Wintrust Financial Corporation Reports Fourth Quarter 2021

ROSEMONT, Ill., Jan. 19, 2022 (GLOBE NEWSWIRE) — Wintrust Financial Corporation (“Wintrust”, “the Company”, “we” or “our”) (Nasdaq: WTFC) announced net income of $98.8 million or $1.58 per diluted common share for the fourth quarter of 2021, a decrease in diluted earnings per common share of 11% compared to the third quarter of 2021. The Company recorded record annual net income of $466.2 million or $7.58 per diluted common share for the year ended December 31, 2021 compared to net income of $293.0 million or $4.68 per diluted common share for the same period of 2020.

Highlights of the Fourth Quarter of 2021:
Comparative information to the third quarter of 2021

  • Total assets increased by $2.3 billion totaling $50.1 billion as of December 31, 2021.
  • Total loans, excluding Paycheck Protection Program (“PPP”) loans, increased by $2.0 billion, or 25% on an annualized basis.
    • Core loans increased by $908 million and Niche loans increased by $1.1 billion. Niche loans included $578 million of growth related to loans acquired in a business combination completed in the fourth quarter of 2021.
    • PPP loans declined by $524 million in the fourth quarter of 2021 primarily as a result of processing forgiveness payments.
  • Total deposits increased by $2.1 billion, including a $925 million increase in non-interest bearing deposits.
  • Net interest income increased by $8.5 million as compared to the third quarter of 2021 as follows:
    • Increased $15.5 million primarily due to earning asset growth and a five basis point decline in deposit costs.
    • Decreased by $7.0 million due to $1.7 million less PPP interest income and $5.3 million less PPP fee income.
  • Net interest margin decreased by four basis points primarily due to increased liquidity which had approximately a six basis point unfavorable impact.
    • However, the rate on interest bearing deposits declined by five basis points which more than offset a three basis point decline in loan yields.
  • Recorded $6.2 million of net charge-offs or seven basis points on an annualized basis in the fourth quarter of 2021 as compared to no material net charge-offs in the third quarter of 2021.
  • Recorded a provision for credit losses of $9.3 million in the fourth quarter of 2021 as compared to a negative provision for credit losses of $7.9 million in the third quarter of 2021. The provision for credit losses in the fourth quarter of 2021 was primarily due to strong loan growth with approximately $782,000 of provision for credit losses related to acquired loans.
  • The allowance for credit losses on our core loan portfolio is approximately 1.33% of the outstanding balance as of December 31, 2021, down from 1.38% as of September 30, 2021. See Table 12 for more information.
  • Non-performing loans decreased to 0.21% of total loans, as of December 31, 2021, down from 0.27% as of September 30, 2021.
  • Mortgage banking revenue decreased to $53.1 million for the fourth quarter of 2021 as compared to $55.8 million in the third quarter of 2021.
  • Tangible book value per common share (non-GAAP) increased to $59.64 as compared to $58.32 as of September 30, 2021. See Table 18 for reconciliation of non-GAAP measures.

Edward J. Wehmer, Founder and Chief Executive Officer, commented, “I am extremely proud of the Company’s performance in 2021 as we celebrated Wintrust’s 30th anniversary by reporting record annual net income and eclipsing $50 billion in total assets. The fourth quarter of 2021 was characterized by significant loan and deposit growth, increased net interest income, seasonally strong mortgage banking revenue, tangible book value growth and impressive credit quality metrics. Wintrust reported net income of $98.8 million for the fourth quarter of 2021, down from $109.1 million in the third quarter of 2021. On an annual basis, the Company had record net income totaling $466.2 million in 2021, up from $293.0 million in 2020. Total assets of $50.1 billion as of December 31, 2021 increased by $2.3 billion as compared to September 30, 2021 and increased by $5.1 billion as compared to December 31, 2020.”

Mr. Wehmer continued, “The Company experienced significant loan growth as loans, excluding PPP loans, increased by $2.0 billion or 25%, on an annualized basis in the fourth quarter of 2021. We continue to pick up new market share and grow organically as all of our material loan portfolios exhibited strong growth in the fourth quarter of 2021 including our commercial, commercial real estate, residential real estate loans for investment, commercial insurance premium finance receivable and life insurance premium receivable portfolios. In addition, we completed an acquisition which contributed approximately $578 million of loan growth to the balance sheet. We believe this portfolio fits well with our existing insurance lending businesses. We are still experiencing historically low commercial line of credit utilization and feel confident that we can continue to grow loans given our robust loan pipelines and diversified loan portfolio. Further, our loan growth was predominantly in the second half of the fourth quarter of 2021 as loans as of December 31, 2021 were $1.1 billion higher than average total loans in the fourth quarter of 2021. Total deposits increased by $2.1 billion as compared to the third quarter of 2021 primarily in products with zero or near zero interest rates contributing to a decrease in our cost of funds. We continue to emphasize growing our franchise, including gathering low cost deposits, which we believe will drive value in the long term. Our loans to deposits ratio ended the quarter at 82.6% and we believe that we have sufficient liquidity to meet customer loan demand.”

Mr. Wehmer commented, “Net interest income increased by $8.5 million in the fourth quarter of 2021 primarily due to earning asset growth and a decline in deposit costs. We believe that we have managed to optimize our cost of funds and successfully grown through this challenging interest rate cycle. Additionally, we have been prudent and measured in our approach to deploying liquidity into investment securities and we expect to expand our securities portfolio in 2022 to further enhance net interest income as available market returns improve. Net interest margin decreased by four basis points in the fourth quarter of 2021 as compared to the third quarter of 2021 primarily due to increased liquidity which had approximately a six basis point unfavorable impact. Excluding the unfavorable net interest margin impact from increased liquidity, the margin exhibited improvement as the rate on deposits declined five basis points as compared to a three basis point decline in loan yields.”

Mr. Wehmer stated, “We have maintained our asset sensitive interest rate position which we expect to benefit us as short term interest rates rise. Based on modeled contractual cash flows, including prepayment assumptions, approximately 80% of our current loan balances are projected to reprice or mature in 2022. We project that, assuming an immediate and parallel 25 basis point rate hike, the cumulative increase to net interest income in the subsequent 12 months is approximately $40-$50 million. Such projections incorporate a number of assumptions and could differ materially depending on various factors including competition and the macroeconomic environment.”

Mr. Wehmer noted, “We recorded mortgage banking revenue of $53.1 million in the fourth quarter of 2021 as compared to $55.8 million in the third quarter of 2021. Loan volumes originated for sale in the fourth quarter of 2021 were $1.3 billion, down from $1.6 billion in the third quarter of 2021. Additionally, the Company recorded a $6.7 million increase in the value of mortgage servicing rights related to changes in fair value model assumptions as compared to an $888,000 decrease recognized in the third quarter of 2021. We are focused on expanding our market share of purchase originations understanding that refinance volumes may be pressured in a rising rate environment. Based on current market conditions, and excluding the impact of MSR valuation adjustments, we expect that mortgage banking revenue in the first quarter of 2022 will remain relatively similar to the level recorded in the fourth quarter of 2021.”

Commenting on credit quality, Mr. Wehmer stated, “The Company has reached a record low level of non-performing loans of 0.21% of total loans, as of December 31, 2021. During the fourth quarter of 2021, we continued our practice of pursuing the resolution of non-performing credits and executed a loan sale that reduced non-performing loans by approximately $10 million resulting in $1.8 million of net charge-offs. The fourth quarter of 2021 demonstrated another benign quarter of net charge-offs at $6.2 million following the third quarter of 2021 which had no material net charge-offs. The Company recorded a provision for credit losses of $9.3 million in the fourth quarter of 2021 primarily due to significant loan growth. The allowance for credit losses on our core loan portfolio as of December 31, 2021 is approximately 1.33% of the outstanding balance. We believe that the Company’s reserves remain appropriate and we remain diligent in our review of credit.”

Mr. Wehmer concluded, “Our fourth quarter of 2021 results continued to demonstrate the multi-faceted nature of our business model which we believe uniquely positions us to be successful. We expect to leverage our differentiated, diversified loan portfolio to outperform peers with respect to loan growth which should allow us to continue to expand net interest income. We are focused on taking advantage of market opportunities to prudently deploy excess liquidity into earning assets including core and niche loans and investment securities while maintaining an interest rate sensitive asset portfolio. We are opportunistically evaluating the acquisition market which has been active for both banks and business lines of various sizes. Of course, we remain diligent in our consideration of acquisition targets and intend to be prudent in our decision-making, always seeking to minimize dilution.”

The graphs below illustrate certain financial highlights of the fourth quarter of 2021 as well as historical financial performance. 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/f8ba0f96-41dd-4f04-a9bf-8082be4c0600

SUMMARY OF RESULTS:

BALANCE SHEET

Total asset growth of $2.3 billion in the fourth quarter of 2021 was primarily comprised of a $1.5 billion increase in total loans and a $1.0 billion increase in liquidity management assets partially offset by a $107 million decline in mortgage loans held-for-sale. Total loans, excluding PPP loans, increased by $2.0 billion as core loans increased by $908 million and niche loans increased by $1.1 billion, partially offset by a $524 million decline in PPP loans. See Table 1 for more information. Niche loans included $578 million of growth related to loans acquired in a business combination completed in the fourth quarter of 2021. As of December 31, 2021, virtually all of PPP loan balances originated in 2020 were forgiven with only $74 million remaining on balance sheet of which nearly all are in the forgiveness process. Whereas, as of December 31, 2021, approximately 64% of PPP loan balances originated in 2021 were forgiven, 14% are in the forgiveness review or submission process and 22% have yet to apply for forgiveness.

