Wintrust Financial Corporation Reports Third Quarter and Year-to-Date Results

ROSEMONT, Ill, Oct. 21, 2024 (GLOBE NEWSWIRE) — Wintrust Financial Corporation (“Wintrust”, “the Company”, “we” or “our”) WTFC announced net income of $509.7 million or $7.67 per diluted common share for the first nine months of 2024 compared to net income of $499.1 million or $7.71 per diluted common share for the same period of 2023. Pre-tax, pre-provision income (non-GAAP) for the first nine months of 2024 totaled a record $778.1 million, compared to $751.3 million in the first nine months of 2023.

The Company recorded quarterly net income of $170.0 million or $2.47 per diluted common share for the third quarter of 2024 compared to net income of $152.4 million or $2.32 per diluted common share for the second quarter of 2024. Pre-tax, pre-provision income (non-GAAP) totaled $255.0 million as compared to $251.4 million for the second quarter of 2024.

Results of operations include those of Macatawa Bank Corporation (“Macatawa”), since the acquisition date of August 1, 2024.

Timothy S. Crane, President and Chief Executive Officer, commented, “Our net income for both the third quarter and year-to-date 2024 were driven by robust organic loan and deposit growth as well as a stable net interest margin. We believe we are well-positioned for strong financial performance as we continue our momentum in the fourth quarter of 2024 and into 2025.”

Additionally, Mr. Crane emphasized, “Net interest margin in the third quarter remained stable, decreasing one basis point as compared to the second quarter of 2024. We expect net interest margin to remain in the 3.50% range in the fourth quarter of 2024 and into 2025. Stable net interest margin coupled with continued balance sheet growth should result in net interest income growth. Focusing on growth of net interest income, disciplined expense control and maintaining our consistent credit standards should drive strong financial performance.”

Mr. Crane continued, “I want to recognize the efforts of our new Macatawa teammates and committed Wintrust team members on the seamless transaction and a solid beginning to integration activities. Macatawa offers a unique opportunity for Wintrust to expand into the desirable west Michigan market with a compatible management team and reputable brand. The quality core deposit franchise, excess liquidity and pristine credit quality coupled with aligned values make the acquisition an ideal fit for the Company. We are thrilled to bring our product offerings to Michigan and continue Macatawa’s commitment to customer service and community involvement.”

Highlights of the third quarter of 2024:
Comparative information to the second quarter of 2024, unless otherwise noted

Total loans increased by approximately $2.4 billion, which includes approximately $1.3 billion of acquired balances relating to Macatawa. Excluding Macatawa, total loans increased $1.1 billion or 10% annualized.
Total deposits increased by approximately $3.4 billion, which includes approximately $2.3 billion of acquired balances relating to Macatawa. Excluding Macatawa, total deposits increased $1.1 billion or 9% annualized.
Total assets increased by $4.0 billion, which includes approximately $2.9 billion of acquired assets relating to Macatawa. Excluding Macatawa, total assets increased $1.1 billion or 8% annualized.
Net interest income increased to $502.6 million in the third quarter of 2024 compared to $470.6 million in the second quarter of 2024, primarily due to average earning asset growth and the addition of Macatawa for the last two months of the third quarter.
- Net interest margin decreased by one basis point to 3.49% (3.51% on a fully taxable-equivalent basis, non-GAAP) during the third quarter of 2024.
Non-interest income was impacted by the following:
- Net gains on investment securities totaling $3.2 million in the third quarter of 2024 related to changes in the value of equity securities as compared to net losses of $4.3 million in the second quarter of 2024.
- Unfavorable mortgage servicing rights (“MSRs”) related revenue totaled $11.4 million in the third quarter of 2024 compared to favorable MSRs related revenue of $2.8 million in the second quarter of 2024.
Non-interest expense was impacted by the following:
- Macatawa added approximately $10.1 million of total operating expenses, including $3.0 million of core deposit intangible asset amortization.
- Incurred acquisition related costs of $1.6 million in the third quarter of 2024 as compared to $542,000 in the second quarter of 2024.
Provision for credit losses totaled $22.3 million in the third quarter of 2024, including a one-time acquisition-related Day 1 provision of approximately $15.5 million, as compared to a provision for credit losses of $40.1 million in the second quarter of 2024.
Tangible book value per common share (non-GAAP) increased to $76.15 as of September 30, 2024 as compared to $72.01 as of June 30, 2024. See Table 18 for reconciliation of non-GAAP measures.

Mr. Crane noted, “We are very pleased with our organic loan and deposit growth rates. Excess liquidity acquired in the Macatawa transaction was deployed by funding quality loan growth and reducing exposure to wholesale and brokered funding sources. Non-interest bearing deposits remained at 21% of total deposits at the end of the third quarter of 2024 and increased $708 million compared to the second quarter of 2024. We continue to leverage our customer relationships and market positioning to generate deposits, grow loans and build long term franchise value.”

Commenting on credit quality, Mr. Crane stated, “Our credit metrics were stable. Net charge-offs totaled $26.7 million, or 23 basis points of average total loans on an annualized basis, in the third quarter of 2024 and were spread primarily across the commercial and property and casualty premium finance receivables portfolios. This compared to net charge-offs totaling $30.0 million, or 28 basis points of average total loans on an annualized basis, in the second quarter of 2024. Approximately $18.3 million of charge-offs in the current quarter were previously reserved for in the second quarter of 2024. Non-performing loans totaled $179.7 million, or 0.38% of total loans, at the end of the third quarter of 2024 compared to $174.3 million, or 0.39% of total loans, at the end of the second quarter of 2024. Total non-performing assets comprised 0.30% of total assets as of September 30, 2024, a two basis point decline compared to June 30, 2024. We continue to be conservative and proactive in reviewing credit and maintaining our consistently strong credit standards. We believe that the Company’s reserves remain appropriate and we remain diligent in our review of credit.”

In summary, Mr. Crane noted, “Our record year continued as we built upon our strong momentum with the acquisition of Macatawa. Substantial loan growth in the third quarter and inclusion of Macatawa for all three months in the fourth quarter create positive revenue momentum. We have reduced our asset sensitivity to interest rates and therefore we believe that we are well positioned for the current interest rate environment and consensus forecast for additional interest rate cuts by the Federal Reserve. Steadfast commitment to credit quality, growing net interest income and increasing our long term franchise value remain our priority.”

The graphs below illustrate certain financial highlights of the third quarter of 2024 as well as historical financial performance. See “Supplemental Non-GAAP Financial Measures/Ratios” at Table 18 for additional information with respect to non-GAAP financial measures/ratios, including the reconciliations to the corresponding GAAP financial measures/ratios.

Graphs available at the following link: http://ml.globenewswire.com/Resource/Download/bc11950c-ec29-45c6-902d-8e0709edd6de

SUMMARY OF RESULTS:

BALANCE SHEET

Total assets increased $4.0 billion in the third quarter of 2024 as compared to the second quarter of 2024. Total loans increased by $2.4 billion as compared to the second quarter of 2024. The increase in total loans included approximately $1.3 billion of loans related to the Macatawa acquisition. The increase in loans was diversified across nearly all loan portfolios.

Total liabilities increased by $3.1 billion in the third quarter of 2024 as compared to the second quarter of 2024 primarily due to a $3.4 billion increase in total deposits. The increase in total deposits included approximately $2.3 billion related to the Macatawa acquisition. Excess liquidity acquired in the Macatawa transaction enabled the Company to reduce brokered funding reliance by $858 million. Non-interest bearing deposits increased $708 million in the third quarter of 2024 as compared to the second quarter of 2024. Non-interest bearing deposits as a percentage of total deposits was 21% at September 30, 2024, June 30, 2024 and March 31, 2024. The Company’s loans to deposits ratio was 91.6% on September 30, 2024 as compared to 93.0% as of June 30, 2024.

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 2024, net interest income totaled $502.6 million, an increase of $32.0 million as compared to the second quarter of 2024. The $32.0 million increase in net interest income in the third quarter of 2024 compared to the second quarter of 2024 was primarily due to a $3.1 billion increase in average earning assets, which included the addition of Macatawa in the third quarter. These benefits were partially offset by a one basis point decrease in the net interest margin.

Net interest margin was 3.49% (3.51% on a fully taxable-equivalent basis, non-GAAP) during the third quarter of 2024 compared to 3.50% (3.52% on a fully taxable-equivalent basis, non-GAAP) during the second quarter of 2024. The net interest margin decrease as compared to the second quarter of 2024 was primarily due to a one basis point decrease in the yield on earning assets and one basis point decrease in the net free funds contribution. These declines were partially offset by a one basis point decrease in rate paid on interest-bearing liabilities. The one basis point decrease in yield on earnings assets in the third quarter of 2024 as compared to the second quarter of 2024 was primarily due to an increase in average interest-bearing cash as a percentage of average quarterly earning assets associated with the Macatawa acquisition. The one basis point decrease in the rate paid on interest-bearing liabilities in the third quarter of 2024 as compared to the second quarter of 2024 was primarily due to a one basis point decrease in rate paid on interest-bearing deposits.

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

ASSET QUALITY

The allowance for credit losses totaled $436.2 million as of September 30, 2024, relatively unchanged compared to $437.6 million as of June 30, 2024. A provision for credit losses totaling $22.3 million was recorded for the third quarter of 2024 as compared to $40.1 million recorded in the second quarter of 2024. Provision for credit losses in the third quarter of 2024 included Day 1 provision for credit losses of approximately $15.5 million related to the Macatawa acquisition. The lower provision for credit losses recognized in the third quarter of 2024 compared to the second quarter of 2024 was primarily attributable to lower required specific reserves on nonaccrual loans, improved forecasted macroeconomic conditions, and, to a lesser extent, portfolio changes related to improved risk rating mix and shorter life of loan. For more information regarding the allowance for credit losses and provision for credit losses, see Table 11 in this report.

Management believes the allowance for credit losses is appropriate to account for expected credit losses. The Current Expected Credit Losses accounting standard requires the Company to estimate expected credit losses over the life of the Company’s financial assets as of the reporting date. There can be no assurances, however, that future losses will not significantly exceed the amounts provided for, thereby affecting future results of operations. A summary of the allowance for credit losses calculated for the loan components in each portfolio as of September 30, 2024, June 30, 2024, and March 31, 2024 is shown on Table 12 of this report.

Net charge-offs totaled $26.7 million in the third quarter of 2024, a decrease of $3.3 million as compared to $30.0 million of net charge-offs in the second quarter of 2024. Approximately $18.3 million of charge-offs in the current quarter were previously reserved for in the second quarter of 2024. Net charge-offs as a percentage of average total loans were 23 basis points in the third quarter of 2024 on an annualized basis compared to 28 basis points on an annualized basis in the second quarter of 2024. 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 $193.4 million and comprised 0.30% of total assets as of September 30, 2024, as compared to $194.0 million, or 0.32% of total assets, as of June 30, 2024. Non-performing loans totaled $179.7 million and comprised 0.38% of total loans at September 30, 2024, as compared to $174.3 million and 0.39% of total loans at June 30, 2024. The increase in the third quarter of 2024 was primarily due to an increase in certain credits within the commercial portfolios becoming nonaccrual. For more information regarding non-performing assets, see Table 14 in this report.

Credit metrics remained stable and at relatively low levels in the third quarter of 2024.

NON-INTEREST INCOME

Wealth management revenue increased by $1.8 million in the third quarter of 2024 as compared to the second quarter of 2024 primarily due to the Macatawa acquisition and increased asset management fees from higher assets under management during the period. Wealth management revenue is comprised of the trust and asset management revenue of Wintrust Private 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 $13.2 million in the third quarter of 2024 as compared to the second quarter of 2024 primarily due to $11.4 million unfavorable MSR related revenues, net of servicing hedge, in the third quarter of 2024 compared to $2.8 million favorable MSR related revenues in the second quarter of 2024 and slightly decreased production revenue due to reduced production margin. This was partially offset by a favorable adjustment to the Company’s held-for-sale portfolio of early buy-out exercised loans guaranteed by U.S. government agencies, which are held at fair value, of $3.5 million in the third quarter of 2024 compared to a $642,000 favorable adjustment in the second quarter of 2024. The Company monitors the relationship of these assets and seeks to minimize the earnings impact of fair value changes. For more information regarding mortgage banking revenue, see Table 16 in this report.

