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1. Company Snapshot

1.a. Company Description

Wintrust Financial Corporation operates as a financial holding company.It operates in three segments: Community Banking, Specialty Finance, and Wealth Management.The Community Banking segment offers non-interest bearing deposits, non-brokered interest-bearing transaction accounts, and savings and domestic time deposits; home equity, consumer, and real estate loans; safe deposit facilities; and automatic teller machine (ATM), online and mobile banking, and other services.


It also engages in the retail origination and purchase of residential mortgages for sale into the secondary market; and provision of lending, deposits, and treasury management services to condominium, homeowner, and community associations, as well as asset-based lending for middle-market companies.In addition, this segment offers loan and deposit services to mortgage brokerage companies; lending to restaurant franchisees; direct leasing; small business administration loans; commercial mortgages and construction loans; and financial solutions.It provides personal and commercial banking services primarily to individuals, small to mid-sized businesses, local governmental units, and institutional clients.


The Specialty Finance segment offers commercial and life insurance premiums financing for businesses and individuals; accounts receivable financing, value-added, and out-sourced administrative services; and other specialty finance services, as well as data processing of payrolls, billing, and cash management services to temporary staffing industry.The Wealth Management segment provides trust and investment, asset management, tax-deferred exchange, securities brokerage, and retirement plan services.The company operates 173 banking facilities and 228 ATMs in the Chicago metropolitan area, southern Wisconsin, northwest Indiana, and Florida.


Wintrust Financial Corporation was founded in 1991 and is headquartered in Rosemont, Illinois.

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1.b. Last Insights on WTFC

Wintrust Financial Corporation's recent performance was driven by strong Q4 earnings, with the company reporting better-than-expected financial results. The bank's disciplined organic growth, stable net interest margin, and solid credit performance contributed to record net income. Additionally, the company's approach to strategic and disciplined growth produced record pre-tax, pre-provision income. The strong earnings announcement led to a new 52-week high for the stock, with shares trading as high as $150.98. Furthermore, the company's commitment to strategic growth and solid credit performance has garnered increased analyst forecasts, with some analysts revising their estimates upwards.

1.c. Company Highlights

2. Wintrust Financial Corporation Delivers Record Earnings with Strong Loan Growth

Wintrust Financial Corporation reported record net income of $824 million for full year 2025, up 19% from $695 million in 2024, and earnings per diluted share of $11.40, up from $10.31 in 2024. In the fourth quarter, net income was $223 million, a record, up 3% or $7 million from the prior quarter. The company's net interest income reached a record quarterly amount, driven by an increase in average earning assets and a stable net interest margin of 3.54%. The actual EPS for the quarter came out at $3.15, beating estimates of $2.93.

Publication Date: Feb -09

📋 Highlights
  • Record Full-Year Net Income:: Wintrust reported $824 million in 2025, a 19% increase from $695 million in 2024.
  • EPS Growth:: Earnings per diluted share rose to $11.40 in 2025 from $10.31 in 2024.
  • Tangible Book Value Surge:: Increased to $89/share, up over $13 compared to prior periods.
  • Total Assets Expansion:: Year-end assets reached $71 billion, up from previous levels.
  • Loan and Deposit Growth:: Full-year 2025 saw 11% loan growth ($1 billion quarterly) and 10% deposit growth.

Financial Performance Highlights

The company's loan growth was strong, with a $1 billion increase in the fourth quarter, representing 8% growth on an annualized basis. For full year 2025, loans and deposits grew 11% and 10%, respectively. The provision for credit losses remained relatively consistent with prior quarters, and noninterest income and expenses were well managed.

Outlook and Guidance

The company is guiding for mid- to high single-digit loan growth in 2026, funded by a similar level of deposit growth, with a stable margin around 3.5%, and positive operating leverage. The net interest margin is expected to be supported by a hedge program, with the interest-bearing deposit beta cycle expected to be around 57%, trending to the low 60s in 2026.

Valuation and Dividend Yield

With a Price-to-Tangible Book Value (P/TBV) ratio of approximately 1.49, and a Dividend Yield of 1.27%, Wintrust Financial Corporation appears to be reasonably valued. The company's guidance for 2026 contemplates the maturation of hedging programs, with plans to backfill with new hedges as they mature, expecting to maintain a net interest margin (NIM) in the 3.50s. Analysts estimate next year's revenue growth at 6.4%.

Credit Performance and Capital Management

Credit performance continued to be solid, with nonperforming loans increasing slightly but remaining at a manageable level. The company's goal is to continue to deliver solid and consistent financial performance in 2026. Wintrust has built capital ratios nicely over the last 12 months despite robust loan growth, and may consider buybacks and dividend increases if the capital ratio reaches 10.5% or above.

3. NewsRoom

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Channing Capital Management LLC Has $89.85 Million Position in Wintrust Financial Corporation $WTFC

Feb -22

Source: defenseworld.net

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Market Today: Amazon capex, AI selloff, Disney CEO shift

Feb -05

Source: gurufocus.com

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First Look: AI shock hits software, Bitcoin breaks $70K, Disney names new CEO

Feb -05

Source: gurufocus.com

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Cornerstone Planning Group LLC Increases Position in Wintrust Financial Corporation $WTFC

Feb -03

Source: defenseworld.net

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Why One Fund Trimmed 1.4% Exposure to a Bank Stock Up 13% in a Year

Feb -01

Source: fool.com

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Wintrust Financial Corporation $WTFC Shares Sold by Federated Hermes Inc.

