Financial Performance - Wintrust Financial Corporation reported record net income of $823.8 million, or $11.40 per diluted common share, for the year ended December 31, 2025, representing a 19% increase from $695.0 million, or $10.31 per diluted common share, in 2024[2]. - For the fourth quarter of 2025, net income was $223.0 million, or $3.15 per diluted common share, compared to $216.3 million, or $2.78 per diluted common share, in the third quarter of 2025[3]. - Net income for Q4 2025 was $223.02 million, a 3% increase from Q3 2025 and a 20% increase from Q4 2024[41]. - Net income reached $223,024 thousand, reflecting a 3.6% increase compared to $216,254 thousand in the previous quarter[44]. - Basic net income per common share for the three months ended December 31, 2025, was $3.21, compared to $2.82 in the previous quarter, representing a 13.8% increase[49]. - Net income for the three months ended December 31, 2025, was $223,024,000, an increase from $216,254,000 in the previous quarter, representing a growth of 0.35%[95]. - The company reported a diluted net income per common share of $3.15 for the three months ended December 31, 2025, compared to $2.78 in the previous quarter, a growth of 13.3%[95]. Loan and Deposit Growth - Total loans increased by $1.0 billion, or 8% annualized, and total deposits also increased by $1.0 billion, or 7% annualized, in the fourth quarter of 2025[5]. - Total loans reached $53.11 billion, an 8% increase from the previous year[41]. - Total deposits grew to $57.72 billion, reflecting a 7% year-over-year increase[41]. - Total loans rose to $53,105,101 thousand, up 2.0% from $52,063,482 thousand in the prior quarter[44]. - Total deposits increased to $57,717,191 thousand, a growth of 1.8% from $56,711,381 thousand in the previous quarter[44]. - Total deposits rose to $57,717,191,000, marking a 7% growth from the previous quarter[53]. Interest Income and Margin - Net interest income for the fourth quarter of 2025 reached $583.9 million, an increase of $16.9 million from $567.0 million in the third quarter of 2025, driven by net interest margin improvement[5]. - The net interest margin improved to 3.52% in the fourth quarter of 2025, up four basis points from the previous quarter[5]. - Net interest income (GAAP) for Q4 2025 was $583,874 thousand, up from $567,010 thousand in Q3 2025, reflecting a growth of 2.3%[59]. - Total interest income for the three months ended December 31, 2025, was $956.3 million, an increase from $920.9 million in the previous quarter, representing a 3.8% growth[49]. - The taxable-equivalent net interest margin was 3.54% for Q4 2025, up from 3.50% in Q3 2025[93]. Non-Interest Income and Expenses - Non-interest income totaled $130.4 million in the fourth quarter of 2025, a slight decrease from $130.8 million in the third quarter of 2025[25]. - Total non-interest expense for Q4 2025 was $384,453,000, an increase of $4,425,000 or 1% compared to Q3 2025, and an increase of $15,914,000 or 4% compared to Q4 2024[90]. - Total Non-Interest Income for Q4 2025 was $130,390, a decrease of $437 or 0% compared to Q3 2025, but an increase of $16,939 or 15% compared to Q4 2024[84]. - Total non-interest expense for the year ended December 31, 2025, was $1,512,032,000, an increase of $109,308,000 or 8% compared to 2024[90]. Credit Quality and Losses - Provision for credit losses totaled $27.6 million in the fourth quarter of 2025, compared to $21.8 million in the third quarter of 2025[5]. - Non-performing loans increased to $185.8 million, comprising 0.35% of total loans as of December 31, 2025, compared to 0.31% in the previous quarter[6]. - The allowance for credit losses was $460,465 thousand, up from $454,586 thousand in the prior quarter[44]. - The total charge-offs for the three months ended December 31, 2025, amounted to $27,076 thousand, a decrease from $28,846 thousand in the previous quarter[74]. - The allowance for loan losses as a percentage of loans at period end was 0.71%, slightly down from 0.74% in the previous quarter[75]. Market and Economic Conditions - Economic conditions, including housing prices and job market trends, are critical factors that may impact the company's loan portfolio performance[99]. - The company is facing challenges in the commercial real estate market, particularly in the Chicago metropolitan area, southern Wisconsin, and west Michigan, which may lead to increased credit loss allowances[100]. - The interest rate environment, including prolonged low rates or rising rates, could materially adversely affect the company's net interest income and profitability[100]. - Competitive pressures in the financial services sector may impact the pricing of the company's loan and deposit products, potentially resulting in a loss of market share[100]. Strategic Initiatives - The company plans to continue its growth strategies, including potential acquisitions of banks and expansion of branch offices[97]. - Wintrust operates 16 community bank subsidiaries across multiple states, enhancing its market presence in the Midwest[96]. - The company’s non-bank businesses include insurance funding and mortgage origination, contributing to diversified revenue streams[98].

