WINTRUST FINANCIAL CORP [WTFC] Filings

10-Q 1 wtfc-20240930.htm 10-Q wtfc-20240930

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

_________________________________________

FORM 10-Q

_________________________________________


☑			QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended September 30, 2024


☐			TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from to

Commission File Number 001-35077

_____________________________________

WINTRUST FINANCIAL CORPORATION

(Exact name of registrant as specified in its charter)


Illinois			36-3873352
(State of incorporation or organization)			(I.R.S. Employer Identification No.)

9700 W. Higgins Road, Suite 800

Rosemont, Illinois 60018

(Address of principal executive offices)

(847) 939-9000

(Registrant’s telephone number, including area code)


Title of Each Class	Ticker Symbol	Name of Each Exchange on Which Registered
Common Stock, no par value	WTFC	The NASDAQ Global Select Market
Fixed-to-Floating Rate Non-Cumulative Perpetual Preferred Stock, Series D, no par value	WTFCM	The NASDAQ Global Select Market
Depositary Shares, Each Representing a 1/1,000th Interest in a Share of	WTFCP	The NASDAQ Global Select Market
6.875% Fixed-Rate Reset Non-Cumulative Perpetual Preferred Stock, Series E, no par value

____________________________________

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☑ No ☐

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files). Yes ☑ No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act. (Check one):

Large accelerated filer

☑

Accelerated filer

☐

Non-accelerated filer

☐

(Do not check if a smaller reporting company)

Smaller reporting company

☐

Emerging growth company

☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No ☑

Indicate the number of shares outstanding of each of the issuer’s classes of common stock, as of the latest practicable date.

Common Stock — no par value, 66,492,204 shares, as of October 31, 2024

Table of Contents

TABLE OF CONTENTS


		Page
	PART I. — FINANCIAL INFORMATION
ITEM 1.	Financial Statements	1
ITEM 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	48
ITEM 3.	Quantitative and Qualitative Disclosures About Market Risk	76
ITEM 4.	Controls and Procedures	78
	PART II. — OTHER INFORMATION
ITEM 1.	Legal Proceedings	78
ITEM 1A.	Risk Factors	79
ITEM 2.	Unregistered Sales of Equity Securities, Use of Proceeds and Issuer Purchases of Equity Securities	79
ITEM 3.	Defaults Upon Senior Securities	NA
ITEM 4.	Mine Safety Disclosures	NA
ITEM 5.	Other Information	79
ITEM 6.	Exhibits	80
	Signatures	81

Table of Contents

PART I

ITEM 1. FINANCIAL STATEMENTS


WINTRUST FINANCIAL CORPORATION AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CONDITION
	(Unaudited)				(Unaudited)
(Dollars in thousands, except per share data)	September 30, 2024		December 31, 2023		September 30, 2023
Assets
Cash and due from banks	$	725,465	$	423,404	$	418,088
Federal funds sold and securities purchased under resale agreements	5,663		60		60
Interest-bearing deposits with banks	3,648,117		2,084,323		2,448,570
Available-for-sale securities, at fair value	3,912,232		3,502,915		3,611,835
Held-to-maturity securities, at amortized cost, net of allowance for credit losses of $479, $347 and $381 at September 30, 2024, December 31, 2023 and September 30, 2023, respectively ($3.1 billion, $3.2 billion and $3.1 billion fair value at September 30, 2024, December 31, 2023 and September 30, 2023, respectively)	3,677,420		3,856,916		3,909,150
Trading account securities	3,472		4,707		1,663
Equity securities with readily determinable fair value	125,310		139,268		134,310
Federal Home Loan Bank and Federal Reserve Bank stock	266,908		205,003		204,040
Brokerage customer receivables	16,662		10,592		14,042
Mortgage loans held-for-sale, at fair value	461,067		292,722		304,808




Loans, net of unearned income	47,067,447		42,131,831		41,446,032
Allowance for loan losses	(360,279)		(344,235)		(315,039)


Net loans	46,707,168		41,787,596		41,130,993
Premises, software and equipment, net	772,002		748,966		747,501
Lease investments, net	270,171		281,280		275,152


