Wintrust Financial Corporation Reports Record Third Quarter 2020 Net Income of $107.3 million and Year-to-Date Net Income of $191.8 million

Wintrust Financial Corporation
·35-min read

ROSEMONT, Ill., Oct. 21, 2020 (GLOBE NEWSWIRE) -- Wintrust Financial Corporation (Wintrust, the Company or "we") (Nasdaq: WTFC) announced record net income of $107.3 million or $1.67 per diluted common share for the third quarter of 2020, an increase in diluted earnings per common share of 391% compared to the second quarter of 2020 and a decrease of 1% compared to the third quarter of 2019. The Company recorded net income of $191.8 million or $3.06 per diluted common share for the first nine months of 2020 compared to net income of $269.7 million or $4.60 per diluted common share for the same period of 2019.

Highlights of the Third Quarter of 2020:
Comparative information to the second quarter of 2020

  • Total assets increased by $192 million.

  • Total loans increased by $733 million.

  • Total deposits increased by $193 million.

  • Net interest income decreased by $7.2 million primarily due to lower Paycheck Protection Program ("PPP") loan fee accretion as a result of changes to the estimated timing of loan forgiveness. The Company recognized $17.4 million of PPP loan fee accretion in the third quarter of 2020 as compared to $25.1 million in the prior quarter. As of September 30, 2020, the Company had approximately $49.3 million of PPP loan fees that have yet to be recognized in income.

  • The loans to deposits ratio ended the third quarter of 2020 at 89.7% as compared to 88.1% as of the prior quarter end. Excluding PPP loans, the loans to deposits ratio ended the third quarter of 2020 at 80.2%.

  • Mortgage banking revenue increased by $6.2 million to $108.5 million for the third quarter of 2020 as compared to $102.3 million in the prior quarter.

    • Loans originated for sale in the third quarter of 2020 totaled $2.2 billion, essentially unchanged from the prior quarter.

  • Outstanding COVID-19 related loan modifications for customers totaled approximately $413 million or 1.4% of total loans, excluding PPP loans, as of September 30, 2020 as compared to $1.7 billion or 6.2% as of June 30, 2020.

  • Provision for credit losses totaled $25.0 million in the third quarter of 2020 as compared to $135.1 million in the second quarter of 2020.

  • Recorded net charge-offs of $9.3 million in the third quarter of 2020, of which $6.4 million were reserves on individually assessed loans as of the prior quarter end, as compared to net charge-offs of $15.4 million in the second quarter of 2020. Net charge-offs as a percentage of average total loans, totaled 12 basis points in the third quarter of 2020 on an annualized basis compared to 20 basis points on an annualized basis in the second quarter of 2020.

  • The allowance for credit losses on our core loan portfolio is approximately 1.88% of the outstanding balance as of September 30, 2020, up from 1.85% as of the prior quarter end. See Table 12 for more information.

  • Non-performing assets totaled $182.3 million, or 0.42% of total assets, as of September 30, 2020 as compared to $198.5 million, or 0.46% of total assets, as of the prior quarter end.

Other items of note from the third quarter of 2020

  • Recorded a decrease in the value of mortgage servicing rights related to changes in fair value model assumptions, net of derivative contract activity held as an economic hedge, of $3.0 million in the third quarter of 2020 as compared to a decline of $7.4 million in the prior quarter.

  • Agreed to settle long standing recourse obligation disputes which resulted in an additional accrual of $3.1 million in the third quarter of 2020, recorded as a reduction to other mortgage banking revenue.

  • Accrued $6.3 million of contingent consideration expense related to the previous acquisition of mortgage operations in the third quarter of 2020 as compared to $7.2 million in the prior quarter, which was recorded in other non-interest expense.

  • Recorded acquisition related costs of $132,000 in the third quarter of 2020 as compared to $4.9 million in the prior quarter.

  • Recorded a $9.0 million state income tax benefit in the third quarter of 2020 related to the settlement of an uncertain tax position. Net of the federal tax impact, the reduction to income tax expense was $7.1 million.

Edward J. Wehmer, Founder and Chief Executive Officer, commented, "I remain very proud of the extraordinary effort put forth by our employees to support our customers and our communities amid the challenges of COVID-19. Wintrust reported record net income of $107.3 million for the third quarter of 2020, up from $21.7 million in the second quarter of 2020. The third quarter of 2020 was characterized by strong loan growth, declining net interest income primarily due to lower PPP loan fee accretion, strong mortgage banking revenue, increased allowance for credit losses coverage and a continued focus to increase franchise value in our market area."

Mr. Wehmer continued, "The Company grew total loans by $733 million or 9%, on an annualized basis, in the third quarter of 2020 as compared to the second quarter of 2020. The Company experienced growth in its commercial, commercial real estate and premium finance receivable portfolios. In addition, the Company originated approximately $27 million of PPP loans in the third quarter of 2020. Our loan pipelines remain strong and we expect to continue to grow loans in the fourth quarter of 2020 without compromising our credit standards. Total deposits increased by $193 million as compared to the second quarter of 2020 including $205 million of non-interest bearing deposit growth. We continue to emphasize growing our franchise including gathering low cost deposits which we believe will drive value in the long term. We have accumulated excess liquidity in recent quarters and believe that, if conditions allow for suitable deployment of such excess liquidity, we could potentially increase our net interest margin by 10-25 basis points, depending on the mix of earning assets of such reinvestment. Our loans to deposits ratio ended the quarter at 89.7% and we believe that we have sufficient liquidity to meet customer loan demand."

Mr. Wehmer commented, "Net interest income decreased in the third quarter of 2020 primarily due to lower PPP loan fee accretion as a result of changes to the estimated timing of loan forgiveness. The Company recognized $17.4 million of PPP loan fee accretion in third quarter of 2020 as compared to $25.1 million in the prior quarter. Excluding the impact of PPP fees, the Company effectively offset the net interest margin impact of declining earning asset yields through downward repricing of interest-bearing deposits. We expect that, absent changes to the level of PPP loan fee accretion, we can continue to mitigate loan yield compression with deposit repricing in the fourth quarter of 2020. Further, to the extent we identify prudent opportunities to deploy excess liquidity, we may be able to improve net interest margin."

