Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 _________________________________________ FORM 10-Q _________________________________________ ☑ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended June 30, 2025 OR TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 ☐ For the transition period from to Commission File Number 001-35077 ________________________________ ...

FOR IMMEDIATE RELEASE July 21, 2025 FOR MORE INFORMATION CONTACT: David A. Dykstra, Vice Chairman & Chief Operating Officer (847) 939-9000 Amy Yuhn, Executive Vice President, Communications (847) 939-9591 Web site address: www.wintrust.com Wintrust Financial Corporation Reports Record Net Income ROSEMONT, ILLINOIS – Wintrust Financial Corporation ("Wintrust", "the Company", "we" or "our") (Nasdaq: WTFC) announced record net income of $384.6 million, or $5.47 per diluted common share, for the first six month ...

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 _________________________________________ FORM 10-Q _________________________________________ ☑ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 31, 2025 OR TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 ☐ For the transition period from to Commission File Number 001-35077 _______________________________ ...

Financial Performance - Wintrust Financial Corporation reported record quarterly net income of $189.0 million, or $2.69 per diluted common share, for Q1 2025, compared to $185.4 million, or $2.63 per diluted common share in Q4 2024[2]. - Net income for Q1 2025 was $189,039,000, representing an increase of 2.3% from $185,362,000 in Q4 2024[55]. - Net income for Q1 2025 was $189.0 million, representing a 2% increase from Q4 2024 and a 1% increase from Q1 2024[48]. - The effective tax rate was 25.30% in Q1 2025, down from 26.76% in Q4 2024, influenced by share-based compensation tax effects[41]. - Total non-interest income for Q1 2025 was $116,634 thousand, representing a $3,183 thousand increase or 3% compared to Q4 2024, but a decrease of $23,946 thousand or 17% compared to Q1 2024[88]. Loan and Deposit Growth - Total loans increased by $653 million, or 6% annualized, while total deposits increased by approximately $1.1 billion, or 8% annualized in Q1 2025[4]. - Total loans reached $48.71 billion, up 6% from Q4 2024 and 13% from Q1 2024[48]. - Total deposits increased to $53.57 billion, an 8% increase from Q4 2024 and a 15% increase from Q1 2024[48]. - The company's loans-to-deposits ratio ended the quarter at 90.9%[20]. - Total deposits rose by 8% from $52,512,349,000 on December 31, 2024, to $53,570,038,000 on March 31, 2025, reflecting a 15% increase year-over-year[58]. Interest Income and Margin - Net interest income rose to $526.5 million in Q1 2025, an increase of $1.3 million from Q4 2024, supported by an improved net interest margin of 3.54%[5]. - The net interest margin for Q1 2025 was 3.54%, up 5 basis points from Q4 2024 but down 3 basis points from Q1 2024[48]. - Total interest income for Q1 2025 was $886,965,000, a decrease of 2.7% from $913,501,000 in Q4 2024[55]. - Total interest expense decreased to $360,491 thousand in Q1 2025 from $388,353 thousand in Q4 2024, a reduction of 7.2%[64]. - The total interest-bearing liabilities for the quarter ended March 31, 2025, were 3.22%, down from 3.44% in the previous quarter[67]. Credit Losses and Charge-offs - Provision for credit losses totaled $24.0 million in Q1 2025, up from $17.0 million in Q4 2024, reflecting macroeconomic outlook impacts[5]. - Net charge-offs decreased to $12.6 million in Q1 2025, or 11 basis points of average total loans, compared to $15.9 million, or 13 basis points in Q4 2024[27]. - The allowance for credit losses at the end of the period was $448,387,000, an increase from $437,060,000 at the end of the previous quarter[77]. - Total charge-offs for the quarter were $17,449,000, a decrease from $19,731,000 in the previous quarter[77]. - The annualized net charge-offs as a percentage of total loans was 0.11% for the quarter, compared to 0.13% in the previous quarter[77]. Asset Management and Wealth Management - Wealth management revenue decreased by $4.7 million in Q1 2025 due to system transitions and lower market valuations[31]. - Wealth management revenue