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Wintrust Financial Corporation Reports Record Full Year Net Income

WTFC

ROSEMONT, Ill., Jan. 21, 2025 (GLOBE NEWSWIRE) -- Wintrust Financial Corporation (“Wintrust”, “the Company”, “we” or “our”) (Nasdaq: WTFC) announced net income of $695.0 million or $10.31 per diluted common share for the year ended December 31, 2024 compared to net income of $622.6 million or $9.58 per diluted common share for the same period of 2023. Pre-tax, pre-provision income (non-GAAP) for the year ended December 31, 2024 totaled a record $1.0 billion, compared to $959.5 million for the same period of 2023.

The Company recorded quarterly net income of $185.4 million or $2.63 per diluted common share for the fourth quarter of 2024 compared to net income of $170.0 million or $2.47 per diluted common share for the third quarter of 2024. Pre-tax, pre-provision income (non-GAAP) totaled $270.1 million as compared to $255.0 million for the third quarter of 2024.

Timothy S. Crane, President and Chief Executive Officer, commented, “We are very pleased with our 2024 results, including record net income for the full year 2024. The Company exhibited consistently strong organic loan and deposit growth throughout 2024 and expanded our geographic footprint into the west Michigan market through the acquisition of Macatawa Bank Corporation (“Macatawa”). We enter 2025 with great momentum in our efforts to further expand the franchise.”

Additionally, Mr. Crane emphasized, “Net interest margin in the fourth quarter was unchanged compared to the third quarter of 2024. Our relative neutral sensitivity to further interest rate changes should allow our net interest margin to remain in the 3.50% range as we move forward into 2025 given the current market consensus outlook. Stable net interest margin coupled with continued balance sheet growth should result in further net interest income growth in 2025. Focusing on building long term franchise value, growth of net interest income, disciplined expense control and maintaining our consistent credit standards remain our priorities in 2025.”

Highlights of the fourth quarter of 2024:
Comparative information to the third quarter of 2024, unless otherwise noted

  • Total loans increased by approximately $1.0 billion, or 8% annualized.
  • Total deposits increased by approximately $1.1 billion, or 9% annualized.
  • Total assets increased by $1.1 billion, or 7% annualized.
  • Net interest income increased to $525.1 million in the fourth quarter of 2024 compared to $502.6 million in the third quarter of 2024, primarily due to average earning asset growth.
    • Net interest margin remained at 3.49% (3.51% on a fully taxable-equivalent basis, non-GAAP) during the fourth quarter of 2024.
  • Non-interest income was impacted by the following:
    • Mortgage banking revenue included a net negative fair value mark of $1.5 million in the fourth quarter of 2024, compared to a net negative fair value mark of $6.9 million in the third quarter of 2024. See Table 16 for details.
    • Net losses on investment securities totaling $2.8 million in the fourth quarter of 2024 related primarily to changes in the value of equity securities as compared to net gains of $3.2 million in the third quarter of 2024.
  • Non-interest expense was impacted by the following:
    • The Macatawa Bank acquisition added approximately $15.8 million of total operating expenses, including $4.8 million of core deposit intangible asset amortization in the fourth quarter of 2024 compared to approximately $10.1 million of total operating expenses, including $3.0 million of core deposit intangible asset amortization in the third quarter of 2024. The additional expense is attributable to one additional month of recognized expenses for Macatawa in the fourth quarter of 2024 as compared to the third quarter of 2024.
    • Incurred acquisition related costs of $1.8 million in the fourth quarter of 2024 as compared to $1.6 million in the third quarter of 2024.
  • Provision for credit losses totaled $17.0 million in the fourth quarter of 2024 as compared to a provision for credit losses of $22.3 million in the third quarter of 2024 which included a one-time Macatawa acquisition-related Day 1 provision of approximately $15.5 million.
  • Net charge-offs totaled $15.9 million or 13 basis points of average total loans on an annualized basis in the fourth quarter of 2024 compared to $26.7 million or 23 basis points of average total loans on an annualized basis in the third quarter of 2024.

Mr. Crane noted, “A stable net interest margin coupled with earning asset growth resulted in record net interest income in the fourth quarter of 2024 as we grew our net interest income by $22.6 million as compared to the third quarter of 2024. The company continued its consistent, strong loan growth as loans increased by $1.0 billion, or 8% on an annualized basis in the fourth quarter of 2024. Loan pipelines are strong and we remain prudent in our review of credit prospects, ensuring our loan growth adheres to our conservative credit standards. Deposit growth of $1.1 billion, or 9% on an annualized basis, in the fourth quarter of 2024 outpaced loan growth which resulted in our loans to deposits ratio ending the quarter at 91.5%. Non-interest bearing deposits increased $670.9 million compared to the third quarter of 2024 and comprised 22% of total deposits at the end of the fourth quarter of 2024. We continue to leverage our customer relationships and market positioning to generate deposits, grow loans and build long-term franchise value.”

Commenting on credit quality, Mr. Crane stated, “Credit metrics improved for the second consecutive quarter, ending 2024 with overall stable credit quality. Net charge-offs as a percentage of average total loans on an annualized basis improved, with the fourth quarter of 2024 being the low point for the year. Prudent credit management and disciplined underwriting standards continue to support low losses in the portfolios. Non-performing loans also improved in the second half of 2024, with the fourth quarter of 2024 non-performing loans being 0.36% of total loans. Improvement has been experienced in our commercial real estate portfolio, where consistent in-depth reviews of the portfolio have led to positive outcomes by proactively identifying and resolving problem credits. Total non-performing assets, at 0.30% of total assets at year-end, remained consistent with the same level at the end of the third quarter. We continue to be conservative, diversified, and maintain our consistently strong credit standards. We believe that the Company’s reserves are appropriate and we remain diligent in our review of credit.”

In summary, Mr. Crane noted, “We are proud of our results in 2024 and believe we are well-positioned to continue our momentum into the new year. We have successfully reduced our asset sensitivity, leaving us well positioned to deliver improved results independent of interest rate changes. We remain focused on winning new business, expanding our franchise and improving our position in the markets we serve.”

The graphs shown on pages 3-8 illustrate certain financial highlights of the fourth quarter of 2024 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/4c23147f-25a8-47d1-b395-94398cec535c

SUMMARY OF RESULTS:

BALANCE SHEET

Total assets increased $1.1 billion in the fourth quarter of 2024 as compared to the third quarter of 2024. Total loans increased by $1.0 billion as compared to the third quarter of 2024. The increase in loans was diversified across nearly all loan portfolios.

Total liabilities increased by $1.1 billion in the fourth quarter of 2024 as compared to the third quarter of 2024 primarily due to a $1.1 billion increase in total deposits. Strong organic deposit growth in the fourth quarter of 2024 enabled the Company to reduce brokered funding reliance by $482 million as compared to the third quarter of 2024. Non-interest bearing deposits increased $671 million in the fourth quarter of 2024 as compared to the third quarter of 2024. Non-interest bearing deposits as a percentage of total deposits increased to 22% at December 31, 2024, compared to 21% as of September 30, 2024. The Company's loans to deposits ratio was 91.5% on December 31, 2024 as compared to 91.6% as of September 30, 2024.

