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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
 
FORM 8-K
 
Current Report
Pursuant to Section 13 or 15(d) of The
Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): July 17, 2023
 
WINTRUST FINANCIAL CORPORATION
(Exact name of registrant as specified in its charter)
 
Illinois001-35077 36-3873352
(State or other jurisdiction of Incorporation)(Commission File Number)(I.R.S. Employer
Identification No.)
9700 W. Higgins Road, Suite 800RosemontIllinois 60018
(Address of principal executive offices) (Zip Code)
Registrant’s telephone number, including area code (847) 939-9000
Not Applicable
(Former name or former address, if changed since last year)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
Title of Each Class Ticker SymbolName of Each Exchange on Which Registered
Common Stock, no par value WTFCThe NASDAQ Global Select Market
Fixed-to-Floating Rate Non-Cumulative Perpetual Preferred Stock, Series D, no par valueWTFCMThe NASDAQ Global Select Market
Depositary Shares, Each Representing a 1/1,000th Interest in a Share of
WTFCPThe NASDAQ Global Select Market
6.875% Fixed-Rate Reset Non-Cumulative Perpetual Preferred Stock, Series E, no par value

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

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



Item 1.01. Entry into a Material Definitive Agreement
On July 17, 2023, Wintrust Financial Corporation (the “Company”) entered into an amendment (the “Amendment”) to its existing $200.0 million term loan facility and $100.0 million revolving credit facility evidenced by that certain Amended and Restated Credit Agreement dated as of December 12, 2022 (the “Amended and Restated Credit Agreement”), among the Company and the unaffiliated banks named therein as lenders and agents. The Amendment designates 450 Northbrook Trust, a subsidiary of the Company, as a “Specified Subsidiary” under the Amended and Restated Credit Agreement, which excludes it from the scope of certain provisions of the burdensome agreements covenant in the Amended and Restated Credit Agreement. All other provisions of the Amended and Restated Credit Agreement remain the same.
The above summary does not purport to be a complete description of the Amendment and it is qualified in its entirety by reference to the Amendment filed as Exhibit 10.1 hereto.

Item 2.02. Results of Operations and Financial Condition
The information in this Current Report is being furnished and shall not be deemed “filed” for the purposes of Section 18 of the Securities Exchange Act of 1934, as amended, or otherwise subject to the liabilities of that Section. The information in this Current Report shall not be incorporated by reference into any registration statement or other document pursuant to the Securities Act of 1933, as amended.
On July 19, 2023, the Company announced earnings for the second quarter of 2023 and posted on its website the Second Quarter 2023 Earnings Release Presentation. Copies of the press release relating to the Company’s earnings results and the related presentation are attached hereto as Exhibit 99.1 and Exhibit 99.2, respectively. Certain supplemental information relating to non-GAAP financial measures reported in the attached press release and presentation is included on pages 32 through 33 of Exhibit 99.1 and pages 26 through 28 of Exhibit 99.2.
Item 2.03. Creation of a Direct Financial Obligation or an Obligation under an Off-Balance Sheet Arrangement of a Registrant.
The information provided in Item 1.01 is incorporated by reference herein.
Item 9.01. Financial Statements and Exhibits
(d) Exhibits
 
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Signature
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
 
WINTRUST FINANCIAL CORPORATION
(Registrant)
By:/s/ David L. Stoehr
 David L. Stoehr
Executive Vice President and
    Chief Financial Officer
Date: July 19, 2023
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INDEX TO EXHIBITS
 
Exhibit
  

4
EXECUTION VERSION
First Amendment
to
Amended and Restated Credit Agreement

This FIRST AMENDMENT TO AMENDED AND RESTATED CREDIT AGREEMENT (this “Amendment”), dated as of July 17, 2023 (effective as provided herein), is among WINTRUST FINANCIAL CORPORATION, an Illinois corporation (“Borrower”), each Lender a party hereto, and WELLS FARGO BANK, NATIONAL ASSOCIATION, as Administrative Agent (“Administrative Agent”).

RECITALS:

Borrower, Lenders and Administrative Agent have previously entered into the Amended and Restated Credit Agreement dated as of December 12, 2022 (as amended, restated, amended and restated, supplemented or otherwise modified from time to time, the “Credit Agreement”).

Borrower has requested that part (b) to Schedule 8.9 of the Credit Agreement be supplemented to include an additional Specified Subsidiary, and Lenders have agreed, subject to the terms and conditions of this Amendment, to supplement part (b) to Schedule 8.9 of the Credit Agreement as provided in this Amendment.

AGREEMENT:

NOW, THEREFORE, in consideration of the premises and mutual covenants herein contained, the parties hereto agree as follows:

ARTICLE I

Definitions
1.1    Definitions. Capitalized terms not otherwise defined herein have the meanings ascribed to such terms in the Credit Agreement.

1.2    Other Definitional Provisions. The words “hereby”, “herein”, “hereinafter”, “hereof”, “hereto” and “hereunder” when used in this Amendment shall refer to this Amendment as a whole and not to any particular Article, Section, subsection or provision of this Amendment. Section, subsection and Schedule references herein are to such Sections, subsections and Schedules to this Amendment unless otherwise specified. All titles or headings to Articles, Sections, subsections or other divisions of this Amendment or the schedules hereto, if any, are only for the convenience of the parties and shall not be construed to have any effect or meaning with respect to the other content of such Articles, Sections, subsections, other divisions or schedules, such other content being controlling as the agreement among the parties hereto. Whenever the context requires, reference herein made to the single number shall be understood to include the plural; and likewise, the plural shall be understood to include the singular. Words denoting gender shall be construed to include the masculine, feminine and neuter, when such construction is appropriate; and specific enumeration shall not exclude the general but shall be construed as cumulative. Definitions of terms defined in the singular or plural shall be equally applicable to the plural or singular, as the case may be, unless otherwise indicated.

1.3    Incorporation by Reference. The Recitals to this Amendment are incorporated herein by reference and made a part hereof for all purposes as though set forth in this Amendment verbatim.







ARTICLE II

Amendment to Credit Agreement

2.1    Part (b) to Schedule 8.9 to the Credit Agreement is hereby amended to add the following at the end thereto:

“450 Northbrook Trust”

ARTICLE III

Conditions Precedent; Effectiveness

3.1    Conditions. The effectiveness of this Amendment is subject to the satisfaction of the following condition precedent:

(a)    Documents. Administrative Agent shall have received this Amendment executed by Borrower and each Lender.

(b)    Fees. The Administrative Agent shall have received payment of the Administrative Agent's reasonable out-of-pocket expenses (including reasonable out-of-pocket fees and expenses of counsel for the Administrative Agent) in connection with this Amendment.

3.2    Effectiveness. Upon satisfaction of the condition precedent in Section 3.1, this Amendment shall be effective as of the date first set forth above.

ARTICLE IV

Ratification

4.1    Ratification. The terms and provisions set forth in this Amendment shall modify and supersede all inconsistent terms and provisions set forth in the Credit Agreement and except as expressly modified and superseded by this Amendment, the terms and provisions of the Credit Agreement and the other Loan Documents are ratified and confirmed and shall continue in full force and effect. Borrower agrees that the Credit Agreement, as amended hereby, and the other Loan Documents to which it is a party or subject shall continue to be legal, valid, binding and enforceable in accordance with their respective terms.

ARTICLE V

Representations and Warranties

5.1    Loan Documents. Borrower hereby represents and warrants to each Lender and Administrative Agent that (a) the execution, delivery and performance of this Amendment and any and all other Loan Documents executed and/or delivered in connection herewith have been authorized by all requisite action on the part of Borrower and will not (i) violate any organizational or governance document of Borrower or (ii) violate any applicable law in any material respect, (b) the representations and warranties contained in the Credit Agreement, as amended hereby, and each other Loan Document are true and correct in all material respects on and as of the date hereof as though made on and as of the date hereof (except to the extent such representation or warranty is already qualified as to materiality, Material Adverse Effect, or similar language, in which case it shall be true and correct in all respects) on and as of the date hereof with the same effect as though made on and as of such date, except to the extent such representations and warranties expressly relate to an earlier date (in which case such representations
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and warranties shall be shall be true and correct in all material respects (except to the extent such representations and warranties are already qualified as to materiality, Material Adverse Effect, or similar language, in which case they shall be true and correct in all respects) as of such earlier date), and (c) no Default or Event of Default shall exist immediately before or immediately after giving effect to this Amendment.

ARTICLE VI

Miscellaneous

6.1    Reference to Credit Agreement. Each of the Loan Documents, including the Credit Agreement and any and all other agreements, documents, or instruments now or hereafter executed and delivered pursuant to the terms hereof or pursuant to the terms of the Credit Agreement, as amended hereby, are hereby amended so that any reference in such Loan Documents to the Credit Agreement shall mean a reference to the Credit Agreement as amended hereby.

6.2    Severability. Any provision of this Amendment or any other Loan Document which is prohibited or unenforceable in any jurisdiction shall, as to such jurisdiction, be ineffective only to the extent of such prohibition or unenforceability without invalidating the remainder of such provision or the remaining provisions hereof or thereof or affecting the validity or enforceability of such provision in any other jurisdiction.

6.3    Counterparts. This Amendment may be executed in counterparts (and by different parties hereto in different counterparts), each of which shall constitute an original, but all of which when taken together shall constitute a single contract. Delivery of an executed signature page of this Amendment by facsimile transmission or PDF attachment to email shall be effective as delivery of an original executed counterpart thereof.

6.4    Governing Law; Jurisdiction, Etc.

(a)    Governing Law. This Amendment and the other Loan Documents executed in connection herewith, unless expressly set forth therein, shall be governed by, construed and enforced in accordance with, the law of the State of Illinois, without reference to the conflicts or choice of law principles thereof.

(b)    Submission to Jurisdiction. Each of the parties hereto irrevocably and unconditionally submits, for itself and its property, to the nonexclusive jurisdiction of the courts of the State of Illinois sitting in Cook County and of the United States District Court of the Northern District of Illinois, and any appellate court from any thereof, in any action or proceeding arising out of or relating to this Amendment or any other Loan Document, or for recognition or enforcement of any judgment, and each of the parties hereto irrevocably and unconditionally agrees that all claims in respect of any such action or proceeding may be heard and determined in such Illinois state court or, to the fullest extent permitted by applicable Law, in such Federal court. Each of the parties hereto agrees that a final judgment in any such action or proceeding shall be conclusive and may be enforced in other jurisdictions by suit on the judgment or in any other manner provided by law. Nothing in this Amendment or in any other Loan Document shall affect any right that Administrative Agent or any Lender may otherwise have to bring any action or proceeding relating to this Amendment or any other Loan Document against Borrower or its properties in the courts of any jurisdiction.

(c)    Waiver of Venue. Each of the parties hereto irrevocably and unconditionally waives, to the fullest extent permitted by applicable Law, any objection that it may now or hereafter have to the laying of venue of any action or proceeding arising out of or relating to this
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Amendment or any other Loan Document executed in connection herewith in any court referred to in Section 6.4(b). Each of the parties hereto hereby irrevocably waives, to the fullest extent permitted by applicable Law, the defense of an inconvenient forum to the maintenance of such action or proceeding in any such court.

(d)    Service of Process. Each party hereto irrevocably consents to service of process in the manner provided for notices in Section 11.1 of the Credit Agreement. Nothing in this Amendment will affect the right of any party hereto to serve process in any other manner permitted by applicable Law.

6.5    Waiver of Jury Trial. EACH PARTY HERETO HEREBY IRREVOCABLY WAIVES, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, ANY RIGHT IT MAY HAVE TO A TRIAL BY JURY IN ANY LEGAL PROCEEDING DIRECTLY OR INDIRECTLY ARISING OUT OF OR RELATING TO THIS AMENDMENT OR ANY OTHER LOAN DOCUMENT EXECUTED IN CONNECTION HEREWITH OR THE TRANSACTIONS CONTEMPLATED HEREBY OR THEREBY (WHETHER BASED ON CONTRACT, TORT OR ANY OTHER THEORY). EACH PARTY HERETO (A) CERTIFIES THAT NO REPRESENTATIVE, AGENT OR ATTORNEY OF ANY OTHER PERSON HAS REPRESENTED, EXPRESSLY OR OTHERWISE, THAT SUCH OTHER PERSON WOULD NOT, IN THE EVENT OF LITIGATION, SEEK TO ENFORCE THE FOREGOING WAIVER AND (B) ACKNOWLEDGES THAT IT AND THE OTHER PARTIES HERETO HAVE BEEN INDUCED TO ENTER INTO THIS AMENDMENT AND THE OTHER LOAN DOCUMENTS EXECUTED IN CONNECTION HEREWITH BY, AMONG OTHER THINGS, THE MUTUAL WAIVERS AND CERTIFICATIONS IN THIS SECTION.

6.6    FINAL AGREEMENT. THIS AMENDMENT, TOGETHER WITH THE CREDIT AGREEMENT, AS AMENDED HEREBY, AND THE OTHER LOAN DOCUMENTS, REPRESENT THE FINAL AGREEMENT AMONG THE PARTIES AND MAY NOT BE CONTRADICTED BY EVIDENCE OF PRIOR, CONTEMPORANEOUS OR SUBSEQUENT ORAL AGREEMENTS OF THE PARTIES HERETO. THERE ARE NO UNWRITTEN ORAL AGREEMENTS BETWEEN THE PARTIES.

6.7    Expenses of Administrative Agent. To the extent provided in the Credit Agreement, Borrower shall pay all invoiced reasonable costs and expenses incurred by Administrative Agent in connection with the preparation, negotiation, and execution of this Amendment and the other Loan Documents executed pursuant hereto, including without limitation the reasonable fees and expenses of Administrative Agent's legal counsel promptly following Borrower's receipt of invoices therefor.

6.8    Loan Document. This Amendment is a Loan Document.

[Signature Pages Follow]
4


IN WITNESS WHEREOF, the parties hereto have caused this Amendment to be executed by their duly authorized officers, all as of the day and year first written above.
BORROWER:

WINTRUST FINANCIAL CORPORATION


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

First Amendment to Amended and Restated Credit Agreement – Signature Page


WELLS FARGO BANK, N.A.,
as Administrative Agent


By:
/s/Linda Sampson
Name: Linda Sampson
Title: Vice President


WELLS FARGO BANK, N.A.,
as a Lender


By: /s/Linda Sampson
Name: Linda Sampson
Title: Vice President

First Amendment to Amended and Restated Credit Agreement – Signature Page


ROYAL BANK OF CANADA,
as a Lender


By:
/s/Joseph Simoneau
Name: Joseph Simoneau
Title: Authorized Signatory

First Amendment to Amended and Restated Credit Agreement – Signature Page


U.S. BANK NATIONAL ASSOCIATION
as a Lender


By:
/s/Callen M. Strunk
Name: Callen M. Strunk
Title: Vice President


First Amendment to Amended and Restated Credit Agreement – Signature Page


Exhibit 99.1
Wintrust Financial Corporation
9700 W. Higgins Road, Suite 800, Rosemont, Illinois 60018
News Release
FOR IMMEDIATE RELEASE  July 19, 2023
FOR MORE INFORMATION CONTACT:
Timothy S. Crane, President & Chief Executive Officer
David A. Dykstra, Vice Chairman & Chief Operating Officer
(847) 939-9000
Web site address: www.wintrust.com

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

ROSEMONT, ILLINOIS – Wintrust Financial Corporation (“Wintrust”, “the Company”, “we” or “our”) (Nasdaq: WTFC) announced record net income of $334.9 million or $5.18 per diluted common share for the first six months of 2023 compared to net income of $221.9 million or $3.56 per diluted common share for the same period of 2022, an increase in diluted earnings per common share of 46%. Pre-tax, pre-provision income (non-GAAP) for the first six months of 2023 totaled $506.5 million as compared to $329.9 million in the first six months of 2022, an increase in pre-tax, pre-provision income of 54%.

The Company recorded quarterly net income of $154.8 million or $2.38 per diluted common share for the second quarter of 2023, a decrease in diluted earnings per common share of 15% compared to the first quarter of 2023. Pre-tax, pre-provision income (non-GAAP) totaled $239.9 million as compared to $266.6 million for the first quarter of 2023.

Timothy S. Crane, President and Chief Executive Officer, commented, “We are very pleased with our record net income for the first half of 2023. Our margin stabilized in the second quarter of 2023 and we continue to believe that maintaining such level will allow for strong financial performance in the coming quarters. Specifically, the repricing of our premium finance receivables portfolios in the second quarter helped offset increases in deposit pricing. Strong and balanced deposit growth as well as prudent liquidity management provided stability in our balance sheet through this period of volatility. Credit performance within the portfolio remained strong.”

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

Total deposits grew by $1.3 billion, or 12.4% annualized.
Non-deposit borrowings decreased by $208.2 million.
Total loans increased by $1.5 billion, or 14.8% annualized.
Net interest margin decreased to 3.64% (3.66% on a fully taxable-equivalent basis, non-GAAP) during the second quarter of 2023 due to higher deposit costs. Importantly, however, net interest margin remained relatively stable throughout the second quarter of 2023.
Provision for credit losses totaled $28.5 million in the second quarter of 2023 as compared to a provision for credit losses of $23.0 million in the first quarter of 2023.
Net charge-offs totaled $17.0 million or 17 basis points of average total loans on an annualized basis in the second quarter of 2023 as compared to $5.5 million or six basis points of average total loans on an annualized basis in the first quarter of 2023.
Non-performing assets remained at a low level and represent 0.22% of total assets.

Mr. Crane noted, “By effectively leveraging our strong customer relationships, unique market position, diversified products and competitive rates, Wintrust experienced significant deposit growth, with increased deposits of approximately $1.3 billion, or 12% on an annualized basis. This included outstanding balances of our MaxSafe® products increasing approximately $1.7 billion since the end of the first quarter of 2023. Deposit growth provided enhanced liquidity and reduced our reliance on other borrowings such as FHLB advances. Non-deposit borrowings decreased approximately $208.2 million during the quarter. Growth in deposits helped fund approximately $1.5 billion of loan growth during the quarter. This growth came primarily from approximately $1.0 billion in the commercial premium finance receivables portfolio and approximately $370 million largely


from draws on existing commercial real estate loan facilities. We remain prudent in our review of credit prospects ensuring our loan growth stays within our conservative credit standards.”
Mr. Crane commented, “As noted in our first quarter earnings release, our net interest margin was approximately 3.70% at the end of March of 2023. Despite continued acceleration in deposit pricing and the impact of hedging activity, our net interest margin remained relatively stable throughout the second quarter of 2023. Due to our relatively short-term and asset sensitive balance sheet, we believe that we can maintain the net interest margin between 3.60% and 3.70% for the remainder of the year as we expect further upward repricing primarily in our premium finance receivable portfolios to mitigate higher deposit costs as deposit pricing stabilizes. Net interest income decreased by $10.5 million in the second quarter of 2023, however, we expect net interest income to increase in the third quarter given the aforementioned strong balance sheet growth paired with a stable net interest margin.”

Commenting on credit quality, Mr. Crane stated, “Credit metrics remained strong. The Company has a well-diversified commercial real estate portfolio with exposures primarily consisting of stabilized, income-producing properties. Additionally, the commercial real estate office portfolio represents a small portion of our loan portfolio. In the second quarter of 2023, we took a proactive approach to exit certain credits we considered to be vulnerable to existing market conditions. The resolution of these credits through a sale to external parties resulted in approximately $8.0 million in charge-offs. Net charge-offs totaled $17.0 million or 17 basis points of average total loans on an annualized basis in the second quarter of 2023 as compared to $5.5 million or six basis points of average total loans on an annualized basis in the first quarter of 2023. The allowance for credit losses on our core loan portfolio as of June 30, 2023 was approximately 1.50% of the outstanding balance (see Table 12 for additional information). We believe that the Company’s reserves remain appropriate and we remain diligent in our review of credit.”

Mr. Crane concluded, “Our second quarter of 2023 results continued to demonstrate the benefits of the diversified, multi-faceted nature of our business model. Net income for the quarter was the second highest in our history, behind only net income from the first quarter of 2023. We remain focused on continuing to grow deposits to enhance liquidity and support future asset growth while remaining well positioned for higher interest rates. Total loans as of June 30, 2023 were $917 million higher than average total loans in the second quarter of 2023, which is expected to benefit the third quarter. We are pleased by our position in the markets we serve to continue to grow deposit and loan relationships and believe we are situated well to expand our net revenues and earnings in the coming quarters.”
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The graphs below illustrate certain financial highlights of the second quarter of 2023 as well as historical financial performance. See “Supplemental Non-GAAP Financial Measures/Ratios” at Table 17 for additional information with respect to non-GAAP financial measures/ratios, including the reconciliations to the corresponding GAAP financial measures/ratios.
chart-9bdbc7193e8b42ee897a.jpgchart-d848a5e9cc104046a68a.jpg
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SUMMARY OF RESULTS:

BALANCE SHEET

Total assets increased $1.4 billion in the second quarter of 2023 as compared to the first quarter of 2023. Total loans increased by $1.5 billion as compared to the first quarter of 2023 primarily due to growth in the property and casualty insurance premium finance receivables and commercial real estate loan portfolios. The growth in the commercial real estate portfolio was largely driven by draws on previously-established credit facilities. Additionally, in the second quarter of 2023, the Company received settlement proceeds related to securities called and previously recognized as a trade date receivable of $940 million as of March 31, 2023. Proceeds received increased interest bearing cash on the balance sheet in the second quarter of 2023.

Total liabilities increased by $1.4 billion in the second quarter of 2023 as compared to the first quarter of 2023 primarily due to a $1.3 billion increase in total deposits. In the second quarter of 2023, the deposit mix shift continued as non-interest bearing deposits made up 24% of total deposits at June 30, 2023 compared to 26% at March 31, 2023. This included growth of $1.7 billion in the Company’s unique MaxSafe® product balances. The majority of the Company’s deposits are insured as approximately 74% of the total deposit balance is either fully FDIC-insured or fully collateralized as of June 30, 2023.

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 second quarter of 2023, net interest income totaled $447.5 million, a decrease of $10.5 million as compared to the first quarter of 2023. The $10.5 million decrease in net interest income in the second quarter of 2023 compared to the first quarter of 2023 was primarily due to net interest margin compression driven by an increase in deposit costs and the impact from hedges of our loan portfolio established to protect against the impact of lower rates.

Net interest margin was 3.64% (3.66% on a fully taxable-equivalent basis, non-GAAP) during the second quarter of 2023 compared to 3.81% (3.83% on a fully taxable-equivalent basis, non-GAAP) during the first quarter of 2023. The net interest margin decrease as compared to the first quarter of 2023 was due to a 66 basis point increase in the rate paid on interest-bearing liabilities. This decrease was partially offset by a 34 basis point increase in yield on earning assets and a 15 basis point increase in the net free funds contribution. The 66 basis point increase on the rate paid on interest-bearing liabilities in the second quarter of 2023 as compared to the first quarter of 2023 was primarily due to a 74 basis point increase in the rate paid on interest-bearing deposits primarily related to the increasing rate environment. The 34 basis point increase in the yield on earning assets in the second quarter of 2023 as compared to the first quarter of 2023 was primarily due to a 42 basis point expansion on loan yields, which included an unfavorable eight basis point impact from the Company’s existing hedging positions.

