Wintrust(US:WTFC)2025-04-21 21:24Financial 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, a slight increase from $185,362,000 in Q4 2024, showing a growth of 0.9%[55]. - Net income applicable to common shares was $182,048,000, compared to $178,371,000 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 $0.50 per common share, an 11% increase from Q4 2024[48]. 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%, indicating a strong liquidity position[4]. - Core loans increased by 4% to $29,108,500,000 compared to December 31, 2024, reflecting a 15% growth year-over-year[56]. Interest Income and Expenses - Net interest income rose to $526.5 million in Q1 2025, up from $525.1 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, a decrease of 2.7% from $913,501,000 in Q4 2024[55]. - Interest expense decreased to $360,491,000 in Q1 2025 from $388,353,000 in Q4 2024, representing a decline of 7.2%[55]. - Net interest income after provision for credit losses was $502,511,000, compared to $508,169,000 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 $116.6 million in Q1 2025, an increase of $3.2 million compared to $113.5 million in Q4 2024[30]. - Total non-interest income for Q1 2025 was $116,634 thousand, a 3% increase compared to $113,451 thousand in Q4 2024, but a 17% decrease from $140,580 thousand in Q1 2024[88]. - Brokerage income fell to $4,757 thousand, down 11% from $5,328 thousand in Q4 2024 and down 14% from $5,556 thousand in Q1 2024[88]. - Trust and asset management income decreased by 12% to $29,285 thousand compared to $33,447 thousand in Q4 2024[88]. - Gains on investment securities improved significantly to $3,196 thousand from a loss of $2,835 thousand in Q4 2024[88]. Credit Quality and Losses - The provision for credit losses totaled $24.0 million in Q1 2025, compared to $17.0 million in Q4 2024, reflecting a conservative approach to credit quality amid macroeconomic uncertainty[5]. - Net charge-offs decreased to $12.6 million, or 11 basis points of average total loans on an annualized basis, down from $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 thousand, an increase from $437,060 thousand at the end of the previous quarter[77]. - The annualized net charge-offs as a percentage of total loans was 0.11%, a slight decrease from 0.13% in the previous quarter[77]. - The total allowance for loan losses and unfunded lending-related commitments was $447,941 thousand, compared to $436,603 thousand in the previous quarter[79]. Asset Management and Wealth Management - As of March 31, 2025, the company had approximately $51.1 billion in assets under administration in its wealth management subsidiaries[45]. - 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]. - The company recorded a net gain of approximately $19.3 million from the sale of its Retirement Benefits Advisors division in Q1 2024[47]. - The company is subject to various risks, including fluctuations in stock market conditions that could adversely affect its wealth management and brokerage operations[106]. Operational Efficiency and Expenses - Total non-interest expense for Q1 2025 was $366,090,000, a decrease from $368,539,000 in Q4 2024, reflecting a reduction of 0.4%[55]. - 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]. - The efficiency ratio (GAAP) for the quarter was 57.21%, slightly improved from 57.46% in the previous quarter[97]. - Non-interest expenses decreased to $366,090 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].