FULLTEXT DEL 2 AV 2
10-Q – 2026-05-06 – wtfc-20260331.htm
As of March 31, 2026, the Company had various interest rate collar, swap and floor derivatives designated as cash flow hedges of variable rate loans. When the relationship between the hedged item and hedging instrument is highly effective at achieving offsetting changes in cash flows attributable to the hedged risk, changes in the fair value of these cash flow hedges are recorded in accumulated other comprehensive income or loss and are subsequently reclassified to interest income as interest payments are made on such variable rate loans. The changes in fair value (net of tax) are separately disclosed in the Consolidated Statements of Comprehensive Income.
The table below provides details on these cash flow hedges, summarized by derivative type and maturity, as of March 31, 2026:
March 31, 2026
(In thousands) Notional Amount Fair Value
Asset (Liability)
Floor at 1-month CME Term SOFR September 2028 - December 2029
$ 450,000 $ 2,222
Interest rate collars at 1-month CME term SOFR October 2026 - September 2027
1,750,000 ( 5,505 )
Interest rate swaps at 1-month CME term SOFR (1)
July 2026 - March 2032
4,600,000 27,414
Total Cash Flow Hedges $ 6,800,000 $ 24,131
(1) The notional amount includes forward-starting swaps that are not yet effective.
In the first quarter of 2022, the Company terminated interest rate swap derivative contracts designated as cash flow hedges of variable rate deposits with a total notional value of $ 1.0 billion and a five-year term effective July 2022. At the time of termination, the fair value of the derivative contracts totaled an asset of $ 66.5 million, with such adjustments to fair value recorded in accumulated other comprehensive income or loss.
For all such terminations, as the hedged forecasted transactions (interest payments on variable rate deposits) are still expected to occur over the remaining term of such terminated derivatives, such adjustments will remain in accumulated other comprehensive income or loss and be reclassified as a reduction to interest expense on a straight-line basis over the original term of the terminated derivative contracts.
A rollforward of the amounts in accumulated other comprehensive income or loss related to interest rate derivatives designated as cash flow hedges, including such derivative contracts terminated during the period, follows:
Three Months Ended
(In thousands) March 31,
2026 March 31,
2025
Unrealized gain (loss) at beginning of period $ 67,112 $ ( 15,508 )
Amount reclassified from accumulated other comprehensive income or loss to interest income or expense on deposits, loans, and other borrowings ( 3,967 ) 5,746
Amount of (loss) gain recognized in other comprehensive income or loss ( 25,479 ) 52,327
Unrealized gain at end of period $ 37,666 $ 42,565
As of March 31, 2026, the Company estimated that during the next 12 months $ 25.4 million will be reclassified from accumulated other comprehensive income or loss as an increase to net interest income. Such estimate consists of $ 13.3 million reclassified as a reduction to interest expense on the terminated cash flow hedges discussed above and $ 12.1 million reclassified as an increase to interest income related to the interest rate collars, floors and swaps noted above that remain outstanding.
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Fair Value Hedges of Interest Rate Risk
Interest rate swaps designated as fair value hedges involve the payment of fixed amounts to a counterparty in exchange for the Company receiving variable payments over the life of the agreements without the exchange of the underlying notional amount. As of March 31, 2026, the Company had 13 interest rate swaps with an aggregate notional amount of $ 116.9 million that were designated as fair value hedges primarily associated with fixed rate commercial and industrial and commercial real estate loans as well as life insurance premium finance receivables.
For derivatives designated and that qualify as fair value hedges, the net gain or loss from the entire change in the fair value of the derivative instrument is recognized in the same income statement line item as the earnings effect, including the net gain or loss, of the hedged item (interest income earned on fixed rate loans) when the hedged item affects earnings.
The following amounts were recorded on the balance sheet related to cumulative basis adjustments for fair value hedges as of March 31, 2026:
(In thousands) March 31, 2026
Derivatives in Fair Value
Hedging Relationships
Location in the Statement of Condition Carrying Amount of the Hedged Assets/(Liabilities) Cumulative Amount of Fair Value Hedging Adjustment Included in the Carrying Amount of the Hedged Assets/(Liabilities) Cumulative Amount of Fair Value Hedging Adjustment Remaining for any Hedged Assets/(Liabilities) for which Hedge Accounting has been Discontinued
Interest rate swaps Loans, net of unearned income $ 111,536 $ ( 4,971 ) $ ( 25 )
Available-for-sale debt securities 415 ( 3 ) —
The following table presents the loss or gain recognized related to derivative instruments that are designated as fair value hedges for the respective period:
(In thousands)
Derivatives in Fair Value Hedging Relationships
Location of (Loss)/Gain Recognized
in Income on Derivative Three Months Ended
March 31, 2026
Interest rate swaps Interest and fees on loans $ —
Non-Designated Hedges
The Company does not use derivatives for speculative purposes. Derivatives not designated as accounting hedges are used to manage the Company’s economic exposure to interest rate movements and other identified risks but do not meet the strict hedge accounting requirements of ASC 815. Changes in the fair value of derivatives not designated in hedging relationships are recorded directly in earnings.
Interest Rate Derivatives— The Company has interest rate derivatives, including swaps and option products, resulting from a service the Company provides to certain qualified borrowers. The Company’s banking subsidiaries execute certain derivative products (typically interest rate swaps) directly with qualified commercial borrowers to facilitate their respective risk management strategies. For example, these arrangements allow the Company’s commercial borrowers to effectively convert a variable rate loan to a fixed rate. In order to minimize the Company’s exposure on these transactions, the Company simultaneously executes offsetting derivatives with third parties. In most cases, the offsetting derivatives have mirror-image terms, which result in the positions’ changes in fair value substantially offsetting through earnings each period. However, to the extent that the derivatives are not a mirror-image and because of differences in counterparty credit risk, changes in fair value will not completely offset resulting in some earnings impact each period. Changes in the fair value of these derivatives are included in other non-interest income. At March 31, 2026 and December 31, 2025, the Company had interest rate derivative transactions with an aggregate notional amount of approximately $ 15.5 billion and $ 15.2 billion, respectively, (all interest rate swaps and caps with customers and third parties) related to this program. At March 31, 2026 these interest rate derivatives had maturity dates ranging from April 2026 to August 2037.
Mortgage Banking Derivatives— These derivatives include interest rate lock commitments provided to customers to fund certain mortgage loans to be sold into the secondary market and forward commitments for the future delivery of such loans. It is the Company’s practice to enter into forward commitments for the future delivery of a portion of its residential mortgage loan production when interest rate lock commitments are entered into in order to economically hedge the effect of future changes in interest rates on its commitments to fund the loans as well as on its portfolio of mortgage loans held-for-sale. The Company’s
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mortgage banking derivatives have not been designated as being in hedge relationships. At March 31, 2026 and December 31, 2025, the Company had interest rate lock commitments with an aggregate notional amount of approximately $ 302.2 million and $ 161.9 million, and forward commitments to sell mortgage loans with an aggregate notional amount of approximately $ 481.5 million and $ 413.2 million, respectively. The fair values of these derivatives were estimated based on changes in mortgage rates from the dates of the commitments. Changes in the fair value of these mortgage banking derivatives are included in mortgage banking revenue.
Periodically, the Company will purchase mortgage and interest rate derivative contracts in which the Company elects to not designate such derivatives as hedging instruments. These contracts are designed primarily to economically hedge a portion of the fair value adjustments related to the Company’s mortgage servicing rights portfolio. The gain or loss associated with these derivative contracts is included in mortgage banking revenue. The Company held ten interest rate derivatives with an aggregate notional value of $ 327.0 million at March 31, 2026 and ten interest rate derivatives with an aggregate notional value of $ 362.0 million at December 31, 2025. At March 31, 2026, the Company had one to-be-announced forward-setting contract for mortgage-backed securities with an aggregate notional value of $ 56.0 million, for such purpose of economically hedging a portion of the fair value adjustment related to its mortgage servicing rights portfolio. At December 31, 2025, the Company had one such forward-setting contract with an aggregate notional value of $ 56.0 million.
Commodity Derivatives— The Company has commodity forward contracts resulting from a service the Company provides to certain qualified borrowers. The Company’s banking subsidiaries execute certain derivative products directly with qualified commercial borrowers to facilitate their respective risk management strategies. For example, these arrangements allow the Company’s commercial borrowers to effectively purchase or sell a given commodity at an agreed-upon price on an agreed-upon settlement date. In order to minimize the Company’s exposure on these transactions, the Company simultaneously executes offsetting derivatives with third parties. In most cases, the offsetting derivatives have mirror-image terms, which result in the positions’ changes in fair value substantially offsetting through earnings each period. However, to the extent that the derivatives are not a mirror-image and because of differences in counterparty credit risk, changes in fair value will not completely offset resulting in some earnings impact each period. Changes in the fair value of these derivatives are included in other non-interest income. At March 31, 2026 and December 31, 2025, the Company had commodity derivative transactions with an aggregate notional amount of approximately $ 6.3 million and $ 4.1 million, respectively, (all forward contracts with customers and third parties) related to this program. At March 31, 2026, these commodity derivatives had maturity dates ranging from April 2026 to October 2027.
Foreign Currency Derivatives— The Company has foreign currency derivative contracts resulting from a service the Company provides to certain qualified customers. The Company’s banking subsidiaries execute certain derivative products directly with qualified customers to facilitate their respective risk management strategies related to foreign currency fluctuations. For example, these arrangements allow the Company’s customers to effectively exchange the currency of one country for the currency of another country at an agreed-upon price on an agreed-upon settlement date. In order to minimize the Company’s exposure on these transactions, the Company simultaneously executes offsetting derivatives with third parties. In most cases, the offsetting derivatives have mirror-image terms, which result in the positions’ changes in fair value substantially offsetting through earnings each period. However, to the extent that the derivatives are not a mirror-image and because of differences in counterparty credit risk, changes in fair value will not completely offset resulting in some earnings impact each period. Changes in the fair value of these derivatives are included in other non-interest income. As of March 31, 2026 and December 31, 2025, the Company held foreign currency derivatives with an aggregate notional amount of approximately $ 63.0 million and $ 84.0 million, respectively.
Other Derivatives— Periodically, the Company will sell options to a bank or dealer for the right to purchase certain securities held within the banks’ investment portfolios (covered call options). These option transactions are designed to increase the total return associated with the investment securities portfolio. These options do not qualify as accounting hedges pursuant to ASC 815 and, accordingly, changes in the fair value of these contracts are recognized as other non-interest income. There were no covered call options outstanding as of March 31, 2026, December 31, 2025 or March 31, 2025.
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Amounts included in the Consolidated Statements of Income related to derivative instruments not designated in hedge relationships were as follows:
(In thousands) Three Months Ended
Derivative Location in income statement March 31,
2026 March 31,
2025
Interest rate swaps and caps Trading gains (losses), net $ ( 48 ) $ ( 117 )
Mortgage banking derivatives Mortgage banking 2,502 3,641
Commodity contracts Trading gains (losses), net ( 15 ) 114
Foreign exchange contracts Trading gains (losses), net 55 8
Covered call options Fees from covered call options 4,669 3,446
Derivative contract held as economic hedge on MSRs Mortgage banking ( 900 ) 4,897
Credit Risk
Derivative instruments have inherent risks, primarily market risk and credit risk. Market risk is associated with changes in the value of an underlying asset. Credit risk relates to the risk that the counterparty will fail to perform according to the terms of the agreement. The Company is exposed to the credit risk of its commercial borrowers and third party financial institutions who are counterparties to interest rate derivatives with the Company.
The counterparty credit risk associated with the mirror-image swaps executed with third party financial institutions is monitored and managed as part of the Company’s overall asset-liability management process, except that the counterparty credit risk related to derivatives entered into with certain qualified borrowers is managed through the Company’s standard loan underwriting process for commercial borrowers since these derivatives typically share in the collateral provided by the loan agreements.
When deemed necessary, appropriate types and amounts of collateral are obtained to minimize credit exposure. The Company hedges the market risk of derivatives transactions with commercial borrowers by entering into offsetting transactions with large, highly rated financial institutions. These exposures are generally secured by cash under bilateral Credit Support Annexes, which are a component of the International Swaps and Derivatives Association (“ISDA”) Master Agreements executed with counterparties.
Aggregate counterparty exposures are monitored against various types of credit limits established to contain risk within parameters. Counterparty credit risk is managed by the Counterparty Credit Risk Management team in accordance with Supervision & Regulatory 11-10, Interagency Counterparty Credit Risk Management Guidance , which was issued in 2011 in response to the financial crisis of 2008. The guidance addresses counterparty credit risk governance, measurement, management, and systems. Specifically, counterparty risk is managed through the establishment and regular review of exposure limits, formalization of limits in policy and procedure, ongoing review of models, and having a single platform to allow for the timely aggregation of exposures. The Counterparty Credit Risk Management team uses a variety of approaches to monitor counterparty financial performance, including monitoring of credit exposure versus limits, use of early warning reports, and daily and intraday monitoring of financial developments.
The Company has agreements with certain of its interest rate derivative counterparties that contain cross-default provisions, which provide that if the Company defaults on any of its indebtedness, including default where repayment of the indebtedness has not been accelerated by the lender, then the Company could also be declared in default on its derivative obligations. The Company also has agreements with certain of its derivative counterparties that contain a provision allowing the counterparty to terminate the derivative positions if the Company fails to maintain its status as a well or adequately capitalized institution, which would require the Company to settle its obligations under the agreements. If the Company were to breach any of these provisions, at a time when the derivatives subject to such agreements are in a liability position, and the derivatives were to be terminated as a result, the Company would be required to settle its obligations under the agreements at the termination value and would be required to pay any additional amounts due in excess of amounts previously posted as collateral with the respective counterparty. As of March 31, 2026, there were $ 1.9 million of derivatives that were subject to such agreements in a net liability position.
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The Company records interest rate derivatives subject to master netting agreements at their gross value and does not offset derivative assets and liabilities on the Consolidated Statements of Condition. The table below summarizes the Company’s interest rate derivatives and offsetting positions as of the dates shown.
Derivative Assets Derivative Liabilities
Fair Value Fair Value
(In thousands) March 31,
2026 December 31,
2025 March 31,
2025 March 31,
2026 December 31,
2025 March 31,
2025
Gross Amounts Recognized $ 141,973 $ 175,534 $ 196,696 $ 114,504 $ 120,604 $ 176,588
Gross amounts not offset in the Statements of Condition
Offsetting Derivative Positions ( 48,674 ) ( 60,108 ) ( 62,237 ) ( 48,674 ) ( 60,108 ) ( 62,237 )
Collateral Posted ( 32,143 ) ( 46,894 ) ( 72,060 ) ( 1,890 ) ( 1,963 ) —
Net Credit Exposure $ 61,156 $ 68,532 $ 62,399 $ 63,940 $ 58,533 $ 114,351
(15) Fair Value of Assets and Liabilities
The Company measures, monitors and discloses certain of its assets and liabilities on a fair value basis. These financial assets and financial liabilities are measured at fair value in three levels, based on the markets in which the assets and liabilities are traded and the observability of the inputs used to determine fair value. These levels are:
• Level 1—unadjusted quoted prices in active markets for identical assets or liabilities.
• Level 2 — inputs other than quoted prices included in Level 1 that are observable for the asset or liability, either directly or indirectly. These include quoted prices for similar assets or liabilities in active markets, quoted prices for identical or similar assets or liabilities in markets that are not active, inputs other than quoted prices that are observable for the asset or liability or inputs that are derived principally from or corroborated by observable market data by correlation or other means.
• Level 3—significant unobservable inputs that reflect the Company’s own assumptions that market participants would use in pricing the assets or liabilities. Level 3 assets and liabilities include financial instruments whose value is determined using pricing models, discounted cash flow methodologies, or similar techniques, as well as instruments for which the determination of fair value requires significant management judgment or estimation.
A financial instrument’s categorization within the above valuation hierarchy is based upon the lowest level of input that is significant to the fair value measurement. The Company’s assessment of the significance of a particular input to the fair value measurement in its entirety requires judgment, and considers factors specific to the assets or liabilities. The following is a description of the valuation methodologies used for the Company’s assets and liabilities measured at fair value on a recurring basis.
Available-for-sale debt securities, trading account securities and equity securities with readily determinable fair value —Fair values for available-for-sale debt securities, trading account securities and equity securities with readily determinable fair value are typically based on prices obtained from independent pricing vendors. Securities measured with these valuation techniques are generally classified as Level 2 of the fair value hierarchy. Typically, standard inputs such as benchmark yields, reported trades for similar securities, issuer spreads, benchmark securities, bids, offers and reference data including market research publications are used to determine the fair value of these securities. When these inputs are not available, broker/dealer quotes may be obtained by the vendor to determine the fair value of the security. We review the vendor’s pricing methodologies to determine if observable market information is being used, versus unobservable inputs. Fair value measurements using significant inputs that are unobservable in the market due to limited activity or a less liquid market are classified as Level 3 in the fair value hierarchy. The fair value of U.S. Treasury securities and certain equity securities with readily determinable fair value are based on unadjusted quoted prices in active markets for identical securities. As such, these securities are classified as Level 1 in the fair value hierarchy.