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

ASSET QUALITY

The allowance for credit losses totaled $387.8 million as of June 30, 2023, an increase of $11.5 million as compared to $376.3 million as of March 31, 2023. A provision for credit losses totaling $28.5 million was recorded for the second quarter of 2023 as compared to $23.0 million recorded in the first quarter of 2023. For more information regarding the provision for credit losses, see Table 11 in this report.

Management believes the allowance for credit losses is appropriate to account for expected credit losses. The Current Expected Credit Losses (“CECL”) accounting standard requires the Company to estimate expected credit losses over the life of the Company’s financial assets as of the reporting date. There can be no assurances, however, that future losses will not significantly exceed the amounts provided for, thereby affecting future results of operations. A summary of the allowance for credit losses calculated for the loan components in each portfolio as of June 30, 2023, March 31, 2023, and December 31, 2022 is shown on Table 12 of this report.

Net charge-offs totaled $17.0 million in the second quarter of 2023, as compared to $5.5 million of net charge-offs in the first quarter of 2023. The increase in net charge-offs during the second quarter of 2023 was partially the result of the sale to external parties of certain credits within the commercial real estate portfolio, which resulted in approximately $8.0 million in charge-offs. Net charge-offs as a percentage of average total loans were reported as 17 basis points in the second quarter of 2023 on an annualized basis compared to six basis points on an annualized basis in the first quarter of 2023. For more information regarding net charge-offs, see Table 10 in this report.
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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 $120 million and comprised only 0.22% of total assets as of June 30, 2023, as compared to $110 million as of March 31, 2023. Non-performing loans were slightly higher totaling $109 million, or 0.26% of total loans, at June 30, 2023. For more information regarding non-performing assets, see Table 14 in this report.

NON-INTEREST INCOME

Wealth management revenue increased by $3.9 million in the second quarter of 2023 as compared to the first quarter of 2023 primarily due to increased asset management fees from the acquisition of two asset management businesses at the beginning of the second quarter, offset by lower fees associated with our tax-deferred like-kind exchange business. Wealth management revenue is comprised of the trust and asset management revenue of The Chicago Trust Company and Great Lakes Advisors, the brokerage commissions, managed money fees and insurance product commissions at Wintrust Investments and fees from tax-deferred like-kind exchange services provided by the Chicago Deferred Exchange Company.

Mortgage banking revenue increased by $11.7 million in the second quarter of 2023 as compared to the first quarter of 2023 primarily due to increased loan volume and favorable adjustments to the fair value of certain mortgage assets. The Company recorded net positive fair value adjustments of $1.2 million in the second quarter of 2023 related to fair value changes in certain mortgage assets. This included a $2.0 million favorable adjustment in the value of mortgage servicing rights related to changes in fair value model assumptions, net of economic hedges, offset by a $739,000 unfavorable adjustment on the Company’s held-for-sale portfolio of early buy-out exercised loans guaranteed by U.S. government agencies which are held at fair value. The Company intends to monitor the relationship of these assets and will seek to minimize the earnings impact of fair value changes in future quarters.

The Company recognized nominal net gains on investment securities in the second quarter of 2023 as compared to net gains of $1.4 million in the first quarter of 2023 related to changes in the value of equity securities.

Fees from covered call options decreased by $7.8 million in the second quarter of 2023 as compared to the first quarter of 2023. The Company has typically written call options with terms of less than three months against certain U.S. Treasury and agency securities held in its portfolio for liquidity and other purposes. Management has entered into these transactions with the goal of economically hedging security positions and enhancing its overall return on its investment portfolio. These option transactions are designed to mitigate overall interest rate risk and do not qualify as hedges pursuant to accounting guidance.

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

NON-INTEREST EXPENSE

Salaries and employee benefits expense increased by $8.1 million in the second quarter of 2023 as compared to the first quarter of 2023. The $8.1 million increase is primarily related to higher incentive compensation expense due to elevated commissions and bonus accruals in the second quarter of 2023 and increased employee insurance costs.

Advertising and marketing expenses in the second quarter of 2023 totaled $17.8 million, which is a $5.8 million increase as compared to the first quarter of 2023 primarily due to an increase in seasonal media advertising and sponsorship costs. Marketing costs are incurred to promote the Company’s brand, commercial banking capabilities and the Company’s various products, to attract loans and deposits and to announce new branch openings as well as the expansion of the Company’s non-bank businesses. The level of marketing expenditures depends on the timing of sponsorship programs utilized which are determined based on the market area, targeted audience, competition and various other factors. Generally, these expenses are elevated in the second and third quarters of each year.

Lending expenses, net of deferred origination costs, increased by $4.8 million as compared to the first quarter of 2023 primarily due to increased loan originations in the second quarter of 2023.

Miscellaneous expense in the second quarter of 2023 decreased by $2.3 million as compared to the first quarter of 2023. Miscellaneous expense includes ATM expenses, correspondent bank charges, directors’ fees, telephone, postage, corporate insurance, dues and subscriptions, problem loan expenses and other miscellaneous operational losses and costs.

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

9

INCOME TAXES

The Company recorded income tax expense of $56.7 million in the second quarter of 2023 compared to $63.4 million in the first quarter of 2023. The effective tax rates were 26.81% in the second quarter of 2023 compared to 26.01% in the first quarter of 2023. The effective tax rates were partially impacted by the tax effects related to share-based compensation which fluctuate based on the Company’s stock price and timing of employee stock option exercises and vesting of other share-based awards. The Company recorded net excess tax benefits of $12,000 in the second quarter of 2023, compared to net excess tax benefits of $2.8 million in the first quarter of 2023 related to share-based compensation.

BUSINESS UNIT SUMMARY

Community Banking

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

Mortgage banking revenue was $30.0 million for the second quarter of 2023, an increase of $11.7 million as compared to the first quarter of 2023, primarily due to higher production volume. Service charges on deposit accounts totaled $13.6 million in the second quarter of 2023, an increase of $705,000 as compared to the first quarter of 2023, primarily due to higher fees associated with commercial account activity. The Company’s gross commercial and commercial real estate loan pipelines remained solid as of June 30, 2023 indicating momentum for expected continued loan growth in the third quarter of 2023.

Specialty Finance

Through its specialty finance unit, the Company offers financing of insurance premiums for businesses and individuals, equipment financing through structured loans and lease products to customers in a variety of industries, accounts receivable financing and value-added, out-sourced administrative services and other services. Originations within the insurance premium financing receivables portfolio were $5.0 billion during the second quarter of 2023 and average balances increased by $370.0 million as compared to the first quarter of 2023. The Company’s leasing portfolio balance remained steady in the second quarter of 2023, with its portfolio of assets, including capital leases, loans and equipment on operating leases, totaling $3.1 billion as of June 30, 2023 as compared to $3.1 billion as of March 31, 2023. Revenues from the Company’s out-sourced administrative services business were $1.3 million in the second quarter of 2023, a decrease of $296,000 from the first quarter of 2023.

Wealth Management

Through four separate subsidiaries within its wealth management unit, the Company offers a full range of wealth management services, including trust and investment services, tax-deferred like-kind exchange services, asset management, securities brokerage services and 401(k) and retirement plan services. Wealth management revenue totaled $33.9 million in the second quarter of 2023, an increase of $3.9 million compared to the first quarter of 2023. The increase in wealth management revenue in the second quarter of 2023 was primarily related to higher asset management fees from the acquisition of two asset management businesses at the beginning of the second quarter, offset by lower fees associated with our tax-deferred like-kind exchange business. At June 30, 2023, the Company’s wealth management subsidiaries had approximately $44.5 billion of assets under administration, which included $7.6 billion of assets owned by the Company and its subsidiary banks, representing an increase from the $35.2 billion of assets under administration at March 31, 2023. The increase in assets under administration was primarily the result of the acquisition of two asset management businesses in the second quarter of 2023.

10

ITEMS IMPACTING COMPARATIVE FINANCIAL RESULTS

Business Combination

On April 3, 2023, the Company completed its acquisition of Rothschild & Co Asset Management US Inc. and Rothschild & Co Risk Based Investments LLC from Rothschild & Co North America Inc. As of the acquisition date, the Company acquired approximately $12.6 million in assets. As the transaction was determined to be a business combination, the Company recorded goodwill of approximately $2.6 million on the purchase.

Common Stock Offering

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


WINTRUST FINANCIAL CORPORATION
Key Operating Measures

Wintrust’s key operating measures and growth rates for the second quarter of 2023, as compared to the first quarter of 2023 (sequential quarter) and second quarter of 2022 (linked quarter), are shown in the table below:
% or (1)
basis point  (bp) change from
1st Quarter
2023
% or
basis point  (bp) change from
2nd Quarter
2022
  
Three Months Ended
(Dollars in thousands, except per share data)Jun 30, 2023Mar 31, 2023Jun 30, 2022
Net income$154,750 $180,198 $94,513 (14)64 
Pre-tax income, excluding provision for credit losses (non-GAAP) (2)
239,944 266,595 152,078 (10)58 
Net income per common share – diluted2.38 2.80 1.49 (15)60 
Cash dividends declared per common share0.40 0.40 0.34 18 
Net revenue (3)
560,567 565,764 440,746 (1)27 
Net interest income447,537 457,995 337,804 (2)32 
Net interest margin3.64 %3.81 %2.92 %(17)bps72 bps
Net interest margin – fully taxable-equivalent (non-GAAP) (2)
3.66 3.83 2.93 (17)73 
Net overhead ratio (4)
1.58 1.49 1.51 
Return on average assets1.18 1.40 0.77 (22)41 
Return on average common equity12.79 15.67 8.53 (288)426 
Return on average tangible common equity (non-GAAP) (2)
15.12 18.55 10.36 (343)476 
At end of period
Total assets$54,286,176$52,873,511$50,969,33211 
Total loans (5)
41,023,40839,565,47137,053,10315 11 
Total deposits44,038,70742,718,21142,593,32612 
Total shareholders’ equity5,041,9125,015,5064,727,623
(1)Period-end balance sheet percentage changes are annualized.
(2)See Table 17: Supplemental Non-GAAP Financial Measures/Ratios for additional information on this performance measure/ratio.
(3)Net revenue is net interest income plus non-interest income.
(4)The net overhead ratio is calculated by netting total non-interest expense and total non-interest income, annualizing this amount, and dividing by that period’s average total assets. A lower ratio indicates a higher degree of efficiency.
(5)Excludes mortgage loans held-for-sale.
Certain returns, yields, performance ratios, or quarterly growth rates are “annualized” in this presentation to represent an annual time period. This is done for analytical purposes to better discern, for decision-making purposes, underlying performance trends when compared to full-year or year-over-year amounts. For example, a 5% growth rate for a quarter would represent an annualized 20% growth rate. Additional supplemental financial information showing quarterly trends can be found on the Company’s website at www.wintrust.com by choosing “Financial Reports” under the “Investor Relations” heading, and then choosing “Financial Highlights.”

11

WINTRUST FINANCIAL CORPORATION
Selected Financial Highlights
 Three Months EndedSix Months Ended
(Dollars in thousands, except per share data)Jun 30, 2023Mar 31, 2023Dec 31, 2022Sep 30, 2022Jun 30, 2022Jun 30, 2023Jun 30, 2022
Selected Financial Condition Data (at end of period):
Total assets$54,286,176$52,873,511$52,949,649$52,382,939$50,969,332
Total loans (1)
41,023,40839,565,47139,196,48538,167,61337,053,103
Total deposits44,038,70742,718,21142,902,54442,797,19142,593,326
Total shareholders’ equity5,041,9125,015,5064,796,8384,637,9804,727,623
Selected Statements of Income Data:
Net interest income$447,537 $457,995 $456,816 $401,448 $337,804 $905,532 $637,098 
Net revenue (2)
560,567 565,764 550,655 502,930 440,746 1,126,331 902,830 
Net income154,750 180,198 144,817 142,961 94,513 334,948 221,904 
Pre-tax income, excluding provision for credit losses (non-GAAP) (3)
239,944 266,595 242,819 206,461 152,078 506,539 329,864 
Net income per common share – Basic2.41 2.84 2.27 2.24 1.51 5.26 3.61 
Net income per common share – Diluted2.38 2.80 2.23 2.21 1.49 5.18 3.56 
Cash dividends declared per common share0.40 0.40 0.34 0.34 0.34 0.80 0.68 
Selected Financial Ratios and Other Data:
Performance Ratios:
Net interest margin 3.64 %3.81 %3.71 %3.34 %2.92 %3.72 %2.76 %
Net interest margin – fully taxable-equivalent (non-GAAP) (3)
3.66 3.83 3.73 3.35 2.93 3.74 2.77 
Non-interest income to average assets0.86 0.84 0.71 0.79 0.84 0.85 1.08 
Non-interest expense to average assets2.44 2.33 2.34 2.32 2.35 2.39 2.34 
Net overhead ratio (4)
1.58 1.49 1.63 1.53 1.51 1.54 1.25 
Return on average assets1.18 1.40 1.10 1.12 0.77 1.29 0.91 
Return on average common equity12.79 15.67 12.72 12.31 8.53 14.20 10.22 
Return on average tangible common equity (non-GAAP) (3)
15.12 18.55 15.21 14.68 10.36 16.79 12.40 
Average total assets$52,601,953$52,075,318$52,087,618$50,722,694$49,353,426$52,340,090$49,427,225
Average total shareholders’ equity5,044,7184,895,2714,710,8564,795,3874,526,1104,970,407 4,513,356 
Average loans to average deposits ratio 94.3 %93.0 %90.5 %88.8 %86.8 %93.7 %85.3 %
Period-end loans to deposits ratio 93.2 92.6 91.4 89.2 87.0 
Common Share Data at end of period:
Market price per common share$72.62 $72.95 $84.52 $81.55 $80.15 
Book value per common share75.65 75.24 72.12 69.56 71.06 
Tangible book value per common share (non-GAAP) (3)
64.50 64.22 61.00 58.42 59.87 
Common shares outstanding61,197,67661,176,41560,794,00860,743,33560,721,889
Other Data at end of period:
Tier 1 leverage ratio (5)
9.3 %9.1 %8.8 %8.8 %8.8 %
Risk-based capital ratios:
Tier 1 capital ratio (5)
10.1 10.1 10.0 9.9 9.9 
Common equity tier 1 capital ratio (5)
9.2 9.2 9.1 9.0 9.0 
Total capital ratio (5)
11.9 12.1 11.9 11.8 11.9 
Allowance for credit losses (6)
$387,786 $376,261 $357,936 $315,338 $312,192 
Allowance for loan and unfunded lending-related commitment losses to total loans0.94 %0.95 %0.91 %0.83 %0.84 %
Number of:
Bank subsidiaries15 15 15 15 15 
Banking offices175 174 174 174 173 
(1)Excludes mortgage loans held-for-sale.
(2)Net revenue is net interest income and non-interest income.
(3)See Table 17: Supplemental Non-GAAP Financial Measures/Ratios for additional information on this performance measure/ratio.
(4)The net overhead ratio is calculated by netting total non-interest expense and total non-interest income, annualizing this amount, and dividing by that period’s average total assets. A lower ratio indicates a higher degree of efficiency.
(5)Capital ratios for current quarter-end are estimated.
(6)The allowance for credit losses includes the allowance for loan losses, the allowance for unfunded lending-related commitments and the allowance for held-to-maturity securities losses.
12

WINTRUST FINANCIAL CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CONDITION
 
(Unaudited)(Unaudited)(Unaudited)(Unaudited)
Jun 30,Mar 31,Dec 31,Sep 30,Jun 30,
(In thousands)20232023202220222022
Assets
Cash and due from banks$513,858 $445,928 $490,908 $489,590 $498,891 
Federal funds sold and securities purchased under resale agreements59 58 58 57 475,056 
Interest-bearing deposits with banks2,163,708 1,563,578 1,988,719 3,968,605 3,266,541 
Available-for-sale securities, at fair value3,492,481 3,259,845 3,243,017 2,923,653 2,970,121 
Held-to-maturity securities, at amortized cost3,564,473 3,606,391 3,640,567 3,389,842 3,413,469 
Trading account securities3,027 102 1,127 179 1,010 
Equity securities with readily determinable fair value116,275 111,943 110,365 114,012 93,295 
Federal Home Loan Bank and Federal Reserve Bank stock195,117 244,957 224,759 178,156 136,138 
Brokerage customer receivables15,722 16,042 16,387 20,327 21,527 
Mortgage loans held-for-sale, at fair value338,728 302,493 299,935 376,160 513,232 
Loans, net of unearned income41,023,408 39,565,471 39,196,485 38,167,613 37,053,103 
Allowance for loan losses(302,499)(287,972)(270,173)(246,110)(251,769)
Net loans40,720,909 39,277,499 38,926,312 37,921,503 36,801,334 
Premises, software and equipment, net749,393 760,283 764,798 763,029 762,381 
Lease investments, net274,351 256,301 253,928 244,822 223,813 
Accrued interest receivable and other assets1,455,748 1,413,795 1,391,342 1,316,305 1,112,697 
Trade date securities receivable 939,758 921,717 — — 
Goodwill656,674 653,587 653,524 653,079 654,709 
Other acquisition-related intangible assets25,653 20,951 22,186 23,620 25,118 
Total assets$54,286,176 $52,873,511 $52,949,649 $52,382,939 $50,969,332 
Liabilities and Shareholders’ Equity
Deposits:
Non-interest-bearing$10,604,915 $11,236,083 $12,668,160 $13,529,277 $13,855,844 
Interest-bearing33,433,792 31,482,128 30,234,384 29,267,914 28,737,482 
Total deposits44,038,707 42,718,211 42,902,544 42,797,191 42,593,326 
Federal Home Loan Bank advances2,026,071 2,316,071 2,316,071 2,316,071 1,166,071 
Other borrowings665,219 583,548 596,614 447,215 482,787 
Subordinated notes437,628 437,493 437,392 437,260 437,162 
Junior subordinated debentures253,566 253,566 253,566 253,566 253,566 
Accrued interest payable and other liabilities1,823,073 1,549,116 1,646,624 1,493,656 1,308,797 
Total liabilities49,244,264 47,858,005 48,152,811 47,744,959 46,241,709 
Shareholders’ Equity:
Preferred stock412,500 412,500 412,500 412,500 412,500 
Common stock61,219 61,198 60,797 60,743 60,722 
Surplus1,923,623 1,913,947 1,902,474 1,891,621 1,880,913 
Treasury stock(1,966)(1,966)(304)— — 
Retained earnings3,120,626 2,997,263 2,849,007 2,731,844 2,616,525 
Accumulated other comprehensive loss(474,090)(367,436)(427,636)(458,728)(243,037)
Total shareholders’ equity5,041,912 5,015,506 4,796,838 4,637,980 4,727,623 
Total liabilities and shareholders’ equity$54,286,176 $52,873,511 $52,949,649 $52,382,939 $50,969,332 

13

WINTRUST FINANCIAL CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED)
Three Months EndedSix Months Ended
(In thousands, except per share data)Jun 30,
2023
Mar 31,
2023
Dec 31,
2022
Sep 30,
2022
Jun 30,
2022
Jun 30, 2023Jun 30, 2022
Interest income
Interest and fees on loans$621,057 $558,692 $498,838 $402,689 $320,501 $1,179,749 $606,199 
Mortgage loans held-for-sale4,178 3,528 3,997 5,371 5,740 7,706 11,827 
Interest-bearing deposits with banks16,882 13,468 20,349 15,621 5,790 30,350 7,477 
Federal funds sold and securities purchased under resale agreements1 70 1,263 1,845 1,364 71 1,795 
Investment securities51,243 59,943 53,092 38,569 36,541 111,186 68,939 
Trading account securities6 14 20 
Federal Home Loan Bank and Federal Reserve Bank stock3,544 3,680 2,918 2,109 1,823 7,224 3,595 
Brokerage customer receivables265 295 282 267 205 560 379 
Total interest income697,176 639,690 580,745 466,478 371,968 1,336,866 700,220 
Interest expense
Interest on deposits213,495 144,802 95,447 45,916 18,985 358,297 33,839 
Interest on Federal Home Loan Bank advances17,399 19,135 13,823 6,812 4,878 36,534 9,694 
Interest on other borrowings8,485 7,854 5,313 4,008 2,734 16,339 4,973 
Interest on subordinated notes5,523 5,488 5,520 5,485 5,517 11,011 10,999 
Interest on junior subordinated debentures4,737 4,416 3,826 2,809 2,050 9,153 3,617 
Total interest expense249,639 181,695 123,929 65,030 34,164 431,334 63,122 
Net interest income447,537 457,995 456,816 401,448 337,804 905,532 637,098 
Provision for credit losses28,514 23,045 47,646 6,420 20,417 51,559 24,523 
Net interest income after provision for credit losses419,023 434,950 409,170 395,028 317,387 853,973 612,575 
Non-interest income
Wealth management33,858 29,945 30,727 33,124 31,369 63,803 62,763 
Mortgage banking29,981 18,264 17,407 27,221 33,314 48,245 110,545 
Service charges on deposit accounts13,608 12,903 13,054 14,349 15,888 26,511 31,171 
Gains (losses) on investment securities, net0 1,398 (6,745)(3,103)(7,797)1,398 (10,579)
Fees from covered call options2,578 10,391 7,956 1,366 1,069 12,969 4,811 
Trading gains (losses), net106 813 (306)(7)176 919 4,065 
Operating lease income, net12,227 13,046 12,384 12,644 15,007 25,273 30,482 
Other20,672 21,009 19,362 15,888 13,916 41,681 32,474 
Total non-interest income113,030 107,769 93,839 101,482 102,942 220,799 265,732 
Non-interest expense
Salaries and employee benefits184,923 176,781 180,331 176,095 167,326 361,704 339,681 
Software and equipment26,205 24,697 24,699 24,126 24,250 50,902 47,060 
Operating lease equipment9,816 9,833 10,078 9,448 8,774 19,649 18,482 
Occupancy, net19,176 18,486 17,763 17,727 17,651 37,662 35,475 
Data processing9,726 9,409 7,927 7,767 8,010 19,135 15,515 
Advertising and marketing17,794 11,946 14,279 16,600 16,615 29,740 28,539 
Professional fees8,940 8,163 9,267 7,544 7,876 17,103 16,277 
Amortization of other acquisition-related intangible assets1,499 1,235 1,436 1,492 1,579 2,734 3,188 
FDIC insurance9,008 8,669 6,775 7,186 6,949 17,677 14,678 
OREO expenses, net118 (207)369 229 294 (89)(738)
Other33,418 30,157 34,912 28,255 29,344 63,575 54,809 
Total non-interest expense320,623 299,169 307,836 296,469 288,668 619,792 572,966 
Income before taxes211,430 243,550 195,173 200,041 131,661 454,980 305,341 
Income tax expense56,680 63,352 50,356 57,080 37,148 120,032 83,437 
Net income$154,750 $180,198 $144,817 $142,961 $94,513 $334,948 $221,904 
Preferred stock dividends6,991 6,991 6,991 6,991 6,991 13,982 13,982 
Net income applicable to common shares$147,759 $173,207 $137,826 $135,970 $87,522 $320,966 $207,922 
Net income per common share - Basic$2.41 $2.84 $2.27 $2.24 $1.51 $5.26 $3.61 
Net income per common share - Diluted$2.38 $2.80 $2.23 $2.21 $1.49 $5.18 $3.56 
Cash dividends declared per common share$0.40 $0.40 $0.34 $0.34 $0.34 $0.80 $0.68 
Weighted average common shares outstanding61,19260,95060,76960,73858,06361,07257,632
Dilutive potential common shares902 873 1,096 837 775 933 823 
Average common shares and dilutive common shares62,094 61,823 61,865 61,575 58,838 62,005 58,455 
14

