Wintrust Financial Corporation Reports Record Full Year Net Income

Written by Customer Service on January 17, 2024. Posted in Earnings Releases And Operating Results.

ROSEMONT, Ill., Jan. 17, 2024 (GLOBE NEWSWIRE) — Wintrust Financial Corporation (“Wintrust”, “the Company”, “we” or “our”) (Nasdaq: WTFC) announced record annual net income of $622.6 million or $9.58 per diluted common share for the year ended December 31, 2023 as compared to net income of $509.7 million or $8.02 per diluted common share for the same period of 2022, an increase in diluted earnings per common share of 19%. Pre-tax, pre-provision income (non-GAAP) totaled a record $959.5 million for the year ended December 31, 2023, up 23% as compared to $779.1 million in the same period of 2022.

The Company recorded quarterly net income of $123.5 million or $1.87 per diluted common share for the fourth quarter of 2023 as compared to $164.2 million or $2.53 per diluted common share for the third quarter of 2023. Pre-tax, pre-provision income (non-GAAP) totaled $208.2 million as compared to $244.8 million for the third quarter of 2023. During the fourth quarter of 2023, the Company recognized an accrual of $34.4 million for the estimated amount owed as a result of the FDIC special assessment on uninsured deposits in response to certain bank failures occurring earlier in 2023 as well as a $9.7 million unfavorable net valuation adjustment from certain mortgage-related assets held at fair value.

Timothy S. Crane, President and Chief Executive Officer, commented, “We are very pleased with our strong 2023 results, including record net income for the full year 2023. Throughout the year, we continued to leverage our position in the markets we serve to sustain steady growth in loans and deposits. Wintrust finished the year with great momentum as our fourth quarter results were highlighted by record net interest income, increased net interest margin and growth in our loan portfolio while continuing to exhibit low levels of net charge-offs.”

Additionally, Mr. Crane noted, “Given current economic conditions, we continue to feel good about the position of our businesses throughout our footprint. Opportunities in our markets exist to grow earning assets and deposits. Our net interest margin for the fourth quarter continued to stay within our expected range, increasing by two basis points. In the current interest rate environment, we still expect to maintain our net interest margin within a narrow range around current levels during the first quarter of 2024 and stay relatively stable for the remainder of 2024, depending on the pace and magnitude of potential interest rate changes. We believe this stability in net interest margin along with steady growth will drive strong financial performance in future quarters.”

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

Net interest margin increased by two basis points to 3.62% (3.64% on a fully taxable-equivalent basis, non-GAAP) during the fourth quarter of 2023.
- The higher net interest margin as well as growth in earning assets drove record quarterly net interest income of $470.0 million, increasing $7.6 million.
Total loans increased by $686 million, or 7% annualized.
Total deposits increased by $404 million, or 4% annualized.
Total assets increased by $705 million, or 5% annualized.
Impacts compared to the third quarter of 2023 from changes in the interest rate environment during the fourth quarter of 2023 included the following:
- Non-interest income was impacted by a more unfavorable net valuation adjustment from certain mortgage-related assets held at fair value. Unfavorable net valuation adjustments totaled $9.7 million in the fourth quarter of 2023 compared to unfavorable net valuation adjustments of $2.3 million in the third quarter of 2023.
- Book value per common share increased $6.24 to $81.43 and tangible book value per common share (non-GAAP) increased $6.26 to $70.33, primarily the result of favorable changes in the fair values of certain assets and liabilities, and the resulting benefit to accumulated other comprehensive income (loss).
Non-interest expense was negatively impacted by an accrual of $34.4 million for the estimated amount owed as a result of the FDIC special assessment on uninsured deposits in response to certain bank failures occurring earlier in 2023.

Mr. Crane noted, “Our higher net interest margin coupled with growth in earning assets resulted in record net interest income in the fourth quarter of 2023 as we grew our net interest income by $7.6 million. Our net interest margin increased by two basis points from the third quarter with deposit pricing pressures continuing to moderate in the fourth quarter of 2023. We expect this moderation to continue into the first quarter of 2024. Further, we continued to generate strong loan growth during the quarter, with total loans increasing $686 million, or 7% on an annualized basis. Loan growth was driven primarily by draws on existing commercial real estate loan facilities as well as growth in our property and casualty premium finance portfolio due to favorable market conditions and seasonally strong originations in the fourth quarter of the year. Loan growth in the fourth quarter of 2023 was primarily funded by continued deposit growth during the period, as deposits increased by approximately $404 million, or 4% on an annualized basis. We believe leveraging our customer relationships, market positioning, diversified products and competitive rates will continue to generate deposits to fuel balance sheet growth. Non-interest bearing deposits increased slightly during the fourth quarter and remained stable as a percentage of total deposits at 23% at December 31, 2023. The combination of balance sheet growth and a stable net interest margin is expected to result in continued growth of our net interest income.”

Commenting on credit quality, Mr. Crane stated, “Credit metrics remained strong. Net charge-offs totaled $14.9 million or 14 basis points of average total loans on an annualized basis in the fourth quarter of 2023 as compared to $8.1 million or eight basis points of average total loans on an annualized basis in the third quarter of 2023. Non-performing loans totaled $139.0 million, or 0.33% of total loans, at the end of the fourth quarter of 2023 compared to $133.1 million, or 0.32% of total loans, at the end of the third quarter of 2023. Though these credit metrics increased during the period, net charge-offs as a percentage of average total loans and non-performing loans as a percentage of total loans remained at historically low levels in the fourth quarter of 2023. The allowance for credit losses on our core loan portfolio as of December 31, 2023 was approximately 1.55% of the outstanding balance (see Table 12 for additional information). We believe that the Company’s reserves remain appropriate and we remain diligent in our review of credit.”

Mr. Crane concluded, “We enter 2024 with significant momentum. Total loans as of December 31, 2023 were $770 million higher than average total loans in the fourth quarter of 2023, which, coupled with a stable net interest margin, is expected to help contribute to our momentum into the first quarter of 2024. We continue to win business and expand our franchise, keeping us well-positioned in the markets we serve.”

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

Graphs available at the following link:
http://ml.globenewswire.com/Resource/Download/ed04ab1f-56be-4565-9426-2e50bbf63d3d

SUMMARY OF RESULTS:

BALANCE SHEET

Total assets increased $704.7 million in the fourth quarter of 2023 as compared to the third quarter of 2023. Total loans increased by $685.8 million as compared to the third quarter of 2023. The increase in loans was primarily the result of draws on existing commercial real estate loan facilities as well as growth in our property and casualty premium finance portfolio due to favorable market conditions and seasonally strong originations in the fourth quarter of the year.

Total liabilities increased by $320.8 million in the fourth quarter of 2023 as compared to the third quarter of 2023 primarily due to a $404.5 million increase in total deposits. Non-interest bearing deposits as a percentage of total deposits was 23% at both December 31, 2023 and September 30, 2023. The Company’s loans to deposits ratio ended the quarter at 92.8%.

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 2023, net interest income totaled $470.0 million, an increase of $7.6 million as compared to the third quarter of 2023. The $7.6 million increase in net interest income in the fourth quarter of 2023 compared to the third quarter of 2023 was primarily due to a $509.1 million increase in average earning assets and a two basis point increase in net interest margin.

Net interest margin was 3.62% (3.64% on a fully taxable-equivalent basis, non-GAAP) during the fourth quarter of 2023 compared to 3.60% (3.62% on a fully taxable-equivalent basis, non-GAAP) during the third quarter of 2023. The net interest margin increase as compared to the third quarter of 2023 was primarily due to a 18 basis point increase in yield on earning assets and a three basis point increase in the net free funds contribution. This increase was partially offset by a 19 basis point increase in the rate paid on interest-bearing liabilities. The 18 basis point increase in the yield on earning assets in the fourth quarter of 2023 as compared to the third quarter of 2023 was primarily due to an 18 basis point expansion on loan yields and 17 basis point increase in liquidity management asset yield. The 19 basis point increase on the rate paid on interest-bearing liabilities in the fourth quarter of 2023 as compared to the third quarter of 2023 was primarily due to a 20 basis point increase in the rate paid on interest-bearing deposits.

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

ASSET QUALITY

The allowance for credit losses totaled $427.6 million as of December 31, 2023, an increase of $28.1 million as compared to $399.5 million as of September 30, 2023. A provision for credit losses totaling $42.9 million was recorded for the fourth quarter of 2023 as compared to $19.9 million recorded in the third quarter of 2023. The increase in the allowance for credit losses in the fourth quarter of 2023 was primarily the result of moderate forecasted deterioration in macroeconomic factors and portfolio changes during the period. For more information regarding the allowance for credit losses and provision for credit losses, see Table 11 in this report.

Management believes the allowance for credit losses is appropriate to account for expected credit losses. The Current Expected Credit Losses 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, 2023, September 30, 2023, and June 30, 2023 is shown on Table 12 of this report.

Net charge-offs totaled $14.9 million in the fourth quarter of 2023, as compared to $8.1 million of net charge-offs in the third quarter of 2023. The increase in net charge-offs during the fourth quarter of 2023 was primarily the result of increased net charge-offs within the commercial and commercial real estate portfolios. Net charge-offs as a percentage of average total loans were 14 basis points in the fourth quarter of 2023 on an annualized basis compared to eight basis points on an annualized basis in the third quarter of 2023. For more information regarding net charge-offs, see Table 10 in this report.

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

Non-performing assets totaled $152.3 million and comprised 0.27% of total assets as of December 31, 2023, as compared to $147.2 million as of September 30, 2023. Non-performing loans totaled $139.0 million, or 0.33% of total loans, at December 31, 2023. The increase in the fourth quarter was primarily due to an increase in certain credits within the commercial real estate portfolio becoming nonaccrual. For more information regarding non-performing assets, see Table 14 in this report.

Though these credit metrics increased during the period, net charge-offs as a percentage of average total loans and non-performing loans as a percentage of total loans remained at historically low levels in the fourth quarter of 2023.

NON-INTEREST INCOME

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

Mortgage banking revenue decreased by $20.0 million in the fourth quarter of 2023 as compared to the third quarter of 2023 primarily due to a $18.3 million unfavorable valuation adjustment to the fair value of mortgage servicing rights, net of servicing hedge, compared to the third quarter of 2023 as well as $7.0 million lower in production revenue. This was partially offset by a favorable adjustment to 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, of $9.1 million when compared to the third quarter of 2023. The Company monitors the relationship of these assets and seeks to minimize the earnings impact of fair value changes.

The Company recognized $2.5 million in net gains on investment securities in the fourth quarter of 2023 as compared to $2.4 million in net losses in the third quarter of 2023. The change from period to period was primarily the result of unrealized gains and losses on the Company’s equity investment securities with a readily determinable fair value.

