ウィントラストファイナンシャルの適時開示・決算・その他

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 8-K

Current Report

Pursuant to Section 13 or 15(d) of The

Securities Exchange Act of 1934

Date of Report (Date of earliest event reported): July 20, 2022

WINTRUST FINANCIAL CORPORATION

(Exact name of registrant as specified in its charter)

Illinois

001-35077

36-3873352

(State or other jurisdiction of Incorporation)

(Commission File Number)

(I.R.S. Employer
Identification No.)

9700 W. Higgins Road, Suite 800

Rosemont

Illinois

60018

(Address of principal executive offices)

(Zip Code)

Registrant’s telephone number, including area code (847) 939-9000

Not Applicable

(Former name or former address, if changed since last year)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:


☐			Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)


☐			Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)


☐			Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))


☐			Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))


Title of Each Class	Ticker Symbol	Name of Each Exchange on Which Registered
Common Stock, no par value	WTFC	The NASDAQ Global Select Market
Fixed-to-Floating Rate Non-Cumulative Perpetual Preferred Stock, Series D, no par value	WTFCM	The NASDAQ Global Select Market
Depositary Shares, Each Representing a 1/1,000th Interest in a Share of	WTFCP	The NASDAQ Global Select Market
6.875% Fixed-Rate Reset Non-Cumulative Perpetual Preferred Stock, Series E, no par value

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

Emerging growth company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Item 2.02. Results of Operations and Financial Condition

The information in this Current Report is being furnished and shall not be deemed “filed” for the purposes of Section 18 of the Securities Exchange Act of 1934, as amended, or otherwise subject to the liabilities of that Section. The information in this Current Report shall not be incorporated by reference into any registration statement or other document pursuant to the Securities Act of 1933, as amended.

On July 20, 2022, Wintrust Financial Corporation (the “Company”) announced earnings for the second quarter of 2022 and posted on its website the Second Quarter 2022 Earnings Release Presentation. Copies of the press release relating to the Company’s earnings results and the related presentation are attached hereto as Exhibit 99.1 and Exhibit 99.2, respectively. Certain supplemental information relating to non-GAAP financial measures reported in the attached press release and presentation is included on pages 35 through 37 of Exhibit 99.1 and pages 24 through 25 of Exhibit 99.2.

Item 9.01. Financial Statements and Exhibits

(d) Exhibits


Exhibit
99.1			Second Quarter 2022 Earnings Release dated July 20, 2022
99.2			Second Quarter 2022 Earnings Release Presentation dated July 20, 2022

Signature

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.



						WINTRUST FINANCIAL CORPORATION (Registrant)

			By:			/s/ David L. Stoehr
						David L. Stoehr Executive Vice President and Chief Financial Officer

Date: July 20, 2022

INDEX TO EXHIBITS



Exhibit
99.1			Second Quarter 2022 Earnings Release dated July 20, 2022
99.2			Second Quarter 2022 Earnings Release Presentation dated July 20, 2022

EX-99.1 2 q22022exhibit991.htm EX-99.1 Document

Exhibit 99.1

Wintrust Financial Corporation

9700 W. Higgins Road, Suite 800, Rosemont, Illinois 60018

News Release



FOR IMMEDIATE RELEASE						July 20, 2022

FOR MORE INFORMATION CONTACT:

Edward J. Wehmer, Founder & Chief Executive Officer

David A. Dykstra, Vice Chairman & Chief Operating Officer

(847) 939-9000

Web site address: www.wintrust.com

Wintrust Financial Corporation Reports Second Quarter 2022 Results

ROSEMONT, ILLINOIS – Wintrust Financial Corporation (“Wintrust”, “the Company”, “we” or “our”) (Nasdaq: WTFC) announced net income of $94.5 million or $1.49 per diluted common share for the second quarter of 2022, a decrease in diluted earnings per common share of 28% compared to the first quarter of 2022. The Company recorded net income of $221.9 million or $3.56 per diluted common share for the first six months of 2022 compared to net income of $258.3 million or $4.24 per diluted common share for the same period of 2021. Pre-tax, pre-provision income (non-GAAP) for the first six months of 2022 totaled $329.9 million up 14% from $290.4 million in the first six months of 2021.

Edward J. Wehmer, Founder and Chief Executive Officer, commented, “I am pleased with the second quarter results which exhibited strong earnings momentum and core fundamentals. The second quarter is a turning point for Wintrust as our net interest income and margin expanded meaningfully and remain poised for future growth. Additionally, the Company experienced exceptional, diversified growth in our loan portfolio while maintaining historically good credit metrics."

Highlights of the Second Quarter of 2022:

Comparative information to the first quarter of 2022

•Total loans, excluding Paycheck Protection Program (“PPP”) loans, increased by $1.9 billion, or 22% on an annualized basis. In addition, total loans as of June 30, 2022 were $1.2 billion higher than average total loans in the second quarter of 2022 which is expected to benefit future quarters.

◦Core loans increased by $910 million and niche loans increased by $1.0 billion.

◦PPP loans declined by $172 million in the second quarter of 2022 primarily as a result of processing forgiveness payments.

•Total assets increased by $719 million totaling $51.0 billion as of June 30, 2022 and total deposits increased by $374 million.

•Net interest income increased by $38.5 million due to improvement in net interest margin.

◦Net interest margin increased by 32 basis points primarily due to increasing loan yields and the deployment of liquidity to fund loan growth.

•Recorded a provision for credit losses of $20.4 million in the second quarter of 2022 primarily related to loan growth and $9.5 million of net charge-offs or 11 basis points on an annualized basis as compared to a provision for credit losses of $4.1 million in the first quarter of 2022.

•The allowance for credit losses on our core loan portfolio is approximately 1.31% of the outstanding balance as of June 30, 2022 unchanged from March 31, 2022. See Table 12 for more information.

•Non-performing loans remained historically low but increased to 0.20% of total loans, as of June 30, 2022, up from a record low of 0.16% as of March 31, 2022.

•Mortgage banking revenue decreased to $33.3 million for the second quarter of 2022 as compared to $77.2 million in the first quarter of 2022.

◦The Company recorded a net benefit of $445,000 related to essentially offsetting changes in the value of two mortgage assets in the second quarter of 2022. This consisted of a $9.1 million increase in the value of mortgage servicing rights (“MSR”) related to changes in fair value model assumptions and a negative $8.7 million valuation related adjustment on the Company’s portfolio of early buy-out exercised loans guaranteed by U.S. government agencies which are held at fair value.

The change in value recorded in the first quarter of 2022 related to these two mortgage assets was a $43.4 million increase in value.

•Net losses on investment securities totaled $7.8 million in the second quarter of 2022 related to changes in the value of equity securities as compared to net losses of $2.8 million in the first quarter of 2022.

•Recorded $2.5 million of losses in other non-interest income related to the sale of a property no longer considered for future expansion and the anticipated sale of a former data processing facility.

•Completed a common stock offering of 3,450,000 shares, generating proceeds, net of estimated issuance costs, of $285.7 million.

•Tangible book value per common share (non-GAAP) increased to $59.87 as of June 30, 2022 as compared to $59.34 as of March 31, 2022. See Table 18 for reconciliation of non-GAAP measures.

Mr. Wehmer continued, "The Company experienced robust loan growth as loans, excluding PPP loans, increased by $1.9 billion or 22% on an annualized basis in the second quarter of 2022. We continue to pick up new market share and grow organically as all of our material loan portfolios exhibited good growth in the second quarter of 2022. We remain prudent in our review of credit prospects ensuring our loan growth stays within our conservative credit standards. The loan growth experienced in the second quarter of 2022 provides strong momentum for future quarters as total loans as of June 30, 2022 were $1.2 billion higher than average total loans in the second quarter of 2022. Our loans to deposits ratio ended the quarter at 87.0% and we believe that we have sufficient liquidity to meet customer loan demand."

Mr. Wehmer commented, "Net interest income increased by $38.5 million in the second quarter of 2022 primarily due to improvement in net interest margin. Net interest margin increased by 32 basis points as the repricing of earning assets has significantly outpaced deposit rate changes. Additionally, asset mix improved as excess liquidity was deployed to fund loan growth. We believe, subject to a material change in the consensus projection of interest rates as of this release date, that our net interest margin will continue to expand in the third and fourth quarters of 2022 and could approach 3.50% by the end of 2022.”

Mr. Wehmer noted, “We recorded mortgage banking revenue of $33.3 million in the second quarter of 2022 as compared to $77.2 million in the first quarter of 2022. Loan volumes originated for sale in the second quarter of 2022 were $821 million, down from $896 million in the first quarter of 2022. However, production margin increased to 2.21% in the second quarter of 2022 as compared to 1.67% in the first quarter of 2022. In the second quarter of 2022, the increase in the value of mortgage servicing rights related to changes in fair value model assumptions was essentially offset by valuation related adjustments on the Company’s portfolio of early buy-out exercised loans guaranteed by U.S. government agencies which we expect will serve as a partial economic hedge of the mortgage servicing rights in future periods. By comparison, there was a $43.4 million benefit recognized in the first quarter of 2022 related to the change in fair value of mortgage servicing rights. We are focused on expanding our market share of purchase originations and finding efficiencies in our delivery channels to reduce costs in light of current market conditions. Based on limited inventory and elevated mortgage rates, we expect that mortgage originations in the third quarter of 2022 will decline relative to the second quarter of 2022. However, the impact of such decline on earnings is expected to be small relative to the anticipated growth in net interest income.”

Commenting on credit quality, Mr. Wehmer stated, "While uncertain economic conditions may persist in the coming quarters, Wintrust is confident in our ability to navigate such conditions especially given our current credit quality metrics. Non-performing loans comprise only 0.20% of total loans, as of June 30, 2022. The Company recorded a provision for credit losses of $20.4 million in the second quarter of 2022, in part related to $9.5 million of net charge-offs and strong loan growth recorded in the quarter. The allowance for credit losses on our core loan portfolio as of June 30, 2022 is approximately 1.31% of the outstanding balance. We believe that the Company’s reserves remain appropriate and we remain diligent in our review of credit."

Mr. Wehmer concluded, “Our second quarter of 2022 results continued to demonstrate the multi-faceted nature of our business model which we believe uniquely positions us to be successful. We expect to leverage our differentiated, diversified loan portfolio to outperform peers with respect to loan growth which should allow us to continue to expand net interest income. We are focused on taking advantage of market opportunities to prudently deploy excess liquidity into earning assets including core and niche loans and investment securities while maintaining an interest rate sensitive asset portfolio. We are opportunistically evaluating the acquisition market which has been active for both banks and business lines of various sizes. Of course, we remain diligent in our consideration of acquisition targets and intend to be prudent in our decision making, always seeking to minimize dilution.”

The graphs below illustrate certain financial highlights of the second quarter of 2022 as well as historical financial performance. See “Supplemental Non-GAAP Financial Measures/Ratios” at Table 18 for additional information with respect to non-GAAP financial measures/ratios, including the reconciliations to the corresponding GAAP financial measures/ratios.

*Total Interest-Bearing Deposits with Banks, Securities Purchased under Resale Agreements and Cash Equivalents Total loans, excluding PPP loans, increased by $1.9 billion as core loans increased by $910 million and niche loans increased by $1.0 billion.

SUMMARY OF RESULTS:

BALANCE SHEET

See Table 1 for more information. As of June 30, 2022, virtually all of the PPP loan balances were forgiven with only $82 million remaining on balance sheet.

Total liabilities increased $483 million in the second quarter of 2022 resulting primarily from a $374 million increase in total deposits. The increase in deposits was due to a $267 million increase in interest-bearing deposits and $107 million increase in non-interest-bearing deposits. The Company's loans to deposits ratio ended the quarter at 87.0%. Management believes in substantially funding the Company's balance sheet with core deposits and utilizes brokered or wholesale funding sources on a limited basis to manage its liquidity position as well as for interest rate risk management purposes.

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

NET INTEREST INCOME

For the second quarter of 2022, net interest income totaled $337.8 million, an increase of $38.5 million as compared to the first quarter of 2022. The $38.5 million increase in net interest income in the second quarter of 2022 compared to the first quarter of 2022 was primarily due to improvement in net interest margin. The Company recognized $4.5 million of PPP fee accretion in the second quarter of 2022 as compared to $6.5 million in the first quarter of 2022. As of June 30, 2022, the Company had approximately $2.1 million of net PPP loan fees that have yet to be recognized in income.

Net interest margin was 2.92% (2.93% on a fully taxable-equivalent basis, non-GAAP) during the second quarter of 2022 compared to 2.60% (2.61% on a fully taxable-equivalent basis, non-GAAP) during the first quarter of 2022. The net interest margin increase as compared to the first quarter of 2022 was due to a 36 basis point increase in yield on earning assets and a three basis point increase in net free funds contribution. These improvements were partially offset by a seven basis point increase in the rate paid on interest-bearing liabilities. The 36 basis point increase in the yield on earning assets in the second quarter of 2022 as compared to the first quarter of 2022 was primarily due to a 26 basis point improvement on loan yields and a higher liquidity management asset yield as the Company earned higher yields on interest-bearing deposits with banks. The seven basis point increase in the rate paid on interest-bearing liabilities in the second quarter of 2022 as compared to the first quarter of 2022 is primarily due to a six basis point increase in the rate paid on interest-bearing deposits primarily related to the increasing rate environment.

