Wintrust Financial Corporation Reports Third Quarter 2021 Net Income of $109.1 million and Year-To-Date Net Income of $367.4 million

Rosemont, Illinois, UNITED STATES


ROSEMONT, Ill., Oct. 19, 2021 (GLOBE NEWSWIRE) -- Wintrust Financial Corporation (“Wintrust”, “the Company”, "we" or "our") (Nasdaq: WTFC) announced net income of $109.1 million or $1.77 per diluted common share for the third quarter of 2021, an increase in diluted earnings per common share of 4% compared to the second quarter of 2021 and an increase of 6% compared to the third quarter of 2020. The Company recorded net income of $367.4 million or $6.00 per diluted common share for the first nine months of 2021 compared to net income of $191.8 million or $3.06 per diluted common share for the same period of 2020.

Highlights of the Third Quarter of 2021:
Comparative information to the second quarter of 2021

  • Total loans, excluding Paycheck Protection Program ("PPP") loans, increased by $1.2 billion, or 15% on an annualized basis.
    • Core loans increased by $701 million and niche loans increased by $449 million. See Table 1 for more information.
  • PPP loans declined by $797 million in the third quarter of 2021 primarily as a result of processing forgiveness payments.
  • Total assets increased by $1.1 billion.
  • Total deposits increased by $1.1 billion, including a $459 million increase in non-interest bearing deposits.
  • Net interest income increased by $7.9 million as compared to the second quarter of 2021 as follows:
    • Increased $16.3 million primarily due to earning asset growth and a nine basis point decline in deposit costs.
    • Increased $3.0 million due to one additional day in the quarter.
    • Decreased by $11.4 million due to $3.6 million of less PPP interest income and $7.8 million of less PPP fee income.
  • Net interest margin decreased by four basis points primarily due to increased liquidity.
  • Recorded no material net charge-offs in the third quarter of 2021 as compared to very minimal net charge-offs of $1.9 million in the second quarter of 2021.
  • Recorded a negative provision for credit losses of $7.9 million in the third quarter of 2021 as compared to a negative provision for credit losses of $15.3 million in the second quarter of 2021.
  • The allowance for credit losses on our core loan portfolio is approximately 1.38% of the outstanding balance as of September 30, 2021, down from 1.49% as of June 30, 2021. See Table 12 for more information.
  • Non-performing loans remained low at 0.27% of total loans, as of September 30, 2021, unchanged from the second quarter of 2021.
  • Mortgage banking revenue increased to $55.8 million for the third quarter of 2021 as compared to $50.6 million in the second quarter of 2021.
  • Tangible book value per common share (non-GAAP) increased to $58.32 as compared to $56.92 as of June 30, 2021. See Table 18 for reconciliation of non-GAAP measures.
  • Repurchased 134,062 shares of our common stock at a cost of $9.5 million, or an average price of $71.13 per share.

Edward J. Wehmer, Founder and Chief Executive Officer, commented, "The third quarter of 2021 was characterized by significant organic loan and deposit growth, increased net interest income, strong mortgage banking revenue, record wealth management revenue, tangible book value growth and very good credit quality metrics. Wintrust reported net income of $109.1 million for the third quarter of 2021, up from $105.1 million in the second quarter of 2021. On a year-to-date basis, net income totaled $367.4 million for the first nine months of 2021, up from $191.8 million in the first nine months of 2020, a 92% increase. The Company continues to grow as total assets of $47.8 billion as of September 30, 2021 increased by $1.1 billion as compared to June 30, 2021 and increased by $4.1 billion as compared to September 30, 2020."

Mr. Wehmer continued, "The Company experienced significant loan growth, excluding PPP loans, of $1.2 billion or 15%, on an annualized basis in the third quarter of 2021, including growth in its commercial, commercial real estate, residential real estate loans for investment, commercial insurance premium finance receivable and life insurance premium receivable portfolios. Growth was particularly strong in the commercial loan portfolio due to new customer relationships and a slight increase in line of credit utilization. We are still experiencing historically low commercial line of credit utilization and feel confident that we can continue to grow loans given our robust loan pipelines and diversified loan portfolio. Total deposits increased by $1.1 billion as compared to the second quarter of 2021 primarily in products with zero or near zero interest rates contributing to a decrease in our cost of funds. We continue to emphasize growing our franchise, including gathering low cost deposits, which we believe will drive value in the long term. Our loans to deposits ratio ended the quarter at 83.3% and we believe that we have sufficient liquidity to meet customer loan demand."

Mr. Wehmer commented, "Net interest income increased by $7.9 million in the third quarter of 2021 primarily due to earning asset growth and a decline in deposit costs. Even amid a challenging interest rate environment, the Company has managed to increase net interest income for four quarters in a row. Especially noteworthy this quarter was that net interest income increased considerably despite recording $11.4 million of less interest income on PPP loans. This demonstrates that our growth strategy has been able to replace PPP loans and sustain loan portfolio growth benefiting future quarters. Net interest margin decreased by four basis points in the third quarter of 2021 as compared to the second quarter of 2021 primarily due to increased liquidity. Excluding the unfavorable net interest margin impact from increased liquidity, the margin exhibited improvement as the rate on deposits declined nine basis points as compared to a two basis point decline in loan yields. We continue to monitor our excess liquidity position and the available market returns on investments. We believe that deploying liquidity could potentially increase our net interest margin and net interest income. Additionally, we remain in an asset sensitive interest rate position which should allow our net interest income and net interest margin to benefit from future increases in interest rates."

Mr. Wehmer noted, “We recorded mortgage banking revenue of $55.8 million in the third quarter of 2021 as compared to $50.6 million in the second quarter of 2021. Loan volumes originated for sale in the third quarter of 2021 were $1.6 billion, down from $1.7 billion in the second quarter of 2021. However, production margin improved in the third quarter of 2021 as compared to the second quarter of 2021. Additionally, the Company recorded an $888,000 decrease in the value of mortgage servicing rights related to changes in fair value model assumptions as compared to a $5.5 million decrease recognized in the second quarter of 2021. Based on current market conditions, we expect that mortgage originations will decline by 20-30% in the fourth quarter of 2021 as compared to the third quarter of 2021 due to the seasonal decline in home purchase activity and declining refinance volumes.

Commenting on credit quality, Mr. Wehmer stated, "The Company recorded no material net charge-offs in third quarter of 2021. This follows the second quarter of 2021 which also exhibited very low levels of net charge-offs totaling $1.9 million. The recent results demonstrate Wintrust’s conservative credit underwriting approach and our continued diligence in timely addressing problem credits. The Company recorded a negative provision for credit losses of $7.9 million in the third quarter of 2021 primarily related to improving credit quality in the loan portfolio. The level of non-performing loans remained historically low and unchanged at 0.27% of total loans as of both September 30, 2021 and June 30, 2021. The allowance for credit losses on our core loan portfolio as of September 30, 2021 is approximately 1.38% of the outstanding balance. We believe that the Company’s reserves remain appropriate and we remain diligent in our review of credit."

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

The graphs below illustrate certain financial highlights of the third quarter of 2021 as well as historical financial performance. See "Supplemental Non-GAAP Financial Measures/Ratios" at Table 18 for additional information with respect to non-GAAP financial measures/ratios, including the reconciliations to the corresponding GAAP financial measures/ratios.

Graphs available at the following link: http://ml.globenewswire.com/Resource/Download/fef11bc9-4918-4c82-bdbe-c78dadfc914a

SUMMARY OF RESULTS:

BALANCE SHEET

Total asset growth of $1.1 billion in the third quarter of 2021 was primarily comprised of a $525 million increase in interest bearing deposits with banks and a $1.2 billion increase in total loans, excluding PPP loans. These increases were partially offset by a $797 million decrease in PPP loans and a $59.7 million decrease in mortgage loans held-for-sale. As of September 30, 2021, approximately 95% of PPP loan balances originated in 2020 were forgiven with nearly all of the remaining loan balance in the forgiveness review or submission process. Whereas, as of September 30, 2021, approximately 32% of PPP loan balances originated in 2021 were forgiven, 16% are in the forgiveness review or submission process and 52% have yet to apply for forgiveness. Total loans, excluding PPP loans, increased by $1.2 billion primarily due to growth in the commercial, commercial real estate, residential real estate loans for investment, commercial insurance premium finance receivable and life insurance premium receivable portfolios. The Company believes that the $5.2 billion of interest-bearing deposits with banks held as of September 30, 2021 provides more than sufficient liquidity to operate its business plan with the ability to deploy excess liquidity into higher yielding investments when market returns improve.

Total liabilities increased $1.0 billion in the third quarter of 2021 resulting primarily from a $1.1 billion increase in total deposits. The increase in deposits was primarily due to a $914 million increase in money market deposits and a $459 million increase in non-interest bearing deposits. The Company's loans to deposits ratio ended the quarter at 83.3%. Management believes in substantially funding the Company's balance sheet with core deposits and utilizes brokered or wholesale funding sources as appropriate to manage its liquidity position as well as for interest rate risk management purposes.

