WINTRUST FINANCIAL CORP
For the period ended Jun 30, 2024. Filed Aug 8, 2024.
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A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Jun 30, 2024 · Filed Aug 8, 2024
WTFC$151.27-0.3%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2024-03-31; filed 2024-05-09.
0001015328-24-000143
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2024-06-30; filed 2024-08-08.
0001015328-24-000187
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 209 previous paragraphs and 224 current paragraphs.
159 unchanged; 42 reworded; 9 added; 7 removed; 1 previous and 14 current paragraphs rearranged.
Tables are not compared: 27 previous and 33 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (9)
Current report
Second Quarter Highlights
Current report
Non-interest income totaled $121.1 million in the second quarter of 2024 compared to $113.0 million in the second quarter of 2023. The increase is primarily due to $4.6 million of gains recognized on the sale of premium finance receivables in the second quarter of 2024 and an increase in service charges on deposits of $1.9 million partially off set by decreased mortgage banking revenue of $857,000 in the second quarter of 2024 compared to the second quarter of 2023 (see “Non-Interest Income” for further detail).
Current report
Deposit beta
Current report
Deposit betas are calculated as the change in the Company's deposit cost divided by the change in the upper limit of the federal funds target range established by the Federal Open Market Committee. Total cycle-to-date (December 31, 2021 to June 30, 2024) deposit beta was 53% as of June 30, 2024 as compared to 38% as of June 30, 2023. Deposit beta increase was driven by competitive deposit pricing to fund quality loan growth.
Current report
Service charges on deposits increased for the three and six months ended June 30, 2024 as compared to the same periods in 2023 primarily as a result of increased account analysis services fees. Service charges on deposit accounts include fees charged to deposit customers for various services, including account analysis services, and are based on factors such as the size and type of customer, type of product and number of transactions. The fees are based on a standard schedule of fees and, depending on the nature of the service performed, the service is performed at a point in time or over a period of a month.
Current report
The Company recognized net losses on investment securities for the three and six months ended June 30, 2024 of $4.3 million and $3.0 million, respectively. There were no net losses for the three month period ended June 30, 2023. However, there were $1.4 million of net gains for the six month period ended June 30, 2023. The net losses for the three and six months ended June 30, 2024 were primarily due to losses on the Company’s equity investment securities recorded in the second quarter of 2024. See Note (5) “Investment Securities” to the Consolidated Financial Statements in Item 1 of this report for more information on net gains and losses on investment securities.
Current report
NM - Not meaningful.
Current report
(1)Total average loans includes nonaccrual loans.
Current report
(1)Total average loans includes nonaccrual loans.
Removed paragraphs (7)
Previous report
First Quarter Highlights
Previous report
Non-interest income totaled $140.6 million in the first quarter of 2024 compared to $107.8 million in the first quarter of 2023. The overall increase is primarily due to a $20.0 million gain recognized in the first quarter of 2024 related to the sale of the Company’s Retirement Benefits Advisors (“RBA”) division within its wealth management business and an increase in mortgage banking by $9.4 million in first quarter of 2024 compared to first quarter of 2023 (see “Non-Interest Income” for further detail).
Previous report
(1)Includes nonaccrual loans.
Previous report
Uninsured deposits are estimated based on the methodologies and assumptions used for the Company’s regulatory reporting requirements. In accordance with the instructions described in the FDIC’s July 24, 2023 Financial Institution Letter: Estimated Uninsured Deposits Reporting Expectations, the Company had approximately $14.9 billion of uninsured deposits as of March 31, 2024 of which $2.5 billion were fully collateralized deposits. The net position of $12.4 billion of uninsured and uncollateralized deposits represents approximately 27% of total deposits as of March 31, 2024. The Company had total liquidity sources, including cash and collateralized funding sources of $14.9 billion or approximately 120% of uninsured and uncollateralized deposits as of March 31, 2024.
Previous report
Announced Acquisition
Previous report
On April 15, 2024, the Company announced the signing of a definitive agreement to acquire Macatawa Bank Corporation (“Macatawa”). Macatawa offers a full range of banking, retail and commercial lending, wealth management and ecommerce services to individuals, businesses and governmental entities from a network of 26 full-service branches located throughout communities in Kent, Ottawa and northern Allegan counties in the state of Michigan. As of December 31, 2023, Macatawa had approximately $2.7 billion in assets, $2.4 billion in deposits and $1.3 billion in loans.
Previous report
•the severity, magnitude and duration of the COVID-19 pandemic, including the continued emergence of variant strains, and the direct and indirect impact of such pandemic, as well as responses to the pandemic by the government, businesses and consumers, on the economy, our financial results, operations and personnel, commercial activity and demand across our business and our customers’ businesses.
Reworded paragraphs (42)
Previous wording
The following discussion and analysis of the financial condition of Wintrust Financial Corporation and its subsidiaries (collectively, “Wintrust” or the “Company”) as of March 31, 2024 compared with December 31, 2023 and March 31, 2023, and the results of operations for the three month periods ended March 31, 2024 and March 31, 2023, should be read in conjunction with the unaudited consolidated financial statements and notes contained in this report and the risk factors discussed under Item 1A of the Company’s Annual Report on Form 10-K for the year ended December 31, 2023 (“2023 Form 10-K”) and in Part II, Item 1A, of this Form 10-Q. This discussion contains forward-looking statements that involve risks and uncertainties and, as such, future results could differ significantly from management’s current expectations. See the last section of this discussion for further information on forward-looking statements.
Current wording
The following discussion and analysis of the financial condition of Wintrust Financial Corporation and its subsidiaries (collectively, “Wintrust” or the “Company”) as of June 30, 2024 compared with December 31, 2023 and June 30, 2023, and the results of operations for the three and six month periods ended June 30, 2024 and June 30, 2023, should be read in conjunction with the unaudited consolidated financial statements and notes contained in this report and the risk factors discussed under Item 1A of the Company’s Annual Report on Form 10-K for the year ended December 31, 2023 (“2023 Form 10-K”) and in Part II, Item 1A, of this Form 10-Q. This discussion contains forward-looking statements that involve risks and uncertainties and, as such, future results could differ significantly from management’s current expectations. See the last section of this discussion for further information on forward-looking statements.
