WTFC - Earnings call transcript Q1 2024 | Wintrust Financial Corporation

Due to licensing restrictions, you must log in to view earnings call transcripts.

Operator

Welcome to Wintrust Financial Corporation's First Quarter 2024 Earnings Conference Call. A review of the results will be made by Tim Crane, President and Chief Executive Officer; David Dykstra, Vice Chairman and Chief Operating Officer; and Richard Murphy, Vice Chairman and Chief Lending Officer.

As part of their review, the presenters may make reference to both the earnings press release and the earnings release presentation.

Following their presentations, there will be a formal question-and-answer session.

During the course of today's call, Wintrust management may make statements that constitute projections, expectations, beliefs or similar forward-looking statements. materially forward-looking results statements. differ in or could such any results from anticipated the projected Actual

discussed are The measures. non-GAAP the release XX-K. differ information Also, actual forward-looking and results this company's assumptions most may to materially that in the our from recent earnings remarks in financial our detailed could company's cause during press call Form the certain reference

GAAP a to press earnings release comparable measure. Our the of measure non-GAAP financial release include and each reconciliation presentation nearest financial earnings

As conference Tim being turn a call I recorded. is reminder, this over conference would now Crane. the Mr. to

Timothy Crane

Thank Chief you, First Financial joining Quarter everybody, our Officer; Vice our Operating our morning Chief thank Financial us With Boege, General Call. Counsel. you Dykstra, me this Rich Officer; Chief Murphy, Lateef. for our Good and Dave morning, Stoehr, Earnings are Officer; Chairman Wintrust and for Lending Kate Chairman the and Dave and Vice

to the will back information and on an some high-level additional performance. to and some of agenda, Murphy add Rich be I'll speak share terms credit In I'll will Dave financial color highlights. Dykstra results forward wrap regarding few of by Bank. some up on X past remarks followed this announcement the from a our high-level outlook pending thoughts topics: Monday on a with acquisition going Macatawa summary

items quarter, to of further these -- a of Dave will the announced and fund. partnership previously to amounts we of the and just our include from other gain a advisory items. FDIC relative of over related net business the the reported For income guarantee the results related record onetime $XXX speak handful million. for deposit a The expense XXX(k) replenishment to

line fourth strong expectations. with loan a positive atypical been flat. was quarter quarter all of growth the The with of loans by grew net down the for slightly net a and mostly income the both billion and number across would and $XXX major if these businesses. days balanced just items, margin interest essentially X.XX%. $X was deposits and Overall, have bit of was million from of our over adjusted the nicely We our of in Net in interest quarter,

growth franchise. Our our to grow deposit reflects attract continued our and deposits strong ability

however, see $XXX the We in the part attribute and their funds average in of During seasonal but clients projects rate liquid did decline deposits to a we non-interest-bearing also using in million. to quarter, deposit invest flows, to approximately higher to this options.

credit low expect to continue performance over the few experienced the We from levels last normalize very years. to

these the charge-offs proactively hear However, you'll of portfolio. address we reflect our prior resolution our allowance. healthy degree period challenged continue also our continue Rich, from large to maintain reserve losses, NPLs low, we as remain a And in and to activity. Despite modest a credits to credit

in well come ratios. Overall, what to excluding I'll Rich. portfolios a the core of to over resulted this coverage the differentiate which to up impacted announcement. turn quarter, we're low our finance strong a insurance at capital compare was I fourth and acquisition it loans, primarily of may speak again, Market book loss tangible believe our a that, to terms for But improved seeing the With earnings would will record slightly value. is that these many solid Afterward, Dave improved competitors. relative to in tangible the and allowance wrap I'll and we us back and value fluctuations, increases healthy quarter despite book our during X.XX%. level quarter highlight from our rate

David Stoehr

Tim. thanks right, All

$X.X loans of basis. XX% by our the guidance. grew first to First, annualized in high approximately sheet billion to pleased we're growth with growth quarter, at the respect balance report on loan Total or the solid an end

deposit corresponding $X.X detail more in annualized Rich the the discuss quarter, will bit. We Murphy an broad-based quarter in was basis. increase in the recorded over on X% this billion a prior which is of increase and growth just during loans Importantly, a

composition, non-interest-bearing averaging cash than to some additional in year. end some the outstanding as deposit non-interest-bearing a business seasonality. the rather decline were the quarter of and quarter as as of on in in And line, deposit in in mentioned, utilizing several of their fourth million of the they $XXX although relative quarters, accounts to of hundred thus decline far the we're stable couple non-interest-bearing And second deposits to total a As more -- the non-interest-bearing of dollars approximately encouraged accounts deposits. The than the average interest-bearing are non-interest-bearing declined average on accounts last movement quarter approximately follow the first Tim that represented first XX% by drawing result quarter, million deposits, was March.