Total liabilities increased $2.2 billion in the fourth quarter of 2021 resulting primarily from a $2.1 billion increase in total deposits. The increase in deposits was primarily due to a $925 million increase in non-interest bearing deposits and a $692 million increase in money market deposits. The Company’s loans to deposits ratio ended the quarter at 82.6%. Management believes in substantially funding the Company’s balance sheet with core deposits and utilizes brokered or wholesale funding sources on a limited basis to manage its liquidity position as well as for interest rate risk management purposes.

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

NET INTEREST INCOME

For the fourth quarter of 2021, net interest income totaled $296.0 million, an increase of $8.5 million as compared to the third quarter of 2021. The $8.5 million increase in net interest income in the fourth quarter of 2021 compared to the third quarter of 2021 was primarily due to earning asset growth and a decline in deposit costs. Additionally, the net interest income growth occurred despite a decline of $7.0 million due to $1.7 million less PPP interest income and $5.3 million less PPP fee income.  As of December 31, 2021, the Company had approximately $12.7 million of net PPP loan fees that have yet to be recognized in income.

Net interest margin was 2.54% (2.55% on a fully taxable-equivalent basis, non-GAAP) during the fourth quarter of 2021 compared to 2.58% (2.59% on a fully taxable-equivalent basis, non-GAAP) during the third quarter of 2021. The net interest margin decrease as compared to the prior quarter was primarily due to the seven basis point decrease in yield on earning assets and three basis point decrease in the net free funds contribution partially offset by a six basis point decrease in the rate paid on interest-bearing liabilities. The decrease in the rate paid on interest-bearing liabilities in the fourth quarter of 2021 as compared to the third quarter of 2021 is primarily due to a five basis point decrease in the rate paid on interest-bearing deposits primarily due to lower repricing of time deposits. The seven basis point decrease in the yield on earning assets in the fourth quarter of 2021 as compared to the third quarter of 2021 was primarily due to a shift in earning asset mix with increasing levels of lower yielding liquidity management assets.

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

ASSET QUALITY

The allowance for credit losses totaled $299.7 million as of December 31, 2021, an increase of $3.6 million as compared to $296.1 million as of September 30, 2021. The allowance for credit losses increased primarily due to growth in the loan portfolio and was partially offset by improvement in macroeconomic factors. A provision for credit losses totaling $9.3 million was recorded for the fourth quarter of 2021 as compared to a negative provision of $7.9 million for the third quarter of 2021. 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”) accounting standard requires the Company to estimate expected credit losses over the life of the Company’s financial assets as of the reporting date. 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 each portfolio as of December 31, 2021, September 30, 2021, and June 30, 2021 is shown on Table 12 of this report.

Net charge-offs totaled $6.2 million in the fourth quarter of 2021, as compared to no material net charge-offs in the third quarter of 2021. Net charge-offs as a percentage of average total loans were reported as seven basis points in the fourth quarter of 2021 on an annualized basis compared to zero basis points on an annualized basis in the third quarter of 2021. For more information regarding net charge-offs, see Table 10 in this report.

As of December 31, 2021, $53.7 million of all loans, or 0.2%, were 60 to 89 days past due and $187.4 million, or 0.5%, were 30 to 59 days (or one payment) past due. As of September 30, 2021, $32.9 million of all loans, or 0.1%, were 60 to 89 days past due and $128.8 million, or 0.4%, were 30 to 59 days (or one payment) past due. Many of the commercial and commercial real-estate loans shown as 60 to 89 days and 30 to 59 days past due are included on the Company’s internal problem loan reporting system. Loans on this system are closely monitored by management on a monthly basis.

The Company’s home equity and residential real estate loan portfolios continue to exhibit low delinquency rates as of December 31, 2021. Home equity loans at December 31, 2021 that are current with regard to the contractual terms of the loan agreement represent 98.9% of the total home equity portfolio. Residential real estate loans at December 31, 2021 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. 

The ratio of non-performing assets to total assets was 0.16% as of December 31, 2021, compared to 0.22% at September 30, 2021. Non-performing assets totaled $78.7 million at December 31, 2021, compared to $103.9 million at September 30, 2021. Non-performing loans totaled $74.4 million, or 0.21% of total loans, at December 31, 2021 compared to $90.0 million, or 0.27% of total loans, at September 30, 2021. Other real estate owned (“OREO”) totaled $4.3 million at December 31, 2021, a decrease of $9.6 million compared to $13.8 million at September 30, 2021. 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 $1.0 million during the fourth quarter of 2021 as compared to the third quarter of 2021 primarily due to increased trust and asset management fees. 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 decreased by $2.7 million in the fourth quarter of 2021 as compared to the third quarter of 2021, primarily due to an $11.1 million decline in production revenue. This decrease was partially offset by a $6.7 million favorable mortgage servicing rights portfolio fair value adjustment as compared to an $888,000 decrease recognized in the prior quarter.  Loans originated for sale were $1.3 billion in the fourth quarter of 2021, a decrease of $260 million as compared to the third quarter of 2021. The percentage of origination volume from refinancing activities was 48% in the fourth quarter of 2021 as compared to 44% in the third quarter of 2021. Mortgage banking revenue includes revenue from activities related to originating, selling and servicing residential real estate loans for the secondary market.

During the fourth quarter of 2021, the fair value of the mortgage servicing rights portfolio increased primarily due to the capitalization of $15.1 million of servicing rights and a fair value adjustment increase of $6.7 million.  These increases were partially offset by a reduction in value of $7.5 million due to payoffs and paydowns of the existing portfolio.

The Company recognized net losses on investment securities of $1.1 million in the fourth quarter of 2021 as compared to net losses of $2.4 million recognized in the third quarter of 2021. 

Net operating lease income totaled $14.2 million in the fourth quarter of 2021 as compared to $12.8 million in the prior quarter.  The $1.4 million increase in the fourth quarter of 2021 is primarily attributable to increased gains on sale of lease assets as compared to the third quarter of 2021.

Other non-interest income decreased by $4.5 million in the fourth quarter of 2021 as compared to the third quarter of 2021 primarily due to a $3.7 million decrease in income on partnership investments.

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

NON-INTEREST EXPENSE

Salaries and employee benefits expense decreased by $3.8 million in the fourth quarter of 2021 as compared to the third quarter of 2021. The $3.8 million decline is primarily related to lower incentive compensation expense and lower commissions expense due to declining mortgage production, partially offset by increased staffing expense as the company grows.

Software and equipment expense totaled $23.7 million in the fourth quarter of 2021, an increase of $1.7 million as compared to the third quarter of 2021. The increase in the fourth quarter of 2021 is primarily due to accelerated depreciation related to the reduction in the useful life of a software asset that is planned to be replaced as we continue to make upgrades to our digital customer experience.

The Company recorded a net OREO gain of $641,000 in the fourth quarter of 2021 as compared to a net gain of $1.5 million in the third quarter of 2021.  The net gains are primarily attributable to the sale of OREO properties during the third and fourth quarter of 2021.

Miscellaneous expense in the fourth quarter of 2021 increased by $864,000 as compared to the third quarter of 2021.  Miscellaneous expense includes ATM expenses, correspondent bank charges, directors fees, telephone, travel and entertainment, corporate insurance, dues and subscriptions, problem loan expenses and lending origination costs that are not deferred.

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

INCOME TAXES

The Company recorded income tax expense of $38.3 million in the fourth quarter of 2021 compared to $40.6 million in the third quarter of 2021. The effective tax rates were 27.94% in the fourth quarter of 2021 compared to 27.12% in the third quarter of 2021.

BUSINESS UNIT SUMMARY

Community Banking

Through its community banking unit, the Company provides banking and financial services primarily to individuals, small to mid-sized businesses, local governmental units and institutional clients residing primarily in the local areas the Company services. In the fourth quarter of 2021, this unit expanded its loan portfolio and its deposit portfolio. The segment’s net interest income increased in the fourth quarter of 2021 as compared to the third quarter of 2021 primarily due to growth in earning assets despite a net interest margin decrease primarily due to increased liquidity.

Mortgage banking revenue was $53.1 million for the fourth quarter of 2021, a decrease of $2.7 million as compared to the third quarter of 2021. Service charges on deposit accounts totaled $14.7 million in the fourth quarter of 2021, an increase of $585,000 as compared to the third quarter of 2021 primarily due to higher fees associated with commercial account activity. The Company’s gross commercial and commercial real estate loan pipelines remained strong as of December 31, 2021. Before the impact of scheduled payments and prepayments, gross commercial and commercial real estate loan pipelines were estimated to be approximately $1.1 billion to $1.3 billion at December 31, 2021. When adjusted for the probability of closing, the pipelines were estimated to be approximately $700 million to $800 million at December 31, 2021.

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 $3.6 billion during the fourth quarter of 2021 and average balances increased by $386.3 million as compared to the third quarter of 2021. The increase in average balances in the insurance premium finance receivables portfolios primarily generated a $2.1 million increase in interest income. The Company’s leasing portfolio increased in the fourth quarter of 2021, with its portfolio of assets, including capital leases, loans and equipment on operating leases, at $2.4 billion at the end of the fourth quarter of 2021 as compared to $2.3 billion at the end of third quarter of 2021. Revenues from the Company’s out-sourced administrative services business were $1.8 million in the fourth quarter of 2021, up $487,000 from the third quarter of 2021.

