Mar 31, 2020

Wintrust Q1 2020 Earnings Report

Reported a decrease in net income and diluted earnings per share compared to the prior quarter and the first quarter of 2019.

Key Takeaways

Wintrust Financial Corporation reported a net income of $62.8 million for Q1 2020. The company experienced significant balance sheet growth, stable net interest income, and strong mortgage banking revenue. However, they also saw an increased provision for credit losses due to CECL implementation and COVID-19 economic conditions.

Total assets increased by $2.2 billion.

Total loans increased by $1.0 billion.

Total deposits increased by $1.4 billion.

Net income was $62.8 million, or $1.04 per diluted common share.

Total Revenue
$375M
Previous year: $344M
+9.0%
EPS
$1.04
Previous year: $1.52
-31.6%
Net Interest Margin
3.12%
Previous year: 3.7%
-15.7%
Net Overhead Ratio
1.33%
Previous year: 1.72%
-22.7%
Gross Profit
$374M
Previous year: $343M
+9.0%
Cash and Equivalents
$2.29B
Previous year: $271M
+746.6%
Free Cash Flow
-$401M
Previous year: $74.1M
-641.6%
Total Assets
$38.8B
Previous year: $32.4B
+19.9%

Wintrust

Wintrust

Wintrust Revenue by Segment

Forward Guidance

Wintrust has experienced significant growth in recent quarters and believes that their opportunities for both internal and external growth remain consistently strong, while they continue to carefully monitor the COVID-19 pandemic and evaluate the impact that it could have on the economy, their customers and their business.

Positive Outlook

  • Continue to carefully monitor the COVID-19 pandemic.
  • Evaluate the impact that it could have on the economy.
  • Evaluate the impact that it could have on the customers.
  • Evaluate the impact that it could have on the business.
  • Remain focused on navigating the current environment by actively monitoring and managing the credit portfolio.

Challenges Ahead

  • The severity, magnitude and duration of the COVID-19 pandemic and the direct and indirect impact of such pandemic
  • The disruption of global, national, state and local economies associated with the COVID-19 pandemic
  • The impact of the COVID-19 pandemic on our financial results, including possible lost revenue and increased expenses (including the cost of capital), as well as possible goodwill impairment charges
  • Economic conditions that affect the economy, housing prices, the job market and other factors that may adversely affect the Company’s liquidity and the performance of its loan portfolios, particularly in the markets in which it operates
  • Negative effects suffered by us or our customers resulting from changes in U.S. trade policies

Revenue & Expenses

Visualization of income flow from segment revenue to net income