Wintrust Financial (NasdaqGS:WTFC) Q4 2025 Earnings call January 21, 2026 11:00 AM ET Company ParticipantsTerry McEvoy - Managing DirectorCasey Haire - Managing DirectorNone - Company RepresentativeRichard Murphy - Vice Chairman and Chief Lending OfficerTim Crane - President and CEOChris McGratty - Managing DirectorDavid Dykstra - Vice Chairman and COOBen Gerlinger - VP of Equity ResearchJanet Lee - Director of Equity ResearchDavid Long - Managing DirectorJared Shaw - Managing DirectorBrendan Nosal - Direct ...

Financial Data and Key Metrics Changes - For full year 2025, the company reported net income of $824 million, up 19% from $695 million in 2024. Earnings per diluted share increased to $11.40 from $10.31 in 2024, and tangible book value rose by over $13 to nearly $89 per share. Total assets at year-end were just over $71 billion [4][5]. - The fourth quarter net income was $223 million, a record, up 3% or $7 million from the prior quarter. Net interest income also reached a record level, driven by a $1.1 billion increase in average earning assets and a four basis points increase in net interest margin [4][8]. Business Line Data and Key Metrics Changes - Loan growth for the fourth quarter was approximately $1 billion, representing 8% growth on an annualized basis, while deposit growth was also $1 billion, reflecting a 7% increase over the prior quarter. For the full year, loans and deposits grew 11% and 10%, respectively [8][9]. - Non-interest income totaled $130.4 million in the fourth quarter, slightly down from $130.8 million in the prior quarter, impacted by lower security gains [10]. Market Data and Key Metrics Changes - The company moved into third position in deposit market share in the Chicago area, with strong gains in Wisconsin and West Michigan [5]. - The credit quality remained solid, with non-performing loans increasing slightly but remaining manageable at 35 basis points [14][15]. Company Strategy and Development Direction - The primary objective for 2026 is to continue delivering solid and consistent financial performance, with expectations of mid to high single-digit loan growth funded by a similar level of deposit growth [18][19]. - The company plans to invest in tools, technology, and people to support growth while maintaining a stable net interest margin around 3.5% [18][19]. Management's Comments on Operating Environment and Future Outlook - Management expressed cautious optimism regarding local economies, noting low employment levels and a solid quarter for loan growth. They anticipate that the first quarter may be softer but expect to meet targets in the first half of the year [23][24]. - The management team remains focused on organic growth and is open to acquisitions if opportunities arise, but the current plan is to grow the business organically [40][46]. Other Important Information - The company has a buyback plan authorized for over $200 million, which could be utilized if organic growth opportunities do not require it [46]. - The company continues to monitor its exposure to commercial real estate loans, which comprise roughly one quarter of its total portfolio, and sees signs of stabilization in this area [15][17]. Q&A Session Summary Question: Can you talk about loan growth and what drives it? - Management expressed cautious optimism about local economies and noted broad-based loan growth, with expectations for solid performance in the first half of the year despite typical seasonality [22][23]. Question: What are the expectations for operating leverage and expenses in 2026? - Management expects mid to high single-digit revenue growth with expenses growing in the 4%-5% range, aiming for positive operating leverage [26][28]. Question: Can you discuss deposit costs and growth drivers? - Management highlighted effective management of deposit costs and noted that growth mainly came from non-maturity deposits, with a minor benefit expected from CD repricing [32][34]. Question: What areas are not meeting expectations? - Management indicated that the mortgage business could be stronger and emphasized a disciplined approach to commercial activity [38]. Question: Is there any appetite for M&A outside of organic growth? - Management stated that while they are focused on organic growth, they remain opportunistic regarding acquisitions in other Midwest geographies [65]. Question: What are the strategic benefits of operating multiple banking charters? - Management believes that having 16 charters keeps them closer to the market and provides valuable benefits, including deposit insurance and market share advantages [70][71].