WINTRUST FINANCIAL CORP [WTFC] Filings

10-Q 1 wtfc-20220630.htm 10-Q wtfc-20220630

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

_________________________________________

FORM 10-Q

_________________________________________


☑			QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended June 30, 2022


☐			TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from to

Commission File Number 001-35077

_____________________________________

WINTRUST FINANCIAL CORPORATION

(Exact name of registrant as specified in its charter)


Illinois			36-3873352
(State of incorporation or organization)			(I.R.S. Employer Identification No.)

9700 W. Higgins Road, Suite 800

Rosemont, Illinois 60018

(Address of principal executive offices)

(847) 939-9000

(Registrant’s telephone number, including area code)


Title of Each Class	Ticker Symbol	Name of Each Exchange on Which Registered
Common Stock, no par value	WTFC	The NASDAQ Global Select Market
Fixed-to-Floating Rate Non-Cumulative Perpetual Preferred Stock, Series D, no par value	WTFCM	The NASDAQ Global Select Market
Depositary Shares, Each Representing a 1/1,000th Interest in a Share of	WTFCP	The NASDAQ Global Select Market
6.875% Fixed-Rate Reset Non-Cumulative Perpetual Preferred Stock, Series E, no par value

____________________________________

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☑ No ☐

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files). Yes ☑ No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act. (Check one):

Large accelerated filer

☑

Accelerated filer

☐

Non-accelerated filer

☐

(Do not check if a smaller reporting company)

Smaller reporting company

☐

Emerging growth company

☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No ☑

Indicate the number of shares outstanding of each of the issuer’s classes of common stock, as of the latest practicable date.

Common Stock — no par value, 60,736,285 shares, as of July 29, 2022

Table of Contents

TABLE OF CONTENTS


		Page
	PART I. — FINANCIAL INFORMATION
ITEM 1.	Financial Statements	1
ITEM 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	58
ITEM 3.	Quantitative and Qualitative Disclosures About Market Risk	97
ITEM 4.	Controls and Procedures	99
	PART II. — OTHER INFORMATION
ITEM 1.	Legal Proceedings	100
ITEM 1A.	Risk Factors	101
ITEM 2.	Unregistered Sales of Equity Securities and Use of Proceeds	101
ITEM 3.	Defaults Upon Senior Securities	NA
ITEM 4.	Mine Safety Disclosures	NA
ITEM 5.	Other Information	NA
ITEM 6.	Exhibits	102
	Signatures	103

Table of Contents

PART I

ITEM 1. FINANCIAL STATEMENTS


WINTRUST FINANCIAL CORPORATION AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CONDITION
	(Unaudited)				(Unaudited)
(In thousands, except share data)	June 30, 2022		December 31, 2021		June 30, 2021
Assets
Cash and due from banks	$	498,891	$	411,150	$	434,957
Federal funds sold and securities purchased under resale agreements	475,056		700,055		52
Interest-bearing deposits with banks	3,266,541		5,372,603		4,707,415
Available-for-sale securities, at fair value	2,970,121		2,327,793		2,188,608
Held-to-maturity securities, at amortized cost, net of allowance for credit losses of $83, $78 and $90 at June 30, 2022, December 31, 2021 and June 30, 2021, respectively ($2.9 billion, $2.9 billion and $2.5 billion fair value at June 30, 2022, December 31, 2021 and June 30, 2021, respectively)	3,413,469		2,942,285		2,498,232
Trading account securities	1,010		1,061		2,667
Equity securities with readily determinable fair value	93,295		90,511		86,316
Federal Home Loan Bank and Federal Reserve Bank stock	136,138		135,378		136,625
Brokerage customer receivables	21,527		26,068		23,093
Mortgage loans held-for-sale, at fair value	513,232		817,912		984,994




Loans, net of unearned income	37,053,103		34,789,104		32,911,187
Allowance for loan losses	(251,769)		(247,835)		(261,089)


Net loans	36,801,334		34,541,269		32,650,098
Premises, software and equipment, net	762,381		766,405		752,375
Lease investments, net	223,813		242,082		219,023


