Slide 1: Earnings Release Presentation Q1 2024
Wintrust Financial Corporation Earnings Release Presentation Q1 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: Q1 2024 Highlights (Comparative to Q4 2023)
Q1 2024 Highlights (Comparative to Q4 2023) Net Income Pre-Tax, Pre-Provision1 Diluted EPS $187.3 million $271.6 million $2.89 +$63.8 million +$63.5 million +$1.02 Return on Assets ROE / ROTCE Efficiency Ratio (GAAP) (non-GAAP) (GAAP) (non-GAAP) 1.35% 14.42% 16.75% 55.21% 54.95% +46 bps +449 bps +50
Slide 5: Earnings Summary
Earnings Summary Differentiated, highly diversified and sustainable business model Record Quarterly Net Income Quarterly Pre-Tax Income, excluding Provision for Credit Losses ($ in Millions) ($ in Millions) $180.2 $187.3 $266.6 $271.6 $164.2 $154.8 $239.9 $244.8 1.40% $123.5 1.35% $208.2 1.18% 1.20%
Slide 6: Loan Portfolio
Loan Portfolio Diversified loan portfolio Robust Loan Growth Coupled with Higher Loan Yield Diversified Loan Mix (as of 3/31/2024) ($ in Billions) Year-over-Year Change 7% $3.6B or 9% in Total Loans 1% $43.2 18% $42.1 $39.6 16% 6.69% 6.80% 5.82% 31% 27% 3/31/2023 12/31/2023 3/31/2024 Commercial Comm
Slide 7: Deposit Portfolio
Deposit Portfolio Enviable core deposit franchise in Chicago and Milwaukee market areas Deposit Growth Supported by Strong Franchise Highlights ($ in Billions) $46.5 • Robust first quarter deposit growth totaling $1.1 billion $45.4 • Deposit base and liquidity remained strong despite a volatile mark
Slide 8: Deposit Portfolio
Deposit Portfolio Deposit beta increase driven by competitive deposit pricing to fund quality loan growth Deposit Beta Moderation Continues in Q1 2024 Fed Funds Upper Target up 525 bps Total Interest-Bearing Deposit Beta 62% Total Deposit Beta 48% 5.50% 3.48% 2.70% 0.25% 0.24% 0.16% 12/31/21 3/31/20
Slide 9: Capital/Liquidity
Capital/Liquidity Current capital levels are well in excess of regulatory thresholds with the Company's capital levels increasing slightly as strong earnings fund robust growth Capital Levels Remained Stable Supporting Strong Growth CET1 Increased Primarily due to Strong Earnings CET1 Ratio 12.1% 12
Slide 10: Net Interest Margin/Income
Net Interest Margin/Income Net interest margin within guidance range; coupled with earning asset growth and strong net interest income Q1 2024 NIM Decreased Primarily Due to Declines in Non-Interest-Bearing Deposit Balances, Deposit Migration to Interest-Bearing Products and Competitive Deposit Pric
Slide 11: Non-Interest Income
Non-Interest Income Diversified fee businesses support non-interest income levels despite challenging mortgage environment Other Income Increased in Q1 2024 Primarily due to a $20MM Gain from the Sale of the Company's Retirement Benefits Advisors Division Consistently Strong Wealth Management Busine
Slide 12: Non-Interest Expense
Non-Interest Expense Continue to monitor our expenses and believe they are in line with Company growth Commissions and Incentives Increase Partially Driven by the Sale of the Q1 2024 and Q4 2023 Efficiency Ratio Impacted by FDIC Special Retirement Benefits Advisors Division Assessment and Gain on Sa
Slide 13: Credit Quality
Credit Quality Exceptional credit quality supported by a diversified loan portfolio Net Charge-Offs Increased Primarily Due to Charges that were Previously Manageable Levels of Non-Performing Loans Reserved for in the Fourth Quarter of 2023 ($ in Millions) ($ in Millions) 0.32% 0.33% 0.34% 0.25% 0.2
Slide 14: Credit Quality - Allowance for Loan Losses
Credit Quality - Allowance for Loan Losses The Company remains well-reserved Sufficient Allowance Coverage of Total Loan Portfolio Well-Reserved Across Our Core Loan Portfolio ($ in Billions) ($ in Billions) $43.2 $42.1 $25.4 $41.4 $24.6 $24.1 0.96% 1.01% 0.99% 1.51% 1.55% 1.51% 9/30/2023 12/31/2023
