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 $223.0 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]. - 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]. - Basic net income per common share for the same period was $3.21, up from $2.82 in the previous quarter, reflecting a 13.8% increase [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 $53.1 billion in Q4 2025, an 8% increase from Q3 2025 and an 11% increase from Q4 2024 [41]. - Total deposits rose to $57.72 billion, reflecting a 1.8% increase from $56.71 billion in the previous quarter [48]. - Total deposits rose to $57,717,191 thousand, marking a 7% growth year-over-year [53]. - Non-interest-bearing deposits increased to $11.42 billion, up 4.3% from $10.95 billion in the prior quarter [48]. - Commercial and industrial loans rose to $7,267,505 thousand, a 7% increase from the previous quarter [50]. 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 improved net interest margin and average earning asset growth [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 for the quarter was $583,874 thousand, an increase of 2.9% from $567,010 thousand in the prior quarter [44]. - Total interest income for the three months ended December 31, 2025, was $956,326,000, an increase from $920,908,000 in the previous quarter [49]. - The interest rate spread for the twelve months ended December 31, 2025, was 2.76%, compared to 2.61% 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 increased to $384,453,000 for the three months ended December 31, 2025, compared to $381,461,000 in the previous quarter [49]. - 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 salaries and employee benefits for the year ended December 31, 2025, were $873,292,000, up $56,184,000 or 7% from 2024 [90]. Credit Quality and Losses - The 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 $162.6 million and 0.31% in the prior quarter [6]. - The allowance for credit losses stood at $460,465 thousand, up from $454,586 thousand in the previous quarter [44]. - The annualized net charge-offs as a percentage of total loans was 0.17% for the three months ended December 31, 2025, compared to 0.19% in the previous quarter [74]. - Total non-performing assets increased to $206,647,000 as of December 31, 2025, up from $187,464,000 on September 30, 2025, representing a 6.3% increase [79]. Market and Economic Conditions - Economic conditions, including housing prices and job market trends, are critical factors 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, 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 strategy, including potential acquisitions of banks and specialty finance businesses, as well as forming new banks or branch offices [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 insurance funding and mortgage origination, contributing to diversified revenue streams [98].
Wintrust Financial Corporation(WTFCM) - 2025 Q4 - Annual Results