Wintrust Financial Corporation (NASDAQ:WTFC) Q2 2019 Earnings Conference Call - Final Transcript
Jul 16, 2019 • 02:00 pm ET
Edward Joseph Wehmer
I mentioned earlier.
We expect the margin to be under pressure in 2019, but to our expected growth, deposit rate moderation remaining -- retaining a strict underwriting standards of pricing the parameters, we expect to hold our own in this regard. If rates do drop, we move expeditiously to cut our deposit costs. CDEC transaction is working as anticipated and is providing us with a nice source of low cost funding. Net overhead ratios is performing as expected. We expect that number to approach the desired goals as evidenced by numbers calculated when using period end assets.
Mortgage market remains strong. We believe we experienced the worst of the MSR adjustments, knock on wood. We may even get some upside benefits going forward. We continue to cut our costs related to our mortgage business. Credit metrics overall remain pretty good. We do not believe that the second quarter represents a trend, but as we all know, credit cannot be this good forever. We performed at the percentage of our peers thought. Our charge-offs have been a percentage of our peers. We'll continue to look through the portfolio for any and all cracks and exit relationships where set cracks are found. We always remember that our first losses are best loss if we don't try to kick the can down the road.
Wealth management to continue its slow and steady climb. In the quarter we closed on our acquisition of Rush Oak and its subsidiary, Oak Bank, announced the acquisition of STC Corporation, which has approximately $280 million in assets. We expect this transaction to close in quarter three. This deal contain significant cost out opportunities, both the branch overlap and normal operating efficiencies. We anticipate consolidating three out of the five current STC branches, while absorbing many of their employees in our system filling in through normal turnover.
Acquisition opportunities remain plentiful. Pricing for banks and our asset range remains reasonable. You can be ensured of our consistent conservative approach to deals in all categories of business. In short, we're proud of what we've built over the last 27 years and approach the rest of 2019 with confidence we're able to achieve our goal of double-digit earnings growth and growth in tangible book value. You can be assured our best efforts in that and we appreciate your support.
Now we're open for questions.