Previous wording
The Company recorded net income of $187.3 million for the first quarter of 2024 compared to $180.2 million in the first quarter of 2023. The results for the first quarter of 2024 demonstrate increased net interest income primarily due to substantial growth in earning assets as well as the Company’s ability to navigate industry disruptions during the period due to the Company’s strong deposit franchise and balanced business model. Other key drivers included a favorable valuation adjustment to the fair value of MSRs, net of servicing hedge, and continued good credit quality metrics. Comprehensive income includes 1) net income as presented on the Company’s Consolidated Statements of Income and 2) other comprehensive income or loss from unrealized gains and losses on the Company’s available-for-sale investment securities portfolios and derivative contracts designated as cash flow hedges as well as foreign currency translation adjustments. Comprehensive income totaled $63.4 million for the first quarter of 2024 compared to $240.4 million for the first quarter of 2023.
Current wording
The Company recorded net income of $152.4 million for the second quarter of 2024 compared to $154.8 million in the second quarter of 2023. The results for the second quarter of 2024 demonstrate increased net interest income primarily due to substantial growth in earning assets as well as the Company’s ability to navigate industry disruptions during the period due to the Company’s strong deposit franchise and balanced business model. This was partially offset by increased provision for credit losses due to loan growth across a majority of segments coupled with losses experienced in the Commercial, Commercial Real Estate and Premium Finance Receivables portfolios. Comprehensive income includes 1) net income as presented on the Company’s Consolidated Statements of Income and 2) other comprehensive income or loss from unrealized gains and losses on the Company’s available-for-sale investment securities portfolios and derivative contracts designated as cash flow hedges as well as foreign currency translation adjustments. Comprehensive income totaled $125.3 million for the second quarter of 2024 compared to $48.1 million for the second quarter of 2023.
Previous wording
The Company increased its loan portfolio from $39.6 billion at March 31, 2023 and $42.1 billion at December 31, 2023 to $43.2 billion at March 31, 2024. The increase in the current period compared to the prior periods was primarily a result of organic growth in several portfolios, including the commercial, commercial real estate, residential real estate loans held for investment portfolios, and property and casualty insurance premium finance receivable portfolios. For more information regarding changes in the Company’s loan portfolio, see Financial Condition – Interest Earning Assets and Note (6) “Loans” of the Consolidated Financial Statements in Item 1 of this report.
Current wording
The Company increased its loan portfolio from $41.0 billion at June 30, 2023 and $42.1 billion at December 31, 2023 to $44.7 billion at June 30, 2024. The increase in the current period compared to the prior periods was primarily a result of organic growth in several portfolios, including the commercial, commercial real estate, residential real estate loans held for investment portfolios, and property and casualty insurance premium finance receivable portfolios. For more information regarding changes in the Company’s loan portfolio, see Financial Condition – Interest Earning Assets and Note (6) “Loans” of the Consolidated Financial Statements in Item 1 of this report.
Previous wording
The Company recorded net interest income of $464.2 million in the first quarter of 2024 compared to $458.0 million in the first quarter of 2023. This increase in net interest income recorded in the first quarter of 2024 compared to the first quarter of 2023 resulted primarily from growth in earning assets, specifically a $3.0 billion increase in average loans. Net interest margin was 3.57% (3.59% on a fully taxable-equivalent basis, non-GAAP) in the first quarter of 2024 compared to 3.81% (3.83% on a fully taxable-equivalent basis, non-GAAP) in the first quarter of 2023. The decrease is primarily due to higher rates on interest-bearing liabilities, most notably interest-bearing deposits (see “Net Interest Income” for further detail).
Current wording
The Company recorded net interest income of $470.6 million in the second quarter of 2024 compared to $447.5 million in the second quarter of 2023. This increase in net interest income recorded in the second quarter of 2024 compared to the second quarter of 2023 resulted primarily from growth in earning assets, specifically a $3.7 billion increase in average loans. Net interest margin was 3.50% (3.52% on a fully taxable-equivalent basis, non-GAAP) in the second quarter of 2024 compared to 3.64% (3.66% on a fully taxable-equivalent basis, non-GAAP) in the second quarter of 2023. The decrease is primarily due to higher rates on interest-bearing liabilities, most notably interest-bearing deposits (see “Net Interest Income” for further detail).
Previous wording
Non-interest expense totaled $333.1 million in the first quarter of 2024, an increase of $34.0 million, or 11%, compared to the first quarter of 2023. This increase compared to the first quarter of 2023 was primarily attributable to increased salaries and employee benefits of $18.4 million, increased FDIC insurance due to the Company’s recognition of approximately $5.2 million accrued as a result of the FDIC special assessment on uninsured deposits in response to certain bank failures occurring in 2023 and increased software and equipment expenses of $3.0 million. (see “Non-Interest Expense” for further detail).
Current wording
Non-interest expense totaled $340.4 million in the second quarter of 2024, an increase of $19.7 million, or 6%, compared to the second quarter of 2023. This increase compared to the second quarter of 2023 was primarily attributable to increased salaries and employee benefits of $13.6 million and increased software and equipment expenses of $3.0 million. (see “Non-Interest Expense” for further detail).
Previous wording
Management considers the maintenance of adequate liquidity to be important to the management of risk. Accordingly, during the first quarter of 2024, the Company continued its practice of maintaining appropriate funding capacity to provide the Company with adequate liquidity for its ongoing operations. In this regard, the Company benefited from its strong deposit base, a liquid short-term investment portfolio and its access to funding from a variety of external funding sources. See “Deposits” and “Other Funding Sources” for additional information regarding liquidity sources.
Current wording
Management considers the maintenance of adequate liquidity to be important to the management of risk. Accordingly, during the second quarter of 2024, the Company continued its practice of maintaining appropriate funding capacity to provide the Company with adequate liquidity for its ongoing operations. In this regard, the Company benefited from its strong deposit base, a liquid short-term investment portfolio and its access to funding from a variety of external funding sources. See “Deposits” and “Other Funding Sources” for additional information regarding liquidity sources.
Previous wording
The Company’s key operating measures and growth rates for the three months ended March 31, 2024, as compared to the same period last year, are shown below:
Current wording
The Company’s key operating measures and growth rates for the three and six months ended June 30, 2024, as compared to the same period last year, are shown below:
Previous wording
The allowance for credit losses represents management’s estimate of expected credit losses over the life of a financial asset carried at amortized cost. Determining the amount of the allowance for credit losses is considered a critical accounting estimate because it requires significant judgment and the use of estimates related to the fair value of the underlying collateral and amount and timing of expected future cash flows on individually assessed financial assets, estimated credit losses on pools of loans with similar risk characteristics, and consideration of reasonable and supportable forecasts of macroeconomic conditions, all of which are susceptible to significant change. At March 31, 2024, the loan and held-to-maturity debt securities portfolios represent 82% of the total assets on the Company’s consolidated balance sheet. The Company also maintains an allowance for lending-related commitments, specifically unfunded loan commitments and letters of credit, which relates to certain amounts the Company is committed to lend (not unconditionally cancelable) but for which funds have not yet been disbursed.
