WINTRUST FINANCIAL CORP
For the period ended Jun 30, 2026. Filed Aug 5, 2026.
View on SEC.govAbout this filing
A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Jun 30, 2026 · Filed Aug 5, 2026
WTFC$151.27-0.3%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2026-03-31; filed 2026-05-06.
0001015328-26-000014
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2026-06-30; filed 2026-08-05.
0001015328-26-000022
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 210 previous paragraphs and 222 current paragraphs.
159 unchanged; 45 reworded; 7 added; 5 removed; 1 previous and 11 current paragraphs rearranged.
Tables are not compared: 28 previous and 33 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (7)
Current report
Second Quarter Highlights
Current report
(7)See “Supplemental Non-GAAP Financial Measures/Ratios” for additional information on this performance measure/ratio.
Current report
Advertising and marketing expense increased for the three and six months ended June 30, 2026 as compared to the same periods in 2025. The increase was primarily driven by summer sports sponsorships and other community sponsorship events along with digital marketing activities during the quarter. Marketing costs are incurred to promote the Company’s brand, commercial banking capabilities and the Company’s various products, to attract loans and deposits and to announce new branch openings as well as the expansion of the Company’s non-bank businesses.
Current report
FDIC insurance expense decreased for the three and six months ended June 30, 2026 compared to the same periods in 2025. The decrease is primarily the result of a reversal of the $5.2 million FDIC special assessment recorded in the first quarter of 2024 in response to certain bank failures in 2023. The reversal is based on the FDIC's final determination of losses to its Deposit Insurance Fund.
Current report
The Company recorded income tax expense of $84.3 million in the second quarter of 2026 compared to $71.6 million in the second quarter of 2025. The effective tax rates were 26.5% in the second quarter of 2026 compared to 26.8% in the second quarter of 2025. During the first six months of 2026, the Company recorded income tax expense of $157.8 million compared to $135.6 million for the first six months of 2025. The effective tax rates were 25.5% for the first six months of 2026 and 26.1% for the first six months of 2025.
Current report
(1)Includes nonaccrual loans.
Current report
(2)June 30, 2025 capital ratios impacted by issuance of Preferred Stock Series F.
Removed paragraphs (5)
Previous report
First Quarter Highlights
Previous report
The Company recognized net losses on investment securities for the three months ended March 31, 2026 of $31,000. The Company recognized net gains on investment securities for the three months ended March 31, 2025 of $3.2 million. The net losses for the three months ended March 31, 2026 were primarily the result of unrealized losses on the Company’s equity investment securities with a readily determinable fair value. See Note (5) “Investment Securities” to the Consolidated Financial Statements in Item 1 of this report for more information on net gains and losses on investment securities.
Previous report
Fees from covered call options for the three months ended March 31, 2026 increased $1.2 million, when compared to the same period in the prior year. The increased income was primarily because the Company sold more options than in the comparative period. The Company has routinely written call options with terms of less than three months against certain U.S. Treasury and agency securities held in its portfolio for liquidity and other purposes. Management has effectively entered into these transactions with the goal of economically hedging security positions and enhancing its overall return on its investment portfolio. These option transactions are designed to increase the total return associated with holding certain investment securities and do not qualify as hedges pursuant to accounting guidance. There were no outstanding call option contracts at March 31, 2026 and 2025.
Previous report
NM - Not meaningful.
Previous report
Professional fees expense decreased for the three months ended March 31, 2026 as compared to the same period in 2025 primarily due to lower consulting fees. Professional fees include legal, audit, and tax fees, external loan review costs, consulting arrangements and normal regulatory exam assessments.
Reworded paragraphs (45)
Previous wording
The following discussion and analysis of the financial condition of Wintrust Financial Corporation and its subsidiaries (collectively, “Wintrust” or the “Company”) as of March 31, 2026 compared with December 31, 2025 and March 31, 2025, and the results of operations for the three month periods ended March 31, 2026 and March 31, 2025, should be read in conjunction with the unaudited consolidated financial statements and notes contained in this report and the risk factors discussed under Item 1A of the Company’s Annual Report on Form 10-K for the year ended December 31, 2025 (“2025 Form 10-K”) and in Part II, Item 1A, of this Form 10-Q. This discussion contains forward-looking statements that involve risks and uncertainties and, as such, future results could differ significantly from management’s current expectations. See the last section of this discussion for further information on forward-looking statements.
Current wording
The following discussion and analysis of the financial condition of Wintrust Financial Corporation and its subsidiaries (collectively, “Wintrust” or the “Company”) as of June 30, 2026 compared with December 31, 2025 and June 30, 2025, and the results of operations for the three and six month periods ended June 30, 2026 and June 30, 2025, should be read in conjunction with the unaudited consolidated financial statements and notes contained in this report and the risk factors discussed under Item 1A of the Company’s Annual Report on Form 10-K for the year ended December 31, 2025 (“2025 Form 10-K”) and in Part II, Item 1A, of this Form 10-Q. This discussion contains forward-looking statements that involve risks and uncertainties and, as such, future results could differ significantly from management’s current expectations. See the last section of this discussion for further information on forward-looking statements.
Previous wording
The Company recorded net income of $227.4 million for the first quarter of 2026 compared to $189.0 million in the first quarter of 2025. The results for the first quarter of 2026 demonstrate increased net interest income due to growth in earning assets as well as the Company’s ability to navigate disruptions in the current economic environment during the period due to the Company’s strong deposit franchise and balanced business model. Partially offsetting the increase in net interest income was an increase in non-interest expense. The increase in non-interest expense was a result of additional expenses to support growth. Comprehensive income includes 1) net income as presented on the Company’s Consolidated Statements of Income and 2) other comprehensive income or loss from unrealized gains and losses on the Company’s available-for-sale investment securities portfolios and derivative contracts designated as cash flow hedges as well as foreign currency translation adjustments. Comprehensive income totaled $156.3 million for the first quarter of 2026 compared to $287.4 million for the first quarter of 2025.
