Company: WTFCN
Filing Date: 2025-02-28
Form Type: 10-K
Source: 0001015328-25-000093
Chunk: 279

Company: WINTRUST FINANCIAL CORP
Filing Date: 2025-02-28
Form: 10-K
Item: Item 7
Chunk 279
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 earned by the community banking segment on deposit balances of customers of the wealth management segment to the wealth management segment. Finally, expenses incurred at the Wintrust parent company are allocated to each segment based on each segment’s risk-weighted assets.  

The community banking segment’s net interest income for the year ended December 31, 2024 totaled $1.5 billion as compared to $1.4 billion for the same period in 2023, an increase of $95.3 million, or 7%. The increase in 2024 compared to 2023 was primarily attributable to increased interest and fees on loans due to loan growth and increased interest rates, partially offset by increased interest expense on deposits. The community banking segment recorded a provision for credit losses of $88.3 million in 2024 compared to $104.9 million in 2023. The provision for credit losses decreased in 2024 compared to 2023 primarily due to improvements in the macroeconomic forecast partially offset by increased loan growth across portfolios including $15.5 million in Day 1 loan loss provision related to the acquisition of Macatawa. Non-interest income for the community banking segment increased $16.8 million, or 6% in 2024 when compared to 2023. The increase in non-interest income in 2024 compared to 2023 was primarily the result of increased mortgage banking revenue due to favorable fair value adjustments of MSRs, net of servicing hedge, and higher originations for sale.  Non-interest expenses increased by $65.5 million in 2024 compared to 2023, primarily because of higher salary, commissions, and incentive compensation. The community banking segment’s net income for the year ended December 31, 2024 totaled $458.7 million, an increase of $44.7 million, compared to net income of $414.1 million in 2023. The increase was primarily attributable to higher net interest income and a decrease in the provision for credit losses in 2024, as discussed above.

The specialty finance segment’s net interest income totaled $356.3 million for the year ended December 31, 2024, compared to $329.0 million in the same period of 2023, an increase of $27.2 million, or 8%. The increase in 2024 compared to 2023 was primarily attributable to loan growth and increased interest rates on the premium finance receivables portfolios. The specialty finance segment’s provision for credit losses totaled $12.