Updated April 2025
Wintrust Financial is a regional bank, based just outside Chicago, isn’t flashy, but it’s dependable—exactly what long-term dividend investors like to see in their portfolios. Wintrust serves both individuals and businesses through traditional banking, mortgage services, and wealth management. It’s built a loyal customer base across the Midwest by doing the basics well and staying financially grounded. For those who prize stable dividends over rollercoaster returns, WTFC offers a lot to like.
Recent Events
WTFC shares dropped sharply recently—over 9% in one session, now trading around $103.35. That kind of movement typically gets attention, and not always for the right reasons. But this selloff came despite strong underlying numbers. Sometimes the market gets jittery, especially around regional banks, and this feels like one of those moments.
The latest quarterly earnings (ending December 2024) tell a much calmer story. Net income reached $667 million over the trailing twelve months, and earnings per share came in at $10.31—a hefty 50% year-over-year increase. These aren’t signs of a struggling institution.
Return on equity is solid at 11.84%, and the company’s sitting on more than $5 billion in cash. With a market cap just under $8 billion and relatively low volatility (beta of 0.93), this is a bank that knows how to manage its balance sheet. For dividend-focused investors, that’s a comforting backdrop.
Key Dividend Metrics 🧮
📈 Forward Yield: 1.75%
💰 Annual Dividend: $2.00 per share
🧷 Payout Ratio: 17.46%
📅 Most Recent Dividend Date: February 20, 2025
⛳ Ex-Dividend Date: February 6, 2025
🪙 5-Year Average Yield: 1.73%
📉 Beta (5Y): 0.93
🔁 Last Stock Split: 3-for-2 (March 2002)
These figures show a picture of consistency. Wintrust isn’t chasing high yields to attract income hunters. Instead, it delivers measured, sustainable returns that don’t put pressure on the business during tougher times.
Dividend Overview
A 1.75% yield might not sound exciting at first glance, especially when compared to high-yield sectors like energy or real estate. But sometimes boring is beautiful—particularly when the dividend is this well-covered. Wintrust’s payout ratio is under 18%, which leaves the company plenty of flexibility to maintain or increase its dividend regardless of short-term swings in earnings.
That low payout tells you management isn’t trying to impress by over-distributing. They’re building a cushion—ensuring the dividend isn’t just for now, but for years ahead. For long-term investors, this kind of discipline matters more than a few extra basis points.
Wintrust also doesn’t have a history of cutting its dividend when things get tough. It has shown a steady hand through market cycles, which is exactly the kind of consistency you want if your goal is to rely on dividend income.
Dividend Growth and Safety
This isn’t a company that throws around double-digit dividend hikes every year. Instead, it opts for gradual, sustainable increases—something you can actually count on. And it can afford to do that comfortably. With earnings per share over $10 and a dividend of just $2, the company has room to maneuver even in a less favorable interest rate environment.
Book value per share is sitting at $89.21, while the stock trades just a touch above that. The price-to-book ratio of 1.29 tells us the market values WTFC slightly above its net assets—a vote of confidence, but not one driven by hype. It’s a signal that investors trust the bank to keep doing what it’s doing: growing earnings and steadily returning cash to shareholders.
And we can’t ignore the balance sheet. The bank holds more cash than debt—$5.07 billion in cash versus $4.63 billion in debt—which strengthens the argument that this dividend is safe. There’s no sign of aggressive leverage here. Just a well-run bank with conservative financials and a proven commitment to rewarding shareholders.
Wintrust might not be on every investor’s radar, but for income seekers looking for safety, consistency, and a smart use of capital, it quietly checks a lot of boxes.
Cash Flow Statement
Wintrust Financial’s cash flow profile over the trailing twelve months (TTM) reveals a well-capitalized institution navigating an active year. Operating cash flow came in at $721.6 million, demonstrating consistent core banking performance, though it’s slightly down from the previous two years. Free cash flow remains solid at $635.5 million, indicating that the bank maintains strong liquidity after accounting for capital expenditures.
