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 $189,039,000, representing an increase of 2.3% from $185,362,000 in Q4 2024[55]. - Net income for Q1 2025 was $189.0 million, representing a 2% increase from Q4 2024 and a 1% increase from Q1 2024[48]. - 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]. - Total non-interest income for Q1 2025 was $116,634 thousand, representing a $3,183 thousand increase or 3% compared to Q4 2024, but a decrease of $23,946 thousand or 17% compared to Q1 2024[88]. 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%[20]. - Total deposits rose by 8% from $52,512,349,000 on December 31, 2024, to $53,570,038,000 on March 31, 2025, reflecting a 15% increase year-over-year[58]. 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 an improved net interest margin of 3.54%[5]. - The net interest margin for Q1 2025 was 3.54%, up 5 basis points from Q4 2024 but down 3 basis points from Q1 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]. - Total interest expense decreased to $360,491 thousand in Q1 2025 from $388,353 thousand in Q4 2024, a reduction of 7.2%[64]. - The total interest-bearing liabilities for the quarter ended March 31, 2025, were 3.22%, down from 3.44% in the previous quarter[67]. Credit Losses and Charge-offs - 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[27]. - The allowance for credit losses at the end of the period was $448,387,000, an increase from $437,060,000 at the end of the previous quarter[77]. - Total charge-offs for the quarter were $17,449,000, a decrease from $19,731,000 in the previous quarter[77]. - 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]. Asset Management and Wealth Management - 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]. - As of March 31, 2025, the company had approximately $51.1 billion in assets under administration in its wealth management subsidiaries[45]. - Total wealth management income decreased to $34,042 thousand in Q1 2025, down $4,733 thousand or 12% from Q4 2024, and down $773 thousand or 2% from Q1 2024[88]. 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 (GAAP) for the latest quarter was 57.21%, slightly better than 57.46% in the previous quarter, showing improved operational efficiency[97]. - Salaries and employee benefits totaled $211,526 thousand in Q1 2025, a slight decrease from $212,133 thousand in Q4 2024[93]. 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 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 faces competitive pressures in the financial services sector, which may impact pricing and market share for its loan and deposit products[103]. - The Company is monitoring the impact of regulatory changes and heightened capital requirements on its operations and financial performance[106].
Wintrust Financial Corporation(WTFCM) - 2025 Q1 - Quarterly Results