• Wintrust Financial Corporation Reports Record Year-to-Date Net Income

    来源: Nasdaq GlobeNewswire / 17 10月 2023 17:00:28   America/New_York

    ROSEMONT, Ill., Oct. 17, 2023 (GLOBE NEWSWIRE) -- Wintrust Financial Corporation (“Wintrust”, “the Company”, “we” or “our”) (Nasdaq: WTFC) announced record net income of $499.1 million or $7.71 per diluted common share for the first nine months of 2023 compared to net income of $364.9 million or $5.78 per diluted common share for the same period of 2022, an increase in diluted earnings per common share of 33%. Pre-tax, pre-provision income (non-GAAP) for the first nine months of 2023 totaled $751.3 million as compared to $536.3 million in the first nine months of 2022, an increase in pre-tax, pre-provision income of 40%.

    The Company recorded quarterly net income of $164.2 million or $2.53 per diluted common share for the third quarter of 2023, an increase in diluted earnings per common share of 6% compared to the second quarter of 2023 and 14% compared to the third quarter of 2022. Pre-tax, pre-provision income (non-GAAP) totaled $244.8 million as compared to $239.9 million for the second quarter of 2023 and $206.5 million for the third quarter of 2022.

    Timothy S. Crane, President and Chief Executive Officer, commented, “As demonstrated by our strong results, we followed our record first half of 2023 with continued momentum in the third quarter of 2023. We leveraged our position in the markets we serve to sustain growth in loans and deposits during the quarter.”

    Additionally, Mr. Crane noted, “Our net interest margin for the quarter was within our expected range, down slightly due primarily to the impact of hedging activities. In the current interest rate environment, we expect to maintain our net interest margin within a narrow range around current levels for the remainder of 2023 and continuing into the beginning of 2024. We believe this growth and stability in net interest margin will drive strong financial performance in future quarters.”

    Highlights of the third quarter of 2023:
    Comparative information to the second quarter of 2023, unless otherwise noted

    • Total deposits grew by approximately $1 billion, or 9% annualized.
    • Total loans increased by approximately $423 million, or 4% annualized. Adjusting for the impact of a loan sale transaction within our property and casualty insurance premium finance receivables portfolio during the third quarter of 2023, total loans would have increased $767 million, or 7% annualized.
    • Record quarterly net interest income of $462.4 million, increasing approximately $14.8 million primarily due to strong growth in earning assets.
      • Net interest margin decreased four basis points to 3.60% (3.62% on a fully taxable-equivalent basis, non-GAAP) during the third quarter of 2023 primarily due to the negative impact of hedging activities.
    • Non-interest expense was negatively impacted by:
      • Occupancy costs of approximately $2.9 million from the impairment of two Company-owned buildings that are no longer being used.
      • Data processing costs of approximately $1.5 million from the termination of a duplicate service contract related to the acquisition of a wealth management business in 2023.
      • Other salary costs of approximately $1.6 million related to acquisition-related severance charges and other contractually due compensation costs.
    • Provision for credit losses totaled $19.9 million in the third quarter of 2023 as compared to a provision for credit losses of $28.5 million in the second quarter of 2023.
    • Net charge-offs totaled $8.1 million or eight basis points of average total loans on an annualized basis in the third quarter of 2023 as compared to $17.0 million or 17 basis points of average total loans on an annualized basis in the second quarter of 2023.

    Mr. Crane commented, “By leveraging our customer relationships, market positioning, diversified products and competitive rates, we continued to generate significant deposit growth, increasing deposits approximately $1 billion, or 9% on an annualized basis, in the third quarter of 2023. Growth in retail deposits helped reduce our level of brokered deposits by approximately $392 million during the third quarter of 2023. In addition, deposit growth helped fund approximately $423 million of loan growth during the quarter. This strong loan growth was achieved despite the impact of a loan sale transaction within our property and casualty insurance premium finance receivables portfolio that reduced period-end balances at the end of the third quarter by approximately $344 million. Loan growth came primarily from draws on existing commercial real estate loan facilities as well as growth in our commercial portfolio. Additionally, despite the loan sale transaction noted above, our property and casualty insurance premium finance receivables portfolio ended the quarter relatively unchanged. We remain prudent in our review of credit prospects ensuring our loan growth stays within our conservative credit standards.”

    Mr. Crane noted, “We grew our net interest income during the third quarter of 2023 by approximately $14.8 million primarily due to an increase in average earning assets of approximately $1.6 billion. Our net interest margin decreased four basis points during the third quarter, however, three basis points of the decline was due to the impact of our interest rate hedging strategies, which are designed to protect our net interest income if interest rates decline. Deposit pricing pressures moderated in the third quarter of 2023 and we expect that to continue into the fourth quarter. Assuming a similar interest rate environment, we believe our net interest margin will be relatively stable for the remainder of 2023 and entering 2024. The combination of balance sheet growth and a stable net interest margin is expected to continue to grow our net interest income.”

    Commenting on credit quality, Mr. Crane stated, “Credit metrics remained strong and at historically low levels. Net charge-offs totaled $8.1 million or eight basis points of average total loans on an annualized basis in the third quarter of 2023 as compared to $17.0 million or 17 basis points of average total loans on an annualized basis in the second quarter of 2023. Non-performing loans totaled $133.1 million, or 0.32% of total loans, at the end of the third quarter of 2023 compared to $108.7 million, or 0.26% of total loans, at the end of the second quarter of 2023. Of the $24.4 million increase in non-performing loans in the third quarter of 2023, $19.6 million is related to the premium finance receivables portfolios in which we ultimately expect minimal losses. The allowance for credit losses on our core loan portfolio as of September 30, 2023 was approximately 1.51% of the outstanding balance (see Table 12 for additional information). We believe that the Company’s reserves remain appropriate and we remain diligent in our review of credit.”

    Mr. Crane concluded, “I am very pleased with our results for the third quarter of 2023. Net income for the quarter was the second highest in our history, behind only the net income reported in the first quarter of 2023. Total loans as of September 30, 2023 were $739 million higher than average total loans in the third quarter of 2023, which is expected to help continue our momentum into the fourth quarter. We continue to win business and expand our franchise, keeping us well-positioned in the markets we serve. This will help grow our deposit and loan relationships, which should generate higher net revenues and earnings in the coming quarters. As a result, our capital ratios will benefit from the increased earnings.”

    The graphs below illustrate certain financial highlights of the third quarter of 2023 as well as historical financial performance. See “Supplemental Non-GAAP Financial Measures/Ratios” at Table 17 for additional information with respect to non-GAAP financial measures/ratios, including the reconciliations to the corresponding GAAP financial measures/ratios.

    Graphs available at the following link:

    http://ml.globenewswire.com/Resource/Download/c2b726e7-3c69-483b-b815-c3e18b1fa57f

    SUMMARY OF RESULTS:

    BALANCE SHEET

    Total assets increased $1.3 billion in the third quarter of 2023 as compared to the second quarter of 2023. Total loans increased by $422.6 million as compared to the second quarter of 2023. The increase in loans was primarily the result of draws on existing commercial real estate loan facilities as well as growth in the commercial portfolio. Additionally, despite a loan sale transaction that reduced outstanding balances at the end of the third quarter of 2023 by $344 million, the property and casualty insurance premium finance receivables portfolio ended the quarter relatively unchanged. In the third quarter of 2023, the Company purchased securities, resulting in a $480.7 million increase in investment securities.

    Total liabilities increased by $1.3 billion in the third quarter of 2023 as compared to the second quarter of 2023 primarily due to a $1.0 billion increase in total deposits. Non-interest bearing deposits as a percentage of total deposits was 23% at September 30, 2023 compared to 24% at June 30, 2023 as deposit growth came primarily from interest bearing deposit categories. Net outflows from non-interest bearing deposits stabilized during the third quarter of 2023 as average non-interest bearing deposits during the third quarter of 2023 essentially equaled the amount at the end of the second quarter of 2023 at $10.6 billion.

    For more information regarding changes in the Company’s balance sheet, see Consolidated Statements of Condition and Table 1 through Table 3 in this report.

    NET INTEREST INCOME

    For the third quarter of 2023, net interest income totaled $462.4 million, an increase of $14.8 million as compared to the second quarter of 2023. The $14.8 million increase in net interest income in the third quarter of 2023 compared to the second quarter of 2023 was primarily due to a $1.6 billion increase in average earning assets and one additional day in the quarter.

    Net interest margin was 3.60% (3.62% on a fully taxable-equivalent basis, non-GAAP) during the third quarter of 2023 compared to 3.64% (3.66% on a fully taxable-equivalent basis, non-GAAP) during the second quarter of 2023. The net interest margin decrease as compared to the second quarter of 2023 was primarily due to the negative impact of hedging activities as well as a 36 basis point increase in the rate paid on interest-bearing liabilities. This decrease was partially offset by a 27 basis point increase in yield on earning assets and a five basis point increase in the net free funds contribution. The 36 basis point increase on the rate paid on interest-bearing liabilities in the third quarter of 2023 as compared to the second quarter of 2023 was primarily due to a 41 basis point increase in the rate paid on interest-bearing deposits primarily related to the increasing rate environment. The 27 basis point increase in the yield on earning assets in the third quarter of 2023 as compared to the second quarter of 2023 was primarily due to a 28 basis point expansion on loan yields and 41 basis point increase in liquidity management asset yield.

    For more information regarding net interest income, see Table 4 through Table 8 in this report.

    ASSET QUALITY

    The allowance for credit losses totaled $399.5 million as of September 30, 2023, an increase of $11.7 million as compared to $387.8 million as of June 30, 2023. A provision for credit losses totaling $19.9 million was recorded for the third quarter of 2023 as compared to $28.5 million recorded in the second quarter of 2023. For more information regarding the allowance for credit losses and provision for credit losses, see Table 11 in this report.

    Management believes the allowance for credit losses is appropriate to account for expected credit losses. The Current Expected Credit Losses (“CECL”) accounting standard requires the Company to estimate expected credit losses over the life of the Company’s financial assets as of the reporting date. There can be no assurances, however, that future losses will not significantly exceed the amounts provided for, thereby affecting future results of operations. A summary of the allowance for credit losses calculated for the loan components in each portfolio as of September 30, 2023, June 30, 2023, and March 31, 2023 is shown on Table 12 of this report.

    Net charge-offs totaled $8.1 million in the third quarter of 2023, as compared to $17.0 million of net charge-offs in the second quarter of 2023. The decrease in net charge-offs during the third quarter of 2023 was primarily the result of the sale to external parties of certain credits within the commercial real estate portfolio during the second quarter of 2023, which resulted in approximately $8.0 million in charge-offs. Net charge-offs as a percentage of average total loans were eight basis points in the third quarter of 2023 on an annualized basis compared to 17 basis points on an annualized basis in the second quarter of 2023. For more information regarding net charge-offs, see Table 10 in this report.

    The Company’s delinquency rates remain low and manageable. For more information regarding past due loans, see Table 13 in this report. 

    Non-performing assets totaled $147.2 million and comprised 0.26% of total assets as of September 30, 2023, as compared to $120.3 million as of June 30, 2023. Non-performing loans totaled $133.1 million, or 0.32% of total loans, at September 30, 2023. The increase in the third quarter was primarily due to an increase in loans 90 days or more past due but still fully collateralized within the life insurance premium finance receivables portfolio, and certain credits within the property and casualty insurance premium finance receivables portfolio becoming nonaccrual. For more information regarding non-performing assets, see Table 14 in this report.

    NON-INTEREST INCOME

    Wealth management revenue was relatively stable in the third quarter of 2023 as compared to the second quarter of 2023. Wealth management revenue is comprised of the trust and asset management revenue of The Chicago Trust Company and Great Lakes Advisors, the brokerage commissions, managed money fees and insurance product commissions at Wintrust Investments and fees from tax-deferred like-kind exchange services provided by the Chicago Deferred Exchange Company.

    Mortgage banking revenue decreased by $2.6 million in the third quarter of 2023 as compared to the second quarter of 2023 primarily due to an unfavorable valuation related change in the Company’s held-for-sale portfolio of early buy-out exercised loans guaranteed by U.S. government agencies which are held at fair value. This was partially offset by increased production revenue and a more favorable adjustments to the fair value of mortgage servicing rights compared to the second quarter of 2023. The Company monitors the relationship of these assets and seeks to minimize the earnings impact of fair value changes.

    The Company recognized $2.4 million in net losses on investment securities in the third quarter of 2023 as compared to nominal gains in the second quarter of 2023.

    Fees from covered call options increased by $1.6 million in the third quarter of 2023 as compared to the second quarter of 2023. The Company has typically written call options with terms of less than three months against certain U.S. Treasury and agency securities held in its portfolio for liquidity and other purposes. Management has entered into these transactions with the goal of economically hedging security positions and enhancing its overall return on its investment portfolio. These option transactions are designed to mitigate overall interest rate risk and do not qualify as hedges pursuant to accounting guidance.

    For more information regarding non-interest income, see Table 15 in this report.

    NON-INTEREST EXPENSE

    Salaries and employee benefits expense increased by $7.4 million in the third quarter of 2023 as compared to the second quarter of 2023. The $7.4 million increase is primarily related to higher salary expense and incentive compensation expense due to elevated bonus accruals in the third quarter of 2023 as well as other salary costs of approximately $1.6 million related to acquisition-related severance charges and other contractually due compensation costs.

