Core Insights - Regional banks are reaching all-time highs, with lesser-known names like Citizens Financial Group, East West Bancorp, and Wintrust Financial Corporation leading the charge [1][2]. Group 1: Citizens Financial Group - Citizens Financial Group operates in the Eastern and Midwestern United States, offering a range of banking services, and currently trades at a forward P/E ratio of about 12 [5]. - The bank has a market capitalization of $25 billion and is expected to see earnings growth of over 31% next year, increasing from $3.83 to $5.03 per share, which could lead to a price surge [7]. - Factors such as an increasing net interest margin are contributing to Wall Street's positive outlook on Citizens Financial Group [7]. Group 2: East West Bancorp - East West Bancorp, based in Pasadena, California, has expanded from serving the Chinese-American community to becoming a major regional bank with branches across the West Coast and in Asia [8]. - The bank has a market cap of $15 billion and trades at 13.6 times forward earnings estimates, with analysts projecting a 6.7% increase in earnings next year [10]. - East West Bancorp has a forward dividend yield of about 2%, with dividends increasing by an average annual rate of 17% over the past five years, which may support its high valuation [11]. Group 3: Wintrust Financial Corporation - Wintrust, based in Rosemont, Illinois, operates in the Greater Chicago area and Southwest Florida, and is nearing historical highs [12]. - The bank has a market cap of $9.4 billion and trades at a reasonable 12 times forward earnings estimates, with expected earnings growth of only 4.3% next year [13]. - Wintrust has a forward dividend yield of 1.4%, with quarterly dividends growing by an average of 12.3% annually over the past five years, indicating potential for further stock price increases [14].

Core Viewpoint - Wintrust Financial Corporation will announce its fourth quarter and full year 2025 earnings results on January 20, 2026, after market close, followed by a conference call on January 21, 2026, at 10:00 a.m. CST [1] Group 1 - Individuals can participate in the conference call by registering to receive a dial-in number and unique PIN, with a recommendation to join 10 minutes prior to the start [2] - An accompanying slide presentation will be available on the company's website under the Investor Relations section [2] Group 2 - A replay of the audio-only webcast and the accompanying slide presentation will be accessible on the company's website after the event [3] - The text of the earnings release will also be available on the company's website under the Investor Relations section [3] Group 3 - Wintrust is a financial holding company with approximately $70 billion in assets, offering a community banking experience through over 200 retail banking locations across several states [4] - The company operates various non-bank business units, including residential mortgage origination, wealth management, and commercial insurance premium financing [4]

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Financial Performance - For the three months ended September 30, 2025, the total interest income was $952,408,000, an increase from $898,295,000 for the same period in 2024, representing a growth of approximately 6%[97] - Net interest income for the three months ended September 30, 2025, was $567,010,000, up from $502,583,000 in the prior year, reflecting an increase of about 12.8%[97] - For the nine months ended September 30, 2025, net income was $600,820,000, an increase from $509,683,000 in the same period of 2024, representing a growth of approximately 17.9%[98] - The income before taxes for the three months ended September 30, 2025, was $296,041,000, up from $232,709,000 in the same period of 2024, indicating an increase of approximately 27.2%[97] - Net income for the three months ended September 30, 2025, was $216,254,000, compared to $170,001,000 for the same period in 2024, representing a 27.2% increase[171] - The company reported a net income applicable to common shares of $188,913,000 for the three months ended September 30, 2025, compared to $163,010,000 for the same period in 2024, a 15.8% increase[171] Asset and Liability Management - Total assets at the end of the period on September 30, 2025, were $69,629,638,000, up from $63,788,424,000 a year earlier, indicating a growth of about 9.5%[97] - The total non-interest expense for the three months ended September 30, 2025, was $380,028,000, compared to $360,687,000 in the prior year, reflecting an increase of about 5.3%[97] - Total financial liabilities reached $61,205,278 thousand, with a fair value of $61,242,314 thousand as of September 30, 2025[156] - The aggregate remaining contractual principal balance for loans held-for-investment was $126.4 million as of September 30, 2025, with a fair value of $129.6 million[147] Derivative Financial Instruments - The company utilizes various derivative financial instruments, including interest rate swaps and options, to manage interest rate risk and enhance yield on securities[99][100][101] - The company recognizes derivative financial instruments at fair value in its consolidated financial statements, impacting either income or shareholders' equity depending on hedge accounting qualifications[102] - As of September 30, 2025, the fair value of the Company's derivative financial instruments totaled $208.957 million, compared to $200.027 million as of December 31, 2024, and $255.662 million as of September 30, 2024[104] - The Company had $65.300 million in derivatives designated as hedging instruments under ASC 815 as of September 30, 2025, an increase from $17.330 million in December 31, 2024[104] - Interest rate derivatives designated as cash flow hedges amounted to $59.667 million as of September 30, 2025, significantly up from $7.329 million as of December 31, 2024[104] - The total cash flow hedges had a notional amount of $7.1 billion with a fair value of $54.717 million as of September 30, 2025[108] - The Company expects to reclassify $22.8 million from accumulated other comprehensive income to net interest income over the next 12 months[111] - The Company terminated interest rate swap derivative contracts with a total notional value of $1.5 billion in 2022, resulting in a fair value adjustment of $77.2 million recorded in accumulated other comprehensive income[109][110] Credit Losses and Risk Management - The provision for credit losses for the three months ended September 30, 2025, was $21,768,000, slightly down from $22,334,000 in the same period of 2024[97] - The Company’s counterparty credit risk is managed through established exposure limits and ongoing monitoring of financial performance[126] - There is a risk of increased delinquencies and declines in real estate values, which may necessitate further increases in the company's allowance for credit losses[292] - The company faces challenges related to the accuracy and completeness of customer information used for credit decisions[292] Stock and Shareholder Information - Stock-based compensation expense for Q3 2025 was $10.1 million, compared to $9.5 million in Q3 2024, marking a year-over-year increase of 6.3%[165] - The aggregate intrinsic value of options exercised in the nine months ended September 30, 2025, was approximately $467,000, significantly higher than $50,000 in the same period of 2024[167] - Outstanding restricted shares as of September 30, 2025, were 895,196 shares, with a weighted average grant-date fair value of $101.71[168] - Basic earnings per share for the three months ended September 30, 2025, was $2.82, up from $2.51 in the same period of 2024, reflecting a 12.3% increase[171] - The company declared a quarterly cash dividend of $0.50 per share, amounting to an annualized dividend of $2.00, paid on February 20, 2025[172] Comprehensive Income and Other Financial Metrics - The accumulated other comprehensive income (loss) balance at September 30, 2025, was $(314,808,000), a decrease from $(366,233,000) at July 1, 2025[169] - The net other comprehensive income during the period, net of tax, was $51,425,000 for the three months ended September 30, 2025[169] - The total amount reclassified from accumulated other comprehensive income into net income, net of tax, was $3,723,000 for the three months ended September 30, 2025[170] Future Outlook and Risks - The company anticipates future growth through potential acquisitions and internal growth strategies, as indicated in its forward-looking statements[291] - The company is facing competitive pressures in the financial services sector, which may affect loan and deposit pricing, potentially leading to a loss of market share and reduced income from various products[292] - The company is concerned about the impact of changes in interest rates on net interest income and net interest margin, which could adversely affect profitability[292] - The company may encounter difficulties in identifying and completing favorable acquisitions, which could lead to unexpected losses[292] - There are potential risks associated with cybersecurity, including breaches and data corruption attempts, which could impact the company's operations[292] - The company is subject to regulatory changes that may affect its ability to market products and operate profitably in the mortgage business[292] - The company may experience increased costs related to compliance and regulatory capital requirements[292]

