Wintrust Financial Corporation Reports Fourth Quarter and Full Year 2022 Results

Written by Customer Service on January 18, 2023. Posted in Earnings Releases And Operating Results.

ROSEMONT, Ill., Jan. 18, 2023 (GLOBE NEWSWIRE) — Wintrust Financial Corporation (“Wintrust”, “the Company”, “we” or “our”) (Nasdaq: WTFC) announced net income of $144.8 million or $2.23 per diluted common share for the fourth quarter of 2022, an increase in diluted earnings per common share of 1% compared to the third quarter of 2022. The Company had record annual net income of $509.7 million or $8.02 per diluted common share for the year ended December 31, 2022 as compared to net income of $466.2 million or $7.58 per diluted common share for the same period of 2021. Pre-tax, pre-provision income (non-GAAP) totaled a record $779.1 million for the year ended December 31, 2022, up 35% as compared to $578.5 million for the same period of 2021.

Edward J. Wehmer, Founder and Chief Executive Officer, commented, “Wintrust finished the year with great momentum as our fourth quarter results were highlighted by strong net income and record quarterly pre-tax, pre-provision income. Net interest income and net interest margin expanded meaningfully and our loan portfolio continued to grow while exhibiting low levels of net charge-offs. The fourth quarter caps an extraordinary year for Wintrust, and we believe that we are well-positioned to reach even higher levels of financial performance in 2023.”

Highlights of the fourth quarter of 2022:
Comparative information to the third quarter of 2022, unless otherwise noted

Net interest income increased by $55.4 million or 14% as compared to the third quarter of 2022 primarily due to improvement in net interest margin and loan growth.
- Net interest margin, on a GAAP basis, increased by 37 basis points to 3.71% for the fourth quarter of 2022 as the upward repricing of earning assets outpaced increases in deposit costs. Net interest margin, on a fully taxable equivalent basis (non-GAAP) increased by 38 basis points to 3.73%.
Total loans increased by $1.0 billion, or 11% on an annualized basis. In addition, total loans as of December 31, 2022 were $630 million higher than average total loans in the fourth quarter of 2022 which is expected to benefit future quarters.
Total assets increased by $567 million totaling $52.9 billion as of December 31, 2022 and total deposits increased by $105 million.
Recorded a provision for credit losses of $47.6 million in the fourth quarter of 2022 primarily related to a moderate deterioration in macroeconomic factors coupled with strong loan growth. This compares to a provision for credit losses of $6.4 million in the third quarter of 2022.
Net charge-offs totaled $5.1 million or five basis points of average total loans on an annualized basis in the fourth quarter of 2022 as compared to $3.2 million or three basis points of average total loans on an annualized basis in the third quarter of 2022.
Non-performing loans were essentially unchanged at 0.26% of total loans, as of December 31, 2022. See “Asset Quality” section for more information.
Book value per common share increased by $2.56 to $72.12 as of December 31, 2022. Tangible book value per common share (non-GAAP) increased to $61.00 as of December 31, 2022 as compared to $58.42 as of September 30, 2022.

Other items of note from the fourth quarter of 2022

Net losses on investment securities totaled $6.7 million in the fourth quarter of 2022 related to changes in the value of equity securities as compared to net losses of $3.1 million in the third quarter of 2022.
The effective tax rate decreased as the Company recorded an approximately $1.7 million benefit to income tax expense related to earnings at its Canadian subsidiary. See “Income Taxes” section for more information.
Recorded $838,000 in occupancy expense related to an unrealized loss associated with the anticipated sale of a branch facility.
Recorded $846,000 in operating lease equipment expense related to the impairment of an operating lease asset.
The Company recorded net negative fair value adjustments of $702,000 in the fourth quarter of 2022 related to fair value changes in certain mortgage assets, see “Non-Interest Income” section for more information.

Mr. Wehmer continued, “The Company experienced robust loan growth as loans increased by $1.0 billion, or 11% on an annualized basis, in the fourth quarter of 2022. The loan growth was spread across all of our material loan portfolios as we experienced growth in commercial, commercial real estate, commercial insurance premium finance receivables and life insurance premium finance receivables. We remain prudent in our review of credit prospects ensuring our loan growth stays within our conservative credit standards. Loan growth in the fourth quarter of 2022 outpaced deposit growth which resulted in our loans to deposits ratio ending the quarter at 91.4%. Strategically growing deposits is among our most important objectives in 2023 and we believe we are well positioned to accomplish that without compromising our net interest margin guidance.”

Mr. Wehmer commented, “Net interest income increased by $55.4 million in the fourth quarter of 2022 primarily due to improvement in net interest margin as well as an increase in earning assets. Net interest margin, on a fully taxable equivalent basis (non-GAAP), increased by 38 basis points as the upward repricing of earning assets outpaced deposit rate changes. We expect that trend to continue and believe, subject to no material change in the consensus projection of interest rates as of this release date, that our net interest margin should approach 4.00% during the first quarter of 2023. While Wintrust benefited significantly from being asset sensitive to interest rates in 2022, we acknowledge the uncertainty in projected interest rates and are repositioning our balance sheet to reduce our interest rate sensitivity. We expect to continue this strategy, including the use of derivative instruments, in order to mitigate potential negative impacts to our net interest margin in a declining interest rate environment.”

Commenting on credit quality, Mr. Wehmer stated, “The allowance for credit losses totaled $357.9 million as of December 31, 2022, an increase of $42.6 million as compared to $315.3 million as of September 30, 2022. The $42.6 million increase in reserves consisted of a $32.2 million increase related to a moderate deterioration in macroeconomic factors and a $10.4 million increase related to portfolio changes in the fourth quarter of 2022. Meanwhile, credit metrics related to current loan performance remained relatively stable. Non-performing loans totaled $100.7 million and comprised only 0.26% of total loans as of December 31, 2022, essentially unchanged from levels as of September 30, 2022. Net charge-offs totaled $5.1 million or five basis points of average total loans on an annualized basis in the fourth quarter of 2022 as compared to $3.2 million or three basis points of average total loans on an annualized basis in the third quarter of 2022. The allowance for credit losses on our core loan portfolio as of December 31, 2022 is approximately 1.42% of the outstanding balance. We believe that the Company’s reserves remain appropriate and we remain diligent in our review of credit.”

Mr. Wehmer concluded, “Our fourth quarter of 2022 results continued to demonstrate the multi-faceted nature of our business model which we believe uniquely positions us to be successful. We remain an asset driven organization, focused on prudently growing our loan portfolio. We are confident we can raise funding to support asset growth and drive further net interest income expansion. We are closely watching our expenses and believe our efficiency ratio will continue to improve. We are opportunistically evaluating the acquisition market for both banks and business lines of various sizes and are excited about our recently announced and pending wealth management acquisition. Of course, we remain diligent in our consideration of acquisition targets and intend to be prudent in our decision making, always seeking to minimize tangible book value dilution. We are very proud that Wintrust’s tangible book value per common share has increased every year since we became a public company in 1996 and you can be assured of our best efforts to maintain that trend in 2023 and beyond.”

The graphs below illustrate certain financial highlights of the fourth quarter of 2022 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/b70f58b8-5524-4ca3-8936-f89104accc4a

SUMMARY OF RESULTS:

BALANCE SHEET

Total loans increased by $1.0 billion as core loans increased by $794 million and niche loans increased by $250 million as compared to the third quarter of 2022. See Table 1 for more information. During the fourth quarter of 2022, the Company increased its investment portfolio by approximately $1.5 billion. However, certain securities were called by option holders on December 31, 2022 which resulted in the recognition of a trade date receivable of $922 million as of December 31, 2022. In January 2023, the Company reinvested the trade date receivable proceeds by purchasing a similar amount of investment securities.

Total liabilities increased $408 million in the fourth quarter of 2022 as compared to the third quarter of 2022 resulting primarily from a $136 million increase in notes payable and a $105 million increase in total deposits. The Company’s loans to deposits ratio ended the quarter at 91.4%. Management believes in substantially funding the Company’s balance sheet with core deposits and utilizes brokered or wholesale funding sources on a limited basis to manage its liquidity position as well as for interest rate risk management purposes.

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 fourth quarter of 2022, net interest income totaled $456.8 million, an increase of $55.4 million as compared to the third quarter of 2022. The $55.4 million increase in net interest income in the fourth quarter of 2022 compared to the third quarter of 2022 was primarily due to robust loan growth and continued expansion of net interest margin.

Net interest margin was 3.71% (3.73% on a fully taxable-equivalent basis, non-GAAP) during the fourth quarter of 2022 compared to 3.34% (3.35% on a fully taxable-equivalent basis, non-GAAP) during the third quarter of 2022. The net interest margin increase as compared to the third quarter of 2022 was due to an 84 basis point increase in yield on earning assets and a 22 basis point increase in the net free funds contribution. These improvements were partially offset by a 68 basis point increase in the rate paid on interest-bearing liabilities. The 84 basis point increase in the yield on earning assets in the fourth quarter of 2022 as compared to the third quarter of 2022 was primarily due to an 87 basis point expansion on loan yields and a higher liquidity management asset yield as the Company earned higher yields on interest-bearing deposits with banks and added investment securities at higher current market rates. The 68 basis point increase in the rate paid on interest-bearing liabilities in the fourth quarter of 2022 as compared to the third quarter of 2022 is primarily due to a 66 basis point increase in the rate paid on interest-bearing deposits primarily related to the increasing rate environment.

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

ASSET QUALITY

The allowance for credit losses totaled $357.9 million as of December 31, 2022, an increase of $42.6 million as compared to $315.3 million as of September 30, 2022. The $42.6 million increase in reserves consisted of a $32.2 million increase related to a moderate deterioration in macroeconomic factors and a $10.4 million increase related to portfolio changes in the fourth quarter of 2022. A provision for credit losses totaling $47.6 million was recorded for the fourth quarter of 2022 as compared to $6.4 million recorded in the third quarter of 2022. For more information regarding the 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 December 31, 2022, September 30, 2022, and June 30, 2022 is shown on Table 12 of this report.

Net charge-offs totaled $5.1 million in the fourth quarter of 2022, as compared to $3.2 million of net charge-offs in the third quarter of 2022. Net charge-offs as a percentage of average total loans were reported as five basis points in the fourth quarter of 2022 on an annualized basis compared to three basis points on an annualized basis in the third quarter of 2022. 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.

The ratio of non-performing assets to total assets was 0.21% as of December 31, 2022, compared to 0.20% at September 30, 2022. Non-performing assets totaled $110.6 million at December 31, 2022, compared to $104.3 million at September 30, 2022. Non-performing loans remained relatively flat totaling $100.7 million, or 0.26% of total loans, at December 31, 2022 compared to $97.6 million, or 0.26% of total loans, at September 30, 2022. For more information regarding non-performing assets, see Table 14 in this report.

NON-INTEREST INCOME

Wealth management revenue decreased $2.4 million in the fourth quarter of 2022 as compared to the third quarter of 2022 primarily related to lower fees associated with our tax-deferred like-kind exchange business. 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 $9.8 million in the fourth quarter of 2022 as compared to the third quarter of 2022 primarily due to lower production revenue as a result of declining mortgage origination volume in the recent rising rate environment as well as lower production margins. The Company recorded net negative fair value adjustments of $702,000 in the fourth quarter of 2022 related to fair value changes in certain mortgage assets. This included a $2.1 million decrease in the value of mortgage servicing rights related to changes in fair value model assumptions net of economic hedges and a positive $1.4 million valuation related adjustment on 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. The Company intends to monitor the relationship of these assets and will seek to minimize the earnings impact of fair value changes in future quarters.

