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Wintrust reports record third-quarter profit of $99.1 million

Wintrust operates Dyer Bank & Trust in Dyer.

Wintrust Bank turned a record third-quarter profit of $99.1 million.

The Rosemont-based bank, which has branches in Dyer, Lansing and across the south suburbs, made $1.69 per diluted share in the third quarter, a 22.5% increase compared to the second quarter and a 7.6% increase as compared to the third quarter of 2018.

Wintrust has pulled in a net income of $269.7 million over the first nine months of the year, or $4.60 per share.

"The company experienced strong balance sheet growth as total assets were $1.3 billion higher than the prior quarter and $4.8 billion higher than at the third quarter of 2018," President and CEO Edward J. Wehmer said. "The third quarter was characterized by strong balance sheet growth, decreased net interest margin, increased mortgage banking revenue, improved credit quality, and a continued focus to increase franchise value in our market area."

Deposits increased by $1.2 billion in the third quarter, or 17% on an annualized basis.

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"The company experienced significant growth in retail deposits demonstrating the value of our local brand and branch network," Wehmer said. "We are pleased to now have the largest deposit base in the Chicago market area among locally headquartered banks. Additionally, the company grew total loans by $406 million with growth diversified across various loan portfolios including the commercial real estate, commercial premium finance receivables, life insurance premium finance receivables and residential real estate portfolios. We remain aggressive in growing quality assets that meet our standards and will seek to fund that by expanding deposit market share and household penetration."

Loans were up by 6% on an annualized basis in the three-month period between July and September. The bank also boosted mortgage banking production revenue by $12.8 million to $1.4 billion in the third quarter, as compared to $1.2 billion in the second quarter. 

"The favorable increase in origination volumes was primarily a result of increased refinancing activity due to the declining interest rate environment," Wehmer said. "Additionally, the production margin expanded due to strategic efforts to enhance our origination channel mix. We believe that the mortgage rate outlook bodes well for mortgage origination demand in future quarters."

Wintrust continued to grow in the third quarter, opening two new branches in Chicago, completing its acquisition of STC Capital Bank and announcing it would buy Countryside Bank. Wehmer said it would continue to evaluate strategic acquisition.

“We have experienced significant franchise growth in 2019 and believe that our opportunities for both internal and external growth remain consistently strong," Wehmer said. "We plan to continue our steady and measured approach to achieve our main objectives of growing franchise value, increasing profitability, leveraging our expense infrastructure and continuing to increase shareholder value."

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Business Reporter

Joseph S. Pete is a Lisagor Award-winning business reporter who covers steel, industry, unions, the ports, retail, banking and more. The Indiana University grad has been with The Times since 2013 and blogs about craft beer, culture and the military.