- Wintrust Financial (WTFC, Financial) reports record Q1 2025 net income of $189.0 million.
- Net interest margin increased by 5 basis points to 3.56%.
- Deposits grew by $1.1 billion (8% annualized) in Q1 2025.
Wintrust Financial Corporation (WTFC) announced record net income of $189.0 million, or $2.69 per diluted share, for the first quarter of 2025. This represents an improvement from the $185.4 million, or $2.63 per diluted share, reported in the fourth quarter of 2024.
The company's net interest margin improved by 5 basis points to 3.56%. This increase is attributed to decreased funding costs, particularly a 23 basis point decline in the interest-bearing deposit costs, which more than offset lower loan yields. As a result, net interest income reached a record $526.5 million in Q1 2025.
Deposits saw a significant increase of $1.1 billion, or 8% annualized, illustrating Wintrust's strong deposit-gathering capabilities. This growth in deposits outpaced the $653 million loan growth, improving the loans-to-deposits ratio to 90.9% and enhancing liquidity. Non-interest-bearing deposits made up 21% of total deposits, providing a valuable low-cost funding source.
Despite a rise in provision for credit losses to $24.0 million from $17.0 million in Q4 2024, credit quality remained stable. Net charge-offs decreased to 11 basis points of average total loans from 13 basis points. The company maintained non-performing assets at 0.30% of total assets, reflecting consistent underwriting standards and reserve building.
Wintrust's wealth management revenue faced challenges with a $4.7 million decrease attributed to system transitions and market conditions. Nevertheless, management remains confident in continuing the positive momentum, projecting solid loan growth and stable margins for Q2 2025, which should lead to higher net interest income.
