Wintrust Financial Corporation · NASDAQ:WTFC
Wintrust Financial — Q3 2020 Earnings Presentation
20 slides from Wintrust Financial's earnings presentation, Oct 22, 2020
Slide 1: Earnings Release Presentation Q3 2020
Wintrust Financial Corporation Earnings Release Presentation Q3 2020
Slide 2: Q3 2020 Highlights
Q3 2020 Highlights Performance Highlights vs. Q2 2020 Third Quarter 2020 Highlights as compared to Second Quarter 2020 (Q3 2020) • Loan growth of $733 million or 9%, on an annualized basis, in the third quarter of 2020 as compared to the second quarter of 2020. $107.3 million +$85.7 million • Provis
Slide 3: Earnings Summary
Earnings Summary Condensed Income Statement Current Q Difference vs. Current Q Net Income & ROA ($ in Millions) Thousands ($) Q3 2020 Q2 2020 Q3 2019 $107.3 $99.1 Net Interest Income $255,936 $(7,195) $(8,916) $86.0 Non-Interest Income $170,593 $8,600 $55,456 1.16% $62.8 0.99% Net Revenue $426,529 $
Slide 4: Loan Portfolio
Loan Portfolio Key Observations Total Loans ($ in Billions) • Total loans increased $733 million or 9% on an annualized basis from the Year-over-Year Change prior quarter end and $6.4 billion or 25% as compared to the end of Q3 2019. $6.4B or 25% $31.4 $32.1 • Q3 2020 loan growth was driven by Comme
Slide 5: Deposit Portfolio
Deposit Portfolio Key Observations Total Deposits ($ in Billions) • Total deposits increased by $193 million from the prior quarter end. The Year-over-Year Change increase in deposits includes a $272 million increase in MaxSafe money $7.1B or 25% market deposits and a $205 million increase in non-in
Slide 6: Net Interest Margin
Net Interest Margin Net Interest Margin (Quarterly Trends) Net Interest Margin, Fully Taxable-Equivalent (Non-GAAP1) 4.53% 4.25% 2.74% 4.13% 0.19% 3.44% 3.39% (0.14)% 3.19% 3.14% 3.12% (0.04)% 2.57% 3.37% 3.17% 3.12% 2.74% 2.57% 2.73% 2.56% (0.18)% 1.56% 1.45% 0 ns P) te und s 0 1.34% Q2 202 P Loa c
Slide 7: Liquidity
Liquidity Total Average Interest-Bearing Deposits with Banks and Cash Equivalents as a Percentage of Total Average Earning Assets ($ in Billions) $38.7 $39.8 $32.7 $33.7 $31.2 8.4% 8.6% 6.3% 6.7% 4.2% $2.0 $2.2 $3.2 $3.4 $1.4 9/30/2019 12/31/2019 3/31/2020 6/30/2020 9/30/2020 Total Average Earning A
Slide 8: Credit Quality
Credit Quality Non-Performing Loans ("NPLs") ($ in Millions) Total Provision for Credit Losses and Net Charge-Offs ("NCOs") ($ in Millions) $179.4 $188.3 $173.1 $135.1 0.20% 0.19% $114.3 $117.6 0.65% 0.60% 0.15% 0.54% $53.0 0.12% 0.44% 0.44% $25.0 $12.7$7.8 0.08% $15.4 $9.4$10.8 $5.3 $9.3 9/30/2019
Slide 9: Credit Quality - CECL
Credit Quality - CECL Allowance for Credit Losses ($ in Thousands) - 9/30/2020 vs. 6/30/2020 Macroeconomic Scenario Key Model Inputs Qualitative Considerations • Baa Corporate credit spread generally narrows in • Economic Inputs • Improving macroeconomic indicators and the 8-Quarter R&S time period.
