In This Article:
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Full-Year Net Income: $695 million, up over 11.5% from 2023.
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Fourth-Quarter Net Income: Approximately $185.4 million.
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Net Interest Income: Increased by $22.6 million from the prior quarter.
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Net Interest Margin: 3.51%, stable compared to the prior quarter.
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Loan Growth: $1 billion for the quarter, 8% annualized.
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Deposit Growth: $1.1 billion for the quarter, 9% annualized.
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Total Assets: Grew approximately $1.1 billion to $64.9 billion.
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Provision for Credit Losses: $17 million in the fourth quarter, down from $22.3 million in the prior quarter.
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Non-Interest Income: Stable at approximately $113 million for the quarter.
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Non-Interest Expenses: Totaled $368.5 million, up approximately $7.9 million from the third quarter.
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Non-Performing Loans: Decreased from 38 basis points to 36 basis points of total loans.
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Charge-Offs: $15.9 million or 13 basis points, down from $26.7 million or 23 basis points in Q3.
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CRE Office Exposure: $1.7 billion, 12.8% of total CRE portfolio, 3.5% of total loan portfolio.
Release Date: January 22, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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Wintrust Financial Corp (NASDAQ:WTFC) reported record net income of $695 million for 2024, marking an 11.5% increase from 2023.
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The company achieved balanced growth in loans and deposits, each increasing by approximately $1 billion in the fourth quarter.
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Net interest income rose by 4.5% quarter over quarter and nearly 12% compared to the previous year's fourth quarter.
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Non-performing loans and charge-offs decreased relative to the previous quarter, indicating improved credit performance.
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WTFC's treasury management and wealth businesses continued to show steady growth, contributing to noninterest revenue expansion.
Negative Points
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The mortgage business remains relatively insignificant in terms of financial impact, with current activity muted.
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Acquisition-related costs and security losses were noted as uncommon items impacting the quarter's financials.
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There is increased competitive pressure in the market, particularly in the commercial real estate sector, affecting pricing and structure.
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Noninterest expenses increased by $7.9 million from the third quarter, partly due to acquisition-related costs and increased software expenses.
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The company faces challenges from a prolonged higher interest rate environment, particularly affecting commercial real estate valuations.
Q & A Highlights
Q: Can you discuss the competitive landscape and your expectations for loan growth in 2025? A: Richard Murphy, Vice Chairman and Chief Lending Officer, noted that while Wintrust has grown when others have not, there is increased competition, particularly in commercial real estate (CRE). The company remains committed to not chasing deals that don't meet their standards. They maintain their guidance for mid- to high single-digit loan growth, despite some headwinds.