Accrued interest receivable and other assets	1,721,090		1,551,899		1,674,681
Trade date securities receivable	551,031		690,722		—

Goodwill	800,780		656,672		656,109
Other acquisition-related intangible assets	123,866		22,889		24,244
Total assets	$	63,788,424	$	56,259,934	$	55,555,246

Liabilities and Shareholders’ Equity
Deposits:
Non-interest-bearing	$	10,739,132	$	10,420,401	$	10,347,006
Interest-bearing	40,665,834		34,976,769		34,645,680
Total deposits	51,404,966		45,397,170		44,992,686


Federal Home Loan Bank advances	3,171,309		2,326,071		2,326,071

Other borrowings	647,043		645,813		643,999

Subordinated notes	298,188		437,866		437,731
Junior subordinated debentures	253,566		253,566		253,566

Accrued interest payable and other liabilities	1,613,638		1,799,922		1,885,580



Total liabilities	57,388,710		50,860,408		50,539,633
Shareholders’ Equity:
Preferred stock, no par value; 20,000,000 shares authorized:


Series D - $25 liquidation value; 5,000,000 shares issued and outstanding at September 30, 2024, December 31, 2023 and September 30, 2023	125,000		125,000		125,000
Series E - $25,000 liquidation value; 11,500 shares issued and outstanding at September 30, 2024, December 31, 2023 and September 30, 2023	287,500		287,500		287,500
Common stock, no par value; $1.00 stated value; 100,000,000 shares authorized at September 30, 2024, December 31, 2023 and September 30, 2023;66,546,351 shares issued at September 30, 2024, 61,268,566 shares issued at December 31, 2023 and 61,243,622 shares issued at September 30, 2023	66,546		61,269		61,244
Surplus	2,470,228		1,943,806		1,933,226
Treasury stock, at cost, 64,808 shares at September 30, 2024, 24,940 shares at December 31, 2023, and 21,564 shares at September 30, 2023	(6,098)		(2,217)		(1,966)
Retained earnings	3,748,715		3,345,399		3,253,332
Accumulated other comprehensive loss	(292,177)		(361,231)		(642,723)
Total shareholders’ equity	6,399,714		5,399,526		5,015,613
Total liabilities and shareholders’ equity	$	63,788,424	$	56,259,934	$	55,555,246

See accompanying notes to unaudited consolidated financial statements.

Table of Contents

WINTRUST FINANCIAL CORPORATION AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED)


	Three Months Ended				Nine Months Ended
(Dollars in thousands, except per share data)	September 30, 2024		September 30, 2023		September 30, 2024		September 30, 2023
Interest income
Interest and fees on loans	$	794,163	$	666,260	$	2,254,316	$	1,846,009
Mortgage loans held-for-sale	6,233		4,767		15,813		12,473
Interest-bearing deposits with banks	32,608		26,866		68,997		57,216
Federal funds sold and securities purchased under resale agreements	277		1,157		313		1,228
Investment securities	69,592		59,164		209,049		170,350
Trading account securities	11		6		42		26
Federal Home Loan Bank and Federal Reserve Bank stock	5,451		3,896		14,903		11,120
Brokerage customer receivables	269		284		663		844
Total interest income	908,604		762,400		2,564,096		2,099,266
Interest expense
Interest on deposits	362,019		262,783		997,254		621,080
Interest on Federal Home Loan Bank advances	26,254		17,436		73,099		53,970
Interest on other borrowings	9,013		9,384		26,961		25,723
Interest on subordinated notes	3,712		5,491		14,384		16,502
Interest on junior subordinated debentures	5,023		4,948		15,011		14,101
Total interest expense	406,021		300,042		1,126,709		731,376
Net interest income	502,583		462,358		1,437,387		1,367,890
Provision for credit losses	22,334		19,923		84,068		71,482
Net interest income after provision for credit losses	480,249		442,435		1,353,319		1,296,408
Non-interest income
Wealth management	37,224		33,529		107,452		97,332
Mortgage banking	15,974		27,395		72,761		75,640
Service charges on deposit accounts	16,430		14,217		46,787		40,728
Gains (losses) on investment securities, net	3,189		(2,357)		233		(959)
Fees from covered call options	988		4,215		7,891		17,184
Trading (losses) gains, net	(130)		728		617		1,647
Operating lease income, net	15,335		13,863		43,383		39,136
Other	24,137		20,888		95,750		62,569
Total non-interest income	113,147		112,478		374,874		333,277
Non-interest expense
Salaries and employee benefits	211,261		192,338		604,975		554,042
Software and equipment	31,574		25,951		88,536		76,853
Operating lease equipment	10,518		12,020		32,035		31,669
Occupancy, net	19,945		21,304		58,616		58,966
Data processing	9,984		10,773		28,779		29,908
Advertising and marketing	18,239		18,169		48,715		47,909
Professional fees	9,783		8,887		29,303		25,990
Amortization of other acquisition-related intangible assets	4,042		1,408		6,322		4,142
FDIC insurance	10,512		9,748		35,478		27,425
Other real estate owned expense, net	(938)		120		(805)		31
Other	35,767		29,337		102,231		92,912
Total non-interest expense	360,687		330,055		1,034,185		949,847
Income before taxes	232,709		224,858		694,008		679,838
Income tax expense	62,708		60,660		184,325		180,692
Net income	$	170,001	$	164,198	$	509,683	$	499,146
Preferred stock dividends	6,991		6,991		20,973		20,973
Net income applicable to common shares	$	163,010	$	157,207	$	488,710	$	478,173
Net income per common share—Basic	$	2.51	$	2.57	$	7.79	$	7.82
Net income per common share—Diluted	$	2.47	$	2.53	$	7.67	$	7.71
Cash dividends declared per common share	$	0.45	$	0.40	$	1.35	$	1.20
Weighted average common shares outstanding	64,888		61,213		62,743		61,119
Dilutive potential common shares	1,053		964		934		888
Average common shares and dilutive common shares	65,941		62,177		63,677		62,007

