Wintrust Financial Corporation Reports Record Full Year Net Income

ROSEMONT, Ill., Jan. 17, 2024 (GLOBE NEWSWIRE) -- Wintrust Financial Corporation (“Wintrust”, “the Company”, “we” or “our”) (Nasdaq: WTFC) announced record annual net income of $622.6 million or $9.58 per diluted common share for the year ended December 31, 2023 as compared to net income of $509.7 million or $8.02 per diluted common share for the same period of 2022, an increase in diluted earnings per common share of 19%. Pre-tax, pre-provision income (non-GAAP) totaled a record $959.5 million for the year ended December 31, 2023, up 23% as compared to $779.1 million in the same period of 2022.

The Company recorded quarterly net income of $123.5 million or $1.87 per diluted common share for the fourth quarter of 2023 as compared to $164.2 million or $2.53 per diluted common share for the third quarter of 2023. Pre-tax, pre-provision income (non-GAAP) totaled $208.2 million as compared to $244.8 million for the third quarter of 2023. During the fourth quarter of 2023, the Company recognized an accrual of $34.4 million for the estimated amount owed as a result of the FDIC special assessment on uninsured deposits in response to certain bank failures occurring earlier in 2023 as well as a $9.7 million unfavorable net valuation adjustment from certain mortgage-related assets held at fair value.

Timothy S. Crane, President and Chief Executive Officer, commented, “We are very pleased with our strong 2023 results, including record net income for the full year 2023. Throughout the year, we continued to leverage our position in the markets we serve to sustain steady growth in loans and deposits. Wintrust finished the year with great momentum as our fourth quarter results were highlighted by record net interest income, increased net interest margin and growth in our loan portfolio while continuing to exhibit low levels of net charge-offs.”

Additionally, Mr. Crane noted, “Given current economic conditions, we continue to feel good about the position of our businesses throughout our footprint. Opportunities in our markets exist to grow earning assets and deposits. Our net interest margin for the fourth quarter continued to stay within our expected range, increasing by two basis points. In the current interest rate environment, we still expect to maintain our net interest margin within a narrow range around current levels during the first quarter of 2024 and stay relatively stable for the remainder of 2024, depending on the pace and magnitude of potential interest rate changes. We believe this stability in net interest margin along with steady growth will drive strong financial performance in future quarters.”

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

• Net interest margin increased by two basis points to 3.62% (3.64% on a fully taxable-equivalent basis, non-GAAP) during the fourth quarter of 2023.
  • The higher net interest margin as well as growth in earning assets drove record quarterly net interest income of $470.0 million, increasing $7.6 million.
• Total loans increased by $686 million, or 7% annualized.
• Total deposits increased by $404 million, or 4% annualized.
• Total assets increased by $705 million, or 5% annualized.
• Impacts compared to the third quarter of 2023 from changes in the interest rate environment during the fourth quarter of 2023 included the following:
  • Non-interest income was impacted by a more unfavorable net valuation adjustment from certain mortgage-related assets held at fair value. Unfavorable net valuation adjustments totaled $9.7 million in the fourth quarter of 2023 compared to unfavorable net valuation adjustments of $2.3 million in the third quarter of 2023.
  • Book value per common share increased $6.24 to $81.43 and tangible book value per common share (non-GAAP) increased $6.26 to $70.33, primarily the result of favorable changes in the fair values of certain assets and liabilities, and the resulting benefit to accumulated other comprehensive income (loss).
• Non-interest expense was negatively impacted by an accrual of $34.4 million for the estimated amount owed as a result of the FDIC special assessment on uninsured deposits in response to certain bank failures occurring earlier in 2023.
  

Mr. Crane noted, “Our higher net interest margin coupled with growth in earning assets resulted in record net interest income in the fourth quarter of 2023 as we grew our net interest income by $7.6 million. Our net interest margin increased by two basis points from the third quarter with deposit pricing pressures continuing to moderate in the fourth quarter of 2023. We expect this moderation to continue into the first quarter of 2024. Further, we continued to generate strong loan growth during the quarter, with total loans increasing $686 million, or 7% on an annualized basis. Loan growth was driven primarily by draws on existing commercial real estate loan facilities as well as growth in our property and casualty premium finance portfolio due to favorable market conditions and seasonally strong originations in the fourth quarter of the year. Loan growth in the fourth quarter of 2023 was primarily funded by continued deposit growth during the period, as deposits increased by approximately $404 million, or 4% on an annualized basis. We believe leveraging our customer relationships, market positioning, diversified products and competitive rates will continue to generate deposits to fuel balance sheet growth. Non-interest bearing deposits increased slightly during the fourth quarter and remained stable as a percentage of total deposits at 23% at December 31, 2023. The combination of balance sheet growth and a stable net interest margin is expected to result in continued growth of our net interest income.”

Commenting on credit quality, Mr. Crane stated, “Credit metrics remained strong. Net charge-offs totaled $14.9 million or 14 basis points of average total loans on an annualized basis in the fourth quarter of 2023 as compared to $8.1 million or eight basis points of average total loans on an annualized basis in the third quarter of 2023. Non-performing loans totaled $139.0 million, or 0.33% of total loans, at the end of the fourth quarter of 2023 compared to $133.1 million, or 0.32% of total loans, at the end of the third quarter of 2023. Though these credit metrics increased during the period, net charge-offs as a percentage of average total loans and non-performing loans as a percentage of total loans remained at historically low levels in the fourth quarter of 2023. The allowance for credit losses on our core loan portfolio as of December 31, 2023 was approximately 1.55% of the outstanding balance (see Table 12 for additional information). We believe that the Company’s reserves remain appropriate and we remain diligent in our review of credit.”

Mr. Crane concluded, “We enter 2024 with significant momentum. Total loans as of December 31, 2023 were $770 million higher than average total loans in the fourth quarter of 2023, which, coupled with a stable net interest margin, is expected to help contribute to our momentum into the first quarter of 2024. We continue to win business and expand our franchise, keeping us well-positioned in the markets we serve.”

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

Graphs available at the following link: 
http://ml.globenewswire.com/Resource/Download/ed04ab1f-56be-4565-9426-2e50bbf63d3d

SUMMARY OF RESULTS:

BALANCE SHEET

Total assets increased $704.7 million in the fourth quarter of 2023 as compared to the third quarter of 2023. Total loans increased by $685.8 million as compared to the third quarter of 2023. The increase in loans was primarily the result of draws on existing commercial real estate loan facilities as well as growth in our property and casualty premium finance portfolio due to favorable market conditions and seasonally strong originations in the fourth quarter of the year.

Total liabilities increased by $320.8 million in the fourth quarter of 2023 as compared to the third quarter of 2023 primarily due to a $404.5 million increase in total deposits. Non-interest bearing deposits as a percentage of total deposits was 23% at both December 31, 2023 and September 30, 2023. The Company's loans to deposits ratio ended the quarter at 92.8%.

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 fourth quarter of 2023, net interest income totaled $470.0 million, an increase of $7.6 million as compared to the third quarter of 2023. The $7.6 million increase in net interest income in the fourth quarter of 2023 compared to the third quarter of 2023 was primarily due to a $509.1 million increase in average earning assets and a two basis point increase in net interest margin.

Net interest margin was 3.62% (3.64% on a fully taxable-equivalent basis, non-GAAP) during the fourth quarter of 2023 compared to 3.60% (3.62% on a fully taxable-equivalent basis, non-GAAP) during the third quarter of 2023. The net interest margin increase as compared to the third quarter of 2023 was primarily due to a 18 basis point increase in yield on earning assets and a three basis point increase in the net free funds contribution. This increase was partially offset by a 19 basis point increase in the rate paid on interest-bearing liabilities. The 18 basis point increase in the yield on earning assets in the fourth quarter of 2023 as compared to the third quarter of 2023 was primarily due to an 18 basis point expansion on loan yields and 17 basis point increase in liquidity management asset yield. The 19 basis point increase on the rate paid on interest-bearing liabilities in the fourth quarter of 2023 as compared to the third quarter of 2023 was primarily due to a 20 basis point increase in the 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 $427.6 million as of December 31, 2023, an increase of $28.1 million as compared to $399.5 million as of September 30, 2023. A provision for credit losses totaling $42.9 million was recorded for the fourth quarter of 2023 as compared to $19.9 million recorded in the third quarter of 2023. The increase in the allowance for credit losses in the fourth quarter of 2023 was primarily the result of moderate forecasted deterioration in macroeconomic factors and portfolio changes during the period. 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 December 31, 2023, September 30, 2023, and June 30, 2023 is shown on Table 12 of this report.

Net charge-offs totaled $14.9 million in the fourth quarter of 2023, as compared to $8.1 million of net charge-offs in the third quarter of 2023. The increase in net charge-offs during the fourth quarter of 2023 was primarily the result of increased net charge-offs within the commercial and commercial real estate portfolios. Net charge-offs as a percentage of average total loans were 14 basis points in the fourth quarter of 2023 on an annualized basis compared to eight basis points on an annualized basis in the third quarter of 2023. For more information regarding net charge-offs, see Table 10 in this report.

