Financial Performance - Wintrust Financial Corporation reported record net income of $823.8 million, or $11.40 per diluted common share, for the year ended December 31, 2025, representing a 19% increase from $695.0 million, or $10.31 per diluted common share, in 2024[2]. - For the fourth quarter of 2025, net income was $223.0 million, or $3.15 per diluted common share, compared to $216.3 million, or $2.78 per diluted common share, in the third quarter of 2025[3]. - Net income for Q4 2025 was $223,024 thousand, reflecting a 3.6% increase compared to $216,254 thousand in the previous quarter[44]. - Net income applicable to common shares for the quarter was $214,657 thousand, up from $188,913 thousand in the prior quarter, representing a growth of 13.5%[94]. - Basic net income per common share for the same period was $3.21, up from $2.82 in the previous quarter, reflecting a 13.8% increase[95]. Loan and Deposit Growth - Total loans increased by $1.0 billion, or 8% annualized, and total deposits also increased by $1.0 billion, or 7% annualized, in the fourth quarter of 2025[5]. - Total loans increased to $53.11 billion, reflecting an 8% growth from Q3 2025[41]. - Total deposits rose to $57.72 billion, a 7% increase compared to Q3 2025[41]. - Total loans, net of unearned income increased to $53,105,101 thousand as of Dec 31, 2025, up from $52,063,482 thousand as of Sep 30, 2025, reflecting a growth of 1.99%[78]. - Total deposits reached $57,717,191 thousand, marking a 7% increase compared to the prior quarter[53]. Interest Income and Margin - Net interest income for the fourth quarter of 2025 reached $583.9 million, an increase of $16.9 million from $567.0 million in the third quarter of 2025, driven by improved net interest margin and average earning asset growth[5]. - The net interest margin improved to 3.52% in the fourth quarter of 2025, up four basis points from the previous quarter[5]. - Total interest income for the three months ended December 31, 2025, was $956.3 million, an increase from $920.9 million in the previous quarter[49]. - The taxable-equivalent net interest margin for Q4 2025 was 3.54%, compared to 3.50% in Q3 2025[93]. Non-Interest Income and Expenses - Non-interest income totaled $130.4 million in the fourth quarter of 2025, a slight decrease from $130.8 million in the third quarter of 2025[25]. - Total non-interest expense for Q4 2025 was $384,453,000, an increase of $4,425,000 or 1% compared to Q3 2025, and an increase of $15,914,000 or 4% compared to Q4 2024[90]. - Total Non-Interest Income for Q4 2025 was $130,390, a decrease of $437 or 0% compared to Q3 2025, but an increase of $16,939 or 15% compared to Q4 2024[84]. Credit Quality and Losses - The provision for credit losses totaled $27.6 million in the fourth quarter of 2025, compared to $21.8 million in the third quarter of 2025[5]. - Non-performing loans increased to $185.8 million, comprising 0.35% of total loans as of December 31, 2025, compared to 0.31% in the prior quarter[6]. - The allowance for credit losses stood at $460,465 thousand, up from $454,586 thousand in the previous quarter[44]. - The total charge-offs for the three months ended December 31, 2025, amounted to $27,076 thousand, a decrease from $28,846 thousand in the previous quarter[74]. Assets and Equity - Total assets grew to $71.14 billion by the end of Q4 2025, a 9% increase from Q3 2025[41]. - Total shareholders' equity (GAAP) increased to $7,258,715 thousand from $7,045,757 thousand in the previous quarter, reflecting a growth of 3.0%[94]. - The common equity to assets ratio was 9.6%, an increase from 9.5% in the previous quarter[44]. - Book value per common share rose to $102.03 from $98.87 in the previous quarter, indicating a growth of 2.0%[94]. Strategic Initiatives and Market Conditions - The company plans to continue its growth strategies, including potential acquisitions of banks and expansion of branch offices[97]. - Economic conditions, including housing prices and job market trends, are critical factors that may impact the company's loan portfolio performance[99]. - The company is facing challenges in the commercial real estate market, particularly in the Chicago metropolitan area, southern Wisconsin, and west Michigan, which may lead to increased credit loss allowances[100]. - There are risks associated with security breaches and cyberattacks that could adversely affect the company's information technology systems[100].