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Core Viewpoint - Wintrust Financial Corporation is a resilient player in the financial services sector, showing growth despite competition from other regional banks [1] Group 1: Company Performance - Wintrust Financial has seen fluctuations in its consensus price target over the past year, initially set at $160, adjusted to $162.5, and settling at $157.91 a year ago, indicating a generally positive outlook from analysts [2] - The company's Q3 2025 earnings report showed earnings per share of $3.06, surpassing the Zacks Consensus Estimate of $2.63 and improving from $2.47 per share in the same quarter the previous year, highlighting its growth trajectory [4] Group 2: Analyst Perspectives - Piper Sandler has set a more conservative price target of $121 for Wintrust Financial, reflecting concerns about the company's ability to exceed earnings expectations, despite its robust revenue growth and strong asset quality [3] - Analysts are advising investors to stay alert for updates as Wintrust prepares to release its fourth-quarter and full-year 2025 earnings results, as various factors could influence the consensus price target for WTFC [5]

Core Viewpoint - Wintrust Financial (WTFC) is expected to report quarterly earnings of $2.93 per share, an 11.4% increase year-over-year, with revenues projected at $699.7 million, reflecting a 9.6% increase compared to the same period last year [1] Earnings Projections - Analysts have maintained the consensus EPS estimate for the quarter over the last 30 days, indicating stability in their assessments [1] - Revisions to earnings projections are crucial for predicting investor behavior and stock price performance [2] Key Financial Metrics - The estimated 'Efficiency Ratio' is projected at 54.7%, down from 57.5% a year ago [4] - 'Net Interest Margin' is expected to remain stable at 3.5% compared to the previous year [4] - 'Average balance - Total earning assets' is forecasted to reach $65.52 billion, up from $59.85 billion in the same quarter last year [4] Additional Financial Indicators - 'Tier 1 leverage ratio' is projected to increase to 9.9%, compared to 9.4% in the same quarter last year [5] - 'Total Non-Interest Income' is expected to be $122.14 million, up from $113.45 million a year ago [5] - 'Net Interest Income' is anticipated to be $578.52 million, compared to $525.15 million in the same quarter last year [6] - 'Service charges on deposit accounts' are projected at $20.01 million, up from $18.86 million last year [7] - 'Other Non-Interest Income' is expected to reach $24.50 million, compared to $20.68 million a year ago [8] Market Performance - Wintrust shares have increased by 1.4% over the past month, while the Zacks S&P 500 composite has risen by 2.1% [9] - Wintrust holds a Zacks Rank of 4 (Sell), indicating expectations of underperformance relative to the overall market [9]

Core Insights - Regional banks are reaching all-time highs, with lesser-known names like Citizens Financial Group, East West Bancorp, and Wintrust Financial Corporation leading the charge [1][2]. Group 1: Citizens Financial Group - Citizens Financial Group operates in the Eastern and Midwestern United States, offering a range of banking services, and currently trades at a forward P/E ratio of about 12 [5]. - The bank has a market capitalization of $25 billion and is expected to see earnings growth of over 31% next year, increasing from $3.83 to $5.03 per share, which could lead to a price surge [7]. - Factors such as an increasing net interest margin are contributing to Wall Street's positive outlook on Citizens Financial Group [7]. Group 2: East West Bancorp - East West Bancorp, based in Pasadena, California, has expanded from serving the Chinese-American community to becoming a major regional bank with branches across the West Coast and in Asia [8]. - The bank has a market cap of $15 billion and trades at 13.6 times forward earnings estimates, with analysts projecting a 6.7% increase in earnings next year [10]. - East West Bancorp has a forward dividend yield of about 2%, with dividends increasing by an average annual rate of 17% over the past five years, which may support its high valuation [11]. Group 3: Wintrust Financial Corporation - Wintrust, based in Rosemont, Illinois, operates in the Greater Chicago area and Southwest Florida, and is nearing historical highs [12]. - The bank has a market cap of $9.4 billion and trades at a reasonable 12 times forward earnings estimates, with expected earnings growth of only 4.3% next year [13]. - Wintrust has a forward dividend yield of 1.4%, with quarterly dividends growing by an average of 12.3% annually over the past five years, indicating potential for further stock price increases [14].

