Wintrust Financial Corporation Reports Third Quarter 2011 Net Income of $30.2 Million, an Increase of 50%
Copyright: | 2011 GlobeNewswire, Inc. |
Source: | GlobeNewswire |
Wordcount: | 22241 |
The Company's total assets of
Average earning asset growth occurred in three primary areas of the balance sheet. Average loans, including mortgages held for sale, increased by
The third quarter saw the integration of
Commenting on credit quality,
Turning to the fourth quarter,
In closing,
The Company's results in 2011 have been particularly impacted by the industry-wide volatility in residential real estate loan originations as the outstanding balances of mortgages held for sale and mortgage warehouse lending declined rapidly during the second quarter of 2011 and stabilized during the third quarter of 2011. Growth in the Company's commercial and premium finance portfolios accelerated throughout this period, partially or entirely offsetting the volatility in the residential real estate loan originations. The graph below depicts the delayed effect of the volatility on quarterly average balances in the third quarter of 2011 as period-end balances initially declined in 2011 and then grew in the second and third quarters of 2011. Total loans include mortgage loans held for sale but exclude covered loans.
Total Loans | ||
(Dollars in thousands) | ||
Month-End | Quarterly | |
Balance | Average | |
Dec-10 | $ 9,971,333 | $ 9,777,435 |
Mar-11 | 9,656,288 | 9,849,309 |
Jun-11 | 10,064,041 | 9,859,789 |
Sep-11 | 10,485,747 | 10,200,733 |
Graphs accompanying this release are available at http://media.globenewswire.com/cache/11955/file/11774.pdf
During the third quarter of 2011 the Company experienced organic growth as well as growth through acquisitions, specifically the
Growth in Period End Balances ( |
|||||
(Dollars in thousands) | |||||
Loans excluding | Loans including | ||||
Covered Loans | Covered Loans | Total Assets | Deposits | ||
Elgin | $ 145,832 | $ 145,832 | $ 268,282 | $ 244,716 | |
First |
5,936 | 305,950 | 633,408 | 614,930 | |
Organic | 195,866 | 167,258 | 397,217 | 187,102 | |
$ 347,634 | $ 619,040 | $ 1,298,907 | $ 1,046,748 |
Graphs accompanying this release are available at http://media.globenewswire.com/cache/11955/file/11775.pdf
The following table and graph illustrate the change in average balances attributable to each of organic and acquisition growth for the third quarter of 2011 compared to the second quarter of 2011.
Growth in Average Balances (Q3 2011 vs Q2 2011) | |||||
(Dollars in thousands) | |||||
Loans excluding | Loans including | ||||
Covered Loans | Covered Loans | Total Assets | Deposits | ||
Elgin | $ 3,130 | $ 3,130 | $ 5,766 | $ 5,280 | |
First |
5,135 | 286,345 | 651,340 | 599,107 | |
Organic | 332,679 | 313,343 | 764,185 | 550,942 | |
$ 340,944 | $ 602,818 | $ 1,421,291 | $ 1,155,329 |
Graphs accompanying this release are available at http://media.globenewswire.com/cache/11955/file/11776.pdf
% or (4) | % or | |||||||||
basis point (bp) | basis point (bp) | |||||||||
change | change | |||||||||
Three Months Ended | from | from | ||||||||
2nd Quarter | 3rd Quarter | |||||||||
2011 | 2011 | 2010 | 2011 | 2010 | ||||||
Net income | $ 30,202 | $ 11,750 | $ 20,098 | 157% | 50% | |||||
Net income per common share – diluted | $ 0.65 | $ 0.25 | $ 0.47 | 160% | 38% | |||||
Pre-tax adjusted earnings (2) | $ 60,936 | $ 54,127 | $ 49,843 | 13% | 22% | |||||
Net revenue (1) | $ 185,657 | $ 145,358 | $ 157,636 | 28% | 18% | |||||
Net interest income | $ 118,410 | $ 108,706 | $ 102,980 | 9% | 15% | |||||
Net interest margin (2) | 3.37% | 3.40% | 3.22% | (3) bp | 15 bp | |||||
Net overhead ratio (3) | 1.00% | 1.72% | 1.28% | (72) bp | (28) bp | |||||
Return on average assets | 0.77% | 0.33% | 0.57% | 44 bp | 20 bp | |||||
Return on average common equity | 7.94% | 3.05% | 5.44% | 489 bp | 250 bp | |||||
At end of period | ||||||||||
Total assets | $ 15,914,804 | $ 14,615,897 | $ 14,100,368 | 36% | 13% | |||||
Total loans, excluding loans held-for-sale, excluding covered loans | $ 10,272,711 | $ 9,925,077 | $ 9,461,155 | 14% | 9% | |||||
Total loans, including loans held-for-sale, excluding covered loans | $ 10,485,747 | $ 10,064,041 | $ 9,781,595 | 17% | 7% | |||||
Total deposits | $ 12,306,008 | $ 11,259,260 | $ 10,962,239 | 38% | 12% | |||||
Total shareholders' equity | $ 1,528,187 | $ 1,473,386 | $ 1,398,912 | 15% | 9% | |||||
(1) Net revenue is net interest income plus non-interest income. | ||||||||||
(2) See "Supplemental Financial Measures/Ratios" 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. | ||||||||||
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 web site at www.wintrust.com by choosing "Financial Reports" under the "Investor Relations" heading, and then choosing "Supplemental Financial Info."
Items Impacting Comparative Financial Results: Acquisitions and Capital
Acquisitions
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Comparable Periods
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Summary of
- Northbrook assumed approximately
$887 million of the outstanding deposits and approximately$959 million of assets of First Chicago, prior to purchase accounting adjustments. A bargain purchase gain of$27.4 million was recognized on this transaction. - Schaumburg assumed approximately
$161 million of the outstanding deposits and approximately$163 million of assets of TBOC, prior to purchase accounting adjustments. A bargain purchase gain of$8.6 million was recognized on this transaction. - Northbrook assumed approximately
$50 million of the outstanding deposits and approximately$51 million of assets of CFBC, prior to purchase accounting adjustments. A bargain purchase gain of$2.0 million was recognized on this transaction. - Northbrook assumed approximately
$120 million of the outstanding deposits and approximately <money>$188 million of assets of Ravenswood, prior to purchase accounting adjustments. A bargain purchase gain of$6.8 million was recognized on this transaction. - Northbrook assumed approximately
$160 million of the outstanding deposits and approximately$170 million of assets of Lincoln Park, prior to purchase accounting adjustments. A bargain purchase gain of$4.2 million was recognized on this transaction. Wheaton assumed approximately$400 million of the outstanding deposits and approximately$370 million of assets of Wheatland, prior to purchase accounting adjustments. A bargain purchase gain of$22.3 million was recognized on this transaction.
Loans comprise the majority of the assets acquired in the
Wintrust Financial Corporate Headquarters
On
Capital Ratios
As of
Financial Performance Overview – Third quarter of 2011
For the third quarter of 2011, net interest income totaled
- Average earning assets for the third quarter of 2011 increased by
$1.2 billion compared to the third quarter of 2010. Average earning asset growth over the past 12 months was primarily a result of the$597.2 million increase in average loans,$354.3 million of average covered loan growth from theFDIC -assisted bank acquisitions and a$275.1 million increase in average liquidity management and other earning assets. The$597.2 million increase in average loans was comprised of a$360.1 million increase in commercial and industrial loans, a$241.4 million increase in life insurance premium finance loans, a$175.5 million increase in commercial premium finance loans and a$48.0 million increase in commercial real estate loans, partially offset by a decrease in mortgages held for sale of$135.2 million , a decrease in mortgage warehouse lending of$54.1 million and a decrease in all other loans of$38.5 million . The decrease in all other loans was primarily related to home equity loans. The shift in growth over the past 12 months toward commercial and industrial loans is a reflection of the commercial initiatives the Company has implemented. The average earning asset growth of$1.2 billion over the past 12 months was primarily funded by a$619.4 million increase in the average balances of interest-bearing deposits, an increase in the average balance of net free funds of$322.4 million and an increase in wholesale funding of$284.7 million .
- Average earning assets for the third quarter of 2011 increased by
$1.1 billion compared to the second quarter of 2011. Average earning asset growth over the past three months was primarily the result of a$492.1 million increase in average liquidity management assets, a$340.9 million increase in average loans and a$261.9 million increase in covered loans. The growth in liquidity management assets was primarily in interest-bearing deposit balances as liquidity continues to accumulate, primarily as a result of deposit growth exceeding strong loan growth. The net interest margin was down three basis points from the previous quarter as the very low yield on excess liquidity and the continued declining value of net free funds more than offset positive repricing of retail interest-bearing deposits. Growth in average loans was due to a$152.3 million increase in premium finance loans, a$141.4 million increase in commercial and industrial loans and increases totaling$65.6 million in mortgages held for sale and mortgage warehouse lending as residential originations picked up slightly in the third quarter of 2011 as a result of lower mortgage interest rates. The average earning asset growth of$1.1 billion over the past three months was primarily funded by a$1.2 billion increase in deposits. Approximately$599.1 million of the deposit growth is attributable to the addition of First Chicago in the third quarter of 2011.
The net interest margin for the third quarter of 2011 was 3.37% compared to 3.22% in the third quarter of 2010 and 3.40% in the second quarter of 2011.
- The 15 basis point increase in the third quarter of 2011 compared to the third quarter of 2010 was primarily attributable to a 43 basis point decline in the cost of interest-bearing deposits over the last 12 months. Partially offsetting this improvement was a decrease in accretable discount recognized as interest income on the purchased life insurance premium portfolio as prepayments declined and the negative impact of pricing pressures on the commercial premium finance portfolio.
- The three basis point decrease in net interest margin in the third quarter of 2011 compared to the second quarter of 2011 resulted from the large increase in interest-bearing cash balances which yielded only 32 basis points in the third quarter and continued negative pricing pressures on the commercial premium finance portfolio. Excess liquidity balances continue to restrict net interest margin expansion as deposit growth exceeded strong loan growth. Partially offsetting these items was continued lower repricing of interest-bearing deposits, as the cost of this funding source declined by 12 basis points in the third quarter.
Non-interest income totaled
Non-interest expense totaled
Financial Performance Overview – First Nine Months of 2011
The net interest margin for the first nine months of 2011 was 3.41%, compared to 3.34% in the first nine months of 2010. Average earning assets for the first nine months of 2011 increased by
Non-interest income totaled
Non-interest expense totaled
The Company's effective tax rate increased to 39.3% for the first nine months of 2011, up from 37.6% in the first nine months of 2010. This increase is primarily attributable to increases in state income taxes, including the impact of a 2.2% increase in the
Financial Performance Overview – Credit Quality
Non-performing loans, excluding covered loans, totaled
The provision for credit losses totaled
Excluding the allowance for covered loan losses, the allowance for credit losses at
Three Months Ended | Nine Months Ended | |||
Selected Financial Highlights | ||||
2011 | 2010 | 2011 | 2010 | |
Selected Financial Condition Data (at end of period): | ||||
Total assets | $ 15,914,804 | $ 14,100,368 | ||
Total loans, excluding covered loans | 10,272,711 | 9,461,155 | ||
Total deposits | 12,306,008 | 10,962,239 | ||
Junior subordinated debentures | 249,493 | 249,493 | ||
Total shareholders' equity | 1,528,187 | 1,398,912 | ||
Selected Statements of Income Data: | ||||
Net interest income | $ 118,410 | $ 102,980 | $ 336,730 | $ 303,159 |
Net revenue (1) | 185,657 | 157,636 | 481,516 | 450,859 |
Pre-tax adjusted earnings (2) | 60,936 | 49,843 | 164,110 | 138,227 |
Net income | 30,202 | 20,098 | 58,354 | 49,125 |
Net income per common share – Basic | $ 0.82 | $ 0.49 | $ 1.57 | $ 1.17 |
Net income per common share – Diluted | $ 0.65 | $ 0.47 | $ 1.26 | $ 1.12 |
Selected Financial Ratios and Other Data: | ||||
Performance Ratios: | ||||
Net interest margin (2) | 3.37% | 3.22% | 3.41% | 3.34% |
Non-interest income to average assets | 1.72% | 1.56% | 1.33% | 1.48% |
Non-interest expense to average assets | 2.72% | 2.85% | 2.77% | 2.77% |
Net overhead ratio (3) | 1.00% | 1.28% | 1.44%1.29% | |
Efficiency ratio (2) (4) | 57.21% | 67.01% | 62.67% | 62.45% |
Return on average assets | 0.77% | 0.57% | 0.54% | 0.49% |
Return on average common equity | 7.94% | 5.44% | 5.21% | 4.43% |
Average total assets | $ 15,526,427 | $ 14,015,757 | $ 14,549,696 | $ 13,322,460 |
Average total shareholders' equity | 1,507,717 | 1,391,507 | 1,468,808 | 1,320,611 |
Average loans to average deposits ratio (excluding covered loans) | 85.0% | 88.7% | 88.9% | 91.0% |
Average loans to average deposits ratio (including covered loans) | 90.7% | 91.7% | 93.1% | 92.8% |
Common Share Data at end of period: | ||||
Market price per common share | $ 25.81 | $ 32.41 | ||
