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WINTRUST FINANCIAL CORP (WTFC)·Q3 2025 Earnings Summary

Executive Summary

  • Record quarter: Net income $216.3M and net interest income $567.0M, with NIM at 3.48% GAAP / 3.50% FTE; QoQ balance sheet growth was solid (loans +$1.0B, deposits +$894.6M) .
  • EPS: GAAP diluted EPS $2.78; excluding one-time preferred stock impacts, diluted EPS was $3.06, enabling a clear beat versus Wall Street consensus $2.71*; revenue was modestly below SPGI consensus ($675.6M* actual vs $689.4M* estimate) while the Company’s reported “Net revenue” rose to $697.8M .
  • Credit quality improved on NPLs (0.31% of loans vs 0.37% QoQ), though net charge-offs rose to 19 bps (from 11 bps) due to resolution of previously reserved credits .
  • Guidance tone maintained: management expects stable ~3.50% NIM and net interest income expansion in Q4, with loan growth in the mid-to-high single digits; hedging program moderates downside in a lower-rate cycle .
  • Dividend: Board declared a $0.50 common dividend (payable Nov 20, 2025) and set the Series F preferred dividend schedule (payable Jan 15, 2026) .

What Went Well and What Went Wrong

  • What Went Well

    • Record net income ($216.3M) and record net interest income ($567.0M) on strong average earning asset growth; “We continued to build on the momentum… with record net income, net interest income, strong balance sheet growth and prudent management of net interest margin.” — Tim Crane .
    • Deposit share gains and stable NIM: “Net interest margin… at 3.50% and we recognized record net interest income… We anticipate… a relatively stable net interest margin and continued balance sheet growth will contribute to net interest income expansion in the fourth quarter.” — Tim Crane .
    • Credit metrics improved: NPLs fell to $162.6M (0.31% of loans) from $188.8M (0.37%), allowance coverage remained robust; management emphasized proactive resolution — “This quarter is a perfect example of our commitment to identify problems early…” — Rich Murphy .

  • What Went Wrong

    • Net charge-offs increased to $24.6M (19 bps of average loans) from $13.3M (11 bps) QoQ, driven by resolutions of previously reserved credits .
    • NIM ticked down 4 bps QoQ (GAAP 3.48% vs 3.52%), reflecting a 4 bps decrease in loan yields and +1 bp increase in interest-bearing deposit costs .
    • Reported “Revenue” per SPGI estimates context missed consensus by ~$13.9M*, despite Company-reported net revenue rising QoQ to $697.8M; highlights definitional differences and investor modeling risk .

Financial Results

Summary Income and Margin (oldest → newest)

MetricQ3 2024Q2 2025Q3 2025
Net revenue ($USD Thousands)$615,730 $670,783 $697,837
Net interest income ($USD Thousands)$502,583 $546,694 $567,010
Non-interest income ($USD Thousands)$113,147 $124,089 $130,827
Net income ($USD Thousands)$170,001 $195,527 $216,254
Diluted EPS ($)$2.47 $2.78 $2.78
NIM (GAAP, %)3.49% 3.52% 3.48%
NIM (FTE non-GAAP, %)3.51% 3.54% 3.50%
Efficiency ratio (GAAP, %)58.88% 56.92% 54.69%
ROA (%)1.11% 1.19% 1.26%

Balance Sheet KPIs (period-end; oldest → newest)

MetricQ3 2024Q2 2025Q3 2025
Total assets ($USD Thousands)$63,788,424 $68,983,318 $69,629,638
Total loans ($USD Thousands)$47,067,447 $51,041,679 $52,063,482
Total deposits ($USD Thousands)$51,404,966 $55,816,811 $56,711,381
Loans-to-deposits (period-end, %)91.6% 91.4% 91.8%
CET1 capital ratio (%)9.8% 10.0% 10.2%
TBV per share ($)$76.15 $81.86 $85.39
NPLs ($USD Thousands)$179,687 $188,838 $162,632
NPLs / Total loans (%)0.38% 0.37% 0.31%
Net charge-offs (bps of average loans, annualized)23 bps 11 bps 19 bps

