Financial Performance - Wintrust recorded net income of $152.4 million for Q2 2024, a decrease of 2% from $154.8 million in Q2 2023[169] - Net income for Q2 2024 was $152.4 million, a decrease of $2.4 million, or 2%, compared to Q2 2023, with diluted earnings per share of $2.32 versus $2.38 in the prior year[188] - The company reported a pre-tax income, excluding provision for credit losses, of $251.4 million for Q2 2024[188] - Return on average common equity decreased to 11.61% in Q2 2024 from 12.79% in Q2 2023[175] - Return on average common equity for Q2 2024 was 11.61%, down from 14.42% in Q2 2023[188] Income and Revenue - Net interest income rose to $470.6 million in Q2 2024, a 5% increase from $447.5 million in Q2 2023, driven by a $3.7 billion increase in average loans[171] - Non-interest income totaled $121.1 million in Q2 2024, up from $113.0 million in Q2 2023, primarily due to gains on the sale of premium finance receivables[172] - Non-interest income increased to $140.6 million in Q2 2024, compared to $121.1 million in Q1 2024 and $113.0 million in Q2 2023[188] - Total non-interest income rose by $40.9 million (19%) for the six months ended June 30, 2024, compared to the same period in 2023[204] - Total wealth management revenue rose by $6.4 million (10%) year-to-date, driven by increased asset management fees[205] Expenses - Non-interest expense increased by 6% to $340.4 million in Q2 2024, mainly due to higher salaries and employee benefits[173] - Non-interest expense for the three months ended June 30, 2024, increased by $19.7 million, or 6%, to $340.4 million compared to $320.6 million for the same period in 2023[218] - Salaries and employee benefits for the three months ended June 30, 2024, totaled $198.5 million, an increase of $13.6 million, or 7%, from $184.9 million in the same period in 2023[218] Assets and Deposits - Total assets reached $59.8 billion at June 30, 2024, a 10% increase from $54.3 billion at June 30, 2023[175] - Total deposits grew to $48.0 billion, reflecting a 9% increase compared to $44.0 billion in the previous year[175] - Total average deposits for Q2 2024 were $46.1 billion, an increase of $3.6 billion, or 8%, from Q2 2023, driven by enhanced marketing efforts[262] - Total average assets increased to $57.49 billion in Q2 2024, up from $52.60 billion in Q2 2023[231] Loan Portfolio - The loan portfolio increased to $44.7 billion at June 30, 2024, up from $42.1 billion at December 31, 2023, representing organic growth across several segments[170] - The total average loans amounted to $43.82 billion in Q2 2024, maintaining 81% of total average earning assets, consistent with the previous quarters[231] - The company originated approximately $5.5 billion in premium finance receivables in Q2 2024, up from $5.0 billion in Q2 2023[236] - The total commercial real estate loan portfolio reached $11.95 billion as of June 30, 2024, compared to $10.61 billion as of June 30, 2023, indicating a growth of approximately 12.6% year-over-year[245] Credit Quality - The allowance for credit losses is critical, with 81% of total assets in loans and held-to-maturity debt securities[184] - The allowance for credit losses at the end of the period was $437.1 million, up from $387.4 million at the end of June 30, 2023, reflecting a provision for credit losses of $61.6 million for the six months ended June 30, 2024[258] - Non-performing loans increased to $174.3 million at June 30, 2024, from $108.7 million at June 30, 2023, representing a significant rise in problem credits[254] - Total non-performing loans amounted to $174.3 million as of June 30, 2024, an increase from $148.4 million as of March 31, 2024[252] Market and Economic Conditions - The company expects that changes in inflation will not have a material impact on its business compared to other industries[274] - Economic conditions, including housing prices and job market fluctuations, may adversely affect the company's liquidity and loan portfolio performance[276] - The company faces risks related to changes in interest rates, which could materially affect its net interest income and profitability[276] - Competitive pressures in the financial services sector may impact the pricing of the company's loan and deposit products[276] Strategic Initiatives - The Company is focused on evaluating future acquisitions and growth strategies to enhance its market position[276] - The company plans to form additional de novo banks or branch offices as part of its growth strategy[276] - The liquidity management framework includes stress testing processes to ensure sufficient funds are available for customer needs[272] Shareholder Returns - The Company declared a quarterly cash dividend of $0.45 per common share in January and April 2024, an increase from $0.40 per share in the same months of 2023[270]
Wintrust Financial Corporation(WTFCM) - 2024 Q2 - Quarterly Report