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

NET INTEREST INCOME

For the third quarter of 2021, net interest income totaled $287.5 million, an increase of $7.9 million as compared to the second quarter of 2021 and an increase of $31.6 million as compared to the third quarter of 2020. The $7.9 million increase in net interest income in the third quarter of 2021 compared to the second quarter of 2021 was primarily due to earning asset growth and a decline in deposit costs. Additionally, the net interest income growth occurred despite a decline of $11.4 million due to $3.6 million of less PPP interest income and $7.8 million of less PPP fee income. As of September 30, 2021, the Company had approximately $24.8 million of net PPP loan fees that have yet to be recognized in income.

Net interest margin was 2.58% (2.59% on a fully taxable-equivalent basis, non-GAAP) during the third quarter of 2021 compared to 2.62% (2.63% on a fully taxable-equivalent basis, non-GAAP) during the second quarter of 2021 and up from 2.56% (2.57% on a fully taxable-equivalent basis, non-GAAP) during the third quarter of 2020. The net interest margin decrease as compared to the prior quarter was primarily due to the 10 basis point decrease in yield on earning assets and two basis point decrease in the net free funds contribution partially offset by an eight basis point decrease in the rate paid on interest-bearing liabilities. The decrease in the rate paid on interest-bearing liabilities in the third quarter of 2021 as compared to the prior quarter is primarily due to a nine basis point decrease in the rate paid on interest-bearing deposits primarily due to lower repricing of time deposits. The 10 basis point decrease in the yield on earning assets in the third quarter of 2021 as compared to the second quarter of 2021 was primarily due to a shift in earning asset mix with increasing levels of low yielding liquidity management assets.

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

ASSET QUALITY

The allowance for credit losses totaled $296.1 million as of September 30, 2021, a decrease of $8.0 million as compared to $304.1 million as of June 30, 2021. The allowance for credit losses decreased primarily due to improving credit quality in the loan portfolio which was partially offset by uncertainty in the positive directionality of macroeconomic factors. A negative provision for credit losses totaling $7.9 million was recorded for the third quarter of 2021 compared to a negative provision of $15.3 million for the second quarter of 2021 and $25.0 million of expense for the third quarter of 2020. For more information regarding the provision for credit losses, see Table 11 in this report.

Management believes the allowance for credit losses is appropriate to account for expected credit losses. The Current Expected Credit Losses ("CECL") accounting standard requires the Company to estimate expected credit losses over the life of the Company’s financial assets as of the reporting date. There can be no assurances, however, that future losses will not significantly exceed the amounts provided for, thereby affecting future results of operations. A summary of the allowance for credit losses calculated for the loan components in each portfolio as of September 30, 2021, June 30, 2021, and March 31, 2021 is shown on Table 12 of this report.

Net charge-offs totaled $2,000 in the third quarter of 2021, as compared to $1.9 million in the second quarter of 2021 and $9.3 million in the third quarter of 2020. Net charge-offs as a percentage of average total loans were reported as zero basis points in the third quarter of 2021 on an annualized basis compared to two basis points on an annualized basis in the second quarter of 2021 and 12 basis points on an annualized basis in the third quarter of 2020. For more information regarding net charge-offs, see Table 10 in this report.

As of September 30, 2021, $32.9 million of all loans, or 0.1%, were 60 to 89 days past due and $128.8 million, or 0.4%, were 30 to 59 days (or one payment) past due. As of June 30, 2021, $19.3 million of all loans, or 0.1%, were 60 to 89 days past due and $73.9 million, or 0.2%, were 30 to 59 days (or one payment) past due. Many of the commercial and commercial real-estate loans shown as 60 to 89 days and 30 to 59 days past due are included on the Company’s internal problem loan reporting system. Loans on this system are closely monitored by management on a monthly basis.

The Company’s home equity and residential real estate loan portfolios continue to exhibit low delinquency rates as of September 30, 2021. Home equity loans at September 30, 2021 that are current with regard to the contractual terms of the loan agreement represent 98.6% of the total home equity portfolio. Residential real estate loans at September 30, 2021 that are current with regards to the contractual terms of the loan agreements comprised 98.4% of total residential real estate loans outstanding. For more information regarding past due loans, see Table 13 in this report.

The outstanding balance of COVID-19 related modified loans totaled approximately $72 million or 0.2% of total loans, excluding PPP loans as of September 30, 2021 as compared to $146 million or 0.5% as of June 30, 2021. The most significant proportion of outstanding modifications changed terms to interest-only payments.

The ratio of non-performing assets to total assets was 0.22% as of September 30, 2021, compared to 0.22% at June 30, 2021, and 0.42% at September 30, 2020. Non-performing assets totaled $103.9 million at September 30, 2021, compared to $103.3 million at June 30, 2021 and $182.3 million at September 30, 2020. Non-performing loans totaled $90.0 million, or 0.27% of total loans, at September 30, 2021 compared to $87.7 million, or 0.27% of total loans, at June 30, 2021 and $173.1 million, or 0.54% of total loans, at September 30, 2020. Other real estate owned ("OREO") totaled $13.8 million at September 30, 2021, a decrease of $1.7 million compared to $15.6 million at June 30, 2021 and an increase of $4.6 million compared to $9.2 million at September 30, 2020. Management is pursuing the resolution of all non-performing assets. At this time, management believes OREO is appropriately valued at the lower of carrying value or fair value less estimated costs to sell. For more information regarding non-performing assets, see Table 14 in this report.

NON-INTEREST INCOME

Wealth management revenue increased by $841,000 during the third quarter of 2021 as compared to the second quarter of 2021 primarily due to increased trust and asset management fees. Wealth management revenue is comprised of the trust and asset management revenue of The Chicago Trust Company and Great Lakes Advisors, the brokerage commissions, managed money fees and insurance product commissions at Wintrust Investments and fees from tax-deferred like-kind exchange services provided by the Chicago Deferred Exchange Company.

Mortgage banking revenue increased by $5.2 million in the third quarter of 2021 as compared to the second quarter of 2021, primarily due to an $888,000 unfavorable mortgage servicing rights portfolio fair value adjustment as compared to a $5.5 million decrease recognized in the prior quarter related to changes in fair value model assumptions and a $1.7 million increase in production revenue. Loans originated for sale were $1.6 billion in the third quarter of 2021, a decrease of $165 million as compared to the second quarter of 2021. The percentage of origination volume from refinancing activities was 44% in the third quarter of 2021 as compared to 47% in the second quarter of 2021. Mortgage banking revenue includes revenue from activities related to originating, selling and servicing residential real estate loans for the secondary market.

During the third quarter of 2021, the fair value of the mortgage servicing rights portfolio increased primarily due to the capitalization of $15.5 million of servicing rights partially offset by a reduction in value of $8.6 million due to payoffs and paydowns of the existing portfolio and a fair value adjustment decrease of $888,000.

The Company recognized net losses on investment securities of $2.4 million in the third quarter of 2021 as compared to net gains of $1.3 million recognized in the second quarter of 2021.

Other non-interest income increased by $3.0 million in the third quarter of 2021 as compared to the second quarter of 2021 primarily due to a $2.0 million increase in interest rate swap fees and a $2.2 million increase in income on partnership investments. Other non-interest income during the second quarter of 2021 included a $4.0 million net gain recorded on the sale of three branches in southwestern Wisconsin.

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

NON-INTEREST EXPENSE

Salaries and employee benefits expense decreased by $1.9 million in the third quarter of 2021 as compared to the second quarter of 2021. The $1.9 million decline is primarily related to $6.3 million of lower compensation expense associated with the mortgage banking operation offset somewhat by higher incentive compensation expense for annual bonus and long-term incentive compensation plans during the third quarter relative to the second quarter.

Advertising and marketing expense totaled $13.4 million in the third quarter of 2021, an increase of $2.1 million as compared to the second quarter of 2021. The increase in the third quarter relates primarily to increased sponsorship activity for the summer months. Marketing costs are incurred to promote the Company's brand, commercial banking capabilities and various products, to attract loans and deposits and to announce new branch openings as well as the expansion of the Company's non-bank businesses. The level of marketing expenditures depends on the timing of sponsorship programs utilized which are determined based on the market area, targeted audience, competition and various other factors.

The Company recorded a net OREO gain of $1.5 million in the third quarter of 2021 as compared to a net expense of $769,000 in the second quarter of 2021. The net gain is primarily attributable to the sale of OREO properties during the third quarter of 2021.

Miscellaneous expense in the third quarter of 2021 increased by $2.2 million as compared to the second quarter of 2021. The increase was primarily impacted by approximately $1.7 million of more travel and entertainment expenses due to increased expenses associated with in-person client relationship meetings and conferences as well as some additional expense associated with an all-employee event to celebrate Wintrust’s 30th anniversary and to thank our employees for performing so well during the pandemic. Additionally, the third quarter of 2021 included a $271,000 reversal of contingent consideration expense related to the previous acquisition of mortgage operations as compared to a $1.4 million reversal of contingent consideration expense in the second quarter of 2021. The Company expects no additional material adjustments to the contingent consideration liability in future periods. Miscellaneous expense also includes ATM expenses, correspondent bank charges, directors fees, telephone, travel and entertainment, corporate insurance, dues and subscriptions, problem loan expenses and lending origination costs that are not deferred.