Net losses on investment securities totaled $6.7 million in the fourth quarter of 2022 related to changes in the value of equity securities as compared to net losses of $3.1 million in the third quarter of 2022.

Fees from covered call options increased $6.6 million in the fourth quarter of 2022 as compared to the third quarter of 2022. 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 $4.2 million in the fourth quarter of 2022 as compared to the third quarter of 2022. The $4.2 million increase is primarily related to higher incentive compensation expense related to the Company’s strong 2022 financial performance, increased employee insurance costs and higher levels of deferred compensation expense, partially offset by lower commissions expense primarily related to lower mortgage production volume.

Advertising and marketing expenses in the fourth quarter of 2022 totaled $14.3 million, which is a $2.3 million decrease as compared to the third quarter of 2022 primarily due to a decrease in sports sponsorships. Marketing costs are incurred to promote the Company’s brand, commercial banking capabilities and the Company’s various products, to attract loans and deposits and to announce new branch openings as well as the expansion of the Company’s non-bank businesses. The level of marketing expenditures depends on the timing of sponsorship programs utilized which are determined based on the market area, targeted audience, competition and various other factors.

Miscellaneous expense increased by $4.8 million in the fourth quarter of 2022 as compared to the third quarter of 2022 which includes a $1.1 million increase in charitable donations. In addition, 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 $50.4 million in the fourth quarter of 2022 compared to $57.1 million in the third quarter of 2022. The effective tax rates were 25.80% in the fourth quarter of 2022 compared to 28.53% in the third quarter of 2022. Primarily as a result of fluctuations in currency rates, in the fourth quarter of 2022, the Company reversed approximately $1.7 million of the $2.0 million of tax expense related to GILTI (“Global Intangible Low-taxed Income”) recorded in the third quarter of 2022. The GILTI tax is a U.S. minimum tax on global profits.

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 fourth quarter of 2022, this unit expanded its loan portfolio. The segment’s net interest income increased in the fourth quarter of 2022 as compared to the third quarter of 2022 due to loan growth and an increased net interest margin.

Mortgage banking revenue was $17.4 million for the fourth quarter of 2022, a decrease of $9.8 million as compared to the third quarter of 2022, primarily due to lower production revenue as a result of declining mortgage origination volume in the current rising rate environment as well as lower production margins. Service charges on deposit accounts totaled $13.1 million in the fourth quarter of 2022, a decrease of $1.3 million as compared to the third quarter of 2022 primarily due to lower fees associated with commercial account activity. The Company’s gross commercial and commercial real estate loan pipelines remained robust as of December 31, 2022 indicating momentum for expected continued loan growth in the first 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 $4.0 billion during the fourth quarter of 2022 and average balances increased by $396.1 million as compared to the third quarter of 2022. The Company’s leasing portfolio balance increased in the fourth quarter of 2022, with its portfolio of assets, including capital leases, loans and equipment on operating leases, totaling $3.0 billion as of December 31, 2022 as compared to $2.7 billion as of September 30, 2022. Revenues from the Company’s out-sourced administrative services business were $1.7 million in the fourth quarter of 2022, an increase of $203,000 from the third quarter of 2022.

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 $30.7 million in the fourth quarter of 2022, a decrease of $2.4 million compared to the third quarter of 2022. The decline in wealth management revenue in the fourth quarter of 2022 was primarily related to lower fees associated with our tax-deferred like-kind exchange business. At December 31, 2022, the Company’s wealth management subsidiaries had approximately $34.4 billion of assets under administration, which included $7.4 billion of assets owned by the Company and its subsidiary banks, representing an increase from the $32.8 billion of assets under administration at September 30, 2022.

ITEMS IMPACTING COMPARATIVE FINANCIAL RESULTS

Common Stock Offering
In June 2022, the Company sold through a public offering a total of 3,450,000 shares of its common stock. Net proceeds to the Company totaled approximately $285.7 million, net of estimated issuance costs.

Insurance Agency Loan Portfolio
On November 15, 2021, the Company completed its acquisition of certain assets from The Allstate Corporation (“Allstate”). Through this business combination, the Company acquired approximately $581.6 million of loans, net of allowance for credit losses measured on the acquisition date. The loan portfolio was comprised of approximately 1,800 loans to Allstate agents nationally. In addition to acquiring the loans, the Company became the national preferred provider of loans to Allstate agents. In connection with the loan acquisition, a team of Allstate agency lending specialists joined the Company, to augment and expand Wintrust’s existing insurance agency finance business. As the transaction was determined to be a business combination, the Company recorded goodwill of approximately $9.3 million on the purchase.

WINTRUST FINANCIAL CORPORATION
Key Operating Measures

Wintrust’s key operating measures and growth rates for the fourth quarter of 2022, as compared to the third quarter of 2022 (sequential quarter) and fourth quarter of 2021 (linked quarter), are shown in the table below:

										% or⁽¹⁾ basis point (bp) change from 3rd Quarter 2022			% or basis point (bp) change from 4th Quarter 2021
	Three Months Ended
(Dollars in thousands, except per share data)	Dec 31, 2022			Sep 30, 2022			Dec 31, 2021
Net income	$	144,817		$	142,961		$	98,757		1		%	47	%
Pre-tax income, excluding provision for credit losses (non-GAAP)⁽²⁾		242,819			206,461			146,344		18			66
Net income per common share – diluted		2.23			2.21			1.58		1			41
Cash dividends declared per common share		0.34			0.34			0.31		—			10
Net revenue⁽³⁾		550,655			502,930			429,743		9			28
Net interest income		456,816			401,448			295,976		14			54
Net interest margin		3.71	%		3.34	%		2.54	%	37		bps	117	bps
Net interest margin – fully taxable-equivalent (non-GAAP)⁽²⁾		3.73			3.35			2.55		38			118
Net overhead ratio⁽⁴⁾		1.63			1.53			1.21		10			42
Return on average assets		1.10			1.12			0.80		(2	)		30
Return on average common equity		12.72			12.31			9.05		41			367
Return on average tangible common equity (non-GAAP)⁽²⁾		15.21			14.68			11.04		53			417
At end of period
Total assets	$	52,949,649		$	52,382,939		$	50,142,143		4		%	6	%
Total loans⁽⁵⁾		39,196,485			38,167,613			34,789,104		11			13
Total deposits		42,902,544			42,797,191			42,095,585		1			2
Total shareholders’ equity		4,796,838			4,637,980			4,498,688		14			7

(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 Ended															Years Ended
(Dollars in thousands, except per share data)	Dec 31, 2022			Sep 30, 2022			Jun 30, 2022			Mar 31, 2022			Dec 31, 2021			Dec 31, 2022			Dec 31, 2021
Selected Financial Condition Data (at end of period):
Total assets	$	52,949,649		$	52,382,939		$	50,969,332		$	50,250,661		$	50,142,143
Total loans⁽¹⁾		39,196,485			38,167,613			37,053,103			35,280,547			34,789,104
Total deposits		42,902,544			42,797,191			42,593,326			42,219,322			42,095,585
Total shareholders’ equity		4,796,838			4,637,980			4,727,623			4,492,256			4,498,688
Selected Statements of Income Data:
Net interest income	$	456,816		$	401,448		$	337,804		$	299,294		$	295,976		$	1,495,362		$	1,124,957
Net revenue⁽²⁾		550,655			502,930			440,746			462,084			429,743			1,956,415			1,711,077
Net income		144,817			142,961			94,513			127,391			98,757			509,682			466,151
Pre-tax income, excluding provision for credit losses (non-GAAP)⁽³⁾		242,819			206,461			152,078			177,786			146,344			779,144			578,533
Net income per common share – Basic		2.27			2.24			1.51			2.11			1.61			8.14			7.69
Net income per common share – Diluted		2.23			2.21			1.49			2.07			1.58			8.02			7.58
Cash dividends declared per common share		0.34			0.34			0.34			0.34			0.31			1.36			1.24
Selected Financial Ratios and Other Data:
Performance Ratios:
Net interest margin		3.71	%		3.34	%		2.92	%		2.60	%		2.54	%		3.15	%		2.57	%
Net interest margin – fully taxable-equivalent (non-GAAP)⁽³⁾		3.73			3.35			2.93			2.61			2.55			3.17			2.58
Non-interest income to average assets		0.71			0.79			0.84			1.33			1.08			0.91			1.25
Non-interest expense to average assets		2.34			2.32			2.35			2.33			2.29			2.33			2.42
Net overhead ratio⁽⁴⁾		1.63			1.53			1.51			1.00			1.21			1.42			1.17
Return on average assets		1.10			1.12			0.77			1.04			0.80			1.01			1.00
Return on average common equity		12.72			12.31			8.53			11.94			9.05			11.41			11.27
Return on average tangible common equity (non-GAAP)⁽³⁾		15.21			14.68			10.36			14.48			11.04			13.73			13.83
Average total assets	$	52,087,618		$	50,722,694		$	49,353,426		$	49,501,844		$	49,118,777		$	50,424,319		$	46,824,051
Average total shareholders’ equity		4,710,856			4,795,387			4,526,110			4,500,460			4,433,953			4,634,224			4,300,742
Average loans to average deposits ratio		90.5	%		88.8	%		86.8	%		83.8	%		81.7	%		87.5	%		84.7	%
Period-end loans to deposits ratio		91.4			89.2			87.0			83.6			82.6
Common Share Data at end of period:
Market price per common share	$	84.52		$	81.55		$	80.15		$	92.93		$	90.82
Book value per common share		72.12			69.56			71.06			71.26			71.62
Tangible book value per common share (non-GAAP)⁽³⁾		61.00			58.42			59.87			59.34			59.64
Common shares outstanding		60,794,008			60,743,335			60,721,889			57,253,214			57,054,091
Other Data at end of period:
Tier 1 leverage ratio⁽⁵⁾		8.8	%		8.8	%		8.8	%		8.1	%		8.0	%
Risk-based capital ratios:
Tier 1 capital ratio⁽⁵⁾		10.0			9.9			9.9			9.6			9.6
Common equity tier 1 capital ratio⁽⁵⁾		9.1			9.0			9.0			8.6			8.6
Total capital ratio⁽⁵⁾		11.9			11.8			11.9			11.6			11.6
Allowance for credit losses⁽⁶⁾	$	357,936		$	315,338		$	312,192		$	301,327		$	299,731
Allowance for loan and unfunded lending-related commitment losses to total loans		0.91	%		0.83	%		0.84	%		0.85	%		0.86	%
Number of:
Bank subsidiaries		15			15			15			15			15
Banking offices		174			174			173			174			173

