Wintrust Financial Corporation · NASDAQ:WTFC
Wintrust Financial — Q1 2020 Earnings Presentation
16 slides from Wintrust Financial's earnings presentation, Apr 22, 2020
Slide 1: Wintrust Financial Corporation Earnings Release Presentation Q1 2020
Wintrust Financial Corporation Earnings Release Presentation Q1 2020
Slide 2: Q1 2020 Highlights
Q1 2020 Highlights Performance Highlights vs. Q4 2019 Key Observations (Q1 2020) • Net interest income decreased by $436,000 compared to the fourth quarter of 2019 as the impact of a 5 basis point decline in net interest margin and one less $62.8 million -$23.2 million day was partially offset by a
Slide 3: Earnings Summary
Earnings Summary Condensed Income Statement Current Q Difference vs. Current Q Net Income & ROA ($ in Millions) Thousands ($) Q1 2020 Q4 2019 Q1 2019 $99.1 Net Interest Income $261,443 $(436) $(543) $89.1 $81.5 $86.0 Key Observations Non-Interest Income $113,242 $1,022 $31,585 1.16% 1.16% $62.8 • Pr
Slide 4: Loan Portfolio
Loan Portfolio Key Observations Total Loans ($ in Billions) • Total loans increased $1.0 billion from the prior quarter-end and $3.6 billion Year-over-Year Change $3.6B or 15% as compared to the end of Q1 2019. $27.8 $26.8 • Q1 2020 loan growth was strongest in Commercial and Commercial Real- $25.3
Slide 5: Commercial and Commercial Real Estate Portfolio
Commercial and Commercial Real Estate Portfolio Loan Portfolio Mix, Growth, and % Unfunded as of 3/31/20 and 12/31/19 (Commercial and Commercial Real Estate Portfolio) As of As of Increase/ % Unfunded as % Unfunded as (Dollars in thousands) 3/31/2020 12/31/2019 (Decrease) of 3/31/20 of 12/31/19 Comm
Slide 6: Deposit Portfolio
Deposit Portfolio Key Observations Total Deposits ($ in Billions) • Total deposits increased by $1.4 billion from the prior quarter- Year-over-Year Change $4.7B or 17% end. The Company successfully grew deposits in the first quarter $31.5 through organic retail channels, including $282.7 million of
Slide 7: Net Interest Margin
Net Interest Margin 4.74% 4.74% 4.53% 4.25% 4.13% Net Interest Margin (Quarterly Trends) Net Interest Margin, Fully Taxable-Equivalent (Non-GAAP1) 3.72% 3.64% 4.74% 4.74% 3.39% 4.53% 3.19% 0.11% 3.14% 4.25% 4.13% 3.19% 3.72% 3.64% (0.04)% 3.14% 3.39% 3.70% 3.62% 3.19% 3.14% (0.12)% 3.37% 3.17% 3.12%
Slide 8: Credit Quality
Credit Quality Non-Performing Loans (excl. PCD1) ("NPLs") ($ in Millions) Net Charge-Offs ("NCOs") ($ in Millions) 0.36% $143.9 $22.3 0.19% $117.6 $113.4 $114.3 $117.6 0.53% 0.15% 0.49% 0.09% $12.7 0.08% $9.4 0.45% 0.44% 0.44% $5.1 $5.3 3/31/2019 6/30/2019 9/30/2019 12/31/2019 3/31/2020 Q1 2019 Q2 2
Slide 9: Credit Quality - CECL
Credit Quality - CECL Allowance for Credit Losses ($ in Thousands) - 3/31/2020 vs. 12/31/2019 Macro Economic Scenario Key Model Inputs Qualitative Considerations • Baa Corporate credit spread widens to a peak in • Economic Inputs • Downside risk due to recession Q3 2020 and then narrows over the rem
Slide 10: Credit Quality - COVID-19 Select High Impact Industries
Credit Quality - COVID-19 Select High Impact Industries Industry Loan % of Total Total Loan Mix as of 3/31/2020: Select High Impact Industries vs All Balance Total Commitment Other $ shown in Millions Loans Balance Arts Entertainment & $207 0.7% $239 Recreation Dentists, Doctors, & $452 1.6% $537 Ho
Slide 11: Non-Interest Income
Non-Interest Income Non-Interest Income ($ in Millions) Operating Lease Income, Net ($ in Millions) $115.1 $112.2 $113.2 $12.5 $12.0 $12.0 $98.2 $18.2 $15.8 $15.7 $11.7 $81.7 $15.7 $10.0 $11.0 $11.3 $10.8 $9.3 $12.0 $12.5 $12.0 $230.1 $231.2 $19.9 $11.7 $228.6 $8.8 $224.2 $50.9 $47.9 $48.3 $10.8 $37
Slide 12: Mortgage Banking
Mortgage Banking Production Revenue ($ in Millions) MSR1 Value and Loans Serviced for Others ($ in Millions) $48.3 $50.9 $0.1 $47.9 $9.4 $8,243 $8,315 MSR - Payoffs/ $7,901 LOGIC IN $14.0 Paydowns $39.9 $7,515 $37.4 $14.5 $35.6 $7,014 $8.2 $24.3 MSR - Change in $32.0 $0.9 Fair Value Model $29.9 $85.
Slide 13: Non-Interest Expense
Non-Interest Expense Trending Non-Interest Expense ($ in Millions) Expense Management Ratios $249.6 $229.6 $234.6 $234.6 1.72% $34.5 Salaries and $214.4 $28.5 $30.2 Employee Benefits 1.64% $33.2 $7.6 $6.5 $7.7 $8.4 $29.4 $6.2 $8.0 $9.8 $6.7 Equipment 1.53% $7.5 $6.2 $8.9 $12.5 $9.3 $5.6 $8.8 $13.4 $
Slide 14: Non-GAAP Reconciliation
Non-GAAP Reconciliation Three Months Ended Reconciliation of Non-GAAP Net Interest March 31, December 31, September 30, June 30, March 31, Margin and Efficiency Ratio ($ in Thousands): 2020 2019 2019 2019 2019 (A) Interest Income (GAAP) $ 344,067 $ 349,731 $ 354,627 $ 346,814 $ 333,970 Taxable-equiv
Slide 15: Forward-Looking Statements
Forward-Looking Statements This document contains forward-looking statements within the meaning of federal securities laws. Forward-looking information can be identified through the use of words such as “intend,” “plan,” “project,” “expect,” “anticipate,” “believe,” “estimate,” “contemplate,” “possi
Slide 16: Forward-Looking Statements
Forward-Looking Statements • failure or breaches of our security systems or infrastructure, or those of third parties; • security breaches, including denial of service attacks, hacking, social engineering attacks, malware intrusion or data corruption attempts and identity theft; • adverse effects on