STOCK TITAN
  1. Home
  2. News
  3. WTFC

Wintrust Financial Corporation Reports Second Quarter 2020 Net Income of $21.7 million and Year-to-Date Net Income of $84.5 million

Rhea-AI Impact
(Neutral)
Rhea-AI Sentiment
(Neutral)
Tags
Rhea-AI Summary

Wintrust Financial Corporation (WTFC) reported a net income of $21.7 million, or $0.34 per share, for Q2 2020, marking a 67.3% decrease from Q1 2020 and a 75.4% drop year-over-year. However, total assets increased by $4.7 billion, supported by $3.3 billion in Paycheck Protection Program (PPP) loans. Despite higher mortgage banking revenues of $102.3 million, credit losses rose to $135.1 million amid economic challenges. The company's loans to deposits ratio stood at 88.1%, and they completed a preferred stock issuance yielding $278.4 million. CEO Wehmer emphasized commitment to community support amid COVID-19 challenges.

Positive
  • Total assets increased by $4.7 billion.
  • Mortgage banking revenue rose to $102.3 million.
  • Successfully originated $3.4 billion in PPP loans, generating $91.0 million in net fees.
  • Completed preferred stock issuance, raising $278.4 million.
Negative
  • Net income decreased by 67.3% from the previous quarter.
  • Provision for credit losses increased to $135.1 million.
  • Non-performing assets rose to $198.5 million or 0.46% of total assets.

ROSEMONT, Ill., July 21, 2020 (GLOBE NEWSWIRE) -- Wintrust Financial Corporation (“Wintrust” or “the Company”) (Nasdaq: WTFC) announced net income of $21.7 million or $0.34 per diluted common share for the second quarter of 2020, a decrease in diluted earnings per common share of 67.3% compared to the prior quarter and a decrease of 75.4% compared to the second quarter of 2019. The Company recorded net income of $84.5 million or $1.38 per diluted common share for the first six months of 2020 compared to net income of $170.6 million or $2.91 per diluted common share for the same period of 2019.

Highlights of the Second Quarter of 2020:
Comparative information to the first quarter of 2020

  • Total assets increased by $4.7 billion, including $3.3 billion of Paycheck Protection Program ("PPP") loans, net of fees.
  • Total loans increased by $3.6 billion, including $3.3 billion of PPP loans, net of fees.
    ° Lines of credit utilization declined to approximately 49% at June 30, 2020 as compared to approximately 56% at March 31, 2020.
  • Total deposits increased by $4.2 billion, primarily related to both PPP lending and organic growth of retail deposits.
  • Net interest income increased by $1.7 million as the impact of a $5.1 billion increase in average earning assets was partially offset by a 39 basis point decline in net interest margin. The decline in net interest margin was largely due to declining interest rates and excess short–term liquidity on the balance sheet.
  • The loans to deposits ratio ended the second quarter of 2020 at 88.1% as compared to 88.4% at prior quarter end. Excluding PPP loans, the loans to deposits ratio ended the second quarter of 2020 at 78.7%.
  • Mortgage banking revenue increased by $54.0 million to $102.3 million for the second quarter of 2020 as compared to $48.3 million in the prior quarter.
    ° Loans originated for sale in the second quarter of 2020 totaled $2.2 billion as compared to $1.2 billion in the prior quarter.
    ° Recorded a decrease in the value of mortgage servicing rights related to changes in fair value model assumptions, net of derivative contract activity held as an economic hedge, of $7.4 million in the second quarter of 2020 as compared to a decline of $10.4 million in the prior quarter.
    ° Accrued $7.2 million of additional contingent consideration expense related to the previous acquisitions of mortgage operations in the second quarter of 2020 as compared to $329,000 in the prior quarter, which was recorded in other non-interest expense.
  • Provision for credit losses of $135.1 million in the second quarter of 2020. Provision for credit losses increased by $82.1 million from $53.0 million in the first quarter of 2020. The increased provision for credit losses expense in the second quarter of 2020 was primarily related to generally deteriorating forecasted economic conditions impacted by the COVID-19 pandemic which are an input in the Company's Current Expected Credit Loss ("CECL") models.
  • Recorded net charge-offs of $15.4 million in the second quarter of 2020, of which $9.5 million were previously reserved for, as compared to net charge-offs of $5.3 million in the first quarter of 2020.
  • Non-performing assets totaled $198.5 million as of June 30, 2020, or 0.46% of total assets, as compared to $190.4 million, or 0.49% of total assets, as of the prior quarter end.
  • The allowance for credit losses on our core loan portfolio is approximately 1.85% of the outstanding balance as of June 30, 2020, up from 1.26% as of the prior quarter end.
  • Incurred acquisition related costs of $4.9 million in the second quarter of 2020 as compared to $1.7 million in the first quarter of 2020.

Other highlights of the second quarter of 2020

  • Paid $2.6 million of COVID-19 related salary incentives to non-executive personnel.
  • Originated $3.4 billion of PPP loans which generated net fees of $91.0 million to be recognized over the estimated life of the PPP loans. Fees are recognized on a level yield basis which incorporates estimates of the timing of customer requested forgiveness, Small Business Administration ("SBA") approval of forgiveness and the repayment timing from the SBA.
  • Recorded COVID-19 related loan modifications for customers with aggregate outstanding balances of approximately $1.7 billion or 9% of total loans, excluding PPP loans and premium finance receivables. The modifications primarily changed terms to interest-only payments or full payment deferrals.
  • Completed a preferred stock issuance which generated proceeds of $278.4 million, net of the underwriting discount, which contributed to increasing estimated Tier 1 and Total Capital ratios to 10.1% and 12.8%, respectively.

Edward J. Wehmer, Founder and Chief Executive Officer, commented, "I am very proud of the extraordinary effort put forth by our employees to support our customers and our communities amid the challenges of COVID-19. Wintrust reported net income of $21.7 million for the second quarter of 2020, down from $62.8 million in the first quarter of 2020. However, pre-tax income, excluding provision for credit losses and MSR valuation adjustments (non-GAAP), increased by $22.7 million over the previous quarter and $35.0 million over the second quarter of 2019. The Company experienced strong balance sheet growth as total assets were $4.7 billion higher than the prior quarter end and $9.9 billion higher than the end of the second quarter of 2019. The second quarter of 2020 was characterized by significant balance sheet growth, declining net interest margin, strong mortgage banking revenue, increased provision for credit losses and a continued focus to increase franchise value in our market area."

Mr. Wehmer continued, "The Company grew total loans by $3.6 billion in the second quarter of 2020 including $3.3 billion related to PPP lending. The Company experienced significant growth in its commercial insurance premium finance and life insurance premium finance receivable portfolios partially offset by a decline in its commercial portfolio. Growth in the commercial insurance premium finance portfolio was in part due to hardening insurance market conditions driving the average size of new commercial insurance premium finance receivables to approximately $38,000 in the second quarter as compared to $31,000 in the first quarter of 2020. The decline in the commercial loan portfolio is primarily attributed to paydowns in the second quarter of 2020 related to both existing customers receiving PPP loans and repayment of balances that were drawn in the first quarter of 2020. As a result, credit line utilization was approximately 49% at June 30, 2020 as compared to approximately 56% at March 31, 2020. Total deposits increased by $4.2 billion as compared to the first quarter of 2020 including $2.6 billion of non-interest bearing deposit growth primarily related to PPP lending. In addition, the Company continued to grow organic retail deposits including its MaxSafeTM deposit products which grew by $482 million in the second quarter of 2020. Our loans to deposits ratio ended the quarter at 88.1% and we are confident that we have sufficient liquidity to meet customer loan demand."

Mr. Wehmer commented, "Net interest income increased in the second quarter of 2020 primarily due to earning asset growth but was partially offset by a 39 basis point decline in the net interest margin. The decline in net interest margin was primarily due to downward repricing of variable rate loans and an increase in interest bearing cash balances, partially offset by favorable repricing of interest bearing deposits and accretion of PPP fees. At this point, the majority of our variable rate loan portfolio has repriced to reflect the low interest rate environment. As such, excluding the impact of PPP fees, we expect to be able to mitigate potential future loan yield compression with improvement in pricing on interest bearing deposits. Further, to the extent we identify prudent opportunities to deploy excess liquidity, we may be able to improve net interest margin."

Mr. Wehmer noted, “Our mortgage banking business delivered a record 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 second quarter of 2020 were $2.2 billion, as compared to $1.2 billion in the first quarter of 2020. As a result of increases in both current and forecasted revenues given the favorable mortgage banking environment, the Company recorded increased contingent consideration expense related to the previous acquisitions of mortgage operations. Additionally, the Company recorded a $7.4 million decrease in the value of mortgage servicing rights related to changes in fair value model assumptions, net of derivative contract activity held as an economic hedge. We are leveraging efficiencies in our delivery channels and staffing strategies to keep pace with unprecedented demand. The strong quarter of mortgage performance contributed to reporting a 0.93% net overhead ratio for the second quarter of 2020. We believe the third quarter of 2020 will provide another strong quarter for mortgage banking production."

Commenting on credit quality, Mr. Wehmer stated, "The Company recorded provision for credit losses of $135.1 million in the second quarter primarily related to generally deteriorating forecasted economic conditions impacted by the COVID-19 pandemic. Net charge-offs totaled $15.4 million in the second quarter of 2020, of which $9.5 million were previously reserved for, as compared to $5.3 million in the first quarter of 2020. The level of non-performing assets increased by $8.1 million to $198.5 million. The allowance for credit losses on our core loan portfolio is approximately 1.85% of the outstanding balance. We believe that the Company’s reserves remain appropriate and we remain diligent in our review of credit."

Mindful of the challenges ahead, Mr. Wehmer noted, "We leverage robust capital and liquidity management frameworks, which include stress testing processes, to assess and monitor risk and inform decision making. In the second quarter of 2020, we completed a preferred stock issuance to bolster our capital position. We believe the Company has adequate liquidity and capital to effectively manage through the COVID-19 pandemic."

Mr. Wehmer concluded, "We remain committed to supporting our community, including the well-being and safety of our customers and employees. We believe that our opportunities for both internal and external growth remain consistently strong and were particularly enhanced as a result of our successful participation in PPP lending. However, we continue to carefully monitor the COVID-19 pandemic and evaluate the impact that it could have on the economy, our customers and our business. We remain focused on navigating the current environment by actively monitoring and managing our credit portfolio."

The graphs below illustrate certain financial highlights of the second quarter of 2020. 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.

A PDF accompanying this announcement can be found at http://ml.globenewswire.com/Resource/Download/33d15dc8-146d-4f4d-b842-5c498ea282c9

SUMMARY OF RESULTS:

BALANCE SHEET

Total asset growth of $4.7 billion in the second quarter of 2020 was primarily comprised of a $3.6 billion increase in loans and a $2.1 billion increase in interest bearing deposits with banks, partially offset by a $513 million decrease in investment securities and a $502 million decrease in trade date securities receivables. The Company believes that the $4.0 billion of interest bearing deposits with banks held as of June 30, 2020 provides more than sufficient liquidity to operate its business plan.

Total liabilities grew by $4.5 billion in the second quarter of 2020 resulting primarily from a $4.2 billion increase in total deposits. The increase in deposits included $2.6 billion of non-interest bearing deposit growth primarily related to PPP funding. In addition, the Company successfully grew deposits in the second quarter through organic retail channels including continued success of MaxSafeTM deposit products which grew by $482 million in the second quarter. Our loans to deposits ratio ended the quarter at 88.1%. Management believes in substantially funding the Company's balance sheet with core deposits and utilizes brokered or wholesale funding sources as appropriate to manage its liquidity position as well as for interest rate risk management purposes.

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

NET INTEREST INCOME

For the second quarter of 2020, net interest income totaled $263.1 million, an increase of $1.7 million as compared to the first quarter of 2020 and a decrease of $3.1 million as compared to the second quarter of 2019. The $1.7 million increase in net interest income in the second quarter of 2020 compared to the first quarter of 2020 was attributable to the impact of a $5.1 billion increase in average earning assets. This impact was partially offset by a 39 basis point decline in net interest margin.

Net interest margin was 2.73% (2.74% on a fully taxable-equivalent basis, non-GAAP) during the second quarter of 2020 compared to 3.12% (3.14% on a fully taxable-equivalent basis, non-GAAP) during the first quarter of 2020 and 3.62% (3.64% on a fully taxable-equivalent basis, non-GAAP) during the second quarter of 2019. The 39 basis point decrease in net interest margin in the second quarter of 2020 as compared to the first quarter of 2020 was attributable to a 68 basis point decline in the yield on earnings assets and a seven basis point decrease in the net free funds contribution partially offset by a 36 basis point decrease in the rate paid on interest bearing liabilities. The 68 basis point decline in the yield on earning assets in the second quarter as compared to the first quarter of 2020 was primarily due to a 60 basis point decline in the yield on loans along with an increased balance and reduced yield on interest bearing cash. The 36 basis point decrease in the rate paid on interest bearing liabilities in the second quarter as compared to the prior quarter is primarily due to a 39 basis point decrease in the rate paid on interest bearing deposits as management initiated various deposit rate reductions given the decreased interest rate environment.

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

ASSET QUALITY

The allowance for credit losses totaled $373.2 million as of June 30, 2020 an increase of $119.7 million as compared to $253.5 million as of March 31, 2020. A summary of the allowance for loan losses calculated for the loan components in the core loan portfolio, the niche and consumer loan portfolio and purchased loan portfolio as of June 30, 2020 and March 31, 2020 is shown on Table 12 of this report.

The provision for credit losses totaled $135.1 million for the second quarter of 2020 compared to $53.0 million for the first quarter of 2020 and $24.6 million for the second quarter of 2019.  The increased provision for credit losses expense in the second quarter was primarily related to generally deteriorating forecasted economic conditions impacted by the COVID-19 pandemic. Specifically, the negative impact of the COVID-19 pandemic on the projected commercial real-estate price index materially impacted the modeled losses from the commercial real-estate portfolio. Management believes the allowance for credit losses is appropriate to account for expected credit losses. The 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. For more information regarding the provision for credit losses, see Table 11 in this report.

Net charge-offs totaled $15.4 million in the second quarter of 2020, a $10.1 million increase from $5.3 million in the first quarter of 2020 and a $6.9 million decrease from $22.3 million in the second quarter of 2019. Net charge-offs as a percentage of average total loans, in the second quarter of 2020 totaled 20 basis points on an annualized basis compared to eight basis points on an annualized basis in the first quarter of 2020 and 36 basis points on an annualized basis in the second quarter of 2019. For more information regarding net charge-offs, see Table 10 in this report.

As of June 30, 2020, $79.3 million of all loans, or 0.3%, were 60 to 89 days past due and $166.4 million, or 0.5%, were 30 to 59 days (or one payment) past due. As of March 31, 2020, $33.0 million of all loans, or 0.1%, were 60 to 89 days past due and $262.7 million, or 0.9%, were 30 to 59 days (or one payment) past due. Many of the commercial and commercial real-estate loans shown as 60 to 89 days and 30 to 59 days past due are included on the Company’s internal problem loan reporting system. Loans on this system are closely monitored by management on a monthly basis.

The Company’s home equity and residential loan portfolios continue to exhibit low delinquency rates as of June 30, 2020. Home equity loans at June 30, 2020 that are current with regard to the contractual terms of the loan agreement represent 98.2% of the total home equity portfolio. Residential real estate loans at June 30, 2020 that are current with regards to the contractual terms of the loan agreements comprised 98.2% of total residential real estate loans outstanding. For more information regarding past due loans, see Table 13 in this report.

In the second quarter of 2020, the Company recorded $1.7 billion of COVID-19 related loan modifications. These loan modifications were comprised primarily of $882.1 million commercial loans and $822.6 million commercial real-estate loans. The modifications primarily changed terms to interest-only payments or full payment deferrals.

Prior to January 1, 2020, purchased credit impaired ("PCI") loans were aggregated into pools by common risk characteristics for accounting purposes, including recognition of interest income on a pool basis. Measurement of any allowance for loan losses on these loans were offset by the remaining credit discount related to the pool.  As a result of the implementation of CECL, beginning in the first quarter of 2020, PCI loans transitioned to a classification of purchased financial assets with credit deterioration ("PCD"), which no longer maintains the prior pools and related accounting concepts. Measurement of any allowance for loan losses on PCD loans is no longer offset by the remaining discount, resulting in additional allowance being recognized at January 1, 2020 through a cumulative effect adjustment to retained earnings. See Table 10 for information on this increase at transition. Additionally, recognition of interest income on PCD loans is considered at the individual asset level following the Company's accrual policies, instead of based upon the entire pool of loans. Due to the first quarter of 2020 adoption of CECL, the Company included $30.3 million in non-performing PCD loans in total non-performing loans as of June 30, 2020.

The ratio of non-performing assets to total assets was 0.46% as of June 30, 2020, compared to 0.49% at March 31, 2020, and 0.40% at June 30, 2019. Non-performing assets totaled $198.5 million at June 30, 2020, compared to $190.4 million at March 31, 2020 and $133.5 million at June 30, 2019. Non-performing loans totaled $188.3 million, or 0.60% of total loans, at June 30, 2020 compared to $179.4 million, or 0.65% of total loans, at March 31, 2020 and $113.4 million, or 0.45% of total loans, at June 30, 2019. The increase in non-performing loans in the second quarter of 2020 as compared to the prior quarter is primarily due to a $14.5 million increase in total non-performing premium finance receivable balances. State emergency orders and pandemic delays on processing of return premiums, which serve as our collateral, contributed to the increase in 90 day past due premium finance receivables. Other real estate owned ("OREO") of $10.2 million at June 30, 2020 decreased by $829,000 compared to $11.0 million at March 31, 2020 and decreased $9.6 million compared to $19.8 million at June 30, 2019. Management is pursuing the resolution of all non-performing assets. At this time, management believes OREO is appropriately valued at the lower of carrying value or fair value less estimated costs to sell. For more information regarding non-performing assets, see Table 14 in this report.