    Operating lease equipment cost increased $2.2 million in the third quarter of 2023 as compared to the second quarter of 2023 primarily due to the impairment of certain assets during the period.

    Occupancy expenses increased $2.1 million in the third quarter of 2023 as compared to the second quarter of 2023 primarily due to the impairment of two Company-owned buildings that are no longer being used. 

    Data processing expense increased $1.0 million in the third quarter of 2023 as compared to the second quarter of 2023 primarily due to the termination of a duplicate service contract related to the acquisition of a wealth management business in 2023.

    Lending expenses, net of deferred origination costs, decreased by $3.1 million as compared to the second quarter of 2023 primarily due to higher loan originations in the second quarter of 2023.

    Miscellaneous expense in the third quarter of 2023 decreased by $1.0 million as compared to the second quarter of 2023. Miscellaneous expense includes ATM expenses, correspondent bank charges, directors’ fees, telephone, postage, corporate insurance, dues and subscriptions, problem loan expenses and other miscellaneous operational losses and costs.

    For more information regarding non-interest expense, see Table 16 in this report.

    INCOME TAXES

    The Company recorded income tax expense of $60.7 million in the third quarter of 2023 compared to $56.7 million in the second quarter of 2023. The effective tax rates were 26.98% in the third quarter of 2023 compared to 26.81% in the second quarter of 2023.

    BUSINESS UNIT SUMMARY

    Community Banking

    Through its community banking unit, the Company provides banking and financial services primarily to individuals, small to mid-sized businesses, local governmental units and institutional clients residing primarily in the local areas the Company services. In the third quarter of 2023, this unit expanded its commercial, commercial real estate and residential real estate loan portfolios and grew retail deposits.

    Mortgage banking revenue was $27.4 million for the third quarter of 2023, a decrease of $2.6 million as compared to the second quarter of 2023, primarily due to an unfavorable valuation related change in the Company’s held-for-sale portfolio of early buy-out exercised loans guaranteed by U.S. government agencies which are held at fair value. Service charges on deposit accounts totaled $14.2 million in the third quarter of 2023, an increase of $609,000 as compared to the second quarter of 2023, primarily due to higher fees associated with commercial account activity. The Company’s gross commercial and commercial real estate loan pipelines remained solid as of September 30, 2023 indicating momentum for expected continued loan growth in the fourth quarter of 2023.

    Specialty Finance

    Through its specialty finance unit, the Company offers financing of insurance premiums for businesses and individuals, equipment financing through structured loans and lease products to customers in a variety of industries, accounts receivable financing and value-added, out-sourced administrative services and other services. Originations within the insurance premium financing receivables portfolio were $4.6 billion during the third quarter of 2023 and average balances increased by $444.0 million as compared to the second quarter of 2023. The Company’s leasing portfolio balance increased in the third quarter of 2023, with its portfolio of assets, including capital leases, loans and equipment on operating leases, totaling $3.3 billion as of September 30, 2023 as compared to $3.1 billion as of June 30, 2023. Revenues from the Company’s out-sourced administrative services business were $1.3 million in the third quarter of 2023, an increase of $17,000 from the second quarter of 2023.

    Wealth Management

    Through four separate subsidiaries within its wealth management unit, the Company offers a full range of wealth management services, including trust and investment services, tax-deferred like-kind exchange services, asset management, securities brokerage services and 401(k) and retirement plan services. Wealth management revenue totaled $33.5 million in the third quarter of 2023, which was relatively stable compared to the second quarter of 2023. At September 30, 2023, the Company’s wealth management subsidiaries had approximately $44.7 billion of assets under administration, which included $8.3 billion of assets owned by the Company and its subsidiary banks, representing an increase from the $44.5 billion of assets under administration at June 30, 2023.

    ITEM IMPACTING COMPARATIVE FINANCIAL RESULTS

    Business Combination

    On April 3, 2023, the Company completed its acquisition of Rothschild & Co Asset Management US Inc. and Rothschild & Co Risk Based Investments LLC from Rothschild & Co North America Inc. As the transaction was determined to be a business combination, the Company recorded goodwill of approximately $2.6 million on the purchase.

    WINTRUST FINANCIAL CORPORATION

    Key Operating Measures

    Wintrust’s key operating measures and growth rates for the third quarter of 2023, as compared to the second quarter of 2023 (sequential quarter) and third quarter of 2022 (linked quarter), are shown in the table below:

           % or (1)
    basis point (bp) change from
    2nd Quarter
    2023
     % or (1)
    basis point (bp) change from
    3rd Quarter
    2022
      Three Months Ended 
    (Dollars in thousands, except per share data) Sep 30, 2023 Jun 30, 2023 Sep 30, 2022 
    Net income $164,198  $154,750  $142,961 6 % 15%
    Pre-tax income, excluding provision for credit losses (non-GAAP) (2)  244,781   239,944   206,461 2   19 
    Net income per common share – Diluted  2.53   2.38   2.21 6   14 
    Cash dividends declared per common share  0.40   0.40   0.34    18 
    Net revenue (3)  574,836   560,567   502,930 3   14 
    Net interest income  462,358   447,537   401,448 3   15 
    Net interest margin  3.60%  3.64%  3.34%(4)bps 26bps
    Net interest margin – fully taxable-equivalent (non-GAAP) (2)  3.62   3.66   3.35 (4)  27 
    Net overhead ratio (4)  1.59   1.58   1.53 1   6 
    Return on average assets  1.20   1.18   1.12 2   8 
    Return on average common equity  13.35   12.79   12.31 56   104 
    Return on average tangible common equity (non-GAAP) (2)  15.73   15.12   14.68 61   105 
    At end of period           
    Total assets $55,555,246  $54,286,176  $52,382,939 9 % 6%
    Total loans (5)  41,446,032   41,023,408   38,167,613 4   9 
    Total deposits  44,992,686   44,038,707   42,797,191 9   5 
    Total shareholders’ equity  5,015,613   5,041,912   4,637,980 (2)  8 
                       

    (1)   Period-end balance sheet percentage changes are annualized.
    (2)   See Table 17: Supplemental Non-GAAP Financial Measures/Ratios for additional information on this performance measure/ratio.
    (3)   Net revenue is net interest income plus non-interest income.
    (4)   The net overhead ratio is calculated by netting total non-interest expense and total non-interest income, annualizing this amount, and dividing by that period’s average total assets. A lower ratio indicates a higher degree of efficiency.
    (5)   Excludes mortgage loans held-for-sale.

    Certain returns, yields, performance ratios, or quarterly growth rates are “annualized” in this presentation to represent an annual time period. This is done for analytical purposes to better discern, for decision-making purposes, underlying performance trends when compared to full-year or year-over-year amounts. For example, a 5% growth rate for a quarter would represent an annualized 20% growth rate. Additional supplemental financial information showing quarterly trends can be found on the Company’s website at www.wintrust.com by choosing “Financial Reports” under the “Investor Relations” heading, and then choosing “Financial Highlights.”

    WINTRUST FINANCIAL CORPORATION
    Selected Financial Highlights

      Three Months EndedNine Months Ended
    (Dollars in thousands, except per share data) Sep 30,
    2023
     Jun 30,
    2023
     Mar 31,
    2023
     Dec 31,
    2022
     Sep 30,
    2022
    Sep 30,
    2023
     Sep 30,
    2022
    Selected Financial Condition Data (at end of period):   
    Total assets $55,555,246  $54,286,176  $52,873,511  $52,949,649  $52,382,939    
    Total loans (1)  41,446,032   41,023,408   39,565,471   39,196,485   38,167,613    
    Total deposits  44,992,686   44,038,707   42,718,211   42,902,544   42,797,191    
    Total shareholders’ equity  5,015,613   5,041,912   5,015,506   4,796,838   4,637,980    
    Selected Statements of Income Data:   
    Net interest income $462,358  $447,537  $457,995  $456,816  $401,448 $1,367,890  $1,038,546 
    Net revenue (2)  574,836   560,567   565,764   550,655   502,930  1,701,167   1,405,760 
    Net income  164,198   154,750   180,198   144,817   142,961  499,146   364,865 
    Pre-tax income, excluding provision for credit losses (non-GAAP) (3)  244,781   239,944   266,595   242,819   206,461  751,320   536,325 
    Net income per common share – Basic  2.57   2.41   2.84   2.27   2.24  7.82   5.86 
    Net income per common share – Diluted  2.53   2.38   2.80   2.23   2.21  7.71   5.78 
    Cash dividends declared per common share  0.40   0.40   0.40   0.34   0.34  1.20   1.02 
    Selected Financial Ratios and Other Data:   
    Performance Ratios:   
    Net interest margin  3.60%  3.64%  3.81%  3.71%  3.34% 3.68%  2.96%
    Net interest margin – fully taxable-equivalent (non-GAAP) (3)  3.62   3.66   3.83   3.73   3.35  3.70   2.97 
    Non-interest income to average assets  0.82   0.86   0.84   0.71   0.79  0.84   0.98 
    Non-interest expense to average assets  2.41   2.44   2.33   2.34   2.32  2.39   2.33 
    Net overhead ratio (4)  1.59   1.58   1.49   1.63   1.53  1.55   1.35 
    Return on average assets  1.20   1.18   1.40   1.10   1.12  1.26   0.98 
    Return on average common equity  13.35   12.79   15.67   12.72   12.31  13.91   10.96 
    Return on average tangible common equity (non-GAAP) (3)  15.73   15.12   18.55   15.21   14.68  16.43   13.21 
    Average total assets $54,381,981  $52,601,953  $52,075,318  $52,087,618  $50,722,694 $53,028,199  $49,863,793 
    Average total shareholders’ equity  5,083,883   5,044,718   4,895,271   4,710,856   4,795,387  5,008,648   4,608,399 
    Average loans to average deposits ratio  92.4%  94.3%  93.0%  90.5%  88.8% 93.2%  86.5%
    Period-end loans to deposits ratio  92.1   93.2   92.6   91.4   89.2    
    Common Share Data at end of period:   
    Market price per common share $75.50  $72.62  $72.95  $84.52  $81.55    
    Book value per common share  75.19   75.65   75.24   72.12   69.56    
    Tangible book value per common share (non-GAAP) (3)  64.07   64.50   64.22   61.00   58.42    
    Common shares outstanding  61,222,058   61,197,676   61,176,415   60,794,008   60,743,335    
    Other Data at end of period:   
    Tier 1 leverage ratio (5)  9.2%  9.3%  9.1%  8.8%  8.8%   
    Risk-based capital ratios:             
    Tier 1 capital ratio (5)  10.2   10.1   10.1   10.0   9.9    
    Common equity tier 1 capital ratio (5)  9.3   9.3   9.2   9.1   9.0    
    Total capital ratio (5)  12.0   12.0   12.1   11.9   11.8    
    Allowance for credit losses (6) $399,531  $387,786  $376,261  $357,936  $315,338    
    Allowance for loan and unfunded lending-related commitment losses to total loans  0.96%  0.94%  0.95%  0.91%  0.83%   
    Number of:             
    Bank subsidiaries  15   15   15   15   15    
    Banking offices  174   175   174   174   174    
                            

    (1)   Excludes mortgage loans held-for-sale.
    (2)   Net revenue is net interest income plus non-interest income.
    (3)   See Table 17: Supplemental Non-GAAP Financial Measures/Ratios for additional information on this performance measure/ratio.
    (4)   The net overhead ratio is calculated by netting total non-interest expense and total non-interest income, annualizing this amount, and dividing by that period’s average total assets. A lower ratio indicates a higher degree of efficiency.
    (5)   Capital ratios for current quarter-end are estimated.
    (6)   The allowance for credit losses includes the allowance for loan losses, the allowance for unfunded lending-related commitments and the allowance for held-to-maturity securities losses.