The Company recognized $3.2 million in net gains on investment securities in the third quarter of 2024 as compared to $4.3 million in net losses in the second quarter of 2024. The net gains in the third quarter of 2024 were primarily the result of unrealized gains on the Company’s equity investment securities with a readily determinable fair value.

Fees from covered call options decreased by $1.1 million in the third quarter of 2024 as compared to the second quarter of 2024. 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.

Other income decreased by $5.1 million in the third quarter of 2024 compared to the second quarter of 2024 primarily due to a gain recognized in the second quarter of 2024 associated with our property and casualty insurance premium finance receivable loan sale transaction.

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

NON-INTEREST EXPENSE

Non-interest expenses totaled $360.7 million in the third quarter of 2024, increasing $20.3 million as compared to $340.4 million in the second quarter of 2024. The Macatawa acquisition impacted this increase by approximately $10.1 million of non-interest expense associated with Macatawa, which included $3.0 million in amortization of other acquisition-related intangible assets in the third quarter of 2024.

Salaries and employee benefits expense increased by $12.7 million in the third quarter of 2024 as compared to the second quarter of 2024. The $12.7 million increase is primarily related to higher incentive compensation expense due to elevated bonus accruals in the third quarter of 2024 as well as increased salaries expense due to the Macatawa acquisition and additional staffing to support the Company’s growth.

Software and equipment expense increased $2.3 million in the third quarter of 2024 as compared to the second quarter of 2024 primarily due to software expense relating to upgrading and maintenance of information technology and security infrastructure as well as the Macatawa acquisition.

Advertising and marketing expenses in the third quarter of 2024 totaled $18.2 million, which is a $803,000 increase as compared to the second quarter of 2024. Marketing costs are incurred to promote the Company’s brand, commercial banking capabilities and the Company’s various products, to attract loans and deposits and to announce new branch openings as well as the expansion of the Company’s non-bank businesses. The level of marketing expenditures depends on the timing of sponsorship programs utilized which are determined based on the market area, targeted audience, competition and various other factors. Generally, these expenses are elevated in the second and third quarters of each year.

For more information regarding non-interest expense, see Table 17 in this report.

INCOME TAXES

The Company recorded income tax expense of $62.7 million in the third quarter compared to $59.0 million in the second quarter of 2024. The effective tax rates were 26.95% in the third quarter of 2024 compared to 27.90% in the second quarter of 2024. The effective tax rates were impacted by an overall lower level of provision for state income tax expense in the comparable periods.

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 2024, the community banking unit expanded its commercial, commercial real estate and residential real estate loan portfolios.

Mortgage banking revenue was $16.0 million for the third quarter of 2024, a decrease of $13.2 million as compared to the second quarter of 2024, primarily due to $11.4 million unfavorable MSR related revenues, net of servicing hedge, in the third quarter of 2024 compared to $2.8 million favorable MSR related revenues in the second quarter of 2024 and slightly decreased production revenue due to reduced production margin. This was partially offset by a favorable adjustment to the Company’s held-for-sale portfolio of early buy-out exercised loans guaranteed by U.S. government agencies, which are held at fair value, of $3.5 million in the third quarter of 2024 compared to a $642,000 favorable adjustment in the second quarter of 2024. Service charges on deposit accounts totaled $16.4 million in the third quarter of 2024, which was relatively stable compared to the second quarter of 2024. The Company’s gross commercial and commercial real estate loan pipelines remained solid as of September 30, 2024 indicating momentum for expected continued loan growth in the fourth quarter of 2024.

Specialty Finance

Through its specialty finance unit, the Company offers financing of insurance premiums for businesses and individuals, equipment financing through structured loans and lease products to customers in a variety of industries, accounts receivable financing and value-added, out-sourced administrative services and other services. Originations within the insurance premium financing receivables portfolios were $4.8 billion during the third quarter of 2024. Average balances increased by $259.8 million, as compared to the second quarter of 2024. The Company’s leasing portfolio balance remained stable in the third quarter of 2024, with its portfolio of assets, including capital leases, loans and equipment on operating leases, totaling $3.7 billion as of September 30, 2024 and June 30, 2024. Revenues from the Company’s out-sourced administrative services business were $1.5 million in the third quarter of 2024, which was relatively stable compared to the second quarter of 2024.

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, and securities brokerage services. See “Items Impacting Comparative Results,” regarding the sale of the Company’s Retirement Benefits Advisors (“RBA”) division during the first quarter of 2024. Wealth management revenue totaled $37.2 million in the third quarter of 2024, relatively stable as compared to the second quarter of 2024. At September 30, 2024, the Company’s wealth management subsidiaries had approximately $51.1 billion of assets under administration, which included $8.0 billion of assets owned by the Company and its subsidiary banks.

ITEMS IMPACTING COMPARATIVE FINANCIAL RESULTS

Business Combination

On August 1, 2024, the Company completed its previously announced acquisition of Macatawa, the parent company of Macatawa Bank. In conjunction with the completed acquisition, the Company issued approximately 4.7 million shares of common stock. Macatawa operates 26 full-service branches located throughout communities in Kent, Ottawa and northern Allegan counties in the state of Michigan. Macatawa offers a full range of banking, retail and commercial lending, wealth management and ecommerce services to individuals, businesses and governmental entities. As of August 1, 2024, Macatawa had approximately $2.9 billion in assets, $2.3 billion in deposits and $1.3 billion in loans. The Company preliminarily recorded goodwill of approximately $144.6 million on the purchase.

Division Sale

In the first quarter of 2024, the Company sold its RBA division and recorded a gain of approximately $20.0 million in other non-interest income from the sale.

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 2024, as compared to the second quarter of 2024 (sequential quarter) and third quarter of 2023 (linked quarter), are shown in the table below:

										% or⁽¹⁾ basis point (bp) change from 2nd Quarter 2024		% or basis point (bp) change from 3rd Quarter 2023
	Three Months Ended
(Dollars in thousands, except per share data)	Sep 30, 2024			Jun 30, 2024			Sep 30, 2023
Net income	$	170,001		$	152,388		$	164,198		12	%	4	%
Pre-tax income, excluding provision for credit losses (non-GAAP) ⁽²⁾		255,043			251,404			244,781		1		4
Net income per common share – Diluted		2.47			2.32			2.53		6		(2)
Cash dividends declared per common share		0.45			0.45			0.40		—		13
Net revenue ⁽³⁾		615,730			591,757			574,836		4		7
Net interest income		502,583			470,610			462,358		7		9
Net interest margin		3.49	%		3.50	%		3.60	%	(1)	bps	(11)	bps
Net interest margin – fully taxable-equivalent (non-GAAP) ⁽²⁾		3.51			3.52			3.62		(1)		(11)
Net overhead ratio ⁽⁴⁾		1.62			1.53			1.59		9		3
Return on average assets		1.11			1.07			1.20		4		(9)
Return on average common equity		11.63			11.61			13.35		2		(172)
Return on average tangible common equity (non-GAAP) ⁽²⁾		13.92			13.49			15.73		43		(181)
At end of period
Total assets	$	63,788,424		$	59,781,516		$	55,555,246		27	%	15	%
Total loans ⁽⁵⁾		47,067,447			44,675,531			41,446,032		21		14
Total deposits		51,404,966			48,049,026			44,992,686		28		14
Total shareholders’ equity		6,399,714			5,536,628			5,015,613		62		28

^{(1)   Period-end balance sheet percentage changes are annualized.
(2)   See Table 18: 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, 2024			Jun 30, 2024			Mar 31, 2024			Dec 31, 2023			Sep 30, 2023			Sep 30, 2024			Sep 30, 2023
Selected Financial Condition Data (at end of period):
Total assets	$	63,788,424		$	59,781,516		$	57,576,933		$	56,259,934		$	55,555,246
Total loans⁽¹⁾		47,067,447			44,675,531			43,230,706			42,131,831			41,446,032
Total deposits		51,404,966			48,049,026			46,448,858			45,397,170			44,992,686
Total shareholders’ equity		6,399,714			5,536,628			5,436,400			5,399,526			5,015,613
Selected Statements of Income Data:
Net interest income	$	502,583		$	470,610		$	464,194		$	469,974		$	462,358		$	1,437,387		$	1,367,890
Net revenue⁽²⁾		615,730			591,757			604,774			570,803			574,836			1,812,261			1,701,167
Net income		170,001			152,388			187,294			123,480			164,198			509,683			499,146
Pre-tax income, excluding provision for credit losses (non-GAAP)⁽³⁾		255,043			251,404			271,629			208,151			244,781			778,076			751,320
Net income per common share – Basic		2.51			2.35			2.93			1.90			2.57			7.79			7.82
Net income per common share – Diluted		2.47			2.32			2.89			1.87			2.53			7.67			7.71
Cash dividends declared per common share		0.45			0.45			0.45			0.40			0.40			1.35			1.20
Selected Financial Ratios and Other Data:
Performance Ratios:
Net interest margin		3.49	%		3.50	%		3.57	%		3.62	%		3.60	%		3.52	%		3.68	%
Net interest margin – fully taxable-equivalent (non-GAAP)⁽³⁾		3.51			3.52			3.59			3.64			3.62			3.54			3.70
Non-interest income to average assets		0.74			0.85			1.02			0.73			0.82			0.86			0.84
Non-interest expense to average assets		2.36			2.38			2.41			2.62			2.41			2.38			2.39
Net overhead ratio⁽⁴⁾		1.62			1.53			1.39			1.89			1.59			1.52			1.55
Return on average assets		1.11			1.07			1.35			0.89			1.20			1.17			1.26
Return on average common equity		11.63			11.61			14.42			9.93			13.35			12.52			13.91
Return on average tangible common equity (non-GAAP)⁽³⁾		13.92			13.49			16.75			11.73			15.73			14.69			16.43
Average total assets	$	60,915,283		$	57,493,184		$	55,602,695		$	55,017,075		$	54,381,981		$	58,014,347		$	53,028,199
Average total shareholders’ equity		5,990,429			5,450,173			5,440,457			5,066,196			5,083,883			5,628,346			5,008,648
Average loans to average deposits ratio		93.8	%		95.1	%		94.5	%		92.9	%		92.4	%		94.5	%		93.2	%
Period-end loans to deposits ratio		91.6			93.0			93.1			92.8			92.1
Common Share Data at end of period:
Market price per common share	$	108.53		$	98.56		$	104.39		$	92.75		$	75.50
Book value per common share		90.06			82.97			81.38			81.43			75.19
Tangible book value per common share (non-GAAP)⁽³⁾		76.15			72.01			70.40			70.33			64.07
Common shares outstanding		66,481,543			61,760,139			61,736,715			61,243,626			61,222,058
Other Data at end of period:
Common equity to assets ratio		9.4	%		8.6	%		8.7	%		8.9	%		8.3	%
Tangible common equity ratio (non-GAAP)⁽³⁾		8.1			7.5			7.6			7.7			7.1
Tier 1 leverage ratio⁽⁵⁾		9.4			9.3			9.4			9.3			9.2
Risk-based capital ratios:
Tier 1 capital ratio⁽⁵⁾		10.5			10.3			10.3			10.3			10.2
Common equity tier 1 capital ratio⁽⁵⁾		9.8			9.5			9.5			9.4			9.3
Total capital ratio⁽⁵⁾		12.2			12.1			12.2			12.1			12.0
Allowance for credit losses⁽⁶⁾	$	436,193		$	437,560		$	427,504		$	427,612		$	399,531
Allowance for loan and unfunded lending-related commitment losses to total loans		0.93	%		0.98	%		0.99	%		1.01	%		0.96	%
Number of:
Bank subsidiaries		16			15			15			15			15
Banking offices		203			177			176			174			174

