Wintrust Financial (WTFC) Q1 2025 earnings summary

Executive summary

• Achieved record net income of $189 million ($2.69 per diluted share) in Q1 2025, up from Q4 2024, driven by strong loan and deposit growth and higher net interest income.

• Net interest income reached a record $526.5 million, with net interest margin improving to 3.56% (up 5 bps sequentially).

• Macatawa Bank acquisition completed, adding $2.9 billion in assets and $2.3 billion in deposits, contributing to growth and increased expenses.

• Asset quality remained stable, with disciplined credit management and allowance for credit losses at 1.37%.

• Diluted EPS rose to $2.69, and comprehensive income increased to $287.4 million, reflecting improved unrealized gains.

Financial highlights

• Net interest income rose to $526.5 million, up 13% year-over-year, with net interest margin at 3.54%–3.56%.

• Loan growth was $653 million (6% annualized), deposit growth $1.1 billion (8% annualized), and loan-to-deposit ratio about 91%.

• Non-interest income was $116.6 million, up $3.2 million sequentially but down 17% year-over-year due to prior year gains.

• Non-interest expense was $366.1 million, down $2.4 million sequentially but up 10% year-over-year, mainly from Macatawa-related costs.

• Return on average assets was 1.20%, and return on average tangible common equity was 14.72%.

Outlook and guidance

• Management expects continued solid loan growth and stable net interest margin, supported by a strong deposit base and diversified funding.

• Non-interest expenses anticipated to rise slightly in Q2 due to merit increases and higher marketing expenses.

• Macatawa integration is complete, with ongoing benefits to scale and market presence.

• Company remains focused on maintaining capital above well-capitalized levels and prudent liquidity management.

• Management remains optimistic about loan growth for the remainder of the year, despite macroeconomic uncertainties.