for Q1 2025 totaled $34.0 million, slightly down from Q4 2024[45]. - As of March 31, 2025, the company had approximately $51.1 billion in assets under administration in its wealth management subsidiaries[45]. - Total wealth management income decreased to $34,042 thousand in Q1 2025, down $4,733 thousand or 12% from Q4 2024, and down $773 thousand or 2% from Q1 2024[88]. Operational Efficiency - Total non-interest expense for Q1 2025 was $366,090,000, slightly down from $368,539,000 in Q4 2024, a decrease of 0.4%[55]. - The efficiency ratio (GAAP) for the latest quarter was 57.21%, slightly better than 57.46% in the previous quarter, showing improved operational efficiency[97]. - Salaries and employee benefits totaled $211,526 thousand in Q1 2025, a slight decrease from $212,133 thousand in Q4 2024[93]. Strategic Initiatives and Market Conditions - The Company is focused on growth strategies, including potential acquisitions of banks and specialty finance businesses, as well as plans to establish new branches[104]. - The Company anticipates potential risks affecting its loan portfolio, including economic conditions, trade policy changes, and defaults, which may require increases in credit loss allowances[102]. - The Company faces competitive pressures in the financial services sector, which may impact pricing and market share for its loan and deposit products[103]. - The Company is monitoring the impact of regulatory changes and heightened capital requirements on its operations and financial performance[106].

Capital and Regulatory Compliance - The Company deferred 100% of the day-one effect of adopting CECL for two years and 25% of the cumulative increase or decrease in the allowance for credit losses since the adoption of CECL [68]. - As of December 31, 2024, the Company's Tier 1 Capital Ratio was 10.7%, exceeding the well-capitalized standard of 6.0% [74]. - The Common Equity Tier 1 Capital Ratio was 9.9%, surpassing the minimum requirement of 4.5% [74]. - The Total Capital Ratio stood at 12.3%, well above the required minimum of 8.0% [74]. - The Company and its subsidiary banks maintained a Capital Conservation Buffer of 2.5% [71]. - As of December 31, 2024, all of the Company's banks were categorized as "well-capitalized" and met additional requirements under the Capital Conservation Buffer [81]. - The Company must comply with federal and state law limitations on dividend payments due to regulatory capital requirements [77]. - The Federal Reserve may require bank holding companies to maintain capital ratios substantially in excess of mandated minimum levels based on economic conditions [69]. Special Assessments and Regulatory Changes - The Company recorded $34.4 million in special assessment payments in Q4 2023 related to the FDIC's special assessment for bank failures [87]. - The FDIC's special assessment will continue for a total of eight quarterly installments starting June 2024 [87]. Compliance and Reporting Requirements - The Corporate Transparency Act (CTA) requires the U.S. Treasury Department's FinCEN to establish a national beneficial ownership information registry, with reporting requirements effective January 1, 2024 [93]. - The final Beneficial Ownership Information Reporting Requirements rule mandates certain reporting companies to file beneficial ownership information reports, impacting compliance costs for the company [93]. - The Anti-Money Laundering Act of 2020 (AMLA) may significantly alter due diligence and reporting requirements for banks over the next few years [92]. - The company is subject to extensive regulations under federal and state securities laws, impacting all aspects of its securities businesses [103]. - Compliance with data privacy and cybersecurity laws is evolving, with potential increased costs and risks associated with new state laws and federal proposals [98]. - The company must adhere to the Bank Secrecy Act (BSA) and USA PATRIOT Act, requiring maintenance of an anti-money laundering program and employee training [91]. - The company is required to provide privacy notices to customers and implement a comprehensive information security program under the Gramm-Leach-Bliley Act (GLB Act) [97]. Workforce and Employee Development - As of December 31, 