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

INCOME TAXES

The Company recorded income tax expense of $40.6 million in the third quarter of 2021 compared to $39.0 million in the second quarter of 2021 and $30.0 million in the third quarter of 2020. The effective tax rates were 27.12% in the third quarter of 2021 compared to 27.08% in the second quarter of 2021 and 21.83% in the third quarter of 2020. The lower effective tax rate in the third quarter of 2020 was a result of a $9.0 million state income tax benefit ($7.1 million after federal taxes) related to the settlement of an uncertain tax position in the quarter.

BUSINESS UNIT SUMMARY

Community Banking

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

Mortgage banking revenue was $55.8 million for the third quarter of 2021, an increase of $5.2 million as compared to the second quarter of 2021. Service charges on deposit accounts totaled $14.1 million in the third quarter of 2021, an increase of $900,000 as compared to the second quarter of 2021 primarily due to higher account analysis fees. The Company’s gross commercial and commercial real estate loan pipelines remained strong as of September 30, 2021. Before the impact of scheduled payments and prepayments, gross commercial and commercial real estate loan pipelines were estimated to be approximately $1.4 billion to $1.5 billion at September 30, 2021. When adjusted for the probability of closing, the pipelines were estimated to be approximately $900 million to $1.0 billion at September 30, 2021.

Specialty Finance

Through its specialty finance unit, the Company offers financing of insurance premiums for businesses and individuals, equipment financing through structured loans and lease products to customers in a variety of industries, accounts receivable financing and value-added, out-sourced administrative services and other services. Originations within the insurance premium financing receivables portfolio were $3.1 billion during the third quarter of 2021 and average balances increased by $735 million as compared to the second quarter of 2021. The increase in average balances in the insurance premium finance receivables portfolios primarily generated a $7.6 million increase in interest income. The Company’s leasing portfolio remained effectively unchanged from the second quarter of 2021 to the third quarter of 2021, with its portfolio of assets, including capital leases, loans and equipment on operating leases, at $2.3 billion at the end of the third quarter of 2021. Revenues from the Company’s out-sourced administrative services business were $1.4 million in the third quarter of 2021, up $131,000 from the second quarter of 2021.

Wealth Management

Through four separate subsidiaries within its wealth management unit, the Company offers a full range of wealth management services, including trust and investment services, tax-deferred like-kind exchange services, asset management, securities brokerage services and 401(k) and retirement plan services. Wealth management revenue totaled $31.5 million in the third quarter of 2021, an increase of $841,000 compared to the second quarter of 2021. Increases in asset management fees were primarily due to favorable equity market performance during the third quarter of 2021. At September 30, 2021, the Company’s wealth management subsidiaries had approximately $34.5 billion of assets under administration, which included $5.1 billion of assets owned by the Company and its subsidiary banks, representing a $326.3 million increase from the $34.2 billion of assets under administration at June 30, 2021.

WINTRUST FINANCIAL CORPORATION 
Key Operating Measures

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

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

2nd Quarter
2021
 % or
basis point 
(bp) change
from

3rd Quarter

2020
  Three Months Ended 
(Dollars in thousands, except per share data) Sep 30, 2021 Jun 30, 2021 Sep 30, 2020 
Net income $109,137  $105,109  $107,315 4   2  
Pre-tax income, excluding provision for credit losses (non-GAAP) (2) 141,826  128,851  162,310 10    (13)  
Net income per common share – diluted 1.77  1.70  1.67 4    6   
Net revenue (3) 423,970  408,963  426,529 4    (1)  
Net interest income 287,496  279,590  255,936 3    12   
Net interest margin 2.58% 2.62% 2.56%(4)bps   2 bps  
Net interest margin – fully taxable-equivalent (non-GAAP) (2) 2.59  2.63  2.57 (4)   2   
Net overhead ratio (4) 1.22  1.32  0.87 (10)   35   
Return on average assets 0.92  0.92  0.99     (7)  
Return on average common equity 10.31  10.24  10.66 7    (35)  
Return on average tangible common equity (non-GAAP) (2) 12.62  12.62  13.43     (81)  
At end of period           
Total assets $47,832,271  $46,738,450  $43,731,718 9   9  
Total loans (5) 33,264,043
  32,911,187  32,135,555 4    4   
Total deposits 39,952,558
  38,804,616  35,844,422 12    11   
Total shareholders’ equity 4,410,317
  4,339,011  4,074,089 7    8   

(1)   Period-end balance sheet percentage changes are annualized.
(2)   See "Supplemental Non-GAAP Financial Measures/Ratios" at Table 18 for additional information on this performance measure/ratio.
(3)   Net revenue is net interest income plus non-interest income.
(4)   The net overhead ratio is calculated by netting total non-interest expense and total non-interest income, annualizing this amount, and dividing by that period's average total assets. A lower ratio indicates a higher degree of efficiency.
(5)   Excludes mortgage loans held-for-sale.

Certain returns, yields, performance ratios, or quarterly growth rates are “annualized” in this presentation to represent an annual time period. This is done for analytical purposes to better discern, for decision-making purposes, underlying performance trends when compared to full-year or year-over-year amounts. For example, a 5% growth rate for a quarter would represent an annualized 20% growth rate. Additional supplemental financial information showing quarterly trends can be found on the Company’s website at www.wintrust.com by choosing “Financial Reports” under the “Investor Relations” heading, and then choosing “Financial Highlights.”

WINTRUST FINANCIAL CORPORATION
Selected Financial Highlights

  Three Months EndedNine Months Ended
(Dollars in thousands, except per share data) Sep 30,
2021
 Jun 30,
2021
 Mar 31,
2021
 Dec 31,
2020
 Sep 30,
2020
Sep 30,
2021
 Sep 30,
2020
Selected Financial Condition Data (at end of period):   
Total assets $47,832,271  $46,738,450  $45,682,202  $45,080,768  $43,731,718    
Total loans (1)  33,264,043   32,911,187   33,171,233   32,079,073   32,135,555    
Total deposits  39,952,558   38,804,616   37,872,652   37,092,651   35,844,422    
Junior subordinated debentures  253,566   253,566   253,566   253,566   253,566    
Total shareholders’ equity  4,410,317   4,339,011   4,252,511   4,115,995   4,074,089    
Selected Statements of Income Data:   
Net interest income $287,496  $279,590  $261,895  $259,397  $255,936 $828,981  $780,510 
Net revenue (2) 423,970  408,963  448,401  417,758  426,529 1,281,334  1,226,338 
Net income 109,137  105,109  153,148  101,204  107,315 367,394  191,786 
Pre-tax income, excluding provision for credit losses (non-GAAP) (3) 141,826  128,851  161,512  135,891  162,310 432,189  468,110 
Net income per common share – Basic 1.79  1.72  2.57  1.64  1.68 6.08  3.08 
Net income per common share – Diluted 1.77  1.70  2.54  1.63  1.67 6.00  3.06 
Selected Financial Ratios and Other Data:   
Performance Ratios:   
Net interest margin 2.58% 2.62% 2.53% 2.53% 2.56%2.58% 2.79%
Net interest margin – fully taxable-equivalent (non-GAAP) (3) 2.59  2.63  2.54  2.54  2.57 2.59  2.80 
Non-interest income to average assets 1.15  1.13  1.68  1.44  1.58 1.31  1.47 
Non-interest expense to average assets 2.37  2.45  2.59  2.56  2.45 2.47  2.50 
Net overhead ratio (4) 1.22  1.32  0.90  1.12  0.87 1.15  1.03 
Return on average assets 0.92  0.92  1.38  0.92  0.99 1.07  0.63 
Return on average common equity 10.31  10.24  15.80  10.30  10.66 12.05  6.56 
Return on average tangible common equity (non-GAAP) (3) 12.62  12.62  19.49  12.95  13.43 14.82  8.38 
Average total assets $47,192,510  $45,946,751  $44,988,733  $43,810,005  $42,962,844 $46,050,737  $40,552,517 
Average total shareholders’ equity  4,343,915   4,256,778   4,164,890   4,050,286   4,034,902 4,255,851  3,885,187 
Average loans to average deposits ratio 83.8% 86.7% 87.1% 87.9% 89.6%85.8% 89.1%
Period-end loans to deposits ratio 83.3  84.8  87.6  86.5  89.7    
Common Share Data at end of period:   
Market price per common share $80.37  $75.63  $75.80  $61.09  $40.05    
Book value per common share 70.19  68.81  67.34  65.24  63.57    
Tangible book value per common share (non-GAAP) (3) 58.32  56.92  55.42  53.23  51.70    
Common shares outstanding  56,956,026   57,066,677   57,023,273   56,769,625   57,601,991    
Other Data at end of period:   
Tier 1 leverage ratio (5) 8.1% 8.2% 8.2% 8.1% 8.2%   
Risk-based capital ratios:             
Tier 1 capital ratio (5) 9.9  10.1  10.2  10.0  10.2    
Common equity tier 1 capital ratio (5) 8.8  9.0  9.0  8.8  9.0    
Total capital ratio (5) 12.1  12.4  12.6  12.6  12.9    
Allowance for credit losses (6) $296,138  $304,121  $321,308  $379,969  $388,971    
Allowance for loan and unfunded lending-related commitment losses to total loans 0.89% 0.92% 0.97% 1.18% 1.21%   
Number of:             
Bank subsidiaries 15  15  15  15  15    
Banking offices 172  172  182  181  182    

(1)   Excludes mortgage loans held-for-sale.
(2)   Net revenue is net interest income and non-interest income.
(3)   See “Supplemental Non-GAAP Financial Measures/Ratios” at Table 18 for additional information on this performance measure/ratio.
(4)   The net overhead ratio is calculated by netting total non-interest expense and total non-interest income, annualizing this amount, and dividing by that period’s total average assets. A lower ratio indicates a higher degree of efficiency.
(5)   Capital ratios for current quarter-end are estimated.
(6)   The allowance for credit losses includes the allowance for loan losses, the allowance for unfunded lending-related commitments and the allowance for held-to-maturity securities losses.


