Wintrust Financial Corporation Reports $695M Net Income for 2024, 12% Increase from 2023

Wintrust Financial Corporation reported net income of $695.0 million for the year ended December 31, 2024, a 12% increase compared to $622.6 million in 2023. Net revenue reached $2.45 billion, an 8% increase year-over-year, driven by a 7% rise in net interest income to $1.96 billion. This increase stemmed from an 11% growth in average earning assets, partially offset by a 15 basis point decline in the net interest margin to 3.51%. Non-interest income increased by 12% to $488.3 million, primarily due to a $20 million gain from the sale of the Retirement Benefits Advisors division and increased mortgage banking revenues. Non-interest expense rose by 7% to $1.4 billion, mainly due to increased salary and employee benefits and software and equipment expenses.

The company's loan portfolio expanded by 14% to $48.1 billion, driven by growth across several portfolios, including commercial, commercial real estate, premium finance receivables, and residential real estate. Total assets increased by 15% to $64.9 billion, while total deposits grew by 16% to $52.5 billion. Shareholders' equity increased by 17% to $6.3 billion. The allowance for loan and unfunded lending-related commitment losses increased to $437.1 million, representing 0.91% of total loans outstanding. Net charge-offs increased to $94.4 million in 2024 compared to $45.5 million in 2023. The balance of non-performing loans increased to $170.8 million, and other real estate owned increased to $23.1 million.

During 2024, Wintrust completed the acquisition of Macatawa Bank, adding 26 branch locations in west Michigan. The company also opened nine new branch locations in the Chicago metropolitan area and closed four. In the first quarter of 2024, Wintrust sold its Retirement Benefits Advisors division, resulting in a $20 million gain. In late January 2025, Wintrust Investments transitioned support of its wealth management business to LPL Financial, expecting to deregister as a broker-dealer and investment advisor by the end of 2025. The company employed 5,903 full-time equivalent employees as of December 31, 2024.

Wintrust's strategies to achieve strong net income included leveraging its internal loan pipeline, diversifying its loan portfolio, growing its deposit franchise, completing strategic acquisitions, investing in technology infrastructure, focusing on cost control, and expanding its direct leasing business. The company faces competition from various financial institutions, including national, regional, and community banks, credit unions, and non-bank financial companies. Wintrust highlighted risks related to economic conditions, competition, growth and acquisitions, legal and regulatory matters, lending operations, niche businesses, financial strength and liquidity, and general operations. The company's capital ratios exceeded well-capitalized standards as of December 31, 2024.

Wintrust's outlook is contingent upon various factors, including economic conditions, interest rate changes, competition, and regulatory developments. The company noted that its ability to pay dividends and repurchase shares depends on its receipt of dividends from subsidiaries and compliance with regulatory capital requirements. The company also discussed its approach to managing climate-related risks and its commitment to fostering an inclusive workplace. The company's common stock is traded on the Nasdaq Global Select Market under the symbol WTFC.