Wintrust Financial Corporation Reports Fourth Quarter 2020 Net Income of $101.2 million and Full-Year 2020 Net Income of $293.0 million
Wintrust Financial Corporation (Nasdaq: WTFC) reported a net income of $101.2 million in Q4 2020, representing a 2% decrease sequentially but a 13% increase year-over-year. For the full year, net income totaled $293 million, down from $355.7 million in 2019. Key highlights include a $1.3 billion rise in total assets and $1.2 billion in total deposits. Non-performing loans declined by 26%, while net interest income increased by $3.5 million. Mortgage banking revenue dropped by $21.7 million. The company plans to close 10 branches, projecting annual savings of $5 million.
- Net income increased by 13% year-over-year.
- Total assets grew by $1.3 billion.
- Total deposits rose by $1.2 billion.
- Non-performing loans decreased by 26%.
- Net interest income increased by $3.5 million.
- Net income decreased by 2% compared to the previous quarter.
- Full-year net income down 17.6% from 2019.
- Mortgage banking revenue decreased by $21.7 million.
- Provision for credit losses totaled $1.2 million, indicating potential challenges.
ROSEMONT, Ill., Jan. 20, 2021 (GLOBE NEWSWIRE) -- Wintrust Financial Corporation (“Wintrust”, “the Company”, "we" or "our") (Nasdaq: WTFC) announced net income of
Highlights of the Fourth Quarter of 2020:
Comparative information to the third quarter of 2020
- Total assets increased by
$1.3 billion . - Total loans, excluding Paycheck Protection Program ("PPP") loans, increased by
$607 million primarily due to growth in commercial loans and life insurance premium finance receivables. This growth also included a$71 million net increase in residential real estate loans for investment as the Company decided to allocate a portion of its current and future mortgage production for investment.
• In addition, during the fourth quarter of 2020, the Company exercised its early buy-out option on$248 million of eligible loans previously sold to the Government National Mortgage Association ("GNMA") recorded in mortgage loans held-for-sale. See Table 1 for more information.
• PPP loans originated in 2020 declined by$663 million in the fourth quarter of 2020 primarily as a result of processing forgiveness payments. As of January 15, 2021, approximately23% of PPP loan balances originated in 2020 have been forgiven, approximately45% of balances are in the forgiveness review or submission process, and approximately32% of balances have yet to apply. - Total deposits increased by
$1.2 billion , notwithstanding the return of approximately$666 million in wholesale deposits during the fourth quarter of 2020. - Net interest income increased by
$3.5 million primarily due to a reduction in the rate on interest-bearing deposits and loan growth.
• The rate on interest-bearing deposits declined by 10 basis points in the fourth quarter of 2020 as compared to the third quarter of 2020. This improvement more than offset a two basis point decline in the yield on total loans in the fourth quarter of 2020 as compared to the third quarter of 2020.
• The Company recognized$16.8 million of PPP loan fee accretion in the fourth quarter of 2020 as compared to$17.4 million in the third quarter of 2020 on PPP loans originated in 2020. As of December 31, 2020, the Company had approximately$32.5 million of PPP loan fees that have yet to be recognized in income. - The loans to deposits ratio ended the fourth quarter of 2020 at
86.5% as compared to89.7% as of September 30, 2020. Excluding PPP loans, the loans to deposits ratio ended the fourth quarter of 2020 at79.2% . - Mortgage banking revenue decreased by
$21.7 million to$86.8 million for the fourth quarter of 2020 as compared to$108.5 million in the prior quarter. - Outstanding COVID-19 related loan modifications for customers totaled approximately
$345 million or1.2% of total loans, excluding PPP loans, as of December 31, 2020 as compared to$413 million or1.4% as of September 30, 2020. - Provision for credit losses totaled
$1.2 million in the fourth quarter of 2020 as compared to$25.0 million in the third quarter of 2020. - Recorded net charge-offs of
$10.3 million in the fourth quarter of 2020, of which$5.9 million were reserves on individually assessed loans as of the prior quarter end, as compared to net charge-offs of$9.3 million in the third quarter of 2020. Net charge-offs as a percentage of average total loans, totaled 13 basis points in the fourth quarter of 2020 on an annualized basis compared to 12 basis points on an annualized basis in the third quarter of 2020. - The allowance for credit losses on our core loan portfolio is approximately
1.82% of the outstanding balance as of December 31, 2020, down from1.88% as of September 30, 2020. See Table 12 for more information. - Non-performing loans declined by
$45.6 million , or26% , and totaled$127.5 million , or0.40% of total loans, as of December 31, 2020 as compared to$173.1 million , or0.54% of total loans, as of September 30, 2020.
Other items of note from the fourth quarter of 2020
- The following items had a
$13.2 million unfavorable pre-tax income impact on the fourth quarter of 2020:
• Recorded a decrease in the value of mortgage servicing rights related to changes in fair value model assumptions of$5.2 million in the fourth quarter of 2020 as compared to a decrease of$3.0 million in the third quarter of 2020.
• Accrued$6.6 million of contingent consideration expense in the fourth quarter of 2020 related to the previous acquisition of mortgage operations as compared to$6.3 million in the third quarter of 2020, which was recorded in other non-interest expense.
• Recorded an impairment charge of$1.4 million in occupancy expense related to the planned closure of 10 bank branches. - Repurchased 974,150 shares of our common stock at a cost of
$54.9 million , or an average price of$56.40 per share.