Mr. Wehmer noted, Our mortgage banking business delivered another record quarter of mortgage banking revenue in light of the demand associated with historically low long-term interest rates. Loan volumes originated for sale in the third quarter of 2020 were $2.2 billion, essentially unchanged from the second quarter of 2020. As a result of increases in both current and forecasted revenues given the favorable mortgage banking environment, the Company recorded increased contingent consideration expense related to the previous acquisition of mortgage operations. Additionally, the Company recorded a $3.0 million decrease in the value of mortgage servicing rights related to changes in fair value model assumptions. We are leveraging efficiencies in our delivery channels and staffing strategies to keep pace with unprecedented demand. The strong quarter of mortgage performance contributed to reporting a 0.87% net overhead ratio for the third quarter of 2020. We believe the fourth quarter of 2020 will provide another strong quarter for mortgage banking production."

Commenting on credit quality, Mr. Wehmer stated, "The Company recorded provision for credit losses of $25.0 million in the third quarter increasing our allowance for credit losses. The allowance for credit losses on our core loan portfolio as of September 30, 2020 is approximately 1.88% of the outstanding balance. Net charge-offs totaled $9.3 million in the third quarter of 2020, of which $6.4 million were reserves on individually assessed loans as of the prior quarter end, as compared to $15.4 million in the second quarter of 2020. Additionally, the level of non-performing assets decreased by $16.2 million to $182.3 million. We believe that the Companys reserves remain appropriate and we remain diligent in our review of credit."

Mindful of the challenges ahead, Mr. Wehmer noted, "We leverage robust capital and liquidity management frameworks, which include stress testing processes, to assess and monitor risk and inform decision making. The Company's capital ratios were stable in the third quarter of 2020 as net income supported asset growth. We believe the Company's capital levels remain adequate and will evaluate if it is prudent to resume repurchasing common stock."

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

The graphs below illustrate certain financial highlights of the third quarter of 2020. See "Supplemental Non-GAAP Financial Measures/Ratios" at Table 18 for additional information with respect to non-GAAP financial measures/ratios, including the reconciliations to the corresponding GAAP financial measures/ratios.

Graphs available at the following link:  http://ml.globenewswire.com/Resource/Download/6ccf49fe-326a-4af9-87b2-479bbf0543ee

SUMMARY OF RESULTS:

BALANCE SHEET

Total asset growth of $192 million in the third quarter of 2020 was primarily comprised of a $733 million increase in loans, partially offset by a $417 million decrease in investment securities and a $189 million decrease in interest-bearing deposits with banks. The $733 million increase in loans is comprised of a $418 million increase in commercial loans, a $222 million increase in commercial real estate loans and a $148 million increase in premium finance receivables. The $417 million decrease in investment securities was primarily due to accelerated prepayments and exercised embedded call options. The Company believes that the $3.8 billion of interest-bearing deposits with banks held as of September 30, 2020 provides more than sufficient liquidity to operate its business plan.

Total liabilities increased $108 million in the third quarter of 2020 resulting primarily from a $193 million increase in total deposits. The increase in deposits includes a $272 million increase in MaxSafe money market deposits and a $205 million increase in non-interest-bearing deposits, partially offset by a $197 million decrease in wealth management deposits. Our loans to deposits ratio ended the quarter at 89.7%. Management believes in substantially funding the Company's balance sheet with core deposits and utilizes brokered or wholesale funding sources as appropriate to manage its liquidity position as well as for interest rate risk management purposes.

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

NET INTEREST INCOME

For the third quarter of 2020, net interest income totaled $255.9 million, a decrease of $7.2 million as compared to the second quarter of 2020 and a decrease of $8.9 million as compared to the third quarter of 2019. The $7.2 million decrease in net interest income in the third quarter of 2020 compared to the second quarter of 2020 was primarily due to $7.7 million less PPP loan fee accretion in the third quarter of 2020.

Net interest margin was 2.56% (2.57% on a fully taxable-equivalent basis, non-GAAP) during the third quarter of 2020 compared to 2.73% (2.74% on a fully taxable-equivalent basis, non-GAAP) during the second quarter of 2020 and 3.37% (3.39% on a fully taxable-equivalent basis, non-GAAP) during the third quarter of 2019. The 17 basis point decrease in net interest margin in the third quarter of 2020 as compared to the second quarter of 2020 was attributable to a 32 basis point decline in the yield on earning assets and a four basis point decrease in the net free funds contribution partially offset by a 19 basis point decrease in the rate paid on interest-bearing liabilities. The 32 basis point decline in the yield on earning assets in the third quarter of 2020 as compared to the second quarter of 2020 was in part due to a 14 basis point impact attributed to the declining yield on PPP loans. The remaining 18 basis point decrease in earning asset yields, primarily due to declining loan yields, excluding PPP, was more than offset by a 19 basis point decrease in the rate paid on interest-bearing liabilities. The decrease in the rate paid on interest-bearing liabilities in the third quarter of 2020 as compared to the prior quarter is primarily due to a 20 basis point decrease in the rate paid on interest-bearing deposits as management initiated various deposit rate reductions given the low interest rate environment.

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

ASSET QUALITY

The allowance for credit losses totaled $389.0 million as of September 30, 2020 an increase of $15.8 million as compared to $373.2 million as of June 30, 2020. The allowance for credit losses increased primarily due to portfolio changes partially offset by changes in the macroeconomic forecasted conditions which contributed to decrease reserves. Consistent with the recovery in economic activity since the end of the second quarter of 2020, the Company's third quarter of 2020 macroeconomic forecasts of key model inputs (Gross Domestic Product, Baa Corporate Credit spreads, Dow Jones Total Stock Market Index and Commercial Real Estate Price Index) assume an improvement in the economic outlook compared to the macroeconomic forecasts used in the second quarter of 2020. While the uncertainties around the path of the recovery are still present, the third quarter of 2020 macroeconomic forecasts assume that the impact of those uncertainties on economic growth is relatively less severe compared to that assumed in the prior quarter. The Commercial, Industrial and Other portfolio realized a decrease in the allowance for credit losses as compared to the prior quarter-end, which was primarily driven by improving Dow Jones Total Stock Market Index and Baa Corporate Credit spread macroeconomic scenario variables. A deterioration in the CRE Price Index for the first portion of the Reasonable & Supportable period was a primary driver of increases in the allowance for credit losses of the Commercial Real Estate portfolios. Other key drivers of allowance for credit losses changes in these portfolios include, but are not limited to, net new loan growth and loan risk rating migration.