Current wording
The allowance for credit losses represents management’s estimate of expected credit losses over the life of a financial asset carried at amortized cost. Determining the amount of the allowance for credit losses is considered a critical accounting estimate because it requires significant judgment and the use of estimates related to the fair value of the underlying collateral and amount and timing of expected future cash flows on individually assessed financial assets, estimated credit losses on pools of loans with similar risk characteristics, and consideration of reasonable and supportable forecasts of macroeconomic conditions, all of which are susceptible to significant change. At June 30, 2024, the loan and held-to-maturity debt securities portfolios represent 81% of the total assets on the Company’s consolidated balance sheet. The Company also maintains an allowance for lending-related commitments, specifically unfunded loan commitments and letters of credit, which relates to certain amounts the Company is committed to lend (not unconditionally cancelable) but for which funds have not yet been disbursed.
Previous wording
Net income for the quarter ended March 31, 2024 totaled $187.3 million, an increase of $7.1 million, or 4%, compared to the quarter ended March 31, 2023. On a per share basis, net income for the first quarter of 2024 totaled $2.89 per diluted common share compared to $2.80 for the first quarter of 2023.
Current wording
Net income for the quarter ended June 30, 2024 totaled $152.4 million, a decrease of $2.4 million, or 2%, compared to the quarter ended June 30, 2023. On a per share basis, net income for the second quarter of 2024 totaled $2.32 per diluted common share compared to $2.38 for the second quarter of 2023.
Previous wording
The increase in net income for the first quarter of 2024 as compared to the same period in the prior year is primarily attributable to increased net interest income, higher mortgage banking revenue, and a $20.0 million gain recognized in the first quarter of 2024 related to the sale of the Company’s RBA division within its wealth management business, partially offset by higher salaries and benefits and FDIC insurance special assessment. See “Net Interest Income”, “Non-interest Income”, “Non-interest Expense” and “Credit Quality” for further detail.
Current wording
The decrease in net income for the second quarter of 2024 as compared to the same period in the prior year is primarily attributable to increased non-interest expense, partially offset by increased net interest income and non-interest income. See “Net Interest Income”, “Non-interest Income”, “Non-interest Expense” and “Credit Quality” for further detail.
Previous wording
The following table presents a summary of the Company’s average balances, net interest income and related net interest margins, including a calculation on a fully taxable-equivalent basis, for the first quarter of 2024 as compared to the fourth quarter of 2023 (sequential quarters) and first quarter of 2023 (linked quarters):
Current wording
The following table presents a summary of the Company’s average balances, net interest income and related net interest margins, including a calculation on a fully taxable-equivalent basis, for the second quarter of 2024 as compared to the first quarter of 2024 (sequential quarters) and second quarter of 2023 (linked quarters):
Previous wording
(3)Interest income on tax-advantaged loans, trading securities and investment securities reflects a tax-equivalent adjustment based on the marginal federal corporate tax rate in effect as of the applicable period. The total adjustments for the three months ended March 31, 2024, December 31, 2023 and March 31, 2023 were $2.8 million, $2.7 million and $2.4 million, respectively.
Current wording
(3)Interest income on tax-advantaged loans, trading securities and investment securities reflects a tax-equivalent adjustment based on the marginal federal corporate tax rate in effect as of the applicable period. The total adjustments for the three months ended June 30, 2024, March 31, 2024 and June 30, 2023 were $2.9 million, $2.8 million and $2.4 million, respectively.
Previous wording
For the first quarter of 2024, net interest income totaled $464.2 million, an decrease of $5.8 million as compared to the fourth quarter of 2023, and an increase of $6.2 million as compared to the first quarter of 2023. Net interest margin was 3.57% (3.59% on a FTE basis, non-GAAP) during the first quarter of 2024 compared to 3.62% (3.64% on a FTE basis, non-GAAP) during the fourth quarter of 2023, and 3.81% (3.83% on a FTE basis, non-GAAP) during the first quarter of 2023.
Current wording
For the second quarter of 2024, net interest income totaled $470.6 million, an increase of $6.4 million as compared to the first quarter of 2024, and an increase of $23.1 million as compared to the second quarter of 2023. Net interest margin was 3.50% (3.52% on a FTE basis, non-GAAP) during the second quarter of 2024 compared to 3.57% (3.59% on a FTE basis, non-GAAP) during the first quarter of 2024, and 3.64% (3.66% on a FTE basis, non-GAAP) during the second quarter of 2023.
Previous wording
The following table presents an analysis of the changes in the Company’s net interest income on a FTE basis (non-GAAP) comparing the three month ended March 31, 2024 to each of the three month periods ended December 31, 2023 and March 31, 2023. The reconciliations set forth the changes in the net interest income on a FTE basis (non-GAAP) as a result of changes in volumes, changes in rates and differing number of days in each period:
Current wording
The following table presents an analysis of the changes in the Company’s net interest income on a FTE basis (non-GAAP) comparing the three month ended June 30, 2024 to each of the three month periods ended March 31, 2024 and June 30, 2023 and six month periods ended June 30, 2024 and 2023. The reconciliations set forth the changes in the net interest income on a FTE basis (non-GAAP) as a result of changes in volumes, changes in rates and differing number of days in each period:
Previous wording
Wealth management revenue increased by $4.9 million in the first quarter of 2024 as compared to the first quarter of 2023 primarily due to increased asset management fees as a result of higher assets under management during the period.
Current wording
Wealth management revenue increased by $1.6 million and $6.4 million in the three and six months ended June 30, 2024 as compared to the same periods of 2023, respectively. For the three months ended June 30, 2024, the increase is primarily due to increased brokerage income as compared to the same period in 2023. On a year-to-date basis, the increased income is primarily due to increased asset management fees as a result of higher assets under management when compared to same period in the prior year.