(1)   Excludes mortgage loans held-for-sale.
(2)   Net revenue is net interest income and 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)
	Dec 31,			Sep 30,			Jun 30,			Mar 31,			Dec 31,
(In thousands)		2022			2022			2022			2022			2021
Assets
Cash and due from banks	$	490,908		$	489,590		$	498,891		$	462,516		$	411,150
Federal funds sold and securities purchased under resale agreements		58			57			475,056			700,056			700,055
Interest-bearing deposits with banks		1,988,719			3,968,605			3,266,541			4,013,597			5,372,603
Available-for-sale securities, at fair value		3,243,017			2,923,653			2,970,121			2,998,898			2,327,793
Held-to-maturity securities, at amortized cost		3,640,567			3,389,842			3,413,469			3,435,729			2,942,285
Trading account securities		1,127			179			1,010			852			1,061
Equity securities with readily determinable fair value		110,365			114,012			93,295			92,689			90,511
Federal Home Loan Bank and Federal Reserve Bank stock		224,759			178,156			136,138			136,163			135,378
Brokerage customer receivables		16,387			20,327			21,527			22,888			26,068
Mortgage loans held-for-sale		299,935			376,160			513,232			606,545			817,912
Loans, net of unearned income		39,196,485			38,167,613			37,053,103			35,280,547			34,789,104
Allowance for loan losses		(270,173	)		(246,110	)		(251,769	)		(250,539	)		(247,835	)
Net loans		38,926,312			37,921,503			36,801,334			35,030,008			34,541,269
Premises, software and equipment, net		764,798			763,029			762,381			761,213			766,405
Lease investments, net		253,928			244,822			223,813			240,656			242,082
Accrued interest receivable and other assets		1,391,342			1,316,305			1,112,697			1,066,750			1,084,115
Trade date securities receivable		921,717			—			—			—			—
Goodwill		653,524			653,079			654,709			655,402			655,149
Other acquisition-related intangible assets		22,186			23,620			25,118			26,699			28,307
Total assets	$	52,949,649		$	52,382,939		$	50,969,332		$	50,250,661		$	50,142,143
Liabilities and Shareholders’ Equity
Deposits:
Non-interest-bearing	$	12,668,160		$	13,529,277		$	13,855,844		$	13,748,918		$	14,179,980
Interest-bearing		30,234,384			29,267,914			28,737,482			28,470,404			27,915,605
Total deposits		42,902,544			42,797,191			42,593,326			42,219,322			42,095,585
Federal Home Loan Bank advances		2,316,071			2,316,071			1,166,071			1,241,071			1,241,071
Other borrowings		596,614			447,215			482,787			482,516			494,136
Subordinated notes		437,392			437,260			437,162			437,033			436,938
Junior subordinated debentures		253,566			253,566			253,566			253,566			253,566
Trade date securities payable		—			—			—			437			—
Accrued interest payable and other liabilities		1,646,624			1,493,656			1,308,797			1,124,460			1,122,159
Total liabilities		48,152,811			47,744,959			46,241,709			45,758,405			45,643,455
Shareholders’ Equity:
Preferred stock		412,500			412,500			412,500			412,500			412,500
Common stock		60,797			60,743			60,722			59,091			58,892
Surplus		1,902,474			1,891,621			1,880,913			1,698,093			1,685,572
Treasury stock		(304	)		—			—			(109,903	)		(109,903	)
Retained earnings		2,849,007			2,731,844			2,616,525			2,548,474			2,447,535
Accumulated other comprehensive (loss) income		(427,636	)		(458,728	)		(243,037	)		(115,999	)		4,092
Total shareholders’ equity		4,796,838			4,637,980			4,727,623			4,492,256			4,498,688
Total liabilities and shareholders’ equity	$	52,949,649		$	52,382,939		$	50,969,332		$	50,250,661		$	50,142,143

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

	Three Months Ended															Years Ended
(In thousands, except per share data)	Dec 31, 2022			Sep 30, 2022			Jun 30, 2022			Mar 31, 2022			Dec 31, 2021			Dec 31, 2022			Dec 31, 2021
Interest income
Interest and fees on loans	$	498,838		$	402,689		$	320,501		$	285,698		$	289,140		$	1,507,726		$	1,133,528
Mortgage loans held-for-sale		3,997			5,371			5,740			6,087			7,234			21,195			32,169
Interest-bearing deposits with banks		20,349			15,621			5,790			1,687			2,254			43,447			6,606
Federal funds sold and securities purchased under resale agreements		1,263			1,845			1,364			431			173			4,903			173
Investment securities		53,092			38,569			36,541			32,398			27,210			160,600			95,286
Trading account securities		6			7			4			5			4			22			10
Federal Home Loan Bank and Federal Reserve Bank stock		2,918			2,109			1,823			1,772			1,776			8,622			7,067
Brokerage customer receivables		282			267			205			174			188			928			645
Total interest income		580,745			466,478			371,968			328,252			327,979			1,747,443			1,275,484
Interest expense
Interest on deposits		95,447			45,916			18,985			14,854			16,572			175,202			88,119
Interest on Federal Home Loan Bank advances		13,823			6,812			4,878			4,816			4,923			30,329			19,581
Interest on other borrowings		5,313			4,008			2,734			2,239			2,250			14,294			9,928
Interest on subordinated notes		5,520			5,485			5,517			5,482			5,514			22,004			21,983
Interest on junior subordinated debentures		3,826			2,809			2,050			1,567			2,744			10,252			10,916
Total interest expense		123,929			65,030			34,164			28,958			32,003			252,081			150,527
Net interest income		456,816			401,448			337,804			299,294			295,976			1,495,362			1,124,957
Provision for credit losses		47,646			6,420			20,417			4,106			9,299			78,589			(59,263	)
Net interest income after provision for credit losses		409,170			395,028			317,387			295,188			286,677			1,416,773			1,184,220
Non-interest income
Wealth management		30,727			33,124			31,369			31,394			32,489			126,614			124,019
Mortgage banking		17,407			27,221			33,314			77,231			53,138			155,173			273,010
Service charges on deposit accounts		13,054			14,349			15,888			15,283			14,734			58,574			54,168
Losses on investment securities, net		(6,745	)		(3,103	)		(7,797	)		(2,782	)		(1,067	)		(20,427	)		(1,059	)
Fees from covered call options		7,956			1,366			1,069			3,742			1,128			14,133			3,673
Trading (losses) gains, net		(306	)		(7	)		176			3,889			206			3,752			245
Operating lease income, net		12,384			12,644			15,007			15,475			14,204			55,510			53,691
Other		19,362			15,888			13,916			18,558			18,935			67,724			78,373
Total non-interest income		93,839			101,482			102,942			162,790			133,767			461,053			586,120
Non-interest expense
Salaries and employee benefits		180,331			176,095			167,326			172,355			167,131			696,107			691,669
Software and equipment		24,699			24,126			24,250			22,810			23,708			95,885			87,515
Operating lease equipment		10,078			9,448			8,774			9,708			10,147			38,008			40,880
Occupancy, net		17,763			17,727			17,651			17,824			18,343			70,965			74,184
Data processing		7,927			7,767			8,010			7,505			7,207			31,209			27,279
Advertising and marketing		14,279			16,600			16,615			11,924			13,981			59,418			47,275
Professional fees		9,267			7,544			7,876			8,401			7,551			33,088			29,494
Amortization of other acquisition-related intangible assets		1,436			1,492			1,579			1,609			1,811			6,116			7,734
FDIC insurance		6,775			7,186			6,949			7,729			7,317			28,639			27,030
OREO expense, net		369			229			294			(1,032	)		(641	)		(140	)		(1,654	)
Other		34,912			28,255			29,344			25,465			26,844			117,976			101,138
Total non-interest expense		307,836			296,469			288,668			284,298			283,399			1,177,271			1,132,544
Income before taxes		195,173			200,041			131,661			173,680			137,045			700,555			637,796
Income tax expense		50,356			57,080			37,148			46,289			38,288			190,873			171,645
Net income	$	144,817		$	142,961		$	94,513		$	127,391		$	98,757		$	509,682		$	466,151
Preferred stock dividends		6,991			6,991			6,991			6,991			6,991			27,964			27,964
Net income applicable to common shares	$	137,826		$	135,970		$	87,522		$	120,400		$	91,766		$	481,718		$	438,187
Net income per common share – Basic	$	2.27		$	2.24		$	1.51		$	2.11		$	1.61		$	8.14		$	7.69
Net income per common share – Diluted	$	2.23		$	2.21		$	1.49		$	2.07		$	1.58		$	8.02		$	7.58
Cash dividends declared per common share	$	0.34		$	0.34		$	0.34		$	0.34		$	0.31		$	1.36		$	1.24
Weighted average common shares outstanding		60,769			60,738			58,063			57,196			57,022			59,205			56,994
Dilutive potential common shares		1,096			837			775			862			976			886			792
Average common shares and dilutive common shares		61,865			61,575			58,838			58,058			57,998			60,091			57,786

TABLE 1: LOAN PORTFOLIO MIX AND GROWTH RATES

											% Growth From⁽¹⁾
(Dollars in thousands)	Dec 31, 2022		Sep 30, 2022		Jun 30, 2022		Mar 31, 2022		Dec 31, 2021		Sep 30, 2022⁽²⁾		Dec 31, 2021
Balance:
Mortgage loans held-for-sale, excluding early buy-out exercised loans guaranteed by U.S. government agencies	$	156,297	$	216,062	$	294,688	$	296,548	$	473,102	NM		(67	)%
Mortgage loans held-for-sale, early buy-out exercised loans guaranteed by U.S. government agencies		143,638		160,098		218,544		309,997		344,810	(41	)	(58	)
Total mortgage loans held-for-sale	$	299,935	$	376,160	$	513,232	$	606,545	$	817,912	(80	)%	(63	)%

Core loans:
Commercial
Commercial and industrial	$	5,852,166	$	5,818,959	$	5,502,584	$	5,348,266	$	5,346,084	2	%	9	%
Asset-based lending		1,473,344		1,545,038		1,552,033		1,365,297		1,299,869	(18	)	13
Municipal		668,235		608,234		535,586		533,357		536,498	39		25
Leases		1,840,928		1,582,359		1,592,329		1,481,368		1,454,099	65		27
Commercial real estate
Residential construction		76,877		66,957		55,941		57,037		51,464	59		49
Commercial construction		1,102,098		1,176,407		1,145,602		1,055,972		1,034,988	(25	)	6
Land		307,955		282,147		304,775		283,397		269,752	36		14
Office		1,337,176		1,269,729		1,321,745		1,273,705		1,285,686	21		4
Industrial		1,836,276		1,777,658		1,746,280		1,668,516		1,585,808	13		16
Retail		1,304,444		1,331,316		1,331,059		1,395,021		1,429,567	(8	)	(9	)
Multi-family		2,560,709		2,305,433		2,171,583		2,175,875		2,043,754	44		25
Mixed use and other		1,425,412		1,368,537		1,330,220		1,325,551		1,289,267	16		11
Home equity		332,698		328,822		325,826		321,435		335,155	5		(1	)
Residential real estate
Residential real estate loans for investment		2,207,595		2,086,795		1,965,051		1,749,889		1,606,271	23		37
Residential mortgage loans, early buy-out eligible loans guaranteed by U.S. government agencies		80,701		57,161		34,764		13,520		22,707	NM		NM
Residential mortgage loans, early buy-out exercised loans guaranteed by U.S. government agencies		84,087		91,503		79,092		36,576		8,121	(32	)	NM
Total core loans	$	22,490,701	$	21,697,055	$	20,994,470	$	20,084,782	$	19,599,090	15	%	15	%