The provision for credit losses totaled $25.0 million for the third quarter of 2020 compared to $135.1 million for the second quarter of 2020 and $10.8 million for the third quarter of 2019. For more information regarding the provision for credit losses, see Table 11 in this report.

Management believes the allowance for credit losses is appropriate to account for expected credit losses. The Current Expected Credit Losses ("CECL") standard requires the Company to estimate expected credit losses over the life of the Companys financial assets at a certain point in time. There can be no assurances, however, that future losses will not significantly exceed the amounts provided for, thereby affecting future results of operations. A summary of the allowance for credit losses calculated for the loan components in the core loan portfolio, the niche and consumer loan portfolio and the purchased loan portfolio as of September 30, 2020, June 30, 2020 and March 31, 2020 is shown on Table 12 of this report.

Net charge-offs totaled $9.3 million in the third quarter of 2020, a $6.1 million decrease from $15.4 million in the second quarter of 2020 and a $165,000 decrease from $9.4 million in the third quarter of 2019. Net charge-offs as a percentage of average total loans, totaled 12 basis points in the third quarter of 2020 on an annualized basis compared to 20 basis points on an annualized basis in the second quarter of 2020 and 15 basis points on an annualized basis in the third quarter of 2019. For more information regarding net charge-offs, see Table 10 in this report.

As of September 30, 2020, $49.9 million of all loans, or 0.2%, were 60 to 89 days past due and $186.5 million, or 0.6%, were 30 to 59 days (or one payment) past due. As of June 30, 2020, $79.3 million of all loans, or 0.3%, were 60 to 89 days past due and $166.4 million, or 0.5%, were 30 to 59 days (or one payment) past due. Many of the commercial and commercial real-estate loans shown as 60 to 89 days and 30 to 59 days past due are included on the Companys internal problem loan reporting system. Loans on this system are closely monitored by management on a monthly basis.

The Companys home equity and residential real estate loan portfolios continue to exhibit low delinquency rates as of September 30, 2020. Home equity loans at September 30, 2020 that are current with regard to the contractual terms of the loan agreement represent 98.3% of the total home equity portfolio. Residential real estate loans at September 30, 2020 that are current with regards to the contractual terms of the loan agreements comprised 98.2% of total residential real estate loans outstanding. For more information regarding past due loans, see Table 13 in this report.

Outstanding COVID-19 related loan modifications for customers totaled approximately $413 million or 1.4% of total loans, excluding PPP loans as of September 30, 2020 as compared to $1.7 billion or 6.2% as of June 30, 2020. The outstanding modifications primarily changed terms to interest-only payments.

The ratio of non-performing assets to total assets was 0.42% as of September 30, 2020, compared to 0.46% at June 30, 2020, and 0.38% at September 30, 2019. Non-performing assets totaled $182.3 million at September 30, 2020, compared to $198.5 million at June 30, 2020 and $132.0 million at September 30, 2019. Non-performing loans totaled $173.1 million, or 0.54% of total loans, at September 30, 2020 compared to $188.3 million, or 0.60% of total loans, at June 30, 2020 and $114.3 million, or 0.44% of total loans, at September 30, 2019. The decrease in non-performing loans as of September 30, 2020 as compared to June 30, 2020 is primarily due to an $18.8 million decrease in total non-performing premium finance receivable balances. State emergency orders and pandemic delays on processing of return premiums, which serve as our collateral, contributed to the increase in 90 day past due premium finance receivables in the second quarter of 2020. As state emergency orders expired in the third quarter of 2020, many of the non-performing premium finance receivables were modified and returned to current as of September 30, 2020. Other real estate owned ("OREO") of $9.2 million at September 30, 2020 decreased by $1.0 million compared to $10.2 million at June 30, 2020 and decreased $8.3 million compared to $17.5 million at September 30, 2019. Management is pursuing the resolution of all non-performing assets. At this time, management believes OREO is appropriately valued at the lower of carrying value or fair value less estimated costs to sell. For more information regarding non-performing assets, see Table 14 in this report.

NON-INTEREST INCOME

Wealth management revenue increased by $2.3 million during the third quarter of 2020 as compared to the second quarter of 2020 primarily due to increased asset management fees and brokerage commissions. Wealth management revenue is comprised of the trust and asset management revenue of The Chicago Trust Company and Great Lakes Advisors, the brokerage commissions, managed money fees and insurance product commissions at Wintrust Investments and fees from tax-deferred like-kind exchange services provided by the Chicago Deferred Exchange Company.

Mortgage banking revenue increased by $6.2 million in the third quarter of 2020 as compared to the second quarter of 2020, primarily due to a $5.8 million increase in revenue related to mortgage servicing rights activity. Loans originated for sale were $2.2 billion in the third quarter of 2020, essentially unchanged from the second quarter of 2020. The percentage of origination volume from refinancing activities was 59% in the third quarter of 2020 as compared to 70% in the second quarter of 2020. Mortgage banking revenue includes revenue from activities related to originating, selling and servicing residential real estate loans for the secondary market.

During the third quarter of 2020, the fair value of the mortgage servicing rights portfolio increased primarily due to increased capitalization of $20.9 million during the third quarter. This increase was partially offset by a negative fair value adjustment of $3.0 million as well as a reduction in value of $7.9 million due to payoffs and paydowns of the existing portfolio. The Company entered into interest rate swaps at the beginning of the fourth quarter of 2019 to economically hedge a portion of the potential negative fair value changes recorded in earnings related to its mortgage servicing rights portfolio. During the second quarter of 2020, the Company terminated the interest rate swaps. No economic hedges were outstanding relative to the mortgage servicing rights portfolio as of September 30, 2020 or June 30, 2020.

Other non-interest income decreased by $1.4 million in the third quarter of 2020 as compared to the second quarter of 2020 primarily due to lower swap fees with commercial clients.

For more information regarding non-interest income, see Tables 15 and 16 in this report.

NON-INTEREST EXPENSE

Salaries and employee benefits expense increased by $9.9 million in the third quarter of 2020 as compared to the second quarter of 2020. The $9.9 million increase is comprised of an increase of $4.8 million in employee benefits expense, an increase of $2.8 million in salaries expense, and an increase of $2.3 million in commissions and incentive compensation. The increase in employee benefits expense is primarily due to increases in employee insurance expense related to higher medical claims in the third quarter of 2020. The increase in salaries expense is primarily related to increased staffing costs to support mortgage origination. The increase in commissions and incentive compensation is primarily due to a reversal of expense associated with the Company's long term incentive program recorded in the second quarter of 2020.