Financial Performance - Interest income for the three months ended September 30, 2025, was $952,408, an increase from $898,295 for the same period in 2024, representing a growth of 6.0%[97] - Net interest income for the three months ended September 30, 2025, was $555,584, up from $492,274 in 2024, reflecting a year-over-year increase of 12.8%[97] - Non-interest income for the three months ended September 30, 2025, totaled $154,391, compared to $133,341 in 2024, marking a growth of 15.8%[97] - For the nine months ended September 30, 2025, net income was $600,820, compared to $509,683 for the same period in 2024, representing an increase of 17.9%[98] - The company reported an income before taxes of $296,041 for the three months ended September 30, 2025, up from $232,709 in 2024, indicating a growth of 27.2%[97] - Net income for the three months ended September 30, 2025, was $216,254,000, compared to $170,001,000 for the same period in 2024, representing a year-over-year increase of 27.2%[171] - The company reported a net income applicable to common shares of $188,913,000 for the three months ended September 30, 2025, compared to $163,010,000 for the same period in 2024, indicating a growth of 15.8%[171] Asset and Liability Management - Total assets at the end of September 30, 2025, were $69,629,638, an increase from $63,788,424 at the end of September 30, 2024, indicating a growth of 9.5%[97] - The total financial liabilities as of September 30, 2025, were $61,205,278 thousand, with a fair value of $61,242,314 thousand[156] - The carrying value of loans held-for-investment at amortized cost was $51,933,889 thousand, with a fair value of $51,255,561 thousand[156] - The total fair value of assets measured at fair value on a recurring basis was $6.22 billion as of September 30, 2025[145] Derivative Financial Instruments - The company utilized various derivative financial instruments to manage interest rate risk, including interest rate swaps and options, enhancing overall yield on investment securities[99][100][101][102] - As of September 30, 2025, the fair value of the Company's derivative financial instruments totaled $208.957 million, compared to $200.027 million as of December 31, 2024, and $255.662 million as of September 30, 2024[104] - The Company reported $65.300 million in derivatives designated as hedging instruments under ASC 815 as of September 30, 2025, a significant increase from $17.330 million as of December 31, 2024[104] - Interest rate derivatives designated as cash flow hedges amounted to $59.667 million as of September 30, 2025, up from $7.329 million at the end of 2024[104] - The total notional amount of cash flow hedges as of September 30, 2025, was $7.1 billion, with a fair value of $54.717 million[108] - The Company expects to reclassify $22.8 million from accumulated other comprehensive income to net interest income over the next 12 months[111] - The Company had 13 interest rate swaps designated as fair value hedges with an aggregate notional amount of $119.2 million as of September 30, 2025[112] - The cumulative amount of fair value hedging adjustment included in the carrying amount of hedged assets was $(5.031) million as of September 30, 2025[114] - The unrealized gain at the end of the period for cash flow hedges was $76.809 million as of September 30, 2025, compared to $75.452 million for the same period in 2024[111] - The Company terminated interest rate swap derivative contracts with a total notional value of $1.5 billion in 2022, resulting in a fair value adjustment recorded in accumulated other comprehensive income[109] - Changes in the fair value of derivatives not designated in hedging relationships are recorded directly in earnings, reflecting the Company's strategy to manage economic exposure to interest rate movements[115] - As of September 30, 2025, the Company had interest rate derivative transactions with an aggregate notional amount of approximately $14.8 billion, up from $13.3 billion as of December 31, 2024[116] - The Company reported interest rate lock commitments with an aggregate notional amount of approximately $379.1 million as of September 30, 2025, compared to $120.7 million as of December 31, 2024[117] - The Company had forward commitments to sell mortgage loans with an aggregate notional amount of approximately $495.5 million as of September 30, 2025, increasing from $377.5 million as of December 31, 2024[117] - The Company held commodity derivative transactions with an aggregate notional amount of approximately $4.6 million as of September 30, 2025, down from $5.2 million as of December 31, 2024[118] - The Company reported foreign currency derivatives with an aggregate notional amount of approximately $50.5 million as of September 30, 2025, decreasing from $97.1 million as of December 31, 2024[119] - The Company recorded a net liability position of $1.6 million for derivatives subject to cross-default provisions as of September 30, 2025[127] - The fair value of interest rate derivatives was $201.3 million in assets and $246.9 million in liabilities as of September 30, 2025[129] - The Company experienced trading gains (losses) of $92, $(245), and $60 for interest rate swaps and caps for the three months ended September 30, 2025, 2024, and nine months ended September 30, 2025, respectively[122] - The Company had mortgage banking derivatives losses of $(584) for the three months ended September 30, 2024, and gains of $2,733 for the nine months ended September 30, 2025[122] - The Company’s net credit exposure for interest rate derivatives was $75.8 million as of September 30, 2025, compared to $41.7 million as of December 31, 2024[129] Fair Value Measurements - As of September 30, 2025, the Company classified $129.8 million of municipal securities as Level 3, with all derived ratings being "BBB" or better[135] - The Company classified $54.7 million of certain delinquent mortgage loans held-for-sale as Level 3, with a weighted average discount rate of 5.14%[137] - The fair value of loans held-for-investment was $129.6 million as of September 30, 2025, down from $158.8 million as of December 31, 2024[147] - The Company classified $190.9 million of mortgage servicing rights (MSRs) as Level 3, with a weighted average discount rate of 10.43%[140] - The aggregate remaining contractual principal balance for mortgage loans held-for-sale was $339.1 million as of September 30, 2025[146] - The weighted average prepayment speed for MSRs was 9.44% at September 30, 2025, with prepayment speeds ranging from 0%-86%[140] - The Company classified $7.1 million of derivative assets related to interest rate locks as Level 3, with a weighted-average pull-through rate of 84.88%[142] - The Company used a weighted average credit discount of 1.29% for delinquent mortgage loans held-for-sale, with credit loss discounts ranging from 0%-26%[137] - As of September 30, 2025, the balance of Level 3 assets includes $129.8 million in municipal securities, $54.7 million in mortgage loans held-for-sale, $49.2 million in loans held-for-investment, $190.9 million in mortgage servicing rights, and $7.1 million in derivative assets[148] - The total net losses recognized in net income for the three months ended September 30, 2025, amounted to $2.1 million for mortgage loans held-for-sale and $1.6 million for derivative assets[148] - Individually assessed loans classified as Level 3 totaled $125.0 million, all measured at fair value based on the underlying collateral[152] - The Company reported fair value losses of $21.5 million for the three months and $42.7 million for the nine months ended September 30, 2025, related to individually assessed loans[150] - Other real estate owned classified as Level 3 was valued at $24.8 million, with a 10% reduction applied to the appraisal value representing estimated selling costs[154] - The valuation of mortgage loans held-for-sale is based on a discount rate of 5.14%, with a credit discount range of 0% to 26%[155] - The Company recorded total fair value losses of $149.8 million, with $124.9 million attributed to individually assessed loans and $24.8 million to other real estate owned[150] - The average life of delinquent loans is reported to be between 1.6 years and 11.7 years[155] - The Company made purchases of $14.7 million in Level 3 assets during the three months ended September 30, 2025[148] - The total balance of mortgage loans held-for-sale increased from $27.2 million on July 1, 2025, to $54.7 million by September 30, 2025[148] Stock-Based Compensation - Stock-based compensation expense for Q3 2025 was $10.1 million, compared to $9.5 million in Q3 2024, reflecting a year-over-year increase of approximately 6.3%[165] - The aggregate intrinsic value of options exercised during the nine months ended September 30, 2025, was approximately $467,000, significantly higher than $50,000 for the same period in 2024[167] - As of September 30, 2025, there were 2,184,000 shares available for future grants under the Company Stock Incentive Plans[164] - The Company granted 256,762 restricted shares with a grant-date fair value of $133.15 during the nine months ended September 30, 2025[168] - The total number of outstanding restricted shares at a weighted average grant-date fair value of $101.71 as of September 30, 2025, was 895,196[168] Dividends and Comprehensive Income - The company declared a quarterly cash dividend of $0.50 per share, amounting to an annualized dividend of $2.00, paid on February 20, May 22, and August 21, 2025[172] - The accumulated other comprehensive income (loss) balance at September 30, 2025, was $(314,808,000), a decrease from $(366,233,000) at July 1, 2025[169] - The net other comprehensive income during the period ended September 30, 2025, was $51,425,000, compared to $47,709,000 for the previous period[169] - The total amount reclassified from accumulated other comprehensive income into net income for the three months ended September 30, 2025, was $3,723,000, compared to $39,000 for the same period in 2024[170] Business Outlook and Risks - The company anticipates future growth through potential acquisitions and internal growth strategies, including the formation of additional de novo banks or branch offices[291] - The company expects that changes in inflation will not have a material impact on its business compared to changes in interest rates[290] - The company is facing challenges related to commercial real estate market conditions in the Chicago metropolitan area, southern Wisconsin, and west Michigan[292] - There is a risk of increased delinquencies and declines in real estate values, which may necessitate further increases in the company's allowance for credit losses[292] - The company is affected by changes in interest rates, which could materially impact net interest income and net interest margin, potentially harming profitability[292] - Competitive pressures in the financial services sector may lead to reduced income from deposits, loans, and advisory fees[292] - The company may encounter difficulties in identifying and completing favorable acquisitions, which could affect future growth[292] - There are risks associated with security breaches and cyberattacks that could adversely affect the company's operations and reputation[292] - The company faces potential liabilities and reputational harm related to the closing of existing branches and the opening of new ones[292] - Changes in regulatory environments and accounting standards may impact the company's financial statements and operations[292] - The company must navigate increased compliance costs and regulatory capital requirements due to evolving regulations[292] - The company is subject to risks associated with the soundness of other financial institutions, which could affect overall market stability[292]

