☑ | QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
☐ | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
Illinois | 36-3873352 | ||||
(State of incorporation or organization) | (I.R.S. Employer Identification No.) |
Title of Each Class | Ticker Symbol | Name of Each Exchange on Which Registered | ||||||
Common Stock, no par value | WTFC | The NASDAQ Global Select Market | ||||||
Fixed-to-Floating Rate Non-Cumulative Perpetual Preferred Stock, Series D, no par value | WTFCM | The NASDAQ Global Select Market | ||||||
Depositary Shares, Each Representing a 1/1,000th Interest in a Share of | WTFCP | The NASDAQ Global Select Market | ||||||
6.875% Fixed-Rate Reset Non-Cumulative Perpetual Preferred Stock, Series E, no par value |
Large accelerated filer | ☑ | Accelerated filer | ☐ | ||||||||||||||||||||
Non-accelerated filer | ☐ | (Do not check if a smaller reporting company) | Smaller reporting company | ☐ | |||||||||||||||||||
Emerging growth company | ☐ |
Page | ||||||||
PART I. — FINANCIAL INFORMATION | ||||||||
ITEM 1. | ||||||||
ITEM 2. | ||||||||
ITEM 3. | ||||||||
ITEM 4. | ||||||||
PART II. — OTHER INFORMATION | ||||||||
ITEM 1. | ||||||||
ITEM 1A. | ||||||||
ITEM 2. | ||||||||
ITEM 3. | Defaults Upon Senior Securities | NA | ||||||
ITEM 4. | Mine Safety Disclosures | NA | ||||||
ITEM 5. | Other Information | NA | ||||||
ITEM 6. | ||||||||
WINTRUST FINANCIAL CORPORATION AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CONDITION | |||||||||||||||||
(Unaudited) | (Unaudited) | ||||||||||||||||
(In thousands, except share data) | March 31, 2022 | December 31, 2021 | March 31, 2021 | ||||||||||||||
Assets | |||||||||||||||||
Cash and due from banks | $ | 462,516 | $ | 411,150 | $ | 426,325 | |||||||||||
Federal funds sold and securities purchased under resale agreements | 700,056 | 700,055 | 52 | ||||||||||||||
Interest-bearing deposits with banks | 4,013,597 | 5,372,603 | 3,348,794 | ||||||||||||||
Available-for-sale securities, at fair value | 2,998,898 | 2,327,793 | 2,430,749 | ||||||||||||||
Held-to-maturity securities, at amortized cost, net of allowance for credit losses of $159, $78 and $99 at March 31, 2022, December 31, 2021 and March 31, 2021, respectively ($3.1 billion, $2.9 billion and $2.1 billion fair value at March 31, 2022, December 31, 2021 and March 31, 2021, respectively) | 3,435,729 | 2,942,285 | 2,166,419 | ||||||||||||||
Trading account securities | 852 | 1,061 | 951 | ||||||||||||||
Equity securities with readily determinable fair value | 92,689 | 90,511 | 90,338 | ||||||||||||||
Federal Home Loan Bank and Federal Reserve Bank stock | 136,163 | 135,378 | 135,881 | ||||||||||||||
Brokerage customer receivables | 22,888 | 26,068 | 19,056 | ||||||||||||||
Mortgage loans held-for-sale, at fair value | 606,545 | 817,912 | 1,260,193 | ||||||||||||||
Loans, net of unearned income | 35,280,547 | 34,789,104 | 33,171,233 | ||||||||||||||
Allowance for loan losses | (250,539) | (247,835) | (277,709) | ||||||||||||||
Net loans | 35,030,008 | 34,541,269 | 32,893,524 | ||||||||||||||
Premises, software and equipment, net | 761,213 | 766,405 | 760,522 | ||||||||||||||
Lease investments, net | 240,656 | 242,082 | 238,984 | ||||||||||||||
Accrued interest receivable and other assets | 1,066,750 | 1,084,115 | 1,230,362 | ||||||||||||||
Goodwill | 655,402 | 655,149 | 646,017 | ||||||||||||||
Other acquisition-related intangible assets | 26,699 | 28,307 | 34,035 | ||||||||||||||
Total assets | $ | 50,250,661 | $ | 50,142,143 | $ | 45,682,202 | |||||||||||
Liabilities and Shareholders’ Equity | |||||||||||||||||
Deposits: | |||||||||||||||||
Non-interest-bearing | $ | 13,748,918 | $ | 14,179,980 | $ | 12,297,337 | |||||||||||
Interest-bearing | 28,470,404 | 27,915,605 | 25,575,315 | ||||||||||||||
Total deposits | 42,219,322 | 42,095,585 | 37,872,652 | ||||||||||||||
Federal Home Loan Bank advances | 1,241,071 | 1,241,071 | 1,228,436 | ||||||||||||||
Other borrowings | 482,516 | 494,136 | 516,877 | ||||||||||||||
Subordinated notes | 437,033 | 436,938 | 436,595 | ||||||||||||||
Junior subordinated debentures | 253,566 | 253,566 | 253,566 | ||||||||||||||
Trade date securities payable | 437 | — | 995 | ||||||||||||||
Accrued interest payable and other liabilities | 1,124,460 | 1,122,159 | 1,120,570 | ||||||||||||||
Total liabilities | 45,758,405 | 45,643,455 | 41,429,691 | ||||||||||||||
Shareholders’ Equity: | |||||||||||||||||
Preferred stock, no par value; 20,000,000 shares authorized: | |||||||||||||||||
Series D - $25 liquidation value; 5,000,000 shares issued and outstanding at March 31, 2022, December 31, 2021 and March 31, 2021 | 125,000 | 125,000 | 125,000 | ||||||||||||||
Series E - $25,000 liquidation value; 11,500 shares issued and outstanding at March 31, 2022, December 31, 2021 and March 31, 2021 | 287,500 | 287,500 | 287,500 | ||||||||||||||
Common stock, no par value; $1.00 stated value; 100,000,000 shares authorized at March 31, 2022, December 31, 2021 and March 31, 2021; 59,090,903 shares issued at March 31, 2022, 58,891,780 shares issued at December 31, 2021 and 58,726,900 shares issued at March 31, 2021 | 59,091 | 58,892 | 58,727 | ||||||||||||||
Surplus | 1,698,093 | 1,685,572 | 1,663,008 | ||||||||||||||
Treasury stock, at cost, 1,837,689 shares at March 31, 2022, 1,837,689 shares at December 31, 2021, and 1,703,627 shares at March 31, 2021 | (109,903) | (109,903) | (100,363) | ||||||||||||||
Retained earnings | 2,548,474 | 2,447,535 | 2,208,535 | ||||||||||||||
Accumulated other comprehensive (loss) income | (115,999) | 4,092 | 10,104 | ||||||||||||||
Total shareholders’ equity | 4,492,256 | 4,498,688 | 4,252,511 | ||||||||||||||
Total liabilities and shareholders’ equity | $ | 50,250,661 | $ | 50,142,143 | $ | 45,682,202 |
Three Months Ended | |||||||||||
(In thousands, except per share data) | March 31, 2022 | March 31, 2021 | |||||||||
Interest income | |||||||||||
Interest and fees on loans | $ | 285,698 | $ | 274,100 | |||||||
Mortgage loans held-for-sale | 6,087 | 9,036 | |||||||||
Interest-bearing deposits with banks | 1,687 | 1,199 | |||||||||
Federal funds sold and securities purchased under resale agreements | 431 | — | |||||||||
Investment securities | 32,398 | 19,264 | |||||||||
Trading account securities | 5 | 2 | |||||||||
Federal Home Loan Bank and Federal Reserve Bank stock | 1,772 | 1,745 | |||||||||
Brokerage customer receivables | 174 | 123 | |||||||||
Total interest income | 328,252 | 305,469 | |||||||||
Interest expense | |||||||||||
Interest on deposits | 14,854 | 27,944 | |||||||||
Interest on Federal Home Loan Bank advances | 4,816 | 4,840 | |||||||||
Interest on other borrowings | 2,239 | 2,609 | |||||||||
Interest on subordinated notes | 5,482 | 5,477 | |||||||||
Interest on junior subordinated debentures | 1,567 | 2,704 | |||||||||
Total interest expense | 28,958 | 43,574 | |||||||||
Net interest income | 299,294 | 261,895 | |||||||||
Provision for credit losses | 4,106 | (45,347) | |||||||||
Net interest income after provision for credit losses | 295,188 | 307,242 | |||||||||
Non-interest income | |||||||||||
Wealth management | 31,394 | 29,309 | |||||||||
Mortgage banking | 77,231 | 113,494 | |||||||||
Service charges on deposit accounts | 15,283 | 12,036 | |||||||||
(Losses) gains on investment securities, net | (2,782) | 1,154 | |||||||||
Fees from covered call options | 3,742 | — | |||||||||
Trading gains, net | 3,889 | 419 | |||||||||
Operating lease income, net | 15,475 | 14,440 | |||||||||
Other | 18,558 | 15,654 | |||||||||
Total non-interest income | 162,790 | 186,506 | |||||||||
Non-interest expense | |||||||||||
Salaries and employee benefits | 172,355 | 180,809 | |||||||||
Software and equipment | 22,810 | 20,912 | |||||||||
Operating lease equipment depreciation | 9,708 | 10,771 | |||||||||
Occupancy, net | 17,824 | 19,996 | |||||||||
Data processing | 7,505 | 6,048 | |||||||||
Advertising and marketing | 11,924 | 8,546 | |||||||||
Professional fees | 8,401 | 7,587 | |||||||||
Amortization of other acquisition-related intangible assets | 1,609 | 2,007 | |||||||||
FDIC insurance | 7,729 | 6,558 | |||||||||
Other real estate owned expense, net | (1,032) | (251) | |||||||||
Other | 25,465 | 23,906 | |||||||||
Total non-interest expense | 284,298 | 286,889 | |||||||||
Income before taxes | 173,680 | 206,859 | |||||||||
Income tax expense | 46,289 | 53,711 | |||||||||
Net income | $ | 127,391 | $ | 153,148 | |||||||
Preferred stock dividends | 6,991 | 6,991 | |||||||||
Net income applicable to common shares | $ | 120,400 | $ | 146,157 | |||||||
Net income per common share—Basic | $ | 2.11 | $ | 2.57 | |||||||
Net income per common share—Diluted | $ | 2.07 | $ | 2.54 | |||||||
Cash dividends declared per common share | $ | 0.34 | $ | 0.31 | |||||||
Weighted average common shares outstanding | 57,196 | 56,904 | |||||||||
Dilutive potential common shares | 862 | 681 | |||||||||
Average common shares and dilutive common shares | 58,058 | 57,585 |
Three Months Ended | |||||||||||
(In thousands) | March 31, 2022 | March 31, 2021 | |||||||||
Net income | $ | 127,391 | $ | 153,148 | |||||||
Unrealized losses on available-for-sale securities | |||||||||||
Before tax | (206,017) | (60,726) | |||||||||
Tax effect | 54,903 | 16,207 | |||||||||
Net of tax | (151,114) | (44,519) | |||||||||
Reclassification of net gains on available-for-sale securities included in net income | |||||||||||
Before tax | 250 | 210 | |||||||||
Tax effect | (67) | (56) | |||||||||
Net of tax | 183 | 154 | |||||||||
Reclassification of amortization of unrealized gains on investment securities transferred to held-to-maturity from available-for-sale | |||||||||||
Before tax | 42 | 57 | |||||||||
Tax effect | (11) | (15) | |||||||||
Net of tax | 31 | 42 | |||||||||
Net unrealized losses on available-for-sale securities | (151,328) | (44,715) | |||||||||
Unrealized gains on derivative instruments | |||||||||||
Before tax | 39,481 | 50,792 | |||||||||
Tax effect | (10,532) | (13,535) | |||||||||
Net unrealized gains on derivative instruments | 28,949 | 37,257 | |||||||||
Foreign currency adjustment | |||||||||||
Before tax | 2,842 | 2,734 | |||||||||
Tax effect | (554) | (554) | |||||||||
Net foreign currency adjustment | 2,288 | 2,180 | |||||||||
Total other comprehensive loss | (120,091) | (5,278) | |||||||||
Comprehensive income | $ | 7,300 | $ | 147,870 |
WINTRUST FINANCIAL CORPORATION AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS’ EQUITY (UNAUDITED) | |||||||||||||||||||||||||||||||||||||||||
(In thousands, except per share data) | Preferred stock | Common stock | Surplus | Treasury stock | Retained earnings | Accumulated other comprehensive income (loss) | Total shareholders’ equity | ||||||||||||||||||||||||||||||||||
Balance at January 1, 2021 | $ | 412,500 | $ | 58,473 | $ | 1,649,990 | $ | (100,363) | $ | 2,080,013 | $ | 15,382 | $ | 4,115,995 | |||||||||||||||||||||||||||
Net income | — | — | — | — | 153,148 | — | 153,148 | ||||||||||||||||||||||||||||||||||
Other comprehensive loss, net of tax | — | — | — | — | — | (5,278) | (5,278) | ||||||||||||||||||||||||||||||||||
Cash dividends declared on common stock, $0.31 per share | — | — | — | — | (17,635) | — | (17,635) | ||||||||||||||||||||||||||||||||||
Dividends on Series D preferred stock, $0.41 per share and Series E preferred stock, $429.69 per share | — | — | — | — | (6,991) | — | (6,991) | ||||||||||||||||||||||||||||||||||
Stock-based compensation | — | — | 2,862 | — | — | — | 2,862 | ||||||||||||||||||||||||||||||||||
Common stock issued for: | |||||||||||||||||||||||||||||||||||||||||
Exercise of stock options and warrants | — | 209 | 8,752 | — | — | — | 8,961 | ||||||||||||||||||||||||||||||||||
Restricted stock awards | — | 7 | (7) | — | — | — | — | ||||||||||||||||||||||||||||||||||
Employee stock purchase plan | — | 14 | 801 | — | — | — | 815 | ||||||||||||||||||||||||||||||||||
Director compensation plan | — | 24 | 610 | — | — | — | 634 | ||||||||||||||||||||||||||||||||||
Balance at March 31, 2021 | $ | 412,500 | $ | 58,727 | $ | 1,663,008 | $ | (100,363) | $ | 2,208,535 | $ | 10,104 | $ | 4,252,511 | |||||||||||||||||||||||||||
Balance at January 1, 2022 | $ | 412,500 | $ | 58,892 | $ | 1,685,572 | $ | (109,903) | $ | 2,447,535 | $ | 4,092 | $ | 4,498,688 | |||||||||||||||||||||||||||
Net income | — | — | — | — | 127,391 | — | 127,391 | ||||||||||||||||||||||||||||||||||
Other comprehensive loss, net of tax | — | — | — | — | — | (120,091) | (120,091) | ||||||||||||||||||||||||||||||||||
Cash dividends declared on common stock, $0.34 per share | — | — | — | — | (19,461) | — | (19,461) | ||||||||||||||||||||||||||||||||||
Dividends on Series D preferred stock, $0.41 per share and Series E preferred stock, $429.69 per share | — | — | — | — | (6,991) | — | (6,991) | ||||||||||||||||||||||||||||||||||
Stock-based compensation | — | — | 7,891 | — | — | — | 7,891 | ||||||||||||||||||||||||||||||||||
Common stock issued for: | |||||||||||||||||||||||||||||||||||||||||
Exercise of stock options and warrants | — | 79 | 3,279 | — | — | — | 3,358 | ||||||||||||||||||||||||||||||||||
Restricted stock awards | — | 52 | (52) | — | — | — | — | ||||||||||||||||||||||||||||||||||
Employee stock purchase plan | — | 10 | 832 | — | — | — | 842 | ||||||||||||||||||||||||||||||||||
Director compensation plan | — | 58 | 571 | — | — | — | 629 | ||||||||||||||||||||||||||||||||||
Balance at March 31, 2022 | $ | 412,500 | $ | 59,091 | $ | 1,698,093 | $ | (109,903) | $ | 2,548,474 | $ | (115,999) | $ | 4,492,256 | |||||||||||||||||||||||||||
Three Months Ended | |||||||||||
(In thousands) | March 31, 2022 | March 31, 2021 | |||||||||
Operating Activities: | |||||||||||
Net income | $ | 127,391 | $ | 153,148 | |||||||
Adjustments to reconcile net income to net cash provided by operating activities | |||||||||||
Provision for credit losses | 4,106 | (45,347) | |||||||||
Depreciation, amortization and accretion, net | 24,526 | 25,561 | |||||||||
Stock-based compensation expense | 7,891 | 2,862 | |||||||||
Amortization of premium on securities, net | 893 | 2,000 | |||||||||
Accretion of discount and deferred fees on loans, net | (7,540) | (21,335) | |||||||||
Mortgage servicing rights fair value changes, net | (37,349) | (7,877) | |||||||||
Non-designated derivatives fair value changes, net | (4,046) | (723) | |||||||||
Originations and purchases of mortgage loans held-for-sale | (887,393) | (2,221,967) | |||||||||
Early buy-out exercises of mortgage loans held-for-sale guaranteed by U.S. Government Agencies, net of subsequent paydowns or payoffs | (4,065) | (24,362) | |||||||||
Proceeds from sales of mortgage loans held-for-sale | 1,085,471 | 2,336,246 | |||||||||
Bank owned life insurance (“BOLI”) income | (48) | (1,124) | |||||||||
Decrease (increase) in trading securities, net | 209 | (280) | |||||||||
Decrease (increase) in brokerage customer receivables, net | 3,180 | (1,620) | |||||||||
Gains on mortgage loans sold | (20,690) | (85,200) | |||||||||
Losses (gains) on investment securities, net | 2,782 | (1,154) | |||||||||
(Gains) losses on sales of premises and equipment, net | (9) | 29 | |||||||||
Gains on sales and fair value adjustments of other real estate owned, net | (1,038) | (604) | |||||||||
Decrease in accrued interest receivable and other assets, net | 110,691 | 109,554 | |||||||||
Increase (decrease) in accrued interest payable and other liabilities, net | 53,062 | (1,026) | |||||||||
Net Cash Provided by Operating Activities | 458,024 | 216,781 | |||||||||
Investing Activities: | |||||||||||
Proceeds from maturities and calls of available-for-sale securities | 119,041 | 595,248 | |||||||||
Proceeds from maturities and calls of held-to-maturity securities | 66,966 | 106,535 | |||||||||
Proceeds from sales of available-for-sale securities | — | — | |||||||||
Proceeds from sales of equity securities with readily determinable fair value | 18,753 | 1,509 | |||||||||
Proceeds from sales and capital distributions of equity securities without readily determinable fair value | 250 | 386 | |||||||||
Purchases of available-for-sale securities | (996,293) | (31,524) | |||||||||
Purchases of held-to-maturity securities | (560,903) | (1,894,837) | |||||||||
Purchases of equity securities with readily determinable fair value | (23,255) | — | |||||||||
Purchases of equity securities without readily determinable fair value | (1,010) | (2,360) | |||||||||
Purchases of Federal Home Loan Bank and Federal Reserve Bank stock, net | (785) | (293) | |||||||||
Distributions from investments in partnerships, net | 124 | 60 | |||||||||
Proceeds from sales of other real estate owned | 2,497 | 2,162 | |||||||||
Decrease in interest-bearing deposits with banks, net | 1,359,947 | 1,454,501 | |||||||||
Increase in loans, net | (472,409) | (1,082,709) | |||||||||