Edward J. Wehmer, Founder and Chief Executive Officer, commented, "Wintrust reported net income of
Reflecting on the year, Mr. Wehmer stated, "I am very appreciative of our staff's tireless efforts to make the best of a difficult year. The year offered many challenges and I could not be more proud of our results. Pre-tax income, excluding provision for credit losses (non-GAAP), increased by
Mr. Wehmer continued, "The Company experienced significant loan growth, excluding PPP loans, in the fourth quarter of 2020, including growth in its commercial, commercial real estate, residential real estate loans for investment and life insurance premium finance receivable portfolios. In addition, the Company supplemented loan growth by exercising its early buy-out option on eligible GNMA loans. The majority of the loan growth was in the latter part of the quarter as total period end loans, excluding PPP loans, were
Mr. Wehmer commented, "Net interest income increased in the fourth quarter of 2020 primarily due to lower interest expense on interest-bearing deposits and loan growth. The rate on interest-bearing deposits declined 10 basis points in the fourth quarter of 2020 as compared to the third quarter of 2020. This improvement more than offset a two basis point decline in the yield on total loans in the fourth quarter of 2020 as compared to the third quarter of 2020. PPP loan fee accretion was relatively flat as the Company recognized
Mr. Wehmer noted, “Our mortgage banking business delivered another strong quarter of mortgage banking revenue in light of the demand associated with historically low long-term interest rates. Loan volumes originated for sale in the fourth quarter of 2020 were
Commenting on credit quality, Mr. Wehmer stated, "The Company recorded provision for credit losses of
Mr. Wehmer added, "In addition to the previously announced sale of three branches in southwestern Wisconsin, we continue to review our branch footprint and have initiated plans to close an additional 10 branches. These are predominantly smaller locations in close proximity to other Wintrust locations. As such, we do not expect any material attrition or customer disruption. We expect the noted branches to close prior to the end of the second quarter and the branch sale in Wisconsin to close in the second quarter. In the fourth quarter of 2020, we recorded an impairment charge of
Mr. Wehmer concluded, "We remain committed to supporting our community, including the well-being and safety of our customers and employees. We are participating in the latest round of PPP having opened our application portal on January 11, 2021. As of January 19, 2021, we have received approximately 5,400 applications aggregating in excess of
Graphs available at the following link: http://ml.globenewswire.com/Resource/Download/0bdf7499-4e66-4b90-bd05-707da79ea7cd
SUMMARY OF RESULTS:
BALANCE SHEET
Total asset growth of
The
Total liabilities increased
For more information regarding changes in the Company’s balance sheet, see Consolidated Statements of Condition and Tables 1 through 3 in this report.
NET INTEREST INCOME
For the fourth quarter of 2020, net interest income totaled
Net interest margin was
For more information regarding net interest income, see Tables 4 through 8 in this report.
ASSET QUALITY
The allowance for credit losses totaled
The provision for credit losses totaled
Management believes the allowance for credit losses is appropriate to account for expected credit losses. The Current Expected Credit Losses ("CECL") standard requires the Company to estimate expected credit losses over the life of the Company’s financial assets at a certain point in time. 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 the core loan portfolio, the niche and consumer loan portfolio and the purchased loan portfolio as of December 31, 2020 and September 30, 2020 is shown on Table 12 of this report.
Net charge-offs totaled
As of December 31, 2020,
The Company’s home equity and residential real estate loan portfolios continue to exhibit low delinquency rates as of December 31, 2020. Home equity loans at December 31, 2020 that are current with regard to the contractual terms of the loan agreement represent
Outstanding COVID-19 related loan modifications for customers totaled approximately
The ratio of non-performing assets to total assets was
NON-INTEREST INCOME
Wealth management revenue increased by
Mortgage banking revenue decreased by
During the fourth quarter of 2020, the fair value of the mortgage servicing rights portfolio increased primarily due to the capitalization of
Other non-interest income increased by
For more information regarding non-interest income, see Tables 15 and 16 in this report.
NON-INTEREST EXPENSE
Salaries and employee benefits expense increased by
The increase in commissions and incentive compensation is primarily due to increased commissions expense from higher levels of mortgage loan originations in the current quarter. The increase in salaries expense is primarily related to increased staffing costs to support mortgage origination and investment in technology related services to satisfy customer demands and create efficiencies in operations.
Occupancy expense totaled
Equipment expense totaled
Advertising and Marketing expense totaled
Miscellaneous expense in the fourth quarter of 2020 increased by
For more information regarding non-interest expense, see Table 17 in this report.