See accompanying notes to unaudited consolidated financial statements.

Table of Contents

WINTRUST FINANCIAL CORPORATION AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (UNAUDITED)


	Three Months Ended				Nine Months Ended
(In thousands)	September 30, 2024		September 30, 2023		September 30, 2024		September 30, 2023
Net income	$	170,001	$	164,198	$	509,683	$	499,146
Unrealized gains (losses) on available-for-sale securities
Before tax	168,166		(178,080)		69,510		(177,271)
Tax effect	(43,688)		47,458		(17,594)		47,243
Net of tax	124,478		(130,622)		51,916		(130,028)
Reclassification of net gains on available-for-sale securities included in net income
Before tax	45		158		1,223		720
Tax effect	(6)		(40)		(318)		(192)
Net of tax	39		118		905		528
Reclassification of amortization of unrealized gains on investment securities transferred to held-to-maturity from available-for-sale
Before tax	14		31		78		102
Tax effect	(4)		(8)		(21)		(27)
Net of tax	10		23		57		75
Net unrealized gains (losses) on available-for-sale securities	124,429		(130,763)		50,954		(130,631)
Unrealized gains (losses) on derivative instruments
Before tax	124,848		(43,082)		31,914		(114,847)
Tax effect	(32,460)		11,482		(7,879)		30,607
Net unrealized gains (losses) on derivative instruments	92,388		(31,600)		24,035		(84,240)
Foreign currency adjustment
Before tax	3,884		(8,359)		(7,323)		(942)
Tax effect	(680)		2,089		1,388		726
Net foreign currency adjustment	3,204		(6,270)		(5,935)		(216)
Total other comprehensive income (loss)	220,021		(168,633)		69,054		(215,087)
Comprehensive income (loss)	$	390,022	$	(4,435)	$	578,737	$	284,059

See accompanying notes to unaudited consolidated financial statements.

