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Jun 30, 2023
Wintrust Q2 2023 Earnings Report
Reported a net income for the second quarter, which was the second highest in the company's history, but decreased compared to the previous quarter, while deposits and loans experienced growth.
Key Takeaways
Wintrust Financial Corporation announced quarterly net income of $154.8 million or $2.38 per diluted common share for the second quarter of 2023. Total deposits grew by $1.3 billion, and total loans increased by $1.5 billion.
Total deposits grew by $1.3 billion, or 12.4% annualized.
Non-deposit borrowings decreased by $208.2 million.
Total loans increased by $1.5 billion, or 14.8% annualized.
Net interest margin decreased to 3.64% due to higher deposit costs but remained relatively stable throughout the second quarter.
Wintrust
Wintrust
Wintrust Revenue by Segment
Revenue by Segment
Wealth Management Revenue
CapyFin.com Forward Guidance
The Company expects net interest income to increase in the third quarter given the strong balance sheet growth paired with a stable net interest margin.
Positive Outlook
- Maintaining the net interest margin between 3.60% and 3.70% for the remainder of the year.
- Further upward repricing primarily in premium finance receivable portfolios to mitigate higher deposit costs as deposit pricing stabilizes.
- Continuing to grow deposits to enhance liquidity and support future asset growth.
- Remaining well positioned for higher interest rates.
- Total loans as of June 30, 2023 were $917 million higher than average total loans in the second quarter of 2023, which is expected to benefit the third quarter.
Challenges Ahead
- Continued acceleration in deposit pricing.
- Impact of hedging activity.
- Uncertainty of the future interest rate environment.
- Potential fluctuations in the net interest margin in future years.
- Vulnerability to existing market conditions.