Equipment expense totaled $17.3 million in the third quarter of 2020, an increase of $1.4 million as compared to the second quarter of 2020. This increase is primarily due to increased software licensing expenses.

Professional fees totaled $6.5 million in the third quarter of 2020, a decrease of $1.2 million as compared to the second quarter of 2020. The decrease in the third quarter relates primarily to lower legal and consulting fees during the period. Professional fees include legal, audit and tax fees, external loan review costs, consulting arrangements and normal regulatory exam assessments.

Data processing expenses totaled $5.7 million in the third quarter of 2020, a decrease of $4.7 million as compared to the second quarter of 2020. The decrease in the third quarter relates primarily to conversion costs of $4.5 million associated with the Countryside Bank acquisition recognized in the second quarter of 2020.

Miscellaneous expense in the third quarter of 2020 increased $1.1 million as compared to the second quarter of 2020. The increase in the third quarter is primarily due to higher loan expenses. The third quarter of 2020 included $6.3 million of contingent consideration expense related to the previous acquisition of mortgage operations as compared to $7.2 million in the prior quarter. The liability for contingent consideration expense related to the previous acquisition of mortgage operations is based upon forward looking mortgage origination volumes and the estimated profitability of that operation. Should those assumptions change going forward, the liability may need to be increased or decreased. The contractual period covering contingent consideration ends in January 2023. Miscellaneous expense also includes ATM expenses, correspondent bank charges, directors fees, telephone, travel and entertainment, corporate insurance, dues and subscriptions, problem loan expenses and lending origination costs that are not deferred.

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

INCOME TAXES

The Company recorded income tax expense of $30.0 million in the third quarter of 2020 compared to $9.0 million in the second quarter of 2020 and $35.5 million in the third quarter of 2019. The effective tax rates were 21.83% in the third quarter of 2020 compared to 29.46% in the second quarter of 2020 and 26.36% in the third quarter of 2019. The effective tax rate in the third quarter of 2020 reflects a $9.0 million state income tax benefit related to the settlement of an uncertain tax position. Net of the federal tax impact, the reduction to income tax expense was $7.1 million.

B USINESS UNIT SUMMARY

Community Banking

Through its community banking unit, the Company provides banking and financial services primarily to individuals, small to mid-sized businesses, local governmental units and institutional clients residing primarily in the local areas the Company services. In the third quarter of 2020, this unit expanded its loan and deposit portfolios. However, the banking segment also experienced net interest margin compression primarily due to lower PPP loan fee accretion in the third quarter of 2020 as compared to the second quarter of 2020.

Mortgage banking revenue was $108.5 million for the third quarter of 2020 an increase of $6.2 million as compared to the second quarter of 2020 primarily due to a $5.8 million increase in revenue related to mortgage servicing rights activity. Services charges on deposit accounts totaled $11.5 million in the third quarter of 2020 an increase of $1.1 million as compared to the second quarter of 2020 primarily due to higher account analysis and overdraft fees. The Company's gross commercial and commercial real estate loan pipelines remained strong as of September 30, 2020. Before the impact of scheduled payments and prepayments, gross commercial and commercial real estate loan pipelines were estimated to be approximately $1.3 billion to $1.5 billion at September 30, 2020. When adjusted for the probability of closing, the pipelines were estimated to be approximately $850 million to $950 million at September 30, 2020.

Specialty Finance

Through its specialty finance unit, the Company offers financing of insurance premiums for businesses and individuals, equipment financing through structured loans and lease products to customers in a variety of industries, accounts receivable financing and value-added, out-sourced administrative services and other services. Originations within the insurance premium financing receivables portfolio were $2.8 billion during the third quarter of 2020 and average balances increased by $582.1 million as compared to the second quarter of 2020. The increase in average balances was more than offset by margin compression in this portfolio resulting in a $1.3 million decrease in interest income attributed to the lower market rates of interest associated with the insurance premium finance receivables portfolio. The Company's leasing business grew during the third quarter of 2020, with its portfolio of assets, including capital leases, loans and equipment on operating leases, increasing by $20.3 million to $2.0 billion at the end of the third quarter of 2020. Revenues from the Company's out-sourced administrative services business were $1.1 million in the third quarter of 2020, an increase of $144,000 from the second quarter of 2020.

Wealth Management

Through four separate subsidiaries within its wealth management unit, the Company offers a full range of wealth management services, including trust and investment services, tax-deferred like-kind exchange services, asset management, securities brokerage services and 401(k) and retirement plan services. Wealth management revenue increased by $2.3 million in the third quarter of 2020 compared to the second quarter of 2020, totaling $25.0 million in the third quarter of 2020. Increases in asset management fees were primarily due to favorable equity market performance during the third quarter of 2020. At September 30, 2020, the Companys wealth management subsidiaries had approximately $28.2 billion of assets under administration, which included $3.5 billion of assets owned by the Company and its subsidiary banks, representing a $1.2 billion increase from the $27.0 billion of assets under administration at June 30, 2020.

ITEMS IMPACTING COMPARATIVE FINANCIAL RESULTS

Paycheck Protection Program

On March 27, 2020, the President of the United States signed the CARES Act which authorized the Small Business Administration ("SBA") to guarantee loans under the PPP for small businesses who meet the necessary eligibility requirements in order to keep their workers on the payroll. The Company began accepting applications on April 3, 2020. As of September 30, 2020, the Company secured authorization from the SBA and funded over 12,000 PPP loans with a carrying balance of approximately $3.4 billion.

Acquisitions

On November 1, 2019, the Company completed its acquisition of SBC, Incorporated (SBC).  SBC was the parent company of Countryside Bank. Through this business combination, the Company acquired Countryside Bank's six banking offices located in Countryside, Burbank, Darien, Homer Glen, Oak Brook and Chicago, Illinois. As of the acquisition date, the Company acquired approximately $620 million in assets, including approximately $423 million in loans, and approximately $508 million in deposits. The Company recorded goodwill of approximately $40 million on the acquisition.

On October 7, 2019, the Company completed its acquisition of STC Bancshares Corp. (STC).  STC was the parent company of STC Capital Bank. Through this business combination, the Company acquired STC Capital Bank's five banking offices located in the communities of St. Charles, Geneva and South Elgin, Illinois. As of the acquisition date, the Company acquired approximately $250 million in assets, including approximately $174 million in loans, and approximately $201 million in deposits. The Company recorded goodwill of approximately $19 million on the acquisition.

