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WTFC

Wintrust Financial NasdaqGS:WTFC Stock Report

Last Price

US$82.28

Market Cap

US$5.0b

7D

-3.9%

1Y

2.4%

Updated

28 Sep, 2022

Data

Company Financials +
WTFC fundamental analysis
Snowflake Score
Valuation5/6
Future Growth3/6
Past Performance2/6
Financial Health6/6
Dividends4/6

WTFC Stock Overview

Wintrust Financial Corporation operates as a financial holding company.

Wintrust Financial Competitors

Price History & Performance

Summary of all time highs, changes and price drops for Wintrust Financial
Historical stock prices
Current Share PriceUS$82.28
52 Week HighUS$105.56
52 Week LowUS$76.13
Beta1.24
1 Month Change-3.04%
3 Month Change2.66%
1 Year Change2.35%
3 Year Change32.69%
5 Year Change6.25%
Change since IPO814.22%

Recent News & Updates

Sep 08

Wintrust Financial: Loan Additions To Play Key Role In Earnings Growth

Summary Signs of economic expansion will likely sustain loan growth at a decent level through the end of 2023. An overwhelming 77% of total loans will re-price within a year. Therefore, the margin will benefit from higher interest rates this year. The high inflation environment will likely keep provisioning for expected loan losses above normal for the remainder of this year. The December 2022 target price suggests a high upside from the current market price. However, WTFC is offering a low dividend yield. Earnings of Wintrust Financial Corporation (WTFC) will likely remain flattish this year before increasing next year. Loan growth will likely play a pivotal role in boosting earnings through the end of 2023. Further, the moderately rate-sensitive margin will benefit from the rising-rate environment. On the other hand, the provisioning expense will likely remain above normal during the second half of 2022, which will drag earnings. Overall, I'm expecting Wintrust Financial to report earnings of $7.41 per share for 2022, down by just 2% year-over-year. Compared to my last report on the company, I've increased my earnings estimate mostly because I've revised upward the loan growth estimate following the second quarter's phenomenal performance. For 2023, I'm expecting the company to report earnings of $8.78 per share, up 18% year-over-year. The year-end target price suggests a high upside from the current market price. Therefore, I'm maintaining a buy rating on Wintrust Financial. Loan Growth to Decelerate Wintrust Financial's loan book grew by a remarkable 5.1% in the second quarter of 2022, or 20% annualized, which beat my expectations. Growth will most probably slow down in the remainder of the year as the second quarter’s growth rate is unusual for the company given its history. Further, higher interest rates will dampen credit demand. The upper limit of the Fed funds rate is now at 2.5%, as opposed to the average of 0.96% during the second quarter of 2022. Moreover, the management also mentioned in the latest conference call that it expects lower, mid-to-high-single-digit loan growth for the remainder of the year. However, certain economic factors other than interest rates can sustain loan growth. Wintrust Financial’s loan portfolio is well-diversified geographically, but by loan segments, it's concentrated in commercial and commercial real estate loans. Therefore, the purchasing managers' index is a good gauge of credit demand. As shown below, both the services and manufacturing indices are above 50, which indicates that economic activity is expanding. US ISM Services PMI data by YCharts Moreover, the commercial line utilization is still much below the pre-pandemic level. This means there is an opportunity for loan growth. 2Q 2022 Earnings Presentation Considering these factors, I'm expecting the loan portfolio to grow by 9% (annualized) every quarter till the end of 2023. In my last report as well, I estimated loan growth of 9% (annualized) a quarter. However, I've significantly increased the full-year loan growth estimate for 2022 because of the surprising performance in the second quarter of 2022. Meanwhile, I'm expecting other balance sheet items to grow in line with loans. The following table shows my balance sheet estimates. FY18 FY19 FY20 FY21 FY22E FY23E Financial Position Net Loans 23,668 26,643 31,760 34,541 38,476 42,058 Growth of Net Loans 10.1% 12.6% 19.2% 8.8% 11.4% 9.3% Other Earning Assets 4,685 6,935 9,801 12,252 11,363 12,421 Deposits 26,095 30,107 37,093 42,096 44,532 48,677 Borrowings and Sub-Debt 1,213 1,783 2,638 2,426 2,446 2,674 Common equity 3,143 3,566 3,703 4,086 4,503 4,935 Book Value Per Share ($) 55 62 64 71 77 84 Tangible BVPS ($) 44 50 52 59 65 72 Source: SEC Filings, Author's Estimates (In USD million unless otherwise specified) Variable-Rate Heavy Loan Portfolio Makes the Margin Moderately Rate Sensitive Around 77% of total loans will re-price or mature within one year, according to details given in the earnings presentation. This proportion of loans includes variable-rate loans which made up 60% of total loans. On the other hand, the large balance of investment securities will hold back the average earning-asset yield in a rising-rate environment. The securities portfolio, which made up 13% of total earning assets, had a long duration of 7.42 years, according to details given in the presentation. As a result, it can be safely assumed that most of the portfolio will not re-price upwards this year as market interest rates rise. Further, interest-bearing deposits, excluding certificates of deposits, made up a sizable 58.8% of total deposits at the end of June 2022. These deposits will re-price soon after every rate hike. The results of the management’s interest-rate sensitivity analysis given in the presentation showed that a 100-basis points hike in interest rates can boost the net interest income by a moderate 5.3% over twelve months. 2Q 2022 Earnings Presentation Considering these factors, I'm expecting the margin to grow by 20 basis points in the second half of 2022. As I'm expecting interest rates to plateau in early 2023 before declining in the latter part of next year, I'm anticipating the net interest margin to remain almost unchanged next year. Provisioning to be Above Normal in the Second Half of 2022 Non-performing loans were 0.20% of total loans, while allowances were 0.68% of total loans at the end of June 2022. This coverage seems a bit tight in light of a high inflation environment which is proving to be stressful for borrowers. Therefore, I'm expecting the provision expenses to be higher than normal in the last two quarters of 2022. Further, the anticipated loan additions will require additional provisioning for expected loan losses. Considering these factors, I'm expecting a net provision expense of around 0.31% (annualized) of total loans in the second half of 2022, which is higher than the historical average. For 2023, I'm expecting the net provision expense to make up 0.19% of total loans, which is close to the last five-year average. Expecting Flattish Earnings for 2022 The anticipated loan growth and margin expansion will likely support an increase in earnings this year and the next. On the other hand, higher provision expenses will likely drag earnings this year. Overall, I'm expecting Wintrust Financial to report earnings of $7.41 per share for 2022, down by just 2% year-over-year. For 2023, I'm expecting earnings to increase by 18% to $8.78 per share. The following table shows my income statement estimates. FY18 FY19 FY20 FY21 FY22E FY23E Income Statement Net interest income 965 1,055 1,040 1,125 1,370 1,592 Provision for loan losses 35 54 214 (59) 85 80 Non-interest income 356 407 604 586 524 495 Non-interest expense 826 928 1,040 1,133 1,177 1,272 Net income - Common Sh. 335 347 272 438 436 516 EPS - Diluted ($) 5.86 6.03 4.68 7.58 7.41 8.78 Source: SEC Filings, Author's Estimates (In USD million unless otherwise specified) In my last report on Wintrust Financial, I estimated earnings of $7.03 per share for 2022. I've increased my earnings estimate because I've revised upwards my loan growth estimate following the second quarter's phenomenal performance. Further, I've reduced my non-interest expense estimate because the company has shown greater expense discipline than I anticipated so far this year.