Book value per common share (2) | $ 33.92 | $ 35.70 | ||
Tangible common book value per share (2) | $ 26.47 | $ 26.34 | ||
Common shares outstanding | 35,924,066 | 31,143,740 | ||
Other Data at end of period:(8) | ||||
Leverage Ratio (5) | 9.6% | 10.3% | ||
Tier 1 capital to risk-weighted assets (5) | 12.0% | 12.3% | ||
Total capital to risk-weighted assets (5) | 13.3% | 13.5% | ||
Tangible common equity ratio (TCE) (2)(7) | 7.4% | 5.9% | ||
Allowance for credit losses (6) | $ 132,051 | $ 112,807 | ||
Non-performing loans | $ 133,976 | $ 134,323 | ||
Allowance for credit losses to total loans (6) | 1.29% | 1.19% | ||
Non-performing loans to total loans | 1.30% | 1.42% | ||
Number of: | ||||
Bank subsidiaries | 15 | 15 | ||
Non-bank subsidiaries | 7 | 8 | ||
Banking offices | 99 | 85 | ||
(1) Net revenue includes net interest income and non-interest income | ||||
(2) See "Supplemental Financial Measures/Ratios" 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 total average assets. A lower ratio indicates a higher degree of efficiency. | ||||
(4) The efficiency ratio is calculated by dividing total non-interest expense by tax-equivalent net revenue (less securities gains or losses). A lower ratio indicates more efficient revenue generation. | ||||
(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, but excludes the allowance for covered loan losses. | ||||
(7) Total shareholders' equity minus preferred stock and total intangible assets divided by total assets minus total intangible assets. | ||||
(8) Asset quality ratios exclude covered loans. |
WINTRUST FINANCIAL CORPORATION AND SUBSIDIARIES | |||
CONSOLIDATED STATEMENTS OF CONDITION | |||
(Unaudited) | (Unaudited) | ||
(In thousands) | 2011 | 2010 | 2010 |
Assets | |||
Cash and due from banks | $ 147,270 | $ 153,690 | $ 155,067 |
Federal funds sold and securities purchased under resale agreements | 13,452 | 18,890 | 88,913 |
Interest-bearing deposits with other banks | 1,101,353 | 865,575 | 1,224,584 |
Available-for-sale securities, at fair value | 1,267,682 | 1,496,302 | 1,324,179 |
Trading account securities | 297 | 4,879 | 4,935 |
99,749 | 82,407 | 80,445 | |
Brokerage customer receivables | 27,935 | 24,549 | 25,442 |
Mortgage loans held-for-sale, at fair value | 204,081 | 356,662 | 307,231 |
Mortgage loans held-for-sale, at lower of cost or market | 8,955 | 14,785 | 13,209 |
Loans, net of unearned income, excluding covered loans | 10,272,711 | 9,599,886 | 9,461,155 |
Covered loans | 680,075 | 334,353 | 353,840 |
Total loans | 10,952,786 | 9,934,239 | 9,814,995 |
Less: Allowance for loan losses | 118,649 | 113,903 | 110,432 |
Less: Allowance for covered loan losses | 12,496 | -- | -- |
Net loans | 10,821,641 | 9,820,336 | 9,704,563 |
Premises and equipment, net | 412,478 | 363,696 | 353,445 |
379,306 | 118,182 | 161,640 | |
Accrued interest receivable and other assets | 468,711 | 366,438 | 365,496 |
Trade date securities receivable | 637,112 | -- | -- |
Goodwill | 302,369 | 281,190 | 278,025 |
Other intangible assets | 22,413 | 12,575 | 13,194 |
Total assets | $ 15,914,804 | $ 13,980,156 | $ 14,100,368 |
Liabilities and Shareholders' Equity | |||
Deposits: | |||
Non-interest bearing | $ 1,631,709 | $ 1,201,194 | $ 1,042,730 |
Interest bearing | 10,674,299 | 9,602,479 | 9,919,509 |
Total deposits | 12,306,008 | 10,803,673 | 10,962,239 |
Notes payable | 3,004 | 1,000 | 1,000 |
474,570 | 423,500 | 414,832 | |
Other borrowings | 448,082 | 260,620 | 241,522 |
Secured borrowings - owed to securitization investors | 600,000 | 600,000 | 600,000 |
Subordinated notes | 40,000 | 50,000 | 55,000 |
Junior subordinated debentures | 249,493 | 249,493 | 249,493 |
Trade date securities payable | 73,874 | -- | 2,045 |
Accrued interest payable and other liabilities | 191,586 | 155,321 | 175,325 |
Total liabilities | 14,386,617 | 12,543,607 | 12,701,456 |
Shareholders' Equity: | |||
Preferred stock | 49,736 | 49,640 | 287,234 |
Common stock | 35,926 | 34,864 | 31,145 |
Surplus | 997,854 | 682,318 | |
Treasury stock | (68) | -- | (51) |
Retained earnings | 441,268 | 392,354 | 394,323 |
Accumulated other comprehensive income (loss) | 3,471 | (5,512) | 3,943 |
Total shareholders' equity | 1,528,187 | 1,436,549 | 1,398,912 |
Total liabilities and shareholders' equity | $ 15,914,804 | $ 13,980,156 | $ 14,100,368 |
WINTRUST FINANCIAL CORPORATION AND SUBSIDIARIES | ||||
CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED) | ||||
Three Months Ended | Nine Months Ended | |||
(In thousands, except per share data) | 2011 | 2010 | 2011 | 2010 |
Interest income | ||||
Interest and fees on loans | $ 140,543 | $ 137,902 | $ 409,424 | $ 403,244 |
Interest bearing deposits with banks | 917 | 1,339 | 2,723 | 3,828 |
Federal funds sold and securities purchased under resale agreements | 28 | 35 | 83 | 118 |
Securities | 12,667 | 7,438 | 33,645 | 29,668 |
Trading account securities | 15 | 19 | 38 | 383 |
584 | 488 | 1,706 | 1,419 | |
Brokerage customer receivables | 197 | 180 | 557 | 484 |
Total interest income | 154,951 | 147,401 | 448,176 | 439,144 |
Interest expense | ||||
Interest on deposits | 21,893 | 31,088 | 68,253 | 95,926 |
Interest on |
4,166 | 4,042 | 12,134 | 12,482 |
Interest on notes payable and other borrowings | 2,874 | 1,411 | 8,219 | 4,312 |
Interest on secured borrowings - owed to securitization investors | 3,003 | 3,167 | 9,037 | 9,276 |
Interest on subordinated notes | 168 | 265 | 574 | 762 |
Interest on junior subordinated debentures | 4,437 | 4,448 | 13,229 | 13,227 |
Total interest expense | 36,541 | 44,421 | 111,446 | 135,985 |
Net interest income | 118,410 | 102,980 | 336,730 | 303,159 |
Provision for credit losses | 29,290 | 25,528 | 83,821 | 95,870 |
Net interest income after provision for credit losses | 89,120 | 77,452 | 252,909 | 207,289 |
Non-interest income | ||||
Wealth management | 11,994 | 8,973 | 32,831 | 26,833 |
Mortgage banking | 14,469 | 20,980 | 38,917 | 38,693 |
Service charges on deposit accounts | 4,085 | 3,384 | 10,990 | 10,087 |
Gains on available-for-sale securities, net | 225 | 9,235 | 1,483 | 9,673 |
Gain on bargain purchases | 27,390 | 6,593 | 37,974 | 43,981 |
Trading gains | 591 | 210 | 121 | 4,554 |
Other | 8,493 | 5,281 | 22,470 | 13,879 |
Total non-interest income | 67,247 | 54,656 | 144,786 | 147,700 |
Non-interest expense | ||||
Salaries and employee benefits | 61,863 | 57,014 | 171,041 | 156,735 |
Equipment | 4,501 | 4,203 | 13,174 | 12,144 |
Occupancy, net | 7,512 | 6,254 | 20,789 | 18,517 |
Data processing | 3,836 | 3,891 | 10,506 | 10,967 |
Advertising and marketing | 2,119 | 1,650 | 5,173 | 4,434 |
Professional fees | 5,085 | 4,555 | 13,164 | 11,619 |
Amortization of other intangible assets | 970 | 701 | 2,363 | 2,020 |
3,100 | 4,642 | 10,899 | 13,456 | |
OREO expenses, net | 5,134 | 4,767 | 17,519 | 11,948 |
Other | 12,201 | 12,046 | 37,008 | 34,484 |
Total non-interest expense | 106,321 | 99,723 | 301,636 | 276,324 |
Income before taxes | 50,04632,385 | 96,059 | 78,665 | |
Income tax expense | 19,844 | 12,287 | 37,705 | 29,540 |
Net income | $ 30,202 | $ 20,098 | $ 58,354 | $ 49,125 |
Preferred stock dividends and discount accretion | $ 1,032 | $ 4,943 | $ 3,096 | $ 14,830 |
Net income applicable to common shares | $ 29,170 | $ 15,155 | $ 55,258 | $ 34,295 |
Net income per common share - Basic | $ 0.82 | $ 0.49 | $ 1.57 | $ 1.17 |
Net income per common share - Diluted | $ 0.65 | $ 0.47 | $ 1.26 | $ 1.12 |
Cash dividends declared per common share | $ 0.09 | $ 0.09 | $ 0.18 | $ 0.18 |
Weighted average common shares outstanding | 35,550 | 31,117 | 35,152 | 29,396 |
Dilutive potential common shares | 10,551 | 988 | 8,683 | 1,132 |
Average common shares and dilutive common shares | 46,101 | 32,105 | 43,835 | 30,528 |
SUPPLEMENTAL FINANCIAL MEASURES/RATIOS
The accounting and reporting policies of
Management reviews yields on certain asset categories and the net interest margin of the Company and its banking subsidiaries on a fully taxable-equivalent ("FTE") basis. In this non-GAAP presentation, net interest income is adjusted to reflect tax-exempt interest income on an equivalent before-tax basis. This measure ensures comparability of net interest income arising from both taxable and tax-exempt sources. Net interest income on a FTE 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
The following table presents a reconciliation of certain non-GAAP performance measures and ratios used by the Company to evaluate and measure the Company's performance to the most directly comparable GAAP financial measures for the last 5 quarters:
Three Months Ended | Nine Months Ended | ||||||
(Dollars and shares in thousands) | 2011 | 2011 | 2011 | 2010 | 2010 | 2011 | 2010 |
Calculation of Net Interest Margin and Efficiency Ratio | |||||||
(A) Interest Income (GAAP) | $ 154,951 | $ 145,445 | $ 147,780 | $ 153,962 | $ 147,401 | $ 448,176 | $ 439,144 |
Taxable-equivalent adjustment: | |||||||
- Loans | 100 | 110 | 116 | 79 | 85 | 326 | 254 |
- Liquidity management assets | 313 | 296 | 295 | 326 | 324 | 904 | 1,051 |
- Other earning assets | 6 | 2 | 3 | -- | 7 | 11 | 16 |
Interest Income - FTE | $ 155,370 | $ 145,853 | $ 148,194 | $ 154,367 | $ 147,817 | $ 449,417 | $ 440,465 |
(B) Interest Expense (GAAP) | 36,541 | 36,739 | 38,166 | 41,285 | 44,421 | 111,446 | 135,985 |
Net interest income - FTE | $ 118,829 | $ 109,114 | $ 110,028 | $ 113,082 | $ 103,396 | $ 337,971 | $ 304,480 |
(C) Net Interest Income (GAAP) (A minus B) | $ 118,410 | $ 108,706 | $ 109,614 | $ 112,677 | $ 102,980 | $ 336,730 | $ 303,159 |
(D) Net interest margin (GAAP) | 3.36% | 3.38% | 3.46% | 3.44% | 3.20% | 3.40% | 3.32% |
Net interest margin - FTE | 3.37% | 3.40% | 3.48% | 3.46% | 3.22% | 3.41% | 3.34% |
(E) Efficiency ratio (GAAP) | 57.34% | 67.41% | 65.23% | 67.65% | 67.20% | 62.84% | 62.63% |
Efficiency ratio - FTE | 57.21% | 67.22% | 65.05% | 67.48% | 67.01% | 62.67% | 62.45% |
Calculation of Tangible Common Equity ratio (at period end) | |||||||
Total shareholders' equity | $ 1,528,187 | $ 1,473,386 | $ 1,453,253 | $ 1,436,549 | $ 1,398,912 | ||
Less: Preferred stock | (49,736) | (49,704) | (49,672) | (49,640) | (287,234) | ||
Less: Intangible assets | (324,782) | (294,833) | (293,996) | (293,765) | (291,219) | ||
(F) Total tangible common shareholders' equity | $ 1,153,669 | $ 1,128,849 | $ 1,109,585 | $ 1,093,144 | $ 820,459 | ||
Total assets | $ 15,914,804 | $ 14,615,897 | $ 14,094,294 | $ 13,980,156 | $ 14,100,368 | ||
Less: Intangible assets | (324,782) | (294,833) | (293,996) | (293,765) | (291,219) | ||
(G) Total tangible assets | $ 15,590,022 | $ 14,321,064 | $ 13,800,298 | $ 13,686,391 | $ 13,809,149 | ||
Tangible common equity ratio (F/G) | 7.4% | 7.9% | 8.0% | 8.0% | 5.9% | ||
Calculation of Pre-Tax Adjusted Earnings | |||||||
Income before taxes | $ 50,046 | $ 18,965 | $ 27,048 | $ 22,142 | $ 32,385 | $ 96,059 | $ 78,665 |
Add: Provision for credit losses | 29,290 | 29,187 | 25,344 | 28,795 | 25,528 | 83,821 | 95,870 |
Add: OREO expenses, net | 5,134 | 6,577 | 5,808 | 7,384 | 4,767 | 17,519 | 11,948 |
Add: Recourse obligation on loans previously sold | 266 | (916) | 103 | 1,365 | 1,432 | (547) | 9,605 |
Add: Covered loan expense | 336 | 806 | 342 | 162 | 1,887 | 347 | |
Add: Mortgage servicing rights fair value adjustments | 2,631 | 1,136 | (141) | (834) | 1,472 | 3,626 | 3,789 |
Less: Loss (gain) from investment partnerships | 1,439 | 240 | (356) | (499) | 135 | 1,323 | (656) |
Less: Gain on bargain purchases | (27,390) | (746) | (9,838) | (250) | (6,593) | (37,974) | (43,981) |
Less: Trading (gains) losses | (591) | 30 | 440 | (611) | (210) | (121) | (4,554) |
Less: (Gains) losses on available-for-sale securities, net | (225) | (1,152) | (106) | (159) | (9,235) | (1,483) | (9,673) |
Pre-tax adjusted earnings | $ 60,936 | $ 54,127 | $ 49,047 | $ 57,675 | $ 49,843 | $ 164,110 | $ 141,360 |
Calculation of book value per share | |||||||
Total shareholders' equity | $ 1,528,187 | $ 1,473,386 | $ 1,453,253 | $ 1,436,549 | $ 1,398,912 | ||
Less: Preferred stock | (49,736) | (49,704) | (49,672) | (49,640) | (287,234) | ||
(H) Total common equity | $ 1,478,451 | $ 1,423,682 | $ 1,403,581 | $ 1,386,909 | $ 1,111,678 | ||
Actual common shares outstanding | 35,924 | 34,988 | 34,947 | 34,864 | 31,144 | ||
Add: TEU conversion shares | 7,666 | 7,342 | 6,696 | 7,512 | -- | ||
(I) Common shares used for book value calculation | 43,590 | 42,330 | 41,643 | 42,376 | 31,144 | ||
Book value per share (H/I) | $ 33.92 | $ 33.63 | $ 33.70 | $ 32.73 | $ 35.70 | ||
Tangible common book value per share (F/I) | $ 26.47 | $ 26.67 | $ 26.65 | $ 25.80 | $ 26.34 | ||
LOANS | |||||
Loan Portfolio Mix and Growth Rates | % Growth | ||||
From (1) | From | ||||
(Dollars in thousands) | 2011 | 2010 | 2010 | 2010 | 2010 |
Balance: | |||||
Commercial | $ 2,337,098 | $ 2,049,326 | $ 1,952,791 | 19% | 20% |
Commercial real-estate | 3,465,321 | 3,338,007 | 3,331,498 | 5 | 4 |
Home equity | 879,180 | 914,412 | 919,824 | (5) | (4) |
Residential real-estate | 326,207 | 353,336 | 342,009 | (10) | (5) |
Premium finance receivables - commercial | 1,417,572 | 1,265,500 | 1,323,934 | 16 | 7 |
Premium finance receivables - life insurance | 1,671,443 | 1,521,886 | 1,434,994 | 13 | 16 |
Indirect consumer (2) | 62,452 | 51,147 | 56,575 | 30 | 10 |
Consumer and other | 113,438 | 106,272 | 99,530 | 9 | 14 |
Total loans, net of unearned income, excluding covered loans | $ 10,272,711 | $ 9,599,886 | $ 9,461,155 | 9% | 9% |
Covered loans | 680,075 | 334,353 | 353,840 | 138 | 92 |
Total loans, net of unearned income | $ 10,952,786 | $ 9,934,239 | $ 9,814,995 | 14% | 12% |