Core Viewpoint - Wintrust Financial Inc. (NASDAQ:WTFC) has shown a mixed performance in its stock price, with a recent increase but a decline over the past month, while experiencing a year-over-year growth of 12.56% [1] Group 1: Stock Performance - The current share price of Wintrust Financial is $130.00, reflecting a 0.74% increase in the current market session [1] - Over the past month, the stock has decreased by 1.68%, but it has increased by 12.56% over the past year [1] Group 2: Valuation Metrics - Wintrust Financial has a lower P/E ratio compared to the aggregate P/E of 12.02 for the Banks industry, which may suggest that the stock is undervalued [5][6] - A lower P/E ratio could indicate that shareholders do not expect the stock to perform better in the future, but it may also reflect undervaluation [6] Group 3: P/E Ratio Analysis - The P/E ratio is a useful metric for assessing market performance, but it has limitations and should not be used in isolation [10] - Other factors such as industry trends and business cycles can also impact a company's stock price, necessitating a comprehensive analysis alongside the P/E ratio [10]

Financial Data and Key Metrics Changes - Wintrust reported a record net income of $216 million for Q3 2025, up from over $195 million in the previous quarter, representing an increase of almost 11% quarter over quarter [4] - Net interest income increased by $20 million from the second quarter to $567 million, driven by solid loan and overall balance sheet growth [5] - Total loans reached $52 billion at quarter end, reflecting an 11% year-to-date increase on an annualized basis [5] - Total deposits were nearly $57 billion at the end of Q3, with deposit growth of just under $900 million [5][9] - Net interest margin was 3.50% for the quarter, slightly down from the prior quarter but within the targeted range [6] Business Line Data and Key Metrics Changes - Loan growth for the quarter was broad-based, with commercial real estate loans growing by $327 million and Wintrust Life Finance growing by $252 million [14] - Non-interest income totaled $130.8 million in Q3, up approximately $6.7 million compared to the prior quarter, supported by higher wealth management and mortgage revenue [11] - Non-interest expenses totaled $380 million, a slight decline from $381.5 million in the previous quarter, indicating well-controlled expenses [11] Market Data and Key Metrics Changes - Wintrust achieved deposit share gains in key markets, ranking third in deposit market share in Illinois, up one position [7] - The company continues to see strong growth in its franchises in Wisconsin and West Michigan, with significant upside potential [7] Company Strategy and Development Direction - The company remains focused on core deposit growth as a key tenet of its franchise, emphasizing a relationship-based approach in its core Midwestern markets [7][19] - Wintrust aims to continue generating loan and deposit growth in the mid to high single-digit range while maintaining a stable net interest margin [18] - The management is committed to disciplined underwriting and is cautious about taking risks that do not meet their standards [18] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the stability of net interest margin despite potential rate cuts by the Fed, citing a balanced approach to managing deposit costs [32][68] - The overall credit environment remains stable, with proactive measures in place to address any challenges [17] - Management noted a sense of measured optimism among customers as they approach year-end, indicating strong portfolio performance [17] Other Important Information - The company has consistently grown tangible book value per share every year since going public and is on track to do so again in 2025 [12] - A one-time impact from preferred stock redemption reduced fully diluted net income per common share by $0.28 in Q3, but the adjusted figure would have been $3.06 without this impact [13] Q&A Session Summary Question: Can you talk about loan growth drivers and pipelines? - Management noted a unique market positioning in Chicago, gaining market share from larger banks, with stable pipelines for C&I and CRE loans [25][29] Question: How do you feel about holding the margin in the current range with potential Fed rate cuts? - Management expressed confidence in maintaining the margin around $350, citing effective management of deposit costs and a balanced loan portfolio [32][33] Question: What is the strategy for commercial loan growth? - Management indicated that the decline in commercial loan growth was more about timing than market competition, with consistent opportunities in the pipeline [37] Question: Are there any segments or industries where you are pulling back on lending? - Management stated they are closely monitoring higher education and healthcare sectors but are not pulling back from lending in general [94] Question: How do you view the competitive landscape among banks? - Management noted that the competitive environment remains rational, with no significant changes among larger and smaller banks [110]

