Wintrust Financial Corp (NASDAQ: WTFC) stock fell 2.83% on July 15th, 2019 and continued its bearish momentum in the pre-market session falling over 3.8% on July 16th, 2019 (Source: Google finance) after the company posted lower than expected results for the second quarter of FY 19. WTFC has reported net income of $81.5 million for the second quarter of 2019, down from $89.1 million in the first quarter of 2019. The Company experienced strong balance sheet growth as total assets were $1.3 billion higher than the prior quarter-end and $4.2 billion higher than the second quarter of 2018.
Further, the company delivered significant loan growth in the second quarter as total loans grew by $1.1 billion and the yield on loans remained relatively flat to the prior quarter. The loan growth was diversified across various loan portfolios as the company experienced growth of $380 million of commercial premium finance receivables, $303 million of commercial real estate loans and $277 million of commercial loans. Total deposits increased by $714 million in the second quarter although the rate on interest-bearing deposits increased by eight basis points
Moreover, during the second quarter, WYFC has recorded $24.6 million of provision for credit losses and $22.3 million of net charge-offs, of which $15.2 million of provision for credit losses and $18.4 million of net charge-offs related to three credits. This contributed to a four basis point reduction in non-performing loans as a percent of total loans to 0.45%. The company posted additional provision expense during the second quarter in recognition of the significant loan growth as well as certain specific reserves on other non-performing loans.
WTFC in the second quarter of FY 19 has reported the adjusted earnings per share of $1.38, missing the analysts’ estimates for the adjusted earnings per share of $1.65, according to analysts surveyed by Zacks Investment Research. The company had reported the adjusted revenue of $364.4 million in the second quarter of FY 19, missing the analysts’ estimates for revenue of $365 million.
Additionally, for the second quarter of 2019, net interest income totaled $266.2 million, an increase of $4.2 million as compared to the first quarter of 2019 and an increase of $28.0 million as compared to the second quarter of 2018. Net interest margin was 3.62% (3.64% on a fully taxable-equivalent basis, non-GAAP) during the second quarter of 2019 compared to 3.70% (3.72% on a fully taxable-equivalent basis, non-GAAP) during the first quarter of 2019 and 3.61% (3.63% on a fully taxable-equivalent basis, non-GAAP) during the second quarter of 2018.
Meanwhile, on May 24, 2019, the company had completed the Oak Bank Acquisition and has acquired Oak Bank’s one banking location in Chicago, Illinois, as well as approximately $223.8 million in assets, including approximately $126.1 million in loans, and approximately $161.2 million in deposits.