10-Q

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 _________________________________________

FORM 10-Q

_________________________________________

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

For the quarterly period ended September 30, 2021

OR

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

For the transition period from              to

Commission File Number 001-35077

_____________________________________ 

WINTRUST FINANCIAL CORPORATION

(Exact name of registrant as specified in its charter) 

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

9700 W. Higgins Road, Suite 800

Rosemont, Illinois 60018

(Address of principal executive offices)

(847) 939-9000

(Registrant’s telephone number, including area code)

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

____________________________________ 

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

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

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

Large accelerated filer	☑		Accelerated filer	☐
Non-accelerated filer	☐	(Do not check if a smaller reporting company)	Smaller reporting company	☐
Emerging growth company	☐

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

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

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

Common Stock — no par value, 57,007,314 shares, as of October 31, 2021

TABLE OF CONTENTS

		Page
	PART I. — FINANCIAL INFORMATION
ITEM 1.	Financial Statements	1
ITEM 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	58
ITEM 3.	Quantitative and Qualitative Disclosures About Market Risk	98
ITEM 4.	Controls and Procedures	100
	PART II. — OTHER INFORMATION
ITEM 1.	Legal Proceedings	101
ITEM 1A.	Risk Factors	102
ITEM 2.	Unregistered Sales of Equity Securities and Use of Proceeds	102
ITEM 3.	Defaults Upon Senior Securities	NA
ITEM 4.	Mine Safety Disclosures	NA
ITEM 5.	Other Information	NA
ITEM 6.	Exhibits	103
	Signatures	104

PART I

ITEM 1. FINANCIAL STATEMENTS

WINTRUST FINANCIAL CORPORATION AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CONDITION
	(Unaudited)				(Unaudited)
(In thousands, except share data)	September 30, 2021		December 31, 2020		September 30, 2020
Assets
Cash and due from banks	$	462,244	$	322,415	$	308,639
Federal funds sold and securities purchased under resale agreements	55		59		56
Interest-bearing deposits with banks	5,232,315		4,802,527		3,825,823
Available-for-sale securities, at fair value	2,373,478		3,055,839		2,946,459
Held-to-maturity securities, at amortized cost, net of allowance for credit losses of $83, $59 and $63 at September 30, 2021, December 31, 2020 and September 30, 2020, respectively ($2.7 billion, $593.8 million and $575.9 million fair value at September 30, 2021, December 31, 2020 and September 30, 2020, respectively)	2,736,722		579,138		560,267
Trading account securities	1,103		671		1,720
Equity securities with readily determinable fair value	88,193		90,862		54,398
Federal Home Loan Bank and Federal Reserve Bank stock	135,408		135,588		135,568
Brokerage customer receivables	26,378		17,436		16,818
Mortgage loans held-for-sale, at fair value	925,312		1,272,090		959,671
Loans, net of unearned income	33,264,043		32,079,073		32,135,555
Allowance for loan losses	(248,612)		(319,374)		(325,959)
Net loans	33,015,431		31,759,699		31,809,596
Premises, software and equipment, net	748,872		768,808		774,288
Lease investments, net	243,933		242,434		230,373
Accrued interest receivable and other assets	1,166,917		1,351,455		1,424,728
Goodwill	645,792		645,707		644,644
Other intangible assets	30,118		36,040		38,670
Total assets	$	47,832,271	$	45,080,768	$	43,731,718
Liabilities and Shareholders’ Equity
Deposits:
Non-interest-bearing	$	13,255,417	$	11,748,455	$	10,409,747
Interest-bearing	26,697,141		25,344,196		25,434,675
Total deposits	39,952,558		37,092,651		35,844,422
Federal Home Loan Bank advances	1,241,071		1,228,429		1,228,422
Other borrowings	504,527		518,928		507,395
Subordinated notes	436,811		436,506		436,385
Junior subordinated debentures	253,566		253,566		253,566
Trade date securities payable	1,348		200,907		—
Accrued interest payable and other liabilities	1,032,073		1,233,786		1,387,439
Total liabilities	43,421,954		40,964,773		39,657,629
Shareholders' Equity:
Preferred stock, no par value; 20,000,000 shares authorized:
Series D - $25 liquidation value; 5,000,000 shares issued and outstanding at September 30, 2021, December 31, 2020 and September 30, 2020	125,000		125,000		125,000
Series E - $25,000 liquidation value; 11,500 shares issued and outstanding at September 30, 2021, December 31, 2020 and September 30, 2020	287,500		287,500		287,500
Common stock, no par value; $1.00 stated value; 100,000,000 shares authorized at September 30, 2021, December 31, 2020 and September 30, 2020; 58,793,715 shares issued at September 30, 2021, 58,473,252 shares issued at December 31, 2020 and 58,322,775 shares issued at September 30, 2020	58,794		58,473		58,323
Surplus	1,674,062		1,649,990		1,647,049
Treasury stock, at cost, 1,837,689 shares at September 30, 2021 and 1,703,627 shares at December 31, 2020, and 720,784 shares at September 30, 2020	(109,903)		(100,363)		(44,891)
Retained earnings	2,373,447		2,080,013		2,001,949
Accumulated other comprehensive income (loss)	1,417		15,382		(841)
Total shareholders’ equity	4,410,317		4,115,995		4,074,089
Total liabilities and shareholders’ equity	$	47,832,271	$	45,080,768	$	43,731,718

See accompanying notes to unaudited consolidated financial statements.

1

WINTRUST FINANCIAL CORPORATION AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED)

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

See accompanying notes to unaudited consolidated financial statements.

2

WINTRUST FINANCIAL CORPORATION AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (UNAUDITED)

	Three Months Ended				Nine Months Ended
(In thousands)	September 30, 2021		September 30, 2020		September 30, 2021		September 30, 2020
Net income	$	109,137	$	107,315	$	367,394	$	191,786
Unrealized (losses) gains on available-for-sale securities
Before tax	(14,141)		(14,563)		(68,555)		81,859
Tax effect	3,767		3,881		18,290		(21,816)
Net of tax	(10,374)		(10,682)		(50,265)		60,043
Reclassification of net gains on available-for-sale securities included in net income
Before tax	350		50		1,144		200
Tax effect	(94)		(14)		(307)		(54)
Net of tax	256		36		837		146
Reclassification of amortization of unrealized gains on investment securities transferred to held-to-maturity from available-for-sale
Before tax	54		54		158		178
Tax effect	(14)		(14)		(42)		(47)
Net of tax	40		40		116		131
Net unrealized (losses) gains on available-for-sale securities	(10,670)		(10,758)		(51,218)		59,766
Unrealized gains (losses) on derivative instruments
Before tax	9,004		10,393		51,008		(31,167)
Tax effect	(2,400)		(2,770)		(13,594)		8,325
Net unrealized gains (losses) on derivative instruments	6,604		7,623		37,414		(22,842)
Foreign currency adjustment
Before tax	(5,858)		3,716		(248)		(3,939)
Tax effect	1,208		(825)		87		852
Net foreign currency adjustment	(4,650)		2,891		(161)		(3,087)
Total other comprehensive (loss) income	(8,716)		(244)		(13,965)		33,837
Comprehensive income	$	100,421	$	107,071	$	353,429	$	225,623

See accompanying notes to unaudited consolidated financial statements.

3

WINTRUST FINANCIAL CORPORATION AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS’ EQUITY (UNAUDITED)
(In thousands, except per share data)	Preferred stock		Common stock		Surplus		Treasury stock		Retained earnings		Accumulated other comprehensive (loss) income		Total shareholders’ equity
Balance at June 30, 2020	$	412,500	$	58,294	$	1,643,864	$	(44,891)	$	1,921,048	$	(597)	$	3,990,218
Net income	—		—		—		—		107,315		—		107,315
Other comprehensive loss, net of tax	—		—		—		—		—		(244)		(244)
Cash dividends declared on common stock, $0.28 per share	—		—		—		—		(16,128)		—		(16,128)
Dividends on Series D preferred stock, $0.41 per share and Series E preferred stock, $716.15 per share	—		—		—		—		(10,286)		—		(10,286)
Stock-based compensation	—		—		1,255		—		—		—		1,255
Common stock issued for:
Exercise of stock options and warrants	—		7		490		—		—		—		497
Restricted stock awards	—		2		(2)		—		—		—		—
Employee stock purchase plan	—		20		827		—		—		—		847
Director compensation plan	—		—		615		—		—		—		615
Balance at September 30, 2020	$	412,500	$	58,323	$	1,647,049	$	(44,891)	$	2,001,949	$	(841)	$	4,074,089
Balance at January 1, 2020	$	125,000	$	57,951	$	1,650,278	$	(6,931)	$	1,899,630	$	(34,678)	$	3,691,250
Cumulative effect adjustment from the adoption of ASU 2016-13, net of tax	—		—		—		—		(26,717)		—		(26,717)
Net income	—		—		—		—		191,786		—		191,786
Other comprehensive income, net of tax	—		—		—		—		—		33,837		33,837
Cash dividends declared on common stock, $0.84 per share	—		—		—		—		(48,364)		—		(48,364)
Dividends on Series D preferred stock, $1.23 per share and Series E preferred stock, $716.15 per share	—		—		—		—		(14,386)		—		(14,386)
Common stock repurchases under authorized program	—		—		—		(37,116)		—		—		(37,116)
Stock-based compensation	—		—		(1,023)		—		—		—		(1,023)
Issuance of Series E preferred stock	287,500		—		(9,857)		—		—		—		277,643
Common stock issued for:
Exercise of stock options and warrants	—		105		3,923		(92)		—		—		3,936
Restricted stock awards	—		195		(195)		(752)		—		—		(752)
Employee stock purchase plan	—		52		2,180		—		—		—		2,232
Director compensation plan	—		20		1,743		—		—		—		1,763
Balance at September 30, 2020	$	412,500	$	58,323	$	1,647,049	$	(44,891)	$	2,001,949	$	(841)	$	4,074,089
Balance at June 30, 2021	$	412,500	$	58,770	$	1,669,002	$	(100,363)	$	2,288,969	$	10,133	$	4,339,011
Net income	—		—		—		—		109,137		—		109,137
Other comprehensive loss, net of tax	—		—		—		—		—		(8,716)		(8,716)
Cash dividends declared on common stock, $0.31 per share	—		—		—		—		(17,668)		—		(17,668)
Dividends on Series D preferred stock, $0.41 per share and Series E preferred stock, $429.69 per share	—		—		—		—		(6,991)		—		(6,991)
Common stock repurchases under authorized program	—		—		—		(9,540)		—		—		(9,540)
Stock-based compensation	—		—		3,243		—		—		—		3,243
Common stock issued for:
Exercise of stock options and warrants	—		8		310		—		—		—		318
Restricted stock awards	—		3		(3)		—		—		—		—
Employee stock purchase plan	—		13		915		—		—		—		928
Director compensation plan	—		—		595		—		—		—		595
Balance at September 30, 2021	$	412,500	$	58,794	$	1,674,062	$	(109,903)	$	2,373,447	$	1,417	$	4,410,317
Balance at January 1, 2021	$	412,500	$	58,473	$	1,649,990	$	(100,363)	$	2,080,013	$	15,382	$	4,115,995
Net income	—		—		—		—		367,394		—		367,394
Other comprehensive loss, net of tax	—		—		—		—		—		(13,965)		(13,965)
Cash dividends declared on common stock, $0.93 per share	—		—		—		—		(52,987)		—		(52,987)
Dividends on Series D preferred stock, $1.23 per share and Series E preferred stock, $1,289.07 per share	—		—		—		—		(20,973)		—		(20,973)
Common stock repurchased under authorized program	—		—		—		(9,540)		—		—		(9,540)
Stock-based compensation	—		—		9,437		—		—		—		9,437
Common stock issued for:
Exercise of stock options and warrants	—		246		10,313		—		—		—		10,559
Restricted stock awards	—		13		(13)		—		—		—		—
Employee stock purchase plan	—		38		2,510		—		—		—		2,548
Director compensation plan	—		24		1,825		—		—		—		1,849
Balance at September 30, 2021	$	412,500	$	58,794	$	1,674,062	$	(109,903)	$	2,373,447	$	1,417	$	4,410,317

See accompanying notes to unaudited consolidated financial statements.

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WINTRUST FINANCIAL CORPORATION AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)

	Nine Months Ended
(In thousands)	September 30, 2021		September 30, 2020
Operating Activities:
Net income	$	367,394	$	191,786
Adjustments to reconcile net income to net cash provided by (used for) operating activities
Provision for credit losses	(68,562)		213,040
Depreciation, amortization and accretion, net	75,389		71,295
Stock-based compensation expense (benefit)	9,437		(1,023)
Amortization of premium on securities, net	5,188		8,079
Accretion of discount and deferred fees on loans, net	(68,413)		(60,451)
Mortgage servicing rights fair value changes, net	15,685		49,097
Non-designated derivatives fair value changes, net	(378)		(600)
Originations and purchases of mortgage loans held-for-sale	(5,504,906)		(5,653,486)
Early buy-out exercises of mortgage loans held-for-sale guaranteed by U.S. Government Agencies, net of subsequent paydowns or payoffs	(9,747)		(71,625)
Proceeds from sales of mortgage loans held-for-sale	6,014,689		5,280,587
Bank owned life insurance ("BOLI") income	(4,620)		(1,884)
Increase in trading securities, net	(432)		(652)
Increase in brokerage customer receivables, net	(8,942)		(245)
Gains on mortgage loans sold	(178,927)		(260,622)
(Gains) losses on investment securities, net	(8)		3,140
(Gains) losses on sales of premises and equipment, net, and sale of related deposit liabilities	(3,649)		192
Gains on sales and fair value adjustments of other real estate owned, net	(2,134)		(933)
Decrease (increase) in accrued interest receivable and other assets, net	121,657		(154,912)
Decrease in accrued interest payable and other liabilities, net	(27,720)		(33,935)
Net Cash Provided by (Used for) Operating Activities	731,001		(423,152)
Investing Activities:
Proceeds from maturities and calls of available-for-sale securities	1,101,149		1,005,968
Proceeds from maturities and calls of held-to-maturity securities	177,668		698,305
Proceeds from sales of available-for-sale securities	192,227		502,676
Proceeds from sales of equity securities with readily determinable fair value	9,759		6,530
Proceeds from sales and capital distributions of equity securities without readily determinable fair value	2,467		1,691
Purchases of available-for-sale securities	(682,172)		(1,273,798)
Purchases of held-to-maturity securities	(2,537,242)		(125,220)
Purchases of equity securities with readily determinable fair value	(6,000)		(11,367)
Purchases of equity securities without readily determinable fair value	(7,295)		(3,666)
Purchases of Federal Home Loan Bank and Federal Reserve Bank stock, net	180		(34,829)
Contributions to investments in partnerships, net	(2,757)		(606)
Proceeds from sales of other real estate owned	7,263		6,937
Increase in interest-bearing deposits with banks, net	(428,917)		(1,662,172)
Increase in loans, net	(1,169,636)		(5,174,163)
Purchases of premises and equipment, net	(23,434)		(54,392)
Net Cash Used for Investing Activities	(3,366,740)		(6,118,106)
Financing Activities:
Increase in deposit accounts, net	2,863,778		5,737,721
(Decrease) increase in other borrowings, net	(15,716)		91,823
Increase in Federal Home Loan Bank advances, net	12,629		553,500
Proceeds from the issuance of preferred stock, net	—		277,643
Cash payments to settle contingent consideration liabilities recognized in business combinations	(16,583)		(4,523)
Issuance of common shares resulting from the exercise of stock options, employee stock purchase plan and conversion of common stock warrants	14,956		8,023
Common stock repurchases under authorized program	(9,540)		(37,116)
Common stock repurchases for tax withholdings related to stock-based compensation	—		(844)
Dividends paid	(73,960)		(62,750)
Net Cash Provided by Financing Activities	2,775,564		6,563,477
Net Increase in Cash and Cash Equivalents	139,825		22,219
Cash and Cash Equivalents at Beginning of Period	322,474		286,476
Cash and Cash Equivalents at End of Period	$	462,299	$	308,695

See accompanying notes to unaudited consolidated financial statements.

5

WINTRUST FINANCIAL CORPORATION AND SUBSIDIARIES

NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS

(1) Basis of Presentation

The interim consolidated financial statements of Wintrust Financial Corporation and its subsidiaries (collectively, “Wintrust” or the “Company”) presented herein are unaudited, but in the opinion of management, reflect all necessary adjustments of a normal or recurring nature for a fair presentation of results as of the dates and for the periods covered by the interim consolidated financial statements.

The accompanying interim consolidated financial statements are unaudited and do not include information or footnotes necessary for a complete presentation of financial condition, results of operations or cash flows in accordance with U.S. generally accepted accounting principles (“GAAP”). The interim unaudited consolidated financial statements should be read in conjunction with the consolidated financial statements and notes included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2020 (“2020 Form 10-K”). Operating results reported for the period are not necessarily indicative of the results which may be expected for the entire year. Reclassifications of certain prior period amounts have been made to conform to the current period presentation.

The preparation of the financial statements requires management to make estimates, assumptions and judgments that affect the reported amounts of assets and liabilities. Management believes that the estimates made are reasonable; however, changes in estimates may be required if economic or other conditions develop differently from management’s expectations. Certain policies and accounting principles inherently have a greater reliance on the use of estimates, assumptions and judgments and as such have a greater possibility of producing results that could be materially different than originally reported. Management views critical accounting policies to be those which are highly dependent on subjective or complex judgments, estimates and assumptions, and where changes in those estimates and assumptions could have a significant impact on the financial statements. Management currently views the determination of the allowance for credit losses, including the allowance for loan losses, the allowance for unfunded commitment losses and the allowance for held-to-maturity securities losses, estimations of fair value, the valuations required for impairment testing of goodwill, the valuation and accounting for derivative instruments and income taxes as the accounting areas that require the most subjective and complex judgments, and as such could be the most subject to revision as new information becomes available. Descriptions of the Company’s significant accounting policies are included in Note 1 - “Summary of Significant Accounting Policies” of the 2020 Form 10-K.

(2) Recent Accounting Developments

Legislation and Regulations Issued as a Result of the COVID-19 Pandemic

On March 27, 2020, the President of the United States signed the Coronavirus Aid, Relief, and Economic Security Act (the "CARES Act" or the "Act"), which provides entities with optional temporary relief from certain accounting and financial reporting requirements under U.S. GAAP.

Section 4013 of the CARES Act allows financial institutions to suspend application of certain current troubled debt restructuring ("TDR") accounting guidance under Accounting Standards Codification (“ASC”) 310-40 for loan modifications related to the COVID-19 pandemic made between March 1, 2020 and the earlier of December 31, 2020 or 60 days after the end of the COVID-19 national emergency, provided certain criteria are met. This relief can be applied to loan modifications for borrowers that were not more than 30 days past due as of December 31, 2019 and to loan modifications that defer or delay the payment of principal or interest, or change the interest rate on the loan. On December 27, 2020, the Consolidated Appropriations Act, 2021 (the "CAA"), which combined stimulus relief for the COVID-19 pandemic with an omnibus spending bill for the 2021 fiscal year, was signed by the President of the United States. The CAA included extension of TDR accounting relief provided under the CARES Act to January 1, 2022. The Company chose to apply this relief to eligible loan modifications.

The business tax provisions of the Act include temporary changes to income and non-income based tax laws, including immediate recovery of qualified improvement property costs and acceleration of Alternative Minimum Tax (AMT) credits. These provisions did not have a material impact on the Company's deferred taxes.

In April 2020, federal and state banking regulators issued the Interagency Statement on Loan Modifications and Reporting for Financial Institutions Working with Customers Affected by the Coronavirus to provide separate relief, specifically indicating that if a modification is either short-term (e.g., six months) or mandated by a federal or state government in response to the COVID-19 pandemic, the borrower is not considered to be experiencing financial difficulty and thus does not represent a TDR under ASC 310-40. Additionally, in August 2020, regulators issued the Joint Statement on Additional Loan Accommodations

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Related to the COVID-19 pandemic to provide prudent risk management and consumer protection principles for financial institutions to consider while working with borrowers as loans near the end of initial loan accommodation periods applicable during the COVID-19 pandemic. The Company continues to prudently work with borrowers negatively impacted by the COVID-19 pandemic while managing credit risks and recognizing appropriate allowance for credit losses on its loan portfolio.

Reference Rate Reform

In March 2020, the FASB issued ASU No. 2020-04, “Reference Rate Reform (Topic 848),” which provides temporary optional relief for contracts modified as a result of reference rate reform meeting certain modification criteria, generally allowing an entity to account for contract modifications occurring due to reference rate reform as an event that does not require contract remeasurement or reassessment of a previous accounting determination at the modification date. The guidance also includes temporary optional expedients intended to provide relief from various hedge effectiveness requirements for hedging relationships affected by reference rate reform, provided certain criteria are met, and allows a one-time election to sell or transfer to either available-for-sale or trading any held-to-maturity ("HTM") debt securities that refer to an interest rate affected by reference rate reform and were classified as HTM prior to January 1, 2020. Additionally, in January 2021, the FASB issued ASU No. 2021-01, “Reference Rate Reform (Topic 848): Scope,” which provided additional clarification that certain optional expedients and exceptions noted above apply to derivative instruments that use an interest rate for margining, discounting or contract price alignment that is modified as a result of reference rate reform. This guidance was effective upon issuance and can be applied prospectively, with certain exceptions, through December 31, 2022.

In November 2020, federal and state banking regulators issued the “Interagency Policy Statement on Reference Rates for Loans" to reiterate that a specific replacement rate for loans impacted by reference rate reform has not been endorsed and entities may utilize any replacement reference rate determined to be appropriate based on its funding model and customer needs. As discussed in the “Interagency Policy Statement on Reference Rates for Loans," fallback language should be included in lending contracts to provide for use of a robust fallback rate if the initial reference rate is discontinued. Additionally, federal banking regulators issued the "Interagency Statement on LIBOR Transition" acknowledging that the administrator of USD London Interbank Offered Rate (LIBOR) benchmarks has announced it will consult on its intention to cease the publication of the one week and two month USD LIBOR settings immediately following the LIBOR publication on December 31, 2021, and the remaining USD LIBOR settings immediately following the LIBOR publication on June 30, 2023. On March 5, 2021, the administrator of USD LIBOR benchmarks confirmed these dates and will cease publication of USD LIBOR tenors accordingly. As discussed in the "Interagency Statement on LIBOR Transition," regulators encouraged banks to cease entering into new contracts that use USD LIBOR as a reference rate as soon as practicable and in any event by December 31, 2021, in order to facilitate an orderly, safe and sound LIBOR transition. The Company continues to monitor efforts and evaluate the impact of reference rate reform on its consolidated financial statements.

Income Taxes

In December 2019, the FASB issued ASU No. 2019-12, "Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes," to simplify the accounting for income taxes by removing certain exceptions to the general principles of ASC 740, "Income Taxes". The guidance also improved consistent application by clarifying and amending existing guidance from ASC 740. The Company adopted ASU No. 2019-12 as of January 1, 2021. Adoption of this standard did not have a material impact on the Company’s consolidated financial statements.

Investment Securities

In January 2020, the FASB issued ASU No. 2020-01, “Clarifying the Interactions Between Investments-Equity Securities (ASC Topic 321), Investments-Equity Method and Joint Ventures (ASC Topic 323), and Derivatives and Hedging (ASC Topic 815),” which amended ASC 323, Investments-Equity Method & Joint Ventures to clarify that an entity should consider observable transactions that require it to either apply or discontinue using the equity method of accounting for purposes of applying the measurement alternative in accordance with ASC 321, Investments-Equity Securities, immediately before applying or discontinuing the equity method under ASC 323.

The guidance also amended ASC 815, Derivatives & Hedging, to clarify that, when determining the accounting for certain nonderivative forward contracts and purchased options, an entity should not consider how to account for the resulting investments upon eventual settlement or exercise, and that an entity should evaluate the remaining characteristics in accordance with ASC 815 to determine the accounting for those forward contracts and purchased options.

The Company adopted ASU No. 2020-01 as of January 1, 2021 under a prospective approach. Adoption of this standard did not have a material impact on the Company’s consolidated financial statements.

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Codification Improvements

In October 2020, the FASB issued ASU No. 2020-08, “Codification Improvements to Subtopic 310-20, Receivables — Nonrefundable Fees and Other Costs,” clarifying that, for each reporting period, an entity should reevaluate whether a callable debt security with multiple call dates is within the scope of ASC 310-20, which was amended to require amortization of any premium to the next call date. The next call date was defined as the first date when a call option at a specified price becomes exercisable. The Company adopted ASU No. 2020-08 as of January 1, 2021 under a prospective approach. Adoption of this standard did not have a material impact on the Company’s consolidated financial statements.

Additionally, the FASB issued ASU No. 2020-10, “Codification Improvements,” in October 2020 to improve the consistency of the Codification by adding or moving disclosure-specific guidance contained in the Other Presentation Matters section to the appropriate Disclosure Section for various Topics. The Company adopted ASU No. 2020-10 as of January 1, 2021 under a retrospective approach. Adoption of this standard did not have a material impact on the Company’s consolidated financial statements.

Financial Disclosures about Acquired and Disposed Businesses

In May 2020, the SEC issued a final rule on “Amendments to Financial Disclosures about Acquired and Disposed Businesses,” which provides for specific disclosure changes, including revising the investment and income significance tests, conforming the significance threshold and tests for a disposed business to those used for an acquired business, permitting abbreviated financial statements for certain acquisitions of a component of an entity, and reducing the maximum number of years for which financial statements are required for acquired businesses from three years to two years, among other amendments. This guidance was effective on January 1, 2021. The Company does not expect this to have a material impact on the Company’s consolidated financial statements.

In August 2021, the FASB issued ASU No. 2021-06, "Presentation of Financial Statements (Topic 206), Financial Services - Depository and Lending (Topic 942), and Financial Services - Investment Companies (Topic 946)" which amends certain SEC paragraphs in the codification in response to SEC final rule over Financial Disclosures about Acquired and Disposed Businesses by amending ASC Topic 946 by providing additional guidance on financial statement requirements related to Regulation S-X Rule 6-11, Financial Statements of Funds Acquired or to be Acquired. This guidance was effective upon issuance on August 9, 2021. Adoption of this standard did not have a material impact on the Company’s consolidated financial statements.

Debt

In August 2020, the FASB issued ASU No. 2020-06, “Debt-Debt with Conversion and Other Options (Subtopic 470-20) and Derivatives and Hedging-Contracts in Entity’s Own Equity (Subtopic 815-40): Accounting for Convertible Instruments and Contracts in an Entity’s Own Equity,” which includes provisions for reducing the number of accounting models used in accounting for convertible debt instruments and convertible preferred stock, amending derivatives and earnings-per-share (EPS) guidance and expanding disclosures for convertible debt instruments and EPS. This guidance is effective for fiscal years beginning after December 15, 2021, including interim periods therein, and is to be applied under either a full or modified retrospective approach. Early adoption is permitted. The Company does not expect this guidance to have a material impact on the Company’s consolidated financial statements.

Statistical Disclosures for Bank and Savings and Loan Registrants

In September 2020, the SEC issued a final rule on the “Update of Statistical Disclosures for Bank and Savings and Loan Registrants,” which adopts rules to update statistical disclosure requirements for banking registrants. The amendments update and expand the disclosures that registrants are required to provide, codify certain Industry Guide 3 disclosure items and eliminate other Guide 3 disclosures that overlap with SEC rules, GAAP or IFRS standards. In addition, Guide 3 is being rescinded and replaced with a new subpart of Regulation S-K. The SEC ruling is applicable to fiscal years beginning after December 15, 2021 and early compliance is permitted. The Company does not expect this guidance to have a material impact on the Company’s consolidated financial statements.

In August 2021, the FASB issued ASU No. 2021-06, "Presentation of Financial Statements (Topic 206), Financial Services - Depository and Lending (Topic 942), and Financial Services - Investment Companies (Topic 946)" which amends certain SEC paragraphs in the codification in response to the SEC final rule on the Update of Statistical Disclosures for Banks and Savings and Loan Registrants by removing the disclosure requirements for various categories of loans contained in ASC

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Topic 942. This guidance was effective upon issuance on August 9, 2021. Adoption of this standard did not have a material impact on the Company’s consolidated financial statements.

Issuer’s Accounting for Modifications or Exchanges of Freestanding Equity-Classified Written Call Options

In May 2021, the FASB issued ASU No. 2021-04, “Earnings Per Share (Topic 260), Debt—Modifications and Extinguishments (Subtopic 470-50), Compensation—Stock Compensation (Topic 718), and Derivatives and Hedging—Contracts in Entity’s Own Equity (Subtopic 815-40): Issuer’s Accounting for Certain Modifications or Exchanges of Freestanding Equity-Classified Written Call Options,” which requires an issuer to account for any modification or exchange of the terms or conditions of a freestanding written call option classified as equity, such as warrants, that remains classified as equity as an exchange of the original instrument for a new instrument and provides a framework for measuring and recognizing the effect of the exchange as an adjustment to either equity or expense. This guidance is effective for fiscal years beginning after December 15, 2021, including interim periods therein, and is to be applied prospectively. Early adoption is permitted. The Company does not expect this guidance to have a material impact on the Company’s consolidated financial statements.

Leases - Certain Leases with Variable Lease Payments

In July 2021, the FASB issued ASU No. 2021-05, "Leases (Topic 842): Lessors – Certain Leases with Variable Lease Payments" which amends lessor lease classification requirements to allow leases with variable lease payments that are not dependent on a reference index or rate to be classified and accounted for as an operating lease, provided the lease would have been classified as a sales-type or direct financing lease and the lessor would have otherwise recognized a day-one loss. This guidance is effective for fiscal years beginning after December 15, 2021, including interim periods therein, with early adoption permitted. As the Company has adopted ASC Topic 842, this guidance is to be applied retrospectively to leases that commenced or were modified after adoption or prospectively to leases that will commence or be modified after the application of these amendments. The Company does not expect this guidance to have a material impact on the Company's consolidated financial statements.

(3) Cash and Cash Equivalents

For purposes of the Consolidated Statements of Cash Flows, the Company considers cash and cash equivalents to include cash on hand, cash items in the process of collection, non-interest bearing amounts due from correspondent banks, federal funds sold and securities purchased under resale agreements with original maturities of three months or less. These items are included within the Company’s Consolidated Statements of Condition as cash and due from banks, and federal funds sold and securities purchased under resale agreements.

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(4) Investment Securities

The following tables are a summary of the investment securities portfolios as of the dates shown:

	September 30, 2021
(Dollars in thousands)	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value
Available-for-sale securities
U.S. Treasury	$	6,000	$	—	$	—	$	6,000
U.S. Government agencies	50,163		3,112		—		53,275
Municipal	170,612		4,202		(214)		174,600
Corporate notes:
Financial issuers	98,848		500		(1,241)		98,107
Other	1,000		11		—		1,011
Mortgage-backed: (1)
Mortgage-backed securities	1,913,139		44,931		(25,434)		1,932,636
Collateralized mortgage obligations	107,657		192		—		107,849
Total available-for-sale securities	$	2,347,419	$	52,948	$	(26,889)	$	2,373,478
Held-to-maturity securities
U.S. Government agencies	$	176,143	$	482	$	(2,878)	$	173,747
Municipal	190,662		10,321		(334)		200,649
Mortgage-backed securities	2,318,309		1,924		(46,102)		2,274,131
Corporate notes	51,691		—		(738)		50,953
Total held-to-maturity securities	$	2,736,805	$	12,727	$	(50,052)	$	2,699,480
Less: Allowance for credit losses	(83)
Held-to-maturity securities, net of allowance for credit losses	$	2,736,722
Equity securities with readily determinable fair value	$	83,909	$	5,678	$	(1,394)	$	88,193

(1)Consisting entirely of residential mortgage-backed securities, none of which are subprime.

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	December 31, 2020
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value
(Dollars in thousands)
Available-for-sale securities
U.S. Treasury	$	304,956	$	15	$	—	$	304,971
U.S. Government agencies	80,074		4,439		—		84,513
Municipal	141,244		5,707		(41)		146,910
Corporate notes:
Financial issuers	91,786		1,363		(2,764)		90,385
Other	1,000		20		—		1,020
Mortgage-backed: (1)
Mortgage-backed securities	2,330,332		86,721		(15)		2,417,038
Collateralized mortgage obligations	10,689		313		—		11,002
Total available-for-sale securities	$	2,960,081	$	98,578	$	(2,820)	$	3,055,839
Held-to-maturity securities
U.S. Government agencies	$	177,959	$	2,552	$	—	$	180,511
Municipal	200,707		12,232		(214)		212,725
Mortgage-backed securities	200,531		—		—		200,531
Total held-to-maturity securities	$	579,197	$	14,784	$	(214)	$	593,767
Less: Allowance for credit losses	(59)
Held-to-maturity securities, net of allowance for credit losses	$	579,138
Equity securities with readily determinable fair value	$	87,618	$	3,674	$	(430)	$	90,862

(1)Consisting entirely of residential mortgage-backed securities, none of which are subprime.

	September 30, 2020
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value
(Dollars in thousands)
Available-for-sale securities
U.S. Treasury	$	279,903	$	206	$	(1)	$	280,108
U.S. Government agencies	172,951		5,715		—		178,666
Municipal	150,333		3,996		(134)		154,195
Corporate notes:
Financial issuers	106,764		455		(4,110)		103,109
Other	1,000		26		—		1,026
Mortgage-backed: (1)
Mortgage-backed securities	2,121,423		94,543		(11)		2,215,955
Collateralized mortgage obligations	13,036		365		(1)		13,400
Total available-for-sale securities	$	2,845,410	$	105,306	$	(4,257)	$	2,946,459
Held-to-maturity securities
U.S. Government agencies	$	349,415	$	4,396	$	—	$	353,811
Municipal	$	210,915	11,339		(118)		222,136
Total held-to-maturity securities	$	560,330	$	15,735	$	(118)	$	575,947
Less: Allowance for credit losses	(63)
Held-to-maturity securities, net of allowance for credit losses	$	560,267
Equity securities with readily determinable fair value	$	53,250	$	1,537	$	(389)	$	54,398

(1)Consisting entirely of residential mortgage-backed securities, none of which are subprime.

Equity securities without readily determinable fair values totaled $35.2 million as of September 30, 2021. Equity securities without readily determinable fair values are included as part of accrued interest receivable and other assets in the Company’s Consolidated Statements of Condition. The Company monitors its equity investments without readily determinable fair values

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to identify potential transactions that may indicate an observable price change in orderly transactions for the identical or a similar investment of the same issuer, requiring adjustment to its carrying amount. The Company recorded no upward and no downward adjustments related to such observable price changes for the three and nine months ended September 30, 2021. The Company conducts a quarterly assessment of its equity securities without readily determinable fair values to determine whether impairment exists in such securities, considering, among other factors, the nature of the securities, financial condition of the issuer and expected future cash flows. The Company recorded $2.1 million of impairment of equity securities without readily determinable fair values for the three months ended September 30, 2021. For the nine months ended September 30, 2021, the Company recorded $2.2 million of impairment of equity securities without readily determinable fair values.

The following table presents the portion of the Company’s available-for-sale investment securities portfolios that have gross unrealized losses, reflecting the length of time that individual securities have been in a continuous unrealized loss position at September 30, 2021:

	Continuous unrealized losses existing for less than 12 months				Continuous unrealized losses existing for greater than 12 months				Total
(Dollars in thousands)	Fair Value		Unrealized Losses		Fair Value		Unrealized Losses		Fair Value		Unrealized Losses
Available-for-sale securities
U.S. Treasury	$	—	$	—	$	—	$	—	$	—	$	—
U.S. Government agencies	—		—		—		—		—		—
Municipal	54,995		(210)		111		(4)		55,106		(214)
Corporate notes:
Financial issuers	24,778		(223)		45,975		(1,018)		70,753		(1,241)
Other	—		—		—		—		—		—
Mortgage-backed:
Mortgage-backed securities	850,161		(25,434)		—		—		850,161		(25,434)
Collateralized mortgage obligations	—		—		—		—		—		—
Total available-for-sale securities	$	929,934	$	(25,867)	$	46,086	$	(1,022)	$	976,020	$	(26,889)

The Company conducts a regular assessment of its investment securities to determine whether securities are experiencing credit losses. Factors for consideration include the nature of the securities, credit ratings or financial condition of the issuer, the extent of the unrealized loss, expected cash flows, market conditions and the Company’s ability to hold the securities through the anticipated recovery period.

The Company does not consider available-for-sale securities with unrealized losses at September 30, 2021 to be experiencing credit losses and recognized no resulting allowance for credit losses for such individually assessed credit losses. The Company does not intend to sell these investments and it is more likely than not that the Company will not be required to sell these investments before recovery of the amortized cost bases, which may be the maturity dates of the securities. The unrealized losses within each category have occurred as a result of changes in interest rates, market spreads and market conditions subsequent to purchase. Available-for-sale securities with continuous unrealized losses existing for more than twelve months were primarily corporate notes.

See Note 6—Allowance for Credit Losses for further discussion regarding any credit losses associated with held-to-maturity securities at September 30, 2021.

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The following table provides information as to the amount of gross gains and losses, adjustments and impairment on investment securities recognized in earnings and proceeds received through the sale or call of investment securities:

	Three months ended September 30,				Nine months ended September 30,
(Dollars in thousands)	2021		2020		2021		2020
Realized gains on investment securities	$	355	$	78	$	1,184	$	725
Realized losses on investment securities	(5)		(28)		(40)		(525)
Net realized gains on investment securities	350		50		1,144		200
Unrealized gains on equity securities with readily determinable fair value	1		471		2,627		2,118
Unrealized losses on equity securities with readily determinable fair value	(634)		(110)		(1,585)		(3,766)
Net unrealized (losses) gains on equity securities with readily determinable fair value	(633)		361		1,042		(1,648)
Upward adjustments of equity securities without readily determinable fair values	—		—		—		393
Downward adjustments of equity securities without readily determinable fair values	—		—		—		—
Impairment of equity securities without readily determinable fair values	(2,148)		—		(2,178)		(2,085)
Adjustment and impairment, net, of equity securities without readily determinable fair values	(2,148)		—		(2,178)		(1,692)
(Losses) gains on investment securities, net	$	(2,431)	$	411	$	8	$	(3,140)
Proceeds from sales of available-for-sale securities(1)	$	189,851	$	—	$	192,227	$	502,676
Proceeds from sales of equity securities with readily determinable fair value	3,500		2,500		9,759		6,530
Proceeds from sales and capital distributions of equity securities without readily determinable fair value	1,330		1,247		2,467		1,691

(1)Includes proceeds from available-for-sale securities sold in accordance with written covered call options sold to a third party.

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The amortized cost and fair value of available-for-sale and held-to-maturity investment securities as of September 30, 2021, December 31, 2020 and September 30, 2020, by contractual maturity, are shown in the following table. Contractual maturities may differ from actual maturities as borrowers may have the right to call or repay obligations with or without call or prepayment penalties. Mortgage-backed securities are not included in the maturity categories in the following maturity summary as actual maturities may differ from contractual maturities because the underlying mortgages may be called or prepaid without penalties:

	September 30, 2021				December 31, 2020				September 30, 2020
(Dollars in thousands)	Amortized Cost		Fair Value		Amortized Cost		Fair Value		Amortized Cost		Fair Value
Available-for-sale securities
Due in one year or less	$	45,459	$	45,549	$	343,601	$	343,846	$	338,702	$	338,954
Due in one to five years	92,457		94,134		67,901		70,334		76,843		78,843
Due in five to ten years	121,099		121,650		111,886		112,178		108,688		105,968
Due after ten years	67,608		71,660		95,672		101,441		186,718		193,339
Mortgage-backed	2,020,796		2,040,485		2,341,021		2,428,040		2,134,459		2,229,355
Total available-for-sale securities	$	2,347,419	$	2,373,478	$	2,960,081	$	3,055,839	$	2,845,410	$	2,946,459
Held-to-maturity securities
Due in one year or less	$	5,466	$	5,493	$	7,138	$	7,186	$	6,911	$	6,942
Due in one to five years	75,724		76,173		22,217		23,068		21,392		21,999
Due in five to ten years	150,908		157,282		150,621		159,293		144,468		151,175
Due after ten years	186,398		186,401		198,690		203,689		387,559		395,831
Mortgage-backed	2,318,309		2,274,131		200,531		200,531		—		—
Total held-to-maturity securities	$	2,736,805	$	2,699,480	$	579,197	$	593,767	$	560,330	$	575,947
Less: Allowance for credit losses	(83)				(59)				(63)
Held-to-maturity securities, net of allowance for credit losses	$	2,736,722			$	579,138			$	560,267

Securities having a carrying value of $2.5 billion at September 30, 2021 as well as securities having a carrying value of $2.4 billion and $3.0 billion at December 31, 2020 and September 30, 2020, respectively, were pledged as collateral for public deposits, trust deposits, Federal Home Loan Bank (“FHLB”) advances and available lines of credit, securities sold under repurchase agreements and derivatives. At September 30, 2021, there were no securities of a single issuer, other than U.S. Government-sponsored agency securities, which exceeded 10% of shareholders’ equity.

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(5) Loans

The following table shows the Company’s loan portfolio by category as of the dates shown:

	September 30,			December 31,			September 30,
(Dollars in thousands)	2021			2020			2020
Balance:
Commercial	$	11,187,972		$	11,955,967		$	12,276,999
Commercial real estate	8,885,714			8,494,132			8,423,142
Home equity	347,662			425,263			446,274
Residential real estate	1,547,736			1,259,598			1,384,810
Premium finance receivables
Commercial insurance	4,616,977			4,054,489			4,060,144
Life insurance	6,655,453			5,857,436			5,488,832
Consumer and other	22,529			32,188			55,354
Total loans, net of unearned income	$	33,264,043		$	32,079,073		$	32,135,555
Mix:
Commercial	33		%	37		%	39		%
Commercial real estate	27			26			26
Home equity	1			1			1
Residential real estate	5			5			4
Premium finance receivables
Commercial insurance	14			13			13
Life insurance	20			18			17
Consumer and other	0			0			0
Total loans, net of unearned income	100		%	100		%	100		%

The Company’s loan portfolio is generally comprised of loans to consumers and small to medium-sized businesses, which, for the commercial and commercial real estate portfolios, are located primarily within the geographic market areas that the banks serve. Various niche lending businesses, including lease finance and franchise lending, operate on a national level. Additionally, to provide short-term relief due to macroeconomic deterioration from the COVID-19 pandemic to small businesses within such market areas, the Company originated loans through the Paycheck Protection Program ("PPP"), an expansion of guaranteed lending under Section 7(a) of the Small Business Act within the CARES Act. As of September 30, 2021, the Company's commercial portfolio included approximately $1.1 billion of such PPP loans. The premium finance receivables portfolios are made to customers throughout the United States and Canada. The Company strives to maintain a loan portfolio that is diverse in terms of loan type, industry, borrower and geographic concentrations. Such diversification reduces the exposure to economic downturns that may occur in different segments of the economy or in different industries.

Certain premium finance receivables are recorded net of unearned income. The unearned income portions of such premium finance receivables were $124.0 million at September 30, 2021, $113.1 million at December 31, 2020 and $108.5 million at September 30, 2020.

Total loans, excluding PCD loans, include net deferred loan fees and costs and fair value purchase accounting adjustments totaling $13.1 million at September 30, 2021, $(3.2) million at December 31, 2020 and $(42.3) million at September 30, 2020. Net deferred fees as of September 30, 2021 includes $24.8 million of net deferred fees paid by the Small Business Administration ("SBA") for loans originated under the PPP. As PPP loans share similar characteristics (loan terms), and prepayments are considered probable and can reasonably be estimated due to terms of the program, the Company considers estimated future principal prepayments in recognizing such deferred fees for determining a constant effective yield on the portfolio of loans.

It is the policy of the Company to review each prospective credit in order to determine the appropriateness and, when required, the adequacy of security or collateral necessary to obtain when making a loan. The type of collateral, when required, will vary from liquid assets to real estate. The Company seeks to ensure access to collateral, in the event of default, through adherence to state lending laws and the Company’s credit monitoring procedures.

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(6) Allowance for Credit Losses

In accordance with ASC 326, the Company is required to measure the allowance for credit losses of financial assets with similar risk characteristics on a collective or pooled basis. In considering the segmentation of financial assets measured at amortized cost into pools, the Company considered various risk characteristics in its analysis. Generally, the segmentation utilized represents the level at which the Company develops and documents its systematic methodology to determine the allowance for credit losses for the financial assets held at amortized cost, specifically the Company's loan portfolio and debt securities classified as held-to-maturity. Below is a summary of the Company's loan portfolio segments and major debt security types:

Commercial loans, including PPP loans: The Company makes commercial loans for many purposes, including working capital lines and leasing arrangements, that are generally renewable annually and supported by business assets, personal guarantees and additional collateral. Underlying collateral includes receivables, inventory, enterprise value and the assets of the business. Commercial business lending is generally considered to involve a slightly higher degree of risk than traditional consumer bank lending. This portfolio includes a range of industries, including manufacturing, restaurants, franchise, professional services, equipment finance and leasing, mortgage warehouse lending and industrial.

The Company also originated loans through the PPP. Administered by the SBA, the PPP provided short-term relief primarily related to the disruption from COVID-19 to companies and non-profits that met the SBA’s definition of an eligible small business. Under the program, the SBA will forgive all or a portion of the loan if, during a certain period, loans are used for qualifying expenses. If all or a portion of the loan is not forgiven, the borrower is responsible for repayment. PPP loans are fully guaranteed by the SBA, including any portion not forgiven. The SBA guarantee existed at the inception of the loan and throughout its life and is not separated from the loan if the loan is subsequently sold or transferred. As it is not considered a freestanding contract, the Company considers the impact of the SBA guarantee when measuring the allowance for credit losses.

Commercial real estate loans, including construction and development, and non-construction: The Company's commercial real estate loans are generally secured by a first mortgage lien and assignment of rents on the underlying property. Since most of the Company's bank branches are located in the Chicago metropolitan area and southern Wisconsin, a significant portion of the Company's commercial real estate loan portfolio is located in this region. As the risks and circumstances of such loans in construction phase vary from that of non-construction commercial real estate loans, the Company assesses the allowance for credit losses separately for these two segments.

Home equity loans: The Company's home equity loans and lines of credit are primarily originated by each of the bank subsidiaries in their local markets where there is a strong understanding of the underlying real estate value. The Company's banks monitor and manage these loans, and conduct an automated review of all home equity loans and lines of credit at least twice per year. The bank’s subsidiaries use this information to manage loans that may be higher risk and to determine whether to obtain additional credit information or updated property valuations. In a limited number of cases, the Company may issue home equity credit together with first mortgage financing, and requests for such financing are evaluated on a combined basis.

Residential real estate loans: The Company's residential real estate portfolio includes one- to four-family fixed and adjustable rate mortgages with repricing terms generally over five years, construction loans to individuals and bridge financing loans for qualifying customers. The Company's residential mortgages relate to properties located principally in the Chicago metropolitan area and southern Wisconsin or vacation homes owned by local residents. Due to interest rate risk considerations, the Company generally sells in the secondary market loans originated with long-term fixed rates, however, certain of these loans may be retained within the banks’ own portfolios where they are non-agency conforming, or where the terms of the loans make them favorable to retain. The Company believes that since this loan portfolio consists primarily of locally originated loans, and since the majority of the borrowers are longer-term customers with lower LTV ratios, the Company faces a relatively low risk of borrower default and delinquency. It is not the Company's current practice to underwrite, and there are no plans to underwrite subprime, Alt A, no or little documentation loans, or option ARM loans.

Premium finance receivables: The Company makes loans to businesses to finance the insurance premiums they pay on their commercial insurance policies. The loans are indirectly originated by working through independent medium and large insurance agents and brokers located throughout the United States and Canada. The insurance premiums financed are primarily for commercial customers’ purchases of liability, property and casualty and other commercial insurance. This lending involves relatively rapid turnover of the loan portfolio and high volume of loan originations. The Company performs ongoing credit and other reviews of the agents and brokers to mitigate against the risk of fraud.

The Company also originates life insurance premium finance receivables. These loans are originated directly with the borrowers with assistance from life insurance carriers, independent insurance agents, financial advisors and legal counsel. The life

16

insurance policy is the primary form of collateral. In addition, these loans often are secured with a letter of credit, marketable securities or certificates of deposit. In some cases, the Company may make a loan that has a partially unsecured position.

Consumer and other loans: Included in the consumer and other loan category is a wide variety of personal and consumer loans to individuals. The Company originates consumer loans in order to provide a wider range of financial services to their customers. Consumer loans generally have shorter terms and higher interest rates than mortgage loans but generally involve more credit risk than mortgage loans due to the type and nature of the collateral.

U.S. government agency securities: This security type includes debt obligations of certain government-sponsored entities of the U.S. government such as the Federal Home Loan Bank, Federal Agricultural Mortgage Corporation, Federal Farm Credit Banks Funding Corporation and Fannie Mae. Such securities often contain an explicit or implicit guarantee of the U.S. government.

Municipal securities: The Company's municipal securities portfolio include bond issues for various municipal government entities located throughout the United States, including the Chicago metropolitan area and southern Wisconsin, some of which are privately placed and non-rated. Though the risk of loss is typically low, including within the Company, default history exists on municipal securities within the United States.

Mortgage-backed securities: This security type includes debt obligations supported by pools of individual mortgage loans and issued by certain government-sponsored entities of the U.S. government such as Freddie Mac and Fannie Mae. Such securities are considered to contain an implicit guarantee of the U.S. government.

Corporate notes: The Company's corporate notes portfolio includes bond issues for various public companies representing a diversified population of industries. The risk of loss in this portfolio is considered low based on the characteristics of the investments, including the Company’s own past history with similar investments.

In accordance with ASC 326, the Company elected to not measure an allowance for credit losses on accrued interest as such accrued interest is written off in a timely manner when deemed uncollectible. Any such write-off of accrued interest will reverse previously recognized interest income. In addition, the Company elected to not include accrued interest within presentation and disclosures of the carrying amount of financial assets held at amortized cost. This election is applicable to the various disclosures included within the Company's financial statements. Accrued interest related to financial assets held at amortized cost is included within accrued interest receivable and other assets within the Company's Consolidated Statements of Condition and totaled $119.2 million at September 30, 2021, $121.9 million at December 31, 2020, and $116.9 million at September 30, 2020.

The tables below show the aging of the Company’s loan portfolio by the segmentation noted above at September 30, 2021, December 31, 2020 and September 30, 2020:

As of September 30, 2021			90+ days and still accruing		60-89 days past due		30-59 days past due
(In thousands)	Nonaccrual								Current		Total Loans
Loan Balances (includes PCD):
Commercial
Commercial, industrial and other, excluding PPP loans	$	26,468	$	—	$	9,768	$	24,086	$	10,045,662	$	10,105,984
Commercial PPP loans	—		—		—		1,138		1,080,850		1,081,988
Commercial real estate
Construction and development	1,030		—		—		12,631		1,330,054		1,343,715
Non-construction	22,676		—		5,395		67,187		7,446,741		7,541,999
Home equity	3,449		164		340		867		342,842		347,662
Residential real estate	22,633		—		1,540		1,076		1,522,487		1,547,736
Premium finance receivables
Commercial insurance loans	7,300		5,811		10,642		14,614		4,578,610		4,616,977
Life insurance loans	—		—		5,162		7,040		6,643,251		6,655,453
Consumer and other	384		126		16		125		21,878		22,529
Total loans, net of unearned income	$	83,940	$	6,101	$	32,863	$	128,764	$	33,012,375	$	33,264,043

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As of December 31, 2020			90+ days and still accruing		60-89 days past due		30-59 days past due
(In thousands)	Nonaccrual								Current		Total Loans
Loan Balances (includes PCD):
Commercial
Commercial, industrial and other, excluding PPP loans	$	21,743	$	307	$	6,900	$	44,345	$	9,166,751	$	9,240,046
Commercial PPP loans	—		—		—		36		2,715,885		2,715,921
Commercial real estate
Construction and development	5,633		—		—		5,344		1,360,825		1,371,802
Non-construction	40,474		—		5,178		26,772		7,049,906		7,122,330
Home equity	6,529		—		47		637		418,050		425,263
Residential real estate	26,071		—		1,635		12,584		1,219,308		1,259,598
Premium finance receivables
Commercial insurance loans	13,264		12,792		6,798		18,809		4,002,826		4,054,489
Life insurance loans	—		—		21,003		30,465		5,805,968		5,857,436
Consumer and other	436		264		24		136		31,328		32,188
Total loans, net of unearned income	$	114,150	$	13,363	$	41,585	$	139,128	$	31,770,847	$	32,079,073

As of September 30, 2020			90+ days and still accruing		60-89 days past due		30-59 days past due
(In thousands)	Nonaccrual								Current		Total Loans
Loan Balances (includes PCD):
Commercial
Commercial, industrial and other, excluding PPP loans	$	42,036	$	—	$	2,168	$	48,271	$	8,805,511	$	8,897,986
Commercial PPP loans	—		—		—		—		3,379,013		3,379,013
Commercial real estate
Construction and development	10,980		—		—		12,150		1,310,019		1,333,149
Non-construction	57,835		—		8,299		41,312		6,982,547		7,089,993
Home equity	6,329		—		70		1,148		438,727		446,274
Residential real estate	22,069		—		814		2,443		1,359,484		1,384,810
Premium finance receivables
Commercial insurance loans	21,080		12,177		7,495		18,839		4,000,553		4,060,144
Life insurance loans	—		—		30,791		61,893		5,396,148		5,488,832
Consumer and other	422		175		273		493		53,991		55,354
Total loans, net of unearned income	$	160,751	$	12,352	$	49,910	$	186,549	$	31,725,993	$	32,135,555

Credit Quality Indicators

Credit quality indicators, specifically the Company's internal risk rating systems, reflect how the Company monitors credit losses and represents factors used by the Company when measuring the allowance for credit losses. The following discusses the Company's credit quality indicators by financial asset.

Loan portfolios

The Company's ability to manage credit risk depends in large part on our ability to properly identify and manage problem loans. To do so, the Company operates a credit risk rating system under which credit management personnel assign a credit risk rating (1 to 10 rating) to each loan at the time of origination and review loans on a regular basis. These credit risk ratings are also an important aspect of the Company's allowance for credit losses measurement methodology. The credit risk rating structure and classifications are shown below:

Pass (risk rating 1 to 5): Based on various factors (liquidity, leverage, etc.), the Company believes asset quality is acceptable and is deemed to not require additional monitoring by the Company.

Special mention (risk rating 6): Assets in this category are currently protected, potentially weak, but not to the point of substandard classification. Loss potential is moderate if corrective action is not taken.

Substandard accrual (risk rating 7): Assets in this category have well defined weaknesses that jeopardize the liquidation of the debt. Loss potential is distinct but with no discernible impairment.

Substandard nonaccrual/doubtful (risk rating 8 and 9): Assets have all the weaknesses in those classified “substandard accrual” with the added characteristic that the weaknesses make collection or liquidation in full, on the basis of current existing facts, conditions, and values, improbable.

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Loss/fully charged-off (risk rating 10): Assets in this category are considered fully uncollectible. As such, these assets have no carrying balance on the Company's Consolidated Statements of Condition.

Each loan officer is responsible for monitoring his or her loan portfolio, recommending a credit risk rating for each loan in his or her portfolio and ensuring the credit risk ratings are appropriate. These credit risk ratings are then ratified by the bank’s chief credit officer and/or concurrence credit officer. Credit risk ratings are determined by evaluating a number of factors including: a borrower’s financial strength, cash flow coverage, collateral protection and guarantees.

The Company’s Problem Loan Reporting system includes all loans with credit risk ratings of 6 through 9. This system is designed to provide an on-going detailed tracking mechanism for each problem loan. Once management determines that a loan has deteriorated to a point where it has a credit risk rating of 6 or worse, the Company’s Managed Asset Division performs an overall credit and collateral review. As part of this review, all underlying collateral is identified and the valuation methodology is analyzed and tracked. As a result of this initial review by the Company’s Managed Asset Division, the credit risk rating is reviewed and a portion of the outstanding loan balance may be deemed uncollectible and, as a result, no longer share similar risk characteristics as its related pool. If that is the case, the individual loan is considered collateral dependent and individually assessed for an allowance for credit loss. The Company’s individual assessment utilizes an independent re-appraisal of the collateral (unless such a third-party evaluation is not possible due to the unique nature of the collateral, such as a closely-held business or thinly traded securities). In the case of commercial real estate collateral, an independent third party appraisal is ordered by the Company’s Real Estate Services Group to determine if there has been any change in the underlying collateral value. These independent appraisals are reviewed by the Real Estate Services Group and sometimes by independent third party valuation experts and may be adjusted depending upon market conditions.

Through the credit risk rating process, loans are reviewed to determine if they are performing in accordance with the original contractual terms. If the borrower has failed to comply with the original contractual terms, further action may be required by the Company, including a downgrade in the credit risk rating, movement to non-accrual status or a charge-off. If the Company determines that a loan amount or portion thereof is uncollectible, the loan’s credit risk rating is immediately downgraded to an 8 or 9 and the uncollectible amount is charged-off. Any loan that has a partial charge-off continues to be assigned a credit risk rating of an 8 or 9 for the duration of time that a balance remains outstanding. The Company undertakes a thorough and ongoing analysis to determine if additional impairment and/or charge-offs are appropriate and to begin a workout plan for the credit to minimize actual losses. In determining the appropriate charge-off for collateral-dependent loans, the Company considers the results of appraisals for the associated collateral.

The table below shows the Company’s loan portfolio by credit quality indicator and year of origination at September 30, 2021:

As of September 30, 2021	Year of Origination														Revolving		Total
(In thousands)	2021		2020		2019		2018		2017		Prior		Revolving		to Term		Loans
Loan Balances:
Commercial, industrial and other
Pass	$	1,876,457	$	1,567,410	$	1,005,156	$	711,177	$	481,140	$	620,202	$	3,301,541	$	10,236	$	9,573,319
Special mention	18,468		52,692		67,528		42,470		31,785		22,358		106,454		5,841		347,596
Substandard accrual	17,805		5,246		21,901		33,886		8,712		41,590		28,641		820		158,601
Substandard nonaccrual/doubtful	5,227		3,803		5,008		4,206		2,189		5,503		532		—		26,468
Total commercial, industrial and other	$	1,917,957	$	1,629,151	$	1,099,593	$	791,739	$	523,826	$	689,653	$	3,437,168	$	16,897	$	10,105,984
Commercial PPP
Pass	$	909,139	$	171,213	$	—	$	—	$	—	$	—	$	—	$	—	$	1,080,352
Special mention	—		1,356		—		—		—		—		—		—		1,356
Substandard accrual	—		280		—		—		—		—		—		—		280
Substandard nonaccrual/doubtful	—		—		—		—		—		—		—		—		—
Total commercial PPP	$	909,139	$	172,849	$	—	$	—	$	—	$	—	$	—	$	—	$	1,081,988
Construction and development
Pass	$	214,644	$	403,619	$	326,654	$	131,600	$	79,752	$	88,452	$	24,382	$	2,688	$	1,271,791
Special mention	282		8,475		12,144		17,685		23,435		3,234		—		—		65,255
Substandard accrual	—		—		316		2,558		2,132		478		155		—		5,639
Substandard nonaccrual/doubtful	—		—		—		—		—		1,030		—		—		1,030
Total construction and development	$	214,926	$	412,094	$	339,114	$	151,843	$	105,319	$	93,194	$	24,537	$	2,688	$	1,343,715
Non-construction
Pass	$	1,039,349	$	1,215,988	$	997,258	$	796,708	$	752,951	$	2,053,618	$	185,418	$	4,979	$	7,046,269
Special mention	3,517		10,307		51,203		61,392		44,193		155,150		—		—		325,762
Substandard accrual	—		1,960		33,544		20,725		21,345		69,718		—		—		147,292

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Substandard nonaccrual/doubtful	—		—		—		112		169		22,395		—		—		22,676
Total non-construction	$	1,042,866	$	1,228,255	$	1,082,005	$	878,937	$	818,658	$	2,300,881	$	185,418	$	4,979	$	7,541,999
Home equity
Pass	$	8	$	—	$	—	$	—	$	28	$	7,050	$	319,725	$	—	$	326,811
Special mention	—		—		—		—		—		614		5,355		242		6,211
Substandard accrual	—		—		—		184		67		9,341		949		650		11,191
Substandard nonaccrual/doubtful	—		—		—		47		81		2,794		527		—		3,449
Total home equity	$	8	$	—	$	—	$	231	$	176	$	19,799	$	326,556	$	892	$	347,662
Residential real estate
Pass	$	672,993	$	299,739	$	193,715	$	79,703	$	87,361	$	162,230	$	—	$	—	$	1,495,741
Special mention	884		269		459		2,123		1,848		8,331		—		—		13,914
Substandard accrual	1,129		2,234		731		887		2,033		8,434		—		—		15,448
Substandard nonaccrual/doubtful	—		994		1,554		859		4,807		14,419		—		—		22,633
Total residential real estate	$	675,006	$	303,236	$	196,459	$	83,572	$	96,049	$	193,414	$	—	$	—	$	1,547,736
Premium finance receivables - commercial
Pass	$	4,453,036	$	106,802	$	13,179	$	1,429	$	49	$	—	$	—	$	—	$	4,574,495
Special mention	31,671		1,693		9		—		1		—		—		—		33,374
Substandard accrual	1,153		608		2		45		—		—		—		—		1,808
Substandard nonaccrual/doubtful	4,620		2,601		67		12		—		—		—		—		7,300
Total premium finance receivables - commercial	$	4,490,480	$	111,704	$	13,257	$	1,486	$	50	$	—	$	—	$	—	$	4,616,977
Premium finance receivables - life
Pass	$	340,318	$	782,936	$	734,280	$	673,416	$	699,250	$	3,424,672	$	—	$	—	$	6,654,872
Special mention	—		—		—		—		581		—		—		—		581
Substandard accrual	—		—		—		—		—		—		—		—		—
Substandard nonaccrual/doubtful	—		—		—		—		—		—		—		—		—
Total premium finance receivables - life	$	340,318	$	782,936	$	734,280	$	673,416	$	699,831	$	3,424,672	$	—	$	—	$	6,655,453
Consumer and other
Pass	$	2,769	$	1,120	$	1,254	$	1,230	$	84	$	4,595	$	10,647	$	—	$	21,699
Special mention	—		4		17		—		80		82		6		—		189
Substandard accrual	—		3		1		—		—		250		3		—		257
Substandard nonaccrual/doubtful	—		4		—		100		—		280		—		—		384
Total consumer and other	$	2,769	$	1,131	$	1,272	$	1,330	$	164	$	5,207	$	10,656	$	—	$	22,529
Total loans (1)
Pass	$	9,508,713	$	4,548,827	$	3,271,496	$	2,395,263	$	2,100,615	$	6,360,819	$	3,841,713	$	17,903	$	32,045,349
Special mention	54,822		74,796		131,360		123,670		101,923		189,769		111,815		6,083		794,238
Substandard accrual	20,087		10,331		56,495		58,285		34,289		129,811		29,748		1,470		340,516
Substandard nonaccrual/doubtful	9,847		7,402		6,629		5,336		7,246		46,421		1,059		—		83,940
Total loans	$	9,593,469	$	4,641,356	$	3,465,980	$	2,582,554	$	2,244,073	$	6,726,820	$	3,984,335	$	25,456	$	33,264,043

(1)Includes $37.5 million of loans with COVID-19 related modifications that migrated from pass as of March 1, 2020 to special mention or substandard accrual as of September 30, 2021. These loans were further qualitatively evaluated as a part of the measurement of the allowance for credit losses as of September 30, 2021.

Held-to-maturity debt securities

The Company conducts an assessment of its investment securities, including those classified as held-to-maturity, at the time of purchase and on at least an annual basis to ensure such investment securities remain within appropriate levels of risk and continue to perform satisfactorily in fulfilling its obligations. The Company considers, among other factors, the nature of the securities and credit ratings or financial condition of the issuer. If available, the Company obtains a credit rating for issuers from a Nationally Recognized Statistical Rating Organization (“NRSRO”) for consideration. If no such rating is available for an issuer, the Company performs an internal rating based on the scale utilized within the loan portfolio as discussed above. For purposes of the table below, the Company has converted any issuer rating from an NRSRO into the Company’s internal ratings based on Investment Policy and review by the Company’s management.

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As of September 30, 2021	Year of Origination												Total
(In thousands)	2021		2020		2019		2018		2017		Prior		Balance
Amortized Cost Balances:
U.S. government agencies
1-4 internal grade	$	97,790	$	25,000	$	—	$	50,000	$	—	$	3,353	$	176,143
5-7 internal grade	—		—		—		—		—		—		—
8-10 internal grade	—		—		—		—		—		—		—
Total U.S. government agencies	$	97,790	$	25,000	$	—	$	50,000	$	—	$	3,353	$	176,143
Municipal
1-4 internal grade	$	1,371	$	—	$	161	$	7,508	$	43,358	$	138,264	$	190,662
5-7 internal grade	—		—		—		—		—		—		—
8-10 internal grade	—		—		—		—		—		—		—
Total municipal	$	1,371	$	—	$	161	$	7,508	$	43,358	$	138,264	$	190,662
Mortgage-backed securities
1-4 internal grade	$	2,318,309	$	—	$	—	$	—	$	—	$	—	$	2,318,309
5-7 internal grade	—		—		—		—		—		—		—
8-10 internal grade	—		—		—		—		—		—		—
Total mortgage-backed securities	$	2,318,309	$	—	$	—	$	—	$	—	$	—	$	2,318,309
Corporate notes
1-4 internal grade	$	—	$	13,578	$	7,419	$	3,285	$	3,237	$	24,172	$	51,691
5-7 internal grade	—		—		—		—		—		—		—
8-10 internal grade	—		—		—		—		—		—		—
Total corporate notes	$	—	$	13,578	$	7,419	$	3,285	$	3,237	$	24,172	$	51,691
Total held-to-maturity securities													$	2,736,805
Less: Allowance for credit losses													(83)
Held-to-maturity securities, net of allowance for credit losses													$	2,736,722

Measurement of Allowance for Credit Losses

The Company's allowance for credit losses consists of the allowance for loan losses, the allowance for unfunded commitment losses and the allowance for held-to-maturity debt security losses. In accordance with ASC 326, the Company measures the allowance for credit losses at the time of origination or purchase of a financial asset, representing an estimate of lifetime expected credit losses on the related asset. When developing its estimate, the Company considers available information relevant to assessing the collectability of cash flows, from both internal and external sources. Historical credit loss experience is one input in the estimation process as well as inputs relevant to current conditions and reasonable and supportable forecasts. In considering past events, the Company considers the relevance, or lack thereof, of historical information due to changes in such things as financial asset underwriting or collection practices, and changes in portfolio mix due to changing business plans and strategies. In considering current conditions and forecasts, the Company considers both the current economic environment and the forecasted direction of the economic environment with emphasis on those factors deemed relevant to or driving changes in expected credit losses. As significant judgment is required, the review of the appropriateness of the allowance for credit losses is performed quarterly by various committees with participation by the Company's executive management.

	September 30,		December 31,		September 30,
(In thousands)	2021		2020		2020
Allowance for loan losses	$	248,612	$	319,374	$	325,959
Allowance for unfunded lending-related commitments losses	47,443		60,536		62,949
Allowance for loan losses and unfunded lending-related commitments losses	296,055		379,910		388,908
Allowance for held-to-maturity securities losses	83		59		63
Allowance for credit losses	$	296,138	$	379,969	$	388,971

The allowance for credit losses is measured on a collective or pooled basis when similar risk characteristics exist, based upon the segmentation discussed above. The Company utilizes modeling methodologies that estimate lifetime credit loss rates on each pool, including methodologies estimating the probability of default and loss given default on specific segments. Historical credit loss history is adjusted for reasonable and supportable forecasts developed by the Company on a quantitative or qualitative basis and incorporates third party economic forecasts. Reasonable and supportable forecasts consider the macroeconomic factors that are most relevant to evaluating and predicting expected credit losses in the Company's financial assets. Currently, the Company utilizes an eight quarter forecast period using a single macroeconomic scenario provided by a

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third party and reviewed within the Company's governance structure. For periods beyond the ability to develop reasonable and supportable forecasts, the Company reverts to historical loss rates at an input level, straight-line over a four quarter reversion period. Expected credit losses are measured over the contractual term of the financial asset with consideration of expected prepayments. Expected extensions, renewals or modifications of the financial asset are only considered when either 1) the expected extension, renewal or modification is contained within the existing agreement and is not unconditionally cancelable, or 2) the expected extension, renewal or modification is reasonably expected to result in a TDR. The methodologies discussed above are applied to both current asset balances on the Company's Consolidated Statements of Condition and off-balance sheet commitments (i.e. unfunded lending-related commitments).

Assets that do not share similar risk characteristics with a pool are assessed for the allowance for credit losses on an individual basis. These typically include assets experiencing financial difficulties, including assets rated as substandard nonaccrual and doubtful as well as assets currently classified or expected to be classified as TDRs. If foreclosure is probable or the asset is considered collateral-dependent, expected credit losses are measured based upon the fair value of the underlying collateral adjusted for selling costs, if appropriate. Underlying collateral across the Company's segments consist primarily of real estate, land and construction assets as well as general business assets of the borrower. As of September 30, 2021, excluding loans carried at fair value, substandard nonaccrual loans totaling $47.3 million in carrying balance had no related allowance for credit losses. For certain accruing current and expected TDRs, expected credit losses are measured based upon the present value of future cash flows of the modified asset terms compared to the amortized cost of the asset. Considering accounting relief provided under Section 4013 of the CARES Act, loans identified as being reasonably expected to be modified into TDRs in the future totaled $335,000 as of September 30, 2021.

The Company does not measure an allowance for credit losses on accrued interest receivable balances because these balances are written off in a timely manner as a reduction to interest income when assets are placed on nonaccrual status.

Loan portfolios

A summary of activity in the allowance for credit losses, specifically for the loan portfolio (i.e. allowance for loan losses and allowance for unfunded commitment losses), for the three and nine months ended September 30, 2021 and 2020 is as follows.

Three months ended September 30, 2021			Commercial Real Estate		Home  Equity		Residential Real Estate		Premium Finance Receivables		Consumer and Other		Total Loans
(In thousands)	Commercial
Allowance for credit losses at beginning of period	$	98,507	$	158,522	$	11,207	$	15,684	$	19,899	$	212	$	304,031
Other adjustments			—		—		—		(65)		—		(65)
Charge-offs	(1,352)		(406)		(59)		(10)		(1,390)		(112)		(3,329)
Recoveries	816		373		313		5		1,728		92		3,327
Provision for credit losses	11,811		(18,454)		(522)		593		(1,597)		260		(7,909)
Allowance for credit losses at period end	$	109,782	$	140,035	$	10,939	$	16,272	$	18,575	$	452	$	296,055
Individually measured	$	8,222	$	1,308	$	221	$	940	$	—	$	68	$	10,759
Collectively measured	101,560		138,727		10,718		15,332		18,575		384		285,296
Loans at period end
Individually measured	$	31,001	$	32,091	$	16,486	$	28,966	$	—	$	467	$	109,011
Collectively measured	11,156,971		8,853,623		331,176		1,487,791		11,272,430		22,062		33,124,053
Loans held at fair value	—		—		—		30,979		—		—		30,979

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Three months ended September 30, 2020	Commercial		Commercial Real Estate		Home  Equity		Residential Real Estate		Premium Finance Receivables		Consumer and Other		Total Loans
(In thousands)
Allowance for credit losses at beginning of period	$	133,597	$	197,126	$	12,189	$	11,915	$	17,592	$	690	$	373,109
Other adjustments	—		—		—		—		55		—		55
Charge-offs	(5,270)		(1,529)		(138)		(83)		(4,640)		(103)		(11,763)
Recoveries	428		175		111		25		1,720		20		2,479
Provision for credit losses	(15,861)		38,238		(485)		(67)		3,129		74		25,028
Allowance for credit losses at period end	$	112,894	$	234,010	$	11,677	$	11,790	$	17,856	$	681	$	388,908
Individually measured	$	10,642	$	4,741	$	196	$	680	$	—	$	108	$	16,367
Collectively measured	102,252		229,269		11,481		11,110		17,856		573		372,541
Loans at period end
Individually measured	$	49,900	$	79,661	$	22,962	$	30,596	$	—	$	548	$	183,667
Collectively measured	12,227,099		8,343,481		423,312		1,100,699		9,548,976		54,806		31,698,373
Loans held at fair value	—		—		—		253,515		—		—		253,515

Nine months ended September 30, 2021			Commercial Real Estate		Home  Equity		Residential Real Estate		Premium Finance Receivables		Consumer and Other		Total Loans
(In thousands)	Commercial
Allowance for credit losses at beginning of period	$	94,212	$	243,603	$	11,437	$	12,459	$	17,777	$	422	$	379,910
Other adjustments	—		—		—		—		(2)		—		(2)
Charge-offs	(16,370)		(2,798)		(201)		(15)		(6,706)		(330)		(26,420)
Recoveries	2,170		1,087		742		245		6,749		158		11,151
Provision for credit losses	29,770		(101,857)		(1,039)		3,583		757		202		(68,584)
Allowance for credit losses at period end	$	109,782	$	140,035	$	10,939	$	16,272	$	18,575	$	452	$	296,055

Nine months ended September 30, 2020			Commercial Real Estate		Home  Equity		Residential Real Estate		Premium Finance Receivables		Consumer and Other		Total Loans
(In thousands)	Commercial
Allowance for credit losses at beginning of period	$	64,920	$	68,511	$	3,878	$	9,800	$	9,647	$	1,705	$	158,461
Cumulative effect adjustment from the adoption of ASU 2016-13	9,039		32,064		9,061		3,002		(4,959)		(863)		47,344
Other adjustments	—		—		—		—		24		—		24
Charge-offs	(13,109)		(9,323)		(1,378)		(777)		(11,258)		(330)		(36,175)
Recoveries	924		931		451		115		3,663		119		6,203
Provision for credit losses	51,120		141,827		(335)		(350)		20,739		50		213,051
Allowance for credit losses at period end	$	112,894	$	234,010	$	11,677	$	11,790	$	17,856	$	681	$	388,908

At January 1, 2020, the Company adopted ASU 2016-13, which replaced the previous incurred loss methodology for measuring the allowance for credit losses with a lifetime expected loss methodology. At adoption, the allowance for credit losses related to loans and lending agreements increased approximately $47.3 million, including an increase of approximately $33.2 million recorded to the allowance for unfunded commitment losses within accrued interest and other liabilities on the Company's Consolidated Statements of Condition, with an offsetting amount recorded directly to retained earnings, net of taxes. The remaining $14.2 million cumulative effect adjustment was recorded to the allowance for loan losses, presented separately on the Company's Consolidated Statements of Condition. Of the amount recorded to the allowance for loan losses, $11.0 million related to PCD loans with such offsetting amount added directly to the carrying balance of the loans and the remaining $3.2 million not related to PCD loans recorded directly to retained earnings, net of taxes, on the Company's Consolidated Statements of Condition.

For the three and nine month periods ended September 30, 2021, the Company recognized approximately $(7.9) million and $(68.6) million of provision for credit losses, respectively, related to loans and lending agreements. The negative provision for such periods was primarily the result of improvements in the forecasted macroeconomic forecast, specifically the Company's macroeconomic forecasts of key model inputs (most notably, Commercial Real Estate Price Index and Baa corporate credit spreads) as well as improvements in characteristics of the Company's loan portfolios. While uncertainties remain regarding expected economic performance, macroeconomic forecasts as of September 30, 2021 assume that the impact of those uncertainties is less severe compared to that assumed at December 31, 2020. Other key drivers of provision for credit losses in

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these portfolios include, but are not limited to, decreases to COVID-19 related loan modifications and positive loan risk rating migration. Net charge-offs in the three and nine month periods ending September 30, 2021, totaled $2,000 and $15.3 million.

Held-to-maturity debt securities

At January 1, 2020, the Company established an allowance for credit losses on its held-to-maturity debt securities totaling approximately $74,000, which is presented as a reduction to the amortized cost basis of held-to-maturity securities on the Company's Consolidated Statements of Condition. Such adjustment was recorded directly to the Company's retained earnings, net of taxes. For the three and nine month periods ended September 30, 2021, the Company recognized approximately $(7,000) and $22,000 of provision for credit losses related to held-to-maturity securities, respectively.

TDRs

At September 30, 2021, the Company had $48.5 million in loans modified in TDRs. The $48.5 million in TDRs represents 254 credits in which economic concessions were granted to certain borrowers to better align the terms of their loans with their current ability to pay.

The Company’s approach to restructuring loans is built on its credit risk rating system, which requires credit management personnel to assign a credit risk rating to each loan. In each case, the loan officer is responsible for recommending a credit risk rating for each loan and ensuring the credit risk ratings are appropriate. These credit risk ratings are then reviewed and approved by the bank’s chief credit officer and/or concurrence credit officer. Credit risk ratings are determined by evaluating a number of factors, including a borrower’s financial strength, cash flow coverage, collateral protection and guarantees. The Company’s credit risk rating scale is one through ten with higher scores indicating higher risk. In the case of loans rated six or worse following modification, the Company’s Managed Assets Division evaluates the loan and the credit risk rating and determines that the loan has been restructured to be reasonably assured of repayment and of performance according to the modified terms and is supported by a current, well-documented credit assessment of the borrower’s financial condition and prospects for repayment under the revised terms.

A modification of a loan with an existing credit risk rating of 6 or worse or a modification of any other credit, which will result in a restructured credit risk rating of 6 or worse must be reviewed for possible TDR classification. In that event, the Company’s Managed Assets Division conducts an overall credit and collateral review. A modification of a loan is considered to be a TDR if both (1) the borrower is experiencing financial difficulty and (2) for economic or legal reasons, the bank grants a concession to a borrower that it would not otherwise consider. The modification of a loan where the credit risk rating is 5 or better after such modification is not considered to be a TDR. Based on the Company’s credit risk rating system, it considers that borrowers whose credit risk rating is 5 or better are not experiencing financial difficulties and therefore, are not considered TDRs.

All credits determined to be a TDR will continue to be classified as a TDR in all subsequent periods, unless the borrower has been in compliance with the loan’s modified terms for a period of six months (including over a calendar year-end) and the current interest rate represents a market rate at the time of restructuring. The Managed Assets Division, in consultation with the respective loan officer, determines whether the modified interest rate represented a current market rate at the time of restructuring. Using knowledge of current market conditions and rates, competitive pricing on recent loan originations, and an assessment of various characteristics of the modified loan (including collateral position and payment history), an appropriate market rate for a new borrower with similar risk is determined. If the modified interest rate meets or exceeds this market rate for a new borrower with similar risk, the modified interest rate represents a market rate at the time of restructuring. Additionally, before removing a loan from TDR classification, a review of the current or previously measured impairment on the loan and any concerns related to future performance by the borrower is conducted. If concerns exist about the future ability of the borrower to meet its obligations under the loans based on a credit review by the Managed Assets Division, the TDR classification is not removed from the loan.

TDRs are individually assessed at the time of the modification and on a quarterly basis to measure an allowance for credit loss. The carrying amount of the loan is compared to the expected payments to be received, discounted at the loan's original rate, or for collateral dependent loans, to the fair value of the collateral. Any shortfall is recorded as a reserve. Each TDR was individually assessed at September 30, 2021 and approximately $2.3 million of reserve was present and appropriately reserved for through the Company’s reserving methodology in the Company’s allowance for credit losses.

TDRs may arise when, due to financial difficulties experienced by the borrower, the Company obtains through physical possession one or more collateral assets in satisfaction of all or part of an existing credit. Once possession is obtained, the Company reclassifies the appropriate portion of the remaining balance of the credit from loans to OREO, which is included within other assets in the Consolidated Statements of Condition. For any residential real estate property collateralizing a

24

consumer mortgage loan, the Company is considered to possess the related collateral only if legal title is obtained upon completion of foreclosure, or the borrower conveys all interest in the residential real estate property to the Company through completion of a deed in lieu of foreclosure or similar legal agreement. At September 30, 2021, the Company had $2.5 million of foreclosed residential real estate properties included within OREO. Furthermore, the recorded investment in residential mortgage loans secured by residential real estate properties for which foreclosure proceedings are in process totaled $14.3 million and $17.7 million at September 30, 2021 and 2020, respectively.

The tables below present a summary of the post-modification balance of loans restructured during the three and nine months ended September 30, 2021 and 2020, respectively, which represent TDRs:

Three months ended September 30, 2021 (Dollars in thousands)	Total (1)(2)			Extension at Below Market Terms (2)			Reduction of Interest Rate (2)			Modification to  Interest-only Payments (2)			Forgiveness of Debt(2)
	Count	Balance		Count	Balance		Count	Balance		Count	Balance		Count	Balance
Commercial
Commercial, industrial and other	1	$	1	1	$	1	—	$	—	—	$	—	—	$	—
Commercial real estate
Non-construction	—	—		—	—		—	—		—	—		—	—
Residential real estate and other	8	558		7	441		2	202		—	—		—	—
Total loans	9	$	559	8	$	442	2	$	202	—	$	—	—	$	—

Three months ended September 30, 2020 (Dollars in thousands)	Total (1)(2)			Extension at Below Market Terms (2)			Reduction of Interest Rate (2)			Modification to  Interest-only Payments (2)			Forgiveness of Debt(2)
	Count	Balance		Count	Balance		Count	Balance		Count	Balance		Count	Balance
Commercial
Commercial, industrial and other	5	$	1,013	5	$	1,013	—	$	—	—	$	—	—	$	—
Commercial real estate
Non-construction	3	1,045		3	1,045		—	—		1	207		—	—
Residential real estate and other	28	5,538		21	5,281		13	1,829		1	190		—	—
Total loans	36	$	7,596	29	$	7,339	13	$	1,829	2	$	397	—	$	—

(1)TDRs may have more than one modification representing a concession. As such, TDRs during the period may be represented in more than one of the categories noted above.

(2)Balances represent the recorded investment in the loan at the time of the restructuring.

During the three months ended September 30, 2021, nine loans totaling $559,000 were determined to be TDRs, compared to 36 loans totaling $7.6 million during the three months ended September 30, 2020. Of these loans extended at below market terms, the weighted average extension had a term of approximately 105 months during the quarter ended September 30, 2021 compared to 26 months for the quarter ended September 30, 2020. Further, the weighted average decrease in the stated interest rate for loans with a reduction of interest rate during the period was approximately 129 basis points and 116 basis points during the three months ended September 30, 2021 and 2020, respectively. Interest-only payment terms were approximately five months during the three months ended September 30, 2020. Additionally, no principal balances were forgiven during the quarters ended September 30, 2021 and 2020.

Nine months ended September 30, 2021 (Dollars in thousands)	Total (1)(2)			Extension at Below Market Terms (2)			Reduction of Interest Rate (2)			Modification to  Interest-only Payments (2)			Forgiveness of Debt(2)
	Count	Balance		Count	Balance		Count	Balance		Count	Balance		Count	Balance
Commercial
Commercial, industrial and other	6	$	547	6	$	547	—	$	—	—	$	—	—	$	—
Commercial real estate
Non-construction	5	2,944		4	2,401		2	656		1	113		—	—
Residential real estate and other	34	3,393		33	3,276		13	2,108		—	—		—	—
Total loans	45	$	6,884	43	$	6,224	15	$	2,764	1	$	113	—	$	—

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Nine months ended September 30, 2020 (Dollars in thousands)	Total (1)(2)			Extension at Below Market Terms (2)			Reduction of Interest Rate (2)			Modification to  Interest-only Payments (2)			Forgiveness of Debt(2)
	Count	Balance		Count	Balance		Count	Balance		Count	Balance		Count	Balance
Commercial
Commercial, industrial and other	17	$	10,046	13	$	5,772	—	$	—	4	$	3,257	1	$	432
Commercial real estate
Non-construction	17	19,180		14	14,556		3	921		7	5,752		—	—
Residential real estate and other	69	11,184		54	10,676		28	4,205		1	190		—	—
Total loans	103	$	40,410	81	$	31,004	31	$	5,126	12	$	9,199	1	$	432

(1)TDRs may have more than one modification representing a concession. As such, TDRs during the period may be represented in more than one of the categories noted above.

(2)Balances represent the recorded investment in the loan at the time of the restructuring.

During the nine months ended September 30, 2021, 45 loans totaling $6.9 million were determined to be TDRs, compared to 103 loans totaling $40.4 million during the nine months ended September 30, 2020. Of these loans extended at below market terms, the weighted average extension had a term of approximately 108 months during the nine months ended September 30, 2021 compared to 14 months for the nine months ended September 30, 2020. Further, the weighted average decrease in the stated interest rate for loans with a reduction of interest rate during the period was approximately 151 basis points and 143 basis points for the year-to-date periods ended September 30, 2021 and 2020, respectively. Interest-only payment terms were approximately six months and 13 months during the nine months ended September 30, 2021 and 2020, respectively. Additionally, no balances were forgiven in the first nine months of 2021 compared to $453,000 of principal balances were forgiven in the same period of 2020.

The following table presents a summary of all loans restructured in TDRs during the twelve months ended September 30, 2021 and 2020, and such loans that were in payment default under the restructured terms during the respective periods below:

(Dollars in thousands)	As of September 30, 2021			Three Months Ended September 30, 2021			Nine months ended September 30, 2021
	Total (1)(3)			Payments in Default  (2)(3)			Payments in Default  (2)(3)
	Count	Balance		Count	Balance		Count	Balance
Commercial
Commercial, industrial and other	10	$	2,863	1	$	199	4	$	1,524
Commercial real estate
Non-construction	6	3,045		3	2,275		3	2,275
Residential real estate and other	50	6,437		2	116		2	116
Total loans	66	$	12,345	6	$	2,590	9	$	3,915

(Dollars in thousands)	As of September 30, 2020			Three Months Ended September 30, 2020			Nine months ended September 30, 2020
	Total (1)(3)			Payments in Default  (2)(3)			Payments in Default  (2)(3)
	Count	Balance		Count	Balance		Count	Balance
Commercial
Commercial, industrial and other	22	$	11,476	7	$	4,607	7	$	4,607
Commercial real estate
Non-construction	18	19,432		13	14,595		13	14,595
Residential real estate and other	112	16,265		11	2,131		14	2,582
Total loans	152	$	47,173	31	$	21,333	34	$	21,784

(1)Total TDRs represent all loans restructured in TDRs during the previous twelve months from the date indicated.

(2)TDRs considered to be in payment default are over 30 days past due subsequent to the restructuring.

(3)Balances represent the recorded investment in the loan at the time of the restructuring.

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(7) Goodwill and Other Intangible Assets

A summary of the Company’s goodwill assets by reporting unit is presented in the following table:

(In thousands)	December 31, 2020		Goodwill Acquired		Impairment Loss		Goodwill Adjustments		September 30, 2021
Community banking	$	536,396	$	—	$	—	$	—	$	536,396
Specialty finance	39,938		—		—		85		40,023
Wealth management	69,373		—		—		—		69,373
Total	$	645,707	$	—	$	—	$	85	$	645,792

The specialty finance unit’s goodwill increased $85,000 in the first nine months of 2021 as a result of foreign currency translation adjustments related to the Canadian acquisitions.

The Company assesses each reporting unit’s goodwill for impairment on at least an annual basis and considers potential indicators of impairment at each reporting date between annual goodwill impairment tests. At October 1, 2020, the Company utilized a quantitative approach for its annual goodwill impairment tests of the banking, specialty finance and wealth management reporting units and determined that no impairment existed at that time.

At each reporting date between annual goodwill impairment tests, the Company considers potential indicators of impairment. Given the current and prior economic uncertainty and volatility surrounding COVID-19, the Company assessed whether such events and circumstances resulted in it being more likely than not that the fair value of any reporting unit was less than its carrying value. Potential impairment indicators considered include the condition of the economy and banking industry; government intervention and regulatory updates; the impact of recent events to financial performance and cost factors of the reporting units; performance of the Company’s stock and other relevant events.

At the conclusion of this assessment of all reporting units, the Company determined that as of September 30, 2021, it was more likely than not that the fair value of all reporting units exceeded the respective carrying value of such reporting unit.

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A summary of intangible assets as of the dates shown and the expected amortization of finite-lived intangible assets as of September 30, 2021 is as follows:

(In thousands)	September 30, 2021		December 31, 2020		September 30, 2020
Community banking segment:
Core deposit intangibles with finite lives:
Gross carrying amount	$	55,206	$	55,206	$	55,206
Accumulated amortization	(36,840)		(32,680)		(31,209)
Net carrying amount	$	18,366	$	22,526	$	23,997
Trademark with indefinite lives:
Carrying amount	5,800		5,800		5,800
Total net carrying amount	$	24,166	$	28,326	$	29,797
Specialty finance segment:
Customer list intangibles with finite lives:
Gross carrying amount	$	1,967	$	1,966	$	1,962
Accumulated amortization	(1,705)		(1,644)		(1,624)
Net carrying amount	$	262	$	322	$	338
Wealth management segment:
Customer list and other intangibles with finite lives:
Gross carrying amount	$	20,430	$	20,430	$	20,430
Accumulated amortization	(14,740)		(13,038)		(11,895)
Net carrying amount	$	5,690	$	7,392	$	8,535
Total intangible assets:
Gross carrying amount	$	83,403	$	83,402	$	83,398
Accumulated amortization	(53,285)		(47,362)		(44,728)
Total intangible assets, net	$	30,118	$	36,040	$	38,670

Estimated amortization
Actual in nine months ended September 30, 2021	$	5,923
Estimated remaining in 2021	1,809
Estimated—2022	6,115
Estimated—2023	4,658
Estimated—2024	3,259
Estimated—2025	2,552

The core deposit intangibles recognized in connection with prior bank acquisitions are amortized over a ten-year period on an accelerated basis. The customer list intangibles recognized in connection with the purchase of life insurance premium finance assets in 2009 are being amortized over an 18-year period on an accelerated basis. The customer list and other intangibles recognized in connection with prior acquisitions within the wealth management segment are being amortized over a period of up to ten years on a straight-line basis. Indefinite-lived intangible assets consist of certain trade and domain names recognized in connection with the acquisition of Veterans First Mortgage in 2018. As indefinite-lived intangible assets are not amortized, the Company assesses impairment on at least an annual basis.

Total amortization expense associated with finite-lived intangibles totaled approximately $5.9 million and $8.4 million for the nine months ended September 30, 2021 and 2020, respectively.

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(8) Mortgage Servicing Rights (“MSRs”)

The following is a summary of the changes in the carrying value of MSRs, accounted for at fair value, for the periods indicated:

	Three Months Ended				Nine Months Ended
	September 30,		September 30,		September 30,		September 30,
(In thousands)	2021		2020		2021		2020
Balance at beginning of the period	$	127,604	$	77,203	$	92,081	$	85,638
Additions from loans sold with servicing retained	15,546		20,936		57,674		50,734
Estimate of changes in fair value due to:
Early buyout options (“EBO”) exercised	(116)		(367)		(518)		(367)
Payoffs and paydowns	(8,594)		(7,863)		(27,302)		(23,557)
Changes in valuation inputs or assumptions	(888)		(3,002)		11,617		(25,541)
Fair value at end of the period	$	133,552	$	86,907	$	133,552	$	86,907
Unpaid principal balance of mortgage loans serviced for others	$	12,720,126	$	10,139,878

The Company recognizes MSR assets upon the sale of residential real estate loans to external third parties when it retains the obligation to service the loans and the servicing fee is more than adequate compensation. The initial recognition of MSR assets from loans sold with servicing retained and subsequent changes in fair value of all MSRs are recognized in mortgage banking revenue. MSRs are subject to changes in value from actual and expected prepayment of the underlying loans.