Jul 20

Wintrust Financial GAAP EPS of $1.49 misses by $0.21, revenue of $440.75M misses by $9.18M

Wintrust Financial press release (NASDAQ:WTFC): Q2 GAAP EPS of $1.49 misses by $0.21. Revenue of $440.75M (+7.8% Y/Y) misses by $9.18M. The Company recorded $1.1 million of fees from covered call options in the second quarter of 2022 as compared to $3.7 million in the first quarter of 2022.  In June 2022, the Company sold through a public offering a total of 3,450,000 shares of its common stock. Net proceeds to the Company totaled approximately $285.7 million, net of estimated issuance costs.

Shareholder Returns

WTFCUS BanksUS Market
7D-3.9%-4.5%-2.0%
1Y2.4%-23.8%-20.3%

Return vs Industry: WTFC exceeded the US Banks industry which returned -24.8% over the past year.

Return vs Market: WTFC exceeded the US Market which returned -22.1% over the past year.

Price Volatility

Is WTFC's price volatile compared to industry and market?
WTFC volatility
WTFC Average Weekly Movement3.5%
Banks Industry Average Movement3.4%
Market Average Movement6.9%
10% most volatile stocks in US Market15.8%
10% least volatile stocks in US Market2.8%

Stable Share Price: WTFC is less volatile than 75% of US stocks over the past 3 months, typically moving +/- 4% a week.

Volatility Over Time: WTFC's weekly volatility (4%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
19915,239Ed Wehmerhttps://www.wintrust.com

Wintrust Financial Corporation operates as a financial holding company. It operates in three segments: Community Banking, Specialty Finance, and Wealth Management. The Community Banking segment offers non-interest bearing deposits, non-brokered interest-bearing transaction accounts, and savings and domestic time deposits; home equity, consumer, and real estate loans; safe deposit facilities; and automatic teller machine (ATM), online and mobile banking, and other services.

