Wintrust Financial : 2024 Annual Report 2024 Shareholder Letter
WTFC
2024 SHAREHOLDERS' LETTER
DIFFERENT APPROACH, BETTER RESULTS®
The metrics presented below highlight the successful execution of our growth strategy, which drove Wintrust's 28th consecutive year of pro!tability, the robust expansion of our markets, and the continued di!erentiation of the service we provide to our customers.
PRE-TAX INCOME Excluding Provision for
TOTAL ASSETS
TOTAL DEPOSITS
TOTAL LOANS1
Credit Losses (Non-GAAP)2
4440
2220
5550
3330
1110 .2
02022
2020
2021
2023
2024
NET INCOME
1. Excluding loans held-for-sale.
2. See Appendix, "Non-GAAP Financial Measures/Ratios," for a reconciliation of certain non-GAAP performance measures and ratios used by the Company to evaluate and measure the
Company's performance to the most directly comparable GAAP !nancial measures.
3. As a % of average loans.
Dollars in thousands, except per share data. Years ended December 31,
2024
2023
2022
2021
2020
Total assets
Total loans
(excluding loans held-for-sale)
Total deposits
Junior subordinated debentures Total shareholders' equity
SELECTED STATEMENTS OF INCOME DATA
Net interest income
Net revenue1
Net income
Pre-tax income, excluding provision for credit losses (non-GAAP)2
Net income per common share - basic Net income per common share - diluted
SELECTED FINANCIAL RATIOS AND OTHER DATA
PERFORMANCE RATIOS
Net interest margin
Net interest margin - fully taxable equivalent (non-GAAP)2
Non-interest income to average assets
Non-interest expense to average assets Net overhead ratio3
Return on average assets
Return on average common equity
Return on average tangible common equity (non-GAAP)2
Average total assets
Average total shareholders' equity Average loans to average deposits ratio
COMMON SHARE DATA AT END OF YEAR
Market price per common share
Book value per common share2
Tangible book value per common share (non-GAAP)2
Common shares outstanding
OTHER DATA AT END OF YEAR
Tier 1 leverage ratio
Tier 1 capital ratio
Common Equity Tier 1 capital ratio Total capital ratio
Allowance for credit losses4
Allowance for loan and unfunded lending-related commitment losses to total loans
Non-performing loans Non-performing loans to total loans NUMBER OF
Banking o!ces
1. Net revenue includes net interest income and non-interest income.
2. See Appendix, "Non-GAAP Financial Measures/Ratios," for a reconciliation of certain non-GAAP performance measures and ratios used by the Company to evaluate and measure the Company's performance to the most directly comparable GAAP !nancial measures.
3. The net overhead ratio is calculated by netting total non-interest expense and total non-interest income and dividing by that period's total average assets. A lower ratio indicates a higher degree of e!ciency.
4. The allowance for credit losses includes both the allowance for loan losses and the allowance for unfunded lending-related commitments. E!ective January 1, 2020, the allowance for credit losses also includes the allowance for investment securities as a result of the adoption of Accounting Standard Update ("ASU") 2016-13, Financial Instruments - Credit Losses.
A Year of Disciplined Expansion and Committed Service
TO OUR SHAREHOLDERS, CUSTOMERS, COMMUNITY PARTNERS, AND EMPLOYEES
Wintrust has never been stronger than it is today. I am pleased to report that 2024 was a year of continued success and expansion. Our distinguished reputation and disciplined !nancial approach created robust opportunities for consistent growth throughout the year. We are the banking partner with unrivaled local market expertise and the expansive resources of a national bank.
We entered 2024 in a solid and enviable position, having prudently navigated the previous year's market and industry volatility. Our solid foundation stems from our thousands of dedicated employees, empowering us to provide unparalleled levels of service.
