Financial Performance - Wintrust recorded net income of $164.2 million for Q3 2023, a 15% increase from $143.0 million in Q3 2022[185] - Net income for Q3 2023 totaled $164.2 million, an increase of $21.2 million, or 15%, compared to Q3 2022[205] - Comprehensive income for Q3 2023 was a loss of $4.4 million, significantly improved from a loss of $72.7 million in Q3 2022[185] - The return on average common equity increased to 13.35% in Q3 2023, compared to 12.31% in Q3 2022, indicating improved profitability[191] - The efficiency ratio (H/(D+F-G)) for Q3 2023 was 57.18%, compared to 58.59% in Q3 2022, indicating improved operational efficiency[1] Income and Revenue - Net interest income for Q3 2023 was $462.4 million, a 15% increase compared to $401.4 million in Q3 2022, driven by a $3.3 billion increase in average loans[187] - Non-interest income rose to $112.5 million in Q3 2023, up from $101.5 million in Q3 2022, attributed to increased fees from covered call options and operating lease income[188] - Non-interest income for Q3 2023 was $112.5 million, compared to $101.5 million in Q3 2022[1] - The company reported a pre-tax income, excluding provision for credit losses (non-GAAP), of $244.8 million for Q3 2023[1] Assets and Loans - The loan portfolio increased to $41.4 billion as of September 30, 2023, up from $39.2 billion at December 31, 2022, reflecting organic growth in various portfolios[186] - Total assets increased by 6% to $55.6 billion as of September 30, 2023, compared to $52.4 billion at the end of 2022[191] - Total earning assets for Q3 2023 were $51.01 billion, compared to $49.36 billion in Q2 2023 and $47.75 billion in Q3 2022[212] - The company’s loans, net of unearned income, increased to $39,974,840 as of September 30, 2023, compared to $36,050,185 in 2022, reflecting a growth of 8.0%[218] Expenses - Non-interest expense totaled $330.1 million in Q3 2023, an 11% increase from $296.5 million in Q3 2022, primarily due to higher salaries and employee benefits[189] - Total non-interest expense rose by $80.4 million, or 9%, to $949.8 million for the nine months ended September 30, 2023, compared to $869.4 million in the same period of 2022[231] - Salaries and employee benefits increased by $38.3 million, or 7%, to $554.0 million for the nine months ended September 30, 2023, compared to $515.8 million in the same period of 2022[231] Credit Losses and Allowances - The total allowance for credit losses is critical, as it represents management's estimate of expected credit losses over the life of financial assets[201] - The allowance for credit losses at the end of the period was $399.15 million, compared to $315.03 million at the end of Q3 2022[275] - The company reported a provision for credit losses of $19.95 million for the three months ended September 30, 2023, compared to $6.19 million for the same period in 2022[275] - The allowance for loan and investment security losses was $319.5 million in Q3 2023, up from $302.6 million in Q2 2023 and $260.3 million in Q3 2022[212] Deposits and Funding - Total deposits grew to $44.99 billion, a 5% increase from $42.80 billion at the end of 2022[191] - Total average deposits for Q3 2023 were $44.1 billion, an increase of $1.9 billion, or 4%, from Q3 2022[279] - The company had approximately $15.3 billion of uninsured deposits as of September 30, 2023, representing about 28% of total deposits[283] - Brokered deposits as a percentage of total deposits increased to 8.2% as of September 30, 2023, from 5.9% in the previous year[281] Capital and Ratios - The Tier 1 capital ratio as of September 30, 2023, was 10.2%, up from 9.9% a year earlier, indicating a year-over-year increase of 3.0%[288] - The Company’s total capital ratio remained stable at 12.0% as of September 30, 2023, consistent with the previous quarter and up from 11.8% a year earlier[288] - The average Tier 1 leverage ratio was 9.2% as of September 30, 2023, slightly down from 9.3% in the previous quarter but up from 8.8% a year earlier[288] Market and Economic Conditions - The Company acknowledges the potential adverse effects of the COVID-19 pandemic on its financial results and operations[299] - Management believes reserves are appropriate to absorb expected losses, but significant increases may occur due to ongoing macroeconomic uncertainty[270] - The Company is focused on managing risks associated with technological changes that allow consumers to complete financial transactions without banks[299]
Wintrust Financial Corporation(WTFCM) - 2023 Q3 - Quarterly Report