^{(1)   Excludes mortgage loans held-for-sale.}
^{(2)   Net revenue is net interest income plus non-interest income.}
^{(3)   See Table 18: 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)	2024			2024			2024			2023			2023
Assets
Cash and due from banks	$	725,465		$	415,462		$	379,825		$	423,404		$	418,088
Federal funds sold and securities purchased under resale agreements		5,663			62			61			60			60
Interest-bearing deposits with banks		3,648,117			2,824,314			2,131,077			2,084,323			2,448,570
Available-for-sale securities, at fair value		3,912,232			4,329,957			4,387,598			3,502,915			3,611,835
Held-to-maturity securities, at amortized cost		3,677,420			3,755,924			3,810,015			3,856,916			3,909,150
Trading account securities		3,472			4,134			2,184			4,707			1,663
Equity securities with readily determinable fair value		125,310			112,173			119,777			139,268			134,310
Federal Home Loan Bank and Federal Reserve Bank stock		266,908			256,495			224,657			205,003			204,040
Brokerage customer receivables		16,662			13,682			13,382			10,592			14,042
Mortgage loans held-for-sale, at fair value		461,067			411,851			339,884			292,722			304,808
Loans, net of unearned income		47,067,447			44,675,531			43,230,706			42,131,831			41,446,032
Allowance for loan losses		(360,279	)		(363,719	)		(348,612	)		(344,235	)		(315,039	)
Net loans		46,707,168			44,311,812			42,882,094			41,787,596			41,130,993
Premises, software and equipment, net		772,002			722,295			744,769			748,966			747,501
Lease investments, net		270,171			275,459			283,557			281,280			275,152
Accrued interest receivable and other assets		1,721,090			1,671,334			1,580,142			1,551,899			1,674,681
Trade date securities receivable		551,031			—			—			690,722			—
Goodwill		800,780			655,955			656,181			656,672			656,109
Other acquisition-related intangible assets		123,866			20,607			21,730			22,889			24,244
Total assets	$	63,788,424		$	59,781,516		$	57,576,933		$	56,259,934		$	55,555,246
Liabilities and Shareholders’ Equity
Deposits:
Non-interest-bearing	$	10,739,132		$	10,031,440		$	9,908,183		$	10,420,401		$	10,347,006
Interest-bearing		40,665,834			38,017,586			36,540,675			34,976,769			34,645,680
Total deposits		51,404,966			48,049,026			46,448,858			45,397,170			44,992,686
Federal Home Loan Bank advances		3,171,309			3,176,309			2,676,751			2,326,071			2,326,071
Other borrowings		647,043			606,579			575,408			645,813			643,999
Subordinated notes		298,188			298,113			437,965			437,866			437,731
Junior subordinated debentures		253,566			253,566			253,566			253,566			253,566
Accrued interest payable and other liabilities		1,613,638			1,861,295			1,747,985			1,799,922			1,885,580
Total liabilities		57,388,710			54,244,888			52,140,533			50,860,408			50,539,633
Shareholders’ Equity:
Preferred stock		412,500			412,500			412,500			412,500			412,500
Common stock		66,546			61,825			61,798			61,269			61,244
Surplus		2,470,228			1,964,645			1,954,532			1,943,806			1,933,226
Treasury stock		(6,098	)		(5,760	)		(5,757	)		(2,217	)		(1,966	)
Retained earnings		3,748,715			3,615,616			3,498,475			3,345,399			3,253,332
Accumulated other comprehensive loss		(292,177	)		(512,198	)		(485,148	)		(361,231	)		(642,723	)
Total shareholders’ equity		6,399,714			5,536,628			5,436,400			5,399,526			5,015,613
Total liabilities and shareholders’ equity	$	63,788,424		$	59,781,516		$	57,576,933		$	56,259,934		$	55,555,246

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, 2024			Jun 30, 2024			Mar 31, 2024		Dec 31, 2023			Sep 30, 2023			Sep 30, 2024			Sep 30, 2023
Interest income
Interest and fees on loans	$	794,163		$	749,812		$	710,341	$	694,943		$	666,260		$	2,254,316		$	1,846,009
Mortgage loans held-for-sale		6,233			5,434			4,146		4,318			4,767			15,813			12,473
Interest-bearing deposits with banks		32,608			19,731			16,658		21,762			26,866			68,997			57,216
Federal funds sold and securities purchased under resale agreements		277			17			19		578			1,157			313			1,228
Investment securities		69,592			69,779			69,678		68,237			59,164			209,049			170,350
Trading account securities		11			13			18		15			6			42			26
Federal Home Loan Bank and Federal Reserve Bank stock		5,451			4,974			4,478		3,792			3,896			14,903			11,120
Brokerage customer receivables		269			219			175		203			284			663			844
Total interest income		908,604			849,979			805,513		793,848			762,400			2,564,096			2,099,266
Interest expense
Interest on deposits		362,019			335,703			299,532		285,390			262,783			997,254			621,080
Interest on Federal Home Loan Bank advances		26,254			24,797			22,048		18,316			17,436			73,099			53,970
Interest on other borrowings		9,013			8,700			9,248		9,557			9,384			26,961			25,723
Interest on subordinated notes		3,712			5,185			5,487		5,522			5,491			14,384			16,502
Interest on junior subordinated debentures		5,023			4,984			5,004		5,089			4,948			15,011			14,101
Total interest expense		406,021			379,369			341,319		323,874			300,042			1,126,709			731,376
Net interest income		502,583			470,610			464,194		469,974			462,358			1,437,387			1,367,890
Provision for credit losses		22,334			40,061			21,673		42,908			19,923			84,068			71,482
Net interest income after provision for credit losses		480,249			430,549			442,521		427,066			442,435			1,353,319			1,296,408
Non-interest income
Wealth management		37,224			35,413			34,815		33,275			33,529			107,452			97,332
Mortgage banking		15,974			29,124			27,663		7,433			27,395			72,761			75,640
Service charges on deposit accounts		16,430			15,546			14,811		14,522			14,217			46,787			40,728
Gains (losses) on investment securities, net		3,189			(4,282	)		1,326		2,484			(2,357	)		233			(959	)
Fees from covered call options		988			2,056			4,847		4,679			4,215			7,891			17,184
Trading (losses) gains, net		(130	)		70			677		(505	)		728			617			1,647
Operating lease income, net		15,335			13,938			14,110		14,162			13,863			43,383			39,136
Other		24,137			29,282			42,331		24,779			20,888			95,750			62,569
Total non-interest income		113,147			121,147			140,580		100,829			112,478			374,874			333,277
Non-interest expense
Salaries and employee benefits		211,261			198,541			195,173		193,971			192,338			604,975			554,042
Software and equipment		31,574			29,231			27,731		27,779			25,951			88,536			76,853
Operating lease equipment		10,518			10,834			10,683		10,694			12,020			32,035			31,669
Occupancy, net		19,945			19,585			19,086		18,102			21,304			58,616			58,966
Data processing		9,984			9,503			9,292		8,892			10,773			28,779			29,908
Advertising and marketing		18,239			17,436			13,040		17,166			18,169			48,715			47,909
Professional fees		9,783			9,967			9,553		8,768			8,887			29,303			25,990
Amortization of other acquisition-related intangible assets		4,042			1,122			1,158		1,356			1,408			6,322			4,142
FDIC insurance		10,512			10,429			14,537		43,677			9,748			35,478			27,425
OREO expenses, net		(938	)		(259	)		392		(1,559	)		120			(805	)		31
Other		35,767			33,964			32,500		33,806			29,337			102,231			92,912
Total non-interest expense		360,687			340,353			333,145		362,652			330,055			1,034,185			949,847
Income before taxes		232,709			211,343			249,956		165,243			224,858			694,008			679,838
Income tax expense		62,708			58,955			62,662		41,763			60,660			184,325			180,692
Net income	$	170,001		$	152,388		$	187,294	$	123,480		$	164,198		$	509,683		$	499,146
Preferred stock dividends		6,991			6,991			6,991		6,991			6,991			20,973			20,973
Net income applicable to common shares	$	163,010		$	145,397		$	180,303	$	116,489		$	157,207		$	488,710		$	478,173
Net income per common share – Basic	$	2.51		$	2.35		$	2.93	$	1.90		$	2.57		$	7.79		$	7.82
Net income per common share – Diluted	$	2.47		$	2.32		$	2.89	$	1.87		$	2.53		$	7.67		$	7.71
Cash dividends declared per common share	$	0.45		$	0.45		$	0.45	$	0.40		$	0.40		$	1.35		$	1.20
Weighted average common shares outstanding		64,888			61,839			61,481		61,236			61,213			62,743			61,119
Dilutive potential common shares		1,053			926			928		1,166			964			934			888
Average common shares and dilutive common shares		65,941			62,765			62,409		62,402			62,177			63,677			62,007

TABLE 1: LOAN PORTFOLIO MIX AND GROWTH RATES

											% Growth From
(Dollars in thousands)	Sep 30, 2024		Jun 30, 2024		Mar 31, 2024		Dec 31, 2023		Sep 30, 2023		Dec 31, 2023⁽¹⁾		Sep 30, 2023
Balance:
Mortgage loans held-for-sale, excluding early buy-out exercised loans guaranteed by U.S. government agencies	$	314,693	$	281,103	$	193,064	$	155,529	$	190,511	NM		65	%
Mortgage loans held-for-sale, early buy-out exercised loans guaranteed by U.S. government agencies		146,374		130,748		146,820		137,193		114,297	9		28
Total mortgage loans held-for-sale	$	461,067	$	411,851	$	339,884	$	292,722	$	304,808	77	%	51	%

Core loans:
Commercial
Commercial and industrial	$	6,768,382	$	6,226,336	$	6,105,968	$	5,804,629	$	5,894,732	22	%	15	%
Asset-based lending		1,709,685		1,465,867		1,355,255		1,433,250		1,396,591	26		22
Municipal		827,125		747,357		721,526		677,143		676,915	30		22
Leases		2,443,721		2,439,128		2,344,295		2,208,368		2,109,628	14		16
PPP loans		6,301		9,954		11,036		11,533		13,744	(61	)	(54	)
Commercial real estate
Residential construction		73,088		55,019		57,558		58,642		51,550	33		42
Commercial construction		1,984,240		1,866,701		1,748,607		1,729,937		1,547,322	20		28
Land		346,362		338,831		344,149		295,462		294,901	23		17
Office		1,675,286		1,585,312		1,566,748		1,455,417		1,422,748	20		18
Industrial		2,527,932		2,307,455		2,190,200		2,135,876		2,057,957	25		23
Retail		1,404,586		1,365,753		1,366,415		1,337,517		1,341,451	7		5
Multi-family		3,193,339		2,988,940		2,922,432		2,815,911		2,710,829	18		18
Mixed use and other		1,588,584		1,439,186		1,437,328		1,515,402		1,519,422	6		5
Home equity		427,043		356,313		340,349		343,976		343,258	32		24
Residential real estate
Residential real estate loans for investment		3,252,649		2,933,157		2,746,916		2,619,083		2,538,630	32		28
Residential mortgage loans, early buy-out eligible loans guaranteed by U.S. government agencies		92,355		88,503		90,911		92,780		97,911	(1	)	(6	)
Residential mortgage loans, early buy-out exercised loans guaranteed by U.S. government agencies		43,034		45,675		52,439		57,803		71,062	(34	)	(39	)
Total core loans	$	28,363,712	$	26,259,487	$	25,402,132	$	24,592,729	$	24,088,651	20	%	18	%