Mix: | |||||
Commercial | 21% | 21% | 20% | ||
Commercial real-estate | 32 | 34 | 34 | ||
Home equity | 8 | 9 | 9 | ||
Residential real-estate | 3 | 3 | 3 | ||
Premium finance receivables - commercial | 13 | 13 | 13 | ||
Premium finance receivables - life insurance | 15 | 15</td> | 15 | ||
Indirect consumer (2) | 1 | 1 | 1 | ||
Consumer and other | 1 | 1 | 1 | ||
Total loans, net of unearned income, excluding covered loans | 94% | 97% | 96% | ||
Covered loans | 6 | 3 | 4 | ||
Total loans, net of unearned income | 100% | 100% | 100% | ||
(1) Annualized | |||||
(2) Includes autos, boats, snowmobiles and other indirect consumer loans. | |||||
Commercial and Commercial Real-Estate Loans, excluding covered loans | > 90 Days | Allowance | ||||||||
As of |
% of | Past Due | For Loan | |||||||
Total | and Still | Losses | ||||||||
(Dollars in thousands) | Balance | Balance | Nonaccrual | Accruing(1) | Allocation | |||||
Commercial: | ||||||||||
Commercial and industrial | $ 1,414,715 | 24.4% | $ 21,055 | $ -- | $ 22,269 | |||||
Franchise | 126,854 | 2.2 | 1,792 | -- | 1,050 | |||||
Mortgage warehouse lines of credit | 132,425 | 2.3 | -- | -- | 1,041||||||
Community Advantage - homeowner associations | 74,281 | 1.3 | -- | -- | 186 | |||||
Aircraft | 18,080 | 0.3 | -- | -- | 108 | |||||
Asset-based lending | 419,737 | 7.2 | 1,989 | -- | 7,652 | |||||
Municipal | 74,723 | 1.3 | -- | -- | 1,122 | |||||
Leases | 66,671 | 1.1 | -- | -- | 335 | |||||
Other | 9,612 | 0.2 | -- | -- | 17 | |||||
Total commercial | $ 2,337,098 | 40.3% | $ 24,836 | $ -- | $ 33,780 | |||||
Commercial Real-Estate: | ||||||||||
Residential construction | $ 71,941 | 1.2 | $ 1,358 | $ 1,105 | $ 1,815 | |||||
Commercial construction | 160,421 | 2.8 | 2,860 | -- | 4,588 | |||||
Land | 199,130 | 3.4 | 31,072 | -- | 15,368 | |||||
Office | 533,930 | 9.2 | 15,432 | -- | 9,112 | |||||
Industrial | 538,248 | 9.3 | 2,160 | -- | 5,479 | |||||
Retail | 519,235 | 8.9 | 3,664 | -- | 5,503 | |||||
Multi-family | 324,777 | 5.6 | 3,423 | -- | 9,668 | |||||
Mixed use and other | 1,117,639 | 19.4 | 9,700 | -- | 12,839 | |||||
Total commercial real-estate | $ 3,465,32159.7% | $ 69,669 | $ 1,105 | $ 64,372 | ||||||
Total commercial and commercial real-estate | $ 5,802,419 | 100.0% | $ 94,505 | $ 1,105 | $ 98,152 | |||||
Commercial real-estate - collateral location by state: | ||||||||||
$ 2,833,384 | 81.8% | |||||||||
342,305 | 9.9 | |||||||||
Total primary markets | $ 3,175,689 | 91.7% | ||||||||
57,758 | 1.7 | |||||||||
40,434 | 1.2 | |||||||||
47,963 | 1.4 | |||||||||
Other (no individual state greater than 0.4%) | 143,477 | 4.0 | ||||||||
Total | $ 3,465,321 | 100.0% | ||||||||
(1) Excludes purchased non-covered loans acquired with evidence of credit quality deterioration since origination, in accordance with ASC 310-30. | ||||||||||
DEPOSITS | |||||
% Growth | |||||
From (1) | From | ||||
(Dollars in thousands) | 2011 | 2010 | 2010 | 2010 | 2010 |
Balance: | |||||
Non-interest bearing | $ 1,631,709 | $ 1,201,194 | $ 1,042,730 | 48% | 56% |
NOW | 1,633,752 | 1,561,507 | 1,551,749 | 6 | 5 |
Wealth Management deposits (2) | 730,315 | 658,660 | 710,435 | 15 | 3 |
Money Market | 2,190,117 | 1,759,866 | 1,746,168 | 33 | 25 |
Savings | 867,483 | 744,534 | 713,823 | 22 | 22 |
Time certificates of deposit | 5,252,632 | 4,877,912 | 5,197,334 | 10 | 1 |
Total deposits | $ 12,306,008 | $ 10,803,673 | $ 10,962,239 | 19% | 12% |
Mix: | |||||
Non-interest bearing | 13% | 11% | 10% | ||
NOW | 13 | 15 | 14 | ||
Wealth Management deposits (2) | 6 | 6 | 6 | ||
Money Market | 18 | 16 | 16 | ||
Savings | 7 | 7 | 7 | ||
Time certificates of deposit | 43 | 45 | 47 | ||
Total deposits | 100% | 100% | 100% | ||
(1) Annualized | |||||
(2) Represents deposit balances of the Company's subsidiary banks from brokerage customers of |
|||||
Deposit Maturity Analysis | Weighted- | |||||
As of September 30, 2011 | Non- | Average | ||||
Interest | Savings | Rate of | ||||
Bearing | and | Time | Maturing Time | |||
and | Money | Wealth | Certificates | Total | Certificates | |
(Dollars in thousands) | NOW (1) | Market (1) | Mgt. (1) | of Deposit | Deposits | of Deposit (2) |
1-3 months | $ 3,265,461 | $ 3,057,600 | $ 730,315 | $ 1,145,827 | $ 8,199,203 | 1.10% |
4-6 months | -- | -- | 810,038 | 810,038 | 1.14 | |
7-9 months | -- | -- | -- | 792,687 | 792,687 | 1.15 |
10-12 months | -- | -- | -- | 720,750 | 720,750 | 1.31 |
13-18 months | -- | -- | -- | 674,918 | 674,918 | 1.37 |
19-24 months | -- | -- | -- | 461,154 | 461,154 | 1.50 |
24+ months | -- | -- | -- | 647,258 | 647,258 | 2.27 |
Total deposits | $ 3,265,461 | $ 3,057,600 | $ 730,315 | $ 5,252,632 | $ 12,306,008 | 1.36% |
(1) Balances of non-contractual maturity deposits are shown as maturing in the earliest time frame. These deposits do not have contractual maturities and re-price in varying degrees to changes in interest rates. | ||||||
(2) Weighted-average rate excludes the impact of purchase accounting fair value adjustments. | ||||||
NET INTEREST INCOME
The following table presents a summary of
For the Three Months Ended | For the Three Months Ended | |||||
(Dollars in thousands) | Average | Interest | Rate | Average | Interest | Rate |
Liquidity management assets (1) (2) (7) | $ 3,083,508 | $ 14,508 | 1.87% | $ 2,802,964 | $ 9,625</td> | 1.36% |
Other earning assets (2) (3) (7) | 28,834 | 217 | 2.98 | 34,263 | 205 | 2.37 |
Loans, net of unearned income (2) (4) (7) | 10,200,733 | 127,718 | 4.97 | 9,603,561 | 134,016 | 5.54 |
Covered loans | 680,003 | 12,926 | 7.54 | 325,751 | 3,971 | 4.84 |
Total earning assets (7) | $ 13,993,078 | $ 155,369 | 4.41% | $ 12,766,539 | $ 147,817 | 4.59% |
Allowance for loan losses | (128,848) | (113,631) | ||||
Cash and due from banks | 140,010 | 154,078 | ||||
Other assets | 1,522,187 | 1,208,771 | ||||
Total assets | $ 15,526,427 | $ 14,015,757 | ||||
Interest-bearing deposits | $10,442,886 | $ 21,893 | 0.83% | $ 9,823,525 | $ 31,088 | 1.26% |
486,379 | 4,166 | 3.40 | 414,789 | 4,042 | 3.87 | |
Notes payable and other borrowings | 461,141 | 2,874 | 2.47 | 232,991 | 1,411 | 2.40 |
Secured borrowings - owed to securitization investors | 600,000 | 3,003 | 1.99 | 600,000 | 3,167 | 2.09 |
Subordinated notes | 40,000 | 168 | 1.65 | 55,000 | 265 | 1.89 |
Junior subordinated notes | 249,493 | 4,437 | 6.96 | 249,493 | 4,448 | 6.98 |
Total interest-bearing liabilities | $ 12,279,899 | $ 36,541 | 1.18% | $ 11,375,798 | $ 44,421 | 1.55% |
Non-interest bearing deposits | 1,553,769 | 1,005,170 | ||||
Other liabilities | 185,042 | 243,282 | ||||
Equity | 1,507,717 | 1,391,507 | ||||
Total liabilities and shareholders' equity | $ 15,526,427 | $ 14,015,757 | ||||
Interest rate spread (5) (7) | 3.23% | 3.04% | ||||
Net free funds/contribution (6) | $ 1,713,179 | 0.14% | $ 1,390,741 | 0.18% | ||
Net interest income/Net interest margin (7) | $ 118,828 | 3.37% | $ 103,396 | 3.22% | ||
(1) Liquidity management assets include available-for-sale securities, interest earning deposits with banks, federal funds sold and securities purchased under resale agreements. | ||||||
(2) Interest income on tax-advantaged loans, trading securities and securities reflects a tax-equivalent adjustment based on a marginal federal corporate tax rate of 35%. The total adjustments for the three months ended |
||||||
(3) Other earning assets include brokerage customer receivables and trading account securities. | ||||||
(4) Loans, net of unearned income, include loans held-for-sale and non-accrual loans. | ||||||
(5) Interest rate spread is the difference between the yield earned on earning assets and the rate paid on interest-bearing liabilities. | ||||||
(6) Net free funds are the difference between total average earning assets and total average interest-bearing liabilities. The estimated contribution to net interest margin from net free funds is calculated using the rate paid for total interest-bearing liabilities. | ||||||
(7) See "Supplemental Financial Measures/Ratios" for additional information on this performance ratio. | ||||||
The net interest margin increased 15 basis points in the third quarter of 2011 compared to the third quarter of 2010. This increase was primarily attributable to a 43 basis point decline in the cost of interest-bearing deposits over the last 12 months. Partially offsetting this improvement was a decrease on the yield on earning assets, primarily as a result of lower yields on loans due to lower amounts of accretable discount recognized as interest income on the purchased life insurance premium portfolio as prepayments declined and the negative impact of pricing pressures on the commercial premium finance portfolio.
The majority of covered loans are accounted for in accordance with ASC 310-30. As such, the yield on these loans at the acquisition date represents a fair value risk-free loan yield. In periods subsequent to the quarter of acquisition, the Company has experienced cash collections generally better than estimated for the initial valuation. Overall, expected losses and expected estimated lives have decreased, which has led to generally higher effective yields as estimated cash flows on the pools of loans has improved.
The following table presents a summary of
For the Three Months Ended | For the Three Months Ended | |||||
(Dollars in thousands) | Average | Interest | Rate | Average | Interest | Rate |
Liquidity management assets (1) (2) (7) | $ 3,083,508 | $ 14,508 | 1.87% | $ 2,591,398 | $ 13,198 | 2.04% |
Other earning assets (2) (3) (7) | 28,834 | 217 | 2.98 | 28,886 | 208 | 2.89 |
Loans, net of unearned income (2) (4) (7) | 10,200,733 | 127,718 | 4.97 | 9,859,789 | 124,047 | 5.05 |
Covered loans | 680,003 | 12,926 | 7.54 | 418,129 | 8,400 | 8.06 |
Total earning assets (7) | $ 13,993,078 | $ 155,369 | 4.41% | $ 12,898,202 | $ 145,853 | 4.54% |
Allowance for loan losses | (128,848) | (125,537) | ||||
Cash and due from banks | 140,010 | 135,670 | ||||
Other assets | 1,522,187 | 1,196,801 | ||||
Total assets | $ 15,526,427 | $ 14,105,136 | ||||
Interest-bearing deposits | $ 10,442,886 | $ 21,893 | 0.83% | $ 9,491,778 | $ 22,404 | 0.95% |
486,379 | 4,166 | 3.40 | 421,502 | 4,010 | 3.82 | |
Notes payable and other borrowings | 461,141 | 2,874 | 2.47 | 338,304 | 2,715 | 3.22 |
Secured borrowings - owed to securitization investors | 600,000 | 3,003 | 1.99 | 600,000 | 2,994 | 2.00 |
Subordinated notes | 40,000 | 168 | 1.65 | 45,440 | 194 | 1.69 |
Junior subordinated notes | 249,493 | 4,437 | 6.96 | 249,493 | 4,422 | 7.01 |
Total interest-bearing liabilities | $ 12,279,899 | $ 36,541 | 1.18% | $ 11,146,517 | $ 36,739 | 1.32% |
Non-interest bearing deposits | 1,553,769 | 1,349,549 | Other liabilities | 185,042 | 148,999 | |
Equity | 1,507,717 | 1,460,071 | ||||
Total liabilities and shareholders' equity | $ 15,526,427 | $ 14,105,136 | ||||
Interest rate spread (5) (7) | 3.23% | 3.22% | ||||
Net free funds/contribution (6) | $ 1,713,179 | 0.14% | $ 1,751,685 | 0.18% | ||
Net interest income/Net interest margin (7) | $ 118,828 | 3.37% | $ 109,114 | 3.40% | ||
(1) Liquidity management assets include available-for-sale securities, interest earning deposits with banks, federal funds sold and securities purchased under resale agreements. | ||||||
(2) Interest income on tax-advantaged loans, trading securities and securities reflects a tax-equivalent adjustment based on a marginal federal corporate tax rate of 35%. The total adjustments for the three months ended |
||||||
(3) Other earning assets include brokerage customer receivables and trading account securities. | ||||||
(4) Loans, net of unearned income, include loans held-for-sale and non-accrual loans. | ||||||
(5) Interest rate spread is the difference between the yield earned on earning assets and the rate paid on interest-bearing liabilities. | ||||||
(6) Net free funds are the difference between total average earning assets and total average interest-bearing liabilities. The estimated contribution to net interest margin from net free funds is calculated using the rate paid for total interest-bearing liabilities. | ||||||
(7) See "Supplemental Financial Measures/Ratios" for additional information on this performance ratio. | ||||||
The net interest margin for the third quarter of 2011 was 3.37% compared to 3.40% in the second quarter of 2011. The three basis point decrease in net interest margin in the third quarter of 2011 compared to the second quarter of 2011 resulted from the large increase in interest-bearing cash balances yielding 32 basis points in the third quarter and continued negative pricing pressures on the commercial premium finance portfolio. Excess liquidity balances continue to restrict net interest margin expansion as deposit growth exceeded strong loan growth. Partially offsetting these items was continued lower repricing of interest-bearing deposits, as the cost of this funding source declined by 12 basis points in the third quarter.
The majority of covered loans are accounted for in accordance with ASC 310-30. As such, the yield on these loans at the acquisition date represents a fair value risk-free loan yield. In periods subsequent to the quarter of acquisition, the Company has experienced cash collections generally better than estimated for the initial valuation. Overall, expected losses and expected estimated lives have decreased, which has led to generally higher effective yields as estimated cash flows on the pools of loans has improved. The yield on covered loans decreased in the third quarter of 2011 compared to the second quarter of 2011 as a result of the First Chicago acquisition.