What was so appealing about Macatawa and this opportunity to advance the Wintrust mission into west Michigan was really the strength and security their culture provided and how they operated their bank .... It's a very, very strong bank. Thinking about its relationships and customer base - Macatawa is a really great !t for Wintrust.
Chris Woel!er
Market Head, Michigan, and Chairman of Macatawa Bank, N.A.
BUILDING ON OUR UNIQUE BRAND OF SERVICE
Since our founding in 1991, Wintrust has remained nimble and disciplined in seizing opportunities. We expand strategically to serve more clients and create value for our shareholders. We consistently review opportunities and act when they align with our customer focus and rigorous standards.
This year, we acquired Macatawa Bank Corporation as a strong partner, providing an ideal expansion platform into west Michigan. Macatawa has a strong core deposit base, exceptional asset quality, a client-focused culture, and a committed leadership team. Macatawa's customers will bene!t from an expanded array of products and services, and we are thrilled to welcome both Macatawa's clients and team members to the Wintrust family.
During the year, we also took organization-wide actions to enhance our diverse banking services, ensuring that we remain one of the most customer-friendly banks. These e!orts included:
• Enriching our digital o!erings to increase engagement. Digital consumer account openings increased 43% year-over-year in 2024, and our mobile banking app continues to be rated 4.8 out of 5 stars in the Apple iOS App Store. Our new Wintrust Digital Lending platform e!ciently supports our growing loan portfolio, driven by a seamless and exceptional experience for colleagues and clients.
• Opening new community banking locations to meet customer demand. In addition to our expansion into west Michigan, we continued our growth with new and relocated branch locations in Crown Point, Indiana; Mequon and Madison, Wisconsin; Chicago, Hawthorn Woods, Rockford, Machesney Park, and Wheeling, Illinois - all to support our customers' individual and business needs in these communities.
These strategic investments in our organization demonstrate our commitment to delivering market-leading solutions and exceptional customer experiences. We communicated these advancements through a marketing campaign, "Di!erent Approach, Better Results," highlighting the unique bene!ts of banking with Wintrust. We have served our customers using this approach for more than 33 years, and we know it resonates with them.
DEDICATED TO EXCELLENCE
We continue to be recognized for our outstanding customer service, product o!erings, and work culture. We take pride in these accolades and celebrate the more than 5,900 Wintrust employees who deserve the credit for these honors.
2022, 2023 & 2024
J.D. Power Ranked Wintrust #1 in Customer Satisfaction for Retail Banking in Illinois three years in a row.1
1. J.D. Power. For J.D. Power 2024 award information, visit jdpower.com/awards.
Wintrust was recognized as a leader in U.S. Middle
Market and Small Business Banking, winning multiple awards for the ninth straight year.2
2. Source. Coalition Greenwich
2023 Commercial Banking
Program, published
February 2024.
Wintrust Financial Corporation received this award from the Chicago Tribune, The Salt Lake Tribune, The San Diego Union-Tribune, Milwaukee
Journal Sentinel, Wisconsin State Journal, NJ.com, and USA TODAY.
Awarded Best
Coaching and Mentoring Program
for Wintrust's
Paired to Win mentoring program.
MEASURING OUR CONTINUED SUCCESS
Wintrust generated record net income in 2024, driven by the successful execution of our growth strategy. This approach resulted in the following year-over-year growth in 2024 compared to 2023:
• Net income increased by 12%
• Assets expanded by 15%
• Loans grew by 14%
• Deposits rose by 16%
We are proud of these results, and our underlying activity and pipelines remain strong. Wintrust now serves over 261,000 consumer banking households and 46,000 middle-market and small business clients. This is strong evidence that our model works, and we believe there is ample opportunity for continued market share growth.
In 2024, we marked our 28th consecutive year of pro!table operations and tangible book value growth. We grew loans by $5.9 billion during the year, including $1.4 billion from the Macatawa acquisition. Our loan growth remains well-balanced across all credit categories, illustrating the bene!ts of our diverse asset-generating businesses.