Fluctuations in trading gains and losses in the fourth quarter of 2023 compared to the third quarter of 2023 were primarily the result of fair value adjustments related to interest rate derivatives not designated as hedges.

Other income increased by $3.9 million in the fourth quarter of 2023 compared to the third quarter of 2023 primarily due to a favorable adjustment to the Company’s held-for-investment portfolio of early buy-out exercised loans guaranteed by U.S. government agencies, which are held at fair value, of $1.9 million when compared to the third quarter of 2023, as well as higher swap fees, higher BOLI income and favorable foreign currency remeasurement adjustments.

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

NON-INTEREST EXPENSE

Salaries and employee benefits expense increased by $1.6 million in the fourth quarter of 2023 as compared to the third quarter of 2023. The $1.6 million increase is primarily related to increased employee insurance costs and other benefits during the fourth quarter of 2023.

Software and equipment expense increased $1.8 million primarily as a result of increased software licensing expenses as the Company invests in enhancements to the digital customer experience, upgrades to infrastructure and enhancements to information security capabilities.

Operating lease equipment cost decreased $1.3 million in the fourth quarter of 2023 as compared to the third quarter of 2023 primarily due to the impairment of certain assets during the third quarter of 2023.

Occupancy expenses decreased $3.2 million in the fourth quarter of 2023 as compared to the third quarter of 2023 primarily due to the impairment in the third quarter of 2023 of two Company-owned buildings that are no longer being used.

Data processing expense decreased $1.9 million in the fourth quarter of 2023 as compared to the third quarter of 2023 primarily due to the termination in the third quarter of 2023 of a duplicate service contract related to the acquisition of a wealth management business in 2023.

Advertising and marketing expenses in the fourth quarter of 2023 totaled $17.2 million, which is a $1.0 million decrease as compared to the third quarter of 2023 primarily due to a decrease in sports sponsorships.

FDIC insurance increased $33.9 million in the fourth quarter of 2023 as compared to the third quarter of 2023. This was primarily the result of an accrual recognized for the estimated amount owed as a result of the FDIC special assessment on uninsured deposits in response to certain bank failures occurring earlier in 2023.

The Company recorded net OREO income of $1.6 million in the fourth quarter of 2023, compared to net OREO expense of $120,000 in the third quarter of 2023. The net OREO income in the fourth quarter of 2023 was the result of realized gains on sales of OREO. OREO expenses also include all costs associated with obtaining, maintaining and selling other real estate owned properties as well as valuation adjustments.

Miscellaneous expense in the fourth quarter of 2023 increased by $3.6 million as compared to the third quarter of 2023. Miscellaneous expense includes ATM expenses, correspondent bank charges, directors’ fees, telephone, postage, corporate insurance, dues and subscriptions, problem loan expenses and other miscellaneous operational losses and costs.

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

INCOME TAXES

The Company recorded income tax expense of $41.8 million in the fourth quarter of 2023 compared to $60.7 million in the third quarter of 2023. The effective tax rates were 25.27% in the fourth quarter of 2023 compared to 26.98% in the third quarter of 2023. The effective tax rates were partially impacted by an overall lower level of pre-tax income in the comparable periods, primarily due to the accrual of $34.4 million for the estimated amount owed as a result of the FDIC special assessment on uninsured deposits and an overall lower level of provision for state income taxes.

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 2023, this unit expanded its commercial, commercial real estate and residential real estate loan portfolios, while increasing net interest income.

Mortgage banking revenue was $7.4 million for the fourth quarter of 2023, a decrease of $20.0 million as compared to the third quarter of 2023, primarily due to a $18.3 million unfavorable valuation adjustment to the fair value of mortgage servicing rights, net of servicing hedge, compared to the third quarter of 2023 as well as $7.0 million lower in production revenue. This was partially offset by a favorable adjustment to 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, of $9.1 million when compared to the third quarter of 2023. Service charges on deposit accounts totaled $14.5 million in the fourth quarter of 2023, which was relatively stable compared to the third quarter of 2023. The Company’s gross commercial and commercial real estate loan pipelines remained solid as of December 31, 2023 indicating momentum for expected continued loan growth in the first quarter of 2024.

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 portfolios were $4.6 billion during the fourth quarter of 2023 and average balances decreased by $74.2 million as compared to the third quarter of 2023. The Company’s leasing portfolio balance increased in the fourth quarter of 2023, with its portfolio of assets, including capital leases, loans and equipment on operating leases, totaling $3.4 billion as of December 31, 2023 as compared to $3.3 billion as of September 30, 2023. Revenues from the Company’s out-sourced administrative services business were $1.3 million in the fourth quarter of 2023, which was relatively stable compared to the third quarter of 2023.

Wealth Management

Through four separate subsidiaries within its wealth management unit, the Company offers a full range of wealth management services, including trust and investment services, tax-deferred like-kind exchange services, asset management, securities brokerage services and 401(k) and retirement plan services. Wealth management revenue totaled $33.3 million in the fourth quarter of 2023, which was relatively stable compared to the third quarter of 2023. At December 31, 2023, the Company’s wealth management subsidiaries had approximately $47.1 billion of assets under administration, which included $8.7 billion of assets owned by the Company and its subsidiary banks, representing an increase from the $44.7 billion of assets under administration at September 30, 2023.

ITEM IMPACTING COMPARATIVE FINANCIAL RESULTS

Business Combination

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

WINTRUST FINANCIAL CORPORATION
Key Operating Measures

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

										% or ⁽¹⁾ basis point (bp) change from 3rd Quarter 2023			% or basis point (bp) change from 4th Quarter 2022
	Three Months Ended
(Dollars in thousands, except per share data)	Dec 31, 2023			Sep 30, 2023			Dec 31, 2022
Net income	$	123,480		$	164,198		$	144,817		(25	)	%	(15	)	%
Pre-tax income, excluding provision for credit losses (non-GAAP)⁽²⁾		208,151			244,781			242,819		(15	)		(14	)
Net income per common share – Diluted		1.87			2.53			2.23		(26	)		(16	)
Cash dividends declared per common share		0.40			0.40			0.34		—			18
Net revenue⁽³⁾		570,803			574,836			550,655		(1	)		4
Net interest income		469,974			462,358			456,816		2			3
Net interest margin		3.62	%		3.60	%		3.71	%	2		bps	(9	)	bps
Net interest margin – fully taxable-equivalent (non-GAAP)⁽²⁾		3.64			3.62			3.73		2			(9	)
Net overhead ratio⁽⁴⁾		1.89			1.59			1.63		30			26
Return on average assets		0.89			1.20			1.10		(31	)		(21	)
Return on average common equity		9.93			13.35			12.72		(342	)		(279	)
Return on average tangible common equity (non-GAAP)⁽²⁾		11.73			15.73			15.21		(400	)		(348	)
At end of period
Total assets	$	56,259,934		$	55,555,246		$	52,949,649		5		%	6		%
Total loans⁽⁵⁾		42,131,831			41,446,032			39,196,485		7			7
Total deposits		45,397,170			44,992,686			42,902,544		4			6
Total shareholders’ equity		5,399,526			5,015,613			4,796,838		30			13

(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, 2023			Sep 30, 2023			Jun 30, 2023			Mar 31, 2023			Dec 31, 2022			Dec 31, 2023			Dec 31, 2022
Selected Financial Condition Data (at end of period):
Total assets	$	56,259,934		$	55,555,246		$	54,286,176		$	52,873,511		$	52,949,649
Total loans⁽¹⁾		42,131,831			41,446,032			41,023,408			39,565,471			39,196,485
Total deposits		45,397,170			44,992,686			44,038,707			42,718,211			42,902,544
Total shareholders’ equity		5,399,526			5,015,613			5,041,912			5,015,506			4,796,838
Selected Statements of Income Data:
Net interest income	$	469,974		$	462,358		$	447,537		$	457,995		$	456,816		$	1,837,864		$	1,495,362
Net revenue⁽²⁾		570,803			574,836			560,567			565,764			550,655			2,271,970			1,956,415
Net income		123,480			164,198			154,750			180,198			144,817			622,626			509,682
Pre-tax income, excluding provision for credit losses (non-GAAP)⁽³⁾		208,151			244,781			239,944			266,595			242,819			959,471			779,144
Net income per common share – Basic		1.90			2.57			2.41			2.84			2.27			9.72			8.14
Net income per common share – Diluted		1.87			2.53			2.38			2.80			2.23			9.58			8.02
Cash dividends declared per common share		0.40			0.40			0.40			0.40			0.34			1.60			1.36
Selected Financial Ratios and Other Data:
Performance Ratios:
Net interest margin		3.62	%		3.60	%		3.64	%		3.81	%		3.71	%		3.66	%		3.15	%
Net interest margin – fully taxable-equivalent (non-GAAP)⁽³⁾		3.64			3.62			3.66			3.83			3.73			3.68			3.17
Non-interest income to average assets		0.73			0.82			0.86			0.84			0.71			0.81			0.91
Non-interest expense to average assets		2.62			2.41			2.44			2.33			2.34			2.45			2.33
Net overhead ratio⁽⁴⁾		1.89			1.59			1.58			1.49			1.63			1.64			1.42
Return on average assets		0.89			1.20			1.18			1.40			1.10			1.16			1.01
Return on average common equity		9.93			13.35			12.79			15.67			12.72			12.90			11.41
Return on average tangible common equity (non-GAAP)⁽³⁾		11.73			15.73			15.12			18.55			15.21			15.23			13.73
Average total assets	$	55,017,075		$	54,381,981		$	52,601,953		$	52,075,318		$	52,087,618		$	53,529,506		$	50,424,319
Average total shareholders’ equity		5,066,196			5,083,883			5,044,718			4,895,271			4,710,856			5,023,153			4,634,224
Average loans to average deposits ratio		92.9	%		92.4	%		94.3	%		93.0	%		90.5	%		93.1	%		87.5	%
Period-end loans to deposits ratio		92.8			92.1			93.2			92.6			91.4
Common Share Data at end of period:
Market price per common share	$	92.75		$	75.50		$	72.62		$	72.95		$	84.52
Book value per common share		81.43			75.19			75.65			75.24			72.12
Tangible book value per common share (non-GAAP)⁽³⁾		70.33			64.07			64.50			64.22			61.00
Common shares outstanding		61,243,626			61,222,058			61,197,676			61,176,415			60,794,008
Other Data at end of period:
Common equity to assets ratio		8.9	%		8.3	%		8.5	%		8.7	%		8.3	%
Tangible common equity ratio (non-GAAP)⁽³⁾		7.7			7.1			7.4			7.5			7.1
Tier 1 leverage ratio⁽⁵⁾		9.3			9.2			9.3			9.1			8.8
Risk-based capital ratios:
Tier 1 capital ratio⁽⁵⁾		10.2			10.2			10.1			10.1			10.0
Common equity tier 1 capital ratio⁽⁵⁾		9.4			9.3			9.3			9.2			9.1
Total capital ratio⁽⁵⁾		12.1			12.0			12.0			12.1			11.9
Allowance for credit losses⁽⁶⁾	$	427,612		$	399,531		$	387,786		$	376,261		$	357,936
Allowance for loan and unfunded lending-related commitment losses to total loans		1.01	%		0.96	%		0.94	%		0.95	%		0.91	%
Number of:
Bank subsidiaries		15			15			15			15			15
Banking offices		174			174			175			174			174

