Financial Performance - Interest income for Q2 2025 reached $908,017, an increase from $841,320 in Q2 2024, representing a growth of 7.9%[90] - Net interest income for Q2 2025 was $546,694, up from $470,610 in Q2 2024, reflecting a year-over-year increase of 16.2%[90] - Non-interest income for Q2 2025 totaled $124,089, compared to $121,147 in Q2 2024, indicating a slight increase of 2.4%[90] - Net income for the first half of 2025 was $384,566, compared to $339,682 in the first half of 2024, showing a growth of 13.2%[91] - Income before taxes for Q2 2025 was $267,088, up from $211,343 in Q2 2024, representing a growth of 26.4%[90] - Net income for the three months ended June 30, 2025, was $195.527 million, compared to $152.388 million for the same period in 2024, representing a year-over-year increase of 28.3%[166] - Basic earnings per share for the three months ended June 30, 2025, was $2.82, up from $2.35 in the same period of 2024, reflecting a 20% increase[166] - The company reported a net income applicable to common shares of $188.536 million for the three months ended June 30, 2025, compared to $145.397 million in 2024, marking a 29.7% increase[166] Asset and Liability Management - Total assets at the end of Q2 2025 were $68,983,318, a significant rise from $59,781,516 at the end of Q2 2024, marking an increase of 15.3%[90] - Total financial assets amounted to $66,365,379 thousand, an increase from $62,308,630 thousand as of December 31, 2024, representing a growth of approximately 6.5%[149] - Loans held-for-investment at amortized cost reached $50,904,795 thousand as of June 30, 2025, up from $47,896,242 thousand at the end of 2024, indicating a growth of about 6.3%[149] - The total financial liabilities were $60,364,408 thousand as of June 30, 2025, compared to $57,040,424 thousand at the end of 2024, representing an increase of approximately 4.1%[149] Derivative Financial Instruments - 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 derivative financial instruments totaled $221.1 million, compared to $200.0 million as of December 31, 2024, indicating an increase of 10.55%[97] - The Company reported derivative assets designated as cash flow hedges of $63.5 million as of June 30, 2025, up from $17.3 million at the end of 2024, reflecting a significant increase of 267.6%[97] - Interest rate derivatives not designated as hedging instruments amounted to $157.7 million as of June 30, 2025, a decrease of 13.7% from $182.7 million as of December 31, 2024[97] - The total notional amount of cash flow hedges was $7.95 billion as of June 30, 2025, with a fair value of $45.9 million[100] - The Company had 13 interest rate swaps designated as fair value hedges with an aggregate notional amount of $143.1 million as of June 30, 2025[105] - The cumulative amount of fair value hedging adjustment included in the carrying amount of hedged assets was $136.9 million as of June 30, 2025[107] - The unrealized gain at the end of the period for cash flow hedges was $72.5 million as of June 30, 2025, compared to a loss of $49.4 million in the same period of the previous year[104] Credit Losses and Provisions - The provision for credit losses for Q2 2025 was $22,234, down from $40,061 in Q2 2024, indicating a decrease of 44.5%[90] - The Company expects potential increases in its allowance for credit losses due to defaults and losses on its loan portfolio, particularly in the commercial real estate market in specific regions[290] Expenses and Compensation - Total non-interest expense for Q2 2025 was $381,461, compared to $340,353 in Q2 2024, reflecting an increase of 12.1%[90] - Stock-based compensation expense for Q2 2025 was $10.2 million, up from $9.0 million in Q2 2024, marking an increase of approximately 13.3%[159] - The Company granted 254,059 restricted shares with a grant-date fair value of $133.14 as of June 30, 2025, compared to 389,198 shares with a fair value of $99.50 in 2024[163] Market and Economic Conditions - The company noted that changes in inflation are not expected to have a material impact on its business compared to other industries, as its assets and liabilities are primarily monetary[288] - The company anticipates future financial performance to be influenced by economic conditions, housing prices, and job market trends, which may adversely affect liquidity and loan portfolio performance[289] - The interest rate environment, including prolonged low or rising interest rates, may significantly impact the company's net interest income and margin, affecting overall profitability[290] - Competitive pressures in the financial services sector could lead to reduced income from loans, deposits, and advisory fees, potentially resulting in a loss of market share[290] - Regulatory changes and increased compliance costs may affect the company's operations and profitability, particularly in the financial services sector[290] Other Comprehensive Income - Total accumulated other comprehensive income increased to $(366.233) million as of June 30, 2025, from $(410.015) million at the end of the previous quarter[165] - The net other comprehensive income during the period, net of tax, was $43.782 million for the three months ended June 30, 2025[165] - The company experienced a net other comprehensive loss of $(27.050) million for the three months ended June 30, 2024, indicating a significant improvement in 2025[165]
Wintrust Financial Corporation(WTFCM) - 2025 Q2 - Quarterly Report