Redemption of BOLI | 960 | — | |||||||||
Purchases of premises and equipment, net | (7,722) | (4,388) | |||||||||
Net Cash Used for Investing Activities | (493,839) | (855,710) | |||||||||
Financing Activities: | |||||||||||
Increase in deposit accounts, net | 123,733 | 780,009 | |||||||||
Decrease in other borrowings, net | (14,928) | (6,378) | |||||||||
Cash payments to settle contingent consideration liabilities recognized in business combinations | — | (16,583) | |||||||||
Issuance of common shares resulting from the exercise of stock options, employee stock purchase plan and conversion of common stock warrants | 4,829 | 10,410 | |||||||||
Common stock repurchases under authorized program | — | — | |||||||||
Common stock repurchases for tax withholdings related to stock-based compensation | — | — | |||||||||
Dividends paid | (26,452) | (24,626) | |||||||||
Net Cash Provided by Financing Activities | 87,182 | 742,832 | |||||||||
Net Increase in Cash and Cash Equivalents | 51,367 | 103,903 | |||||||||
Cash and Cash Equivalents at Beginning of Period | 411,205 | 322,474 | |||||||||
Cash and Cash Equivalents at End of Period | $ | 462,572 | $ | 426,377 |
March 31, 2022 | |||||||||||||||||||||||
(In thousands) | Amortized Cost | Gross Unrealized Gains | Gross Unrealized Losses | Fair Value | |||||||||||||||||||
Available-for-sale securities | |||||||||||||||||||||||
U.S. Treasury | $ | — | $ | — | $ | — | $ | — | |||||||||||||||
U.S. Government agencies | 50,000 | 366 | (729) | 49,637 | |||||||||||||||||||
Municipal | 157,563 | 1,019 | (3,093) | 155,489 | |||||||||||||||||||
Corporate notes: | |||||||||||||||||||||||
Financial issuers | 86,994 | 1 | (5,047) | 81,948 | |||||||||||||||||||
Other | 1,000 | — | (9) | 991 | |||||||||||||||||||
Mortgage-backed: (1) | |||||||||||||||||||||||
Mortgage-backed securities | 2,794,760 | 591 | (177,899) | 2,617,452 | |||||||||||||||||||
Collateralized mortgage obligations | 103,424 | 1 | (10,044) | 93,381 | |||||||||||||||||||
Total available-for-sale securities | $ | 3,193,741 | $ | 1,978 | $ | (196,821) | $ | 2,998,898 | |||||||||||||||
Held-to-maturity securities | |||||||||||||||||||||||
U.S. Government agencies | $ | 264,661 | $ | 35 | $ | (27,673) | $ | 237,023 | |||||||||||||||
Municipal | 180,548 | 3,176 | (1,693) | 182,031 | |||||||||||||||||||
Mortgage-backed: (1) | |||||||||||||||||||||||
Mortgage-backed securities | 2,772,622 | — | (253,254) | 2,519,368 | |||||||||||||||||||
Collateralized mortgage obligations | 174,273 | — | (6,847) | 167,426 | |||||||||||||||||||
Corporate notes | 43,784 | — | (3,205) | 40,579 | |||||||||||||||||||
Total held-to-maturity securities | $ | 3,435,888 | $ | 3,211 | $ | (292,672) | $ | 3,146,427 | |||||||||||||||
Less: Allowance for credit losses | (159) | ||||||||||||||||||||||
Held-to-maturity securities, net of allowance for credit losses | $ | 3,435,729 | |||||||||||||||||||||
Equity securities with readily determinable fair value | $ | 91,629 | $ | 5,259 | $ | (4,199) | $ | 92,689 |
December 31, 2021 | |||||||||||||||||||||||
Amortized Cost | Gross Unrealized Gains | Gross Unrealized Losses | Fair Value | ||||||||||||||||||||
(In thousands) | |||||||||||||||||||||||
Available-for-sale securities | |||||||||||||||||||||||
U.S. Treasury | $ | — | $ | — | $ | — | $ | — | |||||||||||||||
U.S. Government agencies | 50,158 | 2,349 | — | 52,507 | |||||||||||||||||||
Municipal | 161,618 | 4,193 | (217) | 165,594 | |||||||||||||||||||
Corporate notes: | |||||||||||||||||||||||
Financial issuers | 96,878 | 418 | (2,599) | 94,697 | |||||||||||||||||||
Other | 1,000 | 7 | — | 1,007 | |||||||||||||||||||
Mortgage-backed: (1) | |||||||||||||||||||||||
Mortgage-backed securities | 1,901,005 | 32,830 | (25,854) | 1,907,981 | |||||||||||||||||||
Collateralized mortgage obligations | 105,710 | 297 | — | 106,007 | |||||||||||||||||||
Total available-for-sale securities | $ | 2,316,369 | $ | 40,094 | $ | (28,670) | $ | 2,327,793 | |||||||||||||||
Held-to-maturity securities | |||||||||||||||||||||||
U.S. Government agencies | $ | 180,192 | $ | 201 | $ | (3,314) | $ | 177,079 | |||||||||||||||
Municipal | 187,486 | 9,544 | (223) | 196,807 | |||||||||||||||||||
Mortgage-backed: (1) | |||||||||||||||||||||||
Mortgage-backed securities | 2,530,730 | 864 | (47,622) | 2,483,972 | |||||||||||||||||||
Collateralized mortgage obligations | — | — | — | — | |||||||||||||||||||
Corporate notes | 43,955 | — | (1,119) | 42,836 | |||||||||||||||||||
Total held-to-maturity securities | $ | 2,942,363 | $ | 10,609 | $ | (52,278) | $ | 2,900,694 | |||||||||||||||
Less: Allowance for credit losses | (78) | ||||||||||||||||||||||
Held-to-maturity securities, net of allowance for credit losses | $ | 2,942,285 | |||||||||||||||||||||
Equity securities with readily determinable fair value | $ | 86,989 | $ | 5,354 | $ | (1,832) | $ | 90,511 |
March 31, 2021 | |||||||||||||||||||||||
Amortized Cost | Gross Unrealized Gains | Gross Unrealized Losses | Fair Value | ||||||||||||||||||||
(In thousands) | |||||||||||||||||||||||
Available-for-sale securities | |||||||||||||||||||||||
U.S. Treasury | $ | 64,999 | $ | 2 | $ | — | $ | 65,001 | |||||||||||||||
U.S. Government agencies | 77,908 | 3,618 | — | 81,526 | |||||||||||||||||||
Municipal | 143,711 | 4,761 | (172) | 148,300 | |||||||||||||||||||
Corporate notes: | |||||||||||||||||||||||
Financial issuers | 91,806 | 461 | (935) | 91,332 | |||||||||||||||||||
Other | 1,000 | 17 | — | 1,017 | |||||||||||||||||||
Mortgage-backed: (1) | |||||||||||||||||||||||
Mortgage-backed securities | 2,007,092 | 52,855 | (26,038) | 2,033,909 | |||||||||||||||||||
Collateralized mortgage obligations | 9,411 | 253 | — | 9,664 | |||||||||||||||||||
Total available-for-sale securities | $ | 2,395,927 | $ | 61,967 | $ | (27,145) | $ | 2,430,749 | |||||||||||||||
Held-to-maturity securities | |||||||||||||||||||||||
U.S. Government agencies | $ | 176,160 | $ | 1,644 | $ | (7,230) | $ | 170,574 | |||||||||||||||
Municipal | 197,865 | 10,713 | (535) | 208,043 | |||||||||||||||||||
Mortgage-backed: (1) | |||||||||||||||||||||||
Mortgage-backed securities | 1,737,115 | 265 | (49,114) | 1,688,266 | |||||||||||||||||||
Collateralized mortgage obligations | — | — | — | — | |||||||||||||||||||
Corporate Notes | 55,378 | — | (1,196) | 54,182 | |||||||||||||||||||
Total held-to-maturity securities | $ | 2,166,518 | $ | 12,622 | $ | (58,075) | $ | 2,121,065 | |||||||||||||||
Less: Allowance for credit losses | (99) | ||||||||||||||||||||||
Held-to-maturity securities, net of allowance for credit losses | $ | 2,166,419 | |||||||||||||||||||||
Equity securities with readily determinable fair value | $ | 86,121 | $ | 5,362 | $ | (1,145) | $ | 90,338 |
Continuous unrealized losses existing for less than 12 months | Continuous unrealized losses existing for greater than 12 months | Total | |||||||||||||||||||||||||||||||||
(In thousands) | Fair Value | Unrealized Losses | Fair Value | Unrealized Losses | Fair Value | Unrealized Losses | |||||||||||||||||||||||||||||
Available-for-sale securities | |||||||||||||||||||||||||||||||||||
U.S. Treasury | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | |||||||||||||||||||||||
U.S. Government agencies | 9,271 | (729) | — | — | 9,271 | (729) | |||||||||||||||||||||||||||||
Municipal | 92,896 | (2,861) | 3,553 | (232) | 96,449 | (3,093) | |||||||||||||||||||||||||||||
Corporate notes: | |||||||||||||||||||||||||||||||||||
Financial issuers | 20,814 | (1,186) | 58,133 | (3,861) | 78,947 | (5,047) | |||||||||||||||||||||||||||||
Other | 991 | (9) | — | — | 991 | (9) | |||||||||||||||||||||||||||||
Mortgage-backed: | |||||||||||||||||||||||||||||||||||
Mortgage-backed securities | 2,078,794 | (114,144) | 482,200 | (63,755) | 2,560,994 | (177,899) | |||||||||||||||||||||||||||||
Collateralized mortgage obligations | 93,256 | (10,044) | — | — | 93,256 | (10,044) | |||||||||||||||||||||||||||||
Total available-for-sale securities | $ | 2,296,022 | $ | (128,973) | $ | 543,886 | $ | (67,848) | $ | 2,839,908 | $ | (196,821) |
Three months ended March 31, | |||||||||||
(In thousands) | 2022 | 2021 | |||||||||
Realized gains on investment securities | $ | 258 | $ | 216 | |||||||
Realized losses on investment securities | (8) | (6) | |||||||||
Net realized gains on investment securities | 250 | 210 | |||||||||
Unrealized gains on equity securities with readily determinable fair value | 180 | 1,875 | |||||||||
Unrealized losses on equity securities with readily determinable fair value | (2,641) | (901) | |||||||||
Net unrealized (losses) gains on equity securities with readily determinable fair value | (2,461) | 974 | |||||||||
Upward adjustments of equity securities without readily determinable fair values | — | — | |||||||||
Downward adjustments of equity securities without readily determinable fair values | — | — | |||||||||
Impairment of equity securities without readily determinable fair values | (571) | (30) | |||||||||
Adjustment and impairment, net, of equity securities without readily determinable fair values | (571) | (30) | |||||||||
(Losses) gains on investment securities, net | $ | (2,782) | $ | 1,154 | |||||||
Proceeds from sales of available-for-sale securities(1) | $ | — | $ | — | |||||||
Proceeds from sales of equity securities with readily determinable fair value | 18,753 | 1,509 | |||||||||
Proceeds from sales and capital distributions of equity securities without readily determinable fair value | 250 | 386 |
March 31, 2022 | December 31, 2021 | March 31, 2021 | |||||||||||||||||||||||||||||||||
(In thousands) | Amortized Cost | Fair Value | Amortized Cost | Fair Value | Amortized Cost | Fair Value | |||||||||||||||||||||||||||||
Available-for-sale securities | |||||||||||||||||||||||||||||||||||
Due in one year or less | $ | 48,130 | $ | 47,945 | $ | 49,714 | $ | 49,822 | $ | 100,140 | $ | 100,361 | |||||||||||||||||||||||
Due in one to five years | 67,138 | 66,034 | 72,382 | 73,850 | 76,104 | 78,291 | |||||||||||||||||||||||||||||
Due in five to ten years | 110,960 | 105,670 | 118,358 | 117,573 | 110,125 | 110,928 | |||||||||||||||||||||||||||||
Due after ten years | 69,329 | 68,416 | 69,200 | 72,560 | 93,055 | 97,596 | |||||||||||||||||||||||||||||
Mortgage-backed | 2,898,184 | 2,710,833 | 2,006,715 | 2,013,988 | 2,016,503 | 2,043,573 | |||||||||||||||||||||||||||||
Total available-for-sale securities | $ | 3,193,741 | $ | 2,998,898 | $ | 2,316,369 | $ | 2,327,793 | $ | 2,395,927 | $ | 2,430,749 | |||||||||||||||||||||||
Held-to-maturity securities | |||||||||||||||||||||||||||||||||||
Due in one year or less | $ | 1,208 | $ | 1,213 | $ | 2,976 | $ | 2,992 | $ | 6,812 | $ | 6,863 | |||||||||||||||||||||||
Due in one to five years | 83,085 | 80,210 | 79,422 | 79,705 | 50,318 | 50,734 | |||||||||||||||||||||||||||||
Due in five to ten years | 101,410 | 102,940 | 106,713 | 112,667 | 184,677 | 191,539 | |||||||||||||||||||||||||||||
Due after ten years | 303,290 | 275,270 | 222,522 | 221,358 | 187,596 | 183,663 | |||||||||||||||||||||||||||||
Mortgage-backed | 2,946,895 | 2,686,794 | 2,530,730 | 2,483,972 | 1,737,115 | 1,688,266 | |||||||||||||||||||||||||||||
Total held-to-maturity securities | $ | 3,435,888 | $ | 3,146,427 | $ | 2,942,363 | $ | 2,900,694 | $ | 2,166,518 | $ | 2,121,065 | |||||||||||||||||||||||
Less: Allowance for credit losses | (159) | (78) | (99) | ||||||||||||||||||||||||||||||||
Held-to-maturity securities, net of allowance for credit losses | $ | 3,435,729 | $ | 2,942,285 | $ | 2,166,419 | |||||||||||||||||||||||||||||
March 31, | December 31, | March 31, | |||||||||||||||
(Dollars in thousands) | 2022 | 2021 | 2021 | ||||||||||||||
Balance: | |||||||||||||||||
Commercial | $ | 11,583,963 | $ | 11,904,068 | $ | 12,708,207 | |||||||||||
Commercial real estate | 9,235,074 | 8,990,286 | 8,544,779 | ||||||||||||||
Home equity | 321,435 | 335,155 | 390,253 | ||||||||||||||
Residential real estate | 1,799,985 | 1,637,099 | 1,421,973 | ||||||||||||||
Premium finance receivables | |||||||||||||||||
Property and casualty insurance | 4,937,408 | 4,855,487 | 3,958,543 | ||||||||||||||
Life insurance | 7,354,163 | 7,042,810 | 6,111,495 | ||||||||||||||
Consumer and other | 48,519 | 24,199 | 35,983 | ||||||||||||||
Total loans, net of unearned income | $ | 35,280,547 | $ | 34,789,104 | $ | 33,171,233 | |||||||||||
Mix: | |||||||||||||||||
Commercial | 33 | % | 34 | % | 38 | % | |||||||||||
Commercial real estate | 26 | 26 | 26 | ||||||||||||||
Home equity | 1 | 1 | 1 | ||||||||||||||
Residential real estate | 5 | 5 | 4 | ||||||||||||||
Premium finance receivables | |||||||||||||||||
Property and casualty insurance | 14 | 14 | 12 | ||||||||||||||
Life insurance | 21 | 20 | 19 | ||||||||||||||
Consumer and other | 0 | 0 | 0 | ||||||||||||||
Total loans, net of unearned income | 100 | % | 100 | % | 100 | % |
(Dollars in thousands) | Insurance Agency Loan Portfolio | |||||||
Contractually required payments (unpaid principal balance) | $ | 13,882 | ||||||
Allowance for credit losses (1) | (2,806) | |||||||
Discount, net of any premium | (214) | |||||||
Purchase price of PCD loans acquired | $ | 10,862 |
As of March 31, 2022 | 90+ days and still accruing | 60-89 days past due | 30-59 days past due | ||||||||||||||||||||||||||||||||
(In thousands) | Nonaccrual | Current | Total Loans | ||||||||||||||||||||||||||||||||
Loan Balances (includes PCD): | |||||||||||||||||||||||||||||||||||
Commercial | |||||||||||||||||||||||||||||||||||
Commercial, industrial and other, excluding PPP loans | $ | 16,878 | $ | — | $ | 1,294 | $ | 31,873 | $ | 11,279,954 | $ | 11,329,999 | |||||||||||||||||||||||
Commercial PPP loans | — | — | — | 16 | 253,948 | 253,964 | |||||||||||||||||||||||||||||
Commercial real estate | |||||||||||||||||||||||||||||||||||
Construction and development | 1,054 | — | — | 1,409 | 1,393,943 | 1,396,406 | |||||||||||||||||||||||||||||
Non-construction | 11,247 | — | 2,648 | 28,732 | 7,796,041 | 7,838,668 | |||||||||||||||||||||||||||||
Home equity | 1,747 | — | 199 | 545 | 318,944 | 321,435 | |||||||||||||||||||||||||||||
Residential real estate, excluding early buy-out loans | 7,262 | — | 293 | 18,808 | 1,723,526 | 1,749,889 | |||||||||||||||||||||||||||||
Premium finance receivables | |||||||||||||||||||||||||||||||||||
Property and casualty insurance loans | 6,707 | 12,363 | 8,890 | 21,278 | 4,888,170 | 4,937,408 | |||||||||||||||||||||||||||||
Life insurance loans | — | — | 22,401 | 15,522 | 7,316,240 | 7,354,163 | |||||||||||||||||||||||||||||
Consumer and other | 4 | 43 | 5 | 221 | 48,246 | 48,519 | |||||||||||||||||||||||||||||
Total loans, net of unearned income, excluding early buy-out loans | $ | 44,899 | $ | 12,406 | $ | 35,730 | $ | 118,404 | $ | 35,019,012 | $ | 35,230,451 | |||||||||||||||||||||||
Early buy-out loans guaranteed by U.S. government agencies (1) | 4,661 | 28,958 | — | 185 | 16,292 | 50,096 | |||||||||||||||||||||||||||||
Total loans, net of unearned income | $ | 49,560 | $ | 41,364 | $ | 35,730 | $ | 118,589 | $ | 35,035,304 | $ | 35,280,547 |
As of December 31, 2021 | 90+ days and still accruing | 60-89 days past due | 30-59 days past due | ||||||||||||||||||||||||||||||||
(In thousands) | Nonaccrual | Current | Total Loans | ||||||||||||||||||||||||||||||||
Loan Balances (includes PCD): | |||||||||||||||||||||||||||||||||||
Commercial | |||||||||||||||||||||||||||||||||||
Commercial, industrial and other, excluding PPP loans | $ | 20,399 | $ | — | $ | 23,492 | $ | 42,933 | $ | 11,258,961 | $ | 11,345,785 | |||||||||||||||||||||||
Commercial PPP loans | — | 15 | 770 | 928 | 556,570 | 558,283 | |||||||||||||||||||||||||||||
Commercial real estate | |||||||||||||||||||||||||||||||||||
Construction and development | 1,377 | — | — | 2,809 | 1,352,018 | 1,356,204 | |||||||||||||||||||||||||||||
Non-construction | 20,369 | — | 284 | 37,634 | 7,575,795 | 7,634,082 | |||||||||||||||||||||||||||||
Home equity | 2,574 | — | — | 1,120 | 331,461 | 335,155 | |||||||||||||||||||||||||||||
Residential real estate, excluding early buy-out loans | 16,440 | — | 982 | 12,145 | 1,576,704 | 1,606,271 | |||||||||||||||||||||||||||||
Premium finance receivables | |||||||||||||||||||||||||||||||||||
Property and casualty insurance loans | 5,433 | 7,210 | 15,490 | 22,419 | 4,804,935 | 4,855,487 | |||||||||||||||||||||||||||||
Life insurance loans | — | 7 | 12,614 | 66,651 | 6,963,538 | 7,042,810 | |||||||||||||||||||||||||||||
Consumer and other | 477 | 137 | 34 | 509 | 23,042 | 24,199 | |||||||||||||||||||||||||||||
Total loans, net of unearned income, excluding early buy-out loans | $ | 67,069 | $ | 7,369 | $ | 53,666 | $ | 187,148 | $ | 34,443,024 | $ | 34,758,276 | |||||||||||||||||||||||
Early buy-out loans guaranteed by U.S. government agencies (1) | — | — | — | 275 | 30,553 | 30,828 | |||||||||||||||||||||||||||||
