Wintrust Financial Q4 2025 Wintrust Financial Corp Earnings Call | AllMind AI Earnings | AllMind AI
Q4 2025 Wintrust Financial Corp Earnings Call
Results will be made by Tim crane president and chief executive officer.
David deister, Vice chairman and Chief Operating Officer and Richard Murphy, Vice, chairman and chief lending officer.
As part of their reviews, the presenters may make reference to both the earnings press release and the earnings release presentation.
Following their presentations, there will be a formal question and answer session during the course of today's call. When trust management, may make statements to constitute projections, expectations beliefs or similar for looking statements,
Actual results could differ materially from the results anticipated or projected in any such for looking statements.
the companies forward looking assumptions that could cause the actual results to differ materially from the information discussed during this, call are detailed in our earnings press release and in the company's most recent form 10K and any subsequent filings with the SEC
Also, our remarks May reference certain non-gaap Financial measures.
Operator: Welcome to Wintrust Financial Corporation's Q4 and Q4 2025 Earnings Conference Call. A review of the results will be made by Tim Crane, President and Chief Executive Officer, David Dykstra, Vice Chairman and Chief Operating Officer, and Richard Murphy, Vice Chairman and Chief Lending Officer. As part of their reviews, the presenters may make reference to both the earnings press release and the earnings release presentation. Following their presentations, there will be a formal question-and-answer session. During the course of today's call, Wintrust management may make statements that constitute projections, expectations, beliefs, or similar forward-looking statements. Actual results could differ materially from the results anticipated or projected in any such forward-looking statements.
Our earnings press release and earnings release presentation, include a Reconciliation of each, non-gaap Financial measure to the nearest comparable, gaap Financial measure.
Speaker #1: David Dykstra, Vice Chairman and Chief Operating Officer, and Richard Murphy, Vice Chairman and Chief Lending Officer. As part of their reviews, the presenters may make reference to both the earnings press release and the earnings release presentation.
As a reminder, this conference call is being recorded. I will now turn the conference call over to Mr. Tim crane
Good morning. And for those of you, we haven't seen or talked to recently, Happy New Year.
Speaker #1: Following their presentations, there will be a formal question and answer session. During the course of today's call, Wintrust management may make statements that constitute projections, expectations, beliefs, or similar forward-looking statements.
Thank you for joining us for the win. Trust fourth quarter and full year, 25 earnings call.
In addition to the introductions Latif made, I'm joined by our Chief Financial Officer, Dave, star, and chief legal officer Kate. Bogie.
Speaker #1: Actual results could differ materially from the results anticipated or projected in any such forward-looking statements. The company's forward-looking assumptions that could cause the actual results to differ materially from the information discussed during this call are detailed in our earnings press release and in the company's most recent Form 10-K, and any subsequent filings with the SEC.
Operator: The company's forward-looking assumptions that could cause the actual results to differ materially from the information discussed during this call are detailed in our earnings press release and in the company's most recent Form 10-K and any subsequent filings with the SEC. Also, our remarks may reference certain non-GAAP financial measures. Our earnings press release and earnings release presentation include a reconciliation of each non-GAAP financial measure to the nearest comparable GAAP financial measure. As a reminder, this conference call is being recorded. I will now turn the conference call over to Mr. Tim Crane. Good morning. And for those of you we haven't seen or talked to recently, Happy New Year. Thank you for joining us for the Wintrust Q4 and full year 2024 earnings call. In addition to the introductions Lateef made, I'm joined by our Chief Financial Officer, Dave Starr, and Chief Legal Officer, Kate Boege.
Operator: The company's forward-looking assumptions that could cause the actual results to differ materially from the information discussed during this call are detailed in our earnings press release and in the company's most recent Form 10-K and any subsequent filings with the SEC. Also, our remarks may reference certain non-GAAP financial measures. Our earnings press release and earnings release presentation include a reconciliation of each non-GAAP financial measure to the nearest comparable GAAP financial measure. As a reminder, this conference call is being recorded. I will now turn the conference call over to Mr. Tim Crane. Good morning. And for those of you we haven't seen or talked to recently, Happy New Year. Thank you for joining us for the Wintrust Q4 and full year 2024 earnings call. In addition to the introductions Lateef made, I'm joined by our Chief Financial Officer, Dave Starr, and Chief Legal Officer, Kate Boege.
As we usually do on these calls, I'll begin the morning with a few highlights. Dave deister will will review the financial results. Rich will speak to loan activity and credit performance and I will return with some summary comments on 2025 and early thoughts on 2026.
As always following our remarks, we'll be happy to take questions.
With that win. Trust delivered solid performance in 2025.
The results. Reflect our focus on generating, strategic, and disciplined growth.
Speaker #1: Also, our remarks may reference certain non-GAAP financial measures. Our earnings press release and earnings release presentation include a reconciliation of each non-GAAP financial measure to the nearest comparable GAAP financial measure.
I'm proud to say, our efforts drove record net income for the year.
For full year 2025, we reported net income of 824 million up, 19% from 695 million in 2024.
Speaker #1: As a reminder, this conference call is being recorded. I will now turn the conference call over to Mr. Tim Crane.
Speaker #2: Good morning and for those of you we haven't seen or talked to recently, happy New Year. Thank you for joining us for the WINTRUST fourth quarter and full year 25 earnings call.
Earnings per diluted share was 1140 up from 1031 in 2024 and tangible Book, value increased by over 13 dollars to nearly $99 a share.
total assets at year, end were just over 71 billion dollars,
Speaker #2: In addition to the introductions Latif made, I'm joined by our Chief Financial Officer, Dave Starr, and Chief Legal Officer, Kate Bogie. As we usually do on these calls, I'll begin the morning with a few highlights.
Our fourth quarter was also strong. Net income was 223 million. Also a record up 3% or 7 million dollars from the prior quarter.
Operator: As we usually do on these calls, I'll begin the morning with a few highlights. Dave Dykstra will review the financial results. Rich will speak to loan activity and credit performance. And I will return with some summary comments on 2025 and early thoughts on 2026. As always, following our remarks, we'll be happy to take questions. With that, Wintrust delivered solid performance in 2025. The results reflect our focus on generating strategic and disciplined growth. I'm proud to say our efforts drove record net income for the year. For Q4 2025, we reported net income of $824 million, up 19% from $695 million in 2024. Earnings per diluted share was $11.40, up from $10.31 in 2024, and tangible book value increased by over $13 to nearly $89 a share. Total assets at year-end were just over $71 billion. Our Q4 was also strong.
Operator: As we usually do on these calls, I'll begin the morning with a few highlights. Dave Dykstra will review the financial results. Rich will speak to loan activity and credit performance. And I will return with some summary comments on 2025 and early thoughts on 2026. As always, following our remarks, we'll be happy to take questions. With that, Wintrust delivered solid performance in 2025. The results reflect our focus on generating strategic and disciplined growth. I'm proud to say our efforts drove record net income for the year. For Q4 2025, we reported net income of $824 million, up 19% from $695 million in 2024. Earnings per diluted share was $11.40, up from $10.31 in 2024, and tangible book value increased by over $13 to nearly $89 a share. Total assets at year-end were just over $71 billion. Our Q4 was also strong.
Speaker #2: Dykstra will review the financial Dave results. Rich will speak to loan activity and credit performance. And I will return with some summary comments on 2025 and early thoughts on 2026.
Solid loan and deposit growth during the quarter. And a slightly improved margin led to continued growth in net interest income.
credit quality remains solid and overall non-interest expenses were well managed
Speaker #2: As always, following our remarks, we'll be happy to take questions. With that, Wintrust delivered solid performance in 2025. The results reflect our focus on generating strategic and disciplined growth.
when I look back over the year, I want to highlight 3, things that I am particularly pleased by
First, we delivered disciplined growth at a level of most of our peers with a stable margin.
Speaker #2: I'm proud to say our efforts drove record net income for the year. For full year 2025, we reported net income of $824 million, up 19% from $695 million in 2024.
As we've discussed, we are adding new relationships consumer and commercial that we expect will be with us for years to come as we continue to build the franchise.
In fact, in 2025, our steady and consistent approach, moved us into third position, and deposit market share in the Chicago area, and we showed strong gains in both, Wisconsin and West Michigan.
Speaker #2: Earnings per diluted share was $11.40, up from $10.31 in 2024, and tangible book value increased by over $13 to nearly $89 a share. Total assets at year-end were just over $71 billion.
Second, we achieve solid operating Leverage.
On a percentage basis, net revenue was up 11.2%.
340 basis points higher than our non-interest expense.
Speaker #2: Our fourth quarter was also strong. Net income was $223 million, a record—up 3%, or $7 million, from the prior quarter. Solid loan and deposit growth during the quarter and a slightly improved margin led to continued growth in net interest income.
We did this while investing in the tools technology and people to both run a bank, our size today.
Operator: Net income was $223 million, also a record, up 3% or $7 million from the prior quarter. Solid loan and deposit growth during the quarter and a slightly improved margin led to continued growth in net interest income. Credit quality remained solid, and overall non-interest expenses were well managed. When I look back over the year, I want to highlight three things that I am particularly pleased by. First, we delivered disciplined growth at a level above most of our peers with a stable margin. As we've discussed, we are adding new relationships, consumer and commercial, that we expect will be with us for years to come as we continue to build the franchise. In fact, in 2025, our steady and consistent approach moved us into third position in deposit market share in the Chicago area, and we showed strong gains in both Wisconsin and West Michigan.
Operator: Net income was $223 million, also a record, up 3% or $7 million from the prior quarter. Solid loan and deposit growth during the quarter and a slightly improved margin led to continued growth in net interest income. Credit quality remained solid, and overall non-interest expenses were well managed. When I look back over the year, I want to highlight three things that I am particularly pleased by. First, we delivered disciplined growth at a level above most of our peers with a stable margin. As we've discussed, we are adding new relationships, consumer and commercial, that we expect will be with us for years to come as we continue to build the franchise. In fact, in 2025, our steady and consistent approach moved us into third position in deposit market share in the Chicago area, and we showed strong gains in both Wisconsin and West Michigan.
And to build the foundation for future growth.
Lastly we saw improved net promoter scores that were already Best in Class in both retail and Commercial Banking in 2025.
Speaker #2: Credit quality remained solid, and overall non-interest expenses were well managed. When I look back over the year, I want to highlight three things that I am particularly pleased by.
As our focus on exceptional, customer service continues to differentiate us from many of our peers.
Speaker #2: First, we delivered disciplined growth at a level above most of our peers with a stable margin. As we've discussed, we are adding new relationships, consumer and commercial, that we expect will be with us for years to come as we continue to build the franchise.
Before I turn this over to Dave, I want to call your attention to the charts. We include in our press release, at the end of each year, showing our 10-year performance on key metrics
What you will see here is the continued consistent performance that we stress with our teams.
I'm very proud of these results and how they translate into real value for our shareholders. Now, let me turn this over to Dave.
Speaker #2: In fact, in 2025, our steady and consistent approach moved us into third position in deposit market share in the Chicago area, and we showed strong gains in both Wisconsin and West Michigan.
Speaker #2: Second, we achieved solid operating leverage. On a percentage basis, net revenue was up 11.2%, 340 basis points higher than our non-interest expense. We did this while investing in the tools, technology, and people to both run a bank our size today and to build the foundation for future growth.
Operator: Second, we achieved solid operating leverage. On a percentage basis, net revenue was up 11.2%, 340 basis points higher than our non-interest expense. We did this while investing in the tools, technology, and people to both run a bank our size today and to build the foundation for future growth. Lastly, we saw improved net promoter scores that were already best in class in both retail and commercial banking in 2025, as our focus on exceptional customer service continues to differentiate us from many of our peers. Before I turn this over to Dave, I want to call your attention to the charts we include in our press release at the end of each year showing our 10-year performance on key metrics. What you will see here is the continued consistent performance that we stress with our teams.
Operator: Second, we achieved solid operating leverage. On a percentage basis, net revenue was up 11.2%, 340 basis points higher than our non-interest expense. We did this while investing in the tools, technology, and people to both run a bank our size today and to build the foundation for future growth. Lastly, we saw improved net promoter scores that were already best in class in both retail and commercial banking in 2025, as our focus on exceptional customer service continues to differentiate us from many of our peers. Before I turn this over to Dave, I want to call your attention to the charts we include in our press release at the end of each year showing our 10-year performance on key metrics. What you will see here is the continued consistent performance that we stress with our teams.
With both following within our stated range of mid to high single digits growth. Specifically, the deposit growth is right at 1 billion dollars. During the quarter representing a 7%, increase over the prior quarter on an annualized basis. This deposit growth helped to fund continued strong, fourth quarter loan, growth of a similar 1.0 billion dollar amount that represented 8% growth on an annualized basis, on a full year basis, loans, and deposits grew, 11% and 10% respectively.
Speaker #2: Lastly, we saw improved Net Promoter Scores that were already best in class in both retail and commercial banking in 2025, as our focus on exceptional customer service continues to differentiate us from many of our peers.
Training the income statement results. This was a very solid operating quarter for interest producing a record level of quarterly, net income.
Speaker #2: Before I turn this over to Dave, I want to call your attention to the charts we include in our press release at the end of each year showing our 10-year performance on key metrics.
Speaker #2: What you will see here is the continued consistent performance that we stress with our teams. I'm very proud of these results and how they translate into real value for our shareholders.
Speaking to the major components of the income statement, our net interest income. Also reached another high record, quarterly amount a 1.1 billion increase in the average earning assets as well as a 4 basis. Point increase in the net, interest margin drove the 16.9 million dollar, increase in net interest income over the prior quarter.
Operator: I'm very proud of these results and how they translate into real value for our shareholders. Now, let me turn this over to Dave. Great. Thanks, Tim. We finished off 2025 with another quarter of strong loan and deposit growth, with both falling within our stated range of mid to high single digits growth. Specifically, the deposit growth was right at $1 billion during the quarter, representing a 7% increase over the prior quarter on an annualized basis. This deposit growth helped to fund continued strong Q4 loan growth of a similar $1.0 billion amount that represented 8% growth on an annualized basis. On a full-year basis, loans and deposits grew 11% and 10%, respectively. Turning to the income statement results, this was a very solid operating quarter for Wintrust, producing a record level of quarterly net income.
Operator: I'm very proud of these results and how they translate into real value for our shareholders. Now, let me turn this over to Dave.
Speaker #2: Now, let me turn this over to
Then then interest margin range from 3.5 0 to 3.56 during the 4 quarters of 2025 and the 3.54. Net interest margin for the fourth quarter fell squarely in that range.
David Dykstra: Great. Thanks, Tim. We finished off 2025 with another quarter of strong loan and deposit growth, with both falling within our stated range of mid to high single digits growth. Specifically, the deposit growth was right at $1 billion during the quarter, representing a 7% increase over the prior quarter on an annualized basis. This deposit growth helped to fund continued strong Q4 loan growth of a similar $1.0 billion amount that represented 8% growth on an annualized basis. On a full-year basis, loans and deposits grew 11% and 10%, respectively. Turning to the income statement results, this was a very solid operating quarter for Wintrust, producing a record level of quarterly net income.
Speaker #3: Great.
Speaker #3: We finished off 2025 with another quarter of strong loan and deposit growth, with both falling within our stated range of mid- to high-single-digit growth.
I would note that period in loans were once again higher than the average loans for the fourth quarter. Giving us a good start on achieving higher, average earning Assets in the first quarter of 2026,
Speaker #3: Specifically, the deposit growth was right at $1.0 billion during the quarter, representing a 7% increase over the prior quarter on an annualized basis. This deposit growth helped to fund continued strong fourth quarter loan growth of a similar $1.0 billion amount.
The provision for credit losses, was relatively consistent with prior quarters remaining in the 20-30 million range. Experienced in all quarterly periods of 2025 as the overall credit environment and asset quality has remained relatively stable.
Speaker #3: That represented 8% growth on an annualized basis. On a full year basis, loans and deposits grew 11% and 10% respectively. Turning to the income statement results, this was a very solid operating quarter for WINTRUST, producing a record level of quarterly net income.
