Wintrust Financial Corporation · NASDAQ:WTFC
Wintrust Financial — Q4 2022 Earnings Presentation
24 slides from Wintrust Financial's earnings presentation, Jan 19, 2023
Slide 1: Earnings Release Presentation Q4 2022
Wintrust Financial Corporation Earnings Release Presentation Q4 2022
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 • security breaches, including denial of service attacks, hacking, social engineering attacks, malware intrusion or data corruption attempts and identity theft; • adverse effects on our information technology systems resulting from failures, human error or cyberattacks (in
Slide 4: Q4 2022 Summary
Q4 2022 Summary "Wintrust finished the year with great momentum as our fourth quarter results were highlighted by strong net income and record quarterly pre-tax, pre-provision income. Net interest income and net interest margin expanded meaningfully and our loan portfolio continued to grow while exh
Slide 5: Q4 2022 Highlights
Q4 2022 Highlights (Comparative to Q3 2022) Robust loan growth coupled with higher earning asset yields drive net income expansion Net Income Pre-Tax, Pre-Provision1 Diluted EPS $144.8 million $242.8 million $2.23 +$1.9 million +$36.4 million +$0.02 Return on Assets Return on Equity Efficiency Ratio
Slide 6: Full Year 2022 Highlights
Full Year 2022 Highlights (Comparative to FY 2021) Wintrust reported exceptional financial results in 2022 and is well-positioned to reach higher levels in 2023 Net Income Pre-Tax, Pre-Provision1 Diluted EPS $509.7 million $779.1 million $8.02 +$44 million or 9% +$201 million or 35% +$0.44 or 6% Net
Slide 7: Earnings Summary
Earnings Summary Differentiated, highly diversified and sustainable business model Strong Net Income Highlights Asset Sensitive Position and Robust Loan Record Quarterly PTPP Expected to Continue Higher as Net Interest Growth Margin Expands ($ in Millions) ($ in Millions) $243.5 $143.0 $144.8 $208.9
Slide 8: Loan Portfolio
Loan Portfolio Balanced loan portfolio of approximately 1/3 Commercial, 1/3 Commercial Real Estate and 1/3 Specialty Finance Continued Strong Loan Growth Alongside Increasing Loan Yields Balanced Loan Mix (as of 12/31/2022) ($ in Billions) ($ in Billions) Year-over-Year Change Residential Real All O
Slide 9: Deposit Portfolio
Deposit Portfolio Enviable core deposit franchise in Chicago and Milwaukee market areas Increased Funding Costs Considerably Outpaced by Higher Loan Yields Diversified Deposit Mix (as of 12/31/2022) ($ in Billions) ($ in Billions) Year-over-Year Change $0.8B or 2% Savings $4.6 $42.6 $42.8 $42.9 Mone
Slide 10: Liquidity
Liquidity Deployed liquidity to finance earning asset growth coupled with strategic management of investment portfolio Liquidity Utilized to Fund Loan Growth Expanded Investment Portfolio1 in Fourth Quarter Given Available Market Returns ($ in Billions) ($ in Billions) $6.1 $6.1 $7.9 $7.3 13.3% $6.7
Slide 11: Capital
Capital Adequate and appropriate capital levels given the Company's risk profile Capital Levels Remaining Constant Continued TBV Improvement $71.62 $72.12 11.9% 11.8% 11.9% 11.6% 11.6% $65.24 $61.68 $61.00 $59.64 9.9% 9.9% 10.0% $55.71 9.6% 9.6% $53.23 $49.70 9.0% 9.0% 9.1% 8.6% 8.6% $44.67 8.8% 8.8
Slide 12: Net Interest Income/Margin
Net Interest Income/Margin Net interest margin benefiting from higher earning asset yields and prudent deployment of liquidity to fund loan growth Net Interest Margin and Loan Growth Drive Significant Net Interest Increased Earning Asset Yield Outpaces Funding Costs Income Expansion ($ in Millions)
Slide 13: Non-Interest Income
