WINTRUST FINANCIAL CORP [WTFC] Filings

10-Q 1 wtfc-20220930.htm 10-Q wtfc-20220930

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 September 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, 60,765,273 shares, as of October 31, 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)	September 30, 2022		December 31, 2021		September 30, 2021
Assets
Cash and due from banks	$	489,590	$	411,150	$	462,244
Federal funds sold and securities purchased under resale agreements	57		700,055		55
Interest-bearing deposits with banks	3,968,605		5,372,603		5,232,315
Available-for-sale securities, at fair value	2,923,653		2,327,793		2,373,478
Held-to-maturity securities, at amortized cost, net of allowance for credit losses of $310, $78 and $83 at September 30, 2022, December 31, 2021 and September 30, 2021, respectively ($2.7 billion, $2.9 billion and $2.7 billion fair value at September 30, 2022, December 31, 2021 and September 30, 2021, respectively)	3,389,842		2,942,285		2,736,722
Trading account securities	179		1,061		1,103
Equity securities with readily determinable fair value	114,012		90,511		88,193
Federal Home Loan Bank and Federal Reserve Bank stock	178,156		135,378		135,408
Brokerage customer receivables	20,327		26,068		26,378
Mortgage loans held-for-sale, at fair value	376,160		817,912		925,312




Loans, net of unearned income	38,167,613		34,789,104		33,264,043
Allowance for loan losses	(246,110)		(247,835)		(248,612)


Net loans	37,921,503		34,541,269		33,015,431
Premises, software and equipment, net	763,029		766,405		748,872
Lease investments, net	244,822		242,082		243,933


Accrued interest receivable and other assets	1,316,305		1,084,115		1,166,917


Goodwill	653,079		655,149		645,792
Other acquisition-related intangible assets	23,620		28,307		30,118
Total assets	$	52,382,939	$	50,142,143	$	47,832,271

Liabilities and Shareholders’ Equity
Deposits:
Non-interest-bearing	$	13,529,277	$	14,179,980	$	13,255,417
Interest-bearing	29,267,914		27,915,605		26,697,141
Total deposits	42,797,191		42,095,585		39,952,558


Federal Home Loan Bank advances	2,316,071		1,241,071		1,241,071

Other borrowings	447,215		494,136		504,527

Subordinated notes	437,260		436,938		436,811
Junior subordinated debentures	253,566		253,566		253,566
Trade date securities payable	—		—		1,348
Accrued interest payable and other liabilities	1,493,656		1,122,159		1,032,073



Total liabilities	47,744,959		45,643,455		43,421,954
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 September 30, 2022, December 31, 2021 and September 30, 2021	125,000		125,000		125,000
Series E - $25,000 liquidation value; 11,500 shares issued and outstanding at September 30, 2022, December 31, 2021 and September 30, 2021	287,500		287,500		287,500
Common stock, no par value; $1.00 stated value; 100,000,000 shares authorized at September 30, 2022, December 31, 2021 and September 30, 2021; 60,743,335 shares issued at September 30, 2022, 58,891,780 shares issued at December 31, 2021 and 58,793,715 shares issued at September 30, 2021	60,743		58,892		58,794
Surplus	1,891,621		1,685,572		1,674,062
Treasury stock, at cost, no shares at September 30, 2022, 1,837,689 shares at December 31, 2021, and 1,837,689 shares at September 30, 2021	—		(109,903)		(109,903)
Retained earnings	2,731,844		2,447,535		2,373,447
Accumulated other comprehensive (loss) income	(458,728)		4,092		1,417
Total shareholders’ equity	4,637,980		4,498,688		4,410,317
Total liabilities and shareholders’ equity	$	52,382,939	$	50,142,143	$	47,832,271

See accompanying notes to unaudited consolidated financial statements.

