Wintrust Financial Corp. in Lake Forest, Ill., on Wednesday reported earnings of $20.1 million for the third quarter, as interest income rose and its loan-loss provision fell dramatically.
Though income was down 37% from a year earlier, it rose 53% from the second quarter.
The year-over-year decline was primarily attributed to a $113.1 million bargain-purchase gain related to a premium finance business Wintrust bought in the third quarter of 2009.
The $14.1 billion-asset company reported net interest income of $103 million, up 18% from a year earlier. Its balance sheet has expanded largely through the acquisition of three failed banks in the past year.
Despite that growth, the net interest margin fell 21 basis points from the second quarter, to 3.22%.
Drops caused by slower repayments in its premium finance business and higher levels of liquidity were offset by improving rates on certificates of deposit.
Wintrust reported a loan-loss provision of $25.5 million for the quarter, down 39% from the second quarter and down 72% from a year earlier.