Wintrust Financial Fundamentals Summary

How do Wintrust Financial's earnings and revenue compare to its market cap?
WTFC fundamental statistics
Market CapUS$5.00b
Earnings (TTM)US$401.83m
Revenue (TTM)US$1.72b

12.4x

P/E Ratio

1.2x

P/B Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
WTFC income statement (TTM)
RevenueUS$1.72b
Cost of RevenueUS$0
Gross ProfitUS$1.72b
Other ExpensesUS$1.32b
EarningsUS$401.83m

Last Reported Earnings

Jun 30, 2022

Next Earnings Date

n/a

Earnings per share (EPS)6.62
Gross Margin100.00%
Net Profit Margin23.31%
Debt/Equity Ratio53.0%

How did WTFC perform over the long term?

See historical performance and comparison

Dividends

1.7%

Current Dividend Yield

19%

Payout Ratio
We’ve recently updated our valuation analysis.

Valuation

Is WTFC undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

5/6

Valuation Score 5/6

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Below Fair Value

  • Significantly Below Fair Value

  • Analyst Forecast

Key Valuation Metric

Which metric is best to use when looking at relative valuation for WTFC?

Other financial metrics that can be useful for relative valuation.

WTFC key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenuen/a
Enterprise Value/EBITDAn/a
PEG Ratio0.8x

Price to Earnings Ratio vs Peers

How does WTFC's PE Ratio compare to its peers?

WTFC PE Ratio vs Peers
The above table shows the PE ratio for WTFC vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyPEEstimated GrowthMarket Cap
Peer Average13.3x
OZK Bank OZK
8.8x1.2%US$4.8b
BPOP Popular
6.1x-10.2%US$5.3b
CADE Cadence Bank
17.5x21.7%US$4.7b
GBCI Glacier Bancorp
20.8x16.1%US$5.6b
WTFC Wintrust Financial
12.4x16.0%US$5.0b

Price-To-Earnings vs Peers: WTFC is good value based on its Price-To-Earnings Ratio (12.4x) compared to the peer average (13.3x).


Price to Earnings Ratio vs Industry

How does WTFC's PE Ratio compare vs other companies in the US Banks Industry?

Price-To-Earnings vs Industry: WTFC is expensive based on its Price-To-Earnings Ratio (12.4x) compared to the US Banks industry average (9.5x)


Price to Earnings Ratio vs Fair Ratio

What is WTFC's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

WTFC PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio12.4x
Fair PE Ratio15.7x

Price-To-Earnings vs Fair Ratio: WTFC is good value based on its Price-To-Earnings Ratio (12.4x) compared to the estimated Fair Price-To-Earnings Ratio (15.7x).


Share Price vs Fair Value

What is the Fair Price of WTFC when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: WTFC ($82.28) is trading below our estimate of fair value ($211.72)

Significantly Below Fair Value: WTFC is trading below fair value by more than 20%.


Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

Analyst Forecast: Target price is more than 20% higher than the current share price and analysts are within a statistically confident range of agreement.


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Future Growth

How is Wintrust Financial forecast to perform in the next 1 to 3 years based on estimates from 10 analysts?

Future Growth Score

3/6

Future Growth Score 3/6

  • Earnings vs Savings Rate

  • Earnings vs Market

  • High Growth Earnings

  • Revenue vs Market

  • High Growth Revenue

  • Future ROE


16.0%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: WTFC's forecast earnings growth (16% per year) is above the savings rate (1.9%).

Earnings vs Market: WTFC's earnings (16% per year) are forecast to grow faster than the US market (14.8% per year).

High Growth Earnings: WTFC's earnings are forecast to grow, but not significantly.

Revenue vs Market: WTFC's revenue (11% per year) is forecast to grow faster than the US market (7.6% per year).

High Growth Revenue: WTFC's revenue (11% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: WTFC's Return on Equity is forecast to be low in 3 years time (11.8%).


Discover growth companies

Past Performance

How has Wintrust Financial performed over the past 5 years?

Past Performance Score

2/6

Past Performance Score 2/6

  • Quality Earnings

  • Growing Profit Margin

  • Earnings Trend

  • Accelerating Growth

  • Earnings vs Industry

  • High ROE


10.3%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: WTFC has high quality earnings.

Growing Profit Margin: WTFC's current net profit margins (23.3%) are lower than last year (25.2%).


Past Earnings Growth Analysis

Earnings Trend: WTFC's earnings have grown by 10.3% per year over the past 5 years.