The Company’s Investment Operations Department is responsible for the valuation of Level 3 available-for-sale debt securities. The methodology and variables used as inputs in pricing Level 3 securities are derived from a combination of observable and unobservable inputs. The unobservable inputs are determined through internal assumptions that may vary from period to period due to external factors, such as market movement and credit rating adjustments.
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At March 31, 2026, the Company classified $ 114.2 million of municipal securities as Level 3. These municipal securities are bond issuances for various municipal government entities primarily located in the Chicago metropolitan area, southern Wisconsin and west Michigan and are privately placed, non-rated bonds without CUSIP numbers. The Company’s methodology for pricing these securities focuses on three distinct inputs: equivalent rating, yield and other pricing terms. To determine the rating for a given non-rated investment debt security, the Investment Operations Department references a rated, publicly issued bond by the same issuer if available. A reduction is then applied to the rating obtained from the comparable bond, as the Company believes if liquidated, a non-rated bond would be valued less than a similar bond with a verifiable rating. The reduction applied by the Company is one complete rating grade (i.e., a “AA” rating for a comparable bond would be reduced to “A” for the Company’s valuation). For bond issuances without comparable bond proxies, a rating of “BBB” was assigned. In the first quarter of 2026, all of the ratings derived by the Investment Operations Department using the above process were “BBB” or better. The fair value measurement noted above is sensitive to the rating input, as a higher rating typically results in an increased valuation. The remaining pricing inputs used in the bond valuation are observable. Based on the rating determined in the above process, Investment Operations obtains a corresponding current market yield curve available to market participants. Other terms including coupon, maturity date, redemption price, number of coupon payments per year, and accrual method are obtained from the individual bond term sheets. Certain municipal bonds held by the Company at March 31, 2026 are continuously callable. When valuing these bonds, the fair value is capped at par value as the Company assumes a market participant would not pay more than par for a continuously callable bond.
Mortgage loans held-for-sale —The fair value of mortgage loans held-for-sale is typically determined by reference to investor price sheets for loan products with similar characteristics. Loans measured with this valuation technique are classified as Level 2 in the fair value hierarchy.
At March 31, 2026, the Company classified $ 52.5 million of certain delinquent mortgage loans held-for-sale as Level 3. For such delinquent loans in which investor interest may be limited, the Company estimates fair value by discounting future scheduled cash flows for the specific loan through its life, adjusted for estimated credit losses. The Company uses a discount rate based on prevailing market coupon rates on loans with similar characteristics. The assumed weighted average discount rate used as an input to value these loans at March 31, 2026 was 5.63 %. The higher the rate utilized to discount estimated future cash flows, the lower the fair value measurement. Additionally, the weighted average credit discount used as an input to value the specific loans was 0.52 % with credit loss discount ranging from 0 %- 37 % at March 31, 2026.
Loans held-for-investment —The fair value of loans held-for-investment is typically determined by reference to investor price sheets for loan products with similar characteristics. Loans measured with this valuation technique are classified as Level 2 in the fair value hierarchy.
The fair value for certain loans in which the Company previously elected the fair value option is estimated by discounting future scheduled cash flows for the specific loan through maturity, adjusted for estimated credit losses and prepayment or life assumptions. These loans primarily consist of early buyout loans guaranteed by U.S. government agencies that are delinquent and, as a result, investor interest may be limited. The Company uses a discount rate based on the actual coupon rate of the underlying loan. At March 31, 2026, the Company classified $ 55.4 million of loans held-for-investment carried at fair value as Level 3. The assumed weighted average discount rate used as an input to value these loans at March 31, 2026 was 6.13 %. The higher the rate utilized to discount estimated future cash flows, the lower the fair value measurement. As noted above, the fair value estimate also includes assumptions of prepayment speeds and average life as well as credit losses. The weighted average prepayments speed used as an input to value current loans was 9.26 % at March 31, 2026. Prepayment speeds are inversely related to the fair value of these loans as an increase in prepayment speeds results in a decreased valuation. For delinquent loans in which performance is not assumed and there is a higher probability of resolution of the loan ending in foreclosure, the weighted average life of such loans was 5.2 years. Average life is inversely related to the fair value of these loans as an increase in estimated life results in a decreased valuation. Additionally, the weighted average credit discount used as an input to value the specific loans was 1.65 % with credit loss discounts ranging from 0 %- 55 % at March 31, 2026.
MSRs —Fair value for MSRs is determined utilizing a valuation model which calculates the fair value of each servicing right based on the present value of estimated future cash flows. The Company uses a discount rate commensurate with the risk associated with each servicing right, given current market conditions. At March 31, 2026, the Company classified $ 195.3 million of MSRs as Level 3. The weighted average discount rate used as an input to value the pool of MSRs at March 31, 2026 was 9.83 % with discount rates applied ranging from 9 %- 12 %. The higher the rate utilized to discount estimated future cash flows, the lower the fair value measurement. The fair value of MSRs was also estimated based on other assumptions including prepayment speeds and the cost to service. Prepayment speeds ranged from 3 %- 84 % or a weighted average prepayment speed of 10.05 %. Further, for current and delinquent loans, the Company assumed a weighted average cost of servicing of $ 76 and $ 399 , respectively, per loan. Prepayment speeds and the cost to service are both inversely related to the fair value of MSRs as
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an increase in prepayment speeds or the cost to service results in a decreased valuation. See Note (9) “Mortgage Servicing Rights (“MSRs”)” in Item 1 of this report for further discussion of MSRs.
Derivative instruments —The Company’s derivative instruments include swaps, collars and purchased options such as caps and floors, commitments to fund mortgages for sale into the secondary market (interest rate locks), forward commitments to end investors for the sale of mortgage loans, commodity future contracts and foreign currency contracts. Swaps, collars and purchased options such as caps and floors and commodity future contracts are valued by a third party, using models that primarily use market observable inputs, such as yield curves and commodity prices prevailing at the measurement date, and are classified as Level 2 in the fair value hierarchy. The credit risk associated with derivative financial instruments that are subject to master netting agreements is measured on a net basis by counterparty portfolio. The fair value for mortgage-related derivatives is based on changes in mortgage rates from the date of the commitments. The fair value of foreign currency derivatives is computed based on change in foreign currency rates stated in the contract compared to those prevailing at the measurement date.
At March 31, 2026, the Company classified $ 4.5 million of derivative assets related to interest rate locks as Level 3. The fair value of interest rate locks is based on prices obtained for loans with similar characteristics from third parties, adjusted for the pull-through rate, which represents the Company’s best estimate of the likelihood that a committed loan will ultimately fund. The weighted-average pull-through rate at March 31, 2026 was 87.31 % with pull-through rates applied ranging from 12 % to 100 %. Pull-through rates are directly related to the fair value of interest rate locks as an increase in the pull-through rate results in an increased valuation.
Nonqualified deferred compensation assets —The underlying assets relating to the nonqualified deferred compensation plan are included in a trust and primarily consist of non-exchange traded institutional funds which are priced based by an independent third party service. These assets are classified as Level 2 in the fair value hierarchy.
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The following tables present the balances of assets and liabilities measured at fair value on a recurring basis for the periods presented:
March 31, 2026
(In thousands) Total Level 1 Level 2 Level 3
Available-for-sale securities
U.S. Treasury $ 5,014 $ 5,014 $ — $ —
U.S. government agencies 46,969 — 46,969 —
Municipal 174,259 — 60,074 114,185
Corporate notes 77,597 — 77,597 —
Mortgage-backed 6,940,443 — 6,940,443 —
Equity securities with readily determinable fair value 63,786 55,720 8,066 —
Mortgage loans held-for-sale 383,405 — 330,932 52,473
Loans held-for-investment 150,470 — 95,113 55,357
MSRs 195,276 — — 195,276
Nonqualified deferred compensation assets 17,630 — 17,630 —
Derivative assets 152,851 — 148,326 4,525
Total $ 8,207,700 $ 60,734 $ 7,725,150 $ 421,816
Derivative liabilities $ 118,937 $ — $ 118,937 $ —
December 31, 2025
(In thousands) Total Level 1 Level 2 Level 3
Available-for-sale securities
U.S. Treasury $ 7,035 $ 7,035 $ — $ —
U.S. government agencies 47,471 — 47,471 —
Municipal 162,166 — 62,563 99,603
Corporate notes 77,295 — 77,295 —
Mortgage-backed 5,942,296 — 5,942,296 —
Equity securities with readily determinable fair value 63,770 55,704 8,066 —
Mortgage loans held-for-sale 340,745 — 286,931 53,814
Loans held-for-investment 151,590 — 95,390 56,200
MSRs 195,023 — — 195,023
Nonqualified deferred compensation assets 18,112 — 18,112 —
Derivative assets 179,667 — 176,251 3,416
Total $ 7,185,170 $ 62,739 $ 6,714,375 $ 408,056
Derivative liabilities $ 123,774 $ — $ 123,774 $ —
March 31, 2025
(In thousands) Total Level 1 Level 2 Level 3
Available-for-sale securities
U.S. Treasury $ 12,994 $ 12,994 $ — $ —
U.S. government agencies 45,944 — 45,944 —
Municipal 188,149 — 66,305 121,844
Corporate notes 81,435 — 81,435 —
Mortgage-backed 3,891,783 — 3,891,783 —
Equity securities with readily determinable fair value 270,442 262,376 8,066 —
Mortgage loans held-for-sale 316,804 — 260,480 56,324
Loans held-for-investment 126,521 — 92,519 34,002
MSRs 196,307 — — 196,307
Nonqualified deferred compensation assets 16,396 — 16,396 —
Derivative assets 204,257 — 198,764 5,493
Total $ 5,351,032 $ 275,370 $ 4,661,692 $ 413,970
Derivative liabilities $ 181,198 $ — $ 181,198 $ —
The aggregate remaining contractual principal balance outstanding as of March 31, 2026, December 31, 2025 and March 31, 2025 for mortgage loans held-for-sale measured at fair value under ASC 825 was $ 387.9 million, $ 343.3 million and $ 319.6 million, respectively, while the aggregate fair value of mortgage loans held-for-sale was $ 383.4 million, $ 340.7 million and
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$ 316.8 million, for the same respective periods, as shown in the above tables. At March 31, 2026, $ 900,000 of mortgage loans held-for-sale were classified as nonaccrual compared to $ 700,000 as of December 31, 2025 and $ 2.8 million as of March 31, 2025. Additionally, there were $ 51.9 million of loans past due greater than 90 days and still accruing in the mortgage loans held-for-sale portfolio as of March 31, 2026 compared to $ 53.1 million as of December 31, 2025 and $ 56.2 million as of March 31, 2025. All of the nonaccrual loans and loans past due greater than 90 days and still accruing within the mortgage loans held-for-sale portfolio at March 31, 2026, December 31, 2025, and March 31, 2025 were individual delinquent mortgage loans bought back from GNMA at the unconditional option of the Company as servicer for those loans.
The aggregate remaining contractual principal balance outstanding as of March 31, 2026, December 31, 2025 and March 31, 2025 for loans held-for-investment measured at fair value under ASC 825 was $ 146.1 million, $ 148.1 million and $ 126.5 million, respectively, while the aggregate fair value of loans held-for-investment was $ 150.5 million, $ 151.6 million and $ 126.5 million, respectively, as shown in the above tables.
The changes in Level 3 assets measured at fair value on a recurring basis during the three months ended March 31, 2026 and 2025 are summarized as follows:
Mortgage loans held-for-sale Loans held-for- investment Mortgage
servicing rights Derivative assets
(In thousands) Municipal
Balance at January 1, 2026 $ 99,603 $ 53,814 $ 56,200 $ 195,023 $ 3,416
Total net (losses) gains included in:
Net income (1)
— ( 122 ) 75 253 1,109
Other comprehensive income or loss ( 4,018 ) — — — —
Purchases 24,142 — — — —
Settlements ( 5,542 ) ( 13,405 ) ( 14,247 ) — —
Net transfers into Level 3
— 12,186 13,329 — —
Balance at March 31, 2026 $ 114,185 $ 52,473 $ 55,357 $ 195,276 $ 4,525
(1) Changes in the balance of mortgage loans held-for-sale, MSRs, and derivative assets related to fair value adjustments are recorded as components of mortgage banking revenue. Changes in the balance of loans held-for-investment related to fair value adjustments are recorded as other non-interest income.
Mortgage loans held-for-sale Loans held-for- investment Mortgage
servicing rights Derivative assets
(In thousands) Municipal
Balance at January 1, 2025 $ 121,607 $ 60,399 $ 34,896 $ 203,788 $ 1,950
Total net gains (losses) included in:
Net income (1)
— 973 271 ( 7,481 ) 3,543
Other comprehensive income or loss ( 5,078 ) — — — —
Purchases 15,282 — — — —
Settlements ( 9,967 ) ( 24,601 ) ( 4,947 ) — —
Net transfers into Level 3 — 19,553 3,782 — —
Balance at March 31, 2025 $ 121,844 $ 56,324 $ 34,002 $ 196,307 $ 5,493
(1) Changes in the balance of mortgage loans held-for-sale, MSRs, and derivative assets related to fair value adjustments are recorded as components of mortgage banking revenue. Changes in the balance of loans held-for-investment related to fair value adjustments are recorded as other non-interest income.
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Also, the Company may be required, from time to time, to measure certain other assets at fair value on a non-recurring basis in accordance with GAAP. These adjustments to fair value usually result from impairment charges on individual assets. For assets measured at fair value on a non-recurring basis that were still held in the balance sheet at the end of the period, the following table provides the carrying value of the related individual assets or portfolios at March 31, 2026:
March 31, 2026 Three Months Ended March 31, 2026
Fair Value Losses Recognized, net
(In thousands) Total Level 1 Level 2 Level 3
Individually assessed loans - foreclosure probable and collateral-dependent $ 132,937 $ — $ — $ 132,937 $ 16,008
Other real estate owned (1)
17,439 — — 17,439 —
Total $ 150,376 $ — $ — $ 150,376 $ 16,008
(1) Net fair value losses recognized on other real estate owned include valuation adjustments and charge-offs during the respective period.
Individually assessed loans —In accordance with ASC 326, the allowance for credit losses for loans and other financial assets
held at amortized cost should be measured on a collective or pooled basis when such assets exhibit similar risk characteristics. In instances in which a financial asset does not exhibit similar risk characteristics to a pool, the Company is required to measure such allowance for credit losses on an individual asset basis. For the Company’s loan portfolio, nonaccrual loans are considered to not exhibit similar risk characteristics as pools and thus are individually assessed. Credit losses are measured by estimating the fair value of the loan based on the present value of expected cash flows, the market price of the loan, or the fair value of the underlying collateral. Individually assessed loans are considered a fair value measurement where an allowance for credit loss is established based on the fair value of collateral. Appraised values on relevant real estate properties, which may require adjustments to market-based valuation inputs, are generally used on foreclosure probable and collateral-dependent loans within the real estate portfolios.
The Company’s Managed Assets Division is primarily responsible for the valuation of Level 3 inputs of individually assessed loans. For more information on individually assessed loans refer to Note (7) “Allowance for Credit Losses” in Item 1 of this report. At March 31, 2026, the Company had $ 132.9 million of individually assessed loans classified as Level 3. All of the $ 132.9 million of individually assessed loans were measured at fair value based on the underlying collateral of the loan as shown in the table above.
Other real estate owned —Other real estate owned is comprised of real estate acquired in partial or full satisfaction of loans and is included in other assets. Other real estate owned is recorded at its estimated fair value less estimated selling costs at the date of transfer, with any excess of the related loan balance over the fair value less expected selling costs charged to the allowance for loan losses. Subsequent changes in value are reported as adjustments to the carrying amount and are recorded in other non-interest expense. Gains and losses upon sale, if any, are also charged to other non-interest expense. Fair value is generally based on third party appraisals and internal estimates that are adjusted by a discount representing the estimated cost of sale and is therefore considered a Level 3 valuation.
The Company’s Managed Assets Division is primarily responsible for the valuation of Level 3 inputs for other real estate owned. At March 31, 2026, the Company had $ 17.4 million of other real estate owned classified as Level 3. The unobservable input applied to other real estate owned relates to the 10 % reduction to the appraisal value representing the estimated cost of sale of the foreclosed property. A higher discount for the estimated cost of sale results in a decreased carrying value.
