Wintrust Financial in Rosemont, Ill. reported higher second-quarter profit due to loan portfolio growth and higher mortgage banking revenues.
The $20.8 billion-asset company's net income rose 14% to $43.8 million, or 85 cents per share, from a year earlier. That was four cents higher than the average estimate of analysts polled by Bloomberg.
Net interest income increased 5% to $156.9 million as average loans increased by $1.9 billion. Total loans rose 12% to $15.7 billion. The net interest margin compressed by 21 basis points, to 3.41%.
Noninterest income rose 42% from the second quarter of 2014 to $77 million, largely because of a 51% increase in mortgage banking revenue. In a news release, Chief Executive Edward Wehmer cited higher origination volumes as a factor in the increase.
Noninterest expense grew 15% to $154.3 million. The increase was due to an 80% increase in advertising and marketing costs, as well as higher costs for salaries and employee benefits, occupancy fees and professional fees. Wintrust's efficiency ratio worsened by 28 points to 65.64%.