    WINTRUST FINANCIAL CORPORATION AND SUBSIDIARIES
    CONSOLIDATED STATEMENTS OF CONDITION

      (Unaudited) (Unaudited) (Unaudited)   (Unaudited)
      Sep 30, Jun 30, Mar 31, Dec 31, Sep 30,
    (In thousands)  2023   2023   2023   2022   2022 
    Assets          
    Cash and due from banks $418,088  $513,858  $445,928  $490,908  $489,590 
    Federal funds sold and securities purchased under resale agreements  60   59   58   58   57 
    Interest-bearing deposits with banks  2,448,570   2,163,708   1,563,578   1,988,719   3,968,605 
    Available-for-sale securities, at fair value  3,611,835   3,492,481   3,259,845   3,243,017   2,923,653 
    Held-to-maturity securities, at amortized cost  3,909,150   3,564,473   3,606,391   3,640,567   3,389,842 
    Trading account securities  1,663   3,027   102   1,127   179 
    Equity securities with readily determinable fair value  134,310   116,275   111,943   110,365   114,012 
    Federal Home Loan Bank and Federal Reserve Bank stock  204,040   195,117   244,957   224,759   178,156 
    Brokerage customer receivables  14,042   15,722   16,042   16,387   20,327 
    Mortgage loans held-for-sale, at fair value  304,808   338,728   302,493   299,935   376,160 
    Loans, net of unearned income  41,446,032   41,023,408   39,565,471   39,196,485   38,167,613 
    Allowance for loan losses  (315,039)  (302,499)  (287,972)  (270,173)  (246,110)
    Net loans  41,130,993   40,720,909   39,277,499   38,926,312   37,921,503 
    Premises, software and equipment, net  747,501   749,393   760,283   764,798   763,029 
    Lease investments, net  275,152   274,351   256,301   253,928   244,822 
    Accrued interest receivable and other assets  1,674,681   1,455,748   1,413,795   1,391,342   1,316,305 
    Trade date securities receivable        939,758   921,717    
    Goodwill  656,109   656,674   653,587   653,524   653,079 
    Other acquisition-related intangible assets  24,244   25,653   20,951   22,186   23,620 
    Total assets $55,555,246  $54,286,176  $52,873,511  $52,949,649  $52,382,939 
    Liabilities and Shareholders’ Equity          
    Deposits:          
    Non-interest-bearing $10,347,006  $10,604,915  $11,236,083  $12,668,160  $13,529,277 
    Interest-bearing  34,645,680   33,433,792   31,482,128   30,234,384   29,267,914 
    Total deposits  44,992,686   44,038,707   42,718,211   42,902,544   42,797,191 
    Federal Home Loan Bank advances  2,326,071   2,026,071   2,316,071   2,316,071   2,316,071 
    Other borrowings  643,999   665,219   583,548   596,614   447,215 
    Subordinated notes  437,731   437,628   437,493   437,392   437,260 
    Junior subordinated debentures  253,566   253,566   253,566   253,566   253,566 
    Accrued interest payable and other liabilities  1,885,580   1,823,073   1,549,116   1,646,624   1,493,656 
    Total liabilities  50,539,633   49,244,264   47,858,005   48,152,811   47,744,959 
    Shareholders’ Equity:          
    Preferred stock  412,500   412,500   412,500   412,500   412,500 
    Common stock  61,244   61,219   61,198   60,797   60,743 
    Surplus  1,933,226   1,923,623   1,913,947   1,902,474   1,891,621 
    Treasury stock  (1,966)  (1,966)  (1,966)  (304)   
    Retained earnings  3,253,332   3,120,626   2,997,263   2,849,007   2,731,844 
    Accumulated other comprehensive loss  (642,723)  (474,090)  (367,436)  (427,636)  (458,728)
    Total shareholders’ equity  5,015,613   5,041,912   5,015,506   4,796,838   4,637,980 
    Total liabilities and shareholders’ equity $55,555,246  $54,286,176  $52,873,511  $52,949,649  $52,382,939 
                         

    WINTRUST FINANCIAL CORPORATION AND SUBSIDIARIES
    CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED)

     Three Months EndedNine Months Ended
    (Dollars in thousands, except per share data)Sep 30,
    2023
     Jun 30,
    2023
     Mar 31,
    2023
     Dec 31,
    2022
     Sep 30,
    2022
    Sep 30,
    2023
     Sep 30,
    2022
    Interest income            
    Interest and fees on loans$666,260  $621,057 $558,692  $498,838  $402,689 $1,846,009  $1,008,888 
    Mortgage loans held-for-sale 4,767   4,178  3,528   3,997   5,371  12,473   17,198 
    Interest-bearing deposits with banks 26,866   16,882  13,468   20,349   15,621  57,216   23,098 
    Federal funds sold and securities purchased under resale agreements 1,157   1  70   1,263   1,845  1,228   3,640 
    Investment securities 59,164   51,243  59,943   53,092   38,569  170,350   107,508 
    Trading account securities 6   6  14   6   7  26   16 
    Federal Home Loan Bank and Federal Reserve Bank stock 3,896   3,544  3,680   2,918   2,109  11,120   5,704 
    Brokerage customer receivables 284   265  295   282   267  844   646 
    Total interest income 762,400   697,176  639,690   580,745   466,478  2,099,266   1,166,698 
    Interest expense            
    Interest on deposits 262,783   213,495  144,802   95,447   45,916  621,080   79,755 
    Interest on Federal Home Loan Bank advances 17,436   17,399  19,135   13,823   6,812  53,970   16,506 
    Interest on other borrowings 9,384   8,485  7,854   5,313   4,008  25,723   8,981 
    Interest on subordinated notes 5,491   5,523  5,488   5,520   5,485  16,502   16,484 
    Interest on junior subordinated debentures 4,948   4,737  4,416   3,826   2,809  14,101   6,426 
    Total interest expense 300,042   249,639  181,695   123,929   65,030  731,376   128,152 
    Net interest income 462,358   447,537  457,995   456,816   401,448  1,367,890   1,038,546 
    Provision for credit losses 19,923   28,514  23,045   47,646   6,420  71,482   30,943 
    Net interest income after provision for credit losses 442,435   419,023  434,950   409,170   395,028  1,296,408   1,007,603 
    Non-interest income            
    Wealth management 33,529   33,858  29,945   30,727   33,124  97,332   95,887 
    Mortgage banking 27,395   29,981  18,264   17,407   27,221  75,640   137,766 
    Service charges on deposit accounts 14,217   13,608  12,903   13,054   14,349  40,728   45,520 
    Losses (gains) on investment securities, net (2,357)  0  1,398   (6,745)  (3,103) (959)  (13,682)
    Fees from covered call options 4,215   2,578  10,391   7,956   1,366  17,184   6,177 
    Trading gains (losses), net 728   106  813   (306)  (7) 1,647   4,058 
    Operating lease income, net 13,863   12,227  13,046   12,384   12,644  39,136   43,126 
    Other 20,888   20,672  21,009   19,362   15,888  62,569   48,362 
    Total non-interest income 112,478   113,030  107,769   93,839   101,482  333,277   367,214 
    Non-interest expense            
    Salaries and employee benefits 192,338   184,923  176,781   180,331   176,095  554,042   515,776 
    Software and equipment 25,951   26,205  24,697   24,699   24,126  76,853   71,186 
    Operating lease equipment 12,020   9,816  9,833   10,078   9,448  31,669   27,930 
    Occupancy, net 21,304   19,176  18,486   17,763   17,727  58,966   53,202 
    Data processing 10,773   9,726  9,409   7,927   7,767  29,908   23,282 
    Advertising and marketing 18,169   17,794  11,946   14,279   16,600  47,909   45,139 
    Professional fees 8,887   8,940  8,163   9,267   7,544  25,990   23,821 
    Amortization of other acquisition-related intangible assets 1,408   1,499  1,235   1,436   1,492  4,142   4,680 
    FDIC insurance 9,748   9,008  8,669   6,775   7,186  27,425   21,864 
    OREO expenses, net 120   118  (207)  369   229  31   (509)
    Other 29,337   33,418  30,157   34,912   28,255  92,912   83,064 
    Total non-interest expense 330,055   320,623  299,169   307,836   296,469  949,847   869,435 
    Income before taxes 224,858   211,430  243,550   195,173   200,041  679,838   505,382 
    Income tax expense 60,660   56,680  63,352   50,356   57,080  180,692   140,517 
    Net income$164,198  $154,750 $180,198  $144,817  $142,961 $499,146  $364,865 
    Preferred stock dividends 6,991   6,991  6,991   6,991   6,991  20,973   20,973 
    Net income applicable to common shares$157,207  $147,759 $173,207  $137,826  $135,970 $478,173  $343,892 
    Net income per common share - Basic$2.57  $2.41 $2.84  $2.27  $2.24 $7.82  $5.86 
    Net income per common share - Diluted$2.53  $2.38 $2.80  $2.23  $2.21 $7.71  $5.78 
    Cash dividends declared per common share$0.40  $0.40 $0.40  $0.34  $0.34 $1.20  $1.02 
    Weighted average common shares outstanding 61,213   61,192  60,950   60,769   60,738  61,119   58,679 
    Dilutive potential common shares 964   902  873   1,096   837  888   814 
    Average common shares and dilutive common shares 62,177   62,094  61,823   61,865   61,575  62,007   59,493 
                              

    TABLE 1: LOAN PORTFOLIO MIX AND GROWTH RATES

              % Growth From (1)
    (Dollars in thousands)Sep 30,
    2023
     Jun 30,
    2023
     Mar 31,
    2023
     Dec 31,
    2022
     Sep 30,
    2022
    Dec 31,
    2022 (2)
     Sep 30,
    2022
    Balance:            
    Mortgage loans held-for-sale, excluding early buy-out exercised loans guaranteed by U.S. government agencies$190,511 $235,570 $155,687 $156,297 $216,06229% (12)%
    Mortgage loans held-for-sale, early buy-out exercised loans guaranteed by U.S. government agencies 114,297  103,158  146,806  143,638  160,098(27) (29)
    Total mortgage loans held-for-sale$304,808 $338,728 $302,493 $299,935 $376,1601% (19)%
                 
    Core loans:            
    Commercial            
    Commercial and industrial$5,894,732 $5,737,633 $5,855,035 $5,852,166 $5,818,9591% 1%
    Asset-based lending 1,396,591  1,465,848  1,482,071  1,473,344  1,545,038(7) (10)
    Municipal 676,915  653,117  655,301  668,235  608,2342  11 
    Leases 2,109,628  1,925,767  1,904,137  1,840,928  1,582,35920  33 
    PPP loans 13,744  15,337  17,195  28,923  43,658(70) (69)
    Commercial real estate            
    Residential construction 51,550  51,689  69,998  76,877  66,957(44) (23)
    Commercial construction 1,547,322  1,409,751  1,234,762  1,102,098  1,176,40754  32 
    Land 294,901  298,996  292,293  307,955  282,147(6) 5 
    Office 1,422,748  1,404,422  1,392,040  1,337,176  1,269,7299  12 
    Industrial 2,057,957  2,002,740  1,858,088  1,836,276  1,777,65816  16 
    Retail 1,341,451  1,304,083  1,309,680  1,304,444  1,331,3164  1 
    Multi-family 2,710,829  2,696,478  2,635,411  2,560,709  2,305,4338  18 
    Mixed use and other 1,519,422  1,440,652  1,446,806  1,425,412  1,368,5379  11 
    Home equity 343,258  336,974  337,016  332,698  328,8224  4 
    Residential real estate            
    Residential real estate loans for investment 2,538,630  2,455,392  2,309,393  2,207,595  2,086,79520  22 
    Residential mortgage loans, early buy-out eligible loans guaranteed by U.S. government agencies 97,911  117,024  119,301  80,701  57,16129  71 
    Residential mortgage loans, early buy-out exercised loans guaranteed by U.S. government agencies 71,062  70,824  76,851  84,087  91,503(21) (22)
    Total core loans$24,088,651 $23,386,727 $22,995,378 $22,519,624 $21,740,7139% 11%
                 
    Niche loans:            
    Commercial            
    Franchise$1,074,162 $1,091,164 $1,131,913 $1,169,623 $1,118,478(11)% (4)%
    Mortgage warehouse lines of credit 245,450  381,043  235,684  237,392  297,3745  (17)
    Community Advantage - homeowners association 424,054  405,042  389,922  380,875  365,96715  16 
    Insurance agency lending 890,197  925,520  905,727  897,678  879,183(1) 1 
    Premium Finance receivables            
    U.S. property & casualty insurance 5,815,346  5,900,228  5,043,486  5,103,820  4,983,79519  17 
    Canada property & casualty insurance 907,401  862,470  695,394  745,639  729,54529  24 
    Life insurance 7,931,808  8,039,273  8,125,802  8,090,998  8,004,856(3) (1)
    Consumer and other 68,963  31,941  42,165  50,836  47,70248  45 
    Total niche loans$17,357,381 $17,636,681 $16,570,093 $16,676,861 $16,426,9005% 6%
                 
    Total loans, net of unearned income$41,446,032 $41,023,408 $39,565,471 $39,196,485 $38,167,6138% 9%
                        

    (1)   NM - Not meaningful.
    (2)   Annualized.

    TABLE 2: DEPOSIT PORTFOLIO MIX AND GROWTH RATES

              % Growth From
    (Dollars in thousands)Sep 30,
    2023
     Jun 30,
    2023
     Mar 31,
    2023
     Dec 31,
    2022
     Sep 30,
    2022
    Jun 30,
    2023 (1)
     Sep 30,
    2022
    Balance:            
    Non-interest-bearing$10,347,006  $10,604,915  $11,236,083  $12,668,160  $13,529,277 (10)% (24)%
    NOW and interest-bearing demand deposits 6,006,114   5,814,836   5,576,558   5,591,986   5,676,122 13  6 
    Wealth management deposits (2) 1,788,099   1,417,984   1,809,933   2,463,833   2,988,195 104  (40)
    Money market 14,478,504   14,523,124   13,552,277   12,886,795   12,538,489 (1) 15 
    Savings 5,584,294   5,321,578   5,192,108   4,556,635   3,988,790 20  40 
    Time certificates of deposit 6,788,669   6,356,270   5,351,252   4,735,135   4,076,318 27  67 
    Total deposits$44,992,686  $44,038,707  $42,718,211  $42,902,544  $42,797,191 9% 5%
    Mix:            
    Non-interest-bearing 23%  24%  26%  30%  32%   
    NOW and interest-bearing demand deposits 13   13   13   13   13    
    Wealth management deposits (2) 4   3   4   5   7    
    Money market 32   33   32   30   29    
    Savings 13   12   12   11   9    
    Time certificates of deposit 15   15   13   11   10    
    Total deposits 100%  100%  100%  100%  100%   
                           

    (1)   Annualized.
    (2)   Represents deposit balances of the Company’s subsidiary banks from brokerage customers of Wintrust Investments, Chicago Deferred Exchange Company, LLC (“CDEC”), trust and asset management customers of the Company.