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The valuation techniques and significant unobservable inputs used to measure both recurring and non-recurring Level 3 fair value measurements at March 31, 2026 were as follows:
(Dollars in thousands) Fair Value Valuation Methodology Significant Unobservable Input Input / Range of Inputs Weighted
Average
of Inputs Impact to valuation
from an increased or
higher input value
Measured at fair value on a recurring basis:
Municipal securities $ 114,185 Bond pricing Equivalent rating BBB-AA+ N/A Increase
Mortgage loans held-for-sale 52,473 Discounted cash flows Discount rate 5.63 %
5.63 % Decrease
Credit discount 0 % - 37 %
0.52 % Decrease
Loans held-for-investment 55,357 Discounted cash flows Discount rate 5.63 % - 5.67 %
6.13 % Decrease
Credit discount 0 % - 55 %
1.65 % Decrease
Constant prepayment rate (CPR) - current loans 9.26 %
9.26 % Decrease
Average life - delinquent loans (in years) 1.5 years - 11.7 years
5.2 years Decrease
MSRs 195,276 Discounted cash flows Discount rate 9 % - 12 %
9.83 % Decrease
Constant prepayment rate (CPR) 3 % - 84 %
10.05 % Decrease
Cost of servicing $ 70 - $ 90
$ 76 Decrease
Cost of servicing - delinquent $ 200 - $ 1,000
$ 399 Decrease
Derivatives 4,525 Discounted cash flows Pull-through rate 12 % - 100 %
87.31 % Increase
Measured at fair value on a non-recurring basis:
Individually assessed loans - foreclosure probable and collateral-dependent 132,937 Appraisal value Appraisal adjustment - cost of sale 10 % 10.00 % Decrease
Other real estate owned 17,439 Appraisal value Appraisal adjustment - cost of sale 10 % 10.00 % Decrease
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The Company is required under applicable accounting guidance to report the fair value of all financial instruments on the Consolidated Statements of Condition, including those financial instruments carried at cost. The table below presents the carrying amounts and estimated fair values of the Company’s financial instruments as of the dates shown:
At March 31, 2026 At December 31, 2025 At March 31, 2025
Carrying Fair Carrying Fair Carrying Fair
(In thousands) Value Value Value Value Value Value
Financial Assets:
Cash and cash equivalents $ 543,719 $ 543,719 $ 467,938 $ 467,938 $ 616,279 $ 616,279
Interest-bearing deposits with banks 3,051,665 3,051,665 3,180,553 3,180,553 4,238,237 4,238,237
Available-for-sale securities 7,244,282 7,244,282 6,236,263 6,236,263 4,220,305 4,220,305
Held-to-maturity securities 3,270,207 2,702,780 3,343,905 2,785,147 3,564,490 2,922,813
Equity securities with readily determinable fair value 63,786 63,786 63,770 63,770 270,442 270,442
FHLB and FRB stock, at cost 292,044 292,044 291,881 291,881 281,893 281,893
Mortgage loans held-for-sale, at fair value 383,405 383,405 340,745 340,745 316,804 316,804
Loans held-for-investment, at fair value 150,470 150,470 151,590 151,590 126,521 126,521
Loans held-for-investment, at amortized cost 53,920,822 53,397,638 52,953,511 52,383,501 48,581,869 47,744,657
Nonqualified deferred compensation assets 17,630 17,630 18,112 18,112 16,396 16,396
Derivative assets 152,851 152,851 179,667 179,667 204,257 204,257
Accrued interest receivable and other 570,211 570,211 552,197 552,197 573,254 573,254
Total financial assets $ 69,661,092 $ 68,570,481 $ 67,780,132 $ 66,651,364 $ 63,010,747 $ 61,531,858
Financial Liabilities:
Non-maturity deposits $ 48,427,601 $ 48,427,601 $ 47,839,241 $ 47,839,241 $ 43,601,801 $ 43,601,801
Deposits with stated maturities 10,486,781 10,485,678 9,877,950 9,890,485 9,968,237 9,964,441
FHLB advances 3,451,309 3,471,892 3,451,309 3,472,538 3,151,309 3,164,174
Other borrowings 340,647 340,647 477,966 478,072 529,269 529,297
Subordinated notes 298,717 294,351 298,636 296,487 298,360 294,495
Junior subordinated debentures 253,566 253,568 253,566 253,591 253,566 253,571
Derivative liabilities 118,937 118,937 123,774 123,774 181,198 181,198
Accrued interest payable 59,561 59,561 62,884 62,884 60,127 60,127
Total financial liabilities $ 63,437,119 $ 63,452,235 $ 62,385,326 $ 62,417,072 $ 58,043,867 $ 58,049,104
Not all the financial instruments listed in the table above are subject to the disclosure provisions of ASC Topic 820, as certain assets and liabilities result in their carrying value approximating fair value. These include cash and cash equivalents, interest-bearing deposits with banks, brokerage customer receivables, FHLB and FRB stock, accrued interest receivable and accrued interest payable and non-maturity deposits.
The following methods and assumptions were used by the Company in estimating fair values of financial instruments that were not previously disclosed.
Held-to-maturity securities — Held-to-maturity securities include U.S. government-sponsored agency securities, municipal bonds issued by various municipal government entities primarily located in the Chicago metropolitan area, southern Wisconsin, and west Michigan and mortgage-backed securities. Fair values for held-to-maturity securities are typically based on prices obtained from independent pricing vendors. In accordance with ASC 820, the Company has generally categorized these held-to-maturity securities as a Level 2 fair value measurement. Fair values for certain other held-to-maturity securities are based on the bond pricing methodology discussed previously related to certain available-for-sale securities. In accordance with ASC 820, the Company has categorized these held-to-maturity securities as a Level 3 fair value measurement.
Loans held-for-investment, at amortized cost — Fair values are estimated for portfolios of loans with similar financial characteristics. Loans are analyzed by type (commercial, residential real estate, etc.) and category within each type (construction, non-construction, franchise lending etc.). Each category is further segmented by interest rate type (fixed and variable). The fair value of both fixed and variable rate loans is estimated by discounting scheduled cash flows through the estimated maturity using estimated market discount rates that reflect credit and interest rate risks inherent in the loan. In accordance with ASC 820, the Company has categorized loans as a Level 3 fair value measurement.
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Deposits with stated maturities — The fair value of certificates of deposit is based on the discounted value of contractual cash flows. The discount rate is estimated using the rates currently in effect for deposits of similar remaining maturities. In accordance with ASC 820, the Company has categorized deposits with stated maturities as a Level 3 fair value measurement.
FHLB advances — The fair value of FHLB advances is calculated using a discounted cash flow analysis based on current market rates of similar maturity debt securities to discount cash flows. In accordance with ASC 820, the Company has categorized FHLB advances as a Level 3 fair value measurement.
Subordinated notes — The fair value of the subordinated notes is based on a market price obtained from an independent pricing vendor. In accordance with ASC 820, the Company has categorized subordinated notes as a Level 2 fair value measurement.
Junior subordinated debentures — The fair value of the junior subordinated debentures is based on the discounted value of contractual cash flows. In accordance with ASC 820, the Company has categorized junior subordinated debentures as a Level 3 fair value measurement.
(16) Stock-Based Compensation Plans
As of March 31, 2026, approximately 1,856,000 shares were available for future grants, assuming the maximum number of shares are issued for the performance awards outstanding, approved under the Company Stock Incentive Plans (“the Plans”). Descriptions of the Plans are included in Note (18) “Stock Compensation Plans and Other Employee Benefit Plans” of the 2025 Form 10-K.
Stock-based compensation expense recognized in the Consolidated Statements of Income was $ 11.3 million in the first quarter of 2026 and $ 10.4 million in the first quarter of 2025.
A summary of the Plans’ stock option activity for the three months ended March 31, 2026 and March 31, 2025 is presented below:
Stock Options Common
Shares Weighted
Average
Strike Price Remaining
Contractual
Term (1)
Intrinsic
Value (2)
(in thousands)
Outstanding at January 1, 2026
5,675 $ 44.81
Granted — —
Exercised ( 2,325 ) 40.97
Forfeited or canceled — —
Outstanding at March 31, 2026
3,350 $ 47.47 2.8 $ 306
Exercisable at March 31, 2026
3,350 $ 47.47 2.8 $ 306
Stock Options Common
Shares Weighted
Average
Strike Price Remaining
Contractual
Term (1)
Intrinsic
Value (2)
(in thousands)
Outstanding at January 1, 2025
10,825 $ 43.76
Granted — —
Exercised ( 5,150 ) 42.61
Forfeited or canceled — —
Outstanding at March 31, 2025
5,675 $ 44.81 3.4 $ 384
Exercisable at March 31, 2025
5,675 $ 44.81 3.4 $ 384
(1) Represents the remaining weighted average contractual life in years.
(2) Aggregate intrinsic value represents the total pre-tax intrinsic value (i.e., the difference between the Company’s stock price on the last trading day of the quarter and the option exercise price, multiplied by the number of shares) that would have been received by the option holders if they had exercised their options on the last day of the quarter. Options with exercise prices above the stock price on the last trading day of the quarter are excluded from the calculation of intrinsic value. The intrinsic value will change based on the fair market value of the Company’s stock.
The aggregate intrinsic value of options exercised during the three months ended March 31, 2026 and March 31, 2025, was approximately $ 250,000 and $ 467,000 , respectively. Cash received from option exercises under the Plans for the three months ended March 31, 2026 and March 31, 2025 was approximately $ 95,000 and $ 219,000 , respectively.
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A summary of the Plans’ restricted share activity for the three months ended March 31, 2026 and March 31, 2025 is presented below:
Three months ended March 31, 2026 Three months ended March 31, 2025
Restricted Shares Common
Shares Weighted
Average
Grant-Date
Fair Value Common
Shares Weighted
Average
Grant-Date
Fair Value
Outstanding at January 1 888,398 $ 101.63 880,866 $ 90.95
Granted 246,987 153.55 245,654 133.61
Vested and issued ( 268,760 ) 93.29 ( 192,866 ) 94.94
Forfeited or canceled ( 7,356 ) 117.07 ( 7,587 ) 103.76
Outstanding at March 31
859,269 $ 119.23 926,067 $ 101.33
Vested, but deferred, at March 31
102,584 $ 55.94 101,000 $ 54.75
A summary of the Plans’ performance-based stock award activity, based on the target level of the awards, for the three months ended March 31, 2026 and March 31, 2025 is presented below:
Three months ended March 31, 2026 Three months ended March 31, 2025
Performance-based Stock Common
Shares Weighted
Average
Grant-Date
Fair Value Common
Shares Weighted
Average
Grant-Date
Fair Value
Outstanding at January 1 377,757 $ 102.38 454,017 $ 93.57
Granted 85,822 148.36 86,524 134.69
Added by performance factor at vesting, net 9,242 — 75,461 —
Vested and issued ( 196,899 ) 90.33 ( 230,957 ) 95.26
Forfeited or canceled ( 336 ) 112.99 ( 2,902 ) 97.28
Outstanding at March 31
275,586 $ 125.92 382,143 $ 102.41
Vested, but deferred, at March 31
— $ — 13,176 $ 40.20
(17) Accumulated Other Comprehensive Income or Loss and Earnings Per Share
Accumulated Other Comprehensive Income or Loss
The following tables summarize the components of other comprehensive income or loss, including the related income tax effects, and the related amount reclassified to net income for the periods presented:
(In thousands) Accumulated
Unrealized (Losses) Gains
on Securities Accumulated
Unrealized Gains (Losses) on
Derivative
Instruments Accumulated
Foreign
Currency
Translation
Adjustments Total
Accumulated
Other
Comprehensive (Loss) Income
Balance at January 1, 2026 $ ( 292,829 ) $ 49,912 $ ( 52,837 ) $ ( 295,754 )
Other comprehensive loss during the period, net of tax, before reclassifications ( 44,767 ) ( 18,854 ) ( 4,488 ) ( 68,109 )
Amount reclassified from accumulated other comprehensive income or loss into net income, net of tax 1 ( 2,936 ) — ( 2,935 )
Amount reclassified from accumulated other comprehensive income or loss related to amortization of unrealized gains on investment securities transferred to held-to-maturity from available-for-sale, net of tax ( 10 ) — — ( 10 )
Net other comprehensive loss during the period, net of tax $ ( 44,776 ) $ ( 21,790 ) $ ( 4,488 ) $ ( 71,054 )
Balance at March 31, 2026 $ ( 337,605 ) $ 28,122 $ ( 57,325 ) $ ( 366,808 )
Balance at January 1, 2025 $ ( 429,580 ) $ ( 11,227 ) $ ( 67,528 ) $ ( 508,335 )
Other comprehensive income (loss) during the period, net of tax, before reclassifications 55,371 38,722 ( 240 ) 93,853
Amount reclassified from accumulated other comprehensive income or loss into net income, net of tax 223 4,252 — 4,475
Amount reclassified from accumulated other comprehensive income or loss related to amortization of unrealized gains on investment securities transferred to held-to-maturity from available-for-sale, net of tax ( 8 ) — — ( 8 )
Net other comprehensive income (loss) during the period, net of tax $ 55,586 $ 42,974 $ ( 240 ) $ 98,320
Balance at March 31, 2025 $ ( 373,994 ) $ 31,747 $ ( 67,768 ) $ ( 410,015 )
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(In thousands) Amount Reclassified from Accumulated Other Comprehensive Income or Loss for the
Details Regarding the Component of Accumulated Other Comprehensive Income or Loss Three Months Ended Impacted Line on the
Consolidated Statements of Income
March 31,
2026 2025
Accumulated unrealized losses on securities
Losses included in net income $ ( 2 ) $ ( 301 ) (Losses) gains on investment securities, net
( 2 ) ( 301 ) Income before taxes
Tax effect 1 78 Income tax expense
Net of tax $ ( 1 ) $ ( 223 ) Net income
Accumulated unrealized (losses) gains on derivative instruments
Amount reclassified to interest income on loans $ ( 642 ) $ 9,071 Interest on Loans
Amount reclassified to interest expense on deposits ( 3,325 ) ( 3,325 ) Interest on deposits
3,967 ( 5,746 ) Income before taxes
Tax effect ( 1,031 ) 1,494 Income tax expense
Net of tax $ 2,936 $ ( 4,252 ) Net income
Earnings per Share
The following table shows the computation of basic and diluted earnings per share for the periods indicated:
Three Months Ended
(Dollars in thousands, except per share data) March 31,
2026 March 31,
2025
Net income $ 227,388 $ 189,039
Less: Preferred stock dividends 8,367 6,991
Net income applicable to common shares (A) $ 219,021 $ 182,048
Weighted average common shares outstanding (B) 67,246 66,726
Effect of dilutive potential common shares
Common stock equivalents 851 923
Weighted average common shares and effect of dilutive potential common shares (C) 68,097 67,649
Net income per common share:
Basic (A/B) $ 3.26 $ 2.73
Diluted (A/C) $ 3.22 $ 2.69
Potentially dilutive common shares can result from stock options, restricted stock unit awards and shares to be issued under the Employee Stock Purchase Plan and the Directors Deferred Fee and Stock Plan, being treated as if they had been either exercised or issued, computed by application of the treasury stock method. While potentially dilutive common shares are typically included in the computation of diluted earnings per share, potentially dilutive common shares are excluded from this computation in periods in which the effect of inclusion would either reduce the loss per share or increase the income per share.
At the January 2026 meeting of the Board of Directors of the Company (the “Board of Directors”), a quarterly cash dividend of $ 0.55 per share ($ 2.20 on an annualized basis) was declared. It was paid on February 19, 2026 to shareholders of record as of February 5, 2026.
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ITEM 2
MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL
CONDITION AND RESULTS OF OPERATIONS
The following discussion and analysis of the financial condition of Wintrust Financial Corporation and its subsidiaries (collectively, “Wintrust” or the “Company”) as of March 31, 2026 compared with December 31, 2025 and March 31, 2025, and the results of operations for the three month periods ended March 31, 2026 and March 31, 2025, should be read in conjunction with the unaudited consolidated financial statements and notes contained in this report and the risk factors discussed under Item 1A of the Company’s Annual Report on Form 10-K for the year ended December 31, 2025 (“2025 Form 10-K”) and in Part II, Item 1A, of this Form 10-Q. This discussion contains forward-looking statements that involve risks and uncertainties and, as such, future results could differ significantly from management’s current expectations. See the last section of this discussion for further information on forward-looking statements.
Introduction
Wintrust is a financial holding company that provides traditional community and commercial banking services and offers a full array of wealth management services, primarily to customers in the Chicago metropolitan area, southern Wisconsin, northwest Indiana, and west Michigan, and operates other financing businesses on a national basis and in Canada through several non-bank businesses.
Overview
First Quarter Highlights
The Company recorded net income of $227.4 million for the first quarter of 2026 compared to $189.0 million in the first quarter of 2025. The results for the first quarter of 2026 demonstrate increased net interest income due to growth in earning assets as well as the Company’s ability to navigate disruptions in the current economic environment during the period due to the Company’s strong deposit franchise and balanced business model. Partially offsetting the increase in net interest income was an increase in non-interest expense. The increase in non-interest expense was a result of additional expenses to support growth. Comprehensive income includes 1) net income as presented on the Company’s Consolidated Statements of Income and 2) other comprehensive income or loss from unrealized gains and losses on the Company’s available-for-sale investment securities portfolios and derivative contracts designated as cash flow hedges as well as foreign currency translation adjustments. Comprehensive income totaled $156.3 million for the first quarter of 2026 compared to $287.4 million for the first quarter of 2025.
The Company increased its loan portfolio from $48.7 billion at March 31, 2025 and $53.1 billion at December 31, 2025 to $54.1 billion at March 31, 2026. The increase in the current period compared to the prior periods was a result of growth in several portfolios, including the commercial, commercial real estate, and residential real estate loans held for investment portfolios. For more information regarding changes in the Company’s loan portfolio, see Financial Condition – Interest Earning Assets and Note (6) “Loans” of the Consolidated Financial Statements in Item 1 of this report.
The Company recorded net interest income of $579.0 million in the first quarter of 2026 compared to $526.5 million in the first quarter of 2025. This increase in net interest income recorded in the first quarter of 2026 compared to the first quarter of 2025 resulted primarily from growth in earning assets, specifically a $5.0 billion increase in average loans. Net interest margin held steady at 3.54% (3.56% on a fully taxable-equivalent basis, non-GAAP) in the first quarter of 2026 and 2025 (see “Net Interest Income” for further detail).
