Financial Performance - Wintrust recorded net income of $170.0 million for Q3 2024, a 4% increase from $164.2 million in Q3 2023[170]. - Net income for Q3 2024 totaled $170.0 million, an increase of $5.8 million, or 4%, compared to Q3 2023[189]. - Non-interest income totaled $113.1 million in Q3 2024, slightly up from $112.5 million in Q3 2023, with gains in investment securities and wealth management revenue[173]. - Non-interest income for Q3 2024 was $121,147 thousand, up from $112,478 thousand in Q3 2023[190]. - The company reported a return on average common equity of 11.61% for Q3 2024, down from 13.35% in Q3 2023[190]. - The company recorded income tax expense of $62.7 million in the third quarter of 2024, compared to $60.7 million in the third quarter of 2023, with effective tax rates of 26.95% and 26.98%, respectively[224]. Loan Portfolio and Interest Income - The loan portfolio increased to $47.1 billion at September 30, 2024, up from $41.4 billion a year earlier, reflecting organic growth and $1.3 billion from the Macatawa acquisition[171]. - Net interest income rose to $502.6 million in Q3 2024, a 9% increase from $462.4 million in Q3 2023, driven by a $5.2 billion increase in average loans[172]. - Net interest income for Q3 2024 reached $502.6 million, up $32.0 million from Q2 2024 and $40.2 million from Q3 2023[196]. - Total average loans reached $45.92 billion in Q3 2024, representing 81% of total average earning assets, consistent with previous quarters[233]. - The total loans, net of unearned income, amounted to $34.59 billion as of September 30, 2024, with a significant portion subject to variable rates[244]. - The company reported a total of $28.47 billion in variable rate loans, indicating a strong exposure to interest rate fluctuations[244]. Assets and Deposits - Total assets reached $63.79 billion at the end of Q3 2024, a 15% increase from $55.56 billion a year earlier[176]. - Total deposits grew to $51.40 billion, up 14% from $44.99 billion in the previous year[176]. - Total average deposits for Q3 2024 were $48.9 billion, an increase of $4.9 billion, or 11%, from Q3 2023, driven by the Macatawa acquisition and enhanced marketing efforts[264]. - Total deposits increased by $6.4 billion, or 14%, to $51.4 billion as of September 30, 2024, compared to the same date in 2023[262]. - Brokered deposits accounted for 7.9% of total deposits as of September 30, 2024, down from 8.2% in 2023[266]. Non-Interest Expenses - Non-interest expense increased by 9% to $360.7 million in Q3 2024, primarily due to higher salaries and employee benefits[174]. - Non-interest expense for the three months ended September 30, 2024, increased by $30.6 million, or 9%, to $360.7 million compared to $330.1 million for the same period in 2023[218]. - Salaries and employee benefits for the three months ended September 30, 2024, totaled $211.3 million, an increase of $18.9 million, or 10%, from $192.3 million in the same period in 2023[218]. Credit Quality and Allowance for Losses - The allowance for credit losses is a critical accounting estimate, with the loan and held-to-maturity debt securities portfolios representing 80% of total assets[185]. - The allowance for credit losses at the end of the period was $435.7 million, compared to $399.2 million at the end of September 2023, indicating a proactive approach to managing credit risk[260]. - The community banking segment recorded a provision for credit losses of $20.5 million for the three months ended September 30, 2024, compared to $16.7 million for the same period in 2023[227]. - Non-performing loans at the end of the period were $179.7 million, up from $133.1 million at the end of September 2023, reflecting a significant increase in problem credits[256]. - The total non-performing loans reached $179.7 million as of September 30, 2024, compared to $174.3 million as of June 30, 2024[254]. Market and Economic Conditions - The company expects that changes in inflation will not have a material impact on its business compared to other industries[276]. - The company anticipates potential risks affecting its liquidity and loan portfolio performance due to economic conditions and events[278]. - Changes in interest rates could materially affect the company's net interest income and profitability[278]. - Competitive pressures in the financial services sector may impact the pricing of the company's loan and deposit products[278]. Strategic Focus and Growth - The company aims to identify and complete favorable acquisitions to enhance growth[278]. - The company is focused on using technology to meet customer demands and improve operational efficiencies[278]. - The company maintains a commitment to exceed the "Well Capitalized" levels established by the Federal Reserve Board for bank holding companies[273]. - The Company is focused on evaluating liquidity sources, including management of availability with the FHLB and FRB, to ensure sufficient funds for operations[275].
Wintrust Financial Corporation(WTFCM) - 2024 Q3 - Quarterly Report