2024, Wintrust employed 5,903 full-time equivalent employees, with 98% classified as full-time [129]. - In 2024, Wintrust filled over 1,390 positions, with 53% of new hires identifying as female and 41% as racial or ethnic minorities [130]. - The turnover rate for Wintrust in 2024 was approximately 12%, with voluntary departures accounting for about 75% of total turnover [130]. - Wintrust's workforce is composed of 56% women and 33% racial and ethnic minorities [132]. - In 2024, Wintrust invested more than 177,000 total hours in training for team members [133]. - Over 425 leaders participated in leadership development programs in 2024 [134]. - Wintrust has a robust total rewards package designed to attract and retain talent, including competitive compensation and comprehensive benefits [131]. - The company has implemented a mentoring program, "Paired To Win," with over 1,300 employees participating, including 33% minorities [132]. - Wintrust maintains an online training catalog with over 21,000 course offerings for employee development [133]. Environmental Impact - The corporate campus greenhouse gas carbon emissions (CO2e) totaled 3,692 tons in 2024, a decrease from 3,938 tons in 2023 [137]. - The aggregate measurement of greenhouse gas carbon emissions from the corporate campus and retail banking locations totaled 17,699 tons in 2024, down from 18,607 tons in 2023 [137]. - Climate-focused assets in the Company's portfolios reached approximately $135 million as of December 31, 2024 [138]. Interest Rate Risk Management - The Company aims to manage interest rate risk through various derivative financial instruments, including interest rate swaps and options [526]. - The Static Shock Scenario indicates a potential decrease in net interest income of (1.6)% under a +200 basis points increase in interest rates as of December 31, 2024 [525]. - The Ramp Scenario shows a potential decrease in net interest income of (0.2)% under a +200 basis points increase in interest rates as of December 31, 2024 [525]. - The Company has executed various derivative instruments to hedge variable-rate loan exposures in response to the current interest rate cycle [526]. - There were no covered call options outstanding as of December 31, 2024 or 2023, indicating a shift in strategy regarding interest rate risk management [528].

Financial Performance - Wintrust Financial Corporation reported a record net income of $695.0 million or $10.31 per diluted common share for the year ended December 31, 2024, representing an increase of 11.6% from $622.6 million or $9.58 per diluted common share in 2023[2]. - For the fourth quarter of 2024, net income was $185.4 million or $2.63 per diluted common share, up from $170.0 million or $2.47 per diluted common share in the third quarter of 2024, marking a 7.9% increase[3]. - Net income for Q4 2024 was $185,362,000, an increase from $123,480,000 in Q4 2023, representing a growth of 50.2%[67]. - Basic net income per common share for Q4 2024 was $2.68, compared to $1.90 in Q4 2023, reflecting an increase of 40.9%[67]. - The company reported a net interest income (GAAP) of $525,148,000 for Q4 2024, up from $502,583,000 in Q3 2024[112]. Loan and Deposit Growth - Total loans increased by approximately $1.0 billion, or 8% annualized, and total deposits increased by approximately $1.1 billion, or 9% annualized, in the fourth quarter of 2024[5]. - Total loans reached $48,055,037 thousand, up 2.1% from $47,067,447 thousand in the prior quarter[62]. - Total deposits increased to $52,512,349 thousand, a growth of 2.15% from $51,404,966 thousand in the previous quarter[62]. - Total loans, net of unearned income increased to $48,055,037, reflecting an 8% growth from the previous quarter and a 14% increase year-over-year[68]. - Non-interest-bearing deposits grew by 25% year-over-year, reaching $11,410,018[70]. Interest Income and Margin - Net interest income for the fourth quarter of 2024 totaled $525.1 million, an increase of $22.6 million compared to the third quarter of 2024, primarily due to a $2.6 billion increase in average earning assets[26]. - The net interest margin remained stable at 3.49% during the fourth quarter of 2024, unchanged from the third quarter of 2024[27]. - The taxable-equivalent