The following table presents a summary of
For the Nine Months Ended | For the Nine Months Ended | |||||
(Dollars in thousands) | Average | Interest | Rate | Average | Interest | Rate |
Liquidity management assets (1) (2) (7) | $ 2,768,817 | $ 39,060 | 1.89% | $ 2,592,751 | $ 36,084 | 1.86% |
Other earning assets (2) (3) (7) | 28,483 | 606 | 2.84 | 50,192 | 883 | 2.35 |
Loans, net of unearned income (2) (4) (7) | 9,971,231 | 381,352 | 5.11 | 9,371,291 | 396,845 | 5.66 |
Covered loans | 476,199 | 28,398 | 7.97 | 178,492 | 6,653 | 4.98 |
Total earning assets (7) | $ 13,244,730 | $ 449,416 | 4.54% | $ 12,192,726 | $ 440,465 | 4.83% |
Allowance for loan losses | (124,369) | (109,982) | ||||
Cash and due from banks | 141,611 | 135,476 | ||||
Other assets | 1,287,724 | 1,104,240 | ||||
Total assets | $ 14,549,696 | $ 13,322,460 | ||||
Interest-bearing deposits | $ 9,826,982 | $ 68,253 | 0.93% | $ 9,358,313 | $ 95,926 | 1.37% |
441,558 | 12,134 | 3.67 | 420,554 | 12,482 | 3.97 | |
Notes payable and other borrowings | 355,989 | 8,219 | 1.29 | 225,579 | 4,312 | 2.56 |
Secured borrowings - owed to securitization investors | 600,000 | 9,037 | 2.01 | 600,000 | 9,276 | 2.07 |
Subordinated notes | 45,110 | 574 | 1.68 | 57,381 | 762 | 1.75 |
Junior subordinated notes | 249,493 | 13,229 | 6.99 | 249,493 | 13,227 | 6.99 |
Total interest-bearing liabilities | $ 11,519,132 | $ 111,446 | 1.29% | $ 10,911,320 | $ 135,985 | 1.66% |
Non-interest bearing deposits | 1,389,307 | 934,734 | ||||
Other liabilities | 172,449 | 155,795 | ||||
Equity | 1,468,808 | 1,320,611 | ||||
Total liabilities and shareholders' equity | $ 14,549,696 | $ 13,322,460 | ||||
Interest rate spread (5) (7) | 3.25% | 3.17% | ||||
Net free funds/contribution (6) | $ 1,725,598 | 0.16% | $ 1,281,406 | 0.17% | ||
Net interest income/Net interest margin (7) | $ 337,970 | 3.41% | $ 304,480 | 3.34% | ||
(1) Liquidity management assets include available-for-sale securities, interest earning deposits with banks, federal funds sold and securities purchased under resale agreements. | ||||||
(2) Interest income on tax-advantaged loans, trading securities and securities reflects a tax-equivalent adjustment based on a marginal federal corporate tax rate of 35%. The total adjustments for the nine months ended |
||||||
(3) Other earning assets include brokerage customer receivables and trading account securities. | ||||||
(4) Loans, net of unearned income, include loans held-for-sale and non-accrual loans. | ||||||
(5) Interest rate spread is the difference between the yield earned on earning assets and the rate paid on interest-bearing liabilities. | ||||||
(6) Net free funds are the difference between total average earning assets and total average interest-bearing liabilities. The estimated contribution to net interest margin from net free funds is calculated using the rate paid for total interest-bearing liabilities. | ||||||
(7) See "Supplemental Financial Measures/Ratios" for additional information on this performance ratio. | ||||||
The net interest margin for the first nine months of 2011 was 3.41%, compared to 3.34% in the first nine months of 2010. Average earning assets for the first nine months of 2011 increased by
NON-INTEREST INCOME
For the third quarter of 2011, non-interest income totaled
The following table presents non-interest income by category for the periods presented:
Three Months Ended | ||||
$ | % | |||
(Dollars in thousands) | 2011 | 2010 | Change | Change |
Brokerage | $ 6,108 | $ 5,806 | $ 302 | 5 |
Trust and asset management | 5,886 | 3,167 | 2,719 | 86 |
Total wealth management | 11,994 | 8,973 | 3,021 | 34 |
Mortgage banking | 14,469 | 20,980 | (6,511) | (31) |
Service charges on deposit accounts | 4,085 | 3,384 | 701 | 21 |
Gains on available-for-sale securities | 225 | 9,235 | (9,010) | (98) |
Gain on bargain purchases | 27,390 | 6,593 | 20,797 | NM |
Trading gains | 591 | 210 | 381 | NM |
Other: | ||||
Fees from covered call options | 3,436 | 703 | 2,733 | NM |
Bank Owned Life Insurance | 351 | 552 | (201) | (36) |
Administrative services | 784 | 744 | 40 | 5 |
Miscellaneous | 3,922 | 3,282 | 640 | 20 |
Total Other | 8,493 | 5,281 | 3,212 | 61 |
Total Non-Interest Income | $ 67,247 | $ 54,656 | $ 12,591 | 23 |
Nine Months Ended | ||||
$ | % | |||
(Dollars in thousands) | 2011 | 2010 | Change | Change |
Brokerage | $ 18,641 | $ 17,072 | $ 1,569 | 9 |
Trust and asset management | 14,190 | 9,761 | 4,429 | 45 |
Total wealth management | 32,831 | 26,833 | 5,998 | 22 |
Mortgage banking | 38,917 | 38,693 | 224 | 1 |
Service charges on deposit accounts | 10,990 | 10,087 | 903 | 9 |
Gains on available-for-sale securities | 1,483 | 9,673 | (8,190) | (85) |
Gain on bargain purchases | 37,974 | 43,981 | (6,007) | (14) |
Trading gains | 121 | 4,554 | (4,433) | (97) |
Other: | ||||
Fees from covered call options | 8,193 | 1,162 | 7,031 | NM |
Bank Owned Life Insurance | 1,888 | 1,593 | 295 | 19 |
Administrative services | 2,282 | 2,034 | 248 | 12 |
Miscellaneous | 10,107 | 9,090 | 1,017 | 11 |
Total Other | 22,470 | 13,879 | 8,591 | 62 |
Total Non-Interest Income | $ 144,786 | $ 147,700 | $ (2,914) | (2) |
NM - Not Meaningful |
The significant changes in non-interest income for the quarter ended
Wealth management revenue is comprised of the trust and asset management revenue of
Mortgage banking revenue includes revenue from activities related to originating, selling and servicing residential real estate loans for the secondary market. For the quarter ended
A summary of the mortgage banking revenue components is shown below:
Mortgage banking revenue | |||||
Three Months Ended | Nine Months Ended | ||||
(Dollars in thousands) | 2011 | 2011 | 2010 | 2011 | 2010 |
Mortgage loans originated and sold | $ 641,742 | $ 458,538 | $ 1,076,736 | $ 1,662,368 | $ 2,495,880 |
Mortgage loans serviced for others | $ 952,257 | $ 943,542 | $787,923 | ||
Fair value of mortgage servicing rights (MSRs) | $ 6,740 | $ 8,762 | $ 5,179 | ||
MSRs as a percentage of loans serviced | 0.71% | 0.93% | 0.66% | ||
Gain on sales of loans and other fees | $ 17,366 | $ 13,037 | $ 23,884 | $ 41,996 | $ 52,087 |
Mortgage servicing rights fair value adjustments | (2,631) | (1,136) | (1,472) | (3,626) | (3,789) |
Recourse obligation adjustments on loans previously sold | (266) | 916 | (1,432) | 547 | (9,605) |
Total mortgage banking revenue | $ 14,469 | $ 12,817 | $ 20,980 | $ 38,917 | $ 38,693 |
Gain on sales of loans and other fees as a percentage of loans sold | 2.71% | 2.84% | 2.22% | 2.53% | 2.09% |
The Company recognized gains on bargain purchases of
The Company recognized
Other non-interest income for the third quarter of 2011 totaled
NON-INTEREST EXPENSE
Non-interest expense for the third quarter of 2011 totaled
The following table presents non-interest expense by category for the periods presented:
Three Months Ended | ||||
$ | % | |||
(Dollars in thousands) | 2011 | 2010 | Change | Change |
Salaries and employee benefits: | ||||
Salaries | $ 36,633 | $ 30,537 | 6,096 | 20 |
Commissions and bonus | 14,984 | 17,366 | (2,382) | (14) |
Benefits | 10,246 | 9,111 | 1,135 | 12 |
Total salaries and employee benefits | 61,863 | 57,014 | 4,849 | 9 |
Equipment | 4,501 | 4,203 | 298 | 7 |
Occupancy, net | 7,512 | 6,254 | 1,258 | 20 |
Data processing | 3,836 | 3,891 | (55) | (1) |
Advertising and marketing | 2,119 | 1,650 | 469 | 28 |
Professional fees | 5,085 | 4,555 | 530 | 12 |
Amortization of other intangible assets | 970 | 701 | 269 | 38 |
3,100 | 4,642 | (1,542) | (33) | |
OREO expenses, net | 5,134 | 4,767 | 367 | 8 |
Other: | ||||
Commissions - 3rd party brokers | 936 | 979 | (43) | (4) |
Postage | 1,102 | 1,254 | (152) | (12) |
Stationery and supplies | 904 | 812 | 92 | 11 |
Miscellaneous | 9,259 | 9,001 | 258 | 3 |
Total other | 12,201 | 12,046 | 155 | 1 |
Total Non-Interest Expense | $ 106,321 | $ 99,723 | $ 6,598 | 7 |
Nine Months Ended | ||||
$ | % | |||
(Dollars in thousands) | 2011 | 2010 | Change | Change |
Salaries and employee benefits: | ||||
Salaries | $ 101,776 | $ 88,334 | 13,442 | 15 |
Commissions and bonus | 36,458 | 40,064 | (3,606) | (9) |
Benefits | 32,807 | 28,337 | 4,470 | 16 |
Total salaries and employee benefits | 171,041 | 156,735 | 14,306 | 9 |
Equipment | 13,174 | 12,144 | 1,030 | 8 |
Occupancy, net | 20,789 | 18,517 | 2,272 | 12 |
Data processing | 10,506 | 10,967 | (461) | (4) |
Advertising and marketing | 5,173 | 4,434 | 739 | 17 |
Professional fees | 13,164 | 11,619 | 1,545 | 13 |
Amortization of other intangible assets | 2,363 | 2,020 | 343 | 17 |
10,899 | 13,456 | (2,557) | (19) | |
OREO expenses, net | 17,519 | 11,948 | 5,571 | 47 |
Other: | ||||
Commissions - 3rd party brokers | 2,957 | 3,037 | (80) | (3) |
Postage | 3,350 | 3,593 | (243) | (7) |
Stationery and supplies | 2,632 | 2,305 | 327 | 14 | Miscellaneous | 28,069 | 25,549 | 2,520 | 10 |
Total other | 37,008 | 34,484 | 2,524 | 7 |
Total Non-Interest Expense | $ 301,636 | $ 276,324 | $ 25,312 | 9 |
The significant changes in non-interest expense for the quarter ended
Salaries and employee benefits comprised 58% of total non-interest expense in the third quarter of 2011 and 57% in the third quarter of 2010. Salaries and employee benefits expense increased
Occupancy expense includes depreciation on premises, real estate taxes, utilities and maintenance of premises, as well as net rent expense for leased premises. Occupancy expense for the third quarter of 2011 was
Professional fees include legal, audit and tax fees, external loan review costs and normal regulatory exam assessments. Professional fees for the third quarter of 2011 were
OREO expenses include all costs related to obtaining, maintaining and selling of other real estate owned properties. This expense totaled
ASSET QUALITY
Allowance for Credit Losses, excluding covered loans
Three Months Ended | Nine Months Ended | |||
(Dollars in thousands) | 2011 | 2010 | 2011 | 2010 |
Allowance for loan losses at beginning of period | $ 117,362 | $ 106,547 | $ 113,903 | $ 98,277 |
Provision for credit losses | 28,263 | 25,528 | 81,305 | 95,870 |
Other adjustments | -- | -- | -- | 1,943 |
Reclassification (to)/from allowance for unfunded lending-related commitments | (66) | (206) | 1,733 | 478 |
Charge-offs: | ||||
Commercial | 8,851 | 3,076 | 25,574 | 12,532 |
Commercial real estate | 14,734 | 15,727 | 48,767 | 48,281 |
Home equity | 1,071 | 1,234 | 3,144 | 4,604 |
Residential real estate | 926 | 116 | 2,483 | 832 |
Premium finance receivables - commercial | 1,738 | 1,505 | 5,138 | 21,186 |
Premium finance receivables - life insurance | 31 | 79 | 275 | 79 |
Indirect consumer | 24 | 198 | 188 | 728 |
Consumer and other | 282 | 288 | 708 | 576 |
Total charge-offs | 27,657 | 22,223 | 86,277 | 88,818 |
Recoveries: | ||||
Commercial | 150 | 286 | 717 | 873 |
Commercial real estate | 299 | 197 | 1,100 | 856 |
Home equity | 32 | 8 | 59 | 22 |
Residential real estate | 3 | 3 | 8 | 10 |
Premium finance receivables - commercial | 159 | 220 | 5,802 | 637 |
Premium finance receivables - life insurance | -- | -- | 12 | -- |
Indirect consumer | 75 | 29 | 183 | 160 |
Consumer and other | 29 | 43 | 104 | 124 |
Total recoveries | 747 | 786 | 7,985 | 2,682 |
Net charge-offs | (26,910) | (21,437) | (78,292) | (86,136) |
Allowance for loan losses at period end | $ 118,649 | $ 110,432 | $ 118,649 | $ 110,432 |
Allowance for unfunded lending-related commitments at period end | 13,402 | 2,375 | 13,402 | 2,375 |
Allowance for credit losses at period end | $ 132,051 | $ 112,807 | $ 132,051 | $ 112,807 |
Annualized net charge-offs by category as a percentage of its own respective category's average: | ||||
Commercial | 1.60% | 0.60% | 1.63% | |
Commercial real estate | 1.69 | 1.84 | 1.89 | 1.90 |
Home equity | 0.47 | 0.53 | 0.46 | 0.66 |
Residential real estate | 0.80 | 0.07 | 0.68 | 0.20 |
Premium finance receivables - commercial | 0.42 | 0.39 | (0.06) | 2.12 |
Premium finance receivables - life insurance | 0.01 | 0.02 | 0.02 | 0.01 |
Indirect consumer | (0.33) | 1.08 | 0.01 | 0.99 |
Consumer and other | 0.84 | 1.01 | 0.75 | 0.57 |
Total loans, net of unearned income, excluding covered loans | 1.05% | 0.89% | 1.05% | 1.23% |
Net charge-offs as a percentage of the provision for credit losses | 95.21% | 83.97% | 96.29% | 89.85% |
Loans at period-end | $ 10,272,711 | $ 9,461,155 | ||
Allowance for loan losses as a percentage of loans at period end | 1.15% | 1.17% | ||
Allowance for credit losses as a percentage of loans at period end | 1.29% | 1.19% | ||
The allowance for credit losses, excluding the allowance for covered loan losses, is comprised of the allowance for loan losses and the allowance for unfunded lending-related commitments. The allowance for loan losses is a reserve against loan amounts that are actually funded and outstanding while the allowance for unfunded lending-related commitments relates to certain amounts that
The provision for credit losses, excluding the provision for covered loan losses, totaled
Management believes the allowance for credit losses is appropriate to provide for inherent losses in the portfolio. There can be no assurances however, that future losses will not exceed the amounts provided for, thereby affecting future results of operations. The amount of future additions to the allowance for credit losses will be dependent upon management's assessment of the appropriateness of the allowance based on its evaluation of economic conditions, changes in real estate values, interest rates, the regulatory environment, the level of past-due and non-performing loans, and other factors. The increase in the allowance for credit losses from the end of the prior quarter reflects the continued changes in real estate values on certain types of credits, specifically credits with residential development collateral valuation exposure.
The Company also provides a provision for covered loan losses on covered loans and an allowance for covered loan losses on covered loans. Please see "Covered Assets" later in this document for more detail.