So a that hopeful the quarter dip quarter. in we're bit second first rebounds the

strong been total aspects approximately slightly other capital for growth. successful quarter was Wintrust to it the and As history. customers has our for of the $X.X regulatory by in grew its assets franchise, gaining of primary the objective the of our market ratios improved sheet balance Overall, new results, our which and another despite billion, growth throughout

team Our in and us unique position differentiated exceptionable serve to and Chicago well. markets continue service business and model, Milwaukee

from reiterate standpoint only quarter from quarter income, net As record the standpoint the revenues. income categories, not the quarterly I'm to net was statement first quarterly first, the of also to of but pleased a

for cost the approximately was our quarter the mix in on caused earning to quarter, assets by current rate at in interest rate X-basis-point the of end strong deposits the days growth. These expected mentioned, environment, non-interest-bearing pressure and in a fourth first expect higher The XXXX loan margin incremental growth the we increase fluctuating approximately Based interest shift essentially income attracting of of adjusted if As in or a fund deposits run was margin. quarter lower X.XX% deposits and the margin the of remained in of funding net stronger cost loan relatively level of dynamics of non-interest-bearing offset of a to a the ended steady in average interest net where resulted interest the primarily an the and Tim first the we of loan X.X% the result net second the dynamics decline X.X%. in quarter deposits the interest and slight the first the around number by the net the decline the the quarter, be a levels margin range incremental interest and an within the growth, for of quarter. elevated with

which to the relationships high-quality but net margin the short deposit another expect would way, an in market if growth to acceptable that likely a bit growth it at pressure returns. we share provide the require of trade-off. quarter nice happy take As loan term additional will a in the represent add I pressure relationships acceptable short run. mentioned, the bit, means will advantage and exceptional we're marginally of higher us gains costs, fund market high-quality in loans that conditions second Said margin and will interest These in current even and new with income

credit year in million in metrics to $XX.X for for quarter in Wintrust talk of the narrower loan was a provision from to down the credit slightly provision the recorded forecasted Turning just $XX in $XX.X forecasted ago of conditions, credit BAA from of and provision provision down losses. prior Rich in quarter portfolio provision quarter. about expense prior million quarter spreads. primarily relative first in of the lower macroeconomic primarily million the recorded characteristics credit a first the quarter a The will expense improvement bit. and the result losses

sale approximately first compensation quarter, primary disclosed mentioned, sections, of the Tim net and as total Division, in net is expense and non-interest and other approximately gain generated sold to of increase income million a X included related offsetting news first non-interest million. The gain, Planning release million was The $XX.X $XX.X expense the for First, on the in the million non-interest quarter. the was other up gain company roughly the we $XX assets was which prior to its income Regarding of of reason which a totaled compared $XXX.X factors: in which during as when comprised Retirement income the gross $XXX,XXX. Advisors the quarter,

the assets had a mortgage-related quarter had held 'XX, the the -- quarter million mortgage of unfavorable in other mortgage Second, net approximately change our favorable million $XX.X fourth banking revenue. $X.X that generated revenue certain we from we of of in and that adjustment rights prior servicing whereas million company value, resulting hold more adjustments $XX valuation fair approximately mortgage $X.X valuation positive net swing at Relative million. to a in

pretax million of a by entertainment assessments provided than experienced offset company solid just small of by take million volumes FDIC, and in revenues improved quarterly growth, of aggregate first interest both quarter the advertising remaining $X.X seasonal level relatively the of a the to a in relatively but loan for estate Division. In approximately reason unusual of record owned record aggregate, and in production additional failures XXXX. totaled expense that of decline negative, other of in $X.X summary, was a in net tables on also quarter, are the less There assets. prevalent basis level Retirement $XX.X real in the a changes the expense, income, to variety of the offset related of small higher of as the million non-interest recorded non-interest the in not in other We margins. the less income and on million to margin, revenue good and to decline slightly smaller loss changes due net shown our variances gain release, were decline if a origination aforementioned than a and and good expenses were a compensation which under you sale a continued these higher deposit variety down A earlier to the for nonperforming the estimates result stable in categories. to special expense quarter, level sale categories imposed earnings The expenses other reduction levels and and all expenses updated other Non-interest from due categories than occurred the resulted very expenses prior quarterly by in marketing $XXX,XXX. in increase low prior The $X.X quarter. The first $XX.X expense less Planning FDIC growth, the quarter a net increases including Advisors primary pay income the million recorded $XX.X manner. Non-interest approximately million the $XXX million. an bank were the was such in X of positive

So and with that, I'll Murphy Rich turn I'll my discuss credit. to to conclude comments, it over

Richard Murphy

Dave. Thanks

both Dave performance continued a from in credit very perspectives. quarter Tim of As number to first noted, solid and the be