NON-INTEREST INCOME

Wealth management revenue decreased by $3.3 million during the second quarter of 2020 as compared to the first quarter of 2020 primarily due to decreased asset management fees, trust fees and brokerage commissions. Declines in asset management and trust fees are  primarily due to volatile equity markets since year end. Brokerage commissions were negatively impacted in the second quarter of 2020 due to lower transactional volume as compared to the prior quarter. 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 increased by $54.0 million in the second quarter of 2020 as compared to the first quarter of 2020, primarily as a result of a $1.0 billion increase in loans originated for sale.  Loans originated for sale were $2.2 billion in the second quarter of 2020 as compared to $1.2 billion in the first quarter of 2020. The percentage of origination volume from refinancing activities was 70% in the second quarter of 2020 as compared to 63% in the first quarter of 2020. Mortgage banking revenue includes revenue from activities related to originating, selling and servicing residential real estate loans for the secondary market.

During the second quarter of 2020, the fair value of the mortgage servicing rights portfolio increased primarily due to increased capitalization of $20.4 million during the second quarter. This increase was partially offset by a negative fair value adjustment of $8.0 million as well as a reduction in value of $8.7 million due to payoffs and paydowns of the existing portfolio. The Company entered into interest rate swaps at the beginning of the fourth quarter of 2019 to economically hedge a portion of the potential negative fair value changes recorded in earnings related to its mortgage servicing rights portfolio. The Company recorded a gain of $589,000 on the interest rate swaps held as economic hedges against the mortgage servicing rights primarily related to the mark to market valuation adjustment which was recorded in mortgage banking revenue. During the second quarter of 2020, the Company terminated the interest rate swaps. No economic hedges were outstanding relative to the mortgage servicing rights portfolio at the end of the second quarter of 2020.

The net gains recognized on investment securities in the second quarter of 2020 were $808,000 as compared to a net loss of $4.4 million in the first quarter of 2020. The gains recorded in the second quarter of 2020 primarily relate to unrealized gains on market sensitive securities held by the Company.

Other non-interest income decreased by $3.6 million in the second quarter of 2020 as compared to the first quarter of 2020 primarily due to lower card and merchant services based fees, gains realized on the sales of loan and leases in the first quarter of 2020 and losses on investment partnerships in the second quarter.  These decreases were partially offset by market gains on BOLI investments related to non-qualified deferred compensation accounts recorded in BOLI income.

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 $17.4 million in the second quarter of 2020 as compared to the first quarter of 2020. The $17.4 million increase is comprised of an increase of $14.6 million in commissions and incentive compensation and an increase of $5.8 million in salaries expense partially offset by a $3.0 million decrease in employee benefits expense. The increase in commissions and incentive compensation is primarily due to increased origination volume associated with the Company's mortgage business. The increase in salaries expense is primarily related to COVID-19 related salary incentives, the impact of a full quarter of annual merit increases, increased staffing to support mortgage origination and an increase in costs related to deferred compensation plans impacted by market returns of related BOLI investments.

Data processing expenses totaled $10.4 million in the second quarter of 2020, an increase of $2.0 million as compared to the first quarter of 2020. The increase in the second quarter relates primarily to conversion costs of $4.5 million associated with the Countryside Bank acquisition as compared to $1.4 million of acquisition related conversion costs in the prior quarter. No additional material conversion charges are anticipated related to any completed acquisitions.

Advertising and marketing expenses in the second quarter of 2020 decreased by $3.2 million as compared to the first quarter of 2020 primarily related to lower sports sponsorship costs due to shortened or canceled seasons. Marketing costs are incurred to promote the Company's brand, commercial banking capabilities, 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.

FDIC insurance expense totaled $7.1 million in the second quarter of 2020, an increase of $2.9 million as compared to the first quarter of 2020. This increase is primarily due to higher assessment rates impacted by declines in the Tier 1 Leverage Ratio at the Company's bank affiliates as a result of asset growth, including PPP loans.

Miscellaneous expense in the second quarter of 2020 increased $3.6 million as compared to the first quarter of 2020. The increase in the second quarter is primarily due to $7.2 million of contingent consideration expense accrued in the second quarter, as compared to $329,000 in the prior quarter, related to the previous acquisitions of mortgage operations. The increase in the contingent consideration accrual is a result of higher anticipated payments resulting from increases in both current and forecasted revenues related to the acquired businesses due to the favorable mortgage banking environment. Miscellaneous expense includes ATM expenses, correspondent bank charges, directors fees, telephone, travel and entertainment, corporate insurance, dues and subscriptions, problem loan expenses and lending origination costs that are not deferred.

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

INCOME TAXES

The Company recorded income tax expense of $9.0 million in the second quarter of 2020 compared to $24.3 million in the first quarter of 2020 and $28.7 million in the second quarter of 2019. The effective tax rates were 29.46% in the second quarter of 2020 compared to 27.87% in the first quarter of 2020 and 26.06% in the second quarter of 2019.

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 second quarter of 2020, this unit expanded its loan and deposit portfolios. However, the banking segment also experienced net interest margin compression in part due to low and declining interest rates and possession of excess short-term liquidity.

Mortgage banking revenue was $102.3 million for the second quarter of 2020 an increase of $54.0 million as compared to the first quarter of 2020 primarily due to increased mortgage demand associated with historically low long-term interest rates. Services charges on deposit accounts totaled $10.4 million in the second quarter of 2020 a decrease of $845,000 as compared to the first quarter of 2020 primarily due to lower overdraft fees. The Company's gross commercial and commercial real estate loan pipelines remained strong as of June 30, 2020. Before the impact of scheduled payments and prepayments, gross commercial and commercial real estate loan pipelines were estimated to be approximately $1.1 billion to $1.2 billion at June 30, 2020. When adjusted for the probability of closing, the pipelines were estimated to be approximately $700 million to $800 million at June 30, 2020.

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 and accounts receivable financing, as well as value-added, out-sourced administrative services and other services. Originations within the insurance premium financing receivables portfolio were $3.1 billion during the second quarter of 2020 and average balances increased by $422.7 million as compared to the first quarter of 2020. Growth in the commercial insurance premium finance portfolio was in part due to hardening insurance market conditions driving the average size of new commercial insurance premium finance receivables to approximately $38,000 in the second quarter as compared to $31,000 in the first quarter of 2020. The increase in average balances was more than offset by margin compression in this portfolio resulting in a $4.2 million decrease in interest income attributed to the lower market rates of interest associated with the insurance premium finance receivables portfolio. The Company's leasing business grew during the second quarter of 2020, with its portfolio of assets, including capital leases, loans and equipment on operating leases, increasing by $231.2 million to $2.0 billion at the end of the second quarter of 2020. Revenues from the Company's out-sourced administrative services business were $933,000 in the second quarter of 2020, a decrease of $179,000 from the first quarter of 2020.

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 decreased by $3.3 million in the second quarter of 2020 compared to the first quarter of 2020, totaling $22.6 million in the second period. Declines in asset management and trust fees are  primarily due to volatile equity markets since year end. Brokerage commissions were negatively impacted in the second quarter of 2020 due to lower transactional volume as compared to the prior quarter.  At June 30, 2020, the Company’s wealth management subsidiaries had approximately $27.0 billion of assets under administration, which included $3.9 billion of assets owned by the Company and its subsidiary banks, representing a $2.0 billion increase from the $25.0 billion of assets under administration at March 31, 2020.

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 SBA to guarantee loans under the PPP for small businesses who meet the necessary eligibility requirements in order to keep their workers on the payroll. The Company began accepting applications on April 3, 2020. As of June 30, 2020, the Company secured authorization from the SBA and funded over 11,000 PPP loans with a carrying balance of approximately $3.3 billion.

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 $620 million in assets, including approximately $423 million in loans, and approximately $508 million in deposits. The Company recorded goodwill of approximately $40 million on the acquisition.

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 $250 million in assets, including approximately $174 million in loans, and approximately $201 million in deposits. The Company recorded goodwill of approximately $19 million on the acquisition.

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 $223 million in assets, including approximately $125 million in loans, and approximately $161 million in deposits. The Company recorded goodwill of approximately $12 million on the acquisition.

Adoption of New Credit Losses Accounting Standard

Beginning in 2020, the Company adopted the new current expected credit losses standard, or CECL, 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

Key Operating Measures

Wintrust’s key operating measures and growth rates for the second quarter of 2020, as compared to the first quarter of 2020 (sequential quarter) and second quarter of 2019 (linked quarter), are shown in the table below:

100%; border-collapse:collapse !important;">
       % or(4)
basis point  (bp) change from
1st Quarter
2020		 % or
basis point  (bp)
change from
2nd Quarter
2019
  Three Months Ended 
(Dollars in thousands, except per share data) Jun 30, 2020 Mar 31, 2020 Jun 30, 2019 
46%; width:46%; min-width:46%;">Net income1%; width:1%; min-width:1%;"> 1%; width:1%; min-width:1%;">$8%; width:8%; min-width:8%;">21,6591%; width:1%; min-width:1%;"> 1%; width:1%; min-width:1%;"> 1%; width:1%; min-width:1%;">$8%; width:8%; min-width:8%;">62,8121%; width:1%; min-width:1%;"> 1%; width:1%; min-width:1%;"> 1%; width:1%; min-width:1%;">$8%; width:8%; min-width:8%;">81,4661%; width:1%; min-width:1%;"> 8%; width:8%; min-width:8%;">(661%; width:1%; min-width:1%;">)1%; width:1%; min-width:1%;">%1%; width:1%; min-width:1%;"> 8%; width:8%; min-width:8%;">(731%; width:1%; min-width:1%;">)1%; width:1%; min-width:1%;">%
Pre-tax income, excluding provision for credit losses (non-GAAP) (2) 165,756  140,044  134,753 18   23  
Pre-tax income, excluding provision for credit losses and MSR valuation adjustments (non-GAAP) (2) 173,149  150,441  138,138 15   25  
Net income per common share – diluted 0.34  1.04  1.38 (67)  (75) 
Net revenue (1) 425,124  374,685  364,360 13   17  
Net interest income 263,131  261,443  266,202 1   (1) 
Net interest margin 2.73% 3.12% 3.62%(39)bp (89)bp
Net interest margin - fully taxable equivalent (non-GAAP) (2) 2.74  3.14  3.64 (40)  (90) 
Net overhead ratio (3) 0.93  1.33  1.64 (40)  (71) 
Return on average assets 0.21  0.69  1.02 (48)  (81) 
Return on average common equity 2.17  6.82  9.68 (465)  (751) 
Return on average tangible common equity (non-GAAP) (2) 2.95  8.73  12.28 (578)  (933) 
At end of period           
Total assets $43,540,017  $38,799,847  $33,641,769 49 % 29 %
Total loans (5) 31,402,903  27,807,321  25,304,659 52   24  
Total deposits 35,651,874  31,461,660  27,518,815 54   30  
Total shareholders’ equity 3,990,218  3,700,393  3,446,950 32   16  
  1. Net revenue is net interest income plus non-interest income.
  2. See "Supplemental Non-GAAP Financial Measures/Ratios" at Table 18  for additional information on this performance measure/ratio.
  3. 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.
  4. Period-end balance sheet percentage changes are annualized.
  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

100%; border-collapse:collapse !important;">
  Three Months EndedSix Months Ended
(Dollars in thousands, except per share data) Jun 30,
2020		 Mar 31,
2020		 Dec 31,
2019		 Sep 30,
2019		 Jun 30,
2019		Jun 30,
2020		 Jun 30,
2019
Selected Financial Condition Data (at end of period):   
Total assets $43,540,017  $38,799,847  $36,620,583  $34,911,902  $33,641,769    
Total loans (1) 31,402,903  27,807,321  26,800,290  25,710,171  25,304,659    
Total deposits 35,651,874  31,461,660  30,107,138  28,710,379  27,518,815    
Junior subordinated debentures 253,566  253,566  253,566  253,566  253,566    
Total shareholders’ equity 3,990,218  3,700,393  3,691,250  3,540,325  3,446,950    
Selected Statements of Income Data:   
31%; width:31%; min-width:31%;">Net interest income1%; width:1%; min-width:1%;"> 1%; width:1%; min-width:1%;">$7%; width:7%; min-width:7%;">263,1311%; width:1%; min-width:1%;"> 1%; width:1%; min-width:1%;"> 1%; width:1%; min-width:1%;">$7%; width:7%; min-width:7%;">261,4431%; width:1%; min-width:1%;"> 1%; width:1%; min-width:1%;"> 1%; width:1%; min-width:1%;">$7%; width:7%; min-width:7%;">261,8791%; width:1%; min-width:1%;"> 1%; width:1%; min-width:1%;"> 1%; width:1%; min-width:1%;">$7%; width:7%; min-width:7%;">264,8521%; width:1%; min-width:1%;"> 1%; width:1%; min-width:1%;"> 1%; width:1%; min-width:1%;">$7%; width:7%; min-width:7%;">266,2021%; width:1%; min-width:1%;"> 1%; width:1%; min-width:1%;">$7%; width:7%; min-width:7%;">524,5741%; width:1%; min-width:1%;"> 1%; width:1%; min-width:1%;"> 1%; width:1%; min-width:1%;">$7%; width:7%; min-width:7%;">528,1881%; width:1%; min-width:1%;"> 
Net revenue (2) 425,124  374,685  374,099  379,989  364,360 799,809  708,003 
Net income 21,659  62,812  85,964  99,121  81,466 84,471  170,612 
Pre-tax income, excluding provision for credit losses (non-GAAP) (3) 165,756  140,044  124,508  145,435  134,753 305,800  264,022 
Pre-tax income, excluding provision for credit losses and MSR valuation adjustments (non-GAAP) (3) 173,149  150,441  122,662  149,411  138,138 323,590  276,151 
Net income per common share – Basic 0.34  1.05  1.46  1.71  1.40 1.40  2.94 
Net income per common share – Diluted 0.34  1.04  1.44  1.69  1.38 1.38  2.91 
Selected Financial Ratios and Other Data:   
Performance Ratios:   
Net interest margin 2.73% 3.12% 3.17% 3.37% 3.62%2.91% 3.66%
Net interest margin - fully taxable equivalent (non-GAAP) (3) 2.74  3.14  3.19  3.39  3.64 2.93  3.68 
Non-interest income to average assets 1.55  1.24  1.25  1.35  1.23 1.41  1.15 
Non-interest expense to average assets 2.48  2.58  2.78  2.74  2.87 2.53  2.83 
Net overhead ratio (4) 0.93  1.33  1.53  1.40  1.64 1.12  1.68 
Return on average assets 0.21  0.69  0.96  1.16  1.02 0.43  1.09 
Return on average common equity 2.17  6.82  9.52  11.42  9.68 4.48  10.37 
Return on average tangible common equity (non-GAAP) (3) 2.95  8.73  12.17  14.36  12.28 5.81  13.19 
Average total assets $42,042,729  $36,625,490  $35,645,190  $33,954,592  $32,055,769 $39,334,109  $31,638,289 
Average total shareholders’ equity 3,908,846  3,710,169  3,622,184  3,496,714  3,414,340 3,809,508  3,362,000 
Average loans to average deposits ratio 87.8% 90.1% 88.8% 90.6% 93.9%88.9% 93.3%
Period-end loans to deposits ratio 88.1  88.4  89.0  89.6  92.0    
Common Share Data at end of period:   
Market price per common share $43.62  $32.86  $70.90  $64.63  $73.16    
Book value per common share 62.14  62.13  61.68  60.24  58.62    
Tangible book value per common share (non-GAAP) (3) 50.23  50.18  49.70  49.16  47.48    
Common shares outstanding 57,573,672  57,545,352  57,821,891  56,698,429  56,667,846    
Other Data at end of period:   
Tier 1 leverage ratio (5) 8.1% 8.5% 8.7% 8.8% 9.1%   
Risk-based capital ratios:             
Tier 1 capital ratio (5) 10.1  9.3  9.6  9.7  9.6    
Common equity tier 1 capital ratio(5) 8.8  8.9  9.2  9.3  9.2    
Total capital ratio (5) 12.8  11.9  12.2  12.4  12.4    
Allowance for credit losses (6) $373,174  $253,482  $158,461  $163,273  $161,901    
Allowance for loan and unfunded lending-related commitment losses to total loans 1.19% 0.91% 0.59% 0.64% 0.64%   
Number of:             
Bank subsidiaries 15  15  15  15  15    
Banking offices 186  187  187  174  172    
  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 AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CONDITION