Wintrust remains in an asset-sensitive interest rate position. Based on modeled contractual cash flows, including prepayment assumptions, approximately 80% of our current loan balances are projected to reprice or mature in the next 12 months.

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

ASSET QUALITY

The allowance for credit losses totaled $312.2 million as of June 30, 2022, an increase of $10.9 million as compared to $301.3 million as of March 31, 2022. A provision for credit losses totaling $20.4 million was recorded for the second quarter of 2022 as compared to $4.1 million recorded in the first quarter of 2022. For more information regarding the provision for credit losses, see Table 11 in this report.

Management believes the allowance for credit losses is appropriate to account for expected credit losses. The Current Expected Credit Losses (“CECL”) accounting standard requires the Company to estimate expected credit losses over the life of the Company’s financial assets as of the reporting date. There can be no assurances, however, that future losses will not significantly exceed the amounts provided for, thereby affecting future results of operations. A summary of the allowance for credit losses calculated for the loan components in each portfolio as of June 30, 2022, March 31, 2022, and December 31, 2021 is shown on Table 12 of this report.

Net charge-offs totaled $9.5 million in the second quarter of 2022, as compared to $2.5 million of net charge-offs in the first quarter of 2022. Net charge-offs as a percentage of average total loans were reported as 11 basis points in the second quarter of 2022 on an annualized basis compared to three basis points on an annualized basis in the first quarter of 2022. For more information regarding net charge-offs, see Table 10 in this report.

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

The ratio of non-performing assets to total assets was 0.16% as of June 30, 2022, compared to 0.13% at March 31, 2022. Non-performing assets totaled $79.2 million at June 30, 2022, compared to $63.5 million at March 31, 2022. Non-performing loans totaled $72.4 million, or 0.20% of total loans, at June 30, 2022 compared to $57.3 million, or 0.16% of total loans, at March 31, 2022. Other real estate owned (“OREO”) totaled $6.8 million at June 30, 2022, an increase of $0.6 million compared to $6.2 million at March 31, 2022. Management is pursuing the resolution of all non-performing assets. At this time, management believes OREO is appropriately valued at the lower of carrying value or fair value less estimated costs to sell. For more information regarding non-performing assets, see Table 14 in this report.

NON-INTEREST INCOME

Wealth management revenue remained relatively unchanged at $31.4 million for both the second quarter of 2022 and first quarter of 2022. 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 $43.9 million in the second quarter of 2022 as compared to the first quarter of 2022. The Company recorded a net benefit of $445,000 related to essentially offsetting changes in the value of two mortgage assets in the second quarter of 2022. This consisted of a $9.1 million increase in the value of mortgage servicing rights related to changes in fair value model assumptions and a negative $8.7 million valuation related adjustment on the Company’s portfolio of early buy-out exercised loans guaranteed by U.S. government agencies which are held at fair value. Whereas, the change in value recorded in the first quarter of 2022 related to these two mortgage assets was a $43.4 million increase in value. Production revenue increased by $2.9 million in the second quarter of 2022 as compared to the first quarter of 2022 as production margin rebounded, increasing to 2.21% in the second quarter of 2022 as compared to 1.67% in the first quarter of 2022. Loans originated for sale were $821 million in the second quarter of 2022, a decrease of $75 million as compared to the first quarter of 2022. The percentage of origination volume from refinancing activities was 22% in the second quarter of 2022 as compared to 47% in the first quarter of 2022. Mortgage banking revenue includes revenue from activities related to originating, selling and servicing residential real estate loans for the secondary market.

During the second quarter of 2022, the fair value of the mortgage servicing rights portfolio increased primarily due to the capitalization of $11.2 million and fair value adjustment increase of $9.1 million. These increases were partially offset by a reduction in value of $6.8 million due to payoffs and paydowns of the existing portfolio.

The Company recorded $1.1 million of fees from covered call options in the second quarter of 2022 as compared to $3.7 million in the first quarter of 2022. The Company has typically written call options with terms of less than three months against certain U.S. Treasury and agency securities held in its portfolio for liquidity and other purposes. Management has entered into these transactions with the goal of economically hedging security positions and enhancing its overall return on its investment portfolio by using fees generated from these options to compensate for net interest margin compression. These option transactions are designed to mitigate overall interest rate risk and do not qualify as hedges pursuant to accounting guidance.

Trading gains totaled $176,000 in the second quarter of 2022 as compared to a gain of $3.9 million recognized in the first quarter of 2022. Trading gains in the first quarter of 2022 related primarily to a favorable market value adjustment on an interest rate cap derivative which was held as an economic hedge for potentially rising interest rates.

The Company recognized net losses on investment securities of $7.8 million in the second quarter of 2022 as compared to net losses of $2.8 million recognized in the first quarter of 2022.

Other non-interest income decreased $4.6 million in the second quarter of 2022 as compared to the first quarter of 2022 primarily due to $2.5 million of losses relating to the sale of a property no longer considered for future expansion and the anticipated sale of a former data processing facility. Other declines in the second quarter of 2022 as compared to the first quarter of 2022 include lower interest rate swap fees, market losses on BOLI investments related to non-qualified deferred compensation accounts recorded in BOLI income and less partnership investment income.

For more information regarding non-interest income, see Tables 15 and 16 in this report.

NON-INTEREST EXPENSE

Salaries and employee benefits expense decreased by $5.0 million in the second quarter of 2022 as compared to the first quarter of 2022. The $5.0 million decrease is primarily related to decreased incentive compensation expense.

Advertising and marketing expenses in the second quarter of 2022 increased by $4.7 million as compared to the first quarter of 2022 primarily related to seasonal media advertising and sponsorship costs. Marketing costs are incurred to promote the Company's brand, commercial banking capabilities and the Company's various products, to attract loans and deposits and to announce new branch openings as well as the expansion of the Company's non-bank businesses. The level of marketing expenditures depends on the timing of sponsorship programs utilized which are determined based on the market area, targeted audience, competition and various other factors.

Miscellaneous expense in the second quarter of 2022 increased by $5.2 million as compared to the first quarter of 2022. 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 17 in this report.

INCOME TAXES

The Company recorded income tax expense of $37.1 million in the second quarter of 2022 compared to $46.3 million in the first quarter of 2022. The effective tax rates were 28.21% in the second quarter of 2022 compared to 26.65% in the first quarter of 2022. The effective tax rates were partially impacted by tax effects related to share-based compensation, which fluctuate based on the Company’s stock price and timing of employee stock option exercises and vesting of other share-based awards. The Company recorded excess tax benefits of $81,000 in the second quarter of 2022, compared to excess tax benefits of $2.2 million in the first quarter of 2022 related to share-based compensation.

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

Mortgage banking revenue was $33.3 million for the second quarter of 2022, a decrease of $43.9 million as compared to the first quarter of 2022. Service charges on deposit accounts totaled $15.9 million in the second quarter of 2022, an increase of $605,000 as compared to the first quarter of 2022 primarily due to higher fees associated with commercial account activity. The Company’s gross commercial and commercial real estate loan pipelines remained robust as of June 30, 2022 indicating momentum for continued loan growth in the third quarter of 2022.

Specialty Finance

Through its specialty finance unit, the Company offers financing of insurance premiums for businesses and individuals, equipment financing through structured loans and lease products to customers in a variety of industries, accounts receivable financing and value-added, out-sourced administrative services and other services. Originations within the insurance premium financing receivables portfolio were $3.9 billion during the second quarter of 2022 and average balances increased by $531.9 million as compared to the first quarter of 2022. The Company’s leasing portfolio balance increased in the second quarter of 2022, with its portfolio of assets, including capital leases, loans and equipment on operating leases, totaling $2.6 billion as of June 30, 2022 as compared to $2.4 billion as of March 31, 2022. Revenues from the Company’s out-sourced administrative services business were $1.6 million in the second quarter of 2022, a decrease of $262,000 from the first quarter of 2022.

Wealth Management

Through four separate subsidiaries within its wealth management unit, the Company offers a full range of wealth management services, including trust and investment services, tax-deferred like-kind exchange services, asset management, securities brokerage services and 401(k) and retirement plan services. Wealth management revenue totaled $31.4 million in the second quarter of 2022, relatively unchanged compared to the first quarter of 2022. At June 30, 2022, the Company’s wealth management subsidiaries had approximately $32.9 billion of assets under administration, which included $6.8 billion of assets owned by the Company and its subsidiary banks, representing a $2.9 billion decrease from the $35.8 billion of assets under administration at March 31, 2022. The decrease in assets under administration experienced in the second quarter of 2022 as compared to the first quarter of 2022 is primarily due to reduced equity and fixed income asset values.

ITEMS IMPACTING COMPARATIVE FINANCIAL RESULTS

Common Stock Offering

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

Insurance Agency Loan Portfolio

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

WINTRUST FINANCIAL CORPORATION

Key Operating Measures

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


										% or(1) basis point (bp) change from 1st Quarter 2022		% or basis point (bp) change from 2nd Quarter 2021
	Three Months Ended
(Dollars in thousands, except per share data)	Jun 30, 2022			Mar 31, 2022			Jun 30, 2021
Net income	$	94,513		$	127,391		$	105,109		(26)	%	(10)	%
Pre-tax income, excluding provision for credit losses (non-GAAP) (2)	152,078			177,786			128,851			(14)		18

Net income per common share – diluted	1.49			2.07			1.70			(28)		(12)
Cash dividends declared per common share	0.34			0.34			0.31			—		10
Net revenue (3)	440,746			462,084			408,963			(5)		8
Net interest income	337,804			299,294			279,590			13		21
Net interest margin	2.92		%	2.60		%	2.62		%	32	bps	30	bps
Net interest margin – fully taxable-equivalent (non-GAAP) (2)	2.93			2.61			2.63			32		30
Net overhead ratio (4)	1.51			1.00			1.32			51		19

Return on average assets	0.77			1.04			0.92			(27)		(15)
Return on average common equity	8.53			11.94			10.24			(341)		(171)
Return on average tangible common equity (non-GAAP) (2)	10.36			14.48			12.62			(412)		(226)
At end of period
Total assets	$	50,969,332		$	50,250,661		$	46,738,450		6	%	9	%
Total loans (5)	37,053,103			35,280,547			32,911,187			20		13

Total deposits	42,593,326			42,219,322			38,804,616			4		10
Total shareholders’ equity	4,727,623			4,492,256			4,339,011			21		9

(1)Period-end balance sheet percentage changes are annualized.

(2)See “Supplemental Non-GAAP Financial Measures/Ratios” at Table 18 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															Six Months Ended
(Dollars in thousands, except per share data)	Jun 30, 2022			Mar 31, 2022			Dec 31, 2021			Sep 30, 2021			Jun 30, 2021			Jun 30, 2022			Jun 30, 2021
Selected Financial Condition Data (at end of period):
Total assets	$	50,969,332		$	50,250,661		$	50,142,143		$	47,832,271		$	46,738,450
Total loans (1)	37,053,103			35,280,547			34,789,104			33,264,043			32,911,187
Total deposits	42,593,326			42,219,322			42,095,585			39,952,558			38,804,616

Total shareholders’ equity	4,727,623			4,492,256			4,498,688			4,410,317			4,339,011
Selected Statements of Income Data:
Net interest income	$	337,804		$	299,294		$	295,976		$	287,496		$	279,590		$	637,098		$	541,485
Net revenue (2)	440,746			462,084			429,743			423,970			408,963			902,830			857,364
Net income	94,513			127,391			98,757			109,137			105,109			221,904			258,257
Pre-tax income, excluding provision for credit losses (non-GAAP) (3)	152,078			177,786			146,344			141,826			128,851			329,864			290,363

Net income per common share – Basic	1.51			2.11			1.61			1.79			1.72			3.61			4.29
Net income per common share – Diluted	1.49			2.07			1.58			1.77			1.70			3.56			4.24
Cash dividends declared per common share	0.34			0.34			0.31			0.31			0.31			0.68			0.62
Selected Financial Ratios and Other Data:
Performance Ratios:
Net interest margin	2.92		%	2.60		%	2.54		%	2.58		%	2.62		%	2.76		%	2.58		%
Net interest margin – fully taxable-equivalent (non-GAAP) (3)	2.93			2.61			2.55			2.59			2.63			2.77			2.59
Non-interest income to average assets	0.84			1.33			1.08			1.15			1.13			1.08			1.40
Non-interest expense to average assets	2.35			2.33			2.29			2.37			2.45			2.34			2.51
Net overhead ratio (4)	1.51			1.00			1.21			1.22			1.32			1.25			1.11

Return on average assets	0.77			1.04			0.80			0.92			0.92			0.91			1.15
Return on average common equity	8.53			11.94			9.05			10.31			10.24			10.22			12.97
Return on average tangible common equity (non-GAAP) (3)	10.36			14.48			11.04			12.62			12.62			12.40			15.99
Average total assets	$	49,353,426		$	49,501,844		$	49,118,777		$	47,192,510		$	45,946,751		$	49,427,225		$	45,470,389
Average total shareholders’ equity	4,526,110			4,500,460			4,433,953			4,343,915			4,256,778			4,513,356			4,211,088
Average loans to average deposits ratio	86.8		%	83.8		%	81.7		%	83.8		%	86.7		%	85.3		%	86.9		%
Period-end loans to deposits ratio	87.0			83.6			82.6			83.3			84.8
Common Share Data at end of period:
Market price per common share	$	80.15		$	92.93		$	90.82		$	80.37		$	75.63
Book value per common share	71.06			71.26			71.62			70.19			68.81
Tangible book value per common share (non-GAAP) (3)	59.87			59.34			59.64			58.32			56.92
Common shares outstanding	60,721,889			57,253,214			57,054,091			56,956,026			57,066,677
Other Data at end of period:
Tier 1 leverage ratio (5)	8.8		%	8.1		%	8.0		%	8.1		%	8.2		%
Risk-based capital ratios:
Tier 1 capital ratio (5)	9.9			9.6			9.6			9.9			10.1
Common equity tier 1 capital ratio (5)	9.0			8.6			8.6			8.9			9.0
Total capital ratio (5)	11.8			11.6			11.6			12.1			12.4


Allowance for credit losses (6)	$	312,192		$	301,327		$	299,731		$	296,138		$	304,121

Allowance for loan and unfunded lending-related commitment losses to total loans	0.84		%	0.85		%	0.86		%	0.89		%	0.92		%

Number of:
Bank subsidiaries	15			15			15			15			15
Banking offices	173			174			173			172			172

(1)Excludes mortgage loans held-for-sale.

