Wintrust reports $50 million 2Q net income

ROSEMONT - Wintrust Financial Corp. announced net income of $50 million, or 90 cents per diluted common share, for the second quarter of 2016 compared to net income of $49.1 million or 90 cents per diluted common share, for the first quarter of 2016 and $43.8 million, or 85 cents per diluted common share, for the second quarter of 2015.

The company recorded net income of $99.2 million, or $1.80 per diluted common share, for the first six months of 2016 compared to net income of $82.9 million, or $1.61 per diluted common share, for the same period of 2015.

During the first quarter of 2016, the suburban baking group said total assets increased by 16 percent on an annualized basis to $24.4 billion; total loans, excluding covered loans and mortgage loans held-for-sale, increased by $728 million, or 17 percent on annualized basis, to $18.2 billion; total deposits increased by $825 million, or 17 percent on an annualized basis, to $20 billion, and mortgage banking revenue increased $15.1 million to $36.8 million.

"The second quarter results reflected the strength of the internal growth engine at Wintrust as we recorded just under $1 billion of organic asset growth," said Wintrust President and Chief Executive Officer Edward J. Wehmer.

"The results also reflect our commitment to grow into our infrastructure while controlling operating expenses as our net overhead ratio dropped to 1.46 percent for the quarter, well on our way to being under the goal of 1.50 percent for the entire year," he added. "Our record level of net income in the second quarter is attributable to both our growth and a very strong residential mortgage banking environment. Given the economic volatility experienced during the quarter, we are pleased with this quarter's results and the year-to-date results."

Other results include:

•Fees from covered call options increased $2.9 million to $4.6 million. Additionally, gains on investment securities increased $115,000 to $1.4 million. Included in the second quarter gains on investment securities was $912,000 recognized on securities called as part of the company's written call option strategy, which was partially offset by a reduction to interest income from approximately $316,000 of accelerated premium amortization on the called mortgage backed securities.

•Nonperforming loans as a percentage of total loans, excluding covered loans, decreased to 0.48 percent from 0.51 percent and the allowance for loan losses as a percentage of total nonperforming loans, excluding covered loans, increased to 130 percent from 123 percent.

•Completed a public offering of 3,000,000 shares of common stock resulting in net proceeds of $152.8 million.

•Net interest income increased $3.8 million primarily as a result of earning assets growth, partially offset by a 5 basis point reduction in net interest margin.

•Acquisition and nonoperating charges increased $963,000 to $1.2 million for the second quarter.

"We expect our wealth management and mortgage banking business units to continue their strong performance from the second quarter," Wehmer said. "Loan growth at the end of the current quarter should provide added momentum heading into the next quarter with period-end loan balances exceeding the second quarter average by approximately $500 million.

"Additionally, in the third quarter of 2016, we expect to complete the previously announced acquisition of certain performing loans from an affiliate of GE Capital Franchise Finance. Also, the previously announced acquisition of First Community Financial Corporation located in Elgin, Illinois is expected to be completed by late third quarter or early fourth quarter of 2016."