Executive Summary & Highlights Second Quarter and Year-to-Date 2025 Financial Results Wintrust Financial Corporation reported record net income for both the second quarter and the first six months of 2025, demonstrating strong financial performance. Diluted EPS also saw significant increases compared to the prior year and previous quarter. Key Financial Results (Q2 2025 vs. Q1 2025 & H1 2025 vs. H1 2024) | Metric | Q2 2025 | Q1 2025 | Change (QoQ) | H1 2025 | H1 2024 | Change (YoY) | | :-------------------------------- | :------ | :------ | :----------- | :------ | :------ | :----------- | | Net Income (millions) | $195.5 | $189.0 | +$6.5 (+3.4%) | $384.6 | $339.7 | +$44.9 (+13.2%) | | Diluted EPS | $2.78 | $2.69 | +$0.09 (+3.3%) | $5.47 | $5.21 | +$0.26 (+5.0%) | | Pre-tax, Pre-provision Income (non-GAAP, millions) | $289.3 | $277.0 | +$12.3 (+4.4%) | $566.3 | $523.0 | +$43.3 (+8.3%) | CEO Commentary and Business Outlook CEO Timothy S. Crane highlighted record results driven by balance sheet growth and a stable net interest margin. He noted strong, diversified loan and deposit growth, prudent credit management, and expectations for continued positive momentum and net interest income growth in the third quarter. - Record results in Q2 2025 were driven by balance sheet growth and a stable net interest margin of 3.54%4 - Loan growth is expected to be in the mid-to-high single digits in the second half of the year, maintaining conservative credit standards6 - The Company expects strong momentum to continue into the third quarter, with balance sheet growth and disciplined expense control enhancing franchise value6 Second Quarter 2025 Key Highlights The second quarter of 2025 saw significant increases in total loans, deposits, and assets, alongside growth in net interest income and wealth management revenue. Non-interest income was positively impacted by higher mortgage banking revenue, while non-interest expenses increased due to seasonal advertising and acquisition-related costs. Q2 2025 Key Financial Highlights (vs. Q1 2025) | Metric | Q2 2025 | Q1 2025 | Change (QoQ) | | :-------------------------------- | :------ | :------ | :----------- | | Total Loans (increase) | $2.3 billion | - | 19% annualized | | Total Deposits (increase) | $2.2 billion | - | 17% annualized | | Total Assets (increase) | $3.1 billion | - | 19% annualized | | Net Interest Income | $546.7 million | $526.5 million | +$20.2 million | | Net Interest Margin | 3.52% | - | -2 bps (fully taxable-equivalent) | | Wealth Management Revenue | $36.8 million | $34.0 million | +$2.8 million | | Mortgage Banking Revenue | $23.2 million | $20.5 million | +$2.7 million | | Net Gains on Investment Securities | $0.65 million | $3.2 million | -$2.55 million | | Advertising and Marketing Expense | $18.8 million | $12.3 million | +$6.5 million | | Macatawa Bank Acquisition Costs | $2.9 million | $2.7 million | +$0.2 million | | Provision for Credit Losses | $22.2 million | $24.0 million | -$1.8 million | | Net Charge-offs | $13.3 million | $12.6 million | +$0.7 million | Financial Performance Overview Balance Sheet Summary Wintrust's balance sheet showed significant growth in total assets, loans, and deposits during Q2 2025. The Company also completed a preferred stock issuance to redeem existing preferred stock, impacting capital ratios. Balance Sheet Changes (Q2 2025 vs. Q1 2025) | Metric | Q2 2025 | Q1 2025 | Change | | :-------------------- | :------ | :------ | :----- | | Total Assets | $68.98 billion | $65.87 billion | +$3.1 billion | | Total Loans | $51.04 billion | $48.71 billion | +$2.3 billion | | Total Liabilities | $61.76 billion | $59.27 billion | +$2.5 billion | | Total Deposits | $55.82 billion | $53.57 billion | +$2.2 billion | | Loans-to-Deposits Ratio | 91.4% | - | - | | Series F Preferred Stock Issuance | $425 million | - | - | | Series D and E Preferred Stock Redemption | - | - | $412.5 million (July 15, 2025) | | Estimated Tier 1 Capital Ratio (pro forma) | 10.8% | - | - | | Estimated Total Capital Ratio (pro forma) | 12.3% | - | - | | Estimated Tier 1 Leverage Ratio (pro forma) | 9.6% | - | - | Net Interest Income Analysis Net interest income increased in Q2 2025, primarily driven by growth in average earning assets. The net interest margin remained largely stable, with a slight decline due to lower loan yields partially offset by reduced funding costs on interest-bearing deposits. Net Interest Income and Margin (Q2 2025 vs. Q1 2025) | Metric | Q2 2025 | Q1 2025 | Change | | :-------------------------------- | :------ | :------ | :----- | | Net Interest Income | $546.7 million | $526.5 million | +$20.2 million | | Average Earning Asset Growth | $1.9 billion | - | 12% annualized | | Net Interest Margin (GAAP) | 3.52% | 3.54% | -2 bps | | Net Interest Margin (FTE, non-GAAP) | 3.54% | 3.56% | -2 bps | | Yield on Earning Assets | - | - | -2 bps | | Loan Yields | - | - | -5 bps | | Funding Cost on Interest-Bearing Deposits | - | - | -2 bps | Asset Quality Review The allowance for credit losses increased in Q2 2025, while the provision for credit losses decreased due to an improved macroeconomic outlook, despite portfolio growth. Net charge-offs saw a slight increase but remained stable as a percentage of average total loans. Non-performing assets and loans also remained relatively stable. Asset Quality Metrics (Q2 2025 vs. Q1 2025) | Metric | Q2 2025 | Q1 2025 | Change | | :-------------------------------- | :------ | :------ | :----- | | Allowance for Credit Losses (period end) | $457.5 million | $448.4 million | +$9.1 million | | Provision for Credit Losses | $22.2 million | $24.0 million | -$1.8 million | | Net Charge-offs | $13.3 million | $12.6 million | +$0.7 million | | Net Charge-offs (% of average total