rates and are repositioning our balance sheet to reduce our interest rate sensitivity. We expect to continue this strategy, including the use of derivative instruments, in order to mitigate potential negative impacts to our net interest margin in a declining interest rate environment.”
Commenting on credit quality, Mr. Wehmer stated, "The allowance for credit losses totaled $357.9 million as of December 31, 2022, an increase of $42.6 million as compared to $315.3 million as of September 30, 2022. The $42.6 million increase in reserves consisted of a $32.2 million increase related to a moderate deterioration in macroeconomic factors and a $10.4 million increase related to portfolio changes in the fourth quarter of 2022. Meanwhile, credit metrics related to current loan performance remained relatively stable. Non-performing loans totaled $100.7 million and comprised only 0.26% of total loans as of December 31, 2022, essentially unchanged from levels as of September 30, 2022. Net charge-offs totaled $5.1 million or five basis points of average total loans on an annualized basis in the fourth quarter of 2022 as compared to $3.2 million or three basis points of average total loans on an annualized basis in the third quarter of 2022. The allowance for credit losses on our core loan portfolio as of December 31, 2022 is approximately 1.42% of the outstanding balance. We believe that the Company’s reserves remain appropriate and we remain diligent in our review of credit."
Mr. Wehmer concluded, “Our fourth quarter of 2022 results continued to demonstrate the multi-faceted nature of our business model which we believe uniquely positions us to be successful. We remain an asset driven organization, focused on prudently growing our loan portfolio. We are confident we can raise funding to support asset growth and drive further net interest income expansion. We are closely watching our expenses and believe our efficiency ratio will continue to improve. We are opportunistically evaluating the acquisition market for both banks and business lines of various sizes and are excited about our recently announced and pending wealth management acquisition. Of course, we remain diligent in our consideration of acquisition targets and intend to be prudent in our decision making, always seeking to minimize tangible book value dilution. We are very proud that Wintrust’s tangible book value per common share has increased every year since we became a public company in 1996 and you can be assured of our best efforts to maintain that trend in 2023 and beyond.”
The graphs below illustrate certain financial highlights of the fourth quarter of 2022 as well as historical financial performance. See “Supplemental Non-GAAP Financial Measures/Ratios” at Table 17 for additional information with respect to non-GAAP financial measures/ratios, including the reconciliations to the corresponding GAAP financial measures/ratios.
Graphs available at the following link:
http://ml.globenewswire.com/Resource/Download/b70f58b8-5524-4ca3-8936-f89104accc4a
SUMMARY OF RESULTS:
BALANCE SHEET
Total loans increased by $1.0 billion as core loans increased by $794 million and niche loans increased by $250 million as compared to the third quarter of 2022. See Table 1 for more information. During the fourth quarter of 2022, the Company increased its investment portfolio by approximately $1.5 billion. However, certain securities were called by option holders on December 31, 2022 which resulted in the recognition of a trade date receivable of $922 million as of December 31, 2022. In January 2023, the Company reinvested the trade date receivable proceeds by purchasing a similar amount of investment securities.
Total liabilities increased $408 million in the fourth quarter of 2022 as compared to the third quarter of 2022 resulting primarily from a $136 million increase in notes payable and a $105 million increase in total deposits. The Company's loans to deposits ratio ended the quarter at 91.4%. Management believes in substantially funding the Company's balance sheet with core deposits and utilizes brokered or wholesale funding sources on a limited basis to manage its liquidity position as well as for interest rate risk management purposes.
For more information regarding changes in the Company’s balance sheet, see Consolidated Statements of Condition and Table 1 through Table 3 in this report.
NET INTEREST INCOME
For the fourth quarter of 2022, net interest income totaled $456.8 million, an increase of $55.4 million as compared to the third quarter of 2022. The $55.4 million increase in net interest income in the fourth quarter of 2022 compared to the third quarter of 2022 was primarily due to robust loan growth and continued expansion of net interest margin.
Net interest margin was 3.71% (3.73% on a fully taxable-equivalent basis, non-GAAP) during the fourth quarter of 2022 compared to 3.34% (3.35% on a fully taxable-equivalent basis, non-GAAP) during the third quarter of 2022. The net interest margin increase as compared to the third quarter of 2022 was due to an 84 basis point increase in yield on earning assets and a 22 basis point increase in the net free funds contribution. These improvements were partially offset by a 68 basis point increase in the rate paid on interest-bearing liabilities. The 84 basis point increase in the yield on earning assets in the fourth quarter of 2022 as compared to the third quarter of 2022 was primarily due to an 87 basis point expansion on loan yields and a higher liquidity management asset yield as the Company earned higher yields on interest-bearing deposits with banks and added investment securities at higher current market rates. The 68 basis point increase in the rate paid on interest-bearing liabilities in the fourth quarter of 2022 as compared to the third quarter of 2022 is primarily due to a 66 basis point increase in the rate paid on interest-bearing deposits primarily related to the increasing rate environment.
For more information regarding net interest income, see Table 4 through Table 8 in this report.
ASSET QUALITY
The allowance for credit losses totaled $357.9 million as of December 31, 2022, an increase of $42.6 million as compared to $315.3 million as of September 30, 2022. The $42.6 million increase in reserves consisted of a $32.2 million increase related to a moderate deterioration in macroeconomic factors and a $10.4 million increase related to portfolio changes in the fourth quarter of 2022. A provision for credit losses totaling $47.6 million was recorded for the fourth quarter of 2022 as compared to $6.4 million recorded in the third quarter of 2022. For more information regarding the provision for credit losses, see Table 11 in this report.
Management believes the allowance for credit losses is appropriate to account for expected credit losses. The Current Expected Credit Losses (“CECL”) accounting standard requires the Company to estimate expected credit losses over the life of the Company’s financial assets as of the reporting date. There can be no assurances, however, that future losses will not significantly exceed the amounts provided for, thereby affecting future results of operations. A summary of the allowance for credit losses calculated for the loan components in each portfolio as of December 31, 2022, September 30, 2022, and June 30, 2022 is shown on Table 12 of this report.
Net charge-offs totaled $5.1 million in the fourth quarter of 2022, as compared to $3.2 million of net charge-offs in the third quarter of 2022. Net charge-offs as a percentage of average total loans were reported as five basis points in the fourth quarter of 2022 on an annualized basis compared to three basis points on an annualized basis in the third quarter of 2022. For more information regarding net charge-offs, see Table 10 in this report.