Speaker #3: Speaking to the major components of the income statement, our net interest income also reached another record high quarterly amount. A $1.1 billion increase in average earning assets, as well as a four basis point increase in the net interest margin, drove the $16.9 million increase in net interest income over the prior quarter.
Operator: Speaking to the major components of the income statement, our net interest income also reached another high record quarterly amount. A $1.1 billion increase in the average earning assets, as well as a four basis point increase in the net interest margin, drove the $16.9 million increase in net interest income over the prior quarter. The net interest margin ranged from 3.50 to 3.56 during the four quarters of 2025, and the 3.54 net interest margin for the fourth quarter fell squarely in that range. I would note that period-end loans were once again higher than the average loans for the fourth quarter, giving us a good start on achieving higher average earning assets in the first quarter of 2026.
Operator: Speaking to the major components of the income statement, our net interest income also reached another high record quarterly amount. A $1.1 billion increase in the average earning assets, as well as a four basis point increase in the net interest margin, drove the $16.9 million increase in net interest income over the prior quarter. The net interest margin ranged from 3.50 to 3.56 during the four quarters of 2025, and the 3.54 net interest margin for the fourth quarter fell squarely in that range. I would note that period-end loans were once again higher than the average loans for the fourth quarter, giving us a good start on achieving higher average earning assets in the first quarter of 2026.
Regarding other 9 interest income and other non-interest expenses, non-interest income totaled 130.4 million in the fourth quarter, similar to the 130.8 million record record recorded in the prior quarter. The very slight decline was impacted by lower security gains but overall other than the continued softness in the mortgage Revenue, it was a solid outcome for non-interest income for the fourth quarter.
Speaker #3: The net interest margin ranged from 3.50% to 3.56% during the four quarters of 2025, and the 3.54% net interest margin for the fourth quarter fell squarely in that range.
That's the 9 interest expense categories. Non-interest expenses totaled 384.5 million in the fourth quarter, which represented a slight increase from the 380 million recorded in the prior quarter increases in employees, health insurance claims Oreo, expenses travel and entertainment, and various other small expense increases were offset, some buy seasonally lower marketing costs.
Speaker #3: I would note that period-end loans were once again higher than the average loans for the fourth quarter, giving us a good start on achieving higher average earning assets in the first quarter of 2026.
Overall expenses are well controlled and within the expected range we discussed on our last call.
Speaker #3: The provision for credit losses was relatively consistent with prior quarters, remaining in the $20 to $30 million range experienced in all quarterly periods of 2025, as the overall credit environment and asset quality has remained relatively stable.
Operator: The provision for credit losses was relatively consistent with prior quarters, remaining in the $20 to $30 million range experienced in all quarterly periods of 2025, as the overall credit environment and asset quality has remained relatively stable. Regarding other non-interest income and other non-interest expenses, non-interest income totaled $130.4 million in the fourth quarter, similar to the $130.8 million recorded in the prior quarter. A very slight decline was impacted by lower security gains, but overall, other than the continued softness in the mortgage revenue, it was a solid outcome for non-interest income for the fourth quarter. As to non-interest expense categories, non-interest expenses totaled $384.5 million in the fourth quarter, which represented a slight increase from the $380 million recorded in the prior quarter.
Operator: The provision for credit losses was relatively consistent with prior quarters, remaining in the $20 to $30 million range experienced in all quarterly periods of 2025, as the overall credit environment and asset quality has remained relatively stable. Regarding other non-interest income and other non-interest expenses, non-interest income totaled $130.4 million in the fourth quarter, similar to the $130.8 million recorded in the prior quarter. A very slight decline was impacted by lower security gains, but overall, other than the continued softness in the mortgage revenue, it was a solid outcome for non-interest income for the fourth quarter. As to non-interest expense categories, non-interest expenses totaled $384.5 million in the fourth quarter, which represented a slight increase from the $380 million recorded in the prior quarter.
additionally, both the quarterly, net overhead ratio and the efficiency ratio remained relatively stable during the quarter from the prior quarter
in summary, I'll reiterate what I said on our last call with this being a another very solid quarter, the company accomplished, good loan and deposit growth a stable, net interest margin with a steady Outlook
Speaker #3: Regarding other non-interest income and other non-interest expenses, non-interest income totaled $130.4 million in the fourth quarter, similar to the $130.8 million recorded in the prior quarter.
A record level of net interest income and a continued low, low-level of non-performing assets.
Speaker #3: The very slight decline was impacted by lower security gains, but overall, other than the continued softness in the mortgage revenue, it was a solid outcome for non-interest income for the fourth quarter.
Our team delivered, net income. That was a record for any full fiscal year in the company system. And we have a positive outlook for continued, growth in assets, revenues and earning.
So, with that, I'll conclude my comments and turn it over to Rich, Murphy to discuss credit.
Speaker #3: As to non-interest expense categories, non-interest expenses totaled $384.5 million in the fourth quarter, which represented a slight increase from the $380 million recorded in the prior quarter.
Speaker #3: Increases in employees' health insurance claims, OREO expenses, travel and entertainment, and various other small expense increases were offset somewhat by seasonally lower marketing costs.
Operator: Increases in employees' health insurance claims, OREO expenses, travel and entertainment, and various other small expense increases were offset somewhat by seasonally lower marketing costs. Overall, expenses were well controlled and within the expected range we discussed on our last call. Additionally, both the quarterly net overhead ratio and the efficiency ratio remained relatively stable during the quarter from the prior quarter. In summary, I'll reiterate what I said on our last call, with this being another very solid quarter. The company accomplished good loan and deposit growth, a stable net interest margin with a steady outlook, a record level of net interest income, and a continued low level of non-performing assets. Our team delivered net income that was a record for any full fiscal year in the company's history, and we have a positive outlook for continued growth in assets, revenues, and earnings.
Operator: Increases in employees' health insurance claims, OREO expenses, travel and entertainment, and various other small expense increases were offset somewhat by seasonally lower marketing costs. Overall, expenses were well controlled and within the expected range we discussed on our last call. Additionally, both the quarterly net overhead ratio and the efficiency ratio remained relatively stable during the quarter from the prior quarter. In summary, I'll reiterate what I said on our last call, with this being another very solid quarter. The company accomplished good loan and deposit growth, a stable net interest margin with a steady outlook, a record level of net interest income, and a continued low level of non-performing assets. Our team delivered net income that was a record for any full fiscal year in the company's history, and we have a positive outlook for continued growth in assets, revenues, and earnings.
Thanks, Dave, as Tim and Dave, both noted credit performance continue to be very solid in the fourth quarter, as detailed on slide 7 loan, growth of approximately 1 billion came from a number of different categories. Commercial real estate, loans grew by 322 million. Our mortgage Warehouse team grew their outstanding by 310 million the win. Trust life Finance, team had another strong quarter and grew by 265 million and our Leasing and Residential Mortgage groups. Also had a very solid quarter.
Speaker #3: Overall, expenses were well controlled and within the expected range we discussed on our last call. Additionally, both the quarterly net overhead ratio and the efficiency ratio remained relatively stable during the quarter from the prior quarter.
We Believe loan growth for the first quarter while typically, our slowest quarter will continue to be solid for a number of reasons.
Speaker #3: In summary, I'll reiterate what I said on our last call. With this being another very solid quarter, the company accomplished good loan and deposit growth, a stable net interest margin with a steady outlook, a record level of net interest income, and a continued low level of non-performing assets.
Our core cni and CRA pipelines remain consistent and we continue to benefit from our unique Market positioning in our core markets of Chicago land, Wisconsin, West Michigan, and Northwest Indiana.
In addition, we continue to have a very good momentum in a number of our lending verticals, including mortgage Warehouse, Leasing and Premium Finance.
Speaker #3: Our team delivered net income that was a record for any full fiscal year in the company's history, and we have a positive outlook for continued growth in assets, revenues, and earnings.
From a credit quality perspective. As detailed on slide 15, we continue to see strong credit performance across the portfolio.
This can be seen in a number of metrics.
Speaker #3: So with that, I'll conclude my comments and turn it over to Rich Murphy to discuss.
Speaker #3: So with that, I'll conclude my comments and turn it over to Rich Murphy to discuss credit. Thanks.
Operator: So with that, I'll conclude my comments and turn it over to Rich Murphy to discuss credit. Thanks, Dave. As Tim and Dave both noted, credit performance continued to be very solid in the fourth quarter. As detailed on slide seven, loan growth of approximately $1 billion came from a number of different categories. Commercial real estate loans grew by $322 million. Our mortgage warehouse team grew their outstandings by $310 million. The Wintrust Life Finance team had another strong quarter and grew by $265 million. And our leasing and residential mortgage groups also had a very solid quarter. We believe loan growth for the first quarter, while typically our slowest quarter, will continue to be solid for a number of reasons.
Operator: So with that, I'll conclude my comments and turn it over to Rich Murphy to discuss credit. Thanks, Dave. As Tim and Dave both noted, credit performance continued to be very solid in the fourth quarter. As detailed on slide seven, loan growth of approximately $1 billion came from a number of different categories. Commercial real estate loans grew by $322 million. Our mortgage warehouse team grew their outstandings by $310 million. The Wintrust Life Finance team had another strong quarter and grew by $265 million. And our leasing and residential mortgage groups also had a very solid quarter. We believe loan growth for the first quarter, while typically our slowest quarter, will continue to be solid for a number of reasons.
Speaker #4: Dave. As Tim and Dave both noted, credit performance continued to be very solid in the fourth quarter. As detailed on slide seven, loan growth of approximately $1 billion came from a number of different categories.
Non-performing loans, increase slightly from 162.6 million or 31 basis points to 185.8 or 35 basis points, but remained at a very manageable level. And in line with levels, we had seen in the first half of the year,
Charge drops for the quarter were 17 basis points down from 19 basis points in the prior quarter.
Speaker #4: Commercial real estate loans grew by $322 million, our mortgage warehouse team grew their outstandings by $310 million, the WINTRUST Life Finance team had another strong quarter and grew by $265 million, and our leasing and residential mortgage groups also had a very solid quarter.
We continue to believe the level of npls and charge offs in the fourth quarter, reflect a stable, credit environment as evidenced by the chart of historical non-performing asset levels on slide, 16 and consistent in the consistent level. In our special mention and substandard Loans on slide 15.
Speaker #4: We believe loan growth for the first quarter, while typically our slowest quarter, will continue to be solid for a number of reasons. Our core C&I and CRE pipelines remain consistent, and we continue to benefit from our unique market positioning and our core markets of Chicagoland, Wisconsin, West Michigan, and Northwest Indiana.
And charging them down where appropriate our goal. As always is to say ahead of any credit challenges.
Operator: Our core C&I and CRE pipelines remain consistent, and we continue to benefit from our unique market positioning in our core markets of Chicagoland, Wisconsin, West Michigan, and Northwest Indiana. In addition, we continue to have very good momentum in a number of our lending verticals, including mortgage warehouse, leasing, and premium finance. From a credit quality perspective, as detailed on slide 15, we continue to see strong credit performance across the portfolio. This can be seen in a number of metrics. Non-performing loans increased slightly from $162.6 million, or 31 basis points, to $185.8, or 35 basis points, but remained at a very manageable level and in line with levels we had seen in the first half of the year. Charge-offs for the quarter were 17 basis points, down from 19 basis points in the prior quarter.
Operator: Our core C&I and CRE pipelines remain consistent, and we continue to benefit from our unique market positioning in our core markets of Chicagoland, Wisconsin, West Michigan, and Northwest Indiana. In addition, we continue to have very good momentum in a number of our lending verticals, including mortgage warehouse, leasing, and premium finance. From a credit quality perspective, as detailed on slide 15, we continue to see strong credit performance across the portfolio. This can be seen in a number of metrics. Non-performing loans increased slightly from $162.6 million, or 31 basis points, to $185.8, or 35 basis points, but remained at a very manageable level and in line with levels we had seen in the first half of the year. Charge-offs for the quarter were 17 basis points, down from 19 basis points in the prior quarter.
As noted in our last few earnings calls, we continue to be highly focused on our exposure to commercial real estate loans, which comprise roughly 1 quarter of our total portfolio.
Speaker #4: In addition, we continue to have very good momentum in a number of our lending verticals, including mortgage warehouse, leasing, and premium finance. From a credit quality perspective, as detailed on slide 15, we continue to see strong credit performance across the portfolio.
As detailed on slide, 19, we continue to see signs of stabilization during the fourth quarter as cre npls remained at a very low level. Decreasing from 0.21% to 0.18%
to see charge offs, continue to remain at historically low levels.
Speaker #4: This can be seen in a number of metrics. Non-performing loans increased slightly from $162.6 million, or 31 basis points, to $185.8 million, or 35 basis points, but remained at a very manageable level and in line with levels we had seen in the first half of the year.
On slide 20, we continue to provide enhanced detail on our CRA office exposure. Currently, this portfolio remains steady at 1.7 billion or 12.1% of our total CRA portfolio and only 3.2% of our total loan portfolio.
Speaker #4: Charge-offs for the quarter were 17 basis points, down from 19 basis points in the prior quarter. We continue to believe the level of NPLs and charge-offs in the fourth quarter reflect a stable credit environment, as evidenced by the chart of historical non-performing asset levels on slide 16.
Operator: We continue to believe the level of NPLs and charge-offs in the fourth quarter reflect a stable credit environment, as evidenced by the chart of historical non-performing asset levels on slide 16, and the consistent level in our special mention and substandard loans on slide 15. This quarter is another example of our commitment to identify problems early and charging them down where appropriate. Our goal, as always, is to stay ahead of any credit challenges. As noted in our last few earnings calls, we continue to be highly focused on our exposure to commercial real estate loans, which comprise roughly one quarter of our total portfolio. As detailed on slide 19, we continue to see signs of stabilization during the fourth quarter, as CRE NPLs remained at a very low level, decreasing from 0.21% to 0.18%. CRE charge-offs continue to remain at historically low levels.
Operator: We continue to believe the level of NPLs and charge-offs in the fourth quarter reflect a stable credit environment, as evidenced by the chart of historical non-performing asset levels on slide 16, and the consistent level in our special mention and substandard loans on slide 15. This quarter is another example of our commitment to identify problems early and charging them down where appropriate. Our goal, as always, is to stay ahead of any credit challenges. As noted in our last few earnings calls, we continue to be highly focused on our exposure to commercial real estate loans, which comprise roughly one quarter of our total portfolio. As detailed on slide 19, we continue to see signs of stabilization during the fourth quarter, as CRE NPLs remained at a very low level, decreasing from 0.21% to 0.18%. CRE charge-offs continue to remain at historically low levels.
We monitor this portfolio very closely and we will continue to perform our Deep dive analysis, on a quarterly basis. The most recent deep dive analysis showed very consistent results when compared to Prior quarters.
Speaker #4: And consistent in the consistent level in our special mention and substandard loans on slide 15. This quarter is another example of our commitment to identify problems early and charging them down where appropriate.
Finally as we have discussed on previous calls our teams, stay in close contact with our customers, and those conversations continue to reflect a measured optimism.
Speaker #4: Our goal, as always, is to stay ahead of any credit challenges. As noted in our last few earnings calls, we continue to be highly focused on our exposure to commercial real estate loans, which comprise roughly one quarter of our total portfolio.
With solid visibility into our loan pipelines and continue discipline around our portfolio. We would expect loan growth in 2026 to be within our guidance and portfolio performance in line with our historical experience.
That includes my comments on credit and I'll turn it back to Tim.
Great, thank you Rich again really good Financial results in 20125.
Speaker #4: As detailed on slide 19, we continue to see signs of stabilization during the fourth quarter, as CRE NPLs remained at a very low level, decreasing from 0.21% to 0.18%.
Our primary objective for 2026 is to continue to deliver solid and consistent financial performance.
