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

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

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

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

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

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

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

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

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

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

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

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

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

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

SUMMARY OF RESULTS:

BALANCE SHEET

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

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

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

NET INTEREST INCOME

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

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

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

ASSET QUALITY

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

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

Net charge-offs totaled $26.7 million in the third quarter of 2024, a decrease of $3.3 million as compared to $30.0 million of net charge-offs in the second quarter of 2024. Approximately $18.3 million of charge-offs in the current quarter were previously reserved for in the second quarter of 2024. Net charge-offs as a percentage of average total loans were 23 basis points in the third quarter of 2024 on an annualized basis compared to 28 basis points on an annualized basis in the second quarter of 2024. For more information regarding net charge-offs, see Table 10 in this report.

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

Non-performing assets totaled $193.4 million and comprised 0.30% of total assets as of September 30, 2024, as compared to $194.0 million, or 0.32% of total assets, as of June 30, 2024. Non-performing loans totaled $179.7 million and comprised 0.38% of total loans at September 30, 2024, as compared to $174.3 million and 0.39% of total loans at June 30, 2024. The increase in the third quarter of 2024 was primarily due to an increase in certain credits within the commercial portfolios becoming nonaccrual. For more information regarding non-performing assets, see Table 14 in this report.

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

NON-INTEREST INCOME

Wealth management revenue increased by $1.8 million in the third quarter of 2024 as compared to the second quarter of 2024 primarily due to the Macatawa acquisition and increased asset management fees from higher assets under management during the period. Wealth management revenue is comprised of the trust and asset management revenue of Wintrust Private Trust Company and Great Lakes Advisors, the brokerage commissions, managed money fees and insurance product commissions at Wintrust Investments and fees from tax-deferred like-kind exchange services provided by the Chicago Deferred Exchange Company.

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

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

Fees from covered call options decreased by $1.1 million in the third quarter of 2024 as compared to the second quarter of 2024. The Company has typically written call options with terms of less than three months against certain U.S. Treasury and agency securities held in its portfolio for liquidity and other purposes. Management has entered into these transactions with the goal of economically hedging security positions and enhancing its overall return on its investment portfolio. These option transactions are designed to mitigate overall interest rate risk and do not qualify as hedges pursuant to accounting guidance.

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

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

NON-INTEREST EXPENSE

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

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

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

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

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

INCOME TAXES

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

BUSINESS UNIT SUMMARY

Community Banking

Through its community banking unit, the Company provides banking and financial services primarily to individuals, small to mid-sized businesses, local governmental units and institutional clients residing primarily in the local areas the Company services. In the third quarter of 2024, the community banking unit expanded its commercial, commercial real estate and residential real estate loan portfolios.

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

Specialty Finance

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

Wealth Management

Through four separate subsidiaries within its wealth management unit, the Company offers a full range of wealth management services, including trust and investment services, tax-deferred like-kind exchange services, asset management, and securities brokerage services. See “Items Impacting Comparative Results,” regarding the sale of the Company’s Retirement Benefits Advisors (“RBA”) division during the first quarter of 2024. Wealth management revenue totaled $37.2 million in the third quarter of 2024, relatively stable as compared to the second quarter of 2024. At September 30, 2024, the Company’s wealth management subsidiaries had approximately $51.1 billion of assets under administration, which included $8.0 billion of assets owned by the Company and its subsidiary banks.

ITEMS IMPACTING COMPARATIVE FINANCIAL RESULTS

Business Combination

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

Division Sale

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

Business Combination

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

WINTRUST FINANCIAL CORPORATION
Key Operating Measures

Wintrust’s key operating measures and growth rates for the third quarter of 2024, as compared to the second quarter of 2024 (sequential quarter) and third quarter of 2023 (linked quarter), are shown in the table below:

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

(1)   Period-end balance sheet percentage changes are annualized.
(2)   See Table 18: Supplemental Non-GAAP Financial Measures/Ratios for additional information on this performance measure/ratio.
(3)   Net revenue is net interest income plus non-interest income.
(4)   The net overhead ratio is calculated by netting total non-interest expense and total non-interest income, annualizing this amount, and dividing by that period’s average total assets. A lower ratio indicates a higher degree of efficiency.
(5)   Excludes mortgage loans held-for-sale.

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

WINTRUST FINANCIAL CORPORATION
Selected Financial Highlights

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

(1)   Excludes mortgage loans held-for-sale.
(2)   Net revenue is net interest income plus non-interest income.
(3)   See Table 18: Supplemental Non-GAAP Financial Measures/Ratios for additional information on this performance measure/ratio.
(4)   The net overhead ratio is calculated by netting total non-interest expense and total non-interest income, annualizing this amount, and dividing by that period’s average total assets. A lower ratio indicates a higher degree of efficiency.
(5)   Capital ratios for current quarter-end are estimated.
(6)   The allowance for credit losses includes the allowance for loan losses, the allowance for unfunded lending-related commitments and the allowance for held-to-maturity securities losses.

WINTRUST FINANCIAL CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CONDITION

