Wintrust Financial Corporation (NASDAQ:WTFC) Q2 2019 Earnings Conference Call - Final Transcript

Jul 16, 2019 • 02:00 pm ET


Wintrust Financial Corporation (NASDAQ:WTFC) Q2 2019 Earnings Conference Call - Final Transcript


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Welcome to Wintrust Financial Corporation Second Quarter and Year-To-Date 2019 Earnings Conference Call. At this time, all participants are in a listen only mode. Following management's prepared remarks, we will host a question-and-answer session and our instructions will be given at that time. [Operator Instructions] Following a review of the results by Ed Wehmer, Chief Executive Officer and President; and David Dykstra, Senior Executive Vice President and Chief Operating Officer, there will be a formal question-and-answer session.

During the course of today's call, Wintrust's management may make statements that constitute projections, expectations, beliefs or similar forward-looking statements. Actual results could differ materially from the results anticipated or projected at any such forward-looking statements. The Company's forward-looking statement -- assumptions that could cause the actual results to differ materially from the information discussed during this call are detailed in our earnings press release and the Company's most recent Form 10-K and any subsequent filings on file with the SEC.

Also, our remarks will reference certain non-GAAP financial measures. Our earnings press release and slide presentation included reconciliation of each non-GAAP financial measure to the nearest comparable GAAP financial measure. As a reminder, this conference call is being recorded.

I will now turn the conference over to Edward Wehmer.

Edward Joseph Wehmer

Thank you very much. Welcome to our second quarter earnings call. With me, as always, are Dave Dykstra, Kate Boege, our General Counsel, and David Stoehr, our CFO. Now the same format, as usual, I'll give some general comments regarding our results, turn over to Dave Dykstra for more detail analysis of other income, other expenses and taxes, back to me for summary comments and thoughts about future, and we'll have time for questions.

You know, we've changed and streamlined the format and content of our earnings release. It's been reduced by 12 pages. Hopefully we'll find it more informative. If you have any ideas or as to additional improvements or information, you'd like to see, please feel free to give us a call or a note with your thoughts.

Now onto our results for the quarter. The quarter can be basically summarized as follows. Strong balance sheet growth, though again back-end loaded, reasonable core earnings, higher credit costs primarily related to three specific credits, an additional MSR write-down to the rate environment. And notwithstanding the two negatives, I think it was a pretty reasonable quarter. How was the play, Mrs. Lincoln, I guess, we could say based on where the stock is going today.

On the earning side. Net income was $81.4 million, down 9% from the second quarter '19 in the second quarter of -- first quarter of '19, second quarter of '18. Year-to-date earnings of $170 million, basically even with what we had last year. Diluted EPS standpoint, basically the same numbers. If you could take net income out of pre MSR adjustment basis, year-to-date we're up 8% to $180 million from a $167 million. Diluted EPS the same, up 8% from -- to $3.08 from $2.84, notwithstanding the MSR adjustments.