Accelerating Growth: WTFC's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: WTFC had negative earnings growth (-7.7%) over the past year, making it difficult to compare to the Banks industry average (8.7%).


Return on Equity

High ROE: WTFC's Return on Equity (9.1%) is considered low.


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Financial Health

How is Wintrust Financial's financial position? (This company is analysed differently as a bank or financial institution)

Financial Health Score

6/6

Financial Health Score 6/6

  • Asset Level

  • Allowance for Bad Loans

  • Low Risk Liabilities

  • Loan Level

  • Low Risk Deposits

  • Level of Bad Loans

Financial Position Analysis


Debt to Equity History and Analysis


Balance Sheet


Financial Institutions Analysis

Asset Level: WTFC's Assets to Equity ratio (10.8x) is moderate.

Allowance for Bad Loans: WTFC has a sufficient allowance for bad loans (348%).

Low Risk Liabilities: 92% of WTFC's liabilities are made up of primarily low risk sources of funding.

Loan Level: WTFC has an appropriate level of Loans to Assets ratio (73%).

Low Risk Deposits: WTFC's Loans to Deposits ratio (87%) is appropriate.

Level of Bad Loans: WTFC has an appropriate level of bad loans (0.2%).


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Dividend

What is Wintrust Financial current dividend yield, its reliability and sustainability?

Dividend Score

4/6

Dividend Score 4/6

  • Notable Dividend

  • High Dividend

  • Stable Dividend

  • Growing Dividend

  • Earnings Coverage

  • Future Dividend Coverage


1.65%

Current Dividend Yield

Dividend Yield vs Market

Wintrust Financial Dividend Yield vs Market
How does Wintrust Financial dividend yield compare to the market?
SegmentDividend Yield
Company (Wintrust Financial)1.7%
Market Bottom 25% (US)1.6%
Market Top 25% (US)4.6%
Industry Average (Banks)3.4%
Analyst forecast in 3 Years (Wintrust Financial)1.7%

Notable Dividend: WTFC's dividend (1.65%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.67%).

High Dividend: WTFC's dividend (1.65%) is low compared to the top 25% of dividend payers in the US market (4.69%).


Stability and Growth of Payments

Stable Dividend: WTFC's dividends per share have been stable in the past 10 years.

Growing Dividend: WTFC's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Earnings Coverage: With its low payout ratio (18.5%), WTFC's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: WTFC's dividends in 3 years are forecast to be thoroughly covered by earnings (14.9% payout ratio).


Discover strong dividend paying companies

Management

How experienced are the management team and are they aligned to shareholders interests?

7.0yrs

Average management tenure


CEO

Ed Wehmer (68 yo)

26.67yrs

Tenure

US$7,140,312

Compensation

Mr. Edward Joseph Wehmer, also known as Ed, is Founder, Chief Executive Officer and Director at Wintrust Financial Corporation since February 02, 2020. He serves as Director at Stepan Company. He had been...


CEO Compensation Analysis

Ed Wehmer's Compensation vs Wintrust Financial Earnings
How has Ed Wehmer's remuneration changed compared to Wintrust Financial's earnings?
DateTotal Comp.SalaryCompany Earnings
Jun 30 2022n/an/a

US$402m

Mar 31 2022n/an/a

US$412m

Dec 31 2021US$7mUS$1m

US$438m

Sep 30 2021n/an/a

US$441m

Jun 30 2021n/an/a

US$436m

Mar 31 2021n/an/a

US$357m

Dec 31 2020US$6mUS$1m

US$272m

Sep 30 2020n/an/a

US$261m

Jun 30 2020n/an/a

US$261m

Mar 31 2020n/an/a

US$321m

Dec 31 2019US$5mUS$1m

US$347m

Sep 30 2019n/an/a

US$341m

Jun 30 2019n/an/a

US$334m

Mar 31 2019n/an/a

US$342m

Dec 31 2018US$5mUS$1m

US$335m

Sep 30 2018n/an/a

US$324m

Jun 30 2018n/an/a

US$298m

Mar 31 2018n/an/a

US$273m

Dec 31 2017US$4mUS$1m

US$248m

Sep 30 2017n/an/a

US$232m

Jun 30 2017n/an/a

US$218m

Mar 31 2017n/an/a

US$202m

Dec 31 2016US$4mUS$1m

US$192m

Sep 30 2016n/an/a

US$173m

Jun 30 2016n/an/a

US$158m

Mar 31 2016n/an/a

US$154m

Dec 31 2015US$3mUS$1m

US$146m

Compensation vs Market: Ed's total compensation ($USD7.14M) is about average for companies of similar size in the US market ($USD8.63M).