Non-interest income totaled $134.1 million in the first quarter of 2026 compared to $116.6 million in the first quarter of 2025. The increase is primarily due to an increase in wealth management revenue of $8.0 million, an increase in operating lease income of $3.9 million, and an increase in mortgage banking revenue of $2.9 million in the first quarter of 2026 compared to the first quarter of 2025. This was partially offset by net losses on investment securities of $31,000 compared to approximately $3.2 million in net gains recognized in the first quarter of 2025 (see “Non-Interest Income” for further detail).
Non-interest expense totaled $382.6 million in the first quarter of 2026, an increase of $16.5 million, or 5%, compared to the first quarter of 2025. This increase compared to the first quarter of 2025 was primarily attributable to increased salaries and employee benefits of $16.9 million (see “Non-Interest Expense” for further detail).
Management considers the maintenance of adequate liquidity to be important to the management of risk. Accordingly, during the first quarter of 2026, the Company continued its practice of maintaining appropriate funding capacity to provide the
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Company with adequate liquidity for its ongoing operations. In this regard, the Company benefited from its strong deposit base, a liquid investment portfolio and its access to funding from a variety of external funding sources. See “Shareholders’ Equity”, “Deposits” and “Other Funding Sources” for additional information regarding liquidity sources.
RESULTS OF OPERATIONS
Earnings Summary
The Company’s key operating measures and growth rates for the three months ended March 31, 2026, as compared to the same period last year, are shown below:
Three months ended
(Dollars in thousands, except per share data) March 31,
2026 March 31,
2025 Percentage (%) or
Basis Point (bp) Change
Net income $ 227,388 $ 189,039 20 %
Pre-tax income, excluding provision for credit losses (non-GAAP) (1)
330,534 277,018 19
Net income per common share—Diluted 3.22 2.69 20
Net revenue (2)
713,166 643,108 11
Net interest income 579,024 526,474 10
Net interest margin 3.54 % 3.54 % — bps
Net interest margin - fully taxable-equivalent (non-GAAP) (1)
3.56 3.56 —
Net overhead ratio (3)
1.44 1.58 (14)
Return on average assets 1.32 1.20 12
Return on average common equity 12.76 12.21 55
Return on average tangible common equity (non-GAAP) (1)
14.89 14.72 17
At end of period
Total assets $ 72,157,433 $ 65,870,066 10 %
Total loans, excluding loans held-for-sale 54,071,292 48,708,390 11
Total loans, including loans held-for-sale 54,454,697 49,025,194 11
Total deposits 58,914,382 53,570,038 10
Total shareholders’ equity 7,378,100 6,600,537 12
Book value per common share (1)
103.10 92.47 11
Tangible common book value per share (1)
89.90 78.83 14
Market price per common share 138.94 112.46 24
Allowance for loan and unfunded lending-related commitment losses to total loans 0.87 % 0.92 % (5) bps
(1) See following section titled “Supplemental Non-GAAP Financial Measures/Ratios” for additional information on this performance measure/ratio.
(2) Net revenue is net interest income plus non-interest income.
(3) The net overhead ratio is calculated by netting total non-interest expense and total non-interest income, annualizing this amount, and dividing by that period’s total average assets. A lower ratio indicates a higher degree of efficiency.
Certain returns, yields, performance ratios, and quarterly growth rates are “annualized” throughout this report to represent an annual time period. This is done for analytical purposes to better discern for decision-making purposes underlying performance trends when compared to full-year or year-over-year amounts. For example, balance sheet growth rates are most often expressed in terms of an annual rate. As such, 5% growth during a quarter would represent an annualized growth rate of 20%.
SUPPLEMENTAL 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 efficiency 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 financial 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 efficiency. Other financial holding companies may define or calculate these measures and ratios differently.
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 reflect tax-exempt interest income on an equivalent before-tax basis using tax rates effective as of the end of the period. This measure
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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 efficiency ratio. The efficiency 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 profitability. Management considers pre-tax income, excluding provision for credit losses as a useful measurement of the Company’s core net income.
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 financial measures is shown below:
Three Months Ended
March 31, December 31, March 31,
(Dollars and shares in thousands) 2026 2025 2025
Reconciliation of Non-GAAP Net Interest Margin and Efficiency Ratio:
(A) Interest Income (GAAP) $ 927,560 $ 956,326 $ 886,965
Taxable-equivalent adjustment:
- Loans
2,026 2,134 2,206
- Liquidity Management Assets 586 661 690
- Other Earning Assets — — 3
(B) Interest Income (non-GAAP) $ 930,172 $ 959,121 $ 889,864
(C) Interest Expense (GAAP) 348,536 372,452 360,491
(D) Net Interest Income (GAAP) (A minus C) 579,024 583,874 526,474
(E) Net Interest Income, fully taxable-equivalent (non-GAAP) (B minus C) 581,636 586,669 529,373
Net interest margin (GAAP) 3.54 % 3.52 % 3.54 %
Net interest margin, fully taxable-equivalent (non-GAAP) 3.56 3.54 3.56
(F) Non-interest income $ 134,142 $ 130,390 $ 116,634
(G) (Losses) gains on investment securities, net (31) 1,505 3,196
(H) Non-interest expense 382,632 384,453 366,090
Efficiency ratio (H/(D+F-G)) 53.65 % 53.94 % 57.21 %
Efficiency ratio (non-GAAP) (H/(E+F-G)) 53.45 53.73 56.95
Reconciliation of Non-GAAP Tangible Common Equity Ratio:
Total shareholders’ equity (GAAP) $ 7,378,100 $ 7,258,715 $ 6,600,537
Less: Non-convertible preferred stock (GAAP) (425,000) (425,000) (412,500)
Less: Acquisition-related intangible assets (GAAP) (890,698) (895,959) (913,004)
(I) Total tangible common shareholders’ equity (non-GAAP) $ 6,062,402 $ 5,937,756 $ 5,275,033
(J) Total assets (GAAP) $ 72,157,433 $ 71,142,046 $ 65,870,066
Less: Acquisition-related intangible assets (GAAP) (890,698) (895,959) (913,004)
(K) Total tangible assets (non-GAAP) $ 71,266,735 $ 70,246,087 $ 64,957,062
Common equity to assets ratio (GAAP) (L/J) 9.6 % 9.6 % 9.4 %
Tangible common equity ratio (non-GAAP) (I/K) 8.5 8.5 8.1
Reconciliation of Non-GAAP Tangible Book Value per Common Share:
Total shareholders’ equity $ 7,378,100 $ 7,258,715 $ 6,600,537
Less: Non-convertible preferred stock (GAAP) (425,000) (425,000) (412,500)
(L) Total common equity $ 6,953,100 $ 6,833,715 $ 6,188,037
(M) Actual common shares outstanding 67,437 66,975 66,919
Book value per common share (L/M) $ 103.10 $ 102.03 $ 92.47
Tangible book value per common share (non-GAAP) (I/M) 89.90 88.66 78.83
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Reconciliation of Non-GAAP Return on Average Tangible Common Equity:
(N) Net income applicable to common shares $ 219,021 $ 214,657 $ 182,048
Add: Acquisition-related intangible asset amortization 4,958 4,999 5,618
Less: Tax effect of acquisition-related intangible asset amortization (1,210) (1,310) (1,421)
After-tax acquisition-related intangible asset amortization $ 3,748 $ 3,689 $ 4,197
(O) Tangible net income applicable to common shares (non-GAAP) $ 222,769 $ 218,346 $ 186,245
Total average shareholders’ equity $ 7,387,713 $ 7,166,608 $ 6,460,941
Less: Average preferred stock (425,000) (425,000) (412,500)
(P) Total average common shareholders’ equity $ 6,962,713 $ 6,741,608 $ 6,048,441
Less: Average acquisition-related intangible assets (894,211) (901,022) (916,069)
(Q) Total average tangible common shareholders’ equity (non-GAAP) $ 6,068,502 $ 5,840,586 $ 5,132,372
Return on average common equity, annualized (N/P) 12.76 % 12.63 % 12.21 %
Return on average tangible common equity, annualized (non-GAAP) (O/Q) 14.89 14.83 14.72
Reconciliation of Non-GAAP Pre-Tax, Pre-Provision Income:
Income before taxes $ 300,940 $ 302,223 $ 253,055
Add: Provision for credit losses 29,594 27,588 23,963
Pre-tax income, excluding provision for credit losses (non-GAAP) $ 330,534 $ 329,811 $ 277,018
Critical Accounting Estimates
The Company’s Consolidated Financial Statements are prepared in accordance with GAAP in the United States, prevailing practices of the banking industry, and the application of accounting policies of which are described in Note (1) “Summary of Significant Accounting Policies” to the Consolidated Financial Statements in Item 8 of the Company’s 2025 Form 10-K. These policies require numerous estimates and strategic or economic assumptions, which may prove inaccurate or subject to variations. Changes in underlying factors, assumptions or estimates could have a material impact on the Company’s future financial condition and results of operations. At March 31, 2026, management views critical accounting estimates to include the determination of the allowance for credit losses, estimations of fair value, and the valuation and accounting for derivative instruments, as the accounting areas that require the most subjective and complex judgments, and as such could be most subject to revision as new information becomes available. These estimates were reviewed by the Audit Committee of the Company’s Board of Directors and are discussed in further detail below.
Allowance for Credit Losses, including the Allowance for Loan Losses, Allowance for Losses on Lending-Related Commitments and Allowance for Held-to-Maturity Debt Securities
The allowance for credit losses represents management’s estimate of expected credit losses over the life of a financial asset carried at amortized cost. Determining the amount of the allowance for credit losses is considered a critical accounting estimate because it requires significant judgment and includes the use of estimates related to the fair value of the underlying collateral and amount and timing of expected future cash flows on individually assessed financial assets, estimated credit losses on pools of loans with similar risk characteristics, and consideration of reasonable and supportable forecasts of macroeconomic conditions, all of which are susceptible to significant change. At March 31, 2026, the loan and held-to-maturity debt securities portfolios represent 79% of total assets on the Company’s consolidated balance sheet. The Company also maintains an allowance for lending-related commitments, specifically unfunded loan commitments and letters of credit, which relates to certain amounts the Company is committed to lend (not unconditionally cancelable) but for which funds have not yet been disbursed.
Key macroeconomic variable data points that are significant inputs into our credit loss models for the commercial and commercial real estate portfolios are the Baa corporate credit spread, the Dow Jones Total Stock Market Index for the commercial portfolio, and the Commercial Real Estate Pricing Index ("CREPI") related to the commercial real estate portfolio. Holding all other inputs constant, the table below shows the impact of changes in these key macroeconomic variable data points on the estimate of allowance for credit losses.
Impact to estimated allowance for credit losses from an increased or higher input value
Baa Credit Spread Increases
Dow Jones Total Stock Market Index Decreases
CRE Pricing Index Decreases
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Holding all other inputs constant, the following table provides a sensitivity analysis for the commercial and commercial real estate portfolios based on a 10 basis point change in Baa credit spreads from the assumption utilized in the estimate of that portfolio’s allowance for credit losses at March 31, 2026:
Baa Credit Spread
Narrows Widens
Commercial Decreases estimate by 5%-10% Increases estimate by 5%-10%
Commercial Real Estate:
Construction Decreases estimate by 5%-10% Increases estimate by 5%-10%
Non-Construction Decreases estimate by 2%-3% Increases estimate by 2-3%
Holding all other inputs constant, the following table provides a sensitivity analysis for the commercial portfolio based on a 10% change in the Dow Jones Total Stock Market Index from the assumption utilized in the estimate of that portfolio’s allowance for credit losses at March 31, 2026:
Dow Jones Total Stock Market Index
Increases Decreases
Commercial Decreases estimate by 5%-10% Increases estimate by 5%-10%
Holding all other inputs constant, the following table provides a sensitivity analysis for the commercial real estate construction and non-construction portfolios based on a 10% change in CREPI from the assumption utilized in the estimate of that portfolio’s allowance for credit losses at March 31, 2026:
CRE Pricing Index
Increases Decreases
Commercial Real Estate:
Construction Decreases estimate by 30%-35% Increases estimate by 125%-130%
Non-Construction Decreases estimate by 25%-30% Increases estimate by 40%-45%
See Note (7) “Allowance for Credit Losses” to the Consolidated Financial Statements in Item 1 of this report and the section titled “Credit Quality” in Item 2 of this report for a description of the methodology used to determine the allowance for credit losses.
For a more detailed discussion on these critical accounting estimates, see “Summary of Critical Accounting Estimates” beginning on page 56 of the 2025 Form 10-K.
Net Income
Net income for the quarter ended March 31, 2026 totaled $227.4 million, an increase of $38.3 million, or 20%, compared to the quarter ended March 31, 2025. On a per share basis, net income for the first quarter of 2026 totaled $3.22 per diluted common share compared to $2.69 for the first quarter of 2025.
The increase in net income for the first quarter of 2026 as compared to the same period in the prior year is primarily attributable to increased net interest income and an increase in non-interest income, partially offset by increased non-interest expense primarily due to increased salary and employee benefits expenses. See “Net Interest Income,” “Non-interest Income,” “Non-interest Expense” and “Credit Quality” for further detail.
Net Interest Income
The primary source of the Company’s revenue is net interest income. Net interest income is the difference between interest income and fees on earning assets, such as loans and securities, and interest expense on the liabilities to fund those assets, including interest-bearing deposits and other borrowings. The amount of net interest income is affected by both changes in the level of interest rates, and the amount and composition of earning assets and interest bearing liabilities.
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Quarter Ended March 31, 2026 compared to the Quarters Ended December 31, 2025 and March 31, 2025
The following table presents a summary of the Company’s average balances, net interest income and related net interest margins, including a calculation on a fully taxable-equivalent basis, for the first quarter of 2026 as compared to the fourth quarter of 2025 (sequential quarters) and first quarter of 2025 (linked quarters):
Average Balance
for three months ended, Interest
for three months ended, Yield/Rate
for three months ended,
(Dollars in thousands) Mar 31,
2026 Dec 31,
2025 Mar 31,
2025 Mar 31,
2026 Dec 31,
2025 Mar 31,
2025 Mar 31,
2026 Dec 31,
2025 Mar 31,
2025
Interest-bearing deposits with banks, securities purchased under resale agreements and cash equivalents (1)
$ 2,247,083 $ 2,842,829 $ 3,520,048 $ 19,214 $ 27,267 $ 36,945 3.47 % 3.81 % 4.26 %
Investment securities (2)
10,616,617 10,084,138 8,409,735 100,864 96,122 72,706 3.85 3.78 3.51
FHLB and FRB stock 291,972 284,643 281,702 5,564 5,497 5,307 7.73 7.66 7.64
Liquidity management assets (3) (8)
$ 13,155,672 $ 13,211,610 $ 12,211,485 $ 125,642 $ 128,886 $ 114,958 3.87 % 3.87 % 3.82 %
Other earning assets (3) (4) (8)
— — 13,140 — — 92 — — 2.84
Mortgage loans held-for-sale 317,047 357,672 286,710 4,615 5,607 4,246 5.90 6.22 6.01
Loans, net of unearned
income (3) (5) (8)
52,845,685 52,193,637 47,833,380 799,915 824,628 770,568 6.14 6.27 6.53
Total earning assets (8)
$ 66,318,404 $ 65,762,919 $ 60,344,715 $ 930,172 $ 959,121 $ 889,864 5.69 % 5.79 % 5.98 %
Allowance for loan and investment security losses (391,810) (404,075) (375,371)
Cash and due from banks 534,189 517,616 476,423
Other assets 3,628,340 3,615,808 3,661,275
Total assets
$ 70,089,123 $ 69,492,268 $ 64,107,042
NOW and interest-bearing demand deposits $ 6,081,218 $ 6,133,333 $ 6,046,189 $ 29,666 $ 31,681 $ 33,600 1.98 % 2.05 % 2.25 %
Wealth management deposits 1,858,560 1,925,808 1,574,480 8,941 10,011 8,606 1.95 2.06 2.22
Money market accounts 21,156,125 20,475,659 17,581,141 155,299 163,585 146,374 2.98 3.17 3.38
Savings accounts 6,921,251 6,814,263 6,479,444 30,672 34,371 35,923 1.80 2.00 2.25
Time deposits 9,782,112 10,045,136 9,406,126 84,609 92,530 95,730 3.51 3.65 4.13
Interest-bearing deposits $ 45,799,266 $ 45,394,199 $ 41,087,380 $ 309,187 $ 332,178 $ 320,233 2.74 % 2.90 % 3.16 %
Federal Home Loan Bank advances 3,451,312 3,203,483 3,151,309 27,701 26,408 25,441 3.26 3.27 3.27
Other borrowings 442,200 547,507 582,139 4,026 5,956 6,792 3.69 4.32 4.73
Subordinated notes 298,661 298,576 298,306 3,719 3,737 3,714 5.05 4.97 5.05
Junior subordinated debentures 253,566 253,566 253,566 3,903 4,173 4,311 6.24 6.53 6.90
Total interest-bearing liabilities
$ 50,245,005 $ 49,697,331 $ 45,372,700 $ 348,536 $ 372,452 $ 360,491 2.81 % 2.97 % 3.22 %
Non-interest-bearing deposits 10,963,887 11,080,254 10,732,156
Other liabilities 1,492,518 1,548,075 1,541,245
Equity 7,387,713 7,166,608 6,460,941
Total liabilities and shareholders’ equity
$ 70,089,123 $ 69,492,268 $ 64,107,042
Interest rate spread (6) (8)
2.88 % 2.82 % 2.76 %
Less: Fully taxable-equivalent adjustment (2,612) (2,795) (2,899) (0.02) (0.02) (0.02)
Net free funds/contribution (7)
$ 16,073,399 $ 16,065,588 $ 14,972,015 0.68 0.72 0.80
Net interest income/margin (GAAP) (8)
$ 579,024 $ 583,874 $ 526,474 3.54 % 3.52 % 3.54 %
Fully taxable-equivalent adjustment 2,612 2,795 2,899 0.02 0.02 0.02
Net interest income/margin, fully taxable-equivalent (non-GAAP) (8)
$ 581,636 $ 586,669 $ 529,373 3.56 % 3.54 % 3.56 %
(1) Includes interest-bearing deposits with banks and securities purchased under resale agreements with original maturities of greater than three months. Cash equivalents include federal funds sold and securities purchased under resale agreements with original maturities of three months or less.