The table below shows the aging of the Company's loan portfolio, excluding covered loans, at
As of |
90+ days | 60-89 | 30-59 | |||
and still | days past | days past | ||||
(Dollars in thousands) | Nonaccrual | accruing(1) | due(1) | due(1) | Current | Total Loans |
Loan Balances: | ||||||
Commercial | ||||||
Commercial and industrial | $ 21,055 | $ -- | $ 13,691 | $ 9,748 | $ 1,370,221 | $ 1,414,715 |
Franchise | 1,792 | -- | -- | -- | 125,062 | 126,854 |
Mortgage warehouse lines of credit | -- | -- | -- | -- | 132,425 | 132,425 |
Community Advantage - homeowners association | -- | -- | -- | -- | 74,281 | 74,281 |
Aircraft | -- | -- | -- | 53 | 18,027 | 18,080 |
Asset-based lending | 1,989 | -- | 210 | -- | 417,538 | 419,737 |
Municipal | -- | -- | -- | -- | 74,723 | 74,723 |
Leases | -- | -- | -- | -- | 66,671 | 66,671 |
Other | -- | -- | -- | -- | 9,612 | 9,612 |
Total commercial | 24,836 | -- | 13,901 | 9,801 | 2,288,560 | 2,337,098 |
Commercial real-estate: | ||||||
Residential construction | 1,358 | 1,105 | 1,532 | 4,896 | 63,050 | 71,941 |
Commercial construction | 2,860 | -- | -- | 823 | 156,738 | 160,421 |
Land | 31,072 | -- | 2,661 | 8,935 | 156,462 | 199,130 |
Office | 15,432 | -- | 2,079 | 63 | 516,356 | 533,930 |
Industrial | 2,160 | -- | 294 | 2,427 | 533,367 | 538,248 |
Retail | 3,664 | -- | 4,318 | 19,085 | 492,168 | 519,235 |
Multi-family | 3,423 | -- | 4,230 | 5,666 | 311,458 | 324,777 |
Mixed use and other | 9,700 | -- | 8,955 | 22,759 | 1,076,225 | 1,117,639 |
Total commercial real-estate | 69,669 | 1,105 | 24,069 | 64,654 | 3,305,824 | 3,465,321 |
Home equity | 15,426 | -- | 2,002 | 5,072 | 856,680 | 879,180 |
Residential real estate | 7,546 | -- | 1,852 | 908 | 315,901 | 326,207 |
Premium finance receivables - commercial | 6,942 | 4,599 | 3,206 | 7,726 | 1,395,099 | 1,417,572 |
Premium finance receivables - life insurance | 349 | 2,413 | 5,877 | 7,076 | 1,655,728 | 1,671,443 |
Indirect consumer | 146 | 292 | 81 | 370 | 61,563 | 62,452 |
Consumer and other | 653 | -- | 26 | 386 | 112,373 | 113,438 |
Total loans, net of unearned income, excluding covered loans | $ 125,567 | $ 8,409 | $ 51,014 | $ 95,993 | $ 9,991,728 | $ 10,272,711 |
Aging as a % of Loan Balance: | ||||||
Commercial | ||||||
Commercial and industrial | 1.5% | -- % | 1.0% | 0.7% | 96.8% | 100.0% |
Franchise | 1.4 | -- | -- | -- | 98.6 | 100.0 |
Mortgage warehouse lines of credit | -- | -- | -- | -- | 100.0 | 100.0 |
Community Advantage - homeowners association | -- | -- | -- | -- | 100.0 | 100.0 |
Aircraft | -- | -- | -- | 0.3 | 99.7 | 100.0 |
Asset-based lending | 0.5 | -- | 0.1 | -- | 99.4 | 100.0 |
Municipal | -- | -- | -- | -- | 100.0 | 100.0 |
Leases | -- | -- | -- | -- | 100.0 | 100.0 |
Other | -- | -- | -- | -- | 100.0 | 100.0 |
Total commercial | 1.1 | -- | 0.6 | 0.4 | 97.9 | 100.0 |
Commercial real-estate: | ||||||
Residential construction | 1.9 | 1.5 | 2.1 | 6.8 | 87.7 | 100.0 |
Commercial construction | 1.8 | -- | -- | 0.5 | 97.7 | 100.0 |
Land | 15.6 | -- | 1.3 | 4.5 | 78.6 | 100.0 |
Office | 2.9 | -- | 0.4 | -- | 96.7 | 100.0 |
Industrial | -- | 0.1 | 0.5 | 99.0 | 100.0 | |
Retail | 0.7 | -- | 0.8 | 3.7 | 94.8 | 100.0 |
Multi-family | 1.1 | -- | 1.3 | 1.7 | 95.9 | 100.0 |
Mixed use and other | 0.9 | -- | 0.8 | 2.0 | 96.3 | 100.0 |
Total commercial real-estate | 2.0 | -- | 0.7 | 1.9 | 95.4 | 100.0 |
Home equity | 1.8 | -- | 0.2 | 0.6 | 97.4 | 100.0 |
Residential real estate | 2.3 | -- | 0.6 | 0.3 | 96.8 | 100.0 |
Premium finance receivables - commercial | 0.5 | 0.3 | 0.2 | 0.5 | 98.5 | 100.0 |
Premium finance receivables - life insurance | -- | 0.1 | 0.4 | 0.4 | 99.1 | 100.0 |
Indirect consumer | 0.2 | 0.5 | 0.1 | 0.6 | 98.6 | 100.0 |
Consumer and other | 0.6 | -- | -- | 0.3 | 99.1 | 100.0 |
Total loans, net of unearned income, excluding covered loans | 1.2% | 0.1% | 0.5% | 0.9% | 97.3% | 100.0% |
(1) Excludes purchased non-covered loans acquired with evidence of credit quality deterioration since origination, in accordance with ASC 310-30. | ||||||
As of
The Company's home equity and residential loan portfolios continue to exhibit low delinquency ratios. Home equity loans at
The table below shows the aging of the Company's loan portfolio, excluding covered loans, at
As of |
90+ days | 60-89 | 30-59 | |||
and still | days past | days past | ||||
(Dollars in thousands) | Nonaccrual | accruing | due | due | Current | Total Loans |
Loan Balances: | ||||||
Commercial | ||||||
Commercial and industrial | $ 22,289 | $ -- | $ 7,164 | $ 23,754 | $ 1,309,455 | $ 1,362,662 |
Franchise | 1,792 | -- | -- | -- | 112,342 | 114,134 |
Mortgage warehouse lines of credit | -- | -- | -- | -- | 68,477 | 68,477 |
Community Advantage - homeowners association | -- | -- | -- | -- | 73,929 | 73,929 |
Aircraft | -- | -- | -- | -- | 21,231 | 21,231 |
Asset-based lending | 2,087 | -- | -- | 2,415 | 361,594 | 366,096 |
Municipal | -- | -- | -- | -- | 63,296 | 63,296 |
Leases | -- | -- | -- | 763 | 61,772 | 62,535 |
Other | -- | -- | -- | -- | 76 | 76 |
Total commercial | 26,168 | -- | 7,164 | 26,932 | 2,072,172 | 2,132,436 |
Commercial real-estate: | ||||||
Residential construction | 3,011 | -- | 938 | 5,245 | 81,561 | 90,755 |
Commercial construction | 2,453 | -- | 7,579 | 7,075 | 120,540 | 137,647 |
Land | 33,980 | -- | 10,281 | 8,076 | 160,597 | 212,934 |
Office | 17,503 | -- | 1,648 | 3,846 | 509,385 | 532,382 |
Industrial | 2,470 | -- | 2,689 | 2,480 | 506,895 | 514,534 |
Retail | 8,164 | -- | 3,778 | 14,806 | 498,040 | 524,788 |
Multi-family | 4,947 | -- | 4,628 | 3,836 | 302,740 | 316,151 |
Mixed use and other | 17,265 | -- | 9,350 | 4,201 | 1,014,661 | 1,045,477 |
Total commercial real-estate | 89,793 | -- | 40,891 | 49,565 | 3,194,419 | 3,374,668 |
Home equity | 15,853 | -- | 1,502 | 4,081 | 859,266 | 880,702 |
Residential real estate | 7,379 | -- | 1,272 | 949 | 319,781 | 329,381 |
Premium finance receivables - commercial | 10,309 | 4,446 | 5,089 | 7,897 | 1,401,695 | 1,429,436 |
Premium finance receivables - life insurance | 670 | 324 | 4,873 | 3,254 | 1,610,547 | 1,619,668 |
Indirect consumer | 89 | 284 | 98 | 531 | 56,716 | 57,718 |
Consumer and other | 757 | -- | 123 | 418 | 99,770 | 101,068 |
Total loans, net of unearned income, excluding covered loans | $ 151,018 | $ 5,054 | $ 61,012 | $ 93,627 | $ 9,614,366 | $ 9,925,077 |
Aging as a % of Loan Balance: | ||||||
Commercial | ||||||
Commercial and industrial | 1.6% | -- % | 0.5% | 1.7% | 96.2% | 100.0% |
Franchise | 1.6 | -- | -- | -- | 98.4 | 100.0 |
Mortgage warehouse lines of credit | -- | -- | -- | -- | 100.0 | 100.0 |
Community Advantage - homeowners association | -- | -- | -- | -- | 100.0 | 100.0 |
Aircraft | -- | -- | -- | -- | 100.0 | 100.0 |
Asset-based lending | 0.6 | -- | -- | 0.7 | 98.7 | 100.0 |
Municipal | -- | -- | -- | -- | 100.0 | 100.0 |
Leases | -- | -- | -- | 1.2 | 98.8 | 100.0 |
Other | -- | -- | -- | -- | 100.0 | 100.0 |
Total commercial | 1.2 | -- | 0.3 | 1.3 | 97.2 | 100.0 |
Commercial real-estate: | ||||||
Residential construction | 3.3 | -- | 1.0 | 5.8 | 89.9 | 100.0 |
Commercial construction | 1.8 | -- | 5.5 | 5.1 | 87.6 | 100.0 |
Land | 16.0 | -- | 4.8 | 3.8 | 75.4 | 100.0 |
Office | 3.3 | -- | 0.3 | 0.7 | 95.7 | 100.0 |
Industrial | 0.5 | -- | 0.5 | 0.5 | 98.5 | 100.0 |
Retail | 1.6 | -- | 0.7 | 2.8 | 94.9 | 100.0 |
Multi-family | 1.6 | -- | 1.5 | 1.2 | 95.7 | 100.0 |
Mixed use and other | 1.7 | -- | 0.9 | 0.4 | 97.0 | 100.0 |
Total commercial real-estate | 2.7 | -- | 1.2 | 1.5 | 94.6 | 100.0 |
Home equity | 1.8 | 0.2 | 0.5 | 97.5 | 100.0 | |
Residential real estate | 2.2 | -- | 0.4 | 0.3 | 97.1 | 100.0 |
Premium finance receivables - commercial | 0.7 | 0.3 | 0.4 | 0.6 | 98.0 | 100.0 |
Premium finance receivables - life insurance | -- | -- | 0.3 | 0.2 | 99.5 | 100.0 |
Indirect consumer | 0.2 | 0.5 | 0.2 | 0.9 | 98.2 | 100.0 |
Consumer and other | 0.7 | -- | 0.1 | 0.4 | 98.8 | 100.0 |
Total loans, net of unearned income, excluding covered loans | 1.5% | 0.1% | 0.6% | 0.9% | 96.9% | 100.0% |
Non-performing Assets, excluding covered assets
The following table sets forth
(Dollars in thousands) | 2011 | 2011 | 2010 |
Loans past due greater than 90 days and still accruing: | |||
Commercial | $ -- | $ -- | $ -- |
Commercial real-estate | 1,105 | -- | -- |
Home equity | -- | -- | -- |
Residential real-estate | -- | -- | -- |
Premium finance receivables - commercial | 4,599 | 4,446 | 6,853 |
Premium finance receivables - life insurance | 2,413 | 324 | 1,222 |
Indirect consumer | 292 | 284 | 355 |
Consumer and other | -- | -- | 2 |
Total loans past due greater than 90 days and still accruing | 8,409 | 5,054 | 8,432 |
Non-accrual loans: | |||
Commercial | 24,836 | 26,168 | 19,444 |
Commercial real-estate | 69,669 | 89,793 | 83,340 |
Home equity | 15,426 | 15,853 | 6,144 |
Residential real-estate | 7,546 | 7,379 | 6,644 |
Premium finance receivables - commercial | 6,942 | 10,309 | 9,082 |
Premium finance receivables - life insurance | 349 | 670 | 222 |
Indirect consumer | 146 | 89 | 446 |
Consumer and other | 653 | 757 | 569 |
Total non-accrual loans | 125,567 | 151,018 | 125,891 |
Total non-performing loans: | |||
Commercial | 24,836 | 26,168 | 19,444 |
Commercial real-estate | 70,774 | 89,793 | 83,340 |
Home equity | 15,426 | 15,853 | 6,144 |
Residential real-estate | 7,546 | 7,379 | 6,644 |
Premium finance receivables - commercial | 11,541 | 14,755 | 15,935 |
Premium finance receivables - life insurance | 2,762 | 994 | 1,444 |
Indirect consumer | 438 | 373 | 801 |
Consumer and other | 653 | 757 | 571 |
Total non-performing loans | $ 133,976 | $ 156,072 | $ 134,323 |
Other real estate owned | 86,622 | 82,772 | 76,654 |
Other real estate owned - obtained in acquisition | 10,302 | -- | -- |
Total non-performing assets | $ 230,900 | $ 238,844 | $ 210,977 |
Total non-performing loans by category as a percent of its own respective category's period-end balance: | |||
Commercial | 1.06% | 1.23% | 1.00% |
Commercial real-estate | 2.04 | 2.66 | 2.50 |
Home equity | 1.75 | 1.80 | 0.67 |
Residential real-estate | 2.31 | 2.24 | 1.94 |
Premium finance receivables - commercial | 0.81 | 1.03 | 1.20 |
Premium finance receivables - life insurance | 0.17 | 0.06 | 0.10 |
Indirect consumer | 0.70 | 0.65 | 1.42 |
Consumer and other | 0.58 | 0.75 | 0.57 |
Total loans, net of unearned income | 1.30% | 1.57% | 1.42% |
Total non-performing assets as a percentage of total assets | 1.45% | 1.63% | 1.50% |
Allowance for loan losses as a percentage of total non-performing loans | 88.56% | 75.20% | 82.21% |
Non-performing Commercial and
The commercial non-performing loan category totaled
Management is pursuing the resolution of all credits in this category. At this time,management believes reserves are appropriate to absorb inherent losses that are expected to occur upon the ultimate resolution of these credits.
Non-performing home equity and residential real estate loans totaled
Non-performing Commercial Premium Finance Receivables
The table below presents the level of non-performing property and casualty premium finance receivables as of
(Dollars in thousands) | 2011 | 2010 |
Non-performing premium finance receivables - commercial | $ 11,541 | $ 15,935 |
- as a percent of premium finance receivables - commercial outstanding | 0.81% | 1.20% |
Net (recoveries) charge-offs of premium finance receivables - commercial | $ 1,579 | $ 1,285 |
- annualized as a percent of average premium finance receivables - commercial | 0.42% | 0.39% |
Fluctuations in this category may occur due to timing and nature of account collections from insurance carriers. The Company's underwriting standards, regardless of the condition of the economy, have remained consistent. We anticipate that net charge-offs and non-performing asset levels in the near term will continue to be at levels that are within acceptable operating ranges for this category of loans. Management is comfortable with administering the collections at this level of non-performing property and casualty premium finance receivables and believes reserves are adequate to absorb inherent losses that may occur upon the ultimate resolution of these credits.
The ratio of non-performing commercial premium finance receivables fluctuates throughout the year due to the nature and timing of canceled account collections from insurance carriers. Due to the nature of collateral for commercial premium finance receivables, it customarily takes 60-150 days to convert the collateral into cash. Accordingly, the level of non-performing commercial premium finance receivables is not necessarily indicative of the loss inherent in the portfolio. In the event of default,
Nonperforming Loans Rollforward
The table below presents a summary of the changes in the balance of non-performing loans, excluding covered loans, for the three and nine month periods ending
Three Months Ended | Nine Months Ended | |||
(Dollars in thousands) | 2011 | 2010 | 2011 | 2010 |
Balance at beginning of period | $ 156,072 | $ 135,401 | $ 142,132 | $ 131,804 |
Additions, net | 39,500 | 40,539 | 141,410 | 127,349 |
Return to performing status | (2,147) | (19) | (5,515) | (3,844) |
Payments received | (20,236) | (17,160) | (34,378) | (26,673) |
Transfer to OREO | (17,670) | (10,011) | (53,021) | (50,734) |
Charge-offs | (18,283) | (12,212) | (49,994) | (40,892) |
Net change for niche loans (1) | (3,260) | (2,215) | (6,658) | (2,687) |
Balance at end of period | $ 133,976 | $ 134,323 | $ 133,976 | $ 134,323 |
(1) This includes activity for premium finance receivables and indirect consumer loans. | ||||
Restructured Loans
The table below presents a summary of restructured loans for the respective period, presented by loan category and accrual status:
(Dollars in thousands) | 2011 | 2011 | 2010 |
Accruing: | |||
Commercial | $ 7,726 | $ 12,396 | $ 7,690 |
74,307 | 72,363 | 65,149 | |
Residential real estate and other | 3,326 | 1,079 | 1,121 |
Total accrual | $ 85,359 | $ 85,838 | $ 73,960 |
Non-accrual: (1) | |||
Commercial | $ 3,793 | $ 3,587 | $ 3,959 |
Commercial real estate | 13,322 | 12,308 | 13,812 |
Residential real estate and other | 1,918 | 1,311 | 1,935 |
Total non-accrual | $ 19,033 | $ 17,206 | $ 19,706 |
Total restructured loans: | |||
Commercial | $ 11,519 | $ 15,983 | $ 11,649 |
Commercial real estate | 87,629 | 84,671 | 78,961 |
Residential real estate and other | 5,244 | 2,390 | 3,056 |
Total restructured loans | $ 104,392 | $ 103,044 | $ 93,666 |
(1) Included in total non-performing loans. | |||
At
The Company's approach to restructuring loans is built on its credit risk rating system, which requires credit management personnel to assign a credit risk rating to each loan. In each case, the loan officer is responsible for recommending a credit risk rating for each loan and ensuring the credit risk ratings are appropriate. These credit risk ratings are then reviewed and approved by the bank's chief credit officer or the director's loan committee. Credit risk ratings are determined by evaluating a number of factors including a borrower's financial strength, cash flow coverage, collateral protection and guarantees. The Company's credit risk rating scale is one through ten with higher scores indicating higher risk. In the case of loans rated six or worse following modification, the Company's Managed Assets Division evaluates the loan and the credit risk rating and determines that the loan has been restructured to be reasonably assured of repayment and of performance according to the modified terms and is supported by a current, well-documented credit assessment of the borrower's financial condition and prospects for repayment under the revised terms.
