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 September 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 ___________________________ ...

[Executive Summary](index=1&type=section&id=Executive%20Summary) [Overall Performance](index=1&type=section&id=Overall%20Performance) Wintrust Financial Corporation reported record net income and pre-tax, pre-provision income for both the first nine months and the third quarter of 2025, demonstrating strong financial momentum driven by net interest income expansion and balance sheet growth Key Financial Performance Metrics | Metric | First Nine Months 2025 | First Nine Months 2024 | Change | Q3 2025 | Q2 2025 | Change | | :-------------------------------- | :--------------------- | :--------------------- | :----- | :------ | :------ | :----- | | Net Income | $600.8 million | $509.7 million | +17.9% | $216.3 million | $195.5 million | +10.6% | | Diluted EPS | $8.25 | $7.67 | +7.6% | $2.78 | $2.78 | 0% | | Pre-tax, Pre-provision Income (non-GAAP) | $884.1 million | $778.1 million | +13.6% | $317.8 million | $289.3 million | +9.8% | - Timothy S. Crane, President and CEO, highlighted continued momentum with **record net income**, **net interest income**, **strong balance sheet growth**, and **prudent net interest margin management**[4](index=4&type=chunk) [Q3 2025 Highlights](index=1&type=section&id=Q3%202025%20Highlights) The third quarter of 2025 saw significant growth in total loans, deposits, and assets, alongside an increase in net interest income. Earnings per diluted common share were impacted by one-time preferred stock related costs Q3 2025 Key Financial Changes | Metric | Q3 2025 vs Q2 2025 Change | | :-------------------------------- | :-------------------------- | | Total loans | +$1.0 billion (8% annualized) | | Total deposits | +$894.6 million (6% annualized) | | Total assets | +$646.3 million (4% annualized) | | Net interest income | +$20.3 million to $567.0 million | | Net interest margin (FTE, non-GAAP) | 3.50% (within expected range) | | Net gains on investment securities | $3.0 million (vs $650,000 in Q2 2025) | - Diluted EPS of **$2.78** was impacted by one-time recognition of prior issuance costs related to Preferred Stock Series D and E (**$14.0 million**, or **$0.21 per diluted common share**) and excess dividend for Preferred Stock Series F (**$4.9 million**, or **$0.07 per diluted common share**)[5](index=5&type=chunk) - Strong loan growth was diversified across all major portfolios, funded by deposit growth, resulting in a loans-to-deposits ratio of **91.8%**[6](index=6&type=chunk) - Credit quality remained strong with low net charge-offs and non-performing loans, and a core loan allowance for credit losses of **1.34%**[6](index=6&type=chunk) [Financial Performance Overview](index=9&type=section&id=Financial%20Performance%20Overview) [Key Operating Measures](index=13&type=section&id=Key%20Operating%20Measures) Wintrust's key operating measures for Q3 2025 showed strong sequential and year-over-year growth in net income, net revenue, and balance sheet items, while maintaining a stable net interest margin and improving efficiency Key Operating Measures (in thousands) | Metric | Sep 30, 2025 | Jun 30, 2025 | Sep 30, 2024 | % Change from Q2 2025 | % Change from Q3 2024 | | :----------------------------------- | :----------- | :----------- | :----------- | :-------------------- | :-------------------- | | Net income | $216,254 | $195,527 | $170,001 | 11% | 27% | | Net income per common share – Diluted | $2.78 | $2.78 | $2.47 | — | 13% | | Net revenue | $697,837 | $670,783 | $615,730 | 4% | 13% | | Net interest income | $567,010 | $546,694 | $502,583 | 4% | 13% | | Net interest margin | 3.48% | 3.52% | 3.49% | (4) bps | (1) bps | | Total assets | $69,629,638 | $68,983,318 | $63,788,424 | 4% (annualized) | 9% (annualized) | | Total loans | $52,063,482 | $51,041,679 | $47,067,447 | 8% (annualized) | 11% (annualized) | | Total deposits | $56,711,381 | $55,816,811 | $51,404,966 | 6% (annualized) | 10% (annualized) | - The net overhead ratio improved, decreasing by **12 basis points** sequentially and **17 basis points** year-over-year, indicating higher efficiency[42](index=42&type=chunk)[43](index=43&type=chunk) [Selected Financial Highlights](index=14&type=section&id=Selected%20Financial%20Highlights) A detailed look at Wintrust's financial condition and income statement data over several quarters and nine-month periods reveals consistent growth in assets, loans, and deposits, alongside improving profitability ratios Selected Financial Highlights (in thousands) | Metric | Sep 30, 2025 | Jun 30, 2025 | Mar 31, 2025 | Dec 31, 2024 | Sep 30, 2024 | | :----------------------------------- | :----------- | :----------- | :----------- | :----------- | :----------- | | Total assets | $69,629,638 | $68,983,318 | $65,870,066 | $64,879,668 | $63,788,424 | | Total loans | $52,063,482 | $51,041,679 | $48,708,390 | $48,055,037 | $47,067,447 | | Total deposits | $56,711,381 | $55,816,811 | $53,570,038 | $52,512,349 | $51,404,966 | | Net interest income (9M YTD) | $1,640,178 (2025) | - | - | - | $1,437,387 (2024) | | Net income (9M YTD) | $600,820 (2025) | - | - | - | $509,683 (2024) | | Return on average assets | 1.26% | 1.19% | 1.20% | 1.16% | 1.11% | | Return on average common equity | 11.58% | 12.07% | 12.21% | 11.82% | 11.63% | | Period-end loans to deposits ratio | 91.8% | 91.4% | 90.9% | 91.5% | 91.6% | | Common equity to assets ratio | 9.5% | 9.3% | 9.4% | 9.1% | 9.4% | [Detailed Financial Analysis](index=9&type=section&id=Detailed%20Financial%20Analysis) [Balance Sheet](index=9&type=section&id=Balance%20Sheet) Wintrust's balance sheet grew in Q3 2025, with total assets increasing by $646.3 million and total loans by $1.0 billion, driven by diversified growth across all major loan portfolios. Total liabilities increased due to strong organic deposit growth, maintaining a healthy loans-to-deposits ratio Balance Sheet Highlights (in millions) | Metric | Q3 2025 | Q2 2025 | Change (QoQ) | | :---------------- | :----------- | :----------- | :----------- | | Total assets | $69,629.6 | $68,983.3 | +$646.3 million | | Total loans | $52,063.5 | $51,041.7 | +$1.0 billion | | Total liabilities | $62,583.9 | $61,757.6 | +$826.3 million | | Total deposits | $56,711.4 | $55,816.8 | +$894.6 million | | Loans-to-deposits ratio | 91.8% | - | - | - The increase in loans was driven by growth across all major loan portfolios, and strong organic deposit growth was supported by diverse product offerings[16](index=16&type=chunk)[17](index=17&type=chunk) [Net Interest Income](index=9&type=section&id=Net%20Interest%20Income) Net interest income increased in Q3 2025, primarily due to significant average earning asset growth. However, the net interest margin experienced a slight decline, influenced by a decrease in loan yields and a minor increase in funding costs Net Interest Income and Margin Trends | Metric | Q3 2025 | Q2 2025 | Change (QoQ) | | :-------------------------------- | :----------- | :----------- | :----------- | | Net interest income | $567.0 million | $546.7 million | +$20.3 million | | Average earning asset growth | $2.4 billion (15% annualized) | - | - | | Net interest margin (GAAP) | 3.48% | 3.52% | (4) bps | | Net interest margin (FTE, non-GAAP) | 3.50% | 3.54% | (4) bps | | Yield on earning assets | 5.93% | 5.96% | (3) bps | | Loan yields | 6.44% | 6.48% | (4) bps | | Funding cost on interest-bearing deposits | 3.15% | 3.14% | +1 bp | [Asset Quality](index=9&type=section&id=Asset%20Quality) Asset quality remained stable in Q3 2025, with a slight decrease in the allowance for credit losses and a stable provision for credit losses. While net charge-offs increased, non-performing assets and loans improved, reflecting disciplined credit management and appropriate reserves Asset Quality Metrics (in millions) | Metric | Sep 30, 2025 | Jun 30, 2025 | Change (QoQ) | | :------------------------------------------------ | :----------- | :----------- | :----------- | | Allowance for credit losses | $454.6 million | $457.5 million | -$2.9 million | | Provision for credit losses | $21.8 million | $22.2 million | -$0.4 million | | Net charge-offs | $24.6 million | $13.3 million | +$11.3 million | | Net charge-offs as % of average total loans (annualized) | 19 bps | 11 bps | +8 bps | | Non-performing assets | $187.5 million | $212.5 million | -$25.0 million | | Non-performing assets as % of total assets | 0.27% | 0.31% | -0.04% | | Non-performing loans | $162.6 million | $188.8 million | -$26.2 million | | Non-performing loans as % of total loans | 0.31% | 0.37% | -0.06% | - Management believes the allowance for credit losses is appropriate, reflecting stable credit quality and an improved macroeconomic forecast, with qualitative additions for credit spreads due to future economic uncertainty[22](index=22&type=chunk)[23](index=23&type=chunk) [Non-Interest Income](index=11&type=section&id=Non-Interest%20Income) Non-interest income increased in Q3 2025, primarily driven by higher wealth management revenue, increased mortgage banking production, and significant net gains on investment securities Non-Interest Income Components (in millions) | Metric | Q3 2025 | Q2 2025 | Change (QoQ) | | :-------------------------------- | :----------- | :----------- | :----------- | | Total non-interest income | $130.8 million | $124.1 million | +$6.7 million | | Wealth management revenue | +$367,000 | - | - | | Mortgage banking revenue | $24.5 million | $23.2 million | +$1.3 million | | Net gains on investment securities | $3.0 million | $650,000 | +$2.35 million | - Wealth management revenue growth was driven by increased asset valuations and higher transactional brokerage business[28](index=28&type=chunk) - Mortgage banking revenue increased due to higher production revenue[29](index=29&type=chunk) - Net gains on investment securities were primarily from unrealized gains on equity investment securities[30](index=30&type=chunk) [Non-Interest Expense](index=11&type=section&id=Non-Interest%20Expense) Non-interest expense slightly decreased in Q3 2025, primarily due to lower professional fees and reduced acquisition-related costs, leading to an improved expense-to-asset ratio Non-Interest Expense Components (in millions) | Metric | Q3 2025 | Q2 2025 | Change (QoQ) | | :-------------------------------- | :----------- | :----------- | :----------- | | Total non-interest expense | $380.0 million | $381.5 million | -$1.5 million | | Non-interest expense as % of average assets | 2.21% | - | - | | Professional fees expense | $7.5 million | $9.2 million | -$1.8 million | | Macatawa Bank acquisition-related costs | $471,000 | $2.9 million | -$2.4 million | - The decrease in professional fees was primarily due to lower consulting services[33](index=33&type=chunk) [Income Taxes](index=11&type=section&id=Income%20Taxes) Income tax expense increased in Q3 2025, resulting in a slightly higher effective tax rate compared to the previous quarter Income Tax Metrics | Metric | Q3 2025 | Q2 2025 | Change (QoQ) | | :---------------- | :----------- | :----------- | :----------- | | Income tax expense | $79.8 million | $71.6 million | +$8.2 million | | Effective tax rate | 27.0% | 26.8% | +0.2% | [Business Segment Review](index=11&type=section&id=Business%20Segment%20Review) [Community Banking](index=11&type=section&id=Community%20Banking) The Community Banking segment expanded its commercial, commercial real estate, and residential real estate loan portfolios in Q3 2025, supported by solid loan pipelines and increased mortgage banking and service charges on deposit accounts - Community banking increased its commercial, commercial real estate, and residential real estate loan portfolios in the third quarter of 2025[37](index=37&type=chunk) Community Banking Revenue (in millions) | Metric | Q3 2025 | Q2 2025 | Change (QoQ) | | :-------------------------------- | :----------- | :----------- | :----------- | | Mortgage banking revenue | $24.5 million | $23.2 million | +$1.3 million | | Service charges on deposit accounts | $19.8 million | $19.5 million | +$0.3 million | - Gross commercial and commercial real estate loan pipelines remained solid, indicating expected continued loan growth in Q4 2025[38](index=38&type=chunk) [Specialty Finance](index=12&type=section&id=Specialty%20Finance) The Specialty Finance segment saw strong originations in insurance premium financing and increased leasing portfolio balances in Q3 2025, while outsourced administrative services revenue remained stable - Originations within the insurance premium financing receivables portfolios totaled **$5.5 billion** during Q3 2025, with average balances increasing by **$945.4 million** compared to Q2 2025[39](index=39&type=chunk) Leasing Division Portfolio Balances (in millions) | Leasing Division Portfolio Balances | Sep 30, 2025 | Jun 30, 2025 | | :-------------------------------- | :----------- | :----------- | | Capital leases | $2.8 billion | $2.8 billion | | Loans | $1.2 billion | $1.2 billion | | Equipment on operating leases | $301.0 million | $289.8 million | - Revenues from outsourced administrative services business were **$1.2 million** in Q3 2025, remaining relatively stable[39](index=39&type=chunk) [Wealth Management](index=12&type=section&id=Wealth%20Management) The Wealth Management segment experienced an increase in revenue in Q3 2025, with assets under administration reaching approximately $55.1 billion Wealth Management Metrics | Metric | Q3 2025 | | :-------------------------------- | :----------- | | Wealth management revenue | $37.2 million | | Assets under administration (Sep 30, 2025) | ~$55.1 billion | | Assets owned by Company and subsidiary banks | $8.8 billion (included in AUA) | - Wealth management revenue increased compared to Q2 2025[40](index=40&type=chunk) [Supplemental Financial Data](index=16&type=section&id=Supplemental%20Financial%20Data) [Consolidated Statements of Condition](index=16&type=section&id=Consolidated%20Statements%20of%20Condition) The consolidated statements of condition provide a detailed breakdown of Wintrust's assets, liabilities, and shareholders' equity over several quarters, illustrating the growth in total assets, loans, and deposits, and changes in equity components Consolidated Statements of Condition (in thousands) | (In thousands) | Sep 30, 2025 | Jun 30, 2025 | Mar 31, 2025 | Dec 31, 2024 | Sep 30, 2024 | | :----------------------------------- | :----------- | :----------- | :----------- | :----------- | :----------- | | **Assets:** | | | | | | | Total assets | $69,629,638 | $68,983,318 | $65,870,066 | $64,879,668 | $63,788,424 | | Net loans | $51,676,860 | $50,650,025 | $48,330,183 | $47,691,020 | $46,707,168 | | Available-for-sale securities | $5,274,124 | $4,885,715 | $4,220,305 | $4,141,482 | $3,912,232 | | **Liabilities:** | | | | | | | Total deposits | $56,711,381 | $55,816,811 | $53,570,038 | $52,512,349 | $51,404,966 | | Non-interest-bearing deposits | $10,952,146 | $10,877,166 | $11,201,859 | $11,410,018 | $10,739,132 | | Interest-bearing deposits | $45,759,235 | $44,939,645 | $42,368,179 | $41,102,331 | $40,665,834 | | **Shareholders' Equity:** | | | | | | | Total shareholders' equity | $7,045,757 | $7,225,696 | $6,600,537 | $6,344,297 | $6,399,714 | | Preferred stock | $425,000 | $837,500 | $412,500 | $412,500 | $412,500 | | Retained earnings | $4,356,367 | $4,200,923 | $4,045,854 | $3,897,164 | $3,748,715 | [Consolidated Statements of Income](index=17&type=section&id=Consolidated%20Statements%20of%20Income) The consolidated statements of income detail Wintrust's revenue and expense components, showing growth in net interest income and non-interest income, leading to increased net income for both the quarter and year-to-date periods Consolidated Statements of Income (in thousands) | (Dollars in thousands) | Q3 2025 | Q2 2025 | Q3 2024 | 9M 2025 | 9M 2024 | | :----------------------------------- | :----------- | :----------- | :----------- | :----------- | :----------- | | Total interest income | $963,834 | $920,908 | $908,604 | $2,771,707 | $2,564,096 | | Total interest expense | $396,824 | $374,214 | $406,021 | $1,131,529 | $1,126,709 | | Net interest income | $567,010 | $546,694 | $502,583 | $1,640,178 | $1,437,387 | | Provision for credit losses | $21,768 | $22,234 | $22,334 | $67,965 | $84,068 | | Total non-interest income | $130,827 | $124,089 | $113,147 | $371,550 | $374,874 | | Total non-interest expense | $380,028 | $381,461 | $360,687 | $1,127,579 | $1,034,185 | | Income before taxes | $296,041 | $267,088 | $232,709 | $816,184 | $694,008 | | Income tax expense | $79,787 | $71,561 | $62,708 | $215,364 | $184,325 | | Net income | $216,254 | $195,527 | $170,001 | $600,820 | $509,683 | | Net income per common share - Diluted | $2.78 | $2.78 | $2.47 | $8.25 | $7.67 | [Loan Portfolio Mix and Growth Rates](index=18&type=section&id=Loan%20Portfolio%20Mix%20and%20Growth%20Rates) Wintrust's total loan portfolio grew significantly, with notable annualized increases in both core and niche loan segments, reflecting diversified growth across various categories Loan Portfolio Mix and Growth Rates (in thousands) | Loan Category | Sep 30, 2025 (in thousands) | % Growth from Jun 30, 2025 (annualized) | % Growth from Sep 30, 2024 | | :----------------------------------- | :-------------------------- | :-------------------------------------- | :------------------------- | | Total mortgage loans held-for-sale | $333,883 | 45% | (28)% | | Total core loans | $30,610,433 | 9% | 8% | | Commercial and industrial | $7,135,083 | 6% | 5% | | Leases | $2,834,563 | 11% | 16% | | Residential real estate loans for investment | $4,019,046 | 21% | 24% | | Total niche loans | $21,453,049 | 6% | 15% | | U.S. property & casualty insurance (Premium Finance) | $7,502,901 | 7% | 20% | | Life insurance (Premium Finance) | $8,758,553 | 12% | 10% | | Total loans, net of unearned income | $52,063,482 | 8% | 11% | [Deposit Portfolio Mix and Growth Rates](index=19&type=section&id=Deposit%20Portfolio%20Mix%20and%20Growth%20Rates) Total deposits grew by 6% annualized in Q3 2025, with money market accounts showing the strongest growth. The deposit mix remained relatively stable, with non-interest-bearing deposits comprising 19% of the total Deposit Portfolio Mix and Growth Rates (in thousands) | Deposit Category | Sep 30, 2025 (in thousands) | % Growth from Jun 30, 2025 (annualized) | % Growth from Sep 30, 2024 | Mix (Sep 30, 2025) | | :----------------------------------- | :-------------------------- | :-------------------------------------- | :------------------------- | :----------------- | | Non-interest-bearing | $10,952,146 | 3% | 2% | 19% | | NOW and interest bearing demand deposits | $6,710,919 | (5)% | 23% | 12% | | Wealth management deposits | $1,600,735 | 1% | 23% | 3% | | Money market | $20,270,382 | 14% | 14% | 36% | | Savings | $6,758,743 | 6% | 9% | 12% | | Time certificates of deposit | $10,418,456 | 3% | 4% | 18% | | Total deposits | $56,711,381 | 6% | 10% | 100% | [Interest Rate Sensitivity](index=24&type=section&id=Interest%20Rate%20Sensitivity) Wintrust actively manages its interest rate exposure, with the majority of its variable rate loan portfolio tied to SOFR and CMT indices. The company's net interest income sensitivity to rate changes has remained relatively neutral due to strategic actions like derivative instruments and originating longer-term fixed-rate loans Net Interest Income Sensitivity Analysis | Scenario | Sep 30, 2025 | Jun 30, 2025 | Mar 31, 2025 | Dec 31, 2024 | Sep 30, 2024 | | :-------------------- | :----------- | :----------- | :----------- | :----------- | :----------- | | **Static Shock Scenario** | | | | | | | +200 Basis Points | (2.3)% | (1.5)% | (1.8)% | (1.6)% | 1.2% | | +100 Basis Points | (0.8)% | (0.4)% | (0.6)% | (0.6)% | 1.1% | | -100 Basis Points | 0.0% | (0.2)% | (0.2)% | (0.3)% | 0.4% | | -200 Basis Points | (0.4)% | (1.2)% | (1.2)% | (1.5)% | (0.9)% | | **Ramp Scenario** | | | | | | | +200 Basis Points | (0.2)% | 0.0% | 0.2% | (0.2)% | 1.6% | | +100 Basis Points | (0.1)% | 0.0% | 0.2% | (0.0)% | 1.2% | | -100 Basis Points | 0.1% | (0.1)% | (0.1)% | 0.0% | 0.7% | | -200 Basis Points | (0.1)% | (0.4)% | (0.5)% | (0.3)% | 0.5% | - The majority of the Company's variable rate loan portfolio (**$17.5 billion**) is tied to one-month SOFR and (**$7.3 billion**) to twelve-month CMT, which do not always mirror Prime rate changes[76](index=76&type=chunk) - Management has used derivative instruments (collars, floors, receive fixed swaps) and originated more longer-term fixed-rate loans to hedge variable rate loan exposures and reposition interest rate sensitivity[70](index=70&type=chunk) [Allowance for Credit Losses](index=27&type=section&id=Allowance%20for%20Credit%20Losses) The allowance for credit losses slightly decreased in Q3 2025, with a stable provision. Net charge-offs increased, primarily in the commercial segment, but overall allowance levels are considered appropriate by management Allowance for Credit Losses Trends (in thousands) | (Dollars in thousands) | Sep 30, 2025 | Jun 30, 2025 | Mar 31, 2025 | Dec 31, 2024 | Sep 30, 2024 | | :----------------------------------- | :----------- | :----------- | :----------- | :----------- | :----------- | | Allowance for credit losses at period end | $454,586 | $457,461 | $448,387 | $437,060 | $436,193 | | Provision for credit losses | $21,768 | $22,234 | $23,963 | $16,979 | $22,334 | | Total charge-offs | $28,846 | $18,495 | $17,449 | $19,731 | $31,018 | | Total recoveries | $4,291 | $5,155 | $4,809 | $3,806 | $4,283 | | Net charge-offs | ($24,555) | ($13,340) | ($12,640) | ($15,925) | ($26,735) | | Annualized net charge-offs as % of total loans | 0.19% | 0.11% | 0.11% | 0.13% | 0.23% | | Allowance for loan losses as % of loans at period end | 0.74% | 0.77% | 0.78% | 0.76% | 0.77% | Allowance for Credit Losses by Loan Portfolio (Sep 30, 2025) | Allowance by Loan Portfolio (Sep 30, 2025) | Recorded Investment | Calculated Allowance | % of category's balance | | :----------------------------------- | :------------------ | :------------------- | :---------------------- | | Commercial | $16,544,342 | $189,476 | 1.15% | | Commercial real estate | $13,619,207 | $230,477 | 1.69% | | Total core loans | $30,610,433 | $408,780 | 1.34% | | Total niche loans | $21,453,049 | $45,411 | 0.21% | [Non-Performing Assets](index=30&type=section&id=Non-Performing%20Assets) Non-performing assets and loans improved in Q3 2025, with a decrease in both non-accrual loans and total non-performing loans. Other real estate owned (OREO) saw a slight increase Non-Performing Assets Trends (in thousands) | (Dollars in thousands) | Sep 30, 2025 | Jun 30, 2025 | Mar 31, 2025 | Dec 31, 2024 | Sep 30, 2024 | | :----------------------------------- | :----------- | :----------- | :----------- | :----------- | :----------- | | Total non-performing loans | $162,632 | $188,838 | $172,390 | $170,823 | $179,687 | | Total non-performing assets | $187,464 | $212,453 | $195,015 | $193,939 | $193,369 | | Non-performing loans as % of total loans | 0.31% | 0.37% | 0.35% | 0.36% | 0.38% | | Non-performing assets as % of total assets | 0.27% | 0.31% | 0.30% | 0.30% | 0.30% | | Other real estate owned | $24,832 | $23,615 | $22,625 | $23,116 | $13,682 | | Allowance for loan losses and unfunded lending-related commitments losses as % of non-accrual loans | 303.67% | 262.71% | 296.25% | 282.33% | 270.53% | Non-Performing Loans Rollforward (QoQ) (in thousands) | Non-Performing Loans Rollforward (QoQ) | Sep 30, 2025 | Jun 30, 2025 | | :----------------------------------- | :----------- | :----------- | | Balance at beginning of period | $188,838 | $172,390 | | Additions from becoming non-performing | $34,805 | $48,651 | | Return to performing status | ($3,399) | ($6,896) | | Payments received | ($28,052) | ($5,602) | | Charge-offs, net | ($21,526) | ($11,734) | | Balance at end of period | $162,632 | $188,838 | [Mortgage Banking](index=34&type=section&id=Mortgage%20Banking) Mortgage banking revenue increased in Q3 2025, driven by higher production revenue and an improved production margin. Originations for sale and investment showed mixed trends, while loans serviced for others remained stable Mortgage Banking Performance (in thousands) | Metric | Q3 2025 | Q2 2025 | Change (QoQ) | | :----------------------------------- | :----------- | :----------- | :----------- | | Total mortgage banking revenue | $24,451 | $23,170 | +$1,281 | | Production revenue | $15,388 | $13,380 | +$2,008 | | Production margin | 1.95% | 2.07% | -0.12% | | Total originations for sale | $643,393 | $681,546 | -$38,153 | | Total originations for investment | $351,012 | $422,926 | -$71,914 | | Loans serviced for others | $12,524,131 | $12,470,924 | +$53,207 | | MSRs, at fair value | $190,938 | $193,061 | -$2,123 | Mortgage Banking Performance (Nine Months Ended, in thousands) | Metric (Nine Months Ended) | Sep 30, 2025 | Sep 30, 2024 | Change (YoY) | | :----------------------------------- | :----------- | :----------- | :----------- | | Total mortgage banking revenue | $68,150 | $72,761 | -$4,611 | | Production revenue | $38,709 | $41,538 | -$2,829 | | Total originations for sale | $1,785,392 | $1,964,576 | -$179,184 | | Total originations for investment | $991,115 | $663,561 | +$327,554 | [Non-GAAP Financial Measures/Ratios](index=37&type=section&id=Non-GAAP%20Financial%20Measures/Ratios) Wintrust provides several non-GAAP financial measures to offer a more meaningful view of its performance, including taxable-equivalent net interest income and margin, efficiency ratio, tangible common equity ratios, and pre-tax income excluding provision for credit losses. These reconciliations highlight adjustments for tax-exempt income and intangible assets - Non-GAAP measures are used by management to evaluate performance and include taxable-equivalent net interest income/margin, efficiency ratio, tangible common equity ratio, tangible book value per common share, return on average tangible common equity, and pre-tax income, excluding provision for credit losses[94](index=94&type=chunk)[95](index=95&type=chunk) Non-GAAP Financial Metrics (in thousands) | Non-GAAP Metric | Q3 2025 | Q2 2025 | Q3 2024 | 9M 2025 | 9M 2024 | | :----------------------------------- | :----------- | :----------- | :----------- | :----------- | :----------- | | Net interest income (non-GAAP, FTE) | $569,839 | $549,574 | $505,727 | $1,648,786 | $1,446,207 | | Net interest margin (non-GAAP, FTE) | 3.50% | 3.54% | 3.51% | 3.53% | 3.54% | | Efficiency ratio (non-GAAP) | 54.47% | 56.68% | 58.58% | 56.00% | 56.80% | | Total tangible common shareholders' equity (non-GAAP) | $5,717,821 | $5,479,557 | $5,062,568 | - | - | | Tangible common equity ratio (non-GAAP) | 8.3% | 8.0% | 8.1% | - | - | | Tangible book value per common share (non-GAAP) | $85.39 | $81.86 | $76.15 | - | - | | Return on average tangible common equity (non-GAAP) | 13.74% | 14.44% | 13.92% | 14.28% | 14.69% | | Pre-tax income, excluding provision for credit losses (non-GAAP) | $317,809 | $289,322 | $255,043 | $884,149 | $778,076 | | Net income per common share - Diluted (non-GAAP, adjusted for non-recurring preferred stock impact) | $3.06 | $2.78 | $2.47 | $8.53 | $7.67 | [Company Information and Forward-Looking Statements](index=40&type=section&id=Company%20Information%20and%20Forward-Looking%20Statements) [Wintrust Subsidiaries](index=40&type=section&id=Wintrust%20Subsidiaries) Wintrust Financial Corporation operates as a financial holding company with 16 community bank subsidiaries and various non-bank businesses offering specialized financial services across multiple regions - Wintrust operates **16 community bank subsidiaries** in the greater Chicago, southern Wisconsin, west Michigan, northwest Indiana, and southwest Florida market areas[100](index=100&type=chunk) - Non-bank businesses include: - FIRST Insurance Funding and Wintrust Life Finance (commercial and life insurance loans) - First Insurance Funding of Canada (Canadian commercial insurance loans) - Tricom, Inc. (accounts receivable financing and outsourced administrative services for temporary staffing) - Wintrust Mortgage (residential mortgages origination and sale) - Wintrust Investments, LLC (private client and brokerage services) - Great Lakes Advisors LLC (money management and advisory services) - Wintrust Private Trust Company, N.A. (trust and investment services) - Wintrust Asset Finance (direct leasing) - CDEC (Qualified Intermediary services for tax-deferred like-kind exchanges)[102](index=102&type=chunk) [Forward-Looking Statements](index=40&type=section&id=Forward-Looking%20Statements) This section outlines various risks and uncertainties that could cause actual results to differ materially from forward-looking statements, covering economic conditions, credit quality, market volatility, competition, regulatory changes, and operational risks - Forward-looking statements are based on management's expectations and projections but involve risks and uncertainties that are difficult to predict[101](index=101&type=chunk) - Economic conditions (housing prices, job market, government shutdowns) and their impact on liquidity and loan portfolios - Extent of defaults and losses on the loan portfolio, requiring increases in allowance for credit losses - Changes in interest rates, capital markets, and other market indices affecting liquidity and asset/liability values - Competitive pressures in financial services affecting pricing and market share - Failure to identify and complete favorable acquisitions or unexpected losses from acquisitions - Security breaches, cyberattacks, and failures of information technology systems or third-party vendors - Legislative or regulatory changes, including heightened capital requirements and increased FDIC insurance premiums - Fluctuations in the stock market impacting wealth management and brokerage operations[103](index=103&type=chunk)[104](index=104&type=chunk)[107](index=107&type=chunk) [Conference Call, Webcast and Replay](index=42&type=section&id=Conference%20Call,%20Webcast%20and%20Replay) Details for accessing the conference call, webcast, and replay for Wintrust's Q3 and year-to-date 2025 earnings results are provided, including registration and website links - A conference call for Q3 and year-to-date 2025 earnings results will be held on Tuesday, October 21, 2025, at **10:00 a.m. (CDT)**[106](index=106&type=chunk) - Registration for the call and access to the audio-only webcast and replay, along with an accompanying slide presentation, are available on the Wintrust website (www.wintrust.com) under Investor Relations[106](index=106&type=chunk)

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 ________________________________ ...