INCOME TAXES
The Company recorded income tax expense of
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 2020, this unit expanded its loan portfolio, excluding PPP loans, and its deposit portfolio. However, the banking segment also experienced net interest margin compression primarily due to increased levels of liquidity as average interest bearing cash increased by
Mortgage banking revenue was
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
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
ITEMS IMPACTING COMPARATIVE FINANCIAL RESULTS
Paycheck Protection Program
On March 27, 2020, the President of the United States signed the CARES Act, which authorized the Small Business Administration ("SBA") to guarantee loans under the PPP for small businesses who met the necessary eligibility requirements in order to keep their workers on the payroll. The Company began accepting applications on April 3, 2020. From such date through the end of 2020, the Company secured authorization from the SBA for and funded over 12,000 PPP loans with a carrying balance of approximately
Acquisitions
On November 1, 2019, the Company completed its acquisition of SBC, Incorporated (“SBC”). SBC was the parent company of Countryside Bank. Through this business combination, the Company acquired Countryside Bank's six banking offices located in Countryside, Burbank, Darien, Homer Glen, Oak Brook and Chicago, Illinois. As of the acquisition date, the Company acquired approximately
On October 7, 2019, the Company completed its acquisition of STC Bancshares Corp. (“STC”). STC was the parent company of STC Capital Bank. Through this business combination, the Company acquired STC Capital Bank's five banking offices located in the communities of St. Charles, Geneva and South Elgin, Illinois. As of the acquisition date, the Company acquired approximately
On May 24, 2019, the Company completed its acquisition of Rush-Oak Corporation ("ROC"). ROC was the parent company of Oak Bank. Through this business combination, the Company acquired Oak Bank's one banking location in Chicago, Illinois. As of the acquisition date, the Company acquired approximately
Adoption of New Credit Losses Accounting Standard
Beginning in 2020, the Company adopted the CECL standard, which impacted the measurement of the Company’s allowance for credit losses (including the allowance for unfunded lending-related commitments). CECL replaced the previous incurred loss methodology, which delayed recognition until such loss was probable, with a methodology that reflects an estimate of lifetime expected credit losses considering current economic condition and forecasts. Though other assets, including investment securities and other receivables, were considered in-scope of the standard and required a measurement of the allowance for credit loss, the most significant impact of CECL remains within the Company’s loan portfolios and related lending commitments. For more information regarding the adoption of CECL, see the "Asset Quality" section and the asset quality Tables 10-14 in this report.
WINTRUST FINANCIAL CORPORATION
Selected Financial Highlights
| Three Months Ended | Years Ended | ||||||||||||||||||||||||||
| (Dollars in thousands, except per share data) | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Dec 31, 2020 | Dec 31, 2019 | ||||||||||||||||||||
| Selected Financial Condition Data (at end of period): | |||||||||||||||||||||||||||
| Total assets | $ | 45,080,768 | $ | 43,731,718 | $ | 43,540,017 | $ | 38,799,847 | $ | 36,620,583 | |||||||||||||||||
| Total loans (1) | 32,079,073 | 32,135,555 | 31,402,903 | 27,807,321 | 26,800,290 | ||||||||||||||||||||||
| Total deposits | 37,092,651 | 35,844,422 | 35,651,874 | 31,461,660 | 30,107,138 | ||||||||||||||||||||||
| Junior subordinated debentures | 253,566 | 253,566 | 253,566 | 253,566 | 253,566 | ||||||||||||||||||||||
| Total shareholders’ equity | 4,115,995 | 4,074,089 | 3,990,218 | 3,700,393 | 3,691,250 | ||||||||||||||||||||||
| Selected Statements of Income Data: | |||||||||||||||||||||||||||
| Net interest income | $ | 259,397 | $ | 255,936 | $ | 263,131 | $ | 261,443 | $ | 261,879 | $ | 1,039,907 | $ | 1,054,919 | |||||||||||||
| Net revenue (2) | 417,758 | 426,529 | 425,124 | 374,685 | 374,099 | 1,644,096 | 1,462,091 | ||||||||||||||||||||
| Net income | 101,204 | 107,315 | 21,659 | 62,812 | 85,964 | 292,990 | 355,697 | ||||||||||||||||||||
| Pre-tax income, excluding provision for credit losses (non-GAAP) (3) | 135,891 | 162,310 | 165,756 | 140,044 | 124,508 | 604,001 | 533,965 | ||||||||||||||||||||
| Net income per common share – Basic | 1.64 | 1.68 | 0.34 | 1.05 | 1.46 | 4.72 | 6.11 | ||||||||||||||||||||
| Net income per common share – Diluted | 1.63 | 1.67 | 0.34 | 1.04 | 1.44 | 4.68 | 6.03 | ||||||||||||||||||||
| Selected Financial Ratios and Other Data: | |||||||||||||||||||||||||||
| Performance Ratios: | |||||||||||||||||||||||||||
| Net interest margin | 2.53 | % | 2.56 | % | 2.73 | % | 3.12 | % | 3.17 | % | 2.72 | % | 3.45 | % | |||||||||||||
| Net interest margin - fully taxable equivalent (non-GAAP) (3) | 2.54 | 2.57 | 2.74 | 3.14 | 3.19 | 2.73 | 3.47 | ||||||||||||||||||||
| Non-interest income to average assets | 1.44 | 1.58 | 1.55 | 1.24 | 1.25 | 1.46 | 1.23 | ||||||||||||||||||||
