Company: WTFCN
Filing Date: 2025-05-05
Form Type: 10-Q
Source: 0001015328-25-000130
Chunk: 93

Company: WINTRUST FINANCIAL CORP
Filing Date: 2025-05-05
Form: 10-Q
Item: Item 1
Chunk 93
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 of employee stock option exercises and vesting of other shared-based awards. The Company recorded net excess tax benefits of $3.7 million in the first three months of 2025, compared to net excess tax benefits of $4.4 million in the first three months of 2024 related to share-based compensation.

Operating Segment Results 

The Company’s operations consist of three primary segments: community banking, specialty finance and wealth management. Refer to Note (13) “Segment Information” to the Consolidated Financial Statements in Item 1 of this report for further information on the Company’s primary segments. The Company’s profitability is primarily dependent on the net interest income, provision for credit losses, non-interest income and operating expenses of its community banking segment. 

The community banking segment’s net interest income for the quarter ended March 31, 2025 totaled $419.0 million as compared to $363.7 million for the same period in 2024, an increase of $55.3 million, or 15%. The increase in the first quarter of 2025, was primarily attributable to growth in average earning assets coupled with a relatively stable net interest margin. The community banking segment’s non-interest income totaled $73.5 million in the first quarter of 2025, a decrease of $1.1 million, or 2%, when compared to the first quarter of 2024 total of $74.6 million. The decrease in the three month period was primarily the result of decreased mortgage banking revenue due to the decreases in MSRs related to the change in fair value model assumptions and losses on investment securities, partially offset by increased service charges on deposit accounts. The community banking segment recorded provision for credit losses of $22.4 million for the three months ended March 31, 2025, compared to $20.4 million for the same period in 2024. The increase in provision for credit losses for the three month period was primarily the result of loan growth, coupled with a macroeconomic uncertainty qualitative overlay. Non-interest expenses increased by $32.8 million for the quarter ended March 31, 2025 compared to the same period in 2024, primarily because of higher salary, commissions, and incentive compensation. The community banking segment’s net income for the quarter ended March 31, 2025 totaled $134.3 million, an increase of $14.2 million as compared to net income in the first quarter of 2024 of $120.0 million.

The specialty finance segment’s net