Speaker #4: And CRE charge-offs continue to remain at historically low levels. On slide 20, we continue to provide enhanced detail on our CRE office exposure. Currently, this portfolio remains steady at $1.7 billion, or 12.1% of our total CRE portfolio, and only 3.2% of our total loan portfolio.
We expect our teams will continue to provide a differentiated level of service to drive organic growth.
Operator: On slide 20, we continue to provide enhanced detail on our CRE office exposure. Currently, this portfolio remains steady at $1.7 billion, or 12.1% of our total CRE portfolio, and only 3.2% of our total loan portfolio. We monitor this portfolio very closely, and we will continue to perform our deep dive analysis on a quarterly basis. The most recent deep dive analysis showed very consistent results when compared to prior quarters. Finally, as we have discussed on previous calls, our team stays in close contact with our customers, and those conversations continue to reflect a measured optimism. With solid visibility into our loan pipelines and continued discipline around our portfolio, we would expect loan growth in 2026 to be within our guidance and portfolio performance in line with our historical experience. That concludes my comments on credit, and I'll turn it back to Tim. Great. Thank you, Rich.
Operator: On slide 20, we continue to provide enhanced detail on our CRE office exposure. Currently, this portfolio remains steady at $1.7 billion, or 12.1% of our total CRE portfolio, and only 3.2% of our total loan portfolio. We monitor this portfolio very closely, and we will continue to perform our deep dive analysis on a quarterly basis. The most recent deep dive analysis showed very consistent results when compared to prior quarters. Finally, as we have discussed on previous calls, our team stays in close contact with our customers, and those conversations continue to reflect a measured optimism. With solid visibility into our loan pipelines and continued discipline around our portfolio, we would expect loan growth in 2026 to be within our guidance and portfolio performance in line with our historical experience. That concludes my comments on credit, and I'll turn it back to Tim. Great. Thank you, Rich.
At the same time, we will continue to invest in the tools technology and people needed to support that growth.
Our targets for 2026 are straightforward.
We expect mid to high single digit loan growth.
Funded by a similar level of deposit growth as we continue to expand, share.
Given the current interest rate environment, and even with a few rate changes in either direction, we expect the margin to remain relatively stable around 3.5%.
We plan to deliver positive operating leverage while continuing to make the important Investments that position us for the future.
We expect to see improved non-interest income in our wealth management and service-based fee, income businesses.
And are hopeful for the mortgage Market to pick up.
Operator: Again, really good financial results in 2025. Our primary objective for 2026 is to continue to deliver solid and consistent financial performance. We expect our teams will continue to provide a differentiated level of service to drive organic growth. At the same time, we will continue to invest in the tools, technology, and people needed to support that growth. Our targets for 2026 are straightforward. We expect mid to high single-digit loan growth funded by a similar level of deposit growth as we continue to expand share. Given the current interest rate environment, and even with a few rate changes in either direction, we expect the margin to remain relatively stable around 3.5%. We plan to deliver positive operating leverage while continuing to make the important investments that position us for the future.
Operator: Again, really good financial results in 2025. Our primary objective for 2026 is to continue to deliver solid and consistent financial performance. We expect our teams will continue to provide a differentiated level of service to drive organic growth. At the same time, we will continue to invest in the tools, technology, and people needed to support that growth. Our targets for 2026 are straightforward. We expect mid to high single-digit loan growth funded by a similar level of deposit growth as we continue to expand share. Given the current interest rate environment, and even with a few rate changes in either direction, we expect the margin to remain relatively stable around 3.5%. We plan to deliver positive operating leverage while continuing to make the important investments that position us for the future.
We remain focused on our Midwestern footprint and will continue to make the most of opportunities across the United States for our specialty businesses, where our expertise and unique Solutions. Give us a competitive advantage.
Our pipelines remain solid. And although, we have strong momentum going into the year, we are mindful of the typical seasonality that can make our quarterly growth uneven, particularly in the first half of the year.
With this in mind, I feel good about our business heading into 2026.
Let me end by saying that we could not generate the results that we do without the dedication and commitment of our Wind Trust team.
We have the best people in the business and I want to thank each of our colleagues. For all that. You do to ensure we deliver results for our clients and our shareholders while we work to drive sustainable growth in the communities, we serve
Um, thank you for joining us this morning and let me turn it back to Latif for your questions.
Operator: We expect to see improved non-interest income in our wealth management and service-based fee income businesses and are hopeful for the mortgage market to pick up. We remain focused on our Midwestern footprint and will continue to make the most of opportunities across the United States for our specialty businesses where our expertise and unique solutions give us a competitive advantage. Our pipelines remain solid, and although we have strong momentum going into the year, we are mindful of the typical seasonality that can make our quarterly growth uneven, particularly in the first half of the year. With this in mind, I feel good about our business heading into 2026. Let me end by saying that we could not generate the results that we do without the dedication and commitment of our Wintrust team.
Operator: We expect to see improved non-interest income in our wealth management and service-based fee income businesses and are hopeful for the mortgage market to pick up. We remain focused on our Midwestern footprint and will continue to make the most of opportunities across the United States for our specialty businesses where our expertise and unique solutions give us a competitive advantage. Our pipelines remain solid, and although we have strong momentum going into the year, we are mindful of the typical seasonality that can make our quarterly growth uneven, particularly in the first half of the year. With this in mind, I feel good about our business heading into 2026. Let me end by saying that we could not generate the results that we do without the dedication and commitment of our Wintrust team.
Thank you as a reminder, to ask a question. You will need to press star 1 1, 1 on your telephone, to remove yourself from the key. You may press star 1 1 1 again.
Please stand by while we compile the Q&A roster.
First question comes from the line of John Ostrom of RBC Capital markets, please go ahead. John.
Hey, thanks. Good morning.
good morning John um, can we usually we start with a loan growth, but can can you talk a little bit more about that Tim, um, kind of the
Operator: We have the best people in the business, and I want to thank each of our colleagues for all that you do to ensure we deliver results for our clients and our shareholders while we work to drive sustainable growth in the communities we serve. Thank you for joining us this morning, and let me turn it back to Latif for your questions. Thank you. As a reminder, to ask a question, you will need to press star 11 on your telephone. To remove yourself from the queue, you may press star 11 again. Please stand by while we compile the Q&A roster. Our first question comes from the line of John Arfstrom of RBC Capital Markets. Please go ahead, John. Hey, thanks. Good morning. Good morning, John.
Operator: We have the best people in the business, and I want to thank each of our colleagues for all that you do to ensure we deliver results for our clients and our shareholders while we work to drive sustainable growth in the communities we serve. Thank you for joining us this morning, and let me turn it back to Latif for your questions.
What takes you to the mid single digit? What takes you to the high single digit sounds like you're off to a stronger start, even though you're flagging, you know, some, you know, how the first quarter and second quarter can, sometimes be a little bit softer but it it, it feels like you're entering the year um, with pretty good momentum. Can can you just unpack that a little bit for us?
Sure, a little bit John and Rich can help me here. Um, but
Operator: Thank you. As a reminder, to ask a question, you will need to press star 11 on your telephone. To remove yourself from the queue, you may press star 11 again. Please stand by while we compile the Q&A roster. Our first question comes from the line of John Arfstrom of RBC Capital Markets. Please go ahead, John. Hey, thanks. Good morning. Good morning, John.
For us. But you know the first half of the year, you know, tends to be in line with with our targets. So um, again, I think we feel pretty good and Rich.
Yeah. No, I think you answered that very well. Um,
Operator: Usually, we start with loan growth, but can you talk a little bit more about that, Tim, kind of what takes you to the mid-single digit, what takes you to the high single digit? Sounds like you're off to a stronger start, even though you're flagging how Q1 and Q2 can sometimes be a little bit softer, but it feels like you're entering the year with pretty good momentum. Can you just unpack that a little bit for us? Sure, a little bit. John and Rich can help me here. But again, we're cautiously optimistic about what we're hearing in the local economies where we operate. Employment levels, unemployment levels are low, and it was a pretty solid quarter for us, broad-based in terms of loan growth. So I think we feel pretty good.
Operator: Usually, we start with loan growth, but can you talk a little bit more about that, Tim, kind of what takes you to the mid-single digit, what takes you to the high single digit? Sounds like you're off to a stronger start, even though you're flagging how Q1 and Q2 can sometimes be a little bit softer, but it feels like you're entering the year with pretty good momentum. Can you just unpack that a little bit for us? Sure, a little bit. John and Rich can help me here. But again, we're cautiously optimistic about what we're hearing in the local economies where we operate. Employment levels, unemployment levels are low, and it was a pretty solid quarter for us, broad-based in terms of loan growth. So I think we feel pretty good.
Operator: As you mentioned, the first quarter can be a little bit softer than the second quarter for us, but the first half of the year tends to be in line with our targets. So again, I think we feel pretty good. And Rich? Yeah, no, I think you answered that very well. First quarter last year was $653, so down from we were about 6%. And then we picked it up in the second quarter, as you, John, you know that story, how our first insurance business really kind of picks up the pace there in the second quarter. So we had a really good second half, but where that comes from is, as I mentioned, some really good market positioning right now in our C&I and CRE space that we feel pretty good about.
Operator: As you mentioned, the first quarter can be a little bit softer than the second quarter for us, but the first half of the year tends to be in line with our targets. So again, I think we feel pretty good. And Rich? Yeah, no, I think you answered that very well. First quarter last year was $653, so down from we were about 6%. And then we picked it up in the second quarter, as you, John, you know that story, how our first insurance business really kind of picks up the pace there in the second quarter. So we had a really good second half, but where that comes from is, as I mentioned, some really good market positioning right now in our C&I and CRE space that we feel pretty good about.
First quarter last year was 653. And so down from we're about 6%. Um and then we picked it up in the second quarter as you you know, John you know that story how our first Insurance business really kind of picks up um the pace there and the second quarter. So um, we had a really good second half, but, you know, there's but where that comes from is as I mentioned, some really good Market, positioning right now in our cni and CRA space. Um, that we feel pretty good about. Um, when we talked to customers, as I mentioned, you know, they feel pretty good about where the economy stands right now. And, you know, I think our, you know, there's enough stability in the, you know, General picture where they're willing to invest, you know, and then you look at the different verticals that we saw really good success with in the fourth quarter um in particular where mortgage Warehouse lines. And if we get some some pickup here on the mortgage side of the business, I think you'll continue to see that in the first half of the year, um, you know, Leasing
Resi, mortgage also had a good quarter. So, you know, there's a lot of different, uh, things that feel pretty good right now. But again, you know that the, uh, the effect of, uh, the first quarter phenomenon in the, uh, Premium Finance business is something that, you know, we will, we would expect to see um usually reversing then back in the second quarter.
Yep. Okay good. Um, and then uh, maybe Tim or Dave, you you talked about the positive operating leverage. I mean those are a big lift, uh, and 2025 what are some of the puts and takes on expenses and overall thoughts on the expense plans for 2026. Thanks,
Operator: When we talk to customers, as I mentioned, they feel pretty good about where the economy stands right now. I think there's enough stability in the general picture where they're willing to invest. Then you look at the different verticals that we saw really good success with in the fourth quarter, in particular, mortgage warehouse lines. If we get some pickup here on the mortgage side of the business, I think you'll continue to see that in the first half of the year. Leasing, Resi Mortgage also had a good quarter. So there's a lot of different things that feel pretty good right now. But again, the effect of the first quarter phenomenon in the premium finance business is something that we would expect to see, usually reversing then back in the second quarter. Okay. Good.
Operator: When we talk to customers, as I mentioned, they feel pretty good about where the economy stands right now. I think there's enough stability in the general picture where they're willing to invest. Then you look at the different verticals that we saw really good success with in the fourth quarter, in particular, mortgage warehouse lines. If we get some pickup here on the mortgage side of the business, I think you'll continue to see that in the first half of the year. Leasing, Resi Mortgage also had a good quarter. So there's a lot of different things that feel pretty good right now. But again, the effect of the first quarter phenomenon in the premium finance business is something that we would expect to see, usually reversing then back in the second quarter. Okay. Good.
Well I I think it's probably sort of more of the same story that we've had before if we have that mid to high single-digit um Revenue growth so I'm so sorry to say 7 and a half. 8% is sort of the middle middle of the target. We would expect and that's off of the fourth quarter run rate. We would expect expenses off of the fourth quarter run, right? Probably to be in that 4 to 5% range. And so we we we expect to get positive operating leverage again and you know, if if you had Revenue that was at the lower end of that range, then we would, you know, we would tighten up on expenses so the the the
Operator: And then maybe Tim or Dave, you talked about the positive operating leverage. I mean, there was a big lift in 2025. What are some of the puts and takes on expenses and overall thoughts on the expense plans for 2026? Thanks. Well, I think it's probably sort of more of the same story that we've had before. If we had that mid- to high single-digit revenue growth, so sort of say 7.5%, 8% is sort of the middle of the target, and that's off of the fourth quarter run rate, we would expect expenses off of the fourth quarter run rate probably to be in that 4% to 5% range. And so we expect to get positive operating leverage again. And if you had revenue that was at the lower end of that range, then we would tighten up on expenses.
Operator: And then maybe Tim or Dave, you talked about the positive operating leverage. I mean, there was a big lift in 2025. What are some of the puts and takes on expenses and overall thoughts on the expense plans for 2026? Thanks. Well, I think it's probably sort of more of the same story that we've had before. If we had that mid- to high single-digit revenue growth, so sort of say 7.5%, 8% is sort of the middle of the target, and that's off of the fourth quarter run rate, we would expect expenses off of the fourth quarter run rate probably to be in that 4% to 5% range. And so we expect to get positive operating leverage again. And if you had revenue that was at the lower end of that range, then we would tighten up on expenses.
The goal is to get a positive operating expense invest in the business of support stronger, uh, growth as we've always done, um, and grow the franchise. So, um, the as you know, second and third quarter is a little bit higher for, uh, uh, marketing and sponsorships, uh, for us and the first, and the fourth quarters are lower, but
you know, it health insurance claims um, attend
Or attending to be up a little bit in this market, um, and so they may rise a little bit, but all of that is sort of baked into this say 4 to 5%. Um, expected growth based on a fourth quarter run rate. And again, I get you operating leverage, if if, if loan growth was lower for some reason, which we which we don't don't expect right now we we we see a lot of good opportunities and we would, we would we would probably trim back a little bit on expenses, but we're big Believers in investing in the business to grow the franchise.
Operator: So the goal is to get positive operating expense, invest in the business to support stronger growth, as we've always done, and grow the franchise. So as you know, Q2 and Q3 are a little bit higher for marketing and sponsorships for us, and Q1 and Q4 are lower. But health insurance claims are tending to be up a little bit in this market, and so they may rise a little bit, but all of that is sort of baked into this, say, 4% to 5% expected growth based on a Q4 run rate. And again, that gets you operating leverage. If loan growth was lower for some reason, which we don't expect right now, we see a lot of good opportunities, and we would probably trim back a little bit on expenses.
Operator: So the goal is to get positive operating expense, invest in the business to support stronger growth, as we've always done, and grow the franchise. So as you know, Q2 and Q3 are a little bit higher for marketing and sponsorships for us, and Q1 and Q4 are lower. But health insurance claims are tending to be up a little bit in this market, and so they may rise a little bit, but all of that is sort of baked into this, say, 4% to 5% expected growth based on a Q4 run rate. And again, that gets you operating leverage. If loan growth was lower for some reason, which we don't expect right now, we see a lot of good opportunities, and we would probably trim back a little bit on expenses.
Yeah. John the the 2 kind of wild cards 1, I think everybody is seeing benefit expense, go up fairly substantially. The other is if the mortgage business picks up, we'll get, we'll get more expense but that would be good news for us because we would get obviously more Revenue as well.
um,
Otherwise, I think they've got got the answer there.
Yep. Okay, thanks a lot. I appreciate it.
Thank you.
Our next question.
Comes from the line of Nathan race, a piper Sandler, please go ahead and Nathan.
Hey guys, good morning. Thanks for taking the questions.
