ROSEMONT -- Wintrust Financial Corp. said second quarter 2013 income rose 34 percent to $34.3 million or 69 cents per share.
The figures were in comparison to $32.1 million or 65 cents per share for the first quarter of 2013 and $25.6 million or 52 cents per diluted common share for the second quarter of 2012.
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"The second quarter of 2013 was highlighted by solid loan growth, increased net interest margin, improved utilization of liquidity and another strong quarter of mortgage banking and wealth management results," said Edward J. Wehmer, Wintrust president and chief executive officer.
"We continue to be asset driven utilizing a portion of our liquidity to fund continued strong loan growth particularly in our commercial and commercial real-estate portfolios," Wehmer added. "The increase in net interest margin in the second quarter compared to the first quarter of this year is a direct result of our effective use of our liquidity position during the current quarter. Over the past five quarters, the company has strategically purchased interest rate caps to position itself for the potential rise in interest rates. In the second quarter, long term interest rates rose resulting in increased valuations of the interest rate caps which were recorded as trading gains."
Other highlights of Wintrust's second quarter, compared with the First Quarter of 2013, include:
• Net income increased by $2.2 million
• Net interest margin increased by nine basis points to 3.5 percent from 3.41 percent
• Total loans, excluding covered loans and loans held-for-sale, increased $617 million
• Nonperforming loans as a percent of total loans, excluding covered loans and loans held-for-sale, decreased to 0.97%, the lowest level since the third quarter of 2007
• Pretax adjusted earnings continues to grow, increasing $2.7 million
• Mortgage banking revenue increased by $1.6 million as a result of an 8% increase in originations
• $3.7 million increase in trading gains primarily related to the mark-to-market valuation of interest rate caps
• Completed the acquisition of First Lansing Bancorp, Inc., the parent company of First National Bank of Illinois.
"We are excited about the addition of First National Bank of Illinois to the Wintrust family," Wehmer said. "Strategic acquisitions of this nature and organic branch growth will continue to be an important piece of our long-term strategy. During the second half of 2013, we expect our organic branch growth to include approximately five new locations."
The Company's total assets of $17.6 billion at June 30 increased $1 billion from June 30, 2012. Total deposits as of June 30 were $14 billion, an increase of $1.3 billion from June 30, 2012. Noninterest bearing deposits increased by $403 million, or 20 percent, since June 30, 2012, primarily due to demand deposits from new relationships generated by the company's commercial lending initiative.