Total loans, net of unearned income | $ | 67,069 | $ | 7,369 | $ | 53,666 | $ | 187,423 | $ | 34,473,577 | $ | 34,789,104 |
As of March 31, 2021 | 90+ days and still accruing | 60-89 days past due | 30-59 days past due | ||||||||||||||||||||||||||||||||
(In thousands) | Nonaccrual | Current | Total Loans | ||||||||||||||||||||||||||||||||
Loan Balances (includes PCD): | |||||||||||||||||||||||||||||||||||
Commercial | |||||||||||||||||||||||||||||||||||
Commercial, industrial and other, excluding PPP loans | $ | 22,459 | $ | — | $ | 13,292 | $ | 35,535 | $ | 9,343,939 | $ | 9,415,225 | |||||||||||||||||||||||
Commercial PPP loans | — | — | — | 6 | 3,292,976 | 3,292,982 | |||||||||||||||||||||||||||||
Commercial real estate | |||||||||||||||||||||||||||||||||||
Construction and development | 2,673 | — | 499 | 23,967 | 1,326,185 | 1,353,324 | |||||||||||||||||||||||||||||
Non-construction | 31,707 | — | 7,657 | 46,201 | 7,105,890 | 7,191,455 | |||||||||||||||||||||||||||||
Home equity | 5,536 | — | 492 | 780 | 383,445 | 390,253 | |||||||||||||||||||||||||||||
Residential real estate, excluding early buy-out loans | 21,553 | — | 944 | 13,768 | 1,333,867 | 1,370,132 | |||||||||||||||||||||||||||||
Premium finance receivables | |||||||||||||||||||||||||||||||||||
Property and casualty insurance loans | 9,690 | 4,592 | 5,113 | 16,552 | 3,922,596 | 3,958,543 | |||||||||||||||||||||||||||||
Life insurance loans | — | 191 | — | 14,821 | 6,096,483 | 6,111,495 | |||||||||||||||||||||||||||||
Consumer and other | 497 | 161 | 8 | 74 | 35,243 | 35,983 | |||||||||||||||||||||||||||||
Total loans, net of unearned income, excluding early buy-out loans | $ | 94,115 | $ | 4,944 | $ | 28,005 | $ | 151,704 | $ | 32,840,624 | $ | 33,119,392 | |||||||||||||||||||||||
Early buy-out loans guaranteed by U.S. government agencies (1) | — | — | — | — | 51,841 | 51,841 | |||||||||||||||||||||||||||||
Total loans, net of unearned income | $ | 94,115 | $ | 4,944 | $ | 28,005 | $ | 151,704 | $ | 32,892,465 | $ | 33,171,233 |
Year of Origination | Revolving | Total | |||||||||||||||||||||||||||||||||
(In thousands) | 2022 | 2021 | 2020 | 2019 | 2018 | Prior | Revolving | to Term | Loans | ||||||||||||||||||||||||||
Loan Balances: | |||||||||||||||||||||||||||||||||||
Commercial, industrial and other | |||||||||||||||||||||||||||||||||||
Pass | $ | 524,863 | $ | 2,714,254 | $ | 1,407,819 | $ | 889,866 | $ | 647,127 | $ | 1,037,167 | $ | 3,616,144 | $ | 8,342 | $ | 10,845,582 | |||||||||||||||||
Special mention | 34 | 77,940 | 51,807 | 61,656 | 21,183 | 48,902 | 105,022 | 228 | 366,772 | ||||||||||||||||||||||||||
Substandard accrual | — | 5,596 | 10,285 | 22,157 | 24,320 | 11,484 | 26,925 | — | 100,767 | ||||||||||||||||||||||||||
Substandard nonaccrual/doubtful | — | 54 | 3,427 | 6,474 | 1,759 | 5,092 | 72 | — | 16,878 | ||||||||||||||||||||||||||
Total commercial, industrial and other | $ | 524,897 | $ | 2,797,844 | $ | 1,473,338 | $ | 980,153 | $ | 694,389 | $ | 1,102,645 | $ | 3,748,163 | $ | 8,570 | $ | 11,329,999 | |||||||||||||||||
Commercial PPP | |||||||||||||||||||||||||||||||||||
Pass | $ | — | $ | 213,790 | $ | 33,830 | $ | — | $ | — | $ | — | $ | — | $ | — | $ | 247,620 | |||||||||||||||||
Special mention | — | 158 | 5,621 | — | — | — | — | — | 5,779 | ||||||||||||||||||||||||||
Substandard accrual | — | — | 565 | — | — | — | — | — | 565 | ||||||||||||||||||||||||||
Substandard nonaccrual/doubtful | — | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||||
Total commercial PPP | $ | — | $ | 213,948 | $ | 40,016 | $ | — | $ | — | $ | — | $ | — | $ | — | $ | 253,964 | |||||||||||||||||
Construction and development | |||||||||||||||||||||||||||||||||||
Pass | $ | 99,285 | $ | 391,288 | $ | 430,778 | $ | 231,618 | $ | 51,795 | $ | 114,022 | $ | 22,404 | $ | — | $ | 1,341,190 | |||||||||||||||||
Special mention | — | 282 | 8,475 | 3,611 | 24,748 | 110 | — | — | 37,226 | ||||||||||||||||||||||||||
Substandard accrual | — | — | — | 312 | 2,052 | 14,572 | — | — | 16,936 | ||||||||||||||||||||||||||
Substandard nonaccrual/doubtful | — | — | — | — | — | 1,054 | — | — | 1,054 | ||||||||||||||||||||||||||
Total construction and development | $ | 99,285 | $ | 391,570 | $ | 439,253 | $ | 235,541 | $ | 78,595 | $ | 129,758 | $ | 22,404 | $ | — | $ | 1,396,406 | |||||||||||||||||
Non-construction | |||||||||||||||||||||||||||||||||||
Pass | $ | 468,125 | $ | 1,563,953 | $ | 1,103,776 | $ | 962,675 | $ | 715,014 | $ | 2,500,006 | $ | 170,873 | $ | 147 | $ | 7,484,569 | |||||||||||||||||
Special mention | — | 1,842 | 9,792 | 49,110 | 36,694 | 129,238 | — | — | 226,676 | ||||||||||||||||||||||||||
Substandard accrual | — | — | 286 | 14,676 | 26,945 | 74,269 | — | — | 116,176 | ||||||||||||||||||||||||||
Substandard nonaccrual/doubtful | — | — | — | — | 270 | 10,977 | — | — | 11,247 | ||||||||||||||||||||||||||
Total non-construction | $ | 468,125 | $ | 1,565,795 | $ | 1,113,854 | $ | 1,026,461 | $ | 778,923 | $ | 2,714,490 | $ | 170,873 | $ | 147 | $ | 7,838,668 | |||||||||||||||||
Home equity | |||||||||||||||||||||||||||||||||||
Pass | $ | — | $ | — | $ | — | $ | — | $ | — | $ | 5,502 | $ | 298,765 | $ | — | $ | 304,267 | |||||||||||||||||
Special mention | — | — | — | — | 240 | 391 | 4,452 | — | 5,083 | ||||||||||||||||||||||||||
Substandard accrual | — | — | — | — | — | 9,045 | 757 | 536 | 10,338 | ||||||||||||||||||||||||||
Substandard nonaccrual/doubtful | — | — | — | 107 | 43 | 1,597 | — | — | 1,747 | ||||||||||||||||||||||||||
Total home equity | $ | — | $ | — | $ | — | $ | 107 | $ | 283 | $ | 16,535 | $ | 303,974 | $ | 536 | $ | 321,435 | |||||||||||||||||
Residential real estate | |||||||||||||||||||||||||||||||||||
Early buy-out loans guaranteed by U.S. government agencies | $ | — | $ | 241 | $ | 621 | $ | 5,920 | $ | 8,808 | $ | 34,506 | $ | — | $ | — | $ | 50,096 | |||||||||||||||||
Pass | 236,643 | 835,324 | 259,100 | 143,358 | 58,132 | 189,137 | — | — | 1,721,694 | ||||||||||||||||||||||||||
Special mention | — | 1,612 | 173 | 378 | 1,296 | 4,899 | — | — | 8,358 | ||||||||||||||||||||||||||
Substandard accrual | 263 | 1,101 | 2,184 | 716 | 904 | 7,407 | — | — | 12,575 | ||||||||||||||||||||||||||
Substandard nonaccrual/doubtful | — | — | 881 | 1,856 | 427 | 4,098 | — | — | 7,262 | ||||||||||||||||||||||||||
Total residential real estate | $ | 236,906 | $ | 838,278 | $ | 262,959 | $ | 152,228 | $ | 69,567 | $ | 240,047 | $ | — | $ | — | $ | 1,799,985 | |||||||||||||||||
Premium finance receivables - property and casualty | |||||||||||||||||||||||||||||||||||
Pass | $ | 2,451,925 | $ | 2,404,905 | $ | 19,074 | $ | 7,203 | $ | 662 | $ | — | $ | — | $ | — | $ | 4,883,769 | |||||||||||||||||
Special mention | 14,857 | 23,617 | 59 | — | — | — | — | — | 38,533 | ||||||||||||||||||||||||||
Substandard accrual | 21 | 8,336 | 27 | — | 15 | — | — | — | 8,399 | ||||||||||||||||||||||||||
Substandard nonaccrual/doubtful | 89 | 6,115 | 503 | — | — | — | — | — | 6,707 | ||||||||||||||||||||||||||
Total premium finance receivables - property and casualty | $ | 2,466,892 | $ | 2,442,973 | $ | 19,663 | $ | 7,203 | $ | 677 | $ | — | $ | — | $ | — | $ | 4,937,408 | |||||||||||||||||
Premium finance receivables - life | |||||||||||||||||||||||||||||||||||
Pass | $ | 91,374 | $ | 587,300 | $ | 908,193 | $ | 826,596 | $ | 722,851 | $ | 4,210,182 | $ | — | $ | — | $ | 7,346,496 |
Special mention | — | 595 | — | — | — | 7,072 | — | — | 7,667 | ||||||||||||||||||||||||||
Substandard accrual | — | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||||
Substandard nonaccrual/doubtful | — | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||||
Total premium finance receivables - life | $ | 91,374 | $ | 587,895 | $ | 908,193 | $ | 826,596 | $ | 722,851 | $ | 4,217,254 | $ | — | $ | — | $ | 7,354,163 | |||||||||||||||||
Consumer and other | |||||||||||||||||||||||||||||||||||
Pass | $ | 523 | $ | 2,465 | $ | 708 | $ | 990 | $ | 990 | $ | 21,159 | $ | 21,436 | $ | — | $ | 48,271 | |||||||||||||||||
Special mention | — | 3 | 2 | 8 | — | 126 | 9 | — | 148 | ||||||||||||||||||||||||||
Substandard accrual | — | 9 | 1 | — | — | 76 | 10 | — | 96 | ||||||||||||||||||||||||||
Substandard nonaccrual/doubtful | — | — | — | — | — | 4 | — | — | 4 | ||||||||||||||||||||||||||
Total consumer and other | $ | 523 | $ | 2,477 | $ | 711 | $ | 998 | $ | 990 | $ | 21,365 | $ | 21,455 | $ | — | $ | 48,519 | |||||||||||||||||
Total loans | |||||||||||||||||||||||||||||||||||
Early buy-out loans guaranteed by U.S. government agencies | $ | — | $ | 241 | $ | 621 | $ | 5,920 | $ | 8,808 | $ | 34,506 | $ | — | $ | — | $ | 50,096 | |||||||||||||||||
Pass | 3,872,738 | 8,713,279 | 4,163,278 | 3,062,306 | 2,196,571 | 8,077,175 | 4,129,622 | 8,489 | 34,223,458 | ||||||||||||||||||||||||||
Special mention | 14,891 | 106,049 | 75,929 | 114,763 | 84,161 | 190,738 | 109,483 | 228 | 696,242 | ||||||||||||||||||||||||||
Substandard accrual | 284 | 15,042 | 13,348 | 37,861 | 54,236 | 116,853 | 27,692 | 536 | 265,852 | ||||||||||||||||||||||||||
Substandard nonaccrual/doubtful | 89 | 6,169 | 4,811 | 8,437 | 2,499 | 22,822 | 72 | — | 44,899 | ||||||||||||||||||||||||||
Total loans | $ | 3,888,002 | $ | 8,840,780 | $ | 4,257,987 | $ | 3,229,287 | $ | 2,346,275 | $ | 8,442,094 | $ | 4,266,869 | $ | 9,253 | $ | 35,280,547 |
As of March 31, 2022 | Year of Origination | Total | ||||||||||||||||||||||||
(In thousands) | 2022 | 2021 | 2020 | 2019 | 2018 | Prior | Balance | |||||||||||||||||||
Amortized Cost Balances: | ||||||||||||||||||||||||||
U.S. government agencies | ||||||||||||||||||||||||||
1-4 internal grade | $ | 85,000 | $ | 147,795 | $ | 25,000 | $ | 4,032 | $ | — | $ | 2,834 | $ | 264,661 | ||||||||||||
5-7 internal grade | — | — | — | — | — | — | — | |||||||||||||||||||
8-10 internal grade | — | — | — | — | — | — | — | |||||||||||||||||||
Total U.S. government agencies | $ | 85,000 | $ | 147,795 | $ | 25,000 | $ | 4,032 | $ | — | $ | 2,834 | $ | 264,661 | ||||||||||||
Municipal | ||||||||||||||||||||||||||
1-4 internal grade | $ | — | $ | 7,067 | $ | 300 | $ | 160 | $ | 7,465 | $ | 165,556 | $ | 180,548 | ||||||||||||
5-7 internal grade | — | — | — | — | — | — | — | |||||||||||||||||||
8-10 internal grade | — | — | — | — | — | — | — | |||||||||||||||||||
Total municipal | $ | — | $ | 7,067 | $ | 300 | $ | 160 | $ | 7,465 | $ | 165,556 | $ | 180,548 | ||||||||||||
Mortgage-backed securities | ||||||||||||||||||||||||||
1-4 internal grade | $ | 379,444 | $ | 2,567,451 | $ | — | $ | — | $ | — | $ | — | $ | 2,946,895 | ||||||||||||
5-7 internal grade | — | — | — | — | — | — | — | |||||||||||||||||||
8-10 internal grade | — | — | — | — | — | — | — | |||||||||||||||||||
Total mortgage-backed securities | $ | 379,444 | $ | 2,567,451 | $ | — | $ | — | $ | — | $ | — | $ | 2,946,895 | ||||||||||||
Corporate notes | ||||||||||||||||||||||||||
1-4 internal grade | $ | — | $ | — | $ | 6,012 | $ | 7,377 | $ | 3,244 | $ | 27,151 | $ | 43,784 | ||||||||||||
5-7 internal grade | — | — | — | — | — | — | — | |||||||||||||||||||
8-10 internal grade | — | — | — | — | — | — | — | |||||||||||||||||||
Total corporate notes | $ | — | $ | — | $ | 6,012 | $ | 7,377 | $ | 3,244 | $ | 27,151 | $ | 43,784 | ||||||||||||
Total held-to-maturity securities | $ | 3,435,888 | ||||||||||||||||||||||||
Less: Allowance for credit losses | (159) | |||||||||||||||||||||||||
Held-to-maturity securities, net of allowance for credit losses | $ | 3,435,729 |
March 31, | December 31, | March 31, | ||||||||||||||||||
(In thousands) | 2022 | 2021 | 2021 | |||||||||||||||||
Allowance for loan losses | $ | 250,539 | $ | 247,835 | $ | 277,709 | ||||||||||||||
Allowance for unfunded lending-related commitments losses | 50,629 | 51,818 | 43,500 | |||||||||||||||||
Allowance for loan losses and unfunded lending-related commitments losses | 301,168 | 299,653 | 321,209 | |||||||||||||||||
Allowance for held-to-maturity securities losses | 159 | 78 | 99 | |||||||||||||||||
Allowance for credit losses | $ | 301,327 | $ | 299,731 | $ | 321,308 |
Three months ended March 31, 2022 | Commercial Real Estate | Home Equity | Residential Real Estate | Premium Finance Receivables | Consumer and Other | Total Loans | |||||||||||||||||||||||||||||||||||
(In thousands) | Commercial | ||||||||||||||||||||||||||||||||||||||||
Allowance for credit losses at beginning of period | $ | 119,307 | $ | 144,583 | $ | 10,699 | $ | 8,782 | $ | 15,859 | $ | 423 | $ | 299,653 | |||||||||||||||||||||||||||
Other adjustments | — | — | — | — | 22 | — | 22 | ||||||||||||||||||||||||||||||||||
Charge-offs | (1,414) | (777) | (197) | (466) | (1,678) | (193) | (4,725) | ||||||||||||||||||||||||||||||||||
Recoveries | 538 | 32 | 93 | 5 | 1,476 | 49 | 2,193 | ||||||||||||||||||||||||||||||||||
Provision for credit losses | 2,480 | 1,068 | (29) | 1,108 | (957) | 355 | 4,025 | ||||||||||||||||||||||||||||||||||
Allowance for credit losses at period end | $ | 120,911 | $ | 144,906 | $ | 10,566 | $ | 9,429 | $ | 14,722 | $ | 634 | $ | 301,168 | |||||||||||||||||||||||||||
By measurement method: | |||||||||||||||||||||||||||||||||||||||||
Individually measured | $ | 3,698 | $ | 522 | $ | 127 | $ | 800 | $ | — | $ | 5 | $ | 5,152 | |||||||||||||||||||||||||||
Collectively measured | 117,213 | 144,384 | 10,439 | 8,629 | 14,722 | 629 | 296,016 | ||||||||||||||||||||||||||||||||||
Loans at period end | |||||||||||||||||||||||||||||||||||||||||
Individually measured | $ | 19,651 | $ | 22,370 | $ | 12,904 | $ | 17,842 | $ | — | $ | 79 | $ | 72,846 | |||||||||||||||||||||||||||
Collectively measured | 11,564,312 | 9,212,704 | 308,531 | 1,724,159 | 12,291,571 | 48,440 | 35,149,717 | ||||||||||||||||||||||||||||||||||
Loans held at fair value | — | — | — | 57,984 | — | — | 57,984 |
Three months ended March 31, 2021 | Commercial | Commercial Real Estate | Home Equity | Residential Real Estate | Premium Finance Receivables | Consumer and Other | Total Loans | ||||||||||||||||||||||||||||||||||
(In thousands) | |||||||||||||||||||||||||||||||||||||||||
Allowance for credit losses at beginning of period | $ | 94,212 | $ | 243,603 | $ | 11,437 | $ | 12,459 | $ | 17,777 | $ | 422 | $ | 379,910 | |||||||||||||||||||||||||||
Other adjustments | — | — | — | — | 30 | — | 30 | ||||||||||||||||||||||||||||||||||
Charge-offs | (11,781) | (980) | — | (2) | (3,239) | (114) | (16,116) | ||||||||||||||||||||||||||||||||||
Recoveries | 452 | 200 | 101 | 204 | 1,782 | 32 | 2,771 | ||||||||||||||||||||||||||||||||||
Provision for credit losses | 12,757 | (61,031) | (156) | 1,581 | 1,127 | 336 | (45,386) | ||||||||||||||||||||||||||||||||||
Allowance for credit losses at period end | $ | 95,640 | $ | 181,792 | $ | 11,382 | $ | 14,242 | $ | 17,477 | $ | 676 | $ | 321,209 | |||||||||||||||||||||||||||
By measurement method: | |||||||||||||||||||||||||||||||||||||||||
Individually measured | $ | 5,046 | $ | 2,042 | $ | 338 | $ | 822 | $ | — | $ | 81 | $ | 8,329 | |||||||||||||||||||||||||||
Collectively measured | 90,594 | 179,750 | 11,044 | 13,420 | 17,477 | 595 | 312,880 | ||||||||||||||||||||||||||||||||||
Loans at period end | |||||||||||||||||||||||||||||||||||||||||
Individually measured | $ | 30,144 | $ | 43,858 | $ | 21,167 | $ | 28,675 | $ | — | $ | 560 | $ | 124,404 | |||||||||||||||||||||||||||
Collectively measured | 12,678,063 | 8,500,921 | 369,086 | 1,341,382 | 10,070,038 | 35,423 | 32,994,913 | ||||||||||||||||||||||||||||||||||
Loans held at fair value | — | — | — | 51,916 | — | — | 51,916 |
Three months ended March 31, 2022 (Dollars in thousands) | Total (1)(2) | Extension at Below Market Terms (2) | Reduction of Interest Rate (2) | Modification to Interest-only Payments (2) | Forgiveness of Debt(2) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Count | Balance | Count | Balance | Count | Balance | Count | Balance | Count | Balance | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Commercial | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Commercial, industrial and other | 3 | $ | 282 | 2 | $ | 120 | 1 | $ | 85 | 2 | $ | 247 | — | $ | — | |||||||||||||||||||||||||||||||||||||||||||||||
Commercial real estate | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Non-construction | 2 | 1,907 | 1 | 1,178 | 1 | 1,178 | 2 | 1,907 | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Residential real estate and other | 8 | 908 | 8 | 908 | 7 | 762 | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Total loans | 13 | $ | 3,097 | 11 | $ | 2,206 | 9 | $ | 2,025 | 4 | $ | 2,154 | — | $ | — |
