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 totaled $152.4 million, a decrease of $2.4 million, or 2%, compared to Q2 2023, with diluted earnings per share at $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, compared to $239.9 million in Q2 2023[189] - 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] - 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[206] Loan and Deposit Growth - The loan portfolio increased to $44.7 billion at June 30, 2024, up from $42.1 billion at December 31, 2023, reflecting organic growth across several segments[170] - Total deposits increased by 9% to $48.0 billion at June 30, 2024, from $44.0 billion at June 30, 2023[175] - Total average loans amounted to $43.82 billion in Q2 2024, representing 81% of total average earning assets, consistent with the previous quarter[231] - The company originated approximately $5.5 billion in premium finance receivables in Q2 2024, compared to $5.0 billion in Q2 2023, reflecting strong market conditions[236] - Total average deposits for the second quarter of 2024 were $46.1 billion, an increase of $3.6 billion, or 8%, from the second quarter of 2023[262] Interest Income and Margin - 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] - The net interest margin decreased to 3.50% in Q2 2024 from 3.64% in Q2 2023, primarily due to higher rates on interest-bearing liabilities[171] - The yield on loans, net of unearned income, was 6.90% in Q2 2024, compared to 6.80% in Q1 2024 and 6.23% in Q2 2023[196] - The net interest margin for Q2 2024 was 3.50%, compared to 3.57% in Q1 2024 and 3.64% in Q2 2023[196] - Net interest income for the six months ended June 30, 2024, was $934,804 thousand, an increase from $905,532 thousand for the same period in 2023, reflecting a margin of 3.53% compared to 3.72%[202] Non-Interest Expenses - Non-interest expense increased by 6% to $340.4 million in Q2 2024, mainly due to higher salaries and employee benefits[173] - Salaries and employee benefits increased by $13.6 million, or 7%, for the three months ended June 30, 2024, totaling $198.5 million, primarily due to higher commissions and annual merit increases[220] - Software and equipment expenses rose by $3.0 million, or 12%, for the three months ended June 30, 2024, driven by higher software license fees and depreciation expenses[221] - FDIC insurance expense increased by approximately $5.2 million due to a special assessment on uninsured deposits, contributing to a year-to-date increase in expenses[222] Asset Management - Total assets grew by 10% to $59.8 billion at June 30, 2024, compared to $54.3 billion at June 30, 2023[175] - Total average assets rose to $57.49 billion in Q2 2024, compared to $52.60 billion in Q2 2023, indicating a growth of 9% year-over-year[231] - The company reported a total interest-bearing liabilities of $39,607,973 thousand, an increase from $34,398,722 thousand in the previous year, with an average rate of 3.66% compared to 2.53%[197] - The tangible common equity ratio (non-GAAP) was 7.6% as of June 30, 2024, compared to 7.4% in the previous year[188] Credit Losses and Non-Performing Loans - The allowance for credit losses at the end of the period was $437.1 million, up from $387.4 million a year earlier, 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 the end of June 30, 2024, from $108.7 million at the same time last year, with additions from becoming non-performing totaling $77.5 million for the six months ended June 30, 2024[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] - The percentage of total non-performing loans as a percentage of total assets was 0.32% as of June 30, 2024, up from 0.28% 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] - Changes in interest rates could materially affect the Company's 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 plans to form additional de novo banks or branch offices as part of its growth strategy[276] - The Company continues to evaluate liquidity sources, including management of availability with the FHLB and FRB, to ensure sufficient funds for operations[273] - The Company maintains a commitment to exceed the "Well Capitalized" levels established by the Federal Reserve for bank holding companies[271]
Wintrust Financial Corp Series F Pfd(WTFCN) - 2024 Q2 - Quarterly Report