Wintrust Financial Corporation Reports Record Net Income

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ROSEMONT, Ill., July 21, 2025 (GLOBE NEWSWIRE) -- Wintrust Financial Corporation (“Wintrust”, “the Company”, “we” or “our”) ( WTFC) announced record net income of $384.6 million, or $5.47 per diluted common share, for the first six months of 2025, compared to net income of $339.7 million, or $5.21 per diluted common share for the same period of 2024. Pre-tax, pre-provision income (non-GAAP) for the first six months of the year totaled a record $566.3 million, compared to $523.0 million for the first six months of 2024.

The Company recorded record quarterly net income of $195.5 million, or $2.78 per diluted common share, for the second quarter of 2025, compared to net income of $189.0 million, or $2.69 per diluted common share for the first quarter of 2025. Pre-tax, pre-provision income (non-GAAP) for the second quarter of 2025 totaled a record $289.3 million, as compared to $277.0 million for the first quarter of 2025.

Timothy S. Crane, President and Chief Executive Officer, commented, “Building on the momentum of a strong first quarter, we are pleased to deliver record results again this quarter, reflecting the underlying strength and momentum of our business. A combination of balance sheet growth and a stable net interest margin drove our record results in the second quarter of 2025.”

Additionally, Mr. Crane noted, “Net interest margin in the second quarter remained within our expected range at 3.54% and we generated record net interest income driven by average earning asset growth. We expect a relatively stable net interest margin coupled with continued balance sheet growth to drive net interest income higher in the third quarter.”

Highlights of the second quarter of 2025:
Comparative information to the first quarter of 2025, unless otherwise noted

  • Total loans increased by $2.3 billion, or 19% annualized.
  • Total deposits increased by approximately $2.2 billion, or 17% annualized.
  • Total assets increased by $3.1 billion, or 19% annualized.
  • Net interest income increased to $546.7 million in the second quarter of 2025, compared to $526.5 million in the first quarter of 2025, driven by strong average earning asset growth.
    • Net interest margin was 3.52% (3.54% on a fully taxable-equivalent basis, non-GAAP) during the second quarter of 2025.
  • Non-interest income was impacted by the following:
    • Wealth management revenue totaled $36.8 million in the second quarter of 2025, compared to $34.0 million in the first quarter of 2025.
    • Mortgage banking revenue totaled $23.2 million in the second quarter of 2025, compared to $20.5 million in the first quarter of 2025. An unfavorable fair value mark of $1.4 million was offset by an increase in operational revenue of $4.1 million driven by higher origination volumes and improved production margin. For more information regarding mortgage banking revenue, see Table 16 in this report.
    • Net gains on investment securities totaled approximately $650,000 in the second quarter of 2025, compared to net gains of $3.2 million in the first quarter of 2025.
  • Non-interest expense was impacted by the following:
    • Advertising and Marketing increased by $6.5 million and totaled $18.8 million in the second quarter of 2025. The increase in the quarter was related to planned and primarily seasonal expenses in various sports sponsorships and other summer community sponsorship events.
    • Macatawa Bank acquisition-related costs were $2.9 million in the second quarter of 2025, compared to $2.7 million in the first quarter of 2025.
  • Provision for credit losses totaled $22.2 million in the second quarter of 2025, compared to a provision for credit losses of $24.0 million in the first quarter of 2025.
  • Net charge-offs totaled $13.3 million, or 11 basis points of average total loans on an annualized basis, in the second quarter of 2025 compared to $12.6 million, or 11 basis points of average total loans on an annualized basis, in the first quarter of 2025.

Mr. Crane noted, “Solid loan growth in the second quarter totaled $2.3 billion, or 19% on an annualized basis. We are pleased with our diversified loan growth across all major loan portfolios and strong seasonal growth in our property & casualty insurance premium finance business. Loan pipelines remain strong and we expect loan growth in the mid-to-high single digits in the second half of the year. We continue to be prudent in our review of credit opportunities, ensuring our loan growth adheres to our conservative credit standards. Strong deposit growth totaled $2.2 billion, or 17% on an annualized basis, in the second quarter of 2025. Our loan growth was funded by our deposit growth in the second quarter of 2025 resulting in our loans-to-deposits ratio ending the quarter at 91.4%. We continue to benefit from our customer relationships and unique market positioning to generate deposits, grow loans and enhance our long-term franchise value.”

Commenting on credit quality, Mr. Crane stated, “Disciplined credit management, supported by thorough portfolio reviews, has driven consistent positive outcomes by enabling early identification and resolution of problem credits. We continue to be conservative and diversified in regard to maintaining our strong credit standards. We believe the Company’s reserves are appropriate and we remain committed to sustaining high credit quality as evidenced by our low levels of net charge-offs and non-performing loans as well as our core loan allowance for credit losses of 1.37%.”

In summary, Mr. Crane concluded, “We are proud of our second quarter performance and record results year to date. We expect our strong momentum to continue into the third quarter as our loan growth in the second quarter provides positive revenue momentum. The balance sheet growth in the second quarter highlights our enviable core deposit franchise and multifaceted business model. Our commitment to growing net interest income, disciplined expense control and conservative credit standards should lead to increasing our franchise value.”

The graphs shown on pages 3-7 illustrate certain financial highlights of the second quarter of 2025 as well as historical financial performance. See “Supplemental Non-GAAP Financial Measures/Ratios” at Table 18 for additional information with respect to non-GAAP financial measures/ratios, including the reconciliations to the corresponding GAAP financial measures/ratios.

Graphs available at the following link: http://ml.globenewswire.com/Resource/Download/bd030502-a094-4ebe-b02a-3c9bb828b393

SUMMARY OF RESULTS:

BALANCE SHEET

Total assets increased $3.1 billion in the second quarter of 2025 compared to the first quarter of 2025. Total loans increased by $2.3 billion compared to the first quarter of 2025. The increase in loans was driven by growth across all major loan portfolios, including seasonally higher Premium Finance Receivables - Property and Casualty portfolio.

Total liabilities increased by $2.5 billion in the second quarter of 2025 compared to the first quarter of 2025, driven by a $2.2 billion increase in total deposits. Robust organic deposit growth in the second quarter of 2025 was driven by our diverse deposit product offerings. Non-interest bearing deposit balances have remained stable in recent quarters. The Company's loans-to-deposits ratio ended the quarter at 91.4%.

On May 22, 2025, the Company completed the issuance of $425 million of Series F Preferred Stock. The issuance was in contemplation of redeeming $412.5 million of Series D and Series E preferred stock that was expected to reprice at rates higher than existing market rates. The Series D and Series E Preferred Stock were redeemed on July 15, 2025. The Tier 1 capital ratio, Total capital ratio, and Tier 1 leverage ratio noted in the “Selected Financial Highlights” would have been 10.8%, 12.3%, and 9.6%, respectively, if the Series D and Series E Preferred Stock had been redeemed as of June 30, 2025.

For more information regarding changes in the Company’s balance sheet, see Consolidated Statements of Condition and Table 1 through Table 3 in this report.

NET INTEREST INCOME

For the second quarter of 2025, net interest income totaled $546.7 million, an increase of $20.2 million compared to the first quarter of 2025. The $20.2 million increase in net interest income in the second quarter of 2025 was primarily due to average earning asset growth of $1.9 billion, or 12% annualized.

Net interest margin was largely stable at 3.52% (3.54% on a fully taxable-equivalent basis, non-GAAP) during the second quarter of 2025, down two basis points compared to the first quarter of 2025. The yield on earning assets declined two basis points during the second quarter of 2025 primarily due to a five basis point decrease in loan yields. The net free funds contribution declined two basis points compared to the first quarter of 2025. These declines were partially offset by a two basis point reduction in funding cost on interest-bearing deposits, compared to the first quarter of 2025.

For more information regarding net interest income, see Table 4 through Table 8 in this report.

ASSET QUALITY

The allowance for credit losses totaled $457.5 million as of June 30, 2025, an increase from $448.4 million as of March 31, 2025. A provision for credit losses totaling $22.2 million was recorded for the second quarter of 2025 compared to $24.0 million recorded in the first quarter of 2025. The lower provision for credit losses recognized in the second quarter of 2025 is primarily attributable to the macroeconomic outlook, partially offset by portfolio growth. While future economic performance remains uncertain, lower volatility in equity markets at the end of the second quarter reduced the provision related to macroeconomic uncertainty. This reduction was partially offset by qualitative additions to the provision that reflect widening credit spreads. For more information regarding the allowance for credit losses and provision for credit losses, see Table 11 in this report.

Management believes the allowance for credit losses is appropriate to account for expected credit losses. The Company is required to estimate expected credit losses over the life of the Company’s financial assets as of the reporting date. There can be no assurances, however, that future losses will not significantly exceed the amounts provided for, thereby affecting future results of operations. A summary of the allowance for credit losses calculated for the loan components in each portfolio as of June 30, 2025, March 31, 2025, and December 31, 2024 is shown on Table 12 of this report.

Net charge-offs totaled $13.3 million in the second quarter of 2025, an increase of $0.7 million compared to $12.6 million of net charge-offs in the first quarter of 2025. Net charge-offs as a percentage of average total loans were 11 basis points in both the first and second quarter of 2025 on an annualized basis. For more information regarding net charge-offs, see Table 10 in this report.

The Company’s loan portfolio delinquency rates remain low and manageable. For more information regarding past due loans, see Table 13 in this report.

Non-performing assets and non-performing loans have remained relatively stable compared to prior quarters. Non-performing assets totaled $212.5 million and comprised 0.31% of total assets as of June 30, 2025, as compared to $195.0 million, or 0.30% of total assets, as of March 31, 2025. Non-performing loans totaled $188.8 million and comprised 0.37% of total loans at June 30, 2025, as compared to $172.4 million and 0.35% of total loans at March 31, 2025. For more information regarding non-performing assets, see Table 14 in this report.

NON-INTEREST INCOME

Non-interest income totaled $124.1 million in the second quarter of 2025, increasing $7.5 million, compared to $116.6 million in the first quarter of 2025.

Wealth management revenue increased by $2.8 million in the second quarter of 2025, compared to the first quarter of 2025. The increase in the second quarter of 2025 was primarily driven by an increase in asset valuations within the quarter, coupled with an increase in activity following the transition of systems and support for brokerage and certain private client business to a new third party that occurred in the first quarter of 2025. Wealth management revenue is comprised of the trust and asset management revenue of Wintrust Private Trust Company and Great Lakes Advisors, the brokerage commissions, managed money fees and insurance product commissions at Wintrust Investments and fees from tax-deferred like-kind exchange services provided by the Chicago Deferred Exchange Company.

Mortgage banking revenue totaled $23.2 million in the second quarter of 2025, compared to $20.5 million in the first quarter of 2025. The increase in the second quarter of 2025 was primarily attributed to higher production revenue due to higher origination volumes and improved production margin. For more information regarding mortgage banking revenue, see Table 16 in this report.

Fees from covered call options increased by $2.2 million in the second quarter of 2025 compared to the first quarter of 2025. The Company has typically written call options with terms of less than three months against certain U.S. Treasury and agency securities held in its portfolio for liquidity and other purposes. Management has entered into these transactions with the goal of economically hedging security positions and enhancing its overall return on its investment portfolio. These option transactions are designed to mitigate overall interest rate risk and do not qualify as hedges pursuant to accounting guidance.

The Company recognized approximately $650,000 in net gains on investment securities in the second quarter of 2025 compared to $3.2 million in net gains in the first quarter of 2025. The net gains in the second quarter of 2025 were primarily the result of unrealized gains on the Company’s equity investment securities with a readily determinable fair value.

For more information regarding non-interest income, see Table 15 in this report.

NON-INTEREST EXPENSE

Non-interest expense totaled $381.5 million in the second quarter of 2025, increasing $15.4 million, compared to $366.1 million in the first quarter of 2025. Non-interest expense, as a percent of average assets, remained stable in the second quarter of 2025 at 2.32%.

Salaries and employee benefits expense increased by $8.0 million in the second quarter of 2025 as compared to the first quarter of 2025. This was primarily driven by an increased level of health insurance claims as well as higher mortgage and wealth management commissions expense attributable to an increase in mortgage originations and wealth management revenue in the quarter.

