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Jun 30, 2022
Wintrust Q2 2022 Earnings Report
Reported strong earnings momentum and core fundamentals, with net interest income and margin expanding meaningfully.
Key Takeaways
Wintrust Financial Corporation reported net income of $94.5 million, or $1.49 per diluted common share for the second quarter of 2022. The company experienced strong earnings momentum and core fundamentals, with net interest income and margin expanding meaningfully. Exceptional, diversified growth was seen in the loan portfolio while maintaining historically good credit metrics.
Total loans, excluding PPP loans, increased by $1.9 billion, or 22% on an annualized basis.
Net interest income increased by $38.5 million due to improvement in net interest margin.
Net interest margin increased by 32 basis points primarily due to increasing loan yields and the deployment of liquidity to fund loan growth.
Non-performing loans remained historically low but increased to 0.20% of total loans.
Wintrust
Wintrust
Wintrust Revenue by Segment
Revenue by Segment
Wealth Management Revenue
CapyFin.com Forward Guidance
Wintrust expects net interest margin will continue to expand in the third and fourth quarters of 2022 and could approach 3.50% by the end of 2022.
Positive Outlook
- Expects to leverage differentiated, diversified loan portfolio to outperform peers with respect to loan growth.
- Focused on taking advantage of market opportunities to prudently deploy excess liquidity into earning assets including core and niche loans and investment securities.
- Maintaining an interest rate sensitive asset portfolio.
- Opportunistically evaluating the acquisition market which has been active for both banks and business lines of various sizes.
- Seeking to minimize dilution in acquisition targets.
Challenges Ahead
- Based on limited inventory and elevated mortgage rates, expect that mortgage originations in the third quarter of 2022 will decline relative to the second quarter of 2022.
- Uncertain economic conditions may persist in the coming quarters.
- The impact of such decline on earnings is expected to be small relative to the anticipated growth in net interest income.
- The Company remains diligent in consideration of acquisition targets and intends to be prudent in its decision making.
- Always seeking to minimize dilution.