Financial Performance - Wintrust Financial Corporation reported record quarterly net income of 189.0million,or2.69 per diluted common share, for Q1 2025, compared to 185.4million,or2.63 per diluted common share in Q4 2024[2]. - Net income for Q1 2025 was 189,039,000,aslightincreasefrom185,362,000 in Q4 2024, showing a growth of 0.9%[55]. - Net income applicable to common shares was 182,048,000,comparedto178,371,000 in the previous quarter, reflecting an increase of 3.8%[55]. - The effective tax rate was 25.30% in Q1 2025, down from 26.76% in Q4 2024, influenced by fluctuations in share-based compensation[41]. - The company declared cash dividends of 0.50percommonshare,an11653 million, or 6% annualized, while total deposits increased by approximately 1.1billion,or848.71 billion, up 6% from Q4 2024 and 13% from Q1 2024[48]. - Total deposits increased to 53.57billion,an829,108,500,000 compared to December 31, 2024, reflecting a 15% growth year-over-year[56]. Interest Income and Expenses - Net interest income rose to 526.5millioninQ12025,upfrom525.1 million in Q4 2024, supported by an increase in net interest margin to 3.54%[5]. - Total interest income for Q1 2025 was 886,965,000,adecreaseof2.7913,501,000 in Q4 2024[55]. - Interest expense decreased to 360,491,000inQ12025from388,353,000 in Q4 2024, representing a decline of 7.2%[55]. - Net interest income after provision for credit losses was 502,511,000,comparedto508,169,000 in the previous quarter, reflecting a decrease of 1.3%[55]. - The net interest margin for the three months ended March 31, 2025, was 3.54%, an increase from 3.49% in the previous quarter[67]. Non-Interest Income - Non-interest income totaled 116.6millioninQ12025,anincreaseof3.2 million compared to 113.5millioninQ42024[30].−Totalnon−interestincomeforQ12025was116,634 thousand, a 3% increase compared to 113,451thousandinQ42024,buta17140,580 thousand in Q1 2024[88]. - Brokerage income fell to 4,757thousand,down115,328 thousand in Q4 2024 and down 14% from 5,556thousandinQ12024[88].−Trustandassetmanagementincomedecreasedby1229,285 thousand compared to 33,447thousandinQ42024[88].−Gainsoninvestmentsecuritiesimprovedsignificantlyto3,196 thousand from a loss of 2,835thousandinQ42024[88].CreditQualityandLosses−Theprovisionforcreditlossestotaled24.0 million in Q1 2025, compared to 17.0millioninQ42024,reflectingaconservativeapproachtocreditqualityamidmacroeconomicuncertainty[5].−Netcharge−offsdecreasedto12.6 million, or 11 basis points of average total loans on an annualized basis, down from 15.9million,or13basispointsinQ42024[27].−Theallowanceforcreditlossesattheendoftheperiodwas448,387 thousand, an increase from 437,060thousandattheendofthepreviousquarter[77].−Theannualizednetcharge−offsasapercentageoftotalloanswas0.11447,941 thousand, compared to 436,603thousandinthepreviousquarter[79].AssetManagementandWealthManagement−AsofMarch31,2025,thecompanyhadapproximately51.1 billion in assets under administration in its wealth management subsidiaries[45]. - Wealth management revenue decreased by 4.7millioninQ12025duetosystemtransitionsandlowermarketvaluations[31].−WealthmanagementrevenueforQ12025totaled34.0 million, slightly down from Q4 2024[45]. - The company recorded a net gain of approximately 19.3millionfromthesaleofitsRetirementBenefitsAdvisorsdivisioninQ12024[47].−Thecompanyissubjecttovariousrisks,includingfluctuationsinstockmarketconditionsthatcouldadverselyaffectitswealthmanagementandbrokerageoperations[106].OperationalEfficiencyandExpenses−Totalnon−interestexpenseforQ12025was366,090,000, a decrease from 368,539,000inQ42024,reflectingareductionof0.4211,526 thousand in Q1 2025, a slight decrease of 0.3% compared to 212,133thousandinQ42024[93].−Theefficiencyratio(GAAP)forthequarterwas57.21366,090 thousand in Q1 2025 from $368,539 thousand in Q4 2024, a reduction of 0.4%[93]. - The company emphasizes the importance of technology in providing products and services that meet customer demands and improve operational efficiency[103]. 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 faces competitive pressures in the financial services sector, which may impact pricing and market share for its loan and deposit products[103]. - 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 is monitoring the impact of regulatory changes and heightened capital requirements on its operations and financial performance[103]. - The Company acknowledges the potential adverse effects of natural disasters and climate change on its operations[106].
Wintrust(WTFC)2025-04-21 21:24