Three months ended March 31, 2021 (Dollars in thousands) | Total (1)(2) | Extension at Below Market Terms (2) | Reduction of Interest Rate (2) | Modification to Interest-only Payments (2) | Forgiveness of Debt(2) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Count | Balance | Count | Balance | Count | Balance | Count | Balance | Count | Balance | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Commercial | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Commercial, industrial and other | 2 | $ | 151 | 2 | $ | 151 | — | $ | — | — | $ | — | — | $ | — | |||||||||||||||||||||||||||||||||||||||||||||||
Commercial real estate | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Non-construction | 2 | 237 | 2 | 237 | 1 | 113 | 1 | 113 | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Residential real estate and other | 16 | 1,738 | 16 | 1,738 | 9 | 1,290 | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Total loans | 20 | $ | 2,126 | 20 | $ | 2,126 | 10 | $ | 1,403 | 1 | $ | 113 | — | $ | — |
(Dollars in thousands) | As of March 31, 2022 | Three Months Ended March 31, 2022 | As of March 31, 2021 | Three months ended March 31, 2021 | |||||||||||||||||||||||||||||||||||||||||||
Total (1)(3) | Payments in Default (2)(3) | Total (1)(3) | Payments in Default (2)(3) | ||||||||||||||||||||||||||||||||||||||||||||
Count | Balance | Count | Balance | Count | Balance | Count | Balance | ||||||||||||||||||||||||||||||||||||||||
Commercial | |||||||||||||||||||||||||||||||||||||||||||||||
Commercial, industrial and other | 17 | $ | 5,205 | 11 | $ | 4,526 | 18 | $ | 6,910 | 5 | $ | 1,496 | |||||||||||||||||||||||||||||||||||
Commercial real estate | |||||||||||||||||||||||||||||||||||||||||||||||
Non-construction | 5 | 4,613 | 2 | 2,163 | 7 | 3,466 | 3 | 3,121 | |||||||||||||||||||||||||||||||||||||||
Residential real estate and other | 35 | 5,021 | 1 | 104 | 81 | 13,825 | 5 | 596 | |||||||||||||||||||||||||||||||||||||||
Total loans | 57 | $ | 14,839 | 14 | $ | 6,793 | 106 | $ | 24,201 | 13 | $ | 5,213 |
(In thousands) | December 31, 2021 | Goodwill Acquired | Impairment Loss | Goodwill Adjustments | March 31, 2022 | ||||||||||||||||||||||||
Community banking | $ | 545,671 | $ | — | $ | — | $ | — | $ | 545,671 | |||||||||||||||||||
Specialty finance | 40,105 | — | — | 253 | 40,358 | ||||||||||||||||||||||||
Wealth management | 69,373 | — | — | — | 69,373 | ||||||||||||||||||||||||
Total | $ | 655,149 | $ | — | $ | — | $ | 253 | $ | 655,402 |
(In thousands) | March 31, 2022 | December 31, 2021 | March 31, 2021 | ||||||||||||||
Community banking segment: | |||||||||||||||||
Core deposit intangibles with finite lives: | |||||||||||||||||
Gross carrying amount | $ | 55,206 | $ | 55,206 | $ | 55,206 | |||||||||||
Accumulated amortization | (39,243) | (38,067) | (34,099) | ||||||||||||||
Net carrying amount | $ | 15,963 | $ | 17,139 | $ | 21,107 | |||||||||||
Trademark with indefinite lives: | |||||||||||||||||
Carrying amount | 5,800 | 5,800 | 5,800 | ||||||||||||||
Total net carrying amount | $ | 21,763 | $ | 22,939 | $ | 26,907 | |||||||||||
Specialty finance segment: | |||||||||||||||||
Customer list intangibles with finite lives: | |||||||||||||||||
Gross carrying amount | $ | 1,968 | $ | 1,967 | $ | 1,968 | |||||||||||
Accumulated amortization | (1,738) | (1,721) | (1,665) | ||||||||||||||
Net carrying amount | $ | 230 | $ | 246 | $ | 303 | |||||||||||
Wealth management segment: | |||||||||||||||||
Customer list and other intangibles with finite lives: | |||||||||||||||||
Gross carrying amount | $ | 20,430 | $ | 20,430 | $ | 20,430 | |||||||||||
Accumulated amortization | (15,724) | (15,308) | (13,605) | ||||||||||||||
Net carrying amount | $ | 4,706 | $ | 5,122 | $ | 6,825 | |||||||||||
Total acquisition-related intangible assets: | |||||||||||||||||
Gross carrying amount | $ | 83,404 | $ | 83,403 | $ | 83,404 | |||||||||||
Accumulated amortization | (56,705) | (55,096) | (49,369) | ||||||||||||||
Total other acquisition-related intangible assets, net | $ | 26,699 | $ | 28,307 | $ | 34,035 |
Estimated amortization | |||||
Actual in three months ended March 31, 2022 | $ | 1,609 | |||
Estimated remaining in 2022 | 4,502 | ||||
Estimated—2023 | 4,658 | ||||
Estimated—2024 | 3,259 | ||||
Estimated—2025 | 2,552 | ||||
Estimated—2026 | 1,954 |
Three Months Ended | ||||||||||||||
March 31, | March 31, | |||||||||||||
(In thousands) | 2022 | 2021 | ||||||||||||
Balance at beginning of the period | $ | 147,571 | $ | 92,081 | ||||||||||
Additions from loans sold with servicing retained | 14,401 | 24,616 | ||||||||||||
Estimate of changes in fair value due to: | ||||||||||||||
Early buyout options (“EBO”) exercised | (175) | (258) | ||||||||||||
Payoffs and paydowns | (6,016) | (10,168) | ||||||||||||
Changes in valuation inputs or assumptions | 43,365 | 18,045 | ||||||||||||
Fair value at end of the period | $ | 199,146 | $ | 124,316 | ||||||||||
Unpaid principal balance of mortgage loans serviced for others | $ | 13,426,535 | $ | 11,530,676 |
(Dollars in thousands) | March 31, 2022 | December 31, 2021 | March 31, 2021 | ||||||||||||||
Balance: | |||||||||||||||||
Non-interest-bearing | $ | 13,748,918 | $ | 14,179,980 | $ | 12,297,337 | |||||||||||
NOW and interest-bearing demand deposits | 4,571,484 | 4,158,871 | 3,562,312 | ||||||||||||||
Wealth management deposits | 5,402,271 | 4,491,795 | 4,274,527 | ||||||||||||||
Money market | 10,671,424 | 11,449,469 | 9,236,434 | ||||||||||||||
Savings | 4,089,230 | 3,846,681 | 3,690,892 | ||||||||||||||
Time certificates of deposit | 3,735,995 | 3,968,789 | 4,811,150 | ||||||||||||||
Total deposits | $ | 42,219,322 | $ | 42,095,585 | $ | 37,872,652 | |||||||||||
Mix: | |||||||||||||||||
Non-interest-bearing | 32 | % | 34 | % | 32 | % | |||||||||||
NOW and interest-bearing demand deposits | 11 | 10 | 9 | ||||||||||||||
Wealth management deposits | 13 | 11 | 11 | ||||||||||||||
Money market | 25 | 27 | 25 | ||||||||||||||
Savings | 10 | 9 | 10 | ||||||||||||||
Time certificates of deposit | 9 | 9 | 13 | ||||||||||||||
Total deposits | 100 | % | 100 | % | 100 | % |
(In thousands) | March 31, 2022 | December 31, 2021 | March 31, 2021 | ||||||||||||||
FHLB advances | $ | 1,241,071 | $ | 1,241,071 | $ | 1,228,436 | |||||||||||
Other borrowings: | |||||||||||||||||
Notes payable | 74,969 | 80,319 | 96,363 | ||||||||||||||
Short-term borrowings | 15,872 | 9,198 | 12,416 | ||||||||||||||
Secured borrowings | 328,889 | 341,327 | 343,439 | ||||||||||||||
Other | 62,786 | 63,292 | 64,659 | ||||||||||||||
Total other borrowings | 482,516 | 494,136 | 516,877 | ||||||||||||||
Subordinated notes | 437,033 | 436,938 | 436,595 | ||||||||||||||
Total FHLB advances, other borrowings and subordinated notes | $ | 2,160,620 | $ | 2,172,145 | $ | 2,181,908 |
(In thousands) | Overnight Sweep Collateral | |||||||
Available-for-sale securities pledged | ||||||||
U.S. Government agencies | $ | 10,091 | ||||||
Mortgage-backed securities | 37,267 | |||||||
Total collateral pledged | 47,358 | |||||||
Excess collateral | 31,486 | |||||||
Securities sold under repurchase agreements | $ | 15,872 |
(Dollars in thousands) | Common Securities | Trust Preferred Securities | Junior Subordinated Debentures | Rate Structure | Contractual Rate at 3/31/2022 | Issue Date | Maturity Date | Earliest Redemption Date | |||||||||||||||||||||||||||||||||||||||
Wintrust Capital Trust III | $ | 774 | $ | 25,000 | $ | 25,774 | L+3.25 | 3.49 | % | 04/2003 | 04/2033 | 04/2008 | |||||||||||||||||||||||||||||||||||
Wintrust Statutory Trust IV | 619 | 20,000 | 20,619 | L+2.80 | 3.81 | % | 12/2003 | 12/2033 | 12/2008 | ||||||||||||||||||||||||||||||||||||||
Wintrust Statutory Trust V | 1,238 | 40,000 | 41,238 | L+2.60 | 3.61 | % | 05/2004 | 05/2034 | 06/2009 | ||||||||||||||||||||||||||||||||||||||
Wintrust Capital Trust VII | 1,550 | 50,000 | 51,550 | L+1.95 | 2.78 | % | 12/2004 | 03/2035 | 03/2010 | ||||||||||||||||||||||||||||||||||||||
Wintrust Capital Trust VIII | 1,238 | 25,000 | 26,238 | L+1.45 | 2.46 | % | 08/2005 | 09/2035 | 09/2010 | ||||||||||||||||||||||||||||||||||||||
Wintrust Capital Trust IX | 1,547 | 50,000 | 51,547 | L+1.63 | 2.46 | % | 09/2006 | 09/2036 | 09/2011 | ||||||||||||||||||||||||||||||||||||||
Northview Capital Trust I | 186 | 6,000 | 6,186 | L+3.00 | 3.32 | % | 08/2003 | 11/2033 | 08/2008 | ||||||||||||||||||||||||||||||||||||||
Town Bankshares Capital Trust I | 186 | 6,000 | 6,186 | L+3.00 | 3.32 | % | 08/2003 | 11/2033 | 08/2008 | ||||||||||||||||||||||||||||||||||||||
First Northwest Capital Trust I | 155 | 5,000 | 5,155 | L+3.00 | 4.01 | % | 05/2004 | 05/2034 | 05/2009 | ||||||||||||||||||||||||||||||||||||||
Suburban Illinois Capital Trust II | 464 | 15,000 | 15,464 | L+1.75 | 2.58 | % | 12/2006 | 12/2036 | 12/2011 | ||||||||||||||||||||||||||||||||||||||
Community Financial Shares Statutory Trust II | 109 | 3,500 | 3,609 | L+1.62 | 2.45 | % | 06/2007 | 09/2037 | 06/2012 | ||||||||||||||||||||||||||||||||||||||
Total | $ | 253,566 | 3.00 | % |
(Dollars in thousands) | Three Months Ended | ||||||||||||||||
Revenue from contracts with customers | Location in income statement | March 31, 2022 | March 31, 2021 | ||||||||||||||
Brokerage and insurance product commissions | Wealth management | $ | 4,632 | $ | 5,040 | ||||||||||||
Trust | Wealth management | 5,599 | 5,017 | ||||||||||||||
Asset management | Wealth management | 21,163 | 19,252 | ||||||||||||||
Total wealth management | 31,394 | 29,309 | |||||||||||||||
Mortgage broker fees | Mortgage banking | 422 | 76 | ||||||||||||||
Service charges on deposit accounts | Service charges on deposit accounts | 15,283 | 12,036 | ||||||||||||||
Administrative services | Other non-interest income | 1,853 | 1,256 | ||||||||||||||
Card related fees | Other non-interest income | 2,425 | 1,774 | ||||||||||||||
Other deposit related fees | Other non-interest income | 3,175 | 3,317 | ||||||||||||||
Total revenue from contracts with customers | $ | 54,552 | $ | 47,768 |
(Dollars in thousands) | March 31, 2022 | December 31, 2021 | March 31, 2021 | ||||||||||||||
Contract assets | $ | — | $ | — | $ | — | |||||||||||
Contract liabilities | $ | 1,488 | $ | 1,588 | $ | 1,818 | |||||||||||
Mortgage broker fees receivable | $ | 97 | $ | 73 | $ | 31 | |||||||||||
Administrative services receivable | 207 | 68 | 215 | ||||||||||||||
Wealth management receivable | 11,827 | 11,748 | 11,315 | ||||||||||||||
Card related fees receivable | 525 | 921 | 1,075 | ||||||||||||||
Total receivables from contracts with customer | $ | 12,656 | $ | 12,810 | $ | 12,636 |
(Dollars in thousands) | |||||
Estimated remaining in 2022 | $ | 738 | |||
Estimated—2023 | 400 | ||||
Estimated—2024 | 250 | ||||
Estimated—2025 | 100 | ||||
Estimated—2026 | — | ||||
Total | $ | 1,488 |
Three Months Ended | $ Change in Contribution | % Change in Contribution | |||||||||||||||||||||
(Dollars in thousands) | March 31, 2022 | March 31, 2021 | |||||||||||||||||||||
Net interest income: | |||||||||||||||||||||||
Community Banking | $ | 228,615 | $ | 203,489 | $ | 25,126 | 12 | % | |||||||||||||||
Specialty Finance | 55,370 | 44,899 | 10,471 | 23 | |||||||||||||||||||
Wealth Management | 8,376 | 7,449 | 927 | 12 | |||||||||||||||||||
Total Operating Segments | 292,361 | 255,837 | 36,524 | 14 | |||||||||||||||||||
Intersegment Eliminations | 6,933 | 6,058 | 875 | 14 | |||||||||||||||||||
Consolidated net interest income | $ | 299,294 | $ | 261,895 | $ | 37,399 | 14 | % | |||||||||||||||
Provision for credit losses: | |||||||||||||||||||||||
Community Banking | $ | 4,118 | $ | (46,572) | $ | 50,690 | NM | ||||||||||||||||
Specialty Finance | (12) | 1,225 | (1,237) | NM | |||||||||||||||||||
Wealth Management | — | — | — | — | % | ||||||||||||||||||
Total Operating Segments | 4,106 | (45,347) | 49,453 | NM | |||||||||||||||||||
Intersegment Eliminations | — | — | — | — | |||||||||||||||||||
Consolidated provision for credit losses | $ | 4,106 | $ | (45,347) | $ | 49,453 | NM | ||||||||||||||||
Non-interest income: | |||||||||||||||||||||||
Community Banking | $ | 121,888 | $ | 147,268 | $ | (25,380) | (17) | % | |||||||||||||||
Specialty Finance | 24,122 | 23,109 | 1,013 | 4 | |||||||||||||||||||
Wealth Management | 30,578 | 30,251 | 327 | 1 | |||||||||||||||||||
Total Operating Segments | 176,588 | 200,628 | (24,040) | (12) | |||||||||||||||||||
Intersegment Eliminations | (13,798) | (14,122) | 324 | (2) | |||||||||||||||||||
Consolidated non-interest income | $ | 162,790 | $ | 186,506 | $ | (23,716) | (13) | % | |||||||||||||||
Net revenue: | |||||||||||||||||||||||
Community Banking | $ | 350,503 | $ | 350,757 | $ | (254) | 0 | % | |||||||||||||||
Specialty Finance | 79,492 | 68,008 | 11,484 | 17 | |||||||||||||||||||
Wealth Management | 38,954 | 37,700 | 1,254 | 3 | |||||||||||||||||||
Total Operating Segments | 468,949 | 456,465 | 12,484 | 3 | |||||||||||||||||||
Intersegment Eliminations | (6,865) | (8,064) | 1,199 | (15) | |||||||||||||||||||
Consolidated net revenue | $ | 462,084 | $ | 448,401 | $ | 13,683 | 3 | % | |||||||||||||||
Segment profit: | |||||||||||||||||||||||
Community Banking | $ | 90,099 | $ | 121,801 | $ | (31,702) | (26) | % | |||||||||||||||
Specialty Finance | 29,604 | 23,903 | 5,701 | 24 | |||||||||||||||||||
Wealth Management | 7,688 | 7,444 | 244 | 3 | |||||||||||||||||||
Consolidated net income | $ | 127,391 | $ | 153,148 | $ | (25,757) | (17) | % | |||||||||||||||
Segment assets: | |||||||||||||||||||||||
Community Banking | $ | 40,050,015 | $ | 37,102,603 | $ | 2,947,412 | 8 | % | |||||||||||||||
Specialty Finance | 8,624,501 | 7,174,269 | 1,450,232 | 20 | |||||||||||||||||||
Wealth Management | 1,576,145 | 1,405,330 | 170,815 | 12 | |||||||||||||||||||
Consolidated total assets | $ | 50,250,661 | $ | 45,682,202 | $ | 4,568,459 | 10 | % |
Derivative Assets | Derivative Liabilities | ||||||||||||||||||||||||||||||||||
(In thousands) | March 31, 2022 | December 31, 2021 | March 31, 2021 | March 31, 2022 | December 31, 2021 | March 31, 2021 | |||||||||||||||||||||||||||||
Derivatives designated as hedging instruments under ASC 815: | |||||||||||||||||||||||||||||||||||
Interest rate derivatives designated as Cash Flow Hedges | $ | 13,257 | $ | 47,309 | $ | 50,420 | $ | 3,361 | $ | 10,401 | $ | 31,161 | |||||||||||||||||||||||
Interest rate derivatives designated as Fair Value Hedges | 7,388 | 1,474 | 121 | 1,716 | 5,841 | 9,569 | |||||||||||||||||||||||||||||
Total derivatives designated as hedging instruments under ASC 815 | $ | 20,645 | $ | 48,783 | $ | 50,541 | $ | 5,077 | $ | 16,242 | $ | 40,730 | |||||||||||||||||||||||
Derivatives not designated as hedging instruments under ASC 815: | |||||||||||||||||||||||||||||||||||
Interest rate derivatives | $ | 119,056 | $ | 103,710 | $ | 155,695 | $ | 115,002 | $ | 103,665 | $ | 155,361 | |||||||||||||||||||||||
Interest rate lock commitments | 3,447 | 10,560 | 44,313 | 1,558 | 885 | 1,342 | |||||||||||||||||||||||||||||
Forward commitments to sell mortgage loans | 10,063 | 1,625 | 2,920 | 147 | 1,878 | 3,283 | |||||||||||||||||||||||||||||
Foreign exchange contracts | 323 | 330 | 40 | 323 | 330 | 42 | |||||||||||||||||||||||||||||
Total derivatives not designated as hedging instruments under ASC 815 | $ | 132,889 | $ | 116,225 | $ | 202,968 | $ | 117,030 | $ | 106,758 | $ | 160,028 | |||||||||||||||||||||||
Total Derivatives | $ | 153,534 | $ | 165,008 | $ | 253,509 | $ | 122,107 | $ | 123,000 | $ | 200,758 |
March 31, 2022 | |||||||||||
(In thousands) | Notional | Fair Value | |||||||||
Maturity Date | Amount | Asset (Liability) | |||||||||
Interest Rate Swaps: | |||||||||||
May 2022 | $ | 370,000 | $ | (643) | |||||||
June 2022 | 160,000 | (450) | |||||||||
July 2022 | 230,000 | (716) | |||||||||
August 2022 | 235,000 | (857) | |||||||||
March 2023 (1) | 250,000 | 3,454 | |||||||||
April 2024 (1) | 250,000 | 9,804 | |||||||||
Interest Rate Collars: | |||||||||||
September 2023 | 75,000 | (696) | |||||||||
Total Cash Flow Hedges | $ | 1,570,000 | $ | 9,896 |
Three Months Ended | |||||||||||
(In thousands) | March 31, 2022 | March 31, 2021 | |||||||||
Unrealized gain (loss) at beginning of period | $ | 36,908 | $ | (31,533) | |||||||
Amount reclassified from accumulated other comprehensive income to interest expense on deposits, other borrowings and junior subordinated debentures | 5,353 | 6,696 | |||||||||
Amount of income recognized in other comprehensive income | 34,128 | 44,096 | |||||||||
Unrealized gain at end of period | $ | 76,389 | $ | 19,259 |
March 31, 2022 | |||||||||||||||||||||||
(In thousands) Derivatives in Fair Value Hedging Relationships | Location in the Statement of Condition | Carrying Amount of the Hedged Assets/(Liabilities) | Cumulative Amount of Fair Value Hedging Adjustment Included in the Carrying Amount of the Hedged Assets/(Liabilities) | Cumulative Amount of Fair Value Hedging Adjustment Remaining for any Hedged Assets/(Liabilities) for which Hedge Accounting has been Discontinued | |||||||||||||||||||
Interest rate swaps | Loans, net of unearned income | $ | 131,138 | $ | (5,664) | $ | (125) | ||||||||||||||||