What stands out most is the significant shift in financing and investing activity. Financing cash flow surged to over $5.25 billion—more than doubling from the previous year—suggesting aggressive moves in capital raising or deposit growth. At the same time, investing cash flow dipped sharply to negative $5.95 billion, indicating a strong deployment of capital, likely into loans or securities. While this aggressive allocation narrows the end cash balance to $458.5 million, the bank still maintains a healthy cash position relative to prior years. The increase in interest paid to $1.5 billion also reflects a tighter rate environment, with WTFC managing its obligations while supporting growth.
Analyst Ratings
🟢 Wintrust Financial Corporation (WTFC) has recently caught the attention of several analysts, and the sentiment is leaning positive. RBC Capital has kept its “Outperform” rating with a price target of $152. Piper Sandler bumped their target up slightly to $156 from $151, while Raymond James lifted theirs to $150 from a previous $135. Barclays followed suit with a revised target of $155, and UBS initiated coverage with a “Buy” rating and a target set at $157.
📈 These upward adjustments are rooted in Wintrust’s impressive earnings performance and its solid execution in a competitive banking environment. The company has shown resilience, especially in how it’s managed balance sheet growth and capital return. For analysts, that’s a key marker of long-term viability.
💬 Currently, the consensus among 13 analysts is a “Buy” rating, and the average price target stands at $133.69. While that figure suggests moderate upside from current levels, the more aggressive targets from top firms point to a stronger belief in Wintrust’s growth potential over the next 12 months.
📊 Much of the optimism is anchored in the company’s consistent earnings strength, a relatively low payout ratio, and a management team that has proven itself in both high and low rate environments. That consistency is what’s giving analysts the confidence to lift their projections.
Earning Report Summary
Wintrust Financial wrapped up 2024 with some pretty impressive numbers, showing that its steady, focused approach is continuing to pay off. The company posted net income of $695 million for the year, working out to $10.31 per share. That’s up over 11% from the year before. Not bad for a bank that doesn’t chase headlines, just results.
Strong Q4 Finish
The fourth quarter helped seal the deal, with net income landing at $185.4 million—about a 9% jump from Q3. Net interest income hit $525.1 million for the quarter, boosted by solid loan growth and a stable net interest margin at 3.49%. Loan balances rose by $1 billion, closing the year at $48.1 billion. Deposits grew by $1.1 billion, keeping the loans-to-deposits ratio at a healthy 91.5%. Total assets pushed higher to $64.9 billion, showing strong balance sheet momentum going into 2025.
Specialty Lending Pulling Its Weight
A lot of that growth came from their specialty finance side, particularly equipment finance. That part of the business expanded to $3.9 billion in Q4, up from $3.7 billion the quarter before. On top of that, insurance premium finance originations reached $5.1 billion. These niche segments are clearly becoming core contributors for Wintrust.
Solid Credit Performance
Credit quality continues to hold up nicely. Net charge-offs dropped to $15.9 million in the fourth quarter, down from $26.7 million previously. Non-performing loans were just 0.36% of total loans, and they’ve kept $437.1 million stashed away in reserves. That kind of conservatism gives the company room to absorb shocks, should any appear.
Macatawa Merger Paying Off
Another highlight from the back half of the year was the completed acquisition of Macatawa Bank. That deal added $1.1 billion in assets during the fourth quarter alone and brought in an additional $1.4 billion in loans and $2.3 billion in deposits. It’s a meaningful footprint expansion in West Michigan and aligns well with Wintrust’s growth strategy.
Overall, the bank’s entering the new year with a lot going for it. Margins are stable, loan pipelines are full, and their specialty finance arms are delivering. It’s not a flashy story, but it’s a strong one—and that’s often what matters most.
Chart Analysis
WTFC has had quite the ride over the past year, and this chart gives us a clear view of how sentiment and momentum have shifted along the way.
Price and Moving Averages
The stock made a steady climb from early summer into late fall, with the 50-day moving average crossing above the 200-day average in August—a classic sign of strength. That uptrend held firm for months as price action stayed well above both averages. But heading into March, the tone changed. The 50-day line began to curl downward, and just recently, it’s crossed below the 200-day, forming a death cross. That kind of move often signals a change in longer-term momentum, especially when accompanied by declining volume and failed attempts to reclaim recent highs.
