Wintrust Financial Corporation Reports Third Quarter and Year-to-Date Results
ROSEMONT, Ill, Oct. 21, 2024 (GLOBE NEWSWIRE) -- Wintrust Financial Corporation ("Wintrust", "the Company", "we" or "our") (NASDAQ:WTFC) announced net income of $509.7 million or $7.67 per diluted common share for the first nine months of 2024 compared to net income of $499.1 million or $7.71 per diluted common share for the same period of 2023. Pre-tax, pre-provision income (non-GAAP) for the first nine months of 2024 totaled a record $778.1 million, compared to $751.3 million in the first nine months of 2023.
The Company recorded quarterly net income of $170.0 million or $2.47 per diluted common share for the third quarter of 2024 compared to net income of $152.4 million or $2.32 per diluted common share for the second quarter of 2024. Pre-tax, pre-provision income (non-GAAP) totaled $255.0 million as compared to $251.4 million for the second quarter of 2024.
Results of operations include those of Macatawa Bank Corporation ("Macatawa"), since the acquisition date of August 1, 2024.
Timothy S. Crane, President and Chief Executive Officer, commented, "Our net income for both the third quarter and year-to-date 2024 were driven by robust organic loan and deposit growth as well as a stable net interest margin. We believe we are well-positioned for strong financial performance as we continue our momentum in the fourth quarter of 2024 and into 2025."
Additionally, Mr. Crane emphasized, "Net interest margin in the third quarter remained stable, decreasing one basis point as compared to the second quarter of 2024. We expect net interest margin to remain in the 3.50% range in the fourth quarter of 2024 and into 2025. Stable net interest margin coupled with continued balance sheet growth should result in net interest income growth. Focusing on growth of net interest income, disciplined expense control and maintaining our consistent credit standards should drive strong financial performance."
Mr. Crane continued, "I want to recognize the efforts of our new Macatawa teammates and committed Wintrust team members on the seamless transaction and a solid beginning to integration activities. Macatawa offers a unique opportunity for Wintrust to expand into the desirable west Michigan market with a compatible management team and reputable brand. The quality core deposit franchise, excess liquidity and pristine credit quality coupled with aligned values make the acquisition an ideal fit for the Company. We are thrilled to bring our product offerings to Michigan and continue Macatawa's commitment to customer service and community involvement."
Highlights of the third quarter of 2024:Comparative information to the second quarter of 2024, unless otherwise noted
Total loans increased by approximately $2.4 billion, which includes approximately $1.3 billion of acquired balances relating to Macatawa. Excluding Macatawa, total loans increased $1.1 billion or 10% annualized.
Total deposits increased by approximately $3.4 billion, which includes approximately $2.3 billion of acquired balances relating to Macatawa. Excluding Macatawa, total deposits increased $1.1 billion or 9% annualized.
Total assets increased by $4.0 billion, which includes approximately $2.9 billion of acquired assets relating to Macatawa. Excluding Macatawa, total assets increased $1.1 billion or 8% annualized.
Net interest income increased to $502.6 million in the third quarter of 2024 compared to $470.6 million in the second quarter of 2024, primarily due to average earning asset growth and the addition of Macatawa for the last two months of the third quarter.
Net interest margin decreased by one basis point to 3.49% (3.51% on a fully taxable-equivalent basis, non-GAAP) during the third quarter of 2024.
Non-interest income was impacted by the following:
Net gains on investment securities totaling $3.2 million in the third quarter of 2024 related to changes in the value of equity securities as compared to net losses of $4.3 million in the second quarter of 2024.
Unfavorable mortgage servicing rights ("MSRs") related revenue totaled $11.4 million in the third quarter of 2024 compared to favorable MSRs related revenue of $2.8 million in the second quarter of 2024.
Non-interest expense was impacted by the following:
Macatawa added approximately $10.1 million of total operating expenses, including $3.0 million of core deposit intangible asset amortization.
Incurred acquisition related costs of $1.6 million in the third quarter of 2024 as compared to $542,000 in the second quarter of 2024.
Provision for credit losses totaled $22.3 million in the third quarter of 2024, including a one-time acquisition-related Day 1 provision of approximately $15.5 million, as compared to a provision for credit losses of $40.1 million in the second quarter of 2024.
Tangible book value per common share (non-GAAP) increased to $76.15 as of September 30, 2024 as compared to $72.01 as of June 30, 2024. See Table 18 for reconciliation of non-GAAP measures.
Mr. Crane noted, "We are very pleased with our organic loan and deposit growth rates. Excess liquidity acquired in the Macatawa transaction was deployed by funding quality loan growth and reducing exposure to wholesale and brokered funding sources. Non-interest bearing deposits remained at 21% of total deposits at the end of the third quarter of 2024 and increased $708 million compared to the second quarter of 2024. We continue to leverage our customer relationships and market positioning to generate deposits, grow loans and build long term franchise value."