    TABLE 3: TIME CERTIFICATES OF DEPOSIT MATURITY/RE-PRICING ANALYSIS
    As of September 30, 2023

    (Dollars in thousands) Total Time
    Certificates of
    Deposit
     Weighted-Average
    Rate of Maturing
    Time Certificates
    of Deposit
    1-3 months $987,384 3.36%
    4-6 months  1,674,674 3.47 
    7-9 months  1,984,259 4.51 
    10-12 months  1,382,970 4.54 
    13-18 months  566,457 3.28 
    19-24 months  117,916 2.54 
    24+ months  75,009 1.62 
    Total $6,788,669 3.92%
           

    TABLE 4: QUARTERLY AVERAGE BALANCES

      Average Balance for three months ended,
      Sep 30, Jun 30, Mar 31, Dec 31, Sep 30,
    (In thousands)  2023   2023   2023   2022   2022 
    Interest-bearing deposits with banks, securities purchased under resale agreements and cash equivalents (1) $2,053,568  $1,454,057  $1,235,748  $2,449,889  $3,039,907 
    Investment securities (2)  7,706,285   7,252,582   7,956,722   7,310,383   6,655,215 
    FHLB and FRB stock  201,252   223,813   233,615   185,290   142,304 
    Liquidity management assets (3)  9,961,105   8,930,452   9,426,085   9,945,562   9,837,426 
    Other earning assets (3)(4)  17,879   17,401   18,445   18,585   21,805 
    Mortgage loans held-for-sale  319,099   307,683   270,966   308,639   455,342 
    Loans, net of unearned income (3)(5)  40,707,042   40,106,393   39,093,368   38,566,871   37,431,126 
    Total earning assets (3)  51,005,125   49,361,929   48,808,864   48,839,657   47,745,699 
    Allowance for loan and investment security losses  (319,491)  (302,627)  (282,704)  (252,827)  (260,270)
    Cash and due from banks  459,819   481,510   488,457   475,691   458,263 
    Other assets  3,236,528   3,061,141   3,060,701   3,025,097   2,779,002 
    Total assets $54,381,981  $52,601,953  $52,075,318  $52,087,618  $50,722,694 
               
    NOW and interest-bearing demand deposits $5,815,155  $5,540,597  $5,271,740  $5,598,291  $5,789,368 
    Wealth management deposits  1,512,765   1,545,626   2,167,081   2,883,247   3,078,764 
    Money market accounts  14,155,446   13,735,924   12,533,468   12,319,842   12,037,412 
    Savings accounts  5,472,535   5,206,609   4,830,322   4,403,113   3,862,579 
    Time deposits  6,495,906   5,603,024   5,041,638   4,023,232   3,675,930 
    Interest-bearing deposits  33,451,807   31,631,780   29,844,249   29,227,725   28,444,053 
    Federal Home Loan Bank advances  2,241,292   2,227,106   2,474,882   2,088,201   1,403,573 
    Other borrowings  657,454   625,757   602,937   480,553   478,909 
    Subordinated notes  437,658   437,545   437,422   437,312   437,191 
    Junior subordinated debentures  253,566   253,566   253,566   253,566   253,566 
    Total interest-bearing liabilities  37,041,777   35,175,754   33,613,056   32,487,357   31,017,292 
    Non-interest-bearing deposits  10,612,009   10,908,022   12,171,631   13,404,036   13,731,219 
    Other liabilities  1,644,312   1,473,459   1,395,360   1,485,369   1,178,796 
    Equity  5,083,883   5,044,718   4,895,271   4,710,856   4,795,387 
    Total liabilities and shareholders’ equity $54,381,981  $52,601,953  $52,075,318  $52,087,618  $50,722,694 
               
    Net free funds/contribution (6) $13,963,348  $14,186,175  $15,195,808  $16,352,300  $16,728,407 
                         

    (1)   Includes interest-bearing deposits from banks and securities purchased under resale agreements with original maturities of greater than three months. Cash equivalents include federal funds sold and securities purchased under resale agreements with original maturities of three months or less.
    (2)   Investment securities includes investment securities classified as available-for-sale and held-to-maturity, and equity securities with readily determinable fair values. Equity securities without readily determinable fair values are included within other assets.
    (3)   See Table 17: Supplemental Non-GAAP Financial Measures/Ratios for additional information on this performance measure/ratio.
    (4)   Other earning assets include brokerage customer receivables and trading account securities.
    (5)   Loans, net of unearned income, include non-accrual loans.
    (6)   Net free funds are the difference between total average earning assets and total average interest-bearing liabilities. The estimated contribution to net interest margin from net free funds is calculated using the rate paid for total interest-bearing liabilities.

    TABLE 5: QUARTERLY NET INTEREST INCOME

      Net Interest Income for three months ended,
      Sep 30, Jun 30, Mar 31, Dec 31, Sep 30,
    (In thousands)  2023   2023   2023   2022   2022 
    Interest income:          
    Interest-bearing deposits with banks, securities purchased under resale agreements and cash equivalents $28,022  $16,882  $13,538  $21,612  $17,466 
    Investment securities  59,737   51,795   60,494   53,630   39,071 
    FHLB and FRB stock  3,896   3,544   3,680   2,918   2,109 
    Liquidity management assets (1)  91,655   72,221   77,712   78,160   58,646 
    Other earning assets (1)  291   272   313   289   275 
    Mortgage loans held-for-sale  4,767   4,178   3,528   3,997   5,371 
    Loans, net of unearned income (1)  668,183   622,939   560,564   500,432   403,719 
    Total interest income $764,896  $699,610  $642,117  $582,878  $468,011 
               
    Interest expense:          
    NOW and interest-bearing demand deposits $36,001  $29,178  $18,772  $14,982  $8,041 
    Wealth management deposits  9,350   9,097   12,258   14,079   11,068 
    Money market accounts  124,742   106,630   68,276   45,468   18,916 
    Savings accounts  31,784   25,603   15,816   8,421   2,130 
    Time deposits  60,906   42,987   29,680   12,497   5,761 
    Interest-bearing deposits  262,783   213,495   144,802   95,447   45,916 
    Federal Home Loan Bank advances  17,436   17,399   19,135   13,823   6,812 
    Other borrowings  9,384   8,485   7,854   5,313   4,008 
    Subordinated notes  5,491   5,523   5,488   5,520   5,485 
    Junior subordinated debentures  4,948   4,737   4,416   3,826   2,809 
    Total interest expense $300,042  $249,639  $181,695  $123,929  $65,030 
               
    Less:  Fully taxable-equivalent adjustment  (2,496)  (2,434)  (2,427)  (2,133)  (1,533)
    Net interest income (GAAP) (2)   462,358   447,537   457,995   456,816   401,448 
    Fully taxable-equivalent adjustment  2,496   2,434   2,427   2,133   1,533 
    Net interest income, fully taxable-equivalent (non-GAAP) (2)  $464,854  $449,971  $460,422  $458,949  $402,981 
                         

    (1)   Interest income on tax-advantaged loans, trading securities and investment securities reflects a taxable-equivalent adjustment based on the marginal federal corporate tax rate in effect as of the applicable period.
    (2)   See Table 17: Supplemental Non-GAAP Financial Measures/Ratios for additional information on this performance measure/ratio.

    TABLE 6: QUARTERLY NET INTEREST MARGIN

      Net Interest Margin for three months ended,
      Sep 30,
    2023
     Jun 30,
    2023
     Mar 31,
    2023
     Dec 31,
    2022
     Sep 30,
    2022
    Yield earned on:          
    Interest-bearing deposits with banks, securities purchased under resale agreements and cash equivalents 5.41% 4.66% 4.44% 3.50% 2.28%
    Investment securities 3.08  2.86  3.08  2.91  2.33 
    FHLB and FRB stock 7.68  6.35  6.39  6.25  5.88 
    Liquidity management assets 3.65  3.24  3.34  3.12  2.37 
    Other earning assets 6.47  6.27  6.87  6.17  5.01 
    Mortgage loans held-for-sale 5.93  5.45  5.28  5.14  4.68 
    Loans, net of unearned income 6.51  6.23  5.82  5.15  4.28 
    Total earning assets 5.95% 5.68% 5.34% 4.73% 3.89%
               
    Rate paid on:          
    NOW and interest-bearing demand deposits 2.46% 2.11% 1.44% 1.06% 0.55%
    Wealth management deposits 2.45  2.36  2.29  1.94  1.43 
    Money market accounts 3.50  3.11  2.21  1.46  0.62 
    Savings accounts 2.30  1.97  1.33  0.76  0.22 
    Time deposits 3.72  3.08  2.39  1.23  0.62 
    Interest-bearing deposits 3.12  2.71  1.97  1.30  0.64 
    Federal Home Loan Bank advances 3.09  3.13  3.14  2.63  1.93 
    Other borrowings 5.66  5.44  5.28  4.39  3.32 
    Subordinated notes 4.98  5.06  5.02  5.05  5.02 
    Junior subordinated debentures 7.74  7.49  6.97  5.90  4.33 
    Total interest-bearing liabilities 3.21% 2.85% 2.19% 1.51% 0.83%
               
    Interest rate spread  (1)(2) 2.74% 2.83% 3.15% 3.22% 3.06%
    Less:  Fully taxable-equivalent adjustment (0.02) (0.02) (0.02) (0.02) (0.01)
    Net free funds/contribution (3) 0.88  0.83  0.68  0.51  0.29 
    Net interest margin (GAAP) (2) 3.60% 3.64% 3.81% 3.71% 3.34%
    Fully taxable-equivalent adjustment 0.02  0.02  0.02  0.02  0.01 
    Net interest margin, fully taxable-equivalent (non-GAAP) (2) 3.62% 3.66% 3.83% 3.73% 3.35%
                    

    (1)   Interest rate spread is the difference between the yield earned on earning assets and the rate paid on interest-bearing liabilities.
    (2)   See Table 17: Supplemental Non-GAAP Financial Measures/Ratios for additional information on this performance measure/ratio.
    (3)   Net free funds are the difference between total average earning assets and total average interest-bearing liabilities. The estimated contribution to net interest margin from net free funds is calculated using the rate paid for total interest-bearing liabilities.

    TABLE 7: YEAR-TO-DATE AVERAGE BALANCES, AND NET INTEREST INCOME AND MARGIN

     Average Balance
    for nine months ended,
    Interest
    for nine months ended,
    Yield/Rate
    for nine months ended,
    (Dollars in thousands)Sep 30,
    2023
     Sep 30,
    2022
    Sep 30,
    2023
     Sep 30,
    2022
    Sep 30,
    2023
     Sep 30,
    2022
    Interest-bearing deposits with banks, securities purchased under resale agreements and cash equivalents (1)$1,584,120  $3,617,498 $58,443  $26,738 4.93% 0.99%
    Investment securities (2) 7,637,612   6,542,077  172,025   108,947 3.01  2.23 
    FHLB and FRB stock 219,442   138,405  11,120   5,704 6.77  5.51 
    Liquidity management assets (3)(4)$9,441,174  $10,297,980 $241,588  $141,389 3.42% 1.84%
    Other earning assets (3)(4)(5) 17,906   23,673  876   666 6.54  3.76 
    Mortgage loans held-for-sale 299,426   559,258  12,473   17,198 5.57  4.11 
    Loans, net of unearned income (3)(4)(6) 39,974,840   36,050,185  1,851,686   1,010,913 6.19  3.75 
    Total earning assets (4)$49,733,346  $46,931,096 $2,106,623  $1,170,166 5.66% 3.33%
    Allowance for loan and investment security losses (301,742)  (257,992)      
    Cash and due from banks 476,490   472,127       
    Other assets 3,120,105   2,718,562       
    Total assets$53,028,199  $49,863,793       
              
    NOW and interest-bearing demand deposits$5,544,488  $5,273,115 $83,949  $12,584 2.02% 0.32%
    Wealth management deposits 1,739,427   2,808,709  30,705   15,671 2.36  0.75 
    Money market accounts 13,480,887   12,232,024  299,649   35,123 2.97  0.38 
    Savings accounts 5,172,174   3,883,092  73,203   2,813 1.89  0.10 
    Time deposits 5,718,850   3,741,014  133,574   13,564 3.12  0.48 
    Interest-bearing deposits$31,655,826  $27,937,954 $621,080  $79,755 2.62% 0.38%
    Federal Home Loan Bank advances 2,313,571   1,281,273  53,970   16,506 3.12  1.72 
    Other borrowings 628,915   487,595  25,723   8,981 5.47  2.46 
    Subordinated notes 437,543   437,081  16,502   16,484 5.04  5.03 
    Junior subordinated debentures 253,566   253,566  14,101   6,426 7.44  3.34 
    Total interest-bearing liabilities$35,289,421  $30,397,469 $731,376  $128,152 2.77% 0.56%
    Non-interest-bearing deposits 11,224,841   13,756,793       
    Other liabilities 1,505,289   1,101,132       
    Equity 5,008,648   4,608,399       
    Total liabilities and shareholders’ equity$53,028,199  $49,863,793       
    Interest rate spread (4)(7)      2.89% 2.77%
    Less: Fully taxable-equivalent adjustment    (7,357)  (3,468)(0.02) (0.01)
    Net free funds/contribution (8)$14,443,925  $16,533,627    0.81  0.20 
    Net interest income/margin (GAAP) (4)   $1,367,890  $1,038,546 3.68% 2.96%
    Fully taxable-equivalent adjustment    7,357   3,468 0.02  0.01 
    Net interest income/margin, fully taxable-equivalent (non-GAAP) (4)    $1,375,247  $1,042,014 3.70% 2.97%
                    

    (1)   Includes interest-bearing deposits from banks and securities purchased under resale agreements with original maturities of greater than three months. Cash equivalents include federal funds sold and securities purchased under resale agreements with original maturities of three months or less.
    (2)   Investment securities includes investment securities classified as available-for-sale and held-to-maturity, and equity securities with readily determinable fair values. Equity securities without readily determinable fair values are included within other assets.
    (3)   Interest income on tax-advantaged loans, trading securities and investment securities reflects a taxable-equivalent adjustment based on the marginal federal corporate tax rate in effect as of the applicable period.
    (4)   See Table 17: Supplemental Non-GAAP Financial Measures/Ratios for additional information on this performance measure/ratio.
    (5)   Other earning assets include brokerage customer receivables and trading account securities.
    (6)   Loans, net of unearned income, include non-accrual loans.
    (7)   Interest rate spread is the difference between the yield earned on earning assets and the rate paid on interest-bearing liabilities.
    (8)   Net free funds are the difference between total average earning assets and total average interest-bearing liabilities. The estimated contribution to net interest margin from net free funds is calculated using the rate paid for total interest-bearing liabilities.