Volume Activity
Volume remained relatively stable throughout the year, with occasional spikes, especially around major price moves. Notably, there was a strong burst in late March that coincided with a sharp pullback. That suggests institutional or fund-driven selling, especially since price dropped aggressively and sliced through support levels that had held for several months. Since then, volume has not returned to previous highs, hinting that buyers may be more cautious right now.
RSI and Momentum
The Relative Strength Index (RSI) adds more context. In late summer and early fall, the stock flirted with overbought levels more than once, showing strong upside enthusiasm. More recently, it dipped into oversold territory in March before attempting a modest recovery. That bounce brought RSI close to 70 again before the latest drop, indicating a failed rally and a potential warning sign that momentum is weakening. With RSI now falling again, the momentum has clearly shifted toward the downside.
WTFC is currently sitting below both moving averages, and with the RSI trending down and volume tapering off, the chart suggests the stock is in a correction phase after a strong run. The recent breakdown and failed retest of the 200-day moving average may point to more consolidation ahead before any potential recovery gains traction.
Management Team
Wintrust Financial Corporation is led by a team with deep experience in banking and financial services. At the top is Timothy S. Crane, who currently serves as President and CEO. With a four-decade career across retail, commercial, and wealth banking, Crane brings a practical, well-rounded approach to leadership. Since joining the company in 2008, he’s played a major role in overseeing its network of more than 180 locations through 15 community banks.
Edward J. Wehmer, the founder of Wintrust, now serves as Founder and Senior Advisor. His long-term leadership helped shape the company’s culture and strategic direction from the ground up. Under his guidance, Wintrust built a reputation as a community-focused and customer-centric institution.
Also key to the leadership team is David A. Dykstra, Vice Chairman and COO. His focus has long been on operations and risk management, making sure the company runs efficiently and stays on solid footing. Together, this leadership group has guided Wintrust through various market cycles while maintaining an emphasis on stable growth and responsible risk-taking.
Valuation and Stock Performance
As of early April 2025, Wintrust stock (WTFC) is trading around $102.55. Over the past 12 months, it’s seen its share of ups and downs, ranging from a high of $142.04 to a low of $91.38. Recent price action has been choppy, reflecting broader market volatility and some sector-specific pressure on regional banks.
Looking at valuation, the stock has a price-to-earnings ratio of 11.11, which puts it in a reasonable zone compared to historical averages and industry peers. The price-to-book ratio sits at 1.29, showing the market is placing a modest premium on the company’s tangible net assets—often a sign of investor confidence in long-term earnings power.
Analyst targets currently average in the $113 range, hinting at potential upside if the company can continue executing well. Market sentiment is a bit mixed right now, but Wintrust’s fundamentals remain intact, and the stock isn’t showing signs of being overvalued despite recent declines.
Risks and Considerations
Like any financial institution, Wintrust faces a number of risks that investors should keep in mind. One of the bigger long-term challenges is regulatory compliance. Whether it’s fair lending rules, privacy standards, or cybersecurity, the bank operates in a tightly controlled environment that requires constant attention.
Its capital position is solid, with a Common Equity Tier 1 ratio of 9.2%, which puts it in a comfortable range relative to other banks its size. But that doesn’t mean it’s immune to shifts in interest rates or macroeconomic stress. Any major changes in the rate environment or a downturn in credit quality could pressure earnings or reduce flexibility.
Another area to watch is environmental and social governance. Wintrust has acknowledged climate and environmental risks in its filings, signaling a move to incorporate ESG into its risk framework. While this doesn’t directly impact performance today, it’s a growing area of focus across the industry, and it could shape investor sentiment going forward.
Final Thoughts
Wintrust Financial comes across as a well-managed, conservatively run bank with a long-term focus. Its leadership team has weathered market cycles before, and they continue to build on a strategy rooted in steady loan growth, disciplined risk management, and strong regional ties.
The current valuation offers a balanced picture. It’s not in bargain territory, but it’s not overpriced either, especially considering the company’s earnings strength and stable dividend payout. The stock may not shoot higher in the short term, but it does offer a grounded, fundamentals-first story.
There are risks—both regulatory and economic—that could shape the path forward. Still, the company’s track record suggests it’s built to handle those challenges. Whether the market rewards that consistency will depend on how the broader environment unfolds, but from an operational standpoint, Wintrust appears to be on solid ground.