Deposits grew by more than $7.1 billion in 2024, including $2.3 billion from the Macatawa acquisition. Our loan and deposit growth also represents market share gains, contributing to our tangible book value per share increase this year.
As shown in the chart below, Wintrust's total shareholder returns outperformed the KBW Nasdaq Regional Banking Total Return Index (KRXTR) for each of the one-, two-, three-, !ve-, and 10-year periods.
1 Year
2 Year
3 Year
5 Year
10 Year
Wintrust
Financial Corporation
36.35%
51.44%
42.40%
85.66%
188.11%
Regional Banks*
13.20%
12.75%
4.93%
30.90%
100.32%
*KRXTR Index; Source: S&P Capital IQ.
Our results illustrate the resilience of our operating model through various economic cycles and our focus on building value for our shareholders, customers, employees, and communities.
WHERE YOU BANK MATTERS
Measured by deposits, we are the largest bank headquartered in Illinois.3 Our network of 16 nationally chartered banks combines the resources and technology of large banks with the community focus and client familiarity of local banks. Every day, we strive to exceed the expectations of our customer base - individuals, small- to mid-sized businesses, government entities, and institutions - through tailored client solutions and a comprehensive suite of personal and commercial banking and !nancial services products.
Our over 200 Wintrust Community Bank locations are the company's core and support our consumer, commercial, mortgage, and wealth management operations. Our branch footprint positions us to serve Chicagoland, southern Wisconsin, northwest Indiana, southwest Florida, and now west Michigan.
Our commercial banking activity spans all 50 states and Canada through our commercial banking, specialty !nance, and wealth management businesses. This year, our commercial banking teams expanded in the Midwest while further securing a foothold in Denver.
STRONG CREDIT PORTFOLIOS EMPOWER EXCEPTIONAL CUSTOMER SERVICE
Wintrust achieved substantial growth across all our major loan categories in 2024, even as many banks found loan growth elusive. For example, core commercial loans, commercial real estate, and residential loan portfolios experienced continued growth, underscoring the strength of our diversi!ed approach and our commitment to customers throughout all cycles.
Our mortgage team remained dedicated to our customers during this period of higher rates and low inventory. We released multiple new loan programs and enhanced our guidelines for existing programs to assist more borrowers in achieving homeownership in the current market.
Credit quality is a top priority. We are committed to prudent and consistent risk management through economic cycles with a conservative and disciplined approach to our average and maximum hold sizes relative to capital and credit exposure.
With holdings in Commercial & Industrial, Commercial Real Estate, Premium Finance, Leasing, and Mortgage Warehouse, we successfully balance our portfolio to ensure credit quality remains stable even when one sector may face headwinds due to market conditions. Additionally, we remain one of the top SBA lenders in the Midwest, providing small businesses with access to capital to fuel their growth.
WEALTH MANAGEMENT: GROWTH THROUGH CLIENT ACQUISITION AND NEW PARTNERSHIPS
Our Wealth Management team produced strong results during another eventful year in the markets. Assets Under Management and Administration surpassed $51 billion, the highest level in Wintrust's history. Strong equity markets and new client acquisitions helped drive asset growth.
3. Source: S&P Capital IQ.
28
Consecutive years of INCREASED VALUE FOR SHAREHOLDERS
(non-GAAP)
Wintrust's tangible book value per common share has increased every year since we became a public company in 1996.
Annual dividend increased
11
YEARS IN A ROW
$64.9B
$52.5B
DEEPLY ROOTED IN THE COMMUNITIES WE SERVE
Commitment to our communities is ingrained in every facet of our business. We strengthen ties through advice, service, !nancial products, business solutions, and our long tradition of community partnerships.
In 2024, more than 500 employees served on at least one local non-pro!t board, and our team members volunteered over 27,000 hours. Highlights included:
• Expanding our !nancial commitment to become the Chicago Stars FC's o!cial front-of-jersey and community outreach investment partner. This helped the women's professional soccer team double the number of camps and clinics they o!er to young female athletes across Chicagoland.
