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

Jul 16, 2019 • 02:00 pm ET

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

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Q & A
Operator
Operator

Thank you, sir. [Operator Instructions] And our first question will come from Jon Arfstrom with RBC Capital Markets. Your line is now open.

Analyst
Jon Arfstrom

Thanks. Good afternoon.

Executive
Edward Joseph Wehmer

Hi, Jon.

Analyst
Jon Arfstrom

We talk a little bit about the margin that you referenced, margin pressure more than once. And I understand your comments on the ability to outgrow that pressure with some of the loan growth that you've seen, but curious what kind of magnitude you're thinking. And then the other part of this is just your ability to start to lower deposit costs. Do you have to wait for the Fed or can you start to do some of that now?

Executive
David L. Stoehr

The overall competitive costs are moderating a bit and we're seeing that and we're reacting to that, but the consumer understands what the Fed does and that's about it, and many of our index rates like LIBOR and like -- actually react before them. So it's hard to cut rate too much now, especially during the growth mode. We've always taken advantage what the market gives us, Jon. And right now, it's given us very good core growth. Our reputational growth is terrific. All that marketing expense we put out pays very well for us, pays off very well for us as shown by the growth that we have.

If we can leverage our overhead structure and have to pay a little bit more on deposits to cover, we've always been asset-driven to fund the loans, that's a perfect situation for us, because we've always been asset-driven. And we can have assets to cover, we can gain more and more market share and work on our way to be Chicago's bank. But I would say that you can't do any material adjustment until the Fed moves one way or the other, and when they do, we'll move very quickly, because everybody else will too. So this is a good environment for us as we've been able to take advantage of the disruption in the market plus our reputation. Our marketing going forward as Chicago's bank. We feel that this is an opportunity we should take advantage of, but we're not afraid to cut rates. We always look at them, and -- but any big cut won't happen until the Fed moves, because people wouldn't understand it, the market won't move.

Analyst
Jon Arfstrom

Okay. So is the message, similar level of margin pressure until the Fed does move?

Executive
Edward Joseph Wehmer

That's a good question. I don't believe if the Fed didn't move and there was no change in markets, I don't think there would be a lot of pressure on the deposit side. On the asset side, we've been able to held pretty steady and we held for 4.74% for the last two quarters, but it all depends on what goes on underneath the Fed, what expectations are on the LIBOR and what have you. Dave, you have a comment on this?

Executive
David L. Stoehr

Well, some of it's just going to be, where mix of businesses and really what happens