WINTRUST FINL(US:WTFCP)2024-11-08 21:38Financial 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 increased gains on 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]. - Total non-interest income increased by $41.6 million, or 12%, to $374.9 million for the nine months ended September 30, 2024, compared to $333.3 million for the same period in 2023[205]. - The effective tax rate for the third quarter of 2024 was 26.95%, slightly down from 26.98% in the third quarter of 2023, with income tax expense recorded at $62.7 million[224]. Loan and Deposit Growth - 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]. - 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[264]. - Total deposits increased by $6.4 billion, or 14%, to $51.4 billion as of September 30, 2024, compared to the previous year[262]. - The company originated approximately $4.8 billion in premium finance receivables in Q3 2024, compared to $4.6 billion in the same period of 2023[238]. Asset Growth - Total assets reached $63.79 billion at the end of Q3 2024, a 15% increase from $55.56 billion a year earlier[176]. - The company’s total assets (GAAP) as of September 30, 2024, were $59,781,516 thousand, compared to $55,555,246 thousand a year earlier[190]. - Total assets grew to $60.9 billion in Q3 2024, compared to $57.5 billion in Q2 2024 and $54.4 billion in Q3 2023[196]. - The total average assets rose to $60.92 billion in Q3 2024, up from $57.49 billion in Q2 2024 and $54.38 billion in Q3 2023[233]. Interest Income and Margin - Net interest income rose to $502.6 million in Q3 2024, a 9% increase compared to $462.4 million in Q3 2023, driven by a $5.2 billion increase in average loans[172]. - Net interest income for Q3 2024 was $470,610 thousand, compared to $462,358 thousand in Q3 2023, reflecting an increase[190]. - The net interest margin for Q3 2024 was 3.49%, down from 3.60% in Q3 2023, primarily due to higher rates on interest-bearing liabilities[172]. - The net interest margin (GAAP) for Q3 2024 was 3.50%, down from 3.60% in Q3 2023[190]. - The interest rate spread remained stable at 2.58% for Q3 2024, consistent with Q2 2024[196]. Non-Interest Expense - 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%, compared to $192.3 million for the same period in 2023, driven by higher commissions and increased employee count due to the Macatawa acquisition[219]. Credit Quality and Allowance for Losses - The allowance for credit losses is critical, representing management's estimate of expected credit losses over the life of financial assets[185]. - The allowance for credit losses at the end of the period was $435.7 million, compared to $399.2 million at the same time last year, representing an increase of 9%[260]. - Non-performing loans at the end of the period were $179.7 million, up from $133.1 million a year earlier, reflecting an increase of 35%[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]. - The company continues to actively monitor its loan portfolios to identify problem credits in a timely manner amid ongoing macroeconomic uncertainty[255]. Market Performance - The market price per common share increased by 44% to $108.53 compared to $75.50 a year earlier[176]. - The Tier 1 capital ratio improved to 10.6% as of September 30, 2024, compared to 10.2% in 2023, indicating stronger capital adequacy[269]. - The average equity-to-total average assets ratio was 9.8% as of September 30, 2024, up from 9.3% in 2023, indicating improved capital efficiency[269]. Forward-Looking Statements and Risks - Forward-looking statements indicate potential growth through acquisitions and internal strategies, though actual results may vary due to economic conditions and market risks[278]. - The company anticipates potential risks including economic conditions affecting liquidity and loan portfolio performance[278]. - The company may face increased credit loss allowances due to defaults and losses on its loan portfolio[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 pricing and market share[278].