NASDAQ$WTFC

Wintrust Financial Corporation · Q4 2022 earnings

Q4 2022 earnings · · Investor relations

Briefing

Wintrust announced fourth quarter results, highlighted by strong net income and record quarterly pre-tax, pre-provision income.

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.

Headline financials

Total Revenue

$551M

Previous: $430M+28.1%
EPS (adj)

$2.23

Previous: $1.58+41.1%
Net Interest Margin

3.7%

Previous: 2.5%+46.1%
Net Overhead Ratio

1.6%

Previous: 1.2%+34.7%
ROA

1.1%

Previous: 0.8%+37.5%
ROACE

12.7%

Previous: 9.1%+40.6%
Capital Expenditures

$16M

Previous: $33.6M-52.5%
Free Cash Flow

$304M

Previous: $366M-17.0%
Net Income

$145M

Previous: $98.8M+46.6%
Operating Income

$195M

Previous: $137M+42.4%
Gross Profit

$550M

Previous: $429M+28.4%
Cash & Equivalents

$491M

Previous: $411M+19.4%
Total Assets

$52.9B

Previous: $50.1B+5.6%
Stock-Based Comp

$7.9M

Previous: $6.74M+17.2%

Revenue & EPS history

Wintrust · Revenue · Quarterly

$551M

Q4 2022+28.1%vs Q4 2021
Beat estimate in 6 of 14 quarters(43%)
ActualEstimate

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.

Tailwinds

  • 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.

Headwinds

  • 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.

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 Q4 2022

Historical avgQ4 2022

-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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