$XXX the by Core quality million, driven The growth of billion. X $X.X quarter As of driven our dislocation commercial loan detailed the up on factors. leasing, deck, loans, markets. from was excluding within primarily was number for by competitive the resulting largely Slide in banking were opportunities, growth a landscape

portfolio we addition, from saw line credit hires coupled $XXX year In warehouse last growth million resulting made strategic from with our recovering in mortgage market. of

saw continue second believe leasing group will real be for our number commercial growth the draws we XXXX billion also experienced estate past construction reasons. that X% portfolio loan loans than a QX growth greater commercial the and had growth growth premium in for another quarters highest of quarter. on largely of or existing a our in annualized. We Loan finally totaled strong for potentially our quarter We Historically, the second quarter. finance from good solid X portfolio $X.X and in resulting very to

balances quarter grow coming $X during second these just of this saw and the billion, quarter. similar XXXX, During growth by expect we we over

highest continue industry. hard our finance premium we in portfolio. and premiums, a yielding These from loans from are We insurance within consolidation see are for opportunities the market among the to benefiting

C&I C&I demand will very addition, teams pressure In see our dropped XX% core continued in pipelines have line as year-over-year the which Offsetting finally, affected higher XX% to be this to from borrowing costs on And utilization, significant negatively leasing market. usage. solid. remain continue growth

higher maintain borrowers cause borrowing borrowing expansion CRE our and new have affect while continued We addition, purchases. In equipment we and of demand. costs pipelines summary, slowed discipline. business reconsider to as new CRE to costs continue our our higher anticipate economics projects, will be optimistic to opportunities, see rates we continue continue to credit loans ability In loan have grow to at to the a about that of number attractive

an noted in earlier, total be growth QX. excess loan As strong for the of QX very should

upper to the virtually as $X In guidance. From total growth loans loan metrics. the addition, a million. loans can as end across unchanged seen on up of at performance anticipate by we was This total would credit Non-performing portfolio. at XX in a be XXXX points, a detailed number quality be perspective, our percentage see XX, strong of of could we Slide credit continue basis

commercial decrease quarter, NPLs portfolio, we a the finance in segment while Transportation loans aside, uptick resulting non-performing portfolio. increased saw for slight that core an in an cancellations of had As premium the in the from

to down loan of tighter come closely stabilize We and yields to as continue segment underwriting. monitor and charges the for structures the losses. for believe our quarter XX $XX.X enhanced from to continue late or and Charge-offs the reserved offset were situation result portfolio number this were quarter QX. should of this Higher from or a points, XX QX. It's this in largely note million basis million up in credit $XX.X that charge-offs points basis for important and

saw our we Finally, loans. stable as levels Slide on mention special substandard and in detailed XX,

to to comprise estate highly of and on category. total our calls, exposure office lease earnings we commercial and As X/X on focused affect borrowing roughly CRE to pressure valuations, noted real costs occupancy last few in portfolio. particularly which rates continue the our continue in loans, our be Higher

During we increase quarter, the NPLs X.XX% from saw up first $X to million. a in X.XX%, CRE modest

On is billion Currently, billion exposure. our XX.X% at $X.X only medical our portfolio office total this of provide XX% steady Of or portfolio we portfolio. the or owner-occupied. of exposure, office $X.X on and continue of office CRE XX, enhanced X.X% Slide loan our total CRE detail to remains

only The office portfolio size loan average million. the in the of was $X.X

and on stay We very or have X CRE performed portfolio, with which above loans regularly are reviews of We only and $XX our we our million borrowers. engaged non-medical portfolio only owner-occupied. X

will resulted As Half of Roughly some for additional CRE quarter a extension during pledge following: renewal their of qualify or $X.X rates. short-term calls, end off of at The the covered all our be prevailing of loan collateral. at loans clearly loans updates prevailing require dive regularly the maturing reviewed analysis, to prior be team XX% mentioned the loans require deep of paid these our loans paydown will XXXX. This over or period credit which every additional renewing will anticipated between of on which these of CRE of and analysis rates. which this will XX% million, include fourth the attention, in are XX% a could remaining a now

on identify the rates best believe comments challenges We with and is identify reserved concludes or weaknesses borrowers to it my market to in good credit, have versus lease attention immune and We found continue of reasonably of effects And to but outcomes to support quarters reductions. Again, generally rates, situated were of our that proactively the to I'll back appropriately work results the our in continue very forces to back rising portfolio tests turn these deem the by the outcomes. that projected prior outcomes our continue correlated. borrowers is the Tim. we weather shape, portfolio possible check to loans conducted during behind for additional their to actual not and providing tightly and the principal require ahead. That speaking, loans enhancements, including portfolio

