Wintrust Financial (NASDAQ:WTFC) reported what management described as a “very strong, straightforward quarter,” with record net income, broad-based loan growth, strong deposit inflows and stable credit quality in the second quarter of 2026.
President and CEO Tim Crane said the quarter marked Wintrust’s sixth consecutive record quarter of net income. The company reported second-quarter net income of $233.7 million, up from just over $227 million in the first quarter. Year-to-date net income was $461 million, up 20% from the same period last year.
Deposits and Loans Grow Sharply
Vice Chairman and Chief Operating Officer Dave Dykstra said deposits increased by approximately $2.2 billion during the quarter, representing a 15% annualized increase from the prior quarter. That growth funded loan growth of approximately $1.6 billion, or 12% annualized.
Dykstra said interest-bearing deposit costs were flat from the prior quarter at 2.74%, despite the significant increase in deposits. Loan yields declined seven basis points to 6.07%, primarily due to repricing in the commercial insurance premium finance portfolio and modest spread compression from competitive market pressures.
Crane said deposit growth was helped by municipal seasonality, commercial growth and retail growth. He said Wintrust expects strong deposit growth in the second half of the year, though not at the same level as the second quarter. He also said pricing in the market remains “relatively rational.”
Vice Chairman and Chief Lending Officer Richard Murphy said loan growth was broad-based, with every lending segment posting positive growth. The first insurance funding portfolio grew $722 million, while commercial loans increased $518 million, supported by production in asset-based lending and leasing. Commercial real estate loans rose $108 million, and the Wintrust Life Finance portfolio grew by $116 million.
Net Interest Margin Remains Stable
Net interest income improved by $18.3 million from the first quarter, Dykstra said, helped by a $2.1 billion increase in average earning assets. That benefit was partially offset by a four-basis-point decline in net interest margin.
The net interest margin was 3.52% in the second quarter. Dykstra said the margin has ranged from 3.50% to 3.59% over the past 10 quarters, demonstrating stability. Management continues to expect the margin to remain within a few basis points of 3.50%.
Dykstra said competitive pressure was not dramatic but was visible in some commercial, commercial real estate and premium finance transactions. He said Wintrust is declining deals where pricing does not meet its standards, particularly larger premium finance loans priced “awfully thin.”
Crane said the company expects solid net interest income growth and good operating leverage regardless of the precise margin level.
Expenses Rise, but Management Points to Operating Leverage
Non-interest income totaled $141.3 million in the second quarter, up from $134.1 million in the first quarter. Dykstra said the increase was primarily driven by a $4 million improvement in mortgage banking revenue, about $2 million in higher bank-owned life insurance income and approximately $1.8 million more in securities gains.
However, Dykstra cautioned that those items can be volatile and may not recur at the same level in the third quarter. He said the company currently expects mortgage revenue to fall back into the low $20 million range as homebuying seasonality subsides.
Non-interest expense rose to $397.5 million from $382.6 million in the prior quarter. Dykstra attributed the increase to several factors, including the full-quarter effect of annual merit increases, higher mortgage-related commissions, higher deferred compensation expense related to BOLI and a seasonal increase in advertising and marketing tied to sports sponsorships and summer community events.
Those increases were partially offset by a $5.2 million reversal of accrued FDIC assessment expense related to a final true-up of the special assessment imposed after two bank failures in 2023. Dykstra said Wintrust remains on track for mid-single-digit expense growth in 2026 compared with 2025.
Credit Quality Remains Stable
Murphy said Wintrust continued to see strong credit performance across its portfolio. Non-performing loans decreased to $179.3 million, or 0.32% of loans, from $182.7 million, or 0.34%, in the prior quarter. Charge-offs declined to 10 basis points from 14 basis points.
Murphy said the figures reflect a stable credit environment and Wintrust’s focus on identifying problem credits early and charging them down where appropriate.
The company continues to closely monitor its commercial real estate exposure, which represents roughly one-quarter of the total loan portfolio. Murphy said CRE non-performing loans remained unchanged from the first quarter at 0.12%, while CRE charge-offs remained at historically low levels.
Wintrust’s CRE office exposure stood at $1.6 billion, or 11.3% of the total CRE portfolio and 2.9% of total loans. Murphy said the company performs quarterly deep-dive reviews of the office portfolio and that the most recent analysis showed results consistent with prior quarters.
Branch Expansion and Wealth Management Investment
Crane said Wintrust plans to open several branches during the remainder of the year. New locations in Chicago’s Lakeview neighborhood and in Montgomery and Elk Grove Village, Illinois, are expected to open in the coming weeks, with additional locations later in the quarter, including three in Northwest Indiana.
Crane also highlighted Wintrust’s July 6 announcement that it intends to purchase Northern Trust’s guardianship services business. He described the transaction as a “good bolt-on acquisition” for Wintrust’s wealth management business and said it is expected to close later this year.
Management said Wintrust is also continuing to invest in digital banking, with new consumer and business features expected in the third quarter. Crane said those investments are intended to support the company’s customer experience and long-term growth.
Looking ahead, Crane said Wintrust’s targets remain unchanged: mid- to high-single-digit loan growth, deposit growth sufficient to largely fund loan growth, well-managed expenses, stable credit performance and rising CET1 and other capital ratios in coming quarters.
About Wintrust Financial (NASDAQ:WTFC)
Wintrust Financial Corporation is a Chicago‐area bank holding company headquartered in Rosemont, Illinois. Through its primary subsidiary, Wintrust Bank, the company operates a network of community banks serving metropolitan Chicago and select markets in southeastern Wisconsin. These locally branded banks provide personalized commercial and consumer banking solutions tailored to small and mid‐size businesses, professionals, and individual clients.
The firm’s core offerings include deposit products, commercial and residential lending, treasury management, and mortgage banking services.