(2) Investment securities includes investment securities classified as available-for-sale and held-to-maturity, and equity securities with readily determinable fair values. Equity securities without readily determinable fair values are included within other assets.
(3) Interest income on tax-advantaged loans, trading securities and investment securities reflects a tax-equivalent adjustment based on the marginal federal corporate tax rate in effect as of the applicable period. The total adjustments for the three months ended March 31, 2026, December 31, 2025 and March 31, 2025 were $2.6 million, $2.8 million and $2.9 million, respectively.
(4) Other earning assets include brokerage customer receivables and trading account securities.
(5) Loans, net of unearned income, include nonaccrual loans.
(6) Interest rate spread is the difference between the yield earned on earning assets and the rate paid on interest-bearing liabilities.
(7) Net free funds are the difference between total average earning assets and total average interest-bearing liabilities. The estimated contribution to net interest margin from net free funds is calculated using the rate paid for total interest-bearing liabilities.
(8) See “Supplemental Non-GAAP Financial Measures/Ratios” for additional information on this performance measure/ratio.
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For the first quarter of 2026, net interest income totaled $579.0 million, a decrease of $4.9 million as compared to the fourth quarter of 2025, and an increase of $52.6 million as compared to the first quarter of 2025. Net interest margin was 3.54% (3.56% on a FTE basis, non-GAAP) during the first quarter of 2026 compared to 3.52% (3.54% on a FTE basis, non-GAAP) during the fourth quarter of 2025, and 3.54% (3.56% on a FTE basis, non-GAAP) during the first quarter of 2025.
Analysis of Changes in Net Interest Income on a FTE basis (non-GAAP)
The following table presents an analysis of the changes in the Company’s net interest income on a FTE basis (non-GAAP) comparing the three month period ended March 31, 2026 to each of the three month periods ended December 31, 2025 and March 31, 2025. The reconciliations set forth the changes in the net interest income on a FTE basis (non-GAAP) as a result of changes in volumes, changes in rates and differing number of days in each period:
First Quarter
of 2026
Compared to
Fourth Quarter
of 2025
First Quarter
of 2026
Compared to
First Quarter
of 2025
(In thousands)
Net interest income, FTE basis (non-GAAP) (1) for comparative period
$ 586,669 $ 529,373
Change due to mix and growth of earning assets and interest-bearing liabilities (volume) 4,134 48,465
Change due to interest rate fluctuations (rate) 3,870 3,798
Change due to number of days in each period (13,037) —
Less: FTE adjustment (2,612) (2,612)
Net interest income (GAAP) (1) for the period ended March 31, 2026
$ 579,024 $ 579,024
FTE adjustment 2,612 2,612
Net interest income, FTE basis (non-GAAP) (1)
$ 581,636 $ 581,636
(1) See “Supplemental Non-GAAP Financial Measures/Ratios” for additional information on this performance measure/ratio.
Deposit beta
The Company defines deposit betas as the change in the cost of the Company’s deposits relative to the change in the upper limit of the federal funds target range established by the Federal Open Market Committee. The Company evaluates deposit betas across both rising and declining interest rate environments. During the prior rising interest rate cycle, which began in the first quarter of 2022 and concluded in the second quarter of 2024, deposit costs increased as rates rose, resulting in cumulative deposit betas of 53% for total deposits and 66% for interest-bearing deposits. For the current declining interest rate cycle, measured from June 30, 2024 to March 31, 2026, our cumulative deposit betas were 41% for total deposits and 57% for interest-bearing deposits.
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Non-interest Income
The following table presents non-interest income by category for the periods presented:
Three Months Ended $
Change %
Change
(Dollars in thousands) March 31,
2026 March 31,
2025
Brokerage $ 5,301 $ 4,757 $ 544 11 %
Trust and asset management 36,758 29,285 7,473 26
Total wealth management (1)
42,059 34,042 8,017 24
Mortgage banking 23,396 20,529 2,867 14
Service charges on deposit accounts 20,970 19,362 1,608 8
(Losses) gains on investment securities, net (31) 3,196 (3,227) NM
Fees from covered call options 4,669 3,446 1,223 35
Trading gains (losses), net 10 (64) 74 NM
Operating lease income, net 19,154 15,287 3,867 25
Other:
Interest rate swap fees 4,041 2,269 1,772 78
BOLI 948 796 152 19
Administrative services 1,243 1,393 (150) (11)
Foreign currency remeasurement losses (368) (183) (185) NM
Changes in fair value on EBOs and loans held-for-investment (287) 383 (670) NM
Early pay-offs of capital leases 1,198 768 430 56
Miscellaneous 17,140 15,410 1,730 11
Total Other 23,915 20,836 3,079 15
Total Non-interest Income $ 134,142 $ 116,634 $ 17,508 15 %
(1) Wealth management revenue is comprised of the trust and asset management revenue of Wintrust Private Trust Company, N.A. (“WPT”) and Great Lakes Advisors, the brokerage commissions, managed money fees and insurance product commissions at Wintrust Investments and fees from tax-deferred like-kind exchange services provided by CDEC.
NM - Not Meaningful.
Notable contributions to the change in non-interest income are as follows:
Mortgage banking revenue increased for the three months ended March 31, 2026 as compared to the same period in 2025 due primarily to higher production revenue. Mortgage banking revenue includes revenue from activities related to originating, selling and servicing residential real estate loans for the secondary market. A main factor in the mortgage banking revenue recognized by the Company is the volume of mortgage loans originated or purchased for sale and the related production margins. Mortgage loans originated for sale totaled $594.0 million in the first quarter of 2026 as compared to $460.5 million in the first quarter of 2025. The increase in quarterly origination volume was driven primarily by a favorable rate environment and modest improvements in housing supply relative to the prior year. Mortgage rates in early 2026 remained below year-ago levels despite intra-quarter volatility, contributing to improved borrower demand and higher level of refinancing activity. The percentage of origination volume from refinancing activities was 48% for the three months ended March 31, 2026, as compared to 23% for the same period in 2025.
The Company records MSRs at fair value on a recurring basis. For the three months ended March 31, 2026, the fair value of the MSRs portfolio slightly increased by $253,000, reflecting $6.4 million of capitalization from newly retained servicing rights and a fair value adjustment of $460,000, largely offset by $6.6 million of reductions due to payoffs, paydowns and repurchases of the existing portfolio. See Note (9) “Mortgage Servicing Rights (“MSRs”)” to the Consolidated Financial Statements in Item 1 of this report for a summary of the changes in the carrying value of MSRs.
Mortgage banking revenue is also impacted by changes in the fair value of derivative contracts held to economically hedge a portion of the fair value adjustments related to the Company’s MSRs portfolio. The change in fair value of the derivative contracts held as an economic hedge was an unfavorable $900,000 for the three months ended March 31, 2026 compared to a favorable $4.9 million for the three months ended March 31, 2025.
Wealth management revenue increased by $8.0 million in the first quarter of 2026 as compared to the same period of 2025 primarily due to increased trust and asset management revenue. Wealth management revenue is comprised of the trust and asset management revenue of Wintrust Private Trust Company and Great Lakes Advisors, the brokerage commissions, managed
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money fees and insurance product commissions at Wintrust Investments and fees from tax-deferred like-kind exchange services provided by the Chicago Deferred Exchange Company.
Service charges on deposits increased for the three months ended March 31, 2026 as compared to the same period in 2025 primarily as a result of increased commercial account analysis service fees. Service charges on deposit accounts include fees charged to deposit customers for various services, including account analysis services, and are based on factors such as the size and type of customer, type of product and number of transactions. The fees are based on a standard schedule of fees and, depending on the nature of the service performed, the service is performed at a point in time or over a period of a month.
The Company recognized net losses on investment securities for the three months ended March 31, 2026 of $31,000. The Company recognized net gains on investment securities for the three months ended March 31, 2025 of $3.2 million. The net losses for the three months ended March 31, 2026 were primarily the result of unrealized losses on the Company’s equity investment securities with a readily determinable fair value. See Note (5) “Investment Securities” to the Consolidated Financial Statements in Item 1 of this report for more information on net gains and losses on investment securities.
Operating lease income increased in the first quarter of 2026 as a result of additional lease rental income due to growth in leased assets as compared to the first quarter of 2025.
Fees from covered call options for the three months ended March 31, 2026 increased $1.2 million, when compared to the same period in the prior year. The increased income was primarily because the Company sold more options than in the comparative period. The Company has routinely written call options with terms of less than three months against certain U.S. Treasury and agency securities held in its portfolio for liquidity and other purposes. Management has effectively entered into these transactions with the goal of economically hedging security positions and enhancing its overall return on its investment portfolio. These option transactions are designed to increase the total return associated with holding certain investment securities and do not qualify as hedges pursuant to accounting guidance. There were no outstanding call option contracts at March 31, 2026 and 2025.
Miscellaneous non-interest income includes loan servicing fees, income from other investments, and other fees. This category of income increased $1.7 million for the three months ended March 31, 2026 compared to the same period in 2025. For the three months ended March 31, 2026, miscellaneous income increased compared to the same period in 2025 primarily due to higher fees earned on card-related arrangements, letters of credit and syndication fees.
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The table below presents additional selected information regarding mortgage banking for the respective periods.
Three Months Ended
(Dollars in thousands) March 31,
2026 March 31,
2025
Originations:
Retail originations $ 441,749 $ 348,468
Veterans First originations 152,244 111,985
Total originations for sale (A) $ 593,993 $ 460,453
Originations for investment 371,540 217,177
Total originations $ 965,533 $ 677,630
As percentage of originations for sale:
Retail originations 74 % 76 %
Veterans First originations 26 24
Purchases 52 % 77 %
Refinances 48 23
Production Margin:
Production revenue (B) (1)
$ 13,028 $ 9,941
Total originations for sale (A) $ 593,993 $ 460,453
Add: Current period end mandatory interest rate lock commitments to fund originations for sale (2)
218,156 197,297
Less: Prior period end mandatory interest rate lock commitments to fund originations for sale (2)
122,804 103,946
Total mortgage production volume (C) $ 689,345 $ 553,804
Production margin (B/C) 1.89 % 1.80 %
Mortgage Servicing:
Loans serviced for others (D) $ 12,534,513 $ 12,402,352
MSRs, at fair value (E) 195,276 196,307
Percentage of MSRs to loans serviced for others (E/D) 1.56 % 1.58 %
Servicing income $ 10,353 $ 10,611
MSR Fair Value Asset Activity
MSR - FV at Beginning of Period $ 195,023 $ 203,788
MSR - current period capitalization 6,434 4,669
MSR - collection of expected cash flows - paydowns (1,620) (1,590)
MSR - collection of expected cash flows - payoffs and repurchases (5,021) (3,046)
MSR - changes in fair value model assumptions 460 (7,514)
MSR Fair Value at end of period $ 195,276 $ 196,307
Summary of Mortgage Banking Revenue
Operational:
Production revenue (1)
$ 13,028 $ 9,941
MSR - current period capitalization 6,434 4,669
MSR - collection of expected cash flows - paydowns (1,620) (1,590)
MSR - collection of expected cash flows - payoffs and repurchases (5,021) (3,046)
Servicing Income 10,353 10,611
Other Revenue (45) (172)
Total operational mortgage banking revenue $ 23,129 $ 20,413
Fair Value:
MSR - changes in fair value model assumptions $ 460 $ (7,514)
(Loss) gain on derivative contract held as an economic hedge, net (900) 4,897
Changes in FV on early buy-out loans guaranteed by US Govt held-for-sale 707 2,733
Total fair value mortgage banking revenue $ 267 $ 116
Total mortgage banking revenue $ 23,396 $ 20,529
(1) Production revenue represents revenue earned from the origination and subsequent sale of mortgages, including gains on loans sold and fees from originations, changes in other related financial instruments carried at fair value, processing and other related activities, and excludes servicing fees, changes in the fair value of servicing rights and changes to the mortgage recourse obligation and other non-production revenue.
(2) Certain volume adjusted for the estimated pull-through rate of the loan, which represents the Company’s best estimate of the likelihood that a committed loan will ultimately fund.
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Non-interest Expense
The following table presents non-interest expense by category for the periods presented:
Three Months Ended $
Change %
Change
(Dollars in thousands) March 31,
2026 March 31,
2025
Salaries and employee benefits:
Salaries $ 129,086 $ 123,917 $ 5,169 4 %
Commissions and incentive compensation 57,407 52,536 4,871 9
Benefits 41,954 35,073 6,881 20
Total salaries and employee benefits 228,447 211,526 16,921 8
Software and equipment 35,654 34,717 937 3
Operating lease equipment 10,987 10,471 516 5
Occupancy, net 20,566 20,778 (212) (1)
Data processing 11,266 11,274 (8) (0)
Advertising and marketing 13,218 12,272 946 8
Professional fees 7,375 9,044 (1,669) (18)
Amortization of other acquisition-related intangible assets 4,958 5,618 (660) (12)
FDIC insurance 10,990 10,926 64 1
OREO expense, net 207 643 (436) (68)
Other:
Lending expenses, net of deferred originations costs 6,510 5,866 644 11
Travel and entertainment 5,426 5,270 156 3
Miscellaneous 27,028 27,685 (657) (2)
Total other 38,964 38,821 143 0
Total Non-interest Expense $ 382,632 $ 366,090 $ 16,542 5 %
NM - Not meaningful.
Notable contributions to the change in non-interest expense are as follows:
Salaries and employee benefits expense increased for the three months ended March 31, 2026 as compared to the same period in 2025. The increase was primarily due to annual merit increases and higher health insurance costs.
Professional fees expense decreased for the three months ended March 31, 2026 as compared to the same period in 2025 primarily due to lower consulting fees. Professional fees include legal, audit, and tax fees, external loan review costs, consulting arrangements and normal regulatory exam assessments.
Software and equipment expense increased for the three months ended March 31, 2026 as compared to the same period in 2025 as a result of higher software license fees as well as higher computer and software depreciation expense as the Company invests in enhancements to the digital customer experience, upgrades to infrastructure and enhancements to information security capabilities. Software and equipment expense includes furniture, equipment and computer software, depreciation, and repairs and maintenance costs.
Miscellaneous non-interest expense includes ATM expenses, correspondent bank charges, directors’ fees, telephone, postage, corporate insurance, dues and subscriptions, problem loan expenses and other miscellaneous operational losses and costs.
Income Taxes
The Company recorded income tax expense of $73.6 million in the first quarter of 2026 compared to $64.0 million in the first quarter of 2025. The effective tax rates were 24.4% in the first quarter of 2026 compared to 25.3% in the first quarter of 2025. The effective tax rates were partially impacted by the tax effects related to share-based compensation which fluctuate based on the Company’s stock price and timing of employee stock option exercises and vesting of other shared-based awards. The Company recorded net excess tax benefits of $6.6 million in the first quarter of 2026, compared to net excess tax benefits of $3.7 million in the first quarter of 2025 related to share-based compensation.
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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, 2026 totaled $450.6 million as compared to $419.0 million for the same period in 2025, an increase of $31.6 million, or 8%. The increase in the three month period 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 $77.9 million in the first quarter of 2026, an increase of $4.4 million, or 6%, when compared to the first quarter of 2025 total of $73.5 million. The increase in the three month period was primarily the result of an increase in mortgage banking revenue offset by an increase in losses recognized on investment securities. The community banking segment recorded provision for credit losses of $27.3 million for the three months ended March 31, 2026, compared to $22.4 million for the same period in 2025. The increase in provision for credit losses for the three month period was primarily the result of uncertainty within the macroeconomic forecast related to Baa corporate credit spread coupled with loan growth and higher net charge-offs. Non-interest expenses increased by $9.0 million for the three months ended March 31, 2026 compared to the same period in 2025, primarily due to an increase in salaries, commissions, and incentive compensation. The community banking segment’s net income for the quarter ended March 31, 2026 totaled $150.5 million, an increase of $16.3 million as compared to net income in the first quarter of 2025 of $134.3 million.
