Wintrust Q3 2026 Net Income Hits Record on Loan Growth

Wintrust Financial Corporation reported record third-quarter net income as broad-based loan and deposit growth lifted net interest income, while its net interest margin remained largely stable. The bank said it expects balance-sheet expansion and a stable margin to support strong net interest income growth through the end of 2026.

Net income reached $239.1 million, up from $233.7 million in the second quarter and $216.3 million a year earlier. Diluted earnings per share were $3.37, compared with $3.30 in the prior quarter and $2.78 in the third quarter of 2025.

GAAP net interest income rose to $621.6 million from $597.4 million in the second quarter and $567.0 million a year earlier. The fully taxable-equivalent net interest margin, a non-GAAP measure, was 3.51%, one basis point below the previous quarter and within management’s expected range. The GAAP margin was 3.49%, down one basis point sequentially and up one basis point year over year.

Pre-tax income excluding the provision for credit losses, a non-GAAP measure, increased to a company record of $352.2 million from $341.1 million in the second quarter and $317.8 million a year earlier. Return on average assets was 1.27%, while return on average common equity was 12.83%. Non-GAAP return on average tangible common equity was 14.89%.

Loans and deposits expand

Total loans rose by approximately $1.1 billion during the quarter to $56.8 billion, an annualized growth rate of 8%, with increases across all major loan categories. Compared with September 2025, loans grew by $4.7 billion, or 9%. Commercial loans represented 32% of the portfolio at quarter-end, followed by commercial real estate at 27%, property-and-casualty premium finance at 15% and life-insurance premium finance at 17%.

Deposits increased by about $1.3 billion during the quarter to $62.4 billion, also an 8% annualized pace. Money-market accounts and NOW and interest-bearing demand deposits provided most of the quarterly growth. Deposits were up $5.7 billion, or 10%, from a year earlier, supported by organic growth across the company’s product range and market-share gains in key markets.

The rate paid on average interest-bearing deposits was 2.73%, compared with 2.74% in the second quarter. Wintrust said hedging activities had no material effect on its third-quarter net interest margin, after providing a one-basis-point benefit in the prior quarter. Its derivatives are intended to reduce interest-rate sensitivity and stabilize net interest income across different rate environments.

Fee income reflects wealth growth and mortgage pressure

Non-interest income totaled $136.3 million, down from $141.3 million in the second quarter but above $130.8 million a year earlier. Wealth-management revenue increased to $41.0 million from $39.9 million sequentially and $37.2 million a year earlier, while client assets under administration reached $51.5 billion.

Mortgage banking income declined to $29.2 million from $34.0 million in the second quarter and $33.8 million a year earlier. Mortgage originations held for sale fell to $618.5 million from $834.9 million in the previous quarter, with the presentation attributing the decrease to higher interest rates. The company said its mortgage-servicing rights were hedged to moderate changes in fair value.

Non-interest expense increased to $405.7 million from $397.5 million in the second quarter. Wintrust attributed the rise primarily to seasonally higher advertising and marketing spending and higher FDIC insurance expense following a reversal of a special assessment in the prior quarter. Even with the expense increase, the non-GAAP efficiency ratio improved to 53.22% from 53.76%.

Credit metrics remain stable

Non-performing loans totaled $176.9 million, or 0.31% of total loans, compared with $179.3 million and 0.32% at the end of June. Annualized net charge-offs were 15 basis points of average loans, up from 10 basis points in the second quarter but below 19 basis points a year earlier.

The provision for credit losses was $25.9 million, compared with $23.1 million in the previous quarter. The allowance for credit losses increased to $486.1 million from $481.2 million, reflecting portfolio changes partly offset by the effect of the company’s macroeconomic scenario. Allowance coverage equaled 0.86% of total loans and 1.22% of core loans.

Commercial real estate credit indicators remained low, with non-performing loans representing 0.09% of that portfolio. Office loans totaled about $1.66 billion, or 2.92% of total loans, and had a non-performing loan ratio of 0.40%.

Wintrust estimated its common equity Tier 1 ratio at 10.5% as of September 30, up from 10.4% at the end of June. The total capital ratio was estimated at 12.5%. Tangible book value per common share, a non-GAAP measure, was $88.18, down from $92.13 in the prior quarter as changes in accumulated other comprehensive income and an acquisition-related impact outweighed earnings and other additions.

For the first nine months of 2026, net income rose 17% to a record $700.1 million, while diluted EPS increased 20% to $9.89. GAAP net interest income advanced 10% to $1.80 billion.

Management expects a stable net interest margin and continued balance-sheet growth to generate strong net interest income growth through 2026. The outlook remains subject to changes in interest rates and deposit pricing, credit losses, commercial real estate conditions, mortgage activity, competition, regulation, cybersecurity threats and broader economic uncertainty.