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 fourth quarter of 2024, net interest income totaled $525.1 million, an increase of $22.6 million as compared to the third quarter of 2024. The $22.6 million increase in net interest income in the fourth quarter of 2024 compared to the third quarter of 2024 was primarily due to a $2.6 billion increase in average earning assets.

Net interest margin was 3.49% (3.51% on a fully taxable-equivalent basis, non-GAAP) during the fourth quarter of 2024, unchanged compared to the third quarter of 2024. The yield on earning assets declined 24 basis points during the fourth quarter of 2024 as compared to the third quarter of 2024 primarily due to a 22 basis point decrease in loan yields. The net free funds contribution declined seven basis points compared to the third quarter of 2024 due to a reduced rate paid on interest-bearing liabilities. These declines were offset by a 31 basis point decrease in rate paid on interest-bearing liabilities. The 31 basis point decrease in rate paid on interest-bearing liabilities in the fourth quarter of 2024 as compared to the third quarter of 2024 was primarily due to a 33 basis point decline in rate paid on interest-bearing deposits.

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

ASSET QUALITY

The allowance for credit losses totaled $437.1 million as of December 31, 2024, relatively unchanged compared to $436.2 million as of September 30, 2024. A provision for credit losses totaling $17.0 million was recorded for the fourth quarter of 2024 as compared to $22.3 million recorded in the third quarter of 2024. The lower provision for credit losses recognized in the fourth quarter of 2024 as compared to the third quarter of 2024 is primarily attributable to the Day 1 provision for credit losses of approximately $15.5 million related to the Macatawa acquisition recognized in the third quarter of 2024. 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 December 31, 2024, September 30, 2024, and June 30, 2024 is shown on Table 12 of this report.

Net charge-offs totaled $15.9 million in the fourth quarter of 2024, a decrease of $10.8 million as compared to $26.7 million of net charge-offs in the third quarter of 2024. Net charge-offs as a percentage of average total loans were 13 basis points in the fourth quarter of 2024 on an annualized basis compared to 23 basis points on an annualized basis in the third quarter of 2024. For more information regarding net charge-offs, see Table 10 in this report.

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

Non-performing assets totaled $193.9 million and comprised 0.30% of total assets as of December 31, 2024, as compared to $193.4 million, or 0.30% of total assets, as of September 30, 2024. Non-performing loans totaled $170.8 million and comprised 0.36% of total loans at December 31, 2024, as compared to $179.7 million and 0.38% of total loans at September 30, 2024. The decrease in non-performing loans in the fourth quarter of 2024 was primarily attributable to a decline in commercial real estate nonaccrual loans. For more information regarding non-performing assets, see Table 14 in this report.

NON-INTEREST INCOME

Wealth management revenue increased by $1.6 million in the fourth quarter of 2024 as compared to the third quarter of 2024 primarily due to increased trust and asset management fees from higher assets under management during the period. Approximately $0.6 million of additional wealth management revenue recognized in the fourth quarter of 2024 compared to the third quarter of 2024 relates to one additional month of Macatawa results included in the current quarter. 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 increased by $4.5 million in the fourth quarter of 2024 as compared to the third quarter of 2024 primarily due to a change in net fair value marks, a $5.5 million impact. Partially offsetting the positive fair value impact was a decrease in operational mortgage banking revenue of $1.0 million in the fourth quarter of 2024 compared to the third quarter of 2024. For more information regarding mortgage banking revenue, see Table 16 in this report.

The Company recognized $18.9 million in service charges on deposits accounts in the fourth quarter of 2024 as compared to $16.4 million in the third quarter of 2024. The $2.4 million increase in the fourth quarter of 2024 was primarily the result of increased commercial account analysis fees.

The Company incurred $2.8 million in net losses on investment securities in the fourth quarter of 2024 as compared to $3.2 million in net gains in the third quarter of 2024. The net losses in the fourth quarter of 2024 were primarily the result of unrealized losses on the Company’s equity investment securities with a readily determinable fair value.

Fees from covered call options increased by $1.3 million in the fourth quarter of 2024 as compared to the third quarter of 2024. 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.

Other income decreased by $3.5 million in the fourth quarter of 2024 compared to the third quarter of 2024 due to unfavorable foreign currency remeasurement adjustments of $1.4 million and a variety of other smaller miscellaneous revenue declines.

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

NON-INTEREST EXPENSE

Non-interest expenses totaled $368.5 million in the fourth quarter of 2024, increasing $7.9 million as compared to $360.7 million in the third quarter of 2024. The additional expense is attributable to one additional month of recognized expenses for Macatawa in the fourth quarter of 2024 as compared to the third quarter of 2024. The Macatawa acquisition accounted for approximately $5.7 million of the increase, which included $1.8 million in additional amortization of other acquisition-related intangible assets in the fourth quarter of 2024 as compared to the third quarter of 2024.

Salaries and employee benefits expense increased by $872,000 in the fourth quarter of 2024 as compared to the third quarter of 2024. The $872,000 increase is primarily related to increased salaries expense due to the Macatawa acquisition impacting the fourth quarter of 2024 for three months as compared to two months in the third quarter of 2024 as well as increased employee insurance costs in the current quarter. These increases were partially offset by lower incentive compensation expense in the fourth quarter of 2024.

Software and equipment expense increased $2.7 million in the fourth quarter of 2024 as compared to the third quarter of 2024 primarily due to software expense relating to upgrading and maintenance of information technology and security infrastructure as well as the Macatawa acquisition.

Advertising and marketing expenses in the fourth quarter of 2024 totaled $13.1 million, which is a $5.1 million decrease as compared to the third quarter of 2024 primarily due to a decrease in sports sponsorships. Marketing costs are incurred to promote the Company’s brand, commercial banking capabilities and the Company’s various products, to attract loans and deposits and to announce new branch openings as well as the expansion of the Company’s non-bank businesses. The level of marketing expenditures depends on the timing of sponsorship programs utilized which are determined based on the market area, targeted audience, competition and various other factors. Generally, these expenses are elevated in the second and third quarters of each year.

Professional fees expense totaled $11.3 million in the fourth quarter of 2024, an increase of $1.6 million as compared to the third quarter of 2024. The increase in the current quarter relates primarily to increased fees on consulting services. Professional fees include legal, audit, and tax fees, external loan review costs, consulting arrangements and normal regulatory exam assessments.

The Company recorded net OREO expense of $397,000 in the fourth quarter of 2024, compared to net OREO income of $938,000 in the third quarter of 2024. The net OREO income in the third quarter of 2024 was primarily the result of realized gains on sales of OREO. Net OREO expenses also include all costs associated with obtaining, maintaining and selling other real estate owned properties as well as valuation adjustments.