Current wording
Company’s strong deposit franchise and balanced business model. Partially offsetting the increase in net interest income was an increase in non-interest expense. The increase in non-interest expense was a result of additional expenses to support growth. Comprehensive income includes 1) net income as presented on the Company’s Consolidated Statements of Income and 2) other comprehensive income or loss from unrealized gains and losses on the Company’s available-for-sale investment securities portfolios and derivative contracts designated as cash flow hedges as well as foreign currency translation adjustments. Comprehensive income totaled $179.7 million for the second quarter of 2026 compared to $239.3 million for the second quarter of 2025.
Previous wording
The Company increased its loan portfolio from $48.7 billion at March 31, 2025 and $53.1 billion at December 31, 2025 to $54.1 billion at March 31, 2026. The increase in the current period compared to the prior periods was a result of growth in several portfolios, including the commercial, commercial real estate, and residential real estate loans held for investment portfolios. For more information regarding changes in the Company’s loan portfolio, see Financial Condition – Interest Earning Assets and Note (6) “Loans” of the Consolidated Financial Statements in Item 1 of this report.
Current wording
The Company increased its loan portfolio from $51.0 billion at June 30, 2025 and $53.1 billion at December 31, 2025 to $55.7 billion at June 30, 2026. The increase in the current period compared to the prior periods was a result of growth across all major loan categories. For more information regarding changes in the Company’s loan portfolio, see Financial Condition – Interest Earning Assets and Note (6) “Loans” of the Consolidated Financial Statements in Item 1 of this report.
Previous wording
The Company recorded net interest income of $579.0 million in the first quarter of 2026 compared to $526.5 million in the first quarter of 2025. This increase in net interest income recorded in the first quarter of 2026 compared to the first quarter of 2025 resulted primarily from growth in earning assets, specifically a $5.0 billion increase in average loans. Net interest margin held steady at 3.54% (3.56% on a fully taxable-equivalent basis, non-GAAP) in the first quarter of 2026 and 2025 (see “Net Interest Income” for further detail).
Current wording
The Company recorded net interest income of $597.4 million in the second quarter of 2026 compared to $546.7 million in the second quarter of 2025. This increase in net interest income recorded in the second quarter of 2026 compared to the second quarter of 2025 resulted primarily from growth in earning assets, specifically a $5.0 billion increase in average loans. Net interest margin was 3.50% (3.52% on a fully taxable-equivalent basis, non-GAAP) in the second quarter of 2026 compared to 3.52% (3.54% on a fully taxable-equivalent basis, non-GAAP) in the second quarter of 2025. The decrease in net interest margin is primarily due to lower loan yields (see “Net Interest Income” for further detail).
Previous wording
Non-interest income totaled $134.1 million in the first quarter of 2026 compared to $116.6 million in the first quarter of 2025. The increase is primarily due to an increase in wealth management revenue of $8.0 million, an increase in operating lease income of $3.9 million, and an increase in mortgage banking revenue of $2.9 million in the first quarter of 2026 compared to the first quarter of 2025. This was partially offset by net losses on investment securities of $31,000 compared to approximately $3.2 million in net gains recognized in the first quarter of 2025 (see “Non-Interest Income” for further detail).
Current wording
Non-interest income totaled $141.3 million in the second quarter of 2026 compared to $124.1 million in the second quarter of 2025. The increase is primarily due to an increase in mortgage banking revenue of $4.3 million, an increase in operating lease income of $3.6 million, and an increase in wealth management revenue of $3.1 million in the second quarter of 2026 compared to the second quarter of 2025. This was partially offset by decreased fees from covered call options in the second quarter of 2026 compared to the second quarter of 2025 (see “Non-Interest Income” for further detail).
Previous wording
Non-interest expense totaled $382.6 million in the first quarter of 2026, an increase of $16.5 million, or 5%, compared to the first quarter of 2025. This increase compared to the first quarter of 2025 was primarily attributable to increased salaries and employee benefits of $16.9 million (see “Non-Interest Expense” for further detail).
Current wording
Non-interest expense totaled $397.5 million in the second quarter of 2026, an increase of $16.1 million, or 4%, compared to the second quarter of 2025. This increase compared to the second quarter of 2025 was primarily attributable to increased salaries and employee benefits of $14.5 million (see “Non-Interest Expense” for further detail).
Previous wording
Company with adequate liquidity for its ongoing operations. In this regard, the Company benefited from its strong deposit base, a liquid investment portfolio and its access to funding from a variety of external funding sources. See “Shareholders’ Equity”, “Deposits” and “Other Funding Sources” for additional information regarding liquidity sources.
Current wording
Management considers the maintenance of adequate liquidity to be important to the management of risk. Accordingly, during the second quarter of 2026, the Company continued its practice of maintaining appropriate funding capacity to provide the Company with adequate liquidity for its ongoing operations. In this regard, the Company benefited from its strong deposit base, a liquid investment portfolio and its access to funding from a variety of external funding sources. See “Shareholders’ Equity”, “Deposits” and “Other Funding Sources” for additional information regarding liquidity sources.
Previous wording
The Company’s key operating measures and growth rates for the three months ended March 31, 2026, as compared to the same period last year, are shown below:
Current wording
The Company’s key operating measures and growth rates for the three and six months ended June 30, 2026, as compared to the same periods last year, are shown below:
Previous wording
The allowance for credit losses represents management’s estimate of expected credit losses over the life of a financial asset carried at amortized cost. Determining the amount of the allowance for credit losses is considered a critical accounting estimate because it requires significant judgment and includes the use of estimates related to the fair value of the underlying collateral and amount and timing of expected future cash flows on individually assessed financial assets, estimated credit losses on pools of loans with similar risk characteristics, and consideration of reasonable and supportable forecasts of macroeconomic conditions, all of which are susceptible to significant change. At March 31, 2026, the loan and held-to-maturity debt securities portfolios represent 79% of total assets on the Company’s consolidated balance sheet. The Company also maintains an allowance for lending-related commitments, specifically unfunded loan commitments and letters of credit, which relates to certain amounts the Company is committed to lend (not unconditionally cancelable) but for which funds have not yet been disbursed.
