Wintrust Financial Corporation · NASDAQ:WTFC
Wintrust Financial — Q2 2020 Earnings Presentation
20 slides from Wintrust Financial's earnings presentation, Jul 22, 2020
Slide 1: Wintrust Financial Corporation Earnings Release Presentation Q2 2020
Wintrust Financial Corporation Earnings Release Presentation Q2 2020
Slide 2: Q2 2020 Highlights
Q2 2020 Highlights Performance Highlights vs. Q1 2020 Second Quarter 2020 Highlights as compared to First Quarter 2020 (Q2 2020) • Net interest income increased by $1.7 million compared to the first quarter of 2020 as the impact of a $5.1 billion increase in average earning assets was partially offs
Slide 3: Earnings Summary
Earnings Summary Condensed Income Statement Current Q Difference vs. Current Q Net Income & ROA ($ in Millions) Thousands ($) Q2 2020 Q1 2020 Q2 2019 $99.1 Net Interest Income $263,131 $1,688 $(3,071) $81.5 $86.0 Key Observations Non-Interest Income $161,993 $48,751 $63,835 1.16% $62.8 1.02% • Pre-P
Slide 4: Loan Portfolio
Loan Portfolio Key Observations Total Loans ($ in Billions) • Total loans increased $3.6 billion from the prior quarter end and $6.1 billion as Year-over-Year Change $6.1B or 24% compared to the end of Q2 2019. $31.4 ◦ Lines of credit utilization declined to approximately 49% at June 30, $27.8 2020
Slide 5: Deposit Portfolio
Deposit Portfolio Key Observations Total Deposits ($ in Billions) • Total deposits increased by $4.2 billion from the prior quarter end. The Year-over-Year Change increase in deposits included $2.6 billion of non-interest bearing deposit $8.1B or 30% $35.7 growth primarily related to PPP funding. In
Slide 6: Net Interest Margin
Net Interest Margin Net Interest Margin (Quarterly Trends) Net Interest Margin, Fully Taxable-Equivalent (Non-GAAP1) 4.74% 4.53% 3.14% 4.25% 4.13% 0.36% 3.64% 3.39% 3.44% 3.62% (0.07)% 2.74% 3.19% 3.14% 3.37% 3.17% 3.12% 2.74% (0.69)% 2.73% 1.56% 1.51% 0 ld te s 0 1.45% 202 ie Ra nd 202 1 t Y ty Fu
Slide 7: Credit Quality
Credit Quality Non-Performing Loans ("NPLs") ($ in Millions) Net Charge-Offs ("NCOs") ($ in Millions) $22.3 $179.4 $188.3 $15.4 0.36% $12.7 $113.4 $114.3 $117.6 0.65% 0.60% $9.4 0.19% 0.20% 0.15% $5.3 0.08% 0.45% 0.44% 0.44% Q2 2019 Q3 2019 Q4 2019 Q1 2020 Q2 2020 6/30/2019 9/30/2019 12/31/2019 3/31
Slide 8: Credit Quality - CECL
Credit Quality - CECL Allowance for Credit Losses ($ in Thousands) - 6/30/2020 vs. 3/31/2020 Macro Economic Scenario Key Model Inputs Qualitative Considerations • Baa Corporate credit spread widens to a peak in • Economic Inputs • Current recessionary environment and expected Q2 2020 and then narrow
Slide 9: Credit Quality - COVID-19 - Select High Impact Industries
Total loans of $31.4 billion Credit Quality - COVID-19 - Select High Impact Industries Select High Impact Industries March 31, 2020 June 30, 2020 As of 6/30/2020 COVID-19 Loan Balance PPP Loan Loan % of Total Loan % of Total Related % with PPP Loan Balance as a Industry Total Commitment Total Commit
Slide 10: Commercial and Commercial Real Estate Portfolio