    TABLE 8: INTEREST RATE SENSITIVITY

    As an ongoing part of its financial strategy, the Company attempts to manage the impact of fluctuations in market interest rates on net interest income. Management measures its exposure to changes in interest rates by modeling many different interest rate scenarios.

    The following interest rate scenarios display the percentage change in net interest income over a one-year time horizon assuming increases and decreases of 100 and 200 basis points. The Static Shock Scenario results incorporate actual cash flows and repricing characteristics for balance sheet instruments following an instantaneous, parallel change in market rates based upon a static (i.e. no growth or constant) balance sheet. Conversely, the Ramp Scenario results incorporate management’s projections of future volume and pricing of each of the product lines following a gradual, parallel change in market rates over twelve months. Actual results may differ from these simulated results due to timing, magnitude, and frequency of interest rate changes as well as changes in market conditions and management strategies. The interest rate sensitivity for both the Static Shock and Ramp Scenario is as follows:

    Static Shock Scenario +200 Basis
    Points
     +100 Basis
    Points
     -100 Basis
    Points
     -200 Basis
    Points
    Sep 30, 2023 3.3% 1.9% (2.0)% (5.2)%
    Jun 30, 2023 5.7  2.9  (2.9) (7.9)
    Mar 31, 2023 4.2  2.4  (2.4) (7.3)
    Dec 31, 2022 7.2  3.8  (5.0) (12.1)
    Sep 30, 2022 12.9  7.1  (8.7) (18.9)


    Ramp Scenario+200 Basis
    Points
     +100 Basis
    Points
     -100 Basis
    Points
     -200 Basis
    Points
    Sep 30, 20231.7% 1.2% (0.5)% (2.4)%
    Jun 30, 20232.9  1.8  (0.9) (3.4)
    Mar 31, 20233.0  1.7  (1.3) (3.4)
    Dec 31, 20225.6  3.0  (2.9) (6.8)
    Sep 30, 20226.5  3.6  (3.9) (8.6)
                

    As shown above, the magnitude of potential changes in net interest income in various interest rate scenarios has continued to diminish. Given the recent unprecedented rise in interest rates, the Company has made a conscious effort to reposition its exposure to changing interest rates given the uncertainty of the future interest rate environment. To this end, management has executed various derivative instruments including collars and receive fixed swaps to hedge variable rate loan exposures and originated a higher percentage of its loan originations in longer term fixed rate loans. The Company will continue to monitor current and projected interest rates and expects to execute additional derivatives to mitigate potential fluctuations in the net interest margin in future years.

    TABLE 9: MATURITIES AND SENSITIVITIES TO CHANGES IN INTEREST RATES

     Loans repricing or contractual maturity period
    As of September 30, 2023One year or
    less
     From one to
    five years
     From five to
    fifteen years
     After fifteen
    years
     Total
    (In thousands)    
    Commercial         
    Fixed rate$532,313 $2,805,566 $1,740,199 $19,102 $5,097,180
    Variable rate 7,626,902  1,391      7,628,293
    Total commercial$8,159,215 $2,806,957 $1,740,199 $19,102 $12,725,473
    Commercial real estate         
    Fixed rate 637,462  2,891,879  546,918  48,296  4,124,555
    Variable rate 6,813,010  7,872  743    6,821,625
    Total commercial real estate$7,450,472 $2,899,751 $547,661 $48,296 $10,946,180
    Home equity         
    Fixed rate 10,785  2,398    29  13,212
    Variable rate 330,046        330,046
    Total home equity$340,831 $2,398 $ $29 $343,258
    Residential real estate         
    Fixed rate 16,676  3,817  30,733  1,063,669  1,114,895
    Variable rate 74,016  268,720  1,249,972    1,592,708
    Total residential real estate$90,692 $272,537 $1,280,705 $1,063,669 $2,707,603
    Premium finance receivables - property & casualty         
    Fixed rate 6,612,136  110,611      6,722,747
    Variable rate         
    Total premium finance receivables - property & casualty$6,612,136 $110,611 $ $ $6,722,747
    Premium finance receivables - life insurance         
    Fixed rate 137,889  594,399  3,978    736,266
    Variable rate 7,195,542        7,195,542
    Total premium finance receivables - life insurance$7,333,431 $594,399 $3,978 $ $7,931,808
    Consumer and other         
    Fixed rate 21,528  6,741  54  469  28,792
    Variable rate 40,171        40,171
    Total consumer and other$61,699 $6,741 $54 $469 $68,963
              
    Total per category         
    Fixed rate 7,968,789  6,415,411  2,321,882  1,131,565  17,837,647
    Variable rate 22,079,687  277,983  1,250,715    23,608,385
    Total loans, net of unearned income$30,048,476 $6,693,394 $3,572,597 $1,131,565 $41,446,032
              
    Variable Rate Loan Pricing by Index:         
    SOFR tenors        $12,798,760
    One- year CMT         5,998,547
    Prime         3,627,121
    Ameribor tenors         329,220
    Twelve-month LIBOR         38,888
    Other U.S. Treasury tenors         38,760
    BSBY tenors         36,145
    Other         740,944
    Total variable rate        $23,608,385
               

    SOFR - Secured Overnight Financing Rate.
    CMT - Constant Maturity Treasury Rate.
    Ameribor - American Interbank Offered Rate.

    LIBOR - London Interbank Offered Rate.
    BSBY - Bloomberg Short Term Bank Yield Index.

    Graph available at the following link:

    http://ml.globenewswire.com/Resource/Download/3703bae4-a3c7-4b2a-b82a-8dd479f16cf6

    Source: Bloomberg

    As noted in the table on the previous page, the majority of the Company’s portfolio is tied to SOFR and CMT indices which, as shown in the table above, do not mirror the same changes as the Prime rate which has historically moved when the Federal Reserve raises or lowers interest rates. Specifically, the Company has variable rate loans of $10.0 billion tied to one-month SOFR and $6.0 billion tied to one-year CMT. The above chart shows:

      Basis Point (bp) Change in
      1-month
    SOFR
     One- year
    CMT
     Prime 
    Third Quarter 2023 18bps6bps25bps
    Second Quarter 2023 34 76 25 
    First Quarter 2023 44 -9 50 
    Fourth Quarter 2022 132 68 125 
    Third Quarter 2022 135 125 150 
            

    TABLE 10: ALLOWANCE FOR CREDIT LOSSES

      Three Months EndedNine Months Ended
      Sep 30, Jun 30, Mar 31, Dec 31, Sep 30,Sep 30, Sep 30,
    (Dollars in thousands)  2023   2023   2023   2022   2022  2023   2022 
    Allowance for credit losses at beginning of period $387,786  $376,261  $357,936  $315,338  $312,192 $357,936  $299,731 
    Cumulative effect adjustment from the adoption of ASU 2022-02        741        741    
    Provision for credit losses  19,923   28,514   23,045   47,646   6,420  71,482   30,943 
    Other adjustments  (60)  41   4   31   (105) (15)  (139)
    Charge-offs:             
    Commercial  2,427   5,629   2,543   3,019   780  10,599   11,122 
    Commercial real estate  1,713   8,124   5   538   24  9,842   841 
    Home equity  227            43  227   432 
    Residential real estate  78            5  78   471 
    Premium finance receivables - property & casualty  5,830   4,519   4,629   3,629   6,037  14,978   10,611 
    Premium finance receivables - life insurance  18   134   21   28     173   7 
    Consumer and other  184   110   153      635  447   1,081 
    Total charge-offs  10,477   18,516   7,351   7,214   7,524  36,344   24,565 
    Recoveries:             
    Commercial  1,162   505   392   691   2,523  2,059   4,057 
    Commercial real estate  243   25   100   61   55  368   640 
    Home equity  33   37   35   65   38  105   254 
    Residential real estate  1   6   4   6   60  11   71 
    Premium finance receivables - property & casualty  906   890   1,314   1,279   1,648  3,110   4,243 
    Premium finance receivables - life insurance        9        9    
    Consumer and other  14   23   32   33   31  69   103 
    Total recoveries  2,359   1,486   1,886   2,135   4,355  5,731   9,368 
    Net charge-offs  (8,118)  (17,030)  (5,465)  (5,079)  (3,169) (30,613)  (15,197)
    Allowance for credit losses at period end $399,531  $387,786  $376,261  $357,936  $315,338 $399,531  $315,338 
                  
    Annualized net charge-offs (recoveries) by category as a percentage of its own respective category’s average:   
    Commercial  0.04%  0.16%  0.07%  0.08% (0.06)% 0.09%  0.08%
    Commercial real estate  0.05   0.31   0.00   0.02   0.00  0.12   0.00 
    Home equity  0.23   (0.04)  (0.04)  (0.08)  0.01  0.05   0.07 
    Residential real estate  0.01   0.00   0.00   0.00   (0.01) 0.00   0.03 
    Premium finance receivables - property & casualty  0.29   0.24   0.23   0.16   0.30  0.26   0.16 
    Premium finance receivables - life insurance  0.00   0.01   0.00   0.00     0.00   0.00 
    Consumer and other  0.65   0.45   0.74   (0.16)  4.02  0.60   2.19 
    Total loans, net of unearned income  0.08%  0.17%  0.06%  0.05%  0.03% 0.10   0.06%
                  
    Loans at period end $41,446,032  $41,023,408  $39,565,471  $39,196,485  $38,167,613    
    Allowance for loan losses as a percentage of loans at period end  0.76%  0.74%  0.73%  0.69%  0.64%   
    Allowance for loan and unfunded lending-related commitment losses as a percentage of loans at period end  0.96   0.94   0.95   0.91   0.83    
                            

    TABLE 11: ALLOWANCE AND PROVISION FOR CREDIT LOSSES BY COMPONENT

      Three Months EndedNine Months Ended
      Sep 30, Jun 30, Mar 31, Dec 31, Sep 30,Sep 30, Sep 30,
    (In thousands)  2023   2023   2023  2022  2022  2023  2022
    Provision for loan losses $20,717  $31,516  $22,520  $29,110 $(2,385)$74,753  $13,611
    Provision for unfunded lending-related commitments losses  (769)  (2,945)  550   18,358  8,578  (3,164)  17,100
    Provision for held-to-maturity securities losses  (25)  (57)  (25)  178  227  (107)  232
    Provision for credit losses $19,923  $28,514  $23,045  $47,646 $6,420 $71,482  $30,943
                  
    Allowance for loan losses $315,039  $302,499  $287,972  $270,173 $246,110    
    Allowance for unfunded lending-related commitments losses  84,111   84,881   87,826   87,275  68,918    
    Allowance for loan losses and unfunded lending-related commitments losses  399,150   387,380   375,798   357,448  315,028    
    Allowance for held-to-maturity securities losses  381   406   463   488  310    
    Allowance for credit losses $399,531  $387,786  $376,261  $357,936 $315,338    
                           

    TABLE 12: ALLOWANCE BY LOAN PORTFOLIO

    The table below summarizes the calculation of allowance for loan losses and allowance for unfunded lending-related commitments losses for the Company’s loan portfolios as well as core and niche portfolios, as of September 30, 2023, June 30, 2023 and March 31, 2023.

