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Mar 31, 2022
Wintrust Q1 2022 Earnings Report
Reported record quarterly pre-tax, pre-provision income with continued expansion of net interest income and strong loan growth.
Key Takeaways
Wintrust Financial Corporation reported a net income of $127.4 million, or $2.07 per diluted common share, for the first quarter of 2022. The company experienced robust loan growth, with loans excluding PPP loans increasing by $796 million. Net interest income increased by $3.3 million primarily due to earning asset growth and improvement in net interest margin.
Total loans, excluding Paycheck Protection Program (“PPP”) loans, increased by $796 million, or 9% on an annualized basis.
Total assets increased by $109 million totaling $50.3 billion as of March 31, 2022.
Net interest income increased by $3.3 million as compared to the fourth quarter of 2021.
Non-performing loans decreased to 0.16% of total loans, as of March 31, 2022, down from 0.21% as of December 31, 2021.
Wintrust
Wintrust
Wintrust Revenue by Segment
Revenue by Segment
Wealth Management Revenue
CapyFin.com Forward Guidance
Wintrust expects to leverage its diversified loan portfolio to outperform peers with respect to loan growth which should allow them to continue to expand net interest income. They are focused on taking advantage of market opportunities to prudently deploy excess liquidity into earning assets including core and niche loans and investment securities while maintaining an interest rate sensitive asset portfolio.
Positive Outlook
- Expect to benefit as short term interest rates rise.
- Approximately 80% of current loan balances are projected to reprice or mature in the next 12 months.
- Assuming an immediate and parallel 25 basis point rate hike, the cumulative increase to net interest income in the subsequent 12 months is approximately $40-$50 million.
- Focused on expanding market share of purchase originations and finding efficiencies in delivery channels to reduce costs.
- The Company’s gross commercial and commercial real estate loan pipelines remained robust as of March 31, 2022 indicating momentum for continued loan growth in the second quarter of 2022.
Challenges Ahead
- Expect that mortgage originations in the second quarter of 2022 will remain relatively similar to the first quarter of 2022.
- Projections incorporate a number of assumptions and could differ materially depending on various factors including competition and the macroeconomic environment.
- The Company has $7.9 billion of variable rate loans tied to one-month LIBOR and $6.8 billion of variable rate loans tied to twelve-month LIBOR.
- The Company is opportunistically evaluating the acquisition market which has been active for both banks and business lines of various sizes.
- The Company remains diligent in its consideration of acquisition targets and intends to be prudent in its decision-making, always seeking to minimize dilution.