The estimation of fair value related to MSRs is partly impacted by the Company exercising its EBO on eligible loans previously sold to the Government National Mortgage Association (“GNMA”). Under such optional repurchase program, financial institutions acting as servicers are allowed to buy back from the securitized loan pool individual delinquent mortgage loans meeting certain criteria for which the institution was the original transferor of such loans. At the option of the servicer and without prior authorization from GNMA, the servicer may repurchase such delinquent loans for an amount equal to the remaining principal balance of the loan. At the time of such repurchase, any MSR value related to such loans is derecognized.

Starting in 2019, the Company periodically purchased options for the right to purchase securities not currently held within the banks’ investment portfolios and entered into interest rate swaps in which the Company elected to not designate such derivatives as hedging instruments. These option and swap transactions were designed primarily to economically hedge a portion of the fair value adjustments related to MSRs. During the second quarter of 2020, the Company terminated these interest rate swaps. There were no such options or interest rate swaps outstanding as of September 30, 2021. For more information regarding these hedges, see Note 14 - Derivative Financial Instruments in Item 1 of this report.

The MSR asset fair value is determined by using a discounted cash flow model that incorporates the objective characteristics of the portfolio as well as subjective valuation parameters that purchasers of servicing would apply to such portfolios sold into the secondary market. The subjective factors include loan prepayment speeds, discount rates, servicing costs and other economic factors. The Company uses a third party to assist in the valuation of MSRs.

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(9) Deposits

The following table is a summary of deposits as of the dates shown: 

(Dollars in thousands)	September 30, 2021			December 31, 2020			September 30, 2020
Balance:
Non-interest-bearing	$	13,255,417		$	11,748,455		$	10,409,747
NOW and interest-bearing demand deposits	3,769,825			3,349,021			3,294,071
Wealth management deposits	4,177,820			4,138,712			4,235,583
Money market	10,757,654			9,348,806			9,423,653
Savings	3,861,296			3,531,029			3,415,073
Time certificates of deposit	4,130,546			4,976,628			5,066,295
Total deposits	$	39,952,558		$	37,092,651		$	35,844,422
Mix:
Non-interest-bearing	33		%	32		%	29		%
NOW and interest-bearing demand deposits	9			9			9
Wealth management deposits	11			11			12
Money market	27			25			26
Savings	10			10			10
Time certificates of deposit	10			13			14
Total deposits	100		%	100		%	100		%

Wealth management deposits represent deposit balances (primarily money market accounts) at the Company’s subsidiary banks from brokerage customers of Wintrust Investments, LLC (“Wintrust Investments”), Chicago Deferred Exchange Company (“CDEC”), trust and asset management customers of the Company and brokerage customers from unaffiliated companies.

(10) FHLB Advances, Other Borrowings and Subordinated Notes

The following table is a summary of FHLB advances, other borrowings and subordinated notes as of the dates shown:

(In thousands)	September 30, 2021		December 31, 2020		September 30, 2020
FHLB advances	$	1,241,071	$	1,228,429	$	1,228,422
Other borrowings:
Notes payable	85,668		101,710		107,056
Short-term borrowings	14,051		11,366		7,983
Other	63,770		65,108		65,548
Secured borrowings	341,038		340,744		326,808
Total other borrowings	504,527		518,928		507,395
Subordinated notes	436,811		436,506		436,385
Total FHLB advances, other borrowings and subordinated notes	$	2,182,409	$	2,183,863	$	2,172,202

FHLB Advances

FHLB advances consist of obligations of the banks and are collateralized by qualifying commercial and residential real estate and home equity loans and certain securities. FHLB advances are stated at par value of the debt adjusted for unamortized prepayment fees paid at the time of prior restructurings of FHLB advances, unamortized fair value adjustments recorded in connection with advances acquired through acquisitions and debt issuance costs.

Notes Payable

On September 18, 2018, the Company established a $150.0 million term facility (“Term Facility”), which is part of a $200.0 million loan agreement (“Credit Agreement”) with unaffiliated banks. The Credit Agreement consists of the Term Facility with

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an original outstanding balance of $150.0 million and a $50.0 million revolving credit facility (“Revolving Credit Facility”). At September 30, 2021, the Company had a notes payable balance of $85.7 million under the Term Facility. The Term Facility is stated at par of the current outstanding balance of the debt adjusted for unamortized costs paid by the Company in relation to the debt issuance. The Company was contractually required to borrow the entire amount of the Term Facility on September 18, 2018 and all such borrowings must be repaid by September 18, 2023. Beginning December 31, 2018, the Company is required to make quarterly payments of principal plus interest on the Term Facility. At September 30, 2021, the Company had no outstanding balance under the Revolving Credit Facility. Unamortized costs paid by the Company in relation to the issuance of the Revolving Credit Facility are classified in other assets on the Consolidated Statements of Condition.

An amendment to the Credit Agreement was executed on and effective as of September 15, 2020. The amendment provided for, among other things, extension of the maturity date under the Revolving Credit Facility to September 14, 2021, revision of certain financial covenants; and the addition of a mechanism to replace LIBOR with an alternate benchmark rate. An amendment to the Credit Agreement was executed on and effective as of September 14, 2021. The amendment provided for, among other things, extension of the maturity date under the Revolving Credit Facility to September 13, 2022.

Borrowings under the amended Credit Agreement that are considered “Base Rate Loans” bear interest at a rate equal to the sum of (1) 60 basis points (in the case of a borrowing under the Revolving Credit Facility) or 75 basis points (in the case of a borrowing under the Term Facility) plus (2) the highest of (a) the federal funds rate plus 50 basis points, (b) the lender's prime rate, or (c) the Eurodollar Rate (as defined below) that would be applicable for an interest period of one month plus 100 basis points. Borrowings under the agreement that are considered “Eurodollar Rate Loans” bear interest at a rate equal to the sum of (1) 135 basis points (in the case of a borrowing under the Revolving Credit Facility) or 125 basis points (in the case of a borrowing under the Term Facility) plus (2) the LIBOR rate for the applicable period, as adjusted for statutory reserve requirements for eurocurrency liabilities (the “Eurodollar Rate”). A commitment fee is payable quarterly equal to 0.30% of the actual daily amount by which the lenders’ commitment under the Revolving Credit Facility exceeded the amount outstanding under such facility.

Borrowings under the amended Credit Agreement are secured by pledges of and first priority perfected security interests in the Company's equity interest in its bank subsidiaries and contain several restrictive covenants, including the maintenance of various capital adequacy levels, asset quality and profitability ratios, and certain restrictions on dividends and other indebtedness. At September 30, 2021, the Company was in compliance with all such covenants. The Revolving Credit Facility and the Term Facility are available to be utilized, as needed, to provide capital to fund continued growth at the Company’s banks and to serve as an interim source of funds for acquisitions, common stock repurchases or other general corporate purposes.

Short-term Borrowings

Short-term borrowings include securities sold under repurchase agreements and federal funds purchased. These borrowings totaled $14.1 million at September 30, 2021 compared to $11.4 million at December 31, 2020 and $8.0 million at September 30, 2020. At September 30, 2021, December 31, 2020 and September 30, 2020, securities sold under repurchase agreements represent $14.1 million, $11.4 million and $8.0 million, respectively, of customer sweep accounts in connection with master repurchase agreements at the banks. The Company records securities sold under repurchase agreements at their gross value and does not offset positions on the Consolidated Statements of Condition. As of September 30, 2021, the Company had pledged securities related to its customer balances in sweep accounts of $26.1 million. Securities pledged for customer balances in sweep accounts and short-term borrowings from brokers are maintained under the Company’s control and consist of mortgage-backed securities, U.S. Government agencies and collateralized mortgage obligations. These securities are included in the available-for-sale portfolio as reflected on the Company’s Consolidated Statements of Condition.

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The following is a summary of these securities pledged as of September 30, 2021 disaggregated by investment category and maturity of the related customer sweep account, and reconciled to the outstanding balance of securities sold under repurchase agreements:

(In thousands)	Overnight Sweep Collateral
Available-for-sale securities pledged
U.S. Government agencies	$	10,773
Mortgage-backed securities	14,941
Collateralized mortgage obligations	344
Total collateral pledged	26,058
Excess collateral	12,007
Securities sold under repurchase agreements	$	14,051

Other Borrowings

Other borrowings at September 30, 2021 represent a fixed-rate promissory note issued by the Company in June 2017 and amended in March 2020 (“Fixed-Rate Promissory Note”) related to and secured by three office buildings owned by the Company. At September 30, 2021, the Fixed-Rate Promissory Note had a balance of $63.8 million compared to $65.1 million at December 31, 2020 and $65.5 million at September 30, 2020. Under the Fixed-Rate Promissory Note, during the three months ended March 31, 2020, the Company made monthly principal payments and paid interest at a fixed rate of 3.36%. An amendment to the Fixed-Rate Promissory Note was executed on and effective as of March 31, 2020. The amendment increased the principal amount to $66.4 million, reduced the interest rate to 3.00% and extended the maturity date to March 31, 2025. The Fixed-Rate Promissory Note contains several restrictive covenants, including the maintenance of various capital adequacy levels, asset quality and profitability ratios, and certain restrictions on dividends and indebtedness. At September 30, 2021, the Company was in compliance with all such covenants.

Secured Borrowings

Secured borrowings at September 30, 2021 primarily represents transactions to sell an undivided co-ownership interest in all receivables owed to the Company's subsidiary, First Insurance Funding of Canada (“FIFC Canada”). In December 2014, FIFC Canada sold such interest to an unrelated third party in exchange for a cash payment of approximately C$150 million pursuant to a receivables purchase agreement (“Receivables Purchase Agreement”). The Receivables Purchase Agreement was amended in December 2015, effectively extending the maturity date from December 15, 2015 to December 15, 2017. Additionally, at that time, the unrelated third party paid an additional C$10 million, which increased the total payments to C$160 million. The Receivables Purchase Agreement was again amended in December 2017, effectively extending the maturity date from December 15, 2017 to December 16, 2019. Additionally, in December 2017, the unrelated third party paid an additional C$10 million, which increased the total payments to C$170 million. In June 2018, the unrelated third party paid an additional C$20 million, which increased the total payments to C$190 million. The Receivables Purchase Agreement was again amended in February 2019, effectively extending the maturity date from December 16, 2019 to December 15, 2020. Additionally, in February 2019, the unrelated third party paid an additional C$20 million, which increased the total payments to C$210 million. In May 2019, the unrelated third party paid an additional C$70 million, which increased the total payments to C$280 million. In January 2020, the unrelated third party paid an additional C$40 million, which increased the total payments to C$320 million, and the Receivables Purchase Agreement was amended to effectively extend the maturity date from December 15, 2020 to December 15, 2021. In May 2020, the unrelated third party paid an additional C$100 million, which increased the total payments to C$420 million. In January 2021, the Receivables Purchase Agreement was amended to effectively extend the maturity date from December 15, 2021 to December 15, 2022. These transactions were not considered sales of receivables and, as such, related proceeds received are reflected on the Company’s Consolidated Statements of Condition as a secured borrowing owed to the unrelated third party, net of unamortized debt issuance costs, and translated to the Company’s reporting currency as of the respective date. At September 30, 2021, the translated balance of the secured borrowing totaled $331.0 million compared to $329.9 million at December 31, 2020 and $315.1 million at September 30, 2020. Additionally, the interest rate under the Receivables Purchase Agreement at September 30, 2021 was 1.0694%. The remaining $10.0 million within secured borrowings at September 30, 2021 represents other sold interests in certain loans by the Company that were not considered sales and, as such, related proceeds received are reflected on the Company’s Consolidated Statements of Condition as a secured borrowing owed to the various unrelated third parties.

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Subordinated Notes

At September 30, 2021, the Company had outstanding subordinated notes totaling $436.8 million compared to $436.5 million and $436.4 million outstanding at December 31, 2020 and September 30, 2020, respectively. During the second quarter of 2019, the Company issued $300.0 million of subordinated notes, receiving $296.7 million in net proceeds. The subordinated notes have a stated interest rate of 4.85% and mature in June 2029. In 2014, the Company issued $140.0 million of subordinated notes receiving $139.1 million in net proceeds. The subordinated notes have a stated interest rate of 5.00% and mature in June 2024. Subordinated notes are stated at par adjusted for unamortized issuance costs paid related to such debt.

(11) Junior Subordinated Debentures

As of September 30, 2021, the Company owned 100% of the common securities of eleven trusts, Wintrust Capital Trust III, Wintrust Statutory Trust IV, Wintrust Statutory Trust V, Wintrust Capital Trust VII, Wintrust Capital Trust VIII, Wintrust Capital Trust IX, Northview Capital Trust I, Town Bankshares Capital Trust I, First Northwest Capital Trust I, Suburban Illinois Capital Trust II, and Community Financial Shares Statutory Trust II (the “Trusts”) set up to provide long-term financing. The Northview, Town, First Northwest, Suburban, and Community Financial Shares capital trusts were acquired as part of the acquisitions of Northview Financial Corporation, Town Bankshares, Ltd., First Northwest Bancorp, Inc., Suburban Illinois Bancorp, Inc. and Community Financial Shares, Inc., respectively. The Trusts were formed for purposes of issuing trust preferred securities to third-party investors and investing the proceeds from the issuance of the trust preferred securities and common securities solely in junior subordinated debentures issued by the Company (or assumed by the Company in connection with an acquisition), with the same maturities and interest rates as the trust preferred securities. The junior subordinated debentures are the sole assets of the Trusts. In each Trust, the common securities represent approximately 3% of the junior subordinated debentures and the trust preferred securities represent approximately 97% of the junior subordinated debentures.

The Trusts are reported in the Company’s consolidated financial statements as unconsolidated subsidiaries. Accordingly, in the Consolidated Statements of Condition, the junior subordinated debentures issued by the Company to the Trusts are reported as liabilities and the common securities of the Trusts, all of which are owned by the Company, are included in investment securities.

The following table provides a summary of the Company’s junior subordinated debentures as of September 30, 2021. The junior subordinated debentures represent the par value of the obligations owed to the Trusts.

(Dollars in thousands)	Common Securities		Trust  Preferred Securities		Junior Subordinated Debentures		Rate Structure	Contractual Rate at 9/30/2021		Issue Date	Maturity Date	Earliest Redemption Date
Wintrust Capital Trust III	$	774	$	25,000	$	25,774	L+3.25	3.38	%	04/2003	04/2033	04/2008
Wintrust Statutory Trust IV	619		20,000		20,619		L+2.80	2.93	%	12/2003	12/2033	12/2008
Wintrust Statutory Trust V	1,238		40,000		41,238		L+2.60	2.73	%	05/2004	05/2034	06/2009
Wintrust Capital Trust VII	1,550		50,000		51,550		L+1.95	2.07	%	12/2004	03/2035	03/2010
Wintrust Capital Trust VIII	1,238		25,000		26,238		L+1.45	1.58	%	08/2005	09/2035	09/2010
Wintrust Capital Trust IX	1,547		50,000		51,547		L+1.63	1.75	%	09/2006	09/2036	09/2011
Northview Capital Trust I	186		6,000		6,186		L+3.00	3.13	%	08/2003	11/2033	08/2008
Town Bankshares Capital Trust I	186		6,000		6,186		L+3.00	3.13	%	08/2003	11/2033	08/2008
First Northwest Capital Trust I	155		5,000		5,155		L+3.00	3.13	%	05/2004	05/2034	05/2009
Suburban Illinois Capital Trust II	464		15,000		15,464		L+1.75	1.87	%	12/2006	12/2036	12/2011
Community Financial Shares Statutory Trust II	109		3,500		3,609		L+1.62	1.74	%	06/2007	09/2037	06/2012
Total					$	253,566		2.32	%

The junior subordinated debentures totaled $253.6 million at September 30, 2021, December 31, 2020 and September 30, 2020.

The interest rates on the variable rate junior subordinated debentures are based on the three-month LIBOR rate and reset on a quarterly basis. At September 30, 2021, the weighted average contractual interest rate on the junior subordinated debentures was 2.32%. The Company entered into interest rate swaps with an aggregate notional value of $210.0 million to hedge the variable cash flows on certain junior subordinated debentures. The hedge-adjusted contractual interest rate on the junior subordinated debentures as of September 30, 2021, was 3.96%. Distributions on the common and preferred securities issued by the Trusts are payable quarterly at a rate per annum equal to the interest rates being earned by the Trusts on the junior subordinated debentures. Interest expense on the junior subordinated debentures is deductible for income tax purposes.

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The Company has guaranteed the payment of distributions and payments upon liquidation or redemption of the trust preferred securities, in each case to the extent of funds held by the Trusts. The Company and the Trusts believe that, taken together, the obligations of the Company under the guarantees, the junior subordinated debentures, and other related agreements provide, in the aggregate, a full, irrevocable and unconditional guarantee, on a subordinated basis, of all of the obligations of the Trusts under the trust preferred securities. Subject to certain limitations, the Company has the right to defer the payment of interest on the junior subordinated debentures at any time, or from time to time, for a period not to exceed 20 consecutive quarters. The trust preferred securities are subject to mandatory redemption, in whole or in part, upon repayment of the junior subordinated debentures at maturity or their earlier redemption. The junior subordinated debentures are redeemable in whole or in part prior to maturity at any time after the earliest redemption dates shown in the table, and earlier at the discretion of the Company if certain conditions are met, and, in any event, only after the Company has obtained Federal Reserve Bank (“FRB”) approval, if then required under applicable guidelines or regulations.

At September 30, 2021, the Company included $245.5 million of the junior subordinated debentures, net of common securities, in Tier 2 regulatory capital.

(12) Revenue from Contracts with Customers

Disaggregation of Revenue

The following table presents revenue from contracts with customers, disaggregated by the revenue source:

(Dollars in thousands)		Three Months Ended				Nine Months Ended
Revenue from contracts with customers	Location in income statement	September 30, 2021		September 30, 2020		September 30, 2021		September 30, 2020
Brokerage and insurance product commissions	Wealth management	$	5,230	$	4,563	$	15,418	$	13,991
Trust	Wealth management	5,369		4,179		15,765		13,718
Asset management	Wealth management	20,932		16,215		60,347		45,825
Total wealth management		31,531		24,957		91,530		73,534
Mortgage broker fees	Mortgage banking	270		85		460		312
Service charges on deposit accounts	Service charges on deposit accounts	14,149		11,497		39,434		33,182
Administrative services	Other non-interest income	1,359		1,077		3,843		3,122
Card related fees	Other non-interest income	2,513		2,021		6,474		5,506
Other deposit related fees	Other non-interest income	3,397		3,160		9,979		9,252
Total revenue from contracts with customers		$	53,219	$	42,797	$	151,720	$	124,908

Wealth Management Revenue

Wealth management revenue is comprised of brokerage and insurance product commissions, managed money fees and trust and asset management revenue of the Company's four wealth management subsidiaries: Wintrust Investments, Great Lakes Advisors, LLC ("GLA"), The Chicago Trust Company, N.A. ("CTC") and CDEC. All wealth management revenue is recognized in the wealth management segment.

Brokerage and insurance product commissions consists primarily of commissions earned from trade execution services on behalf of customers and from selling mutual funds, insurance and other investment products to customers. For trade execution services, the Company recognizes commissions and receives payment from the brokerage customers at the point of transaction execution. Commissions received from the investment or insurance product providers are recognized at the point of sale of the product. The Company also receives trail and other commissions from providers for certain plans. These are generally based on qualifying account values and are recognized once the performance obligation, specific to each provider, is satisfied on a monthly, quarterly or annual basis.

Trust revenue is earned primarily from trust and custody services that are generally performed over time as well as fees earned on funds held during the facilitation of tax-deferred like-kind exchange transactions. Revenue is determined periodically based on a schedule of fees applied to the value of each customer account using a time-elapsed method to measure progress toward complete satisfaction of the performance obligation. Fees are typically billed on a calendar month or quarter basis in advance or in arrears depending upon the contract. Upfront fees received related to the facilitation of tax-deferred like-kind exchange

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transactions are deferred until the transaction is completed. Additional fees earned for certain extraordinary services performed on behalf of the customers are recognized when the service has been performed.

Asset management revenue is earned from money management and advisory services that are performed over time. Revenue is based primarily on the market value of assets under management or administration using a time-elapsed method to measure progress toward complete satisfaction of the performance obligation. Fees are typically billed on a calendar month or quarter basis in advance or in arrears depending upon the contract. Certain programs provide the customer with an option of paying fees as a percentage of the account value or incurring commission charges for each trade similar to brokerage and insurance product commissions. Trade commissions and any other fees received for additional services are recognized at a point in time once the performance obligation is satisfied.

Mortgage Broker Fees

For customers desiring a mortgage product not currently offered by the Company, the Company may refer such customers and, with permission, direct such customers' applications to certain third party mortgage brokers. Mortgage broker fees are received from these brokers for such customer referrals upon settlement of the underlying mortgage. The Company's entitlement to the consideration is contingent on the settlement of the mortgage which is highly susceptible to factors outside of the Company's influence, such as third party broker's underwriting requirements. Also, the uncertainty surrounding the consideration could be resolved in varying lengths of time, dependent upon the third party brokers. Therefore, mortgage broker fees are recognized at the settlement of the underlying mortgage when the consideration is received. Broker fees are recognized in the community banking segment.

Service Charges on Deposit Accounts

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. When the service is performed at a point in time, the Company recognizes and receives revenue when the service has been performed. When the service is performed over a period of a month, the Company recognizes and receives revenue in the month the service has been performed. Service charges on deposit accounts are recognized in the community banking segment.

Administrative Services

Administrative services revenue is earned from providing outsourced administrative services, such as data processing of payrolls, billing and cash management services, to temporary staffing service clients located throughout the United States. Fees are charged periodically (typically a payroll cycle) and computed in accordance with the contractually determined rate applied to the total gross billings administered for the period. The revenue is recognized over the period using a time-elapsed method to measure progress toward complete satisfaction of the performance obligation. Other fees are charged on a per occurrence basis as the service is provided in the billing cycle. The Company has certain contracts with customers to perform outsourced administrative services and short-term accounts receivable financing. For these contracts, the total fee is allocated between the administrative services revenue and interest income during the client onboarding process based on the specific client and services provided. Administrative services revenue is recognized in the specialty finance segment.

Card and Other Deposit Related Fees

Card related fees include interchange and merchant revenue, and fees related to debit and credit cards. Interchange revenue is related to the Company issued debit cards. Other deposit related fees primarily include pay by phone processing fees, ATM and safe deposit box fees, check order charges and foreign currency related fees. Card and deposit related fees are generally based on volume of transactions and are recognized at the point in time when the service has been performed. For any consideration that is constrained, the revenue is recognized once the uncertainty is known. Upfront fees received from certain contracts are recognized on a straight line basis over the term of the contract. Card and deposit related fees are recognized in the community banking segment.

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Contract Balances

The following table provides information about contract assets, contract liabilities and receivables from contracts with customers:

(Dollars in thousands)	September 30, 2021		December 31, 2020		September 30, 2020
Contract assets	$	—	$	—	$	—
Contract liabilities	$	1,632	$	1,548	$	1,543
Mortgage broker fees receivable	$	31	$	20	$	28
Administrative services receivable	185		64		191
Wealth management receivable	12,001		10,144		10,232
Card related fees receivable	462		783		201
Total receivables from contracts with customer	$	12,679	$	11,011	$	10,652

Contract liabilities represent upfront fees that the Company received at inception of certain contracts. The revenue recognized that was included in the contract liability balance at beginning of the period totaled $798,000 and $1.3 million for the nine months ended September 30, 2021 and 2020, respectively. Receivables are recognized in the period the Company provides services and when the Company's right to consideration is unconditional. Card related fee receivable is the result of volume based fee that the Company receives from a customer on an annual basis in the second quarter of each year. Payment terms on other invoiced amounts are typically 30 days or less. Contract liabilities and receivables from contracts with customers are included within the accrued interest payable and other liabilities and accrued interest receivable and other assets line items, respectively, in the Consolidated Statements of Condition.

Transaction price allocated to the remaining performance obligations

The following table presents the estimated future timing of recognition of upfront fees related to card and deposit related fees. These upfront fees represent performance obligations that are unsatisfied or partially unsatisfied at the end of the reporting period.

(Dollars in thousands)
Estimated remaining in 2021	$	291
Estimated—2022	591
Estimated—2023	400
Estimated—2024	250
Estimated—2025	100
Total	$	1,632

Practical Expedients and Exemptions

The Company does not adjust the promised amount of consideration for the effects of a significant financing component if the Company expects, at contract inception, that the period between when the Company transfers a promised service to a customer and when the customer pays for that service is one year or less.

The Company recognizes the incremental costs of obtaining a contract as an expense when incurred if the amortization period of the asset that the entity otherwise would have recognized is one year or less.

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(13) Segment Information

The Company’s operations consist of three primary segments: community banking, specialty finance and wealth management.

The three reportable segments are strategic business units that are separately managed as they offer different products and services and have different marketing strategies. In addition, each segment’s customer base has varying characteristics and each segment has a different regulatory environment. While the Company’s management monitors each of the fifteen bank subsidiaries’ operations and profitability separately, these subsidiaries have been aggregated into one reportable operating segment due to the similarities in products and services, customer base, operations, profitability measures, and economic characteristics.

For purposes of internal segment profitability, management allocates certain intersegment and parent company balances. Management allocates a portion of revenues to the specialty finance segment related to loans and leases originated by the specialty finance segment and sold or assigned to the community banking segment. Similarly, for purposes of analyzing the contribution from the wealth management segment, management allocates a portion of the net interest income earned by the community banking segment on deposit balances of customers of the wealth management segment to the wealth management segment. See Note 9 — Deposits, for more information on these deposits. Finally, expenses incurred at the Wintrust parent company are allocated to each segment based on each segment's risk-weighted assets.

The segment financial information provided in the following table has been derived from the internal profitability reporting system used by management to monitor and manage the financial performance of the Company. The accounting policies of the segments are substantially similar to those described in “Summary of Significant Accounting Policies” in Note 1 of the Company’s 2020 Form 10-K. The Company evaluates segment performance based on after-tax profit or loss and other appropriate profitability measures common to each segment.

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The following is a summary of certain operating information for reportable segments:

	Three Months Ended				$ Change in Contribution		% Change  in Contribution
(Dollars in thousands)	September 30, 2021		September 30, 2020
Net interest income:
Community Banking	$	220,007	$	196,803	$	23,204	12	%
Specialty Finance	52,659		46,454		6,205		13
Wealth Management	7,983		6,894		1,089		16
Total Operating Segments	280,649		250,151		30,498		12
Intersegment Eliminations	6,847		5,785		1,062		18
Consolidated net interest income	$	287,496	$	255,936	$	31,560	12	%
Provision for credit losses:
Community Banking	$	(7,433)	$	23,342	$	(30,775)	NM
Specialty Finance	(483)		1,684		(2,167)		NM
Wealth Management	—		—		—		—	%
Total Operating Segments	(7,916)		25,026		(32,942)		NM
Intersegment Eliminations	—		—		—		—
Consolidated provision for credit losses	$	(7,916)	$	25,026	$	(32,942)	NM
Non-interest income:
Community Banking	$	94,292	$	136,996	$	(42,704)	(31)	%
Specialty Finance	24,426		21,409		3,017		14
Wealth Management	33,557		26,152		7,405		28
Total Operating Segments	152,275		184,557		(32,282)		(17)
Intersegment Eliminations	(15,801)		(13,964)		(1,837)		13
Consolidated non-interest income	$	136,474	$	170,593	$	(34,119)	(20)	%
Net revenue:
Community Banking	$	314,299	$	333,799	$	(19,500)	(6)	%
Specialty Finance	77,085		67,863		9,222		14
Wealth Management	41,540		33,046		8,494		26
Total Operating Segments	432,924		434,708		(1,784)		0
Intersegment Eliminations	(8,954)		(8,179)		(775)		9
Consolidated net revenue	$	423,970	$	426,529	$	(2,559)	(1)	%
Segment profit:
Community Banking	$	68,790	$	70,584	$	(1,794)	(3)	%
Specialty Finance	30,202		29,859		343		1	%
Wealth Management	10,145		6,872		3,273		48
Consolidated net income	$	109,137	$	107,315	$	1,822	2	%
Segment assets:
Community Banking	$	38,464,169	$	35,729,021	$	2,735,148	8	%
Specialty Finance	7,918,933		6,732,765		1,186,168		18
Wealth Management	1,449,169		1,269,932		179,237		14
Consolidated total assets	$	47,832,271	$	43,731,718	$	4,100,553	9	%

NM - Not meaningful

38

	Nine Months Ended				$ Change in Contribution		% Change  in Contribution
(Dollars in thousands)	September 30, 2021		September 30, 2020
Net interest income:
Community Banking	$	643,175	$	609,316	$	33,859	6	%
Specialty Finance	142,752		129,581		13,171		10
Wealth Management	23,197		23,272		(75)		0
Total Operating Segments	809,124		762,169		46,955		6
Intersegment Eliminations	19,857		18,341		1,516		8
Consolidated net interest income	$	828,981	$	780,510	$	48,471	6	%
Provision for credit losses:
Community Banking	$	(69,168)	$	207,168	$	(276,336)	NM
Specialty Finance	606		5,872		(5,266)		(90)	%
Wealth Management	—		—		—		—
Total Operating Segments	(68,562)		213,040		(281,602)		NM
Intersegment Eliminations	—		—		—		—
Consolidated provision for credit losses	$	(68,562)	$	213,040	$	(281,602)	NM
Non-interest income:
Community Banking	$	331,970	$	347,697	$	(15,727)	(5)	%
Specialty Finance	69,999		64,548		5,451		8
Wealth Management	95,651		74,747		20,904		28
Total Operating Segments	497,620		486,992		10,628		2
Intersegment Eliminations	(45,267)		(41,164)		(4,103)		10
Consolidated non-interest income	$	452,353	$	445,828	$	6,525	1	%
Net revenue:
Community Banking	$	975,145	$	957,013	$	18,132	2	%
Specialty Finance	212,751		194,129		18,622		10
Wealth Management	118,848		98,019		20,829		21
Total Operating Segments	1,306,744		1,249,161		57,583		5
Intersegment Eliminations	(25,410)		(22,823)		(2,587)		11
Consolidated net revenue	$	1,281,334	$	1,226,338	$	54,996	4	%
Segment profit:
Community Banking	$	263,343	$	97,858	$	165,485	NM
Specialty Finance	77,955		74,680		3,275		4	%
Wealth Management	26,096		19,248		6,848		36
Consolidated net income	$	367,394	$	191,786	$	175,608	92	%

NM - Not meaningful

(14) Derivative Financial Instruments

The Company primarily enters into derivative financial instruments as part of its strategy to manage its exposure to changes in interest rates. Derivative instruments represent contracts between parties that result in one party delivering cash to the other party based on a notional amount and an underlying term (such as a rate, security price or price index) as specified in the contract. The amount of cash delivered from one party to the other is determined based on the interaction of the notional amount of the contract with the underlying term. Derivatives are also implicit in certain contracts and commitments.

The derivative financial instruments currently used by the Company to manage its exposure to interest rate risk include: (1) interest rate swaps and collars to manage the interest rate risk of certain fixed and variable rate assets and variable rate liabilities; (2) interest rate lock commitments provided to customers to fund certain mortgage loans to be sold into the secondary market; (3) forward commitments for the future delivery of such mortgage loans to protect the Company from adverse changes in interest rates and corresponding changes in the value of mortgage loans held-for-sale; (4) covered call options to economically hedge specific investment securities and receive fee income effectively enhancing the overall yield on such securities to compensate for net interest margin compression; and (5) options and swaps to economically hedge a portion of the fair value adjustments related to the Company's mortgage servicing rights portfolio. The Company also enters into derivatives (typically interest rate swaps) with certain qualified borrowers to facilitate the borrowers’ risk management strategies and concurrently enters into mirror-image derivatives with a third party counterparty, effectively making a market in the derivatives for such borrowers. Additionally, the Company enters into foreign currency contracts to manage foreign exchange risk associated with certain foreign currency denominated assets.

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The Company recognizes derivative financial instruments in the consolidated financial statements at fair value regardless of the purpose or intent for holding the instrument. The Company records derivative assets and derivative liabilities on the Consolidated Statements of Condition within accrued interest receivable and other assets and accrued interest payable and other liabilities, respectively. Changes in the fair value of derivative financial instruments are either recognized in income or in shareholders’ equity as a component of accumulated other comprehensive income or loss depending on whether the derivative financial instrument qualifies for hedge accounting and, if so, whether it qualifies as a fair value hedge or cash flow hedge.

Changes in fair values of derivatives accounted for as fair value hedges are recorded in income in the same period and in the same income statement line as changes in the fair values of the hedged items that relate to the hedged risk(s). Changes in fair values of derivative financial instruments accounted for as cash flow hedges are recorded as a component of accumulated other comprehensive income or loss, net of deferred taxes, and reclassified to earnings when the hedged transaction affects earnings. Changes in fair values of derivative financial instruments not designated in a hedging relationship pursuant to ASC 815 are reported in non-interest income during the period of the change. Derivative financial instruments are valued by a third party and are corroborated by comparison with valuations provided by the respective counterparties. Fair values of certain mortgage banking derivatives (interest rate lock commitments and forward commitments to sell mortgage loans) are estimated based on changes in mortgage interest rates from the date of the commitment. The fair value of foreign currency derivatives is computed based on changes in foreign currency rates stated in the contract compared to those prevailing at the measurement date.

The table below presents the fair value of the Company’s derivative financial instruments as of September 30, 2021, December 31, 2020 and September 30, 2020:

	Derivative Assets						Derivative Liabilities
(In thousands)	September 30, 2021		December 31, 2020		September 30, 2020		September 30, 2021		December 31, 2020		September 30, 2020
Derivatives designated as hedging instruments under ASC 815:
Interest rate derivatives designated as Cash Flow Hedges	$	37,529	$	8,182	$	—	$	18,054	$	39,715	$	49,110
Interest rate derivatives designated as Fair Value Hedges	839		—		—		8,427		14,520		16,213
Total derivatives designated as hedging instruments under ASC 815	$	38,368	$	8,182	$	—	$	26,481	$	54,235	$	65,323
Derivatives not designated as hedging instruments under ASC 815:
Interest rate derivatives	$	130,947	$	221,205	$	253,238	$	131,097	$	221,608	$	253,530
Interest rate lock commitments	16,795		48,925		68,201		753		—		—
Forward commitments to sell mortgage loans	5,260		—		—		2,740		12,510		8,088
Foreign exchange contracts	242		111		49		243		112		49
Total derivatives not designated as hedging instruments under ASC 815	$	153,244	$	270,241	$	321,488	$	134,833	$	234,230	$	261,667
Total Derivatives	$	191,612	$	278,423	$	321,488	$	161,314	$	288,465	$	326,990

Cash Flow Hedges of Interest Rate Risk

The Company’s objectives in using interest rate derivatives are to add stability to net interest income and to manage its exposure to interest rate movements. To accomplish these objectives, the Company primarily uses interest rate swaps as part of its interest rate risk management strategy. Interest rate swaps designated as cash flow hedges involve the receipt of variable-rate amounts from a counterparty in exchange for the Company making fixed-rate payments over the life of the agreements without the exchange of the underlying notional amount. Interest rate collars designated as cash flow hedges involve the receipt of amounts in which the interest rate specified in the contract exceeds the agreed upon cap strike price or the payment of amounts in which the interest rate specified in the contract is below the agreed upon floor strike price at the end of each period.

As of September 30, 2021, the Company had 27 interest rate swap derivatives designated as cash flow hedges of variable rate deposits and certain junior subordinated debentures, and one interest rate collar derivative designated as a cash flow hedge of the Company's variable rate Term Facility. When the relationship between the hedged item and hedging instrument is highly effective at achieving offsetting changes in cash flows attributable to the hedged risk, changes in the fair value of these cash flow hedges are recorded in accumulated other comprehensive income or loss and are subsequently reclassified to interest expense as interest payments are made on such variable rate deposits. The changes in fair value (net of tax) are separately disclosed in the Consolidated Statements of Comprehensive Income.

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The table below provides details on these cash flow hedges, summarized by derivative type and maturity, as of September 30, 2021:

	September 30, 2021
(In thousands)	Notional		Fair Value
Maturity Date	Amount		Asset (Liability)
Interest Rate Swaps:
October 2021	$	25,000	$	(9)
November 2021	20,000		(65)
December 2021	165,000		(812)
March 2022	500,000		(110)
May 2022	370,000		(4,335)
June 2022	160,000		(2,156)
July 2022	230,000		(3,218)
August 2022	235,000		(3,795)
March 2023	250,000		(133)
April 2024	250,000		784
July 2027 (1)	1,000,000		36,745
Interest Rate Collars:
September 2023	85,714		(3,421)
Total Cash Flow Hedges	$	3,290,714	$	19,475

(1)Interest rate swaps effective starting in July 2022.

A rollforward of the amounts in accumulated other comprehensive income or loss related to interest rate derivatives designated as cash flow hedges follows:

	Three Months Ended				Nine Months Ended
(In thousands)	September 30, 2021		September 30, 2020		September 30, 2021		September 30, 2020
Unrealized gain (loss) at beginning of period	$	10,471	$	(59,503)	$	(31,533)	$	(17,943)
Amount reclassified from accumulated other comprehensive income to interest expense on deposits, other borrowings and junior subordinated debentures	6,780		5,667		20,342		12,208
Amount of income (loss) recognized in other comprehensive income	2,224		4,726		30,666		(43,375)
Unrealized gain (loss) at end of period	$	19,475	$	(49,110)	$	19,475	$	(49,110)

As of September 30, 2021, the Company estimates that during the next twelve months $14.9 million will be reclassified from accumulated other comprehensive income or loss as an increase to interest expense.

Fair Value Hedges of Interest Rate Risk

Interest rate swaps designated as fair value hedges involve the payment of fixed amounts to a counterparty in exchange for the Company receiving variable payments over the life of the agreements without the exchange of the underlying notional amount. As of September 30, 2021, the Company has 15 interest rate swaps with an aggregate notional amount of $229.6 million that were designated as fair value hedges primarily associated with fixed rate commercial and industrial and commercial real estate loans as well as life insurance premium finance receivables. One of these interest rate swaps with an aggregate notional amount of $73.9 million has terms starting after September 30, 2021.

For derivatives designated and that qualify as fair value hedges, the net gain or loss from the entire change in the fair value of the derivative instrument is recognized in the same income statement line item as the earnings effect, including the net gain or loss, of the hedged item (interest income earned on fixed rate loans) when the hedged item affects earnings.

The following table presents the carrying amount of the hedged assets/(liabilities) and the cumulative amount of fair value hedging adjustment included in the carrying amount of the hedged assets/(liabilities) that are designated as a fair value hedge accounting relationship as of September 30, 2021:

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		September 30, 2021
(In thousands) Derivatives in Fair Value Hedging Relationships	Location in the Statement of Condition	Carrying Amount of the Hedged Assets/(Liabilities)		Cumulative Amount of Fair Value Hedging Adjustment Included in the Carrying Amount of the Hedged Assets/(Liabilities)		Cumulative Amount of Fair Value Hedging Adjustment Remaining for any Hedged Assets (Liabilities) for which Hedge Accounting has been Discontinued
Interest rate swaps	Loans, net of unearned income	$	162,775	$	7,815	$	(138)
	Available-for-sale debt securities	1,229		84		—

The following table presents the loss or gain recognized related to derivative instruments that are designated as fair value hedges for the respective period:

(In thousands) Derivatives in Fair Value Hedging Relationships	Location of (Loss)/Gain Recognized in Income on Derivative	Three Months Ended		Nine Months Ended
		September 30, 2021		September 30, 2021
Interest rate swaps	Interest and fees on loans	$	31	$	61
	Interest income - investment securities	—		—

Non-Designated Hedges

The Company does not use derivatives for speculative purposes. Derivatives not designated as accounting hedges are used to manage the Company’s economic exposure to interest rate movements and other identified risks but do not meet the strict hedge accounting requirements of ASC 815. Changes in the fair value of derivatives not designated in hedging relationships are recorded directly in earnings.

Interest Rate Derivatives—Periodically, the Company may purchase interest rate cap derivatives designed to act as an economic hedge of the risk of the negative impact on its fixed-rate loan portfolios from rising interest rates, most notably the LIBOR index. As of September 30, 2021, the Company held interest rate caps with an aggregate notional value of $1.0 billion.

Additionally, the Company has interest rate derivatives, including swaps and option products, resulting from a service the Company provides to certain qualified borrowers. The Company’s banking subsidiaries execute certain derivative products (typically interest rate swaps) directly with qualified commercial borrowers to facilitate their respective risk management strategies. For example, these arrangements allow the Company’s commercial borrowers to effectively convert a variable rate loan to a fixed rate. In order to minimize the Company’s exposure on these transactions, the Company simultaneously executes offsetting derivatives with third parties. In most cases, the offsetting derivatives have mirror-image terms, which result in the positions’ changes in fair value substantially offsetting through earnings each period. However, to the extent that the derivatives are not a mirror-image and because of differences in counterparty credit risk, changes in fair value will not completely offset resulting in some earnings impact each period. Changes in the fair value of these derivatives are included in other non-interest income. At September 30, 2021, the Company had interest rate derivative transactions with an aggregate notional amount of approximately $9.2 billion (all interest rate swaps and caps with customers and third parties) related to this program. These interest rate derivatives had maturity dates ranging from October 2021 to February 2045.

Mortgage Banking Derivatives—These derivatives include interest rate lock commitments provided to customers to fund certain mortgage loans to be sold into the secondary market and forward commitments for the future delivery of such loans. It is the Company’s practice to enter into forward commitments for the future delivery of a portion of our residential mortgage loan production when interest rate lock commitments are entered into in order to economically hedge the effect of future changes in interest rates on its commitments to fund the loans as well as on its portfolio of mortgage loans held-for-sale. The Company’s mortgage banking derivatives have not been designated as being in hedge relationships. At September 30, 2021, the Company had forward commitments to sell mortgage loans with an aggregate notional amount of approximately $1.3 billion and interest rate lock commitments with an aggregate notional amount of approximately $624.8 million. The fair values of these derivatives were estimated based on changes in mortgage rates from the dates of the commitments. Changes in the fair value of these mortgage banking derivatives are included in mortgage banking revenue.

Foreign Currency Derivatives—These derivatives include foreign currency contracts used to manage the foreign exchange risk associated with foreign currency denominated assets and transactions. Foreign currency contracts, which include spot and

42

forward contracts, represent agreements to exchange the currency of one country for the currency of another country at an agreed-upon price on an agreed-upon settlement date. As a result of fluctuations in foreign currencies, the U.S. dollar-equivalent value of the foreign currency denominated assets or forecasted transactions increase or decrease. Gains or losses on the derivative instruments related to these foreign currency denominated assets or forecasted transactions are expected to substantially offset this variability. As of September 30, 2021, the Company held foreign currency derivatives with an aggregate notional amount of approximately $19.3 million.

Other Derivatives—Periodically, the Company will sell options to a bank or dealer for the right to purchase certain securities held within the banks’ investment portfolios (covered call options). These option transactions are designed primarily to mitigate overall interest rate risk and to increase the total return associated with the investment securities portfolio. These options do not qualify as accounting hedges pursuant to ASC 815, and, accordingly, changes in fair value of these contracts are recognized as other non-interest income. There were no covered call options outstanding as of September 30, 2021, December 31, 2020 or September 30, 2020.

Periodically, the Company will purchase options for the right to purchase securities not currently held within the banks' investment portfolios or enter into interest rate swaps in which the Company elects to not designate such derivatives as hedging instruments. These option and swap transactions are designed primarily to economically hedge a portion of the fair value adjustments related to the Company's mortgage servicing rights portfolio. The gain or loss associated with these derivative contracts are included in mortgage banking revenue. There were no such options or swaps outstanding as of September 30, 2021, December 31, 2020 or September 30, 2020.

Amounts included in the Consolidated Statements of Income related to derivative instruments not designated in hedge relationships were as follows:

(In thousands)		Three Months Ended				Nine Months Ended
Derivative	Location in income statement	September 30, 2021		September 30, 2020		September 30, 2021		September 30, 2020
Interest rate swaps and caps	Trading gains (losses), net	$	55	$	135	$	(56)	$	(996)
Mortgage banking derivatives	Mortgage banking revenue	(4,201)		11,202		(32,160)		71,761
Foreign exchange contracts	Trading (losses) gains, net	(1)		5		(9)		(8)
Covered call options	Fees from covered call options	1,157		—		2,545		2,292
Derivative contract held as economic hedge on MSRs	Mortgage banking revenue	—		—		—		4,749

Credit Risk

Derivative instruments have inherent risks, primarily market risk and credit risk. Market risk is associated with changes in interest rates and credit risk relates to the risk that the counterparty will fail to perform according to the terms of the agreement. The amounts potentially subject to market and credit risks are the streams of interest payments under the contracts and the market value of the derivative instrument and not the notional principal amounts used to express the volume of the transactions. Market and credit risks are managed and monitored as part of the Company's overall asset-liability management process, except that the credit risk related to derivatives entered into with certain qualified borrowers is managed through the Company's standard loan underwriting process since these derivatives are secured through collateral provided by the loan agreements. Actual exposures are monitored against various types of credit limits established to contain risk within parameters. When deemed necessary, appropriate types and amounts of collateral are obtained to minimize credit exposure.

The Company has agreements with certain of its interest rate derivative counterparties that contain cross-default provisions, which provide that if the Company defaults on any of its indebtedness, including default where repayment of the indebtedness has not been accelerated by the lender, then the Company could also be declared in default on its derivative obligations. The Company also has agreements with certain of its derivative counterparties that contain a provision allowing the counterparty to terminate the derivative positions if the Company fails to maintain its status as a well or adequately capitalized institution, which would require the Company to settle its obligations under the agreements. As of September 30, 2021, the fair value of interest rate derivatives in a net liability position that were subject to such agreements, which includes accrued interest related to these agreements, was $115.7 million. If the Company had breached any of these provisions and the derivatives were terminated as a result, the Company would have been required to settle its obligations under the agreements at the termination value and would have been required to pay any additional amounts due in excess of amounts previously posted as collateral with the respective counterparty.

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The Company is also exposed to the credit risk of its commercial borrowers who are counterparties to interest rate derivatives with the banks. This counterparty risk related to the commercial borrowers is managed and monitored through the banks' standard underwriting process applicable to loans since these derivatives are secured through collateral provided by the loan agreement. The counterparty risk associated with the mirror-image swaps executed with third parties is monitored and managed in connection with the Company's overall asset liability management process.

The Company records interest rate derivatives subject to master netting agreements at their gross value and does not offset derivative assets and liabilities on the Consolidated Statements of Condition. The tables below summarize the Company's interest rate derivatives and offsetting positions as of the dates shown.

	Derivative Assets						Derivative Liabilities
	Fair Value						Fair Value
(In thousands)	September 30, 2021		December 31, 2020		September 30, 2020		September 30, 2021		December 31, 2020		September 30, 2020
Gross Amounts Recognized	$	169,315	$	229,387	$	253,238	$	157,578	$	275,843	$	318,853
Less: Amounts offset in the Statements of Financial Condition	—		—		—		—		—		—
Net amount presented in the Statements of Financial Condition	$	169,315	$	229,387	$	253,238	$	157,578	$	275,843	$	318,853
Gross amounts not offset in the Statements of Financial Condition
Offsetting Derivative Positions	(42,645)		(8,647)		(353)		(42,645)		(8,647)		(353)
Collateral Posted	—		—		—		(110,440)		(266,832)		(318,071)
Net Credit Exposure	$	126,670	$	220,740	$	252,885	$	4,493	$	364	$	429

(15) Fair Values of Assets and Liabilities

The Company measures, monitors and discloses certain of its assets and liabilities on a fair value basis. These financial assets and financial liabilities are measured at fair value in three levels, based on the markets in which the assets and liabilities are traded and the observability of the inputs used to determine fair value. These levels are:

•Level 1—unadjusted quoted prices in active markets for identical assets or liabilities.

•Level 2—inputs other than quoted prices included in Level 1 that are observable for the asset or liability, either directly or indirectly. These include quoted prices for similar assets or liabilities in active markets, quoted prices for identical or similar assets or liabilities in markets that are not active, inputs other than quoted prices that are observable for the asset or liability or inputs that are derived principally from or corroborated by observable market data by correlation or other means.

•Level 3—significant unobservable inputs that reflect the Company’s own assumptions that market participants would use in pricing the assets or liabilities. Level 3 assets and liabilities include financial instruments whose value is determined using pricing models, discounted cash flow methodologies, or similar techniques, as well as instruments for which the determination of fair value requires significant management judgment or estimation.

A financial instrument’s categorization within the above valuation hierarchy is based upon the lowest level of input that is significant to the fair value measurement. The Company’s assessment of the significance of a particular input to the fair value measurement in its entirety requires judgment, and considers factors specific to the assets or liabilities. The following is a description of the valuation methodologies used for the Company’s assets and liabilities measured at fair value on a recurring basis.

Available-for-sale debt securities, trading account securities and equity securities with readily determinable fair value—Fair values for available-for-sale debt securities, trading account securities and equity securities with readily determinable fair value are typically based on prices obtained from independent pricing vendors. Securities measured with these valuation techniques are generally classified as Level 2 of the fair value hierarchy. Typically, standard inputs such as benchmark yields, reported trades for similar securities, issuer spreads, benchmark securities, bids, offers and reference data including market research publications are used to fair value these securities. When these inputs are not available, broker/dealer quotes may be obtained by the vendor to determine the fair value of the security. We review the vendor’s pricing methodologies to determine if observable market information is being used, versus unobservable inputs. Fair value measurements using significant inputs that are unobservable in the market due to limited activity or a less liquid market are classified as Level 3 in the fair value hierarchy.

44

The fair value of U.S. Treasury securities and certain equity securities with readily determinable fair value are based on unadjusted quoted prices in active markets for identical securities. As such, these securities are classified as Level 1 in the fair value hierarchy.

The Company’s Investment Operations Department is responsible for the valuation of Level 3 available-for-sale debt securities. The methodology and variables used as inputs in pricing Level 3 securities are derived from a combination of observable and unobservable inputs. The unobservable inputs are determined through internal assumptions that may vary from period to period due to external factors, such as market movement and credit rating adjustments.

At September 30, 2021, the Company classified $117.7 million of municipal securities as Level 3. These municipal securities are bond issues for various municipal government entities primarily located in the Chicago metropolitan area and southern Wisconsin and are privately placed, non-rated bonds without CUSIP numbers. The Company’s methodology for pricing these securities focuses on three distinct inputs: equivalent rating, yield and other pricing terms. To determine the rating for a given non-rated investment debt security, the Investment Operations Department references a rated, publicly issued bond by the same issuer if available. A reduction is then applied to the rating obtained from the comparable bond, as the Company believes if liquidated, a non-rated bond would be valued less than a similar bond with a verifiable rating. The reduction applied by the Company is one complete rating grade (i.e. a “AA” rating for a comparable bond would be reduced to “A” for the Company’s valuation). For bond issues without comparable bond proxies, a rating of "BBB" was assigned. In the third quarter of 2021, all of the ratings derived by the Investment Operations Department using the above process were “BBB” or better. The fair value measurement noted above is sensitive to the rating input, as a higher rating typically results in an increased valuation. The remaining pricing inputs used in the bond valuation are observable. Based on the rating determined in the above process, Investment Operations obtains a corresponding current market yield curve available to market participants. Other terms including coupon, maturity date, redemption price, number of coupon payments per year, and accrual method are obtained from the individual bond term sheets. Certain municipal bonds held by the Company at September 30, 2021 are continuously callable. When valuing these bonds, the fair value is capped at par value as the Company assumes a market participant would not pay more than par for a continuously callable bond.

Mortgage loans held-for-sale—The fair value of mortgage loans held-for-sale is determined by reference to investor price sheets for loan products with similar characteristics. As such, these loans are classified as Level 2 in the fair value hierarchy.

Loans held-for-investment—The fair value for loans in which the Company elected the fair value option is estimated by discounting future scheduled cash flows for the specific loan through maturity, adjusted for estimated credit losses and prepayments. The Company uses a discount rate based on the actual coupon rate of the underlying loan. At September 30, 2021, the Company classified $12.1 million of loans held-for-investment as Level 3. The assumed discount rate used as an input to value these loans at September 30, 2021 was 2.88%. The higher the rate utilized to discount estimated future cash flows, the lower the fair value measurement. As noted above, the fair value estimate also includes assumptions of prepayment speeds and credit losses. The Company included a prepayments speed assumption of 12.77% at September 30, 2021. Prepayment speeds are inversely related to the fair value of these loans as an increase in prepayment speeds results in a decreased valuation. Additionally, the weighted average credit discount used as an input to value the specific loans was 0.51% with credit loss discount ranging from 0%-3% at September 30, 2021.

MSRs—Fair value for MSRs is determined utilizing a valuation model which calculates the fair value of each servicing rights based on the present value of estimated future cash flows. The Company uses a discount rate commensurate with the risk associated with each servicing rights, given current market conditions. At September 30, 2021, the Company classified $133.6 million of MSRs as Level 3. The weighted average discount rate used as an input to value the pool of MSRs at September 30, 2021 was 9.82% with discount rates applied ranging from 7%-19%. The higher the rate utilized to discount estimated future cash flows, the lower the fair value measurement. The fair value of MSRs was also estimated based on other assumptions including prepayment speeds and the cost to service. Prepayment speeds ranged from 6%-92% or a weighted average prepayment speed of 12.77%. Further, for current and delinquent loans, the Company assumed a weighted average cost of servicing of $75 and $287, respectively, per loan. Prepayment speeds and the cost to service are both inversely related to the fair value of MSRs as an increase in prepayment speeds or the cost to service results in a decreased valuation. See Note 8 - Mortgage Servicing Rights (“MSRs”) for further discussion of MSRs.

Derivative instruments—The Company’s derivative instruments include interest rate swaps, caps and collars, commitments to fund mortgages for sale into the secondary market (interest rate locks), forward commitments to end investors for the sale of mortgage loans and foreign currency contracts. Interest rate swaps, caps and collars are valued by a third party, using models that primarily use market observable inputs, such as yield curves, and are classified as Level 2 in the fair value hierarchy. The credit risk associated with derivative financial instruments that are subject to master netting agreements is measured on a net basis by counterparty portfolio. The fair value for mortgage-related derivatives is based on changes in mortgage rates from the

45

date of the commitments. The fair value of foreign currency derivatives is computed based on change in foreign currency rates stated in the contract compared to those prevailing at the measurement date.

At September 30, 2021, the Company classified $14.6 million of derivative assets related to interest rate locks as Level 3. The fair value of interest rate locks is based on prices obtained for loans with similar characteristics from third parties, adjusted for the pull-through rate, which represents the Company’s best estimate of the likelihood that a committed loan will ultimately fund. The weighted-average pull-through rate at September 30, 2021 was 86% with pull-through rates applied ranging from 1% to 100%. Pull-through rates are directly related to the fair value of interest rate locks as an increase in the pull-through rate results in an increased valuation.

Nonqualified deferred compensation assets—The underlying assets relating to the nonqualified deferred compensation plan are included in a trust and primarily consist of non-exchange traded institutional funds which are priced based by an independent third party service. These assets are classified as Level 2 in the fair value hierarchy.

The following tables present the balances of assets and liabilities measured at fair value on a recurring basis for the periods presented:

	September 30, 2021
(In thousands)	Total		Level 1		Level 2		Level 3
Available-for-sale securities
U.S. Treasury	$	6,000	$	6,000	$	—	$	—
U.S. Government agencies	53,275		—		53,275		—
Municipal	174,600		—		56,876		117,724
Corporate notes	99,118		—		99,118		—
Mortgage-backed	2,040,485		—		2,040,485		—
Trading account securities	1,103		—		1,103		—
Equity securities with readily determinable fair value	88,193		80,127		8,066		—
Mortgage loans held-for-sale	925,312		—		925,312		—
Loans held-for-investment	30,979		—		18,847		12,132
MSRs	133,552		—		—		133,552
Nonqualified deferred compensation assets	15,797		—		15,797		—
Derivative assets	191,612		—		177,000		14,612
Total	$	3,760,026	$	86,127	$	3,395,879	$	278,020
Derivative liabilities	$	161,314	$	—	$	161,314	$	—

 

	December 31, 2020
(In thousands)	Total		Level 1		Level 2		Level 3
Available-for-sale securities
U.S. Treasury	$	304,971	$	304,971	$	—	$	—
U.S. Government agencies	84,513		—		82,547		1,966
Municipal	146,910		—		37,034		109,876
Corporate notes	91,405		—		91,405		—
Mortgage-backed	2,428,040		—		2,428,040		—
Trading account securities	671		—		671		—
Equity securities with readily determinable fair value	90,862		82,796		8,066		—
Mortgage loans held-for-sale	1,272,090		—		1,272,090		—
Loans held-for-investment	55,134		—		44,854		10,280
MSRs	92,081		—		—		92,081
Nonqualified deferred compensation assets	15,398		—		15,398		—
Derivative assets	278,423		—		230,332		48,091
Total	$	4,860,498	$	387,767	$	4,210,437	$	262,294
Derivative liabilities	$	288,465	$	—	$	288,465	$	—

46

	September 30, 2020
(In thousands)	Total		Level 1		Level 2		Level 3
Available-for-sale securities
U.S. Treasury	$	280,108	$	280,108	$	—	$	—
U.S. Government agencies	178,666		—		176,537		2,129
Municipal	154,195		—		34,724		119,471
Corporate notes	104,135		—		104,135		—
Mortgage-backed	2,229,355		—		2,229,355		—
Trading account securities	1,720		—		1,720		—
Equity securities with readily determinable fair value	54,398		46,332		8,066		—
Mortgage loans held-for-sale	959,671		—		959,671		—
Loans held-for-investment	253,515		—		240,902		12,613
MSRs	86,907		—		—		86,907
Nonqualified deferred compensation assets	14,197		—		14,197		—
Derivative assets	321,488		—		254,601		66,887
Total	$	4,638,355	$	326,440	$	4,023,908	$	288,007
Derivative liabilities	$	326,990	$	—	$	326,990	$	—

The aggregate remaining contractual principal balance outstanding as of September 30, 2021, December 31, 2020 and September 30, 2020 for mortgage loans held-for-sale measured at fair value under ASC 825 was $900.8 million, $1.2 billion and $927.1 million, respectively, while the aggregate fair value of mortgage loans held-for-sale was $925.3 million, $1.3 billion and $959.7 million, for the same respective periods, as shown in the above tables. There were $122.6 million of loans past due greater than 90 days and still accruing in the mortgage loans held-for-sale portfolio as of September 30, 2021 compared to $134.1 million as of December 31, 2020 and $27.3 million as of September 30, 2020. All of the loans past due greater than 90 days and still accruing as of September 30, 2021 were individual delinquent mortgage loans bought back from GNMA at the unconditional option of the Company as servicer for those loans.

The changes in Level 3 assets measured at fair value on a recurring basis during the three and nine months ended September 30, 2021 and 2020 are summarized as follows:

			U.S. Government agencies		Loans held-for- investment		Mortgage servicing rights		Derivative assets
(In thousands)	Municipal
Balance at July 1, 2021	$	117,606	$	—	$	11,007	$	127,604	$	22,570
Total net gains (losses) included in:
Net income (1)	—		—		54		5,948		(7,958)
Other comprehensive income (loss)	(757)		—		—		—		—
Purchases	875		—		—		—		—
Issuances	—		—		—		—		—
Sales	—		—		—		—		—
Settlements	—		—		(588)		—		—
Net transfers into/(out of) Level 3	—		—		1,659		—		—
Balance at September 30, 2021	$	117,724	$	—	$	12,132	$	133,552	$	14,612

(1)Changes in the balance of MSRs and derivative assets related to fair value adjustments are recorded as components of mortgage banking revenue. Changes in the balance of loans held-for-investment related to fair value adjustments are recorded as other non-interest income.

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			U.S. Government Agencies		Loans held-for- investment		Mortgage servicing rights		Derivative Assets
(In thousands)	Municipal
Balance at January 1, 2021	$	109,876	$	1,966	$	10,280	$	92,081	$	48,091
Total net gains (losses) included in:
Net income (1)	—		(4)		(309)		41,471		(33,479)
Other comprehensive income (loss)	(3,199)		(24)		—		—		—
Purchases	19,038		—		—		—		—
Issuances	—		—		—		—		—
Sales	—		—		—		—		—
Settlements	(7,991)		(1,938)		(4,565)		—		—
Net transfers into/(out of) Level 3	—		—		6,726		—		—
Balance at September 30, 2021	$	117,724	$	—	$	12,132	$	133,552	$	14,612

			U.S. Government agencies		Loans held-for- investment		Mortgage servicing rights		Derivative assets
(In thousands)	Municipal
Balance at July 1, 2020	$	117,255	$	2,293	$	13,953	$	77,203	$	58,433
Total net gains (losses) included in:
Net income (1)	—		—		47		9,704		8,454
Other comprehensive income (loss)	64		(7)		—		—		—
Purchases	3,221		—		—		—		—
Issuances	—		—		—		—		—
Sales	—		—		—		—		—
Settlements	(1,069)		(157)		(7,877)		—		—
Net transfers into/(out of) Level 3	—		—		6,490		—		—
Balance at September 30, 2020	$	119,471	$	2,129	$	12,613	$	86,907	$	66,887

			U.S. Government Agencies		Loans held-for- investment		Mortgage servicing rights		Derivative Assets
(In thousands)	Municipal
Balance at January 1, 2020	$	111,950	$	2,646	$	9,620	$	85,638	$	2,631
Total net gains (losses) included in:
Net income (1)	—		—		169		1,269		64,256
Other comprehensive income (loss)	(1,731)		(46)		—		—		—
Purchases	16,093		—		—		—		—
Issuances	—		—		—		—		—
Sales	—		—		—		—		—
Settlements	(6,841)		(471)		(9,337)		—		—
Net transfers into/(out of) Level 3	—		—		12,161		—		—
Balance at September 30, 2020	$	119,471	$	2,129	$	12,613	$	86,907	$	66,887

(1)Changes in the balance of MSRs and derivative assets related to fair value adjustments are recorded as components of mortgage banking revenue. Changes in the balance of loans held-for-investment related to fair value adjustments are recorded as other non-interest income.

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Also, the Company may be required, from time to time, to measure certain other assets at fair value on a nonrecurring basis in accordance with GAAP. These adjustments to fair value usually result from impairment charges on individual assets. For assets measured at fair value on a nonrecurring basis that were still held in the balance sheet at the end of the period, the following table provides the carrying value of the related individual assets or portfolios at September 30, 2021:

	September 30, 2021								Three Months Ended September 30, 2021 Fair Value Losses Recognized, net		Nine Months Ended September 30, 2021 Fair Value Losses Recognized, net
(In thousands)	Total		Level 1		Level 2		Level 3
Individually assessed loans - foreclosure probable and collateral-dependent	$	78,653	$	—	$	—	$	78,653	$	1,425	$	17,956
Other real estate owned (1)	13,845		—		—		13,845		93		1,012
Total	$	92,498	$	—	$	—	$	92,498	$	1,518	$	18,968

(1)Fair value losses recognized, net on other real estate owned include valuation adjustments and charge-offs during the respective period.

Individually assessed loans—In accordance with ASC 326, the allowance for credit losses for loans and other financial assets held at amortized cost should be measured on a collective or pooled basis when such assets exhibit similar risk characteristics. In instances in which a financial asset does not exhibit similar risk characteristics to a pool, the Company is required to measure such allowance for credit losses on an individual asset basis. For the Company's loan portfolio, nonaccrual loans and TDRs are considered to not exhibit similar risk characteristics as pools and thus are individually assessed. Credit losses are measured by estimating the fair value of the loan based on the present value of expected cash flows, the market price of the loan, or the fair value of the underlying collateral. Individually assessed loans are considered a fair value measurement where an allowance for credit loss is established based on the fair value of collateral. Appraised values on relevant real estate properties, which may require adjustments to market-based valuation inputs, are generally used on foreclosure probable and collateral-dependent loans within the real estate portfolios.

The Company’s Managed Assets Division is primarily responsible for the valuation of Level 3 inputs of individually assessed loans. For more information on individually assessed loans refer to Note 6 – Allowance for Credit Losses. At September 30, 2021, the Company had $109.0 million of individually assessed loans classified as Level 3. Of the $109.0 million of individually assessed loans, $78.7 million were measured at fair value based on the underlying collateral of the loan as shown in the table above. The remaining $30.3 million were valued based on discounted cash flows in accordance with ASC 310.

Other real estate owned —Other real estate owned is comprised of real estate acquired in partial or full satisfaction of loans and is included in other assets. Other real estate owned is recorded at its estimated fair value less estimated selling costs at the date of transfer, with any excess of the related loan balance over the fair value less expected selling costs charged to the allowance for loan losses. Subsequent changes in value are reported as adjustments to the carrying amount and are recorded in other non-interest expense. Gains and losses upon sale, if any, are also charged to other non-interest expense. Fair value is generally based on third party appraisals and internal estimates that are adjusted by a discount representing the estimated cost of sale and is therefore considered a Level 3 valuation.

The Company’s Managed Assets Division is primarily responsible for the valuation of Level 3 inputs for other real estate owned. At September 30, 2021, the Company had $13.8 million of other real estate owned classified as Level 3. The unobservable input applied to other real estate owned relates to the 10% reduction to the appraisal value representing the estimated cost of sale of the foreclosed property. A higher discount for the estimated cost of sale results in a decreased carrying value.

The valuation techniques and significant unobservable inputs used to measure both recurring and non-recurring Level 3 fair value measurements at September 30, 2021 were as follows:

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(Dollars in thousands)	Fair Value		Valuation Methodology	Significant Unobservable Input	Range of Inputs	Weighted Average of Inputs	Impact to valuation from an increased or higher input value
Measured at fair value on a recurring basis:
Municipal Securities	$	117,724	Bond pricing	Equivalent rating	BBB-AA+	N/A	Increase
Loans held-for-investment	12,132		Discounted cash flows	Discount rate	2.88%	2.88%	Decrease
				Credit discount	0%-3%	0.51%	Decrease
				Constant prepayment rate (CPR)	12.77%	12.77%	Decrease
MSRs	133,552		Discounted cash flows	Discount rate	7%-19%	9.82%	Decrease
				Constant prepayment rate (CPR)	6%-92%	12.77%	Decrease
				Cost of servicing	$70-$200	$75	Decrease
				Cost of servicing - delinquent	$200-$1,000	$287	Decrease
Derivatives	14,612		Discounted cash flows	Pull-through rate	1%-100%	86.28%	Increase
Measured at fair value on a non-recurring basis:
Individually assessed loans - foreclosure probable and collateral-dependent	$	78,653	Appraisal value	Appraisal adjustment - cost of sale	10%	10.00%	Decrease
Other real estate owned	13,845		Appraisal value	Appraisal adjustment - cost of sale	10%	10.00%	Decrease

The Company is required under applicable accounting guidance to report the fair value of all financial instruments on the Consolidated Statements of Condition, including those financial instruments carried at cost. The table below presents the carrying amounts and estimated fair values of the Company’s financial instruments as of the dates shown:

	At September 30, 2021				At December 31, 2020				At September 30, 2020
	Carrying		Fair		Carrying		Fair		Carrying		Fair
(In thousands)	Value		Value		Value		Value		Value		Value
Financial Assets:
Cash and cash equivalents	$	462,299	$	462,299	$	322,474	$	322,474	$	308,695	$	308,695
Interest-bearing deposits with banks	5,232,315		5,232,315		4,802,527		4,802,527		3,825,823		3,825,823
Available-for-sale securities	2,373,478		2,373,478		3,055,839		3,055,839		2,946,459		2,946,459
Held-to-maturity securities	2,736,722		2,699,480		579,138		593,767		560,267		575,947
Trading account securities	1,103		1,103		671		671		1,720		1,720
Equity securities with readily determinable fair value	88,193		88,193		90,862		90,862		54,398		54,398
FHLB and FRB stock, at cost	135,408		135,408		135,588		135,588		135,568		135,568
Brokerage customer receivables	26,378		26,378		17,436		17,436		16,818		16,818
Mortgage loans held-for-sale, at fair value	925,312		925,312		1,272,090		1,272,090		959,671		959,671
Loans held-for-investment, at fair value	30,979		30,979		55,134		55,134		253,515		253,515
Loans held-for-investment, at amortized cost	33,233,064		33,276,688		32,023,939		31,871,683		31,882,040		31,723,559
Nonqualified deferred compensation assets	15,797		15,797		15,398		15,398		14,197		14,197
Derivative assets	191,612		191,612		278,423		278,423		321,488		321,488
Accrued interest receivable and other	272,293		272,293		272,339		272,339		272,940		272,940
Total financial assets	$	45,724,953	$	45,731,335	$	42,921,858	$	42,784,231	$	41,553,599	$	41,410,798
Financial Liabilities
Non-maturity deposits	$	35,822,012	$	35,822,012	$	32,116,023	$	32,116,023	$	30,778,127	$	30,778,127
Deposits with stated maturities	4,130,546		4,124,199		4,976,628		4,969,849		5,066,295		5,063,732
FHLB advances	1,241,071		1,164,168		1,228,429		1,172,315		1,228,422		1,207,203
Other borrowings	504,527		504,527		518,928		518,928		507,395		507,395
Subordinated notes	436,811		474,171		436,506		473,093		436,385		473,825
Junior subordinated debentures	253,566		207,675		253,566		204,713		253,566		208,333
Derivative liabilities	161,314		161,314		288,465		288,465		326,990		326,990
Accrued interest payable	15,030		15,030		15,645		15,645		21,310		21,310
Total financial liabilities	$	42,564,877	$	42,473,096	$	39,834,190	$	39,759,031	$	38,618,490	$	38,586,915

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Not all the financial instruments listed in the table above are subject to the disclosure provisions of ASC Topic 820, as certain assets and liabilities result in their carrying value approximating fair value. These include cash and cash equivalents, interest bearing deposits with banks, brokerage customer receivables, FHLB and FRB stock, accrued interest receivable and accrued interest payable and non-maturity deposits.

The following methods and assumptions were used by the Company in estimating fair values of financial instruments that were not previously disclosed.

Held-to-maturity securities. Held-to-maturity securities include U.S. Government-sponsored agency securities and municipal bonds issued by various municipal government entities primarily located in the Chicago metropolitan area and southern Wisconsin. Fair values for held-to-maturity securities are typically based on prices obtained from independent pricing vendors. In accordance with ASC 820, the Company has generally categorized these held-to-maturity securities as a Level 2 fair value measurement. Fair values for certain other held-to-maturity securities are based on the bond pricing methodology discussed previously related to certain available-for-sale securities. In accordance with ASC 820, the Company has categorized these held-to-maturity securities as a Level 3 fair value measurement.

Loans held-for-investment, at amortized cost. Fair values are estimated for portfolios of loans with similar financial characteristics. Loans are analyzed by type such as commercial, residential real estate, etc. Each category is further segmented by interest rate type (fixed and variable) and term. For variable-rate loans that reprice frequently, estimated fair values are based on carrying values. The fair value of residential loans is based on secondary market sources for securities backed by similar loans, adjusted for differences in loan characteristics. The fair value for other fixed rate loans is estimated by discounting scheduled cash flows through the estimated maturity using estimated market discount rates that reflect credit and interest rate risks inherent in the loan. In accordance with ASC 820, the Company has categorized loans as a Level 3 fair value measurement.

Deposits with stated maturities. The fair value of certificates of deposit is based on the discounted value of contractual cash flows. The discount rate is estimated using the rates currently in effect for deposits of similar remaining maturities. In accordance with ASC 820, the Company has categorized deposits with stated maturities as a Level 3 fair value measurement.

FHLB advances. The fair value of FHLB advances is obtained from the FHLB which uses a discounted cash flow analysis based on current market rates of similar maturity debt securities to discount cash flows. In accordance with ASC 820, the Company has categorized FHLB advances as a Level 3 fair value measurement.

Subordinated notes. The fair value of the subordinated notes is based on a market price obtained from an independent pricing vendor. In accordance with ASC 820, the Company has categorized subordinated notes as a Level 2 fair value measurement.

Junior subordinated debentures. The fair value of the junior subordinated debentures is based on the discounted value of contractual cash flows. In accordance with ASC 820, the Company has categorized junior subordinated debentures as a Level 3 fair value measurement.

(16) Stock-Based Compensation Plans

In May 2015, the Company’s shareholders approved the 2015 Stock Incentive Plan (“the 2015 Plan”) which provides for the issuance of up to 5,485,000 shares of common stock. The 2015 Plan replaced the 2007 Stock Incentive Plan (“the 2007 Plan”) which replaced the 1997 Stock Incentive Plan (“the 1997 Plan”). The 2015 Plan, the 2007 Plan and the 1997 Plan are collectively referred to as “the Plans.” The 2015 Plan has substantially similar terms to the 2007 Plan and the 1997 Plan. Awards granted under the Plans for which common shares are not issued by reason of cancellation, forfeiture, lapse of such award or settlement of such award in cash, are again available under the 2015 Plan. All grants made after the approval of the 2015 Plan are made pursuant to the 2015 Plan. As of September 30, 2021, approximately 976,000 shares were available for future grants assuming the maximum number of shares are issued for the performance awards outstanding. The Plans cover substantially all employees of Wintrust. The Compensation Committee of the Board of Directors administers all stock-based compensation programs and authorizes all awards granted pursuant to the Plans.

The Plans permit the grant of incentive stock options, non-qualified stock options, stock appreciation rights, stock awards, restricted share or unit awards, performance awards and other incentive awards valued in whole or in part by reference to the Company’s common stock, all on a stand alone, combination or tandem basis. The Company historically awarded stock-based compensation in the form of time-vested non-qualified stock options and time-vested restricted share unit awards (“restricted shares”). The grants of options provide for the purchase of shares of the Company’s common stock at the fair market value of the stock on the date the options are granted. Stock options generally vest ratably over periods of three to five years and have a

51

maximum term of seven years from the date of grant. Restricted shares entitle the holders to receive, at no cost, shares of the Company’s common stock. Restricted shares generally vest over periods of one to five years from the date of grant.

Beginning in 2011, the Company has awarded annual grants under the Long-Term Incentive Program (“LTIP”), which is administered under the Plans. The LTIP is designed in part to align the interests of management with the interests of shareholders, foster retention, create a long-term focus based on sustainable results and provide participants with a target long-term incentive opportunity. LTIP grants in 2021 consisted of a combination of performance-based stock awards with a performance condition metric, performance-based stock awards with a market condition metric and time-vested restricted shares, and in 2020 consisted of a combination of performance-based stock awards and performance-based cash awards (both with a performance condition metric) and time-vested restricted shares. LTIP grants from 2017 through 2019 consisted of a combination of performance-based stock awards and performance-based cash awards, and prior to 2017, nonqualified stock options were in the mix of award types. Stock options granted under the LTIP have a term of seven years and generally vested equally over three years based on continued service. Performance-based stock and cash awards granted under the LTIP are contingent upon the achievement of pre-established long-term performance goals set in advance by the Compensation Committee over a three-year period starting at the beginning of each calendar year. Performance-based stock awards with a market condition metric are contingent on the total shareholder return performance over a three-year period starting at the beginning of each calendar year relative to the KBW Regional Bank Index. These performance awards are granted at a target level, and based on the Company’s achievement of the pre-established long-term goals, the actual payouts can range from 0% to a maximum of 150% of the target award. The awards typically vest in the quarter after the end of the performance period upon certification of the payout by the Compensation Committee of the Board of Directors. Holders of performance-based stock awards are entitled to receive, at no cost, the shares earned based on the achievement of the pre-established long-term goals.

Holders of restricted share awards and performance-based stock awards received under the Plans are not entitled to vote or receive cash dividends (or cash payments equal to the cash dividends) on the underlying common shares until the awards are vested and shares are issued. Shares that are vested but not issuable pursuant to deferred compensation arrangements accrue additional shares based on the value of dividends otherwise paid. Except in limited circumstances, these awards are canceled upon termination of employment without any payment of consideration by the Company.

Stock-based compensation is measured as the fair value of an award on the date of grant, and the measured cost is recognized over the period which the recipient is required to provide service in exchange for the award. The fair value of restricted share and performance-based stock awards with a performance condition metric is determined based on the average of the high and low trading prices on the grant date. The fair value of performance stock awards with a market condition metric is estimated using a Monte Carlo simulation model and the fair value of stock options is estimated using a Black-Scholes option-pricing model. The Monte Carlo simulation model and the Black-Scholes option-pricing model require the input of highly subjective assumptions and are sensitive to changes in the award's expected life and the price volatility of the underlying stock, which can materially affect the fair value estimates. Management periodically reviews and adjusts the assumptions used to calculate the fair value of such awards when granted. No options have been granted since 2016.

Stock based compensation is recognized based upon the number of awards that are ultimately expected to vest, taking into account expected forfeitures. In addition, for performance-based awards with a performance metric, an estimate is made of the number of shares expected to vest as a result of actual performance against the performance criteria in the award to determine the amount of compensation expense to recognize. The estimate is re-evaluated quarterly and total compensation expense is adjusted for any change in estimate in the current period. Stock-based compensation expense recognized in the Consolidated Statements of Income was $3.2 million in the third quarter of 2021 and $1.3 million in the third quarter of 2020, and $9.4 million and $(1.0) million in the 2021 and 2020 year-to-date periods, respectively.

A summary of the Company's stock option activity for the nine months ended September 30, 2021 and September 30, 2020 is presented below:

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Stock Options	Common Shares	Weighted Average Strike Price		Remaining Contractual Term (1)	Intrinsic Value (2) (in thousands)
Outstanding at January 1, 2021	520,663	$	42.47
Granted	—	—
Exercised	(245,286)	43.05
Forfeited or canceled	(590)	46.86
Outstanding at September 30, 2021	274,787	$	41.95	1.4	$	10,557
Exercisable at September 30, 2021	273,238	$	41.92	1.4	$	10,506

Stock Options	Common Shares	Weighted Average Strike Price		Remaining Contractual Term (1)	Intrinsic Value (2) (in thousands)
Outstanding at January 1, 2020	755,332	$	42.43
Granted	—	—
Exercised	(104,703)	38.71
Forfeited or canceled	(5,608)	44.34
Outstanding at September 30, 2020	645,021	$	43.02	1.9	$	52
Exercisable at September 30, 2020	637,120	$	43.01	1.8	$	52

(1)Represents the remaining weighted average contractual life in years.

(2)Aggregate intrinsic value represents the total pre-tax intrinsic value (i.e., the difference between the Company's stock price on the last trading day of the quarter and the option exercise price, multiplied by the number of shares) that would have been received by the option holders if they had exercised their options on the last day of the quarter. Options with exercise prices above the stock price on the last trading day of the quarter are excluded from the calculation of intrinsic value. The intrinsic value will change based on the fair market value of the Company's stock.

The aggregate intrinsic value of options exercised during the nine months ended September 30, 2021 and September 30, 2020, was $7.9 million and $2.7 million, respectively. Cash received from option exercises under the Plans for the nine months ended September 30, 2021 and September 30, 2020 was $10.6 million and $4.1 million, respectively.

A summary of the Plans' restricted share activity for the nine months ended September 30, 2021 and September 30, 2020 is presented below:

	Nine months ended September 30, 2021			Nine months ended September 30, 2020
Restricted Shares	Common Shares	Weighted Average Grant-Date Fair Value		Common Shares	Weighted Average Grant-Date Fair Value
Outstanding at January 1	234,794	$	59.02	144,328	$	60.37
Granted	268,429	63.22		113,156	61.32
Vested and issued	(13,120)	72.01		(13,917)	77.77
Forfeited or canceled	(12,624)	63.55		(6,547)	73.71
Outstanding at September 30	477,479	$	60.90	237,020	$	59.43
Vested, but not issuable at September 30	95,215	$	52.39	93,514	$	52.08

A summary of the Plans' performance-based stock award activity, based on the target level of the awards, for the nine months ended September 30, 2021 and September 30, 2020 is presented below:

	Nine months ended September 30, 2021			Nine months ended September 30, 2020
Performance-based Stock	Common Shares	Weighted Average Grant-Date Fair Value		Common Shares	Weighted Average Grant-Date Fair Value
Outstanding at January 1	482,608	$	71.15	465,515	$	74.37
Granted	208,732	58.97		169,864	63.62
Added by performance factor at vesting	—	—		48,831	72.59
Vested and issued	—	—		(180,789)	72.59
Expired, canceled or forfeited	(132,998)	86.51		(18,727)	72.66
Outstanding at September 30	558,342	$	62.94	484,694	$	71.15
Vested, but deferred at September 30	35,040	$	43.53	34,441	$	43.07

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(17) Shareholders’ Equity and Earnings Per Share

Series D Preferred Stock

In June 2015, the Company issued and sold 5,000,000 shares of fixed-to-floating non-cumulative perpetual preferred stock, Series D, liquidation preference $25 per share (the “Series D Preferred Stock”) for $125.0 million in a public offering. When, as and if declared, dividends on the Series D Preferred Stock are payable quarterly in arrears at a fixed rate of 6.50% per annum from the original issuance date to, but excluding, July 15, 2025, and from (and including) that date at a floating rate equal to three-month LIBOR plus a spread of 4.06% per annum.

Series E Preferred Stock

In May 2020, the Company issued 11,500 shares of fixed-rate reset non-cumulative perpetual preferred stock, Series E, liquidation preference $25,000 per share (the “Series E Preferred Stock”) as part of a $287.5 million public offering of 11,500,000 depositary shares, each representing a 1/1,000th interest in a share of Series E Preferred Stock. When, as and if declared, dividends on the Series E Preferred Stock are payable quarterly in arrears at a fixed rate of 6.875% per annum starting on October 15, 2020.

Other

At the January 2021 Board of Directors meeting, a quarterly cash dividend of $0.31 per share ($1.24 on an annualized basis) was declared. It was paid on February 25, 2021 to shareholders of record as of February 11, 2021. At the April 2021 Board of Directors meeting, a quarterly cash dividend of $0.31 per share ($1.24 on an annualized basis) was declared. It was paid on May 20, 2021 to shareholders of record as of May 6, 2021. At the July 2021 Board of Directors meeting, a quarterly cash dividend of $0.31 per share ($1.24 on an annualized basis) was declared. It was paid on August 19, 2021 to shareholders of record as of August 5, 2021.

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Accumulated Other Comprehensive Income (Loss)

The following tables summarize the components of other comprehensive income (loss), including the related income tax effects, and the related amount reclassified to net income for the periods presented (in thousands).

	Accumulated Unrealized Gains (Losses) on Securities		Accumulated Unrealized Gains (Losses) on Derivative Instruments		Accumulated Foreign Currency Translation Adjustments		Total Accumulated Other Comprehensive Income (Loss)
Balance at July 1, 2021	$	30,189	$	7,720	$	(27,776)	$	10,133
Other comprehensive (loss) income during the period, net of tax, before reclassifications	(10,374)		1,631		(4,650)		(13,393)
Amount reclassified from accumulated other comprehensive income (loss) into net income, net of tax	(256)		4,973		—		4,717
Amount reclassified from accumulated other comprehensive income (loss) related to amortization of unrealized gains on investment securities transferred to held-to-maturity from available-for-sale, net of tax	(40)		—		—		(40)
Net other comprehensive (loss) income during the period, net of tax	$	(10,670)	$	6,604	$	(4,650)	$	(8,716)
Balance at September 30, 2021	$	19,519	$	14,324	$	(32,426)	$	1,417
Balance at January 1, 2021	$	70,737	$	(23,090)	$	(32,265)	$	15,382
Other comprehensive (loss) income during the period, net of tax, before reclassifications	(50,265)		22,493		(161)		(27,933)
Amount reclassified from accumulated other comprehensive income (loss) into net income, net of tax	(837)		14,921		—		14,084
Amount reclassified from accumulated other comprehensive income (loss) related to amortization of unrealized gains on investment securities transferred to held-to-maturity from available-for-sale, net of tax	(116)		—		—		(116)
Net other comprehensive (loss) income during the period, net of tax	$	(51,218)	$	37,414	$	(161)	$	(13,965)
Balance at September 30, 2021	$	19,519	$	14,324	$	(32,426)	$	1,417

Balance at July 1, 2020	$	85,506	$	(43,606)	$	(42,497)	$	(597)
Other comprehensive (loss) income during the period, net of tax, before reclassifications	(10,682)		3,466		2,891		(4,325)
Amount reclassified from accumulated other comprehensive income (loss) into net income, net of tax	(36)		4,157		—		4,121
Amount reclassified from accumulated other comprehensive income (loss) related to amortization of unrealized gains on investment securities transferred to held-to-maturity from available-for-sale, net of tax	(40)		—		—		(40)
Net other comprehensive (loss) income during the period, net of tax	$	(10,758)	$	7,623	$	2,891	$	(244)
Balance at September 30, 2020	$	74,748	$	(35,983)	$	(39,606)	$	(841)
Balance at January 1, 2020	$	14,982	$	(13,141)	$	(36,519)	$	(34,678)
Other comprehensive income (loss) during the period, net of tax, before reclassifications	60,043		(31,796)		(3,087)		25,160
Amount reclassified from accumulated other comprehensive income (loss) into net income, net of tax	(146)		8,954		—		8,808
Amount reclassified from accumulated other comprehensive income (loss) related to amortization of unrealized gains on investment securities transferred to held-to-maturity from available-for-sale, net of tax	(131)		—		—		(131)
Net other comprehensive income (loss) during the period, net of tax	$	59,766	$	(22,842)	$	(3,087)	$	33,837
Balance at September 30, 2020	$	74,748	$	(35,983)	$	(39,606)	$	(841)

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	Amount Reclassified from Accumulated Other Comprehensive Income (Loss) for the
Details Regarding the Component of Accumulated Other Comprehensive Income (Loss)	Three Months Ended				Nine Months Ended				Impacted Line on the Consolidated Statements of Income
	September 30,				September 30,
	2021		2020		2021		2020
Accumulated unrealized gains on securities
Gains included in net income	$	350	$	50	$	1,144	$	200	Gains (losses) on investment securities, net
	350		50		1,144		200		Income before taxes
Tax effect	(94)		(14)		(307)		(54)		Income tax expense
Net of tax	$	256	$	36	$	837	$	146	Net income
Accumulated unrealized gains on derivative instruments
Amount reclassified to interest expense on deposits	$	4,947	$	3,884	$	14,898	$	8,806	Interest on deposits
Amount reclassified to interest expense on other borrowings	636		740		1,958		1,458		Interest on other borrowings
Amount reclassified to interest expense on junior subordinated debentures	1,197		1043		3,486		1944		Interest on junior subordinated debentures
	(6,780)		(5,667)		(20,342)		(12,208)		Income before taxes
Tax effect	1,807		1,510		5,421		3,254		Income tax expense
Net of tax	$	(4,973)	$	(4,157)	$	(14,921)	$	(8,954)	Net income

Earnings per Share

The following table shows the computation of basic and diluted earnings per share for the periods indicated:

		Three Months Ended				Nine Months Ended
(In thousands, except per share data)		September 30, 2021		September 30, 2020		September 30, 2021		September 30, 2020
Net income		$	109,137	$	107,315	$	367,394	$	191,786
Less: Preferred stock dividends		6,991		10,286		20,973		14,386
Net income applicable to common shares	(A)	$	102,146	$	97,029	$	346,421	$	177,400
Weighted average common shares outstanding	(B)	57,000		57,597		56,985		57,595
Effect of dilutive potential common shares
Common stock equivalents		753		449		728		469
Weighted average common shares and effect of dilutive potential common shares	(C)	57,753		58,046		57,713		58,064
Net income per common share:
Basic	(A/B)	$	1.79	$	1.68	$	6.08	$	3.08
Diluted	(A/C)	$	1.77	$	1.67	$	6.00	$	3.06

Potentially dilutive common shares can result from stock options, restricted stock unit awards, stock warrants and shares to be issued under the Employee Stock Purchase Plan and the Directors Deferred Fee and Stock Plan, being treated as if they had been either exercised or issued, computed by application of the treasury stock method. While potentially dilutive common shares are typically included in the computation of diluted earnings per share, potentially dilutive common shares are excluded from this computation in periods in which the effect would reduce the loss per share or increase the income per share.

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(18) Subsequent Events

On November 1, 2021 the Company announced that it had agreed to purchase approximately $570 million of loans from the Allstate Corporation. The loan portfolio is comprised of approximately 1,800 loans to Allstate agents nationally.

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ITEM 2

MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL

CONDITION AND RESULTS OF OPERATIONS

The following discussion and analysis of the financial condition of Wintrust Financial Corporation and its subsidiaries (collectively, "Wintrust" or the "Company") as of September 30, 2021 compared with December 31, 2020 and September 30, 2020, and the results of operations for the three and nine month period ended September 30, 2021 and September 30, 2020, 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, 2020 ("2020 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.

Introduction

Wintrust is a financial holding company that provides traditional community banking services, primarily in the Chicago metropolitan area, southern Wisconsin and northwest Indiana, and operates other financing businesses on a national basis and in Canada through several non-bank business units. Additionally, Wintrust offers a full array of wealth management services primarily to customers in the Chicago metropolitan area, southern Wisconsin and northwest Indiana.

Overview

Impact of COVID-19

In March 2020, the outbreak of COVID-19 was recognized as a global pandemic by the World Health Organization, resulting in unprecedented uncertainty and volatility in world-wide financial markets. Governments' actions calling for shelter in place and social distancing led to rapid changes in business revenues, increased unemployment, and negatively impacted consumer activity, all of which have impacted the Company. Although vaccines are now being widely distributed, the COVID-19 pandemic, including the emergence of variant strains of the virus, may continue to impact the Company's future results.

The Company activated its pandemic response plan in early March 2020, as well as applicable elements of its business continuity plan. In order to protect the health of our customers and employees, and in accordance with applicable government directives, we modified certain of our business protocols to direct employees to work from home unless their role required them to be on site, in which case we have implemented enhanced safety measures including social distancing, enhanced cleaning and sanitization, and certain personal protective equipment. With the phased reopening of certain state and municipal areas, the Company implemented a comprehensive plan that permits certain remote employees to return to their respective workplaces, where enhanced safety measures also have been implemented. At present, however, the majority of the Company’s workforce continues to work remotely on a nearly daily basis.

On March 27, 2020, the Coronavirus Aid, Relief, and Economic Security ("CARES") Act was enacted. The CARES Act includes appropriations and other measures designed to address the impact of the COVID-19 pandemic, including the Paycheck Protection Program ("PPP"), which is designed to aid eligible small and medium-sized businesses through federally-guaranteed loans distributed through certain banks, under the administration of the Small Business Administration ("SBA"). From the date the Company began accepting applications, April 3, 2020, through June 30, 2021, the Company secured authorization from the SBA and funded over 19,400 PPP loans with a carrying balance of approximately $4.8 billion. PPP loans are forgivable under certain circumstances, including the borrower’s use of certain loan proceeds to fund employee payroll during a specific period (e.g., eight weeks, 24 weeks) following disbursement of the borrower’s PPP loan. From the loans originated under the program, the Company has generated net fees of $146.0 million to be recognized over the life of the PPP loans adjusted for estimated prepayments.