Niche loans:
Commercial
Franchise	$	1,191,686	$	1,150,460	$	1,122,302	$	1,092,532	$	1,074,162	12	%	11	%
Mortgage warehouse lines of credit		750,462		593,519		403,245		230,211		245,450	302		206
Community Advantage – homeowners association		501,645		491,722		475,832		452,734		424,054	14		18
Insurance agency lending		1,048,686		1,030,119		964,022		921,653		890,197	18		18
Premium Finance receivables
U.S. property & casualty insurance		6,253,271		6,142,654		6,113,993		5,983,103		5,815,346	6		8
Canada property & casualty insurance		878,410		958,099		826,026		920,426		907,401	(6	)	(3	)
Life insurance		7,996,899		7,962,115		7,872,033		7,877,943		7,931,808	2		1
Consumer and other		82,676		87,356		51,121		60,500		68,963	49		20
Total niche loans	$	18,703,735	$	18,416,044	$	17,828,574	$	17,539,102	$	17,357,381	9	%	8	%

Total loans, net of unearned income	$	47,067,447	$	44,675,531	$	43,230,706	$	42,131,831	$	41,446,032	16	%	14	%

^{(1) Annualized.}

TABLE 2: DEPOSIT PORTFOLIO MIX AND GROWTH RATES

																% Growth From
(Dollars in thousands)	Sep 30, 2024			Jun 30, 2024			Mar 31, 2024			Dec 31, 2023			Sep 30, 2023			Jun 30, 2024⁽¹⁾		Sep 30, 2023
Balance:
Non-interest-bearing	$	10,739,132		$	10,031,440		$	9,908,183		$	10,420,401		$	10,347,006		28	%	4	%
NOW and interest-bearing demand deposits		5,466,932			5,053,909			5,720,947			5,797,649			6,006,114		33		(9	)
Wealth management deposits⁽²⁾		1,303,354			1,490,711			1,347,817			1,614,499			1,788,099		(50	)	(27	)
Money market		17,713,726			16,320,017			15,617,717			15,149,215			14,478,504		34		22
Savings		6,183,249			5,882,179			5,959,774			5,790,334			5,584,294		20		11
Time certificates of deposit		9,998,573			9,270,770			7,894,420			6,625,072			6,788,669		31		47
Total deposits	$	51,404,966		$	48,049,026		$	46,448,858		$	45,397,170		$	44,992,686		28	%	14	%
Mix:
Non-interest-bearing		21	%		21	%		21	%		23	%		23	%
NOW and interest-bearing demand deposits		11			11			12			13			13
Wealth management deposits⁽²⁾		3			3			3			4			4
Money market		34			34			34			33			32
Savings		12			12			13			13			13
Time certificates of deposit		19			19			17			14			15
Total deposits		100	%		100	%		100	%		100	%		100	%

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

TABLE 3: TIME CERTIFICATES OF DEPOSIT MATURITY/RE-PRICING ANALYSIS
As of September 30, 2024

(Dollars in thousands)	Total Time Certificates of Deposit		Weighted-Average Rate of Maturing Time Certificates of Deposit
1-3 months	$	3,125,473	4.71	%
4-6 months		3,238,465	4.55
7-9 months		2,624,913	4.39
10-12 months		619,340	4.05
13-18 months		239,018	3.48
19-24 months		89,361	2.82
24+ months		62,003	2.29
Total	$	9,998,573	4.47	%

TABLE 4: QUARTERLY AVERAGE BALANCES

	Average Balance for three months ended,
	Sep 30,			Jun 30,			Mar 31,			Dec 31,			Sep 30,
(In thousands)	2024			2024			2024			2023			2023
Interest-bearing deposits with banks, securities purchased under resale agreements and cash equivalents⁽¹⁾	$	2,413,728		$	1,485,481		$	1,254,332		$	1,682,176		$	2,053,568
Investment securities⁽²⁾		8,276,576			8,203,764			8,349,796			7,971,068			7,706,285
FHLB and FRB stock		263,707			253,614			230,648			204,593			201,252
Liquidity management assets⁽³⁾	$	10,954,011		$	9,942,859		$	9,834,776		$	9,857,837		$	9,961,105
Other earning assets⁽³⁾⁽⁴⁾		17,542			15,257			15,081			14,821			17,879
Mortgage loans held-for-sale		376,251			347,236			290,275			279,569			319,099
Loans, net of unearned income⁽³⁾⁽⁵⁾		45,920,586			43,819,354			42,129,893			41,361,952			40,707,042
Total earning assets⁽³⁾	$	57,268,390		$	54,124,706		$	52,270,025		$	51,514,179		$	51,005,125
Allowance for loan and investment security losses		(383,736	)		(360,504	)		(361,734	)		(329,441	)		(319,491	)
Cash and due from banks		467,333			434,916			450,267			443,989			459,819
Other assets		3,563,296			3,294,066			3,244,137			3,388,348			3,236,528
Total assets	$	60,915,283		$	57,493,184		$	55,602,695		$	55,017,075		$	54,381,981

NOW and interest-bearing demand deposits	$	5,174,673		$	4,985,306		$	5,680,265		$	5,868,976		$	5,815,155
Wealth management deposits		1,362,747			1,531,865			1,510,203			1,704,099			1,512,765
Money market accounts		16,436,111			15,272,126			14,474,492			14,212,320			14,155,446
Savings accounts		6,096,746			5,878,844			5,792,118			5,676,155			5,472,535
Time deposits		9,598,109			8,546,172			7,148,456			6,645,980			6,495,906
Interest-bearing deposits	$	38,668,386		$	36,214,313		$	34,605,534		$	34,107,530		$	33,451,807
Federal Home Loan Bank advances		3,178,973			3,096,920			2,728,849			2,326,073			2,241,292
Other borrowings		622,792			587,262			627,711			633,673			657,454
Subordinated notes		298,135			410,331			437,893			437,785			437,658
Junior subordinated debentures		253,566			253,566			253,566			253,566			253,566
Total interest-bearing liabilities	$	43,021,852		$	40,562,392		$	38,653,553		$	37,758,627		$	37,041,777
Non-interest-bearing deposits		10,271,613			9,879,134			9,972,646			10,406,585			10,612,009
Other liabilities		1,631,389			1,601,485			1,536,039			1,785,667			1,644,312
Equity		5,990,429			5,450,173			5,440,457			5,066,196			5,083,883
Total liabilities and shareholders’ equity	$	60,915,283		$	57,493,184		$	55,602,695		$	55,017,075		$	54,381,981

Net free funds/contribution⁽⁶⁾	$	14,246,538		$	13,562,314		$	13,616,472		$	13,755,552		$	13,963,348

^{(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 18: 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)	2024			2024			2024			2023			2023
Interest income:
Interest-bearing deposits with banks, securities purchased under resale agreements and cash equivalents	$	32,885		$	19,748		$	16,677		$	22,340		$	28,022
Investment securities		70,260			70,346			70,228			68,812			59,737
FHLB and FRB stock		5,451			4,974			4,478			3,792			3,896
Liquidity management assets⁽¹⁾	$	108,596		$	95,068		$	91,383		$	94,944		$	91,655
Other earning assets⁽¹⁾		282			235			198			222			291
Mortgage loans held-for-sale		6,233			5,434			4,146			4,318			4,767
Loans, net of unearned income⁽¹⁾		796,637			752,117			712,587			697,093			668,183
Total interest income	$	911,748		$	852,854		$	808,314		$	796,577		$	764,896

Interest expense:
NOW and interest-bearing demand deposits	$	30,971		$	32,719		$	34,896		$	38,124		$	36,001
Wealth management deposits		10,158			10,294			10,461			12,076			9,350
Money market accounts		167,382			155,100			137,984			130,252			124,742
Savings accounts		42,892			41,063			39,071			36,463			31,784
Time deposits		110,616			96,527			77,120			68,475			60,906
Interest-bearing deposits	$	362,019		$	335,703		$	299,532		$	285,390		$	262,783
Federal Home Loan Bank advances		26,254			24,797			22,048			18,316			17,436
Other borrowings		9,013			8,700			9,248			9,557			9,384
Subordinated notes		3,712			5,185			5,487			5,522			5,491
Junior subordinated debentures		5,023			4,984			5,004			5,089			4,948
Total interest expense	$	406,021		$	379,369		$	341,319		$	323,874		$	300,042

Less: Fully taxable-equivalent adjustment		(3,144	)		(2,875	)		(2,801	)		(2,729	)		(2,496	)
Net interest income (GAAP)⁽²⁾		502,583			470,610			464,194			469,974			462,358
Fully taxable-equivalent adjustment		3,144			2,875			2,801			2,729			2,496
Net interest income, fully taxable-equivalent (non-GAAP)⁽²⁾	$	505,727		$	473,485		$	466,995		$	472,703		$	464,854

^{(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 18: 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, 2024		Jun 30, 2024		Mar 31, 2024		Dec 31, 2023		Sep 30, 2023
Yield earned on:
Interest-bearing deposits with banks, securities purchased under resale agreements and cash equivalents	5.42	%	5.35	%	5.35	%	5.27	%	5.41	%
Investment securities	3.38		3.45		3.38		3.42		3.08
FHLB and FRB stock	8.22		7.89		7.81		7.35		7.68
Liquidity management assets	3.94	%	3.85	%	3.74	%	3.82	%	3.65	%
Other earning assets	6.38		6.23		5.25		5.92		6.47
Mortgage loans held-for-sale	6.59		6.29		5.74		6.13		5.93
Loans, net of unearned income	6.90		6.90		6.80		6.69		6.51
Total earning assets	6.33	%	6.34	%	6.22	%	6.13	%	5.95	%

Rate paid on:
NOW and interest-bearing demand deposits	2.38	%	2.64	%	2.47	%	2.58	%	2.46	%
Wealth management deposits	2.97		2.70		2.79		2.81		2.45
Money market accounts	4.05		4.08		3.83		3.64		3.50
Savings accounts	2.80		2.81		2.71		2.55		2.30
Time deposits	4.58		4.54		4.34		4.09		3.72
Interest-bearing deposits	3.72	%	3.73	%	3.48	%	3.32	%	3.12	%
Federal Home Loan Bank advances	3.29		3.22		3.25		3.12		3.09
Other borrowings	5.76		5.96		5.92		5.98		5.66
Subordinated notes	4.95		5.08		5.04		5.00		4.98
Junior subordinated debentures	7.88		7.91		7.94		7.96		7.74
Total interest-bearing liabilities	3.75	%	3.76	%	3.55	%	3.40	%	3.21	%

Interest rate spread⁽¹⁾⁽²⁾	2.58	%	2.58	%	2.67	%	2.73	%	2.74	%
Less: Fully taxable-equivalent adjustment	(0.02	)	(0.02	)	(0.02	)	(0.02	)	(0.02	)
Net free funds/contribution⁽³⁾	0.93		0.94		0.92		0.91		0.88
Net interest margin (GAAP)⁽²⁾	3.49	%	3.50	%	3.57	%	3.62	%	3.60	%
Fully taxable-equivalent adjustment	0.02		0.02		0.02		0.02		0.02
Net interest margin, fully taxable-equivalent (non-GAAP)⁽²⁾	3.51	%	3.52	%	3.59	%	3.64	%	3.62	%