TABLE 1: LOAN PORTFOLIO MIX AND GROWTH RATES
   
% Growth From (1)
(Dollars in thousands)Jun 30, 2023Mar 31, 2023Dec 31, 2022Sep 30,
2022
Jun 30, 2022
Dec 31, 2022 (2)
Jun 30, 2022
Balance:
Mortgage loans held-for-sale, excluding early buy-out exercised loans guaranteed by U.S. government agencies$235,570 $155,687 $156,297 $216,062 $294,688 NM(20)%
Mortgage loans held-for-sale, early buy-out exercised loans guaranteed by U.S. government agencies103,158 146,806 143,638 160,098 218,544 (57)(53)
Total mortgage loans held-for-sale$338,728 $302,493 $299,935 $376,160 $513,232 26 %(34)%
Core loans:
Commercial
Commercial and industrial$5,737,633 $5,855,035 $5,852,166 $5,818,959 $5,502,584 (4)%%
Asset-based lending1,465,848 1,482,071 1,473,344 1,545,038 1,552,033 (1)(6)
Municipal653,117 655,301 668,235 608,234 535,586 (5)22 
Leases1,925,767 1,904,137 1,840,928 1,582,359 1,592,329 21 
PPP loans15,337 17,195 28,923 43,658 82,089 (95)(81)
Commercial real estate
Residential construction51,689 69,998 76,877 66,957 55,941 (66)(8)
Commercial construction1,409,751 1,234,762 1,102,098 1,176,407 1,145,602 56 23 
Land298,996 292,293 307,955 282,147 304,775 (6)(2)
Office1,404,422 1,392,040 1,337,176 1,269,729 1,321,745 10 
Industrial2,002,740 1,858,088 1,836,276 1,777,658 1,746,280 18 15 
Retail1,304,083 1,309,680 1,304,444 1,331,316 1,331,059 (2)
Multi-family2,696,478 2,635,411 2,560,709 2,305,433 2,171,583 11 24 
Mixed use and other1,440,652 1,446,806 1,425,412 1,368,537 1,330,220 
Home equity336,974 337,016 332,698 328,822 325,826 
Residential real estate
Residential real estate loans for investment2,455,392 2,309,393 2,207,595 2,086,795 1,965,051 23 25 
Residential mortgage loans, early buy-out eligible loans guaranteed by U.S. government agencies117,024 119,301 80,701 57,161 34,764 91 NM
Residential mortgage loans, early buy-out exercised loans guaranteed by U.S. government agencies70,824 76,851 84,087 91,503 79,092 (32)(10)
Total core loans$23,386,727 $22,995,378 $22,519,624 $21,740,713 $21,076,559 %11 %
Niche loans:
Commercial
Franchise$1,091,164 $1,131,913 $1,169,623 $1,118,478 $1,136,929 (14)%(4)%
Mortgage warehouse lines of credit381,043 235,684 237,392 297,374 398,085 NM(4)
Community Advantage - homeowners association405,042 389,922 380,875 365,967 341,095 13 19 
Insurance agency lending925,520 905,727 897,678 879,183 906,375 
Premium Finance receivables
U.S. property & casualty insurance5,900,228 5,043,486 5,103,820 4,983,795 4,781,042 31 23 
Canada property & casualty insurance862,470 695,394 745,639 729,545 760,405 32 13 
Life insurance8,039,273 8,125,802 8,090,998 8,004,856 7,608,433 (1)
Consumer and other31,941 42,165 50,836 47,702 44,180 (75)(28)
Total niche loans$17,636,681 $16,570,093 $16,676,861 $16,426,900 $15,976,544 12 %10 %
Total loans, net of unearned income$41,023,408 $39,565,471 $39,196,485 $38,167,613 $37,053,103 %11 %
(1)NM - Not meaningful.
(2)Annualized.

15

TABLE 2: DEPOSIT PORTFOLIO MIX AND GROWTH RATES

    % Growth From
(Dollars in thousands)Jun 30,
2023
Mar 31,
2023
Dec 31,
2022
Sep 30,
2022
Jun 30,
2022
Mar 31,
2023
(1)
Jun 30, 2022
Balance:
Non-interest-bearing$10,604,915$11,236,083$12,668,160$13,529,277$13,855,844(23)%(23)%
NOW and interest-bearing demand deposits5,814,8365,576,5585,591,9865,676,1225,918,90817 (2)
Wealth management deposits (2)
1,417,9841,809,9332,463,8332,988,1953,182,407(87)(55)
Money market14,523,12413,552,27712,886,79512,538,48912,273,35029 18 
Savings5,321,5785,192,1084,556,6353,988,7903,686,59610 44 
Time certificates of deposit6,356,2705,351,2524,735,1354,076,3183,676,22175 73 
Total deposits $44,038,707$42,718,211$42,902,544$42,797,191$42,593,32612 %%
Mix:
Non-interest-bearing24 %26 %30 %32 %33 %
NOW and interest-bearing demand deposits13 13 13 13 13 
Wealth management deposits (2)
3 
Money market33 32 30 29 29 
Savings12 12 11 
Time certificates of deposit15 13 11 10 
Total deposits100 %100 %100 %100 %100 %
(1)Annualized.
(2)Represents deposit balances of the Company’s subsidiary banks from brokerage customers of Wintrust Investments, Chicago Deferred Exchange Company, LLC (“CDEC”), trust and asset management customers of the Company.


TABLE 3: TIME CERTIFICATES OF DEPOSIT MATURITY/RE-PRICING ANALYSIS
As of June 30, 2023
(Dollars in thousands)Total Time
Certificates of
Deposit
Weighted-Average
Rate of Maturing
Time Certificates
    of Deposit (1)
1-3 months$1,407,470 3.15 %
4-6 months1,323,183 2.93 
7-9 months1,148,928 3.53 
10-12 months1,543,622 4.39 
13-18 months595,056 3.25 
19-24 months250,020 2.87 
24+ months87,991 1.99 
Total$6,356,270 3.46 %
(1)Weighted-average rate excludes the impact of purchase accounting fair value adjustments.

16

TABLE 4: QUARTERLY AVERAGE BALANCES
 Average Balance for three months ended,
 Jun 30,Mar 31,Dec 31,Sep 30,Jun 30,
(In thousands)20232023202220222022
Interest-bearing deposits with banks, securities purchased under resale agreements and cash equivalents (1)
$1,454,057 $1,235,748 $2,449,889 $3,039,907 $3,265,607 
Investment securities (2)
7,252,582 7,956,722 7,310,383 6,655,215 6,589,947 
FHLB and FRB stock223,813 233,615 185,290 142,304 136,930 
Liquidity management assets (3)
8,930,452 9,426,085 9,945,562 9,837,426 9,992,484 
Other earning assets (3)(4)
17,401 18,445 18,585 21,805 24,059 
Mortgage loans held-for-sale307,683 270,966 308,639 455,342 560,707 
Loans, net of unearned income (3)(5)
40,106,393 39,093,368 38,566,871 37,431,126 35,860,329 
Total earning assets (3)
49,361,929 48,808,864 48,839,657 47,745,699 46,437,579 
Allowance for loan and investment security losses(302,627)(282,704)(252,827)(260,270)(260,547)
Cash and due from banks481,510 488,457 475,691 458,263 476,741 
Other assets3,061,141 3,060,701 3,025,097 2,779,002 2,699,653 
Total assets
$52,601,953 $52,075,318 $52,087,618 $50,722,694 $49,353,426 
NOW and interest-bearing demand deposits$5,540,597 $5,271,740 $5,598,291 $5,789,368 $5,230,702 
Wealth management deposits1,545,626 2,167,081 2,883,247 3,078,764 2,835,267 
Money market accounts13,735,924 12,533,468 12,319,842 12,037,412 11,892,948 
Savings accounts5,206,609 4,830,322 4,403,113 3,862,579 3,882,856 
Time deposits5,603,024 5,041,638 4,023,232 3,675,930 3,687,778 
Interest-bearing deposits31,631,780 29,844,249 29,227,725 28,444,053 27,529,551 
Federal Home Loan Bank advances2,227,106 2,474,882 2,088,201 1,403,573 1,197,390 
Other borrowings625,757 602,937 480,553 478,909 489,779 
Subordinated notes437,545 437,422 437,312 437,191 437,084 
Junior subordinated debentures253,566 253,566 253,566 253,566 253,566 
Total interest-bearing liabilities
35,175,754 33,613,056 32,487,357 31,017,292 29,907,370 
Non-interest-bearing deposits10,908,022 12,171,631 13,404,036 13,731,219 13,805,128 
Other liabilities1,473,459 1,395,360 1,485,369 1,178,796 1,114,818 
Equity5,044,718 4,895,271 4,710,856 4,795,387 4,526,110 
Total liabilities and shareholders’ equity
$52,601,953 $52,075,318 $52,087,618 $50,722,694 $49,353,426 
Net free funds/contribution (6)
$14,186,175 $15,195,808 $16,352,300 $16,728,407 $16,530,209 
(1)Includes interest-bearing deposits from banks and securities purchased under resale agreements with original maturities of greater than three months. Cash equivalents include federal funds sold and securities purchased under resale agreements with original maturities of three months or less.
(2)Investment securities includes investment securities classified as available-for-sale and held-to-maturity, and equity securities with readily determinable fair values. Equity securities without readily determinable fair values are included within other assets.
(3)See Table 17: Supplemental Non-GAAP Financial Measures/Ratios for additional information on this performance measure/ratio.
(4)Other earning assets include brokerage customer receivables and trading account securities.
(5)Loans, net of unearned income, include non-accrual loans.
(6)Net free funds are the difference between total average earning assets and total average interest-bearing liabilities. The estimated contribution to net interest margin from net free funds is calculated using the rate paid for total interest-bearing liabilities.

17

TABLE 5: QUARTERLY NET INTEREST INCOME

 Net Interest Income for three months ended,
 Jun 30,Mar 31,Dec 31,Sep 30,Jun 30,
(In thousands)20232023202220222022
Interest income:
Interest-bearing deposits with banks, securities purchased under resale agreements and cash equivalents$16,882 $13,538 $21,612 $17,466 $7,154 
Investment securities51,795 60,494 53,630 39,071 37,013 
FHLB and FRB stock3,544 3,680 2,918 2,109 1,823 
Liquidity management assets (1)
72,221 77,712 78,160 58,646 45,990 
Other earning assets (1)
272 313 289 275 210 
Mortgage loans held-for-sale4,178 3,528 3,997 5,371 5,740 
Loans, net of unearned income (1)
622,939 560,564 500,432 403,719 321,069 
Total interest income$699,610 $642,117 $582,878 $468,011 $373,009 
Interest expense:
NOW and interest-bearing demand deposits$29,178 $18,772 $14,982 $8,041 $2,553 
Wealth management deposits9,097 12,258 14,079 11,068 3,685 
Money market accounts106,630 68,276 45,468 18,916 8,559 
Savings accounts25,603 15,816 8,421 2,130 347 
Time deposits42,987 29,680 12,497 5,761 3,841 
Interest-bearing deposits213,495 144,802 95,447 45,916 18,985 
Federal Home Loan Bank advances17,399 19,135 13,823 6,812 4,878 
Other borrowings8,485 7,854 5,313 4,008 2,734 
Subordinated notes5,523 5,488 5,520 5,485 5,517 
Junior subordinated debentures4,737 4,416 3,826 2,809 2,050 
Total interest expense$249,639 $181,695 $123,929 $65,030 $34,164 
Less: Fully taxable-equivalent adjustment(2,434)(2,427)(2,133)(1,533)(1,041)
Net interest income (GAAP) (2)
447,537 457,995 456,816 401,448 337,804 
Fully taxable-equivalent adjustment2,434 2,427 2,133 1,533 1,041 
Net interest income, fully taxable-equivalent (non-GAAP) (2)
$449,971 $460,422 $458,949 $402,981 $338,845 
(1)Interest income on tax-advantaged loans, trading securities and investment securities reflects a taxable-equivalent adjustment based on the marginal federal corporate tax rate in effect as of the applicable period.
(2)See Table 17: Supplemental Non-GAAP Financial Measures/Ratios for additional information on this performance measure/ratio.

18

TABLE 6: QUARTERLY NET INTEREST MARGIN

 Net Interest Margin for three months ended,
Jun 30, 2023Mar 31, 2023Dec 31,
2022
Sep 30, 2022Jun 30,
2022
Yield earned on:
Interest-bearing deposits with banks, securities purchased under resale agreements and cash equivalents4.66 %4.44 %3.50 %2.28 %0.88 %
Investment securities2.86 3.08 2.91 2.33 2.25 
FHLB and FRB stock6.35 6.39 6.25 5.88 5.34 
Liquidity management assets3.24 3.34 3.12 2.37 1.85 
Other earning assets6.27 6.87 6.17 5.01 3.49 
Mortgage loans held-for-sale5.45 5.28 5.14 4.68 4.11 
Loans, net of unearned income6.23 5.82 5.15 4.28 3.59 
Total earning assets5.68 %5.34 %4.73 %3.89 %3.22 %
Rate paid on:
NOW and interest-bearing demand deposits2.11 %1.44 %1.06 %0.55 %0.20 %
Wealth management deposits2.36 2.29 1.94 1.43 0.52 
Money market accounts3.11 2.21 1.46 0.62 0.29 
Savings accounts1.97 1.33 0.76 0.22 0.04 
Time deposits3.08 2.39 1.23 0.62 0.42 
Interest-bearing deposits2.71 1.97 1.30 0.64 0.28 
Federal Home Loan Bank advances3.13 3.14 2.63 1.93 1.63 
Other borrowings5.44 5.28 4.39 3.32 2.24 
Subordinated notes5.06 5.02 5.05 5.02 5.05 
Junior subordinated debentures7.49 6.97 5.90 4.33 3.20 
Total interest-bearing liabilities2.85 %2.19 %1.51 %0.83 %0.46 %
Interest rate spread (1)(2)
2.83 %3.15 %3.22 %3.06 %2.76 %
Less: Fully taxable-equivalent adjustment(0.02)(0.02)(0.02)(0.01)(0.01)
Net free funds/contribution (3)
0.83 0.68 0.51 0.29 0.17 
Net interest margin (GAAP) (2)
3.64 %3.81 %3.71 %3.34 %2.92 %
Fully taxable-equivalent adjustment0.02 0.02 0.02 0.01 0.01 
Net interest margin, fully taxable-equivalent (non-GAAP) (2)
3.66 %3.83 %3.73 %3.35 %2.93 %
(1)Interest rate spread is the difference between the yield earned on earning assets and the rate paid on interest-bearing liabilities.
(2)See Table 17: Supplemental Non-GAAP Financial Measures/Ratios for additional information on this performance measure/ratio.
(3)Net free funds are the difference between total average earning assets and total average interest-bearing liabilities. The estimated contribution to net interest margin from net free funds is calculated using the rate paid for total interest-bearing liabilities.




19

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

 
Average Balance
for six months ended,
Interest
for six months ended,
Yield/Rate
for six months ended,
(Dollars in thousands)Jun 30, 2023Jun 30,
2022
Jun 30, 2023Jun 30, 2022Jun 30, 2023Jun 30, 2022
Interest-bearing deposits with banks, securities purchased under resale agreements and cash equivalents (1)
$1,345,506 $3,911,080 $30,421 $9,272 4.56 %0.48 %
Investment securities (2)
7,602,707 6,484,570 112,288 69,876 2.98 2.17 
FHLB and FRB stock228,687 136,424 7,224 3,595 6.37 5.31 
Liquidity management assets (3)(4)
$9,176,900 $10,532,074 $149,933 $82,743 3.29 %1.58 %
Other earning assets (3)(4)(5)
17,920 24,622 585 391 6.58 3.20 
Mortgage loans held-for-sale289,426 612,078 7,706 11,827 5.37 3.90 
Loans, net of unearned income (3)(4)(6)
39,602,672 35,348,269 1,183,503 607,194 6.03 3.46 
Total earning assets (4)
$49,086,918 $46,517,043 $1,341,727 $702,155 5.51 %3.04 %
Allowance for loan and investment security losses(292,721)(256,834)
Cash and due from banks484,964 479,174 
Other assets3,060,929 2,687,842 
Total assets
$52,340,090 $49,427,225 
NOW and interest-bearing demand deposits$5,406,911 $5,010,709 $47,949 $4,543 1.79 %0.18 %
Wealth management deposits1,854,637 2,671,444 21,355 4,603 2.32 0.35 
Money market accounts13,138,018 12,330,943 174,907 16,207 2.68 0.27 
Savings accounts5,019,505 3,893,519 41,419 683 1.66 0.04 
Time deposits5,323,882 3,774,095 72,667 7,803 2.75 0.42 
Interest-bearing deposits$30,742,953 $27,680,710 $358,297 $33,839 2.35 %0.25 %
Federal Home Loan Bank advances2,350,309 1,219,110 36,534 9,694 3.13 1.60 
Other borrowings614,410 492,011 16,338 4,973 5.36 2.04 
Subordinated notes437,484 437,025 11,011 10,999 5.08 5.03 
Junior subordinated debentures253,566 253,566 9,154 3,617 7.28 2.84 
Total interest-bearing liabilities
$34,398,722 $30,082,422 $431,334 $63,122 2.53 %0.42 %
Non-interest-bearing deposits11,536,336 13,769,792 
Other liabilities1,434,625 1,061,655 
Equity4,970,407 4,513,356 
Total liabilities and shareholders’ equity
$52,340,090 $49,427,225 
Interest rate spread (4)(7)
2.98 %2.62 %
Less: Fully taxable-equivalent adjustment(4,861)(1,935)(0.02)(0.01)
Net free funds/contribution (8)
$14,688,196 $16,434,621 0.76 0.15 
Net interest income/margin (GAAP) (4)
$905,532 $637,098 3.72 %2.76 %
Fully taxable-equivalent adjustment4,861 1,9350.02 0.01 
Net interest income/margin, fully taxable-equivalent (non-GAAP) (4)
$910,393 $639,033 3.74 %2.77 %
(1)Includes interest-bearing deposits from banks and securities purchased under resale agreements with original maturities of greater than three months. Cash equivalents include federal funds sold and securities purchased under resale agreements with original maturities of three months or less.
(2)Investment securities includes investment securities classified as available-for-sale and held-to-maturity, and equity securities with readily determinable fair values. Equity securities without readily determinable fair values are included within other assets.
(3)Interest income on tax-advantaged loans, trading securities and investment securities reflects a taxable-equivalent adjustment based on the marginal federal corporate tax rate in effect as of the applicable period.
(4)See Table 17: Supplemental Non-GAAP Financial Measures/Ratios for additional information on this performance measure/ratio.
(5)Other earning assets include brokerage customer receivables and trading account securities.
(6)Loans, net of unearned income, include non-accrual loans.
(7)Interest rate spread is the difference between the yield earned on earning assets and the rate paid on interest-bearing liabilities.
(8)Net free funds are the difference between total average earning assets and total average interest-bearing liabilities. The estimated contribution to net interest margin from net free funds is calculated using the rate paid for total interest-bearing liabilities.
20

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
Jun 30, 20235.7 %2.9 %(2.9)%(7.9)%
Mar 31, 20234.2 2.4 (2.4)(7.3)
Dec 31, 20227.2 3.8 (5.0)(12.1)
Sep 30, 202212.9 7.1 (8.7)(18.9)
Jun 30, 202217.0 9.0 (12.6)(23.8)

Ramp Scenario+200 Basis Points+100 Basis Points-100 Basis Points-200 Basis Points
Jun 30, 20232.9 %1.8 %(0.9)%(3.4)%
Mar 31, 20233.0 1.7 (1.3)(3.4)
Dec 31, 20225.6 3.0 (2.9)(6.8)
Sep 30, 20226.5 3.6 (3.9)(8.6)
Jun 30, 202210.2 5.3 (6.9)(14.3)

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


21

TABLE 9: MATURITIES AND SENSITIVITIES TO CHANGES IN INTEREST RATES
Loans repricing or maturity period
As of June 30, 2023One year or
less
From one to
five years
From five to fifteen yearsAfter fifteen yearsTotal
(In thousands)
Commercial
Fixed rate$491,950 $2,588,577 $1,707,423 $11,360 $4,799,310 
Variable rate7,799,656 1,505   7,801,161 
Total commercial$8,291,606 $2,590,082 $1,707,423 $11,360 $12,600,471 
Commercial real estate
Fixed rate580,938 2,884,383 573,579 51,683 4,090,583 
Variable rate6,509,558 8,631 39  6,518,228 
Total commercial real estate$7,090,496 $2,893,014 $573,618 $51,683 $10,608,811 
Home equity
Fixed rate11,132 2,682  31 13,845 
Variable rate323,129    323,129 
Total home equity$334,261 $2,682 $ $31 $336,974 
Residential real estate
Fixed rate16,724 3,824 30,511 1,072,690 1,123,749 
Variable rate73,672 263,888 1,181,931  1,519,491 
Total residential real estate$90,396 $267,712 $1,212,442 $1,072,690 $2,643,240 
Premium finance receivables - property & casualty
Fixed rate6,657,042 105,656   6,762,698 
Variable rate     
Total premium finance receivables - property & casualty$6,657,042 $105,656 $ $ $6,762,698 
Premium finance receivables - life insurance
Fixed rate121,092 547,337 22,242  690,671 
Variable rate7,348,602    7,348,602 
Total premium finance receivables - life insurance$7,469,694 $547,337 $22,242 $ $8,039,273 
Consumer and other
Fixed rate4,420 3,912 60 301 8,693 
Variable rate23,248    23,248 
Total consumer and other$27,668 $3,912 $60 $301 $31,941 
Total per category
Fixed rate7,883,298 6,136,371 2,333,815 1,136,065 17,489,549 
Variable rate22,077,865 274,024 1,181,970  23,533,859 
Total loans, net of unearned income$29,961,163 $6,410,395 $3,515,785 $1,136,065 $41,023,408 
Variable Rate Loan Pricing by Index:
SOFR tenors$10,407,621 
One- year CMT5,819,451 
One- month LIBOR1,707,349 
Three- month LIBOR10,276 
Twelve- month LIBOR1,028,904 
Prime3,932,654 
Ameribor tenors356,300 
Other U.S. Treasury tenors46,387 
BSBY tenors49,436 
Other175,481 
Total variable rate$23,533,859 
SOFR - Secured Overnight Financing Rate.
CMT - Constant Maturity Treasury Rate.
LIBOR - London Interbank Offered Rate.
Ameribor - American Interbank Offered Rate.
BSBY - Bloomberg Short Term Bank Yield Index.