All of our three primary business segments (community banking, specialty finance and wealth management), have been uniquely impacted and we expect will continue to be impacted by the COVID-19 pandemic, requiring the implementation of certain responses as circumstances evolve.  As non-exclusive examples of such impacts, our community banking business, including our mortgage business, has received borrower requests for temporary payment relief including payment deferrals. As of September 30, 2021, loans totaling approximately $72.0 million were modified as a result of COVID-19 disruption to our borrowers. Our insurance premium finance business is impacted by certain state legislation prohibiting canceling of insurance policies for designated periods. Our wealth management business is impacted by increased stock market volatility.

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Given the continued uncertainty regarding future economic conditions, the Company has taken a number of actions to help ensure that it has adequate liquidity and capital to manage through the COVID-19 pandemic, including issuing fixed-rate reset non-cumulative perpetual preferred stock, Series E, liquidation preference $25,000 per share (the “Series E Preferred Stock”) as part of a public offering of depositary shares, each representing a 1/1,000th interest in a share of Series E Preferred Stock (the “Depositary Shares”). We believe the Company currently has adequate liquidity and capital to effectively manage through the COVID-19 pandemic. However, we will continue to prudently evaluate available liquidity sources if necessary.

We continue to monitor the impact of COVID-19 closely; however, the extent to which the COVID-19 pandemic will impact our operations and financial conditions remains highly uncertain. Please refer to Part II, Item 1A, “Risk Factors” of this Form 10-Q for additional information.

Third Quarter Highlights

The Company recorded net income of $109.1 million for the third quarter of 2021 compared to $107.3 million in the third quarter of 2020. The results for the third quarter of 2021 demonstrate continued momentum on our operating strengths, including significant organic loan and deposit growth despite significant payoffs through forgiveness within the Company’s PPP portfolio, increased net interest income as a result of growth in earning assets, record wealth management revenue and a release of credit reserves attributable to positive changes in the macroeconomic forecasts in addition to improvement in portfolio characteristics, partially offset by lower production by the Company’s mortgage banking business.

The Company increased its loan portfolio from $32.1 billion at September 30, 2020 and $32.1 billion at December 31, 2020 to $33.3 billion at September 30, 2021. The increase in the current period compared to the prior periods was primarily a result of organic growth in several portfolios, including the commercial, industrial and other (excluding PPP loans), commercial real estate, residential real estate loans held for investment, commercial insurance premium finance receivable and life insurance premium finance receivables portfolios. For more information regarding changes in the Company’s loan portfolio, see Financial Condition – Interest Earning Assets and Note 5 - Loans of the Consolidated Financial Statements in Item 1 of this report.

The Company recorded net interest income of $287.5 million in the third quarter of 2021 compared to $255.9 million in the third quarter of 2020. This increase in net interest income recorded in the third quarter of 2021 compared to the third quarter of 2020 resulted primarily from growth in earning assets, specifically a $1.4 billion increase in average loans. The increase in average earnings assets and runoff of higher rate deposits resulted in a stabilized net interest margin between periods. Net interest margin of 2.58% (2.59% on a fully taxable-equivalent basis, non-GAAP) in the third quarter of 2021 compared favorably to 2.56% (2.57% on a fully taxable-equivalent basis, non-GAAP) in the third quarter of 2020, primarily due to lower rates on deposits from the declining interest rate environment (see "Net Interest Income" for further detail).

Non-interest income totaled $136.5 million in the third quarter of 2021 compared to $170.6 million in the third quarter of 2020. This decrease was primarily the result of lower mortgage banking revenue (see “Non-Interest Income” for further detail).

Non-interest expense totaled $282.1 million in the third quarter of 2021, increasing $17.9 million, or 7%, compared to the third quarter of 2020. The increase compared to the third quarter of 2020 was primarily attributable to higher salaries and employee benefits, increased software and equipment costs, and greater advertising and marketing expense (see “Non-Interest Expense” for further detail).

Management considers the maintenance of adequate liquidity to be important to the management of risk. Accordingly, during the third quarter of 2021, 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. At September 30, 2021, the Company had approximately $5.7 billion in overnight liquid funds and interest-bearing deposits with banks.

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RESULTS OF OPERATIONS

Earnings Summary

The Company’s key operating measures and growth rates for the three and nine months ended September 30, 2021, as compared to the same period last year, are shown below:

	Three months ended
(Dollars in thousands, except per share data)	September 30, 2021			September 30, 2020			Percentage (%) or Basis Point (bp) Change
Net income	$	109,137		$	107,315		2	%
Pre-tax income, excluding provision for credit losses (non-GAAP) (2)	141,826			162,310			(13)
Net income per common share—Diluted	1.77			1.67			6
Net revenue (1)	423,970			426,529			(1)
Net interest income	287,496			255,936			12
Net interest margin	2.58		%	2.56		%	2	bps
Net interest margin - fully taxable-equivalent (non-GAAP) (2)	2.59			2.57			2
Net overhead ratio (3)	1.22			0.87			35
Return on average assets	0.92			0.99			(7)
Return on average common equity	10.31			10.66			(35)
Return on average tangible common equity (non-GAAP) (2)	12.62			13.43			(81)

	Nine months ended
(Dollars in thousands, except per share data)	September 30, 2021			September 30, 2020			Percentage (%) or Basis Point (bp) Change
Net income	$	367,394		$	191,786		92	%
Pre-tax income, excluding provision for credit losses (non-GAAP) (2)	432,189			468,110			(8)
Net income per common share—Diluted	6.00			3.06			96
Net revenue (1)	1,281,334			1,226,338			4
Net interest income	828,981			780,510			6
Net interest margin	2.58		%	2.79		%	(21)	bps
Net interest margin - fully taxable equivalent (non-GAAP) (2)	2.59		%	2.80		%	(21)
Net overhead ratio (3)	1.15		%	1.03		%	12
Return on average assets	1.07		%	0.63		%	44
Return on average common equity	12.05		%	6.56		%	549
Return on average tangible common equity (non-GAAP) (2)	14.82		%	8.38		%	644
At end of period
Total assets	$	47,832,271		$	43,731,718		9	%
Total loans, excluding loans held-for-sale	33,264,043			32,135,555			4
Total loans, including loans held-for-sale	34,189,355			33,095,226			3
Total deposits	39,952,558			35,844,422			11
Total shareholders’ equity	4,410,317			4,074,089			8
Book value per common share (2)	$	70.19		$	63.57		10
Tangible common book value per share (2)	58.32			51.70			13
Market price per common share	80.37			40.05			101
Allowance for loan and unfunded lending-related commitment losses to total loans	0.89		%	1.21		%	(32)	bps

(1)Net revenue is net interest income plus non-interest income.

(2)See following section titled, “Supplemental Non-GAAP Financial Measures/Ratios” for additional information on this performance measure/ratio.

(3)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.

Certain returns, yields, performance ratios, and quarterly growth rates are “annualized” throughout this report 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, balance sheet growth rates are most often expressed in terms of an annual rate. As such, 5% growth during a quarter would represent an annualized growth rate of 20%.

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SUPPLEMENTAL NON-GAAP FINANCIAL MEASURES/RATIOS

The accounting and reporting policies of the Company conform to generally accepted accounting principles (“GAAP”) in the United States and prevailing practices in the banking industry. However, certain non-GAAP performance measures and ratios are used by management to evaluate and measure the Company’s performance. These include taxable-equivalent net interest income (including its individual components), taxable-equivalent net interest margin (including its individual components), the taxable-equivalent efficiency ratio, tangible common equity ratio, tangible book value per common share, return on average tangible common equity and pre-tax income, excluding provision for credit losses. Management believes that these measures and ratios provide users of the Company’s financial information a more meaningful view of the performance of the Company's interest-earning assets and interest-bearing liabilities and of the Company’s operating efficiency. Other financial holding companies may define or calculate these measures and ratios differently.

Management reviews yields on certain asset categories and the net interest margin of the Company and its banking subsidiaries on a fully taxable-equivalent basis. In this non-GAAP presentation, net interest income is adjusted to reflect tax-exempt interest income on an equivalent before-tax basis using tax rates effective as of the end of the period. This measure ensures comparability of net interest income arising from both taxable and tax-exempt sources. Net interest income on a fully taxable-equivalent basis is also used in the calculation of the Company’s efficiency ratio. The efficiency ratio, which is calculated by dividing non-interest expense by total taxable-equivalent net revenue (less securities gains or losses), measures how much it costs to produce one dollar of revenue. Securities gains or losses are excluded from this calculation to better match revenue from daily operations to operational expenses. Management considers the tangible common equity ratio and tangible book value per common share as useful measurements of the Company’s equity. The Company references the return on average tangible common equity as a measurement of profitability. Management considers pre-tax income, excluding provision for credit losses, as a useful measurement of the Company’s core net income.

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A reconciliation of certain non-GAAP performance measures and ratios used by the Company to evaluate and measure the Company’s performance to the most directly comparable GAAP financial measures is shown below:

	Three Months Ended									Nine Months Ended
	September 30,			June 30,			September 30,			September 30,			September 30,
(Dollars and shares in thousands)	2021			2021			2020			2021			2020
Reconciliation of Non-GAAP Net Interest Margin and Efficiency Ratio:
(A) Interest Income (GAAP)	$	322,457		$	319,579		$	311,156		$	947,505		$	985,039
Taxable-equivalent adjustment:
- Loans	411			415			481			1,210			1,917
- Liquidity management assets	492			494			546			1,486			1,635
- Other earning assets	—			—			1			—			6
(B) Interest Income (non-GAAP)	$	323,360		$	320,488		$	312,184		$	950,201		$	988,597
(C) Interest Expense (GAAP)	34,961			39,989			55,220			118,524			204,529
(D) Net Interest Income (GAAP) (A minus C)	$	287,496		$	279,590		$	255,936		$	828,981		$	780,510
(E) Net Interest Income, fully taxable-equivalent (non-GAAP) (B minus C)	$	288,399		$	280,499		$	256,964		$	831,677		$	784,068
Net interest margin (GAAP)	2.58		%	2.62		%	2.56		%	2.58		%	2.79		%
Net interest margin, fully taxable-equivalent (non-GAAP)	2.59			2.63			2.57			2.59			2.80
(F) Non-interest income	$	136,474		$	129,373		$	170,593		$	452,353		$	445,828
(G) (Losses) gains on investment securities, net	(2,431)			1,285			411			8			(3,140)
(H) Non-interest expense	282,144			280,112			264,219			849,145			758,228
Efficiency ratio (H/(D+F-G))	66.17		%	68.71		%	62.01		%	66.27		%	61.67		%
Efficiency ratio (non-GAAP) (H/(E+F-G))	66.03			68.56			61.86			66.13			61.49
Reconciliation of Non-GAAP Tangible Common Equity Ratio:
Total shareholders’ equity (GAAP)	$	4,410,317		$	4,339,011		$	4,074,089
Less: Non-convertible preferred stock (GAAP)	(412,500)			(412,500)			(412,500)
Less: Intangible assets (GAAP)	(675,910)			(678,333)			(683,314)
(I) Total tangible common shareholders’ equity (non-GAAP)	$	3,321,907		$	3,248,178		$	2,978,275
(J) Total assets (GAAP)	$	47,832,271		$	46,738,450		$	43,731,718
Less: Intangible assets (GAAP)	(675,910)			(678,333)			(683,314)
(K) Total tangible assets (non-GAAP)	$	47,156,361		$	46,060,117		$	43,048,404
Common equity to assets ratio (GAAP) (L/J)	8.4		%	8.4		%	8.4		%
Tangible common equity ratio (non-GAAP) (I/K)	7.0			7.1			6.9
Reconciliation of Non-GAAP Tangible Book Value per Common Share:
Total shareholders’ equity	$	4,410,317		$	4,339,011		$	4,074,089
Less: Preferred stock	(412,500)			(412,500)			(412,500)
(L) Total common equity	$	3,997,817		$	3,926,511		$	3,661,589
(M) Actual common shares outstanding	56,956			57,067			57,602
Book value per common share (L/M)	$	70.19		$	68.81		$	63.57
Tangible book value per common share (non-GAAP) (I/M)	58.32			56.92			51.70

Reconciliation of Non-GAAP Return on Average Tangible Common Equity:
(N) Net income applicable to common shares	$	102,146		$	98,118		$	97,029		$	346,421		$	177,400
Add: Intangible asset amortization	1,877			2,039			2,701			5,923			8,384
Less: Tax effect of intangible asset amortization	(509)			(553)			(589)			(1,576)			(2,079)
After-tax intangible asset amortization	$	1,368		$	1,486		$	2,112		$	4,347		$	6,305
(O) Tangible net income applicable to common shares (non-GAAP)	$	103,514		$	99,604		$	99,141		$	350,768		$	183,705
Total average shareholders' equity	$	4,343,915		$	4,256,778		$	4,034,902		$	4,255,851		$	3,885,187
Less: Average preferred stock	(412,500)			(412,500)			(412,500)			(412,500)			(270,849)
(P) Total average common shareholders' equity	$	3,931,415		$	3,844,278		$	3,622,402		$	3,843,351		$	3,614,338
Less: Average intangible assets	(677,201)			(679,535)			(684,717)			(679,167)			(687,331)
(Q) Total average tangible common shareholders’ equity (non-GAAP)	$	3,254,214		$	3,164,743		$	2,937,685		$	3,164,184		$	2,927,007
Return on average common equity, annualized (N/P)	10.31		%	10.24		%	10.66		%	12.05		%	6.56		%
Return on average tangible common equity, annualized (non-GAAP) (O/Q)	12.62			12.62			13.43			14.82			8.38

Reconciliation of Non-GAAP Pre-Tax, Pre-Provision Income:
Income before taxes	$	149,742	$	144,150	$	137,284	$	500,751	$	255,070
Add: Provision for credit losses	(7,916)		(15,299)		25,026		(68,562)		213,040
Pre-tax income, excluding provision for credit losses (non-GAAP)	$	141,826	$	128,851	$	162,310	$	432,189	$	468,110

62

Critical Accounting Policies

The Company’s Consolidated Financial Statements are prepared in accordance with GAAP in the United States and prevailing practices of the banking industry. Application of these principles requires management to make estimates, assumptions, and judgments that affect the amounts reported in the financial statements and accompanying notes. Certain policies and accounting principles inherently have a greater reliance on the use of estimates, assumptions and judgments, and as such have a greater possibility that changes in those estimates and assumptions could produce financial results that are materially different than originally reported. Estimates, assumptions and judgments are necessary when assets and liabilities are required to be recorded at fair value, when a decline in the value of an asset not carried on the financial statements at fair value warrants an impairment write-down or valuation reserve to be established, or when an asset or liability needs to be recorded contingent upon a future event, are based on information available as of the date of the financial statements; accordingly, as information changes, the financial statements could reflect different estimates and assumptions. Management views critical accounting policies to be those which are highly dependent on subjective or complex judgments, estimates and assumptions, and where changes in those estimates and assumptions could have a significant impact on the financial statements. Management currently views critical accounting policies to include the determination of the allowance for credit losses, including the allowance for loan losses, the allowance for unfunded commitment losses and the allowance for held-to-maturity securities losses, estimations of fair value, the valuations required for impairment testing of goodwill, the valuation and accounting for derivative instruments and income taxes as the accounting areas that require the most subjective and complex judgments, and as such could be the most subject to revision as new information becomes available. For a more detailed discussion on these critical accounting policies, see “Summary of Critical Accounting Policies” beginning on page 59 of the Company’s 2020 Form 10-K.

The COVID-19 pandemic, specifically the uncertainty related to the ultimate magnitude of impact on the economy and banking industry, is expected to impact many of the estimates, assumptions and judgments noted above that are used by management. This could result in volatility in the related accounting estimates, which will directly impact the Company’s financial results. Please refer to Management’s Discussion and Analysis of Financial Condition and Results of Operation - Overview section of this report for additional discussion of the impact of the COVID-19 pandemic.

Net Income

Net income for the quarter ended September 30, 2021 totaled $109.1 million, an increase of $1.8 million, or 2%, compared to the quarter ended September 30, 2020. On a per share basis, net income for the third quarter of 2021 totaled $1.77 per diluted common share compared to $1.67 for the third quarter of 2020.

The increase in net income for the third quarter of 2021 as compared to the same period in the prior year is primarily attributable to a release of credit reserves attributable to positive changes in the Company’s macroeconomic forecasts in addition to improvement in portfolio characteristics and higher net interest income, partially offset by decreased mortgage banking revenue as well as increased salaries and employee benefits and other expenses related to continued investment in the Company’s growth. See "Net Interest Income", "Non-interest Income", "Non-interest Expense" and "Loan Portfolio and Asset Quality" for further detail.

Net Interest Income

The primary source of the Company’s revenue is net interest income. Net interest income is the difference between interest income and fees on earning assets, such as loans and securities, and interest expense on the liabilities to fund those assets, including interest bearing deposits and other borrowings. The amount of net interest income is affected by both changes in the level of interest rates, and the amount and composition of earning assets and interest bearing liabilities.

63

Quarter Ended September 30, 2021 compared to the Quarters Ended June 30, 2021 and September 30, 2020

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 third quarter of 2021 as compared to the second quarter of 2021 (sequential quarters) and third quarter of 2020 (linked quarters):

	Average Balance for three months ended,						Interest for three months ended,						Yield/Rate for three months ended,
(Dollars in thousands)	Sep 30, 2021		Jun 30, 2021		Sep 30, 2020		Sep 30, 2021		Jun 30, 2021		Sep 30, 2020		Sep 30, 2021		Jun 30, 2021		Sep 30, 2020
Interest-bearing deposits with banks and cash equivalents(1)	$	5,112,720	$	3,844,355	$	3,411,164	$	2,000	$	1,153	$	1,181	0.16	%	0.12	%	0.14	%
Investment securities (2)	5,065,593		4,771,403		3,789,422		25,681		24,117		22,365		2.01		2.03		2.35
FHLB and FRB stock	136,001		136,324		135,567		1,777		1,769		1,774		5.18		5.20		5.21
Liquidity management assets(3)(8)	$	10,314,314	$	8,752,082	$	7,336,153	$	29,458	$	27,039	$	25,320	1.13	%	1.24	%	1.37	%
Other earning assets(3)(4)(8)	28,238		23,354		16,656		188		150		113		2.64		2.59		2.71
Mortgage loans held-for-sale	871,824		991,011		822,908		7,716		8,183		5,791		3.51		3.31		2.80
Loans, net of unearned income(3)(5)(8)	32,985,445		33,085,174		31,634,608		285,998		285,116		280,960		3.44		3.46		3.53
Total earning assets(8)	$	44,199,821	$	42,851,621	$	39,810,325	$	323,360	$	320,488	$	312,184	2.90	%	3.00	%	3.12	%
Allowance for loan and investment security losses	(269,963)		(285,686)		(321,732)
Cash and due from banks	425,000		470,566		345,438
Other assets	2,837,652		2,910,250		3,128,813
Total assets	$	47,192,510	$	45,946,751	$	42,962,844
NOW and interest-bearing demand deposits	$	3,757,677	$	3,626,424	$	3,435,089	$	767	$	736	$	1,342	0.08	%	0.08	%	0.16	%
Wealth management deposits	4,672,402		4,369,998		4,239,300		7,888		7,686		7,662		0.67		0.71		0.72
Money market accounts	10,027,424		9,547,167		9,332,668		2,342		2,795		7,245		0.09		0.12		0.31
Savings accounts	3,851,523		3,728,271		3,419,586		406		402		2,104		0.04		0.04		0.24
Time deposits	4,236,317		4,632,796		4,900,839		7,902		12,679		20,731		0.74		1.10		1.68
Interest-bearing deposits	$	26,545,343	$	25,904,656	$	25,327,482	$	19,305	$	24,298	$	39,084	0.29	%	0.38	%	0.61	%
Federal Home Loan Bank advances	1,241,073		1,235,142		1,228,421		4,931		4,887		4,947		1.58		1.59		1.60
Other borrowings	512,785		525,924		512,787		2,501		2,568		3,012		1.94		1.96		2.34
Subordinated notes	436,746		436,644		436,323		5,480		5,512		5,474		5.02		5.05		5.02
Junior subordinated debentures	253,566		253,566		253,566		2,744		2,724		2,703		4.23		4.25		4.17
Total interest-bearing liabilities	$	28,989,513	$	28,355,932	$	27,758,579	$	34,961	$	39,989	$	55,220	0.48	%	0.56	%	0.79	%
Non-interest-bearing deposits	12,834,084		12,246,274		9,988,769
Other liabilities	1,024,998		1,087,767		1,180,594
Equity	4,343,915		4,256,778		4,034,902
Total liabilities and shareholders’ equity	$	47,192,510	$	45,946,751	$	42,962,844
Interest rate spread(6)(8)													2.42	%	2.44	%	2.33	%
Less: Fully taxable-equivalent adjustment							(903)		(909)		(1,028)		(0.01)		(0.01)		(0.01)
Net free funds/contribution(7)	$	15,210,308	$	14,495,689	$	12,051,746							0.17		0.19		0.24
Net interest income/margin (GAAP)(8)							$	287,496	$	279,590	$	255,936	2.58	%	2.62	%	2.56	%
Fully taxable-equivalent adjustment							903		909		1,028		0.01		0.01		0.01
Net interest income/margin, fully taxable-equivalent (non-GAAP)(8)							$	288,399	$	280,499	$	256,964	2.59	%	2.63	%	2.57	%

(1)Includes interest-bearing deposits with 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 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 September 30, 2021, June 30, 2021 and September 30, 2020 were $903,000, $909,000 and $1.0 million, respectively.

(4)Other earning assets include brokerage customer receivables and trading account securities.

(5)Loans, net of unearned income, include non-accrual loans.

(6)Interest rate spread is the difference between the yield earned on earning assets and the rate paid on interest-bearing liabilities.

(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.

(8)See “Supplemental Non-GAAP Financial Measures/Ratios” for additional information on this performance ratio.

64

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. 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 2.56% (2.57% on a fully taxable-equivalent basis, non-GAAP) during the third quarter of 2020.

Nine months ended September 30, 2021 compared to nine months ended September 30, 2020

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 nine months ended September 30, 2021 compared to the nine months ended September 30, 2020:

	Average Balance for nine months ended,				Interest for nine months ended,				Yield/Rate for nine months ended,
(Dollars in thousands)	September 30, 2021		September 30, 2020		September 30, 2021		September 30, 2020		September 30, 2021		September 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 stock	136,028		128,611		5,291		5,116		5.20		5.31
Liquidity management assets (3)(8)	$	9,133,242	$	7,112,651	$	79,205	$	95,503	1.16	%	1.79	%
Other earning assets (3)(4)(8)	24,016		17,576		463		393		2.59		2.99
Mortgage loans held-for-sale	1,003,868		644,611		24,935		13,720		3.32		2.84
Loans, net of unearned income (3)(5)(8)	32,839,837		29,643,281		845,598		878,981		3.44		3.96
Total earning assets (8)	$	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 banks	420,874		339,968
Other assets	2,922,933		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 deposits	4,401,489		3,821,203		22,925		21,840		0.70		0.76
Money market accounts	9,639,370		8,686,171		8,002		42,748		0.11		0.66
Savings accounts	3,723,420		3,334,944		1,238		11,736		0.04		0.47
Time deposits	4,579,161		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 advances	1,234,929		1,131,823		14,658		13,241		1.59		1.56
Other borrowings	518,946		491,981		7,678		9,994		1.98		2.71
Subordinated notes	436,641		436,223		16,469		16,452		5.03		5.03
Junior subordinated debentures	253,566		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 deposits	12,300,931		8,947,639
Other liabilities	1,079,614		1,096,297
Equity	4,255,851		3,885,187
Total liabilities and shareholders’ equity	$	46,050,737	$	40,552,517
Interest rate spread (6)(8)									2.39	%	2.50	%
Less: Fully taxable-equivalent adjustment					(2,696)		(3,558)		(0.01)		(0.01)
Net free funds/contribution (7)	$	14,586,622	$	10,794,725					0.20		0.30
Net interest income/margin (GAAP) (8)					$	828,981	$	780,510	2.58	%	2.79	%
Fully taxable-equivalent adjustment					2,696		3,558		0.01		0.01
Net interest income/margin, fully taxable-equivalent (non-GAAP) (8)					$	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. The total adjustments for the nine months ended September 30, 2021 and September 30, 2020 were $2.7 million and $3.6 million, respectively.

(4)Other earning assets include brokerage customer receivables and trading account securities.

(5)Loans, net of unearned income, include non-accrual loans.

(6)Interest rate spread is the difference between the yield earned on earning assets and the rate paid on interest-bearing liabilities.

(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.

(8)See “Supplemental Non-GAAP Financial Measures/Ratios” for additional information on this performance ratio.

65

Analysis of Changes in Net Interest Income (GAAP)

The following table presents an analysis of the changes in the Company’s net interest income comparing the three month period ended September 30, 2021 to each of the three month periods ended June 30, 2021 and September 30, 2020, and nine month periods ended September 30, 2021 and 2020. The reconciliations set forth the changes in the GAAP-derived net interest income as a result of changes in volumes, changes in rates and differing number of days in each period:

	Third Quarter of 2021 Compared to Second Quarter of 2021		Third Quarter of 2021 Compared to Third Quarter of 2020		First Nine Months of 2021 Compared to First Nine Months of 2020
(In thousands)
Net interest income (GAAP) for comparative period	$	279,590	$	255,936	$	780,510
Change due to mix and growth of earning assets and interest-bearing liabilities (volume)	2,212		19,747		109,475
Change due to interest rate fluctuations (rate)	2,655		11,813		(58,145)
Change due to number of days in each period	3,039		—		(2,859)
Net interest income (GAAP) for the period ended September 30, 2021	$	287,496	$	287,496	$	828,981
Fully taxable-equivalent adjustment	903		903		2,696
Net interest income, fully taxable-equivalent (non-GAAP)	$	288,399	$	288,399	$	831,677

Non-interest Income

The following table presents non-interest income by category for the periods presented:

	Three Months Ended				$ Change		% Change
(Dollars in thousands)	September 30, 2021		September 30, 2020
Brokerage	$	5,230	$	4,563	$	667	15	%
Trust and asset management	26,301		20,394		5,907		29
Total wealth management	31,531		24,957		6,574		26
Mortgage banking	55,794		108,544		(52,750)		(49)
Service charges on deposit accounts	14,149		11,497		2,652		23
(Losses) gains on investment securities, net	(2,431)		411		(2,842)		NM
Fees from covered call options	1,157		—		1,157		NM
Trading gains, net	58		183		(125)		(68)
Operating lease income, net	12,807		11,717		1,090		9
Other:
Interest rate swap fees	4,868		4,029		839		21
BOLI	2,154		1,218		936		77
Administrative services	1,359		1,077		282		26
Foreign currency remeasurement gains (losses)	77		(54)		131		NM
Early pay-offs of capital leases	209		165		44		27
Miscellaneous	14,742		6,849		7,893		NM
Total Other	23,409		13,284		10,125		76
Total Non-interest Income	$	136,474	$	170,593	$	(34,119)	(20)	%

NM - Not meaningful.

66

	Nine Months Ended				$ Change		% Change
(Dollars in thousands)	September 30, 2021		September 30, 2020
Brokerage	$	15,418	$	13,991	$	1,427	10	%
Trust and asset management	76,112		59,543		16,569		28
Total wealth management	91,530		73,534		17,996		24
Mortgage banking	219,872		259,194		(39,322)		(15)
Service charges on deposit accounts	39,434		33,182		6,252		19
Gains (losses) on investment securities, net	8		(3,140)		3,148		NM
Fees from covered call options	2,545		2,292		253		11
Trading gains (losses), net	39		(902)		941		NM
Operating lease income, net	39,487		35,486		4,001		11
Other:
Interest rate swap fees	10,176		15,788		(5,612)		(36)
BOLI	4,620		1,884		2,736		NM
Administrative services	3,843		3,122		721		23
Foreign currency remeasurement losses	(606)		(413)		(193)		47
Early pay-offs of capital leases	352		514		(162)		(32)
Miscellaneous	41,053		25,287		15,766		62
Total Other	59,438		46,182		13,256		29
Total Non-interest Income	$	452,353	$	445,828	$	6,525	1	%

Notable contributions to the change in non-interest income are as follows:

Wealth management revenue increased in the third quarter of 2021 as compared to the third quarter of 2020 due to an increase in trust and asset management fees. Trust and asset management fees are based primarily on the market value of the assets under management or administration as well as the volume of tax-deferred like-kind exchange services provided during a period. Such revenue increased in the third quarter of 2021 primarily as a result of market appreciation related to managed money accounts with fees based on assets under management and higher asset levels from new customers and new financial advisors as compared to the third quarter of 2020. 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 of Wintrust Investments and fees from tax-deferred like-kind exchange services provided by the Chicago Deferred Exchange Company.

Service charges on deposits increased in the third quarter of 2021 as compared to the third quarter of 2020 as a result of higher account analysis fees on deposit accounts which increased as a result of the Company’s commercial banking initiatives.

The Company recognized net losses on investment securities of $2.4 million in the third quarter of 2021 primarily as a result of a loss on one equity investment.

Mortgage banking revenue decreased in the third quarter of 2021 as compared to the third quarter of 2020 as a result of a decrease in loans originated for sale and lower gain on sale margins, partially offset by more favorable fair value adjustments of mortgage servicing rights. Mortgage loans originated for sale totaled $1.6 billion in the third quarter of 2021 as compared to $2.2 billion in the third quarter of 2020. Mortgage banking revenue includes revenue from activities related to originating, selling and servicing residential real estate loans for the secondary market. Mortgage revenue is also impacted by changes in the fair value of MSRs. The Company records MSRs at fair value on a recurring basis.

During the third quarter of 2021, the fair value of the mortgage servicing rights portfolio increased due to increased capitalization of $15.5 million during the third quarter, partially offset by an unfavorable fair value adjustment of $888,000 and a reduction in value of $8.6 million due to payoffs and paydowns of the existing portfolio. Starting in 2019, the Company purchased options and entered into interest rate swaps to economically hedge a portion of the fair value changes recorded in earnings related to its MSRs portfolio. During the second quarter of 2020, the Company terminated these interest rate swaps. There were no such options or interest rate swaps outstanding as of September 30, 2021.

67

The table below presents additional selected information regarding mortgage banking for the respective periods.

	Three Months Ended						Nine Months Ended
(Dollars in thousands)	September 30, 2021			September 30, 2020			September 30, 2021			September 30, 2020
Originations:
Retail originations	$	1,153,265		$	1,590,699		$	4,123,650		$	3,952,775
Veterans First originations	405,663			635,876			1,381,256			1,700,711
Total originations for sale (A)	$	1,558,928		$	2,226,575		$	5,504,906		$	5,653,486
Originations for investment	181,886			73,711			753,493			204,392
Total originations	$	1,740,814		$	2,300,286		$	6,258,399		$	5,857,878
Retail originations as percentage of originations for sale	74		%	71		%	75		%	70		%
Veterans First originations as a percentage of originations for sale	26			29			25			30
Purchases as a percentage of originations for sale	56		%	41		%	43		%	36		%
Refinances as a percentage of originations for sale	44			59			57			64
Production Margin:
Production revenue (B) (1)	$	39,247		$	94,148		$	148,060		$	236,908
Total originations for sale (A)	$	1,558,928		$	2,226,575		$	5,504,906		$	5,653,486
Add: Current period end mandatory interest rate lock commitments to fund originations for sale (2)	510,982			1,544,234			510,982			1,544,234
Less: Prior period end mandatory interest rate lock commitments to fund originations for sale (2)	605,400			1,275,648			1,072,717			372,357
Total mortgage production volume (C)	$	1,464,510		$	2,495,161		$	4,943,171		$	6,825,363
Production margin (B/C)	2.68		%	3.77		%	3.00		%	3.47		%
Mortgage Servicing:
Loans serviced for others (D)	$	12,720,126		$	10,139,878
MSRs, at fair value (E)	133,552			86,907
Percentage of MSRs to loans serviced for others (E/D)	1.05		%	0.86		%
Servicing income	$	10,454		$	8,118		$	29,920		$	22,057
Components of MSR:
MSR - current period capitalization	$	15,546		$	20,936		$	57,674		$	50,734
MSR - collection of expected cash flow - paydowns	(1,036)			(590)			(2,755)			(1,556)
MSR - collection of expected cash flow - payoffs	(7,558)			(7,272)			(24,547)			(22,000)
Valuation:
MSR - changes in fair value model assumptions	(888)			(3,002)			11,617			(25,541)
Gain on derivative contract held as an economic hedge, net	—			—			—			4,749
MSR valuation adjustment, net of gain on derivative contract held as an economic hedge	$	(888)		$	(3,002)		$	11,617		$	(20,792)
Summary of Mortgage Banking Revenue:
Production revenue (1)	$	39,247		$	94,148		$	148,060		$	236,908
Servicing income	10,454			8,118			29,920			22,057
MSR activity	6,064			10,072			41,989			6,386
Other	29			(3,794)			(97)			(6,157)
Total mortgage banking revenue	$	55,794		$	108,544		$	219,872		$	259,194

(1)Production revenue represents revenue earned from the origination and subsequent sale of mortgages, including gains on loans sold and fees from originations, changes in other related financial instruments carried at fair value, processing and other related activities, and excludes servicing fees, changes in the fair value of servicing rights and changes to the mortgage recourse obligation and other non-production revenue.

(2)Certain volume adjusted for the estimated pull-through rate of the loan, which represents the Company’s best estimate of the likelihood that a committed loan will ultimately fund.

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 entered into these transactions with the goal of economically hedging security positions and enhancing its overall return on its investment portfolio by using fees generated from these options to compensate for net interest margin compression. These option transactions are designed to mitigate overall interest rate risk and do not qualify as hedges pursuant to accounting guidance. There were no outstanding call option contracts at September 30, 2021 and September 30, 2020.

Miscellaneous revenue increased in the third quarter of 2021 as compared to the third quarter of 2020 primarily as a result of an increase in partnership income.

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Non-interest Expense

The following table presents non-interest expense by category for the periods presented:

	Three months ended				$ Change		% Change
(Dollars in thousands)	September 30, 2021		September 30, 2020
Salaries and employee benefits:
Salaries	$	88,161	$	89,849	$	(1,688)	(2)	%
Commissions and incentive compensation	57,026		48,475		8,551		18
Benefits	25,725		25,718		7		0
Total salaries and employee benefits	170,912		164,042		6,870		4
Software and equipment	22,029		17,251		4,778		28
Operating lease equipment depreciation	10,013		9,425		588		6
Occupancy, net	18,158		15,830		2,328		15
Data processing	7,104		5,689		1,415		25
Advertising and marketing	13,443		7,880		5,563		71
Professional fees	7,052		6,488		564		9
Amortization of other intangible assets	1,877		2,701		(824)		(31)
FDIC insurance	6,750		6,772		(22)		0
OREO expense, net	(1,531)		(168)		(1,363)		NM
Other:
Commissions—3rd party brokers	884		778		106		14
Postage	2,018		1,529		489		32
Miscellaneous	23,435		26,002		(2,567)		(10)
Total other	26,337		28,309		(1,972)		(7)
Total Non-interest Expense	$	282,144	$	264,219	$	17,925	7	%

NM - Not meaningful.

	Nine Months Ended				$ Change		% Change
(Dollars in thousands)	September 30, 2021		September 30, 2020
Salaries and employee benefits:
Salaries	$	270,303	$	258,240	$	12,063	5	%
Commissions and incentive compensation	172,144		126,201		45,943		36
Benefits	82,091		70,519		11,572		16
Total salaries and employee benefits	524,538		454,960		69,578		15
Software and equipment	63,807		47,931		15,876		33
Operating lease equipment depreciation	30,733		27,977		2,756		10
Occupancy, net	55,841		50,270		5,571		11
Data processing	20,072		24,468		(4,396)		(18)
Advertising and marketing	33,294		26,446		6,848		26
Professional fees	21,943		20,896		1,047		5
Amortization of other intangible assets	5,923		8,384		(2,461)		(29)
FDIC insurance	19,713		17,988		1,725		10
OREO expense, net	(1,013)		(807)		(206)		NM
Other:
Commissions—3rd party brokers	2,619		2,350		269		11
Postage	5,661		5,069		592		12
Miscellaneous	66,014		72,296		(6,282)		(9)
Total other	74,294		79,715		(5,421)		(7)
Total Non-interest Expense	$	849,145	$	758,228	$	90,917	12	%

NM - Not meaningful.

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Notable contributions to the change in non-interest expense are as follows:

Total salaries and employee benefits expense increased in the third quarter of 2021 compared to the third quarter of 2020 primarily due to increased commissions and incentive compensation expense. Commissions and incentive compensation increased primarily due to higher expenses associated with the Company’s annual bonus and long term incentive program.

Software and equipment expense increased in the third quarter of 2021 compared to the third quarter of 2020 as a result of higher software license fees as well as higher computer and software depreciation expense.

Occupancy expense increased in the third quarter of 2021 compared to the third quarter of 2020 primarily as a result of increased real estate tax assessment estimates.

Advertising and marketing expenses increased in the third quarter of 2021 compared to the third quarter of 2020 as a result of increased sponsorship activity. Sponsorship activity was lower in the third quarter of 2020 due to the cancellation of events, including sports sponsorships, as a result of the COVID-19 pandemic. Marketing costs are incurred to promote the Company's brand, commercial banking capabilities and various products, and to attract loans and deposits and 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.

Miscellaneous expense decreased in the third quarter of 2021 compared to the third quarter of 2020 as a result of a reversal of a portion of contingent consideration expense in the third quarter of 2021 related to a previous acquisition of mortgage operations compared to an increase in such contingent consideration expense in the third quarter of 2020, partially offset by 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. The liability for contingent consideration expense related to the previous acquisition of mortgage operations is based upon forward looking mortgage origination volumes and the estimated profitability of that operation. Should those assumptions change going forward, the liability may need to be increased or decreased. The contractual period covering contingent consideration ends in January 2023 and the final two years of the contract contemplate a lower ratio of contingent consideration relative to financial performance. 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.

Income Taxes

The Company recorded income tax expense of $40.6 million in the third quarter of 2021 compared to $30.0 million in the third quarter of 2020. The effective tax rates were 27.12% in the third quarter of 2021 compared to 21.83% in the third quarter of 2020. During the first nine months of 2021, the Company recorded income tax expense of $133.4 million compared to $63.3 million for the first nine months of 2020. The effective tax rates were 26.63% for the first nine months of 2021 and 24.81% for the first nine months of 2020.

The effective tax rates were impacted by the recognition 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 third quarter of 2020, an overall lower level of pretax net income in the 2020 periods, and 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 share-based awards. The Company recorded excess tax benefits of $1.6 million in the first nine months of 2021 and additional tax expense of $597,000 in the first nine months of 2020 related to share-based compensation, most of which was recorded in the first quarter of each year.

Operating Segment Results

As described in Note 13 to the Consolidated Financial Statements in Item 1, the Company’s operations consist of three primary segments: community banking, specialty finance and wealth management. The Company’s profitability is primarily dependent on the net interest income, provision for credit losses, non-interest income and operating expenses of its community banking segment. For purposes of internal segment profitability, management allocates certain intersegment and parent company balances. Management allocates a portion of revenues to the specialty finance segment related to loans and leases originated by the specialty finance segment and sold or assigned to the community banking segment. Similarly, for purposes of analyzing the contribution from the wealth management segment, management allocates a portion of the net interest income earned by the community banking segment on deposit balances of customers of the wealth management segment to the wealth management

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segment. Finally, expenses incurred at the Wintrust parent company are allocated to each segment based on each segment's risk-weighted assets.

The community banking segment’s net interest income for the quarter ended September 30, 2021 totaled $220.0 million as compared to $196.8 million for the same period in 2020, an increase of $23.2 million, or 12%. On a year-to-date basis, net interest income for the segment increased by $33.9 million from $609.3 million for the nine months ended September 30, 2020 to $643.2 million for the nine months ended September 30, 2021. The increase in the three and nine month periods was primarily attributable to earning asset growth, PPP loan fee income, and lower deposits rates. The community banking segment’s non-interest income totaled $94.3 million in the third quarter of 2021, a decrease of $42.7 million, or 31%, when compared to the third quarter of 2020 total of $137.0 million. On a year-to-date basis, non-interest income totaled $332.0 million for the nine months ended September 30, 2021, a decrease of $15.7 million, or 5%, compared to $347.7 million for the nine months ended September 30, 2020. The decrease in the three and nine month periods was primarily the result of reduced mortgage banking revenue due to lower originations for sale and lower gain on sale margin. A release of credit reserves of $7.4 million and $69.2 million was recorded in the community banking segment’s provision for credit losses for the three and nine months ended September 30, 2021, respectively, compared to a provision for credit losses of $23.3 million and $207.2 million, respectively, for the same periods in 2020. The decrease in provision for credit losses for both the three and nine month periods was attributable to positive changes in the macroeconomic forecasts in addition to improvement in portfolio characteristics. The community banking segment’s net income for the quarter ended September 30, 2021 totaled $68.8 million, a decrease of $1.8 million as compared to net income in the third quarter of 2020 of $70.6 million. On a year-to-date basis, the net income of the community banking segment for the nine months ended September 30, 2021 totaled $263.3 million as compared to $97.9 million for the nine months ended September 30, 2020.

The specialty finance segment’s net interest income totaled $52.7 million for the quarter ended September 30, 2021, compared to $46.5 million for the same period in 2020, an increase of $6.2 million, or 13%. On a year-to-date basis, net interest income for the segment increased $13.2 million, or 10% compared to the same period in 2020. The increase for both the three and nine month periods was primarily attributable to growth in earning assets on the premium finance receivables portfolios. The specialty finance segment’s non-interest income totaled $24.4 million and $21.4 million for the three months ended September 30, 2021 and 2020, respectively, and $70.0 million and $64.5 million for the nine months ended September 30, 2021 and 2020, respectively. The increase in non-interest income for both the three and nine month periods was primarily the result of higher originations and increased balances related to the commercial premium finance portfolio and growth in business from the Company’s leasing division. Our commercial premium finance operations, life insurance finance operations, lease financing operations and accounts receivable finance operations accounted for 42%, 29%, 25% and 4%, respectively, of the total revenues of our specialty finance business for the nine month period ended September 30, 2021. The net income of the specialty finance segment for the quarter ended September 30, 2021 totaled $30.2 million as compared to $29.9 million for the quarter ended September 30, 2020. On a year-to-date basis, the net income of the specialty finance segment for the nine months ended September 30, 2021 totaled $78.0 million as compared to $74.7 million for the nine months ended September 30, 2020.

The wealth management segment reported net interest income of $8.0 million for the third quarter of 2021 compared to $6.9 million in the same quarter of 2020, an increase of $1.1 million, or 16%. On a year-to-date basis, net interest income totaled $23.2 million for the first nine months of 2021 as compared to $23.3 million for the first nine months of 2020. 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 $2.3 billion and $2.0 billion in the first nine months of 2021 and 2020, respectively. This segment recorded non-interest income of $33.6 million for the third quarter of 2021 compared to $26.2 million for the third quarter of 2020. On a year-to-date basis, this segment recorded non-interest income of $95.7 million as compared to $74.7 million for the first nine months of 2020. 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 $10.1 million for the third quarter of 2021 compared to $6.9 million for the third quarter of 2020. On a year-to-date basis, the wealth management segment’s net income totaled $26.1 million and $19.2 million for the nine month periods ended September 30, 2021 and 2020, respectively.

Financial Condition

Total assets were $47.8 billion at September 30, 2021, representing an increase of $4.1 billion, or 9%, when compared to September 30, 2020 and an increase of approximately $1.1 billion, or 9% on an annualized basis, when compared to June 30, 2021. Total funding, which includes deposits, all notes and advances, including secured borrowings and the junior subordinated debentures, was $42.4 billion at September 30, 2021, $41.3 billion at June 30, 2021, and $38.3 billion at September 30, 2020.

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See Notes 4, 5, 9, 10 and 11 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.

Interest-Earning Assets

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:

	Three Months Ended
	September 30, 2021				June 30, 2021				September 30, 2020
(Dollars in thousands)	Balance		Percent		Balance		Percent		Balance		Percent
Mortgage loans held-for-sale	$	871,824	2	%	$	991,011	2	%	$	822,908	2	%
Loans, net of unearned income
Commercial, excluding PPP	$	9,732,838	22	%	$	9,377,392	22	%	$	8,647,069	22	%
Commercial - PPP	1,475,304		3		2,877,731		7		3,364,890		8
Commercial real estate	8,776,342		20		8,573,493		20		8,329,285		21
Home equity	355,510		1		379,853		1		455,589		1
Residential real estate	1,496,847		3		1,453,072		3		1,173,639		3
Premium finance receivables	11,118,607		26		10,383,218		24		9,596,817		24
Other loans	29,997		0		40,415		1		67,319		1
Total average loans (1)	$	32,985,445	75	%	$	33,085,174	78	%	$	31,634,608	80	%
Liquidity management assets (2)	10,314,314		23		8,752,082		20		7,336,153		18
Other earning assets (3)	28,238		0		23,354		0		16,656		0
Total average earning assets	$	44,199,821	100	%	$	42,851,621	100	%	$	39,810,325	100	%
Total average assets	$	47,192,510			$	45,946,751			$	42,962,844
Total average earning assets to total average assets			94	%			93	%			93	%

(1)Includes non-accrual loans.

(2)Liquidity management assets include investment securities, other securities, interest earning deposits with banks, federal funds sold and securities purchased under resale agreements.

(3)Other earning assets include brokerage customer receivables and trading account securities.

Mortgage loans held-for-sale. Average mortgage loans held-for-sale totaled $871.8 million in the third quarter of 2021, compared to $991.0 million in the second quarter of 2021 and $822.9 million in the third quarter of 2020. These balances represent mortgage 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 provides a source of non-interest revenue. The increase in average balance from 2020 to 2021 was primarily due to higher balances repurchased by the Company under the early buyout option available for loans sold to GNMA with servicing retained, partially offset by lower mortgage origination production. See “Loan Portfolio and Asset Quality” section below in this Item 2 for additional discussion of these early buyout options.

Loans, net of unearned income. Average total loans, net of unearned income, totaled $33.0 billion in the third quarter of 2021, increasing $1.4 billion, or 4%, from the third quarter of 2020 and decreasing $99.7 million, or 1% on an annualized basis, from the second quarter of 2021. Average commercial loans, excluding PPP loans, totaled $9.7 billion in the third quarter of 2021, and increased $1.1 billion, or 13%, over the average balance in the third quarter of 2020 and $355.4 million, or 15% on an annualized basis, over the average balance in the second quarter of 2021. Average commercial PPP loans totaled $1.5 billion in the third quarter of 2021, and decreased $1.9 billion, or 56%, over the average balance in the third quarter of 2020 and decreased $1.4 billion over the average balance in the second quarter of 2021. The decrease in the third quarter of 2021 compared to the second quarter of 2021 and third quarter of 2020 is primarily the result of significant payoffs in the portfolio through the forgiveness process administered by the SBA. Average commercial real estate loans totaled $8.8 billion in the third quarter of 2021, increasing $447.1 million, or 5%, over the third quarter of 2020. Combined, the commercial and commercial real estate loan categories comprised 61% of the average loan portfolio in the third quarter of 2021 as compared to 63% in the second quarter of 2021 and 64% in the third quarter of 2020. Excluding the impact of PPP loans, growth realized in these aggregated categories for the third quarter of 2021 as compared to the sequential and prior year periods is primarily attributable to increased business development efforts.

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Home equity loan portfolio averaged $355.5 million in the third quarter of 2021, and decreased $100.1 million, or 22% from the average balance of $455.6 million in same period of 2020. The decrease in the home equity loan portfolio is primarily the result of borrowers preferring to finance through longer term, low rate mortgage loans. The Company has been actively managing its home equity portfolio to ensure that diligent pricing, appraisal and other underwriting activities continue to exist.

Residential real estate loans averaged $1.5 billion in the third quarter of 2021, and increased $323.2 million, or 28% from the average balance of $1.2 billion in same period of 2020. Additionally, compared to the quarter ended June 30, 2021, the average balance increased $43.8 million, or 12% on an annualized basis. The increase in average balance compared to both periods was partially due to the Company deciding to allocate more balances from its mortgage production for investment instead of for subsequent sale and servicing in the secondary market.

Average premium finance receivables totaled $11.1 billion in the third quarter of 2021, and accounted for 34% of the Company’s average total loans. The increase during the third quarter of 2021 compared to the third quarter of 2020 was the result of continued originations within the portfolio due to hardening insurance market conditions driving a higher average size of new commercial insurance premium finance receivables as well as effective marketing and customer servicing. Approximately $3.1 billion of premium finance receivables were originated in the third quarter of 2021 compared to $2.8 billion during the same period of 2020. Premium finance receivables consist of a commercial portfolio and a life portfolio comprising approximately 42% and 58%, respectively, of the average total balance of premium finance receivables for the third quarter of 2021, and 43% and 57%, respectively, for the third quarter of 2020.

Other loans represent a wide variety of personal and consumer loans to individuals. Consumer loans generally have shorter terms and higher interest rates than mortgage loans but generally involve more credit risk due to the type and nature of the collateral.

Liquidity management assets. Funds that are not utilized for loan originations are used to purchase investment securities and short term money market investments, to sell as federal funds and to maintain in interest bearing deposits with banks. Average liquidity management assets accounted for 23% and 18% of total average earning assets in the third quarter of 2021 and 2020, respectively. Average liquidity management assets increased $3.0 billion in the third quarter of 2021 compared to the same period of 2020. The balances of these assets can fluctuate based on management’s ongoing effort to manage liquidity and for asset liability management purposes. The Company will continue to prudently evaluate and utilize liquidity sources as needed, 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 - Overview and - Liquidity sections of this report for additional discussion of the impact of the COVID-19 pandemic.

Other earning assets. Other earning assets include brokerage customer receivables and trading account securities. In the normal course of business, Wintrust Investments' activities involve the execution, settlement, and financing of various securities transactions. Wintrust Investments customer securities activities are transacted on either a cash or margin basis. In margin transactions, Wintrust Investments, under an agreement with an out-sourced securities firm, extends credit to its customers, subject to various regulatory and internal margin requirements, collateralized by cash and securities in customers’ accounts. In connection with these activities, Wintrust Investments executes and the out-sourced firm clears customer transactions relating to the sale of securities not yet purchased, substantially all of which are transacted on a margin basis subject to individual exchange regulations. Such transactions may expose Wintrust Investments to off-balance-sheet risk, particularly in volatile trading markets, in the event margin requirements are not sufficient to fully cover losses that customers may incur. In the event a customer fails to satisfy its obligations, Wintrust Investments under the agreement with the outsourced securities firm, may be required to purchase or sell financial instruments at prevailing market prices to fulfill the customers’ obligations. Wintrust Investments seeks to control the risks associated with its customers’ activities by requiring customers to maintain margin collateral in compliance with various regulatory and internal guidelines. Wintrust Investments monitors required margin levels daily and, pursuant to such guidelines, requires customers to deposit additional collateral or to reduce positions when necessary.

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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:

	Nine Months Ended
	September 30, 2021				September 30, 2020
(Dollars in thousands)	Balance		Percent		Balance		Percent
Mortgage loans held-for-sale	$	1,003,868	2	%	$	644,611	2	%
Loans:
Commercial, excluding PPP	$	9,432,203	22	%	$	8,582,438	23	%
Commercial - PPP	2,474,380		6		2,019,778		5
Commercial real estate	8,616,665		20		8,211,222		22
Home equity	381,115		1		477,672		1
Residential real estate	1,417,648		3		1,213,289		3
Premium finance receivables	10,475,164		25		9,069,770		24
Other loans	42,662		0		69,112		1
Total average loans(1)	$	32,839,837	77	%	$	29,643,281	79	%
Liquidity management assets (2)	9,133,242		21		7,112,651		19
Other earning assets (3)	24,016		0		17,576		0
Total average earning assets	$	43,000,963	100	%	$	37,418,119	100	%
Total average assets	$	46,050,737			$	40,552,517
Total average earning assets to total average assets			93	%			92	%

(1)Includes non-accrual loans.

(2)Liquidity management assets include investment securities, other securities, interest earning deposits with banks, federal funds sold and securities purchased under resale agreements.

(3)Other earning assets include brokerage customer receivables and trading account securities.

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LOAN PORTFOLIO AND ASSET QUALITY

Loan Portfolio

The following table shows the Company’s loan portfolio by category as of the dates shown:

	September 30, 2021				December 31, 2020				September 30, 2020
			% of				% of				% of
(Dollars in thousands)	Amount		Total		Amount		Total		Amount		Total
Commercial	$	11,187,972	33	%	$	11,955,967	37	%	$	12,276,999	39	%
Commercial real estate	8,885,714		27		8,494,132		26		8,423,142		26
Home equity	347,662		1		425,263		1		446,274		1
Residential real estate	1,547,736		5		1,259,598		5		1,384,810		4
Premium finance receivables—commercial	4,616,977		14		4,054,489		13		4,060,144		13
Premium finance receivables—life insurance	6,655,453		20		5,857,436		18		5,488,832		17
Consumer and other	22,529		0		32,188		0		55,354		0
Total loans, net of unearned income	$	33,264,043	100	%	$	32,079,073	100	%	$	32,135,555	100	%

Commercial and commercial real estate loans. Our commercial and commercial real estate loan portfolios are comprised primarily of lines of credit for working capital purposes and commercial real estate loans. The table below sets forth information regarding the types and amounts of our loans within these portfolios as of September 30, 2021 and 2020:

	As of September 30, 2021						As of September 30, 2020
					Allowance						Allowance
			% of		For Credit				% of		For Credit
			Total		Losses				Total		Losses
(Dollars in thousands)	Balance		Balance		Allocation		Balance		Balance		Allocation
Commercial:
Commercial, industrial, and other, excluding commercial PPP	$	10,105,984	50.3	%	$	109,780	$	8,897,986	43.0	%	$	112,891
Commercial PPP	1,081,988		5.4		2		3,379,013		16.3		3
Total commercial	$	11,187,972	55.7	%	$	109,782	$	12,276,999	59.3	%	$	112,894
Commercial Real Estate:
Construction and development	$	1,343,715	6.7	%	$	34,101	$	1,333,149	6.4	%	$	77,126
Non-construction	7,541,999		37.6		105,934		7,089,993		34.3		156,884
Total commercial real estate	$	8,885,714	44.3	%	$	140,035	$	8,423,142	40.7	%	$	234,010
Total commercial and commercial real estate	$	20,073,686	100.0	%	$	249,817	$	20,700,141	100.0	%	$	346,904
Commercial real estate - collateral location by state:
Illinois	$	6,425,279	72.3	%			$	6,270,584	74.4	%
Wisconsin	790,477		8.9				783,241		9.3
Total primary markets	$	7,215,756	81.2	%			$	7,053,825	83.7	%
Indiana	307,631		3.5				265,905		3.2
Florida	117,990		1.3				133,602		1.6
Arizona	81,850		0.9				79,086		0.9
California	107,693		1.2				82,852		1.0
Texas	108,239		1.2				55,229		0.7
Other	946,555		10.7				752,643		8.9
Total commercial real estate	$	8,885,714	100.0	%			$	8,423,142	100.0	%

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. In addition, the Company has participated in the PPP starting in the second quarter of 2020. Commercial business lending is generally considered to involve a slightly higher degree of risk than traditional consumer bank lending. Primarily as a result

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of improvements in the Company’s macroeconomic forecasts and changes in portfolio characteristics, our allowance for credit losses in our commercial loan portfolio decreased to $109.8 million as of September 30, 2021 compared to $112.9 million as of September 30, 2020.

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, 81.2% of our commercial real estate loan portfolio is located in this region as of September 30, 2021. We have been able to effectively manage our total non-performing commercial real estate loans. As of September 30, 2021, our allowance for credit losses related to this portfolio was $140.0 million compared to $234.0 million as of September 30, 2020. The decrease in the allowance for credit losses in our commercial real estate portfolio is primarily due to the impact on the Company’s loan loss modeling from improving expectations between the two reporting dates primarily related to the Commercial Real Estate Price Index.

The Company also participates in mortgage warehouse lending, which is included above within commercial, industrial and other, by providing interim funding to unaffiliated mortgage bankers to finance residential mortgages originated by such bankers for sale into the secondary market. The Company’s loans to the mortgage bankers are secured by the business assets of the mortgage companies as well as the specific mortgage loans funded by the Company, after they have been pre-approved for purchase by third party end lenders. The Company may also provide interim financing for packages of mortgage loans on a bulk basis in circumstances where the mortgage bankers desire to competitively bid on a number of mortgages for sale as a package in the secondary market. Amounts advanced with respect to any particular mortgage loan are usually required to be repaid within 21 days.

Home equity loans. Our home equity loans and lines of credit are originated by each of our banks in their local markets where we have a strong understanding of the underlying real estate value. Our banks monitor and manage these loans, and we conduct an automated review of all home equity loans and lines of credit at least twice per year. This review collects current credit performance for each home equity borrower and identifies situations where the credit strength of the borrower is declining, or where there are events that may influence repayment, such as tax liens or judgments. Our banks use this information to manage loans that may be higher risk and to determine whether to obtain additional credit information or updated property valuations.

The rates we offer on new home equity lending are based on several factors, including appraisals and valuation due diligence, in order to reflect inherent risk, and we place additional scrutiny on larger home equity requests. In a limited number of cases, we issue home equity credit together with first mortgage financing, and requests for such financing are evaluated on a combined basis. It is not our practice to advance more than 85% of the appraised value of the underlying asset, which ratio we refer to as the loan-to-value ratio, or LTV ratio, and a majority of the credit we previously extended, when issued, had an LTV ratio of less than 80%. Our home equity loan portfolio has performed well in light of the ongoing volatility in the overall residential real estate market.

Residential real estate. Our residential real estate portfolio includes one- to four-family adjustable rate mortgages, construction loans to individuals and bridge financing loans for qualifying customers as well as certain long-term fixed rate loans. As of September 30, 2021, our residential loan portfolio totaled $1.5 billion, or 5% of our total outstanding loans.

Our adjustable rate mortgages relate to properties located principally in the Chicago metropolitan area and southern Wisconsin or vacation homes owned by local residents. These adjustable rate mortgages are often non-agency conforming. Adjustable rate mortgage loans decrease the interest rate risk we face on our mortgage portfolio. However, this risk is not eliminated due to the fact that such loans generally provide for periodic and lifetime limits on the interest rate adjustments among other features. Additionally, adjustable rate mortgages may pose a higher risk of delinquency and default because they require borrowers to make larger payments when interest rates rise. As of September 30, 2021, $22.6 million of our residential real estate mortgages, or 1.5% of our residential real estate loan portfolio were classified as nonaccrual, no loans were 90 or more days past due and still accruing, $2.6 million were 30 to 89 days past due, or 0.2%, and $1.5 billion were current, or 98.4%. We believe that since our loan portfolio consists primarily of locally originated loans, and since the majority of our borrowers are longer-term customers with lower LTV ratios, we face a relatively low risk of borrower default and delinquency.

Due to interest rate risk considerations, we generally sell in the secondary market loans originated with long-term fixed rates, for which we receive fee income. We may also selectively retain certain of these loans within our banks’ own portfolios where they are non-agency conforming, or where the terms of the loans make them favorable to retain. A portion of the loans we sold into the secondary market were sold with the servicing of those loans retained. The amount of loans serviced for others as of September 30, 2021 and 2020 was $12.7 billion and $10.1 billion, respectively. All other mortgage loans sold into the secondary market were sold without the retention of servicing rights.

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The Government National Mortgage Association ("GNMA") optional repurchase programs allow financial institutions acting as servicers to buyout individual delinquent mortgage loans that meet certain criteria from the securitized loan pool for which the institution was the original transferor of such loans. At the option of the servicer and without prior authorization from GNMA, the servicer may repurchase such delinquent loans for an amount equal to the remaining principal balance of the loan. Under FASB ASC Topic 860, “Transfers and Servicing,” this early buyout option is considered a conditional option until the delinquency criteria are met, at which time the option becomes unconditional. When the Company is deemed to have regained effective control over these loans under the unconditional repurchase option and the expected benefit of the potential repurchase is more than trivial, the loans can no longer be reported as sold and must be brought back onto the balance sheet as loans at fair value, regardless of whether the Company intends to exercise the early buyout option. These rebooked loans are reported as loans held-for-investment, part of the residential real estate portfolio, with the offsetting liability being reported in accrued interest payable and other liabilities. Rebooked GNMA loans held-for-investment amounted to $18.8 million at September 30, 2021, compared to $240.9 million balance at September 30, 2020. The decrease in balance from September 30, 2020 to September 30, 2021 was the result of the Company increasing its exercise of such early buyout options subsequent to June 30, 2020 and continuing such practice into 2021. When the early buyout option on these rebooked GNMA loans is exercised, the repurchased loans continue to be carried at fair value. Additionally, such loans typically transfer to mortgage loans held-for-sale at the time of early buyout as the Company’s intent is to cure and resell such loans subsequent to repurchase from GNMA. As of September 30, 2021, early buyout exercised mortgage loans held-for-sale totaled $354.6 million compared to $96.7 million as of September 30, 2020.

It is not our current practice to underwrite, and we have no plans to underwrite, subprime, Alt A, no or little documentation loans, or option ARM loans.

Premium finance receivables – commercial. FIRST Insurance Funding and FIFC Canada originated approximately $2.8 billion in commercial insurance premium finance receivables in the third quarter of 2021 as compared to $2.5 billion of originations in the third quarter of 2020. During the nine months ended September 30, 2021 and 2020, FIRST Insurance Funding and FIFC Canada originated approximately $8.2 billion and $7.4 billion, respectively, in commercial insurance premium finance receivables. FIRST Insurance Funding and FIFC Canada make loans to businesses to finance the insurance premiums they pay on their commercial insurance policies. The loans are originated by working through independent medium and large insurance agents and brokers located throughout the United States and Canada. The insurance premiums financed are primarily for commercial customers’ purchases of liability, property and casualty and other commercial insurance.

This lending involves relatively rapid turnover of the loan portfolio and high volume of loan originations. Because of the indirect nature of this lending through third party agents and brokers and because the borrowers are located nationwide and in Canada, this segment is more susceptible to third party fraud than relationship lending. The Company performs ongoing credit and other reviews of the agents and brokers, and performs various internal audit steps to mitigate against the risk of any fraud. The majority of these loans are purchased by the banks in order to more fully utilize their lending capacity as these loans generally provide the banks with higher yields than alternative investments.

Premium finance receivables—life insurance. Wintrust Life Finance originated approximately $371.9 million in life insurance premium finance receivables in the third quarter of 2021 as compared to $315.4 million of originations in the third quarter of 2020. During the nine months ended September 30, 2021 and 2020, Wintrust Life Finance originated approximately $1.1 billion and $960.6 million, respectively, in life insurance premium finance receivables. The Company continues to experience increased competition and pricing pressure within the current market. These loans are originated directly with the borrowers with assistance from life insurance carriers, independent insurance agents, financial advisors and legal counsel. The life insurance policy is the primary form of collateral. In addition, these loans often are secured with a letter of credit, marketable securities or certificates of deposit. In some cases, Wintrust Life Finance may make a loan that has a partially unsecured position.

Consumer and other. Included in the consumer and other loan category is a wide variety of personal and consumer loans to individuals. The banks originate consumer loans in order to provide a wider range of financial services to their customers. Consumer loans generally have shorter terms and higher interest rates than mortgage loans but generally involve more credit risk than mortgage loans due to the type and nature of the collateral.

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Maturities and Sensitivities of Loans to Changes in Interest Rates

The following table classifies the loan portfolio at September 30, 2021 by date at which the loans reprice or mature, and the type of rate exposure:

As of September 30, 2021	One 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 - PPP	141,394		940,594		—		1,081,988
Variable rate	6,765,489		3,323		60		6,768,872
Total commercial	$	7,391,654	$	2,959,105	$	837,213	$	11,187,972
Commercial real estate
Fixed rate	558,728		2,201,827		493,256		3,253,811
Variable rate	5,607,888		24,015		—		5,631,903
Total commercial real estate	$	6,166,616	$	2,225,842	$	493,256	$	8,885,714
Home equity
Fixed rate	14,818		4,618		45		19,481
Variable rate	328,181		—		—		328,181
Total home equity	$	342,999	$	4,618	$	45	$	347,662
Residential real estate
Fixed rate	19,165		6,415		819,685		845,265
Variable rate	58,698		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 rate	4,479,551		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 rate	9,046		438,568		21,813		469,427
Variable rate	6,186,026		—		—		6,186,026
Total premium finance receivables - life insurance	$	6,195,072	$	438,568	$	21,813	$	6,655,453
Consumer and other
Fixed rate	4,366		4,852		906		10,124
Variable rate	12,405		—		—		12,405
Total consumer and other	$	16,771	$	4,852	$	906	$	22,529
Total per category
Fixed rate	5,570,445		4,808,894		2,172,858		12,552,197
Fixed rate - PPP	141,394		940,594		—		1,081,988
Variable rate	18,958,687		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

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Past Due Loans and Non-Performing Assets

Our ability to manage credit risk depends in large part on our ability to properly identify and manage problem loans. To do so, the Company operates a credit risk rating system under which our credit management personnel assigns a credit risk rating to each loan at the time of origination and review loans on a regular basis to determine each loan’s credit risk rating on a scale of 1 through 10 with higher scores indicating higher risk. The credit risk rating structure used is shown below:

1 Rating —	Minimal Risk (Loss Potential – none or extremely low) (Superior asset quality, excellent liquidity, minimal leverage)
2 Rating —	Modest Risk (Loss Potential demonstrably low) (Very good asset quality and liquidity, strong leverage capacity)
3 Rating —	Average Risk (Loss Potential low but no longer refutable) (Mostly satisfactory asset quality and liquidity, good leverage capacity)
4 Rating —	Above Average Risk (Loss Potential variable, but some potential for deterioration) (Acceptable asset quality, little excess liquidity, modest leverage capacity)
5 Rating —	Management Attention Risk (Loss Potential moderate if corrective action not taken) (Generally acceptable asset quality, somewhat strained liquidity, minimal leverage capacity)
6 Rating —	Special Mention (Loss Potential moderate if corrective action not taken) (Assets in this category are currently protected, potentially weak, but not to the point of substandard classification)
7 Rating —	Substandard Accrual (Loss Potential distinct possibility that the bank may sustain some loss, but no discernable impairment) (Must have well defined weaknesses that jeopardize the liquidation of the debt)
8 Rating —	Substandard Non-accrual (Loss Potential well documented probability of loss, including potential impairment) (Must have well defined weaknesses that jeopardize the liquidation of the debt)
9 Rating —	Doubtful (Loss Potential extremely high) (These assets have all the weaknesses in those classified “substandard” with the added characteristic that the weaknesses make collection or liquidation in full, on the basis of current existing facts, conditions, and values, highly improbable)
10 Rating —	Loss (fully charged-off) (Loans in this category are considered fully uncollectible.)

Each loan officer is responsible for monitoring his or her loan portfolio, recommending a credit risk rating for each loan in his or her portfolio and ensuring the credit risk ratings are appropriate. These credit risk ratings are then ratified by the bank’s chief credit officer and/or concurrence credit officer. Credit risk ratings are determined by evaluating a number of factors including a borrower’s financial strength, cash flow coverage, collateral protection and guarantees. The Company maintains an internal loan review function as well as utilizes a third-party loan review provider to independently review a portion of the loan portfolio to evaluate the appropriateness of management-assigned credit risk ratings. These ratings are subject to further review at each of our bank subsidiaries by the applicable regulatory authority, including the FRB of Chicago and the Office of the Comptroller of the Currency ("OCC"), and are also reviewed by our internal audit staff.

The Company’s Problem Loan Reporting system includes all loans with credit risk ratings of 6 through 9. This system is designed to provide an on-going detailed tracking mechanism for each problem loan. Once management determines that a loan has deteriorated to a point where it has a credit risk rating of 6 or worse, the Company’s Managed Asset Division performs an overall credit and collateral review. As part of this review, all underlying collateral is identified and the valuation methodology is analyzed and tracked. As a result of this initial review by the Company’s Managed Asset Division, the credit risk rating is reviewed and a portion of the outstanding loan balance may be deemed uncollectible and, as a result, no longer share similar risk characteristics as its related pool. If that is the case, the individual loan is considered collateral dependent and individually assessed for an allowance for credit loss. The Company’s individual assessment utilizes an independent re-appraisal of the collateral (unless such a third-party evaluation is not possible due to the unique nature of the collateral, such as a closely-held business or thinly traded securities). In the case of commercial real estate collateral, an independent third party appraisal is ordered by the Company’s Real Estate Services Group to determine if there has been any change in the underlying collateral value. These independent appraisals are reviewed by the Real Estate Services Group and sometimes by independent third party valuation experts and may be adjusted depending upon market conditions.

Through the credit risk rating process, loans are reviewed to determine if they are performing in accordance with the original contractual terms. If the borrower has failed to comply with the original contractual terms, further action may be required by the Company, including a downgrade in the credit risk rating, movement to non-accrual status or a charge-off. If the Company

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determines that a loan amount or portion thereof is uncollectible, the loan’s credit risk rating is immediately downgraded to an 8 or 9 and the uncollectible amount is charged-off. Any loan that has a partial charge-off continues to be assigned a credit risk rating of an 8 or 9 for the duration of time that a balance remains outstanding. The Company undertakes a thorough and ongoing analysis to determine if additional impairment and/or charge-offs are appropriate and to begin a workout plan for the credit to minimize actual losses. In determining the appropriate charge-off for collateral-dependent loans, the Company considers the results of appraisals for the associated collateral.

The Company’s approach to workout plans and restructuring loans is built on the credit-risk rating process. A modification of a loan with an existing credit risk rating of 6 or worse or a modification of any other credit, which will result in a restructured credit risk rating of 6 or worse must be reviewed for TDR classification. In that event, our Managed Assets Division conducts an overall credit and collateral review. A modification of a loan is considered to be a TDR if both (1) the borrower is experiencing financial difficulty and (2) for economic or legal reasons, the bank grants a concession to a borrower that it would not otherwise consider. The modification of a loan where the credit risk rating is 5 or better both before and after such modification is not considered to be a TDR. Based on the Company’s credit risk rating system, it considers that borrowers whose credit risk rating is 5 or better are not experiencing financial difficulties and therefore, are not considered TDRs.

TDRs are individually assessed at the time of the modification and on a quarterly basis to measure an allowance for credit loss. The carrying amount of the loan is compared to the expected payments to be received, discounted at the loan's original rate, or for collateral dependent loans, to the fair value of the collateral. Any shortfall is recorded as a reserve.

For non-TDR loans, if based on current information and events, it is probable that the Company will be unable to collect all amounts due to it according to the contractual terms of the loan agreement, a loan is individually assessed for measuring the allowance for credit losses and if necessary, a reserve is established. In determining the appropriate reserve for collateral-dependent loans, the Company considers the results of appraisals for the associated collateral.

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Non-performing Assets

The following table sets forth the Company's non-performing assets and TDRs performing under the contractual terms of the loan agreement as of the dates shown.

(Dollars in thousands)	September 30, 2021			June 30, 2021			December 31, 2020			September 30, 2020
Loans past due greater than 90 days and still accruing (1):
Commercial	$	—		$	1,244		$	307		$	—
Commercial real estate	—			—			—			—
Home equity	164			—			—			—
Residential real estate	—			—			—			—
Premium finance receivables—commercial	5,811			3,570			12,792			12,177
Premium finance receivables—life insurance	—			—			—			—
Consumer and other	126			178			264			175
Total loans past due greater than 90 days and still accruing	6,101			4,992			13,363			12,352
Non-accrual loans:
Commercial	26,468			23,232			21,743			42,036
Commercial real estate	23,706			26,035			46,107			68,815
Home equity	3,449			3,478			6,529			6,329
Residential real estate	22,633			23,050			26,071			22,069
Premium finance receivables—commercial	7,300			6,418			13,264			21,080
Premium finance receivables—life insurance	—			—			—			—
Consumer and other	384			485			436			422
Total non-accrual loans	83,940			82,698			114,150			160,751
Total non-performing loans:
Commercial	26,468			24,476			22,050			42,036
Commercial real estate	23,706			26,035			46,107			68,815
Home equity	3,613			3,478			6,529			6,329
Residential real estate	22,633			23,050			26,071			22,069
Premium finance receivables—commercial	13,111			9,988			26,056			33,257
Premium finance receivables—life insurance	—			—			—			—
Consumer and other	510			663			700			597
Total non-performing loans	$	90,041		$	87,690		$	127,513		$	173,103
Other real estate owned	9,934			10,510			9,711			2,891
Other real estate owned—from acquisitions	3,911			5,062			6,847			6,326
Other repossessed assets	—			—			—			—
Total non-performing assets	103,886			$	103,262		$	144,071		$	182,320
Accruing TDRs not included within non-performing assets	$	38,468		$	44,019		$	47,023		$	46,410
Total non-performing loans by category as a percent of its own respective category’s period-end balance:
Commercial	0.24		%	0.21		%	0.18		%	0.34		%
Commercial real estate	0.27			0.30			0.54			0.82
Home equity	1.04			0.94			1.54			1.42
Residential real estate	1.46			1.51			2.07			1.59
Premium finance receivables—commercial	0.28			0.22			0.64			0.82
Premium finance receivables—life insurance	—			—			—			—
Consumer and other	2.26			7.35			2.17			1.08
Total non-performing loans	0.27		%	0.27		%	0.40		%	0.54		%
Total non-performing assets, as a percentage of total assets	0.22		%	0.22		%	0.32		%	0.42		%
Allowance for credit losses as a percentage of nonaccrual loans	352.70		%	367.64		%	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 were past due greater than 90 days and still accruing interest as of December 31, 2020 and September 30, 2020.

At this time, management believes reserves are appropriate to absorb losses that are expected upon the ultimate resolution of these credits. While the ultimate effect of the COVID-19 pandemic on non-performing assets still remains unknown, significant increases may occur in subsequent periods. Management will continue to actively review and monitor its loan portfolios, in an effort to identify problem credits in a timely manner. Please refer to Management's Discussion and Analysis of Financial Condition and Results of Operation - Overview section of this report for additional discussion of the impact of the COVID-19 pandemic.

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Loan Portfolio Aging

The tables below show the aging of the Company’s loan portfolio at September 30, 2021 and June 30, 2021:

	Nonaccrual		90+ days and still accruing		60-89 days past due		30-59 days past due		Current		Total Loans
As of September 30, 2021
(Dollars in thousands)
Loan Balances:
Commercial
Commercial, industrial and other, excluding PPP loans	$	26,468	$	—	$	9,768	$	24,086	$	10,045,662	$	10,105,984
Commercial PPP loans	—		—		—		1,138		1,080,850		1,081,988
Commercial real estate
Construction and development	1,030		—		—		12,631		1,330,054		1,343,715
Non-construction	22,676		—		5,395		67,187		7,446,741		7,541,999
Home equity	3,449		164		340		867		342,842		347,662
Residential real estate	22,633		—		1,540		1,076		1,522,487		1,547,736
Premium finance receivables
Commercial insurance loans	7,300		5,811		10,642		14,614		4,578,610		4,616,977
Life insurance loans	—		—		5,162		7,040		6,643,251		6,655,453
Consumer and other	384		126		16		125		21,878		22,529
Total loans, net of unearned income	$	83,940	$	6,101	$	32,863	$	128,764	$	33,012,375	$	33,264,043

	Nonaccrual		90+ days and still accruing		60-89 days past due		30-59 days past due		Current		Total Loans
As of June 30, 2021
(Dollars in thousands)
Loan Balances:
Commercial
Commercial, industrial and other, excluding PPP loans	$	23,232	$	1,244	$	5,204	$	18,468	$	9,514,721	$	9,562,869
Commercial PPP loans	—		—		—		10		1,879,397		1,879,407
Commercial real estate
Construction and development	1,030		—		—		2,207		1,382,012		1,385,249
Non-construction	25,005		—		4,382		17,491		7,246,242		7,293,120
Home equity	3,478		—		301		777		365,250		369,806
Residential real estate	23,050		—		1,584		2,139		1,503,512		1,530,285
Premium finance receivables
Commercial insurance loans	6,418		3,570		7,759		8,793		4,495,331		4,521,871
Life insurance loans	—		—		—		23,965		6,335,591		6,359,556
Consumer and other	485		178		22		75		8,264		9,024
Total loans, net of unearned income	$	82,698	$	4,992	$	19,252	$	73,925	$	32,730,320	$	32,911,187

As of September 30, 2021, $32.9 million of all loans, or 0.1%, were 60 to 89 days (or two payments) past due and $128.8 million of all loans 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 (or two payments) 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 loan portfolios continue to exhibit low delinquency ratios. Home equity loans at September 30, 2021 that were 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 were current with regards to the contractual terms of the loan agreements comprise 98.4% of total residential real estate loans outstanding.

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Non-performing Loans Rollforward

The table below presents a summary of non-performing loans for the periods presented:     

	Three Months Ended				Nine Months Ended
	September 30,		September 30,		September 30,		September 30,
(In thousands)	2021		2020		2021		2020
Balance at beginning of period	$	87,690	$	188,284	$	127,513	$	117,588
Additions from becoming non-performing in the respective period	9,341		19,771		31,997		72,769
Additions from the adoption of ASU 2016-13	—		—		—		37,285
Return to performing status	(3,322)		(6,202)		(3,976)		(9,254)
Payments received	(5,568)		(3,733)		(40,611)		(22,883)
Transfer to OREO and other repossessed assets	(720)		(598)		(5,752)		(1,895)
Charge-offs	(548)		(6,583)		(8,184)		(22,018)
Net change for niche loans (1)	3,168		(17,836)		(10,946)		1,511
Balance at end of period	$	90,041	$	173,103	$	90,041	$	173,103

(1)This includes activity for premium finance receivables and indirect consumer loans.

Prior to January 1, 2020, PCI loans were excluded from non-performing loans as they continued to earn interest income from the related accretable yield, independent of performance with contractual terms of the loan. As a result of the adoption of ASU 2016-13 effective January 1, 2020, the Company transitioned all previously classified PCI loans to PCD loans, which no longer maintain the prior pools and related accounting concepts. Specifically, recognition of interest income on PCD loans is considered at the individual asset level following the Company's accrual policies, instead of based upon the entire pool of loans. As such, after adoption, the Company includes PCD loans in total non-performing loans.

Allowance for Credit Losses

The allowance for credit losses, specifically the allowance for loans losses and the allowance for unfunded commitment losses, represents management’s estimate of lifetime expected credit losses in the loan portfolio. The allowance for credit losses is determined quarterly using a methodology that incorporates important risk characteristics of each loan, as described below under “How We Determine the Allowance for Credit Losses” in this Item 2.

Management determined that the allowance for credit losses was appropriate at September 30, 2021, and that the loan portfolio is well diversified and well secured, without undue concentration in any specific risk area. While this process involves a high degree of management judgment, the allowance for credit losses is based on a comprehensive, well documented, and consistently applied analysis of the Company’s loan portfolio. This analysis takes into consideration all available information existing as of the financial statement date, including environmental factors such as economic, industry, geographical and political factors, when considered applicable. The relative level of allowance for credit losses is reviewed and compared to industry peers. This review encompasses levels of total non-performing loans, portfolio mix, portfolio concentrations and overall levels of net charge-off. Historical trending of both the Company’s results and the industry peers is also reviewed to analyze comparative significance.

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Allowance for Credit Losses

The following table summarizes the activity in our allowance for credit losses, specifically related to loans and unfunded lending-related commitments, during the periods indicated.

 

	Three Months Ended						Nine Months Ended
(Dollars in thousands)	September 30, 2021			September 30, 2020			September 30, 2021			September 30, 2020
Allowance for credit losses at beginning of period	$	304,031		$	373,109		$	379,910		$	158,461
Cumulative effect adjustment from the adoption of ASU 2016-13	—			—			—			47,344
Provision for credit losses	(7,909)			25,028			(68,584)			213,051
Other adjustments	(65)			55			(2)			24
Charge-offs:
Commercial	1,352			5,270			16,370			13,109
Commercial real estate	406			1,529			2,798			9,323
Home equity	59			138			201			1,378
Residential real estate	10			83			15			777
Premium finance receivables	1,390			4,640			6,706			11,258
Consumer and other	112			103			330			330
Total charge-offs	3,329			11,763			26,420			36,175
Recoveries:
Commercial	816			428			2,170			924
Commercial real estate	373			175			1,087			931
Home equity	313			111			742			451
Residential real estate	5			25			245			115
Premium finance receivables	1,728			1,720			6,749			3,663
Consumer and other	92			20			158			119
Total recoveries	3,327			2,479			11,151			6,203
Net charge-offs	(2)			(9,284)			(15,269)			(29,972)
Allowance for credit losses at period end	$	296,055		$	388,908		$	296,055		$	388,908
Annualized net charge-offs by category as a percentage of its own respective category’s average:
Commercial	0.02		%	0.16		%	0.16		%	0.15		%
Commercial real estate	0.00			0.06			0.03			0.14
Home equity	(0.28)			0.02			(0.19)			0.26
Residential real estate	0.00			0.02			(0.02)			0.07
Premium finance receivables	(0.01)			0.12			0.00			0.11
Consumer and other	0.26			0.49			0.54			0.41
Total loans, net of unearned income	0.00		%	0.12		%	0.06		%	0.14		%
Loans at period-end	$	33,264,043		$	32,135,555
Allowance for loan losses as a percentage of loans at period end	0.75		%	1.01		%
Allowance for loan and unfunded loan-related commitment losses as a percentage of loans at period end	0.89			1.21
Allowance for loan and unfunded loan-related commitment losses as a percentage of loans at period end, excluding PPP loans	0.92			1.35

The allowance for credit losses, as related to loans and lending-related commitments, is comprised of an allowance for loan losses, which is determined with respect to loans that we have originated, and an allowance for unfunded commitment losses. A separate allowance for held-to-maturity securities losses is measured related to such debt securities portfolio. Our allowance for unfunded commitment losses is determined with respect to funds that we have committed to lend but for which funds have not yet been disbursed and is computed using a methodology similar to that used to determine the allowance for loan losses. The allowance for unfunded lending-related commitments totaled $47.4 million and $62.9 million as of September 30, 2021 and September 30, 2020, respectively.

Additions to the allowance for credit losses are charged to earnings through the provision for credit losses. Charge-offs represent the amount of loans that have been determined to be uncollectible during a given period, and are deducted from the allowance for credit losses, and recoveries represent the amount of collections received from loans that had previously been charged off, and are credited to the allowance for credit losses. See Note 6 of the Consolidated Financial Statements presented

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under Item 1 of this report for further discussion of activity within the allowance for credit losses during the period and the relationship with respective loan balances for each loan category and the total loan portfolio.

How We Determine the Allowance for Credit Losses

The allowance for credit losses is measured on a collective or pooled basis by loans that share similar risk characteristics. If the loan no longer exhibits risk characteristics similar to that of a pool, typically due to credit deterioration of the related borrower, the Company analyzes the loan for purposes of individually assessing a specific allowance for credit loss as part of the Problem Loan Reporting system review. A separate reserve is collectively measured for loans continuing to share risk characteristics and, as a result, remaining in the pools. See Note 6 of the Consolidated Financial Statements presented under Item 1 of this report for further discussion of the allowance for credit losses measurement process.

Collective Measurement

The allowance for credit losses is measured on a collective or pooled basis when similar risk characteristics exist, based upon the segmentation discussed above. The Company utilizes modeling methodologies that estimate lifetime credit loss rates on each pool, including methodologies estimating the probability of default and loss given default on specific segments. Historical credit loss history is adjusted for reasonable and supportable forecasts developed by the Company on a quantitative or qualitative basis and incorporates third party economic forecasts. Reasonable and supportable forecasts consider the macroeconomic factors that are most relevant to evaluating and predicting expected credit losses in the Company's financial assets. Currently, the Company utilizes an eight quarter forecast period using a single macroeconomic scenario provided by a third party and reviewed within the Company's governance structure. For periods beyond the ability to develop reasonable and supportable forecasts, the Company reverts to historical loss rates at an input level, straight-line over a four quarter reversion period. Expected credit losses are measured over the contractual term of the financial asset with consideration of expected prepayments. Expected extensions, renewals or modifications of the financial asset are only considered when either 1) the expected extension, renewal or modification is contained within the existing agreement and is not unconditionally cancelable, or 2) the expected extension, renewal or modification is reasonably expected to result in a TDR. The methodologies discussed above are applied to both current asset balances on the Company's Consolidated Statements of Condition and off-balance sheet commitments (i.e. unfunded lending-related commitments).

Individual Assessment

Loans with a credit risk rating of a 6 through 9 are reviewed on a monthly basis to determine if (a) an amount is deemed uncollectible (a charge-off) or (b) it is probable that the Company will be unable to collect amounts due in accordance with the original contractual terms of the loan. In cases in which collectability is not probable, the loan is considered to no longer exhibit shared risk characteristics of a pool and as a result, is individually assessed for allowance for credit losses measurement purposes. If a loan is individually assessed, the carrying amount of the loan is compared to the expected payments to be received, discounted at the loan’s original rate, or for foreclosure-probable and collateral dependent loans, to the fair value of the collateral less the estimated cost to sell, when appropriate under accounting rules. Any shortfall is recorded as a specific reserve within the allowance for credit losses.

Home Equity, Residential Real Estate and Consumer Loans

The determination of the appropriate allowance for credit losses for home equity, residential real estate and consumer loans differs from the process used for commercial and commercial real estate loans. These portfolios utilize the weighted-average remaining maturity ("WARM") methodology. The WARM methodology is an assumption-based approach that utilizes historical loss and prepayment information as the basis to estimate prepayment and credit adjusted contractual cash flows. The Company considers a qualitative factor to adjust historical information for current conditions and reasonable and supportable forecasts. The same credit risk rating system and Problem Loan Reporting systems are used. The only significant difference is in how the credit risk ratings are assigned to these loans.

The home equity loan portfolio is reviewed on a loan by loan basis by analyzing current FICO scores of the borrowers, line availability, recent line usage, an approaching maturity and the aging status of the loan. Certain of these factors, or combination of these factors, may cause a portion of the credit risk ratings of home equity loans across all banks to be downgraded. Similar to commercial and commercial real estate loans, once a home equity loan’s credit risk rating is downgraded to a 6 through 9, the Company’s Managed Asset Division reviews and advises the subsidiary banks as to collateral valuations and as to the ultimate resolution of the credits that deteriorate to a non-accrual status to minimize losses.

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Residential real estate loans that are downgraded to a credit risk rating of 6 through 9 also enter the problem loan reporting system and have the underlying collateral evaluated by the Managed Assets Division.

Premium Finance Receivables

The determination of the appropriate allowance for credit losses for premium finance receivables is an assumption-based approach focusing on historical loss rates in the portfolio, adjusted qualitatively for current macroeconomic conditions and reasonable and supportable forecasts.

Methodology in Assessing Impairment and Charge-off Amounts

In determining the amount of reserves or charge-offs associated with collateral dependent loans, the Company values the loan generally by starting with a valuation obtained from an appraisal of the underlying collateral and then deducting estimated selling costs, if appropriate, to arrive at a net appraised value. We obtain the appraisals of the underlying collateral typically on an annual basis from one of a pre-approved list of independent, third party appraisal firms. Types of appraisal valuations include “as-is,” “as-complete,” “as-stabilized,” bulk, fair market, liquidation and “retail sellout” values.

In many cases, the Company simultaneously values the underlying collateral by marketing the property to market participants interested in purchasing properties of the same type. If the Company receives offers or indications of interest, we will analyze the price and review market conditions to assess whether in light of such information the appraised value overstates the likely price and that a lower price would be a better assessment of the market value of the property and would enable us to liquidate the collateral. Additionally, the Company takes into account the strength of any guarantees or other credit enhancements, and the ability of the borrower to provide value related to those guarantees in determining the ultimate charge-off or reserve associated with any individually assessed loans. Accordingly, the Company may charge-off a loan to a value below the net appraised value if it believes that an expeditious liquidation is desirable in the circumstance and it has legitimate offers or other indications of interest to support a value that is less than the net appraised value. Alternatively, the Company may carry a loan at a value that is in excess of the appraised value if the Company has a guarantee from a borrower or other credit enhancements that the Company believes has realizable value. In evaluating the strength of any guarantee, the Company evaluates the financial wherewithal of the guarantor, the guarantor’s reputation, and the guarantor’s willingness and desire to work with the Company. The Company then conducts a review of the strength of a guarantee on a frequency established as the circumstances and conditions of the borrower warrant.

In circumstances where the Company has received an appraisal but has no third party offers or indications of interest, the Company may enlist the input of realtors in the local market as to the highest valuation that the realtor believes would result in a liquidation of the property given a reasonable marketing period of approximately 90 days. To the extent that the realtors’ indication of market clearing price under such scenario is less than the net appraised valuation, the Company may take a charge-off on the loan to a valuation that is less than the net appraised valuation.

The Company may also charge-off a loan below the net appraised valuation if the Company holds a junior mortgage position in a piece of collateral whereby the risk to acquiring control of the property through the purchase of the senior mortgage position is deemed to potentially increase the risk of loss upon liquidation due to the amount of time to ultimately market the property and the volatile market conditions. In such cases, the Company may abandon its junior mortgage and charge-off the loan balance in full.

In other cases, the Company may allow the borrower to conduct a “short sale,” which is a sale where the Company allows the borrower to sell the property at a value less than the amount of the loan. Many times, it is possible for the current owner to receive a better price than if the property is marketed by a financial institution which the market place perceives to have a greater desire to liquidate the property at a lower price. To the extent that we allow a short sale at a price below the value indicated by an appraisal, we may take a charge-off beyond the value that an appraisal would have indicated.

Other market conditions may require a reserve to bring the carrying value of the loan below the net appraised valuation such as litigation surrounding the borrower and/or property securing our loan or other market conditions impacting the value of the collateral.

Having determined the net value based on the factors such as those noted above and compared that value to the book value of the loan, the Company arrives at a charge-off amount or a specific reserve included in the allowance for credit losses. In summary, for collateral dependent loans, appraisals are used as the fair value starting point in the estimate of net value. Estimated costs to sell are deducted from the appraised value, when appropriate under current accounting rules, to arrive at the net appraised value. Although an external appraisal is the primary source of valuation utilized for charge-offs on collateral

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dependent loans, alternative sources of valuation may become available between appraisal dates. As a result, we may utilize values obtained through these alternative sources, which include purchase and sale agreements, legitimate indications of interest, negotiated short sales, realtor price opinions, sale of the note or support from guarantors, as the basis for charge-offs. These alternative sources of value are used only if deemed to be more representative of value based on updated information regarding collateral resolution. In addition, if an appraisal is not deemed current, a discount to appraised value may be utilized. Any adjustments from appraised value to net value are detailed and justified in an impairment analysis, which is reviewed and approved by the Company’s Managed Assets Division.

TDRs

At September 30, 2021, the Company had $48.5 million in loans modified in TDRs. The $48.5 million in TDRs represents 254 credits in which economic concessions were granted to certain borrowers to better align the terms of their loans with their current ability to pay. The balance decreased from $55.7 million representing 273 credits at June 30, 2021 and decreased from $78.5 million representing 291 credits at September 30, 2020.

Concessions were granted on a case-by-case basis working with these borrowers to find modified terms that would assist them in retaining their businesses or their homes and attempt to keep these loans in an accruing status for the Company. Typical concessions include reduction of the interest rate on the loan to a rate considered lower than market and other modification of terms including forgiveness of a portion of the loan balance, extension of the maturity date, and/or modifications from principal and interest payments to interest-only payments for a certain period. See Note 6 of the Consolidated Financial Statements in Item 1 of this report for further discussion regarding the effectiveness of these modifications in keeping the modified loans current based upon contractual terms.

