Wintrust Financial Corp. reported a record profit of $64.9 million in the second quarter, a 30 percent increase over the $58.4 million it made during the second quarter of 2016.
The Rosemont-based bank has made $123.3 million so far this year, a 24 percent jump over the first six months of 2016.
"These results reflected the continued strength of the internal growth engine at Wintrust as we grew assets organically by over $1 billion while still controlling operating expenses with our net overhead ratio dropping to 1.44 percent," resident and Chief Executive Officer Edward J. Wehmer said. "The second quarter of 2017 was also characterized by our strong deposit growth, increased net interest margin, improved credit quality metrics and strength in our mortgage banking business."
Wintrust, which has a stated goal of becoming “Chicago’s bank,” has locations in Dyer, Lansing, South Holland, Steger and Crete.
It made $1.11 per share in the second quarter, up from $1 a share in the first quarter.
Total loans increased by $812 million as compared to the previous quarter.
“We experienced strong loan growth among our various loan categories, including the commercial, commercial real-estate and premium finance receivables portfolios. Excluding covered loans and mortgage loans held-for-sale, we grew our loan portfolio by $812 million during the second quarter," Wehmer said. "The increased loan volume and continued improvement in net interest margin from recent interest rate increases during the period helped net interest income increase by $11.8 million. Our loan pipelines remain consistently strong and we remain well positioned for expected rising rates in the future."
Mortgage banking revenue shot up to $35.9 million, up from $14 million the previous quarter.
"The mortgage banking business unit's contribution to increased net income during the second quarter primarily resulted from origination volumes growing to $1.1 billion from $722 million in the previous quarter as a result of higher purchase originations during the traditional spring purchase market," Wehmer said. "Purchases represented 84 percent of volume for the second quarter of 2017. Our mortgage pipeline remains strong. We continue to look for opportunities to further enhance the mortgage banking business both organically and through acquisitions."
Wintrust grew its assets by $1.2 billion last quarter, and now has $26.9 billion in assets.
“Our growth engine continued into the second quarter of 2017 with strong momentum. Loan growth at the end of the second quarter should add to momentum into the third quarter as period-end loan balances, excluding covered loans and mortgage loans held-for-sale, exceeded the second quarter average balances by approximately $478 million," Wehmer said.