Table of Contents

WINTRUST FINANCIAL CORPORATION AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED)


	Three Months Ended				Nine Months Ended
(In thousands, except per share data)	September 30, 2022		September 30, 2021		September 30, 2022		September 30, 2021
Interest income
Interest and fees on loans	$	402,689	$	285,587	$	1,008,888	$	844,388
Mortgage loans held-for-sale	5,371		7,716		17,198		24,935
Interest-bearing deposits with banks	15,621		2,000		23,098		4,352
Federal funds sold and securities purchased under resale agreements	1,845		—		3,640		—
Investment securities	38,569		25,189		107,508		68,076
Trading account securities	7		3		16		6
Federal Home Loan Bank and Federal Reserve Bank stock	2,109		1,777		5,704		5,291
Brokerage customer receivables	267		185		646		457
Total interest income	466,478		322,457		1,166,698		947,505
Interest expense
Interest on deposits	45,916		19,305		79,755		71,547
Interest on Federal Home Loan Bank advances	6,812		4,931		16,506		14,658
Interest on other borrowings	4,008		2,501		8,981		7,678
Interest on subordinated notes	5,485		5,480		16,484		16,469
Interest on junior subordinated debentures	2,809		2,744		6,426		8,172
Total interest expense	65,030		34,961		128,152		118,524
Net interest income	401,448		287,496		1,038,546		828,981
Provision for credit losses	6,420		(7,916)		30,943		(68,562)
Net interest income after provision for credit losses	395,028		295,412		1,007,603		897,543
Non-interest income
Wealth management	33,124		31,531		95,887		91,530
Mortgage banking	27,221		55,794		137,766		219,872
Service charges on deposit accounts	14,349		14,149		45,520		39,434
(Losses) gains on investment securities, net	(3,103)		(2,431)		(13,682)		8
Fees from covered call options	1,366		1,157		6,177		2,545
Trading (losses) gains, net	(7)		58		4,058		39
Operating lease income, net	12,644		12,807		43,126		39,487
Other	15,888		23,409		48,362		59,438
Total non-interest income	101,482		136,474		367,214		452,353
Non-interest expense
Salaries and employee benefits	176,095		170,912		515,776		524,538
Software and equipment	24,126		22,029		71,186		63,807
Operating lease equipment depreciation	9,448		10,013		27,930		30,733
Occupancy, net	17,727		18,158		53,202		55,841
Data processing	7,767		7,104		23,282		20,072
Advertising and marketing	16,600		13,443		45,139		33,294
Professional fees	7,544		7,052		23,821		21,943
Amortization of other acquisition-related intangible assets	1,492		1,877		4,680		5,923
FDIC insurance	7,186		6,750		21,864		19,713
Other real estate owned expense, net	229		(1,531)		(509)		(1,013)
Other	28,255		26,337		83,064		74,294
Total non-interest expense	296,469		282,144		869,435		849,145
Income before taxes	200,041		149,742		505,382		500,751
Income tax expense	57,080		40,605		140,517		133,357
Net income	$	142,961	$	109,137	$	364,865	$	367,394
Preferred stock dividends	6,991		6,991		20,973		20,973
Net income applicable to common shares	$	135,970	$	102,146	$	343,892	$	346,421
Net income per common share—Basic	$	2.24	$	1.79	$	5.86	$	6.08
Net income per common share—Diluted	$	2.21	$	1.77	$	5.78	$	6.00
Cash dividends declared per common share	$	0.34	$	0.31	$	1.02	$	0.93
Weighted average common shares outstanding	60,738		57,000		58,679		56,985
Dilutive potential common shares	837		753		814		728
Average common shares and dilutive common shares	61,575		57,753		59,493		57,713

See accompanying notes to unaudited consolidated financial statements.

Table of Contents

WINTRUST FINANCIAL CORPORATION AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF COMPREHENSIVE (LOSS) INCOME (UNAUDITED)

WINTRUST FINANCIAL CORP [WTFC] Filings
WINTRUST FINANCIAL CORP [WTFCM] Filings
WINTRUST FINANCIAL CORP [WTFCP] Filings
10-Q	[2022-11-08]
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