[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)

Financial Performance - Interest income for Q2 2025 reached $920,908,000, an increase of 8.4% compared to $849,979,000 in Q2 2024[90] - Net interest income for Q2 2025 was $546,694,000, up from $470,610,000 in Q2 2024, reflecting a growth of 16.2%[90] - Non-interest income for Q2 2025 totaled $124,089,000, compared to $121,147,000 in Q2 2024, indicating a slight increase of 2.4%[90] - Net income for Q2 2025 was $195,527,000, compared to $152,388,000 in Q2 2024, marking a growth of 28.3%[90] - For the first half of 2025, interest income was $1,807,873,000, up from $1,655,492,000 in the first half of 2024, reflecting a growth of 9.2%[91] - Income before taxes for Q2 2025 was $267,088,000, up from $211,343,000 in Q2 2024, representing a growth of 26.4%[90] Assets and Liabilities - Total assets at the end of Q2 2025 were $68,983,318,000, a significant rise from $59,781,516,000 at the end of Q2 2024, representing an increase of 15.3%[90] - The total fair value of assets measured at fair value on a recurring basis was $6,027.4 million as of June 30, 2025[138] - As of June 30, 2025, total financial assets amounted to $66,365,379, an increase from $62,308,630 as of December 31, 2024, representing a growth of approximately 6.5%[149] - The Company’s derivative liabilities amounted to $161.4 million as of June 30, 2025[138] Derivative Financial Instruments - The company utilizes various derivative financial instruments to manage interest rate risk, including interest rate swaps and collars[92] - As of June 30, 2025, the fair value of the Company's total derivatives was $221.1 million, compared to $200.0 million as of December 31, 2024, indicating an increase of 60.0%[97] - The Company had $63.5 million in derivatives designated as hedging instruments under ASC 815 as of June 30, 2025, up from $17.3 million at the end of 2024[97] - Interest rate derivatives designated as cash flow hedges amounted to $57.2 million as of June 30, 2025, a significant increase from $7.3 million at December 31, 2024[97] - The total notional amount of cash flow hedges was $7.95 billion, with a fair value of $45.9 million as of June 30, 2025[100] Credit Losses and Provisions - The provision for credit losses for the first half of 2025 was $46,197,000, a decrease from $61,734,000 in the first half of 2024, indicating a reduction of 25.2%[91] - The company anticipates potential increases in its allowance for credit losses due to defaults and losses on its loan portfolio[290] Stock and Shareholder Information - Stock-based compensation expense for Q2 2025 was $10.2 million, compared to $9.0 million in Q2 2024, representing a year-over-year increase of 13.3%[159] - The aggregate intrinsic value of options exercised in the six months ended June 30, 2025, was approximately $467,000, significantly higher than $50,000 in the same period of 2024[162] - The company declared a quarterly cash dividend of $0.50 per share, amounting to an annualized dividend of $2.00, paid on February 20, 2025, and again on May 22, 2025[167] Market and Economic Conditions - Economic conditions, including housing prices and job market fluctuations, could adversely affect the company's liquidity and loan portfolio performance[289] - Competitive pressures in the financial services sector may impact the pricing of the company's loan and deposit products, potentially leading to a loss of market share[290] - Changes in interest rates could materially affect the company's net interest income and profitability[290] Regulatory and Risk Factors - The company is subject to regulatory changes that may affect its operations and financial performance[290] - The company faces risks related to cybersecurity, including potential breaches and the impact of human error or cyberattacks[290] - The company acknowledges the potential impact of climate change and natural disasters on its operations[291] Comprehensive Income and Other Financial Metrics - The total accumulated other comprehensive loss as of June 30, 2025, was $(366.233) million, a decrease from $(410.015) million at the beginning of the period[164] - The net other comprehensive income during the period ended June 30, 2025, was $43.782 million, compared to a net loss of $(27.050) million for the same period in 2024[164] - The company’s total comprehensive income for the six months ended June 30, 2025, was $384.566 million, compared to $339.682 million for the same period in 2024[166]

Financial Performance - Wintrust Financial Corporation reported record net income of $384.6 million, or $5.47 per diluted common share, for the first six months of 2025, up from $339.7 million, or $5.21 per diluted common share for the same period in 2024[2]. - Net income for Q2 2025 was $195.5 million, a 3% increase from Q1 2025 and a 28% increase from Q2 2024[48]. - Net income for the second quarter of 2025 was $195,527 thousand, reflecting a 3.9% increase from $189,039 thousand in the first quarter of 2025[51]. - Net income applicable to common shares for Q2 2025 was $188,536 thousand, a 3.1% increase from $182,048 thousand in Q1 2025[102]. Loan and Deposit Growth - Total loans increased by $2.3 billion, or 19% annualized, and total deposits increased by approximately $2.2 billion, or 17% annualized, in the second quarter of 2025[5]. - Total loans reached $51.04 billion, up 19% from the previous year[48]. - Total deposits were $55.82 billion, reflecting a 17% increase year-over-year[48]. - Total loans, net of unearned income increased to $51,041,679 thousand as of June 30, 2025, up from $48,708,390 thousand as of March 31, 2025, representing a growth of 2.74%[85]. Interest Income and Margin - Net interest income rose to $546.7 million in the second quarter of 2025, an increase of $20.2 million compared to the first quarter of 2025, driven by average earning asset growth of $1.9 billion, or 12% annualized[23]. - The net interest margin was stable at 3.52% during the second quarter of 2025, down two basis points compared to the first quarter of 2025[24]. - Total interest income for Q2 2025 reached $920.9 million, an increase of 3.3% from Q1 2025[55]. - The yield on loans, net of unearned income, was 6.51% for the six months ended June 30, 2025, down from 6.85% in the same period of 2024[71]. Non-Interest Income - Non-interest income totaled $124.1 million in the second quarter of 2025, increasing $7.5 million compared to $116.6 million in the first quarter of 2025[31]. - Total Non-Interest Income for Q2 2025 was $124,089,000, an increase of $7,455,000 or 6% compared to Q1 2025[92]. - Trust and asset management income increased to $32,609,000 in Q2 2025, up $3,324,000 or 11% from Q1 2025 and up $2,784,000 or 9% from Q2 2024[92]. Credit Losses and Allowances - Provision for credit losses totaled $22.2 million in the second quarter of 2025, down from $24.0 million in the first quarter of 2025[7]. - The allowance for credit losses increased to $457.5 million as of June 30, 2025, from $448.4 million as of March 31, 2025[26]. - The allowance for loan losses as a percentage of loans at period end was 0.77% as of June 30, 2025, down from 0.78% in the previous quarter[82]. Non-Performing Assets - Non-performing assets totaled $212.5 million, comprising 0.31% of total assets as of June 30, 2025, compared to $195.0 million, or 0.30% of total assets, as of March 31, 2025[30]. - Total non-performing loans rose to $188,838 thousand as of June 30, 2025, compared to $172,390 thousand on March 31, 2025, marking a 9.5% increase[89]. - The percentage of total non-performing assets to total assets was 0.31% as of June 30, 2025, slightly up from 0.30% on March 31, 2025[87]. Operational Efficiency - Total non-interest expense increased to $381.5 million, up 4.0% from Q1 2025[55]. - The efficiency ratio for Q2 2025 was 56.92%, slightly improved from 57.21% in Q1 2025, indicating better operational efficiency[101]. - Total non-interest expense for Q2 2025 was $381,461,000, an increase of $15,371,000 or 4% compared to Q1 2025, and an increase of $41,108,000 or 12% compared to Q2 2024[98]. Shareholder Equity - Total shareholders' equity increased to $7,225,696 thousand in Q2 2025, up from $6,600,537 thousand in Q1 2025, representing a growth of 9.4%[102]. - Book value per common share increased to $95.43 in Q2 2025 from $92.47 in Q1 2025, a rise of 3.2%[102]. - Tangible common equity ratio (non-GAAP) improved to 8.0% in Q2 2025 from 7.8% in Q1 2025, indicating a stronger capital position[102]. Market Challenges - The company is facing challenges in the commercial real estate market, particularly in the Chicago metropolitan area, southern Wisconsin, and west Michigan, which may lead to increased credit loss allowances[107]. - Competitive pressures in the financial services sector may impact the pricing of the company's loan and deposit products, potentially resulting in a loss of market share[107]. - The interest rate environment, including prolonged low rates or rising rates, could materially adversely affect the company's net interest income and profitability[107].

Financial Performance - For the three months ended March 31, 2025, the company reported total interest income of $876,197,000, an increase from $795,044,000 in the same period of 2024, representing a growth of approximately 10.2%[89] - Net interest income for the same period was $526,474,000, up from $464,194,000 in 2024, reflecting an increase of about 13.4%[89] - Non-interest income for Q1 2025 was $116,634,000, compared to $140,580,000 in Q1 2024, showing a decrease of about 17.0%[89] - The company reported net income of $189,039,000 for Q1 2025, compared to $187,294,000 for Q1 2024, reflecting a slight increase of about 0.9%[89] - Basic earnings per share decreased to $2.73 for the three months ended March 31, 2025, compared to $2.93 for the same period in 2024[169] - Other comprehensive income for the three months ended March 31, 2025, was reported at $98,320,000, compared to a loss of $123,917,000 for the same period in 2024[166] - The balance of accumulated other comprehensive loss at March 31, 2025, was $(410,015,000), an improvement from $(485,148,000) at March 31, 2024[166] Asset and Liability Management - Total assets at the end of Q1 2025 were $65,870,066,000, compared to $57,576,933,000 at the end of Q1 2024, marking an increase of approximately 14.4%[89] - The fair value of derivative assets as of March 31, 2025, was $196.696 million, while derivative liabilities were $248.933 million, resulting in a net credit exposure of $62.399 million[123] - The total fair value of available-for-sale securities was $5,351.0 million, with Level 2 assets comprising $4,661.7 million[140] - The total fair value of derivative assets was $204.3 million as of March 31, 2025, with Level 2 assets at $198.8 million[140] - The total fair value of derivative liabilities was $181.2 million as of March 31, 2025[140] Derivative Instruments - The company had derivative assets designated as cash flow hedges amounting to $44,304,000 as of March 31, 2025, up from $17,330,000 as of March 31, 2024[96] - Total derivatives not designated as hedging instruments were $159,953,000 as of March 31, 2025, compared to $182,697,000 as of March 31, 2024, indicating a decrease of about 12.4%[96] - The company utilized interest rate swaps and collars to manage interest rate risk, aiming to stabilize net interest income[97] - As of March 31, 2025, the fair value of interest rate derivatives designated as cash flow hedges was $36,280,000, significantly higher than $7,329,000 as of March 31, 2024[96] - The estimated reclassification from accumulated other