Core Insights - Wintrust Financial (WTFC) reported quarterly earnings of $2.78 per share, exceeding the Zacks Consensus Estimate of $2.59 per share, and showing an increase from $2.32 per share a year ago, resulting in an earnings surprise of +7.34% [1] - The company achieved revenues of $670.78 million for the quarter ended June 2025, surpassing the Zacks Consensus Estimate by 2.27% and up from $591.76 million year-over-year [2] - Wintrust shares have increased approximately 7.5% year-to-date, outperforming the S&P 500's gain of 7.1% [3] Earnings Outlook - The current consensus EPS estimate for the upcoming quarter is $2.64, with expected revenues of $675.23 million, and for the current fiscal year, the EPS estimate is $10.68 on revenues of $2.66 billion [7] - The trend of estimate revisions for Wintrust was unfavorable prior to the earnings release, resulting in a Zacks Rank 4 (Sell) for the stock, indicating expected underperformance in the near future [6] Industry Context - The Banks - Midwest industry, to which Wintrust belongs, is currently ranked in the top 38% of over 250 Zacks industries, suggesting that companies in the top 50% outperform those in the bottom 50% by more than 2 to 1 [8] - Another company in the same industry, MidWestOne (MOFG), is expected to report quarterly earnings of $0.77 per share, reflecting a year-over-year increase of +71.1%, with revenues projected at $59.35 million, up 2.5% from the previous year [9][10]

[Earnings Summary](index=1&type=section&id=Wintrust%20Financial%20Corporation%20Reports%20Record%20Net%20Income) [Q2 2025 Performance Highlights](index=1&type=section&id=Q2%202025%20Performance%20Highlights) Wintrust Financial Corporation reported record net income of $195.5 million for Q2 2025, driven by strong balance sheet growth and a stable net interest margin of 3.54%, with significant annualized growth in loans, deposits, and total assets Q2 2025 vs Q1 2025 Financial Performance | Metric | Q2 2025 | Q1 2025 | | :--- | :--- | :--- | | Net Income | $195.5 million | $189.0 million | | Diluted EPS | $2.78 | $2.69 | | Pre-tax, Pre-provision Income (non-GAAP) | $289.3 million | $277.0 million | Q2 2025 Key Growth Metrics (vs Q1 2025, Annualized) | Metric | Growth Rate | | :--- | :--- | | Total Loans | 19% | | Total Deposits | 17% | | Total Assets | 19% | - CEO Timothy S. Crane attributed the record results to a combination of balance sheet growth and a stable net interest margin, which was **3.54%** in Q2 2025[4](index=4&type=chunk) - The company expects continued loan growth in the **mid-to-high single digits** for the second half of the year, while maintaining conservative credit standards[6](index=6&type=chunk) [Financial Performance Analysis](index=10&type=section&id=SUMMARY%20OF%20RESULTS%3A) [Balance Sheet Analysis](index=10&type=section&id=BALANCE%20SHEET) In Q2 2025, total assets grew by $3.1 billion, primarily driven by a $2.3 billion increase in loans funded by a $2.2 billion rise in deposits, maintaining a 91.4% loans-to-deposits ratio - Total assets increased by **$3.1 billion**, total loans by **$2.3 billion**, and total deposits by **$2.2 billion** in Q2 2025 compared to Q1 2025[19](index=19&type=chunk)[20](index=20&type=chunk) - The loans-to-deposits ratio was **91.4%** at the end of Q2 2025[20](index=20&type=chunk) - The company issued **$425 million** of Series F Preferred Stock on May 22, 2025, in anticipation of redeeming **$412.5 million** of Series D and Series E preferred stock on July 15, 2025[21](index=21&type=chunk) [Net Interest Income Analysis](index=10&type=section&id=NET%20INTEREST%20INCOME) Net interest income for Q2 2025 rose to $546.7 million, primarily fueled by a $1.9 billion increase in average earning assets, with the net interest margin remaining stable at 3.52% (3.54% FTE) Net Interest Income and Margin (Q2 2025 vs Q1 2025) | Metric | Q2 2025 | Q1 2025 | Change | | :--- | :--- | :--- | :--- | | Net Interest Income | $546.7M | $526.5M | +$20.2M | | Net Interest Margin (NIM) | 3.52% | 3.54% | -2 bps | | NIM (FTE, non-GAAP) | 3.54% | 3.56% | -2 bps | - The increase in NII was mainly due to a **$1.9 billion** growth in average earning assets, representing a **12% annualized increase**[23](index=23&type=chunk) [Asset Quality](index=10&type=section&id=ASSET%20QUALITY) Asset quality remained strong and stable in Q2 2025, with a lower provision for credit losses of $22.2 million and stable net charge-offs at 11 basis points, despite a slight increase in non-performing assets Credit Quality Metrics (Q2 2025 vs Q1 2025) | Metric | Q2 2025 | Q1 2025 | | :--- | :--- | :--- | | Provision for Credit Losses | $22.2M | $24.0M | | Net Charge-offs | $13.3M | $12.6M | | Net Charge-offs to Avg. Loans (annualized) | 0.11% | 0.11% | | Non-performing Assets to Total Assets | 0.31% | 0.30% | - The allowance for credit losses increased to **$457.5 million** from **$448.4 million** at the end of Q1 2025[26](index=26&type=chunk) - Non-performing loans totaled **$188.8 million**, or **0.37% of total loans**, at the end of Q2 2025, up from **$172.4 million (0.35%)** in Q1 2025[30](index=30&type=chunk) [Non-Interest Income Analysis](index=11&type=section&id=NON-INTEREST%20INCOME) Non-interest income increased by $7.5 million to $124.1 million in Q2 2025, driven by growth in wealth management, mortgage banking, and fees from covered call options Non-Interest Income Breakdown (Q2 2025 vs Q1 2025) | Category | Q2 2025 | Q1 2025 | Change | | :--- | :--- | :--- | :--- | | Total Non-Interest Income | $124.1M | $116.6M | +$7.5M | | Wealth Management Revenue | $36.8M | $34.0M | +$2.8M | | Mortgage Banking Revenue | $23.2M | $20.5M | +$2.6M | | Fees from Covered Call Options | $5.6M | $3.4M | +$2.2M | [Non-Interest Expense Analysis](index=11&type=section&id=NON-INTEREST%20EXPENSE) Non-interest expense rose by $15.4 million to $381.5 million in Q2 2025, primarily due to increases in salaries and employee benefits and seasonal advertising and marketing expenses Non-Interest Expense Breakdown (Q2 2025 vs Q1 2025) | Category | Q2 2025 | Q1 2025 | Change | | :--- | :--- | :--- | :--- | | Total Non-Interest Expense | $381.5M | $366.1M | +$15.4M | | Salaries and Employee Benefits | - | - | +$8.0M | | Advertising and Marketing | $18.8M | $12.3M | +$6.5M | - Advertising and marketing expenses are typically higher in the second and third quarters due to seasonal sponsorships[39](index=39&type=chunk) [Income Taxes](index=12&type=section&id=INCOME%20TAXES) The company recorded income tax expense of $71.6 million in Q2 2025, with an effective tax rate of 26.79%, higher than Q1 due to a smaller net excess tax benefit from share-based compensation Income Tax Metrics (Q2 2025 vs Q1 2025) | Metric | Q2 2025 | Q1 2025 | | :--- | :--- | :--- | | Income Tax Expense | $71.6M | $64.0M | | Effective Tax Rate | 26.79% | 25.30% | | Net Excess Tax Benefit | $80,000 | $3.7M | [Business Segment Review](index=12&type=section&id=BUSINESS%20SUMMARY) [Community Banking](index=12&type=section&id=Community%20Banking) The Community Banking segment experienced growth in its loan portfolios and increased mortgage banking revenue in Q2 2025, with solid loan pipelines indicating continued momentum - Mortgage banking revenue increased by **$2.6 million** to **$23.2 million** in Q2 2025[44](index=44&type=chunk) - Service charges on deposit accounts were stable at **$19.5 million**[44](index=44&type=chunk) - Gross commercial and commercial real estate loan pipelines remained strong, suggesting continued loan growth in Q3 2025[44](index=44&type=chunk) [Specialty Finance](index=12&type=section&id=Specialty%20Finance) The Specialty Finance segment showed strong activity in Q2 2025, with insurance premium financing originations reaching $6.1 billion and growth in the