Slide 1: Earnings Release Presentation Q4 2024
Wintrust Financial Corporation Earnings Release Presentation Q4 2024
Slide 2: Forward Looking Statements
Forward Looking Statements This document contains forward-looking statements within the meaning of federal securities laws. Forward-looking information can be identified through the use of words such as “intend,” “plan,” “project,” “expect,” “anticipate,” “believe,” “estimate,” “contemplate,” “possi
Slide 3: Forward Looking Statements
Forward Looking Statements • adverse effects of failures by our vendors to provide agreed upon services in the manner and at the cost agreed, particularly our information technology vendors; • increased costs as a result of protecting our customers from the impact of stolen debit card information; •
Slide 4: Full Year 2024 Highlights (Comparative to Full Year 2023)
Full Year 2024 Highlights (Comparative to Full Year 2023) Net Income Pre-Tax, Pre-Provision1 Diluted EPS $695.0 million $1.0 billion $10.31 +$72 million or 12% +$89 million or 9% +$0.73 or 8% Net Interest Income Net Interest Margin BV / TBV (GAAP) (non-GAAP) (GAAP) (non-GAAP) $2.0 billion 3.51% 3.53
Slide 5: Q4 2024 Highlights (Comparative to Q3 2024)
Q4 2024 Highlights (Comparative to Q3 2024) Net Income Pre-Tax, Pre-Provision1 Diluted EPS $185.4 million $270.1 million $2.63 +$15.4 million +$15.0 million +$0.16 Return on Assets ROE / ROTCE Efficiency Ratio (GAAP) (non-GAAP) (GAAP) (non-GAAP) 1.16% 11.82% 14.29% 57.46% 57.18% +5 bps +19 bps +37 b
Slide 6: Earnings Summary
Earnings Summary Differentiated, highly diversified and sustainable business model Record Net Income for the Full Year 2024 Quarterly Pre-Tax Income, Excluding Provision for Credit Losses ($ in Millions) ($ in Millions) $187.3 $185.4 $170.0 $271.6 $270.1 $152.4 $251.4 $255.0 $123.5 1.35% $208.2 1.11
Slide 7: Loan Portfolio
Loan Portfolio Diversified loan portfolio Consistent Loan Growth Supported by Strong Loan Pipelines to Continue Momentum in 2025 Highlights ($ in Billions) $48.1 • Strong loan growth during the fourth quarter totaled $1.0 billion, or $47.1 8% on an annualized basis • Year-over-year loan growth of $5
Slide 8: Deposit Portfolio
Deposit Portfolio Enviable core deposit franchise in Chicago, Milwaukee and Grand Rapids market areas Deposit Growth Supported by Strong Core Franchise Highlights ($ in Billions) $52.5 $51.4 • Robust fourth quarter deposit growth totaling $1.1 billion or 9% annualized • Year-over-year deposit growth
Slide 9: Capital/Liquidity
Capital/Liquidity Current capital levels are well in excess of regulatory thresholds Capital Levels Remained Stable Supporting Strong Growth Steady CET1 Growth in 2024 Expected to Continue in 2025 CET1 Ratio 12.1% 12.2% 12.2% 9.8% 9.9% 9.4% 9.5% 9.5% 10.6% 10.6% 10.3% 9.8% 9.9% 9.4% 9.6% 9.4% 9.3% 1
Slide 10: Tangible Book Value Per Share (non-GAAP)
Tangible Book Value Per Share (non-GAAP) Wintrust has grown TBV Per Share every year since going public in 1996, and increased TBV Per Share to $75.39 as of December 31, 2024 $75.39 $70.33 $61.00 $59.64 $53.23 $49.70 $44.67 $41.68 $37.08 $32.45 $33.17 $29.28 $29.93 $26.72 $25.80 $23.22 $20.78 $18.97
Slide 11: Total Shareholder Return
Total Shareholder Return Wintrust's commitment to growing shareholder value is exemplified by outperforming the KBW Nasdaq Regional Banking Total Return Index (KRXTR) for each of the 1-year, 3-year, 5-year, and 10-year time periods Total Shareholder Return of WTFC Compared to KRXTR (1-Year) Total Sh
Slide 12: Net Interest Margin/Income
Net Interest Margin/Income Net interest margin remained within guidance range; strong earning asset growth drove net interest income higher Q4 2024 NII Boosted By Solid Organic Growth and Stable NIM Highlights ($ in Millions) $525.1 $502.6 • We believe we are well-positioned for strong financial per
Slide 13: Non-Interest Income
Non-Interest Income Diversified fee businesses supported non-interest income levels despite challenging mortgage environment Non-Interest Income Increased Primarily Due to MSR Valuation Adjustment Offset by Net Losses on Investment Securities Continued Strong Wealth Management Business ($ in Million
Slide 14: Non-Interest Expense
Non-Interest Expense Continue to manage our expenses and believe they are in line with Company growth Total Salaries and Benefits Expense Relatively Stable Quarter over Quarter as Q4 2024 Impacted by Three Months of Macatawa Expenses Efficiency Ratio Decreased as Income Outpaced Expense Growth ($ in
Slide 15: Credit Quality
Credit Quality Diversified business lines and strong credit management support stable credit quality Special Mention and Substandard Percentages Remained Stable Manageable Levels of Non-Performing Loans Quarter over Quarter ($ in Millions) ($ in Millions) 0.39% 0.38% 0.36% $45,715 $46,811 0.34% 0.33
Slide 16: Non-Performing Assets to Total Assets
Non-Performing Assets to Total Assets NPAs continue to normalize though still remain historically low 1.74% 1.58% 1.52% 1.30% 1.03% 0.85% 0.81% 0.62% 0.56% 0.51% 0.50% 0.45% 0.46% 0.48% 0.47% 0.44% 0.40% 0.41% 0.39% 0.36% 0.34% 0.34% 0.32% 0.29% 0.30% 0.27% 0.21% 0.16% 99 03 07 11 15 19 23 00 04 08
Slide 17: Credit Quality - Allowance for Loan Losses
Credit Quality - Allowance for Loan Losses The Company remains well-reserved Sufficient Allowance Coverage on Total Loan Portfolio Consistently Well-Reserved Across Our Core Loan Portfolio ($ in Billions) ($ in Billions) $48.1 $28.8 $47.1 $28.4 $44.7 $26.3 0.98% 0.93% 0.91% 1.52% 1.40% 1.36% 6/30/20
Slide 18: Credit Quality - Commercial Loans
Credit Quality - Commercial Loans Diversified portfolio with low net charge-offs Strong Loan Growth With Low Charge-off Levels Manageable Levels of Non-Performing Commercial Loans ($ in Millions) ($ in Millions) $15,575 $15,248 $73.6 0.61% $63.8 $14,154 $51.4 $13,503 $39.0 0.47% $12,832 $31.8 0.42%
Slide 19: Credit Quality - Commercial Real Estate Loans
Credit Quality - Commercial Real Estate Loans Well-diversified portfolio with a majority of its exposure in stabilized, income producing properties Steady Growth in Portfolio While Maintaining Sound Credit Standards NPLs Show Continued Improvement ($ in Millions) ($ in Millions) $12,793 $12,904 $48.
