Wintrust outstandings up in first quarter
First National Bank, KeyBank also issue earnings reports
Financier Wintrust Specialty Finance reported its overall outstandings increased in the first quarter to $3.6 billion, up from $3.4 billion in Q4 2023.
Overall outstandings include capital leases, loans and equipment leases.
“Late loan growth in the first quarter creates positive revenue momentum moving forward as period-end loan balances exceeded averages,” Wintrust Chief Executive Timothy Crane said in an earnings statement Wednesday.
Crane added that Rosemont, Ill.-based Wintrust will acquire Michigan-based Macatawa Bank in the second quarter, after announcing the deal April 15. Neither party disclosed the value of the acquisition.
“The ability to expand with a high-quality bank with a strong low-cost core deposit base, excess liquidity, exceptional asset quality and a committed management team is a terrific fit for Wintrust,” he stated.
BY THE NUMBERS: Wintrust also reported for Q1:
- The commercial and industrial loan portfolio, which includes equipment finance, stood at $6.1 million, up from $5.9 million in Q1 2023;
- Net charge-offs were $21.7 million, up from $5.5 million the year prior;
- Allowance for credit losses increased to $427.5 million, up from $376.3 million YoY; and
- Recorded investment into commercial, industrial and other loans was $13.5 million.
KeyBank
Cleveland–based KeyBank reported its commercial lease financing division’s average balance in Q1 was $3.3 million, down 12.2% from $3.7 million in Q1 2023. It also reported for the quarter:
- The commercial loan portfolio totaled $76.4 million, down 9.1% from $83.1 million the year prior.
- Outstanding loans totaled $111 billion, down 7.6% from $119 billion in Q1 2023.
- Total loan charge-offs in the commercial and industrial portfolio totaled $62 million, from $35 million in Q1 2023. Recoveries in commercial and industrial loans remained flat YoY at $8 million.
- Net charge-offs were $81 million, up from $45 million in Q1 2023.
- Provision for credit loss in Q1 was $101 million, flat quarter over quarter but up 27% YoY.
First National Bank
Commercial and industrial loans at Pittsburgh-based First National Bank increased 3.1%, or $225.3 million YoY, in Q1.
”The increase in average commercial loans and leases was driven by organic growth across the footprint, particularly in the Pittsburgh, Charlotte, Cleveland and Raleigh markets,” the bank stated in an earnings release.
First National also reported:
- A $2 billion increase in all loans and leases, which it stated was driven by “organic origination activity.”
- Overall allowance for credit losses increased $2.9 million to $406.3 million, and total delinquency increased 4 basis points (bps) to 0.64%, up from 0.60% in Q1 2023. The earnings supplement noted that “both measures continue to remain at or near historically low levels.”
- Net charge-offs in Q1 were $12.8 million, down from $13.2 million in Q1 2023. First National Bank said that this ratio of credit losses to loans decreased 7 bps to 1.25%, which reflected growth of loans and charge-off activity.
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