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

INCOME TAXES

The Company recorded income tax expense of $67.7 million in the fourth quarter compared to $62.7 million in the third quarter of 2024. The effective tax rates were 26.76% in the fourth quarter of 2024 compared to 26.95% in the third quarter of 2024.

BUSINESS UNIT SUMMARY

Community Banking

Through its community banking unit, 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 fourth quarter of 2024, the community banking unit increased its commercial, commercial real estate and residential real estate loan portfolios.

Mortgage banking revenue was $20.5 million for the fourth quarter of 2024, an increase of $4.5 million as compared to the third quarter of 2024, primarily due to a change in net fair value marks, a $5.5 million impact. Partially offsetting the positive fair value impact was a decrease in operational mortgage banking revenue of $1.0 million in the fourth quarter of 2024 compared to the third quarter of 2024. See Table 16 for more detail. Service charges on deposit accounts totaled $18.9 million in the fourth quarter of 2024 as compared to $16.4 million in the third quarter of 2024. The Company’s gross commercial and commercial real estate loan pipelines remained solid as of December 31, 2024 indicating momentum for expected continued loan growth in the first quarter of 2025.

Specialty Finance

Through its specialty finance unit, 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 $5.1 billion during the fourth quarter of 2024. Average balances increased by $11.6 million, as compared to the third quarter of 2024. The Company’s leasing portfolio balance increased in the fourth quarter of 2024, with its portfolio of assets, including capital leases, loans and equipment on operating leases, totaling $3.9 billion as of December 31, 2024 as compared to $3.7 billion as of September 30, 2024. Revenues from the Company’s out-sourced administrative services business were $1.3 million in the fourth quarter of 2024, which was relatively stable compared to the third quarter of 2024.

Wealth Management

Through four separate subsidiaries within its wealth management unit, 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. See “Items Impacting Comparative Results,” regarding the sale of the Company’s Retirement Benefits Advisors (“RBA”) division during the first quarter of 2024. Wealth management revenue totaled $38.8 million in the fourth quarter of 2024, up slightly as compared to the third quarter of 2024. At December 31, 2024, the Company’s wealth management subsidiaries had approximately $51.2 billion of assets under administration, which included $8.5 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 carrying values of approximately $2.7 billion in assets, $2.3 billion in deposits and $1.4 billion in loans. As of December 31, 2024, the Company recorded preliminary goodwill of approximately $142.1 million on the purchase. The initial purchase accounting for the acquisition, in accordance with GAAP, for this business combination is not finalized and is therefore subject to change.

Division Sale

In the first quarter of 2024, the Company sold its RBA division and recorded a gain of approximately $20.0 million in other non-interest income from the sale.

Business Combination

On April 3, 2023, the Company completed its acquisition of Rothschild & Co Asset Management US Inc. and Rothschild & Co Risk Based Investments LLC from Rothschild & Co North America Inc. As the transaction was determined to be a business combination, the Company recorded goodwill of approximately $2.6 million on the purchase.

WINTRUST FINANCIAL CORPORATION
Key Operating Measures

Wintrust’s key operating measures and growth rates for the fourth quarter of 2024, as compared to the third quarter of 2024 (sequential quarter) and fourth quarter of 2023 (linked quarter), are shown in the table below:

% or (1)
basis point (bp) change from
3rd Quarter
2024
% or
basis point (bp) change from
4th Quarter
2023
Three Months Ended
(Dollars in thousands, except per share data) Dec 31, 2024 Sep 30, 2024 Dec 31, 2023
Net income $ 185,362 $ 170,001 $ 123,480 9 % 50 %
Pre-tax income, excluding provision for credit losses (non-GAAP) (2) 270,060 255,043 208,151 6 30
Net income per common share – Diluted 2.63 2.47 1.87 6 41
Cash dividends declared per common share 0.45 0.45 0.40 13
Net revenue (3) 638,599 615,730 570,803 4 12
Net interest income 525,148 502,583 469,974 4 12
Net interest margin 3.49 % 3.49 % 3.62 % bps (13 ) bps
Net interest margin – fully taxable-equivalent (non-GAAP) (2) 3.51 3.51 3.64 (13 )
Net overhead ratio (4) 1.60 1.62 1.89 (2 ) (29 )
Return on average assets 1.16 1.11 0.89 5 27
Return on average common equity 11.82 11.63 9.93 19 189
Return on average tangible common equity (non-GAAP) (2) 14.29 13.92 11.73 37 256
At end of period
Total assets $ 64,879,668 $ 63,788,424 $ 56,259,934 7 % 15 %
Total loans (5) 48,055,037 47,067,447 42,131,831 8 14
Total deposits 52,512,349 51,404,966 45,397,170 9 16
Total shareholders’ equity 6,344,297 6,399,714 5,399,526 (3 ) 17

(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 Ended Years Ended
(Dollars in thousands, except per share data) Dec 31,
2024
Sep 30,
2024
Jun 30,
2024
Mar 31,
2024
Dec 31,
2023
Dec 31,
2024
Dec 31,
2023
Selected Financial Condition Data (at end of period):
Total assets $ 64,879,668 $ 63,788,424 $ 59,781,516 $ 57,576,933 $ 56,259,934
Total loans (1) 48,055,037 47,067,447 44,675,531 43,230,706 42,131,831
Total deposits 52,512,349 51,404,966 48,049,026 46,448,858 45,397,170
Total shareholders’ equity 6,344,297 6,399,714 5,536,628 5,436,400 5,399,526
Selected Statements of Income Data:
Net interest income $ 525,148 $ 502,583 $ 470,610 $ 464,194 $ 469,974 $ 1,962,535 $ 1,837,864
Net revenue (2) 638,599 615,730 591,757 604,774 570,803 2,450,860 2,271,970
Net income 185,362 170,001 152,388 187,294 123,480 695,045 622,626
Pre-tax income, excluding provision for credit losses (non-GAAP) (3) 270,060 255,043 251,404 271,629 208,151 1,048,136 959,471
Net income per common share – Basic 2.68 2.51 2.35 2.93 1.90 10.47 9.72
Net income per common share – Diluted 2.63 2.47 2.32 2.89 1.87 10.31 9.58
Cash dividends declared per common share 0.45 0.45 0.45 0.45 0.40 1.80 1.60
Selected Financial Ratios and Other Data:
Performance Ratios:
Net interest margin 3.49 % 3.49 % 3.50 % 3.57 % 3.62 % 3.51 % 3.66 %
Net interest margin – fully taxable-equivalent (non-GAAP) (3) 3.51 3.51 3.52 3.59 3.64 3.53 3.68
Non-interest income to average assets 0.71 0.74 0.85 1.02 0.73 0.82 0.81
Non-interest expense to average assets 2.31 2.36 2.38 2.41 2.62 2.36 2.45
Net overhead ratio (4) 1.60 1.62 1.53 1.39 1.89 1.54 1.64
Return on average assets 1.16 1.11 1.07 1.35 0.89 1.17 1.16
Return on average common equity 11.82 11.63 11.61 14.42 9.93 12.32 12.90
Return on average tangible common equity (non-GAAP) (3) 14.29 13.92 13.49 16.75 11.73 14.58 15.23
Average total assets $ 63,594,105 $ 60,915,283 $ 57,493,184 $ 55,602,695 $ 55,017,075 $ 59,416,909 $ 53,529,506
Average total shareholders’ equity 6,418,403 5,990,429 5,450,173 5,440,457 5,066,196 5,826,940 5,023,153
Average loans to average deposits ratio 91.9 % 93.8 % 95.1 % 94.5 % 92.9 % 93.8 % 93.1 %
Period-end loans to deposits ratio 91.5 91.6 93.0 93.1 92.8
Common Share Data at end of period:
Market price per common share $ 124.71 $ 108.53 $ 98.56 $ 104.39 $ 92.75
Book value per common share 89.21 90.06 82.97 81.38 81.43
Tangible book value per common share (non-GAAP) (3) 75.39 76.15 72.01 70.40 70.33
Common shares outstanding 66,495,227 66,481,543 61,760,139 61,736,715 61,243,626
Other Data at end of period:
Common equity to assets ratio 9.1 % 9.4 % 8.6 % 8.7 % 8.9 %
Tangible common equity ratio (non-GAAP)(3) 7.8 8.1 7.5 7.6 7.7
Tier 1 leverage ratio (5) 9.4 9.6 9.3 9.4 9.3
Risk-based capital ratios:
Tier 1 capital ratio (5) 10.6 10.6 10.3 10.3 10.3
Common equity tier 1 capital ratio (5) 9.9 9.8 9.5 9.5 9.4
Total capital ratio (5) 12.2 12.2 12.1 12.2 12.1
Allowance for credit losses (6) $ 437,060 $ 436,193 $ 437,560 $ 427,504 $ 427,612
Allowance for loan and unfunded lending-related commitment losses to total loans 0.91 % 0.93 % 0.98 % 0.99 % 1.01 %
Number of:
Bank subsidiaries 16 16 15 15 15
Banking offices 205 203 177 176 174