^{(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 18: 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 fornine months ended,						Interest fornine months ended,						Yield/Rate fornine months ended,
(Dollars in thousands)	Sep 30, 2024			Sep 30, 2023			Sep 30, 2024			Sep 30, 2023			Sep 30, 2024		Sep 30, 2023
Interest-bearing deposits with banks, securities purchased under resale agreements and cash equivalents⁽¹⁾	$	1,720,387		$	1,584,120		$	69,310		$	58,443		5.38	%	4.93	%
Investment securities⁽²⁾		8,276,711			7,637,612			210,834			172,025		3.40		3.01
FHLB and FRB stock		249,375			219,442			14,903			11,120		7.98		6.77
Liquidity management assets⁽³⁾⁽⁴⁾	$	10,246,473		$	9,441,174		$	295,047		$	241,588		3.85	%	3.42	%
Other earning assets^(3)(4)(5)		15,966			17,906			715			876		5.98		6.54
Mortgage loans held-for-sale		338,061			299,426			15,813			12,473		6.25		5.57
Loans, net of unearned income^(3)(4)(6)		43,963,779			39,974,840			2,261,341			1,851,686		6.87		6.19
Total earning assets⁽⁴⁾	$	54,564,279		$	49,733,346		$	2,572,916		$	2,106,623		6.30	%	5.66	%
Allowance for loan and investment security losses		(368,713	)		(301,742	)
Cash and due from banks		450,899			476,490
Other assets		3,367,882			3,120,105
Total assets	$	58,014,347		$	53,028,199

NOW and interest-bearing demand deposits	$	5,279,697		$	5,544,488		$	98,586		$	83,949		2.49	%	2.02	%
Wealth management deposits		1,467,886			1,739,427			30,913			30,705		2.81		2.36
Money market accounts		15,398,045			13,480,887			460,466			299,649		3.99		2.97
Savings accounts		5,923,205			5,172,174			123,026			73,203		2.77		1.89
Time deposits		8,435,172			5,718,850			284,263			133,574		4.50		3.12
Interest-bearing deposits	$	36,504,005		$	31,655,826		$	997,254		$	621,080		3.65	%	2.62	%
Federal Home Loan Bank advances		3,002,228			2,313,571			73,099			53,970		3.25		3.12
Other borrowings		612,627			628,915			26,961			25,723		5.88		5.47
Subordinated notes		381,813			437,543			14,384			16,502		5.03		5.04
Junior subordinated debentures		253,566			253,566			15,011			14,101		7.91		7.44
Total interest-bearing liabilities	$	40,754,239		$	35,289,421		$	1,126,709		$	731,376		3.69	%	2.77	%
Non-interest-bearing deposits		10,041,972			11,224,841
Other liabilities		1,589,790			1,505,289
Equity		5,628,346			5,008,648
Total liabilities and shareholders’ equity	$	58,014,347		$	53,028,199
Interest rate spread⁽⁴⁾⁽⁷⁾													2.61	%	2.89	%
Less: Fully taxable-equivalent adjustment								(8,820	)		(7,357	)	(0.02	)	(0.02	)
Net free funds/contribution⁽⁸⁾	$	13,810,040		$	14,443,925								0.93		0.81
Net interest income/margin (GAAP)⁽⁴⁾							$	1,437,387		$	1,367,890		3.52	%	3.68	%
Fully taxable-equivalent adjustment								8,820			7,357		0.02		0.02
Net interest income/margin, fully taxable-equivalent (non-GAAP)⁽⁴⁾							$	1,446,207		$	1,375,247		3.54	%	3.70	%

^{(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 18: 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, 2024	1.2	%	1.1	%	0.4	%	(0.9	)%
Jun 30, 2024	1.5		1.0		0.6		(0.0	)
Mar 31, 2024	1.9		1.4		1.5		1.6
Dec 31, 2023	2.6		1.8		0.4		(0.7	)
Sep 30, 2023	3.3		1.9		(2.0	)	(5.2	)

Ramp Scenario	+200 Basis Points		+100 Basis Points		-100 Basis Points		-200 Basis Points
Sep 30, 2024	1.6	%	1.2	%	0.7	%	0.5	%
Jun 30, 2024	1.2		1.0		0.9		1.0
Mar 31, 2024	0.8		0.6		1.3		2.0
Dec 31, 2023	1.6		1.2		(0.3	)	(1.5	)
Sep 30, 2023	1.7		1.2		(0.5	)	(2.4	)

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

TABLE 9: MATURITIES AND SENSITIVITIES TO CHANGES IN INTEREST RATES

	Loans repricing or contractual maturity period
As of September 30, 2024	One year or less			From one to five years		From five to fifteen years		After fifteen years		Total
(In thousands)	One year or less			From one to five years		From five to fifteen years		After fifteen years		Total
Commercial
Fixed rate	$	442,214		$	3,352,273	$	1,914,643	$	23,532	$	5,732,662
Variable rate		9,513,446			1,585		—		—		9,515,031
Total commercial	$	9,955,660		$	3,353,858	$	1,914,643	$	23,532	$	15,247,693
Commercial real estate
Fixed rate	$	570,054		$	2,866,473	$	420,951	$	55,521	$	3,912,999
Variable rate		8,868,451			11,899		68		—		8,880,418
Total commercial real estate	$	9,438,505		$	2,878,372	$	421,019	$	55,521	$	12,793,417
Home equity
Fixed rate	$	8,588		$	1,593	$	—	$	22	$	10,203
Variable rate		416,840			—		—		—		416,840
Total home equity	$	425,428		$	1,593	$	—	$	22	$	427,043
Residential real estate
Fixed rate	$	7,088		$	5,468	$	75,934	$	1,086,008	$	1,174,498
Variable rate		92,075			512,374		1,609,091		—		2,213,540
Total residential real estate	$	99,163		$	517,842	$	1,685,025	$	1,086,008	$	3,388,038
Premium finance receivables – property & casualty
Fixed rate	$	7,049,022		$	82,659	$	—	$	—	$	7,131,681
Variable rate		—			—		—		—		—
Total premium finance receivables – property & casualty	$	7,049,022		$	82,659	$	—	$	—	$	7,131,681
Premium finance receivables – life insurance
Fixed rate	$	160,090		$	444,534	$	4,000	$	4,654	$	613,278
Variable rate		7,383,621			—		—		—		7,383,621
Total premium finance receivables – life insurance	$	7,543,711		$	444,534	$	4,000	$	4,654	$	7,996,899
Consumer and other
Fixed rate	$	17,226		$	7,218	$	841	$	998	$	26,283
Variable rate		56,393			—		—		—		56,393
Total consumer and other	$	73,619		$	7,218	$	841	$	998	$	82,676

Total per category
Fixed rate	$	8,254,282		$	6,760,218	$	2,416,369	$	1,170,735	$	18,601,604
Variable rate		26,330,826			525,858		1,609,159		—		28,465,843
Total loans, net of unearned income	$	34,585,108		$	7,286,076	$	4,025,528	$	1,170,735	$	47,067,447
Less: Existing cash flow hedging derivatives		(6,000,000	)
Less: Cash flow hedging derivatives effective in Q4 2024		(700,000	)
Total loans repricing or maturing in one year or less, adjusted for cash flow hedging activity	$	27,885,108

Variable Rate Loan Pricing by Index:
SOFR tenors										$	17,155,288
12- month CMT											6,242,461
Prime											3,545,047
Fed Funds											951,119
Ameribor tenors											237,486
Other U.S. Treasury tenors											196,990
Other											137,452
Total variable rate										$	28,465,843

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

Graph available at the following link: http://ml.globenewswire.com/Resource/Download/9d3dafaf-55b5-40b8-9717-0f757fa58f36

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 $13.7 billion tied to one-month SOFR and $6.2 billion tied to twelve-month CMT. The above chart shows:

	Basis Point (bp) Change in
	1-month SOFR			12- month CMT			Prime
Third Quarter 2024	(49	)	bps	(111	)	bps	(50	)	bps
Second Quarter 2024	1			6			0
First Quarter 2024	(2	)		24			0
Fourth Quarter 2023	3			(67	)		0
Third Quarter 2023	18			6			25

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)	2024			2024			2024			2023			2023			2024			2023
Allowance for credit losses at beginning of period	$	437,560		$	427,504		$	427,612		$	399,531		$	387,786		$	427,612		$	357,936
Cumulative effect adjustment from the adoption of ASU 2022-02		—			—			—			—			—			—			741
Provision for credit losses – Other		6,787			40,061			21,673			42,908			19,923			68,521			71,482
Provision for credit losses – Day 1 on non-PCD assets acquired during the period		15,547			—			—			—			—			15,547			—
Initial allowance for credit losses recognized on PCD assets acquired during the period		3,004			—			—			—			—			3,004			—
Other adjustments		30			(19	)		(31	)		62			(60	)		(20	)		(15	)
Charge-offs:
Commercial		22,975			9,584			11,215			5,114			2,427			43,774			10,599
Commercial real estate		95			15,526			5,469			5,386			1,713			21,090			9,842
Home equity		—			—			74			—			227			74			227
Residential real estate		—			23			38			114			78			61			78
Premium finance receivables – property & casualty		7,790			9,486			6,938			6,706			5,830			24,214			14,978
Premium finance receivables – life insurance		4			—			—			—			18			4			173
Consumer and other		154			137			107			148			184			398			447
Total charge-offs		31,018			34,756			23,841			17,468			10,477			89,615			36,344
Recoveries:
Commercial		649			950			479			592			1,162			2,078			2,059
Commercial real estate		30			90			31			92			243			151			368
Home equity		101			35			29			34			33			165			105
Residential real estate		5			8			2			10			1			15			11
Premium finance receivables – property & casualty		3,436			3,658			1,519			1,820			906			8,613			3,110
Premium finance receivables – life insurance		41			5			8			7			—			54			9
Consumer and other		21			24			23			24			14			68			69
Total recoveries		4,283			4,770			2,091			2,579			2,359			11,144			5,731
Net charge-offs		(26,735	)		(29,986	)		(21,750	)		(14,889	)		(8,118	)		(78,471	)		(30,613	)
Allowance for credit losses at period end	$	436,193		$	437,560		$	427,504		$	427,612		$	399,531		$	436,193		$	399,531

Annualized net charge-offs (recoveries) by category as a percentage of its own respective category’s average:
Commercial		0.61	%		0.25	%		0.33	%		0.14	%		0.04	%		0.41	%		0.09	%
Commercial real estate		0.00			0.53			0.19			0.19			0.05			0.23			0.12
Home equity		(0.10	)		(0.04	)		0.05			(0.04	)		0.23			(0.03	)		0.05
Residential real estate		0.00			0.00			0.01			0.02			0.01			0.00			0.00
Premium finance receivables – property & casualty		0.24			0.33			0.32			0.29			0.29			0.30			0.26
Premium finance receivables – life insurance		0.00			(0.00	)		(0.00	)		(0.00	)		0.00			(0.00	)		0.00
Consumer and other		0.63			0.56			0.42			0.58			0.65			0.54			0.60
Total loans, net of unearned income		0.23	%		0.28	%		0.21	%		0.14	%		0.08	%		0.24			0.10	%

Loans at period end	$	47,067,447		$	44,675,531		$	43,230,706		$	42,131,831		$	41,446,032
Allowance for loan losses as a percentage of loans at period end		0.77	%		0.81	%		0.81	%		0.82	%		0.76	%
Allowance for loan and unfunded lending-related commitment losses as a percentage of loans at period end		0.93			0.98			0.99			1.01			0.96

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)	2024			2024			2024			2023			2023			2024			2023
Provision for loan losses – Other	$	6,782		$	45,111		$	26,159		$	44,023		$	20,717		$	78,052		$	74,753
Provision for credit losses – Day 1 on non-PCD assets acquired during the period		15,547			—			—			—			—			15,547			—
Provision for unfunded lending-related commitments losses – Other		17			(5,212	)		(4,468	)		(1,081	)		(769	)		(9,663	)		(3,164	)
Provision for held-to-maturity securities losses		(12	)		162			(18	)		(34	)		(25	)		132			(107	)
Provision for credit losses	$	22,334		$	40,061		$	21,673		$	42,908		$	19,923		$	84,068		$	71,482

Allowance for loan losses	$	360,279		$	363,719		$	348,612		$	344,235		$	315,039
Allowance for unfunded lending-related commitments losses		75,435			73,350			78,563			83,030			84,111
Allowance for loan losses and unfunded lending-related commitments losses		435,714			437,069			427,175			427,265			399,150
Allowance for held-to-maturity securities losses		479			491			329			347			381
Allowance for credit losses	$	436,193		$	437,560		$	427,504		$	427,612		$	399,531

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, 2024, June 30, 2024 and March 31, 2024.

