Wintrust(WTFC) - 2025 Q3 - Quarterly Results

Executive Summary & Highlights This section provides a high-level overview of Wintrust Financial Corporation's record financial performance for the first nine months and third quarter of 2025, highlighting key growth drivers and management commentary Financial Performance Overview (9M & Q3 2025) Wintrust Financial Corporation reported record net income for both the first nine months and the third quarter of 2025, driven by strong balance sheet growth and prudent net interest margin management | Metric | 9 Months Ended Sep 30, 2025 | 9 Months Ended Sep 30, 2024 | Change (YoY) | | :-------------------------------- | :--------------------------- | :--------------------------- | :----------- | | Net Income | $600.8 million | $509.7 million | +17.9% | | Diluted EPS | $8.25 | $7.67 | +7.6% | | Pre-tax, Pre-provision Income (non-GAAP) | $884.1 million | $778.1 million | +13.6% | | Metric | Q3 2025 | Q2 2025 | Change (QoQ) | | :-------------------------------- | :------- | :------- | :----------- | | Net Income | $216.3 million | $195.5 million | +10.6% | | Diluted EPS | $2.78 | $2.78 | 0% | | Pre-tax, Pre-provision Income (non-GAAP) | $317.8 million | $289.3 million | +9.8% | - CEO Timothy S. Crane highlighted continued momentum with record net income, net interest income, strong balance sheet growth, and prudent net interest margin management[4] Key Q3 2025 Highlights The third quarter of 2025 saw significant growth in loans, deposits, and total assets, alongside an increase in net interest income | Metric | Q3 2025 vs Q2 2025 Change | | :-------------------- | :------------------------ | | Total Loans | +$1.0 billion (8% annualized) | | Total Deposits | +$894.6 million (6% annualized) | | Total Assets | +$646.3 million (4% annualized) | | Net Interest Income | +$20.3 million (to $567.0 million) | | Net Interest Margin (FTE, non-GAAP) | 3.50% (within guidance) | | Net Gains on Investment Securities | $3.0 million (vs $650,000 in Q2 2025) | - Earnings per diluted common share of $2.78 in Q3 2025 were impacted by one-time recognition of prior issuance costs related to Preferred Stock Series D and E ($14.0 million, or $0.21 per diluted common share) and excess dividend for Preferred Stock Series F ($4.9 million, or $0.07 per diluted common share)[5] Management Commentary Management expressed satisfaction with diversified loan and strong deposit growth, maintaining conservative credit standards, and improving credit quality metrics - Strong loan growth of $1.0 billion (8% annualized) was diversified across all major loan portfolios, with pipelines remaining strong and mid-to-high single-digit growth expected for the remainder of the year[6] - Deposit growth of $894.6 million (6% annualized) funded loan growth, resulting in a loans-to-deposits ratio of 91.8% at quarter-end[6] - Disciplined credit management led to consistent positive outcomes, with appropriate reserves and low levels of net charge-offs and non-performing loans, and a core loan allowance for credit losses of 1.34%[6] Preferred Stock Impact The Company completed the issuance of Series F Preferred Stock in May 2025, anticipating the redemption of Series D and E Preferred Stock, which occurred in July 2025 - On May 22, 2025, Wintrust issued $425 million of Series F Preferred Stock[13] - The issuance was in contemplation of redeeming $412.5 million of Series D and Series E Preferred Stock, which were expected to reprice at higher rates[13] - Series D and Series E Preferred Stock were redeemed on July 15, 2025[13] Summary of Financial Results This section provides a detailed overview of Wintrust's financial performance, including balance sheet, net interest income, asset quality, non-interest income, non-interest expense, and income taxes Balance Sheet Overview Wintrust's balance sheet showed growth in total assets, loans, and deposits in Q3 2025, with a stable loans-to-deposits ratio | Metric | Q3 2025 | Q2 2025 | Change (QoQ) | | :-------------------- | :------- | :------- | :----------- | | Total Assets | $69.6 billion | $69.0 billion | +$646.3 million | | Total Loans | $52.1 billion | $51.0 billion | +$1.0 billion | | Total Liabilities | $62.6 billion | $61.7 billion | +$826.3 million | | Total Deposits | $56.7 billion | $55.8 billion | +$894.6 million | | Loans-to-Deposits Ratio | 91.8% | N/A | Stable | - The increase in loans was driven by growth across all major loan portfolios[16] - Strong organic deposit growth was driven by diverse deposit product offerings, with non-interest bearing deposit balances remaining stable[17] Net Interest Income & Margin Net interest income increased in Q3 2025 due to earning asset growth, while net interest margin saw a slight decline primarily from decreased loan yields | Metric | Q3 2025 | Q2 2025 | Change (QoQ) | | :-------------------- | :------- | :------- | :----------- | | Net