net interest margin (non-GAAP) for Q4 2024 was 3.51%, unchanged from Q3 2024, indicating stable performance in interest-earning assets[112]. Non-Interest Income - Non-interest income for Q4 2024 totaled $113,451,000, up from $87,348,000 in Q4 2023, marking a 29.9% increase[67]. - Total Non-Interest Income for the year ended December 31, 2024, was $488,325, reflecting a 12% increase of $54,219 compared to 2023[102]. - Mortgage banking revenue increased by $4.5 million to $20.5 million in Q4 2024 compared to Q3 2024, driven by a $5.5 million positive impact from net fair value marks[53]. Expenses and Efficiency - Non-interest expenses totaled $368.5 million in the fourth quarter of 2024, an increase of $7.9 million compared to the third quarter of 2024, primarily due to the Macatawa acquisition[43]. - Total non-interest expense for Q4 2024 was $368,539,000, an increase of $7,852,000 or 2% compared to Q3 2024, and an increase of $5,887,000 or 2% compared to Q4 2023[109]. - The efficiency ratio (GAAP) improved to 57.46% in Q4 2024 from 58.88% in Q3 2024, indicating better operational efficiency[112]. Credit Quality - Non-performing loans improved to 0.36% of total loans at December 31, 2024, down from 0.38% at September 30, 2024, indicating improved credit quality[32]. - The provision for credit losses totaled $17.0 million in the fourth quarter of 2024, a decrease from $22.3 million in the third quarter of 2024, reflecting a one-time provision related to the Macatawa acquisition[9]. - The allowance for loan losses as a percentage of loans at period end was 0.76% as of December 31, 2024, down from 0.77% in the previous quarter[93]. Acquisitions and Market Expansion - The Company completed the acquisition of Macatawa on August 1, 2024, with preliminary goodwill recorded at approximately $142.1 million[56]. - The number of banking offices increased to 205, up from 203 in the previous quarter, indicating continued market expansion[62]. - Wintrust aims to maintain a net interest margin in the 3.50% range moving into 2025, supported by stable net interest income growth and disciplined expense control[4]. Future Outlook and Strategic Initiatives - The company plans to form additional de novo banks or branch offices as part of its growth strategy[119]. - Forward-looking statements indicate expectations for future financial performance and potential acquisitions in specialty finance or wealth management[119]. - The company is focused on managing risks associated with economic conditions, interest rates, and competitive pressures in the financial services sector[119].

Financial Performance - Wintrust recorded net income of $170.0 million for Q3 2024, a 4% increase from $164.2 million in Q3 2023[170]. - Net income for Q3 2024 totaled $170.0 million, an increase of $5.8 million, or 4%, compared to Q3 2023[189]. - Non-interest income totaled $113.1 million in Q3 2024, slightly up from $112.5 million in Q3 2023, with gains in investment securities and wealth management revenue[173]. - Non-interest income for Q3 2024 was $121,147 thousand, up from $112,478 thousand in Q3 2023[190]. - The company reported a return on average common equity of 11.61% for Q3 2024, down from 13.35% in Q3 2023[190]. - The company recorded income tax expense of $62.7 million in the third quarter of 2024, compared to $60.7 million in the third quarter of 2023, with effective tax rates of 26.95% and 26.98%, respectively[224]. Loan Portfolio and Interest Income - The loan portfolio increased to $47.1 billion at September 30, 2024, up from $41.4 billion a year earlier, reflecting organic growth and $1.3 billion from the Macatawa acquisition[171]. - Net interest income rose to $502.6 million in Q3 2024, a 9% increase from $462.4 million in Q3 2023, driven by a $5.2 billion increase in average loans[172]. - Net interest income for Q3 2024 reached $502.6 million, up $32.0 million from Q2 2024 and $40.2 million from Q3 2023[196]. - Total average loans reached $45.92 billion in Q3 2024, representing 81% of total average earning assets, consistent with previous quarters[233]. - The total loans, net of unearned income, amounted to $34.59 billion as of September 30, 2024, with a significant portion subject to variable rates[244]. - The company