Wintrust Financial Corporation · NASDAQ:WTFC
Wintrust Financial — Q3 2024 Earnings Presentation
33 slides from Wintrust Financial's earnings presentation, Oct 22, 2024
Slide 1: Earnings Release Presentation Q3 2024
Wintrust Financial Corporation Earnings Release Presentation Q3 2024
Slide 2: 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 3: Forward Looking Statements
Forward Looking Statements • adverse effects of failures by our vendors to provide agreed upon services in the manner and at the cost agreed, particularly our information technology vendors; • increased costs as a result of protecting our customers from the impact of stolen debit card information; •
Slide 4: September 2024 Year-to-Date Highlights
September 2024 Year-to-Date Highlights (Comparative to September 2023 Year-to-Date) Net Income Pre-Tax, Pre-Provision1 Diluted EPS $509.7 million $778.1 million $7.67 +$11 million or 2% +$27 million or 4% -$0.04 or -1% Net Interest Income Net Interest Margin BV / TBV (GAAP) (non-GAAP) (GAAP) (non-GA
Slide 5: Q3 2024 Highlights (Comparative to Q2 2024)
Q3 2024 Highlights (Comparative to Q2 2024) Net Income Pre-Tax, Pre-Provision1 Diluted EPS $170.0 million $255.0 million $2.47 +$17.6 million +$3.6 million +$0.15 Return on Assets ROE / ROTCE Efficiency Ratio (GAAP) (non-GAAP) (GAAP) (non-GAAP) 1.11% 11.63% 13.92% 58.88% 58.58% +4 bps +2 bps +43 bps
Slide 6: Earnings Summary
Earnings Summary Differentiated, highly diversified and sustainable business model Record Net Income for the First Nine Months of the Year Quarterly Pre-Tax Income, Excluding Provision for Credit Losses ($ in Millions) ($ in Millions) $187.3 $170.0 $271.6 $164.2 $255.0 $152.4 $244.8 $251.4 $123.5 1.
Slide 7: Loan and Deposit Portfolio WTFC & Macatawa
Loan and Deposit Portfolio WTFC & Macatawa Macatawa Bank provides loan portfolio with pristine credit quality paired with attractive low cost deposits as of 8/1/2024 as of 9/30/2024 Loan Portfolio ($ in Billions) 4% 17% 1% 16% 7% Commercial 15% Commercial Real Estate $1.3 PFR - Property and Casualty
Slide 8: Loan Portfolio
Loan Portfolio Diversified loan portfolio Robust Loan Growth Enhanced by Macatawa Acquisition Q3 2024 Highlights ($ in Billions) • Net loan growth during the third quarter totaled $2.4 billion, or 21% $47.1 on an annualized basis $44.7 • Excluding loans acquired in the Macatawa transaction, total lo
Slide 9: Deposit Portfolio
Deposit Portfolio Enviable core deposit franchise in Chicago, Milwaukee and Grand Rapids market areas Deposit Growth Supported by Strong Core Franchise and Expansion into Grand Rapids Due to Macatawa Acqusition Q3 2024 Highlights ($ in Billions) $51.4 • Robust third quarter deposit growth totaling $
Slide 10: Deposit Market Share and WTFC Midwest Branch Locations
Deposit Market Share and WTFC Midwest Branch Locations Chicago MSA 2024 Deposit 2023 Deposit 2022 Deposit 2021 Deposit Grand Rapids MSA 2024 Deposit 2023 Deposit 2022 Deposit 2021 Deposit (Sorted by 2024 Market Share Data) Market Share Market Share Market Share Market Share (Sorted by 2024 Market Sh
Slide 11: Capital/Liquidity
Capital/Liquidity Current capital levels are well in excess of regulatory thresholds and benefited from Macatawa's excess capital and liquidity Sufficient CET1 Ratio For Company Risk Profile Boosted by Macatawa Capital Level Expansion Supported by Earnings and Macatawa Acqusition CET1 Ratio 12.0% 12
