NASDAQ$WTFC

Wintrust Financial Corporation · Q2 2021 earnings

Q2 2021 earnings · · Investor relations

Briefing

Reported net income of $105.1 million, reflecting a decrease compared to the previous quarter but a substantial increase compared to the same quarter last year. The company experienced loan growth excluding PPP loans, increased net interest income, and a decline in mortgage banking revenue.

Wintrust Financial Corporation reported a net income of $105.1 million for Q2 2021, a decrease from $153.1 million in the previous quarter but a significant increase from $21.7 million in Q2 2020. Total assets increased to $46.7 billion. Loan growth excluding PPP loans was strong, and net interest income increased, while mortgage banking revenue decreased.

  • Total loans, excluding PPP loans, increased by $1.2 billion, or 15% annualized.
  • PPP loans declined by $1.4 billion due to forgiveness payments.
  • Total deposits increased by $932 million, including a $499 million increase in non-interest bearing deposits.
  • Net interest income increased by $17.7 million due to earning asset growth and PPP loan fee accretion.

Headline financials

Total Revenue

$409M

Previous: $425M-3.8%
EPS (adj)

$1.70

Previous: $0.34+400.0%
Net Interest Margin

2.6%

Previous: 2.7%-4.0%
Net Overhead Ratio

1.3%

Previous: 0.9%+41.9%
ROA

0.9%

No prior period
ROACE

10.2%

No prior period
Capital Expenditures

-$12.1M

Previous: -$38.1M+68.2%
Free Cash Flow

$93M

Previous: -$16.5M+664.5%
Net Income

$105M

Previous: $21.7M+385.3%
Operating Income

$325M

Previous: $192M+69.5%
Gross Profit

$394M

Previous: $290M+35.7%
Cash & Equivalents

$5.14B

Previous: $4.36B+17.9%
Total Assets

$46.7B

Previous: $43.5B+7.3%
Stock-Based Comp

$3.33M

Previous: $541K+515.9%

Revenue & EPS history

Wintrust · Revenue · Quarterly

$409M

Q2 2021-3.8%vs Q2 2020
Beat estimate in 10 of 16 quarters(63%)
ActualEstimate

Forward guidance

Wintrust expects to leverage its diversified loan portfolio for loan growth and net interest income expansion. The company is focused on deploying excess liquidity into earning assets and is evaluating acquisition opportunities, while managing operating expenses for enhanced profitability.

Tailwinds

  • Leverage differentiated, diversified loan portfolio to outperform peers in loan growth.
  • Expand net interest income by focusing on loan growth.
  • Prudently deploy excess liquidity into earning assets, including core and niche loans and investment securities.
  • Opportunistically evaluate the acquisition market for banks and business lines of various sizes.
  • Evaluate operating expense base on an ongoing basis to enhance future profitability.

Headwinds

  • Lower gain on sale margins impacted production margin in the second quarter of 2021.
  • Mortgage originations pipeline declined.
  • Mortgage servicing rights decreased in value related to changes in fair value model assumptions.
  • Decline in long-term interest rates limited investment portfolio growth due to lack of adequate market returns.
  • The contractual period covering contingent consideration ends in January 2023.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q2 2021

Historical avgQ2 2021

-0.3%

Avg return

Earnings day

+0.7%

Avg return

5 days after

+2.2%

Avg return

30 days after

54%

37 / 68 earnings

Positive

+9.3%

Q3 2021

Best reaction

-9.7%

Q2 2019

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026+0.8%-0.6%+0.5%
Q4 2025+4.5%+1.2%+8.0%
Q3 2025+2.2%+2.0%+1.1%
Q2 2025-0.6%+0.7%+6.0%
Q1 2025+5.2%+9.2%+17.0%
Q3 2024-0.5%-2.0%+13.4%
Q2 2024-5.0%-3.1%-10.0%
Q1 2024+0.9%+5.1%+7.9%
Q4 2023+2.1%+6.1%+3.5%
Q3 2023+1.5%-1.6%+12.0%
Q2 2023+3.3%+2.1%-5.1%
Q1 2023-1.4%-3.1%-8.9%
Q4 2022-1.9%+2.7%+7.1%
Q3 2022+0.9%-0.6%-4.5%
Q2 2022+1.8%+2.3%+5.7%
Q1 2022+7.4%+3.9%-9.1%
Q4 2021-2.7%-3.5%-3.2%
Q3 2021+9.3%+9.6%+10.3%
Q2 2021-1.2%-3.1%+0.6%
Q1 2021-6.2%-1.3%-1.8%
Q4 2020-5.5%-5.5%-0.3%
Q3 2020+3.2%+0.7%+12.3%
Q2 2020+5.1%+7.3%+3.6%
Q1 2020+4.7%+6.4%+14.5%
Q4 2019-5.4%-7.1%-5.7%
Q3 2019-2.2%+0.2%+1.9%
Q2 2019-9.7%-7.4%-15.4%
Q1 2019+1.8%+0.1%-3.8%
Q4 2018-5.1%-2.5%+0.0%
Q3 2018-4.6%-8.6%-6.9%
Q2 2018+3.1%+2.6%+2.6%
Q1 2018+1.0%+3.7%+7.4%
Q4 2017+0.3%+0.2%-1.3%
Q3 2017+2.1%+1.8%+0.6%
Q2 2017+2.4%-0.1%-7.3%
Q1 2017+1.3%+6.3%+4.5%
Q4 2016+0.0%+2.9%+10.5%
Q3 2016+0.6%+0.8%+16.8%
Q2 2016-1.1%+0.5%+1.6%
Q1 2016+8.3%
Q4 2015-7.9%
Q3 2015-8.8%
Q2 2015+3.1%
Q1 2015+2.2%
Q4 2014+1.4%
Q3 2014+1.9%
Q2 2014+3.1%
Q1 2014-1.0%
Q4 2013-3.1%
Q3 2013+0.4%
Q2 2013+1.1%
Q1 2013-3.5%
Q4 2012-1.2%
Q3 2012-1.7%
Q2 2012+0.4%
Q1 2012+0.6%
Q4 2011+0.4%
Q4 2008-5.5%
Q3 2011-5.5%
Q2 2011-4.5%
Q4 2010-4.5%
Q1 2010+0.5%
Q1 2011+0.2%
Q4 2009-1.6%
Q3 2009-2.2%
Q3 2010-2.2%
Q2 2009-1.0%
Q2 2010-1.0%

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