reported a total of $28.47 billion in variable rate loans, indicating a strong exposure to interest rate fluctuations[244]. Assets and Deposits - Total assets reached $63.79 billion at the end of Q3 2024, a 15% increase from $55.56 billion a year earlier[176]. - Total deposits grew to $51.40 billion, up 14% from $44.99 billion in the previous year[176]. - Total average deposits for Q3 2024 were $48.9 billion, an increase of $4.9 billion, or 11%, from Q3 2023, driven by the Macatawa acquisition and enhanced marketing efforts[264]. - Total deposits increased by $6.4 billion, or 14%, to $51.4 billion as of September 30, 2024, compared to the same date in 2023[262]. - Brokered deposits accounted for 7.9% of total deposits as of September 30, 2024, down from 8.2% in 2023[266]. Non-Interest Expenses - Non-interest expense increased by 9% to $360.7 million in Q3 2024, primarily due to higher salaries and employee benefits[174]. - Non-interest expense for the three months ended September 30, 2024, increased by $30.6 million, or 9%, to $360.7 million compared to $330.1 million for the same period in 2023[218]. - Salaries and employee benefits for the three months ended September 30, 2024, totaled $211.3 million, an increase of $18.9 million, or 10%, from $192.3 million in the same period in 2023[218]. Credit Quality and Allowance for Losses - The allowance for credit losses is a critical accounting estimate, with the loan and held-to-maturity debt securities portfolios representing 80% of total assets[185]. - The allowance for credit losses at the end of the period was $435.7 million, compared to $399.2 million at the end of September 2023, indicating a proactive approach to managing credit risk[260]. - The community banking segment recorded a provision for credit losses of $20.5 million for the three months ended September 30, 2024, compared to $16.7 million for the same period in 2023[227]. - Non-performing loans at the end of the period were $179.7 million, up from $133.1 million at the end of September 2023, reflecting a significant increase in problem credits[256]. - The total non-performing loans reached $179.7 million as of September 30, 2024, compared to $174.3 million as of June 30, 2024[254]. Market and Economic Conditions - The company expects that changes in inflation will not have a material impact on its business compared to other industries[276]. - The company anticipates potential risks affecting its liquidity and loan portfolio performance due to economic conditions and events[278]. - Changes in interest rates could materially affect the company's net interest income and profitability[278]. - Competitive pressures in the financial services sector may impact the pricing of the company's loan and deposit products[278]. Strategic Focus and Growth - The company aims to identify and complete favorable acquisitions to enhance growth[278]. - The company is focused on using technology to meet customer demands and improve operational efficiencies[278]. - The company maintains a commitment to exceed the "Well Capitalized" levels established by the Federal Reserve Board for bank holding companies[273]. - The Company is focused on evaluating liquidity sources, including management of availability with the FHLB and FRB, to ensure sufficient funds for operations[275].

Financial Performance - Net income for the first nine months of 2024 was $509.7 million, or $7.67 per diluted common share, compared to $499.1 million, or $7.71 per diluted common share for the same period in 2023[1]. - Net income for Q3 2024 was $170.0 million, a 12% increase from $152.4 million in Q2 2024[49]. - Net income for the third quarter of 2024 was $170,001 thousand, reflecting a 11.3% increase from $152,388 thousand in the previous quarter[52]. - The company reported an income before taxes of $232,709,000 for Q3 2024, compared to $211,343,000 in Q2 2024, showing a growth of 10.1%[57]. - The return on average assets for the third quarter of 2024 was 1.11%, compared to 1.07% in the previous quarter[52]. - The common equity to assets ratio improved to 9.4% as of September 30, 2024, up from 8.6% a year earlier[52]. - Cash dividends declared per common share remained stable at $0.45 for the last three quarters, compared to $0.40 in