22


liborerq22023a.jpg
Source: Bloomberg

As noted in the table on the previous page, the majority of the Company’s portfolio is tied to SOFR, CMT and LIBOR indices which, as shown in the table above, do not mirror the same changes as the Prime rate which has historically moved when the Federal Reserve raises or lowers interest rates. Specifically, the Company has variable rate loans of $7.8 billion tied to one-month SOFR, $5.8 billion tied to one-year CMT and $1.7 billion tied to one-month LIBOR. The above chart shows:

Basis Point (bp) Change in
1-month
SOFR
1-year CMT1-month
LIBOR
Prime
Second Quarter 202334bps76bps36bps25bps
First Quarter 202344-94750
Fourth Quarter 202213268125125
Third Quarter 2022135125135150
Second Quarter 2022139117134125


23

TABLE 10: ALLOWANCE FOR CREDIT LOSSES
Three Months EndedSix Months Ended
Jun 30,Mar 31,Dec 31,Sep 30,Jun 30,Jun 30,Jun 30,
(Dollars in thousands)2023202320222022202220232022
Allowance for credit losses at beginning of period$376,261 $357,936 $315,338 $312,192 $301,327 $357,936 $299,731 
Cumulative effect adjustment from the adoption of ASU 2022-02 741 — — — 741 — 
Provision for credit losses28,514 23,045 47,646 6,420 20,417 51,559 24,523 
Other adjustments41 31 (105)(56)45 (34)
Charge-offs:
Commercial5,629 2,543 3,019 780 8,928 8,172 10,342 
Commercial real estate8,124 538 24 40 8,129 817 
Home equity — — 43 192  389 
Residential real estate — — —  466 
Premium finance receivables - property & casualty4,519 4,629 3,629 6,037 2,903 9,148 4,574 
Premium finance receivables - life insurance134 21 28 — — 155 
Consumer and other110 153 — 635 253 263 446 
Total charge-offs18,516 7,351 7,214 7,524 12,316 25,867 17,041 
Recoveries:
Commercial505 392 691 2,523 996 897 1,534 
Commercial real estate25 100 61 55 553 125 585 
Home equity37 35 65 38 123 72 216 
Residential real estate6 60 10 11 
Premium finance receivables - property & casualty890 1,314 1,279 1,648 1,119 2,204 2,595 
Premium finance receivables - life insurance — — — 9 — 
Consumer and other23 32 33 31 23 55 72 
Total recoveries1,486 1,886 2,135 4,355 2,820 3,372 5,013 
Net charge-offs(17,030)(5,465)(5,079)(3,169)(9,496)(22,495)(12,028)
Allowance for credit losses at period end$387,786 $376,261 $357,936 $315,338 $312,192 $387,786 $312,192 
Annualized net charge-offs (recoveries) by category as a percentage of its own respective category’s average:
Commercial0.16 %0.07 %0.08 %(0.06)%0.27 %0.12 %0.15 %
Commercial real estate0.31 0.00 0.02 0.00 (0.02)0.16 0.01 
Home equity(0.04)(0.04)(0.08)0.01 0.09 (0.04)0.11 
Residential real estate0.00 0.00 0.00 (0.01)0.00 0.00 0.05 
Premium finance receivables - property & casualty0.24 0.23 0.16 0.30 0.14 0.24 0.02 
Premium finance receivables - life insurance0.01 0.00 0.00 — — 0.00 0.00 
Consumer and other0.45 0.74 (0.16)4.02 1.31 0.58 1.26 
Total loans, net of unearned income0.17 %0.06 %0.05 %0.03 %0.11 %0.11 %0.07 %
Loans at period end$41,023,408 $39,565,471 $39,196,485 $38,167,613 $37,053,103 
Allowance for loan losses as a percentage of loans at period end0.74 %0.73 %0.69 %0.64 %0.68 %
Allowance for loan and unfunded lending-related commitment losses as a percentage of loans at period end0.94 0.95 0.91 0.83 0.84 
24

TABLE 11: ALLOWANCE AND PROVISION FOR CREDIT LOSSES BY COMPONENT

Three Months EndedSix Months Ended
Jun 30,Mar 31,Dec 31,Sep 30,Jun 30,Jun 30,Jun 30,
(In thousands)2023202320222022202220232022
Provision for loan losses$31,516 $22,520 $29,110 $(2,385)$10,782 $54,036 $15,996 
Provision for unfunded lending-related commitments losses(2,945)550 18,358 8,578 9,711 (2,395)8,522 
Provision for held-to-maturity securities losses(57)(25)178 227 (76)(82)
Provision for credit losses$28,514 $23,045 $47,646 $6,420 $20,417 $51,559 $24,523 
Allowance for loan losses$302,499 $287,972 $270,173 $246,110 $251,769 
Allowance for unfunded lending-related commitments losses84,881 87,826 87,275 68,918 60,340 
Allowance for loan losses and unfunded lending-related commitments losses387,380 375,798 357,448 315,028 312,109 
Allowance for held-to-maturity securities losses406 463 488 310 83 
Allowance for credit losses$387,786 $376,261 $357,936 $315,338 $312,192 
    


25

TABLE 12: ALLOWANCE BY LOAN PORTFOLIO

The table below summarizes the calculation of allowance for loan losses and allowance for unfunded lending-related commitments losses for the Company’s loan portfolios as well as core and niche portfolios, as of June 30, 2023, March 31, 2023 and December 31, 2022.
 As of Jun 30, 2023As of Mar 31, 2023As of Dec 31, 2022
(Dollars in thousands)Recorded
Investment
Calculated
Allowance
% of its
category’s balance
Recorded
Investment
Calculated
Allowance
% of its
category’s balance
Recorded
Investment
Calculated
Allowance
% of its
category’s balance
Commercial:
Commercial, industrial and other$12,600,471 $143,142 1.14 %$12,576,985 $149,501 1.19 %$12,549,164 $142,769 1.14 %
Commercial real estate:
Construction and development1,760,436 86,725 4.93 1,597,053 75,069 4.70 1,486,930 75,907 5.10 
Non-construction8,848,375 128,971 1.46 8,642,025 119,711 1.39 8,464,017 108,445 1.28 
Home equity336,974 6,967 2.07 337,016 7,728 2.29 332,698 7,573 2.28 
Residential real estate2,643,240 12,252 0.46 2,505,545 11,434 0.46 2,372,383 11,585 0.49 
Premium finance receivables
Commercial insurance loans6,762,698 8,347 0.12 5,738,880 11,248 0.20 5,849,459 9,967 0.17 
Life insurance loans8,039,273 699 0.01 8,125,802 707 0.01 8,090,998 704 0.01 
Consumer and other31,941 277 0.87 42,165 400 0.95 50,836 498 0.98 
Total loans, net of unearned income$41,023,408 $387,380 0.94 %$39,565,471 $375,798 0.95 %$39,196,485 $357,448 0.91 %
Total core loans (1)
$23,386,727 $350,930 1.50 %$22,995,378 $334,910 1.46 %$22,519,624 $320,403 1.42 %
Total niche loans (1)
17,636,681 36,450 0.21 16,570,093 40,888 0.25 16,676,861 37,045 0.22 
(1)See Table 1 for additional detail on core and niche loans.


26

TABLE 13: LOAN PORTFOLIO AGING

(In thousands)Jun 30, 2023Mar 31, 2023Dec 31, 2022Sep 30, 2022Jun 30, 2022
Loan Balances:
Commercial
Nonaccrual$40,460 $47,950 $35,579 $44,293 $32,436 
90+ days and still accruing573 — 462 237 — 
60-89 days past due22,808 10,755 21,128 24,641 16,789 
30-59 days past due48,970 95,593 56,696 34,917 14,120 
Current12,487,660 12,422,687 12,435,299 12,155,162 11,983,760 
Total commercial$12,600,471 $12,576,985 $12,549,164 $12,259,250 $12,047,105 
Commercial real estate
Nonaccrual$18,483 $11,196 $6,387 $10,477 $10,718 
90+ days and still accruing — — — — 
60-89 days past due1,054 20,539 2,244 6,041 6,771 
30-59 days past due14,218 72,680 30,675 29,971 34,220 
Current10,575,056 10,134,663 9,911,641 9,531,695 9,355,496 
Total commercial real estate$10,608,811 $10,239,078 $9,950,947 $9,578,184 $9,407,205 
Home equity
Nonaccrual$1,361 $1,190 $1,487 $1,320 $1,084 
90+ days and still accruing110 — — — — 
60-89 days past due316 116 — 125 154 
30-59 days past due601 1,118 2,152 848 930 
Current334,586 334,592 329,059 326,529 323,658 
Total home equity$336,974 $337,016 $332,698 $328,822 $325,826 
Residential real estate
Early buy-out loans guaranteed by U.S. government agencies (1)
$187,848 $196,152 $164,788 $148,664 $113,856 
Nonaccrual13,652 11,333 10,171 9,787 8,330 
90+ days and still accruing 104 — — — 
60-89 days past due7,243 74 4,364 2,149 534 
30-59 days past due872 19,183 9,982 15 147 
Current2,433,625 2,278,699 2,183,078 2,074,844 1,956,040 
Total residential real estate$2,643,240 $2,505,545 $2,372,383 $2,235,459 $2,078,907 
Premium finance receivables - property & casualty
Nonaccrual$19,583 $18,543 $13,470 $13,026 $13,303 
90+ days and still accruing12,785 9,215 15,841 16,624 6,447 
60-89 days past due22,670 14,287 14,926 15,301 15,299 
30-59 days past due32,751 32,545 40,557 21,128 23,313 
Current6,674,909 5,664,290 5,764,665 5,647,261 5,483,085 
Total Premium finance receivables - property & casualty$6,762,698 $5,738,880 $5,849,459 $5,713,340 $5,541,447 
Premium finance receivables - life insurance
Nonaccrual$6 $— $— $— $— 
90+ days and still accruing1,667 1,066 17,245 1,831 — 
60-89 days past due3,729 21,552 5,260 13,628 1,796 
30-59 days past due90,117 52,975 68,725 44,954 65,155 
Current7,943,754 8,050,209 7,999,768 7,944,443 7,541,482 
Total Premium finance receivables - life insurance$8,039,273 $8,125,802 $8,090,998 $8,004,856 $7,608,433 
Consumer and other
Nonaccrual$4 $$$$
90+ days and still accruing28 87 49 31 25 
60-89 days past due51 10 18 26 
30-59 days past due146 379 224 343 119 
Current31,712 41,683 50,539 47,295 44,020 
Total consumer and other$31,941 $42,165 $50,836 $47,702 $44,180 
Total loans, net of unearned income
Early buy-out loans guaranteed by U.S. government agencies (1)
$187,848 $196,152 $164,788 $148,664 $113,856 
Nonaccrual93,549 90,218 67,100 78,910 65,879 
90+ days and still accruing15,163 10,472 33,597 18,723 6,472 
60-89 days past due57,871 67,333 47,940 61,911 41,351 
30-59 days past due187,675 274,473 209,011 132,176 138,004 
Current40,481,302 38,926,823 38,674,049 37,727,229 36,687,541 
Total loans, net of unearned income$41,023,408 $39,565,471 $39,196,485 $38,167,613 $37,053,103 
(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.
27

TABLE 14: NON-PERFORMING ASSETS(1)
Jun 30,Mar 31,Dec 31,Sep 30,Jun 30,
(Dollars in thousands)20232023202220222022
Loans past due greater than 90 days and still accruing:
Commercial$573 $— $462 $237 $— 
Commercial real estate — — — — 
Home equity110 — — — — 
Residential real estate 104 — — — 
Premium finance receivables - property & casualty12,785 9,215 15,841 16,624 6,447 
Premium finance receivables - life insurance1,667 1,066 17,245 1,831 — 
Consumer and other28 87 49 31 25 
Total loans past due greater than 90 days and still accruing15,163 10,472 33,597 18,723 6,472 
Non-accrual loans:
Commercial40,460 47,950 35,579 44,293 32,436 
Commercial real estate18,483 11,196 6,387 10,477 10,718 
Home equity1,361 1,190 1,487 1,320 1,084 
Residential real estate13,652 11,333 10,171 9,787 8,330 
Premium finance receivables - property & casualty19,583 18,543 13,470 13,026 13,303 
Premium finance receivables - life insurance6 — — — — 
Consumer and other4 
Total non-accrual loans93,549 90,218 67,100 78,910 65,879 
Total non-performing loans:
Commercial41,033 47,950 36,041 44,530 32,436 
Commercial real estate18,483 11,196 6,387 10,477 10,718 
Home equity1,471 1,190 1,487 1,320 1,084 
Residential real estate13,652 11,437 10,171 9,787 8,330 
Premium finance receivables - property & casualty32,368 27,758 29,311 29,650 19,750 
Premium finance receivables - life insurance1,673 1,066 17,245 1,831 — 
Consumer and other32 93 55 38 33 
Total non-performing loans$108,712 $100,690 $100,697 $97,633 $72,351 
Other real estate owned10,275 8,050 8,589 5,376 5,574 
Other real estate owned - from acquisitions1,311 1,311 1,311 1,311 1,265 
Other repossessed assets — — — — 
Total non-performing assets$120,298 $110,051 $110,597 $104,320 $79,190 
Total non-performing loans by category as a percent of its own respective category’s period-end balance:
Commercial0.33 %0.38 %0.29 %0.36 %0.27 %
Commercial real estate0.17 0.11 0.06 0.11 0.11 
Home equity0.44 0.35 0.45 0.40 0.33 
Residential real estate0.52 0.46 0.43 0.44 0.40 
Premium finance receivables - property & casualty0.48 0.48 0.50 0.52 0.36 
Premium finance receivables - life insurance0.02 0.01 0.21 0.02 — 
Consumer and other0.10 0.22 0.11 0.08 0.07 
Total loans, net of unearned income0.26 %0.25 %0.26 %0.26 %0.20 %
Total non-performing assets as a percentage of total assets0.22 %0.21 %0.21 %0.20 %0.16 %
Allowance for loan losses and unfunded lending-related commitments losses as a percentage of non-accrual loans414.09 %416.54 %532.71 %399.22 %473.76 %
(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.


28

Non-performing Loans Rollforward, excluding early buy-out loans guaranteed by U.S. government agencies
 Three Months EndedSix Months Ended
 Jun 30,Mar 31,Dec 31,Sep 30,Jun 30,Jun 30,Jun 30,
(In thousands)2023202320222022202220232022
Balance at beginning of period$100,690 $100,697 $97,633 $72,351 $57,305 $100,697 $74,438 
Additions from becoming non-performing in the respective period21,246 24,455 10,027 35,234 22,841 45,701 26,982 
Return to performing status(360)(480)(1,167)(154)(1,000)(840)(1,729)
Payments received(12,314)(5,261)(16,351)(20,417)(4,029)(17,575)(24,168)
Transfer to OREO and other repossessed assets(2,958)— (3,365)(185)(1,611)(2,958)(5,988)
Charge-offs, net(2,696)(1,159)(1,363)(341)(1,969)(3,855)(4,323)
Net change for niche loans (1)
5,104 (17,562)15,283 11,145 814 (12,458)7,139 
Balance at end of period$108,712 $100,690 $100,697 $97,633 $72,351 $108,712 $72,351 
(1)Includes activity for premium finance receivables and indirect consumer loans.

Other Real Estate Owned
 Three Months Ended
 Jun 30,Mar 31,Dec 31,Sep 30,Jun 30,
(In thousands)20232023202220222022
Balance at beginning of period$9,361 $9,900 $6,687 $6,839 $6,203 
Disposals/resolved(733)(435)(152)(133)(1,172)
Transfers in at fair value, less costs to sell2,958 — 3,365 134 2,090 
Fair value adjustments (104)— (153)(282)
Balance at end of period$11,586 $9,361 $9,900 $6,687 $6,839 
 Period End
 Jun 30,Mar 31,Dec 31,Sep 30,Jun 30,
Balance by Property Type:20232023202220222022
Residential real estate$318 $1,051 $1,585 $1,585 $1,630 
Residential real estate development — — — 133 
Commercial real estate11,268 8,310 8,315 5,102 5,076 
Total$11,586 $9,361 $9,900 $6,687 $6,839 
29

TABLE 15: NON-INTEREST INCOME
Three Months Ended
Q2 2023 compared to
Q1 2023
Q2 2023 compared to
Q2 2022
Jun 30,Mar 31,Dec 31,Sep 30,Jun 30,
(Dollars in thousands)20232023202220222022$ Change% Change$ Change% Change
Brokerage$4,404 $4,533 $4,177 $4,587 $4,272 $(129)(3)%$132 %
Trust and asset management29,454 25,412 26,550 28,537 27,097 4,042 16 2,357 
Total wealth management33,858 29,945 30,727 33,124 31,369 3,913 13 2,489 
Mortgage banking29,981 18,264 17,407 27,221 33,314 11,717 64 (3,333)(10)
Service charges on deposit accounts13,608 12,903 13,054 14,349 15,888 705 (2,280)(14)
Gains (losses) on investment securities, net0 1,398 (6,745)(3,103)(7,797)(1,398)(100)7,797 (100)
Fees from covered call options2,578 10,391 7,956 1,366 1,069 (7,813)(75)1,509 NM
Trading gains (losses), net106 813 (306)(7)176 (707)(87)(70)(40)
Operating lease income, net12,227 13,046 12,384 12,644 15,007 (819)(6)(2,780)(19)
Other:
Interest rate swap fees2,711 2,606 2,319 1,997 3,300 105 (589)(18)
BOLI1,322 1,351 1,394 248 (884)(29)(2)2,206 NM
Administrative services1,319 1,615 1,736 1,533 1,591 (296)(18)(272)(17)
Foreign currency remeasurement gains (losses) 543 (188)277 (93)97 731 NM446 NM
Early pay-offs of capital leases201 365 131 138 160 (164)(45)41 26 
Miscellaneous14,576 15,260 13,505 12,065 9,652 (684)(4)4,924 51 
Total Other20,672 21,009 19,362 15,888 13,916 (337)(2)6,756 49 
Total Non-Interest Income$113,030 $107,769 $93,839 $101,482 $102,942 $5,261 %$10,088 10 %


Six Months Ended
Jun 30,Jun 30,$%
(Dollars in thousands)20232022ChangeChange
Brokerage$8,937 $8,904 $33 %
Trust and asset management54,866 53,859 1,007 
Total wealth management63,803 62,763 1,040 
Mortgage banking48,245 110,545 (62,300)(56)
Service charges on deposit accounts26,511 31,171 (4,660)(15)
Gains (losses) on investment securities, net1,398 (10,579)11,977 NM
Fees from covered call options12,969 4,811 8,158 NM
Trading gains, net919 4,065 (3,146)(77)
Operating lease income, net25,273 30,482 (5,209)(17)
Other:
Interest rate swap fees5,317 7,869 (2,552)(32)
BOLI2,673 (836)3,509 NM
Administrative services2,934 3,444 (510)(15)
Foreign currency remeasurement gains 355 108 247 NM
Early pay-offs of leases566 425 141 33 
Miscellaneous29,836 21,464 8,372 39 
Total Other41,681 32,474 9,207 28 
Total Non-Interest Income$220,799 $265,732 $(44,933)(17)%
NM - Not meaningful.
BOLI - Bank-owned life insurance.
30

TABLE 16: NON-INTEREST EXPENSE
Three Months Ended
Q2 2023 compared to
Q1 2023
Q2 2023 compared to
Q2 2022
Jun 30,Mar 31,Dec 31,Sep 30,Jun 30,
(Dollars in thousands)20232023202220222022$ Change% Change$ Change% Change
Salaries and employee benefits:
Salaries$107,671 $108,354 $100,232 $97,419 $92,414 $(683)(1)%$15,257 17 %
Commissions and incentive compensation44,511 39,799 49,546 50,403 46,131 4,712 12 (1,620)(4)
Benefits32,741 28,628 30,553 28,273 28,781 4,113 14 3,960 14 
Total salaries and employee benefits184,923 176,781 180,331 176,095 167,326 8,142 17,597 11 
Software and equipment26,205 24,697 24,699 24,126 24,250 1,508 1,955 
Operating lease equipment9,816 9,833 10,078 9,448 8,774 (17)1,042 12 
Occupancy, net19,176 18,486 17,763 17,727 17,651 690 1,525 
Data processing9,726 9,409 7,927 7,767 8,010 317 1,716 21 
Advertising and marketing17,794 11,946 14,279 16,600 16,615 5,848 49 1,179 
Professional fees8,940 8,163 9,267 7,544 7,876 777 10 1,064 14 
Amortization of other acquisition-related intangible assets1,499 1,235 1,436 1,492 1,579 264 21 (80)(5)
FDIC insurance9,008 8,669 6,775 7,186 6,949 339 2,059 30 
OREO expense, net118 (207)369 229 294 325 NM(176)(60)
Other:
Lending expenses, net of deferred origination costs7,890 3,099 4,952 4,533 4,270 4,791 NM3,620 85 
Travel and entertainment5,401 4,590 5,681 4,252 3,897 811 18 1,504 39 
Miscellaneous20,127 22,468 24,279 19,470 21,177 (2,341)(10)(1,050)(5)
Total other33,418 30,157 34,912 28,255 29,344 3,261 11 4,074 14 
Total Non-Interest Expense$320,623 $299,169 $307,836 $296,469 $288,668 $21,454 %$31,955 11 %


Six Months Ended
Jun 30,Jun 30,$%
(Dollars in thousands)20232022ChangeChange
Salaries and employee benefits:
Salaries$216,025 $184,530 $31,495 17 %
Commissions and incentive compensation84,310 97,924 (13,614)(14)
Benefits61,369 57,227 4,142 
Total salaries and employee benefits361,704 339,681 22,023 
Software and equipment50,902 47,060 3,842 
Operating lease equipment19,649 18,482 1,167 
Occupancy, net37,662 35,475 2,187 
Data processing19,135 15,515 3,620 23 
Advertising and marketing29,740 28,539 1,201 
Professional fees17,103 16,277 826 
Amortization of other acquisition-related intangible assets2,734 3,188 (454)(14)
FDIC insurance17,677 14,678 2,999 20 
OREO expense, net(89)(738)649 (88)
Other:
Lending expenses, net of deferred origination costs10,989 11,091 (102)(1)
Travel and entertainment9,991 6,573 3,418 52 
Miscellaneous42,595 37,145 5,450 15 
Total other63,575 54,809 8,766 16 
Total Non-Interest Expense$619,792 $572,966 $46,826 %
NM - Not meaningful.
31

