WINTRUST FINANCIAL CORP [WTFC] Filings

10-Q 1 wtfc-20210930.htm 10-Q wtfc-20210930

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, 2021


☐			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
Series D Preferred Stock, 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 Series E Preferred Stock, 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, 57,007,314 shares, as of October 31, 2021

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	98
ITEM 4.	Controls and Procedures	100
	PART II. — OTHER INFORMATION
ITEM 1.	Legal Proceedings	101
ITEM 1A.	Risk Factors	102
ITEM 2.	Unregistered Sales of Equity Securities and Use of Proceeds	102
ITEM 3.	Defaults Upon Senior Securities	NA
ITEM 4.	Mine Safety Disclosures	NA
ITEM 5.	Other Information	NA
ITEM 6.	Exhibits	103
	Signatures	104

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, 2021		December 31, 2020		September 30, 2020
Assets
Cash and due from banks	$	462,244	$	322,415	$	308,639
Federal funds sold and securities purchased under resale agreements	55		59		56
Interest-bearing deposits with banks	5,232,315		4,802,527		3,825,823
Available-for-sale securities, at fair value	2,373,478		3,055,839		2,946,459
Held-to-maturity securities, at amortized cost, net of allowance for credit losses of $83, $59 and $63 at September 30, 2021, December 31, 2020 and September 30, 2020, respectively ($2.7 billion, $593.8 million and $575.9 million fair value at September 30, 2021, December 31, 2020 and September 30, 2020, respectively)	2,736,722		579,138		560,267
Trading account securities	1,103		671		1,720
Equity securities with readily determinable fair value	88,193		90,862		54,398
Federal Home Loan Bank and Federal Reserve Bank stock	135,408		135,588		135,568
Brokerage customer receivables	26,378		17,436		16,818
Mortgage loans held-for-sale, at fair value	925,312		1,272,090		959,671




Loans, net of unearned income	33,264,043		32,079,073		32,135,555
Allowance for loan losses	(248,612)		(319,374)		(325,959)


Net loans	33,015,431		31,759,699		31,809,596
Premises, software and equipment, net	748,872		768,808		774,288
Lease investments, net	243,933		242,434		230,373


Accrued interest receivable and other assets	1,166,917		1,351,455		1,424,728


Goodwill	645,792		645,707		644,644
Other intangible assets	30,118		36,040		38,670
Total assets	$	47,832,271	$	45,080,768	$	43,731,718
Liabilities and Shareholders’ Equity
Deposits:
Non-interest-bearing	$	13,255,417	$	11,748,455	$	10,409,747
Interest-bearing	26,697,141		25,344,196		25,434,675
Total deposits	39,952,558		37,092,651		35,844,422


Federal Home Loan Bank advances	1,241,071		1,228,429		1,228,422

Other borrowings	504,527		518,928		507,395

Subordinated notes	436,811		436,506		436,385
Junior subordinated debentures	253,566		253,566		253,566
Trade date securities payable	1,348		200,907		—
Accrued interest payable and other liabilities	1,032,073		1,233,786		1,387,439



Total liabilities	43,421,954		40,964,773		39,657,629
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, 2021, December 31, 2020 and September 30, 2020	125,000		125,000		125,000
Series E - $25,000 liquidation value; 11,500 shares issued and outstanding at September 30, 2021, December 31, 2020 and September 30, 2020	287,500		287,500		287,500
Common stock, no par value; $1.00 stated value; 100,000,000 shares authorized at September 30, 2021, December 31, 2020 and September 30, 2020; 58,793,715 shares issued at September 30, 2021, 58,473,252 shares issued at December 31, 2020 and 58,322,775 shares issued at September 30, 2020	58,794		58,473		58,323
Surplus	1,674,062		1,649,990		1,647,049
Treasury stock, at cost, 1,837,689 shares at September 30, 2021 and 1,703,627 shares at December 31, 2020, and 720,784 shares at September 30, 2020	(109,903)		(100,363)		(44,891)
Retained earnings	2,373,447		2,080,013		2,001,949
Accumulated other comprehensive income (loss)	1,417		15,382		(841)
Total shareholders’ equity	4,410,317		4,115,995		4,074,089
Total liabilities and shareholders’ equity	$	47,832,271	$	45,080,768	$	43,731,718