the same period last year[52]. Loan and Deposit Growth - Total loans increased by approximately $2.4 billion in Q3 2024, including $1.3 billion from the Macatawa acquisition; excluding Macatawa, total loans increased by $1.1 billion or 10% annualized[4]. - Total deposits rose by approximately $3.4 billion in Q3 2024, with $2.3 billion from Macatawa; excluding Macatawa, total deposits increased by $1.1 billion or 9% annualized[4]. - Total loans reached $47,067,447 thousand, up 5.8% from $44,675,531 thousand in the previous quarter[52]. - Total deposits increased to $51,404,966 thousand, a rise of 7.8% from $48,049,026 thousand in the previous quarter[52]. - Total deposits rose to $51,404,966,000, reflecting a 28% increase from the previous quarter and a 14% increase year-over-year[60]. - Non-interest-bearing deposits remained at 21% of total deposits at the end of Q3 2024, increasing by $708 million compared to Q2 2024[5]. Interest Income and Margin - Net interest income increased to $502.6 million in Q3 2024, up from $470.6 million in Q2 2024, primarily due to average earning asset growth and the addition of Macatawa[6]. - The company anticipates net interest margin to remain in the 3.50% range in Q4 2024 and into 2025, supported by stable net interest margin and continued balance sheet growth[3]. - The net interest margin for the third quarter of 2024 was 3.49%, slightly down from 3.50% in the previous quarter[52]. - Total interest income for Q3 2024 was $908,604,000, an increase of 6.9% from $849,979,000 in Q2 2024[57]. - Net interest income after provision for credit losses for Q3 2024 was $480,249,000, up from $430,549,000 in Q2 2024, reflecting a growth of 11.5%[57]. Non-Interest Income and Expenses - Other income decreased by $5.1 million in Q3 2024 compared to Q2 2024, primarily due to a gain recognized in Q2 2024 from a loan sale transaction[33]. - Non-interest expenses totaled $360.7 million in Q3 2024, an increase of $20.3 million from $340.4 million in Q2 2024, with the Macatawa acquisition contributing approximately $10.1 million to this increase[35]. - Total Non-Interest Income for Q3 2024 was $113,147,000, a decrease of $8,000,000 or 7% compared to Q2 2024, but an increase of $669,000 or 1% compared to Q3 2023[90]. - Total non-interest expense for Q3 2024 was $360,687,000, an increase of $20,334,000 or 6% compared to Q2 2024, and an increase of $30,632,000 or 9% compared to Q3 2023[94]. Credit Quality and Allowance for Losses - Net charge-offs totaled $26.7 million in Q3 2024, a decrease from $30.0 million in Q2 2024, with net charge-offs as a percentage of average total loans at 23 basis points[25]. - Non-performing loans totaled $179.7 million, or 0.38% of total loans, at the end of Q3 2024, compared to $174.3 million, or 0.39% of total loans, at the end of Q2 2024[27]. - The allowance for credit losses was $436.2 million as of September 30, 2024, relatively unchanged from $437.6 million as of June 30, 2024[23]. - The allowance for loan losses slightly decreased to $360,279 thousand from $363,719 thousand, indicating a stable risk management approach[56]. - The provision for credit losses in Q3 2024 was $22,334,000, a decrease from $40,061,000 in Q2 2024, indicating improved credit quality[57]. Acquisitions and Strategic Initiatives - The acquisition of Macatawa is expected to enhance Wintrust's presence in the west Michigan market, leveraging a compatible management team and reputable brand[3]. - The company completed the acquisition of Macatawa on August 1, 2024, issuing approximately 4.7 million shares and recording goodwill of approximately $144.6 million[45]. - The company plans to expand its community bank subsidiaries and branch offices, indicating a focus on growth strategies[101]. Market and Economic Conditions - The Company faces potential risks including economic conditions affecting liquidity and loan portfolio performance, particularly in the event of a U.S. government debt default or rating downgrade[103]. - Changes in interest rates and market conditions could materially affect the Company's net interest income and profitability[103]. - The Company is subject to competitive pressures in the financial services sector, which may impact pricing and market share[103].