Financial Data and Key Metrics Changes - WinTrust reported a record net income of $216 million for Q3 2025, up nearly 11% from $195 million in the previous quarter [5][10] - Net interest income increased by $20 million to $567 million, driven by solid loan and balance sheet growth [5][10] - Total loans reached $52 billion, reflecting an 11% year-to-date increase on an annualized basis [6][10] - Total deposits were nearly $57 billion, with deposit growth of $895 million, representing a 6% increase over the prior quarter [9][10] - Net interest margin was 3.5%, slightly down from the previous quarter but within the targeted range [6][10] Business Line Data and Key Metrics Changes - Loan growth was broad-based, with commercial real estate loans increasing by $327 million and life finance loans growing by $252 million [15][16] - Non-interest income totaled $130.8 million, up approximately $6.7 million compared to the prior quarter, supported by higher wealth management and mortgage revenue [12][10] - Non-interest expenses decreased slightly to $380 million from $381.5 million in the previous quarter, indicating well-controlled expenses [12][10] Market Data and Key Metrics Changes - WinTrust achieved deposit share gains in key markets, ranking third in deposit market share in Illinois, up one position [7][10] - The company continues to see strong growth in its franchises in Wisconsin and West Michigan, with significant upside potential [7][10] Company Strategy and Development Direction - The company remains focused on core deposit growth as a key strategy, leveraging its advantageous market position [7][10] - WinTrust aims to continue generating loan and deposit growth in the mid to high single-digit range while maintaining a stable net interest margin [23][10] - The management emphasizes a disciplined approach to underwriting and a commitment to customer relationships in the Midwest [24][10] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the stability of net interest margin despite potential rate cuts, citing a balanced deposit structure [35][10] - The overall credit environment remains stable, with proactive measures in place to address any challenges [20][10] - Management noted a sense of measured optimism among customers as they approach year-end [20][10] Other Important Information - The company has consistently grown tangible book value per share since going public and is on track to do so again in 2025 [13][10] - A one-time impact from preferred stock redemption reduced fully diluted net income per common share by $0.28 in Q3 [14][10] Q&A Session Summary Question: Can you talk about the loan growth drivers and any NDFI exposure? - Management highlighted unique market positioning in Chicago, gaining market share from larger banks, and noted that 70% of NDFI exposure is in mortgage warehouse lines with no losses experienced [28][33] Question: How do you feel about holding the margin in the current range with potential Fed rate cuts? - Management expressed confidence in maintaining the margin around 3.5%, citing a balanced deposit structure and effective hedging strategies [35][36] Question: What is the outlook for commercial loan growth? - Management indicated that the decline in commercial loan growth was more about timing than market competition, with consistent opportunities in the pipeline [40][41] Question: Can you expand on the strategy to focus on Midwest markets? - Management emphasized the attractiveness of the Midwest markets and the company's ability to take market share from competitors, preferring organic growth over expansion into other geographies [42][44] Question: What is the outlook for premium finance loans? - Management remains optimistic about premium finance growth, indicating it will continue to be a significant part of the loan portfolio [75][108] Question: Are there any segments or industries being closely monitored for credit? - Management is paying close attention to higher education and healthcare sectors, ensuring customers are well-capitalized to weather potential challenges [99][100]