Slide 10: Credit Quality - COVID-19 Related Modified Loans
Credit Quality - COVID-19 Related Modified Loans COVID-19 Related Modified Loans as of 9/30/2020 Chart data below as of 9/30/2020 All Other: 10.7% COVID-19 Related Loan Loan Modified Loan Types Balance Balance Difference Line Increases: 7.0% ($ shown in Millions) as of 6/30/20 as of 9/30/20 Interest
Slide 11: Commercial and Commercial Real Estate Portfolio
Commercial and Commercial Real Estate Portfolio Loan Portfolio Mix, Growth, and COVID-19 Related Modified Loans as of 9/30/2020 and 6/30/2020 (Commercial and Commercial Real Estate Portfolio) COVID-19 Related COVID-19 As of As of Increase/ Modified Loans as Related Modified Loans as of a % of Total
Slide 12: Credit Quality - COVID-19 - Select High Impact Industries
Credit Quality - COVID-19 - Select High Impact Industries Select High Impact Industries June 30, 2020 September 30, 2020 As of 6/30/2020 As of 9/30/2020 Loan Balance Loan Balance COVID-19 COVID-19 Total Total % with % with Loan % of Total Commitment Loan % of Total Commitment Related Related Industr
Slide 13: Non-Interest Income
Non-Interest Income Non-Interest Income ($ in Millions) Operating Lease Income, Net ($ in Millions) $162.0 $170.6 $12.5 $14.9 $13.9 $12.0 $12.0 $11.8 $11.7 $11.5 $10.4 $11.7 $115.1 $112.2 $113.2 $11.8 $18.2 $15.8 $15.7 $237.0 $10.0 $12.0 $11.0 $11.3 $12.0 $228.6 $231.2 $230.4 $12.5 $102.3 $108.5 $50
Slide 14: Mortgage Banking
Mortgage Banking Production Revenue ($ in Millions) MSR1 Value and Loans Serviced for Others ($ in Millions) $93.4 $94.1 $10,140 $9,188 $8,243 $8,315 $7,901 $85.6 $86.9 $49.3 $40.9 4.23% 4.23% 4.06% $34.6 $75.6 $77.2 $73.5 2.88% Q3 2019 Q4 2019 Q1 2020 Q2 2020 Q3 2020 2.78% MSRs, at fair value Loans
Slide 15: Non-Interest Expense
Non-Interest Expense Trending Non-Interest Expense ($ in Millions) Expense Management Ratios $259.4 $264.2 1.53% $249.6 $234.6 $234.6 Salaries and 1.40% $37.4 $37.6 Employee Benefits 66.56% 1.33% $34.5 $28.5 $30.2 $5.7 $6.5 $7.6 $10.4 $7.7 $7.7 $9.4 Equipment $6.5 $8.4 $9.3 $7.9 $8.0 $9.8 $6.7 $7.7
Slide 16: Capital
Capital Q3 2020 Key Observations Capital Adequacy • Tangible book value per common share Q3 2019 Q4 2019 Q1 2020 Q2 2020 Q3 2020 increased $1.47 from the prior quarter-end 1 and increased $2.54 or 5.2% from Q3 2019. Common equity tier 1 capital ratio 9.3% 9.2% 8.9% 8.8% 8.9% Tier 1 capital ratio1 9.
Slide 17: Non-GAAP Reconciliation
Non-GAAP Reconciliation Three Months Ended Nine Months Ended Reconciliation of Non-GAAP Net Interest Margin September 30, June 30, March 31, December 31, September 30, September 30, September 30, and Efficiency Ratio ($ in Thousands): 2020 2020 2020 2019 2019 2020 2019 (A) Interest Income (GAAP) $ 3
Slide 18: Non-GAAP Reconciliation
Non-GAAP Reconciliation Three Months Ended Nine Months Ended Reconciliation of Non-GAAP Tangible Common Equity ($'s September 30, June 30, March 31, December 31, September 30, September 30, September 30, and Shares in Thousands): 2020 2020 2020 2019 2019 2020 2019 Total shareholders’ equity (GAAP) $
Slide 19: 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 20: Forward-Looking Statements
Forward-Looking Statements • ability of the Company to use technology to provide products and services that will satisfy customer demands and create efficiencies in operations and to manage risks associated therewith; • failure or breaches of our security systems or infrastructure, or those of third