100%; border-collapse:collapse !important;">
  (Unaudited) (Unaudited)   (Unaudited) (Unaudited)
  Jun 30, Mar 31, Dec 31, Sep 30, Jun 30,
(In thousands) 2020 2020 2019 2019 2019
Assets          
45%; width:45%; min-width:45%;">Cash and due from banks1%; width:1%; min-width:1%;"> 1%; width:1%; min-width:1%;">$8%; width:8%; min-width:8%;">344,9991%; width:1%; min-width:1%;"> 1%; width:1%; min-width:1%;"> 1%; width:1%; min-width:1%;">$8%; width:8%; min-width:8%;">349,1181%; width:1%; min-width:1%;"> 1%; width:1%; min-width:1%;"> 1%; width:1%; min-width:1%;">$8%; width:8%; min-width:8%;">286,1671%; width:1%; min-width:1%;"> 1%; width:1%; min-width:1%;"> 1%; width:1%; min-width:1%;">$8%; width:8%; min-width:8%;">448,7551%; width:1%; min-width:1%;"> 1%; width:1%; min-width:1%;"> 1%; width:1%; min-width:1%;">$8%; width:8%; min-width:8%;">300,9341%; width:1%; min-width:1%;"> 
Federal funds sold and securities purchased under resale agreements 58  309  309  59  58 
Interest bearing deposits with banks 4,015,072  1,943,743  2,164,560  2,260,806  1,437,105 
Available-for-sale securities, at fair value 3,194,961  3,570,959  3,106,214  2,270,059  2,186,154 
Held-to-maturity securities, at amortized cost 728,465  865,376  1,134,400  1,095,802  1,191,634 
Trading account securities 890  2,257  1,068  3,204  2,430 
Equity securities with readily determinable fair value 52,460  47,310  50,840  46,086  44,319 
Federal Home Loan Bank and Federal Reserve Bank stock 135,571  134,546  100,739  92,714  92,026 
Brokerage customer receivables 14,623  16,293  16,573  14,943  13,569 
Mortgage loans held-for-sale 833,163  656,934  377,313  464,727  394,975 
Loans, net of unearned income 31,402,903  27,807,321  26,800,290  25,710,171  25,304,659 
Allowance for loan losses (313,510) (216,050) (156,828) (161,763) (160,421)
Net loans 31,089,393  27,591,271  26,643,462  25,548,408  25,144,238 
Premises and equipment, net 769,909  764,583  754,328  721,856  711,214 
Lease investments, net 237,040  207,147  231,192  228,647  230,111 
Accrued interest receivable and other assets 1,437,832  1,460,168  1,061,141  1,087,864  1,023,896 
Trade date securities receivable —  502,207  —  —  237,607 
Goodwill 644,213  643,441  645,220  584,315  584,911 
Other intangible assets 41,368  44,185  47,057  43,657  46,588 
Total assets $43,540,017  $38,799,847  $36,620,583  $34,911,902  $33,641,769 
Liabilities and Shareholders’ Equity          
Deposits:          
Non-interest bearing $10,204,791  $7,556,755  $7,216,758  $7,067,960  $6,719,958 
Interest bearing 25,447,083  23,904,905  22,890,380  21,642,419  20,798,857 
 Total deposits 35,651,874  31,461,660  30,107,138  28,710,379  27,518,815 
Federal Home Loan Bank advances 1,228,416  1,174,894  674,870  574,847  574,823 
Other borrowings 508,535  487,503  418,174  410,488  418,057 
Subordinated notes 436,298  436,179  436,095  435,979  436,021 
Junior subordinated debentures 253,566  253,566  253,566  253,566  253,566 
Trade date securities payable —  —  —  226  — 
Accrued interest payable and other liabilities 1,471,110  1,285,652  1,039,490  986,092  993,537 
Total liabilities 39,549,799  35,099,454  32,929,333  31,371,577  30,194,819 
Shareholders’ Equity:          
Preferred stock 412,500  125,000  125,000  125,000  125,000 
Common stock 58,294  58,266  57,951  56,825  56,794 
Surplus 1,643,864  1,652,063  1,650,278  1,574,011  1,569,969 
Treasury stock (44,891) (44,891) (6,931) (6,799) (6,650)
Retained earnings 1,921,048  1,917,558  1,899,630  1,830,165  1,747,266 
Accumulated other comprehensive loss (597) (7,603) (34,678) (38,877) (45,429)
Total shareholders’ equity 3,990,218  3,700,393  3,691,250  3,540,325  3,446,950 
Total liabilities and shareholders’ equity $43,540,017  $38,799,847  $36,620,583  $34,911,902  $33,641,769 

WINTRUST FINANCIAL CORPORATION AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED)

100%; border-collapse:collapse !important;">
 
 Three Months EndedSix Months Ended
(In thousands, except per share data)Jun 30,
2020		 Mar 31,
2020		 Dec 31,
2019		 Sep 30,
2019		 Jun 30,
2019		Jun 30,
2020		 Jun 30,
2019
Interest income            
32%; width:32%; min-width:32%;">Interest and fees on loans1%; width:1%; min-width:1%;">$7%; width:7%; min-width:7%;">294,7461%; width:1%; min-width:1%;"> 1%; width:1%; min-width:1%;"> 1%; width:1%; min-width:1%;">$7%; width:7%; min-width:7%;">301,8391%; width:1%; min-width:1%;"> 1%; width:1%; min-width:1%;"> 1%; width:1%; min-width:1%;">$7%; width:7%; min-width:7%;">308,0551%; width:1%; min-width:1%;"> 1%; width:1%; min-width:1%;"> 1%; width:1%; min-width:1%;">$7%; width:7%; min-width:7%;">314,2771%; width:1%; min-width:1%;"> 1%; width:1%; min-width:1%;"> 1%; width:1%; min-width:1%;">$7%; width:7%; min-width:7%;">309,1611%; width:1%; min-width:1%;"> 1%; width:1%; min-width:1%;">$7%; width:7%; min-width:7%;">596,5851%; width:1%; min-width:1%;"> 1%; width:1%; min-width:1%;"> 1%; width:1%; min-width:1%;">$7%; width:7%; min-width:7%;">606,1481%; width:1%; min-width:1%;"> 
Mortgage loans held-for-sale4,764  3,165  3,201  3,478  3,104 7,929  5,313 
Interest bearing deposits with banks1,310  4,768  8,971  10,326  5,206 6,078  10,506 
Federal funds sold and securities purchased under resale agreements16  86  390  310  — 102  — 
Investment securities27,105  32,467  27,611  24,758  27,721 59,572  55,677 
Trading account securities13  7  6  20  5 20  13 
Federal Home Loan Bank and Federal Reserve Bank stock1,765  1,577  1,328  1,294  1,439 3,342  2,794 
Brokerage customer receivables97  158  169  164  178 255  333 
Total interest income329,816  344,067  349,731  354,627  346,814 673,883  680,784 
Interest expense            
Interest on deposits50,057  67,435  74,724  76,168  67,024 117,492  128,000 
Interest on Federal Home Loan Bank advances4,934  3,360  1,461  1,774  4,193 8,294  6,643 
Interest on other borrowings3,436  3,546  3,273  3,466  3,525 6,982  7,158 
Interest on subordinated notes5,506  5,472  5,504  5,470  2,806 10,978  4,581 
Interest on junior subordinated debentures2,752  2,811  2,890  2,897  3,064 5,563  6,214 
Total interest expense66,685  82,624  87,852  89,775  80,612 149,309  152,596 
Net interest income263,131  261,443  261,879  264,852  266,202 524,574  528,188 
Provision for credit losses135,053  52,961  7,826  10,834  24,580 188,014  35,204 
Net interest income after provision for credit losses128,078  208,482  254,053  254,018  241,622 336,560  492,984 
Non-interest income            
Wealth management22,636  25,941  24,999  23,999  24,139 48,577  48,116 
Mortgage banking102,324  48,326  47,860  50,864  37,411 150,650  55,569 
Service charges on deposit accounts10,420  11,265  10,973  9,972  9,277 21,685  18,125 
Gains (losses) on investment securities, net808  (4,359) 587  710  864 (3,551) 2,228 
Fees from covered call options—  2,292  1,243  —  643 2,292  2,427 
Trading (losses) gains, net(634) (451) 46  11  (44)(1,085) (215)
Operating lease income, net11,785  11,984  12,487  12,025  11,733 23,769  22,529 
Other14,654  18,244  14,025  17,556  14,135 32,898  31,036 
Total non-interest income161,993  113,242  112,220  115,137  98,158 275,235  179,815 
Non-interest expense            
Salaries and employee benefits154,156  136,762  145,941  141,024  133,732 290,918  259,455 
Equipment15,846  14,834  14,485  13,314  12,759 30,680  24,529 
Operating lease equipment9,292  9,260  9,766  8,907  8,768 18,552  17,087 
Occupancy, net16,893  17,547  17,132  14,991  15,921 34,440  32,166 
Data processing10,406  8,373  7,569  6,522  6,204 18,779  13,729 
Advertising and marketing7,704  10,862  12,517  13,375  12,845 18,566  22,703 
Professional fees7,687  6,721  7,650  8,037  6,228 14,408  11,784 
Amortization of other intangible assets2,820  2,863  3,017  2,928  2,957 5,683  5,899 
FDIC insurance7,081  4,135  1,348  148  4,127 11,216  7,703 
OREO expense, net237  (876) 536  1,170  1,290 (639) 1,922 
Other27,246  24,160  29,630  24,138  24,776 51,406  47,004 
Total non-interest expense259,368  234,641  249,591  234,554  229,607 494,009  443,981 
Income before taxes30,703  87,083  116,682  134,601  110,173 117,786  228,818 
Income tax expense9,044  24,271  30,718  35,480  28,707 33,315  58,206 
Net income$21,659  $62,812  $85,964  $99,121  $81,466 $84,471  $170,612 
Preferred stock dividends2,050  2,050  2,050  2,050  2,050 4,100  4,100 
Net income applicable to common shares$19,609  $60,762  $83,914  $97,071  $79,416 $80,371  $166,512 
Net income per common share - Basic$0.34  $1.05  $1.46  $1.71  $1.40 $1.40  $2.94 
Net income per common share - Diluted$0.34  $1.04  $1.44  $1.69  $1.38 $1.38  $2.91 
Cash dividends declared per common share$0.28  $0.28  $0.25  $0.25  $0.25 $0.56  $0.50 
Weighted average common shares outstanding57,567  57,620  57,538  56,690  56,662 57,593  56,596 
Dilutive potential common shares414  575  874  773  699 481  700 
Average common shares and dilutive common shares57,981  58,195  58,412  57,463  57,361 58,074  57,296 

TABLE 1: LOAN PORTFOLIO MIX AND GROWTH RATES AND COMMERCIAL REAL ESTATE BY STATE

100%; border-collapse:collapse !important;">
          % Growth From
(Dollars in thousands)Jun 30,
2020		 Mar 31,
2020		 Dec 31,
2019		 Sep 30,
2019		 Jun 30,
2019		Dec 31,
2019 (1)		 Jun 30,
2019
Balance:            
Commercial            
34%; width:34%; min-width:34%;">Commercial, industrial, and other1%; width:1%; min-width:1%;">$7%; width:7%; min-width:7%;">8,498,9311%; width:1%; min-width:1%;"> 1%; width:1%; min-width:1%;"> 1%; width:1%; min-width:1%;">$7%; width:7%; min-width:7%;">8,999,7281%; width:1%; min-width:1%;"> 1%; width:1%; min-width:1%;"> 1%; width:1%; min-width:1%;">$7%; width:7%; min-width:7%;">8,257,6141%; width:1%; min-width:1%;"> 1%; width:1%; min-width:1%;"> 1%; width:1%; min-width:1%;">$7%; width:7%; min-width:7%;">8,180,0701%; width:1%; min-width:1%;"> 1%; width:1%; min-width:1%;"> 1%; width:1%; min-width:1%;">$7%; width:7%; min-width:7%;">8,246,4491%; width:1%; min-width:1%;"> 7%; width:7%; min-width:7%;">61%; width:1%; min-width:1%;">%1%; width:1%; min-width:1%;"> 7%; width:7%; min-width:7%;">31%; width:1%; min-width:1%;">%
Commercial PPP loans3,335,368  —  —  —  — 100  100 
Commercial, industrial, and other - PCD (2)24,933  26,158  28,306  15,532  24,325 (24) 2 
Commercial real estate            
Construction and development1,285,282  1,237,274  1,200,783  1,025,961  984,138 14  31 
Non-construction6,722,438  6,736,706  6,582,053  6,305,423  6,165,115 4  9 
Commercial real estate - PCD (2)193,025  211,551  237,440  117,283  126,991 (38) 52 
Home equity466,596  494,655  513,066  512,303  527,370 (18) (12)
Home equity - PCD (2)—  —  —  —  — —  — 
Residential real estate1,410,798  1,359,971  1,336,093  1,208,706  1,107,911 11  27 
Residential real estate - PCD (2)16,631  17,418  18,128  9,960  10,267 (17) 62 
Premium Finance receivables            
Commercial insurance3,999,774  3,465,055  3,442,027  3,449,950  3,368,423 33  19 
Life insurance5,277,126  5,084,695  4,935,320  4,654,588  4,487,921 14  18 
Premium finance receivables - PCD (2)123,676  136,944  139,282  140,908  146,557 (23) (16)
Consumer and other46,855  35,546  107,962  87,161  106,547 NM (56)
Consumer and other - PCD (2)1,470  1,620  2,216  2,326  2,645 (68) (44)
Total loans, net of unearned income$31,402,903  $27,807,321  $26,800,290  $25,710,171  $25,304,659 35% 24%
Mix:            
Commercial            
Commercial, industrial, and other28% 32% 31% 32% 33%   
Commercial PPP loans11  —  —  —  —    
Commercial, industrial, and other - PCD (2)0  0  0  0  0    
Commercial real estate            
Construction and development4  4  4  4  4    
Non-construction21  24  25  25  24    
Commercial real estate - PCD (2)1  1  1  0  1    
Home equity1  2  2  2  2    
Home equity - PCD (2)—  —  —  —  —    
Residential real estate4  5  5  5  4    
Residential real estate - PCD (2)0  0  0  0  0    
Premium Finance receivables            
Commercial insurance13  13  13  13  13    
Life insurance17  18  18  18  18    
Premium finance receivables - PCD (2)0  1  1  1  1    
Consumer and other0  0  0  0  0    
Consumer and other - PCD (2)0  0  0  0  0    
Total loans, net of unearned income100% 100% 100% 100% 100%   
  1. Annualized.
  2. As a result of the adoption of ASU 2016-13, the Company transitioned all previously classified purchase credit impaired ("PCI") loans to purchased credit deteriorated ("PCD") loans effective January 1, 2020. For prior periods presented, the previously classified PCI loans are presented with the PCD loans in their respective class.
100%; border-collapse:collapse !important;">
 Jun 30, 2020 Mar 31, 2020 Dec 31, 2019 Sep 30, 2019 Jun 30, 2019
  % of
Total
Balance		  % of
Total
Balance		  % of
Total
Balance		  % of
Total
Balance		  % of
Total
Balance
(Dollars in thousands)Balance Balance Balance Balance Balance
Commercial real estate - collateral location by state:          
21%; width:21%; min-width:21%;">Illinois1%; width:1%; min-width:1%;">$6%; width:6%; min-width:6%;">6,198,4861%; width:1%; min-width:1%;"> 6%; width:6%; min-width:6%;">75.61%; width:1%; min-width:1%;">%1%; width:1%; min-width:1%;"> 1%; width:1%; min-width:1%;">$6%; width:6%; min-width:6%;">6,171,6061%; width:1%; min-width:1%;"> 6%; width:6%; min-width:6%;">75.41%; width:1%; min-width:1%;">%1%; width:1%; min-width:1%;"> 1%; width:1%; min-width:1%;">$6%; width:6%; min-width:6%;">6,176,3531%; width:1%; min-width:1%;"> 6%; width:6%; min-width:6%;">77.01%; width:1%; min-width:1%;">%1%; width:1%; min-width:1%;"> 1%; width:1%; min-width:1%;">$6%; width:6%; min-width:6%;">5,654,8271%; width:1%; min-width:1%;"> 6%; width:6%; min-width:6%;">75.91%; width:1%; min-width:1%;">%1%; width:1%; min-width:1%;"> 1%; width:1%; min-width:1%;">$6%; width:6%; min-width:6%;">5,505,2901%; width:1%; min-width:1%;"> 6%; width:6%; min-width:6%;">75.71%; width:1%; min-width:1%;">%
Wisconsin760,839 9.3  793,145 9.7  744,975 9.3  744,577 10.0  740,288 10.2 
Total primary markets$6,959,325 84.9% $6,964,751 85.1% $6,921,328 86.3% $6,399,404 85.9% $6,245,578 85.9%
Indiana249,423 3.0  249,680 3.1  218,963 2.7  193,350 2.6  179,977 2.5 
Florida133,810 1.6  126,786 1.5  114,629 1.4  80,120 1.1  60,343 0.8 
Arizona78,135 1.0  72,214 0.9  64,022 0.8  62,657 0.8  62,607 0.9 
California81,634 1.0  63,883 0.8  64,345 0.8  67,999 0.9  68,497 0.9 
Other698,418 8.5  708,217 8.6  636,989 8.0  645,137 8.7  659,242 9.0 
Total commercial real estate$8,200,745 100% $8,185,531 100% $8,020,276 100% $7,448,667 100% $7,276,244 100%

TABLE 2: DEPOSIT PORTFOLIO MIX AND GROWTH RATES

100%; border-collapse:collapse !important;">
          % Growth From
(Dollars in thousands)Jun 30,
2020		 Mar 31,
2020		 Dec 31,
2019		 Sep 30,
2019		 Jun 30,
2019		Dec 31,
2019 (1)		 Jun 30,
2019
Balance:            
27%; width:27%; min-width:27%;">Non-interest bearing1%; width:1%; min-width:1%;">$8%; width:8%; min-width:8%;">10,204,7911%; width:1%; min-width:1%;"> 1%; width:1%; min-width:1%;"> 1%; width:1%; min-width:1%;">$8%; width:8%; min-width:8%;">7,556,7551%; width:1%; min-width:1%;"> 1%; width:1%; min-width:1%;"> 1%; width:1%; min-width:1%;">$8%; width:8%; min-width:8%;">7,216,7581%; width:1%; min-width:1%;"> 1%; width:1%; min-width:1%;"> 1%; width:1%; min-width:1%;">$8%; width:8%; min-width:8%;">7,067,9601%; width:1%; min-width:1%;"> 1%; width:1%; min-width:1%;"> 1%; width:1%; min-width:1%;">$8%; width:8%; min-width:8%;">6,719,9581%; width:1%; min-width:1%;"> 8%; width:8%; min-width:8%;">831%; width:1%; min-width:1%;">%1%; width:1%; min-width:1%;"> 8%; width:8%; min-width:8%;">521%; width:1%; min-width:1%;">%
NOW and interest bearing demand deposits3,440,348  3,181,159  3,093,159  2,966,098  2,788,976 23  23 
Wealth management deposits (2)4,433,020  3,936,968  3,123,063  2,795,838  3,220,256 84  38 
Money market9,288,976  8,114,659  7,854,189  7,326,899  6,460,098 37  44 
Savings3,447,352  3,282,340  3,196,698  2,934,348  2,823,904 16  22 
Time certificates of deposit4,837,387  5,389,779  5,623,271  5,619,236  5,505,623 (28) (12)
Total deposits$35,651,874  $31,461,660  $30,107,138  $28,710,379  $27,518,815 37% 30%
Mix:            
Non-interest bearing29% 24% 24% 25% 24%   
NOW and interest bearing demand deposits10  10  10  10  10    
Wealth management deposits (2)12  13  10  10  12    
Money market25  26  26  25  24    
Savings10  10  11  10  10    
Time certificates of deposit14  17  19  20  20    
Total deposits100% 100% 100% 100% 100%   
  1. Annualized.
  2. Represents deposit balances of the Company’s subsidiary banks from brokerage customers of Wintrust Investments, CDEC, trust and asset management customers of the Company and brokerage customers from unaffiliated companies which have been placed into deposit accounts.