  (Unaudited) (Unaudited) (Unaudited)   (Unaudited)
  Sep 30, Jun 30, Mar 31, Dec 31, Sep 30,
(In thousands) 2024
 2024
 2024
 2023
 2023
Assets          
Cash and due from banks $725,465  $415,462  $379,825  $423,404  $418,088 
Federal funds sold and securities purchased under resale agreements  5,663   62   61   60   60 
Interest-bearing deposits with banks  3,648,117   2,824,314   2,131,077   2,084,323   2,448,570 
Available-for-sale securities, at fair value  3,912,232   4,329,957   4,387,598   3,502,915   3,611,835 
Held-to-maturity securities, at amortized cost  3,677,420   3,755,924   3,810,015   3,856,916   3,909,150 
Trading account securities  3,472   4,134   2,184   4,707   1,663 
Equity securities with readily determinable fair value  125,310   112,173   119,777   139,268   134,310 
Federal Home Loan Bank and Federal Reserve Bank stock  266,908   256,495   224,657   205,003   204,040 
Brokerage customer receivables  16,662   13,682   13,382   10,592   14,042 
Mortgage loans held-for-sale, at fair value  461,067   411,851   339,884   292,722   304,808 
Loans, net of unearned income  47,067,447   44,675,531   43,230,706   42,131,831   41,446,032 
Allowance for loan losses  (360,279)  (363,719)  (348,612)  (344,235)  (315,039)
Net loans  46,707,168   44,311,812   42,882,094   41,787,596   41,130,993 
Premises, software and equipment, net  772,002   722,295   744,769   748,966   747,501 
Lease investments, net  270,171   275,459   283,557   281,280   275,152 
Accrued interest receivable and other assets  1,721,090   1,671,334   1,580,142   1,551,899   1,674,681 
Trade date securities receivable  551,031   —   —   690,722   — 
Goodwill  800,780   655,955   656,181   656,672   656,109 
Other acquisition-related intangible assets  123,866   20,607   21,730   22,889   24,244 
Total assets $63,788,424  $59,781,516  $57,576,933  $56,259,934  $55,555,246 
Liabilities and Shareholders’ Equity          
Deposits:          
Non-interest-bearing $10,739,132  $10,031,440  $9,908,183  $10,420,401  $10,347,006 
Interest-bearing  40,665,834   38,017,586   36,540,675   34,976,769   34,645,680 
Total deposits  51,404,966   48,049,026   46,448,858   45,397,170   44,992,686 
Federal Home Loan Bank advances  3,171,309   3,176,309   2,676,751   2,326,071   2,326,071 
Other borrowings  647,043   606,579   575,408   645,813   643,999 
Subordinated notes  298,188   298,113   437,965   437,866   437,731 
Junior subordinated debentures  253,566   253,566   253,566   253,566   253,566 
Accrued interest payable and other liabilities  1,613,638   1,861,295   1,747,985   1,799,922   1,885,580 
Total liabilities  57,388,710   54,244,888   52,140,533   50,860,408   50,539,633 
Shareholders’ Equity:          
Preferred stock  412,500   412,500   412,500   412,500   412,500 
Common stock  66,546   61,825   61,798   61,269   61,244 
Surplus  2,470,228   1,964,645   1,954,532   1,943,806   1,933,226 
Treasury stock  (6,098)  (5,760)  (5,757)  (2,217)  (1,966)
Retained earnings  3,748,715   3,615,616   3,498,475   3,345,399   3,253,332 
Accumulated other comprehensive loss  (292,177)  (512,198)  (485,148)  (361,231)  (642,723)
Total shareholders’ equity  6,399,714   5,536,628   5,436,400   5,399,526   5,015,613 
Total liabilities and shareholders’ equity $63,788,424  $59,781,516  $57,576,933  $56,259,934  $55,555,246 

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

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

TABLE 1: LOAN PORTFOLIO MIX AND GROWTH RATES

          % Growth From
(Dollars in thousands)Sep 30,
2024		 Jun 30,
2024		 Mar 31,
2024		 Dec 31,
2023		 Sep 30,
2023		Dec 31,
2023(1)		 Sep 30,
2023
Balance:            
Mortgage loans held-for-sale, excluding early buy-out exercised loans guaranteed by U.S. government agencies$314,693 $281,103 $193,064 $155,529 $190,511NM 65%
Mortgage loans held-for-sale, early buy-out exercised loans guaranteed by U.S. government agencies 146,374  130,748  146,820  137,193  114,2979  28 
Total mortgage loans held-for-sale$461,067 $411,851 $339,884 $292,722 $304,80877% 51%
             
Core loans:            
Commercial            
Commercial and industrial$6,768,382 $6,226,336 $6,105,968 $5,804,629 $5,894,73222% 15%
Asset-based lending 1,709,685  1,465,867  1,355,255  1,433,250  1,396,59126  22 
Municipal 827,125  747,357  721,526  677,143  676,91530  22 
Leases 2,443,721  2,439,128  2,344,295  2,208,368  2,109,62814  16 
PPP loans 6,301  9,954  11,036  11,533  13,744(61) (54)
Commercial real estate            
Residential construction 73,088  55,019  57,558  58,642  51,55033  42 
Commercial construction 1,984,240  1,866,701  1,748,607  1,729,937  1,547,32220  28 
Land 346,362  338,831  344,149  295,462  294,90123  17 
Office 1,675,286  1,585,312  1,566,748  1,455,417  1,422,74820  18 
Industrial 2,527,932  2,307,455  2,190,200  2,135,876  2,057,95725  23 
Retail 1,404,586  1,365,753  1,366,415  1,337,517  1,341,4517  5 
Multi-family 3,193,339  2,988,940  2,922,432  2,815,911  2,710,82918  18 
Mixed use and other 1,588,584  1,439,186  1,437,328  1,515,402  1,519,4226  5 
Home equity 427,043  356,313  340,349  343,976  343,25832  24 
Residential real estate            
Residential real estate loans for investment 3,252,649  2,933,157  2,746,916  2,619,083  2,538,63032  28 
Residential mortgage loans, early buy-out eligible loans guaranteed by U.S. government agencies 92,355  88,503  90,911  92,780  97,911(1) (6)
Residential mortgage loans, early buy-out exercised loans guaranteed by U.S. government agencies 43,034  45,675  52,439  57,803  71,062(34) (39)
Total core loans$28,363,712 $26,259,487 $25,402,132 $24,592,729 $24,088,65120% 18%
             
Niche loans:            
Commercial            
Franchise$1,191,686 $1,150,460 $1,122,302 $1,092,532 $1,074,16212% 11%
Mortgage warehouse lines of credit 750,462  593,519  403,245  230,211  245,450302  206 
Community Advantage - homeowners association 501,645  491,722  475,832  452,734  424,05414  18 
Insurance agency lending 1,048,686  1,030,119  964,022  921,653  890,19718  18 
Premium Finance receivables            
U.S. property & casualty insurance 6,253,271  6,142,654  6,113,993  5,983,103  5,815,3466  8 
Canada property & casualty insurance 878,410  958,099  826,026  920,426  907,401(6) (3)
Life insurance 7,996,899  7,962,115  7,872,033  7,877,943  7,931,8082  1 
Consumer and other 82,676  87,356  51,121  60,500  68,96349  20 
Total niche loans$18,703,735 $18,416,044 $17,828,574 $17,539,102 $17,357,3819% 8%
             
Total loans, net of unearned income$47,067,447 $44,675,531 $43,230,706 $42,131,831 $41,446,03216% 14%

(1)   Annualized.