Niche loans:
Commercial
Franchise	$	1,169,623	$	1,118,478	$	1,136,929	$	1,181,761	$	1,227,234	18	%	(5	)%
Mortgage warehouse lines of credit		237,392		297,374		398,085		261,847		359,818	(80	)	(34	)
Community Advantage – homeowners association		380,875		365,967		341,095		324,383		308,286	16		24
Insurance agency lending		897,678		879,183		906,375		833,720		813,897	8		10
Premium Finance receivables
U.S. property & casualty insurance		5,103,820		4,983,795		4,781,042		4,271,828		4,178,474	10		22
Canada property & casualty insurance		745,639		729,545		760,405		665,580		677,013	9		10
Life insurance		8,090,998		8,004,856		7,608,433		7,354,163		7,042,810	4		15
Consumer and other		50,836		47,702		44,180		48,519		24,199	26		NM
Total niche loans	$	16,676,861	$	16,426,900	$	15,976,544	$	14,941,801	$	14,631,731	6	%	14	%

Commercial PPP loans:
Originated in 2020	$	7,898	$	8,724	$	18,547	$	40,016	$	74,412	(38	)%	(89	)%
Originated in 2021		21,025		34,934		63,542		213,948		483,871	NM		(96	)
Total commercial PPP loans	$	28,923	$	43,658	$	82,089	$	253,964	$	558,283	NM		(95	)%

Total loans, net of unearned income	$	39,196,485	$	38,167,613	$	37,053,103	$	35,280,547	$	34,789,104	11	%	13	%

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

TABLE 2: DEPOSIT PORTFOLIO MIX AND GROWTH RATES

																% Growth From
(Dollars in thousands)	Dec 31, 2022			Sep 30, 2022			Jun 30, 2022			Mar 31, 2022			Dec 31, 2021			Sep 30, 2022⁽¹⁾		Dec 31, 2021
Balance:
Non-interest-bearing	$	12,668,160		$	13,529,277		$	13,855,844		$	13,748,918		$	14,179,980		(25	)%	(11	)%
NOW and interest-bearing demand deposits		5,591,986			5,676,122			5,918,908			5,089,724			4,646,944		(6	)	20
Wealth management deposits⁽²⁾		2,463,833			2,988,195			3,182,407			2,542,995			2,612,759		(70	)	(6	)
Money market		12,886,795			12,538,489			12,273,350			13,012,460			12,840,432		11		—
Savings		4,556,635			3,988,790			3,686,596			4,089,230			3,846,681		56		18
Time certificates of deposit		4,735,135			4,076,318			3,676,221			3,735,995			3,968,789		64		19
Total deposits	$	42,902,544		$	42,797,191		$	42,593,326		$	42,219,322		$	42,095,585		1	%	2	%
Mix:
Non-interest-bearing		30	%		32	%		33	%		32	%		34	%
NOW and interest-bearing demand deposits		13			13			13			12			11
Wealth management deposits⁽²⁾		5			7			7			6			6
Money market		30			29			29			31			31
Savings		11			9			9			10			9
Time certificates of deposit		11			10			9			9			9
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 December 31, 2022

(Dollars in thousands)	Total Time Certificates of Deposit		Weighted-Average Rate of Maturing Time Certificates of Deposit⁽¹⁾
1-3 months	$	988,118	2.04	%
4-6 months		929,448	1.89
7-9 months		815,885	1.56
10-12 months		894,365	2.06
13-18 months		654,059	2.32
19-24 months		233,827	2.03
24+ months		219,433	2.20
Total	$	4,735,135	1.98	%

(1) Weighted-average rate excludes the impact of purchase accounting fair value adjustments.

TABLE 4: QUARTERLY AVERAGE BALANCES

	Average Balance for three months ended,
	Dec 31,			Sep 30,			Jun 30,			Mar 31,			Dec 31,
(In thousands)		2022			2022			2022			2022			2021
Interest-bearing deposits with banks, securities purchased under resale agreements and cash equivalents⁽¹⁾	$	2,449,889		$	3,039,907		$	3,265,607		$	4,563,726		$	6,148,165
Investment securities⁽²⁾		7,310,383			6,655,215			6,589,947			6,378,022			5,317,351
FHLB and FRB stock		185,290			142,304			136,930			135,912			135,414
Liquidity management assets⁽³⁾		9,945,562			9,837,426			9,992,484			11,077,660			11,600,930
Other earning assets⁽³⁾⁽⁴⁾		18,585			21,805			24,059			25,192			28,298
Mortgage loans held-for-sale		308,639			455,342			560,707			664,019			827,672
Loans, net of unearned income⁽³⁾⁽⁵⁾		38,566,871			37,431,126			35,860,329			34,830,520			33,677,777
Total earning assets⁽³⁾		48,839,657			47,745,699			46,437,579			46,597,391			46,134,677
Allowance for loan and investment security losses		(252,827	)		(260,270	)		(260,547	)		(253,080	)		(254,874	)
Cash and due from banks		475,691			458,263			476,741			481,634			468,331
Other assets		3,025,097			2,779,002			2,699,653			2,675,899			2,770,643
Total assets	$	52,087,618		$	50,722,694		$	49,353,426		$	49,501,844		$	49,118,777

NOW and interest-bearing demand deposits	$	5,598,291		$	5,789,368		$	5,230,702		$	4,788,272		$	4,439,242
Wealth management deposits		2,883,247			3,078,764			2,835,267			2,505,800			2,646,879
Money market accounts		12,319,842			12,037,412			11,892,948			12,773,805			12,665,167
Savings accounts		4,403,113			3,862,579			3,882,856			3,904,299			3,766,037
Time deposits		4,023,232			3,675,930			3,687,778			3,861,371			4,058,282
Interest-bearing deposits		29,227,725			28,444,053			27,529,551			27,833,547			27,575,607
Federal Home Loan Bank advances		2,088,201			1,403,573			1,197,390			1,241,071			1,241,073
Other borrowings		480,553			478,909			489,779			494,267			501,933
Subordinated notes		437,312			437,191			437,084			436,966			436,861
Junior subordinated debentures		253,566			253,566			253,566			253,566			253,566
Total interest-bearing liabilities		32,487,357			31,017,292			29,907,370			30,259,417			30,009,040
Non-interest-bearing deposits		13,404,036			13,731,219			13,805,128			13,734,064			13,640,270
Other liabilities		1,485,369			1,178,796			1,114,818			1,007,903			1,035,514
Equity		4,710,856			4,795,387			4,526,110			4,500,460			4,433,953
Total liabilities and shareholders’ equity	$	52,087,618		$	50,722,694		$	49,353,426		$	49,501,844		$	49,118,777

Net free funds/contribution⁽⁶⁾	$	16,352,300		$	16,728,407		$	16,530,209		$	16,337,974		$	16,125,637

(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,
	Dec 31,			Sep 30,			Jun 30,			Mar 31,			Dec 31,
(In thousands)		2022			2022			2022			2022			2021
Interest income:
Interest-bearing deposits with banks, securities purchased under resale agreements and cash equivalents	$	21,612		$	17,466		$	7,154		$	2,118		$	2,427
Investment securities		53,630			39,071			37,013			32,863			27,696
FHLB and FRB stock		2,918			2,109			1,823			1,772			1,776
Liquidity management assets⁽¹⁾		78,160			58,646			45,990			36,753			31,899
Other earning assets⁽¹⁾		289			275			210			181			194
Mortgage loans held-for-sale		3,997			5,371			5,740			6,087			7,234
Loans, net of unearned income⁽¹⁾		500,432			403,719			321,069			286,125			289,557
Total interest income	$	582,878		$	468,011		$	373,009		$	329,146		$	328,884

Interest expense:
NOW and interest-bearing demand deposits	$	14,982		$	8,041		$	2,553		$	1,990		$	1,913
Wealth management deposits		14,079			11,068			3,685			918			1,402
Money market accounts		45,468			18,916			8,559			7,648			7,658
Savings accounts		8,421			2,130			347			336			345
Time deposits		12,497			5,761			3,841			3,962			5,254
Interest-bearing deposits		95,447			45,916			18,985			14,854			16,572
Federal Home Loan Bank advances		13,823			6,812			4,878			4,816			4,923
Other borrowings		5,313			4,008			2,734			2,239			2,250
Subordinated notes		5,520			5,485			5,517			5,482			5,514
Junior subordinated debentures		3,826			2,809			2,050			1,567			2,744
Total interest expense	$	123,929		$	65,030		$	34,164		$	28,958		$	32,003

Less: Fully taxable-equivalent adjustment		(2,133	)		(1,533	)		(1,041	)		(894	)		(905	)
Net interest income (GAAP)⁽²⁾		456,816			401,448			337,804			299,294			295,976
Fully taxable-equivalent adjustment		2,133			1,533			1,041			894			905
Net interest income, fully taxable-equivalent (non-GAAP)⁽²⁾	$	458,949		$	402,981		$	338,845		$	300,188		$	296,881

(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,
	Dec 31, 2022		Sep 30, 2022		Jun 30, 2022		Mar 31, 2022		Dec 31, 2021
Yield earned on:
Interest-bearing deposits with banks, securities purchased under resale agreements and cash equivalents	3.50	%	2.28	%	0.88	%	0.19	%	0.16	%
Investment securities	2.91		2.33		2.25		2.09		2.07
FHLB and FRB stock	6.25		5.88		5.34		5.29		5.20
Liquidity management assets	3.12		2.37		1.85		1.35		1.09
Other earning assets	6.17		5.01		3.49		2.91		2.71
Mortgage loans held-for-sale	5.14		4.68		4.11		3.72		3.47
Loans, net of unearned income	5.15		4.28		3.59		3.33		3.41
Total earning assets	4.73	%	3.89	%	3.22	%	2.86	%	2.83	%

Rate paid on:
NOW and interest-bearing demand deposits	1.06	%	0.55	%	0.20	%	0.17	%	0.17	%
Wealth management deposits	1.94		1.43		0.52		0.15		0.21
Money market accounts	1.46		0.62		0.29		0.24		0.24
Savings accounts	0.76		0.22		0.04		0.03		0.04
Time deposits	1.23		0.62		0.42		0.42		0.51
Interest-bearing deposits	1.30		0.64		0.28		0.22		0.24
Federal Home Loan Bank advances	2.63		1.93		1.63		1.57		1.57
Other borrowings	4.39		3.32		2.24		1.84		1.78
Subordinated notes	5.05		5.02		5.05		5.02		5.05
Junior subordinated debentures	5.90		4.33		3.20		2.47		4.23
Total interest-bearing liabilities	1.51	%	0.83	%	0.46	%	0.39	%	0.42	%

Interest rate spread⁽¹⁾⁽²⁾	3.22	%	3.06	%	2.76	%	2.47	%	2.41	%
Less: Fully taxable-equivalent adjustment	(0.02	)	(0.01	)	(0.01	)	(0.01	)	(0.01	)
Net free funds/contribution⁽³⁾	0.51		0.29		0.17		0.14		0.14
Net interest margin (GAAP)⁽²⁾	3.71	%	3.34	%	2.92	%	2.60	%	2.54	%
Fully taxable-equivalent adjustment	0.02		0.01		0.01		0.01		0.01
Net interest margin, fully taxable-equivalent (non-GAAP)⁽²⁾	3.73	%	3.35	%	2.93	%	2.61	%	2.55	%

