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
Executive
David L. Stoehr

a little bit with one year LIBOR, two out there because we have such a big book of life portfolio that's tied to that. So if you can get that to flatten out a little bit and come back up, that would be fine. But I mean, there's a little bit of CDs repricing. But we also have premium finance loans that are still going on at higher rates than they were in the past on the commercial side. So there's a little bit of a mixed issue here. Our new loans actually came on higher than our historic portfolio rate this quarter. So you have -- but you have paydowns and other things. So the mix is really an important aspect that's out there. So we'll just have to see what comes to in the mix side of the equation.

But I think there'll be some funding pressure out there in the fourth quarter with a little bit of CD repricings -- third quarter, but it isn't material enough that we don't think we're going to grow our net interest income. We really -- given the average that we have in the pipeline -- that average ahead of -- and the period -- head start we have and the pipeline that we have, we're very comfortable that net interest income is going to grow.

Analyst
Jon Arfstrom

Okay. The tail end of the quarter weighted loan growth, what would you attribute that to? Why did it happen later in the quarter?

Executive
Edward Joseph Wehmer

It always seems the last three or four quarters have been like that. We've always started with a head start. I don't know, whether we empty the boat at the end of the quarter or we fill it up at the beginning of the quarter, but there was actually some spill over this time, the stuff that we expected to close didn't close. That's closing in the first quarter. So we shall see August is always a slow month due to vacations and then July should be good, August would be kind of slow, September should be very good. It just seems to be in a pattern we've fallen into. There's really no reason other than the fact we're happy to have them.

Executive
David L. Stoehr

Yeah, we -- the thing I focus on Jon is the pipelines, and the pipelines have been very consistent and as Ed mentioned in his earlier remarks, our closing rate -- our pull-through rate has been fairly consistent too. So I look at the pipeline over a period of time, you can't always judge -- you can't make a customer close when you want to close, but over time, those pull-through rates have been steady. So as long as the pipeline stays strong, we're pretty -- confident that we're going to continue to have good loan growth.

Executive
Edward Joseph Wehmer

And the pipeline relate just to our commercial and -- commercial and commercial real estate loans. The premium finance loans always jump at the end of a quarter, especially in December