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

Non-performing assets totaled $152.3 million and comprised 0.27% of total assets as of December 31, 2023, as compared to $147.2 million as of September 30, 2023. Non-performing loans totaled $139.0 million, or 0.33% of total loans, at December 31, 2023. The increase in the fourth quarter was primarily due to an increase in certain credits within the commercial real estate portfolio becoming nonaccrual. For more information regarding non-performing assets, see Table 14 in this report.

Though these credit metrics increased during the period, net charge-offs as a percentage of average total loans and non-performing loans as a percentage of total loans remained at historically low levels in the fourth quarter of 2023.

NON-INTEREST INCOME

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

Mortgage banking revenue decreased by $20.0 million in the fourth quarter of 2023 as compared to the third quarter of 2023 primarily due to a $18.3 million unfavorable valuation adjustment to the fair value of mortgage servicing rights, net of servicing hedge, compared to the third quarter of 2023 as well as $7.0 million lower in production revenue. 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 $9.1 million when compared to the third quarter of 2023. The Company monitors the relationship of these assets and seeks to minimize the earnings impact of fair value changes.

The Company recognized $2.5 million in net gains on investment securities in the fourth quarter of 2023 as compared to $2.4 million in net losses in the third quarter of 2023. The change from period to period was primarily the result of unrealized gains and losses on the Company’s equity investment securities with a readily determinable fair value.

Fluctuations in trading gains and losses in the fourth quarter of 2023 compared to the third quarter of 2023 were primarily the result of fair value adjustments related to interest rate derivatives not designated as hedges.

Other income increased by $3.9 million in the fourth quarter of 2023 compared to the third quarter of 2023 primarily due to a favorable adjustment to the Company’s held-for-investment portfolio of early buy-out exercised loans guaranteed by U.S. government agencies, which are held at fair value, of $1.9 million when compared to the third quarter of 2023, as well as higher swap fees, higher BOLI income and favorable foreign currency remeasurement adjustments.

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

NON-INTEREST EXPENSE

Salaries and employee benefits expense increased by $1.6 million in the fourth quarter of 2023 as compared to the third quarter of 2023. The $1.6 million increase is primarily related to increased employee insurance costs and other benefits during the fourth quarter of 2023.

Software and equipment expense increased $1.8 million primarily as a result of increased software licensing expenses as the Company invests in enhancements to the digital customer experience, upgrades to infrastructure and enhancements to information security capabilities.

Operating lease equipment cost decreased $1.3 million in the fourth quarter of 2023 as compared to the third quarter of 2023 primarily due to the impairment of certain assets during the third quarter of 2023.

Occupancy expenses decreased $3.2 million in the fourth quarter of 2023 as compared to the third quarter of 2023 primarily due to the impairment in the third quarter of 2023 of two Company-owned buildings that are no longer being used.

Data processing expense decreased $1.9 million in the fourth quarter of 2023 as compared to the third quarter of 2023 primarily due to the termination in the third quarter of 2023 of a duplicate service contract related to the acquisition of a wealth management business in 2023.

Advertising and marketing expenses in the fourth quarter of 2023 totaled $17.2 million, which is a $1.0 million decrease as compared to the third quarter of 2023 primarily due to a decrease in sports sponsorships.

FDIC insurance increased $33.9 million in the fourth quarter of 2023 as compared to the third quarter of 2023. This was primarily the result of an accrual recognized for the estimated amount owed as a result of the FDIC special assessment on uninsured deposits in response to certain bank failures occurring earlier in 2023.

The Company recorded net OREO income of $1.6 million in the fourth quarter of 2023, compared to net OREO expense of $120,000 in the third quarter of 2023. The net OREO income in the fourth quarter of 2023 was the result of realized gains on sales of OREO. OREO expenses also include all costs associated with obtaining, maintaining and selling other real estate owned properties as well as valuation adjustments.

Miscellaneous expense in the fourth quarter of 2023 increased by $3.6 million as compared to the third quarter of 2023. Miscellaneous expense includes ATM expenses, correspondent bank charges, directors’ fees, telephone, postage, corporate insurance, dues and subscriptions, problem loan expenses and other miscellaneous operational losses and costs.

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

INCOME TAXES

The Company recorded income tax expense of $41.8 million in the fourth quarter of 2023 compared to $60.7 million in the third quarter of 2023. The effective tax rates were 25.27% in the fourth quarter of 2023 compared to 26.98% in the third quarter of 2023. The effective tax rates were partially impacted by an overall lower level of pre-tax income in the comparable periods, primarily due to the accrual of $34.4 million for the estimated amount owed as a result of the FDIC special assessment on uninsured deposits and an overall lower level of provision for state income taxes.

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 fourth quarter of 2023, this unit expanded its commercial, commercial real estate and residential real estate loan portfolios, while increasing net interest income.

Mortgage banking revenue was $7.4 million for the fourth quarter of 2023, a decrease of $20.0 million as compared to the third quarter of 2023, primarily due to a $18.3 million unfavorable valuation adjustment to the fair value of mortgage servicing rights, net of servicing hedge, compared to the third quarter of 2023 as well as $7.0 million lower in production revenue. 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 $9.1 million when compared to the third quarter of 2023. Service charges on deposit accounts totaled $14.5 million in the fourth quarter of 2023, which was relatively stable compared to the third quarter of 2023. The Company’s gross commercial and commercial real estate loan pipelines remained solid as of December 31, 2023 indicating momentum for expected continued loan growth in the first 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 $4.6 billion during the fourth quarter of 2023 and average balances decreased by $74.2 million as compared to the third quarter of 2023. The Company’s leasing portfolio balance increased in the fourth quarter of 2023, with its portfolio of assets, including capital leases, loans and equipment on operating leases, totaling $3.4 billion as of December 31, 2023 as compared to $3.3 billion as of September 30, 2023. Revenues from the Company’s out-sourced administrative services business were $1.3 million in the fourth quarter of 2023, which was relatively stable compared to the third quarter of 2023.

Wealth Management

Through four separate subsidiaries within its wealth management unit, the Company offers a full range of wealth management services, including trust and investment services, tax-deferred like-kind exchange services, asset management, securities brokerage services and 401(k) and retirement plan services. Wealth management revenue totaled $33.3 million in the fourth quarter of 2023, which was relatively stable compared to the third quarter of 2023. At December 31, 2023, the Company’s wealth management subsidiaries had approximately $47.1 billion of assets under administration, which included $8.7 billion of assets owned by the Company and its subsidiary banks, representing an increase from the $44.7 billion of assets under administration at September 30, 2023.

ITEM IMPACTING COMPARATIVE FINANCIAL RESULTS

Business Combination

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

WINTRUST FINANCIAL CORPORATION 
Key Operating Measures

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

													% or (1) basis point  (bp) change from 3rd Quarter 2023				% or basis point  (bp) change from 4th Quarter 2022
		Three Months Ended
(Dollars in thousands, except per share data)		Dec 31, 2023				Sep 30, 2023				Dec 31, 2022
Net income		$	123,480			$	164,198			$	144,817		(25	)	%		(15	)	%
Pre-tax income, excluding provision for credit losses (non-GAAP)(2)			208,151				244,781				242,819		(15	)			(14	)
Net income per common share – Diluted			1.87				2.53				2.23		(26	)			(16	)
Cash dividends declared per common share			0.40				0.40				0.34		—				18
Net revenue(3)			570,803				574,836				550,655		(1	)			4
Net interest income			469,974				462,358				456,816		2				3
Net interest margin			3.62	%			3.60	%			3.71	%	2		bps		(9	)	bps
Net interest margin – fully taxable-equivalent (non-GAAP)(2)			3.64				3.62				3.73		2				(9	)
Net overhead ratio(4)			1.89				1.59				1.63		30				26
Return on average assets			0.89				1.20				1.10		(31	)			(21	)
Return on average common equity			9.93				13.35				12.72		(342	)			(279	)
Return on average tangible common equity (non-GAAP)(2)			11.73				15.73				15.21		(400	)			(348	)
At end of period
Total assets		$	56,259,934			$	55,555,246			$	52,949,649		5		%		6		%
Total loans(5)			42,131,831				41,446,032				39,196,485		7				7
Total deposits			45,397,170				44,992,686				42,902,544		4				6
Total shareholders’ equity			5,399,526				5,015,613				4,796,838		30				13

