By Katherine Hamilton
Wintrust Financial shares fell after it said it incurred losses on investment securities and mortgage banking that dragged down its net interest margin for the fourth quarter.
The financial services company's stock declined 11% to $121.49 on Tuesday after the market closed. It is up 38% over the past 12 months.
The company's net interest margin remained flat year-over-year at around 3.5% due to a decline in mortgage banking revenue and an increase in net losses from investment securities, the company said.
Mortgage banking revenue included a net negative fair value mark of $1.5 million in the fourth quarter compared with $6.9 million in the third quarter.
Wintrust incurred $2.8 million in net losses on investment securities compared with $3.2 million in net gains during the previous quarter. That was the result of unrealized losses on equity investment securities with a readily determinable fair value, Wintrust said.
Total operating expenses also rose due to the acquisition of Macatawa Bank, which added $15.8 million in costs.
Write to Katherine Hamilton at katherine.hamilton@wsj.com
(END) Dow Jones Newswires
January 21, 2025 18:04 ET (23:04 GMT)
Copyright (c) 2025 Dow Jones & Company, Inc.
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