Financial Performance - For the three months ended March 31, 2025, the company reported total interest income of $876,197,000, an increase from $795,044,000 in the same period of 2024, representing a growth of approximately 10.2%[89] - Net interest income for the same period was $526,474,000, up from $464,194,000 in 2024, reflecting an increase of about 13.4%[89] - Non-interest income for Q1 2025 was $116,634,000, compared to $140,580,000 in Q1 2024, showing a decrease of about 17.0%[89] - The company reported net income of $189,039,000 for Q1 2025, compared to $187,294,000 for Q1 2024, reflecting a slight increase of about 0.9%[89] - Basic earnings per share decreased to $2.73 for the three months ended March 31, 2025, compared to $2.93 for the same period in 2024[169] - Other comprehensive income for the three months ended March 31, 2025, was reported at $98,320,000, compared to a loss of $123,917,000 for the same period in 2024[166] - The balance of accumulated other comprehensive loss at March 31, 2025, was $(410,015,000), an improvement from $(485,148,000) at March 31, 2024[166] Asset and Liability Management - Total assets at the end of Q1 2025 were $65,870,066,000, compared to $57,576,933,000 at the end of Q1 2024, marking an increase of approximately 14.4%[89] - The fair value of derivative assets as of March 31, 2025, was $196.696 million, while derivative liabilities were $248.933 million, resulting in a net credit exposure of $62.399 million[123] - The total fair value of available-for-sale securities was $5,351.0 million, with Level 2 assets comprising $4,661.7 million[140] - The total fair value of derivative assets was $204.3 million as of March 31, 2025, with Level 2 assets at $198.8 million[140] - The total fair value of derivative liabilities was $181.2 million as of March 31, 2025[140] Derivative Instruments - The company had derivative assets designated as cash flow hedges amounting to $44,304,000 as of March 31, 2025, up from $17,330,000 as of March 31, 2024[96] - Total derivatives not designated as hedging instruments were $159,953,000 as of March 31, 2025, compared to $182,697,000 as of March 31, 2024, indicating a decrease of about 12.4%[96] - The company utilized interest rate swaps and collars to manage interest rate risk, aiming to stabilize net interest income[97] - As of March 31, 2025, the fair value of interest rate derivatives designated as cash flow hedges was $36,280,000, significantly higher than $7,329,000 as of March 31, 2024[96] - The estimated reclassification from accumulated other comprehensive income to net interest income over the next 12 months is $8.8 million[103] Credit Losses and Provisions - The provision for credit losses increased to $23,963,000 in Q1 2025 from $21,673,000 in Q1 2024, indicating a rise of approximately 10.6%[89] - The total net losses recognized for individually assessed loans were $10.08 million for the three months ended March 31, 2025[144] - The company had 13 interest rate swaps designated as fair value hedges with an aggregate notional amount of $174.5 million as of March 31, 2025[104] Stock and Compensation - Stock-based compensation expense for Q1 2025 was $10.4 million, an increase from $9.2 million in Q1 2024[161] - The aggregate intrinsic value of options exercised in Q1 2025 was approximately $467,000, compared to $50,000 in Q1 2024[164] - As of March 31, 2025, approximately 347,000 shares were available for future grants under the Company Stock Incentive Plans[160] - The company granted 245,654 restricted shares during the three months ended March 31, 2025, with a grant-date fair value of $133.61, compared to 305,807 shares at $98.92 in the prior year[165] Risks and Challenges - The Company faces competitive pressures in the financial services sector, which may impact loan and deposit pricing, potentially leading to a loss of market share and reduced income from various products[276] - There are risks associated with identifying and completing favorable acquisitions, as well as unexpected losses related to recent or future acquisitions[276] - The Company may experience increased costs due to protecting customers from the impact of stolen debit card information[276] - The ability to attract and retain experienced senior management in the banking and financial services industries is crucial for the Company[276] - The Company is subject to potential liabilities and reputational harm related to the closing of existing branches[276] - Changes in U.S. monetary policy and the Federal Reserve's balance sheet may impact the Company's operations[276] - The Company may face increased compliance costs and heightened regulatory capital requirements due to changes in regulations[276] - Fluctuations in the stock market could adversely affect the Company's wealth management and brokerage operations[276] - The Company is at risk of widespread outages of operational or communication systems, which could disrupt services[277] - There are no assurances that future actual results will align with forward-looking statements made by the Company[278]
Wintrust Financial Corp Series F Pfd(WTFCN) - 2025 Q1 - Quarterly Report