Wintrust Financial Corp. (NASDAQ: WTFC) announced its second-quarter financial results on Wednesday, revealing net-interest income and margins that fell short of expectations. The bank faced challenges related to higher deposit costs resulting from its increased customer base.
Strong Growth in Net Income
The company reported a net income of $154.8 million, or $2.38 per share, showing significant growth compared to $94.5 million, or $1.49 per share, in the same quarter last year. This robust performance can be attributed to various factors, including a substantial increase in revenue.
Revenue and Net Interest Income
Total revenue for the quarter was $560.6 million, a notable increase from $440.7 million in the prior-year quarter. Net interest income reached $447.5 million, slightly below analysts’ expectations. Net interest margins stood at 3.64%, reflecting the competitive market environment.
Deposit Growth and Higher Costs
Wintrust Financial Corp. experienced a remarkable growth of 12.4% in total deposits during the quarter. However, this expansion came at the expense of higher deposit costs, which impacted the bank’s net interest income.
Future Outlook
Despite the challenges faced during the second quarter, Chief Executive Timothy Crane remains optimistic about the future. He acknowledged the ongoing acceleration in deposit pricing but mentioned that the repricing of premium finance receivables portfolios helped mitigate these costs. Crane expects net interest income to improve in the third quarter.
Despite missing estimates, Wintrust Financial Corp. continues to prioritize its commitment to delivering strong financial results and providing excellent service to its customers.
