WINTRUST FINL(US:WTFCP)2025-11-06 22:01Financial Performance - Interest income for the three months ended September 30, 2025, was $952,408,000, an increase from $898,295,000 for the same period in 2024, representing a growth of 6.0%[97] - Net interest income for the nine months ended September 30, 2025, reached $1,605,093,000, compared to $1,407,950,000 for the same period in 2024, reflecting an increase of 14.0%[98] - Non-interest income for the three months ended September 30, 2025, was $154,391,000, up from $133,341,000 in 2024, marking a growth of 15.8%[97] - Net income for the three months ended September 30, 2025, was $216,254,000, a rise from $170,001,000 in 2024, which is an increase of 27.2%[97] - Income before taxes for the nine months ended September 30, 2025, was $816,184,000, up from $694,008,000 in 2024, representing a growth of 17.6%[98] Assets and Liabilities - Total assets at period end for September 30, 2025, were $69,629,638,000, compared to $63,788,424,000 at the end of September 30, 2024, indicating an increase of 9.5%[97] - Total non-interest expense for the three months ended September 30, 2025, was $392,166,000, compared to $370,572,000 in 2024, reflecting an increase of 5.8%[97] - The Company had $1.6 million of derivatives in a net liability position subject to cross-default provisions as of September 30, 2025[127] - Non-maturity deposits increased to $46,292,925 from $43,092,318 at December 31, 2024, while total financial liabilities rose to $61,205,278 from $57,040,424[156] Derivative Financial Instruments - The company utilizes various derivative financial instruments to manage interest rate risk, including interest rate swaps and options, enhancing overall yield on securities[99] - The company recognizes derivative financial instruments at fair value in its consolidated financial statements, impacting income or shareholders' equity based on hedge accounting qualifications[102] - As of September 30, 2025, the fair value of the Company's derivative financial instruments totaled $208.957 million, compared to $200.027 million as of December 31, 2024, indicating an increase of approximately 0.9%[104] - The Company reported $65.3 million in derivatives designated as hedging instruments under ASC 815 as of September 30, 2025, up from $17.33 million at the end of 2024, reflecting a significant increase of 276%[104] - The Company does not use derivatives for speculative purposes, focusing instead on managing economic exposure to interest rate movements[115] Credit Losses and Risks - Provision for credit losses for the nine months ended September 30, 2025, was $67,965,000, compared to $84,068,000 for the same period in 2024, showing a decrease of 19.1%[98] - There is a risk of increased delinquencies and declines in real estate values, which may necessitate further increases in the company's allowance for credit losses[292] - The company is concerned about the impact of changes in interest rates on net interest income and net interest margin, which could adversely affect profitability[292] - The company faces challenges related to the accuracy and completeness of customer information used for credit decisions[292] Stock and Compensation - Stock-based compensation expense for Q3 2025 was $10.1 million, up from $9.5 million in Q3 2024, with total expenses for the nine months ended September 30, 2025, reaching $30.6 million compared to $27.6 million in 2024[165] - As of September 30, 2025, approximately 2,184,000 shares were available for future grants under the Company Stock Incentive Plans[164] - Outstanding restricted shares as of September 30, 2025, were 895,196 with a weighted average grant-date fair value of $101.71, compared to 895,742 shares at $90.99 in 2024[168] Comprehensive Income - The accumulated other comprehensive income (loss) balance at September 30, 2025, was $(314,808,000), a decrease from $(366,233,000) at July 1, 2025[169] - The net other comprehensive income during the period, net of tax, was $51,425,000 for the three months ended September 30, 2025[169] - The total amount reclassified from accumulated other comprehensive income into net income, net of tax, was $3,723,000 for the three months ended September 30, 2025[170] Future Outlook and Challenges - The company anticipates future growth through potential acquisitions and internal growth strategies, including the formation of additional de novo banks or branch offices[291] - The company is facing competitive pressures in the financial services sector, which may affect loan and deposit pricing, potentially leading to a loss of market share and reduced income from various products[292] - The company may encounter difficulties in identifying and completing favorable acquisitions, which could lead to unexpected losses[292] - There are potential risks associated with cybersecurity, including breaches and data corruption attempts, which could impact the company's operations[292] - The company is subject to regulatory changes that may affect its ability to market products and operate profitably in the mortgage business[292]