Wealth Management

Through four separate subsidiaries within its wealth management unit, the Company offers a full range of wealth management services, including trust and investment services, tax-deferred like-kind exchange services, asset management, securities brokerage services and 401(k) and retirement plan services. Wealth management revenue totaled $32.5 million in the fourth quarter of 2021, an increase of $1.0 million compared to the third quarter of 2021. Increases in asset management fees were primarily due to favorable equity market performance during the fourth quarter of 2021. At December 31, 2021, the Company’s wealth management subsidiaries had approximately $35.5 billion of assets under administration, which included $5.3 billion of assets owned by the Company and its subsidiary banks, representing a $963.9 million increase from the $34.5 billion of assets under administration at September 30, 2021.

ITEMS IMPACTING COMPARATIVE FINANCIAL RESULTS

Acquisitions

On November 15, 2021, the Company completed its previously-announced purchase of loans with a fair value of approximately $582 million, net of allowance for credit losses measured on the acquisition date, from the Allstate Corporation. The loan portfolio was comprised of approximately 1,800 loans to Allstate agents nationally. In addition to acquiring the loans, the Company became the national preferred provider of loans to Allstate agents. In connection with the loan acquisition, a team of Allstate agency lending specialists joined the Company, to augment and expand Wintrust’s existing insurance agency finance business. As the transaction was determined to be a business combination, the Company recorded goodwill of approximately $9.3 million on the purchase.

WINTRUST FINANCIAL CORPORATION
Key Operating Measures

Wintrust’s key operating measures and growth rates for the fourth quarter of 2021, as compared to the third quarter of 2021 (sequential quarter) and fourth quarter of 2020 (linked quarter), are shown in the table below:

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

3rd Quarter
2021
  % or
basis point 
(bp) change
from

4th Quarter
2020
    Three Months Ended  
(Dollars in thousands, except per share data)   Dec 31, 2021   Sep 30, 2021   Dec 31, 2020  
Net income   $ 98,757     $ 109,137     $ 101,204   (10 ) %   (2 ) %
Pre-tax income, excluding provision for credit losses (non-GAAP) (2)     146,344       141,826       135,891   3       8    
Net income per common share – diluted     1.58       1.77       1.63   (11 )     (3 )  
Cash dividends declared per common share     0.31       0.31       0.28         11    
Net revenue (3)     429,743       423,970       417,758   1       3    
Net interest income     295,976       287,496       259,397   3       14    
Net interest margin     2.54 %     2.58 %     2.53 % (4 ) bps   1   bps
Net interest margin – fully taxable-equivalent (non-GAAP) (2)     2.55       2.59       2.54   (4 )     1    
Net overhead ratio (4)     1.21       1.22       1.12   (1 )     9    
Return on average assets     0.80       0.92       0.92   (12 )     (12 )  
Return on average common equity     9.05       10.31       10.30   (126 )     (125 )  
Return on average tangible common equity (non-GAAP) (2)     11.04       12.62       12.95   (158 )     (191 )  
At end of period                      
Total assets   $    50,142,143     $ 47,832,271     $ 45,080,768   19   %   11   %
Total loans (5)          34,789,104       33,264,043       32,079,073   18       8    
Total deposits          42,095,585       39,952,558       37,092,651   21       13    
Total shareholders’ equity            4,498,688       4,410,317       4,115,995   8       9    

(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 Company’s website at www.wintrust.com by choosing “Financial Reports” under the “Investor Relations” heading, and then choosing “Financial Highlights.”

WINTRUST FINANCIAL CORPORATION
Selected Financial Highlights

    Three Months Ended Years Ended
(Dollars in thousands, except per share data)   Dec 31,
2021
  Sep 30,
2021
  Jun 30,
2021
  Mar 31,
2021
  Dec 31,
2020
Dec 31,
2021
  Dec 31,
2020
Selected Financial Condition Data (at end of period):      
Total assets   $               50,142,143     $ 47,832,271     $ 46,738,450     $ 45,682,202     $ 45,080,768        
Total loans (1)     34,789,104       33,264,043       32,911,187       33,171,233       32,079,073        
Total deposits     42,095,585       39,952,558       38,804,616       37,872,652       37,092,651        
Total shareholders’ equity       4,498,688       4,410,317       4,339,011       4,252,511       4,115,995        
Selected Statements of Income Data:      
Net interest income   $ 295,976     $ 287,496     $ 279,590     $ 261,895     $ 259,397   $ 1,124,957     $ 1,039,907  
Net revenue (2)     429,743       423,970       408,963       448,401       417,758     1,711,077       1,644,096  
Net income     98,757       109,137       105,109       153,148       101,204     466,151       292,990  
Pre-tax income, excluding provision for credit losses (non-GAAP) (3)     146,344       141,826       128,851       161,512       135,891     578,533       604,001  
Net income per common share – Basic     1.61       1.79       1.72       2.57       1.64     7.69       4.72  
Net income per common share – Diluted     1.58       1.77       1.70       2.54       1.63     7.58       4.68  
Cash dividends declared per common share     0.31       0.31       0.31       0.31       0.28     1.24       1.12  
Selected Financial Ratios and Other Data:      
Performance Ratios:      
Net interest margin     2.54 %     2.58 %     2.62 %     2.53 %     2.53 %   2.57 %     2.72 %
Net interest margin – fully taxable-equivalent (non-GAAP) (3)     2.55       2.59       2.63       2.54       2.54     2.58       2.73  
Non-interest income to average assets     1.08       1.15       1.13       1.68       1.44     1.25       1.46  
Non-interest expense to average assets     2.29       2.37       2.45       2.59       2.56     2.42       2.51  
Net overhead ratio (4)     1.21       1.22       1.32       0.90       1.12     1.17       1.05  
Return on average assets     0.80       0.92       0.92       1.38       0.92     1.00       0.71  
Return on average common equity     9.05       10.31       10.24       15.80       10.30     11.27       7.50  
Return on average tangible common equity (non-GAAP) (3)     11.04       12.62       12.62       19.49       12.95     13.83       9.54  
Average total assets   $ 49,118,777     $ 47,192,510     $ 45,946,751     $ 44,988,733     $ 43,810,005   $ 46,824,051     $ 41,371,339  
Average total shareholders’ equity     4,433,953       4,343,915       4,256,778       4,164,890       4,050,286     4,300,742       3,926,688  
Average loans to average deposits ratio     81.7 %     83.8 %     86.7 %     87.1 %     87.9 %   84.7 %     88.8 %
Period-end loans to deposits ratio     82.6       83.3       84.8       87.6       86.5        
Common Share Data at end of period:      
Market price per common share   $ 90.82     $ 80.37     $ 75.63     $ 75.80     $ 61.09        
Book value per common share     71.62       70.19       68.81       67.34       65.24        
Tangible book value per common share (non-GAAP) (3)     59.64       58.32       56.92       55.42       53.23        
Common shares outstanding     57,054,091       56,956,026       57,066,677       57,023,273       56,769,625        
Other Data at end of period:      
Tier 1 leverage ratio (5)     8.0 %     8.1 %     8.2 %     8.2 %     8.1 %      
Risk-based capital ratios:                          
Tier 1 capital ratio (5)     9.6       9.9       10.1       10.2       10.0        
Common equity tier 1 capital ratio (5)     8.5       8.9       9.0       9.0       8.8        
Total capital ratio (5)     11.6       12.1       12.4       12.6       12.6        
Allowance for credit losses (6)   $ 299,731     $ 296,138     $ 304,121     $ 321,308     $ 379,969        
Allowance for loan and unfunded lending-related commitment losses to total loans     0.86 %     0.89 %     0.92 %     0.97 %     1.18 %      
Number of:                          
Bank subsidiaries     15       15       15       15       15        
Banking offices     173       172       172       182       181        

(1) Excludes mortgage loans held-for-sale. 
(2) Net revenue is net interest income and non-interest income. 
(3) See “Supplemental Non-GAAP Financial Measures/Ratios” at Table 18 for additional information on this performance measure/ratio. 
(4) The net overhead ratio is calculated by netting total non-interest expense and total non-interest income, annualizing this amount, and dividing by that period’s average total 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 the allowance for loan losses, the allowance for unfunded lending-related commitments and the allowance for held-to-maturity securities losses.

