WINTRUST FINL(US:WTFCP)2025-01-21 22:17Financial 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 a 11.6% increase 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 for the quarter, reflecting a 9.99% increase compared to $170,001 thousand in the previous quarter[62]. - Net income rose to $185,362 thousand for the quarter, reflecting a 9.99% increase compared to $170,001 thousand in the previous quarter[62]. - 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]. 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 2.16% from $51,404,966 thousand in the previous quarter[62]. - Total loans increased by 8% to $48.1 billion in Q4 2024 compared to Q3 2024, while total deposits rose by 9% to $52.5 billion[59]. - Non-interest-bearing deposits increased to $11,410,018 thousand, up 6.25% from $10,739,132 thousand 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 $793,848,000 in Q4 2023, representing a year-over-year growth of 15.1%[67]. - Net interest income after provision for credit losses for Q4 2024 was $508,169,000, compared to $427,066,000 in Q4 2023, reflecting a 19.0% increase[67]. - The net interest margin (GAAP) for Q4 2024 was 3.49%, unchanged from the previous quarter[79]. 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 Q4 2024 was $113,451, a slight increase of $304 or 0% compared to Q3 2024, and an increase of $12,622 or 13% compared to Q4 2023[102]. - Total wealth management income for the year increased to $146,227, up $15,620 or 12% from $130,607 in 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 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) for Q4 2024 was 57.46%, improving from 58.88% in Q3 2024[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 credit losses stood at $437,060 thousand, slightly up from $436,193 thousand in the prior quarter[64]. - Total charge-offs for the three months ended December 31, 2024, amounted to $19,731,000, a decrease from $31,018,000 in the previous quarter, representing a reduction of about 36%[93]. Acquisitions and Strategic Initiatives - The Company completed the acquisition of Macatawa Bank Corporation on August 1, 2024, with preliminary goodwill recorded at approximately $142.1 million[56]. - 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]. - The company plans to continue expanding its community bank subsidiaries and branch locations across multiple states, including Illinois, Wisconsin, and Michigan[115][116]. - Wintrust intends to enhance its product offerings through divisions such as Wintrust Mortgage and Wintrust Investments, focusing on residential mortgages and private client services[118]. Market and Economic Conditions - Management anticipates potential challenges from economic conditions, including interest rate fluctuations and competitive pressures in the financial services industry[119]. - The company is exploring future acquisitions in the banking and specialty finance sectors to bolster growth and market presence[119]. - The transition from LIBOR to an alternative benchmark rate may impact current and future transactions[122]. Regulatory and Compliance Risks - The Company is facing changes in accounting standards and regulations that may impact its financial statements[122]. - Legislative changes could affect the regulation of financial services and the products offered by the Company[122]. - Increased FDIC insurance premiums and special assessments could affect the Company's financial position[122].