Financial Performance - Wintrust recorded net income of $152.4 million for Q2 2024, a decrease of 2% from $154.8 million in Q2 2023[169] - Net income for Q2 2024 was $152.4 million, a decrease of $2.4 million, or 2%, compared to Q2 2023, with diluted earnings per share of $2.32 versus $2.38 in the prior year[188] - The company reported a pre-tax income, excluding provision for credit losses, of $251.4 million for Q2 2024[188] - Return on average common equity decreased to 11.61% in Q2 2024 from 12.79% in Q2 2023[175] - Return on average common equity for Q2 2024 was 11.61%, down from 14.42% in Q2 2023[188] Income and Revenue - Net interest income rose to $470.6 million in Q2 2024, a 5% increase from $447.5 million in Q2 2023, driven by a $3.7 billion increase in average loans[171] - Non-interest income totaled $121.1 million in Q2 2024, up from $113.0 million in Q2 2023, primarily due to gains on the sale of premium finance receivables[172] - Non-interest income increased to $140.6 million in Q2 2024, compared to $121.1 million in Q1 2024 and $113.0 million in Q2 2023[188] - Total non-interest income rose by $40.9 million (19%) for the six months ended June 30, 2024, compared to the same period in 2023[204] - Total wealth management revenue rose by $6.4 million (10%) year-to-date, driven by increased asset management fees[205] Expenses - Non-interest expense increased by 6% to $340.4 million in Q2 2024, mainly due to higher salaries and employee benefits[173] - Non-interest expense for the three months ended June 30, 2024, increased by $19.7 million, or 6%, to $340.4 million compared to $320.6 million for the same period in 2023[218] - Salaries and employee benefits for the three months ended June 30, 2024, totaled $198.5 million, an increase of $13.6 million, or 7%, from $184.9 million in the same period in 2023[218] Assets and Deposits - Total assets reached $59.8 billion at June 30, 2024, a 10% increase from $54.3 billion at June 30, 2023[175] - Total deposits grew to $48.0 billion, reflecting a 9% increase compared to $44.0 billion in the previous year[175] - Total average deposits for Q2 2024 were $46.1 billion, an increase of $3.6 billion, or 8%, from Q2 2023, driven by enhanced marketing efforts[262] - Total average assets increased to $57.49 billion in Q2 2024, up from $52.60 billion in Q2 2023[231] Loan Portfolio - The loan portfolio increased to $44.7 billion at June 30, 2024, up from $42.1 billion at December 31, 2023, representing organic growth across several segments[170] - The total average loans amounted to $43.82 billion in Q2 2024, maintaining 81% of total average earning assets, consistent with the previous quarters[231] - The company originated approximately $5.5 billion in premium finance receivables in Q2 2024, up from $5.0 billion in Q2 2023[236] - The total commercial real estate loan portfolio reached $11.95 billion as of June 30, 2024, compared to $10.61 billion as of June 30, 2023, indicating a growth of approximately 12.6% year-over-year[245] Credit Quality - The allowance for credit losses is critical, with 81% of total assets in loans and held-to-maturity debt securities[184] - The allowance for credit losses at the end of the period was $437.1 million, up from $387.4 million at the end of June 30, 2023, reflecting a provision for credit losses of $61.6 million for the six months ended June 30, 2024[258] - Non-performing loans increased to $174.3 million at June 30, 2024, from $108.7 million at June 30, 2023, representing a significant rise in problem credits[254] - Total non-performing loans amounted to $174.3 million as of June 30, 2024, an increase from $148.4 million as of March 31, 2024[252] Market and Economic Conditions - The company expects that changes in inflation will not have a material impact on its business compared to other industries[274] - Economic conditions, including housing prices and job market fluctuations, may adversely affect the company's liquidity and loan portfolio performance[276] - The company faces risks related to changes in interest rates, which could materially affect its net interest income and profitability[276] - Competitive pressures in the financial services sector may impact the pricing of the company's loan and deposit products[276] Strategic Initiatives - The Company is focused on evaluating future acquisitions and growth strategies to enhance its market position[276] - The company plans to form additional de novo banks or branch offices as part of its growth strategy[276] - The liquidity management framework includes stress testing processes to ensure sufficient funds are available for customer needs[272] Shareholder Returns - The Company declared a quarterly cash dividend of $0.45 per common share in January and April 2024, an increase from $0.40 per share in the same months of 2023[270]