leasing division's portfolio - Insurance premium financing receivables originations totaled **$6.1 billion** in Q2 2025[45](index=45&type=chunk) - The leasing division's portfolio balances increased, with capital leases, loans, and equipment on operating leases reaching **$2.8 billion**, **$1.2 billion**, and **$289.8 million**, respectively[45](index=45&type=chunk) [Wealth Management](index=12&type=section&id=Wealth%20Management) The Wealth Management segment reported total revenue of $36.8 million in Q2 2025, managing approximately $53.2 billion of assets under administration Wealth Management Metrics (Q2 2025) | Metric | Value | | :--- | :--- | | Revenue | $36.8 million | | Assets Under Administration | $53.2 billion | [Financial Tables](index=13&type=section&id=Financial%20Tables) [Key Operating Measures & Selected Financial Highlights](index=13&type=section&id=WINTRUST%20FINANCIAL%20CORPORATION%20Key%20Operating%20Measures) Wintrust reported strong key operating measures for Q2 2025, including a 28% YoY increase in net income to $195.5 million and significant balance sheet growth, with total assets reaching $69.0 billion Key Operating Measures (Q2 2025 vs Q2 2024) | Metric | Q2 2025 | Q2 2024 | % Change | | :--- | :--- | :--- | :--- | | Net Income | $195.5M | $152.4M | 28% | | Diluted EPS | $2.78 | $2.32 | 20% | | Net Revenue | $670.8M | $591.8M | 13% | | Total Assets | $69.0B | $59.8B | 15% | | Total Loans | $51.0B | $44.7B | 14% | | Total Deposits | $55.8B | $48.0B | 16% | Key Financial Ratios (Q2 2025) | Ratio | Value | | :--- | :--- | | Net Interest Margin | 3.52% | | Return on Average Assets | 1.19% | | Return on Average Common Equity | 12.07% | | Book Value per Common Share | $95.43 | | Tangible Book Value per Common Share (non-GAAP) | $81.86 | [Consolidated Financial Statements](index=16&type=section&id=CONSOLIDATED%20STATEMENTS%20OF%20CONDITION) The Consolidated Statement of Condition as of June 30, 2025, shows total assets of $69.0 billion and total deposits of $55.8 billion, while the Consolidated Statement of Income for Q2 2025 reports net income of $195.5 million Consolidated Statement of Condition Highlights (as of June 30, 2025) | Account | Amount (in thousands) | | :--- | :--- | | **Assets** | | | Total Assets | $68,983,318 | | Net Loans | $50,650,025 | | **Liabilities & Equity** | | | Total Deposits | $55,816,811 | | Total Liabilities | $61,757,622 | | Total Shareholders' Equity | $7,225,696 | Consolidated Statement of Income Highlights (for Three Months Ended June 30, 2025) | Account | Amount (in thousands) | | :--- | :--- | | Net Interest Income | $546,694 | | Provision for Credit Losses | $22,234 | | Non-interest Income | $124,089 | | Non-interest Expense | $381,461 | | **Net Income** | **$195,527** | [Detailed Loan and Deposit Analysis](index=18&type=section&id=TABLE%201%3A%20LOAN%20PORTFOLIO%20MIX%20AND%20GROWTH%20RATES) Total loans grew to $51.0 billion in Q2 2025, a 19% annualized increase, with broad-based growth across core and niche loans, while total deposits increased to $55.8 billion, driven by money market and NOW accounts - Total loans reached **$51.0 billion**, a **19% annualized growth** from Q1 2025. Core loans grew **11%** and niche loans grew **31%** on an annualized basis[56](index=56&type=chunk) - Total deposits grew to **$55.8 billion**, a **17% annualized increase** from Q1 2025. Non-interest-bearing deposits decreased by **12% annualized**, now comprising **19%** of the total deposit mix, down from **21%** in Q1[59](index=59&type=chunk) - As of June 30, 2025, the company held **$10.3 billion** in time certificates of deposit with a weighted-average rate of **3.78%**. The largest tranche, **$4.5 billion**, is set to mature in 4-6 months[61](index=61&type=chunk) [Detailed Net Interest Income and Margin Analysis](index=20&type=section&id=TABLE%204%3A%20QUARTERLY%20AVERAGE%20BALANCES) In Q2 