(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)
Dec 31, Sep 30, Jun 30, Mar 31, Dec 31,
(In thousands) 2024 2024 2024 2024 2023
Assets
Cash and due from banks $ 452,017 $ 725,465 $ 415,462 $ 379,825 $ 423,404
Federal funds sold and securities purchased under resale agreements 6,519 5,663 62 61 60
Interest-bearing deposits with banks 4,409,753 3,648,117 2,824,314 2,131,077 2,084,323
Available-for-sale securities, at fair value 4,141,482 3,912,232 4,329,957 4,387,598 3,502,915
Held-to-maturity securities, at amortized cost 3,613,263 3,677,420 3,755,924 3,810,015 3,856,916
Trading account securities 4,072 3,472 4,134 2,184 4,707
Equity securities with readily determinable fair value 215,412 125,310 112,173 119,777 139,268
Federal Home Loan Bank and Federal Reserve Bank stock 281,407 266,908 256,495 224,657 205,003
Brokerage customer receivables 18,102 16,662 13,682 13,382 10,592
Mortgage loans held-for-sale, at fair value 331,261 461,067 411,851 339,884 292,722
Loans, net of unearned income 48,055,037 47,067,447 44,675,531 43,230,706 42,131,831
Allowance for loan losses (364,017 ) (360,279 ) (363,719 ) (348,612 ) (344,235 )
Net loans 47,691,020 46,707,168 44,311,812 42,882,094 41,787,596
Premises, software and equipment, net 779,130 772,002 722,295 744,769 748,966
Lease investments, net 278,264 270,171 275,459 283,557 281,280
Accrued interest receivable and other assets 1,739,334 1,721,090 1,671,334 1,580,142 1,551,899
Trade date securities receivable 551,031 690,722
Goodwill 796,942 800,780 655,955 656,181 656,672
Other acquisition-related intangible assets 121,690 123,866 20,607 21,730 22,889
Total assets $ 64,879,668 $ 63,788,424 $ 59,781,516 $ 57,576,933 $ 56,259,934
Liabilities and Shareholders’ Equity
Deposits:
Non-interest-bearing $ 11,410,018 $ 10,739,132 $ 10,031,440 $ 9,908,183 $ 10,420,401
Interest-bearing 41,102,331 40,665,834 38,017,586 36,540,675 34,976,769
Total deposits 52,512,349 51,404,966 48,049,026 46,448,858 45,397,170
Federal Home Loan Bank advances 3,151,309 3,171,309 3,176,309 2,676,751 2,326,071
Other borrowings 534,803 647,043 606,579 575,408 645,813
Subordinated notes 298,283 298,188 298,113 437,965 437,866
Junior subordinated debentures 253,566 253,566 253,566 253,566 253,566
Accrued interest payable and other liabilities 1,785,061 1,613,638 1,861,295 1,747,985 1,799,922
Total liabilities 58,535,371 57,388,710 54,244,888 52,140,533 50,860,408
Shareholders’ Equity:
Preferred stock 412,500 412,500 412,500 412,500 412,500
Common stock 66,560 66,546 61,825 61,798 61,269
Surplus 2,482,561 2,470,228 1,964,645 1,954,532 1,943,806
Treasury stock (6,153 ) (6,098 ) (5,760 ) (5,757 ) (2,217 )
Retained earnings 3,897,164 3,748,715 3,615,616 3,498,475 3,345,399
Accumulated other comprehensive loss (508,335 ) (292,177 ) (512,198 ) (485,148 ) (361,231 )
Total shareholders’ equity 6,344,297 6,399,714 5,536,628 5,436,400 5,399,526
Total liabilities and shareholders’ equity $ 64,879,668 $ 63,788,424 $ 59,781,516 $ 57,576,933 $ 56,259,934


WINTRU
ST FINANCIAL CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED)