	As of Sep 30, 2024						As of Jun 30, 2024						As of Mar 31, 2024
(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	$	15,247,693	$	171,598	1.13	%	$	14,154,462	$	181,991	1.29	%	$	13,503,481	$	166,518	1.23	%
Commercial real estate:
Construction and development		2,403,690		97,949	4.07			2,260,551		93,154	4.12			2,150,314		96,052	4.47
Non-construction		10,389,727		133,195	1.28			9,686,646		130,574	1.35			9,483,123		130,000	1.37
Home equity		427,043		8,823	2.07			356,313		7,242	2.03			340,349		7,191	2.11
Residential real estate		3,388,038		9,745	0.29			3,067,335		8,773	0.29			2,890,266		13,701	0.47
Premium finance receivables
Property and casualty insurance		7,131,681		13,045	0.18			7,100,753		14,053	0.20			6,940,019		12,645	0.18
Life insurance		7,996,899		698	0.01			7,962,115		693	0.01			7,872,033		685	0.01
Consumer and other		82,676		661	0.80			87,356		589	0.67			51,121		383	0.75
Total loans, net of unearned income	$	47,067,447	$	435,714	0.93	%	$	44,675,531	$	437,069	0.98	%	$	43,230,706	$	427,175	0.99	%

Total core loans⁽¹⁾	$	28,363,712	$	396,394	1.40	%	$	26,259,487	$	398,494	1.52	%	$	25,402,132	$	382,372	1.51	%
Total niche loans⁽¹⁾		18,703,735		39,320	0.21			18,416,044		38,575	0.21			17,828,574		44,803	0.25

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

TABLE 13: LOAN PORTFOLIO AGING

(In thousands)	Sep 30, 2024		Jun 30, 2024		Mar 31, 2024		Dec 31, 2023		Sep 30, 2023
Loan Balances:
Commercial
Nonaccrual	$	63,826	$	51,087	$	31,740	$	38,940	$	43,569
90+ days and still accruing		20		304		27		98		200
60-89 days past due		32,560		16,485		30,248		19,488		22,889
30-59 days past due		46,057		36,358		77,715		85,743		35,681
Current		15,105,230		14,050,228		13,363,751		12,687,784		12,623,134
Total commercial	$	15,247,693	$	14,154,462	$	13,503,481	$	12,832,053	$	12,725,473
Commercial real estate
Nonaccrual	$	42,071	$	48,289	$	39,262	$	35,459	$	17,043
90+ days and still accruing		225		—		—		—		1,092
60-89 days past due		13,439		6,555		16,713		8,515		7,395
30-59 days past due		48,346		38,065		32,998		20,634		60,984
Current		12,689,336		11,854,288		11,544,464		11,279,556		10,859,666
Total commercial real estate	$	12,793,417	$	11,947,197	$	11,633,437	$	11,344,164	$	10,946,180
Home equity
Nonaccrual	$	1,122	$	1,100	$	838	$	1,341	$	1,363
90+ days and still accruing		—		—		—		—		—
60-89 days past due		1,035		275		212		62		219
30-59 days past due		2,580		1,229		1,617		2,263		1,668
Current		422,306		353,709		337,682		340,310		340,008
Total home equity	$	427,043	$	356,313	$	340,349	$	343,976	$	343,258
Residential real estate
Early buy-out loans guaranteed by U.S. government agencies⁽¹⁾	$	135,389	$	134,178	$	143,350	$	150,583	$	168,973
Nonaccrual		17,959		18,198		17,901		15,391		16,103
90+ days and still accruing		—		—		—		—		—
60-89 days past due		6,364		1,977		—		2,325		1,145
30-59 days past due		2,160		130		24,523		22,942		904
Current		3,226,166		2,912,852		2,704,492		2,578,425		2,520,478
Total residential real estate	$	3,388,038	$	3,067,335	$	2,890,266	$	2,769,666	$	2,707,603
Premium finance receivables – property & casualty
Nonaccrual	$	36,079	$	32,722	$	32,648	$	27,590	$	26,756
90+ days and still accruing		18,235		22,427		25,877		20,135		16,253
60-89 days past due		18,740		29,925		15,274		23,236		16,552
30-59 days past due		30,204		45,927		59,729		50,437		31,919
Current		7,028,423		6,969,752		6,806,491		6,782,131		6,631,267
Total Premium finance receivables – property & casualty	$	7,131,681	$	7,100,753	$	6,940,019	$	6,903,529	$	6,722,747
Premium finance receivables – life insurance
Nonaccrual	$	—	$	—	$	—	$	—	$	—
90+ days and still accruing		—		—		—		—		10,679
60-89 days past due		10,902		4,118		32,482		16,206		41,894
30-59 days past due		74,432		17,693		100,137		45,464		14,972
Current		7,911,565		7,940,304		7,739,414		7,816,273		7,864,263
Total Premium finance receivables – life insurance	$	7,996,899	$	7,962,115	$	7,872,033	$	7,877,943	$	7,931,808
Consumer and other
Nonaccrual	$	2	$	3	$	19	$	22	$	16
90+ days and still accruing		148		121		47		54		27
60-89 days past due		22		81		16		25		196
30-59 days past due		264		366		210		165		519
Current		82,240		86,785		50,829		60,234		68,205
Total consumer and other	$	82,676	$	87,356	$	51,121	$	60,500	$	68,963
Total loans, net of unearned income
Early buy-out loans guaranteed by U.S. government agencies⁽¹⁾	$	135,389	$	134,178	$	143,350	$	150,583	$	168,973
Nonaccrual		161,059		151,399		122,408		118,743		104,850
90+ days and still accruing		18,628		22,852		25,951		20,287		28,251
60-89 days past due		83,062		59,416		94,945		69,857		90,290
30-59 days past due		204,043		139,768		296,929		227,648		146,647
Current		46,465,266		44,167,918		42,547,123		41,544,713		40,907,021
Total loans, net of unearned income	$	47,067,447	$	44,675,531	$	43,230,706	$	42,131,831	$	41,446,032

^{(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)	2024			2024			2024			2023			2023
Loans past due greater than 90 days and still accruing:
Commercial	$	20		$	304		$	27		$	98		$	200
Commercial real estate		225			—			—			—			1,092
Home equity		—			—			—			—			—
Residential real estate		—			—			—			—			—
Premium finance receivables – property & casualty		18,235			22,427			25,877			20,135			16,253
Premium finance receivables – life insurance		—			—			—			—			10,679
Consumer and other		148			121			47			54			27
Total loans past due greater than 90 days and still accruing		18,628			22,852			25,951			20,287			28,251
Non-accrual loans:
Commercial		63,826			51,087			31,740			38,940			43,569
Commercial real estate		42,071			48,289			39,262			35,459			17,043
Home equity		1,122			1,100			838			1,341			1,363
Residential real estate		17,959			18,198			17,901			15,391			16,103
Premium finance receivables – property & casualty		36,079			32,722			32,648			27,590			26,756
Premium finance receivables – life insurance		—			—			—			—			—
Consumer and other		2			3			19			22			16
Total non-accrual loans		161,059			151,399			122,408			118,743			104,850
Total non-performing loans:
Commercial		63,846			51,391			31,767			39,038			43,769
Commercial real estate		42,296			48,289			39,262			35,459			18,135
Home equity		1,122			1,100			838			1,341			1,363
Residential real estate		17,959			18,198			17,901			15,391			16,103
Premium finance receivables – property & casualty		54,314			55,149			58,525			47,725			43,009
Premium finance receivables – life insurance		—			—			—			—			10,679
Consumer and other		150			124			66			76			43
Total non-performing loans	$	179,687		$	174,251		$	148,359		$	139,030		$	133,101
Other real estate owned		13,682			19,731			14,538			13,309			14,060
Total non-performing assets	$	193,369		$	193,982		$	162,897		$	152,339		$	147,161
Total non-performing loans by category as a percent of its own respective category’s period-end balance:
Commercial		0.42	%		0.36	%		0.24	%		0.30	%		0.34	%
Commercial real estate		0.33			0.40			0.34			0.31			0.17
Home equity		0.26			0.31			0.25			0.39			0.40
Residential real estate		0.53			0.59			0.62			0.56			0.59
Premium finance receivables – property & casualty		0.76			0.78			0.84			0.69			0.64
Premium finance receivables – life insurance		—			—			—			—			0.13
Consumer and other		0.18			0.14			0.13			0.13			0.06
Total loans, net of unearned income		0.38	%		0.39	%		0.34	%		0.33	%		0.32	%
Total non-performing assets as a percentage of total assets		0.30	%		0.32	%		0.28	%		0.27	%		0.26	%
Allowance for loan losses and unfunded lending-related commitments losses as a percentage of non-accrual loans		270.53	%		288.69	%		348.98	%		359.82	%		380.69	%

^{(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)	2024			2024			2024			2023			2023			2024			2023

Balance at beginning of period	$	174,251		$	148,359		$	139,030		$	133,101		$	108,712		$	139,030		$	100,697
Additions from becoming non-performing in the respective period		42,335			54,376			23,142			59,010			18,666			96,711			64,367
Additions from assets acquired in the respective period		189			—			—			—			—			189			—
Return to performing status		(362	)		(912	)		(490	)		(24,469	)		(1,702	)		(1,274	)		(2,542	)
Payments received		(10,894	)		(9,611	)		(8,336	)		(10,000	)		(6,488	)		(20,505	)		(24,063	)
Transfer to OREO and other repossessed assets		(3,680	)		(6,945	)		(1,381	)		(2,623	)		(2,671	)		(10,625	)		(5,629	)
Charge-offs, net		(21,211	)		(7,673	)		(14,810	)		(9,480	)		(3,011	)		(28,884	)		(6,866	)
Net change for premium finance receivables		(941	)		(3,343	)		11,204			(6,509	)		19,595			(4,284	)		7,137
Balance at end of period	$	179,687		$	174,251		$	148,359		$	139,030		$	133,101		$	170,358		$	133,101

Other Real Estate Owned

	Three Months Ended
	Sep 30,			Jun 30,			Mar 31,			Dec 31,			Sep 30,
(In thousands)	2024			2024			2024			2023			2023
Balance at beginning of period	$	19,731		$	14,538		$	13,309		$	14,060		$	11,586
Disposals/resolved		(9,729	)		(1,752	)		—			(3,416	)		(467	)
Transfers in at fair value, less costs to sell		3,680			6,945			1,436			2,665			2,941
Fair value adjustments		—			—			(207	)		—			—
Balance at end of period	$	13,682		$	19,731		$	14,538		$	13,309		$	14,060

	Period End
	Sep 30,			Jun 30,			Mar 31,			Dec 31,			Sep 30,
Balance by Property Type:	2024			2024			2024			2023			2023
Residential real estate	$	—		$	161		$	1,146		$	720		$	441
Commercial real estate		13,682			19,570			13,392			12,589			13,619
Total	$	13,682		$	19,731		$	14,538		$	13,309		$	14,060