A modification of a loan with an existing credit risk rating of six or worse or a modification of any other credit which will result in a restructured credit risk rating of six or worse must be reviewed for troubled debt restructuring ("TDR") classification. In that event, our Managed Assets Division conducts an overall credit and collateral review. A modification of a loan is considered to be a TDR if both (1) the borrower is experiencing financial difficulty and (2) for economic or legal reasons, the bank grants a concession to a borrower that it would not otherwise consider. The modification of a loan where the credit risk rating is five or better both before and after such modification are not reviewed for TDR status. Based on the Company's credit risk rating system, it considers that borrowers whose credit risk rating is five or better are not experiencing financial difficulties and therefore, are not considered TDRs.
TDRs are reviewed at the time of modification and on a quarterly basis to determine if a specific reserve is needed. The carrying amount of the loan is compared to the expected payments to be received, discounted at the loan's original rate, or for collateral dependent loans, to the fair value of the collateral. Any shortfall is recorded as a specific reserve.
All credits determined to be a TDR will continue to be classified as a TDR in all subsequent periods, unless the borrower has been in compliance with the loan's modified terms for a period of six months (including over a calendar year-end) and the modified interest rate represented a market rate at the time of a restructuring. Additionally, before removing a loan from TDR classification, a review of the current or previously measured impairment on the loan and any concerns related to future performance by the borrower is conducted. If concerns exist about the future ability of the borrower to meet its obligations under the loans based on a credit review by the Managed Assets Division, the TDR classification is not removed from the loan.
Each restructured loan was reviewed for collateral impairment at
Other Real Estate Owned
The table below presents a summary of other real estate owned, excluding covered other real estate owned, as of
Three Months Ended | |||
(Dollars in thousands) | 2011 | 2011 | 2010 |
Balance at beginning of period | $ 82,772 | $ 85,290 | $ 86,420 |
Disposals/resolved | (7,581) | (8,253) | (15,463) |
Transfers in at fair value, less costs to sell | 14,530 | 10,190 | 8,303 |
Additions from acquisition | 10,302 | -- | -- |
Fair value adjustments | (3,099) | (4,455) | (2,606) |
Balance at end of period | $ 96,924 | $ 82,772 | $ 76,654 |
Period End | |||
Balance by Property Type | 2011 | 2011 | 2010 |
Residential real estate | $ 6,938 | $ 7,196 | $ 8,778 |
Residential real estate development | 18,535 | 16,591 | 22,600 |
Commercial real estate | 71,451 | 58,985 | 45,276 |
Total | $ 96,924 | $ 82,772 | $ 76,654 |
The following table provides a comparative analysis for the period end balances of the covered asset components and any changes in the allowance for covered loan losses.
Covered Assets | |||
(Dollars in thousands) | 2011 | 2011 | 2010 |
Period End Balances: | |||
Loans | $ 680,075 | $ 408,669 | $ 353,840 |
Other real estate owned and other assets | 65,583 | 31,053 | 18,741 |
FDIC Indemnification asset | 379,306 | 110,049 | 161,640 |
Total covered assets | $ 1,124,964 | $ 549,771 | $ 534,221 |
Allowance for Covered Loan Losses Rollforward: | |||
Balance at beginning of period | $ 7,443 | $ 4,844 | $ -- |
Provision for covered loan losses before benefit attributable to |
5,139 | 2,599 | -- |
Benefit attributable to |
(4,112) | (2,078) | -- |
Net provision for covered loan losses | 1,027 | 521 | -- |
Increase in |
4,112 | 2,076 | -- |
Loans charged-off | (88) | -- | -- |
Recoveries of loans charged-off | -- | 2 | -- |
Net charge-offs | (88) | 2 | -- |
Balance at end of period | $ 12,494 | $ 7,443 | $ -- |
In conjunction with
The following table provides activity for the accretable yield of loans accounted for under ASC 310-30.
Accretable Yield Activity | ||
Life Insurance | ||
Bank | Premium | |
(Dollars in thousands) | Acquisitions | Finance Loans |
Accretable yield at |
$ 38,866 | $ 44,916 |
Acquisitions | 96 | -- |
Accretable yield amortized to interest income | (4,042) | (14,644) |
Reclassification to/from non-accretable difference | -- | (137) |
Increases in interest cash flows due to payments and changes in interest rates | 4,889 | 3,180 |
Accretable yield at |
$ 39,809 | $ 33,315 |
Acquisitions | 7,107 | -- |
Accretable yield amortized to interest income | (14,159) | (9,052) |
Reclassification to/from non-accretable difference | -- | 184 |
Increases in interest cash flows due to payments and changes in interest rates | 58,575 | 1,096 |
March 31, 2011 | $ 91,332 | $ 25,543 |
Accretable yield amortized to interest income | (13,568) | (5,122) |
Reclassification to/from non-accretable difference | -- | 3,673 |
Increases in interest cash flows due to payments and changes in interest rates | 2,984 | 797 |
Accretable yield at |
$ 80,748 | $ 24,891 |
Acquisitions | 24,695 | -- |
Accretable yield amortized to interest income | (14,187) | (5,127) |
Reclassification to/from non-accretable difference | (3,018) | -- |
Increases (decreases) in interest cash flows due to payments and changes in interest rates | (1,741) | 432 |
Accretable yield at |
$ 86,497 | $ 20,196 |
WINTRUST SUBSIDIARIES AND LOCATIONS
Additionally, the Company operates various non-bank subsidiaries. First Insurance Funding Corporation, one of the largest insurance premium finance companies operating in
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," "point," "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, which may include, but are not limited to, those listed below and the Risk Factors discussed under Item 1A of the Company's 2010 Annual Report on Form 10-K and in any of the Company's subsequent
- negative economic conditions that adversely affect the economy, housing prices, the job market and other factors that may affect the Company's liquidity and the performance of its loan portfolios, particularly in the markets in which it operates;
- 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;
- changes in the level and volatility of interest rates, the capital markets and other market indices that may affect, among other things, the Company's liquidity and the value of its assets and liabilities;
- a decrease in the Company's regulatory capital ratios, including as a result of further 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 resulting from the Dodd-Frank Act;
- restrictions upon our ability to market our products to consumers and limitations on our ability to profitably operate our mortgage business resulting from the Dodd-Frank Act;
- increased costs of compliance, heightened regulatory capital requirements and other risks associated with changes in regulation and the current regulatory environment, including the Dodd-Frank Act;
- changes in capital requirements resulting from Basel II and III initiatives;
- increases in the Company's
FDIC insurance premiums, or the collection of special assessments by theFDIC ; - losses incurred in connection with repurchases and indemnification payments related to mortgages;
- 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);
- delinquencies or fraud with respect to the Company's premium finance business;
- failure to identify and complete favorable acquisitions in the future or unexpected difficulties or developments related to the integration of recent or future acquisitions;
- unexpected difficulties and losses related to
FDIC -assisted acquisitions, including those resulting from our loss-sharing arrangements with theFDIC ; - credit downgrades among commercial and life insurance providers that could negatively affect the value of collateral securing the Company's premium finance loans;
- any negative perception of the Company's reputation or financial strength;
- the loss of customers as a result of technological changes allowing consumers to complete their financial transactions without the use of a bank;
- the ability of the Company to attract and retain senior management experienced in the banking and financial services industries;
- the Company's ability to comply with covenants under its securitization facility and credit facility;
- unexpected difficulties or unanticipated developments related to the Company's strategy of de novo bank formations and openings, which typically require over 13 months of operations before becoming profitable due to the impact of organizational and overhead expenses, the startup phase of generating deposits and the time lag typically involved in redeploying deposits into attractively priced loans and other higher yielding earning assets;
- changes in accounting standards, rules and interpretations and the impact on the Company's financial statements;
- adverse effects on our operational systems resulting from failures, human error or tampering;
- significant litigation involving the Company; and
- the ability of the Company to receive dividends from its subsidiaries.
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 or on behalf of Wintrust. 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 release revisions to these forward-looking statements or reflect events or circumstances after the date of this press release. Persons are advised, however, to consult further disclosures management makes on related subjects in its reports filed with the
CONFERENCE CALL, WEB CAST AND REPLAY
The Company will hold a conference call at
Supplemental Financial Information
5 Quarter Trends
Selected Financial Highlights - 5 Quarter Trends | |||||
(Dollars in thousands, except per share data) | Three Months Ended | ||||
2011 | 2011 | 2011 | 2010 | 2010 | |
Selected Financial Condition Data (at end of period): | |||||
Total assets | $ 15,914,804 | $ 14,615,897 | $ 14,094,294 | $ 13,980,156 | $ 14,100,368 |
Total loans, excluding covered loans | 10,272,711 | 9,925,077 | 9,561,802 | 9,599,886 | 9,461,155 |
Total deposits | 12,306,008 | 11,259,260 | 10,915,169 | 10,803,673 | 10,962,239 |
Junior subordinated debentures | 249,493 | 249,493 | 249,493 | 249,493 | 249,493 |
Total shareholders' equity | 1,528,187 | 1,473,386 | 1,453,253 | 1,436,549 | 1,398,912 |
Selected Statements of Income Data: | |||||
Net interest income | 118,410 | 108,706 | 109,614 | 112,677 | 102,980 |
Net revenue (1) | 185,657 | 145,358 | 150,501 | 157,138 | 157,636 |
Pre-tax adjusted earnings (2) | 60,936 | 54,127 | 49,047 | 57,675 | 49,843 |
Net income | 30,202 | 11,750 | 16,402 | 14,205 | 20,098 |
Net income (loss) per common share – Basic | $ 0.82 | $ 0.31 | $ 0.44 | $ (0.06) | $ 0.49 |
Net income (loss) per common share – Diluted | $ 0.65 | $ 0.25 | $ 0.36 | $ (0.06) | $ 0.47 |
Selected Financial Ratios and Other Data: | |||||
Performance Ratios: | |||||
Net interest margin (2) | 3.37% | 3.40% | 3.48% | 3.46% | 3.22% |
Non-interest income to average assets | 1.72% | 1.04% | 1.18% | 1.24% | 1.56% |
Non-interest expense to average assets | 2.72% | 2.76% | 2.84% | 2.97% | 2.85% |
Net overhead ratio (3) | 1.00% | 1.72% | 1.66% | 1.73% | 1.28% |
Efficiency ratio (2) (4) | 57.21% | 67.22% | 65.05% | 67.48% | 67.01% |
Return on average assets | 0.77% | 0.33% | 0.47% | 0.40% | 0.57% |
Return on average common equity | 7.94% | 3.05% | 4.49% | (0.66)% | 5.44% |
Average total assets | $ 15,526,427 | $ 14,105,136 | $ 14,018,525 | $ 14,199,351 | $ 14,015,757 |
Average total shareholders' equity | 1,507,717 | 1,460,071 | 1,437,869 | 1,442,754 | 1,391,507 |
Average loans to average deposits ratio | 85.0% | 90.9% | 91.2% | 89.0% | 88.7% |
Average loans to average deposits ratio (including covered loans) | 90.7 | 94.8 | 94.2 | 92.1 | 91.7 |
Common Share Data at end of period: | |||||
Market price per common share | $ 25.81 | $ 32.18 | $ 36.75 | $ 33.03 | $ 32.41 |
Book value per common share (2) | $ 33.92 | $ 33.63 | $ 33.70 | $ 32.73 | $ 35.70 |
Tangible common book value per share (2) | $ 26.47 | $ 26.67 | $ 26.65 | $ 25.80 | $ 26.34 |
Common shares outstanding | 35,924,066 | 34,988,125 | 34,947,251 | 34,864,068 | 31,143,740 |
Other Data at end of period:(8) | |||||
Leverage Ratio (5) | 9.6% | 10.3% | 10.3% | 10.1% | 10.3% |
Tier 1 Capital to risk-weighted assets (5) | 12.0% | 12.3% | 12.7% | 12.5% | 12.3% |
Total capital to risk-weighted assets (5) | 13.3% | 13.5% | 14.1% | 13.8% | 13.5% |
Tangible Common Equity ratio (TCE) (2) (7) | 7.4% | 7.9% | 8.0% | 8.0% | 5.9% |
Allowance for credit losses (6) | $ 132,051 | $ 119,697 | $ 117,067 | $ 118,037 | $ 112,807 |