Available-for-sale debt securities | 1,070 | 24 | — |
(In thousands) Derivatives in Fair Value Hedging Relationships | Location of (Loss)/Gain Recognized in Income on Derivative | Three Months Ended | |||||||||
March 31, 2022 | |||||||||||
Interest rate swaps | Interest and fees on loans | $ | 16 | ||||||||
Interest income - investment securities | — |
(In thousands) | Three Months Ended | ||||||||||||||||
Derivative | Location in income statement | March 31, 2022 | March 31, 2021 | ||||||||||||||
Interest rate swaps and caps | Trading gains, net | $ | 4,024 | $ | 428 | ||||||||||||
Mortgage banking derivatives | Mortgage banking revenue | (7,369) | (17,479) | ||||||||||||||
Foreign exchange contracts | Trading gains, net | — | (5) | ||||||||||||||
Covered call options | Fees from covered call options | 3,742 | — | ||||||||||||||
Derivative Assets | Derivative Liabilities | ||||||||||||||||||||||||||||||||||
Fair Value | Fair Value | ||||||||||||||||||||||||||||||||||
(In thousands) | March 31, 2022 | December 31, 2021 | March 31, 2021 | March 31, 2022 | December 31, 2021 | March 31, 2021 | |||||||||||||||||||||||||||||
Gross Amounts Recognized | $ | 139,701 | $ | 152,493 | $ | 206,236 | $ | 120,079 | $ | 119,907 | $ | 196,091 | |||||||||||||||||||||||
Less: Amounts offset in the Statements of Condition | — | — | — | — | — | — | |||||||||||||||||||||||||||||
Net amount presented in the Statements of Condition | $ | 139,701 | $ | 152,493 | $ | 206,236 | $ | 120,079 | $ | 119,907 | $ | 196,091 | |||||||||||||||||||||||
Gross amounts not offset in the Statements of Condition | |||||||||||||||||||||||||||||||||||
Offsetting Derivative Positions | (19,557) | (52,832) | (60,593) | (19,557) | (52,832) | (60,593) | |||||||||||||||||||||||||||||
Collateral Posted | (70,807) | (3,530) | — | (257) | (55,201) | (125,818) | |||||||||||||||||||||||||||||
Net Credit Exposure | $ | 49,337 | $ | 96,131 | $ | 145,643 | $ | 100,265 | $ | 11,874 | $ | 9,680 |
March 31, 2022 | |||||||||||||||||||||||
(In thousands) | Total | Level 1 | Level 2 | Level 3 | |||||||||||||||||||
Available-for-sale securities | |||||||||||||||||||||||
U.S. Treasury | $ | — | $ | — | $ | — | $ | — | |||||||||||||||
U.S. Government agencies | 49,637 | — | 49,637 | — | |||||||||||||||||||
Municipal | 155,489 | — | 55,088 | 100,401 | |||||||||||||||||||
Corporate notes | 82,939 | — | 82,939 | — | |||||||||||||||||||
Mortgage-backed | 2,710,833 | — | 2,710,833 | — | |||||||||||||||||||
Trading account securities | 852 | — | 852 | — | |||||||||||||||||||
Equity securities with readily determinable fair value | 92,689 | 84,623 | 8,066 | — | |||||||||||||||||||
Mortgage loans held-for-sale | 606,545 | — | 606,545 | — | |||||||||||||||||||
Loans held-for-investment | 57,984 | — | 13,520 | 44,464 | |||||||||||||||||||
MSRs | 199,146 | — | — | 199,146 | |||||||||||||||||||
Nonqualified deferred compensation assets | 15,447 | — | 15,447 | — | |||||||||||||||||||
Derivative assets | 153,534 | — | 150,087 | 3,447 | |||||||||||||||||||
Total | $ | 4,125,095 | $ | 84,623 | $ | 3,693,014 | $ | 347,458 | |||||||||||||||
Derivative liabilities | $ | 122,107 | $ | — | $ | 122,107 | $ | — |
December 31, 2021 | ||||||||||||||||||||||||||
(In thousands) | Total | Level 1 | Level 2 | Level 3 | ||||||||||||||||||||||
Available-for-sale securities | ||||||||||||||||||||||||||
U.S. Treasury | $ | — | $ | — | $ | — | $ | — | ||||||||||||||||||
U.S. Government agencies | 52,507 | — | 52,507 | — | ||||||||||||||||||||||
Municipal | 165,594 | — | 59,907 | 105,687 | ||||||||||||||||||||||
Corporate notes | 95,704 | — | 95,704 | — | ||||||||||||||||||||||
Mortgage-backed | 2,013,988 | — | 2,013,988 | — | ||||||||||||||||||||||
Trading account securities | 1,061 | — | 1,061 | — | ||||||||||||||||||||||
Equity securities with readily determinable fair value | 90,511 | 82,445 | 8,066 | — | ||||||||||||||||||||||
Mortgage loans held-for-sale | 817,912 | — | 817,912 | — | ||||||||||||||||||||||
Loans held-for-investment | 38,598 | — | 22,707 | 15,891 | ||||||||||||||||||||||
MSRs | 147,571 | — | — | 147,571 | ||||||||||||||||||||||
Nonqualified deferred compensation assets | 16,240 | — | 16,240 | — | ||||||||||||||||||||||
Derivative assets | 165,008 | — | 154,448 | 10,560 | ||||||||||||||||||||||
Total | $ | 3,604,694 | $ | 82,445 | $ | 3,242,540 | $ | 279,709 | ||||||||||||||||||
Derivative liabilities | $ | 123,000 | $ | — | $ | 123,000 | $ | — |
March 31, 2021 | |||||||||||||||||||||||
(In thousands) | Total | Level 1 | Level 2 | Level 3 | |||||||||||||||||||
Available-for-sale securities | |||||||||||||||||||||||
U.S. Treasury | $ | 65,001 | $ | 65,001 | $ | — | $ | — | |||||||||||||||
U.S. Government agencies | 81,526 | — | 79,742 | 1,784 | |||||||||||||||||||
Municipal | 148,300 | — | 46,552 | 101,748 | |||||||||||||||||||
Corporate notes | 92,349 | — | 92,349 | — | |||||||||||||||||||
Mortgage-backed | 2,043,573 | — | 2,043,573 | — | |||||||||||||||||||
Trading account securities | 951 | — | 951 | — | |||||||||||||||||||
Equity securities with readily determinable fair value | 90,338 | 82,272 | 8,066 | — | |||||||||||||||||||
Mortgage loans held-for-sale | 1,260,193 | — | 1,260,193 | — | |||||||||||||||||||
Loans held-for-investment | 51,916 | — | 45,508 | 6,408 | |||||||||||||||||||
MSRs | 124,316 | — | — | 124,316 | |||||||||||||||||||
Nonqualified deferred compensation assets | 15,891 | — | 15,891 | — | |||||||||||||||||||
Derivative assets | 253,509 | — | 227,875 | 25,634 | |||||||||||||||||||
Total | $ | 4,227,863 | $ | 147,273 | $ | 3,820,700 | $ | 259,890 | |||||||||||||||
Derivative liabilities | $ | 200,758 | $ | — | $ | 200,758 | $ | — |
U.S. Government agencies | Loans held-for- investment | Mortgage servicing rights | Derivative assets | ||||||||||||||||||||||||||
(In thousands) | Municipal | ||||||||||||||||||||||||||||
Balance at January 1, 2022 | $ | 105,687 | $ | — | $ | 15,891 | $ | 147,571 | $ | 10,560 | |||||||||||||||||||
Total net gains (losses) included in: | |||||||||||||||||||||||||||||
Net income (1) | — | — | (772) | 51,575 | (7,113) | ||||||||||||||||||||||||
Other comprehensive income (loss) | (5,449) | — | — | — | — | ||||||||||||||||||||||||
Purchases | 1,246 | — | — | — | — | ||||||||||||||||||||||||
Issuances | — | — | — | — | — | ||||||||||||||||||||||||
Sales | — | — | — | — | — | ||||||||||||||||||||||||
Settlements | (1,083) | — | (1,667) | — | — | ||||||||||||||||||||||||
Net transfers into/(out of) Level 3 | — | — | 31,012 | — | — | ||||||||||||||||||||||||
Balance at March 31, 2022 | $ | 100,401 | $ | — | $ | 44,464 | $ | 199,146 | $ | 3,447 |
U.S. Government agencies | Loans held-for- investment | Mortgage servicing rights | Derivative assets | ||||||||||||||||||||||||||
(In thousands) | Municipal | ||||||||||||||||||||||||||||
Balance at January 1, 2021 | $ | 109,876 | $ | 1,966 | $ | 10,280 | $ | 92,081 | $ | 48,091 | |||||||||||||||||||
Total net gains (losses) included in: | |||||||||||||||||||||||||||||
Net income (1) | — | — | (530) | 32,235 | (22,457) | ||||||||||||||||||||||||
Other comprehensive income (loss) | (2,068) | (24) | — | — | — | ||||||||||||||||||||||||
Purchases | — | — | — | — | — | ||||||||||||||||||||||||
Issuances | — | — | — | — | — | ||||||||||||||||||||||||
Sales | — | — | — | — | — | ||||||||||||||||||||||||
Settlements | (6,060) | (158) | (3,918) | — | — | ||||||||||||||||||||||||
Net transfers into/(out of) Level 3 | — | — | 576 | — | — | ||||||||||||||||||||||||
Balance at March 31, 2021 | $ | 101,748 | $ | 1,784 | $ | 6,408 | $ | 124,316 | $ | 25,634 |
March 31, 2022 | Three Months Ended March 31, 2022 Fair Value Losses Recognized, net | ||||||||||||||||||||||||||||
(In thousands) | Total | Level 1 | Level 2 | Level 3 | |||||||||||||||||||||||||
Individually assessed loans - foreclosure probable and collateral-dependent | $ | 44,844 | $ | — | $ | — | $ | 44,844 | $ | 2,880 | |||||||||||||||||||
Other real estate owned (1) | 6,203 | — | — | 6,203 | — | ||||||||||||||||||||||||
Total | $ | 51,047 | $ | — | $ | — | $ | 51,047 | $ | 2,880 |
(Dollars in thousands) | Fair Value | Valuation Methodology | Significant Unobservable Input | Range of Inputs | Weighted Average of Inputs | Impact to valuation from an increased or higher input value | |||||||||||||||||||||||||||||
Measured at fair value on a recurring basis: | |||||||||||||||||||||||||||||||||||
Municipal Securities | $ | 100,401 | Bond pricing | Equivalent rating | BBB-AA+ | N/A | Increase | ||||||||||||||||||||||||||||
Loans held-for-investment | 44,464 | Discounted cash flows | Discount rate | 4.00% - 4.25% | 4.25% | Decrease | |||||||||||||||||||||||||||||
Credit discount | 0% - 3% | 0.36% | Decrease | ||||||||||||||||||||||||||||||||
Constant prepayment rate (CPR) | 7.11% | 7.11% | Decrease | ||||||||||||||||||||||||||||||||
MSRs | 199,146 | Discounted cash flows | Discount rate | 6% - 19% | 9.79% | Decrease | |||||||||||||||||||||||||||||
Constant prepayment rate (CPR) | 0% - 100% | 7.11% | Decrease | ||||||||||||||||||||||||||||||||
Cost of servicing | $70 - $200 | $ | 75 | Decrease | |||||||||||||||||||||||||||||||
Cost of servicing - delinquent | $200 - 1,000 | $ | 305 | Decrease | |||||||||||||||||||||||||||||||
Derivatives | 3,447 | Discounted cash flows | Pull-through rate | 0% - 100% | 87.1 | % | Increase | ||||||||||||||||||||||||||||
Measured at fair value on a non-recurring basis: | |||||||||||||||||||||||||||||||||||
Individually assessed loans - foreclosure probable and collateral-dependent | 44,844 | Appraisal value | Appraisal adjustment - cost of sale | 10% | 10.00% | Decrease | |||||||||||||||||||||||||||||
Other real estate owned | 6,203 | Appraisal value | Appraisal adjustment - cost of sale | 10% | 10.00% | Decrease |
At March 31, 2022 | At December 31, 2021 | At March 31, 2021 | |||||||||||||||||||||||||||||||||
Carrying | Fair | Carrying | Fair | Carrying | Fair | ||||||||||||||||||||||||||||||
(In thousands) | Value | Value | Value | Value | Value | Value | |||||||||||||||||||||||||||||
Financial Assets: | |||||||||||||||||||||||||||||||||||
Cash and cash equivalents | $ | 462,572 | $ | 462,572 | $ | 411,205 | $ | 411,205 | $ | 426,377 | $ | 426,377 | |||||||||||||||||||||||
Securities sold under agreements to repurchase with original maturities exceeding three months | 700,000 | 700,000 | 700,000 | 700,000 | — | — | |||||||||||||||||||||||||||||
Interest-bearing deposits with banks | 4,013,597 | 4,013,597 | 5,372,603 | 5,372,603 | 3,348,794 | 3,348,794 | |||||||||||||||||||||||||||||
Available-for-sale securities | 2,998,898 | 2,998,898 | 2,327,793 | 2,327,793 | 2,430,749 | 2,430,749 | |||||||||||||||||||||||||||||
Held-to-maturity securities | 3,435,729 | 3,146,427 | 2,942,285 | 2,900,694 | 2,166,419 | 2,121,065 | |||||||||||||||||||||||||||||
Trading account securities | 852 | 852 | 1,061 | 1,061 | 951 | 951 | |||||||||||||||||||||||||||||
Equity securities with readily determinable fair value | 92,689 | 92,689 | 90,511 | 90,511 | 90,338 | 90,338 | |||||||||||||||||||||||||||||
FHLB and FRB stock, at cost | 136,163 | 136,163 | 135,378 | 135,378 | 135,881 | 135,881 | |||||||||||||||||||||||||||||
Brokerage customer receivables | 22,888 | 22,888 | 26,068 | 26,068 | 19,056 | 19,056 | |||||||||||||||||||||||||||||
Mortgage loans held-for-sale, at fair value | 606,545 | 606,545 | 817,912 | 817,912 | 1,260,193 | 1,260,193 | |||||||||||||||||||||||||||||
Loans held-for-investment, at fair value | 57,984 | 57,984 | 38,598 | 38,598 | 51,916 | 51,916 | |||||||||||||||||||||||||||||
Loans held-for-investment, at amortized cost | 35,222,563 | 35,989,840 | 34,750,506 | 35,297,878 | 33,119,317 | 33,066,760 | |||||||||||||||||||||||||||||
Nonqualified deferred compensation assets | 15,447 | 15,447 | 16,240 | 16,240 | 15,891 | 15,891 | |||||||||||||||||||||||||||||
Derivative assets | 153,534 | 153,534 | 165,008 | 165,008 | 253,509 | 253,509 | |||||||||||||||||||||||||||||
Accrued interest receivable and other | 278,873 | 278,873 | 268,921 | 268,921 | 281,020 | 281,020 | |||||||||||||||||||||||||||||
Total financial assets | $ | 48,198,334 | $ | 48,676,309 | $ | 48,064,089 | $ | 48,569,870 | $ | 43,600,411 | $ | 43,502,500 | |||||||||||||||||||||||
Financial Liabilities | |||||||||||||||||||||||||||||||||||
Non-maturity deposits | $ | 38,483,327 | $ | 38,483,327 | $ | 38,126,796 | $ | 38,126,796 | $ | 33,061,502 | $ | 33,061,502 | |||||||||||||||||||||||
Deposits with stated maturities | 3,735,995 | 3,735,750 | 3,968,789 | 3,965,372 | 4,811,150 | 4,801,257 | |||||||||||||||||||||||||||||
FHLB advances | 1,241,071 | 1,193,080 | 1,241,071 | 1,186,280 | 1,228,436 | 1,121,269 | |||||||||||||||||||||||||||||
Other borrowings | 482,516 | 483,202 | 494,136 | 494,670 | 516,877 | 516,877 | |||||||||||||||||||||||||||||
Subordinated notes | 437,033 | 446,711 | 436,938 | 472,684 | 436,595 | 458,832 | |||||||||||||||||||||||||||||
Junior subordinated debentures | 253,566 | 268,913 | 253,566 | 212,226 | 253,566 | 208,132 | |||||||||||||||||||||||||||||
Derivative liabilities | 122,107 | 122,107 | 123,000 | 123,000 | 200,758 | 200,758 | |||||||||||||||||||||||||||||
Accrued interest payable | 14,269 | 14,269 | 9,304 | 9,304 | 19,940 | 19,940 | |||||||||||||||||||||||||||||
Total financial liabilities | $ | 44,769,884 | $ | 44,747,359 | $ | 44,653,600 | $ | 44,590,332 | $ | 40,528,824 | $ | 40,388,567 |
Stock Options | Common Shares | Weighted Average Strike Price | Remaining Contractual Term (1) | Intrinsic Value (2) (in thousands) | |||||||||||||||||||
Outstanding at January 1, 2022 | 193,447 | $ | 41.62 | ||||||||||||||||||||
Granted | — | — | |||||||||||||||||||||
Exercised | (79,376) | 42.32 | |||||||||||||||||||||
Forfeited or canceled | (771) | 40.87 | |||||||||||||||||||||
Outstanding at March 31, 2022 | 113,300 | $ | 41.13 | 1.4 | $ | 5,869 | |||||||||||||||||
Exercisable at March 31, 2022 | 113,300 | $ | 41.13 | 1.4 | $ | 5,869 |
Stock Options | Common Shares | Weighted Average Strike Price | Remaining Contractual Term (1) | Intrinsic Value (2) (in thousands) | |||||||||||||||||||
Outstanding at January 1, 2021 | 520,663 | $ | 42.47 | ||||||||||||||||||||
Granted | — | — | |||||||||||||||||||||
Exercised | (208,579) | 42.96 | |||||||||||||||||||||
Forfeited or canceled | (590) | 46.86 | |||||||||||||||||||||
Outstanding at March 31, 2021 | 311,494 | $ | 42.14 | 1.8 | $ | 10,485 | |||||||||||||||||
Exercisable at March 31, 2021 | 309,945 | $ | 42.11 | 1.8 | $ | 10,441 |
Three months ended March 31, 2022 | Three months ended March 31, 2021 | ||||||||||||||||||||||
Restricted Shares | Common Shares | Weighted Average Grant-Date Fair Value | Common Shares | Weighted Average Grant-Date Fair Value | |||||||||||||||||||
Outstanding at January 1 | 476,813 | $ | 61.33 | 234,794 | $ | 59.02 | |||||||||||||||||
Granted | 194,849 | 97.30 | 257,189 | 62.79 | |||||||||||||||||||
Vested and issued | (52,465) | 65.42 | (7,104) | 78.13 | |||||||||||||||||||
Forfeited or canceled | (3,615) | 66.37 | (849) | 63.44 | |||||||||||||||||||
Outstanding at March 31 | 615,582 | $ | 72.34 | 484,030 | $ | 60.73 | |||||||||||||||||
Vested, but not issuable at March 31 | 95,806 | $ | 52.67 | 94,348 | $ | 52.21 |
Three months ended March 31, 2022 | Three months ended March 31, 2021 | ||||||||||||||||||||||
Performance-based Stock | Common Shares | Weighted Average Grant-Date Fair Value | Common Shares | Weighted Average Grant-Date Fair Value | |||||||||||||||||||
Outstanding at January 1 | 557,255 | $ | 62.94 | 482,608 | $ | 71.15 | |||||||||||||||||
Granted | 159,202 | 97.21 | 206,465 | 58.85 | |||||||||||||||||||
Added by performance factor at vesting | — | — | — | — | |||||||||||||||||||
Vested and issued | — | — | — | — | |||||||||||||||||||
Expired, canceled or forfeited | (159,952) | 71.56 | (125,622) | 87.88 | |||||||||||||||||||
Outstanding at March 31 | 556,505 | $ | 70.27 | 563,451 | $ | 62.91 | |||||||||||||||||
Vested, but deferred at March 31 | 35,285 | $ | 43.88 | 34,748 | $ | 43.28 |
Accumulated Unrealized Gains (Losses) on Securities | Accumulated Unrealized Gains (Losses) on Derivative Instruments | Accumulated Foreign Currency Translation Adjustments | Total Accumulated Other Comprehensive Income (Loss) | ||||||||||||||||||||
Balance at January 1, 2022 | $ | 8,724 | $ | 27,111 | $ | (31,743) | $ | 4,092 | |||||||||||||||
Other comprehensive (loss) income during the period, net of tax, before reclassifications | (151,114) | 25,023 | 2,288 | (123,803) | |||||||||||||||||||
Amount reclassified from accumulated other comprehensive income (loss) into net income, net of tax | (183) | 3,926 | — | 3,743 | |||||||||||||||||||
Amount reclassified from accumulated other comprehensive income (loss) related to amortization of unrealized gains on investment securities transferred to held-to-maturity from available-for-sale, net of tax | (31) | — | — | (31) | |||||||||||||||||||
