Financial Performance - Net income for the first nine months of 2024 was $509.7 million, or $7.67 per diluted common share, compared to $499.1 million, or $7.71 per diluted common share for the same period in 2023[1]. - Net income for Q3 2024 was $170.0 million, a 12% increase from $152.4 million in Q2 2024[49]. - Net income for the third quarter of 2024 was $170,001 thousand, reflecting a 11.3% increase from $152,388 thousand in the previous quarter[52]. - The company reported an income before taxes of $232,709,000 for Q3 2024, compared to $211,343,000 in Q2 2024, showing a growth of 10.1%[57]. - The return on average assets for the third quarter of 2024 was 1.11%, compared to 1.07% in the previous quarter[52]. - The common equity to assets ratio improved to 9.4% as of September 30, 2024, up from 8.6% a year earlier[52]. - Cash dividends declared per common share remained stable at $0.45 for the last three quarters, compared to $0.40 in the same period last year[52]. Loan and Deposit Growth - Total loans increased by approximately $2.4 billion in Q3 2024, including $1.3 billion from the Macatawa acquisition; excluding Macatawa, total loans increased by $1.1 billion or 10% annualized[4]. - Total deposits rose by approximately $3.4 billion in Q3 2024, with $2.3 billion from Macatawa; excluding Macatawa, total deposits increased by $1.1 billion or 9% annualized[4]. - Total loans reached $47,067,447 thousand, up 5.8% from $44,675,531 thousand in the previous quarter[52]. - Total deposits increased to $51,404,966 thousand, a rise of 7.8% from $48,049,026 thousand in the previous quarter[52]. - Total deposits rose to $51,404,966,000, reflecting a 28% increase from the previous quarter and a 14% increase year-over-year[60]. - Non-interest-bearing deposits remained at 21% of total deposits at the end of Q3 2024, increasing by $708 million compared to Q2 2024[5]. Interest Income and Margin - Net interest income increased to $502.6 million in Q3 2024, up from $470.6 million in Q2 2024, primarily due to average earning asset growth and the addition of Macatawa[6]. - The company anticipates net interest margin to remain in the 3.50% range in Q4 2024 and into 2025, supported by stable net interest margin and continued balance sheet growth[3]. - The net interest margin for the third quarter of 2024 was 3.49%, slightly down from 3.50% in the previous quarter[52]. - Total interest income for Q3 2024 was $908,604,000, an increase of 6.9% from $849,979,000 in Q2 2024[57]. - Net interest income after provision for credit losses for Q3 2024 was $480,249,000, up from $430,549,000 in Q2 2024, reflecting a growth of 11.5%[57]. Non-Interest Income and Expenses - Other income decreased by $5.1 million in Q3 2024 compared to Q2 2024, primarily due to a gain recognized in Q2 2024 from a loan sale transaction[33]. - Non-interest expenses totaled $360.7 million in Q3 2024, an increase of $20.3 million from $340.4 million in Q2 2024, with the Macatawa acquisition contributing approximately $10.1 million to this increase[35]. - Total Non-Interest Income for Q3 2024 was $113,147,000, a decrease of $8,000,000 or 7% compared to Q2 2024, but an increase of $669,000 or 1% compared to Q3 2023[90]. - Total non-interest expense for Q3 2024 was $360,687,000, an increase of $20,334,000 or 6% compared to Q2 2024, and an increase of $30,632,000 or 9% compared to Q3 2023[94]. Credit Quality and Allowance for Losses - Net charge-offs totaled $26.7 million in Q3 2024, a decrease from $30.0 million in Q2 2024, with net charge-offs as a percentage of average total loans at 23 basis points[25]. - Non-performing loans totaled $179.7 million, or 0.38% of total loans, at the end of Q3 2024, compared to $174.3 million, or 0.39% of total loans, at the end of Q2 2024[27]. - The allowance for credit losses was $436.2 million as of September 30, 2024, relatively unchanged from $437.6 million as of June 30, 2024[23]. - The allowance for loan losses slightly decreased to $360,279 thousand from $363,719 thousand, indicating a stable risk management approach[56]. - The provision for credit losses in Q3 2024 was $22,334,000, a decrease from $40,061,000 in Q2 2024, indicating improved credit quality[57]. Acquisitions and Strategic Initiatives - The acquisition of Macatawa is expected to enhance Wintrust's presence in the west Michigan market, leveraging a compatible management team and reputable brand[3]. - The company completed the acquisition of Macatawa on August 1, 2024, issuing approximately 4.7 million shares and recording goodwill of approximately $144.6 million[45]. - The company plans to expand its community bank subsidiaries and branch offices, indicating a focus on growth strategies[101]. Market and Economic Conditions - The Company faces potential risks including economic conditions affecting liquidity and loan portfolio performance, particularly in the event of a U.S. government debt default or rating downgrade[103]. - Changes in interest rates and market conditions could materially affect the Company's net interest income and profitability[103]. - The Company is subject to competitive pressures in the financial services sector, which may impact pricing and market share[103].
Wintrust Financial Corporation(WTFCM) - 2024 Q3 - Quarterly Results