Current wording
The allowance for credit losses represents management’s estimate of expected credit losses over the life of a financial asset carried at amortized cost. Determining the amount of the allowance for credit losses is considered a critical accounting estimate because it requires significant judgment and includes the use of estimates related to the fair value of the underlying collateral and amount and timing of expected future cash flows on individually assessed financial assets, estimated credit losses on pools of loans with similar risk characteristics, and consideration of reasonable and supportable forecasts of macroeconomic conditions, all of which are susceptible to significant change. Management also applies judgment in developing qualitative adjustments to reflect elements of credit risk that are not fully captured in the quantitative loss models. The Company also maintains an allowance for lending-related commitments, specifically unfunded loan commitments and letters of credit, which relates to certain amounts the Company is committed to lend (not unconditionally cancelable) but for which funds have not yet been disbursed. At June 30, 2026, the loan and held-to-maturity debt securities portfolios represent 79% of total assets on the Company’s consolidated balance sheet.
Previous wording
Key macroeconomic variable data points that are significant inputs into our credit loss models for the commercial and commercial real estate portfolios are the Baa corporate credit spread, the Dow Jones Total Stock Market Index for the commercial portfolio, and the Commercial Real Estate Pricing Index ("CREPI") related to the commercial real estate portfolio. Holding all other inputs constant, the table below shows the impact of changes in these key macroeconomic variable data points on the estimate of allowance for credit losses.
Current wording
Key macroeconomic variable data points that are significant inputs into our credit loss models for the commercial and commercial real estate portfolios are the Baa corporate credit spread, the Dow Jones Total Stock Market Index for the commercial portfolio, and the Commercial Real Estate Price Index ("CREPI") related to the commercial real estate portfolio. Holding all other inputs constant, the table below shows the impact of changes in these key macroeconomic variable data points on the estimate of allowance for credit losses.
Previous wording
Net income for the quarter ended March 31, 2026 totaled $227.4 million, an increase of $38.3 million, or 20%, compared to the quarter ended March 31, 2025. On a per share basis, net income for the first quarter of 2026 totaled $3.22 per diluted common share compared to $2.69 for the first quarter of 2025.
Current wording
Net income for the quarter ended June 30, 2026 totaled $233.7 million, an increase of $38.2 million, or 20%, compared to the quarter ended June 30, 2025. On a per share basis, net income for the second quarter of 2026 totaled $3.30 per diluted common share compared to $2.78 for the second quarter of 2025.
Previous wording
The increase in net income for the first quarter of 2026 as compared to the same period in the prior year is primarily attributable to increased net interest income and an increase in non-interest income, partially offset by increased non-interest expense primarily due to increased salary and employee benefits expenses. See “Net Interest Income,” “Non-interest Income,” “Non-interest Expense” and “Credit Quality” for further detail.
Current wording
The increase in net income for the second quarter of 2026 as compared to the same period in the prior year is primarily attributable to increased net interest income and an increase in non-interest income, partially offset by increased non-interest expense primarily due to increased salary and employee benefits expenses. See “Net Interest Income,” “Non-interest Income,” “Non-interest Expense” and “Credit Quality” for further detail.
Previous wording
The following table presents a summary of the Company’s average balances, net interest income and related net interest margins, including a calculation on a fully taxable-equivalent basis, for the first quarter of 2026 as compared to the fourth quarter of 2025 (sequential quarters) and first quarter of 2025 (linked quarters):
Current wording
The following table presents a summary of the Company’s average balances, net interest income and related net interest margins, including a calculation on a fully taxable-equivalent basis, for the second quarter of 2026 as compared to the first quarter of 2026 (sequential quarters) and second quarter of 2025 (linked quarters):
Previous wording
(3)Interest income on tax-advantaged loans, trading securities and investment securities reflects a tax-equivalent adjustment based on the marginal federal corporate tax rate in effect as of the applicable period. The total adjustments for the three months ended March 31, 2026, December 31, 2025 and March 31, 2025 were $2.6 million, $2.8 million and $2.9 million, respectively.
Current wording
(3)Interest income on tax-advantaged loans, trading securities and investment securities reflects a tax-equivalent adjustment based on the marginal federal corporate tax rate in effect as of the applicable period. The total adjustments for the three months ended June 30, 2026, March 31, 2026 and June 30, 2025 were $2.7 million, $2.6 million and $2.9 million, respectively.
Previous wording
For the first quarter of 2026, net interest income totaled $579.0 million, a decrease of $4.9 million as compared to the fourth quarter of 2025, and an increase of $52.6 million as compared to the first quarter of 2025. Net interest margin was 3.54% (3.56% on a FTE basis, non-GAAP) during the first quarter of 2026 compared to 3.52% (3.54% on a FTE basis, non-GAAP) during the fourth quarter of 2025, and 3.54% (3.56% on a FTE basis, non-GAAP) during the first quarter of 2025.
Current wording
For the second quarter of 2026, net interest income totaled $597.4 million, an increase of $18.3 million as compared to the first quarter of 2026, and an increase of $50.7 million as compared to the second quarter of 2025. Net interest margin was 3.50% (3.52% on a FTE basis, non-GAAP) during the second quarter of 2026 compared to 3.54% (3.56% on a FTE basis, non-GAAP) during the first quarter of 2026, and 3.52% (3.54% on a FTE basis, non-GAAP) during the second quarter of 2025.