 

WINTRUST FINANCIAL CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CONDITION

    (Unaudited)   (Unaudited)   (Unaudited)   (Unaudited)    
    Dec 31,   Sep 30,   Jun 30,   Mar 31,   Dec 31,
(In thousands)     2021       2021       2021       2021       2020  
Assets                    
Cash and due from banks   $         411,150     $         462,244     $         434,957     $         426,325     $         322,415  
Federal funds sold and securities purchased under resale agreements               700,055                          55                          52                          52                          59  
Interest-bearing deposits with banks            5,372,603              5,232,315              4,707,415              3,348,794              4,802,527  
Available-for-sale securities, at fair value            2,327,793              2,373,478              2,188,608              2,430,749              3,055,839  
Held-to-maturity securities, at amortized cost            2,942,285              2,736,722              2,498,232              2,166,419                 579,138  
Trading account securities                   1,061                     1,103                     2,667                        951                        671  
Equity securities with readily determinable fair value                 90,511                   88,193                   86,316                   90,338                   90,862  
Federal Home Loan Bank and Federal Reserve Bank stock               135,378                 135,408                 136,625                 135,881                 135,588  
Brokerage customer receivables                 26,068                   26,378                   23,093                   19,056                   17,436  
Mortgage loans held-for-sale               817,912                 925,312                 984,994              1,260,193              1,272,090  
Loans, net of unearned income          34,789,104            33,264,043            32,911,187            33,171,233            32,079,073  
Allowance for loan losses              (247,835 )              (248,612 )              (261,089 )              (277,709 )              (319,374 )
Net loans          34,541,269            33,015,431            32,650,098            32,893,524            31,759,699  
Premises, software and equipment, net               766,405                 748,872                 752,375                 760,522                 768,808  
Lease investments, net               242,082                 243,933                 219,023                 238,984                 242,434  
Accrued interest receivable and other assets            1,084,115              1,166,917              1,185,811              1,230,362              1,351,455  
Trade date securities receivable                        —                          —                 189,851                          —                          —  
Goodwill               655,149                 645,792                 646,336                 646,017                 645,707  
Other acquisition-related intangible assets                 28,307                   30,118                   31,997                   34,035                   36,040  
Total assets   $    50,142,143     $    47,832,271     $    46,738,450     $    45,682,202     $    45,080,768  
Liabilities and Shareholders’ Equity                    
Deposits:                    
Non-interest-bearing   $    14,179,980     $    13,255,417     $    12,796,110     $    12,297,337     $    11,748,455  
Interest-bearing          27,915,605            26,697,141            26,008,506            25,575,315            25,344,196  
Total deposits          42,095,585            39,952,558            38,804,616            37,872,652            37,092,651  
Federal Home Loan Bank advances            1,241,071              1,241,071              1,241,071              1,228,436              1,228,429  
Other borrowings               494,136                 504,527                 518,493                 516,877                 518,928  
Subordinated notes               436,938                 436,811                 436,719                 436,595                 436,506  
Junior subordinated debentures               253,566                 253,566                 253,566                 253,566                 253,566  
Trade date securities payable                        —                     1,348                          —                        995                 200,907  
Accrued interest payable and other liabilities            1,122,159              1,032,073              1,144,974              1,120,570              1,233,786  
Total liabilities          45,643,455            43,421,954            42,399,439            41,429,691            40,964,773  
Shareholders’ Equity:                    
Preferred stock               412,500                 412,500                 412,500                 412,500                 412,500  
Common stock                 58,892                   58,794                   58,770                   58,727                   58,473  
Surplus            1,685,572              1,674,062              1,669,002              1,663,008              1,649,990  
Treasury stock              (109,903 )              (109,903 )              (100,363 )              (100,363 )              (100,363 )
Retained earnings            2,447,535              2,373,447              2,288,969              2,208,535              2,080,013  
Accumulated other comprehensive income                   4,092                     1,417                   10,133                   10,104                   15,382  
Total shareholders’ equity            4,498,688              4,410,317              4,339,011              4,252,511              4,115,995  
Total liabilities and shareholders’ equity   $    50,142,143     $    47,832,271     $    46,738,450     $    45,682,202     $    45,080,768  

 

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

  Three Months Ended Years Ended
(In thousands, except per share data) Dec 31,
2021
  Sep 30,
2021
  Jun 30,
2021
  Mar 31,
2021
  Dec 31,
2020
Dec 31,
2021
  Dec 31,
2020
Interest income                        
Interest and fees on loans $ 289,140     $ 285,587     $ 284,701     $ 274,100     $ 280,185   $ 1,133,528     $ 1,157,249  
Mortgage loans held-for-sale   7,234       7,716       8,183       9,036       6,357     32,169       20,077  
Interest-bearing deposits with banks   2,254       2,000       1,153       1,199       1,294     6,606       8,553  
Federal funds sold and securities purchased under resale agreements   173                             173       102  
Investment securities   27,210       25,189       23,623       19,264       18,243     95,286       99,634  
Trading account securities   4       3       1       2       11     10       37  
Federal Home Loan Bank and Federal Reserve Bank stock   1,776       1,777       1,769       1,745       1,775     7,067       6,891  
Brokerage customer receivables   188       185       149       123       116     645       477  
Total interest income   327,979       322,457       319,579       305,469       307,981     1,275,484       1,293,020  
Interest expense                        
Interest on deposits   16,572       19,305       24,298       27,944       32,602     88,119       189,178  
Interest on Federal Home Loan Bank advances   4,923       4,931       4,887       4,840       4,952     19,581       18,193  
Interest on other borrowings   2,250       2,501       2,568       2,609       2,779     9,928       12,773  
Interest on subordinated notes   5,514       5,480       5,512       5,477       5,509     21,983       21,961  
Interest on junior subordinated debentures   2,744       2,744       2,724       2,704       2,742     10,916       11,008  
Total interest expense   32,003       34,961       39,989       43,574       48,584     150,527       253,113  
Net interest income   295,976       287,496       279,590       261,895       259,397     1,124,957       1,039,907  
Provision for credit losses   9,299       (7,916 )     (15,299 )     (45,347 )     1,180     (59,263 )     214,220  
Net interest income after provision for credit losses   286,677       295,412       294,889       307,242       258,217     1,184,220       825,687  
Non-interest income                        
Wealth management   32,489       31,531       30,690       29,309       26,802     124,019       100,336  
Mortgage banking   53,138       55,794       50,584       113,494       86,819     273,010       346,013  
Service charges on deposit accounts   14,734       14,149       13,249       12,036       11,841     54,168       45,023  
(Losses) gains on investment securities, net   (1,067 )     (2,431 )     1,285       1,154       1,214     (1,059 )     (1,926 )
Fees from covered call options   1,128       1,157       1,388                 3,673       2,292  
Trading gains (losses), net   206       58       (438 )     419       (102 )   245       (1,004 )
Operating lease income, net   14,204       12,807       12,240       14,440       12,118     53,691       47,604  
Other   18,935       23,409       20,375       15,654       19,669     78,373       65,851  
Total non-interest income   133,767       136,474       129,373       186,506       158,361     586,120       604,189  
Non-interest expense                        
Salaries and employee benefits   167,131       170,912       172,817       180,809       171,116     691,669       626,076  
Software and equipment   23,708       22,029       20,866       20,912       20,565     87,515       68,496  
Operating lease equipment depreciation   10,147       10,013       9,949       10,771       9,938     40,880       37,915  
Occupancy, net   18,343       18,158       17,687       19,996       19,687     74,184       69,957  
Data processing   7,207       7,104       6,920       6,048       5,728     27,279       30,196  
Advertising and marketing   13,981       13,443       11,305       8,546       9,850     47,275       36,296  
Professional fees   7,551       7,052       7,304       7,587       6,530     29,494       27,426  
Amortization of other acquisition-related intangible assets   1,811       1,877       2,039       2,007       2,634     7,734       11,018  
FDIC insurance   7,317       6,750       6,405       6,558       7,016     27,030       25,004  
OREO expense, net   (641 )     (1,531 )     769       (251 )     (114 )   (1,654 )     (921 )
Other   26,844       26,337       24,051       23,906       28,917     101,138       108,632  
Total non-interest expense   283,399       282,144       280,112       286,889       281,867     1,132,544       1,040,095  
Income before taxes   137,045       149,742       144,150       206,859       134,711     637,796       389,781  
Income tax expense   38,288       40,605       39,041       53,711       33,507     171,645       96,791  
Net income $ 98,757     $ 109,137     $ 105,109     $ 153,148     $ 101,204   $ 466,151     $ 292,990  
Preferred stock dividends   6,991       6,991       6,991       6,991       6,991     27,964       21,377  
Net income applicable to common shares $ 91,766     $ 102,146     $ 98,118     $ 146,157     $ 94,213   $ 438,187     $ 271,613  
Net income per common share – Basic $ 1.61     $ 1.79     $ 1.72     $ 2.57     $ 1.64   $ 7.69     $ 4.72  
Net income per common share – Diluted $ 1.58     $ 1.77     $ 1.70     $ 2.54     $ 1.63   $ 7.58     $ 4.68  
Cash dividends declared per common share $ 0.31     $ 0.31     $ 0.31     $ 0.31     $ 0.28   $ 1.24     $ 1.12  
Weighted average common shares outstanding   57,022       57,000       57,049       56,904       57,309     56,994       57,523  
Dilutive potential common shares   976       753       726       681       588     792       496  
Average common shares and dilutive common shares   57,998       57,753       57,775       57,585       57,897     57,786       58,019  

 

TABLE 1: LOAN PORTFOLIO MIX AND GROWTH RATES

                    % Growth From (2)
(Dollars in thousands) Dec 31,
2021
  Sep 30,
2021
  Jun 30,
2021
  Mar 31,
2021
  Dec 31,
2020
Sep 30,
2021 (1)
  Dec 31,
2020
Balance:                        
Mortgage loans held-for-sale, excluding early buy-out exercised loans guaranteed by U.S. Government Agencies $           473,102   $ 570,663   $ 633,006   $ 890,749   $ 927,307 (68 )%   (49 )%
Mortgage loans held-for-sale, early buy-out exercised loans guaranteed by U.S. Government Agencies                344,810     354,649     351,988     369,444     344,783 (11 )    
Total mortgage loans held-for-sale $           817,912   $ 925,312   $ 984,994   $ 1,260,193   $ 1,272,090 (46 )%   (36 )%
                         