Non-performing loans | 133,976 | 156,072 | 155,387 | 142,132 | 134,323 |
Allowance for credit losses to total loans (6) | 1.29% | 1.21% | 1.22% | 1.23% | 1.19% |
Non-performing loans to total loans | 1.30% | 1.57% | 1.63% | 1.48% | 1.42% |
Number of: | |||||
Bank subsidiaries | 15 | 15 | 15 | 15 | 15 |
Non-bank subsidiaries | 7 | 7 | 8 | 8 | 8 |
Banking offices | 99 | 88 | 88 | 86 | 85 |
(1) Net revenue includes net interest income and non-interest income | |||||
(2) See "Supplemental Financial Measures/Ratios" 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 total average assets. A lower ratio indicates a higher degree of efficiency. | |||||
(4) The efficiency ratio is calculated by dividing total non-interest expense by tax-equivalent net revenue (less securities gains or losses). A lower ratio indicates more efficient revenue generation. | |||||
(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, but excluding the allowance for covered loan losses. | |||||
(7) Total shareholders' equity minus preferred stock and total intangible assets divided by total assets minus total intangible assets | |||||
(8) Asset quality ratios exclude covered loans. | |||||
Consolidated Statements of Condition - 5 Quarter Trends | |||||
(Unaudited) | (Unaudited) | (Unaudited) | (Unaudited) | ||
(In thousands) | 2011 | 2011 | 2011 | 2010 | 2010 |
Assets | |||||
Cash and due from banks | $ 147,270 | $ 140,434 | $ 140,919 | $ 153,690 | $ 155,067 |
Federal funds sold and securities purchased under resale agreements | 13,452 | 43,634 | 33,575 | 18,890 | 88,913 |
Interest-bearing deposits with other banks | 1,101,353 | 990,308 | 946,193 | 865,575 | 1,224,584 |
Available-for-sale securities, at fair value | 1,267,682 | 1,456,426 | 1,710,321 | 1,496,302 | 1,324,179 |
Trading account securities | 297 | 509 | 2,229 | 4,879 | 4,935 |
99,749 | 86,761 | 85,144 | 82,407 | 80,445 | |
Brokerage customer receivables | 27,935 | 29,736 | 25,361 | 24,549 | 25,442 |
Mortgage loans held-for-sale, at fair value | 204,081 | 133,083 | 92,151 | 356,662 | 307,231 |
Mortgage loans held-for-sale, at lower of cost or market | 8,955 | 5,881 | 2,335 | 14,785 | 13,209 |
Loans, net of unearned income, excluding covered loans | 10,272,711 | 9,925,077 | 9,561,802 | 9,599,886 | 9,461,155 |
Covered loans | 680,075 | 408,669 | 431,299 | 334,353 | 353,840 |
Total loans | 10,952,786 | 10,333,746 | 9,993,101 | 9,934,239 | 9,814,995 |
Less: Allowance for loan losses | 118,649 | 117,362 | 115,049 | 113,903 | 110,432 |
Less: Allowance for covered loan losses | 12,496 | 7,443 | 4,844 | -- | -- |
Net loans | 10,821,641 | 10,208,941 | 9,873,208 | 9,820,336 | 9,704,563 |
Premises and equipment, net | 412,478 | 403,577 | 369,785 | 363,696 | 353,445 |
379,306 | 110,049 | 124,785 | 118,182 | 161,640 | |
Accrued interest receivable and other assets | 468,711 | 389,634 | 394,292 | 366,438 | 365,496 |
Trade date securities receivable | 637,112 | 322,091 | -- | -- | -- |
Goodwill | 302,369 | 283,301 | 281,940 | 281,190 | 278,025 |
Other intangible assets | 22,413 | 11,532 | 12,056 | 12,575 | 13,194 |
Total assets | $ 15,914,804 | $ 14,615,897 | $ 14,094,294 | $ 13,980,156 | $ 14,100,368 |
Liabilities and Shareholders' Equity | |||||
Deposits: | |||||
Non-interest bearing | $ 1,631,709 | $ 1,397,433 | $ 1,279,256 | $ 1,201,194 | $ 1,042,730 |
Interest bearing | 10,674,299 | 9,861,827 | 9,635,913 | 9,602,479 | 9,919,509 |
Total deposits | 12,306,008 | 11,259,260 | 10,915,169 | 10,803,673 | 10,962,239 |
Notes payable | 3,004 | 1,000 | 1,000 | 1,000 | 1,000 |
474,570 | 423,500 | 423,500 | 423,500 | 414,832 | |
Other borrowings | 448,082 | 432,706 | 250,032 | 260,620 | 241,522 |
Secured borrowings - owed to securitization investors | 600,000 | 600,000 | 600,000 | 600,000 | 600,000 |
Subordinated notes | 40,000 | 40,000 | 50,000 | 50,000 | 55,000 |
Junior subordinated debentures | 249,493 | 249,493 | 249,493 | 249,493 | 249,493 |
Trade date securities payable | 73,874 | 2,243 | 10,000 | -- | 2,045 |
Accrued interest payable and other liabilities | 191,586 | 134,309 | 141,847 | 155,321 | 175,325 |
Total liabilities | 14,386,617 | 13,142,511 | 12,641,041 | 12,543,607 | 12,701,456 |
Shareholders' Equity: | |||||
Preferred stock | 49,736 | 49,704 | 49,672 | 49,640 | 287,234 |
Common stock | 35,926 | 34,988 | 34,947 | 34,864 | 31,145 |
Surplus | 997,854 | 969,315 | 967,587 | 965,203 | 682,318 |
Treasury stock | (68) | (50) | (74) | -- | (51) |
Retained earnings | 441,268 | 415,297 | 404,580 | 392,354 | 394,323 |
Accumulated other comprehensive income (loss) | 3,471 | 4,132 | (3,459) | (5,512) | 3,943 |
Total shareholders' equity | 1,528,187 | 1,473,386 | 1,453,253 | 1,436,549 | 1,398,912 |
Total liabilities and shareholders' equity | $ 15,914,804 | $ 14,615,897 | $ 14,094,294 | $ 13,980,156 | $ 14,100,368 |
Consolidated Statements of Income (Unaudited) - 5 Quarter Trends | |||||
Three Months Ended | |||||
(In thousands, except per share data) | 2011 | 2011 | 2011 | 2010 | 2010 |
Interest income | |||||
Interest and fees on loans | $ 140,543 | $ 132,338 | $ 136,543 | $ 144,652 | $ 137,902 |
Interest bearing deposits with banks | 917 | 870 | 936 | 1,342 | 1,339 |
Federal funds sold and securities purchased under resale agreements | 28 | 23 | 32 | 39 | 35 |
Securities | 12,667 | 11,438 | 9,540 | 7,236 | 7,438 |
Trading account securities | 15 | 10 | 13 | 11 | 19 |
584 | 572 | 550 | 512 | 488 | |
Brokerage customer receivables | 197 | 194 | 166 | 170 | 180 |
Total interest income | 154,951 | 145,445 | 147,780 | 153,962 | 147,401 |
Interest expense | |||||
Interest on deposits | 21,893 | 22,404 | 23,956 | 27,853 | 31,088 |
Interest on |
4,166 | 4,010 | 3,958 | 4,038 | 4,042 |
Interest on notes payable and other borrowings | 2,874 | 2,715 | 2,630 | 1,631 | 1,411 |
Interest on secured borrowings - owed to securitization investors | 3,003 | 2,994 | 3,040 | 3,089 | 3,167 |
Interest on subordinated notes | 168 | 194 | 212 | 233 | 265 |
Interest on junior subordinated debentures | 4,437 | 4,422 | 4,370 | 4,441 | 4,448 |
Total interest expense | 36,541 | 36,739 | 38,166 | 41,285 | 44,421 |
Net interest income | 118,410 | 108,706 | 109,614 | 112,677 | 102,980 |
Provision for credit losses | 29,290 | 29,187 | 25,344 | 28,795 | 25,528 |
Net interest income after provision for credit losses | 89,120 | 79,519 | 84,270 | 83,882 | 77,452 |
Non-interest income | |||||
Wealth management | 11,994 | 10,601 | 10,236 | 10,108 | 8,973 |
Mortgage banking | 14,469 | 12,817 | 11,631 | 22,686 | 20,980 |
Service charges on deposit accounts | 4,085 | 3,594 | 3,311 | 3,346 | 3,384 |
Gains on available-for-sale securities, net | 225 | 1,152 | 106 | 159 | 9,235 |
Gain on bargain purchases | 27,390 | 746 | 9,838 | 250 | 6,593 |
Trading gains (losses) | 591 | (30) | (440) | 611 | 210 |
Other | 8,493 | 7,772 | 6,205 | 7,301 | 5,281 |
Total non-interest income | 67,247 | 36,652 | 40,887 | 44,461 | 54,656 |
Non-interest expense | |||||
Salaries and employee benefits | 61,863 | 53,079 | 56,099 | 59,031 | 57,014 |
Equipment | 4,501 | 4,409 | 4,264 | 4,384 | 4,203 |
Occupancy, net | 7,512 | 6,772 | 6,505 | 5,927 | 6,254 |
Data processing | 3,836 | 3,147 | 3,523 | 4,388 | 3,891 |
Advertising and marketing | 2,119 | 1,440 | 1,614 | 1,881 | 1,650 |
Professional fees | 5,085 | 4,533 | 3,546 | 4,775 | 4,555 |
Amortization of other intangible assets | 970 | 704 | 689 | 719 | 701 |
3,100 | 3,281 | 4,518 | 4,572 | 4,642 | |
OREO expenses, net | 5,134 | 6,577 | 5,808 | 7,384 | 4,767 |
Other | 12,201 | 13,264 | 11,543 | 13,140 | 12,046 |
Total non-interest expense | 106,321 | 97,206 | 98,109 | 106,201 | 99,723 |
Income before taxes | 50,046 | 18,965 | 27,048 | 22,142 | 32,385 |
Income tax expense | 19,844 | 7,215 | 10,646 | 7,937 | 12,287 |
Net income | $ 30,202 | $ 11,750 | $ 16,402 | $ 14,205 | $ 20,098 |
Preferred stock dividends and discount accretion | $ 1,032 | $ 1,033 | $ 1,031 | $ 16,175 | $ 4,943 |
Net income (loss) applicable to common shares | $ 29,170 | $ 10,717 | $ 15,371 | $ (1,970) | $ 15,155 |
Net income (loss) per common share - Basic | $ 0.82 | $ 0.31 | $ 0.44 | $ (0.06) | $ 0.49 |
Net income (loss) per common share - Diluted | $ 0.65 | $ 0.25 | $ 0.36 | $ (0.06) | $ 0.47 |
Cash dividends declared per common share | $ -- | $ 0.09 | $ -- | $ 0.09 | |
Weighted average common shares outstanding | 35,550 | 34,971 | 34,928 | 32,015 | 31,117 |
Dilutive potential common shares | 10,551 | 8,438 | 7,794 | -- | 988 |
Average common shares and dilutive common shares | 46,101 | 43,409 | 42,722 | 32,015 | 32,105 |
Period End |
||||||||||
(Dollars in thousands) | 2011 | 2011 | 2011 | 2010 | 2010 | |||||
Balance: | ||||||||||
Commercial | $ 2,337,098 | $ 2,132,436 | $ 1,937,561 | $ 2,049,326 | $ 1,952,791 | |||||
Commercial real estate | 3,465,321 | 3,374,668 | 3,356,562 | 3,338,007 | 3,331,498 | |||||
Home equity | 879,180 | 880,702 | 891,332 | 914,412 | 919,824 | |||||
Residential real-estate | 326,207 | 329,381 | 344,909 | 353,336 | 342,009 | |||||
Premium finance receivables - commercial | 1,417,572 | 1,429,436 | 1,337,851 | 1,265,500 | 1,323,934 | |||||
Premium finance receivables - life insurance | 1,671,443 | 1,619,668 | 1,539,521 | 1,521,886 | 1,434,994 | |||||
Indirect consumer (1) | 62,452 | 57,718 | 52,379 | 51,147 | 56,575 | |||||
Consumer and other | 113,438 | 101,068 | 101,687 | 106,272 | 99,530 | |||||
Total loans, net of unearned income, excluding covered loans | $ 10,272,711 | $ 9,925,077 | $ 9,561,802 | $ 9,599,886 | $ 9,461,155 | |||||
Covered loans | 680,075 | 408,669 | 431,299 | 334,353 | 353,840 | |||||
Total loans, net of unearned income | $ 10,952,786 | $ 10,333,746 | $ 9,993,101 | $ 9,934,239 | $ 9,814,995 | |||||
Mix: | ||||||||||
Commercial | 21% | 20% | 19% | 21% | 20% | |||||
Commercial real estate | 32 | 33 | 34 | 34 | 34 | |||||
Home equity | 8 | 8 | 9 | 9 | 9 | |||||
Residential real-estate | 3 | 3 | 4 | 3 | 3 | |||||
Premium finance receivables - commercial | 13 | 14 | 13 | 13 | 13 | |||||
Premium finance receivables - life insurance | 15 | 16 | 15 | 15 | 15 | |||||
Indirect consumer (1) | 1 | 1 | 1 | 1 | 1 | |||||
Consumer and other | 1 | 1 | 1 | 1 | 1 | |||||
Total loans, net of unearned income, excluding covered loans | 94% | 96% | 96% | 97% | 96% | |||||
Covered loans | 6 | 4 | 4 | 3 | 4 | |||||
Total loans, net of unearned income | 100% | 100% | 100% | 100% | 100% | |||||
(1) Includes autos, boats, snowmobiles and other indirect consumer loans. | ||||||||||
Period End Deposits Balances - 5 Quarter Trends | ||||||||||
(Dollars in thousands) | 2011 | 2011 | 2011 | 2010 | 2010 | |||||
Balance: | ||||||||||
Non-interest bearing | $ 1,631,709 | $ 1,397,433 | $ 1,279,256 | $ 1,201,194 | $ 1,042,730 | |||||
NOW | 1,633,752 | 1,530,068 | 1,526,955 | 1,561,507 | 1,551,749 | |||||
Wealth Management deposits (1) | 730,315 | 737,428 | 659,194 | 658,660 | 710,435 | |||||
Money Market | 2,190,117 | 1,985,661 | 1,844,416 | 1,759,866 | 1,746,168 | |||||
Savings | 867,483 | 736,974 | 749,681 | 744,534 | 713,823 | |||||
Time certificates of deposit | 5,252,632 | 4,871,696 | 4,855,667 | 4,877,912</td> | 5,197,334 | |||||
Total deposits | $ 12,306,008 | $ 11,259,260 | $ 10,915,169 | $ 10,803,673 | $ 10,962,239 | |||||
Mix: | ||||||||||
Non-interest bearing | 13% | 12% | 12% | 11% | 10% | |||||
NOW | 13 | 14 | 14 | 15 | 14 | |||||
Wealth Management deposits (1) | 6 | 6 | 6 | 6 | 6 | |||||
Money Market | 18 | 18 | 17 | 16 | 16 | |||||
Savings | 7 | 7 | 7 | 7 | 7 | |||||
Time certificates of deposit | 43 | 43 | 44 | 45 | 47 | |||||
Total deposits | 100% | 100% | 100% | 100% | 100% | |||||
(1) Represents deposit balances of the Company's subsidiary banks from brokerage customers of |
||||||||||
Net Interest Margin (Including Call Option Income) - 5 Quarter Trends | |||||
Three Months Ended | |||||
(Dollars in thousands) | 2011 | 2011 | 2011 | 2010 | 2010 |
Net interest income | $ 118,828 | $ 109,114 | $ 110,028 | $ 113,083 | $ 103,396 |
Call option income | 3,436 | 2,287 | 2,470 | 1,075 | 703 |
Net interest income including call option income | $ 122,264 | $ 111,401 | $ 112,498 | $ 114,158 | $ 104,099 |
Yield on earning assets | 4.41% | 4.54% | 4.68% | 4.72% | 4.59% |
Rate on interest-bearing liabilities | 1.18 | 1.32 | 1.39 | 1.43 | 1.55 |
Rate spread | 3.23% | 3.22% | 3.29% | 3.29% | 3.04% |
Net free funds contribution | 0.14 | 0.18 | 0.19 | 0.17 | 0.18 |
Net interest margin | 3.37 | 3.40 | 3.48 | 3.46 | 3.22 |
Call option income | 0.10 | 0.07 | 0.08 | 0.03 | 0.02 |
Net interest margin including call option income | 3.47% | 3.47% | 3.56% | 3.49% | 3.24% |
Net Interest Margin (Including Call Option Income - YTD Trends) | |||||