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, 2021		September 30, 2020		September 30, 2021		September 30, 2020
Interest income
Interest and fees on loans	$	285,587	$	280,479	$	844,388	$	877,064
Mortgage loans held-for-sale	7,716		5,791		24,935		13,720
Interest-bearing deposits with banks	2,000		1,181		4,352		7,259
Federal funds sold and securities purchased under resale agreements	—		—		—		102
Investment securities	25,189		21,819		68,076		81,391
Trading account securities	3		6		6		26
Federal Home Loan Bank and Federal Reserve Bank stock	1,777		1,774		5,291		5,116
Brokerage customer receivables	185		106		457		361
Total interest income	322,457		311,156		947,505		985,039
Interest expense
Interest on deposits	19,305		39,084		71,547		156,576
Interest on Federal Home Loan Bank advances	4,931		4,947		14,658		13,241
Interest on other borrowings	2,501		3,012		7,678		9,994
Interest on subordinated notes	5,480		5,474		16,469		16,452
Interest on junior subordinated debentures	2,744		2,703		8,172		8,266
Total interest expense	34,961		55,220		118,524		204,529
Net interest income	287,496		255,936		828,981		780,510
Provision for credit losses	(7,916)		25,026		(68,562)		213,040
Net interest income after provision for credit losses	295,412		230,910		897,543		567,470
Non-interest income
Wealth management	31,531		24,957		91,530		73,534
Mortgage banking	55,794		108,544		219,872		259,194
Service charges on deposit accounts	14,149		11,497		39,434		33,182
(Losses) gains on investment securities, net	(2,431)		411		8		(3,140)
Fees from covered call options	1,157		—		2,545		2,292
Trading gains (losses), net	58		183		39		(902)
Operating lease income, net	12,807		11,717		39,487		35,486
Other	23,409		13,284		59,438		46,182
Total non-interest income	136,474		170,593		452,353		445,828
Non-interest expense
Salaries and employee benefits	170,912		164,042		524,538		454,960
Software and equipment	22,029		17,251		63,807		47,931
Operating lease equipment depreciation	10,013		9,425		30,733		27,977
Occupancy, net	18,158		15,830		55,841		50,270
Data processing	7,104		5,689		20,072		24,468
Advertising and marketing	13,443		7,880		33,294		26,446
Professional fees	7,052		6,488		21,943		20,896
Amortization of other intangible assets	1,877		2,701		5,923		8,384
FDIC insurance	6,750		6,772		19,713		17,988
OREO expense, net	(1,531)		(168)		(1,013)		(807)
Other	26,337		28,309		74,294		79,715
Total non-interest expense	282,144		264,219		849,145		758,228
Income before taxes	149,742		137,284		500,751		255,070
Income tax expense	40,605		29,969		133,357		63,284
Net income	$	109,137	$	107,315	$	367,394	$	191,786
Preferred stock dividends	6,991		10,286		20,973		14,386
Net income applicable to common shares	$	102,146	$	97,029	$	346,421	$	177,400
Net income per common share—Basic	$	1.79	$	1.68	$	6.08	$	3.08
Net income per common share—Diluted	$	1.77	$	1.67	$	6.00	$	3.06
Cash dividends declared per common share	$	0.31	$	0.28	$	0.93	$	0.84
Weighted average common shares outstanding	57,000		57,597		56,985		57,595
Dilutive potential common shares	753		449		728		469
Average common shares and dilutive common shares	57,753		58,046		57,713		58,064

See accompanying notes to unaudited consolidated financial statements.

Table of Contents

WINTRUST FINANCIAL CORPORATION AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (UNAUDITED)


	Three Months Ended				Nine Months Ended
(In thousands)	September 30, 2021		September 30, 2020		September 30, 2021		September 30, 2020
Net income	$	109,137	$	107,315	$	367,394	$	191,786
Unrealized (losses) gains on available-for-sale securities
Before tax	(14,141)		(14,563)		(68,555)		81,859
Tax effect	3,767		3,881		18,290		(21,816)
Net of tax	(10,374)		(10,682)		(50,265)		60,043
Reclassification of net gains on available-for-sale securities included in net income
Before tax	350		50		1,144		200
Tax effect	(94)		(14)		(307)</

WINTRUST FINANCIAL CORP [WTFC] Filings
WINTRUST FINANCIAL CORP [WTFCM] Filings
WINTRUST FINANCIAL CORP [WTFCP] Filings
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