The Company’s delinquency rates remain low and manageable. For more information regarding past due loans, see Table 13 in this report.
The ratio of non-performing assets to total assets was 0.21% as of December 31, 2022, compared to 0.20% at September 30, 2022. Non-performing assets totaled $110.6 million at December 31, 2022, compared to $104.3 million at September 30, 2022. Non-performing loans remained relatively flat totaling $100.7 million, or 0.26% of total loans, at December 31, 2022 compared to $97.6 million, or 0.26% of total loans, at September 30, 2022. For more information regarding non-performing assets, see Table 14 in this report.
NON-INTEREST INCOME
Wealth management revenue decreased $2.4 million in the fourth quarter of 2022 as compared to the third quarter of 2022 primarily related to lower fees associated with our tax-deferred like-kind exchange business. Wealth management revenue is comprised of the trust and asset management revenue of The Chicago Trust Company and Great Lakes Advisors, the brokerage commissions, managed money fees and insurance product commissions at Wintrust Investments and fees from tax-deferred like-kind exchange services provided by the Chicago Deferred Exchange Company.
Mortgage banking revenue decreased by $9.8 million in the fourth quarter of 2022 as compared to the third quarter of 2022 primarily due to lower production revenue as a result of declining mortgage origination volume in the recent rising rate environment as well as lower production margins. The Company recorded net negative fair value adjustments of $702,000 in the fourth quarter of 2022 related to fair value changes in certain mortgage assets. This included a $2.1 million decrease in the value of mortgage servicing rights related to changes in fair value model assumptions net of economic hedges and a positive $1.4 million valuation related adjustment on the Company’s held-for-sale portfolio of early buy-out exercised loans guaranteed by U.S. government agencies which are held at fair value. The Company intends to monitor the relationship of these assets and will seek to minimize the earnings impact of fair value changes in future quarters.
Net losses on investment securities totaled $6.7 million in the fourth quarter of 2022 related to changes in the value of equity securities as compared to net losses of $3.1 million in the third quarter of 2022.
Fees from covered call options increased $6.6 million in the fourth quarter of 2022 as compared to the third quarter of 2022. The Company has typically written call options with terms of less than three months against certain U.S. Treasury and agency securities held in its portfolio for liquidity and other purposes. Management has entered into these transactions with the goal of economically hedging security positions and enhancing its overall return on its investment portfolio. These option transactions are designed to mitigate overall interest rate risk and do not qualify as hedges pursuant to accounting guidance.
For more information regarding non-interest income, see Table 15 in this report.
NON-INTEREST EXPENSE
Salaries and employee benefits expense increased by $4.2 million in the fourth quarter of 2022 as compared to the third quarter of 2022. The $4.2 million increase is primarily related to higher incentive compensation expense related to the Company's strong 2022 financial performance, increased employee insurance costs and higher levels of deferred compensation expense, partially offset by lower commissions expense primarily related to lower mortgage production volume.
Advertising and marketing expenses in the fourth quarter of 2022 totaled $14.3 million, which is a $2.3 million decrease as compared to the third quarter of 2022 primarily due to a decrease in sports sponsorships. Marketing costs are incurred to promote the Company's brand, commercial banking capabilities and the Company's various products, to attract loans and deposits and to announce new branch openings as well as the expansion of the Company's non-bank businesses. The level of marketing expenditures depends on the timing of sponsorship programs utilized which are determined based on the market area, targeted audience, competition and various other factors.
Miscellaneous expense increased by $4.8 million in the fourth quarter of 2022 as compared to the third quarter of 2022 which includes a $1.1 million increase in charitable donations. In addition, miscellaneous expense includes ATM expenses, correspondent bank charges, directors fees, telephone, postage, corporate insurance, dues and subscriptions, problem loan expenses and other miscellaneous operational losses and costs.
For more information regarding non-interest expense, see Table 16 in this report.
INCOME TAXES
The Company recorded income tax expense of $50.4 million in the fourth quarter of 2022 compared to $57.1 million in the third quarter of 2022. The effective tax rates were 25.80% in the fourth quarter of 2022 compared to 28.53% in the third quarter of 2022. Primarily as a result of fluctuations in currency rates, in the fourth quarter of 2022, the Company reversed approximately $1.7 million of the $2.0 million of tax expense related to GILTI (“Global Intangible Low-taxed Income”) recorded in the third quarter of 2022. The GILTI tax is a U.S. minimum tax on global profits.
BUSINESS UNIT SUMMARY
Community Banking
Through its community banking unit, the Company provides banking and financial services primarily to individuals, small to mid-sized businesses, local governmental units and institutional clients residing primarily in the local areas the Company services. In the fourth quarter of 2022, this unit expanded its loan portfolio. The segment’s net interest income increased in the fourth quarter of 2022 as compared to the third quarter of 2022 due to loan growth and an increased net interest margin.
Mortgage banking revenue was $17.4 million for the fourth quarter of 2022, a decrease of $9.8 million as compared to the third quarter of 2022, primarily due to lower production revenue as a result of declining mortgage origination volume in the current rising rate environment as well as lower production margins. Service charges on deposit accounts totaled $13.1 million in the fourth quarter of 2022, a decrease of $1.3 million as compared to the third quarter of 2022 primarily due to lower fees associated with commercial account activity. The Company’s gross commercial and commercial real estate loan pipelines remained robust as of December 31, 2022 indicating momentum for expected continued loan growth in the first quarter of 2023.
Specialty Finance
Through its specialty finance unit, the Company offers financing of insurance premiums for businesses and individuals, equipment financing through structured loans and lease products to customers in a variety of industries, accounts receivable financing and value-added, out-sourced administrative services and other services. Originations within the insurance premium financing receivables portfolio were $4.0 billion during the fourth quarter of 2022 and average balances increased by $396.1 million as compared to the third quarter of 2022. The Company’s leasing portfolio balance increased in the fourth quarter of 2022, with its portfolio of assets, including capital leases, loans and equipment on operating leases, totaling $3.0 billion as of December 31, 2022 as compared to $2.7 billion as of September 30, 2022. Revenues from the Company’s out-sourced administrative services business were $1.7 million in the fourth quarter of 2022, an increase of $203,000 from the third quarter of 2022.
