WINTRUST FINANCIAL CORP Q4 FY2024 earnings call

• Record net income of $695 million in 2024, up over 11.5% from 2023. - Fourth quarter net interest income up 4.5% QoQ and ~12% YoY. - Balanced loan and deposit growth of $1 billion each in the fourth quarter. - Credit metrics improved with non-performing loans and charge-offs down. - Treasury management and wealth businesses showed steady growth. - Emphasis on pricing and credit discipline contributing to margin and results going forward.

For the year, Wintrust reported record net income of $695 million, up over 11.5% from 2023. In the fourth quarter, net income was approximately $185.4 million. Net interest income increased 4.5% quarter-over-quarter and almost 12% versus last year's fourth quarter. Loans grew by $1 billion (8% annualized) and deposits by $1.1 billion (9% annualized). Loan-to-deposit ratio remained stable at roughly 91.5%. Non-interest bearing deposits were ~22% of total deposits. Treasury management and wealth businesses exhibited steady growth. Mortgage business had muted activity except for fair value related movements.

• Expect mid to high-single digit loan growth in 2025. - Net interest margin expected to remain around 3.5% throughout 2025. - Expense growth to be less than loan growth. - Confident in continued growth of the franchise with diverse businesses and ability to profitably grow.

• Competitive pressure leading to spread compression in loan pricing. - Impact of higher interest rates on commercial real estate valuations, particularly in the office category. - Effects of natural disasters on the premium finance portfolio, though minimal impact anticipated.

Q: Jon Arfstrom asked about loan growth sentiment and 2025 expectations.

A: Richard Murphy stated guidance is realistic, some CRE opportunities more price sensitive but not overly concerned, and noted they won't chase deals not appropriately paid for.

Q: Jeff Rulis inquired about expense management and M&A post Macatawa.

A: Dave Dykstra said they watch expenses closely, continue investing to support growth, and M&A appetite exists but is disciplined.

Q: Terry McEvoy asked about margin outlook and moats.

A: Timothy Crane and Richard Murphy discussed margin assumptions, and premium finance, leasing, and core C&I as moats.

Q: Nathan Race asked about capital management and mortgage margin.

A: David Dykstra talked about managing preferred series, and mortgage margin depends on rate changes.

Q: Chris McGratty asked about expense and Macatawa contribution.

A: David Dykstra and Timothy Crane discussed expense run rate and Macatawa's impact on NII.

Q: Benjamin Gerlinger asked about fee income and expense seasonality.

A: Timothy Crane talked about steady fee income growth and normal expense seasonality.

Q: Brendan Nosal asked about hedging and premium finance.

A: Timothy Crane and Richard Murphy discussed hedging strategy and premium finance performance.

Q: Jared Shaw asked about DDA growth and Macatawa accretion.

A: Timothy Crane and David Dykstra talked about DDA growth and Macatawa's impact on NII