Table of Contents


WINTRUST FINANCIAL CORPORATION AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS’ EQUITY (UNAUDITED)
(Dollars in thousands, except per share data)	Preferred stock		Common stock		Surplus		Treasury stock		Retained earnings		Accumulated other comprehensive loss		Total shareholders’ equity
Balance at June 30, 2023	$	412,500	$	61,219	$	1,923,623	$	(1,966)	$	3,120,626	$	(474,090)	$	5,041,912

Net income	—		—		—		—		164,198		—		164,198
Other comprehensive loss, net of tax	—		—		—		—		—		(168,633)		(168,633)
Cash dividends declared on common stock, $0.40 per share	—		—		—		—		(24,501)		—		(24,501)
Dividends on Series D preferred stock, $0.41 per share and Series E preferred stock, $429.69 per share	—		—		—		—		(6,991)		—		(6,991)

Stock-based compensation	—		—		8,130		—		—		—		8,130

Common stock issued for:


Restricted stock awards	—		13		(13)		—		—		—		—
Employee stock purchase plan	—		12		804		—		—		—		816
Director compensation plan	—		—		682		—		—		—		682
Balance at September 30, 2023	$	412,500	$	61,244	$	1,933,226	$	(1,966)	$	3,253,332	$	(642,723)	$	5,015,613

Balance at January 1, 2023	$	412,500	$	60,797	$	1,902,474	$	(304)	$	2,849,007	$	(427,636)	$	4,796,838
Cumulative effect adjustment from the adoption of ASU 2022-02 (TDR), net of tax	—		—		—		—		(544)		—		(544)
Net income	—		—		—		—		499,146		—		499,146
Other comprehensive loss, net of tax	—		—		—		—		—		(215,087)		(215,087)
Cash dividends declared on common stock, $1.20 per share	—		—		—		—		(73,304)		—		(73,304)
Dividends on Series D preferred stock, $1.23 per share and Series E preferred stock, $1,289.07 per share	—		—		—		—		(20,973)		—		(20,973)

Stock-based compensation	—		—		24,532		—		—		—		24,532

Common stock issued for:

Exercise of stock options	—		54		2,162		—		—		—		2,216
Restricted stock awards	—		296		(296)		(1,662)		—		—		(1,662)
Employee stock purchase plan	—		34		2,384		—		—		—		2,418
Director compensation plan	—		63		1,970		—		—		—		2,033
Balance at September 30, 2023	$	412,500	$	61,244	$	1,933,226	$	(1,966)

WINTRUST FINANCIAL CORP [WTFC] Filings
WINTRUST FINANCIAL CORP [WTFCM] Filings
WINTRUST FINANCIAL CORP [WTFCP] Filings
10-Q	[2024-11-08]
10-Q	[2024-08-08]
10-Q	[2024-05-09]
10-K	[2024-02-28]
10-Q	[2023-11-08]
10-Q	[2023-08-09]
10-Q	[2023-05-09]
10-K	[2023-02-28]
10-Q	[2022-11-08]
10-Q	[2022-08-08]
10-Q	[2022-05-06]
10-K	[2022-02-25]
10-Q	[2021-11-08]
10-Q	[2021-08-06]
10-Q	[2021-05-07]
10-K	[2021-02-26]
10-Q	[2020-11-06]
10-Q	[2020-08-07]
10-Q	[2020-05-05]
10-K	[2020-02-28]
10-Q	[2019-11-08]
10-Q	[2019-08-09]
10-Q	[2019-05-09]
10-K	[2019-02-28]
10-Q	[2018-11-09]
10-Q	[2018-08-08]
10-Q	[2018-05-09]
10-K	[2018-02-28]
10-Q	[2017-11-08]
10-Q	[2017-08-08]
10-Q	[2017-05-09]
10-K	[2017-02-28]
10-Q	[2016-11-08]
10-Q	[2016-08-08]
10-Q	[2016-05-09]
10-K	[2016-02-29]
10-Q	[2015-11-09]
10-Q	[2015-08-10]
10-Q	[2015-05-08]
10-K	[2015-02-27]
10-Q	[2014-11-07]
10-Q	[2014-08-08]
10-Q	[2014-05-08]
10-K	[2014-02-28]
10-Q	[2013-11-07]
10-Q	[2013-08-08]
10-Q	[2013-05-09]
10-K	[2013-02-28]
10-Q	[2012-11-08]
10-Q	[2012-08-09]
10-Q	[2012-05-09]
10-K	[2012-02-29]

WINTRUST FINANCIAL CORP [WTFC] Filings

WINTRUST FINANCIAL CORP [WTFCM] Filings

WINTRUST FINANCIAL CORP [WTFCP] Filings