Advertising and marketing expenses in the second quarter of 2025 totaled $18.8 million, which was a $6.5 million increase compared to the first quarter of 2025. The increase in the second quarter was primarily driven by summer sports sponsorships and other summer community sponsorship events. Advertising and marketing expense are typically higher in the second and third quarters of the year.

The Macatawa Bank acquisition-related costs were $2.9 million in the second quarter of 2025, compared to $2.7 million in the first quarter of 2025.

For more information regarding non-interest expense, see Table 17 in this report.

INCOME TAXES

The Company recorded income tax expense of $71.6 million in the second quarter of 2025 compared to $64.0 million in the first quarter of 2025. The effective tax rates were 26.79% in the second quarter of 2025 compared to 25.30% in the first quarter of 2025. The effective tax rates were partially impacted by the tax effects related to share-based compensation, which fluctuate based on the Company’s stock price and timing of employee stock option exercises and vesting of other share-based awards. The Company recorded net excess tax benefits of $80,000 in the second quarter of 2025, compared to net excess tax benefits of $3.7 million in the first quarter of 2025 related to share-based compensation.

BUSINESS SUMMARY

Community Banking

Through community banking, the Company provides banking and financial services primarily to individuals, small to mid-sized businesses, local governmental units and institutional clients residing primarily in the local areas the Company services. In the second quarter of 2025, community banking increased its commercial, commercial real estate and residential real estate loan portfolios.

Mortgage banking revenue was $23.2 million for the second quarter of 2025, an increase of $2.6 million compared to the first quarter of 2025. See Table 16 for more detail. Service charges on deposit accounts totaled $19.5 million in the second quarter of 2025 as compared to $19.4 million in the first quarter of 2025. The Company’s gross commercial and commercial real estate loan pipelines remained solid as of June 30, 2025 indicating momentum for expected continued loan growth in the third quarter of 2025.

Specialty Finance

Through specialty finance, the Company offers financing of insurance premiums for businesses and individuals, equipment financing through structured loans and lease products to customers in a variety of industries, accounts receivable financing and value-added, out-sourced administrative services and other services. Originations within the insurance premium financing receivables portfolios were $6.1 billion during the second quarter of 2025. Average balances increased by $776.6 million, as compared to the first quarter of 2025. The Company’s leasing divisions’ portfolio balances increased in the second quarter of 2025, with capital leases, loans, and equipment on operating leases of $2.8 billion, $1.2 billion, and $289.8 million as of June 30, 2025, respectively, compared to $2.7 billion, $1.1 billion, and $280.5 million as of March 31, 2025, respectively. Revenues from the Company’s out-sourced administrative services business were $1.3 million in the second quarter of 2025, which was relatively stable compared to the first quarter of 2025.

Wealth Management

Through wealth management, the Company offers a full range of wealth management services, including trust and investment services, tax-deferred like-kind exchange services, asset management, and securities brokerage services. Wealth management revenue totaled $36.8 million in the second quarter of 2025, an increase as compared to the first quarter of 2025. At June 30, 2025, the Company’s wealth management subsidiaries had approximately $53.2 billion of assets under administration, which included $8.9 billion of assets owned by the Company and its subsidiary banks.

ITEMS IMPACTING COMPARATIVE FINANCIAL RESULTS

Business Combination

On August 1, 2024, the Company completed its previously announced acquisition of Macatawa, the parent company of Macatawa Bank. In conjunction with the completed acquisition, the Company issued approximately 4.7 million shares of common stock. Macatawa operates 26 full-service branches located throughout communities in Kent, Ottawa and northern Allegan counties in the state of Michigan. Macatawa offers a full range of banking, retail and commercial lending, wealth management and ecommerce services to individuals, businesses and governmental entities. As of August 1, 2024, Macatawa had fair values of approximately $2.9 billion in assets, $2.3 billion in deposits and $1.3 billion in loans. As of June 30, 2025, the Company recorded goodwill of approximately $142.1 million on the purchase.

WINTRUST FINANCIAL CORPORATION
Key Operating Measures

Wintrust’s key operating measures and growth rates for the second quarter of 2025, as compared to the first quarter of 2025 (sequential quarter) and second quarter of 2024 (linked quarter), are shown in the table below:

% or (1)
basis point (bp) change from
1st Quarter
2025
% or
basis point (bp) change from
2nd Quarter
2024
Three Months Ended
(Dollars in thousands, except per share data)Jun 30, 2025Mar 31, 2025Jun 30, 2024
Net income$195,527$189,039$152,3883%28%
Pre-tax income, excluding provision for credit losses (non-GAAP) (2)289,322277,018251,404415
Net income per common share – Diluted2.782.692.32320
Cash dividends declared per common share0.500.500.4511
Net revenue (3)670,783643,108591,757413
Net interest income546,694526,474470,610416
Net interest margin3.52%3.54%3.50%(2)bps2bps
Net interest margin – fully taxable-equivalent (non-GAAP) (2)3.543.563.52(2)2
Net overhead ratio (4)1.571.581.53(1)4
Return on average assets1.191.201.07(1)12
Return on average common equity12.0712.2111.61(14)46
Return on average tangible common equity (non-GAAP) (2)14.4414.7213.49(28)95
At end of period
Total assets$68,983,318$65,870,066$59,781,51619%15%
Total loans (5)51,041,67948,708,39044,675,5311914
Total deposits55,816,81153,570,03848,049,0261716
Total shareholders’ equity7,225,6966,600,5375,536,6283831

(1) Period-end balance sheet percentage changes are annualized.
(2)
See Table 18: Supplemental Non-GAAP Financial Measures/Ratios for additional information on this performance measure/ratio.

(3) Net revenue is net interest income plus non-interest income.
(4) The net overhead ratio is calculated by netting total non-interest expense and total non-interest income, annualizing this amount, and dividing by that period’s average total assets. A lower ratio indicates a higher degree of efficiency.
(5) Excludes mortgage loans held-for-sale.

Certain returns, yields, performance ratios, or quarterly growth rates are “annualized” in this presentation to represent an annual time period. This is done for analytical purposes to better discern, for decision-making purposes, underlying performance trends when compared to full-year or year-over-year amounts. For example, a 5% growth rate for a quarter would represent an annualized 20% growth rate. Additional supplemental financial information showing quarterly trends can be found on the Company’s website at www.wintrust.com by choosing “Financial Reports” under the “Investor Relations” heading, and then choosing “Financial Highlights.”


WINTRUST FINANCIAL CORPORATION

Selected Financial Highlights

Three Months EndedSix Months Ended
(Dollars in thousands, except per share data)Jun 30,
2025
Mar 31,
2025
Dec 31,
2024
Sep 30,
2024
Jun 30,
2024
Jun 30,
2025
Jun 30,
2024
Selected Financial Condition Data (at end of period):
Total assets$68,983,318$65,870,066$64,879,668$63,788,424$59,781,516
Total loans (1)51,041,67948,708,39048,055,03747,067,44744,675,531
Total deposits55,816,81153,570,03852,512,34951,404,96648,049,026
Total shareholders’ equity7,225,6966,600,5376,344,2976,399,7145,536,628
Selected Statements of Income Data:
Net interest income$546,694$526,474$525,148$502,583$470,610$1,073,168$934,804
Net revenue (2)670,783643,108638,599615,730591,7571,313,8911,196,531
Net income195,527189,039185,362170,001152,388384,566339,682
Pre-tax income, excluding provision for credit losses (non-GAAP) (3)289,322277,018270,060255,043251,404566,340523,033
Net income per common share – Basic2.822.732.682.512.355.555.28
Net income per common share – Diluted2.782.692.632.472.325.475.21
Cash dividends declared per common share0.500.500.450.450.451.000.90
Selected Financial Ratios and Other Data:
Performance Ratios:
Net interest margin3.52%3.54%3.49%3.49%3.50%3.53%3.53%
Net interest margin – fully taxable-equivalent (non-GAAP) (3)3.543.563.513.513.523.553.56
Non-interest income to average assets0.760.740.710.740.850.750.93
Non-interest expense to average assets2.322.322.312.362.382.322.40
Net overhead ratio (4)1.571.581.601.621.531.571.46
Return on average assets1.191.201.161.111.071.191.21
Return on average common equity12.0712.2111.8211.6311.6112.1413.01
Return on average tangible common equity (non-GAAP) (3)14.4414.7214.2913.9213.4914.5715.12
Average total assets$65,840,345$64,107,042$63,594,105$60,915,283$57,493,184$64,978,481$56,547,939
Average total shareholders’ equity6,862,0406,460,9416,418,4035,990,4295,450,1736,662,5985,445,315
Average loans to average deposits ratio93.0%92.3%91.9%93.8%95.1%92.7%94.8%
Period-end loans to deposits ratio91.490.991.591.693.0
Common Share Data at end of period:
Market price per common share$123.98$112.46$124.71$108.53$98.56
Book value per common share95.4392.4789.2190.0682.97
Tangible book value per common share (non-GAAP) (3)81.8678.8375.3976.1572.01
Common shares outstanding66,937,73266,919,32566,495,22766,481,54361,760,139
Other Data at end of period:
Common equity to assets ratio9.3%9.4%9.1%9.4%8.6%
Tangible common equity ratio (non-GAAP) (3)8.08.17.88.17.5
Tier 1 leverage ratio (5)10.29.69.49.69.3
Risk-based capital ratios:
Tier 1 capital ratio (5)11.410.810.710.610.3
Common equity tier 1 capital ratio (5)10.010.19.99.89.5
Total capital ratio (5)12.912.512.312.212.1
Allowance for credit losses (6)$457,461$448,387$437,060$436,193$437,560
Allowance for loan and unfunded lending-related commitment losses to total loans0.90%0.92%0.91%0.93%0.98%
Number of:
Bank subsidiaries1616161615
Banking offices208208205203177

(1) Excludes mortgage loans held-for-sale.
(2) Net revenue is net interest income plus non-interest income.
(3) See Table 18: Supplemental Non-GAAP Financial Measures/Ratios for additional information on this performance measure/ratio.
(4) The net overhead ratio is calculated by netting total non-interest expense and total non-interest income, annualizing this amount, and dividing by that period’s average total assets. A lower ratio indicates a higher degree of efficiency.
(5) Capital ratios for current quarter-end are estimated.
(6) The allowance for credit losses includes the allowance for loan losses, the allowance for unfunded lending-related commitments and the allowance for held-to-maturity securities losses.