TABLE 15: NON-INTEREST INCOME

	Three Months Ended															Q3 2024 compared to Q2 2024					Q3 2024 compared to Q3 2023
	Sep 30,			Jun 30,			Mar 31,			Dec 31,			Sep 30,			Q3 2024 compared to Q2 2024					Q3 2024 compared to Q3 2023
(Dollars in thousands)	2024			2024			2024			2023			2023			$ Change			% Change		$ Change			% Change
Brokerage	$	6,139		$	5,588		$	5,556		$	5,349		$	4,359		$	551		10	%	$	1,780		41	%
Trust and asset management		31,085			29,825			29,259			27,926			29,170			1,260		4			1,915		7
Total wealth management		37,224			35,413			34,815			33,275			33,529			1,811		5			3,695		11
Mortgage banking		15,974			29,124			27,663			7,433			27,395			(13,150	)	(45	)		(11,421	)	(42	)
Service charges on deposit accounts		16,430			15,546			14,811			14,522			14,217			884		6			2,213		16
Gains (losses) on investment securities, net		3,189			(4,282	)		1,326			2,484			(2,357	)		7,471		NM			5,546		NM
Fees from covered call options		988			2,056			4,847			4,679			4,215			(1,068	)	(52	)		(3,227	)	(77	)
Trading (losses) gains, net		(130	)		70			677			(505	)		728			(200	)	NM			(858	)	NM
Operating lease income, net		15,335			13,938			14,110			14,162			13,863			1,397		10			1,472		11
Other:
Interest rate swap fees		2,914			3,392			2,828			4,021			2,913			(478	)	(14	)		1		—
BOLI		1,517			1,351			1,651			1,747			729			166		12			788		NM
Administrative services		1,450			1,322			1,217			1,329			1,336			128		10			114		9
Foreign currency remeasurement gains (losses)		696			(145	)		(1,171	)		1,150			(446	)		841		NM			1,142		NM
Changes in fair value on EBOs and loans held-for-investment		518			604			(439	)		1,556			(338	)		(86	)	(14	)		856		NM
Early pay-offs of capital leases		532			393			430			157			461			139		35			71		15
Miscellaneous		16,510			22,365			37,815			14,819			16,233			(5,855	)	(26	)		277		2
Total Other		24,137			29,282			42,331			24,779			20,888			(5,145	)	(18	)		3,249		16
Total Non-Interest Income	$	113,147		$	121,147		$	140,580		$	100,829		$	112,478		$	(8,000	)	(7) %		$	669		1	%

	Nine Months Ended
	Sep 30,			Sep 30,			$			%
(Dollars in thousands)	2024			2023			Change			Change
Brokerage	$	17,283		$	13,296		$	3,987		30	%
Trust and asset management		90,169			84,036			6,133		7
Total wealth management		107,452			97,332			10,120		10
Mortgage banking		72,761			75,640			(2,879	)	(4	)
Service charges on deposit accounts		46,787			40,728			6,059		15
Gains (losses) on investment securities, net		233			(959	)		1,192		NM
Fees from covered call options		7,891			17,184			(9,293	)	(54	)
Trading gains, net		617			1,647			(1,030	)	(63	)
Operating lease income, net		43,383			39,136			4,247		11
Other:
Interest rate swap fees		9,134			8,230			904		11
BOLI		4,519			3,402			1,117		33
Administrative services		3,989			4,270			(281	)	(7	)
Foreign currency remeasurement losses		(620	)		(91	)		(529	)	NM
Changes in fair value on EBOs and loans held-for-investment		683			(35	)		718		NM
Early pay-offs of capital leases		1,355			1,027			328		32
Miscellaneous		76,690			45,766			30,924		68
Total Other		95,750			62,569			33,181		53
Total Non-Interest Income	$	374,874		$	333,277		$	41,597		12	%

^{NM – Not meaningful.
BOLI – Bank-owned life insurance.}

TABLE 16: MORTGAGE BANKING

	Three Months Ended															Nine Months Ended
(Dollars in thousands)	Sep 30, 2024			Jun 30, 2024			Mar 31, 2024			Dec 31, 2023			Sep 30, 2023			Sep 30, 2024			Sep 30, 2023
Originations:
Retail originations	$	527,408		$	544,394		$	331,504		$	315,637		$	408,761		$	1,403,306		$	1,071,786
Veterans First originations		239,369			177,792			144,109			123,564			163,856			561,270			451,218
Total originations for sale (A)	$	766,777		$	722,186		$	475,613		$	439,201		$	572,617		$	1,964,576		$	1,523,004
Originations for investment		218,984			275,331			169,246			124,974			137,622			663,561			453,597
Total originations	$	985,761		$	997,517		$	644,859		$	564,175		$	710,239		$	2,628,137		$	1,976,601
As a percentage of originations for sale:
Retail originations		69	%		75	%		70	%		72	%		71	%		71	%		70	%
Veterans First originations		31			25			30			28			29			29			30
Purchases		72	%		83	%		75	%		85	%		84	%		78	%		83	%
Refinances		28			17			25			15			16			22			17
Production Margin:
Production revenue (B)⁽¹⁾	$	13,113		$	14,990		$	13,435		$	6,798		$	13,766		$	41,538		$	34,233
Total originations for sale (A)	$	766,777		$	722,186		$	475,613		$	439,201		$	572,617		$	1,964,576		$	1,523,004
Add: Current period end mandatory interest rate lock commitments to fund originations for sale⁽²⁾		272,072			222,738			207,775			119,624			150,713			272,072			150,713
Less: Prior period end mandatory interest rate lock commitments to fund originations for sale⁽²⁾		222,738			207,775			119,624			150,713			196,246			119,624			113,303
Total mortgage production volume (C)	$	816,111		$	737,149		$	563,764		$	408,112		$	527,084		$	2,117,024		$	1,560,414
Production margin (B / C)		1.61	%		2.03	%		2.38	%		1.67	%		2.61	%		1.96	%		2.19	%
Mortgage Servicing:
Loans serviced for others (D)	$	12,253,361		$	12,211,027		$	12,051,392		$	12,007,165		$	11,885,531
MSRs, at fair value (E)		186,308			204,610			201,044			192,456			210,524
Percentage of MSRs to loans serviced for others (E / D)		1.52	%		1.68	%		1.67	%		1.60	%		1.77	%
Servicing income	$	10,809		$	10,586		$	10,498		$	10,286		$	10,191		$	31,893		$	33,277
Components of MSR:
MSR – changes in fair value model assumptions	$	(17,331	)	$	877		$	7,595		$	(19,634	)	$	4,723		$	(8,859	)	$	485
Changes in fair value of derivative contract held as an economic hedge, net		6,892			(772	)		(2,577	)		3,541			(2,481	)		3,543			(2,261	)
MSR – current period capitalization		6,357			8,223			5,379			5,077			9,706			19,959			23,533
MSR – collection of expected cash flows – paydowns		(1,598	)		(1,504	)		(1,444	)		(1,572	)		(1,492	)		(4,546	)		(4,712	)
MSR – collection of expected cash flows – payoffs and repurchases		(5,730	)		(4,030	)		(2,942	)		(1,939	)		(3,105	)		(12,702	)		(8,837	)
MSR Activity	$	(11,410	)	$	2,794		$	6,011		$	(14,527	)	$	7,351		$	(2,605	)	$	8,208
Summary of Mortgage Banking Revenue:
Production revenue⁽¹⁾	$	13,113		$	14,990		$	13,435		$	6,798		$	13,766		$	41,538		$	34,233
Servicing income		10,809			10,586			10,498			10,286			10,191			31,893			33,277
MSR activity		(11,410	)		2,794			6,011			(14,527	)		7,351			(2,605	)		8,208
Changes in fair value of early buy-out loans guaranteed by U.S. government agencies (HFS)		3,529			642			(2,190	)		4,856			(4,245	)		1,981			(440	)
Other revenue		(67	)		112			(91	)		20			332			(46	)		362
Total mortgage banking revenue	$	15,974		$	29,124		$	27,663		$	7,433		$	27,395		$	72,761		$	75,640
Changes in fair value on early buy-out loans guaranteed by U.S. government agencies (HFI)	$	518		$	604		$	(439	)	$	1,556		$	(338	)	$	683		$	(35	)

^{(1) Production revenue represents revenue earned from the origination and subsequent sale of mortgages, including gains on loans sold and fees from originations, changes in other related financial instruments carried at fair value, processing and other related activities, and excludes servicing fees, changes in the fair value of servicing rights and changes to the mortgage recourse obligation and other non-production revenue.}
^{(2) Certain volume adjusted for the estimated pull-through rate of the loan, which represents the Company’s best estimate of the likelihood that a committed loan will ultimately fund.}
TABLE 17: NON-INTEREST EXPENSE

	Three Months Ended													Q3 2024 compared to Q2 2024					Q3 2024 compared to Q3 2023
	Sep 30,			Jun 30,			Mar 31,		Dec 31,			Sep 30,		Q3 2024 compared to Q2 2024					Q3 2024 compared to Q3 2023
(Dollars in thousands)	2024			2024			2024		2023			2023		$ Change			% Change		$ Change			% Change
Salaries and employee benefits:
Salaries	$	118,971		$	113,860		$	112,172	$	111,484		$	111,303	$	5,111		4	%	$	7,668		7	%
Commissions and incentive compensation		57,575			52,151			51,001		48,974			48,817		5,424		10			8,758		18
Benefits		34,715			32,530			32,000		33,513			32,218		2,185		7			2,497		8
Total salaries and employee benefits		211,261			198,541			195,173		193,971			192,338		12,720		6			18,923		10
Software and equipment		31,574			29,231			27,731		27,779			25,951		2,343		8			5,623		22
Operating lease equipment		10,518			10,834			10,683		10,694			12,020		(316	)	(3	)		(1,502	)	(12	)
Occupancy, net		19,945			19,585			19,086		18,102			21,304		360		2			(1,359	)	(6	)
Data processing		9,984			9,503			9,292		8,892			10,773		481		5			(789	)	(7	)
Advertising and marketing		18,239			17,436			13,040		17,166			18,169		803		5			70		0
Professional fees		9,783			9,967			9,553		8,768			8,887		(184	)	(2	)		896		10
Amortization of other acquisition-related intangible assets		4,042			1,122			1,158		1,356			1,408		2,920		NM			2,634		NM
FDIC insurance		10,512			10,429			9,381		9,303			9,748		83		1			764		8
FDIC insurance – special assessment		—			—			5,156		34,374			—		—		NM			—		NM
OREO expense, net		(938	)		(259	)		392		(1,559	)		120		(679	)	NM			(1,058	)	NM
Other:
Lending expenses, net of deferred origination costs		4,995			5,335			5,078		5,330			4,777		(340	)	(6	)		218		5
Travel and entertainment		5,364			5,340			4,597		5,754			5,449		24		—			(85	)	(2	)
Miscellaneous		25,408			23,289			22,825		22,722			19,111		2,119		9			6,297		33
Total other		35,767			33,964			32,500		33,806			29,337		1,803		5			6,430		22
Total Non-Interest Expense	$	360,687		$	340,353		$	333,145	$	362,652		$	330,055	$	20,334		6	%	$	30,632		9	%

	Nine Months Ended
	Sep 30,			Sep 30,		$			%
(Dollars in thousands)	2024			2023		Change			Change
Salaries and employee benefits:
Salaries	$	345,003		$	327,328	$	17,675		5	%
Commissions and incentive compensation		160,727			133,127		27,600		21
Benefits		99,245			93,587		5,658		6
Total salaries and employee benefits		604,975			554,042		50,933		9
Software and equipment		88,536			76,853		11,683		15
Operating lease equipment		32,035			31,669		366		1
Occupancy, net		58,616			58,966		(350	)	(1	)
Data processing		28,779			29,908		(1,129	)	(4	)
Advertising and marketing		48,715			47,909		806		2
Professional fees		29,303			25,990		3,313		13
Amortization of other acquisition-related intangible assets		6,322			4,142		2,180		53
FDIC insurance		30,322			27,425		2,897		11
FDIC insurance – special assessment		5,156			—		5,156		NM
OREO expense, net		(805	)		31		(836	)	NM
Other:
Lending expenses, net of deferred origination costs		15,408			15,766		(358	)	(2	)
Travel and entertainment		15,301			15,440		(139	)	(1	)
Miscellaneous		71,522			61,706		9,816		16
Total other		102,231			92,912		9,319		10
Total Non-Interest Expense	$	1,034,185		$	949,847	$	84,338		9	%