TABLE 2: DEPOSIT PORTFOLIO MIX AND GROWTH RATES

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

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

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

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

TABLE 4: QUARTERLY AVERAGE BALANCES

  Average Balance for three months ended,
  Sep 30, Jun 30, Mar 31, Dec 31, Sep 30,
(In thousands) 2024
 2024
 2024
 2023
 2023
Interest-bearing deposits with banks, securities purchased under resale agreements and cash equivalents(1) $2,413,728  $1,485,481  $1,254,332  $1,682,176  $2,053,568 
Investment securities(2)  8,276,576   8,203,764   8,349,796   7,971,068   7,706,285 
FHLB and FRB stock  263,707   253,614   230,648   204,593   201,252 
Liquidity management assets(3) $10,954,011  $9,942,859  $9,834,776  $9,857,837  $9,961,105 
Other earning assets(3)(4)  17,542   15,257   15,081   14,821   17,879 
Mortgage loans held-for-sale  376,251   347,236   290,275   279,569   319,099 
Loans, net of unearned income(3)(5)  45,920,586   43,819,354   42,129,893   41,361,952   40,707,042 
Total earning assets(3) $57,268,390  $54,124,706  $52,270,025  $51,514,179  $51,005,125 
Allowance for loan and investment security losses  (383,736)  (360,504)  (361,734)  (329,441)  (319,491)
Cash and due from banks  467,333   434,916   450,267   443,989   459,819 
Other assets  3,563,296   3,294,066   3,244,137   3,388,348   3,236,528 
Total assets $60,915,283  $57,493,184  $55,602,695  $55,017,075  $54,381,981 
           
NOW and interest-bearing demand deposits $5,174,673  $4,985,306  $5,680,265  $5,868,976  $5,815,155 
Wealth management deposits  1,362,747   1,531,865   1,510,203   1,704,099   1,512,765 
Money market accounts  16,436,111   15,272,126   14,474,492   14,212,320   14,155,446 
Savings accounts  6,096,746   5,878,844   5,792,118   5,676,155   5,472,535 
Time deposits  9,598,109   8,546,172   7,148,456   6,645,980   6,495,906 
Interest-bearing deposits $38,668,386  $36,214,313  $34,605,534  $34,107,530  $33,451,807 
Federal Home Loan Bank advances  3,178,973   3,096,920   2,728,849   2,326,073   2,241,292 
Other borrowings  622,792   587,262   627,711   633,673   657,454 
Subordinated notes  298,135   410,331   437,893   437,785   437,658 
Junior subordinated debentures  253,566   253,566   253,566   253,566   253,566 
Total interest-bearing liabilities $43,021,852  $40,562,392  $38,653,553  $37,758,627  $37,041,777 
Non-interest-bearing deposits  10,271,613   9,879,134   9,972,646   10,406,585   10,612,009 
Other liabilities  1,631,389   1,601,485   1,536,039   1,785,667   1,644,312 
Equity  5,990,429   5,450,173   5,440,457   5,066,196   5,083,883 
Total liabilities and shareholders’ equity $60,915,283  $57,493,184  $55,602,695  $55,017,075  $54,381,981 
           
Net free funds/contribution(6) $14,246,538  $13,562,314  $13,616,472  $13,755,552  $13,963,348 

(1)   Includes interest-bearing deposits from banks and securities purchased under resale agreements with original maturities of greater than three months. Cash equivalents include federal funds sold and securities purchased under resale agreements with original maturities of three months or less.
(2)   Investment securities includes investment securities classified as available-for-sale and held-to-maturity, and equity securities with readily determinable fair values. Equity securities without readily determinable fair values are included within other assets.
(3)   See Table 18: Supplemental Non-GAAP Financial Measures/Ratios for additional information on this performance measure/ratio.
(4)   Other earning assets include brokerage customer receivables and trading account securities.
(5)   Loans, net of unearned income, include non-accrual loans.
(6)   Net free funds are the difference between total average earning assets and total average interest-bearing liabilities. The estimated contribution to net interest margin from net free funds is calculated using the rate paid for total interest-bearing liabilities.

TABLE 5: QUARTERLY NET INTEREST INCOME

  Net Interest Income for three months ended,
  Sep 30, Jun 30, Mar 31, Dec 31, Sep 30,
(In thousands) 2024
 2024
 2024
 2023
 2023
Interest income:          
Interest-bearing deposits with banks, securities purchased under resale agreements and cash equivalents $32,885  $19,748  $16,677  $22,340  $28,022 
Investment securities  70,260   70,346   70,228   68,812   59,737 
FHLB and FRB stock  5,451   4,974   4,478   3,792   3,896 
Liquidity management assets(1) $108,596  $95,068  $91,383  $94,944  $91,655 
Other earning assets(1)  282   235   198   222   291 
Mortgage loans held-for-sale  6,233   5,434   4,146   4,318   4,767 
Loans, net of unearned income(1)  796,637   752,117   712,587   697,093   668,183 
Total interest income $911,748  $852,854  $808,314  $796,577  $764,896 
           
Interest expense:          
NOW and interest-bearing demand deposits $30,971  $32,719  $34,896  $38,124  $36,001 
Wealth management deposits  10,158   10,294   10,461   12,076   9,350 
Money market accounts  167,382   155,100   137,984   130,252   124,742 
Savings accounts  42,892   41,063   39,071   36,463   31,784 
Time deposits  110,616   96,527   77,120   68,475   60,906 
Interest-bearing deposits $362,019  $335,703  $299,532  $285,390  $262,783 
Federal Home Loan Bank advances  26,254   24,797   22,048   18,316   17,436 
Other borrowings  9,013   8,700   9,248   9,557   9,384 
Subordinated notes  3,712   5,185   5,487   5,522   5,491 
Junior subordinated debentures  5,023   4,984   5,004   5,089   4,948 
Total interest expense $406,021  $379,369  $341,319  $323,874  $300,042 
           
Less: Fully taxable-equivalent adjustment  (3,144)  (2,875)  (2,801)  (2,729)  (2,496)
Net interest income (GAAP)(2)  502,583   470,610   464,194   469,974   462,358 
Fully taxable-equivalent adjustment  3,144   2,875   2,801   2,729   2,496 
Net interest income, fully taxable-equivalent (non-GAAP)(2) $505,727  $473,485  $466,995  $472,703  $464,854 

(1)   Interest income on tax-advantaged loans, trading securities and investment securities reflects a taxable-equivalent adjustment based on the marginal federal corporate tax rate in effect as of the applicable period.
(2)   See Table 18: Supplemental Non-GAAP Financial Measures/Ratios for additional information on this performance measure/ratio.

