Wintrust(US:WTFC)2026-01-20 22:10Financial Performance - Wintrust Financial Corporation reported record net income of $823.8 million, or $11.40 per diluted common share, for the year ended December 31, 2025, representing a 19% increase from $695.0 million, or $10.31 per diluted common share, in 2024[2]. - For the fourth quarter of 2025, net income was $223.0 million, or $3.15 per diluted common share, compared to $216.3 million, or $2.78 per diluted common share, in the third quarter of 2025[3]. - Net income for Q4 2025 was $223.02 million, a 3% increase from Q3 2025 and a 20% increase from Q4 2024[41]. - Net income reached $223,024 thousand, reflecting a 3.6% increase compared to $216,254 thousand in the previous quarter[44]. - Basic net income per common share for the three months ended December 31, 2025, was $3.21, compared to $2.82 in the previous quarter, representing a 13.8% increase[49]. - Net income for the three months ended December 31, 2025, was $223,024,000, an increase from $216,254,000 in the previous quarter, representing a growth of 0.35%[95]. - The company reported a diluted net income per common share of $3.15 for the three months ended December 31, 2025, compared to $2.78 in the previous quarter, a growth of 13.3%[95]. Loan and Deposit Growth - Total loans increased by $1.0 billion, or 8% annualized, and total deposits also increased by $1.0 billion, or 7% annualized, in the fourth quarter of 2025[5]. - Total loans reached $53.11 billion, an 8% increase from the previous year[41]. - Total deposits grew to $57.72 billion, reflecting a 7% year-over-year increase[41]. - Total loans rose to $53,105,101 thousand, up 2.0% from $52,063,482 thousand in the prior quarter[44]. - Total deposits increased to $57,717,191 thousand, a growth of 1.8% from $56,711,381 thousand in the previous quarter[44]. - Total deposits rose to $57,717,191,000, marking a 7% growth from the previous quarter[53]. Interest Income and Margin - Net interest income for the fourth quarter of 2025 reached $583.9 million, an increase of $16.9 million from $567.0 million in the third quarter of 2025, driven by net interest margin improvement[5]. - The net interest margin improved to 3.52% in the fourth quarter of 2025, up four basis points from the previous quarter[5]. - Net interest income (GAAP) for Q4 2025 was $583,874 thousand, up from $567,010 thousand in Q3 2025, reflecting a growth of 2.3%[59]. - Total interest income for the three months ended December 31, 2025, was $956.3 million, an increase from $920.9 million in the previous quarter, representing a 3.8% growth[49]. - The taxable-equivalent net interest margin was 3.54% for Q4 2025, up from 3.50% in Q3 2025[93]. Non-Interest Income and Expenses - Non-interest income totaled $130.4 million in the fourth quarter of 2025, a slight decrease from $130.8 million in the third quarter of 2025[25]. - Total non-interest expense for Q4 2025 was $384,453,000, an increase of $4,425,000 or 1% compared to Q3 2025, and an increase of $15,914,000 or 4% compared to Q4 2024[90]. - Total Non-Interest Income for Q4 2025 was $130,390, a decrease of $437 or 0% compared to Q3 2025, but an increase of $16,939 or 15% compared to Q4 2024[84]. - Total non-interest expense for the year ended December 31, 2025, was $1,512,032,000, an increase of $109,308,000 or 8% compared to 2024[90]. Credit Quality and Losses - Provision for credit losses totaled $27.6 million in the fourth quarter of 2025, compared to $21.8 million in the third quarter of 2025[5]. - Non-performing loans increased to $185.8 million, comprising 0.35% of total loans as of December 31, 2025, compared to 0.31% in the previous quarter[6]. - The allowance for credit losses was $460,465 thousand, up from $454,586 thousand in the prior quarter[44]. - The total charge-offs for the three months ended December 31, 2025, amounted to $27,076 thousand, a decrease from $28,846 thousand in the previous quarter[74]. - The allowance for loan losses as a percentage of loans at period end was 0.71%, slightly down from 0.74% in the previous quarter[75]. Market and Economic Conditions - Economic conditions, including housing prices and job market trends, are critical factors that may impact the company's loan portfolio performance[99]. - The company is facing challenges in the commercial real estate market, particularly in the Chicago metropolitan area, southern Wisconsin, and west Michigan, which may lead to increased credit loss allowances[100]. - The interest rate environment, including prolonged low rates or rising rates, could materially adversely affect the company's net interest income and profitability[100]. - Competitive pressures in the financial services sector may impact the pricing of the company's loan and deposit products, potentially resulting in a loss of market share[100]. Strategic Initiatives - The company plans to continue its growth strategies, including potential acquisitions of banks and expansion of branch offices[97]. - Wintrust operates 16 community bank subsidiaries across multiple states, enhancing its market presence in the Midwest[96]. - The company’s non-bank businesses include insurance funding and mortgage origination, contributing to diversified revenue streams[98].