WINTRUST FINANCIAL CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CONDITION

(Unaudited)(Unaudited)(Unaudited)(Unaudited)
Jun 30,Mar 31,Dec 31,Sep 30,Jun 30,
(In thousands)20252025202420242024
Assets
Cash and due from banks$695,501$616,216$452,017$725,465$415,462
Federal funds sold and securities purchased under resale agreements63636,5195,66362
Interest-bearing deposits with banks4,569,6184,238,2374,409,7533,648,1172,824,314
Available-for-sale securities, at fair value4,885,7154,220,3054,141,4823,912,2324,329,957
Held-to-maturity securities, at amortized cost3,502,1863,564,4903,613,2633,677,4203,755,924
Trading account securities4,0723,4724,134
Equity securities with readily determinable fair value273,722270,442215,412125,310112,173
Federal Home Loan Bank and Federal Reserve Bank stock282,087281,893281,407266,908256,495
Brokerage customer receivables18,10216,66213,682
Mortgage loans held-for-sale, at fair value299,606316,804331,261461,067411,851
Loans, net of unearned income51,041,67948,708,39048,055,03747,067,44744,675,531
Allowance for loan losses(391,654)(378,207)(364,017)(360,279)(363,719)
Net loans50,650,02548,330,18347,691,02046,707,16844,311,812
Premises, software and equipment, net776,324776,679779,130772,002722,295
Lease investments, net289,768280,472278,264270,171275,459
Accrued interest receivable and other assets1,610,0251,598,2551,739,3341,721,0901,671,334
Receivable on unsettled securities sales240,039463,023551,031
Goodwill798,144796,932796,942800,780655,955
Other acquisition-related intangible assets110,495116,072121,690123,86620,607
Total assets$68,983,318$65,870,066$64,879,668$63,788,424$59,781,516
Liabilities and Shareholders’ Equity
Deposits:
Non-interest-bearing$10,877,166$11,201,859$11,410,018$10,739,132$10,031,440
Interest-bearing44,939,64542,368,17941,102,33140,665,83438,017,586
Total deposits55,816,81153,570,03852,512,34951,404,96648,049,026
Federal Home Loan Bank advances3,151,3093,151,3093,151,3093,171,3093,176,309
Other borrowings625,392529,269534,803647,043606,579
Subordinated notes298,458298,360298,283298,188298,113
Junior subordinated debentures253,566253,566253,566253,566253,566
Payable on unsettled securities sales39,105
Accrued interest payable and other liabilities1,572,9811,466,9871,785,0611,613,6381,861,295
Total liabilities61,757,62259,269,52958,535,37157,388,71054,244,888
Shareholders’ Equity:
Preferred stock837,500412,500412,500412,500412,500
Common stock67,02567,00766,56066,54661,825
Surplus2,495,6372,494,3472,482,5612,470,2281,964,645
Treasury stock(9,156)(9,156)(6,153)(6,098)(5,760)
Retained earnings4,200,9234,045,8543,897,1643,748,7153,615,616
Accumulated other comprehensive loss(366,233)(410,015)(508,335)(292,177)(512,198)
Total shareholders’ equity7,225,6966,600,5376,344,2976,399,7145,536,628
Total liabilities and shareholders’ equity$68,983,318$65,870,066$64,879,668$63,788,424$59,781,516


WINTRUST FINANCIAL CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED)

Three Months EndedSix Months Ended
(Dollars in thousands, except per share data)Jun 30,
2025
Mar 31,
2025
Dec 31,
2024
Sep 30,
2024
Jun 30,
2024
Jun 30,
2025
Jun 30,
2024
Interest income
Interest and fees on loans$797,997$768,362$789,038$794,163$749,812$1,566,359$1,460,153
Mortgage loans held-for-sale4,8724,2465,6236,2335,4349,1189,580
Interest-bearing deposits with banks34,31736,76646,25632,60819,73171,08336,389
Federal funds sold and securities purchased under resale agreements276179532771745536
Investment securities78,05372,01667,06669,59269,779150,069139,457
Trading account securities11611131131
Federal Home Loan Bank and Federal Reserve Bank stock5,3935,3075,1575,4514,97410,7009,452
Brokerage customer receivables7830226921978394
Total interest income920,908886,965913,501908,604849,9791,807,8731,655,492
Interest expense
Interest on deposits333,470320,233346,388362,019335,703653,703635,235
Interest on Federal Home Loan Bank advances25,72425,44126,05026,25424,79751,16546,845
Interest on other borrowings6,9576,7927,5199,0138,70013,74917,948
Interest on subordinated notes3,7353,7143,7333,7125,1857,44910,672
Interest on junior subordinated debentures4,3284,3114,6635,0234,9848,6399,988
Total interest expense374,214360,491388,353406,021379,369734,705720,688
Net interest income546,694526,474525,148502,583470,6101,073,168934,804
Provision for credit losses22,23423,96316,97922,33440,06146,19761,734
Net interest income after provision for credit losses524,460502,511508,169480,249430,5491,026,971873,070
Non-interest income
Wealth management36,82134,04238,77537,22435,41370,86370,228
Mortgage banking23,17020,52920,45215,97429,12443,69956,787
Service charges on deposit accounts19,50219,36218,86416,43015,54638,86430,357
Gains (losses) on investment securities, net6503,196(2,835)3,189(4,282)3,846(2,956)
Fees from covered call options5,6243,4462,3059882,0569,0706,903
Trading gains (losses), net151(64)(113)(130)7087747
Operating lease income, net15,16615,28715,32715,33513,93830,45328,048
Other23,00520,83620,67624,13729,28243,84171,613
Total non-interest income124,089116,634113,451113,147121,147240,723261,727
Non-interest expense
Salaries and employee benefits219,541211,526212,133211,261198,541431,067393,714
Software and equipment36,52234,71734,25831,57429,23171,23956,962
Operating lease equipment10,75710,47110,26310,51810,83421,22821,517
Occupancy, net20,22820,77820,59719,94519,58541,00638,671
Data processing12,11011,27410,9579,9849,50323,38418,795
Advertising and marketing18,76112,27213,09718,23917,43631,03330,476
Professional fees9,2439,04411,3349,7839,96718,28719,520
Amortization of other acquisition-related intangible assets5,5805,6185,7734,0421,12211,1982,280
FDIC insurance10,97110,92610,64010,51210,42921,89724,966
Other real estate owned (“OREO”) expenses, net505643397(938)(259)1,148133
Other37,24338,82139,09035,76733,96476,06466,464
Total non-interest expense381,461366,090368,539360,687340,353747,551673,498
Income before taxes267,088253,055253,081232,709211,343520,143461,299
Income tax expense71,56164,01667,71962,70858,955135,577121,617
Net income$195,527$189,039$185,362$170,001$152,388$384,566$339,682
Preferred stock dividends6,9916,9916,9916,9916,99113,98213,982
Net income applicable to common shares$188,536$182,048$178,371$163,010$145,397$370,584$325,700
Net income per common share - Basic$2.82$2.73$2.68$2.51$2.35$5.55$5.28
Net income per common share - Diluted$2.78$2.69$2.63$2.47$2.32$5.47$5.21
Cash dividends declared per common share$0.50$0.50$0.45$0.45$0.45$1.00$0.90
Weighted average common shares outstanding66,93166,72666,49164,88861,83966,82961,660
Dilutive potential common shares8889231,2331,053926903901
Average common shares and dilutive common shares67,81967,64967,72465,94162,76567,73262,561


TABLE 1: LOAN PORTFOLIO MIX AND GROWTH RATES

% Growth From (1)
(Dollars in thousands)Jun 30,
2025
Mar 31,
2025
Dec 31,
2024
Sep 30,
2024
Jun 30,
2024
Mar 31,
2025 (2)
Jun 30,
2024
Balance:
Mortgage loans held-for-sale, excluding early buy-out exercised loans guaranteed by U.S. government agencies$192,633$181,580$189,774$314,693$281,10324 %(31)%
Mortgage loans held-for-sale, early buy-out exercised loans guaranteed by U.S. government agencies106,973135,224141,487146,374130,748(84)(18)
Total mortgage loans held-for-sale$299,606$316,804$331,261$461,067$411,851(22)%(27)%
Core loans:
Commercial
Commercial and industrial$7,028,247$6,871,206$6,867,422$6,774,683$6,236,2909 %13 %
Asset-based lending1,663,6931,701,9621,611,0011,709,6851,465,867(9)13
Municipal771,785798,646826,653827,125747,357(13)3
Leases2,757,3312,680,9432,537,3252,443,7212,439,1281113
Commercial real estate
Residential construction59,02755,84948,61773,08855,019237
Commercial construction2,165,2632,086,7972,065,7751,984,2401,866,7011516
Land304,827306,235319,689346,362338,831(2)(10)
Office1,601,2081,641,5551,656,1091,675,2861,585,312(10)1
Industrial2,824,8892,677,5552,628,5762,527,9322,307,4552222
Retail1,452,3511,402,8371,374,6551,404,5861,365,753146
Multi-family3,200,5783,091,3143,125,5053,193,3392,988,940147
Mixed use and other1,683,8671,652,7591,685,0181,588,5841,439,186817
Home equity466,815455,683445,028427,043356,3131031
Residential real estate
Residential real estate loans for investment3,814,7153,561,4173,456,0093,252,6492,933,1572930
Residential mortgage loans, early buy-out eligible loans guaranteed by U.S. government agencies80,80086,952114,98592,35588,503(28)(9)
Residential mortgage loans, early buy-out exercised loans guaranteed by U.S. government agencies53,26736,79041,77143,03445,675NM17
Total core loans$29,928,663$29,108,500$28,804,138$28,363,712$26,259,48711 %14 %
Niche loans:
Commercial
Franchise$1,286,265$1,262,555$1,268,521$1,191,686$1,150,4608 %12 %
Mortgage warehouse lines of credit1,232,5301,019,543893,854750,462593,51984NM
Community Advantage - homeowners association526,595525,492525,446501,645491,72217
Insurance agency lending1,120,9851,070,9791,044,3291,048,6861,030,119199
Premium Finance receivables
U.S. property & casualty insurance7,378,3406,486,6636,447,6256,253,2716,142,6545520
Canada property & casualty insurance944,836753,199824,417878,410958,099NM(1)
Life insurance8,506,9608,365,1408,147,1457,996,8997,962,11577
Consumer and other116,505116,31999,56282,67687,356133
Total niche loans$21,113,016$19,599,890$19,250,899$18,703,735$18,416,04431 %15 %
Total loans, net of unearned income$51,041,679$48,708,390$48,055,037$47,067,447$44,675,53119 %14 %

(1) NM - Not Meaningful.
(2) Annualized.


TABLE 2: DEPOSIT PORTFOLIO MIX AND GROWTH RATES

% Growth From
(Dollars in thousands)Jun 30,
2025
Mar 31,
2025
Dec 31,
2024
Sep 30,
2024
Jun 30,
2024
Mar 31,
2025 (1)
Jun 30,
2024
Balance:
Non-interest-bearing$10,877,166$11,201,859$11,410,018$10,739,132$10,031,440(12)%8 %
NOW and interest-bearing demand deposits6,795,7256,340,1685,865,5465,466,9325,053,9092934
Wealth management deposits (2)1,595,7641,408,7901,469,0641,303,3541,490,711537
Money market19,556,04118,074,73317,975,19117,713,72616,320,0173320
Savings6,659,4196,576,2516,372,4996,183,2495,882,179513
Time certificates of deposit10,332,6969,968,2379,420,0319,998,5739,270,7701511
Total deposits$55,816,811$53,570,038$52,512,349$51,404,966$48,049,02617 %16 %
Mix:
Non-interest-bearing19%21%22%21%21%
NOW and interest-bearing demand deposits1212111111
Wealth management deposits (2)33333
Money market3534343434
Savings1212121212
Time certificates of deposit1918181919
Total deposits100%100%100%100%100%

(1) Annualized.
(2) Represents deposit balances of the Company’s subsidiary banks from brokerage customers of Wintrust Investments, Chicago Deferred Exchange Company, LLC (“CDEC”), and trust and asset management customers of the Company.


