Financial Data and Key Metrics Changes - WinTrust reported a record net income of $216 million for Q3 2025, up nearly 11% from $195 million in the previous quarter [5][10] - Net interest income increased by $20 million to $567 million, driven by solid loan and balance sheet growth [5][10] - Total loans reached $52 billion, reflecting an 11% year-to-date increase on an annualized basis [6][10] - Total deposits were nearly $57 billion, with deposit growth of $895 million, representing a 6% increase over the prior quarter [9][10] - Net interest margin was 3.5%, slightly down from the previous quarter but within the targeted range [6][10] Business Line Data and Key Metrics Changes - Loan growth was broad-based, with commercial real estate loans increasing by $327 million and life finance loans growing by $252 million [15][16] - Non-interest income totaled $130.8 million, up approximately $6.7 million compared to the prior quarter, supported by higher wealth management and mortgage revenue [12][10] - Non-interest expenses decreased slightly to $380 million from $381.5 million in the previous quarter, indicating well-controlled expenses [12][10] Market Data and Key Metrics Changes - WinTrust achieved deposit share gains in key markets, ranking third in deposit market share in Illinois, up one position [7][10] - The company continues to see strong growth in its franchises in Wisconsin and West Michigan, with significant upside potential [7][10] Company Strategy and Development Direction - The company remains focused on core deposit growth as a key strategy, leveraging its advantageous market position [7][10] - WinTrust aims to continue generating loan and deposit growth in the mid to high single-digit range while maintaining a stable net interest margin [23][10] - The management emphasizes a disciplined approach to underwriting and a commitment to customer relationships in the Midwest [24][10] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the stability of net interest margin despite potential rate cuts, citing a balanced deposit structure [35][10] - The overall credit environment remains stable, with proactive measures in place to address any challenges [20][10] - Management noted a sense of measured optimism among customers as they approach year-end [20][10] Other Important Information - The company has consistently grown tangible book value per share since going public and is on track to do so again in 2025 [13][10] - A one-time impact from preferred stock redemption reduced fully diluted net income per common share by $0.28 in Q3 [14][10] Q&A Session Summary Question: Can you talk about the loan growth drivers and any NDFI exposure? - Management highlighted unique market positioning in Chicago, gaining market share from larger banks, and noted that 70% of NDFI exposure is in mortgage warehouse lines with no losses experienced [28][33] Question: How do you feel about holding the margin in the current range with potential Fed rate cuts? - Management expressed confidence in maintaining the margin around 3.5%, citing a balanced deposit structure and effective hedging strategies [35][36] Question: What is the outlook for commercial loan growth? - Management indicated that the decline in commercial loan growth was more about timing than market competition, with consistent opportunities in the pipeline [40][41] Question: Can you expand on the strategy to focus on Midwest markets? - Management emphasized the attractiveness of the Midwest markets and the company's ability to take market share from competitors, preferring organic growth over expansion into other geographies [42][44] Question: What is the outlook for premium finance loans? - Management remains optimistic about premium finance growth, indicating it will continue to be a significant part of the loan portfolio [75][108] Question: Are there any segments or industries being closely monitored for credit? - Management is paying close attention to higher education and healthcare sectors, ensuring customers are well-capitalized to weather potential challenges [99][100]