Wintrust Financial’s third quarter results were well received by the market, reflecting broad-based loan growth, disciplined deposit gathering, and a stable net interest margin. Management pointed to the company’s unique positioning in core Midwest markets and its ability to attract clients from larger banks, with CEO Timothy S. Crane noting, “We just landed a very nice relationship, a long-time customer at one of the predominant banks in Chicago.” Continued credit quality and measured expense control were also highlighted as key contributors to the quarter’s positive outcome.
Is now the time to buy WTFC? Find out in our full research report (it’s free for active Edge members).
Wintrust Financial (WTFC) Q3 CY2025 Highlights:
- Revenue: $697.8 million vs analyst estimates of $689.4 million (13.3% year-on-year growth, 1.2% beat)
- Adjusted EPS: $3.06 vs analyst estimates of $2.71 (12.9% beat)
- Adjusted Operating Income: $296.5 million vs analyst estimates of $305.6 million (42.5% margin, 3% miss)
- Market Capitalization: $8.64 billion
While we enjoy listening to the management's commentary, our favorite part of earnings calls are the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention.
Our Top 5 Analyst Questions From Wintrust Financial’s Q3 Earnings Call
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Jon Arfstrom (RBC Capital Markets) asked about loan pipeline dynamics and NDFI (non-depository financial institution) exposure. Richard B. Murphy described expanding opportunities from larger banks and noted mortgage warehouse lending as the primary NDFI component, with stable credit experience.
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Terry McEvoy (Stephens Inc.) inquired about the strategy for playing offense in the Midwest and potential for increased hiring or marketing. CEO Timothy S. Crane said Wintrust remains focused on its local markets, where it has steadily gained share, and will continue to invest in people and capabilities.
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Christopher Edward McGratty (KBW) questioned operating leverage sustainability and potential for acquisitions. Crane replied that the company plans to pursue mid to high single-digit balance sheet growth while keeping expense growth in check, and remains open to disciplined M&A.
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Nathan James Race (Piper Sandler) asked about mortgage fee income trends and the impact of lower rates. CFO David Alan Dykstra noted only a modest pickup in applications, expecting a better outlook if rates decline further, particularly with the spring homebuying season.
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Jackson Singleton (Autonomous Research) queried about net interest margin resilience and deposit beta assumptions. Dykstra explained that deposit costs are still above some peers, providing room to lower rates and maintain margins as market rates shift.
Catalysts in Upcoming Quarters
In upcoming quarters, the StockStory team will monitor (1) sustained loan and deposit growth in core Midwest markets, (2) the ability to hold net interest margins as rate cuts materialize, and (3) ongoing credit quality trends, especially in commercial real estate and office exposures. Execution on organic growth, disciplined underwriting, and potential M&A will also be important milestones.
Wintrust Financial currently trades at $130, up from $126.57 just before the earnings. Is the company at an inflection point that warrants a buy or sell? The answer lies in our full research report (it’s free for active Edge members).
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