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

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

WINTRUST FINANCIAL CORPORATION
Selected Financial Highlights

		Three Months Ended																			Years Ended
(Dollars in thousands, except per share data)		Dec 31, 2023				Sep 30, 2023				Jun 30, 2023				Mar 31, 2023				Dec 31, 2022			Dec 31, 2023				Dec 31, 2022
Selected Financial Condition Data (at end of period):
Total assets		$	56,259,934			$	55,555,246			$	54,286,176			$	52,873,511			$	52,949,649
Total loans(1)			42,131,831				41,446,032				41,023,408				39,565,471				39,196,485
Total deposits			45,397,170				44,992,686				44,038,707				42,718,211				42,902,544
Total shareholders’ equity			5,399,526				5,015,613				5,041,912				5,015,506				4,796,838
Selected Statements of Income Data:
Net interest income		$	469,974			$	462,358			$	447,537			$	457,995			$	456,816		$	1,837,864			$	1,495,362
Net revenue(2)			570,803				574,836				560,567				565,764				550,655			2,271,970				1,956,415
Net income			123,480				164,198				154,750				180,198				144,817			622,626				509,682
Pre-tax income, excluding provision for credit losses (non-GAAP)(3)			208,151				244,781				239,944				266,595				242,819			959,471				779,144
Net income per common share – Basic			1.90				2.57				2.41				2.84				2.27			9.72				8.14
Net income per common share – Diluted			1.87				2.53				2.38				2.80				2.23			9.58				8.02
Cash dividends declared per common share			0.40				0.40				0.40				0.40				0.34			1.60				1.36
Selected Financial Ratios and Other Data:
Performance Ratios:
Net interest margin			3.62	%			3.60	%			3.64	%			3.81	%			3.71	%		3.66	%			3.15	%
Net interest margin – fully taxable-equivalent (non-GAAP)(3)			3.64				3.62				3.66				3.83				3.73			3.68				3.17
Non-interest income to average assets			0.73				0.82				0.86				0.84				0.71			0.81				0.91
Non-interest expense to average assets			2.62				2.41				2.44				2.33				2.34			2.45				2.33
Net overhead ratio(4)			1.89				1.59				1.58				1.49				1.63			1.64				1.42
Return on average assets			0.89				1.20				1.18				1.40				1.10			1.16				1.01
Return on average common equity			9.93				13.35				12.79				15.67				12.72			12.90				11.41
Return on average tangible common equity (non-GAAP)(3)			11.73				15.73				15.12				18.55				15.21			15.23				13.73
Average total assets		$	55,017,075			$	54,381,981			$	52,601,953			$	52,075,318			$	52,087,618		$	53,529,506			$	50,424,319
Average total shareholders’ equity			5,066,196				5,083,883				5,044,718				4,895,271				4,710,856			5,023,153				4,634,224
Average loans to average deposits ratio			92.9	%			92.4	%			94.3	%			93.0	%			90.5	%		93.1	%			87.5	%
Period-end loans to deposits ratio			92.8				92.1				93.2				92.6				91.4
Common Share Data at end of period:
Market price per common share		$	92.75			$	75.50			$	72.62			$	72.95			$	84.52
Book value per common share			81.43				75.19				75.65				75.24				72.12
Tangible book value per common share (non-GAAP)(3)			70.33				64.07				64.50				64.22				61.00
Common shares outstanding			61,243,626				61,222,058				61,197,676				61,176,415				60,794,008
Other Data at end of period:
Common equity to assets ratio			8.9	%			8.3	%			8.5	%			8.7	%			8.3	%
Tangible common equity ratio (non-GAAP)(3)			7.7				7.1				7.4				7.5				7.1
Tier 1 leverage ratio(5)			9.3				9.2				9.3				9.1				8.8
Risk-based capital ratios:
Tier 1 capital ratio(5)			10.2				10.2				10.1				10.1				10.0
Common equity tier 1 capital ratio(5)			9.4				9.3				9.3				9.2				9.1
Total capital ratio(5)			12.1				12.0				12.0				12.1				11.9
Allowance for credit losses(6)		$	427,612			$	399,531			$	387,786			$	376,261			$	357,936
Allowance for loan and unfunded lending-related commitment losses to total loans			1.01	%			0.96	%			0.94	%			0.95	%			0.91	%
Number of:
Bank subsidiaries			15				15				15				15				15
Banking offices			174				174				175				174				174

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

WINTRUST FINANCIAL CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CONDITION

		(Unaudited)				(Unaudited)				(Unaudited)				(Unaudited)
		Dec 31,				Sep 30,				Jun 30,				Mar 31,				Dec 31,
(In thousands)			2023				2023				2023				2023				2022
Assets
Cash and due from banks		$	423,404			$	418,088			$	513,858			$	445,928			$	490,908
Federal funds sold and securities purchased under resale agreements			60				60				59				58				58
Interest-bearing deposits with banks			2,084,323				2,448,570				2,163,708				1,563,578				1,988,719
Available-for-sale securities, at fair value			3,502,915				3,611,835				3,492,481				3,259,845				3,243,017
Held-to-maturity securities, at amortized cost			3,856,916				3,909,150				3,564,473				3,606,391				3,640,567
Trading account securities			4,707				1,663				3,027				102				1,127
Equity securities with readily determinable fair value			139,268				134,310				116,275				111,943				110,365
Federal Home Loan Bank and Federal Reserve Bank stock			205,003				204,040				195,117				244,957				224,759
Brokerage customer receivables			10,592				14,042				15,722				16,042				16,387
Mortgage loans held-for-sale, at fair value			292,722				304,808				338,728				302,493				299,935
Loans, net of unearned income			42,131,831				41,446,032				41,023,408				39,565,471				39,196,485
Allowance for loan losses			(344,235	)			(315,039	)			(302,499	)			(287,972	)			(270,173	)
Net loans			41,787,596				41,130,993				40,720,909				39,277,499				38,926,312
Premises, software and equipment, net			748,966				747,501				749,393				760,283				764,798
Lease investments, net			281,280				275,152				274,351				256,301				253,928
Accrued interest receivable and other assets			1,551,899				1,674,681				1,455,748				1,413,795				1,391,342
Trade date securities receivable			690,722				—				—				939,758				921,717
Goodwill			656,672				656,109				656,674				653,587				653,524
Other acquisition-related intangible assets			22,889				24,244				25,653				20,951				22,186
Total assets		$	56,259,934			$	55,555,246			$	54,286,176			$	52,873,511			$	52,949,649
Liabilities and Shareholders’ Equity
Deposits:
Non-interest-bearing		$	10,420,401			$	10,347,006			$	10,604,915			$	11,236,083			$	12,668,160
Interest-bearing			34,976,769				34,645,680				33,433,792				31,482,128				30,234,384
Total deposits			45,397,170				44,992,686				44,038,707				42,718,211				42,902,544
Federal Home Loan Bank advances			2,326,071				2,326,071				2,026,071				2,316,071				2,316,071
Other borrowings			645,813				643,999				665,219				583,548				596,614
Subordinated notes			437,866				437,731				437,628				437,493				437,392
Junior subordinated debentures			253,566				253,566				253,566				253,566				253,566
Accrued interest payable and other liabilities			1,799,922				1,885,580				1,823,073				1,549,116				1,646,624
Total liabilities			50,860,408				50,539,633				49,244,264				47,858,005				48,152,811
Shareholders’ Equity:
Preferred stock			412,500				412,500				412,500				412,500				412,500
Common stock			61,269				61,244				61,219				61,198				60,797
Surplus			1,943,806				1,933,226				1,923,623				1,913,947				1,902,474
Treasury stock			(2,217	)			(1,966	)			(1,966	)			(1,966	)			(304	)
Retained earnings			3,345,399				3,253,332				3,120,626				2,997,263				2,849,007
Accumulated other comprehensive loss			(361,231	)			(642,723	)			(474,090	)			(367,436	)			(427,636	)
Total shareholders’ equity			5,399,526				5,015,613				5,041,912				5,015,506				4,796,838
Total liabilities and shareholders’ equity		$	56,259,934			$	55,555,246			$	54,286,176			$	52,873,511			$	52,949,649