(2)Net revenue is net interest income and non-interest income.

(3)See “Supplemental Non-GAAP Financial Measures/Ratios” at Table 18 for additional information on this performance measure/ratio.

(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)
	Jun 30,		Mar 31,		Dec 31,		Sep 30,		Jun 30,
(In thousands)	2022		2022		2021		2021		2021
Assets
Cash and due from banks	$	498,891	$	462,516	$	411,150	$	462,244	$	434,957
Federal funds sold and securities purchased under resale agreements	475,056		700,056		700,055		55		52
Interest-bearing deposits with banks	3,266,541		4,013,597		5,372,603		5,232,315		4,707,415
Available-for-sale securities, at fair value	2,970,121		2,998,898		2,327,793		2,373,478		2,188,608
Held-to-maturity securities, at amortized cost	3,413,469		3,435,729		2,942,285		2,736,722		2,498,232
Trading account securities	1,010		852		1,061		1,103		2,667
Equity securities with readily determinable fair value	93,295		92,689		90,511		88,193		86,316
Federal Home Loan Bank and Federal Reserve Bank stock	136,138		136,163		135,378		135,408		136,625
Brokerage customer receivables	21,527		22,888		26,068		26,378		23,093


Mortgage loans held-for-sale	513,232		606,545		817,912		925,312		984,994


Loans, net of unearned income	37,053,103		35,280,547		34,789,104		33,264,043		32,911,187



Allowance for loan losses	(251,769)		(250,539)		(247,835)		(248,612)		(261,089)
Net loans	36,801,334		35,030,008		34,541,269		33,015,431		32,650,098
Premises, software and equipment, net	762,381		761,213		766,405		748,872		752,375
Lease investments, net	223,813		240,656		242,082		243,933		219,023


Accrued interest receivable and other assets	1,112,697		1,066,750		1,084,115		1,166,917		1,185,811
Trade date securities receivable	—		—		—		—		189,851

Goodwill	654,709		655,402		655,149		645,792		646,336
Other acquisition-related intangible assets	25,118		26,699		28,307		30,118		31,997
Total assets	$	50,969,332	$	50,250,661	$	50,142,143	$	47,832,271	$	46,738,450
Liabilities and Shareholders’ Equity
Deposits:
Non-interest-bearing	$	13,855,844	$	13,748,918	$	14,179,980	$	13,255,417	$	12,796,110
Interest-bearing	28,737,482		28,470,404		27,915,605		26,697,141		26,008,506
Total deposits	42,593,326		42,219,322		42,095,585		39,952,558		38,804,616


Federal Home Loan Bank advances	1,166,071		1,241,071		1,241,071		1,241,071		1,241,071

Other borrowings	482,787		482,516		494,136		504,527		518,493

Subordinated notes	437,162		437,033		436,938		436,811		436,719
Junior subordinated debentures	253,566		253,566		253,566		253,566		253,566
Trade date securities payable	—		437		—		1,348		—
Accrued interest payable and other liabilities	1,308,797		1,124,460		1,122,159		1,032,073		1,144,974



Total liabilities	46,241,709		45,758,405		45,643,455		43,421,954		42,399,439
Shareholders’ Equity:
Preferred stock	412,500		412,500		412,500		412,500		412,500




Common stock	60,722		59,091		58,892		58,794		58,770
Surplus	1,880,913		1,698,093		1,685,572		1,674,062		1,669,002
Treasury stock	—		(109,903)		(109,903)		(109,903)		(100,363)
Retained earnings	2,616,525		2,548,474		2,447,535		2,373,447		2,288,969
Accumulated other comprehensive (loss) income	(243,037)		(115,999)		4,092		1,417		10,133
Total shareholders’ equity	4,727,623		4,492,256		4,498,688		4,410,317		4,339,011
Total liabilities and shareholders’ equity	$	50,969,332	$	50,250,661	$	50,142,143	$	47,832,271	$	46,738,450

WINTRUST FINANCIAL CORPORATION AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED)


	Three Months Ended										Six Months Ended
(In thousands, except per share data)	Jun 30, 2022		Mar 31, 2022		Dec 31, 2021		Sep 30, 2021		Jun 30, 2021		Jun 30, 2022		Jun 30, 2021
Interest income
Interest and fees on loans	$	320,501	$	285,698	$	289,140	$	285,587	$	284,701	$	606,199	$	558,801
Mortgage loans held-for-sale	5,740		6,087		7,234		7,716		8,183		11,827		17,219
Interest-bearing deposits with banks	5,790		1,687		2,254		2,000		1,153		7,477		2,352
Federal funds sold and securities purchased under resale agreements	1,364		431		173		—		—		1,795		—
Investment securities	36,541		32,398		27,210		25,189		23,623		68,939		42,887
Trading account securities	4		5		4		3		1		9		3
Federal Home Loan Bank and Federal Reserve Bank stock	1,823		1,772		1,776		1,777		1,769		3,595		3,514
Brokerage customer receivables	205		174		188		185		149		379		272
Total interest income	371,968		328,252		327,979		322,457		319,579		700,220		625,048
Interest expense
Interest on deposits	18,985		14,854		16,572		19,305		24,298		33,839		52,242
Interest on Federal Home Loan Bank advances	4,878		4,816		4,923		4,931		4,887		9,694		9,727
Interest on other borrowings	2,734		2,239		2,250		2,501		2,568		4,973		5,177
Interest on subordinated notes	5,517		5,482		5,514		5,480		5,512		10,999		10,989
Interest on junior subordinated debentures	2,050		1,567		2,744		2,744		2,724		3,617		5,428
Total interest expense	34,164		28,958		32,003		34,961		39,989		63,122		83,563
Net interest income	337,804		299,294		295,976		287,496		279,590		637,098		541,485
Provision for credit losses	20,417		4,106		9,299		(7,916)		(15,299)		24,523		(60,646)
Net interest income after provision for credit losses	317,387		295,188		286,677		295,412		294,889		612,575		602,131
Non-interest income
Wealth management	31,369		31,394		32,489		31,531		30,690		62,763		59,999
Mortgage banking	33,314		77,231		53,138		55,794		50,584		110,545		164,078
Service charges on deposit accounts	15,888		15,283		14,734		14,149		13,249		31,171		25,285
(Losses) gains on investment securities, net	(7,797)		(2,782)		(1,067)		(2,431)		1,285		(10,579)		2,439
Fees from covered call options	1,069		3,742		1,128		1,157		1,388		4,811		1,388
Trading gains (losses), net	176		3,889		206		58		(438)		4,065		(19)
Operating lease income, net	15,007		15,475		14,204		12,807		12,240		30,482		26,680
Other	13,916		18,558		18,935		23,409		20,375		32,474		36,029
Total non-interest income	102,942		162,790		133,767		136,474		129,373		265,732		315,879
Non-interest expense
Salaries and employee benefits	167,326		172,355		167,131		170,912		172,817		339,681		353,626
Software and equipment	24,250		22,810		23,708		22,029		20,866		47,060		41,778
Operating lease equipment depreciation	8,774		9,708		10,147		10,013		9,949		18,482		20,720
Occupancy, net	17,651		17,824		18,343		18,158		17,687		35,475		37,683
Data processing	8,010		7,505		7,207		7,104		6,920		15,515		12,968
Advertising and marketing	16,615		11,924		13,981		13,443		11,305		28,539		19,851
Professional fees	7,876		8,401		7,551		7,052		7,304		16,277		14,891
Amortization of other acquisition-related intangible assets	1,579		1,609		1,811		1,877		2,039		3,188		4,046
FDIC insurance	6,949		7,729		7,317		6,750		6,405		14,678		12,963
OREO expense, net	294		(1,032)		(641)		(1,531)		769		(738)		518
Other	29,344		25,465		26,844		26,337		24,051		54,809		47,957
Total non-interest expense	288,668		284,298		283,399		282,144		280,112		572,966		567,001
Income before taxes	131,661		173,680		137,045		149,742		144,150		305,341		351,009
Income tax expense	37,148		46,289		38,288		40,605		39,041		83,437		92,752
Net income	$	94,513	$	127,391	$	98,757	$	109,137	$	105,109	$	221,904	$	258,257
Preferred stock dividends	6,991		6,991		6,991		6,991		6,991		13,982		13,982
Net income applicable to common shares	$	87,522	$	120,400	$	91,766	$	102,146	$	98,118	$	207,922	$	244,275
Net income per common share - Basic	$	1.51	$	2.11	$	1.61	$	1.79	$	1.72	$	3.61	$	4.29
Net income per common share - Diluted	$	1.49	$	2.07	$	1.58	$	1.77	$	1.70	$	3.56	$	4.24
Cash dividends declared per common share	$	0.34	$	0.34	$	0.31	$	0.31	$	0.31	$	0.68	$	0.62
Weighted average common shares outstanding	58,063		57,196		57,022		57,000		57,049		57,632		56,977
Dilutive potential common shares	775		862		976		753		726		823		691
Average common shares and dilutive common shares	58,838		58,058		57,998		57,753		57,775		58,455		57,668

TABLE 1: LOAN PORTFOLIO MIX AND GROWTH RATES


											% Growth From (2)
(Dollars in thousands)	Jun 30, 2022		Mar 31, 2022		Dec 31, 2021		Sep 30, 2021		Jun 30, 2021		Dec 31, 2021 (1)		Jun 30, 2021
Balance:
Mortgage loans held-for-sale, excluding early buy-out exercised loans guaranteed by U.S. government agencies	$	294,688	$	296,548	$	473,102	$	570,663	$	633,006	(76)	%	(53)	%
Mortgage loans held-for-sale, early buy-out exercised loans guaranteed by U.S. government agencies	218,544		309,997		344,810		354,649		351,988		(74)		(38)
Total mortgage loans held-for-sale	$	513,232	$	606,545	$	817,912	$	925,312	$	984,994	(75)	%	(48)	%

Core loans:
Commercial
Commercial and industrial	$	5,502,584	$	5,348,266	$	5,346,084	$	4,953,769	$	4,650,607	6	%	18	%
Asset-based lending	1,552,033		1,365,297		1,299,869		1,066,376		892,109		39		74
Municipal	535,586		533,357		536,498		524,192		511,094		0		5
Leases	1,592,329		1,481,368		1,454,099		1,365,281		1,357,036		19		17
Commercial real estate
Residential construction	55,941		57,037		51,464		49,754		55,735		18		0
Commercial construction	1,145,602		1,055,972		1,034,988		1,038,034		1,090,447		22		5
Land	304,775		283,397		269,752		255,927		239,067		26		27
Office	1,321,745		1,273,705		1,285,686		1,269,746		1,220,658		6		8
Industrial	1,746,280		1,668,516		1,585,808		1,490,358		1,434,377		20		22
Retail	1,331,059		1,395,021		1,429,567		1,462,101		1,455,638		(14)		(9)
Multi-family	2,171,583		2,175,875		2,043,754		2,038,526		1,984,582		13		9
Mixed use and other	1,330,220		1,325,551		1,289,267		1,281,268		1,197,865		6		11
Home equity	325,826		321,435		335,155		347,662		369,806		(6)		(12)
Residential real estate
Residential real estate loans for investment	1,965,051		1,749,889		1,606,271		1,520,750		1,479,507		45		33
Residential mortgage loans, early buy-out eligible loans guaranteed by U.S. government agencies	34,764		13,520		22,707		18,847		44,333		NM		(22)
Residential mortgage loans, early buy-out exercised loans guaranteed by U.S. government agencies	79,092		36,576		8,121		8,139		6,445		NM		NM
Total core loans	$	20,994,470	$	20,084,782	$	19,599,090	$	18,690,730	$	17,989,306	14	%	17	%

Niche loans:
Commercial
Franchise	$	1,136,929	$	1,181,761	$	1,227,234	$	1,176,569	$	1,060,468	(15)	%	7	%
Mortgage warehouse lines of credit	398,085		261,847		359,818		468,162		529,867		21		(25)
Community Advantage - homeowners association	341,095		324,383		308,286		291,153		287,689		21		19
Insurance agency lending	906,375		833,720		813,897		260,482		273,999		23		NM
Premium Finance receivables
U.S. property & casualty insurance	4,781,042		4,271,828		4,178,474		3,921,289		3,805,504		29		26
Canada property & casualty insurance	760,405		665,580		677,013		695,688		716,367		25		6
Life insurance	7,608,433		7,354,163		7,042,810		6,655,453		6,359,556		16		20
Consumer and other	44,180		48,519		24,199		22,529		9,024		NM		NM
Total niche loans	$	15,976,544	$	14,941,801	$	14,631,731	$	13,491,325	$	13,042,474	19	%	22	%

Commercial PPP loans:
Originated in 2020	$	18,547	$	40,016	$	74,412	$	172,849	$	656,502	NM		(97)	%
Originated in 2021	63,542		213,948		483,871		909,139		1,222,905		NM		(95)
Total commercial PPP loans	$	82,089	$	253,964	$	558,283	$	1,081,988	$	1,879,407	NM		(96)	%

Total loans, net of unearned income	$	37,053,103	$	35,280,547	$	34,789,104	$	33,264,043	$	32,911,187	13	%	13	%

(1)Annualized.