Net other comprehensive (loss) income during the period, net of tax | $ | (151,328) | $ | 28,949 | $ | 2,288 | $ | (120,091) | |||||||||||||||
Balance at March 31, 2022 | $ | (142,604) | $ | 56,060 | $ | (29,455) | $ | (115,999) | |||||||||||||||
Balance at January 1, 2021 | $ | 70,737 | $ | (23,090) | $ | (32,265) | $ | 15,382 | |||||||||||||||
Other comprehensive (loss) income during the period, net of tax, before reclassifications | (44,519) | 32,345 | 2,180 | (9,994) | |||||||||||||||||||
Amount reclassified from accumulated other comprehensive income (loss) into net income, net of tax | (154) | 4,912 | — | 4,758 | |||||||||||||||||||
Amount reclassified from accumulated other comprehensive income (loss) related to amortization of unrealized gains on investment securities transferred to held-to-maturity from available-for-sale, net of tax | (42) | — | — | (42) | |||||||||||||||||||
Net other comprehensive (loss) income during the period, net of tax | $ | (44,715) | $ | 37,257 | $ | 2,180 | $ | (5,278) | |||||||||||||||
Balance at March 31, 2021 | $ | 26,022 | $ | 14,167 | $ | (30,085) | $ | 10,104 |
Amount Reclassified from Accumulated Other Comprehensive Income (Loss) for the | ||||||||||||||||||||
Details Regarding the Component of Accumulated Other Comprehensive Income (Loss) | Three Months Ended | Impacted Line on the Consolidated Statements of Income | ||||||||||||||||||
March 31, | ||||||||||||||||||||
2022 | 2021 | |||||||||||||||||||
Accumulated unrealized gains on securities | ||||||||||||||||||||
Gains included in net income | $ | 250 | $ | 210 | (Losses) gains on investment securities, net | |||||||||||||||
250 | 210 | Income before taxes | ||||||||||||||||||
Tax effect | (67) | (56) | Income tax expense | |||||||||||||||||
Net of tax | $ | 183 | $ | 154 | Net income | |||||||||||||||
Accumulated unrealized losses on derivative instruments | ||||||||||||||||||||
Amount reclassified to interest expense on deposits | $ | 4,819 | $ | 4,897 | Interest on deposits | |||||||||||||||
Amount reclassified to interest expense on other borrowings | 534 | 669 | Interest on other borrowings | |||||||||||||||||
Amount reclassified to interest expense on junior subordinated debentures | — | 1,130 | Interest on junior subordinated debentures | |||||||||||||||||
(5,353) | (6,696) | Income before taxes | ||||||||||||||||||
Tax effect | 1,427 | 1,784 | Income tax expense | |||||||||||||||||
Net of tax | $ | (3,926) | $ | (4,912) | Net income |
Three Months Ended | |||||||||||||||||
(In thousands, except per share data) | March 31, 2022 | March 31, 2021 | |||||||||||||||
Net income | $ | 127,391 | $ | 153,148 | |||||||||||||
Less: Preferred stock dividends | 6,991 | 6,991 | |||||||||||||||
Net income applicable to common shares | (A) | $ | 120,400 | $ | 146,157 | ||||||||||||
Weighted average common shares outstanding | (B) | 57,196 | 56,904 | ||||||||||||||
Effect of dilutive potential common shares | |||||||||||||||||
Common stock equivalents | 862 | 681 | |||||||||||||||
Weighted average common shares and effect of dilutive potential common shares | (C) | 58,058 | 57,585 | ||||||||||||||
Net income per common share: | |||||||||||||||||
Basic | (A/B) | $ | 2.11 | $ | 2.57 | ||||||||||||
Diluted | (A/C) | $ | 2.07 | $ | 2.54 |
Three months ended | |||||||||||||||||
(Dollars in thousands, except per share data) | March 31, 2022 | March 31, 2021 | Percentage (%) or Basis Point (bp) Change | ||||||||||||||
Net income | $ | 127,391 | $ | 153,148 | (17) | % | |||||||||||
Pre-tax income, excluding provision for credit losses (non-GAAP) (2) | 177,786 | 161,512 | 10 | ||||||||||||||
Net income per common share—Diluted | 2.07 | 2.54 | (18) | ||||||||||||||
Net revenue (1) | 462,084 | 448,401 | 3 | ||||||||||||||
Net interest income | 299,294 | 261,895 | 14 | ||||||||||||||
Net interest margin | 2.60 | % | 2.53 | % | 7 | bps | |||||||||||
Net interest margin - fully taxable equivalent (non-GAAP) (2) | 2.61 | 2.54 | 7 | ||||||||||||||
Net overhead ratio (3) | 1.00 | 0.90 | 10 | ||||||||||||||
Return on average assets | 1.04 | 1.38 | (34) | ||||||||||||||
Return on average common equity | 11.94 | 15.80 | (386) | ||||||||||||||
Return on average tangible common equity (non-GAAP) (2) | 14.48 | 19.49 | (501) | ||||||||||||||
At end of period | |||||||||||||||||
Total assets | $ | 50,250,661 | $ | 45,682,202 | 10 | % | |||||||||||
Total loans, excluding loans held-for-sale | 35,280,547 | 33,171,233 | 6 | ||||||||||||||
Total loans, including loans held-for-sale | 35,887,092 | 34,431,426 | 4 | ||||||||||||||
Total deposits | 42,219,322 | 37,872,652 | 11 | ||||||||||||||
Total shareholders’ equity | 4,492,256 | 4,252,511 | 6 | ||||||||||||||
Book value per common share (2) | $ | 71.26 | $ | 67.34 | 6 | ||||||||||||
Tangible common book value per share (2) | 59.34 | 55.42 | 7 | ||||||||||||||
Market price per common share | 92.93 | 75.80 | 23 | ||||||||||||||
Allowance for loan and unfunded lending-related commitment losses to total loans | 0.85 | % | 0.97 | % | (12) | bps | |||||||||||
Three Months Ended | |||||||||||||||||
March 31, | December 31, | March 31, | |||||||||||||||
(Dollars and shares in thousands) | 2022 | 2021 | 2021 | ||||||||||||||
Reconciliation of Non-GAAP Net Interest Margin and Efficiency Ratio: | |||||||||||||||||
(A) Interest Income (GAAP) | $ | 328,252 | $ | 327,979 | $ | 305,469 | |||||||||||
Taxable-equivalent adjustment: | |||||||||||||||||
- Loans | 427 | 417 | 384 | ||||||||||||||
- Liquidity management assets | 465 | 486 | 500 | ||||||||||||||
- Other earning assets | 2 | 2 | — | ||||||||||||||
(B) Interest Income (non-GAAP) | $ | 329,146 | $ | 328,884 | $ | 306,353 | |||||||||||
(C) Interest Expense (GAAP) | 28,958 | 32,003 | 43,574 | ||||||||||||||
(D) Net Interest Income (GAAP) (A minus C) | $ | 299,294 | $ | 295,976 | $ | 261,895 | |||||||||||
(E) Net Interest Income, fully taxable-equivalent (non-GAAP) (B minus C) | $ | 300,188 | $ | 296,881 | $ | 262,779 | |||||||||||
Net interest margin (GAAP) | 2.60 | % | 2.54 | % | 2.53 | % | |||||||||||
Net interest margin, fully taxable-equivalent (non-GAAP) | 2.61 | 2.55 | 2.54 | ||||||||||||||
(F) Non-interest income | $ | 162,790 | $ | 133,767 | $ | 186,506 | |||||||||||
(G) (Losses) gains on investment securities, net | (2,782) | (1,067) | 1,154 | ||||||||||||||
(H) Non-interest expense | 284,298 | 283,399 | 286,889 | ||||||||||||||
Efficiency ratio (H/(D+F-G)) | 61.16 | % | 65.78 | % | 64.15 | % | |||||||||||
Efficiency ratio (non-GAAP) (H/(E+F-G)) | 61.04 | 65.64 | 64.02 | ||||||||||||||
Reconciliation of Non-GAAP Tangible Common Equity Ratio: | |||||||||||||||||
Total shareholders’ equity (GAAP) | $ | 4,492,256 | $ | 4,498,688 | $ | 4,252,511 | |||||||||||
Less: Non-convertible preferred stock (GAAP) | (412,500) | (412,500) | (412,500) | ||||||||||||||
Less: Acquisition-related intangible assets (GAAP) | (682,101) | (683,456) | (680,052) | ||||||||||||||
(I) Total tangible common shareholders’ equity (non-GAAP) | $ | 3,397,655 | $ | 3,402,732 | $ | 3,159,959 | |||||||||||
(J) Total assets (GAAP) | $ | 50,250,661 | $ | 50,142,143 | $ | 45,682,202 | |||||||||||
Less: Acquisition-related intangible assets (GAAP) | (682,101) | (683,456) | (680,052) | ||||||||||||||
(K) Total tangible assets (non-GAAP) | $ | 49,568,560 | $ | 49,458,687 | $ | 45,002,150 | |||||||||||
Common equity to assets ratio (GAAP) (L/J) | 8.1 | % | 8.1 | % | 8.4 | % | |||||||||||
Tangible common equity ratio (non-GAAP) (I/K) | 6.9 | 6.9 | 7.0 | ||||||||||||||
Reconciliation of Non-GAAP Tangible Book Value per Common Share: | |||||||||||||||||
Total shareholders’ equity | $ | 4,492,256 | $ | 4,498,688 | $ | 4,252,511 | |||||||||||
Less: Preferred stock | (412,500) | (412,500) | (412,500) | ||||||||||||||
(L) Total common equity | $ | 4,079,756 | $ | 4,086,188 | $ | 3,840,011 | |||||||||||
(M) Actual common shares outstanding | 57,253 | 57,054 | 57,023 | ||||||||||||||
Book value per common share (L/M) | $ | 71.26 | $ | 71.62 | $ | 67.34 | |||||||||||
Tangible book value per common share (non-GAAP) (I/M) | 59.34 | 59.64 | 55.42 |
Reconciliation of Non-GAAP Return on Average Tangible Common Equity: | |||||||||||||||||
(N) Net income applicable to common shares | $ | 120,400 | $ | 91,766 | $ | 146,157 | |||||||||||
Add: Acquisition-related intangible asset amortization | 1,609 | 1,811 | 2,007 | ||||||||||||||
Less: Tax effect of acquisition-related intangible asset amortization | (430) | (505) | (522) | ||||||||||||||
After-tax acquisition-related intangible asset amortization | $ | 1,179 | $ | 1,306 | $ | 1,485 | |||||||||||
(O) Tangible net income applicable to common shares (non-GAAP) | $ | 121,579 | $ | 93,072 | $ | 147,642 | |||||||||||
Total average shareholders' equity | $ | 4,500,460 | $ | 4,433,953 | $ | 4,164,890 | |||||||||||
Less: Average preferred stock | (412,500) | (412,500) | (412,500) | ||||||||||||||
(P) Total average common shareholders' equity | $ | 4,087,960 | $ | 4,021,453 | $ | 3,752,390 | |||||||||||
Less: Average acquisition-related intangible assets | (682,603) | (677,470) | (680,805) | ||||||||||||||
(Q) Total average tangible common shareholders’ equity (non-GAAP) | $ | 3,405,357 | $ | 3,343,983 | $ | 3,071,585 | |||||||||||
Return on average common equity, annualized (N/P) | 11.94 | % | 9.05 | % | 15.80 | % | |||||||||||
Return on average tangible common equity, annualized (non-GAAP) (O/Q) | 14.48 | 11.04 | 19.49 |
Average Balance for three months ended, | Interest for three months ended, | Yield/Rate for three months ended, | |||||||||||||||||||||||||||||||||||||||||||||||||||
(Dollars in thousands) | Mar 31, 2022 | Dec 31, 2021 | Mar 31, 2021 | Mar 31, 2022 | Dec 31, 2021 | Mar 31, 2021 | Mar 31, 2022 | Dec 31, 2021 | Mar 31, 2021 | ||||||||||||||||||||||||||||||||||||||||||||
Interest-bearing deposits with banks, securities purchased under resale agreements and cash equivalents(1) | $ | 4,563,726 | $ | 6,148,165 | $ | 4,230,886 | $ | 2,118 | $ | 2,427 | $ | 1,199 | 0.19 | % | 0.16 | % | 0.11 | % | |||||||||||||||||||||||||||||||||||
Investment securities(2) | 6,378,022 | 5,317,351 | 3,944,676 | 32,863 | 27,696 | 19,764 | 2.09 | 2.07 | 2.03 | ||||||||||||||||||||||||||||||||||||||||||||
FHLB and FRB stock | 135,912 | 135,414 | 135,758 | 1,772 | 1,776 | 1,745 | 5.29 | 5.20 | 5.21 | ||||||||||||||||||||||||||||||||||||||||||||
Liquidity management assets(3)(8) | $ | 11,077,660 | $ | 11,600,930 | $ | 8,311,320 | $ | 36,753 | $ | 31,899 | $ | 22,708 | 1.35 | % | 1.09 | % | 1.11 | % | |||||||||||||||||||||||||||||||||||
Other earning assets(3)(4)(8) | 25,192 | 28,298 | 20,370 | 181 | 194 | 125 | 2.91 | 2.71 | 2.50 | ||||||||||||||||||||||||||||||||||||||||||||
Mortgage loans held-for-sale | 664,019 | 827,672 | 1,151,848 | 6,087 | 7,234 | 9,036 | 3.72 | 3.47 | 3.18 | ||||||||||||||||||||||||||||||||||||||||||||
Loans, net of unearned income(3)(5)(8) | 34,830,520 | 33,677,777 | 32,442,927 | 286,125 | 289,557 | 274,484 | 3.33 | 3.41 | 3.43 | ||||||||||||||||||||||||||||||||||||||||||||
Total earning assets(8) | $ | 46,597,391 | $ | 46,134,677 | $ | 41,926,465 | $ | 329,146 | $ | 328,884 | $ | 306,353 | 2.86 | % | 2.83 | % | 2.96 | % | |||||||||||||||||||||||||||||||||||
Allowance for loan and investment security losses | (253,080) | (254,874) | (327,080) | ||||||||||||||||||||||||||||||||||||||||||||||||||
Cash and due from banks | 481,634 | 468,331 | 366,413 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Other assets | 2,675,899 | 2,770,643 | 3,022,935 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Total assets | $ | 49,501,844 | $ | 49,118,777 | $ | 44,988,733 | |||||||||||||||||||||||||||||||||||||||||||||||
NOW and interest-bearing demand deposits | $ | 4,287,228 | $ | 3,962,739 | $ | 3,493,451 | $ | 849 | $ | 774 | $ | 901 | 0.08 | % | 0.08 | % | 0.10 | % | |||||||||||||||||||||||||||||||||||
Wealth management deposits | 4,427,301 | 4,514,319 | 4,156,398 | 7,098 | 7,595 | 7,351 | 0.65 | 0.67 | 0.72 | ||||||||||||||||||||||||||||||||||||||||||||
Money market accounts | 11,353,348 | 11,274,230 | 9,335,920 | 2,609 | 2,604 | 2,865 | 0.09 | 0.09 | 0.12 | ||||||||||||||||||||||||||||||||||||||||||||
Savings accounts | 3,904,299 | 3,766,037 | 3,587,566 | 336 | 345 | 430 | 0.03 | 0.04 | 0.05 | ||||||||||||||||||||||||||||||||||||||||||||
Time deposits | 3,861,371 | 4,058,282 | 4,875,392 | 3,962 | 5,254 | 16,397 | 0.42 | 0.51 | 1.36 | ||||||||||||||||||||||||||||||||||||||||||||
Interest-bearing deposits | $ | 27,833,547 | $ | 27,575,607 | $ | 25,448,727 | $ | 14,854 | $ | 16,572 | $ | 27,944 | 0.22 | % | 0.24 | % | 0.45 | % | |||||||||||||||||||||||||||||||||||
Federal Home Loan Bank advances | 1,241,071 | 1,241,073 | 1,228,433 | 4,816 | 4,923 | 4,840 | 1.57 | 1.57 | 1.60 | ||||||||||||||||||||||||||||||||||||||||||||
Other borrowings | 494,267 | 501,933 | 518,188 | 2,239 | 2,250 | 2,609 | 1.84 | 1.78 | 2.04 | ||||||||||||||||||||||||||||||||||||||||||||
Subordinated notes | 436,966 | 436,861 | 436,532 | 5,482 | 5,514 | 5,477 | 5.02 | 5.05 | 5.02 | ||||||||||||||||||||||||||||||||||||||||||||
Junior subordinated debentures | 253,566 | 253,566 | 253,566 | 1,567 | 2,744 | 2,704 | 2.47 | 4.23 | 4.27 | ||||||||||||||||||||||||||||||||||||||||||||
Total interest-bearing liabilities | $ | 30,259,417 | $ | 30,009,040 | $ | 27,885,446 | $ | 28,958 | $ | 32,003 | $ | 43,574 | 0.39 | % | 0.42 | % | 0.63 | % | |||||||||||||||||||||||||||||||||||
Non-interest-bearing deposits | 13,734,064 | 13,640,270 | 11,811,194 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Other liabilities | 1,007,903 | 1,035,514 | 1,127,203 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Equity | 4,500,460 | 4,433,953 | 4,164,890 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Total liabilities and shareholders’ equity | $ | 49,501,844 | $ | 49,118,777 | $ | 44,988,733 | |||||||||||||||||||||||||||||||||||||||||||||||
Interest rate spread(6)(8) | 2.47 | % | 2.41 | % | 2.33 | % | |||||||||||||||||||||||||||||||||||||||||||||||
Less: Fully taxable-equivalent adjustment | (894) | (905) | (884) | (0.01) | (0.01) | (0.01) | |||||||||||||||||||||||||||||||||||||||||||||||
Net free funds/contribution(7) | $ | 16,337,974 | $ | 16,125,637 | $ | 14,041,019 | 0.14 | 0.14 | 0.21 | ||||||||||||||||||||||||||||||||||||||||||||
Net interest income/margin (GAAP)(8) | $ | 299,294 | $ | 295,976 | $ | 261,895 | 2.60 | % | 2.54 | % | 2.53 | % | |||||||||||||||||||||||||||||||||||||||||
Fully taxable-equivalent adjustment | 894 | 905 | 884 | 0.01 | 0.01 | 0.01 | |||||||||||||||||||||||||||||||||||||||||||||||
Net interest income/margin, fully taxable-equivalent (non-GAAP)(8) | $ | 300,188 | $ | 296,881 | $ | 262,779 | 2.61 | % | 2.55 | % | 2.54 | % |
First Quarter of 2022 Compared to Fourth Quarter of 2021 | First Quarter of 2022 Compared to First Quarter of 2021 | ||||||||||
(In thousands) | |||||||||||
Net interest income, FTE basis (non-GAAP) for comparative period | $ | 296,881 | $ | 262,779 | |||||||
Change due to mix and growth of earning assets and interest-bearing liabilities (volume) | 6,572 | 21,716 | |||||||||
Change due to interest rate fluctuations (rate) | 3,386 | 15,693 | |||||||||
Change due to number of days in each period | (6,651) | — | |||||||||
Less: FTE adjustment | (894) | (894) | |||||||||
Net interest income (GAAP)(1) for the period ended March 31, 2022 | $ | 299,294 | $ | 299,294 | |||||||
FTE adjustment | 894 | 894 | |||||||||
Net interest income, FTE basis (non-GAAP)(1) | $ | 300,188 | $ | 300,188 |
Three Months Ended | $ Change | % Change | |||||||||||||||||||||
(Dollars in thousands) | March 31, 2022 | March 31, 2021 | |||||||||||||||||||||
Brokerage | $ | 4,632 | $ | 5,040 | $ | (408) | (8) | % | |||||||||||||||
Trust and asset management | 26,762 | 24,269 | 2,493 | 10 | |||||||||||||||||||
Total wealth management | 31,394 | 29,309 | 2,085 | 7 | |||||||||||||||||||
Mortgage banking | 77,231 | 113,494 | (36,263) | (32) | |||||||||||||||||||
Service charges on deposit accounts | 15,283 | 12,036 | 3,247 | 27 | |||||||||||||||||||
(Losses) gains on investment securities, net | (2,782) | 1,154 | (3,936) | NM | |||||||||||||||||||
Fees from covered call options | 3,742 | — | 3,742 | NM | |||||||||||||||||||
Trading gains, net | 3,889 | 419 | 3,470 | NM | |||||||||||||||||||
Operating lease income, net | 15,475 | 14,440 | 1,035 | 7 | |||||||||||||||||||
Other: | |||||||||||||||||||||||
Interest rate swap fees | 4,569 | 2,488 | 2,081 | 84 | |||||||||||||||||||
BOLI | 48 | 1,124 | (1,076) | (96) | |||||||||||||||||||
Administrative services | 1,853 | 1,256 | 597 | 48 | |||||||||||||||||||
Foreign currency remeasurement gains | 11 | 99 | (88) | (89) | |||||||||||||||||||