Commenting on credit quality, Mr. Crane stated, "Our credit metrics were stable. Net charge-offs totaled $26.7 million, or 23 basis points of average total loans on an annualized basis, in the third quarter of 2024 and were spread primarily across the commercial and property and casualty premium finance receivables portfolios. This compared to net charge-offs totaling $30.0 million, or 28 basis points of average total loans on an annualized basis, in the second quarter of 2024. Approximately $18.3 million of charge-offs in the current quarter were previously reserved for in the second quarter of 2024. Non-performing loans totaled $179.7 million, or 0.38% of total loans, at the end of the third quarter of 2024 compared to $174.3 million, or 0.39% of total loans, at the end of the second quarter of 2024. Total non-performing assets comprised 0.30% of total assets as of September 30, 2024, a two basis point decline compared to June 30, 2024. We continue to be conservative and proactive in reviewing credit and maintaining our consistently strong credit standards. We believe that the Company's reserves remain appropriate and we remain diligent in our review of credit."
In summary, Mr. Crane noted, "Our record year continued as we built upon our strong momentum with the acquisition of Macatawa. Substantial loan growth in the third quarter and inclusion of Macatawa for all three months in the fourth quarter create positive revenue momentum. We have reduced our asset sensitivity to interest rates and therefore we believe that we are well positioned for the current interest rate environment and consensus forecast for additional interest rate cuts by the Federal Reserve. Steadfast commitment to credit quality, growing net interest income and increasing our long term franchise value remain our priority."
The graphs below illustrate certain financial highlights of the third quarter of 2024 as well as historical financial performance. See "Supplemental Non-GAAP Financial Measures/Ratios" at Table 18 for additional information with respect to non-GAAP financial measures/ratios, including the reconciliations to the corresponding GAAP financial measures/ratios.
Graphs available at the following link: http://ml.globenewswire.com/Resource/Download/bc11950c-ec29-45c6-902d-8e0709edd6de
SUMMARY OF RESULTS:
BALANCE SHEET
Total assets increased $4.0 billion in the third quarter of 2024 as compared to the second quarter of 2024. Total loans increased by $2.4 billion as compared to the second quarter of 2024. The increase in total loans included approximately $1.3 billion of loans related to the Macatawa acquisition. The increase in loans was diversified across nearly all loan portfolios.
Total liabilities increased by $3.1 billion in the third quarter of 2024 as compared to the second quarter of 2024 primarily due to a $3.4 billion increase in total deposits. The increase in total deposits included approximately $2.3 billion related to the Macatawa acquisition. Excess liquidity acquired in the Macatawa transaction enabled the Company to reduce brokered funding reliance by $858 million. Non-interest bearing deposits increased $708 million in the third quarter of 2024 as compared to the second quarter of 2024. Non-interest bearing deposits as a percentage of total deposits was 21% at September 30, 2024, June 30, 2024 and March 31, 2024. The Company's loans to deposits ratio was 91.6% on September 30, 2024 as compared to 93.0% as of June 30, 2024.
For more information regarding changes in the Company's balance sheet, see Consolidated Statements of Condition and Table 1 through Table 3 in this report.
NET INTEREST INCOME
For the third quarter of 2024, net interest income totaled $502.6 million, an increase of $32.0 million as compared to the second quarter of 2024. The $32.0 million increase in net interest income in the third quarter of 2024 compared to the second quarter of 2024 was primarily due to a $3.1 billion increase in average earning assets, which included the addition of Macatawa in the third quarter. These benefits were partially offset by a one basis point decrease in the net interest margin.
Net interest margin was 3.49% (3.51% on a fully taxable-equivalent basis, non-GAAP) during the third quarter of 2024 compared to 3.50% (3.52% on a fully taxable-equivalent basis, non-GAAP) during the second quarter of 2024. The net interest margin decrease as compared to the second quarter of 2024 was primarily due to a one basis point decrease in the yield on earning assets and one basis point decrease in the net free funds contribution. These declines were partially offset by a one basis point decrease in rate paid on interest-bearing liabilities. The one basis point decrease in yield on earnings assets in the third quarter of 2024 as compared to the second quarter of 2024 was primarily due to an increase in average interest-bearing cash as a percentage of average quarterly earning assets associated with the Macatawa acquisition. The one basis point decrease in the rate paid on interest-bearing liabilities in the third quarter of 2024 as compared to the second quarter of 2024 was primarily due to a one basis point decrease in rate paid on interest-bearing deposits.
For more information regarding net interest income, see Table 4 through Table 8 in this report.
ASSET QUALITY
The allowance for credit losses totaled $436.2 million as of September 30, 2024, relatively unchanged compared to $437.6 million as of June 30, 2024. A provision for credit losses totaling $22.3 million was recorded for the third quarter of 2024 as compared to $40.1 million recorded in the second quarter of 2024. Provision for credit losses in the third quarter of 2024 included Day 1 provision for credit losses of approximately $15.5 million related to the Macatawa acquisition. The lower provision for credit losses recognized in the third quarter of 2024 compared to the second quarter of 2024 was primarily attributable to lower required specific reserves on nonaccrual loans, improved forecasted macroeconomic conditions, and, to a lesser extent, portfolio changes related to improved risk rating mix and shorter life of loan. For more information regarding the allowance for credit losses and provision for credit losses, see Table 11 in this report.
Management believes the allowance for credit losses is appropriate to account for expected credit losses. The Current Expected Credit Losses accounting standard requires the Company to estimate expected credit losses over the life of the Company's financial assets as of the reporting date. There can be no assurances, however, that future losses will not significantly exceed the amounts provided for, thereby affecting future results of operations. A summary of the allowance for credit losses calculated for the loan components in each portfolio as of September 30, 2024, June 30, 2024, and March 31, 2024 is shown on Table 12 of this report.