TABLE 3: TIME CERTIFICATES OF DEPOSIT MATURITY/RE-PRICING ANALYSIS
As of June 30, 2020

100%; border-collapse:collapse !important;">
(Dollars in thousands)CDARs &
Brokered
Certificates
  of Deposit (1)		 MaxSafe
Certificates
  of Deposit (1)		 Variable Rate
Certificates
  of Deposit (2)		 Other Fixed
Rate   Certificates
  of Deposit (1)		 Total Time
Certificates of
Deposit		 Weighted-Average
Rate of Maturing
Time Certificates
  of Deposit (3)
36%; width:36%; min-width:36%;">1-3 months1%; width:1%; min-width:1%;">$8%; width:8%; min-width:8%;">1,6901%; width:1%; min-width:1%;"> 1%; width:1%; min-width:1%;"> 1%; width:1%; min-width:1%;">$8%; width:8%; min-width:8%;">33,6001%; width:1%; min-width:1%;"> 1%; width:1%; min-width:1%;"> 1%; width:1%; min-width:1%;">$8%; width:8%; min-width:8%;">59,9881%; width:1%; min-width:1%;"> 1%; width:1%; min-width:1%;"> 1%; width:1%; min-width:1%;">$8%; width:8%; min-width:8%;">651,9641%; width:1%; min-width:1%;"> 1%; width:1%; min-width:1%;"> 1%; width:1%; min-width:1%;">$8%; width:8%; min-width:8%;">747,2421%; width:1%; min-width:1%;"> 1%; width:1%; min-width:1%;"> 8%; width:8%; min-width:8%;">1.651%; width:1%; min-width:1%;">%
4-6 months609  31,127  —  561,696  593,432  1.53 
7-9 months—  9,547  —  802,262  811,809  1.91 
10-12 months—  14,830  —  1,223,365  1,238,195  1.93 
13-18 months1,401  15,049  —  1,012,797  1,029,247  1.99 
19-24 months—  4,580  —  200,078  204,658  1.19 
24+ months88  4,395  —  208,321  212,804  1.38 
Total$3,788  $113,128  $59,988  $4,660,483  $4,837,387  1.79%
  1. This category of certificates of deposit is shown by contractual maturity date.
  2. This category includes variable rate certificates of deposit and savings certificates with the majority repricing on at least a monthly basis.
  3. Weighted-average rate excludes the impact of purchase accounting fair value adjustments.

TABLE 4: QUARTERLY AVERAGE BALANCES

100%; border-collapse:collapse !important;">
  Average Balance for three months ended,
  Jun 30, Mar 31, Dec 31, Sep 30, Jun 30,
(In thousands) 2020 2020 2019 2019 2019
45%; width:45%; min-width:45%;">Interest-bearing deposits with banks and cash equivalents (1)1%; width:1%; min-width:1%;"> 1%; width:1%; min-width:1%;">$8%; width:8%; min-width:8%;">3,240,1671%; width:1%; min-width:1%;"> 1%; width:1%; min-width:1%;"> 1%; width:1%; min-width:1%;">$8%; width:8%; min-width:8%;">1,418,8091%; width:1%; min-width:1%;"> 1%; width:1%; min-width:1%;"> 1%; width:1%; min-width:1%;">$8%; width:8%; min-width:8%;">2,206,2511%; width:1%; min-width:1%;"> 1%; width:1%; min-width:1%;"> 1%; width:1%; min-width:1%;">$8%; width:8%; min-width:8%;">1,960,8981%; width:1%; min-width:1%;"> 1%; width:1%; min-width:1%;"> 1%; width:1%; min-width:1%;">$8%; width:8%; min-width:8%;">893,3321%; width:1%; min-width:1%;"> 
Investment securities (2) 4,309,471  4,780,709  3,909,699  3,410,090  3,653,580 
FHLB and FRB stock 135,360  114,829  94,843  92,583  105,491 
Liquidity management assets (6) 7,684,998  6,314,347  6,210,793  5,463,571  4,652,403 
Other earning assets (3)(6) 16,917  19,166  18,353  17,809  15,719 
Mortgage loans held-for-sale 705,702  403,262  381,878  379,870  281,732 
Loans, net of unearned income (4)(6) 30,336,626  26,936,728  26,137,722  25,346,290  24,553,263 
Total earning assets (6) 38,744,243  33,673,503  32,748,746  31,207,540  29,503,117 
Allowance for loan and investment security losses (7) (222,485) (176,291) (167,759) (168,423) (164,231)
Cash and due from banks 352,423  321,982  316,631  297,475  273,679 
Other assets 3,168,548  2,806,296  2,747,572  2,618,000  2,443,204 
Total assets $42,042,729  $36,625,490  $35,645,190  $33,954,592  $32,055,769 
           
NOW and interest bearing demand deposits $3,323,124  $3,113,733  $3,016,991  $2,912,961  $2,878,021 
Wealth management deposits 4,380,996  2,838,719  2,934,292  2,888,817  2,605,690 
Money market accounts 8,727,966  7,990,775  7,647,635  6,956,755  6,095,285 
Savings accounts 3,394,480  3,189,835  3,028,763  2,837,039  2,752,828 
Time deposits 5,104,701  5,526,407  5,682,449  5,590,228  5,322,384 
Interest-bearing deposits 24,931,267  22,659,469  22,310,130  21,185,800  19,654,208 
Federal Home Loan Bank advances 1,214,375  951,613  596,594  574,833  869,812 
Other borrowings 493,350  469,577  415,092  416,300  419,064 
Subordinated notes 436,226  436,119  436,025  436,041  220,771 
Junior subordinated debentures 253,566  253,566  253,566  253,566  253,566 
Total interest-bearing liabilities 27,328,784  24,770,344  24,011,407  22,866,540  21,417,421 
Non-interest bearing deposits 9,607,528  7,235,177  7,128,166  6,776,786  6,487,627 
Other liabilities 1,197,571  909,800  883,433  814,552  736,381 
Equity 3,908,846  3,710,169  3,622,184  3,496,714  3,414,340 
Total liabilities and shareholders’ equity $42,042,729  $36,625,490  $35,645,190  $33,954,592  $32,055,769 
           
Net free funds/contribution (5) $11,415,459  $8,903,159  $8,737,339  $8,341,000  $8,085,696 
  1. Includes interest-bearing deposits from banks, federal funds sold and securities purchased under resale agreements.
  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. Other earning assets include brokerage customer receivables and trading account securities.
  4. Loans, net of unearned income, include non-accrual loans.
  5. 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.
  6. See "Supplemental Non-GAAP Financial Measures/Ratios" at Table 18 for additional information on this performance measure/ratio.
  7. Effective January 1, 2020 this includes the allowance for investment security losses as a result of the adoption of ASU 2016-13, Financial Instruments - Credit Losses.

TABLE 5: QUARTERLY NET INTEREST INCOME

100%; border-collapse:collapse !important;">
  Net Interest Income for three months ended,
  Jun 30, Mar 31, Dec 31, Sep 30, Jun 30,
(In thousands) 2020 2020 2019 2019 2019
Interest income:          
45%; width:45%; min-width:45%;">Interest-bearing deposits with banks and cash equivalents1%; width:1%; min-width:1%;"> 1%; width:1%; min-width:1%;">$8%; width:8%; min-width:8%;">1,3261%; width:1%; min-width:1%;"> 1%; width:1%; min-width:1%;"> 1%; width:1%; min-width:1%;">$8%; width:8%; min-width:8%;">4,8541%; width:1%; min-width:1%;"> 1%; width:1%; min-width:1%;"> 1%; width:1%; min-width:1%;">$8%; width:8%; min-width:8%;">9,3611%; width:1%; min-width:1%;"> 1%; width:1%; min-width:1%;"> 1%; width:1%; min-width:1%;">$8%; width:8%; min-width:8%;">10,6361%; width:1%; min-width:1%;"> 1%; width:1%; min-width:1%;"> 1%; width:1%; min-width:1%;">$8%; width:8%; min-width:8%;">5,2061%; width:1%; min-width:1%;"> 
Investment securities 27,643  33,018  28,184  25,332  28,290 
FHLB and FRB stock 1,765  1,577  1,328  1,294  1,439 
Liquidity management assets (2) 30,734  39,449  38,873  37,262  34,935 
Other earning assets (2) 113  167  176  189  184 
Mortgage loans held-for-sale 4,764  3,165  3,201  3,478  3,104 
Loans, net of unearned income (2) 295,322  302,699  308,947  315,255  310,191 
Total interest income $330,933  $345,480  $351,197  $356,184  $348,414 
           
Interest expense:          
NOW and interest bearing demand deposits $1,561  $3,665  $4,622  $5,291  $5,553 
Wealth management deposits 7,244  6,935  7,867  9,163  7,091 
Money market accounts 13,140  22,363  25,603  25,426  21,451 
Savings accounts 3,840  5,790  6,145  5,622  4,959 
Time deposits 24,272  28,682  30,487  30,666  27,970 
Interest-bearing deposits 50,057  67,435  74,724  76,168  67,024 
Federal Home Loan Bank advances 4,934  3,360  1,461  1,774  4,193 
Other borrowings 3,436  3,546  3,273  3,466  3,525 
Subordinated notes 5,506  5,472  5,504  5,470  2,806 
Junior subordinated debentures 2,752  2,811  2,890  2,897  3,064 
Total interest expense $66,685  $82,624  $87,852  $89,775  $80,612 
           
Less:  Fully taxable-equivalent adjustment (1,117) (1,413) (1,466) (1,557) (1,600)
Net interest income (GAAP) (1) 263,131  261,443  261,879  264,852  266,202 
Fully taxable-equivalent adjustment 1,117  1,413  1,466  1,557  1,600 
Net interest income, fully taxable-equivalent (non-GAAP) (1) $264,248  $262,856  $263,345  $266,409  $267,802 
  1. See "Supplemental Non-GAAP Financial Measures/Ratios" at Table 18 for additional information on this performance measure/ratio.
  2. 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.

TABLE 6: QUARTERLY NET INTEREST MARGIN

100%; border-collapse:collapse !important;">
  Net Interest Margin for three months ended,
  Jun 30,
2020		 Mar 31,
2020		 Dec 31,
2019		 Sep 30,
2019		 Jun 30,
2019
Yield earned on:          
50%; width:50%; min-width:50%;">Interest-bearing deposits with banks and cash equivalents1%; width:1%; min-width:1%;"> 8%; width:8%; min-width:8%;">0.161%; width:1%; min-width:1%;">%1%; width:1%; min-width:1%;"> 8%; width:8%; min-width:8%;">1.381%; width:1%; min-width:1%;">%1%; width:1%; min-width:1%;"> 8%; width:8%; min-width:8%;">1.681%; width:1%; min-width:1%;">%1%; width:1%; min-width:1%;"> 8%; width:8%; min-width:8%;">2.151%; width:1%; min-width:1%;">%1%; width:1%; min-width:1%;"> 8%; width:8%; min-width:8%;">2.341%; width:1%; min-width:1%;">%
Investment securities 2.58  2.78  2.86  2.95  3.11 
FHLB and FRB stock 5.24  5.52  5.55  5.55  5.47 
Liquidity management assets 1.61  2.51  2.48  2.71  3.01 
Other earning assets 2.71  3.50  3.83  4.20  4.68 
Mortgage loans held-for-sale 2.72  3.16  3.33  3.63  4.42 
Loans, net of unearned income 3.92  4.52  4.69  4.93  5.07 
Total earning assets 3.44% 4.13% 4.25% 4.53% 4.74%
           
Rate paid on:          
NOW and interest bearing demand deposits 0.19% 0.47% 0.61% 0.72% 0.77%
Wealth management deposits 0.67  0.98  1.06  1.26  1.09 
Money market accounts 0.61  1.13  1.33  1.45  1.41 
Savings accounts 0.45  0.73  0.80  0.79  0.72 
Time deposits 1.91  2.09  2.13  2.18  2.11 
Interest-bearing deposits 0.81  1.20  1.33  1.43  1.37 
Federal Home Loan Bank advances 1.63  1.42  0.97  1.22  1.93 
Other borrowings 2.80  3.04  3.13  3.30  3.37 
Subordinated notes 5.05  5.02  5.05  5.02  5.08 
Junior subordinated debentures 4.29  4.39  4.46  4.47  4.78 
Total interest-bearing liabilities 0.98% 1.34% 1.45% 1.56% 1.51%
           
Interest rate spread  (1)(3) 2.46% 2.79% 2.80% 2.97% 3.23%
Less:  Fully taxable-equivalent adjustment (0.01) (0.02) (0.02) (0.02) (0.02)
Net free funds/contribution (2) 0.28  0.35  0.39  0.42  0.41 
Net interest margin (GAAP) (3) 2.73% 3.12% 3.17% 3.37% 3.62%
Fully taxable-equivalent adjustment 0.01  0.02  0.02  0.02  0.02 
Net interest margin, fully taxable-equivalent (non-GAAP) (3) 2.74% 3.14% 3.19% 3.39% 3.64%
  1. Interest rate spread is the difference between the yield earned on earning assets and the rate paid on interest-bearing liabilities.
  2. 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.
  3. See "Supplemental Non-GAAP Financial Measures/Ratios" at Table 18 for additional information on this performance measure/ratio.

TABLE 7: YEAR-TO-DATE AVERAGE BALANCES, AND NET INTEREST INCOME AND MARGIN

100%; border-collapse:collapse !important;">
 Average Balance 
for six months ended,		Interest   
for six months ended,		Yield/Rate 
for six months ended,
(Dollars in thousands)Jun 30,
2020		 Jun 30,
2019		Jun 30,
2020		 Jun 30,
2019		Jun 30, 2020 Jun 30,
2019
39%; width:39%; min-width:39%;">Interest-bearing deposits with banks and cash equivalents (1)1%; width:1%; min-width:1%;">$8%; width:8%; min-width:8%;">2,329,4881%; width:1%; min-width:1%;"> 1%; width:1%; min-width:1%;"> 1%; width:1%; min-width:1%;">$8%; width:8%; min-width:8%;">895,4971%; width:1%; min-width:1%;"> 1%; width:1%; min-width:1%;">$8%; width:8%; min-width:8%;">6,1801%; width:1%; min-width:1%;"> 1%; width:1%; min-width:1%;"> 1%; width:1%; min-width:1%;">$8%; width:8%; min-width:8%;">10,5061%; width:1%; min-width:1%;"> 8%; width:8%; min-width:8%;">0.531%; width:1%; min-width:1%;">%1%; width:1%; min-width:1%;"> 8%; width:8%; min-width:8%;">2.371%; width:1%; min-width:1%;">%
Investment securities (2)4,545,090  3,642,142 60,661  56,811 2.68  3.15 
FHLB and FRB stock125,094  100,187 3,342  2,794 5.37  5.62 
Liquidity management assets (3)(8)$6,999,672  $4,637,826 $70,183  $70,111 2.02% 3.05%
Other earning assets (3)(4)(8)18,041  14,661 280  349 3.13  4.79 
Mortgage loans held-for-sale554,482  235,220 7,929  5,313 2.88  4.55 
Loans, net of unearned income (3)(5)(8)28,636,678  24,218,946 598,021  608,212 4.20  5.06 
Total earning assets (8)$36,208,873  $29,106,653 $676,413  $683,985 3.76% 4.74%
Allowance for loan losses(199,388) (161,024)      
Cash and due from banks337,202  278,324       
Other assets2,987,422  2,414,336       
Total assets$39,334,109  $31,638,289       
          
NOW and interest bearing demand deposits$3,218,429  $2,840,886 $5,227  $10,166 0.33% 0.72%
Wealth management deposits3,609,857  2,609,839 14,179  14,091 0.79  1.09 
Money market accounts8,359,370  6,005,902 35,503  40,911 0.85  1.37 
Savings accounts3,292,158  2,734,228 9,630  9,208 0.59  0.68 
Time deposits5,315,554  5,295,241 52,953  53,624 2.00  2.04 
Interest-bearing deposits$23,795,368  $19,486,096 $117,492  $128,000 0.99% 1.32%
Federal Home Loan Bank advances1,082,994  732,834 8,294  6,643 1.54  1.83 
Other borrowings481,463  442,189 6,982  7,158 2.92  3.26 
Subordinated notes436,173  180,219 10,978  4,581 5.03  5.08 
Junior subordinated debentures253,566  253,566 5,563  6,214 4.34  4.88 
Total interest-bearing liabilities$26,049,564  $21,094,904 $149,309  $152,596 1.15% 1.46%
Non-interest bearing deposits8,421,353  6,466,122       
Other liabilities1,053,684  715,263       
Equity3,809,508  3,362,000       
Total liabilities and shareholders’ equity$39,334,109  $31,638,289       
Interest rate spread (6)(8)      2.61% 3.28%
Less:  Fully taxable-equivalent adjustment   (2,530) (3,201)(0.02) (0.02)
Net free funds/contribution (7)$10,159,309  $8,011,749    0.32  0.40 
Net interest income/ margin (GAAP) (8)   $524,574  $528,188 2.91% 3.66%
Fully taxable-equivalent adjustment   2,530  3,201 0.02  0.02 
Net interest income/ margin, fully taxable-equivalent (non-GAAP) (8)   $527,104  $531,389 2.93% 3.68%
  1. Includes interest-bearing deposits from banks, federal funds sold and securities purchased under resale agreements.
  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 a marginal federal corporate tax rate in effect as of the applicable period.
  4. Other earning assets include brokerage customer receivables and trading account securities.
  5. Loans, net of unearned income, include non-accrual loans.
  6. Interest rate spread is the difference between the yield earned on earning assets and the rate paid on interest-bearing liabilities.
  7. 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.
  8. See “Supplemental Non-GAAP Financial Measures/Ratios” at Table 18 for additional information on this performance ratio.