Early pay-offs of capital leases | 265 | (52) | 317 | NM | |||||||||||||||||||
Miscellaneous | 11,812 | 10,739 | 1,073 | 10 | |||||||||||||||||||
Total Other | 18,558 | 15,654 | 2,904 | 19 | |||||||||||||||||||
Total Non-interest Income | $ | 162,790 | $ | 186,506 | $ | (23,716) | (13) | % |
Three Months Ended | ||||||||||||||
(Dollars in thousands) | March 31, 2022 | March 31, 2021 | ||||||||||||
Originations: | ||||||||||||||
Retail originations | $ | 647,785 | $ | 1,641,664 | ||||||||||
Veterans First originations | 247,738 | 580,303 | ||||||||||||
Total originations for sale (A) | $ | 895,523 | $ | 2,221,967 | ||||||||||
Originations for investment | 274,628 | 321,858 | ||||||||||||
Total originations | $ | 1,170,151 | $ | 2,543,825 | ||||||||||
Retail originations as percentage of originations for sale | 72 | % | 74 | % | ||||||||||
Veterans First originations as a percentage of originations for sale | 28 | 26 | ||||||||||||
Purchases as a percentage of originations for sale | 53 | % | 27 | % | ||||||||||
Refinances as a percentage of originations for sale | 47 | 73 | ||||||||||||
Production Margin: | ||||||||||||||
Production revenue (B) (1) | $ | 14,585 | $ | 71,282 | ||||||||||
Total originations for sale (A) | $ | 895,523 | $ | 2,221,967 | ||||||||||
Add: Current period end mandatory interest rate lock commitments to fund originations for sale (2) | 330,196 | 798,534 | ||||||||||||
Less: Prior period end mandatory interest rate lock commitments to fund originations for sale (2) | 353,509 | 1,072,717 | ||||||||||||
Total mortgage production volume (C) | $ | 872,210 | $ | 1,947,784 | ||||||||||
Production margin (B/C) | 1.67 | % | 3.66 | % | ||||||||||
Mortgage Servicing: | ||||||||||||||
Loans serviced for others (D) | $ | 13,426,535 | $ | 11,530,676 | ||||||||||
MSRs, at fair value (E) | 199,146 | 124,316 | ||||||||||||
Percentage of MSRs to loans serviced for others (E/D) | 1.48 | % | 1.08 | % | ||||||||||
Servicing income | $ | 10,851 | $ | 9,636 | ||||||||||
Components of MSR: | ||||||||||||||
MSR - current period capitalization | $ | 14,401 | $ | 24,616 | ||||||||||
MSR - collection of expected cash flow - paydowns | (1,215) | (728) | ||||||||||||
MSR - collection of expected cash flow - payoffs | (4,801) | (9,440) | ||||||||||||
MSR - changes in fair value model assumptions | 43,365 | 18,045 | ||||||||||||
Summary of Mortgage Banking Revenue: | ||||||||||||||
Production revenue (1) | $ | 14,585 | $ | 71,282 | ||||||||||
Servicing income | 10,851 | 9,636 | ||||||||||||
MSR activity | 51,750 | 32,493 | ||||||||||||
Other | 45 | 83 | ||||||||||||
Total mortgage banking revenue | $ | 77,231 | $ | 113,494 |
Three months ended | $ Change | % Change | |||||||||||||||||||||
(Dollars in thousands) | March 31, 2022 | March 31, 2021 | |||||||||||||||||||||
Salaries and employee benefits: | |||||||||||||||||||||||
Salaries | $ | 92,116 | $ | 91,053 | $ | 1,063 | 1 | % | |||||||||||||||
Commissions and incentive compensation | 51,793 | 61,367 | (9,574) | (16) | |||||||||||||||||||
Benefits | 28,446 | 28,389 | 57 | 0 | |||||||||||||||||||
Total salaries and employee benefits | 172,355 | 180,809 | (8,454) | (5) | |||||||||||||||||||
Software and equipment | 22,810 | 20,912 | 1,898 | 9 | |||||||||||||||||||
Operating lease equipment depreciation | 9,708 | 10,771 | (1,063) | (10) | |||||||||||||||||||
Occupancy, net | 17,824 | 19,996 | (2,172) | (11) | |||||||||||||||||||
Data processing | 7,505 | 6,048 | 1,457 | 24 | |||||||||||||||||||
Advertising and marketing | 11,924 | 8,546 | 3,378 | 40 | |||||||||||||||||||
Professional fees | 8,401 | 7,587 | 814 | 11 | |||||||||||||||||||
Amortization of other acquisition-related intangible assets | 1,609 | 2,007 | (398) | (20) | |||||||||||||||||||
FDIC insurance | 7,729 | 6,558 | 1,171 | 18 | |||||||||||||||||||
OREO expense, net | (1,032) | (251) | (781) | NM | |||||||||||||||||||
Other: | |||||||||||||||||||||||
Commissions—3rd party brokers | 917 | 846 | 71 | 8 | |||||||||||||||||||
Postage | 1,416 | 1,743 | (327) | (19) | |||||||||||||||||||
Miscellaneous | 23,132 | 21,317 | 1,815 | 9 | |||||||||||||||||||
Total other | 25,465 | 23,906 | 1,559 | 7 | |||||||||||||||||||
Total Non-interest Expense | $ | 284,298 | $ | 286,889 | $ | (2,591) | (1) | % |
Three Months Ended | |||||||||||||||||||||||||||||||||||
March 31, 2022 | December 31, 2021 | March 31, 2021 | |||||||||||||||||||||||||||||||||
(Dollars in thousands) | Balance | Percent | Balance | Percent | Balance | Percent | |||||||||||||||||||||||||||||
Mortgage loans held-for-sale | $ | 664,019 | 1 | % | $ | 827,672 | 2 | % | $ | 1,151,848 | 3 | % | |||||||||||||||||||||||
Loans, net of unearned income | |||||||||||||||||||||||||||||||||||
Commercial, excluding PPP | $ | 11,221,409 | 24 | % | $ | 10,462,391 | 23 | % | $ | 9,180,308 | 22 | % | |||||||||||||||||||||||
Commercial - PPP | 382,572 | 1 | 808,606 | 2 | 3,087,825 | 7 | |||||||||||||||||||||||||||||
Commercial real estate | 9,133,587 | 20 | 8,934,937 | 19 | 8,497,091 | 20 | |||||||||||||||||||||||||||||
Home equity | 328,817 | 1 | 342,671 | 1 | 408,565 | 1 | |||||||||||||||||||||||||||||
Residential real estate | 1,658,884 | 4 | 1,569,341 | 3 | 1,300,871 | 3 | |||||||||||||||||||||||||||||
Premium finance receivables | 12,056,395 | 25 | 11,504,952 | 25 | 9,910,388 | 24 | |||||||||||||||||||||||||||||
Other loans | 48,856 | 0 | 54,879 | 0 | 57,879 | 0 | |||||||||||||||||||||||||||||
Total average loans (1) | $ | 34,830,520 | 75 | % | $ | 33,677,777 | 73 | % | $ | 32,442,927 | 77 | % | |||||||||||||||||||||||
Liquidity management assets (2) | 11,077,660 | 24 | 11,600,930 | 25 | 8,311,320 | 20 | |||||||||||||||||||||||||||||
Other earning assets (3) | 25,192 | 0 | 28,298 | 0 | 20,370 | 0 | |||||||||||||||||||||||||||||
Total average earning assets | $ | 46,597,391 | 100 | % | $ | 46,134,677 | 100 | % | $ | 41,926,465 | 100 | % | |||||||||||||||||||||||
Total average assets | $ | 49,501,844 | $ | 49,118,777 | $ | 44,988,733 | |||||||||||||||||||||||||||||
Total average earning assets to total average assets | 94 | % | 94 | % | 93 | % |
March 31, 2022 | December 31, 2021 | March 31, 2021 | |||||||||||||||||||||||||||||||||
% of | % of | % of | |||||||||||||||||||||||||||||||||
(Dollars in thousands) | Amount | Total | Amount | Total | Amount | Total | |||||||||||||||||||||||||||||
Commercial | $ | 11,583,963 | 33 | % | $ | 11,904,068 | 34 | % | $ | 12,708,207 | 38 | % | |||||||||||||||||||||||
Commercial real estate | 9,235,074 | 26 | 8,990,286 | 26 | 8,544,779 | 26 | |||||||||||||||||||||||||||||
Home equity | 321,435 | 1 | 335,155 | 1 | 390,253 | 1 | |||||||||||||||||||||||||||||
Residential real estate | 1,799,985 | 5 | 1,637,099 | 5 | 1,421,973 | 4 | |||||||||||||||||||||||||||||
Premium finance receivables—property and casualty | 4,937,408 | 14 | 4,855,487 | 14 | 3,958,543 | 12 | |||||||||||||||||||||||||||||
Premium finance receivables—life insurance | 7,354,163 | 21 | 7,042,810 | 20 | 6,111,495 | 19 | |||||||||||||||||||||||||||||
Consumer and other | 48,519 | 0 | 24,199 | 0 | 35,983 | 0 | |||||||||||||||||||||||||||||
Total loans, net of unearned income | $ | 35,280,547 | 100 | % | $ | 34,789,104 | 100 | % | $ | 33,171,233 | 100 | % |
As of March 31, 2022 | As of March 31, 2021 | ||||||||||||||||||||||||||||||||||
Allowance | Allowance | ||||||||||||||||||||||||||||||||||
% of | For Credit | % of | For Credit | ||||||||||||||||||||||||||||||||
Total | Losses | Total | Losses | ||||||||||||||||||||||||||||||||
(Dollars in thousands) | Balance | Balance | Allocation | Balance | Balance | Allocation | |||||||||||||||||||||||||||||
Commercial: | |||||||||||||||||||||||||||||||||||
Commercial, industrial, and other, excluding commercial PPP | $ | 11,329,999 | 54.4 | % | $ | 120,910 | $ | 9,415,225 | 44.3 | % | $ | 95,637 | |||||||||||||||||||||||
Commercial PPP | 253,964 | 1.2 | 1 | 3,292,982 | 15.5 | 3 | |||||||||||||||||||||||||||||
Total commercial | $ | 11,583,963 | 55.6 | % | $ | 120,911 | $ | 12,708,207 | 59.8 | % | $ | 95,640 | |||||||||||||||||||||||
Commercial Real Estate: | |||||||||||||||||||||||||||||||||||
Construction and development | $ | 1,396,406 | 6.7 | % | $ | 34,206 | $ | 1,353,324 | 6.4 | % | $ | 45,327 | |||||||||||||||||||||||
Non-construction | 7,838,668 | 37.7 | 110,700 | 7,191,455 | 33.8 | 136,465 | |||||||||||||||||||||||||||||
Total commercial real estate | $ | 9,235,074 | 44.4 | % | $ | 144,906 | $ | 8,544,779 | 40.2 | % | $ | 181,792 | |||||||||||||||||||||||
Total commercial and commercial real estate | $ | 20,819,037 | 100.0 | % | $ | 265,817 | $ | 21,252,986 | 100.0 | % | $ | 277,432 | |||||||||||||||||||||||
Commercial real estate - collateral location by state: | |||||||||||||||||||||||||||||||||||
Illinois | $ | 6,450,630 | 69.8 | % | $ | 6,256,230 | 73.2 | % | |||||||||||||||||||||||||||
Wisconsin | 771,336 | 8.4 | 771,382 | 9.0 | |||||||||||||||||||||||||||||||
Total primary markets | $ | 7,221,966 | 78.2 | % | $ | 7,027,612 | 82.2 | % | |||||||||||||||||||||||||||
Indiana | 340,862 | 3.7 | 310,494 | 3.6 | |||||||||||||||||||||||||||||||
Florida | 183,824 | 2.0 | 130,759 | 1.5 | |||||||||||||||||||||||||||||||
Arizona | 103,735 | 1.1 | 73,892 | 0.9 | |||||||||||||||||||||||||||||||
California | 137,726 | 1.5 | 88,514 | 1.0 | |||||||||||||||||||||||||||||||
Texas | 164,144 | 1.8 | 85,228 | 1.0 | |||||||||||||||||||||||||||||||
Other | 1,082,817 | 11.7 | 828,280 | 9.8 | |||||||||||||||||||||||||||||||
Total commercial real estate | $ | 9,235,074 | 100.0 | % | $ | 8,544,779 | 100.0 | % |
As of March 31, 2022 | One year or less | From one to five years | From five to fifteen years | After fifteen years | |||||||||||||||||||||||||
(In thousands) | Total | ||||||||||||||||||||||||||||
Commercial | |||||||||||||||||||||||||||||
Fixed rate | $ | 459,243 | $ | 2,128,103 | $ | 1,317,788 | $ | 11,690 | $ | 3,916,824 | |||||||||||||||||||
Fixed rate - PPP | 14,053 | 239,911 | — | — | 253,964 | ||||||||||||||||||||||||
Variable rate | 7,410,135 | 2,985 | 55 | — | 7,413,175 | ||||||||||||||||||||||||
Total commercial | $ | 7,883,431 | $ | 2,370,999 | $ | 1,317,843 | $ | 11,690 | $ | 11,583,963 | |||||||||||||||||||
Commercial real estate | |||||||||||||||||||||||||||||
Fixed rate | 445,996 | 2,464,523 | 528,599 | 38,784 | 3,477,902 | ||||||||||||||||||||||||
Variable rate | 5,740,276 | 16,896 | — | — | 5,757,172 | ||||||||||||||||||||||||
Total commercial real estate | $ | 6,186,272 | $ | 2,481,419 | $ | 528,599 | $ | 38,784 | $ | 9,235,074 | |||||||||||||||||||
Home equity | |||||||||||||||||||||||||||||
Fixed rate | 13,341 | 3,596 | 7 | 40 | 16,984 | ||||||||||||||||||||||||
Variable rate | 304,451 | — | — | — | 304,451 | ||||||||||||||||||||||||
Total home equity | $ | 317,792 | $ | 3,596 | $ | 7 | $ | 40 | $ | 321,435 | |||||||||||||||||||
Residential real estate | |||||||||||||||||||||||||||||
Fixed rate | 15,634 | 5,566 | 29,696 | 925,814 | 976,710 | ||||||||||||||||||||||||
Variable rate | 61,274 | 215,288 | 546,713 | — | 823,275 | ||||||||||||||||||||||||
Total residential real estate | $ | 76,908 | $ | 220,854 | $ | 576,409 | $ | 925,814 | $ | 1,799,985 | |||||||||||||||||||
Premium finance receivables - property & casualty | |||||||||||||||||||||||||||||
Fixed rate | 4,794,729 | 142,679 | — | — | 4,937,408 | ||||||||||||||||||||||||
Variable rate | — | — | — | — | — | ||||||||||||||||||||||||
Total premium finance receivables - property & casualty | $ | 4,794,729 | $ | 142,679 | $ | — | $ | — | $ | 4,937,408 | |||||||||||||||||||
Premium finance receivables - life insurance | |||||||||||||||||||||||||||||
Fixed rate | 8,668 | 486,604 | 21,756 | — | 517,028 | ||||||||||||||||||||||||
Variable rate | 6,837,135 | — | — | — | 6,837,135 | ||||||||||||||||||||||||
Total premium finance receivables - life insurance | $ | 6,845,803 | $ | 486,604 | $ | 21,756 | $ | — | $ | 7,354,163 | |||||||||||||||||||
Consumer and other | |||||||||||||||||||||||||||||
Fixed rate | 19,937 | 5,204 | 90 | 494 | 25,725 | ||||||||||||||||||||||||
Variable rate | 22,794 | — | — | — | 22,794 | ||||||||||||||||||||||||
Total consumer and other | $ | 42,731 | $ | 5,204 | $ | 90 | $ | 494 | $ | 48,519 | |||||||||||||||||||
Total per category | |||||||||||||||||||||||||||||
Fixed rate | 5,757,548 | 5,236,275 | 1,897,936 | 976,822 | 13,868,581 | ||||||||||||||||||||||||
Fixed rate - PPP | 14,053 | 239,911 | — | — | 253,964 | ||||||||||||||||||||||||
Variable rate | 20,376,065 | 235,169 | 546,768 | — | 21,158,002 | ||||||||||||||||||||||||
Total loans, net of unearned income | $ | 26,147,666 | $ | 5,711,355 | $ | 2,444,704 | $ | 976,822 | $ | 35,280,547 | |||||||||||||||||||
Variable Rate Loan Pricing by Index: | |||||||||||||||||||||||||||||
Prime | $ | 3,399,089 | |||||||||||||||||||||||||||
One- month LIBOR | 7,944,718 | ||||||||||||||||||||||||||||
Three- month LIBOR | 299,324 | ||||||||||||||||||||||||||||
Twelve- month LIBOR | 6,803,367 | ||||||||||||||||||||||||||||
U.S. Treasury tenors | 115,188 | ||||||||||||||||||||||||||||
SOFR tenors | 1,758,787 | ||||||||||||||||||||||||||||
Ameribor tenors | 221,689 | ||||||||||||||||||||||||||||
One-month BSBY | 7,360 | ||||||||||||||||||||||||||||
Other | 608,480 | ||||||||||||||||||||||||||||
Total variable rate | $ | 21,158,002 |
1 Rating — | Minimal Risk (Loss Potential – none or extremely low) (Superior asset quality, excellent liquidity, minimal leverage) | |||||||
2 Rating — | Modest Risk (Loss Potential demonstrably low) (Very good asset quality and liquidity, strong leverage capacity) | |||||||
3 Rating — | Average Risk (Loss Potential low but no longer refutable) (Mostly satisfactory asset quality and liquidity, good leverage capacity) | |||||||
4 Rating — | Above Average Risk (Loss Potential variable, but some potential for deterioration) (Acceptable asset quality, little excess liquidity, modest leverage capacity) | |||||||
5 Rating — | Management Attention Risk (Loss Potential moderate if corrective action not taken) (Generally acceptable asset quality, somewhat strained liquidity, minimal leverage capacity) | |||||||
6 Rating — | Special Mention (Loss Potential moderate if corrective action not taken) (Assets in this category are currently protected, potentially weak, but not to the point of substandard classification) | |||||||
7 Rating — | Substandard Accrual (Loss Potential distinct possibility that the bank may sustain some loss, but no discernible impairment) (Must have well defined weaknesses that jeopardize the liquidation of the debt) | |||||||
8 Rating — | Substandard Non-accrual (Loss Potential well documented probability of loss, including potential impairment) (Must have well defined weaknesses that jeopardize the liquidation of the debt) | |||||||
9 Rating — | Doubtful (Loss Potential extremely high) (These assets have all the weaknesses in those classified “substandard” with the added characteristic that the weaknesses make collection or liquidation in full, on the basis of current existing facts, conditions, and values, highly improbable) | |||||||
10 Rating — | Loss (fully charged-off) (Loans in this category are considered fully uncollectible.) |
(Dollars in thousands) | March 31, 2022 | December 31, 2021 | March 31, 2021 | ||||||||||||||
Loans past due greater than 90 days and still accruing (1): | |||||||||||||||||
Commercial | $ | — | $ | 15 | $ | — | |||||||||||
Commercial real estate | — | — | — | ||||||||||||||
Home equity | — | — | — | ||||||||||||||
Residential real estate | — | — | — | ||||||||||||||
Premium finance receivables—property and casualty | 12,363 | 7,210 | 4,592 | ||||||||||||||
Premium finance receivables—life insurance | — | 7 | 191 | ||||||||||||||
Consumer and other | 43 | 137 | 161 | ||||||||||||||
Total loans past due greater than 90 days and still accruing | 12,406 | 7,369 | 4,944 | ||||||||||||||
Non-accrual loans: | |||||||||||||||||
Commercial | 16,878 | 20,399 | 22,459 | ||||||||||||||
Commercial real estate | 12,301 | 21,746 | 34,380 | ||||||||||||||
Home equity | 1,747 | 2,574 | 5,536 | ||||||||||||||
Residential real estate | 7,262 | 16,440 | 21,553 | ||||||||||||||
Premium finance receivables—property and casualty | 6,707 | 5,433 | 9,690 | ||||||||||||||
Premium finance receivables—life insurance | — | — | — | ||||||||||||||
Consumer and other | 4 | 477 | 497 | ||||||||||||||
Total non-accrual loans | 44,899 | 67,069 | 94,115 | ||||||||||||||
Total non-performing loans: | |||||||||||||||||
Commercial | 16,878 | 20,414 | 22,459 | ||||||||||||||
Commercial real estate | 12,301 | 21,746 | 34,380 | ||||||||||||||
Home equity | 1,747 | 2,574 | 5,536 | ||||||||||||||
Residential real estate | 7,262 | 16,440 | 21,553 | ||||||||||||||
Premium finance receivables—property and casualty | 19,070 | 12,643 | 14,282 | ||||||||||||||
Premium finance receivables—life insurance | — | 7 | 191 | ||||||||||||||
