WTFC - Wintrust Financial: Provisions Normalization To Hurt Earnings

• Strong loan growth will likely continue in the coming quarters due to a robust pipeline and economic recovery.
• The net interest income is quite sensitive to an interest rate hike. Thus, the margin will likely expand in 2022.
• After a year of substantial loan loss reserve releases, the provisioning will likely return to a normal level next year on the back of robust loan growth.
• The December 2022 target price suggests a small upside from the current market price. Further, WTFC is offering a low and unattractive dividend yield.

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