Financial Performance - Wintrust recorded net income of $154.8 million for Q2 2023, a 64% increase from $94.5 million in Q2 2022[190]. - Net income for Q2 2023 was $154.8 million, a 64% increase from $94.6 million in Q2 2022[210]. - Return on average common equity increased to 12.79% in Q2 2023, compared to 8.53% in Q2 2022, indicating improved profitability[196]. - The company reported a return on average common equity of 12.79% for Q2 2023, down from 15.67% in Q2 2022[210]. - The effective tax rate for Q2 2023 was 26.81%, compared to 28.21% in Q2 2022, reflecting a decrease in the effective tax rate[5]. Income and Revenue - Net interest income rose to $447.5 million in Q2 2023, a 32% increase compared to $337.8 million in Q2 2022, driven by a $4.2 billion increase in average loans[192]. - Non-interest income totaled $113.0 million in Q2 2023, up from $102.9 million in Q2 2022, with no losses on investment securities compared to $7.8 million in losses in the prior year[193]. - Non-interest income for Q2 2023 was $113.0 million, up from $107.8 million in Q2 2022[211]. - Wealth management revenue, which includes trust and asset management, increased by 8% to $33,858 thousand for the three months ended June 30, 2023, compared to $31,369 thousand in 2022[225]. - Mortgage banking income decreased by 10% to $29,981 thousand for the three months ended June 30, 2023, down from $33,314 thousand in the same period of 2022[225]. Assets and Liabilities - Total assets reached $54.3 billion at June 30, 2023, a 7% increase from $51.0 billion at June 30, 2022[196]. - Total assets grew to $52,340,090 thousand as of June 30, 2023, from $49,427,225 thousand in June 2022, marking an increase of 3.7%[219]. - Total earning assets for Q2 2023 were $49.36 billion, an increase from $48.81 billion in Q1 2023 and $46.44 billion in Q2 2022[218]. - The total assets of the company reached $52.60 billion in Q2 2023, up from $52.08 billion in Q1 2023 and $49.35 billion in Q2 2022[218]. - Total funding was $47.4 billion at June 30, 2023, up from $44.9 billion at June 30, 2022[247]. Loans and Credit Quality - The loan portfolio increased to $41.0 billion at June 30, 2023, up from $39.2 billion at December 31, 2022, reflecting organic growth in various segments[191]. - The allowance for credit losses is critical, with 82% of total assets in loan and held-to-maturity debt securities[206]. - The company anticipates that changes in macroeconomic variables will significantly impact the allowance for credit losses[207]. - The allowance for credit losses at the end of the period was $387.4 million, compared to $312.1 million at the same time last year[280]. - Total non-performing loans increased to $108.7 million as of June 30, 2023, from $100.7 million on March 31, 2023, reflecting a rise in non-performing assets[274]. Expenses - Non-interest expense increased by 11% to $320.6 million in Q2 2023, primarily due to higher salaries, employee benefits, and marketing expenses[194]. - Total non-interest expense increased by $46.8 million, or 8%, to $619.8 million for the six months ended June 30, 2023, compared to $572.9 million in the same period of 2022[4]. - Efficiency ratio for Q2 2023 was 57.20%, compared to 53.01% in Q2 2022, indicating increased operational costs[211]. - Salaries and employee benefits increased by $31.5 million, or 17%, to $216.0 million for the six months ended June 30, 2023, compared to $184.5 million in the same period of 2022[3]. Deposits and Liquidity - Total deposits grew to $44.0 billion at June 30, 2023, a 3% increase from $42.6 billion at June 30, 2022[196]. - Average deposits for Q2 2023 were $42.5 billion, an increase of $1.2 billion or 3% from Q2 2022[285]. - The company maintained a strong liquidity position, benefiting from a solid deposit base and access to various funding sources[195]. - Brokered deposits amounted to $4.1 billion, representing 9.3% of total deposits as of June 30, 2023, compared to 4.2% a year earlier[287]. - The company had approximately $14.1 billion in uninsured deposits, which accounted for about 27% of total deposits[289]. Capital and Shareholder Returns - Total shareholders' equity as of June 30, 2023, was $5.04 billion, slightly up from $5.02 billion as of June 30, 2022[210]. - The Company declared a quarterly cash dividend of $0.40 per common share in January and April 2023, an increase from $0.34 per share in the same months of 2022[298]. - The Company is committed to maintaining capital levels above the "Well Capitalized" standards established by the Federal Reserve[299]. - The Tier 1 capital ratio remained stable at 10.1% for both June 30, 2023, and March 31, 2023, compared to 9.9% a year earlier[294]. - The Company sold 3,450,000 shares of common stock in 2022, generating net proceeds of approximately $285.7 million[301]. Risk Management and Economic Outlook - The company actively monitors its loan portfolios to identify problem credits, with management emphasizing the importance of timely assessments amid macroeconomic uncertainties[275]. - The company anticipates potential impacts on its financial condition from economic conditions, including housing prices and job market fluctuations[303]. - The company acknowledges the potential impact of changes in U.S. monetary policy and regulatory requirements on its financial performance[305]. - The company is focused on managing risks associated with technology and cybersecurity, which may impact operations and customer trust[305]. - The company recognizes the potential impact of the COVID-19 pandemic on its operations and financial results[305].
Wintrust Financial Corp Series F Pfd(WTFCN) - 2023 Q2 - Quarterly Report