Subsequent to its restructuring, any TDR that becomes nonaccrual or more than 90 days past-due and still accruing interest will be included in the Company’s non-performing loans. Each TDR was individually assessed when measuring the allowance for credit losses at September 30, 2021 and approximately $2.3 million was appropriately reserved for through the Company’s normal reserving methodology in the Company’s allowance for credit losses. Additionally, at September 30, 2021, the Company was committed to lend an additional $127,000 of funds to borrowers under the contractual terms of TDRs.

The table below presents a summary of TDRs for the respective periods, presented by loan category and accrual status:

	September 30,		June 30,		September 30,
(In thousands)	2021		2021		2020
Accruing TDRs:
Commercial	$	4,532	$	6,911	$	7,863
Commercial real estate	8,385		9,659		10,846
Residential real estate and other	25,551		27,449		27,701
Total accruing TDRs	$	38,468	$	44,019	$	46,410
Non-accrual TDRs: (1)
Commercial	$	3,079	$	4,104	$	13,132
Commercial real estate	3,239		3,434		13,601
Residential real estate and other	3,685		4,190		5,392
Total non-accrual TDRs	$	10,003	$	11,728	$	32,125
Total TDRs:
Commercial	$	7,611	$	11,015	$	20,995
Commercial real estate	11,624		13,093		24,447
Residential real estate and other	29,236		31,639		33,093
Total TDRs	$	48,471	$	55,747	$	78,535

(1)Included in total non-performing loans.

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TDR Rollforward

The tables below present a summary of TDRs as of September 30, 2021 and September 30, 2020, and show the change in the balance during those periods:

Three months ended September 30, 2021 (In thousands)	Commercial		Commercial Real Estate		Residential Real Estate and Other		Total
Balance at beginning of period	$	11,015	$	13,093	$	31,639	$	55,747
Additions during the period	1		—		558		559
Reductions:
Charge-offs	(61)		—		—		(61)
Transferred to OREO and other repossessed assets	—		—		—		—
Removal of TDR loan status (1)	(2,121)		—		(617)		(2,738)
Payments received	(1,223)		(1,469)		(2,344)		(5,036)
Balance at period end	$	7,611	$	11,624	$	29,236	$	48,471

Three months ended September 30, 2020 (In thousands)	Commercial		Commercial Real Estate		Residential Real Estate and Other		Total
Balance at beginning of period	$	26,126	$	27,651	$	29,771	$	83,548
Additions during the period	1,013		1,045		5,538		7,596
Reductions:
Charge-offs	(4,808)		(1,439)		(33)		(6,280)
Transferred to OREO and other repossessed assets	—		—		—		—
Removal of TDR loan status (1)	—		—		(866)		(866)
Payments received	(1,336)		(2,810)		(1,317)		(5,463)
Balance at period end	$	20,995	$	24,447	$	33,093	$	78,535

Nine months ended September 30, 2021 (In thousands)	Commercial		Commercial Real Estate		Residential Real Estate and Other		Total
Balance at beginning of period	$	18,190	$	16,726	$	33,276	$	68,192
Additions during the period	547		2,944		3,393		6,884
Reductions:
Charge-offs	(2,358)		(23)		(7)		(2,388)
Transferred to OREO and other repossessed assets	(99)		—		(459)		(558)
Removal of TDR loan status (1)	(2,121)		(800)		(1,556)		(4,477)
Payments received	(6,548)		(7,223)		(5,411)		(19,182)
Balance at period end	$	7,611	$	11,624	$	29,236	$	48,471

Nine months ended September 30, 2020 (In thousands)	Commercial		Commercial Real Estate		Residential Real Estate and Other		Total
Balance at beginning of period	$	18,739	$	16,873	$	28,224	$	63,836
Additions during the period	10,046		19,180		11,184		40,410
Reductions:
Charge-offs	(4,808)		(7,508)		(419)		(12,735)
Transferred to OREO and other repossessed assets	—		—		(945)		(945)
Removal of TDR loan status (1)	—		—		(866)		(866)
Payments received	(2,982)		(4,098)		(4,085)		(11,165)
Balance at period end	$	20,995	$	24,447	$	33,093	$	78,535

(1)Loan was previously classified as a TDR and subsequently performed in compliance with the loan's modified terms for a period of six months (including over a calendar year-end) at a modified interest rate which represented a market rate at the time of restructuring. Per our TDR policy, the TDR classification is removed.

On March 22, 2020, interagency guidance was issued titled "Interagency Statement on Loan Modifications and Reporting for Financial Institutions Working with Customers Affected by the Coronavirus" that encourages financial institutions to work prudently with borrowers who are or may be unable to meet their contractual payment obligations due to the effect of COVID-19. Additionally, Section 4013 of the CARES Act further provides that a qualified loan modification is exempt by law

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from classification as a TDR as defined by GAAP, from the period beginning March 1, 2020 until the earlier of December 31, 2020 (subsequently extended to January 1, 2022 under CAA), or the date that is 60 days after the date on which the national emergency concerning the COVID-19 outbreak declared by the President of the United States under the National Emergencies Act (50 U.S.C. 1601 et seq.) terminates. Accordingly, we are offering short-term modifications made in response to COVID-19 to borrowers who are current and otherwise not past due. These include short-term, 180 days or less, modifications in the form of payment deferrals, fee waivers, extensions of repayment terms, or other delays in payment that are insignificant. Modifications qualifying for the exemption from TDR classification totaled approximately $57.3 million as of September 30, 2021.

The table below presents a summary of all COVID-19 related modified loans, including those not qualifying for the exemption under Section 4013, as of September 30, 2021, presented by loan category and type of modification:

(In thousands)	Interest-only		Full Payment Deferral		Line Increases		Other		Total
Commercial	$	1,082	$	3,823	$	—	$	2,256	$	7,161
Commercial real estate	59,955		1,478		—		3,303		64,736
Home equity	—		—		—		—		—
Residential real estate	—		—		—		—		—
Premium finance receivables	—		70		—		—		70
Consumer and other	—		—		1		—		1
Total loans, net of unearned income	$	61,037	$	5,371	$	1	$	5,559	$	71,968

Other Real Estate Owned ("OREO")

In certain circumstances, the Company is required to take action against the real estate collateral of specific loans. The Company uses foreclosure only as a last resort for dealing with borrowers experiencing financial hardships. The Company employs extensive contact and restructuring procedures to attempt to find other solutions for our borrowers. The tables below present a summary of other real estate owned and shows the activity for the respective periods and the balance for each property type:

	Three Months Ended				Nine Months Ended
(In thousands)	September 30, 2021		September 30, 2020		September 30, 2021		September 30, 2020
Balance at beginning of period	$	15,572	$	10,197	$	16,558	$	15,171
Disposal/resolved	(1,949)		(1,532)		(7,263)		(6,937)
Transfers in at fair value, less costs to sell	315		777		5,562		1,731
Fair value adjustments	(93)		(225)		(1,012)		(748)
Balance at end of period	$	13,845	$	9,217	$	13,845	$	9,217

 

	Period End
(In thousands)	September 30, 2021		June 30, 2021		September 30, 2020
Residential real estate	$	1,592	$	1,952	$	1,839
Residential real estate development	934		1,030		—
Commercial real estate	11,319		12,590		7,378
Total	$	13,845	$	15,572	$	9,217

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Deposits

Total deposits at September 30, 2021 were $40.0 billion, an increase of $4.1 billion, or 11%, compared to total deposits at September 30, 2020. See Note 9 to the Consolidated Financial Statements in Item 1 of this report for a summary of period end deposit balances.

The following table sets forth, by category, the maturity of time certificates of deposit as of September 30, 2021:

Time Certificates of Deposit Maturity/Re-pricing Analysis As of September 30, 2021 (Dollars in thousands)	Total Time Certificates of Deposits		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.

The following table sets forth, by category, the composition of average deposit balances and the relative percentage of total average deposits for the periods presented:

	Three Months Ended
	September 30, 2021				June 30, 2021				September 30, 2020
(Dollars in thousands)	Balance		Percent		Balance		Percent		Balance		Percent
Non-interest-bearing	$	12,834,084	32	%	$	12,246,274	32	%	$	9,988,769	28	%
NOW and interest-bearing demand deposits	3,757,677		10		3,626,424		10		3,435,089		10
Wealth management deposits	4,672,402		12		4,369,998		11		4,329,300		12
Money market	10,027,424		25		9,547,167		25		9,332,668		26
Savings	3,851,523		10		3,728,271		10		3,419,586		10
Time certificates of deposit	4,236,317		11		4,632,796		12		4,900,839		14
Total average deposits	$	39,379,427	100	%	$	38,150,930	100	%	$	35,406,251	100	%

Total average deposits for the third quarter of 2021 were $39.4 billion, an increase of $4.0 billion, or 11%, from the third quarter of 2020. The increase in average deposits is primarily attributable to additional deposits related to PPP lending and organic growth of retail deposits.

Wealth management deposits are funds from the brokerage customers of Wintrust Investments, CDEC, trust and asset management customers of the Company and brokerage customers from unaffiliated companies which have been placed into deposit accounts of the banks (“wealth management deposits” in the table above). Wealth Management deposits consist primarily of money market accounts. Consistent with reasonable interest rate risk parameters, these funds have generally been invested in loan production of the banks as well as other investments suitable for banks.

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Brokered Deposits

While the Company obtains a portion of its total deposits through brokered deposits, the Company does so primarily as an asset-liability management tool to assist in the management of interest rate risk, and the Company does not consider brokered deposits to be a vital component of its current liquidity resources. Historically, brokered deposits have represented a small component of the Company’s total deposits outstanding, as set forth in the table below:

	September 30,						December 31,
(Dollars in thousands)	2021			2020			2020			2019			2018
Total deposits	$	39,952,558		$	35,844,422		$	37,092,651		$	30,107,138		$	26,094,678
Brokered deposits	1,877,093			2,293,328			1,843,227			1,011,404			1,071,562
Brokered deposits as a percentage of total deposits	4.7		%	6.4		%	5.0		%	3.4		%	4.1		%

Brokered deposits include certificates of deposit obtained through deposit brokers, deposits received through the Certificate of Deposit Account Registry Program (“CDARs”), and wealth management deposits of brokerage customers from unaffiliated companies which have been placed into deposit accounts of the banks.

Other Funding Sources

Although deposits are the Company’s primary source of funding its interest-earning assets, the Company’s ability to manage the types and terms of deposits is somewhat limited by customer preferences and market competition. As a result, in addition to deposits and the issuance of equity securities and the retention of earnings, the Company uses several other funding sources to support its growth. These sources include short-term borrowings, notes payable, FHLB advances, subordinated debt, secured borrowings and junior subordinated debentures. The Company evaluates the terms and unique characteristics of each source, as well as its asset-liability management position, in determining the use of such funding sources.

The following table sets forth, by category, the composition of the average balances of other funding sources for the quarterly periods presented:

	Three Months Ended
	September 30,		June 30,		September 30,
(In thousands)	2021		2021		2020
FHLB advances	$	1,241,073	$	1,235,142	$	1,228,421
Other borrowings:
Notes payable	90,960		96,306		112,345
Short-term borrowings	13,183		15,034		7,784
Secured borrowings	344,724		350,219		326,964
Other	63,918		64,365		65,694
Total other borrowings	$	512,785	$	525,924	$	512,787
Subordinated notes	436,746		436,644		436,323
Junior subordinated debentures	253,566		253,566		253,566
Total other funding sources	$	2,444,170	$	2,451,276	$	2,431,097

FHLB advances provide the banks with access to fixed-rate funds that are useful in mitigating interest rate risk and achieving an acceptable interest rate spread on fixed-rate loans or securities. Additionally, the banks have the ability to borrow shorter-term, overnight funding from the FHLB for other general purposes. FHLB advances to the banks totaled $1.2 billion at each of September 30, 2021, June 30, 2021 and September 30, 2020.

Notes payable balances represent the balances on a $200.0 million loan agreement (“Credit Agreement”) with unaffiliated banks consisting of a $50.0 million revolving credit facility (“Revolving Credit Facility”) and a $150.0 million term facility (“Term Facility”). Both the Revolving Credit Facility and the Term Facility are available for corporate purposes such as to provide capital to fund continued growth at existing bank subsidiaries, possible future acquisitions and for other general corporate matters. At September 30, 2021 and 2020, the Company had a balance under the Term Facility of $85.7 million and $107.1 million, respectively. The Company was contractually required to borrow the entire amount of the Term Facility on September 18, 2018 and all such borrowings must be repaid by September 18, 2023. At September 30, 2021, the Company had no outstanding balance under the Revolving Credit Facility.

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Short-term borrowings include securities sold under repurchase agreements and federal funds purchased. These borrowings totaled $14.1 million at September 30, 2021 compared to $15.6 million at June 30, 2021 and $8.0 million at September 30, 2020. Securities sold under repurchase agreements represent sweep accounts for certain customers in connection with master repurchase agreements at the banks. This funding category typically fluctuates based on customer preferences and daily liquidity needs of the banks, their customers and the banks’ operating subsidiaries.

The balance of secured borrowings primarily represents a third party Canadian transaction (“Canadian Secured Borrowing”). Under the Canadian Secured Borrowing, the Company, through its subsidiary, FIFC Canada, sells an undivided co-ownership interest in all receivables owed to FIFC Canada to an unrelated third party in exchange for cash payments pursuant to a receivables purchase agreement (“Receivables Purchase Agreement”).

Other borrowings at September 30, 2021 include a fixed-rate promissory note issued by the Company in June 2017 and amended in March 2020 (“Fixed-Rate Promissory Note”) related to and secured by three office buildings owned by the Company. At September 30, 2021, the Fixed-Rate Promissory Note had a balance of $63.8 million compared to $64.2 million at June 30, 2021 and $65.5 million at September 30, 2020. Under the Fixed-Rate Promissory Note, during the three months ended March 31, 2020, the Company made monthly principal payments and paid interest at a fixed rate of 3.36%. An amendment to the Fixed-Rate Promissory Note was executed on and became effective as of March 31, 2020. The amendment increased the principal amount to $66.4 million, reduced the interest rate to 3.00% and extended the maturity date to March 31, 2025.

At September 30, 2021, the Company had outstanding subordinated notes totaling $436.8 million compared to $436.7 million and $436.4 million outstanding at June 30, 2021 and September 30, 2020, respectively. During the second quarter of 2019, the Company issued $300.0 million of subordinated notes, receiving $296.7 million in net proceeds. The notes have a stated interest rate of 4.85% and mature in June 2029. In 2014, the Company issued $140.0 million of subordinated notes receiving $139.1 million in net proceeds. These notes have a stated interest rate of 5.00% and mature in June 2024. Subordinated notes are stated at par adjusted for unamortized costs paid related to the different issuances of such debt.

The Company had $253.6 million of junior subordinated debentures outstanding as of September 30, 2021, June 30, 2021 and September 30, 2020. The amounts reflected on the balance sheet represent the junior subordinated debentures issued to eleven trusts by the Company and equal the amount of the preferred and common securities issued by the trusts. At September 30, 2021, the Company included $245.5 million of the junior subordinated debentures, net of common securities, in Tier 2 regulatory capital.

In response to the COVID-19 pandemic, the Company will continue to manage funding sources discussed above, including the utilization of availability with the FHLB and FRB and the Revolving Credit Facility with unaffiliated banks, to access needed liquidity in a timely manner. Please refer to Management’s Discussion and Analysis of Financial Condition and Results of Operation - Overview and - Liquidity sections of this report for additional discussion of the impact of the COVID-19 pandemic.

See Notes 10 and 11 of the Consolidated Financial Statements presented under Item 1 of this report for details of period end balances and other information for these various funding sources.

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Shareholders’ Equity

The following tables reflect various consolidated measures of capital as of the dates presented and the capital guidelines established for a bank holding company:

	September 30, 2021		June 30, 2021		September 30, 2020
Tier 1 leverage ratio	8.1	%	8.2	%	8.2	%
Risk-based capital ratios:
Tier 1 capital ratio	9.9		10.1		10.2
Common equity tier 1 capital ratio	8.9		9.0		9.0
Total capital ratio	12.1		12.4		12.9
Other ratio:
Total average equity-to-total average assets(1)	9.2		9.3		9.4

(1)Based on quarterly average balances.

	Minimum Capital Requirements		Minimum Ratio + Capital Conservation Buffer(1)	Minimum Well Capitalized(2)
Leverage ratio	4.0	%	N/A	N/A
Tier 1 capital to risk-weighted assets	6.0		8.50	6.0
Common equity Tier 1 capital to risk-weighted assets	4.5		7.00	N/A
Total capital to risk-weighted assets	8.0		10.50	10.0

(1)Reflects the Capital Conservation Buffer of 2.5%.

(2)Reflects the well-capitalized standard applicable to the Company for purposes of the Federal Reserve’s Regulation Y. The Federal Reserve has not yet revised the well-capitalized standard for bank holding companies (“BHCs”) to reflect the higher capital requirements imposed under the U.S. Basel III Rule or to add Common Equity Tier 1 capital ratio and Tier 1 leverage ratio requirements to this standard. As a result, the Common Equity Tier 1 capital ratio and Tier 1 leverage ratio are denoted as “N/A” in this column. If the Federal Reserve were to apply the same or a very similar well-capitalized standard to BHCs as the standard applicable to our subsidiary banks, we believe the Company’s capital ratios as of September 30, 2021 would exceed such revised well-capitalized standard.

In February 2019, the OCC, the Board of Governors of the Federal Reserve System, and the FDIC issued a final rule to address the changes to the measurement of the allowance for credit losses, including banking organizations’ implementation of CECL. The final rule provides banking organizations the option to phase in over a three-year period the adverse effects on regulatory capital that may result from the adoption of the new accounting standard as of its date of adoption, or January 1, 2020. In March 2020, the OCC, the Board of Governors of the Federal Reserve System, and the FDIC published an interim final rule to delay the estimated impact on regulatory capital stemming from the implementation of CECL. The interim final rule maintains the three-year transition option in the previous rule and provides banks the option to delay for two years an estimate of CECL’s effect on regulatory capital, relative to the incurred loss methodology’s effect on regulatory capital, followed by a three-year transition period (five-year transition option). The Company adopted the capital transition relief over the permissible five-year period.

The Company’s principal sources of funds at the holding company level are dividends from its subsidiaries, borrowings under its loan agreement with unaffiliated banks and proceeds from the issuances of subordinated debt and additional equity. Refer to Notes 10, 11 and 17 of the Consolidated Financial Statements in Item 1 for further information on these various funding sources. Management is committed to maintaining the Company’s capital levels above the “Well Capitalized” levels established by the FRB for bank holding companies.

The Company’s 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, April and July of 2021, the Company declared a quarterly cash dividend of $0.31 per common share. In January, April, July and October of 2020, the Company declared a quarterly cash dividend of $0.28 per common share.

In response to the COVID-19 pandemic, the Company continues to leverage its capital management framework to assess and monitor risk when making capital decisions. The Company will continuously evaluate the adequacy of capital as a result of the

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uncertainty from the COVID-19 pandemic. Please refer to Management’s Discussion and Analysis of Financial Condition and Results of Operation - Overview section of this report for additional discussion of the impact of the COVID-19 pandemic.

See Note 17 of the Consolidated Financial Statements presented under Item 1 of this report for details on the Company’s issuance of Series D Preferred Stock in June 2015 and Series E Preferred Stock and associated Depositary Shares in May 2020. The Company hereby incorporates by reference Note 17 of the Consolidated Financial Statements presented under Item 1 of this report in its entirety.

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LIQUIDITY

The Company manages the liquidity position of its banking operations to ensure that sufficient funds are available to meet customers’ needs for loans and deposit withdrawals. The management process includes the utilization of stress testing processes and other aspects of the Company's liquidity management framework to assess and monitor risk, and inform decision making. The liquidity to meet the demands of customers is provided by maturing assets, liquid assets that can be converted to cash and the ability to attract funds from external sources. Liquid assets refer to money market assets such as Federal funds sold and interest-bearing deposits with banks, as well as available-for-sale debt securities and equity securities with readily determinable fair values which are not pledged to secure public funds. In addition, trade date receivables represent certain sales or calls of available-for-sale securities that await cash settlement, typically in the month following the trade date.

In accordance with the liquidity management noted above, deposit growth and increases in borrowings from various sources have resulted in accumulating liquidity assets in recent periods. In the third quarter of 2021, we maintained our liquid assets to ensure that we have the balance sheet strength to serve our clients through the COVID-19 pandemic. As a result, the Company believes that it has sufficient funds and access to funds to effectively manage through the COVID-19 pandemic as well as 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. Please refer to Management's Discussion and Analysis of Financial Condition and Results of Operation -Overview section of this report for additional discussion of the impact of the COVID-19 pandemic.

INFLATION

A banking organization’s assets and liabilities are primarily monetary. Changes in the rate of inflation do not have as great an impact on the financial condition of a bank as do changes in interest rates. Moreover, interest rates do not necessarily change at the same percentage as inflation. Accordingly, changes in inflation are not expected to have a material impact on the Company. An analysis of the Company’s asset and liability structure provides the best indication of how the organization is positioned to respond to changing interest rates. See “Quantitative and Qualitative Disclosures About Market Risk” section of this report for additional information.

FORWARD-LOOKING STATEMENTS

This document contains forward-looking statements within the meaning of federal securities laws. Forward-looking information can be identified through the use of words such as “intend,” “plan,” “project,” “expect,” “anticipate,” “believe,” “estimate,” “contemplate,” “possible,” “will,” “may,” “should,” “would” and “could.” Forward-looking statements and information are not historical facts, are premised on many factors and assumptions, and represent only management’s expectations, estimates and projections regarding future events. Similarly, these statements are not guarantees of future performance and involve certain risks and uncertainties that are difficult to predict, such as the impacts of the COVID-19 pandemic (including the emergence of variant strains), and which may include, but are not limited to, those listed below and the Risk Factors discussed under Item 1A of the 2020 Form 10-K and in any of the Company’s subsequent SEC filings. The Company intends such forward-looking statements to be covered by the safe harbor provisions for forward-looking statements contained in the Private Securities Litigation Reform Act of 1995, and is including this statement for purposes of invoking these safe harbor provisions. Such forward-looking statements may be deemed to include, among other things, statements relating to the Company’s future financial performance, the performance of its loan portfolio, the expected amount of future credit reserves and charge-offs, delinquency trends, growth plans, regulatory developments, securities that the Company may offer from time to time, and management’s long-term performance goals, as well as statements relating to the anticipated effects on financial condition and results of operations from expected developments or events, the Company’s business and growth strategies, including future acquisitions of banks, specialty finance or wealth management businesses, internal growth and plans to form additional de novo banks or branch offices. Actual results could differ materially from those addressed in the forward-looking statements as a result of numerous factors, including the following:

•the severity, magnitude and duration of the COVID-19 pandemic, including the 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 our operations and personnel, commercial activity and demand across our business and our customers’ businesses;

•the disruption of global, national, state and local economies associated with the COVID-19 pandemic, which could affect the Company’s liquidity and capital positions, impair the ability of our borrowers to repay outstanding loans, impair collateral values and further increase our allowance for credit losses;

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•the impact of the COVID-19 pandemic on our financial results, including possible lost revenue and increased expenses (including the cost of capital), as well as possible goodwill impairment charges;

•economic conditions that affect the economy, housing prices, the job market and other factors that may adversely affect the Company’s liquidity and the performance of its loan portfolios, particularly in the markets in which it operates;

•negative effects suffered by us or our customers resulting from changes in U.S. trade policies;

•the extent of defaults and losses on the Company’s loan portfolio, which may require further increases in its allowance for credit losses;

•estimates of fair value of certain of the Company’s assets and liabilities, which could change in value significantly from period to period;

•the financial success and economic viability of the borrowers of our commercial loans;

•commercial real estate market conditions in the Chicago metropolitan area and southern Wisconsin;

•the extent of commercial and consumer delinquencies and declines in real estate values, which may require further increases in the Company’s allowance for credit losses;

•inaccurate assumptions in our analytical and forecasting models used to manage our loan portfolio;

•changes in the level and volatility of interest rates, the capital markets and other market indices (including developments and volatility arising from or related to the COVID-19 pandemic) that may affect, among other things, the Company’s liquidity and the value of its assets and liabilities;

•a prolonged period of near zero interest rates or potentially negative interest rates, either broadly or for some types of instruments, which may affect the Company’s net interest income and net interest margin, and which could materially adversely affect the Company’s profitability;

•competitive pressures in the financial services business which may affect the pricing of the Company’s loan and deposit products as well as its services (including wealth management services), which may result in loss of market share and reduced income from deposits, loans, advisory fees and income from other products;

•failure to identify and complete favorable acquisitions in the future or unexpected difficulties or developments related to the integration of the Company’s recent or future acquisitions;

•unexpected difficulties and losses related to FDIC-assisted acquisitions;

•harm to the Company’s reputation;

•any negative perception of the Company’s financial strength;

•ability of the Company to raise additional capital on acceptable terms when needed;

•disruption in capital markets, which may lower fair values for the Company’s investment portfolio;

•ability of the Company to use technology to provide products and services that will satisfy customer demands and create efficiencies in operations and to manage risks associated therewith;

•failure or breaches of our security systems or infrastructure, or those of third parties;

•security breaches, including denial of service attacks, hacking, social engineering attacks, malware intrusion or data corruption attempts and identity theft;

•adverse effects on our information technology systems resulting from failures, human error or cyberattacks (including ransomware);

•adverse effects of failures by our vendors to provide agreed upon services in the manner and at the cost agreed, particularly our information technology vendors;

•increased costs as a result of protecting our customers from the impact of stolen debit card information;

•accuracy and completeness of information the Company receives about customers and counterparties to make credit decisions;

•ability of the Company to attract and retain senior management experienced in the banking and financial services industries;

•environmental liability risk associated with lending activities;

•the impact of any claims or legal actions to which the Company is subject, including any effect on our reputation;

•losses incurred in connection with repurchases and indemnification payments related to mortgages and increases in reserves associated therewith;

•the loss of customers as a result of technological changes allowing consumers to complete their financial transactions without the use of a bank;

•the soundness of other financial institutions;

•the expenses and delayed returns inherent in opening new branches and de novo banks;

•liabilities, potential customer loss or reputational harm related to closings of existing branches;

•examinations and challenges by tax authorities, and any unanticipated impact of the Tax Act;

•changes in accounting standards, rules and interpretations, and the impact of such changes on the Company’s financial statements;

•the ability of the Company to receive dividends from its subsidiaries;

•uncertainty about the discontinued use of LIBOR and transition to an alternative rate;

•a decrease in the Company’s capital ratios, including as a result of declines in the value of its loan portfolios, or otherwise;

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•legislative or regulatory changes, particularly changes in regulation of financial services companies and/or the products and services offered by financial services companies, including those changes that are in response to the COVID-19 pandemic, including without limitation the CARES Act, the Economic Aid to Hard-Hit Small Businesses, Nonprofits and Venues Act, and the rules and regulations that may be promulgated thereunder;

•a lowering of our credit rating;

•changes in U.S. monetary policy and changes to the Federal Reserve’s balance sheet, including changes in response to the COVID-19 pandemic or otherwise;

•regulatory restrictions upon our ability to market our products to consumers and limitations on our ability to profitably operate our mortgage business;

•increased costs of compliance, heightened regulatory capital requirements and other risks associated with changes in regulation and the regulatory environment;

•the impact of heightened capital requirements;

•increases in the Company’s FDIC insurance premiums, or the collection of special assessments by the FDIC;

•delinquencies or fraud with respect to the Company’s premium finance business;

•credit downgrades among commercial and life insurance providers that could negatively affect the value of collateral securing the Company’s premium finance loans;

•the Company’s ability to comply with covenants under its credit facility; and

•fluctuations in the stock market, which may have an adverse impact on the Company’s wealth management business and brokerage operation.

Therefore, there can be no assurances that future actual results will correspond to these forward-looking statements. The reader is cautioned not to place undue reliance on any forward-looking statement made by the Company. Any such statement speaks only as of the date the statement was made or as of such date that may be referenced within the statement. The Company undertakes no obligation to update any forward-looking statement to reflect the impact of circumstances or events after the date of this report. Persons are advised, however, to consult further disclosures management makes on related subjects in its reports filed with the Securities and Exchange Commission and in its press releases.

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ITEM 3

QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

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. This effort entails providing a reasonable balance between interest rate risk, credit risk, liquidity risk and maintenance of yield. Asset-liability management policies are established and monitored by management in conjunction with the boards of directors of the banks, subject to general oversight by the Risk Management Committee of the Company’s Board of Directors. The policies establish guidelines for acceptable limits on the sensitivity of the market value of assets and liabilities to changes in interest rates.

Interest rate risk arises when the maturity or re-pricing periods and interest rate indices of the interest earning assets, interest bearing liabilities, and derivative financial instruments are different. It is the risk that changes in the level of market interest rates will result in disproportionate changes in the value of, and the net earnings generated from, the Company’s interest earning assets, interest bearing liabilities and derivative financial instruments. The Company continuously monitors not only the organization’s current net interest margin, but also the historical trends of these margins. In addition, management attempts to identify potential adverse changes in net interest income in future years as a result of interest rate fluctuations by performing simulation analysis of various interest rate environments. If a potential adverse change in net interest margin and/or net income is identified, management would take appropriate actions with its asset-liability structure to mitigate these potentially adverse situations.

Since the Company’s primary source of interest bearing liabilities is from customer deposits, the Company’s ability to manage the types and terms of such deposits is somewhat limited by customer preferences and local competition in the market areas in which the banks operate. The rates, terms and interest rate indices of the Company’s interest earning assets result primarily from the Company’s strategy of investing in loans and securities that permit the Company to limit its exposure to interest rate risk, together with credit risk, while at the same time achieving an acceptable interest rate spread.

The Company’s exposure to interest rate risk is reviewed on a regular basis by management and the Risk Management Committees of the boards of directors of the banks and the Company. The objective of the review is to measure the effect on net income and to adjust balance sheet and derivative financial instruments to minimize the inherent risk while at the same time maximizing net interest income.

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 decreases 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 Scenarios at September 30, 2021, June 30, 2021 and September 30, 2020 is as follows:

Static Shock Scenarios	+200 Basis Points		+100 Basis Points		-100 Basis Points
September 30, 2021	24.3	%	11.5	%	(7.8)	%
June 30, 2021	24.6		11.7		(6.9)
September 30, 2020	23.4		10.9		(8.1)

Ramp Scenarios	+200 Basis Points		+100 Basis Points		-100 Basis Points
September 30, 2021	10.8	%	5.4	%	(3.8)	%
June 30, 2021	11.4		5.8		(3.3)
September 30, 2020	10.7		5.2		(3.5)

One method utilized by financial institutions, including the Company, to manage interest rate risk is to enter into derivative financial instruments. Derivative financial instruments include interest rate swaps, interest rate caps, floors and collars, futures,

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forwards, option contracts and other financial instruments with similar characteristics. Additionally, the Company enters into commitments to fund certain mortgage loans (interest rate locks) to be sold into the secondary market and forward commitments for the future delivery of mortgage loans to third party investors. See Note 14 of the Consolidated Financial Statements in Item 1 of this report for further information on the Company’s derivative financial instruments.

During the first nine months of 2020, the Company entered into certain covered call option transactions related to certain securities held by the Company. The Company did not enter into such transactions during the first nine months of 2021. The Company uses these option transactions (rather than entering into other derivative interest rate contracts, such as interest rate floors) to economically hedge positions and compensate for net interest margin compression by increasing the total return associated with the related securities through fees generated from these options. Although the revenue received from these options is recorded as non-interest income rather than interest income, the increased return attributable to the related securities from these options contributes to the Company’s overall profitability. The Company’s exposure to interest rate risk may be impacted by these transactions. To further mitigate this risk, the Company may acquire fixed rate term debt or use financial derivative instruments. There were no covered call options outstanding as of September 30, 2021 and September 30, 2020.

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ITEM 4

CONTROLS AND PROCEDURES

As of the end of the period covered by this report, the Company’s Chief Executive Officer and Chief Financial Officer carried out an evaluation under their supervision, with the participation of other members of management as they deemed appropriate, of the effectiveness of the design and operation of the Company’s disclosure controls and procedures as contemplated by Exchange Act Rule 13a-15. Based upon, and as of the date of that evaluation, the Chief Executive Officer and Chief Financial Officer concluded that the Company’s disclosure controls and procedures are effective, in all material respects, in timely alerting them to material information relating to the Company (and its consolidated subsidiaries) required to be included in the periodic reports the Company is required to file and submit to the SEC under the Exchange Act.

There were no changes in the Company’s internal control over financial reporting (as defined in Exchange Act Rule 13a-15(f)) during the period that have materially affected, or are reasonably likely to materially affect, our internal controls over financial reporting.

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PART II —

Item 1: Legal Proceedings

In accordance with applicable accounting principles, the Company establishes an accrued liability for litigation and threatened litigation actions and proceedings when those actions present loss contingencies, which are both probable and estimable. In actions for which a loss is reasonably possible in future periods, the Company determines whether it can estimate a loss or range of possible loss. To determine whether a possible loss is estimable, the Company reviews and evaluates its material litigation on an ongoing basis, in conjunction with any outside counsel handling the matter, in light of potentially relevant factual and legal developments. This review may include information learned through the discovery process, rulings on substantive or dispositive motions, and settlement discussions.

Wintrust Mortgage Matter

On October 17, 2018, a former Wintrust Mortgage employee filed a lawsuit in the Superior Court of Los Angeles County, California against Wintrust Mortgage alleging violation of California wage payment statutes on behalf of herself and all other hourly, non-exempt employees of Wintrust Mortgage in California. Wintrust Mortgage received service of the complaint on November 4, 2018. Wintrust Mortgage filed its response to the complaint on February 25, 2019. On November 1, 2019, the plaintiff's counsel filed a letter with the California Department of Labor advising that it was initiating an action under California's Private Attorney General Act statute based on the same alleged violations. In November 2019, the parties reached a settlement agreement. The parties executed a settlement agreement and on February 26, 2020, plaintiff moved the court for approval. A hearing on the motion to approve settlement was originally set for June 16, 2020, but the court continued the motion to September 8, 2020. On September 8, 2020, the court requested the parties make certain changes to the settlement agreement that were immaterial to the parties’ settlement terms. The parties revised the settlement agreement consistent with the court's recommendations and submitted the revised settlement agreement to the court for its approval. On January 27, 2021, the court entered its preliminary approval of the settlement. After no class members opted out or objected to the settlement, the court issued its final approval of the settlement on June 17, 2021 and on June 18, 2021, Wintrust Mortgage tendered the settlement amount to the class claims administrator and payments to class members have been completed. The Company had reserved an amount for this settlement that is immaterial to its results of operations or financial condition.

Northbrook Bank Matter

On October 17, 2018, two individual plaintiffs filed suit in the Circuit Court of Cook County, Illinois against Northbrook Bank and Tamer Moumen on behalf of themselves and a class of approximately 42 investors in a hedge fund run by defendant Moumen. Plaintiffs allege that defendant Moumen ran a fraudulent Ponzi scheme and ran those funds through deposit accounts at Northbrook Bank. They allege the bank was negligent in failing to close the deposit accounts and that it intentionally aided and abetted defendant Moumen in the alleged fraud. They contend that Northbrook Bank is liable for losses in excess of $6 million. Northbrook Bank filed its motion to dismiss the complaint on January 15, 2019, which the court granted on March 5, 2019. On April 3, 2019, the plaintiffs filed an amended complaint based on similar allegations. Northbrook Bank again moved to dismiss. The court heard this motion on July 17, 2019 and once again dismissed the complaint without prejudice. Plaintiffs filed a second amended complaint on August 12, 2019. Northbrook moved to dismiss the second amended complaint. On November 6, 2019, the court dismissed the complaint with prejudice. Plaintiffs filed an appeal on December 2, 2019. After this appeal was fully briefed, on September 4, 2020, the Appellate Court for the First District of Illinois remanded the case back to the trial court for lack of appellate jurisdiction. The Appellate Court determined it did not have jurisdiction to hear the appeal because the trial court did not dismiss the suit against defendant Moumen and plaintiffs did not obtain the trial court's consent for immediate appeal of the dismissal order against Northbrook Bank. On October 29, 2020, the plaintiffs cured the jurisdictional issue identified by the Appellate Court by dismissing defendant Moumen. Plaintiffs filed their renewed appeal on November 4, 2020. This matter was fully briefed and on July 30, 2021, the Appellate Court issued an opinion affirming the trial court’s dismissal of the complaint with prejudice. On August 30, 2021, Plaintiffs filed a petition seeking permission to appeal to the Illinois Supreme Court. Northbrook Bank filed its response to Plaintiffs’ petition on September 23, 2021. Plaintiffs’ petition remains pending.

Other Matters

In addition, the Company and its subsidiaries, from time to time, are subject to pending and threatened legal action and proceedings arising in the ordinary course of business.

Based on information currently available and upon consultation with counsel, management believes that the eventual outcome of any pending or threatened legal actions and proceedings described above, including our ordinary course litigation, will not have a material adverse effect on the operations or financial condition of the Company. However, it is possible that the ultimate resolution of these matters, if unfavorable, may be material to the results of operations or financial condition for a particular period.

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Item 1A: Risk Factors

There have been no material changes from the risk factors set forth under Part I, Item 1A “Risk Factors” in the 2020 Form 10-K.

Item 2: Unregistered Sales of Equity Securities and Use of Proceeds

Our previously authorized share repurchase program permitted the repurchase of up to $125 million of our common stock. On October 28, 2021, the Board of Directors of the Company authorized the repurchase of up to $200 million of the Company’s outstanding shares of common stock. This authorization is incremental to the remaining authorization of approximately $23 million under the previous program, which the Board approved in the fourth quarter of 2019. The repurchase authorization does not have an expiration date.

The table below provides information of such repurchases by month in 2021.

Month Period	Total Number of Shares Purchased	Average Price Paid Per Share		Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs	Maximum Dollar Value that May Yet Be Purchased Under the Plans or Programs (in thousands)
July 1, 2021 to July 31, 2021	40,000	$	70.93	40,000	$	30,107
August 1, 2021 to August 31, 2021	94,062	71.25		94,062	23,405
September 1, 2021 to September 30, 2021	—	—		—	23,405
October 1, 2021 to October 31, 2021 (1)	—	—		—	223,405
Total	134,062	$	71.16	134,062	$	223,405

(1)Maximum dollar value that may yet be purchased includes the October 28, 2021 increase in authorization.

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Item 6: Exhibits:

(a)Exhibits

10.1*	Third Amendment, dated as of September 14, 2021, to the Credit Agreement dated as of September 18, 2018, as amended, among Wintrust Financial Corporation, the lenders named therein, and Wells Fargo Bank, National Association, as administrative agent (incorporated by reference to Exhibit 10.1 of the Company’s Current Report on Form 8-K filed with the Securities and Exchange Commission on September 14, 2021).
31.1	Certification of Chief Executive Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
31.2	Certification of Chief Financial Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
32.1	Certification of Chief Executive Officer and Chief Financial Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
101.INS	The XBRL Instance Document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document (1)
101.SCH	XBRL Taxonomy Extension Schema Document
101.CAL	XBRL Taxonomy Extension Calculation Linkbase Document
101.LAB	XBRL Taxonomy Extension Label Linkbase Document
101.PRE	XBRL Taxonomy Extension Presentation Linkbase Document
101.DEF	XBRL Taxonomy Extension Definition Linkbase Document
104	Cover Page Interactive Data File (formatted as Inline XBRL and contained in Exhibit 101)

(1)Includes the following financial information included in the Company’s Quarterly Report on Form 10-Q for the quarter ended September 30, 2021, formatted in iXBRL (Inline eXtensible Business Reporting Language): (i) the Consolidated Statements of Condition, (ii) the Consolidated Statements of Income, (iii) the Consolidated Statements of Comprehensive Income, (iv) the Consolidated Statements of Changes in Shareholders’ Equity, (v) the Consolidated Statements of Cash Flows, and (vi) Notes to Consolidated Financial Statements

*Schedules have been omitted pursuant to Item 601(b)(2) of Regulation S-K. Wintrust agrees to furnish supplementally a copy of any omitted schedules or exhibits to the Securities and Exchange Commission upon request.

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SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

		WINTRUST FINANCIAL CORPORATION (Registrant)
Date:	November 8, 2021	/s/ DAVID L. STOEHR
		David L. Stoehr
		Executive Vice President and Chief Financial Officer (Principal Financial and Accounting Officer and duly authorized officer)

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EX-31.1

Exhibit 31.1

CERTIFICATION

I, Edward J. Wehmer, certify that:

1.I have reviewed this quarterly report on Form 10-Q of Wintrust Financial Corporation;

2.Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3.Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4.The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

a)Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b)Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounted principles;

c)Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures as of the end of the period covered by this report based on such evaluation; and

d)Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5.The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of registrant’s board of directors (or persons performing the equivalent functions):

a)All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

b)Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date: November 8, 2021

/s/ EDWARD J. WEHMER

Name:    Edward J. Wehmer

Title:      Founder and Chief Executive Officer

EX-31.2

Exhibit 31.2

CERTIFICATION

I, David L. Stoehr, certify that:

1.I have reviewed this quarterly report on Form 10-Q of Wintrust Financial Corporation;

2.Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3.Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4.The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

a)Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b)Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounted principles;

c)Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures as of the end of the period covered by this report based on such evaluation; and

d)Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5.The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of registrant’s board of directors (or persons performing the equivalent functions):

a)All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

b)Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date: November 8, 2021

/s/ DAVID L. STOEHR

Name:    David L. Stoehr

Title:      Executive Vice President and
               Chief Financial Officer

EX-32.1

Exhibit 32.1

CERTIFICATIONS

SARBANES-OXLEY ACT SECTION 906

Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, 18 U.S.C. Section 1350, the undersigned Chief Executive Officer and Chief Financial Officer of Wintrust Financial Corporation (“the Company”) certify, on the basis of such officers’ knowledge and belief that:

(1)The Quarterly Report of the Company on Form 10-Q for the period ended September 30, 2021, as filed with the Securities and Exchange Commission on November 8, 2021 (the “Report”) fully complies with the requirements of Section 13(a) or 15(d), as applicable, of the Securities Exchange Act of 1934, as amended; and

(2)The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

/s/ EDWARD J. WEHMER

Name:    Edward J. Wehmer

Title:      Founder and Chief Executive Officer

Date:      November 8, 2021

/s/ DAVID L. STOEHR

Name:    David L. Stoehr

Title:      Executive Vice President and
               Chief Financial Officer

Date:     November 8, 2021

A signed original of this written statement required by Section 906 has been provided to the Company and will be retained by the Company and furnished to the Securities and Exchange Commission upon request. This certification accompanies the Report and shall not be treated as having been filed as part of this Report.

XML

Cover - shares	9 Months Ended
	Sep. 30, 2021	Oct. 31, 2021
Entity Information [Line Items]
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Sep. 30, 2021
Document Transition Report	false
Entity File Number	001-35077
Entity Registrant Name	WINTRUST FINANCIAL CORP
Entity Incorporation, State or Country Code	IL
Entity Tax Identification Number	36-3873352
Entity Address, Address Line One	9700 W. Higgins Road, Suite 800
Entity Address, City or Town	Rosemont
Entity Address, State or Province	IL
Entity Address, Postal Zip Code	60018
City Area Code	847
Local Phone Number	939-9000
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Large Accelerated Filer
Entity Small Business	false
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding (in shares)		57,007,314
Entity Central Index Key	0001015328
Current Fiscal Year End Date	--12-31
Document Fiscal Year Focus	2021
Document Fiscal Period Focus	Q3
Amendment Flag	false
Common Stock, no par value
Entity Information [Line Items]
Title of 12(b) Security	Common Stock, no par value
Trading Symbol	WTFC
Security Exchange Name	NASDAQ
Series D Preferred Stock, no par value
Entity Information [Line Items]
Title of 12(b) Security	Series D Preferred Stock, no par value
Trading Symbol	WTFCM
Security Exchange Name	NASDAQ
Depositary Shares
Entity Information [Line Items]
Title of 12(b) Security	6.875% Fixed-Rate Reset Non-Cumulative Perpetual Series EPreferred Stock, no par value
Trading Symbol	WTFCP
Security Exchange Name	NASDAQ

XML

Consolidated Statements of Condition - USD ($) $ in Thousands	Sep. 30, 2021	Dec. 31, 2020	Sep. 30, 2020
Assets
Cash and due from banks	$ 462,244	$ 322,415	$ 308,639
Federal funds sold and securities purchased under resale agreements	(55)	(59)	(56)
Interest-bearing deposits with banks	(5,232,315)	(4,802,527)	(3,825,823)
Available-for-sale securities, at fair value	(2,373,478)	(3,055,839)	(2,946,459)
Held-to-maturity securities, at amortized cost, net of allowance for credit losses of $83, $59 and $63 at September 30, 2021, December 31, 2020 and September 30, 2020, respectively ($2.7 billion, $593.8 million and $575.9 million fair value at September 30, 2021, December 31, 2020 and September 30, 2020, respectively)	(2,736,722)	(579,138)	(560,267)
Trading account securities	(1,103)	(671)	(1,720)
Equity securities with readily determinable fair value	(88,193)	(90,862)	(54,398)
Federal Home Loan Bank and Federal Reserve Bank stock	(135,408)	(135,588)	(135,568)
Brokerage customer receivables	(26,378)	(17,436)	(16,818)
Mortgage loans held-for-sale, at fair value	(925,312)	(1,272,090)	(959,671)
Loans, net of unearned income	(33,264,043)	(32,079,073)	(32,135,555)
Allowance for loan losses	(296,055)	(379,910)	(388,908)
Premises, software and equipment, net	(748,872)	(768,808)	(774,288)
Lease investments, net	(243,933)	(242,434)	(230,373)
Accrued interest receivable and other assets	(1,166,917)	(1,351,455)	(1,424,728)
Goodwill	(645,792)	(645,707)	(644,644)
Other intangible assets	(30,118)	(36,040)	(38,670)
Total assets	(47,832,271)	(45,080,768)	(43,731,718)
Deposits:
Non-interest-bearing	(13,255,417)	(11,748,455)	(10,409,747)
Interest-bearing	(26,697,141)	(25,344,196)	(25,434,675)
Total deposits	(39,952,558)	(37,092,651)	(35,844,422)
Federal Home Loan Bank advances	(1,241,071)	(1,228,429)	(1,228,422)
Other borrowings	(504,527)	(518,928)	(507,395)
Subordinated notes	(436,811)	(436,506)	(436,385)
Junior subordinated debentures	(253,566)	(253,566)	(253,566)
Trade date securities payable	(1,348)	(200,907)	0
Accrued interest payable and other liabilities	(1,032,073)	(1,233,786)	(1,387,439)
Total liabilities	(43,421,954)	(40,964,773)	(39,657,629)
Shareholders' Equity:
Common stock, no par value; $1.00 stated value; 100,000,000 shares authorized at September 30, 2021, December 31, 2020 and September 30, 2020; 58,793,715 shares issued at September 30, 2021, 58,473,252 shares issued at December 31, 2020 and 58,322,775 shares issued at September 30, 2020	(58,794)	(58,473)	(58,323)
Surplus	(1,674,062)	(1,649,990)	(1,647,049)
Treasury stock, at cost, 1,837,689 shares at September 30, 2021 and 1,703,627 shares at December 31, 2020, and 720,784 shares at September 30, 2020	(109,903)	(100,363)	(44,891)
Retained earnings	(2,373,447)	(2,080,013)	(2,001,949)
Accumulated other comprehensive income (loss)	(1,417)	(15,382)	841
Total shareholders’ equity	(4,410,317)	(4,115,995)	(4,074,089)
Total liabilities and shareholders’ equity	$ (47,832,271)	$ (45,080,768)	$ (43,731,718)
Treasury stock (in shares)	1,837,689	1,703,627	720,784
Loans
Assets
Loans, net of unearned income	$ (33,264,043)	$ (32,079,073)	$ (32,135,555)
Allowance for loan losses	(248,612)	(319,374)	(325,959)
Net loans	(33,015,431)	(31,759,699)	(31,809,596)
Series D - $25 liquidation value; 5,000,000 shares issued and outstanding at September 30, 2021, December 31, 2020 and September 30, 2020
Shareholders' Equity:
Preferred stock, no par value; 20,000,000 shares authorized:	(125,000)	(125,000)	(125,000)
Series E - $25,000 liquidation value; 11,500 shares issued and outstanding at September 30, 2021, December 31, 2020 and September 30, 2020
Shareholders' Equity:
Preferred stock, no par value; 20,000,000 shares authorized:	$ (287,500)	$ (287,500)	$ (287,500)

XML

Consolidated Statements Of Condition (Parenthetical) - USD ($) $ in Thousands	Sep. 30, 2021	Dec. 31, 2020	Sep. 30, 2020
Held-to-maturity securities, allowance for credit loss	$ 83	$ 59	$ 63
Held-to-maturity securities, fair value	$ 2,699,480	$ 593,767	$ 575,947
Preferred stock, authorized (in shares)	20,000,000	20,000,000	20,000,000
Common stock, stated value (usd per share)	$ 1.00	$ 1.00	$ 1.00
Common stock, authorized (in shares)	100,000,000	100,000,000	100,000,000
Common stock, issued (in shares)	58,793,715	58,473,252	58,322,775
Treasury stock (in shares)	1,837,689	1,703,627	720,784
Series D Preferred Stock
Preferred stock, liquidation value per share (usd per share)	$ 25	$ 25	$ 25
Preferred stock, issued (in shares)	5,000,000	5,000,000	5,000,000
Preferred stock, outstanding (in shares)	5,000,000	5,000,000	5,000,000
Series E Preferred Stock
Preferred stock, liquidation value per share (usd per share)	$ 25,000	$ 25,000	$ 25,000
Preferred stock, issued (in shares)	11,500	11,500	11,500
Preferred stock, outstanding (in shares)	11,500	11,500	11,500

XML

Consolidated Statements of Income (Unaudited) - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2021	Sep. 30, 2020	Sep. 30, 2021	Sep. 30, 2020
Interest income
Interest and fees on loans	$ 285,587	$ 280,479	$ 844,388	$ 877,064
Mortgage loans held-for-sale	7,716	5,791	24,935	13,720
Interest-bearing deposits with banks	2,000	1,181	4,352	7,259
Federal funds sold and securities purchased under resale agreements	0	0	0	102
Investment securities	25,189	21,819	68,076	81,391
Trading account securities	3	6	6	26
Federal Home Loan Bank and Federal Reserve Bank stock	1,777	1,774	5,291	5,116
Brokerage customer receivables	185	106	457	361
Total interest income	322,457	311,156	947,505	985,039
Interest expense
Interest on deposits	19,305	39,084	71,547	156,576
Interest on Federal Home Loan Bank advances	4,931	4,947	14,658	13,241
Interest on other borrowings	2,501	3,012	7,678	9,994
Interest on subordinated notes	5,480	5,474	16,469	16,452
Interest on junior subordinated debentures	2,744	2,703	8,172	8,266
Total interest expense	34,961	55,220	118,524	204,529
Net interest income	287,496	255,936	828,981	780,510
Provision for credit losses	(7,916)	25,026	(68,562)	213,040
Net interest income after provision for credit losses	295,412	230,910	897,543	567,470
Non-interest income
Revenue from contracts with customers	53,219	42,797	151,720	124,908
Mortgage banking	55,794	108,544	219,872	259,194
(Losses) gains on investment securities, net	(2,431)	411	8	(3,140)
Fees from covered call options	1,157	0	2,545	2,292
Trading gains (losses), net	58	183	39	(902)
Operating lease income, net	12,807	11,717	39,487	35,486
Other	23,409	13,284	59,438	46,182
Total non-interest income	136,474	170,593	452,353	445,828
Non-interest expense
Salaries and employee benefits	170,912	164,042	524,538	454,960
Software and equipment	22,029	17,251	63,807	47,931
Operating lease equipment depreciation	10,013	9,425	30,733	27,977
Occupancy, net	18,158	15,830	55,841	50,270
Data processing	7,104	5,689	20,072	24,468
Advertising and marketing	13,443	7,880	33,294	26,446
Professional fees	7,052	6,488	21,943	20,896
Amortization of other intangible assets	1,877	2,701	5,923	8,384
FDIC insurance	6,750	6,772	19,713	17,988
OREO expense, net	(1,531)	(168)	(1,013)	(807)
Other	26,337	28,309	74,294	79,715
Total non-interest expense	282,144	264,219	849,145	758,228
Income before taxes	149,742	137,284	500,751	255,070
Income tax expense	40,605	29,969	133,357	63,284
Net income	109,137	107,315	367,394	191,786
Preferred stock dividends	6,991	10,286	20,973	14,386
Net income applicable to common shares	$ 102,146	$ 97,029	$ 346,421	$ 177,400
Net income per common share-Basic (usd per share)	$ 1.79	$ 1.68	$ 6.08	$ 3.08
Net income per common share-Diluted (usd per share)	1.77	1.67	6.00	3.06
Cash dividends declared per common share (usd per share)	$ 0.31	$ 0.28	$ 0.93	$ 0.84
Weighted average common shares outstanding (in shares)	57,000	57,597	56,985	57,595
Dilutive potential common shares (in shares)	753	449	728	469
Average common shares and dilutive common shares (in shares)	57,753	58,046	57,713	58,064
Wealth management
Non-interest income
Revenue from contracts with customers	$ 31,531	$ 24,957	$ 91,530	$ 73,534
Service charges on deposit accounts
Non-interest income
Revenue from contracts with customers	$ 14,149	$ 11,497	$ 39,434	$ 33,182

XML

Consolidated Statements of Comprehensive Income (Unaudited) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2021	Sep. 30, 2020	Sep. 30, 2021	Sep. 30, 2020
Statement of Comprehensive Income [Abstract]
Net income	$ 109,137	$ 107,315	$ 367,394	$ 191,786
Unrealized (losses) gains on available-for-sale securities
Before tax	(14,141)	(14,563)	(68,555)	81,859
Tax effect	3,767	3,881	18,290	(21,816)
Net of tax	(10,374)	(10,682)	(50,265)	60,043
Reclassification of net gains on available-for-sale securities included in net income
Before tax	350	50	1,144	200
Tax effect	(94)	(14)	(307)	(54)
Net of tax	256	36	837	146
Reclassification of amortization of unrealized gains on investment securities transferred to held-to-maturity from available-for-sale
Before tax	54	54	158	178
Tax effect	(14)	(14)	(42)	(47)
Net of tax	40	40	116	131
Net unrealized (losses) gains on available-for-sale securities	(10,670)	(10,758)	(51,218)	59,766
Unrealized gains (losses) on derivative instruments
Before tax	9,004	10,393	51,008	(31,167)
Tax effect	(2,400)	(2,770)	(13,594)	8,325
Net unrealized gains (losses) on derivative instruments	6,604	7,623	37,414	(22,842)
Foreign currency adjustment
Before tax	(5,858)	3,716	(248)	(3,939)
Tax effect	1,208	(825)	87	852
Net foreign currency adjustment	(4,650)	2,891	(161)	(3,087)
Total other comprehensive (loss) income	(8,716)	(244)	(13,965)	33,837
Comprehensive income	$ 100,421	$ 107,071	$ 353,429	$ 225,623

XML

Consolidated Statements of Changes in Shareholders' Equity (Unaudited) - USD ($) shares in Thousands, $ in Thousands	Total	Series D Preferred Stock	Series E Preferred Stock	Preferred stock	Preferred stock Series E Preferred Stock	Common stock	Surplus	Surplus Series E Preferred Stock	Treasury stock	Retained earnings	Accumulated other comprehensive (loss) income	Cumulative effect, period of adoption, adjustment	Cumulative effect, period of adoption, adjustment Retained earnings
Beginning balance at Dec. 31, 2019	$ 3,691,250			$ 125,000		$ 57,951	$ 1,650,278		$ (6,931)	$ 1,899,630	$ (34,678)	$ (26,717)	$ (26,717)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income	191,786									191,786
Other comprehensive loss, net of tax	33,837										33,837
Cash dividends declared on common stock	(48,364)									(48,364)
Dividends on preferred stock	(14,386)									(14,386)
Common stock repurchases under authorized program	(37,116)								(37,116)
Stock-based compensation	(1,023)						(1,023)
Issuance of Series E preferred stock			$ 277,643					$ (9,857)
Issuance of Series E preferred stock (in shares)					287,500
Common stock issued for:
Exercise of stock options and warrants	3,936					105	3,923		(92)
Restricted stock awards	(752)					195	(195)		(752)
Employee stock purchase plan	2,232					52	2,180
Director compensation plan	1,763					20	1,743
Ending balance at Sep. 30, 2020	4,074,089			412,500		58,323	1,647,049		(44,891)	2,001,949	(841)
Common stock issued for:
Dividends on preferred stock (usd per share)		$ 1.23	$ 716.15
Beginning balance at Jun. 30, 2020	3,990,218			412,500		58,294	1,643,864		(44,891)	1,921,048	(597)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income	107,315									107,315
Other comprehensive loss, net of tax	(244)										(244)
Cash dividends declared on common stock	(16,128)									(16,128)
Dividends on preferred stock	(10,286)									(10,286)
Stock-based compensation	1,255						1,255
Common stock issued for:
Exercise of stock options and warrants	497					7	490
Restricted stock awards	0					2	(2)
Employee stock purchase plan	847					20	827
Director compensation plan	615						615
Ending balance at Sep. 30, 2020	4,074,089			412,500		58,323	1,647,049		(44,891)	2,001,949	(841)
Common stock issued for:
Dividends on preferred stock (usd per share)		0.41	716.15
Beginning balance at Dec. 31, 2020	4,115,995			412,500		58,473	1,649,990		(100,363)	2,080,013	15,382
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income	367,394									367,394
Other comprehensive loss, net of tax	(13,965)										(13,965)
Cash dividends declared on common stock	(52,987)									(52,987)
Dividends on preferred stock	(20,973)									(20,973)
Common stock repurchases under authorized program	(9,540)								(9,540)
Stock-based compensation	9,437						9,437
Common stock issued for:
Exercise of stock options and warrants	10,559					246	10,313
Restricted stock awards	0					13	(13)
Employee stock purchase plan	2,548					38	2,510
Director compensation plan	1,849					24	1,825
Ending balance at Sep. 30, 2021	4,410,317			412,500		58,794	1,674,062		(109,903)	2,373,447	1,417
Common stock issued for:
Dividends on preferred stock (usd per share)		1.23	1,289.07
Beginning balance at Jun. 30, 2021	4,339,011			412,500		58,770	1,669,002		(100,363)	2,288,969	10,133
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income	109,137									109,137
Other comprehensive loss, net of tax	(8,716)										(8,716)
Cash dividends declared on common stock	(17,668)									(17,668)
Dividends on preferred stock	(6,991)									(6,991)
Stock-based compensation	3,243						3,243
Common stock issued for:
Exercise of stock options and warrants	318					8	310
Restricted stock awards	0					3	(3)
Employee stock purchase plan	928					13	915
Director compensation plan	595						595
Ending balance at Sep. 30, 2021	$ 4,410,317			$ 412,500		$ 58,794	$ 1,674,062		$ (109,903)	$ 2,373,447	$ 1,417
Common stock issued for:
Dividends on preferred stock (usd per share)		$ 0.41	$ 429.69

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Consolidated Statements Of Changes In Shareholders' Equity (Unaudited) (Parenthetical) - $ / shares	1 Months Ended			3 Months Ended		9 Months Ended
	Jul. 31, 2021	Apr. 30, 2021	Jan. 31, 2021	Sep. 30, 2021	Sep. 30, 2020	Sep. 30, 2021	Sep. 30, 2020
Cash dividends declared on common stock (usd per share)	$ 0.31	$ 0.31	$ 0.31	$ 0.31	$ 0.28	$ 0.93	$ 0.84
Series D Preferred Stock
Dividends on preferred stock (usd per share)				0.41	0.41	1.23	1.23
Series E Preferred Stock
Dividends on preferred stock (usd per share)				$ 429.69	$ 716.15	$ 1,289.07	$ 716.15

XML

Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2021	Sep. 30, 2020
Operating Activities:
Net income	$ 367,394	$ 191,786
Adjustments to reconcile net income to net cash provided by (used for) operating activities
Provision for credit losses	(68,562)	213,040
Depreciation, amortization and accretion, net	75,389	71,295
Stock-based compensation expense (benefit)	9,437	(1,023)
Amortization of premium on securities, net	5,188	8,079
Accretion of discount and deferred fees on loans, net	(68,413)	(60,451)
Mortgage servicing rights fair value changes, net	15,685	49,097
Non-designated derivatives fair value changes, net	(378)	(600)
Originations and purchases of mortgage loans held-for-sale	(5,504,906)	(5,653,486)
Early buy-out exercises of mortgage loans held-for-sale guaranteed by U.S. Government Agencies, net of subsequent paydowns or payoffs	(9,747)	(71,625)
Proceeds from sales of mortgage loans held-for-sale	6,014,689	5,280,587
Bank owned life insurance ("BOLI") income	(4,620)	(1,884)
Increase in trading securities, net	(432)	(652)
Increase in brokerage customer receivables, net	(8,942)	(245)
Gains on mortgage loans sold	(178,927)	(260,622)
(Gains) losses on investment securities, net	(8)	3,140
(Gains) losses on sales of premises and equipment, net, and sale of related deposit liabilities	(3,649)	192
Gains on sales and fair value adjustments of other real estate owned, net	(2,134)	(933)
Decrease (increase) in accrued interest receivable and other assets, net	121,657	(154,912)
Decrease in accrued interest payable and other liabilities, net	(27,720)	(33,935)
Net Cash Provided by (Used for) Operating Activities	731,001	(423,152)
Investing Activities:
Proceeds from maturities and calls of available-for-sale securities	1,101,149	1,005,968
Proceeds from maturities and calls of held-to-maturity securities	177,668	698,305
Proceeds from sales of available-for-sale securities	192,227	502,676
Proceeds from sales of equity securities with readily determinable fair value	9,759	6,530
Proceeds from sales and capital distributions of equity securities without readily determinable fair value	2,467	1,691
Purchases of available-for-sale securities	(682,172)	(1,273,798)
Purchases of held-to-maturity securities	(2,537,242)	(125,220)
Purchases of equity securities with readily determinable fair value	(6,000)	(11,367)
Purchases of equity securities without readily determinable fair value	(7,295)	(3,666)
Purchases of Federal Home Loan Bank and Federal Reserve Bank stock, net	180	(34,829)
Contributions to investments in partnerships, net	(2,757)	(606)
Proceeds from sales of other real estate owned	7,263	6,937
Increase in interest-bearing deposits with banks, net	(428,917)	(1,662,172)
Increase in loans, net	(1,169,636)	(5,174,163)
Purchases of premises and equipment, net	(23,434)	(54,392)
Net Cash Used for Investing Activities	(3,366,740)	(6,118,106)
Financing Activities:
Increase in deposit accounts, net	2,863,778	5,737,721
(Decrease) increase in other borrowings, net	(15,716)	91,823
Increase in Federal Home Loan Bank advances, net	12,629	553,500
Proceeds from the issuance of preferred stock, net	0	277,643
Cash payments to settle contingent consideration liabilities recognized in business combinations	(16,583)	(4,523)
Issuance of common shares resulting from the exercise of stock options, employee stock purchase plan and conversion of common stock warrants	14,956	8,023
Common stock repurchases under authorized program	(9,540)	(37,116)
Common stock repurchases for tax withholdings related to stock-based compensation	0	(844)
Dividends paid	(73,960)	(62,750)
Net Cash Provided by Financing Activities	2,775,564	6,563,477
Net Increase in Cash and Cash Equivalents	139,825	22,219
Cash and Cash Equivalents at Beginning of Period	322,474	286,476
Cash and Cash Equivalents at End of Period	$ 462,299	$ 308,695

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Basis of Presentation

9 Months Ended

Sep. 30, 2021

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Basis of Presentation

Basis of Presentation

The interim consolidated financial statements of Wintrust Financial Corporation and its subsidiaries (collectively, “Wintrust” or the “Company”) presented herein are unaudited, but in the opinion of management, reflect all necessary adjustments of a normal or recurring nature for a fair presentation of results as of the dates and for the periods covered by the interim consolidated financial statements.

The accompanying interim consolidated financial statements are unaudited and do not include information or footnotes necessary for a complete presentation of financial condition, results of operations or cash flows in accordance with U.S. generally accepted accounting principles (“GAAP”). The interim unaudited consolidated financial statements should be read in conjunction with the consolidated financial statements and notes included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2020 (“2020 Form 10-K”). Operating results reported for the period are not necessarily indicative of the results which may be expected for the entire year. Reclassifications of certain prior period amounts have been made to conform to the current period presentation.

The preparation of the financial statements requires management to make estimates, assumptions and judgments that affect the reported amounts of assets and liabilities. Management believes that the estimates made are reasonable; however, changes in estimates may be required if economic or other conditions develop differently from management’s expectations. Certain policies and accounting principles inherently have a greater reliance on the use of estimates, assumptions and judgments and as such have a greater possibility of producing results that could be materially different than originally reported. Management views critical accounting policies to be those which are highly dependent on subjective or complex judgments, estimates and assumptions, and where changes in those estimates and assumptions could have a significant impact on the financial statements. Management currently views the determination of the allowance for credit losses, including the allowance for loan losses, the allowance for unfunded commitment losses and the allowance for held-to-maturity securities losses, estimations of fair value, the valuations required for impairment testing of goodwill, the valuation and accounting for derivative instruments and income taxes as the accounting areas that require the most subjective and complex judgments, and as such could be the most subject to revision as new information becomes available. Descriptions of the Company’s significant accounting policies are included in Note 1 - “Summary of Significant Accounting Policies” of the 2020 Form 10-K.

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Recent Accounting Developments

9 Months Ended

Sep. 30, 2021

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Recent Accounting Developments

Recent Accounting Developments

Legislation and Regulations Issued as a Result of the COVID-19 Pandemic

On March 27, 2020, the President of the United States signed the Coronavirus Aid, Relief, and Economic Security Act (the "CARES Act" or the "Act"), which provides entities with optional temporary relief from certain accounting and financial reporting requirements under U.S. GAAP.

Section 4013 of the CARES Act allows financial institutions to suspend application of certain current troubled debt restructuring ("TDR") accounting guidance under Accounting Standards Codification (“ASC”) 310-40 for loan modifications related to the COVID-19 pandemic made between March 1, 2020 and the earlier of December 31, 2020 or 60 days after the end of the COVID-19 national emergency, provided certain criteria are met. This relief can be applied to loan modifications for borrowers that were not more than 30 days past due as of December 31, 2019 and to loan modifications that defer or delay the payment of principal or interest, or change the interest rate on the loan. On December 27, 2020, the Consolidated Appropriations Act, 2021 (the "CAA"), which combined stimulus relief for the COVID-19 pandemic with an omnibus spending bill for the 2021 fiscal year, was signed by the President of the United States. The CAA included extension of TDR accounting relief provided under the CARES Act to January 1, 2022. The Company chose to apply this relief to eligible loan modifications.

The business tax provisions of the Act include temporary changes to income and non-income based tax laws, including immediate recovery of qualified improvement property costs and acceleration of Alternative Minimum Tax (AMT) credits. These provisions did not have a material impact on the Company's deferred taxes.

In April 2020, federal and state banking regulators issued the Interagency Statement on Loan Modifications and Reporting for Financial Institutions Working with Customers Affected by the Coronavirus to provide separate relief, specifically indicating that if a modification is either short-term (e.g., six months) or mandated by a federal or state government in response to the COVID-19 pandemic, the borrower is not considered to be experiencing financial difficulty and thus does not represent a TDR under ASC 310-40. Additionally, in August 2020, regulators issued the Joint Statement on Additional Loan Accommodations

Related to the COVID-19 pandemic to provide prudent risk management and consumer protection principles for financial institutions to consider while working with borrowers as loans near the end of initial loan accommodation periods applicable during the COVID-19 pandemic. The Company continues to prudently work with borrowers negatively impacted by the COVID-19 pandemic while managing credit risks and recognizing appropriate allowance for credit losses on its loan portfolio.

Reference Rate Reform

In March 2020, the FASB issued ASU No. 2020-04, “Reference Rate Reform (Topic 848),” which provides temporary optional relief for contracts modified as a result of reference rate reform meeting certain modification criteria, generally allowing an entity to account for contract modifications occurring due to reference rate reform as an event that does not require contract remeasurement or reassessment of a previous accounting determination at the modification date. The guidance also includes temporary optional expedients intended to provide relief from various hedge effectiveness requirements for hedging relationships affected by reference rate reform, provided certain criteria are met, and allows a one-time election to sell or transfer to either available-for-sale or trading any held-to-maturity ("HTM") debt securities that refer to an interest rate affected by reference rate reform and were classified as HTM prior to January 1, 2020. Additionally, in January 2021, the FASB issued ASU No. 2021-01, “Reference Rate Reform (Topic 848): Scope,” which provided additional clarification that certain optional expedients and exceptions noted above apply to derivative instruments that use an interest rate for margining, discounting or contract price alignment that is modified as a result of reference rate reform. This guidance was effective upon issuance and can be applied prospectively, with certain exceptions, through December 31, 2022.

In November 2020, federal and state banking regulators issued the “Interagency Policy Statement on Reference Rates for Loans" to reiterate that a specific replacement rate for loans impacted by reference rate reform has not been endorsed and entities may utilize any replacement reference rate determined to be appropriate based on its funding model and customer needs. As discussed in the “Interagency Policy Statement on Reference Rates for Loans," fallback language should be included in lending contracts to provide for use of a robust fallback rate if the initial reference rate is discontinued. Additionally, federal banking regulators issued the "Interagency Statement on LIBOR Transition" acknowledging that the administrator of USD London Interbank Offered Rate (LIBOR) benchmarks has announced it will consult on its intention to cease the publication of the one week and two month USD LIBOR settings immediately following the LIBOR publication on December 31, 2021, and the remaining USD LIBOR settings immediately following the LIBOR publication on June 30, 2023. On March 5, 2021, the administrator of USD LIBOR benchmarks confirmed these dates and will cease publication of USD LIBOR tenors accordingly. As discussed in the "Interagency Statement on LIBOR Transition," regulators encouraged banks to cease entering into new contracts that use USD LIBOR as a reference rate as soon as practicable and in any event by December 31, 2021, in order to facilitate an orderly, safe and sound LIBOR transition. The Company continues to monitor efforts and evaluate the impact of reference rate reform on its consolidated financial statements.

Income Taxes

In December 2019, the FASB issued ASU No. 2019-12, "Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes," to simplify the accounting for income taxes by removing certain exceptions to the general principles of ASC 740, "Income Taxes". The guidance also improved consistent application by clarifying and amending existing guidance from ASC 740. The Company adopted ASU No. 2019-12 as of January 1, 2021. Adoption of this standard did not have a material impact on the Company’s consolidated financial statements.

Investment Securities

In January 2020, the FASB issued ASU No. 2020-01, “Clarifying the Interactions Between Investments-Equity Securities (ASC Topic 321), Investments-Equity Method and Joint Ventures (ASC Topic 323), and Derivatives and Hedging (ASC Topic 815),” which amended ASC 323, Investments-Equity Method & Joint Ventures to clarify that an entity should consider observable transactions that require it to either apply or discontinue using the equity method of accounting for purposes of applying the measurement alternative in accordance with ASC 321, Investments-Equity Securities, immediately before applying or discontinuing the equity method under ASC 323.

The guidance also amended ASC 815, Derivatives & Hedging, to clarify that, when determining the accounting for certain nonderivative forward contracts and purchased options, an entity should not consider how to account for the resulting investments upon eventual settlement or exercise, and that an entity should evaluate the remaining characteristics in accordance with ASC 815 to determine the accounting for those forward contracts and purchased options.

The Company adopted ASU No. 2020-01 as of January 1, 2021 under a prospective approach. Adoption of this standard did not have a material impact on the Company’s consolidated financial statements.

Codification Improvements

In October 2020, the FASB issued ASU No. 2020-08, “Codification Improvements to Subtopic 310-20, Receivables — Nonrefundable Fees and Other Costs,” clarifying that, for each reporting period, an entity should reevaluate whether a callable debt security with multiple call dates is within the scope of ASC 310-20, which was amended to require amortization of any premium to the next call date. The next call date was defined as the first date when a call option at a specified price becomes exercisable. The Company adopted ASU No. 2020-08 as of January 1, 2021 under a prospective approach. Adoption of this standard did not have a material impact on the Company’s consolidated financial statements.

Additionally, the FASB issued ASU No. 2020-10, “Codification Improvements,” in October 2020 to improve the consistency of the Codification by adding or moving disclosure-specific guidance contained in the Other Presentation Matters section to the appropriate Disclosure Section for various Topics. The Company adopted ASU No. 2020-10 as of January 1, 2021 under a retrospective approach. Adoption of this standard did not have a material impact on the Company’s consolidated financial statements.

Financial Disclosures about Acquired and Disposed Businesses

In May 2020, the SEC issued a final rule on “Amendments to Financial Disclosures about Acquired and Disposed Businesses,” which provides for specific disclosure changes, including revising the investment and income significance tests, conforming the significance threshold and tests for a disposed business to those used for an acquired business, permitting abbreviated financial statements for certain acquisitions of a component of an entity, and reducing the maximum number of years for which financial statements are required for acquired businesses from three years to two years, among other amendments. This guidance was effective on January 1, 2021. The Company does not expect this to have a material impact on the Company’s consolidated financial statements.

In August 2021, the FASB issued ASU No. 2021-06, "Presentation of Financial Statements (Topic 206), Financial Services - Depository and Lending (Topic 942), and Financial Services - Investment Companies (Topic 946)" which amends certain SEC paragraphs in the codification in response to SEC final rule over Financial Disclosures about Acquired and Disposed Businesses by amending ASC Topic 946 by providing additional guidance on financial statement requirements related to Regulation S-X Rule 6-11, Financial Statements of Funds Acquired or to be Acquired. This guidance was effective upon issuance on August 9, 2021. Adoption of this standard did not have a material impact on the Company’s consolidated financial statements.

Debt

In August 2020, the FASB issued ASU No. 2020-06, “Debt-Debt with Conversion and Other Options (Subtopic 470-20) and Derivatives and Hedging-Contracts in Entity’s Own Equity (Subtopic 815-40): Accounting for Convertible Instruments and Contracts in an Entity’s Own Equity,” which includes provisions for reducing the number of accounting models used in accounting for convertible debt instruments and convertible preferred stock, amending derivatives and earnings-per-share (EPS) guidance and expanding disclosures for convertible debt instruments and EPS. This guidance is effective for fiscal years beginning after December 15, 2021, including interim periods therein, and is to be applied under either a full or modified retrospective approach. Early adoption is permitted. The Company does not expect this guidance to have a material impact on the Company’s consolidated financial statements.

Statistical Disclosures for Bank and Savings and Loan Registrants

In September 2020, the SEC issued a final rule on the “Update of Statistical Disclosures for Bank and Savings and Loan Registrants,” which adopts rules to update statistical disclosure requirements for banking registrants. The amendments update and expand the disclosures that registrants are required to provide, codify certain Industry Guide 3 disclosure items and eliminate other Guide 3 disclosures that overlap with SEC rules, GAAP or IFRS standards. In addition, Guide 3 is being rescinded and replaced with a new subpart of Regulation S-K. The SEC ruling is applicable to fiscal years beginning after December 15, 2021 and early compliance is permitted. The Company does not expect this guidance to have a material impact on the Company’s consolidated financial statements.

In August 2021, the FASB issued ASU No. 2021-06, "Presentation of Financial Statements (Topic 206), Financial Services - Depository and Lending (Topic 942), and Financial Services - Investment Companies (Topic 946)" which amends certain SEC paragraphs in the codification in response to the SEC final rule on the Update of Statistical Disclosures for Banks and Savings and Loan Registrants by removing the disclosure requirements for various categories of loans contained in ASC

Topic 942. This guidance was effective upon issuance on August 9, 2021. Adoption of this standard did not have a material impact on the Company’s consolidated financial statements.

Issuer’s Accounting for Modifications or Exchanges of Freestanding Equity-Classified Written Call Options

In May 2021, the FASB issued ASU No. 2021-04, “Earnings Per Share (Topic 260), Debt—Modifications and Extinguishments (Subtopic 470-50), Compensation—Stock Compensation (Topic 718), and Derivatives and Hedging—Contracts in Entity’s Own Equity (Subtopic 815-40): Issuer’s Accounting for Certain Modifications or Exchanges of Freestanding Equity-Classified Written Call Options,” which requires an issuer to account for any modification or exchange of the terms or conditions of a freestanding written call option classified as equity, such as warrants, that remains classified as equity as an exchange of the original instrument for a new instrument and provides a framework for measuring and recognizing the effect of the exchange as an adjustment to either equity or expense. This guidance is effective for fiscal years beginning after December 15, 2021, including interim periods therein, and is to be applied prospectively. Early adoption is permitted. The Company does not expect this guidance to have a material impact on the Company’s consolidated financial statements.

Leases - Certain Leases with Variable Lease Payments

In July 2021, the FASB issued ASU No. 2021-05, "Leases (Topic 842): Lessors – Certain Leases with Variable Lease Payments" which amends lessor lease classification requirements to allow leases with variable lease payments that are not dependent on a reference index or rate to be classified and accounted for as an operating lease, provided the lease would have been classified as a sales-type or direct financing lease and the lessor would have otherwise recognized a day-one loss. This guidance is effective for fiscal years beginning after December 15, 2021, including interim periods therein, with early adoption permitted. As the Company has adopted ASC Topic 842, this guidance is to be applied retrospectively to leases that commenced or were modified after adoption or prospectively to leases that will commence or be modified after the application of these amendments. The Company does not expect this guidance to have a material impact on the Company's consolidated financial statements.

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Cash and Cash Equivalents	9 Months Ended
	Sep. 30, 2021
Cash and Cash Equivalents [Abstract]
Cash and Cash Equivalents	Cash and Cash EquivalentsFor purposes of the Consolidated Statements of Cash Flows, the Company considers cash and cash equivalents to include cash on hand, cash items in the process of collection, non-interest bearing amounts due from correspondent banks, federal funds sold and securities purchased under resale agreements with original maturities of three months or less. These items are included within the Company’s Consolidated Statements of Condition as cash and due from banks, and federal funds sold and securities purchased under resale agreements.

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Investment Securities

9 Months Ended

Sep. 30, 2021

Investments, Debt and Equity Securities [Abstract]

Investment Securities

Investment Securities

The following tables are a summary of the investment securities portfolios as of the dates shown:

	September 30, 2021
(Dollars in thousands)	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value
Available-for-sale securities
U.S. Treasury	$	6,000	$	—	$	—	$	6,000
U.S. Government agencies	50,163		3,112		—		53,275
Municipal	170,612		4,202		(214)		174,600
Corporate notes:
Financial issuers	98,848		500		(1,241)		98,107
Other	1,000		11		—		1,011
Mortgage-backed: (1)
Mortgage-backed securities	1,913,139		44,931		(25,434)		1,932,636
Collateralized mortgage obligations	107,657		192		—		107,849
Total available-for-sale securities	$	2,347,419	$	52,948	$	(26,889)	$	2,373,478
Held-to-maturity securities
U.S. Government agencies	$	176,143	$	482	$	(2,878)	$	173,747
Municipal	190,662		10,321		(334)		200,649
Mortgage-backed securities	2,318,309		1,924		(46,102)		2,274,131
Corporate notes	51,691		—		(738)		50,953
Total held-to-maturity securities	$	2,736,805	$	12,727	$	(50,052)	$	2,699,480
Less: Allowance for credit losses	(83)
Held-to-maturity securities, net of allowance for credit losses	$	2,736,722
Equity securities with readily determinable fair value	$	83,909	$	5,678	$	(1,394)	$	88,193

(1)Consisting entirely of residential mortgage-backed securities, none of which are subprime.

	December 31, 2020
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value
(Dollars in thousands)
Available-for-sale securities
U.S. Treasury	$	304,956	$	15	$	—	$	304,971
U.S. Government agencies	80,074		4,439		—		84,513
Municipal	141,244		5,707		(41)		146,910
Corporate notes:
Financial issuers	91,786		1,363		(2,764)		90,385
Other	1,000		20		—		1,020
Mortgage-backed: (1)
Mortgage-backed securities	2,330,332		86,721		(15)		2,417,038
Collateralized mortgage obligations	10,689		313		—		11,002
Total available-for-sale securities	$	2,960,081	$	98,578	$	(2,820)	$	3,055,839
Held-to-maturity securities
U.S. Government agencies	$	177,959	$	2,552	$	—	$	180,511
Municipal	200,707		12,232		(214)		212,725
Mortgage-backed securities	200,531		—		—		200,531
Total held-to-maturity securities	$	579,197	$	14,784	$	(214)	$	593,767
Less: Allowance for credit losses	(59)
Held-to-maturity securities, net of allowance for credit losses	$	579,138
Equity securities with readily determinable fair value	$	87,618	$	3,674	$	(430)	$	90,862

(1)Consisting entirely of residential mortgage-backed securities, none of which are subprime.

	September 30, 2020
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value
(Dollars in thousands)
Available-for-sale securities
U.S. Treasury	$	279,903	$	206	$	(1)	$	280,108
U.S. Government agencies	172,951		5,715		—		178,666
Municipal	150,333		3,996		(134)		154,195
Corporate notes:
Financial issuers	106,764		455		(4,110)		103,109
Other	1,000		26		—		1,026
Mortgage-backed: (1)
Mortgage-backed securities	2,121,423		94,543		(11)		2,215,955
Collateralized mortgage obligations	13,036		365		(1)		13,400
Total available-for-sale securities	$	2,845,410	$	105,306	$	(4,257)	$	2,946,459
Held-to-maturity securities
U.S. Government agencies	$	349,415	$	4,396	$	—	$	353,811
Municipal	$	210,915	11,339		(118)		222,136
Total held-to-maturity securities	$	560,330	$	15,735	$	(118)	$	575,947
Less: Allowance for credit losses	(63)
Held-to-maturity securities, net of allowance for credit losses	$	560,267
Equity securities with readily determinable fair value	$	53,250	$	1,537	$	(389)	$	54,398

(1)Consisting entirely of residential mortgage-backed securities, none of which are subprime.

Equity securities without readily determinable fair values totaled $35.2 million as of September 30, 2021. Equity securities without readily determinable fair values are included as part of accrued interest receivable and other assets in the Company’s Consolidated Statements of Condition. The Company monitors its equity investments without readily determinable fair values

to identify potential transactions that may indicate an observable price change in orderly transactions for the identical or a similar investment of the same issuer, requiring adjustment to its carrying amount. The Company recorded no upward and no downward adjustments related to such observable price changes for the three and nine months ended September 30, 2021. The Company conducts a quarterly assessment of its equity securities without readily determinable fair values to determine whether impairment exists in such securities, considering, among other factors, the nature of the securities, financial condition of the issuer and expected future cash flows. The Company recorded $2.1 million of impairment of equity securities without readily determinable fair values for the three months ended September 30, 2021. For the nine months ended September 30, 2021, the Company recorded $2.2 million of impairment of equity securities without readily determinable fair values.

The following table presents the portion of the Company’s available-for-sale investment securities portfolios that have gross unrealized losses, reflecting the length of time that individual securities have been in a continuous unrealized loss position at September 30, 2021:

	Continuous unrealized losses existing for less than 12 months				Continuous unrealized losses existing for greater than 12 months				Total
(Dollars in thousands)	Fair Value		Unrealized Losses		Fair Value		Unrealized Losses		Fair Value		Unrealized Losses
Available-for-sale securities
U.S. Treasury	$	—	$	—	$	—	$	—	$	—	$	—
U.S. Government agencies	—		—		—		—		—		—
Municipal	54,995		(210)		111		(4)		55,106		(214)
Corporate notes:
Financial issuers	24,778		(223)		45,975		(1,018)		70,753		(1,241)
Other	—		—		—		—		—		—
Mortgage-backed:
Mortgage-backed securities	850,161		(25,434)		—		—		850,161		(25,434)
Collateralized mortgage obligations	—		—		—		—		—		—
Total available-for-sale securities	$	929,934	$	(25,867)	$	46,086	$	(1,022)	$	976,020	$	(26,889)

The Company conducts a regular assessment of its investment securities to determine whether securities are experiencing credit losses. Factors for consideration include the nature of the securities, credit ratings or financial condition of the issuer, the extent of the unrealized loss, expected cash flows, market conditions and the Company’s ability to hold the securities through the anticipated recovery period.

The Company does not consider available-for-sale securities with unrealized losses at September 30, 2021 to be experiencing credit losses and recognized no resulting allowance for credit losses for such individually assessed credit losses. The Company does not intend to sell these investments and it is more likely than not that the Company will not be required to sell these investments before recovery of the amortized cost bases, which may be the maturity dates of the securities. The unrealized losses within each category have occurred as a result of changes in interest rates, market spreads and market conditions subsequent to purchase. Available-for-sale securities with continuous unrealized losses existing for more than twelve months were primarily corporate notes.

See Note 6—Allowance for Credit Losses for further discussion regarding any credit losses associated with held-to-maturity securities at September 30, 2021.

The following table provides information as to the amount of gross gains and losses, adjustments and impairment on investment securities recognized in earnings and proceeds received through the sale or call of investment securities:

	Three months ended September 30,				Nine months ended September 30,
(Dollars in thousands)	2021		2020		2021		2020
Realized gains on investment securities	$	355	$	78	$	1,184	$	725
Realized losses on investment securities	(5)		(28)		(40)		(525)
Net realized gains on investment securities	350		50		1,144		200
Unrealized gains on equity securities with readily determinable fair value	1		471		2,627		2,118
Unrealized losses on equity securities with readily determinable fair value	(634)		(110)		(1,585)		(3,766)
Net unrealized (losses) gains on equity securities with readily determinable fair value	(633)		361		1,042		(1,648)
Upward adjustments of equity securities without readily determinable fair values	—		—		—		393
Downward adjustments of equity securities without readily determinable fair values	—		—		—		—
Impairment of equity securities without readily determinable fair values	(2,148)		—		(2,178)		(2,085)
Adjustment and impairment, net, of equity securities without readily determinable fair values	(2,148)		—		(2,178)		(1,692)
(Losses) gains on investment securities, net	$	(2,431)	$	411	$	8	$	(3,140)
Proceeds from sales of available-for-sale securities(1)	$	189,851	$	—	$	192,227	$	502,676
Proceeds from sales of equity securities with readily determinable fair value	3,500		2,500		9,759		6,530
Proceeds from sales and capital distributions of equity securities without readily determinable fair value	1,330		1,247		2,467		1,691

(1)Includes proceeds from available-for-sale securities sold in accordance with written covered call options sold to a third party.

The amortized cost and fair value of available-for-sale and held-to-maturity investment securities as of September 30, 2021, December 31, 2020 and September 30, 2020, by contractual maturity, are shown in the following table. Contractual maturities may differ from actual maturities as borrowers may have the right to call or repay obligations with or without call or prepayment penalties. Mortgage-backed securities are not included in the maturity categories in the following maturity summary as actual maturities may differ from contractual maturities because the underlying mortgages may be called or prepaid without penalties:

	September 30, 2021				December 31, 2020				September 30, 2020
(Dollars in thousands)	Amortized Cost		Fair Value		Amortized Cost		Fair Value		Amortized Cost		Fair Value
Available-for-sale securities
Due in one year or less	$	45,459	$	45,549	$	343,601	$	343,846	$	338,702	$	338,954
Due in one to five years	92,457		94,134		67,901		70,334		76,843		78,843
Due in five to ten years	121,099		121,650		111,886		112,178		108,688		105,968
Due after ten years	67,608		71,660		95,672		101,441		186,718		193,339
Mortgage-backed	2,020,796		2,040,485		2,341,021		2,428,040		2,134,459		2,229,355
Total available-for-sale securities	$	2,347,419	$	2,373,478	$	2,960,081	$	3,055,839	$	2,845,410	$	2,946,459
Held-to-maturity securities
Due in one year or less	$	5,466	$	5,493	$	7,138	$	7,186	$	6,911	$	6,942
Due in one to five years	75,724		76,173		22,217		23,068		21,392		21,999
Due in five to ten years	150,908		157,282		150,621		159,293		144,468		151,175
Due after ten years	186,398		186,401		198,690		203,689		387,559		395,831
Mortgage-backed	2,318,309		2,274,131		200,531		200,531		—		—
Total held-to-maturity securities	$	2,736,805	$	2,699,480	$	579,197	$	593,767	$	560,330	$	575,947
Less: Allowance for credit losses	(83)				(59)				(63)
Held-to-maturity securities, net of allowance for credit losses	$	2,736,722			$	579,138			$	560,267

Securities having a carrying value of $2.5 billion at September 30, 2021 as well as securities having a carrying value of $2.4 billion and $3.0 billion at December 31, 2020 and September 30, 2020, respectively, were pledged as collateral for public deposits, trust deposits, Federal Home Loan Bank (“FHLB”) advances and available lines of credit, securities sold under repurchase agreements and derivatives. At September 30, 2021, there were no securities of a single issuer, other than U.S. Government-sponsored agency securities, which exceeded 10% of shareholders’ equity.

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Loans

9 Months Ended

Sep. 30, 2021

Loans and Leases Receivable Disclosure [Abstract]

Loans

Loans

The following table shows the Company’s loan portfolio by category as of the dates shown:

	September 30,			December 31,			September 30,
(Dollars in thousands)	2021			2020			2020
Balance:
Commercial	$	11,187,972		$	11,955,967		$	12,276,999
Commercial real estate	8,885,714			8,494,132			8,423,142
Home equity	347,662			425,263			446,274
Residential real estate	1,547,736			1,259,598			1,384,810
Premium finance receivables
Commercial insurance	4,616,977			4,054,489			4,060,144
Life insurance	6,655,453			5,857,436			5,488,832
Consumer and other	22,529			32,188			55,354
Total loans, net of unearned income	$	33,264,043		$	32,079,073		$	32,135,555
Mix:
Commercial	33		%	37		%	39		%
Commercial real estate	27			26			26
Home equity	1			1			1
Residential real estate	5			5			4
Premium finance receivables
Commercial insurance	14			13			13
Life insurance	20			18			17
Consumer and other	0			0			0
Total loans, net of unearned income	100		%	100		%	100		%

The Company’s loan portfolio is generally comprised of loans to consumers and small to medium-sized businesses, which, for the commercial and commercial real estate portfolios, are located primarily within the geographic market areas that the banks serve. Various niche lending businesses, including lease finance and franchise lending, operate on a national level. Additionally, to provide short-term relief due to macroeconomic deterioration from the COVID-19 pandemic to small businesses within such market areas, the Company originated loans through the Paycheck Protection Program ("PPP"), an expansion of guaranteed lending under Section 7(a) of the Small Business Act within the CARES Act. As of September 30, 2021, the Company's commercial portfolio included approximately $1.1 billion of such PPP loans. The premium finance receivables portfolios are made to customers throughout the United States and Canada. The Company strives to maintain a loan portfolio that is diverse in terms of loan type, industry, borrower and geographic concentrations. Such diversification reduces the exposure to economic downturns that may occur in different segments of the economy or in different industries.

Certain premium finance receivables are recorded net of unearned income. The unearned income portions of such premium finance receivables were $124.0 million at September 30, 2021, $113.1 million at December 31, 2020 and $108.5 million at September 30, 2020.