TABLE 6: QUARTERLY NET INTEREST MARGIN

  Net Interest Margin for three months ended,
  Sep 30,
2024		 Jun 30,
2024		 Mar 31,
2024		 Dec 31,
2023		 Sep 30,
2023
Yield earned on:          
Interest-bearing deposits with banks, securities purchased under resale agreements and cash equivalents 5.42% 5.35% 5.35% 5.27% 5.41%
Investment securities 3.38  3.45  3.38  3.42  3.08 
FHLB and FRB stock 8.22  7.89  7.81  7.35  7.68 
Liquidity management assets 3.94% 3.85% 3.74% 3.82% 3.65%
Other earning assets 6.38  6.23  5.25  5.92  6.47 
Mortgage loans held-for-sale 6.59  6.29  5.74  6.13  5.93 
Loans, net of unearned income 6.90  6.90  6.80  6.69  6.51 
Total earning assets 6.33% 6.34% 6.22% 6.13% 5.95%
           
Rate paid on:          
NOW and interest-bearing demand deposits 2.38% 2.64% 2.47% 2.58% 2.46%
Wealth management deposits 2.97  2.70  2.79  2.81  2.45 
Money market accounts 4.05  4.08  3.83  3.64  3.50 
Savings accounts 2.80  2.81  2.71  2.55  2.30 
Time deposits 4.58  4.54  4.34  4.09  3.72 
Interest-bearing deposits 3.72% 3.73% 3.48% 3.32% 3.12%
Federal Home Loan Bank advances 3.29  3.22  3.25  3.12  3.09 
Other borrowings 5.76  5.96  5.92  5.98  5.66 
Subordinated notes 4.95  5.08  5.04  5.00  4.98 
Junior subordinated debentures 7.88  7.91  7.94  7.96  7.74 
Total interest-bearing liabilities 3.75% 3.76% 3.55% 3.40% 3.21%
           
Interest rate spread(1)(2) 2.58% 2.58% 2.67% 2.73% 2.74%
Less: Fully taxable-equivalent adjustment (0.02) (0.02) (0.02) (0.02) (0.02)
Net free funds/contribution(3) 0.93  0.94  0.92  0.91  0.88 
Net interest margin (GAAP)(2) 3.49% 3.50% 3.57% 3.62% 3.60%
Fully taxable-equivalent adjustment 0.02  0.02  0.02  0.02  0.02 
Net interest margin, fully taxable-equivalent (non-GAAP)(2) 3.51% 3.52% 3.59% 3.64% 3.62%

(1)   Interest rate spread is the difference between the yield earned on earning assets and the rate paid on interest-bearing liabilities.
(2)   See Table 18: Supplemental Non-GAAP Financial Measures/Ratios for additional information on this performance measure/ratio.
(3)   Net free funds are the difference between total average earning assets and total average interest-bearing liabilities. The estimated contribution to net interest margin from net free funds is calculated using the rate paid for total interest-bearing liabilities.

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

 Average Balance
fornine months ended,		Interest
fornine months ended,		Yield/Rate
fornine months ended,
(Dollars in thousands)Sep 30,
2024		 Sep 30,
2023		Sep 30,
2024		 Sep 30,
2023		Sep 30,
2024		 Sep 30,
2023
Interest-bearing deposits with banks, securities purchased under resale agreements and cash equivalents(1)$1,720,387  $1,584,120 $69,310  $58,443 5.38% 4.93%
Investment securities(2) 8,276,711   7,637,612  210,834   172,025 3.40  3.01 
FHLB and FRB stock 249,375   219,442  14,903   11,120 7.98  6.77 
Liquidity management assets(3)(4)$10,246,473  $9,441,174 $295,047  $241,588 3.85% 3.42%
Other earning assets(3)(4)(5) 15,966   17,906  715   876 5.98  6.54 
Mortgage loans held-for-sale 338,061   299,426  15,813   12,473 6.25  5.57 
Loans, net of unearned income(3)(4)(6) 43,963,779   39,974,840  2,261,341   1,851,686 6.87  6.19 
Total earning assets(4)$54,564,279  $49,733,346 $2,572,916  $2,106,623 6.30% 5.66%
Allowance for loan and investment security losses (368,713)  (301,742)      
Cash and due from banks 450,899   476,490       
Other assets 3,367,882   3,120,105       
Total assets$58,014,347  $53,028,199       
          
NOW and interest-bearing demand deposits$5,279,697  $5,544,488 $98,586  $83,949 2.49% 2.02%
Wealth management deposits 1,467,886   1,739,427  30,913   30,705 2.81  2.36 
Money market accounts 15,398,045   13,480,887  460,466   299,649 3.99  2.97 
Savings accounts 5,923,205   5,172,174  123,026   73,203 2.77  1.89 
Time deposits 8,435,172   5,718,850  284,263   133,574 4.50  3.12 
Interest-bearing deposits$36,504,005  $31,655,826 $997,254  $621,080 3.65% 2.62%
Federal Home Loan Bank advances 3,002,228   2,313,571  73,099   53,970 3.25  3.12 
Other borrowings 612,627   628,915  26,961   25,723 5.88  5.47 
Subordinated notes 381,813   437,543  14,384   16,502 5.03  5.04 
Junior subordinated debentures 253,566   253,566  15,011   14,101 7.91  7.44 
Total interest-bearing liabilities$40,754,239  $35,289,421 $1,126,709  $731,376 3.69% 2.77%
Non-interest-bearing deposits 10,041,972   11,224,841       
Other liabilities 1,589,790   1,505,289       
Equity 5,628,346   5,008,648       
Total liabilities and shareholders’ equity$58,014,347  $53,028,199       
Interest rate spread(4)(7)      2.61% 2.89%
Less: Fully taxable-equivalent adjustment    (8,820)  (7,357)(0.02) (0.02)
Net free funds/contribution(8)$13,810,040  $14,443,925    0.93  0.81 
Net interest income/margin (GAAP)(4)   $1,437,387  $1,367,890 3.52% 3.68%
Fully taxable-equivalent adjustment    8,820   7,357 0.02  0.02 
Net interest income/margin, fully taxable-equivalent (non-GAAP)(4)   $1,446,207  $1,375,247 3.54% 3.70%

(1)   Includes interest-bearing deposits from banks and securities purchased under resale agreements with original maturities of greater than three months. Cash equivalents include federal funds sold and securities purchased under resale agreements with original maturities of three months or less.
(2)   Investment securities includes investment securities classified as available-for-sale and held-to-maturity, and equity securities with readily determinable fair values. Equity securities without readily determinable fair values are included within other assets.
(3)   Interest income on tax-advantaged loans, trading securities and investment securities reflects a taxable-equivalent adjustment based on the marginal federal corporate tax rate in effect as of the applicable period.
(4)   See Table 18: Supplemental Non-GAAP Financial Measures/Ratios for additional information on this performance measure/ratio.
(5)   Other earning assets include brokerage customer receivables and trading account securities.
(6)   Loans, net of unearned income, include non-accrual loans.
(7)   Interest rate spread is the difference between the yield earned on earning assets and the rate paid on interest-bearing liabilities.
(8)   Net free funds are the difference between total average earning assets and total average interest-bearing liabilities. The estimated contribution to net interest margin from net free funds is calculated using the rate paid for total interest-bearing liabilities. 