You bet, hoping was hoping to unpack, just the decline deposit cost in the quarter. Um, some of the drivers there, so, maybe Tim, could you just speak to, you know, how much of the opportunity to reduce deposit costs in the quarter was just a function of more rational competition in Chicago, these days or maybe just some complexion changes in terms of the win. Trust deposit composition over the years that has allowed you guys to, you know, put up some pretty
Operator: But we're big believers in investing in the business to grow the franchise. Yeah, John, the two kind of wild cards. One, I think everybody is seeing benefit expense go up fairly substantially. The other is if the mortgage business picks up, we'll get more expense, but that would be good news for us because we would get, obviously, more revenue as well. Otherwise, I think Dave got the answer there. Yep. Okay. Thanks a lot. I appreciate it. Thank you. Our next question comes from the line of Nathan Race of Piper Sandler. Please go ahead, Nathan. Hey, guys. Good morning. Thanks for taking the questions. This is Yvette. I was hoping to unpack just the decline in deposit costs in the quarter, some of the drivers there.
Operator: But we're big believers in investing in the business to grow the franchise. Yeah, John, the two kind of wild cards. One, I think everybody is seeing benefit expense go up fairly substantially. The other is if the mortgage business picks up, we'll get more expense, but that would be good news for us because we would get, obviously, more revenue as well. Otherwise, I think Dave got the answer there. Yep. Okay. Thanks a lot. I appreciate it. Thank you. Our next question comes from the line of Nathan Race of Piper Sandler. Please go ahead, Nathan. Hey, guys. Good morning. Thanks for taking the questions. This is Yvette. I was hoping to unpack just the decline in deposit costs in the quarter, some of the drivers there.
Uh, favorable, uh, deposits. Reductions slightly.
yeah, you bet Nate um,
Operator: So maybe, Tim, could you just speak to how much of the opportunity to reduce deposit costs in the quarter was just a function of more rational competition in Chicago these days, or maybe just some complexion changes in terms of the Wintrust deposit composition over the years that has allowed you guys to put up some pretty favorable deposit reductions lately? Yeah. Yvette, Nate. I guess two things. One, our team did a really nice job moving deposits as the Fed moved, and we talked about the expectation that we would be able to do that, and that, in fact, did play out in Q4. We also had kind of a nice trend in terms of DDA deposits during the quarter. That can be a little bit lumpy at year-end as companies position themselves for their reporting activities.
Operator: So maybe, Tim, could you just speak to how much of the opportunity to reduce deposit costs in the quarter was just a function of more rational competition in Chicago these days, or maybe just some complexion changes in terms of the Wintrust deposit composition over the years that has allowed you guys to put up some pretty favorable deposit reductions lately? Yeah. Yvette, Nate. I guess two things. One, our team did a really nice job moving deposits as the Fed moved, and we talked about the expectation that we would be able to do that, and that, in fact, did play out in Q4. We also had kind of a nice trend in terms of DDA deposits during the quarter. That can be a little bit lumpy at year-end as companies position themselves for their reporting activities.
Talked about the expectation that would we we would be able to do that and that in fact did did play out in the fourth quarter. Um we also had you know kind of a nice Trend in terms of DDA deposits during the quarter that that can be a little bit lumpy at year end as companies position themselves for you know their reporting activities but um you know we continue to see good growth in terms of the commercial deposits of the bank and the treasury Services they use and um you know we're going to continue to work that mix. It's just a can be a little bit lumpy but we were very pleased with the way. The positive costs were managed in the quarter.
Okay great that's helpful. And then you know just looking at some of the deposit growth drivers. It looks like it mainly came in the non uh maturity um segment. So just curious, you know, do you see additional opportunities to run off higher costs?
Uh CDs going forward and you can just speak to maybe the CD repricing uh benefit that you have with you know like 95% or so of your deposits uh that are CDs maturing uh by being of this year.
Operator: But we continue to see good growth in terms of the commercial deposits of the bank and the treasury services they use, and we're going to continue to work that mix. It just can be a little bit lumpy, but we were very pleased with the way deposit costs were managed in the quarter. Okay. Great. That's helpful. And then just looking at some of the deposit growth drivers, it looked like it mainly came in the non-maturity segment. So just curious, do you see additional opportunities to run off higher cost CDs going forward? And can you kind of just speak to maybe the CD repricing benefit that you have with like 95% or so of your deposits that are CDs maturing by the end of this year? Yeah. I think there's probably a minor benefit.
Operator: But we continue to see good growth in terms of the commercial deposits of the bank and the treasury services they use, and we're going to continue to work that mix. It just can be a little bit lumpy, but we were very pleased with the way deposit costs were managed in the quarter. Okay. Great. That's helpful. And then just looking at some of the deposit growth drivers, it looked like it mainly came in the non-maturity segment. So just curious, do you see additional opportunities to run off higher cost CDs going forward? And can you kind of just speak to maybe the CD repricing benefit that you have with like 95% or so of your deposits that are CDs maturing by the end of this year? Yeah. I think there's probably a minor benefit.
Yeah, I think there's a, you know, probably a minor benefit um and it's not again. I would emphasize minor on the CD book rolling as we, you know, continued into 2026. But um, you know, the the non-interest, or the interest-bearing deposit growth, you know, supports our loan growth. And as we continue to grow loans at a pretty healthy level, you know, we've stated that we would try to continue to fund that with new deposits and
Speaker #4: And we're going to continue to work that mix. It's just it can be a little bit lumpy. But we were very pleased with the way deposit costs were managed in the
you know, our deposit costs can be a little bit higher than some of our peers. We're fine with that as we add clients to the bank, that will be with us for a long time.
Understood. I appreciate all the caller. Thanks guys, congrats on nice quarter.
Thank you.
Speaker #4: quarter.
Thank you.
Speaker #6: That's—I, well, I think as—
Our next question.
Speaker #6: And then just looking at some of the deposit
Speaker #6: growth drivers, it looked like it mainly came in the non-maturity segment. So just curious, do you see additional opportunities to run off higher costs CDs going forward?
Comes from the line of Chris McGrady of kpw. Your line is open. Chris
Oh, great morning. Um,
Speaker #6: And can you kind of just speak to maybe the we'd like the mortgage business to be stronger.
Speaker #6: And can you kind of just speak to maybe the we'd like the mortgage business to be stronger. Well, And Understood. Okay. I Great.
Tim or Dave, I guess. What's, what's not? Where you want it to be. It seems like a lot of positives in 1 column. What, what's, what's not, where you want it to be in terms of either growth by asset class, uh, or anything operationally.
Speaker #6: year?
Speaker #4: a minor benefit and it's, again, I would emphasize minor on the CD book rolling as we continue into 2026. But the non-interest or the interest-bearing deposit growth supports our loan growth.
Operator: Again, I would emphasize minor on the CD book rolling as we continue into 2026. But the non-interest or the interest-bearing deposit growth supports our loan growth. As we continue to grow loans at a pretty healthy level, we've stated that we would try to continue to fund that with new deposits. Our deposit costs can be a little bit higher than some of our peers. We're fine with that as we add clients to the bank that will be with us for a long time. Understood. I appreciate it, operator. Thanks, guys. Congrats on a nice quarter. Thank you. Thank you. Our next question comes from the line of Chris McGratty of KBW. Your line is open, Chris. Oh, great. Morning. Tim or Dave, I guess, what's not where you want it to be? It seems like a lot of positives in one column.
Operator: Again, I would emphasize minor on the CD book rolling as we continue into 2026. But the non-interest or the interest-bearing deposit growth supports our loan growth. As we continue to grow loans at a pretty healthy level, we've stated that we would try to continue to fund that with new deposits. Our deposit costs can be a little bit higher than some of our peers. We're fine with that as we add clients to the bank that will be with us for a long time. Understood. I appreciate it, operator. Thanks, guys. Congrats on a nice quarter. Thank you. Thank you. Our next question comes from the line of Chris McGratty of KBW. Your line is open, Chris. Oh, great. Morning. Tim or Dave, I guess, what's not where you want it to be? It seems like a lot of positives in one column.
Well, we we'd like the mortgage business to be stronger. We think we've done a good job of pairing back the expense related to that business. So it's not damaging to us at these relatively low levels, you know, from a volume standpoint
um,
Speaker #4: loans at a pretty healthy level, we've stated that we would try to continue to fund that with new deposits. And our deposit costs can be a little bit higher than some of our peers.
Speaker #4: We're fine with that as we add
Speaker #4: clients to the bank that will be with us for a long time.
Speaker #6: appreciate all the color. Thanks, guys. Congrats on a nice quarter.
you know, we'd always like more commercial activity but we remain pretty disciplined about trying to pick relationships versus transaction activity and um, you know, periodically as some of our peers try to get loan growth, we've seen some transactional activity and some odd pricing, but, um, we think we're, we continue to be well, positioned in the market. Um, sizewise, there are very few local institutions near where we are, um, we think that's an advantage for us and, um, you know, net, net, we continue to feel like we're in a pretty good position.
Speaker #2: question. Comes from the line of Chris McGrady of KBW. Your line is open,
Speaker #2: Chris.
Okay and then just following up Tim you don't need to do a deal um with that kind of growth. Um but you have historically kind of entertained tuck in like what's the latest on m&a appetite?
Speaker #7: what's not where you want it to be? It seems like a lot of positives in one column. What's not where you want it to be in terms of either growth by asset class or anything
Yeah, Chris you're right. I mean
We're aiming.
Operator: What's not where you want it to be in terms of either growth by asset class or anything operationally? Well, we'd like the mortgage business to be stronger. We think we've done a good job of paring back the expense related to that business so it's not damaging to us at these relatively low levels from a volume standpoint. We'd always like more commercial activity, but we remain pretty disciplined about trying to pick relationships versus transaction activity. And periodically, as some of our peers try to get loan growth, we've seen some transactional activity and some odd pricing. But we think we continue to be well-positioned in the market. Size-wise, there are very few local institutions near where we are. We think that's an advantage for us. And net-net, we continue to feel like we're in a pretty good position. Okay.
Operator: What's not where you want it to be in terms of either growth by asset class or anything operationally? Well, we'd like the mortgage business to be stronger. We think we've done a good job of paring back the expense related to that business so it's not damaging to us at these relatively low levels from a volume standpoint. We'd always like more commercial activity, but we remain pretty disciplined about trying to pick relationships versus transaction activity. And periodically, as some of our peers try to get loan growth, we've seen some transactional activity and some odd pricing. But we think we continue to be well-positioned in the market. Size-wise, there are very few local institutions near where we are. We think that's an advantage for us. And net-net, we continue to feel like we're in a pretty good position. Okay.
Speaker #7: operationally?
Organic growth and, and that would be our plan. If we get, um, an opportunity to do an acquisition. We, we think we're reasonably good at
Speaker #4: We think we've done a good job of paring back the expense related to that business so it's not damaging to us at these relatively low levels from a volume standpoint.
Speaker #4: commercial activity, but we remain pretty disciplined about trying to pick relationships versus transaction activity. And periodically, as some of our peers try to get loan growth, we've seen some transactional activity and some odd pricing.
Um, Acquisitions. At least the the smaller ones that we've done, um, you know, conversations continue. There's, you know, a little bit of fits and starts, but, you know, nothing that's worth talking about right now. And, and our business plan for 2026 is, is based on growing our business organically.
Great. Thank you.
Thank you.
Next question comes from the line of Brendan nosso of Opti group. Please go ahead Brendan
Speaker #4: think we continue to be well-positioned in the market. Size-wise, there are very few local institutions near where we are. We think that's an advantage for us.
Hey, good morning everybody. Hope you're doing well.
Speaker #4: position.
Just to start off, good morning, um, just to start off on on Capitol. Um, you know, you've built ratios nicely over the last 12 months despite, you know, robust long growth. Um is there a point in which you see an alternative deployment uh,
Operator: Then just following up, Tim, you don't need to do a deal with that kind of growth, but you have historically kind of entertained tuck-ins. What's the latest on M&A appetite? Yeah, Chris, you're right. I mean, we're aiming for organic growth, and that would be our plan. If we get an opportunity to do an acquisition, we think we're reasonably good at acquisitions, at least the smaller ones that we've done. Conversations continue. There's a little bit of fits and starts, but nothing that's worth talking about right now. And our business plan for 2026 is based on growing our business organically. Great. Thank you. Thank you. Our next question comes from the line of Brendan Nosal of Hovde Group. Please go ahead, Brendan. Hey, good morning, everybody. Hope you're doing well. Good morning. Just to start off, good morning.
Operator: Then just following up, Tim, you don't need to do a deal with that kind of growth, but you have historically kind of entertained tuck-ins. What's the latest on M&A appetite? Yeah, Chris, you're right. I mean, we're aiming for organic growth, and that would be our plan. If we get an opportunity to do an acquisition, we think we're reasonably good at acquisitions, at least the smaller ones that we've done. Conversations continue. There's a little bit of fits and starts, but nothing that's worth talking about right now. And our business plan for 2026 is based on growing our business organically. Great. Thank you. Thank you. Our next question comes from the line of Brendan Nosal of Hovde Group. Please go ahead, Brendan. Hey, good morning, everybody. Hope you're doing well. Good morning. Just to start off, good morning.
Speaker #7: deal. With that kind of growth, but you have historically kind of entertained tuck-ins. What's the latest on M&A
For for Capital beyond the the dividend and organic growth.
well, I think as we talked with
I mean, generally.
Growing Capital at 10 basis points, a quarter Plus, or plus, or minus. Um,
Speaker #4: organic growth, and that would be our plan if we get an opportunity to do an acquisition. We think we're reasonably good at acquisitions, at least the smaller ones that we've done.
Speaker #4: Conversations continue. There's a little bit of fits and starts, but nothing that's worth talking about right now. And our business plan for 2026 is based on growing our business organically.
if if that number starts to get to 10 and a half or above, uh, and we don't have any good uh,
Speaker #7: Great. Thank
Acquisition opportunities and organic growth is, you know, mid to high single digits, you know, that that number would keep growing. So then I think you would look at, you know, a BuyBacks and then at dividend increases but generally it would be organic growth.
Speaker #2: Thank
Speaker #2: the line of Brendan Nosso of D Group. Please go ahead,
Speaker #2: Brendan.
Speaker #8: Hey, good helpful. morning, everybody.
Well priced, you know Acquisitions a smaller Acquisitions. I I I think would be number 2 then a buyback and just uh uh
Speaker #8: well. Just to start off, good morning. Just to start off on capital, you've built ratios nicely over the last 12 months despite robust loan growth.
Operator: Just to start off on capital, you've built ratios nicely over the last 12 months despite robust loan growth. Is there a point at which you see an alternative deployment outlet for capital beyond the dividend and organic growth? Well, I think as we talked before, I mean, generally, if you grow that mid to high single digits, we're probably growing capital at 10 basis points a quarter ±. And we've been doing that. I think, as we said before, we want to focus on organic growth and see how strong that is. If that number starts to get to 10 and a half or above and we don't have any good acquisition opportunities and organic growth is mid to high single digits, that number would keep growing. So then I think you would look at buybacks and then dividend increases.
Operator: Just to start off on capital, you've built ratios nicely over the last 12 months despite robust loan growth. Is there a point at which you see an alternative deployment outlet for capital beyond the dividend and organic growth? Well, I think as we talked before, I mean, generally, if you grow that mid to high single digits, we're probably growing capital at 10 basis points a quarter ±. And we've been doing that. I think, as we said before, we want to focus on organic growth and see how strong that is. If that number starts to get to 10 and a half or above and we don't have any good acquisition opportunities and organic growth is mid to high single digits, that number would keep growing. So then I think you would look at buybacks and then dividend increases.
Speaker #8: Is there a point at which following up, Tim, I mean, you don't need to do a Hope you're doing But we
Speaker #8: you see an alternative deployment outlet for capital beyond the dividend and organic growth?
Or reference. Uh, we haven't talked about this in a while, but we do have a little over 200 million dollars of authorized buyback plan in place that we could use down the road if we wanted to. But right now, I think we're, we're letting it grow a little bit, um, going to see how the organic growth opportunities go, and whether we can use it for that and, and then, we'll, we'll play by year after after after a couple quarters.