Previous wording
Mortgage banking revenue increased for the three months ended March 31, 2024 as compared to the same period in 2023 as a result of higher net revenue related to MSR activity and valuation adjustments and an increase in loans originated for sale. Mortgage banking revenue includes revenue from activities related to originating, selling and servicing residential real estate loans for the secondary market. A main factor in the mortgage banking revenue recognized by the Company is the volume of mortgage loans originated or purchased for sale. Mortgage loans originated for sale totaled $475.6 million in the first quarter of 2024 as compared to $372.3 million in the first quarter of 2023. The increase in originations from the comparative three month period was driven by growth in both purchase and refinance originations as housing inventories have improved and interest rates pulled back from peak levels reached in 2023. The percentage of origination volume from refinancing activities was 25% for the three months ended March 31, 2024, as compared to 20%, for the same period in 2023.
Current wording
Mortgage banking revenue decreased slightly for the three months ended June 30, 2024 as compared to the same period in 2023 due to lower net revenue related to MSR activity and valuation adjustments, partially offset by increased production revenue. On a year-to-date basis, mortgage banking revenue increased for the six months ended June 30, 2024 as compared to the same period in 2023 as a result of higher net revenue related to MSR activity and higher production revenue from increased mortgage production. Mortgage banking revenue includes revenue from activities related to originating, selling and servicing residential real estate loans for the secondary market. A main factor in the mortgage banking revenue recognized by the Company is the volume of mortgage loans originated or purchased for sale. Mortgage loans originated for sale totaled $722.2 million in the second quarter of 2024 as compared to $578.0 million in the second quarter of 2023. On a year-to-date basis, mortgage loans originated for sale totaled $1.2 billion for the six months ended June 30, 2024 as compared to $1.0 billion for the six months ended June 30, 2023. The increase in originations from the comparative three and six month periods was driven by growth in both purchase and refinance originations as housing inventories have improved and interest rates pulled back from peak levels reached in 2023. The percentage of origination volume from refinancing activities was 17% and 20% for the three and six months ended June 30, 2024, as compared to 16% and 18%, for the same periods in 2023, respectively.
Previous wording
The Company records MSRs at fair value on a recurring basis. For the three months ended March 31, 2024, the fair value of the MSRs portfolio increased as a favorable fair value adjustment of $7.6 million was recorded as well as retained servicing rights led to capitalization of$5.4 million, partially offset by a reduction in value of $4.4 million due to payoffs, paydowns and repurchases of the existing portfolio. See Note (9) “Mortgage Servicing Rights (“MSRs”)” to the Consolidated Financial Statements in Item 1 of this report for a summary of the changes in the carrying value of MSRs.
Current wording
The Company records MSRs at fair value on a recurring basis. For the three months ended June 30, 2024, the fair value of the MSRs portfolio increased as retained servicing rights led to capitalization of$8.2 million and a favorable fair value adjustment of $877,000 was recorded, partially offset by a reduction in value of $5.5 million due to payoffs, paydowns and repurchases of the existing portfolio. On a year-to-date basis, the fair value of MSRs increased due to a favorable fair value adjustment of $8.5 million as well as retained servicing rights led to capitalization of $13.6 million, partially offset by a reduction in value of $9.9 million due to payoffs, paydowns and repurchases of the existing portfolio. See Note (9) “Mortgage Servicing Rights
Previous wording
Mortgage banking revenue is also impacted by changes in the fair value of derivative contracts held to economically hedge a portion of the fair value adjustments related to the Company’s MSRs portfolio. The change in fair value of the derivative contracts held as an economic hedge was an unfavorable $2.6 million for the three months ended March 31, 2024.
Current wording
Mortgage banking revenue is also impacted by changes in the fair value of derivative contracts held to economically hedge a portion of the fair value adjustments related to the Company’s MSRs portfolio. The change in fair value of the derivative contracts held as an economic hedge was an unfavorable $772,000 and $3.3 million for the three and six months ended June 30, 2024, respectively.
Previous wording
The Company has typically written call options with terms of less than three months against certain U.S. Treasury and agency securities held in its portfolio for liquidity and other purposes. Management has effectively entered into these transactions with the goal of economically hedging security positions and enhancing its overall return on its investment portfolio. These option transactions are designed to increase the total return associated with holding certain investment securities and do not qualify as hedges pursuant to accounting guidance. There were no outstanding call option contracts at March 31, 2024 and 2023.
Current wording
Fees from covered call options for the three and six months ended June 30, 2024 decreased $522,000 and $6.1 million, respectively, when compared to the same periods in the prior year, respectively. The decreased income was primarily because the Company sold less options than the prior year for both comparative periods. The Company has typically written call options with terms of less than three months against certain U.S. Treasury and agency securities held in its portfolio for liquidity and other purposes. Management has effectively entered into these transactions with the goal of economically hedging security positions and enhancing its overall return on its investment portfolio. These option transactions are designed to increase the total return associated with holding certain investment securities and do not qualify as hedges pursuant to accounting guidance. There were no outstanding call option contracts at June 30, 2024 and 2023.
Previous wording
Miscellaneous non-interest income includes loan servicing fees, income from other investments, and other fees. This category of income increased $23.1 million for the three months ended March 31, 2024 compared to 2023. The increased income was primarily due to a $20.0 million gain recognized in the first quarter of 2024 related to the sale of the Company’s RBA division within its wealth management business.
Current wording
Miscellaneous non-interest income includes loan servicing fees, income from other investments, and other fees. This category of income increased $7.5 million and $30.6 million for the three and six months ended June 30, 2024 compared to the same periods in 2023, respectively. For the three months ended June 30, 2024, miscellaneous income increased compared to the same period in 2023 primarily due to a $4.6 million gain recognized in the second quarter of 2024 on the sale of premium finance receivables. The increased income on a year-to-date basis was primarily due to a $20.0 million gain recognized in the first quarter of 2024 related to the sale of the Company’s RBA division within its wealth management business.
Previous wording
Salaries and employee benefits expense increased for the three months ended March 31, 2024 as compared to the same period in 2023. The increase was primarily due to commissions and incentive compensation as a result of increased incentive bonus accruals and higher commission expense related to increased mortgage production as well as commissions related to the sale of the Company’s RBA division within its wealth management business in the first quarter of 2024.
Current wording
Salaries and employee benefits expense increased for the three and six months ended June 30, 2024 as compared to the same periods in 2023. The increase was primarily due to elevated commissions from increased mortgage production as well as higher salaries due the Company’s annual merit increase. Additionally, the increase is also due to commissions related to the sale of the Company’s RBA division within its wealth management business in the first quarter of 2024.