TABLE 3: TIME CERTIFICATES OF DEPOSIT MATURITY/RE-PRICING ANALYSIS
As of June 30, 2025

(Dollars in thousands)Total Time
Certificates of
Deposit
Weighted-Average
Rate of Maturing
Time Certificates
of Deposit
1-3 months$2,486,6943.92%
4-6 months4,464,1263.80
7-9 months2,187,3653.74
10-12 months771,1143.64
13-18 months262,0943.41
19-24 months99,6892.92
24+ months61,6142.36
Total$10,332,6963.78%


TABLE 4: QUARTERLY AVERAGE BALANCES

Average Balance for three months ended,
Jun 30,Mar 31,Dec 31,Sep 30,Jun 30,
(In thousands)20252025202420242024
Interest-bearing deposits with banks, securities purchased under resale agreements and cash equivalents (1)$3,308,199$3,520,048$3,934,016$2,413,728$1,485,481
Investment securities (2)8,801,5608,409,7358,090,2718,276,5768,203,764
FHLB and FRB stock (3)282,001281,702271,825263,707253,614
Liquidity management assets (4)$12,391,760$12,211,485$12,296,112$10,954,011$9,942,859
Other earning assets (4) (5)13,14020,52817,54215,257
Mortgage loans held-for-sale310,534286,710378,707376,251347,236
Loans, net of unearned income (4) (6)49,517,63547,833,38047,153,01445,920,58643,819,354
Total earning assets (4)$62,219,929$60,344,715$59,848,361$57,268,390$54,124,706
Allowance for loan and investment security losses(398,685)(375,371)(367,238)(383,736)(360,504)
Cash and due from banks478,707476,423470,033467,333434,916
Other assets3,540,3943,661,2753,642,9493,563,2963,294,066
Total assets$65,840,345$64,107,042$63,594,105$60,915,283$57,493,184
NOW and interest-bearing demand deposits$6,423,050$6,046,189$5,601,672$5,174,673$4,985,306
Wealth management deposits1,552,9891,574,4801,430,1631,362,7471,531,865
Money market accounts18,184,75417,581,14117,579,39516,436,11115,272,126
Savings accounts6,578,6986,479,4446,288,7276,096,7465,878,844
Time deposits9,841,7029,406,1269,702,9489,598,1098,546,172
Interest-bearing deposits$42,581,193$41,087,380$40,602,905$38,668,386$36,214,313
FHLB advances (3)3,151,3103,151,3093,160,6583,178,9733,096,920
Other borrowings593,657582,139577,786622,792587,262
Subordinated notes298,398298,306298,225298,135410,331
Junior subordinated debentures253,566253,566253,566253,566253,566
Total interest-bearing liabilities$46,878,124$45,372,700$44,893,140$43,021,852$40,562,392
Non-interest-bearing deposits10,643,79810,732,15610,718,73810,271,6139,879,134
Other liabilities1,456,3831,541,2451,563,8241,631,3891,601,485
Equity6,862,0406,460,9416,418,4035,990,4295,450,173
Total liabilities and shareholders’ equity$65,840,345$64,107,042$63,594,105$60,915,283$57,493,184
Net free funds/contribution (6)$15,341,805$14,972,015$14,955,221$14,246,538$13,562,314

(1) Includes interest-bearing deposits from banks and securities purchased under resale agreements with original maturities of greater than three months. Cash equivalents include federal funds sold and securities purchased under resale agreements with original maturities of three months or less.
(2) Investment securities includes investment securities classified as available-for-sale and held-to-maturity, and equity securities with readily determinable fair values. Equity securities without readily determinable fair values are included within other assets.
(3) Federal Home Loan Bank (“FHLB”) and Federal Reserve Bank (“FRB”)
(4) See Table 18: Supplemental Non-GAAP Financial Measures/Ratios for additional information on this performance measure/ratio.
(5) Other earning assets include brokerage customer receivables and trading account securities.
(6) Loans, net of unearned income, include non-accrual loans.
(7) Net free funds are the difference between total average earning assets and total average interest-bearing liabilities. The estimated contribution to net interest margin from net free funds is calculated using the rate paid for total interest-bearing liabilities.

TABLE 5: QUARTERLY NET INTEREST INCOME

Net Interest Income for three months ended,
Jun 30,Mar 31,Dec 31,Sep 30,Jun 30,
(In thousands)20252025202420242024
Interest income:
Interest-bearing deposits with banks, securities purchased under resale agreements and cash equivalents$34,593$36,945$46,308$32,885$19,748
Investment securities78,73372,70667,78370,26070,346
FHLB and FRB stock (1)5,3935,3075,1575,4514,974
Liquidity management assets (2)$118,719$114,958$119,248$108,596$95,068
Other earning assets (2)92310282235
Mortgage loans held-for-sale4,8724,2465,6236,2335,434
Loans, net of unearned income (2)800,197770,568791,390796,637752,117
Total interest income$923,788$889,864$916,571$911,748$852,854
Interest expense:
NOW and interest-bearing demand deposits$37,517$33,600$31,695$30,971$32,719
Wealth management deposits8,1828,6069,41210,15810,294
Money market accounts155,890146,374159,945167,382155,100
Savings accounts37,63735,92338,40242,89241,063
Time deposits94,24495,730106,934110,61696,527
Interest-bearing deposits$333,470$320,233$346,388$362,019$335,703
FHLB advances (1)25,72425,44126,05026,25424,797
Other borrowings6,9576,7927,5199,0138,700
Subordinated notes3,7353,7143,7333,7125,185
Junior subordinated debentures4,3284,3114,6635,0234,984
Total interest expense$374,214$360,491$388,353$406,021$379,369
Less: Fully taxable-equivalent adjustment(2,880)(2,899)(3,070)(3,144)(2,875)
Net interest income (GAAP) (3) 546,694526,474525,148502,583470,610
Fully taxable-equivalent adjustment2,8802,8993,0703,1442,875
Net interest income, fully taxable-equivalent (non-GAAP) (3) $549,574$529,373$528,218$505,727$473,485

(1) Federal Home Loan Bank (“FHLB”) and Federal Reserve Bank (“FRB”)
(2) Interest income on tax-advantaged loans, trading securities and investment securities reflects a taxable-equivalent adjustment based on the marginal federal corporate tax rate in effect as of the applicable period.
(3) See Table 18: Supplemental Non-GAAP Financial Measures/Ratios for additional information on this performance measure/ratio.

TABLE 6: QUARTERLY NET INTEREST MARGIN

Net Interest Margin for three months ended,
Jun 30,
2025
Mar 31,
2025
Dec 31,
2024
Sep 30,
2024
Jun 30,
2024
Yield earned on:
Interest-bearing deposits with banks, securities purchased under resale agreements and cash equivalents4.19%4.26%4.68%5.42%5.35%
Investment securities3.593.513.333.383.45
FHLB and FRB stock (1)7.677.647.558.227.89
Liquidity management assets3.84%3.82%3.86%3.94%3.85%
Other earning assets2.846.016.386.23
Mortgage loans held-for-sale6.296.015.916.596.29
Loans, net of unearned income6.486.536.686.906.90
Total earning assets5.96%5.98%6.09%6.33%6.34%
Rate paid on:
NOW and interest-bearing demand deposits2.34%2.25%2.25%2.38%2.64%
Wealth management deposits2.112.222.622.972.70
Money market accounts3.443.383.624.054.08
Savings accounts2.292.252.432.802.81
Time deposits3.844.134.384.584.54
Interest-bearing deposits3.14%3.16%3.39%3.72%3.73%
FHLB advances3.273.273.283.293.22
Other borrowings4.704.735.185.765.96
Subordinated notes5.025.054.984.955.08
Junior subordinated debentures6.856.907.327.887.91
Total interest-bearing liabilities3.20%3.22%3.44%3.75%3.76%
Interest rate spread (2) (3)2.76%2.76%2.65%2.58%2.58%
Less: Fully taxable-equivalent adjustment(0.02)(0.02)(0.02)(0.02)(0.02)
Net free funds/contribution (4)0.780.800.860.930.94
Net interest margin (GAAP) (3)3.52%3.54%3.49%3.49%3.50%
Fully taxable-equivalent adjustment0.020.020.020.020.02
Net interest margin, fully taxable-equivalent (non-GAAP) (3)3.54%3.56%3.51%3.51%3.52%

(1) Federal Home Loan Bank (“FHLB”) and Federal Reserve Bank (“FRB”)
(2) Interest rate spread is the difference between the yield earned on earning assets and the rate paid on interest-bearing liabilities.
(3) See Table 18: Supplemental Non-GAAP Financial Measures/Ratios for additional information on this performance measure/ratio.
(4) Net free funds are the difference between total average earning assets and total average interest-bearing liabilities. The estimated contribution to net interest margin from net free funds is calculated using the rate paid for total interest-bearing liabilities.


TABLE 7: YEAR-TO-DATE AVERAGE BALANCES, AND NET INTEREST INCOME AND MARGIN

Average Balance
for six months ended,
Interest
for six months ended,
Yield/Rate
for six months ended,
(Dollars in thousands)Jun 30,
2025
Jun 30,
2024
Jun 30,
2025
Jun 30,
2024
Jun 30,
2025
Jun 30,
2024
Interest-bearing deposits with banks, securities purchased under resale agreements and cash equivalents (1)$3,413,538$1,369,906$71,538$36,4254.23%5.35%
Investment securities (2)8,606,7308,276,780151,439140,5743.553.42
FHLB and FRB stock (3)281,853242,13110,7009,4527.667.85
Liquidity management assets (4) (5)$12,302,121$9,888,817$233,677$186,4513.83%3.79%
Other earning assets (4) (5) (6)6,53315,169924332.845.74
Mortgage loans held-for-sale298,688318,7569,1189,5806.166.04
Loans, net of unearned income (4) (5) (7)48,680,16042,974,6231,570,7651,464,7046.516.85
Total earning assets (5)$61,287,502$53,197,365$1,813,652$1,661,1685.97%6.28%
Allowance for loan and investment security losses(387,092)(361,119)
Cash and due from banks477,571442,591
Other assets3,600,5003,269,102
Total assets$64,978,481$56,547,939
NOW and interest-bearing demand deposits$6,235,661$5,332,786$71,117$67,6152.30%2.55%
Wealth management deposits1,563,6751,521,03416,78820,7552.172.74
Money market accounts17,884,61514,873,309302,264293,0843.413.96
Savings accounts6,529,3455,835,48173,56080,1342.272.76
Time deposits9,625,1177,847,314189,974173,6473.984.45
Interest-bearing deposits$41,838,413$35,409,924$653,703$635,2353.15%3.61%
Federal Home Loan Bank advances3,151,3102,912,88451,16546,8453.273.23
Other borrowings587,930607,48713,74917,9484.725.94
Subordinated notes298,353424,1127,44910,6725.045.06
Junior subordinated debentures253,566253,5668,6399,9886.877.92
Total interest-bearing liabilities$46,129,572$39,607,973$734,705$720,6883.21%3.66%
Non-interest-bearing deposits10,687,7339,925,890
Other liabilities1,498,5781,568,761
Equity6,662,5985,445,315
Total liabilities and shareholders’ equity$64,978,481$56,547,939
Interest rate spread (5) (8)2.76%2.62%
Less: Fully taxable-equivalent adjustment(5,779)(5,676)(0.02)(0.03)
Net free funds/contribution (9)$15,157,930$13,589,3920.790.94
Net interest income/margin (GAAP) (5)$1,073,168$934,8043.53%3.53%
Fully taxable-equivalent adjustment5,7795,6760.020.03
Net interest income/margin, fully taxable-equivalent (non-GAAP) (4) $1,078,947$940,4803.55%3.56%

(1) Includes interest-bearing deposits from banks and securities purchased under resale agreements with original maturities of greater than three months. Cash equivalents include federal funds sold and securities purchased under resale agreements with original maturities of three months or less.
(2) Investment securities includes investment securities classified as available-for-sale and held-to-maturity, and equity securities with readily determinable fair values. Equity securities without readily determinable fair values are included within other assets.
(3) Federal Home Loan Bank (“FHLB”) and Federal Reserve Bank (“FRB”)
(4) Interest income on tax-advantaged loans, trading securities and investment securities reflects a taxable-equivalent adjustment based on the marginal federal corporate tax rate in effect as of the applicable period.
(5) See Table 18: Supplemental Non-GAAP Financial Measures/Ratios for additional information on this performance measure/ratio.
(6) Other earning assets include brokerage customer receivables and trading account securities.
(7) Loans, net of unearned income, include non-accrual loans.
(8) Interest rate spread is the difference between the yield earned on earning assets and the rate paid on interest-bearing liabilities.
(9) Net free funds are the difference between total average earning assets and total average interest-bearing liabilities. The estimated contribution to net interest margin from net free funds is calculated using the rate paid for total interest-bearing liabilities.


TABLE 8
: INTEREST RATE SENSITIVITY

As an ongoing part of its financial strategy, the Company attempts to manage the impact of fluctuations in market interest rates on net interest income. Management measures its exposure to changes in interest rates by modeling many different interest rate scenarios.