| Non-interest expense to average assets | 2.56 | 2.45 | 2.48 | 2.58 | 2.78 | 2.51 | 2.79 | ||||||||||||||||||||
| Net overhead ratio (4) | 1.12 | 0.87 | 0.93 | 1.33 | 1.53 | 1.05 | 1.57 | ||||||||||||||||||||
| Return on average assets | 0.92 | 0.99 | 0.21 | 0.69 | 0.96 | 0.71 | 1.07 | ||||||||||||||||||||
| Return on average common equity | 10.30 | 10.66 | 2.17 | 6.82 | 9.52 | 7.50 | 10.41 | ||||||||||||||||||||
| Return on average tangible common equity (non-GAAP) (3) | 12.95 | 13.43 | 2.95 | 8.73 | 12.17 | 9.54 | 13.22 | ||||||||||||||||||||
| Average total assets | $ | 43,810,005 | $ | 42,962,844 | $ | 42,042,729 | $ | 36,625,490 | $ | 35,645,190 | $ | 41,371,339 | $ | 33,232,083 | |||||||||||||
| Average total shareholders’ equity | 4,050,286 | 4,034,902 | 3,908,846 | 3,710,169 | 3,622,184 | 3,926,688 | 3,461,535 | ||||||||||||||||||||
| Average loans to average deposits ratio | 87.8 | % | 89.6 | % | 87.8 | % | 90.1 | % | 88.8 | % | 88.8 | % | 91.4 | % | |||||||||||||
| Period-end loans to deposits ratio | 86.5 | 89.7 | 88.1 | 88.4 | 89.0 | ||||||||||||||||||||||
| Common Share Data at end of period: | |||||||||||||||||||||||||||
| Market price per common share | $ | 61.09 | $ | 40.05 | $ | 43.62 | $ | 32.86 | $ | 70.90 | |||||||||||||||||
| Book value per common share | 65.24 | 63.57 | 62.14 | 62.13 | 61.68 | ||||||||||||||||||||||
| Tangible book value per common share (non-GAAP) (3) | 53.23 | 51.70 | 50.23 | 50.18 | 49.70 | ||||||||||||||||||||||
| Common shares outstanding | 56,769,625 | 57,601,991 | 57,573,672 | 57,545,352 | 57,821,891 | ||||||||||||||||||||||
| Other Data at end of period: | |||||||||||||||||||||||||||
| Tier 1 leverage ratio (5) | 8.1 | % | 8.2 | % | 8.1 | % | 8.5 | % | 8.7 | % | |||||||||||||||||
| Risk-based capital ratios: | |||||||||||||||||||||||||||
| Tier 1 capital ratio (5) | 10.0 | 10.2 | 10.1 | 9.3 | 9.6 | ||||||||||||||||||||||
| Common equity tier 1 capital ratio(5) | 8.8 | 9.0 | 8.8 | 8.9 | 9.2 | ||||||||||||||||||||||
| Total capital ratio (5) | 12.6 | 12.9 | 12.8 | 11.9 | 12.2 | ||||||||||||||||||||||
| Allowance for credit losses (6) | $ | 379,969 | $ | 388,971 | $ | 373,174 | $ | 253,482 | $ | 158,461 | |||||||||||||||||
| Allowance for loan and unfunded lending-related commitment losses to total loans | 1.18 | % | 1.21 | % | 1.19 | % | 0.91 | % | 0.59 | % | |||||||||||||||||
| Number of: | |||||||||||||||||||||||||||
| Bank subsidiaries | 15 | 15 | 15 | 15 | 15 | ||||||||||||||||||||||
| Banking offices | 181 | 182 | 186 | 187 | 187 | ||||||||||||||||||||||
(1) Excludes mortgage loans held-for-sale.
(2) Net revenue includes net interest income and non-interest income.
(3) See “Supplemental Non-GAAP Financial Measures/Ratios” at Table 18 for additional information on this performance measure/ratio.
(4) The net overhead ratio is calculated by netting total non-interest expense and total non-interest income, annualizing this amount, and dividing by that period’s total average 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 both the allowance for loan losses and the allowance for unfunded lending-related commitments. Effective January 1, 2020, the allowance for credit losses also includes the allowance for investment securities as a result of the adoption of Accounting Standard Update ("ASU") 2016-13, Financial Instruments - Credit Losses.
WINTRUST FINANCIAL CORPORATION
Key Operating Measures
Wintrust’s key operating measures and growth rates for the fourth quarter of 2020, as compared to the third quarter of 2020 (sequential quarter) and fourth quarter of 2019 (linked quarter), are shown in the table below:
| Three Months Ended | % or(1) basis point (bp) change from 3rd Quarter 2020 | % or basis point (bp) change from 4th Quarter 2019 | |||||||||||||||||
| (Dollars in thousands, except per share data) | Dec 31, 2020 | Sep 30, 2020 | Dec 31, 2019 | ||||||||||||||||
| Net income | $ | 101,204 | $ | 107,315 | $ | 85,964 | (6 | ) | % | 18 | % | ||||||||
| Pre-tax income, excluding provision for credit losses (non-GAAP) (2) | 135,891 | 162,310 | 124,508 | (16 | ) | 9 | |||||||||||||
| Net income per common share – diluted | 1.63 | 1.67 | 1.44 | (2 | ) | 13 | |||||||||||||
| Net revenue (3) | 417,758 | 426,529 | 374,099 | (2 | ) | 12 | |||||||||||||
| Net interest income | 259,397 | 255,936 | 261,879 | 1 | (1 | ) | |||||||||||||
| Net interest margin | 2.53 | % | 2.56 | % | 3.17 | % | (3 | ) | bps | (64 | ) | bps | |||||||
| Net interest margin - fully taxable equivalent (non-GAAP) (2) | 2.54 | 2.57 | 3.19 | (3 | ) | (65 | ) | ||||||||||||
| Net overhead ratio (4) | 1.12 | 0.87 | 1.53 | 25 | (41 | ) | |||||||||||||
| Return on average assets | 0.92 | 0.99 | 0.96 | (7 | ) | (4 | ) | ||||||||||||
| Return on average common equity | 10.30 | 10.66 | 9.52 | (36 | ) | 78 | |||||||||||||
| Return on average tangible common equity (non-GAAP) (2) | 12.95 | 13.43 | 12.17 | (48 | ) | 78 | |||||||||||||
| At end of period | |||||||||||||||||||
| Total assets | $ | 45,080,768 | $ | 43,731,718 | $ | 36,620,583 | 12 | % | 23 | % | |||||||||
| Total loans (5) | 32,079,073 | 32,135,555 | 26,800,290 | (1 | ) | 20 | |||||||||||||
| Total deposits | 37,092,651 | 35,844,422 | 30,107,138 | 16 | 23 | ||||||||||||||
| Total shareholders’ equity | 4,115,995 | 4,074,089 | 3,691,250 | 13 | 12 | ||||||||||||||
(1) Period-end balance sheet percentage changes are annualized.