Slide 12: Tangible Book Value Per Share (non-GAAP)
Tangible Book Value Per Share (non-GAAP) Wintrust has grown TBV Per Share every year since going public in 1996, and increased TBV Per Share to $76.15 as of 9/30/2024, which is the highest in Company history $76.15 $70.33 $61.00 $59.64 $53.23 $49.70 $44.67 $41.68 $37.08 $32.45 $33.17 $29.28 $29.93 $
Slide 13: Total Shareholder Return
Total Shareholder Return Wintrust's commitment to growing shareholder value is exemplified by outperforming the KBW's Regional Banking Total Return Index (KRXTR) for each of the 1-year, 3-year, 5-year, and 10-year time periods Total Shareholder Return of WTFC Compared to KRXTR (1 Year) Total Shareho
Slide 14: Net Interest Margin/Income
Net Interest Margin/Income Net interest margin within guidance range; coupled with earning asset growth produced strong net interest income Q3 2024 NII Boosted By Macatawa and Stable NIM Q3 2024 Highlights ($ in Millions) $502.6 • Well-positioned for strong financial performance as we $462.4 $470.0
Slide 15: Non-Interest Income & Non-Interest Expense
Non-Interest Income & Non-Interest Expense Continue to manage our expenses and believe Macatawa acquisition will provide valuable synergies Macatawa Acquisition Enhances Existing Diversified Fee Businesses ($ in Millions) $7.6 $1.4 $121.1 $2.9 $113.1 $(13.2) $(5.3) $(1.4) Q2 2024 Non- Macatawa Non-
Slide 16: Non-Interest Income
Non-Interest Income Diversified fee businesses support non-interest income levels despite challenging mortgage environment Non-Interest Income Decreased Primarily Due to MSR Activity Continued Strong Wealth Management Business ($ in Millions) ($ in Millions) $37.2 $140.6 $34.8 $35.4 $33.5 $33.3 $121
Slide 17: Non-Interest Expense
Non-Interest Expense Continue to manage our expenses and believe they are in line with Company growth Increase Primarily Driven by the Addition of Macatawa Employees and Efficiency Ratio Increased Slightly on Lower MSR Related Incentive Compensation Revenues ($ in Millions) Total Salaries and Benefi
Slide 18: Credit Quality
Credit Quality Diversified Business Lines and Strong Credit Management Support Stable Credit Quality Special Mention and Substandard Percentages Remained Stable Manageable Levels of Non-Performing Loans Quarter over Quarter ($ in Millions) ($ in Millions) 0.39% 0.38% 0.34% $43,350 $45,715 0.32% 0.33
Slide 19: Non-Performing Assets to Total Assets
Non-Performing Assets to Total Assets NPAs continue to normalize though still remain historically low 1.74% 1.58% 1.52% 1.30% 1.03% 0.85% 0.81% 0.62% 0.56% 0.51% 0.50% 0.45% 0.46% 0.48% 0.47% 0.44% 0.40% 0.41% 0.39% 0.34% 0.34% 0.36% 0.32% 0.30% 0.29% 0.27% 0.21% 0.16% 99 03 07 11 15 19 23 4 00 04 0
Slide 20: Credit Quality - Allowance for Loan Losses
Credit Quality - Allowance for Loan Losses The Company remains well-reserved Ample Allowance Coverage on Total Loan Portfolio Consistently Well-Reserved Across Our Core Loan Portfolio ($ in Billions) ($ in Billions) $47.1 $28.4 $44.7 $43.2 $26.3 $25.4 0.99% 0.98% 0.93% 1.51% 1.52% 1.40% 3/31/2024 6/
Slide 21: Credit Quality - Commercial Loans
Credit Quality - Commercial Loans Diversified portfolio with low net charge-offs Strong Loan Growth With the Majority of Charge-offs Related to One Relationship Previously Reserved for in Prior Quarters Manageable Levels of Non-Performing Commercial Loans ($ in Millions) ($ in Millions) $15,248 $63.