Total loans, excluding PCD loans, include net deferred loan fees and costs and fair value purchase accounting adjustments totaling $13.1 million at September 30, 2021, $(3.2) million at December 31, 2020 and $(42.3) million at September 30, 2020. Net deferred fees as of September 30, 2021 includes $24.8 million of net deferred fees paid by the Small Business Administration ("SBA") for loans originated under the PPP. As PPP loans share similar characteristics (loan terms), and prepayments are considered probable and can reasonably be estimated due to terms of the program, the Company considers estimated future principal prepayments in recognizing such deferred fees for determining a constant effective yield on the portfolio of loans.

It is the policy of the Company to review each prospective credit in order to determine the appropriateness and, when required, the adequacy of security or collateral necessary to obtain when making a loan. The type of collateral, when required, will vary from liquid assets to real estate. The Company seeks to ensure access to collateral, in the event of default, through adherence to state lending laws and the Company’s credit monitoring procedures.

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Allowance for Credit Losses

9 Months Ended

Sep. 30, 2021

Credit Loss [Abstract]

Allowance for Credit Losses

Allowance for Credit Losses

In accordance with ASC 326, the Company is required to measure the allowance for credit losses of financial assets with similar risk characteristics on a collective or pooled basis. In considering the segmentation of financial assets measured at amortized cost into pools, the Company considered various risk characteristics in its analysis. Generally, the segmentation utilized represents the level at which the Company develops and documents its systematic methodology to determine the allowance for credit losses for the financial assets held at amortized cost, specifically the Company's loan portfolio and debt securities classified as held-to-maturity. Below is a summary of the Company's loan portfolio segments and major debt security types:

Commercial loans, including PPP loans: The Company makes commercial loans for many purposes, including working capital lines and leasing arrangements, that are generally renewable annually and supported by business assets, personal guarantees and additional collateral. Underlying collateral includes receivables, inventory, enterprise value and the assets of the business. Commercial business lending is generally considered to involve a slightly higher degree of risk than traditional consumer bank lending. This portfolio includes a range of industries, including manufacturing, restaurants, franchise, professional services, equipment finance and leasing, mortgage warehouse lending and industrial.

The Company also originated loans through the PPP. Administered by the SBA, the PPP provided short-term relief primarily related to the disruption from COVID-19 to companies and non-profits that met the SBA’s definition of an eligible small business. Under the program, the SBA will forgive all or a portion of the loan if, during a certain period, loans are used for qualifying expenses. If all or a portion of the loan is not forgiven, the borrower is responsible for repayment. PPP loans are fully guaranteed by the SBA, including any portion not forgiven. The SBA guarantee existed at the inception of the loan and throughout its life and is not separated from the loan if the loan is subsequently sold or transferred. As it is not considered a freestanding contract, the Company considers the impact of the SBA guarantee when measuring the allowance for credit losses.

Commercial real estate loans, including construction and development, and non-construction: The Company's commercial real estate loans are generally secured by a first mortgage lien and assignment of rents on the underlying property. Since most of the Company's bank branches are located in the Chicago metropolitan area and southern Wisconsin, a significant portion of the Company's commercial real estate loan portfolio is located in this region. As the risks and circumstances of such loans in construction phase vary from that of non-construction commercial real estate loans, the Company assesses the allowance for credit losses separately for these two segments.

Home equity loans: The Company's home equity loans and lines of credit are primarily originated by each of the bank subsidiaries in their local markets where there is a strong understanding of the underlying real estate value. The Company's banks monitor and manage these loans, and conduct an automated review of all home equity loans and lines of credit at least twice per year. The bank’s subsidiaries use this information to manage loans that may be higher risk and to determine whether to obtain additional credit information or updated property valuations. In a limited number of cases, the Company may issue home equity credit together with first mortgage financing, and requests for such financing are evaluated on a combined basis.

Residential real estate loans: The Company's residential real estate portfolio includes one- to four-family fixed and adjustable rate mortgages with repricing terms generally over five years, construction loans to individuals and bridge financing loans for qualifying customers. The Company's residential mortgages relate to properties located principally in the Chicago metropolitan area and southern Wisconsin or vacation homes owned by local residents. Due to interest rate risk considerations, the Company generally sells in the secondary market loans originated with long-term fixed rates, however, certain of these loans may be retained within the banks’ own portfolios where they are non-agency conforming, or where the terms of the loans make them favorable to retain. The Company believes that since this loan portfolio consists primarily of locally originated loans, and since the majority of the borrowers are longer-term customers with lower LTV ratios, the Company faces a relatively low risk of borrower default and delinquency. It is not the Company's current practice to underwrite, and there are no plans to underwrite subprime, Alt A, no or little documentation loans, or option ARM loans.

Premium finance receivables: The Company makes loans to businesses to finance the insurance premiums they pay on their commercial insurance policies. The loans are indirectly originated by working through independent medium and large insurance agents and brokers located throughout the United States and Canada. The insurance premiums financed are primarily for commercial customers’ purchases of liability, property and casualty and other commercial insurance. This lending involves relatively rapid turnover of the loan portfolio and high volume of loan originations. The Company performs ongoing credit and other reviews of the agents and brokers to mitigate against the risk of fraud.

The Company also originates life insurance premium finance receivables. These loans are originated directly with the borrowers with assistance from life insurance carriers, independent insurance agents, financial advisors and legal counsel. The life

insurance policy is the primary form of collateral. In addition, these loans often are secured with a letter of credit, marketable securities or certificates of deposit. In some cases, the Company may make a loan that has a partially unsecured position.

Consumer and other loans: Included in the consumer and other loan category is a wide variety of personal and consumer loans to individuals. The Company originates consumer loans in order to provide a wider range of financial services to their customers. Consumer loans generally have shorter terms and higher interest rates than mortgage loans but generally involve more credit risk than mortgage loans due to the type and nature of the collateral.

U.S. government agency securities: This security type includes debt obligations of certain government-sponsored entities of the U.S. government such as the Federal Home Loan Bank, Federal Agricultural Mortgage Corporation, Federal Farm Credit Banks Funding Corporation and Fannie Mae. Such securities often contain an explicit or implicit guarantee of the U.S. government.

Municipal securities: The Company's municipal securities portfolio include bond issues for various municipal government entities located throughout the United States, including the Chicago metropolitan area and southern Wisconsin, some of which are privately placed and non-rated. Though the risk of loss is typically low, including within the Company, default history exists on municipal securities within the United States.

Mortgage-backed securities: This security type includes debt obligations supported by pools of individual mortgage loans and issued by certain government-sponsored entities of the U.S. government such as Freddie Mac and Fannie Mae. Such securities are considered to contain an implicit guarantee of the U.S. government.

Corporate notes: The Company's corporate notes portfolio includes bond issues for various public companies representing a diversified population of industries. The risk of loss in this portfolio is considered low based on the characteristics of the investments, including the Company’s own past history with similar investments.

In accordance with ASC 326, the Company elected to not measure an allowance for credit losses on accrued interest as such accrued interest is written off in a timely manner when deemed uncollectible. Any such write-off of accrued interest will reverse previously recognized interest income. In addition, the Company elected to not include accrued interest within presentation and disclosures of the carrying amount of financial assets held at amortized cost. This election is applicable to the various disclosures included within the Company's financial statements. Accrued interest related to financial assets held at amortized cost is included within accrued interest receivable and other assets within the Company's Consolidated Statements of Condition and totaled $119.2 million at September 30, 2021, $121.9 million at December 31, 2020, and $116.9 million at September 30, 2020.

The tables below show the aging of the Company’s loan portfolio by the segmentation noted above at September 30, 2021, December 31, 2020 and September 30, 2020:

As of September 30, 2021			90+ days and still accruing		60-89 days past due		30-59 days past due
(In thousands)	Nonaccrual								Current		Total Loans
Loan Balances (includes PCD):
Commercial
Commercial, industrial and other, excluding PPP loans	$	26,468	$	—	$	9,768	$	24,086	$	10,045,662	$	10,105,984
Commercial PPP loans	—		—		—		1,138		1,080,850		1,081,988
Commercial real estate
Construction and development	1,030		—		—		12,631		1,330,054		1,343,715
Non-construction	22,676		—		5,395		67,187		7,446,741		7,541,999
Home equity	3,449		164		340		867		342,842		347,662
Residential real estate	22,633		—		1,540		1,076		1,522,487		1,547,736
Premium finance receivables
Commercial insurance loans	7,300		5,811		10,642		14,614		4,578,610		4,616,977
Life insurance loans	—		—		5,162		7,040		6,643,251		6,655,453
Consumer and other	384		126		16		125		21,878		22,529
Total loans, net of unearned income	$	83,940	$	6,101	$	32,863	$	128,764	$	33,012,375	$	33,264,043

As of December 31, 2020			90+ days and still accruing		60-89 days past due		30-59 days past due
(In thousands)	Nonaccrual								Current		Total Loans
Loan Balances (includes PCD):
Commercial
Commercial, industrial and other, excluding PPP loans	$	21,743	$	307	$	6,900	$	44,345	$	9,166,751	$	9,240,046
Commercial PPP loans	—		—		—		36		2,715,885		2,715,921
Commercial real estate
Construction and development	5,633		—		—		5,344		1,360,825		1,371,802
Non-construction	40,474		—		5,178		26,772		7,049,906		7,122,330
Home equity	6,529		—		47		637		418,050		425,263
Residential real estate	26,071		—		1,635		12,584		1,219,308		1,259,598
Premium finance receivables
Commercial insurance loans	13,264		12,792		6,798		18,809		4,002,826		4,054,489
Life insurance loans	—		—		21,003		30,465		5,805,968		5,857,436
Consumer and other	436		264		24		136		31,328		32,188
Total loans, net of unearned income	$	114,150	$	13,363	$	41,585	$	139,128	$	31,770,847	$	32,079,073

As of September 30, 2020			90+ days and still accruing		60-89 days past due		30-59 days past due
(In thousands)	Nonaccrual								Current		Total Loans
Loan Balances (includes PCD):
Commercial
Commercial, industrial and other, excluding PPP loans	$	42,036	$	—	$	2,168	$	48,271	$	8,805,511	$	8,897,986
Commercial PPP loans	—		—		—		—		3,379,013		3,379,013
Commercial real estate
Construction and development	10,980		—		—		12,150		1,310,019		1,333,149
Non-construction	57,835		—		8,299		41,312		6,982,547		7,089,993
Home equity	6,329		—		70		1,148		438,727		446,274
Residential real estate	22,069		—		814		2,443		1,359,484		1,384,810
Premium finance receivables
Commercial insurance loans	21,080		12,177		7,495		18,839		4,000,553		4,060,144
Life insurance loans	—		—		30,791		61,893		5,396,148		5,488,832
Consumer and other	422		175		273		493		53,991		55,354
Total loans, net of unearned income	$	160,751	$	12,352	$	49,910	$	186,549	$	31,725,993	$	32,135,555

Credit Quality Indicators

Credit quality indicators, specifically the Company's internal risk rating systems, reflect how the Company monitors credit losses and represents factors used by the Company when measuring the allowance for credit losses. The following discusses the Company's credit quality indicators by financial asset.

Loan portfolios

The Company's ability to manage credit risk depends in large part on our ability to properly identify and manage problem loans. To do so, the Company operates a credit risk rating system under which credit management personnel assign a credit risk rating (1 to 10 rating) to each loan at the time of origination and review loans on a regular basis. These credit risk ratings are also an important aspect of the Company's allowance for credit losses measurement methodology. The credit risk rating structure and classifications are shown below:

Pass (risk rating 1 to 5): Based on various factors (liquidity, leverage, etc.), the Company believes asset quality is acceptable and is deemed to not require additional monitoring by the Company.

Special mention (risk rating 6): Assets in this category are currently protected, potentially weak, but not to the point of substandard classification. Loss potential is moderate if corrective action is not taken.

Substandard accrual (risk rating 7): Assets in this category have well defined weaknesses that jeopardize the liquidation of the debt. Loss potential is distinct but with no discernible impairment.

Substandard nonaccrual/doubtful (risk rating 8 and 9): Assets have all the weaknesses in those classified “substandard accrual” with the added characteristic that the weaknesses make collection or liquidation in full, on the basis of current existing facts, conditions, and values, improbable.

Loss/fully charged-off (risk rating 10): Assets in this category are considered fully uncollectible. As such, these assets have no carrying balance on the Company's Consolidated Statements of Condition.

Each loan officer is responsible for monitoring his or her loan portfolio, recommending a credit risk rating for each loan in his or her portfolio and ensuring the credit risk ratings are appropriate. These credit risk ratings are then ratified by the bank’s chief credit officer and/or concurrence credit officer. Credit risk ratings are determined by evaluating a number of factors including: a borrower’s financial strength, cash flow coverage, collateral protection and guarantees.

The Company’s Problem Loan Reporting system includes all loans with credit risk ratings of 6 through 9. This system is designed to provide an on-going detailed tracking mechanism for each problem loan. Once management determines that a loan has deteriorated to a point where it has a credit risk rating of 6 or worse, the Company’s Managed Asset Division performs an overall credit and collateral review. As part of this review, all underlying collateral is identified and the valuation methodology is analyzed and tracked. As a result of this initial review by the Company’s Managed Asset Division, the credit risk rating is reviewed and a portion of the outstanding loan balance may be deemed uncollectible and, as a result, no longer share similar risk characteristics as its related pool. If that is the case, the individual loan is considered collateral dependent and individually assessed for an allowance for credit loss. The Company’s individual assessment utilizes an independent re-appraisal of the collateral (unless such a third-party evaluation is not possible due to the unique nature of the collateral, such as a closely-held business or thinly traded securities). In the case of commercial real estate collateral, an independent third party appraisal is ordered by the Company’s Real Estate Services Group to determine if there has been any change in the underlying collateral value. These independent appraisals are reviewed by the Real Estate Services Group and sometimes by independent third party valuation experts and may be adjusted depending upon market conditions.

Through the credit risk rating process, loans are reviewed to determine if they are performing in accordance with the original contractual terms. If the borrower has failed to comply with the original contractual terms, further action may be required by the Company, including a downgrade in the credit risk rating, movement to non-accrual status or a charge-off. If the Company determines that a loan amount or portion thereof is uncollectible, the loan’s credit risk rating is immediately downgraded to an 8 or 9 and the uncollectible amount is charged-off. Any loan that has a partial charge-off continues to be assigned a credit risk rating of an 8 or 9 for the duration of time that a balance remains outstanding. The Company undertakes a thorough and ongoing analysis to determine if additional impairment and/or charge-offs are appropriate and to begin a workout plan for the credit to minimize actual losses. In determining the appropriate charge-off for collateral-dependent loans, the Company considers the results of appraisals for the associated collateral.

The table below shows the Company’s loan portfolio by credit quality indicator and year of origination at September 30, 2021:

As of September 30, 2021	Year of Origination														Revolving		Total
(In thousands)	2021		2020		2019		2018		2017		Prior		Revolving		to Term		Loans
Loan Balances:
Commercial, industrial and other
Pass	$	1,876,457	$	1,567,410	$	1,005,156	$	711,177	$	481,140	$	620,202	$	3,301,541	$	10,236	$	9,573,319
Special mention	18,468		52,692		67,528		42,470		31,785		22,358		106,454		5,841		347,596
Substandard accrual	17,805		5,246		21,901		33,886		8,712		41,590		28,641		820		158,601
Substandard nonaccrual/doubtful	5,227		3,803		5,008		4,206		2,189		5,503		532		—		26,468
Total commercial, industrial and other	$	1,917,957	$	1,629,151	$	1,099,593	$	791,739	$	523,826	$	689,653	$	3,437,168	$	16,897	$	10,105,984
Commercial PPP
Pass	$	909,139	$	171,213	$	—	$	—	$	—	$	—	$	—	$	—	$	1,080,352
Special mention	—		1,356		—		—		—		—		—		—		1,356
Substandard accrual	—		280		—		—		—		—		—		—		280
Substandard nonaccrual/doubtful	—		—		—		—		—		—		—		—		—
Total commercial PPP	$	909,139	$	172,849	$	—	$	—	$	—	$	—	$	—	$	—	$	1,081,988
Construction and development
Pass	$	214,644	$	403,619	$	326,654	$	131,600	$	79,752	$	88,452	$	24,382	$	2,688	$	1,271,791
Special mention	282		8,475		12,144		17,685		23,435		3,234		—		—		65,255
Substandard accrual	—		—		316		2,558		2,132		478		155		—		5,639
Substandard nonaccrual/doubtful	—		—		—		—		—		1,030		—		—		1,030
Total construction and development	$	214,926	$	412,094	$	339,114	$	151,843	$	105,319	$	93,194	$	24,537	$	2,688	$	1,343,715
Non-construction
Pass	$	1,039,349	$	1,215,988	$	997,258	$	796,708	$	752,951	$	2,053,618	$	185,418	$	4,979	$	7,046,269
Special mention	3,517		10,307		51,203		61,392		44,193		155,150		—		—		325,762
Substandard accrual	—		1,960		33,544		20,725		21,345		69,718		—		—		147,292

Substandard nonaccrual/doubtful	—		—		—		112		169		22,395		—		—		22,676
Total non-construction	$	1,042,866	$	1,228,255	$	1,082,005	$	878,937	$	818,658	$	2,300,881	$	185,418	$	4,979	$	7,541,999
Home equity
Pass	$	8	$	—	$	—	$	—	$	28	$	7,050	$	319,725	$	—	$	326,811
Special mention	—		—		—		—		—		614		5,355		242		6,211
Substandard accrual	—		—		—		184		67		9,341		949		650		11,191
Substandard nonaccrual/doubtful	—		—		—		47		81		2,794		527		—		3,449
Total home equity	$	8	$	—	$	—	$	231	$	176	$	19,799	$	326,556	$	892	$	347,662
Residential real estate
Pass	$	672,993	$	299,739	$	193,715	$	79,703	$	87,361	$	162,230	$	—	$	—	$	1,495,741
Special mention	884		269		459		2,123		1,848		8,331		—		—		13,914
Substandard accrual	1,129		2,234		731		887		2,033		8,434		—		—		15,448
Substandard nonaccrual/doubtful	—		994		1,554		859		4,807		14,419		—		—		22,633
Total residential real estate	$	675,006	$	303,236	$	196,459	$	83,572	$	96,049	$	193,414	$	—	$	—	$	1,547,736
Premium finance receivables - commercial
Pass	$	4,453,036	$	106,802	$	13,179	$	1,429	$	49	$	—	$	—	$	—	$	4,574,495
Special mention	31,671		1,693		9		—		1		—		—		—		33,374
Substandard accrual	1,153		608		2		45		—		—		—		—		1,808
Substandard nonaccrual/doubtful	4,620		2,601		67		12		—		—		—		—		7,300
Total premium finance receivables - commercial	$	4,490,480	$	111,704	$	13,257	$	1,486	$	50	$	—	$	—	$	—	$	4,616,977
Premium finance receivables - life
Pass	$	340,318	$	782,936	$	734,280	$	673,416	$	699,250	$	3,424,672	$	—	$	—	$	6,654,872
Special mention	—		—		—		—		581		—		—		—		581
Substandard accrual	—		—		—		—		—		—		—		—		—
Substandard nonaccrual/doubtful	—		—		—		—		—		—		—		—		—
Total premium finance receivables - life	$	340,318	$	782,936	$	734,280	$	673,416	$	699,831	$	3,424,672	$	—	$	—	$	6,655,453
Consumer and other
Pass	$	2,769	$	1,120	$	1,254	$	1,230	$	84	$	4,595	$	10,647	$	—	$	21,699
Special mention	—		4		17		—		80		82		6		—		189
Substandard accrual	—		3		1		—		—		250		3		—		257
Substandard nonaccrual/doubtful	—		4		—		100		—		280		—		—		384
Total consumer and other	$	2,769	$	1,131	$	1,272	$	1,330	$	164	$	5,207	$	10,656	$	—	$	22,529
Total loans (1)
Pass	$	9,508,713	$	4,548,827	$	3,271,496	$	2,395,263	$	2,100,615	$	6,360,819	$	3,841,713	$	17,903	$	32,045,349
Special mention	54,822		74,796		131,360		123,670		101,923		189,769		111,815		6,083		794,238
Substandard accrual	20,087		10,331		56,495		58,285		34,289		129,811		29,748		1,470		340,516
Substandard nonaccrual/doubtful	9,847		7,402		6,629		5,336		7,246		46,421		1,059		—		83,940
Total loans	$	9,593,469	$	4,641,356	$	3,465,980	$	2,582,554	$	2,244,073	$	6,726,820	$	3,984,335	$	25,456	$	33,264,043

(1)Includes $37.5 million of loans with COVID-19 related modifications that migrated from pass as of March 1, 2020 to special mention or substandard accrual as of September 30, 2021. These loans were further qualitatively evaluated as a part of the measurement of the allowance for credit losses as of September 30, 2021.

Held-to-maturity debt securities

The Company conducts an assessment of its investment securities, including those classified as held-to-maturity, at the time of purchase and on at least an annual basis to ensure such investment securities remain within appropriate levels of risk and continue to perform satisfactorily in fulfilling its obligations. The Company considers, among other factors, the nature of the securities and credit ratings or financial condition of the issuer. If available, the Company obtains a credit rating for issuers from a Nationally Recognized Statistical Rating Organization (“NRSRO”) for consideration. If no such rating is available for an issuer, the Company performs an internal rating based on the scale utilized within the loan portfolio as discussed above. For purposes of the table below, the Company has converted any issuer rating from an NRSRO into the Company’s internal ratings based on Investment Policy and review by the Company’s management.

As of September 30, 2021	Year of Origination												Total
(In thousands)	2021		2020		2019		2018		2017		Prior		Balance
Amortized Cost Balances:
U.S. government agencies
1-4 internal grade	$	97,790	$	25,000	$	—	$	50,000	$	—	$	3,353	$	176,143
5-7 internal grade	—		—		—		—		—		—		—
8-10 internal grade	—		—		—		—		—		—		—
Total U.S. government agencies	$	97,790	$	25,000	$	—	$	50,000	$	—	$	3,353	$	176,143
Municipal
1-4 internal grade	$	1,371	$	—	$	161	$	7,508	$	43,358	$	138,264	$	190,662
5-7 internal grade	—		—		—		—		—		—		—
8-10 internal grade	—		—		—		—		—		—		—
Total municipal	$	1,371	$	—	$	161	$	7,508	$	43,358	$	138,264	$	190,662
Mortgage-backed securities
1-4 internal grade	$	2,318,309	$	—	$	—	$	—	$	—	$	—	$	2,318,309
5-7 internal grade	—		—		—		—		—		—		—
8-10 internal grade	—		—		—		—		—		—		—
Total mortgage-backed securities	$	2,318,309	$	—	$	—	$	—	$	—	$	—	$	2,318,309
Corporate notes
1-4 internal grade	$	—	$	13,578	$	7,419	$	3,285	$	3,237	$	24,172	$	51,691
5-7 internal grade	—		—		—		—		—		—		—
8-10 internal grade	—		—		—		—		—		—		—
Total corporate notes	$	—	$	13,578	$	7,419	$	3,285	$	3,237	$	24,172	$	51,691
Total held-to-maturity securities													$	2,736,805
Less: Allowance for credit losses													(83)
Held-to-maturity securities, net of allowance for credit losses													$	2,736,722

Measurement of Allowance for Credit Losses

The Company's allowance for credit losses consists of the allowance for loan losses, the allowance for unfunded commitment losses and the allowance for held-to-maturity debt security losses. In accordance with ASC 326, the Company measures the allowance for credit losses at the time of origination or purchase of a financial asset, representing an estimate of lifetime expected credit losses on the related asset. When developing its estimate, the Company considers available information relevant to assessing the collectability of cash flows, from both internal and external sources. Historical credit loss experience is one input in the estimation process as well as inputs relevant to current conditions and reasonable and supportable forecasts. In considering past events, the Company considers the relevance, or lack thereof, of historical information due to changes in such things as financial asset underwriting or collection practices, and changes in portfolio mix due to changing business plans and strategies. In considering current conditions and forecasts, the Company considers both the current economic environment and the forecasted direction of the economic environment with emphasis on those factors deemed relevant to or driving changes in expected credit losses. As significant judgment is required, the review of the appropriateness of the allowance for credit losses is performed quarterly by various committees with participation by the Company's executive management.

	September 30,		December 31,		September 30,
(In thousands)	2021		2020		2020
Allowance for loan losses	$	248,612	$	319,374	$	325,959
Allowance for unfunded lending-related commitments losses	47,443		60,536		62,949
Allowance for loan losses and unfunded lending-related commitments losses	296,055		379,910		388,908
Allowance for held-to-maturity securities losses	83		59		63
Allowance for credit losses	$	296,138	$	379,969	$	388,971

The allowance for credit losses is measured on a collective or pooled basis when similar risk characteristics exist, based upon the segmentation discussed above. The Company utilizes modeling methodologies that estimate lifetime credit loss rates on each pool, including methodologies estimating the probability of default and loss given default on specific segments. Historical credit loss history is adjusted for reasonable and supportable forecasts developed by the Company on a quantitative or qualitative basis and incorporates third party economic forecasts. Reasonable and supportable forecasts consider the macroeconomic factors that are most relevant to evaluating and predicting expected credit losses in the Company's financial assets. Currently, the Company utilizes an eight quarter forecast period using a single macroeconomic scenario provided by a

third party and reviewed within the Company's governance structure. For periods beyond the ability to develop reasonable and supportable forecasts, the Company reverts to historical loss rates at an input level, straight-line over a four quarter reversion period. Expected credit losses are measured over the contractual term of the financial asset with consideration of expected prepayments. Expected extensions, renewals or modifications of the financial asset are only considered when either 1) the expected extension, renewal or modification is contained within the existing agreement and is not unconditionally cancelable, or 2) the expected extension, renewal or modification is reasonably expected to result in a TDR. The methodologies discussed above are applied to both current asset balances on the Company's Consolidated Statements of Condition and off-balance sheet commitments (i.e. unfunded lending-related commitments).

Assets that do not share similar risk characteristics with a pool are assessed for the allowance for credit losses on an individual basis. These typically include assets experiencing financial difficulties, including assets rated as substandard nonaccrual and doubtful as well as assets currently classified or expected to be classified as TDRs. If foreclosure is probable or the asset is considered collateral-dependent, expected credit losses are measured based upon the fair value of the underlying collateral adjusted for selling costs, if appropriate. Underlying collateral across the Company's segments consist primarily of real estate, land and construction assets as well as general business assets of the borrower. As of September 30, 2021, excluding loans carried at fair value, substandard nonaccrual loans totaling $47.3 million in carrying balance had no related allowance for credit losses. For certain accruing current and expected TDRs, expected credit losses are measured based upon the present value of future cash flows of the modified asset terms compared to the amortized cost of the asset. Considering accounting relief provided under Section 4013 of the CARES Act, loans identified as being reasonably expected to be modified into TDRs in the future totaled $335,000 as of September 30, 2021.

The Company does not measure an allowance for credit losses on accrued interest receivable balances because these balances are written off in a timely manner as a reduction to interest income when assets are placed on nonaccrual status.

Loan portfolios

A summary of activity in the allowance for credit losses, specifically for the loan portfolio (i.e. allowance for loan losses and allowance for unfunded commitment losses), for the three and nine months ended September 30, 2021 and 2020 is as follows.

Three months ended September 30, 2021			Commercial Real Estate		Home  Equity		Residential Real Estate		Premium Finance Receivables		Consumer and Other		Total Loans
(In thousands)	Commercial
Allowance for credit losses at beginning of period	$	98,507	$	158,522	$	11,207	$	15,684	$	19,899	$	212	$	304,031
Other adjustments			—		—		—		(65)		—		(65)
Charge-offs	(1,352)		(406)		(59)		(10)		(1,390)		(112)		(3,329)
Recoveries	816		373		313		5		1,728		92		3,327
Provision for credit losses	11,811		(18,454)		(522)		593		(1,597)		260		(7,909)
Allowance for credit losses at period end	$	109,782	$	140,035	$	10,939	$	16,272	$	18,575	$	452	$	296,055
Individually measured	$	8,222	$	1,308	$	221	$	940	$	—	$	68	$	10,759
Collectively measured	101,560		138,727		10,718		15,332		18,575		384		285,296
Loans at period end
Individually measured	$	31,001	$	32,091	$	16,486	$	28,966	$	—	$	467	$	109,011
Collectively measured	11,156,971		8,853,623		331,176		1,487,791		11,272,430		22,062		33,124,053
Loans held at fair value	—		—		—		30,979		—		—		30,979

Three months ended September 30, 2020	Commercial		Commercial Real Estate		Home  Equity		Residential Real Estate		Premium Finance Receivables		Consumer and Other		Total Loans
(In thousands)
Allowance for credit losses at beginning of period	$	133,597	$	197,126	$	12,189	$	11,915	$	17,592	$	690	$	373,109
Other adjustments	—		—		—		—		55		—		55
Charge-offs	(5,270)		(1,529)		(138)		(83)		(4,640)		(103)		(11,763)
Recoveries	428		175		111		25		1,720		20		2,479
Provision for credit losses	(15,861)		38,238		(485)		(67)		3,129		74		25,028
Allowance for credit losses at period end	$	112,894	$	234,010	$	11,677	$	11,790	$	17,856	$	681	$	388,908
Individually measured	$	10,642	$	4,741	$	196	$	680	$	—	$	108	$	16,367
Collectively measured	102,252		229,269		11,481		11,110		17,856		573		372,541
Loans at period end
Individually measured	$	49,900	$	79,661	$	22,962	$	30,596	$	—	$	548	$	183,667
Collectively measured	12,227,099		8,343,481		423,312		1,100,699		9,548,976		54,806		31,698,373
Loans held at fair value	—		—		—		253,515		—		—		253,515

Nine months ended September 30, 2021			Commercial Real Estate		Home  Equity		Residential Real Estate		Premium Finance Receivables		Consumer and Other		Total Loans
(In thousands)	Commercial
Allowance for credit losses at beginning of period	$	94,212	$	243,603	$	11,437	$	12,459	$	17,777	$	422	$	379,910
Other adjustments	—		—		—		—		(2)		—		(2)
Charge-offs	(16,370)		(2,798)		(201)		(15)		(6,706)		(330)		(26,420)
Recoveries	2,170		1,087		742		245		6,749		158		11,151
Provision for credit losses	29,770		(101,857)		(1,039)		3,583		757		202		(68,584)
Allowance for credit losses at period end	$	109,782	$	140,035	$	10,939	$	16,272	$	18,575	$	452	$	296,055

Nine months ended September 30, 2020			Commercial Real Estate		Home  Equity		Residential Real Estate		Premium Finance Receivables		Consumer and Other		Total Loans
(In thousands)	Commercial
Allowance for credit losses at beginning of period	$	64,920	$	68,511	$	3,878	$	9,800	$	9,647	$	1,705	$	158,461
Cumulative effect adjustment from the adoption of ASU 2016-13	9,039		32,064		9,061		3,002		(4,959)		(863)		47,344
Other adjustments	—		—		—		—		24		—		24
Charge-offs	(13,109)		(9,323)		(1,378)		(777)		(11,258)		(330)		(36,175)
Recoveries	924		931		451		115		3,663		119		6,203
Provision for credit losses	51,120		141,827		(335)		(350)		20,739		50		213,051
Allowance for credit losses at period end	$	112,894	$	234,010	$	11,677	$	11,790	$	17,856	$	681	$	388,908

At January 1, 2020, the Company adopted ASU 2016-13, which replaced the previous incurred loss methodology for measuring the allowance for credit losses with a lifetime expected loss methodology. At adoption, the allowance for credit losses related to loans and lending agreements increased approximately $47.3 million, including an increase of approximately $33.2 million recorded to the allowance for unfunded commitment losses within accrued interest and other liabilities on the Company's Consolidated Statements of Condition, with an offsetting amount recorded directly to retained earnings, net of taxes. The remaining $14.2 million cumulative effect adjustment was recorded to the allowance for loan losses, presented separately on the Company's Consolidated Statements of Condition. Of the amount recorded to the allowance for loan losses, $11.0 million related to PCD loans with such offsetting amount added directly to the carrying balance of the loans and the remaining $3.2 million not related to PCD loans recorded directly to retained earnings, net of taxes, on the Company's Consolidated Statements of Condition.

For the three and nine month periods ended September 30, 2021, the Company recognized approximately $(7.9) million and $(68.6) million of provision for credit losses, respectively, related to loans and lending agreements. The negative provision for such periods was primarily the result of improvements in the forecasted macroeconomic forecast, specifically the Company's macroeconomic forecasts of key model inputs (most notably, Commercial Real Estate Price Index and Baa corporate credit spreads) as well as improvements in characteristics of the Company's loan portfolios. While uncertainties remain regarding expected economic performance, macroeconomic forecasts as of September 30, 2021 assume that the impact of those uncertainties is less severe compared to that assumed at December 31, 2020. Other key drivers of provision for credit losses in

these portfolios include, but are not limited to, decreases to COVID-19 related loan modifications and positive loan risk rating migration. Net charge-offs in the three and nine month periods ending September 30, 2021, totaled $2,000 and $15.3 million.

Held-to-maturity debt securities

At January 1, 2020, the Company established an allowance for credit losses on its held-to-maturity debt securities totaling approximately $74,000, which is presented as a reduction to the amortized cost basis of held-to-maturity securities on the Company's Consolidated Statements of Condition. Such adjustment was recorded directly to the Company's retained earnings, net of taxes. For the three and nine month periods ended September 30, 2021, the Company recognized approximately $(7,000) and $22,000 of provision for credit losses related to held-to-maturity securities, respectively.

TDRs

At September 30, 2021, the Company had $48.5 million in loans modified in TDRs. The $48.5 million in TDRs represents 254 credits in which economic concessions were granted to certain borrowers to better align the terms of their loans with their current ability to pay.

The Company’s approach to restructuring loans is built on its credit risk rating system, which requires credit management personnel to assign a credit risk rating to each loan. In each case, the loan officer is responsible for recommending a credit risk rating for each loan and ensuring the credit risk ratings are appropriate. These credit risk ratings are then reviewed and approved by the bank’s chief credit officer and/or concurrence credit officer. Credit risk ratings are determined by evaluating a number of factors, including a borrower’s financial strength, cash flow coverage, collateral protection and guarantees. The Company’s credit risk rating scale is one through ten with higher scores indicating higher risk. In the case of loans rated six or worse following modification, the Company’s Managed Assets Division evaluates the loan and the credit risk rating and determines that the loan has been restructured to be reasonably assured of repayment and of performance according to the modified terms and is supported by a current, well-documented credit assessment of the borrower’s financial condition and prospects for repayment under the revised terms.

A modification of a loan with an existing credit risk rating of 6 or worse or a modification of any other credit, which will result in a restructured credit risk rating of 6 or worse must be reviewed for possible TDR classification. In that event, the Company’s Managed Assets Division conducts an overall credit and collateral review. A modification of a loan is considered to be a TDR if both (1) the borrower is experiencing financial difficulty and (2) for economic or legal reasons, the bank grants a concession to a borrower that it would not otherwise consider. The modification of a loan where the credit risk rating is 5 or better after such modification is not considered to be a TDR. Based on the Company’s credit risk rating system, it considers that borrowers whose credit risk rating is 5 or better are not experiencing financial difficulties and therefore, are not considered TDRs.

All credits determined to be a TDR will continue to be classified as a TDR in all subsequent periods, unless the borrower has been in compliance with the loan’s modified terms for a period of six months (including over a calendar year-end) and the current interest rate represents a market rate at the time of restructuring. The Managed Assets Division, in consultation with the respective loan officer, determines whether the modified interest rate represented a current market rate at the time of restructuring. Using knowledge of current market conditions and rates, competitive pricing on recent loan originations, and an assessment of various characteristics of the modified loan (including collateral position and payment history), an appropriate market rate for a new borrower with similar risk is determined. If the modified interest rate meets or exceeds this market rate for a new borrower with similar risk, the modified interest rate represents a market rate at the time of restructuring. Additionally, before removing a loan from TDR classification, a review of the current or previously measured impairment on the loan and any concerns related to future performance by the borrower is conducted. If concerns exist about the future ability of the borrower to meet its obligations under the loans based on a credit review by the Managed Assets Division, the TDR classification is not removed from the loan.

TDRs are individually assessed at the time of the modification and on a quarterly basis to measure an allowance for credit loss. The carrying amount of the loan is compared to the expected payments to be received, discounted at the loan's original rate, or for collateral dependent loans, to the fair value of the collateral. Any shortfall is recorded as a reserve. Each TDR was individually assessed at September 30, 2021 and approximately $2.3 million of reserve was present and appropriately reserved for through the Company’s reserving methodology in the Company’s allowance for credit losses.

TDRs may arise when, due to financial difficulties experienced by the borrower, the Company obtains through physical possession one or more collateral assets in satisfaction of all or part of an existing credit. Once possession is obtained, the Company reclassifies the appropriate portion of the remaining balance of the credit from loans to OREO, which is included within other assets in the Consolidated Statements of Condition. For any residential real estate property collateralizing a

consumer mortgage loan, the Company is considered to possess the related collateral only if legal title is obtained upon completion of foreclosure, or the borrower conveys all interest in the residential real estate property to the Company through completion of a deed in lieu of foreclosure or similar legal agreement. At September 30, 2021, the Company had $2.5 million of foreclosed residential real estate properties included within OREO. Furthermore, the recorded investment in residential mortgage loans secured by residential real estate properties for which foreclosure proceedings are in process totaled $14.3 million and $17.7 million at September 30, 2021 and 2020, respectively.

The tables below present a summary of the post-modification balance of loans restructured during the three and nine months ended September 30, 2021 and 2020, respectively, which represent TDRs:

Three months ended September 30, 2021 (Dollars in thousands)	Total (1)(2)			Extension at Below Market Terms (2)			Reduction of Interest Rate (2)			Modification to  Interest-only Payments (2)			Forgiveness of Debt(2)
	Count	Balance		Count	Balance		Count	Balance		Count	Balance		Count	Balance
Commercial
Commercial, industrial and other	1	$	1	1	$	1	—	$	—	—	$	—	—	$	—
Commercial real estate
Non-construction	—	—		—	—		—	—		—	—		—	—
Residential real estate and other	8	558		7	441		2	202		—	—		—	—
Total loans	9	$	559	8	$	442	2	$	202	—	$	—	—	$	—

Three months ended September 30, 2020 (Dollars in thousands)	Total (1)(2)			Extension at Below Market Terms (2)			Reduction of Interest Rate (2)			Modification to  Interest-only Payments (2)			Forgiveness of Debt(2)
	Count	Balance		Count	Balance		Count	Balance		Count	Balance		Count	Balance
Commercial
Commercial, industrial and other	5	$	1,013	5	$	1,013	—	$	—	—	$	—	—	$	—
Commercial real estate
Non-construction	3	1,045		3	1,045		—	—		1	207		—	—
Residential real estate and other	28	5,538		21	5,281		13	1,829		1	190		—	—
Total loans	36	$	7,596	29	$	7,339	13	$	1,829	2	$	397	—	$	—

(1)TDRs may have more than one modification representing a concession. As such, TDRs during the period may be represented in more than one of the categories noted above.

(2)Balances represent the recorded investment in the loan at the time of the restructuring.

During the three months ended September 30, 2021, nine loans totaling $559,000 were determined to be TDRs, compared to 36 loans totaling $7.6 million during the three months ended September 30, 2020. Of these loans extended at below market terms, the weighted average extension had a term of approximately 105 months during the quarter ended September 30, 2021 compared to 26 months for the quarter ended September 30, 2020. Further, the weighted average decrease in the stated interest rate for loans with a reduction of interest rate during the period was approximately 129 basis points and 116 basis points during the three months ended September 30, 2021 and 2020, respectively. Interest-only payment terms were approximately five months during the three months ended September 30, 2020. Additionally, no principal balances were forgiven during the quarters ended September 30, 2021 and 2020.

Nine months ended September 30, 2021 (Dollars in thousands)	Total (1)(2)			Extension at Below Market Terms (2)			Reduction of Interest Rate (2)			Modification to  Interest-only Payments (2)			Forgiveness of Debt(2)
	Count	Balance		Count	Balance		Count	Balance		Count	Balance		Count	Balance
Commercial
Commercial, industrial and other	6	$	547	6	$	547	—	$	—	—	$	—	—	$	—
Commercial real estate
Non-construction	5	2,944		4	2,401		2	656		1	113		—	—
Residential real estate and other	34	3,393		33	3,276		13	2,108		—	—		—	—
Total loans	45	$	6,884	43	$	6,224	15	$	2,764	1	$	113	—	$	—

Nine months ended September 30, 2020 (Dollars in thousands)	Total (1)(2)			Extension at Below Market Terms (2)			Reduction of Interest Rate (2)			Modification to  Interest-only Payments (2)			Forgiveness of Debt(2)
	Count	Balance		Count	Balance		Count	Balance		Count	Balance		Count	Balance
Commercial
Commercial, industrial and other	17	$	10,046	13	$	5,772	—	$	—	4	$	3,257	1	$	432
Commercial real estate
Non-construction	17	19,180		14	14,556		3	921		7	5,752		—	—
Residential real estate and other	69	11,184		54	10,676		28	4,205		1	190		—	—
Total loans	103	$	40,410	81	$	31,004	31	$	5,126	12	$	9,199	1	$	432

(1)TDRs may have more than one modification representing a concession. As such, TDRs during the period may be represented in more than one of the categories noted above.

(2)Balances represent the recorded investment in the loan at the time of the restructuring.

During the nine months ended September 30, 2021, 45 loans totaling $6.9 million were determined to be TDRs, compared to 103 loans totaling $40.4 million during the nine months ended September 30, 2020. Of these loans extended at below market terms, the weighted average extension had a term of approximately 108 months during the nine months ended September 30, 2021 compared to 14 months for the nine months ended September 30, 2020. Further, the weighted average decrease in the stated interest rate for loans with a reduction of interest rate during the period was approximately 151 basis points and 143 basis points for the year-to-date periods ended September 30, 2021 and 2020, respectively. Interest-only payment terms were approximately six months and 13 months during the nine months ended September 30, 2021 and 2020, respectively. Additionally, no balances were forgiven in the first nine months of 2021 compared to $453,000 of principal balances were forgiven in the same period of 2020.

The following table presents a summary of all loans restructured in TDRs during the twelve months ended September 30, 2021 and 2020, and such loans that were in payment default under the restructured terms during the respective periods below:

(Dollars in thousands)	As of September 30, 2021			Three Months Ended September 30, 2021			Nine months ended September 30, 2021
	Total (1)(3)			Payments in Default  (2)(3)			Payments in Default  (2)(3)
	Count	Balance		Count	Balance		Count	Balance
Commercial
Commercial, industrial and other	10	$	2,863	1	$	199	4	$	1,524
Commercial real estate
Non-construction	6	3,045		3	2,275		3	2,275
Residential real estate and other	50	6,437		2	116		2	116
Total loans	66	$	12,345	6	$	2,590	9	$	3,915

(Dollars in thousands)	As of September 30, 2020			Three Months Ended September 30, 2020			Nine months ended September 30, 2020
	Total (1)(3)			Payments in Default  (2)(3)			Payments in Default  (2)(3)
	Count	Balance		Count	Balance		Count	Balance
Commercial
Commercial, industrial and other	22	$	11,476	7	$	4,607	7	$	4,607
Commercial real estate
Non-construction	18	19,432		13	14,595		13	14,595
Residential real estate and other	112	16,265		11	2,131		14	2,582
Total loans	152	$	47,173	31	$	21,333	34	$	21,784

(1)Total TDRs represent all loans restructured in TDRs during the previous twelve months from the date indicated.

(2)TDRs considered to be in payment default are over 30 days past due subsequent to the restructuring.

(3)Balances represent the recorded investment in the loan at the time of the restructuring.

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Goodwill and Other Intangible Assets

9 Months Ended

Sep. 30, 2021

Goodwill and Intangible Assets Disclosure [Abstract]

Goodwill and Other Intangible Assets

Goodwill and Other Intangible Assets

A summary of the Company’s goodwill assets by reporting unit is presented in the following table:

(In thousands)	December 31, 2020		Goodwill Acquired		Impairment Loss		Goodwill Adjustments		September 30, 2021
Community banking	$	536,396	$	—	$	—	$	—	$	536,396
Specialty finance	39,938		—		—		85		40,023
Wealth management	69,373		—		—		—		69,373
Total	$	645,707	$	—	$	—	$	85	$	645,792

The specialty finance unit’s goodwill increased $85,000 in the first nine months of 2021 as a result of foreign currency translation adjustments related to the Canadian acquisitions.

The Company assesses each reporting unit’s goodwill for impairment on at least an annual basis and considers potential indicators of impairment at each reporting date between annual goodwill impairment tests. At October 1, 2020, the Company utilized a quantitative approach for its annual goodwill impairment tests of the banking, specialty finance and wealth management reporting units and determined that no impairment existed at that time.

At each reporting date between annual goodwill impairment tests, the Company considers potential indicators of impairment. Given the current and prior economic uncertainty and volatility surrounding COVID-19, the Company assessed whether such events and circumstances resulted in it being more likely than not that the fair value of any reporting unit was less than its carrying value. Potential impairment indicators considered include the condition of the economy and banking industry; government intervention and regulatory updates; the impact of recent events to financial performance and cost factors of the reporting units; performance of the Company’s stock and other relevant events.

At the conclusion of this assessment of all reporting units, the Company determined that as of September 30, 2021, it was more likely than not that the fair value of all reporting units exceeded the respective carrying value of such reporting unit.

A summary of intangible assets as of the dates shown and the expected amortization of finite-lived intangible assets as of September 30, 2021 is as follows:

(In thousands)	September 30, 2021		December 31, 2020		September 30, 2020
Community banking segment:
Core deposit intangibles with finite lives:
Gross carrying amount	$	55,206	$	55,206	$	55,206
Accumulated amortization	(36,840)		(32,680)		(31,209)
Net carrying amount	$	18,366	$	22,526	$	23,997
Trademark with indefinite lives:
Carrying amount	5,800		5,800		5,800
Total net carrying amount	$	24,166	$	28,326	$	29,797
Specialty finance segment:
Customer list intangibles with finite lives:
Gross carrying amount	$	1,967	$	1,966	$	1,962
Accumulated amortization	(1,705)		(1,644)		(1,624)
Net carrying amount	$	262	$	322	$	338
Wealth management segment:
Customer list and other intangibles with finite lives:
Gross carrying amount	$	20,430	$	20,430	$	20,430
Accumulated amortization	(14,740)		(13,038)		(11,895)
Net carrying amount	$	5,690	$	7,392	$	8,535
Total intangible assets:
Gross carrying amount	$	83,403	$	83,402	$	83,398
Accumulated amortization	(53,285)		(47,362)		(44,728)
Total intangible assets, net	$	30,118	$	36,040	$	38,670

Estimated amortization
Actual in nine months ended September 30, 2021	$	5,923
Estimated remaining in 2021	1,809
Estimated—2022	6,115
Estimated—2023	4,658
Estimated—2024	3,259
Estimated—2025	2,552

The core deposit intangibles recognized in connection with prior bank acquisitions are amortized over a ten-year period on an accelerated basis. The customer list intangibles recognized in connection with the purchase of life insurance premium finance assets in 2009 are being amortized over an 18-year period on an accelerated basis. The customer list and other intangibles recognized in connection with prior acquisitions within the wealth management segment are being amortized over a period of up to ten years on a straight-line basis. Indefinite-lived intangible assets consist of certain trade and domain names recognized in connection with the acquisition of Veterans First Mortgage in 2018. As indefinite-lived intangible assets are not amortized, the Company assesses impairment on at least an annual basis.

Total amortization expense associated with finite-lived intangibles totaled approximately $5.9 million and $8.4 million for the nine months ended September 30, 2021 and 2020, respectively.

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Mortgage Servicing Rights ("MSRs")

9 Months Ended

Sep. 30, 2021

Disclosures Pertaining to Servicing Assets and Servicing Liabilities [Abstract]

Mortgage Servicing Rights (MSRs)

Mortgage Servicing Rights (“MSRs”)

The following is a summary of the changes in the carrying value of MSRs, accounted for at fair value, for the periods indicated:

	Three Months Ended				Nine Months Ended
	September 30,		September 30,		September 30,		September 30,
(In thousands)	2021		2020		2021		2020
Balance at beginning of the period	$	127,604	$	77,203	$	92,081	$	85,638
Additions from loans sold with servicing retained	15,546		20,936		57,674		50,734
Estimate of changes in fair value due to:
Early buyout options (“EBO”) exercised	(116)		(367)		(518)		(367)
Payoffs and paydowns	(8,594)		(7,863)		(27,302)		(23,557)
Changes in valuation inputs or assumptions	(888)		(3,002)		11,617		(25,541)
Fair value at end of the period	$	133,552	$	86,907	$	133,552	$	86,907
Unpaid principal balance of mortgage loans serviced for others	$	12,720,126	$	10,139,878

The Company recognizes MSR assets upon the sale of residential real estate loans to external third parties when it retains the obligation to service the loans and the servicing fee is more than adequate compensation. The initial recognition of MSR assets from loans sold with servicing retained and subsequent changes in fair value of all MSRs are recognized in mortgage banking revenue. MSRs are subject to changes in value from actual and expected prepayment of the underlying loans.

The estimation of fair value related to MSRs is partly impacted by the Company exercising its EBO on eligible loans previously sold to the Government National Mortgage Association (“GNMA”). Under such optional repurchase program, financial institutions acting as servicers are allowed to buy back from the securitized loan pool individual delinquent mortgage loans meeting certain criteria for which the institution was the original transferor of such loans. At the option of the servicer and without prior authorization from GNMA, the servicer may repurchase such delinquent loans for an amount equal to the remaining principal balance of the loan. At the time of such repurchase, any MSR value related to such loans is derecognized.

Starting in 2019, the Company periodically purchased options for the right to purchase securities not currently held within the banks’ investment portfolios and entered into interest rate swaps in which the Company elected to not designate such derivatives as hedging instruments. These option and swap transactions were designed primarily to economically hedge a portion of the fair value adjustments related to MSRs. During the second quarter of 2020, the Company terminated these interest rate swaps. There were no such options or interest rate swaps outstanding as of September 30, 2021. For more information regarding these hedges, see Note 14 - Derivative Financial Instruments in Item 1 of this report.

The MSR asset fair value is determined by using a discounted cash flow model that incorporates the objective characteristics of the portfolio as well as subjective valuation parameters that purchasers of servicing would apply to such portfolios sold into the secondary market. The subjective factors include loan prepayment speeds, discount rates, servicing costs and other economic factors. The Company uses a third party to assist in the valuation of MSRs.

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Deposits

9 Months Ended

Sep. 30, 2021

Deposits [Abstract]

Deposits

Deposits

The following table is a summary of deposits as of the dates shown: 

(Dollars in thousands)	September 30, 2021			December 31, 2020			September 30, 2020
Balance:
Non-interest-bearing	$	13,255,417		$	11,748,455		$	10,409,747
NOW and interest-bearing demand deposits	3,769,825			3,349,021			3,294,071
Wealth management deposits	4,177,820			4,138,712			4,235,583
Money market	10,757,654			9,348,806			9,423,653
Savings	3,861,296			3,531,029			3,415,073
Time certificates of deposit	4,130,546			4,976,628			5,066,295
Total deposits	$	39,952,558		$	37,092,651		$	35,844,422
Mix:
Non-interest-bearing	33		%	32		%	29		%
NOW and interest-bearing demand deposits	9			9			9
Wealth management deposits	11			11			12
Money market	27			25			26
Savings	10			10			10
Time certificates of deposit	10			13			14
Total deposits	100		%	100		%	100		%

Wealth management deposits represent deposit balances (primarily money market accounts) at the Company’s subsidiary banks from brokerage customers of Wintrust Investments, LLC (“Wintrust Investments”), Chicago Deferred Exchange Company (“CDEC”), trust and asset management customers of the Company and brokerage customers from unaffiliated companies.

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FHLB Advances, Other Borrowings and Subordinated Notes

9 Months Ended

Sep. 30, 2021

Debt Disclosure [Abstract]

FHLB Advances, Other Borrowings and Subordinated Notes

FHLB Advances, Other Borrowings and Subordinated Notes

The following table is a summary of FHLB advances, other borrowings and subordinated notes as of the dates shown:

(In thousands)	September 30, 2021		December 31, 2020		September 30, 2020
FHLB advances	$	1,241,071	$	1,228,429	$	1,228,422
Other borrowings:
Notes payable	85,668		101,710		107,056
Short-term borrowings	14,051		11,366		7,983
Other	63,770		65,108		65,548
Secured borrowings	341,038		340,744		326,808
Total other borrowings	504,527		518,928		507,395
Subordinated notes	436,811		436,506		436,385
Total FHLB advances, other borrowings and subordinated notes	$	2,182,409	$	2,183,863	$	2,172,202

FHLB Advances

FHLB advances consist of obligations of the banks and are collateralized by qualifying commercial and residential real estate and home equity loans and certain securities. FHLB advances are stated at par value of the debt adjusted for unamortized prepayment fees paid at the time of prior restructurings of FHLB advances, unamortized fair value adjustments recorded in connection with advances acquired through acquisitions and debt issuance costs.

Notes Payable

On September 18, 2018, the Company established a $150.0 million term facility (“Term Facility”), which is part of a $200.0 million loan agreement (“Credit Agreement”) with unaffiliated banks. The Credit Agreement consists of the Term Facility with

an original outstanding balance of $150.0 million and a $50.0 million revolving credit facility (“Revolving Credit Facility”). At September 30, 2021, the Company had a notes payable balance of $85.7 million under the Term Facility. The Term Facility is stated at par of the current outstanding balance of the debt adjusted for unamortized costs paid by the Company in relation to the debt issuance. The Company was contractually required to borrow the entire amount of the Term Facility on September 18, 2018 and all such borrowings must be repaid by September 18, 2023. Beginning December 31, 2018, the Company is required to make quarterly payments of principal plus interest on the Term Facility. At September 30, 2021, the Company had no outstanding balance under the Revolving Credit Facility. Unamortized costs paid by the Company in relation to the issuance of the Revolving Credit Facility are classified in other assets on the Consolidated Statements of Condition.

An amendment to the Credit Agreement was executed on and effective as of September 15, 2020. The amendment provided for, among other things, extension of the maturity date under the Revolving Credit Facility to September 14, 2021, revision of certain financial covenants; and the addition of a mechanism to replace LIBOR with an alternate benchmark rate. An amendment to the Credit Agreement was executed on and effective as of September 14, 2021. The amendment provided for, among other things, extension of the maturity date under the Revolving Credit Facility to September 13, 2022.

Borrowings under the amended Credit Agreement that are considered “Base Rate Loans” bear interest at a rate equal to the sum of (1) 60 basis points (in the case of a borrowing under the Revolving Credit Facility) or 75 basis points (in the case of a borrowing under the Term Facility) plus (2) the highest of (a) the federal funds rate plus 50 basis points, (b) the lender's prime rate, or (c) the Eurodollar Rate (as defined below) that would be applicable for an interest period of one month plus 100 basis points. Borrowings under the agreement that are considered “Eurodollar Rate Loans” bear interest at a rate equal to the sum of (1) 135 basis points (in the case of a borrowing under the Revolving Credit Facility) or 125 basis points (in the case of a borrowing under the Term Facility) plus (2) the LIBOR rate for the applicable period, as adjusted for statutory reserve requirements for eurocurrency liabilities (the “Eurodollar Rate”). A commitment fee is payable quarterly equal to 0.30% of the actual daily amount by which the lenders’ commitment under the Revolving Credit Facility exceeded the amount outstanding under such facility.

Borrowings under the amended Credit Agreement are secured by pledges of and first priority perfected security interests in the Company's equity interest in its bank subsidiaries and contain several restrictive covenants, including the maintenance of various capital adequacy levels, asset quality and profitability ratios, and certain restrictions on dividends and other indebtedness. At September 30, 2021, the Company was in compliance with all such covenants. The Revolving Credit Facility and the Term Facility are available to be utilized, as needed, to provide capital to fund continued growth at the Company’s banks and to serve as an interim source of funds for acquisitions, common stock repurchases or other general corporate purposes.

Short-term Borrowings

Short-term borrowings include securities sold under repurchase agreements and federal funds purchased. These borrowings totaled $14.1 million at September 30, 2021 compared to $11.4 million at December 31, 2020 and $8.0 million at September 30, 2020. At September 30, 2021, December 31, 2020 and September 30, 2020, securities sold under repurchase agreements represent $14.1 million, $11.4 million and $8.0 million, respectively, of customer sweep accounts in connection with master repurchase agreements at the banks. The Company records securities sold under repurchase agreements at their gross value and does not offset positions on the Consolidated Statements of Condition. As of September 30, 2021, the Company had pledged securities related to its customer balances in sweep accounts of $26.1 million. Securities pledged for customer balances in sweep accounts and short-term borrowings from brokers are maintained under the Company’s control and consist of mortgage-backed securities, U.S. Government agencies and collateralized mortgage obligations. These securities are included in the available-for-sale portfolio as reflected on the Company’s Consolidated Statements of Condition.

The following is a summary of these securities pledged as of September 30, 2021 disaggregated by investment category and maturity of the related customer sweep account, and reconciled to the outstanding balance of securities sold under repurchase agreements:

(In thousands)	Overnight Sweep Collateral
Available-for-sale securities pledged
U.S. Government agencies	$	10,773
Mortgage-backed securities	14,941
Collateralized mortgage obligations	344
Total collateral pledged	26,058
Excess collateral	12,007
Securities sold under repurchase agreements	$	14,051

Other Borrowings

Other borrowings at September 30, 2021 represent a fixed-rate promissory note issued by the Company in June 2017 and amended in March 2020 (“Fixed-Rate Promissory Note”) related to and secured by three office buildings owned by the Company. At September 30, 2021, the Fixed-Rate Promissory Note had a balance of $63.8 million compared to $65.1 million at December 31, 2020 and $65.5 million at September 30, 2020. Under the Fixed-Rate Promissory Note, during the three months ended March 31, 2020, the Company made monthly principal payments and paid interest at a fixed rate of 3.36%. An amendment to the Fixed-Rate Promissory Note was executed on and effective as of March 31, 2020. The amendment increased the principal amount to $66.4 million, reduced the interest rate to 3.00% and extended the maturity date to March 31, 2025. The Fixed-Rate Promissory Note contains several restrictive covenants, including the maintenance of various capital adequacy levels, asset quality and profitability ratios, and certain restrictions on dividends and indebtedness. At September 30, 2021, the Company was in compliance with all such covenants.

Secured Borrowings

Secured borrowings at September 30, 2021 primarily represents transactions to sell an undivided co-ownership interest in all receivables owed to the Company's subsidiary, First Insurance Funding of Canada (“FIFC Canada”). In December 2014, FIFC Canada sold such interest to an unrelated third party in exchange for a cash payment of approximately C$150 million pursuant to a receivables purchase agreement (“Receivables Purchase Agreement”). The Receivables Purchase Agreement was amended in December 2015, effectively extending the maturity date from December 15, 2015 to December 15, 2017. Additionally, at that time, the unrelated third party paid an additional C$10 million, which increased the total payments to C$160 million. The Receivables Purchase Agreement was again amended in December 2017, effectively extending the maturity date from December 15, 2017 to December 16, 2019. Additionally, in December 2017, the unrelated third party paid an additional C$10 million, which increased the total payments to C$170 million. In June 2018, the unrelated third party paid an additional C$20 million, which increased the total payments to C$190 million. The Receivables Purchase Agreement was again amended in February 2019, effectively extending the maturity date from December 16, 2019 to December 15, 2020. Additionally, in February 2019, the unrelated third party paid an additional C$20 million, which increased the total payments to C$210 million. In May 2019, the unrelated third party paid an additional C$70 million, which increased the total payments to C$280 million. In January 2020, the unrelated third party paid an additional C$40 million, which increased the total payments to C$320 million, and the Receivables Purchase Agreement was amended to effectively extend the maturity date from December 15, 2020 to December 15, 2021. In May 2020, the unrelated third party paid an additional C$100 million, which increased the total payments to C$420 million. In January 2021, the Receivables Purchase Agreement was amended to effectively extend the maturity date from December 15, 2021 to December 15, 2022. These transactions were not considered sales of receivables and, as such, related proceeds received are reflected on the Company’s Consolidated Statements of Condition as a secured borrowing owed to the unrelated third party, net of unamortized debt issuance costs, and translated to the Company’s reporting currency as of the respective date. At September 30, 2021, the translated balance of the secured borrowing totaled $331.0 million compared to $329.9 million at December 31, 2020 and $315.1 million at September 30, 2020. Additionally, the interest rate under the Receivables Purchase Agreement at September 30, 2021 was 1.0694%. The remaining $10.0 million within secured borrowings at September 30, 2021 represents other sold interests in certain loans by the Company that were not considered sales and, as such, related proceeds received are reflected on the Company’s Consolidated Statements of Condition as a secured borrowing owed to the various unrelated third parties.

Subordinated Notes

At September 30, 2021, the Company had outstanding subordinated notes totaling $436.8 million compared to $436.5 million and $436.4 million outstanding at December 31, 2020 and September 30, 2020, respectively. During the second quarter of 2019, the Company issued $300.0 million of subordinated notes, receiving $296.7 million in net proceeds. The subordinated notes have a stated interest rate of 4.85% and mature in June 2029. In 2014, the Company issued $140.0 million of subordinated notes receiving $139.1 million in net proceeds. The subordinated notes have a stated interest rate of 5.00% and mature in June 2024. Subordinated notes are stated at par adjusted for unamortized issuance costs paid related to such debt.

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Junior Subordinated Debentures

9 Months Ended

Sep. 30, 2021

Junior Subordinated Debenture Owed to Unconsolidated Subsidiary Trust [Abstract]

Junior Subordinated Debentures

Junior Subordinated Debentures

As of September 30, 2021, the Company owned 100% of the common securities of eleven trusts, Wintrust Capital Trust III, Wintrust Statutory Trust IV, Wintrust Statutory Trust V, Wintrust Capital Trust VII, Wintrust Capital Trust VIII, Wintrust Capital Trust IX, Northview Capital Trust I, Town Bankshares Capital Trust I, First Northwest Capital Trust I, Suburban Illinois Capital Trust II, and Community Financial Shares Statutory Trust II (the “Trusts”) set up to provide long-term financing. The Northview, Town, First Northwest, Suburban, and Community Financial Shares capital trusts were acquired as part of the acquisitions of Northview Financial Corporation, Town Bankshares, Ltd., First Northwest Bancorp, Inc., Suburban Illinois Bancorp, Inc. and Community Financial Shares, Inc., respectively. The Trusts were formed for purposes of issuing trust preferred securities to third-party investors and investing the proceeds from the issuance of the trust preferred securities and common securities solely in junior subordinated debentures issued by the Company (or assumed by the Company in connection with an acquisition), with the same maturities and interest rates as the trust preferred securities. The junior subordinated debentures are the sole assets of the Trusts. In each Trust, the common securities represent approximately 3% of the junior subordinated debentures and the trust preferred securities represent approximately 97% of the junior subordinated debentures.

The Trusts are reported in the Company’s consolidated financial statements as unconsolidated subsidiaries. Accordingly, in the Consolidated Statements of Condition, the junior subordinated debentures issued by the Company to the Trusts are reported as liabilities and the common securities of the Trusts, all of which are owned by the Company, are included in investment securities.

The following table provides a summary of the Company’s junior subordinated debentures as of September 30, 2021. The junior subordinated debentures represent the par value of the obligations owed to the Trusts.

(Dollars in thousands)	Common Securities		Trust  Preferred Securities		Junior Subordinated Debentures		Rate Structure	Contractual Rate at 9/30/2021		Issue Date	Maturity Date	Earliest Redemption Date
Wintrust Capital Trust III	$	774	$	25,000	$	25,774	L+3.25	3.38	%	04/2003	04/2033	04/2008
Wintrust Statutory Trust IV	619		20,000		20,619		L+2.80	2.93	%	12/2003	12/2033	12/2008
Wintrust Statutory Trust V	1,238		40,000		41,238		L+2.60	2.73	%	05/2004	05/2034	06/2009
Wintrust Capital Trust VII	1,550		50,000		51,550		L+1.95	2.07	%	12/2004	03/2035	03/2010
Wintrust Capital Trust VIII	1,238		25,000		26,238		L+1.45	1.58	%	08/2005	09/2035	09/2010
Wintrust Capital Trust IX	1,547		50,000		51,547		L+1.63	1.75	%	09/2006	09/2036	09/2011
Northview Capital Trust I	186		6,000		6,186		L+3.00	3.13	%	08/2003	11/2033	08/2008
Town Bankshares Capital Trust I	186		6,000		6,186		L+3.00	3.13	%	08/2003	11/2033	08/2008
First Northwest Capital Trust I	155		5,000		5,155		L+3.00	3.13	%	05/2004	05/2034	05/2009
Suburban Illinois Capital Trust II	464		15,000		15,464		L+1.75	1.87	%	12/2006	12/2036	12/2011
Community Financial Shares Statutory Trust II	109		3,500		3,609		L+1.62	1.74	%	06/2007	09/2037	06/2012
Total					$	253,566		2.32	%

The junior subordinated debentures totaled $253.6 million at September 30, 2021, December 31, 2020 and September 30, 2020.

The interest rates on the variable rate junior subordinated debentures are based on the three-month LIBOR rate and reset on a quarterly basis. At September 30, 2021, the weighted average contractual interest rate on the junior subordinated debentures was 2.32%. The Company entered into interest rate swaps with an aggregate notional value of $210.0 million to hedge the variable cash flows on certain junior subordinated debentures. The hedge-adjusted contractual interest rate on the junior subordinated debentures as of September 30, 2021, was 3.96%. Distributions on the common and preferred securities issued by the Trusts are payable quarterly at a rate per annum equal to the interest rates being earned by the Trusts on the junior subordinated debentures. Interest expense on the junior subordinated debentures is deductible for income tax purposes.

The Company has guaranteed the payment of distributions and payments upon liquidation or redemption of the trust preferred securities, in each case to the extent of funds held by the Trusts. The Company and the Trusts believe that, taken together, the obligations of the Company under the guarantees, the junior subordinated debentures, and other related agreements provide, in the aggregate, a full, irrevocable and unconditional guarantee, on a subordinated basis, of all of the obligations of the Trusts under the trust preferred securities. Subject to certain limitations, the Company has the right to defer the payment of interest on the junior subordinated debentures at any time, or from time to time, for a period not to exceed 20 consecutive quarters. The trust preferred securities are subject to mandatory redemption, in whole or in part, upon repayment of the junior subordinated debentures at maturity or their earlier redemption. The junior subordinated debentures are redeemable in whole or in part prior to maturity at any time after the earliest redemption dates shown in the table, and earlier at the discretion of the Company if certain conditions are met, and, in any event, only after the Company has obtained Federal Reserve Bank (“FRB”) approval, if then required under applicable guidelines or regulations.

At September 30, 2021, the Company included $245.5 million of the junior subordinated debentures, net of common securities, in Tier 2 regulatory capital.

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Revenue from Contracts with Customers

9 Months Ended

Sep. 30, 2021

Revenue from Contract with Customer [Abstract]

Revenue from Contracts with Customers

Revenue from Contracts with Customers

Disaggregation of Revenue

The following table presents revenue from contracts with customers, disaggregated by the revenue source:

(Dollars in thousands)		Three Months Ended				Nine Months Ended
Revenue from contracts with customers	Location in income statement	September 30, 2021		September 30, 2020		September 30, 2021		September 30, 2020
Brokerage and insurance product commissions	Wealth management	$	5,230	$	4,563	$	15,418	$	13,991
Trust	Wealth management	5,369		4,179		15,765		13,718
Asset management	Wealth management	20,932		16,215		60,347		45,825
Total wealth management		31,531		24,957		91,530		73,534
Mortgage broker fees	Mortgage banking	270		85		460		312
Service charges on deposit accounts	Service charges on deposit accounts	14,149		11,497		39,434		33,182
Administrative services	Other non-interest income	1,359		1,077		3,843		3,122
Card related fees	Other non-interest income	2,513		2,021		6,474		5,506
Other deposit related fees	Other non-interest income	3,397		3,160		9,979		9,252
Total revenue from contracts with customers		$	53,219	$	42,797	$	151,720	$	124,908

Wealth Management Revenue

Wealth management revenue is comprised of brokerage and insurance product commissions, managed money fees and trust and asset management revenue of the Company's four wealth management subsidiaries: Wintrust Investments, Great Lakes Advisors, LLC ("GLA"), The Chicago Trust Company, N.A. ("CTC") and CDEC. All wealth management revenue is recognized in the wealth management segment.

Brokerage and insurance product commissions consists primarily of commissions earned from trade execution services on behalf of customers and from selling mutual funds, insurance and other investment products to customers. For trade execution services, the Company recognizes commissions and receives payment from the brokerage customers at the point of transaction execution. Commissions received from the investment or insurance product providers are recognized at the point of sale of the product. The Company also receives trail and other commissions from providers for certain plans. These are generally based on qualifying account values and are recognized once the performance obligation, specific to each provider, is satisfied on a monthly, quarterly or annual basis.

Trust revenue is earned primarily from trust and custody services that are generally performed over time as well as fees earned on funds held during the facilitation of tax-deferred like-kind exchange transactions. Revenue is determined periodically based on a schedule of fees applied to the value of each customer account using a time-elapsed method to measure progress toward complete satisfaction of the performance obligation. Fees are typically billed on a calendar month or quarter basis in advance or in arrears depending upon the contract. Upfront fees received related to the facilitation of tax-deferred like-kind exchange

transactions are deferred until the transaction is completed. Additional fees earned for certain extraordinary services performed on behalf of the customers are recognized when the service has been performed.

Asset management revenue is earned from money management and advisory services that are performed over time. Revenue is based primarily on the market value of assets under management or administration using a time-elapsed method to measure progress toward complete satisfaction of the performance obligation. Fees are typically billed on a calendar month or quarter basis in advance or in arrears depending upon the contract. Certain programs provide the customer with an option of paying fees as a percentage of the account value or incurring commission charges for each trade similar to brokerage and insurance product commissions. Trade commissions and any other fees received for additional services are recognized at a point in time once the performance obligation is satisfied.

Mortgage Broker Fees

For customers desiring a mortgage product not currently offered by the Company, the Company may refer such customers and, with permission, direct such customers' applications to certain third party mortgage brokers. Mortgage broker fees are received from these brokers for such customer referrals upon settlement of the underlying mortgage. The Company's entitlement to the consideration is contingent on the settlement of the mortgage which is highly susceptible to factors outside of the Company's influence, such as third party broker's underwriting requirements. Also, the uncertainty surrounding the consideration could be resolved in varying lengths of time, dependent upon the third party brokers. Therefore, mortgage broker fees are recognized at the settlement of the underlying mortgage when the consideration is received. Broker fees are recognized in the community banking segment.

Service Charges on Deposit Accounts

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. When the service is performed at a point in time, the Company recognizes and receives revenue when the service has been performed. When the service is performed over a period of a month, the Company recognizes and receives revenue in the month the service has been performed. Service charges on deposit accounts are recognized in the community banking segment.

Administrative Services

Administrative services revenue is earned from providing outsourced administrative services, such as data processing of payrolls, billing and cash management services, to temporary staffing service clients located throughout the United States. Fees are charged periodically (typically a payroll cycle) and computed in accordance with the contractually determined rate applied to the total gross billings administered for the period. The revenue is recognized over the period using a time-elapsed method to measure progress toward complete satisfaction of the performance obligation. Other fees are charged on a per occurrence basis as the service is provided in the billing cycle. The Company has certain contracts with customers to perform outsourced administrative services and short-term accounts receivable financing. For these contracts, the total fee is allocated between the administrative services revenue and interest income during the client onboarding process based on the specific client and services provided. Administrative services revenue is recognized in the specialty finance segment.

Card and Other Deposit Related Fees

Card related fees include interchange and merchant revenue, and fees related to debit and credit cards. Interchange revenue is related to the Company issued debit cards. Other deposit related fees primarily include pay by phone processing fees, ATM and safe deposit box fees, check order charges and foreign currency related fees. Card and deposit related fees are generally based on volume of transactions and are recognized at the point in time when the service has been performed. For any consideration that is constrained, the revenue is recognized once the uncertainty is known. Upfront fees received from certain contracts are recognized on a straight line basis over the term of the contract. Card and deposit related fees are recognized in the community banking segment.

Contract Balances

The following table provides information about contract assets, contract liabilities and receivables from contracts with customers:

(Dollars in thousands)	September 30, 2021		December 31, 2020		September 30, 2020
Contract assets	$	—	$	—	$	—
Contract liabilities	$	1,632	$	1,548	$	1,543
Mortgage broker fees receivable	$	31	$	20	$	28
Administrative services receivable	185		64		191
Wealth management receivable	12,001		10,144		10,232
Card related fees receivable	462		783		201
Total receivables from contracts with customer	$	12,679	$	11,011	$	10,652

Contract liabilities represent upfront fees that the Company received at inception of certain contracts. The revenue recognized that was included in the contract liability balance at beginning of the period totaled $798,000 and $1.3 million for the nine months ended September 30, 2021 and 2020, respectively. Receivables are recognized in the period the Company provides services and when the Company's right to consideration is unconditional. Card related fee receivable is the result of volume based fee that the Company receives from a customer on an annual basis in the second quarter of each year. Payment terms on other invoiced amounts are typically 30 days or less. Contract liabilities and receivables from contracts with customers are included within the accrued interest payable and other liabilities and accrued interest receivable and other assets line items, respectively, in the Consolidated Statements of Condition.

Transaction price allocated to the remaining performance obligations

The following table presents the estimated future timing of recognition of upfront fees related to card and deposit related fees. These upfront fees represent performance obligations that are unsatisfied or partially unsatisfied at the end of the reporting period.

(Dollars in thousands)
Estimated remaining in 2021	$	291
Estimated—2022	591
Estimated—2023	400
Estimated—2024	250
Estimated—2025	100
Total	$	1,632

Practical Expedients and Exemptions

The Company does not adjust the promised amount of consideration for the effects of a significant financing component if the Company expects, at contract inception, that the period between when the Company transfers a promised service to a customer and when the customer pays for that service is one year or less.

The Company recognizes the incremental costs of obtaining a contract as an expense when incurred if the amortization period of the asset that the entity otherwise would have recognized is one year or less.

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Segment Information

9 Months Ended

Sep. 30, 2021

Segment Reporting [Abstract]

Segment Information

Segment Information

The Company’s operations consist of three primary segments: community banking, specialty finance and wealth management.

The three reportable segments are strategic business units that are separately managed as they offer different products and services and have different marketing strategies. In addition, each segment’s customer base has varying characteristics and each segment has a different regulatory environment. While the Company’s management monitors each of the fifteen bank subsidiaries’ operations and profitability separately, these subsidiaries have been aggregated into one reportable operating segment due to the similarities in products and services, customer base, operations, profitability measures, and economic characteristics.

For purposes of internal segment profitability, management allocates certain intersegment and parent company balances. Management allocates a portion of revenues to the specialty finance segment related to loans and leases originated by the specialty finance segment and sold or assigned to the community banking segment. Similarly, for purposes of analyzing the contribution from the wealth management segment, management allocates a portion of the net interest income earned by the community banking segment on deposit balances of customers of the wealth management segment to the wealth management segment. See Note 9 — Deposits, for more information on these deposits. Finally, expenses incurred at the Wintrust parent company are allocated to each segment based on each segment's risk-weighted assets.

The segment financial information provided in the following table has been derived from the internal profitability reporting system used by management to monitor and manage the financial performance of the Company. The accounting policies of the segments are substantially similar to those described in “Summary of Significant Accounting Policies” in Note 1 of the Company’s 2020 Form 10-K. The Company evaluates segment performance based on after-tax profit or loss and other appropriate profitability measures common to each segment.

The following is a summary of certain operating information for reportable segments:

	Three Months Ended				$ Change in Contribution		% Change  in Contribution
(Dollars in thousands)	September 30, 2021		September 30, 2020
Net interest income:
Community Banking	$	220,007	$	196,803	$	23,204	12	%
Specialty Finance	52,659		46,454		6,205		13
Wealth Management	7,983		6,894		1,089		16
Total Operating Segments	280,649		250,151		30,498		12
Intersegment Eliminations	6,847		5,785		1,062		18
Consolidated net interest income	$	287,496	$	255,936	$	31,560	12	%
Provision for credit losses:
Community Banking	$	(7,433)	$	23,342	$	(30,775)	NM
Specialty Finance	(483)		1,684		(2,167)		NM
Wealth Management	—		—		—		—	%
Total Operating Segments	(7,916)		25,026		(32,942)		NM
Intersegment Eliminations	—		—		—		—
Consolidated provision for credit losses	$	(7,916)	$	25,026	$	(32,942)	NM
Non-interest income:
Community Banking	$	94,292	$	136,996	$	(42,704)	(31)	%
Specialty Finance	24,426		21,409		3,017		14
Wealth Management	33,557		26,152		7,405		28
Total Operating Segments	152,275		184,557		(32,282)		(17)
Intersegment Eliminations	(15,801)		(13,964)		(1,837)		13
Consolidated non-interest income	$	136,474	$	170,593	$	(34,119)	(20)	%
Net revenue:
Community Banking	$	314,299	$	333,799	$	(19,500)	(6)	%
Specialty Finance	77,085		67,863		9,222		14
Wealth Management	41,540		33,046		8,494		26
Total Operating Segments	432,924		434,708		(1,784)		0
Intersegment Eliminations	(8,954)		(8,179)		(775)		9
Consolidated net revenue	$	423,970	$	426,529	$	(2,559)	(1)	%
Segment profit:
Community Banking	$	68,790	$	70,584	$	(1,794)	(3)	%
Specialty Finance	30,202		29,859		343		1	%
Wealth Management	10,145		6,872		3,273		48
Consolidated net income	$	109,137	$	107,315	$	1,822	2	%
Segment assets:
Community Banking	$	38,464,169	$	35,729,021	$	2,735,148	8	%
Specialty Finance	7,918,933		6,732,765		1,186,168		18
Wealth Management	1,449,169		1,269,932		179,237		14
Consolidated total assets	$	47,832,271	$	43,731,718	$	4,100,553	9	%

NM - Not meaningful

	Nine Months Ended				$ Change in Contribution		% Change  in Contribution
(Dollars in thousands)	September 30, 2021		September 30, 2020
Net interest income:
Community Banking	$	643,175	$	609,316	$	33,859	6	%
Specialty Finance	142,752		129,581		13,171		10
Wealth Management	23,197		23,272		(75)		0
Total Operating Segments	809,124		762,169		46,955		6
Intersegment Eliminations	19,857		18,341		1,516		8
Consolidated net interest income	$	828,981	$	780,510	$	48,471	6	%
Provision for credit losses:
Community Banking	$	(69,168)	$	207,168	$	(276,336)	NM
Specialty Finance	606		5,872		(5,266)		(90)	%
Wealth Management	—		—		—		—
Total Operating Segments	(68,562)		213,040		(281,602)		NM
Intersegment Eliminations	—		—		—		—
Consolidated provision for credit losses	$	(68,562)	$	213,040	$	(281,602)	NM
Non-interest income:
Community Banking	$	331,970	$	347,697	$	(15,727)	(5)	%
Specialty Finance	69,999		64,548		5,451		8
Wealth Management	95,651		74,747		20,904		28
Total Operating Segments	497,620		486,992		10,628		2
Intersegment Eliminations	(45,267)		(41,164)		(4,103)		10
Consolidated non-interest income	$	452,353	$	445,828	$	6,525	1	%
Net revenue:
Community Banking	$	975,145	$	957,013	$	18,132	2	%
Specialty Finance	212,751		194,129		18,622		10
Wealth Management	118,848		98,019		20,829		21
Total Operating Segments	1,306,744		1,249,161		57,583		5
Intersegment Eliminations	(25,410)		(22,823)		(2,587)		11
Consolidated net revenue	$	1,281,334	$	1,226,338	$	54,996	4	%
Segment profit:
Community Banking	$	263,343	$	97,858	$	165,485	NM
Specialty Finance	77,955		74,680		3,275		4	%
Wealth Management	26,096		19,248		6,848		36
Consolidated net income	$	367,394	$	191,786	$	175,608	92	%

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Derivative Financial Instruments

9 Months Ended

Sep. 30, 2021

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Derivative Financial Instruments

Derivative Financial Instruments

The Company primarily enters into derivative financial instruments as part of its strategy to manage its exposure to changes in interest rates. Derivative instruments represent contracts between parties that result in one party delivering cash to the other party based on a notional amount and an underlying term (such as a rate, security price or price index) as specified in the contract. The amount of cash delivered from one party to the other is determined based on the interaction of the notional amount of the contract with the underlying term. Derivatives are also implicit in certain contracts and commitments.

The derivative financial instruments currently used by the Company to manage its exposure to interest rate risk include: (1) interest rate swaps and collars to manage the interest rate risk of certain fixed and variable rate assets and variable rate liabilities; (2) interest rate lock commitments provided to customers to fund certain mortgage loans to be sold into the secondary market; (3) forward commitments for the future delivery of such mortgage loans to protect the Company from adverse changes in interest rates and corresponding changes in the value of mortgage loans held-for-sale; (4) covered call options to economically hedge specific investment securities and receive fee income effectively enhancing the overall yield on such securities to compensate for net interest margin compression; and (5) options and swaps to economically hedge a portion of the fair value adjustments related to the Company's mortgage servicing rights portfolio. The Company also enters into derivatives (typically interest rate swaps) with certain qualified borrowers to facilitate the borrowers’ risk management strategies and concurrently enters into mirror-image derivatives with a third party counterparty, effectively making a market in the derivatives for such borrowers. Additionally, the Company enters into foreign currency contracts to manage foreign exchange risk associated with certain foreign currency denominated assets.

The Company recognizes derivative financial instruments in the consolidated financial statements at fair value regardless of the purpose or intent for holding the instrument. The Company records derivative assets and derivative liabilities on the Consolidated Statements of Condition within accrued interest receivable and other assets and accrued interest payable and other liabilities, respectively. Changes in the fair value of derivative financial instruments are either recognized in income or in shareholders’ equity as a component of accumulated other comprehensive income or loss depending on whether the derivative financial instrument qualifies for hedge accounting and, if so, whether it qualifies as a fair value hedge or cash flow hedge.

Changes in fair values of derivatives accounted for as fair value hedges are recorded in income in the same period and in the same income statement line as changes in the fair values of the hedged items that relate to the hedged risk(s). Changes in fair values of derivative financial instruments accounted for as cash flow hedges are recorded as a component of accumulated other comprehensive income or loss, net of deferred taxes, and reclassified to earnings when the hedged transaction affects earnings. Changes in fair values of derivative financial instruments not designated in a hedging relationship pursuant to ASC 815 are reported in non-interest income during the period of the change. Derivative financial instruments are valued by a third party and are corroborated by comparison with valuations provided by the respective counterparties. Fair values of certain mortgage banking derivatives (interest rate lock commitments and forward commitments to sell mortgage loans) are estimated based on changes in mortgage interest rates from the date of the commitment. The fair value of foreign currency derivatives is computed based on changes in foreign currency rates stated in the contract compared to those prevailing at the measurement date.

The table below presents the fair value of the Company’s derivative financial instruments as of September 30, 2021, December 31, 2020 and September 30, 2020:

	Derivative Assets						Derivative Liabilities
(In thousands)	September 30, 2021		December 31, 2020		September 30, 2020		September 30, 2021		December 31, 2020		September 30, 2020
Derivatives designated as hedging instruments under ASC 815:
Interest rate derivatives designated as Cash Flow Hedges	$	37,529	$	8,182	$	—	$	18,054	$	39,715	$	49,110
Interest rate derivatives designated as Fair Value Hedges	839		—		—		8,427		14,520		16,213
Total derivatives designated as hedging instruments under ASC 815	$	38,368	$	8,182	$	—	$	26,481	$	54,235	$	65,323
Derivatives not designated as hedging instruments under ASC 815:
Interest rate derivatives	$	130,947	$	221,205	$	253,238	$	131,097	$	221,608	$	253,530
Interest rate lock commitments	16,795		48,925		68,201		753		—		—
Forward commitments to sell mortgage loans	5,260		—		—		2,740		12,510		8,088
Foreign exchange contracts	242		111		49		243		112		49
Total derivatives not designated as hedging instruments under ASC 815	$	153,244	$	270,241	$	321,488	$	134,833	$	234,230	$	261,667
Total Derivatives	$	191,612	$	278,423	$	321,488	$	161,314	$	288,465	$	326,990

Cash Flow Hedges of Interest Rate Risk

The Company’s objectives in using interest rate derivatives are to add stability to net interest income and to manage its exposure to interest rate movements. To accomplish these objectives, the Company primarily uses interest rate swaps as part of its interest rate risk management strategy. Interest rate swaps designated as cash flow hedges involve the receipt of variable-rate amounts from a counterparty in exchange for the Company making fixed-rate payments over the life of the agreements without the exchange of the underlying notional amount. Interest rate collars designated as cash flow hedges involve the receipt of amounts in which the interest rate specified in the contract exceeds the agreed upon cap strike price or the payment of amounts in which the interest rate specified in the contract is below the agreed upon floor strike price at the end of each period.

As of September 30, 2021, the Company had 27 interest rate swap derivatives designated as cash flow hedges of variable rate deposits and certain junior subordinated debentures, and one interest rate collar derivative designated as a cash flow hedge of the Company's variable rate Term Facility. When the relationship between the hedged item and hedging instrument is highly effective at achieving offsetting changes in cash flows attributable to the hedged risk, changes in the fair value of these cash flow hedges are recorded in accumulated other comprehensive income or loss and are subsequently reclassified to interest expense as interest payments are made on such variable rate deposits. The changes in fair value (net of tax) are separately disclosed in the Consolidated Statements of Comprehensive Income.

The table below provides details on these cash flow hedges, summarized by derivative type and maturity, as of September 30, 2021:

	September 30, 2021
(In thousands)	Notional		Fair Value
Maturity Date	Amount		Asset (Liability)
Interest Rate Swaps:
October 2021	$	25,000	$	(9)
November 2021	20,000		(65)
December 2021	165,000		(812)
March 2022	500,000		(110)
May 2022	370,000		(4,335)
June 2022	160,000		(2,156)
July 2022	230,000		(3,218)
August 2022	235,000		(3,795)
March 2023	250,000		(133)
April 2024	250,000		784
July 2027 (1)	1,000,000		36,745
Interest Rate Collars:
September 2023	85,714		(3,421)
Total Cash Flow Hedges	$	3,290,714	$	19,475

(1)Interest rate swaps effective starting in July 2022.

A rollforward of the amounts in accumulated other comprehensive income or loss related to interest rate derivatives designated as cash flow hedges follows:

	Three Months Ended				Nine Months Ended
(In thousands)	September 30, 2021		September 30, 2020		September 30, 2021		September 30, 2020
Unrealized gain (loss) at beginning of period	$	10,471	$	(59,503)	$	(31,533)	$	(17,943)
Amount reclassified from accumulated other comprehensive income to interest expense on deposits, other borrowings and junior subordinated debentures	6,780		5,667		20,342		12,208
Amount of income (loss) recognized in other comprehensive income	2,224		4,726		30,666		(43,375)
Unrealized gain (loss) at end of period	$	19,475	$	(49,110)	$	19,475	$	(49,110)

As of September 30, 2021, the Company estimates that during the next twelve months $14.9 million will be reclassified from accumulated other comprehensive income or loss as an increase to interest expense.

Fair Value Hedges of Interest Rate Risk

Interest rate swaps designated as fair value hedges involve the payment of fixed amounts to a counterparty in exchange for the Company receiving variable payments over the life of the agreements without the exchange of the underlying notional amount. As of September 30, 2021, the Company has 15 interest rate swaps with an aggregate notional amount of $229.6 million that were designated as fair value hedges primarily associated with fixed rate commercial and industrial and commercial real estate loans as well as life insurance premium finance receivables. One of these interest rate swaps with an aggregate notional amount of $73.9 million has terms starting after September 30, 2021.

For derivatives designated and that qualify as fair value hedges, the net gain or loss from the entire change in the fair value of the derivative instrument is recognized in the same income statement line item as the earnings effect, including the net gain or loss, of the hedged item (interest income earned on fixed rate loans) when the hedged item affects earnings.

The following table presents the carrying amount of the hedged assets/(liabilities) and the cumulative amount of fair value hedging adjustment included in the carrying amount of the hedged assets/(liabilities) that are designated as a fair value hedge accounting relationship as of September 30, 2021:

		September 30, 2021
(In thousands) Derivatives in Fair Value Hedging Relationships	Location in the Statement of Condition	Carrying Amount of the Hedged Assets/(Liabilities)		Cumulative Amount of Fair Value Hedging Adjustment Included in the Carrying Amount of the Hedged Assets/(Liabilities)		Cumulative Amount of Fair Value Hedging Adjustment Remaining for any Hedged Assets (Liabilities) for which Hedge Accounting has been Discontinued
Interest rate swaps	Loans, net of unearned income	$	162,775	$	7,815	$	(138)
	Available-for-sale debt securities	1,229		84		—

The following table presents the loss or gain recognized related to derivative instruments that are designated as fair value hedges for the respective period:

(In thousands) Derivatives in Fair Value Hedging Relationships	Location of (Loss)/Gain Recognized in Income on Derivative	Three Months Ended		Nine Months Ended
		September 30, 2021		September 30, 2021
Interest rate swaps	Interest and fees on loans	$	31	$	61
	Interest income - investment securities	—		—

Non-Designated Hedges

The Company does not use derivatives for speculative purposes. Derivatives not designated as accounting hedges are used to manage the Company’s economic exposure to interest rate movements and other identified risks but do not meet the strict hedge accounting requirements of ASC 815. Changes in the fair value of derivatives not designated in hedging relationships are recorded directly in earnings.

Interest Rate Derivatives—Periodically, the Company may purchase interest rate cap derivatives designed to act as an economic hedge of the risk of the negative impact on its fixed-rate loan portfolios from rising interest rates, most notably the LIBOR index. As of September 30, 2021, the Company held interest rate caps with an aggregate notional value of $1.0 billion.

Additionally, the Company has interest rate derivatives, including swaps and option products, resulting from a service the Company provides to certain qualified borrowers. The Company’s banking subsidiaries execute certain derivative products (typically interest rate swaps) directly with qualified commercial borrowers to facilitate their respective risk management strategies. For example, these arrangements allow the Company’s commercial borrowers to effectively convert a variable rate loan to a fixed rate. In order to minimize the Company’s exposure on these transactions, the Company simultaneously executes offsetting derivatives with third parties. In most cases, the offsetting derivatives have mirror-image terms, which result in the positions’ changes in fair value substantially offsetting through earnings each period. However, to the extent that the derivatives are not a mirror-image and because of differences in counterparty credit risk, changes in fair value will not completely offset resulting in some earnings impact each period. Changes in the fair value of these derivatives are included in other non-interest income. At September 30, 2021, the Company had interest rate derivative transactions with an aggregate notional amount of approximately $9.2 billion (all interest rate swaps and caps with customers and third parties) related to this program. These interest rate derivatives had maturity dates ranging from October 2021 to February 2045.

