(14)
Other Borrowings
The following is a summary of other borrowings at December
31, 2008 and 2007 (in thousands):
2008
Federal funds purchased
Securities sold under
repurchase agreements
Other
Total other borrowings
-
2007
4,223
334,925
1,839
$ 336,764
248,334
1,877
254,434
$
Securities sold under repurchase agreements represent $147.7 million and $165.5 million of customer sweep accounts in connection
with master repurchase agreements at the Banks at December 31,
2008 and 2007, respectively, as well as $187.2 million and $82.8
million of short-term borrowings from banks and brokers at December 31, 2008 and 2007, respectively. Securities pledged for these
borrowings are maintained under the Company’s control and consist of U.S. Government agency, mortgage-backed and corporate
securities. These securities are included in the available-for-sale securities portfolio as reflected on the Company’s Consolidated Statements of Condition.
Other includes a 6.17% fixed-rate mortgage (which matures May 1,
2010) related to the Company’s Northfield banking office.
(15)
Junior Subordinated Debentures
As of December 31, 2008 the Company owned 100% of the
Common Securities of nine 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 and First Northwest Capital Trust I (the "Trusts")
set up to provide long-term financing. The Northview, Town
and First Northwest capital trusts were acquired as part of the
acquisitions of Northview Financial Corporation, Town Bankshares, Ltd. and First Northwest Bancorp, Inc., respectively. The
Trusts were formed for purposes of issuing Trust Preferred Securities to third-party investors and investing the proceeds from
the issuances of the Trust Preferred Securities and the Common
Securities solely in Junior Subordinated Debentures ("Debentures") issued by the Company, with the same maturities and
interest rates as the Trust Preferred Securities. The Debentures
are the sole assets of the Trusts. In each Trust the Common
Securities represent approximately 3% of the Debentures and
the Trust Preferred Securities represent approximately 97% of
the Debentures.
The Trusts are reported in the Company's financial statements
as unconsolidated subsidiaries; the Debentures are reflected as
"Junior subordinated debentures" and the Common Securities
are included in Available-for-sale Securities.
84
A summary of the Company's junior subordinated debentures,
which represents the par value of the obligations and basis
adjustments for the unamortized fair value adjustments recognized at the acquisition dates for the Northview, Town and First
Northwest obligations, at December 31, 2008 and 2007, is as
follows (in thousands):
2008
2007
25,774
25,774
Variable rate (LIBOR + 2.80%)
Debentures owed to
Wintrust Statutory Trust IV,
due December 8, 2033
20,619
20,619
Variable rate (LIBOR + 2.60%)
Debentures owed to
Wintrust Statutory Trust V,
due May 11, 2034
41,238
41,238
51,550
51,550
41,238
41,238
51,547
51,547
6,186
6,228
6,186
6,239
5,177
5,229
Total junior subordinated debentures $ 249,515
249,662
Variable rate (LIBOR + 3.25%)
Debentures owed to
Wintrust Capital Trust III,
due April 7, 2033
Variable rate (LIBOR + 1.95%)
Debentures owed to
Wintrust Capital Trust VII,
due March 15, 2035
Variable rate (LIBOR + 1.45%)
Debentures owed to
Wintrust Capital Trust VIII
due September 30, 2035
Fixed rate (6.84%)
Debentures owed to
Wintrust Capital Trust IX,
due September 15, 2036
Variable rate (LIBOR + 3.00%)
Debentures owed to
Northview Capital Trust I,
due November 8, 2033
Variable rate (LIBOR + 3.00%)
Debentures owed to
Town Bankshares Capital Trust I,
due November 8, 2033
Variable rate (LIBOR + 3.00%)
Debentures owed to
First Northwest Capital Trust I,
due May 31, 2034
$
The interest rates associated with the variable rate Debentures are
based on the three-month LIBOR rate and were 8.07%, 4.26%,
4.06%, 3.95%, 2.91%, 6.19%, 6.19% and 3.15%, for Wintrust
Capital Trust III, Wintrust Statutory Trust IV, Wintrust Statutory Trust V, Wintrust Capital Trust VII, Wintrust Capital Trust
WINTRUST FINANCIAL CORPORATION