Core Viewpoint - Wintrust Financial Corporation will announce its fourth quarter and full year 2025 earnings results on January 20, 2026, after market close, followed by a conference call on January 21, 2026, at 10:00 a.m. CST [1] Group 1 - Individuals can participate in the conference call by registering to receive a dial-in number and unique PIN, with a recommendation to join 10 minutes prior to the start [2] - An accompanying slide presentation will be available on the company's website under the Investor Relations section [2] Group 2 - A replay of the audio-only webcast and the accompanying slide presentation will be accessible on the company's website after the event [3] - The text of the earnings release will also be available on the company's website under the Investor Relations section [3] Group 3 - Wintrust is a financial holding company with approximately $70 billion in assets, offering a community banking experience through over 200 retail banking locations across several states [4] - The company operates various non-bank business units, including residential mortgage origination, wealth management, and commercial insurance premium financing [4]

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Financial Performance - For the three months ended September 30, 2025, the total interest income was $952,408,000, an increase from $898,295,000 for the same period in 2024, representing a growth of approximately 6%[97] - Net interest income for the three months ended September 30, 2025, was $567,010,000, up from $502,583,000 in the prior year, reflecting an increase of about 12.8%[97] - For the nine months ended September 30, 2025, net income was $600,820,000, an increase from $509,683,000 in the same period of 2024, representing a growth of approximately 17.9%[98] - The income before taxes for the three months ended September 30, 2025, was $296,041,000, up from $232,709,000 in the same period of 2024, indicating an increase of approximately 27.2%[97] - Net income for the three months ended September 30, 2025, was $216,254,000, compared to $170,001,000 for the same period in 2024, representing a 27.2% increase[171] - The company reported a net income applicable to common shares of $188,913,000 for the three months ended September 30, 2025, compared to $163,010,000 for the same period in 2024, a 15.8% increase[171] Asset and Liability Management - Total assets at the end of the period on September 30, 2025, were $69,629,638,000, up from $63,788,424,000 a year earlier, indicating a growth of about 9.5%[97] - The total non-interest expense for the three months ended September 30, 2025, was $380,028,000, compared to $360,687,000 in the prior year, reflecting an increase of about 5.3%[97] - Total financial liabilities reached $61,205,278 thousand, with a fair value of $61,242,314 thousand as of September 30, 2025[156] - The aggregate remaining contractual principal balance for loans held-for-investment was $126.4 million as of September 30, 2025, with a fair value of $129.6 million[147] Derivative Financial Instruments - The company utilizes various derivative financial instruments, including interest rate swaps and options, to manage interest rate risk and enhance yield on securities[99][100][101] - The company recognizes derivative financial instruments at fair value in its consolidated financial statements, impacting either income or shareholders' equity depending on hedge accounting qualifications[102] - As of September 30, 2025, the fair value of the Company's derivative financial instruments totaled $208.957 million, compared to $200.027 million as of December 31, 2024, and $255.662 million as of September 30, 2024[104] - The Company had $65.300 million in derivatives designated as hedging instruments under ASC 815 as of September 30, 2025, an increase from $17.330 million in December 31, 2024[104] - Interest rate derivatives designated as cash flow hedges amounted to $59.667 million as of September 30, 2025, significantly