WTFC - Wintrust Financial's Credit Costs And Rate Sensitivity To Hurt Earnings This Year
Wintrust Financial Corporation’s (WTFC) earnings dipped in the first quarter by 27% quarter-over-quarter to $1.04 per share. The earnings decline was largely attributable to a surge in provision expense. I’m expecting provision expense to remain elevated in the second quarter because the economic outlook has worsened since the end of the first quarter. Moreover, I’m expecting the net interest margin to compress further in the year ahead, which will pressurize earnings.
The highly rate-sensitive margin will see the full effect of the federal funds rate cuts in the second quarter. On the other