Core loans:                        
Commercial                        
Commercial and industrial $        5,346,084   $ 4,953,769   $ 4,650,607   $ 4,630,795   $ 4,675,594 31 %   14 %
Asset-based lending            1,299,869     1,066,376     892,109     720,772     721,666 87     80  
Municipal                536,498     524,192     511,094     493,417     474,103 9     13  
Leases            1,454,099     1,365,281     1,357,036     1,290,778     1,288,374 26     13  
Commercial real estate                        
Residential construction                  51,464     49,754     55,735     72,058     89,389 14     (42 )
Commercial construction            1,034,988     1,038,034     1,090,447     1,040,631     1,041,729 (1 )   (1 )
Land                269,752     255,927     239,067     240,635     240,684 21     12  
Office (3)            1,285,686     1,269,746     1,220,658     1,131,472     1,136,844 5     13  
Industrial (3)            1,585,808     1,490,358     1,434,377     1,152,522     1,129,433 25     40  
Retail (3)            1,429,567     1,462,101     1,455,638     1,198,025     1,224,403 (9 )   17  
Multi-family (3)            2,043,754     2,038,526     1,984,582     1,739,521     1,649,801 1     24  
Mixed use and other (3)            1,289,267     1,281,268     1,197,865     1,969,915     1,981,849 2     (35 )
Home equity                335,155     347,662     369,806     390,253     425,263 (14 )   (21 )
Residential real estate                        
Residential real estate loans for investment            1,614,392     1,528,889     1,485,952     1,376,465     1,214,744 22     33  
Residential mortgage loans, early buy-out eligible loans guaranteed by U.S. Government Agencies                  22,707     18,847     44,333     45,508     44,854 81     (49 )
Total core loans $     19,599,090   $ 18,690,730   $ 17,989,306   $ 17,492,767   $ 17,338,730 19 %   13 %
                         
Niche loans:                        
Commercial                        
Franchise $        1,227,234   $ 1,176,569   $ 1,060,468   $ 1,128,493   $ 1,023,027 17 %   20 %
Mortgage warehouse lines of credit                359,818     468,162     529,867     587,868     567,389 (92 )   (37 )
Community Advantage – homeowners association                308,286     291,153     287,689     272,222     267,374 23     15  
Insurance agency lending                813,897     260,482     273,999     290,880     222,519 843     266  
Premium Finance receivables                        
U.S. commercial insurance            4,178,474     3,921,289     3,805,504     3,342,730     3,438,087 26     22  
Canada commercial insurance                677,013     695,688     716,367     615,813     616,402 (11 )   10  
Life insurance            7,042,810     6,655,453     6,359,556     6,111,495     5,857,436 23     20  
Consumer and other                  24,199     22,529     9,024     35,983     32,188 29     (25 )
Total niche loans $     14,631,731   $ 13,491,325   $ 13,042,474   $ 12,385,484   $ 12,024,422 34 %   22 %
                         
Commercial PPP loans:                        
Originated in 2020 $              74,412   $ 172,849   $ 656,502   $ 2,049,342   $ 2,715,921 NM     (97 )%
Originated in 2021                483,871     909,139     1,222,905     1,243,640     NM     100  
Total commercial PPP loans $           558,283   $ 1,081,988   $ 1,879,407   $ 3,292,982   $ 2,715,921 NM     (79 )%
                         
Total loans, net of unearned income $     34,789,104   $ 33,264,043   $ 32,911,187   $ 33,171,233   $ 32,079,073 18 %   8 %

(1) Annualized. 
(2) NM – Not meaningful. 
(3) As a result of a review of the composition of borrowers within the mixed use and other loan portfolio, the Company identified certain loans that would be more precisely classified within a separate class of non-construction commercial real estate. This change in classification was based on related collateral and source of repayment of the underlying loan. Balances within such categories were also updated as of September 30, 2021 and June 30, 2021 in the table above for comparison purposes.

 

TABLE 2: DEPOSIT PORTFOLIO MIX AND GROWTH RATES

                    % Growth From
(Dollars in thousands) Dec 31,
2021
  Sep 30,
2021
  Jun 30,
2021
  Mar 31,
2021
  Dec 31,
2020
Sep 30,
2021 (1)
  Dec 31,
2020
Balance:                        
Non-interest-bearing $ 14,179,980     $ 13,255,417     $ 12,796,110     $ 12,297,337     $ 11,748,455   28 %   21 %
NOW and interest-bearing demand deposits        4,158,871       3,769,825       3,625,538       3,562,312       3,349,021   41     24  
Wealth management deposits (2)        4,491,795       4,177,820       4,399,303       4,274,527       4,138,712   30     9  
Money market      11,449,469       10,757,654       9,843,390       9,236,434       9,348,806   26     22  
Savings        3,846,681       3,861,296       3,776,400       3,690,892       3,531,029   (2 )   9  
Time certificates of deposit        3,968,789       4,130,546       4,363,875       4,811,150       4,976,628   (16 )   (20 )
Total deposits $ 42,095,585     $ 39,952,558     $ 38,804,616     $ 37,872,652     $ 37,092,651   21 %   13 %
Mix:                        
Non-interest-bearing   34 %     33 %     33 %     32 %     32 %      
NOW and interest-bearing demand deposits   10       9       9       9       9        
Wealth management deposits (2)   11       11       11       11       11        
Money market   27       27       25       25       25        
Savings   9       10       10       10       10        
Time certificates of deposit   9       10       12       13       13        
Total deposits   100 %     100 %     100 %     100 %     100 %      

(1) Annualized. 
(2) Represents deposit balances of the Company’s subsidiary banks from brokerage customers of Wintrust Investments, Chicago Deferred Exchange Company, LLC (“CDEC”), trust and asset management customers of the Company and brokerage customers from unaffiliated companies which have been placed into deposit accounts.

 

TABLE 3: TIME CERTIFICATES OF DEPOSIT MATURITY/RE-PRICING ANALYSIS
As of December 31, 2021

(Dollars in thousands)   Total Time
Certificates of
Deposit
  Weighted-Average
Rate of Maturing
Time Certificates
    of Deposit (1)
1-3 months   $                                                 838,321   0.52 %
4-6 months                                                       686,126   0.38  
7-9 months                                                       677,003   0.39  
10-12 months                                                       613,644   0.41  
13-18 months                                                       601,464   0.47  
19-24 months                                                       293,945   0.48  
24+ months                                                       258,286   0.52  
Total   $                                              3,968,789   0.45 %

(1) Weighted-average rate excludes the impact of purchase accounting fair value adjustments.

 

TABLE 4: QUARTERLY AVERAGE BALANCES

    Average Balance for three months ended,
    Dec 31,   Sep 30,   Jun 30,   Mar 31,   Dec 31,
(In thousands)     2021       2021       2021       2021       2020  
Interest-bearing deposits with banks, securities purchased under resale agreements and cash equivalents (1)   $         6,148,165     $ 5,112,720     $ 3,844,355     $ 4,230,886     $ 4,381,040  
Investment securities (2)               5,317,351       5,065,593       4,771,403       3,944,676       3,534,594  
FHLB and FRB stock                  135,414       136,001       136,324       135,758       135,569  
Liquidity management assets (3)             11,600,930       10,314,314       8,752,082       8,311,320       8,051,203  
Other earning assets (3)(4)                    28,298       28,238       23,354       20,370       18,716  
Mortgage loans held-for-sale                  827,672       871,824       991,011       1,151,848       893,395  
Loans, net of unearned income (3)(5)             33,677,777       32,985,445       33,085,174       32,442,927       31,783,279  
Total earning assets (3)             46,134,677       44,199,821       42,851,621       41,926,465       40,746,593  
Allowance for loan and investment security losses                (254,874 )     (269,963 )     (285,686 )     (327,080 )     (336,139 )
Cash and due from banks                  468,331       425,000       470,566       366,413       344,536  
Other assets               2,770,643       2,837,652       2,910,250       3,022,935       3,055,015  
Total assets   $       49,118,777     $ 47,192,510     $ 45,946,751     $ 44,988,733     $ 43,810,005  
                     
NOW and interest-bearing demand deposits   $         3,962,739     $ 3,757,677     $ 3,626,424     $ 3,493,451     $ 3,320,527  
Wealth management deposits               4,514,319       4,672,402       4,369,998       4,156,398       4,066,948  
Money market accounts             11,274,230       10,027,424       9,547,167       9,335,920       9,435,344  
Savings accounts               3,766,037       3,851,523       3,728,271       3,587,566       3,413,388  
Time deposits               4,058,282       4,236,317       4,632,796       4,875,392       5,043,558  
Interest-bearing deposits             27,575,607       26,545,343       25,904,656       25,448,727       25,279,765  
Federal Home Loan Bank advances               1,241,073       1,241,073       1,235,142       1,228,433       1,228,425  
Other borrowings                  501,933       512,785       525,924       518,188       510,725  
Subordinated notes                  436,861       436,746       436,644       436,532       436,433  
Junior subordinated debentures                  253,566       253,566       253,566       253,566       253,566  
Total interest-bearing liabilities             30,009,040       28,989,513       28,355,932       27,885,446       27,708,914  
Non-interest-bearing deposits             13,640,270       12,834,084       12,246,274       11,811,194       10,874,912  
Other liabilities               1,035,514       1,024,998       1,087,767       1,127,203       1,175,893  
Equity               4,433,953       4,343,915       4,256,778       4,164,890       4,050,286  
Total liabilities and shareholders’ equity   $       49,118,777     $ 47,192,510     $ 45,946,751     $ 44,988,733     $ 43,810,005  
                     