Wealth Management
Through four separate subsidiaries within its wealth management unit, the Company offers a full range of wealth management services, including trust and investment services, tax-deferred like-kind exchange services, asset management, securities brokerage services and 401(k) and retirement plan services. Wealth management revenue totaled $30.7 million in the fourth quarter of 2022, a decrease of $2.4 million compared to the third quarter of 2022. The decline in wealth management revenue in the fourth quarter of 2022 was primarily related to lower fees associated with our tax-deferred like-kind exchange business. At December 31, 2022, the Company’s wealth management subsidiaries had approximately $34.4 billion of assets under administration, which included $7.4 billion of assets owned by the Company and its subsidiary banks, representing an increase from the $32.8 billion of assets under administration at September 30, 2022.
ITEMS IMPACTING COMPARATIVE FINANCIAL RESULTS
Common Stock Offering
In June 2022, the Company sold through a public offering a total of 3,450,000 shares of its common stock. Net proceeds to the Company totaled approximately $285.7 million, net of estimated issuance costs.
Insurance Agency Loan Portfolio
On November 15, 2021, the Company completed its acquisition of certain assets from The Allstate Corporation (“Allstate”). Through this business combination, the Company acquired approximately $581.6 million of loans, net of allowance for credit losses measured on the acquisition date. The loan portfolio was comprised of approximately 1,800 loans to Allstate agents nationally. In addition to acquiring the loans, the Company became the national preferred provider of loans to Allstate agents. In connection with the loan acquisition, a team of Allstate agency lending specialists joined the Company, to augment and expand Wintrust’s existing insurance agency finance business. As the transaction was determined to be a business combination, the Company recorded goodwill of approximately $9.3 million on the purchase.
WINTRUST FINANCIAL CORPORATION
Key Operating Measures
Wintrust’s key operating measures and growth rates for the fourth quarter of 2022, as compared to the third quarter of 2022 (sequential quarter) and fourth quarter of 2021 (linked quarter), are shown in the table below:
| % or(1) basis point (bp) change from 3rd Quarter 2022 | % or basis point (bp) change from 4th Quarter 2021 | |||||||||||||||||
| Three Months Ended | ||||||||||||||||||
| (Dollars in thousands, except per share data) | Dec 31, 2022 | Sep 30, 2022 | Dec 31, 2021 | |||||||||||||||
| Net income | $ | 144,817 | $ | 142,961 | $ | 98,757 | 1 | % | 47 | % | ||||||||
| Pre-tax income, excluding provision for credit losses (non-GAAP)(2) | 242,819 | 206,461 | 146,344 | 18 | 66 | |||||||||||||
| Net income per common share – diluted | 2.23 | 2.21 | 1.58 | 1 | 41 | |||||||||||||
| Cash dividends declared per common share | 0.34 | 0.34 | 0.31 | — | 10 | |||||||||||||
| Net revenue(3) | 550,655 | 502,930 | 429,743 | 9 | 28 | |||||||||||||
| Net interest income | 456,816 | 401,448 | 295,976 | 14 | 54 | |||||||||||||
| Net interest margin | 3.71 | % | 3.34 | % | 2.54 | % | 37 | bps | 117 | bps | ||||||||
| Net interest margin – fully taxable-equivalent (non-GAAP)(2) | 3.73 | 3.35 | 2.55 | 38 | 118 | |||||||||||||
| Net overhead ratio(4) | 1.63 | 1.53 | 1.21 | 10 | 42 | |||||||||||||
| Return on average assets | 1.10 | 1.12 | 0.80 | (2 | ) | 30 | ||||||||||||
| Return on average common equity | 12.72 | 12.31 | 9.05 | 41 | 367 | |||||||||||||
| Return on average tangible common equity (non-GAAP)(2) | 15.21 | 14.68 | 11.04 | 53 | 417 | |||||||||||||
| At end of period | ||||||||||||||||||
| Total assets | $ | 52,949,649 | $ | 52,382,939 | $ | 50,142,143 | 4 | % | 6 | % | ||||||||
| Total loans(5) | 39,196,485 | 38,167,613 | 34,789,104 | 11 | 13 | |||||||||||||
| Total deposits | 42,902,544 | 42,797,191 | 42,095,585 | 1 | 2 | |||||||||||||
| Total shareholders’ equity | 4,796,838 | 4,637,980 | 4,498,688 | 14 | 7 | |||||||||||||
(1) Period-end balance sheet percentage changes are annualized.
(2) See Table 17: Supplemental Non-GAAP Financial Measures/Ratios for additional information on this performance measure/ratio.
(3) Net revenue is net interest income plus non-interest income.
(4) The net overhead ratio is calculated by netting total non-interest expense and total non-interest income, annualizing this amount, and dividing by that period’s average total assets. A lower ratio indicates a higher degree of efficiency.
(5) Excludes mortgage loans held-for-sale.
Certain returns, yields, performance ratios, or quarterly growth rates are “annualized” in this presentation to represent an annual time period. This is done for analytical purposes to better discern, for decision-making purposes, underlying performance trends when compared to full-year or year-over-year amounts. For example, a 5% growth rate for a quarter would represent an annualized 20% growth rate. Additional supplemental financial information showing quarterly trends can be found on the Company’s website at www.wintrust.com by choosing “Financial Reports” under the “Investor Relations” heading, and then choosing “Financial Highlights.”