Accrued interest receivable and other assets	1,112,697		1,084,115		1,185,811
Trade date securities receivable	—		—		189,851

Goodwill	654,709		655,149		646,336
Other acquisition-related intangible assets	25,118		28,307		31,997
Total assets	$	50,969,332	$	50,142,143	$	46,738,450

Liabilities and Shareholders’ Equity
Deposits:
Non-interest-bearing	$	13,855,844	$	14,179,980	$	12,796,110
Interest-bearing	28,737,482		27,915,605		26,008,506
Total deposits	42,593,326		42,095,585		38,804,616


Federal Home Loan Bank advances	1,166,071		1,241,071		1,241,071

Other borrowings	482,787		494,136		518,493

Subordinated notes	437,162		436,938		436,719
Junior subordinated debentures	253,566		253,566		253,566

Accrued interest payable and other liabilities	1,308,797		1,122,159		1,144,974



Total liabilities	46,241,709		45,643,455		42,399,439
Shareholders’ Equity:
Preferred stock, no par value; 20,000,000 shares authorized:


Series D - $25 liquidation value; 5,000,000 shares issued and outstanding at June 30, 2022, December 31, 2021 and June 30, 2021	125,000		125,000		125,000
Series E - $25,000 liquidation value; 11,500 shares issued and outstanding at June 30, 2022, December 31, 2021 and June 30, 2021	287,500		287,500		287,500
Common stock, no par value; $1.00 stated value; 100,000,000 shares authorized at June 30, 2022, December 31, 2021 and June 30, 2021; 60,721,889 shares issued at June 30, 2022, 58,891,780 shares issued at December 31, 2021 and 58,770,304 shares issued at June 30, 2021	60,722		58,892		58,770
Surplus	1,880,913		1,685,572		1,669,002
Treasury stock, at cost, no shares at June 30, 2022, 1,837,689 shares at December 31, 2021, and 1,703,627 shares at June 30, 2021	—		(109,903)		(100,363)
Retained earnings	2,616,525		2,447,535		2,288,969
Accumulated other comprehensive (loss) income	(243,037)		4,092		10,133
Total shareholders’ equity	4,727,623		4,498,688		4,339,011
Total liabilities and shareholders’ equity	$	50,969,332	$	50,142,143	$	46,738,450

See accompanying notes to unaudited consolidated financial statements.

Table of Contents

WINTRUST FINANCIAL CORPORATION AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED)