(2) See "Supplemental Non-GAAP Financial Measures/Ratios" at Table 18 for additional information on this performance measure/ratio.
(3) Net revenue is net interest income plus non-interest income.
(4) The net overhead ratio is calculated by netting total non-interest expense and total non-interest income, annualizing this amount, and dividing by that period's average total assets. A lower ratio indicates a higher degree of efficiency.
(5) Excludes mortgage loans held-for-sale.
Certain returns, yields, performance ratios, or quarterly growth rates are “annualized” in this presentation to represent an annual time period. This is done for analytical purposes to better discern, for decision-making purposes, underlying performance trends when compared to full-year or year-over-year amounts. For example, a
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) | 2020 | 2020 | 2020 | 2020 | 2019 | |||||||||||||||
| Assets | ||||||||||||||||||||
| Cash and due from banks | $ | 322,415 | $ | 308,639 | $ | 344,999 | $ | 349,118 | $ | 286,167 | ||||||||||
| Federal funds sold and securities purchased under resale agreements | 59 | 56 | 58 | 309 | 309 | |||||||||||||||
| Interest-bearing deposits with banks | 4,802,527 | 3,825,823 | 4,015,072 | 1,943,743 | 2,164,560 | |||||||||||||||
| Available-for-sale securities, at fair value | 3,055,839 | 2,946,459 | 3,194,961 | 3,570,959 | 3,106,214 | |||||||||||||||
| Held-to-maturity securities, at amortized cost | 579,138 | 560,267 | 728,465 | 865,376 | 1,134,400 | |||||||||||||||
| Trading account securities | 671 | 1,720 | 890 | 2,257 | 1,068 | |||||||||||||||
| Equity securities with readily determinable fair value | 90,862 | 54,398 | 52,460 | 47,310 | 50,840 | |||||||||||||||
| Federal Home Loan Bank and Federal Reserve Bank stock | 135,588 | 135,568 | 135,571 | 134,546 | 100,739 | |||||||||||||||
| Brokerage customer receivables | 17,436 | 16,818 | 14,623 | 16,293 | 16,573 | |||||||||||||||
| Mortgage loans held-for-sale | 1,272,090 | 959,671 | 833,163 | 656,934 | 377,313 | |||||||||||||||
| Loans, net of unearned income | 32,079,073 | 32,135,555 | 31,402,903 | 27,807,321 | 26,800,290 | |||||||||||||||
| Allowance for loan losses | (319,374 | ) | (325,959 | ) | (313,510 | ) | (216,050 | ) | (156,828 | ) | ||||||||||
| Net loans | 31,759,699 | 31,809,596 | 31,089,393 | 27,591,271 | 26,643,462 | |||||||||||||||
| Premises and equipment, net | 768,808 | 774,288 | 769,909 | 764,583 | 754,328 | |||||||||||||||
| Lease investments, net | 242,434 | 230,373 | 237,040 | 207,147 | 231,192 | |||||||||||||||
| Accrued interest receivable and other assets | 1,351,455 | 1,424,728 | 1,437,832 | 1,460,168 | 1,061,141 | |||||||||||||||
| Trade date securities receivable | — | — | — | 502,207 | — | |||||||||||||||
| Goodwill | 645,707 | 644,644 | 644,213 | 643,441 | 645,220 | |||||||||||||||
| Other intangible assets | 36,040 | 38,670 | 41,368 | 44,185 | 47,057 | |||||||||||||||
| Total assets | $ | 45,080,768 | $ | 43,731,718 | $ | 43,540,017 | $ | 38,799,847 | $ | 36,620,583 | ||||||||||
| Liabilities and Shareholders’ Equity | ||||||||||||||||||||
| Deposits: | ||||||||||||||||||||
| Non-interest bearing | $ | 11,748,455 | $ | 10,409,747 | $ | 10,204,791 | $ | 7,556,755 | $ | 7,216,758 | ||||||||||
| Interest bearing | 25,344,196 | 25,434,675 | 25,447,083 | 23,904,905 | 22,890,380 | |||||||||||||||
| Total deposits | 37,092,651 | 35,844,422 | 35,651,874 | 31,461,660 | 30,107,138 | |||||||||||||||
| Federal Home Loan Bank advances | 1,228,429 | 1,228,422 | 1,228,416 | 1,174,894 | 674,870 | |||||||||||||||
| Other borrowings | 518,928 | 507,395 | 508,535 | 487,503 | 418,174 | |||||||||||||||
| Subordinated notes | 436,506 | 436,385 | 436,298 | 436,179 | 436,095 | |||||||||||||||
| Junior subordinated debentures | 253,566 | 253,566 | 253,566 | 253,566 | 253,566 | |||||||||||||||
| Trade date securities payable | 200,907 | — | — | — | — | |||||||||||||||
| Accrued interest payable and other liabilities | 1,233,786 | 1,387,439 | 1,471,110 | 1,285,652 | 1,039,490 | |||||||||||||||
| Total liabilities | 40,964,773 | 39,657,629 | 39,549,799 | 35,099,454 | 32,929,333 | |||||||||||||||
| Shareholders’ Equity: | ||||||||||||||||||||
| Preferred stock | 412,500 | 412,500 | 412,500 | 125,000 | 125,000 | |||||||||||||||
