Financial Performance - Wintrust recorded net income of $170.0 million for Q3 2024, a 4% increase from $164.2 million in Q3 2023[171]. - Net income for Q3 2024 totaled $170.0 million, an increase of $5.8 million, or 4%, compared to Q3 2023[190]. - The company recorded an income tax expense of $62.7 million for 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[225]. - The wealth management segment's net income for the nine months ended September 30, 2024, was $40.8 million, compared to $23.6 million for the same period in 2023[231]. Loan Portfolio and Growth - The loan portfolio increased to $47.1 billion as of September 30, 2024, up from $41.4 billion a year earlier, reflecting organic growth and $1.3 billion from the Macatawa acquisition[172]. - The company anticipates continued growth in net interest income, driven by rising interest rates and an expanding loan portfolio[191]. - Mortgage loans originated for sale totaled $766.8 million in Q3 2024, up from $572.6 million in Q3 2023, representing a 34% increase[208]. - The percentage of origination volume from refinancing activities increased to 28% for Q3 2024, compared to 16% for Q3 2023[208]. Income and Expenses - 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[173]. - 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 offset by a decline in mortgage banking revenue[174]. - Non-interest expense increased by 9% to $360.7 million in Q3 2024, primarily due to higher salaries and employee benefits[175]. - Non-interest income for Q3 2024 was $121,147 thousand, up from $112,478 thousand in Q3 2023, indicating growth in fee-based revenue[191]. 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[177]. - Total deposits grew to $51.40 billion, up 14% from $44.99 billion in the previous year[177]. - Total average deposits for Q3 2024 were $48.9 billion, an increase of $4.9 billion, or 11%, from Q3 2023[265]. - Total assets grew to $58,014,347 as of September 30, 2024, from $53,028,199 in 2023, indicating an increase of 9.4%[203]. Credit Quality and Allowance for Losses - The allowance for credit losses is critical, with the loan and held-to-maturity debt securities portfolios representing 80% of total assets[186]. - The allowance for credit losses at the end of the period was $435.7 million, compared to $399.2 million at the end of the same period last year[261]. - Non-performing loans increased to $179.7 million at the end of Q3 2024, up from $133.1 million at the end of Q3 2023[257]. - The total non-performing loans amounted to $179.7 million as of September 30, 2024, compared to $174.3 million as of June 30, 2024[255]. Market and Shareholder Information - The market price per common share increased by 44% to $108.53 compared to $75.50 a year ago[177]. - The Company declared a quarterly cash dividend of $0.45 per common share in January, April, and July of 2024, up from $0.40 per share in the same months of 2023, representing a 12.5% increase[273]. - The total capital ratio as of September 30, 2024, was 12.2%, slightly up from 12.0% in the same period last year, indicating a stable capital position[270]. Strategic Initiatives and Risks - The company plans to form additional de novo banks or branch offices as part of its growth strategy, which may include future acquisitions of banks and specialty finance businesses[279]. - The company faces competitive pressures in the financial services sector that could impact pricing and market share, potentially reducing income from loans and deposits[279]. - Economic conditions, including housing prices and job market fluctuations, may adversely affect the company's liquidity and loan portfolio performance[279]. - The company acknowledges potential reputational harm and negative perceptions of its financial strength as risks to its operations[279].
Wintrust Financial Corp Series F Pfd(WTFCN) - 2024 Q3 - Quarterly Report