Wintrust Financial Corp at RBC Capital Markets Global Financial Institutions Conference Transcript

The following is excerpted from the question-and-answer section of the transcript.

Question: Jon Arfstrom - RBC Capital Markets - Analyst : So maybe, Tim, start us off with a 30,000-foot view of what is Wintrust.

Question: Jon Arfstrom - RBC Capital Markets - Analyst : Okay. Good. Thank you. Maybe for you, Rich or Tim, but there's a lot of debate, and it seems to change every day, every week, about the economy, the state of the economy. Can you just give us your thoughts on how you think the economy is tracking and what you're seeing?

Question: Jon Arfstrom - RBC Capital Markets - Analyst : Anything to add?

Question: Jon Arfstrom - RBC Capital Markets - Analyst : Okay. Pipelines, can you talk a little bit about pipelines and what you've seen in some of the trends there?

Question: Jon Arfstrom - RBC Capital Markets - Analyst : Okay. And with all these sessions, we're open for questions. So if anybody has questions, just put your hand up and we'll show up with a microphone. On the topic of competition, last quarter, I think I probably asked the question, and I didn't expect it to get quite the reaction from investors, but there's this concept of bigger banks becoming more competitive, risk-weighted asset diets going away, nonbank financials being more competitive. You mentioned some competitive pressures. Can you talk a little bit more about that? Has it changed at all? Do you expect it to change more in the coming year?

Question: Jon Arfstrom - RBC Capital Markets - Analyst : Yes, okay. Okay. Commercial real estate has been a topic. It was maybe more of a topic a year ago, especially at our conference. We're hoping for a drama-free conference, we'll see. But what are you seeing in commercial real estate? What are renewals like? What kind of demand is there?

Question: Jon Arfstrom - RBC Capital Markets - Analyst : Okay. Tim, you mentioned niche businesses. Premium finance is a business that I understand it, I think you understand it, but sometimes it confuses people. Just quick tutorial on premium finance, why is it unique for you? And what kind of demand do you see for your business?

Question: Jon Arfstrom - RBC Capital Markets - Analyst : Variable rate tied to the short end.

Question: Jon Arfstrom - RBC Capital Markets - Analyst : Okay. So loan growth in general, sticking with your guidance -- Any color on higher end versus lower end, what it would take to get you to either end of the range?

Question: Jon Arfstrom - RBC Capital Markets - Analyst : Okay. Quick update on how Macatawa is doing, maybe a quick description of that and how is that performing?

Question: Jon Arfstrom - RBC Capital Markets - Analyst : Interesting. Okay. The first IPO I worked on. Yes, I was a young guy. I won't go into it, but good stories around that. On the margin, you guys have done a nice job keeping the margin in a range, in a band. There's a lot of debate over how you do that and how you get there. But talk a little bit about your margin expectations, do you expect to be able to hold it in this range, around 3.50%? REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. MARCH 04, 2025 / 1:40PM, WTFC.OQ - Wintrust Financial Corp at RBC Capital Markets Global Financial Institutions Conference

Question: Jon Arfstrom - RBC Capital Markets - Analyst : So preference is a little steeper?

Question: Jon Arfstrom - RBC Capital Markets - Analyst : Okay. Okay. What are you seeing on deposit pricing? You have a pretty granular base in general, but --

Question: Jon Arfstrom - RBC Capital Markets - Analyst : Do you feel like deposit growth can match your loan growth aspirations?

Question: Jon Arfstrom - RBC Capital Markets - Analyst : Okay. Okay, good. So steady message on the margin, steeper curve, a little bit better, rates start to come in, mortgage helps, always feel good about it.

Question: Jon Arfstrom - RBC Capital Markets - Analyst : Okay. You did touch on mortgage, and those are some of the questions I wanted to ask. But 10-year is low 4's at this point. Are you seeing any signs of life or any hope in terms of volumes?

Question: Jon Arfstrom - RBC Capital Markets - Analyst : Okay. Okay, good. On your other fee businesses, you have a few that are standouts, but I wanted to maybe touch on wealth a little bit. I know it's been very consistent leadership there. You've done well. Talk about some of your expectations --

Question: Jon Arfstrom - RBC Capital Markets - Analyst : Okay. Do you have everything you need in treasury, fully competitive with -- REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. MARCH 04, 2025 / 1:40PM, WTFC.OQ - Wintrust Financial Corp at RBC Capital Markets Global Financial Institutions Conference

Question: Jon Arfstrom - RBC Capital Markets - Analyst : Sweet spot.

Question: Jon Arfstrom - RBC Capital Markets - Analyst : Okay. I wanted to ask a little on expenses. Talk about your expectations for expenses. What are the pressure points? What kind of operating leverage aspirations do you have for the company?

Question: Jon Arfstrom - RBC Capital Markets - Analyst : Okay. Interesting. I wanted to ask about this later, but regulation, do you think about $100 billion in assets? Number one. Do you have any other investments that you feel you're making that might potentially get eased if the regulatory environment continues to ease like it has been recently?

Question: Jon Arfstrom - RBC Capital Markets - Analyst : Okay. I think I would call it like being at a teaching hospital. Everybody is going to look, right? Okay. Asset quality, it was a topic a year ago. It was a heavy topic. You touched on CRE a little bit, but just there's a lot of concern about the consumer. There's concern about whether or not this is going to result in eventually a recession. What's the Rich Murphy, Tim Crane view on credit and the outlook?

Question: Jon Arfstrom - RBC Capital Markets - Analyst : Okay. So nothing that's really changing your reserve expectations and don't feel the need to build at all?

Question: Jon Arfstrom - RBC Capital Markets - Analyst : We got a few minutes left. I just want to make sure that I give people an opportunity to ask questions. M&A, usually the last topic. You had a -- it sounds like a very successful deal in Western Michigan. You guys have been prolific over time. How do you feel about M&A? How do you feel about the activity? Are people calling you? Just --

Question: Jon Arfstrom - RBC Capital Markets - Analyst : Okay. Anything on your regulatory wish list?

Question: Jon Arfstrom - RBC Capital Markets - Analyst : Okay. We got 1.5 minutes more. Question was, describe the link between better regulation and stronger earnings.

Question: Jon Arfstrom - RBC Capital Markets - Analyst : Okay. Well, that's it, guys. Feel good about loan growth, typical slower first quarter, but middle of the range feels good. Margin, consistent guide, higher for longer is okay. If we get some cuts, mortgage picks up the slack, credit feels fine.