Wintrust Financial Corp. (WTFC) Wednesday reported a profit for the fourth quarter, compared to loss last year when it incurred substantially higher preferred stock dividends. Net interest income rose on increased average earning assets, while provision for loan losses declined in the reporting period.
For the fourth quarter, Wintrust Financial's net income was $18.2 million or $0.41 per share, compared to a loss of $2.0 million or loss of $0.06 per share a year ago.
On average, 11 analysts polled by Thomson Reuters expected earnings of $0.37 per share for the quarter. Analysts' estimates typically exclude special items.
Preferred stock dividends and discount accretion totaled $1.0 million in the quarter and $16.2 million last year. Excluding the item, net income for the quarter was $19.2 million compared with $14.2 million last year.
The company also reported continued improvement in credit quality, and continued favorable shifting in the mix of the deposit funding base. Non-performing loan inflows during the fourth quarter declined to $25 million, the lowest in the past eight quarters.
Provision for loan losses for the quarter decreased to $18.8 million from $28.8 million last year.
Net revenue for the quarter rose 8 percent to $169.6 million from $157.1 million last year. Nine Street analysts on consensus estimated revenues of $163.4 million.
Net interest income rose 11 percent to $124.6 million reflecting an increase of $1.4 billion in average earning assets. Average loans increased by $885.1 million, comprising a $408.6 million increase in commercial and industrial loans. Net interest margin dropped marginally to 3.45 percent from 3.46 percent last year.
Non-interest income for the quarter increased 1 percent to $44.9 million. Non-interest expense for the quarter increased 12 percent to $118.8 million, caused mainly by the addition of employees from the various acquisitions.
Total deposits as of December 31, 2011 were $12.3 billion, an increase of $1.5 billion from December 31, 2010.
Total loans, including loans held for sale but excluding covered loans, were $10.8 billion as of December 31, 2011, an increase of $871 million over December 31, 2010.
Total non-performing loans decreased to $120.1 million at the end of the year from $142.1 million a year ago, and down from $134 million at the end of the third quarter.
Going forward, the company expects 2012 to be a very active year industry-wide for acquisition opportunities for both FDIC-assisted and unassisted banks as well as individual branches and lines of business.
WTFC closed Wednesday's regular trade at $31.53, up $0.16 or 0.51%, on the Nasdaq. Over the past year, the stock traded in a range of $24.30 - $37.34.
For comments and feedback: editorial@rttnews.com