TABLE 17: SUPPLEMENTAL NON-GAAP FINANCIAL MEASURES/RATIOS

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

Management reviews yields on certain asset categories and the net interest margin of the Company and its banking subsidiaries on a fully taxable-equivalent basis. In this non-GAAP presentation, net interest income is adjusted to reflect tax-exempt interest income on an equivalent before-tax basis using tax rates effective as of the end of the period. This measure ensures comparability of net interest income arising from both taxable and tax-exempt sources. Net interest income on a fully taxable-equivalent basis is also used in the calculation of the Company’s efficiency ratio. The efficiency ratio, which is calculated by dividing non-interest expense by total taxable-equivalent net revenue (less securities gains or losses), measures how much it costs to produce one dollar of revenue. Securities gains or losses are excluded from this calculation to better match revenue from daily operations to operational expenses. Management considers the tangible common equity ratio and tangible book value per common share as useful measurements of the Company’s equity. The Company references the return on average tangible common equity as a measurement of profitability. Management considers pre-tax income, excluding provision for credit losses, as a useful measurement of the Company’s core net income.
Three Months EndedSix Months Ended
 Jun 30,Mar 31,Dec 31,Sep 30,Jun 30,Jun 30,Jun 30,
(Dollars and shares in thousands)2023202320222022202220232022
Reconciliation of Non-GAAP Net Interest Margin and Efficiency Ratio:
(A) Interest Income (GAAP)$697,176 $639,690 $580,745 $466,478 $371,968 $1,336,866 $700,220 
Taxable-equivalent adjustment:
 - Loans
1,882 1,872 1,594 1,030 568 3,754 995 
 - Liquidity Management Assets551 551 538 502 472 1,102 937 
 - Other Earning Assets1 5 
(B) Interest Income (non-GAAP)$699,610 $642,117 $582,878 $468,011 $373,009 $1,341,727 $702,155 
(C) Interest Expense (GAAP)249,639 181,695 123,929 65,030 34,164 431,334 63,122 
(D) Net Interest Income (GAAP) (A minus C)$447,537 $457,995 $456,816 $401,448 $337,804 $905,532 $637,098 
(E) Net Interest Income (non-GAAP) (B minus C)$449,971 $460,422 $458,949 $402,981 $338,845 $910,393 $639,033 
Net interest margin (GAAP)3.64 %3.81 %3.71 %3.34 %2.92 %3.72 %2.76 %
Net interest margin, fully taxable-equivalent (non-GAAP)3.66 3.83 3.73 3.35 2.93 3.74 2.77 
(F) Non-interest income$113,030 $107,769 $93,839 $101,482 $102,942 $220,799 $265,732 
(G) Gains (losses) on investment securities, net0 1,398 (6,745)(3,103)(7,797)1,398 (10,579)
(H) Non-interest expense320,623 299,169 307,836 296,469 288,668 619,792 572,966 
Efficiency ratio (H/(D+F-G))57.20 %53.01 %55.23 %58.59 %64.36 %55.10 %62.73 %
Efficiency ratio (non-GAAP) (H/(E+F-G))56.95 52.78 55.02 58.41 64.21 54.86 62.60 
32

Three Months EndedSix Months Ended
Jun 30,Mar 31,Dec 31,Sep 30,Jun 30,Jun 30,Jun 30,
(Dollars and shares in thousands)2023202320222022202220232022
Reconciliation of Non-GAAP Tangible Common Equity Ratio:
Total shareholders’ equity (GAAP)$5,041,912$5,015,506$4,796,838$4,637,980$4,727,623
Less: Non-convertible preferred stock (GAAP)(412,500)(412,500)(412,500)(412,500)(412,500)
Less: Intangible assets (GAAP)(682,327)(674,538)(675,710)(676,699)(679,827)
(I) Total tangible common shareholders’ equity (non-GAAP)$3,947,085$3,928,468$3,708,628$3,548,781$3,635,296
(J) Total assets (GAAP)$54,286,176$52,873,511$52,949,649$52,382,939$50,969,332
Less: Intangible assets (GAAP)(682,327)(674,538)(675,710)(676,699)(679,827)
(K) Total tangible assets (non-GAAP)$53,603,849$52,198,973$52,273,939$51,706,240$50,289,505
Common equity to assets ratio (GAAP) (L/J)8.5 %8.7 %8.3 %8.1 %8.5 %
Tangible common equity ratio (non-GAAP) (I/K)7.4 7.5 7.1 6.9 7.2 
Reconciliation of Non-GAAP Tangible Book Value per Common Share:
Total shareholders’ equity$5,041,912 $5,015,506 $4,796,838 $4,637,980 $4,727,623 
Less: Preferred stock(412,500)(412,500)(412,500)(412,500)(412,500)
(L) Total common equity$4,629,412 $4,603,006 $4,384,338 $4,225,480 $4,315,123 
(M) Actual common shares outstanding61,198 61,176 60,794 60,743 60,722 
Book value per common share (L/M)$75.65 $75.24 $72.12 $69.56 $71.06 
Tangible book value per common share (non-GAAP) (I/M)64.50 64.22 61.00 58.42 59.87 
Reconciliation of Non-GAAP Return on Average Tangible Common Equity:
(N) Net income applicable to common shares$147,759 $173,207 $137,826 $135,970 $87,522 $320,966 $207,922 
Add: Intangible asset amortization 1,499 1,235 1,436 1,492 1,579 2,734 3,188 
Less: Tax effect of intangible asset amortization(402)(321)(370)(425)(445)(722)(870)
After-tax intangible asset amortization $1,097 $914 $1,066 $1,067 $1,134 $2,012 $2,318 
(O) Tangible net income applicable to common shares (non-GAAP)$148,856 $174,121 $138,892 $137,037 $88,656 $322,978 $210,240 
Total average shareholders’ equity$5,044,718 $4,895,271 $4,710,856 $4,795,387 $4,526,110 $4,970,407 $4,513,356 
Less: Average preferred stock(412,500)(412,500)(412,500)(412,500)(412,500)(412,500)(412,500)
(P) Total average common shareholders’ equity$4,632,218 $4,482,771 $4,298,356 $4,382,887 $4,113,610 $4,557,907 $4,100,856 
Less: Average intangible assets(682,561)(675,247)(676,371)(678,953)(681,091)(678,924)(681,843)
(Q) Total average tangible common shareholders’ equity (non-GAAP)$3,949,657 $3,807,524 $3,621,985 $3,703,934 $3,432,519 $3,878,983 $3,419,013 
Return on average common equity, annualized (N/P)12.79 %15.67 %12.72 %12.31 %8.53 %14.20 %10.22 %
Return on average tangible common equity, annualized (non-GAAP) (O/Q)15.12 18.55 15.21 14.68 10.36 16.79 12.40 
Reconciliation of Non-GAAP Pre-Tax, Pre-Provision Income:
Income before taxes$211,430 $243,550 $195,173 $200,041 $131,661 $454,980 $305,341 
Add: Provision for credit losses28,514 23,045 47,646 6,420 20,417 51,559 24,523 
Pre-tax income, excluding provision for credit losses (non-GAAP)$239,944 $266,595 $242,819 $206,461 $152,078 $506,539 $329,864 
33

WINTRUST SUBSIDIARIES AND LOCATIONS

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

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

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

FORWARD-LOOKING STATEMENTS

This document contains forward-looking statements within the meaning of federal securities laws. Forward-looking information can be identified through the use of words such as “intend,” “plan,” “project,” “expect,” “anticipate,” “believe,” “estimate,” “contemplate,” “possible,” “will,” “may,” “should,” “would” and “could.” Forward-looking statements and information are not historical facts, are premised on many factors and assumptions, and represent only management’s expectations, estimates and projections regarding future events. Similarly, these statements are not guarantees of future performance and involve certain risks and uncertainties that are difficult to predict, and which may include, but are not limited to, those listed below and the Risk Factors discussed under Item 1A of the Company’s 2022 Annual Report on Form 10-K and in any of the Company’s subsequent SEC filings. The Company intends such forward-looking statements to be covered by the safe harbor provisions for forward-looking statements contained in the Private Securities Litigation Reform Act of 1995, and is including this statement for purposes of invoking these safe harbor provisions. Such forward-looking statements may be deemed to include, among other things, statements relating to the Company’s future financial performance, the performance of its loan portfolio, the expected amount of future credit reserves and charge-offs, delinquency trends, growth plans, regulatory developments, securities that the Company may offer from time to time, the Company’s business and growth strategies, including future acquisitions of banks, specialty finance or wealth management businesses, internal growth and plans to form additional de novo banks or branch offices, and management’s long-term performance goals, as well as statements relating to the anticipated effects on the Company’s financial condition and results of operations from expected developments or events. Actual results
34

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

economic conditions and events that affect the economy, housing prices, the job market and other factors that may adversely affect the Company’s liquidity and the performance of its loan portfolios, including an actual or threatened U.S. government debt default or rating downgrade, particularly in the markets in which it operates;
negative effects suffered by us or our customers resulting from changes in U.S. trade policies;
the extent of defaults and losses on the Company’s loan portfolio, which may require further increases in its allowance for credit losses;
estimates of fair value of certain of the Company’s assets and liabilities, which could change in value significantly from period to period;
the financial success and economic viability of the borrowers of our commercial loans;
commercial real estate market conditions in the Chicago metropolitan area and southern Wisconsin;
the extent of commercial and consumer delinquencies and declines in real estate values, which may require further increases in the Company’s allowance for credit losses;
inaccurate assumptions in our analytical and forecasting models used to manage our loan portfolio;
changes in the level and volatility of interest rates, the capital markets and other market indices that may affect, among other things, the Company’s liquidity and the value of its assets and liabilities;
the interest rate environment, including a prolonged period of low interest rates or rising interest rates, either broadly or for some types of instruments, which may affect the Company’s net interest income and net interest margin, and which could materially adversely affect the Company’s profitability;
competitive pressures in the financial services business which may affect the pricing of the Company’s loan and deposit products as well as its services (including wealth management services), which may result in loss of market share and reduced income from deposits, loans, advisory fees and income from other products;
failure to identify and complete favorable acquisitions in the future or unexpected difficulties or developments related to the integration of the Company’s recent or future acquisitions;
unexpected difficulties and losses related to FDIC-assisted acquisitions;
harm to the Company’s reputation;
any negative perception of the Company’s financial strength;
ability of the Company to raise additional capital on acceptable terms when needed;
disruption in capital markets, which may lower fair values for the Company’s investment portfolio;
ability of the Company to use technology to provide products and services that will satisfy customer demands and create efficiencies in operations and to manage risks associated therewith;
failure or breaches of our security systems or infrastructure, or those of third parties;
security breaches, including denial of service attacks, hacking, social engineering attacks, malware intrusion and similar events or data corruption attempts and identity theft;
adverse effects on our information technology systems resulting from failures, human error or cyberattacks (including ransomware);
adverse effects of failures by our vendors to provide agreed upon services in the manner and at the cost agreed, particularly our information technology vendors;
increased costs as a result of protecting our customers from the impact of stolen debit card information;
accuracy and completeness of information the Company receives about customers and counterparties to make credit decisions;
ability of the Company to attract and retain senior management experienced in the banking and financial services industries, and ability of the Company to effectively manage the planned transition of the chief executive officer role;
environmental liability risk associated with lending activities;
the impact of any claims or legal actions to which the Company is subject, including any effect on our reputation;
losses incurred in connection with repurchases and indemnification payments related to mortgages and increases in reserves associated therewith;
the loss of customers as a result of technological changes allowing consumers to complete their financial transactions without the use of a bank;
the soundness of other financial institutions and the impact of recent failures of financial institutions, including broader financial institution liquidity risk and concerns;
the expenses and delayed returns inherent in opening new branches and de novo banks;
liabilities, potential customer loss or reputational harm related to closings of existing branches;
examinations and challenges by tax authorities, and any unanticipated impact of the Tax Act;
changes in accounting standards, rules and interpretations, and the impact on the Company’s financial statements;
the ability of the Company to receive dividends from its subsidiaries;
the ability of the Company to successfully discontinue use of LIBOR and transition to an alternative benchmark rate for
35

current and future transactions;
a decrease in the Company’s capital ratios, including as a result of declines in the value of its loan portfolios, or otherwise;
legislative or regulatory changes, particularly changes in regulation of financial services companies and/or the products and services offered by financial services companies;
changes in laws, regulations, rules, standards and contractual obligations regarding data privacy and cybersecurity;
a lowering of our credit rating;
changes in U.S. monetary policy and changes to the Federal Reserve’s balance sheet, including changes in response to persistent inflation or otherwise;
regulatory restrictions upon our ability to market our products to consumers and limitations on our ability to profitably operate our mortgage business;
increased costs of compliance, heightened regulatory capital requirements and other risks associated with changes in regulation and the regulatory environment;
the impact of heightened capital requirements;
increases in the Company’s FDIC insurance premiums, or the collection of special assessments by the FDIC;
delinquencies or fraud with respect to the Company’s premium finance business;
credit downgrades among commercial and life insurance providers that could negatively affect the value of collateral securing the Company’s premium finance loans;
the Company’s ability to comply with covenants under its credit facility;
fluctuations in the stock market, which may have an adverse impact on the Company’s wealth management business and brokerage operation;
widespread outages of operational, communication, or other systems, whether internal or provided by third parties, natural or other disasters (including acts of terrorism, armed hostilities and pandemics), and the effects of climate change could have an adverse effect on the Company’s financial condition and results of operations, lead to material disruption of the Company’s operations or the ability or willingness of clients to access the Company’s products and services; and
the severity, magnitude and duration of the COVID-19 pandemic, including the continued emergence of variant strains, and the direct and indirect impact of such pandemic, as well as responses to the pandemic by the government, businesses and consumers, on the economy, our financial results, operations and personnel, commercial activity and demand across our business and our customers’ businesses.

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

CONFERENCE CALL, WEBCAST AND REPLAY

The Company will hold a conference call on Thursday, July 20, 2023 at 9:00 a.m. (CDT) regarding second quarter and year-to-date 2023 earnings results. Individuals interested in participating in the call by addressing questions to management should register for the call to receive the dial-in numbers and unique PIN at the link included within the Company’s press release dated July 6, 2023 available at the Investor Relations, Investor News and Events, Press Releases link on its website at https://www.wintrust.com. A separate simultaneous audio-only webcast link is included within the press release referenced above. Registration for and a replay of the audio-only webcast with an accompanying slide presentation will be available at https://www.wintrust.com, Investor Relations, Investor News and Events, Presentations & Conference Calls. The text of the second quarter and year-to-date 2023 earnings press release will also be available on the home page of the Company’s website at https://www.wintrust.com and at the Investor Relations, Investor News and Events, Press Releases link on its website.

36
Earnings Release Presentation Q2 2023 Wintrust Financial Corporation


 
22 This document contains forward-looking statements within the meaning of federal securities laws. Forward-looking information can be identified through the use of words such as “intend,” “plan,” “project,” “expect,” “anticipate,” “believe,” “estimate,” “contemplate,” “possible,” “will,” “may,” “should,” “would” and “could.” Forward-looking statements and information are not historical facts, are premised on many factors and assumptions, and represent only management’s expectations, estimates and projections regarding future events. Similarly, these statements are not guarantees of future performance and involve certain risks and uncertainties that are difficult to predict, and which may include, but are not limited to, those listed below and the Risk Factors discussed under Item 1A of the Company’s 2022 Annual Report on Form 10-K and in any of the Company’s subsequent SEC filings. The Company intends such forward-looking statements to be covered by the safe harbor provisions for forward-looking statements contained in the Private Securities Litigation Reform Act of 1995, and is including this statement for purposes of invoking these safe harbor provisions. Such forward-looking statements may be deemed to include, among other things, statements relating to the Company’s future financial performance, the performance of its loan portfolio, the expected amount of future credit reserves and charge-offs, delinquency trends, growth plans, regulatory developments, securities that the Company may offer from time to time,the Company’s business and growth strategies, including future acquisitions of banks, specialty finance or wealth management businesses, internal growth and plans to form additional de novo banks or branch offices, and management’s long-term performance goals, as well as statements relating to the anticipated effects on the Company's financial condition and results of operations from expected developments or events. Actual results could differ materially from those addressed in the forward- looking statements as a result of numerous factors, including the following: • economic conditions and events that affect the economy, housing prices, the job market and other factors that may adversely affect the Company’s liquidity and the performance of its loan portfolios, including an actual or threatened U.S. government debt default or rating downgrade, particularly in the markets in which it operates; • negative effects suffered by us or our customers resulting from changes in U.S. trade policies; • the extent of defaults and losses on the Company’s loan portfolio, which may require further increases in its allowance for credit losses; • estimates of fair value of certain of the Company’s assets and liabilities, which could change in value significantly from period to period; • the financial success and economic viability of the borrowers of our commercial loans; • commercial real estate market conditions in the Chicago metropolitan area and southern Wisconsin; • the extent of commercial and consumer delinquencies and declines in real estate values, which may require further increases in the Company’s allowance for credit losses; • inaccurate assumptions in our analytical and forecasting models used to manage our loan portfolio; • changes in the level and volatility of interest rates, the capital markets and other market indices that may affect, among other things, the Company’s liquidity and the value of its assets and liabilities; • the interest rate environment, including a prolonged period of low interest rates or rising interest rates, either broadly or for some types of instruments, which may affect the Company’s net interest income and net interest margin, and which could materially adversely affect the Company’s profitability; • competitive pressures in the financial services business which may affect the pricing of the Company’s loan and deposit products as well as its services (including wealth management services), which may result in loss of market share and reduced income from deposits, loans, advisory fees and income from other products; • failure to identify and complete favorable acquisitions in the future or unexpected difficulties or developments related to the integration of the Company’s recent or future acquisitions; • unexpected difficulties and losses related to FDIC-assisted acquisitions; • harm to the Company’s reputation; • any negative perception of the Company’s financial strength; • ability of the Company to raise additional capital on acceptable terms when needed; • disruption in capital markets, which may lower fair values for the Company’s investment portfolio; • ability of the Company to use technology to provide products and services that will satisfy customer demands and create efficiencies in operations and to manage risks associated therewith; • failure or breaches of our security systems or infrastructure, or those of third parties; • security breaches, including denial of service attacks, hacking, social engineering attacks, malware intrusion and similar events or data corruption attempts and identity theft; • adverse effects on our information technology systems resulting from failures, human error or cyberattacks (including ransomware); PENDING Forward Looking Statements


 
33 • adverse effects of failures by our vendors to provide agreed upon services in the manner and at the cost agreed, particularly our information technology vendors; • increased costs as a result of protecting our customers from the impact of stolen debit card information; • accuracy and completeness of information the Company receives about customers and counterparties to make credit decisions; • ability of the Company to attract and retain senior management experienced in the banking and financial services industries, and ability of the Company to effectively manage the planned transition of the chief executive officer role; • environmental liability risk associated with lending activities; • the impact of any claims or legal actions to which the Company is subject, including any effect on our reputation; • losses incurred in connection with repurchases and indemnification payments related to mortgages and increases in reserves associated therewith; • the loss of customers as a result of technological changes allowing consumers to complete their financial transactions without the use of a bank; • the soundness of other financial institutions and the impact of recent failures of financial institutions, including broader financial institution liquidity risk and concerns; • the expenses and delayed returns inherent in opening new branches and de novo banks; • liabilities, potential customer loss or reputational harm related to closings of existing branches; • examinations and challenges by tax authorities, and any unanticipated impact of the Tax Act; • changes in accounting standards, rules and interpretations, and the impact on the Company’s financial statements; • the ability of the Company to receive dividends from its subsidiaries; • the ability of the Company to successfully discontinue use of LIBOR and transition to an alternative benchmark rate for current and future transactions; • a decrease in the Company’s capital ratios, including as a result of declines in the value of its loan portfolios, or otherwise; • legislative or regulatory changes, particularly changes in regulation of financial services companies and/or the products and services offered by financial services companies; • changes in laws, regulations, rules, standards and contractual obligations regarding data privacy and cybersecurity; • a lowering of our credit rating; • changes in U.S. monetary policy and changes to the Federal Reserve’s balance sheet, including changes in response to persistent inflation or otherwise; • regulatory restrictions upon our ability to market our products to consumers and limitations on our ability to profitably operate our mortgage business; • increased costs of compliance, heightened regulatory capital requirements and other risks associated with changes in regulation and the regulatory environment; • the impact of heightened capital requirements; • increases in the Company’s FDIC insurance premiums, or the collection of special assessments by the FDIC; • delinquencies or fraud with respect to the Company’s premium finance business; • credit downgrades among commercial and life insurance providers that could negatively affect the value of collateral securing the Company’s premium finance loans; • the Company’s ability to comply with covenants under its credit facility; • fluctuations in the stock market, which may have an adverse impact on the Company’s wealth management business and brokerage operation; • widespread outages of operational, communication, or other systems, whether internal or provided by third parties, natural or other disasters (including acts of terrorism, armed hostilities and pandemics), and the effects of climate change could have an adverse effect on the Company’s financial condition and results of operations, lead to material disruption of the Company’s operations or the ability or willingness of clients to access the Company’s products and services; and • the severity, magnitude and duration of the COVID-19 pandemic, including the continued emergence of variant strains, and the direct and indirect impact of such pandemic, as well as responses to the pandemic by the government, businesses and consumers, on the economy, our financial results, operations and personnel, commercial activity and demand across our business and our customers’ businesses. Therefore, there can be no assurances that future actual results will correspond to these forward-looking statements. The reader is cautioned not to place undue reliance on any forward- looking statement made by the Company. Any such statement speaks only as of the date the statement was made or as of such date that may be referenced within the statement. The Company undertakes no obligation to update any forward-looking statement to reflect the impact of circumstances or events after the date of the press release and this presentation. 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 and presentations. PENDING Forward Looking Statements


 
44 • Second most profitable quarter in the Company's history with net income of $154.8 million • Net interest margin remained relatively stable throughout the second quarter of 2023 Pre-Tax, Pre-Provision1 Diversified Balance Sheet Future Outlook • Wintrust continues to monitor the interest rate environment to reduce the asset sensitivity of its balance sheet given the recent increase in rates. • Pressure on net interest margin is expected in upcoming quarter. • Growing low cost deposits in our market area remains a significant focus of the Company, which we believe will be the key to mitigating net interest margin compression. Strong Balance Sheet Total Loans +$2.2B / 9.7% Mid to High Single Digit Growth Average Loan to Deposit Ratio 93.7% 85% - 90% Total Deposits +$2.9B / 12.6% High Single Digit Growth Income Net Income +$85.5MM 10% - 15% Growth NIM Net Interest Margin +17 bps 3.60% - 3.70% NII Non-Interest Income +$36.6MM PENDING NIE Non-Interest Expense +$94.3MM 1.50% - 1.60% Net Overhead Ratio Credit & Capital Net Charge-Off Ratio +2 bps Diligently Monitoring to Maintain Pristine Credit Quality Total Risk-Based Capital Ratio -39 bps May Consider Capital Increase Pending Acquisition Pipeline Total DepositsTotal Assets Total Loans Net Income $54.3 billion +$1.4 billion $41.0 billion +$1.5 billion $44.0 billion +$1.3 billion $154.8 million -$25.4 million Exceptional Credit Quality Awards/Non- Recurring Items • Low and stable NPLs at $108.7 million or 0.26% of total loans • Increased allowance coverage as reserves on core loans are 1.50% of total core loans • Continued low levels of net-charge offs at 17 basis points of average total loans on an annualized basis • Ranked Top Workplace in Chicago 2021 • Swap Sale expected in 2022 Update Format second box Efficiency RatioReturn on Assets ROE / ROTCE 1.18% -22 bps 12.79% -288 bps (GAAP) 57.20% +419 bps $239.9 million -$26.7 million • Total deposits grew $1.3 billion, or 12.4% annualized, primarily due to growth in our MaxSafe® products • Loan growth of $1.5 billion driven primarily by commercial premium finance receivables 1 Pre-tax income, excluding provision for credit losses (non-GAAP) – See non-GAAP reconciliation in the Appendix Diluted EPS $2.38 -$0.42 Current EPS Prior EPS $ 2.38 2.80 $ (0.42) PPNI Prior PPNI $ 239.9 266.6 $-26.65 -26700000 239,944 266,595 3 Bps: Basis Points 4 See Non-GAAP reconciliation in the Appendix 5 NPLs: Non-Performing Loans Stable Margin Supports Earnings Net Overhead Ratio 1.58% +9 bps (non-GAAP) 56.95% +417 bps Efficiency GAAP Prior Q 57.20% 58.59% $ (139.00) Efficiency Non GAAP Prior Q PENDING Efficiency Ratio (GAAP) Q1-23 Efficiency Ratio (GAAP) Q4-22 Efficiency Ratio (Non- GAAP) Q1-23 Efficiency Ratio (Non- GAAP) Q4-22 57.20 % 53.01 % 56.95 % 52.78 % % Change File does not have calc for GAAP numbers 417 Check 418.999999999999 417 Link was removed ----> will need to relink (GAAP) 12.79% -288 bps (non-GAAP) 15.12% -343 bps Q2 2023 Highlights (comparative to Q1 2023) PENDING