On May 24, 2019, the Company completed its acquisition of Rush-Oak Corporation ("ROC"). ROC was the parent company of Oak Bank. Through this business combination, the Company acquired Oak Bank's one banking location in Chicago, Illinois. As of the acquisition date, the Company acquired approximately $223 million in assets, including approximately $125 million in loans, and approximately $161 million in deposits. The Company recorded goodwill of approximately $12 million on the acquisition.

Adoption of New Credit Losses Accounting Standard

Beginning in 2020, the Company adopted CECL, which impacted the measurement of the Companys allowance for credit losses (including the allowance for unfunded lending-related commitments). CECL replaced the previous incurred loss methodology, which delayed recognition until such loss was probable, with a methodology that reflects an estimate of lifetime expected credit losses considering current economic condition and forecasts. Though other assets, including investment securities and other receivables, were considered in-scope of the standard and required a measurement of the allowance for credit loss, the most significant impact of CECL remains within the Companys loan portfolios and related lending commitments. For more information regarding the adoption of CECL, see the "Asset Quality" section and the asset quality Tables 10-14 in this report.

WINTRUST FINANCIAL CORPORATION
Key Operating Measures

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

 

 

Three Months Ended   

% or (1)
basis point  ( bp )
change from

 

% or
basis point  ( bp )
change from

(Dollars in thousands, except per share data)

 


Sep 30, 2020

 

Jun 30, 2020

 

Sep 30, 2019

2nd Quarter
2020    

 

3rd Quarter
2019    

Net income

 

$

107,315

 

 

$

21,659

 

 

$

99,121

 

395

 

%

 

8

 

%

Pre-tax income, excluding provision for credit losses (non-GAAP) (2)

 

162,310

 

 

165,756

 

 

145,435

 

(2

)

 

 

12

 

 

Net income per common share diluted

 

1.67

 

 

0.34

 

 

1.69

 

391

 

 

 

(1

)

 

Net revenue (3)

 

426,529

 

 

425,124

 

 

379,989

 

 

 

 

12

 

 

Net interest income

 

255,936

 

 

263,131

 

 

264,852

 

(3

)

 

 

(3

)

 

Net interest margin

 

2.56

%

 

2.73

%

 

3.37

%

(17

)

bp

 

(81

)

bp

Net interest margin - fully taxable equivalent (non-GAAP) (2)

 

2.57

 

 

2.74

 

 

3.39

 

(17

)

 

 

(82

)

 

Net overhead ratio (4)

 

0.87

 

 

0.93

 

 

1.40

 

(6

)

 

 

(53

)

 

Return on average assets

 

0.99

 

 

0.21

 

 

1.16

 

78

 

 

 

(17

)

 

Return on average common equity

 

10.66

 

 

2.17

 

 

11.42

 

849

 

 

 

(76

)

 

Return on average tangible common equity (non-GAAP) (2)

 

13.43

 

 

2.95

 

 

14.36

 

1,048

 

 

 

(93

)

 

At end of period

 

 

 

 

 

 

 

 

 

 

 

Total assets

 

$

43,731,718

 

 

$

43,540,017

 

 

$

34,911,902

 

2

 

%

 

25

 

%

Total loans (5)

 

32,135,555

 

 

31,402,903

 

 

25,710,171

 

9

 

 

 

25

 

 

Total deposits

 

35,844,422

 

 

35,651,874

 

 

28,710,379

 

2

 

 

 

25

 

 

Total shareholders equity

 

4,074,089

 

 

3,990,218

 

 

3,540,325

 

8

 

 

 

15

 

 

(1)   Period-end balance sheet percentage changes are annualized.
(2)   See "Supplemental Non-GAAP Financial Measures/Ratios" at Table 18 for additional information on this performance measure/ratio.
(3)   Net revenue is net interest income plus non-interest income.
(4)   The net overhead ratio is calculated by netting total non-interest expense and total non-interest income, annualizing this amount, and dividing by that period's average total assets. A lower ratio indicates a higher degree of efficiency.
(5)   Excludes mortgage loans held-for-sale.

Certain returns, yields, performance ratios, or quarterly growth rates are annualized in this presentation to represent an annual time period. This is done for analytical purposes to better discern, for decision-making purposes, underlying performance trends when compared to full-year or year-over-year amounts. For example, a 5% growth rate for a quarter would represent an annualized 20% growth rate. Additional supplemental financial information showing quarterly trends can be found on the Companys website at www.wintrust.com  by choosing Financial Reports under the Investor Relations heading, and then choosing Financial Highlights.

 

WINTRUST FINANCIA L CORPORATION
Selected Financial Highlights

 

 

Three Months Ended

Nine Months Ended

(Dollars in thousands, except per share data)

 

Sep 30,
2020

 

Jun 30,
2020

 

Mar 31,
2020

 

Dec 31,
2019

 

Sep 30,
2019

Sep 30,
2020

 

Sep 30,
2019

Selected Financial Condition Data (at end of period):

 

 

 

Total assets

 

$

43,731,718

 

 

$

43,540,017

 

 

$

38,799,847

 

 

$

36,620,583

 

 

$

34,911,902

 

 

 

 

Total loans (1)

 

32,135,555

 

 

31,402,903

 

 

27,807,321

 

 

26,800,290

 

 

25,710,171

 

 

 

 

Total deposits

 

35,844,422

 

 

35,651,874

 

 

31,461,660

 

 

30,107,138

 

 

28,710,379

 

 

 

 

Junior subordinated debentures

 

253,566

 

 

253,566

 

 

253,566

 

 

253,566

 

 

253,566

 

 

 

 

Total shareholders equity

 

4,074,089

 

 

3,990,218

 

 

3,700,393

 

 

3,691,250

 

 

3,540,325

 

 

 

 

Selected Statements of Income Data:

 

 

 

Net interest income

 

$

255,936

 

 

$

263,131

 

 

$

261,443

 

 

$

261,879

 

 

$

264,852

 

$

780,510

 

 

$

793,040

 

Net revenue (2)

 

426,529

 

 

425,124

 

 

374,685

 

 

374,099

 

 

379,989

 

1,226,338

 

 

1,087,992

 

Net income

 

107,315

 

 

21,659

 

 

62,812

 

 

85,964

 

 

99,121

 

191,786

 

 

269,733

 

Pre-tax income, excluding provision for credit losses (non-GAAP) (3)

 