[Executive Summary & Highlights](index=1&type=section&id=Executive%20Summary%20%26%20Highlights) [Second Quarter and Year-to-Date 2025 Financial Results](index=1&type=section&id=1.1%20Second%20Quarter%20and%20Year-to-Date%202025%20Financial%20Results) Wintrust Financial Corporation reported record net income for both the second quarter and the first six months of 2025, demonstrating strong financial performance. Diluted EPS also saw significant increases compared to the prior year and previous quarter. Key Financial Results (Q2 2025 vs. Q1 2025 & H1 2025 vs. H1 2024) | Metric | Q2 2025 | Q1 2025 | Change (QoQ) | H1 2025 | H1 2024 | Change (YoY) | | :-------------------------------- | :------ | :------ | :----------- | :------ | :------ | :----------- | | Net Income (millions) | $195.5 | $189.0 | +$6.5 (+3.4%) | $384.6 | $339.7 | +$44.9 (+13.2%) | | Diluted EPS | $2.78 | $2.69 | +$0.09 (+3.3%) | $5.47 | $5.21 | +$0.26 (+5.0%) | | Pre-tax, Pre-provision Income (non-GAAP, millions) | $289.3 | $277.0 | +$12.3 (+4.4%) | $566.3 | $523.0 | +$43.3 (+8.3%) | [CEO Commentary and Business Outlook](index=1&type=section&id=1.2%20CEO%20Commentary%20and%20Business%20Outlook) CEO Timothy S. Crane highlighted record results driven by balance sheet growth and a stable net interest margin. He noted strong, diversified loan and deposit growth, prudent credit management, and expectations for continued positive momentum and net interest income growth in the third quarter. - Record results in Q2 2025 were driven by balance sheet growth and a stable net interest margin of **3.54%**[4](index=4&type=chunk) - Loan growth is expected to be in the **mid-to-high single digits** in the second half of the year, maintaining conservative credit standards[6](index=6&type=chunk) - The Company expects strong momentum to continue into the third quarter, with balance sheet growth and disciplined expense control enhancing franchise value[6](index=6&type=chunk) [Second Quarter 2025 Key Highlights](index=1&type=section&id=1.3%20Second%20Quarter%202025%20Key%20Highlights) The second quarter of 2025 saw significant increases in total loans, deposits, and assets, alongside growth in net interest income and wealth management revenue. Non-interest income was positively impacted by higher mortgage banking revenue, while non-interest expenses increased due to seasonal advertising and acquisition-related costs. Q2 2025 Key Financial Highlights (vs. Q1 2025) | Metric | Q2 2025 | Q1 2025 | Change (QoQ) | | :-------------------------------- | :------ | :------ | :----------- | | Total Loans (increase) | $2.3 billion | - | 19% annualized | | Total Deposits (increase) | $2.2 billion | - | 17% annualized | | Total Assets (increase) | $3.1 billion | - | 19% annualized | | Net Interest Income | $546.7 million | $526.5 million | +$20.2 million | | Net Interest Margin | 3.52% | - | -2 bps (fully taxable-equivalent) | | Wealth Management Revenue | $36.8 million | $34.0 million | +$2.8 million | | Mortgage Banking Revenue | $23.2 million | $20.5 million | +$2.7 million | | Net Gains on Investment Securities | $0.65 million | $3.2 million | -$2.55 million | | Advertising and Marketing Expense | $18.8 million | $12.3 million | +$6.5 million | | Macatawa Bank Acquisition Costs | $2.9 million | $2.7 million | +$0.2 million | | Provision for Credit Losses | $22.2 million | $24.0 million | -$1.8 million | | Net Charge-offs | $13.3 million | $12.6 million | +$0.7 million | [Financial Performance Overview](index=10&type=section&id=Financial%20Performance%20Overview) [Balance Sheet Summary](index=10&type=section&id=2.1%20Balance%20Sheet%20Summary) Wintrust's balance sheet showed significant growth in total assets, loans, and deposits during Q2 2025. The Company also completed a preferred stock issuance to redeem existing preferred stock, impacting capital ratios. Balance Sheet Changes (Q2 2025 vs. Q1 2025) | Metric | Q2 2025 | Q1 2025 | Change | | :-------------------- | :------ | :------ | :----- | | Total Assets | $68.98 billion | $65.87 billion | +$3.1 billion | | Total Loans | $51.04 billion | $48.71 billion | +$2.3 billion | | Total Liabilities | $61.76 billion | $59.27 billion | +$2.5 billion | | Total Deposits | $55.82 billion | $53.57 billion | +$2.2 billion | | Loans-to-Deposits Ratio | 91.4% | - | - | | Series F Preferred Stock Issuance | $425 million | - | - | | Series D and E Preferred Stock Redemption | - | - | $412.5 million (July 15, 2025) | | Estimated Tier 1 Capital Ratio (pro forma) | 10.8% | - | - | | Estimated Total Capital Ratio (pro forma) | 12.3% | - | - | | Estimated Tier 1 Leverage Ratio (pro forma) | 9.6% | - | - | [Net Interest Income Analysis](index=10&type=section&id=2.2%20Net%20Interest%20Income%20Analysis) Net interest income increased in Q2 2025, primarily driven by growth in average earning assets. The net interest margin remained largely stable, with a slight decline due to lower loan yields partially offset by reduced funding costs on interest-bearing deposits. Net Interest Income and Margin (Q2 2025 vs. Q1 2025) | Metric | Q2 2025 | Q1 2025 | Change | | :-------------------------------- | :------ | :------ | :----- | | Net Interest Income | $546.7 million | $526.5 million | +$20.2 million | | Average Earning Asset Growth | $1.9 billion | - | 12% annualized | | Net Interest Margin (GAAP) | 3.52% | 3.54% | -2 bps | | Net Interest Margin (FTE, non-GAAP) | 3.54% | 3.56% | -2 bps | | Yield on Earning Assets | - | - | -2 bps | | Loan Yields | - | - | -5 bps | | Funding Cost on Interest-Bearing Deposits | - | - | -2 bps | [Asset Quality Review](index=10&type=section&id=2.3%20Asset%20Quality%20Review) The allowance for credit losses increased in Q2 2025, while the provision for credit losses decreased due to an improved macroeconomic outlook, despite portfolio growth. Net charge-offs saw a slight increase but remained stable as a percentage of average total loans. Non-performing assets and loans also remained relatively stable. Asset Quality Metrics (Q2 2025 vs. Q1 2025) | Metric | Q2 2025 | Q1 2025 | Change | | :-------------------------------- | :------ | :------ | :----- | | Allowance for Credit Losses (period end) | $457.5 million | $448.4 million | +$9.1 million | | Provision for Credit Losses | $22.2 million | $24.0 million | -$1.8 million | | Net Charge-offs | $13.3 million | $12.6 million | +$0.7 million | | Net Charge-offs (% of average total loans, annualized) | 11 bps | 11 bps | 0 bps | | Non-performing Assets | $212.5 million | $195.0 million | +$17.5 million | | Non-performing Assets (% of total assets) | 0.31% | 0.30% | +0.01% | | Non-performing Loans | $188.8 million | $172.4 million | +$16.4 million | | Non-performing Loans (% of total loans) | 0.37% | 0.35% | +0.02% | - Management believes the allowance for credit losses is appropriate, and the Company maintains strong credit standards with low levels of net charge-offs and non-performing loans[6](index=6&type=chunk)[27](index=27&type=chunk) [Non-Interest Income Performance](index=11&type=section&id=2.4%20Non-Interest%20Income%20Performance) Total non-interest income increased in Q2 2025, primarily driven by higher wealth management and mortgage banking revenues. Gains from covered call options also contributed positively, while net gains on investment securities decreased. Non-Interest Income (Q2 2025 vs. Q1 2025) | Metric | Q2 2025 | Q1 2025 | Change | | :-------------------------------- | :------ | :------ | :----- | | Total Non-Interest Income | $124.1 million | $116.6 million | +$7.5 million | | Wealth Management Revenue | $36.8 million | $34.0 million | +$2.8 million | | Mortgage Banking Revenue | $23.2 million | $20.5 million | +$2.7 million | | Fees from Covered Call Options | $5.6 million | $3.4 million | +$2.2 million | | Net Gains on Investment Securities | $0.65 million | $3.2 million | -$2.55 million | - Wealth management revenue increase was driven by higher asset valuations and increased activity following a system transition[32](index=32&type=chunk) - Mortgage banking revenue increase was due to higher origination volumes and improved production margin[33](index=33&type=chunk) [Non-Interest Expense Management](index=11&type=section&id=2.5%20Non-Interest%20Expense%20Management) Total non-interest expense increased in Q2 2025, mainly due to higher salaries and employee benefits, and increased advertising and marketing expenses. Acquisition-related costs for Macatawa Bank also contributed to the rise. Non-Interest Expense (Q2 2025 vs. Q1 2025) | Metric | Q2 2025 | Q1 2025 | Change | | :-------------------------------- | :------ | :------ | :----- | | Total Non-Interest Expense | $381.5 million | $366.1 million | +$15.4 million | | Non-Interest Expense (% of average assets) | 2.32% | 2.32% | Stable | | Salaries and Employee Benefits | - | - | +$8.0 million | | Advertising and Marketing Expenses | $18.8 million | $12.3 million | +$6.5 million | | Macatawa Bank Acquisition-Related Costs | $2.9 million | $2.7 million | +$0.2 million | - Increase in salaries and employee benefits was driven by higher health insurance claims and increased commissions from mortgage originations and wealth management[38](index=38&type=chunk) - Advertising and marketing expenses were seasonally higher due to planned sports and community sponsorship events[39](index=39&type=chunk) [Income Taxes](index=12&type=section&id=2.6%20Income%20Taxes) Income tax expense increased in Q2 2025, resulting in a higher effective tax rate compared to the previous quarter. This was partially influenced by the tax effects of share-based compensation. Income Tax Data (Q2 2025 vs. Q1 2025) | Metric | Q2 2025 | Q1 2025 | Change | | :-------------------------------- | :------ | :------ | :----- | | Income Tax Expense | $71.6 million | $64.0 million | +$7.6 million | | Effective Tax Rate | 26.79% | 25.30% | +1.49% | | Net Excess Tax Benefits (share-based compensation) | $80,000 | $3.7 million | -$3.62 million | [Business Segment Performance](index=12&type=section&id=Business%20Segment%20Performance) [Community Banking](index=12&type=section&id=3.1%20Community%20Banking) The Community Banking segment expanded its commercial, commercial real estate, and residential real estate loan portfolios in Q2 2025. Mortgage banking revenue increased, and service charges on deposit accounts remained stable, with strong loan pipelines indicating continued growth. - Community banking increased commercial, commercial real estate, and residential real estate loan portfolios in Q2 2025[43](index=43&type=chunk) Community Banking Revenue (Q2 2025 vs. Q1 2025) | Metric | Q2 2025 | Q1 2025 | Change | | :-------------------------------- | :------ | :------ | :----- | | Mortgage Banking Revenue | $23.2 million | $20.5 million | +$2.6 million | | Service Charges on Deposit Accounts | $19.5 million | $19.4 million | +$0.1 million | - Gross commercial and commercial real estate loan pipelines remained solid, indicating momentum for continued loan growth in Q3 2025[44](index=44&type=chunk) [Specialty Finance](index=12&type=section&id=3.2%20Specialty%20Finance) The Specialty Finance segment saw strong originations in insurance premium financing receivables and increased portfolio balances in leasing divisions. Revenues from outsourced administrative services remained stable. - Originations within insurance premium financing receivables portfolios totaled **$6.1 billion** in Q2 2025, with average balances increasing by **$776.6 million** QoQ[45](index=45&type=chunk) Leasing Divisions Portfolio Balances (Q2 2025 vs. Q1 2025) | Metric | Jun 30, 2025 | Mar 31, 2025 | Change | | :-------------------------------- | :----------- | :----------- | :----- | | Capital Leases | $2.8 billion | $2.7 billion | +$0.1 billion | | Loans | $1.2 billion | $1.1 billion | +$0.1 billion | | Equipment on Operating Leases | $289.8 million | $280.5 million | +$9.3 million | - Revenues from outsourced administrative services were **$1.3 million** in Q2 2025, stable compared to Q1 2025[45](index=45&type=chunk) [Wealth Management](index=12&type=section&id=3.3%20Wealth%20Management) The Wealth Management segment reported increased revenue in Q2 2025 and maintained substantial assets under administration, offering a comprehensive suite of services. Wealth Management Metrics (Q2 2025 vs. Q1 2025) | Metric | Q2 2025 | Q1 2025 | Change | | :-------------------------------- | :------ | :------ | :----- | | Wealth Management Revenue | $36.8 million | - | Increase | | Assets Under Administration (period end) | $53.2 billion | - | - | | Assets Owned by Company/Subsidiary Banks (within AUA) | $8.9 billion | - | - | [Strategic Initiatives](index=12&type=section&id=Strategic%20Initiatives) [Business Combination: Macatawa Bank Acquisition](index=12&type=section&id=4.1%20Business%20Combination%3A%20Macatawa%20Bank%20Acquisition) Wintrust completed the acquisition of Macatawa Bank on August 1, 2024, expanding its presence in Michigan. The acquisition involved issuing common stock and added significant assets, deposits, and loans to Wintrust's portfolio, resulting in recorded goodwill. - Acquisition of Macatawa Bank completed on **August 1, 2024**, expanding operations in Kent, Ottawa, and northern Allegan counties in Michigan[47](index=47&type=chunk) - Approximately **4.7 million shares** of common stock were issued in conjunction with the acquisition[47](index=47&type=chunk) Macatawa Bank Fair Values at Acquisition (August 1, 2024) | Metric | Amount | | :-------------------- | :----- | | Assets | $2.9 billion | | Deposits | $2.3 billion | | Loans | $1.3 billion | | Goodwill Recorded (as of Jun 30, 2025) | $142.1 million | [Detailed Financial Data and Ratios](index=13&type=section&id=Detailed%20Financial%20Data%20and%20Ratios) [Key Operating Measures](index=13&type=section&id=5.1%20Key%20Operating%20Measures) This section presents Wintrust's key operating measures and growth rates for Q2 2025, comparing them to the previous quarter and the same quarter last year, highlighting significant increases in net income, revenue, and balance sheet items. Key Operating Measures (Q2 2025 vs. Q1 2025 & Q2 2024) | Metric | Jun 30, 2025 | Mar 31, 2025 | Jun 30, 2024 | % Change (QoQ) | % Change (YoY) | | :-------------------------------- | :----------- | :----------- | :----------- | :------------- | :------------- | | Net income (thousands) | $195,527 | $189,039 | $152,388 | 3% | 28% | | Pre-tax income, excluding provision for credit losses (non-GAAP, thousands) | $289,322 | $277,018 | $251,404 | 4% | 15% | | Net income per common share – Diluted | $2.78 | $2.69 | $2.32 | 3% | 20% | | Cash dividends declared per common share | $0.50 | $0.50 | $0.45 | — | 11% | | Net revenue (thousands) | $670,783 | $643,108 | $591,757 | 4% | 13% | | Net interest income (thousands) | $546,694 | $526,474 | $470,610 | 4% | 16% | | Net interest margin | 3.52% | 3.54% | 3.50% | (2) bps | 2 bps | | Total assets (thousands) | $68,983,318 | $65,870,066 | $59,781,516 | 19% (annualized) | 15% | | Total loans (thousands) | $51,041,679 | $48,708,390 | $44,675,531 | 19% (annualized) | 14% | | Total deposits (thousands) | $55,816,811 | $53,570,038 | $48,049,026 | 17% (annualized) | 16% | | Total shareholders' equity (thousands) | $7,225,696 | $6,600,537 | $5,536,628 | 38% | 31% | [Selected Financial Highlights](index=14&type=section&id=5.2%20Selected%20Financial%20Highlights) This table provides a comprehensive overview of Wintrust's financial condition, income data, performance ratios, and common share data across multiple quarters, including year-to-date comparisons, offering detailed insights into trends and key metrics. Selected Financial Highlights (Quarterly and Six Months Ended) | Metric | Jun 30, 2025 | Mar 31, 2025 | Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | H1 2025 | H1 2024 | | :-------------------------------- | :----------- | :----------- | :----------- | :----------- | :----------- | :------ | :------ | | **Selected Financial Condition Data (at end of period):** | | | | | | | | | Total assets (thousands) | $68,983,318 | $65,870,066 | $64,879,668 | $63,788,424 | $59,781,516 | | | | Total loans (thousands) | $51,041,679 | $48,708,390 | $48,055,037 | $47,067,447 | $44,675,531 | | | | Total deposits (thousands) | $55,816,811 | $53,570,038 | $52,512,349 | $51,404,966 | $48,049,026 | | | | Total shareholders' equity (thousands) | $7,225,696 | $6,600,537 | $6,344,297 | $6,399,714 | $5,536,628 | | | | **Selected Statements of Income Data:** | | | | | | | | | Net interest income (thousands) | $546,694 | $526,474 | $525,148 | $502,583 | $470,610 | $1,073,168 | $934,804 | | Net revenue (thousands) | $670,783 | $643,108 | $638,599 | $615,730 | $591,757 | $1,313,891 | $1,196,531 | | Net income (thousands) | $195,527 | $189,039 | $185,362 | $170,001 | $152,388 | $384,566 | $339,682 | | Net income per common share – Diluted | $2.78 | $2.69 | $2.63 | $2.47 | $2.32 | $5.47 | $5.21 | | **Selected Financial Ratios and Other Data:** | | | | | | | | | Net interest margin | 3.52% | 3.54% | 3.49% | 3.49% | 3.50% | 3.53% | 3.53% | | Return on average assets | 1.19% | 1.20% | 1.16% | 1.11% | 1.07% | 1.19% | 1.21% | | Return on average common equity | 12.07% | 12.21% | 11.82% | 11.63% | 11.61% | 12.14% | 13.01% | | Period-end loans to deposits ratio | 91.4% | 90.9% | 91.5% | 91.6% | 93.0% | | | | Common equity to assets ratio | 9.3% | 9.4% | 9.1% | 9.4% | 8.6% | | | | Tier 1 leverage ratio | 10.2% | 9.6% | 9.4% | 9.6% | 9.3% | | | | Allowance for credit losses (thousands) | $457,461 | $448,387 | $437,060 | $436,193 | $437,560 | | | | Banking offices | 208 | 208 | 205 | 203 | 177 | | | [Consolidated Statements of Condition](index=16&type=section&id=5.3%20Consolidated%20Statements%20of%20Condition) This table provides a detailed breakdown of Wintrust's assets, liabilities, and shareholders' equity at the end of various periods, illustrating the growth and