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.
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