Wintrust Financial Q4 Earnings Call Highlights

Core Themes - Wintrust demonstrated disciplined growth above most peers, achieving third position in deposit market share in the Chicago area during 2025, with strong gains in Wisconsin and West Michigan [1] - The company reported record net income of $223 million for Q4 2025, a 3% increase sequentially, attributed to solid loan and deposit growth, improved margins, stable credit quality, and controlled non-interest expenses [2] - Full-year 2025 net income reached $824 million, up 19% from $695 million in 2024, with earnings per diluted share increasing to $11.40 from $10.31, and tangible book value rising to nearly $89 [3][4] Financial Performance - Wintrust's total assets ended 2025 at just over $71 billion, with Q4 net income being a record at $223 million [3][4] - The company achieved an 11.2% growth in net revenue, outpacing non-interest expense growth by 340 basis points, while investing in technology and personnel [7] - Non-interest income for Q4 totaled $130.4 million, remaining flat compared to the prior quarter, impacted by lower securities gains and softness in mortgage revenue [10][11] Loan and Deposit Growth - Loans and deposits increased by approximately 11% and 10% for the year, respectively, with both categories rising about $1.0 billion in Q4 [6][8] - The net interest margin remained stable around 3.5%, supporting record net interest income, with a fourth-quarter margin of 3.54% [9][6] Credit Quality - Credit performance remained solid, with non-performing loans slightly increasing to $185.8 million, but still manageable, and net charge-offs decreasing to 17 basis points [14] - The company closely monitors commercial real estate, which constitutes about one-quarter of its total loan portfolio, with signs of stabilization in non-performing loans [14] 2026 Outlook - Management targets mid- to high-single-digit loan and deposit growth for 2026, with a stable net interest margin around 3.5% [5][15] - The company expects positive operating leverage, with expenses growing more slowly than revenues, and anticipates improvements in wealth management and service-based fee income [16][15] - An existing share repurchase authorization of over $200 million is in place, with a focus on organic growth as the main priority [17]