	Three Months Ended				Six Months Ended
(In thousands, except per share data)	June 30, 2022		June 30, 2021		June 30, 2022		June 30, 2021
Interest income
Interest and fees on loans	$	320,501	$	284,701	$	606,199	$	558,801
Mortgage loans held-for-sale	5,740		8,183		11,827		17,219
Interest-bearing deposits with banks	5,790		1,153		7,477		2,352
Federal funds sold and securities purchased under resale agreements	1,364		—		1,795		—
Investment securities	36,541		23,623		68,939		42,887
Trading account securities	4		1		9		3
Federal Home Loan Bank and Federal Reserve Bank stock	1,823		1,769		3,595		3,514
Brokerage customer receivables	205		149		379		272
Total interest income	371,968		319,579		700,220		625,048
Interest expense
Interest on deposits	18,985		24,298		33,839		52,242
Interest on Federal Home Loan Bank advances	4,878		4,887		9,694		9,727
Interest on other borrowings	2,734		2,568		4,973		5,177
Interest on subordinated notes	5,517		5,512		10,999		10,989
Interest on junior subordinated debentures	2,050		2,724		3,617		5,428
Total interest expense	34,164		39,989		63,122		83,563
Net interest income	337,804		279,590		637,098		541,485
Provision for credit losses	20,417		(15,299)		24,523		(60,646)
Net interest income after provision for credit losses	317,387		294,889		612,575		602,131
Non-interest income
Wealth management	31,369		30,690		62,763		59,999
Mortgage banking	33,314		50,584		110,545		164,078
Service charges on deposit accounts	15,888		13,249		31,171		25,285
(Losses) gains on investment securities, net	(7,797)		1,285		(10,579)		2,439
Fees from covered call options	1,069		1,388		4,811		1,388
Trading gains (losses), net	176		(438)		4,065		(19)
Operating lease income, net	15,007		12,240		30,482		26,680
Other	13,916		20,375		32,474		36,029
Total non-interest income	102,942		129,373		265,732		315,879
Non-interest expense
Salaries and employee benefits	167,326		172,817		339,681		353,626
Software and equipment	24,250		20,866		47,060		41,778
Operating lease equipment depreciation	8,774		9,949		18,482		20,720
Occupancy, net	17,651		17,687		35,475		37,683
Data processing	8,010		6,920		15,515		12,968
Advertising and marketing	16,615		11,305		28,539		19,851
Professional fees	7,876		7,304		16,277		14,891
Amortization of other acquisition-related intangible assets	1,579		2,039		3,188		4,046
FDIC insurance	6,949		6,405		14,678		12,963
Other real estate owned expense, net	294		769		(738)		518
Other	29,344		24,051		54,809		47,957
Total non-interest expense	288,668		280,112		572,966		567,001
Income before taxes	131,661		144,150		305,341		351,009
Income tax expense	37,148		39,041		83,437		92,752
Net income	$	94,513	$	105,109	$	221,904	$	258,257
Preferred stock dividends	6,991		6,991		13,982		13,982
Net income applicable to common shares	$	87,522	$	98,118	$	207,922	$	244,275
Net income per common share—Basic	$	1.51	$	1.72	$	3.61	$	4.29
Net income per common share—Diluted	$	1.49	$	1.70	$	3.56	$	4.24
Cash dividends declared per common share	$	0.34	$	0.31	$	0.68	$	0.62
Weighted average common shares outstanding	58,063		57,049		57,632		56,977
Dilutive potential common shares	775		726		823		691
Average common shares and dilutive common shares	58,838		57,775		58,455		57,668

See accompanying notes to unaudited consolidated financial statements.

Table of Contents

WINTRUST FINANCIAL CORPORATION AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF COMPREHENSIVE (LOSS) INCOME (UNAUDITED)


	Three Months Ended				Six Months Ended
(In thousands)	June 30, 2022		June 30, 2021		June 30, 2022		June 30, 2021
Net income	$	94,513	$	105,109	$	221,904

WINTRUST FINANCIAL CORP [WTFC] Filings
WINTRUST FINANCIAL CORP [WTFCM] Filings
WINTRUST FINANCIAL CORP [WTFCP] Filings
10-Q	[2022-08-08]
10-Q	[2022-05-06]
10-K	[2022-02-25]
10-Q	[2021-11-08]
10-Q	[2021-08-06]
10-Q	[2021-05-07]
10-K	[2021-02-26]
10-Q	[2020-11-06]
10-Q	[2020-08-07]
10-Q	[2020-05-05]
10-K	[2020-02-28]
10-Q	[2019-11-08]
10-Q	[2019-08-09]
10-Q	[2019-05-09]
10-K	[2019-02-28]
10-Q	[2018-11-09]
10-Q	[2018-08-08]
10-Q	[2018-05-09]
10-K	[2018-02-28]
10-Q	[2017-11-08]
10-Q	[2017-08-08]
10-Q	[2017-05-09]
10-K	[2017-02-28]
10-Q	[2016-11-08]
10-Q	[2016-08-08]
10-Q	[2016-05-09]
10-K	[2016-02-29]
10-Q	[2015-11-09]
10-Q	[2015-08-10]
10-Q	[2015-05-08]
10-K	[2015-02-27]
10-Q	[2014-11-07]
10-Q	[2014-08-08]
10-Q	[2014-05-08]
10-K	[2014-02-28]
10-Q	[2013-11-07]
10-Q	[2013-08-08]
10-Q	[2013-05-09]
10-K	[2013-02-28]
10-Q	[2012-11-08]
10-Q	[2012-08-09]
10-Q	[2012-05-09]
10-K	[2012-02-29]

WINTRUST FINANCIAL CORP [WTFC] Filings

WINTRUST FINANCIAL CORP [WTFCM] Filings

WINTRUST FINANCIAL CORP [WTFCP] Filings