Net free funds/contribution (6)   $       16,125,637     $ 15,210,308     $ 14,495,689     $ 14,041,019     $ 13,037,679  

(1) Includes interest-bearing deposits from banks and securities purchased under resale agreements with original maturities of greater than three months. Cash equivalents include federal funds sold and securities purchased under resale agreements with original maturities of three months or less. 
(2) Investment securities includes investment securities classified as available-for-sale and held-to-maturity, and equity securities with readily determinable fair values. Equity securities without readily determinable fair values are included within other assets. 
(3) See “Supplemental Non-GAAP Financial Measures/Ratios” at Table 18 for additional information on this performance measure/ratio. 
(4) Other earning assets include brokerage customer receivables and trading account securities. 
(5) Loans, net of unearned income, include non-accrual loans. 
(6) Net free funds are the difference between total average earning assets and total average interest-bearing liabilities. The estimated contribution to net interest margin from net free funds is calculated using the rate paid for total interest-bearing liabilities.

 

TABLE 5: QUARTERLY NET INTEREST INCOME

    Net Interest Income for three months ended,
    Dec 31,   Sep 30,   Jun 30,   Mar 31,   Dec 31,
(In thousands)     2021       2021       2021       2021       2020  
Interest income:                    
Interest-bearing deposits with banks, securities purchased under resale agreements and cash equivalents   $                2,427     $ 2,000     $ 1,153     $ 1,199     $ 1,294  
Investment securities                    27,696       25,681       24,117       19,764       18,773  
FHLB and FRB stock                      1,776       1,777       1,769       1,745       1,775  
Liquidity management assets (1)                    31,899       29,458       27,039       22,708       21,842  
Other earning assets (1)                         194       188       150       125       130  
Mortgage loans held-for-sale                      7,234       7,716       8,183       9,036       6,357  
Loans, net of unearned income (1)                  289,557       285,998       285,116       274,484       280,509  
Total interest income   $            328,884     $ 323,360     $ 320,488     $ 306,353     $ 308,838  
                     
Interest expense:                    
NOW and interest-bearing demand deposits   $                   774     $ 767     $ 736     $ 901     $ 1,074  
Wealth management deposits                      7,595       7,888       7,686       7,351       7,436  
Money market accounts                      2,604       2,342       2,795       2,865       3,740  
Savings accounts                         345       406       402       430       773  
Time deposits                      5,254       7,902       12,679       16,397       19,579  
Interest-bearing deposits                    16,572       19,305       24,298       27,944       32,602  
Federal Home Loan Bank advances                      4,923       4,931       4,887       4,840       4,952  
Other borrowings                      2,250       2,501       2,568       2,609       2,779  
Subordinated notes                      5,514       5,480       5,512       5,477       5,509  
Junior subordinated debentures                      2,744       2,744       2,724       2,704       2,742  
Total interest expense   $              32,003     $ 34,961     $ 39,989     $ 43,574     $ 48,584  
                     
Less:  Fully taxable-equivalent adjustment                       (905 )     (903 )     (909 )     (884 )     (857 )
Net interest income (GAAP) (2)                  295,976       287,496       279,590       261,895       259,397  
Fully taxable-equivalent adjustment                         905       903       909       884       857  
Net interest income, fully taxable-equivalent (non-GAAP) (2)   $            296,881     $ 288,399     $ 280,499     $ 262,779     $ 260,254  

(1) Interest income on tax-advantaged loans, trading securities and investment securities reflects a taxable-equivalent adjustment based on the marginal federal corporate tax rate in effect as of the applicable period. 
(2) See “Supplemental Non-GAAP Financial Measures/Ratios” at Table 18 for additional information on this performance measure/ratio.

 

TABLE 6: QUARTERLY NET INTEREST MARGIN

    Net Interest Margin for three months ended,
    Dec 31,
2021
  Sep 30,
2021
  Jun 30,
2021
  Mar 31,
2021
  Dec 31,
2020
Yield earned on:                    
Interest-bearing deposits with banks, securities purchased under resale agreements and cash equivalents           0.16 %   0.16 %   0.12 %   0.11 %   0.12 %
Investment securities   2.07     2.01     2.03     2.03     2.11  
FHLB and FRB stock   5.20     5.18     5.20     5.21     5.21  
Liquidity management assets   1.09     1.13     1.24     1.11     1.08  
Other earning assets   2.71     2.64     2.59     2.50     2.79  
Mortgage loans held-for-sale   3.47     3.51     3.31     3.18     2.83  
Loans, net of unearned income   3.41     3.44     3.46     3.43     3.51  
Total earning assets           2.83 %   2.90 %   3.00 %   2.96 %   3.02 %
                     
Rate paid on:                    
NOW and interest-bearing demand deposits           0.08 %   0.08 %   0.08 %   0.10 %   0.13 %
Wealth management deposits   0.67     0.67     0.71     0.72     0.73  
Money market accounts   0.09     0.09     0.12     0.12     0.16  
Savings accounts   0.04     0.04     0.04     0.05     0.09  
Time deposits   0.51     0.74     1.10     1.36     1.54  
Interest-bearing deposits   0.24     0.29     0.38     0.45     0.51  
Federal Home Loan Bank advances   1.57     1.58     1.59     1.60     1.60  
Other borrowings   1.78     1.94     1.96     2.04     2.16  
Subordinated notes   5.05     5.02     5.05     5.02     5.05  
Junior subordinated debentures   4.23     4.23     4.25     4.27     4.23  
Total interest-bearing liabilities           0.42 %   0.48 %   0.56 %   0.63 %   0.70 %
                     
Interest rate spread  (1)(2)           2.41 %   2.42 %   2.44 %   2.33 %   2.32 %
Less:  Fully taxable-equivalent adjustment   (0.01 )   (0.01 )   (0.01 )   (0.01 )   (0.01 )
Net free funds/contribution (3)   0.14     0.17     0.19     0.21     0.22  
Net interest margin (GAAP) (2)   2.54 %   2.58 %   2.62 %   2.53 %   2.53 %
Fully taxable-equivalent adjustment   0.01     0.01     0.01     0.01     0.01  
Net interest margin, fully taxable-equivalent (non-GAAP) (2)   2.55 %   2.59 %   2.63 %   2.54 %   2.54 %

(1) Interest rate spread is the difference between the yield earned on earning assets and the rate paid on interest-bearing liabilities. 
(2) See “Supplemental Non-GAAP Financial Measures/Ratios” at Table 18 for additional information on this performance measure/ratio. 
(3) Net free funds are the difference between total average earning assets and total average interest-bearing liabilities. The estimated contribution to net interest margin from net free funds is calculated using the rate paid for total interest-bearing liabilities.

 

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

  Average Balance
for years ended,
Interest
for years ended,
Yield/Rate
for years ended,
(Dollars in thousands) Dec 31,
2021
  Dec 31,
2020
Dec 31,
2021
  Dec 31,
2020
Dec 31,
2021
  Dec 31,
2020
Interest-bearing deposits with banks, securities purchased under resale agreements and cash equivalents (1) $   4,840,048     $ 3,117,075   $          6,779     $ 8,655   0.14 %   0.28 %
Investment securities (2)       4,779,313       4,101,136              97,258       101,799   2.03     2.48  
FHLB and FRB stock          135,873       130,360                7,067       6,891   5.20     5.29  
Liquidity management assets (3)(4) $   9,755,234     $ 7,348,571   $      111,104      $ 117,345   1.14 %   1.60 %
Other earning assets (3)(4)(5)            25,096       17,863                   657       523   2.62     2.94  
Mortgage loans held-for-sale          959,457       707,147              32,169       20,077   3.35     2.84  
Loans, net of unearned income (3)(4)(6)     33,051,043       30,181,204         1,135,155       1,159,490   3.43     3.84  
Total earning assets (4) $ 43,790,830     $ 38,254,785   $   1,279,085     $ 1,297,435   2.92 %   3.39 %
Allowance for loan and investment security losses         (284,163 )     (264,516 )            
Cash and due from banks          432,836       341,116              
Other assets       2,884,548       3,039,954              
Total assets $ 46,824,051     $ 41,371,339              
                   
