Core Viewpoint - Wintrust Financial (WTFC) has been upgraded to a Zacks Rank 2 (Buy), indicating a positive outlook based on rising earnings estimates, which significantly influence stock prices [1][3]. Earnings Estimates and Stock Price Impact - The Zacks rating system focuses on changes in earnings estimates, which are strongly correlated with near-term stock price movements, particularly due to institutional investors adjusting their valuations based on these estimates [4][6]. - For Wintrust, the increase in earnings estimates suggests an improvement in the company's underlying business, likely leading to higher stock prices as investors respond positively to this trend [5][8]. Zacks Rank System - The Zacks Rank system classifies stocks into five groups based on earnings estimates, with a proven track record of Zacks Rank 1 stocks generating an average annual return of +25% since 1988 [7]. - Wintrust's upgrade to Zacks Rank 2 places it in the top 20% of Zacks-covered stocks, indicating strong potential for market-beating returns in the near term [10]. Earnings Estimate Revisions - For the fiscal year ending December 2026, Wintrust is expected to earn $12.26 per share, with a 2.9% increase in the Zacks Consensus Estimate over the past three months, reflecting analysts' growing confidence in the company's performance [8].

Core Viewpoint - TD Cowen has raised the price target for Wintrust Financial (WTFC) to $177 from $170 while maintaining a Buy rating on the shares, indicating confidence in the company's growth potential and market position [1] Group 1: Earnings Performance - Wintrust Financial's Q4 earnings exceeded expectations, highlighting a "differentiated organic growth profile" and market share gains [1] - The strong earnings performance reinforces the positive outlook for the company's future growth [1] Group 2: Growth Outlook - TD Cowen anticipates "strong growth momentum" for Wintrust Financial moving into 2026 [1] - The firm expects a stable net interest margin for Wintrust, which is crucial for its profitability [1]

Core Viewpoint - Wintrust Financial Corporation announced a quarterly cash dividend increase of 10% to $0.55 per share, reflecting strong financial performance and commitment to returning value to shareholders [1]. Group 1: Dividend Announcements - The Board of Directors approved a quarterly cash dividend of $0.55 per share, payable on February 19, 2026, to shareholders of record as of February 5, 2026, up from $0.50 in 2025 [1]. - Additionally, a cash dividend on the 7.875% Fixed-Rate Reset Non-Cumulative Perpetual Preferred Stock, Series F, was approved, payable on April 15, 2026, to shareholders of record as of April 1, 2026 [2]. Group 2: Company Overview - Wintrust is a financial holding company with $71.1 billion in assets, traded on the Nasdaq Global Select Market [3]. - The company operates over 200 retail banking locations through 16 community bank subsidiaries across various regions, including greater Chicago and southern Wisconsin [3]. - Wintrust provides a range of services, including residential mortgage origination, wealth management, and commercial insurance premium financing [3].

Core Insights - Wintrust Financial Corporation reported better-than-expected fourth-quarter financial results, with earnings of $3.15 per share surpassing the analyst consensus estimate of $2.92 per share and quarterly sales of $714.264 million exceeding the estimate of $700.352 million [1] Financial Performance - The company achieved a 19% improvement in net income for 2025, indicating robust growth in both loans and deposits [2] - Wintrust ended the year with record net income, record net interest income, a stable net interest margin, and strong balance sheet growth [2] Stock Performance - Following the earnings announcement, Wintrust Financial shares gained 2.3%, trading at $155.08 [2] Analyst Ratings and Price Targets - Piper Sandler analyst Nathan Race maintained an Overweight rating on Wintrust Financial and raised the price target from $161 to $184 [4] - RBC Capital analyst Jon G. Arfstrom maintained an Outperform rating and raised the price target from $160 to $175 [4]

Core Themes - Wintrust demonstrated disciplined growth above most peers, achieving third position in deposit market share in the Chicago area during 2025, with strong gains in Wisconsin and West Michigan [1] - The company reported record net income of $223 million for Q4 2025, a 3% increase sequentially, attributed to solid loan and deposit growth, improved margins, stable credit quality, and controlled non-interest expenses [2] - Full-year 2025 net income reached $824 million, up 19% from $695 million in 2024, with earnings per diluted share increasing to $11.40 from $10.31, and tangible book value rising to nearly $89 [3][4] Financial Performance - Wintrust's total assets ended 2025 at just over $71 billion, with Q4 net income being a record at $223 million [3][4] - The company achieved an 11.2% growth in net revenue, outpacing non-interest expense growth by 340 basis points, while investing in technology and personnel [7] - Non-interest income for Q4 totaled $130.4 million, remaining flat compared to the prior quarter, impacted by lower securities gains and softness in mortgage revenue [10][11] Loan and Deposit Growth - Loans and deposits increased by approximately 11% and 10% for the year, respectively, with both categories rising about $1.0 billion in Q4 [6][8] - The net interest margin remained stable around 3.5%, supporting record net interest income, with a fourth-quarter margin of 3.54% [9][6] Credit Quality - Credit performance remained solid, with non-performing loans slightly increasing to $185.8 million, but still manageable, and net charge-offs decreasing to 17 basis points [14] - The company closely monitors commercial real estate, which constitutes about one-quarter of its total loan portfolio, with signs of stabilization in non-performing loans [14] 2026 Outlook - Management targets mid- to high-single-digit loan and deposit growth for 2026, with a stable net interest margin around 3.5% [5][15] - The company expects positive operating leverage, with expenses growing more slowly than revenues, and anticipates improvements in wealth management and service-based fee income [16][15] - An existing share repurchase authorization of over $200 million is in place, with a focus on organic growth as the main priority [17]