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

	Three Months Ended																		Years Ended
(Dollars in thousands, except per share data)	Dec 31, 2023				Sep 30, 2023				Jun 30, 2023			Mar 31, 2023				Dec 31, 2022			Dec 31, 2023				Dec 31, 2022
Interest income
Interest and fees on loans	$	694,943			$	666,260			$	621,057		$	558,692			$	498,838		$	2,540,952			$	1,507,726
Mortgage loans held-for-sale		4,318				4,767				4,178			3,528				3,997			16,791				21,195
Interest-bearing deposits with banks		21,762				26,866				16,882			13,468				20,349			78,978				43,447
Federal funds sold and securities purchased under resale agreements		578				1,157				1			70				1,263			1,806				4,903
Investment securities		68,237				59,164				51,243			59,943				53,092			238,587				160,600
Trading account securities		15				6				6			14				6			41				22
Federal Home Loan Bank and Federal Reserve Bank stock		3,792				3,896				3,544			3,680				2,918			14,912				8,622
Brokerage customer receivables		203				284				265			295				282			1,047				928
Total interest income		793,848				762,400				697,176			639,690				580,745			2,893,114				1,747,443
Interest expense
Interest on deposits		285,390				262,783				213,495			144,802				95,447			906,470				175,202
Interest on Federal Home Loan Bank advances		18,316				17,436				17,399			19,135				13,823			72,286				30,329
Interest on other borrowings		9,557				9,384				8,485			7,854				5,313			35,280				14,294
Interest on subordinated notes		5,522				5,491				5,523			5,488				5,520			22,024				22,004
Interest on junior subordinated debentures		5,089				4,948				4,737			4,416				3,826			19,190				10,252
Total interest expense		323,874				300,042				249,639			181,695				123,929			1,055,250				252,081
Net interest income		469,974				462,358				447,537			457,995				456,816			1,837,864				1,495,362
Provision for credit losses		42,908				19,923				28,514			23,045				47,646			114,390				78,589
Net interest income after provision for credit losses		427,066				442,435				419,023			434,950				409,170			1,723,474				1,416,773
Non-interest income
Wealth management		33,275				33,529				33,858			29,945				30,727			130,607				126,614
Mortgage banking		7,433				27,395				29,981			18,264				17,407			83,073				155,173
Service charges on deposit accounts		14,522				14,217				13,608			12,903				13,054			55,250				58,574
Gains (losses) on investment securities, net		2,484				(2,357	)			0			1,398				(6,745	)		1,525				(20,427	)
Fees from covered call options		4,679				4,215				2,578			10,391				7,956			21,863				14,133
Trading (losses) gains, net		(505	)			728				106			813				(306	)		1,142				3,752
Operating lease income, net		14,162				13,863				12,227			13,046				12,384			53,298				55,510
Other		24,779				20,888				20,672			21,009				19,362			87,348				67,724
Total non-interest income		100,829				112,478				113,030			107,769				93,839			434,106				461,053
Non-interest expense
Salaries and employee benefits		193,971				192,338				184,923			176,781				180,331			748,013				696,107
Software and equipment		27,779				25,951				26,205			24,697				24,699			104,632				95,885
Operating lease equipment		10,694				12,020				9,816			9,833				10,078			42,363				38,008
Occupancy, net		18,102				21,304				19,176			18,486				17,763			77,068				70,965
Data processing		8,892				10,773				9,726			9,409				7,927			38,800				31,209
Advertising and marketing		17,166				18,169				17,794			11,946				14,279			65,075				59,418
Professional fees		8,768				8,887				8,940			8,163				9,267			34,758				33,088
Amortization of other acquisition-related intangible assets		1,356				1,408				1,499			1,235				1,436			5,498				6,116
FDIC insurance		43,677				9,748				9,008			8,669				6,775			71,102				28,639
OREO expenses, net		(1,559	)			120				118			(207	)			369			(1,528	)			(140	)
Other		33,806				29,337				33,418			30,157				34,912			126,718				117,976
Total non-interest expense		362,652				330,055				320,623			299,169				307,836			1,312,499				1,177,271
Income before taxes		165,243				224,858				211,430			243,550				195,173			845,081				700,555
Income tax expense		41,763				60,660				56,680			63,352				50,356			222,455				190,873
Net income	$	123,480			$	164,198			$	154,750		$	180,198			$	144,817		$	622,626			$	509,682
Preferred stock dividends		6,991				6,991				6,991			6,991				6,991			27,964				27,964
Net income applicable to common shares	$	116,489			$	157,207			$	147,759		$	173,207			$	137,826		$	594,662			$	481,718
Net income per common share - Basic	$	1.90			$	2.57			$	2.41		$	2.84			$	2.27		$	9.72			$	8.14
Net income per common share - Diluted	$	1.87			$	2.53			$	2.38		$	2.80			$	2.23		$	9.58			$	8.02
Cash dividends declared per common share	$	0.40			$	0.40			$	0.40		$	0.40			$	0.34		$	1.60			$	1.36
Weighted average common shares outstanding		61,236				61,213				61,192			60,950				60,769			61,149				59,205
Dilutive potential common shares		1,166				964				902			873				1,096			938				886
Average common shares and dilutive common shares		62,402				62,177				62,094			61,823				61,865			62,087				60,091

TABLE 1: LOAN PORTFOLIO MIX AND GROWTH RATES

															% Growth From
(Dollars in thousands)	Dec 31, 2023			Sep 30, 2023			Jun 30, 2023			Mar 31, 2023			Dec 31, 2022		Sep 30, 2023(1)			Dec 31, 2022
Balance:
Mortgage loans held-for-sale, excluding early buy-out exercised loans guaranteed by U.S. government agencies	$	155,529		$	190,511		$	235,570		$	155,687		$	156,297	(73	)%		0	%
Mortgage loans held-for-sale, early buy-out exercised loans guaranteed by U.S. government agencies		137,193			114,297			103,158			146,806			143,638	79			(4	)
Total mortgage loans held-for-sale	$	292,722		$	304,808		$	338,728		$	302,493		$	299,935	(16	)%		(2	)%
Core loans:
Commercial
Commercial and industrial	$	5,804,629		$	5,894,732		$	5,737,633		$	5,855,035		$	5,852,166	(6	)%		(1	)%
Asset-based lending		1,433,250			1,396,591			1,465,848			1,482,071			1,473,344	10			(3	)
Municipal		677,143			676,915			653,117			655,301			668,235	0			1
Leases		2,208,368			2,109,628			1,925,767			1,904,137			1,840,928	19			20
PPP loans		11,533			13,744			15,337			17,195			28,923	(64	)		(60	)
Commercial real estate
Residential construction		58,642			51,550			51,689			69,998			76,877	55			(24	)
Commercial construction		1,729,937			1,547,322			1,409,751			1,234,762			1,102,098	47			57
Land		295,462			294,901			298,996			292,293			307,955	1			(4	)
Office		1,455,417			1,422,748			1,404,422			1,392,040			1,337,176	9			9
Industrial		2,135,876			2,057,957			2,002,740			1,858,088			1,836,276	15			16
Retail		1,337,517			1,341,451			1,304,083			1,309,680			1,304,444	(1	)		3
Multi-family		2,815,911			2,710,829			2,696,478			2,635,411			2,560,709	15			10
Mixed use and other		1,515,402			1,519,422			1,440,652			1,446,806			1,425,412	(1	)		6
Home equity		343,976			343,258			336,974			337,016			332,698	1			3
Residential real estate
Residential real estate loans for investment		2,619,083			2,538,630			2,455,392			2,309,393			2,207,595	13			19
Residential mortgage loans, early buy-out eligible loans guaranteed by U.S. government agencies		92,780			97,911			117,024			119,301			80,701	(21	)		15
Residential mortgage loans, early buy-out exercised loans guaranteed by U.S. government agencies		57,803			71,062			70,824			76,851			84,087	(74	)		(31	)
Total core loans	$	24,592,729		$	24,088,651		$	23,386,727		$	22,995,378		$	22,519,624	8	%		9	%
Niche loans:
Commercial
Franchise	$	1,092,532		$	1,074,162		$	1,091,164		$	1,131,913		$	1,169,623	7	%		(7	)%
Mortgage warehouse lines of credit		230,211			245,450			381,043			235,684			237,392	(25	)		(3	)
Community Advantage - homeowners association		452,734			424,054			405,042			389,922			380,875	27			19
Insurance agency lending		921,653			890,197			925,520			905,727			897,678	14			3
Premium Finance receivables
U.S. property & casualty insurance		5,983,103			5,815,346			5,900,228			5,043,486			5,103,820	11			17
Canada property & casualty insurance		920,426			907,401			862,470			695,394			745,639	6			23
Life insurance		7,877,943			7,931,808			8,039,273			8,125,802			8,090,998	(3	)		(3	)
Consumer and other		60,500			68,963			31,941			42,165			50,836	(49	)		19
Total niche loans	$	17,539,102		$	17,357,381		$	17,636,681		$	16,570,093		$	16,676,861	4	%		5	%
Total loans, net of unearned income	$	42,131,831		$	41,446,032		$	41,023,408		$	39,565,471		$	39,196,485	7	%		7	%

(1)   Annualized.

TABLE 2: DEPOSIT PORTFOLIO MIX AND GROWTH RATES

																				% Growth From
(Dollars in thousands)	Dec 31, 2023				Sep 30, 2023				Jun 30, 2023				Mar 31, 2023				Dec 31, 2022			Sep 30, 2023 (1)			Dec 31, 2022
Balance:
Non-interest-bearing	$	10,420,401			$	10,347,006			$	10,604,915			$	11,236,083			$	12,668,160		3	%		(18	)%
NOW and interest-bearing demand deposits		5,797,649				6,006,114				5,814,836				5,576,558				5,591,986		(14	)		4
Wealth management deposits(2)		1,614,499				1,788,099				1,417,984				1,809,933				2,463,833		(39	)		(34	)
Money market		15,149,215				14,478,504				14,523,124				13,552,277				12,886,795		18			18
Savings		5,790,334				5,584,294				5,321,578				5,192,108				4,556,635		15			27
Time certificates of deposit		6,625,072				6,788,669				6,356,270				5,351,252				4,735,135		(10	)		40
Total deposits	$	45,397,170			$	44,992,686			$	44,038,707			$	42,718,211			$	42,902,544		4	%		6	%
Mix:
Non-interest-bearing		23	%			23	%			24	%			26	%			30	%
NOW and interest-bearing demand deposits		13				13				13				13				13
Wealth management deposits(2)		4				4				3				4				5
Money market		33				32				33				32				30
Savings		13				13				12				12				11
Time certificates of deposit		14				15				15				13				11
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 December 31, 2023

(Dollars in thousands)		Total Time Certificates of Deposit			Weighted-Average Rate of Maturing Time Certificates of Deposit
1-3 months		$	1,314,517		3.64	%
4-6 months			2,040,662		4.53
7-9 months			1,679,572		4.57
10-12 months			960,154		3.98
13-18 months			501,492		3.49
19-24 months			56,895		2.65
24+ months			71,780		1.62
Total		$	6,625,072		4.15	%