Slide 20: CRE Office Portfolio (as of 12/31/2024)
CRE Office Portfolio (as of 12/31/2024) CRE office represents a minimal percentage of the total loan portfolio As of As of CRE Office Portfolio Geography Portfolio Characteristics 9/30/2024 12/31/2024 ($ in Millions) Chicago CBD, 1 Other CBD, 12% 2 10% Balance ($ in Millions) $1,675 $1,656 CRE offic
Slide 21: Credit Quality Premium Finance Receivables - Life Insurance
Credit Quality Premium Finance Receivables - Life Insurance Life insurance portfolio remains steady and has continued to demonstrate exceptional credit quality Non-Performing Loans Increase Driven by a Single Relationship and Q4 2024 Balances Remained Consistent with Strong Credit Quality Overall Po
Slide 22: Premium Finance Receivables - Property and Casualty Insurance
Premium Finance Receivables - Property and Casualty Insurance Consistent Loan Growth Steady Levels of Non-Performing Loans ($ in Millions) ($ in Millions) $58.5 $55.1 $54.3 $6,940 $7,101 $7,132 $7,272 $47.7 $6,904 $44.8 0.59% 0.84% 0.78% 0.69% 0.76% 0.62% 0.32% 0.33% 0.29% 0.24% 12/31/2023 3/31/2024
Slide 23: Appendix
Appendix WINTRUST 23
Slide 24: Hedging Strategy Update
Hedging Strategy Update Use of Hedges to Mitigate Negative Impacts of Falling Rates Hedging activities had a 10 basis point unfavorable impact to our Q4 2024 NIM as compared to a 17 basis point unfavorable impact to our Q3 2024 NIM. These derivatives are expected to benefit the Company as one-month
Slide 25: Loan Portfolio
Loan Portfolio Highly diversified portfolio across U.S Loan Portfolio - Geographic Diversification1 (as of 12/31/2024) Canada: 2% 4% 5% 4% 2% 2% 3% 2% 2% 33% 8% 2% Primary Geographic Total Loan Portfolio Region Commercial: 2% Commercial, industrial and other Illinois/Wisconsin Leasing Nationwide 6%
Slide 26: Deposit Market Share and WTFC Midwest Branch Locations
Deposit Market Share and WTFC Midwest Branch Locations Chicago MSA 2024 Deposit 2023 Deposit 2022 Deposit 2021 Deposit Grand Rapids MSA 2024 Deposit 2023 Deposit 2022 Deposit 2021 Deposit (Sorted by 2024 Market Share Data) Market Share Market Share Market Share Market Share (Sorted by 2024 Market Sh
Slide 27: Glossary
Glossary Abbreviation Definition BOLI Bank Owned Life Insurance BP Basis Point BV Book Value per Common Share CBD Central Business District CET1 Ratio Common Equity Tier 1 Capital Ratio CRE Commercial Real Estate Diluted EPS Net Income per Common Share - Diluted FDIC Federal Deposit Insurance Corpor
Slide 28: Non-GAAP Reconciliation
Non-GAAP Reconciliation Three Months Ended Years Ended Reconciliation of non-GAAP Net Interest Margin and December 31, September 30, June 30, March 31, December 31, December 31, December 31, Efficiency Ratio ($ in Thousands): 2024 2024 2024 2024 2023 2024 2023 (A) Interest Income (GAAP) $913,501 $90
Slide 29: Non-GAAP Reconciliation
Non-GAAP Reconciliation Three Months Ended Years Ended September December 31, 30, June 30, March 31, December 31, December 31, December 31, Reconciliation of non-GAAP Return on Average Tangible 2024 2024 2024 2024 2023 2024 2023 Common Equity ($ in Thousands): (N) Net income applicable to common sha
Slide 30: Non-GAAP Reconciliation
Non-GAAP Reconciliation Three Months Ended December 31, September 30, June 30, March 31, December 31, Reconciliation of non-GAAP Tangible Common Equity 2024 2024 2024 2024 2023 (#039;s and Shares in Thousands): Total shareholders’ equity (GAAP) $6,344,297 $6,399,714 $5,536,628 $5,436,400 $5,399,526 Les