comprehensive income to net interest income over the next 12 months is $8.8 million[103] Credit Losses and Provisions - The provision for credit losses increased to $23,963,000 in Q1 2025 from $21,673,000 in Q1 2024, indicating a rise of approximately 10.6%[89] - The total net losses recognized for individually assessed loans were $10.08 million for the three months ended March 31, 2025[144] - The company had 13 interest rate swaps designated as fair value hedges with an aggregate notional amount of $174.5 million as of March 31, 2025[104] Stock and Compensation - Stock-based compensation expense for Q1 2025 was $10.4 million, an increase from $9.2 million in Q1 2024[161] - The aggregate intrinsic value of options exercised in Q1 2025 was approximately $467,000, compared to $50,000 in Q1 2024[164] - As of March 31, 2025, approximately 347,000 shares were available for future grants under the Company Stock Incentive Plans[160] - The company granted 245,654 restricted shares during the three months ended March 31, 2025, with a grant-date fair value of $133.61, compared to 305,807 shares at $98.92 in the prior year[165] Risks and Challenges - The Company faces competitive pressures in the financial services sector, which may impact loan and deposit pricing, potentially leading to a loss of market share and reduced income from various products[276] - There are risks associated with identifying and completing favorable acquisitions, as well as unexpected losses related to recent or future acquisitions[276] - The Company may experience increased costs due to protecting customers from the impact of stolen debit card information[276] - The ability to attract and retain experienced senior management in the banking and financial services industries is crucial for the Company[276] - The Company is subject to potential liabilities and reputational harm related to the closing of existing branches[276] - Changes in U.S. monetary policy and the Federal Reserve's balance sheet may impact the Company's operations[276] - The Company may face increased compliance costs and heightened regulatory capital requirements due to changes in regulations[276] - Fluctuations in the stock market could adversely affect the Company's wealth management and brokerage operations[276] - The Company is at risk of widespread outages of operational or communication systems, which could disrupt services[277] - There are no assurances that future actual results will align with forward-looking statements made by the Company[278]

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 thousand, a 2% increase from Q4 2024[48]. - Basic net income per common share rose to $2.73 in Q1 2025, compared to $2.68 in Q4 2024, marking a 1.9% increase[55]. - The company reported an income before taxes of $253,055,000 in Q1 2025, consistent with $253,081,000 in Q4 2024[55]. - Total non-interest income for Q1 2025 was $116,634 thousand, representing a 3% increase from $113,451 thousand in Q4 2024, but a 17% decrease from $140,580 thousand in Q1 2024[88]. Loan and Deposit Growth - Total loans increased by $653 million, or 6% annualized, while total deposits rose by approximately $1.1 billion, or 8% annualized, in Q1 2025[4]. - Total loans reached $48,708,390 thousand, reflecting a 6% increase from Q4 2024[48]. - Total deposits grew to $53,570,038 thousand, an 8% increase from Q4 2024[48]. - Core loans reached $29,108,500 thousand, showing a 4% increase from the previous quarter and a 15% increase year-over-year[56]. - Total commercial loan balances reached $15,931,326,000 as of March 31, 2025, compared to $15,574,551,000 on December 31, 2024, showing growth in the commercial lending segment[82]. Interest Income and Margin - Net interest income reached $526.5 million in Q1 2025, an increase from $525.1 million in Q4 2024, supported by a net interest margin of 3.54%[5]. - The net interest margin for Q1 2025 was 3.54%, up 5 basis points from Q4 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]. - The interest rate spread for the quarter ended March 31, 2025, was 2.76%, up from 2.65% in the previous quarter[67]. Credit Quality and Losses - Provision for credit losses totaled $24.0 million in Q1 2025, up from $17.0 million in Q4 2024, reflecting a conservative approach to credit management[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 loan losses increased to $378,207 thousand, compared to $364,017 thousand at December 31, 2024[54]. - 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]. Wealth Management - Wealth management revenue decreased by $4.7 million in Q1 2025 due to system transitions and lower market valuations[31]. - As of March 31, 2025, the company had approximately $51.1 billion in assets under administration in its wealth management subsidiaries[45]. - Wealth management deposits rose to $1,574,480 thousand in Q1 2025, up from $1,430,163 thousand in Q4 2024, reflecting an increase of 10.1%[61]. 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 (non-GAAP) improved to 56.95% in Q1 2025 from 57.18% in Q4 2024, indicating better cost management[97]. - Salaries and employee benefits totaled $211,526 thousand in Q1 2025, a slight decrease of 0.3% compared to $212,133 thousand in Q4 2024[93]. Future Outlook and Risks - The company plans to pursue future acquisitions and internal growth strategies, including the formation of new banks or branch offices[100]. - The company faces potential adverse effects from economic conditions, including U.S. government debt defaults or rating downgrades, which could impact liquidity and loan portfolio performance[102]. - Changes in interest rates and capital markets could significantly affect the company's net interest income and profitability[103]. - The company is focused on technology to enhance product offerings and operational efficiencies, while managing associated risks[103].

