Financial Performance - Wintrust Financial Corporation reported record net income of $384.6 million, or $5.47 per diluted common share, for the first six months of 2025, up from $339.7 million, or $5.21 per diluted common share for the same period in 2024[2]. - Net income for Q2 2025 was $195.5 million, a 3% increase from Q1 2025 and a 28% increase from Q2 2024[48]. - Net income for the second quarter of 2025 was $195,527 thousand, reflecting a 3.9% increase from $189,039 thousand in the first quarter of 2025[51]. - Net income applicable to common shares for Q2 2025 was $188,536 thousand, a 3.1% increase from $182,048 thousand in Q1 2025[102]. Loan and Deposit Growth - Total loans increased by $2.3 billion, or 19% annualized, and total deposits increased by approximately $2.2 billion, or 17% annualized, in the second quarter of 2025[5]. - Total loans reached $51.04 billion, up 19% from the previous year[48]. - Total deposits were $55.82 billion, reflecting a 17% increase year-over-year[48]. - Total loans, net of unearned income increased to $51,041,679 thousand as of June 30, 2025, up from $48,708,390 thousand as of March 31, 2025, representing a growth of 2.74%[85]. Interest Income and Margin - Net interest income rose to $546.7 million in the second quarter of 2025, an increase of $20.2 million compared to the first quarter of 2025, driven by average earning asset growth of $1.9 billion, or 12% annualized[23]. - The net interest margin was stable at 3.52% during the second quarter of 2025, down two basis points compared to the first quarter of 2025[24]. - Total interest income for Q2 2025 reached $920.9 million, an increase of 3.3% from Q1 2025[55]. - The yield on loans, net of unearned income, was 6.51% for the six months ended June 30, 2025, down from 6.85% in the same period of 2024[71]. Non-Interest Income - Non-interest income totaled $124.1 million in the second quarter of 2025, increasing $7.5 million compared to $116.6 million in the first quarter of 2025[31]. - Total Non-Interest Income for Q2 2025 was $124,089,000, an increase of $7,455,000 or 6% compared to Q1 2025[92]. - Trust and asset management income increased to $32,609,000 in Q2 2025, up $3,324,000 or 11% from Q1 2025 and up $2,784,000 or 9% from Q2 2024[92]. Credit Losses and Allowances - Provision for credit losses totaled $22.2 million in the second quarter of 2025, down from $24.0 million in the first quarter of 2025[7]. - The allowance for credit losses increased to $457.5 million as of June 30, 2025, from $448.4 million as of March 31, 2025[26]. - The allowance for loan losses as a percentage of loans at period end was 0.77% as of June 30, 2025, down from 0.78% in the previous quarter[82]. Non-Performing Assets - Non-performing assets totaled $212.5 million, comprising 0.31% of total assets as of June 30, 2025, compared to $195.0 million, or 0.30% of total assets, as of March 31, 2025[30]. - Total non-performing loans rose to $188,838 thousand as of June 30, 2025, compared to $172,390 thousand on March 31, 2025, marking a 9.5% increase[89]. - The percentage of total non-performing assets to total assets was 0.31% as of June 30, 2025, slightly up from 0.30% on March 31, 2025[87]. Operational Efficiency - Total non-interest expense increased to $381.5 million, up 4.0% from Q1 2025[55]. - The efficiency ratio for Q2 2025 was 56.92%, slightly improved from 57.21% in Q1 2025, indicating better operational efficiency[101]. - Total non-interest expense for Q2 2025 was $381,461,000, an increase of $15,371,000 or 4% compared to Q1 2025, and an increase of $41,108,000 or 12% compared to Q2 2024[98]. Shareholder Equity - Total shareholders' equity increased to $7,225,696 thousand in Q2 2025, up from $6,600,537 thousand in Q1 2025, representing a growth of 9.4%[102]. - Book value per common share increased to $95.43 in Q2 2025 from $92.47 in Q1 2025, a rise of 3.2%[102]. - Tangible common equity ratio (non-GAAP) improved to 8.0% in Q2 2025 from 7.8% in Q1 2025, indicating a stronger capital position[102]. Market Challenges - The company is facing challenges in the commercial real estate market, particularly in the Chicago metropolitan area, southern Wisconsin, and west Michigan, which may lead to increased credit loss allowances[107]. - Competitive pressures in the financial services sector may impact the pricing of the company's loan and deposit products, potentially resulting in a loss of market share[107]. - The interest rate environment, including prolonged low rates or rising rates, could materially adversely affect the company's net interest income and profitability[107].
Wintrust Financial Corp Series F Pfd(WTFCN) - 2025 Q2 - Quarterly Results