NASDAQ$WTFC

Wintrust Financial Corporation · Q3 2020 earnings

Q3 2020 earnings · · Investor relations

Briefing

Reported record net income and strong loan growth amid challenges of COVID-19.

Wintrust Financial Corporation announced record net income of $107.3 million for the third quarter of 2020. The company saw an increase in total assets, total loans, and total deposits. Net interest income decreased, but mortgage banking revenue increased.

  • Wintrust reported record net income of $107.3 million for the third quarter of 2020, up from $21.7 million in the second quarter of 2020.
  • Total loans increased by $733 million or 9% on an annualized basis.
  • Total deposits increased by $193 million as compared to the second quarter of 2020 including $205 million of non-interest bearing deposit growth.
  • Mortgage banking revenue increased by $6.2 million to $108.5 million for the third quarter of 2020 as compared to $102.3 million in the prior quarter.

Headline financials

Total Revenue

$427M

Previous: $380M+12.2%
EPS (adj)

$1.67

Previous: $1.69-1.2%
Net Interest Margin

2.6%

Previous: 3.4%-24.0%
Net Overhead Ratio

0.9%

No prior period
ROA

1.0%

No prior period
ROACE

10.7%

No prior period
Capital Expenditures

-$54.4M

Previous: -$51.5M-5.7%
Free Cash Flow

$52.9M

Previous: $47.7M+11.0%
Net Income

$107M

Previous: $99.1M+8.3%
Operating Income

$320M

Previous: $259M+23.4%
Gross Profit

$402M

Previous: $369M+8.8%
Cash & Equivalents

$4.13B

Previous: $2.71B+52.6%
Total Assets

$43.7B

Previous: $34.9B+25.3%
Stock-Based Comp

$1.26M

Previous: $2M-37.1%

Revenue & EPS history

Wintrust · Revenue · Quarterly

$427M

Q3 2020+12.2%vs Q3 2019
Beat estimate in 9 of 16 quarters(56%)
ActualEstimate

Forward guidance

Wintrust expects to continue to grow loans in the fourth quarter of 2020 without compromising their credit standards. The company also believes that the fourth quarter of 2020 will provide another strong quarter for mortgage banking production.

Tailwinds

  • Opportunities for both internal and external growth remain consistently strong.
  • Successful participation in PPP lending enhanced growth opportunities.
  • Loan pipelines remain strong.
  • Expect to continue to grow loans in the fourth quarter of 2020 without compromising credit standards.
  • Believe the fourth quarter of 2020 will provide another strong quarter for mortgage banking production.

Headwinds

  • Carefully monitor the COVID-19 pandemic.
  • Evaluate the impact that COVID-19 could have on the economy.
  • Evaluate the impact that COVID-19 could have on customers.
  • Evaluate the impact that COVID-19 could have on the business.
  • Actively monitor and manage the credit portfolio.

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 Q3 2020

Historical avgQ3 2020

-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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