The following interest rate scenarios display the percentage change in net interest income over a one-year time horizon assuming increases and decreases of 100 and 200 basis points as compared to projected net interest income in a scenario with no assumed rate changes. The Static Shock Scenario results incorporate actual cash flows and repricing characteristics for balance sheet instruments following an instantaneous, parallel change in market rates based upon a static (i.e. no growth or constant) balance sheet. Conversely, the Ramp Scenario results incorporate management’s projections of future volume and pricing of each of the product lines following a gradual, parallel change in market rates over twelve months. Actual results may differ from these simulated results due to timing, magnitude, and frequency of interest rate changes as well as changes in market conditions and management strategies. The interest rate sensitivity for both the Static Shock and Ramp Scenario is as follows:

Static Shock Scenario+200 Basis Points+100 Basis Points-100 Basis Points-200 Basis Points
Jun 30, 2025(1.5)%(0.4)%(0.2)%(1.2)%
Mar 31, 2025(1.8)(0.6)(0.2)(1.2)
Dec 31, 2024(1.6)(0.6)(0.3)(1.5)
Sep 30, 20241.21.10.4(0.9)
Jun 30, 20241.51.00.6(0.0)
Ramp Scenario+200 Basis Points+100 Basis Points-100 Basis Points-200 Basis Points
Jun 30, 20250.0 %0.0 %(0.1)%(0.4)%
Mar 31, 20250.20.2(0.1)(0.5)
Dec 31, 2024(0.2)(0.0)0.0(0.3)
Sep 30, 20241.61.20.70.5
Jun 30, 20241.21.00.91.0

As shown above, the magnitude of potential changes in net interest income in various interest rate scenarios has continued to remain relatively neutral. As the current interest rate cycle progressed, management took action to reposition its sensitivity to interest rates. To this end, management has executed various derivative instruments including collars and receive fixed swaps to hedge variable rate loan exposures and originated a higher percentage of its loan originations in longer-term fixed-rate loans. The Company will continue to monitor current and projected interest rates and may execute additional derivatives to mitigate potential fluctuations in the net interest margin in future periods.

TABLE 9: MATURITIES AND SENSITIVITIES TO CHANGES IN INTEREST RATES

Loans repricing or contractual maturity period
As of June 30, 2025One year or
less
From one to
five years
From five to
fifteen years
After fifteen
years
Total
(In thousands)
Commercial
Fixed rate$429,173$3,756,650$2,117,493$14,925$6,318,241
Variable rate10,068,0791,11110,069,190
Total commercial$10,497,252$3,757,761$2,117,493$14,925$16,387,431
Commercial real estate
Fixed rate$712,348$2,732,428$369,615$70,471$3,884,862
Variable rate9,396,30610,775679,407,148
Total commercial real estate$10,108,654$2,743,203$369,682$70,471$13,292,010
Home equity
Fixed rate$9,626$773$$15$10,414
Variable rate456,401456,401
Total home equity$466,027$773$$15$466,815
Residential real estate
Fixed rate$15,271$4,318$72,630$1,056,508$1,148,727
Variable rate108,431699,8751,991,7492,800,055
Total residential real estate$123,702$704,193$2,064,379$1,056,508$3,948,782
Premium finance receivables - property & casualty
Fixed rate$8,220,850$102,326$$$8,323,176
Variable rate
Total premium finance receivables - property & casualty$8,220,850$102,326$$$8,323,176
Premium finance receivables - life insurance
Fixed rate$319,732$169,958$4,000$$493,690
Variable rate8,013,2708,013,270
Total premium finance receivables - life insurance$8,333,002$169,958$4,000$$8,506,960
Consumer and other
Fixed rate$36,771$8,483$1,070$859$47,183
Variable rate69,32269,322
Total consumer and other$106,093$8,483$1,070$859$116,505
Total per category
Fixed rate$9,743,771$6,774,936$2,564,808$1,142,778$20,226,293
Variable rate28,111,809711,7611,991,81630,815,386
Total loans, net of unearned income$37,855,580$7,486,697$4,556,624$1,142,778$51,041,679
Less: Existing cash flow hedging derivatives (1)(6,700,000)
Total loans repricing or maturing in one year or less, adjusted for cash flow hedging activity$31,155,580
Variable Rate Loan Pricing by Index:
SOFR tenors (2)$19,459,501
12- month CMT (3)6,906,397
Prime3,243,035
Fed Funds786,924
Other U.S. Treasury tenors187,736
Other231,793
Total variable rate$30,815,386

(1) Excludes cash flow hedges with future effective starting dates.
(2) SOFR - Secured Overnight Financing Rate.
(3) CMT - Constant Maturity Treasury Rate.

Graph available at the following link: http://ml.globenewswire.com/Resource/Download/cf816bf1-1915-431d-8262-97011dc0227d

Source: Bloomberg

As noted in the table on the previous page, the majority of the Company’s portfolio is tied to SOFR and CMT indices which, as shown in the table above, do not mirror the same changes as the Prime rate, which has historically moved when the Federal Reserve raises or lowers interest rates. Specifically, the Company has variable rate loans of $16.7 billion tied to one-month SOFR and $6.9 billion tied to twelve-month CMT. The above chart shows:

Basis Point (bp) Change in
1-month
SOFR
12- month
CMT
Prime
Second Quarter 2025bps(7)bpsbps
First Quarter 2025(1)(13)
Fourth Quarter 2024(52)18(50)
third quarter 2024(49)(111)(50)
Second Quarter 202416


TABLE 10: ALLOWANCE FOR CREDIT LOSSES

Three Months EndedSix Months Ended
Jun 30,Mar 31,Dec 31,Sep 30,Jun 30,Jun 30,Jun 30,
(Dollars in thousands)2025202520242024202420252024
Allowance for credit losses at beginning of period$448,387$437,060$436,193$437,560$427,504$437,060$427,612
Provision for credit losses - Other22,23423,96316,9796,78740,06146,19761,734
Provision for credit losses - Day 1 on non-PCD assets acquired during the period15,547
Initial allowance for credit losses recognized on PCD assets acquired during the period3,004
Other adjustments1804(187)30(19)184(50)
Charge-offs:
Commercial6,1489,7225,09022,9759,58415,87020,799
Commercial real estate5,7114541,0379515,5266,16520,995
Home equity11111174
Residential real estate1142361
Premium finance receivables - property & casualty6,3467,11413,3017,7909,48613,46016,424
Premium finance receivables - life insurance12412
Consumer and other179147189154137326244
Total charge-offs18,49517,44919,73131,01834,75635,94458,597
Recoveries:
Commercial1,7469297756499502,6751,429
Commercial real estate1012172309022121
Home equity302161941013524664
Residential real estate213605813810
Premium finance receivables - property & casualty3,3353,4872,6463,4363,6586,8225,177
Premium finance receivables - life insurance41513
Consumer and other32291921246147
Total recoveries5,1554,8093,8064,2834,7709,9646,861
Net charge-offs(13,340)(12,640)(15,925)(26,735)(29,986)(25,980)(51,736)
Allowance for credit losses at period end$457,461$448,387$437,060$436,193$437,560$457,461$437,560
Annualized net charge-offs (recoveries) by category as a percentage of its own respective category’s average:
Commercial0.11%0.23%0.11%0.61%0.25%0.17%0.29%
Commercial real estate0.170.010.030.000.530.100.36
Home equity0.07(0.20)(0.18)(0.10)(0.04)(0.06)0.01
Residential real estate(0.00)(0.02)0.010.000.00(0.01)0.00
Premium finance receivables - property & casualty0.160.200.590.240.330.180.33
Premium finance receivables - life insurance0.00(0.00)(0.00)0.00(0.00)
Consumer and other0.440.450.630.630.560.440.49
Total loans, net of unearned income0.11%0.11%0.13%0.23%0.28%0.110.24%
Loans at period end$51,041,679$48,708,390$48,055,037$47,067,447$44,675,531
Allowance for loan losses as a percentage of loans at period end0.77%0.78%0.76%0.77%0.81%
Allowance for loan and unfunded lending-related commitment losses as a percentage of loans at period end0.900.920.910.930.98

PCD - Purchase Credit Deteriorated


TABLE 11
: ALLOWANCE AND PROVISION FOR CREDIT LOSSES BY COMPONENT

Three Months EndedSix Months Ended
Jun 30,Mar 31,Dec 31,Sep 30,Jun 30,Jun 30,Jun 30,
(In thousands)2025202520242024202420252024
Provision for loan losses - Other$26,607$26,826$19,852$6,782$45,111$53,433$71,270
Provision for credit losses - Day 1 on non-PCD assets acquired during the period15,547
Provision for unfunded lending-related commitments losses - Other(4,325)(2,852)(2,851)17(5,212)(7,177)(9,680)
Provision for held-to-maturity securities losses(48)(11)(22)(12)162(59)144
Provision for credit losses$22,234$23,963$16,979$22,334$40,061$46,197$61,734
Allowance for loan losses$391,654$378,207$364,017$360,279$363,719
Allowance for unfunded lending-related commitments losses65,40969,73472,58675,43573,350
Allowance for loan losses and unfunded lending-related commitments losses457,063447,941436,603435,714437,069
Allowance for held-to-maturity securities losses398446457479491
Allowance for credit losses$457,461$448,387$437,060$436,193$437,560

PCD - Purchase Credit Deteriorated


TABLE 12
: ALLOWANCE BY LOAN PORTFOLIO

The table below summarizes the calculation of allowance for loan losses and allowance for unfunded lending-related commitments losses for the Company’s loan portfolios as well as core and niche portfolios, as of June 30, 2025, March 31, 2025 and December 31, 2024.

As of Jun 30, 2025As of Mar 31, 2025As of Dec 31, 2024
(Dollars in thousands)Recorded
Investment
Calculated
Allowance
% of its
category’s balance
Recorded
Investment
Calculated
Allowance
% of its
category’s balance
Recorded
Investment
Calculated
Allowance
% of its
category’s balance
Commercial$16,387,431$194,5681.19%$15,931,326$201,1831.26%$15,574,551$175,8371.13%
Commercial real estate:
Construction and development2,529,11775,9363.002,448,88171,3882.922,434,08187,2363.58
Non-construction10,762,893148,4221.3810,466,020138,6221.3210,469,863135,6201.30
Total commercial real estate$13,292,010$224,3581.69%$12,914,901$210,0101.63%$12,903,944$222,8561.73%
Total commercial and commercial real estate$29,679,441$418,9261.41%$28,846,227$411,1931.43%$28,478,495$398,6931.40%
Home equity466,8159,2211.98455,6839,1392.01445,0288,9432.01
Residential real estate3,948,78211,4550.293,685,15910,6520.293,612,76510,3350.29
Premium finance receivables
Property and casualty insurance8,323,17615,8720.197,239,86215,3100.217,272,04217,1110.24
Life insurance8,506,9607400.018,365,1407290.018,147,1457090.01
Consumer and other116,5058490.73116,3199180.7999,5628120.82
Total loans, net of unearned income$51,041,679$457,0630.90%$48,708,390$447,9410.92%$48,055,037$436,6030.91%
Total core loans (1)$29,928,663$409,8261.37%$29,108,500$397,6641.37%$28,804,138$392,3191.36%
Total niche loans (1)21,113,01647,2370.2219,599,89050,2770.2619,250,89944,2840.23

(1) See Table 1 for additional detail on core and niche loans.