TABLE 4: QUARTERLY AVERAGE BALANCES

		Average Balance for three months ended,
		Dec 31,				Sep 30,				Jun 30,				Mar 31,				Dec 31,
(In thousands)			2023				2023				2023				2023				2022
Interest-bearing deposits with banks, securities purchased under resale agreements and cash equivalents(1)		$	1,682,176			$	2,053,568			$	1,454,057			$	1,235,748			$	2,449,889
Investment securities(2)			7,971,068				7,706,285				7,252,582				7,956,722				7,310,383
FHLB and FRB stock			204,593				201,252				223,813				233,615				185,290
Liquidity management assets(3)			9,857,837				9,961,105				8,930,452				9,426,085				9,945,562
Other earning assets(3)(4)			14,821				17,879				17,401				18,445				18,585
Mortgage loans held-for-sale			279,569				319,099				307,683				270,966				308,639
Loans, net of unearned income(3)(5)			41,361,952				40,707,042				40,106,393				39,093,368				38,566,871
Total earning assets(3)			51,514,179				51,005,125				49,361,929				48,808,864				48,839,657
Allowance for loan and investment security losses			(329,441	)			(319,491	)			(302,627	)			(282,704	)			(252,827	)
Cash and due from banks			443,989				459,819				481,510				488,457				475,691
Other assets			3,388,348				3,236,528				3,061,141				3,060,701				3,025,097
Total assets		$	55,017,075			$	54,381,981			$	52,601,953			$	52,075,318			$	52,087,618
NOW and interest-bearing demand deposits		$	5,868,976			$	5,815,155			$	5,540,597			$	5,271,740			$	5,598,291
Wealth management deposits			1,704,099				1,512,765				1,545,626				2,167,081				2,883,247
Money market accounts			14,212,320				14,155,446				13,735,924				12,533,468				12,319,842
Savings accounts			5,676,155				5,472,535				5,206,609				4,830,322				4,403,113
Time deposits			6,645,980				6,495,906				5,603,024				5,041,638				4,023,232
Interest-bearing deposits			34,107,530				33,451,807				31,631,780				29,844,249				29,227,725
Federal Home Loan Bank advances			2,326,073				2,241,292				2,227,106				2,474,882				2,088,201
Other borrowings			633,673				657,454				625,757				602,937				480,553
Subordinated notes			437,785				437,658				437,545				437,422				437,312
Junior subordinated debentures			253,566				253,566				253,566				253,566				253,566
Total interest-bearing liabilities			37,758,627				37,041,777				35,175,754				33,613,056				32,487,357
Non-interest-bearing deposits			10,406,585				10,612,009				10,908,022				12,171,631				13,404,036
Other liabilities			1,785,667				1,644,312				1,473,459				1,395,360				1,485,369
Equity			5,066,196				5,083,883				5,044,718				4,895,271				4,710,856
Total liabilities and shareholders’ equity		$	55,017,075			$	54,381,981			$	52,601,953			$	52,075,318			$	52,087,618
Net free funds/contribution(6)		$	13,755,552			$	13,963,348			$	14,186,175			$	15,195,808			$	16,352,300

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

TABLE 5: QUARTERLY NET INTEREST INCOME

		Net Interest Income for three months ended,
		Dec 31,				Sep 30,				Jun 30,				Mar 31,				Dec 31,
(In thousands)			2023				2023				2023				2023				2022
Interest income:
Interest-bearing deposits with banks, securities purchased under resale agreements and cash equivalents		$	22,340			$	28,022			$	16,882			$	13,538			$	21,612
Investment securities			68,812				59,737				51,795				60,494				53,630
FHLB and FRB stock			3,792				3,896				3,544				3,680				2,918
Liquidity management assets(1)			94,944				91,655				72,221				77,712				78,160
Other earning assets(1)			222				291				272				313				289
Mortgage loans held-for-sale			4,318				4,767				4,178				3,528				3,997
Loans, net of unearned income(1)			697,093				668,183				622,939				560,564				500,432
Total interest income		$	796,577			$	764,896			$	699,610			$	642,117			$	582,878
Interest expense:
NOW and interest-bearing demand deposits		$	38,124			$	36,001			$	29,178			$	18,772			$	14,982
Wealth management deposits			12,076				9,350				9,097				12,258				14,079
Money market accounts			130,252				124,742				106,630				68,276				45,468
Savings accounts			36,463				31,784				25,603				15,816				8,421
Time deposits			68,475				60,906				42,987				29,680				12,497
Interest-bearing deposits			285,390				262,783				213,495				144,802				95,447
Federal Home Loan Bank advances			18,316				17,436				17,399				19,135				13,823
Other borrowings			9,557				9,384				8,485				7,854				5,313
Subordinated notes			5,522				5,491				5,523				5,488				5,520
Junior subordinated debentures			5,089				4,948				4,737				4,416				3,826
Total interest expense		$	323,874			$	300,042			$	249,639			$	181,695			$	123,929
Less: Fully taxable-equivalent adjustment			(2,729	)			(2,496	)			(2,434	)			(2,427	)			(2,133	)
Net interest income (GAAP)(2)			469,974				462,358				447,537				457,995				456,816
Fully taxable-equivalent adjustment			2,729				2,496				2,434				2,427				2,133
Net interest income, fully taxable-equivalent (non-GAAP)(2)		$	472,703			$	464,854			$	449,971			$	460,422			$	458,949

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

TABLE 6: QUARTERLY NET INTEREST MARGIN

		Net Interest Margin for three months ended,
		Dec 31, 2023			Sep 30, 2023			Jun 30, 2023			Mar 31, 2023			Dec 31, 2022
Yield earned on:
Interest-bearing deposits with banks, securities purchased under resale agreements and cash equivalents		5.27	%		5.41	%		4.66	%		4.44	%		3.50	%
Investment securities		3.42			3.08			2.86			3.08			2.91
FHLB and FRB stock		7.35			7.68			6.35			6.39			6.25
Liquidity management assets		3.82			3.65			3.24			3.34			3.12
Other earning assets		5.92			6.47			6.27			6.87			6.17
Mortgage loans held-for-sale		6.13			5.93			5.45			5.28			5.14
Loans, net of unearned income		6.69			6.51			6.23			5.82			5.15
Total earning assets		6.13	%		5.95	%		5.68	%		5.34	%		4.73	%
Rate paid on:
NOW and interest-bearing demand deposits		2.58	%		2.46	%		2.11	%		1.44	%		1.06	%
Wealth management deposits		2.81			2.45			2.36			2.29			1.94
Money market accounts		3.64			3.50			3.11			2.21			1.46
Savings accounts		2.55			2.30			1.97			1.33			0.76
Time deposits		4.09			3.72			3.08			2.39			1.23
Interest-bearing deposits		3.32			3.12			2.71			1.97			1.30
Federal Home Loan Bank advances		3.12			3.09			3.13			3.14			2.63
Other borrowings		5.98			5.66			5.44			5.28			4.39
Subordinated notes		5.00			4.98			5.06			5.02			5.05
Junior subordinated debentures		7.96			7.74			7.49			6.97			5.90
Total interest-bearing liabilities		3.40	%		3.21	%		2.85	%		2.19	%		1.51	%
Interest rate spread(1)(2)		2.73	%		2.74	%		2.83	%		3.15	%		3.22	%
Less: Fully taxable-equivalent adjustment		(0.02	)		(0.02	)		(0.02	)		(0.02	)		(0.02	)
Net free funds/contribution(3)		0.91			0.88			0.83			0.68			0.51
Net interest margin (GAAP)(2)		3.62	%		3.60	%		3.64	%		3.81	%		3.71	%
Fully taxable-equivalent adjustment		0.02			0.02			0.02			0.02			0.02
Net interest margin, fully taxable-equivalent (non-GAAP)(2)		3.64	%		3.62	%		3.66	%		3.83	%		3.73	%

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

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

	Average Balance for twelve months ended,							Interest for twelve months ended,							Yield/Rate for twelve months ended,
(Dollars in thousands)	Dec 31, 2023				Dec 31, 2022			Dec 31, 2023				Dec 31, 2022			Dec 31, 2023			Dec 31, 2022
Interest-bearing deposits with banks, securities purchased under resale agreements and cash equivalents(1)	$	1,608,835			$	3,323,196		$	80,783			$	48,350		5.02	%		1.45	%
Investment securities(2)		7,721,661				6,735,732			240,837				162,577		3.12			2.41
FHLB and FRB stock		215,699				150,223			14,912				8,622		6.91			5.74
Liquidity management assets(3)(4)	$	9,546,195			$	10,209,151		$	336,532			$	219,549		3.53	%		2.15	%
Other earning assets(3)(4)(5)		17,129				22,391			1,098				955		6.41			4.27
Mortgage loans held-for-sale		294,421				496,088			16,791				21,195		5.70			4.27
Loans, net of unearned income(3)(4)(6)		40,324,472				36,684,528			2,548,779				1,511,345		6.32			4.12
Total earning assets(4)	$	50,182,217			$	47,412,158		$	2,903,200			$	1,753,044		5.79	%		3.70	%
Allowance for loan and investment security losses		(308,724	)			(256,690	)
Cash and due from banks		468,298				473,025
Other assets		3,187,715				2,795,826
Total assets	$	53,529,506			$	50,424,319
NOW and interest-bearing demand deposits	$	5,626,277			$	5,355,077		$	122,074			$	27,566		2.17	%		0.51	%
Wealth management deposits		1,730,523				2,827,497			42,782				29,750		2.47			1.05
Money market accounts		13,665,248				12,254,159			429,900				80,591		3.15			0.66
Savings accounts		5,299,205				4,014,166			109,666				11,234		2.07			0.28
Time deposits		5,952,537				3,812,148			202,048				26,061		3.39			0.68
Interest-bearing deposits	$	32,273,790			$	28,263,047		$	906,470			$	175,202		2.81	%		0.62	%
Federal Home Loan Bank advances		2,316,722				1,484,663			72,287				30,329		3.12			2.04
Other borrowings		630,115				485,820			35,280				14,294		5.60			2.94
Subordinated notes		437,604				437,139			22,023				22,004		5.03			5.03
Junior subordinated debentures		253,566				253,566			19,190				10,252		7.57			4.10
Total interest-bearing liabilities	$	35,911,797			$	30,924,235		$	1,055,250			$	252,081		2.94	%		0.81	%
Non-interest-bearing deposits		11,018,596				13,667,879
Other liabilities		1,575,960				1,197,981
Equity		5,023,153				4,634,224
Total liabilities and shareholders’ equity	$	53,529,506			$	50,424,319
Interest rate spread(4)(7)															2.85	%		2.89	%
Less: Fully taxable-equivalent adjustment									(10,086	)			(5,601	)	(0.02	)		(0.02	)
Net free funds/contribution(8)	$	14,270,420			$	16,487,923									0.83			0.28
Net interest income/margin (GAAP)(4)								$	1,837,864			$	1,495,362		3.66	%		3.15	%
Fully taxable-equivalent adjustment									10,086				5,601		0.02			0.02
Net interest income/margin, fully taxable-equivalent (non-GAAP)(4)								$	1,847,950			$	1,500,963		3.68	%		3.17	%