(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 fortwelve months ended,						Interest fortwelve months ended,						Yield/Rate fortwelve months ended,
(Dollars in thousands)	Dec 31, 2022			Dec 31, 2021			Dec 31, 2022			Dec 31, 2021			Dec 31, 2022		Dec 31, 2021
Interest-bearing deposits with banks, securities purchased under resale agreements and cash equivalents⁽¹⁾	$	3,323,196		$	4,840,048		$	48,350		$	6,779		1.45	%	0.14	%
Investment securities⁽²⁾		6,735,732			4,779,313			162,577			97,258		2.41		2.03
FHLB and FRB stock		150,223			135,873			8,622			7,067		5.74		5.20
Liquidity management assets⁽³⁾⁽⁴⁾	$	10,209,151		$	9,755,234		$	219,549		$	111,104		2.15	%	1.14	%
Other earning assets^(3)(4)(5)		22,391			25,096			955			657		4.27		2.62
Mortgage loans held-for-sale		496,088			959,457			21,195			32,169		4.27		3.35
Loans, net of unearned income^(3)(4)(6)		36,684,528			33,051,043			1,511,345			1,135,155		4.12		3.43
Total earning assets⁽⁴⁾	$	47,412,158		$	43,790,830		$	1,753,044		$	1,279,085		3.70	%	2.92	%
Allowance for loan and investment security losses		(256,690	)		(284,163	)
Cash and due from banks		473,025			432,836
Other assets		2,795,826			2,884,548
Total assets	$	50,424,319		$	46,824,051

NOW and interest-bearing demand deposits	$	5,355,077		$	4,029,662		$	27,566		$	7,739		0.51	%	0.19	%
Wealth management deposits		2,827,497			2,361,412			29,750			4,534		1.05		0.19
Money market accounts		12,254,159			11,801,788			80,591			32,031		0.66		0.27
Savings accounts		4,014,166			3,734,162			11,234			1,583		0.28		0.04
Time deposits		3,812,148			4,447,871			26,061			42,232		0.68		0.95
Interest-bearing deposits	$	28,263,047		$	26,374,895		$	175,202		$	88,119		0.62	%	0.33	%
Federal Home Loan Bank advances		1,484,663			1,236,478			30,329			19,581		2.04		1.58
Other borrowings		485,820			514,657			14,294			9,928		2.94		1.93
Subordinated notes		437,139			436,697			22,004			21,983		5.03		5.03
Junior subordinated debentures		253,566			253,566			10,252			10,916		4.10		4.25
Total interest-bearing liabilities	$	30,924,235		$	28,816,293		$	252,081		$	150,527		0.81	%	0.52	%
Non-interest-bearing deposits		13,667,879			12,638,518
Other liabilities		1,197,981			1,068,498
Equity		4,634,224			4,300,742
Total liabilities and shareholders’ equity	$	50,424,319		$	46,824,051
Interest rate spread⁽⁴⁾⁽⁷⁾													2.89	%	2.40	%
Less: Fully taxable-equivalent adjustment								(5,601	)		(3,601	)	(0.02	)	(0.01	)
Net free funds/contribution⁽⁸⁾	$	16,487,923		$	14,974,537								0.28		0.18
Net interest income/margin (GAAP)⁽⁴⁾							$	1,495,362		$	1,124,957		3.15	%	2.57	%
Fully taxable-equivalent adjustment								5,601			3,601		0.02		0.01
Net interest income/margin, fully taxable-equivalent (non-GAAP)⁽⁴⁾							$	1,500,963		$	1,128,558		3.17	%	2.58	%

(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
Dec 31, 2022	7.2	%	3.8	%	(5.0	)%	(12.1	)%
Sep 30, 2022	12.9		7.1		(8.7	)	(18.9	)
Jun 30, 2022	17.0		9.0		(12.6	)	(23.8	)
Mar 31, 2022	21.4		11.0		(11.3	)	(18.7	)
Dec 31, 2021	25.3		12.4		(8.5	)	(15.8	)

Ramp Scenario	+200 Basis Points		+100 Basis Points		-100 Basis Points		-200 Basis Points
Dec 31, 2022	5.6	%	3.0	%	(2.9	)%	(6.8	)%
Sep 30, 2022	6.5		3.6		(3.9	)	(8.6	)
Jun 30, 2022	10.2		5.3		(6.9	)	(14.3	)
Mar 31, 2022	11.2		5.8		(7.1	)	(12.4	)
Dec 31, 2021	13.9		6.9		(5.6	)	(10.8	)

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 maturity period

As of December 31, 2022

One year or
less

From one to
five years

From five to
fifteen years

After fifteen
years

Total

(In thousands)

Commercial

Fixed rate

555,594

2,534,527

1,592,024

12,925

4,695,070

Variable rate

7,852,693

1,352

—

7,854,094

Total commercial

8,408,287

2,535,879

1,592,073

12,925

12,549,164

Commercial real estate

Fixed rate

430,152

2,744,033

607,770

46,352

3,828,307

Variable rate

6,102,383

20,257

—

6,122,640

Total commercial real estate

6,532,535

2,764,290

607,770

46,352

9,950,947

Home equity

Fixed rate

11,960

3,185

—

144

15,289

Variable rate

317,409

—

317,409

Total home equity

329,369

3,185

—

144

332,698

Residential real estate

Fixed rate

20,048

3,960

30,245

1,032,018

1,086,271

Variable rate

63,242

238,405

984,465

—

1,286,112

Total residential real estate

83,290

242,365

1,014,710

1,032,018

2,372,383

Premium finance receivables – property & casualty

Fixed rate

5,695,585

153,874

—

5,849,459

Variable rate

—

Total premium finance receivables – property & casualty

5,695,585

153,874

—

5,849,459

Premium finance receivables – life insurance

Fixed rate

91,363

470,117

22,185

—

583,665

Variable rate

7,507,333

—

7,507,333

Total premium finance receivables – life insurance

7,598,696

470,117

22,185

—

8,090,998

Consumer and other

Fixed rate

12,335

5,032

482

17,860

Variable rate

32,976

—

32,976

Total consumer and other

45,311

5,032

482

50,836

Total per category

Fixed rate

6,817,037

5,914,728

2,252,235

1,091,921

16,075,921

Variable rate

21,876,036

260,014

984,514

—

23,120,564

Total loans, net of unearned income

28,693,073

6,174,742

3,236,749

1,091,921

39,196,485

Variable Rate Loan Pricing by Index:

Prime

3,850,970

One- month LIBOR

3,349,999

Three- month LIBOR

122,551

Twelve- month LIBOR

3,582,952

One- year CMT

3,812,549

Other U.S. Treasury tenors

84,837

SOFR tenors

7,670,959

Ameribor tenors

336,618

BSBY tenors

39,185

Other

269,944

Total variable rate

23,120,564

LIBOR – London Interbank Offered Rate.
CMT – Constant Maturity Treasury Rate.
SOFR – Secured Overnight Financing Rate.
Ameribor – American Interbank Offered Rate.
BSBY – Bloomberg Short Term Bank Yield Index.

Graph available at the following link:
http://ml.globenewswire.com/Resource/Download/af5c30bf-cfcb-48dd-a1d5-f5753b798a27

Source: Bloomberg

As noted in the table on the previous page, the majority of the Company’s portfolio is tied to LIBOR and SOFR 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 $3.3 billion tied to one-month LIBOR, $3.6 billion tied to twelve-month LIBOR and $6.6 billion tied to one-month SOFR. The above chart shows:

	Basis Point (bp) Change in
	Prime		1-month LIBOR		12-month LIBOR		1-month SOFR
Fourth Quarter 2022	125	bps	125	bps	70	bps	132	bps
Third Quarter 2022	150		135		116		135
Second Quarter 2022	125		134		152		139
First Quarter 2022	25		35		152		25
Fourth Quarter 2021	0		2		34		-1

TABLE 10: ALLOWANCE FOR CREDIT LOSSES

	Three Months Ended															Years Ended
	Dec 31,			Sep 30,			Jun 30,			Mar 31,			Dec 31,			Dec 31,			Dec 31,
(Dollars in thousands)		2022			2022			2022			2022			2021			2022			2021
Allowance for credit losses at beginning of period	$	315,338		$	312,192		$	301,327		$	299,731		$	296,138		$	299,731		$	379,969
Provision for credit losses		47,646			6,420			20,417			4,106			9,299			78,589			(59,263	)
Initial allowance for credit losses recognized on PCD assets acquired during the period⁽¹⁾		—			—			—			—			470			—			470
Other adjustments		31			(105	)		(56	)		22			5			(108	)		5
Charge-offs:
Commercial		3,019			780			8,928			1,414			4,431			14,141			20,801
Commercial real estate		538			24			40			777			495			1,379			3,293
Home equity		—			43			192			197			135			432			336
Residential real estate		—			5			—			466			1,067			471			1,082
Premium finance receivables – property & casualty		3,629			6,037			2,903			1,671			2,314			14,240			9,020
Premium finance receivables – life insurance		28			—			—			7			—			35			—
Consumer and other		—			635			253			193			157			1,081			487
Total charge-offs		7,214			7,524			12,316			4,725			8,599			31,779			35,019
Recoveries:
Commercial		691			2,523			996			538			389			4,748			2,559
Commercial real estate		61			55			553			32			217			701			1,304
Home equity		65			38			123			93			461			319			1,203
Residential real estate		6			60			6			5			85			77			330
Premium finance receivables – property & casualty		1,279			1,648			1,119			1,476			1,240			5,522			7,989
Premium finance receivables – life insurance		—			—			—			—			—			—			—
Consumer and other		33			31			23			49			26			136			184
Total recoveries		2,135			4,355			2,820			2,193			2,418			11,503			13,569
Net charge-offs		(5,079	)		(3,169	)		(9,496	)		(2,532	)		(6,181	)		(20,276	)		(21,450	)
Allowance for credit losses at period end	$	357,936		$	315,338		$	312,192		$	301,327		$	299,731		$	357,936		$	299,731

Annualized net charge-offs (recoveries) by category as a percentage of its own respective category’s average:
Commercial		0.08	%	(0.06) %				0.27	%		0.03	%		0.14	%		0.08	%		0.16	%
Commercial real estate		0.02			0.00			(0.02	)		0.03			0.01			0.01			0.02
Home equity		(0.08	)		0.01			0.09			0.13			(0.38	)		0.03			(0.23	)
Residential real estate		0.00			(0.01	)		0.00			0.11			0.25			0.02			0.05
Premium finance receivables – property & casualty		0.16			0.30			0.14			0.02			0.09			0.16			0.02
Premium finance receivables – life insurance		0.00			—			—			0.00			—			0.00			—
Consumer and other		(0.16	)		4.02			1.31			1.19			0.95			1.22			0.66
Total loans, net of unearned income		0.05	%		0.03	%		0.11	%		0.03	%		0.07	%		0.06	%		0.06	%

Loans at period end	$	39,196,485		$	38,167,613		$	37,053,103		$	35,280,547		$	34,789,104
Allowance for loan losses as a percentage of loans at period end		0.69	%		0.64	%		0.68	%		0.71	%		0.71	%
Allowance for loan and unfunded lending-related commitment losses as a percentage of loans at period end		0.91			0.83			0.84			0.85			0.86

(1) The initial allowance for credit losses on purchased credit deteriorated (“PCD”) loans acquired during the period measured approximately $2.8 million, of which approximately $2.3 million was charged-off related to PCD loans that met the Company’s charge-off policy at the time of acquisition. After considering these loans that were immediately charged-off, the net impact of PCD allowance for credit losses at the acquisition date was approximately $470,000.