Non-Interest Income Components (oldest → newest)

Category ($USD Thousands)Q3 2024Q2 2025Q3 2025
Wealth management$37,224 $36,821 $37,188
Mortgage banking$15,974 $23,170 $24,451
Service charges on deposits$16,430 $19,502 $19,825
Gains (losses) on investment securities, net$3,189 $650 $2,972
Fees from covered call options$988 $5,624 $5,619
Operating lease income, net$15,335 $15,166 $15,466
Other$24,137 $23,005 $25,134

Guidance Changes

MetricPeriodPrevious GuidanceCurrent GuidanceChange
Net interest margin (FTE)2H25“Relatively stable” ~3.54% in Q2; stable through 2025 ~3.50% in Q3; “maintain relatively stable NIM” through remainder of 2025 Maintained
Net interest incomeQ3→Q4 2025“Expect NII higher in Q3” “Expect NII expansion in Q4” Maintained upward trajectory
Loan growthRemainder of 2025Mid-to-high single digits Mid-to-high single digits (pipelines strong) Maintained
Deposit growthRemainder of 2025Growth to fund loans Core deposit growth continues; rational pricing supports funding Maintained
Expenses2H25Low-$380M quarterly run-rate with seasonal Q3 marketing Q3 delivered $380.0M; management aims to hold ~$380–$385M Maintained
Hedging/capital management2025–2026Hedges effective; opportunistic adds Derivative schedule detailed; hedges modestly reduced NIM by 5 bps in Q3; protect margin/capital in lower-rate cycle Reinforced
DividendQ4 2025Prior $0.50/qtr common Declared $0.50 common (Nov 20, 2025); Series F preferred dividend schedule (Jan 15, 2026) Maintained

Earnings Call Themes & Trends

TopicPrevious Mentions (Q1 & Q2 2025)Current Period (Q3 2025)Trend
NIM stability & hedgingQ1: NIM up to 3.56%, neutral rate sensitivity; Q2: NIM 3.54%, stable outlook NIM 3.50 (FTE); hedges reduced NIM by 5 bps; stable NIM expected through Q4 Stable to slight down; well-hedged
Premium finance growthQ1: Strong; Q2: P&C +$1B seasonality, firm market, share gains Continued strength; bullish outlook; granularity supports pricing Durable growth; firm-to-moderating rates
Mortgage bankingQ1: subdued; Q2: modest improvement; platform migration benefits Slight pickup; applications still sluggish; need 25–50 bps drop to accelerate Slow, potential improvement with lower rates
Deposit market shareQ1/Q2: strong core growth; rational pricing Moved to #3 in Illinois market share; gains in WI & West MI Positive share gains
M&A optionalityQ2: disciplined, opportunistic; tailwinds from regulation Board prepared “either side of the equation”; bolt-ons preferred Optional; organic preferred
Macro/tariffs & regulationQ1: uncertainty; cautious optimism; overlays in ACL Measured optimism; watch higher ed/healthcare; risk = irrational competition Cautiously optimistic; vigilant ACL

Management Commentary

  • “Net interest margin in the third quarter remained within our expected range at 3.50% and we recognized record net interest income driven by strong average earning asset growth. We anticipate that a relatively stable net interest margin and continued balance sheet growth will contribute to net interest income expansion in the fourth quarter.” — Tim Crane .
  • “Without [preferred stock] impact, fully diluted net income per common share would have been $3.06.” — Dave Dykstra .
  • “Disciplined credit management… early identification and resolution of problem credits. We believe the Company’s reserves are appropriate…” — Tim Crane .
  • “We are very disciplined in our approach to underwriting… We pass on deals that do not meet our rigorous standards.” — Tim Crane .

