In 2024, Wintrust Financial reported an outstanding financial year with a record net income of $695.0 million, representing an 11.6% increase from the previous year. The company's fourth-quarter performance was equally impressive, with net income rising by 9%. Key growth areas included specialty finance and equipment finance, driven by disciplined credit standards and strategic expansion. Notable achievements include significant growth in net interest income, loan and deposit portfolios, and asset base. Credit quality metrics also improved, reflecting prudent risk management practices.
The integration of Macatawa Bank in August 2024 significantly bolstered Wintrust’s geographic presence and diversified its revenue streams. Looking ahead, the company is well-positioned for continued growth, particularly in equipment finance and other specialized lending segments, with a stable net interest margin projected for 2025.
Strategic Expansion and Robust Financial Performance
Wintrust Financial demonstrated remarkable financial strength throughout 2024, with notable achievements across various metrics. The company achieved record net income of $695.0 million, marking an 11.6% increase from the previous year. In the fourth quarter alone, net income surged by 9%, underscoring the company's consistent growth trajectory. This success was fueled by strong performances in key areas such as net interest income, loan and deposit growth, and asset expansion.
The company's net interest income grew by $22.6 million to reach $525.1 million in Q4/24, driven by an 8% annualized increase in loans and a stable net interest margin of 3.49%. Total loans increased by $1.0 billion to $48.1 billion, supported by a diversified portfolio expansion. Deposits grew by $1.1 billion, outpacing loan growth and reducing the loans-to-deposits ratio to 91.5%. Total assets reached $64.9 billion, up 7% from the prior quarter. These figures highlight Wintrust's ability to maintain robust financial health while expanding its operations strategically.
Specialized Finance and Enhanced Risk Management
Wintrust's specialty finance unit played a crucial role in driving the company's success. The equipment finance portfolio, including capital leases and loans, expanded to $3.9 billion, up from $3.7 billion in the third quarter. Insurance premium financing originations reached $5.1 billion, with average balances increasing by $11.6 million over the same period. This growth underscores Wintrust's strategic focus on providing tailored financial solutions to industries requiring specialized lending services.
Credit quality metrics also reflected prudent risk management. Net charge-offs declined to $15.9 million in Q4, down from $26.7 million in Q3, representing an annualized 13 basis points of average total loans. Non-performing loans improved to 0.36% of total loans, demonstrating effective portfolio management and proactive issue resolution. The allowance for credit losses remained steady at $437.1 million, signaling a strong reserve position. Additionally, the acquisition of Macatawa Bank in August 2024 enhanced Wintrust's geographic footprint in west Michigan, contributing to a $1.1 billion increase in assets during Q4/24. The acquisition added $1.4 billion in loans and $2.3 billion in deposits, further diversifying the company's revenue base. With a stable net interest margin projected at 3.50% and strong loan pipelines, Wintrust is poised to build on its record-setting year, particularly in equipment finance and other specialty lending units.