Wintrust reported a record profit for the 10th straight quarter, boosting earnings by 38 percent in the second quarter.
The Rosemont-based bank, which has branches in Dyer, Lansing and across the south suburbs, made $89.6 million, or $1.53 per diluted share, up from $82 million at the same. Wintrust has made $171.6 million through the first six months of the year, a 39 percent increase over 2017.
"These results were driven by strong loan and deposit growth and an increased net interest margin as we continue to benefit from rising interest rates. The second quarter of 2018 was also characterized by good credit quality metrics and increased mortgage banking revenue," President and CEO Edward Wehmer said.
"We experienced strong loan growth within the commercial portfolio and premium finance receivables portfolios during the period," he continued. "The commercial real estate portfolio remained relatively flat during the second quarter as elevated payoffs and paydowns offset new loan growth within the portfolio. We continue to take a measured approach in evaluating new commercial real estate loan opportunities due to supply and demand issues in the market place, pricing competition and easing of underwriting standards by some competitors."
The bank grew assets by $1 billion in the last quarter, deposits by $1.1 billion and loans by $548 million.
"Our loan pipelines improved to the highest levels since the second quarter of 2017," Wehmer said. "The increased loan volume, continued improvement in net interest margin from rising interest rates and an additional day in the second quarter compared to the first quarter helped net interest income increase by $13.1 million in the second quarter of 2018. Deposit growth was strong in the second quarter of 2018 as deposits increased $1.1 billion and exceeded $24 billion as of the end of the quarter. Our deposit growth was primarily the result of growth in money market accounts and retail certificate of deposit accounts as active marketing campaigns began to take effect. Five branches added during the second quarter of 2018 contributed $134 million of retail deposit balances to this growth."
Mortgage banking revenue totaled $39.8 million in the second quarter, an increase of $8.9 million as compared to the first quarter.
"Mortgage loan origination volumes in the second quarter of 2018 increased to $1.1 billion from $779 million in the first quarter of 2018 as a result of higher purchase originations during the traditional spring purchase market and a full quarter's impact from the Veterans First acquisition," Wehmer said. "The increase in mortgage banking revenue from higher originations was tempered by lower production margins and smaller positive fair market value adjustment to mortgage servicing rights as interest rates increased less during the second quarter of 2018 when compared to the first quarter of 2018. Home purchases activity represented 80 percent of the volume for the second quarter of 2018 compared to 73% in the first quarter of 2018. Our mortgage pipeline remains relatively strong. With respect to production margin, we anticipate that it will decline slightly in the third quarter with stabilization in future periods. We continue to focus on efficiencies in our delivery channels and operating costs in our mortgage banking area."
Wintrust expects more growth in the second half of the year, especially because of loan growth near the end of the second quarter.