Interest Income | $567.0 million | $546.7 million | +$20.3 million | | Net Interest Margin (GAAP) | 3.48% | 3.52% | -4 bps | | Net Interest Margin (FTE, non-GAAP) | 3.50% | 3.54% | -4 bps | | Yield on Earning Assets | -3 bps | N/A | N/A | | Loan Yields | -4 bps | N/A | N/A | | Funding Cost on Interest-Bearing Deposits | +1 bp | N/A | N/A | - The increase in net interest income was primarily due to average earning asset growth of $2.4 billion, or 15% annualized[19] Asset Quality Asset quality remained stable in Q3 2025, with a slight decrease in the allowance for credit losses and an improved macroeconomic forecast | Metric | Sep 30, 2025 | Jun 30, 2025 | Change (QoQ) | | :-------------------------------- | :------------ | :------------ | :----------- | | Allowance for Credit Losses | $454.6 million | $457.5 million | -$2.9 million | | Provision for Credit Losses (Q3) | $21.8 million | $22.2 million | -$0.4 million | | Net Charge-offs (Q3) | $24.6 million | $13.3 million | +$11.3 million | | Net Charge-offs (% of avg. total loans, annualized) | 19 bps | 11 bps | +8 bps | | Non-Performing Assets | $187.5 million | $212.5 million | -$25.0 million | | Non-Performing Assets (% of total assets) | 0.27% | 0.31% | -0.04% | | Non-Performing Loans | $162.6 million | $188.8 million | -$26.2 million | | Non-Performing Loans (% of total loans) | 0.31% | 0.37% | -0.06% | - The provision for credit losses reflects stable credit quality and an improved macroeconomic forecast, with qualitative additions made due to future economic uncertainty[22] - Management believes the allowance for credit losses is appropriate to account for expected credit losses[23] Non-Interest Income Total non-interest income increased in Q3 2025, primarily driven by growth in wealth management revenue, mortgage banking revenue, and net gains on investment securities | Metric | Q3 2025 | Q2 2025 | Change (QoQ) | | :-------------------------------- | :------- | :------- | :----------- | | Total Non-Interest Income | $130.8 million | $124.1 million | +$6.7 million | | Wealth Management Revenue | +$367,000 | N/A | N/A | | Mortgage Banking Revenue | $24.5 million | $23.2 million | +$1.3 million | | Net Gains on Investment Securities | $3.0 million | $650,000 | +$2.35 million | - Wealth management revenue increase was driven by higher asset valuations and increased brokerage transactional business[28] - Mortgage banking revenue increase was primarily attributed to higher production revenue[29] Non-Interest Expense Non-interest expense slightly decreased in Q3 2025, with notable reductions in professional fees and acquisition-related costs | Metric | Q3 2025 | Q2 2025 | Change (QoQ) | | :-------------------- | :------- | :------- | :----------- | | Total Non-Interest Expense | $380.0 million | $381.5 million | -$1.5 million | | Non-Interest Expense (% of avg. assets) | 2.21% | N/A | Decreased | | Professional Fees Expense | $7.5 million | $9.2 million | -$1.8 million | | Macatawa Bank Acquisition-Related Costs | $471,000 | $2.9 million | -$2.4 million | - The decrease in professional fees primarily relates to lower consulting services[33] Income Taxes Income tax expense and the effective tax rate increased slightly in Q3 2025 compared to the previous quarter | Metric | Q3 2025 | Q2 2025 | Change (QoQ) | | :-------------------- | :------- | :------- | :----------- | | Income Tax Expense | $79.8 million | $71.6 million | +$8.2 million | | Effective Tax Rate | 27.0% | 26.8% | +0.2% | Business Segment Review This section reviews the performance of Wintrust's key business segments: Community Banking, Specialty Finance, and Wealth Management, highlighting their contributions to overall growth Community Banking The Community Banking segment expanded its loan portfolios and saw increases in mortgage banking revenue and service charges on deposit accounts, with strong commercial and commercial real estate loan pipelines - Community banking increased its commercial, commercial real estate, and residential real estate loan portfolios in Q3 2025[37] | Metric | Q3 2025 | Q2 2025 | Change (QoQ) | | :-------------------------------- | :------- | :------- | :----------- | | Mortgage Banking Revenue | $24.5 million | $23.2 million | +$1.3 million | | Service Charges on Deposit Accounts | $19.8 million | $19.5 million | +$0.3 million | - Gross commercial and commercial real estate loan pipelines remained solid, indicating expected continued loan growth in Q4 2025[38] Specialty Finance The Specialty Finance segment reported strong originations in insurance premium financing and increased portfolio balances in leasing divisions, with stable revenues from outsourced administrative services - Originations within the insurance premium financing receivables portfolios totaled $5.5 billion during Q3 2025, with average balances increasing by $945.4 million QoQ[39] | Leasing Division Portfolio