Capital Adequacy and Regulatory Compliance - The Company has deferred 100% of the day-one impact of adopting CECL for two years and 25% of the cumulative increase or decrease in the allowance for credit losses since adoption[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 are expected to continue exceeding all applicable well-capitalized regulatory capital requirements and the Capital Conservation Buffer of 2.5%[73]. - The Company must maintain a Tier 1 Leverage Ratio of 4.0% or greater, with the current ratio at 9.4%[74]. - The Capital Conservation Buffer is fully phased in at 2.5%, impacting the required minimum risk-based capital ratios[71]. Special Assessments and Regulatory Fees - The Company recorded a special assessment payment of $34.4 million in Q4 2023 related to the FDIC's recoupment of losses from bank failures[87]. - The FDIC's special assessment will be collected over eight quarterly installments starting June 2024[87]. Compliance and Regulatory Changes - The Corporate Transparency Act (CTA) requires the U.S. Treasury Department's Financial Crimes Enforcement Network (FinCEN) to establish a national beneficial ownership information registry, with compliance costs expected to increase as the company adapts to new requirements[93]. - The Bank Secrecy Act (BSA) mandates financial institutions to maintain an anti-money laundering (AML) program, including monitoring and reporting suspicious transactions, which is subject to regulatory scrutiny[91]. - The Anti-Money Laundering Act of 2020 (AMLA) may significantly alter due diligence and reporting requirements for banks, promoting increased information-sharing and technology use[92]. - The SEC's final rules require listed companies to implement clawback policies for incentive-based compensation in the event of financial restatements, with compliance required by November 28, 2023[109]. - The California Consumer Privacy Act (CCPA) imposes obligations on businesses regarding personal information, with potential civil penalties for violations, and similar laws have been adopted in other states[98]. - The Federal Reserve, OCC, and FDIC require banking organizations to notify regulators of significant computer-security incidents within 36 hours, impacting operational stability[100]. - The Gramm-Leach-Bliley Act (GLB Act) requires financial institutions to implement comprehensive information security programs to protect customer information, with potential amendments needed as regulations evolve[97]. - The company is subject to complex and evolving data privacy and cybersecurity laws, which could increase compliance costs and potential liabilities[101]. Workforce and Employee Development - Wintrust employed 5,903 full-time equivalent employees as of December 31, 2024, 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 invested more than 177,000 total hours in training for team members in 2024, maintaining an online training catalog with over 21,000 course offerings[133]. - Over 425 leaders participated in leadership development programs in 2024, supporting the development of future leaders[134]. - Wintrust's workforce is composed of 56% women and 33% racial and ethnic minorities, reflecting its commitment to inclusion[132]. - The company has a robust total rewards package designed to attract and retain talent, including competitive compensation and comprehensive benefits[131]. - Wintrust's mentoring program, launched in 2023, had over 1,300 participants, with 33% being minorities[132]. Operational Changes and Strategic Initiatives - Wintrust Investments plans to transition its wealth management business support to LPL by late January 2025, allowing a focus on growth while outsourcing operational support[107]. - The company consolidated its consumer mortgage loan origination and servicing operations primarily within Wintrust Mortgage to ensure compliance with mortgage-related regulations[122]. Environmental Impact and Sustainability - 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]. - The Company’s climate-focused asset portfolios reached approximately $135 million as of December 31, 2024[138]. Financial Performance and Risk Management - The Static Shock Scenario indicates a potential decrease in net interest income of (1.6)% for +200 basis points at December 31, 2024[525]. - The Ramp Scenario shows a potential decrease in net interest income of (0.2)% for +200 basis points at December 31, 2024[525]. - The Company has executed various derivative instruments to hedge variable-rate loan exposures as part of its interest rate risk management strategy[526]. - The Company entered into covered call option transactions to economically hedge positions and enhance total returns from related securities[527]. - There were no covered call options outstanding as of December 31, 2024 or 2023[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 thousand, an increase from $170,001 thousand in Q3 2024, which is a 7.9% rise[67]. - Net income applicable to common shares for Q4 2024 was $178,371, up from $116,489 in Q4 2023, representing a year-over-year increase of approximately 53.3%[113]. 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]. - Non-interest-bearing deposits grew to $11.41 billion, up 6.25% from $10.74 billion in the previous quarter[66]. 