Wintrust Grows Interest Income as Margin Narrows

The Tip Desk · July 20, 2026 · 2 min read

Net interest income reached a record $597.4 million as asset growth outweighed margin compression.

Wintrust Financial (WTFC), the Chicago-based regional lender, grew net interest income 3% QoQ and 9% YoY to a record $597.4 million as average earning assets increased by $2.1 billion. Net interest margin narrowed 4 bps QoQ to 3.50%, reflecting lower earning-asset and loan yields while interest-bearing deposit costs held steady.

Balance-sheet growth supplied the volume. Average loans rose 10% YoY and about 3% QoQ to $54.5 billion, while period-end loans increased $1.6 billion to $55.7 billion, a 12% annualized pace.

The expansion leaned on Wintrust's niche businesses. Niche loans grew at an 18% annualized rate during the quarter, led by U.S. property-and-casualty premium finance, commercial construction and mortgage warehouse lending. Core loans advanced at a 7% pace, while multifamily balances contracted 30%.

Deposits grew faster than loans, rising $2.2 billion QoQ to $61.1 billion and lowering the loans-to-deposits ratio to 91.0%. The mix shifted toward higher-cost products as money-market balances grew at a 25% annualized pace and certificates of deposit increased 41%, while non-interest-bearing deposits fell at a 10% pace and slipped to 19% of total deposits.

Fee revenue provided another lift. Non-interest income rose $7.2 million QoQ to $141.3 million, supported by higher mortgage banking revenue and securities gains, while wealth-management revenue declined. Expenses increased to $397.5 million, driven by compensation and advertising, though the net overhead ratio improved 2 bps to 1.42%.

Capital remained steady alongside a higher shareholder payout. Wintrust's estimated CET1 ratio held at 10.4%, up 40 bps YoY, while the common dividend remained $0.55 a share, 10% above the year-earlier payment.

Credit costs eased as the loan book expanded. Provision expense declined to $23.1 million, and net charge-offs fell to $13.4 million, or 10 bps of average loans, from 14 bps in the prior quarter. The allowance increased by $9.6 million to $481.2 million, while non-performing loans declined to 0.32% of loans.

The 12% annualized loan-growth pace and faster deposit gathering positioned Wintrust to keep adding interest income through volume, while the funding mix and lower loan yields kept pressure on the margin.