WINTRUST FINANCIAL CORP [WTFC] Filings

10-Q 1 wtfc-20240630.htm 10-Q wtfc-20240630

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 June 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, 66,500,386 shares, as of August 6, 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	49
ITEM 3.	Quantitative and Qualitative Disclosures About Market Risk	77
ITEM 4.	Controls and Procedures	79
	PART II. — OTHER INFORMATION
ITEM 1.	Legal Proceedings	79
ITEM 1A.	Risk Factors	80
ITEM 2.	Unregistered Sales of Equity Securities, Use of Proceeds and Issuer Purchases of Equity Securities	80
ITEM 3.	Defaults Upon Senior Securities	NA
ITEM 4.	Mine Safety Disclosures	NA
ITEM 5.	Other Information	80
ITEM 6.	Exhibits	81
	Signatures	82

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)	June 30, 2024		December 31, 2023		June 30, 2023
Assets
Cash and due from banks	$	415,462	$	423,404	$	513,858
Federal funds sold and securities purchased under resale agreements	62		60		59
Interest-bearing deposits with banks	2,824,314		2,084,323		2,163,708
Available-for-sale securities, at fair value	4,329,957		3,502,915		3,492,481
Held-to-maturity securities, at amortized cost, net of allowance for credit losses of $491, $347 and $406 at June 30, 2024, December 31, 2023 and June 30, 2023, respectively ($3.1 billion, $3.2 billion and $2.9 billion fair value at June 30, 2024, December 31, 2023 and June 30, 2023, respectively)	3,755,924		3,856,916		3,564,473
Trading account securities	4,134		4,707		3,027
Equity securities with readily determinable fair value	112,173		139,268		116,275
Federal Home Loan Bank and Federal Reserve Bank stock	256,495		205,003		195,117
Brokerage customer receivables	13,682		10,592		15,722
Mortgage loans held-for-sale, at fair value	411,851		292,722		338,728




Loans, net of unearned income	44,675,531		42,131,831		41,023,408
Allowance for loan losses	(363,719)		(344,235)		(302,499)


Net loans	44,311,812		41,787,596		40,720,909
Premises, software and equipment, net	722,295		748,966		749,393
Lease investments, net	275,459		281,280		274,351


Accrued interest receivable and other assets	1,671,334		1,551,899		1,455,748
Trade date securities receivable	—		690,722		—

Goodwill	655,955		656,672		656,674
Other acquisition-related intangible assets	20,607		22,889		25,653
Total assets	$	59,781,516	$	56,259,934	$	54,286,176

Liabilities and Shareholders’ Equity
Deposits:
Non-interest-bearing	$	10,031,440	$	10,420,401	$	10,604,915
Interest-bearing	38,017,586		34,976,769		33,433,792
Total deposits	48,049,026		45,397,170		44,038,707


Federal Home Loan Bank advances	3,176,309		2,326,071		2,026,071

Other borrowings	606,579		645,813		665,219

Subordinated notes	298,113		437,866		437,628
Junior subordinated debentures	253,566		253,566		253,566

Accrued interest payable and other liabilities	1,861,295		1,799,922		1,823,073



Total liabilities	54,244,888		50,860,408		49,244,264
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 June 30, 2024, December 31, 2023 and June 30, 2023	125,000		125,000		125,000
Series E - $25,000 liquidation value; 11,500 shares issued and outstanding at June 30, 2024, December 31, 2023 and June 30, 2023	287,500		287,500		287,500
Common stock, no par value; $1.00 stated value; 100,000,000 shares authorized at June 30, 2024, December 31, 2023 and June 30, 2023; 61,824,947 shares issued at June 30, 2024, 61,268,566 shares issued at December 31, 2023 and 61,219,240 shares issued at June 30, 2023	61,825		61,269		61,219
Surplus	1,964,645		1,943,806		1,923,623
Treasury stock, at cost, 64,808 shares at June 30, 2024, 24,940 shares at December 31, 2023, and 21,564 shares at June 30, 2023	(5,760)		(2,217)		(1,966)
Retained earnings	3,615,616		3,345,399		3,120,626
Accumulated other comprehensive loss	(512,198)		(361,231)		(474,090)
Total shareholders’ equity	5,536,628		5,399,526		5,041,912
Total liabilities and shareholders’ equity	$	59,781,516	$	56,259,934	$	54,286,176

See accompanying notes to unaudited consolidated financial statements.