Three Months Ended Years Ended
(Dollars in thousands, except per share data) Dec 31,
2024
Sep 30,
2024
Jun 30,
2024
Mar 31,
2024
Dec 31,
2023
Dec 31,
2024
Dec 31,
2023
Interest income
Interest and fees on loans $ 789,038 $ 794,163 $ 749,812 $ 710,341 $ 694,943 $ 3,043,354 $ 2,540,952
Mortgage loans held-for-sale 5,623 6,233 5,434 4,146 4,318 21,436 16,791
Interest-bearing deposits with banks 46,256 32,608 19,731 16,658 21,762 115,253 78,978
Federal funds sold and securities purchased under resale agreements 53 277 17 19 578 366 1,806
Investment securities 67,066 69,592 69,779 69,678 68,237 276,115 238,587
Trading account securities 6 11 13 18 15 48 41
Federal Home Loan Bank and Federal Reserve Bank stock 5,157 5,451 4,974 4,478 3,792 20,060 14,912
Brokerage customer receivables 302 269 219 175 203 965 1,047
Total interest income 913,501 908,604 849,979 805,513 793,848 3,477,597 2,893,114
Interest expense
Interest on deposits 346,388 362,019 335,703 299,532 285,390 1,343,642 906,470
Interest on Federal Home Loan Bank advances 26,050 26,254 24,797 22,048 18,316 99,149 72,286
Interest on other borrowings 7,519 9,013 8,700 9,248 9,557 34,480 35,280
Interest on subordinated notes 3,733 3,712 5,185 5,487 5,522 18,117 22,024
Interest on junior subordinated debentures 4,663 5,023 4,984 5,004 5,089 19,674 19,190
Total interest expense 388,353 406,021 379,369 341,319 323,874 1,515,062 1,055,250
Net interest income 525,148 502,583 470,610 464,194 469,974 1,962,535 1,837,864
Provision for credit losses 16,979 22,334 40,061 21,673 42,908 101,047 114,390
Net interest income after provision for credit losses 508,169 480,249 430,549 442,521 427,066 1,861,488 1,723,474
Non-interest income
Wealth management 38,775 37,224 35,413 34,815 33,275 146,227 130,607
Mortgage banking 20,452 15,974 29,124 27,663 7,433 93,213 83,073
Service charges on deposit accounts 18,864 16,430 15,546 14,811 14,522 65,651 55,250
(Losses) gains on investment securities, net (2,835 ) 3,189 (4,282 ) 1,326 2,484 (2,602 ) 1,525
Fees from covered call options 2,305 988 2,056 4,847 4,679 10,196 21,863
Trading (losses) gains, net (113 ) (130 ) 70 677 (505 ) 504 1,142
Operating lease income, net 15,327 15,335 13,938 14,110 14,162 58,710 53,298
Other 20,676 24,137 29,282 42,331 24,779 116,426 87,348
Total non-interest income 113,451 113,147 121,147 140,580 100,829 488,325 434,106
Non-interest expense
Salaries and employee benefits 212,133 211,261 198,541 195,173 193,971 817,108 748,013
Software and equipment 34,258 31,574 29,231 27,731 27,779 122,794 104,632
Operating lease equipment 10,263 10,518 10,834 10,683 10,694 42,298 42,363
Occupancy, net 20,597 19,945 19,585 19,086 18,102 79,213 77,068
Data processing 10,957 9,984 9,503 9,292 8,892 39,736 38,800
Advertising and marketing 13,097 18,239 17,436 13,040 17,166 61,812 65,075
Professional fees 11,334 9,783 9,967 9,553 8,768 40,637 34,758
Amortization of other acquisition-related intangible assets 5,773 4,042 1,122 1,158 1,356 12,095 5,498
FDIC insurance 10,640 10,512 10,429 14,537 43,677 46,118 71,102
OREO expenses, net 397 (938 ) (259 ) 392 (1,559 ) (408 ) (1,528 )
Other 39,090 35,767 33,964 32,500 33,806 141,321 126,718
Total non-interest expense 368,539 360,687 340,353 333,145 362,652 1,402,724 1,312,499
Income before taxes 253,081 232,709 211,343 249,956 165,243 947,089 845,081
Income tax expense 67,719 62,708 58,955 62,662 41,763 252,044 222,455
Net income $ 185,362 $ 170,001 $ 152,388 $ 187,294 $ 123,480 $ 695,045 $ 622,626
Preferred stock dividends 6,991 6,991 6,991 6,991 6,991 27,964 27,964
Net income applicable to common shares $ 178,371 $ 163,010 $ 145,397 $ 180,303 $ 116,489 $ 667,081 $ 594,662
Net income per common share - Basic $ 2.68 $ 2.51 $ 2.35 $ 2.93 $ 1.90 $ 10.47 $ 9.72
Net income per common share - Diluted $ 2.63 $ 2.47 $ 2.32 $ 2.89 $ 1.87 $ 10.31 $ 9.58
Cash dividends declared per common share $ 0.45 $ 0.45 $ 0.45 $ 0.45 $ 0.40 $ 1.80 $ 1.60
Weighted average common shares outstanding 66,491 64,888 61,839 61,481 61,236 63,685 61,149
Dilutive potential common shares 1,233 1,053 926 928 1,166 1,016 938
Average common shares and dilutive common shares 67,724 65,941 62,765 62,409 62,402 64,701 62,087


TABLE 1
: LOAN PORTFOLIO MIX AND GROWTH RATES

% Growth From
(Dollars in thousands) Dec 31,
2024
Sep 30,
2024
Jun 30,
2024
Mar 31,
2024
Dec 31,
2023
Sep 30,
2024 (1)
Dec 31,
2023
Balance:
Mortgage loans held-for-sale, excluding early buy-out exercised loans guaranteed by U.S. government agencies $ 189,774 $ 314,693 $ 281,103 $ 193,064 $ 155,529 (158 )% 22 %
Mortgage loans held-for-sale, early buy-out exercised loans guaranteed by U.S. government agencies 141,487 146,374 130,748 146,820 137,193 (13 ) 3
Total mortgage loans held-for-sale $ 331,261 $ 461,067 $ 411,851 $ 339,884 $ 292,722 (112 )% 13 %
Core loans:
Commercial
Commercial and industrial $ 6,861,735 $ 6,768,382 $ 6,226,336 $ 6,105,968 $ 5,804,629 5 % 18 %
Asset-based lending 1,611,001 1,709,685 1,465,867 1,355,255 1,433,250 (23 ) 12
Municipal 826,653 827,125 747,357 721,526 677,143 0 22
Leases 2,537,325 2,443,721 2,439,128 2,344,295 2,208,368 15 15
PPP loans 5,687 6,301 9,954 11,036 11,533 (39 ) (51 )
Commercial real estate
Residential construction 48,617 73,088 55,019 57,558 58,642 (133 ) (17 )
Commercial construction 2,065,775 1,984,240 1,866,701 1,748,607 1,729,937 16 19
Land 319,689 346,362 338,831 344,149 295,462 (31 ) 8
Office 1,656,109 1,675,286 1,585,312 1,566,748 1,455,417 (5 ) 14
Industrial 2,628,576 2,527,932 2,307,455 2,190,200 2,135,876 16 23
Retail 1,374,655 1,404,586 1,365,753 1,366,415 1,337,517 (8 ) 3
Multi-family 3,125,505 3,193,339 2,988,940 2,922,432 2,815,911 (8 ) 11
Mixed use and other 1,685,018 1,588,584 1,439,186 1,437,328 1,515,402 24 11
Home equity 445,028 427,043 356,313 340,349 343,976 17 29
Residential real estate
Residential real estate loans for investment 3,456,009 3,252,649 2,933,157 2,746,916 2,619,083 25 32
Residential mortgage loans, early buy-out eligible loans guaranteed by U.S. government agencies 114,985 92,355 88,503 90,911 92,780 97 24
Residential mortgage loans, early buy-out exercised loans guaranteed by U.S. government agencies 41,771 43,034 45,675 52,439 57,803 (12 ) (28 )
Total core loans $ 28,804,138 $ 28,363,712 $ 26,259,487 $ 25,402,132 $ 24,592,729 6 % 17 %
Niche loans:
Commercial
Franchise $ 1,268,521 $ 1,191,686 $ 1,150,460 $ 1,122,302 $ 1,092,532 26 % 16 %
Mortgage warehouse lines of credit 893,854 750,462 593,519 403,245 230,211 76 288
Community Advantage - homeowners association 525,446 501,645 491,722 475,832 452,734 19 16
Insurance agency lending 1,044,329 1,048,686 1,030,119 964,022 921,653 (2 ) 13
Premium Finance receivables
U.S. property & casualty insurance 6,447,625 6,253,271 6,142,654 6,113,993 5,983,103 12 8
Canada property & casualty insurance 824,417 878,410 958,099 826,026 920,426 (24 ) (10 )
Life insurance 8,147,145 7,996,899 7,962,115 7,872,033 7,877,943 7 3
Consumer and other 99,562 82,676 87,356 51,121 60,500 81 65
Total niche loans $ 19,250,899 $ 18,703,735 $ 18,416,044 $ 17,828,574 $ 17,539,102 12 % 10 %
Total loans, net of unearned income $ 48,055,037 $ 47,067,447 $ 44,675,531 $ 43,230,706 $ 42,131,831 8 % 14 %