composition of the Company's balance sheet. Consolidated Statements of Condition (in thousands) | (In thousands) | Jun 30, 2025 | Mar 31, 2025 | Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | | :-------------------------------- | :----------- | :----------- | :----------- | :----------- | :----------- | | **Assets** | | | | | | | Total assets | $68,983,318 | $65,870,066 | $64,879,668 | $63,788,424 | $59,781,516 | | Loans, net of unearned income | $51,041,679 | $48,708,390 | $48,055,037 | $47,067,447 | $44,675,531 | | Net loans | $50,650,025 | $48,330,183 | $47,691,020 | $46,707,168 | $44,311,812 | | Goodwill | $798,144 | $796,932 | $796,942 | $800,780 | $655,955 | | **Liabilities and Shareholders' Equity** | | | | | | | Total deposits | $55,816,811 | $53,570,038 | $52,512,349 | $51,404,966 | $48,049,026 | | Non-interest-bearing deposits | $10,877,166 | $11,201,859 | $11,410,018 | $10,739,132 | $10,031,440 | | Interest-bearing deposits | $44,939,645 | $42,368,179 | $41,102,331 | $40,665,834 | $38,017,586 | | Total liabilities | $61,757,622 | $59,269,529 | $58,535,371 | $57,388,710 | $54,244,888 | | Total shareholders' equity | $7,225,696 | $6,600,537 | $6,344,297 | $6,399,714 | $5,536,628 | | Preferred stock | $837,500 | $412,500 | $412,500 | $412,500 | $412,500 | [Consolidated Statements of Income](index=17&type=section&id=5.4%20Consolidated%20Statements%20of%20Income) This table provides a detailed breakdown of Wintrust's interest income, interest expense, net interest income, non-interest income, non-interest expense, and net income for various quarterly and year-to-date periods, illustrating the Company's profitability trends. Consolidated Statements of Income (in thousands) | (Dollars in thousands, except per share data) | Jun 30, 2025 | Mar 31, 2025 | Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | H1 2025 | H1 2024 | | :-------------------------------- | :----------- | :----------- | :----------- | :----------- | :----------- | :------ | :------ | | Total interest income | $920,908 | $886,965 | $913,501 | $908,604 | $849,979 | $1,807,873 | $1,655,492 | | Total interest expense | $374,214 | $360,491 | $388,353 | $406,021 | $379,369 | $734,705 | $720,688 | | Net interest income | $546,694 | $526,474 | $525,148 | $502,583 | $470,610 | $1,073,168 | $934,804 | | Provision for credit losses | $22,234 | $23,963 | $16,979 | $22,334 | $40,061 | $46,197 | $61,734 | | Total non-interest income | $124,089 | $116,634 | $113,451 | $113,147 | $121,147 | $240,723 | $261,727 | | Total non-interest expense | $381,461 | $366,090 | $368,539 | $360,687 | $340,353 | $747,551 | $673,498 | | Income before taxes | $267,088 | $253,055 | $253,081 | $232,709 | $211,343 | $520,143 | $461,299 | | Income tax expense | $71,561 | $64,016 | $67,719 | $62,708 | $58,955 | $135,577 | $121,617 | | Net income | $195,527 | $189,039 | $185,362 | $170,001 | $152,388 | $384,566 | $339,682 | | Net income per common share - Diluted | $2.78 | $2.69 | $2.63 | $2.47 | $2.32 | $5.47 | $5.21 | [Loan Portfolio Details](index=18&type=section&id=5.5%20Loan%20Portfolio%20Details) [Loan Portfolio Mix and Growth Rates](index=18&type=section&id=5.5.1%20Loan%20Portfolio%20Mix%20and%20Growth%20Rates) Wintrust's loan portfolio demonstrated strong annualized growth in Q2 2025, with significant increases in both core and niche loan categories, particularly in U.S. property & casualty insurance premium finance receivables and mortgage warehouse lines of credit. Loan Portfolio Growth (Q2 2025 vs. Q1 2025 & Q2 2024) | Loan Category | Jun 30, 2025 (Balance) | % Growth From Mar 31, 2025 (Annualized) | % Growth From Jun 30, 2024 | | :-------------------------------- | :-------------------- | :-------------------------------------- | :-------------------------- | | Total mortgage loans held-for-sale | $299,606 | (22)% | (27)% | | Total core loans | $29,928,663 | 11% | 14% | | Commercial and industrial | $7,028,247 | 9% | 13% | | Leases | $2,757,331 | 11% | 13% | | Industrial real estate | $2,824,889 | 22% | 22% | | Residential real estate loans for investment | $3,814,715 | 29% | 30% | | Total niche loans | $21,113,016 | 31% | 15% | | Mortgage warehouse lines of credit | $1,232,530 | 84% | NM | | U.S. property & casualty insurance | $7,378,340 | 55% | 20% | | Life insurance | $8,506,960 | 7% | 7% | | Total loans, net of unearned income | $51,041,679 | 19% | 14% | [Maturities and Sensitivities to Changes in Interest Rates](index=25&type=section&id=5.5.2%20Maturities%20and%20Sensitivities%20to%20Changes%20in%20Interest%20Rates) The majority of Wintrust's loan portfolio is variable rate, with significant portions tied to SOFR and CMT indices. The Company actively manages interest rate risk through derivatives and fixed-rate loan originations, maintaining a relatively neutral sensitivity to interest rate changes. Loan Portfolio by Rate Type and Maturity (As of Jun 30, 2025) | Loan Category | Fixed Rate (thousands) | Variable Rate (thousands) | Total (thousands) | | :-------------------------------- | :--------------------- | :---------------------- | :---------------- | | Commercial | $6,318,241 | $10,069,190 | $16,387,431 | | Commercial real estate | $3,884,862 | $9,407,148 | $13,292,010 | | Residential real estate | $1,148,727 | $2,800,055 | $3,948,782 | | Premium finance receivables - property & casualty | $8,323,176 | — | $8,323,176 | | Premium finance receivables - life insurance | $493,690 | $8,013,270 | $8,506,960 | | Total loans, net of unearned income | $20,226,293 | $30,815,386 | $51,041,679 | - Variable rate loans are primarily tied to **SOFR tenors ($19.5 billion)** and **12-month CMT ($6.9 billion)**[78](index=78&type=chunk)[81](index=81&type=chunk) - Interest rate sensitivity remains relatively neutral, with management using derivative instruments (collars, receive fixed swaps) and longer-term fixed-rate loan originations to mitigate fluctuations[76](index=76&type=chunk) [Deposit Portfolio Details](index=19&type=section&id=5.6%20Deposit%20Portfolio%20Details) [Deposit Portfolio Mix and Growth Rates](index=19&type=section&id=5.6.1%20Deposit%20Portfolio%20Mix%20and%20Growth%20Rates) Wintrust experienced strong annualized deposit growth in Q2 2025, with significant increases in NOW and interest-bearing demand deposits, money market accounts, and time certificates of deposit, while non-interest-bearing deposits saw a slight decline. Deposit Portfolio Growth (Q2 2025 vs. Q1 2025 & Q2 2024) | Deposit Category | Jun 30, 2025 (Balance) | % Growth From Mar 31, 2025 (Annualized) | % Growth From Jun 30, 2024 | | :-------------------------------- | :-------------------- | :-------------------------------------- | :-------------------------- | | Non-interest-bearing | $10,877,166 | (12)% | 8% | | NOW and interest bearing demand deposits | $6,795,725 | 29% | 34% | | Wealth management deposits | $1,595,764 | 53% | 7% | | Money market | $19,556,041 | 33% | 20% | | Savings | $6,659,419 | 5% | 13% | | Time certificates of deposit | $10,332,696 | 15% | 11% | | Total deposits | $55,816,811 | 17% | 16% | [Time Certificates of Deposit Maturity/Re-pricing Analysis](index=19&type=section&id=5.6.2%20Time%20Certificates%20of%20Deposit%20Maturity%2FRe-pricing%20Analysis) The majority of Wintrust's time certificates of deposit are set to mature or re-price within the next 9 months, with weighted-average rates ranging from 3.64% to 3.92% for maturities up to 12 months. Time Certificates of Deposit Maturity/Re-pricing (As of Jun 30, 2025) | Maturity Period | Total Time Certificates of Deposit (thousands) | Weighted-Average Rate of Maturing Time Certificates of Deposit | | :-------------------- | :------------------------------------------- | :------------------------------------------------------------- | | 1-3 months | $2,486,694 | 3.92% | | 4-6 months | $4,464,126 | 3.80% | | 7-9 months | $2,187,365 | 3.74% | | 10-12 months | $771,114 | 3.64% | | 13-18 months | $262,094 | 3.41% | | 19-24 months | $99,689 | 2.92% | | 24+ months | $61,614 | 2.36% | | Total | $10,332,696 | 3.78% | [Net Interest Income and Margin Tables](index=20&type=section&id=5.7%20Net%20Interest%20Income%20and%20Margin%20Tables) [Quarterly Average Balances](index=20&type=section&id=5.7.1%20Quarterly%20Average%20Balances) This table details the quarterly average balances of Wintrust's assets and liabilities, showing growth in total earning assets, loans, and interest-bearing deposits, contributing to the overall balance sheet expansion. Quarterly Average Balances (in thousands) | (In thousands) | Jun 30, 2025 | Mar 31, 2025 | Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | | :-------------------------------- | :----------- | :----------- | :----------- | :----------- | :----------- | | Total earning assets | $62,219,929 | $60,344,715 | $59,848,361 | $57,268,390 | $54,124,706 | | Loans, net of unearned income | $49,517,635 | $47,833,380 | $47,153,014 | $45,920,586 | $43,819,354 | | Total assets | $65,840,345 | $64,107,042 | $63,594,105 | $60,915,283 | $57,493,184 | | Interest-bearing deposits | $42,581,193 | $41,087,380 | $40,602,905 | $38,668,386 | $36,214,313 | | Total interest-bearing liabilities | $46,878,124 | $45,372,700 | $44,893,140 | $43,021,852 | $40,562,392 | | Non-interest-bearing deposits | $10,643,798 | $10,732,156 | $10,718,738 | $10,271,613 | $9,879,134 | [Quarterly Net Interest Income](index=21&type=section&id=5.7.2%20Quarterly%20Net%20Interest%20Income) This table presents the quarterly net interest income, showing an increase driven by higher interest income from loans and investment securities, partially offset by increased interest expense on deposits. Quarterly Net Interest Income (in thousands) | (In thousands) | Jun 30, 2025 | Mar 31, 2025 | Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | | :-------------------------------- | :----------- | :----------- | :----------- | :----------- | :----------- | | Total interest income | $923,788 | $889,864 | $916,571 | $911,748 | $852,854 | | Total interest expense | $374,214 | $360,491 | $388,353 | $406,021 | $379,369 | | Net interest income (GAAP) | $546,694 | $526,474 | $525,148 | $502,583 | $470,610 | | Net interest income, fully taxable-equivalent (non-GAAP) | $549,574 | $529,373 | $528,218 | $505,727 | $473,485 | [Quarterly Net Interest Margin](index=22&type=section&id=5.7.3%20Quarterly%20Net%20Interest%20Margin) The net interest margin remained largely stable in Q2 2025, with a slight decrease in the yield on earning assets offset by a reduction in the rate paid on interest-bearing deposits. Quarterly Net Interest Margin | Metric | Jun 30, 2025 | Mar 31, 2025 | Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | | :-------------------------------- | :----------- | :----------- | :----------- | :----------- | :----------- | | Yield earned on total earning assets | 5.96% | 5.98% | 6.09% | 6.33% | 6.34% | | Rate paid on total interest-bearing liabilities | 3.20% | 3.22% | 3.44% | 3.75% | 3.76% | | Interest rate spread | 2.76% | 2.76% | 2.65% | 2.58% | 2.58% | | Net interest margin (GAAP) | 3.52% | 3.54% | 3.49% | 3.49% | 3.50% | | Net interest margin, fully taxable-equivalent (non-GAAP) | 3.54% | 3.56% | 3.51% | 3.51% | 3.52% | [Year-to-Date Average Balances, Net Interest Income and Margin](index=23&type=section&id=5.7.4%20Year-to-Date%20Average%20Balances%2C%20Net%20Interest%20Income%20and%20Margin) Year-to-date figures for H1 2025 show growth in average earning assets and net interest income compared to H1 2024, with a stable net interest margin. The interest rate spread also improved. Year-to-Date Average Balances, Net Interest Income and Margin (H1 2025 vs. H1 2024) | Metric | Jun 30, 2025 | Jun 30, 2024 | % Change (YoY) | | :-------------------------------- | :----------- | :----------- | :------------- | | Average Total Earning Assets (thousands) | $61,287,502 | $53,197,365 | +15.2% | | Average Loans, net of unearned income (thousands) | $48,680,160 | $42,974,623 | +13.3% | | Average Total Assets (thousands) | $64,978,481 | $56,547,939 | +14.9% | | Net Interest Income (GAAP, thousands) | $1,073,168 | $934,804 | +14.8% | | Net Interest Margin (GAAP) | 3.53% | 3.53% | Stable | | Interest Rate Spread | 2.76% | 2.62% | +14 bps | [Interest Rate Sensitivity](index=24&type=section&id=5.7.5%20Interest%20Rate%20Sensitivity) Wintrust's net interest income sensitivity to interest rate changes remained relatively neutral as of June 30, 2025, reflecting management's actions to reposition its sensitivity through derivative instruments and fixed-rate loan originations. Interest Rate Sensitivity (Percentage Change in Net Interest Income over One Year) | Scenario | +200 Basis Points | +100 Basis Points | -100 Basis Points | -200 Basis Points | | :-------------------- | :---------------- | :---------------- | :---------------- | :---------------- | | Static Shock Scenario (Jun 30, 2025) | (1.5)% | (0.4)% | (0.2)% | (1.2)% | | Ramp Scenario (Jun 30, 2025) | 0.0% | 0.0% | (0.1)% | (0.4)% | - Management has executed derivative instruments (collars, receive fixed swaps) and originated longer-term fixed-rate loans to hedge variable rate loan exposures and mitigate interest rate risk[76](index=76&type=chunk) [Asset Quality Tables](index=27&type=section&id=5.8%20Asset%20Quality%20Tables) [Allowance for Credit Losses](index=27&type=section&id=5.8.1%20Allowance%20for%20Credit%20Losses) The allowance for credit losses increased in Q2 2025, reflecting a provision for credit losses that was lower than the previous quarter. Net charge-offs increased slightly but remained stable as a percentage of total loans. Allowance for Credit Losses Rollforward (in thousands) | (In thousands) | Jun 30, 2025 | Mar 31, 2025 | Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | | :-------------------------------- | :----------- | :----------- | :----------- | :----------- | :----------- | | Allowance for credit losses at beginning of period | $448,387 | $437,060 | $436,193 | $437,560 | $427,504 | | Provision for credit losses - Other | $22,234 | $23,963 | $16,979 | $6,787 | $40,061 | | Total charge-offs | $18,495 | $17,449 | $19,731 | $31,018 | $34,756 | | Total recoveries | $5,155 | $4,809 | $3,806 | $4,283 | $4,770 | | Net charge-offs | ($13,340) | ($12,640) | ($15,925) | ($26,735) | ($29,986) | | Allowance for credit losses at period end | $457,461 | $448,387 | $437,060 | $436,193 | $437,560 | | Annualized net charge-offs as a percentage of total loans | 0.11% | 0.11% | 0.13% | 0.23% | 0.28% | | Allowance for loan losses as a percentage of loans at period end | 0.77% | 0.78% | 0.76% | 0.77% | 0.81% | [Allowance and Provision for Credit Losses by Component](index=28&type=section&id=5.8.2%20Allowance%20and%20Provision%20for%20Credit%20Losses%20by%20Component) This table breaks down the provision and allowance for credit losses into components, including loan losses, unfunded lending-related commitments, and held-to-maturity securities losses, showing a decrease in provision for unfunded lending-related commitments. Allowance and Provision for Credit Losses by Component (in thousands) | (In thousands) | Jun 30, 2025 | Mar 31, 2025 | Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | | :-------------------------------- | :----------- | :----------- | :----------- | :----------- | :----------- | | Provision for loan losses - Other | $26,607 | $26,826 | $19,852 | $6,782 | $45,111 | | Provision for unfunded lending-related commitments losses - Other | ($4,325) | ($2,852) | ($2,851) | $17 | ($5,212) | | Provision for held-to-maturity securities losses | ($48) | ($11) | ($22) | ($12) | $162 | | Provision for credit losses | $22,234 | $23,963 | $16,979 | $22,334 | $40,061 | | Allowance for loan losses | $391,654 | $378,207 | $364,017 | $360,279 | $363,719 | | Allowance for unfunded lending-related commitments losses | $65,409 | $69,734 | $72,586 | $75,435 | $73,350 | | Allowance for held-to-maturity securities losses | $398 | $446 | $457 | $479 | $491 | | Allowance for credit losses | $457,461 | $448,387 | $437,060 | $436,193 | $437,560 | [Allowance by Loan Portfolio](index=28&type=section&id=5.8.3%20Allowance%20by%20Loan%20Portfolio) This table provides a breakdown of the allowance for loan losses and unfunded lending-related commitments by loan portfolio, showing the calculated allowance as a percentage of each category's balance. Allowance by Loan Portfolio (As of Jun 30, 2025, in thousands) | (Dollars in thousands) | Recorded Investment | Calculated Allowance | % of category's balance | | :-------------------------------- | :------------------ | :------------------- | :---------------------- | | Commercial | $16,387,431 | $194,568 | 1.19% | | Commercial real estate | $13,292,010 | $224,358 | 1.69% | | Home equity | $466,815 | $9,221 | 1.98% | | Residential real estate | $3,948,782 | $11,455 | 0.29% | | Premium finance receivables - Property and casualty insurance | $8,323,176 | $15,872 | 0.19% | | Premium finance receivables - Life insurance | $8,506,960 | $740 | 0.01% | | Consumer and other | $116,505 | $849 | 0.73% | | Total loans, net of unearned income | $51,041,679 | $457,063 | 0.90% | | Total core loans | $29,928,663 | $409,826 | 1.37% | | Total niche loans | $21,113,016 | $47,237 | 0.22% | [Loan Portfolio Aging](index=29&type=section&id=5.8.4%20Loan%20Portfolio%20Aging) This table provides an aging analysis of Wintrust's loan portfolio, categorizing loans by delinquency status (nonaccrual, past due, current) for various loan types, indicating generally low delinquency rates. Loan Portfolio Aging (As of Jun 30, 2025, in thousands) | (In thousands) | Nonaccrual | 90+ days and still accruing | 60-89 days past due | 30-59 days past due | Current | Total | | :-------------------------------- | :--------- | :-------------------------- | :------------------ | :------------------ | :-------- | :---------- | | Commercial | $80,877 | — | $34,855 | $45,103 | $16,226,596 | $16,387,431 | | Commercial real estate | $32,828 | — | $11,257 | $51,173 | $13,196,752 | $13,292,010 | | Home equity | $1,780 | — | $138 | $2,971 | $461,926 | $466,815 | | Residential real estate | $28,047 | — | $8,954 | $38 | $3,777,676 | $3,948,782 | | Premium finance receivables - property & casualty | $30,404 | $14,350 | $25,641 | $29,460 | $8,223,321 | $8,323,176 | | Premium finance receivables - life insurance | — | $327 | $11,202 | $34,403 | $8,461,028 | $8,506,960 | | Consumer and other | $41 | $184 | $61 | $175 | $116,044 | $116,505 | | Total loans, net of unearned income | $173,977 | $14,861 | $92,108 | $163,323 | $50,463,343 | $51,041,679 | [Non-Performing Assets](index=30&type=section&id=5.8.5%20Non-Performing%20Assets) Non-performing assets and loans remained relatively stable in Q2 2025, with slight increases in total non-performing loans and other real estate owned. The allowance for loan losses as a percentage of non-accrual loans remained strong. Non-Performing Assets (in thousands) | (Dollars in thousands) | Jun 30, 2025 | Mar 31, 2025 | Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | | :-------------------------------- | :----------- | :----------- | :----------- | :----------- | :----------- | | Total loans past due greater than 90 days and still accruing | $14,861 | $21,187 | $16,182 | $18,628 | $22,852 | | Total non-accrual loans | $173,977 | $151,203 | $154,641 | $161,059 | $151,399 | | Total non-performing loans | $188,838 | $172,390 | $170,823 | $179,687 | $174,251 | | Other real estate owned | $23,615 | $22,625 | $23,116 | $13,682 | $19,731 | | Total non-performing assets | $212,453 | $195,015 | $193,939 | $193,369 | $193,982 | | Total non-performing loans as a percent of total loans | 0.37% | 0.35% | 0.36% | 0.38% | 0.39% | | Total non-performing assets as a percentage of total assets | 0.31% | 0.30% | 0.30% | 0.30% | 0.32% | | Allowance for loan losses and unfunded lending-related commitments losses as a percentage of non-accrual loans | 262.71% | 296.25% | 282.33% | 270.53% | 288.69% | [Non-performing Loans Rollforward](index=31&type=section&id=5.8.6%20Non-performing%20Loans%20Rollforward) This table tracks the movement of non-performing loans, showing additions from new non-performing status, returns to performing status, payments, transfers to OREO, and net charge-offs. Non-performing Loans Rollforward (in thousands) | (In thousands) | Jun 30, 2025 | Mar 31, 2025 | Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | | :-------------------------------- | :----------- | :----------- | :----------- | :----------- | :----------- | | Balance at beginning of period | $172,390 | $170,823 | $179,687 | $174,251 | $148,359 | | Additions from becoming non-performing | $48,651 | $27,721 | $30,931 | $42,335 | $54,376 | | Return to performing status | ($6,896) | ($1,207) | ($1,108) | ($362) | ($912) | | Payments received | ($5,602) | ($15,965) | ($12,219) | ($10,894) | ($9,611) | | Transfer to OREO and other repossessed assets | ($1,315) | — | ($17,897) | ($3,680) | ($6,945) | | Charge-offs, net | ($11,734) | ($8,600) | ($5,612) | ($21,211) | ($7,673) | | Balance at end of period | $188,838 | $172,390 | $170,823 | $179,687 | $174,251 | [Other Real Estate Owned](index=31&type=section&id=5.8.7%20Other%20Real%20Estate%20Owned) Other Real Estate Owned (OREO) balances increased slightly in Q2 2025, primarily due to transfers from non-performing loans, with commercial real estate comprising the entire OREO portfolio. Other Real Estate Owned (in thousands) | (In thousands) | Jun 30, 2025 | Mar 31, 2025 | Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | | :-------------------------------- | :----------- | :----------- | :----------- | :----------- | :----------- | | Balance at beginning of period | $22,625 | $23,116 | $13,682 | $19,731 | $14,538 | | Transfers in at fair value, less costs to sell | $1,315 | — | $17,979 | $3,680 | $6,945 | | Balance at end of period | $23,615 | $22,625 | $23,116 | $13,682 | $19,731 | | Balance by Property Type: Commercial real estate | $23,615 | $22,625 | $23,116 | $13,682 | $19,570 | [Non-Interest Income Tables](index=32&type=section&id=5.9%20Non-Interest%20Income%20Tables) [Non-Interest Income Details](index=32&type=section&id=5.9.1%20Non-Interest%20Income%20Details) This table provides a detailed breakdown of Wintrust's non-interest income sources, showing growth in wealth management, mortgage banking, and service charges on deposit accounts, while net gains on investment securities decreased significantly QoQ. Non-Interest Income (in thousands) | (Dollars in thousands) | Jun 30, 2025 | Mar 31, 2025 | Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Q2 2025 vs Q1 2025 ($ Change) | Q2 2025 vs Q2 2024 ($ Change) | | :-------------------------------- | :----------- | :----------- | :----------- | :----------- | :----------- | :---------------------------- | :---------------------------- | | Total wealth management | $36,821 | $34,042 | $38,775 | $37,224 | $35,413 | $2,779 | $1,408 | | Mortgage banking | $23,170 | $20,529 | $20,452 | $15,974 | $29,124 | $2,641 | ($5,954) | | Service charges on deposit accounts | $19,502 | $19,362 | $18,864 | $16,430 | $15,546 | $140 | $3,956 | | Gains (losses) on investment securities, net | $650 | $3,196 | ($2,835) | $3,189 | ($4,282) | ($2,546) | $4,932 | | Fees from covered call options | $5,624 | $3,446 | $2,305 | $988 | $2,056 | $2,178 | $3,568 | | Operating lease income, net | $15,166 | $15,287 | $15,327 | $15,335 | $13,938 | ($121) | $1,228 | | Total Non-Interest Income | $124,089 | $116,634 | $113,451 | $113,147 | $121,147 | $7,455 | $2,942 | [Mortgage Banking Details](index=34&type=section&id=5.9.2%20Mortgage%20Banking%20Details) Mortgage banking revenue increased in Q2 2025, driven by higher origination volumes and improved production margin. While operational revenue grew, fair value adjustments, particularly MSR changes, had a negative impact. Mortgage Banking Revenue Summary (in thousands) | (Dollars in thousands) | Jun 30, 2025 | Mar 31, 2025 | Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | | :-------------------------------- | :----------- | :----------- | :----------- | :----------- | :----------- | | Total originations for sale | $681,546 | $460,453 | $660,338 | $766,777 | $722,186 | | Production revenue | $13,380 | $9,941 | $6,993 | $13,113 | $14,990 | | Production margin | 2.07% | 1.80% | 1.42% | 1.61% | 2.03% | | Loans serviced for others | $12,470,924 | $12,402,352 | $12,400,913 | $12,253,361 | $12,211,027 | | MSRs, at fair value | $193,061 | $196,307 | $203,788 | $186,308 | $204,610 | | Total operational mortgage banking revenue | $24,541 | $20,413 | $21,905 | $22,884 | $28,377 | | Total fair value mortgage banking revenue | ($1,371) | $116 | ($1,453) | ($6,910) | $747 | | Total mortgage banking revenue | $23,170 | $20,529 | $20,452 | $15,974 | $29,124 | Mortgage Banking Revenue Summary (Six Months Ended) | (Dollars in thousands) | Jun 30, 2025 | Jun 30, 2024 | $ Change | % Change | | :-------------------------------- | :----------- | :----------- | :------- | :------- | | Total originations for sale | $1,141,999 | $1,197,799 | ($55,800) | (5)% | | Production revenue | $23,321 | $28,425 | ($5,104) | (18)% | | Production margin | 1.94% | 2.19% | (25) bps | (11)% | | Total operational mortgage banking revenue | $44,954 | $53,212 | ($8,258) | (16)% | | Total fair value mortgage banking revenue | ($1,255) | $3,575 | ($4,830) | NM | | Total mortgage banking revenue | $43,699 | $56,787 | ($13,088) | (23)% | [Non-Interest Expense Tables](index=36&type=section&id=5.10%20Non-Interest%20Expense%20Tables) [Non-Interest Expense Details](index=36&type=section&id=5.10.1%20Non-Interest%20Expense%20Details) This table provides a detailed breakdown of Wintrust's non-interest expenses, showing increases in salaries and employee benefits, software and equipment, and advertising and marketing, contributing to the overall rise in expenses. Non-Interest Expense (in thousands) | (Dollars in thousands) | Jun 30, 2025 | Mar 31, 2025 | Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Q2 2025 vs Q1 2025 ($ Change) | Q2 2025 vs Q2 2024 ($ Change) | | :-------------------------------- | :----------- | :----------- | :----------- | :----------- | :----------- | :---------------------------- | :---------------------------- | | Total salaries and employee benefits | $219,541 | $211,526 | $212,133 | $211,261 | $198,541 | $8,015 | $21,000 | | Software and equipment | $36,522 | $34,717 | $34,258 | $31,574 | $29,231 | $1,805 | $7,291 | | Data processing | $12,110 | $11,274 | $10,957 | $9,984 | $9,503 | $836 | $2,607 | | Advertising and marketing | $18,761 | $12,272 | $13,097 | $18,239 | $17,436 | $6,489 | $1,325 | | Amortization of other acquisition-related intangible assets | $5,580 | $5,618 | $5,773 | $4,042 | $1,122 | ($38) | $4,458 | | Total Non-Interest Expense | $381,461 | $366,090 | $368,539 | $360,687 | $340,353 | $15,371 | $41,108 | [Supplemental Non-GAAP Financial Measures/Ratios](index=37&type=section&id=5.11%20Supplemental%20Non-GAAP%20Financial%20Measures%2FRatios) This section provides reconciliations of non-GAAP financial measures and ratios used by management to evaluate Wintrust's performance, including taxable-equivalent net interest income, tangible common equity ratio, and return on average tangible common equity, offering a more meaningful view of operational efficiency and profitability. - Management uses non-GAAP measures like taxable-equivalent net interest income, tangible common equity ratio, and return on average tangible common equity to provide a more meaningful view of performance and operating efficiency[99](index=99&type=chunk)[100](index=100&type=chunk) Reconciliation of Non-GAAP Financial Measures (in thousands) | (Dollars and shares in thousands) | Jun 30, 2025 | Mar 31, 2025 | Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | | :-------------------------------- | :----------- | :----------- | :----------- | :----------- | :----------- | | Net Interest Income (GAAP) | $546,694 | $526,474 | $525,148 | $502,583 | $470,610 | | Net Interest Income (non-GAAP) | $549,574 | $529,373 | $528,218 | $505,727 | $473,485 | | Net interest margin (GAAP) | 3.52% | 3.54% | 3.49% | 3.49% | 3.50% | | Net interest margin, fully taxable equivalent (non-GAAP) | 3.54% | 3.56% | 3.51% | 3.51% | 3.52% | | Efficiency ratio (GAAP) | 56.92% | 57.21% | 57.46% | 58.88% | 57.10% | | Efficiency ratio (non-GAAP) | 56.68% | 56.95% | 57.18% | 58.58% | 56.83% | | Total tangible common shareholders' equity (non-GAAP) | $5,479,557 | $5,275,033 | $5,013,165 | $5,062,568 | $4,447,566 | | Tangible common equity ratio (non-GAAP) | 8.0% | 8.1% | 7.8% | 8.1% | 7.5% | | Tangible book value per common share (non-GAAP) | $81.86 | $78.83 | $75.39 | $76.15 | $72.01 | | Return on average tangible common equity, annualized (non-GAAP) | 14.44% | 14.72% | 14.29% | 13.92% | 13.49% | | Pre-tax income, excluding provision for credit losses (non-GAAP) | $289,322 | $277,018 | $270,060 | $255,043 | $251,404 | [Additional Information](index=39&type=section&id=Additional%20Information) [Wintrust Subsidiaries](index=39&type=section&id=6.1%20Wintrust%20Subsidiaries) Wintrust Financial Corporation operates as a financial holding company with 16 community bank subsidiaries and various non-bank businesses, providing a wide range of banking, financial, and wealth management services across multiple states and Canada. - Wintrust operates **16 community bank subsidiaries** in the greater Chicago, southern Wisconsin, west Michigan, northwest Indiana, and southwest Florida market areas[103](index=103&type=chunk) - Non-bank businesses include: FIRST Insurance Funding and Wintrust Life Finance (commercial and life insurance loans), First Insurance Funding of Canada (commercial insurance loans in Canada) - Tricom, Inc. (accounts receivable financing and outsourced administrative services for temporary staffing) - Wintrust Mortgage (residential mortgages for secondary market) - Wintrust Investments, LLC (private client and brokerage services) - Great Lakes Advisors LLC (money management and advisory services) - Wintrust Private Trust Company, N.A. (trust and investment services) - Wintrust Asset Finance (direct leasing) - CDEC (tax-deferred like-kind exchange services)[105](index=105&type=chunk) [Forward-Looking Statements and Risk Factors](index=39&type=section&id=6.2%20Forward-Looking%20Statements%20and%20Risk%20Factors) This section outlines forward-looking statements and associated risks, emphasizing that actual results may differ materially due to numerous factors, including economic conditions, credit quality, interest rate fluctuations, competitive pressures, regulatory changes, and operational risks. - Forward-looking statements are based on management's expectations and projections, not historical facts, and are subject to various risks and uncertainties[104](index=104&type=chunk) - Economic conditions affecting liquidity, loan portfolios, housing prices, and the job market - Extent of defaults and losses on the loan portfolio, requiring increases in allowance for credit losses - Changes in interest rates, capital markets, and other market indices affecting liquidity and asset/liability values - Competitive pressures impacting pricing and market share - Failure to identify and complete favorable acquisitions or unexpected losses from acquisitions - Harm to reputation, negative perception of financial strength, or inability to raise additional capital - Security breaches, cyberattacks, and failures of information technology systems or third-party vendors - Legislative or regulatory changes, including heightened capital requirements and increased compliance costs - Delinquencies or fraud in premium finance business and credit downgrades of insurance providers - Fluctuations in the stock market impacting wealth management and brokerage operations[106](index=106&type=chunk)[107](index=107&type=chunk)[110](index=110&type=chunk) [Conference Call, Webcast and Replay Information](index=41&type=section&id=6.3%20Conference%20Call%2C%20Webcast%20and%20Replay%20Information) Details for accessing the conference call, webcast, and replay for Wintrust's second quarter and year-to-date 2025 earnings results are provided, including registration links and website locations for additional information. - A conference call for Q2 and year-to-date 2025 earnings results will be held on **Tuesday, July 22, 2025, at 10:00 a.m. (CDT)**[109](index=109&type=chunk) - Registration for the call and access to the audio-only webcast and replay, along with an accompanying slide presentation, are available on Wintrust's investor relations website[109](index=109&type=chunk)

[PART I. — FINANCIAL INFORMATION](index=4&type=section&id=PART%20I.%20%E2%80%94%20FINANCIAL%20INFORMATION) This section presents the Company's unaudited consolidated financial statements and related disclosures for the reporting period [ITEM 1. Financial Statements](index=4&type=section&id=ITEM%201.%20Financial%20Statements) This section presents the unaudited consolidated financial statements of Wintrust Financial Corporation and its subsidiaries, including the statements of condition, income, comprehensive income, changes in shareholders' equity, and cash flows, along with detailed notes explaining the basis of presentation, significant accounting policies, recent accounting developments, and specific financial instrument details [Consolidated Statements of Condition](index=4&type=section&id=Consolidated%20Statements%20of%20Condition) Presents the Company's financial position, detailing assets, liabilities, and shareholders' equity at specific dates Consolidated Statements of Condition (Dollars in thousands) | (Dollars in thousands) | March 31, 2025 | December 31, 2024 | March 31, 2024 | | :--------------------- | :------------- | :---------------- | :------------- | | **Assets** | | | | | Total assets | $65,870,066 | $64,879,668 | $57,576,933 | | **Liabilities** | | | | | Total deposits | $53,570,038 | $52,512,349 | $46,448,858 | | Total liabilities | $59,269,529 | $58,535,371 | $52,140,533 | | **Shareholders' Equity** | | | | | Total shareholders' equity | $6,600,537 | $6,344,297 | $5,436,400 | [Consolidated Statements of Income](index=5&type=section&id=Consolidated%20Statements%20of%20Income) Details the Company's revenues, expenses, and net income over specific reporting periods Consolidated Statements of Income (Dollars in thousands, except per share data) | (Dollars in thousands, except per share data) | Three Months Ended March 31, 2025 | Three Months Ended March 31, 2024 | | :-------------------------------------------- | :-------------------------------- | :-------------------------------- | | Total interest income | $886,965 | $805,513 | | Total interest expense | $360,491 | $341,319 | | Net interest income | $526,474 | $464,194 | | Provision for credit losses | $23,963 | $21,673 | | Total non-interest income | $116,634 | $140,580 | | Total non-interest expense | $366,090 | $333,145 | | Net income | $189,039 | $187,294 | | Net income per common share—Diluted | $2.69 | $2.89 | | Cash dividends declared per common share | $0.50 | $0.45 | [Consolidated Statements of Comprehensive Income](index=6&type=section&id=Consolidated%20Statements%20of%20Comprehensive%20Income) Reports net income and other comprehensive income items, reflecting changes in equity from non-owner sources Consolidated Statements of Comprehensive Income (In thousands) | (In thousands) | Three Months Ended March 31, 2025 | Three Months Ended March 31, 2024 | | :------------- | :-------------------------------- | :-------------------------------- | | Net income | $189,039 | $187,294 | | Total other comprehensive income (loss) | $98,320 | $(123,917) | | Comprehensive income | $287,359 | $63,377 | - Total other comprehensive income significantly improved from a loss of **$123.9 million** in Q1 2024 to a gain of **$98.3 million** in Q1 2025, primarily driven by unrealized gains on available-for-sale securities and derivative instruments[9](index=9&type=chunk) [Consolidated Statements of Changes in Shareholders' Equity](index=7&type=section&id=Consolidated%20Statements%20of%20Changes%20in%20Shareholders'%20Equity) Outlines the changes in each component of shareholders' equity over the reporting period Consolidated Statements of Changes in Shareholders' Equity (Dollars in thousands) | (Dollars in thousands) | Balance at January 1, 2025 | Net income | Other comprehensive income, net of tax | Cash dividends declared on common stock | Dividends on Preferred Stock | Stock-based compensation | Common stock issued for: | Balance at March 31, 2025 | | :--------------------- | :------------------------- | :--------- | :------------------------------------- | :-------------------------------------- | :--------------------------- | :----------------------- | :----------------------- | :------------------------ | | Total shareholders' equity | $6,344,297 | $189,039 | $98,320 | $(33,358) | $(6,991) | $10,411 | $1,822 | $6,600,537 | - Shareholders' equity increased from **$6.34 billion** at January 1, 2025, to **$6.60 billion** at March 31, 2025, primarily due to net income and other comprehensive income, partially offset by dividends[10](index=10&type=chunk) [Consolidated Statements of Cash Flows](index=8&type=section&id=Consolidated%20Statements%20of%20Cash%20Flows) Summarizes the cash inflows and outflows from operating, investing, and financing activities Consolidated Statements of Cash Flows (In thousands) | (In thousands) | Three Months Ended March 31, 2025 | Three Months Ended March 31, 2024 | | :------------- | :-------------------------------- | :-------------------------------- | | Net Cash Provided by Operating Activities | $119,754 | $71,125 | | Net Cash Used for Investing Activities | $(973,374) | $(1,419,170) | | Net Cash Provided by Financing Activities | $1,011,363 | $1,304,467 | | Net Increase (Decrease) in Cash and Cash Equivalents | $157,743 | $(43,578) | | Cash and Cash Equivalents at End of Period | $616,279 | $379,886 | - The Company experienced a net increase in cash and cash equivalents of **$157.7 million** in Q1 2025, a significant improvement from a net decrease of **$43.6 million** in Q1 2024, driven by increased cash from operating and financing activities[12](index=12&type=chunk) [Notes to Unaudited Consolidated Financial Statements](index=9&type=section&id=Notes%20to%20Unaudited%20Consolidated%20Financial%20Statements) Provides detailed explanations and additional information supporting the consolidated financial statements [(1) Basis of Presentation](index=9&type=section&id=(1)%20Basis%20of%20Presentation) Explains the accounting principles and assumptions used in preparing the interim financial statements - The interim consolidated financial statements are unaudited and reflect management's necessary adjustments for fair presentation, relying on estimates, assumptions, and judgments that could materially differ from reported results if conditions change[14](index=14&type=chunk)[15](index=15&type=chunk)[16](index=16&type=chunk) [(2) Recent Accounting Developments](index=9&type=section&id=(2)%20Recent%20Accounting%20Developments) Outlines recently issued accounting pronouncements and their potential impact on the Company's financial reporting - The FASB issued ASU No. 2023-09 (Income Tax Disclosures) effective for fiscal years beginning after December 15, 2024, which is expected to expand income tax disclosures[17](index=17&type=chunk) - ASU No. 2024-01 (Compensation – Stock Compensation) issued in March 2024, effective for public business entities for fiscal years beginning after December 15, 2024, did not impact the Company's consolidated financial statements[18](index=18&type=chunk) - ASU No. 2024-03 (Disaggregation of Income Statement Expenses) issued in November 2024, effective for fiscal years beginning after December 15, 2026, is currently being evaluated for its impact on the consolidated financial statements[19](index=19&type=chunk) - ASU No. 2024-04 (Induced Conversions of Convertible Debt Instruments) issued in November 2024, effective for fiscal years beginning after December 15, 2025, is expected to have no impact on the Company's consolidated financial statements[20](index=20&type=chunk) [(3) Business Combinations](index=10&type=section&id=(3)%20Business%20Combinations) Details significant acquisition activities, including the financial impact and key terms of completed transactions - On August 1, 2024, Wintrust completed the acquisition of Macatawa Bank Corporation for **$499.3 million**, issuing approximately **4.7 million** shares of common stock[21](index=21&type=chunk) - Macatawa Bank Corporation had approximately **$2.9 billion** in assets, **$2.3 billion** in deposits, and **$1.3 billion** in loans as of the acquisition date[21](index=21&type=chunk) - In conjunction with the acquisition, the Company recorded **$53.7 million** discount on acquired loans, **$33.5 million** discount on securities, and **$253.0 million** in total intangibles[21](index=21&type=chunk) [(4) Cash and Cash Equivalents](index=10&type=section&id=(4)%20Cash%20and%20Cash%20Equivalents) Defines the components of cash and cash equivalents and their treatment in the financial statements - Cash and cash equivalents include cash on hand, cash items in collection, non-interest bearing amounts due from correspondent banks, federal funds sold, and securities purchased under resale agreements with original maturities of three months or less[22](index=22&type=chunk) [(5) Investment Securities](index=11&type=section&id=(5)%20Investment%20Securities) Provides a breakdown of the Company's investment securities portfolio, including fair value and unrealized gains/losses Available-for-sale securities (March 31, 2025) (in thousands) | Category | Amortized Cost (in thousands) | Fair Value (in thousands) | | :------- | :---------------------------- | :------------------------ | | U.S. Treasury | $12,943 | $12,994 | | U.S. government agencies | $50,000 | $45,944 | | Municipal | $190,670 | $188,149 | | Corporate notes | $84,997 | $81,435 | | Mortgage-backed | $4,390,624 | $3,891,783 | | **Total** | **$4,729,234** | **$4,220,305** | Held-to-maturity securities (March 31, 2025) (in thousands) | Category | Amortized Cost (in thousands) | Fair Value (in thousands) | | :------- | :---------------------------- | :------------------------ | | U.S. government agencies | $313,539 | $250,912 | | Municipal | $158,307 | $153,646 | | Mortgage-backed | $3,036,409 | $2,462,927 | | Corporate notes | $56,681 | $55,328 | | **Total** | **$3,564,936** | **$2,922,813** | - At March 31, 2025, available-for-sale securities had gross unrealized losses of **$512.3 million**, primarily in mortgage-backed securities, due to changes in interest rates and market conditions[23](index=23&type=chunk)[29](index=29&type=chunk)[31](index=31&type=chunk) - Net gains on investment securities increased to **$3.2 million** for the three months ended March 31, 2025, from **$1.3 million** in the prior year, mainly due to unrealized gains on equity securities with readily determinable fair value[34](index=34&type=chunk) [(6) Loans](index=16&type=section&id=(6)%20Loans) Details the composition and growth of the Company's loan portfolio by category and risk mitigation strategies Loan Portfolio by Category (Dollars in thousands) | Category | March 31, 2025 | December 31, 2024 | March 31, 2024 | | :------- | :------------- | :---------------- | :------------- | | Commercial | $15,931,326 | $15,574,551 | $13,503,481 | | Commercial real estate | $12,914,901 | $12,903,944 | $11,633,437 | | Home equity | $455,683 | $445,028 | $340,349 | | Residential real estate | $3,685,159 | $3,612,765 | $2,890,266 | | Premium finance receivables—property & casualty | $7,239,862 | $7,272,042 | $6,940,019 | | Premium finance receivables—life insurance | $8,365,140 | $8,147,145 | $7,872,033 | | Consumer and other | $116,319 | $99,562 | $51,121 | | **Total loans, net of unearned income** | **$48,708,390** | **$48,055,037** | **$43,230,706** | - The loan portfolio increased to **$48.7 billion** at March 31, 2025, from **$43.2 billion** at March 31, 2024, with commercial and commercial real estate loans comprising **33%** and **26%** respectively[35](index=35&type=chunk) - The Company maintains a diverse loan portfolio across loan type, industry, borrower, and geographic concentrations to mitigate economic downturn risks[35](index=35&type=chunk) [(7) Allowance for Credit Losses](index=16&type=section&id=(7)%20Allowance%20for%20Credit%20Losses) Presents the allowance for credit losses, including changes, net charge-offs, and loan modifications Allowance for Credit Losses (Dollars in thousands) | Category | March 31, 2025 | December 31, 2024 | March 31, 2024 | | :------- | :------------- | :---------------- | :------------- | | Allowance for loan losses | $378,207 | $364,017 | $348,612 | | Allowance for unfunded lending-related commitments losses | $69,734 | $72,586 | $78,563 | | Allowance for held-to-maturity securities losses | $446 | $457 | $329 | | **Total Allowance for credit losses** | **$448,387** | **$437,060** | **$427,504** | - The total allowance for credit losses increased to **$448.4 million** at March 31, 2025, from **$427.5 million** at March 31, 2024, primarily due to loan growth and a macroeconomic uncertainty qualitative overlay[50](index=50&type=chunk)[55](index=55&type=chunk) - Net charge-offs for the three months ended March 31, 2025, totaled **$12.6 million**, a decrease from **$21.8 million** in the same period of 2024[55](index=55&type=chunk) - Loan modifications for borrowers experiencing financial difficulties totaled **$19.8 million** in Q1 2025, primarily involving extension of term and reduction of interest rate[59](index=59&type=chunk)[60](index=60&type=chunk) [(8) Goodwill and Other Acquisition-Related Intangible Assets](index=24&type=section&id=(8)%20Goodwill%20and%20Other%20Acquisition-Related%20Intangible%20Assets) Details the Company's goodwill and other acquisition-related intangible assets, including amortization expense Goodwill by Reporting Unit (Dollars in thousands) | Reporting Unit | December 31, 2024 | Goodwill Adjustments | March 31, 2025 | | :------------- | :---------------- | :------------------- | :------------- | | Community banking | $687,754 | — | $687,754 | | Specialty finance | $37,193 | $(10) | $37,183 | | Wealth management | $71,995 | — | $71,995 | | **Total** | **$796,942** | **$(10)** | **$796,932** | Total Other Acquisition-Related Intangible Assets, Net (Dollars in thousands) | Date | Net Carrying Amount | | :--- | :------------------ | | March 31, 2025 | $116,072 | | December 31, 2024 | $121,690 | | March 31, 2024 | $21,730 | - Total amortization expense for finite-lived acquisition-related intangibles increased significantly to **$5.6 million** for Q1 2025 from **$1.2 million** for Q1 2024, primarily due to the Macatawa acquisition[65](index=65&type=chunk) [(9) Mortgage Servicing Rights ("MSRs")](index=26&type=section&id=(9)%20Mortgage%20Servicing%20Rights%20(%22MSRs%22)) Reports the fair value and changes in mortgage servicing rights, including valuation adjustments Changes in Carrying Value of MSRs (In thousands) | Item | Three Months Ended March 31, 2025 | Three Months Ended March 31, 2024 | | :--- | :-------------------------------- | :-------------------------------- | | Fair value at beginning of the period | $203,788 | $192,456 | | Additions from loans sold with servicing retained | $4,669 | $5,379 | | Estimate of changes in fair value due to: Payoffs, paydowns and repurchases | $(4,636) | $(4,386) | | Changes in valuation inputs or assumptions | $(7,514) | $7,595 | | Fair value at end of the period | $196,307 | $201,044 | - The fair value of MSRs decreased to **$196.3 million** at March 31, 2025, from **$203.8 million** at the beginning of the period, primarily due to unfavorable changes in valuation inputs and assumptions[66](index=66&type=chunk) - The unpaid principal balance of mortgage loans serviced for others increased to **$12.4 billion** at March 31, 2025, from **$12.1 billion** at March 31, 2024[66](index=66&type=chunk) [(10) Deposits](index=27&type=section&id=(10)%20Deposits) Provides a summary of deposit categories and their year-over-year growth Summary of Deposits (Dollars in thousands) | Category | March 31, 2025 | December 31, 2024 | March 31, 2024 | | :------- | :------------- | :---------------- | :------------- | | Non-interest-bearing | $11,201,859 | $11,410,018 | $9,908,183 | | Interest-bearing | $42,368,179 | $41,102,331 | $36,540,675 | | **Total deposits** | **$53,570,038** | **$52,512,349** | **$46,448,858** | - Total deposits increased by **15%** year-over-year to **$53.6 billion** at March 31, 2025, with interest-bearing deposits comprising **79%** of the total[71](index=71&type=chunk) [(11) FHLB Advances, Other Borrowings and Subordinated Notes](index=27&type=section&id=(11)%20FHLB%20Advances,%20Other%20Borrowings%20and%20Subordinated%20Notes) Details the Company's FHLB advances, other borrowings, and subordinated notes, including changes and maturities Summary of FHLB Advances, Other Borrowings and Subordinated Notes (Dollars in thousands) | Category | March 31, 2025 | December 31, 2024 | March 31, 2024 | | :------- | :------------- | :---------------- | :------------- | | FHLB advances | $3,151,309 | $3,151,309 | $2,676,751 | | Other borrowings | $529,269 | $534,803 | $575,408 | | Subordinated notes | $298,360 | $298,283 | $437,965 | | **Total** | **$3,978,938** | **$3,984,395** | **$3,690,124** | - The Company repaid **$140.0 million** of subordinated notes in Q2 2024, reducing the total outstanding from **$438.0 million** at March 31, 2024, to **$298.4 million** at March 31, 2025[79](index=79&type=chunk) - Secured borrowings, primarily from a Canadian transaction, totaled **$319.6 million** at March 31, 2025, with the facility limit increased to **C$650 million** and maturity extended to December 15, 2025[75](index=75&type=chunk)[76](index=76&type=chunk) [(12) Junior Subordinated Debentures](index=28&type=section&id=(12)%20Junior%20Subordinated%20Debentures) Reports the outstanding balance and weighted average interest rate of junior subordinated debentures - Junior subordinated debentures remained stable at **$253.6 million** across all periods presented, with a weighted average contractual interest rate of **6.76%** at March 31, 2025[82](index=82&type=chunk) [(13) Segment Information](index=29&type=section&id=(13)%20Segment%20Information) Provides financial performance data for the Company's operating segments: community banking, specialty finance, and wealth management Net Income by Segment (In thousands) | Segment | Three Months Ended March 31, 2025 | Three Months Ended March 31, 2024 | | :------ | :-------------------------------- | :-------------------------------- | | Community banking | $134,270 | $120,046 | | Specialty finance | $50,293 | $42,523 | | Wealth management | $4,476 | $24,725 | | **Total** | **$189,039** | **$187,294** | - Community banking net income increased by **11.8%** year-over-year, while wealth management net income decreased significantly due to a gain on sale of a division in the prior year[88](index=88&type=chunk) - The Company's operations are divided into three primary segments: community banking, specialty finance, and wealth management, each with distinct products, services, and marketing strategies[83](index=83&type=chunk)[84](index=84&type=chunk) [(14) Derivative Financial Instruments](index=30&type=section&id=(14)%20Derivative%20Financial%20Instruments) Describes the Company's use of derivative instruments for risk management and their fair value Fair Value of Derivative Financial Instruments (Dollars in thousands) | Category | March 31, 2025 (Assets) | March 31, 2025 (Liabilities) | March 31, 2024 (Assets) | March 31, 2024 (Liabilities) | | :------- | :---------------------- | :--------------------------- | :---------------------- | :--------------------------- | | Derivatives designated as hedging instruments | $44,304 | $24,004 | $26,428 | $94,779 | | Derivatives not designated as hedging instruments | $159,953 | $157,194 | $232,836 | $229,585 | | **Total Derivatives** | **$204,257** | **$181,198** | **$259,264** | **$324,364** | - The Company uses derivatives primarily to manage interest rate risk, including interest rate swaps and collars for cash flow hedges, and interest rate swaps for fair value hedges[89](index=89&type=chunk)[90](index=90&type=chunk)[96](index=96&type=chunk)[103](index=103&type=chunk) - For Q1 2025, **$8.8 million** is estimated to be reclassified from accumulated other comprehensive income/loss as an increase to net interest income over the next 12 months[102](index=102&type=chunk) [(15) Fair Value of Assets and Liabilities](index=38&type=section&id=(15)%20Fair%20Value%20of%20Assets%20and%20Liabilities) Explains the methodologies and classifications for measuring the fair value of assets and liabilities Assets Measured at Fair Value on a Recurring Basis (March 31, 2025, in thousands) | Category | Total | Level 1 | Level 2 | Level 3 | | :------- | :---- | :------ | :------ | :------ | | Available-for-sale securities | $4,220,305 | $12,994 | $4,085,467 | $121,844 | | Equity securities with readily determinable fair value | $270,442 | $262,376 | $8,066 | — | | Mortgage loans held-for-sale | $316,804 | — | $260,480 | $56,324 | | Loans held-for-investment | $126,521 | — | $92,519 | $34,002 | | MSRs | $196,307 | — | — | $196,307 | | Derivative assets | $204,257 | — | $198,764 | $5,493 | | **Total** | **$5,351,032** | **$275,370** | **$4,661,692** | **$413,970** | - The Company classifies fair value measurements into three