WINTRUST FINANCIAL CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CONDITION

  (Unaudited) (Unaudited) (Unaudited)   (Unaudited)
  Sep 30, Jun 30, Mar 31, Dec 31, Sep 30,
(In thousands) 2021 2021 2021 2020 2020
Assets          
Cash and due from banks $462,244   $434,957   $426,325   $322,415   $308,639  
Federal funds sold and securities purchased under resale agreements 55   52   52   59   56  
Interest-bearing deposits with banks 5,232,315   4,707,415   3,348,794   4,802,527   3,825,823  
Available-for-sale securities, at fair value 2,373,478   2,188,608   2,430,749   3,055,839   2,946,459  
Held-to-maturity securities, at amortized cost 2,736,722   2,498,232   2,166,419   579,138   560,267  
Trading account securities 1,103   2,667   951   671   1,720  
Equity securities with readily determinable fair value 88,193   86,316   90,338   90,862   54,398  
Federal Home Loan Bank and Federal Reserve Bank stock 135,408   136,625   135,881   135,588   135,568  
Brokerage customer receivables 26,378   23,093   19,056   17,436   16,818  
Mortgage loans held-for-sale 925,312   984,994   1,260,193   1,272,090   959,671  
Loans, net of unearned income 33,264,043   32,911,187   33,171,233   32,079,073   32,135,555  
Allowance for loan losses (248,612)  (261,089)  (277,709)  (319,374)  (325,959) 
Net loans 33,015,431   32,650,098   32,893,524   31,759,699   31,809,596  
Premises, software and equipment, net 748,872   752,375   760,522   768,808   774,288  
Lease investments, net 243,933   219,023   238,984   242,434   230,373  
Accrued interest receivable and other assets 1,166,917   1,185,811   1,230,362   1,351,455   1,424,728  
Trade date securities receivable    189,851           
Goodwill 645,792   646,336   646,017   645,707   644,644  
Other intangible assets 30,118   31,997   34,035   36,040   38,670  
Total assets $47,832,271   $46,738,450   $45,682,202   $45,080,768   $43,731,718  
Liabilities and Shareholders’ Equity          
Deposits:          
Non-interest-bearing $13,255,417   $12,796,110   $12,297,337   $11,748,455   $10,409,747  
Interest-bearing 26,697,141   26,008,506   25,575,315   25,344,196   25,434,675  
Total deposits 39,952,558   38,804,616   37,872,652   37,092,651   35,844,422  
Federal Home Loan Bank advances 1,241,071   1,241,071   1,228,436   1,228,429   1,228,422  
Other borrowings 504,527   518,493   516,877   518,928   507,395  
Subordinated notes 436,811   436,719   436,595   436,506   436,385  
Junior subordinated debentures 253,566   253,566   253,566   253,566   253,566  
Trade date securities payable 1,348      995   200,907     
Accrued interest payable and other liabilities 1,032,073   1,144,974   1,120,570   1,233,786   1,387,439  
Total liabilities 43,421,954   42,399,439   41,429,691   40,964,773   39,657,629  
Shareholders’ Equity:          
Preferred stock 412,500   412,500   412,500   412,500   412,500  
Common stock 58,794   58,770   58,727   58,473   58,323  
Surplus 1,674,062   1,669,002   1,663,008   1,649,990   1,647,049  
Treasury stock (109,903)  (100,363)  (100,363)  (100,363)  (44,891) 
Retained earnings 2,373,447   2,288,969   2,208,535   2,080,013   2,001,949  
Accumulated other comprehensive income (loss) 1,417   10,133   10,104   15,382   (841) 
Total shareholders’ equity 4,410,317   4,339,011   4,252,511   4,115,995   4,074,089  
Total liabilities and shareholders’ equity $47,832,271   $46,738,450   $45,682,202   $45,080,768   $43,731,718  

 

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

 Three Months EndedNine Months Ended
(In thousands, except per share data)Sep 30,
2021
 Jun 30,
2021
 Mar 31,
2021
 Dec 31,
2020
 Sep 30,
2020
Sep 30,
2021
 Sep 30,
2020
Interest income            
Interest and fees on loans$285,587   $284,701   $274,100   $280,185   $280,479  $844,388   $877,064  
Mortgage loans held-for-sale7,716   8,183   9,036   6,357   5,791  24,935   13,720  
Interest-bearing deposits with banks2,000   1,153   1,199   1,294   1,181  4,352   7,259  
Federal funds sold and securities purchased under resale agreements                 102  
Investment securities25,189   23,623   19,264   18,243   21,819  68,076   81,391  
Trading account securities3   1   2   11   6  6   26  
Federal Home Loan Bank and Federal Reserve Bank stock1,777   1,769   1,745   1,775   1,774  5,291   5,116  
Brokerage customer receivables185   149   123   116   106  457   361  
Total interest income322,457   319,579   305,469   307,981   311,156  947,505   985,039  
Interest expense            
Interest on deposits19,305   24,298   27,944   32,602   39,084  71,547   156,576  
Interest on Federal Home Loan Bank advances4,931   4,887   4,840   4,952   4,947  14,658   13,241  
Interest on other borrowings2,501   2,568   2,609   2,779   3,012  7,678   9,994  
Interest on subordinated notes5,480   5,512   5,477   5,509   5,474  16,469   16,452  
Interest on junior subordinated debentures2,744   2,724   2,704   2,742   2,703  8,172   8,266  
Total interest expense34,961   39,989   43,574   48,584   55,220  118,524   204,529  
Net interest income287,496   279,590   261,895   259,397   255,936  828,981   780,510  
Provision for credit losses(7,916)  (15,299)  (45,347)  1,180   25,026  (68,562)  213,040  
Net interest income after provision for credit losses295,412   294,889   307,242   258,217   230,910  897,543   567,470  
Non-interest income            
Wealth management31,531   30,690   29,309   26,802   24,957  91,530   73,534  
Mortgage banking55,794   50,584   113,494   86,819   108,544  219,872   259,194  
Service charges on deposit accounts14,149   13,249   12,036   11,841   11,497  39,434   33,182  
(Losses) gains on investment securities, net(2,431)  1,285   1,154   1,214   411  8   (3,140) 
Fees from covered call options1,157   1,388           2,545   2,292  
Trading gains (losses), net58   (438)  419   (102)  183  39   (902) 
Operating lease income, net12,807   12,240   14,440   12,118   11,717  39,487   35,486  
Other23,409   20,375   15,654   19,669   13,284  59,438   46,182  
Total non-interest income136,474   129,373   186,506   158,361   170,593  452,353   445,828  
Non-interest expense            
Salaries and employee benefits170,912   172,817   180,809   171,116   164,042  524,538   454,960  
Software and equipment22,029   20,866   20,912   20,565   17,251  63,807   47,931  
Operating lease equipment depreciation10,013   9,949   10,771   9,938   9,425  30,733   27,977  
Occupancy, net18,158   17,687   19,996   19,687   15,830  55,841   50,270  
Data processing7,104   6,920   6,048   5,728   5,689  20,072   24,468  
Advertising and marketing13,443   11,305   8,546   9,850   7,880  33,294   26,446  
Professional fees7,052   7,304   7,587   6,530   6,488  21,943   20,896  
Amortization of other intangible assets1,877   2,039   2,007   2,634   2,701  5,923   8,384  
FDIC insurance6,750   6,405   6,558   7,016   6,772  19,713   17,988  
OREO expense, net(1,531)  769   (251)  (114)  (168) (1,013)  (807) 
Other26,337   24,051   23,906   28,917   28,309  74,294   79,715  
Total non-interest expense282,144   280,112   286,889   281,867   264,219  849,145   758,228  
Income before taxes149,742   144,150   206,859   134,711   137,284  500,751   255,070  
Income tax expense40,605   39,041   53,711   33,507   29,969  133,357   63,284  
Net income$109,137   $105,109   $153,148   $101,204   $107,315  $367,394   $191,786  
Preferred stock dividends6,991   6,991   6,991   6,991   10,286  20,973   14,386  
Net income applicable to common shares$102,146   $98,118   $146,157   $94,213   $97,029  $346,421   $177,400  
Net income per common share - Basic$1.79   $1.72   $2.57   $1.64   $1.68  $6.08   $3.08  
Net income per common share - Diluted$1.77   $1.70   $2.54   $1.63   $1.67  $6.00   $3.06  
Cash dividends declared per common share$0.31   $0.31   $0.31   $0.28   $0.28  $0.93   $0.84  
Weighted average common shares outstanding 57,000    57,049    56,904    57,309    57,597   56,985    57,595  
Dilutive potential common shares753   726   681   588   449  728   469  
Average common shares and dilutive common shares57,753   57,775   57,585   57,897   58,046  57,713   58,064  