(1) Annualized.

TABLE 2: DEPOSIT PORTFOLIO MIX AND GROWTH RATES

% Growth From
(Dollars in thousands) Dec 31,
2024
Sep 30,
2024
Jun 30,
2024
Mar 31,
2024
Dec 31,
2023
Sep 30,
2024 (1)
Dec 31, 2023
Balance:
Non-interest-bearing $ 11,410,018 $ 10,739,132 $ 10,031,440 $ 9,908,183 $ 10,420,401 25 % 9 %
NOW and interest-bearing demand deposits 5,865,546 5,466,932 5,053,909 5,720,947 5,797,649 29 1
Wealth management deposits (2) 1,469,064 1,303,354 1,490,711 1,347,817 1,614,499 51 (9 )
Money market 17,975,191 17,713,726 16,320,017 15,617,717 15,149,215 6 19
Savings 6,372,499 6,183,249 5,882,179 5,959,774 5,790,334 12 10
Time certificates of deposit 9,420,031 9,998,573 9,270,770 7,894,420 6,625,072 (23 ) 42
Total deposits $ 52,512,349 $ 51,404,966 $ 48,049,026 $ 46,448,858 $ 45,397,170 9 % 16 %
Mix:
Non-interest-bearing 22 % 21 % 21 % 21 % 23 %
NOW and interest-bearing demand deposits 11 11 11 12 13
Wealth management deposits (2) 3 3 3 3 4
Money market 34 34 34 34 33
Savings 12 12 12 13 13
Time certificates of deposit 18 19 19 17 14
Total deposits 100 % 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 December 31, 2024

(Dollars in thousands) Total Time
Certificates of
Deposit
Weighted-Average
Rate of Maturing
Time Certificates
of Deposit
1-3 months $ 3,301,111 4.52 %
4-6 months 3,743,113 4.31
7-9 months 1,422,013 3.87
10-12 months 595,058 3.48
13-18 months 129,136 2.93
19-24 months 55,456 2.52
24+ months 174,144 2.56
Total $ 9,420,031 4.20 %


TABLE 4
: QUARTERLY AVERAGE BALANCES

Average Balance for three months ended,
Dec 31, Sep 30, Jun 30, Mar 31, Dec 31,
(In thousands) 2024 2024 2024 2024 2023
Interest-bearing deposits with banks, securities purchased under resale agreements and cash equivalents (1) $ 3,934,016 $ 2,413,728 $ 1,485,481 $ 1,254,332 $ 1,682,176
Investment securities (2) 8,090,271 8,276,576 8,203,764 8,349,796 7,971,068
FHLB and FRB stock 271,825 263,707 253,614 230,648 204,593
Liquidity management assets (3) $ 12,296,112 $ 10,954,011 $ 9,942,859 $ 9,834,776 $ 9,857,837
Other earning assets (3)(4) 20,528 17,542 15,257 15,081 14,821
Mortgage loans held-for-sale 378,707 376,251 347,236 290,275 279,569
Loans, net of unearned income (3)(5) 47,153,014 45,920,586 43,819,354 42,129,893 41,361,952
Total earning assets (3) $ 59,848,361 $ 57,268,390 $ 54,124,706 $ 52,270,025 $ 51,514,179
Allowance for loan and investment security losses (367,238 ) (383,736 ) (360,504 ) (361,734 ) (329,441 )
Cash and due from banks 470,033 467,333 434,916 450,267 443,989
Other assets 3,642,949 3,563,296 3,294,066 3,244,137 3,388,348
Total assets $ 63,594,105 $ 60,915,283 $ 57,493,184 $ 55,602,695 $ 55,017,075
NOW and interest-bearing demand deposits $ 5,601,672 $ 5,174,673 $ 4,985,306 $ 5,680,265 $ 5,868,976
Wealth management deposits 1,430,163 1,362,747 1,531,865 1,510,203 1,704,099
Money market accounts 17,579,395 16,436,111 15,272,126 14,474,492 14,212,320
Savings accounts 6,288,727 6,096,746 5,878,844 5,792,118 5,676,155
Time deposits 9,702,948 9,598,109 8,546,172 7,148,456 6,645,980
Interest-bearing deposits $ 40,602,905 $ 38,668,386 $ 36,214,313 $ 34,605,534 $ 34,107,530
Federal Home Loan Bank advances 3,160,658 3,178,973 3,096,920 2,728,849 2,326,073
Other borrowings 577,786 622,792 587,262 627,711 633,673
Subordinated notes 298,225 298,135 410,331 437,893 437,785
Junior subordinated debentures 253,566 253,566 253,566 253,566 253,566
Total interest-bearing liabilities $ 44,893,140 $ 43,021,852 $ 40,562,392 $ 38,653,553 $ 37,758,627
Non-interest-bearing deposits 10,718,738 10,271,613 9,879,134 9,972,646 10,406,585
Other liabilities 1,563,824 1,631,389 1,601,485 1,536,039 1,785,667
Equity 6,418,403 5,990,429 5,450,173 5,440,457 5,066,196
Total liabilities and shareholders’ equity $ 63,594,105 $ 60,915,283 $ 57,493,184 $ 55,602,695 $ 55,017,075
Net free funds/contribution (6) $ 14,955,221 $ 14,246,538 $ 13,562,314 $ 13,616,472 $ 13,755,552