Timothy Crane

Bank, continue Well, of as forecasted range, the above to positioned the growth current see announcement the add and the earlier you we've growth parts, in days, second net income pre-provision, regarding from about future higher projection couple shared from at in lot which the months. To over quarters. To our environment high Dave revenue of that to we've If favorable to were the of also past right is the and of we advantage transaction half, Macatawa is could well end also solid possible, Rich, and interest us. With to highlights consensus, net in heard, of loan our while the believe some the levels, experienced the number coming comments that current the businesses. net that occur, franchise and or financial margin will of moving there we high half the than can we're context, many for pressure the is for we quarter. particularly that document. our end the interest if second relatively the income to in believe to trade-off some the performance a of net are speaking we respect interest with you growth expect tell, year that looks And current strong come first both diverse enjoyed you take to

So my summary is succinct.

We about this excited are very opportunity.

negative non-performing been Rapids They the As the past Michigan limited serves is a which XX rate environment, we've loans $X.X short a rate. MSA quality, mentioned with greater XX%, for in quite their population stayed prior the virtually loan-to-deposit translates Their billion years calls which limited. ratio attractive on and of net we X very States. attractive targets which population in has low-cost a Grand have They higher and are United charge-offs have a book. loans. is securities deposits, of this reasons, West for no market, deploy pristine Macatawa to would several substantially credit current portfolio, deposit fixed the top at excess in

a has transaction. excited leadership Macatawa about the Lastly, committed team

for not can our point, this moving take say pleased when a we not expansion good and good Northern tell to Indiana And profile any, Michigan, and While this that can we is are business West and with questions. at ideal physical this some fit. I'm forward. At pause cultural this this footprint. Michigan financially such if exaggerating in do I have an I'll point, platform I in today, have have very banks a we many are there we and you not West

Operator

question first of [Operator RBC Markets. Instructions] of from Jon Capital Our Arfstrom line the comes

Jon Arfstrom

income the touch those interest balances And the But some net the you levels some and dynamics. trends pricing stabilize? for money I expect guys thanks Tim, on could margin, touch can less those products. non-interest-bearing of you the and and that then some markets on the be on quarter of help that if confidence of margin is comments can out stuff burning second on just the in third I'm the in curious and And understand quarter? issue but savings of an

Timothy Crane

of will subsiding Yes. that, the half With up, seen we've I or DDA back of Jon. hopeful the deposit obviously on that that the deposit some quarter with the is match less marginal out more cost some market market of first the X% mean, rates in that loan came so we're or we in expected. in and But promotional that come of growth. and have balances average quarter a competition kind than growth stick, the the pleased we just higher back first to little And for around you're it the the -- were it growth. were in

Jon Arfstrom

Fair right. you maybe All in for there. then, unpack bit enough. a And your Can Dave, of mortgage expectations you. terms

You guys see expectations QX. have you volumes. talked higher kind typically, But slightly you pretty QX about there? strong origination of and What do

David Stoehr

was the hockey January's higher just tick it not quarter, I and than is it's fourth it's January like the and color than February higher you up. And higher been low. applications But March just finished was stick was a pretty I February. a give we where were been up. -- can Well, December guess, than It's

for normal demand. letters although but like, than rates buying in recently which are and somewhat share volumes application in of a some it so got sort April, asking been are there pent-up pent-up out the more there. expecting the prequalification help. And there's increase indicates the people spring March. our lot are of to We've But And season that we of hasn't the helpful, demand is to far similar

is to shortage though So a sort the buying pick season we up supply. even of there spring of expect do

be the quarter despite would than so we're second that the the now. expect higher And rates quarter, we to first seeing better

I quarter, only X we're guess. weeks into second optimistic, the but we're Now

Jon Arfstrom

are right, with back. I there look questions, you. I'll All others helpful. it. That's I'm appreciate step but numbers good. Thank guys. sure

Operator

Chris Our KBW. of next question comes from McGratty the line of

Christopher McGratty

maybe a you. question Dave, for

margins? Or maybe consensus get do we think margin trending okay. I the range the expectations what a remarks, talked curve, going of pressure if about in previously on PPNR forward But still said kind little are you've to the I your look growth good? You for prepared below for be is of the guided it you bit of guess your that? kind that is purposes. numbers

David Stoehr

I good. No, think it's so

is dramatically. And have of We're And think if and fairly seen I we've a now the it's if is of to any growth. expensive think rate far because us a top going we here that above this just the impacts short I grow -- the neutral little in couple quarter, bigger we're The you fund believe, consensus like on we've deposits cuts, guidance bounce just really more Tim our that, range. strong the quarter. said, a second and that bit sort pressure the the just -- to simply we mid-single-digit than term DDA. don't back seen were we're be so hold then loan to seeing in market of end in

any pressure but there. said, ] I just the XX dramatically the if that So parts, lots X to they're points. basis upon of But XX [ we're a now, little the X.X% of or based as moving other bit or Fed around thinking by right we range wouldn't sort of moves change expect