162,310

 

 

165,756

 

 

140,044

 

 

124,508

 

 

145,435

 

468,110

 

 

409,457

 

Net income per common share Basic

 

1.68

 

 

0.34

 

 

1.05

 

 

1.46

 

 

1.71

 

3.08

 

 

4.65

 

Net income per common share Diluted

 

1.67

 

 

0.34

 

 

1.04

 

 

1.44

 

 

1.69

 

3.06

 

 

4.60

 

Selected Financial Ratios and Other Data:

 

 

 

Performance Ratios:

 

 

 

Net interest margin

 

2.56

%

 

2.73

%

 

3.12

%

 

3.17

%

 

3.37

%

2.79

%

 

3.56

%

Net interest margin - fully taxable equivalent (non-GAAP) (3)

 

2.57

 

 

2.74

 

 

3.14

 

 

3.19

 

 

3.39

 

2.80

 

 

3.58

 

Non-interest income to average assets

 

1.58

 

 

1.55

 

 

1.24

 

 

1.25

 

 

1.35

 

1.47

 

 

1.22

 

Non-interest expense to average assets

 

2.45

 

 

2.48

 

 

2.58

 

 

2.78

 

 

2.74

 

2.50

 

 

2.80

 

Net overhead ratio (4)

 

0.87

 

 

0.93

 

 

1.33

 

 

1.53

 

 

1.40

 

1.03

 

 

1.58

 

Return on average assets

 

0.99

 

 

0.21

 

 

0.69

 

 

0.96

 

 

1.16

 

0.63

 

 

1.11

 

Return on average common equity

 

10.66

 

 

2.17

 

 

6.82

 

 

9.52

 

 

11.42

 

6.56

 

 

10.74

 

Return on average tangible common equity (non-GAAP) (3)

 

13.43

 

 

2.95

 

 

8.73

 

 

12.17

 

 

14.36

 

8.38

 

 

13.60

 

Average total assets

 

$

42,962,844

 

 

$

42,042,729

 

 

$

36,625,490

 

 

$

35,645,190

 

 

$

33,954,592

 

$

40,552,517

 

 

$

32,418,875

 

Average total shareholders equity

 

4,034,902

 

 

3,908,846

 

 

3,710,169

 

 

3,622,184

 

 

3,496,714

 

3,885,187

 

 

3,407,398

 

Average loans to average deposits ratio

 

89.6

%

 

87.8

%

 

90.1

%

 

88.8

%

 

90.6

%

89.1

%

 

92.4

%

Period-end loans to deposits ratio

 

89.7

 

 

88.1

 

 

88.4

 

 

89.0

 

 

89.6

 

 

 

 

Common Share Data at end of period:

 

 

 

Market price per common share

 

$

40.05

 

 

$

43.62

 

 

$

32.86

 

 

$

70.90

 

 

$

64.63

 

 

 

 

Book value per common share

 

63.57

 

 

62.14

 

 

62.13

 

 

61.68

 

 

60.24

 

 

 

 

Tangible book value per common share (non-GAAP) (3)

 

51.70

 

 

50.23

 

 

50.18

 

 

49.70

 

 

49.16

 

 

 

 

Common shares outstanding

 

57,601,991

 

 

57,573,672

 

 

57,545,352

 

 

57,821,891

 

 

56,698,429

 

 

 

 

Other Data at end of period:

 

 

 

Tier 1 leverage ratio (5)

 

8.2

%

 

8.1

%

 

8.5

%

 

8.7

%

 

8.8

%

 

 

 

Risk-based capital ratios:

 

 

 

 

 

 

 

 

 

 

 

 

 

Tier 1 capital ratio (5)

 

10.1

 

 

10.1

 

 

9.3

 

 

9.6

 

 

9.7

 

 

 

 

Common equity tier 1 capital ratio (5)

 

8.9

 

 

8.8

 

 

8.9

 

 

9.2

 

 

9.3

 

 

 

 

Total capital ratio (5)

 

12.8

 

 

12.8

 

 

11.9

 

 

12.2

 

 

12.4

 

 

 

 

Allowance for credit losses (6)

 

$

388,971

 

 

$

373,174

 

 

$

253,482

 

 

$

158,461

 

 

$

163,273

 

 

 

 

Allowance for loan and unfunded lending-related commitment losses to total loans

 

1.21

%

 

1.19

%

 

0.91

%

 

0.59

%

 

0.64

%

 

 

 

Number of:

 

 

 

 

 

 

 

 

 

 

 

 

 

Bank subsidiaries

 

15

 

 

15

 

 

15

 

 

15

 

 

15

 

 

 

 

Banking offices

 

182

 

 

186

 

 

187

 

 

187

 

 

174

 

 

 

 

(1)   Excludes mortgage loans held-for-sale.
(2)   Net revenue includes net interest income and non-interest income.
(3)   See Supplemental Non-GAAP Financial Measures/Ratios at Table 18 for additional information on this performance measure/ratio.
(4)   The net overhead ratio is calculated by netting total non-interest expense and total non-interest income, annualizing this amount, and dividing by that periods total average assets. A lower ratio indicates a higher degree of efficiency.
(5)   Capital ratios for current quarter-end are estimated.
(6)   The allowance for credit losses includes both the allowance for loan losses and the allowance for unfunded lending-related commitments. Effective January 1, 2020, the allowance for credit losses also includes the allowance for investment securities as a result of the adoption of Accounting Standard Update ("ASU") 2016-13, Financial Instruments - Credit Losses.

