Analyst David Chiaverini from Jefferies has initiated coverage on Wintrust Financial (WTFC, Financial), assigning it a Buy rating along with a price target of $145. This move is part of the firm's broader evaluation of 32 regional and mid-cap banks, where it maintains a positive outlook despite the persisting uncertainty surrounding tariffs.
Chiaverini highlights several factors that could benefit banks like WTFC. These include potential loan growth as the U.S. economy steers clear of a recession, the possibility of expanding net interest margins due to a steeper yield curve, stable credit metrics, and surplus capital that banks can leverage strategically. Additionally, the current valuations are deemed attractive for investors.
Wall Street Analysts Forecast
Based on the one-year price targets offered by 12 analysts, the average target price for Wintrust Financial Corp (WTFC, Financial) is $136.67 with a high estimate of $154.00 and a low estimate of $115.00. The average target implies an upside of 11.91% from the current price of $122.12. More detailed estimate data can be found on the Wintrust Financial Corp (WTFC) Forecast page.
Based on the consensus recommendation from 12 brokerage firms, Wintrust Financial Corp's (WTFC, Financial) average brokerage recommendation is currently 1.8, indicating "Outperform" status. The rating scale ranges from 1 to 5, where 1 signifies Strong Buy, and 5 denotes Sell.
Based on GuruFocus estimates, the estimated GF Value for Wintrust Financial Corp (WTFC, Financial) in one year is $109.90, suggesting a downside of 10.01% from the current price of $122.122. GF Value is GuruFocus' estimate of the fair value that the stock should be traded at. It is calculated based on the historical multiples the stock has traded at previously, as well as past business growth and the future estimates of the business' performance. More detailed data can be found on the Wintrust Financial Corp (WTFC) Summary page.
WTFC Key Business Developments
Release Date: April 22, 2025
- Net Income: $189 million for the first quarter.
- Net Interest Income: Record $526 million despite two fewer business days.
- Loan Growth: Over $650 million increase.
- Deposit Growth: Over $1.1 billion increase.
- Net Interest Margin: 3.56%, up 5 basis points from the previous quarter.
- Charge-offs: 11 basis points, down from the previous quarter.
- Provision for Credit Losses: $24 million, consistent with prior quarters.
- Non-Interest Income: $116.6 million, a $3.2 million increase from the previous quarter.
- Non-Interest Expenses: $366.1 million, a decrease of $2.4 million from the previous quarter.
- Tangible Book Value Per Share: $78.83, up from $75.39 in the prior quarter.
- CRE Office Exposure: $1.6 billion, 12.7% of total CRE portfolio.
- Dividend: Increased to $2 per share on an annualized basis.
- CET1 Ratio: Slightly over 10% at the end of the quarter.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- Wintrust Financial Corp (WTFC, Financial) reported a quarterly net income of $189 million and record net interest income of $526 million, despite two fewer business days in the quarter.
- The company achieved significant loan growth of over $650 million and deposit growth of over $1.1 billion, indicating strong market share gains.
- Net interest margin improved to 3.56%, up 5 basis points from the previous quarter, reflecting disciplined loan and deposit pricing.
- Credit performance remained solid with charge-offs down to 11 basis points and stable non-performing loans.
- Wintrust Financial Corp (WTFC) increased its dividend to $2 per share on an annualized basis and continues to grow its capital ratio steadily.
Negative Points
- The economic environment remains uncertain, with potential impacts from tariffs, tax law changes, and funding cuts, which could affect future growth.
- There was a slight increase in the provision for credit losses due to the uncertain economic environment and potential impact of higher credit spreads.
- Non-interest income was relatively flat, with subdued mortgage banking activity and lower wealth management revenue.
- Non-interest expenses are expected to increase in the second quarter due to annual merit increases and higher marketing expenses.
- The company faces competitive pressures in certain areas, such as leasing and commercial real estate, which could impact pricing and growth.