 

TABLE 1: LOAN PORTFOLIO MIX AND GROWTH RATES

          % Growth From (2)
(Dollars in thousands)Sep 30,
2021
 Jun 30,
2021
 Mar 31,
2021
 Dec 31,
2020
 Sep 30,
2020
Dec 31,
2020 (1)
 Sep 30,
2020
Balance:            
Mortgage loans held-for-sale, excluding early buy-out exercised loans guaranteed by U.S. Government Agencies$570,663  $633,006  $890,749  $927,307  $862,924 (51)% (34)%
Mortgage loans held-for-sale, early buy-out exercised loans guaranteed by U.S. Government Agencies354,649  351,988  369,444  344,783  96,747 4   267  
Total mortgage loans held-for-sale$925,312  $984,994  $1,260,193  $1,272,090  $959,671 (36)% (4)%
             
Core loans:            
Commercial            
Commercial and industrial$4,953,769  $4,650,607  $4,630,795  $4,675,594  $4,555,920 8 % 9 %
Asset-based lending1,066,376  892,109  720,772  721,666  707,365 64   51  
Municipal524,192  511,094  493,417  474,103  482,567 14   9  
Leases1,365,281  1,357,036  1,290,778  1,288,374  1,215,239 8   12  
Commercial real estate            
Residential construction49,754  55,735  72,058  89,389  101,187 (59)  (51) 
Commercial construction1,038,034  1,090,447  1,040,631  1,041,729  1,005,708    3  
Land255,927  239,067  240,635  240,684  226,254 8   13  
Office1,169,466  1,098,386  1,131,472  1,136,844  1,163,790 4     
Industrial1,324,612  1,263,614  1,152,522  1,129,433  1,117,702 23   19  
Retail1,237,261  1,217,540  1,198,025  1,224,403  1,175,819 1   5  
Multi-family1,888,817  1,805,118  1,739,521  1,649,801  1,599,651 19   18  
Mixed use and other1,921,843  1,908,462  1,969,915  1,981,849  2,033,031 (4)  (5) 
Home equity347,662  369,806  390,253  425,263  446,274 (24)  (22) 
Residential real estate            
Residential real estate loans for investment1,528,889  1,485,952  1,376,465  1,214,744  1,143,908 35   34  
Residential mortgage loans, early buy-out eligible loans guaranteed by U.S. Government Agencies18,847  44,333  45,508  44,854  240,902 (78)  (92) 
Total core loans$18,690,730  $17,989,306  $17,492,767  $17,338,730  $17,215,317 10 % 9 %
             
Niche loans:            
Commercial            
Franchise$1,176,569  $1,060,468  $1,128,493  $1,023,027  $964,150 20 % 22 %
Mortgage warehouse lines of credit468,162  529,867  587,868  567,389  503,371 (23)  (7) 
Community Advantage - homeowners association291,153  287,689  272,222  267,374  254,963 12   14  
Insurance agency lending260,482  273,999  290,880  222,519  214,411 23   21  
Premium Finance receivables            
U.S. commercial insurance3,921,289  3,805,504  3,342,730  3,438,087  3,494,155 19   12  
Canada commercial insurance695,688  716,367  615,813  616,402  565,989 17   23  
Life insurance6,655,453  6,359,556  6,111,495  5,857,436  5,488,832 18   21  
Consumer and other22,529  9,024  35,983  32,188  55,354 (40)  (59) 
Total niche loans$13,491,325  $13,042,474  $12,385,484  $12,024,422  $11,541,225 16 % 17 %
             
Commercial PPP loans:            
Originated in 2020$172,849  $656,502  $2,049,342  $2,715,921  $3,379,013 NM   (95)%
Originated in 2021909,139  1,222,905  1,243,640     100   100  
Total commercial PPP loans$1,081,988  $1,879,407  $3,292,982  $2,715,921  $3,379,013 (80)% (68)%
             
Total loans, net of unearned income$33,264,043  $32,911,187  $33,171,233  $32,079,073  $32,135,555 5 % 4 %

(1)   Annualized.
(2)   NM - Not meaningful.


TABLE 2: DEPOSIT PORTFOLIO MIX AND GROWTH RATES

              % Growth From
(Dollars in thousands)Sep 30,
2021
  Jun 30,
2021
  Mar 31,
2021
  Dec 31,
2020
  Sep 30,
2020
Dec 31,
2020 (1)
 Sep 30,
2020
Balance:                
Non-interest-bearing$13,255,417  $12,796,110  $12,297,337  $11,748,455  $10,409,747 17 % 27 %
NOW and interest-bearing demand deposits3,769,825  3,625,538  3,562,312  3,349,021   3,294,071 17   14  
Wealth management deposits (2)4,177,820  4,399,303  4,274,527  4,138,712   4,235,583 1   (1) 
Money market10,757,654  9,843,390  9,236,434  9,348,806   9,423,653 20   14  
Savings3,861,296  3,776,400  3,690,892  3,531,029   3,415,073 13   13  
Time certificates of deposit4,130,546  4,363,875  4,811,150  4,976,628   5,066,295 (23)  (18) 
Total deposits$39,952,558  $38,804,616  $37,872,652  $37,092,651  $35,844,422 10 % 11 %
Mix:                
Non-interest-bearing33% 33% 32% 32%  29%   
NOW and interest-bearing demand deposits9  9  9  9   9    
Wealth management deposits (2)11  11  11  11   12    
Money market27  25  25  25   26    
Savings10  10  10  10   10    
Time certificates of deposit10  12  13  13   14    
Total deposits100% 100% 100% 100%  100%   

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

 

TABLE 3: TIME CERTIFICATES OF DEPOSIT MATURITY/RE-PRICING ANALYSIS
As of September 30, 2021

(Dollars in thousands) Total Time
Certificates of
Deposit
 Weighted-Average
Rate of Maturing
Time Certificates
of Deposit (1)
1-3 months $918,517  0.99%
4-6 months 780,345  0.57 
7-9 months 628,839  0.41 
10-12 months 602,854  0.42 
13-18 months 621,320  0.56 
19-24 months 272,526  0.48 
24+ months 306,145  0.55 
Total $4,130,546  0.61%

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

TABLE 4: QUARTERLY AVERAGE BALANCES

  Average Balance for three months ended,
  Sep 30, Jun 30, Mar 31, Dec 31, Sep 30,
(In thousands) 2021 2021 2021 2020 2020
Interest-bearing deposits with banks and cash equivalents (1) $5,112,720   $3,844,355   $4,230,886   $4,381,040   $3,411,164  
Investment securities (2) 5,065,593   4,771,403   3,944,676   3,534,594   3,789,422  
FHLB and FRB stock 136,001   136,324   135,758   135,569   135,567  
Liquidity management assets (3) 10,314,314   8,752,082   8,311,320   8,051,203   7,336,153  
Other earning assets (3)(4) 28,238   23,354   20,370   18,716   16,656  
Mortgage loans held-for-sale 871,824   991,011   1,151,848   893,395   822,908  
Loans, net of unearned income (3)(5) 32,985,445   33,085,174   32,442,927   31,783,279   31,634,608  
Total earning assets (3) 44,199,821   42,851,621   41,926,465   40,746,593   39,810,325  
Allowance for loan and investment security losses (269,963)  (285,686)  (327,080)  (336,139)  (321,732) 
Cash and due from banks 425,000   470,566   366,413   344,536   345,438  
Other assets 2,837,652   2,910,250   3,022,935   3,055,015   3,128,813  
Total assets $47,192,510   $45,946,751   $44,988,733   $43,810,005   $42,962,844  
           