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

WINTRUST FINANCIAL CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CONDITION

	(Unaudited)			(Unaudited)			(Unaudited)			(Unaudited)
	Dec 31,			Sep 30,			Jun 30,			Mar 31,			Dec 31,
(In thousands)		2023			2023			2023			2023			2022
Assets
Cash and due from banks	$	423,404		$	418,088		$	513,858		$	445,928		$	490,908
Federal funds sold and securities purchased under resale agreements		60			60			59			58			58
Interest-bearing deposits with banks		2,084,323			2,448,570			2,163,708			1,563,578			1,988,719
Available-for-sale securities, at fair value		3,502,915			3,611,835			3,492,481			3,259,845			3,243,017
Held-to-maturity securities, at amortized cost		3,856,916			3,909,150			3,564,473			3,606,391			3,640,567
Trading account securities		4,707			1,663			3,027			102			1,127
Equity securities with readily determinable fair value		139,268			134,310			116,275			111,943			110,365
Federal Home Loan Bank and Federal Reserve Bank stock		205,003			204,040			195,117			244,957			224,759
Brokerage customer receivables		10,592			14,042			15,722			16,042			16,387
Mortgage loans held-for-sale, at fair value		292,722			304,808			338,728			302,493			299,935
Loans, net of unearned income		42,131,831			41,446,032			41,023,408			39,565,471			39,196,485
Allowance for loan losses		(344,235	)		(315,039	)		(302,499	)		(287,972	)		(270,173	)
Net loans		41,787,596			41,130,993			40,720,909			39,277,499			38,926,312
Premises, software and equipment, net		748,966			747,501			749,393			760,283			764,798
Lease investments, net		281,280			275,152			274,351			256,301			253,928
Accrued interest receivable and other assets		1,551,899			1,674,681			1,455,748			1,413,795			1,391,342
Trade date securities receivable		690,722			—			—			939,758			921,717
Goodwill		656,672			656,109			656,674			653,587			653,524
Other acquisition-related intangible assets		22,889			24,244			25,653			20,951			22,186
Total assets	$	56,259,934		$	55,555,246		$	54,286,176		$	52,873,511		$	52,949,649
Liabilities and Shareholders’ Equity
Deposits:
Non-interest-bearing	$	10,420,401		$	10,347,006		$	10,604,915		$	11,236,083		$	12,668,160
Interest-bearing		34,976,769			34,645,680			33,433,792			31,482,128			30,234,384
Total deposits		45,397,170			44,992,686			44,038,707			42,718,211			42,902,544
Federal Home Loan Bank advances		2,326,071			2,326,071			2,026,071			2,316,071			2,316,071
Other borrowings		645,813			643,999			665,219			583,548			596,614
Subordinated notes		437,866			437,731			437,628			437,493			437,392
Junior subordinated debentures		253,566			253,566			253,566			253,566			253,566
Accrued interest payable and other liabilities		1,799,922			1,885,580			1,823,073			1,549,116			1,646,624
Total liabilities		50,860,408			50,539,633			49,244,264			47,858,005			48,152,811
Shareholders’ Equity:
Preferred stock		412,500			412,500			412,500			412,500			412,500
Common stock		61,269			61,244			61,219			61,198			60,797
Surplus		1,943,806			1,933,226			1,923,623			1,913,947			1,902,474
Treasury stock		(2,217	)		(1,966	)		(1,966	)		(1,966	)		(304	)
Retained earnings		3,345,399			3,253,332			3,120,626			2,997,263			2,849,007
Accumulated other comprehensive loss		(361,231	)		(642,723	)		(474,090	)		(367,436	)		(427,636	)
Total shareholders’ equity		5,399,526			5,015,613			5,041,912			5,015,506			4,796,838
Total liabilities and shareholders’ equity	$	56,259,934		$	55,555,246		$	54,286,176		$	52,873,511		$	52,949,649

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

	Three Months Ended														Years Ended
(Dollars in thousands, except per share data)	Dec 31, 2023			Sep 30, 2023			Jun 30, 2023		Mar 31, 2023			Dec 31, 2022			Dec 31, 2023			Dec 31, 2022
Interest income
Interest and fees on loans	$	694,943		$	666,260		$	621,057	$	558,692		$	498,838		$	2,540,952		$	1,507,726
Mortgage loans held-for-sale		4,318			4,767			4,178		3,528			3,997			16,791			21,195
Interest-bearing deposits with banks		21,762			26,866			16,882		13,468			20,349			78,978			43,447
Federal funds sold and securities purchased under resale agreements		578			1,157			1		70			1,263			1,806			4,903
Investment securities		68,237			59,164			51,243		59,943			53,092			238,587			160,600
Trading account securities		15			6			6		14			6			41			22
Federal Home Loan Bank and Federal Reserve Bank stock		3,792			3,896			3,544		3,680			2,918			14,912			8,622
Brokerage customer receivables		203			284			265		295			282			1,047			928
Total interest income		793,848			762,400			697,176		639,690			580,745			2,893,114			1,747,443
Interest expense
Interest on deposits		285,390			262,783			213,495		144,802			95,447			906,470			175,202
Interest on Federal Home Loan Bank advances		18,316			17,436			17,399		19,135			13,823			72,286			30,329
Interest on other borrowings		9,557			9,384			8,485		7,854			5,313			35,280			14,294
Interest on subordinated notes		5,522			5,491			5,523		5,488			5,520			22,024			22,004
Interest on junior subordinated debentures		5,089			4,948			4,737		4,416			3,826			19,190			10,252
Total interest expense		323,874			300,042			249,639		181,695			123,929			1,055,250			252,081
Net interest income		469,974			462,358			447,537		457,995			456,816			1,837,864			1,495,362
Provision for credit losses		42,908			19,923			28,514		23,045			47,646			114,390			78,589
Net interest income after provision for credit losses		427,066			442,435			419,023		434,950			409,170			1,723,474			1,416,773
Non-interest income
Wealth management		33,275			33,529			33,858		29,945			30,727			130,607			126,614
Mortgage banking		7,433			27,395			29,981		18,264			17,407			83,073			155,173
Service charges on deposit accounts		14,522			14,217			13,608		12,903			13,054			55,250			58,574
Gains (losses) on investment securities, net		2,484			(2,357	)		0		1,398			(6,745	)		1,525			(20,427	)
Fees from covered call options		4,679			4,215			2,578		10,391			7,956			21,863			14,133
Trading (losses) gains, net		(505	)		728			106		813			(306	)		1,142			3,752
Operating lease income, net		14,162			13,863			12,227		13,046			12,384			53,298			55,510
Other		24,779			20,888			20,672		21,009			19,362			87,348			67,724
Total non-interest income		100,829			112,478			113,030		107,769			93,839			434,106			461,053
Non-interest expense
Salaries and employee benefits		193,971			192,338			184,923		176,781			180,331			748,013			696,107
Software and equipment		27,779			25,951			26,205		24,697			24,699			104,632			95,885
Operating lease equipment		10,694			12,020			9,816		9,833			10,078			42,363			38,008
Occupancy, net		18,102			21,304			19,176		18,486			17,763			77,068			70,965
Data processing		8,892			10,773			9,726		9,409			7,927			38,800			31,209
Advertising and marketing		17,166			18,169			17,794		11,946			14,279			65,075			59,418
Professional fees		8,768			8,887			8,940		8,163			9,267			34,758			33,088
Amortization of other acquisition-related intangible assets		1,356			1,408			1,499		1,235			1,436			5,498			6,116
FDIC insurance		43,677			9,748			9,008		8,669			6,775			71,102			28,639
OREO expenses, net		(1,559	)		120			118		(207	)		369			(1,528	)		(140	)
Other		33,806			29,337			33,418		30,157			34,912			126,718			117,976
Total non-interest expense		362,652			330,055			320,623		299,169			307,836			1,312,499			1,177,271
Income before taxes		165,243			224,858			211,430		243,550			195,173			845,081			700,555
Income tax expense		41,763			60,660			56,680		63,352			50,356			222,455			190,873
Net income	$	123,480		$	164,198		$	154,750	$	180,198		$	144,817		$	622,626		$	509,682
Preferred stock dividends		6,991			6,991			6,991		6,991			6,991			27,964			27,964
Net income applicable to common shares	$	116,489		$	157,207		$	147,759	$	173,207		$	137,826		$	594,662		$	481,718
Net income per common share – Basic	$	1.90		$	2.57		$	2.41	$	2.84		$	2.27		$	9.72		$	8.14
Net income per common share – Diluted	$	1.87		$	2.53		$	2.38	$	2.80		$	2.23		$	9.58		$	8.02
Cash dividends declared per common share	$	0.40		$	0.40		$	0.40	$	0.40		$	0.34		$	1.60		$	1.36
Weighted average common shares outstanding		61,236			61,213			61,192		60,950			60,769			61,149			59,205
Dilutive potential common shares		1,166			964			902		873			1,096			938			886
Average common shares and dilutive common shares		62,402			62,177			62,094		61,823			61,865			62,087			60,091

TABLE 1: LOAN PORTFOLIO MIX AND GROWTH RATES

											% Growth From
(Dollars in thousands)	Dec 31, 2023		Sep 30, 2023		Jun 30, 2023		Mar 31, 2023		Dec 31, 2022		Sep 30, 2023⁽¹⁾		Dec 31, 2022
Balance:
Mortgage loans held-for-sale, excluding early buy-out exercised loans guaranteed by U.S. government agencies	$	155,529	$	190,511	$	235,570	$	155,687	$	156,297	(73	)%	0	%
Mortgage loans held-for-sale, early buy-out exercised loans guaranteed by U.S. government agencies		137,193		114,297		103,158		146,806		143,638	79		(4	)
Total mortgage loans held-for-sale	$	292,722	$	304,808	$	338,728	$	302,493	$	299,935	(16	)%	(2	)%