Balances | Sep 30, 2025 | Jun 30, 2025 | | :-------------------------------- | :------------ | :------------ | | Capital Leases | $2.8 billion | $2.8 billion | | Loans | $1.2 billion | $1.2 billion | | Equipment on Operating Leases | $301.0 million | $289.8 million | - Revenues from outsourced administrative services business were $1.2 million in Q3 2025, remaining relatively stable QoQ[39] Wealth Management The Wealth Management segment experienced an increase in revenue in Q3 2025, with significant assets under administration | Metric | Q3 2025 | Q2 2025 | Change (QoQ) | | :-------------------- | :------- | :------- | :----------- | | Wealth Management Revenue | $37.2 million | N/A | Increased | | Assets Under Administration (Sep 30, 2025) | $55.1 billion | N/A | N/A | - Assets under administration included $8.8 billion of assets owned by the Company and its subsidiary banks[40] Key Operating Measures & Financial Highlights (Tables) This section provides comprehensive tables detailing Wintrust's key operating measures, financial condition data, statements of income data, and financial ratios across multiple periods Key Operating Measures This section presents a table summarizing Wintrust's key operating measures and growth rates for Q3 2025 compared to Q2 2025 and Q3 2024, covering net income, EPS, revenue, margins, and balance sheet items | Metric | Sep 30, 2025 | Jun 30, 2025 | Sep 30, 2024 | % Change from Q2 2025 | % Change from Q3 2024 | | :----------------------------------- | :----------- | :----------- | :----------- | :-------------------- | :-------------------- | | Net income (in thousands) | $216,254 | $195,527 | $170,001 | 11 % | 27 % | | Net income per common share – Diluted | 2.78 | 2.78 | 2.47 | — | 13 | | Net revenue (in thousands) | 697,837 | 670,783 | 615,730 | 4 | 13 | | Net interest income (in thousands) | 567,010 | 546,694 | 502,583 | 4 | 13 | | Net interest margin | 3.48 % | 3.52 % | 3.49 % | (4) bps | (1) bps | | Total assets (in thousands) | $69,629,638 | $68,983,318 | $63,788,424 | 4 % | 9 % | | Total loans (in thousands) | 52,063,482 | 51,041,679 | 47,067,447 | 8 | 11 | | Total deposits (in thousands) | 56,711,381 | 55,816,811 | 51,404,966 | 6 | 10 | | Total shareholders' equity (in thousands) | 7,045,757 | 7,225,696 | 6,399,714 | (10) | 10 | Selected Financial Highlights This table provides a detailed breakdown of selected financial condition data, statements of income data, and financial ratios for multiple quarters and year-to-date periods, offering a comprehensive view of the company's financial trends | Metric | Sep 30, 2025 | Jun 30, 2025 | Mar 31, 2025 | Dec 31, 2024 | Sep 30, 2024 | | :----------------------------------- | :----------- | :----------- | :----------- | :----------- | :----------- | | Selected Financial Condition Data (at end of period, in thousands): | | | | | | | Total assets | $69,629,638 | $68,983,318 | $65,870,066 | $64,879,668 | $63,788,424 | | Total loans | 52,063,482 | 51,041,679 | 48,708,390 | 48,055,037 | 47,067,447 | | Total deposits | 56,711,381 | 55,816,811 | 53,570,038 | 52,512,349 | 51,404,966 | | Total shareholders' equity | 7,045,757 | 7,225,696 | 6,600,537 | 6,344,297 | 6,399,714 | | Selected Statements of Income Data (in thousands): | | | | | | | Net interest income | $567,010 | $546,694 | $526,474 | $525,148 | $502,583 | | Net income | 216,254 | 195,527 | 189,039 | 185,362 | 170,001 | | Net income per common share – Diluted | 2.78 | 2.78 | 2.69 | 2.63 | 2.47 | | Selected Financial Ratios and Other Data: | | | | | | | Net interest margin | 3.48 % | 3.52 % | 3.54 % | 3.49 % | 3.49 % | | Return on average assets | 1.26 | 1.19 | 1.20 | 1.16 | 1.11 | | Return on average common equity | 11.58 | 12.07 | 12.21 | 11.82 | 11.63 | | Period-end loans to deposits ratio | 91.8 | 91.4 | 90.9 | 91.5 | 91.6 | | Common equity to assets ratio | 9.5 % | 9.3 % | 9.4 % | 9.1 % | 9.4 % | | Tier 1 leverage ratio | 9.5 | 10.2 | 9.6 | 9.4 | 9.6 | | Allowance for credit losses (in thousands) | $454,586 | $457,461 | $448,387 | $437,060 | $436,193 | Consolidated Financial Statements This section presents Wintrust's complete consolidated statements of condition and income, offering a comprehensive view of the company's financial position and operational results Consolidated Statements of Condition The Consolidated Statements of Condition provide a detailed breakdown of Wintrust's assets, liabilities, and shareholders' equity at the end of various periods, highlighting the composition and changes in the balance sheet | (In thousands) | Sep 30, 2025 | Jun 30, 2025 | Mar 31, 2025 | Dec 31, 2024 | Sep 30, 2024 | | :------------------------------------------ | :----------- | :----------- | :----------- | :----------- | :----------- | | Assets | | | | | | | Cash and due from banks | $565,406 | $695,501 | $616,216 | $452,017 | $725,465 | | Net loans | 51,676,860 | 50,650,025 | 