2025, average earning assets grew to $62.2 billion, driving a $20.2 million increase in net interest income to $546.7 million, with a stable fully taxable-equivalent net interest margin of 3.54% Quarterly Average Balances (Q2 2025 vs Q1 2025) | Category | Q2 2025 (Avg) | Q1 2025 (Avg) | | :--- | :--- | :--- | | Total Earning Assets | $62.2B | $60.3B | | Total Loans | $49.5B | $47.8B | | Total Interest-bearing Liabilities | $46.9B | $45.4B | | Non-interest-bearing Deposits | $10.6B | $10.7B | Quarterly Net Interest Margin Analysis (Q2 2025) | Metric | Value | | :--- | :--- | | Yield on Earning Assets | 5.96% | | Rate on Interest-bearing Liabilities | 3.20% | | Interest Rate Spread | 2.76% | | Net Interest Margin (GAAP) | 3.52% | | Net Interest Margin (FTE, non-GAAP) | 3.54% | [Interest Rate Sensitivity](index=24&type=section&id=TABLE%208%3A%20INTEREST%20RATE%20SENSITIVITY) The company's interest rate sensitivity profile remains relatively neutral, with minimal projected impact on net interest income from gradual rate changes, as most variable-rate loans are tied to SOFR and CMT indices Net Interest Income Sensitivity (Ramp Scenario, as of June 30, 2025) | Rate Change | % Change in NII | | :--- | :--- | | +200 bps | 0.0% | | +100 bps | 0.0% | | -100 bps | (0.1)% | | -200 bps | (0.4)% | - Of the **$51.0 billion** total loan portfolio, **$30.8 billion** are variable-rate loans[78](index=78&type=chunk) - The largest portion of variable-rate loans is tied to SOFR tenors (**$19.5 billion**), followed by the 12-month CMT (**$6.9 billion**)[78](index=78&type=chunk) [Detailed Asset Quality Analysis](index=27&type=section&id=TABLE%2010%3A%20ALLOWANCE%20FOR%20CREDIT%20LOSSES) The allowance for credit losses stood at $457.5 million at the end of Q2 2025, with stable net charge-offs and increased non-performing loans, maintaining strong ACL coverage Allowance for Credit Losses Rollforward (Q2 2025) | Item | Amount (in thousands) | | :--- | :--- | | Beginning ACL (Q1'25) | $448,387 | | Provision for Credit Losses | $22,234 | | Net Charge-offs | ($13,340) | | **Ending ACL (Q2'25)** | **$457,461** | - The allowance for core loans was **1.37%** of the total core loan balance, stable from Q1 2025[85](index=85&type=chunk) - Total non-performing loans increased to **$188.8 million (0.37% of total loans)** from **$172.4 million (0.35% of total loans)** in the prior quarter[87](index=87&type=chunk)[89](index=89&type=chunk) [Detailed Non-Interest Income and Expense Analysis](index=32&type=section&id=TABLE%2015%3A%20NON-INTEREST%20INCOME) Total non-interest income for Q2 2025 increased by 6% to $124.1 million, driven by wealth management and mortgage banking, while total non-interest expense rose 4% to $381.5 million due to salaries and advertising Non-Interest Income Key Items (Q2 2025 vs Q1 2025) | Category | Q2 2025 | Q1 2025 | % Change | | :--- | :--- | :--- | :--- | | Total Non-Interest Income | $124.1M | $116.6M | 6% | | Wealth Management | $36.8M | $34.0M | 8% | | Mortgage Banking | $23.2M | $20.5M | 13% | Non-Interest Expense Key Items (Q2 2025 vs Q1 2025) | Category | Q2 2025 | Q1 2025 | % Change | | :--- | :--- | :--- | :--- | | Total Non-Interest Expense | $381.5M | $366.1M | 4% | | Salaries and Employee Benefits | $219.5M | $211.5M | 4% | | Advertising and Marketing | $18.8M | $12.3M | 53% | - Mortgage originations for sale increased to **$681.5 million** in Q2 2025 from **$460.5 million** in Q1 2025, with the production margin improving to **2.07%** from **1.80%**[94](index=94&type=chunk) [Supplementary Information](index=37&type=section&id=TABLE%2018%3A%20SUPPLEMENTAL%20NON-GAAP%20FINANCIAL%20MEASURES%2FRATIOS) [Non-GAAP Financial Measures](index=37&type=section&id=Non-GAAP%20Financial%20Measures) The company utilizes non-GAAP measures such as taxable-equivalent net interest margin (3.54%), tangible book value per common share ($81.86), and