Core loans:
Commercial
Commercial and industrial	$	5,804,629	$	5,894,732	$	5,737,633	$	5,855,035	$	5,852,166	(6	)%	(1	)%
Asset-based lending		1,433,250		1,396,591		1,465,848		1,482,071		1,473,344	10		(3	)
Municipal		677,143		676,915		653,117		655,301		668,235	0		1
Leases		2,208,368		2,109,628		1,925,767		1,904,137		1,840,928	19		20
PPP loans		11,533		13,744		15,337		17,195		28,923	(64	)	(60	)
Commercial real estate
Residential construction		58,642		51,550		51,689		69,998		76,877	55		(24	)
Commercial construction		1,729,937		1,547,322		1,409,751		1,234,762		1,102,098	47		57
Land		295,462		294,901		298,996		292,293		307,955	1		(4	)
Office		1,455,417		1,422,748		1,404,422		1,392,040		1,337,176	9		9
Industrial		2,135,876		2,057,957		2,002,740		1,858,088		1,836,276	15		16
Retail		1,337,517		1,341,451		1,304,083		1,309,680		1,304,444	(1	)	3
Multi-family		2,815,911		2,710,829		2,696,478		2,635,411		2,560,709	15		10
Mixed use and other		1,515,402		1,519,422		1,440,652		1,446,806		1,425,412	(1	)	6
Home equity		343,976		343,258		336,974		337,016		332,698	1		3
Residential real estate
Residential real estate loans for investment		2,619,083		2,538,630		2,455,392		2,309,393		2,207,595	13		19
Residential mortgage loans, early buy-out eligible loans guaranteed by U.S. government agencies		92,780		97,911		117,024		119,301		80,701	(21	)	15
Residential mortgage loans, early buy-out exercised loans guaranteed by U.S. government agencies		57,803		71,062		70,824		76,851		84,087	(74	)	(31	)
Total core loans	$	24,592,729	$	24,088,651	$	23,386,727	$	22,995,378	$	22,519,624	8	%	9	%

Niche loans:
Commercial
Franchise	$	1,092,532	$	1,074,162	$	1,091,164	$	1,131,913	$	1,169,623	7	%	(7	)%
Mortgage warehouse lines of credit		230,211		245,450		381,043		235,684		237,392	(25	)	(3	)
Community Advantage – homeowners association		452,734		424,054		405,042		389,922		380,875	27		19
Insurance agency lending		921,653		890,197		925,520		905,727		897,678	14		3
Premium Finance receivables
U.S. property & casualty insurance		5,983,103		5,815,346		5,900,228		5,043,486		5,103,820	11		17
Canada property & casualty insurance		920,426		907,401		862,470		695,394		745,639	6		23
Life insurance		7,877,943		7,931,808		8,039,273		8,125,802		8,090,998	(3	)	(3	)
Consumer and other		60,500		68,963		31,941		42,165		50,836	(49	)	19
Total niche loans	$	17,539,102	$	17,357,381	$	17,636,681	$	16,570,093	$	16,676,861	4	%	5	%

Total loans, net of unearned income	$	42,131,831	$	41,446,032	$	41,023,408	$	39,565,471	$	39,196,485	7	%	7	%

(1) Annualized.

TABLE 2: DEPOSIT PORTFOLIO MIX AND GROWTH RATES

																% Growth From
(Dollars in thousands)	Dec 31, 2023			Sep 30, 2023			Jun 30, 2023			Mar 31, 2023			Dec 31, 2022			Sep 30, 2023⁽¹⁾		Dec 31, 2022
Balance:
Non-interest-bearing	$	10,420,401		$	10,347,006		$	10,604,915		$	11,236,083		$	12,668,160		3	%	(18	)%
NOW and interest-bearing demand deposits		5,797,649			6,006,114			5,814,836			5,576,558			5,591,986		(14	)	4
Wealth management deposits⁽²⁾		1,614,499			1,788,099			1,417,984			1,809,933			2,463,833		(39	)	(34	)
Money market		15,149,215			14,478,504			14,523,124			13,552,277			12,886,795		18		18
Savings		5,790,334			5,584,294			5,321,578			5,192,108			4,556,635		15		27
Time certificates of deposit		6,625,072			6,788,669			6,356,270			5,351,252			4,735,135		(10	)	40
Total deposits	$	45,397,170		$	44,992,686		$	44,038,707		$	42,718,211		$	42,902,544		4	%	6	%
Mix:
Non-interest-bearing		23	%		23	%		24	%		26	%		30	%
NOW and interest-bearing demand deposits		13			13			13			13			13
Wealth management deposits⁽²⁾		4			4			3			4			5
Money market		33			32			33			32			30
Savings		13			13			12			12			11
Time certificates of deposit		14			15			15			13			11
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”), and trust and asset management customers of the Company.

TABLE 3: TIME CERTIFICATES OF DEPOSIT MATURITY/RE-PRICING ANALYSIS
As of December 31, 2023

(Dollars in thousands)	Total Time Certificates of Deposit		Weighted-Average Rate of Maturing Time Certificates of Deposit
1-3 months	$	1,314,517	3.64	%
4-6 months		2,040,662	4.53
7-9 months		1,679,572	4.57
10-12 months		960,154	3.98
13-18 months		501,492	3.49
19-24 months		56,895	2.65
24+ months		71,780	1.62
Total	$	6,625,072	4.15	%

TABLE 4: QUARTERLY AVERAGE BALANCES

	Average Balance for three months ended,
	Dec 31,			Sep 30,			Jun 30,			Mar 31,			Dec 31,
(In thousands)		2023			2023			2023			2023			2022
Interest-bearing deposits with banks, securities purchased under resale agreements and cash equivalents⁽¹⁾	$	1,682,176		$	2,053,568		$	1,454,057		$	1,235,748		$	2,449,889
Investment securities⁽²⁾		7,971,068			7,706,285			7,252,582			7,956,722			7,310,383
FHLB and FRB stock		204,593			201,252			223,813			233,615			185,290
Liquidity management assets⁽³⁾		9,857,837			9,961,105			8,930,452			9,426,085			9,945,562
Other earning assets⁽³⁾⁽⁴⁾		14,821			17,879			17,401			18,445			18,585
Mortgage loans held-for-sale		279,569			319,099			307,683			270,966			308,639
Loans, net of unearned income⁽³⁾⁽⁵⁾		41,361,952			40,707,042			40,106,393			39,093,368			38,566,871
Total earning assets⁽³⁾		51,514,179			51,005,125			49,361,929			48,808,864			48,839,657
Allowance for loan and investment security losses		(329,441	)		(319,491	)		(302,627	)		(282,704	)		(252,827	)
Cash and due from banks		443,989			459,819			481,510			488,457			475,691
Other assets		3,388,348			3,236,528			3,061,141			3,060,701			3,025,097
Total assets	$	55,017,075		$	54,381,981		$	52,601,953		$	52,075,318		$	52,087,618

NOW and interest-bearing demand deposits	$	5,868,976		$	5,815,155		$	5,540,597		$	5,271,740		$	5,598,291
Wealth management deposits		1,704,099			1,512,765			1,545,626			2,167,081			2,883,247
Money market accounts		14,212,320			14,155,446			13,735,924			12,533,468			12,319,842
Savings accounts		5,676,155			5,472,535			5,206,609			4,830,322			4,403,113
Time deposits		6,645,980			6,495,906			5,603,024			5,041,638			4,023,232
Interest-bearing deposits		34,107,530			33,451,807			31,631,780			29,844,249			29,227,725
Federal Home Loan Bank advances		2,326,073			2,241,292			2,227,106			2,474,882			2,088,201
Other borrowings		633,673			657,454			625,757			602,937			480,553
Subordinated notes		437,785			437,658			437,545			437,422			437,312
Junior subordinated debentures		253,566			253,566			253,566			253,566			253,566
Total interest-bearing liabilities		37,758,627			37,041,777			35,175,754			33,613,056			32,487,357
Non-interest-bearing deposits		10,406,585			10,612,009			10,908,022			12,171,631			13,404,036
Other liabilities		1,785,667			1,644,312			1,473,459			1,395,360			1,485,369
Equity		5,066,196			5,083,883			5,044,718			4,895,271			4,710,856
Total liabilities and shareholders’ equity	$	55,017,075		$	54,381,981		$	52,601,953		$	52,075,318		$	52,087,618

Net free funds/contribution⁽⁶⁾	$	13,755,552		$	13,963,348		$	14,186,175		$	15,195,808		$	16,352,300

(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)		2023			2023			2023			2023			2022
Interest income:
Interest-bearing deposits with banks, securities purchased under resale agreements and cash equivalents	$	22,340		$	28,022		$	16,882		$	13,538		$	21,612
Investment securities		68,812			59,737			51,795			60,494			53,630
FHLB and FRB stock		3,792			3,896			3,544			3,680			2,918
Liquidity management assets⁽¹⁾		94,944			91,655			72,221			77,712			78,160
Other earning assets⁽¹⁾		222			291			272			313			289
Mortgage loans held-for-sale		4,318			4,767			4,178			3,528			3,997
Loans, net of unearned income⁽¹⁾		697,093			668,183			622,939			560,564			500,432
Total interest income	$	796,577		$	764,896		$	699,610		$	642,117		$	582,878

Interest expense:
NOW and interest-bearing demand deposits	$	38,124		$	36,001		$	29,178		$	18,772		$	14,982
Wealth management deposits		12,076			9,350			9,097			12,258			14,079
Money market accounts		130,252			124,742			106,630			68,276			45,468
Savings accounts		36,463			31,784			25,603			15,816			8,421
Time deposits		68,475			60,906			42,987			29,680			12,497
Interest-bearing deposits		285,390			262,783			213,495			144,802			95,447
Federal Home Loan Bank advances		18,316			17,436			17,399			19,135			13,823
Other borrowings		9,557			9,384			8,485			7,854			5,313
Subordinated notes		5,522			5,491			5,523			5,488			5,520
Junior subordinated debentures		5,089			4,948			4,737			4,416			3,826
Total interest expense	$	323,874		$	300,042		$	249,639		$	181,695		$	123,929

Less: Fully taxable-equivalent adjustment		(2,729	)		(2,496	)		(2,434	)		(2,427	)		(2,133	)
Net interest income (GAAP)⁽²⁾		469,974			462,358			447,537			457,995			456,816
Fully taxable-equivalent adjustment		2,729			2,496			2,434			2,427			2,133
Net interest income, fully taxable-equivalent (non-GAAP)⁽²⁾	$	472,703		$	464,854		$	449,971		$	460,422		$	458,949