Q&A Highlights

  • Margin durability: Management expects to hold ~3.50% NIM even with 3–4 Fed cuts; deposit betas mid-60s; hedges and rational pricing underpin stability .
  • Premium finance outlook: Continued share gains; portfolio granular and resilient; yields mid-7% for P&C production .
  • Mortgage banking: Applications remain sluggish; need further rate declines; Q4 seasonally low; expect better in 2026 if mortgage rates fall .
  • Competition risk: Biggest NIM risk would be “irrational competition”; current markets remain rational; pricing discipline maintained .
  • M&A stance: Optionality “either side of the equation”; bolt-ons in core markets favored; organic expansion continues .

Estimates Context

  • Q3 2025 EPS: Actual 3.06 vs consensus 2.71146*; EPS beat appears driven by stronger pre-tax, pre-provision income and exclusion of one-time preferred stock items in the SPGI “Primary EPS actual” track . Values retrieved from S&P Global.
  • Q3 2025 Revenue: Actual $675,550,000 vs consensus $689,415,090*; miss vs SPGI consensus, noting the Company’s reported “Net revenue” is $697,837,000 (definition differences) . Values retrieved from S&P Global.
  • Estimate depth: EPS # of estimates = 14*; Revenue # of estimates = 10*. Values retrieved from S&P Global.
MetricConsensusActual# of Estimates
EPS ($)2.71146*3.06*14*
Revenue ($USD)689,415,090*675,550,000*10*

Values retrieved from S&P Global.

Key Takeaways for Investors

  • Earnings quality: Core profitability strengthened; record NII and improved efficiency ratio suggest operating leverage despite mild NIM compression .
  • Beat narrative: EPS beat versus consensus (on SPGI’s primary EPS) and credible Q4 NII expansion guide can be near-term catalysts; watch definitional gaps on “revenue” framing .
  • Balance sheet growth: Consistent mid-to-high single-digit loan and deposit growth, with strong pipelines and market share gains in Illinois, Wisconsin, and West Michigan .
  • Credit watch: NPLs improved; NCOs rose on resolved credits; maintain vigilance on CRE office (3% of total loans) and monitored sectors (higher ed/healthcare) .
  • Rate path: Hedging and variable deposit base support NIM stability in a lower-rate cycle; deposit betas mid-60s enable funding cost relief with cuts .
  • Capital & dividend: CET1 at 10.2%; continued TBV growth; common dividend maintained at $0.50; preferred dividend schedule set .
  • Positioning: Rational competition and disciplined underwriting reduce downside; optional M&A adds flexibility, but organic growth remains core strategy .

Additional Detail: Segment/Portfolio Highlights

Loan Portfolio Mix and Growth (Q3 2025 vs Q2 2025)

Category ($USD Thousands)Q2 2025Q3 2025QoQ Change (Ann.)
Total loans$51,041,679 $52,063,482 +8%
Core loans$29,928,663 $30,610,433 +9%
Niche loans$21,113,016 $21,453,049 +6%

Deposit Mix (Q3 2025 vs Q2 2025)

Category ($USD Thousands)Q2 2025Q3 2025
Non-interest-bearing$10,877,166 $10,952,146
Money market$19,556,041 $20,270,382
Time CDs$10,332,696 $10,418,456
Total deposits$55,816,811 $56,711,381

Cross-References and Disclosures

  • Earnings press release and exhibits (8-K 2.02): full Q3 2025 details, including non-GAAP reconciliations and derivative schedule .
  • Earnings call transcript (Q3 2025): strategic commentary on NIM, deposits, premium finance, mortgage banking, competition, and M&A .
  • Other Q3 press releases: Dividend announcement (Oct 23, 2025); Board appointments (Oct 2, 2025) .
  • Prior quarters’ context: Q2 2025 press and call on record NII/NIM stability; Q1 2025 call on neutrality to rates and cautious macro .

Notes: SPGI estimates marked with an asterisk; Values retrieved from S&P Global.