NOW and interest-bearing demand deposits $3,757,677   $3,626,424   $3,493,451   $3,320,527   $3,435,089  
Wealth management deposits 4,672,402   4,369,998   4,156,398   4,066,948   4,239,300  
Money market accounts 10,027,424   9,547,167   9,335,920   9,435,344   9,332,668  
Savings accounts 3,851,523   3,728,271   3,587,566   3,413,388   3,419,586  
Time deposits 4,236,317   4,632,796   4,875,392   5,043,558   4,900,839  
Interest-bearing deposits 26,545,343   25,904,656   25,448,727   25,279,765   25,327,482  
Federal Home Loan Bank advances 1,241,073   1,235,142   1,228,433   1,228,425   1,228,421  
Other borrowings 512,785   525,924   518,188   510,725   512,787  
Subordinated notes 436,746   436,644   436,532   436,433   436,323  
Junior subordinated debentures 253,566   253,566   253,566   253,566   253,566  
Total interest-bearing liabilities 28,989,513   28,355,932   27,885,446   27,708,914   27,758,579  
Non-interest-bearing deposits 12,834,084   12,246,274   11,811,194   10,874,912   9,988,769  
Other liabilities 1,024,998   1,087,767   1,127,203   1,175,893   1,180,594  
Equity 4,343,915   4,256,778   4,164,890   4,050,286   4,034,902  
Total liabilities and shareholders’ equity $47,192,510   $45,946,751   $44,988,733   $43,810,005   $42,962,844  
           
Net free funds/contribution (6) $15,210,308   $14,495,689   $14,041,019   $13,037,679   $12,051,746  

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

 

TABLE 5: QUARTERLY NET INTEREST INCOME

  Net Interest Income for three months ended,
  Sep 30, Jun 30, Mar 31, Dec 31, Sep 30,
(In thousands) 2021 2021 2021 2020 2020
Interest income:          
Interest-bearing deposits with banks and cash equivalents $2,000   $1,153   $1,199   $1,294   $1,181  
Investment securities 25,681   24,117   19,764   18,773   22,365  
FHLB and FRB stock 1,777   1,769   1,745   1,775   1,774  
Liquidity management assets (1) 29,458   27,039   22,708   21,842   25,320  
Other earning assets (1) 188   150   125   130   113  
Mortgage loans held-for-sale 7,716   8,183   9,036   6,357   5,791  
Loans, net of unearned income (1) 285,998   285,116   274,484   280,509   280,960  
Total interest income $323,360   $320,488   $306,353   $308,838   $312,184  
           
Interest expense:          
NOW and interest-bearing demand deposits $767   $736   $901   $1,074   $1,342  
Wealth management deposits 7,888   7,686   7,351   7,436   7,662  
Money market accounts 2,342   2,795   2,865   3,740   7,245  
Savings accounts 406   402   430   773   2,104  
Time deposits 7,902   12,679   16,397   19,579   20,731  
Interest-bearing deposits 19,305   24,298   27,944   32,602   39,084  
Federal Home Loan Bank advances 4,931   4,887   4,840   4,952   4,947  
Other borrowings 2,501   2,568   2,609   2,779   3,012  
Subordinated notes 5,480   5,512   5,477   5,509   5,474  
Junior subordinated debentures 2,744   2,724   2,704   2,742   2,703  
Total interest expense $34,961   $39,989   $43,574   $48,584   $55,220  
           
Less: Fully taxable-equivalent adjustment (903)  (909)  (884)  (857)  (1,028) 
Net interest income (GAAP) (2)  287,496   279,590   261,895   259,397   255,936  
Fully taxable-equivalent adjustment 903   909   884   857   1,028  
Net interest income, fully taxable-equivalent (non-GAAP) (2)  $288,399   $280,499   $262,779   $260,254   $256,964  

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

 

TABLE 6: QUARTERLY NET INTEREST MARGIN

  Net Interest Margin for three months ended,
  Sep 30,
2021
 Jun 30,
2021
 Mar 31,
2021
 Dec 31,
2020
 Sep 30,
2020
Yield earned on:          
Interest-bearing deposits with banks and cash equivalents 0.16 % 0.12 % 0.11 % 0.12 % 0.14 %
Investment securities 2.01   2.03   2.03   2.11   2.35  
FHLB and FRB stock 5.18   5.20   5.21   5.21   5.21  
Liquidity management assets 1.13   1.24   1.11   1.08   1.37  
Other earning assets 2.64   2.59   2.50   2.79   2.71  
Mortgage loans held-for-sale 3.51   3.31   3.18   2.83   2.80  
Loans, net of unearned income 3.44   3.46   3.43   3.51   3.53  
Total earning assets 2.90 % 3.00 % 2.96 % 3.02 % 3.12 %
           
Rate paid on:          
NOW and interest-bearing demand deposits 0.08 % 0.08 % 0.10 % 0.13 % 0.16 %
Wealth management deposits 0.67   0.71   0.72   0.73   0.72  
Money market accounts 0.09   0.12   0.12   0.16   0.31  
Savings accounts 0.04   0.04   0.05   0.09   0.24  
Time deposits 0.74   1.10   1.36   1.54   1.68  
Interest-bearing deposits 0.29   0.38   0.45   0.51   0.61  
Federal Home Loan Bank advances 1.58   1.59   1.60   1.60   1.60  
Other borrowings 1.94   1.96   2.04   2.16   2.34  
Subordinated notes 5.02   5.05   5.02   5.05   5.02  
Junior subordinated debentures 4.23   4.25   4.27   4.23   4.17  
Total interest-bearing liabilities 0.48 % 0.56 % 0.63 % 0.70 % 0.79 %
           
Interest rate spread (1)(2) 2.42 % 2.44 % 2.33 % 2.32 % 2.33 %
Less: Fully taxable-equivalent adjustment (0.01)  (0.01)  (0.01)  (0.01)  (0.01) 
Net free funds/contribution (3) 0.17   0.19   0.21   0.22   0.24  
Net interest margin (GAAP) (2) 2.58 % 2.62 % 2.53 % 2.53 % 2.56 %
Fully taxable-equivalent adjustment 0.01   0.01   0.01   0.01   0.01  
Net interest margin, fully taxable-equivalent (non-GAAP) (2) 2.59 % 2.63 % 2.54 % 2.54 % 2.57 %

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

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

 Average Balance
for nine months ended,
Interest
for nine months ended,
Yield/Rate
for nine months ended,
(Dollars in thousands)Sep 30,
2021
 Sep 30,
2020
Sep 30,
2021
 Sep 30,
2020
Sep 30,
2021
 Sep 30,
2020
Interest-bearing deposits with banks and cash equivalents (1)$4,399,217   $2,692,678  $4,352   $7,361  0.13 % 0.37 %
Investment securities (2)4,597,997   4,291,362  69,562   83,026  2.02   2.58  
FHLB and FRB stock136,028   128,611  5,291   5,116  5.20   5.31  
Liquidity management assets (3)(4)$9,133,242   $7,112,651  $79,205   $95,503  1.16 % 1.79 %
Other earning assets (3)(4)(5)24,016   17,576  463   393  2.59   2.99  
Mortgage loans held-for-sale1,003,868   644,611  24,935   13,720  3.32   2.84  
Loans, net of unearned income (3)(4)(6)32,839,837   29,643,281  845,598   878,981  3.44   3.96  
Total earning assets (4)$43,000,963   $37,418,119  $950,201   $988,597  2.95 % 3.53 %
Allowance for loan and investment security losses(294,033)  (240,467)       
Cash and due from banks420,874   339,968        
Other assets2,922,933   3,034,897        
Total assets$46,050,737   $40,552,517        
          
NOW and interest-bearing demand deposits$3,626,819   $3,291,176  $2,404   $6,569  0.09 % 0.27 %
Wealth management deposits4,401,489   3,821,203  22,925   21,840  0.70   0.76  
Money market accounts9,639,370   8,686,171  8,002   42,748  0.11   0.66  
Savings accounts3,723,420   3,334,944  1,238   11,736  0.04   0.47  
Time deposits4,579,161   5,176,307  36,978   73,683  1.08   1.90  
Interest-bearing deposits$25,970,259   $24,309,801  $71,547   $156,576  0.37 % 0.86 %
Federal Home Loan Bank advances1,234,929   1,131,823  14,658   13,241  1.59   1.56  
Other borrowings518,946   491,981  7,678   9,994  1.98   2.71  
Subordinated notes436,641   436,223  16,469   16,452  5.03   5.03  
Junior subordinated debentures253,566   253,566  8,172   8,266  4.25   4.28  
Total interest-bearing liabilities$28,414,341   $26,623,394  $118,524   $204,529  0.56 % 1.03 %
Non-interest-bearing deposits12,300,931   8,947,639        
Other liabilities1,079,614   1,096,297        
Equity4,255,851   3,885,187        
Total liabilities and shareholders’ equity$46,050,737   $40,552,517        
Interest rate spread (4)(7)      2.39 % 2.50 %
Less: Fully taxable-equivalent adjustment   (2,696)  (3,558) (0.01)  (0.01) 
Net free funds/contribution (8)$14,586,622   $10,794,725     0.20   0.30  
Net interest income/margin (GAAP) (4)   $828,981   $780,510  2.58 % 2.79 %
Fully taxable-equivalent adjustment   2,696   3,5580.01   0.01  
Net interest income/margin, fully taxable-equivalent (non-GAAP) (4)    $831,677   $784,068  2.59 % 2.80 %