• Volunteering our time and know-how to Habitat for Humanity. Wintrust Mortgage employees helped build, rehabilitate, and repair homes in the Midwest and supported Veterans Build events in Chicagoland and San Diego.
Learn more in our annual Community Impact Report at wintrust.com/in-the-community.
MOVING FORWARD
Wintrust remains true to our values and mission. We take tremendous pride in being a disciplined and consistent partner for our clients, our communities, and our employees in order to create value for our shareholders.
We are a strong investment based on prudent growth, strategic transactions, disciplined balance sheet management, and judicious asset allocations. Our strategic execution is designed to ensure sustainable growth through varying economic cycles. Our consistent growth in market share and outperformance in total shareholder returns over multiple periods compared with our peers demonstrates our commitment to building longer-term franchise value.
Our employees and their steadfast commitment to excellence make all these accomplishments possible. As an inclusive organization with numerous opportunities for career advancement and professional satisfaction, it is an honor to see our employees !ourish in their roles and strive for greater responsibility and promotion.
I thank them for their e!orts to serve our customers in a way only Wintrust can.
We're o! to a strong start in 2025, and Wintrust is working hard for our customers daily. We will continue to innovate and expand to meet their needs, giving them choices on how they want to be served.
Thank you for your trust and support.
TIMOTHY S.CRANE
President & Chief Executive O!cer
APPENDIX: NON-GAAP FINANCIAL MEASURES/RATIOS
The accounting and reporting policies of Wintrust conform to generally accepted accounting principles ("GAAP") in the United States and prevailing practices in the banking industry. However, certain non-GAAP performance measures and ratios are used by management to evaluate and measure the Company's performance. These include taxable-equivalent net interest income (including its individual components), taxable-equivalent net interest margin (including its individual components), the taxable-equivalent e!ciency ratio, tangible common equity ratio, tangible book value per common share, return on average tangible common equity, and pre-tax income, excluding provision for credit losses. Management believes that these measures and ratios provide users of the Company's !nancial information a more meaningful view of the performance of the Company's interest-earning assets and interest-bearing liabilities and of the Company's operating e!ciency. Other !nancial holding companies may de!ne or calculate these measures and ratios di!erently.
Management reviews yields on certain asset categories and the net interest margin of the Company and its banking subsidiaries on a fully taxable-equivalent ("FTE") basis. In this non-GAAP presentation, net interest income is adjusted to re!ect tax-exempt interest income on an equivalent before-tax basis using tax rates e!ective as of the end of the period. This measure ensures comparability of net interest income arising from both taxable and tax-exempt sources. Net interest income on a FTE basis is also used in the calculation of the Company's e!ciency ratio. The e!ciency ratio, which is calculated by dividing non-interest expense by total taxable-equivalent net revenue (less securities gains or losses), measures how much it costs to produce one dollar of revenue. Securities gains or losses are excluded from this calculation to better match revenue from daily operations to operational expenses. Management considers the tangible common equity ratio and tangible book value per common share as useful measurements of the Company's equity. The Company references the return on average tangible common equity as a measurement of pro!tability. Management considers pre-tax income, excluding provision for credit losses, as a useful measurement of the Company's core net income.
The following table presents a reconciliation of certain non-GAAP performance measures and ratios used by the Company to evaluate and measure the Company's performance to the most directly comparable GAAP !nancial measures for the last three years. Reconciliation of such performance measures and ratios for the years ending December 31, 2021 and December 31, 2020 are available on pages 50 and 51 of the Company's Annual Report on Form 10-K for the year ended December 31, 2022.