Previous wording
Software and equipment expense increased for the three months ended March 31, 2024 as compared to the same period in 2023 as a result of higher software license fees as well as higher computer and software depreciation expense as the Company invests in enhancements to the digital customer experience, upgrades to infrastructure and enhancements to information security capabilities.
Current wording
Software and equipment expense increased for the three and six months ended June 30, 2024 as compared to the same periods in 2023 as a result of higher software license fees as well as higher computer and software depreciation expense as the Company invests in enhancements to the digital customer experience, upgrades to infrastructure and enhancements to information security capabilities.
Previous wording
FDIC insurance expense increased for the three months ended March 31, 2024 compared to the same period in 2023 primarily due to the Company’s recognition of approximately $5.2 million accrued as a result of the FDIC special assessment on uninsured deposits in response to certain bank failures occurring in 2023.
Current wording
FDIC insurance expense increased for the three and six months ended June 30, 2024 compared to the same periods in 2023. On a year-to-date basis, the increase is primarily due to the Company’s recognition of approximately $5.2 million accrued in the first quarter of 2024 as a result of the FDIC special assessment on uninsured deposits in response to certain bank failures that occurred in 2023 as compared to the six months ended June 30, 2023. For the three months ended June 30, 2024, the increased expense is primarily due to deposit and asset growth as compared to the three months ended June 30, 2023.
Previous wording
The Company recorded income tax expense of $62.7 million in the first quarter of 2024 compared to $63.4 million in the first quarter of 2023. The effective tax rates were 25.07% in the first quarter of 2024 compared to 26.01% in the first quarter of 2023.
Current wording
The Company recorded income tax expense of $59.0 million in the second quarter of 2024 compared to $56.7 million in the second quarter of 2023. The effective tax rates were 27.90% in the second quarter of 2024 compared to 26.81% in the second quarter of 2023. During the first six months of 2024, the Company recorded income tax expense of $121.6 million compared to $120.0 million for the first six months of 2023. The effective tax rates were 26.36% for the first six months of 2024 and 26.38% for the first six months of 2023.
Previous wording
The effective tax rates were partially impacted by the tax effects related to share-based compensation which fluctuate based on the Company’s stock price and timing of employee stock option exercises and vesting of other shared-based awards. The
Current wording
The effective tax rates were partially impacted by the tax effects related to share-based compensation which fluctuate based on the Company’s stock price and timing of employee stock option exercises and vesting of other shared-based awards. The Company recorded net excess tax benefits of $4.4 million in the first six months of 2024, compared to net excess tax benefits of $2.8 million in the first six months of 2023 related to share-based compensation, most of which was recorded in the first quarter for each year.
Previous wording
The community banking segment’s net interest income for the quarter ended March 31, 2024 totaled $363.7 million as compared to $369.8 million for the same period in 2023, a decrease of $6.2 million, or 2%. The decrease in the three month period was primarily attributable to increased interest expense on deposits. The community banking segment’s non-interest income totaled $74.6 million in the first quarter of 2024, an increase of $5.9 million, or 9%, when compared to the first quarter of 2023 total of $68.7 million. The increase in thethree month period was primarily the result of increased mortgage banking revenue due to the increase in the fair value of MSRs related to the changes in fair value model assumptions. The community banking segment recorded provision for credit losses of$20.4 million for the three months ended March 31, 2024, compared to $21.1 million for the same periods in 2023. The decrease in provision for credit losses for thethree month period wasmainly related to narrower forecasted Baa credit spreads. The community banking segment’s net income for the quarter ended March 31, 2024 totaled $120.0 million, an decrease of $14.2 million as compared to net income in the first quarter of 2023 of $134.2 million.
Current wording
The community banking segment’s net interest income for the quarter ended June 30, 2024 totaled $358.8 million as compared to $346.2 million for the same period in 2023, an increase of $12.6 million, or 4%. On a year-to-date basis, net interest income for the segment increased by $6.4 million from $716.1 million for the six months ended June 30, 2023 to $722.5 million for the six months ended June 30, 2024. The increase in the three and six month period was primarily attributable to increased interest and fees on loans. The community banking segment’s non-interest income totaled$71.6 million in the second quarter of 2024, anincrease of$3.5 million, or 5%, when compared to the second quarter of 2023 total of$68.1 million. On a year-to-date basis, non-interest income totaled$146.3 million for thesix months ended June 30, 2024, anincrease of$9.4 million, or 7%, compared to$136.9 million for thesix months ended June 30, 2023. Theincrease in thesix month period was primarily the result of increased mortgage banking revenue due to the increase in the fair value of MSRs related to the changes in fair value model assumptions. The community banking segment recorded provision for credit losses of$36.3 million and $56.7 million, respectively, for the three and six months ended June 30, 2023, compared to$26.7 million and $47.8 million, respectively, for the same periods in 2023. Theincrease in provision for credit losses for thethree and six month period wasprimarily the result of loan growth coupled with losses experienced in the Commercial and Commercial Real Estate portfolios. The community banking segment’s net income for the quarter ended June 30, 2024 totaled$91.2 million, adecrease of$11.3 million as compared to net income in the second quarter of 2023 of $102.5 million. On a year-to-date basis, the net income of the community banking segment for the six months ended June 30, 2024 totaled $211.3 million as compared to $236.7 million for the six months ended June 30, 2023.
Previous wording
The specialty finance segment’s net interest income totaled $82.3 million for the quarter ended March 31, 2024, compared to $70.4 million for the same period in 2023, an increase of $11.9 million, or 17%. The increase for the three month period was primarily due to loan growth and increased interest rates on the premium finance receivables portfolios. The specialty finance segment’s non-interest income increased to $27.3 million from $25.8 million for the three months ended March 31, 2024 and 2023, respectively. Our property and casualty insurance premium finance operations, life insurance finance operations, lease financing operations and accounts receivable finance operations accounted for 47%, 32%, 19% and 2%, respectively, of the total revenues of our specialty finance business for the three month period ended March 31, 2024. The net income of the specialty finance segment for the quarter ended March 31, 2024 totaled $42.5 million as compared to $36.7 million for the quarter ended March 31, 2023.