TABLE 8: INTEREST RATE SENSITIVITY

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

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

Static Shock Scenario +200 Basis Points +100 Basis Points -100 Basis Points -200 Basis Points
Sep 30, 2024 1.2% 1.1% 0.4% (0.9)%
Jun 30, 2024 1.5  1.0  0.6  (0.0)
Mar 31, 2024 1.9  1.4  1.5  1.6 
Dec 31, 2023 2.6  1.8  0.4  (0.7)
Sep 30, 2023 3.3  1.9  (2.0) (5.2)


Ramp Scenario+200 Basis Points +100 Basis Points -100 Basis Points -200 Basis Points
Sep 30, 20241.6% 1.2% 0.7% 0.5%
Jun 30, 20241.2  1.0  0.9  1.0 
Mar 31, 20240.8  0.6  1.3  2.0 
Dec 31, 20231.6  1.2  (0.3) (1.5)
Sep 30, 20231.7  1.2  (0.5) (2.4)

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

TABLE 9: MATURITIES AND SENSITIVITIES TO CHANGES IN INTEREST RATES

 Loans repricing or contractual maturity period
As of September 30, 2024One year or
less

 From one to
five years

 From five to fifteen years

 After fifteen years

 Total

(In thousands)    
Commercial         
Fixed rate$442,214  $3,352,273 $1,914,643 $23,532 $5,732,662
Variable rate 9,513,446   1,585  —  —  9,515,031
Total commercial$9,955,660  $3,353,858 $1,914,643 $23,532 $15,247,693
Commercial real estate         
Fixed rate$570,054  $2,866,473 $420,951 $55,521 $3,912,999
Variable rate 8,868,451   11,899  68  —  8,880,418
Total commercial real estate$9,438,505  $2,878,372 $421,019 $55,521 $12,793,417
Home equity         
Fixed rate$8,588  $1,593 $— $22 $10,203
Variable rate 416,840   —  —  —  416,840
Total home equity$425,428  $1,593 $— $22 $427,043
Residential real estate         
Fixed rate$7,088  $5,468 $75,934 $1,086,008 $1,174,498
Variable rate 92,075   512,374  1,609,091  —  2,213,540
Total residential real estate$99,163  $517,842 $1,685,025 $1,086,008 $3,388,038
Premium finance receivables - property & casualty         
Fixed rate$7,049,022  $82,659 $— $— $7,131,681
Variable rate —   —  —  —  —
Total premium finance receivables - property & casualty$7,049,022  $82,659 $— $— $7,131,681
Premium finance receivables - life insurance         
Fixed rate$160,090  $444,534 $4,000 $4,654 $613,278
Variable rate 7,383,621   —  —  —  7,383,621
Total premium finance receivables - life insurance$7,543,711  $444,534 $4,000 $4,654 $7,996,899
Consumer and other         
Fixed rate$17,226  $7,218 $841 $998 $26,283
Variable rate 56,393   —  —  —  56,393
Total consumer and other$73,619  $7,218 $841 $998 $82,676
          
Total per category         
Fixed rate$8,254,282  $6,760,218 $2,416,369 $1,170,735 $18,601,604
Variable rate 26,330,826   525,858  1,609,159  —  28,465,843
Total loans, net of unearned income$34,585,108  $7,286,076 $4,025,528 $1,170,735 $47,067,447
Less: Existing cash flow hedging derivatives (6,000,000)        
Less: Cash flow hedging derivatives effective in Q4 2024 (700,000)        
Total loans repricing or maturing in one year or less, adjusted for cash flow hedging activity$27,885,108         
          
Variable Rate Loan Pricing by Index:         
SOFR tenors        $17,155,288
12- month CMT         6,242,461
Prime         3,545,047
Fed Funds         951,119
Ameribor tenors         237,486
Other U.S. Treasury tenors         196,990
Other         137,452
Total variable rate        $28,465,843

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

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

Source: Bloomberg

As noted in the table on the previous page, the majority of the Company’s portfolio is tied to SOFR and CMT indices which, as shown in the table above, do not mirror the same changes as the Prime rate which has historically moved when the Federal Reserve raises or lowers interest rates. Specifically, the Company has variable rate loans of $13.7 billion tied to one-month SOFR and $6.2 billion tied to twelve-month CMT. The above chart shows:

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

TABLE 10: ALLOWANCE FOR CREDIT LOSSES

  Three Months EndedNine Months Ended
  Sep 30, Jun 30, Mar 31, Dec 31, Sep 30,Sep 30, Sep 30,
(Dollars in thousands) 2024 2024 2024
 2023
 2023
2024
 2023
Allowance for credit losses at beginning of period $437,560  $427,504  $427,612  $399,531  $387,786 $427,612  $357,936 
Cumulative effect adjustment from the adoption of ASU 2022-02  —   —   —   —   —  —   741 
Provision for credit losses - Other  6,787   40,061   21,673   42,908   19,923  68,521   71,482 
Provision for credit losses - Day 1 on non-PCD assets acquired during the period  15,547   —   —   —   —  15,547   — 
Initial allowance for credit losses recognized on PCD assets acquired during the period  3,004   —   —   —   —  3,004   — 
Other adjustments  30   (19)  (31)  62   (60) (20)  (15)
Charge-offs:             
Commercial  22,975   9,584   11,215   5,114   2,427  43,774   10,599 
Commercial real estate  95   15,526   5,469   5,386   1,713  21,090   9,842 
Home equity  —   —   74   —   227  74   227 
Residential real estate  —   23   38   114   78  61   78 
Premium finance receivables - property & casualty  7,790   9,486   6,938   6,706   5,830  24,214   14,978 
Premium finance receivables - life insurance  4   —   —   —   18  4   173 
Consumer and other  154   137   107   148   184  398   447 
Total charge-offs  31,018   34,756   23,841   17,468   10,477  89,615   36,344 
Recoveries:             
Commercial  649   950   479   592   1,162  2,078   2,059 
Commercial real estate  30   90   31   92   243  151   368 
Home equity  101   35   29   34   33  165   105 
Residential real estate  5   8   2   10   1  15   11 
Premium finance receivables - property & casualty  3,436   3,658   1,519   1,820   906  8,613   3,110 
Premium finance receivables - life insurance  41   5   8   7   —  54   9 
Consumer and other  21   24   23   24   14  68   69 
Total recoveries  4,283   4,770   2,091   2,579   2,359  11,144   5,731 
Net charge-offs  (26,735)  (29,986)  (21,750)  (14,889)  (8,118) (78,471)  (30,613)
Allowance for credit losses at period end $436,193  $437,560  $427,504  $427,612  $399,531 $436,193  $399,531 
              
