Wintrust Financial Corp. reported a record profit of $65.6 million in the third quarter, a 24 percent year-over-year increase.
The Rosemont-based bank has made $188.9 million so far this year, which is also 24 percent higher than during the first nine months of 2016.
“Wintrust reported record net income for the seventh consecutive quarter," Winstrust President and CEO Edward J. Wehmer said. "We are pleased with the third quarter results despite elevated payoffs and paydowns in our commercial and commercial real estate portfolios, lower revenues from our mortgage banking division and a reduction of our estimated FDIC indemnification liability by $4.9 million that was recorded in our second quarter of 2017."
Wintrust has locations in Dyer, Lansing, South Holland, Steger and Crete, and has a stated goal of becoming "Chicago's Bank."
"Our ability to generate new retail and commercial deposits was evidenced by a $562 million increase in such deposit balances in the third quarter, which allowed us to reduce our wholesale deposit balances by $272 million," Wehmer said. "Continued growth of non-interest bearing balances is a positive contribution to our net interest margin as well as a driver to our organic growth, helping offset the rise in our deposit costs during the quarter."
Wintrust earned $1.12 per share in the third quarter.
It boosted assets by $429 million and now has assets of $27.4 billion. The bank increased deposits by $289 million and loans by $210 million.
"Our loan pipelines remain consistently strong," Wehmer said. "New loan volumes were consistent with our expectations, but overall portfolio growth was muted by the elevated levels of payoffs and paydowns. 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 $11.6 million. We remain well positioned for expected rising rates in the future."
Wintrust said it's looking to grow both organically and through acquisitions, and that its prospects for growth were strong.
"Wintrust continues to take a steady and measured approach to achieving our main objectives of growing franchise value, increasing profitability, leveraging our expense infrastructure and increasing shareholder value," he said. As our growth engine continues its momentum, we expect continued organic growth in all areas of our business while still focusing on expense control. We remain well-positioned for a rising rate environment in the future, which, along with growth, will continue to grow net interest income."