WINTRUST FINANCIAL CORPORATION
Selected Financial Highlights
| Three Months Ended | Years Ended | ||||||||||||||||||||||||||
| (Dollars in thousands, except per share data) | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Dec 31, 2022 | Dec 31, 2021 | ||||||||||||||||||||
| Selected Financial Condition Data (at end of period): | |||||||||||||||||||||||||||
| Total assets | $ | 52,949,649 | $ | 52,382,939 | $ | 50,969,332 | $ | 50,250,661 | $ | 50,142,143 | |||||||||||||||||
| Total loans(1) | 39,196,485 | 38,167,613 | 37,053,103 | 35,280,547 | 34,789,104 | ||||||||||||||||||||||
| Total deposits | 42,902,544 | 42,797,191 | 42,593,326 | 42,219,322 | 42,095,585 | ||||||||||||||||||||||
| Total shareholders’ equity | 4,796,838 | 4,637,980 | 4,727,623 | 4,492,256 | 4,498,688 | ||||||||||||||||||||||
| Selected Statements of Income Data: | |||||||||||||||||||||||||||
| Net interest income | $ | 456,816 | $ | 401,448 | $ | 337,804 | $ | 299,294 | $ | 295,976 | $ | 1,495,362 | $ | 1,124,957 | |||||||||||||
| Net revenue(2) | 550,655 | 502,930 | 440,746 | 462,084 | 429,743 | 1,956,415 | 1,711,077 | ||||||||||||||||||||
| Net income | 144,817 | 142,961 | 94,513 | 127,391 | 98,757 | 509,682 | 466,151 | ||||||||||||||||||||
| Pre-tax income, excluding provision for credit losses (non-GAAP)(3) | 242,819 | 206,461 | 152,078 | 177,786 | 146,344 | 779,144 | 578,533 | ||||||||||||||||||||
| Net income per common share – Basic | 2.27 | 2.24 | 1.51 | 2.11 | 1.61 | 8.14 | 7.69 | ||||||||||||||||||||
| Net income per common share – Diluted | 2.23 | 2.21 | 1.49 | 2.07 | 1.58 | 8.02 | 7.58 | ||||||||||||||||||||
| Cash dividends declared per common share | 0.34 | 0.34 | 0.34 | 0.34 | 0.31 | 1.36 | 1.24 | ||||||||||||||||||||
| Selected Financial Ratios and Other Data: | |||||||||||||||||||||||||||
| Performance Ratios: | |||||||||||||||||||||||||||
| Net interest margin | 3.71 | % | 3.34 | % | 2.92 | % | 2.60 | % | 2.54 | % | 3.15 | % | 2.57 | % | |||||||||||||
| Net interest margin – fully taxable-equivalent (non-GAAP)(3) | 3.73 | 3.35 | 2.93 | 2.61 | 2.55 | 3.17 | 2.58 | ||||||||||||||||||||
| Non-interest income to average assets | 0.71 | 0.79 | 0.84 | 1.33 | 1.08 | 0.91 | 1.25 | ||||||||||||||||||||
| Non-interest expense to average assets | 2.34 | 2.32 | 2.35 | 2.33 | 2.29 | 2.33 | 2.42 | ||||||||||||||||||||
| Net overhead ratio(4) | 1.63 | 1.53 | 1.51 | 1.00 | 1.21 | 1.42 | 1.17 | ||||||||||||||||||||
| Return on average assets | 1.10 | 1.12 | 0.77 | 1.04 | 0.80 | 1.01 | 1.00 | ||||||||||||||||||||
| Return on average common equity | 12.72 | 12.31 | 8.53 | 11.94 | 9.05 | 11.41 | 11.27 | ||||||||||||||||||||
| Return on average tangible common equity (non-GAAP)(3) | 15.21 | 14.68 | 10.36 | 14.48 | 11.04 | 13.73 | 13.83 | ||||||||||||||||||||
| Average total assets | $ | 52,087,618 | $ | 50,722,694 | $ | 49,353,426 | $ | 49,501,844 | $ | 49,118,777 | $ | 50,424,319 | $ | 46,824,051 | |||||||||||||
| Average total shareholders’ equity | 4,710,856 | 4,795,387 | 4,526,110 | 4,500,460 | 4,433,953 | 4,634,224 | 4,300,742 | ||||||||||||||||||||
| Average loans to average deposits ratio | 90.5 | % | 88.8 | % | 86.8 | % | 83.8 | % | 81.7 | % | 87.5 | % | 84.7 | % | |||||||||||||
| Period-end loans to deposits ratio | 91.4 | 89.2 | 87.0 | 83.6 | 82.6 | ||||||||||||||||||||||
| Common Share Data at end of period: | |||||||||||||||||||||||||||
| Market price per common share | $ | 84.52 | $ | 81.55 | $ | 80.15 | $ | 92.93 | $ | 90.82 | |||||||||||||||||
| Book value per common share | 72.12 | 69.56 | 71.06 | 71.26 | 71.62 | ||||||||||||||||||||||
| Tangible book value per common share (non-GAAP)(3) | 61.00 | 58.42 | 59.87 | 59.34 | 59.64 | ||||||||||||||||||||||
| Common shares outstanding | 60,794,008 | 60,743,335 | 60,721,889 | 57,253,214 | 57,054,091 | ||||||||||||||||||||||
| Other Data at end of period: | |||||||||||||||||||||||||||
| Tier 1 leverage ratio(5) | 8.8 | % | 8.8 | % | 8.8 | % | 8.1 | % | 8.0 | % | |||||||||||||||||
| Risk-based capital ratios: | |||||||||||||||||||||||||||
| Tier 1 capital ratio(5) | 10.0 | 9.9 | 9.9 | 9.6 | 9.6 | ||||||||||||||||||||||
| Common equity tier 1 capital ratio(5) | 9.1 | 9.0 | 9.0 | 8.6 | 8.6 | ||||||||||||||||||||||
| Total capital ratio(5) | 11.9 | 11.8 | 11.9 | 11.6 | 11.6 | ||||||||||||||||||||||
| Allowance for credit losses(6) | $ | 357,936 | $ | 315,338 | $ | 312,192 | $ | 301,327 | $ | 299,731 | |||||||||||||||||
| Allowance for loan and unfunded lending-related commitment losses to total loans | 0.91 | % | 0.83 | % | 0.84 | % | 0.85 | % | 0.86 | % | |||||||||||||||||
| Number of: | |||||||||||||||||||||||||||
| Bank subsidiaries | 15 | 15 | 15 | 15 | 15 | ||||||||||||||||||||||
| Banking offices | 174 | 174 | 173 | 174 | 173 | ||||||||||||||||||||||
(1) Excludes mortgage loans held-for-sale.
(2) Net revenue is net interest income and non-interest income.
(3) See Table 17: Supplemental Non-GAAP Financial Measures/Ratios for additional information on this performance measure/ratio.
(4) The net overhead ratio is calculated by netting total non-interest expense and total non-interest income, annualizing this amount, and dividing by that period’s average total assets. A lower ratio indicates a higher degree of efficiency.
