Wintrust(WTFC)2025-05-05 21:07Financial Performance - For the three months ended March 31, 2025, the company reported net interest income of $526,474,000, an increase from $464,194,000 for the same period in 2024, representing a growth of 13.4%[88] - The total assets at the end of the period were $65,870,066,000, up from $57,576,933,000 as of March 31, 2024, indicating a year-over-year increase of 14.0%[88] - The company recorded a net income of $189,039,000 for the three months ended March 31, 2025, compared to $187,294,000 for the same period in 2024, reflecting a slight increase of 0.9%[88] - Non-interest income for the three months ended March 31, 2025, was $116,634,000, compared to $140,580,000 in the same period of 2024, showing a decrease of 17.0%[88] - The company reported total non-interest expenses of $366,090,000 for the three months ended March 31, 2025, compared to $333,145,000 for the same period in 2024, marking an increase of 9.9%[88] - The net income applicable to common shares for Q1 2025 was $182,048,000, compared to $180,303,000 in Q1 2024, reflecting a slight increase of 1%[168] - Basic earnings per share decreased from $2.93 in Q1 2024 to $2.73 in Q1 2025, a decline of 6.8%[168] Derivative and Risk Management - The company utilized interest rate derivatives, including swaps and collars, to manage interest rate risk, with cash flow hedges designated for variable rate loans[96] - As of March 31, 2025, the total fair value of derivatives was $204,257,000, compared to $200,027,000 as of December 31, 2024, indicating a slight increase of 1.1%[95] - Interest rate derivatives designated as cash flow hedges amounted to $44,304,000 as of March 31, 2025, up from $17,330,000 as of December 31, 2024, reflecting a significant increase of 156.1%[95] - The company had interest rate lock commitments with an aggregate notional amount of approximately $242.5 million as of March 31, 2025[109] - The company actively manages counterparty credit risk through established exposure limits and ongoing financial performance monitoring[118] - As of March 31, 2025, there were no derivatives in a net liability position subject to cross-default provisions[120] Asset Valuation and Fair Value Measurements - The company classified $121.8 million of municipal securities as Level 3, with a focus on equivalent rating, yield, and other pricing terms for valuation[128] - The fair value of mortgage servicing rights (MSRs) was classified as Level 3, with a total of $196.3 million and a weighted average discount rate of 10.94%[134] - The fair value of derivative assets as of March 31, 2025, was $196.696 million, while derivative liabilities stood at $248.933 million, indicating a net credit exposure of $62.399 million[122] - The total fair value of available-for-sale securities was $5,351.0 million, with Level 2 assets comprising $4,661.7 million[139] - The total fair value of derivative assets was $204.3 million as of March 31, 2025, with Level 2 assets at $198.8 million[139] Stock and Compensation - The company recognized stock-based compensation expense of $10.4 million in Q1 2025, compared to $9.2 million in Q1 2024[160] - As of March 31, 2025, there were approximately 347,000 shares available for future grants under the Company Stock Incentive Plans[159] - The intrinsic value of stock options outstanding at March 31, 2025, was $384,000, with a weighted average strike price of $44.81[161] - The intrinsic value of options exercised increased significantly from approximately $50,000 in Q1 2024 to $467,000 in Q1 2025, representing a 834% increase[163] - The number of outstanding restricted shares increased from 829,154 in Q1 2024 to 926,067 in Q1 2025, a growth of 11.7%[164] Regulatory and Market Risks - The Company faces competitive pressures in the financial services sector, which may lead to a loss of market share and reduced income from deposits, loans, and advisory fees[275] - There are risks associated with the Company's ability to identify and complete favorable acquisitions, which could adversely affect profitability[275] - The Company may experience increased costs due to protecting customers from the impact of stolen debit card information[275] - The Company is subject to potential reputational harm and customer loss due to technological changes allowing consumers to complete financial transactions without a bank[275] - Regulatory changes may impact the Company's ability to market products and operate profitably, particularly in the mortgage business[275] - The Company may face increased compliance costs and heightened regulatory capital requirements due to changes in the regulatory environment[275] Other Financial Metrics - The accumulated other comprehensive income improved from a loss of $508,335,000 at the beginning of 2025 to a loss of $410,015,000 by March 31, 2025[165] - The company reported a net other comprehensive income of $98,320,000 for the period ending March 31, 2025, compared to a net loss of $123,917,000 for the same period in 2024[165] - The weighted average common shares outstanding increased from 61,481 in Q1 2024 to 66,726 in Q1 2025, an increase of 8.5%[168]