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Dec 31, 2022
Wintrust Q4 2022 Earnings Report
Wintrust announced fourth quarter results, highlighted by strong net income and record quarterly pre-tax, pre-provision income.
Key Takeaways
Wintrust Financial Corporation reported a net income of $144.8 million, or $2.23 per diluted common share, for Q4 2022. Net interest income and net interest margin expanded, and the loan portfolio continued to grow with low net charge-offs.
Net interest income increased by $55.4 million, or 14%, compared to the third quarter of 2022, driven by net interest margin improvement and loan growth.
Total loans increased by $1.0 billion, or 11% on an annualized basis.
Net charge-offs totaled $5.1 million, or five basis points of average total loans on an annualized basis.
Book value per common share increased by $2.56 to $72.12 as of December 31, 2022.
Wintrust
Wintrust
Wintrust Revenue by Segment
Revenue by Segment
Wealth Management Revenue
CapyFin.com Forward Guidance
Wintrust expects net interest margin to approach 4.00% during the first quarter of 2023, subject to no material change in the consensus projection of interest rates as of the release date.
Positive Outlook
- Company remains an asset driven organization focused on prudently growing loan portfolio.
- Company is confident they can raise funding to support asset growth and drive further net interest income expansion.
- Company is closely watching expenses and believe efficiency ratio will continue to improve.
- Company is opportunistically evaluating the acquisition market for both banks and business lines of various sizes and are excited about recently announced and pending wealth management acquisition.
- Company remains diligent in consideration of acquisition targets and intend to be prudent in their decision making, always seeking to minimize tangible book value dilution.
Challenges Ahead
- Uncertainty in projected interest rates.
- Company is repositioning balance sheet to reduce interest rate sensitivity.
- Company expects to continue strategy, including the use of derivative instruments, in order to mitigate potential negative impacts to net interest margin in a declining interest rate environment.
- Mortgage banking revenue decreased by $9.8 million in the fourth quarter of 2022 as compared to the third quarter of 2022 primarily due to lower production revenue as a result of declining mortgage origination volume in the recent rising rate environment as well as lower production margins.
- Wealth management revenue decreased $2.4 million in the fourth quarter of 2022 as compared to the third quarter of 2022 primarily related to lower fees associated with our tax-deferred like-kind exchange business.