Wintrust Financial Corporation Reports Quarterly Beat


Wintrust Financial Corporation (WTFC) reported stronger-than-expected Q3 results, topping both earnings and revenue estimates. The results were driven by robust organic loan and deposit growth, higher net interest income and mortgage banking revenue, record wealth management revenue, and impressive credit quality metrics.

Shares of the bank holding company, which engages in the provision of banking and financial services, gained 0.7% on Tuesday to close at $84.61.

Adjusted earnings of $1.77 per share grew 4% year-over-year and beat analysts’ expectations of $1.51 per share. The company reported earnings of $1.67 per share in the prior-year period.

Revenues declined 1% year-over-year to $424 million but exceeded consensus estimates of $407.7 million.

Markedly, net interest income grew for the fourth quarter in a row to $287.5 million, up 12% year-over-year, driven by earning asset growth, lower deposit costs, and one additional day in the quarter.

However, the net interest margin declined 4 bps sequentially to 2.53% but was up 2 bps from the year-ago period. Further, non-interest income declined 20% year-over-year to $136.5 million.

The provision for credit losses was $7.9 million in the quarter, while non-interest expenses were up 7% year-over-year at $282.1 million. (See Wintrust Financial stock charts on TipRanks)

The company reported total loans of $33.3 billion, up 4% from the prior-year quarter. Further, average deposits surged 11% to $40 billion.

Sharing his views on the coming future, CEO Edward J. Wehmer commented, “We expect to leverage our differentiated, diversified loan portfolio to outperform peers with respect to loan growth which should allow us to continue to expand net interest income.”

He further added, “We are opportunistically evaluating the acquisition market which has been active for both banks and business lines of various sizes. Of course, we remain diligent in our consideration of acquisition targets and will be prudent in our decision-making, always seeking to minimize dilution.”

Recently, Jefferies analyst Ken Usdin decreased the price target on Wintrust Financial to $84.00 and reiterated a Buy rating.

Consensus among analysts is a Strong Buy based on 4 Buys and 1 Hold. The average Wintrust Financial price target of $84.60 implies that shares are fully valued at current levels.

TipRanks data shows that financial blogger opinions are 100% Bullish on WTFC, compared to a sector average of 71%.

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