WINTRUST FINANCIAL CORPORATION Wintrust Financial Corporation
Earnings Release
Presentation
Q4 2021
Q4 2021 Summary
Celebrated Wintrust's 30th anniversary by reporting record annual net income and eclipsing $50 billion in total assets. The fourth quarter of 2021 was characterized by significant loan and deposit growth, increased net interest income, seasonally strong mortgage banking revenue, tangible book value growth and impressive credit quality metrics.
2
Q4 2021 Highlights
Performance Highlights | vs. Q3 2021 |
(Q4 2021) | |
$98.8 million | -$10.4 million | |
Net Income | Net Income | |
$1.58 | -$0.19 | |
Diluted EPS1 | Diluted EPS1 | |
0.80% | -12 bps2 | |
ROA3 | ROA3 | |
9.05% | -126 bps2 | |
ROE4 | ROE4 | |
1.21% | -1 bp2 | |
Net Overhead Ratio | Net Overhead Ratio | |
65.78% | -39 bps2 | |
Efficiency Ratio (GAAP) | Efficiency Ratio (GAAP) | |
65.64% | -39 bps2 | |
Efficiency Ratio (Non-GAAP5) | Efficiency Ratio (Non-GAAP5) | |
As of 12/31/2021 | vs. 9/30/2021 | |
$50.1 billion | +$2.3 billion | |
Total Assets | Total Assets | |
$34.8 billion | +$1.5 billion | |
Total Loans | Total Loans | |
$42.1 billion | +$2.1 billion | |
Total Deposits | Total Deposits |
Fourth Quarter 2021 Highlights as compared to Third Quarter 2021
- Total loans, excluding Paycheck Protection Program ("PPP") loans, increased by $2.0 billion, or 25% on an annualized basis.
- Total deposits increased by $2.1 billion.
- Net interest income increased by $8.5 million as compared to the third quarter of 2021 as follows:
- Increased $15.5 million primarily due to earning asset growth and a five basis point decline in deposit costs.
- Decreased by $7.0 million due to $1.7 million less PPP interest income and $5.3 million less PPP fee income.
- Net interest margin decreased by four basis points primarily due to increased liquidity which had approximately a six basis point unfavorable impact.
- Recorded a provision for credit losses of $9.3 million in the fourth quarter of 2021 as compared to a negative provision for credit losses of $7.9 million in the third quarter of 2021. The provision for credit losses in the fourth quarter of 2021 was primarily due to strong loan growth with approximately $782,000 of provision for credit losses related to acquired loans.
- Recorded $6.2 million of net charge-offs or seven basis points on an annualized basis in the fourth quarter of 2021 as compared to no material net charge-offs in the third quarter of 2021.
- Tangible book value per common share (non-GAAP) increased to $59.64 as compared to $58.32 as of September 30, 2021.5
- Diluted EPS: Net Income Per Common Share - Diluted 2 Bps: Basis Points 3 ROA: Return on Average Assets
4 ROE: Return on Average Common Equity 5See Non-GAAP reconciliation on pg. 23 | 3 |
Earnings Summary
Condensed Income Statement | Current Q | Current Q Difference vs. |
Net Income & ROA ($ in Millions)
Thousands ($)
Net Interest Income
Non-Interest Income
Net Revenue
Non-Interest Expense
Pre-Provision Net Revenue
Provision For Credit Losses
Income Before Taxes
Income Tax Expense
Net Income
Preferred Stock Dividends
Net Income Available to Common Shares
Diluted EPS
ROA
ROE
Q4 2021 | Q3 2021 | Q4 2020 | ||
$295,976 | $8,480 | $36,579 | ||
$133,767 | $(2,707) | $(24,594) | ||
$429,743 | $5,773 | $11,985 | ||
$283,399 | $1,255 | $1,532 | ||
$146,344 | $4,518 | $10,453 | ||
$9,299 | $17,215 | $8,119 | ||
$137,045 | $(12,697) | $2,334 | ||
$38,288 | $(2,317) | $4,781 | ||
$98,757 | $(10,380) | $(2,447) | ||
$6,991 | $- | $- | ||
$91,766 | $(10,380) | $(2,447) | ||
$1.58 | $(0.19) | $(0.05) | ||
0.80% | -12 bps | -12 bps | ||
9.05% | -126 bps | -125 bps |
Diluted EPS
Pre-Tax Income, excluding Provision for Credit Losses - 5 Quarter Trend (Non-GAAP1) ($ in Millions)
1 See Non-GAAP reconciliation on pg. 24 | 4 |
Loan Portfolio
Key Observations
- Total loans, excluding Paycheck Protection Program ("PPP") loans, increased by $2.0 billion, as compared to September 30, 2021, primarily due to a $1.2 billion increase in commercial loans excluding PPP, of which $578 million was related to acquired loans, and a $387 million increase in premium finance receivables - life insurance.
- Total period end loans as of December 31, 2021 were $1.1 billion higher than average total loans in the fourth quarter of 2021.
- Before the impact of scheduled payments and prepayments, gross commercial and commercial real estate loan pipelines were estimated to be approximately $1.1 billion to $1.3 billion at December 31, 2021, as compared to $1.4 billion to $1.5 billion at September 30, 2021. When adjusted for the probability of closing, the pipelines were estimated to be approximately $700 million to $800 million at December 31, 2021, as compared to $900 million to $1.0 billion at September 30, 2021.
Total Loans ($ in Billions)
Year-over-Year Change
$2.7B or 8% in Total Loans, $4.9B or 17% in Total Loans excl. PPP loans
Loan Composition (as of 12/31/2021)
20%
32% | |
14% | |
2% | |
5% | 26% |
1% |
Commercial excl. PPP Commercial PPP Commercial Real Estate Home Equity Residential Real Estate
Premium Finance Receivables - Commercial Premium Finance Receivables - Life Insurance
Total Loans as of 12/31/2021 vs. 9/30/2021 ($ in Millions)
$387 $78
$239$34,789
$578 $105
$662
$33,264
$(524)
9/30/2021 Commercial | All Other | Acquired | Commercial | Premium | Premium | All Other | 12/31/2021 |
PPP | Commercial | Insurance | Real Estate | Finance | Finance | Loans | |
Loans | Agency | Receivables | Receivables | ||||
Loans | - | - Life | |||||
Commercial | Insurance | ||||||
Insurance |
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Wintrust Financial Corporation published this content on 19 January 2022 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 19 January 2022 22:05:09 UTC.