pre-tax, pre-provision income ($289.3 million) to provide a more meaningful view of core performance and equity Key Non-GAAP Metrics (Q2 2025) | Metric | Value | | :--- | :--- | | Net Interest Margin, FTE | 3.54% | | Tangible Book Value per Common Share | $81.86 | | Return on Average Tangible Common Equity | 14.44% | | Pre-tax, Pre-provision Income | $289.3M | - Management believes non-GAAP measures like tangible common equity ratio and tangible book value per common share are useful for measuring the company's equity, while pre-tax, pre-provision income is a useful measure of core net income[99](index=99&type=chunk)[100](index=100&type=chunk) [Corporate Information and Forward-Looking Statements](index=39&type=section&id=WINTRUST%20SUBSIDIARIES) Wintrust Financial Corporation operates through 16 community bank subsidiaries and various non-bank businesses, with its forward-looking statements subject to economic, regulatory, and market risks, and a conference call scheduled for July 22, 2025 - Wintrust operates **16 community bank subsidiaries** and several non-bank businesses like FIRST Insurance Funding, Wintrust Mortgage, and Great Lakes Advisors LLC[103](index=103&type=chunk)[105](index=105&type=chunk) - The document includes a safe harbor statement for forward-looking statements, noting that actual results could differ materially due to various factors including economic conditions, interest rate changes, and competitive pressures[104](index=104&type=chunk)[106](index=106&type=chunk) - A conference call to discuss the Q2 2025 earnings is scheduled for **July 22, 2025**[109](index=109&type=chunk)

Core Insights - Wintrust Financial Corporation reported record net income of $384.6 million for the first half of 2025, an increase from $339.7 million in the same period of 2024, with diluted earnings per share rising to $5.47 from $5.21 [1] - The company achieved record quarterly net income of $195.5 million in Q2 2025, up from $189.0 million in Q1 2025, with pre-tax, pre-provision income also reaching a record of $289.3 million [2][3] - The CEO highlighted strong balance sheet growth and a stable net interest margin of 3.54% in Q2 2025, driven by average earning asset growth [3][4] Financial Performance - Total loans increased by $2.3 billion, or 19% annualized, while total deposits rose by approximately $2.2 billion, or 17% annualized in Q2 2025 [4][5] - Net interest income for Q2 2025 was $546.7 million, an increase from $526.5 million in Q1 2025, attributed to strong average earning asset growth of $1.9 billion [5][11] - Non-interest income totaled $124.1 million in Q2 2025, up from $116.6 million in Q1 2025, with wealth management revenue increasing to $36.8 million [19][20] Asset Quality - The allowance for credit losses was $457.5 million as of June 30, 2025, with a provision for credit losses of $22.2 million in Q2 2025, down from $24.0 million in Q1 2025 [14][16] - Net charge-offs totaled $13.3 million in Q2 2025, consistent with the previous quarter at 11 basis points of average total loans [16][18] Business Segments - Community banking saw growth in commercial, commercial real estate, and residential real estate loan portfolios in Q2 2025 [30][31] - Specialty finance reported originations of $6.1 billion in insurance premium financing receivables during Q2 2025, with significant increases in average balances [32] - Wealth management services generated $36.8 million in revenue, with approximately $53.2 billion in assets under administration as of June 30, 2025 [33] Capital and Ratios - The company completed the issuance of $425 million of Series F Preferred Stock, redeeming $412.5 million of Series D and E preferred stock [9] - As of June 30, 2025, the Tier 1 capital ratio was 11.4%, and the total capital ratio was 12.9% [41]