Mortgage Banking Derivatives—These derivatives include interest rate lock commitments provided to customers to fund certain mortgage loans to be sold into the secondary market and forward commitments for the future delivery of such loans. It is the Company’s practice to enter into forward commitments for the future delivery of a portion of our residential mortgage loan production when interest rate lock commitments are entered into in order to economically hedge the effect of future changes in interest rates on its commitments to fund the loans as well as on its portfolio of mortgage loans held-for-sale. The Company’s mortgage banking derivatives have not been designated as being in hedge relationships. At September 30, 2021, the Company had forward commitments to sell mortgage loans with an aggregate notional amount of approximately $1.3 billion and interest rate lock commitments with an aggregate notional amount of approximately $624.8 million. The fair values of these derivatives were estimated based on changes in mortgage rates from the dates of the commitments. Changes in the fair value of these mortgage banking derivatives are included in mortgage banking revenue.

Foreign Currency Derivatives—These derivatives include foreign currency contracts used to manage the foreign exchange risk associated with foreign currency denominated assets and transactions. Foreign currency contracts, which include spot and

forward contracts, represent agreements to exchange the currency of one country for the currency of another country at an agreed-upon price on an agreed-upon settlement date. As a result of fluctuations in foreign currencies, the U.S. dollar-equivalent value of the foreign currency denominated assets or forecasted transactions increase or decrease. Gains or losses on the derivative instruments related to these foreign currency denominated assets or forecasted transactions are expected to substantially offset this variability. As of September 30, 2021, the Company held foreign currency derivatives with an aggregate notional amount of approximately $19.3 million.

Other Derivatives—Periodically, the Company will sell options to a bank or dealer for the right to purchase certain securities held within the banks’ investment portfolios (covered call options). These option transactions are designed primarily to mitigate overall interest rate risk and to increase the total return associated with the investment securities portfolio. These options do not qualify as accounting hedges pursuant to ASC 815, and, accordingly, changes in fair value of these contracts are recognized as other non-interest income. There were no covered call options outstanding as of September 30, 2021, December 31, 2020 or September 30, 2020.

Periodically, the Company will purchase options for the right to purchase securities not currently held within the banks' investment portfolios or enter into interest rate swaps in which the Company elects to not designate such derivatives as hedging instruments. These option and swap transactions are designed primarily to economically hedge a portion of the fair value adjustments related to the Company's mortgage servicing rights portfolio. The gain or loss associated with these derivative contracts are included in mortgage banking revenue. There were no such options or swaps outstanding as of September 30, 2021, December 31, 2020 or September 30, 2020.

Amounts included in the Consolidated Statements of Income related to derivative instruments not designated in hedge relationships were as follows:

(In thousands)		Three Months Ended				Nine Months Ended
Derivative	Location in income statement	September 30, 2021		September 30, 2020		September 30, 2021		September 30, 2020
Interest rate swaps and caps	Trading gains (losses), net	$	55	$	135	$	(56)	$	(996)
Mortgage banking derivatives	Mortgage banking revenue	(4,201)		11,202		(32,160)		71,761
Foreign exchange contracts	Trading (losses) gains, net	(1)		5		(9)		(8)
Covered call options	Fees from covered call options	1,157		—		2,545		2,292
Derivative contract held as economic hedge on MSRs	Mortgage banking revenue	—		—		—		4,749

Credit Risk

Derivative instruments have inherent risks, primarily market risk and credit risk. Market risk is associated with changes in interest rates and credit risk relates to the risk that the counterparty will fail to perform according to the terms of the agreement. The amounts potentially subject to market and credit risks are the streams of interest payments under the contracts and the market value of the derivative instrument and not the notional principal amounts used to express the volume of the transactions. Market and credit risks are managed and monitored as part of the Company's overall asset-liability management process, except that the credit risk related to derivatives entered into with certain qualified borrowers is managed through the Company's standard loan underwriting process since these derivatives are secured through collateral provided by the loan agreements. Actual exposures are monitored against various types of credit limits established to contain risk within parameters. When deemed necessary, appropriate types and amounts of collateral are obtained to minimize credit exposure.

The Company has agreements with certain of its interest rate derivative counterparties that contain cross-default provisions, which provide that if the Company defaults on any of its indebtedness, including default where repayment of the indebtedness has not been accelerated by the lender, then the Company could also be declared in default on its derivative obligations. The Company also has agreements with certain of its derivative counterparties that contain a provision allowing the counterparty to terminate the derivative positions if the Company fails to maintain its status as a well or adequately capitalized institution, which would require the Company to settle its obligations under the agreements. As of September 30, 2021, the fair value of interest rate derivatives in a net liability position that were subject to such agreements, which includes accrued interest related to these agreements, was $115.7 million. If the Company had breached any of these provisions and the derivatives were terminated as a result, the Company would have been required to settle its obligations under the agreements at the termination value and would have been required to pay any additional amounts due in excess of amounts previously posted as collateral with the respective counterparty.

The Company is also exposed to the credit risk of its commercial borrowers who are counterparties to interest rate derivatives with the banks. This counterparty risk related to the commercial borrowers is managed and monitored through the banks' standard underwriting process applicable to loans since these derivatives are secured through collateral provided by the loan agreement. The counterparty risk associated with the mirror-image swaps executed with third parties is monitored and managed in connection with the Company's overall asset liability management process.

The Company records interest rate derivatives subject to master netting agreements at their gross value and does not offset derivative assets and liabilities on the Consolidated Statements of Condition. The tables below summarize the Company's interest rate derivatives and offsetting positions as of the dates shown.

	Derivative Assets						Derivative Liabilities
	Fair Value						Fair Value
(In thousands)	September 30, 2021		December 31, 2020		September 30, 2020		September 30, 2021		December 31, 2020		September 30, 2020
Gross Amounts Recognized	$	169,315	$	229,387	$	253,238	$	157,578	$	275,843	$	318,853
Less: Amounts offset in the Statements of Financial Condition	—		—		—		—		—		—
Net amount presented in the Statements of Financial Condition	$	169,315	$	229,387	$	253,238	$	157,578	$	275,843	$	318,853
Gross amounts not offset in the Statements of Financial Condition
Offsetting Derivative Positions	(42,645)		(8,647)		(353)		(42,645)		(8,647)		(353)
Collateral Posted	—		—		—		(110,440)		(266,832)		(318,071)
Net Credit Exposure	$	126,670	$	220,740	$	252,885	$	4,493	$	364	$	429

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Fair Values of Assets and Liabilities

9 Months Ended

Sep. 30, 2021

Fair Value Disclosures [Abstract]

Fair Values of Assets and Liabilities

Fair Values of Assets and Liabilities

The Company measures, monitors and discloses certain of its assets and liabilities on a fair value basis. These financial assets and financial liabilities are measured at fair value in three levels, based on the markets in which the assets and liabilities are traded and the observability of the inputs used to determine fair value. These levels are:

•Level 1—unadjusted quoted prices in active markets for identical assets or liabilities.

•Level 2—inputs other than quoted prices included in Level 1 that are observable for the asset or liability, either directly or indirectly. These include quoted prices for similar assets or liabilities in active markets, quoted prices for identical or similar assets or liabilities in markets that are not active, inputs other than quoted prices that are observable for the asset or liability or inputs that are derived principally from or corroborated by observable market data by correlation or other means.

•Level 3—significant unobservable inputs that reflect the Company’s own assumptions that market participants would use in pricing the assets or liabilities. Level 3 assets and liabilities include financial instruments whose value is determined using pricing models, discounted cash flow methodologies, or similar techniques, as well as instruments for which the determination of fair value requires significant management judgment or estimation.

A financial instrument’s categorization within the above valuation hierarchy is based upon the lowest level of input that is significant to the fair value measurement. The Company’s assessment of the significance of a particular input to the fair value measurement in its entirety requires judgment, and considers factors specific to the assets or liabilities. The following is a description of the valuation methodologies used for the Company’s assets and liabilities measured at fair value on a recurring basis.

Available-for-sale debt securities, trading account securities and equity securities with readily determinable fair value—Fair values for available-for-sale debt securities, trading account securities and equity securities with readily determinable fair value are typically based on prices obtained from independent pricing vendors. Securities measured with these valuation techniques are generally classified as Level 2 of the fair value hierarchy. Typically, standard inputs such as benchmark yields, reported trades for similar securities, issuer spreads, benchmark securities, bids, offers and reference data including market research publications are used to fair value these securities. When these inputs are not available, broker/dealer quotes may be obtained by the vendor to determine the fair value of the security. We review the vendor’s pricing methodologies to determine if observable market information is being used, versus unobservable inputs. Fair value measurements using significant inputs that are unobservable in the market due to limited activity or a less liquid market are classified as Level 3 in the fair value hierarchy.

The fair value of U.S. Treasury securities and certain equity securities with readily determinable fair value are based on unadjusted quoted prices in active markets for identical securities. As such, these securities are classified as Level 1 in the fair value hierarchy.

The Company’s Investment Operations Department is responsible for the valuation of Level 3 available-for-sale debt securities. The methodology and variables used as inputs in pricing Level 3 securities are derived from a combination of observable and unobservable inputs. The unobservable inputs are determined through internal assumptions that may vary from period to period due to external factors, such as market movement and credit rating adjustments.

At September 30, 2021, the Company classified $117.7 million of municipal securities as Level 3. These municipal securities are bond issues for various municipal government entities primarily located in the Chicago metropolitan area and southern Wisconsin and are privately placed, non-rated bonds without CUSIP numbers. The Company’s methodology for pricing these securities focuses on three distinct inputs: equivalent rating, yield and other pricing terms. To determine the rating for a given non-rated investment debt security, the Investment Operations Department references a rated, publicly issued bond by the same issuer if available. A reduction is then applied to the rating obtained from the comparable bond, as the Company believes if liquidated, a non-rated bond would be valued less than a similar bond with a verifiable rating. The reduction applied by the Company is one complete rating grade (i.e. a “AA” rating for a comparable bond would be reduced to “A” for the Company’s valuation). For bond issues without comparable bond proxies, a rating of "BBB" was assigned. In the third quarter of 2021, all of the ratings derived by the Investment Operations Department using the above process were “BBB” or better. The fair value measurement noted above is sensitive to the rating input, as a higher rating typically results in an increased valuation. The remaining pricing inputs used in the bond valuation are observable. Based on the rating determined in the above process, Investment Operations obtains a corresponding current market yield curve available to market participants. Other terms including coupon, maturity date, redemption price, number of coupon payments per year, and accrual method are obtained from the individual bond term sheets. Certain municipal bonds held by the Company at September 30, 2021 are continuously callable. When valuing these bonds, the fair value is capped at par value as the Company assumes a market participant would not pay more than par for a continuously callable bond.

Mortgage loans held-for-sale—The fair value of mortgage loans held-for-sale is determined by reference to investor price sheets for loan products with similar characteristics. As such, these loans are classified as Level 2 in the fair value hierarchy.

Loans held-for-investment—The fair value for loans in which the Company elected the fair value option is estimated by discounting future scheduled cash flows for the specific loan through maturity, adjusted for estimated credit losses and prepayments. The Company uses a discount rate based on the actual coupon rate of the underlying loan. At September 30, 2021, the Company classified $12.1 million of loans held-for-investment as Level 3. The assumed discount rate used as an input to value these loans at September 30, 2021 was 2.88%. The higher the rate utilized to discount estimated future cash flows, the lower the fair value measurement. As noted above, the fair value estimate also includes assumptions of prepayment speeds and credit losses. The Company included a prepayments speed assumption of 12.77% at September 30, 2021. Prepayment speeds are inversely related to the fair value of these loans as an increase in prepayment speeds results in a decreased valuation. Additionally, the weighted average credit discount used as an input to value the specific loans was 0.51% with credit loss discount ranging from 0%-3% at September 30, 2021.

MSRs—Fair value for MSRs is determined utilizing a valuation model which calculates the fair value of each servicing rights based on the present value of estimated future cash flows. The Company uses a discount rate commensurate with the risk associated with each servicing rights, given current market conditions. At September 30, 2021, the Company classified $133.6 million of MSRs as Level 3. The weighted average discount rate used as an input to value the pool of MSRs at September 30, 2021 was 9.82% with discount rates applied ranging from 7%-19%. The higher the rate utilized to discount estimated future cash flows, the lower the fair value measurement. The fair value of MSRs was also estimated based on other assumptions including prepayment speeds and the cost to service. Prepayment speeds ranged from 6%-92% or a weighted average prepayment speed of 12.77%. Further, for current and delinquent loans, the Company assumed a weighted average cost of servicing of $75 and $287, respectively, per loan. Prepayment speeds and the cost to service are both inversely related to the fair value of MSRs as an increase in prepayment speeds or the cost to service results in a decreased valuation. See Note 8 - Mortgage Servicing Rights (“MSRs”) for further discussion of MSRs.

Derivative instruments—The Company’s derivative instruments include interest rate swaps, caps and collars, commitments to fund mortgages for sale into the secondary market (interest rate locks), forward commitments to end investors for the sale of mortgage loans and foreign currency contracts. Interest rate swaps, caps and collars are valued by a third party, using models that primarily use market observable inputs, such as yield curves, and are classified as Level 2 in the fair value hierarchy. The credit risk associated with derivative financial instruments that are subject to master netting agreements is measured on a net basis by counterparty portfolio. The fair value for mortgage-related derivatives is based on changes in mortgage rates from the

date of the commitments. The fair value of foreign currency derivatives is computed based on change in foreign currency rates stated in the contract compared to those prevailing at the measurement date.

At September 30, 2021, the Company classified $14.6 million of derivative assets related to interest rate locks as Level 3. The fair value of interest rate locks is based on prices obtained for loans with similar characteristics from third parties, adjusted for the pull-through rate, which represents the Company’s best estimate of the likelihood that a committed loan will ultimately fund. The weighted-average pull-through rate at September 30, 2021 was 86% with pull-through rates applied ranging from 1% to 100%. Pull-through rates are directly related to the fair value of interest rate locks as an increase in the pull-through rate results in an increased valuation.

Nonqualified deferred compensation assets—The underlying assets relating to the nonqualified deferred compensation plan are included in a trust and primarily consist of non-exchange traded institutional funds which are priced based by an independent third party service. These assets are classified as Level 2 in the fair value hierarchy.

The following tables present the balances of assets and liabilities measured at fair value on a recurring basis for the periods presented:

	September 30, 2021
(In thousands)	Total		Level 1		Level 2		Level 3
Available-for-sale securities
U.S. Treasury	$	6,000	$	6,000	$	—	$	—
U.S. Government agencies	53,275		—		53,275		—
Municipal	174,600		—		56,876		117,724
Corporate notes	99,118		—		99,118		—
Mortgage-backed	2,040,485		—		2,040,485		—
Trading account securities	1,103		—		1,103		—
Equity securities with readily determinable fair value	88,193		80,127		8,066		—
Mortgage loans held-for-sale	925,312		—		925,312		—
Loans held-for-investment	30,979		—		18,847		12,132
MSRs	133,552		—		—		133,552
Nonqualified deferred compensation assets	15,797		—		15,797		—
Derivative assets	191,612		—		177,000		14,612
Total	$	3,760,026	$	86,127	$	3,395,879	$	278,020
Derivative liabilities	$	161,314	$	—	$	161,314	$	—

 

	December 31, 2020
(In thousands)	Total		Level 1		Level 2		Level 3
Available-for-sale securities
U.S. Treasury	$	304,971	$	304,971	$	—	$	—
U.S. Government agencies	84,513		—		82,547		1,966
Municipal	146,910		—		37,034		109,876
Corporate notes	91,405		—		91,405		—
Mortgage-backed	2,428,040		—		2,428,040		—
Trading account securities	671		—		671		—
Equity securities with readily determinable fair value	90,862		82,796		8,066		—
Mortgage loans held-for-sale	1,272,090		—		1,272,090		—
Loans held-for-investment	55,134		—		44,854		10,280
MSRs	92,081		—		—		92,081
Nonqualified deferred compensation assets	15,398		—		15,398		—
Derivative assets	278,423		—		230,332		48,091
Total	$	4,860,498	$	387,767	$	4,210,437	$	262,294
Derivative liabilities	$	288,465	$	—	$	288,465	$	—

	September 30, 2020
(In thousands)	Total		Level 1		Level 2		Level 3
Available-for-sale securities
U.S. Treasury	$	280,108	$	280,108	$	—	$	—
U.S. Government agencies	178,666		—		176,537		2,129
Municipal	154,195		—		34,724		119,471
Corporate notes	104,135		—		104,135		—
Mortgage-backed	2,229,355		—		2,229,355		—
Trading account securities	1,720		—		1,720		—
Equity securities with readily determinable fair value	54,398		46,332		8,066		—
Mortgage loans held-for-sale	959,671		—		959,671		—
Loans held-for-investment	253,515		—		240,902		12,613
MSRs	86,907		—		—		86,907
Nonqualified deferred compensation assets	14,197		—		14,197		—
Derivative assets	321,488		—		254,601		66,887
Total	$	4,638,355	$	326,440	$	4,023,908	$	288,007
Derivative liabilities	$	326,990	$	—	$	326,990	$	—

The aggregate remaining contractual principal balance outstanding as of September 30, 2021, December 31, 2020 and September 30, 2020 for mortgage loans held-for-sale measured at fair value under ASC 825 was $900.8 million, $1.2 billion and $927.1 million, respectively, while the aggregate fair value of mortgage loans held-for-sale was $925.3 million, $1.3 billion and $959.7 million, for the same respective periods, as shown in the above tables. There were $122.6 million of loans past due greater than 90 days and still accruing in the mortgage loans held-for-sale portfolio as of September 30, 2021 compared to $134.1 million as of December 31, 2020 and $27.3 million as of September 30, 2020. All of the loans past due greater than 90 days and still accruing as of September 30, 2021 were individual delinquent mortgage loans bought back from GNMA at the unconditional option of the Company as servicer for those loans.

The changes in Level 3 assets measured at fair value on a recurring basis during the three and nine months ended September 30, 2021 and 2020 are summarized as follows:

			U.S. Government agencies		Loans held-for- investment		Mortgage servicing rights		Derivative assets
(In thousands)	Municipal
Balance at July 1, 2021	$	117,606	$	—	$	11,007	$	127,604	$	22,570
Total net gains (losses) included in:
Net income (1)	—		—		54		5,948		(7,958)
Other comprehensive income (loss)	(757)		—		—		—		—
Purchases	875		—		—		—		—
Issuances	—		—		—		—		—
Sales	—		—		—		—		—
Settlements	—		—		(588)		—		—
Net transfers into/(out of) Level 3	—		—		1,659		—		—
Balance at September 30, 2021	$	117,724	$	—	$	12,132	$	133,552	$	14,612

(1)Changes in the balance of MSRs and derivative assets related to fair value adjustments are recorded as components of mortgage banking revenue. Changes in the balance of loans held-for-investment related to fair value adjustments are recorded as other non-interest income.

			U.S. Government Agencies		Loans held-for- investment		Mortgage servicing rights		Derivative Assets
(In thousands)	Municipal
Balance at January 1, 2021	$	109,876	$	1,966	$	10,280	$	92,081	$	48,091
Total net gains (losses) included in:
Net income (1)	—		(4)		(309)		41,471		(33,479)
Other comprehensive income (loss)	(3,199)		(24)		—		—		—
Purchases	19,038		—		—		—		—
Issuances	—		—		—		—		—
Sales	—		—		—		—		—
Settlements	(7,991)		(1,938)		(4,565)		—		—
Net transfers into/(out of) Level 3	—		—		6,726		—		—
Balance at September 30, 2021	$	117,724	$	—	$	12,132	$	133,552	$	14,612

			U.S. Government agencies		Loans held-for- investment		Mortgage servicing rights		Derivative assets
(In thousands)	Municipal
Balance at July 1, 2020	$	117,255	$	2,293	$	13,953	$	77,203	$	58,433
Total net gains (losses) included in:
Net income (1)	—		—		47		9,704		8,454
Other comprehensive income (loss)	64		(7)		—		—		—
Purchases	3,221		—		—		—		—
Issuances	—		—		—		—		—
Sales	—		—		—		—		—
Settlements	(1,069)		(157)		(7,877)		—		—
Net transfers into/(out of) Level 3	—		—		6,490		—		—
Balance at September 30, 2020	$	119,471	$	2,129	$	12,613	$	86,907	$	66,887

			U.S. Government Agencies		Loans held-for- investment		Mortgage servicing rights		Derivative Assets
(In thousands)	Municipal
Balance at January 1, 2020	$	111,950	$	2,646	$	9,620	$	85,638	$	2,631
Total net gains (losses) included in:
Net income (1)	—		—		169		1,269		64,256
Other comprehensive income (loss)	(1,731)		(46)		—		—		—
Purchases	16,093		—		—		—		—
Issuances	—		—		—		—		—
Sales	—		—		—		—		—
Settlements	(6,841)		(471)		(9,337)		—		—
Net transfers into/(out of) Level 3	—		—		12,161		—		—
Balance at September 30, 2020	$	119,471	$	2,129	$	12,613	$	86,907	$	66,887

(1)Changes in the balance of MSRs and derivative assets related to fair value adjustments are recorded as components of mortgage banking revenue. Changes in the balance of loans held-for-investment related to fair value adjustments are recorded as other non-interest income.

Also, the Company may be required, from time to time, to measure certain other assets at fair value on a nonrecurring basis in accordance with GAAP. These adjustments to fair value usually result from impairment charges on individual assets. For assets measured at fair value on a nonrecurring basis that were still held in the balance sheet at the end of the period, the following table provides the carrying value of the related individual assets or portfolios at September 30, 2021:

	September 30, 2021								Three Months Ended September 30, 2021 Fair Value Losses Recognized, net		Nine Months Ended September 30, 2021 Fair Value Losses Recognized, net
(In thousands)	Total		Level 1		Level 2		Level 3
Individually assessed loans - foreclosure probable and collateral-dependent	$	78,653	$	—	$	—	$	78,653	$	1,425	$	17,956
Other real estate owned (1)	13,845		—		—		13,845		93		1,012
Total	$	92,498	$	—	$	—	$	92,498	$	1,518	$	18,968

(1)Fair value losses recognized, net on other real estate owned include valuation adjustments and charge-offs during the respective period.

Individually assessed loans—In accordance with ASC 326, the allowance for credit losses for loans and other financial assets held at amortized cost should be measured on a collective or pooled basis when such assets exhibit similar risk characteristics. In instances in which a financial asset does not exhibit similar risk characteristics to a pool, the Company is required to measure such allowance for credit losses on an individual asset basis. For the Company's loan portfolio, nonaccrual loans and TDRs are considered to not exhibit similar risk characteristics as pools and thus are individually assessed. Credit losses are measured by estimating the fair value of the loan based on the present value of expected cash flows, the market price of the loan, or the fair value of the underlying collateral. Individually assessed loans are considered a fair value measurement where an allowance for credit loss is established based on the fair value of collateral. Appraised values on relevant real estate properties, which may require adjustments to market-based valuation inputs, are generally used on foreclosure probable and collateral-dependent loans within the real estate portfolios.

The Company’s Managed Assets Division is primarily responsible for the valuation of Level 3 inputs of individually assessed loans. For more information on individually assessed loans refer to Note 6 – Allowance for Credit Losses. At September 30, 2021, the Company had $109.0 million of individually assessed loans classified as Level 3. Of the $109.0 million of individually assessed loans, $78.7 million were measured at fair value based on the underlying collateral of the loan as shown in the table above. The remaining $30.3 million were valued based on discounted cash flows in accordance with ASC 310.

Other real estate owned —Other real estate owned is comprised of real estate acquired in partial or full satisfaction of loans and is included in other assets. Other real estate owned is recorded at its estimated fair value less estimated selling costs at the date of transfer, with any excess of the related loan balance over the fair value less expected selling costs charged to the allowance for loan losses. Subsequent changes in value are reported as adjustments to the carrying amount and are recorded in other non-interest expense. Gains and losses upon sale, if any, are also charged to other non-interest expense. Fair value is generally based on third party appraisals and internal estimates that are adjusted by a discount representing the estimated cost of sale and is therefore considered a Level 3 valuation.

The Company’s Managed Assets Division is primarily responsible for the valuation of Level 3 inputs for other real estate owned. At September 30, 2021, the Company had $13.8 million of other real estate owned classified as Level 3. The unobservable input applied to other real estate owned relates to the 10% reduction to the appraisal value representing the estimated cost of sale of the foreclosed property. A higher discount for the estimated cost of sale results in a decreased carrying value.

The valuation techniques and significant unobservable inputs used to measure both recurring and non-recurring Level 3 fair value measurements at September 30, 2021 were as follows:

(Dollars in thousands)	Fair Value		Valuation Methodology	Significant Unobservable Input	Range of Inputs	Weighted Average of Inputs	Impact to valuation from an increased or higher input value
Measured at fair value on a recurring basis:
Municipal Securities	$	117,724	Bond pricing	Equivalent rating	BBB-AA+	N/A	Increase
Loans held-for-investment	12,132		Discounted cash flows	Discount rate	2.88%	2.88%	Decrease
				Credit discount	0%-3%	0.51%	Decrease
				Constant prepayment rate (CPR)	12.77%	12.77%	Decrease
MSRs	133,552		Discounted cash flows	Discount rate	7%-19%	9.82%	Decrease
				Constant prepayment rate (CPR)	6%-92%	12.77%	Decrease
				Cost of servicing	$70-$200	$75	Decrease
				Cost of servicing - delinquent	$200-$1,000	$287	Decrease
Derivatives	14,612		Discounted cash flows	Pull-through rate	1%-100%	86.28%	Increase
Measured at fair value on a non-recurring basis:
Individually assessed loans - foreclosure probable and collateral-dependent	$	78,653	Appraisal value	Appraisal adjustment - cost of sale	10%	10.00%	Decrease
Other real estate owned	13,845		Appraisal value	Appraisal adjustment - cost of sale	10%	10.00%	Decrease

The Company is required under applicable accounting guidance to report the fair value of all financial instruments on the Consolidated Statements of Condition, including those financial instruments carried at cost. The table below presents the carrying amounts and estimated fair values of the Company’s financial instruments as of the dates shown:

	At September 30, 2021				At December 31, 2020				At September 30, 2020
	Carrying		Fair		Carrying		Fair		Carrying		Fair
(In thousands)	Value		Value		Value		Value		Value		Value
Financial Assets:
Cash and cash equivalents	$	462,299	$	462,299	$	322,474	$	322,474	$	308,695	$	308,695
Interest-bearing deposits with banks	5,232,315		5,232,315		4,802,527		4,802,527		3,825,823		3,825,823
Available-for-sale securities	2,373,478		2,373,478		3,055,839		3,055,839		2,946,459		2,946,459
Held-to-maturity securities	2,736,722		2,699,480		579,138		593,767		560,267		575,947
Trading account securities	1,103		1,103		671		671		1,720		1,720
Equity securities with readily determinable fair value	88,193		88,193		90,862		90,862		54,398		54,398
FHLB and FRB stock, at cost	135,408		135,408		135,588		135,588		135,568		135,568
Brokerage customer receivables	26,378		26,378		17,436		17,436		16,818		16,818
Mortgage loans held-for-sale, at fair value	925,312		925,312		1,272,090		1,272,090		959,671		959,671
Loans held-for-investment, at fair value	30,979		30,979		55,134		55,134		253,515		253,515
Loans held-for-investment, at amortized cost	33,233,064		33,276,688		32,023,939		31,871,683		31,882,040		31,723,559
Nonqualified deferred compensation assets	15,797		15,797		15,398		15,398		14,197		14,197
Derivative assets	191,612		191,612		278,423		278,423		321,488		321,488
Accrued interest receivable and other	272,293		272,293		272,339		272,339		272,940		272,940
Total financial assets	$	45,724,953	$	45,731,335	$	42,921,858	$	42,784,231	$	41,553,599	$	41,410,798
Financial Liabilities
Non-maturity deposits	$	35,822,012	$	35,822,012	$	32,116,023	$	32,116,023	$	30,778,127	$	30,778,127
Deposits with stated maturities	4,130,546		4,124,199		4,976,628		4,969,849		5,066,295		5,063,732
FHLB advances	1,241,071		1,164,168		1,228,429		1,172,315		1,228,422		1,207,203
Other borrowings	504,527		504,527		518,928		518,928		507,395		507,395
Subordinated notes	436,811		474,171		436,506		473,093		436,385		473,825
Junior subordinated debentures	253,566		207,675		253,566		204,713		253,566		208,333
Derivative liabilities	161,314		161,314		288,465		288,465		326,990		326,990
Accrued interest payable	15,030		15,030		15,645		15,645		21,310		21,310
Total financial liabilities	$	42,564,877	$	42,473,096	$	39,834,190	$	39,759,031	$	38,618,490	$	38,586,915

Not all the financial instruments listed in the table above are subject to the disclosure provisions of ASC Topic 820, as certain assets and liabilities result in their carrying value approximating fair value. These include cash and cash equivalents, interest bearing deposits with banks, brokerage customer receivables, FHLB and FRB stock, accrued interest receivable and accrued interest payable and non-maturity deposits.

The following methods and assumptions were used by the Company in estimating fair values of financial instruments that were not previously disclosed.

Held-to-maturity securities. Held-to-maturity securities include U.S. Government-sponsored agency securities and municipal bonds issued by various municipal government entities primarily located in the Chicago metropolitan area and southern Wisconsin. Fair values for held-to-maturity securities are typically based on prices obtained from independent pricing vendors. In accordance with ASC 820, the Company has generally categorized these held-to-maturity securities as a Level 2 fair value measurement. Fair values for certain other held-to-maturity securities are based on the bond pricing methodology discussed previously related to certain available-for-sale securities. In accordance with ASC 820, the Company has categorized these held-to-maturity securities as a Level 3 fair value measurement.

Loans held-for-investment, at amortized cost. Fair values are estimated for portfolios of loans with similar financial characteristics. Loans are analyzed by type such as commercial, residential real estate, etc. Each category is further segmented by interest rate type (fixed and variable) and term. For variable-rate loans that reprice frequently, estimated fair values are based on carrying values. The fair value of residential loans is based on secondary market sources for securities backed by similar loans, adjusted for differences in loan characteristics. The fair value for other fixed rate loans is estimated by discounting scheduled cash flows through the estimated maturity using estimated market discount rates that reflect credit and interest rate risks inherent in the loan. In accordance with ASC 820, the Company has categorized loans as a Level 3 fair value measurement.

Deposits with stated maturities. The fair value of certificates of deposit is based on the discounted value of contractual cash flows. The discount rate is estimated using the rates currently in effect for deposits of similar remaining maturities. In accordance with ASC 820, the Company has categorized deposits with stated maturities as a Level 3 fair value measurement.

FHLB advances. The fair value of FHLB advances is obtained from the FHLB which uses a discounted cash flow analysis based on current market rates of similar maturity debt securities to discount cash flows. In accordance with ASC 820, the Company has categorized FHLB advances as a Level 3 fair value measurement.

Subordinated notes. The fair value of the subordinated notes is based on a market price obtained from an independent pricing vendor. In accordance with ASC 820, the Company has categorized subordinated notes as a Level 2 fair value measurement.

Junior subordinated debentures. The fair value of the junior subordinated debentures is based on the discounted value of contractual cash flows. In accordance with ASC 820, the Company has categorized junior subordinated debentures as a Level 3 fair value measurement.

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Stock-Based Compensation Plans

9 Months Ended

Sep. 30, 2021

Share-based Payment Arrangement, Noncash Expense [Abstract]

Stock-Based Compensation Plans

Stock-Based Compensation Plans

In May 2015, the Company’s shareholders approved the 2015 Stock Incentive Plan (“the 2015 Plan”) which provides for the issuance of up to 5,485,000 shares of common stock. The 2015 Plan replaced the 2007 Stock Incentive Plan (“the 2007 Plan”) which replaced the 1997 Stock Incentive Plan (“the 1997 Plan”). The 2015 Plan, the 2007 Plan and the 1997 Plan are collectively referred to as “the Plans.” The 2015 Plan has substantially similar terms to the 2007 Plan and the 1997 Plan. Awards granted under the Plans for which common shares are not issued by reason of cancellation, forfeiture, lapse of such award or settlement of such award in cash, are again available under the 2015 Plan. All grants made after the approval of the 2015 Plan are made pursuant to the 2015 Plan. As of September 30, 2021, approximately 976,000 shares were available for future grants assuming the maximum number of shares are issued for the performance awards outstanding. The Plans cover substantially all employees of Wintrust. The Compensation Committee of the Board of Directors administers all stock-based compensation programs and authorizes all awards granted pursuant to the Plans.

The Plans permit the grant of incentive stock options, non-qualified stock options, stock appreciation rights, stock awards, restricted share or unit awards, performance awards and other incentive awards valued in whole or in part by reference to the Company’s common stock, all on a stand alone, combination or tandem basis. The Company historically awarded stock-based compensation in the form of time-vested non-qualified stock options and time-vested restricted share unit awards (“restricted shares”). The grants of options provide for the purchase of shares of the Company’s common stock at the fair market value of the stock on the date the options are granted. Stock options generally vest ratably over periods of three to five years and have a

maximum term of seven years from the date of grant. Restricted shares entitle the holders to receive, at no cost, shares of the Company’s common stock. Restricted shares generally vest over periods of one to five years from the date of grant.

Beginning in 2011, the Company has awarded annual grants under the Long-Term Incentive Program (“LTIP”), which is administered under the Plans. The LTIP is designed in part to align the interests of management with the interests of shareholders, foster retention, create a long-term focus based on sustainable results and provide participants with a target long-term incentive opportunity. LTIP grants in 2021 consisted of a combination of performance-based stock awards with a performance condition metric, performance-based stock awards with a market condition metric and time-vested restricted shares, and in 2020 consisted of a combination of performance-based stock awards and performance-based cash awards (both with a performance condition metric) and time-vested restricted shares. LTIP grants from 2017 through 2019 consisted of a combination of performance-based stock awards and performance-based cash awards, and prior to 2017, nonqualified stock options were in the mix of award types. Stock options granted under the LTIP have a term of seven years and generally vested equally over three years based on continued service. Performance-based stock and cash awards granted under the LTIP are contingent upon the achievement of pre-established long-term performance goals set in advance by the Compensation Committee over a three-year period starting at the beginning of each calendar year. Performance-based stock awards with a market condition metric are contingent on the total shareholder return performance over a three-year period starting at the beginning of each calendar year relative to the KBW Regional Bank Index. These performance awards are granted at a target level, and based on the Company’s achievement of the pre-established long-term goals, the actual payouts can range from 0% to a maximum of 150% of the target award. The awards typically vest in the quarter after the end of the performance period upon certification of the payout by the Compensation Committee of the Board of Directors. Holders of performance-based stock awards are entitled to receive, at no cost, the shares earned based on the achievement of the pre-established long-term goals.

Holders of restricted share awards and performance-based stock awards received under the Plans are not entitled to vote or receive cash dividends (or cash payments equal to the cash dividends) on the underlying common shares until the awards are vested and shares are issued. Shares that are vested but not issuable pursuant to deferred compensation arrangements accrue additional shares based on the value of dividends otherwise paid. Except in limited circumstances, these awards are canceled upon termination of employment without any payment of consideration by the Company.

Stock-based compensation is measured as the fair value of an award on the date of grant, and the measured cost is recognized over the period which the recipient is required to provide service in exchange for the award. The fair value of restricted share and performance-based stock awards with a performance condition metric is determined based on the average of the high and low trading prices on the grant date. The fair value of performance stock awards with a market condition metric is estimated using a Monte Carlo simulation model and the fair value of stock options is estimated using a Black-Scholes option-pricing model. The Monte Carlo simulation model and the Black-Scholes option-pricing model require the input of highly subjective assumptions and are sensitive to changes in the award's expected life and the price volatility of the underlying stock, which can materially affect the fair value estimates. Management periodically reviews and adjusts the assumptions used to calculate the fair value of such awards when granted. No options have been granted since 2016.

Stock based compensation is recognized based upon the number of awards that are ultimately expected to vest, taking into account expected forfeitures. In addition, for performance-based awards with a performance metric, an estimate is made of the number of shares expected to vest as a result of actual performance against the performance criteria in the award to determine the amount of compensation expense to recognize. The estimate is re-evaluated quarterly and total compensation expense is adjusted for any change in estimate in the current period. Stock-based compensation expense recognized in the Consolidated Statements of Income was $3.2 million in the third quarter of 2021 and $1.3 million in the third quarter of 2020, and $9.4 million and $(1.0) million in the 2021 and 2020 year-to-date periods, respectively.

A summary of the Company's stock option activity for the nine months ended September 30, 2021 and September 30, 2020 is presented below:

Stock Options	Common Shares	Weighted Average Strike Price		Remaining Contractual Term (1)	Intrinsic Value (2) (in thousands)
Outstanding at January 1, 2021	520,663	$	42.47
Granted	—	—
Exercised	(245,286)	43.05
Forfeited or canceled	(590)	46.86
Outstanding at September 30, 2021	274,787	$	41.95	1.4	$	10,557
Exercisable at September 30, 2021	273,238	$	41.92	1.4	$	10,506

Stock Options	Common Shares	Weighted Average Strike Price		Remaining Contractual Term (1)	Intrinsic Value (2) (in thousands)
Outstanding at January 1, 2020	755,332	$	42.43
Granted	—	—
Exercised	(104,703)	38.71
Forfeited or canceled	(5,608)	44.34
Outstanding at September 30, 2020	645,021	$	43.02	1.9	$	52
Exercisable at September 30, 2020	637,120	$	43.01	1.8	$	52

(1)Represents the remaining weighted average contractual life in years.

(2)Aggregate intrinsic value represents the total pre-tax intrinsic value (i.e., the difference between the Company's stock price on the last trading day of the quarter and the option exercise price, multiplied by the number of shares) that would have been received by the option holders if they had exercised their options on the last day of the quarter. Options with exercise prices above the stock price on the last trading day of the quarter are excluded from the calculation of intrinsic value. The intrinsic value will change based on the fair market value of the Company's stock.

The aggregate intrinsic value of options exercised during the nine months ended September 30, 2021 and September 30, 2020, was $7.9 million and $2.7 million, respectively. Cash received from option exercises under the Plans for the nine months ended September 30, 2021 and September 30, 2020 was $10.6 million and $4.1 million, respectively.

A summary of the Plans' restricted share activity for the nine months ended September 30, 2021 and September 30, 2020 is presented below:

	Nine months ended September 30, 2021			Nine months ended September 30, 2020
Restricted Shares	Common Shares	Weighted Average Grant-Date Fair Value		Common Shares	Weighted Average Grant-Date Fair Value
Outstanding at January 1	234,794	$	59.02	144,328	$	60.37
Granted	268,429	63.22		113,156	61.32
Vested and issued	(13,120)	72.01		(13,917)	77.77
Forfeited or canceled	(12,624)	63.55		(6,547)	73.71
Outstanding at September 30	477,479	$	60.90	237,020	$	59.43
Vested, but not issuable at September 30	95,215	$	52.39	93,514	$	52.08

A summary of the Plans' performance-based stock award activity, based on the target level of the awards, for the nine months ended September 30, 2021 and September 30, 2020 is presented below:

	Nine months ended September 30, 2021			Nine months ended September 30, 2020
Performance-based Stock	Common Shares	Weighted Average Grant-Date Fair Value		Common Shares	Weighted Average Grant-Date Fair Value
Outstanding at January 1	482,608	$	71.15	465,515	$	74.37
Granted	208,732	58.97		169,864	63.62
Added by performance factor at vesting	—	—		48,831	72.59
Vested and issued	—	—		(180,789)	72.59
Expired, canceled or forfeited	(132,998)	86.51		(18,727)	72.66
Outstanding at September 30	558,342	$	62.94	484,694	$	71.15
Vested, but deferred at September 30	35,040	$	43.53	34,441	$	43.07

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Shareholders' Equity and Earnings Per Share

9 Months Ended

Sep. 30, 2021

Earnings Per Share, Basic and Diluted, Other Disclosures [Abstract]

Shareholders' Equity and Earnings Per Share

Shareholders’ Equity and Earnings Per Share

Series D Preferred Stock

In June 2015, the Company issued and sold 5,000,000 shares of fixed-to-floating non-cumulative perpetual preferred stock, Series D, liquidation preference $25 per share (the “Series D Preferred Stock”) for $125.0 million in a public offering. When, as and if declared, dividends on the Series D Preferred Stock are payable quarterly in arrears at a fixed rate of 6.50% per annum from the original issuance date to, but excluding, July 15, 2025, and from (and including) that date at a floating rate equal to three-month LIBOR plus a spread of 4.06% per annum.

Series E Preferred Stock

In May 2020, the Company issued 11,500 shares of fixed-rate reset non-cumulative perpetual preferred stock, Series E, liquidation preference $25,000 per share (the “Series E Preferred Stock”) as part of a $287.5 million public offering of 11,500,000 depositary shares, each representing a 1/1,000th interest in a share of Series E Preferred Stock. When, as and if declared, dividends on the Series E Preferred Stock are payable quarterly in arrears at a fixed rate of 6.875% per annum starting on October 15, 2020.

Other

At the January 2021 Board of Directors meeting, a quarterly cash dividend of $0.31 per share ($1.24 on an annualized basis) was declared. It was paid on February 25, 2021 to shareholders of record as of February 11, 2021. At the April 2021 Board of Directors meeting, a quarterly cash dividend of $0.31 per share ($1.24 on an annualized basis) was declared. It was paid on May 20, 2021 to shareholders of record as of May 6, 2021. At the July 2021 Board of Directors meeting, a quarterly cash dividend of $0.31 per share ($1.24 on an annualized basis) was declared. It was paid on August 19, 2021 to shareholders of record as of August 5, 2021.

Accumulated Other Comprehensive Income (Loss)

The following tables summarize the components of other comprehensive income (loss), including the related income tax effects, and the related amount reclassified to net income for the periods presented (in thousands).

	Accumulated Unrealized Gains (Losses) on Securities		Accumulated Unrealized Gains (Losses) on Derivative Instruments		Accumulated Foreign Currency Translation Adjustments		Total Accumulated Other Comprehensive Income (Loss)
Balance at July 1, 2021	$	30,189	$	7,720	$	(27,776)	$	10,133
Other comprehensive (loss) income during the period, net of tax, before reclassifications	(10,374)		1,631		(4,650)		(13,393)
Amount reclassified from accumulated other comprehensive income (loss) into net income, net of tax	(256)		4,973		—		4,717
Amount reclassified from accumulated other comprehensive income (loss) related to amortization of unrealized gains on investment securities transferred to held-to-maturity from available-for-sale, net of tax	(40)		—		—		(40)
Net other comprehensive (loss) income during the period, net of tax	$	(10,670)	$	6,604	$	(4,650)	$	(8,716)
Balance at September 30, 2021	$	19,519	$	14,324	$	(32,426)	$	1,417
Balance at January 1, 2021	$	70,737	$	(23,090)	$	(32,265)	$	15,382
Other comprehensive (loss) income during the period, net of tax, before reclassifications	(50,265)		22,493		(161)		(27,933)
Amount reclassified from accumulated other comprehensive income (loss) into net income, net of tax	(837)		14,921		—		14,084
Amount reclassified from accumulated other comprehensive income (loss) related to amortization of unrealized gains on investment securities transferred to held-to-maturity from available-for-sale, net of tax	(116)		—		—		(116)
Net other comprehensive (loss) income during the period, net of tax	$	(51,218)	$	37,414	$	(161)	$	(13,965)
Balance at September 30, 2021	$	19,519	$	14,324	$	(32,426)	$	1,417

Balance at July 1, 2020	$	85,506	$	(43,606)	$	(42,497)	$	(597)
Other comprehensive (loss) income during the period, net of tax, before reclassifications	(10,682)		3,466		2,891		(4,325)
Amount reclassified from accumulated other comprehensive income (loss) into net income, net of tax	(36)		4,157		—		4,121
Amount reclassified from accumulated other comprehensive income (loss) related to amortization of unrealized gains on investment securities transferred to held-to-maturity from available-for-sale, net of tax	(40)		—		—		(40)
Net other comprehensive (loss) income during the period, net of tax	$	(10,758)	$	7,623	$	2,891	$	(244)
Balance at September 30, 2020	$	74,748	$	(35,983)	$	(39,606)	$	(841)
Balance at January 1, 2020	$	14,982	$	(13,141)	$	(36,519)	$	(34,678)
Other comprehensive income (loss) during the period, net of tax, before reclassifications	60,043		(31,796)		(3,087)		25,160
Amount reclassified from accumulated other comprehensive income (loss) into net income, net of tax	(146)		8,954		—		8,808
Amount reclassified from accumulated other comprehensive income (loss) related to amortization of unrealized gains on investment securities transferred to held-to-maturity from available-for-sale, net of tax	(131)		—		—		(131)
Net other comprehensive income (loss) during the period, net of tax	$	59,766	$	(22,842)	$	(3,087)	$	33,837
Balance at September 30, 2020	$	74,748	$	(35,983)	$	(39,606)	$	(841)

	Amount Reclassified from Accumulated Other Comprehensive Income (Loss) for the
Details Regarding the Component of Accumulated Other Comprehensive Income (Loss)	Three Months Ended				Nine Months Ended				Impacted Line on the Consolidated Statements of Income
	September 30,				September 30,
	2021		2020		2021		2020
Accumulated unrealized gains on securities
Gains included in net income	$	350	$	50	$	1,144	$	200	Gains (losses) on investment securities, net
	350		50		1,144		200		Income before taxes
Tax effect	(94)		(14)		(307)		(54)		Income tax expense
Net of tax	$	256	$	36	$	837	$	146	Net income
Accumulated unrealized gains on derivative instruments
Amount reclassified to interest expense on deposits	$	4,947	$	3,884	$	14,898	$	8,806	Interest on deposits
Amount reclassified to interest expense on other borrowings	636		740		1,958		1,458		Interest on other borrowings
Amount reclassified to interest expense on junior subordinated debentures	1,197		1043		3,486		1944		Interest on junior subordinated debentures
	(6,780)		(5,667)		(20,342)		(12,208)		Income before taxes
Tax effect	1,807		1,510		5,421		3,254		Income tax expense
Net of tax	$	(4,973)	$	(4,157)	$	(14,921)	$	(8,954)	Net income

Earnings per Share

The following table shows the computation of basic and diluted earnings per share for the periods indicated:

		Three Months Ended				Nine Months Ended
(In thousands, except per share data)		September 30, 2021		September 30, 2020		September 30, 2021		September 30, 2020
Net income		$	109,137	$	107,315	$	367,394	$	191,786
Less: Preferred stock dividends		6,991		10,286		20,973		14,386
Net income applicable to common shares	(A)	$	102,146	$	97,029	$	346,421	$	177,400
Weighted average common shares outstanding	(B)	57,000		57,597		56,985		57,595
Effect of dilutive potential common shares
Common stock equivalents		753		449		728		469
Weighted average common shares and effect of dilutive potential common shares	(C)	57,753		58,046		57,713		58,064
Net income per common share:
Basic	(A/B)	$	1.79	$	1.68	$	6.08	$	3.08
Diluted	(A/C)	$	1.77	$	1.67	$	6.00	$	3.06

Potentially dilutive common shares can result from stock options, restricted stock unit awards, stock warrants and shares to be issued under the Employee Stock Purchase Plan and the Directors Deferred Fee and Stock Plan, being treated as if they had been either exercised or issued, computed by application of the treasury stock method. While potentially dilutive common shares are typically included in the computation of diluted earnings per share, potentially dilutive common shares are excluded from this computation in periods in which the effect would reduce the loss per share or increase the income per share.

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Subsequent Events	9 Months Ended
	Sep. 30, 2021
Subsequent Events [Abstract]
Subsequent Events	Subsequent EventsOn November 1, 2021 the Company announced that it had agreed to purchase approximately $570 million of loans from the Allstate Corporation. The loan portfolio is comprised of approximately 1,800 loans to Allstate agents nationally.

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Basis of Presentation (Policies)

9 Months Ended

Sep. 30, 2021

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Basis of Accounting

The interim consolidated financial statements of Wintrust Financial Corporation and its subsidiaries (collectively, “Wintrust” or the “Company”) presented herein are unaudited, but in the opinion of management, reflect all necessary adjustments of a normal or recurring nature for a fair presentation of results as of the dates and for the periods covered by the interim consolidated financial statements.

The accompanying interim consolidated financial statements are unaudited and do not include information or footnotes necessary for a complete presentation of financial condition, results of operations or cash flows in accordance with U.S. generally accepted accounting principles (“GAAP”). The interim unaudited consolidated financial statements should be read in conjunction with the consolidated financial statements and notes included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2020 (“2020 Form 10-K”). Operating results reported for the period are not necessarily indicative of the results which may be expected for the entire year. Reclassifications of certain prior period amounts have been made to conform to the current period presentation.

The preparation of the financial statements requires management to make estimates, assumptions and judgments that affect the reported amounts of assets and liabilities. Management believes that the estimates made are reasonable; however, changes in estimates may be required if economic or other conditions develop differently from management’s expectations. Certain policies and accounting principles inherently have a greater reliance on the use of estimates, assumptions and judgments and as such have a greater possibility of producing results that could be materially different than originally reported. Management views critical accounting policies to be those which are highly dependent on subjective or complex judgments, estimates and assumptions, and where changes in those estimates and assumptions could have a significant impact on the financial statements. Management currently views the determination of the allowance for credit losses, including the allowance for loan losses, the allowance for unfunded commitment losses and the allowance for held-to-maturity securities losses, estimations of fair value, the valuations required for impairment testing of goodwill, the valuation and accounting for derivative instruments and income taxes as the accounting areas that require the most subjective and complex judgments, and as such could be the most subject to revision as new information becomes available. Descriptions of the Company’s significant accounting policies are included in Note 1 - “Summary of Significant Accounting Policies” of the 2020 Form 10-K.

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Recent Accounting Developments (Policies)

9 Months Ended

Sep. 30, 2021

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Recent Accounting Developments

Legislation and Regulations Issued as a Result of the COVID-19 Pandemic

On March 27, 2020, the President of the United States signed the Coronavirus Aid, Relief, and Economic Security Act (the "CARES Act" or the "Act"), which provides entities with optional temporary relief from certain accounting and financial reporting requirements under U.S. GAAP.

Section 4013 of the CARES Act allows financial institutions to suspend application of certain current troubled debt restructuring ("TDR") accounting guidance under Accounting Standards Codification (“ASC”) 310-40 for loan modifications related to the COVID-19 pandemic made between March 1, 2020 and the earlier of December 31, 2020 or 60 days after the end of the COVID-19 national emergency, provided certain criteria are met. This relief can be applied to loan modifications for borrowers that were not more than 30 days past due as of December 31, 2019 and to loan modifications that defer or delay the payment of principal or interest, or change the interest rate on the loan. On December 27, 2020, the Consolidated Appropriations Act, 2021 (the "CAA"), which combined stimulus relief for the COVID-19 pandemic with an omnibus spending bill for the 2021 fiscal year, was signed by the President of the United States. The CAA included extension of TDR accounting relief provided under the CARES Act to January 1, 2022. The Company chose to apply this relief to eligible loan modifications.

The business tax provisions of the Act include temporary changes to income and non-income based tax laws, including immediate recovery of qualified improvement property costs and acceleration of Alternative Minimum Tax (AMT) credits. These provisions did not have a material impact on the Company's deferred taxes.

In April 2020, federal and state banking regulators issued the Interagency Statement on Loan Modifications and Reporting for Financial Institutions Working with Customers Affected by the Coronavirus to provide separate relief, specifically indicating that if a modification is either short-term (e.g., six months) or mandated by a federal or state government in response to the COVID-19 pandemic, the borrower is not considered to be experiencing financial difficulty and thus does not represent a TDR under ASC 310-40. Additionally, in August 2020, regulators issued the Joint Statement on Additional Loan Accommodations

Related to the COVID-19 pandemic to provide prudent risk management and consumer protection principles for financial institutions to consider while working with borrowers as loans near the end of initial loan accommodation periods applicable during the COVID-19 pandemic. The Company continues to prudently work with borrowers negatively impacted by the COVID-19 pandemic while managing credit risks and recognizing appropriate allowance for credit losses on its loan portfolio.

Reference Rate Reform

In March 2020, the FASB issued ASU No. 2020-04, “Reference Rate Reform (Topic 848),” which provides temporary optional relief for contracts modified as a result of reference rate reform meeting certain modification criteria, generally allowing an entity to account for contract modifications occurring due to reference rate reform as an event that does not require contract remeasurement or reassessment of a previous accounting determination at the modification date. The guidance also includes temporary optional expedients intended to provide relief from various hedge effectiveness requirements for hedging relationships affected by reference rate reform, provided certain criteria are met, and allows a one-time election to sell or transfer to either available-for-sale or trading any held-to-maturity ("HTM") debt securities that refer to an interest rate affected by reference rate reform and were classified as HTM prior to January 1, 2020. Additionally, in January 2021, the FASB issued ASU No. 2021-01, “Reference Rate Reform (Topic 848): Scope,” which provided additional clarification that certain optional expedients and exceptions noted above apply to derivative instruments that use an interest rate for margining, discounting or contract price alignment that is modified as a result of reference rate reform. This guidance was effective upon issuance and can be applied prospectively, with certain exceptions, through December 31, 2022.

In November 2020, federal and state banking regulators issued the “Interagency Policy Statement on Reference Rates for Loans" to reiterate that a specific replacement rate for loans impacted by reference rate reform has not been endorsed and entities may utilize any replacement reference rate determined to be appropriate based on its funding model and customer needs. As discussed in the “Interagency Policy Statement on Reference Rates for Loans," fallback language should be included in lending contracts to provide for use of a robust fallback rate if the initial reference rate is discontinued. Additionally, federal banking regulators issued the "Interagency Statement on LIBOR Transition" acknowledging that the administrator of USD London Interbank Offered Rate (LIBOR) benchmarks has announced it will consult on its intention to cease the publication of the one week and two month USD LIBOR settings immediately following the LIBOR publication on December 31, 2021, and the remaining USD LIBOR settings immediately following the LIBOR publication on June 30, 2023. On March 5, 2021, the administrator of USD LIBOR benchmarks confirmed these dates and will cease publication of USD LIBOR tenors accordingly. As discussed in the "Interagency Statement on LIBOR Transition," regulators encouraged banks to cease entering into new contracts that use USD LIBOR as a reference rate as soon as practicable and in any event by December 31, 2021, in order to facilitate an orderly, safe and sound LIBOR transition. The Company continues to monitor efforts and evaluate the impact of reference rate reform on its consolidated financial statements.

Income Taxes

In December 2019, the FASB issued ASU No. 2019-12, "Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes," to simplify the accounting for income taxes by removing certain exceptions to the general principles of ASC 740, "Income Taxes". The guidance also improved consistent application by clarifying and amending existing guidance from ASC 740. The Company adopted ASU No. 2019-12 as of January 1, 2021. Adoption of this standard did not have a material impact on the Company’s consolidated financial statements.

Investment Securities

In January 2020, the FASB issued ASU No. 2020-01, “Clarifying the Interactions Between Investments-Equity Securities (ASC Topic 321), Investments-Equity Method and Joint Ventures (ASC Topic 323), and Derivatives and Hedging (ASC Topic 815),” which amended ASC 323, Investments-Equity Method & Joint Ventures to clarify that an entity should consider observable transactions that require it to either apply or discontinue using the equity method of accounting for purposes of applying the measurement alternative in accordance with ASC 321, Investments-Equity Securities, immediately before applying or discontinuing the equity method under ASC 323.

The guidance also amended ASC 815, Derivatives & Hedging, to clarify that, when determining the accounting for certain nonderivative forward contracts and purchased options, an entity should not consider how to account for the resulting investments upon eventual settlement or exercise, and that an entity should evaluate the remaining characteristics in accordance with ASC 815 to determine the accounting for those forward contracts and purchased options.

The Company adopted ASU No. 2020-01 as of January 1, 2021 under a prospective approach. Adoption of this standard did not have a material impact on the Company’s consolidated financial statements.

Codification Improvements

In October 2020, the FASB issued ASU No. 2020-08, “Codification Improvements to Subtopic 310-20, Receivables — Nonrefundable Fees and Other Costs,” clarifying that, for each reporting period, an entity should reevaluate whether a callable debt security with multiple call dates is within the scope of ASC 310-20, which was amended to require amortization of any premium to the next call date. The next call date was defined as the first date when a call option at a specified price becomes exercisable. The Company adopted ASU No. 2020-08 as of January 1, 2021 under a prospective approach. Adoption of this standard did not have a material impact on the Company’s consolidated financial statements.

Additionally, the FASB issued ASU No. 2020-10, “Codification Improvements,” in October 2020 to improve the consistency of the Codification by adding or moving disclosure-specific guidance contained in the Other Presentation Matters section to the appropriate Disclosure Section for various Topics. The Company adopted ASU No. 2020-10 as of January 1, 2021 under a retrospective approach. Adoption of this standard did not have a material impact on the Company’s consolidated financial statements.

Financial Disclosures about Acquired and Disposed Businesses

In May 2020, the SEC issued a final rule on “Amendments to Financial Disclosures about Acquired and Disposed Businesses,” which provides for specific disclosure changes, including revising the investment and income significance tests, conforming the significance threshold and tests for a disposed business to those used for an acquired business, permitting abbreviated financial statements for certain acquisitions of a component of an entity, and reducing the maximum number of years for which financial statements are required for acquired businesses from three years to two years, among other amendments. This guidance was effective on January 1, 2021. The Company does not expect this to have a material impact on the Company’s consolidated financial statements.

In August 2021, the FASB issued ASU No. 2021-06, "Presentation of Financial Statements (Topic 206), Financial Services - Depository and Lending (Topic 942), and Financial Services - Investment Companies (Topic 946)" which amends certain SEC paragraphs in the codification in response to SEC final rule over Financial Disclosures about Acquired and Disposed Businesses by amending ASC Topic 946 by providing additional guidance on financial statement requirements related to Regulation S-X Rule 6-11, Financial Statements of Funds Acquired or to be Acquired. This guidance was effective upon issuance on August 9, 2021. Adoption of this standard did not have a material impact on the Company’s consolidated financial statements.

Debt

In August 2020, the FASB issued ASU No. 2020-06, “Debt-Debt with Conversion and Other Options (Subtopic 470-20) and Derivatives and Hedging-Contracts in Entity’s Own Equity (Subtopic 815-40): Accounting for Convertible Instruments and Contracts in an Entity’s Own Equity,” which includes provisions for reducing the number of accounting models used in accounting for convertible debt instruments and convertible preferred stock, amending derivatives and earnings-per-share (EPS) guidance and expanding disclosures for convertible debt instruments and EPS. This guidance is effective for fiscal years beginning after December 15, 2021, including interim periods therein, and is to be applied under either a full or modified retrospective approach. Early adoption is permitted. The Company does not expect this guidance to have a material impact on the Company’s consolidated financial statements.

Statistical Disclosures for Bank and Savings and Loan Registrants

In September 2020, the SEC issued a final rule on the “Update of Statistical Disclosures for Bank and Savings and Loan Registrants,” which adopts rules to update statistical disclosure requirements for banking registrants. The amendments update and expand the disclosures that registrants are required to provide, codify certain Industry Guide 3 disclosure items and eliminate other Guide 3 disclosures that overlap with SEC rules, GAAP or IFRS standards. In addition, Guide 3 is being rescinded and replaced with a new subpart of Regulation S-K. The SEC ruling is applicable to fiscal years beginning after December 15, 2021 and early compliance is permitted. The Company does not expect this guidance to have a material impact on the Company’s consolidated financial statements.

In August 2021, the FASB issued ASU No. 2021-06, "Presentation of Financial Statements (Topic 206), Financial Services - Depository and Lending (Topic 942), and Financial Services - Investment Companies (Topic 946)" which amends certain SEC paragraphs in the codification in response to the SEC final rule on the Update of Statistical Disclosures for Banks and Savings and Loan Registrants by removing the disclosure requirements for various categories of loans contained in ASC

Topic 942. This guidance was effective upon issuance on August 9, 2021. Adoption of this standard did not have a material impact on the Company’s consolidated financial statements.

Issuer’s Accounting for Modifications or Exchanges of Freestanding Equity-Classified Written Call Options

In May 2021, the FASB issued ASU No. 2021-04, “Earnings Per Share (Topic 260), Debt—Modifications and Extinguishments (Subtopic 470-50), Compensation—Stock Compensation (Topic 718), and Derivatives and Hedging—Contracts in Entity’s Own Equity (Subtopic 815-40): Issuer’s Accounting for Certain Modifications or Exchanges of Freestanding Equity-Classified Written Call Options,” which requires an issuer to account for any modification or exchange of the terms or conditions of a freestanding written call option classified as equity, such as warrants, that remains classified as equity as an exchange of the original instrument for a new instrument and provides a framework for measuring and recognizing the effect of the exchange as an adjustment to either equity or expense. This guidance is effective for fiscal years beginning after December 15, 2021, including interim periods therein, and is to be applied prospectively. Early adoption is permitted. The Company does not expect this guidance to have a material impact on the Company’s consolidated financial statements.

Leases - Certain Leases with Variable Lease Payments

In July 2021, the FASB issued ASU No. 2021-05, "Leases (Topic 842): Lessors – Certain Leases with Variable Lease Payments" which amends lessor lease classification requirements to allow leases with variable lease payments that are not dependent on a reference index or rate to be classified and accounted for as an operating lease, provided the lease would have been classified as a sales-type or direct financing lease and the lessor would have otherwise recognized a day-one loss. This guidance is effective for fiscal years beginning after December 15, 2021, including interim periods therein, with early adoption permitted. As the Company has adopted ASC Topic 842, this guidance is to be applied retrospectively to leases that commenced or were modified after adoption or prospectively to leases that will commence or be modified after the application of these amendments. The Company does not expect this guidance to have a material impact on the Company's consolidated financial statements.

Cash and Cash Equivalents

For purposes of the Consolidated Statements of Cash Flows, the Company considers cash and cash equivalents to include cash on hand, cash items in the process of collection, non-interest bearing amounts due from correspondent banks, federal funds sold and securities purchased under resale agreements with original maturities of three months or less. These items are included within the Company’s Consolidated Statements of Condition as cash and due from banks, and federal funds sold and securities purchased under resale agreements.

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Investment Securities (Tables)

9 Months Ended

Sep. 30, 2021

Investments, Debt and Equity Securities [Abstract]

Marketable Securities

The following tables are a summary of the investment securities portfolios as of the dates shown:

	September 30, 2021
(Dollars in thousands)	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value
Available-for-sale securities
U.S. Treasury	$	6,000	$	—	$	—	$	6,000
U.S. Government agencies	50,163		3,112		—		53,275
Municipal	170,612		4,202		(214)		174,600
Corporate notes:
Financial issuers	98,848		500		(1,241)		98,107
Other	1,000		11		—		1,011
Mortgage-backed: (1)
Mortgage-backed securities	1,913,139		44,931		(25,434)		1,932,636
Collateralized mortgage obligations	107,657		192		—		107,849
Total available-for-sale securities	$	2,347,419	$	52,948	$	(26,889)	$	2,373,478
Held-to-maturity securities
U.S. Government agencies	$	176,143	$	482	$	(2,878)	$	173,747
Municipal	190,662		10,321		(334)		200,649
Mortgage-backed securities	2,318,309		1,924		(46,102)		2,274,131
Corporate notes	51,691		—		(738)		50,953
Total held-to-maturity securities	$	2,736,805	$	12,727	$	(50,052)	$	2,699,480
Less: Allowance for credit losses	(83)
Held-to-maturity securities, net of allowance for credit losses	$	2,736,722
Equity securities with readily determinable fair value	$	83,909	$	5,678	$	(1,394)	$	88,193

(1)Consisting entirely of residential mortgage-backed securities, none of which are subprime.

	December 31, 2020
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value
(Dollars in thousands)
Available-for-sale securities
U.S. Treasury	$	304,956	$	15	$	—	$	304,971
U.S. Government agencies	80,074		4,439		—		84,513
Municipal	141,244		5,707		(41)		146,910
Corporate notes:
Financial issuers	91,786		1,363		(2,764)		90,385
Other	1,000		20		—		1,020
Mortgage-backed: (1)
Mortgage-backed securities	2,330,332		86,721		(15)		2,417,038
Collateralized mortgage obligations	10,689		313		—		11,002
Total available-for-sale securities	$	2,960,081	$	98,578	$	(2,820)	$	3,055,839
Held-to-maturity securities
U.S. Government agencies	$	177,959	$	2,552	$	—	$	180,511
Municipal	200,707		12,232		(214)		212,725
Mortgage-backed securities	200,531		—		—		200,531
Total held-to-maturity securities	$	579,197	$	14,784	$	(214)	$	593,767
Less: Allowance for credit losses	(59)
Held-to-maturity securities, net of allowance for credit losses	$	579,138
Equity securities with readily determinable fair value	$	87,618	$	3,674	$	(430)	$	90,862

(1)Consisting entirely of residential mortgage-backed securities, none of which are subprime.

	September 30, 2020
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value
(Dollars in thousands)
Available-for-sale securities
U.S. Treasury	$	279,903	$	206	$	(1)	$	280,108
U.S. Government agencies	172,951		5,715		—		178,666
Municipal	150,333		3,996		(134)		154,195
Corporate notes:
Financial issuers	106,764		455		(4,110)		103,109
Other	1,000		26		—		1,026
Mortgage-backed: (1)
Mortgage-backed securities	2,121,423		94,543		(11)		2,215,955
Collateralized mortgage obligations	13,036		365		(1)		13,400
Total available-for-sale securities	$	2,845,410	$	105,306	$	(4,257)	$	2,946,459
Held-to-maturity securities
U.S. Government agencies	$	349,415	$	4,396	$	—	$	353,811
Municipal	$	210,915	11,339		(118)		222,136
Total held-to-maturity securities	$	560,330	$	15,735	$	(118)	$	575,947
Less: Allowance for credit losses	(63)
Held-to-maturity securities, net of allowance for credit losses	$	560,267
Equity securities with readily determinable fair value	$	53,250	$	1,537	$	(389)	$	54,398

(1)Consisting entirely of residential mortgage-backed securities, none of which are subprime.

Investment Securities, Continuous Unrealized Loss Position, Fair Value

The following table presents the portion of the Company’s available-for-sale investment securities portfolios that have gross unrealized losses, reflecting the length of time that individual securities have been in a continuous unrealized loss position at September 30, 2021:

	Continuous unrealized losses existing for less than 12 months				Continuous unrealized losses existing for greater than 12 months				Total
(Dollars in thousands)	Fair Value		Unrealized Losses		Fair Value		Unrealized Losses		Fair Value		Unrealized Losses
Available-for-sale securities
U.S. Treasury	$	—	$	—	$	—	$	—	$	—	$	—
U.S. Government agencies	—		—		—		—		—		—
Municipal	54,995		(210)		111		(4)		55,106		(214)
Corporate notes:
Financial issuers	24,778		(223)		45,975		(1,018)		70,753		(1,241)
Other	—		—		—		—		—		—
Mortgage-backed:
Mortgage-backed securities	850,161		(25,434)		—		—		850,161		(25,434)
Collateralized mortgage obligations	—		—		—		—		—		—
Total available-for-sale securities	$	929,934	$	(25,867)	$	46,086	$	(1,022)	$	976,020	$	(26,889)

Schedule of Gross Gains and Losses on Investment Securities

The following table provides information as to the amount of gross gains and losses, adjustments and impairment on investment securities recognized in earnings and proceeds received through the sale or call of investment securities:

	Three months ended September 30,				Nine months ended September 30,
(Dollars in thousands)	2021		2020		2021		2020
Realized gains on investment securities	$	355	$	78	$	1,184	$	725
Realized losses on investment securities	(5)		(28)		(40)		(525)
Net realized gains on investment securities	350		50		1,144		200
Unrealized gains on equity securities with readily determinable fair value	1		471		2,627		2,118
Unrealized losses on equity securities with readily determinable fair value	(634)		(110)		(1,585)		(3,766)
Net unrealized (losses) gains on equity securities with readily determinable fair value	(633)		361		1,042		(1,648)
Upward adjustments of equity securities without readily determinable fair values	—		—		—		393
Downward adjustments of equity securities without readily determinable fair values	—		—		—		—
Impairment of equity securities without readily determinable fair values	(2,148)		—		(2,178)		(2,085)
Adjustment and impairment, net, of equity securities without readily determinable fair values	(2,148)		—		(2,178)		(1,692)
(Losses) gains on investment securities, net	$	(2,431)	$	411	$	8	$	(3,140)
Proceeds from sales of available-for-sale securities(1)	$	189,851	$	—	$	192,227	$	502,676
Proceeds from sales of equity securities with readily determinable fair value	3,500		2,500		9,759		6,530
Proceeds from sales and capital distributions of equity securities without readily determinable fair value	1,330		1,247		2,467		1,691

(1)Includes proceeds from available-for-sale securities sold in accordance with written covered call options sold to a third party.

Investments Classified by Contractual Maturity Date

The amortized cost and fair value of available-for-sale and held-to-maturity investment securities as of September 30, 2021, December 31, 2020 and September 30, 2020, by contractual maturity, are shown in the following table. Contractual maturities may differ from actual maturities as borrowers may have the right to call or repay obligations with or without call or prepayment penalties. Mortgage-backed securities are not included in the maturity categories in the following maturity summary as actual maturities may differ from contractual maturities because the underlying mortgages may be called or prepaid without penalties:

	September 30, 2021				December 31, 2020				September 30, 2020
(Dollars in thousands)	Amortized Cost		Fair Value		Amortized Cost		Fair Value		Amortized Cost		Fair Value
Available-for-sale securities
Due in one year or less	$	45,459	$	45,549	$	343,601	$	343,846	$	338,702	$	338,954
Due in one to five years	92,457		94,134		67,901		70,334		76,843		78,843
Due in five to ten years	121,099		121,650		111,886		112,178		108,688		105,968
Due after ten years	67,608		71,660		95,672		101,441		186,718		193,339
Mortgage-backed	2,020,796		2,040,485		2,341,021		2,428,040		2,134,459		2,229,355
Total available-for-sale securities	$	2,347,419	$	2,373,478	$	2,960,081	$	3,055,839	$	2,845,410	$	2,946,459
Held-to-maturity securities
Due in one year or less	$	5,466	$	5,493	$	7,138	$	7,186	$	6,911	$	6,942
Due in one to five years	75,724		76,173		22,217		23,068		21,392		21,999
Due in five to ten years	150,908		157,282		150,621		159,293		144,468		151,175
Due after ten years	186,398		186,401		198,690		203,689		387,559		395,831
Mortgage-backed	2,318,309		2,274,131		200,531		200,531		—		—
Total held-to-maturity securities	$	2,736,805	$	2,699,480	$	579,197	$	593,767	$	560,330	$	575,947
Less: Allowance for credit losses	(83)				(59)				(63)
Held-to-maturity securities, net of allowance for credit losses	$	2,736,722			$	579,138			$	560,267

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Loans (Tables)

9 Months Ended

Sep. 30, 2021

Loans and Leases Receivable Disclosure [Abstract]

Summary of Loan Portfolio

The following table shows the Company’s loan portfolio by category as of the dates shown:

	September 30,			December 31,			September 30,
(Dollars in thousands)	2021			2020			2020
Balance:
Commercial	$	11,187,972		$	11,955,967		$	12,276,999
Commercial real estate	8,885,714			8,494,132			8,423,142
Home equity	347,662			425,263			446,274
Residential real estate	1,547,736			1,259,598			1,384,810
Premium finance receivables
Commercial insurance	4,616,977			4,054,489			4,060,144
Life insurance	6,655,453			5,857,436			5,488,832
Consumer and other	22,529			32,188			55,354
Total loans, net of unearned income	$	33,264,043		$	32,079,073		$	32,135,555
Mix:
Commercial	33		%	37		%	39		%
Commercial real estate	27			26			26
Home equity	1			1			1
Residential real estate	5			5			4
Premium finance receivables
Commercial insurance	14			13			13
Life insurance	20			18			17
Consumer and other	0			0			0
Total loans, net of unearned income	100		%	100		%	100		%

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Allowance for Credit Losses (Tables)

9 Months Ended

Sep. 30, 2021

Credit Loss [Abstract]

Aging of the Loan Portfolio

The tables below show the aging of the Company’s loan portfolio by the segmentation noted above at September 30, 2021, December 31, 2020 and September 30, 2020:

As of September 30, 2021			90+ days and still accruing		60-89 days past due		30-59 days past due
(In thousands)	Nonaccrual								Current		Total Loans
Loan Balances (includes PCD):
Commercial
Commercial, industrial and other, excluding PPP loans	$	26,468	$	—	$	9,768	$	24,086	$	10,045,662	$	10,105,984
Commercial PPP loans	—		—		—		1,138		1,080,850		1,081,988
Commercial real estate
Construction and development	1,030		—		—		12,631		1,330,054		1,343,715
Non-construction	22,676		—		5,395		67,187		7,446,741		7,541,999
Home equity	3,449		164		340		867		342,842		347,662
Residential real estate	22,633		—		1,540		1,076		1,522,487		1,547,736
Premium finance receivables
Commercial insurance loans	7,300		5,811		10,642		14,614		4,578,610		4,616,977
Life insurance loans	—		—		5,162		7,040		6,643,251		6,655,453
Consumer and other	384		126		16		125		21,878		22,529
Total loans, net of unearned income	$	83,940	$	6,101	$	32,863	$	128,764	$	33,012,375	$	33,264,043

As of December 31, 2020			90+ days and still accruing		60-89 days past due		30-59 days past due
(In thousands)	Nonaccrual								Current		Total Loans
Loan Balances (includes PCD):
Commercial
Commercial, industrial and other, excluding PPP loans	$	21,743	$	307	$	6,900	$	44,345	$	9,166,751	$	9,240,046
Commercial PPP loans	—		—		—		36		2,715,885		2,715,921
Commercial real estate
Construction and development	5,633		—		—		5,344		1,360,825		1,371,802
Non-construction	40,474		—		5,178		26,772		7,049,906		7,122,330
Home equity	6,529		—		47		637		418,050		425,263
Residential real estate	26,071		—		1,635		12,584		1,219,308		1,259,598
Premium finance receivables
Commercial insurance loans	13,264		12,792		6,798		18,809		4,002,826		4,054,489
Life insurance loans	—		—		21,003		30,465		5,805,968		5,857,436
Consumer and other	436		264		24		136		31,328		32,188
Total loans, net of unearned income	$	114,150	$	13,363	$	41,585	$	139,128	$	31,770,847	$	32,079,073

As of September 30, 2020			90+ days and still accruing		60-89 days past due		30-59 days past due
(In thousands)	Nonaccrual								Current		Total Loans
Loan Balances (includes PCD):
Commercial
Commercial, industrial and other, excluding PPP loans	$	42,036	$	—	$	2,168	$	48,271	$	8,805,511	$	8,897,986
Commercial PPP loans	—		—		—		—		3,379,013		3,379,013
Commercial real estate
Construction and development	10,980		—		—		12,150		1,310,019		1,333,149
Non-construction	57,835		—		8,299		41,312		6,982,547		7,089,993
Home equity	6,329		—		70		1,148		438,727		446,274
Residential real estate	22,069		—		814		2,443		1,359,484		1,384,810
Premium finance receivables
Commercial insurance loans	21,080		12,177		7,495		18,839		4,000,553		4,060,144
Life insurance loans	—		—		30,791		61,893		5,396,148		5,488,832
Consumer and other	422		175		273		493		53,991		55,354
Total loans, net of unearned income	$	160,751	$	12,352	$	49,910	$	186,549	$	31,725,993	$	32,135,555

Loan Portfolio by Credit Quality Indicator

The table below shows the Company’s loan portfolio by credit quality indicator and year of origination at September 30, 2021:

As of September 30, 2021	Year of Origination														Revolving		Total
(In thousands)	2021		2020		2019		2018		2017		Prior		Revolving		to Term		Loans
Loan Balances:
Commercial, industrial and other
Pass	$	1,876,457	$	1,567,410	$	1,005,156	$	711,177	$	481,140	$	620,202	$	3,301,541	$	10,236	$	9,573,319
Special mention	18,468		52,692		67,528		42,470		31,785		22,358		106,454		5,841		347,596
Substandard accrual	17,805		5,246		21,901		33,886		8,712		41,590		28,641		820		158,601
Substandard nonaccrual/doubtful	5,227		3,803		5,008		4,206		2,189		5,503		532		—		26,468
Total commercial, industrial and other	$	1,917,957	$	1,629,151	$	1,099,593	$	791,739	$	523,826	$	689,653	$	3,437,168	$	16,897	$	10,105,984
Commercial PPP
Pass	$	909,139	$	171,213	$	—	$	—	$	—	$	—	$	—	$	—	$	1,080,352
Special mention	—		1,356		—		—		—		—		—		—		1,356
Substandard accrual	—		280		—		—		—		—		—		—		280
Substandard nonaccrual/doubtful	—		—		—		—		—		—		—		—		—
Total commercial PPP	$	909,139	$	172,849	$	—	$	—	$	—	$	—	$	—	$	—	$	1,081,988
Construction and development
Pass	$	214,644	$	403,619	$	326,654	$	131,600	$	79,752	$	88,452	$	24,382	$	2,688	$	1,271,791
Special mention	282		8,475		12,144		17,685		23,435		3,234		—		—		65,255
Substandard accrual	—		—		316		2,558		2,132		478		155		—		5,639
Substandard nonaccrual/doubtful	—		—		—		—		—		1,030		—		—		1,030
Total construction and development	$	214,926	$	412,094	$	339,114	$	151,843	$	105,319	$	93,194	$	24,537	$	2,688	$	1,343,715
Non-construction
Pass	$	1,039,349	$	1,215,988	$	997,258	$	796,708	$	752,951	$	2,053,618	$	185,418	$	4,979	$	7,046,269
Special mention	3,517		10,307		51,203		61,392		44,193		155,150		—		—		325,762
Substandard accrual	—		1,960		33,544		20,725		21,345		69,718		—		—		147,292

Substandard nonaccrual/doubtful	—		—		—		112		169		22,395		—		—		22,676
Total non-construction	$	1,042,866	$	1,228,255	$	1,082,005	$	878,937	$	818,658	$	2,300,881	$	185,418	$	4,979	$	7,541,999
Home equity
Pass	$	8	$	—	$	—	$	—	$	28	$	7,050	$	319,725	$	—	$	326,811
Special mention	—		—		—		—		—		614		5,355		242		6,211
Substandard accrual	—		—		—		184		67		9,341		949		650		11,191
Substandard nonaccrual/doubtful	—		—		—		47		81		2,794		527		—		3,449
Total home equity	$	8	$	—	$	—	$	231	$	176	$	19,799	$	326,556	$	892	$	347,662
Residential real estate
Pass	$	672,993	$	299,739	$	193,715	$	79,703	$	87,361	$	162,230	$	—	$	—	$	1,495,741
Special mention	884		269		459		2,123		1,848		8,331		—		—		13,914
Substandard accrual	1,129		2,234		731		887		2,033		8,434		—		—		15,448
Substandard nonaccrual/doubtful	—		994		1,554		859		4,807		14,419		—		—		22,633
Total residential real estate	$	675,006	$	303,236	$	196,459	$	83,572	$	96,049	$	193,414	$	—	$	—	$	1,547,736
Premium finance receivables - commercial
Pass	$	4,453,036	$	106,802	$	13,179	$	1,429	$	49	$	—	$	—	$	—	$	4,574,495
Special mention	31,671		1,693		9		—		1		—		—		—		33,374
Substandard accrual	1,153		608		2		45		—		—		—		—		1,808
Substandard nonaccrual/doubtful	4,620		2,601		67		12		—		—		—		—		7,300
Total premium finance receivables - commercial	$	4,490,480	$	111,704	$	13,257	$	1,486	$	50	$	—	$	—	$	—	$	4,616,977
Premium finance receivables - life
Pass	$	340,318	$	782,936	$	734,280	$	673,416	$	699,250	$	3,424,672	$	—	$	—	$	6,654,872
Special mention	—		—		—		—		581		—		—		—		581
Substandard accrual	—		—		—		—		—		—		—		—		—
Substandard nonaccrual/doubtful	—		—		—		—		—		—		—		—		—
Total premium finance receivables - life	$	340,318	$	782,936	$	734,280	$	673,416	$	699,831	$	3,424,672	$	—	$	—	$	6,655,453
Consumer and other
Pass	$	2,769	$	1,120	$	1,254	$	1,230	$	84	$	4,595	$	10,647	$	—	$	21,699
Special mention	—		4		17		—		80		82		6		—		189
Substandard accrual	—		3		1		—		—		250		3		—		257
Substandard nonaccrual/doubtful	—		4		—		100		—		280		—		—		384
Total consumer and other	$	2,769	$	1,131	$	1,272	$	1,330	$	164	$	5,207	$	10,656	$	—	$	22,529
Total loans (1)
Pass	$	9,508,713	$	4,548,827	$	3,271,496	$	2,395,263	$	2,100,615	$	6,360,819	$	3,841,713	$	17,903	$	32,045,349
Special mention	54,822		74,796		131,360		123,670		101,923		189,769		111,815		6,083		794,238
Substandard accrual	20,087		10,331		56,495		58,285		34,289		129,811		29,748		1,470		340,516
Substandard nonaccrual/doubtful	9,847		7,402		6,629		5,336		7,246		46,421		1,059		—		83,940
Total loans	$	9,593,469	$	4,641,356	$	3,465,980	$	2,582,554	$	2,244,073	$	6,726,820	$	3,984,335	$	25,456	$	33,264,043

(1)Includes $37.5 million of loans with COVID-19 related modifications that migrated from pass as of March 1, 2020 to special mention or substandard accrual as of September 30, 2021. These loans were further qualitatively evaluated as a part of the measurement of the allowance for credit losses as of September 30, 2021.

Held-to-Maturity Debt Securities by Credit Quality Indicator

For purposes of the table below, the Company has converted any issuer rating from an NRSRO into the Company’s internal ratings based on Investment Policy and review by the Company’s management.

As of September 30, 2021	Year of Origination												Total
(In thousands)	2021		2020		2019		2018		2017		Prior		Balance
Amortized Cost Balances:
U.S. government agencies
1-4 internal grade	$	97,790	$	25,000	$	—	$	50,000	$	—	$	3,353	$	176,143
5-7 internal grade	—		—		—		—		—		—		—
8-10 internal grade	—		—		—		—		—		—		—
Total U.S. government agencies	$	97,790	$	25,000	$	—	$	50,000	$	—	$	3,353	$	176,143
Municipal
1-4 internal grade	$	1,371	$	—	$	161	$	7,508	$	43,358	$	138,264	$	190,662
5-7 internal grade	—		—		—		—		—		—		—
8-10 internal grade	—		—		—		—		—		—		—
Total municipal	$	1,371	$	—	$	161	$	7,508	$	43,358	$	138,264	$	190,662
Mortgage-backed securities
1-4 internal grade	$	2,318,309	$	—	$	—	$	—	$	—	$	—	$	2,318,309
5-7 internal grade	—		—		—		—		—		—		—
8-10 internal grade	—		—		—		—		—		—		—
Total mortgage-backed securities	$	2,318,309	$	—	$	—	$	—	$	—	$	—	$	2,318,309
Corporate notes
1-4 internal grade	$	—	$	13,578	$	7,419	$	3,285	$	3,237	$	24,172	$	51,691
5-7 internal grade	—		—		—		—		—		—		—
8-10 internal grade	—		—		—		—		—		—		—
Total corporate notes	$	—	$	13,578	$	7,419	$	3,285	$	3,237	$	24,172	$	51,691
Total held-to-maturity securities													$	2,736,805
Less: Allowance for credit losses													(83)
Held-to-maturity securities, net of allowance for credit losses													$	2,736,722

Components of Allowance for Credit Losses

As significant judgment is required, the review of the appropriateness of the allowance for credit losses is performed quarterly by various committees with participation by the Company's executive management.

	September 30,		December 31,		September 30,
(In thousands)	2021		2020		2020
Allowance for loan losses	$	248,612	$	319,374	$	325,959
Allowance for unfunded lending-related commitments losses	47,443		60,536		62,949
Allowance for loan losses and unfunded lending-related commitments losses	296,055		379,910		388,908
Allowance for held-to-maturity securities losses	83		59		63
Allowance for credit losses	$	296,138	$	379,969	$	388,971

Summary of Activity in the Allowance for Credit Losses

A summary of activity in the allowance for credit losses, specifically for the loan portfolio (i.e. allowance for loan losses and allowance for unfunded commitment losses), for the three and nine months ended September 30, 2021 and 2020 is as follows.

Three months ended September 30, 2021			Commercial Real Estate		Home  Equity		Residential Real Estate		Premium Finance Receivables		Consumer and Other		Total Loans
(In thousands)	Commercial
Allowance for credit losses at beginning of period	$	98,507	$	158,522	$	11,207	$	15,684	$	19,899	$	212	$	304,031
Other adjustments			—		—		—		(65)		—		(65)
Charge-offs	(1,352)		(406)		(59)		(10)		(1,390)		(112)		(3,329)
Recoveries	816		373		313		5		1,728		92		3,327
Provision for credit losses	11,811		(18,454)		(522)		593		(1,597)		260		(7,909)
Allowance for credit losses at period end	$	109,782	$	140,035	$	10,939	$	16,272	$	18,575	$	452	$	296,055
Individually measured	$	8,222	$	1,308	$	221	$	940	$	—	$	68	$	10,759
Collectively measured	101,560		138,727		10,718		15,332		18,575		384		285,296
Loans at period end
Individually measured	$	31,001	$	32,091	$	16,486	$	28,966	$	—	$	467	$	109,011
Collectively measured	11,156,971		8,853,623		331,176		1,487,791		11,272,430		22,062		33,124,053
Loans held at fair value	—		—		—		30,979		—		—		30,979

Three months ended September 30, 2020	Commercial		Commercial Real Estate		Home  Equity		Residential Real Estate		Premium Finance Receivables		Consumer and Other		Total Loans
(In thousands)
Allowance for credit losses at beginning of period	$	133,597	$	197,126	$	12,189	$	11,915	$	17,592	$	690	$	373,109
Other adjustments	—		—		—		—		55		—		55
Charge-offs	(5,270)		(1,529)		(138)		(83)		(4,640)		(103)		(11,763)
Recoveries	428		175		111		25		1,720		20		2,479
Provision for credit losses	(15,861)		38,238		(485)		(67)		3,129		74		25,028
Allowance for credit losses at period end	$	112,894	$	234,010	$	11,677	$	11,790	$	17,856	$	681	$	388,908
Individually measured	$	10,642	$	4,741	$	196	$	680	$	—	$	108	$	16,367
Collectively measured	102,252		229,269		11,481		11,110		17,856		573		372,541
Loans at period end
Individually measured	$	49,900	$	79,661	$	22,962	$	30,596	$	—	$	548	$	183,667
Collectively measured	12,227,099		8,343,481		423,312		1,100,699		9,548,976		54,806		31,698,373
Loans held at fair value	—		—		—		253,515		—		—		253,515

Nine months ended September 30, 2021			Commercial Real Estate		Home  Equity		Residential Real Estate		Premium Finance Receivables		Consumer and Other		Total Loans
(In thousands)	Commercial
Allowance for credit losses at beginning of period	$	94,212	$	243,603	$	11,437	$	12,459	$	17,777	$	422	$	379,910
Other adjustments	—		—		—		—		(2)		—		(2)
Charge-offs	(16,370)		(2,798)		(201)		(15)		(6,706)		(330)		(26,420)
Recoveries	2,170		1,087		742		245		6,749		158		11,151
Provision for credit losses	29,770		(101,857)		(1,039)		3,583		757		202		(68,584)
Allowance for credit losses at period end	$	109,782	$	140,035	$	10,939	$	16,272	$	18,575	$	452	$	296,055

Nine months ended September 30, 2020			Commercial Real Estate		Home  Equity		Residential Real Estate		Premium Finance Receivables		Consumer and Other		Total Loans
(In thousands)	Commercial
Allowance for credit losses at beginning of period	$	64,920	$	68,511	$	3,878	$	9,800	$	9,647	$	1,705	$	158,461
Cumulative effect adjustment from the adoption of ASU 2016-13	9,039		32,064		9,061		3,002		(4,959)		(863)		47,344
Other adjustments	—		—		—		—		24		—		24
Charge-offs	(13,109)		(9,323)		(1,378)		(777)		(11,258)		(330)		(36,175)
Recoveries	924		931		451		115		3,663		119		6,203
Provision for credit losses	51,120		141,827		(335)		(350)		20,739		50		213,051
Allowance for credit losses at period end	$	112,894	$	234,010	$	11,677	$	11,790	$	17,856	$	681	$	388,908

Summary of the Post-Modification Balance of TDRs and Loans Restructured in TDRs

The tables below present a summary of the post-modification balance of loans restructured during the three and nine months ended September 30, 2021 and 2020, respectively, which represent TDRs:

Three months ended September 30, 2021 (Dollars in thousands)	Total (1)(2)			Extension at Below Market Terms (2)			Reduction of Interest Rate (2)			Modification to  Interest-only Payments (2)			Forgiveness of Debt(2)
	Count	Balance		Count	Balance		Count	Balance		Count	Balance		Count	Balance
Commercial
Commercial, industrial and other	1	$	1	1	$	1	—	$	—	—	$	—	—	$	—
Commercial real estate
Non-construction	—	—		—	—		—	—		—	—		—	—
Residential real estate and other	8	558		7	441		2	202		—	—		—	—
Total loans	9	$	559	8	$	442	2	$	202	—	$	—	—	$	—

Three months ended September 30, 2020 (Dollars in thousands)	Total (1)(2)			Extension at Below Market Terms (2)			Reduction of Interest Rate (2)			Modification to  Interest-only Payments (2)			Forgiveness of Debt(2)
	Count	Balance		Count	Balance		Count	Balance		Count	Balance		Count	Balance
Commercial
Commercial, industrial and other	5	$	1,013	5	$	1,013	—	$	—	—	$	—	—	$	—
Commercial real estate
Non-construction	3	1,045		3	1,045		—	—		1	207		—	—
Residential real estate and other	28	5,538		21	5,281		13	1,829		1	190		—	—
Total loans	36	$	7,596	29	$	7,339	13	$	1,829	2	$	397	—	$	—

(1)TDRs may have more than one modification representing a concession. As such, TDRs during the period may be represented in more than one of the categories noted above.

(2)Balances represent the recorded investment in the loan at the time of the restructuring.

Nine months ended September 30, 2021 (Dollars in thousands)	Total (1)(2)			Extension at Below Market Terms (2)			Reduction of Interest Rate (2)			Modification to  Interest-only Payments (2)			Forgiveness of Debt(2)
	Count	Balance		Count	Balance		Count	Balance		Count	Balance		Count	Balance
Commercial
Commercial, industrial and other	6	$	547	6	$	547	—	$	—	—	$	—	—	$	—
Commercial real estate
Non-construction	5	2,944		4	2,401		2	656		1	113		—	—
Residential real estate and other	34	3,393		33	3,276		13	2,108		—	—		—	—
Total loans	45	$	6,884	43	$	6,224	15	$	2,764	1	$	113	—	$	—

Nine months ended September 30, 2020 (Dollars in thousands)	Total (1)(2)			Extension at Below Market Terms (2)			Reduction of Interest Rate (2)			Modification to  Interest-only Payments (2)			Forgiveness of Debt(2)
	Count	Balance		Count	Balance		Count	Balance		Count	Balance		Count	Balance
Commercial
Commercial, industrial and other	17	$	10,046	13	$	5,772	—	$	—	4	$	3,257	1	$	432
Commercial real estate
Non-construction	17	19,180		14	14,556		3	921		7	5,752		—	—
Residential real estate and other	69	11,184		54	10,676		28	4,205		1	190		—	—
Total loans	103	$	40,410	81	$	31,004	31	$	5,126	12	$	9,199	1	$	432

(1)TDRs may have more than one modification representing a concession. As such, TDRs during the period may be represented in more than one of the categories noted above.