Previous wording
(8)See “Supplemental Non-GAAP Financial Measures/Ratios” for additional information on this performance measure/ratio.
Current wording
(8)See “Supplemental Non-GAAP Financial Measures/Ratios” for additional information on this performance ratio.
Previous wording
The following table presents an analysis of the changes in the Company’s net interest income on a FTE basis (non-GAAP) comparing the three month period ended March 31, 2026 to each of the three month periods ended December 31, 2025 and March 31, 2025. The reconciliations set forth the changes in the net interest income on a FTE basis (non-GAAP) as a result of changes in volumes, changes in rates and differing number of days in each period:
Current wording
The following table presents an analysis of the changes in the Company’s net interest income on a FTE basis (non-GAAP) comparing the three month period ended June 30, 2026 to each of the three month periods ended March 31, 2026 and June 30, 2025 and six month periods ended June 30, 2026 and 2025. The reconciliations set forth the changes in the net interest income on a FTE basis (non-GAAP) as a result of changes in volumes, changes in rates and differing number of days in each period:
Previous wording
Mortgage banking revenue increased for the three months ended March 31, 2026 as compared to the same period in 2025 due primarily to higher production revenue. Mortgage banking revenue includes revenue from activities related to originating, selling and servicing residential real estate loans for the secondary market. A main factor in the mortgage banking revenue recognized by the Company is the volume of mortgage loans originated or purchased for sale and the related production margins. Mortgage loans originated for sale totaled $594.0 million in the first quarter of 2026 as compared to $460.5 million in the first quarter of 2025. The increase in quarterly origination volume was driven primarily by a favorable rate environment and modest improvements in housing supply relative to the prior year. Mortgage rates in early 2026 remained below year-ago levels despite intra-quarter volatility, contributing to improved borrower demand and higher level of refinancing activity. The percentage of origination volume from refinancing activities was 48% for the three months ended March 31, 2026, as compared to 23% for the same period in 2025.
Current wording
Mortgage banking revenue increased for the three months ended June 30, 2026 compared to the same period in 2025, primarily driven by favorable MSR fair value adjustments and higher MSR capitalization, partially offset by lower hedge performance. The quarter-over-quarter improvement reflects favorable impact of interest rate movements on MSR valuations. On a year-to-date basis, mortgage banking revenue increased for the six months ended June 30, 2026 as compared to the same period in 2025, primarily due to higher MSR fair value adjustments, increased MSR capitalization, and stronger production revenue, partially offset by lower hedge performance and unfavorable EBO FV changes. Mortgage banking revenue includes revenue from activities related to originating, selling and servicing residential real estate loans for the secondary market. A main factor in the mortgage banking revenue recognized by the Company is the volume of mortgage loans originated or purchased for sale and the related production margins. Mortgage loans originated for sale totaled $835.0 million in the second quarter of 2026 as compared to $681.5 million in the second quarter of 2025. On a year-to-date basis, mortgage loans originated for sale totaled $1.4 billion for the six months ended June 30, 2026 as compared to $1.1 billion for six months ended June 30, 2025. The percentage of origination volume from refinancing activities was 26% and 35% for the three and six months ended June 30, 2026, as compared to 26% and 25% for the same periods in 2025, respectively.
Previous wording
The Company records MSRs at fair value on a recurring basis. For the three months ended March 31, 2026, the fair value of the MSRs portfolio slightly increased by $253,000, reflecting $6.4 million of capitalization from newly retained servicing rights and a fair value adjustment of $460,000, largely offset by $6.6 million of reductions due to payoffs, paydowns and repurchases of the existing portfolio. See Note (9) “Mortgage Servicing Rights (“MSRs”)” to the Consolidated Financial Statements in Item 1 of this report for a summary of the changes in the carrying value of MSRs.
Current wording
The Company records MSRs at fair value on a recurring basis. The fair value of the MSRs portfolio net increase for the three months ended June 30, 2026 was a result of thecapitalization of$8.7 million of retained servicing rights and a favorable fair value adjustment of $4.4 million. This was partially offset by a reduction in value of $6.5 million due to payoffs, paydowns and repurchases of the existing portfolio. The fair value of the MSRs portfolio net increase for the six months ended June 30, 2026 was a result of the capitalization of $15.2 million of retained servicing rights and a favorable fair value adjustment of$4.8 million. This was partially offset by a reduction in value of $13.1 million due to payoffs and paydowns and repurchases of the existing portfolio. See Note (9) “Mortgage Servicing Rights (“MSRs”)” to the Consolidated Financial Statements in Item 1 of this report for a summary of the changes in the carrying value of MSRs.
Previous wording
Mortgage banking revenue is also impacted by changes in the fair value of derivative contracts held to economically hedge a portion of the fair value adjustments related to the Company’s MSRs portfolio. The change in fair value of the derivative contracts held as an economic hedge was an unfavorable $900,000 for the three months ended March 31, 2026 compared to a favorable $4.9 million for the three months ended March 31, 2025.
Current wording
Mortgage banking revenue is also impacted by changes in the fair value of derivative contracts held to economically hedge a portion of the fair value adjustments related to the Company’s MSRs portfolio. The change in fair value of the derivative contracts held as an economic hedge was an unfavorable $3.4 million and $4.3 million for the three and six months ended June 30, 2026 compared to a favorable $2.5 million and $7.4 million for the three and six months ended June 30, 2025.
Previous wording
Wealth management revenue increased by $8.0 million in the first quarter of 2026 as compared to the same period of 2025 primarily due to increased trust and asset management revenue. Wealth management revenue is comprised of the trust and asset management revenue of Wintrust Private Trust Company and Great Lakes Advisors, the brokerage commissions, managed money fees and insurance product commissions at Wintrust Investments and fees from tax-deferred like-kind exchange services provided by the Chicago Deferred Exchange Company.