Financial Data and Key Metrics Changes - For the full year 2025, the company reported net income of $824 million, a 19% increase from $695 million in 2024. Earnings per diluted share rose to $11.40 from $10.31 in 2024, and tangible book value increased by over $13 to nearly $89 per share [5][6][10] - Total assets at year-end were just over $71 billion, with a record net income of $223 million in the fourth quarter, up 3% or $7 million from the prior quarter [5][12] Business Line Data and Key Metrics Changes - Loan growth for the fourth quarter was approximately $1 billion, representing an 8% increase on an annualized basis, while deposit growth was also $1 billion, reflecting a 7% increase [9][10] - For the full year, loans and deposits grew by 11% and 10%, respectively [9] Market Data and Key Metrics Changes - The company moved into third position in deposit market share in the Chicago area, with strong gains in Wisconsin and West Michigan [7] - The credit quality remained solid, with non-performing loans increasing slightly but remaining manageable at 35 basis points [16][17] Company Strategy and Development Direction - The primary objective for 2026 is to continue delivering solid and consistent financial performance, with expectations of mid to high single-digit loan growth funded by similar deposit growth [19][20] - The company plans to invest in tools, technology, and personnel to support growth while maintaining a stable net interest margin around 3.5% [19][20] Management's Comments on Operating Environment and Future Outlook - Management expressed cautious optimism regarding local economies, with low unemployment levels and a solid quarter for loan growth [26][27] - The company remains focused on organic growth and is open to opportunistic acquisitions, although the current plan is to grow the business organically [43][68] Other Important Information - The company has a buyback plan authorized for over $200 million, which could be utilized if organic growth opportunities do not present themselves [50] - The mortgage warehouse business is expected to be a significant factor in growth, with management optimistic about potential increases in volume if mortgage rates decline [92][95] Q&A Session Summary Question: Can you elaborate on loan growth expectations? - Management indicated cautious optimism based on local economic conditions and strong market positioning in C&I and CRE spaces, with expectations for solid loan growth despite typical seasonal softness in the first quarter [26][27] Question: What are the expectations for operating leverage in 2026? - The company anticipates mid to high single-digit revenue growth with expenses expected to grow at 4%-5%, aiming for positive operating leverage [30][32] Question: How is the competitive landscape affecting growth? - Management noted that disruptions among competitors focusing elsewhere could benefit the company, which differentiates itself through service and local market knowledge [59][60] Question: What is the outlook for the mortgage banking business? - Management remains optimistic about the mortgage market, expecting potential increases in volume if rates decline, while acknowledging the challenges of predicting interest rates [92][94] Question: What are the strategic benefits of operating multiple banking charters? - The company believes that having 16 charters keeps them closer to the market and provides advantages such as deposit insurance, which they do not plan to give up [72][73]

Financial Data and Key Metrics Changes - For full year 2025, the company reported net income of $824 million, up 19% from $695 million in 2024. Earnings per diluted share increased to $11.40 from $10.31 in 2024, and tangible book value rose by over $13 to nearly $89 a share [5][6][10] - Total assets at year-end were just over $71 billion, with fourth quarter net income reaching a record $223 million, up 3% or $7 million from the prior quarter [5][6] Business Line Data and Key Metrics Changes - Loan growth for the fourth quarter was approximately $1 billion, representing 8% growth on an annualized basis, while deposit growth was also $1 billion, reflecting a 7% increase [9][10] - For the full year, loans and deposits grew 11% and 10% respectively, with net interest income reaching a record level due to a $1.1 billion increase in average earning assets and a four basis points increase in net interest margin [9][10][12] Market Data and Key Metrics Changes - The company moved into third position in deposit market share in the Chicago area, with strong gains in Wisconsin and West Michigan [7] - The credit quality remained solid, with non-performing loans increasing slightly but remaining manageable, indicating a stable credit environment [16][17] Company Strategy and Development Direction - The primary objective for 2026 is to continue delivering solid and consistent financial performance, with expectations of mid to high single-digit loan growth funded by similar deposit growth [19][20] - The company plans to invest in tools, technology, and personnel to support growth while maintaining a stable net interest margin around 3.5% [19][20] Management's Comments on Operating Environment and Future Outlook - Management expressed cautious optimism regarding local economies, with low unemployment levels and a solid quarter for loan growth [26][27] - The company remains focused on organic growth, with a disciplined approach to potential acquisitions, and is monitoring the competitive landscape closely [42][43] Other Important Information - The company has a buyback plan of over $200 million authorized, which could be utilized if organic growth opportunities do not present themselves [50] - The mortgage warehouse business is expected to remain stable, with potential upside if the mortgage market improves [75][76] Q&A Session Summary Question: Can you talk about loan growth and what drives mid to high single-digit growth? - Management indicated cautious optimism based on local economic conditions and strong loan growth momentum, despite typical seasonal softness in the first quarter [26][27] Question: What are the expectations for operating leverage and expense plans for 2026? - The company expects revenue growth of 7.5%-8% with expenses growing at 4%-5%, aiming for positive operating leverage [30][31] Question: How is the competitive landscape affecting deposit costs? - Management noted effective management of deposit costs in response to Fed movements and a favorable trend in DDA deposits [36][37] Question: What are the expectations for the mortgage banking outlook? - The company remains optimistic about the mortgage market, anticipating potential increases in volume and gain on sale margins if rates decrease [91][92] Question: What is the company's stance on M&A activity? - The focus remains on organic growth, with opportunistic consideration for smaller acquisitions if they arise [43][44]

