Wintrust Financial Corporation Reports Record Net Income

Core Insights - Wintrust Financial Corporation reported record net income of $384.6 million for the first half of 2025, an increase from $339.7 million in the same period of 2024, with diluted earnings per share rising to $5.47 from $5.21 [1] - The company achieved record quarterly net income of $195.5 million in Q2 2025, up from $189.0 million in Q1 2025, with pre-tax, pre-provision income also reaching a record of $289.3 million [2][3] - The CEO highlighted strong balance sheet growth and a stable net interest margin of 3.54% in Q2 2025, driven by average earning asset growth [3][4] Financial Performance - Total loans increased by $2.3 billion, or 19% annualized, while total deposits rose by approximately $2.2 billion, or 17% annualized in Q2 2025 [4][5] - Net interest income for Q2 2025 was $546.7 million, an increase from $526.5 million in Q1 2025, attributed to strong average earning asset growth of $1.9 billion [5][11] - Non-interest income totaled $124.1 million in Q2 2025, up from $116.6 million in Q1 2025, with wealth management revenue increasing to $36.8 million [19][20] Asset Quality - The allowance for credit losses was $457.5 million as of June 30, 2025, with a provision for credit losses of $22.2 million in Q2 2025, down from $24.0 million in Q1 2025 [14][16] - Net charge-offs totaled $13.3 million in Q2 2025, consistent with the previous quarter at 11 basis points of average total loans [16][18] Business Segments - Community banking saw growth in commercial, commercial real estate, and residential real estate loan portfolios in Q2 2025 [30][31] - Specialty finance reported originations of $6.1 billion in insurance premium financing receivables during Q2 2025, with significant increases in average balances [32] - Wealth management services generated $36.8 million in revenue, with approximately $53.2 billion in assets under administration as of June 30, 2025 [33] Capital and Ratios - The company completed the issuance of $425 million of Series F Preferred Stock, redeeming $412.5 million of Series D and E preferred stock [9] - As of June 30, 2025, the Tier 1 capital ratio was 11.4%, and the total capital ratio was 12.9% [41]