(2)NM - Not meaningful.

TABLE 2: DEPOSIT PORTFOLIO MIX AND GROWTH RATES


																% Growth From
(Dollars in thousands)	Jun 30, 2022			Mar 31, 2022			Dec 31, 2021			Sep 30, 2021			Jun 30, 2021			Mar 31, 2022 (1)		Jun 30, 2021
Balance:
Non-interest-bearing	$	13,855,844		$	13,748,918		$	14,179,980		$	13,255,417		$	12,796,110		3	%	8	%
NOW and interest-bearing demand deposits	5,918,908			5,089,724			4,646,944			4,255,940			3,933,167			65		50
Wealth management deposits (2)	3,182,407			2,542,995			2,612,759			2,300,818			2,150,851			101		48
Money market	12,273,350			13,012,460			12,840,432			12,148,541			11,784,213			(23)		4
Savings	3,686,596			4,089,230			3,846,681			3,861,296			3,776,400			(39)		(2)
Time certificates of deposit	3,676,221			3,735,995			3,968,789			4,130,546			4,363,875			(6)		(16)
Total deposits	$	42,593,326		$	42,219,322		$	42,095,585		$	39,952,558		$	38,804,616		4	%	10	%
Mix:
Non-interest-bearing	33		%	32		%	34		%	33		%	33		%
NOW and interest-bearing demand deposits	13			12			11			11			10
Wealth management deposits (2)	7			6			6			6			5
Money market	29			31			31			30			30
Savings	9			10			9			10			10
Time certificates of deposit	9			9			9			10			12
Total deposits	100		%	100		%	100		%	100		%	100		%

(1)Annualized.

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

TABLE 3: TIME CERTIFICATES OF DEPOSIT MATURITY/RE-PRICING ANALYSIS

As of June 30, 2022


(Dollars in thousands)	Total Time Certificates of Deposit		Weighted-Average Rate of Maturing Time Certificates of Deposit (1)
1-3 months	$	806,666	0.36	%
4-6 months	714,444		0.39
7-9 months	600,188		0.39
10-12 months	600,812		0.48
13-18 months	562,331		0.66
19-24 months	241,172		0.45
24+ months	150,608		1.03
Total	$	3,676,221	0.47	%

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

`TABLE 4: QUARTERLY AVERAGE BALANCES


	Average Balance for three months ended,
	Jun 30,		Mar 31,		Dec 31,		Sep 30,		Jun 30,
(In thousands)	2022		2022		2021		2021		2021
Interest-bearing deposits with banks, securities purchased under resale agreements and cash equivalents (1)	$	3,265,607	$	4,563,726	$	6,148,165	$	5,112,720	$	3,844,355
Investment securities (2)	6,589,947		6,378,022		5,317,351		5,065,593		4,771,403
FHLB and FRB stock	136,930		135,912		135,414		136,001		136,324

Liquidity management assets (3)	9,992,484		11,077,660		11,600,930		10,314,314		8,752,082
Other earning assets (3)(4)	24,059		25,192		28,298		28,238		23,354
Mortgage loans held-for-sale	560,707		664,019		827,672		871,824		991,011
Loans, net of unearned income (3)(5)	35,860,329		34,830,520		33,677,777		32,985,445		33,085,174


Total earning assets (3)	46,437,579		46,597,391		46,134,677		44,199,821		42,851,621
Allowance for loan and investment security losses	(260,547)		(253,080)		(254,874)		(269,963)		(285,686)
Cash and due from banks	476,741		481,634		468,331		425,000		470,566
Other assets	2,699,653		2,675,899		2,770,643		2,837,652		2,910,250
Total assets	$	49,353,426	$	49,501,844	$	49,118,777	$	47,192,510	$	45,946,751

NOW and interest-bearing demand deposits	$	5,230,702	$	4,788,272	$	4,439,242	$	4,147,436	$	3,829,023
Wealth management deposits	2,835,267		2,505,800		2,646,879		2,353,721		2,226,612
Money market accounts	11,892,948		12,773,805		12,665,167		11,956,346		11,487,954
Savings accounts	3,882,856		3,904,299		3,766,037		3,851,523		3,728,271
Time deposits	3,687,778		3,861,371		4,058,282		4,236,317		4,632,796
Interest-bearing deposits	27,529,551		27,833,547		27,575,607		26,545,343		25,904,656
Federal Home Loan Bank advances	1,197,390		1,241,071		1,241,073		1,241,073		1,235,142
Other borrowings	489,779		494,267		501,933		512,785		525,924
Subordinated notes	437,084		436,966		436,861		436,746		436,644
Junior subordinated debentures	253,566		253,566		253,566		253,566		253,566
Total interest-bearing liabilities	29,907,370		30,259,417		30,009,040		28,989,513		28,355,932
Non-interest-bearing deposits	13,805,128		13,734,064		13,640,270		12,834,084		12,246,274
Other liabilities	1,114,818		1,007,903		1,035,514		1,024,998		1,087,767
Equity	4,526,110		4,500,460		4,433,953		4,343,915		4,256,778
Total liabilities and shareholders’ equity	$	49,353,426	$	49,501,844	$	49,118,777	$	47,192,510	$	45,946,751

Net free funds/contribution (6)	$	16,530,209	$	16,337,974	$	16,125,637	$	15,210,308	$	14,495,689

(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 “Supplemental Non-GAAP Financial Measures/Ratios” at Table 18 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,
	Jun 30,		Mar 31,		Dec 31,		Sep 30,		Jun 30,
(In thousands)	2022		2022		2021		2021		2021
Interest income:
Interest-bearing deposits with banks, securities purchased under resale agreements and cash equivalents	$	7,154	$	2,118	$	2,427	$	2,000	$	1,153
Investment securities	37,013		32,863		27,696		25,681		24,117
FHLB and FRB stock	1,823		1,772		1,776		1,777		1,769

Liquidity management assets (1)	45,990		36,753		31,899		29,458		27,039
Other earning assets (1)	210		181		194		188		150
Mortgage loans held-for-sale	5,740		6,087		7,234		7,716		8,183
Loans, net of unearned income (1)	321,069		286,125		289,557		285,998		285,116


Total interest income	$	373,009	$	329,146	$	328,884	$	323,360	$	320,488

Interest expense:
NOW and interest-bearing demand deposits	$	2,553	$	1,990	$	1,913	$	1,916	$	1,886
Wealth management deposits	3,685		918		1,402		1,176		958
Money market accounts	8,559		7,648		7,658		7,905		8,373
Savings accounts	347		336		345		406		402
Time deposits	3,841		3,962		5,254		7,902		12,679
Interest-bearing deposits	18,985		14,854		16,572		19,305		24,298
Federal Home Loan Bank advances	4,878		4,816		4,923		4,931		4,887
Other borrowings	2,734		2,239		2,250		2,501		2,568
Subordinated notes	5,517		5,482		5,514		5,480		5,512
Junior subordinated debentures	2,050		1,567		2,744		2,744		2,724
Total interest expense	$	34,164	$	28,958	$	32,003	$	34,961	$	39,989

Less: Fully taxable-equivalent adjustment	(1,041)		(894)		(905)		(903)		(909)
Net interest income (GAAP) (2)	337,804		299,294		295,976		287,496		279,590
Fully taxable-equivalent adjustment	1,041		894		905		903		909
Net interest income, fully taxable-equivalent (non-GAAP) (2)	$	338,845	$	300,188	$	296,881	$	288,399	$	280,499

(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 “Supplemental Non-GAAP Financial Measures/Ratios” at Table 18 for additional information on this performance measure/ratio.

TABLE 6: QUARTERLY NET INTEREST MARGIN


	Net Interest Margin for three months ended,
	Jun 30, 2022		Mar 31, 2022		Dec 31, 2021		Sep 30, 2021		Jun 30, 2021
Yield earned on:
Interest-bearing deposits with banks, securities purchased under resale agreements and cash equivalents	0.88	%	0.19	%	0.16	%	0.16	%	0.12	%
Investment securities	2.25		2.09		2.07		2.01		2.03
FHLB and FRB stock	5.34		5.29		5.20		5.18		5.20

Liquidity management assets	1.85		1.35		1.09		1.13		1.24
Other earning assets	3.49		2.91		2.71		2.64		2.59
Mortgage loans held-for-sale	4.11		3.72		3.47		3.51		3.31
Loans, net of unearned income	3.59		3.33		3.41		3.44		3.46

Total earning assets	3.22	%	2.86	%	2.83	%	2.90	%	3.00	%

Rate paid on:
NOW and interest-bearing demand deposits	0.20	%	0.17	%	0.17	%	0.18	%	0.20	%
Wealth management deposits	0.52		0.15		0.21		0.20		0.17
Money market accounts	0.29		0.24		0.24		0.26		0.29
Savings accounts	0.04		0.03		0.04		0.04		0.04
Time deposits	0.42		0.42		0.51		0.74		1.10
Interest-bearing deposits	0.28		0.22		0.24		0.29		0.38
Federal Home Loan Bank advances	1.63		1.57		1.57		1.58		1.59
Other borrowings	2.24		1.84		1.78		1.94		1.96
Subordinated notes	5.05		5.02		5.05		5.02		5.05
Junior subordinated debentures	3.20		2.47		4.23		4.23		4.25
Total interest-bearing liabilities	0.46	%	0.39	%	0.42	%	0.48	%	0.56	%

Interest rate spread (1)(2)	2.76	%	2.47	%	2.41	%	2.42	%	2.44	%
Less: Fully taxable-equivalent adjustment	(0.01)		(0.01)		(0.01)		(0.01)		(0.01)
Net free funds/contribution (3)	0.17		0.14		0.14		0.17		0.19
Net interest margin (GAAP) (2)	2.92	%	2.60	%	2.54	%	2.58	%	2.62	%
Fully taxable-equivalent adjustment	0.01		0.01		0.01		0.01		0.01
Net interest margin, fully taxable-equivalent (non-GAAP) (2)	2.93	%	2.61	%	2.55	%	2.59	%	2.63	%

(1)Interest rate spread is the difference between the yield earned on earning assets and the rate paid on interest-bearing liabilities.