Table of Contents

WINTRUST FINANCIAL CORPORATION AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED)


	Three Months Ended				Six Months Ended
(Dollars in thousands, except per share data)	June 30, 2024		June 30, 2023		June 30, 2024		June 30, 2023
Interest income
Interest and fees on loans	$	749,812	$	621,057	$	1,460,153	$	1,179,749
Mortgage loans held-for-sale	5,434		4,178		9,580		7,706
Interest-bearing deposits with banks	19,731		16,882		36,389		30,350
Federal funds sold and securities purchased under resale agreements	17		1		36		71
Investment securities	69,779		51,243		139,457		111,186
Trading account securities	13		6		31		20
Federal Home Loan Bank and Federal Reserve Bank stock	4,974		3,544		9,452		7,224
Brokerage customer receivables	219		265		394		560
Total interest income	849,979		697,176		1,655,492		1,336,866
Interest expense
Interest on deposits	335,703		213,495		635,235		358,297
Interest on Federal Home Loan Bank advances	24,797		17,399		46,845		36,534
Interest on other borrowings	8,700		8,485		17,948		16,339
Interest on subordinated notes	5,185		5,523		10,672		11,011
Interest on junior subordinated debentures	4,984		4,737		9,988		9,153
Total interest expense	379,369		249,639		720,688		431,334
Net interest income	470,610		447,537		934,804		905,532
Provision for credit losses	40,061		28,514		61,734		51,559
Net interest income after provision for credit losses	430,549		419,023		873,070		853,973
Non-interest income
Wealth management	35,413		33,858		70,228		63,803
Mortgage banking	29,124		29,981		56,787		48,245
Service charges on deposit accounts	15,546		13,608		30,357		26,511
(Losses) gains on investment securities, net	(4,282)		0		(2,956)		1,398
Fees from covered call options	2,056		2,578		6,903		12,969
Trading gains, net	70		106		747		919
Operating lease income, net	13,938		12,227		28,048		25,273
Other	29,282		20,672		71,613		41,681
Total non-interest income	121,147		113,030		261,727		220,799
Non-interest expense
Salaries and employee benefits	198,541		184,923		393,714		361,704
Software and equipment	29,231		26,205		56,962		50,902
Operating lease equipment	10,834		9,816		21,517		19,649
Occupancy, net	19,585		19,176		38,671		37,662
Data processing	9,503		9,726		18,795		19,135
Advertising and marketing	17,436		17,794		30,476		29,740
Professional fees	9,967		8,940		19,520		17,103
Amortization of other acquisition-related intangible assets	1,122		1,499		2,280		2,734
FDIC insurance	10,429		9,008		24,966		17,677
Other real estate owned expense, net	(259)		118		133		(89)
Other	33,964		33,418		66,464		63,575
Total non-interest expense	340,353		320,623		673,498		619,792
Income before taxes	211,343		211,430		461,299		454,980
Income tax expense	58,955		56,680		121,617		120,032
Net income	$	152,388	$	154,750	$	339,682	$	334,948
Preferred stock dividends	6,991		6,991		13,982		13,982
Net income applicable to common shares	$	145,397	$	147,759	$	325,700	$	320,966
Net income per common share—Basic	$	2.35	$	2.41	$	5.28	$	5.26
Net income per common share—Diluted	$	2.32	$	2.38	$	5.21	$	5.18
Cash dividends declared per common share	$	0.45	$	0.40	$	0.90	$	0.80
Weighted average common shares outstanding	61,839		61,192		61,660		61,072
Dilutive potential common shares	926		902		901		933
Average common shares and dilutive common shares	62,765		62,094		62,561		62,005

