What Wintrust Financial (WTFC) Said on Its Q3 Earnings Call

Key Points

• Record earnings continued: Wintrust reported its seventh consecutive quarter of record net income, with third-quarter profit rising to $239 million from $234 million. Results were supported by loan and deposit growth, a stable 3.51% net interest margin and operating leverage.
• Balance-sheet growth remained strong: Loans and deposits each grew at an annualized 8% rate, while total loans increased 9% year over year. Management expects fourth-quarter loan and deposit growth in the mid- to high-single digits, with net interest margin remaining near 3.5%.
• Credit quality stayed healthy: Nonperforming loans declined to 0.31% of total loans, and net charge-offs remained modest at 15 basis points. Wintrust also plans to redeem roughly $108 million of high-cost trust-preferred securities, which could modestly improve future net interest margin.

Wintrust Financial NASDAQ: WTFC reported a seventh consecutive quarter of record net income in the third quarter of 2026, supported by loan and deposit growth, a stable net interest margin and continued operating leverage.

Net income totaled $239 million, compared with $234 million in the prior quarter. President and Chief Executive Officer Tim Crane said the company’s results reflected “a stable margin and solid core business growth,” with loans and deposits both increasing in line with management’s expectations.

Balance sheet growth and margin stability

Vice Chairman and Chief Operating Officer David Dykstra said loans and deposits each grew at an annualized rate of 8% from the second quarter. Total deposits increased about $1.3 billion during the quarter, helping fund approximately $1.1 billion of loan growth.

Net interest income rose $24.2 million sequentially to $621.6 million, primarily due to a $2.1 billion increase in average earning assets. Net interest margin was 3.51%, down 1 basis point from the prior quarter. Dykstra attributed the decline to the additional day in the third quarter, saying rate changes and business-mix changes had little net effect on the margin.

Wintrust’s net interest margin has remained between 3.50% and 3.59% for the past 11 quarters, Dykstra said. Management expects its interest-rate sensitivity to remain relatively neutral because of the company’s balance-sheet structure and hedging positions, although it noted that a rising-rate environment could provide a modest benefit if deposit costs lag increases in loan indexes.

Crane said the company expects fourth-quarter loan and deposit growth in the mid- to high-single-digit range. Management’s outlook for net interest margin remains broadly stable, at roughly 3.5% plus or minus several basis points.

Deposit gathering and branch expansion

Crane emphasized the importance of core deposit growth, saying it remains “the single most important thing we do to enhance the value of our franchise.” According to FDIC deposit-market-share data cited by the company, Wintrust grew deposits in its core Illinois market by 9.2% year over year, compared with 4.4% growth for the state and 5.2% for the U.S. banking industry.

The company opened four branches during the quarter and two more were scheduled to open in October. Crane said the new locations were off to a good start in deposit gathering and adding households, while helping fill out Wintrust’s Midwestern footprint.

Management said third-quarter deposit growth was somewhat more commercial than retail. Crane described pricing conditions in Chicago, West Michigan and Milwaukee as generally rational, with promotional pricing around 4% or in the low-4% range. Interest-bearing deposit costs declined 1 basis point during the quarter, matching a 1-basis-point reduction in loan yields.

Noninterest-bearing deposits declined as a percentage of total deposits at period-end, though Dykstra said average noninterest-bearing balances were trending higher. He said the company would seek to keep such deposits near 19% of total deposits, while noting that rapid overall balance growth often requires funding through interest-bearing accounts.

Loan growth and credit performance

Vice Chairman and Chief Lending Officer Richard Murphy said loan growth was broad-based. The principal contributors included $690 million in core commercial real estate growth, $226 million in Wintrust Life loans and $153 million in residential mortgage loans. Total loans increased $4.7 billion, or 9%, from a year earlier.

Murphy said commercial real estate growth included new lending opportunities as well as funding on previously committed loans. He characterized the elevated quarterly growth as partly a matter of timing, noting that combined funding over the second and third quarters was more consistent with the company’s recent historical pace.

Management said loan pipelines remained healthy across commercial real estate and commercial and industrial lending. Murphy said the company continues to gain market share in Chicago, Michigan and Wisconsin, while customer conversations have reflected cautious optimism despite uncertainty surrounding rates, inflation, geopolitical developments and the broader economy.

Credit quality remained stable. Nonperforming loans fell to $176.9 million, or 0.31% of total loans, from $179.3 million, or 0.32%, in the prior quarter. Net charge-offs were 15 basis points, slightly higher sequentially but still consistent with what Murphy called a stable and benign credit environment.

Within commercial real estate, nonperforming loans declined to 9 basis points from 12 basis points. The portfolio generated recoveries equal to 5 basis points during the quarter, compared with charge-offs of 2 basis points in the second quarter.

Expenses, wealth management and capital

Noninterest income totaled $136.3 million, down from $141.3 million in the second quarter. The decline reflected $1.9 million less mortgage banking revenue as higher rates affected originations, as well as a roughly $3.5 million swing from unrealized securities gains in the second quarter to unrealized losses in the third quarter.

Noninterest expense was $405.7 million, up $8.1 million sequentially. However, the second quarter included a $5.2 million reversal of an FDIC insurance accrual. Excluding that item, expenses increased $2.9 million, largely due to smaller increases across categories supporting business growth. Dykstra said fourth-quarter expenses should be roughly consistent with third-quarter levels.

Wintrust closed its previously announced guardianship services acquisition on Sept. 1. The transaction added $1.2 billion of assets under management and is expected to support wealth-management revenue. Dykstra said guardianship services generally carry fees in the range of 1%, though the company did not disclose detailed financial results for the acquired business.

The company also plans to redeem seven trust-preferred securities issuances totaling approximately $108 million during the fourth quarter. Dykstra said the securities carry an average spread of about 309 basis points over three-month SOFR and represent some of Wintrust’s highest-cost debt. He estimated the redemption could add about 1 basis point to net interest margin over time, though much of the debt will be retired near the end of the fourth quarter.

Crane said Wintrust’s capital position strengthened during the quarter. He added that the company could consider additional capital deployment options as its capital ratio moves above 10.5%, while maintaining its previously stated priorities.

About Wintrust Financial (NASDAQ:WTFC)

Wintrust Financial Corporation NASDAQ: WTFC is a financial holding company headquartered in Rosemont, Illinois. Through its network of community banking subsidiaries, the company provides banking and financial services to individuals, families, businesses and institutions.

Its offerings include checking and savings accounts, commercial and consumer lending, residential mortgages, treasury management, cash management and other deposit services. Wintrust also provides wealth management, investment services, insurance-related products and specialized finance solutions, including equipment finance and premium finance.

Founded in 1991, Wintrust has built its business through a community banking model that combines local decision-making and relationship-based service with the resources of a larger financial organization.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.