Christopher McGratty

of And just single of to loan is you're mid- the kind is talking about? the guidance that growth sort upper-

David Stoehr

think of the quarter second range. that quarter and premium as high the will are said, a the full. at We for Rich finance It's end think, Well, think I guidance. pipelines we're for above that we the year, strong be

the we'll quarter. quarter actually in stronger quarter first we we a the have So than growth second did in think for loans

Christopher McGratty

the of it's of Could bank extension. or ranges, quality the about us terms you think of I buying I X% help get your sheet. accretion and with the you're In balance deal, the market expectations

extract to know the and probably it? lot In a of be to finessing a do, balance that size, they're terms have liquidity. I loaned some has given that sheet of you under reasonable of might range from able what is

Timothy Crane

expense faster said, I excluding obviously, Chris, in think I what we've numbers. working and is The excited This us. It of really with those great early, is households, mean, example, But which for it's we're integration and grows going a we're lots the we're year stick market here. Yes, Chicago, accretive, than about to is fit X. on this. terrific. opportunity for There's

David Stoehr

loan liquidity excess higher a the they asset have, talking rate on put to really Day utilize the can and we're And think growth class. we about, almost strong X we given

Christopher McGratty

to the conservative a wanted back we're Is as being you're given on little wouldn't that optimistic feels analysts Just come comment how you It to there like bias prior guess, an that the to PPNR. numbers? the missing I on are suggest growth. there's upward something,

Timothy Crane

growth what Chris, if I to good adding deposit that's some a us growth. quarter causing of billion next that And time. cautious $X we're have growth. names. and think news we -- for is did just the do about have for environment we going is we're to good going like story to with We're look a upward lot us have long pressure. good to quarter of plus a it They'll be this But again fund

Operator

Our line next James. Raymond from of David question the of Long comes

David Long

where from lot are diets just or to on ability restricted banks competing of now? also them. risk-weighted appetite may in rest there XXXX? results. Is record that in veteran an Does marketing impact your your started And banks peer specifically, to then other investment off bankers hire increase be throughout lead other get grow organizations their is their about I'm of business with you to going to with some for appetite an asset in a projects? they the Or revenue? right or year you And this spending the So incremental investing thinking coming of

Unknown Executive

and we chime for Tim comment. in, X-year I'm we too. Well, will a stick technology pretty plan But of do have projects kind in sure and our investments I'll we'll -- with that. a

so many We resources. have

too, want to expenses, but we the business. in invest control continue to So

-- continue think don't would the important. grow is and is we deposits raising change to Marketing to I those franchise that much. want So

and stick bit, third sponsorships probably second because with the and it we'll seasonality you know, although the So a as the like. in our the pops of quarters little plan, normal up our

produce when them. So you profits I good think to you to But well, to and in If mortgage folks going people, they value to looking growth, for can record recently, attempt happy did for have always that's doesn't case. mean And expenses always they become and franchise just always people. good available. as people. we'd spend the But the have look it control we're comes people we're some space we to because with quality warehouse good that add

Timothy Crane

as think things I'd add stand right Yes, mean, we've momentum don't I now. much. great I got

the think I forward here. we're happy reasonably So outlook with

David Long

as to still it. go then reductions in I right Got seeing this And of price pricing? Any just some there to now Or everything you're want point? anything start the north? actually can follow-up, to deposits. is a back at Are lower where you -- categories deposit sort turning

Timothy Crane

to and Yes, Dave, to market it's in costs. down, we pretty their watching in some some hearing with been active that grow we're down take trend an We've we're terms aggressively. interesting deposit is that are trying of the movement regard, watching some rate competitor primarily kind really rates institutions intent to no question because people carefully. in because trying our But of not

Operator

Casey Our line Haire Jefferies. the next of from of comes question

Casey Haire

Another question on the funding strategy.

very but is forward strong this, of expect what growth first then CDs CDs the And today? a Sorry if do missed how I to after going cost drive quarter? deposit marginal you much

Timothy Crane

lot. mean of promotional the terms have Well, kind I Casey, answers success X XX percentage, to or having money question. we're mix, adding months a the stuff in rates. the or up have in CD see people most both. to we're X% new market But exact range. And running kind what good CD getting is X I and on the in of CDs but other, like market, type there, both names, the XX X% market And low traction that happens we're and type versus in and we waiting shortened to that offers of we're which to category, too. don't

in say X% CDs money I'd in the range. so are marginal marginal X% range, And markets the