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				Six Months Ended
(In thousands)	June 30, 2024		June 30, 2023		June 30, 2024		June 30, 2023
Net income	$	152,388	$	154,750	$	339,682	$	334,948
Unrealized (losses) gains on available-for-sale securities
Before tax	(20,768)		(46,231)		(98,656)		809
Tax effect	5,493		12,322		26,094		(215)
Net of tax	(15,275)		(33,909)		(72,562)		594
Reclassification of net gains on available-for-sale securities included in net income
Before tax	1,204		2		1,178		562
Tax effect	(319)		(1)		(312)		(152)
Net of tax	885		1		866		410
Reclassification of amortization of unrealized gains on investment securities transferred to held-to-maturity from available-for-sale
Before tax	14		28		64		71
Tax effect	(4)		(8)		(17)		(19)
Net of tax	10		20		47		52
Net unrealized (losses) gains on available-for-sale securities	(16,170)		(33,930)		(73,475)		132
Unrealized (losses) gains on derivative instruments
Before tax	(10,843)		(106,431)		(92,934)		(71,765)
Tax effect	2,868		28,363		24,581		19,125
Net unrealized (losses) gains on derivative instruments	(7,975)		(78,068)		(68,353)		(52,640)
Foreign currency adjustment
Before tax	(3,558)		6,527		(11,207)		7,417
Tax effect	653		(1,183)		2,068		(1,363)
Net foreign currency adjustment	(2,905)		5,344		(9,139)		6,054
Total other comprehensive (loss) income	(27,050)		(106,654)		(150,967)		(46,454)
Comprehensive income	$	125,338	$	48,096	$	188,715	$	288,494

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 income (loss)		Total shareholders’ equity
Balance at March 31, 2023	$	412,500	$	61,198	$	1,913,947	$	(1,966)	$	2,997,263	$	(367,436)	$	5,015,506

Net income	—		—		—		—		154,750		—		154,750
Other comprehensive loss, net of tax	—		—		—		—		—		(106,654)		(106,654)
Cash dividends declared on common stock, $0.40 per share	—		—		—		—		(24,396)		—		(24,396)
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	—		—		8,108		—		—		—		8,108

Common stock issued for:


Restricted stock awards	—		8		(8)		—		—		—		—
Employee stock purchase plan	—		13		894		—		—		—		907
Director compensation plan	—		—		682		—		—		—		682
Balance at June 30, 2023	$	412,500	$	61,219	$	1,923,623	$	(1,966)	$	3,120,626	$	(474,090)	$	5,041,912

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	—		—		—		—		334,948		—		334,948
Other comprehensive loss, net of tax	—		—		—		—		—		(46,454)		(46,454)
Cash dividends declared on common stock, $0.80 per share	—		—		—		—		(48,803)		—		(48,803)
Dividends on Series D preferred stock, $0.82 per share and Series E preferred stock, $859.38 per share	—		—		—		—		(13,982)		—		(13,982)

Stock-based compensation	—		—		16,403		—		—		—		16,403

Common stock issued for:

Exercise of stock options	—		54		2,162		—		—		—		2,216
Restricted stock awards	—		283		(283)		(1,662)		—		—		(1,662)
Employee stock purchase plan	—		22		1,579		—		—		—		1,601
Director compensation plan	—		63		1,288		—		—		—		1,351
Balance at June 30, 2023	$	412,500	$	61,219	$	1,923,623	$	(1,966)	$	3,120,626	$	(474,090)	$	5,041,912

Balance at March 31, 2024	$

WINTRUST FINANCIAL CORP [WTFC] Filings
WINTRUST FINANCIAL CORP [WTFCM] Filings
WINTRUST FINANCIAL CORP [WTFCP] Filings
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