Slide 22: Credit Quality - Commercial Real Estate Loans
Credit Quality - Commercial Real Estate Loans Well-diversified portfolio with a majority of its exposure in stabilized, income producing properties Proactive Credit Management NPLs and Credit Quality Remains Relatively Stable ($ in Millions) ($ in Millions) $12,793 $48.3 $11,633 $11,947 $10,946 $11,
Slide 23: CRE Office Portfolio (as of 9/30/2024)
CRE Office Portfolio (as of 9/30/2024) CRE office represents a minimal percentage of the total loan portfolio As of As of CRE Office Portfolio Geography Portfolio Characteristics 6/30/2024 9/30/2024 ($ in Millions) Chicago CBD, 1 Other CBD, 12% 2 11% Balance ($ in Millions) $1,585 $1,675 $179.6 $197
Slide 24: Credit Quality Premium Finance Receivables - Life Insurance
Credit Quality Premium Finance Receivables - Life Insurance Life Insurance portfolio remains steady and has continued to demonstrate exceptional credit quality Q3 2024 Balances Remained Consistent with Strong Credit Quality Continued Low Levels of Non-Performing Loans ($ in Millions) ($ in Millions)
Slide 25: Premium Finance Receivables - Property and Casualty Insurance
Premium Finance Receivables - Property and Casualty Insurance Consistent Loan Growth Steady Levels of Non-Performing Loans ($ in Millions) ($ in Millions) $58.5 $55.1 $54.3 $6,904 $6,940 $7,101 $7,132 $47.7 $6,723 $43.0 0.32% 0.33% 0.84% 0.78% 0.69% 0.76% 0.29% 0.29% 0.64% 0.24% 9/30/2023 12/31/2023
Slide 26: Appendix
Appendix WINTRUST 2
Slide 27: Macatawa Bank - Purchase Accounting
Macatawa Bank - Purchase Accounting Wintrust's proven acquisition expertise will support efficient integration of Macatawa Estimated 4Q 24 ($ in Millions) 3Q 24 Impact Impact Commentary Items accreting through interest income: Accreted into interest and fees on loans using methods that approximate t
Slide 28: Hedging Strategy Update
Hedging Strategy Update Use of Hedges to Mitigate Negative Impacts of Falling Rates Hedging activities had a 17 basis point unfavorable impact to our Q3 2024 NIM as compared to a 18 basis point unfavorable impact to our Q2 2024 NIM. These derivatives are expected to benefit the Company as one-month
Slide 29: Loan Portfolio
Loan Portfolio Highly diversified portfolio across U.S Loan Portfolio - Geographic Diversification1 (as of 9/30/2024) Canada: 2% 4% 5% 4% 2% 3% 2% 2% 34% 8% 2% Primary Geographic Total Loan Portfolio Region Commercial: 2% Commercial, industrial and other Illinois/Wisconsin Leasing Nationwide 6% Fran
Slide 30: Glossary
Glossary Abbreviation Definition BOLI Bank Owned Life Insurance BP Basis Point BV Book Value per Common Share CBD Central Business District CET1 Ratio Common Equity Tier 1 Capital Ratio CRE Commercial Real Estate Diluted EPS Net Income per Common Share - Diluted FDIC Federal Deposit Insurance Corpor
Slide 31: Non-GAAP Reconciliation
Non-GAAP Reconciliation Three Months Ended Nine Months Ended Reconciliation of non-GAAP Net Interest Margin and September 30, June 30, March 31, December 31, September 30, September 30, September 30, Efficiency Ratio ($ in Thousands): 2024 2024 2024 2023 2023 2024 2023 (A) Interest Income (GAAP) $90
Slide 32: Non-GAAP Reconciliation
Non-GAAP Reconciliation Three Months Ended Nine Months Ended September September September September 30, June 30, March 31, December 31, 30, 30, 30, Reconciliation of non-GAAP Return on Average Tangible 2024 2024 2024 2023 2023 2024 2023 Common Equity ($ in Thousands): (N) Net income applicable to c
Slide 33: Non-GAAP Reconciliation
Non-GAAP Reconciliation Three Months Ended September 30, June 30, March 31, December 31, September 30, Reconciliation of non-GAAP Tangible Common Equity 2024 2024 2024 2023 2023 ($'s and Shares in Thousands): Total shareholders’ equity (GAAP) $6,399,714 $5,536,628 $5,436,400 $5,399,526 $5,015,613 Le