Financial 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, was $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, indicating a growth of 15.8%[97] - Net income for the three months ended September 30, 2025, was $216,254,000, compared to $170,001,000 for the same period in 2024, showing a growth 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] - Basic earnings per share for the three months ended September 30, 2025, was $2.82, up from $2.51 in 2024, reflecting a 12.3% increase[171] - The company reported a net income applicable to common shares of $188,913,000 for the three months ended September 30, 2025, compared to $163,010,000 in 2024, marking a 15.8% increase[171] Asset and Liability Management - Total assets at period end for September 30, 2025, reached $69,629,638,000, compared to $63,788,424,000 at the end of September 30, 2024, marking an increase of 9.5%[97] - The Company had a total notional amount of $7.1 billion in cash flow hedges, with a fair value of $54.717 million as of September 30, 2025[108] - As of September 30, 2025, the Company had interest rate derivative transactions with an aggregate notional amount of approximately $14.8 billion, up from $13.3 billion as of December 31, 2024[116] - The Company’s counterparty credit risk is managed through a comprehensive asset-liability management process and regular monitoring of credit exposure against established limits[126] 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] - The total derivatives designated as cash flow hedges under ASC 815 amounted to $65.3 million as of September 30, 2025, up from $17.33 million at the end of 2024, reflecting a significant increase of 276%[104] - The unrealized gain at the end of the period for cash flow hedges was $76.809 million as of September 30, 2025, compared to $75.452 million for the same period in 2024[111] - Changes in the fair value of derivatives not designated in hedging relationships are recorded directly in earnings, reflecting the Company's strategy to manage economic exposure[115] Credit Losses and Provisions - Provision for credit losses for the nine months ended September 30, 2025, was $67,965,000, a decrease from $84,068,000 in 2024, indicating a reduction 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] Regulatory and Market Risks - 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 is subject to regulatory changes that may affect its ability to market products and operate profitably in the mortgage business[292] - The company may experience increased costs related to compliance and regulatory capital requirements[292] Stock and Compensation - Stock-based compensation expense for Q3 2025 was $10.1 million, up from $9.5 million in Q3 2024, indicating a year-over-year increase of 6.3%[165] - Outstanding restricted shares as of September 30, 2025, were 895,196 shares with a weighted average grant-date fair value of $101.71[168] - Performance-based stock awards outstanding as of September 30, 2025, totaled 378,560 shares with a weighted average grant-date fair value of $102.35[168] Fair Value Measurements - The fair value of delinquent mortgage loans held-for-sale was estimated at $54.7 million, with a weighted average discount rate of 5.14% and credit loss discounts ranging from 0%-26%[137] - The total fair value of derivative assets was $208.96 million, with $7.1 million classified as Level 3 related to interest rate locks[141][142] - The total assets measured at fair value on a recurring basis amounted to $6.22 billion as of September 30, 2025[145] Future Outlook - The company anticipates future growth through potential acquisitions and internal growth strategies, as indicated in its forward-looking statements[291] - The company has no obligation to update forward-looking statements, which may not correspond to actual future results[293]
Wintrust Financial Corporation(WTFCM) - 2025 Q3 - Quarterly Report