Net charge-offs totaled $26.7 million in the third quarter of 2024, a decrease of $3.3 million as compared to $30.0 million of net charge-offs in the second quarter of 2024. Approximately $18.3 million of charge-offs in the current quarter were previously reserved for in the second quarter of 2024. Net charge-offs as a percentage of average total loans were 23 basis points in the third quarter of 2024 on an annualized basis compared to 28 basis points on an annualized basis in the second quarter of 2024. For more information regarding net charge-offs, see Table 10 in this report.
The Company's delinquency rates remain low and manageable. For more information regarding past due loans, see Table 13 in this report.
Non-performing assets totaled $193.4 million and comprised 0.30% of total assets as of September 30, 2024, as compared to $194.0 million, or 0.32% of total assets, as of June 30, 2024. Non-performing loans totaled $179.7 million and comprised 0.38% of total loans at September 30, 2024, as compared to $174.3 million and 0.39% of total loans at June 30, 2024. The increase in the third quarter of 2024 was primarily due to an increase in certain credits within the commercial portfolios becoming nonaccrual. For more information regarding non-performing assets, see Table 14 in this report.
Credit metrics remained stable and at relatively low levels in the third quarter of 2024.
NON-INTEREST INCOME
Wealth management revenue increased by $1.8 million in the third quarter of 2024 as compared to the second quarter of 2024 primarily due to the Macatawa acquisition and increased asset management fees from higher assets under management during the period. Wealth management revenue is comprised of the trust and asset management revenue of Wintrust Private Trust Company and Great Lakes Advisors, the brokerage commissions, managed money fees and insurance product commissions at Wintrust Investments and fees from tax-deferred like-kind exchange services provided by the Chicago Deferred Exchange Company.
Mortgage banking revenue decreased by $13.2 million in the third quarter of 2024 as compared to the second quarter of 2024 primarily due to $11.4 million unfavorable MSR related revenues, net of servicing hedge, in the third quarter of 2024 compared to $2.8 million favorable MSR related revenues in the second quarter of 2024 and slightly decreased production revenue due to reduced production margin. This was partially offset by a favorable adjustment to the Company's held-for-sale portfolio of early buy-out exercised loans guaranteed by U.S. government agencies, which are held at fair value, of $3.5 million in the third quarter of 2024 compared to a $642,000 favorable adjustment in the second quarter of 2024. The Company monitors the relationship of these assets and seeks to minimize the earnings impact of fair value changes. For more information regarding mortgage banking revenue, see Table 16 in this report.
The Company recognized $3.2 million in net gains on investment securities in the third quarter of 2024 as compared to $4.3 million in net losses in the second quarter of 2024. The net gains in the third quarter of 2024 were primarily the result of unrealized gains on the Company's equity investment securities with a readily determinable fair value.
Fees from covered call options decreased by $1.1 million in the third quarter of 2024 as compared to the second quarter of 2024. 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. These option transactions are designed to mitigate overall interest rate risk and do not qualify as hedges pursuant to accounting guidance.
Other income decreased by $5.1 million in the third quarter of 2024 compared to the second quarter of 2024 primarily due to a gain recognized in the second quarter of 2024 associated with our property and casualty insurance premium finance receivable loan sale transaction.
For more information regarding non-interest income, see Table 15 in this report.
NON-INTEREST EXPENSE
Non-interest expenses totaled $360.7 million in the third quarter of 2024, increasing $20.3 million as compared to $340.4 million in the second quarter of 2024. The Macatawa acquisition impacted this increase by approximately $10.1 million of non-interest expense associated with Macatawa, which included $3.0 million in amortization of other acquisition-related intangible assets in the third quarter of 2024.
Salaries and employee benefits expense increased by $12.7 million in the third quarter of 2024 as compared to the second quarter of 2024. The $12.7 million increase is primarily related to higher incentive compensation expense due to elevated bonus accruals in the third quarter of 2024 as well as increased salaries expense due to the Macatawa acquisition and additional staffing to support the Company's growth.
Software and equipment expense increased $2.3 million in the third quarter of 2024 as compared to the second quarter of 2024 primarily due to software expense relating to upgrading and maintenance of information technology and security infrastructure as well as the Macatawa acquisition.
Advertising and marketing expenses in the third quarter of 2024 totaled $18.2 million, which is a $803,000 increase as compared to the second quarter of 2024. Marketing costs are incurred to promote the Company's brand, commercial banking capabilities and the Company's various products, to attract loans and deposits and to announce new branch openings as well as the expansion of the Company's non-bank businesses. The level of marketing expenditures depends on the timing of sponsorship programs utilized which are determined based on the market area, targeted audience, competition and various other factors. Generally, these expenses are elevated in the second and third quarters of each year.
For more information regarding non-interest expense, see Table 17 in this report.
INCOME TAXES
The Company recorded income tax expense of $62.7 million in the third quarter compared to $59.0 million in the second quarter of 2024. The effective tax rates were 26.95% in the third quarter of 2024 compared to 27.90% in the second quarter of 2024. The effective tax rates were impacted by an overall lower level of provision for state income tax expense in the comparable periods.
