Mar 31, 2023

Wintrust Q1 2023 Earnings Report

Reported record quarterly net income due to strong deposit franchise and balanced business model.

Key Takeaways

Wintrust Financial Corporation reported a record net income of $180.2 million, or $2.80 per diluted common share, for Q1 2023. Total deposits remained stable, and credit metrics remained strong. The net interest margin increased during the quarter, contributing to the record quarterly net income.

Total deposits remained relatively stable, decreasing by $184 million or 0.4%.

Total loans increased by $369 million.

Net interest margin increased by 10 basis points to 3.81%.

Non-performing assets were unchanged at 0.21% of total assets.

Total Revenue
$566M
Previous year: $462M
+22.4%
EPS
$2.8
Previous year: $2.07
+35.3%
Net Interest Margin
3.81%
Previous year: 2.6%
+46.5%
Net Overhead Ratio
1.49%
Previous year: 1%
+49.0%
Return on Average Assets
1.4%
Previous year: 1.04%
+34.6%
Gross Profit
$640M
Previous year: $461M
+38.7%
Cash and Equivalents
$446M
Previous year: $463M
-3.6%
Free Cash Flow
$59.3M
Previous year: $450M
-86.8%
Total Assets
$52.9B
Previous year: $50.3B
+5.2%

Wintrust

Wintrust

Wintrust Revenue by Segment

Forward Guidance

Wintrust remains focused on growing deposits to support future asset growth and is closely watching expenses. The company is also evaluating the acquisition market for both banks and business lines.

Positive Outlook

  • Focused on growing deposits to support future asset growth.
  • Closely watching expenses, striving to grow without a commensurate increase in expense.
  • Opportunistically evaluating the acquisition market for both banks and business lines of various sizes.
  • Excited about recent wealth management acquisition that closed in early April 2023.
  • Remaining diligent in consideration of acquisition targets and intend to be prudent in decision making, always seeking to minimize tangible book value dilution.

Challenges Ahead

  • Uncertainty of the future interest rate environment.
  • Acceleration in deposit pricing.
  • Unfavorable shift in deposit mix.
  • Hedging activities had a seven basis point negative impact on the first quarter net interest margin.
  • Maintaining sufficient liquidity is a fundamental part of our operation and we plan to continue to operate prudently.

Revenue & Expenses

Visualization of income flow from segment revenue to net income