Loan growth, especially on the commercial side, as well as interest rate trends and noninterest-income gains led to a double-digit increase in profits at Wintrust Financial in Rosemont, Ill.

Net income increased 40% from a year earlier to $82 million at the $28.5 billion-asset bank. Earnings per share totaled $1.40, beating the mean estimate of analysts tracked by FactSet Research Systems by 12 basis points.

Ed Wehmer, CEO of Wintrust Financial.
Keep it rolling
"We remain well positioned for expected rising rates in the future," Wintrust CEO Edward Wehmer says. "Our loan pipelines remain consistently strong."


Total loans increased 11% to $22 billion. Wintrust CEO Edward Wehmer highlighted "strong growth" in commercial lending, which rose 16% to $7.1 billion.

Net interest income increased 17% to $225 million, and the net interest margin expanded 18 basis points to 3.54%.

"We remain well positioned for expected rising rates in the future," Wehmer said in a news release Monday. "Our loan pipelines remain consistently strong."

Meanwhile, noninterest income increased 25% to $85.7 million. That included a 41% increase in mortgage banking revenue thanks to a positive fair value adjustment and the acquisition of Veterans First Mortgage in Salt Lake City.

Noninterest expenses increased 15.5% to $194.3 million and included increased costs in marketing and advertising expenses, professional fees and negative valuation adjustments and losses on other real estate owned properties.

Total deposits increased 7% to $23.3 billion.

Nonperforming loans totaled $89.7 million, compared with $79 million a year earlier, and represented about 0.41% of total loans. Net charge-offs increased to $6.7 million, from $1.6 million in the comparable period last year.

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