Current wording
Wealth management revenue increased for the three and six months ended June 30, 2026 compared to the same periods in 2025, primarily due to trust and asset management revenue. Wealth management revenue is comprised of the trust and asset management revenue of Wintrust Private Trust Company and Great Lakes Advisors, the brokerage commissions, managed money fees and insurance product commissions at Wintrust Investments and fees from tax-deferred like-kind exchange services provided by the Chicago Deferred Exchange Company.
Previous wording
Service charges on deposits increased for the three months ended March 31, 2026 as compared to the same period in 2025 primarily as a result of increased commercial account analysis service fees. Service charges on deposit accounts include fees charged to deposit customers for various services, including account analysis services, and are based on factors such as the size and type of customer, type of product and number of transactions. The fees are based on a standard schedule of fees and, depending on the nature of the service performed, the service is performed at a point in time or over a period of a month.
Current wording
Service charges on deposits increased for the three and six months ended June 30, 2026 as compared to the same periods in 2025 primarily as a result of increased account analysis service fees. Service charges on deposit accounts include fees charged to deposit customers for various services, including account analysis services, and are based on factors such as the size and type of customer, type of product and number of transactions. The fees are based on a standard schedule of fees and, depending on the nature of the service performed, the service is performed at a point in time or over a period of a month.
Previous wording
Operating lease income increased in the first quarter of 2026 as a result of additional lease rental income due to growth in leased assets as compared to the first quarter of 2025.
Current wording
Operating lease income increased for the three and six months ended June 30, 2026 compared to the same periods in 2025, primarily due to gains on sale of leased assets and additional lease rental income due to growth in leased assets as compared to the second quarter of 2025.
Previous wording
Miscellaneous non-interest income includes loan servicing fees, income from other investments, and other fees. This category of income increased $1.7 million for the three months ended March 31, 2026 compared to the same period in 2025. For the three months ended March 31, 2026, miscellaneous income increased compared to the same period in 2025 primarily due to higher fees earned on card-related arrangements, letters of credit and syndication fees.
Current wording
Miscellaneous non-interest income increased $3.4 million and $5.1 million for the three and six months ended June 30, 2026, respectively, compared to the same periods in 2025. The increase was primarily due to gains on sale of assets, higher fees earned on card-related arrangements, letters of credit and syndications fees.
Previous wording
Salaries and employee benefits expense increased for the three months ended March 31, 2026 as compared to the same period in 2025. The increase was primarily due to annual merit increases and higher health insurance costs.
Current wording
Salaries and employee benefits expense increased for the three and six months ended June 30, 2026 as compared to the same periods in 2025. The increase was primarily due to annual merit increases and higher commission fees related to an increase in mortgage originations.
Previous wording
Software and equipment expense increased for the three months ended March 31, 2026 as compared to the same period in 2025 as a result of higher software license fees as well as higher computer and software depreciation expense as the Company invests in enhancements to the digital customer experience, upgrades to infrastructure and enhancements to information security capabilities. Software and equipment expense includes furniture, equipment and computer software, depreciation, and repairs and maintenance costs.
Current wording
Software and equipment expense increased for the three and six months ended June 30, 2026 as compared to the same periods in 2025 as a result of higher software license fees as the Company invests in enhancements to the digital customer experience, upgrades to infrastructure and enhancements to information security capabilities. Software and equipment expense includes furniture, equipment and computer software, depreciation, and repairs and maintenance costs.
Previous wording
The Company recorded income tax expense of $73.6 million in the first quarter of 2026 compared to $64.0 million in the first quarter of 2025. The effective tax rates were 24.4% in the first quarter of 2026 compared to 25.3% in the first quarter of 2025. The effective tax rates were partially impacted by the tax effects related to share-based compensation which fluctuate based on the Company’s stock price and timing of employee stock option exercises and vesting of other shared-based awards. The Company recorded net excess tax benefits of $6.6 million in the first quarter of 2026, compared to net excess tax benefits of $3.7 million in the first quarter of 2025 related to share-based compensation.
Current wording
The effective tax rates were partially impacted by the tax effects related to share-based compensation which fluctuate based on the Company’s stock price and timing of employee stock option exercises and vesting of other shared-based awards. The Company recorded net excess tax benefits of $6.8 million in the first six months of 2026, compared to net excess tax benefits of $3.7 million in the first six months of 2025 related to share-based compensation, the majority of which was recognized in the first quarter of each year.
Previous wording
The community banking segment’s net interest income for the quarter ended March 31, 2026 totaled $450.6 million as compared to $419.0 million for the same period in 2025, an increase of $31.6 million, or 8%. The increase in the three month period was primarily attributable to growth in average earning assets coupled with a relatively stable net interest margin. The community banking segment’s non-interest income totaled $77.9 million in the first quarter of 2026, an increase of $4.4 million, or 6%, when compared to the first quarter of 2025 total of $73.5 million. The increase in the three month period was primarily the result of an increase in mortgage banking revenue offset by an increase in losses recognized on investment securities. The community banking segment recorded provision for credit losses of $27.3 million for the three months ended March 31, 2026, compared to $22.4 million for the same period in 2025. The increase in provision for credit losses for the three month period was primarily the result of uncertainty within the macroeconomic forecast related to Baa corporate credit spread coupled with loan growth and higher net charge-offs. Non-interest expenses increased by $9.0 million for the three months ended March 31, 2026 compared to the same period in 2025, primarily due to an increase in salaries, commissions, and incentive compensation. The community banking segment’s net income for the quarter ended March 31, 2026 totaled $150.5 million, an increase of $16.3 million as compared to net income in the first quarter of 2025 of $134.3 million.