TABLE 11: ALLOWANCE AND PROVISION FOR CREDIT LOSSES BY COMPONENT

	Three Months Ended														Years Ended
	Dec 31,		Sep 30,			Jun 30,			Mar 31,			Dec 31,			Dec 31,		Dec 31,
(In thousands)	2022			2022			2022			2022			2021			2022		2021
Provision for loan losses	$	29,110	$	(2,385	)	$	10,782		$	5,214		$	4,929		$	42,721	$	(50,563	)
Provision for unfunded lending-related commitments losses		18,358		8,578			9,711			(1,189	)		4,375			35,458		(8,717	)
Provision for held-to-maturity securities losses		178		227			(76	)		81			(5	)		410		17
Provision for credit losses	$	47,646	$	6,420		$	20,417		$	4,106		$	9,299		$	78,589	$	(59,263	)

Allowance for loan losses	$	270,173	$	246,110		$	251,769		$	250,539		$	247,835
Allowance for unfunded lending-related commitments losses		87,275		68,918			60,340			50,629			51,818
Allowance for loan losses and unfunded lending-related commitments losses		357,448		315,028			312,109			301,168			299,653
Allowance for held-to-maturity securities losses		488		310			83			159			78
Allowance for credit losses	$	357,936	$	315,338		$	312,192		$	301,327		$	299,731

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 December 31, 2022, September 30, 2022 and June 30, 2022.

	As of Dec 31, 2022						As of Sep 30, 2022						As of Jun 30, 2022
(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, excluding PPP loans	$	12,520,241	$	142,769	1.14	%	$	12,215,592	$	135,315	1.11	%	$	11,965,016	$	142,916	1.19	%
Commercial PPP loans		28,923		0	0.00			43,658		1	0.00			82,089		3	0.00
Commercial real estate:
Construction and development		1,486,930		75,907	5.10			1,525,511		51,389	3.37			1,506,318		45,522	3.02
Non-construction		8,464,017		108,445	1.28			8,052,673		99,329	1.23			7,900,887		98,210	1.24
Home equity		332,698		7,573	2.28			328,822		7,055	2.15			325,826		6,990	2.15
Residential real estate		2,372,383		11,585	0.49			2,235,459		11,023	0.49			2,078,907		10,479	0.50
Premium finance receivables
Commercial insurance loans		5,849,459		9,967	0.17			5,713,340		9,736	0.17			5,541,447		6,840	0.12
Life insurance loans		8,090,998		704	0.01			8,004,856		696	0.01			7,608,433		662	0.01
Consumer and other		50,836		498	0.98			47,702		484	1.01			44,180		487	1.10
Total loans, net of unearned income	$	39,196,485	$	357,448	0.91	%	$	38,167,613	$	315,028	0.83	%	$	37,053,103	$	312,109	0.84	%
Total loans, net of unearned income, excluding PPP loans	$	39,167,562	$	357,448	0.91	%	$	38,123,955	$	315,027	0.83	%	$	36,971,014	$	312,106	0.84	%

Total core loans⁽¹⁾	$	22,490,701	$	320,403	1.42	%	$	21,697,055	$	273,947	1.26	%	$	20,994,470	$	275,188	1.31	%
Total niche loans⁽¹⁾		16,676,861		37,045	0.22			16,426,900		41,080	0.25			15,976,544		36,918	0.23
Total PPP loans		28,923		0	0.00			43,658		1	0.00			82,089		3	0.00

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

TABLE 13: LOAN PORTFOLIO AGING

(In thousands)	Dec 31, 2022		Sep 30, 2022		Jun 30, 2022		Mar 31, 2022		Dec 31, 2021
Loan Balances:
Commercial
Nonaccrual	$	35,579	$	44,293	$	32,436	$	16,878	$	20,399
90+ days and still accruing		462		237		—		—		15
60-89 days past due		21,128		24,641		16,789		1,294		24,262
30-59 days past due		56,696		34,917		14,120		31,889		43,861
Current		12,435,299		12,155,162		11,983,760		11,533,902		11,815,531
Total commercial	$	12,549,164	$	12,259,250	$	12,047,105	$	11,583,963	$	11,904,068
Commercial real estate
Nonaccrual	$	6,387	$	10,477	$	10,718	$	12,301	$	21,746
90+ days and still accruing		—		—		—		—		—
60-89 days past due		2,244		6,041		6,771		2,648		284
30-59 days past due		30,675		29,971		34,220		30,141		40,443
Current		9,911,641		9,531,695		9,355,496		9,189,984		8,927,813
Total commercial real estate	$	9,950,947	$	9,578,184	$	9,407,205	$	9,235,074	$	8,990,286
Home equity
Nonaccrual	$	1,487	$	1,320	$	1,084	$	1,747	$	2,574
90+ days and still accruing		—		—		—		—		—
60-89 days past due		—		125		154		199		—
30-59 days past due		2,152		848		930		545		1,120
Current		329,059		326,529		323,658		318,944		331,461
Total home equity	$	332,698	$	328,822	$	325,826	$	321,435	$	335,155
Residential real estate
Early buy-out loans guaranteed by U.S. government agencies⁽¹⁾	$	164,788	$	148,664		113,856	$	50,096	$	30,828
Nonaccrual		10,171		9,787		8,330		7,262		16,440
90+ days and still accruing		—		—		—		—		—
60-89 days past due		4,364		2,149		534		293		982
30-59 days past due		9,982		15		147		18,808		12,145
Current		2,183,078		2,074,844		1,956,040		1,723,526		1,576,704
Total residential real estate	$	2,372,383	$	2,235,459	$	2,078,907	$	1,799,985	$	1,637,099
Premium finance receivables – property & casualty
Nonaccrual	$	13,470	$	13,026	$	13,303	$	6,707	$	5,433
90+ days and still accruing		15,841		16,624		6,447		12,363		7,210
60-89 days past due		14,926		15,301		15,299		8,890		15,490
30-59 days past due		40,557		21,128		23,313		21,278		22,419
Current		5,764,665		5,647,261		5,483,085		4,888,170		4,804,935
Total Premium finance receivables – property & casualty	$	5,849,459	$	5,713,340	$	5,541,447	$	4,937,408	$	4,855,487
Premium finance receivables – life insurance
Nonaccrual	$	—	$	—	$	—	$	—	$	—
90+ days and still accruing		17,245		1,831		—		—		7
60-89 days past due		5,260		13,628		1,796		22,401		12,614
30-59 days past due		68,725		44,954		65,155		15,522		66,651
Current		7,999,768		7,944,443		7,541,482		7,316,240		6,963,538
Total Premium finance receivables – life insurance	$	8,090,998	$	8,004,856	$	7,608,433	$	7,354,163	$	7,042,810
Consumer and other
Nonaccrual	$	6	$	7	$	8	$	4	$	477
90+ days and still accruing		49		31		25		43		137
60-89 days past due		18		26		8		5		34
30-59 days past due		224		343		119		221		509
Current		50,539		47,295		44,020		48,246		23,042
Total consumer and other	$	50,836	$	47,702	$	44,180	$	48,519	$	24,199
Total loans, net of unearned income
Early buy-out loans guaranteed by U.S. government agencies⁽¹⁾	$	164,788	$	148,664	$	113,856	$	50,096	$	30,828
Nonaccrual		67,100		78,910		65,879		44,899		67,069
90+ days and still accruing		33,597		18,723		6,472		12,406		7,369
60-89 days past due		47,940		61,911		41,351		35,730		53,666
30-59 days past due		209,011		132,176		138,004		118,404		187,148
Current		38,674,049		37,727,229		36,687,541		35,019,012		34,443,024
Total loans, net of unearned income	$	39,196,485	$	38,167,613	$	37,053,103	$	35,280,547	$	34,789,104

(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⁾ AND TROUBLED DEBT RESTRUCTURINGS (“TDRs”)

	Dec 31,			Sep 30,			Jun 30,			Mar 31,			Dec 31,
(Dollars in thousands)		2022			2022			2022			2022			2021
Loans past due greater than 90 days and still accruing⁽²⁾:
Commercial	$	462		$	237		$	—		$	—		$	15
Commercial real estate		—			—			—			—			—
Home equity		—			—			—			—			—
Residential real estate		—			—			—			—			—
Premium finance receivables – property & casualty		15,841			16,624			6,447			12,363			7,210
Premium finance receivables – life insurance		17,245			1,831			—			—			7
Consumer and other		49			31			25			43			137
Total loans past due greater than 90 days and still accruing		33,597			18,723			6,472			12,406			7,369
Non-accrual loans:
Commercial		35,579			44,293			32,436			16,878			20,399
Commercial real estate		6,387			10,477			10,718			12,301			21,746
Home equity		1,487			1,320			1,084			1,747			2,574
Residential real estate		10,171			9,787			8,330			7,262			16,440
Premium finance receivables – property & casualty		13,470			13,026			13,303			6,707			5,433
Premium finance receivables – life insurance		—			—			—			—			—
Consumer and other		6			7			8			4			477
Total non-accrual loans		67,100			78,910			65,879			44,899			67,069
Total non-performing loans:
Commercial		36,041			44,530			32,436			16,878			20,414
Commercial real estate		6,387			10,477			10,718			12,301			21,746
Home equity		1,487			1,320			1,084			1,747			2,574
Residential real estate		10,171			9,787			8,330			7,262			16,440
Premium finance receivables – property & casualty		29,311			29,650			19,750			19,070			12,643
Premium finance receivables – life insurance		17,245			1,831			—			—			7
Consumer and other		55			38			33			47			614
Total non-performing loans	$	100,697		$	97,633		$	72,351		$	57,305		$	74,438
Other real estate owned		8,589			5,376			5,574			4,978			1,959
Other real estate owned – from acquisitions		1,311			1,311			1,265			1,225			2,312
Other repossessed assets		—			—			—			—			—
Total non-performing assets	$	110,597		$	104,320		$	79,190		$	63,508		$	78,709
Accruing TDRs not included within non-performing assets	$	36,620		$	34,238		$	36,184		$	35,922		$	37,486
Total non-performing loans by category as a percent of its own respective category’s period-end balance:
Commercial		0.29	%		0.36	%		0.27	%		0.15	%		0.17	%
Commercial real estate		0.06			0.11			0.11			0.13			0.24
Home equity		0.45			0.40			0.33			0.54			0.77
Residential real estate		0.43			0.44			0.40			0.40			1.00
Premium finance receivables – property & casualty		0.50			0.52			0.36			0.39			0.26
Premium finance receivables – life insurance		0.21			0.02			—			—			0.00
Consumer and other		0.11			0.08			0.07			0.10			2.54
Total loans, net of unearned income		0.26	%		0.26	%		0.20	%		0.16	%		0.21	%
Total non-performing assets as a percentage of total assets		0.21	%		0.20	%		0.16	%		0.13	%		0.16	%
Allowance for loan losses and unfunded lending-related commitments losses as a percentage of non-accrual loans		532.71	%		399.22	%		473.76	%		670.77	%		446.78	%

(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.
(2) As of December 31, 2022, no TDRs were past due greater than 90 days and still accruing. As of September 30, 2022, June 30, 2022, March 31, 2022, and December 31, 2021, approximately $1.1 million,$541,000, $320,000 and $320,000, respectively, of TDRs were past due greater than 90 days and still accruing interest.

