Most regional banks have reported stronger earnings in the third quarter as credit strength continues to be a tailwind for much of the industry. But, as expected, the Street has been more focused on loan growth.

Forty out of the 48 banks with $10 billion to $100 billion in total assets that released third-quarter financial results as of Oct. 22 posted a year-over-year increase in earnings per share. On a linked-quarter basis, 26 of the 48 banks in the universe posted an increase in earnings.

While most banks posted stronger earnings, not all reported the sought-after recovery in loan growth. Some banks pointed to full pipelines but saw their total loan balances decrease due to paydown activity and the runoff of forgiven Paycheck Protection Program loans.

One bank to beat loan growth expectations was Wintrust Financial Corp., which reported linked-quarter core loan growth of 3.7%, beating an estimate of 1.5% from analysts at Janney Montgomery Scott. On the bank's earnings call, management expressed comfort with a loan growth target of mid- to high-single digits for the remainder of the year.

The market reacted positively to Wintrust's results, pushing the company's stock up 8.5% the day after the bank's results. Janney's analysts subsequently lowered their rating to "neutral" on the bank's stock "solely on valuation." The analysts increased their EPS estimate for the full year by 58 cents, citing stronger net interest income and a stable net interest margin.

Not all banks posted year-over-year growth in earnings as seven banks reported declines, including People's United Financial Inc., which reported net income available to common shareholders of $136.2 million, or 32 cents per share, down from $141.1 million, or 34 cents per share, in the year-ago period. However, the bank's pre-provision net revenue was up slightly quarter over quarter as the bank built credit loss reserves even in the face of strong credit quality, wrote Ken Usdin, an analyst at Jefferies LLC.