Group 1 - The article discusses the recent IPO of Wintrust Financial Corporation's 7.875% Depositary Shares Fixed-to-Reset [1] - It invites active investors to join a free trial and engage in discussions with sophisticated traders and investors [1] Group 2 - The article emphasizes that past performance is not indicative of future results and does not provide specific investment recommendations [2] - It clarifies that the analysts involved may not be licensed or certified by any regulatory body [2]

Core Viewpoint - Wintrust Financial Corporation will release its second quarter and year-to-date 2025 earnings results on July 21, 2025, and will host a conference call on July 22, 2025, at 10:00 a.m. CDT [1] Company Overview - Wintrust is a financial holding company with approximately $66 billion in assets, traded on the NASDAQ Global Select Market [4] - The company operates over 200 retail banking locations through 16 community bank subsidiaries in various regions including greater Chicago, southern Wisconsin, west Michigan, northwest Indiana, and southwest Florida [4] - Wintrust provides a range of services including residential mortgage origination, wealth management, commercial and life insurance premium financing, and qualified intermediary services for tax-deferred exchanges [4] Conference Call Details - Individuals interested in participating in the conference call can register to receive a dial-in number and unique PIN, with a recommendation to join 10 minutes prior to the event [2] - An audio-only webcast and accompanying slide presentation will be available on the company's website [3]

Core Points - Wintrust Financial Corporation will redeem all shares of its Series D and Series E Preferred Stock on July 15, 2025, at a price of $25.00 per share for Series D and $25,000 per share for Series E [1][2] - The redemptions will be funded by net proceeds from a public offering of Series F Preferred Stock completed on May 22, 2025 [1] - Regular quarterly dividends will be paid on the Redemption Date to holders of record as of July 1, 2025, but the redemption price will not include any accrued and unpaid dividends [3] Company Overview - Wintrust is a financial holding company listed on the NASDAQ Global Select Market, operating over 200 retail banking locations through 16 community bank subsidiaries across several states [5] - The company provides a range of services including residential mortgage origination, wealth management, and commercial financing [5]

Core Viewpoint - Wintrust Financial Corporation has announced a public offering of 17 million depositary shares, aiming for gross proceeds of $425 million, with each share representing a 1/1,000th interest in its preferred stock [1][2]. Group 1: Offering Details - The offering consists of 17 million depositary shares priced at $25.00 each, totaling gross proceeds of $425 million before expenses [1]. - Each depositary share represents a 1/1,000th interest in Wintrust's 7.875% Fixed-Rate Reset Non-Cumulative Perpetual Preferred Stock, Series F [1]. - The expected closing date for the offering is May 22, 2025, pending customary closing conditions [1]. Group 2: Use of Proceeds - Wintrust plans to use the net proceeds for general corporate purposes, which may include redeeming outstanding shares of Series D and Series E preferred stock, subject to Federal Reserve approval [2]. Group 3: Listing and Management - Wintrust intends to list the depositary shares on The Nasdaq Global Select Market under the symbol "WTFCN" [2]. - RBC Capital Markets is the sole book-running manager, with Keefe, Bruyette & Woods, Piper Sandler, and US Bancorp acting as co-managers for the offering [2]. Group 4: Company Overview - Wintrust is a financial holding company with over 200 retail banking locations across several states, providing a range of banking and non-banking services [5]. - The company operates under a philosophy of offering large bank resources while maintaining a community banking experience [5].