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

	Three Months Ended															Years Ended
	Dec 31,			Sep 30,			Jun 30,			Mar 31,			Dec 31,			Dec 31,			Dec 31,
(In thousands)		2022			2022			2022			2022			2021			2022			2021

Balance at beginning of period	$	97,633		$	72,351		$	57,305		$	74,438		$	90,041		$	74,438		$	127,513
Additions from becoming non-performing in the respective period		10,027			35,234			22,841			4,141			6,851			72,243			38,848
Return to performing status		(1,167	)		(154	)		(1,000	)		(729	)		(6,616	)		(3,050	)		(10,592	)
Payments received		(16,351	)		(20,417	)		(4,029	)		(20,139	)		(13,212	)		(60,936	)		(53,823	)
Transfer to OREO and other repossessed assets		(3,365	)		(185	)		(1,611	)		(4,377	)		(275	)		(9,538	)		(6,027	)
Charge-offs, net		(1,363	)		(341	)		(1,969	)		(2,354	)		(5,167	)		(6,027	)		(13,351	)
Net change for niche loans⁽¹⁾		15,283			11,145			814			6,325			2,816			33,567			(8,130	)
Balance at end of period	$	100,697		$	97,633		$	72,351		$	57,305		$	74,438		$	100,697		$	74,438

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

TDRs

	Dec 31,		Sep 30,		Jun 30,		Mar 31,		Dec 31,
(In thousands)		2022		2022		2022		2022		2021
Accruing TDRs:
Commercial	$	2,462	$	2,254	$	2,456	$	2,773	$	4,131
Commercial real estate		15,048		8,967		9,659		10,068		8,421
Residential real estate and other		19,110		23,017		24,069		23,081		24,934
Total accrual	$	36,620	$	34,238	$	36,184	$	35,922	$	37,486
Non-accrual TDRs:⁽¹⁾
Commercial	$	345	$	4,599	$	4,786	$	4,935	$	6,746
Commercial real estate		1,823		1,880		1,955		2,050		2,050
Residential real estate and other		2,311		2,516		2,453		1,964		3,027
Total non-accrual	$	4,479	$	8,995	$	9,194	$	8,949	$	11,823
Total TDRs:
Commercial	$	2,807	$	6,853	$	7,242	$	7,708	$	10,877
Commercial real estate		16,871		10,847		11,614		12,118		10,471
Residential real estate and other		21,421		25,533		26,522		25,045		27,961
Total TDRs	$	41,099	$	43,233	$	45,378	$	44,871	$	49,309

(1) Included in total non-performing loans.

Other Real Estate Owned

	Three Months Ended
	Dec 31,			Sep 30,			Jun 30,			Mar 31,			Dec 31,
(In thousands)		2022			2022			2022			2022			2021
Balance at beginning of period	$	6,687		$	6,839		$	6,203		$	4,271		$	13,845
Disposals/resolved		(152	)		(133	)		(1,172	)		(2,497	)		(9,664	)
Transfers in at fair value, less costs to sell		3,365			134			2,090			4,429			275
Fair value adjustments		—			(153	)		(282	)		—			(185	)
Balance at end of period	$	9,900		$	6,687		$	6,839		$	6,203		$	4,271

	Period End
	Dec 31,			Sep 30,			Jun 30,			Mar 31,			Dec 31,
Balance by Property Type:		2022			2022			2022			2022			2021
Residential real estate	$	1,585		$	1,585		$	1,630		$	1,127		$	1,310
Residential real estate development		—			—			133			—			—
Commercial real estate		8,315			5,102			5,076			5,076			2,961
Total	$	9,900		$	6,687		$	6,839		$	6,203		$	4,271

TABLE 15: NON-INTEREST INCOME

	Three Months Ended															Q4 2022 compared to Q3 2022					Q4 2022 compared to Q4 2021
	Dec 31,			Sep 30,			Jun 30,			Mar 31,			Dec 31,			Q4 2022 compared to Q3 2022					Q4 2022 compared to Q4 2021
(Dollars in thousands)		2022			2022			2022			2022			2021		$ Change			% Change		$ Change			% Change
Brokerage	$	4,177		$	4,587		$	4,272		$	4,632		$	5,292		$	(410	)	(9	)%	$	(1,115	)	(21	)%
Trust and asset management		26,550			28,537			27,097			26,762			27,197			(1,987	)	(7	)		(647	)	(2	)
Total wealth management		30,727			33,124			31,369			31,394			32,489			(2,397	)	(7	)		(1,762	)	(5	)
Mortgage banking		17,407			27,221			33,314			77,231			53,138			(9,814	)	(36	)		(35,731	)	(67	)
Service charges on deposit accounts		13,054			14,349			15,888			15,283			14,734			(1,295	)	(9	)		(1,680	)	(11	)
Losses on investment securities, net		(6,745	)		(3,103	)		(7,797	)		(2,782	)		(1,067	)		(3,642	)	NM			(5,678	)	NM
Fees from covered call options		7,956			1,366			1,069			3,742			1,128			6,590		NM			6,828		NM
Trading (losses) gains, net		(306	)		(7	)		176			3,889			206			(299	)	NM			(512	)	NM
Operating lease income, net		12,384			12,644			15,007			15,475			14,204			(260	)	(2	)		(1,820	)	(13	)
Other:
Interest rate swap fees		2,319			1,997			3,300			4,569			3,526			322		16			(1,207	)	(34	)
BOLI		1,394			248			(884	)		48			1,192			1,146		NM			202		17
Administrative services		1,736			1,533			1,591			1,853			1,846			203		13			(110	)	(6	)
Foreign currency remeasurement gains (losses)		277			(93	)		97			11			111			370		NM			166		NM
Early pay-offs of capital leases		131			138			160			265			249			(7	)	(5	)		(118	)	(47	)
Miscellaneous		13,505			12,065			9,652			11,812			12,011			1,440		12			1,494		12
Total Other		19,362			15,888			13,916			18,558			18,935			3,474		22			427		2
Total Non-Interest Income	$	93,839		$	101,482		$	102,942		$	162,790		$	133,767		$	(7,643	)	(8	)%	$	(39,928	)	(30	)%

NM – Not meaningful.
BOLI – Bank-owned life insurance.

	Years Ended
	Dec 31,			Dec 31,			$			%
(Dollars in thousands)		2022			2021		Change			Change
Brokerage	$	17,668		$	20,710		$	(3,042	)	(15	)%
Trust and asset management		108,946			103,309			5,637		5
Total wealth management		126,614			124,019			2,595		2
Mortgage banking		155,173			273,010			(117,837	)	(43	)
Service charges on deposit accounts		58,574			54,168			4,406		8
Losses on investment securities, net		(20,427	)		(1,059	)		(19,368	)	NM
Fees from covered call options		14,133			3,673			10,460		NM
Trading gains, net		3,752			245			3,507		NM
Operating lease income, net		55,510			53,691			1,819		3
Other:
Interest rate swap fees		12,185			13,702			(1,517	)	(11	)
BOLI		806			5,812			(5,006	)	(86	)
Administrative services		6,713			5,689			1,024		18
Foreign currency remeasurement gains (losses)		292			(495	)		787		NM
Early pay-offs of leases		694			601			93		15
Miscellaneous		47,034			53,064			(6,030	)	(11	)
Total Other		67,724			78,373			(10,649	)	(14	)
Total Non-Interest Income	$	461,053		$	586,120		$	(125,067	)	(21	)%

NM – Not meaningful.
BOLI – Bank-owned life insurance.

TABLE 16: NON-INTEREST EXPENSE

	Three Months Ended												Q4 2022 compared to Q3 2022					Q4 2022 compared to Q4 2021
	Dec 31,		Sep 30,		Jun 30,		Mar 31,			Dec 31,			Q4 2022 compared to Q3 2022					Q4 2022 compared to Q4 2021
(Dollars in thousands)	2022		2022		2022			2022			2021		$ Change			% Change		$ Change			% Change
Salaries and employee benefits:
Salaries	$	100,232	$	97,419	$	92,414	$	92,116		$	91,612		$	2,813		3	%	$	8,620		9	%
Commissions and incentive compensation		49,546		50,403		46,131		51,793			49,923			(857	)	(2	)		(377	)	(1	)
Benefits		30,553		28,273		28,781		28,446			25,596			2,280		8			4,957		19
Total salaries and employee benefits		180,331		176,095		167,326		172,355			167,131			4,236		2			13,200		8
Software and equipment		24,699		24,126		24,250		22,810			23,708			573		2			991		4
Operating lease equipment		10,078		9,448		8,774		9,708			10,147			630		7			(69	)	(1	)
Occupancy, net		17,763		17,727		17,651		17,824			18,343			36		0			(580	)	(3	)
Data processing		7,927		7,767		8,010		7,505			7,207			160		2			720		10
Advertising and marketing		14,279		16,600		16,615		11,924			13,981			(2,321	)	(14	)		298		2
Professional fees		9,267		7,544		7,876		8,401			7,551			1,723		23			1,716		23
Amortization of other acquisition-related intangible assets		1,436		1,492		1,579		1,609			1,811			(56	)	(4	)		(375	)	(21	)
FDIC insurance		6,775		7,186		6,949		7,729			7,317			(411	)	(6	)		(542	)	(7	)
OREO expense, net		369		229		294		(1,032	)		(641	)		140		61			1,010		NM
Other:
Lending expenses, net of deferred origination costs		4,951		4,533		4,270		6,821			5,525			418		9			(574	)	(10	)
Travel and entertainment		5,681		4,252		3,897		2,676			3,782			1,429		34			1,899		50
Miscellaneous		24,280		19,470		21,177		15,968			17,537			4,810		25			6,743		38
Total other		34,912		28,255		29,344		25,465			26,844			6,657		24			8,068		30
Total Non-Interest Expense	$	307,836	$	296,469	$	288,668	$	284,298		$	283,399		$	11,367		4	%	$	24,437		9	%

NM – Not meaningful.

	Years Ended
	Dec 31,			Dec 31,			$			%
(Dollars in thousands)		2022			2021		Change			Change
Salaries and employee benefits:
Salaries	$	382,181		$	361,915		$	20,266		6	%
Commissions and incentive compensation		197,873			222,067			(24,194	)	(11	)
Benefits		116,053			107,687			8,366		8
Total salaries and employee benefits		696,107			691,669			4,438		1
Software and equipment		95,885			87,515			8,370		10
Operating lease equipment		38,008			40,880			(2,872	)	(7	)
Occupancy, net		70,965			74,184			(3,219	)	(4	)
Data processing		31,209			27,279			3,930		14
Advertising and marketing		59,418			47,275			12,143		26
Professional fees		33,088			29,494			3,594		12
Amortization of other acquisition-related intangible assets		6,116			7,734			(1,618	)	(21	)
FDIC insurance		28,639			27,030			1,609		6
OREO expense, net		(140	)		(1,654	)		1,514		(92	)
Other:
Lending expenses, net of deferred origination costs		20,575			22,794			(2,219	)	(10	)
Travel and entertainment		16,506			10,048			6,458		64
Miscellaneous		80,895			68,296			12,599		18
Total other		117,976			101,138			16,838		17
Total Non-Interest Expense	$	1,177,271		$	1,132,544		$	44,727		4	%

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, pre-tax income, excluding provision for credit losses, and pre-tax income, excluding provision for credit losses, adjusted for changes in fair value of MSRs, net of economic hedge and early buy-out loans guaranteed by U.S. government agencies. 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, and pre-tax income, excluding provision for credit losses, adjusted for changes in fair value of MSRs, net of economic hedge and early buy-out loans guaranteed by U.S. government agencies, as useful measurements of the Company’s core net income.