| Common stock | 58,473 | 58,323 | 58,294 | 58,266 | 57,951 | |||||||||||||||
| Surplus | 1,649,990 | 1,647,049 | 1,643,864 | 1,652,063 | 1,650,278 | |||||||||||||||
| Treasury stock | (100,363 | ) | (44,891 | ) | (44,891 | ) | (44,891 | ) | (6,931 | ) | ||||||||||
| Retained earnings | 2,080,013 | 2,001,949 | 1,921,048 | 1,917,558 | 1,899,630 | |||||||||||||||
| Accumulated other comprehensive income (loss) | 15,382 | (841 | ) | (597 | ) | (7,603 | ) | (34,678 | ) | |||||||||||
| Total shareholders’ equity | 4,115,995 | 4,074,089 | 3,990,218 | 3,700,393 | 3,691,250 | |||||||||||||||
| Total liabilities and shareholders’ equity | $ | 45,080,768 | $ | 43,731,718 | $ | 43,540,017 | $ | 38,799,847 | $ | 36,620,583 | ||||||||||
WINTRUST FINANCIAL CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED)
| Three Months Ended | Years Ended | |||||||||||||||||||||||||
| (In thousands, except per share data) | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Dec 31, 2020 | Dec 31, 2019 | |||||||||||||||||||
| Interest income | ||||||||||||||||||||||||||
| Interest and fees on loans | $ | 280,185 | $ | 280,479 | $ | 294,746 | $ | 301,839 | $ | 308,055 | $ | 1,157,249 | $ | 1,228,480 | ||||||||||||
| Mortgage loans held-for-sale | 6,357 | 5,791 | 4,764 | 3,165 | 3,201 | 20,077 | 11,992 | |||||||||||||||||||
| Interest-bearing deposits with banks | 1,294 | 1,181 | 1,310 | 4,768 | 8,971 | 8,553 | 29,803 | |||||||||||||||||||
| Federal funds sold and securities purchased under resale agreements | — | — | 16 | 86 | 390 | 102 | 700 | |||||||||||||||||||
| Investment securities | 18,243 | 21,819 | 27,105 | 32,467 | 27,611 | 99,634 | 108,046 | |||||||||||||||||||
| Trading account securities | 11 | 6 | 13 | 7 | 6 | 37 | 39 | |||||||||||||||||||
| Federal Home Loan Bank and Federal Reserve Bank stock | 1,775 | 1,774 | 1,765 | 1,577 | 1,328 | 6,891 | 5,416 | |||||||||||||||||||
| Brokerage customer receivables | 116 | 106 | 97 | 158 | 169 | 477 | 666 | |||||||||||||||||||
| Total interest income | 307,981 | 311,156 | 329,816 | 344,067 | 349,731 | 1,293,020 | 1,385,142 | |||||||||||||||||||
| Interest expense | ||||||||||||||||||||||||||
| Interest on deposits | 32,602 | 39,084 | 50,057 | 67,435 | 74,724 | 189,178 | 278,892 | |||||||||||||||||||
| Interest on Federal Home Loan Bank advances | 4,952 | 4,947 | 4,934 | 3,360 | 1,461 | 18,193 | 9,878 | |||||||||||||||||||
| Interest on other borrowings | 2,779 | 3,012 | 3,436 | 3,546 | 3,273 | 12,773 | 13,897 | |||||||||||||||||||
| Interest on subordinated notes | 5,509 | 5,474 | 5,506 | 5,472 | 5,504 | 21,961 | 15,555 | |||||||||||||||||||
| Interest on junior subordinated debentures | 2,742 | 2,703 | 2,752 | 2,811 | 2,890 | 11,008 | 12,001 | |||||||||||||||||||
| Total interest expense | 48,584 | 55,220 | 66,685 | 82,624 | 87,852 | 253,113 | 330,223 | |||||||||||||||||||
| Net interest income | 259,397 | 255,936 | 263,131 | 261,443 | 261,879 | 1,039,907 | 1,054,919 | |||||||||||||||||||
| Provision for credit losses | 1,180 | 25,026 | 135,053 | 52,961 | 7,826 | 214,220 | 53,864 | |||||||||||||||||||
| Net interest income after provision for credit losses | 258,217 | 230,910 | 128,078 | 208,482 | 254,053 | 825,687 | 1,001,055 | |||||||||||||||||||
| Non-interest income | ||||||||||||||||||||||||||
| Wealth management | 26,802 | 24,957 | 22,636 | 25,941 | 24,999 | 100,336 | 97,114 | |||||||||||||||||||
| Mortgage banking | 86,819 | 108,544 | 102,324 | 48,326 | 47,860 | 346,013 | 154,293 | |||||||||||||||||||
| Service charges on deposit accounts | 11,841 | 11,497 | 10,420 | 11,265 | 10,973 | 45,023 | 39,070 | |||||||||||||||||||
| Gains (losses) on investment securities, net | 1,214 | 411 | 808 | (4,359 | ) | 587 | (1,926 | ) | 3,525 | |||||||||||||||||
| Fees from covered call options | — | — | — | 2,292 | 1,243 | 2,292 | 3,670 | |||||||||||||||||||
| Trading (losses) gains, net | (102 | ) | 183 | (634 | ) | (451 | ) | 46 | (1,004 | ) | (158 | ) | ||||||||||||||
| Operating lease income, net | 12,118 | 11,717 | 11,785 | 11,984 | 12,487 | 47,604 | 47,041 | |||||||||||||||||||
| Other | 19,669 | 13,284 | 14,654 | 18,244 | 14,025 | 65,851 | 62,617 | |||||||||||||||||||
| Total non-interest income | 158,361 | 170,593 | 161,993 | 113,242 | 112,220 | 604,189 | 407,172 | |||||||||||||||||||
| Non-interest expense | ||||||||||||||||||||||||||