 

WINTRUST FINANCIAL CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CONDITION

 

 

(Unaudited)

 

(Unaudited)

 

(Unaudited)

 

 

 

(Unaudited)

 

 

Sep 30,

 

Jun 30,

 

Mar 31,

 

Dec 31,

 

Sep 30,

(In thousands)

 

2020

 

2020

 

2020

 

2019

 

2019

Assets

 

 

 

 

 

 

 

 

 

 

Cash and due from banks

 

$

308,639

 

 

$

344,999

 

 

$

349,118

 

 

$

286,167

 

 

$

448,755

 

Federal funds sold and securities purchased under resale agreements

 

56

 

 

58

 

 

309

 

 

309

 

 

59

 

Interest-bearing deposits with banks

 

3,825,823

 

 

4,015,072

 

 

1,943,743

 

 

2,164,560

 

 

2,260,806

 

Available-for-sale securities, at fair value

 

2,946,459

 

 

3,194,961

 

 

3,570,959

 

 

3,106,214

 

 

2,270,059

 

Held-to-maturity securities, at amortized cost

 

560,267

 

 

728,465

 

 

865,376

 

 

1,134,400

 

 

1,095,802

 

Trading account securities

 

1,720

 

 

890

 

 

2,257

 

 

1,068

 

 

3,204

 

Equity securities with readily determinable fair value

 

54,398

 

 

52,460

 

 

47,310

 

 

50,840

 

 

46,086

 

Federal Home Loan Bank and Federal Reserve Bank stock

 

135,568

 

 

135,571

 

 

134,546

 

 

100,739

 

 

92,714

 

Brokerage customer receivables

 

16,818

 

 

14,623

 

 

16,293

 

 

16,573

 

 

14,943

 

Mortgage loans held-for-sale

 

959,671

 

 

833,163

 

 

656,934

 

 

377,313

 

 

464,727

 

Loans, net of unearned income

 

32,135,555

 

 

31,402,903

 

 

27,807,321

 

 

26,800,290

 

 

25,710,171

 

Allowance for loan losses

 

(325,959

)

 

(313,510

)

 

(216,050

)

 

(156,828

)

 

(161,763

)

Net loans

 

31,809,596

 

 

31,089,393

 

 

27,591,271

 

 

26,643,462

 

 

25,548,408

 

Premises and equipment, net

 

774,288

 

 

769,909

 

 

764,583

 

 

754,328

 

 

721,856

 

Lease investments, net

 

230,373

 

 

237,040

 

 

207,147

 

 

231,192

 

 

228,647

 

Accrued interest receivable and other assets

 

1,424,728

 

 

1,437,832

 

 

1,460,168

 

 

1,061,141

 

 

1,087,864

 

Trade date securities receivable

 

 

 

 

 

502,207

 

 

 

 

 

Goodwill

 

644,644

 

 

644,213

 

 

643,441

 

 

645,220

 

 

584,315

 

Other intangible assets

 

38,670

 

 

41,368

 

 

44,185 47,057 43,657 Total assets $43,731,718 $43,540,017 $38,799,847 $36,620,583 $34,911,902 Liabilities and Shareholders’ Equity Deposits: Non-interest bearing $10,409,747 $10,204,791 $7,556,755 $7,216,758 $7,067,960 Interest bearing 25,434,675 25,447,083 23,904,905 22,890,380 21,642,419 Total deposits 35,844,422 35,651,874 31,461,660 30,107,138 28,710,379 Federal Home Loan Bank advances 1,228,422 1,228,416 1,174,894 674,870 574,847 Other borrowings 507,395 508,535 487,503 418,174 410,488 Subordinated notes 436,385 436,298 436,179 436,095 435,979 Junior subordinated debentures 253,566 253,566 253,566 253,566 253,566 Trade date securities payable — — — 226 Accrued interest payable and other liabilities 1,387,439 1,471,110 1,285,652 1,039,490 986,092 Total liabilities 39,657,629 39,549,799 35,099,454 32,929,333 31,371,577 Shareholders’ Equity: Preferred stock 412,500 412,500 125,000 125,000 125,000 Common stock 58,323 58,294 58,266 57,951 56,825 Surplus 1,647,049 1,643,864 1,652,063 1,650,278 1,574,011 Treasury stock (44,891) (44,891) (44,891) (6,931) (6,799)Retained earnings 2,001,949 1,921,048 1,917,558 1,899,630 1,830,165 Accumulated other comprehensive loss (841) (597) (7,603) (34,678) (38,877)Total shareholders’ equity 4,074,089 3,990,218 3,700,393 3,691,250 3,540,325 Total liabilities and shareholders’ equity $43,731,718 $43,540,017 $38,799,847 $36,620,583 $34,911,902

WINTRUST FINANCIAL CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED)

Three Months Ended

Nine Months Ended

(In thousands, except per share data)

Sep 30,
2020

Jun 30,
2020

Mar 31,
2020

Dec 31,
2019

Sep 30,
2019

Sep 30,
2020

Sep 30,
2019

Interest income

Interest and fees on loans

$

280,479

$

294,746

$

301,839

$

308,055

$

314,277

$

877,064

$

920,425

Mortgage loans held-for-sale

5,791

4,764

3,165

3,201

3,478

13,720

8,791

Interest-bearing deposits with banks

1,181

1,310

4,768

8,971

10,326

7,259

20,832

Federal funds sold and securities purchased under resale agreements

16

86

390

310

102

310

Investment securities

21,819

27,105

32,467

27,611

24,758

81,391

80,435

Trading account securities

6

13

7

6

20

26

33

Federal Home Loan Bank and Federal Reserve Bank stock

1,774

1,765

1,577

1,328

1,294

5,116

4,088

Brokerage customer receivables

106

97

158

169

164

361

497

Total interest income

311,156

329,816

344,067

349,731

354,627

985,039

1,035,411

Interest expense

Interest on deposits

39,084

50,057

67,435

74,724

76,168

156,576

204,168

Interest on Federal Home Loan Bank advances

4,947

4,934

3,360

1,461

1,774

13,241

8,417

Interest on other borrowings

3,012

3,436

3,546

3,273

3,466

9,994

10,624

Interest on subordinated notes

5,474

5,506

5,472

5,504

5,470

16,452

10,051

Interest on junior subordinated debentures

2,703

2,752

2,811

2,890

2,897

8,266

9,111

Total interest expense

55,220

66,685

82,624

87,852

89,775

204,529

242,371

Net interest income

255,936

263,131

261,443

261,879

264,852

780,510

793,040

Provision for credit losses

25,026

135,053

52,961

7,826

10,834

213,040

46,038

Net interest income after provision for credit losses

230,910

128,078

208,482

254,053

254,018

567,470

747,002

Non-interest income

Wealth management

24,957

22,636

25,941

24,999

23,999

73,534

72,115

Mortgage banking

108,544

102,324

48,326

47,860

50,864

259,194

106,433

Service charges on deposit accounts

11,497

10,420

11,265

10,973

9,972

33,182

28,097

Gains (losses) on investment securities, net

411

808

(4,359

)

587

710

(3,140

)

2,938

Fees from covered call options

2,292

1,243

2,292

2,427

Trading gains (losses), net

183

(634

)

(451

)

46

11

(902

)

(204

)