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]. - Total interest income for Q4 2024 was $913,501,000, an increase from $908,604,000 in Q3 2024, representing a 0.1% growth[67]. - Net interest income after provision for credit losses was $508,169,000 for Q4 2024, up from $480,249,000 in Q3 2024, reflecting a 5.0% increase[67]. Non-Interest Income - Total non-interest income for Q4 2024 was $113,451,000, slightly up from $113,147,000 in Q3 2024[112]. - Mortgage banking revenue increased by $4.5 million to $20.5 million in Q4 2024, primarily due to a $5.5 million positive impact from net fair value marks[53]. - Total wealth management income for the year ended December 31, 2024, was $146,227, an increase of $15,620 or 12% compared to 2023[102]. Expenses and Efficiency - Non-interest expenses totaled $368.5 million in the fourth quarter of 2024, an increase of $7.9 million compared to $360.7 million in the third quarter of 2024[43]. - The efficiency ratio (GAAP) improved to 57.46% in Q4 2024 from 58.88% in Q3 2024, indicating better operational efficiency[112]. - Salaries and employee benefits totaled $817.108 million for the year ended December 31, 2024, reflecting an increase of $69.095 million or 9% compared to $748.013 million in 2023[109]. Credit Quality - Non-performing loans decreased to $170.8 million, or 0.36% of total loans, at December 31, 2024, down from $179.7 million, or 0.38% of total loans, at September 30, 2024[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[9]. - The allowance for loan losses as a percentage of loans at period end was 0.76%, slightly down from 0.77% in the previous quarter[93]. Acquisitions and Growth Strategy - The Company completed the acquisition of Macatawa on August 1, 2024, with preliminary goodwill recorded at approximately $142.1 million[56]. - Wintrust operates 16 community bank subsidiaries across multiple states, including Illinois, Wisconsin, Michigan, Florida, and Indiana[115]. - The company is focused on internal growth and plans to form additional de novo banks or branch offices as part of its growth strategy[119]. Market and Economic Conditions - The company faces risks related to economic conditions, including housing prices and job market fluctuations, which may impact liquidity and loan performance[119]. - Regulatory changes and compliance costs are significant factors that could affect the company's operations and profitability[122]. - The transition from LIBOR to alternative benchmark rates may impact current and future transactions for the company[122].

Financial Performance - Wintrust recorded net income of $170.0 million for Q3 2024, a 4% increase from $164.2 million in Q3 2023[171]. - Net income for Q3 2024 totaled $170.0 million, an increase of $5.8 million, or 4%, compared to Q3 2023[190]. - The company recorded an income tax expense of $62.7 million for 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[225]. - The wealth management segment's net income for the nine months ended September 30, 2024, was $40.8 million, compared to $23.6 million for the same period in 2023[231]. Loan Portfolio and Growth - The loan portfolio increased to $47.1 billion as of September 30, 2024, up from $41.4 billion a year earlier, reflecting organic growth and $1.3 billion from the Macatawa acquisition[172]. - The company anticipates continued growth in net interest income, driven by rising interest rates and an expanding loan portfolio[191]. - Mortgage loans originated for sale totaled $766.8 million in Q3 2024, up from $572.6 million in Q3 2023, representing a 34% increase[208]. - The percentage of origination volume from refinancing activities increased to 28% for Q3 2024, compared to 16% for Q3 2023[208]. Income and Expenses - Net interest income rose to $502.6 million in Q3 2024, a 9% increase compared to $462.4 million in Q3 2023, driven by a $5.2 billion increase in average loans[173]. - 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 offset by a decline in mortgage banking revenue[174]. - Non-interest expense increased by 9% to $360.7 million in Q3 2024, primarily due to higher salaries and employee benefits[175]. - Non-interest income for Q3 2024 was $121,147 thousand, up from $112,478 thousand in Q3 2023, indicating growth in fee-based revenue[191]. 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[177]. - Total deposits grew to $51.40 billion, up 14% from $44.99 billion in the previous year[177]. - Total average deposits for Q3 2024 were $48.9 billion, an increase of $4.9 billion, or 11%, from Q3 2023[265]. - Total assets grew to $58,014,347 as of September 30, 2024, from $53,028,199 in 2023, indicating an increase of 9.4%[203]. Credit Quality and Allowance for Losses - The allowance for credit losses is critical, with the loan and held-to-maturity debt securities portfolios representing 80% of total assets[186]. - The allowance for credit losses at the end of the period was $435.7 million, compared to $399.2 million at the end of the same period last year[261]. - Non-performing loans increased to $179.7 million at the end of Q3 2024, up from $133.1 million at the end of Q3 2023[257]. - The total non-performing loans amounted to $179.7 million as of September 30, 2024, compared to $174.3 million as of June 30, 2024[255]. Market and Shareholder Information - The market price per common share increased by 44% to $108.53 compared to $75.50 a year ago[177]. - The Company declared a quarterly cash dividend of $0.45 per common share in January, April, and July of 2024, up from $0.40 per share in the same months of 2023, representing a 12.5% increase[273]. - The total capital ratio as of September 30, 2024, was 12.2%, slightly up from 12.0% in the same period last year, indicating a stable capital position[270]. Strategic Initiatives and Risks - The company plans to form additional de novo banks or branch offices as part of its growth strategy, which may include future acquisitions of banks and specialty finance businesses[279]. - The company faces competitive pressures in the financial services sector that could impact pricing and market share, potentially reducing income from loans and deposits[279]. - Economic conditions, including housing prices and job market fluctuations, may adversely affect the company's liquidity and loan portfolio performance[279]. - The company acknowledges potential reputational harm and negative perceptions of its financial strength as risks to its operations[279].