The specialty finance segment’s net interest income totaled $107.1 million for the quarter ended March 31, 2026, compared to $91.3 million for the same period in 2025, an increase of $15.8 million, or 17%. The increase for the three month period was primarily due to loan growth. The specialty finance segment’s provision for credit losses totaled $2.3 million for the three months ended March 31, 2026 compared to $1.5 million for the same period in 2025. The increase in provision for credit losses for the three month period was primarily the result of slightly higher net charge-offs within premium finance receivables coupled with uncertainty within the macroeconomic forecast related to Baa corporate credit spread, which impacted lease financing. The specialty finance segment’s non-interest income increased to $35.7 million from $31.0 million for the three months ended March 31, 2026 and 2025, respectively. Non-interest expenses increased by $6.2 million for the three months ended March 31, 2026 compared to the same period in 2025, primarily because of annual employee compensation increases and discretionary bonuses. Our property and casualty insurance premium finance operations, life insurance finance operations, lease financing operations and other specialty finance operations accounted for 40%, 26%, 24% and 10%, respectively, of the net revenues of our specialty finance business for the three month period ended March 31, 2026. The net income of the specialty finance segment for the quarter ended March 31, 2026 totaled $63.1 million as compared to $50.3 million for the quarter ended March 31, 2025.
The wealth management segment reported net interest income of $10.3 million for the first quarter of 2026 compared to $5.4 million in the same quarter of 2025, an increase of $5.0 million. Net interest income for this segment is primarily comprised of an allocation of net interest income earned by the community banking segment on non-interest-bearing and interest-bearing wealth management customer account balances on deposit at the banks. Wealth management customer account balances on deposit at the banks averaged $1.9 billion and $1.6 billion in the first three months of 2026 and 2025, respectively. This segment recorded non-interest income of $43.3 million for the first quarter of 2026 compared to $33.8 million for the first quarter of 2025. The increase in the three month period was primarily due to higher trust and asset management revenue driven by an increase in asset valuations. On a quarter-to-date basis, non-interest expense remained relatively stable for the three month period ended March 31, 2026 compared to the same period in 2025. Distribution of wealth management services through each bank continues to be a focus of the Company. The Company is committed to growing the wealth management segment in order to better service its customers and create a more diversified revenue stream. The wealth management segment’s net income totaled $13.8 million for the first quarter of 2026 compared to $4.5 million for the first quarter of 2025.
Financial Condition
Total assets were $72.2 billion at March 31, 2026, representing an increase of $6.3 billion, or 10%, when compared to March 31, 2025 and an increase of approximately $1.0 billion, or 6% on an annualized basis, when compared to December 31, 2025. Total funding, which includes deposits, all notes and advances, including secured borrowings and the junior subordinated debentures, was $63.3 billion at March 31, 2026, $62.2 billion at December 31, 2025, and $57.8 billion at March 31, 2025. See Notes (5), (6), (10), (11) and (12) of the Consolidated Financial Statements presented under Item 1 of this report for additional period-end detail on the Company’s interest-earning assets and funding liabilities.
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Interest-Earning Assets
The following table sets forth, by category, the composition of average earning asset balances and the relative percentage of total average earning assets for the periods presented:
Three Months Ended
March 31, 2026 December 31, 2025 March 31, 2025
(Dollars in thousands) Balance Percent Balance Percent Balance Percent
Mortgage loans held-for-sale $ 317,047 1 % $ 357,672 1 % $ 286,710 1 %
Loans, net of unearned income
Commercial 16,867,384 25 % 16,498,233 25 15,363,740 25
Commercial real estate
14,063,359 21 13,823,140 21 12,931,000 21
Home equity
473,334 1 484,916 1 449,095 1
Residential real estate
4,287,724 6 4,140,238 6 3,542,189 6
Premium finance receivables—property & casualty 7,946,434 12 8,196,606 12 7,192,332 12
Premium finance receivables—life insurance 9,074,298 14 8,905,172 14 8,248,690 14
Other loans
133,152 0 145,332 0 106,334 0
Total loans, net of unearned income (1)
$ 52,845,685 79 % $ 52,193,637 79 % $ 47,833,380 79 %
Liquidity management assets (2)
13,155,672 20 13,211,610 20 12,211,485 20
Other earning assets (3)
— 0 — 0 13,140 0
Total average earning assets $ 66,318,404 100 % $ 65,762,919 100 % $ 60,344,715 100 %
Total average assets $ 70,089,123 $ 69,492,268 $ 64,107,042
Total average earning assets to total average assets 95 % 95 % 94 %
(1) Includes non-accrual loans.
(2) Liquidity management assets include investment securities, other securities, interest-earning deposits with banks, federal funds sold and securities purchased under resale agreements.
(3) Other earning assets include brokerage customer receivables and trading account securities.
Mortgage loans held-for-sale. Mortgage loans held-for-sale represents such loans awaiting subsequent sale in the secondary market with such sales eliminating the interest-rate risk associated with these loans, as they are predominantly long-term fixed rate loans, and provide a source of non-interest revenue. The decrease in the average balance for the first quarter of 2026 as compared to the sequential period is primarily due to lower mortgage originations for sale.
Loans, net of unearned income. Growth realized in the combined commercial and commercial real estate loan categories for the first quarter of 2026 as compared to the sequential and prior year periods is primarily attributable to increased business development efforts. The aggregate balances of these loan categories comprised 59% in the first quarter of 2026, 58% in the fourth quarter of 2025 and 59% of the average loan portfolio in the first quarter of 2025.
Residential real estate loans averaged $4.3 billion in the first quarter of 2026, and increased $745.5 million, or 21%, from the average balance of $3.5 billion in the same period of 2025. Additionally, compared to the quarter ended December 31, 2025, the average balance increased $147.5 million, or 14% on an annualized basis. Growth is due to the Company continuing to originate non-agency mortgages that are held-for-investment.
The increase in the premium finance receivables during the first quarter of 2026 compared to the first quarter of 2025 was the result of effective marketing and customer servicing. Approximately $5.1 billion of premium finance receivables were originated in the first quarter of 2026 compared to $4.8 billion during the same period of 2025. Premium finance receivables consist of a property and casualty portfolio and a life portfolio comprising approximately 47% and 53%, respectively, of the average total balance of premium finance receivables for the first quarter of 2026, and 47% and 53%, respectively, for the first quarter of 2025.
Other loans represent a wide variety of personal and consumer loans to individuals. Consumer loans generally have shorter terms and higher interest rates than mortgage loans but generally involve more credit risk due to the type and nature of the collateral.
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Liquidity management assets. Funds that are not utilized for loan originations are used to purchase investment securities and short term money market investments, to sell as federal funds and to maintain in interest bearing deposits with banks. The balances of these assets can fluctuate based on management’s ongoing effort to manage liquidity and for asset liability management purposes. The Company will continue to prudently evaluate and utilize liquidity sources as needed, including the management of availability with the FHLB and FRB and utilization of the revolving credit facility with unaffiliated banks.
Maturities and Sensitivities of Loans to Changes in Interest Rates
The following table classifies the loan portfolio at March 31, 2026 by date at which the loans reprice or mature, and the type of rate exposure:
As of March 31, 2026 One year or less From one to five years From five to fifteen years After fifteen years
(In thousands) Total
Commercial
Fixed rate $ 521,142 $ 4,062,342 $ 2,182,827 $ 19,916 $ 6,786,227
Variable rate 10,975,702 1,292 — — 10,976,994
Total commercial $ 11,496,844 $ 4,063,634 $ 2,182,827 $ 19,916 $ 17,763,221
Commercial real estate
Fixed rate $ 860,484 $ 2,648,718 $ 345,954 $ 71,217 $ 3,926,373
Variable rate 10,225,429 10,419 65 — 10,235,913
Total commercial real estate $ 11,085,913 $ 2,659,137 $ 346,019 $ 71,217 $ 14,162,286
Home equity
Fixed rate $ 9,160 $ 1,141 $ — $ 8 $ 10,309
Variable rate 460,955 — — — 460,955
Total home equity $ 470,115 $ 1,141 $ — $ 8 $ 471,264
Residential real estate
Fixed rate $ 20,050 $ 4,549 $ 68,021 $ 1,052,334 $ 1,144,954
Variable rate 126,191 776,281 2,417,740 — 3,320,212
Total residential real estate $ 146,241 $ 780,830 $ 2,485,761 $ 1,052,334 $ 4,465,166
Premium finance receivables - property & casualty
Fixed rate $ 7,762,445 $ 127,886 $ — $ — $ 7,890,331
Variable rate — — — — —
Total premium finance receivables - property & casualty $ 7,762,445 $ 127,886 $ — $ — $ 7,890,331
Premium finance receivables - life insurance
Fixed rate $ 55,951 $ 88,566 $ — $ — $ 144,517
Variable rate 9,051,865 — — — 9,051,865
Total premium finance receivables - life insurance $ 9,107,816 $ 88,566 $ — $ — $ 9,196,382
Consumer and other
Fixed rate $ 29,654 $ 8,473 $ 857 $ 842 $ 39,826
Variable rate 82,816 — — — 82,816
Total consumer and other $ 112,470 $ 8,473 $ 857 $ 842 $ 122,642
Total per category
Fixed rate $ 9,258,886 $ 6,941,675 $ 2,597,659 $ 1,144,317 $ 19,942,537
Variable rate 30,922,958 787,992 2,417,805 — 34,128,755
Total loans, net of unearned income $ 40,181,844 $ 7,729,667 $ 5,015,464 $ 1,144,317 $ 54,071,292
Less: Existing cash flow hedging derivatives (1)
(5,900,000)
Total loans repricing or maturing in one year or less, adjusted for cash flow hedging activity $ 34,281,844
Variable Rate Loan Pricing by Index:
SOFR tenors (2)
$ 22,224,818
12- month CMT (3)
7,992,586
Prime 3,011,508
Fed Funds 625,005
Other U.S. Treasury tenors 175,047
Other 99,791
Total variable rate $ 34,128,755
(1) Excludes cash flow hedges with future effective starting dates and those that have matured as of March 31, 2026. The $5.90 billion of cash flow hedging derivatives includes receive fixed swaps, collars and floors of which $4.95 billion were impacting the cash flows of loans indexed to one-month SOFR as of March 31, 2026 .
(2) SOFR - Secured Overnight Financing Rate.
(3) CMT - Constant Maturity Treasury Rate.
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CREDIT QUALITY
Commercial and Commercial Real Estate Loan Portfolios
Our commercial and commercial real estate loan portfolios are comprised primarily of lines of credit for working capital purposes and commercial real estate loans. The table below sets forth information regarding the types and amounts of our loans within these portfolios as of March 31, 2026 and 2025:
As of March 31, 2026 As of March 31, 2025
Allowance Allowance
% of For Credit % of For Credit
Total Losses Total Losses
(Dollars in thousands) Balance Balance Allocation Balance Balance Allocation
Commercial $ 17,763,221 55.6 % $ 210,959 $ 15,931,326 55.2 % $ 201,183
Commercial Real Estate:
Construction and development $ 2,323,942 7.3 % $ 74,092 $ 2,448,881 8.5 % $ 71,388
Non-construction 11,838,344 37.1 % 150,778 10,466,020 36.3 138,622
Total commercial real estate $ 14,162,286 44.4 % $ 224,870 $ 12,914,901 44.8 % $ 210,010
Total commercial and commercial real estate $ 31,925,507 100.0 % $ 435,829 $ 28,846,227 100.0 % $ 411,193
Commercial real estate - primary collateral location by state:
Illinois $ 7,220,810 51.0 % $ 6,911,417 53.5 %
Wisconsin 872,118 6.2 908,337 7.0
Michigan 865,943 6.1 893,828 6.9
Total primary markets $ 8,958,871 63.3 % $ 8,713,582 67.4 %
Florida 540,342 3.8 437,500 3.4
Indiana 513,564 3.6 440,278 3.4
Texas 385,490 2.7 306,709 2.4
Georgia 318,222 2.3 246,730 1.9
California 318,014 2.3 261,860 2.0
Colorado 311,650 2.2 250,564 1.9
Arizona 301,915 2.1 224,201 1.7
Tennessee 249,965 1.8 296,895 2.3
North Carolina 237,621 1.7 187,549 1.5
Other 2,026,632 14.2 1,549,033 12.1
Total commercial real estate $ 14,162,286 100.0 % $ 12,914,901 100.0 %
We make commercial loans for many purposes, including working capital lines, which are generally renewable annually and supported by business assets, personal guarantees and additional collateral. Such loans may vary in size based on customer need. As a result of growth and impacts related to uncertainty regarding future economic performance, the Company’s commercial loan portfolio allowance for credit losses increased to $211.0 million as of March 31, 2026 compared to $201.2 million as of March 31, 2025.
Our commercial real estate loans are generally secured by a first mortgage lien and assignment of rents on the property. Since most of our bank branches are located in the Chicago metropolitan area, southern Wisconsin and west Michigan, 63.3% of our commercial real estate loan portfolio is located in this region as of March 31, 2026. We have been able to effectively manage our total non-performing commercial real estate loans, aided by our credit management process. As of March 31, 2026, our allowance for credit losses related to this portfolio was $224.9 million compared to $210.0 million as of March 31, 2025 . The increase in the allowance for credit los ses is primarily a result of growth in the portfolio and impacts related to uncertainty regarding future economic performance. The table below sets forth the commercial real estate loans by property type and owner vs. non-owner occupied.
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(In thousands) March 31, 2026 March 31, 2025
Commercial Real Estate: Owner Occupied Non-Owner Occupied Total % of Total Average Size of Loan Owner Occupied Non-Owner Occupied Total % of Total Average Size of Loan
Residential construction $ 1,323 $ 51,774 $ 53,097 0 % $ 487 $ 1,530 $ 54,319 $ 55,849 0 % $ 458
Commercial construction 185,124 1,774,251 1,959,375 14 5,099 201,889 1,884,908 2,086,797 16 5,296
Land 5,472 305,998 311,470 2 1,811 5,687 300,548 306,235 2 1,781
Office 283,299 1,369,183 1,652,482 12 1,569 288,398 1,353,157 1,641,555 13 1,505
Industrial 1,070,939 2,253,038 3,323,977 24 2,236 932,404 1,745,151 2,677,555 21 1,850
Retail 346,735 1,122,923 1,469,658 10 1,280 343,206 1,059,631 1,402,837 11 1,207
Multi-family 97,338 3,468,081 3,565,419 25 1,578 100,647 2,990,667 3,091,314 24 1,328
Mixed use and other 628,158 1,198,650 1,826,808 13 1,314 592,843 1,059,916 1,652,759 13 1,198
Total commercial real estate $ 2,618,388 $ 11,543,898 $ 14,162,286 100 % $ 1,769 $ 2,466,604 $ 10,448,297 $ 12,914,901 100 % $ 1,595
The Company also participates in mortgage warehouse lending, which is included above within commercial, industrial and other, by providing interim funding to unaffiliated mortgage bankers to finance residential mortgages originated by such bankers for sale into the secondary market. The Company’s loans to the mortgage bankers are secured by the business assets of the mortgage companies as well as the specific mortgage loans funded by the Company, after they have been pre-approved for purchase by third party end lenders. The Company may also provide interim financing for packages of mortgage loans on a bulk basis in circumstances where the mortgage bankers desire to competitively bid on a number of mortgages for sale as a package in the secondary market.
Past Due Loans and Non-Performing Assets
Our ability to manage credit risk depends in large part on our ability to properly identify and manage problem loans. To do so, the Company operates a credit risk rating system under which our credit management personnel assigns a credit risk rating to each loan at the time of origination and review loans on a regular basis to determine each loan’s credit risk rating on a scale of 1 through 10 with higher scores indicating higher risk. Description of the Company’s credit risk rating structure used is included in Item 7 - Management’s Discussion and Analysis of Financial Condition and Results of Operations of the 2025 Form 10-K.
If based on current information and events, it is probable that the Company will be unable to collect all amounts due to it according to the contractual terms of the loan agreement, a loan is individually assessed for measuring the allowance for credit losses and, if necessary, a reserve is established. In determining the appropriate reserve for collateral-dependent loans, the Company considers the results of appraisals for the associated collateral.
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Non-performing Assets (1)
The following table sets forth the Company's non-performing assets performing under the contractual terms of the loan agreement as of the dates shown.
(Dollars in thousands) March 31,
2026 December 31,
2025 March 31,
2025
Loans past due greater than 90 days and still accruing:
Commercial $ — $ — $ 46
Commercial real estate — — —
Home equity — — —
Residential real estate — — —
Premium finance receivables—property and casualty 15,823 19,115 18,081
Premium finance receivables—life insurance — — 2,962
Consumer and other 10 42 98
Total loans past due greater than 90 days and still accruing 15,833 19,157 21,187
Nonaccrual loans:
Commercial 87,750 78,059 70,560
Commercial real estate 16,757 25,147 26,187
Home equity 1,142 1,221 2,070
Residential real estate 27,360 32,862 22,522
Premium finance receivables—property and casualty 33,891 29,354 29,846
Premium finance receivables—life insurance — — —
Consumer and other 16 8 18
Total nonaccrual loans 166,916 166,651 151,203
Total non-performing loans:
Commercial 87,750 78,059 70,606
Commercial real estate 16,757 25,147 26,187
Home equity 1,142 1,221 2,070
Residential real estate 27,360 32,862 22,522
Premium finance receivables—property and casualty 49,714 48,469 47,927
Premium finance receivables—life insurance — — 2,962
Consumer and other 26 50 116
Total non-performing loans $ 182,749 $ 185,808 $ 172,390
Other real estate owned 17,439 20,839 22,625
Total non-performing assets $ 200,188 $ 206,647 $ 195,015
Total non-performing loans by category as a percent of its own respective category’s period-end balance:
Commercial 0.49 % 0.46 % 0.44 %
Commercial real estate 0.12 0.18 0.20
Home equity 0.24 0.25 0.45
Residential real estate 0.61 0.76 0.61
Premium finance receivables—property and casualty 0.63 0.59 0.66
Premium finance receivables—life insurance — — 0.04
Consumer and other 0.02 0.04 0.10
Total non-performing loans 0.34 % 0.35 % 0.35 %
Total non-performing assets, as a percentage of total assets 0.28 % 0.29 % 0.30 %
Total nonaccrual loans as a percentage of total loans 0.31 % 0.31 % 0.31 %
Allowance for credit losses as a percentage of nonaccrual loans 282.38 % 276.15 % 296.25 %
(1) Excludes early buy-out loans guaranteed by U.S. government agencies. Early buy-out loans are insured or guaranteed by the FHA or the U.S. Department of Veterans Affairs, subject to indemnifications and insurance limits for certain loans.
