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 thousand, a 2% increase from Q4 2024[48]. - Basic net income per common share rose to $2.73 in Q1 2025, compared to $2.68 in Q4 2024, marking a 1.9% increase[55]. - The company reported an income before taxes of $253,055,000 in Q1 2025, consistent with $253,081,000 in Q4 2024[55]. - Total non-interest income for Q1 2025 was $116,634 thousand, representing a 3% increase from $113,451 thousand in Q4 2024, but a 17% decrease from $140,580 thousand in Q1 2024[88]. Loan and Deposit Growth - Total loans increased by $653 million, or 6% annualized, while total deposits rose by approximately $1.1 billion, or 8% annualized, in Q1 2025[4]. - Total loans reached $48,708,390 thousand, reflecting a 6% increase from Q4 2024[48]. - Total deposits grew to $53,570,038 thousand, an 8% increase from Q4 2024[48]. - Core loans reached $29,108,500 thousand, showing a 4% increase from the previous quarter and a 15% increase year-over-year[56]. - Total commercial loan balances reached $15,931,326,000 as of March 31, 2025, compared to $15,574,551,000 on December 31, 2024, showing growth in the commercial lending segment[82]. Interest Income and Margin - Net interest income reached $526.5 million in Q1 2025, an increase from $525.1 million in Q4 2024, supported by a net interest margin of 3.54%[5]. - The net interest margin for Q1 2025 was 3.54%, up 5 basis points from Q4 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]. - The interest rate spread for the quarter ended March 31, 2025, was 2.76%, up from 2.65% in the previous quarter[67]. Credit Quality and Losses - Provision for credit losses totaled $24.0 million in Q1 2025, up from $17.0 million in Q4 2024, reflecting a conservative approach to credit management[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 loan losses increased to $378,207 thousand, compared to $364,017 thousand at December 31, 2024[54]. - 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]. Wealth Management - Wealth management revenue decreased by $4.7 million in Q1 2025 due to system transitions and lower market valuations[31]. - As of March 31, 2025, the company had approximately $51.1 billion in assets under administration in its wealth management subsidiaries[45]. - Wealth management deposits rose to $1,574,480 thousand in Q1 2025, up from $1,430,163 thousand in Q4 2024, reflecting an increase of 10.1%[61]. 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 (non-GAAP) improved to 56.95% in Q1 2025 from 57.18% in Q4 2024, indicating better cost management[97]. - 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]. Future Outlook and Risks - The company plans to pursue future acquisitions and internal growth strategies, including the formation of new banks or branch offices[100]. - The company faces potential adverse effects from economic conditions, including U.S. government debt defaults or rating downgrades, which could impact liquidity and loan portfolio performance[102]. - Changes in interest rates and capital markets could significantly affect the company's net interest income and profitability[103]. - The company is focused on technology to enhance product offerings and operational efficiencies, while managing associated risks[103].
Wintrust Financial Corp Series F Pfd(WTFCN) - 2025 Q1 - Quarterly Results