| Salaries and employee benefits | 171,116 | 164,042 | 154,156 | 136,762 | 145,941 | 626,076 | 546,420 | |||||||||||||||||||
| Equipment | 20,565 | 17,251 | 15,846 | 14,834 | 14,485 | 68,496 | 52,328 | |||||||||||||||||||
| Operating lease equipment depreciation | 9,938 | 9,425 | 9,292 | 9,260 | 9,766 | 37,915 | 35,760 | |||||||||||||||||||
| Occupancy, net | 19,687 | 15,830 | 16,893 | 17,547 | 17,132 | 69,957 | 64,289 | |||||||||||||||||||
| Data processing | 5,728 | 5,689 | 10,406 | 8,373 | 7,569 | 30,196 | 27,820 | |||||||||||||||||||
| Advertising and marketing | 9,850 | 7,880 | 7,704 | 10,862 | 12,517 | 36,296 | 48,595 | |||||||||||||||||||
| Professional fees | 6,530 | 6,488 | 7,687 | 6,721 | 7,650 | 27,426 | 27,471 | |||||||||||||||||||
| Amortization of other intangible assets | 2,634 | 2,701 | 2,820 | 2,863 | 3,017 | 11,018 | 11,844 | |||||||||||||||||||
| FDIC insurance | 7,016 | 6,772 | 7,081 | 4,135 | 1,348 | 25,004 | 9,199 | |||||||||||||||||||
| OREO expense, net | (114 | ) | (168 | ) | 237 | (876 | ) | 536 | (921 | ) | 3,628 | |||||||||||||||
| Other | 28,917 | 28,309 | 27,246 | 24,160 | 29,630 | 108,632 | 100,772 | |||||||||||||||||||
| Total non-interest expense | 281,867 | 264,219 | 259,368 | 234,641 | 249,591 | 1,040,095 | 928,126 | |||||||||||||||||||
| Income before taxes | 134,711 | 137,284 | 30,703 | 87,083 | 116,682 | 389,781 | 480,101 | |||||||||||||||||||
| Income tax expense | 33,507 | 29,969 | 9,044 | 24,271 | 30,718 | 96,791 | 124,404 | |||||||||||||||||||
| Net income | $ | 101,204 | $ | 107,315 | $ | 21,659 | $ | 62,812 | $ | 85,964 | $ | 292,990 | $ | 355,697 | ||||||||||||
| Preferred stock dividends | 6,991 | 10,286 | 2,050 | 2,050 | 2,050 | 21,377 | 8,200 | |||||||||||||||||||
| Net income applicable to common shares | $ | 94,213 | $ | 97,029 | $ | 19,609 | $ | 60,762 | $ | 83,914 | $ | 271,613 | $ | 347,497 | ||||||||||||
| Net income per common share - Basic | $ | 1.64 | $ | 1.68 | $ | 0.34 | $ | 1.05 | $ | 1.46 | $ | 4.72 | $ | 6.11 | ||||||||||||
| Net income per common share - Diluted | $ | 1.63 | $ | 1.67 | $ | 0.34 | $ | 1.04 | $ | 1.44 | $ | 4.68 | $ | 6.03 | ||||||||||||
| Cash dividends declared per common share | $ | 0.28 | $ | 0.28 | $ | 0.28 | $ | 0.28 | $ | 0.25 | $ | 1.12 | $ | 1.00 | ||||||||||||
| Weighted average common shares outstanding | 57,309 | 57,597 | 57,567 | 57,620 | 57,538 | 57,523 | 56,857 | |||||||||||||||||||
| Dilutive potential common shares | 588 | 449 | 414 | 575 | 874 | 496 | 762 | |||||||||||||||||||
| Average common shares and dilutive common shares | 57,897 | 58,046 | 57,981 | 58,195 | 58,412 | 58,019 | 57,619 | |||||||||||||||||||
TABLE 1: LOAN PORTFOLIO MIX AND GROWTH RATES AND COMMERCIAL REAL ESTATE BY STATE
| % Growth From | ||||||||||||||||||||||||
| (Dollars in thousands) | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2020 (1) | Dec 31, 2019 | |||||||||||||||||
| Balance: | ||||||||||||||||||||||||
| Mortgage loans held-for-sale, excluding early buy-out exercised loans guaranteed by U.S. Government Agencies | $ | 927,307 | $ | 862,924 | $ | 814,667 | $ | 642,386 | $ | 361,309 | 30 | % | 157 | % | ||||||||||
| Mortgage loans held-for-sale, early buy-out exercised loans guaranteed by U.S. Government Agencies | 344,783 | 96,747 | 18,496 | 14,548 | 16,004 | 1020 | 2054 | |||||||||||||||||
| Total mortgage loans held-for-sale | $ | 1,272,090 | $ | 959,671 | $ | 833,163 | $ | 656,934 | $ | 377,313 | 130 | % | 237 | % | ||||||||||
| Commercial | ||||||||||||||||||||||||
| Commercial, industrial, and other | $ | 9,240,046 | $ | 8,897,986 | $ | 8,523,864 | $ | 9,025,886 | $ | 8,285,920 | 15 | % | 12 | % | ||||||||||
| Commercial PPP loans | 2,715,921 | 3,379,013 | 3,335,368 | — | — | (78 | ) | 100 | ||||||||||||||||
| Commercial real estate | ||||||||||||||||||||||||
| Construction and development | 1,371,802 | 1,333,149 | 1,285,282 | 1,237,274 | 1,200,783 | 12 | 14 | |||||||||||||||||
| Non-construction | 7,122,330 | 7,089,993 | 6,915,463 | 6,948,257 | 6,819,493 | 2 | 4 | |||||||||||||||||
| Home equity | 425,263 | 446,274 | 466,596 | 494,655 | 513,066 | (19 | ) | (17 | ) | |||||||||||||||
| Residential real estate | ||||||||||||||||||||||||
| Residential real estate loans for investment | 1,214,744 | 1,143,908 | 1,186,768 | 1,244,690 | 1,231,123 | 25 | (1 | ) | ||||||||||||||||
