NASDAQ$WTFC

Wintrust Financial Corporation · Q3 2023 earnings

Q3 2023 earnings · · Investor relations

Briefing

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.

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.

Headline financials

Total Revenue

$575M

Previous: $503M+14.3%
EPS (adj)

$2.53

Previous: $2.21+14.5%
Net Interest Margin

3.6%

Previous: 3.3%+7.8%
Net Overhead Ratio

1.6%

Previous: 1.5%+3.9%
ROA

1.2%

Previous: 1.1%+7.1%
ROACE

13.3%

Previous: 12.3%+8.4%
Capital Expenditures

-$29.2M

Previous: -$37.5M+22.0%
Free Cash Flow

$135M

Previous: $105M+27.9%
Net Income

$164M

Previous: $143M+14.9%
Operating Income

$209M

Previous: $389M-46.4%
Gross Profit

$555M

Previous: $497M+11.8%
Cash & Equivalents

$2.87B

Previous: $4.46B-35.7%
Total Assets

$55.6B

Previous: $52.4B+6.1%
Stock-Based Comp

$8.13M

Previous: $8.96M-9.3%

Revenue & EPS history

Wintrust · Revenue · Quarterly

$575M

Q3 2023+14.3%vs Q3 2022
Beat estimate in 6 of 14 quarters(43%)
ActualEstimate

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.

Tailwinds

  • 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.

Headwinds

  • 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

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 2023

Historical avgQ3 2023

-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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