BUSINESS UNIT SUMMARY
Community Banking
Through its community banking unit, the Company provides banking and financial services primarily to individuals, small to mid-sized businesses, local governmental units and institutional clients residing primarily in the local areas the Company services. In the third quarter of 2024, the community banking unit expanded its commercial, commercial real estate and residential real estate loan portfolios.
Mortgage banking revenue was $16.0 million for the third quarter of 2024, a decrease of $13.2 million as compared to the second quarter of 2024, primarily due to $11.4 million unfavorable MSR related revenues, net of servicing hedge, in the third quarter of 2024 compared to $2.8 million favorable MSR related revenues in the second quarter of 2024 and slightly decreased production revenue due to reduced production margin. This was partially offset by a favorable adjustment to the Company's held-for-sale portfolio of early buy-out exercised loans guaranteed by U.S. government agencies, which are held at fair value, of $3.5 million in the third quarter of 2024 compared to a $642,000 favorable adjustment in the second quarter of 2024. Service charges on deposit accounts totaled $16.4 million in the third quarter of 2024, which was relatively stable compared to the second quarter of 2024. The Company's gross commercial and commercial real estate loan pipelines remained solid as of September 30, 2024 indicating momentum for expected continued loan growth in the fourth quarter of 2024.
Specialty Finance
Through its specialty finance unit, the Company offers financing of insurance premiums for businesses and individuals, equipment financing through structured loans and lease products to customers in a variety of industries, accounts receivable financing and value-added, out-sourced administrative services and other services. Originations within the insurance premium financing receivables portfolios were $4.8 billion during the third quarter of 2024. Average balances increased by $259.8 million, as compared to the second quarter of 2024. The Company's leasing portfolio balance remained stable in the third quarter of 2024, with its portfolio of assets, including capital leases, loans and equipment on operating leases, totaling $3.7 billion as of September 30, 2024 and June 30, 2024. Revenues from the Company's out-sourced administrative services business were $1.5 million in the third quarter of 2024, which was relatively stable compared to the second quarter of 2024.
Wealth Management
Through four separate subsidiaries within its wealth management unit, the Company offers a full range of wealth management services, including trust and investment services, tax-deferred like-kind exchange services, asset management, and securities brokerage services. See "Items Impacting Comparative Results," regarding the sale of the Company's Retirement Benefits Advisors ("RBA") division during the first quarter of 2024. Wealth management revenue totaled $37.2 million in the third quarter of 2024, relatively stable as compared to the second quarter of 2024. At September 30, 2024, the Company's wealth management subsidiaries had approximately $51.1 billion of assets under administration, which included $8.0 billion of assets owned by the Company and its subsidiary banks.
ITEMS IMPACTING COMPARATIVE FINANCIAL RESULTS
Business Combination
On August 1, 2024, the Company completed its previously announced acquisition of Macatawa, the parent company of Macatawa Bank. In conjunction with the completed acquisition, the Company issued approximately 4.7 million shares of common stock. Macatawa operates 26 full-service branches located throughout communities in Kent, Ottawa and northern Allegan counties in the state of Michigan. Macatawa offers a full range of banking, retail and commercial lending, wealth management and ecommerce services to individuals, businesses and governmental entities. As of August 1, 2024, Macatawa had approximately $2.9 billion in assets, $2.3 billion in deposits and $1.3 billion in loans. The Company preliminarily recorded goodwill of approximately $144.6 million on the purchase.
Division Sale
In the first quarter of 2024, the Company sold its RBA division and recorded a gain of approximately $20.0 million in other non-interest income from the sale.
Business Combination
On April 3, 2023, the Company completed its acquisition of Rothschild & Co Asset Management US Inc. and Rothschild & Co Risk Based Investments LLC from Rothschild & Co North America Inc. As the transaction was determined to be a business combination, the Company recorded goodwill of approximately $2.6 million on the purchase.
WINTRUST FINANCIAL CORPORATIONKey Operating Measures
Wintrust's key operating measures and growth rates for the third quarter of 2024, as compared to the second quarter of 2024 (sequential quarter) and third quarter of 2023 (linked quarter), are shown in the table below:
% or(1)basis point (bp) change from2nd Quarter2024
% orbasis point (bp) change from3rd Quarter2023
Three Months Ended
(Dollars in thousands, except per share data)
Sep 30, 2024
Jun 30, 2024
Sep 30, 2023
Net income
$
170,001
$
152,388
$
164,198
12
%
4
%
Pre-tax income, excluding provision for credit losses (non-GAAP) (2)
255,043
251,404
244,781
1
4
Net income per common share, Diluted
2.47
2.32
2.53
6
(2)
Cash dividends declared per common share
0.45
0.45
0.40
—
13
Net revenue (3)
615,730
591,757
574,836
4
7
Net interest income
502,583
470,610
462,358
7
9
Net interest margin
3.49
%
3.50
%
3.60
%
(1)
bps
(11)
bps
Net interest margin, fully taxable-equivalent (non-GAAP) (2)
3.51
3.52
3.62
(1)
(11)
Net overhead ratio (4)
1.62
1.53
1.59
9
3
Return on average assets
1.11
1.07
1.20
4
(9)
Return on average common equity
11.63
11.61
13.35
2
(172)
Return on average tangible common equity (non-GAAP) (2)
13.92
13.49
15.73
43
(181)
At end of period
Total assets
$
63,788,424
$
59,781,516
$
55,555,246
27
%
15
%
Total loans (5)
47,067,447
44,675,531
41,446,032
21
14
Total deposits
51,404,966
48,049,026
44,992,686
28
14
Total shareholders' equity
6,399,714
5,536,628
5,015,613
62
28
(1) Period-end balance sheet percentage changes are annualized.(2) See Table 18: Supplemental Non-GAAP Financial Measures/Ratios for additional information on this performance measure/ratio.(3) Net revenue is net interest income plus non-interest income.(4) The net overhead ratio is calculated by netting total non-interest expense and total non-interest income, annualizing this amount, and dividing by that period's average total assets. A lower ratio indicates a higher degree of efficiency.(5) Excludes mortgage loans held-for-sale.