Annualized net charge-offs (recoveries) by category as a percentage of its own respective category’s average:   
Commercial  0.61%  0.25%  0.33%  0.14%  0.04% 0.41%  0.09%
Commercial real estate  0.00   0.53   0.19   0.19   0.05  0.23   0.12 
Home equity  (0.10)  (0.04)  0.05   (0.04)  0.23  (0.03)  0.05 
Residential real estate  0.00   0.00   0.01   0.02   0.01  0.00   0.00 
Premium finance receivables - property & casualty  0.24   0.33   0.32   0.29   0.29  0.30   0.26 
Premium finance receivables - life insurance  0.00   (0.00)  (0.00)  (0.00)  0.00  (0.00)  0.00 
Consumer and other  0.63   0.56   0.42   0.58   0.65  0.54   0.60 
Total loans, net of unearned income  0.23%  0.28%  0.21%  0.14%  0.08% 0.24   0.10%
              
Loans at period end $47,067,447  $44,675,531  $43,230,706  $42,131,831  $41,446,032    
Allowance for loan losses as a percentage of loans at period end  0.77%  0.81%  0.81%  0.82%  0.76%   
Allowance for loan and unfunded lending-related commitment losses as a percentage of loans at period end  0.93   0.98   0.99   1.01   0.96    

TABLE 11: ALLOWANCE AND PROVISION FOR CREDIT LOSSES BY COMPONENT

  Three Months EndedNine Months Ended
  Sep 30, Jun 30, Mar 31, Dec 31, Sep 30,Sep 30, Sep 30,
(In thousands) 2024
 2024
 2024
 2023
 2023
2024
 2023
Provision for loan losses - Other $6,782  $45,111  $26,159  $44,023  $20,717 $78,052  $74,753 
Provision for credit losses - Day 1 on non-PCD assets acquired during the period  15,547   —   —   —   —  15,547   — 
Provision for unfunded lending-related commitments losses - Other  17   (5,212)  (4,468)  (1,081)  (769) (9,663)  (3,164)
Provision for held-to-maturity securities losses  (12)  162   (18)  (34)  (25) 132   (107)
Provision for credit losses $22,334  $40,061  $21,673  $42,908  $19,923 $84,068  $71,482 
              
Allowance for loan losses $360,279  $363,719  $348,612  $344,235  $315,039    
Allowance for unfunded lending-related commitments losses  75,435   73,350   78,563   83,030   84,111    
Allowance for loan losses and unfunded lending-related commitments losses  435,714   437,069   427,175   427,265   399,150    
Allowance for held-to-maturity securities losses  479   491   329   347   381    
Allowance for credit losses $436,193  $437,560  $427,504  $427,612  $399,531    

TABLE 12: ALLOWANCE BY LOAN PORTFOLIO

The table below summarizes the calculation of allowance for loan losses and allowance for unfunded lending-related commitments losses for the Company’s loan portfolios as well as core and niche portfolios, as of September 30, 2024, June 30, 2024 and March 31, 2024.

 As of Sep 30, 2024As of Jun 30, 2024As of Mar 31, 2024
(Dollars in thousands)Recorded
Investment		 Calculated
Allowance		 % of its
category’s balance		Recorded
Investment		 Calculated
Allowance		 % of its
category’s balance		Recorded
Investment		 Calculated
Allowance		 % of its
category’s balance
Commercial:               
Commercial, industrial and other$15,247,693 $171,598 1.13%$14,154,462 $181,991 1.29%$13,503,481 $166,518 1.23%
Commercial real estate:               
Construction and development 2,403,690  97,949 4.07  2,260,551  93,154 4.12  2,150,314  96,052 4.47 
Non-construction 10,389,727  133,195 1.28  9,686,646  130,574 1.35  9,483,123  130,000 1.37 
Home equity 427,043  8,823 2.07  356,313  7,242 2.03  340,349  7,191 2.11 
Residential real estate 3,388,038  9,745 0.29  3,067,335  8,773 0.29  2,890,266  13,701 0.47 
Premium finance receivables               
Property and casualty insurance 7,131,681  13,045 0.18  7,100,753  14,053 0.20  6,940,019  12,645 0.18 
Life insurance 7,996,899  698 0.01  7,962,115  693 0.01  7,872,033  685 0.01 
Consumer and other 82,676  661 0.80  87,356  589 0.67  51,121  383 0.75 
Total loans, net of unearned income$47,067,447 $435,714 0.93%$44,675,531 $437,069 0.98%$43,230,706 $427,175 0.99%
                
Total core loans(1)$28,363,712 $396,394 1.40%$26,259,487 $398,494 1.52%$25,402,132 $382,372 1.51%
Total niche loans(1) 18,703,735  39,320 0.21  18,416,044  38,575 0.21  17,828,574  44,803 0.25 
                

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

TABLE 13: LOAN PORTFOLIO AGING

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

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

TABLE 14: NON-PERFORMING ASSETS(1)

 Sep 30, Jun 30, Mar 31, Dec 31, Sep 30,
(Dollars in thousands)2024
 2024
 2024
 2023
 2023
Loans past due greater than 90 days and still accruing:         
Commercial$20  $304  $27  $98  $200 
Commercial real estate 225   —   —   —   1,092 
Home equity —   —   —   —   — 
Residential real estate —   —   —   —   — 
Premium finance receivables - property & casualty 18,235   22,427   25,877   20,135   16,253 
Premium finance receivables - life insurance —   —   —   —   10,679 
Consumer and other 148   121   47   54   27 
Total loans past due greater than 90 days and still accruing 18,628   22,852   25,951   20,287   28,251 
Non-accrual loans:         
Commercial 63,826   51,087   31,740   38,940   43,569 
Commercial real estate 42,071   48,289   39,262   35,459   17,043 
Home equity 1,122   1,100   838   1,341   1,363 
Residential real estate 17,959   18,198   17,901   15,391   16,103 
Premium finance receivables - property & casualty 36,079   32,722   32,648   27,590   26,756 
Premium finance receivables - life insurance —   —   —   —   — 
Consumer and other 2   3   19   22   16 
Total non-accrual loans 161,059   151,399   122,408   118,743   104,850 
Total non-performing loans:         
Commercial 63,846   51,391   31,767   39,038   43,769 
Commercial real estate 42,296   48,289   39,262   35,459   18,135 
Home equity 1,122   1,100   838   1,341   1,363 
Residential real estate 17,959   18,198   17,901   15,391   16,103 
Premium finance receivables - property & casualty 54,314   55,149   58,525   47,725   43,009 
Premium finance receivables - life insurance —   —   —   —   10,679 
Consumer and other 150   124   66   76   43 
Total non-performing loans$179,687  $174,251  $148,359  $139,030  $133,101 
Other real estate owned 13,682   19,731   14,538   13,309   14,060 
Total non-performing assets$193,369  $193,982  $162,897  $152,339  $147,161 
Total non-performing loans by category as a percent of its own respective category’s period-end balance:         
Commercial 0.42%  0.36%  0.24%  0.30%  0.34%
Commercial real estate 0.33   0.40   0.34   0.31   0.17 
Home equity 0.26   0.31   0.25   0.39   0.40 
Residential real estate 0.53   0.59   0.62   0.56   0.59 
Premium finance receivables - property & casualty 0.76   0.78   0.84   0.69   0.64 
Premium finance receivables - life insurance —   —   —   —   0.13 
Consumer and other 0.18   0.14   0.13   0.13   0.06 
Total loans, net of unearned income 0.38%  0.39%  0.34%  0.33%  0.32%
Total non-performing assets as a percentage of total assets 0.30%  0.32%  0.28%  0.27%  0.26%
Allowance for loan losses and unfunded lending-related commitments losses as a percentage of non-accrual loans 270.53%  288.69%  348.98%  359.82%  380.69%
          