Current wording
The specialty finance segment’s net interest income totaled $95.2 million for the quarter ended June 30, 2024, compared to $85.0 million for the same period in 2023, an increase of $10.2 million, or 12%. On a year-to-date basis, net interest income for the segment increased $22.1 million, or 14% compared to the same period in 2023. The increase for the three and six month period was primarily due to loan growth and increased interest rates on the premium finance receivables portfolios. The specialty finance segment’s non-interest income increased to $32.3 million from $31.7 million for the three months ended June 30, 2024 and 2023, respectively, and stood at $59.6 million and $57.5 million for the six months ended June 30, 2024 and 2023, respectively. Our property and casualty insurance premium finance operations, life insurance finance operations, lease financing operations and accounts receivable finance operations accounted for 45%, 35%, 2% and 18%, respectively, of the total revenues of our specialty finance business for the six month period ended June 30, 2024. The net income of the specialty finance segment for the quarter ended June 30, 2024 totaled $53.1 million as compared to $46.4 million for the quarter ended June 30, 2023. On a year-to-date basis, the net income of the specialty finance segment for the six months ended June 30, 2024 totaled $95.6 million as compared to $83.1 million for the six months ended June 30, 2023.
Previous wording
The wealth management segment reported net interest income of $7.8 million for the first quarter of 2024 compared to $9.0 million in the same quarter of 2023, an decrease of $1.2 million, or 13%. Net interest income for this segment is primarily comprised of an allocation of the net interest income earned by the community banking segment on non-interest-bearing and interest-bearing wealth management customer account balances on deposit at the banks. Wealth management customer account balances on deposit at the banks averaged $1.5 billion and $2.2 billion in the first three months of 2024 and 2023, respectively. This segment recorded non-interest income of $58.5 million for the first quarter of 2024 compared to $30.3 million for the first quarter of 2023. The increase was primarily due to a $20.0 million gain recognized in the first quarter of 2024 related to the sale of the Company’s RBA division within the wealth management business. Distribution of wealth management services through each bank continues to be a focus of the Company. The Company is committed to growing the wealth management segment in order to better service its customers and create a more diversified revenue stream. The wealth management segment’s net income totaled $24.7 million for the first quarter of 2024 compared to $9.2 million for the first quarter of 2023.
Current wording
The wealth management segment reported net interest income of $7.9 million for the second quarter of 2024 compared to $7.4 million in the same quarter of 2023, an increase of $524,000, or 7%. On a year-to-date basis, net interest income totaled $15.7 million for the first six months of 2024, as compared to $16.4 million for the first six months of 2023. Net interest income for this segment is primarily comprised of an allocation of the net interest income earned by the community banking segment on non-interest-bearing and interest-bearing wealth management customer account balances on deposit at the banks. Wealth management customer account balances on deposit at the banks averaged $1.5 billion and $1.9 billion in the first six months of 2024 and 2023, respectively. This segment recorded non-interest income of $35.6 million for the second quarter of 2024 compared to $33.4 million for the second quarter of 2023. On a year-to-date basis, this segment recorded non-interest income of $94.1 million for the first six months of 2024 as compared to $63.7 million for the first six months of 2023. The increase was primarily due to a $20.0 million gain recognized in the first quarter of 2024 related to the sale of the Company’s RBA division within the wealth management business. Distribution of wealth management services through each bank continues to be a focus of the Company. The Company is committed to growing the wealth management segment in order to better service its customers and create a more diversified revenue stream. The wealth management segment’s net income totaled $8.1 million for the second quarter of 2024 compared to $5.8 million for the second quarter of 2023. On a year-to-date basis, the wealth management segment’s net income totaled $32.8 million and $15.1 million for the six month period ended June 30, 2024 and 2023, respectively.
Previous wording
Total assets were $57.6 billion at March 31, 2024, representing an increase of $4.7 billion, or 9%, when compared to March 31, 2023 and an increase of approximately $1.3 billion, or 9% on an annualized basis, when compared to December 31, 2023. Total funding, which includes deposits, all notes and advances, including secured borrowings and the junior subordinated debentures, was $50.4 billion at March 31, 2024, $49.1 billion at December 31, 2023, and $46.3 billion at March 31, 2023. See Notes (5), (6), (10), (11) and (12) of the Consolidated Financial Statements presented under Item 1 of this report for additional period-end detail on the Company’s interest-earning assets and funding liabilities.
Current wording
Total assets were $59.8 billion at June 30, 2024, representing an increase of $5.5 billion, or 10%, when compared to June 30, 2023 and an increase of approximately $2.2 billion, or 15% on an annualized basis, when compared to March 31, 2024. Total funding, which includes deposits, all notes and advances, including secured borrowings and the junior subordinated debentures, was $52.4 billion at June 30, 2024, $50.4 billion at March 31, 2024, and $47.4 billion at June 30, 2023. See Notes (5), (6), (10), (11) and (12) of the Consolidated Financial Statements presented under Item 1 of this report for additional period-end detail on the Company’s interest-earning assets and funding liabilities.
Previous wording
Mortgage loans held-for-sale. Mortgage loans held-for-sale represents such loans awaiting subsequent sale in the secondary market with such sales eliminating the interest-rate risk associated with these loans, as they are predominantly long-term fixed rate loans, and provide a source of non-interest revenue. The increase in average balance from 2023 to 2024 was primarily due to higher mortgage origination production.
Current wording
Mortgage loans held-for-sale. Mortgage loans held-for-sale represents such loans awaiting subsequent sale in the secondary market with such sales eliminating the interest-rate risk associated with these loans, as they are predominantly long-term fixed rate loans, and provide a source of non-interest revenue. The increase in average balance for the second quarter of 2024 as compared to the sequential and prior year periods is primarily due to higher mortgage origination production.
Previous wording
Loans, net of unearned income. Growth realized in the combined commercial and commercial real estate loan categories for the first quarter of 2024 as compared to the sequential and prior year periods is primarily attributable to increased business development efforts. The aggregate balances of these loan categories comprised 58%, 57% and 58% of the average loan portfolio in the first quarter of 2024, fourth quarter of 2023 and first quarter of 2023, respectively.
Current wording
Loans, net of unearned income. Growth realized in the combined commercial and commercial real estate loan categories for the second quarter of 2024 as compared to the sequential and prior year periods is primarily attributable to increased business development efforts. The aggregate balances of these loan categories comprised 58%, 58% and 57% of the average loan portfolio in the second quarter of 2024, first quarter of 2024 and second quarter of 2023, respectively.
Previous wording
Residential real estate loans averaged $2.7 billion in the first quarter of 2024, and increased $394.7 million, or 17% from the average balance of $2.3 billion in same period of 2023. Additionally, compared to the quarter ended December 31, 2023, the average balance increased $91.3 million, or 14% on an annualized basis. Growth is due to the Company continuing to allocate a portion of its mortgage production for investment instead of for subsequent sale and servicing in the secondary market.