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 of 100 and 200 basis points and a decrease of 100 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:

100%; border-collapse:collapse !important;">
Static Shock Scenario +200
Basis 
Points		 +100
 Basis
 Points		 -100
Basis
 Points
49%; width:49%; min-width:49%;">Jun 30, 20201%; width:1%; min-width:1%;"> 15%; width:15%; min-width:15%;">25.91%; width:1%; min-width:1%;">%1%; width:1%; min-width:1%;"> 15%; width:15%; min-width:15%;">12.61%; width:1%; min-width:1%;">%1%; width:1%; min-width:1%;"> 15%; width:15%; min-width:15%;">(8.31%; width:1%; min-width:1%;">)%
Mar 31, 2020 22.5  10.6  (9.4)
Dec 31, 2019 18.6  9.7  (10.9)
Sep 30, 2019 20.7  10.5  (11.9)
Jun 30, 2019 17.3  8.9  (10.2)

 

100%; border-collapse:collapse !important;">
Ramp Scenario+200
Basis
Points		 +100
Basis
Points		 -100
Basis
Points
50%; width:50%; min-width:50%;">Jun 30, 202015%; width:15%; min-width:15%;">13.01%; width:1%; min-width:1%;">%1%; width:1%; min-width:1%;"> 15%; width:15%; min-width:15%;">6.71%; width:1%; min-width:1%;">%1%; width:1%; min-width:1%;"> 15%; width:15%; min-width:15%;">(3.21%; width:1%; min-width:1%;">)%
Mar 31, 20207.7  3.7  (3.8)
Dec 31, 20199.3  4.8  (5.0)
Sep 30, 201910.1  5.2  (5.6)
Jun 30, 20198.3  4.3  (4.6)

TABLE 9: MATURITIES AND SENSITIVITIES TO CHANGES IN INTEREST RATES

100%; border-collapse:collapse !important;">
 Loans repricing or maturity period  
As of June 30, 2020One year or less From one to five
years		 Over five years  
(In thousands)   Total
        
Commercial       
41%; width:41%; min-width:41%;">Fixed rate1%; width:1%; min-width:1%;">$12%; width:12%; min-width:12%;">270,0781%; width:1%; min-width:1%;"> 1%; width:1%; min-width:1%;"> 1%; width:1%; min-width:1%;">$12%; width:12%; min-width:12%;">5,117,4681%; width:1%; min-width:1%;"> 1%; width:1%; min-width:1%;"> 1%; width:1%; min-width:1%;">$12%; width:12%; min-width:12%;">822,5421%; width:1%; min-width:1%;"> 1%; width:1%; min-width:1%;"> 1%; width:1%; min-width:1%;">$12%; width:12%; min-width:12%;">6,210,0881%; width:1%; min-width:1%;"> 
Variable rate5,628,606  20,411  127  5,649,144 
Total commercial$5,898,684  $5,137,879  $822,669  $11,859,232 
Commercial real estate       
Fixed rate542,353  2,163,918  431,543  3,137,814 
Variable rate5,021,539  41,392  —  5,062,931 
Total commercial real estate$5,563,892  $2,205,310  $431,543  $8,200,745 
Home equity       
Fixed rate23,244  4,807  27  28,078 
Variable rate438,518  —  —  438,518 
Total home equity$461,762  $4,807  $27  $466,596 
Residential real estate       
Fixed rate38,039  11,576  487,530  537,145 
Variable rate60,409  341,479  488,396  890,284 
Total residential real estate$98,448  $353,055  $975,926  $1,427,429 
Premium finance receivables - commercial       
Fixed rate3,909,677  90,096  1  3,999,774 
Variable rate—  —  —  — 
Total premium finance receivables - commercial$3,909,677  $90,096  $1  $3,999,774 
Premium finance receivables - life insurance       
Fixed rate43,954  153,947  21,576  219,477 
Variable rate5,181,325  —  —  5,181,325 
Total premium finance receivables - life insurance$5,225,279  $153,947  $21,576  $5,400,802 
Consumer and other       
Fixed rate22,190  6,456  1,583  30,229 
Variable rate18,096  —  —  18,096 
Total consumer and other$40,286  $6,456  $1,583  $48,325 
        
Total per category       
Fixed rate4,849,535  7,548,268  1,764,802  14,162,605 
Variable rate16,348,493  403,282  488,523  17,240,298 
Total loans, net of unearned income$21,198,028  $7,951,550  $2,253,325  $31,402,903 
        
Variable Rate Loan Pricing by Index:       
Prime      $2,164,995 
One- month LIBOR      8,661,027 
Three- month LIBOR      301,327 
Twelve- month LIBOR      5,846,946 
Other      266,003 
Total variable rate      $17,240,298 

A PDF accompanying this announcement can be found at http://ml.globenewswire.com/Resource/Download/e89d083e-0f74-47bc-95e6-0d3178a6bc71

Source: Bloomberg

As noted in the table on the previous page, the majority of the Company’s portfolio is tied to LIBOR 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 $8.7 billion of variable rate loans tied to one-month LIBOR and $5.8 billion of variable rate loans tied to twelve-month LIBOR. The above chart shows:

100%; border-collapse:collapse !important;">
  Basis Points (bps) Change in
45%; width:45%; min-width:45%;"> 1%; width:1%; min-width:1%;"> 12%; width:12%; min-width:12%;">Prime1%; width:1%; min-width:1%;"> 5%; width:5%; min-width:5%;"> 12%; width:12%; min-width:12%;">1-month
LIBOR		1%; width:1%; min-width:1%;"> 5%; width:5%; min-width:5%;"> 12%; width:12%; min-width:12%;">12-month
LIBOR		1%; width:1%; min-width:1%;"> 5%; width:5%; min-width:5%;"> 
Second Quarter 2020 0 bps-83 bps-45 bps
First Quarter 2020 -150  -77  -100  
Fourth Quarter 2019 -25  -26  -3  
Third Quarter 2019 -50  -38  -15  
Second Quarter 2019 0  -9  -53  

TABLE 10: ALLOWANCE FOR CREDIT LOSSES

100%; border-collapse:collapse !important;">
  Three Months EndedSix Months Ended
  Jun 30, Mar 31, Dec 31, Sep 30, Jun 30,Jun 30, Jun 30,
(Dollars in thousands) 2020 2020 2019 2019 20192020 2019
31%; width:31%; min-width:31%;">Allowance for credit losses at beginning of period1%; width:1%; min-width:1%;"> 1%; width:1%; min-width:1%;">$7%; width:7%; min-width:7%;">253,4821%; width:1%; min-width:1%;"> 1%; width:1%; min-width:1%;"> 1%; width:1%; min-width:1%;">$7%; width:7%; min-width:7%;">158,4611%; width:1%; min-width:1%;"> 1%; width:1%; min-width:1%;"> 1%; width:1%; min-width:1%;">$7%; width:7%; min-width:7%;">163,2731%; width:1%; min-width:1%;"> 1%; width:1%; min-width:1%;"> 1%; width:1%; min-width:1%;">$7%; width:7%; min-width:7%;">161,9011%; width:1%; min-width:1%;"> 1%; width:1%; min-width:1%;"> 1%; width:1%; min-width:1%;">$7%; width:7%; min-width:7%;">159,6221%; width:1%; min-width:1%;"> 1%; width:1%; min-width:1%;">$7%; width:7%; min-width:7%;">158,4611%; width:1%; min-width:1%;"> 1%; width:1%; min-width:1%;"> 1%; width:1%; min-width:1%;">$7%; width:7%; min-width:7%;">154,1641%; width:1%; min-width:1%;"> 
Cumulative effect adjustment from the adoption of ASU 2016-13 —  47,418  —  —  — 47,418  — 
Provision for credit losses 135,053  52,961  7,826  10,834  24,580 188,014  35,204 
Other adjustments 42  (73) 30  (13) (11)(31) (38)
Charge-offs:             
Commercial 5,686  2,153  11,222  6,775  17,380 7,839  17,883 
Commercial real estate 7,087  85  533  809  326 7,172  4,060 
Home equity 239  1,001  1,330  1,594  690 1,240  778 
Residential real estate 208  356  483  25  287 564  290 
Premium finance receivables 3,434  3,184  3,817  1,866  5,009 6,618  7,219 
Consumer and other 99  128  167  117  136 227  238 
PCD (1) 222  530  —  —  — 752  — 
Total charge-offs 16,975  7,437  17,552  11,186  23,828 24,412  30,468 
Recoveries:             
Commercial 86  356  1,871  367  289 442  607 
Commercial real estate 307  79  1,404  385  247 386  727 
Home equity 36  294  166  183  68 330  130 
Residential real estate 30  60  50  203  140 90  169 
Premium finance receivables 833  1,110  1,350  563  734 1,943  1,290 
Consumer and other 58  39  43  36  60 97  116 
PCD (1) 222  214  —  —  — 436  — 
Total recoveries 1,572  2,152  4,884  1,737  1,538 3,724  3,039 
Net charge-offs (15,403) (5,285) (12,668) (9,449) (22,290)(20,688) (27,429)
Allowance for credit losses at period end $373,174  $253,482  $158,461  $163,273  $161,901 $373,174  $161,901 
              
Annualized net charge-offs by category as a percentage of its own respective category’s average:   
Commercial 0.20% 0.09% 0.46% 0.31% 0.85%0.15% 0.44%
Commercial real estate 0.34  0.00  (0.04) 0.02  0.00 0.17  0.10 
Home equity 0.17  0.57  0.89  1.08  0.47 0.37  0.25 
Residential real estate 0.06  0.10  0.14  (0.07) 0.06 0.08  0.03 
Premium finance receivables 0.12  0.10  0.28  0.15  0.55 0.11  0.16 
Consumer and other 0.22  0.59  0.41  0.27  0.30 0.28  0.23 
PCD (1) 0.00  0.32  —  —  — 0.25  — 
Total loans, net of unearned income 0.20% 0.08% 0.19% 0.15% 0.36%0.15% 0.23%
              
Net charge-offs as a percentage of the provision for credit losses 11.41% 9.98% 161.87% 87.22% 90.68%11.00% 77.92%
Loans at period-end $31,402,903  $27,807,321  $26,800,290  $25,710,171  $25,304,659    
Allowance for loan losses as a percentage of loans at period end 1.00% 0.78% 0.59% 0.63% 0.63%   
Allowance for loan and unfunded lending-related commitment losses as a percentage of loans at period end 1.19  0.91  0.59  0.64  0.64    
Allowance for loan and unfunded lending-related commitment losses as a percentage of loans at period end, excluding PPP loans 1.33  0.91  0.59  0.64  0.64    

(1)     As a result of the adoption of ASU 2016-13, the Company transitioned all previously classified PCI loans to PCD loans effective January 1, 2020. For prior periods presented, the previously classified PCI charge-offs and recoveries are presented with the non-PCI charge-offs and recoveries in their respective class.

TABLE 11: ALLOWANCE AND PROVISON FOR CREDIT LOSSES BY COMPONENT

100%; border-collapse:collapse !important;">
  Three Months EndedSix Months Ended
  Jun 30, Mar 31, Dec 31, Sep 30, Jun 30,Jun 30, Jun 30,
(In thousands) 2020 2020 2019 2019 20192020 2019
31%; width:31%; min-width:31%;">Provision for loan losses1%; width:1%; min-width:1%;"> 1%; width:1%; min-width:1%;">$7%; width:7%; min-width:7%;">112,8221%; width:1%; min-width:1%;"> 1%; width:1%; min-width:1%;"> 1%; width:1%; min-width:1%;">$7%; width:7%; min-width:7%;">50,3961%; width:1%; min-width:1%;"> 1%; width:1%; min-width:1%;"> 1%; width:1%; min-width:1%;">$7%; width:7%; min-width:7%;">7,7041%; width:1%; min-width:1%;"> 1%; width:1%; min-width:1%;"> 1%; width:1%; min-width:1%;">$7%; width:7%; min-width:7%;">10,8041%; width:1%; min-width:1%;"> 1%; width:1%; min-width:1%;"> 1%; width:1%; min-width:1%;">$7%; width:7%; min-width:7%;">24,5101%; width:1%; min-width:1%;"> 1%; width:1%; min-width:1%;">$7%; width:7%; min-width:7%;">163,2181%; width:1%; min-width:1%;"> 1%; width:1%; min-width:1%;"> 1%; width:1%; min-width:1%;">$7%; width:7%; min-width:7%;">35,1181%; width:1%; min-width:1%;"> 
Provision for unfunded lending-related commitments losses 22,236  2,569  122  30  70 24,805  86 
Provision for held-to-maturity securities losses (5) (4) —  —  — (9) — 
Provision for credit losses $135,053  $52,961  $7,826  $10,834  $24,580 $188,014  $35,204 
              
Allowance for loan losses $313,510  $216,050  $156,828  $161,763  $160,421    
Allowance for unfunded lending-related commitments losses 59,599  37,362  1,633  1,510  1,480    
Allowance for loan losses and unfunded lending-related commitments losses 373,109  253,412  158,461  163,273  161,901    
Allowance for held-to-maturity securities losses 65  70  —  —  —    
Allowance for credit losses $373,174  $253,482  $158,461  $163,273  $161,901    

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 core, niche and consumer and purchased loan portfolios, as of June 30, 2020,  March 31, 2020, and December 31, 2019.

100%; border-collapse:collapse !important;">
 As of June 30, 2020As of March 31, 2020As of December 31, 2019
(Dollars in thousands)Recorded
Investment		 Calculated
Allowance		 % of its
category’s balance		Recorded
Investment		 Calculated
Allowance		 % of its
category’s balance		Recorded
Investment		 Calculated
Allowance		 % of its
category’s balance
Commercial: (1)               
23%; width:23%; min-width:23%;">Commercial, industrial and other, excluding PPP loans1%; width:1%; min-width:1%;">$6%; width:6%; min-width:6%;">8,396,4851%; width:1%; min-width:1%;"> 1%; width:1%; min-width:1%;"> 1%; width:1%; min-width:1%;">$6%; width:6%; min-width:6%;">130,5851%; width:1%; min-width:1%;"> 1%; width:1%; min-width:1%;"> 6%; width:6%; min-width:6%;">1.561%; width:1%; min-width:1%;">%1%; width:1%; min-width:1%;"> 1%; width:1%; min-width:1%;">$6%; width:6%; min-width:6%;">8,888,3421%; width:1%; min-width:1%;"> 1%; width:1%; min-width:1%;"> 1%; width:1%; min-width:1%;">$6%; width:6%; min-width:6%;">104,7541%; width:1%; min-width:1%;"> 1%; width:1%; min-width:1%;"> 6%; width:6%; min-width:6%;">1.181%; width:1%; min-width:1%;">%1%; width:1%; min-width:1%;"> 1%; width:1%; min-width:1%;">$6%; width:6%; min-width:6%;">8,121,5841%; width:1%; min-width:1%;"> 1%; width:1%; min-width:1%;"> 1%; width:1%; min-width:1%;">$6%; width:6%; min-width:6%;">64,8291%; width:1%; min-width:1%;"> 1%; width:1%; min-width:1%;"> 6%; width:6%; min-width:6%;">0.801%; width:1%; min-width:1%;">%
Commercial real estate: (1)               
Construction and development1,193,735  67,333  5.64  1,113,863  31,687  2.84  1,075,545  16,418  1.53 
Non-construction6,397,847  108,613  1.70  6,388,142  68,914  1.08  6,199,042  51,935  0.84 
Home equity (1)427,668  11,596  2.71  451,804  11,844  2.62  469,498  3,860  0.82 
Residential real estate (1)1,338,801  11,200  0.84  1,274,351  11,621  0.91  1,246,829  9,736  0.78 
Total core loan portfolio$17,754,536  $329,327  1.85% $18,116,502  $228,820  1.26% $17,112,498  $146,778  0.86%
Commercial PPP loans$3,335,368  $4  0.00% $—  $—  —% $—  $—  —%
Premium finance receivables (1)               
Commercial insurance loans3,999,774  17,122  0.43  3,465,055  7,426  0.21  3,442,027  8,132  0.24 
Life insurance loans5,277,126  470  0.01  5,084,695  454  0.01  4,935,321  1,515  0.03 
Consumer and other(1)45,474  556  1.22  34,111  331  0.97  107,053  1,704  1.59 
Total niche and consumer loan portfolio$12,657,742  $18,152  0.14% $8,583,861  $8,211  0.10% $8,484,401  $11,351  0.13%
Purchased commercial (2)$127,379  $3,008  2.36% $137,544  $2,592  1.88% $164,336  $91  0.06%
Purchased commercial real estate (2)609,163  21,180  3.48  683,526  12,195  1.78  745,689  158  0.02 
Purchased home equity (2)38,928  593  1.52  42,851  550  1.28  43,568  18  0.04 
Purchased residential real estate(2)88,628  715  0.81  103,038  929  0.90  107,392  64  0.06 
Purchased life insurance loans (2)123,676  —  —  136,944  —  —  139,281  —  — 
Purchased consumer and other (2)2,851  134  4.70  3,055  115  3.76  3,125  1  0.03 
Total purchased loan portfolio$990,625  $25,630  2.59% $1,106,958  $16,381  1.48% $1,203,391  $332  0.03%
Total loans, net of unearned income$31,402,903  $373,109  1.19% $27,807,321  $253,412  0.91% $26,800,290  $158,461  0.59%
Total loans, net of unearned income, excluding PPP loans$28,067,535  $373,105  1.33% $27,807,321  $253,412  0.91% $26,800,290  $158,461  0.59%
  1. As a result of the adoption of ASU 2016-13, the Company transitioned all previously classified PCI loans to PCD loans effective January 1, 2020. Excludes PCD loans.
  2. Includes PCD loans.

