Financial Performance - Wintrust recorded net income of $187.3 million for Q1 2024, a 4% increase from $180.2 million in Q1 2023[166]. - Net income for Q1 2024 totaled $187.3 million, an increase of $7.1 million, or 4%, compared to Q1 2023[185]. - Net income per diluted common share for Q1 2024 was $2.89, compared to $2.80 for Q1 2023[185]. - The increase in net income was primarily due to higher net interest income, increased mortgage banking revenue, and a $20.0 million gain from the sale of the RBA division[186]. - The return on average common equity decreased to 14.42% in Q1 2024 from 15.67% in Q1 2023[172]. - Total average shareholders' equity was $5,440,457 million, up from $5,066,196 million in the previous year[178]. - Return on average common equity for the period was 14.42%, compared to 9.93% in the previous year[178]. - Return on average tangible common equity (non-GAAP) was 16.75%, up from 11.73% in the previous year[178]. Loan and Deposit Growth - The loan portfolio increased to $43.2 billion at March 31, 2024, up from $39.6 billion a year earlier, reflecting organic growth in various portfolios[167]. - Total deposits increased by 9% to $46.4 billion at March 31, 2024, from $42.7 billion in the same period last year[172]. - Total funding increased to $50.4 billion as of March 31, 2024, compared to $46.3 billion as of March 31, 2023[218]. - As of March 31, 2024, total loans net of unearned income amounted to $43,230.7 million, with fixed rate loans at $17,370.5 million and variable rate loans at $25,860.2 million[227]. - The commercial and commercial real estate loan portfolios totaled $25,136.9 million, with an allowance for credit losses of $392.6 million as of March 31, 2024, compared to $344.3 million as of March 31, 2023[229]. Income and Expenses - Net interest income for Q1 2024 was $464.2 million, a slight increase of 1% compared to $458.0 million in Q1 2023, with a net interest margin of 3.57%[168]. - Non-interest income rose to $140.6 million in Q1 2024, up from $107.8 million in Q1 2023, driven by a $20.0 million gain from the sale of the Retirement Benefits Advisors division[169]. - Non-interest expense increased by 11% to $333.1 million in Q1 2024, primarily due to higher salaries and employee benefits[170]. - Total non-interest expense for the first quarter of 2024 increased by $34.0 million, or 11%, to $333.1 million compared to $299.2 million in the same period of 2023[206]. - Salaries and employee benefits increased by $18.4 million, or 10%, primarily due to higher commissions and incentive compensation related to increased mortgage production[207]. Asset Growth - Total assets grew by 9% to $57.6 billion at March 31, 2024, compared to $52.9 billion a year earlier[172]. - The total assets of the company reached $55.60 billion in Q1 2024, up from $55.02 billion in Q4 2023 and $52.08 billion in Q1 2023[193]. - Average earning assets for Q1 2024 totaled $52.27 billion, compared to $51.51 billion in Q4 2023 and $48.81 billion in Q1 2023[193]. Credit Quality - The allowance for loan and unfunded lending-related commitment losses increased to 0.99% of total loans, up from 0.95% in the previous year[172]. - The allowance for credit losses at the end of the period was $427.175 million, up from $375.798 million in the previous year[242]. - Total non-performing loans amounted to $148.359 million as of March 31, 2024, compared to $139.030 million at the end of 2023[236]. - The percentage of total non-performing assets to total assets was 0.28% as of March 31, 2024, compared to 0.27% at the end of 2023[236]. - The provision for credit losses for the three months ended March 31, 2024, was $21.691 million, compared to $23.070 million for the same period in 2023[242]. Market and Economic Conditions - The company is focused on managing risks associated with changes in interest rates, which could materially affect its profitability[263]. - The company is facing competitive pressures that may impact the pricing of its loan and deposit products, potentially leading to reduced income[263]. - The company acknowledges the risks associated with technological changes that allow consumers to complete financial transactions without using a bank[265]. - The company is monitoring the impact of regulatory changes on its ability to market products and operate profitably in the mortgage business[265]. - The company is assessing the potential effects of the COVID-19 pandemic on its financial results and operations[265]. Strategic Initiatives - The Company announced the acquisition of Macatawa Bank Corporation, which had approximately $2.7 billion in assets and $2.4 billion in deposits as of December 31, 2023[259]. - The company plans to form additional de novo banks or branch offices as part of its growth strategy[263]. - The company is committed to enhancing its information technology systems to improve operational efficiencies and manage risks[265].
Wintrust Financial Corporation(WTFCM) - 2024 Q1 - Quarterly Report