     As of Sep 30, 2023As of Jun 30, 2023As of Mar 31, 2023
    (Dollars in thousands)Recorded
    Investment
     Calculated
    Allowance
     % of its
    category’s balance
    Recorded
    Investment
     Calculated
    Allowance
     % of its
    category’s balance
    Recorded
    Investment
     Calculated
    Allowance
     % of its
    category’s balance
    Commercial:               
    Commercial, industrial and other$12,725,473 $151,488 1.19%$12,600,471 $143,142 1.14%$12,576,985 $149,501 1.19%
    Commercial real estate:               
    Construction and development 1,893,773  90,622 4.79  1,760,436  86,725 4.93  1,597,053  75,069 4.70 
    Non-construction 9,052,407  125,096 1.38  8,848,375  128,971 1.46  8,642,025  119,711 1.39 
    Home equity 343,258  7,080 2.06  336,974  6,967 2.07  337,016  7,728 2.29 
    Residential real estate 2,707,603  12,659 0.47  2,643,240  12,252 0.46  2,505,545  11,434 0.46 
    Premium finance receivables               
    Commercial insurance loans 6,722,747  11,132 0.17  6,762,698  8,347 0.12  5,738,880  11,248 0.20 
    Life insurance loans 7,931,808  688 0.01  8,039,273  699 0.01  8,125,802  707 0.01 
    Consumer and other 68,963  385 0.56  31,941  277 0.87  42,165  400 0.95 
    Total loans, net of unearned income$41,446,032 $399,150 0.96%$41,023,408 $387,380 0.94%$39,565,471 $375,798 0.95%
                    
    Total core loans (1)$24,088,651 $363,873 1.51%$23,386,727 $350,930 1.50%$22,995,378 $334,910 1.46%
    Total niche loans (1) 17,357,381  35,277 0.20  17,636,681  36,450 0.21  16,570,093  40,888 0.25 
                    
                    

    (1)   See Table 1 for additional detail on core and niche loans.

    TABLE 13: LOAN PORTFOLIO AGING

    (In thousands) Sep 30, 2023 Jun 30, 2023 Mar 31, 2023 Dec 31, 2022 Sep 30, 2022
    Loan Balances:          
    Commercial          
    Nonaccrual $43,569 $40,460 $47,950 $35,579 $44,293
    90+ days and still accruing  200  573    462  237
    60-89 days past due  22,889  22,808  10,755  21,128  24,641
    30-59 days past due  35,681  48,970  95,593  56,696  34,917
    Current  12,623,134  12,487,660  12,422,687  12,435,299  12,155,162
    Total commercial $12,725,473 $12,600,471 $12,576,985 $12,549,164 $12,259,250
    Commercial real estate          
    Nonaccrual $17,043 $18,483 $11,196 $6,387 $10,477
    90+ days and still accruing  1,092        
    60-89 days past due  7,395  1,054  20,539  2,244  6,041
    30-59 days past due  60,984  14,218  72,680  30,675  29,971
    Current  10,859,666  10,575,056  10,134,663  9,911,641  9,531,695
    Total commercial real estate $10,946,180 $10,608,811 $10,239,078 $9,950,947 $9,578,184
    Home equity          
    Nonaccrual $1,363 $1,361 $1,190 $1,487 $1,320
    90+ days and still accruing    110      
    60-89 days past due  219  316  116    125
    30-59 days past due  1,668  601  1,118  2,152  848
    Current  340,008  334,586  334,592  329,059  326,529
    Total home equity $343,258 $336,974 $337,016 $332,698 $328,822
    Residential real estate          
    Early buy-out loans guaranteed by U.S. government agencies (1) $168,973 $187,848 $196,152 $164,788 $148,664
    Nonaccrual  16,103  13,652  11,333  10,171  9,787
    90+ days and still accruing      104    
    60-89 days past due  1,145  7,243  74  4,364  2,149
    30-59 days past due  904  872  19,183  9,982  15
    Current  2,520,478  2,433,625  2,278,699  2,183,078  2,074,844
    Total residential real estate $2,707,603 $2,643,240 $2,505,545 $2,372,383 $2,235,459
    Premium finance receivables - property & casualty          
    Nonaccrual $26,756 $19,583 $18,543 $13,470 $13,026
    90+ days and still accruing  16,253  12,785  9,215  15,841  16,624
    60-89 days past due  16,552  22,670  14,287  14,926  15,301
    30-59 days past due  31,919  32,751  32,545  40,557  21,128
    Current  6,631,267  6,674,909  5,664,290  5,764,665  5,647,261
    Total Premium finance receivables - property & casualty $6,722,747 $6,762,698 $5,738,880 $5,849,459 $5,713,340
    Premium finance receivables - life insurance          
    Nonaccrual $ $6 $ $ $
    90+ days and still accruing  10,679  1,667  1,066  17,245  1,831
    60-89 days past due  41,894  3,729  21,552  5,260  13,628
    30-59 days past due  14,972  90,117  52,975  68,725  44,954
    Current  7,864,263  7,943,754  8,050,209  7,999,768  7,944,443
    Total Premium finance receivables - life insurance $7,931,808 $8,039,273 $8,125,802 $8,090,998 $8,004,856
    Consumer and other          
    Nonaccrual $16 $4 $6 $6 $7
    90+ days and still accruing  27  28  87  49  31
    60-89 days past due  196  51  10  18  26
    30-59 days past due  519  146  379  224  343
    Current  68,205  31,712  41,683  50,539  47,295
    Total consumer and other $68,963 $31,941 $42,165 $50,836 $47,702
    Total loans, net of unearned income          
    Early buy-out loans guaranteed by U.S. government agencies (1) $168,973 $187,848 $196,152 $164,788 $148,664
    Nonaccrual  104,850  93,549  90,218  67,100  78,910
    90+ days and still accruing  28,251  15,163  10,472  33,597  18,723
    60-89 days past due  90,290  57,871  67,333  47,940  61,911
    30-59 days past due  146,647  187,675  274,473  209,011  132,176
    Current  40,907,021  40,481,302  38,926,823  38,674,049  37,727,229
    Total loans, net of unearned income $41,446,032 $41,023,408 $39,565,471 $39,196,485 $38,167,613
                    

    (1)   Early buy-out loans are insured or guaranteed by the Federal Housing Administration or the U.S. Department of Veterans Affairs, subject to indemnifications and insurance limits for certain loans.

    TABLE 14: NON-PERFORMING ASSETS(1)

     Sep 30, Jun 30, Mar 31, Dec 31, Sep 30,
    (Dollars in thousands) 2023   2023   2023   2022   2022 
    Loans past due greater than 90 days and still accruing:         
    Commercial$200  $573  $  $462  $237 
    Commercial real estate 1,092             
    Home equity    110          
    Residential real estate       104       
    Premium finance receivables - property & casualty 16,253   12,785   9,215   15,841   16,624 
    Premium finance receivables - life insurance 10,679   1,667   1,066   17,245   1,831 
    Consumer and other 27   28   87   49   31 
    Total loans past due greater than 90 days and still accruing 28,251   15,163   10,472   33,597   18,723 
    Non-accrual loans:         
    Commercial 43,569   40,460   47,950   35,579   44,293 
    Commercial real estate 17,043   18,483   11,196   6,387   10,477 
    Home equity 1,363   1,361   1,190   1,487   1,320 
    Residential real estate 16,103   13,652   11,333   10,171   9,787 
    Premium finance receivables - property & casualty 26,756   19,583   18,543   13,470   13,026 
    Premium finance receivables - life insurance    6          
    Consumer and other 16   4   6   6   7 
    Total non-accrual loans 104,850   93,549   90,218   67,100   78,910 
    Total non-performing loans:         
    Commercial 43,769   41,033   47,950   36,041   44,530 
    Commercial real estate 18,135   18,483   11,196   6,387   10,477 
    Home equity 1,363   1,471   1,190   1,487   1,320 
    Residential real estate 16,103   13,652   11,437   10,171   9,787 
    Premium finance receivables - property & casualty 43,009   32,368   27,758   29,311   29,650 
    Premium finance receivables - life insurance 10,679   1,673   1,066   17,245   1,831 
    Consumer and other 43   32   93   55   38 
    Total non-performing loans$133,101  $108,712  $100,690  $100,697  $97,633 
    Other real estate owned 12,928   10,275   8,050   8,589   5,376 
    Other real estate owned - from acquisitions 1,132   1,311   1,311   1,311   1,311 
    Other repossessed assets              
    Total non-performing assets$147,161  $120,298  $110,051  $110,597  $104,320 
    Total non-performing loans by category as a percent of its own respective category’s period-end balance:         
    Commercial 0.34%  0.33%  0.38%  0.29%  0.36%
    Commercial real estate 0.17   0.17   0.11   0.06   0.11 
    Home equity 0.40   0.44   0.35   0.45   0.40 
    Residential real estate 0.59   0.52   0.46   0.43   0.44 
    Premium finance receivables - property & casualty 0.64   0.48   0.48   0.50   0.52 
    Premium finance receivables - life insurance 0.13   0.02   0.01   0.21   0.02 
    Consumer and other 0.06   0.10   0.22   0.11   0.08 
    Total loans, net of unearned income 0.32%  0.26%  0.25%  0.26%  0.26%
    Total non-performing assets as a percentage of total assets 0.26%  0.22%  0.21%  0.21%  0.20%
    Allowance for loan losses and unfunded lending-related commitments losses as a percentage of non-accrual loans 380.69%  414.09%  416.54%  532.71%  399.22%
              
              

    (1)   Excludes early buy-out loans guaranteed by U.S. government agencies. Early buy-out loans are insured or guaranteed by the Federal Housing Administration or the U.S. Department of Veterans Affairs, subject to indemnifications and insurance limits for certain loans.

    Non-performing Loans Rollforward, excluding early buy-out loans guaranteed by U.S. government agencies

     Three Months EndedNine Months Ended
     Sep 30, Jun 30, Mar 31, Dec 31, Sep 30,Sep 30, Sep 30,
    (In thousands) 2023   2023   2023   2022   2022  2023   2022 
                 
    Balance at beginning of period$108,712  $100,690  $100,697  $97,633  $72,351 $100,697  $74,438 
    Additions from becoming non-performing in the respective period 18,666   21,246   24,455   10,027   35,234  64,367   62,216 
    Return to performing status (1,702)  (360)  (480)  (1,167)  (154) (2,542)  (1,883)
    Payments received (6,488)  (12,314)  (5,261)  (16,351)  (20,417) (24,063)  (44,585)
    Transfer to OREO and other repossessed assets (2,671)  (2,958)     (3,365)  (185) (5,629)  (6,173)
    Charge-offs, net (3,011)  (2,696)  (1,159)  (1,363)  (341) (6,866)  (4,664)
    Net change for niche loans (1) 19,595   5,104   (17,562)  15,283   11,145  7,137   18,284 
    Balance at end of period$133,101  $108,712  $100,690  $100,697  $97,633 $133,101  $97,633 
                               

    (1)   Includes activity for premium finance receivables and indirect consumer loans.

    Other Real Estate Owned

     Three Months Ended
     Sep 30, Jun 30, Mar 31, Dec 31, Sep 30,
    (In thousands) 2023   2023   2023   2022   2022 
    Balance at beginning of period$11,586  $9,361  $9,900  $6,687  $6,839 
    Disposals/resolved (467)  (733)  (435)  (152)  (133)
    Transfers in at fair value, less costs to sell 2,941   2,958      3,365   134 
    Fair value adjustments       (104)     (153)
    Balance at end of period$14,060  $11,586  $9,361  $9,900  $6,687 
              
     Period End
     Sep 30, Jun 30, Mar 31, Dec 31, Sep 30,
    Balance by Property Type: 2023   2023   2023   2022   2022 
    Residential real estate$441  $318  $1,051  $1,585  $1,585 
    Commercial real estate 13,619   11,268   8,310   8,315   5,102 
    Total$14,060  $11,586  $9,361  $9,900  $6,687 
                        

    TABLE 15: NON-INTEREST INCOME

     Three Months Ended Q3 2023 compared to
    Q2 2023
     Q3 2023 compared to
    Q3 2022
     Sep 30, Jun 30, Mar 31, Dec 31, Sep 30,  
    (Dollars in thousands) 2023  2023  2023   2022   2022  $ Change % Change $ Change % Change
    Brokerage$4,359  $4,404 $4,533  $4,177  $4,587  $(45) (1)% $(228) (5)%
    Trust and asset management 29,170   29,454  25,412   26,550   28,537   (284) (1)  633  2 
    Total wealth management 33,529   33,858  29,945   30,727   33,124   (329) (1)  405  1 
    Mortgage banking 27,395   29,981  18,264   17,407   27,221   (2,586) (9)  174  1 
    Service charges on deposit accounts 14,217   13,608  12,903   13,054   14,349   609  4   (132) (1)
    (Losses) gains on investment securities, net (2,357)  0  1,398   (6,745)  (3,103)  (2,357) NM  746  (24)
    Fees from covered call options 4,215   2,578  10,391   7,956   1,366   1,637  63   2,849  NM
    Trading gains (losses), net 728   106  813   (306)  (7)  622  NM  735  NM
    Operating lease income, net 13,863   12,227  13,046   12,384   12,644   1,636  13   1,219  10 
    Other:                 
    Interest rate swap fees 2,913   2,711  2,606   2,319   1,997   202  7   916  46 
    BOLI 729   1,322  1,351   1,394   248   (593) (45)  481  NM
    Administrative services 1,336   1,319  1,615   1,736   1,533   17  1   (197) (13)
    Foreign currency remeasurement (losses) gains (446)  543  (188)  277   (93)  (989) NM  (353) NM
    Early pay-offs of capital leases 461   201  365   131   138   260  NM  323  NM
    Miscellaneous 15,895   14,576  15,260   13,505   12,065   1,319  9   3,830  32 
    Total Other 20,888   20,672  21,009   19,362   15,888   216  1   5,000  31 
    Total Non-Interest Income$112,478  $113,030 $107,769  $93,839  $101,482  $(552) 0% $10,996  11%
                                     


     Nine Months Ended    
     Sep 30, Sep 30, $ %
    (Dollars in thousands) 2023   2022  Change Change
    Brokerage$13,296  $13,491  $(195) (1)%
    Trust and asset management 84,036   82,396   1,640  2 
    Total wealth management 97,332   95,887   1,445  2 
    Mortgage banking 75,640   137,766   (62,126) (45)
    Service charges on deposit accounts 40,728   45,520   (4,792) (11)
    Gains (losses) on investment securities, net (959)  (13,682)  12,723  (93)
    Fees from covered call options 17,184   6,177   11,007  NM
    Trading gains, net 1,647   4,058   (2,411) (59)
    Operating lease income, net 39,136   43,126   (3,990) (9)
    Other:       
    Interest rate swap fees 8,230   9,866   (1,636) (17)
    BOLI 3,402   (588)  3,990  NM
    Administrative services 4,270   4,977   (707) (14)
    Foreign currency remeasurement gains (91)  15   (106) NM
    Early pay-offs of leases 1,027   563   464  82 
    Miscellaneous 45,731   33,529   12,202  36 
    Total Other 62,569   48,362   14,207  29 
    Total Non-Interest Income$333,277  $367,214  $(33,937) (9)%
                  

    NM - Not meaningful.