Financial Data and Key Metrics Changes - Wintrust reported a record net income of $216 million for Q3 2025, up from over $195 million in the previous quarter, representing an increase of almost 11% quarter over quarter [3] - Net interest income increased by $20 million from the second quarter to $567 million, driven by solid loan and overall balance sheet growth [4] - Total assets grew by $646 million to just under $70 billion [8] - Non-interest income totaled $130.8 million, up approximately $6.7 million compared to the prior quarter [10] - Non-interest expenses decreased slightly to $380 million from $381.5 million in the previous quarter, with improved efficiency ratios [10] Business Line Data and Key Metrics Changes - Total loans reached $52 billion at quarter end, up 11% year to date on an annualized basis, with loan growth of just over $1 billion [4][7] - Commercial real estate loans grew by $327 million, while the Wintrust Life Finance team added $252 million [13] - Non-performing loans decreased from $189 million to $163 million, reflecting strong credit quality [14] Market Data and Key Metrics Changes - Wintrust achieved deposit share gains in key markets, ranking third in deposit market share in Illinois, up one position [5] - Deposit growth was $895 million during the quarter, representing a 6% increase over the prior quarter on an annualized basis [7] Company Strategy and Development Direction - The company remains focused on core deposit growth and maintaining a disciplined approach to underwriting, particularly in the Midwest markets [19] - Wintrust aims to continue generating loan and deposit growth in the mid to high single-digit range while maintaining a stable net interest margin [19] - The company is exploring both organic growth and potential acquisitions, with a preference for organic growth in familiar markets [97] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in maintaining a stable net interest margin despite potential rate cuts, citing effective balance sheet management [32][61] - The overall credit environment is stable, with proactive measures in place to address any emerging credit challenges [17] - Management noted a sense of measured optimism among customers as they approach year-end [17] Other Important Information - The company has consistently grown tangible book value per share since becoming public and is on track to do so again in 2025 [11] - A one-time impact from preferred stock redemption reduced fully diluted net income per common share by $0.28 in Q3 [12] Q&A Session Summary Question: Can you talk about the loan growth drivers and any NDFI exposure? - Management highlighted unique market positioning in Chicago, gaining market share from larger banks, and noted that NDFI exposure totals just over $2 billion, primarily in mortgage warehouse lines [25][31] Question: How do you feel about holding the margin in the current range with potential Fed rate cuts? - Management expressed confidence in maintaining the margin around $350, citing a balanced approach to deposits and loans [32] Question: What is the outlook for commercial loan growth? - Management indicated that the decline in commercial loan growth was more about timing than market competition, with consistent opportunities in the pipeline [37] Question: Can you expand on the strategy to play offense in your markets? - Management emphasized the attractiveness of the Midwest markets and the focus on organic growth rather than expanding into faster-growing regions [38][39] Question: Are there any segments or industries where you are pulling back your appetite to lend? - Management stated they are not pulling back from any specific segments but are closely monitoring higher education and healthcare sectors [81] Question: What is the biggest risk to maintaining the NIM? - Management identified irrational competition as a potential risk but noted that the current environment remains rational [83]

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Financial Performance Highlights - Net income for the first nine months of 2025 reached a record of $6008 million, an increase of $911 million or 18% compared to the same period in 2024[10, 13, 14] - Diluted EPS for the first nine months of 2025 was $825, up $058 or 8% from the same period in 2024[10, 13, 14] - Net interest income for the first nine months of 2025 reached a record $16 billion, an increase of $2028 million or 14% compared to the same period in 2024[10, 13, 14] - Pre-tax, pre-provision income for the first nine months of 2025 was $8841 million, an increase of $1061 million or 14% compared to the same period in 2024[10, 13] - Total assets reached $696 billion, an increase of $58 billion or 9%[10, 13] - Total loans increased by $50 billion or 11% to $521 billion[10, 13, 14] - Total deposits increased by $53 billion or 10% to $567 billion[10, 13] Balance Sheet and Capital Strength - Tangible book value per common share (non-GAAP) increased to $8539 as of September 30, 2025[10, 13, 14, 43] - The company's capital levels are well in excess of regulatory thresholds[36, 39] - Investment portfolio at 13% of total assets as of September 30, 2025[39] Loan and Deposit Portfolio - Total loans increased by approximately $10 billion in Q3 2025, or 8% annualized[16, 31] - Total deposits increased by approximately $8946 million in Q3 2025, or 6% annualized[16, 35]