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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 faced challenges due to rising expenses. The company's Q3 earnings revealed a significant increase in non-interest expenses. Although Wintrust reported record net income of $600.8 million for the first nine months of 2025, its efficiency ratio was impacted. According to the company's Q3 earnings call, the efficiency ratio was affected by investments in technology and business expansion. Additionally, the company's loan loss provision increased, which could potentially impact future profitability.

1.c. Company Highlights

2. Wintrust's Record Earnings Driven by Loan and Deposit Growth

Wintrust Financial Corporation reported a third consecutive quarter of record net income, with net income reaching $216 million, up 11% quarter-over-quarter. Net interest income was $567 million, a $20 million increase from the second quarter, driven by loan and balance sheet growth. The company's earnings per share (EPS) came in at $3.06, beating estimates of $2.63. The interest margin was 3.5%, down slightly from the prior quarter. Loan growth was $1 billion, with total loans at $52 billion, up 11% year-to-date on an annualized basis, while deposit growth was $895 million, with total deposits at almost $57 billion.

Publication Date: Oct -21

📋 Highlights
  • Record Net Income Growth:: Wintrust achieved $216 million in net income, an 11% increase quarter-over-quarter, driven by strategic client-focused solutions.
  • Net Interest Income Expansion:: Net interest income rose to $567 million, up $20 million from Q2, fueled by $1 billion in loan growth and $895 million in deposit growth.
  • Strong Balance Sheet Growth:: Total loans reached $52 billion (+11% year-to-date) and deposits approached $57 billion, reflecting robust market share gains in Chicago and Midwest expansion.
  • Stable Net Interest Margin:: Maintained a 3.5% margin despite rate volatility, leveraging swaps to hedge loan yield declines and 80% variable non-term deposits for pricing flexibility.
  • Disciplined Risk Management:: Nonperforming loans dropped to $163 million (31 basis points), with $2 billion in NDFI exposure (no losses) and proactive monitoring of CRE sectors like office real estate.

Loan and Deposit Growth Drivers

The company's loan growth is driven by its unique market positioning in the Chicago area, where it is taking market share from larger banks. Its pipelines are stable, with opportunities coming from larger banks where clients want to work with a more personalized approach. Wintrust has $2 billion in non-depository financial institutions (NDFI) exposure, primarily consisting of mortgage warehouse lines and capital call lines, with no losses experienced.

Credit Quality and Risk Management

Wintrust's credit quality remains good, with nonperforming loans decreasing to $163 million or 31 basis points. Charge-offs were 19 basis points, primarily related to resolving previously reserved credits. The company continues to focus on its commercial real estate loans, which comprise roughly one quarter of its total loan portfolio. It is closely monitoring sectors like higher education and healthcare due to potential risks, but customers are generally well-capitalized.

Outlook and Valuation

The company's net interest margin is expected to remain stable around 3.5%, despite potential rate cuts. With a current Price-to-Tangible Book Value (P/TBV) ratio of approximately 1.23, and a Dividend Yield of 1.51%, the stock appears reasonably valued. Analysts estimate next year's revenue growth at 6.0%. The company's ability to maintain a stable margin, coupled with its strong loan and deposit growth, positions it well for future success.

Growth Prospects and M&A

Wintrust is open to non-bank opportunities, such as in insurance or fee-generating businesses, but no specific deals are being discussed. The company is confident in its ability to organically expand into nearby markets, having successfully achieved this in areas like Rockford and Northwest Indiana. Its disciplined approach to lending and underwriting has allowed it to differentiate itself from private credit lenders.

3. NewsRoom

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Creative Planning Increases Holdings in Wintrust Financial Corporation $WTFC

Nov -26

Source: defenseworld.net

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Creative Planning Buys 2,476 Shares of Wintrust Financial Corporation $WTFC

Nov -26

Source: defenseworld.net

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Ethic Inc. Sells 2,242 Shares of Wintrust Financial Corporation $WTFC

Oct -29

Source: defenseworld.net

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Wintrust Financial Corporation Announces Cash Dividends

Oct -23

Source: globenewswire.com

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Wintrust Financial (NASDAQ:WTFC) and Enterprise Financial Services (NASDAQ:EFSC) Critical Analysis

Oct -23

Source: defenseworld.net

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Wintrust Financial Corporation (WTFC) Q3 2025 Earnings Call Transcript

Oct -21

Source: seekingalpha.com

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Wintrust (WTFC) Q3 Earnings: Taking a Look at Key Metrics Versus Estimates

Oct -20

Source: zacks.com

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Wintrust Financial (WTFC) Surpasses Q3 Earnings and Revenue Estimates

Oct -20

Source: zacks.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: 6.5/10

Value: 6.6

Growth: 7.0

Quality: 7.0

Yield: 4.0

Momentum: 7.0

Volatility: 7.3

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Bank of Hawaii

A-Score: 6.1/10

Value: 6.1

Growth: 3.7

Quality: 7.7

Yield: 8.0

Momentum: 4.0

Volatility: 7.3

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SouthState

A-Score: 5.9/10

Value: 5.7

Growth: 5.4

Quality: 7.4

Yield: 5.0

Momentum: 4.5

Volatility: 7.7

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Atlantic Union Bankshares

A-Score: 5.7/10

Value: 6.5

Growth: 5.2

Quality: 5.6

Yield: 7.0

Momentum: 3.5

Volatility: 6.3

1-Year Total Return ->

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UMB

A-Score: 5.7/10

Value: 5.7

Growth: 5.8

Quality: 5.2

Yield: 4.0

Momentum: 6.5

Volatility: 6.7

1-Year Total Return ->

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Eastern Bank

A-Score: 5.5/10

Value: 3.7

Growth: 5.9

Quality: 5.8

Yield: 5.0

Momentum: 6.0

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

137.45$

Current Price

137.45$

Potential

-0.00%

Expected Cash-Flows