Compensation vs Earnings: Ed's compensation has increased by more than 20% whilst company earnings have fallen more than 20% in the past year.


Leadership Team

Experienced Management: WTFC's management team is seasoned and experienced (7 years average tenure).


Board Members

Experienced Board: WTFC's board of directors are considered experienced (7.3 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

NasdaqGS:WTFC Recent Insider Transactions by Companies or Individuals
DateValueNameEntityRoleSharesMax Price
26 Apr 22BuyUS$456,150H. HackettIndividual5,000US$91.23
08 Dec 21BuyUS$403,245Alex WashingtonIndividual4,500US$89.61
25 Oct 21SellUS$200,182Richard MurphyIndividual2,174US$92.08

Ownership Breakdown

What is the ownership structure of WTFC?
Owner TypeNumber of SharesOwnership Percentage
State or Government25,3430.04%
Individual Insiders776,8031.3%
General Public2,175,6643.6%
Institutions57,758,47595.1%

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 6.5%.


Top Shareholders

Top 25 shareholders own 61.7% of the company
OwnershipNameSharesCurrent ValueChange %Portfolio %
9.59%
BlackRock, Inc.
5,826,007$479.4m4.16%0.01%
9.58%
The Vanguard Group, Inc.
5,818,463$478.7m9.04%0.01%
5.7%
FMR LLC
3,463,317$285.0m12.64%0.03%
4.05%
State Street Global Advisors, Inc.
2,458,075$202.3m-9.84%0.01%
3.99%
Dimensional Fund Advisors LP
2,423,490$199.4m-6.5%0.05%
3.48%
Victory Capital Management Inc.
2,116,222$174.1m4.29%0.19%
2.51%
J.P. Morgan Asset Management, Inc.
1,521,677$125.2m2.75%0.02%
2.18%
AllianceBernstein L.P.
1,324,800$109.0m18.34%0.05%
2.16%
Citadel Advisors LLC
1,311,650$107.9m119.98%0.17%
2.02%
Massachusetts Financial Services Company
1,225,884$100.9m-18.18%0.03%
1.72%
Hermes Investment Management Limited
1,046,757$86.1m-3.01%0.55%
1.34%
Geode Capital Management, LLC
813,496$66.9m4.12%0.01%
1.3%
Eaton Vance Management
789,122$64.9m2.19%0.02%
1.17%
Fisher Asset Management, LLC
710,113$58.4m9.18%0.04%
1.14%
Kempen Capital Management N.V.
692,499$57.0m7.74%1.15%
1.1%
Millennium Management LLC
669,179$55.1m37.47%0.07%
1.08%
Frontier Capital Management Co LLC
656,246$54.0m-13.03%0.54%
1.04%
BNY Mellon Asset Management
633,168$52.1m5.46%0.01%
1.01%
Invesco Ltd.
616,120$50.7m22.41%0.02%
1.01%
American Century Investment Management Inc
612,362$50.4m11.26%0.04%
0.96%
Premier Fund Managers Limited
580,901$47.8m0.03%0.56%
0.95%
Miton Capital Partners Limited
577,376$47.5m0%3.24%
0.91%
Norges Bank Investment Management
554,707$45.6m0%0.01%
0.87%
Schonfeld Strategic Advisors LLC
527,313$43.4m0%0.47%
0.83%
Balyasny Asset Management L.P.
503,391$41.4m2800.89%0.19%

Company Information

Wintrust Financial Corporation's employee growth, exchange listings and data sources


Key Information

  • Name: Wintrust Financial Corporation
  • Ticker: WTFC
  • Exchange: NasdaqGS
  • Founded: 1991
  • Industry: Regional Banks
  • Sector: Banks
  • Implied Market Cap: US$4.997b
  • Shares outstanding: 60.74m
  • Website: https://www.wintrust.com

Number of Employees


Location

  • Wintrust Financial Corporation
  • 9700 West Higgins Road
  • Suite 800
  • Rosemont
  • Illinois
  • 60018
  • United States


Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
WTFCNasdaqGS (Nasdaq Global Select)YesCommon StockUSUSDSep 1996
WF2DB (Deutsche Boerse AG)YesCommon StockDEEURSep 1996
WTFC.MNasdaqGS (Nasdaq Global Select)PFD-D FIX/FLTUSUSDJun 2015
WTFC.PNasdaqGS (Nasdaq Global Select)6.875 DP SH PF EUSUSDMay 2020

Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/09/28 00:00
End of Day Share Price2022/09/28 00:00
Earnings2022/06/30
Annual Earnings2021/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.