Certain returns, yields, performance ratios, or quarterly growth rates are "annualized" in this presentation to represent an annual time period. This is done for analytical purposes to better discern, for decision-making purposes, underlying performance trends when compared to full-year or year-over-year amounts. For example, a 5% growth rate for a quarter would represent an annualized 20% growth rate. Additional supplemental financial information showing quarterly trends can be found on the Company's website at www.wintrust.com by choosing "Financial Reports" under the "Investor Relations" heading, and then choosing "Financial Highlights."
WINTRUST FINANCIAL CORPORATIONSelected Financial Highlights
Three Months Ended
Nine Months Ended
(Dollars in thousands, except per share data)
Sep 30, 2024
Jun 30, 2024
Mar 31, 2024
Dec 31, 2023
Sep 30, 2023
Sep 30, 2024
Sep 30, 2023
Selected Financial Condition Data (at end of period):
Total assets
$
63,788,424
$
59,781,516
$
57,576,933
$
56,259,934
$
55,555,246
Total loans(1)
47,067,447
44,675,531
43,230,706
42,131,831
41,446,032
Total deposits
51,404,966
48,049,026
46,448,858
45,397,170
44,992,686
Total shareholders' equity
6,399,714
5,536,628
5,436,400
5,399,526
5,015,613
Selected Statements of Income Data:
Net interest income
$
502,583
$
470,610
$
464,194
$
469,974
$
462,358
$
1,437,387
$
1,367,890
Net revenue(2)
615,730
591,757
604,774
570,803
574,836
1,812,261
1,701,167
Net income
170,001
152,388
187,294
123,480
164,198
509,683
499,146
Pre-tax income, excluding provision for credit losses (non-GAAP)(3)
255,043
251,404
271,629
208,151
244,781
778,076
751,320
Net income per common share, Basic
2.51
2.35
2.93
1.90
2.57
7.79
7.82
Net income per common share, Diluted
2.47
2.32
2.89
1.87
2.53
7.67
7.71
Cash dividends declared per common share
0.45
0.45
0.45
0.40
0.40
1.35
1.20
Selected Financial Ratios and Other Data:
Performance Ratios:
Net interest margin
3.49
%
3.50
%
3.57
%
3.62
%
3.60
%
3.52
%
3.68
%
Net interest margin, fully taxable-equivalent (non-GAAP)(3)
3.51
3.52
3.59
3.64
3.62
3.54
3.70
Non-interest income to average assets
0.74
0.85
1.02
0.73
0.82
0.86
0.84
Non-interest expense to average assets
2.36
2.38
2.41
2.62
2.41
2.38
2.39
Net overhead ratio(4)
1.62
1.53
1.39
1.89
1.59
1.52
1.55
Return on average assets
1.11
1.07
1.35
0.89
1.20
1.17
1.26
Return on average common equity
11.63
11.61
14.42
9.93
13.35
12.52
13.91
Return on average tangible common equity (non-GAAP)(3)
13.92
13.49
16.75
11.73
15.73
14.69
16.43
Average total assets
$
60,915,283
$
57,493,184
$
55,602,695
$
55,017,075
$
54,381,981
$
58,014,347
$
53,028,199
Average total shareholders' equity
5,990,429
5,450,173
5,440,457
5,066,196
5,083,883
5,628,346
5,008,648
Average loans to average deposits ratio
93.8
%
95.1
%
94.5
%
92.9
%
92.4
%
94.5
%
93.2
%
Period-end loans to deposits ratio
91.6
93.0
93.1
92.8
92.1
Common Share Data at end of period:
Market price per common share
$
108.53
$
98.56
$
104.39
$
92.75
$
75.50
Book value per common share
90.06
82.97
81.38
81.43
75.19
Tangible book value per common share (non-GAAP)(3)
76.15
72.01
70.40
70.33
64.07
Common shares outstanding
66,481,543
61,760,139
61,736,715
61,243,626
61,222,058
Other Data at end of period:
Common equity to assets ratio
9.4
%
8.6
%
8.7
%
8.9
%
8.3
%
Tangible common equity ratio (non-GAAP)(3)
8.1
7.5
7.6
7.7
7.1
Tier 1 leverage ratio(5)
9.4
9.3
9.4
9.3
9.2
Risk-based capital ratios:
Tier 1 capital ratio(5)
10.5
10.3
10.3
10.3
10.2
Common equity tier 1 capital ratio(5)
9.8
9.5
9.5
9.4
9.3
Total capital ratio(5)
12.2
12.1
12.2
12.1
12.0
Allowance for credit losses(6)
$
436,193
$
437,560
$
427,504
$
427,612
$
399,531
Allowance for loan and unfunded lending-related commitment losses to total loans
0.93
%
0.98
%
0.99
%
1.01
%
0.96
%
Number of:
Bank subsidiaries
16
15
15
15
15
Banking offices
203
177
176
174
174