Speaker #3: we talked before, I mean, generally, if you grow that mid to high single digits, we're probably growing capital at 10 basis points a quarter plus or minus.
Speaker #3: so we've been doing that. I think as we said before, we want to focus on organic growth and see how strong that is. If that number starts to get to 10 and a half or above, and we don't have any good acquisition opportunities and organic growth is mid to high single digits, that number would keep growing.
Speaker #3: So then I think you would look at a buyback and then dividend increases. But I think there's a probably Oh, great.
Okay. Okay, that's helpful. Thanks. Um, 1 more from me just pivoting to um credit uh and specifically The the Reserve, you know. I think if I look back over the past 2 years, you've been gradually shaving, a couple basis points here. And there off um, Reserve ratio is whether it's the stated reserved to loan or the ACL to to the core loan portfolio. Um, I get that a lot of that is is formulaic and driven by outside doctors but just kind of take us through the thought process on gradually bringing down reserves uh and you know where do you see coverage, ratios trending across 2026?
Operator: But generally, it would be organic growth, well-priced acquisitions, smaller acquisitions, I think, would be number two, then a buyback. And just for reference, we haven't talked about this in a while, but we do have a little over $200 million of an authorized buyback plan in place that we could use down the road if we wanted to. But right now, I think we're letting it grow a little bit. Going to see how the organic growth opportunities go and whether we can use it for that. And then we'll play it by ear after a couple of quarters down the road. Okay. Okay. That's helpful. Thanks. One more from me, just pivoting to credit and specifically the reserve.
Operator: But generally, it would be organic growth, well-priced acquisitions, smaller acquisitions, I think, would be number two, then a buyback. And just for reference, we haven't talked about this in a while, but we do have a little over $200 million of an authorized buyback plan in place that we could use down the road if we wanted to. But right now, I think we're letting it grow a little bit. Going to see how the organic growth opportunities go and whether we can use it for that. And then we'll play it by ear after a couple of quarters down the road. Okay. Okay. That's helpful. Thanks. One more from me, just pivoting to credit and specifically the reserve.
Speaker #3: Generally, it would be organic. Yeah, Chris, you're right.
Speaker #3: Growth, well-priced acquisitions, smaller acquisitions—I think would be number two. Then a buyback, and just for reference, we haven't talked about this in a while, but we do have a little over $200 million of an authorized buyback plan in place that we could use down the road if we wanted to.
Speaker #3: But right now, I think we're letting it grow a little bit. Going to see how the organic growth opportunities go, and whether we can use it for that.
Speaker #3: And then we'll play it by ear after a couple of quarters down the road.
Speaker #3: road.
Speaker #7: Okay. Okay.
Speaker #7: That's helpful, thanks. One more from me, just pivoting to credit and specifically the reserve. I think if I look back over the past two years, you've been gradually shaving a couple of basis points here and there off reserve ratios, whether it's the stated reserve to loan or the ACL to the core loan portfolio.
Operator: I think if I look back over the past two years, you've been gradually shaving a couple of basis points here and there off reserve ratios, whether it's the stated reserve to loan or the ACL to the core loan portfolio. I get that a lot of that is formulaic and driven by outside factors. But just kind of take us through the thought process on gradually bringing down reserves and where do you see coverage ratios trending across 2026? Well, we don't plan whether to build reserves or take reserves away. The CECL process, the macroeconomic factors, the mix of the portfolio, and the process we go through to determine reserves really determines the level of those reserves. So if the economic forecast gets much worse for some reason, if the economy gets worse, then you're going to see that coverage ratio go up.
Operator: I think if I look back over the past two years, you've been gradually shaving a couple of basis points here and there off reserve ratios, whether it's the stated reserve to loan or the ACL to the core loan portfolio. I get that a lot of that is formulaic and driven by outside factors. But just kind of take us through the thought process on gradually bringing down reserves and where do you see coverage ratios trending across 2026? Well, we don't plan whether to build reserves or take reserves away. The CECL process, the macroeconomic factors, the mix of the portfolio, and the process we go through to determine reserves really determines the level of those reserves. So if the economic forecast gets much worse for some reason, if the economy gets worse, then you're going to see that coverage ratio go up.
Well, we we don't, you know, we don't plan whether to build reserves or take reserves away the Cecil process and the economic macroeconomic factors and the mix of the portfolio and the, the the process we go through to determine reserves really determines the level of those reserves. So, you know, if the economic forecast gets much worse for some reason, if if, if, if the economy gets worse and you're going to see that coverage ratio, go up what we saw started during the year is that the economic forecast, generally, we're getting better. And, and so, the, the model just spits out the the results but uh, our our credit, as we talked about, has been very good. Our criticized, the classified levels are very low. Our npas are very low, our charge us, you know, our our, our low. And so we we add economic conditions or even some commercial real estate price and index. These got better early in the year and and the like and so you know we we really
Speaker #7: I get that a lot of that is formulaic and driven by outside factors. But just kind of take us through the thought process on gradually bringing down reserves, and where do you see coverage ratios trending across 2026?
Speaker #3: Well, we don't plan whether to build reserves or take reserves away. The CISO process and the macroeconomic factors and the mix of the portfolio and the process we go through to determine reserves really determines the level of those reserves.
We do a fairly thorough process of of using economic data digging down, with our our teams and the loan side to build what that Reserve should be. So we don't go into it with some preconceived notion that we should build reserves or re release reserves. We we look at all the factors and and record the provision accordingly. So I I don't want to give you an Outlook as to whether you're going to build or or release because I don't know what the economic factors are going to be in the future. And and if you remember Cecil's a forward-looking concept,
Backward-looking cops.
Speaker #3: So, if the economic forecast gets much worse for some reason, if the economy gets worse, you're going to see that coverage ratio go up. What we saw starting during the year is that the economic forecasts generally were getting better.
Yep. Yep. That that makes a great deal of sense. Uh well thanks for the caller and taking the questions.
Thank you.
Operator: What we saw started during the year is that the economic forecasts generally were getting better. And so the model just spits out the results. But our credit, as we talked about, has been very good. Our criticized and classified levels are very low. Our NPAs are very low. Our charge-offs are low. And so we had economic conditions where even some commercial real estate price indexes got better early in the year and the like. And so we really do a fairly thorough process of using economic data, digging down with our teams on the loan side to build what that reserve should be. So we don't go into it with some preconceived notion that we should build reserves or release reserves. We look at all the factors and record the provision accordingly.
Operator: What we saw started during the year is that the economic forecasts generally were getting better. And so the model just spits out the results. But our credit, as we talked about, has been very good. Our criticized and classified levels are very low. Our NPAs are very low. Our charge-offs are low. And so we had economic conditions where even some commercial real estate price indexes got better early in the year and the like. And so we really do a fairly thorough process of using economic data, digging down with our teams on the loan side to build what that reserve should be. So we don't go into it with some preconceived notion that we should build reserves or release reserves. We look at all the factors and record the provision accordingly.
Speaker #3: And so the model just spits out the results. But our credit, as we talked about, has been very good. Our criticized classified levels are very low.
Thank you. Our next question comes from the line of Jeff rules of dang. Davidson your line is open Jeff.
Speaker #3: Our NPAs are very low. Our charge-offs are low. And so we had economic conditions where even some commercial real estate pricing indexes got better early in the year and the like.
Speaker #3: And so we really do a fairly thorough process of using economic data, digging down with our teams on the loan side to build what that reserve should be.
Thanks good morning. Tim maybe just back to the, you talked about the macro environment being pretty favorable or optimistic with the customers. I wanted to touch on the the competitive uh landscape. You know, some of your larger Midwest, peers are engaged with deal activity down in in the Southeast in Texas. And and wanted to kind of is a portion of your growth or market share gains from from maybe competitors being focused elsewhere, just a a thought on if you could touch on that,
Speaker #3: So, we don't go into it with some preconceived notion that we should build reserves or release reserves. We look at all the factors and record the provision accordingly.
Sure. Um,
Speaker #3: So I don't want to give you an outlook as to whether you're going to build or release, because I don't know what the economic factors are going to be in the future.
Operator: So I don't want to give you an outlook as to whether you're going to build or release because I don't know what the economic factors are going to be in the future. And remember, CECL is a forward-looking concept, not a backward-looking concept. Yep. Yep. That makes a great deal of sense. Well, thanks for the color and taking the questions. Thank you. Thank you. Our next question comes from the line of Jeff Rulis of DA Davidson. Your line is open, Jeff. Thanks. Good morning, Tim. Maybe just back to the you talked about the macro environment being pretty favorable or optimistic with your customers. I wanted to touch on the competitive landscape.
Operator: So I don't want to give you an outlook as to whether you're going to build or release because I don't know what the economic factors are going to be in the future. And remember, CECL is a forward-looking concept, not a backward-looking concept. Yep. Yep. That makes a great deal of sense. Well, thanks for the color and taking the questions. Thank you. Thank you. Our next question comes from the line of Jeff Rulis of D.A. Davidson. Your line is open, Jeff. Thanks. Good morning, Tim. Maybe just back to the you talked about the macro environment being pretty favorable or optimistic with your customers. I wanted to touch on the competitive landscape.
Speaker #3: And remember, CISO is a forward-looking concept, not a backward-looking
We've we've always benefited from disruption distraction you know, call it whatever you want. But um we believe our position in the midwest is an attractive 1. We believe the markets we compete in. Um, are actually very good markets. There's a lot of density. There's a lot of wealth.
Speaker #3: concept. Yep.
Speaker #7: Yep. That makes a great deal of sense. Well, thanks for the color and taking the questions.
um, and to the extent that others elect to focus elsewhere at times,
Speaker #3: Thank
Speaker #3: you. Thank you.
I think that's only helpful to us, but, um, you know, we compete with all of the big Banks every day.
Speaker #2: Our next question comes from the line of Jeff Rulis of DA Davidson. Your line is open.
Speaker #2: Jeff. Thanks.
And, you know, a handful of of Chicago based competitors. And in some cases, credit unions and some of our markets. And um, so we believe we differentiate based on service and the people at the company. And and we'll continue to do that.
Operator: Some of your larger Midwest peers are engaged with deal activity down in the Southeast in Texas, and wanted to know if a portion of your growth or market share gains from maybe competitors being focused elsewhere? Just a thought on if you could touch on that. Sure. We've always benefited from disruption, distraction, call it whatever you want. But we believe our position in the Midwest is an attractive one. We believe the markets we compete in are actually very good markets. There's a lot of density. There's a lot of wealth. And to the extent that others elect to focus elsewhere at times, I think that's only helpful to us. But we compete with all of the big banks every day, and a handful of Chicago-based competitors, and, in some cases, credit unions in some of our markets.
Operator: Some of your larger Midwest peers are engaged with deal activity down in the Southeast in Texas, and wanted to know if a portion of your growth or market share gains from maybe competitors being focused elsewhere? Just a thought on if you could touch on that. Sure. We've always benefited from disruption, distraction, call it whatever you want. But we believe our position in the Midwest is an attractive one. We believe the markets we compete in are actually very good markets. There's a lot of density. There's a lot of wealth. And to the extent that others elect to focus elsewhere at times, I think that's only helpful to us. But we compete with all of the big banks every day, and a handful of Chicago-based competitors, and, in some cases, credit unions in some of our markets.
As as equal opportunity on that disruption, uh, as you've had in in maybe the prior year, I guess the question being any change to that.
Is that closing? Are you seeing folks kind of reorient with with the Midwest and and might be a more competitive year ahead? Loaded question,
Operator: So we believe we differentiate based on service and the people at the company, and we'll continue to do that. I guess, Tim, just to kind of follow up then, I mean, you've outstripped a little bit even the high single digit, I think, 11% loan growth. Just trying to think about timing, do you look at 2026 as equal opportunity on that disruption as you've had in maybe the prior year? I guess the question being, any change to that? Is that closing? Are you seeing folks kind of reorient with the Midwest and might be a more competitive year ahead? Loaded question. No. Well, it's hard to say. I think there certainly are lots of fits and starts for various competitors. We have some folks that are trying to open more locations in Chicago, and people that are trying to move teams.
Operator: So we believe we differentiate based on service and the people at the company, and we'll continue to do that. I guess, Tim, just to kind of follow up then, I mean, you've outstripped a little bit even the high single digit, I think, 11% loan growth. Just trying to think about timing, do you look at 2026 as equal opportunity on that disruption as you've had in maybe the prior year? I guess the question being, any change to that? Is that closing? Are you seeing folks kind of reorient with the Midwest and might be a more competitive year ahead? Loaded question. No. Well, it's hard to say. I think there certainly are lots of fits and starts for various competitors. We have some folks that are trying to open more locations in Chicago, and people that are trying to move teams.
No, I well it's hard to say. I think there certainly are lots of fits and starts for various competitors. And you know, we have some folks that are trying to open more locations in Chicago and, you know, people that are trying to move teams. So I I don't think that's anything really new. The only the only piece that I would say on loan growth relative to the last few years, is we've we've obviously had a little bit of a Tailwind in terms of Premium Finance with premiums rising in addition, to the bank growing. The number of units that that we produce and I think there is some flattening in terms of the, the premium environment for insurance companies
I I I don't, you know, people use soft and hard and all those terms. I I just I just think it's probably up to us to grow the loans now as opposed to getting help from the market.
Appreciate it and just 1 other 1, um, Rich. Um, looking at the link quarter, commercial non-performing loan, increase again, not big. And I could probably flat to down from the second quarter of the balances are kind of moving around. But anything you'd point to on the commercial link quarter, increase on non-performing loans.
Operator: So I don't think that's anything really new. The only piece that I would say on loan growth relative to the last few years is we've obviously had a little bit of a tailwind in terms of premium finance with premiums rising in addition to the bank growing the number of units that we produce. And I think there is some flattening in terms of the premium environment for insurance companies. I don't know, people use soft and hard and all those terms. I just think it's probably up to us to grow the loans now as opposed to getting help from the market. Appreciate it. And just one other one, Rich. Looking at the linked quarter commercial non-performing loan increase, again, not big, and I could probably flatten it down from the second quarter. So the balances are kind of moving around.
Operator: So I don't think that's anything really new. The only piece that I would say on loan growth relative to the last few years is we've obviously had a little bit of a tailwind in terms of premium finance with premiums rising in addition to the bank growing the number of units that we produce. And I think there is some flattening in terms of the premium environment for insurance companies. I don't know, people use soft and hard and all those terms. I just think it's probably up to us to grow the loans now as opposed to getting help from the market. Appreciate it. And just one other one, Rich. Looking at the linked quarter commercial non-performing loan increase, again, not big, and I could probably flatten it down from the second quarter. So the balances are kind of moving around.
No, not really, it's more episodic in nature. Um, and you know, we've said this in the past where we see things as just just kind of 1 off things and we work to solve them and and move along. Um, you know, I think, when I look at credit quality in the portfolio, I really focus on you know, where the special mentioned substandard numbers are, you know, which we're seeing at a pretty consistent level. So, you know, things like, well, occasionally go bump in the night and that's our, our job to fix those. Um, but, you know, this is really more for this quarter, at least, uh, more of a, you know, we would kind of identify it as more episodic,
Speaker #1: And just one other
And, and rich on the, I guess, as we approach a year from kind of the Tariff Liberation day noise, your sense of of customers. Is there more, maybe relative ease? I mean that threat is always out there but uh, from a, from a customer standpoint, do you sense any more comfortability than you were 9 months ago?
around the tariffs is, is is
Operator: But anything you'd point to on the commercial loan quarter increase on non-performing loans? No, not really. It's more episodic in nature. And we've said this in the past where we see things as just kind of one-off things, and we work to solve them and move along. I think when I look at credit quality in the portfolio, I really focus on where the special mention substandard numbers are, which we're seeing at a pretty consistent level. So things will occasionally go bump in the night, and that's our job to fix those. But this is really more, for this quarter at least, more of a we would kind of identify it as more episodic. And Rich, on the, I guess as we approach a year from kind of the tariff liberation day noise, your sense of customers, is there more maybe relative ease?