(2)Balances represent the recorded investment in the loan at the time of the restructuring.

The following table presents a summary of all loans restructured in TDRs during the twelve months ended September 30, 2021 and 2020, and such loans that were in payment default under the restructured terms during the respective periods below:

(Dollars in thousands)	As of September 30, 2021			Three Months Ended September 30, 2021			Nine months ended September 30, 2021
	Total (1)(3)			Payments in Default  (2)(3)			Payments in Default  (2)(3)
	Count	Balance		Count	Balance		Count	Balance
Commercial
Commercial, industrial and other	10	$	2,863	1	$	199	4	$	1,524
Commercial real estate
Non-construction	6	3,045		3	2,275		3	2,275
Residential real estate and other	50	6,437		2	116		2	116
Total loans	66	$	12,345	6	$	2,590	9	$	3,915

(Dollars in thousands)	As of September 30, 2020			Three Months Ended September 30, 2020			Nine months ended September 30, 2020
	Total (1)(3)			Payments in Default  (2)(3)			Payments in Default  (2)(3)
	Count	Balance		Count	Balance		Count	Balance
Commercial
Commercial, industrial and other	22	$	11,476	7	$	4,607	7	$	4,607
Commercial real estate
Non-construction	18	19,432		13	14,595		13	14,595
Residential real estate and other	112	16,265		11	2,131		14	2,582
Total loans	152	$	47,173	31	$	21,333	34	$	21,784

(1)Total TDRs represent all loans restructured in TDRs during the previous twelve months from the date indicated.

(2)TDRs considered to be in payment default are over 30 days past due subsequent to the restructuring.

(3)Balances represent the recorded investment in the loan at the time of the restructuring.

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Goodwill and Other Intangible Assets (Tables)

9 Months Ended

Sep. 30, 2021

Goodwill and Intangible Assets Disclosure [Abstract]

Goodwill Assets by Business Segment

A summary of the Company’s goodwill assets by reporting unit is presented in the following table:

(In thousands)	December 31, 2020		Goodwill Acquired		Impairment Loss		Goodwill Adjustments		September 30, 2021
Community banking	$	536,396	$	—	$	—	$	—	$	536,396
Specialty finance	39,938		—		—		85		40,023
Wealth management	69,373		—		—		—		69,373
Total	$	645,707	$	—	$	—	$	85	$	645,792

Summary of Indefinite-Lived Intangible Assets

A summary of intangible assets as of the dates shown and the expected amortization of finite-lived intangible assets as of September 30, 2021 is as follows:

(In thousands)	September 30, 2021		December 31, 2020		September 30, 2020
Community banking segment:
Core deposit intangibles with finite lives:
Gross carrying amount	$	55,206	$	55,206	$	55,206
Accumulated amortization	(36,840)		(32,680)		(31,209)
Net carrying amount	$	18,366	$	22,526	$	23,997
Trademark with indefinite lives:
Carrying amount	5,800		5,800		5,800
Total net carrying amount	$	24,166	$	28,326	$	29,797
Specialty finance segment:
Customer list intangibles with finite lives:
Gross carrying amount	$	1,967	$	1,966	$	1,962
Accumulated amortization	(1,705)		(1,644)		(1,624)
Net carrying amount	$	262	$	322	$	338
Wealth management segment:
Customer list and other intangibles with finite lives:
Gross carrying amount	$	20,430	$	20,430	$	20,430
Accumulated amortization	(14,740)		(13,038)		(11,895)
Net carrying amount	$	5,690	$	7,392	$	8,535
Total intangible assets:
Gross carrying amount	$	83,403	$	83,402	$	83,398
Accumulated amortization	(53,285)		(47,362)		(44,728)
Total intangible assets, net	$	30,118	$	36,040	$	38,670

Summary of Finite-Lived Intangible Assets

A summary of intangible assets as of the dates shown and the expected amortization of finite-lived intangible assets as of September 30, 2021 is as follows:

(In thousands)	September 30, 2021		December 31, 2020		September 30, 2020
Community banking segment:
Core deposit intangibles with finite lives:
Gross carrying amount	$	55,206	$	55,206	$	55,206
Accumulated amortization	(36,840)		(32,680)		(31,209)
Net carrying amount	$	18,366	$	22,526	$	23,997
Trademark with indefinite lives:
Carrying amount	5,800		5,800		5,800
Total net carrying amount	$	24,166	$	28,326	$	29,797
Specialty finance segment:
Customer list intangibles with finite lives:
Gross carrying amount	$	1,967	$	1,966	$	1,962
Accumulated amortization	(1,705)		(1,644)		(1,624)
Net carrying amount	$	262	$	322	$	338
Wealth management segment:
Customer list and other intangibles with finite lives:
Gross carrying amount	$	20,430	$	20,430	$	20,430
Accumulated amortization	(14,740)		(13,038)		(11,895)
Net carrying amount	$	5,690	$	7,392	$	8,535
Total intangible assets:
Gross carrying amount	$	83,403	$	83,402	$	83,398
Accumulated amortization	(53,285)		(47,362)		(44,728)
Total intangible assets, net	$	30,118	$	36,040	$	38,670

Estimated Amortization

Estimated amortization
Actual in nine months ended September 30, 2021	$	5,923
Estimated remaining in 2021	1,809
Estimated—2022	6,115
Estimated—2023	4,658
Estimated—2024	3,259
Estimated—2025	2,552

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Mortgage Servicing Rights ("MSRs") (Tables)

9 Months Ended

Sep. 30, 2021

Disclosures Pertaining to Servicing Assets and Servicing Liabilities [Abstract]

Schedule of Servicing Assets at Fair Value

The following is a summary of the changes in the carrying value of MSRs, accounted for at fair value, for the periods indicated:

	Three Months Ended				Nine Months Ended
	September 30,		September 30,		September 30,		September 30,
(In thousands)	2021		2020		2021		2020
Balance at beginning of the period	$	127,604	$	77,203	$	92,081	$	85,638
Additions from loans sold with servicing retained	15,546		20,936		57,674		50,734
Estimate of changes in fair value due to:
Early buyout options (“EBO”) exercised	(116)		(367)		(518)		(367)
Payoffs and paydowns	(8,594)		(7,863)		(27,302)		(23,557)
Changes in valuation inputs or assumptions	(888)		(3,002)		11,617		(25,541)
Fair value at end of the period	$	133,552	$	86,907	$	133,552	$	86,907
Unpaid principal balance of mortgage loans serviced for others	$	12,720,126	$	10,139,878

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Deposits (Tables)

9 Months Ended

Sep. 30, 2021

Deposits [Abstract]

Summary of Deposits

The following table is a summary of deposits as of the dates shown: 

(Dollars in thousands)	September 30, 2021			December 31, 2020			September 30, 2020
Balance:
Non-interest-bearing	$	13,255,417		$	11,748,455		$	10,409,747
NOW and interest-bearing demand deposits	3,769,825			3,349,021			3,294,071
Wealth management deposits	4,177,820			4,138,712			4,235,583
Money market	10,757,654			9,348,806			9,423,653
Savings	3,861,296			3,531,029			3,415,073
Time certificates of deposit	4,130,546			4,976,628			5,066,295
Total deposits	$	39,952,558		$	37,092,651		$	35,844,422
Mix:
Non-interest-bearing	33		%	32		%	29		%
NOW and interest-bearing demand deposits	9			9			9
Wealth management deposits	11			11			12
Money market	27			25			26
Savings	10			10			10
Time certificates of deposit	10			13			14
Total deposits	100		%	100		%	100		%

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FHLB Advances, Other Borrowings and Subordinated Notes (Tables)

9 Months Ended

Sep. 30, 2021

Debt Disclosure [Abstract]

Summary of Debt

The following table is a summary of FHLB advances, other borrowings and subordinated notes as of the dates shown:

(In thousands)	September 30, 2021		December 31, 2020		September 30, 2020
FHLB advances	$	1,241,071	$	1,228,429	$	1,228,422
Other borrowings:
Notes payable	85,668		101,710		107,056
Short-term borrowings	14,051		11,366		7,983
Other	63,770		65,108		65,548
Secured borrowings	341,038		340,744		326,808
Total other borrowings	504,527		518,928		507,395
Subordinated notes	436,811		436,506		436,385
Total FHLB advances, other borrowings and subordinated notes	$	2,182,409	$	2,183,863	$	2,172,202

Summary of Pledged Securities Related to Securities Sold Under Repurchase Agreements

The following is a summary of these securities pledged as of September 30, 2021 disaggregated by investment category and maturity of the related customer sweep account, and reconciled to the outstanding balance of securities sold under repurchase agreements:

(In thousands)	Overnight Sweep Collateral
Available-for-sale securities pledged
U.S. Government agencies	$	10,773
Mortgage-backed securities	14,941
Collateralized mortgage obligations	344
Total collateral pledged	26,058
Excess collateral	12,007
Securities sold under repurchase agreements	$	14,051

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Junior Subordinated Debentures (Tables)

9 Months Ended

Sep. 30, 2021

Junior Subordinated Debenture Owed to Unconsolidated Subsidiary Trust [Abstract]

Summary of Junior Subordinated Debentures

The following table provides a summary of the Company’s junior subordinated debentures as of September 30, 2021. The junior subordinated debentures represent the par value of the obligations owed to the Trusts.

(Dollars in thousands)	Common Securities		Trust  Preferred Securities		Junior Subordinated Debentures		Rate Structure	Contractual Rate at 9/30/2021		Issue Date	Maturity Date	Earliest Redemption Date
Wintrust Capital Trust III	$	774	$	25,000	$	25,774	L+3.25	3.38	%	04/2003	04/2033	04/2008
Wintrust Statutory Trust IV	619		20,000		20,619		L+2.80	2.93	%	12/2003	12/2033	12/2008
Wintrust Statutory Trust V	1,238		40,000		41,238		L+2.60	2.73	%	05/2004	05/2034	06/2009
Wintrust Capital Trust VII	1,550		50,000		51,550		L+1.95	2.07	%	12/2004	03/2035	03/2010
Wintrust Capital Trust VIII	1,238		25,000		26,238		L+1.45	1.58	%	08/2005	09/2035	09/2010
Wintrust Capital Trust IX	1,547		50,000		51,547		L+1.63	1.75	%	09/2006	09/2036	09/2011
Northview Capital Trust I	186		6,000		6,186		L+3.00	3.13	%	08/2003	11/2033	08/2008
Town Bankshares Capital Trust I	186		6,000		6,186		L+3.00	3.13	%	08/2003	11/2033	08/2008
First Northwest Capital Trust I	155		5,000		5,155		L+3.00	3.13	%	05/2004	05/2034	05/2009
Suburban Illinois Capital Trust II	464		15,000		15,464		L+1.75	1.87	%	12/2006	12/2036	12/2011
Community Financial Shares Statutory Trust II	109		3,500		3,609		L+1.62	1.74	%	06/2007	09/2037	06/2012
Total					$	253,566		2.32	%

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Revenue from Contracts with Customers (Tables)

9 Months Ended

Sep. 30, 2021

Revenue from Contract with Customer [Abstract]

Disaggregation of Revenue by Source

The following table presents revenue from contracts with customers, disaggregated by the revenue source:

(Dollars in thousands)		Three Months Ended				Nine Months Ended
Revenue from contracts with customers	Location in income statement	September 30, 2021		September 30, 2020		September 30, 2021		September 30, 2020
Brokerage and insurance product commissions	Wealth management	$	5,230	$	4,563	$	15,418	$	13,991
Trust	Wealth management	5,369		4,179		15,765		13,718
Asset management	Wealth management	20,932		16,215		60,347		45,825
Total wealth management		31,531		24,957		91,530		73,534
Mortgage broker fees	Mortgage banking	270		85		460		312
Service charges on deposit accounts	Service charges on deposit accounts	14,149		11,497		39,434		33,182
Administrative services	Other non-interest income	1,359		1,077		3,843		3,122
Card related fees	Other non-interest income	2,513		2,021		6,474		5,506
Other deposit related fees	Other non-interest income	3,397		3,160		9,979		9,252
Total revenue from contracts with customers		$	53,219	$	42,797	$	151,720	$	124,908

Contract Assets, Contract Liabilities and Receivables from Contracts with Customers

The following table provides information about contract assets, contract liabilities and receivables from contracts with customers:

(Dollars in thousands)	September 30, 2021		December 31, 2020		September 30, 2020
Contract assets	$	—	$	—	$	—
Contract liabilities	$	1,632	$	1,548	$	1,543
Mortgage broker fees receivable	$	31	$	20	$	28
Administrative services receivable	185		64		191
Wealth management receivable	12,001		10,144		10,232
Card related fees receivable	462		783		201
Total receivables from contracts with customer	$	12,679	$	11,011	$	10,652

Performance Obligations Unsatisfied at End of Period

The following table presents the estimated future timing of recognition of upfront fees related to card and deposit related fees. These upfront fees represent performance obligations that are unsatisfied or partially unsatisfied at the end of the reporting period.

(Dollars in thousands)
Estimated remaining in 2021	$	291
Estimated—2022	591
Estimated—2023	400
Estimated—2024	250
Estimated—2025	100
Total	$	1,632

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Segment Information (Tables)

9 Months Ended

Sep. 30, 2021

Segment Reporting [Abstract]

Summary of Segment Information

The following is a summary of certain operating information for reportable segments:

	Three Months Ended				$ Change in Contribution		% Change  in Contribution
(Dollars in thousands)	September 30, 2021		September 30, 2020
Net interest income:
Community Banking	$	220,007	$	196,803	$	23,204	12	%
Specialty Finance	52,659		46,454		6,205		13
Wealth Management	7,983		6,894		1,089		16
Total Operating Segments	280,649		250,151		30,498		12
Intersegment Eliminations	6,847		5,785		1,062		18
Consolidated net interest income	$	287,496	$	255,936	$	31,560	12	%
Provision for credit losses:
Community Banking	$	(7,433)	$	23,342	$	(30,775)	NM
Specialty Finance	(483)		1,684		(2,167)		NM
Wealth Management	—		—		—		—	%
Total Operating Segments	(7,916)		25,026		(32,942)		NM
Intersegment Eliminations	—		—		—		—
Consolidated provision for credit losses	$	(7,916)	$	25,026	$	(32,942)	NM
Non-interest income:
Community Banking	$	94,292	$	136,996	$	(42,704)	(31)	%
Specialty Finance	24,426		21,409		3,017		14
Wealth Management	33,557		26,152		7,405		28
Total Operating Segments	152,275		184,557		(32,282)		(17)
Intersegment Eliminations	(15,801)		(13,964)		(1,837)		13
Consolidated non-interest income	$	136,474	$	170,593	$	(34,119)	(20)	%
Net revenue:
Community Banking	$	314,299	$	333,799	$	(19,500)	(6)	%
Specialty Finance	77,085		67,863		9,222		14
Wealth Management	41,540		33,046		8,494		26
Total Operating Segments	432,924		434,708		(1,784)		0
Intersegment Eliminations	(8,954)		(8,179)		(775)		9
Consolidated net revenue	$	423,970	$	426,529	$	(2,559)	(1)	%
Segment profit:
Community Banking	$	68,790	$	70,584	$	(1,794)	(3)	%
Specialty Finance	30,202		29,859		343		1	%
Wealth Management	10,145		6,872		3,273		48
Consolidated net income	$	109,137	$	107,315	$	1,822	2	%
Segment assets:
Community Banking	$	38,464,169	$	35,729,021	$	2,735,148	8	%
Specialty Finance	7,918,933		6,732,765		1,186,168		18
Wealth Management	1,449,169		1,269,932		179,237		14
Consolidated total assets	$	47,832,271	$	43,731,718	$	4,100,553	9	%

NM - Not meaningful

	Nine Months Ended				$ Change in Contribution		% Change  in Contribution
(Dollars in thousands)	September 30, 2021		September 30, 2020
Net interest income:
Community Banking	$	643,175	$	609,316	$	33,859	6	%
Specialty Finance	142,752		129,581		13,171		10
Wealth Management	23,197		23,272		(75)		0
Total Operating Segments	809,124		762,169		46,955		6
Intersegment Eliminations	19,857		18,341		1,516		8
Consolidated net interest income	$	828,981	$	780,510	$	48,471	6	%
Provision for credit losses:
Community Banking	$	(69,168)	$	207,168	$	(276,336)	NM
Specialty Finance	606		5,872		(5,266)		(90)	%
Wealth Management	—		—		—		—
Total Operating Segments	(68,562)		213,040		(281,602)		NM
Intersegment Eliminations	—		—		—		—
Consolidated provision for credit losses	$	(68,562)	$	213,040	$	(281,602)	NM
Non-interest income:
Community Banking	$	331,970	$	347,697	$	(15,727)	(5)	%
Specialty Finance	69,999		64,548		5,451		8
Wealth Management	95,651		74,747		20,904		28
Total Operating Segments	497,620		486,992		10,628		2
Intersegment Eliminations	(45,267)		(41,164)		(4,103)		10
Consolidated non-interest income	$	452,353	$	445,828	$	6,525	1	%
Net revenue:
Community Banking	$	975,145	$	957,013	$	18,132	2	%
Specialty Finance	212,751		194,129		18,622		10
Wealth Management	118,848		98,019		20,829		21
Total Operating Segments	1,306,744		1,249,161		57,583		5
Intersegment Eliminations	(25,410)		(22,823)		(2,587)		11
Consolidated net revenue	$	1,281,334	$	1,226,338	$	54,996	4	%
Segment profit:
Community Banking	$	263,343	$	97,858	$	165,485	NM
Specialty Finance	77,955		74,680		3,275		4	%
Wealth Management	26,096		19,248		6,848		36
Consolidated net income	$	367,394	$	191,786	$	175,608	92	%

NM - Not meaningful

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Derivative Financial Instruments (Tables)

9 Months Ended

Sep. 30, 2021

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Schedule Of Fair Value Of Derivative Financial Instruments

The table below presents the fair value of the Company’s derivative financial instruments as of September 30, 2021, December 31, 2020 and September 30, 2020:

	Derivative Assets						Derivative Liabilities
(In thousands)	September 30, 2021		December 31, 2020		September 30, 2020		September 30, 2021		December 31, 2020		September 30, 2020
Derivatives designated as hedging instruments under ASC 815:
Interest rate derivatives designated as Cash Flow Hedges	$	37,529	$	8,182	$	—	$	18,054	$	39,715	$	49,110
Interest rate derivatives designated as Fair Value Hedges	839		—		—		8,427		14,520		16,213
Total derivatives designated as hedging instruments under ASC 815	$	38,368	$	8,182	$	—	$	26,481	$	54,235	$	65,323
Derivatives not designated as hedging instruments under ASC 815:
Interest rate derivatives	$	130,947	$	221,205	$	253,238	$	131,097	$	221,608	$	253,530
Interest rate lock commitments	16,795		48,925		68,201		753		—		—
Forward commitments to sell mortgage loans	5,260		—		—		2,740		12,510		8,088
Foreign exchange contracts	242		111		49		243		112		49
Total derivatives not designated as hedging instruments under ASC 815	$	153,244	$	270,241	$	321,488	$	134,833	$	234,230	$	261,667
Total Derivatives	$	191,612	$	278,423	$	321,488	$	161,314	$	288,465	$	326,990

Schedule Of Cash Flow Hedging Instruments

The table below provides details on these cash flow hedges, summarized by derivative type and maturity, as of September 30, 2021:

	September 30, 2021
(In thousands)	Notional		Fair Value
Maturity Date	Amount		Asset (Liability)
Interest Rate Swaps:
October 2021	$	25,000	$	(9)
November 2021	20,000		(65)
December 2021	165,000		(812)
March 2022	500,000		(110)
May 2022	370,000		(4,335)
June 2022	160,000		(2,156)
July 2022	230,000		(3,218)
August 2022	235,000		(3,795)
March 2023	250,000		(133)
April 2024	250,000		784
July 2027 (1)	1,000,000		36,745
Interest Rate Collars:
September 2023	85,714		(3,421)
Total Cash Flow Hedges	$	3,290,714	$	19,475

(1)Interest rate swaps effective starting in July 2022.

Rollforward Of Amounts In Accumulated Other Comprehensive Income Related To Interest Rate Swaps Designated As Cash Flow Hedges

A rollforward of the amounts in accumulated other comprehensive income or loss related to interest rate derivatives designated as cash flow hedges follows:

	Three Months Ended				Nine Months Ended
(In thousands)	September 30, 2021		September 30, 2020		September 30, 2021		September 30, 2020
Unrealized gain (loss) at beginning of period	$	10,471	$	(59,503)	$	(31,533)	$	(17,943)
Amount reclassified from accumulated other comprehensive income to interest expense on deposits, other borrowings and junior subordinated debentures	6,780		5,667		20,342		12,208
Amount of income (loss) recognized in other comprehensive income	2,224		4,726		30,666		(43,375)
Unrealized gain (loss) at end of period	$	19,475	$	(49,110)	$	19,475	$	(49,110)

Schedule of Carrying Amount of Hedged Assets/(Liabilities)

The following table presents the carrying amount of the hedged assets/(liabilities) and the cumulative amount of fair value hedging adjustment included in the carrying amount of the hedged assets/(liabilities) that are designated as a fair value hedge accounting relationship as of September 30, 2021:

		September 30, 2021
(In thousands) Derivatives in Fair Value Hedging Relationships	Location in the Statement of Condition	Carrying Amount of the Hedged Assets/(Liabilities)		Cumulative Amount of Fair Value Hedging Adjustment Included in the Carrying Amount of the Hedged Assets/(Liabilities)		Cumulative Amount of Fair Value Hedging Adjustment Remaining for any Hedged Assets (Liabilities) for which Hedge Accounting has been Discontinued
Interest rate swaps	Loans, net of unearned income	$	162,775	$	7,815	$	(138)
	Available-for-sale debt securities	1,229		84		—

The following table presents the loss or gain recognized related to derivative instruments that are designated as fair value hedges for the respective period:

(In thousands) Derivatives in Fair Value Hedging Relationships	Location of (Loss)/Gain Recognized in Income on Derivative	Three Months Ended		Nine Months Ended
		September 30, 2021		September 30, 2021
Interest rate swaps	Interest and fees on loans	$	31	$	61
	Interest income - investment securities	—		—

Summary Amounts Included In Consolidated Statement Of Income Related To Derivatives

Amounts included in the Consolidated Statements of Income related to derivative instruments not designated in hedge relationships were as follows:

(In thousands)		Three Months Ended				Nine Months Ended
Derivative	Location in income statement	September 30, 2021		September 30, 2020		September 30, 2021		September 30, 2020
Interest rate swaps and caps	Trading gains (losses), net	$	55	$	135	$	(56)	$	(996)
Mortgage banking derivatives	Mortgage banking revenue	(4,201)		11,202		(32,160)		71,761
Foreign exchange contracts	Trading (losses) gains, net	(1)		5		(9)		(8)
Covered call options	Fees from covered call options	1,157		—		2,545		2,292
Derivative contract held as economic hedge on MSRs	Mortgage banking revenue	—		—		—		4,749

Offsetting Assets

The tables below summarize the Company's interest rate derivatives and offsetting positions as of the dates shown.

	Derivative Assets						Derivative Liabilities
	Fair Value						Fair Value
(In thousands)	September 30, 2021		December 31, 2020		September 30, 2020		September 30, 2021		December 31, 2020		September 30, 2020
Gross Amounts Recognized	$	169,315	$	229,387	$	253,238	$	157,578	$	275,843	$	318,853
Less: Amounts offset in the Statements of Financial Condition	—		—		—		—		—		—
Net amount presented in the Statements of Financial Condition	$	169,315	$	229,387	$	253,238	$	157,578	$	275,843	$	318,853
Gross amounts not offset in the Statements of Financial Condition
Offsetting Derivative Positions	(42,645)		(8,647)		(353)		(42,645)		(8,647)		(353)
Collateral Posted	—		—		—		(110,440)		(266,832)		(318,071)
Net Credit Exposure	$	126,670	$	220,740	$	252,885	$	4,493	$	364	$	429

Offsetting Liabilities

The tables below summarize the Company's interest rate derivatives and offsetting positions as of the dates shown.

	Derivative Assets						Derivative Liabilities
	Fair Value						Fair Value
(In thousands)	September 30, 2021		December 31, 2020		September 30, 2020		September 30, 2021		December 31, 2020		September 30, 2020
Gross Amounts Recognized	$	169,315	$	229,387	$	253,238	$	157,578	$	275,843	$	318,853
Less: Amounts offset in the Statements of Financial Condition	—		—		—		—		—		—
Net amount presented in the Statements of Financial Condition	$	169,315	$	229,387	$	253,238	$	157,578	$	275,843	$	318,853
Gross amounts not offset in the Statements of Financial Condition
Offsetting Derivative Positions	(42,645)		(8,647)		(353)		(42,645)		(8,647)		(353)
Collateral Posted	—		—		—		(110,440)		(266,832)		(318,071)
Net Credit Exposure	$	126,670	$	220,740	$	252,885	$	4,493	$	364	$	429

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Fair Values of Assets and Liabilities (Tables)

9 Months Ended

Sep. 30, 2021

Fair Value Disclosures [Abstract]

Summary Of Balances Of Assets And Liabilities Measured At Fair Value On A Recurring Basis

The following tables present the balances of assets and liabilities measured at fair value on a recurring basis for the periods presented:

	September 30, 2021
(In thousands)	Total		Level 1		Level 2		Level 3
Available-for-sale securities
U.S. Treasury	$	6,000	$	6,000	$	—	$	—
U.S. Government agencies	53,275		—		53,275		—
Municipal	174,600		—		56,876		117,724
Corporate notes	99,118		—		99,118		—
Mortgage-backed	2,040,485		—		2,040,485		—
Trading account securities	1,103		—		1,103		—
Equity securities with readily determinable fair value	88,193		80,127		8,066		—
Mortgage loans held-for-sale	925,312		—		925,312		—
Loans held-for-investment	30,979		—		18,847		12,132
MSRs	133,552		—		—		133,552
Nonqualified deferred compensation assets	15,797		—		15,797		—
Derivative assets	191,612		—		177,000		14,612
Total	$	3,760,026	$	86,127	$	3,395,879	$	278,020
Derivative liabilities	$	161,314	$	—	$	161,314	$	—

 

	December 31, 2020
(In thousands)	Total		Level 1		Level 2		Level 3
Available-for-sale securities
U.S. Treasury	$	304,971	$	304,971	$	—	$	—
U.S. Government agencies	84,513		—		82,547		1,966
Municipal	146,910		—		37,034		109,876
Corporate notes	91,405		—		91,405		—
Mortgage-backed	2,428,040		—		2,428,040		—
Trading account securities	671		—		671		—
Equity securities with readily determinable fair value	90,862		82,796		8,066		—
Mortgage loans held-for-sale	1,272,090		—		1,272,090		—
Loans held-for-investment	55,134		—		44,854		10,280
MSRs	92,081		—		—		92,081
Nonqualified deferred compensation assets	15,398		—		15,398		—
Derivative assets	278,423		—		230,332		48,091
Total	$	4,860,498	$	387,767	$	4,210,437	$	262,294
Derivative liabilities	$	288,465	$	—	$	288,465	$	—

	September 30, 2020
(In thousands)	Total		Level 1		Level 2		Level 3
Available-for-sale securities
U.S. Treasury	$	280,108	$	280,108	$	—	$	—
U.S. Government agencies	178,666		—		176,537		2,129
Municipal	154,195		—		34,724		119,471
Corporate notes	104,135		—		104,135		—
Mortgage-backed	2,229,355		—		2,229,355		—
Trading account securities	1,720		—		1,720		—
Equity securities with readily determinable fair value	54,398		46,332		8,066		—
Mortgage loans held-for-sale	959,671		—		959,671		—
Loans held-for-investment	253,515		—		240,902		12,613
MSRs	86,907		—		—		86,907
Nonqualified deferred compensation assets	14,197		—		14,197		—
Derivative assets	321,488		—		254,601		66,887
Total	$	4,638,355	$	326,440	$	4,023,908	$	288,007
Derivative liabilities	$	326,990	$	—	$	326,990	$	—

Summary Of Changes In Level 3 Assets And Liabilities Measured At Fair Value On A Recurring Basis

The changes in Level 3 assets measured at fair value on a recurring basis during the three and nine months ended September 30, 2021 and 2020 are summarized as follows:

			U.S. Government agencies		Loans held-for- investment		Mortgage servicing rights		Derivative assets
(In thousands)	Municipal
Balance at July 1, 2021	$	117,606	$	—	$	11,007	$	127,604	$	22,570
Total net gains (losses) included in:
Net income (1)	—		—		54		5,948		(7,958)
Other comprehensive income (loss)	(757)		—		—		—		—
Purchases	875		—		—		—		—
Issuances	—		—		—		—		—
Sales	—		—		—		—		—
Settlements	—		—		(588)		—		—
Net transfers into/(out of) Level 3	—		—		1,659		—		—
Balance at September 30, 2021	$	117,724	$	—	$	12,132	$	133,552	$	14,612

(1)Changes in the balance of MSRs and derivative assets related to fair value adjustments are recorded as components of mortgage banking revenue. Changes in the balance of loans held-for-investment related to fair value adjustments are recorded as other non-interest income.

			U.S. Government Agencies		Loans held-for- investment		Mortgage servicing rights		Derivative Assets
(In thousands)	Municipal
Balance at January 1, 2021	$	109,876	$	1,966	$	10,280	$	92,081	$	48,091
Total net gains (losses) included in:
Net income (1)	—		(4)		(309)		41,471		(33,479)
Other comprehensive income (loss)	(3,199)		(24)		—		—		—
Purchases	19,038		—		—		—		—
Issuances	—		—		—		—		—
Sales	—		—		—		—		—
Settlements	(7,991)		(1,938)		(4,565)		—		—
Net transfers into/(out of) Level 3	—		—		6,726		—		—
Balance at September 30, 2021	$	117,724	$	—	$	12,132	$	133,552	$	14,612

			U.S. Government agencies		Loans held-for- investment		Mortgage servicing rights		Derivative assets
(In thousands)	Municipal
Balance at July 1, 2020	$	117,255	$	2,293	$	13,953	$	77,203	$	58,433
Total net gains (losses) included in:
Net income (1)	—		—		47		9,704		8,454
Other comprehensive income (loss)	64		(7)		—		—		—
Purchases	3,221		—		—		—		—
Issuances	—		—		—		—		—
Sales	—		—		—		—		—
Settlements	(1,069)		(157)		(7,877)		—		—
Net transfers into/(out of) Level 3	—		—		6,490		—		—
Balance at September 30, 2020	$	119,471	$	2,129	$	12,613	$	86,907	$	66,887

			U.S. Government Agencies		Loans held-for- investment		Mortgage servicing rights		Derivative Assets
(In thousands)	Municipal
Balance at January 1, 2020	$	111,950	$	2,646	$	9,620	$	85,638	$	2,631
Total net gains (losses) included in:
Net income (1)	—		—		169		1,269		64,256
Other comprehensive income (loss)	(1,731)		(46)		—		—		—
Purchases	16,093		—		—		—		—
Issuances	—		—		—		—		—
Sales	—		—		—		—		—
Settlements	(6,841)		(471)		(9,337)		—		—
Net transfers into/(out of) Level 3	—		—		12,161		—		—
Balance at September 30, 2020	$	119,471	$	2,129	$	12,613	$	86,907	$	66,887

(1)Changes in the balance of MSRs and derivative assets related to fair value adjustments are recorded as components of mortgage banking revenue. Changes in the balance of loans held-for-investment related to fair value adjustments are recorded as other non-interest income.

Summary Of Assets Measured At Fair Value On A Nonrecurring Basis

For assets measured at fair value on a nonrecurring basis that were still held in the balance sheet at the end of the period, the following table provides the carrying value of the related individual assets or portfolios at September 30, 2021:

	September 30, 2021								Three Months Ended September 30, 2021 Fair Value Losses Recognized, net		Nine Months Ended September 30, 2021 Fair Value Losses Recognized, net
(In thousands)	Total		Level 1		Level 2		Level 3
Individually assessed loans - foreclosure probable and collateral-dependent	$	78,653	$	—	$	—	$	78,653	$	1,425	$	17,956
Other real estate owned (1)	13,845		—		—		13,845		93		1,012
Total	$	92,498	$	—	$	—	$	92,498	$	1,518	$	18,968

(1)Fair value losses recognized, net on other real estate owned include valuation adjustments and charge-offs during the respective period.

Schedule Of Valuation Techniques And Significant Unobservable Inputs Used To Measure Both Recurring And Non-Recurring

The valuation techniques and significant unobservable inputs used to measure both recurring and non-recurring Level 3 fair value measurements at September 30, 2021 were as follows:

(Dollars in thousands)	Fair Value		Valuation Methodology	Significant Unobservable Input	Range of Inputs	Weighted Average of Inputs	Impact to valuation from an increased or higher input value
Measured at fair value on a recurring basis:
Municipal Securities	$	117,724	Bond pricing	Equivalent rating	BBB-AA+	N/A	Increase
Loans held-for-investment	12,132		Discounted cash flows	Discount rate	2.88%	2.88%	Decrease
				Credit discount	0%-3%	0.51%	Decrease
				Constant prepayment rate (CPR)	12.77%	12.77%	Decrease
MSRs	133,552		Discounted cash flows	Discount rate	7%-19%	9.82%	Decrease
				Constant prepayment rate (CPR)	6%-92%	12.77%	Decrease
				Cost of servicing	$70-$200	$75	Decrease
				Cost of servicing - delinquent	$200-$1,000	$287	Decrease
Derivatives	14,612		Discounted cash flows	Pull-through rate	1%-100%	86.28%	Increase
Measured at fair value on a non-recurring basis:
Individually assessed loans - foreclosure probable and collateral-dependent	$	78,653	Appraisal value	Appraisal adjustment - cost of sale	10%	10.00%	Decrease
Other real estate owned	13,845		Appraisal value	Appraisal adjustment - cost of sale	10%	10.00%	Decrease

Summary Of Carrying Amounts And Estimated Fair Values Of Financial Instruments

The table below presents the carrying amounts and estimated fair values of the Company’s financial instruments as of the dates shown:

	At September 30, 2021				At December 31, 2020				At September 30, 2020
	Carrying		Fair		Carrying		Fair		Carrying		Fair
(In thousands)	Value		Value		Value		Value		Value		Value
Financial Assets:
Cash and cash equivalents	$	462,299	$	462,299	$	322,474	$	322,474	$	308,695	$	308,695
Interest-bearing deposits with banks	5,232,315		5,232,315		4,802,527		4,802,527		3,825,823		3,825,823
Available-for-sale securities	2,373,478		2,373,478		3,055,839		3,055,839		2,946,459		2,946,459
Held-to-maturity securities	2,736,722		2,699,480		579,138		593,767		560,267		575,947
Trading account securities	1,103		1,103		671		671		1,720		1,720
Equity securities with readily determinable fair value	88,193		88,193		90,862		90,862		54,398		54,398
FHLB and FRB stock, at cost	135,408		135,408		135,588		135,588		135,568		135,568
Brokerage customer receivables	26,378		26,378		17,436		17,436		16,818		16,818
Mortgage loans held-for-sale, at fair value	925,312		925,312		1,272,090		1,272,090		959,671		959,671
Loans held-for-investment, at fair value	30,979		30,979		55,134		55,134		253,515		253,515
Loans held-for-investment, at amortized cost	33,233,064		33,276,688		32,023,939		31,871,683		31,882,040		31,723,559
Nonqualified deferred compensation assets	15,797		15,797		15,398		15,398		14,197		14,197
Derivative assets	191,612		191,612		278,423		278,423		321,488		321,488
Accrued interest receivable and other	272,293		272,293		272,339		272,339		272,940		272,940
Total financial assets	$	45,724,953	$	45,731,335	$	42,921,858	$	42,784,231	$	41,553,599	$	41,410,798
Financial Liabilities
Non-maturity deposits	$	35,822,012	$	35,822,012	$	32,116,023	$	32,116,023	$	30,778,127	$	30,778,127
Deposits with stated maturities	4,130,546		4,124,199		4,976,628		4,969,849		5,066,295		5,063,732
FHLB advances	1,241,071		1,164,168		1,228,429		1,172,315		1,228,422		1,207,203
Other borrowings	504,527		504,527		518,928		518,928		507,395		507,395
Subordinated notes	436,811		474,171		436,506		473,093		436,385		473,825
Junior subordinated debentures	253,566		207,675		253,566		204,713		253,566		208,333
Derivative liabilities	161,314		161,314		288,465		288,465		326,990		326,990
Accrued interest payable	15,030		15,030		15,645		15,645		21,310		21,310
Total financial liabilities	$	42,564,877	$	42,473,096	$	39,834,190	$	39,759,031	$	38,618,490	$	38,586,915

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Stock-Based Compensation Plans (Tables)

9 Months Ended

Sep. 30, 2021

Share-based Payment Arrangement, Noncash Expense [Abstract]

Summary Of Stock Option Activity

A summary of the Company's stock option activity for the nine months ended September 30, 2021 and September 30, 2020 is presented below:

Stock Options	Common Shares	Weighted Average Strike Price		Remaining Contractual Term (1)	Intrinsic Value (2) (in thousands)
Outstanding at January 1, 2021	520,663	$	42.47
Granted	—	—
Exercised	(245,286)	43.05
Forfeited or canceled	(590)	46.86
Outstanding at September 30, 2021	274,787	$	41.95	1.4	$	10,557
Exercisable at September 30, 2021	273,238	$	41.92	1.4	$	10,506

Stock Options	Common Shares	Weighted Average Strike Price		Remaining Contractual Term (1)	Intrinsic Value (2) (in thousands)
Outstanding at January 1, 2020	755,332	$	42.43
Granted	—	—
Exercised	(104,703)	38.71
Forfeited or canceled	(5,608)	44.34
Outstanding at September 30, 2020	645,021	$	43.02	1.9	$	52
Exercisable at September 30, 2020	637,120	$	43.01	1.8	$	52

(1)Represents the remaining weighted average contractual life in years.

(2)Aggregate intrinsic value represents the total pre-tax intrinsic value (i.e., the difference between the Company's stock price on the last trading day of the quarter and the option exercise price, multiplied by the number of shares) that would have been received by the option holders if they had exercised their options on the last day of the quarter. Options with exercise prices above the stock price on the last trading day of the quarter are excluded from the calculation of intrinsic value. The intrinsic value will change based on the fair market value of the Company's stock.

Summary Of Plans' Restricted Share And Performance-Vested Stock Award Activity

A summary of the Plans' restricted share activity for the nine months ended September 30, 2021 and September 30, 2020 is presented below:

	Nine months ended September 30, 2021			Nine months ended September 30, 2020
Restricted Shares	Common Shares	Weighted Average Grant-Date Fair Value		Common Shares	Weighted Average Grant-Date Fair Value
Outstanding at January 1	234,794	$	59.02	144,328	$	60.37
Granted	268,429	63.22		113,156	61.32
Vested and issued	(13,120)	72.01		(13,917)	77.77
Forfeited or canceled	(12,624)	63.55		(6,547)	73.71
Outstanding at September 30	477,479	$	60.90	237,020	$	59.43
Vested, but not issuable at September 30	95,215	$	52.39	93,514	$	52.08

A summary of the Plans' performance-based stock award activity, based on the target level of the awards, for the nine months ended September 30, 2021 and September 30, 2020 is presented below:

	Nine months ended September 30, 2021			Nine months ended September 30, 2020
Performance-based Stock	Common Shares	Weighted Average Grant-Date Fair Value		Common Shares	Weighted Average Grant-Date Fair Value
Outstanding at January 1	482,608	$	71.15	465,515	$	74.37
Granted	208,732	58.97		169,864	63.62
Added by performance factor at vesting	—	—		48,831	72.59
Vested and issued	—	—		(180,789)	72.59
Expired, canceled or forfeited	(132,998)	86.51		(18,727)	72.66
Outstanding at September 30	558,342	$	62.94	484,694	$	71.15
Vested, but deferred at September 30	35,040	$	43.53	34,441	$	43.07

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Shareholders' Equity and Earnings Per Share (Tables)

9 Months Ended

Sep. 30, 2021

Earnings Per Share, Basic and Diluted, Other Disclosures [Abstract]

Components Of Other Comprehensive Income (Loss)

The following tables summarize the components of other comprehensive income (loss), including the related income tax effects, and the related amount reclassified to net income for the periods presented (in thousands).

	Accumulated Unrealized Gains (Losses) on Securities		Accumulated Unrealized Gains (Losses) on Derivative Instruments		Accumulated Foreign Currency Translation Adjustments		Total Accumulated Other Comprehensive Income (Loss)
Balance at July 1, 2021	$	30,189	$	7,720	$	(27,776)	$	10,133
Other comprehensive (loss) income during the period, net of tax, before reclassifications	(10,374)		1,631		(4,650)		(13,393)
Amount reclassified from accumulated other comprehensive income (loss) into net income, net of tax	(256)		4,973		—		4,717
Amount reclassified from accumulated other comprehensive income (loss) related to amortization of unrealized gains on investment securities transferred to held-to-maturity from available-for-sale, net of tax	(40)		—		—		(40)
Net other comprehensive (loss) income during the period, net of tax	$	(10,670)	$	6,604	$	(4,650)	$	(8,716)
Balance at September 30, 2021	$	19,519	$	14,324	$	(32,426)	$	1,417
Balance at January 1, 2021	$	70,737	$	(23,090)	$	(32,265)	$	15,382
Other comprehensive (loss) income during the period, net of tax, before reclassifications	(50,265)		22,493		(161)		(27,933)
Amount reclassified from accumulated other comprehensive income (loss) into net income, net of tax	(837)		14,921		—		14,084
Amount reclassified from accumulated other comprehensive income (loss) related to amortization of unrealized gains on investment securities transferred to held-to-maturity from available-for-sale, net of tax	(116)		—		—		(116)
Net other comprehensive (loss) income during the period, net of tax	$	(51,218)	$	37,414	$	(161)	$	(13,965)
Balance at September 30, 2021	$	19,519	$	14,324	$	(32,426)	$	1,417

Balance at July 1, 2020	$	85,506	$	(43,606)	$	(42,497)	$	(597)
Other comprehensive (loss) income during the period, net of tax, before reclassifications	(10,682)		3,466		2,891		(4,325)
Amount reclassified from accumulated other comprehensive income (loss) into net income, net of tax	(36)		4,157		—		4,121
Amount reclassified from accumulated other comprehensive income (loss) related to amortization of unrealized gains on investment securities transferred to held-to-maturity from available-for-sale, net of tax	(40)		—		—		(40)
Net other comprehensive (loss) income during the period, net of tax	$	(10,758)	$	7,623	$	2,891	$	(244)
Balance at September 30, 2020	$	74,748	$	(35,983)	$	(39,606)	$	(841)
Balance at January 1, 2020	$	14,982	$	(13,141)	$	(36,519)	$	(34,678)
Other comprehensive income (loss) during the period, net of tax, before reclassifications	60,043		(31,796)		(3,087)		25,160
Amount reclassified from accumulated other comprehensive income (loss) into net income, net of tax	(146)		8,954		—		8,808
Amount reclassified from accumulated other comprehensive income (loss) related to amortization of unrealized gains on investment securities transferred to held-to-maturity from available-for-sale, net of tax	(131)		—		—		(131)
Net other comprehensive income (loss) during the period, net of tax	$	59,766	$	(22,842)	$	(3,087)	$	33,837
Balance at September 30, 2020	$	74,748	$	(35,983)	$	(39,606)	$	(841)

Other Comprehensive Income Reclassified from AOCI

	Amount Reclassified from Accumulated Other Comprehensive Income (Loss) for the
Details Regarding the Component of Accumulated Other Comprehensive Income (Loss)	Three Months Ended				Nine Months Ended				Impacted Line on the Consolidated Statements of Income
	September 30,				September 30,
	2021		2020		2021		2020
Accumulated unrealized gains on securities
Gains included in net income	$	350	$	50	$	1,144	$	200	Gains (losses) on investment securities, net
	350		50		1,144		200		Income before taxes
Tax effect	(94)		(14)		(307)		(54)		Income tax expense
Net of tax	$	256	$	36	$	837	$	146	Net income
Accumulated unrealized gains on derivative instruments
Amount reclassified to interest expense on deposits	$	4,947	$	3,884	$	14,898	$	8,806	Interest on deposits
Amount reclassified to interest expense on other borrowings	636		740		1,958		1,458		Interest on other borrowings
Amount reclassified to interest expense on junior subordinated debentures	1,197		1043		3,486		1944		Interest on junior subordinated debentures
	(6,780)		(5,667)		(20,342)		(12,208)		Income before taxes
Tax effect	1,807		1,510		5,421		3,254		Income tax expense
Net of tax	$	(4,973)	$	(4,157)	$	(14,921)	$	(8,954)	Net income

Computation Of Basic And Diluted Earnings Per Common Share

The following table shows the computation of basic and diluted earnings per share for the periods indicated:

		Three Months Ended				Nine Months Ended
(In thousands, except per share data)		September 30, 2021		September 30, 2020		September 30, 2021		September 30, 2020
Net income		$	109,137	$	107,315	$	367,394	$	191,786
Less: Preferred stock dividends		6,991		10,286		20,973		14,386
Net income applicable to common shares	(A)	$	102,146	$	97,029	$	346,421	$	177,400
Weighted average common shares outstanding	(B)	57,000		57,597		56,985		57,595
Effect of dilutive potential common shares
Common stock equivalents		753		449		728		469
Weighted average common shares and effect of dilutive potential common shares	(C)	57,753		58,046		57,713		58,064
Net income per common share:
Basic	(A/B)	$	1.79	$	1.68	$	6.08	$	3.08
Diluted	(A/C)	$	1.77	$	1.67	$	6.00	$	3.06

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Investment Securities (Marketable Securities) (Detail) - USD ($)	Sep. 30, 2021	Dec. 31, 2020	Sep. 30, 2020
Available-for-sale securities
Amortized Cost	$ 2,347,419,000	$ 2,960,081,000	$ 2,845,410,000
Gross Unrealized Gains	52,948,000	98,578,000	105,306,000
Gross Unrealized Losses	(26,889,000)	(2,820,000)	(4,257,000)
Fair Value	2,373,478,000	3,055,839,000	2,946,459,000
Held-to-maturity securities
Amortized Cost	2,736,805,000	579,197,000	560,330,000
Gross Unrealized Gains	12,727,000	14,784,000	15,735,000
Gross Unrealized Losses	(50,052,000)	(214,000)	(118,000)
Fair Value	2,699,480,000	593,767,000	575,947,000
Less: Allowance for credit losses	(83,000)	(59,000)	(63,000)
Held-to-maturity securities, net of allowance for credit losses	2,736,722,000	579,138,000	560,267,000
Equity securities with readily determinable fair value
Amortized Cost	83,909,000	87,618,000	53,250,000
Gross Unrealized Gains	5,678,000	3,674,000	1,537,000
Gross Unrealized Losses	(1,394,000)	(430,000)	(389,000)
Fair Value	88,193,000	90,862,000	54,398,000
U.S. Treasury
Available-for-sale securities
Amortized Cost	6,000,000	304,956,000	279,903,000
Gross Unrealized Gains	0	15,000	206,000
Gross Unrealized Losses	0	0	(1,000)
Fair Value	6,000,000	304,971,000	280,108,000
U.S. Government agencies
Available-for-sale securities
Amortized Cost	50,163,000	80,074,000	172,951,000
Gross Unrealized Gains	3,112,000	4,439,000	5,715,000
Gross Unrealized Losses	0	0	0
Fair Value	53,275,000	84,513,000	178,666,000
Held-to-maturity securities
Amortized Cost	176,143,000	177,959,000	349,415,000
Gross Unrealized Gains	482,000	2,552,000	4,396,000
Gross Unrealized Losses	(2,878,000)	0	0
Fair Value	173,747,000	180,511,000	353,811,000
Municipal
Available-for-sale securities
Amortized Cost	170,612,000	141,244,000	150,333,000
Gross Unrealized Gains	4,202,000	5,707,000	3,996,000
Gross Unrealized Losses	(214,000)	(41,000)	(134,000)
Fair Value	174,600,000	146,910,000	154,195,000
Held-to-maturity securities
Amortized Cost	190,662,000	200,707,000	210,915,000
Gross Unrealized Gains	10,321,000	12,232,000	11,339,000
Gross Unrealized Losses	(334,000)	(214,000)	(118,000)
Fair Value	200,649,000	212,725,000	222,136,000
Corporate notes
Held-to-maturity securities
Amortized Cost	51,691,000
Gross Unrealized Gains	0
Gross Unrealized Losses	(738,000)
Fair Value	50,953,000
Corporate notes, financial issuers
Available-for-sale securities
Amortized Cost	98,848,000	91,786,000	106,764,000
Gross Unrealized Gains	500,000	1,363,000	455,000
Gross Unrealized Losses	(1,241,000)	(2,764,000)	(4,110,000)
Fair Value	98,107,000	90,385,000	103,109,000
Corporate notes, other
Available-for-sale securities
Amortized Cost	1,000,000	1,000,000	1,000,000
Gross Unrealized Gains	11,000	20,000	26,000
Gross Unrealized Losses	0	0	0
Fair Value	1,011,000	1,020,000	1,026,000
Mortgage-backed securities
Available-for-sale securities
Amortized Cost	1,913,139,000	2,330,332,000	2,121,423,000
Gross Unrealized Gains	44,931,000	86,721,000	94,543,000
Gross Unrealized Losses	(25,434,000)	(15,000)	(11,000)
Fair Value	1,932,636,000	2,417,038,000	2,215,955,000
Held-to-maturity securities
Amortized Cost	2,318,309,000	200,531,000
Gross Unrealized Gains	1,924,000	0
Gross Unrealized Losses	(46,102,000)	0
Fair Value	2,274,131,000	200,531,000
Collateralized mortgage obligations
Available-for-sale securities
Amortized Cost	107,657,000	10,689,000	13,036,000
Gross Unrealized Gains	192,000	313,000	365,000
Gross Unrealized Losses	0	0	(1,000)
Fair Value	107,849,000	11,002,000	13,400,000
Mortgage-backed securities, subprime
Available-for-sale securities
Fair Value	$ 0	$ 0	$ 0

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Investment Securities (Continuous Unrealized Loss Position, Fair Value) (Detail) $ in Thousands	Sep. 30, 2021 USD ($)
Available-for-sale securities
Continuous unrealized losses existing for less than 12 months, fair value	$ 929,934
Continuous unrealized losses existing for less than 12 months, unrealized losses	(25,867)
Continuous unrealized losses existing for greater than 12 months, fair value	46,086
Continuous unrealized losses existing for greater than 12 months, unrealized losses	(1,022)
Total, fair value	976,020
Total, unrealized losses	(26,889)
U.S. Treasury
Available-for-sale securities
Continuous unrealized losses existing for less than 12 months, fair value	0
Continuous unrealized losses existing for less than 12 months, unrealized losses	0
Continuous unrealized losses existing for greater than 12 months, fair value	0
Continuous unrealized losses existing for greater than 12 months, unrealized losses	0
Total, fair value	0
Total, unrealized losses	0
U.S. Government agencies
Available-for-sale securities
Continuous unrealized losses existing for less than 12 months, fair value	0
Continuous unrealized losses existing for less than 12 months, unrealized losses	0
Continuous unrealized losses existing for greater than 12 months, fair value	0
Continuous unrealized losses existing for greater than 12 months, unrealized losses	0
Total, fair value	0
Total, unrealized losses	0
Municipal
Available-for-sale securities
Continuous unrealized losses existing for less than 12 months, fair value	54,995
Continuous unrealized losses existing for less than 12 months, unrealized losses	(210)
Continuous unrealized losses existing for greater than 12 months, fair value	111
Continuous unrealized losses existing for greater than 12 months, unrealized losses	(4)
Total, fair value	55,106
Total, unrealized losses	(214)
Corporate notes, financial issuers
Available-for-sale securities
Continuous unrealized losses existing for less than 12 months, fair value	24,778
Continuous unrealized losses existing for less than 12 months, unrealized losses	(223)
Continuous unrealized losses existing for greater than 12 months, fair value	45,975
Continuous unrealized losses existing for greater than 12 months, unrealized losses	(1,018)
Total, fair value	70,753
Total, unrealized losses	(1,241)
Corporate notes, other
Available-for-sale securities
Continuous unrealized losses existing for less than 12 months, fair value	0
Continuous unrealized losses existing for less than 12 months, unrealized losses	0
Continuous unrealized losses existing for greater than 12 months, fair value	0
Continuous unrealized losses existing for greater than 12 months, unrealized losses	0
Total, fair value	0
Total, unrealized losses	0
Mortgage-backed securities
Available-for-sale securities
Continuous unrealized losses existing for less than 12 months, fair value	850,161
Continuous unrealized losses existing for less than 12 months, unrealized losses	(25,434)
Continuous unrealized losses existing for greater than 12 months, fair value	0
Continuous unrealized losses existing for greater than 12 months, unrealized losses	0
Total, fair value	850,161
Total, unrealized losses	(25,434)
Collateralized mortgage obligations
Available-for-sale securities
Continuous unrealized losses existing for less than 12 months, fair value	0
Continuous unrealized losses existing for less than 12 months, unrealized losses	0
Continuous unrealized losses existing for greater than 12 months, fair value	0
Continuous unrealized losses existing for greater than 12 months, unrealized losses	0
Total, fair value	0
Total, unrealized losses	$ 0

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Investment Securities (Schedule of Realized Gain (Loss)) (Detail) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2021	Sep. 30, 2020	Sep. 30, 2021	Sep. 30, 2020
Investments, Debt and Equity Securities [Abstract]
Realized gains on investment securities	$ 355	$ 78	$ 1,184	$ 725
Realized losses on investment securities	(5)	(28)	(40)	(525)
Net realized gains on investment securities	350	50	1,144	200
Unrealized gains on equity securities with readily determinable fair value	1	471	2,627	2,118
Unrealized losses on equity securities with readily determinable fair value	(634)	(110)	(1,585)	(3,766)
Net unrealized (losses) gains on equity securities with readily determinable fair value	(633)	361	1,042	(1,648)
Upward adjustments of equity securities without readily determinable fair values	0	0	0	393
Downward adjustments of equity securities without readily determinable fair values	0	0	0	0
Impairment of equity securities without readily determinable fair values	(2,148)	0	(2,178)	(2,085)
Adjustment and impairment, net, of equity securities without readily determinable fair values	(2,148)	0	(2,178)	(1,692)
(Losses) gains on investment securities, net	(2,431)	411	8	(3,140)
Proceeds from sales of available-for-sale securities	189,851	0	192,227	502,676
Proceeds from sales of equity securities with readily determinable fair value	3,500	2,500	9,759	6,530
Proceeds from sales and capital distributions of equity securities without readily determinable fair value	$ 1,330	$ 1,247	$ 2,467	$ 1,691

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Investment Securities (Investments Classified by Contractual Maturity Date) (Detail) - USD ($) $ in Thousands	Sep. 30, 2021	Dec. 31, 2020	Sep. 30, 2020
Available-for-sale securities
Due in one year or less, amortized cost	$ 45,459	$ 343,601	$ 338,702
Due in one to five years, amortized cost	92,457	67,901	76,843
Due in five to ten years, amortized cost	121,099	111,886	108,688
Due after ten years, amortized cost	67,608	95,672	186,718
Amortized Cost	2,347,419	2,960,081	2,845,410
Due in one year or less, fair value	45,549	343,846	338,954
Due in one to five years, fair value	94,134	70,334	78,843
Due in five to ten years, fair value	121,650	112,178	105,968
Due after ten years, fair value	71,660	101,441	193,339
Fair Value	2,373,478	3,055,839	2,946,459
Held-to-maturity securities
Held-to-maturity securities, due in one year or less, amortized cost	5,466	7,138	6,911
Held-to-maturity securities, due in one to five years, amortized cost	75,724	22,217	21,392
Held-to-maturity securities, due in five to ten years, amortized cost	150,908	150,621	144,468
Held-to-maturity securities, due after ten years, amortized cost	186,398	198,690	387,559
Amortized Cost	2,736,805	579,197	560,330
Less: Allowance for credit losses	(83)	(59)	(63)
Held-to-maturity securities, net of allowance for credit losses	2,736,722	579,138	560,267
Held-to-maturity securities, due in one year or less, fair value	5,493	7,186	6,942
Held-to-maturity securities, due in one to five years, fair value	76,173	23,068	21,999
Held-to-maturity securities, due in five to ten years, fair value	157,282	159,293	151,175
Held-to-maturity securities, due after ten years, fair value	186,401	203,689	395,831
Fair Value	2,699,480	593,767	575,947
Mortgage-backed
Available-for-sale securities
Mortgage-backed, without single maturity date, amortized cost	2,020,796	2,341,021	2,134,459
Mortgage-backed, without single maturity date, fair value	2,040,485	2,428,040	2,229,355
Held-to-maturity securities
Mortgage-backed, amortized cost	2,318,309	200,531	0
Mortgage-backed, fair value	$ 2,274,131	$ 200,531	$ 0

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Investment Securities (Narrative) (Detail) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2021 USD ($) security	Sep. 30, 2020 USD ($)	Sep. 30, 2021 USD ($) security	Sep. 30, 2020 USD ($)	Dec. 31, 2020 USD ($)
Investments, Debt and Equity Securities [Abstract]
Equity securities without readily determinable fair value	$ 35,200		$ 35,200
Upward adjustments of equity securities without readily determinable fair values	0	$ 0	0	$ 393
Downward adjustments of equity securities without readily determinable fair values	0	0	0	0
Impairment of equity securities without readily determinable fair values	2,148	0	2,178	2,085
Pledged securities	$ 2,500,000	$ 3,000,000	$ 2,500,000	$ 3,000,000	$ 2,400,000
Number of securities by a single non-government sponsored issuer exceeding 10% of shareholders' equity | security	0		0

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Loans (Summary of Loan Portfolio) (Detail) - USD ($) $ in Thousands	Sep. 30, 2021	Dec. 31, 2020	Sep. 30, 2020
Loans [Line Items]
Total loans, net of unearned income	$ 33,264,043	$ 32,079,073	$ 32,135,555
Total loans, net of unearned income, percentage	100.00%	100.00%	100.00%
Commercial
Loans [Line Items]
Total loans, net of unearned income	$ 11,187,972	$ 11,955,967	$ 12,276,999
Total loans, net of unearned income, percentage	33.00%	37.00%	39.00%
Commercial real estate
Loans [Line Items]
Total loans, net of unearned income	$ 8,885,714	$ 8,494,132	$ 8,423,142
Total loans, net of unearned income, percentage	27.00%	26.00%	26.00%
Home equity
Loans [Line Items]
Total loans, net of unearned income	$ 347,662	$ 425,263	$ 446,274
Total loans, net of unearned income, percentage	1.00%	1.00%	1.00%
Residential real estate
Loans [Line Items]
Total loans, net of unearned income	$ 1,547,736	$ 1,259,598	$ 1,384,810
Total loans, net of unearned income, percentage	5.00%	5.00%	4.00%
Premium finance receivables | Commercial insurance loans
Loans [Line Items]
Total loans, net of unearned income	$ 4,616,977	$ 4,054,489	$ 4,060,144
Total loans, net of unearned income, percentage	14.00%	13.00%	13.00%
Premium finance receivables | Life insurance
Loans [Line Items]
Total loans, net of unearned income	$ 6,655,453	$ 5,857,436	$ 5,488,832
Total loans, net of unearned income, percentage	20.00%	18.00%	17.00%
Consumer and other
Loans [Line Items]
Total loans, net of unearned income	$ 22,529	$ 32,188	$ 55,354
Total loans, net of unearned income, percentage	0.00%	0.00%	0.00%

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Loans (Narrative) (Detail) - USD ($) $ in Thousands	Sep. 30, 2021	Dec. 31, 2020	Sep. 30, 2020
Schedule Of Accretable Yield Activity Related to Loans Acquired With Evidence Of Credit Quality Deterioration Since Origination Table [Line Items]
Loans, net of unearned income	$ 33,264,043	$ 32,079,073	$ 32,135,555
Net deferred loan fees and costs and fair value accounting adjustments	13,100	(3,200)	(42,300)
Net deferred loan fees and costs and fair value accounting adjustments, paid by SBA under PPP	24,800
Commercial
Schedule Of Accretable Yield Activity Related to Loans Acquired With Evidence Of Credit Quality Deterioration Since Origination Table [Line Items]
Loans, net of unearned income	11,187,972	11,955,967	12,276,999
Premium finance receivables
Schedule Of Accretable Yield Activity Related to Loans Acquired With Evidence Of Credit Quality Deterioration Since Origination Table [Line Items]
Unearned income portion of premium finance receivables	124,000	113,100	108,500
Commercial PPP loans | Commercial
Schedule Of Accretable Yield Activity Related to Loans Acquired With Evidence Of Credit Quality Deterioration Since Origination Table [Line Items]
Loans, net of unearned income	$ 1,081,988	$ 2,715,921	$ 3,379,013

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Allowance for Credit Losses (Schedule of Aging of the Company's Loan Portfolio) (Detail) - USD ($) $ in Thousands	Sep. 30, 2021	Dec. 31, 2020	Sep. 30, 2020
Credit Loss [Abstract]
Financial assets held at amortized cost, accrued interest	$ 119,200	$ 121,900	$ 116,900
Financing Receivable, Past Due [Line Items]
Nonaccrual	83,940	114,150	160,751
90+ days and still accruing	6,101	13,363	12,352
Loans, net of unearned income	33,264,043	32,079,073	32,135,555
60-89 days past due
Financing Receivable, Past Due [Line Items]
Loans, net of unearned income	32,863	41,585	49,910
30-59 days past due
Financing Receivable, Past Due [Line Items]
Loans, net of unearned income	128,764	139,128	186,549
Current
Financing Receivable, Past Due [Line Items]
Loans, net of unearned income	33,012,375	31,770,847	31,725,993
Commercial
Financing Receivable, Past Due [Line Items]
Loans, net of unearned income	11,187,972	11,955,967	12,276,999
Commercial | Commercial, industrial and other
Financing Receivable, Past Due [Line Items]
Nonaccrual	26,468	21,743	42,036
90+ days and still accruing	0	307	0
Loans, net of unearned income	10,105,984	9,240,046	8,897,986
Commercial | Commercial, industrial and other | 60-89 days past due
Financing Receivable, Past Due [Line Items]
Loans, net of unearned income	9,768	6,900	2,168
Commercial | Commercial, industrial and other | 30-59 days past due
Financing Receivable, Past Due [Line Items]
Loans, net of unearned income	24,086	44,345	48,271
Commercial | Commercial, industrial and other | Current
Financing Receivable, Past Due [Line Items]
Loans, net of unearned income	10,045,662	9,166,751	8,805,511
Commercial | Commercial PPP loans
Financing Receivable, Past Due [Line Items]
Nonaccrual	0	0	0
90+ days and still accruing	0	0	0
Loans, net of unearned income	1,081,988	2,715,921	3,379,013
Commercial | Commercial PPP loans | 60-89 days past due
Financing Receivable, Past Due [Line Items]
Loans, net of unearned income	0	0	0
Commercial | Commercial PPP loans | 30-59 days past due
Financing Receivable, Past Due [Line Items]
Loans, net of unearned income	1,138	36	0
Commercial | Commercial PPP loans | Current
Financing Receivable, Past Due [Line Items]
Loans, net of unearned income	1,080,850	2,715,885	3,379,013
Commercial real estate
Financing Receivable, Past Due [Line Items]
Loans, net of unearned income	8,885,714	8,494,132	8,423,142
Commercial real estate | Construction and development
Financing Receivable, Past Due [Line Items]
Nonaccrual	1,030	5,633	10,980
90+ days and still accruing	0	0	0
Loans, net of unearned income	1,343,715	1,371,802	1,333,149
Commercial real estate | Construction and development | 60-89 days past due
Financing Receivable, Past Due [Line Items]
Loans, net of unearned income	0	0	0
Commercial real estate | Construction and development | 30-59 days past due
Financing Receivable, Past Due [Line Items]
Loans, net of unearned income	12,631	5,344	12,150
Commercial real estate | Construction and development | Current
Financing Receivable, Past Due [Line Items]
Loans, net of unearned income	1,330,054	1,360,825	1,310,019
Commercial real estate | Non-construction
Financing Receivable, Past Due [Line Items]
Nonaccrual	22,676	40,474	57,835
90+ days and still accruing	0	0	0
Loans, net of unearned income	7,541,999	7,122,330	7,089,993
Commercial real estate | Non-construction | 60-89 days past due
Financing Receivable, Past Due [Line Items]
Loans, net of unearned income	5,395	5,178	8,299
Commercial real estate | Non-construction | 30-59 days past due
Financing Receivable, Past Due [Line Items]
Loans, net of unearned income	67,187	26,772	41,312
Commercial real estate | Non-construction | Current
Financing Receivable, Past Due [Line Items]
Loans, net of unearned income	7,446,741	7,049,906	6,982,547
Home equity
Financing Receivable, Past Due [Line Items]
Nonaccrual	3,449	6,529	6,329
90+ days and still accruing	164	0	0
Loans, net of unearned income	347,662	425,263	446,274
Home equity | 60-89 days past due
Financing Receivable, Past Due [Line Items]
Loans, net of unearned income	340	47	70
Home equity | 30-59 days past due
Financing Receivable, Past Due [Line Items]
Loans, net of unearned income	867	637	1,148
Home equity | Current
Financing Receivable, Past Due [Line Items]
Loans, net of unearned income	342,842	418,050	438,727
Residential real estate
Financing Receivable, Past Due [Line Items]
Nonaccrual	22,633	26,071	22,069
90+ days and still accruing	0	0	0
Loans, net of unearned income	1,547,736	1,259,598	1,384,810
Residential real estate | 60-89 days past due
Financing Receivable, Past Due [Line Items]
Loans, net of unearned income	1,540	1,635	814
Residential real estate | 30-59 days past due
Financing Receivable, Past Due [Line Items]
Loans, net of unearned income	1,076	12,584	2,443
Residential real estate | Current
Financing Receivable, Past Due [Line Items]
Loans, net of unearned income	1,522,487	1,219,308	1,359,484
Premium finance receivables | Commercial insurance loans
Financing Receivable, Past Due [Line Items]
Nonaccrual	7,300	13,264	21,080
90+ days and still accruing	5,811	12,792	12,177
Loans, net of unearned income	4,616,977	4,054,489	4,060,144
Premium finance receivables | Commercial insurance loans | 60-89 days past due
Financing Receivable, Past Due [Line Items]
Loans, net of unearned income	10,642	6,798	7,495
Premium finance receivables | Commercial insurance loans | 30-59 days past due
Financing Receivable, Past Due [Line Items]
Loans, net of unearned income	14,614	18,809	18,839
Premium finance receivables | Commercial insurance loans | Current
Financing Receivable, Past Due [Line Items]
Loans, net of unearned income	4,578,610	4,002,826	4,000,553
Premium finance receivables | Life insurance loans
Financing Receivable, Past Due [Line Items]
Nonaccrual	0	0	0
90+ days and still accruing	0	0	0
Loans, net of unearned income	6,655,453	5,857,436	5,488,832
Premium finance receivables | Life insurance loans | 60-89 days past due
Financing Receivable, Past Due [Line Items]
Loans, net of unearned income	5,162	21,003	30,791
Premium finance receivables | Life insurance loans | 30-59 days past due
Financing Receivable, Past Due [Line Items]
Loans, net of unearned income	7,040	30,465	61,893
Premium finance receivables | Life insurance loans | Current
Financing Receivable, Past Due [Line Items]
Loans, net of unearned income	6,643,251	5,805,968	5,396,148
Consumer and other
Financing Receivable, Past Due [Line Items]
Nonaccrual	384	436	422
90+ days and still accruing	126	264	175
Loans, net of unearned income	22,529	32,188	55,354
Consumer and other | 60-89 days past due
Financing Receivable, Past Due [Line Items]
Loans, net of unearned income	16	24	273
Consumer and other | 30-59 days past due
Financing Receivable, Past Due [Line Items]
Loans, net of unearned income	125	136	493
Consumer and other | Current
Financing Receivable, Past Due [Line Items]
Loans, net of unearned income	$ 21,878	$ 31,328	$ 53,991

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Allowance for Credit Losses (Loan Portfolio by Credit Quality Indicator) (Details) - USD ($) $ in Thousands	Sep. 30, 2021	Dec. 31, 2020	Sep. 30, 2020
Financing Receivable, Credit Quality Indicator [Line Items]
2021	$ 9,593,469
2020	4,641,356
2019	3,465,980
2018	2,582,554
2017	2,244,073
Prior	6,726,820
Revolving	3,984,335
Revolving to Term	25,456
Total Loans	33,264,043	$ 32,079,073	$ 32,135,555
Loans with COVID-19 related modifications	37,500
Commercial, industrial and other
Financing Receivable, Credit Quality Indicator [Line Items]
2021	1,917,957
2020	1,629,151
2019	1,099,593
2018	791,739
2017	523,826
Prior	689,653
Revolving	3,437,168
Revolving to Term	16,897
Total Loans	10,105,984
Commercial PPP loans
Financing Receivable, Credit Quality Indicator [Line Items]
2021	909,139
2020	172,849
2019	0
2018	0
2017	0
Prior	0
Revolving	0
Revolving to Term	0
Total Loans	1,081,988
Construction and development
Financing Receivable, Credit Quality Indicator [Line Items]
2021	214,926
2020	412,094
2019	339,114
2018	151,843
2017	105,319
Prior	93,194
Revolving	24,537
Revolving to Term	2,688
Total Loans	1,343,715
Non-construction
Financing Receivable, Credit Quality Indicator [Line Items]
2021	1,042,866
2020	1,228,255
2019	1,082,005
2018	878,937
2017	818,658
Prior	2,300,881
Revolving	185,418
Revolving to Term	4,979
Total Loans	7,541,999
Home equity
Financing Receivable, Credit Quality Indicator [Line Items]
2021	8
2020	0
2019	0
2018	231
2017	176
Prior	19,799
Revolving	326,556
Revolving to Term	892
Total Loans	347,662	425,263	446,274
Residential real estate
Financing Receivable, Credit Quality Indicator [Line Items]
2021	675,006
2020	303,236
2019	196,459
2018	83,572
2017	96,049
Prior	193,414
Revolving	0
Revolving to Term	0
Total Loans	1,547,736	1,259,598	1,384,810
Premium finance receivables - commercial
Financing Receivable, Credit Quality Indicator [Line Items]
2021	4,490,480
2020	111,704
2019	13,257
2018	1,486
2017	50
Prior	0
Revolving	0
Revolving to Term	0
Total Loans	4,616,977
Premium finance receivables - life
Financing Receivable, Credit Quality Indicator [Line Items]
2021	340,318
2020	782,936
2019	734,280
2018	673,416
2017	699,831
Prior	3,424,672
Revolving	0
Revolving to Term	0
Total Loans	6,655,453
Consumer and other
Financing Receivable, Credit Quality Indicator [Line Items]
2021	2,769
2020	1,131
2019	1,272
2018	1,330
2017	164
Prior	5,207
Revolving	10,656
Revolving to Term	0
Total Loans	22,529	$ 32,188	$ 55,354
Pass
Financing Receivable, Credit Quality Indicator [Line Items]
2021	9,508,713
2020	4,548,827
2019	3,271,496
2018	2,395,263
2017	2,100,615
Prior	6,360,819
Revolving	3,841,713
Revolving to Term	17,903
Total Loans	32,045,349
Pass | Commercial, industrial and other
Financing Receivable, Credit Quality Indicator [Line Items]
2021	1,876,457
2020	1,567,410
2019	1,005,156
2018	711,177
2017	481,140
Prior	620,202
Revolving	3,301,541
Revolving to Term	10,236
Total Loans	9,573,319
Pass | Commercial PPP loans
Financing Receivable, Credit Quality Indicator [Line Items]
2021	909,139
2020	171,213
2019	0
2018	0
2017	0
Prior	0
Revolving	0
Revolving to Term	0
Total Loans	1,080,352
Pass | Construction and development
Financing Receivable, Credit Quality Indicator [Line Items]
2021	214,644
2020	403,619
2019	326,654
2018	131,600
2017	79,752
Prior	88,452
Revolving	24,382
Revolving to Term	2,688
Total Loans	1,271,791
Pass | Non-construction
Financing Receivable, Credit Quality Indicator [Line Items]
2021	1,039,349
2020	1,215,988
2019	997,258
2018	796,708
2017	752,951
Prior	2,053,618
Revolving	185,418
Revolving to Term	4,979
Total Loans	7,046,269
Pass | Home equity
Financing Receivable, Credit Quality Indicator [Line Items]
2021	8
2020	0
2019	0
2018	0
2017	28
Prior	7,050
Revolving	319,725
Revolving to Term	0
Total Loans	326,811
Pass | Residential real estate
Financing Receivable, Credit Quality Indicator [Line Items]
2021	672,993
2020	299,739
2019	193,715
2018	79,703
2017	87,361
Prior	162,230
Revolving	0
Revolving to Term	0
Total Loans	1,495,741
Pass | Premium finance receivables - commercial
Financing Receivable, Credit Quality Indicator [Line Items]
2021	4,453,036
2020	106,802
2019	13,179
2018	1,429
2017	49
Prior	0
Revolving	0
Revolving to Term	0
Total Loans	4,574,495
Pass | Premium finance receivables - life
Financing Receivable, Credit Quality Indicator [Line Items]
2021	340,318
2020	782,936
2019	734,280
2018	673,416
2017	699,250
Prior	3,424,672
Revolving	0
Revolving to Term	0
Total Loans	6,654,872
Pass | Consumer and other
Financing Receivable, Credit Quality Indicator [Line Items]
2021	2,769
2020	1,120
2019	1,254
2018	1,230
2017	84
Prior	4,595
Revolving	10,647
Revolving to Term	0
Total Loans	21,699
Special mention
Financing Receivable, Credit Quality Indicator [Line Items]
2021	54,822
2020	74,796
2019	131,360
2018	123,670
2017	101,923
Prior	189,769
Revolving	111,815
Revolving to Term	6,083
Total Loans	794,238
Special mention | Commercial, industrial and other
Financing Receivable, Credit Quality Indicator [Line Items]
2021	18,468
2020	52,692
2019	67,528
2018	42,470
2017	31,785
Prior	22,358
Revolving	106,454
Revolving to Term	5,841
Total Loans	347,596
Special mention | Commercial PPP loans
Financing Receivable, Credit Quality Indicator [Line Items]
2021	0
2020	1,356
2019	0
2018	0
2017	0
Prior	0
Revolving	0
Revolving to Term	0
Total Loans	1,356
Special mention | Construction and development
Financing Receivable, Credit Quality Indicator [Line Items]
2021	282
2020	8,475
2019	12,144
2018	17,685
2017	23,435
Prior	3,234
Revolving	0
Revolving to Term	0
Total Loans	65,255
Special mention | Non-construction
Financing Receivable, Credit Quality Indicator [Line Items]
2021	3,517
2020	10,307
2019	51,203
2018	61,392
2017	44,193
Prior	155,150
Revolving	0
Revolving to Term	0
Total Loans	325,762
Special mention | Home equity
Financing Receivable, Credit Quality Indicator [Line Items]
2021	0
2020	0
2019	0
2018	0
2017	0
Prior	614
Revolving	5,355
Revolving to Term	242
Total Loans	6,211
Special mention | Residential real estate
Financing Receivable, Credit Quality Indicator [Line Items]
2021	884
2020	269
2019	459
2018	2,123
2017	1,848
Prior	8,331
Revolving	0
Revolving to Term	0
Total Loans	13,914
Special mention | Premium finance receivables - commercial
Financing Receivable, Credit Quality Indicator [Line Items]
2021	31,671
2020	1,693
2019	9
2018	0
2017	1
Prior	0
Revolving	0
Revolving to Term	0
Total Loans	33,374
Special mention | Premium finance receivables - life
Financing Receivable, Credit Quality Indicator [Line Items]
2021	0
2020	0
2019	0
2018	0
2017	581
Prior	0
Revolving	0
Revolving to Term	0
Total Loans	581
Special mention | Consumer and other
Financing Receivable, Credit Quality Indicator [Line Items]
2021	0
2020	4
2019	17
2018	0
2017	80
Prior	82
Revolving	6
Revolving to Term	0
Total Loans	189
Substandard accrual
Financing Receivable, Credit Quality Indicator [Line Items]
2021	20,087
2020	10,331
2019	56,495
2018	58,285
2017	34,289
Prior	129,811
Revolving	29,748
Revolving to Term	1,470
Total Loans	340,516
Substandard accrual | Commercial, industrial and other
Financing Receivable, Credit Quality Indicator [Line Items]
2021	17,805
2020	5,246
2019	21,901
2018	33,886
2017	8,712
Prior	41,590
Revolving	28,641
Revolving to Term	820
Total Loans	158,601
Substandard accrual | Commercial PPP loans
Financing Receivable, Credit Quality Indicator [Line Items]
2021	0
2020	280
2019	0
2018	0
2017	0
Prior	0
Revolving	0
Revolving to Term	0
Total Loans	280
Substandard accrual | Construction and development
Financing Receivable, Credit Quality Indicator [Line Items]
2021	0
2020	0
2019	316
2018	2,558
2017	2,132
Prior	478
Revolving	155
Revolving to Term	0
Total Loans	5,639
Substandard accrual | Non-construction
Financing Receivable, Credit Quality Indicator [Line Items]
2021	0
2020	1,960
2019	33,544
2018	20,725
2017	21,345
Prior	69,718
Revolving	0
Revolving to Term	0
Total Loans	147,292
Substandard accrual | Home equity
Financing Receivable, Credit Quality Indicator [Line Items]
2021	0
2020	0
2019	0
2018	184
2017	67
Prior	9,341
Revolving	949
Revolving to Term	650
Total Loans	11,191
Substandard accrual | Residential real estate
Financing Receivable, Credit Quality Indicator [Line Items]
2021	1,129
2020	2,234
2019	731
2018	887
2017	2,033
Prior	8,434
Revolving	0
Revolving to Term	0
Total Loans	15,448
Substandard accrual | Premium finance receivables - commercial
Financing Receivable, Credit Quality Indicator [Line Items]
2021	1,153
2020	608
2019	2
2018	45
2017	0
Prior	0
Revolving	0
Revolving to Term	0
Total Loans	1,808
Substandard accrual | Premium finance receivables - life
Financing Receivable, Credit Quality Indicator [Line Items]
2021	0
2020	0
2019	0
2018	0
2017	0
Prior	0
Revolving	0
Revolving to Term	0
Total Loans	0
Substandard accrual | Consumer and other
Financing Receivable, Credit Quality Indicator [Line Items]
2021	0
2020	3
2019	1
2018	0
2017	0
Prior	250
Revolving	3
Revolving to Term	0
Total Loans	257
Substandard nonaccrual/doubtful
Financing Receivable, Credit Quality Indicator [Line Items]
2021	9,847
2020	7,402
2019	6,629
2018	5,336
2017	7,246
Prior	46,421
Revolving	1,059
Revolving to Term	0
Total Loans	83,940
Substandard nonaccrual/doubtful | Commercial, industrial and other
Financing Receivable, Credit Quality Indicator [Line Items]
2021	5,227
2020	3,803
2019	5,008
2018	4,206
2017	2,189
Prior	5,503
Revolving	532
Revolving to Term	0
Total Loans	26,468
Substandard nonaccrual/doubtful | Commercial PPP loans
Financing Receivable, Credit Quality Indicator [Line Items]
2021	0
2020	0
2019	0
2018	0
2017	0
Prior	0
Revolving	0
Revolving to Term	0
Total Loans	0
Substandard nonaccrual/doubtful | Construction and development
Financing Receivable, Credit Quality Indicator [Line Items]
2021	0
2020	0
2019	0
2018	0
2017	0
Prior	1,030
Revolving	0
Revolving to Term	0
Total Loans	1,030
Substandard nonaccrual/doubtful | Non-construction
Financing Receivable, Credit Quality Indicator [Line Items]
2021	0
2020	0
2019	0
2018	112
2017	169
Prior	22,395
Revolving	0
Revolving to Term	0
Total Loans	22,676
Substandard nonaccrual/doubtful | Home equity
Financing Receivable, Credit Quality Indicator [Line Items]
2021	0
2020	0
2019	0
2018	47
2017	81
Prior	2,794
Revolving	527
Revolving to Term	0
Total Loans	3,449
Substandard nonaccrual/doubtful | Residential real estate
Financing Receivable, Credit Quality Indicator [Line Items]
2021	0
2020	994
2019	1,554
2018	859
2017	4,807
Prior	14,419
Revolving	0
Revolving to Term	0
Total Loans	22,633
Substandard nonaccrual/doubtful | Premium finance receivables - commercial
Financing Receivable, Credit Quality Indicator [Line Items]
2021	4,620
2020	2,601
2019	67
2018	12
2017	0
Prior	0
Revolving	0
Revolving to Term	0
Total Loans	7,300
Substandard nonaccrual/doubtful | Premium finance receivables - life
Financing Receivable, Credit Quality Indicator [Line Items]
2021	0
2020	0
2019	0
2018	0
2017	0
Prior	0
Revolving	0
Revolving to Term	0
Total Loans	0
Substandard nonaccrual/doubtful | Consumer and other
Financing Receivable, Credit Quality Indicator [Line Items]
2021	0
2020	4
2019	0
2018	100
2017	0
Prior	280
Revolving	0
Revolving to Term	0
Total Loans	$ 384

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Allowance for Credit Losses (Held-to-Maturity Debt Securities by Credit Quality Indication) (Details) - USD ($) $ in Thousands	Sep. 30, 2021	Dec. 31, 2020	Sep. 30, 2020
Debt Securities, Held-to-maturity, Credit Quality Indicator [Line Items]
Amortized Cost	$ 2,736,805	$ 579,197	$ 560,330
Less: Allowance for credit losses	(83)	(59)	(63)
Held-to-maturity securities, net of allowance for credit losses	2,736,722	579,138	560,267
U.S. Government agencies
Debt Securities, Held-to-maturity, Credit Quality Indicator [Line Items]
2021	97,790
2020	25,000
2019	0
2018	50,000
2017	0
Prior	3,353
Amortized Cost	176,143	177,959	349,415
U.S. Government agencies | 1-4 internal grade
Debt Securities, Held-to-maturity, Credit Quality Indicator [Line Items]
2021	97,790
2020	25,000
2019	0
2018	50,000
2017	0
Prior	3,353
Amortized Cost	176,143
U.S. Government agencies | 5-7 internal grade
Debt Securities, Held-to-maturity, Credit Quality Indicator [Line Items]
2021	0
2020	0
2019	0
2018	0
2017	0
Prior	0
Amortized Cost	0
U.S. Government agencies | 8-10 internal grade
Debt Securities, Held-to-maturity, Credit Quality Indicator [Line Items]
2021	0
2020	0
2019	0
2018	0
2017	0
Prior	0
Amortized Cost	0
Municipal
Debt Securities, Held-to-maturity, Credit Quality Indicator [Line Items]
2021	1,371
2020	0
2019	161
2018	7,508
2017	43,358
Prior	138,264
Amortized Cost	190,662	$ 200,707	$ 210,915
Municipal | 1-4 internal grade
Debt Securities, Held-to-maturity, Credit Quality Indicator [Line Items]
2021	1,371
2020	0
2019	161
2018	7,508
2017	43,358
Prior	138,264
Amortized Cost	190,662
Municipal | 5-7 internal grade
Debt Securities, Held-to-maturity, Credit Quality Indicator [Line Items]
2021	0
2020	0
2019	0
2018	0
2017	0
Prior	0
Amortized Cost	0
Municipal | 8-10 internal grade
Debt Securities, Held-to-maturity, Credit Quality Indicator [Line Items]
2021	0
2020	0
2019	0
2018	0
2017	0
Prior	0
Amortized Cost	0
Mortgage-backed securities
Debt Securities, Held-to-maturity, Credit Quality Indicator [Line Items]
2021	2,318,309
2020	0
2019	0
2018	0
2017	0
Prior	0
Amortized Cost	2,318,309
Mortgage-backed securities | 1-4 internal grade
Debt Securities, Held-to-maturity, Credit Quality Indicator [Line Items]
2021	2,318,309
2020	0
2019	0
2018	0
2017	0
Prior	0
Amortized Cost	2,318,309
Mortgage-backed securities | 5-7 internal grade
Debt Securities, Held-to-maturity, Credit Quality Indicator [Line Items]
2021	0
2020	0
2019	0
2018	0
2017	0
Prior	0
Amortized Cost	0
Mortgage-backed securities | 8-10 internal grade
Debt Securities, Held-to-maturity, Credit Quality Indicator [Line Items]
2021	0
2020	0
2019	0
2018	0
2017	0
Prior	0
Amortized Cost	0
Corporate notes
Debt Securities, Held-to-maturity, Credit Quality Indicator [Line Items]
2021	0
2020	13,578
2019	7,419
2018	3,285
2017	3,237
Prior	24,172
Amortized Cost	51,691
Corporate notes | 1-4 internal grade
Debt Securities, Held-to-maturity, Credit Quality Indicator [Line Items]
2021	0
2020	13,578
2019	7,419
2018	3,285
2017	3,237
Prior	24,172
Amortized Cost	51,691
Corporate notes | 5-7 internal grade
Debt Securities, Held-to-maturity, Credit Quality Indicator [Line Items]
2021	0
2020	0
2019	0
2018	0
2017	0
Prior	0
Amortized Cost	0
Corporate notes | 8-10 internal grade
Debt Securities, Held-to-maturity, Credit Quality Indicator [Line Items]
2021	0
2020	0
2019	0
2018	0
2017	0
Prior	0
Amortized Cost	$ 0

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Allowance for Credit Losses (Components of Allowance for Credit Losses) (Details) - USD ($) $ in Thousands	Sep. 30, 2021	Jun. 30, 2021	Dec. 31, 2020	Sep. 30, 2020	Jun. 30, 2020	Dec. 31, 2019
Financing Receivable, Allowance for Credit Loss [Line Items]
Allowance for loan losses and unfunded lending-related commitments losses	$ 296,055	$ 304,031	$ 379,910	$ 388,908	$ 373,109	$ 158,461
Allowance for held-to-maturity securities losses	83		59	63
Allowance for credit losses	296,138		379,969	388,971
Loans
Financing Receivable, Allowance for Credit Loss [Line Items]
Allowance for loan losses and unfunded lending-related commitments losses	248,612		319,374	325,959
Unfunded lending-related commitments
Financing Receivable, Allowance for Credit Loss [Line Items]
Allowance for loan losses and unfunded lending-related commitments losses	47,443		60,536	62,949
Loan losses and unfunded lending-related commitments losses
Financing Receivable, Allowance for Credit Loss [Line Items]
Allowance for loan losses and unfunded lending-related commitments losses	$ 296,055		$ 379,910	$ 388,908

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Allowance for Credit Losses (Summary of Activity in the Allowance for Credit Losses) (Detail) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2021	Sep. 30, 2020	Sep. 30, 2021	Sep. 30, 2020
Financing Receivable, Allowance for Credit Loss [Roll Forward]
Allowance for credit losses at beginning of period	$ 304,031	$ 373,109	$ 379,910	$ 158,461
Other adjustments	(65)	55	(2)	24
Charge-offs	(3,329)	(11,763)	(26,420)	(36,175)
Recoveries	3,327	2,479	11,151	6,203
Provision for credit losses	(7,909)	25,028	(68,584)	213,051
Allowance for credit losses at period end	296,055	388,908	296,055	388,908
Individually measured	10,759	16,367	10,759	16,367
Collectively measured	285,296	372,541	285,296	372,541
Loans at period end, individually evaluated for impairment	109,011	183,667	109,011	183,667
Loans at period end, collectively evaluated for impairment	33,124,053	31,698,373	33,124,053	31,698,373
Loans held at fair value	30,979	253,515	30,979	253,515
Commercial
Financing Receivable, Allowance for Credit Loss [Roll Forward]
Allowance for credit losses at beginning of period	98,507	133,597	94,212	64,920
Other adjustments		0	0	0
Charge-offs	(1,352)	(5,270)	(16,370)	(13,109)
Recoveries	816	428	2,170	924
Provision for credit losses	11,811	(15,861)	29,770	51,120
Allowance for credit losses at period end	109,782	112,894	109,782	112,894
Individually measured	8,222	10,642	8,222	10,642
Collectively measured	101,560	102,252	101,560	102,252
Loans at period end, individually evaluated for impairment	31,001	49,900	31,001	49,900
Loans at period end, collectively evaluated for impairment	11,156,971	12,227,099	11,156,971	12,227,099
Loans held at fair value	0	0	0	0
Commercial real estate
Financing Receivable, Allowance for Credit Loss [Roll Forward]
Allowance for credit losses at beginning of period	158,522	197,126	243,603	68,511
Other adjustments	0	0	0	0
Charge-offs	(406)	(1,529)	(2,798)	(9,323)
Recoveries	373	175	1,087	931
Provision for credit losses	(18,454)	38,238	(101,857)	141,827
Allowance for credit losses at period end	140,035	234,010	140,035	234,010
Individually measured	1,308	4,741	1,308	4,741
Collectively measured	138,727	229,269	138,727	229,269
Loans at period end, individually evaluated for impairment	32,091	79,661	32,091	79,661
Loans at period end, collectively evaluated for impairment	8,853,623	8,343,481	8,853,623	8,343,481
Loans held at fair value	0	0	0	0
Home equity
Financing Receivable, Allowance for Credit Loss [Roll Forward]
Allowance for credit losses at beginning of period	11,207	12,189	11,437	3,878
Other adjustments	0	0	0	0
Charge-offs	(59)	(138)	(201)	(1,378)
Recoveries	313	111	742	451
Provision for credit losses	(522)	(485)	(1,039)	(335)
Allowance for credit losses at period end	10,939	11,677	10,939	11,677
Individually measured	221	196	221	196
Collectively measured	10,718	11,481	10,718	11,481
Loans at period end, individually evaluated for impairment	16,486	22,962	16,486	22,962
Loans at period end, collectively evaluated for impairment	331,176	423,312	331,176	423,312
Loans held at fair value	0	0	0	0
Residential real estate
Financing Receivable, Allowance for Credit Loss [Roll Forward]
Allowance for credit losses at beginning of period	15,684	11,915	12,459	9,800
Other adjustments	0	0	0	0
Charge-offs	(10)	(83)	(15)	(777)
Recoveries	5	25	245	115
Provision for credit losses	593	(67)	3,583	(350)
Allowance for credit losses at period end	16,272	11,790	16,272	11,790
Individually measured	940	680	940	680
Collectively measured	15,332	11,110	15,332	11,110
Loans at period end, individually evaluated for impairment	28,966	30,596	28,966	30,596
Loans at period end, collectively evaluated for impairment	1,487,791	1,100,699	1,487,791	1,100,699
Loans held at fair value	30,979	253,515	30,979	253,515
Premium finance receivables
Financing Receivable, Allowance for Credit Loss [Roll Forward]
Allowance for credit losses at beginning of period	19,899	17,592	17,777	9,647
Other adjustments	(65)	55	(2)	24
Charge-offs	(1,390)	(4,640)	(6,706)	(11,258)
Recoveries	1,728	1,720	6,749	3,663
Provision for credit losses	(1,597)	3,129	757	20,739
Allowance for credit losses at period end	18,575	17,856	18,575	17,856
Individually measured	0	0	0	0
Collectively measured	18,575	17,856	18,575	17,856
Loans at period end, individually evaluated for impairment	0	0	0	0
Loans at period end, collectively evaluated for impairment	11,272,430	9,548,976	11,272,430	9,548,976
Loans held at fair value	0	0	0	0
Consumer and other
Financing Receivable, Allowance for Credit Loss [Roll Forward]
Allowance for credit losses at beginning of period	212	690	422	1,705
Other adjustments	0	0	0	0
Charge-offs	(112)	(103)	(330)	(330)
Recoveries	92	20	158	119
Provision for credit losses	260	74	202	50
Allowance for credit losses at period end	452	681	452	681
Individually measured	68	108	68	108
Collectively measured	384	573	384	573
Loans at period end, individually evaluated for impairment	467	548	467	548
Loans at period end, collectively evaluated for impairment	22,062	54,806	22,062	54,806
Loans held at fair value	$ 0	$ 0	$ 0	0
Cumulative effect, period of adoption, adjustment
Financing Receivable, Allowance for Credit Loss [Roll Forward]
Allowance for credit losses at beginning of period				47,344
Cumulative effect, period of adoption, adjustment | Commercial
Financing Receivable, Allowance for Credit Loss [Roll Forward]
Allowance for credit losses at beginning of period				9,039
Cumulative effect, period of adoption, adjustment | Commercial real estate
Financing Receivable, Allowance for Credit Loss [Roll Forward]
Allowance for credit losses at beginning of period				32,064
Cumulative effect, period of adoption, adjustment | Home equity
Financing Receivable, Allowance for Credit Loss [Roll Forward]
Allowance for credit losses at beginning of period				9,061
Cumulative effect, period of adoption, adjustment | Residential real estate
Financing Receivable, Allowance for Credit Loss [Roll Forward]
Allowance for credit losses at beginning of period				3,002
Cumulative effect, period of adoption, adjustment | Premium finance receivables
Financing Receivable, Allowance for Credit Loss [Roll Forward]
Allowance for credit losses at beginning of period				(4,959)
Cumulative effect, period of adoption, adjustment | Consumer and other
Financing Receivable, Allowance for Credit Loss [Roll Forward]
Allowance for credit losses at beginning of period				$ (863)

