Wintrust(US:WTFC)2026-01-21 17:02Financial Data and Key Metrics Changes - For the full year 2025, the company reported net income of $824 million, a 19% increase from $695 million in 2024. Earnings per diluted share rose to $11.40 from $10.31 in 2024, and tangible book value increased by over $13 to nearly $89 per share [5][6][10] - Total assets at year-end were just over $71 billion, with a record net income of $223 million in the fourth quarter, up 3% or $7 million from the prior quarter [5][12] Business Line Data and Key Metrics Changes - Loan growth for the fourth quarter was approximately $1 billion, representing an 8% increase 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 by 11% and 10%, respectively [9] 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 at 35 basis points [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 and is open to opportunistic acquisitions, although the current plan is to grow the business organically [43][68] Other Important Information - The company has a buyback plan authorized for over $200 million, which could be utilized if organic growth opportunities do not present themselves [50] - The mortgage warehouse business is expected to be a significant factor in growth, with management optimistic about potential increases in volume if mortgage rates decline [92][95] Q&A Session Summary Question: Can you elaborate on loan growth expectations? - Management indicated cautious optimism based on local economic conditions and strong market positioning in C&I and CRE spaces, with expectations for solid loan growth despite typical seasonal softness in the first quarter [26][27] Question: What are the expectations for operating leverage in 2026? - The company anticipates mid to high single-digit revenue growth with expenses expected to grow at 4%-5%, aiming for positive operating leverage [30][32] Question: How is the competitive landscape affecting growth? - Management noted that disruptions among competitors focusing elsewhere could benefit the company, which differentiates itself through service and local market knowledge [59][60] Question: What is the outlook for the mortgage banking business? - Management remains optimistic about the mortgage market, expecting potential increases in volume if rates decline, while acknowledging the challenges of predicting interest rates [92][94] Question: What are the strategic benefits of operating multiple banking charters? - The company believes that having 16 charters keeps them closer to the market and provides advantages such as deposit insurance, which they do not plan to give up [72][73]