up from $7.329 million as of December 31, 2024[104] - The total cash flow hedges had a notional amount of $7.1 billion with a fair value of $54.717 million as of September 30, 2025[108] - The Company expects to reclassify $22.8 million from accumulated other comprehensive income to net interest income over the next 12 months[111] - The Company terminated interest rate swap derivative contracts with a total notional value of $1.5 billion in 2022, resulting in a fair value adjustment of $77.2 million recorded in accumulated other comprehensive income[109][110] Credit Losses and Risk Management - The provision for credit losses for the three months ended September 30, 2025, was $21,768,000, slightly down from $22,334,000 in the same period of 2024[97] - The Company’s counterparty credit risk is managed through established exposure limits and ongoing monitoring of financial performance[126] - There is a risk of increased delinquencies and declines in real estate values, which may necessitate further increases in the company's allowance for credit losses[292] - The company faces challenges related to the accuracy and completeness of customer information used for credit decisions[292] Stock and Shareholder Information - Stock-based compensation expense for Q3 2025 was $10.1 million, compared to $9.5 million in Q3 2024, marking a year-over-year increase of 6.3%[165] - The aggregate intrinsic value of options exercised in the nine months ended September 30, 2025, was approximately $467,000, significantly higher than $50,000 in the same period of 2024[167] - Outstanding restricted shares as of September 30, 2025, were 895,196 shares, with a weighted average grant-date fair value of $101.71[168] - Basic earnings per share for the three months ended September 30, 2025, was $2.82, up from $2.51 in the same period of 2024, reflecting a 12.3% increase[171] - The company declared a quarterly cash dividend of $0.50 per share, amounting to an annualized dividend of $2.00, paid on February 20, 2025[172] Comprehensive Income and Other Financial Metrics - The accumulated other comprehensive income (loss) balance at September 30, 2025, was $(314,808,000), a decrease from $(366,233,000) at July 1, 2025[169] - The net other comprehensive income during the period, net of tax, was $51,425,000 for the three months ended September 30, 2025[169] - The total amount reclassified from accumulated other comprehensive income into net income, net of tax, was $3,723,000 for the three months ended September 30, 2025[170] Future Outlook and Risks - The company anticipates future growth through potential acquisitions and internal growth strategies, as indicated in its forward-looking statements[291] - The company is facing competitive pressures in the financial services sector, which may affect loan and deposit pricing, potentially leading to a loss of market share and reduced income from various products[292] - The company is concerned about the impact of changes in interest rates on net interest income and net interest margin, which could adversely affect profitability[292] - The company may encounter difficulties in identifying and completing favorable acquisitions, which could lead to unexpected losses[292] - There are potential risks associated with cybersecurity, including breaches and data corruption attempts, which could impact the company's operations[292] - The company is subject to regulatory changes that may affect its ability to market products and operate profitably in the mortgage business[292] - The company may experience increased costs related to compliance and regulatory capital requirements[292]

Core Viewpoint - Wintrust Financial Inc. (NASDAQ:WTFC) has shown a mixed performance in its stock price, with a recent increase but a decline over the past month, while experiencing a year-over-year growth of 12.56% [1] Group 1: Stock Performance - The current share price of Wintrust Financial is $130.00, reflecting a 0.74% increase in the current market session [1] - Over the past month, the stock has decreased by 1.68%, but it has increased by 12.56% over the past year [1] Group 2: Valuation Metrics - Wintrust Financial has a lower P/E ratio compared to the aggregate P/E of 12.02 for the Banks industry, which may suggest that the stock is undervalued [5][6] - A lower P/E ratio could indicate that shareholders do not expect the stock to perform better in the future, but it may also reflect undervaluation [6] Group 3: P/E Ratio Analysis - The P/E ratio is a useful metric for assessing market performance, but it has limitations and should not be used in isolation [10] - Other factors such as industry trends and business cycles can also impact a company's stock price, necessitating a comprehensive analysis alongside the P/E ratio [10]