Non-Interest Income Diversified fee business supports non-interest income levels despite challenging mortgage environment Fee Businesses Contribution Lower in Rising Rate Environment Wealth Management Business Remains Healthy Despite Market Volatility ($ in Millions) ($ in Millions) $162.8 $32.5 $33
Slide 14: Non-Interest Expense
Non-Interest Expense Conservative and consistent operating philosophy Increase Primarily Driven by Higher Incentive Compensation Related to Continued Steady Improvement of Efficiency Ratio Strong 2022 Performance and Increased Employee Insurance Costs ($ in Millions) 65.64% 64.21% $6.3 $307.8 $4.2 $
Slide 15: Loan Portfolio
Loan Portfolio Highly diversified portfolio across U.S. Loan Portfolio - Geographic Diversification1 as of 12/31/2022 Total Loan Portfolio Primary Geographic Region Commercial: 1% Canada Market: 2% Commercial, industrial and other Illinois/Wisconsin Leasing Nationwide 1% Franchise Lending Multi-Stat
Slide 16: Credit Quality
Credit Quality Exceptional credit quality driven by a diversified loan portfolio Continued Relatively Stable Levels of Non-Performing Loans Extended Low Levels of Net Charge-Offs ($ in Millions) ($ in Millions) $97.6 $100.7 0.11% $47.6 $74.4 $72.4 0.07% $57.3 0.05% 0.03% $20.4 0.03% 0.26% 0.26% $6.2
Slide 17: Credit Quality - Commercial Loans
Credit Quality - Commercial Loans1 Low net charge-off levels with growth upside as line utilization remains below pre-pandemic levels Continued Portfolio Growth Paired with a Low Net Non-Performing Loans Stabilized and Remain Low Charge-Off Ratio ($ in Millions) ($ in Millions) $11,965 $12,216 $12,5
Slide 18: Credit Quality - Commercial Real Estate Loans
Credit Quality - Commercial Real Estate Loans Well-diversified portfolio with a majority of its exposure in stabilized, income producing properties Continued Strong Growth with Low Charge-Offs NPLs Continue to Decline ($ in Millions) ($ in Millions) $9,578 $9,951 $8,990 $9,235 $9,407 $21.7 $12.3 $10
Slide 19: Credit Quality - Premium Finance Receivables Commercial
Credit Quality - Premium Finance Receivables Commercial Net charge-off levels remain low while outstanding balances grow Significant Loan Growth NPLs Remain Below Historic Norms ($ in Millions) ($ in Millions) $5,714 $5,850 $5,541 $29.7 $29.3 $4,855 $4,938 0.30% $19.1 $19.8 $12.6 0.14% 0.16% 0.52% 0
Slide 20: Credit Quality - Premium Finance Receivables Life
Credit Quality - Premium Finance Receivables Life Life Insurance portfolio remains extremely robust and has continued to demonstrate exceptional credit quality Reliably Strong Growth With Pristine Credit Quality Immaterial Amount of Non-Performing Loans ($ in Millions) ($ in Millions) No material ch
Slide 21: Appendix
Appendix 21
Slide 22: Glossary
Glossary Abbreviation Definition AFS Available For Sale BP Basis Point BV Book Value per Common Share CECL Current Expected Credit Losses CET1 Ratio Common Equity Tier 1 Capital Ratio CRE Commercial Real Estate DDA Demand Deposit Account Diluted EPS Net Income per Common Share - Diluted FY Full Year
Slide 23: Non-GAAP Reconciliation
Non-GAAP Reconciliation Three Months Ended Years Ended Reconciliation of non-GAAP Net Interest Margin and December 31, September 30, June 30, March 31, December 31, December 31, December 31, Efficiency Ratio ($ in Thousands): 2022 2022 2022 2022 2021 2022 2021 (A) Interest Income (GAAP) $ 580,745 $
Slide 24: Non-GAAP Reconciliation
Non-GAAP Reconciliation Three Months Ended Reconciliation of non-GAAP Tangible Common Equity December 31, September 30, June 30, March 31, December 31, ($'s and Shares in Thousands): 2022 2022 2022 2022 2021 Total shareholders’ equity (GAAP) $ 4,796,838 $ 4,637,980 $ 4,727,623 $ 4,492,256 $ 4,498,68