Financial Performance - Interest income for Q2 2025 reached $920,908,000, an increase of 8.4% 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] 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 fair value of assets measured at fair value on a recurring basis was $6,027.4 million as of June 30, 2025[138] - As of June 30, 2025, total financial assets amounted to $66,365,379, an increase from $62,308,630 as of December 31, 2024, representing a growth of approximately 6.5%[149] - The Company’s derivative liabilities amounted to $161.4 million as of June 30, 2025[138] 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 total derivatives was $221.1 million, compared to $200.0 million as of December 31, 2024, indicating 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] - Interest rate derivatives designated as cash flow hedges amounted to $57.2 million as of June 30, 2025, a significant increase from $7.3 million at December 31, 2024[97] - The total notional amount of cash flow hedges was $7.95 billion, with a fair value of $45.9 million as of June 30, 2025[100] Credit Losses and Provisions - The provision for credit losses for the first half of 2025 was $46,197,000, a decrease from $61,734,000 in the first half of 2024, indicating a reduction of 25.2%[91] - The company anticipates potential increases in its allowance for credit losses due to defaults and losses on its loan portfolio[290] 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 six months ended June 30, 2025, was approximately $467,000, significantly higher than $50,000 in the same period of 2024[162] - The company declared a quarterly cash dividend of $0.50 per share, amounting to an annualized dividend of $2.00, paid on February 20, 2025, and again on May 22, 2025[167] Market and Economic Conditions - Economic conditions, including housing prices and job market fluctuations, could adversely affect the company's liquidity and loan portfolio performance[289] - 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] - Changes in interest rates could materially affect the company's net interest income and profitability[290] Regulatory and Risk Factors - The company is subject to regulatory changes that may affect its operations and financial performance[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] Comprehensive Income and Other Financial Metrics - The total accumulated other comprehensive loss as of June 30, 2025, was $(366.233) million, a decrease from $(410.015) million at the beginning of the period[164] - The net other comprehensive income during the period ended June 30, 2025, was $43.782 million, compared to a net loss of $(27.050) million for the same period in 2024[164] - The company’s total comprehensive income for the six months ended June 30, 2025, was $384.566 million, compared to $339.682 million for the same period in 2024[166]
Wintrust Financial Corp Series F Pfd(WTFCN) - 2025 Q2 - Quarterly Report