Wintrust Financial Reports Growth in Leasing Business During Q3/20
OCT 22, 2020 - 7:35 am
In its Q3/20 earnings report, Wintrust Financial reported that its leasing business grew during the quarter, with its portfolio of assets, including capital leases, loans and equipment on operating leases, increasing by $20.3 million to $2 billion at the end of the quarter.
In addition, Wintrust reported record net income of $107.3 million, or $1.67 per diluted common share, for Q3/20, an increase in diluted earnings per common share of 391% compared with Q2/20 and a decrease of 1% compared with Q3/19. The company recorded net income of $191.8 million for the first nine months of 2020 compared with net income of $269.7 million for the same period of 2019.
Highlights of Q3/20 Compared with Q2/20
Total assets increased by $192 million.
Total loans increased by $733 million.
Total deposits increased by $193 million.
Net interest income decreased by $7.2 million primarily due to lower Paycheck Protection Program loan fee accretion as a result of changes to the estimated timing of loan forgiveness. The company recognized $17.4 million of PPP loan fee accretion in Q3/20 compared with $25.1 million in the prior quarter. As of Sept. 30, 2020, the company had approximately $49.3 million of PPP loan fees that have yet to be recognized in income.
The loans to deposits ratio ended Q3/20 at 89.7% compared with 88.1% as of the prior quarter end. Excluding PPP loans, the loans to deposits ratio ended Q3/20 at 80.2%.
Outstanding COVID-19 related loan modifications for customers totaled approximately $413 million, or 1.4% of total loans, excluding PPP loans, as of Sept. 30, 2020, compared with $1.7 billion, or 6.2%, as of June 30, 2020.
Provision for credit losses totaled $25 million in Q3/20 compared with $135.1 million in Q2/20.
Wintrust recorded net charge-offs of $9.3 million in Q3/20, of which $6.4 million were reserves on individually assessed loans as of the prior quarter end, which compared with net charge-offs of $15.4 million in Q2/20. Net charge-offs as a percentage of average total loans totaled 12 basis points in Q3/20 on an annualized basis compared with 20 basis points on an annualized basis in Q2/20.
The allowance for credit losses on Wintrust’s core loan portfolio is approximately 1.88% of the outstanding balance as of Sept. 30, 2020, up from 1.85% as of the prior quarter end.
“I remain very proud of the extraordinary effort put forth by our employees to support our customers and our communities amid the challenges of COVID-19,” Edward J. Wehmer, founder and CEO of Wintrust Financial, said.
Is it too late to heal the cancer created by mishandled early payoffs? Early payoffs are living entities in the organization of equipment finance. They show dynamic patterns based on the interaction of the hosts: vendors, brokers and lenders. Observing... read more
The top five players in the Monitor 101+ ranking — a captive, two bank affiliates and two independents — commanded 30% of the total market share and contributed 20.4% of the collective total new business volume of the Monitor 101+... read more