The acquisition of a failed bank in July gave Wintrust Financial Corp.'s earnings a strong boost in the third quarter.
The $15.9 billion-asset company said late Tuesday that it earned $30.2 million in the quarter, up 156% from a year earlier and 50% from the second quarter. While the company did report higher net interest income, it was a bargain purchase gain of $27.4 million on the acquisition of First Chicago Bank & Trust in July from the Federal Deposit Insurance Corp. that largely drove the results. Such gains occur when comparing the loss-sharing agreement with the fair-market value of the assets.
The company's net interest income was $118.4 million, up 16% from a year earlier, as the company's average earning assets increased $1.2 billion from a year earlier. However, its net interest margin of 3.37% was down three basis points from the second quarter and 15 basis points from a year earlier.
The company reported earnings of 65 cents per share, beating consensus analysts' estimates of 54 cents per share. In a research note published Wednesday, Brad Milsaps, an analyst with Sandler O'Neill & Partners LP, said the company's core earnings were closer to 20 cents per share, nine cents short of his estimate.
Fee income totaled $67.2 million, up 22% from a year earlier. That figure includes the bargain purchase gain, but also includes higher wealth management figures, which were somewhat offset by lower mortgage banking revenues.