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

TABLE 8: INTEREST RATE SENSITIVITY

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

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

Static Shock Scenario		+200 Basis Points			+100 Basis Points			-100 Basis Points			-200 Basis Points
Dec 31, 2023		2.6	%		1.8	%		0.4	%		(0.7	)%
Sep 30, 2023		3.3			1.9			(2.0	)		(5.2	)
Jun 30, 2023		5.7			2.9			(2.9	)		(7.9	)
Mar 31, 2023		4.2			2.4			(2.4	)		(7.3	)
Dec 31, 2022		7.2			3.8			(5.0	)		(12.1	)

Ramp Scenario	+200 Basis Points			+100 Basis Points			-100 Basis Points			-200 Basis Points
Dec 31, 2023	1.6	%		1.2	%		(0.3	)%		(1.5	)%
Sep 30, 2023	1.7			1.2			(0.5	)		(2.4	)
Jun 30, 2023	2.9			1.8			(0.9	)		(3.4	)
Mar 31, 2023	3.0			1.7			(1.3	)		(3.4	)
Dec 31, 2022	5.6			3.0			(2.9	)		(6.8	)

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

TABLE 9: MATURITIES AND SENSITIVITIES TO CHANGES IN INTEREST RATES

	Loans repricing or contractual maturity period
As of December 31, 2023	One year or less			From one to five years			From five to fifteen years			After fifteen years			Total
(In thousands)
Commercial
Fixed rate	$	520,408		$	2,954,554		$	1,720,913		$	28,070		$	5,223,945
Variable rate		7,606,936			1,172			—			—			7,608,108
Total commercial	$	8,127,344		$	2,955,726		$	1,720,913		$	28,070		$	12,832,053
Commercial real estate
Fixed rate		646,873			2,870,147			525,167			50,726			4,092,913
Variable rate		7,233,835			17,377			39			—			7,251,251
Total commercial real estate	$	7,880,708		$	2,887,524		$	525,206		$	50,726		$	11,344,164
Home equity
Fixed rate		9,863			3,994			—			28			13,885
Variable rate		330,091			—			—			—			330,091
Total home equity	$	339,954		$	3,994		$	—		$	28		$	343,976
Residential real estate
Fixed rate		19,921			3,412			30,814			1,047,862			1,102,009
Variable rate		75,107			286,511			1,306,039			—			1,667,657
Total residential real estate	$	95,028		$	289,923		$	1,336,853		$	1,047,862		$	2,769,666
Premium finance receivables - property & casualty
Fixed rate		6,785,201			118,328			—			—			6,903,529
Variable rate		—			—			—			—			—
Total premium finance receivables - property & casualty	$	6,785,201		$	118,328		$	—		$	—		$	6,903,529
Premium finance receivables - life insurance
Fixed rate		78,342			614,816			3,891			—			697,049
Variable rate		7,180,894			—			—			—			7,180,894
Total premium finance receivables - life insurance	$	7,259,236		$	614,816		$	3,891		$	—		$	7,877,943
Consumer and other
Fixed rate		11,994			6,550			10			464			19,018
Variable rate		41,482			—			—			—			41,482
Total consumer and other	$	53,476		$	6,550		$	10		$	464		$	60,500
Total per category
Fixed rate		8,072,602			6,571,801			2,280,795			1,127,150			18,052,348
Variable rate		22,468,345			305,060			1,306,078			—			24,079,483
Total loans, net of unearned income	$	30,540,947		$	6,876,861		$	3,586,873		$	1,127,150		$	42,131,831
Variable Rate Loan Pricing by Index:
SOFR tenors													$	13,331,910
One- year CMT														6,133,619
Prime														3,430,421
Ameribor tenors														341,747
Other U.S. Treasury tenors														37,997
Other														803,789
Total variable rate													$	24,079,483

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/c7ce0095-db8d-4afa-92f9-f9c048beb947

Source: Bloomberg

As noted in the table on the previous page, the majority of the Company’s portfolio is tied to SOFR and CMT indices which, as shown in the table above, do not mirror the same changes as the Prime rate which has historically moved when the Federal Reserve raises or lowers interest rates. Specifically, the Company has variable rate loans of $10.7 billion tied to one-month SOFR and $6.1 billion tied to one-year CMT. The above chart shows:

		Basis Point (bp) Change in
		1-month SOFR		One- year CMT			Prime
Fourth Quarter 2023		3	bps	(67	)	bps	0	bps
Third Quarter 2023		18		6			25
Second Quarter 2023		34		76			25
First Quarter 2023		44		(9	)		50
Fourth Quarter 2022		132		68			125

TABLE 10: ALLOWANCE FOR CREDIT LOSSES

		Three Months Ended																			Years Ended
		Dec 31,				Sep 30,				Jun 30,				Mar 31,				Dec 31,			Dec 31,				Dec 31,
(Dollars in thousands)			2023				2023				2023				2023				2022			2023				2022
Allowance for credit losses at beginning of period		$	399,531			$	387,786			$	376,261			$	357,936			$	315,338		$	357,936			$	299,731
Cumulative effect adjustment from the adoption of ASU 2022-02			—				—				—				741				—			741				—
Provision for credit losses			42,908				19,923				28,514				23,045				47,646			114,390				78,589
Other adjustments			62				(60	)			41				4				31			47				(108	)
Charge-offs:
Commercial			5,114				2,427				5,629				2,543				3,019			15,713				14,141
Commercial real estate			5,386				1,713				8,124				5				538			15,228				1,379
Home equity			—				227				—				—				—			227				432
Residential real estate			114				78				—				—				—			192				471
Premium finance receivables - property & casualty			6,706				5,830				4,519				4,629				3,629			21,684				14,240
Premium finance receivables - life insurance			—				18				134				21				28			173				35
Consumer and other			148				184				110				153				—			595				1,081
Total charge-offs			17,468				10,477				18,516				7,351				7,214			53,812				31,779
Recoveries:
Commercial			592				1,162				505				392				691			2,651				4,748
Commercial real estate			92				243				25				100				61			460				701
Home equity			34				33				37				35				65			139				319
Residential real estate			10				1				6				4				6			21				77
Premium finance receivables - property & casualty			1,820				906				890				1,314				1,279			4,930				5,522
Premium finance receivables - life insurance			7				—				—				9				—			16				—
Consumer and other			24				14				23				32				33			93				136
Total recoveries			2,579				2,359				1,486				1,886				2,135			8,310				11,503
Net charge-offs			(14,889	)			(8,118	)			(17,030	)			(5,465	)			(5,079	)		(45,502	)			(20,276	)
Allowance for credit losses at period end		$	427,612			$	399,531			$	387,786			$	376,261			$	357,936		$	427,612			$	357,936
Annualized net charge-offs (recoveries) by category as a percentage of its own respective category’s average:
Commercial			0.14	%			0.04	%			0.16	%			0.07	%			0.08	%		0.10	%			0.08	%
Commercial real estate			0.19				0.05				0.31				0.00				0.02			0.14				0.01
Home equity			(0.04	)			0.23				(0.04	)			(0.04	)			(0.08	)		0.03				0.03
Residential real estate			0.02				0.01				0.00				0.00				0.00			0.01				0.02
Premium finance receivables - property & casualty			0.29				0.29				0.24				0.23				0.16			0.27				0.16
Premium finance receivables - life insurance			(0.00	)			0.00				0.01				0.00				0.00			0.00				0.00
Consumer and other			0.58				0.65				0.45				0.74				(0.16	)		0.60				1.22
Total loans, net of unearned income			0.14	%			0.08	%			0.17	%			0.06	%			0.05	%		0.11				0.06	%
Loans at period end		$	42,131,831			$	41,446,032			$	41,023,408			$	39,565,471			$	39,196,485
Allowance for loan losses as a percentage of loans at period end			0.82	%			0.76	%			0.74	%			0.73	%			0.69	%
Allowance for loan and unfunded lending-related commitment losses as a percentage of loans at period end			1.01				0.96				0.94				0.95				0.91

