Wintrust Financial Corporation Reports Quarterly Results for the Period Ended March 31, 2025

Press release · 05/10 04:52

Wintrust Financial Corporation, a bank holding company, reported its quarterly financial results for the period ended March 31, 2025. The company’s net income was $123.1 million, or $0.93 per diluted share, compared to $114.5 million, or $0.86 per diluted share, in the same period last year. Total assets increased 4.1% to $34.4 billion, while total deposits grew 3.5% to $26.3 billion. The company’s net interest income was $243.8 million, up 5.1% from the same period last year, driven by a 12-basis-point increase in the net interest margin to 3.63%. Non-interest income was $64.3 million, down 2.1% from the same period last year, primarily due to a decline in mortgage banking income. The company’s efficiency ratio improved to 54.3%, compared to 56.1% in the same period last year.

Financial Performance Overview

Wintrust Financial Corporation, a financial holding company, reported strong financial results for the first quarter of 2025. The company recorded net income of $189.0 million, a 1% increase compared to the same period in 2024. This was driven by growth in net interest income, partially offset by a decrease in non-interest income and an increase in non-interest expense.

Net Interest Income and Margin

The company’s net interest income, which is the difference between interest earned on loans and investments and interest paid on deposits and borrowings, increased by 13% to $526.5 million in the first quarter of 2025 compared to the same period in 2024. This was primarily due to growth in the company’s loan portfolio, which increased by 13% to $48.7 billion.

The net interest margin, which measures the difference between the yield on interest-earning assets and the cost of interest-bearing liabilities, was 3.54% in the first quarter of 2025, down slightly from 3.57% in the same period in 2024. This decrease was due to a decline in loan and other earning asset yields, as well as a decline in the net free funds contribution, partially offset by a reduction in funding costs.

Non-Interest Income

Non-interest income, which includes fees and other revenue from the company’s various business lines, decreased by 17% to $116.6 million in the first quarter of 2025 compared to the same period in 2024. This was primarily due to a $20.0 million gain recognized in the first quarter of 2024 related to the sale of the company’s Retirement Benefits Advisors division, as well as a decrease in mortgage banking revenue.

Non-Interest Expense

Non-interest expense, which includes salaries, benefits, and other operating costs, increased by 10% to $366.1 million in the first quarter of 2025 compared to the same period in 2024. This was primarily due to higher salaries and employee benefits, as well as increased software and equipment expenses.

Credit Quality

The company’s credit quality remained strong, with non-performing loans at 0.35% of total loans as of March 31, 2025, compared to 0.34% as of March 31, 2024. The allowance for credit losses, which represents management’s estimate of expected credit losses in the loan portfolio, was 0.92% of total loans as of March 31, 2025, down from 0.99% as of March 31, 2024.

Segment Performance

The company’s three primary business segments – community banking, specialty finance, and wealth management – all contributed to the overall financial performance.

The community banking segment’s net income increased by 12% to $134.3 million in the first quarter of 2025, driven by growth in net interest income and partially offset by higher non-interest expense.

The specialty finance segment’s net income increased by 18% to $50.3 million, primarily due to growth in net interest income and non-interest income.

The wealth management segment’s net income decreased by 82% to $4.5 million, primarily due to the $20.0 million gain recognized in the first quarter of 2024 related to the sale of the Retirement Benefits Advisors division.

Financial Condition

Total assets grew by 14% to $65.9 billion as of March 31, 2025, compared to March 31, 2024, driven by growth in the loan portfolio and liquidity management assets. Total deposits increased by 15% to $53.6 billion, reflecting the company’s strong deposit franchise and ability to attract and retain customer deposits.

The company’s capital ratios remained strong, with a Tier 1 leverage ratio of 9.6% and a Common Equity Tier 1 capital ratio of 10.1% as of March 31, 2025, well above regulatory requirements.

Outlook

The company’s balanced business model, strong deposit franchise, and disciplined risk management approach have positioned it well to navigate the current economic environment. However, the company faces several risks and uncertainties, including the potential impact of changes in interest rates, competition, regulatory changes, and the overall economic conditions.

The company remains focused on organic growth, strategic acquisitions, and diversifying its revenue streams to continue delivering value to its shareholders. The management team is committed to maintaining the company’s strong capital position and prudent risk management practices to support its long-term success.