Operator: But anything you'd point to on the commercial loan quarter increase on non-performing loans? No, not really. It's more episodic in nature. And we've said this in the past where we see things as just kind of one-off things, and we work to solve them and move along. I think when I look at credit quality in the portfolio, I really focus on where the special mention substandard numbers are, which we're seeing at a pretty consistent level. So things will occasionally go bump in the night, and that's our job to fix those. But this is really more, for this quarter at least, more of a we would kind of identify it as more episodic. And Rich, on the, I guess as we approach a year from kind of the tariff liberation day noise, your sense of customers, is there more maybe relative ease?
Speaker #1: on non-performing That's helpful.
Speaker #1: on non-performing That's helpful.
Real I think probably maybe even more. So is, you know, I think labor costs are, you know, if you go back, you know, a year or 2 years ago, um, you know, labor costs, um, and finding labor was really be, you know, problematic I think that that's improved quite a bit. Um, and um, I think people kind of look at just a more stable labor, environment more predictable for
Um, an expense perspective and so they they're they're a little more comfortable today.
I appreciate it.
Thank you.
Our next question comes from the line, uh, David long of Raymond James, your line is open, David,
Hi everyone.
Good morning, David.
The, you know, we talked about m&a and I understand you guys have an excellent organic growth.
Operator: I mean, that threat is always out there. But from a customer standpoint, do you sense any more comfortability than you were nine months ago? Yeah. I think the ease around the tariffs is real. I think probably maybe even more so is, I think labor costs are, if you go back a year or two years ago, labor costs and finding labor was really problematic. I think that that's improved quite a bit. And I think people kind of look at just a more stable labor environment, more predictable from an expense perspective. And so they're a little more comfortable today. Great. Appreciate it. Thank you. Our next question comes from the line of David Long of Raymond James. Your line is open, David. Hi, everyone. Good morning, David.
Operator: I mean, that threat is always out there. But from a customer standpoint, do you sense any more comfortability than you were nine months ago? Yeah. I think the ease around the tariffs is real. I think probably maybe even more so is, I think labor costs are, if you go back a year or two years ago, labor costs and finding labor was really problematic. I think that that's improved quite a bit. And I think people kind of look at just a more stable labor environment, more predictable from an expense perspective. And so they're a little more comfortable today. Great. Appreciate it. Thank you. Our next question comes from the line of David Long of Raymond James. Your line is open, David. Hi, everyone. Good morning, David.
Speaker #1: there.
Speaker #1: But from that.
Speaker #1: But from that.
Speaker #1: But from
Opportunity in front of you and fully taking advantage of it. But in the past, you've talked about other msas and looking to replicate what you do in Chicago and other msas Minneapolis St. Louis, um,
Indianapolis have been mentioned. Is there any appetite?
To move outside of the Chicago, MSA at this point.
Speaker #3: finding labor was really
Well, I mean, we're in southeast Wisconsin and and West Michigan now, which you know, David, I mean, we would be opportunistic um, in other Midwest geographies that we don't cover today.
But that would be on a disciplined basis. And
where we haven't been able to acquire, we've, in some cases, open branches and we've been effective in doing so
We've talked in the past about Rockford and we've got some branches opening in in Northwest Indiana this coming year. So, um, we'll we'll take the opportunities as they come to us, but um, if if we need to go to other geographies organically, we think we've proven our ability to do that.
Speaker #3: Morning, things have just kind of
Operator: We talked about M&A, and I understand you guys have an excellent organic growth opportunity in front of you and fully taking advantage of it. But in the past, you've talked about other MSAs and looking to replicate what you do in Chicago and other MSAs. Minneapolis, St. Louis, and Indianapolis have been mentioned. Is there any appetite to move outside of the Chicago MSA at this point? Well, I mean, we're in Southeast Wisconsin and West Michigan now, which you know, David. I mean, we would be opportunistic in other Midwest geographies that we don't cover today, but that would be on a disciplined basis. Where we haven't been able to acquire, we've in some cases opened branches, and we've been effective in doing so. We've talked in the past about Rockford, and we've got some branches opening in Northwest Indiana this coming year.
Operator: We talked about M&A, and I understand you guys have an excellent organic growth opportunity in front of you and fully taking advantage of it. But in the past, you've talked about other MSAs and looking to replicate what you do in Chicago and other MSAs. Minneapolis, St. Louis, and Indianapolis have been mentioned. Is there any appetite to move outside of the Chicago MSA at this point? Well, I mean, we're in Southeast Wisconsin and West Michigan now, which you know, David. I mean, we would be opportunistic in other Midwest geographies that we don't cover today, but that would be on a disciplined basis. Where we haven't been able to acquire, we've in some cases opened branches, and we've been effective in doing so. We've talked in the past about Rockford, and we've got some branches opening in Northwest Indiana this coming year.
Great. Thanks. Tim. Appreciate taking my question, that's all that I have.
You bet. Thanks David.
Thank you.
Our next question.
Echo boy.
Uh, uh, Stephen zinc, Terry, your line is open.
Speaker #4: mean, we're in Southeast
Thank you. Um maybe Tim just a question for you as as the industry continues to evolve. What are your current thoughts on the uh strategic benefits of operating 16 banking Charters kind of relative to some of the costs and and and leveraging the wind wind trust brand.
Yeah.
Operator: So we'll take the opportunities as they come to us. But if we need to go to other geographies organically, we think we've proven our ability to do that. Great. Thanks, Tim. Appreciate you taking my question. That's all that I have. You bet. Thanks, David. Thank you. Our next question comes from the line of Terry McAvoy of Stephens Inc. Terry, your line is open. Thank you. Maybe, Tim, just a question for you. As the industry continues to evolve, what are your current thoughts on the strategic benefits of operating 16 banking charters kind of relative to some of the costs and leveraging the Wintrust brand? Yeah. The charter question comes up periodically, and we currently have 16 for those of you that are following along. We believe they continue to be a benefit for us. They keep us closer to the market than many of our competitors.
Operator: So we'll take the opportunities as they come to us. But if we need to go to other geographies organically, we think we've proven our ability to do that. Great. Thanks, Tim. Appreciate you taking my question. That's all that I have. You bet. Thanks, David. Thank you. Our next question comes from the line of Terry McAvoy of Stephens Inc. Terry, your line is open. Thank you. Maybe, Tim, just a question for you. As the industry continues to evolve, what are your current thoughts on the strategic benefits of operating 16 banking charters kind of relative to some of the costs and leveraging the Wintrust brand? Yeah. The charter question comes up periodically, and we currently have 16 for those of you that are following along. We believe they continue to be a benefit for us. They keep us closer to the market than many of our competitors.
The charter question, you know, comes up periodically and we currently have 16. For those of you that, you know, are following along, um, we believe they continue to be a benefit for us. They keep us closer to the market than many of our competitors. Um, we've centralized most of the infrastructure and expense that goes along with the charters, and so it's really more of a marketing and, and Market function, um, that we believe is valuable to us. And if you look at the communities in which we operate in many of those communities, we're the number 1 or number 2 market share in very attractive markets.
Um, that's not a, not a benefit. We want to give up at this point so we watch it carefully. The the expense is not trajectory changing its, um, a structure that we believe we operate well, and, um, we'll continue to evaluate it as we go. But, uh, for the time being, we like it, there are clearly, you know, benefits, Deposit Insurance, is 1 of them. Our Max safe product obviously gives us the ability.
To provide customers more Insurance than they might. Otherwise get there there are other benefits and and you know, as you would expect there's some other trade-offs but um, the net balance for us remains positive,
Operator: We've centralized most of the infrastructure and expense that goes along with the charters. And so it's really more of a marketing and market function that we believe is valuable to us. And if you look at the communities in which we operate, in many of those communities, we're the number one or number two market share in very attractive markets. That's not a benefit we want to give up at this point. So we watch it carefully. The expense is not trajectory changing. It's a structure that we believe we operate well, and we'll continue to evaluate it as we go. But for the time being, we like it. There are clearly benefits. Deposit insurance is one of them. Our MaxSafe product obviously gives us the ability to provide customers more insurance than they might otherwise get. There are other benefits.
Operator: We've centralized most of the infrastructure and expense that goes along with the charters. And so it's really more of a marketing and market function that we believe is valuable to us. And if you look at the communities in which we operate, in many of those communities, we're the number one or number two market share in very attractive markets. That's not a benefit we want to give up at this point. So we watch it carefully. The expense is not trajectory changing. It's a structure that we believe we operate well, and we'll continue to evaluate it as we go. But for the time being, we like it. There are clearly benefits. Deposit insurance is one of them. Our MaxSafe product obviously gives us the ability to provide customers more insurance than they might otherwise get. There are other benefits.
Thanks Tim. And then, as a follow-up about a third of last quarter's loan, growth was in mortgage warehouse. And I think in the past, you've talked about gaining market share, uh, but when you kind of look at the forward curve, is that portfolio. Kind of a headwind. A Tailwind to growth expectations for 26.
Speaker #4: And so it's
Operator: And as you would expect, there are some other trade-offs. But the net balance for us remains positive. Thanks, Tim. And then as a follow-up, about 1/3 of last quarter's loan growth was in mortgage warehouse. And I think in the past, you've talked about gaining market share. But when you kind of look at the forward curve, is that portfolio kind of a headwind, a tailwind to growth expectations for 2026? Well, obviously, it depends on what happens to the mortgage market. We've been successful in growing that business in a stable mortgage market because of the expertise our team brings and the job our folks do from an operational standpoint. But for us, that's a zero-loss business with very attractive dynamics. We think we're very efficient. It'll move a little bit with the mortgage volume over time.
Operator: And as you would expect, there are some other trade-offs. But the net balance for us remains positive. Thanks, Tim. And then as a follow-up, about 1/3 of last quarter's loan growth was in mortgage warehouse. And I think in the past, you've talked about gaining market share. But when you kind of look at the forward curve, is that portfolio kind of a headwind, a tailwind to growth expectations for 2026? Well, obviously, it depends on what happens to the mortgage market. We've been successful in growing that business in a stable mortgage market because of the expertise our team brings and the job our folks do from an operational standpoint. But for us, that's a zero-loss business with very attractive dynamics. We think we're very efficient. It'll move a little bit with the mortgage volume over time.
Successful in in growing that business in a stable mortgage Market, because of the expertise, our team brings and the the job, our folks do from an operational standpoint. But, um, you know, for us, that's a, that's a zero loss business. With very attractive Dynamics. We, we think we're very efficient. Um, it, it'll move a little bit with the mortgage volume over time. And if, uh, the mortgage Market gets stronger, as we've talked about, it's it's a benefit to us both in terms of our Core Business and the, the warehouse business. Yeah. In addition to which, you know, they think that it's it's it's a great Point. Tim brings up, you know, it's uh the market obviously but they've done a really nice job of bringing new names in. Um and that comes with, you know, if you get the volume you also get some fee income out of that and some very nice deposits. So, I mean, it's really, it's been a great story in spite of the fact that you might get some value.
Speaker #6: Was in mortgage warehouse, and I beta cycle to date, around
Volatility and overall rates. So uh, we we like where we sit in that space right now but and I tarry the state director, I would just add the mortgage Market's been bouncing around the bottom for so long, right? Say over over a period of time, there's way more upside than downside there. It just doesn't seem like the, the volumes are going to go much lower in the mortgage market. So I, I would think net net over a quarter to quarter. It may change a little bit but net net.
Okay, thanks for taking my questions. Appreciate it.
You bet.
Thank you. Our next question.
Comes from the line of Casey hair of autonomous research. Your line is open, Casey
Operator: And if the mortgage market gets stronger, as we've talked about, it's a benefit to us both in terms of our core business and the warehouse business. Yeah. In addition to which, I think it's a great point Tim brings up. It's the market, obviously, but they have done a really nice job of bringing new names in. And that comes with, if you get the volume, you also get some fee income out of that and some very nice deposits. So I mean, it's been a great story in spite of the fact that you might get some volatility in overall rates. So we like where we sit in that space right now. And Terry just stepped in. I would just add the mortgage market's been bouncing around the bottom for so long, I'd say, over a period of time. There's way more upside than downside there.
Operator: And if the mortgage market gets stronger, as we've talked about, it's a benefit to us both in terms of our core business and the warehouse business. Yeah. In addition to which, I think it's a great point Tim brings up. It's the market, obviously, but they have done a really nice job of bringing new names in. And that comes with, if you get the volume, you also get some fee income out of that and some very nice deposits. So I mean, it's been a great story in spite of the fact that you might get some volatility in overall rates. So we like where we sit in that space right now. And Terry just stepped in. I would just add the mortgage market's been bouncing around the bottom for so long, I'd say, over a period of time. There's way more upside than downside there.
Great, thanks. Good morning. Happy New Year, everyone. Um, Dave 1 of the to clarify, uh, your comments about the uh, operating leverage Dynamics. Um, I think you said you expect mid to high single-digit Revenue off of 25 and then expenses to grow mid to high, uh, you know, 4 to 5% versus the fourth quarter, run rate. Um, there's, there's a little bit of excitement that you
meant or that you said,
Mid to high single digits Revenue. Growth off the fourth quarter run rate, just wanted to clarify that.
Operator: It just doesn't seem like the volumes are going to go much lower in the mortgage market. So I would think net-net over a quarter to quarter may change a little bit, but net-net there's probably more upside than downside there. Exactly. Okay. Thanks for taking my questions. Appreciate it. You bet. Thank you. Our next question comes from the line of Casey Haire of Autonomous Research. Your line is open, Casey. Great. Thanks. Good morning. Happy New Year, everyone. Dave, wanted to clarify your comments about the operating leverage dynamics. I think you said you expect mid- to high single-digit revenue off of 2025 and then expenses to grow mid- to high 4% to 5% versus the Q4 run rate. There's a little bit of excitement that you meant or that you said mid- to high single-digit revenue growth off the Q4 run rate.
Operator: It just doesn't seem like the volumes are going to go much lower in the mortgage market. So I would think net-net over a quarter to quarter may change a little bit, but net-net there's probably more upside than downside there. Exactly. Okay. Thanks for taking my questions. Appreciate it. You bet. Thank you. Our next question comes from the line of Casey Haire of Autonomous Research. Your line is open, Casey. Great. Thanks. Good morning. Happy New Year, everyone. Dave, wanted to clarify your comments about the operating leverage dynamics. I think you said you expect mid- to high single-digit revenue off of 2025 and then expenses to grow mid- to high 4% to 5% versus the Q4 run rate. There's a little bit of excitement that you meant or that you said mid- to high single-digit revenue growth off the Q4 run rate.
Yeah, no, we're talking off of these and we since we generally have had have Acquisitions in past years and we grow organically so good. We we generally try to give you guidance off the fourth quarter run, right? Versus a full year. So when I'm talking when we're talking about 4 growth, we're talking about off of the fourth quarter run rate on both on both sides there.
Speaker #2: line is open,
Interest bearing deposit beta cycle to date around 57%, just some updated thoughts, as to where that can can Trend to.
Um, yeah, in 26.
Yeah, I I, you know, as we've talked about on prior calls, you know, our guests on the deposit data, you know, in terms of total Cycles going to be in the low 60s,
And, you know, we continue to believe if, if we get rate cuts that, we'll do a nice job managing the deposit, uh, the interest bearing deposit expense. And so, I I don't think our view has changed their
Operator: Just wanted to clarify that. Yeah. No, we're talking off of that since we generally have acquisitions in past years and we grow organically, so good, we generally try to give you guidance off the fourth quarter run rate versus a full year. So when we're talking about forward growth, we're talking about off of the fourth quarter run rate on both sides there. Wow. Okay. All right. And then just to follow up, then a couple of follow-ups on the NIM. So first off, I have your interest-bearing deposit beta cycle to date around 57%. Just some updated thoughts as to where that can trend to, yeah, in 2026. Yeah. As we've talked about on prior calls, our guess on the deposit beta in terms of total cycle is going to be in the low 60s%.