Financial Data and Key Metrics Changes - Wintrust reported a record net income of $216 million for Q3 2025, up from over $195 million in the previous quarter, representing an increase of almost 11% quarter over quarter [4] - Net interest income increased by $20 million from the second quarter to $567 million, driven by solid loan and overall balance sheet growth [5] - Total loans reached $52 billion at quarter end, reflecting an 11% year-to-date increase on an annualized basis [5] - Total deposits were nearly $57 billion at the end of Q3, with deposit growth of just under $900 million [5][9] - Net interest margin was 3.50% for the quarter, slightly down from the prior quarter but within the targeted range [6] Business Line Data and Key Metrics Changes - Loan growth for the quarter was broad-based, with commercial real estate loans growing by $327 million and Wintrust Life Finance growing by $252 million [14] - Non-interest income totaled $130.8 million in Q3, up approximately $6.7 million compared to the prior quarter, supported by higher wealth management and mortgage revenue [11] - Non-interest expenses totaled $380 million, a slight decline from $381.5 million in the previous quarter, indicating well-controlled expenses [11] Market Data and Key Metrics Changes - Wintrust achieved deposit share gains in key markets, ranking third in deposit market share in Illinois, up one position [7] - The company continues to see strong growth in its franchises in Wisconsin and West Michigan, with significant upside potential [7] Company Strategy and Development Direction - The company remains focused on core deposit growth as a key tenet of its franchise, emphasizing a relationship-based approach in its core Midwestern markets [7][19] - Wintrust aims to continue generating loan and deposit growth in the mid to high single-digit range while maintaining a stable net interest margin [18] - The management is committed to disciplined underwriting and is cautious about taking risks that do not meet their standards [18] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the stability of net interest margin despite potential rate cuts by the Fed, citing a balanced approach to managing deposit costs [32][68] - The overall credit environment remains stable, with proactive measures in place to address any challenges [17] - Management noted a sense of measured optimism among customers as they approach year-end, indicating strong portfolio performance [17] Other Important Information - The company has consistently grown tangible book value per share every year since going public and is on track to do so again in 2025 [12] - A one-time impact from preferred stock redemption reduced fully diluted net income per common share by $0.28 in Q3, but the adjusted figure would have been $3.06 without this impact [13] Q&A Session Summary Question: Can you talk about loan growth drivers and pipelines? - Management noted a unique market positioning in Chicago, gaining market share from larger banks, with stable pipelines for C&I and CRE loans [25][29] Question: How do you feel about holding the margin in the current range with potential Fed rate cuts? - Management expressed confidence in maintaining the margin around $350, citing effective management of deposit costs and a balanced loan portfolio [32][33] Question: What is the strategy for commercial loan growth? - Management indicated that the decline in commercial loan growth was more about timing than market competition, with consistent opportunities in the pipeline [37] Question: Are there any segments or industries where you are pulling back on lending? - Management stated they are closely monitoring higher education and healthcare sectors but are not pulling back from lending in general [94] Question: How do you view the competitive landscape among banks? - Management noted that the competitive environment remains rational, with no significant changes among larger and smaller banks [110]