Financial Data and Key Metrics Changes - For full year 2025, the company reported net income of $824 million, up 19% from $695 million in 2024. Earnings per diluted share increased to $11.40 from $10.31 in 2024, and tangible book value rose by over $13 to nearly $89 per share. Total assets at year-end were just over $71 billion [4][5]. - The fourth quarter net income was $223 million, a record, up 3% or $7 million from the prior quarter. Net interest income also reached a record level, driven by a $1.1 billion increase in average earning assets and a four basis points increase in net interest margin [4][8]. Business Line Data and Key Metrics Changes - Loan growth for the fourth quarter was approximately $1 billion, representing 8% growth on an annualized basis, while deposit growth was also $1 billion, reflecting a 7% increase over the prior quarter. For the full year, loans and deposits grew 11% and 10%, respectively [8][9]. - Non-interest income totaled $130.4 million in the fourth quarter, slightly down from $130.8 million in the prior quarter, impacted by lower security gains [10]. Market Data and Key Metrics Changes - The company moved into third position in deposit market share in the Chicago area, with strong gains in Wisconsin and West Michigan [5]. - The credit quality remained solid, with non-performing loans increasing slightly but remaining manageable at 35 basis points [14][15]. Company Strategy and Development Direction - The primary objective for 2026 is to continue delivering solid and consistent financial performance, with expectations of mid to high single-digit loan growth funded by a similar level of deposit growth [18][19]. - The company plans to invest in tools, technology, and people to support growth while maintaining a stable net interest margin around 3.5% [18][19]. Management's Comments on Operating Environment and Future Outlook - Management expressed cautious optimism regarding local economies, noting low employment levels and a solid quarter for loan growth. They anticipate that the first quarter may be softer but expect to meet targets in the first half of the year [23][24]. - The management team remains focused on organic growth and is open to acquisitions if opportunities arise, but the current plan is to grow the business organically [40][46]. Other Important Information - The company has a buyback plan authorized for over $200 million, which could be utilized if organic growth opportunities do not require it [46]. - The company continues to monitor its exposure to commercial real estate loans, which comprise roughly one quarter of its total portfolio, and sees signs of stabilization in this area [15][17]. Q&A Session Summary Question: Can you talk about loan growth and what drives it? - Management expressed cautious optimism about local economies and noted broad-based loan growth, with expectations for solid performance in the first half of the year despite typical seasonality [22][23]. Question: What are the expectations for operating leverage and expenses in 2026? - Management expects mid to high single-digit revenue growth with expenses growing in the 4%-5% range, aiming for positive operating leverage [26][28]. Question: Can you discuss deposit costs and growth drivers? - Management highlighted effective management of deposit costs and noted that growth mainly came from non-maturity deposits, with a minor benefit expected from CD repricing [32][34]. Question: What areas are not meeting expectations? - Management indicated that the mortgage business could be stronger and emphasized a disciplined approach to commercial activity [38]. Question: Is there any appetite for M&A outside of organic growth? - Management stated that while they are focused on organic growth, they remain opportunistic regarding acquisitions in other Midwest geographies [65]. Question: What are the strategic benefits of operating multiple banking charters? - Management believes that having 16 charters keeps them closer to the market and provides valuable benefits, including deposit insurance and market share advantages [70][71].

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Wintrust Financial Corporation Earnings Release Presentation Q4 2025 Forward Looking Statements This document contains forward-looking statements within the meaning of federal securities laws. Forward-looking information can be identified through the use of words such as "intend," "plan," "project," "expect," "anticipate," "believe," "estimate," "contemplate," "possible," "will," "may," "should," "would" and "could." Forward-looking statements and information are not historical facts, are premised on many f ...

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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