Casey Haire

NII And actually you're Slide you then showing simulations, positive. -- XX, on

that You're showing I that's I just which out think -- tied sensitive. I'm in does liability asset-sensitive August. lag assume finance. so when wondering the plays premium -- and and to in commercial

color some that simulation So that I'm on there? dynamic? just showing you provide wondering, guys you are just Very interesting can

David Stoehr

the think it Well, I pretty is reason said, for we're down in time point. we But Yes. scenario, Those that deposit basis point we that to has are reduce relatively neutral. be rates much not able dynamic deposits. we'll our like rate main think basis

basis money [indiscernible] effect we reduce those XX it's to was expect XX. points, market rate, on So would

like that we upside, is beta prices going go the slower up. On not raise immediately our the little just to if deposit rates a we're

beta beta talked the you'd the assets you And on on greater the like repricing on downside then and a up have about. so a would have lesser the and you

relatively neutral, the you is sort on as The it's see, assumptions. that deposit the but So beta dynamic. can creating of what's betas

Operator

next Our Terry McEvoy from Inc. Stephens the line comes question of of

Terence McEvoy

you the in the a I mentioned the million. know bit provide the was it if could, market loan commercial first some gains. Maybe you of $XXX rest quarter, warehouse, more mortgage color, share on growth was

industries, expand what's banks, are growth? banks? And larger these smaller maybe behind Just that

Richard Murphy

Yes. Terry, it's interesting.

a we've -- market. about bit think I little past you talked in happened the the in Chicago what's

private We like MB number our consolidation First and competitors have Midwest are tremendous all meaningful and a and seen of gone.

Chicago, not that amount take a good out larger of where And a situations in banks also those are of connection of presence communication have a with a time. some now. the seeing just don't not a are But lot customers and seeing dislocation. tremendous immediately. real opportunities of a right we so that they're much happen dislocation. Things opportunities -- feeling as just result of of there's lot They just We're just

within bigger. community opportunities. have a X So opportunities, small bank nice a seeing we more just and we're tend be thought lot opportunities just, lot really frankly, ago, we kind a years then upmarket. And of really that of again, They seeing lot We to see. footprint, would our we're see bit a good of little never would just medium-sized

So the very out, as competitive much has Tim the side. favor dynamics, on pointed lending now are in right our

Terence McEvoy

with up correlation like production, production past, salary then an big Could you loan talk year. expenses and there the the production below that expenses increase If and strong had maintained in follow-up, impact the benefit be tends to overall? line looked consensus. about throughout in maybe talked you a -- And as came quarters looking will how Because about picks a the in they in we that expenses. or and but loan QX

Timothy Crane

A in we But in to little second and trend to insurance generally up efficient. third are tend earlier, And Dave's expenses, little very the bit related to a our portfolios, the bit. marketing. point quarter

And incremental volume, a impact, while expense has an it not is so big driver.

would would think you not loan I trajectory So strong modest growth. changes expect kind with of changes,

Operator

question comes Nathan next Sandler. Our Piper of line the Race from of

Nathan Race

several years in of I have kind trends had for credit about you guys terms excellent you talk guys, of trajectory now. You for mean maybe the charge-offs. obviously credit

how guys of curious you higher just range normalized going for charge-off kind kind you think longer a forward about of So a in environment?

David Stoehr

quarters XX-basis-point we over chime So a of less, or But basis or can we're be right? couple number time. it's before for and think we low there a range loss years, to sort XX reasonable But think we of in this point, haven't in we so Rich rate. a generally of quarter normalize then sort points the basis things chime you're in XX the I'll or range write in. keep will that XX, the to But to a in less thinking think of point singles. XX generally in XX if in. the teens that I And been basis we a

talked think reserved over that we But ones. but year, is up about, normal. And the the for We but fully recently, larger in this quarter. we as quarters. I in had course of those trend think XX it haven't little of So a some we XX, as most seen prior of

clearing them So will of be just out proactive. kind

Richard Murphy

I I there's no, keep necessarily a other would in you lot linear, it's as mind with agree is other just I of Dave would the everything see thing said. banks, one-offs. not And with Yes, think

So things just happen.

So but over is periodically, you what you that I look exactly take Dave think higher, could lot range. if to have but something you'll see time, too, lower, true think I XX-basis-point XX- around said a a

Nathan Race

quarter. office grew portfolio in the And then good I noticed CRE a amount the

of well? of geographies both of what what the you're opportunities terms type in of in in type seeing office as curious and Just also terms

Richard Murphy

get talked good seen little tenanted. is case, well. of owner-occupied, than these appetite other seen, as structure you calls, terms there we've good have they're as catch. can were In situations where But imagine, very this but some for can we medical pricing Yes, you equity office really now, opportunities office. as contribution out overall there we out in about Right have on very well there just

