WINTRUST FINL(US:WTFCP)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 thousand, a 2% increase from Q4 2024 and a 1% increase from Q1 2024[48]. - Net income applicable to common shares was $182,048,000, compared to $178,371,000 in Q4 2024, indicating an increase of 3.1%[55]. - Basic net income per common share rose to $2.73 from $2.68 in Q4 2024, marking a 1.9% increase[55]. - The effective tax rate was 25.30% in Q1 2025, down from 26.76% in Q4 2024, influenced by share-based compensation tax effects[41]. 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 $48,708,390 thousand in Q1 2025, up 6% from Q4 2024 and 13% from Q1 2024[48]. - Total deposits rose to $53,570,038 thousand, compared to $52,512,349 thousand in the previous quarter, marking an increase of 2.01%[54]. - Core loans increased by 4% from $28,804,138,000 on December 31, 2024, to $29,108,500,000 on March 31, 2025, with a year-over-year growth of 15%[56]. - Total commercial loan balances increased to $15,931,326 thousand as of March 31, 2025, up from $15,574,551 thousand at December 31, 2024, representing a growth of 2.3%[82]. Interest Income and Margin - Net interest income rose to $526.5 million in Q1 2025, an increase of $1.3 million from Q4 2024, supported by a net interest margin of 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]. - The net interest margin for Q1 2025 was 3.54%, a 5 basis point increase from Q4 2024[48]. - The total interest-bearing liabilities for the quarter ended March 31, 2025, were 3.22%, down from 3.44% in the previous quarter[67]. Non-Interest Income - Non-interest income totaled $116.6 million in Q1 2025, an increase of $3.2 million from $113.5 million in Q4 2024[30]. - Total wealth management income decreased by 12% to $34,042 thousand in Q1 2025 from $38,775 thousand in Q4 2024[88]. - Brokerage income decreased by 11% to $4,757 thousand in Q1 2025 compared to $5,328 thousand in Q4 2024[88]. - Gains on investment securities improved significantly to $3,196 thousand in Q1 2025 from a loss of $2,835 thousand in Q4 2024[88]. Credit Losses and Charge-Offs - The provision for credit losses totaled $24.0 million in Q1 2025, up from $17.0 million in Q4 2024, reflecting macroeconomic outlook impacts[5]. - Net charge-offs decreased to $12.6 million in Q1 2025, or 11 basis points of average total loans, compared to $15.9 million, or 13 basis points in Q4 2024[5]. - 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]. Asset Growth - Total assets increased by $1.0 billion in Q1 2025 compared to Q4 2024, driven by strong loan and deposit growth[19]. - Total assets increased to $65,870,066 thousand in Q1 2025, reflecting a 6% increase from Q4 2024 and a 14% increase from Q1 2024[48]. - The total shareholders' equity increased to $6,600,537 thousand as of September 30, 2025, compared to $6,344,297 thousand at the end of the previous quarter[98]. Operational Efficiency - Total non-interest expense was $366,090,000, a slight decrease from $368,539,000 in Q4 2024[55]. - 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 efficiency ratio (non-GAAP) improved to 56.95% for the quarter ended September 30, 2025, compared to 57.18% in the previous quarter[97]. Strategic Initiatives and Risks - The Company plans to pursue future acquisitions in banking and specialty finance to enhance growth strategies[102]. - The Company anticipates potential risks affecting its financial performance, including economic conditions, trade policy changes, and loan portfolio defaults[102]. - The Company is focused on managing delinquencies and credit losses, which may require increases in its allowance for credit losses[103]. - The Company is transitioning from LIBOR to an alternative benchmark rate for its transactions, which may impact financial results[103].