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

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

 Three Months EndedNine Months Ended
 Sep 30, Jun 30, Mar 31, Dec 31, Sep 30,Sep 30, Sep 30,
(In thousands)2024
 2024
 2024
 2023
 2023
2024
 2023
             
Balance at beginning of period$174,251  $148,359  $139,030  $133,101  $108,712 $139,030  $100,697 
Additions from becoming non-performing in the respective period 42,335   54,376   23,142   59,010   18,666  96,711   64,367 
Additions from assets acquired in the respective period 189   —   —   —   —  189   — 
Return to performing status (362)  (912)  (490)  (24,469)  (1,702) (1,274)  (2,542)
Payments received (10,894)  (9,611)  (8,336)  (10,000)  (6,488) (20,505)  (24,063)
Transfer to OREO and other repossessed assets (3,680)  (6,945)  (1,381)  (2,623)  (2,671) (10,625)  (5,629)
Charge-offs, net (21,211)  (7,673)  (14,810)  (9,480)  (3,011) (28,884)  (6,866)
Net change for premium finance receivables (941)  (3,343)  11,204   (6,509)  19,595  (4,284)  7,137 
Balance at end of period$179,687  $174,251  $148,359  $139,030  $133,101 $170,358  $133,101 

Other Real Estate Owned

 Three Months Ended
 Sep 30, Jun 30, Mar 31, Dec 31, Sep 30,
(In thousands)2024
 2024
 2024
 2023
 2023
Balance at beginning of period$19,731  $14,538  $13,309  $14,060  $11,586 
Disposals/resolved (9,729)  (1,752)  —   (3,416)  (467)
Transfers in at fair value, less costs to sell 3,680   6,945   1,436   2,665   2,941 
Fair value adjustments —   —   (207)  —   — 
Balance at end of period$13,682  $19,731  $14,538  $13,309  $14,060 
          
 Period End
 Sep 30, Jun 30, Mar 31, Dec 31, Sep 30,
Balance by Property Type:2024
 2024
 2024
 2023
 2023
Residential real estate$—  $161  $1,146  $720  $441 
Commercial real estate 13,682   19,570   13,392   12,589   13,619 
Total$13,682  $19,731  $14,538  $13,309  $14,060 

TABLE 15: NON-INTEREST INCOME

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


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

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

TABLE 16: MORTGAGE BANKING

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

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

TABLE 17: NON-INTEREST EXPENSE

 Three Months Ended Q3 2024 compared to
Q2 2024

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


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

NM - Not meaningful.

TABLE 18: SUPPLEMENTAL NON-GAAP FINANCIAL MEASURES/RATIOS

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

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

 Three Months EndedNine Months Ended
 Sep 30, Jun 30, Mar 31, Dec 31, Sep 30,Sep 30, Sep 30,
(Dollars and shares in thousands)2024 2024 2024 2023 20232024 2023
Reconciliation of Non-GAAP Net Interest Margin and Efficiency Ratio:   
(A) Interest Income (GAAP)$908,604  $849,979  $805,513  $793,848  $762,400 $2,564,096  $2,099,266 
Taxable-equivalent adjustment:            
- Loans 2,474   2,305   2,246   2,150   1,923  7,025   5,677 
- Liquidity Management Assets 668   567   550   575   572  1,785   1,674 
- Other Earning Assets 2   3   5   4   1  10   6 
(B) Interest Income (non-GAAP)$911,748  $852,854  $808,314  $796,577  $764,896 $2,572,916  $2,106,623 
(C) Interest Expense (GAAP) 406,021   379,369   341,319   323,874   300,042  1,126,709   731,376 
(D) Net Interest Income (GAAP) (A minus C)$502,583  $470,610  $464,194  $469,974  $462,358 $1,437,387  $1,367,890 
(E) Net Interest Income (non-GAAP) (B minus C)$505,727  $473,485  $466,995  $472,703  $464,854 $1,446,207  $1,375,247 
Net interest margin (GAAP) 3.49%  3.50%  3.57%  3.62%  3.60% 3.52%  3.68%
Net interest margin, fully taxable-equivalent (non-GAAP) 3.51   3.52   3.59   3.64   3.62  3.54   3.70 
(F) Non-interest income$113,147  $121,147  $140,580  $100,829  $112,478 $374,874  $333,277 
(G) (Losses) gains on investment securities, net 3,189   (4,282)  1,326   2,484   (2,357) 233   (959)
(H) Non-interest expense 360,687   340,353   333,145   362,652   330,055  1,034,185   949,847 
Efficiency ratio (H/(D+F-G)) 58.88%  57.10%  55.21%  63.81%  57.18% 57.07%  55.80%
Efficiency ratio (non-GAAP) (H/(E+F-G)) 58.58   56.83   54.95   63.51   56.94  56.80   55.56 
 Three Months EndedNine Months Ended
 Sep 30, Jun 30, Mar 31, Dec 31, Sep 30,Sep 30, Sep 30,
(Dollars and shares in thousands)2024
 2024
 2024
 2023
 2023
2024
 2023
Reconciliation of Non-GAAP Tangible Common Equity Ratio:   
Total shareholders’ equity (GAAP)$6,399,714  $5,536,628  $5,436,400  $5,399,526  $5,015,613    
Less: Non-convertible preferred stock (GAAP) (412,500)  (412,500)  (412,500)  (412,500)  (412,500)   
Less: Intangible assets (GAAP) (924,646)  (676,562)  (677,911)  (679,561)  (680,353)   
(I) Total tangible common shareholders’ equity (non-GAAP)$5,062,568  $4,447,566  $4,345,989  $4,307,465  $3,922,760    
(J) Total assets (GAAP)$63,788,424  $59,781,516  $57,576,933  $56,259,934  $55,555,246    
Less: Intangible assets (GAAP) (924,646)  (676,562)  (677,911)  (679,561)  (680,353)   
(K) Total tangible assets (non-GAAP)$62,863,778  $59,104,954  $56,899,022  $55,580,373  $54,874,893    
Common equity to assets ratio (GAAP) (L/J) 9.4%  8.6%  8.7%  8.9%  8.3%   
Tangible common equity ratio (non-GAAP) (I/K) 8.1   7.5   7.6   7.7   7.1    