(5) Capital ratios for current quarter-end are estimated.
(6) The allowance for credit losses includes the allowance for loan losses, the allowance for unfunded lending-related commitments and the allowance for held-to-maturity securities losses.
WINTRUST FINANCIAL CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CONDITION
| (Unaudited) | (Unaudited) | (Unaudited) | (Unaudited) | |||||||||||||||||
| Dec 31, | Sep 30, | Jun 30, | Mar 31, | Dec 31, | ||||||||||||||||
| (In thousands) | 2022 | 2022 | 2022 | 2022 | 2021 | |||||||||||||||
| Assets | ||||||||||||||||||||
| Cash and due from banks | $ | 490,908 | $ | 489,590 | $ | 498,891 | $ | 462,516 | $ | 411,150 | ||||||||||
| Federal funds sold and securities purchased under resale agreements | 58 | 57 | 475,056 | 700,056 | 700,055 | |||||||||||||||
| Interest-bearing deposits with banks | 1,988,719 | 3,968,605 | 3,266,541 | 4,013,597 | 5,372,603 | |||||||||||||||
| Available-for-sale securities, at fair value | 3,243,017 | 2,923,653 | 2,970,121 | 2,998,898 | 2,327,793 | |||||||||||||||
| Held-to-maturity securities, at amortized cost | 3,640,567 | 3,389,842 | 3,413,469 | 3,435,729 | 2,942,285 | |||||||||||||||
| Trading account securities | 1,127 | 179 | 1,010 | 852 | 1,061 | |||||||||||||||
| Equity securities with readily determinable fair value | 110,365 | 114,012 | 93,295 | 92,689 | 90,511 | |||||||||||||||
| Federal Home Loan Bank and Federal Reserve Bank stock | 224,759 | 178,156 | 136,138 | 136,163 | 135,378 | |||||||||||||||
| Brokerage customer receivables | 16,387 | 20,327 | 21,527 | 22,888 | 26,068 | |||||||||||||||
| Mortgage loans held-for-sale | 299,935 | 376,160 | 513,232 | 606,545 | 817,912 | |||||||||||||||
| Loans, net of unearned income | 39,196,485 | 38,167,613 | 37,053,103 | 35,280,547 | 34,789,104 | |||||||||||||||
| Allowance for loan losses | (270,173 | ) | (246,110 | ) | (251,769 | ) | (250,539 | ) | (247,835 | ) | ||||||||||
| Net loans | 38,926,312 | 37,921,503 | 36,801,334 | 35,030,008 | 34,541,269 | |||||||||||||||
| Premises, software and equipment, net | 764,798 | 763,029 | 762,381 | 761,213 | 766,405 | |||||||||||||||
| Lease investments, net | 253,928 | 244,822 | 223,813 | 240,656 | 242,082 | |||||||||||||||
| Accrued interest receivable and other assets | 1,391,342 | 1,316,305 | 1,112,697 | 1,066,750 | 1,084,115 | |||||||||||||||
| Trade date securities receivable | 921,717 | — | — | — | — | |||||||||||||||
| Goodwill | 653,524 | 653,079 | 654,709 | 655,402 | 655,149 | |||||||||||||||
| Other acquisition-related intangible assets | 22,186 | 23,620 | 25,118 | 26,699 | 28,307 | |||||||||||||||
| Total assets | $ | 52,949,649 | $ | 52,382,939 | $ | 50,969,332 | $ | 50,250,661 | $ | 50,142,143 | ||||||||||
| Liabilities and Shareholders’ Equity | ||||||||||||||||||||
| Deposits: | ||||||||||||||||||||
| Non-interest-bearing | $ | 12,668,160 | $ | 13,529,277 | $ | 13,855,844 | $ | 13,748,918 | $ | 14,179,980 | ||||||||||
| Interest-bearing | 30,234,384 | 29,267,914 | 28,737,482 | 28,470,404 | 27,915,605 | |||||||||||||||
| Total deposits | 42,902,544 | 42,797,191 | 42,593,326 | 42,219,322 | 42,095,585 | |||||||||||||||
| Federal Home Loan Bank advances | 2,316,071 | 2,316,071 | 1,166,071 | 1,241,071 | 1,241,071 | |||||||||||||||
| Other borrowings | 596,614 | 447,215 | 482,787 | 482,516 | 494,136 | |||||||||||||||
| Subordinated notes | 437,392 | 437,260 | 437,162 | 437,033 | 436,938 | |||||||||||||||
| Junior subordinated debentures | 253,566 | 253,566 | 253,566 | 253,566 | 253,566 | |||||||||||||||
| Trade date securities payable | — | — | — | 437 | — | |||||||||||||||
| Accrued interest payable and other liabilities | 1,646,624 | 1,493,656 | 1,308,797 | 1,124,460 | 1,122,159 | |||||||||||||||
| Total liabilities | 48,152,811 | 47,744,959 | 46,241,709 | 45,758,405 | 45,643,455 | |||||||||||||||
| Shareholders’ Equity: | ||||||||||||||||||||
| Preferred stock | 412,500 | 412,500 | 412,500 | 412,500 | 412,500 | |||||||||||||||
| Common stock | 60,797 | 60,743 | 60,722 | 59,091 | 58,892 | |||||||||||||||
| Surplus | 1,902,474 | 1,891,621 | 1,880,913 | 1,698,093 | 1,685,572 | |||||||||||||||
| Treasury stock | (304 | ) | — | — | (109,903 | ) | (109,903 | ) | ||||||||||||
| Retained earnings | 2,849,007 | 2,731,844 | 2,616,525 | 2,548,474 | 2,447,535 | |||||||||||||||
| Accumulated other comprehensive (loss) income | (427,636 | ) | (458,728 | ) | (243,037 | ) | (115,999 | ) | 4,092 | |||||||||||
| Total shareholders’ equity | 4,796,838 | 4,637,980 | 4,727,623 | 4,492,256 | 4,498,688 | |||||||||||||||
