Fourth-quarter profits at Wintrust Financial in Rosemont, Ill., climbed 54% to $54.6 million from a year earlier, helped largely by acquisitions and increases in mortgage banking and other fee income.
The $25 billion-asset Wintrust bought the $172 million-asset First Community Financial in November, after closing on the acquisitions of Generations Bancorp and $554 million of loans from GE Capital Franchise Finance earlier in the year.
CEO Ed Wehmer in a news release cited the fourth-quarter boost provided by the addition of First Community in Elgin, Ill., but he said other positive contributors were “continued deposit growth, strong performance from our mortgage banking activities [and] stable credit quality metrics.”
Noninterest income was $85.3 million, up 31%. Mortgage banking income was up 52% to $35.5 million.
Net interest income increased 14% to $190.8 million. Total loans — excluding loans held for sale and covered loans — rose 15% to $19.7 billion. That growth was spurred by the 27% growth in commercial loans. Home equity loans and other consumer loans were down 8% and 17%, respectively.
The net interest margin fell 5 basis points to 3.21%.
Wintrust’s quarterly provision for credit losses fell 19%, to $7.4 million.
Noninterest expenses rose 8% to $180.37 million.
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Corrected January 19, 2017 at 3:49PM: An earlier version of this story overstated the percentage increase in profits and understated the percentage increase in noninterest income. An incorrect figure was given for the quarterly provision for loan losses, also.