loans, annualized) | 11 bps | 11 bps | 0 bps | | Non-performing Assets | $212.5 million | $195.0 million | +$17.5 million | | Non-performing Assets (% of total assets) | 0.31% | 0.30% | +0.01% | | Non-performing Loans | $188.8 million | $172.4 million | +$16.4 million | | Non-performing Loans (% of total loans) | 0.37% | 0.35% | +0.02% | - Management believes the allowance for credit losses is appropriate, and the Company maintains strong credit standards with low levels of net charge-offs and non-performing loans627 Non-Interest Income Performance Total non-interest income increased in Q2 2025, primarily driven by higher wealth management and mortgage banking revenues. Gains from covered call options also contributed positively, while net gains on investment securities decreased. Non-Interest Income (Q2 2025 vs. Q1 2025) | Metric | Q2 2025 | Q1 2025 | Change | | :-------------------------------- | :------ | :------ | :----- | | Total Non-Interest Income | $124.1 million | $116.6 million | +$7.5 million | | Wealth Management Revenue | $36.8 million | $34.0 million | +$2.8 million | | Mortgage Banking Revenue | $23.2 million | $20.5 million | +$2.7 million | | Fees from Covered Call Options | $5.6 million | $3.4 million | +$2.2 million | | Net Gains on Investment Securities | $0.65 million | $3.2 million | -$2.55 million | - Wealth management revenue increase was driven by higher asset valuations and increased activity following a system transition32 - Mortgage banking revenue increase was due to higher origination volumes and improved production margin33 Non-Interest Expense Management Total non-interest expense increased in Q2 2025, mainly due to higher salaries and employee benefits, and increased advertising and marketing expenses. Acquisition-related costs for Macatawa Bank also contributed to the rise. Non-Interest Expense (Q2 2025 vs. Q1 2025) | Metric | Q2 2025 | Q1 2025 | Change | | :-------------------------------- | :------ | :------ | :----- | | Total Non-Interest Expense | $381.5 million | $366.1 million | +$15.4 million | | Non-Interest Expense (% of average assets) | 2.32% | 2.32% | Stable | | Salaries and Employee Benefits | - | - | +$8.0 million | | Advertising and Marketing Expenses | $18.8 million | $12.3 million | +$6.5 million | | Macatawa Bank Acquisition-Related Costs | $2.9 million | $2.7 million | +$0.2 million | - Increase in salaries and employee benefits was driven by higher health insurance claims and increased commissions from mortgage originations and wealth management38 - Advertising and marketing expenses were seasonally higher due to planned sports and community sponsorship events39 Income Taxes Income tax expense increased in Q2 2025, resulting in a higher effective tax rate compared to the previous quarter. This was partially influenced by the tax effects of share-based compensation. Income Tax Data (Q2 2025 vs. Q1 2025) | Metric | Q2 2025 | Q1 2025 | Change | | :-------------------------------- | :------ | :------ | :----- | | Income Tax Expense | $71.6 million | $64.0 million | +$7.6 million | | Effective Tax Rate | 26.79% | 25.30% | +1.49% | | Net Excess Tax Benefits (share-based compensation) | $80,000 | $3.7 million | -$3.62 million | Business Segment Performance Community Banking The Community Banking segment expanded its commercial, commercial real estate, and residential real estate loan portfolios in Q2 2025. Mortgage banking revenue increased, and service charges on deposit accounts remained stable, with strong loan pipelines indicating continued growth. - Community banking increased commercial, commercial real estate, and residential real estate loan portfolios in Q2 202543 Community Banking Revenue (Q2 2025 vs. Q1 2025) | Metric | Q2 2025 | Q1 2025 | Change | | :-------------------------------- | :------ | :------ | :----- | | Mortgage Banking Revenue | $23.2 million | $20.5 million | +$2.6 million | | Service Charges on Deposit Accounts | $19.5 million | $19.4 million | +$0.1 million | - Gross commercial and commercial real estate loan pipelines remained solid, indicating momentum for continued loan growth in Q3 202544 Specialty Finance The Specialty Finance segment saw strong originations in insurance premium financing receivables and increased portfolio balances in leasing divisions. Revenues from outsourced administrative services remained stable. - Originations within insurance premium financing receivables portfolios totaled $6.1 billion in Q2 2025, with average balances increasing by $776.6 million QoQ45 Leasing Divisions Portfolio Balances (Q2 2025 vs. Q1 2025) | Metric | Jun 30, 2025 | Mar 31, 2025 | Change | | :-------------------------------- | :----------- | :----------- | :----- | | Capital Leases | $2.8 billion | $2.7 billion | +$0.1 billion | | Loans | $1.2 billion | $1.1 billion | +$0.1 billion | | Equipment on Operating Leases | $289.8 million | $280.5 million | +$9.3 million | - Revenues from outsourced administrative services were $1.3 million in Q2 2025, stable compared to Q1 202545 Wealth Management The Wealth Management segment reported increased revenue in Q2 2025 and maintained substantial assets under administration, offering a comprehensive suite of services. Wealth Management Metrics (Q2 2025 vs. Q1 2025) | Metric | Q2 2025 | Q1 2025 | Change | | :-------------------------------- | :------ | :------ | :----- | | Wealth Management Revenue | $36.8 million | - | Increase | | Assets Under Administration (period end) | $53.2 billion | - | - | | Assets Owned by Company/Subsidiary Banks (within AUA) | $8.9 billion | - | - | Strategic Initiatives Business Combination: Macatawa Bank Acquisition Wintrust completed the acquisition of Macatawa Bank on August 1, 2024, expanding its presence in Michigan. The acquisition