Wintrust(US:WTFC)2026-01-21 17:02Financial 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 a share [5][6][10] - Total assets at year-end were just over $71 billion, with fourth quarter net income reaching a record $223 million, up 3% or $7 million from the prior quarter [5][6] 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 [9][10] - For the full year, loans and deposits grew 11% and 10% respectively, with net interest income reaching a record level due to a $1.1 billion increase in average earning assets and a four basis points increase in net interest margin [9][10][12] 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 [7] - The credit quality remained solid, with non-performing loans increasing slightly but remaining manageable, indicating a stable credit environment [16][17] 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 similar deposit growth [19][20] - The company plans to invest in tools, technology, and personnel to support growth while maintaining a stable net interest margin around 3.5% [19][20] Management's Comments on Operating Environment and Future Outlook - Management expressed cautious optimism regarding local economies, with low unemployment levels and a solid quarter for loan growth [26][27] - The company remains focused on organic growth, with a disciplined approach to potential acquisitions, and is monitoring the competitive landscape closely [42][43] Other Important Information - The company has a buyback plan of over $200 million authorized, which could be utilized if organic growth opportunities do not present themselves [50] - The mortgage warehouse business is expected to remain stable, with potential upside if the mortgage market improves [75][76] Q&A Session Summary Question: Can you talk about loan growth and what drives mid to high single-digit growth? - Management indicated cautious optimism based on local economic conditions and strong loan growth momentum, despite typical seasonal softness in the first quarter [26][27] Question: What are the expectations for operating leverage and expense plans for 2026? - The company expects revenue growth of 7.5%-8% with expenses growing at 4%-5%, aiming for positive operating leverage [30][31] Question: How is the competitive landscape affecting deposit costs? - Management noted effective management of deposit costs in response to Fed movements and a favorable trend in DDA deposits [36][37] Question: What are the expectations for the mortgage banking outlook? - The company remains optimistic about the mortgage market, anticipating potential increases in volume and gain on sale margins if rates decrease [91][92] Question: What is the company's stance on M&A activity? - The focus remains on organic growth, with opportunistic consideration for smaller acquisitions if they arise [43][44]