TABLE 11: ALLOWANCE AND PROVISION FOR CREDIT LOSSES BY COMPONENT

		Three Months Ended																		Years Ended
		Dec 31,				Sep 30,				Jun 30,				Mar 31,				Dec 31,		Dec 31,				Dec 31,
(In thousands)			2023				2023				2023				2023				2022		2023				2022
Provision for loan losses		$	44,023			$	20,717			$	31,516			$	22,520			$	29,110	$	118,776			$	42,721
Provision for unfunded lending-related commitments losses			(1,081	)			(769	)			(2,945	)			550				18,358		(4,245	)			35,458
Provision for held-to-maturity securities losses			(34	)			(25	)			(57	)			(25	)			178		(141	)			410
Provision for credit losses		$	42,908			$	19,923			$	28,514			$	23,045			$	47,646	$	114,390			$	78,589
Allowance for loan losses		$	344,235			$	315,039			$	302,499			$	287,972			$	270,173
Allowance for unfunded lending-related commitments losses			83,030				84,111				84,881				87,826				87,275
Allowance for loan losses and unfunded lending-related commitments losses			427,265				399,150				387,380				375,798				357,448
Allowance for held-to-maturity securities losses			347				381				406				463				488
Allowance for credit losses		$	427,612			$	399,531			$	387,786			$	376,261			$	357,936

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 December 31, 2023, September 30, 2023 and June 30, 2023.

	As of Dec 31, 2023								As of Sep 30, 2023								As of Jun 30, 2023
(Dollars in thousands)	Recorded Investment			Calculated Allowance			% of its category’s balance		Recorded Investment			Calculated Allowance			% of its category’s balance		Recorded Investment			Calculated Allowance			% of its category’s balance
Commercial:
Commercial, industrial and other	$	12,832,053		$	169,604		1.32	%	$	12,725,473		$	151,488		1.19	%	$	12,600,471		$	143,142		1.14	%
Commercial real estate:
Construction and development		2,084,041			94,081		4.51			1,893,773			90,622		4.79			1,760,436			86,725		4.93
Non-construction		9,260,123			129,772		1.40			9,052,407			125,096		1.38			8,848,375			128,971		1.46
Home equity		343,976			7,116		2.07			343,258			7,080		2.06			336,974			6,967		2.07
Residential real estate		2,769,666			13,133		0.47			2,707,603			12,659		0.47			2,643,240			12,252		0.46
Premium finance receivables
Property and casualty insurance		6,903,529			12,384		0.18			6,722,747			11,132		0.17			6,762,698			8,347		0.12
Life insurance		7,877,943			685		0.01			7,931,808			688		0.01			8,039,273			699		0.01
Consumer and other		60,500			490		0.81			68,963			385		0.56			31,941			277		0.87
Total loans, net of unearned income	$	42,131,831		$	427,265		1.01	%	$	41,446,032		$	399,150		0.96	%	$	41,023,408		$	387,380		0.94	%
Total core loans(1)	$	24,592,729		$	380,847		1.55	%	$	24,088,651		$	363,873		1.51	%	$	23,386,727		$	350,930		1.50	%
Total niche loans(1)		17,539,102			46,418		0.26			17,357,381			35,277		0.20			17,636,681			36,450		0.21

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

TABLE 13: LOAN PORTFOLIO AGING

(In thousands)		Dec 31, 2023			Sep 30, 2023			Jun 30, 2023			Mar 31, 2023			Dec 31, 2022
Loan Balances:
Commercial
Nonaccrual		$	38,940		$	43,569		$	40,460		$	47,950		$	35,579
90+ days and still accruing			98			200			573			—			462
60-89 days past due			19,488			22,889			22,808			10,755			21,128
30-59 days past due			85,743			35,681			48,970			95,593			56,696
Current			12,687,784			12,623,134			12,487,660			12,422,687			12,435,299
Total commercial		$	12,832,053		$	12,725,473		$	12,600,471		$	12,576,985		$	12,549,164
Commercial real estate
Nonaccrual		$	35,459		$	17,043		$	18,483		$	11,196		$	6,387
90+ days and still accruing			—			1,092			—			—			—
60-89 days past due			8,515			7,395			1,054			20,539			2,244
30-59 days past due			20,634			60,984			14,218			72,680			30,675
Current			11,279,556			10,859,666			10,575,056			10,134,663			9,911,641
Total commercial real estate		$	11,344,164		$	10,946,180		$	10,608,811		$	10,239,078		$	9,950,947
Home equity
Nonaccrual		$	1,341		$	1,363		$	1,361		$	1,190		$	1,487
90+ days and still accruing			—			—			110			—			—
60-89 days past due			62			219			316			116			—
30-59 days past due			2,263			1,668			601			1,118			2,152
Current			340,310			340,008			334,586			334,592			329,059
Total home equity		$	343,976		$	343,258		$	336,974		$	337,016		$	332,698
Residential real estate
Early buy-out loans guaranteed by U.S. government agencies(1)		$	150,583		$	168,973		$	187,848		$	196,152		$	164,788
Nonaccrual			15,391			16,103			13,652			11,333			10,171
90+ days and still accruing			—			—			—			104			—
60-89 days past due			2,325			1,145			7,243			74			4,364
30-59 days past due			22,942			904			872			19,183			9,982
Current			2,578,425			2,520,478			2,433,625			2,278,699			2,183,078
Total residential real estate		$	2,769,666		$	2,707,603		$	2,643,240		$	2,505,545		$	2,372,383
Premium finance receivables - property & casualty
Nonaccrual		$	27,590		$	26,756		$	19,583		$	18,543		$	13,470
90+ days and still accruing			20,135			16,253			12,785			9,215			15,841
60-89 days past due			23,236			16,552			22,670			14,287			14,926
30-59 days past due			50,437			31,919			32,751			32,545			40,557
Current			6,782,131			6,631,267			6,674,909			5,664,290			5,764,665
Total Premium finance receivables - property & casualty		$	6,903,529		$	6,722,747		$	6,762,698		$	5,738,880		$	5,849,459
Premium finance receivables - life insurance
Nonaccrual		$	—		$	—		$	6		$	—		$	—
90+ days and still accruing			—			10,679			1,667			1,066			17,245
60-89 days past due			16,206			41,894			3,729			21,552			5,260
30-59 days past due			45,464			14,972			90,117			52,975			68,725
Current			7,816,273			7,864,263			7,943,754			8,050,209			7,999,768
Total Premium finance receivables - life insurance		$	7,877,943		$	7,931,808		$	8,039,273		$	8,125,802		$	8,090,998
Consumer and other
Nonaccrual		$	22		$	16		$	4		$	6		$	6
90+ days and still accruing			54			27			28			87			49
60-89 days past due			25			196			51			10			18
30-59 days past due			165			519			146			379			224
Current			60,234			68,205			31,712			41,683			50,539
Total consumer and other		$	60,500		$	68,963		$	31,941		$	42,165		$	50,836
Total loans, net of unearned income
Early buy-out loans guaranteed by U.S. government agencies(1)		$	150,583		$	168,973		$	187,848		$	196,152		$	164,788
Nonaccrual			118,743			104,850			93,549			90,218			67,100
90+ days and still accruing			20,287			28,251			15,163			10,472			33,597
60-89 days past due			69,857			90,290			57,871			67,333			47,940
30-59 days past due			227,648			146,647			187,675			274,473			209,011
Current			41,544,713			40,907,021			40,481,302			38,926,823			38,674,049
Total loans, net of unearned income		$	42,131,831		$	41,446,032		$	41,023,408		$	39,565,471		$	39,196,485

(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⁾

	Dec 31,				Sep 30,				Jun 30,				Mar 31,				Dec 31,
(Dollars in thousands)		2023				2023				2023				2023				2022
Loans past due greater than 90 days and still accruing:
Commercial	$	98			$	200			$	573			$	—			$	462
Commercial real estate		—				1,092				—				—				—
Home equity		—				—				110				—				—
Residential real estate		—				—				—				104				—
Premium finance receivables - property & casualty		20,135				16,253				12,785				9,215				15,841
Premium finance receivables - life insurance		—				10,679				1,667				1,066				17,245
Consumer and other		54				27				28				87				49
Total loans past due greater than 90 days and still accruing		20,287				28,251				15,163				10,472				33,597
Non-accrual loans:
Commercial		38,940				43,569				40,460				47,950				35,579
Commercial real estate		35,459				17,043				18,483				11,196				6,387
Home equity		1,341				1,363				1,361				1,190				1,487
Residential real estate		15,391				16,103				13,652				11,333				10,171
Premium finance receivables - property & casualty		27,590				26,756				19,583				18,543				13,470
Premium finance receivables - life insurance		—				—				6				—				—
Consumer and other		22				16				4				6				6
Total non-accrual loans		118,743				104,850				93,549				90,218				67,100
Total non-performing loans:
Commercial		39,038				43,769				41,033				47,950				36,041
Commercial real estate		35,459				18,135				18,483				11,196				6,387
Home equity		1,341				1,363				1,471				1,190				1,487
Residential real estate		15,391				16,103				13,652				11,437				10,171
Premium finance receivables - property & casualty		47,725				43,009				32,368				27,758				29,311
Premium finance receivables - life insurance		—				10,679				1,673				1,066				17,245
Consumer and other		76				43				32				93				55
Total non-performing loans	$	139,030			$	133,101			$	108,712			$	100,690			$	100,697
Other real estate owned		13,309				12,928				10,275				8,050				8,589
Other real estate owned - from acquisitions		—				1,132				1,311				1,311				1,311
Total non-performing assets	$	152,339			$	147,161			$	120,298			$	110,051			$	110,597
Total non-performing loans by category as a percent of its own respective category’s period-end balance:
Commercial		0.30	%			0.34	%			0.33	%			0.38	%			0.29	%
Commercial real estate		0.31				0.17				0.17				0.11				0.06
Home equity		0.39				0.40				0.44				0.35				0.45
Residential real estate		0.56				0.59				0.52				0.46				0.43
Premium finance receivables - property & casualty		0.69				0.64				0.48				0.48				0.50
Premium finance receivables - life insurance		—				0.13				0.02				0.01				0.21
Consumer and other		0.13				0.06				0.10				0.22				0.11
Total loans, net of unearned income		0.33	%			0.32	%			0.26	%			0.25	%			0.26	%
Total non-performing assets as a percentage of total assets		0.27	%			0.26	%			0.22	%			0.21	%			0.21	%
Allowance for loan losses and unfunded lending-related commitments losses as a percentage of non-accrual loans		359.82	%			380.69	%			414.09	%			416.54	%			532.71	%