(1) Excludes mortgage loans held-for-sale.(2) Net revenue is net interest income plus non-interest income.(3) See Table 18: Supplemental Non-GAAP Financial Measures/Ratios for additional information on this performance measure/ratio.(4) The net overhead ratio is calculated by netting total non-interest expense and total non-interest income, annualizing this amount, and dividing by that period's average total assets. A lower ratio indicates a higher degree of efficiency.(5) Capital ratios for current quarter-end are estimated.(6) The allowance for credit losses includes the allowance for loan losses, the allowance for unfunded lending-related commitments and the allowance for held-to-maturity securities losses.WINTRUST FINANCIAL CORPORATION AND SUBSIDIARIESCONSOLIDATED STATEMENTS OF CONDITION
(Unaudited)
(Unaudited)
(Unaudited)
(Unaudited)
Sep 30,
Jun 30,
Mar 31,
Dec 31,
Sep 30,
(In thousands)
2024
2024
2024
2023
2023
Assets
Cash and due from banks
$
725,465
$
415,462
$
379,825
$
423,404
$
418,088
Federal funds sold and securities purchased under resale agreements
5,663
62
61
60
60
Interest-bearing deposits with banks
3,648,117
2,824,314
2,131,077
2,084,323
2,448,570
Available-for-sale securities, at fair value
3,912,232
4,329,957
4,387,598
3,502,915
3,611,835
Held-to-maturity securities, at amortized cost
3,677,420
3,755,924
3,810,015
3,856,916
3,909,150
Trading account securities
3,472
4,134
2,184
4,707
1,663
Equity securities with readily determinable fair value
125,310
112,173
119,777
139,268
134,310
Federal Home Loan Bank and Federal Reserve Bank stock
266,908
256,495
224,657
205,003
204,040
Brokerage customer receivables
16,662
13,682
13,382
10,592
14,042
Mortgage loans held-for-sale, at fair value
461,067
411,851
339,884
292,722
304,808
Loans, net of unearned income
47,067,447
44,675,531
43,230,706
42,131,831
41,446,032
Allowance for loan losses
(360,279
)
(363,719
)
(348,612
)
(344,235
)
(315,039
)
Net loans
46,707,168
44,311,812
42,882,094
41,787,596
41,130,993
Premises, software and equipment, net
772,002
722,295
744,769
748,966
747,501
Lease investments, net
270,171
275,459
283,557
281,280
275,152
Accrued interest receivable and other assets
1,721,090
1,671,334
1,580,142
1,551,899
1,674,681
Trade date securities receivable
551,031
—
—
690,722
—
Goodwill
800,780
655,955
656,181
656,672
656,109
Other acquisition-related intangible assets
123,866
20,607
21,730
22,889
24,244
Total assets
$
63,788,424
$
59,781,516
$
57,576,933
$
56,259,934
$
55,555,246
Liabilities and Shareholders' Equity
Deposits:
Non-interest-bearing
$
10,739,132
$
10,031,440
$
9,908,183
$
10,420,401
$
10,347,006
Interest-bearing
40,665,834
38,017,586
36,540,675
34,976,769
34,645,680
Total deposits
51,404,966
48,049,026
46,448,858
45,397,170
44,992,686
Federal Home Loan Bank advances
3,171,309
3,176,309
2,676,751
2,326,071
2,326,071
Other borrowings
647,043
606,579
575,408
645,813
643,999
Subordinated notes
298,188
298,113
437,965
437,866
437,731
Junior subordinated debentures
253,566
253,566
253,566
253,566
253,566
Accrued interest payable and other liabilities
1,613,638
1,861,295
1,747,985
1,799,922
1,885,580
Total liabilities
57,388,710
54,244,888
52,140,533
50,860,408
50,539,633
Shareholders' Equity:
Preferred stock
412,500
412,500
412,500
412,500
412,500
Common stock
66,546
61,825
61,798
61,269
61,244
Surplus
2,470,228
1,964,645
1,954,532
1,943,806
1,933,226
Treasury stock
(6,098
)
(5,760
)
(5,757
)
(2,217
)
(1,966
)
Retained earnings
3,748,715
3,615,616
3,498,475
3,345,399
3,253,332
Accumulated other comprehensive loss
(292,177
)
(512,198
)
(485,148
)
(361,231
)
(642,723
)
Total shareholders' equity
6,399,714
5,536,628
5,436,400
5,399,526
5,015,613
Total liabilities and shareholders' equity
$
63,788,424
$
59,781,516
$
57,576,933
$
56,259,934
$
55,555,246
WINTRUST FINANCIAL CORPORATION AND SUBSIDIARIESCONSOLIDATED STATEMENTS OF INCOME (UNAUDITED)
Three Months Ended
Nine Months Ended
(Dollars in thousands, except per share data)
Sep 30,2024
Jun 30,2024
Mar 31,2024
Dec 31,2023
Sep 30,2023
Sep 30, 2024
Sep 30, 2023
Interest income