Commercial and Commercial Real Estate Portfolio Loan Portfolio Mix, Growth, and COVID-19 Related Modified Loans as of 6/30/2020 and 3/31/2020 (Commercial and Commercial Real Estate Portfolio) COVID-19 Related COVID-19 As of As of Increase/ Related Modified Modified Loans as a % of Total 6/30/2020 3/
Slide 11: Credit Quality - COVID-19 Related Modified Loans
Credit Quality - COVID-19 Related Modified Loans COVID-19 Related Modified Loans as of 6/30/2020 COVID-19 Related Modified Loan Types Loan Full Payment Balance Deferral: 39.3% $ shown in Millions Interest Only $922 Interest Only: 53.6% Full Payment Deferral $675 Line Increases $33 All Other $89 Tota
Slide 12: Credit Quality - COVID-19 Related Modified Loans
Credit Quality - COVID-19 Related Modified Loans Commercial - Number of COVID-19 Related Modified Loans by Week 1 4 1 7 — 8 2 04/06/20 7 7 04/13/20 6 9 3 Consumer 1 0 0 4 04/20/20 2 04/27/20 - Number of COVID-190 5Related/04/2 Modified0 Loans by Week 1 2 3 05/11/20 1 4 1 9 05/18/20 1 1 05/26/20 1 4
Slide 13: Non-Interest Income
Non-Interest Income Non-Interest Income ($ in Millions) Operating Lease Income, Net ($ in Millions) $162.0 $12.5 $14.9 $12.0 $12.0 $10.4 $11.7 $11.8 $115.1 $112.2 $113.2 $11.8 $98.2 $18.2 $15.8 $15.7 $237.0 $15.7 $10.0 $11.0 $11.3 $9.3 $12.0 $12.5 $12.0 $230.1 $228.6 $231.2 $11.7 $102.3 $37.4 $50.9
Slide 14: Mortgage Banking
$102.3 $20.4 Mortgage Banking $4.6 Production Revenue ($ in Millions) MSR1 Value and Loans Serviced for Others ($ in Millions) $48.3 $4.2 $50.9 $93.4 $9,188 $9.4 $0.1 $47.9 MSR - Payoffs/ $8,315 $14.0 Paydowns $8,243 $7.0 $7,901 LOGIC IN $37.4 $7,515 $14.5 $93.4 $7.2 MSR - Change in $0.9 Fair Value
Slide 15: Non-Interest Expense
Non-Interest Expense Trending Non-Interest Expense ($ in Millions) Expense Management Ratios $259.4 1.64% $249.6 1.53% $234.6 $234.6 Salaries and $229.6 $37.4 1.40% $34.5 Employee Benefits 1.33% $28.5 $30.2 $10.4 66.56% $33.2 $7.6 $7.7 $6.5 $7.7 $8.4 $9.3 Equipment $6.2 $8.0 $9.8 $6.7 $7.7 $6.2 $8.9
Slide 16: Capital
Capital Q2 2020 Key Observations Risk-based Capital Ratios • Tangible book value per common share Q2 2019 Q3 2019 Q4 2019 Q1 2020 Q2 2020 was relatively flat from the prior quarter- 1 end and up $2.75 or 5.8% from Q2 2019. Common equity tier 1 capital ratio 9.2% 9.3% 9.2% 8.9% 8.8% Tier 1 capital ra
Slide 17: Non-GAAP Reconciliation
Non-GAAP Reconciliation Three Months Ended Six Months Ended Reconciliation of Non-GAAP Net Interest Margin June 30, March 31, December 31, September June 30, June 30, June 30, 30, and Efficiency Ratio ($ in Thousands): 2020 2020 2019 2019 2019 2020 2019 (A) Interest Income (GAAP) $ 329,816 $ 344,067
Slide 18: Non-GAAP Reconciliation
Non-GAAP Reconciliation Three Months Ended Six Months Ended Reconciliation of Non-GAAP Tangible Book Value per June 30, March 31, December 31, September June 30, June 30, June 30, Common Share ($'s and Shares in Thousands): 2020 2020 2019 201930, 2019 2020 2019 Total shareholders’ equity $ 3,990,218
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 • 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