TABLE 13: LOAN PORTFOLIO AGING

100%; border-collapse:collapse !important;">
  As of June 30, 2020 March 31, 2020
(Dollars in thousands) Non-PCD PCD (1) Total Loans Non-PCD PCD (1) Total Loans
Loan Balances:            
Commercial            
40%; width:40%; min-width:40%;">Nonaccrual1%; width:1%; min-width:1%;"> 1%; width:1%; min-width:1%;">$7%; width:7%; min-width:7%;">39,5891%; width:1%; min-width:1%;"> 1%; width:1%; min-width:1%;"> 1%; width:1%; min-width:1%;">$7%; width:7%; min-width:7%;">3,2931%; width:1%; min-width:1%;"> 1%; width:1%; min-width:1%;"> 1%; width:1%; min-width:1%;">$7%; width:7%; min-width:7%;">42,8821%; width:1%; min-width:1%;"> 1%; width:1%; min-width:1%;"> 1%; width:1%; min-width:1%;">$7%; width:7%; min-width:7%;">47,6611%; width:1%; min-width:1%;"> 1%; width:1%; min-width:1%;"> 1%; width:1%; min-width:1%;">$7%; width:7%; min-width:7%;">2,2551%; width:1%; min-width:1%;"> 1%; width:1%; min-width:1%;"> 1%; width:1%; min-width:1%;">$7%; width:7%; min-width:7%;">49,9161%; width:1%; min-width:1%;"> 
90+ days and still accruing 1,374  —  1,374  3  1,238  1,241 
60-89 days past due 8,107  845  8,952  8,541  332  8,873 
30-59 days past due 22,421  1,299  23,720  86,129  —  86,129 
Current 11,762,808  19,496  11,782,304  8,857,394  22,333  8,879,727 
Total Commercial $11,834,299  $24,933  $11,859,232  $8,999,728  $26,158  $9,025,886 
Commercial real estate            
Nonaccrual $43,334  $21,223  $64,557  $36,904  $25,926  $62,830 
90+ days and still accruing —  —  —  516  —  516 
60-89 days past due 22,402  4,078  26,480  7,415  2,797  10,212 
30-59 days past due 56,501  19,027  75,528  65,578  9,490  75,068 
Current 7,885,483  148,697  8,034,180  7,863,567  173,338  8,036,905 
Total Commercial real estate $8,007,720  $193,025  $8,200,745  $7,973,980  $211,551  $8,185,531 
Home equity            
Nonaccrual $7,261  $—  $7,261  $7,243  $—  $7,243 
90+ days and still accruing —  —  —  —  —  — 
60-89 days past due —  —  —  214  —  214 
30-59 days past due 1,296  —  1,296  2,096  —  2,096 
Current 458,039  —  458,039  485,102  —  485,102 
Total Home equity $466,596  $—  $466,596  $494,655  $—  $494,655 
Residential real estate            
Nonaccrual $13,941  $5,588  $19,529  $13,132  $5,833  $18,965 
90+ days and still accruing —  —  —  605  —  605 
60-89 days past due 1,318  188  1,506  345  —  345 
30-59 days past due 3,595  805  4,400  26,437  2,546  28,983 
Current 1,391,944  10,050  1,401,994  1,319,452  9,039  1,328,491 
Total Residential real estate $1,410,798  $16,631  $1,427,429  $1,359,971  $17,418  $1,377,389 
Premium finance receivables            
Nonaccrual $16,460  $—  $16,460  $21,058  $—  $21,058 
90+ days and still accruing 35,638  —  35,638  16,505  —  16,505 
60-89 days past due 42,353  —  42,353  12,730  —  12,730 
30-59 days past due 61,160  —  61,160  70,185  —  70,185 
Current 9,121,289  123,676  9,244,965  8,429,272  136,944  8,566,216 
Total Premium finance receivables $9,276,900  $123,676  $9,400,576  $8,549,750  $136,944  $8,686,694 
Consumer and other            
Nonaccrual $255  $172  $427  $232  $171  $403 
90+ days and still accruing 156  —  156  78  —  78 
60-89 days past due 4  —  4  607  18  625 
30-59 days past due 281  —  281  188  19  207 
Current 46,159  1,298  47,457  34,441  1,412  35,853 
Total Consumer and other $46,855  $1,470  $48,325  $35,546  $1,620  $37,166 
Total loans, net of unearned income            
Nonaccrual $120,840  $30,276  $151,116  $126,230  $34,185  $160,415 
90+ days and still accruing 37,168  —  37,168  17,707  1,238  18,945 
60-89 days past due 74,184  5,111  79,295  29,852  3,147  32,999 
30-59 days past due 145,254  21,131  166,385  250,613  12,055  262,668 
Current 30,665,722  303,217  30,968,939  26,989,228  343,066  27,332,294 
Total loans, net of unearned income $31,043,168  $359,735  $31,402,903  $27,413,630  $393,691  $27,807,321 

(1)     As a result of the adoption of ASU 2016-13, the Company transitioned all previously classified PCI loans to PCD loans effective January 1, 2020. For prior periods presented, the previously classified PCI loans are presented with the PCD loans in their respective class.

TABLE 14: NON-PERFORMING ASSETS AND TROUBLED DEBT RESTRUCTURINGS ("TDRs")

100%; border-collapse:collapse !important;">
 Jun 30, Mar 31, Dec 31, Sep 30, Jun 30,
(Dollars in thousands)2020 2020 2019 2019 2019
Loans past due greater than 90 days and still accruing (1):Non-PCDPCD(2) Non-PCDPCD(2)      
Commercial$1,374 $—  $3 1,238  $—  $—  $488 
Commercial real estate— —  516 —  —  —  — 
Home equity— —  — —  —  —  — 
Residential real estate— —  605 —  —  —  — 
Premium finance receivables35,638 —  16,505 —  11,517  10,612  6,940 
Consumer and other156 —  78 —  163  53  172 
Total loans past due greater than 90 days and still accruing37,168 —  17,707 1,238  11,680  10,665  7,600 
Non-accrual loans:           
Commercial39,589 3,293  47,661 2,255  37,224  43,931  47,604 
Commercial real estate43,334 21,223  36,904 25,926  26,113  21,557  20,875 
Home equity7,261 —  7,243 —  7,363  7,920  8,489 
Residential real estate13,941 5,588  13,132 5,833  13,797  13,447  14,236 
Premium finance receivables16,460 —  21,058 —  21,180  16,540  14,423 
Consumer and other255 172  232 171  231  224  220 
Total non-accrual loans120,840 30,276  126,230 34,185  105,908  103,619  105,847 
Total non-performing loans:           
Commercial40,963 3,293  47,664 3,493  37,224  43,931  48,092 
Commercial real estate43,334 21,223  37,420 25,926  26,113  21,557  20,875 
Home equity7,261 —  7,243 —  7,363  7,920  8,489 
Residential real estate13,941 5,588  13,737 5,833  13,797  13,447  14,236 
Premium finance receivables52,098 —  37,563 —  32,697  27,152  21,363 
Consumer and other411 172  310 171  394  277  392 
Total non-performing loans$158,008 $30,276  $143,937 35,423  $117,588  $114,284  $113,447 
Other real estate owned2,409 —  2,701 —  5,208  8,584  9,920 
Other real estate owned - from acquisitions7,788 —  8,325 —  9,963  8,898  9,917 
Other repossessed assets— —  — —  4  257  263 
Total non-performing assets$168,205 $30,276  $154,963 35,423  $132,763  $132,023  $133,547 
40%; width:40%; min-width:40%;">Accruing TDRs not included within non-performing assets1%; width:1%; min-width:1%;">$6%; width:6%; min-width:6%;">47,7501%; width:1%; min-width:1%;"> 1%; width:1%; min-width:1%;">$6%; width:6%; min-width:6%;">8591%; width:1%; min-width:1%;"> 1%; width:1%; min-width:1%;"> 1%; width:1%; min-width:1%;">$6%; width:6%; min-width:6%;">46,9951%; width:1%; min-width:1%;"> 1%; width:1%; min-width:1%;">$6%; width:6%; min-width:6%;">541%; width:1%; min-width:1%;"> 1%; width:1%; min-width:1%;"> 1%; width:1%; min-width:1%;">$6%; width:6%; min-width:6%;">36,7251%; width:1%; min-width:1%;"> 1%; width:1%; min-width:1%;"> 1%; width:1%; min-width:1%;">$6%; width:6%; min-width:6%;">45,1781%; width:1%; min-width:1%;"> 1%; width:1%; min-width:1%;"> 1%; width:1%; min-width:1%;">$6%; width:6%; min-width:6%;">45,8621%; width:1%; min-width:1%;"> 
Total non-performing loans by category as a percent of its own respective category’s period-end balance:           
Commercial0.35%13.21% 0.53%13.35% 0.45% 0.54% 0.58%
Commercial real estate0.54 10.99  0.47 12.26  0.33  0.29  0.29 
Home equity1.56 —  1.46 —  1.44  1.55  1.61 
Residential real estate0.99 33.60  1.01 33.49  1.02  1.10  1.27 
Premium finance receivables0.56 —  0.44 —  0.39  0.34  0.27 
Consumer and other0.88 11.70  0.87 10.56  0.36  0.31  0.36 
Total loans, net of unearned income0.51%8.42% 0.53%9.00% 0.44% 0.44% 0.45%
Total non-performing assets as a percentage of total assets0.46%  0.49%  0.36% 0.38% 0.40%
Allowance for loan losses as a percentage of total non-performing loans166.51%  120.46%  133.37% 141.54% 141.41%
  1. As of June 30, 2020, March 31, 2020, December 31, 2019, September 30, 2019, and June 30, 2019, no TDRs were past due greater than 90 days and still accruing interest.
  2. As a result of the adoption of ASU 2016-13, the Company transitioned all previously classified PCI loans to PCD loans effective January 1, 2020.

Non-performing Loans Rollforward

100%; border-collapse:collapse !important;">
 Three Months EndedSix Months Ended
 Jun 30, Mar 31, Dec 31, Sep 30, Jun 30,Jun 30, Jun 30,
(In thousands)2020 2020 2019 2019 20192020 2019
 Non-PCDPCD(2) Non-PCDPCD(2)         
32%; width:32%; min-width:32%;">Balance at beginning of period1%; width:1%; min-width:1%;">$5%; width:5%; min-width:5%;">143,9371%; width:1%; min-width:1%;"> 1%; width:1%; min-width:1%;">$5%; width:5%; min-width:5%;">35,4231%; width:1%; min-width:1%;"> 1%; width:1%; min-width:1%;"> 1%; width:1%; min-width:1%;">$5%; width:5%; min-width:5%;">117,5881%; width:1%; min-width:1%;"> 1%; width:1%; min-width:1%;">$5%; width:5%; min-width:5%;">—1%; width:1%; min-width:1%;"> 1%; width:1%; min-width:1%;"> 1%; width:1%; min-width:1%;">$5%; width:5%; min-width:5%;">114,2841%; width:1%; min-width:1%;"> 1%; width:1%; min-width:1%;"> 1%; width:1%; min-width:1%;">$5%; width:5%; min-width:5%;">113,4471%; width:1%; min-width:1%;"> 1%; width:1%; min-width:1%;"> 1%; width:1%; min-width:1%;">$5%; width:5%; min-width:5%;">117,5861%; width:1%; min-width:1%;"> 1%; width:1%; min-width:1%;">$5%; width:5%; min-width:5%;">117,5881%; width:1%; min-width:1%;"> 1%; width:1%; min-width:1%;"> 1%; width:1%; min-width:1%;">$5%; width:5%; min-width:5%;">113,2341%; width:1%; min-width:1%;"> 
Additions from becoming non-performing in the respective period18,547 2,256  30,390 1,805  30,977  20,781  20,567 52,998  44,597 
Additions from the adoption of ASU 2016-13— —  — 37,285  —  —  — 37,285  — 
Return to performing status(1,328)(1,238) (317)(169) (243) (407) (47)(3,052) (14,124)
Payments received(5,408)(5,793) (4,451)(3,498) (19,380) (16,326) (5,438)(19,150) (9,462)
Transfer to OREO and other repossessed assets— —  (1,297)—  —  (1,493) (1,486)(1,297) (1,568)
Charge-offs(12,512)(372) (2,551)—  (11,798) (6,984) (16,817)(15,435) (20,809)
Net change for niche loans (1)14,772 —  4,575 —  3,748  5,266  (918)19,347  1,579 
Balance at end of period$158,008 $30,276  $143,937 35,423  $117,588  $114,284  $113,447 $188,284  $113,447 
  1. This includes activity for premium finance receivables and indirect consumer loans.
  2. As a result of the adoption of ASU 2016-13, the Company transitioned all previously classified PCI loans to PCD loans effective January 1, 2020.

TDRs

100%; border-collapse:collapse !important;">
 Jun 30, Mar 31, Dec 31, Sep 30, Jun 30,
(In thousands)2020 2020 2019 2019 2019
Accruing TDRs:         
41%; width:41%; min-width:41%;">Commercial1%; width:1%; min-width:1%;">$9%; width:9%; min-width:9%;">5,3381%; width:1%; min-width:1%;"> 1%; width:1%; min-width:1%;"> 1%; width:1%; min-width:1%;">$9%; width:9%; min-width:9%;">6,5001%; width:1%; min-width:1%;"> 1%; width:1%; min-width:1%;"> 1%; width:1%; min-width:1%;">$9%; width:9%; min-width:9%;">4,9051%; width:1%; min-width:1%;"> 1%; width:1%; min-width:1%;"> 1%; width:1%; min-width:1%;">$9%; width:9%; min-width:9%;">14,0991%; width:1%; min-width:1%;"> 1%; width:1%; min-width:1%;"> 1%; width:1%; min-width:1%;">$9%; width:9%; min-width:9%;">15,9231%; width:1%; min-width:1%;"> 
Commercial real estate19,106  18,043  9,754  10,370  12,646 
Residential real estate and other24,165  22,506  22,066  20,709  17,293 
Total accrual$48,609  $47,049  $36,725  $45,178  $45,862 
Non-accrual TDRs: (1)         
Commercial$20,788  $17,206  $13,834  $7,451  $21,850 
Commercial real estate8,545  14,420  7,119  7,673  2,854 
Residential real estate and other5,606  4,962  6,158  6,006  5,435 
Total non-accrual$34,939  $36,588  $27,111  $21,130  $30,139 
Total TDRs:         
Commercial$26,126  $23,706  $18,739  $21,550  $37,773 
Commercial real estate27,651  32,463  16,873  18,043  15,500 
Residential real estate and other29,771  27,468  28,224  26,715  22,728 
Total TDRs$83,548  $83,637  $63,836  $66,308  $76,001 

(1)     Included in total non-performing loans.

Other Real Estate Owned

100%; border-collapse:collapse !important;">
 Three Months Ended
 Jun 30, Mar 31, Dec 31, Sep 30, Jun 30,
(In thousands)2020 2020 2019 2019 2019
46%; width:46%; min-width:46%;">Balance at beginning of period1%; width:1%; min-width:1%;">$8%; width:8%; min-width:8%;">11,0261%; width:1%; min-width:1%;"> 1%; width:1%; min-width:1%;"> 1%; width:1%; min-width:1%;">$8%; width:8%; min-width:8%;">15,1711%; width:1%; min-width:1%;"> 1%; width:1%; min-width:1%;"> 1%; width:1%; min-width:1%;">$8%; width:8%; min-width:8%;">17,4821%; width:1%; min-width:1%;"> 1%; width:1%; min-width:1%;"> 1%; width:1%; min-width:1%;">$8%; width:8%; min-width:8%;">19,8371%; width:1%; min-width:1%;"> 1%; width:1%; min-width:1%;"> 1%; width:1%; min-width:1%;">$8%; width:8%; min-width:8%;">21,5201%; width:1%; min-width:1%;"> 
Disposals/resolved(612) (4,793) (4,860) (4,501) (2,397)
Transfers in at fair value, less costs to sell—  954  936  3,008  1,746 
Additions from acquisition—  —  2,179  —  — 
Fair value adjustments(217) (306) (566) (862) (1,032)
Balance at end of period$10,197  $11,026  $15,171  $17,482  $19,837 
          
 Period End
 Jun 30, Mar 31, Dec 31, Sep 30, Jun 30,
Balance by Property Type:2020 2020 2019 2019 2019
Residential real estate$1,382  $1,684  $1,016  $1,250  $1,312 
Residential real estate development—  —  810  1,282  1,282 
Commercial real estate8,815  9,342  13,345  14,950  17,243 
Total$10,197  $11,026  $15,171  $17,482  $19,837 

TABLE 15: NON-INTEREST INCOME

100%; border-collapse:collapse !important;">
 Three Months Ended Q2 2020 compared to
Q1 2020		 Q2 2020 compared to
Q2 2019
 Jun 30, Mar 31, Dec 31, Sep 30, Jun 30,  
(Dollars in thousands)2020 2020 2019 2019 2019 $ Change % Change $ Change % Change
22%; width:22%; min-width:22%;">Brokerage1%; width:1%; min-width:1%;">$6%; width:6%; min-width:6%;">4,1471%; width:1%; min-width:1%;"> 1%; width:1%; min-width:1%;"> 1%; width:1%; min-width:1%;">$6%; width:6%; min-width:6%;">5,2811%; width:1%; min-width:1%;"> 1%; width:1%; min-width:1%;"> 1%; width:1%; min-width:1%;">$6%; width:6%; min-width:6%;">4,8591%; width:1%; min-width:1%;"> 1%; width:1%; min-width:1%;"> 1%; width:1%; min-width:1%;">$6%; width:6%; min-width:6%;">4,6861%; width:1%; min-width:1%;"> 1%; width:1%; min-width:1%;"> 1%; width:1%; min-width:1%;">$6%; width:6%; min-width:6%;">4,7641%; width:1%; min-width:1%;"> 1%; width:1%; min-width:1%;"> 1%; width:1%; min-width:1%;">$6%; width:6%; min-width:6%;">(1,1341%; width:1%; min-width:1%;">)1%; width:1%; min-width:1%;"> 6%; width:6%; min-width:6%;">(211%; width:1%; min-width:1%;">)%1%; width:1%; min-width:1%;"> 1%; width:1%; min-width:1%;">$6%; width:6%; min-width:6%;">(6171%; width:1%; min-width:1%;">)1%; width:1%; min-width:1%;"> 6%; width:6%; min-width:6%;">(131%; width:1%; min-width:1%;">)%
Trust and asset management18,489  20,660  20,140  19,313  19,375  (2,171) (11) (886) (5)
Total wealth management22,636  25,941  24,999  23,999  24,139  (3,305) (13) (1,503) (6)
Mortgage banking102,324  48,326  47,860  50,864  37,411  53,998  112  64,913  174 
Service charges on deposit accounts10,420  11,265  10,973  9,972  9,277  (845) (8) 1,143  12 
Gains (losses) on investment securities, net808  (4,359) 587  710  864  5,167  NM  (56) (6)
Fees from covered call options—  2,292  1,243  —  643  (2,292) (100) (643) (100)
Trading (losses) gains, net(634) (451) 46  11  (44) (183) (41) (590) NM 
Operating lease income, net11,785  11,984  12,487  12,025  11,733  (199) (2) 52  — 
Other:                 
Interest rate swap fees5,693  6,066  2,206  4,811  3,224  (373) (6) 2,469  77 
BOLI1,950  (1,284) 1,377  830  1,149  3,234  NM  801  70 
Administrative services933  1,112  1,072  1,086  1,009  (179) (16) (76) (8)
Foreign currency remeasurement (losses) gains(208) (151) 261  (55) 113  (57) (38) (321) NM 
Early pay-offs of capital leases275  74  24  6  —  201  272  275  NM 
Miscellaneous6,011  12,427  9,085  10,878  8,640  (6,416) (52) (2,629) (30)
Total Other14,654  18,244  14,025  17,556  14,135  (3,590) (20) 519  4 
Total Non-Interest Income$161,993  $113,242  $112,220  $115,137  $98,158  $48,751  43% $63,835  65%

NM - Not meaningful.