| Total liabilities and shareholders’ equity | $ | 52,949,649 | $ | 52,382,939 | $ | 50,969,332 | $ | 50,250,661 | $ | 50,142,143 | ||||||||||
WINTRUST FINANCIAL CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED)
| Three Months Ended | Years Ended | |||||||||||||||||||||||||
| (In thousands, except per share data) | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Dec 31, 2022 | Dec 31, 2021 | |||||||||||||||||||
| Interest income | ||||||||||||||||||||||||||
| Interest and fees on loans | $ | 498,838 | $ | 402,689 | $ | 320,501 | $ | 285,698 | $ | 289,140 | $ | 1,507,726 | $ | 1,133,528 | ||||||||||||
| Mortgage loans held-for-sale | 3,997 | 5,371 | 5,740 | 6,087 | 7,234 | 21,195 | 32,169 | |||||||||||||||||||
| Interest-bearing deposits with banks | 20,349 | 15,621 | 5,790 | 1,687 | 2,254 | 43,447 | 6,606 | |||||||||||||||||||
| Federal funds sold and securities purchased under resale agreements | 1,263 | 1,845 | 1,364 | 431 | 173 | 4,903 | 173 | |||||||||||||||||||
| Investment securities | 53,092 | 38,569 | 36,541 | 32,398 | 27,210 | 160,600 | 95,286 | |||||||||||||||||||
| Trading account securities | 6 | 7 | 4 | 5 | 4 | 22 | 10 | |||||||||||||||||||
| Federal Home Loan Bank and Federal Reserve Bank stock | 2,918 | 2,109 | 1,823 | 1,772 | 1,776 | 8,622 | 7,067 | |||||||||||||||||||
| Brokerage customer receivables | 282 | 267 | 205 | 174 | 188 | 928 | 645 | |||||||||||||||||||
| Total interest income | 580,745 | 466,478 | 371,968 | 328,252 | 327,979 | 1,747,443 | 1,275,484 | |||||||||||||||||||
| Interest expense | ||||||||||||||||||||||||||
| Interest on deposits | 95,447 | 45,916 | 18,985 | 14,854 | 16,572 | 175,202 | 88,119 | |||||||||||||||||||
| Interest on Federal Home Loan Bank advances | 13,823 | 6,812 | 4,878 | 4,816 | 4,923 | 30,329 | 19,581 | |||||||||||||||||||
| Interest on other borrowings | 5,313 | 4,008 | 2,734 | 2,239 | 2,250 | 14,294 | 9,928 | |||||||||||||||||||
| Interest on subordinated notes | 5,520 | 5,485 | 5,517 | 5,482 | 5,514 | 22,004 | 21,983 | |||||||||||||||||||
| Interest on junior subordinated debentures | 3,826 | 2,809 | 2,050 | 1,567 | 2,744 | 10,252 | 10,916 | |||||||||||||||||||
| Total interest expense | 123,929 | 65,030 | 34,164 | 28,958 | 32,003 | 252,081 | 150,527 | |||||||||||||||||||
| Net interest income | 456,816 | 401,448 | 337,804 | 299,294 | 295,976 | 1,495,362 | 1,124,957 | |||||||||||||||||||
| Provision for credit losses | 47,646 | 6,420 | 20,417 | 4,106 | 9,299 | 78,589 | (59,263 | ) | ||||||||||||||||||
| Net interest income after provision for credit losses | 409,170 | 395,028 | 317,387 | 295,188 | 286,677 | 1,416,773 | 1,184,220 | |||||||||||||||||||
| Non-interest income | ||||||||||||||||||||||||||
| Wealth management | 30,727 | 33,124 | 31,369 | 31,394 | 32,489 | 126,614 | 124,019 | |||||||||||||||||||
| Mortgage banking | 17,407 | 27,221 | 33,314 | 77,231 | 53,138 | 155,173 | 273,010 | |||||||||||||||||||
| Service charges on deposit accounts | 13,054 | 14,349 | 15,888 | 15,283 | 14,734 | 58,574 | 54,168 | |||||||||||||||||||
| Losses on investment securities, net | (6,745 | ) | (3,103 | ) | (7,797 | ) | (2,782 | ) | (1,067 | ) | (20,427 | ) | (1,059 | ) | ||||||||||||
| Fees from covered call options | 7,956 | 1,366 | 1,069 | 3,742 | 1,128 | 14,133 | 3,673 | |||||||||||||||||||
| Trading (losses) gains, net | (306 | ) | (7 | ) | 176 | 3,889 | 206 | 3,752 | 245 | |||||||||||||||||
| Operating lease income, net | 12,384 | 12,644 | 15,007 | 15,475 | 14,204 | 55,510 | 53,691 | |||||||||||||||||||
| Other | 19,362 | 15,888 | 13,916 | 18,558 | 18,935 | 67,724 | 78,373 | |||||||||||||||||||
| Total non-interest income | 93,839 | 101,482 | 102,942 | 162,790 | 133,767 | 461,053 | 586,120 | |||||||||||||||||||
| Non-interest expense | ||||||||||||||||||||||||||
| Salaries and employee benefits | 180,331 | 176,095 | 167,326 | 172,355 | 167,131 | 696,107 | 691,669 | |||||||||||||||||||
| Software and equipment | 24,699 | 24,126 | 24,250 | 22,810 | 23,708 | 95,885 | 87,515 | |||||||||||||||||||
| Operating lease equipment | 10,078 | 9,448 | 8,774 | 9,708 | 10,147 | 38,008 | 40,880 | |||||||||||||||||||
| Occupancy, net | 17,763 | 17,727 | 17,651 | 17,824 | 18,343 | 70,965 | 74,184 | |||||||||||||||||||
| Data processing | 7,927 | 7,767 | 8,010 | 7,505 | 7,207 | 31,209 | 27,279 | |||||||||||||||||||
| Advertising and marketing | 14,279 | 16,600 | 16,615 | 11,924 | 13,981 | 59,418 | 47,275 | |||||||||||||||||||
| Professional fees | 9,267 | 7,544 | 7,876 | 8,401 | 7,551 | 33,088 | 29,494 | |||||||||||||||||||