48,330,183 | 47,691,020 | 46,707,168 | | Total assets | $69,629,638 | $68,983,318 | $65,870,066 | $64,879,668 | $63,788,424 | | Liabilities | | | | | | | Total deposits | $56,711,381 | $55,816,811 | $53,570,038 | $52,512,349 | $51,404,966 | | Total liabilities | $62,583,881 | $61,757,622 | $59,269,529 | $58,535,371 | $57,388,710 | | Shareholders' Equity | | | | | | | Total shareholders' equity | $7,045,757 | $7,225,696 | $6,600,537 | $6,344,297 | $6,399,714 | Consolidated Statements of Income The Consolidated Statements of Income present Wintrust's revenues, expenses, and net income for quarterly and year-to-date periods, detailing interest income and expense, non-interest income and expense, and earnings per share | (Dollars in thousands, except per share data) | Q3 2025 | Q2 2025 | Q1 2025 | Q4 2024 | Q3 2024 | 9M 2025 | 9M 2024 | | :------------------------------------------ | :------- | :------- | :------- | :------- | :------- | :------- | :------- | | Total interest income | $963,834 | $920,908 | $886,965 | $913,501 | $908,604 | $2,771,707 | $2,564,096 | | Total interest expense | 396,824 | 374,214 | 360,491 | 388,353 | 406,021 | 1,131,529 | 1,126,709 | | Net interest income | 567,010 | 546,694 | 526,474 | 525,148 | 502,583 | 1,640,178 | 1,437,387 | | Provision for credit losses | 21,768 | 22,234 | 23,963 | 16,979 | 22,334 | 67,965 | 84,068 | | Total non-interest income | 130,827 | 124,089 | 116,634 | 113,451 | 113,147 | 371,550 | 374,874 | | Total non-interest expense | 380,028 | 381,461 | 366,090 | 368,539 | 360,687 | 1,127,579 | 1,034,185 | | Net income | $216,254 | $195,527 | $189,039 | $185,362 | $170,001 | $600,820 | $509,683 | | Net income per common share - Diluted | $2.78 | $2.78 | $2.69 | $2.63 | $2.47 | $8.25 | $7.67 | Detailed Financial Tables This section provides in-depth financial data through detailed tables, covering loan and deposit portfolio analysis, net interest income and margin, interest rate sensitivity, allowance for credit losses, non-performing assets, and detailed non-interest income and expense Loan Portfolio Analysis This section details the composition and growth rates of Wintrust's loan portfolio, distinguishing between core and niche loans, and providing annualized growth figures | Loan Category | Sep 30, 2025 (in thousands) | Jun 30, 2025 (in thousands) | Sep 30, 2024 (in thousands) | % Growth from Q2 2025 (Annualized) | % Growth from Q3 2024 | | :----------------------------------- | :----------- | :----------- | :----------- | :--------------------------------- | :-------------------- | | Total mortgage loans held-for-sale | $333,883 | $299,606 | $461,067 | 45 % | (28)% | | Total core loans | $30,610,433 | $29,928,663 | $28,363,712 | 9 % | 8 % | | Total niche loans | $21,453,049 | $21,113,016 | $18,703,735 | 6 % | 15 % | | Total loans, net of unearned income | $52,063,482 | $51,041,679 | $47,067,447 | 8 % | 11 % | - Core loans include commercial, commercial real estate, home equity, and residential real estate loans. Niche loans include franchise, mortgage warehouse lines, community advantage, insurance agency lending, and premium finance receivables[50] Deposit Portfolio Analysis This section provides a breakdown of Wintrust's deposit portfolio by type, including non-interest-bearing, NOW, money market, savings, and time certificates of deposit, along with their growth rates and mix | Deposit Category | Sep 30, 2025 (in thousands) | Jun 30, 2025 (in thousands) | Sep 30, 2024 (in thousands) | % Growth From Q2 2025 (Annualized) | % Growth From Q3 2024 | | :----------------------------------- | :----------- | :----------- | :----------- | :--------------------------------- | :-------------------- | | Non-interest-bearing | $10,952,146 | $10,877,166 | $10,739,132 | 3 % | 2 % | | NOW and interest bearing demand deposits | 6,710,919 | 6,795,725 | 5,466,932 | (5) | 23 | | Money market | 20,270,382 | 19,556,041 | 17,713,726 | 14 | 14 | | Savings | 6,758,743 | 6,659,419 | 6,183,249 | 6 | 9 | | Time certificates of deposit | 10,418,456 | 10,332,696 | 9,998,573 | 3 | 4 | | Total deposits | $56,711,381 | $55,816,811 | $51,404,966 | 6 % | 10 % | | Deposit Category Mix (Sep 30, 2025) | Percentage | | :----------------------------------- | :--------------------------------- | | Non-interest-bearing | 19 % | | NOW and interest bearing demand deposits | 12 % | | Wealth management deposits | 3 % | | Money market | 36 % | | Savings | 12 % | | Time certificates of deposit | 18 % | Time Certificates of Deposit Maturity/Re-pricing Analysis (As of Sep 30, 2025): | Maturity Period | Total Time Certificates of Deposit (in thousands) | Weighted-Average Rate | | :-------------- | :--------------------------------- | :-------------------- | | 1-3 months | $4,450,481 | 3.83 % | | 4-6 months | $3,165,121 | 3.72 % | | 7-9 months | $1,489,181 | 3.64 % | | 10-12 months | $973,156 | 3.79 % | | Total | $10,418,456 | 3.74 % | Net Interest Income and Margin Analysis This section provides detailed tables on quarterly and year-to-date average balances, net interest income, and net interest margin, including yields on earning assets and rates paid on interest-bearing liabilities Quarterly Net Interest Income (in thousands): | Metric | Sep 30, 2025 | Jun 30, 2025 | Mar 31, 2025 | Dec 31, 2024 | Sep 30, 2024 | | :----------------------------------- | :----------- | :----------- | :----------- | :----------- | :----------- | | Total interest income (in thousands) | $966,663 | $923,788 | $889,864 | $916,571 | $911,748 | | Total interest expense (in thousands) | $396,824 | $374,214 | $360,491 | $388,353 | $406,021 | | Net interest income (GAAP, in thousands) | $567,010 | $546,694 | $526,474 | $525,148 | $502,583 | | Net interest income, fully taxable-equivalent (non-GAAP, in thousands) | $569,839 | $549,574 | $529,373 | $528,218 | $505,727 | Quarterly Net Interest Margin: | Metric | Sep 30, 2025 | Jun 30, 2025 | Mar 31, 2025 | Dec 31, 2024 | Sep 30, 2024 | | :----------------------------------- | :----------- | :----------- | :----------- | :----------- | :----------- | | Yield earned on total earning assets | 5.93 % | 5.96 % | 5.98 % | 6.09 % | 6.33 % | | Rate paid on total interest-bearing liabilities | 3.21 % | 3.20 % | 3.22 % | 3.44 % | 3.75 % | | Net interest margin (GAAP) | 3.48 % | 3.52 % | 3.54 % | 3.49 % | 3.49 % | | Net interest margin, fully taxable-equivalent (non-GAAP) | 3.50 % | 3.54 % | 3.56 % | 3.51 % | 3.51 % | Year-to-Date Net Interest Income and Margin (9 Months Ended): | Metric | Sep 30, 2025 | Sep 30, 2024 | | :----------------------------------- | :----------- | :----------- | | Net interest income (GAAP, in thousands) | $1,640,178 | $1,437,387 | | Net interest income/margin (GAAP) | 3.51 % | 3.52 % | | Net interest income/margin, fully taxable-equivalent (non-GAAP) | 3.53 % | 3.54 % | Interest Rate Sensitivity Wintrust manages its exposure to interest rate fluctuations through various strategies, including derivative instruments and originating longer-term fixed-rate loans Static Shock Scenario (Percentage Change in Net Interest Income): | Period | +200 Basis Points | +100 Basis Points | -100 Basis Points | -200 Basis Points | | :----- | :---------------- | :---------------- | :---------------- | :---------------- | | Sep 30, 2025 | (2.3)% | (0.8)% | 0.0 % | (0.4)% | | Jun 30, 2025 | (1.5) | (0.4) | (0.2) | (1.2) | | Sep 30, 2024 | 1.2 | 1.1 | 0.4 | (0.9) | Ramp Scenario (Percentage Change in Net Interest Income): | Period | +200 Basis Points | +100 Basis Points | -100 Basis Points | -200 Basis Points | | :----- | :---------------- | :---------------- | :---------------- | :---------------- | | Sep 30, 2025 | (0.2)% | (0.1)% | 0.1 % | (0.1)% | | Jun 30, 2025 | 0.0 | 0.0 | (0.1) | (0.4) | | Sep 30, 2024 | 1.6 | 1.2 | 0.7 | 0.5 | - Management has executed derivative instruments (collars, floors, receive fixed swaps) to hedge variable rate loan exposures and originated a higher percentage of longer-term fixed-rate loans[70] Variable Rate Loan Pricing by Index (Sep 30, 2025): | Index | Amount (in thousands) | | :-------------------- | :----------- | | SOFR tenors | $20,295,819 | | 12-month CMT | $7,284,381 | | Prime | $3,083,193 | | Fed Funds | $768,000 | | Other U.S. Treasury tenors | $191,629 | | Other | $136,529 | | Total variable rate | $31,759,551 | Allowance for Credit Losses This section provides a detailed breakdown of the allowance for credit losses, including provision, charge-offs, and recoveries by loan category, and the allowance by loan portfolio Allowance for Credit Losses (in thousands): | Metric | Sep 30, 2025 | Jun 30, 2025 | Mar 31, 2025 | Dec 31, 2024 | Sep 30, 2024 | | :----------------------------------- | :----------- | :----------- | :----------- | :----------- | :----------- | | Allowance for credit losses at beginning of period | $457,461 | $448,387 | $437,060 | $436,193 | $437,560 | | Provision for credit losses - Other | 21,768 | 22,234 | 23,963 | 16,979 | 6,787 | | Total charge-offs | 28,846 | 18,495 | 17,449 | 19,731 | 31,018 | | Total recoveries | 4,291 | 5,155 | 4,809 | 3,806 | 4,283 | | Net charge-offs | (24,555) | (13,340) | (12,640) | (15,925) | (26,735) | | Allowance for credit losses at period end | $454,586 | $457,461 | $448,387 | $437,060 | $436,193 | | Annualized net charge-offs (% of avg. total loans) | 0.19 % | 0.11 % | 0.11 % | 0.13 % | 0.23 % | | Allowance for loan losses as a percentage of loans at period end | 0.74 % | 0.77 % | 0.78 % | 0.76 % | 0.77 % | Allowance by Loan Portfolio (As of Sep 30, 2025): | Loan Portfolio | Recorded Investment (in thousands) | Calculated Allowance (in thousands) | % of its category's balance | | :----------------------------------- | :------------------ | :------------------- | :-------------------------- | | Commercial | $16,544,342 | $189,476 | 1.15 % | | Commercial real estate | $13,619,207 | $230,477 | 1.69 % | | Home equity | $484,202 | $9,229 | 1.91 % | | Residential real estate | $4,143,870 | $12,013 | 0.29 % | | Premium finance receivables | $17,124,845 | $11,949 | 0.07 % | | Consumer and other | $147,016 | $1,047 | 0.71 % | | Total loans, net of unearned income | $52,063,482 | $454,191 | 0.87 % | | Total core loans | $30,610,433 | $408,780 | 1.34 % | | Total niche loans | $21,453,049 | $45,411 | 0.21 % | Non-Performing Assets This section provides detailed tables on loan portfolio aging, non-performing assets, and a rollforward of non-performing loans, illustrating trends in credit quality Total Loans, Net of Unearned Income (Aging as of Sep 30, 2025): | Status | Amount (in thousands) | | :----------------------------------- | :----------- | | Nonaccrual | $149,566 | | 90+ days and still accruing | $13,066 | | 60-89 days past due | $92,976 | | 30-59 days past due | $194,378 | | Current | $51,488,672 | | Total loans, net of unearned income | $52,063,482 | Non-Performing Assets (in thousands): | Metric | Sep 30, 2025 | Jun 30, 2025 | Mar 31, 2025 | Dec 31, 2024 | Sep 30, 2024 | | :----------------------------------- | :----------- | :----------- | :----------- | :----------- | :----------- | | Total non-performing loans | $162,632 | $188,838 | $172,390 | $170,823 | $179,687 | | Other real estate owned | 24,832 | 23,615 | 22,625 | 23,116 | 13,682 | | Total non-performing assets | $187,464 | $212,453 | $195,015 | $193,939 | $193,369 | | Total non-performing loans (% of total loans) | 0.31 % | 0.37 % | 0.35 % | 0.36 % | 0.38 % | | Total non-performing assets (% of total assets) | 0.27 % | 0.31 % | 0.30 % | 0.30 % | 0.30 % | Non-performing Loans Rollforward (excluding early buy-out loans, in thousands): | Metric | Q3 2025 | Q2 2025 | Q1 2025 | Q4 2024 | Q3 2024 | | :----------------------------------- | :------- | :------- | :------- | :------- | :------- | | Balance at beginning of period | $188,838 | $172,390 | $170,823 | $179,687 | $174,251 | | Additions from becoming non-performing | 34,805 | 48,651 | 27,721 | 30,931 | 42,335 | | Return to performing status | (3,399) | (6,896) | (1,207) | (1,108) | (362) | | Payments received | (28,052) | (5,602) | (15,965) | (12,219) | (10,894) | | Charge-offs, net | (21,526) | (11,734) | (8,600) | (5,612) | (21,211) | | Balance at end of period | $162,632 | $188,838 | $172,390 | $170,823 | $179,687 | Non-Interest Income Details This table provides a detailed breakdown of non-interest income components for quarterly and year-to-date periods, showing changes and percentage shifts | (Dollars in thousands) | Q3 2025 | Q2 2025 | Q3 2024 | $ Change Q3 2025 vs Q2 2025 | % Change Q3 2025 vs Q2 2025 | $ Change Q3 2025 vs Q3 2024 | % Change Q3 2025 vs Q3 2024 | | :----------------------------------- | :------- | :------- | :------- | :-------------------------- | :-------------------------- | :-------------------------- | :-------------------------- | | Total wealth management | $37,188 | $36,821 | $37,224 | $367 | 1 | $(36) | 0 | | Mortgage banking | 24,451 | 23,170 | 15,974 | 1,281 | 6 | 8,477 | 53 | | Service charges on deposit accounts | 19,825 | 19,502 | 16,430 | 323 | 2 | 3,395 | 21 | | Gains (losses) on investment securities, net | 2,972 | 650 | 3,189 | 2,322 | NM | (217) | (7) | | Fees from covered call options | 5,619 | 5,624 | 988 | (5) | 0 | 4,631 | NM | | Operating lease income, net | 15,466 | 15,166 | 15,335 | 300 | 2 | 131 | 1 | | Total Other | 25,134 | 23,005 | 24,137 | 2,129 | 9 | 997 | 4 | | Total Non-Interest Income | $130,827 | $124,089 | $113,147 | $6,738 | 5 % | $17,680 | 16 % | Mortgage Banking Details This section provides a comprehensive overview of mortgage banking activities, including originations, production margin, loans serviced for others, and MSR fair value asset activity for quarterly and year-to-date periods Mortgage Banking (Three Months Ended, Dollars in thousands, except percentages): | Metric | Sep 30, 2025 | Jun 30, 2025 | Mar 31, 2025 | Dec 31, 2024 | Sep 30, 2024 | | :----------------------------------- | :----------- | :----------- | :----------- | :----------- | :----------- | | Total originations for sale | $643,393 | $681,546 | $460,453 | $660,338 | $766,777 | | Total originations | $994,405 | $1,104,472 | $677,630 | $1,015,457 | $985,761 | | Production revenue | $15,388 | $13,380 | $9,941 | $6,993 | $13,113 | | Production margin | 1.95 % | 2.07 % | 1.80 % | 1.42 % | 1.61 % | | Loans serviced for others | $12,524,131 | $12,470,924 | $12,402,352 | $12,400,913 | $12,253,361 | | Mortgage Servicing Rights ("MSR"), at fair value | $190,938 | $193,061 | $196,307 | $203,788 | $186,308 | | Total mortgage banking revenue | $24,451 | $23,170 | $20,529 | $20,452 | $15,974 | Mortgage Banking (Nine Months Ended, Dollars in thousands, except percentages): | Metric | Sep 30, 2025 | Sep 30, 