NOW and interest-bearing demand deposits $   3,711,489     $ 3,298,554   $          3,178     $ 7,642   0.09 %   0.23 %
Wealth management deposits       4,429,929       3,882,975              30,520       29,277   0.69     0.75  
Money market accounts     10,051,444       8,874,488              10,606       46,488   0.11     0.52  
Savings accounts       3,734,162       3,354,662                1,583       12,507   0.04     0.37  
Time deposits       4,447,871       5,142,938              42,232       93,264   0.95     1.81  
Interest-bearing deposits $ 26,374,895     $ 24,553,617   $        88,119     $ 189,178   0.33 %   0.77 %
Federal Home Loan Bank advances       1,236,478       1,156,106              19,581       18,193   1.58     1.57  
Other borrowings          514,657       496,693                9,928       12,773   1.93     2.57  
Subordinated notes          436,697       436,275              21,983       21,961   5.03     5.03  
Junior subordinated debentures          253,566       253,566              10,916       11,008   4.25     4.27  
Total interest-bearing liabilities $ 28,816,293     $ 26,896,257   $      150,527     $ 253,113   0.52 %   0.94 %
Non-interest-bearing deposits     12,638,518       9,432,090              
Other liabilities       1,068,498       1,116,304              
Equity       4,300,742       3,926,688              
Total liabilities and shareholders’ equity $ 46,824,051     $ 41,371,339              
Interest rate spread (4)(7)             2.40 %   2.45 %
Less:  Fully taxable-equivalent adjustment                  (3,601 )     (4,415 ) (0.01 )   (0.01 )
Net free funds/contribution (8) $ 14,974,537     $ 11,358,528         0.18     0.28  
Net interest income/margin (GAAP) (4)       $   1,124,957     $ 1,039,907   2.57 %   2.72 %
Fully taxable-equivalent adjustment                    3,601       4,415   0.01     0.01  
Net interest income/margin, fully taxable-equivalent (non-GAAP) (4)       $   1,128,558     $ 1,044,322   2.58 %   2.73 %

(1) Includes interest-bearing deposits from banks and securities purchased under resale agreements with original maturities of greater than three months. Cash equivalents include federal funds sold and securities purchased under resale agreements with original maturities of three months or less. 
(2) Investment securities includes investment securities classified as available-for-sale and held-to-maturity, and equity securities with readily determinable fair values. Equity securities without readily determinable fair values are included within other assets. 
(3) Interest income on tax-advantaged loans, trading securities and investment securities reflects a taxable-equivalent adjustment based on the marginal federal corporate tax rate in effect as of the applicable period. 
(4) See “Supplemental Non-GAAP Financial Measures/Ratios” at Table 18 for additional information on this performance measure/ratio. 
(5) Other earning assets include brokerage customer receivables and trading account securities. 
(6) Loans, net of unearned income, include non-accrual loans. 
(7) Interest rate spread is the difference between the yield earned on earning assets and the rate paid on interest-bearing liabilities. 
(8) Net free funds are the difference between total average earning assets and total average interest-bearing liabilities. The estimated contribution to net interest margin from net free funds is calculated using the rate paid for total interest-bearing liabilities.

 

TABLE 8: INTEREST RATE SENSITIVITY

As an ongoing part of its financial strategy, the Company attempts to manage the impact of fluctuations in market interest rates on net interest income. Management measures its exposure to changes in interest rates by modeling many different interest rate scenarios.

The following interest rate scenarios display the percentage change in net interest income over a one-year time horizon assuming increases of 100 and 200 basis points and a decrease of 100 basis points. The Static Shock Scenario results incorporate actual cash flows and repricing characteristics for balance sheet instruments following an instantaneous, parallel change in market rates based upon a static (i.e. no growth or constant) balance sheet. Conversely, the Ramp Scenario results incorporate management’s projections of future volume and pricing of each of the product lines following a gradual, parallel change in market rates over twelve months.  Actual results may differ from these simulated results due to timing, magnitude, and frequency of interest rate changes as well as changes in market conditions and management strategies. The interest rate sensitivity for both the Static Shock and Ramp Scenario is as follows:

Static Shock Scenario   +200
Basis
Points
  +100
 Basis
 Points
  -100
Basis
 Points
Dec 31, 2021            25.3 %            12.4 %            (8.5 )% 
Sep 30, 2021   24.3     11.5     (7.8 )
Jun 30, 2021   24.6     11.7     (6.9 )
Mar 31, 2021   22.0     10.2     (7.2 )
Dec 31, 2020   25.0     11.6     (7.9 )

 

Ramp Scenario +200
Basis
Points
  +100
Basis
Points
  -100
Basis
Points
Dec 31, 2021          13.9 %          6.9 %            (5.6 )%
Sep 30, 2021 10.8     5.4     (3.8 )
Jun 30, 2021 11.4     5.8     (3.3 )
Mar 31, 2021 10.7     5.4     (3.6 )
Dec 31, 2020 11.4     5.7     (3.3 )

 

TABLE 9: MATURITIES AND SENSITIVITIES TO CHANGES IN INTEREST RATES

  Loans repricing or maturity period    
As of December 31, 2021 One year or
less
  From one to five
years
  Over five years    
(In thousands)       Total
Commercial              
Fixed rate $             536,782   $           2,092,006   $          1,330,518   $          3,959,306
Fixed Rate – PPP                   40,533                    517,750                            —                   558,283
Variable rate              7,383,214                        3,207                            58                7,386,479
Total commercial $          7,960,529   $           2,612,963   $          1,330,576   $        11,904,068
Commercial real estate              
Fixed rate                 518,488                 2,376,629                   525,173                3,420,290
Variable rate              5,550,141                      19,855                            —                5,569,996
Total commercial real estate $          6,068,629   $           2,396,484   $             525,173   $          8,990,286
Home equity              
Fixed rate                   14,896                        3,059                            42                     17,997
Variable rate                 317,158                             —                            —                   317,158
Total home equity $             332,054   $                  3,059   $                      42   $             335,155
Residential real estate              
Fixed rate                   17,812                        5,834                   897,316                   920,962
Variable rate                   58,968                    237,706                   419,463                   716,137
Total residential real estate $               76,780   $              243,540   $          1,316,779   $          1,637,099
Premium finance receivables – commercial              
Fixed rate              4,677,500                    177,987                            —                4,855,487
Variable rate                          —                             —                            —                            —
Total premium finance receivables – commercial $          4,677,500   $              177,987   $                      —   $          4,855,487
Premium finance receivables – life insurance              
Fixed rate                     8,579                    474,465                     21,727                   504,771
Variable rate              6,538,039                             —                            —                6,538,039
Total premium finance receivables – life insurance $          6,546,618   $              474,465   $               21,727   $          7,042,810
Consumer and other              
Fixed rate                     4,094                        5,004                          656                       9,754
Variable rate                   14,445                             —                            —                     14,445
Total consumer and other $               18,539   $                  5,004   $                    656   $               24,199
               
Total per category              
Fixed rate              5,778,151                 5,134,984                2,775,432              13,688,567
Fixed rate – PPP                   40,533                    517,750                            —                   558,283
Variable rate            19,861,965                    260,768                   419,521              20,542,254
Total loans, net of unearned income $        25,680,649   $           5,913,502   $          3,194,953   $        34,789,104
               
               
Variable Rate Loan Pricing by Index:              
Prime             $          3,273,915
One- month LIBOR                          8,848,709
Three- month LIBOR                             285,441
Twelve- month LIBOR                          6,677,139
U.S. Treasury tenors                             107,037
SOFR tenors                             598,904
Thirty-Day Ameribor                               89,832
Other                             661,277
Total variable rate             $        20,542,254

LIBOR – London Interbank Offered Rate.
SOFR – Secured Overnight Financing Rate.
Ameribor – American Interbank Offered Rate.

Graph available at the following link: http://ml.globenewswire.com/Resource/Download/a9f90280-1a99-476a-b4f8-435648696df0

Source: Bloomberg

As noted in the table on the previous page, the majority of the Company’s portfolio is tied to LIBOR indices which, as shown in the table above, do not mirror the same changes as the Prime rate which has historically moved when the Federal Reserve raises or lowers interest rates.  Specifically, the Company has $8.8 billion of variable rate loans tied to one-month LIBOR and $6.7 billion of variable rate loans tied to twelve-month LIBOR. The above chart shows:

    Basis Point (bp) Change in
    Prime   1-month
LIBOR
  12-month
LIBOR
 
Fourth Quarter 2021   0 bps 2 bps 34 bps
Third Quarter 2021   0   -2   -1  
Second Quarter 2021   0   -1   -3  
First Quarter 2021   0   -3   -6  
Fourth Quarter 2020   0   -1   -2  

 

TABLE 10: ALLOWANCE FOR CREDIT LOSSES

    Three Months Ended Years Ended
    Dec 31,   Sep 30,   Jun 30,   Mar 31,   Dec 31, Dec 31,   Dec 31,
(Dollars in thousands)     2021       2021       2021       2021       2020     2021       2020  
Allowance for credit losses at beginning of period   $ 296,138     $ 304,121     $ 321,308     $ 379,969     $ 388,971   $ 379,969     $ 158,461  
Cumulative effect adjustment from the adoption of ASU 2016-13                                       47,418  
Provision for credit losses     9,299       (7,916 )     (15,299 )     (45,347 )     1,180     (59,263 )     214,220  
Initial allowance for credit losses recognized on PCD assets acquired during the period (1)     470                             470        
Other adjustments     5       (65 )     34       31       155     5       179  
Charge-offs:                          
Commercial     4,431       1,352       3,237       11,781       5,184     20,801       18,293  
Commercial real estate     495       406       1,412       980       6,637     3,293       15,960  
Home equity     135       59       142             683     336       2,061  
Residential real estate     1,067       10       3       2       114     1,082       891  
Premium finance receivables     2,314       1,390       2,077       3,239       4,214     9,020       15,472  
Consumer and other     157       112       104       114       198     487       528  
Total charge-offs     8,599       3,329       6,975       16,116       17,030     35,019       53,205  
Recoveries:                          
Commercial     389       816       902       452       4,168     2,559       5,092  
Commercial real estate     217       373       514       200       904     1,304       1,835  
Home equity     461       313       328       101       77     1,203       528  
Residential real estate     85       5       36       204       69     330       184  
Premium finance receivables     1,240       1,728       3,239       1,782       1,445     7,989       5,108  
Consumer and other     26       92       34       32       30     184       149  
Total recoveries     2,418       3,327       5,053       2,771       6,693     13,569       12,896  
Net charge-offs     (6,181 )     (2 )     (1,922 )     (13,345 )     (10,337 )   (21,450 )     (40,309 )
Allowance for credit losses at period end   $ 299,731     $ 296,138     $ 304,121     $ 321,308     $ 379,969   $ 299,731     $ 379,969  
                           