Nine Months Ended | Years Ended | ||||
(Dollars in thousands) | 2011 | 2010 | 2009 | 2008 | 2007 |
Net interest income | $ 337,971 | $ 417,565 | $ 314,096 | $ 247,054 | $ 264,777 |
Call option income | 8,193 | 2,236 | 1,998 | 29,024 | 2,628 |
Net interest income including call option income | $ 346,164 | $ 419,801 | $ 316,094 | $ 276,078 | $ 267,405 |
Yield on earning assets | 4.54% | 4.80% | 5.07% | 5.88% | 7.21% |
Rate on interest-bearing liabilities | 1.29 | 1.61 | 2.29 | 3.31 | 4.39 |
Rate spread | 3.25% | 3.19% | 2.78% | 2.57% | 2.82% |
Net free funds contribution | 0.16 | 0.18 | 0.23 | 0.24 | 0.29 |
Net interest margin | 3.41 | 3.37 | 3.01 | 2.81 | 3.11 |
Call option income | 0.08 | 0.02 | 0.02 | 0.33 | 0.03 |
Net interest margin including call option income | 3.49% | 3.39% | 3.03% | 3.14% | 3.14% |
Quarterly Average Balances - 5 Quarter Trends | |||||
Three Months Ended | |||||
(In thousands) | 2011 | 2011 | 2011 | 2010 | 2010 |
Liquidity management assets | $ 3,083,508 | $ 2,591,398 | $ 2,632,012 | $ 2,844,351 | $ 2,802,964 |
Other earning assets | 28,834 | 28,886 | 27,718 | 29,676 | 34,263 |
Loans, net of unearned income | 10,200,733 | 9,859,789 | 9,849,309 | 9,777,435 | 9,603,561 |
Covered loans | 680,003 | 418,129 | 326,571 | 337,690 | 325,751 |
Total earning assets | $ 13,993,078 | $ 12,898,202 | $ 12,835,610 | $ 12,989,152 | $ 12,766,539 |
Allowance for loan losses | (128,848) | (125,537) | (118,610) | (116,447) | (113,631) |
Cash and due from banks | 140,010 | 135,670 | 152,264 | 151,562 | 154,078 |
Other assets | 1,522,187 | 1,196,801 | 1,149,261 | 1,175,084 | 1,208,771 |
Total assets | $ 15,526,427 | $ 14,105,136 | $ 14,018,525 | $ 14,199,351 | $ 14,015,757 |
Interest-bearing deposits | $ 10,442,886 | $ 9,491,778 | $ 9,542,637 | $ 9,839,223 | $ 9,823,525 |
486,379 | 421,502 | 416,021 | 415,260 | 414,789 | |
Notes payable and other borrowings | 461,141 | 338,304 | 266,379 | 244,044 | 232,991 |
Secured borrowings - owed to securitization investors | 600,000 | 600,000 | 600,000 | 600,000 | 600,000 |
Subordinated notes | 40,000 | 45,440 | 50,000 | 53,369 | 55,000 |
Junior subordinated notes | 249,493 | 249,493 | 249,493 | 249,493 | 249,493 |
Total interest-bearing liabilities | $ 12,279,899 | $ 11,146,517 | $ 11,124,530 | $ 11,401,389 | $ 11,375,798 |
Non-interest bearing deposits | 1,553,769 | 1,349,549 | 1,261,374 | 1,148,208 | 1,005,170 |
Other liabilities | 185,042 | 148,999 | 194,752 | 207,000 | 243,282 |
Equity | 1,507,717 | 1,460,071 | 1,437,869 | 1,442,754 | 1,391,507 |
Total liabilities and shareholders' equity | $ 15,526,427 | $ 14,105,136 | $ 14,018,525 | $ 14,199,351 | $ 14,015,757 |
Net Interest Margin - 5 Quarter Trends | |||||
Three Months Ended | |||||
2011 | 2011 | 2011 | 2010 | 2010 | |
Yield earned on: | |||||
Liquidity management assets | 1.87% | 2.04% | 1.75% | 1.32% | 1.36% |
Other earning assets | 2.98 | 2.89 | 2.65 | 2.45 | 2.37 |
Loans, net of unearned income | 4.97 | 5.05 | 5.34 | 5.71 | 5.54 |
Covered loans | 7.54 | 8.06 | 8.78 | 4.75 | 4.84 |
Total earning assets | 4.41% | 4.54% | 4.68% | 4.72% | 4.59% |
Rate paid on: | |||||
Interest-bearing deposits | 0.83% | 0.95% | 1.02% | 1.12% | 1.26% |
3.40 | 3.82 | 3.86 | 3.86 | 3.87 | |
Notes payable and other borrowings | 2.47 | 3.22 | 4.00 | 2.65 | 2.40 |
Secured borrowings - owed to securitization investors | 1.99 | 2.00 | 2.05 | 2.04 | 2.09 |
Subordinated notes | 1.65 | 1.69 | 1.69 | 1.71 | 1.89 |
Junior subordinated notes | 6.96 | 7.01 | 7.01 | 6.97 | 6.98 |
Total interest-bearing liabilities | 1.18% | 1.32% | 1.39% | 1.43% | 1.55% |
Interest rate spread | 3.23% | 3.22% | 3.29% | 3.29% | 3.04% |
Net free funds/contribution | 0.14 | 0.18 | 0.19 | 0.17 | 0.18 |
Net interest income/Net interest margin | 3.37% | 3.40% | 3.48% | 3.46% | 3.22% |
Non-Interest Income - 5 Quarter Trends | |||||
Three Months Ended | |||||
<chron>March 31, | |||||
(In thousands) | 2011 | 2011 | 2011 | 2010 | 2010 |
Brokerage | $ 6,108 | $ 6,208 | $ 6,325 | $ 6,641 | $ 5,806 |
Trust and asset management | 5,886 | 4,393 | 3,911 | 3,467 | 3,167 |
Total wealth management | 11,994 | 10,601 | 10,236 | 10,108 | 8,973 |
Mortgage banking | 14,469 | 12,817 | 11,631 | 22,686 | 20,980 |
Service charges on deposit accounts | 4,085 | 3,594 | 3,311 | 3,346 | 3,384 |
Gains on available-for-sale securities | 225 | 1,152 | 106 | 159 | 9,235 |
Gain on bargain purchases | 27,390 | 746 | 9,838 | 250 | 6,593 |
Trading gains (losses) | 591 | (30) | (440) | 611 | 210 |
Other: | |||||
Fees from covered call options | 3,436 | 2,287 | 2,470 | 1,074 | 703 |
Bank Owned Life Insurance | 351 | 661 | 876 | 811 | 552 |
Administrative services | 784 | 781 | 717 | 715 | 744 |
Miscellaneous | 3,922 | 4,043 | 2,142 | 4,701 | 3,282 |
Total other income | 8,493 | 7,772 | 6,205 | 7,301 | 5,281 |
Total Non-Interest Income | $ 67,247 | $ 36,652 | $ 40,887 | $ 44,461 | $ 54,656 |
Non-Interest Expense - 5 Quarter Trends | |||||
Three Months Ended | |||||
(In thousands) | 2011 | 2011 | 2011 | 2010 | 2010 |
Salaries and employee benefits: | |||||
Salaries | $ 36,633 | $ 32,008 | $ 33,135 | $ 31,876 | $ 30,537 |
Commissions and bonus | 14,984 | 10,760 | 10,714 | 18,043 | 17,366 |
Benefits | 10,246 | 10,311 | 12,250 | 9,112 | 9,111 |
Total salaries and employee benefits | 61,863 | 53,079 | 56,099 | 59,031 | 57,014 |
Equipment | 4,501 | 4,409 | 4,264 | 4,384 | 4,203 |
Occupancy, net | 7,512 | 6,772 | 6,505 | 5,927 | 6,254 |
Data processing | 3,836 | 3,147 | 3,523 | 4,388 | 3,891 |
Advertising and marketing | 2,119 | 1,440 | 1,614 | 1,881 | 1,650 |
Professional fees | 5,085 | 4,533 | 3,546 | 4,775 | 4,555 |
Amortization of other intangibles | 970 | 704 | 689 | 719 | 701|
3,100 | 3,281 | 4,518 | 4,572 | 4,642 | |
OREO expenses, net | 5,134 | 6,577 | 5,808 | 7,384 | 4,767 |
Other: | |||||
Commissions - 3rd party brokers | 936 | 991 | 1,030 | 965 | 979 |
Postage | 1,102 | 1,170 | 1,078 | 1,220 | 1,254 |
Stationery and supplies | 904 | 888 | 840 | 1,069 | 812 |
Miscellaneous | 9,259 | 10,215 | 8,595 | 9,886 | 9,001 |
Total other expense | 12,201 | 13,264 | 11,543 | 13,140 | 12,046 |
Total Non-Interest Expense | $ 106,321 | $ 97,206 | $ 98,109 | $ 106,201 | $ 99,723 |
Allowance for Credit Losses, excluding covered loans - 5 Quarter Trends | |||||
Three Months Ended | |||||
June 30, |
March 31, |
||||
(Dollars in thousands) | 2011 | 2011 | 2011 | 2010 | 2010 |
Allowance for loan losses at beginning of period | $ 117,362 | $ 115,049 | $ 113,903 | $ 110,432 | $ 106,547 |
Provision for credit losses | 28,263 | 28,666 | 24,376 | 28,795 | 25,528 |
Other adjustments | -- | -- | -- | -- | -- |
Reclassification (to)/from allowance for unfunded lending-related commitments | (66) | (317) | 2,116 | (1,781) | (206) |
Charge-offs: | |||||
Commercial | 8,851 | 7,583 | 9,140 | 6,060 | 3,076 |
Commercial real estate | 14,734 | 20,691 | 13,342 | 13,591 | 15,727 |
Home equity | 1,071 | 1,300 | 773 | 1,322 | 1,234 |
Residential real estate | 926 | 282 | 1,275 | 311 | 116 |
Premium finance receivables - commercial | 1,738 | 1,893 | 1,507 | 1,820 | 1,505 |
Premium finance receivables - life insurance | 31 | 214 | 30 | 154 | 79 |
Indirect consumer | 24 | 44 | 120 | 239 | 198 |
Consumer and other | 282 | 266 | 160 | 565 | 288 |
Total charge-offs | 27,657 | 32,273 | 26,347 | 24,062 | 22,223 |
Recoveries: | |||||
Commercial | 150 | 301 | 266 | 268 | 286 |
Commercial real estate | 299 | 463 | 338 | 57 | 197 |
Home equity | 32 | 19 | 8 | 2 | 8 |
Residential real estate | 3 | 3 | 2 | 2 | 3 |
Premium finance receivables - commercial | 159 | 5,375 | 268 | 144 | 220 |
Premium finance receivables - life insurance | -- | 12 | -- | -- | -- |
Indirect consumer | 75 | 42 | 66 | 38 | 29 |
Consumer and other | 29 | 22 | 53 | 8 | 43 |
Total recoveries | 747 | 6,237 | 1,001 | 519 | 786 |
Net charge-offs | (26,910) | (26,036) | (25,346) | (23,543) | (21,437) |
Allowance for loan losses at period end | $ 118,649 | $ 117,362 | $ 115,049 | $ 113,903 | $ 110,432 |
Allowance for unfunded lending-related commitments at period end | 13,402 | 2,335 | 2,018 | 4,134 | 2,375 |
Allowance for credit losses at period end | $ 132,051 | $ 119,697 | $ 117,067 | $ 118,037 | $ 112,807 |
Annualized net charge-offs by category as a percentage of its own respective category's average: | |||||
Commercial | 1.60% | 1.45% | 1.85% | 1.11% | 0.60% |
Commercial real estate | 1.69 | 2.40 | 1.57 | 1.66 | 1.84 |
Home equity | 0.47 | 0.58 | 0.34 | 0.57 | 0.53 |
Residential real estate | 0.80 | 0.25 | 0.91 | 0.17 | 0.07 |
Premium finance receivables - commercial | 0.42 | (0.99) | 0.37 | 0.54 | 0.39 |
Premium finance receivables - life insurance | 0.01 | 0.05 | 0.01 | 0.04 | 0.02 |
Indirect consumer | (0.33) | 0.02 | 0.41 | 1.51 | 1.08 |
Consumer and other | 0.84 | 0.98 | 0.42 | 1.98 | 1.01 |
Total loans, net of unearned income | 1.05% | 1.06% | 1.04% | 0.96% | 0.89% |
Net charge-offs as a percentage of the provision for credit losses | 95.21% | 90.83% | 103.98% | 81.76% | 83.97% |
Loans at period-end | $ 10,272,711 | $ 9,925,077 | $ 9,561,802 | $ 9,599,886 | $ 9,461,155 |
Allowance for loan losses as a percentage of loans at period end | 1.15% | 1.18% | 1.20% | 1.19% | 1.17% |
Allowance for credit losses as a percentage of loans at period end | 1.29% | 1.21% | 1.22% | 1.23% | 1.19% |
Non-Performing Assets, excluding covered assets - 5 Quarter Trends | |||||
June 30, |
March 31, |
||||
(Dollars in thousands) | 2011 | 2011 | 2011 | 2010 | 2010 |
Loans past due greater than 90 days and still accruing: | |||||
Commercial | $ -- | $ -- | $ 150 | $ 478 | $ -- |
Commercial real-estate | 1,105 | -- | 1,997 | -- | -- |
Home equity | -- | -- | -- | -- | -- |
Residential real-estate | -- | -- | -- | -- | -- |
Premium finance receivables - commercial | 4,599 | 4,446 | 6,319 | 8,096 | 6,853 |
Premium finance receivables - life insurance | 2,413 | 324 | -- | -- | 1,222 |
Indirect consumer | 292 | 284 | 310 | 318 | 355 |
Consumer and other | -- | -- | 1 | 1 | 2 |
Total loans past due greater than 90 days and still accruing | 8,409 | 5,054 | 8,777 | 8,893 | 8,432 |
<strong>Non-accrual loans: | |||||
Commercial | 24,836 | 26,168 | 26,157 | 16,382 | 19,444 |
Commercial real-estate | 69,669 | 89,793 | 94,001 | 93,963 | 83,340 |
Home equity | 15,426 | 15,853 | 11,184 | 7,425 | 6,144 |
Residential real-estate | 7,546 | 7,379 | 4,909 | 6,085 | 6,644 |
Premium finance receivables - commercial | 6,942 | 10,309 | 9,550 | 8,587 | 9,082 |
Premium finance receivables - life insurance | 349 | 670 | 342 | 354 | 222 |
Indirect consumer | 146 | 89 | 320 | 191 | 446 |
Consumer and other | 653 | 757 | 147 | 252 | 569 |
Total non-accrual loans | 125,567 | 151,018 | 146,610 | 133,239 | 125,891 |
Total non-performing loans: | |||||
Commercial | 24,836 | 26,168 | 26,307 | 16,860 | 19,444 |
Commercial real-estate | 70,774 | 89,793 | 95,998 | 93,963 | 83,340 |
Home equity | 15,426 | 15,853 | 11,184 | 7,425 | 6,144 |
Residential real-estate | 7,546 | 7,379 | 4,909 | 6,085 | 6,644 |
Premium finance receivables - commercial | 11,541 | 14,755 | 15,869 | 16,683 | 15,935 |
Premium finance receivables - life insurance | 2,762 | 994 | 342 | 354 | 1,444 |
Indirect consumer | 438 | 373 | 630 | 509 | 801 |
Consumer and other | 653 | 757 | 148 | 253 | 571 |
Total non-performing loans | $ 133,976 | $ 156,072 | $ 155,387 | $ 142,132 | $ 134,323 |
Other real estate owned | 86,622 | 82,772 | 85,290 | 71,214 | 76,654 |
Other real estate owned - obtained in acquisition | 10,302 | -- | -- | -- | -- |
Total non-performing assets | $ 230,900 | $ 238,844 | $ 240,677 | $ 213,346 | $ 210,977 |
Total non-performing loans by category as a percent of its own respective category's period-end balance: | |||||
Commercial | 1.06% | 1.23% | 1.36% | 0.82% | 1.00% |
Commercial real-estate | 2.04 | 2.66 | 2.86 | 2.81 | 2.50 |
Home equity | 1.75 | 1.80 | 1.25 | 0.81 | 0.67 |
Residential real-estate | 2.31 | 2.24 | 1.42 | 1.72 | 1.94 |
Premium finance receivables - commercial | 0.81 | 1.03 | 1.19 | 1.32 | 1.20 |
Premium finance receivables - life insurance | 0.17 | 0.06 | 0.02 | 0.02 | 0.10 |
Indirect consumer | 0.70 | 0.65 | 1.20 | 0.99 | 1.42 |
Consumer and other | 0.58 | 0.75 | 0.15 | 0.24 | 0.57 |
Total loans | 1.30% | 1.57% | 1.63% | 1.48% | 1.42% |
Total non-performing assets as a percentage of total assets | 1.45% | 1.63% | 1.71% | 1.53% | 1.50% |
Allowance for loan losses as a percentage of total non-performing loans | 88.56% | 75.20% | 74.04% | 80.14% | 82.21% |
CONTACT:Edward J. Wehmer , President & Chief Executive OfficerDavid A. Dykstra , Senior Executive Vice President & Chief Operating Officer (847) 615-4096 Web site address: www.wintrust.com
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