Wintrust Financial shares fall, as higher deposit costs weigh on results

Wintrust Financial Corp.
WTFC,
+2.11%
on Wednesday reported second-quarter net-interest income and margins that missed estimates, and the bank, like others, grappled with higher deposit costs that have come with attracting more customer dollars. The company reported net income of $154.8 million, or $2.38 a share, compared with $94.5 million, or $1.49 a share, in the same quarter last year. Revenue was $560.6 million, compared with $440.7 million in the prior-year quarter. Net interest income was $447.5 million, with net interest margins of 3.64%. Analysts polled by FactSet expected earnings per share of $2.38 on revenue of $557 million, with net interest margin of 3.66% and net interest income of $449 million. Shares fell 5.9% after hours. Total deposits grew 12.4%. Chief Executive Timothy Crane noted “continued acceleration in deposit pricing,” but said that repricing of premium finance receivables portfolios helped offset those costs, and that net interest income would increase in the third quarter.