100%; border-collapse:collapse !important;">
 Six Months Ended    
 Jun 30, Jun 30, $ %
(Dollars in thousands)2020 2019 Change Change
42%; width:42%; min-width:42%;">Brokerage1%; width:1%; min-width:1%;">$12%; width:12%; min-width:12%;">9,4281%; width:1%; min-width:1%;"> 1%; width:1%; min-width:1%;"> 1%; width:1%; min-width:1%;">$12%; width:12%; min-width:12%;">9,2801%; width:1%; min-width:1%;"> 1%; width:1%; min-width:1%;"> 1%; width:1%; min-width:1%;">$12%; width:12%; min-width:12%;">1481%; width:1%; min-width:1%;"> 1%; width:1%; min-width:1%;"> 12%; width:12%; min-width:12%;">21%; width:1%; min-width:1%;">%
Trust and asset management39,149  38,836  313  1 
Total wealth management48,577  48,116  461  1 
Mortgage banking150,650  55,569  95,081  171 
Service charges on deposit accounts21,685  18,125  3,560  20 
(Losses) gains on investment securities, net(3,551) 2,228  (5,779) NM 
Fees from covered call options2,292  2,427  (135) (6)
Trading losses, net(1,085) (215) (870) NM 
Operating lease income, net23,769  22,529  1,240  6 
Other:       
Interest rate swap fees11,759  6,055  5,704  94 
BOLI666  2,740  (2,074) (76)
Administrative services2,045  2,039  6  — 
Foreign currency remeasurement (loss) gain(359) 577  (936) NM 
Early pay-offs of leases349  5  344  NM 
Miscellaneous18,438  19,620  (1,182) (6)
Total Other32,898  31,036  1,862  6 
Total Non-Interest Income$275,235  $179,815  $95,420  53%

NM - Not meaningful.

TABLE 16: MORTGAGE BANKING

100%; border-collapse:collapse !important;">
 Three Months EndedSix Months Ended
(Dollars in thousands)Jun 30,
2020		 Mar 31,
2020		 Dec 31,
2019		 Sep 30,
2019		 Jun 30,
2019		Jun 30,
2020		 Jun 30,
2019
Originations and Commitments:            
39%; width:39%; min-width:39%;">Retail originations1%; width:1%; min-width:1%;">$6%; width:6%; min-width:6%;">1,588,9321%; width:1%; min-width:1%;"> 1%; width:1%; min-width:1%;"> 1%; width:1%; min-width:1%;">$6%; width:6%; min-width:6%;">773,1441%; width:1%; min-width:1%;"> 1%; width:1%; min-width:1%;"> 1%; width:1%; min-width:1%;">$6%; width:6%; min-width:6%;">782,1221%; width:1%; min-width:1%;"> 1%; width:1%; min-width:1%;"> 1%; width:1%; min-width:1%;">$6%; width:6%; min-width:6%;">913,6311%; width:1%; min-width:1%;"> 1%; width:1%; min-width:1%;"> 1%; width:1%; min-width:1%;">$6%; width:6%; min-width:6%;">669,5101%; width:1%; min-width:1%;"> 1%; width:1%; min-width:1%;">$6%; width:6%; min-width:6%;">2,362,0761%; width:1%; min-width:1%;"> 1%; width:1%; min-width:1%;"> 1%; width:1%; min-width:1%;">$6%; width:6%; min-width:6%;">1,035,1121%; width:1%; min-width:1%;"> 
Correspondent originations—  —  4,024  50,639  182,966 —  331,066 
Veterans First originations621,878  442,957  459,236  456,005  301,324 1,064,835  466,086 
Total originations for sale (A)$2,210,810  $1,216,101  $1,245,382  $1,420,275  $1,153,800 $3,426,911  $1,832,264 
Originations for investment56,954  73,727  105,911  154,897  106,237 130,681  199,926 
Total originations$2,267,764  $1,289,828  $1,351,293  $1,575,172  $1,260,037 $3,557,592  $2,032,190 
             
Purchases as a percentage of originations for sale30% 37% 40% 48% 63%32% 64%
Refinances as a percentage of originations for sale70  63  60  52  37 68  36 
Total100% 100% 100% 100% 100%100% 100%
             
Mandatory commitments to fund originations for sale (1)$1,275,648  $1,375,162  $372,357  $433,009  $475,618    
             
Production Margin:            
Production revenue (B) (2)$93,433  $49,327  $34,622  $40,924  $29,895 $142,760  $46,501 
Production margin (B / A)4.23% 4.06% 2.78% 2.88% 2.59%4.17% 2.54%
             
Mortgage Servicing:            
Loans serviced for others (C)$9,188,285  $8,314,634  $8,243,251  $7,901,045  $7,515,186    
MSRs, at fair value (D)77,203  73,504  85,638  75,585  72,850    
Percentage of MSRs to loans serviced for others (D / C)0.84% 0.88% 1.04% 0.96% 0.97%   
Servicing income$6,908  $7,031  $6,247  $5,989  $5,460 $13,939  $10,920 
             
Components of MSR:            
MSR - current period capitalization$20,351  $9,447  $14,532  $14,029  $9,802 $29,798  $16,382 
MSR - collection of expected cash flows - paydowns(419) (547) (483) (456) (457)(966) (962)
MSR - collection of expected cash flows - payoffs(8,252) (6,476) (6,325) (6,781) (3,619)(14,728) (5,111)
Valuation:            
MSR - changes in fair value model assumptions(7,982) (14,557) 2,329  (4,058) (4,305)(22,539) (13,049)
Gain (loss) on derivative contract held as an economic hedge, net589  4,160  (483) 82  920 4,749  920 
MSR valuation adjustment, net of gain/(loss) on derivative contract held as an economic hedge$(7,393) $(10,397) $1,846  $(3,976) $(3,385)$(17,790) $(12,129)
             
Summary of Mortgage Banking Revenue:            
Production revenue (2)$93,433  $49,327  $34,622  $40,924  $29,895 $142,760  $46,501 
Servicing income6,908  7,031  6,247  5,989  5,460 13,939  10,920 
MSR activity4,287  (7,973) 9,570  2,816  2,341 (3,686) (1,820)
Other(2,304) (59) (2,579) 1,135  (285)(2,363) (32)
Total mortgage banking revenue$102,324  $48,326  $47,860  $50,864  $37,411 $150,650  $55,569 
  1. 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.
  2. Production revenue represents revenue earned from the origination and subsequent sale of mortgages, including gains on loans sold and fees from originations, 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.

TABLE 17: NON-INTEREST EXPENSE

100%; border-collapse:collapse !important;">
 Three Months Ended Q2 2020 compared to
Q1 2020		 Q2 2020 compared to
Q2 2019
 Jun 30, Mar 31, Dec 31, Sep 30, Jun 30,  
(Dollars in thousands)2020 2020 2019 2019 2019 $ Change % Change $ Change % Change
Salaries and employee benefits:                 
22%; width:22%; min-width:22%;">Salaries1%; width:1%; min-width:1%;">$6%; width:6%; min-width:6%;">87,1051%; width:1%; min-width:1%;"> 1%; width:1%; min-width:1%;"> 1%; width:1%; min-width:1%;">$6%; width:6%; min-width:6%;">81,2861%; width:1%; min-width:1%;"> 1%; width:1%; min-width:1%;"> 1%; width:1%; min-width:1%;">$6%; width:6%; min-width:6%;">82,8881%; width:1%; min-width:1%;"> 1%; width:1%; min-width:1%;"> 1%; width:1%; min-width:1%;">$6%; width:6%; min-width:6%;">78,0671%; width:1%; min-width:1%;"> 1%; width:1%; min-width:1%;"> 1%; width:1%; min-width:1%;">$6%; width:6%; min-width:6%;">75,3601%; width:1%; min-width:1%;"> 1%; width:1%; min-width:1%;"> 1%; width:1%; min-width:1%;">$6%; width:6%; min-width:6%;">5,8191%; width:1%; min-width:1%;"> 1%; width:1%; min-width:1%;"> 6%; width:6%; min-width:6%;">71%; width:1%; min-width:1%;">%1%; width:1%; min-width:1%;"> 1%; width:1%; min-width:1%;">$6%; width:6%; min-width:6%;">11,7451%; width:1%; min-width:1%;"> 1%; width:1%; min-width:1%;"> 6%; width:6%; min-width:6%;">161%; width:1%; min-width:1%;">%
Commissions and incentive compensation46,151  31,575  40,226  40,289  36,486  14,576  46  9,665  26 
Benefits20,900  23,901  22,827  22,668  21,886  (3,001) (13) (986) (5)
Total salaries and employee benefits154,156  136,762  145,941  141,024  133,732  17,394  13  20,424  15 
Equipment15,846  14,834  14,485  13,314  12,759  1,012  7  3,087  24 
Operating lease equipment9,292  9,260  9,766  8,907  8,768  32  —  524  6 
Occupancy, net16,893  17,547  17,132  14,991  15,921  (654) (4) 972  6 
Data processing10,406  8,373  7,569  6,522  6,204  2,033  24  4,202  68 
Advertising and marketing7,704  10,862  12,517  13,375  12,845  (3,158) (29) (5,141) (40)
Professional fees7,687  6,721  7,650  8,037  6,228  966  14  1,459  23 
Amortization of other intangible assets2,820  2,863  3,017  2,928  2,957  (43) (2) (137) (5)
FDIC insurance7,081  4,135  1,348  148  4,127  2,946  71  2,954  72 
OREO expense, net237  (876) 536  1,170  1,290  1,113  NM  (1,053) (82)
Other:                 
Commissions - 3rd party brokers707  865  717  734  749  (158) (18) (42) (6)
Postage1,591  1,949  2,220  2,321  2,606  (358) (18) (1,015) (39)
Miscellaneous24,948  21,346  26,693  21,083  21,421  3,602  17  3,527  16 
Total other27,246  24,160  29,630  24,138  24,776  3,086  13  2,470  10 
Total Non-Interest Expense$259,368  $234,641  $249,591  $234,554  $229,607  $24,727  11% $29,761  13%

NM - Not meaningful.

100%; border-collapse:collapse !important;">
  Six Months Ended   
  Jun 30, Jun 30,$ %
(Dollars in thousands) 2020 2019Change Change
Salaries and employee benefits:       
42%; width:42%; min-width:42%;">Salaries1%; width:1%; min-width:1%;"> 1%; width:1%; min-width:1%;">$12%; width:12%; min-width:12%;">168,3911%; width:1%; min-width:1%;"> 1%; width:1%; min-width:1%;"> 1%; width:1%; min-width:1%;">$12%; width:12%; min-width:12%;">149,3971%; width:1%; min-width:1%;"> 1%; width:1%; min-width:1%;">$12%; width:12%; min-width:12%;">18,9941%; width:1%; min-width:1%;"> 1%; width:1%; min-width:1%;"> 12%; width:12%; min-width:12%;">131%; width:1%; min-width:1%;">%
Commissions and incentive compensation 77,726  68,085 9,641  14 
Benefits 44,801  41,973 2,828  7 
Total salaries and employee benefits 290,918  259,455 31,463  12 
Equipment 30,680  24,529 6,151  25 
Operating lease equipment 18,552  17,087 1,465  9 
Occupancy, net 34,440  32,166 2,274  7 
Data processing 18,779  13,729 5,050  37 
Advertising and marketing 18,566  22,703 (4,137) (18)
Professional fees 14,408  11,784 2,624  22 
Amortization of other intangible assets 5,683  5,899 (216) (4)
FDIC insurance 11,216  7,703 3,513  46 
OREO expense, net (639) 1,922 (2,561) NM 
Other:       
Commissions - 3rd party brokers 1,572  1,467 105  7 
Postage 3,540  5,056 (1,516) (30)
Miscellaneous 46,294  40,481 5,813  14 
Total other 51,406  47,004 4,402  9 
Total Non-Interest Expense $494,009  $443,981 $50,028  11%

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, pre-tax income, excluding provision for credit losses and pre-tax income, excluding provision for credit losses and MSR valuation adjustment. Management believes that these measures and ratios provide users of the Company’s financial information a more meaningful view of the performance of the Company's interest-earning assets and interest-bearing liabilities and of the Company’s operating efficiency. Other financial holding companies may define or calculate these measures and ratios differently.

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

100%; border-collapse:collapse !important;">
 Three Months EndedSix Months Ended
 Jun 30, Mar 31, Dec 31, Sep 30, Jun 30,Jun 30, Jun 30,
(Dollars and shares in thousands)2020 2020 2019 2019 20192020 2019
Reconciliation of Non-GAAP Net Interest Margin and Efficiency Ratio:   
39%; width:39%; min-width:39%;">(A) Interest Income (GAAP)1%; width:1%; min-width:1%;">$6%; width:6%; min-width:6%;">329,8161%; width:1%; min-width:1%;"> 1%; width:1%; min-width:1%;"> 1%; width:1%; min-width:1%;">$6%; width:6%; min-width:6%;">344,0671%; width:1%; min-width:1%;"> 1%; width:1%; min-width:1%;"> 1%; width:1%; min-width:1%;">$6%; width:6%; min-width:6%;">349,7311%; width:1%; min-width:1%;"> 1%; width:1%; min-width:1%;"> 1%; width:1%; min-width:1%;">$6%; width:6%; min-width:6%;">354,6271%; width:1%; min-width:1%;"> 1%; width:1%; min-width:1%;"> 1%; width:1%; min-width:1%;">$6%; width:6%; min-width:6%;">346,8141%; width:1%; min-width:1%;"> 1%; width:1%; min-width:1%;">$6%; width:6%; min-width:6%;">673,8831%; width:1%; min-width:1%;"> 1%; width:1%; min-width:1%;"> 1%; width:1%; min-width:1%;">$6%; width:6%; min-width:6%;">680,7841%; width:1%; min-width:1%;"> 
Taxable-equivalent adjustment:            
 - Loans576  860  892  978  1,031 1,436  2,065 
 - Liquidity Management Assets538  551  573  574  568 1,089  1,133 
 - Other Earning Assets3  2  1  5  1 5  3 
(B) Interest Income (non-GAAP)$330,933  $345,480  $351,197  $356,184  $348,414 $676,413  $683,985 
(C) Interest Expense (GAAP)$66,685  $82,624  $87,852  $89,775  $80,612 $149,309  $152,596 
(D) Net Interest Income (GAAP) (A minus C)$263,131  $261,443  $261,879  $264,852  $266,202 $524,574  $528,188 
(E) Net Interest Income (non-GAAP) (B minus C)$264,248  $262,856  $263,345  $266,409  $267,802 $527,104  $531,389 
Net interest margin (GAAP)2.73% 3.12% 3.17% 3.37% 3.62%2.91% 3.66%
Net interest margin, fully taxable-equivalent (non-GAAP)2.74% 3.14% 3.19% 3.39% 3.64%2.93% 3.68%
(F) Non-interest income$161,993  $113,242  $112,220  $115,137  $98,158 $275,235  $179,815 
(G) Gains (losses) on investment securities, net808  (4,359) 587  710  864 (3,551) 2,228 
(H) Non-interest expense259,368  234,641  249,591  234,554  229,607 494,009  443,981 
Efficiency ratio (H/(D+F-G))61.13% 61.90% 66.82% 61.84% 63.17%61.49% 62.91%
Efficiency ratio (non-GAAP) (H/(E+F-G))60.97% 61.67% 66.56% 61.59% 62.89%61.30% 62.62%
             
Reconciliation of Non-GAAP Tangible Common Equity Ratio:   
Total shareholders’ equity (GAAP)$3,990,218  $3,700,393  $3,691,250  $3,540,325  $3,446,950    
Less: Non-convertible preferred stock (GAAP)(412,500) (125,000) (125,000) (125,000) (125,000)   
Less: Intangible assets (GAAP)(685,581) (687,626) (692,277) (627,972) (631,499)   
(I) Total tangible common shareholders’ equity (non-GAAP)$2,892,137  $2,887,767  $2,873,973  $2,787,353  $2,690,451    
(J) Total assets (GAAP)$43,540,017  $38,799,847  $36,620,583  $34,911,902  $33,641,769    
Less: Intangible assets (GAAP)(685,581) (687,626) (692,277) (627,972) (631,499)   
(K) Total tangible assets (non-GAAP)$42,854,436  $38,112,221  $35,928,306  $34,283,930  $33,010,270    
Common equity to assets ratio (GAAP) (L/J)8.2% 9.2% 9.7% 9.8% 9.9%   
Tangible common equity ratio (non-GAAP) (I/K)6.7% 7.6% 8.0% 8.1% 8.2%   