    BOLI - Bank-owned life insurance.

    TABLE 16: NON-INTEREST EXPENSE

     Three Months Ended Q3 2023 compared to
    Q2 2023
     Q3 2023 compared to
    Q3 2022
     Sep 30, Jun 30, Mar 31, Dec 31, Sep 30,  
    (Dollars in thousands)2023 2023  2023  2022 2022 $ Change % Change $ Change % Change
    Salaries and employee benefits:                 
    Salaries$111,303 $107,671 $108,354  $100,232 $97,419 $3,632  3% $13,884  14%
    Commissions and incentive compensation 48,817  44,511  39,799   49,546  50,403  4,306  10   (1,586) (3)
    Benefits 32,218  32,741  28,628   30,553  28,273  (523) (2)  3,945  14 
    Total salaries and employee benefits 192,338  184,923  176,781   180,331  176,095  7,415  4   16,243  9 
    Software and equipment 25,951  26,205  24,697   24,699  24,126  (254) (1)  1,825  8 
    Operating lease equipment 12,020  9,816  9,833   10,078  9,448  2,204  22   2,572  27 
    Occupancy, net 21,304  19,176  18,486   17,763  17,727  2,128  11   3,577  20 
    Data processing 10,773  9,726  9,409   7,927  7,767  1,047  11   3,006  39 
    Advertising and marketing 18,169  17,794  11,946   14,279  16,600  375  2   1,569  9 
    Professional fees 8,887  8,940  8,163   9,267  7,544  (53) (1)  1,343  18 
    Amortization of other acquisition-related intangible assets 1,408  1,499  1,235   1,436  1,492  (91) (6)  (84) (6)
    FDIC insurance 9,748  9,008  8,669   6,775  7,186  740  8   2,562  36 
    OREO expense, net 120  118  (207)  369  229  2  2   (109) (48)
    Other:                 
    Lending expenses, net of deferred origination costs 4,777  7,890  3,099   4,952  4,533  (3,113) (39)  244  5 
    Travel and entertainment 5,449  5,401  4,590   5,681  4,252  48  1   1,197  28 
    Miscellaneous 19,111  20,127  22,468   24,279  19,470  (1,016) (5)  (359) (2)
    Total other 29,337  33,418  30,157   34,912  28,255  (4,081) (12)  1,082  4 
    Total Non-Interest Expense$330,055 $320,623 $299,169  $307,836 $296,469 $9,432  3% $33,586  11%
                                  


      Nine Months Ended   
      Sep 30, Sep 30,$ %
    (Dollars in thousands)  2023  2022 Change Change
    Salaries and employee benefits:       
    Salaries $327,328 $281,949 $45,379  16%
    Commissions and incentive compensation  133,127  148,327  (15,200) (10)
    Benefits  93,587  85,500  8,087  9 
    Total salaries and employee benefits  554,042  515,776  38,266  7 
    Software and equipment  76,853  71,186  5,667  8 
    Operating lease equipment  31,669  27,930  3,739  13 
    Occupancy, net  58,966  53,202  5,764  11 
    Data processing  29,908  23,282  6,626  28 
    Advertising and marketing  47,909  45,139  2,770  6 
    Professional fees  25,990  23,821  2,169  9 
    Amortization of other acquisition-related intangible assets  4,142  4,680  (538) (11)
    FDIC insurance  27,425  21,864  5,561  25 
    OREO expense, net  31  (509) 540  NM
    Other:       
    Lending expenses, net of deferred origination costs  15,766  15,624  142  1 
    Travel and entertainment  15,440  10,825  4,615  43 
    Miscellaneous  61,706  56,615  5,091  9 
    Total other  92,912  83,064  9,848  12 
    Total Non-Interest Expense $949,847 $869,435 $80,412  9%
                  

    NM - Not meaningful.

    TABLE 17: SUPPLEMENTAL NON-GAAP FINANCIAL MEASURES/RATIOS

    The accounting and reporting policies of Wintrust conform to generally accepted accounting principles (“GAAP”) in the United States and prevailing practices in the banking industry. However, certain non-GAAP performance measures and ratios are used by management to evaluate and measure the Company’s performance. These include taxable-equivalent net interest income (including its individual components), taxable-equivalent net interest margin (including its individual components), the taxable-equivalent efficiency ratio, tangible common equity ratio, tangible book value per common share, return on average tangible common equity, and pre-tax income, excluding provision for credit losses. Management believes that these measures and ratios provide users of the Company’s financial information a more meaningful view of the performance of the Company’s interest-earning assets and interest-bearing liabilities and of the Company’s operating efficiency. Other financial holding companies may define or calculate these measures and ratios differently.

    Management reviews yields on certain asset categories and the net interest margin of the Company and its banking subsidiaries on a fully taxable-equivalent basis. In this non-GAAP presentation, net interest income is adjusted to reflect tax-exempt interest income on an equivalent before-tax basis using tax rates effective as of the end of the period. This measure ensures comparability of net interest income arising from both taxable and tax-exempt sources. Net interest income on a fully taxable-equivalent basis is also used in the calculation of the Company’s efficiency ratio. The efficiency ratio, which is calculated by dividing non-interest expense by total taxable-equivalent net revenue (less securities gains or losses), measures how much it costs to produce one dollar of revenue. Securities gains or losses are excluded from this calculation to better match revenue from daily operations to operational expenses. Management considers the tangible common equity ratio and tangible book value per common share as useful measurements of the Company’s equity. The Company references the return on average tangible common equity as a measurement of profitability. Management considers pre-tax income, excluding provision for credit losses, as a useful measurement of the Company’s core net income.

     Three Months EndedNine Months Ended
     Sep 30, Jun 30, Mar 31, Dec 31, Sep 30,Sep 30, Sep 30,
    (Dollars and shares in thousands) 2023   2023   2023   2022   2022  2023   2022 
    Reconciliation of Non-GAAP Net Interest Margin and Efficiency Ratio:   
    (A) Interest Income (GAAP)$762,400  $697,176  $639,690  $580,745  $466,478 $2,099,266  $1,166,698 
    Taxable-equivalent adjustment:            
    - Loans 1,923   1,882   1,872   1,594   1,030  5,677   2,025 
    - Liquidity Management Assets 572   551   551   538   502  1,674   1,439 
    - Other Earning Assets 1   1   4   1   1  6   4 
    (B) Interest Income (non-GAAP)$764,896  $699,610  $642,117  $582,878  $468,011 $2,106,623  $1,170,166 
    (C) Interest Expense (GAAP) 300,042   249,639   181,695   123,929   65,030  731,376   128,152 
    (D) Net Interest Income (GAAP) (A minus C)$462,358  $447,537  $457,995  $456,816  $401,448 $1,367,890  $1,038,546 
    (E) Net Interest Income (non-GAAP) (B minus C)$464,854  $449,971  $460,422  $458,949  $402,981 $1,375,247  $1,042,014 
    Net interest margin (GAAP) 3.60%  3.64%  3.81%  3.71%  3.34% 3.68%  2.96%
    Net interest margin, fully taxable-equivalent (non-GAAP) 3.62   3.66   3.83   3.73   3.35  3.70   2.97 
    (F) Non-interest income$112,478  $113,030  $107,769  $93,839  $101,482 $333,277  $367,214 
    (G) (Losses) gains on investment securities, net (2,357)  0   1,398   (6,745)  (3,103) (959)  (13,682)
    (H) Non-interest expense 330,055   320,623   299,169   307,836   296,469  949,847   869,435 
    Efficiency ratio (H/(D+F-G)) 57.18%  57.20%  53.01%  55.23%  58.59% 55.80%  61.25%
    Efficiency ratio (non-GAAP) (H/(E+F-G)) 56.94   56.95   52.78   55.02   58.41  55.56   61.10 
     Three Months EndedNine Months Ended
     Sep 30, Jun 30, Mar 31, Dec 31, Sep 30,Sep 30, Sep 30,
    (Dollars and shares in thousands) 2023   2023   2023   2022   2022  2023   2022 
    Reconciliation of Non-GAAP Tangible Common Equity Ratio:   
    Total shareholders’ equity (GAAP)$5,015,613  $5,041,912  $5,015,506  $4,796,838  $4,637,980    
    Less: Non-convertible preferred stock (GAAP) (412,500)  (412,500)  (412,500)  (412,500)  (412,500)   
    Less: Intangible assets (GAAP) (680,353)  (682,327)  (674,538)  (675,710)  (676,699)   
    (I) Total tangible common shareholders’ equity (non-GAAP)$3,922,760  $3,947,085  $3,928,468  $3,708,628  $3,548,781    
    (J) Total assets (GAAP)$55,555,246  $54,286,176  $52,873,511  $52,949,649  $52,382,939    
    Less: Intangible assets (GAAP) (680,353)  (682,327)  (674,538)  (675,710)  (676,699)   
    (K) Total tangible assets (non-GAAP)$54,874,893  $53,603,849  $52,198,973  $52,273,939  $51,706,240    
    Common equity to assets ratio (GAAP) (L/J) 8.3%  8.5%  8.7%  8.3%  8.1%   
    Tangible common equity ratio (non-GAAP) (I/K) 7.1   7.4   7.5   7.1   6.9    


    Reconciliation of Non-GAAP Tangible Book Value per Common Share:   
    Total shareholders’ equity$5,015,613  $5,041,912  $5,015,506  $4,796,838  $4,637,980    
    Less: Preferred stock (412,500)  (412,500)  (412,500)  (412,500)  (412,500)   
    (L) Total common equity$4,603,113  $4,629,412  $4,603,006  $4,384,338  $4,225,480    
    (M) Actual common shares outstanding 61,222   61,198   61,176   60,794   60,743    
    Book value per common share (L/M)$75.19  $75.65  $75.24  $72.12  $69.56    
    Tangible book value per common share (non-GAAP) (I/M) 64.07   64.50   64.22   61.00   58.42    
                 
    Reconciliation of Non-GAAP Return on Average Tangible Common Equity:   
    (N) Net income applicable to common shares$157,207  $147,759  $173,207  $137,826  $135,970 $478,173  $343,892 
    Add: Intangible asset amortization 1,408   1,499   1,235   1,436   1,492  4,142   4,680 
    Less: Tax effect of intangible asset amortization (380)  (402)  (321)  (370)  (425) (1,102)  (1,301)
    After-tax intangible asset amortization$1,028  $1,097  $914  $1,066  $1,067 $3,040  $3,379 
    (O) Tangible net income applicable to common shares (non-GAAP)$158,235  $148,856  $174,121  $138,892  $137,037 $481,213  $347,271 
    Total average shareholders’ equity$5,083,883  $5,044,718  $4,895,271  $4,710,856  $4,795,387 $5,008,648  $4,608,399 
    Less: Average preferred stock (412,500)  (412,500)  (412,500)  (412,500)  (412,500) (412,500)  (412,500)
    (P) Total average common shareholders’ equity$4,671,383  $4,632,218  $4,482,771  $4,298,356  $4,382,887 $4,596,148  $4,195,899 
    Less: Average intangible assets (681,520)  (682,561)  (675,247)  (676,371)  (678,953) (679,799)  (680,869)
    (Q) Total average tangible common shareholders’ equity (non-GAAP)$3,989,863  $3,949,657  $3,807,524  $3,621,985  $3,703,934 $3,916,349  $3,515,030 
    Return on average common equity, annualized (N/P) 13.35%  12.79%  15.67%  12.72%  12.31% 13.91%  10.96%
    Return on average tangible common equity, annualized (non-GAAP) (O/Q) 15.73   15.12   18.55   15.21   14.68  16.43   13.21 
                 
    Reconciliation of Non-GAAP Pre-Tax, Pre-Provision Income:     
    Income before taxes$224,858  $211,430  $243,550  $195,173  $200,041 $679,838  $505,382 
    Add: Provision for credit losses 19,923   28,514   23,045   47,646   6,420  71,482   30,943 
    Pre-tax income, excluding provision for credit losses (non-GAAP)$244,781  $239,944  $266,595  $242,819  $206,461 $751,320  $536,325 
                               

    WINTRUST SUBSIDIARIES AND LOCATIONS

    Wintrust is a financial holding company whose common stock is traded on the Nasdaq Global Select Market (Nasdaq: WTFC). Its 15 community bank subsidiaries are: Lake Forest Bank & Trust Company, N.A., Hinsdale Bank & Trust Company, N.A., Wintrust Bank, N.A., in Chicago, Libertyville Bank & Trust Company, N.A., Barrington Bank & Trust Company, N.A., Crystal Lake Bank & Trust Company, N.A., Northbrook Bank & Trust Company, N.A., Schaumburg Bank & Trust Company, N.A., Village Bank & Trust, N.A., in Arlington Heights, Beverly Bank & Trust Company, N.A. in Chicago, Wheaton Bank & Trust Company, N.A., State Bank of The Lakes, N.A., in Antioch, Old Plank Trail Community Bank, N.A., in New Lenox, St. Charles Bank & Trust Company, N.A. and Town Bank, N.A., in Hartland, Wisconsin.