Operator: Just wanted to clarify that. Yeah. No, we're talking off of that since we generally have acquisitions in past years and we grow organically, so good, we generally try to give you guidance off the fourth quarter run rate versus a full year. So when we're talking about forward growth, we're talking about off of the fourth quarter run rate on both sides there. Wow. Okay. All right. And then just to follow up, then a couple of follow-ups on the NIM. So first off, I have your interest-bearing deposit beta cycle to date around 57%. Just some updated thoughts as to where that can trend to, yeah, in 2026. Yeah. As we've talked about on prior calls, our guess on the deposit beta in terms of total cycle is going to be in the low 60s%.
Speaker #1: grow organically so good, we
okay, very good and just last 1 for me, the Hedge program that you guys detail on slide 12 but you do have a a number of of Hedges that mature this year. Um does that you know hurt your ability to to to hold the NY stable or or is there a plan to
To backfill with new Hedges as they as they come off.
No. I our our guidance, uh, fully contemplates. Those those hedging programs running off, but we would expect to pay a market conditions to backfill that and just probably do some forward starts and fill in the, the gaps going forward as as they mature. But, uh, we we, we think given our current position, our current swaps in, in place and, and our growth, uh,
Projections, is that we will hold the margin in the 350s and as Tim said, if rates go up 2 or 3 times are down 2 or 3 times, we still think we're there. So we think we're very neutral.
Operator: We continue to believe, if we get rate cuts, that we'll do a nice job managing the interest-bearing deposit expense. So I don't think our view has changed there. Okay. Very good. And just last one for me. The hedge program that you guys detail on slide 12, you do have a number of hedges that mature this year. Does that hurt your ability to hold the NIM stable, or is there a plan to backfill with new hedges as they come off? Our guidance fully contemplates those hedging programs running off, but we would expect to, depending on market conditions, to backfill that and just probably do some forward starts and fill in the gaps going forward as they mature. But we think, given our current position, our current swaps in place, and our growth projections, that we will hold the margin in the 350s.
Operator: We continue to believe, if we get rate cuts, that we'll do a nice job managing the interest-bearing deposit expense. So I don't think our view has changed there. Okay. Very good. And just last one for me. The hedge program that you guys detail on slide 12, you do have a number of hedges that mature this year. Does that hurt your ability to hold the NIM stable, or is there a plan to backfill with new hedges as they come off? Our guidance fully contemplates those hedging programs running off, but we would expect to, depending on market conditions, to backfill that and just probably do some forward starts and fill in the gaps going forward as they mature. But we think, given our current position, our current swaps in place, and our growth projections, that we will hold the margin in the 350s.
For a full full year with with the margin.
Great. Thank you.
Thank you.
My next question.
Comes from the line of David, tarini of Jeffrey's your question, please, David.
Hi. Thanks, and maybe, uh, just starting off with further clarification on that run rate, comment. So are we talking for q26? Versus for Q2, those growth rate figures? Or are we talking full year? 26 versus the 4q 255 annualized?
I've taken 4 Q2 255 annualized that to get to a number and then you can put the growth rates on top of that for the full year of 26.
Operator: And as Tim said, if rates go up two or three times or down two or three times, we still think we're there. So we think we're very neutral for a full year with the margin. Great. Thank you. Thank you. Our next question comes from the line of David Chiaverini of Jefferies. Your question, please, David. Hi. Thanks. And maybe just starting off with further clarification on that run rate comment. So are we talking Q4 2026 versus Q4 2025, those growth rate figures, or are we talking full year 2026 versus the Q4 2025 annualized? I'm taking Q4 2025 annualized to get to a number, and then you can put the growth rates on top of that for the full year of 2026. Perfect. Thank you for that. And then I wanted to ask about the mortgage banking outlook. It sounds like that could be a nice swing factor for 2026.
Operator: And as Tim said, if rates go up two or three times or down two or three times, we still think we're there. So we think we're very neutral for a full year with the margin. Great. Thank you. Thank you. Our next question comes from the line of David Chiaverini of Jefferies. Your question, please, David. Hi. Thanks. And maybe just starting off with further clarification on that run rate comment. So are we talking Q4 2026 versus Q4 2025, those growth rate figures, or are we talking full year 2026 versus the Q4 2025 annualized? I'm taking Q4 2025 annualized to get to a number, and then you can put the growth rates on top of that for the full year of 2026. Perfect. Thank you for that. And then I wanted to ask about the mortgage banking outlook. It sounds like that could be a nice swing factor for 2026.
Perfect, thank you for that. Um, and then I wanted to ask about the uh, Mortgage Banking Outlook. It sounds like that. Could be a nice swing factor for 2026. Can you talk about your expectations, in terms of volume gain on sale margins? Whether those could increase or be under pressure and just give us a sense of how optimistic, uh, you are on that business.
Speaker #2: Thank
Well, I guess what we've always been optimistic, I think, the last 2 years, I've been optimistic for a great spring buying season, that hasn't occurred, but, you know, we're, we are optimistic, there's still a supply shortage out there. But I mean, if you look at our our mix of business in the fourth quarter, it was about 50/50 purchase and refi and and the prior 3 quarters, it was probably 3, quarters purchase and a and a quarter revised. So as rates have come down, we've seen a little bit of a
Speaker #6: talking full year
of a pickup in refi but also a slow um winter buying season in in the in the fourth quarter. But if you sort of look at the service portfolio that we have out there, which is
Operator: Can you talk about your expectations in terms of volume, gain on sale margins, whether those could increase or be under pressure, and just give us a sense of how optimistic you are on that business? Well, I guess we've always been optimistic. I think the last two years I've been optimistic for a great spring buying season. It hasn't occurred, but we are optimistic. There's still a supply shortage out there. But I mean, if you look at our mix of business in Q4, it was about 50/50 purchase and refi. And in the prior three quarters, it was probably three quarters purchase and a quarter refi. So as rates have come down, we've seen a little bit of a pickup in refi, but also a slow winter buying season in Q4.
Operator: Can you talk about your expectations in terms of volume, gain on sale margins, whether those could increase or be under pressure, and just give us a sense of how optimistic you are on that business? Well, I guess we've always been optimistic. I think the last two years I've been optimistic for a great spring buying season. It hasn't occurred, but we are optimistic. There's still a supply shortage out there. But I mean, if you look at our mix of business in Q4, it was about 50/50 purchase and refi. And in the prior three quarters, it was probably three quarters purchase and a quarter refi. So as rates have come down, we've seen a little bit of a pickup in refi, but also a slow winter buying season in Q4.
Speaker #5: But we are optimistic.
You know, a sizable portfolio. We've got maybe at at the current rates around in the low sixes we've got, you know, between 10 and 15% of that portfolio is sort of in the money to refi, but if rates go down to another 25 basis points or or let's say 50 basis points, you'd have more more like a quarter of that portfolio would be revvable. So we we think if rates go down 25 to 50 basis points in the mortgage side that we could have some pickup but you know, the 10 years has been been going up and so I I can't predict interest rates. Uh but we are we are optimistic that if the mortgage rates, stay where they are now,
And drop a little bit further into 26 that there. There's some pickup there. It it it it, there's upside and we don't think that going out going down. Much further is, is really
Speaker #5: But also a slow
Operator: But if you sort of look at the service portfolio that we have out there, which is a sizable portfolio, we've got maybe at the current rates around in the low 6s. We've got between 10% and 15% of that portfolio is sort of in the money to refi. But if rates go down another 25 basis points or, let's say, 50 basis points, you'd have more like 1/4 of that portfolio would be refiable. So we think if rates go down 25 to 50 basis points on the mortgage side, that we could have some pickup. But the ten-year has been going up. And so I can't predict interest rates, but we are optimistic that if the mortgage rates stay where they are now and drop a little bit further into 2026, that there's some pickup there. There's upside.
Operator: But if you sort of look at the service portfolio that we have out there, which is a sizable portfolio, we've got maybe at the current rates around in the low 6s. We've got between 10% and 15% of that portfolio is sort of in the money to refi. But if rates go down another 25 basis points or, let's say, 50 basis points, you'd have more like 1/4 of that portfolio would be refiable. So we think if rates go down 25 to 50 basis points on the mortgage side, that we could have some pickup. But the ten-year has been going up. And so I can't predict interest rates, but we are optimistic that if the mortgage rates stay where they are now and drop a little bit further into 2026, that there's some pickup there. There's upside.
Um, that probable we we've been in the low 20s for quite a while here, and, and with very low application volume. So unless rates, really shoot up in the mortgage Market. We we think we can hold this Revenue, so we look at it as upside. And we're optimistic, it happens, but we can't control the market rates.
Yeah. And and maybe the other benefit which is, um,
Couple years is as these low rates have continued, many of the sort of refinance um, independent broker mortgage operations have gone out of business. And so um, our share of the market we think is up considerably and when it comes back we expect to do well.
Very helpful. Thank you.
Thank you.
Our next question comes from the line of Ben gerlinger of City. Your line is open been
Hey, good morning.
Uh, good morning been
Operator: We don't think that going down much further is really that probable. We've been in the low 20s for quite a while here and with very low application volume. So unless rates really shoot up in the mortgage market, we think we can hold this revenue. So we look at it as upside, and we're optimistic it happens, but we can't control the mortgage rates. Yeah. And maybe the other benefit, which has been the case now for a couple of years, is as these low rates have continued, many of the sort of refinance independent broker mortgage operations have gone out of business. And so our share of the market, we think, is up considerably. And when it comes back, we expect to do well. Very helpful. Thank you. Thank you. Our next question comes from the line of Ben Gerlinger of Citi. Your line is open, Ben.
Operator: We don't think that going down much further is really that probable. We've been in the low 20s for quite a while here and with very low application volume. So unless rates really shoot up in the mortgage market, we think we can hold this revenue. So we look at it as upside, and we're optimistic it happens, but we can't control the mortgage rates. Yeah. And maybe the other benefit, which has been the case now for a couple of years, is as these low rates have continued, many of the sort of refinance independent broker mortgage operations have gone out of business. And so our share of the market, we think, is up considerably. And when it comes back, we expect to do well. Very helpful. Thank you. Thank you. Our next question comes from the line of Ben Gerlinger of Citi. Your line is open, Ben.
Just uh sorry just wanted to double check and maybe fine-tune a little bit here and I apologize for being a little myopic on it, but you talked through the mortgage or the uh, property Casualty Insurance market and I agreed softening versus strengthening, I don't know either, but it seems like the pricing is a little limited year-over-year. So is it fair to think like 2, Q will still be a good growth quarter but maybe not as heroic as we've seen previously. And and I'm just trying to finetune the first half of the year in terms of modeling growth
Yeah, I I think the only um point we were trying to make is that for the last couple of years, we've had the benefit of premiums going up that may not be the case right now. We don't think they're working against us but um we still expect a strong second quarter, it's a seasonal component of the Property and Casualty, you know, Premium Finance,
Business and um, we would expect to have a good second quarter.
Gotcha. And then just kind of
50,000 foot view. You guys generally tend to
Operator: Hey. Good morning. Good morning, Ben. Sorry. Just wanted to double-check and maybe fine-tune a little bit here. I apologize for being a little myopic on it, but you talked through the property casualty insurance market. I agree, softening versus strengthening, I don't know either. It seems like the pricing is a little limited year over year. So is it fair to think Q2 will still be a good growth quarter, but maybe not as heroic as we've seen previously? I'm just trying to fine-tune the first half of the year in terms of modeling growth. Yeah. I think the only point we were trying to make is that for the last couple of years, we've had the benefit of premiums going up. That may not be the case right now. We don't think they're working against us, but we still expect a strong second quarter.
Operator: Hey. Good morning. Good morning, Ben. Sorry. Just wanted to double-check and maybe fine-tune a little bit here. I apologize for being a little myopic on it, but you talked through the property casualty insurance market. I agree, softening versus strengthening, I don't know either. It seems like the pricing is a little limited year over year. So is it fair to think Q2 will still be a good growth quarter, but maybe not as heroic as we've seen previously? I'm just trying to fine-tune the first half of the year in terms of modeling growth. Yeah. I think the only point we were trying to make is that for the last couple of years, we've had the benefit of premiums going up. That may not be the case right now. We don't think they're working against us, but we still expect a strong second quarter.
show long growth in deposit growth and roughly. The same quarter, is that a fair way to think about this year given?
Kind of the what's transpired over over rates and your outlook for growth.
Yeah, we we certainly aim for uh, deposit growth to mirror our loan growth. Um, and we would take more deposit growth if we could get it. Again, that's adding clients that will be with us for a long time.
Um, you know, it can be lumpy. So I I can't tell you they're going to exactly mirror each other but that would be our Target.
gotcha a couple, maybe just
Thank you.
Our next question comes from the line of Jared Shaw Barkley, please go ahead and share it.
Thanks, good morning. Um must have been asked and answered but I guess just you know as you look at hiring incremental uh Revenue producers here. Are you seeing
Speaker #4: It's a up.
Operator: It's a seasonal component of the property and casualty premium finance business, and we would expect to have a good second quarter. Gotcha. And then just kind of at a 50,000-foot view, you guys generally tend to show loan growth and deposit growth in roughly the same quarter. Is that a fair way to think about this year given kind of what's transpired over rates and your outlook for growth? Yeah. We certainly aim for deposit growth to mirror our loan growth. And we would take more deposit growth if we could get it. Again, that's adding clients that will be with us for a long time. It can be lumpy, so I can't tell you they're going to exactly mirror each other, but that would be our target. Gotcha. That's helpful. Thank you, guys. Thank you. Our next question comes from the line of Jared Shaw of Barclays.
Operator: It's a seasonal component of the property and casualty premium finance business, and we would expect to have a good second quarter. Gotcha. And then just kind of at a 50,000-foot view, you guys generally tend to show loan growth and deposit growth in roughly the same quarter. Is that a fair way to think about this year given kind of what's transpired over rates and your outlook for growth? Yeah. We certainly aim for deposit growth to mirror our loan growth. And we would take more deposit growth if we could get it. Again, that's adding clients that will be with us for a long time. It can be lumpy, so I can't tell you they're going to exactly mirror each other, but that would be our target. Gotcha. That's helpful. Thank you, guys. Thank you. Our next question comes from the line of Jared Shaw of Barclays.
Speaker #4: seasonal component of the property and
Competition, uh impacting what you have to pay for uh, for for new people here or what's what sort of driving um the the the movement of of Revenue producers among companies right now?
Yeah, I don't I don't think there's been a hugely material change. Obviously top tier producers can be expensive and we we think we do a good job of not only
Working our own team and and you know, periodically finding others. We don't
Talk about it a lot here, just because it's a normal part of our business. And so we're always looking to add, um, folks that are very good at taking care of customers and help us differentiate our services.
Okay, thanks. And I just finally, you know, looking at construction uh, down this quarter, any um, any color on the build out of of construction and and how that could potentially be uh, funded up as we as we move through uh, next year or this year
What are you talking about? Just general construction Lending.
Operator: Please go ahead, Jared. Thanks. Good morning. Most have been asked and answered, but I guess just as you look at hiring incremental revenue producers here, are you seeing competition impacting what you have to pay for new people here, or what's sort of driving the movement of revenue producers among companies right now? Yeah. I don't think there's been a hugely material change. Obviously, top-tier producers can be expensive, and we think we do a good job of not only working our own team and periodically finding others. We don't talk about it a lot here just because it's a normal part of our business. So we're always looking to add folks that are very good at taking care of customers and help us differentiate our services. Okay. Thanks.
Operator: Please go ahead, Jared. Thanks. Good morning. Most have been asked and answered, but I guess just as you look at hiring incremental revenue producers here, are you seeing competition impacting what you have to pay for new people here, or what's sort of driving the movement of revenue producers among companies right now? Yeah. I don't think there's been a hugely material change. Obviously, top-tier producers can be expensive, and we think we do a good job of not only working our own team and periodically finding others. We don't talk about it a lot here just because it's a normal part of our business. So we're always looking to add folks that are very good at taking care of customers and help us differentiate our services. Okay. Thanks.