TABLE 13
: LOAN PORTFOLIO AGING

(In thousands)Jun 30, 2025Mar 31, 2025Dec 31, 2024Sep 30, 2024Jun 30, 2024
Loan Balances:
Commercial
Nonaccrual$80,877$70,560$73,490$63,826$51,087
90+ days and still accruing4610420304
60-89 days past due34,85515,24354,84432,56016,485
30-59 days past due45,10397,39792,55146,05736,358
Current16,226,59615,748,08015,353,56215,105,23014,050,228
Total commercial$16,387,431$15,931,326$15,574,551$15,247,693$14,154,462
Commercial real estate
Nonaccrual$32,828$26,187$21,042$42,071$48,289
90+ days and still accruing225
60-89 days past due11,2576,99510,52113,4396,555
30-59 days past due51,17383,65330,76648,34638,065
Current13,196,75212,798,06612,841,61512,689,33611,854,288
Total commercial real estate$13,292,010$12,914,901$12,903,944$12,793,417$11,947,197
Home equity
Nonaccrual$1,780$2,070$1,117$1,122$1,100
90+ days and still accruing
60-89 days past due1389841,2331,035275
30-59 days past due2,9713,4032,1482,5801,229
Current461,926449,226440,530422,306353,709
Total home equity$466,815$455,683$445,028$427,043$356,313
Residential real estate
Early buy-out loans guaranteed by U.S. government agencies (1)$134,067$123,742$156,756$135,389$134,178
Nonaccrual28,04722,52223,76217,95918,198
90+ days and still accruing
60-89 days past due8,9541,3515,7086,3641,977
30-59 days past due3838,94318,9172,160130
Current3,777,6763,498,6013,407,6223,226,1662,912,852
Total residential real estate$3,948,782$3,685,159$3,612,765$3,388,038$3,067,335
Premium finance receivables - property & casualty
Nonaccrual$30,404$29,846$28,797$36,079$32,722
90+ days and still accruing14,35018,08116,03118,23522,427
60-89 days past due25,64119,71719,04218,74029,925
30-59 days past due29,46039,45968,21930,20445,927
Current8,223,3217,132,7597,139,9537,028,4236,969,752
Total Premium finance receivables - property & casualty$8,323,176$7,239,862$7,272,042$7,131,681$7,100,753
Premium finance receivables - life insurance
Nonaccrual$$$6,431$$
90+ days and still accruing3272,962
60-89 days past due11,20210,58772,96310,9024,118
30-59 days past due34,40329,92436,40574,43217,693
Current8,461,0288,321,6678,031,3467,911,5657,940,304
Total Premium finance receivables - life insurance$8,506,960$8,365,140$8,147,145$7,996,899$7,962,115
Consumer and other
Nonaccrual$41$18$2$2$3
90+ days and still accruing1849847148121
60-89 days past due61162592281
30-59 days past due175542882264366
Current116,044115,49998,57282,24086,785
Total consumer and other$116,505$116,319$99,562$82,676$87,356
Total loans, net of unearned income
Early buy-out loans guaranteed by U.S. government agencies (1)$134,067$123,742$156,756$135,389$134,178
Nonaccrual173,977151,203154,641161,059151,399
90+ days and still accruing14,86121,18716,18218,62822,852
60-89 days past due92,10855,039164,37083,06259,416
30-59 days past due163,323293,321249,888204,043139,768
Current50,463,34348,063,89847,313,20046,465,26644,167,918
Total loans, net of unearned income$51,041,679$48,708,390$48,055,037$47,067,447$44,675,531

(1) Early buy-out loans are insured or guaranteed by the Federal Housing Administration or the U.S. Department of Veterans Affairs, subject to indemnifications and insurance limits for certain loans.

TABLE 14: NON-PERFORMING ASSETS (1)

Jun 30,Mar 31,Dec 31,Sep 30,Jun 30,
(Dollars in thousands)20252025202420242024
Loans past due greater than 90 days and still accruing:
Commercial$$46$104$20$304
Commercial real estate225
Home equity
Residential real estate
Premium finance receivables - property & casualty14,35018,08116,03118,23522,427
Premium finance receivables - life insurance3272,962
Consumer and other1849847148121
Total loans past due greater than 90 days and still accruing14,86121,18716,18218,62822,852
Non-accrual loans:
Commercial80,87770,56073,49063,82651,087
Commercial real estate32,82826,18721,04242,07148,289
Home equity1,7802,0701,1171,1221,100
Residential real estate28,04722,52223,76217,95918,198
Premium finance receivables - property & casualty30,40429,84628,79736,07932,722
Premium finance receivables - life insurance6,431
Consumer and other4118223
Total non-accrual loans173,977151,203154,641161,059151,399
Total non-performing loans:
Commercial80,87770,60673,59463,84651,391
Commercial real estate32,82826,18721,04242,29648,289
Home equity1,7802,0701,1171,1221,100
Residential real estate28,04722,52223,76217,95918,198
Premium finance receivables - property & casualty44,75447,92744,82854,31455,149
Premium finance receivables - life insurance3272,9626,431
Consumer and other22511649150124
Total non-performing loans$188,838$172,390$170,823$179,687$174,251
Other real estate owned23,61522,62523,11613,68219,731
Total non-performing assets$212,453$195,015$193,939$193,369$193,982
Total non-performing loans by category as a percent of its own respective category’s period-end balance:
Commercial0.49%0.44%0.47%0.42%0.36%
Commercial real estate0.250.200.160.330.40
Home equity0.380.450.250.260.31
Residential real estate0.710.610.660.530.59
Premium finance receivables - property & casualty0.540.660.620.760.78
Premium finance receivables - life insurance0.000.040.08
Consumer and other0.190.100.050.180.14
Total loans, net of unearned income0.37%0.35%0.36%0.38%0.39%
Total non-performing assets as a percentage of total assets0.31%0.30%0.30%0.30%0.32%
Allowance for loan losses and unfunded lending-related commitments losses as a percentage of non-accrual loans262.71%296.25%282.33%270.53%288.69%

(1) Excludes early buy-out loans guaranteed by U.S. government agencies. Early buy-out loans are insured or guaranteed by the Federal Housing Administration or the U.S. Department of Veterans Affairs, subject to indemnifications and insurance limits for certain loans.

Non-performing Loans Rollforward, excluding early buy-out loans guaranteed by U.S. government agencies

Three Months EndedSix Months Ended
Jun 30,Mar 31,Dec 31,Sep 30,Jun 30,Jun 30,Jun 30,
(In thousands)2025202520242024202420252024
Balance at beginning of period$172,390$170,823$179,687$174,251$148,359$170,823$139,030
Additions from becoming non-performing in the respective period48,65127,72130,93142,33554,37676,37277,518
Additions from assets acquired in the respective period189
Return to performing status(6,896)(1,207)(1,108)(362)(912)(8,103)(1,402)
Payments received(5,602)(15,965)(12,219)(10,894)(9,611)(21,567)(17,947)
Transfer to OREO and other repossessed assets(1,315)(17,897)(3,680)(6,945)(1,315)(8,326)
Charge-offs, net(11,734)(8,600)(5,612)(21,211)(7,673)(20,334)(22,483)
Net change for premium finance receivables(6,656)(382)(2,959)(941)(3,343)(7,038)7,861
Balance at end of period$188,838$172,390$170,823$179,687$174,251$188,838$174,251


Other Real Estate Owned

Three Months Ended
Jun 30,Mar 31,Dec 31,Sep 30,Jun 30,
(In thousands)20252025202420242024
Balance at beginning of period$22,625$23,116$13,682$19,731$14,538
Disposals/resolved(8,545)(9,729)(1,752)
Transfers in at fair value, less costs to sell1,31517,9793,6806,945
Fair value adjustments(325)(491)
Balance at end of period$23,615$22,625$23,116$13,682$19,731
Period End
(In thousands)Jun 30,Mar 31,Dec 31,Sep 30,Jun 30,
Balance by Property Type:20252025202420242024
Residential real estate$$$$$161
Commercial real estate23,61522,62523,11613,68219,570
Total$23,615$22,625$23,116$13,682$19,731


TABLE 15: NON-INTEREST INCOME

Three Months EndedQ2 2025 compared to
Q1 2025
Q2 2025 compared to
Q2 2024
Jun 30,Mar 31,Dec 31,Sep 30,Jun 30,
(Dollars in thousands)20252025202420242024$ Change% Change$ Change% Change
Brokerage$4,212$4,757$5,328$6,139$5,588$(545)(11)%$(1,376)(25)%
Trust and asset management32,60929,28533,44731,08529,8253,324112,7849
Total wealth management36,82134,04238,77537,22435,4132,77981,4084
Mortgage banking23,17020,52920,45215,97429,1242,64113(5,954)(20)
Service charges on deposit accounts19,50219,36218,86416,43015,54614013,95625
Gains (losses) on investment securities, net6503,196(2,835)3,189(4,282)(2,546)(80)4,932NM
Fees from covered call options5,6243,4462,3059882,0562,178633,568NM
Trading gains (losses), net151(64)(113)(130)70215NM81NM
Operating lease income, net15,16615,28715,32715,33513,938(121)(1)1,2289
Other:
Interest rate swap fees3,0102,2693,3602,9143,39274133(382)(11)
BOLI2,2577961,2361,5171,3511,461NM90667
Administrative services1,3151,3931,3471,4501,322(78)(6)(7)(1)
Foreign currency remeasurement gains (losses)658(183)(682)696(145)841NM803NM
Changes in fair value on EBOs and loans held-for-investment172383129518604(211)(55)(432)(72)
Early pay-offs of capital leases400768514532393(368)(48)72
Miscellaneous15,19315,41014,77216,51022,365(217)(1)(7,172)(32)
Total Other23,00520,83620,67624,13729,2822,16910(6,277)(21)
Total Non-Interest Income$124,089$116,634$113,451$113,147$121,147$7,4556 %$2,9422 %
Six Months EndedQ2 2025 compared to Q2 2024
Jun 30,Jun 30,
(Dollars in thousands)20252024$ Change% Change
Brokerage$8,969$11,144$(2,175)(20)%
Trust and asset management61,89459,0842,8105
Total wealth management70,86370,2286351
Mortgage banking43,69956,787(13,088)(23)
Service charges on deposit accounts38,86430,3578,50728
Gains (losses) on investment securities, net3,846(2,956)6,802NM
Fees from covered call options9,0706,9032,16731
Trading gains, net87747(660)(88)
Operating lease income, net30,45328,0482,4059
Other:
Interest rate swap fees5,2796,220(941)(15)
BOLI3,0533,002512
Administrative services2,7082,5391697
Foreign currency remeasurement gains (losses)475(1,316)1,791NM
Changes in fair value on EBOs and loans held-for-investment555165390NM
Early pay-offs of capital leases1,16882334542
Miscellaneous30,60360,180(29,577)(49)
Total Other43,84171,613(27,772)(39)
Total Non-Interest Income$240,723$261,727$(21,004)(8)%

NM - Not meaningful.
BOLI - Bank-owned life insurance.
EBO - Early buy-out.


TABLE 16: MORTGAGE BANKING

Three Months Ended
(Dollars in thousands)Jun 30,
2025
Mar 31,
2025
Dec 31,
2024
Sep 30,
2024
Jun 30,
2024
Originations:
Retail originations$523,759$348,468$483,424$527,408$544,394
Veterans First originations157,787111,985176,914239,369177,792
Total originations for sale (A)$681,546$460,453$660,338$766,777$722,186
Originations for investment422,926217,177355,119218,984275,331
Total originations$1,104,472$677,630$1,015,457$985,761$997,517
As a percentage of originations for sale:
Retail originations77%76%73%69%75%
Veterans First originations2324273125
Purchases74%77%65%72%83%
Refinances2623352817
Production Margin:
Production revenue (B) (1)$13,380$9,941$6,993$13,113$14,990
Total originations for sale (A)$681,546$460,453$660,338$766,777$722,186
Add: Current period end mandatory interest rate lock commitments to fund originations for sale (2)163,664197,297103,946272,072222,738
Less: Prior period end mandatory interest rate lock commitments to fund originations for sale (2)197,297103,946272,072222,738207,775
Total mortgage production volume (C)$647,913$553,804$492,212$816,111$737,149
Production margin (B / C)2.07%1.80%1.42%1.61%2.03%
Mortgage Servicing:
Loans serviced for others (D)$12,470,924$12,402,352$12,400,913$12,253,361$12,211,027
Mortgage Servicing Rights (“MSR”), at fair value (E)193,061196,307203,788186,308204,610
Percentage of MSRs to loans serviced for others (E / D)1.55%1.58%1.64%1.52%1.68%
Servicing income$10,520$10,611$10,731$10,809$10,586
MSR Fair Value Asset Activity
MSR - FV at Beginning of Period$196,307$203,788$186,308$204,610$201,044
MSR - current period capitalization6,3364,66910,0106,3578,223
MSR - collection of expected cash flows - paydowns(1,516)(1,590)(1,463)(1,598)(1,504)
MSR - collection of expected cash flows - payoffs and repurchases(4,100)(3,046)(4,315)(5,730)(4,030)
MSR - changes in fair value model assumptions(3,966)(7,514)13,248(17,331)877
MSR Fair Value at end of period$193,061$196,307$203,788$186,308$204,610
Summary of Mortgage Banking Revenue:
Operational:
Production revenue (1)$13,380$9,941$6,993$13,113$14,990
MSR - Current period capitalization6,3364,66910,0106,3578,223
MSR - Collection of expected cash flows - paydowns(1,516)(1,590)(1,463)(1,598)(1,504)
MSR - Collection of expected cash flows - pay offs(4,100)(3,046)(4,315)(5,730)(4,030)
Servicing Income10,52010,61110,73110,80910,586
Other Revenue(79)(172)(51)(67)112
Total operational mortgage banking revenue$24,541$20,413$21,905$22,884$28,377
Fair Value:
MSR - changes in fair value model assumptions$(3,966)$(7,514)$13,248$(17,331)$877
Gain (loss) on derivative contract held as an economic hedge, net2,5354,897(11,452)6,892(772)
Changes in FV on early buy-out loans guaranteed by US Govt (HFS)602,733(3,249)3,529642
Total fair value mortgage banking revenue$(1,371)$116$(1,453)$(6,910)$747
Total mortgage banking revenue$23,170$20,529$20,452$15,974$29,124

(1) Production revenue represents revenue earned from the origination and subsequent sale of mortgages, including gains on loans sold and fees from originations, changes in other related financial instruments carried at fair value, processing and other related activities, and excludes servicing fees, changes in the fair value of servicing rights and changes to the mortgage recourse obligation and other non-production revenue.
(2) Certain volume adjusted for the estimated pull-through rate of the loan, which represents the Company’s best estimate of the likelihood that a committed loan will ultimately fund.