(2)See “Supplemental Non-GAAP Financial Measures/Ratios” at Table 18 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 six months ended,				Interest for six months ended,				Yield/Rate for six months ended,
(Dollars in thousands)	Jun 30, 2022		Jun 30, 2021		Jun 30, 2022		Jun 30, 2021		Jun 30, 2022		Jun 30, 2021
Interest-bearing deposits with banks, securities purchased under resale agreements and cash equivalents (1)	$	3,911,080	$	4,036,553	$	9,272	$	2,352	0.48	%	0.12	%
Investment securities (2)	6,484,570		4,360,323		69,876		43,881		2.17		2.03
FHLB and FRB stock	136,424		136,043		3,595		3,514		5.31		5.21

Liquidity management assets (3)(4)	$	10,532,074	$	8,532,919	$	82,743	$	49,747	1.58	%	1.18	%
Other earning assets (3)(4)(5)	24,622		21,870		391		275		3.20		2.55
Mortgage loans held-for-sale	612,078		1,070,985		11,827		17,219		3.90		3.24
Loans, net of unearned income (3)(4)(6)	35,348,269		32,765,825		607,194		559,600		3.46		3.44


Total earning assets (4)	$	46,517,043	$	42,391,599	$	702,155	$	626,841	3.04	%	2.98	%
Allowance for loan and investment security losses	(256,834)		(306,268)
Cash and due from banks	479,174		418,777
Other assets	2,687,842		2,966,281
Total assets	$	49,427,225	$	45,470,389

NOW and interest-bearing demand deposits	$	5,010,709	$	3,761,614	$	4,543	$	3,909	0.18	%	0.21	%
Wealth management deposits	2,671,444		2,220,223		4,603		1,957		0.35		0.18
Money market accounts	12,330,943		11,284,383		16,207		16,468		0.27		0.29
Savings accounts	3,893,519		3,658,307		683		832		0.04		0.05
Time deposits	3,774,095		4,753,424		7,803		29,076		0.42		1.23
Interest-bearing deposits	$	27,680,710	$	25,677,951	$	33,839	$	52,242	0.25	%	0.41	%
Federal Home Loan Bank advances	1,219,110		1,231,806		9,694		9,727		1.60		1.59
Other borrowings	492,011		522,078		4,973		5,177		2.04		2.00
Subordinated notes	437,025		436,588		10,999		10,989		5.03		5.03
Junior subordinated debentures	253,566		253,566		3,617		5,428		2.84		4.26
Total interest-bearing liabilities	$	30,082,422	$	28,121,989	$	63,122	$	83,563	0.42	%	0.60	%
Non-interest-bearing deposits	13,769,792		12,029,936
Other liabilities	1,061,655		1,107,376
Equity	4,513,356		4,211,088
Total liabilities and shareholders’ equity	$	49,427,225	$	45,470,389
Interest rate spread (4)(7)									2.62	%	2.38	%
Less: Fully taxable-equivalent adjustment					(1,935)		(1,793)		(0.01)		(0.01)
Net free funds/contribution (8)	$	16,434,621	$	14,269,610					0.15		0.21
Net interest income/margin (GAAP) (4)					$	637,098	$	541,485	2.76	%	2.58	%
Fully taxable-equivalent adjustment					1,935		1,793		0.01		0.01
Net interest income/margin, fully taxable-equivalent (non-GAAP) (4)					$	639,033	$	543,278	2.77	%	2.59	%

(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 “Supplemental Non-GAAP Financial Measures/Ratios” at Table 18 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 of 100 and 200 basis points and a decrease of 100 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
Jun 30, 2022	17.0	%	9.0	%	(12.6)	%
Mar 31, 2022	21.4		11.0		(11.3)
Dec 31, 2021	25.3		12.4		(8.5)
Sep 30, 2021	24.3		11.5		(7.8)
Jun 30, 2021	24.6		11.7		(6.9)


Ramp Scenario	+200 Basis Points		+100 Basis Points		-100 Basis Points
Jun 30, 2022	10.2	%	5.3	%	(6.9)	%
Mar 31, 2022	11.2		5.8		(7.1)
Dec 31, 2021	13.9		6.9		(5.6)
Sep 30, 2021	10.8		5.4		(3.8)
Jun 30, 2021	11.4		5.8		(3.3)

TABLE 9: MATURITIES AND SENSITIVITIES TO CHANGES IN INTEREST RATES


	Loans repricing or maturity period
As of June 30, 2022	One year or less		From one to five years		From five to fifteen years		After fifteen years		Total
(In thousands)
Commercial
Fixed rate	$	464,118	$	2,246,393	$	1,395,019	$	12,365	$	4,117,895
Fixed rate - PPP	9,032		73,057		—		—		82,089
Variable rate	7,843,285		3,783		53		—		7,847,121
Total commercial	$	8,316,435	$	2,323,233	$	1,395,072	$	12,365	$	12,047,105
Commercial real estate
Fixed rate	425,615		2,542,948		599,290		40,377		3,608,230
Variable rate	5,780,969		18,006		—		—		5,798,975
Total commercial real estate	$	6,206,584	$	2,560,954	$	599,290	$	40,377	$	9,407,205
Home equity
Fixed rate	12,945		3,571		2,124		39		18,679
Variable rate	307,147		—		—		—		307,147
Total home equity	$	320,092	$	3,571	$	2,124	$	39	$	325,826
Residential real estate
Fixed rate	15,003		4,731		31,471		984,504		1,035,709
Variable rate	62,764		206,163		774,271		—		1,043,198
Total residential real estate	$	77,767	$	210,894	$	805,742	$	984,504	$	2,078,907
Premium finance receivables - property & casualty
Fixed rate	5,380,040		161,407		—		—		5,541,447
Variable rate	—		—		—		—		—
Total premium finance receivables - property & casualty	$	5,380,040	$	161,407	$	—	$	—	$	5,541,447
Premium finance receivables - life insurance
Fixed rate	16,346		497,654		21,784		—		535,784
Variable rate	7,072,649		—		—		—		7,072,649
Total premium finance receivables - life insurance	$	7,088,995	$	497,654	$	21,784	$	—	$	7,608,433
Consumer and other
Fixed rate	10,538		5,276		97		490		16,401
Variable rate	27,779		—		—		—		27,779
Total consumer and other	$	38,317	$	5,276	$	97	$	490	$	44,180

Total per category
Fixed rate	6,324,605		5,461,980		2,049,785		1,037,775		14,874,145
Fixed rate - PPP	9,032		73,057		—		—		82,089
Variable rate	21,094,593		227,952		774,324		—		22,096,869
Total loans, net of unearned income	$	27,428,230	$	5,762,989	$	2,824,109	$	1,037,775	$	37,053,103

Variable Rate Loan Pricing by Index:
Prime									$	3,699,801
One- month LIBOR									6,534,892
Three- month LIBOR									237,028
Twelve- month LIBOR									6,747,889
U.S. Treasury tenors									130,698
SOFR tenors									3,586,073
Ameribor tenors									332,768
BSBY tenors									29,945
Other									797,775
Total variable rate									$	22,096,869

LIBOR - London Interbank Offered Rate.

SOFR - Secured Overnight Financing Rate.

Ameribor - American Interbank Offered Rate.

BSBY - Bloomberg Short Term Bank Yield Index.

Source: Bloomberg

As noted in the table on the previous page, the majority of the Company’s portfolio is tied to LIBOR 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 $6.5 billion of variable rate loans tied to one-month LIBOR and $6.7 billion of variable rate loans tied to twelve-month LIBOR. The above chart shows:


	Basis Point (bp) Change in
	Prime		1-month LIBOR		12-month LIBOR
Second Quarter 2022	125	bps	134	bps	152	bps
First Quarter 2022	25		35		152
Fourth Quarter 2021	0		2		34
Third Quarter 2021	0		-2		-1
Second Quarter 2021	0		-1		-3

TABLE 10: ALLOWANCE FOR CREDIT LOSSES


	Three Months Ended															Six Months Ended
	Jun 30,			Mar 31,			Dec 31,			Sep 30,			Jun 30,			Jun 30,			Jun 30,
(Dollars in thousands)	2022			2022			2021			2021			2021			2022			2021
Allowance for credit losses at beginning of period	$	301,327		$	299,731		$	296,138		$	304,121		$	321,308		$	299,731		$	379,969

Provision for credit losses	20,417			4,106			9,299			(7,916)			(15,299)			24,523			(60,646)
Initial allowance for credit losses recognized on PCD assets acquired during the period (1)	—			—			470			—			—			—			—
Other adjustments	(56)			22			5			(65)			34			(34)			65
Charge-offs:
Commercial	8,928			1,414			4,431			1,352			3,237			10,342			15,018
Commercial real estate	40			777			495			406			1,412			817			2,392
Home equity	192			197			135			59			142			389			142
Residential real estate	—			466			1,067			10			3			466			5
Premium finance receivables	2,903			1,678			2,314			1,390			2,077			4,581			5,316
Consumer and other	253			193			157			112			104			446			218

Total charge-offs	12,316			4,725			8,599			3,329			6,975			17,041			23,091
Recoveries:
Commercial	996			538			389			816			902			1,534			1,354
Commercial real estate	553			32			217			373			514			585			714
Home equity	123			93			461			313			328			216			429
Residential real estate	6			5			85			5			36			11			240
Premium finance receivables	1,119			1,476			1,240			1,728			3,239			2,595			5,021
Consumer and other	23			49			26			92			34			72			66

Total recoveries	2,820			2,193			2,418			3,327			5,053			5,013			7,824
Net charge-offs	(9,496)			(2,532)			(6,181)			(2)			(1,922)			(12,028)			(15,267)
Allowance for credit losses at period end	$	312,192		$	301,327		$	299,731		$	296,138		$	304,121		$	312,192		$	304,121

Annualized net charge-offs (recoveries) by category as a percentage of its own respective category’s average:
Commercial	0.27		%	0.03		%	0.14		%	0.02		%	0.08		%	0.15		%	0.22		%
Commercial real estate	(0.02)			0.03			0.01			0.00			0.04			0.01			0.04
Home equity	0.09			0.13			(0.38)			(0.28)			(0.20)			0.11			(0.15)
Residential real estate	0.00			0.11			0.25			0.00			(0.01)			0.05			(0.03)
Premium finance receivables	0.06			0.01			0.04			(0.01)			(0.04)			0.03			0.01
Consumer and other	1.31			1.19			0.95			0.26			0.69			1.26		%	0.62

Total loans, net of unearned income	0.11		%	0.03		%	0.07		%	0.00		%	0.02		%	0.07		%	0.09		%


Loans at period end	$	37,053,103		$	35,280,547		$	34,789,104		$	33,264,043		$	32,911,187
Allowance for loan losses as a percentage of loans at period end	0.68		%	0.71		%	0.71		%	0.75		%	0.79		%
Allowance for loan and unfunded lending-related commitment losses as a percentage of loans at period end	0.84			0.85			0.86			0.89			0.92
Allowance for loan and unfunded lending-related commitment losses as a percentage of loans at period end, excluding PPP loans	0.84			0.86			0.88			0.92			0.98

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

TABLE 11: ALLOWANCE AND PROVISION FOR CREDIT LOSSES BY COMPONENT


	Three Months Ended										Six Months Ended
	Jun 30,		Mar 31,		Dec 31,		Sep 30,		Jun 30,		Jun 30,		Jun 30,
(In thousands)	2022		2022		2021		2021		2021		2022		2021
Provision for loan losses	$	10,782	$	5,214	$	4,929	$	(12,410)	$	(14,731)	$	15,996	$	(43,082)
Provision for unfunded lending-related commitments losses	9,711		(1,189)		4,375		4,501		(558)		8,522		(17,593)
Provision for held-to-maturity securities losses	(76)		81		(5)		(7)		(10)		5		29
Provision for credit losses	$	20,417	$	4,106	$	9,299	$	(7,916)	$	(15,299)	$	24,523	$	(60,646)

Allowance for loan losses	$	251,769	$	250,539	$	247,835	$	248,612	$	261,089
Allowance for unfunded lending-related commitments losses	60,340		50,629		51,818		47,443		42,942
Allowance for loan losses and unfunded lending-related commitments losses	312,109		301,168		299,653		296,055		304,031
Allowance for held-to-maturity securities losses	83		159		78		83		90
Allowance for credit losses	$	312,192	$	301,327	$	299,731	$	296,138	$	304,121

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 June 30, 2022, March 31, 2022 and December 31, 2021.


	As of Jun 30, 2022						As of Mar 31, 2022						As of Dec 31, 2021
(Dollars in thousands)	Recorded Investment		Calculated Allowance		% of its category’s balance		Recorded Investment		Calculated Allowance		% of its category’s balance		Recorded Investment		Calculated Allowance		% of its category’s balance
Commercial:
Commercial, industrial and other, excluding PPP loans	$	11,965,016	$	142,916	1.19	%	$	11,329,999	$	120,910	1.07	%	$	11,345,785	$	119,305	1.05	%
Commercial PPP loans	82,089		3		0.00		253,964		1		0.00		558,283		2		0.00
Commercial real estate:
Construction and development	1,506,318		45,522		3.02		1,396,406		34,206		2.45		1,356,204		35,206		2.60
Non-construction	7,900,887		98,210		1.24		7,838,668		110,700		1.41		7,634,082		109,377		1.43
Home equity	325,826		6,990		2.15		321,435		10,566		3.29		335,155		10,699		3.19
Residential real estate	2,078,907		10,479		0.50		1,799,985		9,429		0.52		1,637,099		8,782		0.54
Premium finance receivables
Commercial insurance loans	5,541,447		6,840		0.12		4,937,408		14,082		0.29		4,855,487		15,246		0.31
Life insurance loans	7,608,433		662		0.01		7,354,163		640		0.01		7,042,810		613		0.01
Consumer and other	44,180		487		1.10		48,519		634		1.31		24,199		423		1.75
Total loans, net of unearned income	$	37,053,103	$	312,109	0.84	%	$	35,280,547	$	301,168	0.85	%	$	34,789,104	$	299,653	0.86	%
Total loans, net of unearned income, excluding PPP loans	$	36,971,014	$	312,106	0.84	%	$	35,026,583	$	301,167	0.86	%	$	34,230,821	$	299,651	0.88	%

Total core loans (1)	$	20,994,470	$	275,188	1.31	%	$	20,084,782	$	262,447	1.31	%	$	19,599,090	$	260,511	1.33	%
Total niche loans (1)	15,976,544		36,918		0.23		14,941,801		38,720		0.26		14,631,731		39,140		0.27
Total PPP loans	82,089		3		0.00		253,964		1		0.00		558,283		2		0.00

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

TABLE 13: LOAN PORTFOLIO AGING


(In thousands)	Jun 30, 2022		Mar 31, 2022		Dec 31, 2021		Sep 30, 2021		Jun 30, 2021
Loan Balances:
Commercial
Nonaccrual	$	32,436	$	16,878	$	20,399	$	26,468	$	23,232
90+ days and still accruing	—		—		15		—		1,244
60-89 days past due	16,789		1,294		24,262		9,768		5,204
30-59 days past due	14,120		31,889		43,861		25,224		18,478
Current	11,983,760		11,533,902		11,815,531		11,126,512		11,394,118
Total commercial	$	12,047,105	$	11,583,963	$	11,904,068	$	11,187,972	$	11,442,276
Commercial real estate
Nonaccrual	$	10,718	$	12,301	$	21,746	$	23,706	$	26,035
90+ days and still accruing	—		—		—		—		—
60-89 days past due	6,771		2,648		284		5,395		4,382
30-59 days past due	34,220		30,141		40,443		79,818		19,698
Current	9,355,496		9,189,984		8,927,813		8,776,795		8,628,254
Total commercial real estate	$	9,407,205	$	9,235,074	$	8,990,286	$	8,885,714	$	8,678,369
Home equity
Nonaccrual	$	1,084	$	1,747	$	2,574	$	3,449	$	3,478
90+ days and still accruing	—		—		—		164		—
60-89 days past due	154		199		—		340		301
30-59 days past due	930		545		1,120		867		777
Current	323,658		318,944		331,461		342,842		365,250
Total home equity	$	325,826	$	321,435	$	335,155	$	347,662	$	369,806
Residential real estate
Early buy-out loans guaranteed by U.S. government agencies (1)	$	113,856	$	50,096	30,828		$	26,986	$	50,778
Nonaccrual	8,330		7,262		16,440		22,633		23,050
90+ days and still accruing	—		—		—		—		—
60-89 days past due	534		293		982		1,540		1,584
30-59 days past due	147		18,808		12,145		1,076		2,139
Current	1,956,040		1,723,526		1,576,704		1,495,501		1,452,734
Total residential real estate	$	2,078,907	$	1,799,985	$	1,637,099	$	1,547,736	$	1,530,285
Premium finance receivables
Nonaccrual	$	13,303	$	6,707	$	5,433	$	7,300	$	6,418
90+ days and still accruing	6,447		12,363		7,217		5,811		3,570
60-89 days past due	17,095		31,291		28,104		15,804		7,759
30-59 days past due	88,468		36,800		89,070		21,654		32,758
Current	13,024,567		12,204,410		11,768,473		11,221,861		10,830,922
Total premium finance receivables	$	13,149,880	$	12,291,571	$	11,898,297	$	11,272,430	$	10,881,427
Consumer and other
Nonaccrual	$	8	$	4	$	477	$	384	$	485
90+ days and still accruing	25		43		137		126		178
60-89 days past due	8		5		34		16		22
30-59 days past due	119		221		509		125		75
Current	44,020		48,246		23,042		21,878		8,264
Total consumer and other	$	44,180	$	48,519	$	24,199	$	22,529	$	9,024
Total loans, net of unearned income
Early buy-out loans guaranteed by U.S. government agencies (1)	$	113,856	$	50,096	$	30,828	$	26,986	$	50,778
Nonaccrual	65,879		44,899		67,069		83,940		82,698
90+ days and still accruing	6,472		12,406		7,369		6,101		4,992
60-89 days past due	41,351		35,730		53,666		32,863		19,252
30-59 days past due	138,004		118,404		187,148		128,764		73,925
Current	36,687,541		35,019,012		34,443,024		32,985,389		32,679,542
Total loans, net of unearned income	$	37,053,103	$	35,280,547	$	34,789,104	$	33,264,043	$	32,911,187

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

TABLE 14: NON-PERFORMING ASSETS(1) AND TROUBLED DEBT RESTRUCTURINGS (“TDRs”)


	Jun 30,			Mar 31,			Dec 31,			Sep 30,			Jun 30,
(Dollars in thousands)	2022			2022			2021			2021			2021
Loans past due greater than 90 days and still accruing (2):
Commercial	$	—		$	—		$	15		$	—		$	1,244
Commercial real estate	—			—			—			—			—
Home equity	—			—			—			164			—
Residential real estate	—			—			—			—			—
Premium finance receivables	6,447			12,363			7,217			5,811			3,570
Consumer and other	25			43			137			126			178
Total loans past due greater than 90 days and still accruing	6,472			12,406			7,369			6,101			4,992
Non-accrual loans:
Commercial	32,436			16,878			20,399			26,468			23,232
Commercial real estate	10,718			12,301			21,746			23,706			26,035
Home equity	1,084			1,747			2,574			3,449			3,478
Residential real estate	8,330			7,262			16,440			22,633			23,050
Premium finance receivables	13,303			6,707			5,433			7,300			6,418
Consumer and other	8			4			477			384			485
Total non-accrual loans	65,879			44,899			67,069			83,940			82,698
Total non-performing loans:
Commercial	32,436			16,878			20,414			26,468			24,476
Commercial real estate	10,718			12,301			21,746			23,706			26,035
Home equity	1,084			1,747			2,574			3,613			3,478
Residential real estate	8,330			7,262			16,440			22,633			23,050
Premium finance receivables	19,750			19,070			12,650			13,111			9,988
Consumer and other	33			47			614			510			663
Total non-performing loans	$	72,351		$	57,305		$	74,438		$	90,041		$	87,690
Other real estate owned	5,574			4,978			1,959			9,934			10,510
Other real estate owned - from acquisitions	1,265			1,225			2,312			3,911			5,062
Other repossessed assets	—			—			—			—			—
Total non-performing assets	$	79,190		$	63,508		$	78,709		$	103,886		$	103,262

Accruing TDRs not included within non-performing assets	$	36,184		$	35,922		$	37,486		$	38,468		$	44,019

Total non-performing loans by category as a percent of its own respective category’s period-end balance:
Commercial	0.27		%	0.15		%	0.17		%	0.24		%	0.21		%
Commercial real estate	0.11			0.13			0.24			0.27			0.30
Home equity	0.33			0.54			0.77			1.04			0.94
Residential real estate	0.40			0.40			1.00			1.46			1.51
Premium finance receivables	0.15			0.16			0.11			0.12			0.09
Consumer and other	0.07			0.10			2.54			2.26			7.35
Total loans, net of unearned income	0.20		%	0.16		%	0.21		%	0.27		%	0.27		%
Total non-performing assets as a percentage of total assets	0.16		%	0.13		%	0.16		%	0.22		%	0.22		%
Allowance for loan losses and unfunded lending-related commitments losses as a percentage of non-accrual loans	473.76		%	670.77		%	446.78		%	352.70		%	367.64		%

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

(2)As of June 30, 2022, March 31, 2022, December 31, 2021, September 30, 2021, and June 30, 2021, approximately $541,000, $320,000, $320,000, $445,000 and $320,000, respectively, of TDRs were past due greater than 90 days and still accruing interest.

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


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

Balance at beginning of period	$	57,305	$	74,438		$	90,041		$	87,690		$	99,059	$	74,438		$	127,513
Additions from becoming non-performing in the respective period	22,841		4,141			6,851			9,341			12,762		26,982			22,656

Return to performing status	(1,000)		(729)			(6,616)			(3,322)			—		(1,729)			(654)
Payments received	(4,029)		(20,139)			(13,212)			(5,568)			(12,312)		(24,168)			(35,043)
Transfer to OREO and other repossessed assets	(1,611)		(4,377)			(275)			(720)			(3,660)		(5,988)			(5,032)
Charge-offs, net	(1,969)		(2,354)			(5,167)			(548)			(4,684)		(4,323)			(7,636)
Net change for niche loans (1)	814		6,325			2,816			3,168			(3,475)		7,139			(14,114)
Balance at end of period	$	72,351	$	57,305		$	74,438		$	90,041		$	87,690	$	72,351		$	87,690

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

TDRs


	Jun 30,		Mar 31,		Dec 31,		Sep 30,		Jun 30,
(In thousands)	2022		2022		2021		2021		2021
Accruing TDRs:
Commercial	$	2,456	$	2,773	$	4,131	$	4,532	$	6,911
Commercial real estate	9,659		10,068		8,421		8,385		9,659
Residential real estate and other	24,069		23,081		24,934		25,551		27,449
Total accrual	$	36,184	$	35,922	$	37,486	$	38,468	$	44,019
Non-accrual TDRs: (1)
Commercial	$	4,786	$	4,935	$	6,746	$	3,079	$	4,104
Commercial real estate	1,955		2,050		2,050		3,239		3,434
Residential real estate and other	2,453		1,964		3,027		3,685		4,190
Total non-accrual	$	9,194	$	8,949	$	11,823	$	10,003	$	11,728
Total TDRs:
Commercial	$	7,242	$	7,708	$	10,877	$	7,611	$	11,015
Commercial real estate	11,614		12,118		10,471		11,624		13,093
Residential real estate and other	26,522		25,045		27,961		29,236		31,639
Total TDRs	$	45,378	$	44,871	$	49,309	$	48,471	$	55,747

(1)Included in total non-performing loans.

Other Real Estate Owned


	Three Months Ended
	Jun 30,		Mar 31,		Dec 31,		Sep 30,		Jun 30,
(In thousands)	2022		2022		2021		2021		2021
Balance at beginning of period	$	6,203	$	4,271	$	13,845	$	15,572	$	15,813
Disposals/resolved	(1,172)		(2,497)		(9,664)		(1,949)		(3,152)
Transfers in at fair value, less costs to sell	2,090		4,429		275		315		3,660

Fair value adjustments	(282)		—		(185)		(93)		(749)
Balance at end of period	$	6,839	$	6,203	$	4,271	$	13,845	$	15,572

	Period End
	Jun 30,		Mar 31,		Dec 31,		Sep 30,		Jun 30,
Balance by Property Type:	2022		2022		2021		2021		2021
Residential real estate	$	1,630	$	1,127	$	1,310	$	1,592	$	1,952
Residential real estate development	133		—		—		934		1,030
Commercial real estate	5,076		5,076		2,961		11,319		12,590
Total	$	6,839	$	6,203	$	4,271	$	13,845	$	15,572

TABLE 15: NON-INTEREST INCOME


	Three Months Ended										Q2 2022 compared to Q1 2022				Q2 2022 compared to Q2 2021
	Jun 30,		Mar 31,		Dec 31,		Sep 30,		Jun 30,
(Dollars in thousands)	2022		2022		2021		2021		2021		$ Change		% Change		$ Change		% Change
Brokerage	$	4,272	$	4,632	$	5,292	$	5,230	$	5,148	$	(360)	(8)	%	$	(876)	(17)	%
Trust and asset management	27,097		26,762		27,197		26,301		25,542		335		1		1,555		6
Total wealth management	31,369		31,394		32,489		31,531		30,690		(25)		—		679		2
Mortgage banking	33,314		77,231		53,138		55,794		50,584		(43,917)		(57)		(17,270)		(34)
Service charges on deposit accounts	15,888		15,283		14,734		14,149		13,249		605		4		2,639		20
(Losses) gains on investment securities, net	(7,797)		(2,782)		(1,067)		(2,431)		1,285		(5,015)		NM		(9,082)		NM
Fees from covered call options	1,069		3,742		1,128		1,157		1,388		(2,673)		(71)		(319)		(23)
Trading gains (losses), net	176		3,889		206		58		(438)		(3,713)		(95)		614		NM
Operating lease income, net	15,007		15,475		14,204		12,807		12,240		(468)		(3)		2,767		23
Other:
Interest rate swap fees	3,300		4,569		3,526		4,868		2,820		(1,269)		(28)		480		17
BOLI	(884)		48		1,192		2,154		1,342		(932)		NM		(2,226)		NM
Administrative services	1,591		1,853		1,846		1,359		1,228		(262)		(14)		363		30
Foreign currency remeasurement gains (losses)	97		11		111		77		(782)		86		NM		879		NM
Early pay-offs of capital leases	160		265		249		209		195		(105)		(40)		(35)		(18)
Miscellaneous	9,652		11,812		12,011		14,742		15,572		(2,160)		(18)		(5,920)		(38)
Total Other	13,916		18,558		18,935		23,409		20,375		(4,642)		(25)		(6,459)		(32)
Total Non-Interest Income	$	102,942	$	162,790	$	133,767	$	136,474	$	129,373	$	(59,848)	(37)	%	$	(26,431)	(20)	%

NM - Not meaningful.


	Six Months Ended
	Jun 30,		Jun 30,		$		%
(Dollars in thousands)	2022		2021		Change		Change
Brokerage	$	8,904	$	10,188	$	(1,284)	(13)	%
Trust and asset management	53,859		49,811		4,048		8
Total wealth management	62,763		59,999		2,764		5
Mortgage banking	110,545		164,078		(53,533)		(33)
Service charges on deposit accounts	31,171		25,285		5,886		23
(Losses) gains on investment securities, net	(10,579)		2,439		(13,018)		NM
Fees from covered call options	4,811		1,388		3,423		NM
Trading gains (losses), net	4,065		(19)		4,084		NM
Operating lease income, net	30,482		26,680		3,802		14
Other:
Interest rate swap fees	7,869		5,308		2,561		48
BOLI	(836)		2,466		(3,302)		NM
Administrative services	3,444		2,484		960		39
Foreign currency remeasurement gains (losses)	108		(683)		791		NM
Early pay-offs of leases	425		143		282		NM
Miscellaneous	21,464		26,311		(4,847)		(18)
Total Other	32,474		36,029		(3,555)		(10)
Total Non-Interest Income	$	265,732	$	315,879	$	(50,147)	(16)	%

NM - Not meaningful.

TABLE 16: MORTGAGE BANKING


	Three Months Ended															Six Months Ended
(Dollars in thousands)	Jun 30, 2022			Mar 31, 2022			Dec 31, 2021			Sep 30, 2021			Jun 30, 2021			Jun 30, 2022			Jun 30, 2021
Originations:
Retail originations	$	595,601		$	647,785		$	980,627		$	1,153,265		$	1,328,721		$	1,243,386		$	2,970,385

Veterans First originations	225,378			247,738			318,244			405,663			395,290			473,116			975,593
Total originations for sale (A)	$	820,979		$	895,523		$	1,298,871		$	1,558,928		$	1,724,011		$	1,716,502		$	3,945,978
Originations for investment	297,713			274,628			177,676			181,886			249,749			572,341			571,607
Total originations	$	1,118,692		$	1,170,151		$	1,476,547		$	1,740,814		$	1,973,760		$	2,288,843		$	4,517,585

Retail originations as percentage of originations for sale	73		%	72		%	75		%	74		%	77		%	72		%	75		%
Veterans First originations as a percentage of originations for sale	27			28			25			26			23			28			25


Purchases as a percentage of originations for sale	78		%	53		%	52		%	56		%	53		%	65		%	38		%
Refinances as a percentage of originations for sale	22			47			48			44			47			35			62




Production Margin:


Production revenue (B) (1)	$	17,511		$	14,585		$	28,182		$	39,247		$	37,531		$	32,096		$	108,813




Total originations for sale (A)	$	820,979		$	895,523		$	1,298,871		$	1,558,928		$	1,724,011		$	1,716,502		$	3,945,978
Add: Current period end mandatory interest rate lock commitments to fund originations for sale (2)	301,322			330,196			353,509			510,982			605,400			301,322			605,400
Less: Prior period end mandatory interest rate lock commitments to fund originations for sale (2)	330,196			353,509			510,982			605,400			798,534			353,509			1,072,717
Total mortgage production volume (C)	$	792,105		$	872,210		$	1,141,398		$	1,464,510		$	1,530,877		$	1,664,315		$	3,478,661


Production margin (B / C)	2.21		%	1.67		%	2.47		%	2.68		%	2.45		%	1.93		%	3.13		%

Mortgage Servicing:
Loans serviced for others (D)	$	13,643,623		$	13,426,535		$	13,126,254		$	12,720,126		$	12,307,337
MSRs, at fair value (E)	212,664			199,146			147,571			133,552			127,604
Percentage of MSRs to loans serviced for others (E / D)	1.56		%	1.48		%	1.12		%	1.05		%	1.04		%
Servicing income	$	10,979		$	10,851		$	10,766		$	10,454		$	9,830		$	21,830		$	19,466

Components of MSR:
MSR - current period capitalization	$	11,210		$	14,401		$	15,080		$	15,546		$	17,512		$	25,611		$	42,128
MSR - collection of expected cash flows - paydowns	(1,598)			(1,215)			(1,101)			(1,036)			(991)			(2,813)			(1,719)
MSR - collection of expected cash flows - payoffs	(5,240)			(4,801)			(6,385)			(7,558)			(7,549)			(10,041)			(16,989)

MSR - changes in fair value model assumptions	9,147			43,365			6,656			(888)			(5,540)			52,512			12,505



Summary of Mortgage Banking Revenue:
Production revenue (1)	$	17,511		$	14,585		$	28,182		$	39,247		$	37,531		$	32,096		$	108,813
Servicing income	10,979			10,851			10,766			10,454			9,830			21,830			19,466
MSR activity	13,519			51,750			14,250			6,064			3,432			65,269			35,925
Changes in fair value on early buy-out loans guaranteed by U.S. government agencies and other revenue	(8,695)			45			(60)			29			(209)			(8,650)			(126)
Total mortgage banking revenue	$	33,314		$	77,231		$	53,138		$	55,794		$	50,584		$	110,545		$	164,078

(1)Production revenue represents revenue earned from the origination and subsequent sale of mortgages, including gains on loans sold and fees from originations, changes in other related financial instruments carried at fair value, processing and other related activities, and excludes servicing fees, changes in the fair value of servicing rights and changes to the mortgage recourse obligation and other non-production revenue.

(2)Certain volume adjusted for the estimated pull-through rate of the loan, which represents the Company’s best estimate of the likelihood that a committed loan will ultimately fund.

TABLE 17: NON-INTEREST EXPENSE


	Three Months Ended										Q2 2022 compared to Q1 2022				Q2 2022 compared to Q2 2021
	Jun 30,		Mar 31,		Dec 31,		Sep 30,		Jun 30,
(Dollars in thousands)	2022		2022		2021		2021		2021		$ Change		% Change		$ Change		% Change
Salaries and employee benefits:
Salaries	$	92,414	$	92,116	$	91,612	$	88,161	$	91,089	$	298	0	%	$	1,325	1	%
Commissions and incentive compensation	46,131		51,793		49,923		57,026		53,751		(5,662)		(11)		(7,620)		(14)
Benefits	28,781		28,446		25,596		25,725		27,977		335		1		804		3
Total salaries and employee benefits	167,326		172,355		167,131		170,912		172,817		(5,029)		(3)		(5,491)		(3)
Software and equipment	24,250		22,810		23,708		22,029		20,866		1,440		6		3,384		16
Operating lease equipment depreciation	8,774		9,708		10,147		10,013		9,949		(934)		(10)		(1,175)		(12)
Occupancy, net	17,651		17,824		18,343		18,158		17,687		(173)		(1)		(36)		0
Data processing	8,010		7,505		7,207		7,104		6,920		505		7		1,090		16
Advertising and marketing	16,615		11,924		13,981		13,443		11,305		4,691		39		5,310		47
Professional fees	7,876		8,401		7,551		7,052		7,304		(525)		(6)		572		8
Amortization of other acquisition-related intangible assets	1,579		1,609		1,811		1,877		2,039		(30)		(2)		(460)		(23)
FDIC insurance	6,949		7,729		7,317		6,750		6,405		(780)		(10)		544		8
OREO expense, net	294		(1,032)		(641)		(1,531)		769		1,326		NM		(475)		(62)
Other:
Lending expenses, net of deferred originations costs	4,270		6,821		5,525		5,999		6,717		(2,551)		(37)		(2,447)		(36)
Travel and entertainment	3,897		2,676		3,782		3,668		1,918		1,221		46		1,979		NM
Miscellaneous	21,177		15,968		17,537		16,670		15,416		5,209		33		5,761		37



Total other	29,344		25,465		26,844		26,337		24,051		3,879		15		5,293		22
Total Non-Interest Expense	$	288,668	$	284,298	$	283,399	$	282,144	$	280,112	$	4,370	2	%	$	8,556	3	%

NM - Not meaningful.


	Six Months Ended
	Jun 30,		Jun 30,		$		%
(Dollars in thousands)	2022		2021		Change		Change
Salaries and employee benefits:
Salaries	$	184,530	$	182,142	$	2,388	1	%
Commissions and incentive compensation	97,924		115,118		(17,194)		(15)
Benefits	57,227		56,366		861		2
Total salaries and employee benefits	339,681		353,626		(13,945)		(4)
Software and equipment	47,060		41,778		5,282		13
Operating lease equipment depreciation	18,482		20,720		(2,238)		(11)
Occupancy, net	35,475		37,683		(2,208)		(6)
Data processing	15,515		12,968		2,547		20
Advertising and marketing	28,539		19,851		8,688		44
Professional fees	16,277		14,891		1,386		9
Amortization of other acquisition-related intangible assets	3,188		4,046		(858)		(21)
FDIC insurance	14,678		12,963		1,715		13
OREO expense, net	(738)		518		(1,256)		NM
Other:
Lending expenses, net of deferred originations costs	11,091		11,270		(179)		(2)
Travel and entertainment	6,573		2,598		3,975		NM
Miscellaneous	37,145		34,089		3,056		9



Total other	54,809		47,957		6,852		14
Total Non-Interest Expense	$	572,966	$	567,001	$	5,965	1	%

NM - Not meaningful.

TABLE 18: SUPPLEMENTAL NON-GAAP FINANCIAL MEASURES/RATIOS

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

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


	Three Months Ended															Six Months Ended
	Jun 30,			Mar 31,			Dec 31,			Sep 30,			Jun 30,			Jun 30,			Jun 30,
(Dollars and shares in thousands)	2022			2022			2021			2021			2021			2022			2021
Reconciliation of Non-GAAP Net Interest Margin and Efficiency Ratio:
(A) Interest Income (GAAP)	$	371,968		$	328,252		$	327,979		$	322,457		$	319,579		$	700,220		$	625,048
Taxable-equivalent adjustment:
- Loans	568			427			417			411			415			995			799
- Liquidity Management Assets	472			465			486			492			494			937			994
- Other Earning Assets	1			2			2			—			—			3			—
(B) Interest Income (non-GAAP)	$	373,009		$	329,146		$	328,884		$	323,360		$	320,488		$	702,155		$	626,841
(C) Interest Expense (GAAP)	34,164			28,958			32,003			34,961			39,989			63,122			83,563
(D) Net Interest Income (GAAP) (A minus C)	$	337,804		$	299,294		$	295,976		$	287,496		$	279,590		$	637,098		$	541,485
(E) Net Interest Income (non-GAAP) (B minus C)	$	338,845		$	300,188		$	296,881		$	288,399		$	280,499		$	639,033		$	543,278
Net interest margin (GAAP)	2.92		%	2.60		%	2.54		%	2.58		%	2.62		%	2.76		%	2.58		%
Net interest margin, fully taxable-equivalent (non-GAAP)	2.93			2.61			2.55			2.59			2.63			2.77			2.59
(F) Non-interest income	$	102,942		$	162,790		$	133,767		$	136,474		$	129,373		$	265,732		$	315,879
(G) (Losses) gains on investment securities, net	(7,797)			(2,782)			(1,067)			(2,431)			1,285			(10,579)			2,439
(H) Non-interest expense	288,668			284,298			283,399			282,144			280,112			572,966			567,001
Efficiency ratio (H/(D+F-G))	64.36		%	61.16		%	65.78		%	66.17		%	68.71		%	62.73		%	66.32		%
Efficiency ratio (non-GAAP) (H/(E+F-G))	64.21			61.04			65.64			66.03			68.56			62.60			66.18

Reconciliation of Non-GAAP Tangible Common Equity Ratio:
Total shareholders’ equity (GAAP)	$	4,727,623		$	4,492,256		$	4,498,688		$	4,410,317		$	4,339,011

Less: Non-convertible preferred stock (GAAP)	(412,500)			(412,500)			(412,500)			(412,500)			(412,500)
Less: Intangible assets (GAAP)	(679,827)			(682,101)			(683,456)			(675,910)			(678,333)
(I) Total tangible common shareholders’ equity (non-GAAP)	$	3,635,296		$	3,397,655		$	3,402,732		$	3,321,907		$	3,248,178
(J) Total assets (GAAP)	$	50,969,332		$	50,250,661		$	50,142,143		$	47,832,271		$	46,738,450
Less: Intangible assets (GAAP)	(679,827)			(682,101)			(683,456)			(675,910)			(678,333)
(K) Total tangible assets (non-GAAP)	$	50,289,505		$	49,568,560		$	49,458,687		$	47,156,361		$	46,060,117
Common equity to assets ratio (GAAP) (L/J)	8.5		%	8.1		%	8.1		%	8.4		%	8.4		%
Tangible common equity ratio (non-GAAP) (I/K)	7.2			6.9			6.9			7.0			7.1


	Three Months Ended															Six Months Ended
	Jun 30,			Mar 31,			Dec 31,			Sep 30,			Jun 30,			Jun 30,			Jun 30,
(Dollars and shares in thousands)	2022			2022			2021			2021			2021			2022			2021
Reconciliation of Non-GAAP Tangible Book Value per Common Share:
Total shareholders’ equity	$	4,727,623		$	4,492,256		$	4,498,688		$	4,410,317		$	4,339,011
Less: Preferred stock	(412,500)			(412,500)			(412,500)			(412,500)			(412,500)
(L) Total common equity	$	4,315,123		$	4,079,756		$	4,086,188		$	3,997,817		$	3,926,511
(M) Actual common shares outstanding	60,722			57,253			57,054			56,956			57,067
Book value per common share (L/M)	$	71.06		$	71.26		$	71.62		$	70.19		$	68.81
Tangible book value per common share (non-GAAP) (I/M)	59.87			59.34			59.64			58.32			56.92

Reconciliation of Non-GAAP Return on Average Tangible Common Equity:
(N) Net income applicable to common shares	$	87,522		$	120,400		$	91,766		$	102,146		$	98,118		$	207,922		$	244,275
Add: Intangible asset amortization	1,579			1,609			1,811			1,877			2,039			3,188			4,046
Less: Tax effect of intangible asset amortization	(445)			(430)			(505)			(509)			(553)			(870)			(1,068)
After-tax intangible asset amortization	$	1,134		$	1,179		$	1,306		$	1,368		$	1,486		$	2,318		$	2,978
(O) Tangible net income applicable to common shares (non-GAAP)	$	88,656		$	121,579		$	93,072		$	103,514		$	99,604		$	210,240		$	247,253
Total average shareholders’ equity	$	4,526,110		$	4,500,460		$	4,433,953		$	4,343,915		$	4,256,778		$	4,513,356		$	4,211,088
Less: Average preferred stock	(412,500)			(412,500)			(412,500)			(412,500)			(412,500)			(412,500)			(412,500)
(P) Total average common shareholders’ equity	$	4,113,610		$	4,087,960		$	4,021,453		$	3,931,415		$	3,844,278		$	4,100,856		$	3,798,588
Less: Average intangible assets	(681,091)			(682,603)			(677,470)			(677,201)			(679,535)			(681,843)			(680,166)
(Q) Total average tangible common shareholders’ equity (non-GAAP)	$	3,432,519		$	3,405,357		$	3,343,983		$	3,254,214		$	3,164,743		$	3,419,013		$	3,118,422
Return on average common equity, annualized (N/P)	8.53		%	11.94		%	9.05		%	10.31		%	10.24		%	10.22		%	12.97		%
Return on average tangible common equity, annualized (non-GAAP) (O/Q)	10.36			14.48			11.04			12.62			12.62			12.40			15.99

Reconciliation of Non-GAAP Pre-Tax, Pre-Provision Income, Adjusted for Changes in Fair Value of MSRs and Early Buy-out Loans Guaranteed by U.S. Government Agencies:
Income before taxes	$	131,661		$	173,680		$	137,045		$	149,742		$	144,150		$	305,341		$	351,009
Add: Provision for credit losses	20,417			4,106			9,299			(7,916)			(15,299)			24,523			(60,646)
Pre-tax income, excluding provision for credit losses (non-GAAP)	$	152,078		$	177,786		$	146,344		$	141,826		$	128,851		$	329,864		$	290,363
Less: Changes in fair value of MSRs and early buy-out loans guaranteed by U.S. government agencies	(445)			(43,365)			(6,656)			888			5,540			(43,810)			(12,505)
Pre-tax income, excluding provision for credit losses, adjusted for changes in fair value of MSRs and early buy-out loans guaranteed by U.S. government agencies (non-GAAP)	$	151,633		$	134,421		$	139,688		$	142,714		$	134,391		$	286,054		$	277,858

WINTRUST SUBSIDIARIES AND LOCATIONS

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

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

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

•FIRST Insurance Funding and Wintrust Life Finance, each a division of Lake Forest Bank & Trust Company, N.A., serve commercial and life insurance loan customers, respectively, throughout the United States.

•First Insurance Funding of Canada serves commercial insurance loan customers throughout Canada.

•Tricom, Inc. of Milwaukee provides high-yielding, short-term accounts receivable financing and value-added out-sourced administrative services, such as data processing of payrolls, billing and cash management services, to temporary staffing service clients located throughout the United States.

•Wintrust Mortgage, a division of Barrington Bank & Trust Company, N.A., engages primarily in the origination and purchase of residential mortgages for sale into the secondary market through origination offices located throughout the United States. Loans are also originated nationwide through relationships with wholesale and correspondent offices.

•Wintrust Investments, LLC is a broker-dealer providing a full range of private client and brokerage services to clients and correspondent banks located primarily in the Midwest.

•Great Lakes Advisors LLC provides money management services and advisory services to individual accounts.

•The Chicago Trust Company, N.A., a trust subsidiary, allows Wintrust to service customers’ trust and investment needs at each banking location.

•Wintrust Asset Finance offers direct leasing opportunities.

•CDEC provides Qualified Intermediary services (as defined by U.S. Treasury regulations) for taxpayers seeking to structure tax-deferred like-kind exchanges under Internal Revenue Code Section 1031.

FORWARD-LOOKING STATEMENTS

This document contains forward-looking statements within the meaning of federal securities laws. Forward-looking information can be identified through the use of words such as “intend,” “plan,” “project,” “expect,” “anticipate,” “believe,” “estimate,” “contemplate,” “possible,” “will,” “may,” “should,” “would” and “could.” Forward-looking statements and information are not historical facts, are premised on many factors and assumptions, and represent only management’s expectations, estimates and projections regarding future events. Similarly, these statements are not guarantees of future performance and involve certain risks and uncertainties that are difficult to predict, such as the impacts of the COVID-19 pandemic (including the continued emergence of variant strains), and which may include, but are not limited to, those listed below and the Risk Factors discussed under Item 1A of the Company’s 2021 Annual Report on Form 10-K and in any of the Company’s subsequent SEC filings. The Company intends such forward-looking statements to be covered by the safe harbor provisions for forward-looking statements contained in the Private Securities Litigation Reform Act of 1995, and is including this statement for purposes of invoking these safe harbor provisions. Such forward-looking statements may be deemed to include, among other things, statements relating to the Company’s future financial performance, the performance of its loan portfolio, the expected amount of future credit reserves and charge-offs, delinquency trends, growth plans, regulatory developments, securities that the Company may offer from time to time, and management’s long-term performance goals, as well as statements relating to the anticipated effects on financial condition and results of operations from expected developments or events, the Company’s business and growth strategies, including future acquisitions of banks, specialty finance or wealth management businesses, internal growth and plans to form additional de novo banks or branch offices.

Actual results could differ materially from those addressed in the forward-looking statements as a result of numerous factors, including the following:

•the severity, magnitude and duration of the COVID-19 pandemic, including the continued emergence of variant strains, and the direct and indirect impact of such pandemic, as well as responses to the pandemic by the government, businesses and consumers, on our operations and personnel, commercial activity and demand across our business and our customers’ businesses;

•the disruption of global, national, state and local economies associated with the COVID-19 pandemic, which could affect the Company’s liquidity and capital positions, impair the ability of our borrowers to repay outstanding loans, impair collateral values and further increase our allowance for credit losses;

•the impact of the COVID-19 pandemic on our financial results, including possible lost revenue and increased expenses (including the cost of capital), as well as possible goodwill impairment charges;

•economic conditions and events that affect the economy, housing prices, the job market and other factors that may adversely affect the Company’s liquidity and the performance of its loan portfolios, particularly in the markets in which it operates;

•negative effects suffered by us or our customers resulting from changes in U.S. trade policies;

•the extent of defaults and losses on the Company’s loan portfolio, which may require further increases in its allowance for credit losses;

•estimates of fair value of certain of the Company’s assets and liabilities, which could change in value significantly from period to period;

•the financial success and economic viability of the borrowers of our commercial loans;

•commercial real estate market conditions in the Chicago metropolitan area and southern Wisconsin;

•the extent of commercial and consumer delinquencies and declines in real estate values, which may require further increases in the Company’s allowance for credit losses;

•inaccurate assumptions in our analytical and forecasting models used to manage our loan portfolio;

•changes in the level and volatility of interest rates, the capital markets and other market indices (including developments and volatility arising from or related to the COVID-19 pandemic) that may affect, among other things, the Company’s liquidity and the value of its assets and liabilities;

•the interest rate environment, including a prolonged period of low interest rates or rising interest rates, either broadly or for some types of instruments, which may affect the Company’s net interest income and net interest margin, and which could materially adversely affect the Company’s profitability;

•competitive pressures in the financial services business which may affect the pricing of the Company’s loan and deposit products as well as its services (including wealth management services), which may result in loss of market share and reduced income from deposits, loans, advisory fees and income from other products;

•failure to identify and complete favorable acquisitions in the future or unexpected difficulties or developments related to the integration of the Company’s recent or future acquisitions;

•unexpected difficulties and losses related to FDIC-assisted acquisitions;

•harm to the Company’s reputation;

•any negative perception of the Company’s financial strength;

•ability of the Company to raise additional capital on acceptable terms when needed;

•disruption in capital markets, which may lower fair values for the Company’s investment portfolio;

•ability of the Company to use technology to provide products and services that will satisfy customer demands and create efficiencies in operations and to manage risks associated therewith;

•failure or breaches of our security systems or infrastructure, or those of third parties;

•security breaches, including denial of service attacks, hacking, social engineering attacks, malware intrusion or data corruption attempts and identity theft;

•adverse effects on our information technology systems resulting from failures, human error or cyberattacks (including ransomware);

•adverse effects of failures by our vendors to provide agreed upon services in the manner and at the cost agreed, particularly our information technology vendors;

•increased costs as a result of protecting our customers from the impact of stolen debit card information;

•accuracy and completeness of information the Company receives about customers and counterparties to make credit decisions;

•ability of the Company to attract and retain senior management experienced in the banking and financial services industries;

•environmental liability risk associated with lending activities;

•the impact of any claims or legal actions to which the Company is subject, including any effect on our reputation;

•losses incurred in connection with repurchases and indemnification payments related to mortgages and increases in reserves associated therewith;

•the loss of customers as a result of technological changes allowing consumers to complete their financial transactions without the use of a bank;

•the soundness of other financial institutions;

•the expenses and delayed returns inherent in opening new branches and de novo banks;

•liabilities, potential customer loss or reputational harm related to closings of existing branches;

•examinations and challenges by tax authorities, and any unanticipated impact of the Tax Act;

•changes in accounting standards, rules and interpretations, and the impact on the Company’s financial statements;

•the ability of the Company to receive dividends from its subsidiaries;

•uncertainty about the discontinued use of LIBOR and transition to an alternative rate;

•a decrease in the Company’s capital ratios, including as a result of declines in the value of its loan portfolios, or otherwise;

•legislative or regulatory changes, particularly changes in regulation of financial services companies and/or the products and services offered by financial services companies, including those changes that are in response to the COVID-19 pandemic, including without limitation the Coronavirus Aid, Relief, and Economic Security Act, the Economic Aid to Hard-Hit Small Businesses, Nonprofits and Venues Act, and the rules and regulations that may be promulgated thereunder;

•a lowering of our credit rating;

•changes in U.S. monetary policy and changes to the Federal Reserve’s balance sheet, including changes in response to the COVID-19 pandemic, persistent inflation or otherwise;

•regulatory restrictions upon our ability to market our products to consumers and limitations on our ability to profitably operate our mortgage business;

•increased costs of compliance, heightened regulatory capital requirements and other risks associated with changes in regulation and the regulatory environment;

•the impact of heightened capital requirements;

•increases in the Company’s FDIC insurance premiums, or the collection of special assessments by the FDIC;

•delinquencies or fraud with respect to the Company’s premium finance business;

•credit downgrades among commercial and life insurance providers that could negatively affect the value of collateral securing the Company’s premium finance loans;

•the Company’s ability to comply with covenants under its credit facility;

•fluctuations in the stock market, which may have an adverse impact on the Company’s wealth management business and brokerage operation; and

•widespread outages of operational, communication, or other systems, whether internal or provided by third parties, natural or other disasters (including acts of terrorism, armed hostilities and pandemics), and the effects of climate change could have an adverse effect on the Company’s financial condition and results of operations, lead to material disruption of the Company’s operations or the ability or willingness of clients to access the Company’s products and services.

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

CONFERENCE CALL, WEBCAST AND REPLAY

The Company will hold a conference call on Thursday, July 21, 2022 at 10:00 a.m. (Central Time) regarding second quarter and year-to-date 2022 earnings results. Individuals interested in participating in the call by addressing questions to management should register for the call to receive the dial-in numbers and unique PIN at the link included within the Company’s press release dated July 6, 2022 available at the Investor Relations, Investor News and Events, Press Releases link on its website at https://www.wintrust.com. A separate simultaneous audio-only webcast link is included within the press release referenced above. Registration for and a replay of the audio-only webcast with an accompanying slide presentation will be available at https://www.wintrust.com, Investor Relations, Investor News and Events, Presentations & Conference Calls. The text of the second quarter and year-to-date 2022 earnings press release will also be available on the home page of the Company’s website at https://www.wintrust.com and at the Investor Relations, Investor News and Events, Press Releases link on its website.

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