Yeah, it was down down this quarter I'm guessing from from completions but um sort of what's the the growth Outlook there?
yeah, I I
Would say you know, it's it's kind of interesting, you know, Chicago hasn't been a huge construction Market. Um you know, we've seen a little bit but I think there's more upsides.
Speaker #6: of revenue producers
Speaker #6: now?
Speaker #6: now?
Speaker #4: Been a hugely material business. Stronger, as we've talked about. It's a don't cover today. Folks that are trying to open more change. Obviously, top-tier producers, the charters.
And multi family for instance, in in Chicago you know continues to be very strong, some other markets are um you know maybe struggling a little bit more because over Supply. Um, so you know I I actually think, you know, we're
Speaker #4: can be expensive, with premiums rising in addition. And we think we do a good job about timing to refi.
I'm feeling okay about you know where construction activity will be for this coming year.
Great. Thank you.
Thank you.
Speaker #4: lot here just because it's a normal part of our
Speaker #4: business.
Our next question comes from the line of Janet Leigh of TV Cohen, please. Go ahead Janet.
Speaker #4: services. point Tim brings up.
Good afternoon.
Operator: And then just finally, looking at construction down this quarter, any color on the build-out of construction and how that could potentially be funded up as we move through next year or this year? Are you talking about just general construction lending? Yeah. Yeah. It was down this quarter, I'm guessing, from completions. But sort of what's the growth outlook there? Yeah. I would say it's kind of Chicago hasn't been a huge construction market. We've seen a little bit, but I think there's more upside there. I mean, multifamily, for instance, in Chicago continues to be very strong. Some other markets are maybe struggling a little bit more because of oversupply. So I actually think we're feeling okay about where construction activity will be for this coming year. Great. Thank you. Thank you. Our next question comes from the line of Janet Lee of TD Cowen.
Operator: And then just finally, looking at construction down this quarter, any color on the build-out of construction and how that could potentially be funded up as we move through next year or this year? Are you talking about just general construction lending? Yeah. Yeah. It was down this quarter, I'm guessing, from completions. But sort of what's the growth outlook there? Yeah. I would say it's kind of Chicago hasn't been a huge construction market. We've seen a little bit, but I think there's more upside there. I mean, multifamily, for instance, in Chicago continues to be very strong. Some other markets are maybe struggling a little bit more because of oversupply. So I actually think we're feeling okay about where construction activity will be for this coming year. Great. Thank you. Thank you. Our next question comes from the line of Janet Lee of TD Cowen.
Speaker #6: at construction down this
Um not to be on a dead horse but just to clarify on your outlook for resi mortgage and and mortgage. How Warehouse is your mid to high single digit loan growth for 2026 contemplate. Um
Um a level of bullish. Like are you assuming that mortgage rates perhaps step to the 5% handle? Like are you baking in a level of mortgage rate reduction in your
The high single digit Outlook or what were you referring to an additional upside to the the mid to high single-digit loan growth? If if mortgage rates due to below 6%,
um, Janet the assumption would be a slightly improved mortgage Market in line with the mortgage Mortgage Bankers Association projections. Not
Not any dramatic drop in rates and Dave, a couple of minutes ago gave you a little bit of a sense for how much volume you could get if the rates dropped.
Um, but I, I think to get any very, very material lift rates would have to go below 6%.
Operator: Please go ahead, Janet. Good afternoon. Not to be beating a dead horse, but just to clarify on your outlook for residential mortgage and mortgage warehouse, is your mid to high single-digit loan growth for 2026 contemplate a level of bullish? Are you assuming that mortgage rates perhaps dip to the 5% handle? Are you baking in a level of mortgage rate reduction in your mid to high single-digit outlook, or were you referring to an additional upside to the mid to high single-digit loan growth if mortgage rates do dip below 6%? Janet, the assumption would be a slightly improved mortgage market in line with the Mortgage Bankers Association projections, not any dramatic drop in rates. Dave, a couple of minutes ago, gave you a little bit of a sense for how much volume you could get if the rates dropped.
Operator: Please go ahead, Janet. Good afternoon. Not to be beating a dead horse, but just to clarify on your outlook for residential mortgage and mortgage warehouse, is your mid to high single-digit loan growth for 2026 contemplate a level of bullish? Are you assuming that mortgage rates perhaps dip to the 5% handle? Are you baking in a level of mortgage rate reduction in your mid to high single-digit outlook, or were you referring to an additional upside to the mid to high single-digit loan growth if mortgage rates do dip below 6%? Janet, the assumption would be a slightly improved mortgage market in line with the Mortgage Bankers Association projections, not any dramatic drop in rates. Dave, a couple of minutes ago, gave you a little bit of a sense for how much volume you could get if the rates dropped.
Speaker #2: Janet. Good
Got it.
and on your Nim outlook for for stable, I think there's
Speaker #7: for residue mortgage and
room for interpretation, since your characterizing 4 basis, point increase and then this quarter as being
stable your your pretty neutral to to rate that seems and and fix to 60% beta also seems
Solid. Um what are some of the drivers that could put you to either, you know, perhaps increasing net interest, margin through 2020.
Speaker #7: You're referring to an additional now, which—you know, David.
6 and and are you still seeing the phenomena of of seeing some spread compressions on fully funded CRA which you've talked about in the past quarters? Thanks.
Speaker #7: loan growth if mortgage rates
Speaker #7: do dip below I mean,
Speaker #7: 6%? You said you expect mid-Janet, the
Well.
I've talked about,
Competitive pressure.
Usually from um folks that maybe haven't grown as quickly as we have and you know kind of desire to do that. And so I think there still is a fairly competitive environment for fully funded loans. Um
Operator: But I think to get any very, very material lift, rates would have to go below 6%. Got it. And on your NIM outlook for stable, I think there's room for interpretations since you're characterizing four basis points increase in NIM this quarter as being stable. You're pretty neutral to rates, it seems, and 60% beta also seems solid. What are some of the drivers that could put you to either perhaps increasing net interest margin through 2026? And are you still seeing the phenomena of seeing some spread compressions on fully funded CRE, which you've talked about in the past quarters? Thanks. Well, we've talked about competitive pressures largely from folks that maybe haven't grown as quickly as we have and kind of desire to do that. And so I think there still is a fairly competitive environment for fully funded loans.
Operator: But I think to get any very, very material lift, rates would have to go below 6%. Got it. And on your NIM outlook for stable, I think there's room for interpretations since you're characterizing four basis points increase in NIM this quarter as being stable. You're pretty neutral to rates, it seems, and 60% beta also seems solid. What are some of the drivers that could put you to either perhaps increasing net interest margin through 2026? And are you still seeing the phenomena of seeing some spread compressions on fully funded CRE, which you've talked about in the past quarters? Thanks. Well, we've talked about competitive pressures largely from folks that maybe haven't grown as quickly as we have and kind of desire to do that. And so I think there still is a fairly competitive environment for fully funded loans.
But you know, some of that's transaction based and we're really much more focused on relationship-based Arrangements. Um
Speaker #5: 6%.
If, if the competitive environment changed dramatically, you could get some pressure on the margin.
Obviously the first quarter with the a couple fewer days has a math impact on the margin. Um but we're we're actually pretty neutral you know, almost independent of of rate changes and given the visibility to the competitive environment, you know that would be the case there too.
Speaker #7: Of the drivers that could put you to either perhaps increasing net interest margin through 2026, are you still seeing the phenomena of some spread compressions on fully funded CRE, which you've talked about in past quarters?
Thank you.
Thank you.
Our next question comes from the line of Bill heal 22v research. Your line is open bill.
Good morning, guys. Thanks, can, can you just maybe talk through the fixed asset repriced that you're seeing on both the loan and the security side? Kind of where roll-on roll-off yields are, uh, in both books. Thanks
Speaker #4: It's a fairly competitive environment for fully funded loans, but some of that's transaction-based. We're really much more focused on relationship-based arrangements. If the competitive environment changed dramatically, you could get some pressure on the margin.
Yeah, well we we really haven't talked about the rolloff yields on them. We have so very little commercial uh and Commercial Real Estate.
Operator: But some of that's transaction-based, and we're really much more focused on relationship-based arrangements. If the competitive environment changed dramatically, you could get some pressure on the margin. Obviously, Q1 with a couple fewer days has a math impact on the margin. But we're actually pretty neutral, almost independent of rate changes. And given the visibility to the competitive environment, that would be the case there too. Thank you. Thank you. Our next question comes from the line of Bill Haple of 22V Research. Your line is open, Bill. Good morning, guys. Thanks. Can you just maybe talk through the fixed asset reprice that you're seeing on both the loan and the security side, kind of where roll-on, roll-off yields are in both books? Thanks. Yeah. Well, we really haven't talked about the roll-off yields on them.
Operator: But some of that's transaction-based, and we're really much more focused on relationship-based arrangements. If the competitive environment changed dramatically, you could get some pressure on the margin. Obviously, Q1 with a couple fewer days has a math impact on the margin. But we're actually pretty neutral, almost independent of rate changes. And given the visibility to the competitive environment, that would be the case there too. Thank you. Thank you. Our next question comes from the line of Bill Haple of 22V Research. Your line is open, Bill. Good morning, guys. Thanks. Can you just maybe talk through the fixed asset reprice that you're seeing on both the loan and the security side, kind of where roll-on, roll-off yields are in both books? Thanks. Yeah. Well, we really haven't talked about the roll-off yields on them.
Speaker #4: Obviously, the first quarter, with a couple fewer days, has a math impact on the margin. But we're actually pretty neutral, almost independent of rate changes.
Fixed asset repricing. Most of our fixed asset repricing. Comes out of the Premium Finance portfolios. Um, uh, life is, is fixed for a year and and so it would prices once a year. So it takes a full year for that portfolio to reprice.
Speaker #4: And given the visibility to the competitive environment, that would be the case there.
Um, that portfolio is generally 12 months CMT plus 200 basis points. So if you look back a year and see where uh the 12 month CMT was and look at current rates, you can kind of uh,
Speaker #4: too. Thank
Speaker #2: Thank you. Our next question comes from the line of Bill Happel of Q2V Research. Your line is open, Bill.
Calculate that that impact and and Commercial premium finances is generally. Well it's not time to tie the prime but generally has good correlation to the primary and their 9-month. Uh, uh,
Speaker #6: Good morning, guys. Thanks. Can you just maybe talk through the fixed asset reprice that you're seeing on both the loan and the security side?
Loans that are fixed rate that pay monthly so it takes 9 to 10 months for them to generally turn over. So again, if you look back, you know, uh,
Primary was.
Speaker #6: Kind of where roll-on, roll-off yields are in both books. Thanks.
Speaker #5: Yeah. Well, we really haven't talked about the roll-off yields on them. We have two very little commercial and commercial real estate fixed asset repricing.
Operator: We have so very little commercial and commercial real estate fixed asset repricing. Most of our fixed asset repricing comes out of the premium finance portfolios. Life is fixed for a year, and so it reprices once a year. So it takes a full year for that portfolio to reprice. That portfolio is generally 12-month CMT plus 200 basis points. So if you look back a year and see where the 12-month CMT was and look at current rates, you can kind of calculate that impact. And commercial premium finance is generally, well, it's not tied to prime, but generally has good correlation to the prime rate. And there are nine-month loans that are fixed rate that pay monthly. So it takes 9 to 10 months for them to generally turn over.
Operator: We have so very little commercial and commercial real estate fixed asset repricing. Most of our fixed asset repricing comes out of the premium finance portfolios. Life is fixed for a year, and so it reprices once a year. So it takes a full year for that portfolio to reprice. That portfolio is generally 12-month CMT plus 200 basis points. So if you look back a year and see where the 12-month CMT was and look at current rates, you can kind of calculate that impact. And commercial premium finance is generally, well, it's not tied to prime, but generally has good correlation to the prime rate. And there are nine-month loans that are fixed rate that pay monthly. So it takes 9 to 10 months for them to generally turn over.
9 to 12 months ago and look at where they are now. You can, you probably get some good feel for that repricing. The the the commercial portfolio, repriced and securities. Um, is very, it's very little cash flow. So, you know, basis pointing or 2 here, or their impact of nothing material.
Speaker #5: Most of our fixed asset repricing comes out of the premium finance portfolios. Life is fixed for a year, and so it reprices once a year.
Got it. And where, where are you? Adding the Securities that you added uh, and the available for sale book.
Where were those yields coming on? Where were you, purchasing
Speaker #5: So it takes a full year for that portfolio to reprice. That portfolio is generally 12-month CMT plus 200 basis points. So if you look back a year and see where the 12-month CMT was, and look at current rates, you can kind of calculate that impact.
Around the 5% level? Yeah. Hi. Hi 4 is 5. Yeah.
Got it. Okay, thank you very much.
Thank you. I would now like to turn the conference back to Tim crane for closing remarks sir.
Speaker #5: And commercial premium finance is generally—well, it's not time-tied to prime, but generally has good correlation to the prime rate. And they're 9-month loans that are fixed rate that pay monthly.
The phone, we appreciate you joining us and and for your support, um, we start 2026 in a good place. I, I hope we've answered your questions. If not, you know, where to find us and we'll be working hard for all of you and for our shareholders, thank you.
Speaker #5: So it takes 9 to 10 months for them to generally turn over. So again, if you look back at what the prime rate was 9 to 12 months ago and look at where they are now, you can probably get some good feel for that repricing.
Operator: So again, if you look back at what the prime rate was nine to 12 months ago and look at where they are now, you can probably get some good feel for that repricing. The commercial portfolio repricing on securities, it's very little cash flow. So basis point or two here or there, impact of nothing material. Got it. And where are you adding the securities that you added in the available for sale book? Where were those yields coming on? Where were you purchasing? Around the 5% level. Yeah. High fours, five. Yeah. Got it. Okay. Thank you very much. Thank you. I would now like to turn the conference back to Tim Crane for closing remarks, sir. Thank you, Latif. As always, for those of you on the phone, we appreciate you joining us and for your support. We start 2026 in a good place.
Operator: So again, if you look back at what the prime rate was nine to 12 months ago and look at where they are now, you can probably get some good feel for that repricing. The commercial portfolio repricing on securities, it's very little cash flow. So basis point or two here or there, impact of nothing material. Got it. And where are you adding the securities that you added in the available for sale book? Where were those yields coming on? Where were you purchasing? Around the 5% level. Yeah. High fours, five. Yeah. Got it. Okay. Thank you very much. Thank you. I would now like to turn the conference back to Tim Crane for closing remarks, sir. Thank you, Latif. As always, for those of you on the phone, we appreciate you joining us and for your support. We start 2026 in a good place.
This concludes today's conference call, thank you for participating. You may now disconnect
Speaker #5: The commercial portfolio repricing on securities is very little cash flow, so a basis point or two here or there impacts nothing.
Speaker #5: material. Got it.
Speaker #6: And where are you adding the securities that you added in the available-for-sale book? Where were those yields coming on? Where were you purchasing?
Speaker #5: We're on the 5% level.
Speaker #4: Yeah. High four is five.
Speaker #5: Yeah. Got it.
Speaker #6: Okay. Thank you very
Speaker #6: much. Thank you.
Speaker #2: I would now like to turn the conference back to Tim Crane for closing remarks.
Speaker #2: Sir. Thank you, Latif.
Speaker #5: As always, for those of you on the phone, we appreciate you joining us and your support. We start 2026 in a good place.
Speaker #5: I hope we've answered your questions. If not, you know where to find us. And we'll be working hard for all of you and for our shareholders.
Operator: I hope we've answered your questions. If not, you know where to find us. We'll be working hard for all of you and for our shareholders. Thank you. This concludes today's conference call. Thank you for participating. You may now disconnect.
Operator: I hope we've answered your questions. If not, you know where to find us. We'll be working hard for all of you and for our shareholders. Thank you. This concludes today's conference call. Thank you for participating. You may now disconnect.