^{NM – Not meaningful.}

TABLE 18: SUPPLEMENTAL NON-GAAP FINANCIAL MEASURES/RATIOS

The accounting and reporting policies of Wintrust conform to generally accepted accounting principles (“GAAP”) in the United States and prevailing practices in the banking industry. However, certain non-GAAP performance measures and ratios are used by management to evaluate and measure the Company’s performance. These include taxable-equivalent net interest income (including its individual components), taxable-equivalent net interest margin (including its individual components), the taxable-equivalent efficiency ratio, tangible common equity ratio, tangible book value per common share, return on average tangible common equity, 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)	2024			2024			2024			2023			2023			2024			2023
Reconciliation of Non-GAAP Net Interest Margin and Efficiency Ratio:
(A) Interest Income (GAAP)	$	908,604		$	849,979		$	805,513		$	793,848		$	762,400		$	2,564,096		$	2,099,266
Taxable-equivalent adjustment:
– Loans		2,474			2,305			2,246			2,150			1,923			7,025			5,677
– Liquidity Management Assets		668			567			550			575			572			1,785			1,674
– Other Earning Assets		2			3			5			4			1			10			6
(B) Interest Income (non-GAAP)	$	911,748		$	852,854		$	808,314		$	796,577		$	764,896		$	2,572,916		$	2,106,623
(C) Interest Expense (GAAP)		406,021			379,369			341,319			323,874			300,042			1,126,709			731,376
(D) Net Interest Income (GAAP) (A minus C)	$	502,583		$	470,610		$	464,194		$	469,974		$	462,358		$	1,437,387		$	1,367,890
(E) Net Interest Income (non-GAAP) (B minus C)	$	505,727		$	473,485		$	466,995		$	472,703		$	464,854		$	1,446,207		$	1,375,247
Net interest margin (GAAP)		3.49	%		3.50	%		3.57	%		3.62	%		3.60	%		3.52	%		3.68	%
Net interest margin, fully taxable-equivalent (non-GAAP)		3.51			3.52			3.59			3.64			3.62			3.54			3.70
(F) Non-interest income	$	113,147		$	121,147		$	140,580		$	100,829		$	112,478		$	374,874		$	333,277
(G) (Losses) gains on investment securities, net		3,189			(4,282	)		1,326			2,484			(2,357	)		233			(959	)
(H) Non-interest expense		360,687			340,353			333,145			362,652			330,055			1,034,185			949,847
Efficiency ratio (H/(D+F-G))		58.88	%		57.10	%		55.21	%		63.81	%		57.18	%		57.07	%		55.80	%
Efficiency ratio (non-GAAP) (H/(E+F-G))		58.58			56.83			54.95			63.51			56.94			56.80			55.56
	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)	2024			2024			2024			2023			2023			2024			2023
Reconciliation of Non-GAAP Tangible Common Equity Ratio:
Total shareholders’ equity (GAAP)	$	6,399,714		$	5,536,628		$	5,436,400		$	5,399,526		$	5,015,613
Less: Non-convertible preferred stock (GAAP)		(412,500	)		(412,500	)		(412,500	)		(412,500	)		(412,500	)
Less: Intangible assets (GAAP)		(924,646	)		(676,562	)		(677,911	)		(679,561	)		(680,353	)
(I) Total tangible common shareholders’ equity (non-GAAP)	$	5,062,568		$	4,447,566		$	4,345,989		$	4,307,465		$	3,922,760
(J) Total assets (GAAP)	$	63,788,424		$	59,781,516		$	57,576,933		$	56,259,934		$	55,555,246
Less: Intangible assets (GAAP)		(924,646	)		(676,562	)		(677,911	)		(679,561	)		(680,353	)
(K) Total tangible assets (non-GAAP)	$	62,863,778		$	59,104,954		$	56,899,022		$	55,580,373		$	54,874,893
Common equity to assets ratio (GAAP) (L/J)		9.4	%		8.6	%		8.7	%		8.9	%		8.3	%
Tangible common equity ratio (non-GAAP) (I/K)		8.1			7.5			7.6			7.7			7.1

Reconciliation of Non-GAAP Tangible Book Value per Common Share:
Total shareholders’ equity	$	6,399,714		$	5,536,628		$	5,436,400		$	5,399,526		$	5,015,613
Less: Preferred stock		(412,500	)		(412,500	)		(412,500	)		(412,500	)		(412,500	)
(L) Total common equity	$	5,987,214		$	5,124,128		$	5,023,900		$	4,987,026		$	4,603,113
(M) Actual common shares outstanding		66,482			61,760			61,737			61,244			61,222
Book value per common share (L/M)	$	90.06		$	82.97		$	81.38		$	81.43		$	75.19
Tangible book value per common share (non-GAAP) (I/M)		76.15			72.01			70.40			70.33			64.07

Reconciliation of Non-GAAP Return on Average Tangible Common Equity:
(N) Net income applicable to common shares	$	163,010		$	145,397		$	180,303		$	116,489		$	157,207		$	488,710		$	478,173
Add: Intangible asset amortization		4,042			1,122			1,158			1,356			1,408			6,322			4,142
Less: Tax effect of intangible asset amortization		(1,087	)		(311	)		(291	)		(343	)		(380	)		(1,682	)		(1,102	)
After-tax intangible asset amortization	$	2,955		$	811		$	867		$	1,013		$	1,028		$	4,640		$	3,040
(O) Tangible net income applicable to common shares (non-GAAP)	$	165,965		$	146,208		$	181,170		$	117,502		$	158,235		$	493,350		$	481,213
Total average shareholders’ equity	$	5,990,429		$	5,450,173		$	5,440,457		$	5,066,196		$	5,083,883		$	5,628,346		$	5,008,648
Less: Average preferred stock		(412,500	)		(412,500	)		(412,500	)		(412,500	)		(412,500	)		(412,500	)		(412,500	)
(P) Total average common shareholders’ equity	$	5,577,929		$	5,037,673		$	5,027,957		$	4,653,696		$	4,671,383		$	5,215,846		$	4,596,148
Less: Average intangible assets		(833,574	)		(677,207	)		(678,731	)		(679,812	)		(681,520	)		(730,216	)		(679,799	)
(Q) Total average tangible common shareholders’ equity (non-GAAP)	$	4,744,355		$	4,360,466		$	4,349,226		$	3,973,884		$	3,989,863		$	4,485,630		$	3,916,349
Return on average common equity, annualized (N/P)		11.63	%		11.61	%		14.42	%		9.93	%		13.35	%		12.52	%		13.91	%
Return on average tangible common equity, annualized (non-GAAP) (O/Q)		13.92			13.49			16.75			11.73			15.73			14.69			16.43

Reconciliation of Non-GAAP Pre-Tax, Pre-Provision Income:
Income before taxes	$	232,709		$	211,343		$	249,956		$	165,243		$	224,858		$	694,008		$	679,838
Add: Provision for credit losses		22,334			40,061			21,673			42,908			19,923			84,068			71,482
Pre-tax income, excluding provision for credit losses (non-GAAP)	$	255,043		$	251,404		$	271,629		$	208,151		$	244,781		$	778,076		$	751,320

WINTRUST SUBSIDIARIES AND LOCATIONS

Wintrust is a financial holding company whose common stock is traded on the Nasdaq Global Select Market WTFC. Its 16 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., Town Bank, N.A., in Hartland, Wisconsin and Macatawa Bank in Holland, Michigan.

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, Hawthorn Woods, 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 Michigan in Allendale, Byron Center, Douglas, Grand Haven, Grand Rapids, Grandville, Hamilton, Hudsonville, Jenison, Rockford, Walker, Wyoming, and Zeeland, and in Florida in Bonita Springs and Naples, and in Indiana in Crown Point and Dyer.

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.
Wintrust Private 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 2023 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, 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, the Company’s business and growth strategies, including future acquisitions of banks, specialty finance or wealth management businesses, internal growth and plans to form additional de novo banks or branch offices. Actual results could differ materially from those addressed in the forward-looking statements as a result of numerous factors, including the following:

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 losses, difficulties or developments related to the Company’s recent or future acquisitions;
unexpected difficulties and losses related to FDIC-assisted acquisitions;
harm to the Company’s reputation;
any negative perception of the Company’s financial strength;
ability of the Company to raise additional capital on acceptable terms when needed;
disruption in capital markets, which may lower fair values for the Company’s investment portfolio;
ability of the Company to use technology to provide products and services that will satisfy customer demands and create efficiencies in operations and to manage risks associated therewith;
failure or breaches of our security systems or infrastructure, or those of third parties;
security breaches, including denial of service attacks, hacking, social engineering attacks, malware intrusion and similar events or data corruption attempts and identity theft;
adverse effects on our information technology systems, or those of third parties, resulting from failures, human error or cyberattacks (including ransomware);
adverse effects of failures by our vendors to provide agreed upon services in the manner and at the cost agreed, particularly our information technology vendors;
increased costs as a result of protecting our customers from the impact of stolen debit card information;
accuracy and completeness of information the Company receives about customers and counterparties to make credit decisions;
ability of the Company to attract and retain senior management experienced in the banking and financial services industries;
environmental liability risk associated with lending activities;
the impact of any claims or legal actions to which the Company is subject, including any effect on our reputation;
losses incurred in connection with repurchases and indemnification payments related to mortgages and increases in reserves associated therewith;
the loss of customers as a result of technological changes allowing consumers to complete their financial transactions without the use of a bank;
the soundness of other financial institutions and the impact of recent failures of financial institutions, including broader financial institution liquidity risk and concerns;
the expenses and delayed returns inherent in opening new branches and de novo banks;
liabilities, potential customer loss or reputational harm related to closings of existing branches;
examinations and challenges by tax authorities, and any unanticipated impact of the Tax Act;
changes in accounting standards, rules and interpretations, and the impact on the Company’s financial statements;
the ability of the Company to receive dividends from its subsidiaries;
the impact of the Company’s transition from LIBOR to an alternative benchmark rate for current and future transactions;
a decrease in the Company’s capital ratios, including as a result of declines in the value of its loan portfolios, or otherwise;
legislative or regulatory changes, particularly changes in regulation of financial services companies and/or the products and services offered by financial services companies;
changes in laws, regulations, rules, standards and contractual obligations regarding data privacy and cybersecurity;
a lowering of our credit rating;
changes in U.S. monetary policy and changes to the Federal Reserve’s balance sheet, including changes in response to persistent inflation or otherwise;
regulatory restrictions upon our ability to market our products to consumers and limitations on our ability to profitably operate our mortgage business;
increased costs of compliance, heightened regulatory capital requirements and other risks associated with changes in regulation and the regulatory environment;
the impact of heightened capital requirements;
increases in the Company’s FDIC insurance premiums, or the collection of special assessments by the FDIC;
delinquencies or fraud with respect to the Company’s premium finance business;
credit downgrades among commercial and life insurance providers that could negatively affect the value of collateral securing the Company’s premium finance loans;
the Company’s ability to comply with covenants under its credit facility;
fluctuations in the stock market, which may have an adverse impact on the Company’s wealth management business and brokerage operation; and
widespread outages of operational, communication, or other systems, whether internal or provided by third parties, natural or other disasters (including acts of terrorism, armed hostilities and pandemics), and the effects of climate change.

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 Tuesday, October 22, 2024 at 10:00 a.m. (CDT) regarding third quarter and year-to-date 2024 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 30, 2024 available at the Investor Relations, Investor News and Events, Press Releases link on its website at https://www.wintrust.com. A separate simultaneous audio-only webcast link is included within the press release referenced above. Registration for and a replay of the audio-only webcast with an accompanying slide presentation will be available at https://www.wintrust.com, Investor Relations, Investor News and Events, Presentations & Conference Calls. The text of the third quarter and year-to-date 2024 earnings press release will also be available on the home page of the Company’s website at https://www.wintrust.com and at the Investor Relations, Investor News and Events, Press Releases link on its website.

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

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