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


TABLE 8: INTEREST RATE SENSITIVITY

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

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

Static Shock Scenario +200
Basis
Points
 +100
Basis
Points
 -100
Basis
Points
Sep 30, 2021 24.3% 11.5% (7.8)%
Jun 30, 2021 24.6  11.7  (6.9) 
Mar 31, 2021 22.0  10.2  (7.2) 
Dec 31, 2020 25.0  11.6  (7.9) 
Sep 30, 2020 23.4  10.9  (8.1) 

 

Ramp Scenario+200
Basis
Points
 +100
Basis
Points
 -100
Basis
Points
Sep 30, 202110.8% 5.4% (3.8)%
Jun 30, 202111.4  5.8  (3.3) 
Mar 31, 202110.7  5.4  (3.6) 
Dec 31, 202011.4  5.7  (3.3) 
Sep 30, 202010.7  5.2  (3.5) 

 

TABLE 9: MATURITIES AND SENSITIVITIES TO CHANGES IN INTEREST RATES

 Loans repricing or maturity period  
As of September 30, 2021One year or
less
 From one to five
years
 Over five years  
(In thousands)   Total
Commercial       
Fixed rate$484,771  $2,015,188  $837,153  $3,337,112 
Fixed Rate - PPP141,394  940,594    1,081,988 
Variable rate6,765,489  3,323  60  6,768,872 
Total commercial$7,391,654  $2,959,105  $837,213  $11,187,972 
Commercial real estate       
Fixed rate558,728  2,201,827  493,256  3,253,811 
Variable rate5,607,888  24,015    5,631,903 
Total commercial real estate$6,166,616  $2,225,842  $493,256  $8,885,714 
Home equity       
Fixed rate14,818  4,618  45  19,481 
Variable rate328,181      328,181 
Total home equity$342,999  $4,618  $45  $347,662 
Residential real estate       
Fixed rate19,165  6,415  819,685  845,265 
Variable rate58,698  258,143  385,630  702,471 
Total residential real estate$77,863  $264,558  $1,205,315  $1,547,736 
Premium finance receivables - commercial       
Fixed rate4,479,551  137,426    4,616,977 
Variable rate       
Total premium finance receivables - commercial$4,479,551  $137,426  $  $4,616,977 
Premium finance receivables - life insurance       
Fixed rate9,046  438,568  21,813  469,427 
Variable rate6,186,026      6,186,026 
Total premium finance receivables - life insurance$6,195,072  $438,568  $21,813  $6,655,453 
Consumer and other       
Fixed rate4,366  4,852  906  10,124 
Variable rate12,405      12,405 
Total consumer and other$16,771  $4,852  $906  $22,529 
        
Total per category       
Fixed rate5,570,445  4,808,894  2,172,858  12,552,197 
Fixed rate - PPP141,394  940,594    1,081,988 
Variable rate18,958,687  285,481  385,690  19,629,858 
Total loans, net of unearned income$24,670,526  $6,034,969  $2,558,548  $33,264,043 
        
Variable Rate Loan Pricing by Index:       
Prime      $2,989,860 
One- month LIBOR      9,177,387 
Three- month LIBOR      374,045 
Twelve- month LIBOR      6,499,434 
Thirty-day moving-average SOFR      174,768 
Other      414,364 
Total variable rate      $19,629,858 

LIBOR - London Interbank Offered Rate.
SOFR - Secured Overnight Financing Rate.

Graph available at the following link: http://ml.globenewswire.com/Resource/Download/576d571d-5850-417e-a3ea-048102b0a331

Source: Bloomberg

As noted in the table on the previous page, the majority of the Company’s portfolio is tied to LIBOR indices which, as shown in the table above, do not mirror the same changes as the Prime rate which has historically moved when the Federal Reserve raises or lowers interest rates.  Specifically, the Company has $9.2 billion of variable rate loans tied to one-month LIBOR and $6.5 billion of variable rate loans tied to twelve-month LIBOR. The above chart shows:

  Basis Point (bp) Change in
  Prime 1-month
LIBOR
 12-month
LIBOR
 
Third Quarter 2021 0bps-2bps-1bp
Second Quarter 2021 0 -1 -3 
First Quarter 2021 0 -3 -6 
Fourth Quarter 2020 0 -1 -2 
Third Quarter 2020 0 -1 -19 

 

TABLE 10: ALLOWANCE FOR CREDIT LOSSES

  Three Months EndedNine Months Ended
  Sep 30, Jun 30, Mar 31, Dec 31, Sep 30,Sep 30, Sep 30,
(Dollars in thousands) 2021 2021 2021 2020 20202021 2020
Allowance for credit losses at beginning of period $304,121   $321,308   $379,969   $388,971   $373,174  $379,969   $158,461  
Cumulative effect adjustment from the adoption of ASU 2016-13                  47,418  
Provision for credit losses (7,916)  (15,299)  (45,347)  1,180   25,026  (68,562)  213,040  
Other adjustments (65)  34   31   155   55     24  
Charge-offs:             
Commercial 1,352   3,237   11,781   5,184   5,270  16,370   13,109  
Commercial real estate 406   1,412   980   6,637   1,529  2,798   9,323  
Home equity 59   142      683   138  201   1,378  
Residential real estate 10   3   2   114   83  15   777  
Premium finance receivables 1,390   2,077   3,239   4,214   4,640  6,706   11,258  
Consumer and other 112   104   114   198   103  330   330  
Total charge-offs 3,329   6,975   16,116   17,030   11,763  26,420   36,175  
Recoveries:             
Commercial 816   902   452   4,168   428  2,170   924  
Commercial real estate 373   514   200   904   175  1,087   931  
Home equity 313   328   101   77   111  742   451  
Residential real estate 5   36   204   69   25  245   115  
Premium finance receivables 1,728   3,239   1,782   1,445   1,720  6,749   3,663  
Consumer and other 92   34   32   30   20  158   119  
Total recoveries 3,327   5,053   2,771   6,693   2,479  11,151   6,203  
Net charge-offs (2)  (1,922)  (13,345)  (10,337)  (9,284) (15,269)  (29,972) 
Allowance for credit losses at period end $296,138   $304,121   $321,308   $379,969   $388,971  $296,138   $388,971  
              
Annualized net charge-offs (recoveries) by category as a percentage of its own respective category’s average:   
Commercial 0.02 % 0.08 % 0.37 % 0.03 % 0.16 %0.16 % 0.15 %
Commercial real estate 0.00   0.04   0.04   0.27   0.06  0.03   0.14  
Home equity (0.28)  (0.20)  (0.10)  0.55   0.02  (0.19)  0.26  
Residential real estate 0.00   (0.01)  (0.06)  0.02   0.02  (0.02)  0.07  
Premium finance receivables (0.01)  (0.04)  0.06   0.11   0.12  0.00   0.11  
Consumer and other 0.26   0.69   0.57   0.78   0.49  0.54   0.41  
Total loans, net of unearned income 0.00 % 0.02 % 0.17 % 0.13 % 0.12 %0.06 % 0.14 %
              
Loans at period end $33,264,043   $32,911,187   $33,171,233   $32,079,073   $32,135,555     
Allowance for loan losses as a percentage of loans at period end 0.75 % 0.79 % 0.84 % 1.00 % 1.01 %   
Allowance for loan and unfunded lending-related commitment losses as a percentage of loans at period end 0.89   0.92   0.97   1.18   1.21     
Allowance for loan and unfunded lending-related commitment losses as a percentage of loans at period end, excluding PPP loans 0.92   0.98   1.08   1.29   1.35     

 

TABLE 11: ALLOWANCE AND PROVISION FOR CREDIT LOSSES BY COMPONENT

  Three Months EndedNine Months Ended
  Sep 30, Jun 30, Mar 31, Dec 31, Sep 30,Sep 30, Sep 30,
(In thousands) 2021 2021 2021 2020 20202021 2020
Provision for loan losses $(12,410)  $(14,731)  $(28,351)  $3,597   $21,678  $(55,492)  $184,896  
Provision for unfunded lending-related commitments losses 4,501   (558)  (17,035)  (2,413)  3,350  (13,092)  28,155  
Provision for held-to-maturity securities losses (7)  (10)  39   (4)  (2) 22   (11) 
Provision for credit losses $(7,916)  $(15,299)  $(45,347)  $1,180   $25,026  $(68,562)  $213,040  
              
Allowance for loan losses $248,612   $261,089   $277,709   $319,374   $325,959     
Allowance for unfunded lending-related commitments losses 47,443   42,942   43,500   60,536   62,949     
Allowance for loan losses and unfunded lending-related commitments losses 296,055   304,031   321,209   379,910   388,908     
Allowance for held-to-maturity securities losses 83   90   99   59   63     
Allowance for credit losses $296,138   $304,121   $321,308   $379,969   $388,971     

        