involved issuing common stock and added significant assets, deposits, and loans to Wintrust's portfolio, resulting in recorded goodwill. - Acquisition of Macatawa Bank completed on August 1, 2024, expanding operations in Kent, Ottawa, and northern Allegan counties in Michigan47 - Approximately 4.7 million shares of common stock were issued in conjunction with the acquisition47 Macatawa Bank Fair Values at Acquisition (August 1, 2024) | Metric | Amount | | :-------------------- | :----- | | Assets | $2.9 billion | | Deposits | $2.3 billion | | Loans | $1.3 billion | | Goodwill Recorded (as of Jun 30, 2025) | $142.1 million | Detailed Financial Data and Ratios Key Operating Measures This section presents Wintrust's key operating measures and growth rates for Q2 2025, comparing them to the previous quarter and the same quarter last year, highlighting significant increases in net income, revenue, and balance sheet items. Key Operating Measures (Q2 2025 vs. Q1 2025 & Q2 2024) | Metric | Jun 30, 2025 | Mar 31, 2025 | Jun 30, 2024 | % Change (QoQ) | % Change (YoY) | | :-------------------------------- | :----------- | :----------- | :----------- | :------------- | :------------- | | Net income (thousands) | $195,527 | $189,039 | $152,388 | 3% | 28% | | Pre-tax income, excluding provision for credit losses (non-GAAP, thousands) | $289,322 | $277,018 | $251,404 | 4% | 15% | | Net income per common share – Diluted | $2.78 | $2.69 | $2.32 | 3% | 20% | | Cash dividends declared per common share | $0.50 | $0.50 | $0.45 | — | 11% | | Net revenue (thousands) | $670,783 | $643,108 | $591,757 | 4% | 13% | | Net interest income (thousands) | $546,694 | $526,474 | $470,610 | 4% | 16% | | Net interest margin | 3.52% | 3.54% | 3.50% | (2) bps | 2 bps | | Total assets (thousands) | $68,983,318 | $65,870,066 | $59,781,516 | 19% (annualized) | 15% | | Total loans (thousands) | $51,041,679 | $48,708,390 | $44,675,531 | 19% (annualized) | 14% | | Total deposits (thousands) | $55,816,811 | $53,570,038 | $48,049,026 | 17% (annualized) | 16% | | Total shareholders' equity (thousands) | $7,225,696 | $6,600,537 | $5,536,628 | 38% | 31% | Selected Financial Highlights This table provides a comprehensive overview of Wintrust's financial condition, income data, performance ratios, and common share data across multiple quarters, including year-to-date comparisons, offering detailed insights into trends and key metrics. Selected Financial Highlights (Quarterly and Six Months Ended) | Metric | Jun 30, 2025 | Mar 31, 2025 | Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | H1 2025 | H1 2024 | | :-------------------------------- | :----------- | :----------- | :----------- | :----------- | :----------- | :------ | :------ | | Selected Financial Condition Data (at end of period): | | | | | | | | | Total assets (thousands) | $68,983,318 | $65,870,066 | $64,879,668 | $63,788,424 | $59,781,516 | | | | Total loans (thousands) | $51,041,679 | $48,708,390 | $48,055,037 | $47,067,447 | $44,675,531 | | | | Total deposits (thousands) | $55,816,811 | $53,570,038 | $52,512,349 | $51,404,966 | $48,049,026 | | | | Total shareholders' equity (thousands) | $7,225,696 | $6,600,537 | $6,344,297 | $6,399,714 | $5,536,628 | | | | Selected Statements of Income Data: | | | | | | | | | Net interest income (thousands) | $546,694 | $526,474 | $525,148 | $502,583 | $470,610 | $1,073,168 | $934,804 | | Net revenue (thousands) | $670,783 | $643,108 | $638,599 | $615,730 | $591,757 | $1,313,891 | $1,196,531 | | Net income (thousands) | $195,527 | $189,039 | $185,362 | $170,001 | $152,388 | $384,566 | $339,682 | | Net income per common share – Diluted | $2.78 | $2.69 | $2.63 | $2.47 | $2.32 | $5.47 | $5.21 | | Selected Financial Ratios and Other Data: | | | | | | | | | Net interest margin | 3.52% | 3.54% | 3.49% | 3.49% | 3.50% | 3.53% | 3.53% | | Return on average assets | 1.19% | 1.20% | 1.16% | 1.11% | 1.07% | 1.19% | 1.21% | | Return on average common equity | 12.07% | 12.21% | 11.82% | 11.63% | 11.61% | 12.14% | 13.01% | | Period-end loans to deposits ratio | 91.4% | 90.9% | 91.5% | 91.6% | 93.0% | | | | Common equity to assets ratio | 9.3% | 9.4% | 9.1% | 9.4% | 8.6% | | | | Tier 1 leverage ratio | 10.2% | 9.6% | 9.4% | 9.6% | 9.3% | | | | Allowance for credit losses (thousands) | $457,461 | $448,387 | $437,060 | $436,193 | $437,560 | | | | Banking offices | 208 | 208 | 205 | 203 | 177 | | | Consolidated Statements of Condition This table provides a detailed breakdown of Wintrust's assets, liabilities, and shareholders' equity at the end of various periods, illustrating the growth and composition of the Company's balance sheet. Consolidated Statements of Condition (in thousands) | (In thousands) | Jun 30, 2025 | Mar 31, 2025 | Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | | :-------------------------------- | :----------- | :----------- | :----------- | :----------- | :----------- | | Assets | | | | | | | Total assets | $68,983,318 | $65,870,066 | $64,879,668 | $63,788,424 | $59,781,516 | | Loans, net of unearned income | $51,041,679 | $48,708,390 | $48,055,037 | $47,067,447 | $44,675,531 | | Net loans | $50,650,025 | $48,330,183 | $47,691,020 | $46,707,168 | $44,311,812 | | Goodwill | $798,144 | $796,932 | $796,942 | $800,780 | $655,955 | | Liabilities and Shareholders' Equity | | | | | | | Total deposits | $55,816,811 | $53,570,038 | $52,512,349 | $51,404,966 | $48,049,026 | | Non-interest-bearing deposits | $10,877,166 | $11,201,859 | $11,410,018 | $10,739,132 | $10,031,440 | | Interest-bearing deposits | $44,939,645 | $42,368,179 | $41,102,331 | $40,665,834 | $38,017,586 | | Total liabilities | $61,757,622 | $59,269,529 | $58,535,371 | $57,388,710 | $54,244,888 | | Total shareholders' equity | $7,225,696 | $6,600,537 | $6,344,297 | $6,399,714 | $5,536,628 | | Preferred stock | $837,500 | $412,500 | $412,500 | $412,500 | $412,500 | Consolidated Statements of Income This table provides a detailed breakdown of Wintrust's interest income, interest expense, net interest income, non-interest income, non-interest expense, and net income for various quarterly and year-to-date periods, illustrating the Company's profitability trends. Consolidated Statements of Income (in thousands) | (Dollars in thousands, except per share data) | Jun 30, 2025 | Mar 31, 2025 | Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | H1 2025 | H1 2024 | | :-------------------------------- | :----------- | :----------- | :----------- | :----------- | :----------- | :------ | :------ | | Total interest income | $920,908 | $886,965 | $913,501 | $908,604 | $849,979 | $1,807,873 | $1,655,492 | | Total interest expense | $374,214 | $360,491 | $388,353 | $406,021 | $379,369 | $734,705 | $720,688 | | Net interest income | $546,694 | $526,474 | $525,148 | $502,583 | $470,610 | $1,073,168 | $934,804 | | Provision for credit losses | $22,234 | $23,963 | $16,979 | $22,334 | $40,061 | $46,197 | $61,734 | | Total non-interest income | $124,089 | $116,634 | $113,451 | $113,147 | $121,147 | $240,723 | $261,727 | | Total non-interest expense | $381,461 | $366,090 | $368,539 | $360,687 | $340,353 | $747,551 | $673,498 | | Income before taxes | $267,088 | $253,055 | $253,081 | $232,709 | $211,343 | $520,143 | $461,299 | | Income tax expense | $71,561 | $64,016 | $67,719 | $62,708 | $58,955 | $135,577 | $121,617 | | Net income | $195,527 | $189,039 | $185,362 | $170,001 | $152,388 | $384,566 | $339,682 | | Net income per common share - Diluted | $2.78 | $2.69 | $2.63 | $2.47 | $2.32 | $5.47 | $5.21 | Loan Portfolio Details Loan Portfolio Mix and Growth Rates Wintrust's loan portfolio demonstrated strong annualized growth in Q2 2025, with significant increases in both core and niche loan categories, particularly in U.S. property & casualty insurance premium finance receivables and mortgage warehouse lines of credit. Loan Portfolio Growth (Q2 2025 vs. Q1 2025 & Q2 2024) | Loan Category | Jun 30, 2025 (Balance) | % Growth From Mar 31, 2025 (Annualized) | % Growth From Jun 30, 2024 | | :-------------------------------- | :-------------------- | :-------------------------------------- | :-------------------------- | | Total mortgage loans held-for-sale | $299,606 | (22)% | (27)% | | Total core loans | $29,928,663 | 11% | 14% | | Commercial and industrial | $7,028,247 | 9% | 13% | | Leases | $2,757,331 | 11% | 13% | | Industrial real estate | $2,824,889 | 22% | 22% | | Residential real estate loans for investment | $3,814,715 | 29% | 30% | | Total niche loans | $21,113,016 | 31% | 15% | | Mortgage warehouse lines of credit | $1,232,530 | 84% | NM | | U.S. property & casualty insurance | $7,378,340 | 55% | 20% | | Life insurance | $8,506,960 | 7% | 7% | | Total loans, net of unearned income | $51,041,679 | 19% | 14% | Maturities and Sensitivities to Changes in Interest Rates The majority of Wintrust's loan portfolio is variable rate, with significant portions tied to SOFR and CMT indices. The Company actively manages interest rate risk through derivatives and fixed-rate loan originations, maintaining a relatively neutral sensitivity to interest rate changes. Loan Portfolio by Rate Type and Maturity (As of Jun 30, 2025) | Loan Category | Fixed Rate (thousands) | Variable Rate (thousands) | Total (thousands) | | :-------------------------------- | :--------------------- | :---------------------- | :---------------- | | Commercial | $6,318,241 | $10,069,190 | $16,387,431 | | Commercial real estate | $3,884,862 | $9,407,148 | $13,292,010 | | Residential real estate | $1,148,727 | $2,800,055 | $3,948,782 | | Premium finance receivables - property & casualty | $8,323,176 | — | $8,323,176 | | Premium finance receivables - life insurance | $493,690 | $8,013,270 | $8,506,960 | | Total loans, net of unearned income | $20,226,293 | $30,815,386 | $51,041,679 | - Variable rate loans are primarily tied to SOFR tenors ($19.5 billion) and 12-month CMT ($6.9 billion)7881 - Interest rate sensitivity remains relatively neutral, with management using derivative instruments (collars, receive fixed swaps) and longer-term fixed-rate loan originations to mitigate fluctuations76 Deposit Portfolio Details Deposit Portfolio Mix and Growth Rates Wintrust experienced strong annualized deposit growth in Q2 2025, with significant increases in NOW and interest-bearing demand deposits, money market accounts, and time certificates of deposit, while non-interest-bearing deposits saw a slight decline. Deposit Portfolio Growth (Q2 2025 vs. Q1 2025 & Q2 2024) | Deposit Category | Jun 30, 2025 (Balance) | % Growth From Mar 31, 2025 (Annualized) | % Growth From Jun 30, 2024 | | :-------------------------------- | :-------------------- | :-------------------------------------- | :-------------------------- | | Non-interest-bearing | $10,877,166 | (12)% | 8% | | NOW and interest bearing demand deposits | $6,795,725 | 29% | 34% | | Wealth management deposits | $1,595,764 | 53% | 7% | | Money market | $19,556,041 | 33% | 20% | | Savings | $6,659,419 | 5% | 13% | | Time certificates of deposit | $10,332,696 | 15% | 11% | | Total deposits | $55,816,811 | 17% | 16% | Time Certificates of Deposit Maturity/Re-pricing Analysis The majority of Wintrust's time certificates of deposit are set to mature or re-price within the next 9 months, with weighted-average rates ranging from 3.64% to 3.92% for maturities up to 12 months. Time Certificates of Deposit Maturity/Re-pricing (As of Jun 30, 2025) | Maturity Period | Total Time Certificates of Deposit (thousands) | Weighted-Average Rate of Maturing Time Certificates