Jan -29

Source: defenseworld.net

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Wintrust Financial Q4 Earnings Call Highlights

Jan -23

Source: defenseworld.net

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Wintrust Financial Corporation Announces Cash Dividends, Increasing Quarterly Common Stock Dividend Rate By 10%

Jan -22

Source: globenewswire.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (6.21%)

6. Segments

Community Banking

Expected Growth: 6%

Wintrust Financial Corporation's Community Banking segment growth is driven by strategic acquisitions, expansion into new markets, and a focus on commercial lending. Strong relationships with local businesses and municipalities, as well as a commitment to community development, also contribute to growth. Additionally, the segment benefits from a diverse revenue stream and a solid balance sheet, enabling it to capitalize on market opportunities.

Specialty Finance

Expected Growth: 8%

Wintrust Financial Corporation's Specialty Finance segment growth is driven by increasing demand for equipment financing, expansion into new markets, and strategic acquisitions. Additionally, the segment benefits from a strong pipeline of new business opportunities, a diversified portfolio, and a favorable interest rate environment, contributing to an 8% growth rate.

Wealth Management

Expected Growth: 5%

Wintrust Financial Corporation's Wealth Management segment growth is driven by increasing demand for investment management services, strategic acquisitions, and expansion of its advisory services. Additionally, the company's focus on providing personalized wealth management solutions, robust risk management practices, and a strong reputation in the market contribute to its 5% growth.

Intersegment Eliminations

Expected Growth: 0%

Wintrust Financial Corporation's Intersegment Eliminations with 0% growth is driven by the absence of significant transactions between its subsidiaries, lack of material eliminations, and a stable organizational structure, resulting in no eliminations required to consolidate financial statements.

7. Detailed Products

Community Banking

Provides traditional community banking services, including checking and savings accounts, loans, and treasury management services to individuals, small businesses, and commercial customers.

Commercial Banking

Offers commercial lending, treasury management, and deposit services to middle-market companies, as well as asset-based lending and factoring services.

Wealth Management

Provides investment, trust, and estate services to individuals, families, and institutions through its subsidiaries, including Wintrust Investments and Great Lakes Advisors.

Mortgage Banking

Originates and services residential mortgages, as well as provides mortgage banking services to financial institutions.

Specialty Lending

Offers specialized lending services, including commercial mortgage banking, construction lending, and leasing services.

Fiduciary Services

Provides fiduciary services, including trust, estate, and guardianship services, through its subsidiary, Chicago Deferred Exchange Company.

8. Wintrust Financial Corporation's Porter Forces

Forces Ranking

Threat Of Substitutes

Wintrust Financial Corporation operates in a highly competitive industry, but the threat of substitutes is mitigated by the complexity and specialization of financial services.

Bargaining Power Of Customers

Wintrust Financial Corporation's customers have significant bargaining power due to the availability of alternative financial institutions and online banking services.

Bargaining Power Of Suppliers

Wintrust Financial Corporation has a diverse supplier base, and the bargaining power of suppliers is limited due to the company's size and negotiating power.

Threat Of New Entrants

The threat of new entrants in the financial services industry is moderate, as regulatory barriers and capital requirements limit the ease of entry.

Intensity Of Rivalry

The financial services industry is highly competitive, with many established players and a high level of rivalry among banks and financial institutions.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 40.68%
Debt Cost 5.51%
Equity Weight 59.32%
Equity Cost 9.95%
WACC 8.14%
Leverage 68.57%

11. Quality Control: Wintrust Financial Corporation passed 3 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Stock-Card
Wintrust Financial

A-Score: 6.2/10

Value: 6.7

Growth: 6.9

Quality: 7.2

Yield: 4.0

Momentum: 5.0

Volatility: 7.3

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Bank of Hawaii

A-Score: 6.0/10

Value: 6.0

Growth: 3.7

Quality: 7.5

Yield: 8.0

Momentum: 3.0

Volatility: 8.0

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Atlantic Union Bankshares

A-Score: 5.9/10

Value: 6.2

Growth: 5.2

Quality: 7.0

Yield: 8.0

Momentum: 2.5

Volatility: 6.7

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SouthState

A-Score: 5.5/10

Value: 5.3

Growth: 5.4

Quality: 6.9

Yield: 5.0

Momentum: 2.5

Volatility: 7.7

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UMB

A-Score: 5.4/10

Value: 5.9

Growth: 5.8

Quality: 6.3

Yield: 4.0

Momentum: 3.5

Volatility: 7.0

1-Year Total Return ->

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Eastern Bank

A-Score: 5.4/10

Value: 3.8

Growth: 5.8

Quality: 6.1

Yield: 5.0

Momentum: 5.0

Volatility: 6.7

1-Year Total Return ->

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

156.3$

Current Price

156.3$

Potential

-0.00%

Expected Cash-Flows