	Three Months Ended															Years Ended
	Dec 31,			Sep 30,			Jun 30,			Mar 31,			Dec 31,			Dec 31,			Dec 31,
(Dollars and shares in thousands)		2022			2022			2022			2022			2021			2022			2021
Reconciliation of Non-GAAP Net Interest Margin and Efficiency Ratio:
(A) Interest Income (GAAP)	$	580,745		$	466,478		$	371,968		$	328,252		$	327,979		$	1,747,443		$	1,275,484
Taxable-equivalent adjustment:
– Loans		1,594			1,030			568			427			417			3,619			1,627
– Liquidity Management Assets		538			502			472			465			486			1,977			1,972
– Other Earning Assets		1			1			1			2			2			5			2
(B) Interest Income (non-GAAP)	$	582,878		$	468,011		$	373,009		$	329,146		$	328,884		$	1,753,044		$	1,279,085
(C) Interest Expense (GAAP)		123,929			65,030			34,164			28,958			32,003			252,081			150,527
(D) Net Interest Income (GAAP) (A minus C)	$	456,816		$	401,448		$	337,804		$	299,294		$	295,976		$	1,495,362		$	1,124,957
(E) Net Interest Income (non-GAAP) (B minus C)	$	458,949		$	402,981		$	338,845		$	300,188		$	296,881		$	1,500,963		$	1,128,558
Net interest margin (GAAP)		3.71	%		3.34	%		2.92	%		2.60	%		2.54	%		3.15	%		2.57	%
Net interest margin, fully taxable-equivalent (non-GAAP)		3.73			3.35			2.93			2.61			2.55			3.17			2.58
(F) Non-interest income	$	93,839		$	101,482		$	102,942		$	162,790		$	133,767		$	461,053		$	586,120
(G) Losses on investment securities, net		(6,745	)		(3,103	)		(7,797	)		(2,782	)		(1,067	)		(20,427	)		(1,059	)
(H) Non-interest expense		307,836			296,469			288,668			284,298			283,399			1,177,271			1,132,544
Efficiency ratio (H/(D+F-G))		55.23	%		58.59	%		64.36	%		61.16	%		65.78	%		59.55	%		66.15	%
Efficiency ratio (non-GAAP) (H/(E+F-G))		55.02			58.41			64.21			61.04			65.64			59.38			66.01

Reconciliation of Non-GAAP Tangible Common Equity Ratio:
Total shareholders’ equity (GAAP)	$	4,796,838		$	4,637,980		$	4,727,623		$	4,492,256		$	4,498,688
Less: Non-convertible preferred stock (GAAP)		(412,500	)		(412,500	)		(412,500	)		(412,500	)		(412,500	)
Less: Intangible assets (GAAP)		(675,710	)		(676,699	)		(679,827	)		(682,101	)		(683,456	)
(I) Total tangible common shareholders’ equity (non-GAAP)	$	3,708,628		$	3,548,781		$	3,635,296		$	3,397,655		$	3,402,732
(J) Total assets (GAAP)	$	52,949,649		$	52,382,939		$	50,969,332		$	50,250,661		$	50,142,143
Less: Intangible assets (GAAP)		(675,710	)		(676,699	)		(679,827	)		(682,101	)		(683,456	)
(K) Total tangible assets (non-GAAP)	$	52,273,939		$	51,706,240		$	50,289,505		$	49,568,560		$	49,458,687
Common equity to assets ratio (GAAP) (L/J)		8.3	%		8.1	%		8.5	%		8.1	%		8.1	%
Tangible common equity ratio (non-GAAP) (I/K)		7.1			6.9			7.2			6.9			6.9

	Three Months Ended															Years Ended
	Dec 31,			Sep 30,			Jun 30,			Mar 31,			Dec 31,			Dec 31,			Dec 31,
(Dollars and shares in thousands)		2022			2022			2022			2022			2021			2022			2021
Reconciliation of Non-GAAP Tangible Book Value per Common Share:
Total shareholders’ equity	$	4,796,838		$	4,637,980		$	4,727,623		$	4,492,256		$	4,498,688
Less: Preferred stock		(412,500	)		(412,500	)		(412,500	)		(412,500	)		(412,500	)
(L) Total common equity	$	4,384,338		$	4,225,480		$	4,315,123		$	4,079,756		$	4,086,188
(M) Actual common shares outstanding		60,794			60,743			60,722			57,253			57,054
Book value per common share (L/M)	$	72.12		$	69.56		$	71.06		$	71.26		$	71.62
Tangible book value per common share (non-GAAP) (I/M)		61.00			58.42			59.87			59.34			59.64

Reconciliation of Non-GAAP Return on Average Tangible Common Equity:
(N) Net income applicable to common shares	$	137,826		$	135,970		$	87,522		$	120,400		$	91,766		$	481,718		$	438,187
Add: Intangible asset amortization		1,436			1,492			1,579			1,609			1,811			6,116			7,734
Less: Tax effect of intangible asset amortization		(370	)		(425	)		(445	)		(430	)		(505	)		(1,664	)		(2,080	)
After-tax intangible asset amortization	$	1,066		$	1,067		$	1,134		$	1,179		$	1,306		$	4,452		$	5,654
(O) Tangible net income applicable to common shares (non-GAAP)	$	138,892		$	137,037		$	88,656		$	121,579		$	93,072		$	486,170		$	443,841
Total average shareholders’ equity	$	4,710,856		$	4,795,387		$	4,526,110		$	4,500,460		$	4,433,953		$	4,634,224		$	4,300,742
Less: Average preferred stock		(412,500	)		(412,500	)		(412,500	)		(412,500	)		(412,500	)		(412,500	)		(412,500	)
(P) Total average common shareholders’ equity	$	4,298,356		$	4,382,887		$	4,113,610		$	4,087,960		$	4,021,453		$	4,221,724		$	3,888,242
Less: Average intangible assets		(676,371	)		(678,953	)		(681,091	)		(682,603	)		(677,470	)		(679,735	)		(678,739	)
(Q) Total average tangible common shareholders’ equity (non-GAAP)	$	3,621,985		$	3,703,934		$	3,432,519		$	3,405,357		$	3,343,983		$	3,541,989		$	3,209,503
Return on average common equity, annualized (N/P)		12.72	%		12.31	%		8.53	%		11.94	%		9.05	%		11.41	%		11.27	%
Return on average tangible common equity, annualized (non-GAAP) (O/Q)		15.21			14.68			10.36			14.48			11.04			13.73			13.83

Reconciliation of Non-GAAP Pre-Tax, Pre-Provision Income, Adjusted for Changes in Fair Value of MSRs, net of economic hedge and Early Buy-out Loans Guaranteed by U.S. Government Agencies:
Income before taxes	$	195,173		$	200,041		$	131,661		$	173,680		$	137,045		$	700,555		$	637,796
Add: Provision for credit losses		47,646			6,420			20,417			4,106			9,299			78,589			(59,263	)
Pre-tax income, excluding provision for credit losses (non-GAAP)	$	242,819		$	206,461		$	152,078		$	177,786		$	146,344		$	779,144		$	578,533
Less: Changes in fair value of MSRs, net of economic hedge and early buy-out loans guaranteed by U.S. government agencies		702			2,472			(445	)		(43,365	)		(6,656	)		(40,636	)		(18,273	)
Pre-tax income, excluding provision for credit losses, adjusted for changes in fair value of MSRs, net of economic hedge and early buy-out loans guaranteed by U.S. government agencies (non-GAAP)	$	243,521		$	208,933		$	151,633		$	134,421		$	139,688		$	738,508		$	560,260

	Dec 31,			Dec 31,			Dec 31,			Dec 31,			Dec 31,			Dec 31,			Dec 31,			Dec 31,			Dec 31,
		2020			2019			2018			2017			2016			2015			2014			2013			2012
Reconciliation of Non-GAAP Tangible Book Value per Common Share:
Total shareholders’ equity	$	4,115,995		$	3,691,250		$	3,267,570		$	2,976,939		$	2,695,617		$	2,352,274		$	2,069,822		$	1,900,589		$	1,804,705
Less: Non-convertible preferred stock (GAAP)		(412,500	)		(125,000	)		(125,000	)		(125,000	)		(251,257	)		(251,287	)		(126,467	)		(126,477	)		(176,406	)
(R) Less: Intangible assets (GAAP)		(681,747	)		(692,277	)		(622,565	)		(519,505	)		(520,438	)		(495,970	)		(424,445	)		(393,760	)		(366,348	)
(I) Total tangible common shareholders’ equity (non-GAAP)	$	3,021,748		$	2,873,973		$	2,520,005		$	2,332,434		$	1,923,922		$	1,605,017		$	1,518,910		$	1,380,352		$	1,261,951
Actual common shares outstanding		56,770			57,822			56,408			55,965			51,881			48,383			46,805			46,117			36,858
Add: Tangible equity unit conversion shares		—			—			—			—			—			—			—			—			6,241
(M) Common shares used for book value calculation		56,770			57,822			56,408			55,965			51,881			48,383			46,805			46,117			43,099
Book value per common share ((I-R)/M)	$	65.24		$	61.68		$	55.71		$	50.96		$	47.11		$	43.42		$	41.52		$	38.47		$	37.78
Tangible book value per common share (non-GAAP) (I/M)		53.23			49.70			44.67			41.68			37.08			33.17			32.45			29.93			29.28

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, Crete, Countryside, Darien, Deerfield, Des Plaines, Downers Grove, Elgin, Elk Grove Village, Elmhurst, Evanston, Evergreen Park, Frankfort, Geneva, Glen Ellyn, Glencoe, Glenview, Gurnee, Grayslake, 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, Northfield, Norridge, Oak Lawn, Oak Park, Orland Park, Palatine, Park Ridge, Prospect Heights, Riverside, Rockford, Rolling Meadows, Round Lake Beach, Shorewood, Skokie, South Holland, 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 Dyer, Indiana and in Naples, Florida.

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, such as the impacts of the COVID-19 pandemic (including the continued emergence of variant strains), and which may include, but are not limited to, those listed below and the Risk Factors discussed under Item 1A of the Company’s 2021 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, and management’s long-term performance goals, as well as statements relating to the anticipated effects on financial condition and results of operations from expected developments or events, 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. Actual results could differ materially from those addressed in the forward-looking statements as a result of numerous factors, including the following:

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;
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, 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 (including developments and volatility arising from or related to the COVID-19 pandemic) 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 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;
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;
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 discontinue use of LIBOR and transition to an alternative 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, including those changes that are in response to the COVID-19 pandemic, including without limitation the Coronavirus Aid, Relief, and Economic Security Act, the Economic Aid to Hard-Hit Small Businesses, Nonprofits and Venues Act, and the rules and regulations that may be promulgated thereunder;
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 the COVID-19 pandemic, 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; and
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.

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 Thursday, January 19, 2023 at 10:00 a.m. (CST) regarding fourth quarter and full year 2022 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 link included within the Company’s press release dated December 22, 2022 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 fourth quarter and full year 2022 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:
Edward J. Wehmer, Founder & Chief Executive Officer
David A. Dykstra, Vice Chairman & Chief Operating Officer
(847) 939-9000
Web site address: www.wintrust.com

Wintrust Financial Corporation Reports Fourth Quarter and Full Year 2022 Results

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