Operating lease income, net

11,717

11,785

11,984

12,487

12,025

35,486

34,554

Other

13,284

14,654

18,244

14,025

17,556

46,182

48,592

Total non-interest income

170,593

161,993

113,242

112,220

115,137

445,828

294,952

Non-interest expense

Salaries and employee benefits

164,042

154,156

136,762

145,941

141,024

454,960

400,479

Equipment

17,251

15,846

14,834

14,485

13,314

47,931

37,843

Operating lease equipment

9,425

9,292

9,260

9,766

8,907

27,977

25,994

Occupancy, net

15,830

16,893

17,547

17,132

14,991

50,270

47,157

Data processing

5,689

10,406

8,373

7,569

6,522

24,468

20,251

Advertising and marketing

7,880

7,704

10,862

12,517

13,375

26,446

36,078

Professional fees

6,488

7,687

6,721

7,650

8,037

20,896

19,821

Amortization of other intangible assets

2,701

2,820

2,863

3,017

2,928

8,384

8,827

FDIC insurance

6,772

7,081

4,135

1,348

148

17,988

7,851

OREO expense, net

(168

)

237

(876

)

536

1,170

(807

)

3,092

Other

28,309

27,246

24,160

29,630

24,138

79,715

71,142

Total non-interest expense

264,219

259,368

234,641

249,591

234,554

758,228

678,535

Income before taxes

137,284

30,703

87,083

116,682

134,601

255,070

363,419

Income tax expense

29,969

9,044

24,271

30,718

35,480

63,284

93,686

Net income

$

107,315

$

21,659

$

62,812

$

85,964

$

99,121

$

191,786

$

269,733

Preferred stock dividends

10,286

2,050

2,050

2,050

2,050

14,386

6,150

Net income applicable to common shares

$

97,029

$

19,609

$

60,762

$

83,914

$

97,071

$

177,400

$

263,583

Net income per common share - Basic

$

1.68

$

0.34

$

1.05

$

1.46

$

1.71

$

3.08

$

4.65

Net income per common share - Diluted

$

1.67

$

0.34

$

1.04

$

1.44

$

1.69

$

3.06

$

4.60

Cash dividends declared per common share

$

0.28

$

0.28

$

0.28

$

0.25

$

0.25

$

0.84

$

0.75

Weighted average common shares outstanding

57,597

57,567

57,620

57,538

56,690

57,595

56,627

Dilutive potential common shares

449

414

575

874

773

469

724

Average common shares and dilutive common shares

58,046

57,981

58,195

58,412

57,463

58,064

57,351

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

% Growth From

(Dollars in thousands)

Sep 30,
2020

Jun 30,
2020

Mar 31,
2020

Dec 31,
2019

Sep 30,
2019

Dec 31,
2019 (1)

Sep 30,
2019

Balance:

Commercial

Commercial, industrial, and other

$

8,897,986

$

8,523,864

$

9,025,886

$

8,285,920

$

8,195,602

10

%

9

%

Commercial PPP loans

3,379,013

3,335,368

100

100

Commercial real estate

Construction and development

1,333,149

1,285,282

1,237,274

1,200,783

1,025,961

15

30

Non-construction

7,089,993

6,915,463

6,948,257

6,819,493

6,422,706

5

10

Home equity

446,274

466,596

494,655

513,066

512,303

(17

)

(13

)

Residential real estate

1,384,810

1,427,429

1,377,389

1,354,221

1,218,666

3

14

Premium Finance receivables

Commercial insurance

4,060,144

3,999,774

3,465,055

3,442,027

3,449,950

24

18

Life insurance

5,488,832

5,400,802

5,221,639

5,074,602

4,795,496

11

14

Consumer and other

55,354

48,325

37,166

110,178

89,487

(66

)

(38

)

Total loans, net of unearned income

$

32,135,555

$

31,402,903

$

27,807,321

$

26,800,290

$

25,710,171

27

%

25

%

Mix:

Commercial

Commercial, industrial, and other

28

%

28

%

32

%

31

%

32

%

Commercial PPP loans

11

11

Commercial real estate

Construction and development

4

4

4

4

4

Non-construction

22

22

25

26

25

Home equity

1

1

2

2

2

Residential real estate

4

4

5

5

5

Premium Finance receivables

Commercial insurance

13

13

13

13

13

Life insurance

17

17

19

19

19

Consumer and other

0

0

0

0

0

Total loans, net of unearned income

100

%

100

%

100

%

100

%

100

%

(1) Annualized.

Sep 30, 2020

Jun 30, 2020

Mar 31, 2020

Dec 31, 2019

Sep 30, 2019

(Dollars in thousands)

Balance

% of
Total
Balance

Balance

% of
Total
Balance

Balance

% of
Total
Balance

Balance

% of
Total
Balance

Balance

% of
Total
Balance

Commercial real estate - collateral location by state:

Illinois

$

6,270,584

74.4

%

$

6,198,486

75.6

%

$

6,171,606

75.4

%

$

6,176,353

77.0

%

$

5,654,827

75.9

%

Wisconsin

783,241

9.3

760,839

9.3

793,145

9.7

744,975

9.3

744,577

10.0

Total primary markets

$

7,053,825

83.7

%

$

6,959,325

84.9

%

$

6,964,751

85.1

%

$

6,921,328

86.3

%

$

6,399,404

85.9

%

Indiana

265,905

3.2

249,423

3.0

249,680

3.1

218,963

2.7

193,350

2.6

Florida

133,602

1.6

133,810

1.6

126,786

1.5

114,629

1.4

80,120

1.1

Arizona

79,086

0.9

78,135

1.0

72,214

0.9

64,022

0.8

62,657

0.8

California

82,852

1.0

81,634

1.0

63,883

0.8

64,345

0.8

67,999

0.9

Other

807,872

9.6

698,418

8.5

708,217

8.6

636,989

8.0

645,137

8.7

Total commercial real estate

$

8,423,142

100

%

$

8,200,745

100

%

$

8,185,531

100

%

$

8,020,276

100

%

$

7,448,667

100

%

TABLE 2: DEPOSIT PORTFOLIO MIX AND GROWTH RATES

% Growth From

(Dollars in thousands)

Sep 30,
2020

Jun 30,
2020

Mar 31,
2020

Dec 31,
2019

Sep 30,
2019

Dec 31,
2019 (1)

Sep 30,
2019

Balance:

Non-interest bearing

$

10,409,747

$

10,204,791

$

7,556,755

$

7,216,758

$