levels based on observability of inputs, with Level 3 requiring significant unobservable inputs and management judgment[123](index=123&type=chunk)[125](index=125&type=chunk) - At March 31, 2025, Level 3 assets measured at fair value on a recurring basis totaled **$414.0 million**, primarily consisting of municipal securities, mortgage loans held-for-sale, loans held-for-investment, MSRs, and derivative assets[139](index=139&type=chunk) [(16) Stock-Based Compensation Plans](index=48&type=section&id=(16)%20Stock-Based%20Compensation%20Plans) Details the Company's stock option and restricted share activity and related compensation expense - Stock-based compensation expense increased to **$10.4 million** in Q1 2025 from **$9.2 million** in Q1 2024[160](index=160&type=chunk) Stock Option Activity (Shares) | Item | Outstanding at January 1, 2025 | Exercised | Outstanding at March 31, 2025 | | :--- | :----------------------------- | :-------- | :---------------------------- | | Common Shares | 10,825 | (5,150) | 5,675 | Restricted Share Activity (Shares) | Item | Outstanding at January 1 | Granted | Vested and issued | Forfeited or canceled | Outstanding at March 31 | | :--- | :----------------------- | :------ | :---------------- | :-------------------- | :---------------------- | | Common Shares (2025) | 880,866 | 245,654 | (192,866) | (7,587) | 926,067 | | Common Shares (2024) | 746,123 | 305,807 | (219,622) | (3,154) | 829,154 | [(17) Accumulated Other Comprehensive Income or Loss and Earnings Per Share](index=50&type=section&id=(17)%20Accumulated%20Other%20Comprehensive%20Income%20or%20Loss%20and%20Earnings%20Per%20Share) Presents the components of accumulated other comprehensive income/loss and detailed earnings per share calculations Accumulated Other Comprehensive Income or Loss (In thousands) | Component | Balance at January 1, 2025 | Net other comprehensive income (loss) during the period, net of tax | Balance at March 31, 2025 | | :-------- | :------------------------- | :------------------------------------------------------------------ | :------------------------ | | Unrealized (Losses) Gains on Securities | $(429,580) | $55,586 | $(373,994) | | Unrealized Gains (Losses) on Derivative Instruments | $(11,227) | $42,974 | $31,747 | | Accumulated Foreign Currency Translation Adjustments | $(67,528) | $(240) | $(67,768) | | **Total Accumulated Other Comprehensive (Loss) Income** | **$(508,335)** | **$98,320** | **$(410,015)** | Earnings Per Share (Dollars in thousands, except per share data) | Item | Three Months Ended March 31, 2025 | Three Months Ended March 31, 2024 | | :--- | :-------------------------------- | :-------------------------------- | | Net income applicable to common shares | $182,048 | $180,303 | | Weighted average common shares outstanding | 66,726 | 61,481 | | Net income per common share—Basic | $2.73 | $2.93 | | Net income per common share—Diluted | $2.69 | $2.89 | - Diluted EPS decreased to **$2.69** in Q1 2025 from **$2.89** in Q1 2024, despite an increase in net income applicable to common shares, due to a higher weighted average of common shares outstanding[168](index=168&type=chunk) [(18) Subsequent Events](index=51&type=section&id=(18)%20Subsequent%20Events) Reports significant events that occurred after the balance sheet date but before the financial statements were issued - The Board of Directors declared a quarterly cash dividend of **$0.50** per share in April 2025, payable on May 22, 2025[170](index=170&type=chunk) [ITEM 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=52&type=section&id=ITEM%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) This section provides management's perspective on the Company's financial condition as of March 31, 2025, compared to prior periods, and results of operations for the three months ended March 31, 2025 and 2024. It covers key financial highlights, earnings performance, critical accounting estimates, and detailed analysis of net interest income, non-interest income, non-interest expense, segment results, financial condition, credit quality, funding, capital, and liquidity [Introduction](index=52&type=section&id=Introduction) Provides an overview of Wintrust Financial Corporation's business and geographic operations - Wintrust Financial Corporation is a financial holding company providing community and commercial banking, wealth management services in the Chicago metropolitan area, southern Wisconsin, northwest Indiana, and west Michigan, and operates other financing businesses nationally and in Canada[173](index=173&type=chunk) [Overview & First Quarter Highlights](index=52&type=section&id=Overview%20%26%20First%20Quarter%20Highlights) Summarizes key financial performance and operational achievements for the first quarter - Net income for Q1 2025 was **$189.0 million**, a **1%** increase from **$187.3 million** in Q1 2024, driven by increased net interest income and partially offset by higher non-interest expense and lower non-interest income[174](index=174&type=chunk) - The loan portfolio grew to **$48.7 billion** at March 31, 2025, from **$43.2 billion** at March 31, 2024, reflecting growth in commercial, commercial real estate, residential real estate, and insurance premium finance receivables[175](index=175&type=chunk) - Net interest income increased by **$62.3 million** to **$526.5 million** in Q1 2025 compared to Q1 2024, primarily due to a **$5.7 billion** increase in average loans[176](index=176&type=chunk) - Non-interest income decreased by **$23.9 million** to **$116.6 million** in Q1 2025 compared to Q1 2024, mainly due to a **$20.0 million** gain on the sale of the RBA division in Q1 2024 and decreased mortgage banking revenue[177](index=177&type=chunk) - Non-interest expense rose by **$32.9 million** (**10%**) to **$366.1 million** in Q1 2025, driven by increased salaries and employee benefits and software and equipment expenses, partly due to organic growth and the Macatawa acquisition[178](index=178&type=chunk) [RESULTS OF OPERATIONS](index=53&type=section&id=RESULTS%20OF%20OPERATIONS) Analyzes the Company's financial performance, including net income, net interest income, and non-interest income and expenses [Earnings Summary](index=53&type=section&id=Earnings%20Summary) Provides a concise overview of key financial metrics and their period-over-period changes Key Operating Measures (Three months ended March 31) | Metric | 2025 | 2024 | Change (%) or (bps) | | :----- | :--- | :--- | :------------------ | | Net income (in thousands) | $189,039 | $187,294 | 1 % | | Net income per common share—Diluted | $2.69 | $2.89 | (7) % | | Net revenue (in thousands) | $643,108 | $604,774 | 6 % | | Net interest income (in thousands) | $526,474 | $464,194 | 13 % | | Net interest margin | 3.54 % | 3.57 % | (3) bps | | Total assets (in thousands) | $65,870,066 | $57,576,933 | 14 % | | Total deposits (in thousands) | $53,570,038 | $46,448,858 | 15 % | | Return on average assets | 1.20 % | 1.35 % | (15) bps | | Return on average common equity | 12.21 % | 14.42 % | (221) bps | [Supplemental Non-GAAP Financial Measures/Ratios](index=53&type=section&id=Supplemental%20Non-GAAP%20Financial%20Measures/Ratios) Presents non-GAAP financial measures used by management to assess performance and provide additional insights - Management uses non-GAAP measures like taxable-equivalent net interest income and margin, efficiency ratio, tangible common equity ratio, tangible book value per common share, return on average tangible common equity, and pre-tax income excluding provision for credit losses to evaluate performance and provide a more meaningful view of operations[183](index=183&type=chunk)[184](index=184&type=chunk)[185](index=185&type=chunk) Non-GAAP Reconciliation Highlights (Three months ended March 31) | Metric | 2025 | 2024 | | :----- | :--- | :--- | | Net Interest Income, fully taxable-equivalent (non-GAAP) (in thousands) | $529,373 | $466,995 | | Net interest margin, fully taxable-equivalent (non-GAAP) | 3.56 % | 3.59 % | | Efficiency ratio (non-GAAP) | 56.95 % | 54.95 % | | Tangible common equity ratio (non-GAAP) | 8.1 % | 7.6 % | | Tangible book value per common share (non-GAAP) | $78.83 | $70.40 | | Return on average tangible common equity, annualized (non-GAAP) | 14.72 % | 16.75 % | | Pre-tax income, excluding provision for credit losses (non-GAAP) (in thousands) | $277,018 | $271,629 | [Critical Accounting Estimates](index=55&type=section&id=Critical%20Accounting%20Estimates) Discusses accounting estimates that require significant judgment and are susceptible to material changes - Critical accounting estimates include the determination of the allowance for credit losses, estimations of fair value, goodwill impairment testing, derivative instrument valuation, and income taxes, all requiring significant judgment and susceptible to change[188](index=188&type=chunk) - The allowance for credit losses is a critical estimate due to its reliance on fair value of collateral, expected future cash flows, and reasonable and supportable macroeconomic forecasts, which are subject to significant change[189](index=189&type=chunk) Sensitivity Analysis for Commercial Real Estate Portfolio (10% change in CREPI) | CRE Price Index | Impact to estimated allowance for credit losses | | :-------------- | :---------------------------------------------- | | Increases | Construction: Decreases estimate by 30%-35% | | | Non-Construction: Decreases estimate by 25%-30% | | Decreases | Construction: Increases estimate by 150%-155% | | | Non-Construction: Increases estimate by 40%-45% | [Net Income](index=57&type=section&id=Net%20Income) Analyzes the drivers of net income and diluted earnings per share for the reporting period - Net income for Q1 2025 was **$189.0 million**, a **1%** increase from **$187.3 million** in Q1 2024, while diluted EPS decreased to **$2.69** from **$2.89**[193](index=193&type=chunk) - The increase in net income was primarily due to higher net interest income, partially offset by decreased non-interest income (due to a prior-year gain on sale) and increased non-interest expense (due to growth and acquisition-related costs)[194](index=194&type=chunk) [Net Interest Income](index=57&type=section&id=Net%20Interest%20Income) Examines the components of net interest income and net interest margin, including volume and rate changes - Net interest income increased to **$526.5 million** in Q1 2025, up **$62.3 million** from Q1 2024, primarily driven by growth in earning assets, specifically a **$5.7 billion** increase in average loans[176](index=176&type=chunk)[202](index=202&type=chunk) - Net interest margin was **3.54%** (3.56% FTE) in Q1 2025, a slight decrease from **3.57%** (3.59% FTE) in Q1 2024, mainly due to a decline in loan and other earning asset yields, partially offset by reduced funding costs[176](index=176&type=chunk)[202](index=202&type=chunk) Analysis of Changes in Net Interest Income (FTE basis, in thousands) | Change Factor | Q1 2025 Compared to Q4 2024 | Q1 2025 Compared to Q1 2024 | | :------------ | :-------------------------- | :-------------------------- | | Volume | $3,995 | $98,837 | | Rate | $8,898 | $(31,271) | | Number of days | $(11,738) | $(5,188) | [Non-interest Income](index=59&type=section&id=Non-interest%20Income) Analyzes the various sources of non-interest income and their period-over-period fluctuations Non-interest Income by Category (Dollars in thousands) | Category | March 31, 2025 | March 31, 2024 | $ Change | % Change | | :------- | :------------- | :------------- | :------- | :------- | | Total wealth management | $34,042 | $34,815 | $(773) | (2)% | | Mortgage banking | $20,529 | $27,663 | $(7,134) | (26)% | | Service charges on deposit accounts | $19,362 | $14,811 | $4,551 | 31% | | Gains on investment securities, net | $3,196 | $1,326 | $1,870 | NM | | Fees from covered call options | $3,446 | $4,847 | $(1,401) | (29)% | | Total Other | $20,836 | $42,331 | $(21,495) | (51)% | | **Total Non-interest Income** | **$116,634** | **$140,580** | **$(23,946)** | **(17)%** | - The **17%** decrease in total non-interest income was primarily due to a **$20.0 million** gain from the sale of the RBA division in Q1 2024 and a **$7.1 million** decrease in mortgage banking revenue[177](index=177&type=chunk)[204](index=204&type=chunk)[212](index=212&type=chunk) - Service charges on deposit accounts increased by **31%** (**$4.6 million**) due to higher commercial account analysis fees and the Macatawa acquisition[204](index=204&type=chunk)[209](index=209&type=chunk) [Non-interest Expense](index=63&type=section&id=Non-interest%20Expense) Examines the components of non-interest expense and the factors contributing to their changes Non-interest Expense by Category (Dollars in thousands) | Category | March 31, 2025 | March 31, 2024 | $ Change | % Change | | :------- | :------------- | :------------- | :------- | :------- | | Total salaries and employee benefits | $211,526 | $195,173 | $16,353 | 8% | | Software and equipment | $34,717 | $27,731 | $6,986 | 25% | | Amortization of other acquisition-related intangible assets | $5,618 | $1,158 | $4,460 | NM | | FDIC insurance | $10,926 | $9,381 | $1,545 | 16% | | FDIC insurance - special assessment | — | $5,156 | $(5,156) | (100)% | | Total other | $38,821 | $32,500 | $6,321 | 19% | | **Total Non-interest Expense** | **$366,090** | **$333,145** | **$32,945** | **10%** | - Total non-interest expense increased by **10%** (**$32.9 million**) in Q1 2025, primarily due to higher salaries and employee benefits (**$16.4 million**), increased software and equipment expenses (**$7.0 million**), and higher amortization of acquisition-related intangibles (**$4.5 million**)[216](index=216&type=chunk)[217](index=217&type=chunk)[218](index=218&type=chunk)[219](index=219&type=chunk) - FDIC insurance expense decreased due to the absence of the **$5.2 million** special assessment recognized in Q1 2024[216](index=216&type=chunk)[220](index=220&type=chunk) [Income Taxes](index=64&type=section&id=Income%20Taxes) Reports income tax expense and effective tax rates, highlighting influencing factors - Income tax expense for Q1 2025 was **$64.0 million**, up from **$62.7 million** in Q1 2024, with effective tax rates of **25.30%** and **25.07%** respectively[222](index=222&type=chunk) - The effective tax rates were influenced by tax effects related to share-based compensation, which provided net excess tax benefits of **$3.7 million** in Q1 2025 compared to **$4.4 million** in Q1 2024[223](index=223&type=chunk) [Operating Segment Results](index=64&type=section&id=Operating%20Segment%20Results) Analyzes the net income and performance of the Company's community banking, specialty finance, and wealth management segments Net Income by Segment (In thousands) | Segment | Q1 2025 Net Income | Q1 2024 Net Income | Change ($) | Change (%) | | :------ | :----------------- | :----------------- | :--------- | :--------- | | Community banking | $134,270 | $120,046 | $14,224 | 11.8% | | Specialty finance | $50,293 | $42,523 | $7,770 | 18.3% | | Wealth management | $4,476 | $24,725 | $(20,249) | (81.9)% | - Community banking net interest income increased by **15%** to **$419.0 million**, driven by growth in average earning assets and stable net interest margin[225](index=225&type=chunk) - Specialty finance net interest income increased by **11%** to **$91.3 million**, primarily due to loan growth from effective marketing and customer servicing[226](index=226&type=chunk) - Wealth management net income decreased significantly due to a **$20.0 million** gain recognized in Q1 2024 from the sale of its RBA division[227](index=227&type=chunk)[228](index=228&type=chunk) [Financial Condition](index=65&type=section&id=Financial%20Condition) Assesses the Company's financial position, including total assets, funding sources, and interest-earning assets [Total Assets and Funding](index=65&type=section&id=Total%20Assets%20and%20Funding) Reports the growth in total assets and the composition of the Company's funding sources - Total assets increased by **$8.3 billion** (**14%**) to **$65.9 billion** at March 31, 2025, compared to March 31, 2024[229](index=229&type=chunk) - Total funding, including deposits, notes, advances, and subordinated debentures, reached **$57.8 billion** at March 31, 2025[229](index=229&type=chunk) [Interest-Earning Assets](index=66&type=section&id=Interest-Earning%20Assets) Details the composition of average interest-earning assets, including loans and liquidity management assets Composition of Average Earning Asset Balances (Three Months Ended March 31, 2025, in thousands) | Category | Balance | Percent of Total | | :------- | :------ | :--------------- | | Mortgage loans held-for-sale | $286,710 | 1% | | Total average loans | $47,833,380 | 79% | | Liquidity management assets | $12,211,485 | 20% | | Other earning assets | $13,140 | 0% | | **Total average earning assets** | **$60,344,715** | **100%** | - Total average loans comprised **79%** of total average earning assets in Q1 2025, with combined commercial and commercial real estate loans making up **59%** of the average loan portfolio[230](index=230&type=chunk)[233](index=233&type=chunk) - Residential real estate loans averaged **$3.5 billion** in Q1 2025, a **30%** increase from Q1 2024, driven by the origination of non-agency mortgages held-for-investment[234](index=234&type=chunk) - Premium finance receivables increased due to effective marketing and customer servicing, with **$4.8 billion** originated in Q1 2025[235](index=235&type=chunk) [Maturities and Sensitivities of Loans to Changes in Interest Rates](index=67&type=section&id=Maturities%20and%20Sensitivities%20of%20Loans%20to%20Changes%20in%20Interest%20Rates) Analyzes the loan portfolio's repricing and maturity characteristics, highlighting interest rate sensitivity Loan Portfolio by Repricing/Maturity and Rate