At this time, management believes reserves are appropriate to absorb losses that are expected upon the ultimate resolution of these credits. Significant increases may occur in subsequent periods due to ongoing macroeconomic uncertainty and related impacts on borrowers. Management will continue to actively review and monitor its loan portfolios, in an effort to identify problem credits in a timely manner.
Loan Portfolio Aging
As of March 31, 2026, excluding early buy-out loans guaranteed by U.S. government agencies, $66.7 million, or 0.1% of all loans, were 60 to 89 days (or two payments) past due and $284.3 million, or 0.5% of all loans, were 30 to 59 days (or one payment) past due. As of December 31, 2025, excluding early buy-out loans guaranteed by U.S. government agencies, $94.8 million, or 0.2% of all loans, were 60 to 89 days (or two payments) past due and $264.7 million, or 0.5% of all loans, were 30 to 59 days (or one payment) past due. Many of the commercial and commercial real estate loans shown as 60 to 89 days and 30
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to 59 days past due are included on the Company’s internal problem loan reporting system. Loans on this system are closely monitored by management on a monthly basis. The Company's home equity and residential loan portfolios continue to exhibit low delinquency ratios. Home equity loans at March 31, 2026 that were current with regard to the contractual terms of the loan agreement represent 99.2% of the total home equity portfolio. Residential real estate loans, excluding early buy-out loans guaranteed by U.S. government agencies, at March 31, 2026 that were current with regards to the contractual terms of the loan agreements comprise 98.6% of total residential real estate loans outstanding. For more information regarding delinquent loans as of March 31, 2026, see Note (7) “Allowance for Credit Losses” in Item 1 of this report.
Non-performing Loans Rollforward, excluding early buy-out loans guaranteed by U.S. government agencies
The table below presents a summary of non-performing loans for the periods presented:
Three Months Ended
March 31, March 31,
(In thousands) 2026 2025
Balance at beginning of period $ 185,808 $ 170,823
Additions from becoming non-performing in the respective period 24,969 27,721
Return to performing status (3,663) (1,207)
Payments received (13,780) (15,965)
Transfer to OREO or other assets (868) —
Charge-offs (10,930) (8,600)
Net change for premium finance receivables 1,213 (382)
Balance at end of period $ 182,749 $ 172,390
Allowance for Credit Losses
The allowance for credit losses, specifically the allowance for loans losses and the allowance for unfunded commitment losses, represents management’s estimate of lifetime expected credit losses in the loan portfolio. The allowance for credit losses is determined quarterly using a methodology that incorporates important risk characteristics of each loan. A description of how the Company determines the allowance for credit losses is included in Item 7 - Management’s Discussion and Analysis of Financial Condition and Results of Operations of the 2025 Form 10-K.
Management determined that the allowance for credit losses was appropriate at March 31, 2026, and that the loan portfolio is well diversified and well secured, without undue concentration in any specific risk area. While this process involves a high degree of management judgment, the allowance for credit losses is based on a comprehensive, well documented, and consistently applied analysis of the Company’s loan portfolio. This analysis takes into consideration all available information existing as of the financial statement date, including environmental factors such as economic, industry, geographical and political factors, when considered applicable. The relative level of allowance for credit losses is reviewed and compared to industry peers. This review encompasses levels of total non-performing loans, portfolio mix, portfolio concentrations and overall levels of net charge-off. Historical trending of both the Company’s results and the industry peers is also reviewed to analyze comparative significance.
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Allowance for Credit Losses
The following table summarizes the activity in our allowance for credit losses, specifically related to loans and unfunded lending-related commitments, during the periods indicated.
Three Months Ended
(Dollars in thousands) March 31,
2026 March 31,
2025
Allowance for credit losses at beginning of period $ 460,205 $ 436,603
Provision for credit losses - other 29,597 23,974
Other adjustments (50) 4
Charge-offs:
Commercial 8,428 9,722
Commercial real estate 7,260 454
Home equity — —
Residential real estate 350 —
Premium finance receivables - property & casualty 7,431 7,114
Premium finance receivables - life insurance — 12
Consumer and other 180 147
Total charge-offs 23,649 17,449
Recoveries:
Commercial 1,419 929
Commercial real estate 6 12
Home equity 303 216
Residential real estate 1 136
Premium finance receivables - property & casualty 3,437 3,487
Premium finance receivables - life insurance — —
Consumer and other 65 29
Total recoveries 5,231 4,809
Net charge-offs (18,418) (12,640)
Allowance for credit losses at period end $ 471,334 $ 447,941
Annualized net charge-offs (recoveries) by category as a percentage of its own respective category’s average:
Commercial 0.17 % 0.23 %
Commercial real estate 0.21 0.01
Home equity (0.26) (0.20)
Residential real estate 0.03 (0.02)
Premium finance receivables - property & casualty 0.20 0.20
Premium finance receivables - life insurance — 0.00
Consumer and other 0.35 0.45
Total loans, net of unearned income 0.14 % 0.11 %
Loans at period-end $ 54,071,292 $ 48,708,390
Allowance for loan losses as a percentage of loans at period end 0.72 % 0.78 %
Allowance for loan and unfunded loan-related commitment losses as a percentage of loans at period end 0.87 0.92
See Note (7) “Allowance for Credit Losses” of the Consolidated Financial Statements presented under Item 1 of this report for further discussion of activity within the allowance for credit losses during the period and the relationship with respective loan balances for each loan category and the total loan portfolio.
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Other Real Estate Owned
In certain circumstances, the Company is required to take action against the real estate collateral of specific loans. The Company uses foreclosure only as a last resort for dealing with borrowers experiencing financial hardships. The Company employs extensive contact and restructuring procedures to attempt to find other solutions for our borrowers. The tables below present a summary of other real estate owned and show the activity for the respective periods and the balance for each property type:
Three Months Ended
(In thousands) March 31,
2026 March 31,
2025
Balance at beginning of period $ 20,839 $ 23,116
Disposal/resolved (4,760) —
Transfers in at fair value, less costs to sell 1,360 —
Fair value adjustments — (491)
Balance at end of period $ 17,439 $ 22,625
Period End
(In thousands) March 31,
2026 December 31,
2025 March 31,
2025
Residential real estate $ — $ — $ —
Commercial real estate 17,439 20,839 22,625
Total $ 17,439 $ 20,839 $ 22,625
Deposits
Total deposits at March 31, 2026 were $58.9 billion, an increase of $5.3 billion, or 10%, compared to total deposits at March 31, 2025. See Note (10) “Deposits” to the Consolidated Financial Statements in Item 1 of this report for a summary of period end deposit balances.
The following table sets forth, by category, the maturity of time certificates of deposit as of March 31, 2026:
Time Certificates of Deposit
Maturity/Re-pricing Analysis
As of March 31, 2026
(Dollars in thousands)
Total Time
Certificates of
Deposits Weighted-Average
Rate of Maturing
Time Certificates
of Deposit
1-3 months $ 2,650,966 3.45 %
4-6 months 5,018,880 3.51
7-9 months 1,589,764 3.37
10-12 months 822,123 3.40
13-18 months 243,686 2.88
19-24 months 70,182 2.85
24+ months 91,180 2.72
Total $ 10,486,781 3.44 %
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The following table sets forth, by category, the composition of average deposit balances and the relative percentage of total average deposits for the periods presented:
Three Months Ended
March 31, 2026 December 31, 2025 March 31, 2025
(Dollars in thousands) Balance Percent Balance Percent Balance Percent
Non-interest-bearing $ 10,963,887 20 % $ 11,080,254 20 % $ 10,732,156 21 %
NOW and interest-bearing demand deposits 6,081,218 11 6,133,333 11 6,046,189 11
Wealth management deposits 1,858,560 3 1,925,808 3 1,574,480 3
Money market 21,156,125 37 20,475,659 36 17,581,141 34
Savings 6,921,251 12 6,814,263 12 6,479,444 13
Time certificates of deposit 9,782,112 17 10,045,136 18 9,406,126 18
Total average deposits $ 56,763,153 100 % $ 56,474,453 100 % $ 51,819,536 100 %
Total average deposits for the first quarter of 2026 were $56.8 billion, an increase of $4.9 billion, or 10%, from the first quarter of 2025. Total deposits increased in the first quarter of 2026 as compared to the first quarter of 2025 primarily as a result of the Company’s increased marketing efforts to retain and attract deposits to support continued loan growth.
Wealth management deposits are funds from the brokerage customers of Wintrust Investments, CDEC and trust and asset management customers of the Company which have been placed into deposit accounts of the banks (“wealth management deposits” in the table above). Wealth Management deposits consist primarily of money market accounts. Consistent with reasonable interest rate risk parameters, these funds have generally been invested in loan production of the banks as well as other investments suitable for banks.
Brokered Deposits
While the Company obtains a portion of its total deposits through brokered deposits, the Company does so primarily as an asset-liability management tool to assist in the management of interest rate risk, and the Company does not consider brokered deposits to be a vital component of its current liquidity resources. Historically, brokered deposits have represented a small component of the Company’s total deposits outstanding, as set forth in the table below:
March 31, December 31,
(Dollars in thousands) 2026 2025 2025 2024 2023
Total deposits $ 58,914,382 $ 53,570,038 $ 57,717,191 $ 52,512,349 $ 45,397,170
Brokered deposits (1)
4,322,797 4,214,776 4,123,822 3,598,102 4,216,718
Brokered deposits as a percentage of total deposits (1)
7.3 % 7.9 % 7.1 % 6.9 % 9.3 %
(1) Brokered deposits include certificates of deposit obtained through deposit brokers, deposits received through the Certificate of Deposit Account Registry Program, as well as wealth management deposits of brokerage customers from unaffiliated companies which have been placed into deposit accounts of the banks.
Other Funding Sources
Although deposits are the Company’s primary source of funding its interest-earning assets, the Company’s ability to manage the types and terms of deposits is somewhat limited by customer preferences and market competition. As a result, in addition to deposits and the issuance of equity securities and the retention of earnings, the Company uses several other funding sources to support its growth. These sources include FHLB advances, notes payable, short-term borrowings, secured borrowings, subordinated debt and junior subordinated debentures. The Company evaluates the terms and unique characteristics of each source, as well as its asset-liability management position, in determining the use of such funding sources.
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The following table sets forth, by category, the composition of the average balances of other funding sources for the quarterly periods presented:
Three Months Ended
March 31, December 31, March 31,
(In thousands) 2026 2025 2025
FHLB advances $ 3,451,312 $ 3,203,483 $ 3,151,309
Other borrowings:
Notes payable
— 101,581 142,686
Short-term borrowings 22 44 23
Secured borrowings 392,037 389,942 382,668
Other 50,141 55,940 56,762
Total other borrowings $ 442,200 $ 547,507 $ 582,139
Subordinated notes 298,661 298,576 298,306
Junior subordinated debentures 253,566 253,566 253,566
Total other funding sources $ 4,445,739 $ 4,303,132 $ 4,285,320
See Note (11) “FHLB Advances, Other Borrowings and Subordinated Notes” and Note (12) “Junior Subordinated Debentures” of the Consolidated Financial Statements presented under Item 1 of this report for details of period end balances and other information for these various funding sources. The Company hereby incorporates by reference Note (11) and Note (12) of the Consolidated Financial Statements presented under Item 1 of this report in its entirety.
Shareholders’ Equity
The following tables reflect various consolidated measures of capital as of the dates presented and the capital guidelines established for a bank holding company:
March 31, 2026 December 31,
2025 March 31,
2025
Tier 1 Leverage Ratio 9.8 % 9.6 % 9.6 %
Risk-based capital ratios:
Tier 1 Capital Ratio 11.1 11.0 10.8
Common Equity Tier 1 Capital Ratio 10.4 10.3 10.1
Total Capital Ratio 12.6 12.4 12.5
Other ratio:
Total average equity-to-total average assets (1)
10.5 10.3 10.1
(1) Based on quarterly average balances.
Minimum
Capital
Requirements Minimum Ratio + Capital Conservation Buffer (1)
Minimum Well
Capitalized (2)
Tier 1 Leverage Ratio 4.0 % N/A N/A
Risk-based capital ratios:
Tier 1 Capital Ratio 6.0 8.5 6.0
Common Equity Tier 1 Capital Ratio 4.5 7.0 N/A
Total Capital Ratio 8.0 10.5 10.0
(1) Reflects the Capital Conservation Buffer of 2.5%.
(2) Reflects the well-capitalized standard applicable to the Company for purposes of the Federal Reserve’s Regulation Y. The Federal Reserve has not yet revised the well-capitalized standard for bank holding companies to reflect the higher capital requirements imposed under the U.S. Basel III Rule or to add Common Equity Tier 1 Capital Ratio and Tier 1 Leverage Ratio requirements to this standard. As a result, the Common Equity Tier 1 Capital Ratio and Tier 1 Leverage Ratio are denoted as “N/A” in this column. If the Federal Reserve were to apply the same or a very similar well-capitalized standard to bank holding companies as the standard applicable to our subsidiary banks, we believe the Company’s capital ratios as of March 31, 2026 would exceed such revised well-capitalized standard.
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The Company’s principal sources of funds at the holding company level are dividends from its subsidiaries, borrowings under its loan agreement with unaffiliated banks and proceeds from the issuances of subordinated debt and additional equity. Refer to Notes (11) and (12) of the Consolidated Financial Statements in Item 1 for further information on these various funding sources. See Note (23) “Shareholders’ Equity” of the Consolidated Financial Statements presented under Item 7 of the 2025 Form 10-K for details on the Company’s issuance of Series F Preferred Stock and associated Depositary Shares in May 2025 and redemption of the Company’s Series D Preferred Stock and Series E Preferred Stock in July 2025.
The Board of Directors approves dividends from time to time, however, the ability to declare a dividend is limited by the Company’s financial condition, the terms of the Company’s Preferred Stock, the terms of the Company’s Trust Preferred Securities offerings and under certain financial covenants in the Company’s credit facilities. In January of 2026, the Company declared a quarterly cash dividend of $0.55 per common share. In January, April, July and October of 2025, the Company declared a quarterly cash dividend of $0.50 per common share.
At the April 2026 meeting of the Board of Directors, a quarterly cash dividend of $0.55 per common share ($2.20 on an annualized basis) was declared. It is payable on May 28, 2026 to shareholders of record as of May 14, 2026.
The Company continues to leverage its capital management framework to assess and monitor risk when making capital decisions. Management is committed to maintaining the Company’s capital levels above the “Well Capitalized” levels established by the FRB for bank holding companies.
LIQUIDITY
The Company manages the liquidity position of its banking operations to ensure that sufficient funds are available to meet customers’ needs for loans and deposit withdrawals. The management process includes the utilization of stress testing processes and other aspects of the Company's liquidity management framework to assess and monitor risk, and inform decision making. The liquidity to meet the demands of customers is provided by maturing assets, liquid assets that can be converted to cash and the ability to attract funds from external sources. Liquid assets refer to money market assets such as Federal funds sold and interest-bearing deposits with banks, as well as available-for-sale debt securities and equity securities with readily determinable fair values which are not pledged to secure public funds. In addition, trade date receivables represent certain sales or calls of available-for-sale securities that await cash settlement, typically in the month following the trade date.
We maintain our liquid assets to ensure that we would have the balance sheet strength to serve our clients. As a result, the Company believes that it has sufficient funds and access to funds to effectively meet its working capital and other needs. The Company will continue to prudently evaluate liquidity sources, including the management of availability with the FHLB and FRB and utilization of the revolving credit facility with unaffiliated banks. Please refer to Management’s Discussion and Analysis of Financial Condition and Results of Operation -Interest-Earning Assets, -Deposits, -Other Funding Sources and -Shareholders’ Equity sections of this report for additional information regarding the Company’s liquidity position.
INFLATION
A banking organization’s assets and liabilities are primarily monetary. Changes in the rate of inflation typically do not have as great an impact on the financial condition of a bank as do changes in interest rates. Moreover, interest rates do not necessarily change at the same percentage as inflation. Accordingly, changes in inflation are not expected to have as material an impact on the Company’s business as entities operating in other industries. An analysis of the Company’s asset and liability structure provides the best indication of how the organization is positioned to respond to changing interest rates. See “Quantitative and Qualitative Disclosures About Market Risk” section of this report for additional information.