(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) See Table 18: Supplemental Non-GAAP Financial Measures/Ratios for additional information on this performance measure/ratio.
(4) Other earning assets include brokerage customer receivables and trading account securities.
(5) Loans, net of unearned income, include non-accrual loans.
(6) 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,
Dec 31, Sep 30, Jun 30, Mar 31, Dec 31,
(In thousands) 2024 2024 2024 2024 2023
Interest income:
Interest-bearing deposits with banks, securities purchased under resale agreements and cash equivalents $ 46,308 $ 32,885 $ 19,748 $ 16,677 $ 22,340
Investment securities 67,783 70,260 70,346 70,228 68,812
FHLB and FRB stock 5,157 5,451 4,974 4,478 3,792
Liquidity management assets (1) $ 119,248 $ 108,596 $ 95,068 $ 91,383 $ 94,944
Other earning assets (1) 310 282 235 198 222
Mortgage loans held-for-sale 5,623 6,233 5,434 4,146 4,318
Loans, net of unearned income (1) 791,390 796,637 752,117 712,587 697,093
Total interest income $ 916,571 $ 911,748 $ 852,854 $ 808,314 $ 796,577
Interest expense:
NOW and interest-bearing demand deposits $ 31,695 $ 30,971 $ 32,719 $ 34,896 $ 38,124
Wealth management deposits 9,412 10,158 10,294 10,461 12,076
Money market accounts 159,945 167,382 155,100 137,984 130,252
Savings accounts 38,402 42,892 41,063 39,071 36,463
Time deposits 106,934 110,616 96,527 77,120 68,475
Interest-bearing deposits $ 346,388 $ 362,019 $ 335,703 $ 299,532 $ 285,390
Federal Home Loan Bank advances 26,050 26,254 24,797 22,048 18,316
Other borrowings 7,519 9,013 8,700 9,248 9,557
Subordinated notes 3,733 3,712 5,185 5,487 5,522
Junior subordinated debentures 4,663 5,023 4,984 5,004 5,089
Total interest expense $ 388,353 $ 406,021 $ 379,369 $ 341,319 $ 323,874
Less: Fully taxable-equivalent adjustment (3,070 ) (3,144 ) (2,875 ) (2,801 ) (2,729 )
Net interest income (GAAP) (2) 525,148 502,583 470,610 464,194 469,974
Fully taxable-equivalent adjustment 3,070 3,144 2,875 2,801 2,729
Net interest income, fully taxable-equivalent (non-GAAP) (2) $ 528,218 $ 505,727 $ 473,485 $ 466,995 $ 472,703

(1) 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.
(2) 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,
Dec 31,
2024
Sep 30,
2024
Jun 30,
2024
Mar 31,
2024
Dec 31,
2023
Yield earned on:
Interest-bearing deposits with banks, securities purchased under resale agreements and cash equivalents 4.68 % 5.42 % 5.35 % 5.35 % 5.27 %
Investment securities 3.33 3.38 3.45 3.38 3.42
FHLB and FRB stock 7.55 8.22 7.89 7.81 7.35
Liquidity management assets 3.86 % 3.94 % 3.85 % 3.74 % 3.82 %
Other earning assets 6.01 6.38 6.23 5.25 5.92
Mortgage loans held-for-sale 5.91 6.59 6.29 5.74 6.13
Loans, net of unearned income 6.68 6.90 6.90 6.80 6.69
Total earning assets 6.09 % 6.33 % 6.34 % 6.22 % 6.13 %
Rate paid on:
NOW and interest-bearing demand deposits 2.25 % 2.38 % 2.64 % 2.47 % 2.58 %
Wealth management deposits 2.62 2.97 2.70 2.79 2.81
Money market accounts 3.62 4.05 4.08 3.83 3.64
Savings accounts 2.43 2.80 2.81 2.71 2.55
Time deposits 4.38 4.58 4.54 4.34 4.09
Interest-bearing deposits 3.39 % 3.72 % 3.73 % 3.48 % 3.32 %
Federal Home Loan Bank advances 3.28 3.29 3.22 3.25 3.12
Other borrowings 5.18 5.76 5.96 5.92 5.98
Subordinated notes 4.98 4.95 5.08 5.04 5.00
Junior subordinated debentures 7.32 7.88 7.91 7.94 7.96
Total interest-bearing liabilities 3.44 % 3.75 % 3.76 % 3.55 % 3.40 %
Interest rate spread (1)(2) 2.65 % 2.58 % 2.58 % 2.67 % 2.73 %
Less: Fully taxable-equivalent adjustment (0.02 ) (0.02 ) (0.02 ) (0.02 ) (0.02 )
Net free funds/contribution (3) 0.86 0.93 0.94 0.92 0.91
Net interest margin (GAAP) (2) 3.49 % 3.49 % 3.50 % 3.57 % 3.62 %
Fully taxable-equivalent adjustment 0.02 0.02 0.02 0.02 0.02
Net interest margin, fully taxable-equivalent (non-GAAP) (2) 3.51 % 3.51 % 3.52 % 3.59 % 3.64 %

(1) Interest rate spread is the difference between the yield earned on earning assets and the rate paid on interest-bearing liabilities.
(2) See Table 18: Supplemental Non-GAAP Financial Measures/Ratios for additional information on this performance measure/ratio.
(3) 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 twelve months ended,
Interest
for twelve months ended,
Yield/Rate
for twelve months ended,
(Dollars in thousands) Dec 31,
2024
Dec 31,
2023
Dec 31,
2024
Dec 31,
2023
Dec 31,
2024
Dec 31,
2023
Interest-bearing deposits with banks, securities purchased under resale agreements and cash equivalents (1) $ 2,276,818 $ 1,608,835 $ 115,618 $ 80,783 5.08 % 5.02 %
Investment securities (2) 8,229,846 7,721,661 278,617 240,837 3.39 3.12
FHLB and FRB stock 255,018 215,699 20,060 14,912 7.87 6.91
Liquidity management assets (3)(4) $ 10,761,682 $ 9,546,195 $ 414,295 $ 336,532 3.85 % 3.53 %
Other earning assets (3)(4)(5) 17,113 17,129 1,025 1,098 5.99 6.41
Mortgage loans held-for-sale 348,278 294,421 21,436 16,791 6.15 5.70
Loans, net of unearned income (3)(4)(6) 44,765,445 40,324,472 3,052,731 2,548,779 6.82 6.32
Total earning assets (4) $ 55,892,518 $ 50,182,217 $ 3,489,487 $ 2,903,200 6.24 % 5.79 %
Allowance for loan and investment security losses (368,342 ) (308,724 )
Cash and due from banks 455,708 468,298
Other assets 3,437,025 3,187,715
Total assets $ 59,416,909 $ 53,529,506
NOW and interest-bearing demand deposits $ 5,360,630 $ 5,626,277 $ 130,281 $ 122,074 2.43 % 2.17 %
Wealth management deposits 1,458,404 1,730,523 40,324 42,782 2.76 2.47
Money market accounts 15,946,363 13,665,248 620,411 429,900 3.89 3.15
Savings accounts 6,015,085 5,299,205 161,429 109,666 2.68 2.07
Time deposits 8,753,848 5,952,537 391,197 202,048 4.47 3.39
Interest-bearing deposits $ 37,534,330 $ 32,273,790 $ 1,343,642 $ 906,470 3.58 % 2.81 %
Federal Home Loan Bank advances 3,042,052 2,316,722 99,149 72,287 3.26 3.12
Other borrowings 603,868 630,115 34,480 35,280 5.71 5.60
Subordinated notes 360,802 437,604 18,117 22,023 5.02 5.03
Junior subordinated debentures 253,566 253,566 19,674 19,190 7.76 7.57
Total interest-bearing liabilities $ 41,794,618 $ 35,911,797 $ 1,515,062 $ 1,055,250 3.63 % 2.94 %
Non-interest-bearing deposits 10,212,088 11,018,596
Other liabilities 1,583,263 1,575,960
Equity 5,826,940 5,023,153
Total liabilities and shareholders’ equity $ 59,416,909 $ 53,529,506
Interest rate spread (4)(7) 2.61 % 2.85 %
Less: Fully taxable-equivalent adjustment (11,890 ) (10,086 ) (0.02 ) (0.02 )
Net free funds/contribution (8) $ 14,097,900 $ 14,270,420 0.92 0.83
Net interest income/margin (GAAP) (4) $ 1,962,535 $ 1,837,864 3.51 % 3.66 %
Fully taxable-equivalent adjustment 11,890 10,086 0.02 0.02
Net interest income/margin, fully taxable-equivalent (non-GAAP) (4) $ 1,974,425 $ 1,847,950 3.53 % 3.68 %