(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, 2023		Sep 30, 2023		Jun 30, 2023		Mar 31, 2023		Dec 31, 2022
Yield earned on:
Interest-bearing deposits with banks, securities purchased under resale agreements and cash equivalents	5.27	%	5.41	%	4.66	%	4.44	%	3.50	%
Investment securities	3.42		3.08		2.86		3.08		2.91
FHLB and FRB stock	7.35		7.68		6.35		6.39		6.25
Liquidity management assets	3.82		3.65		3.24		3.34		3.12
Other earning assets	5.92		6.47		6.27		6.87		6.17
Mortgage loans held-for-sale	6.13		5.93		5.45		5.28		5.14
Loans, net of unearned income	6.69		6.51		6.23		5.82		5.15
Total earning assets	6.13	%	5.95	%	5.68	%	5.34	%	4.73	%

Rate paid on:
NOW and interest-bearing demand deposits	2.58	%	2.46	%	2.11	%	1.44	%	1.06	%
Wealth management deposits	2.81		2.45		2.36		2.29		1.94
Money market accounts	3.64		3.50		3.11		2.21		1.46
Savings accounts	2.55		2.30		1.97		1.33		0.76
Time deposits	4.09		3.72		3.08		2.39		1.23
Interest-bearing deposits	3.32		3.12		2.71		1.97		1.30
Federal Home Loan Bank advances	3.12		3.09		3.13		3.14		2.63
Other borrowings	5.98		5.66		5.44		5.28		4.39
Subordinated notes	5.00		4.98		5.06		5.02		5.05
Junior subordinated debentures	7.96		7.74		7.49		6.97		5.90
Total interest-bearing liabilities	3.40	%	3.21	%	2.85	%	2.19	%	1.51	%

Interest rate spread⁽¹⁾⁽²⁾	2.73	%	2.74	%	2.83	%	3.15	%	3.22	%
Less: Fully taxable-equivalent adjustment	(0.02	)	(0.02	)	(0.02	)	(0.02	)	(0.02	)
Net free funds/contribution⁽³⁾	0.91		0.88		0.83		0.68		0.51
Net interest margin (GAAP)⁽²⁾	3.62	%	3.60	%	3.64	%	3.81	%	3.71	%
Fully taxable-equivalent adjustment	0.02		0.02		0.02		0.02		0.02
Net interest margin, fully taxable-equivalent (non-GAAP)⁽²⁾	3.64	%	3.62	%	3.66	%	3.83	%	3.73	%

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

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

	Average Balance for twelve months ended,						Interest for twelve months ended,						Yield/Rate for twelve months ended,
(Dollars in thousands)	Dec 31, 2023			Dec 31, 2022			Dec 31, 2023			Dec 31, 2022			Dec 31, 2023		Dec 31, 2022
Interest-bearing deposits with banks, securities purchased under resale agreements and cash equivalents⁽¹⁾	$	1,608,835		$	3,323,196		$	80,783		$	48,350		5.02	%	1.45	%
Investment securities⁽²⁾		7,721,661			6,735,732			240,837			162,577		3.12		2.41
FHLB and FRB stock		215,699			150,223			14,912			8,622		6.91		5.74
Liquidity management assets⁽³⁾⁽⁴⁾	$	9,546,195		$	10,209,151		$	336,532		$	219,549		3.53	%	2.15	%
Other earning assets^(3)(4)(5)		17,129			22,391			1,098			955		6.41		4.27
Mortgage loans held-for-sale		294,421			496,088			16,791			21,195		5.70		4.27
Loans, net of unearned income^(3)(4)(6)		40,324,472			36,684,528			2,548,779			1,511,345		6.32		4.12
Total earning assets⁽⁴⁾	$	50,182,217		$	47,412,158		$	2,903,200		$	1,753,044		5.79	%	3.70	%
Allowance for loan and investment security losses		(308,724	)		(256,690	)
Cash and due from banks		468,298			473,025
Other assets		3,187,715			2,795,826
Total assets	$	53,529,506		$	50,424,319

NOW and interest-bearing demand deposits	$	5,626,277		$	5,355,077		$	122,074		$	27,566		2.17	%	0.51	%
Wealth management deposits		1,730,523			2,827,497			42,782			29,750		2.47		1.05
Money market accounts		13,665,248			12,254,159			429,900			80,591		3.15		0.66
Savings accounts		5,299,205			4,014,166			109,666			11,234		2.07		0.28
Time deposits		5,952,537			3,812,148			202,048			26,061		3.39		0.68
Interest-bearing deposits	$	32,273,790		$	28,263,047		$	906,470		$	175,202		2.81	%	0.62	%
Federal Home Loan Bank advances		2,316,722			1,484,663			72,287			30,329		3.12		2.04
Other borrowings		630,115			485,820			35,280			14,294		5.60		2.94
Subordinated notes		437,604			437,139			22,023			22,004		5.03		5.03
Junior subordinated debentures		253,566			253,566			19,190			10,252		7.57		4.10
Total interest-bearing liabilities	$	35,911,797		$	30,924,235		$	1,055,250		$	252,081		2.94	%	0.81	%
Non-interest-bearing deposits		11,018,596			13,667,879
Other liabilities		1,575,960			1,197,981
Equity		5,023,153			4,634,224
Total liabilities and shareholders’ equity	$	53,529,506		$	50,424,319
Interest rate spread⁽⁴⁾⁽⁷⁾													2.85	%	2.89	%
Less: Fully taxable-equivalent adjustment								(10,086	)		(5,601	)	(0.02	)	(0.02	)
Net free funds/contribution⁽⁸⁾	$	14,270,420		$	16,487,923								0.83		0.28
Net interest income/margin (GAAP)⁽⁴⁾							$	1,837,864		$	1,495,362		3.66	%	3.15	%
Fully taxable-equivalent adjustment								10,086			5,601		0.02		0.02
Net interest income/margin, fully taxable-equivalent (non-GAAP)⁽⁴⁾							$	1,847,950		$	1,500,963		3.68	%	3.17	%

(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, 2023	2.6	%	1.8	%	0.4	%	(0.7	)%
Sep 30, 2023	3.3		1.9		(2.0	)	(5.2	)
Jun 30, 2023	5.7		2.9		(2.9	)	(7.9	)
Mar 31, 2023	4.2		2.4		(2.4	)	(7.3	)
Dec 31, 2022	7.2		3.8		(5.0	)	(12.1	)

Ramp Scenario	+200 Basis Points		+100 Basis Points		-100 Basis Points		-200 Basis Points
Dec 31, 2023	1.6	%	1.2	%	(0.3	)%	(1.5	)%
Sep 30, 2023	1.7		1.2		(0.5	)	(2.4	)
Jun 30, 2023	2.9		1.8		(0.9	)	(3.4	)
Mar 31, 2023	3.0		1.7		(1.3	)	(3.4	)
Dec 31, 2022	5.6		3.0		(2.9	)	(6.8	)

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 may execute additional derivatives to mitigate potential fluctuations in the net interest margin in future years.

TABLE 9: MATURITIES AND SENSITIVITIES TO CHANGES IN INTEREST RATES

Loans repricing or contractual maturity period

As of December 31, 2023

One year or
less

From one to
five years

From five to
fifteen years

After fifteen
years

Total

(In thousands)

Commercial

Fixed rate

520,408

2,954,554

1,720,913

28,070

5,223,945

Variable rate

7,606,936

1,172

—

7,608,108

Total commercial

8,127,344

2,955,726

1,720,913

28,070

12,832,053

Commercial real estate

Fixed rate

646,873

2,870,147

525,167

50,726

4,092,913

Variable rate

7,233,835

17,377

—

7,251,251

Total commercial real estate

7,880,708

2,887,524

525,206

50,726

11,344,164

Home equity

Fixed rate

9,863

3,994

—

13,885

Variable rate

330,091

—

330,091

Total home equity

339,954

3,994

—

343,976

Residential real estate

Fixed rate

19,921

3,412

30,814

1,047,862

1,102,009

Variable rate

75,107

286,511

1,306,039

—

1,667,657

Total residential real estate

95,028

289,923

1,336,853

1,047,862

2,769,666

Premium finance receivables – property & casualty

Fixed rate

6,785,201

118,328

—

6,903,529

Variable rate

—

Total premium finance receivables – property & casualty

6,785,201

118,328

—

6,903,529

Premium finance receivables – life insurance

Fixed rate

78,342

614,816

3,891

—

697,049

Variable rate

7,180,894

—

7,180,894

Total premium finance receivables – life insurance

7,259,236

614,816

3,891

—

7,877,943

Consumer and other

Fixed rate

11,994

6,550

464

19,018

Variable rate

41,482

—

41,482

Total consumer and other

53,476

6,550

464

60,500

Total per category

Fixed rate

8,072,602

6,571,801

2,280,795

1,127,150

18,052,348

Variable rate

22,468,345

305,060

1,306,078

—

24,079,483

Total loans, net of unearned income

30,540,947

6,876,861

3,586,873

1,127,150

42,131,831

Variable Rate Loan Pricing by Index:

SOFR tenors

13,331,910

One- year CMT

6,133,619

Prime

3,430,421

Ameribor tenors

341,747

Other U.S. Treasury tenors

37,997

Other

803,789

Total variable rate

24,079,483

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

Graph available at the following link:
http://ml.globenewswire.com/Resource/Download/c7ce0095-db8d-4afa-92f9-f9c048beb947

Source: Bloomberg

As noted in the table on the previous page, the majority of the Company’s portfolio is tied to SOFR and CMT indices which, as shown in the table above, do not mirror the same changes as the Prime rate which has historically moved when the Federal Reserve raises or lowers interest rates. Specifically, the Company has variable rate loans of $10.7 billion tied to one-month SOFR and $6.1 billion tied to one-year CMT. The above chart shows:

	Basis Point (bp) Change in
	1-month SOFR		One- year CMT			Prime
Fourth Quarter 2023	3	bps	(67	)	bps	0	bps
Third Quarter 2023	18		6			25
Second Quarter 2023	34		76			25
First Quarter 2023	44		(9	)		50
Fourth Quarter 2022	132		68			125