of Deposit | | :-------------------- | :------------------------------------------- | :------------------------------------------------------------- | | 1-3 months | $2,486,694 | 3.92% | | 4-6 months | $4,464,126 | 3.80% | | 7-9 months | $2,187,365 | 3.74% | | 10-12 months | $771,114 | 3.64% | | 13-18 months | $262,094 | 3.41% | | 19-24 months | $99,689 | 2.92% | | 24+ months | $61,614 | 2.36% | | Total | $10,332,696 | 3.78% | Net Interest Income and Margin Tables Quarterly Average Balances This table details the quarterly average balances of Wintrust's assets and liabilities, showing growth in total earning assets, loans, and interest-bearing deposits, contributing to the overall balance sheet expansion. Quarterly Average Balances (in thousands) | (In thousands) | Jun 30, 2025 | Mar 31, 2025 | Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | | :-------------------------------- | :----------- | :----------- | :----------- | :----------- | :----------- | | Total earning assets | $62,219,929 | $60,344,715 | $59,848,361 | $57,268,390 | $54,124,706 | | Loans, net of unearned income | $49,517,635 | $47,833,380 | $47,153,014 | $45,920,586 | $43,819,354 | | Total assets | $65,840,345 | $64,107,042 | $63,594,105 | $60,915,283 | $57,493,184 | | Interest-bearing deposits | $42,581,193 | $41,087,380 | $40,602,905 | $38,668,386 | $36,214,313 | | Total interest-bearing liabilities | $46,878,124 | $45,372,700 | $44,893,140 | $43,021,852 | $40,562,392 | | Non-interest-bearing deposits | $10,643,798 | $10,732,156 | $10,718,738 | $10,271,613 | $9,879,134 | Quarterly Net Interest Income This table presents the quarterly net interest income, showing an increase driven by higher interest income from loans and investment securities, partially offset by increased interest expense on deposits. Quarterly Net Interest Income (in thousands) | (In thousands) | Jun 30, 2025 | Mar 31, 2025 | Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | | :-------------------------------- | :----------- | :----------- | :----------- | :----------- | :----------- | | Total interest income | $923,788 | $889,864 | $916,571 | $911,748 | $852,854 | | Total interest expense | $374,214 | $360,491 | $388,353 | $406,021 | $379,369 | | Net interest income (GAAP) | $546,694 | $526,474 | $525,148 | $502,583 | $470,610 | | Net interest income, fully taxable-equivalent (non-GAAP) | $549,574 | $529,373 | $528,218 | $505,727 | $473,485 | Quarterly Net Interest Margin The net interest margin remained largely stable in Q2 2025, with a slight decrease in the yield on earning assets offset by a reduction in the rate paid on interest-bearing deposits. Quarterly Net Interest Margin | Metric | Jun 30, 2025 | Mar 31, 2025 | Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | | :-------------------------------- | :----------- | :----------- | :----------- | :----------- | :----------- | | Yield earned on total earning assets | 5.96% | 5.98% | 6.09% | 6.33% | 6.34% | | Rate paid on total interest-bearing liabilities | 3.20% | 3.22% | 3.44% | 3.75% | 3.76% | | Interest rate spread | 2.76% | 2.76% | 2.65% | 2.58% | 2.58% | | Net interest margin (GAAP) | 3.52% | 3.54% | 3.49% | 3.49% | 3.50% | | Net interest margin, fully taxable-equivalent (non-GAAP) | 3.54% | 3.56% | 3.51% | 3.51% | 3.52% | Year-to-Date Average Balances, Net Interest Income and Margin Year-to-date figures for H1 2025 show growth in average earning assets and net interest income compared to H1 2024, with a stable net interest margin. The interest rate spread also improved. Year-to-Date Average Balances, Net Interest Income and Margin (H1 2025 vs. H1 2024) | Metric | Jun 30, 2025 | Jun 30, 2024 | % Change (YoY) | | :-------------------------------- | :----------- | :----------- | :------------- | | Average Total Earning Assets (thousands) | $61,287,502 | $53,197,365 | +15.2% | | Average Loans, net of unearned income (thousands) | $48,680,160 | $42,974,623 | +13.3% | | Average Total Assets (thousands) | $64,978,481 | $56,547,939 | +14.9% | | Net Interest Income (GAAP, thousands) | $1,073,168 | $934,804 | +14.8% | | Net Interest Margin (GAAP) | 3.53% | 3.53% | Stable | | Interest Rate Spread | 2.76% | 2.62% | +14 bps | Interest Rate Sensitivity Wintrust's net interest income sensitivity to interest rate changes remained relatively neutral as of June 30, 2025, reflecting management's actions to reposition its sensitivity through derivative instruments and fixed-rate loan originations. Interest Rate Sensitivity (Percentage Change in Net Interest Income over One Year) | Scenario | +200 Basis Points | +100 Basis Points | -100 Basis Points | -200 Basis Points | | :-------------------- | :---------------- | :---------------- | :---------------- | :---------------- | | Static Shock Scenario (Jun 30, 2025) | (1.5)% | (0.4)% | (0.2)% | (1.2)% | | Ramp Scenario (Jun 30, 2025) | 0.0% | 0.0% | (0.1)% | (0.4)% | - Management has executed derivative instruments (collars, receive fixed swaps) and originated longer-term fixed-rate loans to hedge variable rate loan exposures and mitigate interest rate risk76 Asset Quality Tables Allowance for Credit Losses The allowance for credit losses increased in Q2 2025, reflecting a provision for credit losses that was lower than the previous quarter. Net charge-offs increased slightly but remained stable as a percentage of total loans. Allowance for Credit Losses Rollforward (in thousands) | (In thousands) | Jun 30, 2025 | Mar 31, 2025 | Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | | :-------------------------------- | :----------- | :----------- | :----------- | :----------- | :----------- | | Allowance for credit losses at beginning of period | $448,387 | $437,060 | $436,193 | $437,560 | $427,504 | | Provision for credit losses - Other | $22,234 | $23,963 | $16,979 | $6,787 | $40,061 | | Total charge-offs | $18,495 | $17,449 | $19,731 | $31,018 | $34,756 | | Total recoveries | $5,155 | $4,809 | $3,806 | $4,283 | $4,770 | | Net charge-offs | ($13,340) | ($12,640) | ($15,925) | ($26,735) | ($29,986) | | Allowance for credit losses at period end | $457,461 | $448,387 | $437,060 | $436,193 | $437,560 | | Annualized net charge-offs as a percentage of total loans | 0.11% | 0.11% | 0.13% | 0.23% | 0.28% | | Allowance for loan losses as a percentage of loans at period end | 0.77% | 0.78% | 0.76% | 0.77% | 0.81% | Allowance and Provision for Credit Losses by Component This table breaks down the provision and allowance for credit losses into components, including loan losses, unfunded lending-related commitments, and held-to-maturity securities losses, showing a decrease in provision for unfunded lending-related commitments. Allowance and Provision for Credit Losses by Component (in thousands) | (In thousands) | Jun 30, 2025 | Mar 31, 2025 | Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | | :-------------------------------- | :----------- | :----------- | :----------- | :----------- | :----------- | | Provision for loan losses - Other | $26,607 | $26,826 | $19,852 | $6,782 | $45,111 | | Provision for unfunded lending-related commitments losses - Other | ($4,325) | ($2,852) | ($2,851) | $17 | ($5,212) | | Provision for held-to-maturity securities losses | ($48) | ($11) | ($22) | ($12) | $162 | | Provision for credit losses | $22,234 | $23,963 | $16,979 | $22,334 | $40,061 | | Allowance for loan losses | $391,654 | $378,207 | $364,017 | $360,279 | $363,719 | | Allowance for unfunded lending-related commitments losses | $65,409 | $69,734 | $72,586 | $75,435 | $73,350 | | Allowance for held-to-maturity securities losses | $398 | $446 | $457 | $479 | $491 | | Allowance for credit losses | $457,461 | $448,387 | $437,060 | $436,193 | $437,560 | Allowance by Loan Portfolio This table provides a breakdown of the allowance for loan losses and unfunded lending-related commitments by loan portfolio, showing the calculated allowance as a percentage of each category's balance. Allowance by Loan Portfolio (As of Jun 30, 2025, in thousands) | (Dollars in thousands) | Recorded Investment | Calculated Allowance | % of category's balance | | :-------------------------------- | :------------------ | :------------------- | :---------------------- | | Commercial | $16,387,431 | $194,568 | 1.19% | | Commercial real estate | $13,292,010 | $224,358 | 1.69% | | Home equity | $466,815 | $9,221 | 1.98% | | Residential real estate | $3,948,782 | $11,455 | 0.29% | | Premium finance receivables - Property and casualty insurance | $8,323,176 | $15,872 | 0.19% | | Premium finance receivables - Life insurance | $8,506,960 | $740 | 0.01% | | Consumer and other | $116,505 | $849 | 0.73% | | Total loans, net of unearned income | $51,041,679 | $457,063 | 0.90% | | Total core loans | $29,928,663 | $409,826 | 1.37% | | Total niche loans | $21,113,016 | $47,237 | 0.22% | Loan Portfolio Aging This table provides an aging analysis of Wintrust's loan portfolio, categorizing loans by delinquency status (nonaccrual, past due, current) for various loan types, indicating generally low delinquency rates. Loan Portfolio Aging (As of Jun 30, 2025, in thousands) | (In thousands) | Nonaccrual | 90+ days and still accruing | 60-89 days past due | 30-59 days past due | Current | Total | | :-------------------------------- | :--------- | :-------------------------- | :------------------ | :------------------ | :-------- | :---------- | | Commercial | $80,877 | — | $34,855 | $45,103 | $16,226,596 | $16,387,431 | | Commercial real estate | $32,828 | — | $11,257 | $51,173 | $13,196,752 | $13,292,010 | | Home equity | $1,780 | — | $138 | $2,971 | $461,926 | $466,815 | | Residential real estate | $28,047 | — | $8,954 | $38 | $3,777,676 | $3,948,782 | | Premium finance receivables - property & casualty | $30,404 | $14,350 | $25,641 | $29,460 | $8,223,321 | $8,323,176 | | Premium finance receivables - life insurance | — | $327 | $11,202 | $34,403 | $8,461,028 | $8,506,960 | | Consumer and other | $41 | $184 | $61 | $175 | $116,044 | $116,505 | | Total loans, net of unearned income | $173,977 | $14,861 | $92,108 | $163,323 | $50,463,343 | $51,041,679 | Non-Performing Assets Non-performing assets and loans remained relatively stable in Q2 2025, with slight increases in total non-performing loans and other real estate owned. The allowance for loan losses as a percentage of non-accrual loans remained strong. Non-Performing Assets (in thousands) | (Dollars in thousands) | Jun 30, 2025 | Mar 31, 2025 | Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | | :-------------------------------- | :----------- | :----------- | :----------- | :----------- | :----------- | | Total loans past due greater than 90 days and still accruing | $14,861 | $21,187 | $16,182 | $18,628 | $22,852 | | Total non-accrual loans | $173,977 | $151,203 | $154,641 | $161,059 | $151,399 | | Total non-performing loans | $188,838 | $172,390 | $170,823 | $179,687 | $174,251 | | Other real estate owned | $23,615 | $22,625 | $23,116 | $13,682 | $19,731 | | Total non-performing assets | $212,453 | $195,015 | $193,939 | $193,369 | $193,982 | | Total non-performing loans as a percent of total loans | 0.37% | 0.35% | 0.36% | 0.38% | 0.39% | | Total non-performing assets as a percentage of total assets | 0.31% | 0.30% | 0.30% | 0.30% | 0.32% | | Allowance for loan losses and unfunded lending-related commitments losses as a percentage of non-accrual loans | 262.71% | 296.25% | 282.33% | 270.53% | 288.69% | Non-performing Loans Rollforward This table tracks the movement of non-performing loans, showing additions from new