 
55 Diluted EPS Quarterly Trend Lower Quarterly PTPP due to Net Interest Margin CompressionStrong Quarterly Net Income Earnings Summary Differentiated, highly diversified and sustainable business model $94.5 $143.0 $144.8 $180.2 $154.8 0.77% 1.12% 1.10% 1.40% 1.18% Net Income ROA Q2 2022 Q3 2022 Q4 2022 Q1 2023 Q2 2023 $1.49 $2.21 $2.23 $2.80 $2.38 Diluted EPS Q2 2022 Q3 2022 Q4 2022 Q1 2023 Q2 2023 $152.1 $206.5 $242.8 $266.6 $239.9 Pre-Tax Income, excluding Provision for Credit Losses (non-GAAP) Q2 2022 Q3 2022 Q4 2022 Q1 2023 Q2 2023 2 ### ($ in Millions) ($ in Millions) 1 See non-GAAP reconciliation in Appendix • Net interest income of $447.5 million supported by loan growth and net interest margin stabilization in Q2 2023. • The Company reported record year-to-date net income of $334.9 million through the first six months of 2023 Q2 2023 Highlights Earnings Summary Differentiated, highly diversified and sustainable business model


 
66 31% 26% 16% 20% 6% 1% Commercial Commercial Real Estate PFR - Commercial Insurance PFR - Life Insurance Residential Real Estate All Other Loans 32% 0% 26% 1% 6% 16% 19% Commercial excl. PPP Commercial PPP Commercial Real Estate Home Equity Residential Real Estate Premium Finance Receivables - Commercial Premium Finance Receivables - Life Insurance • Before the impact of scheduled payments and prepayments, gross commercial and commercial real estate loan pipelines were estimated to be approximately $1.1 billion to $1.3 billion at June 30, 2023, as compared to $1.5 billion to $1.7 billion at March 31, 2023. When adjusted for the probability of closing, the pipelines were estimated to be approximately $730 million to $807 million at June 30, 2023, as compared to $990 million to $1.1 billion at March 31, 2023. • Total loans, excluding Paycheck Protection Program ("PPP") loans, increased by $2.0 billion, as compared to March 31, 2023, • Total period end loans as of June 30, 2023 were $1.1 billion higher than average total loans in the second quarter of 2023.$39,565 $23 $370 $138 $1,024 $(87) $(10) $41,023 3/31/2023 Commercial Commercial Real Estate Residential Real Estate PFR - Commercial Insurance PFR - Life Insurance All Other Loans 6/30/2023 Measured Loan Growth Coupled with Expanded Loan Yield QoQ Growth Lead by Commercial & Acquired Loan Portfolio $37.1 $39.6 $41.0 3.59% 5.82% 6.23% Total Loans Average Total Loan Yield 6/30/2022 3/31/2023 6/30/2023 Year-over-Year Change $3.9B or 11% in Total Loans Balanced Loan Mix (as of 6/30/2023) ($ in Billions) ($ in Millions) Key Observations Benefit from Current and Future Anticipated Rate Increases 51.0% 28.0% 6.0% 11.0% 5.0% Current Loan Balances Projected to Reprice or Mature Based on Modeled Contractual Cash Flows ≤ 3 Months 4-12 months 1-2 Years 2-5 Years > 5 Years $41.1 DONE Commercial excl. PPP $11.7 PPP $0.3 Commercial Real Estate $9.2 Premium Finance Receivables - Commercial Insurance $4.9 Premium Finance Receivables - Life Insurance $7.2 All Other Loans $3.2 Presentation draft doughnut chart left ($ in Billions) $39,565 $39,915 3/31/2023 Commercial PPP All Other Commercial Loans Commercial Real Estate Premium Finance Receivables - Commercial Insurance Premium Finance Receivables - Life Insurance All Other Loans 6/30/2023 Draft waterfall below 1 1 1 RELINK TEXT BOX TOT LOANS Loan Growth Across Majority of Loan Portfolios Pending from Mark B. Pending $4.4B or 11% in Total Loans, $5.0B or 15% in Total Loans excl. PPP Loan Portfolio Diversified loan portfolio Loan Growth Primarily Driven by Specialty Finance and CRE ($ in Millions) Diversified Loan Mix (as of 6/30/2023) Strong Loan Growth Coupled with Expanded Loan Yield ($ in Billions) PENDING Q2 Q1 Total Loans 41,023,408 39,565,471 YoY change 4 %


 
77 $42,718 $(778) $1,656 $(392) $835 $44,039 3/31/2023 Non-Interest-Bearing MaxSafe® Wealth Management All Other Interest- Bearing 6/30/2023 Deposit Franchise Remained Solid Q1 '23 Commentary $42.6 $42.7 $44.0 0.28% 1.97% 2.71% Total Deposits Rate Paid on Average Total Interest-Bearing Deposits 6/30/2022 3/31/2023 6/30/2023 Year-over-Year Change $1.4B or 3% Non-Interest-Bearing $10.6 NOW and Interest- Bearing DDA $5.8 Wealth Management Deposits $1.4 Money Market $14.5 Savings $5.3 Time Certificates of Deposit $6.4 ($ in Billions) ($ in Billions) Draft graph to left $44.0 PENDING UPDATES 1 1Includes CDEC deposit balances 2 Includes: Cash on hand, Federal Reserve Discount Window availability and FHLB unused borrowing capacity Deposit Portfolio Enviable core deposit franchise in Chicago and Milwaukee market areas Continued Deposit Mix Shift Into Insured Deposits and Interest-Bearing ($ in Billions) Deposit Growth Supported by Strong Franchise ($ in Billions) • Total Loan Growth expected... • Total Deposit Growth anticipated... • Average Loans to Deposit Target Ratio... • Net Income... • Net Interest Margin • Non-Interest Income... • Net Overhead Ratio... • Net Charge-Off Ratio... • Total RBC Ratio... Outlook Commentary PENDING • Deposit base and liquidity remains strong despite a volatile market. We remain highly competitive in the Chicagoland and Milwaukee/ Wisconsin market and continue to grow our customer/retail base • No direct crypto exposure or material deposit concentrations • FDIC insured and fully collateralized deposits comprise approximately 74% of total deposits • Our immediate liquidity sources2 cover 127% of uninsured/ uncollateralized deposits • Wintrust’s unique MaxSafe® product offers clients the opportunity to receive $3.75 million in FDIC insurance per person • Deposit mix shift continued in Q2 2023 primarily driven by higher MaxSafe® and other interest-bearing partially offset by lower non- interest-bearing and wealth management


 
88 26% 24% 13% 13% 4% 3% 32% 33% 12% 12% 13% 15% Time Certificates of Deposit Savings Money Market Wealth Management Deposits NOW and Interest-Bearing Demand Deposits Non-Interest-Bearing Q1 2023 Q2 2023 Total Interest-Bearing Deposit Costs 1 "Prior Fed Cycle" defined as Q3 2015 to Q2 2019 and "Current Fed Cycle" begins in Q3 2019 to present Deposit Beta Accelerated in Q1 2023 Anticipated to Surpass Previous Cycle Betas • Total deposits increased by $1.3 billion from the prior quarter end. • Non-interest bearing deposits comprise 24% of total deposits as of June 30, 2023. • Rate paid on average interest-bearing deposits increased 74 basis points from the prior quarter. • The loans to deposits ratio ended the current quarter at 93.2% as compared to 92.6% at prior quarter end. $42,718 $(631) $238 $(392) $971 $129 $44,039 3/31/2023 Non-Interest-B earing NOW and Interest-B earing DDA Wealth Management Deposits Money Market Savings Time Certific ates of Deposit 6/30/2023 Increased Funding Costs Considerably Outpaced by Higher Loan Yields Q1 '23 Commentary Focused on low-cost deposit mix to drive margin expansion $42.6 $42.7 $44.0 0.28% 1.97% 2.71% Total Deposits Rate Paid on Average Total Interest-Bearing Deposits 6/30/2022 3/31/2023 6/30/2023 Year-over-Year Change $1.4B or 3% Non-Interest-Bearing $10.6 NOW and Interest- Bearing DDA $5.8 Wealth Management Deposits $1.4 Money Market $14.5 Savings $5.3 Time Certificates of Deposit $6.4 ($ in Billions) ($ in Billions) 53% 44% Q3 2019 to Q4 2021 (–225 bps) Q3 2015 to Q2 2019 (+225 bps) Deposit Mix Shift Into Interest-bearing and Insured Deposits Draft graph to left $42,718 $150 $(75) $100 $(50) $150 $43,093 3/31/2023 Non-Interest-B earing NOW and Interest-B earing DDA Wealth Management Deposits Money Market Savings Time Certific ates of Deposit 6/30/2023 Draft waterfall below 1 0.25% 3.25% 0.64% 2.71% 2.19% 2.85% Fed Target Total Interest-Bearing Deposit Costs Total Deposit Costs 12/31/21 09/30/22 Total Interest-Bearing Beta 5% Total D posit Beta 4% Fed Target up 300 bps Historical Interest-Bearing Beta1 44% 1Historical Deposit Beta reflects previous rising rate Fed cycle Q3 2015 to Q2 2019 Fed Funds Upper Target up 500 bps 0.25% 5.25% 12/31/21 6/30/2023 Total Interest-Bearing Deposit Beta 49% 0.24% 2.71% 12/31/21 6/30/2023 Total Deposit Beta 38% 0.16% 2.04% 12/31/21 6/30/2023 Fed Target Total Deposit Costs $44.0 • Total cycle-to-date Interest-Bearing Deposit Beta stands at 36% as of Q1 2023 but with market pressures current cycle beta likely to outpace Historical Beta and may approach 50% • Experienced a shift from Non-Interest-Bearing deposits to Interest-Bearing products • Benefited from MaxSafe® and reciprocal products that provide our customers additional FDIC protection ◦ These deposits increased $1.3 billion from 12/31/22 primarily driven by a $1.1 billion increase in MaxSafe® • No material deposit concentrations ($ in Billions) $42.7 Deposit Portfolio Reversion of deposit mix to pre-pandemic levels while deposit beta increases with market pressures • Total cycle-to-date Interest-Bearing Deposit Beta stands at 47% as of Q2 2023, which is in-line with our guidance and we believe deposit beta may now approach 55% • Continued to benefit from MaxSafe® product that provides our customers additional FDIC protection ◦ MaxSafe® deposit balances increased $1.7 billion from 3/31/23 • No material deposit concentrations Q2 2023 Highlights Deposit Beta Approaching Our Guidance Range Deposit Mix Shift Into Interest-Bearing ($ in Billions) $44.0 PENDING • Total cycle-to-date interest-bearing deposit beta ended at 49% as of Q2 2023, which is in-line with our guidance and we believe deposit beta may now approach 55% • Continued to benefit from MaxSafe® product that provides our customers additional FDIC protection ◦ MaxSafe® deposit balances increased $1.7 billion from 3/31/23 • No material deposit concentrations


 
99 Held-to-Maturity Yield (Q2 '23): 2.38% Duration: 7.7 Years $3,591 $3,382 Total Non-Deposit Borrowings 3/31/2023 6/30/2023 $4,019 $(527) $3,492 AFS Amortized Cost Pre-Tax Unrealized Losses AFS Fair Value $3,564 $(676) $2,888 HTM Amortized Cost Pre-Tax Unrealized Losses HTM Fair Value $3.5 $3.6 $0.1 Available-for-Sale Held-to-Maturity Other $3.5 $3.7 $— $0.1 Available-for-Sale Held-to-Maturity Trade Date Securities Receivable Other Strategically Balanced Investment Portfolio1 (as of 6/30/2023) Investment Portfolio Snapshot (as of 6/30/2023) ($ in Billions) $7.2 1 Includes securities held as a trade date securities receivable as of 3/31/23. In April 2023, the Company trade date securities receivables will be converted to cash. Held-to-Maturity Total Loans Total Deposits Total Loans + HTM Securities as a % to Total Deposits Q1 2022 Q4 2022 Q1 2023 $— $25.0 $50.0 $75.0 $100.0 Held-to-Maturity Yield (Q2 '23): 2.38% Duration: 7.7 Years Available for Sale Yield (Q1 '23): 3.34% Duration: 6.5 Years Total Investment Portfolio Yield (Q2 '23): 2.86% Duration: 7.0 Years As of (Dollars in Millions) 3/31/2023 Liquidity Sources : Cash on Hand $ 2,009 FHLB Capacity 4,788 Discount Window 361 Total Alternative Liquidity Sources $ 7,158 Strategically Balanced Investment Portfolio (as of 6/30/2023) Q1 '23 Commentary $3,604 $3,591 Total Non-Deposit Borrowings 3/31/2023 6/30/2023 • FHLB advances remained unchanged quarter over quarter • Registered for the Bank Term Funding Program (BTFP) but did not borrow and have no intent to do so • Other than for periodic testing, Wintrust has never borrowed from the Federal Discount Window • $940 million trade date securities receivable as of 3/31/2023 was converted to cash on 4/13/2023 to bolster cash position • Investment Portfolio size has remained relatively unchanged from 12/31/2022 and is only 13% of Total Assets ($ in Billions) 1 PENDING DATA $7.2 Wintrust Did Not Increase Reliance on Non-Deposit Borrowings in Q1' 23 ($ in Millions) ($ in Millions) 1 Includes: Federal Home Loan Bank advances, Other borrowings, Subordinated notes and Junior subordinated debentures Liquidity Prudently managing investment portfolio, while maintaining adequate liquidity Strategically Balanced Investment Portfolio (as of 6/30/2023)Investment Portfolio Snapshot (as of 6/30/2023) ($ in Millions) Reduced Non-Deposit Borrowings in Q2 '23 • FHLB advances decreased quarter over quarter • Registered for the Bank Term Funding Program but have not utilized and have no intent to do so • Other than for periodic testing, Wintrust has never borrowed from the Federal Reserve Discount Window • Investment Portfolio size has remained relatively unchanged from 3/31/2023 and at 13% of Total Assets Q2 2023 Highlights Available for Sale Yield (Q2 '23): 3.34% Duration: 6.5 Years Total Investment Portfolio Yield (Q2 '23): 2.86% Duration: 7.0 Years • FHLB advances decreased quarter over quarter • Registered for the Bank Term Funding Program but have not utilized and have no intent to do so • Other than for periodic testing, Wintrust has never borrowed from the Federal Reserve Discount Window • Investment portfolio size has remained relatively unchanged from 3/31/2023 at 13% of total assets


 
1010 $59.87 $64.22 $64.50 7.2% 7.5% 7.4% Tangible Book Value Per Share (non-GAAP) Tangible Common Equity Ratio (non-GAAP) 6/30/2022 3/31/2023 6/30/2023 9.2% 0.3% (0.3)% 9.2% 3/31/2023 Retained Earnings and other equity changes Change in RWA 6/30/2023 7.0% 8.5% 10.5% 4.50% 6.00% 8.00% 2.50% 2.50% 2.50% 9.3% 10.2% 12.1% Minimum Requirement Capital Conservation Buffer WTFC 12.1% 0.4% (0.3)% 11.9% 3/31/2023 Retained Earnings and other equity changes Change in RWA 6/30/2023 TBV Growth along with TCE Improvement Record Earnings Drove Capital Expansion Estimated Excess Capital Above Conservation Buffer ($ in Millions) Common equity Tier 1 capital1 Tier 1 capital ratio1 Total capital ratio1 $1,058 $782 $736 1 Ratios for Q2 2023 are estimated 9.0% 9.2% 9.2% 9.9% 10.1% 10.1% 11.9% 12.1% 11.9% 8.8% 9.1% 9.3% CET1 Ratio Tier 1 Capital Ratio Total Capital Ratio Tier 1 Leverage Ratio 6/30/2022 3/31/2023 6/30/2023 Quarterly Earnings Supported CET1 Improvement 7.2% 7.5% 7.4%7.1% 7.9% Tangible Common Equity Ratio (non-GAAP) Tangible Common Equity Ratio excl. AOCI (non-GAAP) 6/30/2022 3/31/2023 6/30/2023 Capital Ratios Adjusted for AOCI not Included in Capital Ratios & HTM Unrealized Losses (net of tax) Linked chart below 4 CET1 Ratio $0.13 $0.16 $59.64 $64.50 $71.06 $75.65 Book Value Per Common Share Tangible Book Value Per Common Share (non-GAAP) 12/31/2018 12/31/2019 12/31/2020 12/31/2021 6/30/2023 1 7.9% 7.1% 8.9% 8.0% 10.9% 10.0% 6.7% 6.3% Adjusted CET1 Ratio Adjusted Tier 1 Capital Ratio Adjusted Total Capital Ratio Adjusted Tier 1 Leverage Ratio 6/30/2022 3/31/2023 6/30/2023 1 8.6% 9.1% 9.3% 7.0% 7.0% 7.0% CET1 Ratio Minimum Requirement + Capital Conservation Buffer 03/31/22 12/31/22 03/31/23 Q1 '23 Commentary • The Company's current capital levels are well in excess of regulatory thresholds and it is expected that the Company would remain well capitalized in the event either: • Regulatory changes require banks to report unrealized AFS and HTM losses as a reduction to regulatory capital, or • If the Company were to liquidate our entire investment portfolio • Strong profits resulted in improved capital levels PENDING Do not move superscript Capital Current capital levels are well in excess of regulatory thresholds with the Company recording strong earnings CET1 Flat Quarter over QuarterCapital Levels Remained Stable Supporting Strong Growth ($ in Millions) Steady TBV Growth ($ in Millions) • The Company's current capital levels are well in excess of regulatory thresholds and it is expected that the Company would remain well capitalized in the event either: • Regulatory changes require banks to report unrealized AFS and HTM losses as a reduction to regulatory capital; or • The Company were to liquidate its entire investment portfolio Q2 2023 Highlights 1


 
1111 30% 26% 13% 13% 5% 4% 30% 32% 11% 12% 11% 13% Time Certificates of Deposit Savings Money Market Wealth Management Deposits NOW and Interest-Bearing Demand Deposits Non-Interest-Bearing Q4 2022 Q2 2023 1Historical Deposit Beta reflects previous rising rate Fed cycle Q3 2015 to Q2 2019 $42.7$42.9 Net Interest Margin/Income Net interest margin negatively impacted by hedging activity which is expected to benefit the Company if interest rates fall materially • Total cycle-to-date Interest-Bearing Deposit Beta stands at 36% as of Q1 2023 but with market pressures current cycle beta likely to outpace Historical Beta and may approach 50% • Experienced a shift from Non-Interest-Bearing deposits to Interest-Bearing products • Benefited from MaxSafe® and reciprocal products that provide our customers additional FDIC protection ◦ These deposits increased $1.3 billion from 12/31/22 primarily driven by a $1.1 billion increase in MaxSafe® • No material deposit concentrations Q1 2023 Highlights Q2 2023 NIM Down But Remained Relatively Stable Throughout the Quarter Deposit Mix Shift Into Interest-bearing and Insured Deposits ($ in Billions) 3.83% 0.42% (0.08)% (0.66)% 0.15% 3.66% NIM (non-GAAP) Q1 2023 Earning Asset Yield excl. Hedge Impact Hedge Impact Interest-Bearing Liability Rate Net Free Funds NIM (non-GAAP) Q2 2023 Q2 2023 Net Interest Income: $448.0MM Sequential Quarter Growth: ($10.0MM) or -2% Linked Quarter Growth: $110.2MM or 33% Repositioning the Balance Sheet to Mitigate Interest Rate Risk 9.0% 2.9% 5.3% 1.8% Static Ramp 6/30/2022 6/30/2023 1 2 Percentage Change in Net Interest Income Over a One-Year Time Horizon Rising Rates Scenario + 100 Basis Points (12.6)% (2.9)% (6.9)% (0.9)% Static Ramp 6/30/2022 6/30/2023 1 2 Percentage Change in Net Interest Income Over a One-Year Time Horizon Falling Rates Scenario - 100 Basis Points 1 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 2 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 Q1 '23 NII $458.0MM Q2 '23 NII $447.5MM PENDING


 
1212 $102.9 $101.5 $93.8 $107.8 $113.0 $31.4 $33.1 $30.7 $29.9 $33.9 $15.0 $12.6 $12.4 $13.0 $12.2 $15.9 $14.3 $13.1 $12.9 $13.6 $7.3 $14.3 $20.2 $33.7 $23.3 $33.3 $27.2 $17.4 $18.3 $30.0 Wealth Management Operating Lease Income, net Service Charges on Deposits Other Mortgage Banking Q2 2022 Q3 2022 Q4 2022 Q1 2023 Q2 2023 $821.0 $660.7 $422.4 $372.3 $578.0 $595.6 $448.8 $287.0 $256.1 $406.9 $225.4 $211.9 $135.4 $116.2 $171.2 Retail Originations Veterans First Originations Q2 2022 Q3 2022 Q4 2022 Q1 2023 Q2 2023 Mortgage Originations Rose Due to Seasonality Decline in Loans Serviced Related to MSR Sale in Q2 2023 Wealth Management Acquisition Drove Increased RevenueFee Businesses Stable Amidst Rising Rate Environment Declining Mortgage Originations for Sale due to Rising Mortgage Rates Fee Businesses Stable Amidst Rising Rate Environment 1 Other - includes Interest Rate Swap Fees, BOLI, Administrative Services, FX Remeasurement Gains/(Losses), Early Pay-Offs of Capital Leases, Gains/(losses) on investment securities, net, Fees from covered call options, Trading gains/(losses), net and Miscellaneous 1 $31.4 $33.1 $30.7 $29.9 $33.9 $27.1 $28.5 $26.5 $25.4 $29.5 $4.3 $4.6 $4.2 $4.5 $4.4 $32.9 $32.8 $34.4 $35.2 $44.5 Trust and Asset Management Revenue Brokerage Revenue Assets Under Administration ($ in Billions) Q2 2022 Q3 2022 Q4 2022 Q1 2023 Q2 2023 ($ in Millions) ($ in Millions) ($ in Millions) Wealth Management Business Remains Healthy Despite Market Volatility Hedging Efforts Helped Reduce MSR Volatility % of MSRs to Loans Serviced for Others Q2 2022 Q3 2022 Q4 2022 Q1 2023 Q2 2023 1.56% 1.65% 1.64% 1.60% 1.71% $212.7 $229.7 $230.2 $225.8 $200.7 $13,644 $13,926 $14,053 $14,080 $11,752 MSRs, at fair value Loans Serviced for Others Q2 2022 Q3 2022 Q4 2022 Q1 2023 Q2 2023 ($ in Millions) ($ in Millions) PENDING Non-Interest Income Diversified fee businesses support non-interest income levels despite challenging mortgage environment


