Wintrust Financial Corp Q1 2023 Earnings Call Transcript

The following is excerpted from the question-and-answer section of the transcript.

Question: Broderick Dyer Preston - UBS Investment Bank, Research Division - Analyst : Wanted to just follow-up on Nate's line of questioning on the Rothschild. Just on the expenses, you said 7% to 8%, but some of that's transitional. I guess could you help us think about as you -- once those transitional costs are out of the run rate, what do you think the go-forward run rate specifically to Rothschild acquisition would be? REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. APRIL 20, 2023 / 3:00PM, WTFC.OQ - Q1 2023 Wintrust Financial Corp Earnings Call

Question: Broderick Dyer Preston - UBS Investment Bank, Research Division - Analyst : Got it. Okay. And then I just wanted to circle back on the swaps. I appreciate the detail on Slide 22. So I can kind of try to work through that myself. But I just want to ask if you could clarify for us like how much of the -- in the 3.70% margin at quarter end, how much are the swaps negatively impacting that just in terms of basis points?

Question: Broderick Dyer Preston - UBS Investment Bank, Research Division - Analyst : Yes. Yes, that was the number I was looking for. And then I just want to ask just one last one or 2, just on the NIBs. You guys aren't unique in this sense that the NIBs have been pressured. But I do just want to ask, do you have a good sense for like when the tide kind of could stem there? Like are you kind of close to, which you would think would be the level that your customers need to keep from an operational account perspective? Or are you expecting to see more headwinds on noninterest-bearing going forward?

Question: Broderick Dyer Preston - UBS Investment Bank, Research Division - Analyst : Got it. Okay. Yes, I understand. That's tough. And then the last one I had was just, Rich, I wanted to just follow up on the detail you gave on the CRE analysis, particularly as it relates to the 25% that are anticipated to either be paid off or require a short-term extension at prevailing rates. So I think the prevailing rates part is the key, right? Like obviously, you think that in the short term, these borrowers could support a higher rate. But it sounds like -- just the way you phrased it that you don't necessarily think these are credits that you would want on balance sheet from a longer-term extension standpoint. So could you help us think through what's going on with that 25%? Or you say, yes, you could afford it, but we don't necessarily think we want to keep you?

Question: Broderick Dyer Preston - UBS Investment Bank, Research Division - Analyst : Got it. So it's really that last bucket, the 15% that require additional attention, where you're spending more of your time?