(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) 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.
(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) Interest rate spread is the difference between the yield earned on earning assets and the rate paid on interest-bearing liabilities.
(8) 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
Dec 31, 2024 (1.6 )% (0.6 )% (0.3 )% (1.5 )%
Sep 30, 2024 1.2 1.1 0.4 (0.9 )
Jun 30, 2024 1.5 1.0 0.6 (0.0 )
Mar 31, 2024 1.9 1.4 1.5 1.6
Dec 31, 2023 2.6 1.8 0.4 (0.7 )

Ramp Scenario +200 Basis
Points
+100 Basis
Points
-100 Basis
Points
-200 Basis
Points
Dec 31, 2024 (0.2 )% 0.0 % 0.0 % (0.3 )%
Sep 30, 2024 1.6 1.2 0.7 0.5
Jun 30, 2024 1.2 1.0 0.9 1.0
Mar 31, 2024 0.8 0.6 1.3 2.0
Dec 31, 2023 1.6 1.2 (0.3 ) (1.5 )

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 December 31, 2024 One year or
less
From one to
five years
From five to fifteen years After fifteen years Total
(In thousands)
Commercial
Fixed rate $ 419,733 $ 3,452,609 $ 2,001,276 $ 26,914 $ 5,900,532
Variable rate 9,673,183 836 9,674,019
Total commercial $ 10,092,916 $ 3,453,445 $ 2,001,276 $ 26,914 $ 15,574,551
Commercial real estate
Fixed rate $ 611,473 $ 2,842,450 $ 389,550 $ 60,813 $ 3,904,286
Variable rate 8,987,087 12,504 67 8,999,658
Total commercial real estate $ 9,598,560 $ 2,854,954 $ 389,617 $ 60,813 $ 12,903,944
Home equity
Fixed rate $ 9,106 $ 1,138 $ $ 20 $ 10,264
Variable rate 434,764 434,764
Total home equity $ 443,870 $ 1,138 $ $ 20 $ 445,028
Residential real estate
Fixed rate $ 12,157 $ 4,594 $ 76,321 $ 1,093,139 $ 1,186,211
Variable rate 90,855 584,092 1,751,607 2,426,554
Total residential real estate $ 103,012 $ 588,686 $ 1,827,928 $ 1,093,139 $ 3,612,765
Premium finance receivables - property & casualty
Fixed rate $ 7,179,672 $ 92,370 $ $ $ 7,272,042
Variable rate
Total premium finance receivables - property & casualty $ 7,179,672 $ 92,370 $ $ $ 7,272,042
Premium finance receivables - life insurance
Fixed rate $ 271,528 $ 318,470 $ 4,000 $ 4,451 $ 598,449
Variable rate 7,548,696 7,548,696
Total premium finance receivables - life insurance $ 7,820,224 $ 318,470 $ 4,000 $ 4,451 $ 8,147,145
Consumer and other
Fixed rate $ 32,507 $ 7,587 $ 927 $ 920 $ 41,941
Variable rate 57,621 57,621
Total consumer and other $ 90,128 $ 7,587 $ 927 $ 920 $ 99,562
Total per category
Fixed rate $ 8,536,176 $ 6,719,218 $ 2,472,074 $ 1,186,257 $ 18,913,725
Variable rate 26,792,206 597,432 1,751,674 29,141,312
Total loans, net of unearned income $ 35,328,382 $ 7,316,650 $ 4,223,748 $ 1,186,257 $ 48,055,037
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 $ 28,628,382
Variable Rate Loan Pricing by Index:
SOFR tenors (2) $ 18,029,528
12- month CMT (3) 6,355,203
Prime 3,388,920
Fed Funds 886,812
Other U.S. Treasury tenors 190,576
Other 290,273
Total variable rate $ 29,141,312

(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/4c8a617f-4b3c-41ee-9940-f8da8b036110

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 $14.9 billion tied to one-month SOFR and $6.4 billion tied to twelve-month CMT. The above chart shows:

Basis Point (bp) Change in
1-month
SOFR
12- month
CMT
Prime
Fourth Quarter 2024 (52 ) bps 18 bps (50 ) bps
Third Quarter 2024 (49 ) (111 ) (50 )
Second Quarter 2024 1 6 0
First Quarter 2024 (2 ) 24 0
Fourth Quarter 2023 3 (67 ) 0


TABLE 10
: ALLOWANCE FOR CREDIT LOSSES

Three Months Ended Years Ended
Dec 31, Sep 30, Jun 30, Mar 31, Dec 31, Dec 31, Dec 31,
(Dollars in thousands) 2024 2024 2024 2024 2023 2024 2023
Allowance for credit losses at beginning of period $ 436,193 $ 437,560 $ 427,504 $ 427,612 $ 399,531 $ 427,612 $ 357,936
Cumulative effect adjustment from the adoption of ASU 2022-02 741
Provision for credit losses - Other 16,979 6,787 40,061 21,673 42,908 85,500 114,390
Provision for credit losses - Day 1 on non-PCD assets acquired during the period 15,547 15,547
Initial allowance for credit losses recognized on PCD assets acquired during the period 3,004 3,004
Other adjustments (187 ) 30 (19 ) (31 ) 62 (207 ) 47
Charge-offs:
Commercial 5,090 22,975 9,584 11,215 5,114 48,864 15,713
Commercial real estate 1,037 95 15,526 5,469 5,386 22,127 15,228
Home equity 74