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,” “possible,” “will,” “may,” “should,” “would” and “could.” Forward-looking statements and information are not historical facts, are premised on many factors and assumptions, and represent only management’s expectations, estimates and projections regarding future events. Similarly, these statements are not guarantees of future performance and involve certain risks and uncertainties that are difficult to predict, and which may include, but are not limited to, those listed below and the Risk Factors discussed under Item 1A of the Company’s 2025 Annual Report on Form 10-K and in any of the Company’s subsequent Securities and Exchange Commission filings. The Company intends such forward-looking statements to be covered by the safe harbor provisions for forward-looking statements contained in the Private Securities Litigation Reform Act of 1995, and is including this statement for purposes of invoking these safe harbor provisions. Such forward-looking statements may be
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deemed to include, among other things, statements relating to the Company’s future financial performance, the performance of its loan portfolio, the expected amount of future credit reserves and charge-offs, delinquency trends, growth plans, regulatory developments, securities that the Company may offer from time to time, and management’s long-term performance goals, as well as statements relating to the anticipated effects on the Company’s financial condition and results of operations from expected developments or events, the Company’s business and growth strategies, including future acquisitions of banks, specialty finance or wealth management businesses, internal growth and plans to form additional de novo banks or branch offices. Actual results could differ materially from those addressed in the forward-looking statements as a result of numerous factors and uncertainties, including the following:
• economic conditions and events that affect the economy, housing prices, the job market and other factors that may adversely affect the Company’s liquidity and the performance of its loan portfolios, including an actual or threatened U.S. government shutdown, debt default or rating downgrade, particularly in the markets in which it operates;
• negative effects suffered by us or our customers resulting from changes in U.S. or international trade policies;
• the extent of defaults and losses on the Company’s loan portfolio, which may require further increases in its allowance for credit losses;
• estimates of fair value of certain of the Company’s assets and liabilities, which could change in value significantly from period to period;
• the financial success and economic viability of the borrowers of our commercial loans;
• commercial real estate market conditions in the Chicago metropolitan area, southern Wisconsin and west Michigan;
• the extent of commercial and consumer delinquencies and declines in real estate values, which may require further increases in the Company’s allowance for credit losses;
• inaccurate assumptions in our analytical and forecasting models used to manage our loan portfolio;
• changes in the level and volatility of interest rates, the capital markets and other market indices that may affect, among other things, the Company’s liquidity and the value of its assets and liabilities;
• the interest rate environment, including a prolonged period of low interest rates or rising interest rates, either broadly or for some types of instruments, which may affect the Company’s net interest income and net interest margin, and which could materially adversely affect the Company’s profitability;
• competitive pressures in the financial services business which may affect the pricing of the Company’s loan and deposit products as well as its services (including wealth management services), which may result in loss of market share and reduced income from deposits, loans, advisory fees and income from other products;
• failure to identify and complete favorable acquisitions in the future or unexpected losses, difficulties or developments related to the Company’s recent or future acquisitions;
• unexpected difficulties and losses related to FDIC-assisted acquisitions;
• harm to the Company’s reputation;
• any negative perception of the Company’s financial strength;
• ability of the Company to raise additional capital on acceptable terms when needed;
• disruption in capital markets, which may lower fair values for the Company’s investment portfolio;
• ability of the Company to use technology to provide products and services that will satisfy customer demands and create efficiencies in operations and to manage risks associated therewith;
• failure or breaches of our security systems or infrastructure, or those of third parties;
• security breaches, including denial of service attacks, hacking, social engineering attacks, malware intrusion and similar events or data corruption attempts and identity theft;
• adverse effects on our information technology systems, or those of third parties, resulting from failures, human error or cyberattacks (including ransomware);
• 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;
• accuracy and completeness of information the Company receives about customers and counterparties to make credit decisions;
• ability of the Company to attract and retain senior management experienced in the banking and financial services industries;
• environmental liability risk associated with lending activities;
• the impact of any claims or legal actions to which the Company is subject, including any effect on our reputation;
• losses incurred in connection with repurchases and indemnification payments related to mortgages and increases in reserves associated therewith;
• the loss of customers as a result of technological changes allowing consumers to complete their financial transactions without the use of a bank;
• the soundness of other financial institutions and the impact of recent failures of financial institutions, including broader financial institution liquidity risk and concerns;
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• the expenses and delayed returns inherent in opening new branches and de novo banks;
• liabilities, potential customer loss or reputational harm related to closings of existing branches;
• examinations and challenges by tax authorities, and any unanticipated impact of tax legislation;
• changes in accounting standards, rules and interpretations, and the impact on the Company’s financial statements;
• the ability of the Company to receive dividends from its subsidiaries;
• a decrease in the Company’s capital ratios, including as a result of declines in the value of its loan portfolios, or otherwise;
• legislative or regulatory changes, particularly changes in regulation of financial services companies and/or the products and services offered by financial services companies;
• changes in laws, regulations, rules, standards and contractual obligations regarding data privacy and cybersecurity;
• a lowering of our credit rating;
• changes in U.S. monetary policy and changes to the Federal Reserve’s balance sheet, including changes in response to persistent inflation or otherwise;
• regulatory restrictions upon our ability to market our products to consumers and limitations on our ability to profitably operate our mortgage business;
• increased costs of compliance, heightened regulatory capital requirements and other risks associated with changes in regulation and the regulatory environment;
• the impact of heightened capital requirements;
• increases in the Company’s FDIC insurance premiums, or the collection of special assessments by the FDIC;
• delinquencies or fraud with respect to the Company’s premium finance business;
• credit downgrades among commercial and life insurance providers that could negatively affect the value of collateral securing the Company’s premium finance loans;
• the Company’s ability to comply with covenants under its credit facility;
• fluctuations in the stock market, which may have an adverse impact on the Company’s wealth management business and brokerage operation; and
• widespread outages of operational, communication, or other systems, whether internal or provided by third parties, natural or other disasters (including acts of terrorism, armed hostilities and pandemics), and the effects of climate change.
Therefore, there can be no assurances that future actual results will correspond to any forward-looking statement. The reader is cautioned not to place undue reliance on any forward-looking statement made by the Company. Any such statement speaks only as of the date the statement was made or as of such date that may be referenced within the statement. The Company undertakes no obligation to update any forward-looking statement to reflect the impact of circumstances or events after the date of this report. Persons are advised, however, to consult further disclosures management makes on related subjects in its reports filed with the Securities and Exchange Commission and in its press releases.
ITEM 3
QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK
As an ongoing part of its financial strategy, the Company attempts to manage the impact of fluctuations in market interest rates on net interest income. This effort entails providing a reasonable balance between interest rate risk, credit risk, liquidity risk and maintenance of yield. Asset-liability management policies are established and monitored by management in conjunction with the boards of directors of the banks, subject to general oversight by the Risk Management Committee of the Company’s Board. The policies establish guidelines for acceptable limits on the sensitivity of the market value of assets and liabilities to changes in interest rates.
Interest rate risk arises when the maturity or re-pricing periods and interest rate indices of the interest-earning assets, interest-bearing liabilities, and derivative financial instruments are different. It is the risk that changes in the level of market interest rates will result in disproportionate changes in the value of, and the net earnings generated from, the Company’s interest-earning assets, interest-bearing liabilities and derivative financial instruments. The Company continuously monitors not only the organization’s current net interest margin, but also the historical trends of these margins. In addition, management attempts to identify potential adverse changes in net interest income in future years as a result of interest rate fluctuations by performing simulation analysis of various interest rate environments. If a potential adverse change in net interest margin and/or net income is identified, management is prepared to take appropriate action with its asset-liability structure to mitigate these potentially adverse situations. Please refer to Item 2 “Management’s Discussion and Analysis of Financial Condition and Results of Operations” for further discussion of the net interest margin.
Since the Company’s primary source of interest-bearing liabilities is from customer deposits, the Company’s ability to manage the types and terms of such deposits is somewhat limited by customer preferences and local competition in the market areas in which the banks operate. The rates, terms and interest rate indices of the Company’s interest-earning assets result primarily
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from the Company’s strategy of investing in loans and securities that permit the Company to limit its exposure to interest rate risk, together with credit risk, while at the same time achieving an acceptable interest rate spread.
The Company’s exposure to interest rate risk is reviewed on a regular basis by management and the Risk Management Committees of the boards of directors of the banks and the Company. The objective of the review is to measure the effect on net income and to adjust balance sheet and derivative financial instruments to minimize the inherent risk while at the same time maximize net interest income.
The following interest rate scenarios display the percentage change in net interest income over a one-year time horizon assuming increases and decreases of 100 and 200 basis points as compared to projected net interest income in a scenario with no assumed rate changes. The Static Shock Scenario results incorporate actual cash flows and repricing characteristics for balance sheet instruments following an instantaneous, parallel change in market rates based upon a static (i.e. no growth or constant) balance sheet. Conversely, the Ramp Scenario results incorporate management’s projections of future volume and pricing of each of the product lines following a gradual, parallel change in market rates over twelve months. Actual results may differ from these simulated results due to timing, magnitude, and frequency of interest rate changes as well as changes in market conditions and management strategies. The interest rate sensitivity for both the Static Shock and Ramp Scenarios at March 31, 2026, December 31, 2025 and March 31, 2025 is as follows:
Static Shock Scenarios +200
Basis
Points +100
Basis
Points -100
Basis
Points -200
Basis
Points
March 31, 2026 (0.8) % (0.1) % (1.0) % (1.9) %
December 31, 2025 (1.6) (0.5) (0.5) (0.8) %
March 31, 2025 (1.8) (0.6) (0.2) (1.2) %
Ramp Scenarios +200
Basis
Points +100
Basis
Points -100
Basis
Points -200
Basis
Points
March 31, 2026 (0.1) % 0.0 % (0.1) % (0.3) %
December 31, 2025 (0.0) 0.1 (0.1) (0.2) %
March 31, 2025 0.2 0.2 (0.1) (0.5) %
One method utilized by financial institutions, including the Company, to manage interest rate risk is to enter into derivative financial instruments. Derivative financial instruments include interest rate swaps, interest rate caps, floors and collars, futures, forwards, option contracts and other financial instruments with similar characteristics. Additionally, the Company enters into commitments to fund certain mortgage loans (interest rate locks) to be sold into the secondary market and forward commitments for the future delivery of mortgage loans to third party investors. See Note (14) “Derivative Financial Instruments” of the Consolidated Financial Statements in Item 1 of this report for further information on the Company’s derivative financial instruments.
As shown above, the magnitude of potential changes in net interest income in various interest rate scenarios has continued to remain relatively neutral. Management has taken action to reposition its sensitivity to interest rates to stabilize net interest margin following the rise in short term interest rates in 2022 and 2023. To this end, management has executed various derivative instruments including collars, floors, and receive-fixed swaps to hedge variable-rate loan exposures. The Company will continue to monitor current and projected interest rates and may execute additional derivatives to mitigate potential fluctuations in the net interest margin in future periods.
Periodically, the Company enters into certain covered call option transactions related to certain securities held by the Company. The Company uses these option transactions (rather than entering into other derivative interest rate contracts, such as interest rate floors) to economically hedge positions and compensate for net interest margin compression by increasing the total return associated with the related securities through fees generated from these options. Although the revenue received from these options is recorded as non-interest income rather than interest income, the increased return attributable to the related securities from these options contributes to the Company’s overall profitability. The Company’s exposure to interest rate risk may be impacted by these transactions. To further mitigate this risk, the Company may acquire fixed-rate term debt or use financial derivative instruments. There were no covered call options outstanding as of March 31, 2026 and March 31, 2025. See Note (14) “Derivative Financial Instruments” of the Consolidated Financial Statements in Item 1 of this report for further information on the Company’s fees from covered call options for the three months ended March 31, 2026 and March 31, 2025.
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ITEM 4
CONTROLS AND PROCEDURES
As of the end of the period covered by this report, management of the Company, under the supervision and with the participation of the Chief Executive Officer and Chief Financial Officer, carried out an evaluation of the effectiveness of the design and operation of the Company’s disclosure controls and procedures as defined under Rules 13a-15(e) and 15d-15(e) of the Securities Exchange Act of 1934, as amended (“Exchange Act”). Based upon, and as of the date of that evaluation, the Chief Executive Officer and Chief Financial Officer concluded that the Company’s disclosure controls and procedures were effective, in ensuring the information relating to the Company (and its consolidated subsidiaries) required to be disclosed by the Company in the reports it files or submits under the Exchange Act was recorded, processed, summarized and reported in a timely manner.
There were no changes in the Company’s internal control over financial reporting (as defined in Exchange Act Rule 13a-15(f)) during the period that have materially affected, or are reasonably likely to materially affect, our internal controls over financial reporting.
PART II —
Item 1: Legal Proceedings
In accordance with applicable accounting principles, the Company establishes an accrued liability for litigation and threatened litigation actions and proceedings when those actions present loss contingencies, which are both probable and estimable. In actions for which a loss is reasonably possible in future periods, the Company determines whether it can estimate a loss or range of possible loss. To determine whether a possible loss is estimable, the Company reviews and evaluates its material litigation on an ongoing basis, in conjunction with any outside counsel handling the matter, in light of potentially relevant factual and legal developments. This review may include information learned through the discovery process, rulings on substantive or dispositive motions, and settlement discussions.
Wintrust Mortgage Fair Lending Matter
On May 25, 2022, a Wintrust Mortgage customer filed a putative class action and asserted individual claims against Wintrust Mortgage and Wintrust Financial Corporation in the District Court for the Northern District of Illinois. Plaintiff alleged that Wintrust Mortgage discriminated against black/African American borrowers and brings class claims under the Equal Credit Opportunity Act, Sections 1981 and 1982 under Chapter 42 of the United States Code; and the Fair Housing Act of 1968. Plaintiff also asserted individual claims under theories of promissory estoppel, fraudulent inducement, and breach of contract. On September 23, 2022, Wintrust filed a motion to dismiss the entire suit and the court granted that motion to dismiss on September 27, 2023 and gave Plaintiff until October 20, 2023 to file an amended complaint. Plaintiff timely filed an amended complaint. Wintrust moved to dismiss the amended complaint on November 21, 2023 and on February 5, 2026, the court granted Wintrust’s motion with prejudice. Plaintiff filed an appeal of the second dismissal with the United States Court of Appeals for the Seventh Circuit. Briefing of the appeal is expected to conclude by the end of the third quarter of 2026.
Other Matters
In addition, the Company and its subsidiaries, from time to time, are subject to pending and threatened legal action and proceedings arising in the ordinary course of business.
Based on information currently available and upon consultation with counsel, management believes that the eventual outcome of any pending or threatened legal actions and proceedings described above, including our ordinary course litigation, will not have a material adverse effect on the operations or financial condition of the Company. However, it is possible that the ultimate resolution of these matters, if unfavorable, may be material to the results of operations or financial condition for a particular period.
Item 1A: Risk Factors
There have been no material changes from the risk factors set forth under Part I, Item 1A “Risk Factors” in the 2025 Form 10-K.
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Item 2: Unregistered Sales of Equity Securities, Use of Proceeds and Issuer Purchases of Equity Securities
No purchases of the Company’s common shares were made by or on behalf of the Company or any “affiliated purchaser” as defined in Rule 10b-18(a)(3) under the Exchange Act, as amended, during the three months ended March 31, 2026.
Item 5: Other Information
Securities Trading Plans of Directors and Officers
During the three months ended March 31, 2026 , none of our directors or officers adopted or terminated a Rule 10b5-1 trading plan or adopted or terminated a non-Rule 10b5-1 trading arrangement (as each term is defined in Item 408(a) of Regulation S-K under the Exchange Act).
Item 6: Exhibits:
(a) Exhibits
31.1
Certification of Chief Executive Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
31.2
Certification of Chief Financial Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
32.1
Certification of Chief Executive Officer and Chief Financial Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
101.INS The XBRL Instance Document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document (1)
101.SCH XBRL Taxonomy Extension Schema Document
101.CAL XBRL Taxonomy Extension Calculation Linkbase Document
101.LAB XBRL Taxonomy Extension Label Linkbase Document
101.PRE XBRL Taxonomy Extension Presentation Linkbase Document
101.DEF XBRL Taxonomy Extension Definition Linkbase Document
104 Cover Page Interactive Data File (formatted as Inline XBRL and contained in Exhibit 101)
(1) Includes the following financial information included in the Company’s Quarterly Report on Form 10-Q for the quarter ended March 31, 2026, formatted in iXBRL (Inline eXtensible Business Reporting Language): (i) the Consolidated Statements of Condition, (ii) the Consolidated Statements of Income, (iii) the Consolidated Statements of Comprehensive Income, (iv) the Consolidated Statements of Changes in Shareholders’ Equity, (v) the Consolidated Statements of Cash Flows, and (vi) Notes to Consolidated Financial Statements
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SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
WINTRUST FINANCIAL CORPORATION
(Registrant)
Date: May 6, 2026 /s/ DAVID L. STOEHR
David L. Stoehr
Executive Vice President and
Chief Financial Officer
(Principal Financial Officer and duly authorized officer)
Date: May 6, 2026 /s/ JEFFREY D. HAHNFELD
Jeffrey D. Hahnfeld
Executive Vice President, Controller and
Chief Accounting Officer
(Principal Accounting Officer and duly authorized officer)
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