2024 | | :----------------------------------- | :----------- | :----------- | | Total originations for sale | $1,785,392 | $1,964,576 | | Total originations | $2,776,507 | $2,628,137 | | Production revenue | $38,709 | $41,538 | | Production margin | 1.95 % | 1.96 % | | Loans serviced for others | $12,524,131 | $12,253,361 | | MSRs, at fair value | $190,938 | $186,308 | | Total mortgage banking revenue | $68,150 | $72,761 | Non-Interest Expense Details This table provides a detailed breakdown of non-interest expense components for quarterly and year-to-date periods, showing changes and percentage shifts | (Dollars in thousands) | Q3 2025 | Q2 2025 | Q3 2024 | $ Change Q3 2025 vs Q2 2025 | % Change Q3 2025 vs Q2 2025 | $ Change Q3 2025 vs Q3 2024 | % Change Q3 2025 vs Q3 2024 | | :----------------------------------- | :------- | :------- | :------- | :-------------------------- | :-------------------------- | :-------------------------- | :-------------------------- | | Total salaries and employee benefits | $219,668 | $219,541 | $211,261 | $127 | 0 | $8,407 | 4 | | Software and equipment | 35,027 | 36,522 | 31,574 | (1,495) | (4) | 3,453 | 11 | | Occupancy, net | 20,809 | 20,228 | 19,945 | 581 | 3 | 864 | 4 | | Data processing | 11,329 | 12,110 | 9,984 | (781) | (6) | 1,345 | 13 | | Advertising and marketing | 19,027 | 18,761 | 18,239 | 266 | 1 | 788 | 4 | | Professional fees | 7,465 | 9,243 | 9,783 | (1,778) | (19) | (2,318) | (24) | | Amortization of other acquisition-related intangible assets | 5,196 | 5,580 | 4,042 | (384) | (7) | 1,154 | 29 | | FDIC insurance | 11,418 | 10,971 | 10,512 | 447 | 4 | 906 | 9 | | Total other | 39,418 | 37,243 | 35,767 | 2,175 | 6 | 3,651 | 10 | | Total Non-Interest Expense | $380,028 | $381,461 | $360,687 | $(1,433) | 0 % | $19,341 | 5 % | Supplemental Non-GAAP Financial Measures/Ratios This section provides reconciliations of GAAP to non-GAAP financial measures and ratios, offering additional insights into Wintrust's operational performance, equity structure, and core profitability Non-GAAP Net Interest Margin and Efficiency Ratio Reconciliation This section provides reconciliations of GAAP to non-GAAP measures for net interest income, net interest margin, and the efficiency ratio, offering a clearer view of operational performance by adjusting for tax-exempt income and securities gains/losses - Management uses taxable-equivalent net interest income and margin to ensure comparability of interest income from both taxable and tax-exempt sources[95] - The efficiency ratio (non-GAAP) excludes securities gains or losses to better match revenue from daily operations to operational expenses[95] Reconciliation of Non-GAAP Net Interest Margin and Efficiency Ratio (in thousands): | Metric | Q3 2025 | Q2 2025 | Q1 2025 | Q4 2024 | Q3 2024 | 9M 2025 | 9M 2024 | | :----------------------------------- | :------- | :------- | :------- | :------- | :------- | :------- | :------- | | Net Interest Income (GAAP) | $567,010 | $546,694 | $526,474 | $525,148 | $502,583 | $1,640,178 | $1,437,387 | | Net Interest Income (non-GAAP) | $569,839 | $549,574 | $529,373 | $528,218 | $505,727 | $1,648,786 | $1,446,207 | | Net interest margin (GAAP) | 3.48 % | 3.52 % | 3.54 % | 3.49 % | 3.49 % | 3.51 % | 3.52 % | | Net interest margin, fully taxable equivalent (non-GAAP) | 3.50 | 3.54 | 3.56 | 3.51 | 3.51 | 3.53 | 3.54 | | Efficiency ratio (GAAP) | 54.69 % | 56.92 % | 57.21 % | 57.46 % | 58.88 % | 56.24 % | 57.07 % | | Efficiency ratio (non-GAAP) | 54.47 | 56.68 | 56.95 | 57.18 | 58.58 | 56.00 | 56.80 | Non-GAAP Tangible Common Equity Ratios Reconciliation This section reconciles GAAP to non-GAAP measures for tangible common equity ratio, tangible book value per common share, and return on average tangible common equity, providing insights into the company's equity structure and profitability excluding intangible assets - Management considers the tangible common equity ratio and tangible book value per common share as useful measurements of the Company's equity, and return on average tangible common equity as a measurement of profitability[95] Reconciliation of Non-GAAP Tangible Common Equity Ratio (in thousands): | Metric | Sep 30, 2025 | Jun 30, 2025 | Mar 31, 2025 | Dec 31, 2024 | Sep 30, 2024 | | :----------------------------------- | :----------- | :----------- | :----------- | :----------- | :----------- | | Total shareholders' equity (GAAP) | $7,045,757 | $7,225,696 | $6,600,537 | $6,344,297 | $6,399,714 | | Total tangible common shareholders' equity (non-GAAP) | $5,717,821 | $5,479,557 | $5,275,033 | $5,013,165 | $5,062,568 | | Common equity to assets ratio (GAAP) | 9.5 % | 9.3 % | 9.4 % | 9.1 % | 9.4 % | | Tangible common equity ratio (non-GAAP) | 8.3 | 8.0 | 8.1 | 7.8 | 8.1 | Reconciliation of Non-GAAP Tangible Book Value per Common Share: | Metric | Sep 30, 2025 | Jun 30, 2025 | Mar 31, 2025 | Dec 31, 