Financial Performance - Wintrust recorded net income of $187.3 million for Q1 2024, a 4% increase from $180.2 million in Q1 2023[166]. - Net income for Q1 2024 totaled $187.3 million, an increase of $7.1 million, or 4%, compared to Q1 2023[185]. - Net income per diluted common share for Q1 2024 was $2.89, compared to $2.80 for Q1 2023[185]. - The increase in net income was primarily due to higher net interest income, increased mortgage banking revenue, and a $20.0 million gain from the sale of the RBA division[186]. - The return on average common equity decreased to 14.42% in Q1 2024 from 15.67% in Q1 2023[172]. - Total average shareholders' equity was $5,440,457 million, up from $5,066,196 million in the previous year[178]. - Return on average common equity for the period was 14.42%, compared to 9.93% in the previous year[178]. - Return on average tangible common equity (non-GAAP) was 16.75%, up from 11.73% in the previous year[178]. Loan and Deposit Growth - The loan portfolio increased to $43.2 billion at March 31, 2024, up from $39.6 billion a year earlier, reflecting organic growth in various portfolios[167]. - Total deposits increased by 9% to $46.4 billion at March 31, 2024, from $42.7 billion in the same period last year[172]. - Total funding increased to $50.4 billion as of March 31, 2024, compared to $46.3 billion as of March 31, 2023[218]. - As of March 31, 2024, total loans net of unearned income amounted to $43,230.7 million, with fixed rate loans at $17,370.5 million and variable rate loans at $25,860.2 million[227]. - The commercial and commercial real estate loan portfolios totaled $25,136.9 million, with an allowance for credit losses of $392.6 million as of March 31, 2024, compared to $344.3 million as of March 31, 2023[229]. Income and Expenses - Net interest income for Q1 2024 was $464.2 million, a slight increase of 1% compared to $458.0 million in Q1 2023, with a net interest margin of 3.57%[168]. - Non-interest income rose to $140.6 million in Q1 2024, up from $107.8 million in Q1 2023, driven by a $20.0 million gain from the sale of the Retirement Benefits Advisors division[169]. - Non-interest expense increased by 11% to $333.1 million in Q1 2024, primarily due to higher salaries and employee benefits[170]. - Total non-interest expense for the first quarter of 2024 increased by $34.0 million, or 11%, to $333.1 million compared to $299.2 million in the same period of 2023[206]. - Salaries and employee benefits increased by $18.4 million, or 10%, primarily due to higher commissions and incentive compensation related to increased mortgage production[207]. Asset Growth - Total assets grew by 9% to $57.6 billion at March 31, 2024, compared to $52.9 billion a year earlier[172]. - The total assets of the company reached $55.60 billion in Q1 2024, up from $55.02 billion in Q4 2023 and $52.08 billion in Q1 2023[193]. - Average earning assets for Q1 2024 totaled $52.27 billion, compared to $51.51 billion in Q4 2023 and $48.81 billion in Q1 2023[193]. Credit Quality - The allowance for loan and unfunded lending-related commitment losses increased to 0.99% of total loans, up from 0.95% in the previous year[172]. - The allowance for credit losses at the end of the period was $427.175 million, up from $375.798 million in the previous year[242]. - Total non-performing loans amounted to $148.359 million as of March 31, 2024, compared to $139.030 million at the end of 2023[236]. - The percentage of total non-performing assets to total assets was 0.28% as of March 31, 2024, compared to 0.27% at the end of 2023[236]. - The provision for credit losses for the three months ended March 31, 2024, was $21.691 million, compared to $23.070 million for the same period in 2023[242]. Market and Economic Conditions - The company is focused on managing risks associated with changes in interest rates, which could materially affect its profitability[263]. - The company is facing competitive pressures that may impact the pricing of its loan and deposit products, potentially leading to reduced income[263]. - The company acknowledges the risks associated with technological changes that allow consumers to complete financial transactions without using a bank[265]. - The company is monitoring the impact of regulatory changes on its ability to market products and operate profitably in the mortgage business[265]. - The company is assessing the potential effects of the COVID-19 pandemic on its financial results and operations[265]. Strategic Initiatives - The Company announced the acquisition of Macatawa Bank Corporation, which had approximately $2.7 billion in assets and $2.4 billion in deposits as of December 31, 2023[259]. - The company plans to form additional de novo banks or branch offices as part of its growth strategy[263]. - The company is committed to enhancing its information technology systems to improve operational efficiencies and manage risks[265].