Regional banking company Wintrust Financial (NASDAQ: WTFC) reported Q3 CY2025 results topping the market’s revenue expectations, with sales up 13.3% year on year to $697.8 million. Its non-GAAP profit of $3.06 per share was 12.9% above analysts’ consensus estimates.

Is now the time to buy WTFC? Find out in our full research report (it’s free for active Edge members).

StockStory’s Take

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.

Looking forward, management emphasized that maintaining stable margins, disciplined underwriting, and continued market share gains in key Midwest geographies will be the main focus. Crane stated, “We believe our approach to credit underwriting and our diversified portfolio serve us well.” The company’s outlook assumes mid to high single-digit loan and deposit growth, with ongoing investment in core markets and a continued focus on relationship-based banking. Management believes that rational competition and its relationship-driven approach will help sustain financial performance even as interest rates and competitive dynamics evolve.

Key Insights from Management’s Remarks

Management attributed third quarter performance to strong market share gains, relationship-driven client wins, and consistent credit quality amid ongoing industry competition.

• Market share gains in core markets: Wintrust continued to grow its deposit market share, particularly in Illinois where it now ranks third, and reported strong gains in Wisconsin and West Michigan. Management highlighted that its strategy of focusing on relationship banking is attracting clients from both large and small competitors.

• Broad-based loan growth: Loan growth was diversified across commercial real estate, leasing, residential mortgage, and premium finance verticals. Richard B. Murphy, Vice Chairman and Chief Lending Officer, emphasized that pipelines remain solid, driven by opportunities with clients seeking a more personalized banking approach.

• Stable credit performance: Credit quality metrics remained strong, with nonperforming loans and charge-offs at low levels. Murphy noted that proactive identification of credit issues and disciplined underwriting contributed to stability, particularly within commercial real estate and office exposures.

• Expense control and efficiency: Non-interest expenses were well managed, with the efficiency ratio improving quarter-over-quarter. CFO David L. Stoehr pointed out that expense growth remains in line with targets despite continued investment in franchise-building activities.

• Margin stability despite interest rate environment: Net interest margin held steady at 3.5%. Management stated that both sides of the balance sheet are variable enough to absorb rate changes, and deposit pricing remains rational in Wintrust’s core markets, supporting confidence in margin sustainability.

Drivers of Future Performance

Wintrust expects future performance to be driven by continued market share gains, disciplined underwriting, and maintaining stable net interest margins despite evolving rate conditions.

• Midwest focus and market share: Management is prioritizing organic growth and selective acquisitions in core Midwest markets, banking on its ability to take share from both large and small competitors. The company believes this focus will support consistent loan and deposit growth.

• Margin stability amid rate changes: CFO David Alan Dykstra stated that Wintrust’s variable-rate loan portfolio and flexible deposit base position it to maintain a net interest margin around 3.5%, even if the Federal Reserve cuts rates multiple times. The company’s asset-liability management and swap strategies are expected to cushion margin volatility.

• Credit quality and disciplined growth: Management emphasized the importance of early identification of credit issues and maintaining rigorous underwriting standards. While commercial real estate remains a watch area, proactive client engagement and diversified lending are expected to limit credit risk. The company is monitoring higher education and healthcare exposures closely as potential areas of attention.

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 $129.41, up from $126.57 just before the earnings. At this price, is it a buy or sell? Find out in our full research report (it’s free for active Edge members).

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