Six Months Ended
(Dollars in thousands)Jun 30,
2025
Jun 30,
2024
Originations:
Retail originations$872,227$875,898
Veterans First originations269,772321,901
Total originations for sale (A)$1,141,999$1,197,799
Originations for investment640,103444,577
Total originations$1,782,102$1,642,376
As a percentage of originations for sale:
Retail originations76%73%
Veterans First originations2427
Purchases75%80%
Refinances2520
Production Margin:
Production revenue (B) (1)$23,321$28,425
Total originations for sale (A)$1,141,999$1,197,799
Add: Current period end mandatory interest rate lock commitments to fund originations for sale (2)163,664222,738
Less: Prior period end mandatory interest rate lock commitments to fund originations for sale (2)103,946119,624
Total mortgage production volume (C)$1,201,717$1,300,913
Production margin (B / C)1.94%2.19%
Mortgage Servicing:
Loans serviced for others (D)$12,470,924$12,211,027
MSRs, at fair value (E)193,061204,610
Percentage of MSRs to loans serviced for others (E / D)1.55%1.68%
Servicing income$21,131$21,084
MSR Fair Value Asset Activity
MSR - FV at Beginning of Period$203,788$192,456
MSR - current period capitalization11,00513,602
MSR - collection of expected cash flows - paydowns(3,106)(2,948)
MSR - collection of expected cash flows - payoffs and repurchases(7,146)(6,972)
MSR - changes in fair value model assumptions(11,480)8,472
MSR Fair Value at end of period$193,061$204,610
Summary of Mortgage Banking Revenue:
Operational:
Production revenue (1)$23,321$28,425
MSR - Current period capitalization11,00513,602
MSR - Collection of expected cash flows - paydowns(3,106)(2,948)
MSR - Collection of expected cash flows - pay offs(7,146)(6,972)
Servicing Income21,13121,084
Other Revenue(251)21
Total operational mortgage banking revenue$44,954$53,212
Fair Value:
MSR - changes in fair value model assumptions$(11,480)$8,472
Gain (loss) on derivative contract held as an economic hedge, net7,432(3,349)
Changes in FV on early buy-out loans guaranteed by US Govt (HFS)2,793(1,548)
Total fair value mortgage banking revenue$(1,255)$3,575
Total mortgage banking revenue$43,699$56,787

(1) Production revenue represents revenue earned from the origination and subsequent sale of mortgages, including gains on loans sold and fees from originations, changes in other related financial instruments carried at fair value, processing and other related activities, and excludes servicing fees, changes in the fair value of servicing rights and changes to the mortgage recourse obligation and other non-production revenue.
(2) Certain volume adjusted for the estimated pull-through rate of the loan, which represents the Company’s best estimate of the likelihood that a committed loan will ultimately fund.

TABLE 17: NON-INTEREST EXPENSE

Three Months EndedQ2 2025 compared to
Q1 2025
Q2 2025 compared to
Q2 2024
Jun 30,Mar 31,Dec 31,Sep 30,Jun 30,
(Dollars in thousands)20252025202420242024$ Change% Change$ Change% Change
Salaries and employee benefits:
Salaries$123,174$123,917$120,969$118,971$113,860$(743)(1)%$9,3148 %
Commissions and incentive compensation55,87152,53654,79257,57552,1513,33563,7207
Benefits40,49635,07336,37234,71532,5305,423157,96624
Total salaries and employee benefits219,541211,526212,133211,261198,5418,015421,00011
Software and equipment36,52234,71734,25831,57429,2311,80557,29125
Operating lease equipment10,75710,47110,26310,51810,8342863(77)(1)
Occupancy, net20,22820,77820,59719,94519,585(550)(3)6433
Data processing12,11011,27410,9579,9849,50383672,60727
Advertising and marketing18,76112,27213,09718,23917,4366,489531,3258
Professional fees9,2439,04411,3349,7839,9671992(724)(7)
Amortization of other acquisition-related intangible assets5,5805,6185,7734,0421,122(38)(1)4,458NM
FDIC insurance10,97110,92610,64010,51210,4294505425
OREO expense, net505643397(938)(259)(138)(21)764NM
Other:
Lending expenses, net of deferred origination costs4,8695,8666,4484,9955,335(997)(17)(466)(9)
Travel and entertainment6,0265,2708,1405,3645,3407561468613
Miscellaneous26,34827,68524,50225,40823,289(1,337)(5)3,05913
Total other37,24338,82139,09035,76733,964(1,578)(4)3,27910
Total Non-Interest Expense$381,461$366,090$368,539$360,687$340,353$15,3714 %$41,10812 %
Six Months EndedQ2 2025 compared to Q2 2024
Jun 30,Jun 30,
(Dollars in thousands)20252024$ Change% Change
Salaries and employee benefits:
Salaries$247,091$226,032$21,0599%
Commissions and incentive compensation108,407103,1525,2555
Benefits75,56964,53011,03917
Total salaries and employee benefits431,067393,71437,3539
Software and equipment71,23956,96214,27725
Operating lease equipment21,22821,517(289)(1)
Occupancy, net41,00638,6712,3356
Data processing23,38418,7954,58924
Advertising and marketing31,03330,4765572
Professional fees18,28719,520(1,233)(6)
Amortization of other acquisition-related intangible assets11,1982,2808,918NM
FDIC insurance21,89719,8102,08711
FDIC insurance - special assessment5,156(5,156)(100)
OREO expense, net1,1481331,015NM
Other:
Lending expenses, net of deferred origination costs10,73510,4133223
Travel and entertainment11,2969,9371,35914
Miscellaneous54,03346,1147,91917
Total other76,06466,4649,60014
Total Non-Interest Expense$747,551$673,498$74,05311%

NM - Not meaningful.


TABLE 18
: SUPPLEMENTAL NON-GAAP FINANCIAL MEASURES/RATIOS

The accounting and reporting policies of Wintrust conform to generally accepted accounting principles (“GAAP”) in the United States and prevailing practices in the banking industry. However, certain non-GAAP performance measures and ratios are used by management to evaluate and measure the Company’s performance. These include taxable-equivalent net interest income (including its individual components), taxable-equivalent net interest margin (including its individual components), the taxable-equivalent efficiency ratio, tangible common equity ratio, tangible book value per common share, return on average tangible common equity, and pre-tax income, excluding provision for credit losses. Management believes that these measures and ratios provide users of the Company’s financial information a more meaningful view of the performance of the Company’s interest-earning assets and interest-bearing liabilities and of the Company’s operating efficiency. Other financial holding companies may define or calculate these measures and ratios differently.

Management reviews yields on certain asset categories and the net interest margin of the Company and its banking subsidiaries on a fully taxable-equivalent basis (“FTE”). In this non-GAAP presentation, net interest income is adjusted to reflect tax-exempt interest income on an equivalent before-tax basis using tax rates effective as of the end of the period. This measure ensures comparability of net interest income arising from both taxable and tax-exempt sources. Net interest income on a FTE basis is also used in the calculation of the Company’s efficiency ratio. The efficiency ratio, which is calculated by dividing non-interest expense by total taxable-equivalent net revenue (less securities gains or losses), measures how much it costs to produce one dollar of revenue. Securities gains or losses are excluded from this calculation to better match revenue from daily operations to operational expenses. Management considers the tangible common equity ratio and tangible book value per common share as useful measurements of the Company’s equity. The Company references the return on average tangible common equity as a measurement of profitability. Management considers pre-tax income, excluding provision for credit losses, as a useful measurement of the Company’s core net income.

Three Months EndedSix Months Ended
Jun 30,Mar 31,Dec 31,Sep 30,Jun 30,Jun 30,Jun 30,
(Dollars and shares in thousands)2025202520242024202420252024
Reconciliation of Non-GAAP Net Interest Margin and Efficiency Ratio:
(A) Interest Income (GAAP)$920,908$886,965$913,501$908,604$849,979$1,807,873$1,655,492
Taxable-equivalent adjustment:
- Loans2,2002,2062,3522,4742,3054,4064,551
- Liquidity Management Assets6806907166685671,3701,117
- Other Earning Assets322338
(B) Interest Income (non-GAAP)$923,788$889,864$916,571$911,748$852,854$1,813,652$1,661,168
(C) Interest Expense (GAAP)374,214360,491388,353406,021379,369734,705720,688
(D) Net Interest Income (GAAP) (A minus C)546,694526,474525,148502,583470,6101,073,168934,804
(E) Net Interest Income (non-GAAP) (B minus C)549,574529,373528,218505,727473,4851,078,947940,480
Net interest margin (GAAP)3.52%3.54%3.49%3.49%3.50%3.53%3.53%
Net interest margin, fully taxable-equivalent (non-GAAP)3.543.563.513.513.523.553.56
(F) Non-interest income$124,089$116,634$113,451$113,147$121,147$240,723$261,727
(G) Gains (losses) on investment securities, net6503,196(2,835)3,189(4,282)3,846(2,956)
(H) Non-interest expense381,461366,090368,539360,687340,353747,551673,498
Efficiency ratio (H/(D+F-G))56.92%57.21%57.46%58.88%57.10%57.06%56.15%
Efficiency ratio (non-GAAP) (H/(E+F-G))56.6856.9557.1858.5856.8356.8155.88
Three Months EndedSix Months Ended
Jun 30,Mar 31,Dec 31,Sep 30,Jun 30,Jun 30,Jun 30,
(Dollars and shares in thousands)2025202520242024202420252024
Reconciliation of Non-GAAP Tangible Common Equity Ratio:
Total shareholders’ equity (GAAP)$7,225,696$6,600,537$6,344,297$6,399,714$5,536,628
Less: Non-convertible preferred stock (GAAP)(837,500)(412,500)(412,500)(412,500)(412,500)
Less: Acquisition-related intangible assets (GAAP)(908,639)(913,004)(918,632)(924,646)(676,562)
(I) Total tangible common shareholders’ equity (non-GAAP)$5,479,557$5,275,033$5,013,165$5,062,568$4,447,566
(J) Total assets (GAAP)$68,983,318$65,870,066$64,879,668$63,788,424$59,781,516
Less: Intangible assets (GAAP)(908,639)(913,004)(918,632)(924,646)(676,562)
(K) Total tangible assets (non-GAAP)$68,074,679$64,957,062$63,961,036$62,863,778$59,104,954
Common equity to assets ratio (GAAP) (L/J)9.3%9.4%9.1%9.4%8.6%
Tangible common equity ratio (non-GAAP) (I/K)8.08.17.88.17.5
Reconciliation of Non-GAAP Tangible Book Value per Common Share:
Total shareholders’ equity$7,225,696$6,600,537$6,344,297$6,399,714$5,536,628
Less: Preferred stock(837,500)(412,500)(412,500)(412,500)(412,500)
(L) Total common equity$6,388,196$6,188,037$5,931,797$5,987,214$5,124,128
(M) Actual common shares outstanding66,93866,91966,49566,48261,760
Book value per common share (L/M)$95.43$92.47$89.21$90.06$82.97
Tangible book value per common share (non-GAAP) (I/M)81.8678.8375.3976.1572.01
Reconciliation of Non-GAAP Return on Average Tangible Common Equity:
(N) Net income applicable to common shares$188,536$182,048$178,371$163,010$145,397$370,584$325,700
Add: Acquisition-related intangible asset amortization5,5805,6185,7734,0421,12211,1982,280
Less: Tax effect of acquisition-related intangible asset amortization(1,495)(1,421)(1,547)(1,087)(311)(2,923)(602)
After-tax Acquisition-related intangible asset amortization$4,085$4,197$4,226$2,955$811$8,275$1,678
(O) Tangible net income applicable to common shares (non-GAAP)$192,621$186,245$182,597$165,965$146,208$378,859$327,378
Total average shareholders’ equity$6,862,040$6,460,941$6,418,403$5,990,429$5,450,173$6,662,598$5,445,315
Less: Average preferred stock(599,313)(412,500)(412,500)(412,500)(412,500)(506,423)(412,500)
(P) Total average common shareholders’ equity$6,262,727$6,048,441$6,005,903$5,577,929$5,037,673$6,156,175$5,032,815
Less: Average acquisition-related intangible assets(910,924)(916,069)(921,438)(833,574)(677,207)(913,483)(677,969)
(Q) Total average tangible common shareholders’ equity (non-GAAP)$5,351,803$5,132,372$5,084,465$4,744,355$4,360,466$5,242,692$4,354,846
Return on average common equity, annualized (N/P)12.07%12.21%11.82%11.63%11.61%12.14%13.01%
Return on average tangible common equity, annualized (non-GAAP) (O/Q)14.4414.7214.2913.9213.4914.5715.12
Reconciliation of Non-GAAP Pre-Tax, Pre-Provision Income:
Income before taxes$267,088$253,055$253,081$232,709$211,343$520,143$461,299
Add: Provision for credit losses22,23423,96316,97922,33440,06146,19761,734
Pre-tax income, excluding provision for credit losses (non-GAAP)$289,322$277,018$270,060$255,043$251,404$566,340$523,033


