Wintrust Financial Corp (WTFC) Reports Record Year-to-Date Net Income
Wintrust Financial Corp (NASDAQ:WTFC) reports record net income of $499.1 million for the first nine months of 2023, a 33% increase in diluted earnings per common share compared to the same period in 2022.
Q3 2023 net income stands at $164.2 million, a 14% increase compared to Q3 2022.
Total deposits grew by approximately $1 billion, or 9% annualized, in Q3 2023.
Net interest margin decreased slightly due to the impact of hedging activities.
Wintrust Financial Corp (NASDAQ:WTFC) announced on October 17, 2023, a record net income of $499.1 million for the first nine months of 2023. This represents a significant increase from the net income of $364.9 million reported for the same period in 2022. The company's Q3 2023 net income was $164.2 million, marking a 14% increase compared to Q3 2022.
Financial Performance and Achievements
Wintrust Financial Corp (NASDAQ:WTFC) demonstrated strong financial performance in Q3 2023. Total deposits grew by approximately $1 billion, or 9% annualized. Total loans increased by approximately $423 million, or 4% annualized. After adjusting for the impact of a loan sale transaction, total loans would have increased $767 million, or 7% annualized.
The company reported record quarterly net interest income of $462.4 million, primarily due to strong growth in earning assets. However, the net interest margin decreased slightly, primarily due to the impact of hedging activities. Despite this, the company expects to maintain its net interest margin within a narrow range for the remainder of 2023 and into 2024.
Balance Sheet Summary
Total assets increased by $1.3 billion in Q3 2023 compared to Q2 2023. Total loans increased by $422.6 million, primarily due to draws on existing commercial real estate loan facilities and growth in the commercial portfolio. Total liabilities increased by $1.3 billion in Q3 2023, mainly due to a $1.0 billion increase in total deposits.
Asset Quality and Credit Losses
The allowance for credit losses totaled $399.5 million as of September 30, 2023, an increase of $11.7 million compared to June 30, 2023. A provision for credit losses totaling $19.9 million was recorded for Q3 2023 compared to $28.5 million recorded in Q2 2023. Net charge-offs totaled $8.1 million in Q3 2023, compared to $17.0 million in Q2 2023.
Wintrust Financial Corp (NASDAQ:WTFC) remains confident in its financial performance and growth prospects. The company's strong Q3 2023 results are expected to continue driving momentum into Q4 2023 and beyond.
This article first appeared on GuruFocus.