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Allowance for Credit Losses (Allowance for Credit Losses Narrative) (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2021	Sep. 30, 2020	Sep. 30, 2021	Sep. 30, 2020	Jun. 30, 2021	Dec. 31, 2020	Jun. 30, 2020	Jan. 01, 2020	Dec. 31, 2019
Financing Receivable, Allowance for Credit Loss [Line Items]
Nonaccrual loans with no related allowance for credit losses	$ 47,300		$ 47,300
Loans reasonably expected to be modified into TDRs			335
Allowance for loan losses	296,055	$ 388,908	296,055	$ 388,908	$ 304,031	$ 379,910	$ 373,109		$ 158,461
Provision for (reversal of) credit losses	(7,909)	25,028	(68,584)	213,051
Loan net charge-offs	2		15,300
Held-to-maturity securities, allowance for credit loss	83	63	83	63		59
Provision for credit losses	(7)		22
Cumulative effect, period of adoption, adjustment
Financing Receivable, Allowance for Credit Loss [Line Items]
Allowance for loan losses								$ 47,300	$ 47,344
Held-to-maturity securities, allowance for credit loss								74
Loans acquired with deteriorated credit quality | Cumulative effect, period of adoption, adjustment
Financing Receivable, Allowance for Credit Loss [Line Items]
Allowance for loan losses								11,000
Loans acquired without deteriorated credit quality | Cumulative effect, period of adoption, adjustment
Financing Receivable, Allowance for Credit Loss [Line Items]
Allowance for loan losses								3,200
Unfunded lending-related commitments
Financing Receivable, Allowance for Credit Loss [Line Items]
Allowance for loan losses	47,443	62,949	47,443	62,949		60,536
Unfunded lending-related commitments | Cumulative effect, period of adoption, adjustment
Financing Receivable, Allowance for Credit Loss [Line Items]
Allowance for loan losses								33,200
Loans
Financing Receivable, Allowance for Credit Loss [Line Items]
Allowance for loan losses	$ 248,612	$ 325,959	$ 248,612	$ 325,959		$ 319,374
Loans | Cumulative effect, period of adoption, adjustment
Financing Receivable, Allowance for Credit Loss [Line Items]
Allowance for loan losses								$ 14,200

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Allowance for Credit Losses (TDRs Narrative) (Detail)	3 Months Ended		9 Months Ended		12 Months Ended
	Sep. 30, 2021 USD ($) contract	Sep. 30, 2020 USD ($) contract	Sep. 30, 2021 USD ($) contract	Sep. 30, 2020 USD ($) contract	Sep. 30, 2021 USD ($) contract	Sep. 30, 2020 USD ($) contract
Financing Receivable, Allowance for Credit Loss [Line Items]
TDRs, count | contract	9	36	45	103	66	152
Foreclosed residential real estate properties	$ 2,500,000		$ 2,500,000		$ 2,500,000
TDRs, balance	$ 559,000	$ 7,596,000	$ 6,884,000	$ 40,410,000	12,345,000	$ 47,173,000
Weighted average extension term	105 months	26 months	108 months	14 months
Weighted average decrease in stated interest rate	1.29%	1.16%	1.51%	1.43%
Interest-only payment terms		5 months	6 months	13 months
Loan forgiveness	$ 0	$ 0	$ 0	$ 453,000
Financing Receivable
Financing Receivable, Allowance for Credit Loss [Line Items]
Loans modified in TDRs	48,500,000		$ 48,500,000		48,500,000
TDRs, count | contract			254
Allowance for loan losses related to impaired loans	2,300,000		$ 2,300,000		2,300,000
Residential Real Estate | Financing Receivable
Financing Receivable, Allowance for Credit Loss [Line Items]
Recorded investment, foreclosure proceedings in process	$ 14,300,000	$ 17,700,000	$ 14,300,000	$ 17,700,000	$ 14,300,000	$ 17,700,000

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Allowance for Credit Losses (Summary of the Post-Modification Balance of TDRs) (Detail) $ in Thousands	3 Months Ended		9 Months Ended		12 Months Ended
	Sep. 30, 2021 USD ($) contract	Sep. 30, 2020 USD ($) contract	Sep. 30, 2021 USD ($) contract	Sep. 30, 2020 USD ($) contract	Sep. 30, 2021 USD ($) contract	Sep. 30, 2020 USD ($) contract
Financing Receivable, Troubled Debt Restructuring [Line Items]
TDRs, count | contract	9	36	45	103	66	152
TDRs, balance | $	$ 559	$ 7,596	$ 6,884	$ 40,410	$ 12,345	$ 47,173
Extension at Below Market Terms
Financing Receivable, Troubled Debt Restructuring [Line Items]
TDRs, count | contract	8	29	43	81
TDRs, balance | $	$ 442	$ 7,339	$ 6,224	$ 31,004
Reduction of Interest Rate
Financing Receivable, Troubled Debt Restructuring [Line Items]
TDRs, count | contract	2	13	15	31
TDRs, balance | $	$ 202	$ 1,829	$ 2,764	$ 5,126
Modification to Interest-only Payments
Financing Receivable, Troubled Debt Restructuring [Line Items]
TDRs, count | contract	0	2	1	12
TDRs, balance | $	$ 0	$ 397	$ 113	$ 9,199
Forgiveness of Debt
Financing Receivable, Troubled Debt Restructuring [Line Items]
TDRs, count | contract	0	0	0	1
TDRs, balance | $	$ 0	$ 0	$ 0	$ 432
Commercial, industrial and other | Commercial, industrial and other
Financing Receivable, Troubled Debt Restructuring [Line Items]
TDRs, count | contract	1	5	6	17	10	22
TDRs, balance | $	$ 1	$ 1,013	$ 547	$ 10,046	$ 2,863	$ 11,476
Commercial, industrial and other | Commercial, industrial and other | Extension at Below Market Terms
Financing Receivable, Troubled Debt Restructuring [Line Items]
TDRs, count | contract	1	5	6	13
TDRs, balance | $	$ 1	$ 1,013	$ 547	$ 5,772
Commercial, industrial and other | Commercial, industrial and other | Reduction of Interest Rate
Financing Receivable, Troubled Debt Restructuring [Line Items]
TDRs, count | contract	0	0	0	0
TDRs, balance | $	$ 0	$ 0	$ 0	$ 0
Commercial, industrial and other | Commercial, industrial and other | Modification to Interest-only Payments
Financing Receivable, Troubled Debt Restructuring [Line Items]
TDRs, count | contract	0	0	0	4
TDRs, balance | $	$ 0	$ 0	$ 0	$ 3,257
Commercial, industrial and other | Commercial, industrial and other | Forgiveness of Debt
Financing Receivable, Troubled Debt Restructuring [Line Items]
TDRs, count | contract	0	0	0	1
TDRs, balance | $	$ 0	$ 0	$ 0	$ 432
Commercial real estate | Non-construction
Financing Receivable, Troubled Debt Restructuring [Line Items]
TDRs, count | contract	0	3	5	17	6	18
TDRs, balance | $	$ 0	$ 1,045	$ 2,944	$ 19,180	$ 3,045	$ 19,432
Commercial real estate | Non-construction | Extension at Below Market Terms
Financing Receivable, Troubled Debt Restructuring [Line Items]
TDRs, count | contract	0	3	4	14
TDRs, balance | $	$ 0	$ 1,045	$ 2,401	$ 14,556
Commercial real estate | Non-construction | Reduction of Interest Rate
Financing Receivable, Troubled Debt Restructuring [Line Items]
TDRs, count | contract	0	0	2	3
TDRs, balance | $	$ 0	$ 0	$ 656	$ 921
Commercial real estate | Non-construction | Modification to Interest-only Payments
Financing Receivable, Troubled Debt Restructuring [Line Items]
TDRs, count | contract	0	1	1	7
TDRs, balance | $	$ 0	$ 207	$ 113	$ 5,752
Commercial real estate | Non-construction | Forgiveness of Debt
Financing Receivable, Troubled Debt Restructuring [Line Items]
TDRs, count | contract	0	0	0	0
TDRs, balance | $	$ 0	$ 0	$ 0	$ 0
Residential real estate and other
Financing Receivable, Troubled Debt Restructuring [Line Items]
TDRs, count | contract	8	28	34	69	50	112
TDRs, balance | $	$ 558	$ 5,538	$ 3,393	$ 11,184	$ 6,437	$ 16,265
Residential real estate and other | Extension at Below Market Terms
Financing Receivable, Troubled Debt Restructuring [Line Items]
TDRs, count | contract	7	21	33	54
TDRs, balance | $	$ 441	$ 5,281	$ 3,276	$ 10,676
Residential real estate and other | Reduction of Interest Rate
Financing Receivable, Troubled Debt Restructuring [Line Items]
TDRs, count | contract	2	13	13	28
TDRs, balance | $	$ 202	$ 1,829	$ 2,108	$ 4,205
Residential real estate and other | Modification to Interest-only Payments
Financing Receivable, Troubled Debt Restructuring [Line Items]
TDRs, count | contract	0	1	0	1
TDRs, balance | $	$ 0	$ 190	$ 0	$ 190
Residential real estate and other | Forgiveness of Debt
Financing Receivable, Troubled Debt Restructuring [Line Items]
TDRs, count | contract	0	0	0	0
TDRs, balance | $	$ 0	$ 0	$ 0	$ 0

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Allowance for Credit Losses (Summary of TDRs Subsequent Default Under the Restructured Terms) (Detail) $ in Thousands	3 Months Ended		9 Months Ended		12 Months Ended
	Sep. 30, 2021 USD ($) contract	Sep. 30, 2020 USD ($) contract	Sep. 30, 2021 USD ($) contract	Sep. 30, 2020 USD ($) contract	Sep. 30, 2021 USD ($) contract	Sep. 30, 2020 USD ($) contract
Troubled Debt Restructuring, Debtor, Subsequent Periods [Line Items]
TDRs, count | contract	9	36	45	103	66	152
TDRs, balance | $	$ 559	$ 7,596	$ 6,884	$ 40,410	$ 12,345	$ 47,173
Payments in default, count | contract	6	31	9	34
Payments in default, balance | $	$ 2,590	$ 21,333	$ 3,915	$ 21,784
Commercial, industrial and other | Commercial, industrial and other
Troubled Debt Restructuring, Debtor, Subsequent Periods [Line Items]
TDRs, count | contract	1	5	6	17	10	22
TDRs, balance | $	$ 1	$ 1,013	$ 547	$ 10,046	$ 2,863	$ 11,476
Payments in default, count | contract	1	7	4	7
Payments in default, balance | $	$ 199	$ 4,607	$ 1,524	$ 4,607
Commercial real estate | Non-construction
Troubled Debt Restructuring, Debtor, Subsequent Periods [Line Items]
TDRs, count | contract	0	3	5	17	6	18
TDRs, balance | $	$ 0	$ 1,045	$ 2,944	$ 19,180	$ 3,045	$ 19,432
Payments in default, count | contract	3	13	3	13
Payments in default, balance | $	$ 2,275	$ 14,595	$ 2,275	$ 14,595
Residential real estate and other
Troubled Debt Restructuring, Debtor, Subsequent Periods [Line Items]
TDRs, count | contract	8	28	34	69	50	112
TDRs, balance | $	$ 558	$ 5,538	$ 3,393	$ 11,184	$ 6,437	$ 16,265
Payments in default, count | contract	2	11	2	14
Payments in default, balance | $	$ 116	$ 2,131	$ 116	$ 2,582

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Goodwill And Other Intangible Assets (Goodwill Assets by Business Segment) (Detail) $ in Thousands	9 Months Ended
	Sep. 30, 2021 USD ($)
Goodwill [Roll Forward]
Beginning balance	$ 645,707
Goodwill Acquired	0
Impairment Loss	0
Goodwill Adjustments	85
Ending balance	645,792
Community banking
Goodwill [Roll Forward]
Beginning balance	536,396
Goodwill Acquired	0
Impairment Loss	0
Goodwill Adjustments	0
Ending balance	536,396
Specialty finance
Goodwill [Roll Forward]
Beginning balance	39,938
Goodwill Acquired	0
Impairment Loss	0
Goodwill Adjustments	85
Ending balance	40,023
Wealth management
Goodwill [Roll Forward]
Beginning balance	69,373
Goodwill Acquired	0
Impairment Loss	0
Goodwill Adjustments	0
Ending balance	$ 69,373

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Goodwill And Other Intangible Assets (Narrative) (Detail) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2021	Sep. 30, 2020	Sep. 30, 2021	Sep. 30, 2020
Indefinite-lived Intangible Assets [Line Items]
Amortization of other intangible assets	$ 1,877	$ 2,701	$ 5,923	$ 8,384
Specialty finance
Indefinite-lived Intangible Assets [Line Items]
Goodwill increase (decrease) for foreign currency translation adjustments			$ 85
Specialty finance | Customer list intangibles
Indefinite-lived Intangible Assets [Line Items]
Amortization period in years, other intangible assets			18 years
Community banking | Core deposit intangibles
Indefinite-lived Intangible Assets [Line Items]
Amortization period in years, other intangible assets			10 years
Wealth management | Customer list intangibles
Indefinite-lived Intangible Assets [Line Items]
Amortization period in years, other intangible assets			10 years

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Goodwill And Other Intangible Assets (Summary of Intangible Assets) (Detail) - USD ($) $ in Thousands	Sep. 30, 2021	Dec. 31, 2020	Sep. 30, 2020
Intangibles with finite lives
Accumulated amortization	$ (53,285)	$ (47,362)	$ (44,728)
Intangibles with indefinite lives
Gross carrying amount	83,403	83,402	83,398
Total net carrying amount	30,118	36,040	38,670
Community banking
Intangibles with indefinite lives
Total net carrying amount	24,166	28,326	29,797
Trademark | Community banking
Intangibles with indefinite lives
Carrying amount	5,800	5,800	5,800
Core deposit intangibles | Community banking
Intangibles with finite lives
Gross carrying amount	55,206	55,206	55,206
Accumulated amortization	(36,840)	(32,680)	(31,209)
Net carrying amount	18,366	22,526	23,997
Customer list intangibles | Specialty finance
Intangibles with finite lives
Gross carrying amount	1,967	1,966	1,962
Accumulated amortization	(1,705)	(1,644)	(1,624)
Net carrying amount	262	322	338
Customer list and other intangibles | Wealth management
Intangibles with finite lives
Gross carrying amount	20,430	20,430	20,430
Accumulated amortization	(14,740)	(13,038)	(11,895)
Net carrying amount	$ 5,690	$ 7,392	$ 8,535

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Goodwill And Other Intangible Assets (Estimated Amortization) (Detail) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2021	Sep. 30, 2020	Sep. 30, 2021	Sep. 30, 2020
Goodwill and Intangible Assets Disclosure [Abstract]
Actual in nine months ended September 30, 2021	$ 1,877	$ 2,701	$ 5,923	$ 8,384
Estimated remaining in 2021	1,809		1,809
Estimated—2022	6,115		6,115
Estimated—2023	4,658		4,658
Estimated—2024	3,259		3,259
Estimated—2025	$ 2,552		$ 2,552

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Mortgage Servicing Rights ("MSRs") (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2021	Sep. 30, 2020	Sep. 30, 2021	Sep. 30, 2020
Servicing Asset at Fair Value, Amount [Roll Forward]
Balance at beginning of the period	$ 127,604	$ 77,203	$ 92,081	$ 85,638
Additions from loans sold with servicing retained	15,546	20,936	57,674	50,734
Estimate of changes in fair value due to:
Early buyout options (“EBO”) exercised	(116)	(367)	(518)	(367)
Payoffs and paydowns	(8,594)	(7,863)	(27,302)	(23,557)
Changes in valuation inputs or assumptions	(888)	(3,002)	11,617	(25,541)
Fair value at end of the period	133,552	86,907	133,552	86,907
Unpaid principal balance of mortgage loans serviced for others	$ 12,720,126	$ 10,139,878	$ 12,720,126	$ 10,139,878

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Deposits (Detail) - USD ($) $ in Thousands	Sep. 30, 2021	Dec. 31, 2020	Sep. 30, 2020
Balance:
Non-interest-bearing	$ 13,255,417	$ 11,748,455	$ 10,409,747
NOW and interest-bearing demand deposits	3,769,825	3,349,021	3,294,071
Wealth management deposits	4,177,820	4,138,712	4,235,583
Money market	10,757,654	9,348,806	9,423,653
Savings	3,861,296	3,531,029	3,415,073
Time certificates of deposit	4,130,546	4,976,628	5,066,295
Total deposits	$ 39,952,558	$ 37,092,651	$ 35,844,422
Mix:
Non-interest-bearing	33.00%	32.00%	29.00%
NOW and interest-bearing demand deposits	9.00%	9.00%	9.00%
Wealth management deposits	11.00%	11.00%	12.00%
Money market	27.00%	25.00%	26.00%
Savings	10.00%	10.00%	10.00%
Time certificates of deposit	10.00%	13.00%	14.00%
Total deposits	100.00%	100.00%	100.00%

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FHLB Advances, Other Borrowings and Subordinated Notes (Summary of Debt) (Details) - USD ($) $ in Thousands	Sep. 30, 2021	Dec. 31, 2020	Sep. 30, 2020
Debt Disclosure [Abstract]
FHLB advances	$ 1,241,071	$ 1,228,429	$ 1,228,422
Other borrowings:
Notes payable	85,668	101,710	107,056
Short-term borrowings	14,051	11,366	7,983
Other	63,770	65,108	65,548
Secured borrowings	341,038	340,744	326,808
Total other borrowings	504,527	518,928	507,395
Subordinated notes	436,811	436,506	436,385
Total FHLB advances, other borrowings and subordinated notes	$ 2,182,409	$ 2,183,863	$ 2,172,202

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FHLB Advances, Other Borrowings and Subordinated Notes (Narrative) (Details) $ in Millions	1 Months Ended								3 Months Ended	9 Months Ended	12 Months Ended	24 Months Ended	48 Months Ended	54 Months Ended	62 Months Ended	65 Months Ended	73 Months Ended	77 Months Ended
	May 31, 2020 CAD ($)	Jan. 31, 2020 CAD ($)	May 31, 2019 CAD ($)	Feb. 28, 2019 CAD ($)	Jun. 30, 2018 CAD ($)	Dec. 31, 2017 CAD ($)	Dec. 31, 2015 CAD ($)	Dec. 31, 2014 CAD ($)	Jun. 30, 2019 USD ($)	Sep. 30, 2021 USD ($) building Rate	Dec. 31, 2014 USD ($)	Dec. 31, 2015 CAD ($)	Dec. 31, 2017 CAD ($)	Jun. 30, 2018 CAD ($)	Feb. 28, 2019 CAD ($)	May 31, 2019 CAD ($)	Jan. 31, 2020 CAD ($)	May 31, 2020 CAD ($)	Dec. 31, 2020 USD ($)	Sep. 30, 2020 USD ($)	Mar. 31, 2020 USD ($)	Jan. 01, 2020	Sep. 18, 2018 USD ($)
Debt Instrument [Line Items]
Notes payable										$ 85,668,000									$ 101,710,000	$ 107,056,000
Short-term borrowings										14,051,000									11,366,000	7,983,000
Other borrowings										63,770,000									65,108,000	65,548,000
Secured borrowings										341,038,000									340,744,000	326,808,000
Subordinated notes										436,811,000									436,506,000	436,385,000
Collateral Pledged
Debt Instrument [Line Items]
Pledged financial instruments										26,100,000
Term Facility
Debt Instrument [Line Items]
Notes payable																							$ 150,000,000
Revolving Credit Facility
Debt Instrument [Line Items]
Notes payable																							50,000,000
Amount outstanding										$ 0
Subordinated debt maturing June 2029
Debt Instrument [Line Items]
Proceeds from the issuance of subordinated notes, net									$ 296,700,000
Base Rate Loan | Base Rate | Term Facility
Debt Instrument [Line Items]
Basis spread on variable rate										0.75%
Base Rate Loan | Base Rate | Revolving Credit Facility
Debt Instrument [Line Items]
Basis spread on variable rate										0.60%
Base Rate Loan | Federal Funds Rate | Revolving Credit Facility
Debt Instrument [Line Items]
Basis spread on variable rate										0.50%
Base Rate Loan | Eurodollar rate | Revolving Credit Facility
Debt Instrument [Line Items]
Basis spread on variable rate										1.00%
Eurodollar Rate Loan | London Interbank Offered Rate (LIBOR) | Term Facility
Debt Instrument [Line Items]
Basis spread on variable rate										1.25%
Eurodollar Rate Loan | London Interbank Offered Rate (LIBOR) | Revolving Credit Facility
Debt Instrument [Line Items]
Basis spread on variable rate										1.35%
Line of Credit
Debt Instrument [Line Items]
Loan agreement with unaffiliated banks																							$ 200,000,000
Revolving Credit Facility
Debt Instrument [Line Items]
Commitment fee | Rate										0.30%
Securities sold under repurchase agreements | Overnight Sweep Collateral
Debt Instrument [Line Items]
Securities sold under agreements to repurchase										$ 14,051,000									11,400,000	8,000,000
Pledged financial instruments										$ 26,058,000
Fixed Rate Promissory Note
Debt Instrument [Line Items]
Number of properties securing debt | building										3
Other borrowings										$ 63,800,000									65,100,000	65,500,000
Fixed interest rate																					3.00%	3.36%
Principal amount of notes																					$ 66,400,000
Secured Debt
Debt Instrument [Line Items]
Secured borrowings										$ 10,000,000
Secured Debt | Receivables Purchase Agreement
Debt Instrument [Line Items]
Fixed interest rate										1.0694%
Proceeds from debt issuance	$ 100	$ 40	$ 70	$ 20	$ 20	$ 10	$ 10	$ 150				$ 160	$ 170	$ 190	$ 210	$ 280	$ 320	$ 420
Secured borrowings										$ 331,000,000									$ 329,900,000	$ 315,100,000
Subordinated Debt | Subordinated debt maturing June 2029
Debt Instrument [Line Items]
Fixed interest rate									4.85%
Principal amount of notes									$ 300,000,000
Subordinated Debt | Subordinated debt maturing June 2024
Debt Instrument [Line Items]
Fixed interest rate											5.00%
Principal amount of notes											$ 140,000,000
Proceeds from debt issuance											$ 139,100,000

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FHLB Advances, Other Borrowings and Subordinated Notes (Summary of Pledged Securities Related to Securities Sold Under Repurchase Agreements) (Details) - Overnight Sweep Collateral - Securities sold under repurchase agreements - USD ($) $ in Thousands	Sep. 30, 2021	Dec. 31, 2020	Sep. 30, 2020
Financial Instruments Owned and Pledged as Collateral [Line Items]
Total collateral pledged	$ 26,058
Excess collateral	12,007
Securities sold under repurchase agreements	14,051	$ 11,400	$ 8,000
U.S. Government agencies
Financial Instruments Owned and Pledged as Collateral [Line Items]
Total collateral pledged	10,773
Mortgage-backed securities
Financial Instruments Owned and Pledged as Collateral [Line Items]
Total collateral pledged	14,941
Collateralized mortgage obligations
Financial Instruments Owned and Pledged as Collateral [Line Items]
Total collateral pledged	$ 344

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Junior Subordinated Debentures (Narrative) (Detail) $ in Thousands	9 Months Ended
	Sep. 30, 2021 USD ($) trust Rate	Dec. 31, 2020 USD ($)	Sep. 30, 2020 USD ($)
Subordinated Borrowing [Line Items]
Percentage ownership interest in subsidiary trusts	100.00%
Number of unconsolidated subsidiary trusts | trust	11
Common securities, approximate percentage of junior subordinated debentures	3.00%
Trust preferred securities, approximate percentage of junior subordinated debentures	97.00%
Junior Subordinated Debentures	$ 253,566	$ 253,566	$ 253,566
Period of deferred payment, not to exceed	60 months
Junior Subordinated Debt
Subordinated Borrowing [Line Items]
Junior Subordinated Debentures	$ 253,566	$ 253,600	$ 253,600
Average contractual rate | Rate	2.32%
Tier two risk based capital	$ 245,500
Interest rate swaps | Junior Subordinated Debt
Subordinated Borrowing [Line Items]
Notional Amount	$ 210,000
Hedge-adjusted contractual interest rate	3.96%

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Junior Subordinated Debentures (Summary of Junior Subordinated Debentures) (Detail) - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2021	Dec. 31, 2020	Sep. 30, 2020
Subordinated Borrowing [Line Items]
Junior Subordinated Debentures	$ 253,566	$ 253,566	$ 253,566
Junior Subordinated Debt
Subordinated Borrowing [Line Items]
Junior Subordinated Debentures	$ 253,566	$ 253,600	$ 253,600
Average contractual rate	2.32%
Junior Subordinated Debt | Wintrust Capital Trust III
Subordinated Borrowing [Line Items]
Common Securities	$ 774
Trust  Preferred Securities	25,000
Junior Subordinated Debentures	$ 25,774
Contractual rate	3.38%
Junior Subordinated Debt | Wintrust Capital Trust III | London Interbank Offered Rate (LIBOR)
Subordinated Borrowing [Line Items]
Rate Structure	3.25%
Junior Subordinated Debt | Wintrust Statutory Trust IV
Subordinated Borrowing [Line Items]
Common Securities	$ 619
Trust  Preferred Securities	20,000
Junior Subordinated Debentures	$ 20,619
Contractual rate	2.93%
Junior Subordinated Debt | Wintrust Statutory Trust IV | London Interbank Offered Rate (LIBOR)
Subordinated Borrowing [Line Items]
Rate Structure	2.80%
Junior Subordinated Debt | Wintrust Statutory Trust V
Subordinated Borrowing [Line Items]
Common Securities	$ 1,238
Trust  Preferred Securities	40,000
Junior Subordinated Debentures	$ 41,238
Contractual rate	2.73%
Junior Subordinated Debt | Wintrust Statutory Trust V | London Interbank Offered Rate (LIBOR)
Subordinated Borrowing [Line Items]
Rate Structure	2.60%
Junior Subordinated Debt | Wintrust Capital Trust VII
Subordinated Borrowing [Line Items]
Common Securities	$ 1,550
Trust  Preferred Securities	50,000
Junior Subordinated Debentures	$ 51,550
Contractual rate	2.07%
Junior Subordinated Debt | Wintrust Capital Trust VII | London Interbank Offered Rate (LIBOR)
Subordinated Borrowing [Line Items]
Rate Structure	1.95%
Junior Subordinated Debt | Wintrust Capital Trust VIII
Subordinated Borrowing [Line Items]
Common Securities	$ 1,238
Trust  Preferred Securities	25,000
Junior Subordinated Debentures	$ 26,238
Contractual rate	1.58%
Junior Subordinated Debt | Wintrust Capital Trust VIII | London Interbank Offered Rate (LIBOR)
Subordinated Borrowing [Line Items]
Rate Structure	1.45%
Junior Subordinated Debt | Wintrust Capital Trust IX
Subordinated Borrowing [Line Items]
Common Securities	$ 1,547
Trust  Preferred Securities	50,000
Junior Subordinated Debentures	$ 51,547
Contractual rate	1.75%
Junior Subordinated Debt | Wintrust Capital Trust IX | London Interbank Offered Rate (LIBOR)
Subordinated Borrowing [Line Items]
Rate Structure	1.63%
Junior Subordinated Debt | Northview Capital Trust I
Subordinated Borrowing [Line Items]
Common Securities	$ 186
Trust  Preferred Securities	6,000
Junior Subordinated Debentures	$ 6,186
Contractual rate	3.13%
Junior Subordinated Debt | Northview Capital Trust I | London Interbank Offered Rate (LIBOR)
Subordinated Borrowing [Line Items]
Rate Structure	3.00%
Junior Subordinated Debt | Town Bankshares Capital Trust I
Subordinated Borrowing [Line Items]
Common Securities	$ 186
Trust  Preferred Securities	6,000
Junior Subordinated Debentures	$ 6,186
Contractual rate	3.13%
Junior Subordinated Debt | Town Bankshares Capital Trust I | London Interbank Offered Rate (LIBOR)
Subordinated Borrowing [Line Items]
Rate Structure	3.00%
Junior Subordinated Debt | First Northwest Capital Trust I
Subordinated Borrowing [Line Items]
Common Securities	$ 155
Trust  Preferred Securities	5,000
Junior Subordinated Debentures	$ 5,155
Contractual rate	3.13%
Junior Subordinated Debt | First Northwest Capital Trust I | London Interbank Offered Rate (LIBOR)
Subordinated Borrowing [Line Items]
Rate Structure	3.00%
Junior Subordinated Debt | Suburban Illinois Capital Trust II
Subordinated Borrowing [Line Items]
Common Securities	$ 464
Trust  Preferred Securities	15,000
Junior Subordinated Debentures	$ 15,464
Contractual rate	1.87%
Junior Subordinated Debt | Suburban Illinois Capital Trust II | London Interbank Offered Rate (LIBOR)
Subordinated Borrowing [Line Items]
Rate Structure	1.75%
Junior Subordinated Debt | Community Financial Shares Statutory Trust II
Subordinated Borrowing [Line Items]
Common Securities	$ 109
Trust  Preferred Securities	3,500
Junior Subordinated Debentures	$ 3,609
Contractual rate	1.74%
Junior Subordinated Debt | Community Financial Shares Statutory Trust II | London Interbank Offered Rate (LIBOR)
Subordinated Borrowing [Line Items]
Rate Structure	1.62%

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Revenue from Contracts with Customers (Disaggregation of Revenue by Source) (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2021	Sep. 30, 2020	Sep. 30, 2021	Sep. 30, 2020
Disaggregation of Revenue [Line Items]
Total revenue from contracts with customers	$ 53,219	$ 42,797	$ 151,720	$ 124,908
Brokerage and insurance product commissions
Disaggregation of Revenue [Line Items]
Total revenue from contracts with customers	5,230	4,563	15,418	13,991
Trust
Disaggregation of Revenue [Line Items]
Total revenue from contracts with customers	5,369	4,179	15,765	13,718
Asset management
Disaggregation of Revenue [Line Items]
Total revenue from contracts with customers	20,932	16,215	60,347	45,825
Wealth management
Disaggregation of Revenue [Line Items]
Total revenue from contracts with customers	31,531	24,957	91,530	73,534
Mortgage broker fees
Disaggregation of Revenue [Line Items]
Total revenue from contracts with customers	270	85	460	312
Service charges on deposit accounts
Disaggregation of Revenue [Line Items]
Total revenue from contracts with customers	14,149	11,497	39,434	33,182
Administrative services
Disaggregation of Revenue [Line Items]
Total revenue from contracts with customers	1,359	1,077	3,843	3,122
Card related fees
Disaggregation of Revenue [Line Items]
Total revenue from contracts with customers	2,513	2,021	6,474	5,506
Other deposit related fees
Disaggregation of Revenue [Line Items]
Total revenue from contracts with customers	$ 3,397	$ 3,160	$ 9,979	$ 9,252

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Revenue from Contracts with Customers (Narrative) (Details) $ in Thousands	9 Months Ended
	Sep. 30, 2021 USD ($) subsidiary	Sep. 30, 2020 USD ($)
Revenue from Contract with Customer [Abstract]
Number of wealth management subsidiaries | subsidiary	4
Revenue recognized from contract liability balance | $	$ 798	$ 1,300

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Revenue from Contracts with Customers (Contract Assets, Contract Liabilities and Receivables from Contracts with Customers) (Details) - USD ($) $ in Thousands	Sep. 30, 2021	Dec. 31, 2020	Sep. 30, 2020
Revenue from Contract with Customer [Abstract]
Contract assets	$ 0	$ 0	$ 0
Contract liabilities	1,632	1,548	1,543
Mortgage broker fees receivable	31	20	28
Administrative services receivable	185	64	191
Wealth management receivable	12,001	10,144	10,232
Card related fees receivable	462	783	201
Total receivables from contracts with customer	$ 12,679	$ 11,011	$ 10,652

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Revenue from Contracts with Customers (Performance Obligations Unsatisfied at End of Period) (Details) $ in Thousands	Sep. 30, 2021 USD ($)
Revenue from Contract with Customer [Abstract]
Performance obligation unsatisfied or partially unsatisfied	$ 1,632
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2021-10-01
Revenue from Contract with Customer [Abstract]
Performance obligation unsatisfied or partially unsatisfied	$ 291
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Estimated remaining performance period	3 months
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2022-01-01
Revenue from Contract with Customer [Abstract]
Performance obligation unsatisfied or partially unsatisfied	$ 591
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Estimated remaining performance period	1 year
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2023-01-01
Revenue from Contract with Customer [Abstract]
Performance obligation unsatisfied or partially unsatisfied	$ 400
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Estimated remaining performance period	1 year
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2024-01-01
Revenue from Contract with Customer [Abstract]
Performance obligation unsatisfied or partially unsatisfied	$ 250
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Estimated remaining performance period	1 year
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2025-01-01
Revenue from Contract with Customer [Abstract]
Performance obligation unsatisfied or partially unsatisfied	$ 100
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Estimated remaining performance period	1 year

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Segment Information (Narrative) (Detail)	9 Months Ended
	Sep. 30, 2021 segment subsidiary
Segment Reporting Information [Line Items]
Number of reportable segments	3
Number of subsidiaries | subsidiary	15
Community banking
Segment Reporting Information [Line Items]
Number of reportable segments	1

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Segment Information (Summary of Segment Information) (Detail) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2021	Sep. 30, 2020	Sep. 30, 2021	Sep. 30, 2020	Dec. 31, 2020
Net interest income:
Net interest income	$ 287,496	$ 255,936	$ 828,981	$ 780,510
Net interest income, change in contribution	$ 31,560		$ 48,471
Net interest income, change in contribution (as a percent)	12.00%		6.00%
Provision for credit losses:
Provision for credit losses	$ (7,916)	25,026	$ (68,562)	213,040
Provision for credit losses, change in contribution	(32,942)		(281,602)
Non-interest income:
Non-interest income	136,474	170,593	452,353	445,828
Non-interest income, change in contribution	$ (34,119)		$ 6,525
Non-interest income, change in contribution (as a percent)	(20.00%)		1.00%
Net revenue:
Net revenue	$ 423,970	426,529	$ 1,281,334	1,226,338
Net revenue, change in contribution	$ (2,559)		$ 54,996
Net revenue, change in contribution (as a percent)	(1.00%)		4.00%
Segment profit:
Segment profit	$ 109,137	107,315	$ 367,394	191,786
Segment profit, change in contribution	$ 1,822		$ 175,608
Segment profit, change in contribution (as a percent)	2.00%		92.00%
Segment assets:
Segment assets	$ 47,832,271	43,731,718	$ 47,832,271	43,731,718	$ 45,080,768
Segment assets, change in contribution	$ 4,100,553
Segment assets, change in contribution (as a percent)	9.00%
Community banking
Segment profit:
Segment profit	$ 68,790	70,584	263,343	97,858
Segment profit, change in contribution	$ (1,794)		165,485
Segment profit, change in contribution (as a percent)	(3.00%)
Segment assets:
Segment assets	$ 38,464,169	35,729,021	38,464,169	35,729,021
Segment assets, change in contribution	$ 2,735,148
Segment assets, change in contribution (as a percent)	8.00%
Specialty finance
Segment profit:
Segment profit	$ 30,202	29,859	77,955	74,680
Segment profit, change in contribution	$ 343		$ 3,275
Segment profit, change in contribution (as a percent)	1.00%		4.00%
Segment assets:
Segment assets	$ 7,918,933	6,732,765	$ 7,918,933	6,732,765
Segment assets, change in contribution	$ 1,186,168
Segment assets, change in contribution (as a percent)	18.00%
Wealth management
Segment profit:
Segment profit	$ 10,145	6,872	26,096	19,248
Segment profit, change in contribution	$ 3,273		$ 6,848
Segment profit, change in contribution (as a percent)	48.00%		36.00%
Segment assets:
Segment assets	$ 1,449,169	1,269,932	$ 1,449,169	1,269,932
Segment assets, change in contribution	$ 179,237
Segment assets, change in contribution (as a percent)	14.00%
Operating Segments
Net interest income:
Net interest income	$ 280,649	250,151	809,124	762,169
Net interest income, change in contribution	$ 30,498		$ 46,955
Net interest income, change in contribution (as a percent)	12.00%		6.00%
Provision for credit losses:
Provision for credit losses	$ (7,916)	25,026	$ (68,562)	213,040
Provision for credit losses, change in contribution	(32,942)		(281,602)
Non-interest income:
Non-interest income	152,275	184,557	497,620	486,992
Non-interest income, change in contribution	$ (32,282)		$ 10,628
Non-interest income, change in contribution (as a percent)	(17.00%)		2.00%
Net revenue:
Net revenue	$ 432,924	434,708	$ 1,306,744	1,249,161
Net revenue, change in contribution	$ (1,784)		$ 57,583
Net revenue, change in contribution (as a percent)	0.00%		5.00%
Operating Segments | Community banking
Net interest income:
Net interest income	$ 220,007	196,803	$ 643,175	609,316
Net interest income, change in contribution	$ 23,204		$ 33,859
Net interest income, change in contribution (as a percent)	12.00%		6.00%
Provision for credit losses:
Provision for credit losses	$ (7,433)	23,342	$ (69,168)	207,168
Provision for credit losses, change in contribution	(30,775)		(276,336)
Non-interest income:
Non-interest income	94,292	136,996	331,970	347,697
Non-interest income, change in contribution	$ (42,704)		$ (15,727)
Non-interest income, change in contribution (as a percent)	(31.00%)		(5.00%)
Net revenue:
Net revenue	$ 314,299	333,799	$ 975,145	957,013
Net revenue, change in contribution	$ (19,500)		$ 18,132
Net revenue, change in contribution (as a percent)	(6.00%)		2.00%
Operating Segments | Specialty finance
Net interest income:
Net interest income	$ 52,659	46,454	$ 142,752	129,581
Net interest income, change in contribution	$ 6,205		$ 13,171
Net interest income, change in contribution (as a percent)	13.00%		10.00%
Provision for credit losses:
Provision for credit losses	$ (483)	1,684	$ 606	5,872
Provision for credit losses, change in contribution	(2,167)		$ (5,266)
Provision for credit losses, change in contribution (as a percent)			(90.00%)
Non-interest income:
Non-interest income	24,426	21,409	$ 69,999	64,548
Non-interest income, change in contribution	$ 3,017		$ 5,451
Non-interest income, change in contribution (as a percent)	14.00%		8.00%
Net revenue:
Net revenue	$ 77,085	67,863	$ 212,751	194,129
Net revenue, change in contribution	$ 9,222		$ 18,622
Net revenue, change in contribution (as a percent)	14.00%		10.00%
Operating Segments | Wealth management
Net interest income:
Net interest income	$ 7,983	6,894	$ 23,197	23,272
Net interest income, change in contribution	$ 1,089		$ (75)
Net interest income, change in contribution (as a percent)	16.00%		0.00%
Provision for credit losses:
Provision for credit losses	$ 0	0	$ 0	0
Provision for credit losses, change in contribution	$ 0		$ 0
Provision for credit losses, change in contribution (as a percent)	0.00%		0.00%
Non-interest income:
Non-interest income	$ 33,557	26,152	$ 95,651	74,747
Non-interest income, change in contribution	$ 7,405		$ 20,904
Non-interest income, change in contribution (as a percent)	28.00%		28.00%
Net revenue:
Net revenue	$ 41,540	33,046	$ 118,848	98,019
Net revenue, change in contribution	$ 8,494		$ 20,829
Net revenue, change in contribution (as a percent)	26.00%		21.00%
Intersegment Eliminations
Net interest income:
Net interest income	$ 6,847	5,785	$ 19,857	18,341
Net interest income, change in contribution	$ 1,062		$ 1,516
Net interest income, change in contribution (as a percent)	18.00%		8.00%
Provision for credit losses:
Provision for credit losses	$ 0	0	$ 0	0
Provision for credit losses, change in contribution	$ 0		$ 0
Provision for credit losses, change in contribution (as a percent)	0.00%		0.00%
Non-interest income:
Non-interest income	$ (15,801)	(13,964)	$ (45,267)	(41,164)
Non-interest income, change in contribution	$ (1,837)		$ (4,103)
Non-interest income, change in contribution (as a percent)	13.00%		10.00%
Net revenue:
Net revenue	$ (8,954)	$ (8,179)	$ (25,410)	$ (22,823)
Net revenue, change in contribution	$ (775)		$ (2,587)
Net revenue, change in contribution (as a percent)	9.00%		11.00%

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Derivative Financial Instruments (Schedule Of Fair Value Of Derivative Financial Instruments) (Detail) - USD ($) $ in Thousands	Sep. 30, 2021	Dec. 31, 2020	Sep. 30, 2020
Derivative [Line Items]
Derivative Assets	$ 191,612	$ 278,423	$ 321,488
Derivative Liabilities	161,314	288,465	326,990
Interest rate contract
Derivative [Line Items]
Derivative Assets	169,315	229,387	253,238
Derivative Liabilities	157,578	275,843	318,853
Designated as hedging instrument
Derivative [Line Items]
Derivative Assets	38,368	8,182	0
Derivative Liabilities	26,481	54,235	65,323
Designated as hedging instrument | Interest rate contract | Interest rate derivatives designated as Cash Flow Hedges
Derivative [Line Items]
Derivative Assets	37,529	8,182	0
Derivative Liabilities	18,054	39,715	49,110
Designated as hedging instrument | Interest rate contract | Interest rate derivatives designated as Fair Value Hedges
Derivative [Line Items]
Derivative Assets	839	0	0
Derivative Liabilities	8,427	14,520	16,213
Not designated as hedging instrument
Derivative [Line Items]
Derivative Assets	153,244	270,241	321,488
Derivative Liabilities	134,833	234,230	261,667
Not designated as hedging instrument | Interest rate contract
Derivative [Line Items]
Derivative Assets	130,947	221,205	253,238
Derivative Liabilities	131,097	221,608	253,530
Not designated as hedging instrument | Interest rate lock commitments
Derivative [Line Items]
Derivative Assets	16,795	48,925	68,201
Derivative Liabilities	753	0	0
Not designated as hedging instrument | Forward commitments to sell mortgage loans
Derivative [Line Items]
Derivative Assets	5,260	0	0
Derivative Liabilities	2,740	12,510	8,088
Not designated as hedging instrument | Foreign exchange contracts
Derivative [Line Items]
Derivative Assets	242	111	49
Derivative Liabilities	$ 243	$ 112	$ 49

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Derivative Financial Instruments (Narrative) (Detail) $ in Millions	9 Months Ended
	Sep. 30, 2021 USD ($) derivative_instrument	Nov. 08, 2021 USD ($) derivative_instrument	Dec. 31, 2020 derivative_instrument	Sep. 30, 2020 derivative_instrument
Derivative Instruments, Gain (Loss) [Line Items]
Amount to be reclassified from accumulated other comprehensive income to interest expense in the next twelve months	$ 14.9
Net derivative liability position, aggregate fair value	115.7
Interest rate contract | Not designated as hedging instrument
Derivative Instruments, Gain (Loss) [Line Items]
Notional amount	1,000.0
Interest rate contract, qualified borrowers | Not designated as hedging instrument
Derivative Instruments, Gain (Loss) [Line Items]
Notional amount	9,200.0
Forward commitments to sell mortgage loans | Not designated as hedging instrument
Derivative Instruments, Gain (Loss) [Line Items]
Notional amount	1,300.0
Interest rate lock commitments | Not designated as hedging instrument
Derivative Instruments, Gain (Loss) [Line Items]
Notional amount	624.8
Foreign exchange contracts | Not designated as hedging instrument
Derivative Instruments, Gain (Loss) [Line Items]
Notional amount	$ 19.3
Covered call options | Not designated as hedging instrument
Derivative Instruments, Gain (Loss) [Line Items]
Number of derivative instruments held | derivative_instrument	0		0	0
Mortgage banking derivatives
Derivative Instruments, Gain (Loss) [Line Items]
Number of derivative instruments held | derivative_instrument	0
Interest rate derivatives designated as Cash Flow Hedges | Interest Rate Swap | Designated as hedging instrument
Derivative Instruments, Gain (Loss) [Line Items]
Number of interest rate derivatives held | derivative_instrument	27
Interest rate derivatives designated as Cash Flow Hedges | Interest Rate Collar | Designated as hedging instrument
Derivative Instruments, Gain (Loss) [Line Items]
Number of interest rate derivatives held | derivative_instrument	1
Interest rate derivatives designated as Fair Value Hedges | Interest Rate Swap | Designated as hedging instrument
Derivative Instruments, Gain (Loss) [Line Items]
Number of interest rate derivatives held | derivative_instrument	15
Notional amount	$ 229.6
Interest rate derivatives designated as Fair Value Hedges | Interest Rate Swap | Designated as hedging instrument | Subsequent Event
Derivative Instruments, Gain (Loss) [Line Items]
Number of interest rate derivatives held | derivative_instrument		1
Notional amount		$ 73.9

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Derivative Financial Instruments (Schedule Of Cash Flow Hedging Instruments) (Detail) - Interest rate derivatives designated as Cash Flow Hedges - Designated as hedging instrument $ in Thousands	Sep. 30, 2021 USD ($)
October 2021
Derivative [Line Items]
Notional Amount	$ 25,000
Fair Value - Asset (Liability)	(9)
November 2021
Derivative [Line Items]
Notional Amount	20,000
Fair Value - Asset (Liability)	(65)
December 2021
Derivative [Line Items]
Notional Amount	165,000
Fair Value - Asset (Liability)	(812)
March 2022
Derivative [Line Items]
Notional Amount	500,000
Fair Value - Asset (Liability)	(110)
May 2022
Derivative [Line Items]
Notional Amount	370,000
Fair Value - Asset (Liability)	(4,335)
June 2022
Derivative [Line Items]
Notional Amount	160,000
Fair Value - Asset (Liability)	(2,156)
July 2022
Derivative [Line Items]
Notional Amount	230,000
Fair Value - Asset (Liability)	(3,218)
August 2022
Derivative [Line Items]
Notional Amount	235,000
Fair Value - Asset (Liability)	(3,795)
March 2023
Derivative [Line Items]
Notional Amount	250,000
Fair Value - Asset (Liability)	(133)
April 2024
Derivative [Line Items]
Notional Amount	250,000
Fair Value - Asset (Liability)	784
July 2027
Derivative [Line Items]
Notional Amount	1,000,000
Fair Value - Asset (Liability)	36,745
September 2023
Derivative [Line Items]
Notional Amount	85,714
Fair Value - Asset (Liability)	(3,421)
Total Cash Flow Hedges
Derivative [Line Items]
Notional Amount	3,290,714
Fair Value - Asset (Liability)	$ 19,475

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Derivative Financial Instruments (Rollforward Of Amounts In Accumulated Other Comprehensive Income Related To Interest Rate Swaps Designated As Cash Flow Hedges) (Detail) - Interest rate contract - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2021	Sep. 30, 2020	Sep. 30, 2021	Sep. 30, 2020
Rollforward of AOCI from Cash Flow Hedging Derivatives [Roll Forward]
Unrealized gain (loss) at beginning of period	$ 10,471	$ (59,503)
Amount reclassified from accumulated other comprehensive income to interest expense on deposits, other borrowings and junior subordinated debentures	6,780	5,667
Amount of income (loss) recognized in other comprehensive income	2,224	4,726
Unrealized gain (loss) at end of period	19,475	(49,110)	$ 19,475	$ (49,110)
Designated as hedging instrument
Rollforward of AOCI from Cash Flow Hedging Derivatives [Roll Forward]
Unrealized gain (loss) at beginning of period			(31,533)	(17,943)
Amount reclassified from accumulated other comprehensive income to interest expense on deposits, other borrowings and junior subordinated debentures			20,342	12,208
Amount of income (loss) recognized in other comprehensive income			30,666	(43,375)
Unrealized gain (loss) at end of period	$ 19,475	$ (49,110)	$ 19,475	$ (49,110)

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Derivative Financial Instruments (Schedule of Carrying Amount of Hedged Assets/(Liabilities)) (Detail) - Interest Rate Swap - Designated as Hedging Instrument $ in Thousands	3 Months Ended	9 Months Ended
	Sep. 30, 2021 USD ($)	Sep. 30, 2021 USD ($)
Loans, net of unearned income
Derivative [Line Items]
Carrying Amount of the Hedged Assets/(Liabilities)	$ 162,775	$ 162,775
Cumulative Amount of Fair Value Hedging Adjustment Included in the Carrying Amount of the Hedged Assets/(Liabilities)	7,815	7,815
Cumulative Amount of Fair Value Hedging Adjustment Remaining for any Hedged Assets (Liabilities) for which Hedge Accounting has been Discontinued	(138)	(138)
Available-for-sale debt securities
Derivative [Line Items]
Carrying Amount of the Hedged Assets/(Liabilities)	1,229	1,229
Cumulative Amount of Fair Value Hedging Adjustment Included in the Carrying Amount of the Hedged Assets/(Liabilities)	84	84
Cumulative Amount of Fair Value Hedging Adjustment Remaining for any Hedged Assets (Liabilities) for which Hedge Accounting has been Discontinued	0	0
Interest and fees on loans
Derivative [Line Items]
Location of (Loss)/Gain Recognized in Income on Derivative	31	61
Interest income - investment securities
Derivative [Line Items]
Location of (Loss)/Gain Recognized in Income on Derivative	$ 0	$ 0

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Derivative Financial Instruments (Summary Amounts Included In Consolidated Statement Of Income Related To Derivatives) (Detail) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2021	Sep. 30, 2020	Sep. 30, 2021	Sep. 30, 2020
Interest rate swaps and caps | Trading gains (losses), net
Derivative Instruments, Gain (Loss) [Line Items]
Gains (losses) on derivative instruments	$ 55	$ 135	$ (56)	$ (996)
Mortgage banking derivatives | Mortgage banking revenue
Derivative Instruments, Gain (Loss) [Line Items]
Gains (losses) on derivative instruments	(4,201)	11,202	(32,160)	71,761
Foreign exchange contracts | Trading gains (losses), net
Derivative Instruments, Gain (Loss) [Line Items]
Gains (losses) on derivative instruments	(1)	5	(9)	(8)
Covered call options | Fees from covered call options
Derivative Instruments, Gain (Loss) [Line Items]
Gains (losses) on derivative instruments	1,157	0	2,545	2,292
Derivative contract held as economic hedge on MSRs | Mortgage banking revenue
Derivative Instruments, Gain (Loss) [Line Items]
Gains (losses) on derivative instruments	$ 0	$ 0	$ 0	$ 4,749

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Derivative Financial Instruments (Summary of Interest Rate Derivatives and Offsetting Positions) (Details) - USD ($) $ in Thousands	Sep. 30, 2021	Dec. 31, 2020	Sep. 30, 2020
Derivative Assets
Derivative Assets	$ 191,612	$ 278,423	$ 321,488
Derivative Liabilities
Gross Amounts Recognized	161,314	288,465	326,990
Interest rate derivatives
Derivative Assets
Derivative Assets	169,315	229,387	253,238
Less: Amounts offset in the Statements of Condition	0	0	0
Net amount presented in the Statements of Condition	169,315	229,387	253,238
Offsetting Derivative Positions	(42,645)	(8,647)	(353)
Collateral Posted	0	0	0
Net Credit Exposure	126,670	220,740	252,885
Derivative Liabilities
Gross Amounts Recognized	157,578	275,843	318,853
Less: Amounts offset in the Statements of Condition	0	0	0
Net amount presented in the Statements of Condition	157,578	275,843	318,853
Offsetting Derivative Positions	(42,645)	(8,647)	(353)
Collateral Posted	(110,440)	(266,832)	(318,071)
Net Credit Exposure	$ 4,493	$ 364	$ 429

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Fair Values of Assets and Liabilities (Narrative) (Detail) $ in Thousands	Sep. 30, 2021 USD ($)	Sep. 30, 2021	Sep. 30, 2021 $ / shares	Jun. 30, 2021 USD ($)	Dec. 31, 2020 USD ($)	Sep. 30, 2020 USD ($)	Jun. 30, 2020 USD ($)	Dec. 31, 2019 USD ($)
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale securities, at fair value	$ 2,373,478				$ 3,055,839	$ 2,946,459
Loans held-for-investment	30,979					253,515
MSRs	133,552			$ 127,604	92,081	86,907	$ 77,203	$ 85,638
Individually assessed loans - foreclosure probable and collateral-dependent	109,011					183,667
Estimate of Fair Value Measurement
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale securities, at fair value	2,373,478				3,055,839	2,946,459
Remaining contractual principal balance outstanding, mortgage loans held-for-sale	900,800				1,200,000	927,100
Portion at Other than Fair Value Measurement
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Individually assessed loans - foreclosure probable and collateral-dependent	30,300
Non-performing
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Mortgage loans held-for-sale, at fair value	122,600				134,100	27,300
Appraisal adjustment - cost of sale | Other real estate owned
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Other real estate owned, measurement input		0.10
Measured at fair value on a recurring basis:
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Loans held-for-investment	30,979				55,134	253,515
MSRs	133,552				92,081	86,907
Mortgage loans held-for-sale, at fair value	925,312				1,272,090	959,671
Measured at fair value on a non-recurring basis:
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Individually assessed loans - foreclosure probable and collateral-dependent	78,653
Other real estate owned	13,845
Level 3 | Measured at fair value on a recurring basis:
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Loans held-for-investment	12,132				10,280	12,613
MSRs	133,552				92,081	86,907
Derivative assets	14,600
Mortgage loans held-for-sale, at fair value	0				0	0
Level 3 | Measured at fair value on a recurring basis: | Discount rate | Weighted Average of Inputs | Discounted cash flows
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
MSRs, measurement input		0.0982
Level 3 | Measured at fair value on a recurring basis: | Discount rate | Weighted Average of Inputs | Loans held-for-investment
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Discount rate		0.0288
Level 3 | Measured at fair value on a recurring basis: | Discount rate | Weighted Average of Inputs | Mortgage servicing rights
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Discount rate		0.0982
Level 3 | Measured at fair value on a recurring basis: | Discount rate | Minimum | Discounted cash flows
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
MSRs, measurement input		0.07
Level 3 | Measured at fair value on a recurring basis: | Discount rate | Minimum | Mortgage servicing rights
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Discount rate		0.07
Level 3 | Measured at fair value on a recurring basis: | Discount rate | Maximum | Discounted cash flows
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
MSRs, measurement input		0.19
Level 3 | Measured at fair value on a recurring basis: | Discount rate | Maximum | Mortgage servicing rights
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Discount rate		0.19
Level 3 | Measured at fair value on a recurring basis: | Constant prepayment rate (CPR) | Loans held-for-investment
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Discount rate		0.1277
Level 3 | Measured at fair value on a recurring basis: | Constant prepayment rate (CPR) | Weighted Average of Inputs | Discounted cash flows
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
MSRs, measurement input		0.1277
Level 3 | Measured at fair value on a recurring basis: | Constant prepayment rate (CPR) | Weighted Average of Inputs | Mortgage servicing rights
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Discount rate		0.1277
Level 3 | Measured at fair value on a recurring basis: | Constant prepayment rate (CPR) | Minimum | Discounted cash flows
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
MSRs, measurement input		0.06
Level 3 | Measured at fair value on a recurring basis: | Constant prepayment rate (CPR) | Minimum | Mortgage servicing rights
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Discount rate		0.06
Level 3 | Measured at fair value on a recurring basis: | Constant prepayment rate (CPR) | Maximum | Discounted cash flows
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
MSRs, measurement input		0.92
Level 3 | Measured at fair value on a recurring basis: | Constant prepayment rate (CPR) | Maximum | Mortgage servicing rights
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Discount rate		0.92
Level 3 | Measured at fair value on a recurring basis: | Credit discount | Weighted Average of Inputs | Loans held-for-investment
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Discount rate		0.0051
Level 3 | Measured at fair value on a recurring basis: | Credit discount | Minimum | Loans held-for-investment
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Discount rate		0
Level 3 | Measured at fair value on a recurring basis: | Credit discount | Maximum | Loans held-for-investment
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Discount rate		0.03
Level 3 | Measured at fair value on a recurring basis: | Cost of servicing | Weighted Average of Inputs | Discounted cash flows
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
MSRs, measurement input		75	75
Level 3 | Measured at fair value on a recurring basis: | Cost of servicing | Minimum | Discounted cash flows
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
MSRs, measurement input | $ / shares			70
Level 3 | Measured at fair value on a recurring basis: | Cost of servicing | Maximum | Discounted cash flows
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
MSRs, measurement input | $ / shares			200
Level 3 | Measured at fair value on a recurring basis: | Cost of servicing - delinquent | Weighted Average of Inputs | Discounted cash flows
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
MSRs, measurement input		287	287
Level 3 | Measured at fair value on a recurring basis: | Cost of servicing - delinquent | Minimum | Discounted cash flows
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
MSRs, measurement input | $ / shares			200
Level 3 | Measured at fair value on a recurring basis: | Cost of servicing - delinquent | Maximum | Discounted cash flows
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
MSRs, measurement input | $ / shares			1,000
Level 3 | Measured at fair value on a recurring basis: | Pull-through rate | Weighted Average of Inputs | Discounted cash flows
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Derivatives, measurement input		0.8628
Level 3 | Measured at fair value on a recurring basis: | Pull-through rate | Minimum | Discounted cash flows
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Derivatives, measurement input		0.01
Level 3 | Measured at fair value on a recurring basis: | Pull-through rate | Maximum | Discounted cash flows
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Derivatives, measurement input		1
Level 3 | Measured at fair value on a non-recurring basis:
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Individually assessed loans - foreclosure probable and collateral-dependent	78,653
Other real estate owned	13,845
Municipal Securities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale securities, at fair value	174,600				146,910	154,195
Municipal Securities | Measured at fair value on a recurring basis:
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale securities, at fair value	174,600				146,910	154,195
Municipal Securities | Level 3 | Measured at fair value on a recurring basis:
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale securities, at fair value	$ 117,724				$ 109,876	$ 119,471

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Fair Values of Assets and Liabilities (Summary of Balances of Assets and Liabilities Measured at Fair Value On A Recurring Basis) (Detail) - USD ($) $ in Thousands	Sep. 30, 2021	Jun. 30, 2021	Dec. 31, 2020	Sep. 30, 2020	Jun. 30, 2020	Dec. 31, 2019
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale securities	$ 2,373,478		$ 3,055,839	$ 2,946,459
Equity securities with readily determinable fair value	88,193		90,862	54,398
Loans held-for-investment	30,979			253,515
MSRs	133,552	$ 127,604	92,081	86,907	$ 77,203	$ 85,638
U.S. Treasury
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale securities	6,000		304,971	280,108
U.S. Government agencies
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale securities	53,275		84,513	178,666
Municipal Securities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale securities	174,600		146,910	154,195
Measured at fair value on a recurring basis:
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Trading account securities	1,103		671	1,720
Equity securities with readily determinable fair value	88,193		90,862	54,398
Mortgage loans held-for-sale, at fair value	925,312		1,272,090	959,671
Loans held-for-investment	30,979		55,134	253,515
MSRs	133,552		92,081	86,907
Nonqualified deferred compensation assets	15,797		15,398	14,197
Derivative assets	191,612		278,423	321,488
Total financial assets	3,760,026		4,860,498	4,638,355
Derivative liabilities	161,314		288,465	326,990
Measured at fair value on a recurring basis: | U.S. Treasury
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale securities	6,000		304,971	280,108
Measured at fair value on a recurring basis: | U.S. Government agencies
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale securities	53,275		84,513	178,666
Measured at fair value on a recurring basis: | Municipal Securities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale securities	174,600		146,910	154,195
Measured at fair value on a recurring basis: | Corporate notes
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale securities	99,118		91,405	104,135
Measured at fair value on a recurring basis: | Mortgage-backed
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale securities	2,040,485		2,428,040	2,229,355
Measured at fair value on a recurring basis: | Level 1
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Trading account securities	0		0	0
Equity securities with readily determinable fair value	80,127		82,796	46,332
Mortgage loans held-for-sale, at fair value	0		0	0
Loans held-for-investment	0		0	0
MSRs	0		0	0
Nonqualified deferred compensation assets	0		0	0
Derivative assets	0		0	0
Total financial assets	86,127		387,767	326,440
Derivative liabilities	0		0	0
Measured at fair value on a recurring basis: | Level 1 | U.S. Treasury
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale securities	6,000		304,971	280,108
Measured at fair value on a recurring basis: | Level 1 | U.S. Government agencies
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale securities	0		0	0
Measured at fair value on a recurring basis: | Level 1 | Municipal Securities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale securities	0		0	0
Measured at fair value on a recurring basis: | Level 1 | Corporate notes
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale securities	0		0	0
Measured at fair value on a recurring basis: | Level 1 | Mortgage-backed
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale securities	0		0	0
Measured at fair value on a recurring basis: | Level 2
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Trading account securities	1,103		671	1,720
Equity securities with readily determinable fair value	8,066		8,066	8,066
Mortgage loans held-for-sale, at fair value	925,312		1,272,090	959,671
Loans held-for-investment	18,847		44,854	240,902
MSRs	0		0	0
Nonqualified deferred compensation assets	15,797		15,398	14,197
Derivative assets	177,000		230,332	254,601
Total financial assets	3,395,879		4,210,437	4,023,908
Derivative liabilities	161,314		288,465	326,990
Measured at fair value on a recurring basis: | Level 2 | U.S. Treasury
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale securities	0		0	0
Measured at fair value on a recurring basis: | Level 2 | U.S. Government agencies
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale securities	53,275		82,547	176,537
Measured at fair value on a recurring basis: | Level 2 | Municipal Securities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale securities	56,876		37,034	34,724
Measured at fair value on a recurring basis: | Level 2 | Corporate notes
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale securities	99,118		91,405	104,135
Measured at fair value on a recurring basis: | Level 2 | Mortgage-backed
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale securities	2,040,485		2,428,040	2,229,355
Measured at fair value on a recurring basis: | Level 3
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Trading account securities	0		0	0
Equity securities with readily determinable fair value	0		0	0
Mortgage loans held-for-sale, at fair value	0		0	0
Loans held-for-investment	12,132		10,280	12,613
MSRs	133,552		92,081	86,907
Nonqualified deferred compensation assets	0		0	0
Derivative assets	14,612		48,091	66,887
Total financial assets	278,020		262,294	288,007
Derivative liabilities	0		0	0
Measured at fair value on a recurring basis: | Level 3 | U.S. Treasury
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale securities	0		0	0
Measured at fair value on a recurring basis: | Level 3 | U.S. Government agencies
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale securities	0		1,966	2,129
Measured at fair value on a recurring basis: | Level 3 | Municipal Securities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale securities	117,724		109,876	119,471
Measured at fair value on a recurring basis: | Level 3 | Corporate notes
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale securities	0		0	0
Measured at fair value on a recurring basis: | Level 3 | Mortgage-backed
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale securities	$ 0		$ 0	$ 0

XML

Fair Values of Assets and Liabilities (Summary of Changes in Level 3 Assets and Liabilities Measured at Fair Value on a Recurring Basis) (Detail) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2021	Sep. 30, 2020	Sep. 30, 2021	Sep. 30, 2020
Loans held-for- investment
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Beginning Balance	$ 11,007	$ 13,953	$ 10,280	$ 9,620
Net Income	54	47	(309)	169
Other comprehensive income (loss)	0	0	0	0
Purchases	0	0	0	0
Issuances	0	0	0	0
Sales	0	0	0	0
Settlements	(588)	(7,877)	(4,565)	(9,337)
Net transfers into/(out of) Level 3	1,659	6,490	6,726	12,161
Ending Balance	12,132	12,613	12,132	12,613
Mortgage servicing rights
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Beginning Balance	127,604	77,203	92,081	85,638
Net Income	5,948	9,704	41,471	1,269
Other comprehensive income (loss)	0	0	0	0
Purchases	0	0	0	0
Issuances	0	0	0	0
Sales	0	0	0	0
Settlements	0	0	0	0
Net transfers into/(out of) Level 3	0	0	0	0
Ending Balance	133,552	86,907	133,552	86,907
Derivative assets
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Beginning Balance	22,570	58,433	48,091	2,631
Net Income	(7,958)	8,454	(33,479)	64,256
Other comprehensive income (loss)	0	0	0	0
Purchases	0	0	0	0
Issuances	0	0	0	0
Sales	0	0	0	0
Settlements	0	0	0	0
Net transfers into/(out of) Level 3	0	0	0	0
Ending Balance	14,612	66,887	14,612	66,887
Municipal Securities
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Beginning Balance	117,606	117,255	109,876	111,950
Net Income	0	0	0	0
Other comprehensive income (loss)	(757)	64	(3,199)	(1,731)
Purchases	875	3,221	19,038	16,093
Issuances	0	0	0	0
Sales	0	0	0	0
Settlements	0	(1,069)	(7,991)	(6,841)
Net transfers into/(out of) Level 3	0	0	0	0
Ending Balance	117,724	119,471	117,724	119,471
U.S. Government agencies
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Beginning Balance	0	2,293	1,966	2,646
Net Income	0	0	(4)	0
Other comprehensive income (loss)	0	(7)	(24)	(46)
Purchases	0	0	0	0
Issuances	0	0	0	0
Sales	0	0	0	0
Settlements	0	(157)	(1,938)	(471)
Net transfers into/(out of) Level 3	0	0	0	0
Ending Balance	$ 0	$ 2,129	$ 0	$ 2,129

XML

Fair Values of Assets and Liabilities (Summary of Assets Measured at Fair Value on a Nonrecurring Basis) (Detail) - USD ($) $ in Thousands	3 Months Ended	9 Months Ended
	Sep. 30, 2021	Sep. 30, 2021	Sep. 30, 2020
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Individually assessed loans - foreclosure probable and collateral-dependent	$ 109,011	$ 109,011	$ 183,667
Fair value losses - individually assessed loans - foreclosure probable and collateral-dependent	1,425	17,956
Fair value losses - other real estate owned	93	1,012
Fair value losses	1,518	18,968
Measured at fair value on a non-recurring basis:
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Individually assessed loans - foreclosure probable and collateral-dependent	78,653	78,653
Other real estate owned	13,845	13,845
Total financial assets	92,498	92,498
Measured at fair value on a non-recurring basis: | Level 1
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Individually assessed loans - foreclosure probable and collateral-dependent	0	0
Other real estate owned	0	0
Total financial assets	0	0
Measured at fair value on a non-recurring basis: | Level 2
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Individually assessed loans - foreclosure probable and collateral-dependent	0	0
Other real estate owned	0	0
Total financial assets	0	0
Measured at fair value on a non-recurring basis: | Level 3
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Individually assessed loans - foreclosure probable and collateral-dependent	78,653	78,653
Other real estate owned	13,845	13,845
Total financial assets	$ 92,498	$ 92,498

XML

Fair Values of Assets and Liabilities (Schedule of Valuation Techniques and Significant Unobservable Inputs Used to Measure Both Recurring and Non-Recurring) (Detail) $ in Thousands	Sep. 30, 2021 USD ($)	Sep. 30, 2021	Sep. 30, 2021 $ / shares	Jun. 30, 2021 USD ($)	Dec. 31, 2020 USD ($)	Sep. 30, 2020 USD ($)	Jun. 30, 2020 USD ($)	Dec. 31, 2019 USD ($)
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Available-for-sale securities, at fair value	$ 2,373,478				$ 3,055,839	$ 2,946,459
Loans held-for-investment	30,979					253,515
MSRs	133,552			$ 127,604	92,081	86,907	$ 77,203	$ 85,638
Individually assessed loans - foreclosure probable and collateral-dependent	109,011					183,667
Municipal Securities
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Available-for-sale securities, at fair value	174,600				146,910	154,195
Measured at fair value on a recurring basis:
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Loans held-for-investment	30,979				55,134	253,515
MSRs	133,552				92,081	86,907
Derivative assets	191,612				278,423	321,488
Measured at fair value on a recurring basis: | Municipal Securities
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Available-for-sale securities, at fair value	174,600				146,910	154,195
Measured at fair value on a non-recurring basis:
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Individually assessed loans - foreclosure probable and collateral-dependent	78,653
Other real estate owned	13,845
Level 3 | Measured at fair value on a recurring basis:
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Loans held-for-investment	12,132				10,280	12,613
MSRs	133,552				92,081	86,907
Derivative assets	14,612				48,091	66,887
Level 3 | Measured at fair value on a recurring basis: | Municipal Securities
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Available-for-sale securities, at fair value	117,724				$ 109,876	$ 119,471
Level 3 | Measured at fair value on a non-recurring basis:
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Individually assessed loans - foreclosure probable and collateral-dependent	78,653
Other real estate owned	$ 13,845
Discount rate | Discounted cash flows | Level 3 | Measured at fair value on a recurring basis:
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Loans held-for-investment, measurement input		2.88
Discount rate | Discounted cash flows | Level 3 | Measured at fair value on a recurring basis: | Minimum
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
MSRs, measurement input		0.07
Discount rate | Discounted cash flows | Level 3 | Measured at fair value on a recurring basis: | Maximum
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
MSRs, measurement input		0.19
Discount rate | Discounted cash flows | Level 3 | Measured at fair value on a recurring basis: | Weighted Average of Inputs
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Loans held-for-investment, measurement input		0.0288
MSRs, measurement input		0.0982
Credit discount | Discounted cash flows | Level 3 | Measured at fair value on a recurring basis: | Minimum
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Loans held-for-investment, measurement input		0
Credit discount | Discounted cash flows | Level 3 | Measured at fair value on a recurring basis: | Maximum
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Loans held-for-investment, measurement input		0.03
Credit discount | Discounted cash flows | Level 3 | Measured at fair value on a recurring basis: | Weighted Average of Inputs
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Loans held-for-investment, measurement input		0.0051
Constant prepayment rate (CPR) | Discounted cash flows | Level 3 | Measured at fair value on a recurring basis:
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Loans held-for-investment, measurement input		0.1277
Constant prepayment rate (CPR) | Discounted cash flows | Level 3 | Measured at fair value on a recurring basis: | Minimum
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
MSRs, measurement input		0.06
Constant prepayment rate (CPR) | Discounted cash flows | Level 3 | Measured at fair value on a recurring basis: | Maximum
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
MSRs, measurement input		0.92
Constant prepayment rate (CPR) | Discounted cash flows | Level 3 | Measured at fair value on a recurring basis: | Weighted Average of Inputs
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Loans held-for-investment, measurement input		0.1277
MSRs, measurement input		0.1277
Cost of servicing | Discounted cash flows | Level 3 | Measured at fair value on a recurring basis: | Minimum
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
MSRs, measurement input | $ / shares			70
Cost of servicing | Discounted cash flows | Level 3 | Measured at fair value on a recurring basis: | Maximum
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
MSRs, measurement input | $ / shares			200
Cost of servicing | Discounted cash flows | Level 3 | Measured at fair value on a recurring basis: | Weighted Average of Inputs
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
MSRs, measurement input		75	75
Cost of servicing - delinquent | Discounted cash flows | Level 3 | Measured at fair value on a recurring basis: | Minimum
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
MSRs, measurement input | $ / shares			200
Cost of servicing - delinquent | Discounted cash flows | Level 3 | Measured at fair value on a recurring basis: | Maximum
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
MSRs, measurement input | $ / shares			1,000
Cost of servicing - delinquent | Discounted cash flows | Level 3 | Measured at fair value on a recurring basis: | Weighted Average of Inputs
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
MSRs, measurement input		287	287
Pull-through rate | Discounted cash flows | Level 3 | Measured at fair value on a recurring basis: | Minimum
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Derivatives, measurement input		0.01
Pull-through rate | Discounted cash flows | Level 3 | Measured at fair value on a recurring basis: | Maximum
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Derivatives, measurement input		1
Pull-through rate | Discounted cash flows | Level 3 | Measured at fair value on a recurring basis: | Weighted Average of Inputs
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Derivatives, measurement input		0.8628
Appraisal adjustment - cost of sale | Appraisal value | Level 3 | Measured at fair value on a non-recurring basis:
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Impaired loans—collateral based, measurement input		0.10
Other real estate owned, measurement input		0.10
Appraisal adjustment - cost of sale | Appraisal value | Level 3 | Measured at fair value on a non-recurring basis: | Weighted Average of Inputs
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Impaired loans—collateral based, measurement input		0.1000
Other real estate owned, measurement input		0.1000

XML

Fair Values of Assets and Liabilities (Summary Of Carrying Amounts And Estimated Fair Values Of Financial Instruments) (Detail) - USD ($) $ in Thousands	Sep. 30, 2021	Dec. 31, 2020	Sep. 30, 2020
Financial Assets:
Interest-bearing deposits with banks	$ 5,232,315	$ 4,802,527	$ 3,825,823
Available-for-sale securities	2,373,478	3,055,839	2,946,459
Held-to-maturity securities	2,699,480	593,767	575,947
Equity securities with readily determinable fair value	88,193	90,862	54,398
FHLB and FRB stock, at cost	135,408	135,588	135,568
Brokerage customer receivables	26,378	17,436	16,818
Mortgage loans held-for-sale, at fair value	925,312	1,272,090	959,671
Accrued interest receivable and other	1,166,917	1,351,455	1,424,728
Financial Liabilities
FHLB advances	1,241,071	1,228,429	1,228,422
Other borrowings	504,527	518,928	507,395
Subordinated notes	436,811	436,506	436,385
Junior subordinated debentures	253,566	253,566	253,566
Carrying Value
Financial Assets:
Cash and cash equivalents	462,299	322,474	308,695
Interest-bearing deposits with banks	5,232,315	4,802,527	3,825,823
Available-for-sale securities	2,373,478	3,055,839	2,946,459
Held-to-maturity securities	2,736,722	579,138	560,267
Trading account securities	1,103	671	1,720
Equity securities with readily determinable fair value	88,193	90,862	54,398
FHLB and FRB stock, at cost	135,408	135,588	135,568
Brokerage customer receivables	26,378	17,436	16,818
Mortgage loans held-for-sale, at fair value	925,312	1,272,090	959,671
Nonqualified deferred compensation assets	15,797	15,398	14,197
Derivative assets	191,612	278,423	321,488
Accrued interest receivable and other	272,293	272,339	272,940
Total financial assets	45,724,953	42,921,858	41,553,599
Financial Liabilities
Non-maturity deposits	35,822,012	32,116,023	30,778,127
Deposits with stated maturities	4,130,546	4,976,628	5,066,295
FHLB advances	1,241,071	1,228,429	1,228,422
Other borrowings	504,527	518,928	507,395
Subordinated notes	436,811	436,506	436,385
Junior subordinated debentures	253,566	253,566	253,566
Derivative liabilities	161,314	288,465	326,990
Accrued interest payable	15,030	15,645	21,310
Total financial liabilities	42,564,877	39,834,190	38,618,490
Fair Value
Financial Assets:
Cash and cash equivalents	462,299	322,474	308,695
Interest-bearing deposits with banks	5,232,315	4,802,527	3,825,823
Available-for-sale securities	2,373,478	3,055,839	2,946,459
Held-to-maturity securities	2,699,480	593,767	575,947
Trading account securities	1,103	671	1,720
Equity securities with readily determinable fair value	88,193	90,862	54,398
FHLB and FRB stock, at cost	135,408	135,588	135,568
Brokerage customer receivables	26,378	17,436	16,818
Mortgage loans held-for-sale, at fair value	925,312	1,272,090	959,671
Nonqualified deferred compensation assets	15,797	15,398	14,197
Derivative assets	191,612	278,423	321,488
Accrued interest receivable and other	272,293	272,339	272,940
Total financial assets	45,731,335	42,784,231	41,410,798
Financial Liabilities
Non-maturity deposits	35,822,012	32,116,023	30,778,127
Deposits with stated maturities	4,124,199	4,969,849	5,063,732
FHLB advances	1,164,168	1,172,315	1,207,203
Other borrowings	504,527	518,928	507,395
Subordinated notes	474,171	473,093	473,825
Junior subordinated debentures	207,675	204,713	208,333
Derivative liabilities	161,314	288,465	326,990
Accrued interest payable	15,030	15,645	21,310
Total financial liabilities	42,473,096	39,759,031	38,586,915
Loans held-for-investment, at fair value | Carrying Value
Financial Assets:
Total loans	30,979	55,134	253,515
Loans held-for-investment, at fair value | Fair Value
Financial Assets:
Total loans	30,979	55,134	253,515
Loans held-for-investment, at amortized cost | Carrying Value
Financial Assets:
Total loans	33,233,064	32,023,939	31,882,040
Loans held-for-investment, at amortized cost | Fair Value
Financial Assets:
Total loans	$ 33,276,688	$ 31,871,683	$ 31,723,559

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Stock-Based Compensation Plans (Narrative) (Detail) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2021	Sep. 30, 2020	Sep. 30, 2021	Sep. 30, 2020	May 31, 2015
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Shares approved for issuance (in shares)					5,485,000
Shares available for future grants (in shares)	976,000		976,000
Number of stock options granted			0	0
Stock-based compensation expense	$ 3.2	$ 1.3	$ 9.4	$ (1.0)
Aggregate intrinsic value of options exercised			7.9	2.7
Cash received from option exercises			$ 10.6	$ 4.1
Stock options
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Term			7 years
Stock options | Minimum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Award vesting period			3 years
Stock options | Maximum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Award vesting period			5 years
Restricted shares | Minimum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Award vesting period			1 year
Restricted shares | Maximum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Award vesting period			5 years
LTIP awards
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Award vesting period			3 years
Term			7 years
LTIP awards | Minimum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Percentage of performance based award payouts			0.00%
LTIP awards | Maximum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Percentage of performance based award payouts			150.00%
Performance-based stock
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Award vesting period			3 years
Performance period			3 years

XML

Stock-Based Compensation Plans (Summary Of Stock Option Activity) (Detail) - USD ($) $ / shares in Units, $ in Thousands	9 Months Ended
	Sep. 30, 2021	Sep. 30, 2020
Common Shares
Common shares, outstanding at beginning of the period (in shares)	520,663	755,332
Common shares, granted (in shares)	0	0
Common shares, exercised (in shares)	(245,286)	(104,703)
Common shares, forfeited or canceled (in shares)	(590)	(5,608)
Common shares, outstanding at end of the period (in shares)	274,787	645,021
Common shares, exercisable (in shares)	273,238	637,120
Weighted Average Strike Price
Weighted average strike price, outstanding at beginning of period (usd per share)	$ 42.47	$ 42.43
Weighted average strike price, granted (usd per share)	0	0
Weighted average strike price, exercised (usd per share)	43.05	38.71
Weighted average strike price, forfeited or canceled (usd per share)	46.86	44.34
Weighted average strike price, outstanding at end of period (usd per share)	41.95	43.02
Weighted average strike price, exercisable (usd per share)	$ 41.92	$ 43.01
Remaining contractual term, outstanding	1 year 4 months 24 days	1 year 10 months 24 days
Remaining contractual term, exercisable	1 year 4 months 24 days	1 year 9 months 18 days
Intrinsic value, outstanding	$ 10,557	$ 52
Intrinsic value, exercisable	$ 10,506	$ 52

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Stock-Based Compensation Plans (Summary Of Plans' Restricted Share And Performance-Vested Stock Award Activity) (Detail) - $ / shares	9 Months Ended
	Sep. 30, 2021	Sep. 30, 2020
Restricted shares
Common Shares
Outstanding, beginning of the period (in shares)	234,794	144,328
Granted (in shares)	268,429	113,156
Vested and issued (in shares)	(13,120)	(13,917)
Expired, canceled or forfeited (in shares)	(12,624)	(6,547)
Outstanding, end of the period (in shares)	477,479	237,020
Vested, but deferred (in shares)	95,215	93,514
Weighted Average Grant-Date Fair Value
Beginning weighted average grant-date fair value (usd per share)	$ 59.02	$ 60.37
Weighted average grant-date fair value, granted (usd per share)	63.22	61.32
Weighted average grant-date fair value, vested and issued (usd per share)	72.01	77.77
Weighted average grant-date fair value, expired, canceled or forfeited (usd per share)	63.55	73.71
Ending weighted average grant-date fair value (usd per share)	60.90	59.43
Weighted average grant-date fair value, vested, but deferred (usd per share)	$ 52.39	$ 52.08
Performance-based stock
Common Shares
Outstanding, beginning of the period (in shares)	482,608	465,515
Granted (in shares)	208,732	169,864
Added by performance factor at vesting (in shares)	0	48,831
Vested and issued (in shares)	0	(180,789)
Expired, canceled or forfeited (in shares)	(132,998)	(18,727)
Outstanding, end of the period (in shares)	558,342	484,694
Vested, but deferred (in shares)	35,040	34,441
Weighted Average Grant-Date Fair Value
Beginning weighted average grant-date fair value (usd per share)	$ 71.15	$ 74.37
Weighted average grant-date fair value, granted (usd per share)	58.97	63.62
Weighted average grant-date fair value, added by performance factor at vesting (usd per share)	0	72.59
Weighted average grant-date fair value, vested and issued (usd per share)	0	72.59
Weighted average grant-date fair value, expired, canceled or forfeited (usd per share)	86.51	72.66
Ending weighted average grant-date fair value (usd per share)	62.94	71.15
Weighted average grant-date fair value, vested, but deferred (usd per share)	$ 43.53	$ 43.07

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Shareholders' Equity And Earnings Per Share (Narrative) (Detail) - USD ($) $ / shares in Units, $ in Millions	1 Months Ended					3 Months Ended		9 Months Ended
	Jul. 31, 2021	Apr. 30, 2021	Jan. 31, 2021	May 31, 2020	Jun. 30, 2015	Sep. 30, 2021	Sep. 30, 2020	Sep. 30, 2021	Sep. 30, 2020	Dec. 31, 2020
Temporary Equity [Line Items]
Cash dividends declared per common share (usd per share)	$ 0.31	$ 0.31	$ 0.31			$ 0.31	$ 0.28	$ 0.93	$ 0.84
Common stock dividends per share declared annualized (usd per share)	$ 1.24	$ 1.24	$ 1.24
Series D Preferred Stock
Temporary Equity [Line Items]
Sale of stock (in shares)					5,000,000
Preferred stock, liquidation value per share (usd per share)					$ 25	25	25	25	25	$ 25
Sale of stock, proceeds					$ 125.0
Preferred stock, dividend rate, percentage					6.50%
Series E Preferred Stock
Temporary Equity [Line Items]
Sale of stock (in shares)				11,500
Preferred stock, liquidation value per share (usd per share)				$ 25,000		$ 25,000	$ 25,000	$ 25,000	$ 25,000	$ 25,000
Sale of stock, proceeds				$ 287.5
Preferred stock, dividend rate, percentage				6.875%
Depositary Shares
Temporary Equity [Line Items]
Sale of stock (in shares)				11,500,000
London Interbank Offered Rate (LIBOR) | Series D Preferred Stock
Temporary Equity [Line Items]
Preferred stock, dividend rate, percentage, variable spread					4.06%

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Shareholders' Equity And Earnings Per Share (Components Of Other Comprehensive Income (Loss)) (Detail) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2021	Sep. 30, 2020	Sep. 30, 2021	Sep. 30, 2020
Activity Accumulated Other Comprehensive Income [Roll Forward]
Beginning balance	$ 4,339,011	$ 3,990,218	$ 4,115,995	$ 3,691,250
Other comprehensive (loss) income during the period, net of tax, before reclassifications	(13,393)	(4,325)	(27,933)	25,160
Amount reclassified from accumulated other comprehensive income (loss) into net income, net of tax	4,717	4,121	14,084	8,808
Amount reclassified from accumulated other comprehensive income (loss) related to amortization of unrealized gains on investment securities transferred to held-to-maturity from available-for-sale, net of tax	(40)	(40)	(116)	(131)
Total other comprehensive (loss) income	(8,716)	(244)	(13,965)	33,837
Ending balance	4,410,317	4,074,089	4,410,317	4,074,089
Accumulated Unrealized Gains (Losses) on Securities
Activity Accumulated Other Comprehensive Income [Roll Forward]
Beginning balance	30,189	85,506	70,737	14,982
Other comprehensive (loss) income during the period, net of tax, before reclassifications	(10,374)	(10,682)	(50,265)	60,043
Amount reclassified from accumulated other comprehensive income (loss) into net income, net of tax	(256)	(36)	(837)	(146)
Amount reclassified from accumulated other comprehensive income (loss) related to amortization of unrealized gains on investment securities transferred to held-to-maturity from available-for-sale, net of tax	(40)	(40)	(116)	(131)
Total other comprehensive (loss) income	(10,670)	(10,758)	(51,218)	59,766
Ending balance	19,519	74,748	19,519	74,748
Accumulated Unrealized Gains (Losses) on Derivative Instruments
Activity Accumulated Other Comprehensive Income [Roll Forward]
Beginning balance	7,720	(43,606)	(23,090)	(13,141)
Other comprehensive (loss) income during the period, net of tax, before reclassifications	1,631	3,466	22,493	(31,796)
Amount reclassified from accumulated other comprehensive income (loss) into net income, net of tax	4,973	4,157	14,921	8,954
Amount reclassified from accumulated other comprehensive income (loss) related to amortization of unrealized gains on investment securities transferred to held-to-maturity from available-for-sale, net of tax	0	0	0	0
Total other comprehensive (loss) income	6,604	7,623	37,414	(22,842)
Ending balance	14,324	(35,983)	14,324	(35,983)
Accumulated Foreign Currency Translation Adjustments
Activity Accumulated Other Comprehensive Income [Roll Forward]
Beginning balance	(27,776)	(42,497)	(32,265)	(36,519)
Other comprehensive (loss) income during the period, net of tax, before reclassifications	(4,650)	2,891	(161)	(3,087)
Amount reclassified from accumulated other comprehensive income (loss) into net income, net of tax	0	0	0	0
Amount reclassified from accumulated other comprehensive income (loss) related to amortization of unrealized gains on investment securities transferred to held-to-maturity from available-for-sale, net of tax	0	0	0	0
Total other comprehensive (loss) income	(4,650)	2,891	(161)	(3,087)
Ending balance	(32,426)	(39,606)	(32,426)	(39,606)
Accumulated other comprehensive (loss) income
Activity Accumulated Other Comprehensive Income [Roll Forward]
Beginning balance	10,133	(597)	15,382	(34,678)
Total other comprehensive (loss) income	(8,716)	(244)	(13,965)	33,837
Ending balance	$ 1,417	$ (841)	$ 1,417	$ (841)

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Shareholders' Equity And Earnings Per Share (Other Comprehensive Income Reclassified from AOCI) (Detail) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2021	Sep. 30, 2020	Sep. 30, 2021	Sep. 30, 2020
Reclassification Adjustment out of Accumulated Other Comprehensive Income on Derivatives [Line Items]
Income tax expense	$ (40,605)	$ (29,969)	$ (133,357)	$ (63,284)
Interest on deposits	19,305	39,084	71,547	156,576
Interest on junior subordinated debentures	2,744	2,703	8,172	8,266
Net income	109,137	107,315	367,394	191,786
Reclassification Out of Accumulated Other Comprehensive Income | Accumulated Unrealized Losses on Securities
Reclassification Adjustment out of Accumulated Other Comprehensive Income on Derivatives [Line Items]
Gains (losses) on investment securities, net	350	50	1,144	200
Income before taxes	350	50	1,144	200
Income tax expense	(94)	(14)	(307)	(54)
Net income	256	36	837	146
Reclassification Out of Accumulated Other Comprehensive Income | Accumulated Unrealized Gains on Derivative Instruments
Reclassification Adjustment out of Accumulated Other Comprehensive Income on Derivatives [Line Items]
Income before taxes	(6,780)	(5,667)	(20,342)	(12,208)
Income tax expense	1,807	1,510	5,421	3,254
Interest on deposits	4,947	3,884	14,898	8,806
Interest on other borrowings	636	740	1,958	1,458
Interest on junior subordinated debentures	1,197	1,043	3,486	1,944
Net income	$ (4,973)	$ (4,157)	$ (14,921)	$ (8,954)

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Shareholders' Equity And Earnings Per Share (Computation Of Basic And Diluted Earnings Per Common Share) (Detail) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2021	Sep. 30, 2020	Sep. 30, 2021	Sep. 30, 2020
Equity [Abstract]
Net income	$ 109,137	$ 107,315	$ 367,394	$ 191,786
Less: Preferred stock dividends	6,991	10,286	20,973	14,386
Net income applicable to common shares	$ 102,146	$ 97,029	$ 346,421	$ 177,400
Weighted average common shares outstanding (in shares)	57,000	57,597	56,985	57,595
Dilutive potential common shares (in shares)	753	449	728	469
Weighted average common shares and effect of dilutive potential common shares (in shares)	57,753	58,046	57,713	58,064
Net income per common share:
Basic (usd per share)	$ 1.79	$ 1.68	$ 6.08	$ 3.08
Diluted (usd per share)	$ 1.77	$ 1.67	$ 6.00	$ 3.06

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Subsequent Events (Details) - Subsequent Event $ in Millions	Nov. 01, 2021 USD ($) loan
Subsequent Event [Line Items]
Loans purchased | $	$ 570
Number of loans purchased | loan	1,800

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Label	Element	Value
Accounting Standards Update [Extensible Enumeration]	us-gaap_AccountingStandardsUpdateExtensibleList	Accounting Standards Update 2016-13 [Member]