Years Ended December 31,
(Dollars and shares in thousands, except per share data)
Reconciliation of Non-GAAP Net Interest Margin and E!ciency Ratio: (A) Interest income (GAAP)
Taxable-equivalent adjustment:
- Loans
- Liquidity management assets
- Other earning assets
(B) Interest income (non-GAAP)
(C) Interest expense (GAAP)
(D) Net interest income (GAAP) (A minus C)
(E) Net interest income, fully taxable-equivalent (non-GAAP) (B minus C)
Net interest margin (GAAP)
Net interest margin, fully taxable-equivalent (non-GAAP)
(F) Non-interest income
(G) (Losses) gains on investment securities, net
(H) Non-interest expense
E!ciency ratio (H/(D+F-G))
E!ciency ratio (non-GAAP) (H/(E+F-G))
Reconciliation of Non-GAAP Tangible Common Equity Ratio: Total shareholders' equity (GAAP)
Less: Non-convertible preferred stock (GAAP) Less: Acquisition-related intangible assets (GAAP)
(I) Total tangible common shareholders' equity (non-GAAP)
(J) Total assets (GAAP)
Less: Acquisition-related intangible assets (GAAP) (K) Total tangible assets (non-GAAP)
Common equity-to-assets ratio (GAAP) (L/J)
Tangible common equity ratio (non-GAAP) (I/K)
Reconciliation of Non-GAAP Tangible Book Value per Common Share: Total shareholders' equity (GAAP)
Less: Non-convertible preferred stock (GAAP)
(L) Total common equity
(M) Actual common shares outstanding
Book value per common share (L/M)
Tangible book value per common share (non-GAAP) (I/M)
Reconciliation of Non-GAAP Return on Average Tangible Common Equity: (N) Net income applicable to common shares
Add: Acquisition-related intangible asset amortization
Less: Tax e!ect of acquisition-related intangible asset amortization After-tax acquisition-related intangible asset amortization
(O) Tangible net income applicable to common shares (non-GAAP) Total average shareholders' equity
Less: Average preferred stock
(P) Total average common shareholders' equity Less: Average acquisition-related intangible assets
(Q) Total average tangible common shareholders' equity (non-GAAP)
Return on average common equity (N/P)
Return on average tangible common equity (non-GAAP) (O/Q)
Reconciliation of Non-GAAP Pre-Tax, Pre-Provision Income: Income before taxes
Add: Provision for credit losses
Pre-tax income, excluding provision for credit losses (non-GAAP)
2023
2022
$
2,893,114
$
1,747,443
7,827 3,619
2,249 1,977
10
5
$
2,903,200 1,055,250
$
1,753,044 252,081
1,837,864 1,495,362
1,847,950 1,500,963
3.66 % 3.68
3.15 % 3.17
$
434,106
$
461,053
(1,525)
(20,427)
1,312,499
1,177,271
57.81 %
59.55 %
57.55
59.38
$ 5,399,526
$ 4,796,838
(412,500) (412,500)
(679,561) (675,710)
$ $
4,307,465 56,259,934
$ $
3,708,628 52,949,649
(679,561)
(675,710)
$
55,580,373 8.9 % 7.7
$
52,273,939 8.3 % 7.1
$
5,399,526 (412,500)
$
4,796,838 (412,500)
$
4,987,026 61,244
$
4,384,338 60,794
$
81.43 $ 72.12
70.33 61.00
$
594,662 $ 481,718
5,498 6,116
(1,446) (1,664)
4,052
4,452
$ $
598,714 5,023,153 (412,500)
$
486,170
$ 4,634,224 (412,500)
$
4,610,653 (679,802)
$
4,221,724 (679,735)
$
3,930,851 12.90 % 15.23
$
3,541,989 11.41 % 13.73
$
845,081 $ 700,555
114,390 78,589
$
959,471
$
779,144
Disclaimer
Wintrust Financial Corporation published this content on April 04, 2025, and is solely responsible for the information contained herein. Distributed via , unedited and unaltered, on April 04, 2025 at 14:46 UTC.