Current wording
Residential real estate loans averaged $2.9 billion in the second quarter of 2024, and increased $440.4 million, or 18% from the average balance of $2.5 billion in the same period of 2023. Additionally, compared to the quarter ended March 31, 2024, the average balance increased $162.9 million, or 24% on an annualized basis. Growth is due to the Company continuing to allocate a portion of its mortgage production for investment instead of for subsequent sale and servicing in the secondary market.
Previous wording
The increase in the premium finance receivables during the first quarter of 2024 compared to the first quarter of 2023 was the result of continued originations within the portfolio due to hardening insurance market conditions driving a higher average size of new property and casualty insurance premium finance receivables as well as effective marketing and customer servicing. Approximately $4.6 billion of premium finance receivables were originated in the first quarter of 2024 compared to $3.8 billion during the same period of 2023. Premium finance receivables consist of a property and casualty portfolio and a life portfolio comprising approximately 46% and 54%, respectively, of the average total balance of premium finance receivables for the first quarter of 2024, and 42% and 58%, respectively, for the first quarter of 2023.
Current wording
The increase in the premium finance receivables during the second quarter of 2024 compared to the second quarter of 2023 was the result of continued originations within the portfolio due to hardening insurance market conditions driving a higher average size of new property and casualty insurance premium finance receivables as well as effective marketing and customer servicing. The increase was in spite of a loan sale transaction of approximately $742 million of property and casualty insurance premium finance receivables during the second quarter of 2024. Approximately $5.5 billion of premium finance receivables were originated in the second quarter of 2024 compared to $5.0 billion during the same period of 2023. Premium finance receivables consist of a property and casualty portfolio and a life portfolio comprising approximately 47% and 53%, respectively, of the average total balance of premium finance receivables for the second quarter of 2024, and 43% and 57%, respectively, for the second quarter of 2023.
Previous wording
We make commercial loans for many purposes, including working capital lines, which are generally renewable annually and supported by business assets, personal guarantees and additional collateral. Such loans may vary in size based on customer need. Primarily as a result of growth in the Company’s commercial loan portfolio our allowance for credit losses in our commercial loan portfolio increased to $166.5 million as of March 31, 2024 compared to $149.5 million as of March 31, 2023.
Current wording
We make commercial loans for many purposes, including working capital lines, which are generally renewable annually and supported by business assets, personal guarantees and additional collateral. Such loans may vary in size based on customer need. Primarily as a result of growth in the Company’s commercial loan portfolio our allowance for credit losses in our commercial loan portfolio increased to $182.0 million as of June 30, 2024 compared to $143.1 million as of June 30, 2023.
Previous wording
Our commercial real estate loans are generally secured by a first mortgage lien and assignment of rents on the property. Since most of our bank branches are located in the Chicago metropolitan area and southern Wisconsin, 67.8% of our commercial real estate loan portfolio is located in this region as of March 31, 2024. We have been able to effectively manage our total non-performing commercial real estate loans, aided by our credit management process. As of March 31, 2024, our allowance for credit losses related to this portfolio was $226.1 million compared to $194.8 million as of March 31, 2023. The increase in the allowance for credit losses is primarily a result of growth in our commercial real estate portfolio as well as a deteriorated forecast in the CREPI macroeconomic variable. The table below sets forth the commercial real estate loans by property type and owner vs. non-owner occupied.
Current wording
Our commercial real estate loans are generally secured by a first mortgage lien and assignment of rents on the property. Since most of our bank branches are located in the Chicago metropolitan area and southern Wisconsin, 66.0% of our commercial real estate loan portfolio is located in this region as of June 30, 2024. We have been able to effectively manage our total non-performing commercial real estate loans, aided by our credit management process. As of June 30, 2024, our allowance for credit losses related to this portfolio was $223.7 million compared to $215.7 million as of June 30, 2023. Theincrease in the allowance for credit losses is primarily a result of growth in our commercial real estate portfolio as well as a deteriorated forecast in the CREPI macroeconomic variable. The table below sets forth the commercial real estate loans by property type and owner vs. non-owner occupied.
Previous wording
As of March 31, 2024, excluding early buy-out loans guaranteed by U.S. government agencies, $94.9 million, or 0.2% of all loans, were 60 to 89 days (or two payments) past due and $296.9 million, or 0.7% of all loans, were 30 to 59 days (or one payment) past due. As of December 31, 2023, excluding early buy-out loans guaranteed by U.S. government agencies, $69.9 million, or 0.2% of all loans, were 60 to 89 days (or two payments) past due and $227.6 million, or 0.5% of all loans, 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 loan portfolios continue to exhibit low delinquency ratios. Home equity loans at March 31, 2024 that were current with regard to the contractual terms of the loan agreement represent 99.2% of the total home equity portfolio. Residential real estate loans, excluding early buy-out loans guaranteed by U.S. government agencies, at March 31, 2024 that were current with regards to the contractual terms of the loan agreements comprise 98.5% of total residential real estate loans outstanding. For more information regarding delinquent loans as of March 31, 2024, see Note (7) “Allowance for Credit Losses” in Item 1 of this report.
Current wording
As of June 30, 2024, excluding early buy-out loans guaranteed by U.S. government agencies, $59.4 million, or 0.1% of all loans, were 60 to 89 days (or two payments) past due and $139.8 million, or 0.3% of all loans, were 30 to 59 days (or one payment) past due. As of March 31, 2024, excluding early buy-out loans guaranteed by U.S. government agencies, $94.9 million, or 0.2% of all loans, were 60 to 89 days (or two payments) past due and $296.9 million, or 0.7% of all loans, 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 loan portfolios continue to exhibit low delinquency ratios. Home equity loans at June 30, 2024 that were current with regard to the contractual terms of the loan agreement represent 99.3% of the total home equity portfolio. Residential real estate loans, excluding early buy-out loans guaranteed by U.S. government agencies, at June 30, 2024 that were current with regards to the contractual terms of the loan agreements comprise 99.3% of total residential real estate loans outstanding. For more information regarding delinquent loans as of June 30, 2024, see Note (7) “Allowance for Credit Losses” in Item 1 of this report.
Previous wording
Total deposits at March 31, 2024 were $46.4 billion, an increase of $3.7 billion, or 9%, compared to total deposits at March 31, 2023. See Note (10) “Deposits” to the Consolidated Financial Statements in Item 1 of this report for a summary of period end deposit balances.
