Wintrust Financial Corporation Reports $189M Net Income in Q1 2025

Wintrust Financial Corporation reported a net income of $189.0 million for the first quarter of 2025, reflecting a slight increase of 1% from $187.3 million in the same period last year. The earnings per diluted share decreased to $2.69 from $2.89 year-over-year. The growth in net income was primarily driven by an increase in net interest income, which rose to $526.5 million, up from $464.2 million in the first quarter of 2024, attributed to a $5.7 billion increase in average loans. However, this was partially offset by a decrease in non-interest income, which fell to $116.6 million from $140.6 million, largely due to a significant gain recognized in the previous year from the sale of a wealth management division.

The company’s total assets reached $65.9 billion, marking a 14% increase from $57.6 billion a year earlier. Total loans, including loans held for sale, increased to $49.0 billion, up 13% from the previous year. Deposits also saw a significant rise, totaling $53.6 billion, a 15% increase compared to $46.4 billion in the prior year. The growth in deposits was supported by the company’s marketing efforts and the acquisition of Macatawa Bank Corporation, which added approximately $2.9 billion in assets and $2.3 billion in deposits.

Wintrust's non-interest expenses increased to $366.1 million, a 10% rise from $333.1 million in the first quarter of 2024. This increase was primarily due to higher salaries and employee benefits, as well as costs associated with the Macatawa acquisition. The provision for credit losses was $24.0 million, up from $21.7 million in the prior year, reflecting the growth in the loan portfolio and macroeconomic uncertainties. The allowance for credit losses as a percentage of total loans was 0.92%, slightly down from 0.99% a year earlier.

In terms of operational metrics, the company reported a net interest margin of 3.54%, down from 3.57% in the first quarter of 2024. The decrease was attributed to lower yields on loans and other earning assets, despite a reduction in funding costs. The company’s loan portfolio remains diversified, with significant contributions from commercial, commercial real estate, and premium finance receivables. Wintrust continues to focus on maintaining a strong liquidity position, supported by its robust deposit base and access to various funding sources.

Looking ahead, Wintrust's management remains optimistic about the company's growth trajectory, emphasizing the importance of its balanced business model and strong deposit franchise in navigating economic challenges. The company plans to continue leveraging its capital management framework and exploring opportunities for further acquisitions to enhance its market position.