Wintrust Financial in Rosemont, Ill., reported strong momentum from mortgage growth and acquisitions.
The $24.4 billion-asset company reported a $50 million profit in the second quarter, up 2% from the first quarter. Earnings per share of 90 cents beat the average estimate of analysts by four cents. Year-over-year comparisons are difficult in the case of Wintrust because it has made several acquisitions in the last 12 months.
The bank attributed part of its linked-quarter growth to mortgage banking revenue, which rose 70% to $36.8 million thanks to higher origination volumes.
Meanwhile, its overall loans increased 4.2% from the first quarter to $18.2 billion due to growth in various categories including commercial real estate, other business loans and premium-finance receivables. Total deposits increased 4.3% to $20 billion.
Wintrust’s M&A spree added to costs, too. Its acquisition and non-operating charges rose by $963,000 to $1.2 million from the first quarter to the second quarter.
After last year's second quarter, the company purchased a trio of banks: the $343 million-asset Community Financial Shares, the $488 million-asset Suburban Illinois Bancorp and the $106 million-asset North Bank. Wintrust bought the $124 million-asset Generations Bancorp in March of this year.
Wintrust expects to close on its purchase of First Community Financial late in the third or early in the fourth quarter, and its acquisition of loans from an affiliate of GE Capital Franchise Finance is due to be completed during the third quarter, the company said in a news release Tuesday.
Wintrust will use its $153 million in proceeds from a stock sale during the second quarter to support these and future acquisitions.