Current wording
Total deposits at June 30, 2024 were $48.0 billion, an increase of $4.0 billion, or 9%, compared to total deposits at June 30, 2023. See Note (10) “Deposits” to the Consolidated Financial Statements in Item 1 of this report for a summary of period end deposit balances.
Previous wording
Total average deposits for the first quarter of 2024 were $44.6 billion, an increase of $2.6 billion, or 6%, from the first quarter of 2023. Total deposits increased in the first quarter as the Company increased marketing efforts to retain and attract deposits to support continued loan growth. Additionally, the diversity of our deposit base showed its resilience in a volatile market. The Company has experienced a change in the mix of deposits as non-interest bearing deposits have migrated to interest-bearing products.
Current wording
Total average deposits for the second quarter of 2024 were $46.1 billion, an increase of $3.6 billion, or 8%, from the second quarter of 2023. Total deposits increased in the second quarter as the Company increased marketing efforts to retain and attract deposits to support continued loan growth. Additionally, the diversity of our deposit base showed its resilience in a volatile market. The Company has experienced a change in the mix of deposits as non-interest bearing deposits have migrated to interest-bearing products.
Previous wording
The Board of Directors approves dividends from time to time, however, the ability to declare a dividend is limited by the Company’s financial condition, the terms of the Company’s Series D and Series E Preferred Stock, the terms of the Company’s Trust Preferred Securities offerings and under certain financial covenants in the Company’s revolving and term facilities. In January of 2024, the Company declared a quarterly cash dividend of $0.45 per common share. In January, April, July and October of 2023, the Company declared a quarterly cash dividend of $0.40 per common share.
Current wording
The Board of Directors approves dividends from time to time, however, the ability to declare a dividend is limited by the Company’s financial condition, the terms of the Company’s Series D and Series E Preferred Stock, the terms of the Company’s Trust Preferred Securities offerings and under certain financial covenants in the Company’s revolving and term facilities. In January and April of 2024, the Company declared a quarterly cash dividend of $0.45 per common share. In January, April, July and October of 2023, the Company declared a quarterly cash dividend of $0.40 per common share.
Previous wording
In addition to the liquidity management noted above, in the third quarter of 2023, the Company completed a loan sale transaction within our property and casualty insurance premium finance receivables portfolio which demonstrated that our premium finance portfolio is a strong source of additional liquidity if needed and demonstrated the flexibility to continue to manage our balance sheet effectively. Net proceeds to the Company totaled approximately $405.6 million and a gain on the sale was recorded for approximately $890,000. We maintain our liquid assets to ensure that we would have the balance sheet strength to serve our clients. As a result, the Company believes that it has sufficient funds and access to funds to effectively meet its working capital and other needs. The Company will continue to prudently evaluate liquidity sources, including the management of availability with the FHLB and FRB and utilization of the revolving credit facility with unaffiliated banks. Please refer to Management’s Discussion and Analysis of Financial Condition and Results of Operation -Interest-Earning Assets, -Deposits, -Other Funding Sources and -Shareholders’ Equity sections of this report for additional information regarding the Company’s liquidity position.
Current wording
In addition to the liquidity management noted above, in the second quarter of 2024, the Company completed a loan sale transaction within our property and casualty insurance premium finance receivables portfolio which demonstrated that our premium finance portfolio is a strong source of additional liquidity if needed and demonstrated the flexibility to continue to manage our balance sheet effectively. Net proceeds to the Company totaled approximately $627.5 million and a gain on the sale was recorded for approximately $4.6 million. We maintain our liquid assets to ensure that we would have the balance sheet strength to serve our clients. As a result, the Company believes that it has sufficient funds and access to funds to effectively meet its working capital and other needs. The Company will continue to prudently evaluate liquidity sources, including the management of availability with the FHLB and FRB and utilization of the revolving credit facility with unaffiliated banks. Please refer to Management’s Discussion and Analysis of Financial Condition and Results of Operation -Interest-Earning Assets, -Deposits, -Other Funding Sources and -Shareholders’ Equity sections of this report for additional information regarding the Company’s liquidity position.
Showing the first 40 of 42 pairs. Open the source sections for the rest.
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Current report — wording carried from elsewhere
The following table presents a summary of the Company’s net interest income and related net interest margin, including a calculation on a fully taxable-equivalent basis, for the six months ended June 30, 2024 compared to the six months ended June 30, 2023:
Current report — wording carried from elsewhere
(1)Includes interest-bearing deposits with 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.
Current report — wording carried from elsewhere
(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.
Current report — wording carried from elsewhere
(3)Interest income on tax-advantaged loans, trading securities and investment securities reflects a taxable-equivalent adjustment based on a marginal federal corporate tax rate in effect as of the applicable period. The total adjustments for the six months ended June 30, 2024 and June 30, 2023 were $5.7 million and $4.9 million, respectively.
Current report — wording carried from elsewhere
(4)Other earning assets include brokerage customer receivables and trading account securities.
Current report — wording carried from elsewhere
(5)Loans, net of unearned income, include nonaccrual loans.
Current report — wording carried from elsewhere
(6)Interest rate spread is the difference between the yield earned on earning assets and the rate paid on interest-bearing liabilities.
Current report — wording carried from elsewhere
(7)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.
Current report — wording carried from elsewhere
(8)See “Supplemental Non-GAAP Financial Measures/Ratios” for additional information on this performance ratio.
Current report — wording carried from elsewhere
(1)Wealth management revenue is comprised of the trust and asset management revenue of the CTC 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 CDEC.
Current report — wording carried from elsewhere
(“MSRs”)” to the Consolidated Financial Statements in Item 1 of this report for a summary of the changes in the carrying value of MSRs.
Current report — wording carried from elsewhere
The following table sets forth, by category, the composition of average earning asset balances and the relative percentage of total average earning assets for the periods presented:
Current report — wording carried from elsewhere
(2)Liquidity management assets include investment securities, other securities, interest earning deposits with banks, federal funds sold and securities purchased under resale agreements.
Current report — wording carried from elsewhere
(3)Other earning assets include brokerage customer receivables and trading account securities.
Rearranged previous paragraphs (1)
Previous report — wording carried elsewhere
Company recorded net excess tax benefits of $4.4 million in the first quarter of 2024, compared to net excess tax benefits of $2.8 million in the first quarter of 2023 related to share-based compensation.