WINTRUST FINL(WTFCP) - 2025 Q2 - Quarterly Report

Financial Performance - Interest income for Q2 2025 reached $920,908,000, an increase of 9.3% compared to $849,979,000 in Q2 2024[90] - Net interest income for Q2 2025 was $546,694,000, up from $470,610,000 in Q2 2024, reflecting a growth of 16.2%[90] - Non-interest income for Q2 2025 totaled $124,089,000, compared to $121,147,000 in Q2 2024, indicating a slight increase of 2.4%[90] - Net income for Q2 2025 was $195,527,000, compared to $152,388,000 in Q2 2024, marking a growth of 28.3%[90] - For the first half of 2025, interest income was $1,807,873,000, up from $1,655,492,000 in the first half of 2024, reflecting a growth of 9.2%[91] - Income before taxes for Q2 2025 was $267,088,000, up from $211,343,000 in Q2 2024, representing a growth of 26.4%[90] - The company reported a net credit exposure of $71.4 million for interest rate derivatives as of June 30, 2025, compared to $41.7 million as of December 31, 2024[123] - The company experienced a net income applicable to common shares of $370.584 million for the six months ended June 30, 2025, compared to $325.700 million for the same period in 2024, marking a 13.8% increase[166] - The company’s net income for the six months ended June 30, 2025, was $384.566 million, compared to $339.682 million for the same period in 2024, reflecting a growth of 13.2%[166] Assets and Liabilities - Total assets at the end of Q2 2025 were $68,983,318,000, a significant rise from $59,781,516,000 at the end of Q2 2024, representing an increase of 15.3%[90] - The total financial liabilities were $60,364,408 as of June 30, 2025, slightly down from $60,380,440 at December 31, 2024[149] - The fair value of loans held-for-investment was $136.9 million as of June 30, 2025, compared to $158.8 million as of December 31, 2024[140] - The fair value of mortgage loans held-for-sale was $299.6 million as of June 30, 2025, down from $331.3 million as of December 31, 2024[139] - The balance of loans held-for-sale decreased from $56.3 million on April 1, 2025, to $27.2 million by June 30, 2025[141] Derivatives and Risk Management - The company utilizes various derivative financial instruments to manage interest rate risk, including interest rate swaps and collars[92] - As of June 30, 2025, the fair value of the Company's total derivatives was $221.1 million, compared to $200.0 million as of December 31, 2024, reflecting an increase of 60.0%[97] - The Company had $63.5 million in derivatives designated as hedging instruments under ASC 815 as of June 30, 2025, up from $17.3 million at the end of 2024[97] - The Company does not use derivatives for speculative purposes, focusing instead on managing economic exposure to interest rate movements[108] - The Company had mortgage banking derivatives with interest rate lock commitments totaling approximately $201.0 million and forward commitments to sell mortgage loans amounting to approximately $467.9 million as of June 30, 2025[111] Stock and Shareholder Information - Stock-based compensation expense for Q2 2025 was $10.2 million, compared to $9.0 million in Q2 2024, representing a year-over-year increase of 13.3%[159] - The aggregate intrinsic value of options exercised in the first half of 2025 was approximately $467,000, significantly higher than $50,000 in the same period of 2024[162] - Outstanding restricted shares as of June 30, 2025, were 915,229, with a weighted average grant-date fair value of $101.62, compared to 898,709 shares at a fair value of $90.68 as of June 30, 2024[163] - The company declared a quarterly cash dividend of $0.50 per share, equivalent to an annualized rate of $2.00, paid on February 20, 2025, and again on May 22, 2025[167] Comprehensive Income and Valuation - Total accumulated other comprehensive income increased by $43.782 million during the period ending June 30, 2025, compared to a loss of $410.015 million at the beginning of the period[164] - The company reported net other comprehensive income of $142.102 million for the six months ended June 30, 2025, compared to a loss of $150.967 million for the same period in 2024[164] - The company’s accumulated unrealized losses on securities for the three months ended June 30, 2025, were $(87,000), compared to gains of $1.204 million for the same period in 2024[165] Forward-Looking Statements and Risks - The company emphasizes the importance of forward-looking statements, which are based on management's expectations and involve various risks and uncertainties[289] - Economic conditions, including housing prices and job market fluctuations, could adversely affect the company's liquidity and loan portfolio performance[289] - The company anticipates potential increases in its allowance for credit losses due to defaults and losses on its loan portfolio[290] - Competitive pressures in the financial services sector may impact the pricing of the company's loan and deposit products, potentially leading to a loss of market share[290] - The company faces risks related to cybersecurity, including potential breaches and the impact of human error or cyberattacks[290] - The company acknowledges the potential impact of climate change and natural disasters on its operations[291]