Financial Performance - For the three months ended March 31, 2025, the company reported net interest income of $526,474,000, an increase from $464,194,000 for the same period in 2024, representing a growth of 13.4%[88] - The total assets at the end of the period were $65,870,066,000, up from $57,576,933,000 as of March 31, 2024, indicating a year-over-year increase of 14.0%[88] - The company recorded a net income of $189,039,000 for the three months ended March 31, 2025, compared to $187,294,000 for the same period in 2024, reflecting a slight increase of 0.9%[88] - Non-interest income for the three months ended March 31, 2025, was $116,634,000, compared to $140,580,000 in the same period of 2024, showing a decrease of 17.0%[88] - The company reported total non-interest expenses of $366,090,000 for the three months ended March 31, 2025, compared to $333,145,000 for the same period in 2024, marking an increase of 9.9%[88] - The net income applicable to common shares for Q1 2025 was $182,048,000, compared to $180,303,000 in Q1 2024, reflecting a slight increase of 1%[168] - Basic earnings per share decreased from $2.93 in Q1 2024 to $2.73 in Q1 2025, a decline of 6.8%[168] Derivative and Risk Management - The company utilized interest rate derivatives, including swaps and collars, to manage interest rate risk, with cash flow hedges designated for variable rate loans[96] - As of March 31, 2025, the total fair value of derivatives was $204,257,000, compared to $200,027,000 as of December 31, 2024, indicating a slight increase of 1.1%[95] - Interest rate derivatives designated as cash flow hedges amounted to $44,304,000 as of March 31, 2025, up from $17,330,000 as of December 31, 2024, reflecting a significant increase of 156.1%[95] - The company had interest rate lock commitments with an aggregate notional amount of approximately $242.5 million as of March 31, 2025[109] - The company actively manages counterparty credit risk through established exposure limits and ongoing financial performance monitoring[118] - As of March 31, 2025, there were no derivatives in a net liability position subject to cross-default provisions[120] Asset Valuation and Fair Value Measurements - The company classified $121.8 million of municipal securities as Level 3, with a focus on equivalent rating, yield, and other pricing terms for valuation[128] - The fair value of mortgage servicing rights (MSRs) was classified as Level 3, with a total of $196.3 million and a weighted average discount rate of 10.94%[134] - The fair value of derivative assets as of March 31, 2025, was $196.696 million, while derivative liabilities stood at $248.933 million, indicating a net credit exposure of $62.399 million[122] - The total fair value of available-for-sale securities was $5,351.0 million, with Level 2 assets comprising $4,661.7 million[139] - The total fair value of derivative assets was $204.3 million as of March 31, 2025, with Level 2 assets at $198.8 million[139] Stock and Compensation - The company recognized stock-based compensation expense of $10.4 million in Q1 2025, compared to $9.2 million in Q1 2024[160] - As of March 31, 2025, there were approximately 347,000 shares available for future grants under the Company Stock Incentive Plans[159] - The intrinsic value of stock options outstanding at March 31, 2025, was $384,000, with a weighted average strike price of $44.81[161] - The intrinsic value of options exercised increased significantly from approximately $50,000 in Q1 2024 to $467,000 in Q1 2025, representing a 834% increase[163] - The number of outstanding restricted shares increased from 829,154 in Q1 2024 to 926,067 in Q1 2025, a growth of 11.7%[164] Regulatory and Market Risks - The Company faces competitive pressures in the financial services sector, which may lead to a loss of market share and reduced income from deposits, loans, and advisory fees[275] - There are risks associated with the Company's ability to identify and complete favorable acquisitions, which could adversely affect profitability[275] - The Company may experience increased costs due to protecting customers from the impact of stolen debit card information[275] - The Company is subject to potential reputational harm and customer loss due to technological changes allowing consumers to complete financial transactions without a bank[275] - Regulatory changes may impact the Company's ability to market products and operate profitably, particularly in the mortgage business[275] - The Company may face increased compliance costs and heightened regulatory capital requirements due to changes in the regulatory environment[275] Other Financial Metrics - The accumulated other comprehensive income improved from a loss of $508,335,000 at the beginning of 2025 to a loss of $410,015,000 by March 31, 2025[165] - The company reported a net other comprehensive income of $98,320,000 for the period ending March 31, 2025, compared to a net loss of $123,917,000 for the same period in 2024[165] - The weighted average common shares outstanding increased from 61,481 in Q1 2024 to 66,726 in Q1 2025, an increase of 8.5%[168]