Interest and fees on loans
$
794,163
$
749,812
$
710,341
$
694,943
$
666,260
$
2,254,316
$
1,846,009
Mortgage loans held-for-sale
6,233
5,434
4,146
4,318
4,767
15,813
12,473
Interest-bearing deposits with banks
32,608
19,731
16,658
21,762
26,866
68,997
57,216
Federal funds sold and securities purchased under resale agreements
277
17
19
578
1,157
313
1,228
Investment securities
69,592
69,779
69,678
68,237
59,164
209,049
170,350
Trading account securities
11
13
18
15
6
42
26
Federal Home Loan Bank and Federal Reserve Bank stock
5,451
4,974
4,478
3,792
3,896
14,903
11,120
Brokerage customer receivables
269
219
175
203
284
663
844
Total interest income
908,604
849,979
805,513
793,848
762,400
2,564,096
2,099,266
Interest expense
Interest on deposits
362,019
335,703
299,532
285,390
262,783
997,254
621,080
Interest on Federal Home Loan Bank advances
26,254
24,797
22,048
18,316
17,436
73,099
53,970
Interest on other borrowings
9,013
8,700
9,248
9,557
9,384
26,961
25,723
Interest on subordinated notes
3,712
5,185
5,487
5,522
5,491
14,384
16,502
Interest on junior subordinated debentures
5,023
4,984
5,004
5,089
4,948
15,011
14,101
Total interest expense
406,021
379,369
341,319
323,874
300,042
1,126,709
731,376
Net interest income
502,583
470,610
464,194
469,974
462,358
1,437,387
1,367,890
Provision for credit losses
22,334
40,061
21,673
42,908
19,923
84,068
71,482
Net interest income after provision for credit losses
480,249
430,549
442,521
427,066
442,435
1,353,319
1,296,408
Non-interest income
Wealth management
37,224
35,413
34,815
33,275
33,529
107,452
97,332
Mortgage banking
15,974
29,124
27,663
7,433
27,395
72,761
75,640
Service charges on deposit accounts
16,430
15,546
14,811
14,522
14,217
46,787
40,728
Gains (losses) on investment securities, net
3,189
(4,282
)
1,326
2,484
(2,357
)
233
(959
)
Fees from covered call options
988
2,056
4,847
4,679
4,215
7,891
17,184
Trading (losses) gains, net
(130
)
70
677
(505
)
728
617
1,647
Operating lease income, net
15,335
13,938
14,110
14,162
13,863
43,383
39,136
Other
24,137
29,282
42,331
24,779
20,888
95,750
62,569
Total non-interest income
113,147
121,147
140,580
100,829
112,478
374,874
333,277
Non-interest expense
Salaries and employee benefits
211,261
198,541
195,173
193,971
192,338
604,975
554,042
Software and equipment
31,574
29,231
27,731
27,779
25,951
88,536
76,853
Operating lease equipment
10,518
10,834
10,683
10,694
12,020
32,035
31,669
Occupancy, net
19,945
19,585
19,086
18,102
21,304
58,616
58,966
Data processing
9,984
9,503
9,292
8,892
10,773
28,779
29,908
Advertising and marketing
18,239
17,436
13,040
17,166
18,169
48,715
47,909
Professional fees
9,783
9,967
9,553
8,768
8,887
29,303
25,990
Amortization of other acquisition-related intangible assets
4,042
1,122
1,158
1,356
1,408
6,322
4,142
FDIC insurance
10,512
10,429
14,537
43,677
9,748
35,478
27,425
OREO expenses, net
(938
)
(259
)
392
(1,559
)
120
(805
)
31
Other
35,767
33,964
32,500
33,806
29,337
102,231
92,912
Total non-interest expense
360,687
340,353
333,145
362,652
330,055
1,034,185
949,847
Income before taxes
232,709
211,343
249,956
165,243
224,858
694,008
679,838
Income tax expense
62,708
58,955
62,662
41,763
60,660
184,325
180,692
Net income
$
170,001
$
152,388
$
187,294
$
123,480
$
164,198
$
509,683
$
499,146
Preferred stock dividends
6,991
6,991
6,991
6,991
6,991
20,973
20,973
Net income applicable to common shares
$
163,010
$
145,397
$
180,303
$
116,489
$
157,207
$
488,710
$
478,173
Net income per common share - Basic
$
2.51
$
2.35
$
2.93
$
1.90
$
2.57
$
7.79
$
7.82
Net income per common share - Diluted
$
2.47
$
2.32
$
2.89
$
1.87
$
2.53
$
7.67
$
7.71
Cash dividends declared per common share
$
0.45
$
0.45
$
0.45
$
0.40
$
0.40
$
1.35
$
1.20
Weighted average common shares outstanding
64,888
61,839
61,481
61,236
61,213
62,743
61,119
Dilutive potential common shares
1,053
926
928
1,166
964
934
888
Average common shares and dilutive common shares
65,941
62,765
62,409
62,402
62,177
63,677
62,007