Current wording
The community banking segment’s net interest income for the quarter ended June 30, 2026 totaled $470.5 million as compared to $436.7 million for the same period in 2025, an increase of $33.8 million, or 8%. On a year-to-date basis, net interest income for the segment increased by $65.4 million from $855.7 million for the six months ended June 30, 2025 to $921.0 million for the six months ended June 30, 2026. The increase in the three and six month periods was primarily attributable to growth in average earning assets. The community banking segment’s non-interest income totaled $86.6 million in the second quarter of 2026, an increase of $11.1 million, or 15%, when compared to the second quarter of 2025 total of $75.5 million. On a year-to-date basis, non-interest income totaled$164.5 million for thesix months ended June 30, 2026, anincrease of$15.5 million, or 10%, compared to$149.0 million for thesix months ended June 30, 2025. The increase in the three and six month periods was primarily the result of an increase in mortgage banking revenue, service charges on deposit accounts, and operating lease income. The community banking segment recorded provision for credit losses of $21.4 million and $48.7 million, respectively, for the three and six months ended June 30, 2026, compared to $20.5 million and $42.9 million, respectively, for the same periods in 2025. The increase in provision for credit losses for the three and six month periods was primarily the result of uncertainty within the macroeconomic forecast related to credit spreads and equity market valuations, coupled with loan growth. Non-interest expenses increased by $7.9 million and $16.9 million, respectively, for the three and six months ended June 30, 2026 compared to the same periods in 2025, primarily due to an increase in salaries, commissions, and incentive compensation. The community banking segment’s net income for the quarter ended June 30, 2026 totaled $161.4 million, an increase of $22.3 million as compared to net income in the second quarter of 2025 of $139.1 million. On a year-to-date basis, the net income of the community banking segment for the six months ended June 30, 2026 totaled $312.0 million as compared to $273.4 million for the six months ended June 30, 2025.
Previous wording
The specialty finance segment’s net interest income totaled $107.1 million for the quarter ended March 31, 2026, compared to $91.3 million for the same period in 2025, an increase of $15.8 million, or 17%. The increase for the three month period was primarily due to loan growth. The specialty finance segment’s provision for credit losses totaled $2.3 million for the three months ended March 31, 2026 compared to $1.5 million for the same period in 2025. The increase in provision for credit losses for the three month period was primarily the result of slightly higher net charge-offs within premium finance receivables coupled with uncertainty within the macroeconomic forecast related to Baa corporate credit spread, which impacted lease financing. The specialty finance segment’s non-interest income increased to $35.7 million from $31.0 million for the three months ended March 31, 2026 and 2025, respectively. Non-interest expenses increased by $6.2 million for the three months ended March 31, 2026 compared to the same period in 2025, primarily because of annual employee compensation increases and discretionary bonuses. Our property and casualty insurance premium finance operations, life insurance finance operations, lease financing operations and other specialty finance operations accounted for 40%, 26%, 24% and 10%, respectively, of the net revenues of our specialty finance business for the three month period ended March 31, 2026. The net income of the specialty finance segment for the quarter ended March 31, 2026 totaled $63.1 million as compared to $50.3 million for the quarter ended March 31, 2025.
Current wording
The specialty finance segment’s net interest income totaled $104.8 million for the quarter ended June 30, 2026, compared to $92.3 million for the same period in 2025, an increase of $12.5 million, or 14%. On a year-to-date basis, net interest income for the segment increased $28.3 million, or 15% compared to the same period in 2025. The increase for the three and six month periods was primarily due to loan growth. The specialty finance segment’s provision for credit losses totaled $1.8 million and $4.1 million, respectively, for the three and six months ended June 30, 2026 compared to $1.8 million and $3.3 million, respectively, for the same periods in 2025. The provision for credit losses for the three and six month periods was primarily the result of loan growth coupled with uncertainty within the macroeconomic forecast related to credit spreads and equity market valuations, which impacted lease financing. The specialty finance segment’s non-interest income increased to $36.6 million from $33.5 million for the three months ended June 30, 2026 and 2025, respectively, and stood at $72.3 million and $64.6 million for the six months ended June 30, 2026 and 2025, respectively. Non-interest expenses increased by $6.3 million and $12.5 million, respectively, for the three and six months ended June 30, 2026 compared to the same periods in 2025, primarily because of an increase in salaries, commissions, and incentive compensation. Our property and casualty insurance premium finance operations, life insurance finance operations, lease financing operations and other specialty finance operations accounted for 40%, 25%, 24% and 11%, respectively, of the net revenues of our specialty finance business for the six month period ended June 30, 2026. The net income of the specialty finance segment for the quarter ended June 30, 2026 totaled $60.5 million as compared to $48.8 million for the quarter ended June 30, 2025. On a year-to-date basis, the net income of the specialty finance segment for the six months ended June 30, 2026 totaled $123.6 million as compared to $99.1 million for the six months ended June 30, 2025.
Previous wording
The wealth management segment reported net interest income of $10.3 million for the first quarter of 2026 compared to $5.4 million in the same quarter of 2025, an increase of $5.0 million. Net interest income for this segment is primarily comprised of an allocation of net interest income earned by the community banking segment on non-interest-bearing and interest-bearing wealth management customer account balances on deposit at the banks. Wealth management customer account balances on deposit at the banks averaged $1.9 billion and $1.6 billion in the first three months of 2026 and 2025, respectively. This segment recorded non-interest income of $43.3 million for the first quarter of 2026 compared to $33.8 million for the first quarter of 2025. The increase in the three month period was primarily due to higher trust and asset management revenue driven by an increase in asset valuations. On a quarter-to-date basis, non-interest expense remained relatively stable for the three month period ended March 31, 2026 compared to the same period in 2025. Distribution of wealth management services through each bank continues to be a focus of the Company. The Company is committed to growing the wealth management segment in order to better service its customers and create a more diversified revenue stream. The wealth management segment’s net income totaled $13.8 million for the first quarter of 2026 compared to $4.5 million for the first quarter of 2025.
