Wintrust Financial Corporation (WTFC) Earnings & Analysis

Latest quarter

Wintrust reported second-quarter revenue of $1.1 billion, up from $1.0 billion a year earlier, and diluted earnings per share of $3.30, compared with $2.78. The company said net income increased as higher net interest and non-interest income more than offset higher expenses.

In a separate, later comparison for the quarter ended September 30, adjusted earnings per share as the consensus counts them were $3.37, above the $3.29 consensus. Revenue on the same basis was $760.6 million, above the $756.3 million consensus.

For the second quarter, Wintrust attributed higher net interest income primarily to growth in earning assets, particularly loans. Its net interest margin was 3.50%, down from 3.52% a year earlier, which the filing primarily attributed to lower loan yields.

The filing said mortgage banking, operating lease and wealth management revenue contributed to the increase in non-interest income. It attributed higher non-interest expense primarily to salaries and employee benefits. Free cash flow was $237.9 million, compared with $312.1 million a year earlier.

Adjusted EPS is the figure the consensus estimates, not the GAAP EPS above.

What management said on the call

The latest available call covered the first quarter, before the second-quarter results. CEO Timothy Crane said loan and deposit growth had been in line with expectations and that growth was organic. He said Wintrust continued to acquire new customers, whom he attributed to its customer-service approach.

Looking ahead from that call, Crane expected seasonal growth in property and casualty premium finance loans in the second quarter and mid- to high-single-digit loan growth for the rest of the year. He said Wintrust would seek to fund loan growth with a similar level of deposit growth. He also expected net interest income to grow in coming quarters alongside a stable margin.

In the Q&A, Chief Credit Officer Richard Murphy said early-year loan payoffs had subdued growth, while warehouse line growth helped near quarter-end. He described commercial and industrial loan pipelines as having momentum. On commercial credit, Murphy said issues involved individual customers rather than an industry concentration: “There is nothing systemic here.”

Vice Chairman David Alan Dykstra said mortgage applications had picked up when rates fell, then declined when rates rose again. He expected quarterly mortgage revenue to remain in its recent range absent a meaningful pickup in activity, with about half coming from servicing. Crane said Wintrust had gained share in mortgage warehouse lending and added originator clients.

Crane described deposit pricing in Wintrust’s markets as rational. Dykstra expected the deposit mix to remain relatively consistent, although he anticipated interest-bearing deposits would grow faster to support lending.

On investment, Crane said Wintrust planned to open branches in the second half and continue investing in digital capabilities. Dykstra said infrastructure could handle stronger loan growth without a significant expense increase. Crane also characterized acquisition discussions as exploratory rather than serious.

Guidance

In its October results release, Wintrust said it expected further revenue growth as it closed out 2026, following its discussion of the year’s outlook on the earlier first-quarter earnings call.