Financial Data and Key Metrics Changes - For full year 2025, the company reported net income of $824 million, up 19% from $695 million in 2024. Earnings per diluted share increased to $11.40 from $10.31 in 2024, and tangible book value rose by over $13 to nearly $89 per share. Total assets at year-end were just over $71 billion [4][5]. - The fourth quarter net income was $223 million, a record, up 3% or $7 million from the prior quarter. Net interest income also reached a record level, driven by a $1.1 billion increase in average earning assets and a four basis points increase in net interest margin [4][8]. Business Line Data and Key Metrics Changes - Loan growth for the fourth quarter was approximately $1 billion, representing 8% growth on an annualized basis, while deposit growth was also $1 billion, reflecting a 7% increase over the prior quarter. For the full year, loans and deposits grew 11% and 10%, respectively [8][9]. - Non-interest income totaled $130.4 million in the fourth quarter, slightly down from $130.8 million in the prior quarter, impacted by lower security gains [10]. Market Data and Key Metrics Changes - The company moved into third position in deposit market share in the Chicago area, with strong gains in Wisconsin and West Michigan [5]. - The credit quality remained solid, with non-performing loans increasing slightly but remaining manageable at 35 basis points [14][15]. Company Strategy and Development Direction - The primary objective for 2026 is to continue delivering solid and consistent financial performance, with expectations of mid to high single-digit loan growth funded by a similar level of deposit growth [18][19]. - The company plans to invest in tools, technology, and people to support growth while maintaining a stable net interest margin around 3.5% [18][19]. Management's Comments on Operating Environment and Future Outlook - Management expressed cautious optimism regarding local economies, noting low employment levels and a solid quarter for loan growth. They anticipate that the first quarter may be softer but expect to meet targets in the first half of the year [23][24]. - The management team remains focused on organic growth and is open to acquisitions if opportunities arise, but the current plan is to grow the business organically [40][46]. Other Important Information - The company has a buyback plan authorized for over $200 million, which could be utilized if organic growth opportunities do not require it [46]. - The company continues to monitor its exposure to commercial real estate loans, which comprise roughly one quarter of its total portfolio, and sees signs of stabilization in this area [15][17]. Q&A Session Summary Question: Can you talk about loan growth and what drives it? - Management expressed cautious optimism about local economies and noted broad-based loan growth, with expectations for solid performance in the first half of the year despite typical seasonality [22][23]. Question: What are the expectations for operating leverage and expenses in 2026? - Management expects mid to high single-digit revenue growth with expenses growing in the 4%-5% range, aiming for positive operating leverage [26][28]. Question: Can you discuss deposit costs and growth drivers? - Management highlighted effective management of deposit costs and noted that growth mainly came from non-maturity deposits, with a minor benefit expected from CD repricing [32][34]. Question: What areas are not meeting expectations? - Management indicated that the mortgage business could be stronger and emphasized a disciplined approach to commercial activity [38]. Question: Is there any appetite for M&A outside of organic growth? - Management stated that while they are focused on organic growth, they remain opportunistic regarding acquisitions in other Midwest geographies [65]. Question: What are the strategic benefits of operating multiple banking charters? - Management believes that having 16 charters keeps them closer to the market and provides valuable benefits, including deposit insurance and market share advantages [70][71].

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Wintrust Financial Corporation Earnings Release Presentation Q4 2025 Forward Looking Statements This document contains forward-looking statements within the meaning of federal securities laws. Forward-looking information can be identified through the use of words such as "intend," "plan," "project," "expect," "anticipate," "believe," "estimate," "contemplate," "possible," "will," "may," "should," "would" and "could." Forward-looking statements and information are not historical facts, are premised on many f ...