But there don't that our that be it, So that those and we're still have out think not to at -- and look think when certainly not market we we we have opportunities, you grow actively that and room, exposure see portfolio. here some availability. is great to trying it's we're that overweighted in out category, in we

Timothy Crane

looking important sidelines, sit be others that getting of us think consistency sort matters but we're opportunities. mean, and it's I we're office clients, to in And the the we on not deals, terrific as market. our for for to

Richard Murphy

to generally opportunity. but this our more a not Midwest in portfolio, a exclusively, this to case, geography From -- was it Midwestern-based speaking, your be question, tends focused,

Nathan Race

then the earlier accretive your last be like that for And -- forward. it this announcement of should to I if acquisition In one, could, just going one maybe guys capital Tim. are light you ratios week, seems

curious hear the the fill kind next for over Rapids look just up potentially. to towards particularly appetite or Grand in So as area the so, acquisitions additional of you maybe year to

Timothy Crane

acquisitions. at we Number reasonably think we're one, good

we'll So we're same at bank we confident is moving from the to going the direction because place do several a time. and We're to And start integrated bank. terrific right that not this this quickly. good a get try really

conversations for most So and makes but little we're the continuing here, sense us we're at what for probably having to on the going bit sidelines a look forward.

Operator

Ben question of next Gerlinger comes the Citi. from of Our line

Benjamin Gerlinger

high you I a you just touch year. good aspect bit it's of growth growth. a know mean, be surely year that the XX% closer do healthy you this on This to up probably footprint for to this base organically? just like major have to why think with or this honest, like single Western you're the deal could be -- taking likely seems did It what your I in risk area. if of Michigan I guys give why growth be Like at liquidity, of kind now of off to a eye little what [indiscernible] a a have presence but potentially the for could Just background. ball kind probably conservative going digits really now? end is not us just and deal deposits

Timothy Crane

we this don't you clients We say, I of we Well, area think a the month business in West opened of in think just in Midwest we're strategy ago. care both think right do taking Crown we than location to but and the off material eye footprint take not and have new is do grow Point have now, in our We good as to part and Michigan. the Indiana Northern ball. our a a less

this if we time. wait for was, a are right the West to fit something at leadership market. And committed the right It's was like along, The a the growth us. Macatawa question We great bank. It's franchise just opportunities so terrific different come Michigan you for And point, well-run a this in is do good. feel think team. at

Benjamin Gerlinger

bank, X plus 'XX? like synergies equals largely it's like the be accretion and a had expense you mixing X again balance look very it of other there efficient X perspective, X? like to in Or forma just for the then is the just Is And sheets. kind pro than more than said

Timothy Crane

think think to they both to clients we'll there's be -- think capabilities that overlap I new add market some can and likely type activity. productive them too. of in the I there's Well, existing Dave will mean this, opportunities. in that and But we terms bring

a digital upside. So in there's of or treasury whether a lot lending expertise lot and here of services areas, services certain or I banking it's think synergy

David Stoehr

cost things you a sort costs And of and insurance costs buying fashion those lower. costs DP in we get to are synergies. where drive should some be like able We our always capacity and leverage can probably

will cost some plan branches. close so There's no be And to any that saves. We grow closing But plan to in we aren't there area. branches. market

public they're company. a So

those some cetera. company We separate audit, will So public of need won't a away. et costs go

savings -- a -- grow we've So a and not there. is like with there franchise cost this our a market partnership entire with great are get great in life But is banks. a this done a

Operator

D.A. of Jeff the of Our line from next Rulis question Davidson. comes

Jeff Rulis

follow-up Just a of credit questions. couple

On talked we've that the pickup nonperforming increase. a in timing anything specific but that if in lot the in wanted loans see related, there's the anything just credit to normalization, drove segment, about segment P&C

Richard Murphy

No.

that ultimately, as material mine. cancellations a segment of no a ticked those is tends bit And little a I of news that's transportation Freight are Revenues have causes on in result, more just think, obviously, As for rates to But issue to stress up. down. mentioned, be don't concern I anybody. right it borrowers. now, down

we I to forward deals of as think structuring on overall They're sure working for fees on tighter. efficient still those we a on our collection. us. make it's very the that a teams bit and are trade rates working level go late again, But we those, little that given earn are good

Timothy Crane

taken listed with a the nonperforming. But go collateral, on we've in nonperforming they And as charge-off. when would Jeff, status, I into chime thing, already short we're there is Yes. if other they're

to we're the to to from So generally come us premium just waiting for carrier. that return

come to the we've from pike really for just back the waiting on not indication short if the carriers. down money loss, it's collateral, the come larger losses taken because already that an So of we're we're

Jeff Rulis

the the C&I you question on a then seeing or know similar QX, commonalities for a in And category? I Understood. lot bucket, bucket, any recall QX of vintage or mentioned front. just side, I what are reserved charge-off looking was on C&I business reserved you what kind charged don't was what within for. C&I you the came at off? just the but But in