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)		2023			2023			2023			2023			2022			2023			2022
Allowance for credit losses at beginning of period	$	399,531		$	387,786		$	376,261		$	357,936		$	315,338		$	357,936		$	299,731
Cumulative effect adjustment from the adoption of ASU 2022-02		—			—			—			741			—			741			—
Provision for credit losses		42,908			19,923			28,514			23,045			47,646			114,390			78,589
Other adjustments		62			(60	)		41			4			31			47			(108	)
Charge-offs:
Commercial		5,114			2,427			5,629			2,543			3,019			15,713			14,141
Commercial real estate		5,386			1,713			8,124			5			538			15,228			1,379
Home equity		—			227			—			—			—			227			432
Residential real estate		114			78			—			—			—			192			471
Premium finance receivables – property & casualty		6,706			5,830			4,519			4,629			3,629			21,684			14,240
Premium finance receivables – life insurance		—			18			134			21			28			173			35
Consumer and other		148			184			110			153			—			595			1,081
Total charge-offs		17,468			10,477			18,516			7,351			7,214			53,812			31,779
Recoveries:
Commercial		592			1,162			505			392			691			2,651			4,748
Commercial real estate		92			243			25			100			61			460			701
Home equity		34			33			37			35			65			139			319
Residential real estate		10			1			6			4			6			21			77
Premium finance receivables – property & casualty		1,820			906			890			1,314			1,279			4,930			5,522
Premium finance receivables – life insurance		7			—			—			9			—			16			—
Consumer and other		24			14			23			32			33			93			136
Total recoveries		2,579			2,359			1,486			1,886			2,135			8,310			11,503
Net charge-offs		(14,889	)		(8,118	)		(17,030	)		(5,465	)		(5,079	)		(45,502	)		(20,276	)
Allowance for credit losses at period end	$	427,612		$	399,531		$	387,786		$	376,261		$	357,936		$	427,612		$	357,936

Annualized net charge-offs (recoveries) by category as a percentage of its own respective category’s average:
Commercial		0.14	%		0.04	%		0.16	%		0.07	%		0.08	%		0.10	%		0.08	%
Commercial real estate		0.19			0.05			0.31			0.00			0.02			0.14			0.01
Home equity		(0.04	)		0.23			(0.04	)		(0.04	)		(0.08	)		0.03			0.03
Residential real estate		0.02			0.01			0.00			0.00			0.00			0.01			0.02
Premium finance receivables – property & casualty		0.29			0.29			0.24			0.23			0.16			0.27			0.16
Premium finance receivables – life insurance		(0.00	)		0.00			0.01			0.00			0.00			0.00			0.00
Consumer and other		0.58			0.65			0.45			0.74			(0.16	)		0.60			1.22
Total loans, net of unearned income		0.14	%		0.08	%		0.17	%		0.06	%		0.05	%		0.11			0.06	%

Loans at period end	$	42,131,831		$	41,446,032		$	41,023,408		$	39,565,471		$	39,196,485
Allowance for loan losses as a percentage of loans at period end		0.82	%		0.76	%		0.74	%		0.73	%		0.69	%
Allowance for loan and unfunded lending-related commitment losses as a percentage of loans at period end		1.01			0.96			0.94			0.95			0.91

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)		2023			2023			2023			2023			2022		2023			2022
Provision for loan losses	$	44,023		$	20,717		$	31,516		$	22,520		$	29,110	$	118,776		$	42,721
Provision for unfunded lending-related commitments losses		(1,081	)		(769	)		(2,945	)		550			18,358		(4,245	)		35,458
Provision for held-to-maturity securities losses		(34	)		(25	)		(57	)		(25	)		178		(141	)		410
Provision for credit losses	$	42,908		$	19,923		$	28,514		$	23,045		$	47,646	$	114,390		$	78,589

Allowance for loan losses	$	344,235		$	315,039		$	302,499		$	287,972		$	270,173
Allowance for unfunded lending-related commitments losses		83,030			84,111			84,881			87,826			87,275
Allowance for loan losses and unfunded lending-related commitments losses		427,265			399,150			387,380			375,798			357,448
Allowance for held-to-maturity securities losses		347			381			406			463			488
Allowance for credit losses	$	427,612		$	399,531		$	387,786		$	376,261		$	357,936

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, 2023, September 30, 2023 and June 30, 2023.

	As of Dec 31, 2023						As of Sep 30, 2023						As of Jun 30, 2023
(Dollars in thousands)	Recorded Investment		Calculated Allowance		% of its category’s balance		Recorded Investment		Calculated Allowance		% of its category’s balance		Recorded Investment		Calculated Allowance		% of its category’s balance
Commercial:
Commercial, industrial and other	$	12,832,053	$	169,604	1.32	%	$	12,725,473	$	151,488	1.19	%	$	12,600,471	$	143,142	1.14	%
Commercial real estate:
Construction and development		2,084,041		94,081	4.51			1,893,773		90,622	4.79			1,760,436		86,725	4.93
Non-construction		9,260,123		129,772	1.40			9,052,407		125,096	1.38			8,848,375		128,971	1.46
Home equity		343,976		7,116	2.07			343,258		7,080	2.06			336,974		6,967	2.07
Residential real estate		2,769,666		13,133	0.47			2,707,603		12,659	0.47			2,643,240		12,252	0.46
Premium finance receivables
Property and casualty insurance		6,903,529		12,384	0.18			6,722,747		11,132	0.17			6,762,698		8,347	0.12
Life insurance		7,877,943		685	0.01			7,931,808		688	0.01			8,039,273		699	0.01
Consumer and other		60,500		490	0.81			68,963		385	0.56			31,941		277	0.87
Total loans, net of unearned income	$	42,131,831	$	427,265	1.01	%	$	41,446,032	$	399,150	0.96	%	$	41,023,408	$	387,380	0.94	%

Total core loans⁽¹⁾	$	24,592,729	$	380,847	1.55	%	$	24,088,651	$	363,873	1.51	%	$	23,386,727	$	350,930	1.50	%
Total niche loans⁽¹⁾		17,539,102		46,418	0.26			17,357,381		35,277	0.20			17,636,681		36,450	0.21

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

TABLE 13: LOAN PORTFOLIO AGING

(In thousands)	Dec 31, 2023		Sep 30, 2023		Jun 30, 2023		Mar 31, 2023		Dec 31, 2022
Loan Balances:
Commercial
Nonaccrual	$	38,940	$	43,569	$	40,460	$	47,950	$	35,579
90+ days and still accruing		98		200		573		—		462
60-89 days past due		19,488		22,889		22,808		10,755		21,128
30-59 days past due		85,743		35,681		48,970		95,593		56,696
Current		12,687,784		12,623,134		12,487,660		12,422,687		12,435,299
Total commercial	$	12,832,053	$	12,725,473	$	12,600,471	$	12,576,985	$	12,549,164
Commercial real estate
Nonaccrual	$	35,459	$	17,043	$	18,483	$	11,196	$	6,387
90+ days and still accruing		—		1,092		—		—		—
60-89 days past due		8,515		7,395		1,054		20,539		2,244
30-59 days past due		20,634		60,984		14,218		72,680		30,675
Current		11,279,556		10,859,666		10,575,056		10,134,663		9,911,641
Total commercial real estate	$	11,344,164	$	10,946,180	$	10,608,811	$	10,239,078	$	9,950,947
Home equity
Nonaccrual	$	1,341	$	1,363	$	1,361	$	1,190	$	1,487
90+ days and still accruing		—		—		110		—		—
60-89 days past due		62		219		316		116		—
30-59 days past due		2,263		1,668		601		1,118		2,152
Current		340,310		340,008		334,586		334,592		329,059
Total home equity	$	343,976	$	343,258	$	336,974	$	337,016	$	332,698
Residential real estate
Early buy-out loans guaranteed by U.S. government agencies⁽¹⁾	$	150,583	$	168,973	$	187,848	$	196,152	$	164,788
Nonaccrual		15,391		16,103		13,652		11,333		10,171
90+ days and still accruing		—		—		—		104		—
60-89 days past due		2,325		1,145		7,243		74		4,364
30-59 days past due		22,942		904		872		19,183		9,982
Current		2,578,425		2,520,478		2,433,625		2,278,699		2,183,078
Total residential real estate	$	2,769,666	$	2,707,603	$	2,643,240	$	2,505,545	$	2,372,383
Premium finance receivables – property & casualty
Nonaccrual	$	27,590	$	26,756	$	19,583	$	18,543	$	13,470
90+ days and still accruing		20,135		16,253		12,785		9,215		15,841
60-89 days past due		23,236		16,552		22,670		14,287		14,926
30-59 days past due		50,437		31,919		32,751		32,545		40,557
Current		6,782,131		6,631,267		6,674,909		5,664,290		5,764,665
Total Premium finance receivables – property & casualty	$	6,903,529	$	6,722,747	$	6,762,698	$	5,738,880	$	5,849,459
Premium finance receivables – life insurance
Nonaccrual	$	—	$	—	$	6	$	—	$	—
90+ days and still accruing		—		10,679		1,667		1,066		17,245
60-89 days past due		16,206		41,894		3,729		21,552		5,260
30-59 days past due		45,464		14,972		90,117		52,975		68,725
Current		7,816,273		7,864,263		7,943,754		8,050,209		7,999,768
Total Premium finance receivables – life insurance	$	7,877,943	$	7,931,808	$	8,039,273	$	8,125,802	$	8,090,998
Consumer and other
Nonaccrual	$	22	$	16	$	4	$	6	$	6
90+ days and still accruing		54		27		28		87		49
60-89 days past due		25		196		51		10		18
30-59 days past due		165		519		146		379		224
Current		60,234		68,205		31,712		41,683		50,539
Total consumer and other	$	60,500	$	68,963	$	31,941	$	42,165	$	50,836
Total loans, net of unearned income
Early buy-out loans guaranteed by U.S. government agencies⁽¹⁾	$	150,583	$	168,973	$	187,848	$	196,152	$	164,788
Nonaccrual		118,743		104,850		93,549		90,218		67,100
90+ days and still accruing		20,287		28,251		15,163		10,472		33,597
60-89 days past due		69,857		90,290		57,871		67,333		47,940
30-59 days past due		227,648		146,647		187,675		274,473		209,011
Current		41,544,713		40,907,021		40,481,302		38,926,823		38,674,049
Total loans, net of unearned income	$	42,131,831	$	41,446,032	$	41,023,408	$	39,565,471	$	39,196,485