| Residential mortgage loans, early buy-out eligible loans guaranteed by U.S. Government Agencies | 44,854 | 240,902 | 240,661 | 132,699 | 123,098 | (324 | ) | (64 | ) | |||||||||||||||
| Premium Finance receivables | ||||||||||||||||||||||||
| Commercial insurance | 4,054,489 | 4,060,144 | 3,999,774 | 3,465,055 | 3,442,027 | (1 | ) | 18 | ||||||||||||||||
| Life insurance | 5,857,436 | 5,488,832 | 5,400,802 | 5,221,639 | 5,074,602 | 27 | 15 | |||||||||||||||||
| Consumer and other | 32,188 | 55,354 | 48,325 | 37,166 | 110,178 | (166 | ) | (71 | ) | |||||||||||||||
| Total loans, net of unearned income | $ | 32,079,073 | $ | 32,135,555 | $ | 31,402,903 | $ | 27,807,321 | $ | 26,800,290 | (1 | )% | 20 | % | ||||||||||
| Mix: | ||||||||||||||||||||||||
| Mortgage loans held-for-sale, excluding early buy-out exercised loans guaranteed by U.S. Government Agencies | 73 | % | 90 | % | 98 | % | 98 | % | 96 | % | ||||||||||||||
| Mortgage loans held-for-sale, early buy-out exercised loans guaranteed by U.S. Government Agencies | 27 | 10 | 2 | 2 | 4 | |||||||||||||||||||
| Total mortgage loans held-for-sale | 100 | % | 100 | % | 100 | % | 100 | % | 100 | % | ||||||||||||||
| Commercial | ||||||||||||||||||||||||
| Commercial, industrial, and other | 29 | % | 28 | % | 28 | % | 32 | % | 31 | % | ||||||||||||||
| Commercial PPP loans | 8 | 11 | 11 | — | — | |||||||||||||||||||
| Commercial real estate | ||||||||||||||||||||||||
| Construction and development | 4 | 4 | 4 | 4 | 4 | |||||||||||||||||||
| Non-construction | 22 | 22 | 22 | 25 | 26 | |||||||||||||||||||
| Home equity | 1 | 1 | 1 | 2 | 2 | |||||||||||||||||||
| Residential real estate | ||||||||||||||||||||||||
| Residential real estate loans for investment | 4 | 3 | 3 | 4 | 5 | |||||||||||||||||||
| Residential mortgage loans, early buy-out eligible loans guaranteed by U.S. Government Agencies | 1 | 1 | 1 | 1 | 0 | |||||||||||||||||||
| Premium Finance receivables | ||||||||||||||||||||||||
| Commercial insurance | 13 | 13 | 13 | 13 | 13 | |||||||||||||||||||
| Life insurance | 18 | 17 | 17 | 19 | 19 | |||||||||||||||||||
| Consumer and other | 0 | 0 | 0 | 0 | 0 |
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"name": "Wintrust Financial Corporation Reports Fourth Quarter 2020 Net Income of $101.2 million and Full-Year 2020 Net Income of $293.0 million FAQs",
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{
"@type": "Question",
"name": "What were Wintrust Financial Corporation's Q4 2020 earnings?",
"acceptedAnswer": {
"@type": "Answer",
"text": "Wintrust reported a net income of $101.2 million or $1.63 per diluted common share for Q4 2020."
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"@type": "Question",
"name": "How did Wintrust's total assets change in Q4 2020?",
"acceptedAnswer": {
"@type": "Answer",
"text": "Total assets increased by $1.3 billion in Q4 2020."
}
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"@type": "Question",
"name": "What was the total deposit growth for Wintrust in Q4 2020?",
"acceptedAnswer": {
"@type": "Answer",
"text": "Total deposits grew by $1.2 billion in Q4 2020."
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{
"@type": "Question",
"name": "How did mortgage banking revenue perform in Q4 2020?",
"acceptedAnswer": {
"@type": "Answer",
"text": "Mortgage banking revenue decreased by $21.7 million in Q4 2020."
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"@type": "Question",
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FAQ
What were Wintrust Financial Corporation's Q4 2020 earnings?
Wintrust reported a net income of $101.2 million or $1.63 per diluted common share for Q4 2020.
How did Wintrust's total assets change in Q4 2020?
Total assets increased by $1.3 billion in Q4 2020.
What was the total deposit growth for Wintrust in Q4 2020?
Total deposits grew by $1.2 billion in Q4 2020.
How did mortgage banking revenue perform in Q4 2020?
Mortgage banking revenue decreased by $21.7 million in Q4 2020.
What is the current status of Wintrust Financial's non-performing loans?
Non-performing loans decreased by 26% as of December 31, 2020.
Wintrust Financial Corp
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Banks - Regional
State Commercial Banks
United States of America
ROSEMONT
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