WTFC Stock Overview
Wintrust Financial Corporation operates as a financial holding company.
Wintrust Financial Competitors
Price History & Performance
|Historical stock prices|
|Current Share Price||US$82.28|
|52 Week High||US$105.56|
|52 Week Low||US$76.13|
|1 Month Change||-3.04%|
|3 Month Change||2.66%|
|1 Year Change||2.35%|
|3 Year Change||32.69%|
|5 Year Change||6.25%|
|Change since IPO||814.22%|
Recent News & Updates
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.
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.
|WTFC||US Banks||US Market|
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.
|WTFC Average Weekly Movement||3.5%|
|Banks Industry Average Movement||3.4%|
|Market Average Movement||6.9%|
|10% most volatile stocks in US Market||15.8%|
|10% least volatile stocks in US Market||2.8%|
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
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
|WTFC fundamental statistics|
Is WTFC overvalued?See Fair Value and valuation analysis
Earnings & Revenue
|WTFC income statement (TTM)|
|Cost of Revenue||US$0|
Last Reported Earnings
Jun 30, 2022
Next Earnings Date
|Earnings per share (EPS)||6.62|
|Net Profit Margin||23.31%|
How did WTFC perform over the long term?See historical performance and comparison
1.7%Current Dividend Yield
Is WTFC undervalued compared to its fair value, analyst forecasts and its price relative to the market?
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
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.
|What is WTFC's n/a Ratio?|
Price to Earnings Ratio vs Peers
How does WTFC's PE Ratio compare to its peers?
|WTFC PE Ratio vs Peers|
|Company||PE||Estimated Growth||Market Cap|
OZK Bank OZK
CADE Cadence Bank
GBCI Glacier Bancorp
WTFC Wintrust Financial
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.
|Current PE Ratio||12.4x|
|Fair PE Ratio||15.7x|
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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How is Wintrust Financial forecast to perform in the next 1 to 3 years based on estimates from 10 analysts?
Future Growth Score3/6
Future Growth Score 3/6
Earnings vs Savings Rate
Earnings vs Market
High Growth Earnings
Revenue vs Market
High Growth Revenue
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%).
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How has Wintrust Financial performed over the past 5 years?
Past Performance Score2/6
Past Performance Score 2/6
Growing Profit Margin
Earnings vs Industry
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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How is Wintrust Financial's financial position? (This company is analysed differently as a bank or financial institution)
Financial Health Score6/6
Financial Health Score 6/6
Allowance for Bad Loans
Low Risk Liabilities
Low Risk Deposits
Level of Bad Loans
Financial Position Analysis
Debt to Equity History and Analysis
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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What is Wintrust Financial current dividend yield, its reliability and sustainability?
Dividend Score 4/6
Future Dividend Coverage
Current Dividend Yield
Dividend Yield vs Market
|Wintrust Financial Dividend Yield vs Market|
|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).
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How experienced are the management team and are they aligned to shareholders interests?
Average management tenure
Ed Wehmer (68 yo)
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|
|Date||Total Comp.||Salary||Company Earnings|
|Jun 30 2022||n/a||n/a|
|Mar 31 2022||n/a||n/a|
|Dec 31 2021||US$7m||US$1m|
|Sep 30 2021||n/a||n/a|
|Jun 30 2021||n/a||n/a|
|Mar 31 2021||n/a||n/a|
|Dec 31 2020||US$6m||US$1m|
|Sep 30 2020||n/a||n/a|
|Jun 30 2020||n/a||n/a|
|Mar 31 2020||n/a||n/a|
|Dec 31 2019||US$5m||US$1m|
|Sep 30 2019||n/a||n/a|
|Jun 30 2019||n/a||n/a|
|Mar 31 2019||n/a||n/a|
|Dec 31 2018||US$5m||US$1m|
|Sep 30 2018||n/a||n/a|
|Jun 30 2018||n/a||n/a|
|Mar 31 2018||n/a||n/a|
|Dec 31 2017||US$4m||US$1m|
|Sep 30 2017||n/a||n/a|
|Jun 30 2017||n/a||n/a|
|Mar 31 2017||n/a||n/a|
|Dec 31 2016||US$4m||US$1m|
|Sep 30 2016||n/a||n/a|
|Jun 30 2016||n/a||n/a|
|Mar 31 2016||n/a||n/a|
|Dec 31 2015||US$3m||US$1m|
Compensation vs Market: Ed's total compensation ($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.
Experienced Management: WTFC's management team is seasoned and experienced (7 years average tenure).
Experienced Board: WTFC's board of directors are considered experienced (7.3 years average tenure).
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
|26 Apr 22||BuyUS$456,150||H. Hackett||Individual||5,000||US$91.23|
|08 Dec 21||BuyUS$403,245||Alex Washington||Individual||4,500||US$89.61|
|25 Oct 21||SellUS$200,182||Richard Murphy||Individual||2,174||US$92.08|
|Owner Type||Number of Shares||Ownership Percentage|
|State or Government||25,343||0.04%|
Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 6.5%.
|Ownership||Name||Shares||Current Value||Change %||Portfolio %|
Wintrust Financial Corporation's employee growth, exchange listings and data sources
- 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
- Wintrust Financial Corporation
- 9700 West Higgins Road
- Suite 800
- United States
|Ticker||Exchange||Primary Security||Security Type||Country||Currency||Listed on|
|WTFC||NasdaqGS (Nasdaq Global Select)||Yes||Common Stock||US||USD||Sep 1996|
|WF2||DB (Deutsche Boerse AG)||Yes||Common Stock||DE||EUR||Sep 1996|
|WTFC.M||NasdaqGS (Nasdaq Global Select)||PFD-D FIX/FLT||US||USD||Jun 2015|
|WTFC.P||NasdaqGS (Nasdaq Global Select)||6.875 DP SH PF E||US||USD||May 2020|
Company Analysis and Financial Data Status
|Data||Last Updated (UTC time)|
|Company Analysis||2022/09/28 00:00|
|End of Day Share Price||2022/09/28 00:00|
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.