TABLE 1: LOAN PORTFOLIO MIX AND GROWTH RATES
% Growth From
(Dollars in thousands)
Sep 30,2024
Jun 30,2024
Mar 31,2024
Dec 31,2023
Sep 30,2023
Dec 31,2023(1)
Sep 30,2023
Balance:
Mortgage loans held-for-sale, excluding early buy-out exercised loans guaranteed by U.S. government agencies
$
314,693
$
281,103
$
193,064
$
155,529
$
190,511
NM
65
%
Mortgage loans held-for-sale, early buy-out exercised loans guaranteed by U.S. government agencies
146,374
130,748
146,820
137,193
114,297
9
28
Total mortgage loans held-for-sale
$
461,067
$
411,851
$
339,884
$
292,722
$
304,808
77
%
51
%
Core loans:
Commercial
Commercial and industrial
$
6,768,382
$
6,226,336
$
6,105,968
$
5,804,629
$
5,894,732
22
%
15
%
Asset-based lending
1,709,685
1,465,867
1,355,255
1,433,250
1,396,591
26
22
Municipal
827,125
747,357
721,526
677,143
676,915
30
22
Leases
2,443,721
2,439,128
2,344,295
2,208,368
2,109,628
14
16
PPP loans
6,301
9,954
11,036
11,533
13,744
(61
)
(54
)
Commercial real estate
Residential construction
73,088
55,019
57,558
58,642
51,550
33
42
Commercial construction
1,984,240
1,866,701
1,748,607
1,729,937
1,547,322
20
28
Land
346,362
338,831
344,149
295,462
294,901
23
17
Office
1,675,286
1,585,312
1,566,748
1,455,417
1,422,748
20
18
Industrial
2,527,932
2,307,455
2,190,200
2,135,876
2,057,957
25
23
Retail
1,404,586
1,365,753
1,366,415
1,337,517
1,341,451
7
5
Multi-family
3,193,339
2,988,940
2,922,432
2,815,911
2,710,829
18
18
Mixed use and other
1,588,584
1,439,186
1,437,328
1,515,402
1,519,422
6
5
Home equity
427,043
356,313
340,349
343,976
343,258
32
24
Residential real estate
Residential real estate loans for investment
3,252,649
2,933,157
2,746,916
2,619,083
2,538,630
32
28
Residential mortgage loans, early buy-out eligible loans guaranteed by U.S. government agencies
92,355
88,503
90,911
92,780
97,911
(1
)
(6
)
Residential mortgage loans, early buy-out exercised loans guaranteed by U.S. government agencies
43,034
45,675
52,439
57,803
71,062
(34
)
(39
)
Total core loans
$
28,363,712
$
26,259,487
$
25,402,132
$
24,592,729
$
24,088,651
20
%
18
%
Niche loans:
Commercial
Franchise
$
1,191,686
$
1,150,460
$
1,122,302
$
1,092,532
$
1,074,162
12
%
11
%
Mortgage warehouse lines of credit
750,462
593,519
403,245
230,211
245,450
302
206
Community Advantage - homeowners association
501,645
491,722
475,832
452,734
424,054
14
18
Insurance agency lending
1,048,686
1,030,119
964,022
921,653
890,197
18
18
Premium Finance receivables
U.S. property & casualty insurance
6,253,271
6,142,654
6,113,993
5,983,103
5,815,346
6
8
Canada property & casualty insurance
878,410
958,099
826,026
920,426
907,401
(6
)
(3
)
Life insurance
7,996,899
7,962,115
7,872,033
7,877,943
7,931,808
2
1
Consumer and other
82,676
87,356
51,121
60,500
68,963
49
20
Total niche loans
$
18,703,735
$
18,416,044
$
17,828,574
$
17,539,102
$
17,357,381
9
%
8
%
Total loans, net of unearned income
$
47,067,447
$
44,675,531
$
43,230,706
$
42,131,831
$
41,446,032
16
%
14
%
(1) Annualized.
TABLE 2: DEPOSIT PORTFOLIO MIX AND GROWTH RATES
% Growth From
(Dollars in thousands)
Sep 30,2024
Jun 30,2024
Mar 31,2024
Dec 31,2023
Sep 30,2023
Jun 30,2024(1)
Sep 30,2023
Balance:
Non-interest-bearing
$
10,739,132
$
10,031,440
$
9,908,183
$
10,420,401
$
10,347,006
28
%
4
%
NOW and interest-bearing demand deposits
5,466,932
5,053,909
5,720,947
5,797,649
6,006,114
33
(9
)
Wealth management deposits(2)
1,303,354
1,490,711
1,347,817
1,614,499
1,788,099
(50
)
(27
)
Money market
17,713,726
16,320,017
15,617,717
15,149,215
14,478,504
34
22
Savings
6,183,249
5,882,179
5,959,774
5,790,334
5,584,294
20
11
Time certificates of deposit
9,998,573
9,270,770
7,894,420
6,625,072
6,788,669
31
47
Total deposits
$
51,404,966
$
48,049,026
$
46,448,858
$
45,397,170
$
44,992,686
28
%
14
%
Mix:
Non-interest-bearing
21
%
21
%
21
%
23
%
23
%
NOW and interest-bearing demand deposits
11
11
12
13
13
Wealth management deposits(2)
3
3
3
4
4
Money market
34
34
34
33
32
Savings
12
12
13
13
13
Time certificates of deposit
19