 

100%; border-collapse:collapse !important;">
 Three Months EndedSix Months Ended
 Jun 30, Mar 31, Dec 31, Sep 30, Jun 30,Jun 30, Jun 30,
(Dollars and shares in thousands)2020 2020 2019 2019 20192020 2019
Reconciliation of Non-GAAP Tangible Book Value per Common Share:   
Total shareholders’ equity$3,990,218  $3,700,393  $3,691,250  $3,540,325  $3,446,950    
Less: Preferred stock(412,500) (125,000) (125,000) (125,000) (125,000)   
(L) Total common equity$3,577,718  $3,575,393  $3,566,250  $3,415,325  $3,321,950    
(M) Actual common shares outstanding57,574  57,545  57,822  56,698  56,668    
Book value per common share (L/M)$62.14  $62.13  $61.68  $60.24  $58.62    
Tangible book value per common share (non-GAAP) (I/M)$50.23  $50.18  $49.70  $49.16  $47.48    
             
Reconciliation of Non-GAAP Return on Average Tangible Common Equity:   
39%; width:39%; min-width:39%;">(N) Net income applicable to common shares1%; width:1%; min-width:1%;">$6%; width:6%; min-width:6%;">19,6091%; width:1%; min-width:1%;"> 1%; width:1%; min-width:1%;"> 1%; width:1%; min-width:1%;">$6%; width:6%; min-width:6%;">60,7621%; width:1%; min-width:1%;"> 1%; width:1%; min-width:1%;"> 1%; width:1%; min-width:1%;">$6%; width:6%; min-width:6%;">83,9141%; width:1%; min-width:1%;"> 1%; width:1%; min-width:1%;"> 1%; width:1%; min-width:1%;">$6%; width:6%; min-width:6%;">97,0711%; width:1%; min-width:1%;"> 1%; width:1%; min-width:1%;"> 1%; width:1%; min-width:1%;">$6%; width:6%; min-width:6%;">79,4161%; width:1%; min-width:1%;"> 1%; width:1%; min-width:1%;">$6%; width:6%; min-width:6%;">80,3711%; width:1%; min-width:1%;"> 1%; width:1%; min-width:1%;"> 1%; width:1%; min-width:1%;">$6%; width:6%; min-width:6%;">166,5121%; width:1%; min-width:1%;"> 
Add: Intangible asset amortization2,820  2,863  3,017  2,928  2,957 5,683  5,899 
Less: Tax effect of intangible asset amortization(832) (799) (793) (773) (771)(1,608) (1,502)
After-tax intangible asset amortization1,988  2,064  2,224  2,155  2,186 4,075  4,397 
(O) Tangible net income applicable to common shares (non-GAAP)$21,597  $62,826  $86,138  $99,226  $81,602 $84,446  $170,909 
Total average shareholders' equity$3,908,846  $3,710,169  $3,622,184  $3,496,714  $3,414,340 $3,809,508  $3,362,000 
Less: Average preferred stock(273,489) (125,000) (125,000) (125,000) (125,000)(199,245) (125,000)
(P) Total average common shareholders' equity$3,635,357  $3,585,169  $3,497,184  $3,371,714  $3,289,340 $3,610,263  $3,237,000 
Less: Average intangible assets(686,526) (690,777) (689,286) (630,279) (624,794)(688,652) (623,524)
(Q) Total average tangible common shareholders’ equity (non-GAAP)$2,948,831  $2,894,392  $2,807,898  $2,741,435  $2,664,546 $2,921,611  $2,613,476 
Return on average common equity, annualized  (N/P)2.17% 6.82% 9.52% 11.42% 9.68%4.48% 10.37%
Return on average tangible common equity, annualized (non-GAAP) (O/Q)2.95% 8.73% 12.17% 14.36% 12.28%5.81% 13.19%
             
Reconciliation of Non-GAAP Pre-Tax, Pre-Provision Income and Pre-Tax, Pre-Provision, Pre-MSR Adjustment Income:     
Income before taxes$30,703  $87,083  $116,682  $134,601  $110,173 $117,786  $228,818 
Add:  Provision for credit losses135,053  52,961  7,826  10,834  24,580 188,014  35,204 
Pre-tax income, excluding provision for credit losses (non-GAAP)$165,756  $140,044  $124,508  $145,435  $134,753 $305,800  $264,022 
Less: MSR valuation adjustment, net of (loss)/gain on derivative contract held as an economic hedge$(7,393) $(10,397) $1,846  $(3,976) $(3,385)$(17,790) $(12,129)
Pre-tax income, excluding provision for credit losses and MSR valuation adjustments (non-GAAP)$173,149  $150,441  $122,662  $149,411  $138,138 $323,590  $276,151 

WINTRUST SUBSIDIARIES AND LOCATIONS

Wintrust is a financial holding company whose common stock is traded on the Nasdaq Global Select Market (Nasdaq: WTFC). Its 15 community bank subsidiaries are: Lake Forest Bank & Trust Company, N.A., Hinsdale Bank & Trust Company, N.A., Wintrust Bank, N.A., in Chicago, Libertyville Bank & Trust Company, N.A., Barrington Bank & Trust Company, N.A., Crystal Lake Bank & Trust Company, N.A., Northbrook Bank & Trust Company, N.A., Schaumburg Bank & Trust Company, N.A., Village Bank & Trust, N.A., in Arlington Heights, Beverly Bank & Trust Company, N.A. in Chicago, Wheaton Bank & Trust Company, N.A., State Bank of The Lakes, N.A., in Antioch, Old Plank Trail Community Bank, N.A. in New Lenox, St. Charles Bank & Trust Company, N.A. and Town Bank, N.A., in Hartland, Wisconsin.

In addition to the locations noted above, the banks also operate facilities in Illinois in Addison, Algonquin, Aurora, Bloomingdale, Buffalo Grove, Burbank, Cary, Clarendon Hills, Crete, Countryside, Darien, Deerfield, Des Plaines, Downers Grove, Elgin, Elk Grove Village, Elmhurst, Evanston, Evergreen Park, Frankfort, Geneva, Glen Ellyn, Glencoe, Glenview, Gurnee, Grayslake, Hanover Park, Highland Park, Highwood, Hoffman Estates, Homer Glen, Island Lake, Itasca, Joliet, Lake Bluff, Lake Villa, Lansing, Lemont, Lindenhurst, Lynwood, Markham, Maywood, McHenry, Mokena, Mount Prospect, Mundelein, Naperville, North Chicago, Northfield, Norridge, Oak Lawn, Oak Brook, Orland Park, Palatine, Park Ridge, Prospect Heights, Ravinia, Riverside, Rolling Meadows, Roselle, Round Lake Beach, Shorewood, Skokie, South Holland, South Elgin, Spring Grove, Steger, Stone Park, Vernon Hills, Wauconda, Waukegan, Western Springs, Willowbrook, Wilmette, Winnetka and Wood Dale, and in Wisconsin in Albany, Burlington, Clinton, Darlington, Delafield, Delavan, Elm Grove, Genoa City, Kenosha, Lake Geneva, Madison, Menomonee Falls, Milwaukee, Monroe, Pewaukee, Racine, Sharon, Wales, Walworth and Wind Lake, and in Dyer, Indiana and in Naples, Florida.

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

  • FIRST Insurance Funding, a division of Lake Forest Bank & Trust Company, N.A., and Wintrust Life Finance, a division of Lake Forest Bank & Trust Company, N.A., serve commercial and life insurance loan customers, respectively, throughout the United States.
  • First Insurance Funding of Canada serves commercial insurance loan customers throughout Canada.
  • Tricom, Inc. of Milwaukee provides high-yielding, short-term accounts receivable financing and value-added out-sourced administrative services, such as data processing of payrolls, billing and cash management services, to temporary staffing service clients located throughout the United States.
  • Wintrust Mortgage, a division of Barrington Bank & Trust Company, N.A., engages primarily in the origination and purchase of residential mortgages for sale into the secondary market through origination offices located throughout the United States. Loans are also originated nationwide through relationships with wholesale and correspondent offices.
  • Wintrust Investments, LLC is a broker-dealer providing a full range of private client and brokerage services to clients and correspondent banks located primarily in the Midwest.
  • Great Lakes Advisors LLC provides money management services and advisory services to individual accounts.
  • The Chicago Trust Company, N.A., a trust subsidiary, allows Wintrust to service customers’ trust and investment needs at each banking location.
  • Wintrust Asset Finance offers direct leasing opportunities.
  • CDEC provides Qualified Intermediary services (as defined by U.S. Treasury regulations) for taxpayers seeking to structure tax-deferred like-kind exchanges under Internal Revenue Code Section 1031.

FORWARD-LOOKING STATEMENTS

This document contains forward-looking statements within the meaning of federal securities laws. Forward-looking information can be identified through the use of words such as “intend,” “plan,” “project,” “expect,” “anticipate,” “believe,” “estimate,” “contemplate,” “possible,” “will,” “may,” “should,” “would” and “could.” Forward-looking statements and information are not historical facts, are premised on many factors and assumptions, and represent only management’s expectations, estimates and projections regarding future events. Similarly, these statements are not guarantees of future performance and involve certain risks and uncertainties that are difficult to predict, such as the impacts of the COVID-19 pandemic, and which may include, but are not limited to, those listed below and the Risk Factors discussed under Item 1A of the Company’s 2019 Annual Report on Form 10-K and in any of the Company’s subsequent SEC filings. The Company intends such forward-looking statements to be covered by the safe harbor provisions for forward-looking statements contained in the Private Securities Litigation Reform Act of 1995, and is including this statement for purposes of invoking these safe harbor provisions. Such forward-looking statements may be deemed to include, among other things, statements relating to the Company’s future financial performance, the performance of its loan portfolio, the expected amount of future credit reserves and charge-offs, delinquency trends, growth plans, regulatory developments, securities that the Company may offer from time to time, and management’s long-term performance goals, as well as statements relating to the anticipated effects on financial condition and results of operations from expected developments or events, the Company’s business and growth strategies, including future acquisitions of banks, specialty finance or wealth management businesses, internal growth and plans to form additional de novo banks or branch offices. Actual results could differ materially from those addressed in the forward-looking statements as a result of numerous factors, including the following:

  • the severity, magnitude and duration of the COVID-19 pandemic and the direct and indirect impact of such pandemic, as well as responses to the pandemic by the government, businesses and consumers, on our operations and personnel, commercial activity and demand across our business and our customers’ businesses;
  • the disruption of global, national, state and local economies associated with the COVID-19 pandemic, which could affect the Company’s liquidity and capital positions, impair the ability of our borrowers to repay outstanding loans, impair collateral values and further increase our allowance for credit losses;
  • the impact of the COVID-19 pandemic on our financial results, including possible lost revenue and increased expenses (including the cost of capital), as well as possible goodwill impairment charges;
  • economic conditions that affect the economy, housing prices, the job market and other factors that may adversely affect the Company’s liquidity and the performance of its loan portfolios, particularly in the markets in which it operates;
  • negative effects suffered by us or our customers resulting from changes in U.S. trade policies;
  • the extent of defaults and losses on the Company’s loan portfolio, which may require further increases in its allowance for credit losses;
  • estimates of fair value of certain of the Company’s assets and liabilities, which could change in value significantly from period to period;
  • the financial success and economic viability of the borrowers of our commercial loans;
  • commercial real estate market conditions in the Chicago metropolitan area and southern Wisconsin;
  • the extent of commercial and consumer delinquencies and declines in real estate values, which may require further increases in the Company’s allowance for credit losses;
  • inaccurate assumptions in our analytical and forecasting models used to manage our loan portfolio;
  • changes in the level and volatility of interest rates, the capital markets and other market indices (including developments and volatility arising from or related to the COVID-19 pandemic) that may affect, among other things, the Company’s liquidity and the value of its assets and liabilities;
  • competitive pressures in the financial services business which may affect the pricing of the Company’s loan and deposit products as well as its services (including wealth management services), which may result in loss of market share and reduced income from deposits, loans, advisory fees and income from other products;
  • failure to identify and complete favorable acquisitions in the future or unexpected difficulties or developments related to the integration of the Company’s recent or future acquisitions;
  • unexpected difficulties and losses related to FDIC-assisted acquisitions;
  • harm to the Company’s reputation;
  • any negative perception of the Company’s financial strength;
  • ability of the Company to raise additional capital on acceptable terms when needed;
  • disruption in capital markets, which may lower fair values for the Company’s investment portfolio;
  • ability of the Company to use technology to provide products and services that will satisfy customer demands and create efficiencies in operations and to manage risks associated therewith;
  • failure or breaches of our security systems or infrastructure, or those of third parties;
  • security breaches, including denial of service attacks, hacking, social engineering attacks, malware intrusion or data corruption attempts and identity theft;
  • adverse effects on our information technology systems resulting from failures, human error or cyberattacks;
  • adverse effects of failures by our vendors to provide agreed upon services in the manner and at the cost agreed, particularly our information technology vendors;
  • increased costs as a result of protecting our customers from the impact of stolen debit card information;
  • accuracy and completeness of information the Company receives about customers and counterparties to make credit decisions;
  • ability of the Company to attract and retain senior management experienced in the banking and financial services industries;
  • environmental liability risk associated with lending activities;
  • the impact of any claims or legal actions to which the Company is subject, including any effect on our reputation;
  • losses incurred in connection with repurchases and indemnification payments related to mortgages and increases in reserves associated therewith;
  • the loss of customers as a result of technological changes allowing consumers to complete their financial transactions without the use of a bank;
  • the soundness of other financial institutions;
  • the expenses and delayed returns inherent in opening new branches and de novo banks;
  • examinations and challenges by tax authorities, and any unanticipated impact of the Tax Act;
  • changes in accounting standards, rules and interpretations such as the new CECL standard and related changes to address the impact of COVID-19, and the impact on the Company’s financial statements;
  • the ability of the Company to receive dividends from its subsidiaries;
  • uncertainty about the discontinued use of LIBOR and transition to an alternative rate;
  • a decrease in the Company’s capital ratios, including as a result of declines in the value of its loan portfolios, or otherwise;
  • legislative or regulatory changes, particularly changes in regulation of financial services companies and/or the products and services offered by financial services companies, including those changes that are in response to the COVID-19 pandemic, including without limitation the CARES Act and the rules and regulations that may be promulgated thereunder;
  • a lowering of our credit rating;
  • changes in U.S. monetary policy and changes to the Federal Reserve’s balance sheet, including changes in response to the COVID-19 pandemic 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; and
  • fluctuations in the stock market, which may have an adverse impact on the Company’s wealth management business and brokerage operation.

Therefore, there can be no assurances that future actual results will correspond to these forward-looking statements. The reader is cautioned not to place undue reliance on any forward-looking statement made by the Company. Any such statement speaks only as of the date the statement was made or as of such date that may be referenced within the statement. The Company undertakes no obligation to update any forward-looking statement to reflect the impact of circumstances or events after the date of the press release. Persons are advised, however, to consult further disclosures management makes on related subjects in its reports filed with the Securities and Exchange Commission and in its press releases.

CONFERENCE CALL, WEBCAST AND REPLAY

The Company will hold a conference call on Wednesday, July 22, 2020 at 11:00 a.m. (Central Time) regarding second quarter 2020 results. Individuals interested in listening should call (877) 363-5049 and enter Conference ID #6266965. A simultaneous audio-only webcast and replay of the conference call as well as an accompanying slide presentation may be accessed via the Company’s website at https://www.wintrust.com, Investor Relations, Investor News and Events, Presentations & Conference Calls. The text of the second quarter 2020 earnings press release will 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.

 



    



  


  

    
FAQ
  
  

  
  
    

      

        
What was Wintrust Financial's net income for Q2 2020?

        

          Wintrust Financial reported a net income of $21.7 million for Q2 2020.
        

      

    

  
    

      

        
How did Wintrust Financial's earnings per share change in Q2 2020?

        

          Earnings per share decreased to $0.34, down 67.3% from Q1 2020.
        

      

    

  
    

      

        
What impact did PPP loans have on Wintrust Financial's assets?

        

          PPP loans contributed to an increase in total assets by $4.7 billion.
        

      

    

  
    

      

        
What was the provision for credit losses reported by Wintrust Financial?

        

          The provision for credit losses was $135.1 million in Q2 2020.
        

      

    

  
    

      

        
How much did Wintrust Financial raise from their recent stock issuance?

        

          Wintrust Financial raised $278.4 million from the preferred stock issuance.
        

      

    

  




  


  
  



  
  

    

      
        
          
           
          Stock WTFC logo
        
      
    

    
    

      Wintrust Financial Corp
      
NASDAQ:WTFC

    

    
  


  
  

    
WTFC Rankings

    

      
#1040 Ranked by Market Cap

      
#1572 Ranked by Dividends

            
    

  

  
  

  
  
    

      
WTFC Latest News

      

        
          

            
Oct 24, 2024

            Wintrust Financial Corporation Announces Cash Dividends
          

        
          

            
Oct 21, 2024

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

        
          

            
Sep 30, 2024

            Wintrust Financial Corporation Announces Third Quarter and Year-to-Date 2024 Earnings Release Schedule
          

        
          

            
Aug 22, 2024

            Wintrust Expands Workplace Solutions Offering for HSAs, FSAs, and More, Powered by First Dollar
          

        
          

            
Aug 1, 2024

            Wintrust Financial Corporation Completes Its Merger With Macatawa Bank Corporation
          

        
      

    

  
    
  

  
  

    
WTFC Stock Data
      
        
      

    

       
      

         
        7.08B
      

      
      

         
        66.50M
      

       
      

         
        1.53%
      

       
      

         
        91.98%
      

       
      

         
        1.13%
      

       
      

         
        Banks - Regional
      

       
      

        
        State Commercial Banks
      

       
      

        
        Link
      

       
      

        
        United States of America
      

       
      

        
        ROSEMONT