Slide 15: Credit Quality - Commercial Loans
Credit Quality - Commercial Loans Diversified portfolio with low net charge-offs Strong Portfolio Growth Paired with Nominal Net Charge-Off Ratio Low Levels of Non-Performing Commercial Loans ($ in Millions) ($ in Millions) $13,503 $48.0 $43.8 $41.0 $39.0 $12,832 0.33% $12,725 0.38% $31.8 $12,577 $1
Slide 16: Credit Quality - Commercial Real Estate Loans
Credit Quality - Commercial Real Estate Loans Well-diversified portfolio with a majority of its exposure in stabilized, income producing properties Manageable Levels of CRE NPLs with Continued Proactive Reviews Relatively Low Levels of Net Charge-offs of Credit ($ in Millions) ($ in Millions) $39.3
Slide 17: CRE Office Portfolio (as of 3/31/2024)
CRE Office Portfolio (as of 3/31/2024) CRE office represents a minimal percentage of the total loan portfolio As of As of CRE Office Portfolio Geography Portfolio Characteristics 12/31/2023 3/31/2024 ($ in Millions) 1 2 Chicago CBD, Other CBD, 12% Balance ($ in Millions) $1,455 $1,567 12% CRE office
Slide 18: Credit Quality Premium Finance Receivables - Life Insurance
Credit Quality Premium Finance Receivables - Life Insurance Life Insurance portfolio remains steady and has continued to demonstrate exceptional credit quality Q1 2024 Balances Remained Stable with Strong Credit Quality Strong Portfolio with Persistently Low Levels of Non-Performing Loans ($ in Mill
Slide 19: Premium Finance Receivables - Property and Casualty Insurance
Premium Finance Receivables - Property and Casualty Insurance Continued Stable Balances for Q1 2024 Moderate Levels of Non-Performing Loans ($ in Millions) ($ in Millions) $58.5 $6,904 $6,940 $47.7 $6,763 $6,723 $43.0 $5,739 0.32% $32.4 0.29% 0.29% $27.8 0.84% 0.23% 0.24% 0.69% 0.64% 0.48% 0.48% 3/3
Slide 20: Appendix
Appendix WINTRUST 2
Slide 21: Hedging Strategy Update
Hedging Strategy Update Use of Hedges to Mitigate Negative Impacts of Falling Rates Hedging activities had a 19 basis point detriment to our Q1 2024 NIM and remained flat compared to Q4 2023. These derivatives are expected to benefit the Company if interest rates fall materially. Below are the detai
Slide 22: Loan Portfolio
Loan Portfolio Highly diversified portfolio across U.S Loan Portfolio - Geographic Diversification1 (as of 3/31/2024) Canada: 1.9% 1.2% 4.3% 4.8% 1.5% 1.5% 2.3% 2.6% 2.1% 1.9% 34.8% 1.7% 8.7% 1.4% 1.4% 1.5% Primary Geographic Total Loan Portfolio Region Commercial: 1.7% Commercial, industrial and ot
Slide 23: Glossary
Glossary Abbreviation Definition AFS Available For Sale BOLI Bank Owned Life Insurance BP Basis Point BV Book Value per Common Share CBD Central Business District CET1 Ratio Common Equity Tier 1 Capital Ratio CRE Commercial Real Estate Diluted EPS Net Income per Common Share - Diluted FDIC Federal D
Slide 24: Non-GAAP Reconciliation
Non-GAAP Reconciliation Three Months Ended Reconciliation of non-GAAP Net Interest Margin and Efficiency March 31, December 31, September 30, June 30, March 31, Ratio ($ in Thousands): 2024 2023 2023 2023 2023 (A) Interest Income (GAAP) $ 805,513 $ 793,848 $ 762,400 $ 697,176 $ 639,690 Taxable-equiv
Slide 25: Non-GAAP Reconciliation
Non-GAAP Reconciliation Three Months Ended March 31, December 31, September 30, June 30, March 31, Reconciliation of non-GAAP Return on Average Tangible Common 2024 2023 2023 2023 2023 Equity ($ in Thousands): (N) Net income applicable to common shares $ 180,303 $ 116,489 $ 157,207 $ 147,759 $ 173,2
Slide 26: Non-GAAP Reconciliation
Non-GAAP Reconciliation Three Months Ended March 31, December 31, September 30, June 30, March 31, Reconciliation of non-GAAP Tangible Common Equity 2024 2023 2023 2023 2023 (#039;s and Shares in Thousands): Total shareholders’ equity (GAAP) $ 5,436,400 $ 5,399,526 $ 5,015,613 $ 5,041,912 $ 5,015,506 L