Richard Murphy

seeing, one-off in largely that more is the exposure area C&I it in just group of just core P&C think but it there, definitely I that only would the kind would have stress. our more point situation. type we of there franchise is having huge again, But exposure of transportation. that some was don't In that a area portfolio, not recognized. in we a we're one had be If an but amount the category, We side, Yes. I to,

of bit as little and but exposure. that miscellaneous just reserved relates focused franchise the was of some we CRE a C&I and So on charge-offs, largely a exposure bit little to it existing

Jeff Rulis

of a on there and there. Advisory a roughly see a is to we the on is need Just And if an wash? Retirement trying Business, Or impact expenses? housekeeping the sale go-forward fees adjustment that

Timothy Crane

as think a going The fees modest. very partner, I have modest, little to it's but a lose we we bit your don't also and numbers. and It's go generally some move expenses, down it

Jeff Rulis

And maybe one. one in last squeeze just I'll

-- here? barring to -- the in you we we see probably an you feel those? On running into an pause got hold but hedges, largely about guess, a good here pause you're if on extended I a conversation, maturities or think of wanted there, like shape X-month Do just active

Timothy Crane

as talk mean, we Yes. are the active. when be No, lot. down. for I being. But kind of and either rate more environment for rates people right a longer higher kind up rates just seeing be some or talk watching we certainly of more now it And we'll get the or about we're could rates uncertain, active to as time about these to we opposed of is roll off, closer

we right happy think with are I we're now. So where

Operator

Our question of next Shaw Barclays. line comes the of from Jared

Jared David Shaw

line wanted seems for Just terms of a That the deal the closing. like timing. on great circle to in time back

after that of you difficult. there'll it Do on regulators recently, banks for will seem be optimistic more pretty coming opportunity for integrate the outlook commentaries there. do out forward You you you be the deals that this? an more going are like feel sounds With deals to

Timothy Crane

a we terms Macatawa think is We community-oriented hope Well, same of high-quality profile. their so. in bank. We're

can think go now. process, right our And rapidly. this part no we that We But very this the about we'll market through to a you, fit respect have for and hope And and with again, exactly tell so continue opportunities. look right talked on good we'll the but other as I we hesitation Macatawa. is gets earlier, conversations approved to

Jared David Shaw

mark what's portfolio? early And credit on sort of the the projected

David Stoehr

their Tim they've had conservative earlier, could mentioned public and credit expect disclosures. from we And that, their years, you Well, filings. haven't at public that, wouldn't from recoveries that few just for they look very much are looking public at well-run as I net you a disclosed but a can function. tell company, a

Jared David Shaw

as do If price deal. the had you would the market coming bank, the a you you're be we going full growth deposits? with wholesale thinking loan those And really to short-term excess growth then all from come highlighted until from funding core at match funds see should we adding that Or on? look excess fund fix funding accelerated loan

David Stoehr

funding accelerated not that a sometimes don't have activities. gathering you than more our No. on never because in loan in match we is your core plan. is even a sometimes funding term. pillar long long-term use and wholesale manner We it you to wholesale the wholesale fund we with consumer rely that you much short But perfectly, long deposit continue to a it the grow right? But backfill can backfill to growth have in if growth the funding, But plan GAAP plan. and term it's to our the commercial standard term if funding short-term It's

Jared David Shaw

for commercial finally the are spot seeing then me, what's better for loans lending. the market? you on rates the just now talked in new C&I opportunity Great. Where spread -- And you about

Richard Murphy

$XXX customers very well-structured range. really where a high-quality, structural bringing north broad deals that treasury smaller opportunities deals attractive more as of in issues. seeing for -- the you still often. It's these that, we're the talked generally group. is you because a opportunities getting where get rates little well-secured, million -- But are mean you a I on bit and in we there's could about, be year pretty don't still lot of job, But our really speaking, these you're can very and

eager out the saying we're that but incredibly win they're going I'm lowest we're that we work certainly want, a we're there. opportunities be bankers to to when deal necessarily, it's to price hard our these if not it. to are going win So --

Operator

closing to remarks. now back conference would turn like for to I the Tim Crane Sir?

Timothy Crane

talked only days last Thank but you we've transaction. not feedback and for have you, over that about this of couple Thank morning. Lateef, for today, your insights the as for all the of participated and you,

and both pending excited in hard opportunities work we're tell always, as the we'll can about the acquisition. you think And I about Chicago to deliver.

you up. We'll for morning. it this So time your wrap thank

Operator

This for conference Thank you participating. concludes today's call.

disconnect. now may You

Wintrust Financial (WTFC) 18 Apr 242024 Q1 Earnings call transcript