| Amortization of other acquisition-related intangible assets | 1,436 | 1,492 | 1,579 | 1,609 | 1,811 | 6,116 | 7,734 | |||||||||||||||||||
| FDIC insurance | 6,775 | 7,186 | 6,949 | 7,729 | 7,317 | 28,639 | 27,030 | |||||||||||||||||||
| OREO expense, net | 369 | 229 | 294 | (1,032 | ) | (641 | ) | (140 | ) | (1,654 | ) | |||||||||||||||
| Other | 34,912 | 28,255 | 29,344 | 25,465 | 26,844 | 117,976 | 101,138 | |||||||||||||||||||
| Total non-interest expense | 307,836 | 296,469 | 288,668 | 284,298 | 283,399 | 1,177,271 | 1,132,544 | |||||||||||||||||||
| Income before taxes | 195,173 | 200,041 | 131,661 | 173,680 | 137,045 | 700,555 | 637,796 | |||||||||||||||||||
| Income tax expense | 50,356 | 57,080 | 37,148 | 46,289 | 38,288 | 190,873 | 171,645 | |||||||||||||||||||
| Net income | $ | 144,817 | $ | 142,961 | $ | 94,513 | $ | 127,391 | $ | 98,757 | $ | 509,682 | $ | 466,151 | ||||||||||||
| Preferred stock dividends | 6,991 | 6,991 | 6,991 | 6,991 | 6,991 | 27,964 | 27,964 | |||||||||||||||||||
| Net income applicable to common shares | $ | 137,826 | $ | 135,970 | $ | 87,522 | $ | 120,400 | $ | 91,766 | $ | 481,718 | $ | 438,187 | ||||||||||||
| Net income per common share - Basic | $ | 2.27 | $ | 2.24 | $ | 1.51 | $ | 2.11 | $ | 1.61 | $ | 8.14 | $ | 7.69 | ||||||||||||
| Net income per common share - Diluted | $ | 2.23 | $ | 2.21 | $ | 1.49 | $ | 2.07 | $ | 1.58 | $ | 8.02 | $ | 7.58 | ||||||||||||
| Cash dividends declared per common share | $ | 0.34 | $ | 0.34 | $ | 0.34 | $ | 0.34 | $ | 0.31 | $ | 1.36 | $ | 1.24 | ||||||||||||
| Weighted average common shares outstanding | 60,769 | 60,738 | 58,063 | 57,196 | 57,022 | 59,205 | 56,994 | |||||||||||||||||||
| Dilutive potential common shares | 1,096 | 837 | 775 | 862 | 976 | 886 | 792 | |||||||||||||||||||
| Average common shares and dilutive common shares | 61,865 | 61,575 | 58,838 | 58,058 | 57,998 | 60,091 | 57,786 | |||||||||||||||||||
TABLE 1: LOAN PORTFOLIO MIX AND GROWTH RATES
| % Growth From(1) | |||||||||||||||||||
| (Dollars in thousands) | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2022(2) | Dec 31, 2021 | ||||||||||||
| Balance: | |||||||||||||||||||
| Mortgage loans held-for-sale, excluding early buy-out exercised loans guaranteed by U.S. government agencies | $ | 156,297 | $ | 216,062 | $ | 294,688 | $ | 296,548 | $ | 473,102 | NM | (67 | )% | ||||||
| Mortgage loans held-for-sale, early buy-out exercised loans guaranteed by U.S. government agencies | 143,638 | 160,098 | 218,544 | 309,997 | 344,810 | (41 | ) | (58 | ) | ||||||||||
| Total mortgage loans held-for-sale | $ | 299,935 | $ | 376,160 | $ | 513,232 | $ | 606,545 | $ | 817,912 | (80 | )% | (63 | )% | |||||
| Core loans: | |||||||||||||||||||
| Commercial | |||||||||||||||||||
| Commercial and industrial | $ | 5,852,166 | $ | 5,818,959 | $ | 5,502,584 | $ | 5,348,266 | $ | 5,346,084 | 2 | % | 9 | % | |||||
| Asset-based lending | 1,473,344 | 1,545,038 | 1,552,033 | 1,365,297 | 1,299,869 | (18 | ) | 13 | |||||||||||
| Municipal | 668,235 | 608,234 | 535,586 | 533,357 | 536,498 | 39 | 25 | ||||||||||||
| Leases | 1,840,928 | 1,582,359 | 1,592,329 | 1,481,368 | 1,454,099 | 65 | 27 | ||||||||||||
| Commercial real estate | |||||||||||||||||||
| Residential construction | 76,877 | 66,957 | 55,941 | 57,037 | 51,464 | 59 | 49 | ||||||||||||
| Commercial construction | 1,102,098 | 1,176,407 | 1,145,602 | 1,055,972 | 1,034,988 | (25 | ) | 6 | |||||||||||
| Land | 307,955 | 282,147 | 304,775 | 283,397 | 269,752 | 36 | 14 | ||||||||||||
| Office | 1,337,176 | 1,269,729 | 1,321,745 | 1,273,705 | 1,285,686 | 21 | 4 | ||||||||||||
| Industrial | 1,836,276 | 1,777,658 | 1,746,280 | 1,668,516 | 1,585,808 | 13 | 16 | ||||||||||||
| Retail | 1,304,444 | 1,331,316 | 1,331,059 | 1,395,021 | 1,429,567 | (8 | ) | (9 | ) | ||||||||||
| Multi-family | 2,560,709 | 2,305,433 | 2,171,583 | 2,175,875 | 2,043,754 | 44 | 25 | ||||||||||||
| Mixed use and other | 1,425,412 | 1,368,537 | 1,330,220 | 1,325,551 | 1,289,267 | 16 | 11 | ||||||||||||
| Home equity | 332,698 | 328,822 | 325,826 | 321,435 | 335,155 | 5 | (1 | ) | |||||||||||
| Residential real estate | |||||||||||||||||||
| Residential real estate loans for investment | 2,207,595 | 2,086,795 | 1,965,051 | 1,749,889 | 1,606,271 | 23 | 37 | ||||||||||||
| Residential mortgage loans, early buy-out eligible loans guaranteed by U.S. government agencies | 80,701 | 57,161 | 34,764 | 13,520 | 22,707 | NM | NM | ||||||||||||
| Residential mortgage loans, early buy-out exercised loans guaranteed by U.S. government agencies | 84,087 | 91,503 | 79,092 | 36,576 | 8,121 | (32 | ) | NM | |||||||||||