(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⁾

	Dec 31,			Sep 30,			Jun 30,			Mar 31,			Dec 31,
(Dollars in thousands)		2023			2023			2023			2023			2022
Loans past due greater than 90 days and still accruing:
Commercial	$	98		$	200		$	573		$	—		$	462
Commercial real estate		—			1,092			—			—			—
Home equity		—			—			110			—			—
Residential real estate		—			—			—			104			—
Premium finance receivables – property & casualty		20,135			16,253			12,785			9,215			15,841
Premium finance receivables – life insurance		—			10,679			1,667			1,066			17,245
Consumer and other		54			27			28			87			49
Total loans past due greater than 90 days and still accruing		20,287			28,251			15,163			10,472			33,597
Non-accrual loans:
Commercial		38,940			43,569			40,460			47,950			35,579
Commercial real estate		35,459			17,043			18,483			11,196			6,387
Home equity		1,341			1,363			1,361			1,190			1,487
Residential real estate		15,391			16,103			13,652			11,333			10,171
Premium finance receivables – property & casualty		27,590			26,756			19,583			18,543			13,470
Premium finance receivables – life insurance		—			—			6			—			—
Consumer and other		22			16			4			6			6
Total non-accrual loans		118,743			104,850			93,549			90,218			67,100
Total non-performing loans:
Commercial		39,038			43,769			41,033			47,950			36,041
Commercial real estate		35,459			18,135			18,483			11,196			6,387
Home equity		1,341			1,363			1,471			1,190			1,487
Residential real estate		15,391			16,103			13,652			11,437			10,171
Premium finance receivables – property & casualty		47,725			43,009			32,368			27,758			29,311
Premium finance receivables – life insurance		—			10,679			1,673			1,066			17,245
Consumer and other		76			43			32			93			55
Total non-performing loans	$	139,030		$	133,101		$	108,712		$	100,690		$	100,697
Other real estate owned		13,309			12,928			10,275			8,050			8,589
Other real estate owned – from acquisitions		—			1,132			1,311			1,311			1,311
Total non-performing assets	$	152,339		$	147,161		$	120,298		$	110,051		$	110,597
Total non-performing loans by category as a percent of its own respective category’s period-end balance:
Commercial		0.30	%		0.34	%		0.33	%		0.38	%		0.29	%
Commercial real estate		0.31			0.17			0.17			0.11			0.06
Home equity		0.39			0.40			0.44			0.35			0.45
Residential real estate		0.56			0.59			0.52			0.46			0.43
Premium finance receivables – property & casualty		0.69			0.64			0.48			0.48			0.50
Premium finance receivables – life insurance		—			0.13			0.02			0.01			0.21
Consumer and other		0.13			0.06			0.10			0.22			0.11
Total loans, net of unearned income		0.33	%		0.32	%		0.26	%		0.25	%		0.26	%
Total non-performing assets as a percentage of total assets		0.27	%		0.26	%		0.22	%		0.21	%		0.21	%
Allowance for loan losses and unfunded lending-related commitments losses as a percentage of non-accrual loans		359.82	%		380.69	%		414.09	%		416.54	%		532.71	%

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

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

	Three Months Ended															Years Ended
	Dec 31,			Sep 30,			Jun 30,			Mar 31,			Dec 31,			Dec 31,			Dec 31,
(In thousands)		2023			2023			2023			2023			2022			2023			2022

Balance at beginning of period	$	133,101		$	108,712		$	100,690		$	100,697		$	97,633		$	100,697		$	74,438
Additions from becoming non-performing in the respective period		59,010			18,666			21,246			24,455			10,027			123,377			72,243
Return to performing status		(24,469	)		(1,702	)		(360	)		(480	)		(1,167	)		(27,011	)		(3,050	)
Payments received		(10,000	)		(6,488	)		(12,314	)		(5,261	)		(16,351	)		(34,063	)		(60,936	)
Transfer to OREO and other repossessed assets		(2,623	)		(2,671	)		(2,958	)		—			(3,365	)		(8,252	)		(9,538	)
Charge-offs, net		(9,480	)		(3,011	)		(2,696	)		(1,159	)		(1,363	)		(16,346	)		(6,027	)
Net change for niche loans⁽¹⁾		(6,509	)		19,595			5,104			(17,562	)		15,283			628			33,567
Balance at end of period	$	139,030		$	133,101		$	108,712		$	100,690		$	100,697		$	139,030		$	100,697

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

Other Real Estate Owned

	Three Months Ended
	Dec 31,			Sep 30,			Jun 30,			Mar 31,			Dec 31,
(In thousands)		2023			2023			2023			2023			2022
Balance at beginning of period	$	14,060		$	11,586		$	9,361		$	9,900		$	6,687
Disposals/resolved		(3,416	)		(467	)		(733	)		(435	)		(152	)
Transfers in at fair value, less costs to sell		2,665			2,941			2,958			—			3,365
Fair value adjustments		—			—			—			(104	)		—
Balance at end of period	$	13,309		$	14,060		$	11,586		$	9,361		$	9,900

	Period End
	Dec 31,			Sep 30,			Jun 30,			Mar 31,			Dec 31,
Balance by Property Type:		2023			2023			2023			2023			2022
Residential real estate	$	720		$	441		$	318		$	1,051		$	1,585
Commercial real estate		12,589			13,619			11,268			8,310			8,315
Total	$	13,309		$	14,060		$	11,586		$	9,361		$	9,900

TABLE 15: NON-INTEREST INCOME

	Three Months Ended														Q4 2023 compared to Q3 2023					Q4 2023 compared to Q4 2022
	Dec 31,			Sep 30,			Jun 30,		Mar 31,			Dec 31,			Q4 2023 compared to Q3 2023					Q4 2023 compared to Q4 2022
(Dollars in thousands)		2023			2023			2023		2023			2022		$ Change			% Change		$ Change			% Change
Brokerage	$	5,349		$	4,359		$	4,404	$	4,533		$	4,177		$	990		23	%	$	1,172		28	%
Trust and asset management		27,926			29,170			29,454		25,412			26,550			(1,244	)	(4	)		1,376		5
Total wealth management		33,275			33,529			33,858		29,945			30,727			(254	)	(1	)		2,548		8
Mortgage banking		7,433			27,395			29,981		18,264			17,407			(19,962	)	(73	)		(9,974	)	(57	)
Service charges on deposit accounts		14,522			14,217			13,608		12,903			13,054			305		2			1,468		11
Gains (losses) on investment securities, net		2,484			(2,357	)		0		1,398			(6,745	)		4,841		NM			9,229		NM
Fees from covered call options		4,679			4,215			2,578		10,391			7,956			464		11			(3,277	)	(41	)
Trading (losses) gains, net		(505	)		728			106		813			(306	)		(1,233	)	NM			(199	)	65
Operating lease income, net		14,162			13,863			12,227		13,046			12,384			299		2			1,778		14
Other:
Interest rate swap fees		4,021			2,913			2,711		2,606			2,319			1,108		38			1,702		73
BOLI		1,747			729			1,322		1,351			1,394			1,018		NM			353		25
Administrative services		1,329			1,336			1,319		1,615			1,736			(7	)	(1	)		(407	)	(23	)
Foreign currency remeasurement gains (losses)		1,150			(446	)		543		(188	)		277			1,596		NM			873		NM
Early pay-offs of capital leases		157			461			201		365			131			(304	)	(66	)		26		20
Miscellaneous		16,375			15,895			14,576		15,260			13,505			480		3			2,870		21
Total Other		24,779			20,888			20,672		21,009			19,362			3,891		19			5,417		28
Total Non-Interest Income	$	100,829		$	112,478		$	113,030	$	107,769		$	93,839		$	(11,649	)	(10	)%	$	6,990		7	%

	Years Ended
	Dec 31,		Dec 31,			$			%
(Dollars in thousands)		2023		2022		Change			Change
Brokerage	$	18,645	$	17,668		$	977		6	%
Trust and asset management		111,962		108,946			3,016		3
Total wealth management		130,607		126,614			3,993		3
Mortgage banking		83,073		155,173			(72,100	)	(46	)
Service charges on deposit accounts		55,250		58,574			(3,324	)	(6	)
Gains (losses) on investment securities, net		1,525		(20,427	)		21,952		NM
Fees from covered call options		21,863		14,133			7,730		55
Trading gains, net		1,142		3,752			(2,610	)	(70	)
Operating lease income, net		53,298		55,510			(2,212	)	(4	)
Other:
Interest rate swap fees		12,251		12,185			66		1
BOLI		5,149		806			4,343		NM
Administrative services		5,599		6,713			(1,114	)	(17	)
Foreign currency remeasurement gains		1,059		292			767		NM
Early pay-offs of leases		1,184		694			490		71
Miscellaneous		62,106		47,034			15,072		32
Total Other		87,348		67,724			19,624		29
Total Non-Interest Income	$	434,106	$	461,053		$	(26,947	)	(6	)%

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

TABLE 16: NON-INTEREST EXPENSE

	Three Months Ended												Q4 2023 compared to Q3 2023					Q4 2023 compared to Q4 2022
	Dec 31,			Sep 30,		Jun 30,		Mar 31,			Dec 31,		Q4 2023 compared to Q3 2023					Q4 2023 compared to Q4 2022
(Dollars in thousands)		2023		2023		2023		2023			2022		$ Change			% Change		$ Change			% Change
Salaries and employee benefits:
Salaries	$	111,484		$	111,303	$	107,671	$	108,354		$	100,232	$	181		0	%	$	11,252		11	%
Commissions and incentive compensation		48,974			48,817		44,511		39,799			49,546		157		0			(572	)	(1	)
Benefits		33,513			32,218		32,741		28,628			30,553		1,295		4			2,960		10
Total salaries and employee benefits		193,971			192,338		184,923		176,781			180,331		1,633		1			13,640		8
Software and equipment		27,779			25,951		26,205		24,697			24,699		1,828		7			3,080		12
Operating lease equipment		10,694			12,020		9,816		9,833			10,078		(1,326	)	(11	)		616		6
Occupancy, net		18,102			21,304		19,176		18,486			17,763		(3,202	)	(15	)		339		2
Data processing		8,892			10,773		9,726		9,409			7,927		(1,881	)	(17	)		965		12
Advertising and marketing		17,166			18,169		17,794		11,946			14,279		(1,003	)	(6	)		2,887		20
Professional fees		8,768			8,887		8,940		8,163			9,267		(119	)	(1	)		(499	)	(5	)
Amortization of other acquisition-related intangible assets		1,356			1,408		1,499		1,235			1,436		(52	)	(4	)		(80	)	(6	)
FDIC insurance		43,677			9,748		9,008		8,669			6,775		33,929		NM			36,902		NM
OREO expense, net		(1,559	)		120		118		(207	)		369		(1,679	)	NM			(1,928	)	NM
Other:
Lending expenses, net of deferred origination costs		5,330			4,777		7,890		3,099			4,952		553		12			378		8
Travel and entertainment		5,754			5,449		5,401		4,590			5,681		305		6			73		1
Miscellaneous		22,722			19,111		20,127		22,468			24,279		3,611		19			(1,557	)	(6	)
Total other		33,806			29,337		33,418		30,157			34,912		4,469		15			(1,106	)	(3	)
Total Non-Interest Expense	$	362,652		$	330,055	$	320,623	$	299,169		$	307,836	$	32,597		10	%	$	54,816		18	%

	Years Ended
	Dec 31,			Dec 31,			$			%
(Dollars in thousands)		2023			2022		Change			Change
Salaries and employee benefits:
Salaries	$	438,812		$	382,181		$	56,631		15	%
Commissions and incentive compensation		182,101			197,873			(15,772	)	(8	)
Benefits		127,100			116,053			11,047		10
Total salaries and employee benefits		748,013			696,107			51,906		7
Software and equipment		104,632			95,885			8,747		9
Operating lease equipment		42,363			38,008			4,355		11
Occupancy, net		77,068			70,965			6,103		9
Data processing		38,800			31,209			7,591		24
Advertising and marketing		65,075			59,418			5,657		10
Professional fees		34,758			33,088			1,670		5
Amortization of other acquisition-related intangible assets		5,498			6,116			(618	)	(10	)
FDIC insurance		71,102			28,639			42,463		NM
OREO expense, net		(1,528	)		(140	)		(1,388	)	NM
Other:
Lending expenses, net of deferred origination costs		21,096			20,576			520		3
Travel and entertainment		21,194			16,506			4,688		28
Miscellaneous		84,428			80,894			3,534		4
Total other		126,718			117,976			8,742		7
Total Non-Interest Expense	$	1,312,499		$	1,177,271		$	135,228		11	%

NM – Not meaningful.

TABLE 17: SUPPLEMENTAL NON-GAAP FINANCIAL MEASURES/RATIOS

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

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

	Three Months Ended															Years Ended
	Dec 31,			Sep 30,			Jun 30,			Mar 31,			Dec 31,			Dec 31,			Dec 31,
(Dollars and shares in thousands)		2023			2023			2023			2023			2022			2023			2022
Reconciliation of Non-GAAP Net Interest Margin and Efficiency Ratio:
(A) Interest Income (GAAP)	$	793,848		$	762,400		$	697,176		$	639,690		$	580,745		$	2,893,114		$	1,747,443
Taxable-equivalent adjustment:
– Loans		2,150			1,923			1,882			1,872			1,594			7,827			3,619
– Liquidity Management Assets		575			572			551			551			538			2,249			1,977
– Other Earning Assets		4			1			1			4			1			10			5
(B) Interest Income (non-GAAP)	$	796,577		$	764,896		$	699,610		$	642,117		$	582,878		$	2,903,200		$	1,753,044
(C) Interest Expense (GAAP)		323,874			300,042			249,639			181,695			123,929			1,055,250			252,081
(D) Net Interest Income (GAAP) (A minus C)	$	469,974		$	462,358		$	447,537		$	457,995		$	456,816		$	1,837,864		$	1,495,362
(E) Net Interest Income (non-GAAP) (B minus C)	$	472,703		$	464,854		$	449,971		$	460,422		$	458,949		$	1,847,950		$	1,500,963
Net interest margin (GAAP)		3.62	%		3.60	%		3.64	%		3.81	%		3.71	%		3.66	%		3.15	%
Net interest margin, fully taxable-equivalent (non-GAAP)		3.64			3.62			3.66			3.83			3.73			3.68			3.17
(F) Non-interest income	$	100,829		$	112,478		$	113,030		$	107,769		$	93,839		$	434,106		$	461,053
(G) (Losses) gains on investment securities, net		2,484			(2,357	)		0			1,398			(6,745	)		1,525			(20,427	)
(H) Non-interest expense		362,652			330,055			320,623			299,169			307,836			1,312,499			1,177,271
Efficiency ratio (H/(D+F-G))		63.81	%		57.18	%		57.20	%		53.01	%		55.23	%		57.81	%		59.55	%
Efficiency ratio (non-GAAP) (H/(E+F-G))		63.51			56.94			56.95			52.78			55.02			57.55			59.38
	Three Months Ended															Year Ended
	Dec 31,			Sep 30,			Jun 30,			Mar 31,			Dec 31,			Dec 31,			Dec 31,
(Dollars and shares in thousands)		2023			2023			2023			2023			2022			2023			2022
Reconciliation of Non-GAAP Tangible Common Equity Ratio:
Total shareholders’ equity (GAAP)	$	5,399,526		$	5,015,613		$	5,041,912		$	5,015,506		$	4,796,838
Less: Non-convertible preferred stock (GAAP)		(412,500	)		(412,500	)		(412,500	)		(412,500	)		(412,500	)
Less: Intangible assets (GAAP)		(679,561	)		(680,353	)		(682,327	)		(674,538	)		(675,710	)
(I) Total tangible common shareholders’ equity (non-GAAP)	$	4,307,465		$	3,922,760		$	3,947,085		$	3,928,468		$	3,708,628
(J) Total assets (GAAP)	$	56,259,934		$	55,555,246		$	54,286,176		$	52,873,511		$	52,949,649
Less: Intangible assets (GAAP)		(679,561	)		(680,353	)		(682,327	)		(674,538	)		(675,710	)
(K) Total tangible assets (non-GAAP)	$	55,580,373		$	54,874,893		$	53,603,849		$	52,198,973		$	52,273,939
Common equity to assets ratio (GAAP) (L/J)		8.9	%		8.3	%		8.5	%		8.7	%		8.3	%
Tangible common equity ratio (non-GAAP) (I/K)		7.7			7.1			7.4			7.5			7.1

Reconciliation of Non-GAAP Tangible Book Value per Common Share:
Total shareholders’ equity	$	5,399,526		$	5,015,613		$	5,041,912		$	5,015,506		$	4,796,838
Less: Preferred stock		(412,500	)		(412,500	)		(412,500	)		(412,500	)		(412,500	)
(L) Total common equity	$	4,987,026		$	4,603,113		$	4,629,412		$	4,603,006		$	4,384,338
(M) Actual common shares outstanding		61,244			61,222			61,198			61,176			60,794
Book value per common share (L/M)	$	81.43		$	75.19		$	75.65		$	75.24		$	72.12
Tangible book value per common share (non-GAAP) (I/M)		70.33			64.07			64.50			64.22			61.00

Reconciliation of Non-GAAP Return on Average Tangible Common Equity:
(N) Net income applicable to common shares	$	116,489		$	157,207		$	147,759		$	173,207		$	137,826		$	594,662		$	481,718
Add: Intangible asset amortization		1,356			1,408			1,499			1,235			1,436			5,498			6,116
Less: Tax effect of intangible asset amortization		(343	)		(380	)		(402	)		(321	)		(370	)		(1,446	)		(1,664	)
After-tax intangible asset amortization	$	1,013		$	1,028		$	1,097		$	914		$	1,066		$	4,052		$	4,452
(O) Tangible net income applicable to common shares (non-GAAP)	$	117,502		$	158,235		$	148,856		$	174,121		$	138,892		$	598,714		$	486,170
Total average shareholders’ equity	$	5,066,196		$	5,083,883		$	5,044,718		$	4,895,271		$	4,710,856		$	5,023,153		$	4,634,224
Less: Average preferred stock		(412,500	)		(412,500	)		(412,500	)		(412,500	)		(412,500	)		(412,500	)		(412,500	)
(P) Total average common shareholders’ equity	$	4,653,696		$	4,671,383		$	4,632,218		$	4,482,771		$	4,298,356		$	4,610,653		$	4,221,724
Less: Average intangible assets		(679,812	)		(681,520	)		(682,561	)		(675,247	)		(676,371	)		(679,802	)		(679,735	)
(Q) Total average tangible common shareholders’ equity (non-GAAP)	$	3,973,884		$	3,989,863		$	3,949,657		$	3,807,524		$	3,621,985		$	3,930,851		$	3,541,989
Return on average common equity, annualized (N/P)		9.93	%		13.35	%		12.79	%		15.67	%		12.72	%		12.90	%		11.41	%
Return on average tangible common equity, annualized (non-GAAP) (O/Q)		11.73			15.73			15.12			18.55			15.21			15.23			13.73

Reconciliation of Non-GAAP Pre-Tax, Pre-Provision Income:
Income before taxes	$	165,243		$	224,858		$	211,430		$	243,550		$	195,173		$	845,081		$	700,555
Add: Provision for credit losses		42,908			19,923			28,514			23,045			47,646			114,390			78,589
Pre-tax income, excluding provision for credit losses (non-GAAP)	$	208,151		$	244,781		$	239,944		$	266,595		$	242,819		$	959,471		$	779,144

	Dec 31,			Dec 31,			Dec 31,			Dec 31,			Dec 31,			Dec 31,			Dec 31,			Dec 31,			Dec 31,
		2021			2020			2019			2018			2017			2016			2015			2014			2013
Reconciliation of Non-GAAP Tangible Book Value per Common Share:
Total shareholders’ equity	$	4,498,688		$	4,115,995		$	3,691,250		$	3,267,570		$	2,976,939		$	2,695,617		$	2,352,274		$	2,069,822		$	1,900,589
Less: Non-convertible preferred stock (GAAP)		(412,500	)		(412,500	)		(125,000	)		(125,000	)		(125,000	)		(251,257	)		(251,287	)		(126,467	)		(126,477	)
(R) Less: Intangible assets (GAAP)		(683,456	)		(681,747	)		(692,277	)		(622,565	)		(519,505	)		(520,438	)		(495,970	)		(424,445	)		(393,760	)
(I) Total tangible common shareholders’ equity (non-GAAP)	$	3,402,732		$	3,021,748		$	2,873,973		$	2,520,005		$	2,332,434		$	1,923,922		$	1,605,017		$	1,518,910		$	1,380,352
(M) Common shares used for book value calculation		57,054			56,770			57,822			56,408			55,965			51,881			48,383			46,805			46,117
Book value per common share ((I-R)/M)	$	71.62		$	65.24		$	61.68		$	55.71		$	50.96		$	47.11		$	43.42		$	41.52		$	38.47
Tangible book value per common share (non-GAAP) (I/M)		59.64			53.23			49.70			44.67			41.68			37.08			33.17			32.45			29.93

WINTRUST SUBSIDIARIES AND LOCATIONS

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

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

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

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

FORWARD-LOOKING STATEMENTS

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

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

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

CONFERENCE CALL, WEBCAST AND REPLAY

The Company will hold a conference call on Thursday, January 18, 2024 at 10:00 a.m. (CST) regarding fourth quarter and full year 2023 earnings results. Individuals interested in participating in the call by addressing questions to management should register for the call to receive the dial-in numbers and unique PIN at the Conference Call Link included within the Company’s press release dated January 2, 2024 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 2023 earnings press release will also be available on the home page of the Company’s website at https://www.wintrust.com and at the Investor Relations, Investor News and Events, Press Releases link on its website.

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

Wintrust Financial Corporation Reports Record Full Year Net Income

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