TABLE 12: ALLOWANCE BY LOAN PORTFOLIO

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

 As of Sep 30, 2021As of Jun 30, 2021As of Mar 31, 2021
(Dollars in thousands)Recorded
Investment
 Calculated
Allowance
 % of its
category’s
balance
Recorded
Investment
 Calculated
Allowance
 % of its
category’s
balance
Recorded
Investment
 Calculated
Allowance
 % of its
category’s
balance
Commercial:               
Commercial, industrial and other, excluding PPP loans$10,105,984  $109,780  1.09%$9,562,869  $98,505  1.03%$9,415,225  $95,637  1.02%
Commercial PPP loans1,081,988  2  0.00 1,879,407  2  0.00 3,292,982  3  0.00 
Commercial real estate:               
Construction and development1,343,715  34,101  2.54 1,385,249  38,550  2.78 1,353,324  45,327  3.35 
Non-construction7,541,999  105,934  1.40 7,293,120  119,972  1.65 7,191,455  136,465  1.90 
Home equity347,662  10,939  3.15 369,806  11,207  3.03 390,253  11,382  2.92 
Residential real estate1,547,736  16,272  1.05 1,530,285  15,684  1.02 1,421,973  14,242  1.00 
Premium finance receivables               
Commercial insurance loans4,616,977  17,996  0.39 4,521,871  19,346  0.43 3,958,543  16,945  0.43 
Life insurance loans6,655,453  579  0.01 6,359,556  553  0.01 6,111,495  532  0.01 
Consumer and other22,529  452  2.01 9,024  212  2.35 35,983  676  1.88 
Total loans, net of unearned income$33,264,043  $296,055  0.89%$32,911,187  $304,031  0.92%$33,171,233  $321,209  0.97%
Total loans, net of unearned income, excluding PPP loans$32,182,055  $296,053  0.92%$31,031,780  $304,029  0.98%$29,878,251  $321,206  1.08%
                
Total core loans (1)$18,690,730  $257,788  1.38%$17,989,306  $267,999  1.49%$17,492,767  $283,505  1.62%
Total niche loans (1)13,491,325  38,265  0.28 13,042,474  36,030  0.28 12,385,484  37,701  0.30 
Total PPP loans1,081,988  2  0.00 1,879,407  2  0.00 3,292,982  3  0.00 
                

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

TABLE 13: LOAN PORTFOLIO AGING

(Dollars in thousands) Sep 30, 2021 Jun 30, 2021 Mar 31, 2021 Dec 31, 2020 Sep 30, 2020
Loan Balances:          
Commercial          
Nonaccrual $26,468  $23,232  $22,459  $21,743  $42,036 
90+ days and still accruing   1,244    307   
60-89 days past due 9,768  5,204  13,292  6,900  2,168 
30-59 days past due 25,224  18,478  35,541  44,381  48,271 
Current 11,126,512  11,394,118  12,636,915  11,882,636  12,184,524 
Total commercial $11,187,972  $11,442,276  $12,708,207  $11,955,967  $12,276,999 
Commercial real estate          
Nonaccrual $23,706  $26,035  $34,380  $46,107  $68,815 
90+ days and still accruing          
60-89 days past due 5,395  4,382  8,156  5,178  8,299 
30-59 days past due 79,818  19,698  70,168  32,116  53,462 
Current 8,776,795  8,628,254  8,432,075  8,410,731  8,292,566 
Total commercial real estate $8,885,714  $8,678,369  $8,544,779  $8,494,132  $8,423,142 
Home equity          
Nonaccrual $3,449  $3,478  $5,536  $6,529  $6,329 
90+ days and still accruing 164         
60-89 days past due 340  301  492  47  70 
30-59 days past due 867  777  780  637  1,148 
Current 342,842  365,250  383,445  418,050  438,727 
Total home equity $347,662  $369,806  $390,253  $425,263  $446,274 
Residential real estate          
Nonaccrual $22,633  $23,050  $21,553  $26,071  $22,069 
90+ days and still accruing          
60-89 days past due 1,540  1,584  944  1,635  814 
30-59 days past due 1,076  2,139  13,768  12,584  2,443 
Current 1,522,487  1,503,512  1,385,708  1,219,308  1,359,484 
Total residential real estate $1,547,736  $1,530,285  $1,421,973  $1,259,598  $1,384,810 
Premium finance receivables          
Nonaccrual $7,300  $6,418  $9,690  $13,264  $21,080 
90+ days and still accruing 5,811  3,570  4,783  12,792  12,177 
60-89 days past due 15,804  7,759  5,113  27,801  38,286 
30-59 days past due 21,654  32,758  31,373  49,274  80,732 
Current 11,221,861  10,830,922  10,019,079  9,808,794  9,396,701 
Total premium finance receivables $11,272,430  $10,881,427  $10,070,038  $9,911,925  $9,548,976 
Consumer and other          
Nonaccrual $384  $485  $497  $436  $422 
90+ days and still accruing 126  178  161  264  175 
60-89 days past due 16  22  8  24  273 
30-59 days past due 125  75  74  136  493 
Current 21,878  8,264  35,243  31,328  53,991 
Total consumer and other $22,529  $9,024  $35,983  $32,188  $55,354 
Total loans, net of unearned income          
Nonaccrual $83,940  $82,698  $94,115  $114,150  $160,751 
90+ days and still accruing 6,101  4,992  4,944  13,363  12,352 
60-89 days past due 32,863  19,252  28,005  41,585  49,910 
30-59 days past due 128,764  73,925  151,704  139,128  186,549 
Current 33,012,375  32,730,320  32,892,465  31,770,847  31,725,993 
Total loans, net of unearned income $33,264,043  $32,911,187  $33,171,233  $32,079,073  $32,135,555 

 

TABLE 14: NON-PERFORMING ASSETS AND TROUBLED DEBT RESTRUCTURINGS ("TDRs")

 Sep 30, Jun 30, Mar 31, Dec 31, Sep 30,
(Dollars in thousands)2021 2021 2021 2020 2020
Loans past due greater than 90 days and still accruing (1):         
Commercial$  $1,244  $  $307  $ 
Commercial real estate         
Home equity164         
Residential real estate         
Premium finance receivables5,811  3,570  4,783  12,792  12,177 
Consumer and other126  178  161  264  175 
Total loans past due greater than 90 days and still accruing6,101  4,992  4,944  13,363  12,352 
Non-accrual loans:         
Commercial26,468  23,232  22,459  21,743  42,036 
Commercial real estate23,706  26,035  34,380  46,107  68,815 
Home equity3,449  3,478  5,536  6,529  6,329 
Residential real estate22,633  23,050  21,553  26,071  22,069 
Premium finance receivables7,300  6,418  9,690  13,264  21,080 
Consumer and other384  485  497  436  422 
Total non-accrual loans83,940  82,698  94,115  114,150  160,751 
Total non-performing loans:         
Commercial26,468  24,476  22,459  22,050  42,036 
Commercial real estate23,706  26,035  34,380  46,107  68,815 
Home equity3,613  3,478  5,536  6,529  6,329 
Residential real estate22,633  23,050  21,553  26,071  22,069 
Premium finance receivables13,111  9,988  14,473  26,056  33,257 
Consumer and other510  663  658  700  597 
Total non-performing loans$90,041  $87,690  $99,059  $127,513  $173,103 
Other real estate owned9,934  10,510  8,679  9,711  2,891 
Other real estate owned - from acquisitions3,911  5,062  7,134  6,847  6,326 
Other repossessed assets         
Total non-performing assets$103,886  $103,262  $114,872  $144,071  $182,320 
Accruing TDRs not included within non-performing assets$38,468  $44,019  $46,151  $47,023  $46,410 
Total non-performing loans by category as a percent of its own respective category’s period-end balance:         
Commercial0.24% 0.21% 0.18% 0.18% 0.34%
Commercial real estate0.27  0.30  0.40  0.54  0.82 
Home equity1.04  0.94  1.42  1.54  1.42 
Residential real estate1.46  1.51  1.52  2.07  1.59 
Premium finance receivables0.12  0.09  0.14  0.26  0.35 
Consumer and other2.26  7.35  1.83  2.17  1.08 
Total loans, net of unearned income0.27% 0.27% 0.30% 0.40% 0.54%
Total non-performing assets as a percentage of total assets0.22% 0.22% 0.25% 0.32% 0.42%
Allowance for loan losses and unfunded lending-related commitments losses as a percentage of non-accrual loans352.70% 367.64% 341.29% 332.82% 241.93%
          

(1)   As of September 30, 2021 and June 30, 2021, $445,000 and $320,000, respectively, of TDRs were past due greater than 90 days and still accruing interest. No TDRs as of March 31, 2021, December 31, 2020, and September 30, 2020 were past due greater than 90 days and still accruing interest.

Non-performing Loans Rollforward

 Three Months EndedNine Months Ended
 Sep 30, Jun 30, Mar 31, Dec 31, Sep 30,Sep 30, Sep 30,
(In thousands)2021 2021 2021 2020 20202021 2020
             
Balance at beginning of period$87,690   $99,059   $127,513   $173,103   $188,284  $127,513   $117,588  
Additions from becoming non-performing in the respective period9,341