 
1313 Efficiency Ratio Impacted by Competitive Deposit Pricing and Seasonal Advertising Expenses $167.3 $176.1 $180.3 $176.8 $184.9 $92.4 $97.4 $100.2 $108.4 $107.7 $46.1 $50.4 $49.5 $39.8 $44.5 $28.8 $28.3 $30.6 $28.6 $32.7 Salaries Commissions and Incentive Compensation Employee Benefits Q2 2022 Q3 2022 Q4 2022 Q1 2023 Q2 2023 64.21% 58.41% 55.02% 52.78% 56.95% Efficiency Ratio (non-GAAP) Q2 2022 Q3 2022 Q4 2022 Q1 2023 Q2 2023 Lower Incentive Expense Partially Offset by Annual Merit Increase Items Impacting Quarterly Comparability • The company recorded $838,000 in Occupancy expense related to the anticipated sale of a branch facility • Recorded $846,000 in Software and Equipment expense related to the impairment of an operating lease asset 1 Other NIE - includes Professional Fees, Data Processing, amortization of other intangible assets, FDIC insurance, OREO expense, net, Commissions (3rd Party Brokers), Postage and Miscellaneous $288.7 $8.1 Q2 2022 Non-Interest Expense Salaries and Employee Benefits All Other Expenses Q3 2022 Non-Interest Expense 1 1 Net Overhead Ratio - 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. 2 See Non-GAAP reconciliation in the Appendix Salaries and employee benefits expense decreased by $1.9 million in the third quarter of 2021 as compared to the second quarter of the year. The $1.9 million decline is primarily related to $6.3 million of lower compensation expense associated with the mortgage banking operation offset somewhat by higher incentive compensation expense for annual bonus and long-term incentive compensation plans during the third quarter relative to the second quarter. $286.9 $286.9 $280.1 $282.1 $0.0 $180.8 $180.8 $172.8 $170.9 $— $20.9 $20.9 $20.9 $22.0 $20.0 $20.0 $17.7 $18.2 $8.5 $8.5 $11.3 $13.4 $10.8 $10.8 $9.9 $10.0 $45.9 $45.9 $47.5 $47.6 Salaries and Employee Benefits Software and Equipment Occupancy, net Advertising and Marketing Operating Lease Equipment Other Q1 2021 Q2 2021 Q3 2021 Q4 2021 Q1 2022 $4.3 $3.1 $7.9 Lending expenses, net of deferred originations costs Q1 2022 Q4 2022 Q1 2023 Strategic Cost Reductions in the Mortgage Business ($ in Millions) 1 FTE - Full-Time Equivalent Employees 1 ($ in Millions) Update title Decrease Primarily Driven by Incentive Compensation, Lower Loan Origination, and Seasonal Decline in Marketing Efficiency Ratio Improvement Driven by Increased NIM and Lower Expenses $299.2 $8.1 $4.8 $5.8 $1.5 $1.2 $320.6 Q1 2023 Non-Interest Expense Salaries and Employee Benefits Lending Expenses, net of deferred originations costs Advertising and Marketing Software and Equipment All Other Expenses Q2 2023 Non-Interest Expense 1 Extraordinary Items - TBD 1 PENDING ($ in Millions) ($ in Millions) Non-Interest Expense Continue to monitor our expenses and believe they are in line with current Company growth Higher Incentive Expense Driven By Loan Growth and Mortgage Business ($ in Millions) Increase Primarily Driven by Incentive Compensation, Employee Insurance, Higher Loan Originations and Seasonal Increase in Marketing ($ in Millions)


 
1414 $158.5 $205.9 0.59% 0.77% 0.94% Total Allowance for Credit Losses Total Allowance for Credit Losses as a % of Total Loans 12/31/19 (Pre-CECL) 1/1/2020 (CECL Day 1) 6/30/2023 • The Company estimates an increase to the allowance for credit losses of approximately 30% to 50% at adoption related to its loan portfolios and related lending commitments. Approximately 80% of the estimated increase is related to: ◦ Additions to existing reserves for unfunded lending-related commitments due to the consideration under CECL of expected utilization by the Company's borrowers over the life of such commitments. ◦ Establishment of reserves for acquired loans which previously considered credit discounts. The Company estimates an insignificant impact at adoption of measuring an allowance for credit losses for other in-scope assets (e.g. held-to-maturity debt securities). Continued Stable Levels of Non-Performing Loans Extended Low Levels of Net Charge-Offs $72.4 $97.6 $100.7 $100.7 $108.7 0.20% 0.26% 0.26% 0.25% 0.26% NPLs NPLs as a % of Total Loans 6/30/2022 9/30/2022 12/31/2022 3/31/2023 6/30/2023 $9.5 $3.2 $5.1 $5.5 $17.0$20.4 $6.4 $47.6 $23.0 $28.5 0.11% 0.03% 0.05% 0.06% 0.17% NCOs Total Provision for Credit Losses Annualized NCOs as a % of Average Total Loans Q2 2022 Q3 2022 Q4 2022 Q1 2023 Q2 2023 $20.4 $6.4 $47.6 $23.0 $28.546.51% 49.36% 10.66% 23.71% 59.73% Total Provision for Credit Losses Net Charge-Offs as a % of the Provision for Credit Losses 6/30/2022 9/30/2022 12/31/2022 3/31/2023 6/30/2023 $7.8 $53 $135.1 $0 $0 $— $— $— $— $—$7.8 $53.0 $135.1 46.5% 49.4% 10.7% 23.7% 59.7% Provision for credit losses - PCD Provision for credit losses - non PCD Net charge-offs as a percentage of the provision for credit losses Q2 2022 Q3 2022 Q4 2022 Q1 2023 Q2 2023 Incurred Loss Method CECL Incurred Loss Method CECL Q2 2023 Q1 2023 Increase/ (Decrease) Pass $ 33,700,724 $ 32,045,349 $ 1,655,375 Special Mention 755,859 794,238 (38,379) Substandard Accrual 265,452 340,516 (75,064) Substandard Nonaccrual/Doubtful 67,069 83,940 (16,871) Total Loans $ 34,789,104 $ 33,264,043 $ 1,525,061 Q2 2023 Key Observations During the fourth quarter of 2021, we continued our practice of pursuing the resolution of non-performing credits and executed a loan sale that reduced non-performing loans by approximately $10 million resulting in $1.8 million of net charge-offs. The key drivers of the shift in credit quality mix include: • Risk rating upgrades as a result of improved credit performance. • Increase in pass rated credits was driven by commercial loan growth and higher utilization on existing lines partially offset by decline in PPP Loans. ($ in Millions) ($ in Millions) ($ in Millions) Increased Allowance Coverage $38,555 $39,955 Q1 2023 Q2 2023 $630 $629 Q1 2023 Q2 2023 $380 $439 Q1 2023 Q2 2023 $83.94 $67.07 Q4 2021 Q1 2022 Q4 2021 Pass Special Mention Substandard Accrual Substandard nonaccrual Q1 2022 $340.52 $265.45 Q4 2021 Q1 2022 Pass and Loans Guaranteed1 ($ in Millions) Special Mention Substandard2 $158.5 $205.9 $312.2 $387.8 0.59% 0.77% 0.84% 0.94% Total Allowance for Credit Losses Total Allowance for Credit Losses as a % of Total Loans 12/31/19 (Pre-CECL) 1/1/2020 (CECL Day 1) 6/30/2022 6/30/2023 Modest Levels of Special Mention and Substandard Loans 1Pass and Loans Guaranteed: Includes early buy-out loans guaranteed by U.S. government agencies 2Substandard: Substandard includes Substandard Accrual and Substandard Nonaccrual/Doubtful 3Portfolio Changes: Includes new volume and run-off, changes in credit quality, aging of existing portfolio, shifts in segmentation mix, changes in specific reserves and net charge-offs $376.3 $(41.4) $53.0 $387.8 3/31/2023 Portfolio Changes Economic Factors 6/30/2023 ($ in Thousands) Macro-economic conditions Model imprecision Volume Credit Quality Aging Mix Net Charge- offs 3 97% 97% 2% 2% 1% 1% Credit Quality Exceptional credit quality supported by a diversified loan portfolio Low Levels of Net Charge-Offs Levels of Non-Performing Loans Remained Stable ($ in Millions) ($ in Millions) Increased Allowance Primarily Due to Economic Factors Special Mention and Substandard Loan Category Percentages Remained Unchanged Quarter over Quarter ($ in Millions) ($ in Millions) Linked but Prelim number not entered Pending - Manual Entries


 
1515 $39.2 $39.6 $41.0 0.91% 0.95% 0.94% Total Loan Period End Balance Allowance as a % of Category 12/31/2022 3/31/2023 6/30/2023 $1,487 $1,597 $1,760 $8,464 $8,642 $8,848 5.10% 4.70% 4.93% 1.28% 1.39% 1.46% Construction and development Non-construction Allowance as a % of Category (Construction) Allowance as a % of Category (Non-Construction) 12/31/2022 3/31/2023 6/30/2023 13% 19% 12% 25% 15% 13% 0% 3% Office Industrial Retail Multi-family Mixed use and other Commercial construction Residential construction Land $22.5 $23.0 $23.4 1.42% 1.46% 1.50% Core Loan Period End Balance Allowance as a % of Category 12/31/2022 3/31/2023 6/30/2023 Measured Growth with Low Charge-Offs NPLs Remain at Low Levels $16.7 $16.6 $17.6 0.22% 0.25% 0.21% Niche Loan Period End Balance Allowance as a % of Category 12/31/2022 3/31/2023 6/30/2023 Q2 2023 Key Observations • The CRE portfolio continues a steady growth trend while non-performing loans continue to decline. • Charge-offs have generally remained low and reflect the conservative underwriting standards the Company employs. • The CRE portfolio is well-diversified with a majority of its exposure in stabilized, income producing properties. 16% 22% 15% 30% 17% Office Industrial Retail Multi-family Mixed use and other 77% 4% 18% Commercial construction Residential construction Land ($ in Millions) ($ in Millions) $1,084 $1,071 $1,203 $1,335 $1,391 68.8% 69.1% 67.5% 65.8% 66.5% Unused Line of Credit Balance Line Utilization as a % of Total CRE 6/30/2022 9/30/2022 12/31/2022 3/31/2023 6/30/2023 Line Utilization as a % Commercial Real Estate Loans ("CRE") Commercial Real Estate Loan Composition (as of 6/30/2023) Well Diversified with Majority of Portfolio in Stabilized Income Producing Properties($ in Millions) 1 Net Charge-off Ratio is calculated as a percentage of average loans 2 As a result of a review of the composition of borrowers within the mixed use and other loan portfolio, the Company identified certain loans that would be more precisely classified within a separate class of non-construction commercial real estate. This change in classification was based on related collateral and source of repayment of the underlying loan 1 Net Charge-Off Ratio is calculated as a percentage of average loans Well Reserved Amidst Macroeconomic Uncertainty ($ in Thousands) 7% 9% 6%13% 7% 7% 0% 1% 50% Office Industrial Retail Multi-family Mixed use and other Commercial construction Residential construction Land Credit Quality - Allowance for Loan Losses The Company remains well reserved Well Reserved Across Our Core Loan PortfolioSufficient Allowance Coverage of Total Loan Portfolio ($ in Billions) ($ in Billions) $9,950,947 $10,239,078 $1,487 $1,597 $1,760 $8,464 $8,642 $8,848 5.10% 4.70% 4.93% 1.28% 1.39% 1.46% Construction and development Non-construction Allowance as a % of Category (Construction) Allowance as a % of Category (Non-Construction) 12/31/2022 3/31/2023 6/30/2023 $1,487 $1,597 $1,760 5.10% 4.70% 4.93% Construction and Development Allowance as a % of Category 12/31/2022 3/31/2023 6/30/2023 $8,464 $8,642 $8,848 1.28% 1.39% 1.46% Non-Construction Allowance as a % of Category 12/31/2022 3/31/2023 6/30/2023 Allowance Provides Appropriate Coverage Given Minimal Historic Losses in Niche Portfolio ($ in Billions) • Increase in allowance driven by a deteriorating macroeconomic forecast, offset by portfolio changes • Strong coverage to protect against any potential future economic downturn Q2 2023 Highlights


 
1616 $142.9 $135.3 $142.8 $149.5 $143.1 1.19% 1.11% 1.14% 1.19% 1.14% Calculated Allowance Allowance as a % of Category 6/30/2022 9/30/2022 12/31/2022 3/31/2023 6/30/2023 $32.4 $44.5 $36.0 $48.0 $41.0 0.27% 0.36% 0.29% 0.38% 0.33% NPLs NPL as a % of Category 6/30/2022 9/30/2022 12/31/2022 3/31/2023 6/30/2023 $12,047 $12,259 $12,549 $12,577 $12,600 0.27% (0.06)% 0.08% 0.07% 0.16% Period End Balance Net Charge-Off Ratio 6/30/2022 9/30/2022 12/31/2022 3/31/2023 6/30/2023 $6,481 $7,049 $7,178 $7,340 $7,430 41.0% 40.7% 41.3% 40.5% 39.9% Unused Line of Credit Balance (excl. Mortgage Warehouse and Leases) Line Utilization % of Total Commercial Loans (excl. Mortgage Warehouse and Leases) 3/31/2022 6/30/2022 9/30/2022 12/31/2022 3/31/2023 $5,502.6 $5,819.0 $5,852.2 $5,855.0 $5,737.6 $11,965 $12,216 $12,520 $12,560 $12,585 0.27% (0.06)% 0.08% 0.07% 0.16% Commercial and industrial Total Commercial Loans Asset-based lending Municipal Leases 1/3 6/30/2022 9/30/2022 12/31/2022 3/31/2023 6/30/2023 Sustained Portfolio Growth Paired with a Low Net Charge-Off Ratio Non-Performing Loans Remain Low $4,384 $5,513 $5,583 $6,141 $6,236 $6,489 $6,832 $7,243 46.1% 50.8% 41.4% 43.0% 39.7% 38.9% 38.4% 39.3% 39.6%45.5% 50.6% 40.6% 41.5% 37.7% 36.7% 37.0% 39.0% 40.5% Unused Line of Credit Balance Total Commercial (excl. PPP and Leases) Total Commercial (excl. PPP, Mortgage Warehouse and Leases) 6/30/2021 9/30/2021 12/31/2021 3/31/2022 6/30/2022 9/30/2022 12/31/2022 3/31/2023 6/30/2023 Q2 2023 Key Observations • Significant loan growth in Q4 2021 of $1.2 billion of which $578 million is attributed to acquired loans. • Net charge-offs in Q4 2021 were consistent with historical levels. • The proportion of Commercial non-performing loans remains relatively low as pandemic-driven circumstances continue to improve. • Line utilization increased slightly in Q4 2021 but remains historically low as a result of factors such as excess liquidity in the market as well as suspension of capital expenditures and other non- working capital payments. 1 Commercial Loans excludes PPP loans 2 Net Charge-Off Ratio is calculated as a percentage of average loans ($ in Millions) ($ in Millions) Line Utilization as a % of Commercial Loans remains low due to excess liquidity in the market and suspension of capital expenditures Allowance Provides Appropriate Coverage Commercial Loan Composition (as of 6/30/2023) ($ in Millions) 45.5% 37.7% 40.5% 40.5% Total Commercial (excl. Mortgage Warehouse and Leases) 12/31/2019 6/30/2021 6/30/2022 6/30/2023 $4,687 $4,384 $6,236 $7,260 Unused Line of Credit Balance 12/31/2019 6/30/2021 6/30/2022 6/30/2023 $4,687 $4,384 $6,236 $7,260 $4,443 $4,105 $5,837 $6,481 $244 $278 $398 $779 Unused Line of Credit Balance excluding Mortgage Warehouse Mortgage Warehouse 12/31/2019 6/30/2021 6/30/2022 6/30/2023 1 Commercial Loan Composition includes PPP loans which are less than 1% of total portfolio ($ in Thousands) ($ in Millions) 46% 12%5% 15% 9% 3% 3% 7% Commercial and industrial Asset-based lending Municipal Leases Franchise Mortgage warehouse lines of credit Community Advantage - homeowners association Insurance agency lending Credit Quality - Commercial Loans Diversified portfolio with low net charge-offs Low Levels of Non-Performing Commercial LoansSustained Portfolio Growth Paired with a Low Net Charge-Off Ratio ($ in Millions) ($ in Millions) Allowance Provides Appropriate Coverage Commercial Loan Composition (as of 6/30/2023) ($ in Millions) Pending


 
1717 13% 19% 12% 25% 15% 13% 0% 3% Office Industrial Retail Multi-family Mixed use and other Commercial construction Residential construction Land $9,407 $9,578 $9,951 $10,239 $10,609 (0.02)% 0.00% 0.02% 0.00% 0.31% Period End Balance Net Charge-Off Ratio 6/30/2022 9/30/2022 12/31/2022 3/31/2023 6/30/2023 Measured Growth with Low Charge-Offs NPLs Remain at Low Levels $10.7 $10.5 $6.4 $11.2 $18.5 0.11% 0.11% 0.06% 0.11% 0.17% NPLs NPL as a % of Category 6/30/2022 9/30/2022 12/31/2022 3/31/2023 6/30/2023 Q2 2023 Key Observations • The CRE portfolio continues a steady growth trend while non-performing loans continue to decline. • Charge-offs have generally remained low and reflect the conservative underwriting standards the Company employs. • The CRE portfolio is well-diversified with a majority of its exposure in stabilized, income producing properties. 16% 22% 15% 30% 17% Office Industrial Retail Multi-family Mixed use and other 77% 4% 18% Commercial construction Residential construction Land ($ in Millions) ($ in Millions) $1,084 $1,071 $1,203 $1,335 $1,391 68.8% 69.1% 67.5% 65.8% 66.5% Unused Line of Credit Balance Line Utilization as a % of Total CRE 6/30/2022 9/30/2022 12/31/2022 3/31/2023 6/30/2023 Line Utilization as a % Commercial Real Estate Loans ("CRE") Commercial Real Estate Loan Composition (as of 6/30/2023) Well Diversified with Majority of Portfolio in Stabilized Income Producing Properties($ in Millions) 1 Net Charge-off Ratio is calculated as a percentage of average loans 2 As a result of a review of the composition of borrowers within the mixed use and other loan portfolio, the Company identified certain loans that would be more precisely classified within a separate class of non-construction commercial real estate. This change in classification was based on related collateral and source of repayment of the underlying loan 1 Net Charge-Off Ratio is calculated as a percentage of average loans Well Reserved Amidst Macroeconomic Uncertainty $143.7 $150.7 $184.4 $194.8 $215.7 1.53% 1.57% 1.85% 1.90% 2.03% Calculated Allowance Allowance as a % of Category 6/30/2022 9/30/2022 12/31/2022 3/31/2023 6/30/2023 ($ in Thousands) 7% 9% 6%13% 7% 7% 0% 1% 50% Office Industrial Retail Multi-family Mixed use and other Commercial construction Residential construction Land 13% 19% 12% 25% 14% 13% 1% 3% Office Industrial Retail Multi-family Mixed use and other Commercial construction Residential construction Land Credit Quality - Commercial Real Estate Loans Well-diversified portfolio with a majority of its exposure in stabilized, income producing properties Low Levels of Non-Performing Commercial Real Estate Loans Increase in Net Charge-offs Driven by Proactive Sale of CRE Credits Identified as Particularly Vulnerable ($ in Millions) ($ in Millions) Well Reserved Amidst Macroeconomic Uncertainty Commercial Real Estate Loan Composition (as of 6/30/2023) ($ in Millions) Pending


 
1818 Medical, 22% Medical Owner Occupied, 3% Non-Medical Owner- Occupied, 16% Non-Medical Non Owner-Occupied, 59% $388.6 $291.0 $172.3 $208.9 $234.5 $109.1 $157.1 $151.6 $157.6 $120.2 $171.2 $66.3 CRE Office Non-Medical Non Owner-Occupied <$2MM $2M-$5M $5M-$10M $10M-$15M $15M-$20M >=$20M Chicago CBD, 13% Other CBD, 12% Suburban, 75% $132.4 $126.4 $165.5 $378.0 $291.9 $242.9 $1-$500k $500K-$1M $1M-$2M $2M-$5M $5M-$10M >=$10M Office Portfolio Geography 1Chicago CBD includes the following zip codes: 60601, 60602, 60603, 60604, 60605, 60606, 60607, 60610, 60611, 60654, 60661 2Other CBD includes the following metropolitan areas: Milwaukee, Boulder, Orlando, Saint Paul, Columbus, Akron, Cincinnati, San Antonio 1 Office Portfolio Composition Granularity of Office Portfolio ($ in Millions) ($ in Millions) 2 Medical, 22% Medical Owner Occupied 3% Non-Medical Owner- Occupied, 16% Non-Medical Non Owner-Occupied, 59% CRE Office Portfolio (as of 3/31/2023) CRE Office represents a minimal percentage of the Total Loan Portfolio $132.4 $126.4 $165.5 $378.0 $291.9 $242.9 $1-$500K $500K-$1M $1M-$2M $2M-$5M $5M-$10M >=$10M $1,054.9 $170.7$178.8 $824.0 $235.3 $304.4 ($ in Millions) 283904 90 48 27 24 17 10 14 10 5 3 Number of Loans Per Category PENDING $135.0 $125.5 $158.5 $366.9 $296.5 $309.7 $34.9 $58.8 $78.6 $214.1 $228.9 $229.3 CRE Office Non-Medical Non Owner-Occupied $1-$500K $500K- $1M $1M-$2M $2M-$5M $5M- $10M >=$10M Range $1-$500 K $500k-$1 M $1M-$2 M $2M-$5 M $5M-$10 M >=$10 M CRE Office 671 178 111 116 46 22 Non- Medical, Non- Owner 181 78 54 70 35 16 Number of Loans DO NOT TOUCH FOOTNOTE SUPERSCRIPT $130.8 $115.9 $147.0 $295.8 $174.0 $528.6 $34.2 $55.4 $73.0 $154.4 $169.4 $358.1 CRE Office Non-Medical Non Owner-Occupied <$500K $500K-$1M $1M-$2M $2M-$5M $5M-$10M >=$10M ($ in Millions) 296 909 91 48 26 22 18 11 13 10 5 3 Number of Loans Per Category UPDATE COUNT IF GO BACK CRE Office Portfolio (as of 06/30/2023) CRE office represents a minimal percentage of the total loan portfolio CRE Office Portfolio Geography ($ in Millions) CRE Office Portfolio Composition Granularity of CRE Office Portfolio by Loan Size ($ in Millions) ($ in Millions) <$2MM $2M-$5M $5M-$10M $10M-$15M $15M-$20M >=$20M # of Loans CRE 904 90 27 17 14 5 Non Med 283 48 24 10 10 3 Pending Data Portfolio Characteristics As of 6/30/2023 As of 3/31/2023 Balance ($ in Millions) $1,404 $1,392 CRE office as a % to Total CRE 13.24% 13.59% CRE office as a % to Total Loans 3.42% 3.51% Average Size of Loan ($ in Millions) $1.3 $1.3 Non-Performing Loan (NPL) Ratio 0.12% 0.01% 30+ Days Past Due Ratio 0.12% 0.41% 90+ Days Past Due Ratio 0.00% 0.00% Owner Occupied or Medical % 41% 39% $40.8