Annualized net charge-offs (recoveries) by category as a percentage of its own respective category’s average:      
Commercial     0.14 %     0.02 %     0.08 %     0.37 %     0.03 %   0.16 %     0.12 %
Commercial real estate     0.01       0.00       0.04       0.04       0.27     0.02       0.17  
Home equity     (0.38 )     (0.28 )     (0.20 )     (0.10 )     0.55     (0.23 )     0.33  
Residential real estate     0.25       0.00       (0.01 )     (0.06 )     0.02     0.05       0.06  
Premium finance receivables     0.04       (0.01 )     (0.04 )     0.06       0.11     0.01       0.11  
Consumer and other     0.95       0.26       0.69       0.57       0.78     0.66       0.52  
Total loans, net of unearned income     0.07 %     0.00 %     0.02 %     0.17 %     0.13 %   0.06 %     0.13 %
                           
Loans at period end   $ 34,789,104     $ 33,264,043     $ 32,911,187     $ 33,171,233     $ 32,079,073        
Allowance for loan losses as a percentage of loans at period end     0.71 %     0.75 %     0.79 %     0.84 %     1.00 %      
Allowance for loan and unfunded lending-related commitment losses as a percentage of loans at period end     0.86       0.89       0.92       0.97       1.18        
Allowance for loan and unfunded lending-related commitment losses as a percentage of loans at period end, excluding PPP loans     0.88       0.92       0.98       1.08       1.29        

(1) The initial allowance for credit losses on purchased credit deteriorated (“PCD”) loans acquired during the period measured approximately $2.8 million, of which approximately $2.3 million was charged-off related to PCD loans that met the Company’s charge-off policy at the time of acquisition. After considering these loans that were immediately charged-off, the net impact of PCD allowance for credit losses at the acquisition date was approximately $470,000.

 

TABLE 11: ALLOWANCE AND PROVISION FOR CREDIT LOSSES BY COMPONENT

    Three Months Ended Years Ended
    Dec 31,   Sep 30,   Jun 30,   Mar 31,   Dec 31, Dec 31,   Dec 31,
(In thousands)     2021       2021       2021       2021       2020     2021       2020  
Provision for loan losses   $ 4,929     $ (12,410 )   $ (14,731 )   $ (28,351 )   $ 3,597   $       (50,563 )   $ 188,493  
Provision for unfunded lending-related commitments losses     4,375       4,501       (558 )     (17,035 )     (2,413 )           (8,717 )     25,742  
Provision for held-to-maturity securities losses     (5 )     (7 )     (10 )     39       (4 )                17       (15 )
Provision for credit losses   $ 9,299     $ (7,916 )   $ (15,299 )   $ (45,347 )   $ 1,180   $       (59,263 )   $ 214,220  
                           
Allowance for loan losses   $ 247,835     $ 248,612     $ 261,089     $ 277,709     $ 319,374        
Allowance for unfunded lending-related commitments losses     51,818       47,443       42,942       43,500       60,536        
Allowance for loan losses and unfunded lending-related commitments losses     299,653       296,055       304,031       321,209       379,910        
Allowance for held-to-maturity securities losses     78       83       90       99       59        
Allowance for credit losses   $ 299,731     $ 296,138     $ 304,121     $ 321,308     $ 379,969        

              

TABLE 12: ALLOWANCE BY LOAN PORTFOLIO

The table below summarizes the calculation of allowance for loan losses and allowance for unfunded lending-related commitments losses for the Company’s loan portfolios as well as core and niche portfolios, as of December 31, 2021,  September 30, 2021, and June 30, 2021.

  As of Dec 31, 2021 As of Sep 30, 2021 As of Jun 30, 2021
(Dollars in thousands) Recorded
Investment
  Calculated
Allowance
  % of its
category’s
balance
Recorded
Investment
  Calculated
Allowance
  % of its
category’s
balance
Recorded
Investment
  Calculated
Allowance
  % of its
category’s
balance
Commercial:                              
Commercial, industrial and other, excluding PPP loans $ 11,345,785   $ 119,305   1.05 % $ 10,105,984   $ 109,780   1.09 % $ 9,562,869   $ 98,505   1.03 %
Commercial PPP loans   558,283     2   0.00     1,081,988     2   0.00     1,879,407     2   0.00  
Commercial real estate:                              
Construction and development   1,356,204     35,206   2.60     1,343,715     34,101   2.54     1,385,249     38,550   2.78  
Non-construction   7,634,082     109,377   1.43     7,541,999     105,934   1.40     7,293,120     119,972   1.65  
Home equity   335,155     10,699   3.19     347,662     10,939   3.15     369,806     11,207   3.03  
Residential real estate   1,637,099     8,782   0.54     1,547,736     16,272   1.05     1,530,285     15,684   1.02  
Premium finance receivables                              
Commercial insurance loans   4,855,487     15,246   0.31     4,616,977     17,996   0.39     4,521,871     19,346   0.43  
Life insurance loans   7,042,810     613   0.01     6,655,453     579   0.01     6,359,556     553   0.01  
Consumer and other   24,199     423   1.75     22,529     452   2.01     9,024     212   2.35  
Total loans, net of unearned income $ 34,789,104   $ 299,653   0.86 % $ 33,264,043   $ 296,055   0.89 % $ 32,911,187   $ 304,031   0.92 %
Total loans, net of unearned income, excluding PPP loans $ 34,230,821   $ 299,651   0.88 % $ 32,182,055   $ 296,053   0.92 % $ 31,031,780   $ 304,029   0.98 %
                               
Total core loans (1) $ 19,599,090   $ 260,511   1.33 % $ 18,690,730   $ 257,788   1.38 % $ 17,989,306   $ 267,999   1.49 %
Total niche loans (1)   14,631,731     39,140   0.27     13,491,325     38,265   0.28     13,042,474     36,030   0.28  
Total PPP loans   558,283     2   0.00     1,081,988     2   0.00     1,879,407     2   0.00  
                               

(1) See Table 1 for additional detail on core and niche loans.

 

TABLE 13: LOAN PORTFOLIO AGING

(Dollars in thousands)   Dec 31, 2021   Sep 30, 2021   Jun 30, 2021   Mar 31, 2021   Dec 31, 2020
Loan Balances:                    
Commercial                    
Nonaccrual   $ 20,399   $ 26,468   $ 23,232   $ 22,459   $ 21,743
90+ days and still accruing     15         1,244         307
60-89 days past due     24,262     9,768     5,204     13,292     6,900
30-59 days past due     43,861     25,224     18,478     35,541     44,381
Current     11,815,531     11,126,512     11,394,118     12,636,915     11,882,636
Total commercial   $ 11,904,068   $ 11,187,972   $ 11,442,276   $ 12,708,207   $ 11,955,967
Commercial real estate                    
Nonaccrual   $ 21,746   $ 23,706   $ 26,035   $ 34,380   $ 46,107
90+ days and still accruing                    
60-89 days past due     284     5,395     4,382     8,156     5,178
30-59 days past due     40,443     79,818     19,698     70,168     32,116
Current     8,927,813     8,776,795     8,628,254     8,432,075     8,410,731
Total commercial real estate   $ 8,990,286   $ 8,885,714   $ 8,678,369   $ 8,544,779   $ 8,494,132
Home equity                    
Nonaccrual   $ 2,574   $ 3,449   $ 3,478   $ 5,536   $ 6,529
90+ days and still accruing         164            
60-89 days past due         340     301     492     47
30-59 days past due     1,120     867     777     780     637
Current     331,461     342,842     365,250     383,445     418,050
Total home equity   $ 335,155   $ 347,662   $ 369,806   $ 390,253   $ 425,263
Residential real estate                    
Nonaccrual   $ 16,440   $ 22,633   $ 23,050   $ 21,553   $ 26,071
90+ days and still accruing                    
60-89 days past due     982     1,540     1,584     944     1,635
30-59 days past due     12,420     1,076     2,139     13,768     12,584
Current     1,607,257     1,522,487     1,503,512     1,385,708     1,219,308
Total residential real estate   $ 1,637,099   $ 1,547,736   $ 1,530,285   $ 1,421,973   $ 1,259,598
Premium finance receivables                    
Nonaccrual   $ 5,433   $ 7,300   $ 6,418   $ 9,690   $ 13,264
90+ days and still accruing     7,217     5,811     3,570     4,783     12,792
60-89 days past due     28,104     15,804     7,759     5,113     27,801
30-59 days past due     89,070     21,654     32,758     31,373     49,274
Current     11,768,473     11,221,861     10,830,922     10,019,079     9,808,794
Total premium finance receivables   $ 11,898,297   $ 11,272,430   $ 10,881,427