Current wording
The wealth management segment reported net interest income of $8.8 million for the second quarter of 2026 compared to $4.8 million in the same quarter of 2025, an increase of $3.9 million. On a year-to-date basis, net interest income totaled $19.1 million for the first six months of 2026, as compared to $10.2 million for the first six months of 2025. Net interest income for this segment is primarily comprised of an allocation of net interest income earned by the community banking segment on non-interest-bearing and interest-bearing wealth management customer account balances on deposit at the banks. This segment recorded non-interest income of $43.4 million for the second quarter of 2026 compared to $39.5 million for the second quarter of 2025. On a year-to-date basis, this segment recorded non-interest income of $86.7 million for the first six months of 2026 as compared to $73.3 million for the first six months of 2025. The increase for the three and six month periods is primarily a result of increased brokerage and asset management fees. For the three and six months ended June 30, 2026, non-interest expense remained relatively stable compared to the same periods in 2025. Distribution of wealth management services through each bank continues to be a focus of the Company. The Company is committed to growing the wealth management segment in order to better service its customers and create a more diversified revenue stream. The wealth management segment’s net income totaled $11.8 million for the second quarter of 2026 compared to $7.6 million for the second quarter of 2025. On a year-to-date basis, the wealth management segment’s net income totaled $25.6 million and $12.1 million for the six month period ended June 30, 2026 and 2025, respectively.
Previous wording
Total assets were $72.2 billion at March 31, 2026, representing an increase of $6.3 billion, or 10%, when compared to March 31, 2025 and an increase of approximately $1.0 billion, or 6% on an annualized basis, when compared to December 31, 2025. Total funding, which includes deposits, all notes and advances, including secured borrowings and the junior subordinated debentures, was $63.3 billion at March 31, 2026, $62.2 billion at December 31, 2025, and $57.8 billion at March 31, 2025. See Notes (5), (6), (10), (11) and (12) of the Consolidated Financial Statements presented under Item 1 of this report for additional period-end detail on the Company’s interest-earning assets and funding liabilities.
Current wording
Total assets were $74.7 billion at June 30, 2026, representing an increase of $5.7 billion, or 8%, when compared to June 30, 2025 and an increase of approximately $2.5 billion, or 14% on an annualized basis, when compared to March 31, 2026. Total funding, which includes deposits, all notes and advances, including secured borrowings and the junior subordinated debentures, was $65.5 billion at June 30, 2026, $63.3 billion at March 31, 2026, and $60.1 billion at June 30, 2025. See Notes (5), (6), (10), (11) and (12) of the Consolidated Financial Statements presented under Item 1 of this report for additional period-end detail on the Company’s interest-earning assets and funding liabilities.
Previous wording
Mortgage loans held-for-sale. Mortgage loans held-for-sale represents such loans awaiting subsequent sale in the secondary market with such sales eliminating the interest-rate risk associated with these loans, as they are predominantly long-term fixed rate loans, and provide a source of non-interest revenue. The decrease in the average balance for the first quarter of 2026 as compared to the sequential period is primarily due to lower mortgage originations for sale.
Current wording
Mortgage loans held-for-sale. Mortgage loans held-for-sale represents such loans awaiting subsequent sale in the secondary market with such sales eliminating the interest-rate risk associated with these loans, as they are predominantly long-term fixed rate loans, and provide a source of non-interest revenue. The increase in the average balance for the second quarter of 2026 as compared to the sequential period is primarily due to higher mortgage originations for sale.
Previous wording
Loans, net of unearned income. Growth realized in the combined commercial and commercial real estate loan categories for the first quarter of 2026 as compared to the sequential and prior year periods is primarily attributable to increased business development efforts. The aggregate balances of these loan categories comprised 59% in the first quarter of 2026, 58% in the fourth quarter of 2025 and 59% of the average loan portfolio in the first quarter of 2025.
Current wording
Loans, net of unearned income. Growth realized in the combined commercial and commercial real estate loan categories for the second quarter of 2026 as compared to the sequential and prior year periods is primarily attributable to increased business development efforts. The aggregate balances of these loan categories comprised 59% of the average loan portfolio in the second quarter of 2026, first quarter of 2026 and second quarter of 2025.
Previous wording
Residential real estate loans averaged $4.3 billion in the first quarter of 2026, and increased $745.5 million, or 21%, from the average balance of $3.5 billion in the same period of 2025. Additionally, compared to the quarter ended December 31, 2025, the average balance increased $147.5 million, or 14% on an annualized basis. Growth is due to the Company continuing to originate non-agency mortgages that are held-for-investment.
Current wording
Residential real estate loans averaged $4.4 billion in the second quarter of 2026, and increased $713.2 million, or 19%, from the average balance of $3.7 billion in the same period of 2025. Additionally, compared to the quarter ended March 31, 2026, the average balance increased $126.4 million, or 12% on an annualized basis. Growth is due to the Company continuing to originate non-agency mortgages that are held-for-investment.
Previous wording
The increase in the premium finance receivables during the first quarter of 2026 compared to the first quarter of 2025 was the result of effective marketing and customer servicing. Approximately $5.1 billion of premium finance receivables were originated in the first quarter of 2026 compared to $4.8 billion during the same period of 2025. Premium finance receivables consist of a property and casualty portfolio and a life portfolio comprising approximately 47% and 53%, respectively, of the average total balance of premium finance receivables for the first quarter of 2026, and 47% and 53%, respectively, for the first quarter of 2025.
Current wording
The increase in the premium finance receivables during the second quarter of 2026 compared to the second quarter of 2025 was the result of effective marketing and customer servicing. Approximately $5.8 billion of premium finance receivables were originated in the second quarter of 2026 compared to $6.1 billion during the same period of 2025. Premium finance receivables consist of a property and casualty portfolio and a life portfolio comprising approximately 47% and 53%, respectively, of the average total balance of premium finance receivables for the second quarter of 2026, and 48% and 52%, respectively, for the second quarter of 2025.