| Total core loans | $ | 22,490,701 | $ | 21,697,055 | $ | 20,994,470 | $ | 20,084,782 | $ | 19,599,090 | 15 | % | 15 | % | |||||
| Niche loans: | |||||||||||||||||||
| Commercial | |||||||||||||||||||
| Franchise | $ | 1,169,623 | $ | 1,118,478 | $ | 1,136,929 | $ | 1,181,761 | $ | 1,227,234 | 18 | % | (5 | )% | |||||
| Mortgage warehouse lines of credit | 237,392 | 297,374 | 398,085 | 261,847 | 359,818 | (80 | ) | (34 | ) | ||||||||||
| Community Advantage - homeowners association | 380,875 | 365,967 | 341,095 | 324,383 | 308,286 | 16 | 24 | ||||||||||||
| Insurance agency lending | 897,678 | 879,183 | 906,375 | 833,720 | 813,897 | 8 | 10 | ||||||||||||
| Premium Finance receivables | |||||||||||||||||||
| U.S. property & casualty insurance | 5,103,820 | 4,983,795 | 4,781,042 | 4,271,828 | 4,178,474 | 10 | 22 | ||||||||||||
| Canada property & casualty insurance | 745,639 | 729,545 | 760,405 | 665,580 | 677,013 | 9 | 10 | ||||||||||||
| Life insurance | 8,090,998 | 8,004,856 | 7,608,433 | 7,354,163 | 7,042,810 | 4 | 15 | ||||||||||||
| Consumer and other | 50,836 | 47,702 | 44,180 | 48,519 | 24,199 | 26 | NM | ||||||||||||
| Total niche loans | $ | 16,676,861 | $ | 16,426,900 | $ | 15,976,544 | $ | 14,941,801 | $ | 14,631,731 | 6 | % | 14 | % | |||||
| Commercial PPP loans: | |||||||||||||||||||
| Originated in 2020 | $ | 7,898 | $ | 8,724 | $ | 18,547 | $ | 40,016 | $ | 74,412 | (38 | )% | (89 | )% | |||||
| Originated in 2021 | 21,025 | 34,934 | 63,542 | 213,948 | 483,871 | NM | (96 | ) | |||||||||||
| Total commercial PPP loans | $ | 28,923 | $ | 43,658 | $ | 82,089 | $ | 253,964 | $ | 558,283 | NM | (95 | )% | ||||||
| Total loans, net of unearned income | $ | 39,196,485 | $ | 38,167,613 | $ | 37,053,103 | $ | 35,280,547 | $ | 34,789,104 | 11 | % | 13 | % | |||||
(1) NM - Not meaningful.
(2) Annualized
TABLE 2: DEPOSIT PORTFOLIO MIX AND GROWTH RATES
| % Growth From | ||||||||||||||||||||||||
| (Dollars in thousands) | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2022(1) | Dec 31, 2021 | |||||||||||||||||
| Balance: | ||||||||||||||||||||||||
| Non-interest-bearing | $ | 12,668,160 | $ | 13,529,277 | $ | 13,855,844 | $ | 13,748,918 | $ | 14,179,980 | (25 | )% | (11 | )% | ||||||||||
| NOW and interest-bearing demand deposits | 5,591,986 | 5,676,122 | 5,918,908 | 5,089,724 | 4,646,944 | (6 | ) | 20 | ||||||||||||||||
| Wealth management deposits(2) | 2,463,833 | 2,988,195 | 3,182,407 | 2,542,995 | 2,612,759 | (70 | ) | (6 | ) | |||||||||||||||
| Money market | 12,886,795 | 12,538,489 | 12,273,350 | 13,012,460 | 12,840,432 | 11 | — | |||||||||||||||||
| Savings | 4,556,635 | 3,988,790 | 3,686,596 | 4,089,230 | 3,846,681 | 56 | 18 | |||||||||||||||||
| Time certificates of deposit | 4,735,135 | 4,076,318 | 3,676,221 | 3,735,995 | 3,968,789 | 64 | 19 | |||||||||||||||||
| Total deposits | $ | 42,902,544 | $ | 42,797,191 | $ | 42,593,326 | $ | 42,219,322 | $ | 42,095,585 | 1 | % | 2 | % | ||||||||||
| Mix: | ||||||||||||||||||||||||
| Non-interest-bearing | 30 | % | 32 | % | 33 | % | 32 | % | 34 | % | ||||||||||||||
| NOW and interest-bearing demand deposits | 13 | 13 | 13 | 12 | 11 | |||||||||||||||||||
| Wealth management deposits(2) | 5 | 7 | 7 | 6 | 6 | |||||||||||||||||||
| Money market | 30 | 29 | 29 | 31 | 31 | |||||||||||||||||||
| Savings | 11 | 9 | 9 | 10 | 9 | |||||||||||||||||||
| Time certificates of deposit | 11 | 10 | 9 | 9 | 9 | |||||||||||||||||||
| Total deposits | 100 | % | 100 | % | 100 | % | 100 | % | 100 | % | ||||||||||||||
(1) Annualized.
(2) Represents deposit balances of the Company’s subsidiary banks from brokerage customers of Wintrust Investments, Chicago Deferred Exchange Company, LLC (“CDEC”), trust and asset management customers of the Company.
TABLE 3: TIME CERTIFICATES OF DEPOSIT MATURITY/RE-PRICING ANALYSIS
As of December 31, 2022
| (Dollars in thousands) | Total Time Certificates of Deposit | Weighted-Average Rate of Maturing Time Certificates of Deposit(1) | ||||
| 1-3 months | $ | 988,118 | 2.04 | % | ||
| 4-6 months | 929,448 | 1.89 | ||||
| 7-9 months | 815,885 | 1.56 | ||||
| 10-12 months | 894,365 | 2.06 | ||||
| 13-18 months | 654,059 | 2.32 | ||||
| 19-24 months | 233,827 | 2.03 | ||||
| 24+ months | 219,433 | 2.20 | ||||
| Total | $ | 4,735,135 | 1.98 | % | ||
(1) Weighted-average rate excludes the impact of purchase accounting fair value adjustments.
TABLE 4: QUARTERLY AVERAGE BALANCES
| Average Balance for three months ended, | ||||||||||||||||||||
| Dec 31, | Sep 30, | Jun 30, | Mar 31, | Dec 31, | ||||||||||||||||
| (In thousands) | 2022 | |||||||||||||||||||