 
1919 $8,200 $1,355 Cash Surrender Value Other $7,608 $8,005 $8,091 $8,126 $8,039 0.00% 0.00% 0.00% 0.00% 0.01% Period End Balance Net Charge-Off Ratio 6/30/2022 9/30/2022 12/31/2022 3/31/2023 6/30/2023 Credit Quality - Premium Finance Receivables Life Life Insurance portfolio remains extremely robust and has continued to demonstrate exceptional credit quality Average Balances & Quarterly Yields ($ in Millions) $5,290.1 $5,462.8 $5,636.3 $5,957.5 3.71% 3.38% 3.74% 2.89% Average Balance Yield Q2 2022 Q3 2022 Q4 2022 Q1 2023 Q2 2023 Q2 2023 Key Observations • Throughout the pandemic, the Premium Finance Receivables ("PFR") - Life Insurance portfolio has remained extremely resilient and has continued to demonstrate exceptional credit quality, as shown by the characteristically low net charge-off and NPL levels. • Origination levels have remained strong. Some of the primary drivers of growth in 2021 include: ◦ increased mortality awareness in response to the pandemic. ◦ realized or anticipated changes in tax laws including changes to allowable maximum premium amounts relative to death benefit. ◦ low interest rate environment has made leveraging insurance products attractive to consumers. • Collateral as a percentage of outstanding balance is 117% as of Q2 2023. 1 Loan Collateral reported at actual values versus credit advance rate 2 Collateral Coverage is calculated by dividing Total Loan Collateral (Undiscounted) by Total Loan Portfolio Balance $315.4 $442.7 $330.3 $360.0 $371.9 Originations 6/30/2022 9/30/2022 12/31/2022 3/31/2023 6/30/2023 $1.8 $17.2 $1.1 $1.7 0.02% 0.21% 0.01% 0.02% NPLs NPL as a % of Category 6/30/2022 9/30/2022 12/31/2022 3/31/2023 6/30/2023 4% 64% 6% 19% 7% Annuity Brokerage Account Certificate of Deposit Letters of Credit Money Market Other Period-End Balances & Annualized Net Charge-off Ratio1 Collateral Coverage2 of 119% No material charge-offs have occurred in the periods presented below Credit Quality Premium Finance Receivables Life Life Insurance portfolio remains steady and has continued to demonstrate exceptional credit quality Healthy Portfolio with Low Levels of Non-Performing LoansQ2 Balances Remained Stable with Exceptional Credit Quality ($ in Millions) ($ in Millions) Total Loan Collateral1 by Type (as of 6/30/2023) "Other" Loan Collateral1 by Type (as of 6/30/2023) ($ in Millions)


 
2020 Low Levels of Non-Performing LoansExceptional Portfolio Growth in the Second Quarter $5,541 $5,714 $5,850 $5,739 $6,763 0.14% 0.30% 0.16% 0.23% 0.24% Period End Balance Net Charge-Off Ratio 6/30/2022 9/30/2022 12/31/2022 3/31/2023 6/30/2023 Steady Origination Volume Driven by Market Conditions Average Balances & Quarterly Yields ($ in Millions) $3,724.6 $4,134.0 $4,010.5 $3,952.9 5.05% 4.60% 4.60% 4.42% Average Balance Yield Q2 2022 Q3 2022 Q4 2022 Q1 2023 Q2 2023 Q2 2023 Key Observations • At the beginning of the pandemic, Premium Finance Receivables ("PFR") - Commercial experienced an increase in NPLs as a result of borrower delinquency, which was exacerbated by state emergency orders delaying cancellation of insurance policies which generate return premiums, the collateral for this portfolio. This caused NPLs to be elevated in 2020 and has subsequently returned to normalized levels in 2021. • Despite the pandemic and state emergency orders, net charge-off levels remained low and characteristic of the low loss levels expected of this portfolio, with the portfolio experiencing net recoveries in Q2 2021 and Q3 2021. • Strong origination volumes in 2021 a result of businesses seeking financing opportunities during the pandemic, hardening insurance markets, additions of new relationships and a low rate environment. 1 Net Charge-Off Ratio is calculated as a percentage of average loans $3,556 $3,515 $3,550 $3,460 $4,583 Originations Q2 2022 Q3 2022 Q4 2022 Q1 2023 Q2 2023 NPLs Remain Below Historic Norms $19.8 $29.7 $29.3 $27.8 $32.4 0.36% 0.52% 0.50% 0.48% 0.48% NPLs NPL as a % of Category 6/30/2022 9/30/2022 12/31/2022 3/31/2023 6/30/2023 $9,478 $10,182 $10,588 $11,231 $28 $38 $39 $48 Risk Rating 1-5 Risk Rating 6-10 06/30/22 09/30/22 12/31/22 03/31/23 06/30/23 $3,051 $2,232 $1,235 $245 Current Premium Finance Receivables Commercial Loan Balances Projected to Mature Based on Modeled Contractual Cash Flows ≤ 3 Months 4-6 Months 7-9 Months > 9 months Yet to Realize Full Benefit of Prior Rate Increases Current Loan Balances Projected to Reprice or Mature Based on Modeled Contractual Cash Flows Seasonal Portfolio Decline Premium Finance Receivables Commercial ($ in Millions) ($ in Millions) Yet to Realize Full Benefit of Prior Rate Increases Increased Origination Volume Driven by Seasonality and Favorable Market Conditions ($ in Millions) ($ in Millions) PENDING


 
2121 Appendix


 
2222 $132.4 $126.4 $165.5 $378.0 $291.9 $242.9 $1-$500k $500K-$1M $1M-$2M $2M-$5M $5M-$10M >=$10M Use of Hedges to Mitigate Negative Impacts of Falling Rates Chicago CBD, $187.0, 14% Other CBD, $171.7, 13% Suburban, $978.5, 73%Chicago CBD Other CBD Suburban 1Chicago CBD (Central Business District) includes the following zip codes: 60601, 60602, 60603, 60604, 60605, 60606, 60607, 60610, 60611, 60654, 60661 2Other CBD includes the following metropolitan areas: Milwaukee, Boulder, Orlando, Saint Paul, Columbus, Akron, Cincinnati, San Antonio 3Net Charge-Off Ratio annualized utilizing charge-offs in the fourth quarter of 2022 1 Office Portfolio Makeup as of 12/31/2022 Office Composition by Balance as of 12/31/2022 ($ in Millions) ($ in Millions) 2 Medical, 21% Non-Medical Owner- Occupied, 19% Non-Medical Non Owner-Occupied, 60%Medical Non-Medical Owner-Occupied Non-Medical Non Owner-Occupied Weighted Avg Rate (Receive Fixed Rate vs Term SOFR) Hedge Rate: 2023: 3.76% 2024: 3.76% 2025: 3.76% 2026: 3.65% 2027: 3.55% Forward Rate: 2023: 4.51% 2024: 3.68% 2025: 3.23% 2026: 2.95% 2027: 2.82% Gain/(Loss): 2023($32MM) 2024 $5MM 2025 $29MM 2026 $25MM 2027 $11MM Hedging activities had a 15 bp detriment to our Q2 2023 NIM as compared to 7 bps in Q1 2023. However, these derivatives are expected to benefit the Company if interest rates fall materially. Weighted Average Rate (Receive Fixed Rated vs Term SOFR) Hedge Rate 2023 2024 2025 2026 2027 3.76 % 3.76 % 3.76 % 3.65 % 3.55 % Forward Rate 2023 2024 2025 2026 2027 4.51 % 3.68 % 3.23 % 2.95 % 2.82 % Gains/(Losses) 2023 2024 2025 2026 2027 $ (32) MM $ 5 MM $ 29 MM $ 25 MM $ 11 MM As of As of Increase/ Deposit Composition as of 3/31/2023 Deposit Composition as of 3/9/20233/31/2023 3/9/2023 (Decrease) Deposits: Retail / Business Non-Interest Bearing Deposits $ 9,824,253.109 $ 10,847,472.262 $ (1,023,219) #REF! #REF! Retail / Business Interest Bearing Deposits 19,108,943.386 19,216,379.959 (107,437) #REF! #REF! Maxsafe 4,952,632.102 3,996,247.422 956,385 #REF! #REF! Internal Wealth Mgmt 921,287.04 1,012,564.517 (91,277) #REF! #REF! Other Niche $ 1,218,872.425 $ 1,589,795.093 $ (370,923) #REF! #REF! CDEC 888,646.221 923,903.995 (35,258) #REF! #REF! Wholesale - Brokered 4,059,575.872 2,721,370.888 1,338,205 #REF! #REF! Wholesale - Non-Brokered 1,743,982 1,538,108 205,874 #REF! #REF! Total Niche/Wholesale Deposits $ 7,911,076,518 $ 6,773,177,976 $ 1,137,899 #REF! #REF! Total Deposits #REF! #REF! #REF! #REF! #REF! Hedge Type Effective Date Notional Maturity Date Cap Rate Floor Rate Swap Rate Costless Collar 9/1/2022 $1.25B 9/1/2025 3.74% 2.25% N/A Costless Collar 9/1/2022 $1.25B 9/1/2027 3.45% 2.00% N/A Costless Collar 10/1/2022 $0.5B 10/1/2026 4.32% 2.75% N/A Receive Fixed Swap 1/31/2023 $0.5B 12/31/2025 N/A N/A 3.75% Receive Fixed Swap 1/31/2023 $0.5B 12/31/2026 N/A N/A 3.51% Receive Fixed Swap 2/1/2023 $0.25B 2/1/2026 N/A N/A 3.68% Receive Fixed Swap 2/1/2023 $0.25B 2/1/2027 N/A N/A 3.45% Receive Fixed Swap 3/1/2023 $0.25B 3/1/2026 N/A N/A 3.92% Receive Fixed Swap 3/1/2023 $0.25B 3/1/2028 N/A N/A 3.53% Receive Fixed Swap 3/1/2023 $0.25B 3/1/2026 N/A N/A 4.18% Receive Fixed Swap 3/1/2023 $0.25B 3/1/2028 N/A N/A 3.75% Receive Fixed Swap 4/1/2023 $0.25B 7/1/2026 N/A N/A 4.45% Receive Fixed Swap 4/1/2023 $0.25B 7/1/2027 N/A N/A 4.15% Hedging Strategy Update Below are the details of the derivatives entered by the Company as of 6/30/2023. These derivatives hedge the cash flows of variable rate loans that reprice monthly based on one-month term SOFR. Pending Data Hedging Strategy Update Use of Hedges to Mitigate Negative Impacts of Falling Rates


 
2323 Canada Market: 1Geographic Diversification: relevant business location utilized, which can mean the following locations: collateral location, customer business location, customer home address and customer billing address States/Jurisdictions that individually comprise 1% or less of the Total Loan Portfolio shaded light blue 2% 9% 6% 36% 2% 2% 5% 2% 5% NP - Puerto Rico NP - Virgin Islands 1% 1% 1% 2% 2% 2% 5% 1% 1% 1% 1%1% 1% 1% 1% 1% 1% 1% 1% 1% Loan Portfolio Highly diversified portfolio across U.S Loan Portfolio - Geographic Diversification1 (as of 6/30/2023) 36% 9% 7% 6% 5% 5% 2% 2% 2% 2% 2% 2% 2%Canada Market: Total Loan Portfolio Primary Geographic Region Commercial: Commercial, industrial and other Illinois/Wisconsin Leasing Nationwide Franchise Lending Nationwide Commercial real estate Construction and development Illinois/Wisconsin Non-construction Illinois/Wisconsin Home equity Illinois/Wisconsin Residential Real Estate Illinois/Wisconsin Premium finance receivables Commercial insurance loans Nationwide and Canada Life insurance loans Nationwide Consumer and other Illinois/Wisconsin


 
2424 Abbreviation Definition AFS Available For Sale BOLI Bank Owned Life Insurance BP Basis Point BV Book Value per Common Share CBD Central Business District CDEC Chicago Deferred Exchange Company CECL Current Expected Credit Losses CET1 Ratio Common Equity Tier 1 Capital Ratio CRE Commercial Real Estate DDA Demand Deposit Account Diluted EPS Net Income per Common Share - Diluted FDIC Federal Deposit Insurance Corporation FY Full Year FHLB Federal Home Loan Bank GAAP Generally Accepted Accounting Principles HTM Held to Maturity Interest Bearing Cash Total Interest-Bearing Deposits with Banks, Securities Purchased under Resale Agreements and Cash Equivalents MSR Mortgage Servicing Right NCO Net Charge Off NII Net Interest Income NIM Net Interest Margin Non-GAAP For non-GAAP metrics, see the reconciliation in the Appendix NP Not Pictured NPL Non-Performing Loan PFR Premium Finance Receivables PPP Paycheck Protection Program PTPP Pre-Tax, Pre-Provision Income ROA Return on Assets ROE Return on Average Common Equity ROTCE Return on Average Tangible Common Equity RWA Risk-Weighted Asset SOFR Secured Overnight Financing Rate TBV Tangible Book Value per Common Share Glossary


 
2525 Three Months Ended Reconciliation of non-GAAP Net Interest Margin and Efficiency Ratio ($ in Thousands): June 30, March 31, December 31, September 30, June 30, 2023 2023 2022 2022 2022 (A) Interest Income (GAAP) $ 697,176 $ 639,690 $ 580,745 $ 466,478 $ 371,968 Taxable-equivalent adjustment: - Loans 1,882 1,872 1,594 1,030 568 - Liquidity Management Assets 551 551 538 502 472 - Other Earning Assets 1 4 1 1 1 (B) Interest Income (non-GAAP) $ 699,610 $ 642,117 $ 582,878 $ 468,011 $ 373,009 (C) Interest Expense (GAAP) $ 249,639 $ 181,695 $ 123,929 $ 65,030 $ 34,164 (D) Net Interest Income (GAAP) (A minus C) $ 447,537 $ 457,995 $ 456,816 $ 401,448 $ 337,804 (E) Net Interest Income (non-GAAP) (B minus C) $ 449,971 $ 460,422 $ 458,949 $ 402,981 $ 338,845 Net interest margin (GAAP) 3.64% 3.81% 3.71% 3.34% 2.92% Net interest margin, fully taxable-equivalent (non-GAAP) 3.66% 3.83% 3.73% 3.35% 2.93% (F) Non-interest income $ 113,030 $ 107,769 $ 93,839 $ 101,482 $ 102,942 (G) Gains (losses) on investment securities, net — 1,398 (6,745) (3,103) (7,797) (H) Non-interest expense 320,623 299,169 307,836 296,469 288,668 Efficiency ratio (H/(D+F-G)) 57.20% 53.01% 55.23% 58.59% 64.36% Efficiency ratio (non-GAAP) (H/(E+F-G)) 56.95% 52.78% 55.02% 58.41% 64.21% 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. 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. Reconciliation of non-GAAP Pre-Tax, Pre-Provision Income, Adjusted for Changes in Fair Value of MSRs, net of economic hedge and Early Buy-out Loans Guaranteed by U.S. government agencies: ($ in Thousands): Income before taxes $ 211,430 $ 243,550 $ 195,173 $ 200,041 $ 131,661 Add: Provision for credit losses $ 28,514 $ 23,045 $ 47,646 $ 6,420 $ 20,417 Pre-tax income, excluding provision for credit losses (non-GAAP) $ 239,944 $ 266,595 $ 242,819 $ 206,461 $ 152,078 Non-GAAP Reconciliation


 
2626 Three Months Ended Reconciliation of non-GAAP Tangible Common Equity ($'s and Shares in Thousands): June 30, March 31, December 31, September 30, June 30, 2023 2023 2022 2022 2022 Total shareholders’ equity (GAAP) $ 5,041,912 $ 5,015,506 $ 4,796,838 $ 4,637,980 $ 4,727,623 Less: Non-convertible preferred stock (GAAP) (412,500) (412,500) (412,500) (412,500) (412,500) Less: Intangible assets (GAAP) (682,327) (674,538) (675,710) (676,699) (679,827) (I) Total tangible common shareholders’ equity (non-GAAP) $ 3,947,085 $ 3,928,468 $ 3,708,628 $ 3,548,781 $ 3,635,296 (J) Total assets (GAAP) 54,286,176 52,873,511 52,949,649 52,382,939 50,969,332 Less: Intangible assets (GAAP) (682,327) (674,538) (675,710) (676,699) (679,827) (K) Total tangible assets (non-GAAP) $ 53,603,849 $ 52,198,973 $ 52,273,939 $ 51,706,240 $ 50,289,505 Common equity to assets ratio (GAAP) (L/J) 8.5 % 8.7 % 8.3 % 8.1 % 8.5 % Tangible common equity ratio (non-GAAP) (I/K) 7.4 % 7.5 % 7.1 % 6.9 % 7.2 % Reconciliation of non-GAAP Tangible Book Value per Common Share ($'s and Shares in Thousands): Total shareholders’ equity $ 5,041,912 $ 5,015,506 $ 4,796,838 $ 4,637,980 $ 4,727,623 Less: Preferred stock (412,500) (412,500) (412,500) (412,500) (412,500) (L) Total common equity $ 4,629,412 $ 4,603,006 $ 4,384,338 $ 4,225,480 $ 4,315,123 (M) Actual common shares outstanding 61,198 61,176 60,794 60,743 60,722 Book value per common share (L/M) $75.65 $75.24 $72.12 $69.56 $71.06 Tangible book value per common share (non-GAAP) (I/M) $64.50 $64.22 $61.00 $58.42 $59.87 Reconciliation of Non-GAAP Pre-Tax, Pre-Provision Income ($ in Thousands): Income before taxes $ 211,430 $ 243,550 $ 195,173 $ 200,041 $ 131,661 $ 454,980 $ 305,341 Add: Provision for credit losses 28,514 23,045 47,646 6,420 20,417 51,559 24,523 Pre-tax income, excluding provision for credit losses (non-GAAP) $ 239,944 $ 266,595 $ 242,819 $ 206,461 $ 152,078 $ 506,539 $ 329,864 Reconciliation of Non-GAAP Return on Average Tangible Common Equity: ($'s and Shares in Thousands): June 30, March 31, December 31, September 30, June 30, 2023 2023 2022 2022 2022 (N) Net income applicable to common shares $ 173,207 $ 137,826 $ 1,492 $ 1,579 $ 120,400 Add: Intangible asset amortization 1,235 1,436 $ (425) $ (445) 1,609 Less: Tax effect of intangible asset amortization (321) (370) 1067000 1,134 (430) After-tax intangible asset amortization $ 914 $ 1,066 137,037 88,656 $ 1,179 (O) Tangible net income applicable to common shares (non-GAAP) $ 174,121 $ 138,892 $ 4,795,387 $ 4,526,110 $ 121,579 Total average shareholders’ equity $ 4,895,271 $ 4,710,856 $ (412,500) $ (412,500) $ 4,500,460 Less: Average preferred stock (412,500) (412,500) 4,382,887 4,113,610 (412,500) (P) Total average common shareholders’ equity $ 4,482,771 $ 4,298,356 $ (678,953) $ (681,091) $ 4,087,960 Less: Average intangible assets (675,247) (676,371) 3,703,934 3,432,519 (682,603) (Q) Total average tangible common shareholders’ equity (non-GAAP) $ 3,807,524 $ 3,621,985 $0.12 $0.09 $ 3,405,357 Return on average common equity, annualized (N/P) 15.67 % 12.72 % 11.94 % Return on average tangible common equity, annualized (non-GAAP) (O/Q) 0.1854636737388 63 Three Months Ended Reconciliation of non-GAAP Return on Average Tangible Common Equity ($ in Thousands): June 30, March 31, December 31, September 30, June 30, 2023 2023 2022 2022 2022 (N) Net income applicable to common shares $ 147,759 $ 173,207 $ 137,826 $ 135,970 $ 87,522 Add: Intangible asset amortization $ 1,499 $ 1,235 $ 1,436 $ 1,492 1579000 Less: Tax effect of intangible asset amortization $ (402) $ (321) $ (370) $ (425) (445) After-tax intangible asset amortization $ 1,097 $ 914 $ 1,066 $ 1,067 1,134 (O) Tangible net income applicable to common shares (non-GAAP) $ 148,856 $ 174,121 $ 138,892 $ 137,037 88,656 Total average shareholders’ equity $ 5,044,718 $ 4,895,271 $ 4,710,856 $ 4,795,387 $ 4,526,110 Less: Average preferred stock $ (412,500) $ (412,500) $ (412,500) $ (412,500) $ (412,500) (P) Total average common shareholders’ equity $ 4,632,218 $ 4,482,771 $ 4,298,356 $ 4,382,887 $ 4,113,610 Less: Average intangible assets $ (682,561) $ (675,247) $ (676,371) $ (678,953) $ (681,091) (Q) Total average tangible common shareholders’ equity (non-GAAP) $3,949,657 $3,807,524 $3,621,985 $3,703,934 $3,432,519 Return on average common equity, annualized (N/P) 12.79% 15.67% 12.72% 12.31% 8.53% Return on average tangible common equity, annualized (non-GAAP) (O/Q) 15.12 18.55 15.21 14.68 10.36 Non-GAAP Reconciliation 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. 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.


 
2727 Reconciliation of Non-GAAP Pre-Tax, Pre-Provision Income ($ in Thousands): Income before taxes $ 211,430 $ 243,550 $ 195,173 $ 200,041 $ 131,661 $ 454,980 $ 305,341 Add: Provision for credit losses 28,514 23,045 47,646 6,420 20,417 51,559 24,523 Pre-tax income, excluding provision for credit losses (non-GAAP) $ 239,944 $ 266,595 $ 242,819 $ 206,461 $ 152,078 $ 506,539 $ 329,864 Three Months Ended Reconciliation of non-GAAP Return on Average Tangible Common Equity ($ in Thousands): June 30, March 31, December 31, September 30, June 30, 2023 2023 2022 2022 2022 (N) Net income applicable to common shares $ 147,759 $ 173,207 $ 137,826 $ 135,970 $ 87,522 Add: Intangible asset amortization $ 1,499 $ 1,235 $ 1,436 $ 1,492 $ 1,579 Less: Tax effect of intangible asset amortization $ (402) $ (321) $ (370) $ (425) (445) After-tax intangible asset amortization $ 1,097 $ 914 $ 1,066 $ 1,067 1,134 (O) Tangible net income applicable to common shares (non-GAAP) $ 148,856 $ 174,121 $ 138,892 $ 137,037 $ 88,656 Total average shareholders’ equity $ 5,044,718 $ 4,895,271 $ 4,710,856 $ 4,795,387 $ 4,526,110 Less: Average preferred stock $ (412,500) $ (412,500) $ (412,500) $ (412,500) $ (412,500) (P) Total average common shareholders’ equity $ 4,632,218 $ 4,482,771 $ 4,298,356 $ 4,382,887 $ 4,113,610 Less: Average intangible assets $ (682,561) $ (675,247) $ (676,371) $ (678,953) $ (681,091) (Q) Total average tangible common shareholders’ equity (non-GAAP) $3,949,657 $3,807,524 $3,621,985 $3,703,934 $3,432,519 Return on average common equity, annualized (N/P) 12.79% 15.67% 12.72% 12.31% 8.53% Return on average tangible common equity, annualized (non-GAAP) (O/Q) 15.12 18.55 15.21 14.68 10.36 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. 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. Non-GAAP Reconciliation