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Sep 30, 2023
Wintrust Q3 2023 Earnings Report
Wintrust reported net income of $164.2 million, or $2.53 per diluted common share, for Q3 2023, marking a 6% increase in diluted earnings per common share compared to the second quarter of 2023 and a 14% increase compared to Q3 2022.
Key Takeaways
Wintrust Financial Corporation announced strong Q3 2023 results, with record net interest income of $462.4 million and net income of $164.2 million. Deposit growth of approximately $1 billion and loan growth of approximately $423 million contributed to the positive performance. Credit metrics remained strong and at historically low levels.
Total deposits grew by approximately $1 billion, or 9% annualized.
Total loans increased by approximately $423 million, or 4% annualized. Adjusting for the impact of a loan sale transaction, total loans would have increased $767 million, or 7% annualized.
Record quarterly net interest income of $462.4 million, increasing approximately $14.8 million primarily due to strong growth in earning assets.
Net charge-offs totaled $8.1 million or eight basis points of average total loans on an annualized basis.
Wintrust
Wintrust
Wintrust Revenue by Segment
Revenue by Segment
Wealth Management Revenue
CapyFin.com Forward Guidance
Assuming a similar interest rate environment, Wintrust believes its net interest margin will be relatively stable for the remainder of 2023 and entering 2024. The combination of balance sheet growth and a stable net interest margin is expected to continue to grow net interest income.
Positive Outlook
- Continued momentum into the fourth quarter.
- Winning business and expanding the franchise.
- Well-positioned in the markets.
- Growing deposit and loan relationships.
- Capital ratios will benefit from the increased earnings.
Challenges Ahead
- Net interest margin was within our expected range, down slightly due primarily to the impact of hedging activities.
- Occupancy costs of approximately $2.9 million from the impairment of two Company-owned buildings that are no longer being used.
- Data processing costs of approximately $1.5 million from the termination of a duplicate service contract related to the acquisition of a wealth management business in 2023.
- Other salary costs of approximately $1.6 million related to acquisition-related severance charges and other contractually due compensation costs.
- Mortgage banking revenue decreased by $2.6 million primarily due to an unfavorable valuation related change in the Company’s held-for-sale portfolio