Previous wording
(1)Excludes cash flow hedges with future effective starting dates and those that have matured as of March 31, 2026. The $5.90 billion of cash flow hedging derivatives includes receive fixed swaps, collars and floors of which $4.95 billion were impacting the cash flows of loans indexed to one-month SOFR as of March 31, 2026.
Current wording
(1)Excludes cash flow hedges with future effective starting dates and those that have matured as of June 30, 2026. The $6.90 billion of cash flow hedging derivatives includes receive fixed swaps, collars and floors of which $5.95 billion were impacting the cash flows of loans indexed to one-month SOFR as of June 30, 2026.
Previous wording
(2) SOFR - Secured Overnight Financing Rate.
Current wording
(2)SOFR - Secured Overnight Financing Rate.
Previous wording
(3) CMT - Constant Maturity Treasury Rate.
Current wording
(3)CMT - Constant Maturity Treasury Rate.
Previous wording
We make commercial loans for many purposes, including working capital lines, which are generally renewable annually and supported by business assets, personal guarantees and additional collateral. Such loans may vary in size based on customer need. As a result of growth and impacts related to uncertainty regarding future economic performance, the Company’s commercial loan portfolio allowance for credit losses increased to $211.0 million as of March 31, 2026 compared to $201.2 million as of March 31, 2025.
Current wording
We make commercial loans for many purposes, including working capital lines, which are generally renewable annually and supported by business assets, personal guarantees and additional collateral. Such loans may vary in size based on customer need. As a result of growth and impacts related to uncertainty regarding future economic performance, the Company’s commercial loan portfolio allowance for credit losses increased to $234.8 million as of June 30, 2026 compared to $194.6 million as of June 30, 2025.
Previous wording
Our commercial real estate loans are generally secured by a first mortgage lien and assignment of rents on the property. Since most of our bank branches are located in the Chicago metropolitan area, southern Wisconsin and west Michigan, 63.3% of our commercial real estate loan portfolio is located in this region as of March 31, 2026. We have been able to effectively manage our total non-performing commercial real estate loans, aided by our credit management process. As of March 31, 2026, our allowance for credit losses related to this portfolio was $224.9 million compared to $210.0 million as of March 31, 2025. Theincrease in the allowance for credit losses is primarily a result of growth in the portfolio and impacts related to uncertainty regarding future economic performance. The table below sets forth the commercial real estate loans by property type and owner vs. non-owner occupied.
Current wording
Our commercial real estate loans are generally secured by a first mortgage lien and assignment of rents on the property. Since most of our bank branches are located in the Chicago metropolitan area, southern Wisconsin and west Michigan, 63.8% of our commercial real estate loan portfolio is located in this region as of June 30, 2026. We have been able to effectively manage our total non-performing commercial real estate loans, aided by our credit management process. As of June 30, 2026, our allowance for credit losses related to this portfolio was $209.9 million compared to $224.4 million as of June 30, 2025. The decrease in the allowance for credit losses is primarily a result of an improved forecast related to CREPI, partially offset by growth in the portfolio. The table below sets forth the commercial real estate loans by property type and owner vs. non-owner occupied.
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Current report — wording carried from elsewhere
The Company recorded net income of $233.7 million for the second quarter of 2026 compared to $195.5 million in the second quarter of 2025. The results for the second quarter of 2026 demonstrate increased net interest income due to growth in earning assets as well as the Company’s ability to navigate disruptions in the current economic environment during the period due to the
Current report — wording carried from elsewhere
(4)Loans, net of unearned income, include nonaccrual loans.
Current report — wording carried from elsewhere
(5)Interest rate spread is the difference between the yield earned on earning assets and the rate paid on interest-bearing liabilities.
Current report — wording carried from elsewhere
(6)Net free funds are the difference between total average earning assets and total average interest-bearing liabilities. The estimated contribution to net interest margin from net free funds is calculated using the rate paid for total interest-bearing liabilities.
Current report — wording carried from elsewhere
The following table presents a summary of the Company’s net interest income and related net interest margin, including a calculation on a fully taxable-equivalent basis, for the six months ended June 30, 2026 compared to the six months ended June 30, 2025:
Current report — wording carried from elsewhere
(1)Includes interest-bearing deposits with banks and securities purchased under resale agreements with original maturities of greater than three months. Cash equivalents include federal funds sold and securities purchased under resale agreements with original maturities of three months or less.
Current report — wording carried from elsewhere
(2)Investment securities includes investment securities classified as available-for-sale and held-to-maturity, and equity securities with readily determinable fair values. Equity securities without readily determinable fair values are included within other assets.
Current report — wording carried from elsewhere
(3)Interest income on tax-advantaged loans, trading securities and investment securities reflects a taxable-equivalent adjustment based on a marginal federal corporate tax rate in effect as of the applicable period. The total adjustments for the six months ended June 30, 2026 and June 30, 2025 were $5.4 million and $5.8 million, respectively.
Current report — wording carried from elsewhere
(2)Miscellaneous non-interest income includes loan servicing fees, income from other investments, and other fees.
Current report — wording carried from elsewhere
The following table sets forth, by category, the composition of average earning asset balances and the relative percentage of total average earning assets for the periods presented:
Current report — wording carried from elsewhere
(2)Liquidity management assets include investment securities, other securities, interest-earning deposits with banks, federal funds sold and securities purchased under resale agreements.
Rearranged previous paragraphs (1)
Previous report — wording carried elsewhere
Management considers the maintenance of adequate liquidity to be important to the management of risk. Accordingly, during the first quarter of 2026, the Company continued its practice of maintaining appropriate funding capacity to provide the