Reconciliation of Non-GAAP Tangible Book Value per Common Share:   
Total shareholders’ equity$6,399,714  $5,536,628  $5,436,400  $5,399,526  $5,015,613    
Less: Preferred stock (412,500)  (412,500)  (412,500)  (412,500)  (412,500)   
(L) Total common equity$5,987,214  $5,124,128  $5,023,900  $4,987,026  $4,603,113    
(M) Actual common shares outstanding 66,482   61,760   61,737   61,244   61,222    
Book value per common share (L/M)$90.06  $82.97  $81.38  $81.43  $75.19    
Tangible book value per common share (non-GAAP) (I/M) 76.15   72.01   70.40   70.33   64.07    
             
Reconciliation of Non-GAAP Return on Average Tangible Common Equity:   
(N) Net income applicable to common shares$163,010  $145,397  $180,303  $116,489  $157,207 $488,710  $478,173 
Add: Intangible asset amortization 4,042   1,122   1,158   1,356   1,408  6,322   4,142 
Less: Tax effect of intangible asset amortization (1,087)  (311)  (291)  (343)  (380) (1,682)  (1,102)
After-tax intangible asset amortization$2,955  $811  $867  $1,013  $1,028 $4,640  $3,040 
(O) Tangible net income applicable to common shares (non-GAAP)$165,965  $146,208  $181,170  $117,502  $158,235 $493,350  $481,213 
Total average shareholders’ equity$5,990,429  $5,450,173  $5,440,457  $5,066,196  $5,083,883 $5,628,346  $5,008,648 
Less: Average preferred stock (412,500)  (412,500)  (412,500)  (412,500)  (412,500) (412,500)  (412,500)
(P) Total average common shareholders’ equity$5,577,929  $5,037,673  $5,027,957  $4,653,696  $4,671,383 $5,215,846  $4,596,148 
Less: Average intangible assets (833,574)  (677,207)  (678,731)  (679,812)  (681,520) (730,216)  (679,799)
(Q) Total average tangible common shareholders’ equity (non-GAAP)$4,744,355  $4,360,466  $4,349,226  $3,973,884  $3,989,863 $4,485,630  $3,916,349 
Return on average common equity, annualized (N/P) 11.63%  11.61%  14.42%  9.93%  13.35% 12.52%  13.91%
Return on average tangible common equity, annualized (non-GAAP) (O/Q) 13.92   13.49   16.75   11.73   15.73  14.69   16.43 
             
Reconciliation of Non-GAAP Pre-Tax, Pre-Provision Income:     
Income before taxes$232,709  $211,343  $249,956  $165,243  $224,858 $694,008  $679,838 
Add: Provision for credit losses 22,334   40,061   21,673   42,908   19,923  84,068   71,482 
Pre-tax income, excluding provision for credit losses (non-GAAP)$255,043  $251,404  $271,629  $208,151  $244,781 $778,076  $751,320 

WINTRUST SUBSIDIARIES AND LOCATIONS

Wintrust is a financial holding company whose common stock is traded on the Nasdaq Global Select Market (Nasdaq: WTFC). Its 16 community bank subsidiaries are: Lake Forest Bank & Trust Company, N.A., Hinsdale Bank & Trust Company, N.A., Wintrust Bank, N.A., in Chicago, Libertyville Bank & Trust Company, N.A., Barrington Bank & Trust Company, N.A., Crystal Lake Bank & Trust Company, N.A., Northbrook Bank & Trust Company, N.A., Schaumburg Bank & Trust Company, N.A., Village Bank & Trust, N.A., in Arlington Heights, Beverly Bank & Trust Company, N.A. in Chicago, Wheaton Bank & Trust Company, N.A., State Bank of The Lakes, N.A., in Antioch, Old Plank Trail Community Bank, N.A., in New Lenox, St. Charles Bank & Trust Company, N.A., Town Bank, N.A., in Hartland, Wisconsin and Macatawa Bank in Holland, Michigan.

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

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

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

FORWARD-LOOKING STATEMENTS

This document contains forward-looking statements within the meaning of federal securities laws. Forward-looking information can be identified through the use of words such as “intend,” “plan,” “project,” “expect,” “anticipate,” “believe,” “estimate,” “contemplate,” “possible,” “will,” “may,” “should,” “would” and “could.” Forward-looking statements and information are not historical facts, are premised on many factors and assumptions, and represent only management’s expectations, estimates and projections regarding future events. Similarly, these statements are not guarantees of future performance and involve certain risks and uncertainties that are difficult to predict, and which may include, but are not limited to, those listed below and the Risk Factors discussed under Item 1A of the Company’s 2023 Annual Report on Form 10-K and in any of the Company’s subsequent SEC filings. The Company intends such forward-looking statements to be covered by the safe harbor provisions for forward-looking statements contained in the Private Securities Litigation Reform Act of 1995, and is including this statement for purposes of invoking these safe harbor provisions. Such forward-looking statements may be deemed to include, among other things, statements relating to the Company’s future financial performance, the performance of its loan portfolio, the expected amount of future credit reserves and charge-offs, delinquency trends, growth plans, regulatory developments, securities that the Company may offer from time to time, plans to form additional de novo banks or branch offices, and management’s long-term performance goals, as well as statements relating to the anticipated effects on the Company’s financial condition and results of operations from expected developments or events, the Company’s business and growth strategies, including future acquisitions of banks, specialty finance or wealth management businesses, internal growth and plans to form additional de novo banks or branch offices. Actual results could differ materially from those addressed in the forward-looking statements as a result of numerous factors, including the following:

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

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

CONFERENCE CALL, WEBCAST AND REPLAY

The Company will hold a conference call on Tuesday, October 22, 2024 at 10:00 a.m. (CDT) regarding third quarter and year-to-date 2024 earnings results. Individuals interested in participating in the call by addressing questions to management should register for the call to receive the dial-in numbers and unique PIN at the Conference Call Link included within the Company’s press release dated September 30, 2024 available at the Investor Relations, Investor News and Events, Press Releases link on its website at https://www.wintrust.com. A separate simultaneous audio-only webcast link is included within the press release referenced above. Registration for and a replay of the audio-only webcast with an accompanying slide presentation will be available at https://www.wintrust.com, Investor Relations, Investor News and Events, Presentations & Conference Calls. The text of the third quarter and year-to-date 2024 earnings press release will also be available on the home page of the Company’s website at https://www.wintrust.com and at the Investor Relations, Investor News and Events, Press Releases link on its website.

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


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10/21/2024 17:30 -0400

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