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Net Income (Full-Year 2025): $824 million, up 19% from $695 million in 2024.
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Earnings Per Diluted Share (Full-Year 2025): $11.40, up from $10.31 in 2024.
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Tangible Book Value: Increased by over $13 to nearly $89 per share.
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Total Assets (Year-End 2025): Just over $71 billion.
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Net Income (Q4 2025): $223 million, up 3% or $7 million from the prior quarter.
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Deposit Growth (Q4 2025): $1 billion, representing a 7% increase on an annualized basis.
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Loan Growth (Q4 2025): $1 billion, representing 8% growth on an annualized basis.
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Net Interest Income (Q4 2025): Increased by $16.9 million over the prior quarter.
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Net Interest Margin (Q4 2025): 3.54%, within the range of 3.50% to 3.56% for 2025.
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Noninterest Income (Q4 2025): $130.4 million, similar to the prior quarter.
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Noninterest Expenses (Q4 2025): $384.5 million, a slight increase from the prior quarter.
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Nonperforming Loans (Q4 2025): Increased to $185.8 million or 35 basis points.
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Charge-Offs (Q4 2025): 17 basis points, down from 19 basis points in the prior quarter.
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Commercial Real Estate NPLs (Q4 2025): Decreased from 0.21% to 0.18%.
Release Date: January 21, 2026
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
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Wintrust Financial Corp (NASDAQ:WTFC) reported record net income of $824 million for 2025, a 19% increase from 2024.
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Earnings per diluted share rose to $11.40, up from $10.31 in 2024.
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The company achieved solid operating leverage with net revenue up 11.2%, outpacing noninterest expense growth.
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WTFC experienced strong loan and deposit growth, with loans and deposits growing 11% and 10% respectively for the full year.
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Credit quality remained solid with low levels of nonperforming assets and charge-offs.
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The mortgage business remains weaker than desired, impacting noninterest income.
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Competitive pressures in the commercial real estate market could affect loan pricing and margins.
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Noninterest expenses increased slightly due to higher employee health insurance claims and other small expense increases.
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The company faces challenges in maintaining deposit growth to match loan growth, which can be lumpy.
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There is uncertainty in the mortgage market, which could impact future growth in the mortgage warehouse and residential mortgage segments.
Q: Can you discuss the factors driving your loan growth expectations for 2026, particularly in the context of potential economic softness in the first half of the year? A: Timothy Crane, President and CEO, explained that they are cautiously optimistic due to strong local economies and low unemployment levels. Despite potential softness in the first quarter, they expect loan growth to align with targets, supported by strong market positioning in C&I and CRE spaces. Richard Murphy, Chief Lending Officer, added that their unique market positioning and strong lending verticals, like mortgage warehouse and leasing, contribute to this optimism.
Q: What are your expectations for operating leverage and expense management in 2026? A: David Stoehr, CFO, stated that they expect mid- to high-single-digit revenue growth, with expenses growing in the 4% to 5% range off the fourth quarter run rate. They aim for positive operating leverage, investing in business growth while managing expenses. Tim Crane added that benefit expenses and potential mortgage business growth could impact expenses, but they are prepared to adjust if necessary.
Q: Can you elaborate on the decline in deposit costs and the drivers behind it? A: Timothy Crane noted that their team effectively managed deposit costs as the Fed moved, and they saw positive trends in DDA deposits. While year-end deposits can be lumpy, they continue to see growth in commercial deposits and treasury services, contributing to favorable deposit cost management.
Q: How do you view the competitive landscape and its impact on your market share and growth? A: Timothy Crane mentioned that Wintrust benefits from competitors focusing elsewhere, allowing them to capitalize on disruption. They compete with large banks and local institutions, differentiating through service and market presence. Despite competitive pressures, they feel well-positioned for growth.
Q: What is your outlook on capital deployment, considering your strong capital ratios? A: David Stoehr indicated that with mid- to high-single-digit growth, they expect capital to grow by about 10 basis points per quarter. They prioritize organic growth and well-priced acquisitions. If capital levels exceed 10.5% without acquisition opportunities, they may consider buybacks or dividend increases.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.