WINTRUST SUBSIDIARIES

Wintrust is a financial holding company whose common stock is traded on the Nasdaq Global Select Market ( WTFC) that operates bank retail locations in the greater Chicago, southern Wisconsin, west Michigan, northwest Indiana, and southwest Florida market areas. Its 16 community bank subsidiaries are: Barrington Bank & Trust Company, N.A., Beverly Bank & Trust Company, N.A., Crystal Lake Bank & Trust Company, N.A., Hinsdale Bank & Trust Company, N.A., Lake Forest Bank & Trust Company, N.A., Libertyville Bank & Trust Company, N.A., Macatawa Bank, N.A., Northbrook Bank & Trust Company, N.A., Old Plank Trail Community Bank, N.A., Schaumburg Bank & Trust Company, N.A., St. Charles Bank & Trust Company, N.A., State Bank of The Lakes, N.A., Town Bank, N.A., Village Bank & Trust, N.A., Wheaton Bank & Trust Company, N.A., and Wintrust Bank, N.A.

Additionally, the Company operates various non-bank businesses:

  • FIRST Insurance Funding and Wintrust Life Finance, each a division of Lake Forest Bank & Trust Company, N.A., serve commercial and life insurance loan customers, respectively, throughout the United States.
  • First Insurance Funding of Canada serves commercial insurance loan customers throughout Canada.
  • Tricom, Inc. of Milwaukee provides high-yielding, short-term accounts receivable financing and value-added out-sourced administrative services, such as data processing of payrolls, billing and cash management services, to temporary staffing service clients located throughout the United States.
  • Wintrust Mortgage, a division of Barrington Bank & Trust Company, N.A., engages primarily in the origination and purchase of residential mortgages for sale into the secondary market through origination offices located throughout the United States.
  • Wintrust Investments, LLC provides a full range of private client and brokerage services to clients and correspondent banks located primarily in the Midwest.
  • Great Lakes Advisors LLC provides money management services and advisory services to individual accounts.
  • Wintrust Private Trust Company, N.A., a trust subsidiary, allows Wintrust to service customers’ trust and investment needs at each banking location.
  • Wintrust Asset Finance offers direct leasing opportunities.
  • CDEC provides Qualified Intermediary services (as defined by U.S. Treasury regulations) for taxpayers seeking to structure tax-deferred like-kind exchanges under Internal Revenue Code Section 1031.

FORWARD-LOOKING STATEMENTS

This document contains forward-looking statements within the meaning of federal securities laws. Forward-looking information can be identified through the use of words such as “intend,” “plan,” “project,” “expect,” “anticipate,” “believe,” “estimate,” “contemplate,” “possible,” “will,” “may,” “should,” “would” and “could.” Forward-looking statements and information are not historical facts, are premised on many factors and assumptions, and represent only management’s expectations, estimates and projections regarding future events. Similarly, these statements are not guarantees of future performance and involve certain risks and uncertainties that are difficult to predict, and which may include, but are not limited to, those listed below and the Risk Factors discussed under Item 1A of the Company’s 2024 Annual Report on Form 10-K and in any of the Company’s subsequent SEC filings. The Company intends such forward-looking statements to be covered by the safe harbor provisions for forward-looking statements contained in the Private Securities Litigation Reform Act of 1995, and is including this statement for purposes of invoking these safe harbor provisions. Such forward-looking statements may be deemed to include, among other things, statements relating to the Company’s future financial performance, the performance of its loan portfolio, the expected amount of future credit reserves and charge-offs, delinquency trends, growth plans, regulatory developments, securities that the Company may offer from time to time, and management’s long-term performance goals, as well as statements relating to the anticipated effects on the Company’s financial condition and results of operations from expected developments or events, the Company’s business and growth strategies, including future acquisitions of banks, specialty finance or wealth management businesses, internal growth and plans to form additional de novo banks or branch offices. Actual results could differ materially from those addressed in the forward-looking statements as a result of numerous factors, including the following:

  • economic conditions and events that affect the economy, housing prices, the job market and other factors that may adversely affect the Company’s liquidity and the performance of its loan portfolios, including an actual or threatened U.S. government debt default or rating downgrade, particularly in the markets in which it operates;
  • negative effects suffered by us or our customers resulting from changes in U.S. or international trade policies;
  • the extent of defaults and losses on the Company’s loan portfolio, which may require further increases in its allowance for credit losses;
  • estimates of fair value of certain of the Company’s assets and liabilities, which could change in value significantly from period to period;
  • the financial success and economic viability of the borrowers of our commercial loans;
  • commercial real estate market conditions in the Chicago metropolitan area, southern Wisconsin and west Michigan;
  • the extent of commercial and consumer delinquencies and declines in real estate values, which may require further increases in the Company’s allowance for credit losses;
  • inaccurate assumptions in our analytical and forecasting models used to manage our loan portfolio;
  • changes in the level and volatility of interest rates, the capital markets and other market indices that may affect, among other things, the Company’s liquidity and the value of its assets and liabilities;
  • the interest rate environment, including a prolonged period of low interest rates or rising interest rates, either broadly or for some types of instruments, which may affect the Company’s net interest income and net interest margin, and which could materially adversely affect the Company’s profitability;
  • competitive pressures in the financial services business which may affect the pricing of the Company’s loan and deposit products as well as its services (including wealth management services), which may result in loss of market share and reduced income from deposits, loans, advisory fees and income from other products;
  • failure to identify and complete favorable acquisitions in the future or unexpected losses, difficulties or developments related to the Company’s recent or future acquisitions;
  • unexpected difficulties and losses related to FDIC-assisted acquisitions;
  • harm to the Company’s reputation;
  • any negative perception of the Company’s financial strength;
  • ability of the Company to raise additional capital on acceptable terms when needed;
  • disruption in capital markets, which may lower fair values for the Company’s investment portfolio;
  • ability of the Company to use technology to provide products and services that will satisfy customer demands and create efficiencies in operations and to manage risks associated therewith;
  • failure or breaches of our security systems or infrastructure, or those of third parties;
  • security breaches, including denial of service attacks, hacking, social engineering attacks, malware intrusion and similar events or data corruption attempts and identity theft;
  • adverse effects on our information technology systems, or those of third parties, resulting from failures, human error or cyberattacks (including ransomware);
  • adverse effects of failures by our vendors to provide agreed upon services in the manner and at the cost agreed, particularly our information technology vendors;
  • increased costs as a result of protecting our customers from the impact of stolen debit card information;
  • accuracy and completeness of information the Company receives about customers and counterparties to make credit decisions;
  • ability of the Company to attract and retain senior management experienced in the banking and financial services industries;
  • environmental liability risk associated with lending activities;
  • the impact of any claims or legal actions to which the Company is subject, including any effect on our reputation;
  • losses incurred in connection with repurchases and indemnification payments related to mortgages and increases in reserves associated therewith;
  • the loss of customers as a result of technological changes allowing consumers to complete their financial transactions without the use of a bank;
  • the soundness of other financial institutions and the impact of recent failures of financial institutions, including broader financial institution liquidity risk and concerns;
  • the expenses and delayed returns inherent in opening new branches and de novo banks;
  • liabilities, potential customer loss or reputational harm related to closings of existing branches;
  • examinations and challenges by tax authorities, and any unanticipated impact of the tax legislation;
  • changes in accounting standards, rules and interpretations, and the impact on the Company’s financial statements;
  • the ability of the Company to receive dividends from its subsidiaries;
  • a decrease in the Company’s capital ratios, including as a result of declines in the value of its loan portfolios, or otherwise;
  • legislative or regulatory changes, particularly changes in regulation of financial services companies and/or the products and services offered by financial services companies;
  • changes in laws, regulations, rules, standards and contractual obligations regarding data privacy and cybersecurity;
  • a lowering of our credit rating;
  • changes in U.S. monetary policy and changes to the Federal Reserve’s balance sheet, including changes in response to persistent inflation or otherwise;
  • regulatory restrictions upon our ability to market our products to consumers and limitations on our ability to profitably operate our mortgage business;
  • increased costs of compliance, heightened regulatory capital requirements and other risks associated with changes in regulation and the regulatory environment;
  • the impact of heightened capital requirements;
  • increases in the Company’s FDIC insurance premiums, or the collection of special assessments by the FDIC;
  • delinquencies or fraud with respect to the Company’s premium finance business;
  • credit downgrades among commercial and life insurance providers that could negatively affect the value of collateral securing the Company’s premium finance loans;
  • the Company’s ability to comply with covenants under its credit facility;
  • fluctuations in the stock market, which may have an adverse impact on the Company’s wealth management business and brokerage operation; and
  • widespread outages of operational, communication, or other systems, whether internal or provided by third parties, natural or other disasters (including acts of terrorism, armed hostilities and pandemics), and the effects of climate change.

Therefore, there can be no assurances that future actual results will correspond to these forward-looking statements. The reader is cautioned not to place undue reliance on any forward-looking statement made by the Company. Any such statement speaks only as of the date the statement was made or as of such date that may be referenced within the statement. The Company undertakes no obligation to update any forward-looking statement to reflect the impact of circumstances or events after the date of the press release. Persons are advised, however, to consult further disclosures management makes on related subjects in its reports filed with the Securities and Exchange Commission and in its press releases.

CONFERENCE CALL, WEBCAST AND REPLAY

The Company will hold a conference call on Tuesday, July 22, 2025 at 10:00 a.m. (CDT) regarding second quarter and year-to-date 2025 earnings results. Individuals interested in participating in the call by addressing questions to management should register for the call to receive the dial-in numbers and unique PIN at the Conference Call Link included within the Company’s press release dated June 20, 2025 available at the Investor Relations, Investor News and Events, Press Releases link on its website at https://www.wintrust.com. A separate simultaneous audio-only webcast link is included within the press release referenced above. Registration for and a replay of the audio-only webcast with an accompanying slide presentation will be available at https://www.wintrust.com, Investor Relations, Investor News and Events, Presentations & Conference Calls. The text of the second quarter and year-to-date 2025 earnings press release will also be available on the home page of the Company’s website at https://www.wintrust.com and at the Investor Relations, Investor News and Events, Press Releases link on its website.

FOR MORE INFORMATION CONTACT:
David A. Dykstra, Vice Chairman & Chief Operating Officer
(847) 939-9000
Amy Yuhn, Executive Vice President, Communications
(847) 939-9591
Web site address: www.wintrust.com

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