Wintrust Q2 net interest income rises on growth in average earning assets

Overview

• U.S. regional bank's Q2 revenue slightly beat analyst expectations on strong loan and deposit growth

• Net interest margin declined to 3.50% due to lower loan yields

Outlook

• Wintrust expects consistent balance sheet growth in coming quarters

• Company anticipates net interest income expansion supported by stable net interest margin

• Wintrust aims for positive operating leverage for 2026 through expense management

Result Drivers

• LOAN AND DEPOSIT GROWTH - Q2 results driven by strong, diversified loan growth and robust organic deposit growth, per CEO Timothy Crane

• NET INTEREST INCOME - Record net interest income attributed to growth in average earning assets, despite a slight decline in net interest margin

• NON-INTEREST INCOME - Higher mortgage banking revenue and net gains on investment securities offset a decline in wealth management revenue

Company press release: ID:nGNX5s4xBD

Key Details

*Applies to a deviation of less than 1%; not applicable for per-share numbers.

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 9 "strong buy" or "buy", 4 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the banks peer group is "buy"

• Wall Street's median 12-month price target for Wintrust Financial Corp is $183.00, about 11.4% above its July 17 closing price of $164.30

• The stock recently traded at 12 times the next 12-month earnings vs. a P/E of 11 three months ago

Reuters Recommended Reads

• July 20 - ServisFirst Bancshares Q2 EPS rises 40% on loan growth, higher net interest margin

• July 20 - Peoples Bancorp of North Carolina Q2 net interest income rises

• July 20 - MainStreet Bancshares Q2 profit rises on higher interest margin

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)