non-performing status, returns to performing status, payments, transfers to OREO, and net charge-offs. Non-performing Loans Rollforward (in thousands) | (In thousands) | Jun 30, 2025 | Mar 31, 2025 | Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | | :-------------------------------- | :----------- | :----------- | :----------- | :----------- | :----------- | | Balance at beginning of period | $172,390 | $170,823 | $179,687 | $174,251 | $148,359 | | Additions from becoming non-performing | $48,651 | $27,721 | $30,931 | $42,335 | $54,376 | | Return to performing status | ($6,896) | ($1,207) | ($1,108) | ($362) | ($912) | | Payments received | ($5,602) | ($15,965) | ($12,219) | ($10,894) | ($9,611) | | Transfer to OREO and other repossessed assets | ($1,315) | — | ($17,897) | ($3,680) | ($6,945) | | Charge-offs, net | ($11,734) | ($8,600) | ($5,612) | ($21,211) | ($7,673) | | Balance at end of period | $188,838 | $172,390 | $170,823 | $179,687 | $174,251 | Other Real Estate Owned Other Real Estate Owned (OREO) balances increased slightly in Q2 2025, primarily due to transfers from non-performing loans, with commercial real estate comprising the entire OREO portfolio. Other Real Estate Owned (in thousands) | (In thousands) | Jun 30, 2025 | Mar 31, 2025 | Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | | :-------------------------------- | :----------- | :----------- | :----------- | :----------- | :----------- | | Balance at beginning of period | $22,625 | $23,116 | $13,682 | $19,731 | $14,538 | | Transfers in at fair value, less costs to sell | $1,315 | — | $17,979 | $3,680 | $6,945 | | Balance at end of period | $23,615 | $22,625 | $23,116 | $13,682 | $19,731 | | Balance by Property Type: Commercial real estate | $23,615 | $22,625 | $23,116 | $13,682 | $19,570 | Non-Interest Income Tables Non-Interest Income Details This table provides a detailed breakdown of Wintrust's non-interest income sources, showing growth in wealth management, mortgage banking, and service charges on deposit accounts, while net gains on investment securities decreased significantly QoQ. Non-Interest Income (in thousands) | (Dollars in thousands) | Jun 30, 2025 | Mar 31, 2025 | Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Q2 2025 vs Q1 2025 ($ Change) | Q2 2025 vs Q2 2024 ($ Change) | | :-------------------------------- | :----------- | :----------- | :----------- | :----------- | :----------- | :---------------------------- | :---------------------------- | | Total wealth management | $36,821 | $34,042 | $38,775 | $37,224 | $35,413 | $2,779 | $1,408 | | Mortgage banking | $23,170 | $20,529 | $20,452 | $15,974 | $29,124 | $2,641 | ($5,954) | | Service charges on deposit accounts | $19,502 | $19,362 | $18,864 | $16,430 | $15,546 | $140 | $3,956 | | Gains (losses) on investment securities, net | $650 | $3,196 | ($2,835) | $3,189 | ($4,282) | ($2,546) | $4,932 | | Fees from covered call options | $5,624 | $3,446 | $2,305 | $988 | $2,056 | $2,178 | $3,568 | | Operating lease income, net | $15,166 | $15,287 | $15,327 | $15,335 | $13,938 | ($121) | $1,228 | | Total Non-Interest Income | $124,089 | $116,634 | $113,451 | $113,147 | $121,147 | $7,455 | $2,942 | Mortgage Banking Details Mortgage banking revenue increased in Q2 2025, driven by higher origination volumes and improved production margin. While operational revenue grew, fair value adjustments, particularly MSR changes, had a negative impact. Mortgage Banking Revenue Summary (in thousands) | (Dollars in thousands) | Jun 30, 2025 | Mar 31, 2025 | Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | | :-------------------------------- | :----------- | :----------- | :----------- | :----------- | :----------- | | Total originations for sale | $681,546 | $460,453 | $660,338 | $766,777 | $722,186 | | Production revenue | $13,380 | $9,941 | $6,993 | $13,113 | $14,990 | | Production margin | 2.07% | 1.80% | 1.42% | 1.61% | 2.03% | | Loans serviced for others | $12,470,924 | $12,402,352 | $12,400,913 | $12,253,361 | $12,211,027 | | MSRs, at fair value | $193,061 | $196,307 | $203,788 | $186,308 | $204,610 | | Total operational mortgage banking revenue | $24,541 | $20,413 | $21,905 | $22,884 | $28,377 | | Total fair value mortgage banking revenue | ($1,371) | $116 | ($1,453) | ($6,910) | $747 | | Total mortgage banking revenue | $23,170 | $20,529 | $20,452 | $15,974 | $29,124 | Mortgage Banking Revenue Summary (Six Months Ended) | (Dollars in thousands) | Jun 30, 2025 | Jun 30, 2024 | $ Change | % Change | | :-------------------------------- | :----------- | :----------- | :------- | :------- | | Total originations for sale | $1,141,999 | $1,197,799 | ($55,800) | (5)% | | Production revenue | $23,321 | $28,425 | ($5,104) | (18)% | | Production margin | 1.94% | 2.19% | (25) bps | (11)% | | Total operational mortgage banking revenue | $44,954 | $53,212 | ($8,258) | (16)% | | Total fair value mortgage banking revenue | ($1,255) | $3,575 | ($4,830) | NM | | Total mortgage banking revenue | $43,699 | $56,787 | ($13,088) | (23)% | Non-Interest Expense Tables Non-Interest Expense Details This table provides a detailed breakdown of Wintrust's non-interest expenses, showing increases in salaries and employee benefits, software and equipment, and advertising and marketing, contributing to the overall rise in expenses. Non-Interest Expense (in thousands) | (Dollars in thousands) | Jun 30, 2025 | Mar 31, 2025 | Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Q2 2025 vs Q1 2025 ($ Change) | Q2 2025 vs Q2 2024 ($ Change) | | :-------------------------------- | :----------- | :----------- | :----------- | :----------- | :----------- | :---------------------------- | :---------------------------- | | Total salaries and employee benefits | $219,541 | $211,526 | $212,133 | $211,261 | $198,541 | $8,015 | $21,000 | | Software and equipment | $36,522 | $34,717 | $34,258 | $31,574 | $29,231 | $1,805 | $7,291 | | Data processing | $12,110 | $11,274 | $10,957 | $9,984 | $9,503 | $836 | $2,607 | | Advertising and marketing | $18,761 | $12,272 | $13,097 | $18,239 | $17,436 | $6,489 | $1,325 | | Amortization of other acquisition-related intangible assets | $5,580 | $5,618 | $5,773 | $4,042 | $1,122 | ($38) | $4,458 | | Total Non-Interest Expense | $381,461 | $366,090 | $368,539 | $360,687 | $340,353 | $15,371 | $41,108 | Supplemental Non-GAAP Financial Measures/Ratios This section provides reconciliations of non-GAAP financial measures and ratios used by management to evaluate Wintrust's performance, including taxable-equivalent net interest income, tangible common equity ratio, and return on average tangible common equity, offering a more meaningful view of operational efficiency and profitability. - Management uses non-GAAP measures like taxable-equivalent net interest income, tangible common equity ratio, and return on average tangible common equity to provide a more meaningful view of performance and operating efficiency99100 Reconciliation of Non-GAAP Financial Measures (in thousands) | (Dollars and shares in thousands) | Jun 30, 2025 | Mar 31, 2025 | Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | | :-------------------------------- | :----------- | :----------- | :----------- | :----------- | :----------- | | Net Interest Income (GAAP) | $546,694 | $526,474 | $525,148 | $502,583 | $470,610 | | Net Interest Income (non-GAAP) | $549,574 | $529,373 | $528,218 | $505,727 | $473,485 | | Net interest margin (GAAP) | 3.52% | 3.54% | 3.49% | 3.49% | 3.50% | | Net interest margin, fully taxable equivalent (non-GAAP) | 3.54% | 3.56% | 3.51% | 3.51% | 3.52% | | Efficiency ratio (GAAP) | 56.92% | 57.21% | 57.46% | 58.88% | 57.10% | | Efficiency ratio (non-GAAP) | 56.68% | 56.95% | 57.18% | 58.58% | 56.83% | | Total tangible common shareholders' equity (non-GAAP) | $5,479,557 | $5,275,033 | $5,013,165 | $5,062,568 | $4,447,566 | | Tangible common equity ratio (non-GAAP) | 8.0% | 8.1% | 7.8% | 8.1% | 7.5% | | Tangible book value per common share (non-GAAP) | $81.86 | $78.83 | $75.39 | $76.15 | $72.01 | | Return on average tangible common equity, annualized (non-GAAP) | 14.44% | 14.72% | 14.29% | 13.92% | 13.49% | | Pre-tax income, excluding provision for credit losses (non-GAAP) | $289,322 | $277,018 | $270,060 | $255,043 | $251,404 | Additional Information Wintrust Subsidiaries Wintrust Financial Corporation operates as a financial holding company with 16 community bank subsidiaries and various non-bank businesses, providing a wide range of banking, financial, and wealth management services across multiple states and Canada. - Wintrust operates 16 community bank subsidiaries in the greater Chicago, southern Wisconsin, west Michigan, northwest Indiana, and southwest Florida market areas103 - Non-bank businesses include: FIRST Insurance Funding and Wintrust Life Finance (commercial and life insurance loans), First Insurance Funding of Canada (commercial insurance loans in Canada) - Tricom, Inc. (accounts receivable financing and outsourced administrative services for temporary staffing) - Wintrust Mortgage (residential mortgages for secondary market) - Wintrust Investments, LLC (private client and brokerage services) - Great Lakes Advisors LLC (money management and advisory services) - Wintrust Private Trust Company, N.A. (trust and investment services) - Wintrust Asset Finance (direct leasing) - CDEC (tax-deferred like-kind exchange services)105 Forward-Looking Statements and Risk Factors This section outlines forward-looking statements and associated risks, emphasizing that actual results may differ materially due to numerous factors, including economic conditions, credit quality, interest rate fluctuations, competitive pressures, regulatory changes, and operational risks. - Forward-looking statements are based on management's expectations and projections, not historical facts, and are subject to various risks and uncertainties104 - Economic conditions affecting liquidity, loan portfolios, housing prices, and the job market - Extent of defaults and losses on the loan portfolio, requiring increases in allowance for credit losses - Changes in interest rates, capital markets, and other market indices affecting liquidity and asset/liability values - Competitive pressures impacting pricing and market share - Failure to identify and complete favorable acquisitions or unexpected losses from acquisitions - Harm to reputation, negative perception of financial strength, or inability to raise additional capital - Security breaches, cyberattacks, and failures of information technology systems or third-party vendors - Legislative or regulatory changes, including heightened capital requirements and increased compliance costs - Delinquencies or fraud in premium finance business and credit downgrades of insurance providers - Fluctuations in the stock market impacting wealth management and brokerage operations106107110 Conference Call, Webcast and Replay Information Details for accessing the conference call, webcast, and replay for Wintrust's second quarter and year-to-date 2025 earnings results are provided, including registration links and website locations for additional information. - A conference call for Q2 and year-to-date 2025 earnings results will be held on Tuesday, July 22, 2025, at 10:00 a.m. (CDT)109 - Registration for the call and access to the audio-only webcast and replay, along with an accompanying slide presentation, are available on Wintrust's investor relations website109
Wintrust Financial Corporation(WTFCM) - 2025 Q2 - Quarterly Results