Shares of Wintrust Financial (WTFC) of Lake Forest, Ill. closed at $31.66 Thursday, returning 15% over the previous year.Income Statement Wintrust reported third-quarter net income applicable to common shareholders of $15.2 million, or 47 cents a share, increasing from $8.1 million, or 25 cents a share during the second quarter, but falling from $27.3 million, or $1.07 a share during the third quarter of 2009, when the company booked $113.1 million in gains on bargain purchases of failed banks from the FDIC. Third-quarter 2010 earnings also received a $6.6 million boost from gains on bargain purchases. The third-quarter provision for credit loan losses was $25.5 million, declining from $41.3 million the previous quarter and $91.2 million a year earlier. The provision in the third quarter exceeded net charge-offs of $21.4 million (excluding inherited balances from failed banks covered by FDIC loss-sharing agreements), so the bank was still building-up loan loss reserves. Wintrust's net interest margin declined to 3.22% during the third quarter from 3.43% in the second quarter and 3.25% in the third quarter of 2009. Following the earnings announcement, Peyton Green of Sterne Agee lowered his 2011 earnings estimate for Wintrust by 20 cents to $1.55 and his 2012 estimate by a quarter to $2.75, based on "a lower NIM assumption, more subdued balance sheet growth, and elevated credit costs." Balance Sheet Wintrust had $14.1 billion in total assets as of September 30, a 16% year-over-year increase reflecting the purchases of the failed Ravenswood Bank in August, Wheatland Bank and Lincoln Park Savings in April. Nonperforming assets - nonaccrual loans (excluding loan balances covered by the FDIC) and repossessed real estate -- totaled $211 million, or 1.50% of total assets as of September 30. The third-quarter net charge-off ratio -- excluding covered loans -- was 0.86% and reserves covered 1.19% of total loans as of September 30. Wintrust owes $250 million in TARP money. The company raised $221.8 million in common equity through a public offering completed in March. The Tier 1 leverage ratio was 10.0% and the total risk-based capital ratio was 14.1% as of September 30. Wintrust's tangible common equity ratio at the end of the third quarter was 5.94%, according to SNL Financial. Stock Ratios The stock trades for 1.2 times tangible book value according to SNL and 11.5 times the 2012 consensus earnings estimate of $2.76 a share. Analyst Ratings Two out of 11 analysts covering Wintrust rate the shares a buy, while the other nine - including Peyton Green - recommend investors hold the shares.
Select the service that is right for you!COMPARE ALL SERVICES
Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.
- Real Money + Doug Kass + 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV