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

Rhea-AI Summary

Wintrust Financial Corporation announces record net income of $499.1 million for the first nine months of 2023, an increase of 33% compared to the same period in 2022. Total deposits grew by approximately $1 billion, or 9% annualized, and total loans increased by approximately $423 million, or 4% annualized, in the third quarter of 2023. Net interest income reached a record quarterly high of $462.4 million.

Positive

• Record net income of $499.1 million for the first nine months of 2023, an increase of 33% compared to the same period in 2022
• Total deposits grew by approximately $1 billion, or 9% annualized, in the third quarter of 2023
• Total loans increased by approximately $423 million, or 4% annualized, in the third quarter of 2023
• Record quarterly net interest income of $462.4 million

Negative

• None.

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

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

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

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

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

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

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

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

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

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

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

Graphs available at the following link:

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

SUMMARY OF RESULTS:

BALANCE SHEET

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

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

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

NET INTEREST INCOME

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

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

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

ASSET QUALITY

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

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

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

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

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

NON-INTEREST INCOME

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

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

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

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

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

NON-INTEREST EXPENSE

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

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

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

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

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

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

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

INCOME TAXES

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

BUSINESS UNIT SUMMARY

Community Banking

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

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

Specialty Finance

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

Wealth Management

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

ITEM IMPACTING COMPARATIVE FINANCIAL RESULTS

Business Combination

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

WINTRUST FINANCIAL CORPORATION

Key Operating Measures

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

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

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

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

WINTRUST FINANCIAL CORPORATION
Selected Financial Highlights

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

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

WINTRUST FINANCIAL CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CONDITION

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

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

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

TABLE 1: LOAN PORTFOLIO MIX AND GROWTH RATES

															% Growth From (1)
(Dollars in thousands)	Sep 30, 2023			Jun 30, 2023			Mar 31, 2023			Dec 31, 2022			Sep 30, 2022		Dec 31, 2022 (2)			Sep 30, 2022
Balance:
Mortgage loans held-for-sale, excluding early buy-out exercised loans guaranteed by U.S. government agencies	$	190,511		$	235,570		$	155,687		$	156,297		$	216,062	29	%		(12	)%
Mortgage loans held-for-sale, early buy-out exercised loans guaranteed by U.S. government agencies		114,297			103,158			146,806			143,638			160,098	(27	)		(29	)
Total mortgage loans held-for-sale	$	304,808		$	338,728		$	302,493		$	299,935		$	376,160	1	%		(19	)%
Core loans:
Commercial
Commercial and industrial	$	5,894,732		$	5,737,633		$	5,855,035		$	5,852,166		$	5,818,959	1	%		1	%
Asset-based lending		1,396,591			1,465,848			1,482,071			1,473,344			1,545,038	(7	)		(10	)
Municipal		676,915			653,117			655,301			668,235			608,234	2			11
Leases		2,109,628			1,925,767			1,904,137			1,840,928			1,582,359	20			33
PPP loans		13,744			15,337			17,195			28,923			43,658	(70	)		(69	)
Commercial real estate
Residential construction		51,550			51,689			69,998			76,877			66,957	(44	)		(23	)
Commercial construction		1,547,322			1,409,751			1,234,762			1,102,098			1,176,407	54			32
Land		294,901			298,996			292,293			307,955			282,147	(6	)		5
Office		1,422,748			1,404,422			1,392,040			1,337,176			1,269,729	9			12
Industrial		2,057,957			2,002,740			1,858,088			1,836,276			1,777,658	16			16
Retail		1,341,451			1,304,083			1,309,680			1,304,444			1,331,316	4			1
Multi-family		2,710,829			2,696,478			2,635,411			2,560,709			2,305,433	8			18
Mixed use and other		1,519,422			1,440,652			1,446,806			1,425,412			1,368,537	9			11
Home equity		343,258			336,974			337,016			332,698			328,822	4			4
Residential real estate
Residential real estate loans for investment		2,538,630			2,455,392			2,309,393			2,207,595			2,086,795	20			22
Residential mortgage loans, early buy-out eligible loans guaranteed by U.S. government agencies		97,911			117,024			119,301			80,701			57,161	29			71
Residential mortgage loans, early buy-out exercised loans guaranteed by U.S. government agencies		71,062			70,824			76,851			84,087			91,503	(21	)		(22	)
Total core loans	$	24,088,651		$	23,386,727		$	22,995,378		$	22,519,624		$	21,740,713	9	%		11	%
Niche loans:
Commercial
Franchise	$	1,074,162		$	1,091,164		$	1,131,913		$	1,169,623		$	1,118,478	(11	)%		(4	)%
Mortgage warehouse lines of credit		245,450			381,043			235,684			237,392			297,374	5			(17	)
Community Advantage - homeowners association		424,054			405,042			389,922			380,875			365,967	15			16
Insurance agency lending		890,197			925,520			905,727			897,678			879,183	(1	)		1
Premium Finance receivables
U.S. property & casualty insurance		5,815,346			5,900,228			5,043,486			5,103,820			4,983,795	19			17
Canada property & casualty insurance		907,401			862,470			695,394			745,639			729,545	29			24
Life insurance		7,931,808			8,039,273			8,125,802			8,090,998			8,004,856	(3	)		(1	)
Consumer and other		68,963			31,941			42,165			50,836			47,702	48			45
Total niche loans	$	17,357,381		$	17,636,681		$	16,570,093		$	16,676,861		$	16,426,900	5	%		6	%
Total loans, net of unearned income	$	41,446,032		$	41,023,408		$	39,565,471		$	39,196,485		$	38,167,613	8	%		9	%

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

TABLE 2: DEPOSIT PORTFOLIO MIX AND GROWTH RATES

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

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

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

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

TABLE 4: QUARTERLY AVERAGE BALANCES

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

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

TABLE 5: QUARTERLY NET INTEREST INCOME

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

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

TABLE 6: QUARTERLY NET INTEREST MARGIN

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

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

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

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

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

TABLE 8: INTEREST RATE SENSITIVITY

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

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

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

Ramp Scenario	+200 Basis Points			+100 Basis Points			-100 Basis Points			-200 Basis Points
Sep 30, 2023	1.7	%		1.2	%		(0.5	)%		(2.4	)%
Jun 30, 2023	2.9			1.8			(0.9	)		(3.4	)
Mar 31, 2023	3.0			1.7			(1.3	)		(3.4	)
Dec 31, 2022	5.6			3.0			(2.9	)		(6.8	)
Sep 30, 2022	6.5			3.6			(3.9	)		(8.6	)

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

TABLE 9: MATURITIES AND SENSITIVITIES TO CHANGES IN INTEREST RATES

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

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

Graph available at the following link:

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

Source: Bloomberg

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

		Basis Point (bp) Change in
		1-month SOFR		One- year CMT		Prime
Third Quarter 2023		18	bps	6	bps	25	bps
Second Quarter 2023		34		76		25
First Quarter 2023		44		-9		50
Fourth Quarter 2022		132		68		125
Third Quarter 2022		135		125		150

TABLE 10: ALLOWANCE FOR CREDIT LOSSES

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

TABLE 11: ALLOWANCE AND PROVISION FOR CREDIT LOSSES BY COMPONENT

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

TABLE 12: ALLOWANCE BY LOAN PORTFOLIO

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

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

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

TABLE 13: LOAN PORTFOLIO AGING

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

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

TABLE 14: NON-PERFORMING ASSETS⁽¹⁾

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

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

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

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

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

Other Real Estate Owned

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

TABLE 15: NON-INTEREST INCOME

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

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

NM - Not meaningful.

BOLI - Bank-owned life insurance.

TABLE 16: NON-INTEREST EXPENSE

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

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

NM - Not meaningful.

TABLE 17: SUPPLEMENTAL NON-GAAP FINANCIAL MEASURES/RATIOS

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

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

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

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

WINTRUST SUBSIDIARIES AND LOCATIONS

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

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

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

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

FORWARD-LOOKING STATEMENTS

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

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

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

CONFERENCE CALL, WEBCAST AND REPLAY

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

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

FAQ

What was the net income for the first nine months of 2023?

The net income for the first nine months of 2023 was $499.1 million.

What was the growth rate of total deposits in the third quarter of 2023?

Total deposits grew by approximately $1 billion, or 9% annualized, in the third quarter of 2023.

What was the increase in total loans in the third quarter of 2023?

Total loans increased by approximately $423 million, or 4% annualized, in the third quarter of 2023.

What was the net interest income for the third quarter of 2023?

The net interest income for the third quarter of 2023 was a record quarterly high of $462.4 million.