Consumer and other | 47 | 614 | 658 | ||||||||||||||
Total non-performing loans | $ | 57,305 | $ | 74,438 | $ | 99,059 | |||||||||||
Other real estate owned | 4,978 | 1,959 | 8,679 | ||||||||||||||
Other real estate owned—from acquisitions | 1,225 | 2,312 | 7,134 | ||||||||||||||
Other repossessed assets | — | — | — | ||||||||||||||
Total non-performing assets | 63,508 | $ | 78,709 | $ | 114,872 | ||||||||||||
Accruing TDRs not included within non-performing assets | $ | 35,922 | $ | 37,486 | $ | 46,151 | |||||||||||
Total non-performing loans by category as a percent of its own respective category’s period-end balance: | |||||||||||||||||
Commercial | 0.15 | % | 0.17 | % | 0.18 | % | |||||||||||
Commercial real estate | 0.13 | 0.24 | 0.40 | ||||||||||||||
Home equity | 0.54 | 0.77 | 1.42 | ||||||||||||||
Residential real estate | 0.40 | 1.00 | 1.52 | ||||||||||||||
Premium finance receivables—property and casualty | 0.39 | 0.26 | 0.36 | ||||||||||||||
Premium finance receivables—life insurance | — | 0.00 | 0.00 | ||||||||||||||
Consumer and other | 0.10 | 2.54 | 1.83 | ||||||||||||||
Total non-performing loans | 0.16 | % | 0.21 | % | 0.30 | % | |||||||||||
Total non-performing assets, as a percentage of total assets | 0.13 | % | 0.16 | % | 0.25 | % | |||||||||||
Total non-accrual loans as a percentage of total loans | 0.13 | % | 0.19 | % | 0.28 | % | |||||||||||
Allowance for credit losses as a percentage of nonaccrual loans | 670.77 | % | 446.78 | % | 341.29 | % |
Nonaccrual | 90+ days and still accruing | 60-89 days past due | 30-59 days past due | Current | Total Loans | ||||||||||||||||||||||||||||||
As of March 31, 2022 | |||||||||||||||||||||||||||||||||||
(Dollars in thousands) | |||||||||||||||||||||||||||||||||||
Loan Balances: | |||||||||||||||||||||||||||||||||||
Commercial | |||||||||||||||||||||||||||||||||||
Commercial, industrial and other, excluding PPP loans | $ | 16,878 | $ | — | $ | 1,294 | $ | 31,873 | $ | 11,279,954 | $ | 11,329,999 | |||||||||||||||||||||||
Commercial PPP loans | — | — | — | 16 | 253,948 | 253,964 | |||||||||||||||||||||||||||||
Commercial real estate | |||||||||||||||||||||||||||||||||||
Construction and development | 1,054 | — | — | 1,409 | 1,393,943 | 1,396,406 | |||||||||||||||||||||||||||||
Non-construction | 11,247 | — | 2,648 | 28,732 | 7,796,041 | 7,838,668 | |||||||||||||||||||||||||||||
Home equity | 1,747 | — | 199 | 545 | 318,944 | 321,435 | |||||||||||||||||||||||||||||
Residential real estate, excluding early buy-out loans | 7,262 | — | 293 | 18,808 | 1,723,526 | 1,749,889 | |||||||||||||||||||||||||||||
Premium finance receivables | |||||||||||||||||||||||||||||||||||
Property and casualty insurance loans | 6,707 | 12,363 | 8,890 | 21,278 | 4,888,170 | 4,937,408 | |||||||||||||||||||||||||||||
Life insurance loans | — | — | 22,401 | 15,522 | 7,316,240 | 7,354,163 | |||||||||||||||||||||||||||||
Consumer and other | 4 | 43 | 5 | 221 | 48,246 | 48,519 | |||||||||||||||||||||||||||||
Total loans, net of unearned income, excluding early buy-out loans | $ | 44,899 | $ | 12,406 | $ | 35,730 | $ | 118,404 | $ | 35,019,012 | $ | 35,230,451 | |||||||||||||||||||||||
Early buy-out loans guaranteed by U.S. government agencies (1) | 4,661 | 28,958 | — | 185 | 16,292 | 50,096 | |||||||||||||||||||||||||||||
Total loans, net of unearned income | $ | 49,560 | $ | 41,364 | $ | 35,730 | $ | 118,589 | $ | 35,035,304 | $ | 35,280,547 |
Nonaccrual | 90+ days and still accruing | 60-89 days past due | 30-59 days past due | Current | Total Loans | ||||||||||||||||||||||||||||||
As of December 31, 2021 | |||||||||||||||||||||||||||||||||||
(Dollars in thousands) | |||||||||||||||||||||||||||||||||||
Loan Balances: | |||||||||||||||||||||||||||||||||||
Commercial | |||||||||||||||||||||||||||||||||||
Commercial, industrial and other, excluding PPP loans | $ | 20,399 | $ | — | $ | 23,492 | $ | 42,933 | $ | 11,258,961 | $ | 11,345,785 | |||||||||||||||||||||||
Commercial PPP loans | — | 15 | 770 | 928 | 556,570 | 558,283 | |||||||||||||||||||||||||||||
Commercial real estate | |||||||||||||||||||||||||||||||||||
Construction and development | 1,377 | — | — | 2,809 | 1,352,018 | 1,356,204 | |||||||||||||||||||||||||||||
Non-construction | 20,369 | — | 284 | 37,634 | 7,575,795 | 7,634,082 | |||||||||||||||||||||||||||||
Home equity | 2,574 | — | — | 1,120 | 331,461 | 335,155 | |||||||||||||||||||||||||||||
Residential real estate, excluding early buy-out loans | 16,440 | — | 982 | 12,145 | 1,576,704 | 1,606,271 | |||||||||||||||||||||||||||||
Premium finance receivables | |||||||||||||||||||||||||||||||||||
Property and casualty insurance loans | 5,433 | 7,210 | 15,490 | 22,419 | 4,804,935 | 4,855,487 | |||||||||||||||||||||||||||||
Life insurance loans | — | 7 | 12,614 | 66,651 | 6,963,538 | 7,042,810 | |||||||||||||||||||||||||||||
Consumer and other | 477 | 137 | 34 | 509 | 23,042 | 24,199 | |||||||||||||||||||||||||||||
Total loans, net of unearned income, excluding early buy-out loans | $ | 67,069 | $ | 7,369 | $ | 53,666 | $ | 187,148 | $ | 34,443,024 | $ | 34,758,276 | |||||||||||||||||||||||
Early buy-out loans guaranteed by U.S. government agencies (1) | — | — | — | 275 | 30,553 | 30,828 | |||||||||||||||||||||||||||||
Total loans, net of unearned income | $ | 67,069 | $ | 7,369 | $ | 53,666 | $ | 187,423 | $ | 34,473,577 | $ | 34,789,104 |
Three Months Ended | |||||||||||
March 31, | March 31, | ||||||||||
(In thousands) | 2022 | 2021 | |||||||||
Balance at beginning of period | $ | 74,438 | $ | 127,513 | |||||||
Additions from becoming non-performing in the respective period | 4,141 | 9,894 | |||||||||
Return to performing status | (729) | (654) | |||||||||
Payments received | (20,139) | (22,731) | |||||||||
Transfer to OREO and other repossessed assets | (4,377) | (1,372) | |||||||||
Charge-offs | (2,354) | (2,952) | |||||||||
Net change for niche loans (1) | 6,325 | (10,639) | |||||||||
Balance at end of period | $ | 57,305 | $ | 99,059 |
Three Months Ended | |||||||||||
(Dollars in thousands) | March 31, 2022 | March 31, 2021 | |||||||||
Allowance for credit losses at beginning of period | $ | 299,653 | $ | 379,910 | |||||||
Provision for credit losses | 4,025 | (45,386) | |||||||||
Other adjustments | 22 | 30 | |||||||||
Charge-offs: | |||||||||||
Commercial | 1,414 | 11,781 | |||||||||
Commercial real estate | 777 | 980 | |||||||||
Home equity | 197 | — | |||||||||
Residential real estate | 466 | 2 | |||||||||
Premium finance receivables | 1,678 | 3,239 | |||||||||
Consumer and other | 193 | 114 | |||||||||
Total charge-offs | 4,725 | 16,116 | |||||||||
Recoveries: | |||||||||||
Commercial | 538 | 452 | |||||||||
Commercial real estate | 32 | 200 | |||||||||
Home equity | 93 | 101 | |||||||||
Residential real estate | 5 | 204 | |||||||||
Premium finance receivables | 1,476 | 1,782 | |||||||||
Consumer and other | 49 | 32 | |||||||||
Total recoveries | 2,193 | 2,771 | |||||||||
Net charge-offs | (2,532) | (13,345) | |||||||||
Allowance for credit losses at period end | $ | 301,168 | $ | 321,209 | |||||||
Annualized net charge-offs by category as a percentage of its own respective category’s average: | |||||||||||
Commercial | 0.03 | % | 0.37 | % | |||||||
Commercial real estate | 0.03 | 0.04 | |||||||||
Home equity | 0.13 | (0.10) | |||||||||
Residential real estate | 0.11 | (0.06) | |||||||||
Premium finance receivables | 0.01 | 0.06 | |||||||||
Consumer and other | 1.19 | 0.57 | |||||||||
Total loans, net of unearned income | 0.03 | % | 0.17 | % | |||||||
Loans at period-end | $ | 35,280,547 | $ | 33,171,233 | |||||||
Allowance for loan losses as a percentage of loans at period end | 0.71 | % | 0.84 | % | |||||||
Allowance for loan and unfunded loan-related commitment losses as a percentage of loans at period end | 0.85 | 0.97 | |||||||||
Allowance for loan and unfunded loan-related commitment losses as a percentage of loans at period end, excluding PPP loans | 0.86 | 1.08 |
March 31, | December 31, | March 31, | |||||||||||||||
(In thousands) | 2022 | 2021 | 2021 | ||||||||||||||
Accruing TDRs: | |||||||||||||||||
Commercial | $ | 2,773 | $ | 4,131 | $ | 7,536 | |||||||||||
Commercial real estate | 10,068 | 8,421 | 9,478 | ||||||||||||||
Residential real estate and other | 23,081 | 24,934 | 29,137 | ||||||||||||||
Total accruing TDRs | $ | 35,922 | $ | 37,486 | $ | 46,151 | |||||||||||
Non-accrual TDRs: (1) | |||||||||||||||||
Commercial | $ | 4,935 | $ | 6,746 | $ | 5,583 | |||||||||||
Commercial real estate | 2,050 | 2,050 | 1,309 | ||||||||||||||
Residential real estate and other | 1,964 | 3,027 | 3,540 | ||||||||||||||
Total non-accrual TDRs | $ | 8,949 | $ | 11,823 | $ | 10,432 | |||||||||||
Total TDRs: | |||||||||||||||||
Commercial | $ | 7,708 | $ | 10,877 | $ | 13,119 | |||||||||||
Commercial real estate | 12,118 | 10,471 | 10,787 | ||||||||||||||
Residential real estate and other | 25,045 | 27,961 | 32,677 | ||||||||||||||
Total TDRs | $ | 44,871 | $ | 49,309 | $ | 56,583 | |||||||||||
Three months ended March 31, 2022 (In thousands) | Commercial | Commercial Real Estate | Residential Real Estate and Other | Total | |||||||||||||||||||
Balance at beginning of period | $ | 10,877 | $ | 10,471 | $ | 27,961 | $ | 49,309 | |||||||||||||||
Additions during the period | 282 | 1,907 | 908 | 3,097 | |||||||||||||||||||
Reductions: | |||||||||||||||||||||||
Charge-offs | (10) | (3) | (217) | (230) | |||||||||||||||||||
Transferred to OREO and other repossessed assets | — | — | — | — | |||||||||||||||||||
Removal of TDR loan status (1) | (1,120) | — | (287) | (1,407) | |||||||||||||||||||
Payments received | (2,321) | (257) | (3,320) | (5,898) | |||||||||||||||||||
Balance at period end | $ | 7,708 | $ | 12,118 | $ | 25,045 | $ | 44,871 |
Three months ended March 31, 2021 (In thousands) | Commercial | Commercial Real Estate | Residential Real Estate and Other | Total | |||||||||||||||||||
Balance at beginning of period | $ | 18,190 | $ | 16,726 | $ | 33,276 | $ | 68,192 | |||||||||||||||
Additions during the period | 151 | 237 | 1,738 | 2,126 | |||||||||||||||||||
Reductions: | |||||||||||||||||||||||
Charge-offs | (1,409) | — | — | (1,409) | |||||||||||||||||||
Transferred to OREO and other repossessed assets | (99) | — | (459) | (558) | |||||||||||||||||||
Removal of TDR loan status (1) | — | (800) | (424) | (1,224) | |||||||||||||||||||
Payments received | (3,714) | (5,376) | (1,454) | (10,544) | |||||||||||||||||||
Balance at period end | $ | 13,119 | $ | 10,787 | $ | 32,677 | $ | 56,583 |
Three Months Ended | |||||||||||
(In thousands) | March 31, 2022 | March 31, 2021 | |||||||||
Balance at beginning of period | $ | 4,271 | $ | 16,558 | |||||||
Disposal/resolved | (2,497) | (2,162) | |||||||||
Transfers in at fair value, less costs to sell | 4,429 | 1,587 | |||||||||
Fair value adjustments | — | (170) | |||||||||
Balance at end of period | $ | 6,203 | $ | 15,813 |
Period End | |||||||||||||||||
(In thousands) | March 31, 2022 | December 31, 2021 | March 31, 2021 | ||||||||||||||
Residential real estate | $ | 1,127 | $ | 1,310 | $ | 2,713 | |||||||||||
Residential real estate development | — | — | 1,287 | ||||||||||||||
Commercial real estate | 5,076 | 2,961 | 11,813 | ||||||||||||||
Total | $ | 6,203 | $ | 4,271 | $ | 15,813 |
Time Certificates of Deposit Maturity/Re-pricing Analysis As of March 31, 2022 (Dollars in thousands) | Total Time Certificates of Deposits | Weighted-Average Rate of Maturing Time Certificates of Deposit (1) | ||||||||||||
1-3 months | $ | 777,783 | 0.35 | % | ||||||||||
4-6 months | 730,262 | 0.38 | ||||||||||||
7-9 months | 686,898 | 0.39 | ||||||||||||
10-12 months | 564,328 | 0.40 | ||||||||||||
13-18 months | 521,500 | 0.38 | ||||||||||||
19-24 months | 297,563 | 0.48 | ||||||||||||
24+ months | 157,661 | 0.53 | ||||||||||||
Total | $ | 3,735,995 | 0.39 | % |
Three Months Ended | |||||||||||||||||||||||||||||||||||
March 31, 2022 | December 31, 2021 | March 31, 2021 | |||||||||||||||||||||||||||||||||
(Dollars in thousands) | Balance | Percent | Balance | Percent | Balance | Percent | |||||||||||||||||||||||||||||
Non-interest-bearing | $ | 13,734,064 | 34 | % | $ | 13,640,270 | 33 | % | $ | 11,811,194 | 32 | % | |||||||||||||||||||||||
NOW and interest-bearing demand deposits | 4,287,228 | 10 | 3,962,739 | 10 | 3,493,451 | 9 | |||||||||||||||||||||||||||||
Wealth management deposits | 4,427,301 | 11 | 4,514,319 | 11 | 4,156,398 | 11 | |||||||||||||||||||||||||||||
Money market | 11,353,348 | 27 | 11,274,230 | 27 | 9,335,920 | 25 | |||||||||||||||||||||||||||||
Savings | 3,904,299 | 9 | 3,766,037 | 9 | 3,587,566 | 10 | |||||||||||||||||||||||||||||
Time certificates of deposit | 3,861,371 | 9 | 4,058,282 | 10 | 4,875,392 | 13 | |||||||||||||||||||||||||||||
Total average deposits | $ | 41,567,611 | 100 | % | $ | 41,215,877 | 100 | % | $ | 37,259,921 | 100 | % |
March 31, | December 31, | ||||||||||||||||||||||||||||
(Dollars in thousands) | 2022 | 2021 | 2021 | 2020 | 2019 | ||||||||||||||||||||||||
Total deposits | $ | 42,219,322 | $ | 37,872,652 | $ | 42,095,585 | $ | 37,092,651 | $ | 30,107,138 | |||||||||||||||||||
Brokered deposits | 2,541,159 | 2,142,257 | 1,591,083 | 1,843,227 | 1,011,404 | ||||||||||||||||||||||||
Brokered deposits as a percentage of total deposits | 6.0 | % | 5.7 | % | 3.8 | % | 5.0 | % | 3.4 | % |
Three Months Ended | |||||||||||||||||
March 31, | December 31, | March 31, | |||||||||||||||
(In thousands) | 2022 | 2021 | 2021 | ||||||||||||||
FHLB advances | $ | 1,241,071 | $ | 1,241,073 | $ | 1,228,433 | |||||||||||
Other borrowings: | |||||||||||||||||
Notes payable | 80,261 | 85,612 | 101,653 | ||||||||||||||
Short-term borrowings | 13,456 | 15,675 | 11,796 | ||||||||||||||
Secured borrowings | 337,590 | 337,192 | 339,923 | ||||||||||||||
Other | 62,960 | 63,454 | 64,816 | ||||||||||||||
Total other borrowings | $ | 494,267 | $ | 501,933 | $ | 518,188 | |||||||||||
Subordinated notes | 436,966 | 436,861 | 436,532 | ||||||||||||||
Junior subordinated debentures | 253,566 | 253,566 | 253,566 | ||||||||||||||
Total other funding sources | $ | 2,425,870 | $ | 2,433,433 | $ | 2,436,719 |
March 31, 2022 | December 31, 2021 | March 31, 2021 | |||||||||||||||
Tier 1 leverage ratio | 8.1 | % | 8.0 | % | 8.2 | % | |||||||||||
Risk-based capital ratios: | |||||||||||||||||
Tier 1 capital ratio | 9.6 | 9.6 | 10.2 | ||||||||||||||
Common equity tier 1 capital ratio | 8.6 | 8.6 | 9.0 | ||||||||||||||
Total capital ratio | 11.6 | 11.6 | 12.6 | ||||||||||||||
Other ratio: | |||||||||||||||||
Total average equity-to-total average assets(1) | 9.1 | 9.0 | 9.3 |
Minimum Capital Requirements | Minimum Ratio + Capital Conservation Buffer(1) | Minimum Well Capitalized(2) | |||||||||||||||
Leverage ratio | 4.0 | % | NA | N/A | |||||||||||||
Tier 1 capital to risk-weighted assets | 6.0 | 8.5 | 6.0 | ||||||||||||||
Common equity Tier 1 capital to risk-weighted assets | 4.5 | 7.0 | N/A | ||||||||||||||
Total capital to risk-weighted assets | 8.0 | 10.5 | 10.0 |
Static Shock Scenarios | +200 Basis Points | +100 Basis Points | -100 Basis Points | ||||||||||||||
March 31, 2022 | 21.4 | % | 11.0 | % | (11.3) | % | |||||||||||
December 31, 2021 | 25.3 | 12.4 | (8.5) | ||||||||||||||
March 31, 2021 | 22.0 | 10.2 | (7.2) |
Ramp Scenarios | +200 Basis Points | +100 Basis Points | -100 Basis Points | ||||||||||||||
March 31, 2022 | 11.2 | % | 5.8 | % | (7.1) | % | |||||||||||
December 31, 2021 | 13.9 | 6.9 | (5.6) | ||||||||||||||
March 31, 2021 | 10.7 | 5.4 | (3.6) |
101.INS | The XBRL Instance Document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document (1) | |||||||
101.SCH | XBRL Taxonomy Extension Schema Document | |||||||
101.CAL | XBRL Taxonomy Extension Calculation Linkbase Document | |||||||
101.LAB | XBRL Taxonomy Extension Label Linkbase Document | |||||||
101.PRE | XBRL Taxonomy Extension Presentation Linkbase Document | |||||||
101.DEF | XBRL Taxonomy Extension Definition Linkbase Document | |||||||
104 | Cover Page Interactive Data File (formatted as Inline XBRL and contained in Exhibit 101) |
WINTRUST FINANCIAL CORPORATION (Registrant) | ||||||||||||||
Date: | May 6, 2022 | /s/ DAVID L. STOEHR | ||||||||||||
David L. Stoehr | ||||||||||||||
Executive Vice President and Chief Financial Officer (Principal Financial and Accounting Officer and duly authorized officer) |
/s/ EDWARD J. WEHMER | ||
Name: Edward J. Wehmer | ||
Title: Founder and Chief Executive Officer |
/s/ DAVID L. STOEHR | ||
Name: David L. Stoehr | ||
Title: Executive Vice President and Chief Financial Officer |
/s/ EDWARD J. WEHMER | ||
Name: Edward J. Wehmer | ||
Title: Founder and Chief Executive Officer | ||
Date: May 6, 2022 |
/s/ DAVID L. STOEHR | ||
Name: David L. Stoehr | ||
Title: Executive Vice President and Chief Financial Officer | ||
Date: May 6, 2022 |