WINTRUST FINL(WTFCP) - 2025 Q4 - Annual Results

Financial 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 $223,024, a 3% increase from Q3 2025 and a 20% increase from Q4 2024[41]. - Net income for the three months ended March 31, 2025, was $216,254, an increase from $195,527 in the previous quarter, representing a 10.6% growth[49]. - Net income applicable to common shares for the quarter was $214,657 thousand, up from $188,913 thousand in the prior quarter, representing a growth of 13.5%[94]. - Basic net income per common share increased to $3.21 for the three months ended December 31, 2025, compared to $2.82 in the previous quarter, reflecting a growth of 13.8%[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 Q3 2025 and an 11% increase from Q4 2024[41]. - Total deposits increased to $57.72 billion, a 7% increase from Q3 2025 and a 10% increase from Q4 2024[41]. - Total loans, net of unearned income increased to $53,105,101 thousand, reflecting an 8% growth from the previous quarter[50]. - Total deposits rose to $57,717,191 thousand, 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 by four basis points to 3.52% in the fourth quarter of 2025, with a fully taxable-equivalent basis of 3.54%[5]. - Net interest margin was 3.52%, a 4 basis point increase from Q3 2025[41]. - Total interest income for the three months ended March 31, 2025, was $963,834, an increase from $920,908 for the previous quarter, representing a 4.0% growth[49]. - The yield on loans, net of unearned income, was 6.43% for the twelve months ended December 31, 2025, down from 6.82% in 2024[65]. 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 the year ended December 31, 2025, was $501,940, an increase of $13,615 or 3% compared to $488,325 in 2024[84]. - Total non-interest expense for the year ended December 31, 2025, was $1,512,032,000, reflecting an increase of $109,308,000 or 8% compared to 2024[90]. Credit Quality and Losses - The provision for credit losses totaled $27.6 million in the fourth quarter of 2025, up from $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 $162.6 million and 0.31% of total loans at September 30, 2025[6]. - The allowance for credit losses stood at $460,465 thousand, up from $454,586 thousand in the previous quarter[44]. - The total allowance for credit losses was $460,465 thousand, reflecting a consistent level of risk management across the loan portfolio[75]. - The total non-performing loans as a percentage of total loans was 0.35% as of December 31, 2025, compared to 0.31% on September 30, 2025[79]. Market and Economic Conditions - Economic conditions, including housing prices and job market fluctuations, are identified as potential risks that could 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, may adversely affect the company's net interest income and margin, potentially impacting profitability[100]. - Competitive pressures in the financial services sector could lead to reduced income from loans, deposits, and advisory fees, affecting market share[100]. Strategic Initiatives - The company plans to continue its growth strategy, including potential acquisitions of banks and expansion of branch offices, as indicated in its forward-looking statements[97]. - Wintrust operates 16 community bank subsidiaries across various regions, enhancing its market presence in the greater Chicago area and beyond[96]. - The company’s non-bank businesses include services such as insurance funding and mortgage origination, contributing to diversified revenue streams[98].