Group 1 - The article expresses concerns about a slowdown in demand for credit and the overvaluation of Wintrust Financial Corporation (WTFC) [1] - WTFC has experienced a decline of 17% in its stock price since the previous analysis [1] Group 2 - The author emphasizes a preference for fundamental analysis over technical analysis, focusing on actual company performance rather than stock price movements [1]

Financial Data and Key Metrics Changes - The company reported quarterly net income of $189 million and record net interest income of $526 million, despite having two fewer business days compared to the prior period [6][36] - Loans grew by over $650 million and deposits increased by over $1.1 billion, with a net interest margin of 3.56%, which is five basis points higher than the previous quarter [7][11] - Charge-offs for the quarter decreased to 11 basis points, and the provision for credit losses was $24 million, consistent with prior quarters [8][9] Business Line Data and Key Metrics Changes - Loan growth was 6% on an annualized basis, while deposit growth was approximately 8% on an annualized basis [11] - Non-interest income was relatively stable, totaling $116.6 million, with increases in net security gains and fees from covered call options offset by lower wealth management revenue [17] - Non-interest expenses totaled $366.1 million, down approximately $2.4 million from the prior quarter, primarily due to lower salary and employee benefit expenses [18][19] Market Data and Key Metrics Changes - Non-interest bearing deposits represented 21% of total deposits at the end of the quarter, remaining stable over the last five quarters [12] - The company anticipates strong loan growth in the second quarter, particularly in the premium finance segment, which is expected to grow close to $1 billion [26] Company Strategy and Development Direction - The company announced an increase in its dividend to $2 per share on an annualized basis and continues to grow its capital ratio, with a CET1 ratio of slightly over 10% [36] - The management emphasized the importance of differentiated client service and maintaining a strong local presence to navigate economic uncertainties [40] Management's Comments on Operating Environment and Future Outlook - Management noted that while there is uncertainty in the market, clients remain generally encouraged about the local economy and their ability to perform normally [45] - The company is focused on proactive communication with clients to address concerns related to economic conditions, tariffs, and funding cuts [34][46] Other Important Information - The company received 14 Coalition Greenwich Awards and was recognized for best customer service in Illinois for the fourth consecutive year [36] - The tangible book value per common share increased to $78.83 compared to $75.39 in the prior quarter [23] Q&A Session Summary Question: How prevalent is uncertainty from borrowers and its impact on growth outlook? - Management acknowledged that borrowers are cautious but remain generally encouraged about the local economy, maintaining their loan growth expectations [45][46] Question: Can you walk us through the thought process on reserve changes? - The management explained that while the baseline economic scenario improved, they implemented a qualitative overlay due to spikes in credit spreads and equity market factors at the end of the quarter [52][69] Question: Any changes in competitive pricing on new home production? - Management noted that competition remains rational, with slight declines in rates from competitors, but they expect to balance this with strong loan growth [58][60] Question: How is new client acquisition in wealth management going? - The company is transitioning to a new platform that is expected to improve capabilities for financial advisors, which should enhance growth in the wealth management business [72][73] Question: Thoughts on M&A and growth through acquisition? - Management indicated ongoing M&A conversations and expressed confidence in their ability to pursue attractive acquisition opportunities [76] Question: How should we think about the source of deposit growth going forward? - Management expects to continue growing deposits to match loan growth, with a stable mix of commercial and consumer relationships [82][84]