2024 | Sep 30, 2024 | | :----------------------------------- | :----------- | :----------- | :----------- | :----------- | :----------- | | Book value per common share | $98.87 | $95.43 | $92.47 | $89.21 | $90.06 | | Tangible book value per common share (non-GAAP) | 85.39 | 81.86 | 78.83 | 75.39 | 76.15 | Non-GAAP Net Income per Common Share Reconciliation This section reconciles GAAP net income per common share to non-GAAP measures, adjusting for non-recurring preferred stock offering impacts to provide a clearer view of core earnings - Management considers pre-tax income, excluding provision for credit losses, as a useful measurement of the Company's core net income[95] Reconciliation of Non-GAAP Net Income per Common Share (in thousands, except per share data): | Metric | Q3 2025 | Q2 2025 | Q1 2025 | Q4 2024 | Q3 2024 | 9M 2025 | 9M 2024 | | :----------------------------------- | :------- | :------- | :------- | :------- | :------- | :------- | :------- | | Net income | $216,254 | $195,527 | $189,039 | $185,362 | $170,001 | $600,820 | $509,683 | | Preferred stock dividends | 13,295 | 6,991 | 6,991 | 6,991 | 6,991 | 27,277 | 20,973 | | Preferred stock redemption | 14,046 | — | — | — | — | 14,046 | — | | Net income applicable to common shares | $188,913 | $188,536 | $182,048 | $178,371 | $163,010 | $559,497 | $488,710 | | Net income per common share - Diluted | $2.78 | $2.78 | $2.69 | $2.63 | $2.47 | $8.25 | $7.67 | | Total non-recurring preferred stock offering impact (non-GAAP) | $18,973 | $— | $— | $— | $— | $18,973 | $— | | Net income per common share - Diluted (non-GAAP) | $3.06 | $2.78 | $2.69 | $2.63 | $2.47 | $8.53 | $7.67 | Company Information & Forward-Looking Statements This section provides an overview of Wintrust's subsidiary operations and outlines important forward-looking statements and various risk factors that could influence future financial outcomes Wintrust Subsidiaries Wintrust Financial Corporation operates as a financial holding company with 16 community bank subsidiaries and various non-bank businesses across several market areas - Wintrust operates 16 community bank subsidiaries in the greater Chicago, southern Wisconsin, west Michigan, northwest Indiana, and southwest Florida market areas[100] - Non-bank businesses include: FIRST Insurance Funding and Wintrust Life Finance (commercial and life insurance loans)[102] - First Insurance Funding of Canada (commercial insurance loans)[102] - Tricom, Inc. (accounts receivable financing and outsourced administrative services)[102] - Wintrust Mortgage (residential mortgages origination and purchase)[102] - Wintrust Investments, LLC (private client and brokerage services)[102] - Great Lakes Advisors LLC (money management and advisory services)[102] - Wintrust Private Trust Company, N.A. (trust and investment services)[102] - Wintrust Asset Finance (direct leasing opportunities)[102] - CDEC (Qualified Intermediary services for tax-deferred like-kind exchanges)[102] Forward-Looking Statements & Risk Factors This section outlines the forward-looking nature of statements in the document and details various risk factors that could cause actual results to differ materially from projections, covering economic conditions, credit quality, market volatility, competition, regulatory changes, and operational risks - Forward-looking statements are based on management's expectations, estimates, and projections regarding future events and are subject to risks and uncertainties[101] - Economic conditions and events affecting the economy, housing prices, and the job market[103][104][107] - Extent of defaults and losses on the loan portfolio, requiring increases in allowance for credit losses[103][104][107] - Changes in the level and volatility of interest rates, capital markets, and other market indices[103][104][107] - Competitive pressures in the financial services business affecting pricing and market share[103][104][107] - Failure to identify and complete favorable acquisitions or unexpected losses from acquisitions[103][104][107] - Security breaches, failures of security systems or infrastructure, and cyberattacks[103][104][107] - Legislative or regulatory changes, including heightened capital requirements and increased FDIC insurance premiums[103][104][107] - Fluctuations in the stock market impacting wealth management and brokerage operations[103][104][107] Conference Call Information Details for the conference call regarding Q3 and year-to-date 2025 earnings results, including registration, webcast, and replay information - A conference call will be held on Tuesday, October 21, 2025, at 10:00 a.m. (CDT) to discuss Q3 and year-to-date 2025 earnings[106] - Registration for the call and access to the audio-only webcast and replay, along with an accompanying slide presentation, are available on the Wintrust website (www.wintrust.com) under Investor Relations[106]