    In addition to the locations noted above, the banks also operate facilities in Illinois in Addison, Algonquin, Aurora, Bloomingdale, Bolingbrook, Buffalo Grove, Burbank, Cary, Clarendon Hills, Countryside, Crete, Darien, Deerfield, Des Plaines, Downers Grove, Elgin, Elk Grove Village, Elmhurst, Evanston, Evergreen Park, Frankfort, Geneva, Glen Ellyn, Glencoe, Glenview, Grayslake, Gurnee, Hanover Park, Highland Park, Highwood, Hoffman Estates, Homer Glen, Itasca, Joliet, Lake Bluff, Lake Villa, Lansing, Lemont, Lindenhurst, Lombard, Lynwood, Markham, Maywood, McHenry, Mokena, Mount Prospect, Mundelein, Naperville, Norridge, Northfield, Oak Lawn, Oak Park, Orland Park, Palatine, Park Ridge, Prospect Heights, Riverside, Rockford, Rolling Meadows, Round Lake Beach, Shorewood, Skokie, Spring Grove, Steger, Stone Park, Vernon Hills, Wauconda, Waukegan, Western Springs, Willowbrook, Wilmette, Winnetka and Wood Dale, and in Wisconsin in Burlington, Clinton, Delafield, Delavan, Elm Grove, Genoa City, Kenosha, Lake Geneva, Madison, Menomonee Falls, Milwaukee, Pewaukee, Racine, Wales, Walworth, Whitefish Bay and Wind Lake, and in Florida in Bonita Springs and Naples, and in Dyer, Indiana. 

    Additionally, the Company operates various non-bank business units:

    • FIRST Insurance Funding and Wintrust Life Finance, each a division of Lake Forest Bank & Trust Company, N.A., serve commercial and life insurance loan customers, respectively, throughout the United States.
    • First Insurance Funding of Canada serves commercial insurance loan customers throughout Canada.
    • Tricom, Inc. of Milwaukee provides high-yielding, short-term accounts receivable financing and value-added out-sourced administrative services, such as data processing of payrolls, billing and cash management services, to temporary staffing service clients located throughout the United States.
    • Wintrust Mortgage, a division of Barrington Bank & Trust Company, N.A., engages primarily in the origination and purchase of residential mortgages for sale into the secondary market through origination offices located throughout the United States. Loans are also originated nationwide through relationships with wholesale and correspondent offices.
    • Wintrust Investments, LLC is a broker-dealer providing a full range of private client and brokerage services to clients and correspondent banks located primarily in the Midwest.
    • Great Lakes Advisors LLC provides money management services and advisory services to individual accounts.
    • The Chicago Trust Company, N.A., a trust subsidiary, allows Wintrust to service customers’ trust and investment needs at each banking location.
    • Wintrust Asset Finance offers direct leasing opportunities.
    • CDEC provides Qualified Intermediary services (as defined by U.S. Treasury regulations) for taxpayers seeking to structure tax-deferred like-kind exchanges under Internal Revenue Code Section 1031.

    FORWARD-LOOKING STATEMENTS

    This document contains forward-looking statements within the meaning of federal securities laws. Forward-looking information can be identified through the use of words such as “intend,” “plan,” “project,” “expect,” “anticipate,” “believe,” “estimate,” “contemplate,” “possible,” “will,” “may,” “should,” “would” and “could.” Forward-looking statements and information are not historical facts, are premised on many factors and assumptions, and represent only management’s expectations, estimates and projections regarding future events. Similarly, these statements are not guarantees of future performance and involve certain risks and uncertainties that are difficult to predict, and which may include, but are not limited to, those listed below and the Risk Factors discussed under Item 1A of the Company’s 2022 Annual Report on Form 10-K and in any of the Company’s subsequent SEC filings. The Company intends such forward-looking statements to be covered by the safe harbor provisions for forward-looking statements contained in the Private Securities Litigation Reform Act of 1995, and is including this statement for purposes of invoking these safe harbor provisions. Such forward-looking statements may be deemed to include, among other things, statements relating to the Company’s future financial performance, the performance of its loan portfolio, the expected amount of future credit reserves and charge-offs, delinquency trends, growth plans, regulatory developments, securities that the Company may offer from time to time, the Company’s business and growth strategies, including future acquisitions of banks, specialty finance or wealth management businesses, internal growth and plans to form additional de novo banks or branch offices, and management’s long-term performance goals, as well as statements relating to the anticipated effects on the Company’s financial condition and results of operations from expected developments or events. Actual results could differ materially from those addressed in the forward-looking statements as a result of numerous factors, including the following:

    • economic conditions and events that affect the economy, housing prices, the job market and other factors that may adversely affect the Company’s liquidity and the performance of its loan portfolios, including an actual or threatened U.S. government debt default or rating downgrade, particularly in the markets in which it operates;
    • negative effects suffered by us or our customers resulting from changes in U.S. trade policies;
    • the extent of defaults and losses on the Company’s loan portfolio, which may require further increases in its allowance for credit losses;
    • estimates of fair value of certain of the Company’s assets and liabilities, which could change in value significantly from period to period;
    • the financial success and economic viability of the borrowers of our commercial loans;
    • commercial real estate market conditions in the Chicago metropolitan area and southern Wisconsin;
    • the extent of commercial and consumer delinquencies and declines in real estate values, which may require further increases in the Company’s allowance for credit losses;
    • inaccurate assumptions in our analytical and forecasting models used to manage our loan portfolio;
    • changes in the level and volatility of interest rates, the capital markets and other market indices that may affect, among other things, the Company’s liquidity and the value of its assets and liabilities;
    • the interest rate environment, including a prolonged period of low interest rates or rising interest rates, either broadly or for some types of instruments, which may affect the Company’s net interest income and net interest margin, and which could materially adversely affect the Company’s profitability;
    • competitive pressures in the financial services business which may affect the pricing of the Company’s loan and deposit products as well as its services (including wealth management services), which may result in loss of market share and reduced income from deposits, loans, advisory fees and income from other products;
    • failure to identify and complete favorable acquisitions in the future or unexpected difficulties or developments related to the integration of the Company’s recent or future acquisitions;
    • unexpected difficulties and losses related to FDIC-assisted acquisitions;
    • harm to the Company’s reputation;
    • any negative perception of the Company’s financial strength;
    • ability of the Company to raise additional capital on acceptable terms when needed;
    • disruption in capital markets, which may lower fair values for the Company’s investment portfolio;
    • ability of the Company to use technology to provide products and services that will satisfy customer demands and create efficiencies in operations and to manage risks associated therewith;
    • failure or breaches of our security systems or infrastructure, or those of third parties;
    • security breaches, including denial of service attacks, hacking, social engineering attacks, malware intrusion and similar events or data corruption attempts and identity theft;
    • adverse effects on our information technology systems resulting from failures, human error or cyberattacks (including ransomware);
    • adverse effects of failures by our vendors to provide agreed upon services in the manner and at the cost agreed, particularly our information technology vendors;
    • increased costs as a result of protecting our customers from the impact of stolen debit card information;
    • accuracy and completeness of information the Company receives about customers and counterparties to make credit decisions;
    • ability of the Company to attract and retain senior management experienced in the banking and financial services industries, and ability of the Company to effectively manage the transition of the chief executive officer role;
    • environmental liability risk associated with lending activities;
    • the impact of any claims or legal actions to which the Company is subject, including any effect on our reputation;
    • losses incurred in connection with repurchases and indemnification payments related to mortgages and increases in reserves associated therewith;
    • the loss of customers as a result of technological changes allowing consumers to complete their financial transactions without the use of a bank;
    • the soundness of other financial institutions and the impact of recent failures of financial institutions, including broader financial institution liquidity risk and concerns;
    • the expenses and delayed returns inherent in opening new branches and de novo banks;
    • liabilities, potential customer loss or reputational harm related to closings of existing branches;
    • examinations and challenges by tax authorities, and any unanticipated impact of the Tax Act;
    • changes in accounting standards, rules and interpretations, and the impact on the Company’s financial statements;
    • the ability of the Company to receive dividends from its subsidiaries;
    • the ability of the Company to successfully transition from LIBOR to an alternative benchmark rate for current and future transactions;
    • a decrease in the Company’s capital ratios, including as a result of declines in the value of its loan portfolios, or otherwise;
    • legislative or regulatory changes, particularly changes in regulation of financial services companies and/or the products and services offered by financial services companies;
    • changes in laws, regulations, rules, standards and contractual obligations regarding data privacy and cybersecurity;
    • a lowering of our credit rating;
    • changes in U.S. monetary policy and changes to the Federal Reserve’s balance sheet, including changes in response to persistent inflation or otherwise;
    • regulatory restrictions upon our ability to market our products to consumers and limitations on our ability to profitably operate our mortgage business;
    • increased costs of compliance, heightened regulatory capital requirements and other risks associated with changes in regulation and the regulatory environment;
    • the impact of heightened capital requirements;
    • increases in the Company’s FDIC insurance premiums, or the collection of special assessments by the FDIC;
    • delinquencies or fraud with respect to the Company’s premium finance business;
    • credit downgrades among commercial and life insurance providers that could negatively affect the value of collateral securing the Company’s premium finance loans;
    • the Company’s ability to comply with covenants under its credit facility;
    • fluctuations in the stock market, which may have an adverse impact on the Company’s wealth management business and brokerage operation;
    • widespread outages of operational, communication, or other systems, whether internal or provided by third parties, natural or other disasters (including acts of terrorism, armed hostilities and pandemics), and the effects of climate change could have an adverse effect on the Company’s financial condition and results of operations, lead to material disruption of the Company’s operations or the ability or willingness of clients to access the Company’s products and services; and
    • the severity, magnitude and duration of the COVID-19 pandemic, including the continued emergence of variant strains, and the direct and indirect impact of such pandemic, as well as responses to the pandemic by the government, businesses and consumers, on the economy, our financial results, operations and personnel, commercial activity and demand across our business and our customers’ businesses.

    Therefore, there can be no assurances that future actual results will correspond to these forward-looking statements. The reader is cautioned not to place undue reliance on any forward-looking statement made by the Company. Any such statement speaks only as of the date the statement was made or as of such date that may be referenced within the statement. The Company undertakes no obligation to update any forward-looking statement to reflect the impact of circumstances or events after the date of the press release. Persons are advised, however, to consult further disclosures management makes on related subjects in its reports filed with the Securities and Exchange Commission and in its press releases.

    CONFERENCE CALL, WEBCAST AND REPLAY

    The Company will hold a conference call on Wednesday, October 18, 2023 at 10:00 a.m. (CDT) regarding third quarter and year-to-date 2023 earnings results. Individuals interested in participating in the call by addressing questions to management should register for the call to receive the dial-in numbers and unique PIN at the Conference Call Link included within the Company’s press release dated September 29, 2023 available at the Investor Relations, Investor News and Events, Press Releases link on its website at https://www.wintrust.com. A separate simultaneous audio-only webcast link is included within the press release referenced above. Registration for and a replay of the audio-only webcast with an accompanying slide presentation will be available at https://www.wintrust.com, Investor Relations, Investor News and Events, Presentations & Conference Calls. The text of the third quarter and year-to-date 2023 earnings press release will also be available on the home page of the Company’s website at https://www.wintrust.com and at the Investor Relations, Investor News and Events, Press Releases link on its website.

    FOR MORE INFORMATION CONTACT:
    Timothy S. Crane, President & Chief Executive Officer
    David A. Dykstra, Vice Chairman & Chief Operating Officer
    (847) 939-9000
    Web site address: www.wintrust.com


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