Type (March 31, 2025, in thousands) | Category | One year or less | From one to five years | From five to fifteen years | After fifteen years | Total | | :------- | :--------------- | :--------------------- | :------------------------- | :------------------ | :---- | | Fixed rate | $8,617,862 | $6,687,371 | $2,567,510 | $1,144,359 | $19,017,102 | | Variable rate | $27,240,166 | $635,425 | $1,815,697 | — | $29,691,288 | | **Total loans, net of unearned income** | **$35,858,028** | **$7,322,796** | **$4,383,207** | **$1,144,359** | **$48,708,390** | - A significant portion of the loan portfolio, **$29.7 billion**, is variable rate, with SOFR tenors being the largest index at **$18.3 billion**[239](index=239&type=chunk)[240](index=240&type=chunk) [CREDIT QUALITY](index=68&type=section&id=CREDIT%20QUALITY) Evaluates the Company's credit risk profile, including loan portfolios, non-performing assets, and allowance for credit losses [Commercial and Commercial Real Estate Loan Portfolios](index=68&type=section&id=Commercial%20and%20Commercial%20Real%20Estate%20Loan%20Portfolios) Details the commercial and commercial real estate loan portfolios, including allowance for credit losses and geographic concentrations Commercial and Commercial Real Estate Loan Portfolios (Dollars in thousands) | Category | March 31, 2025 Balance | March 31, 2025 Allowance for Credit Losses | March 31, 2024 Balance | March 31, 2024 Allowance for Credit Losses | | :------- | :--------------------- | :----------------------------------------- | :--------------------- | :----------------------------------------- | | Commercial, industrial, and other | $15,931,326 | $201,183 | $13,503,481 | $166,518 | | Construction and development | $2,448,881 | $71,388 | $2,150,314 | $96,052 | | Non-construction | $10,466,020 | $138,622 | $9,483,123 | $130,000 | | **Total commercial and commercial real estate** | **$28,846,227** | **$411,193** | **$25,136,918** | **$392,570** | - The allowance for credit losses in the commercial loan portfolio increased to **$201.2 million** at March 31, 2025, from **$166.5 million** at March 31, 2024, due to growth and a macroeconomic uncertainty overlay[241](index=241&type=chunk) - **67.4%** of the commercial real estate loan portfolio is concentrated in the Chicago metropolitan area, southern Wisconsin, and west Michigan[242](index=242&type=chunk) [Past Due Loans and Non-Performing Assets](index=69&type=section&id=Past%20Due%20Loans%20and%20Non-Performing%20Assets) Reports on past due loans, non-performing assets, and the allowance for credit losses coverage Non-Performing Assets (Dollars in thousands) | Category | March 31, 2025 | December 31, 2024 | March 31, 2024 | | :------- | :------------- | :---------------- | :------------- | | Total loans past due greater than 90 days and still accruing | $21,187 | $16,182 | $25,951 | | Total nonaccrual loans | $151,203 | $154,641 | $122,408 | | **Total non-performing loans** | **$172,390** | **$170,823** | **$148,359** | | Other real estate owned | $22,625 | $23,116 | $14,538 | | **Total non-performing assets** | **$195,015** | **$193,939** | **$162,897** | - Total non-performing assets increased to **$195.0 million** at March 31, 2025, from **$162.9 million** at March 31, 2024[248](index=248&type=chunk) - The allowance for credit losses as a percentage of nonaccrual loans was **296.25%** at March 31, 2025, indicating strong coverage[248](index=248&type=chunk) [Non-performing Loans Rollforward](index=71&type=section&id=Non-performing%20Loans%20Rollforward) Tracks the changes in non-performing loans, including additions, payments, and charge-offs Non-performing Loans Rollforward (In thousands) | Item | Three Months Ended March 31, 2025 | Three Months Ended March 31, 2024 | | :--- | :-------------------------------- | :-------------------------------- | | Balance at beginning of period | $170,823 | $139,030 | | Additions from becoming non-performing | $27,721 | $23,142 | | Payments received | $(15,965) | $(8,336) | | Charge-offs | $(8,600) | $(14,810) | | **Balance at end of period** | **$172,390** | **$148,359** | - Non-performing loans increased by **$1.6 million** in Q1 2025, with additions of **$27.7 million** partially offset by payments received and charge-offs[250](index=250&type=chunk) [Allowance for Credit Losses](index=71&type=section&id=Allowance%20for%20Credit%20Losses) Details the activity in the allowance for credit losses, including provisions, charge-offs, and recoveries Allowance for Credit Losses Activity (In thousands) | Item | Three Months Ended March 31, 2025 | Three Months Ended March 31, 2024 | | :--- | :-------------------------------- | :-------------------------------- | | Allowance for credit losses at beginning of period | $436,603 | $427,265 | | Provision for credit losses - other | $23,974 | $21,691 | | Total charge-offs | $17,449 | $23,841 | | Total recoveries | $4,809 | $2,091 | | Net charge-offs | $(12,640) | $(21,750) | | **Allowance for credit losses at period end** | **$447,941** | **$427,175** | - The allowance for credit losses increased to **$447.9 million** at March 31, 2025, from **$427.2 million** at March 31, 2024, reflecting management's estimate of lifetime expected credit losses[251](index=251&type=chunk)[255](index=255&type=chunk) - Annualized net charge-offs as a percentage of total loans decreased to **0.11%** in Q1 2025 from **0.21%** in Q1 2024[255](index=255&type=chunk) [Other Real Estate Owned](index=72&type=section&id=Other%20Real%20Estate%20Owned) Reports the balance and changes in other real estate owned, including fair value adjustments Other Real Estate Owned (OREO) Activity (In thousands) | Item | Three Months Ended March 31, 2025 | Three Months Ended March 31, 2024 | | :--- | :-------------------------------- | :-------------------------------- | | Balance at beginning of period | $23,116 | $13,309 | | Fair value adjustments | $(491) | $(207) | | **Balance at end of period** | **$22,625** | **$14,538** | - OREO balance decreased slightly to **$22.6 million** at March 31, 2025, from **$23.1 million** at the beginning of the period, with fair value adjustments of **$(0.5) million**[257](index=257&type=chunk) [Deposits](index=73&type=section&id=Deposits) Analyzes the growth and composition of the Company's deposit base, including interest-bearing and non-interest-bearing categories - Total deposits increased by **$7.1 billion** (**15%**) to **$53.6 billion** at March 31, 2025, compared to March 31, 2024, driven by marketing efforts, loan growth support, the Macatawa acquisition, and deposit base diversity[258](index=258&type=chunk)[259](index=259&type=chunk) Composition of Average Deposit Balances (Three Months Ended March 31, 2025, in thousands) | Category | Balance | Percent | | :------- | :------ | :------ | | Non-interest-bearing | $10,732,156 | 21% | | NOW and interest-bearing demand deposits | $6,046,189 | 11% | | Wealth management deposits | $1,574,480 | 3% | | Money market | $17,581,141 | 34% | | Savings | $6,479,444 | 13% | | Time certificates of deposit | $9,406,126 | 18% | | **Total average deposits** | **$51,819,536** | **100%** | - Brokered deposits represented **7.9%** of total deposits at March 31, 2025, primarily used as an asset-liability management tool[261](index=261&type=chunk) [Other Funding Sources](index=74&type=section&id=Other%20Funding%20Sources) Describes the Company's various non-deposit funding sources, including FHLB advances and subordinated debt Average Balances of Other Funding Sources (Three Months Ended March 31, 2025, in thousands) | Category | Balance | | :------- | :------ | | FHLB advances | $3,151,309 | | Other borrowings | $582,139 | | Subordinated notes | $298,306 | | Junior subordinated debentures | $253,566 | | **Total other funding sources** | **$4,285,320** | - The Company utilizes FHLB advances, notes payable, short-term borrowings, secured borrowings, subordinated debt, and junior subordinated debentures to support growth and manage its asset-liability position[262](index=262&type=chunk) [Shareholders' Equity](index=75&type=section&id=Shareholders'%20Equity) Presents key capital measures and ratios, demonstrating compliance with regulatory standards and dividend declarations Consolidated Capital Measures | Ratio | March 31, 2025 | December 31, 2024 | March 31, 2024 | | :---- | :------------- | :---------------- | :------------- | | Tier 1 leverage ratio | 9.6 % | 9.4 % | 9.4 % | | Tier 1 capital ratio | 10.8 % | 10.7 % | 10.3 % | | Common equity tier 1 capital ratio | 10.1 % | 9.9 % | 9.5 % | | Total capital ratio | 12.5 % | 12.3 % | 12.2 % | | Total average equity-to-total average assets | 10.1 % | 10.1 % | 9.4 % | - The Company maintains capital levels above the 'Well Capitalized' standards established by the Federal Reserve for bank holding companies[269](index=269&type=chunk) - A quarterly cash dividend of **$0.50** per common share was declared in January 2025, an increase from **$0.45** per common share declared in 2024[169](index=169&type=chunk)[268](index=268&type=chunk) [LIQUIDITY](index=75&type=section&id=LIQUIDITY) Explains the Company's liquidity management framework, including sources of funds and stress testing - The Company manages liquidity to ensure sufficient funds for customer needs and loan withdrawals, utilizing stress testing and a liquidity management framework[270](index=270&type=chunk) - Liquidity is provided by maturing assets, liquid assets (money market assets, available-for-sale debt securities, equity securities), and access to external funding sources like FHLB and FRB[271](index=271&type=chunk)[272](index=272&type=chunk) [INFLATION](index=76&type=section&id=INFLATION) Discusses the impact of inflation and interest rate changes on the Company's financial condition - Changes in interest rates typically have a greater impact on a banking organization's financial condition than changes in the rate of inflation[273](index=273&type=chunk) [FORWARD-LOOKING STATEMENTS](index=76&type=section&id=FORWARD-LOOKING%20STATEMENTS) Highlights the inherent uncertainties and risks associated with forward-looking statements in the report - The document contains forward-looking statements regarding future financial performance, loan portfolio, credit reserves, growth plans, and regulatory developments, which are subject to risks and uncertainties[274](index=274&type=chunk) - Actual results could differ materially due to factors such as economic conditions, loan portfolio losses, changes in interest rates, competitive pressures, acquisition difficulties, cybersecurity risks, and regulatory changes[274](index=274&type=chunk)[275](index=275&type=chunk)[276](index=276&type=chunk) [ITEM 3. Quantitative and Qualitative Disclosures About Market Risk](index=78&type=section&id=ITEM%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) This section details the Company's approach to managing market risk, particularly interest rate risk, through asset-liability management policies, simulation analysis, and the use of derivative financial instruments to mitigate potential fluctuations in net interest income [Interest Rate Risk Management](index=78&type=section&id=Interest%20Rate%20Risk%20Management) Describes the Company's strategies and policies for identifying, measuring, and mitigating interest rate risk - The Company manages interest rate risk to balance it with credit risk, liquidity risk, and yield maintenance, with policies established and monitored by management and the boards of directors[279](index=279&type=chunk) - Interest rate risk arises from mismatches in maturity or repricing periods and interest rate indices of assets, liabilities, and derivatives, potentially causing disproportionate changes in net earnings[280](index=280&type=chunk) [Interest Rate Sensitivity Analysis](index=78&type=section&id=Interest%20Rate%20Sensitivity%20Analysis) Presents the potential impact of hypothetical interest rate changes on net interest income through simulation analysis Static Shock Scenarios (Percentage change in net interest income over one year) | Scenario | March 31, 2025 | December 31, 2024 | March 31, 2024 | | :------- | :------------- | :---------------- | :------------- | | +200 Basis Points | (1.8)% | (1.6)% | 1.9% | | +100 Basis Points | (0.6)% | (0.6)% | 1.4% | | -100 Basis Points | (0.2)% | (0.3)% | 1.5% | | -200 Basis Points | (1.2)% | (1.5)% | 1.6% | Ramp Scenarios (Percentage change in net interest income over one year) | Scenario | March 31, 2025 | December 31, 2024 | March 31, 2024 | | :------- | :------------- | :---------------- | :------------- | | +200 Basis Points | 0.2% | (0.2)% | 0.8% | | +100 Basis Points | 0.2% | (0.0)% | 0.6% | | -100 Basis Points | (0.1)% | 0.0% | 1.3% | | -200 Basis Points | (0.5)% | (0.3)% | 2.0% | - The Company's interest rate sensitivity has remained relatively neutral, with management executing various derivative instruments (collars and receive-fixed swaps) to hedge variable-rate loan exposures and mitigate potential fluctuations in net interest margin[285](index=285&type=chunk) [ITEM 4. Controls and Procedures](index=79&type=section&id=ITEM%204.%20Controls%20and%20Procedures) Management, under the supervision of the CEO and CFO, evaluated the effectiveness of the Company's disclosure controls and procedures, concluding they were effective as of March 31, 2025. No material changes to internal control over financial reporting were reported during the period - The Chief Executive Officer and Chief Financial Officer concluded that the Company's disclosure controls and procedures were effective as of March 31, 2025[288](index=288&type=chunk) - No changes in the Company's internal control over financial reporting materially affected, or are reasonably likely to materially affect, internal controls during the period[289](index=289&type=chunk) [PART II. — OTHER INFORMATION](index=80&type=section&id=PART%20II.%20%E2%80%94%20OTHER%20INFORMATION) This section provides additional information not covered in the financial statements, including legal proceedings and risk factors [ITEM 1. Legal Proceedings](index=80&type=section&id=ITEM%201.%20Legal%20Proceedings) This section outlines the Company's legal proceedings, including a settled California PAGA matter and an ongoing Fair Lending matter. Management believes the eventual outcome of these and other ordinary course legal actions will not have a material adverse effect on the Company's operations or financial condition - A California Private Attorney General Act (PAGA) suit against Wintrust Mortgage was settled for an immaterial amount, with court approval and fund disbursement completed by December 31, 2024[291](index=291&type=chunk) - A putative class action alleging fair lending discrimination against Wintrust Mortgage and Wintrust Financial Corporation is ongoing, with Wintrust vigorously disputing the allegations and unable to estimate potential liability[292](index=292&type=chunk) - Management believes that the eventual outcome of all pending or threatened legal actions will not have a material adverse effect on the Company's operations or financial condition[294](index=294&type=chunk) [ITEM 1A. Risk Factors](index=80&type=section&id=ITEM%201A.%20Risk%20Factors) This section states that there have been no material changes to the risk factors previously disclosed in the Company's 2024 Annual Report on Form 10-K - No material changes have occurred in the risk factors since the 2024 Form 10-K filing[295](index=295&type=chunk) [ITEM 2. Unregistered Sales of Equity Securities, Use of Proceeds and Issuer Purchases of Equity Securities](index=80&type=section&id=ITEM%202.%20Unregistered%20Sales%20of%20Equity%20Securities,%20Use%20of%20Proceeds%20and%20Issuer%20Purchases%20of%20Equity%20Securities) This section reports that the Company did not make any purchases of its common shares, nor did any affiliated purchasers, during the three months ended March 31, 2025 - No purchases of the Company's common shares were made by or on behalf of the Company or any affiliated purchaser during the three months ended March 31, 2025[296](index=296&type=chunk) [ITEM 3. Defaults Upon Senior Securities](index=80&type=section&id=ITEM%203.%20Defaults%20Upon%20Senior%20Securities) No information to report for this item [ITEM 4. Mine Safety Disclosures](index=80&type=section&id=ITEM%204.%20Mine%20Safety%20Disclosures) No information to report for this item [ITEM 5. Other Information](index=81&type=section&id=ITEM%205.%20Other%20Information) This section confirms that no directors or officers adopted or terminated Rule 10b5-1 trading plans or non-Rule 10b5-1 trading arrangements during the first quarter of 2025 - None of the Company's directors or officers adopted or terminated a Rule 10b5-1 trading plan or a non-Rule 10b5-1 trading arrangement during the three months ended March 31, 2025[297](index=297&type=chunk) [ITEM 6. Exhibits](index=81&type=section&id=ITEM%206.%20Exhibits) This section lists all exhibits filed as part of the 10-Q report, including certifications from the Chief Executive Officer and Chief Financial Officer, and various XBRL taxonomy documents - Exhibits include certifications (31.1, 31.2, 32.1) from the CEO and CFO, and various XBRL taxonomy extension documents (101.SCH, 101.CAL, 101.LAB, 101.PRE, 101.DEF) for financial information[298](index=298&type=chunk) [Signatures](index=82&type=section&id=Signatures) This section contains the required signatures for the quarterly report, including those of the Executive Vice President and Chief Financial Officer, and the Executive Vice President, Controller and Chief Accounting Officer - The report is signed by David L. Stoehr, Executive Vice President and Chief Financial Officer, and Jeffrey D. Hahnfeld, Executive Vice President, Controller and Chief Accounting Officer, on May 5, 2025[301](index=301&type=chunk)

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].