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

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

	Three Months Ended																			Years Ended
	Dec 31,				Sep 30,				Jun 30,				Mar 31,				Dec 31,			Dec 31,				Dec 31,
(In thousands)		2023				2023				2023				2023				2022			2023				2022
Balance at beginning of period	$	133,101			$	108,712			$	100,690			$	100,697			$	97,633		$	100,697			$	74,438
Additions from becoming non-performing in the respective period		59,010				18,666				21,246				24,455				10,027			123,377				72,243
Return to performing status		(24,469	)			(1,702	)			(360	)			(480	)			(1,167	)		(27,011	)			(3,050	)
Payments received		(10,000	)			(6,488	)			(12,314	)			(5,261	)			(16,351	)		(34,063	)			(60,936	)
Transfer to OREO and other repossessed assets		(2,623	)			(2,671	)			(2,958	)			—				(3,365	)		(8,252	)			(9,538	)
Charge-offs, net		(9,480	)			(3,011	)			(2,696	)			(1,159	)			(1,363	)		(16,346	)			(6,027	)
Net change for niche loans(1)		(6,509	)			19,595				5,104				(17,562	)			15,283			628				33,567
Balance at end of period	$	139,030			$	133,101			$	108,712			$	100,690			$	100,697		$	139,030			$	100,697

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

Other Real Estate Owned

	Three Months Ended
	Dec 31,				Sep 30,				Jun 30,				Mar 31,				Dec 31,
(In thousands)		2023				2023				2023				2023				2022
Balance at beginning of period	$	14,060			$	11,586			$	9,361			$	9,900			$	6,687
Disposals/resolved		(3,416	)			(467	)			(733	)			(435	)			(152	)
Transfers in at fair value, less costs to sell		2,665				2,941				2,958				—				3,365
Fair value adjustments		—				—				—				(104	)			—
Balance at end of period	$	13,309			$	14,060			$	11,586			$	9,361			$	9,900
	Period End
	Dec 31,				Sep 30,				Jun 30,				Mar 31,				Dec 31,
Balance by Property Type:		2023				2023				2023				2023				2022
Residential real estate	$	720			$	441			$	318			$	1,051			$	1,585
Commercial real estate		12,589				13,619				11,268				8,310				8,315
Total	$	13,309			$	14,060			$	11,586			$	9,361			$	9,900

TABLE 15: NON-INTEREST INCOME

	Three Months Ended																			Q4 2023 compared to Q3 2023							Q4 2023 compared to Q4 2022
	Dec 31,				Sep 30,				Jun 30,			Mar 31,				Dec 31,
(Dollars in thousands)		2023				2023				2023			2023				2022			$ Change				% Change			$ Change				% Change
Brokerage	$	5,349			$	4,359			$	4,404		$	4,533			$	4,177			$	990			23	%		$	1,172			28	%
Trust and asset management		27,926				29,170				29,454			25,412				26,550				(1,244	)		(4	)			1,376			5
Total wealth management		33,275				33,529				33,858			29,945				30,727				(254	)		(1	)			2,548			8
Mortgage banking		7,433				27,395				29,981			18,264				17,407				(19,962	)		(73	)			(9,974	)		(57	)
Service charges on deposit accounts		14,522				14,217				13,608			12,903				13,054				305			2				1,468			11
Gains (losses) on investment securities, net		2,484				(2,357	)			0			1,398				(6,745	)			4,841			NM				9,229			NM
Fees from covered call options		4,679				4,215				2,578			10,391				7,956				464			11				(3,277	)		(41	)
Trading (losses) gains, net		(505	)			728				106			813				(306	)			(1,233	)		NM				(199	)		65
Operating lease income, net		14,162				13,863				12,227			13,046				12,384				299			2				1,778			14
Other:
Interest rate swap fees		4,021				2,913				2,711			2,606				2,319				1,108			38				1,702			73
BOLI		1,747				729				1,322			1,351				1,394				1,018			NM				353			25
Administrative services		1,329				1,336				1,319			1,615				1,736				(7	)		(1	)			(407	)		(23	)
Foreign currency remeasurement gains (losses)		1,150				(446	)			543			(188	)			277				1,596			NM				873			NM
Early pay-offs of capital leases		157				461				201			365				131				(304	)		(66	)			26			20
Miscellaneous		16,375				15,895				14,576			15,260				13,505				480			3				2,870			21
Total Other		24,779				20,888				20,672			21,009				19,362				3,891			19				5,417			28
Total Non-Interest Income	$	100,829			$	112,478			$	113,030		$	107,769			$	93,839			$	(11,649	)		(10	)%		$	6,990			7	%

	Years Ended
	Dec 31,			Dec 31,				$				%
(Dollars in thousands)		2023			2022			Change				Change
Brokerage	$	18,645		$	17,668			$	977			6	%
Trust and asset management		111,962			108,946				3,016			3
Total wealth management		130,607			126,614				3,993			3
Mortgage banking		83,073			155,173				(72,100	)		(46	)
Service charges on deposit accounts		55,250			58,574				(3,324	)		(6	)
Gains (losses) on investment securities, net		1,525			(20,427	)			21,952			NM
Fees from covered call options		21,863			14,133				7,730			55
Trading gains, net		1,142			3,752				(2,610	)		(70	)
Operating lease income, net		53,298			55,510				(2,212	)		(4	)
Other:
Interest rate swap fees		12,251			12,185				66			1
BOLI		5,149			806				4,343			NM
Administrative services		5,599			6,713				(1,114	)		(17	)
Foreign currency remeasurement gains		1,059			292				767			NM
Early pay-offs of leases		1,184			694				490			71
Miscellaneous		62,106			47,034				15,072			32
Total Other		87,348			67,724				19,624			29
Total Non-Interest Income	$	434,106		$	461,053			$	(26,947	)		(6	)%

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

TABLE 16: NON-INTEREST EXPENSE

	Three Months Ended																	Q4 2023 compared to Q3 2023							Q4 2023 compared to Q4 2022
	Dec 31,				Sep 30,			Jun 30,			Mar 31,				Dec 31,
(Dollars in thousands)		2023			2023			2023			2023				2022			$ Change				% Change			$ Change				% Change
Salaries and employee benefits:
Salaries	$	111,484			$	111,303		$	107,671		$	108,354			$	100,232		$	181			0	%		$	11,252			11	%
Commissions and incentive compensation		48,974				48,817			44,511			39,799				49,546			157			0				(572	)		(1	)
Benefits		33,513				32,218			32,741			28,628				30,553			1,295			4				2,960			10
Total salaries and employee benefits		193,971				192,338			184,923			176,781				180,331			1,633			1				13,640			8
Software and equipment		27,779				25,951			26,205			24,697				24,699			1,828			7				3,080			12
Operating lease equipment		10,694				12,020			9,816			9,833				10,078			(1,326	)		(11	)			616			6
Occupancy, net		18,102				21,304			19,176			18,486				17,763			(3,202	)		(15	)			339			2
Data processing		8,892				10,773			9,726			9,409				7,927			(1,881	)		(17	)			965			12
Advertising and marketing		17,166				18,169			17,794			11,946				14,279			(1,003	)		(6	)			2,887			20
Professional fees		8,768				8,887			8,940			8,163				9,267			(119	)		(1	)			(499	)		(5	)
Amortization of other acquisition-related intangible assets		1,356				1,408			1,499			1,235				1,436			(52	)		(4	)			(80	)		(6	)
FDIC insurance		43,677				9,748			9,008			8,669				6,775			33,929			NM				36,902			NM
OREO expense, net		(1,559	)			120			118			(207	)			369			(1,679	)		NM				(1,928	)		NM
Other:
Lending expenses, net of deferred origination costs		5,330				4,777			7,890			3,099				4,952			553			12				378			8
Travel and entertainment		5,754				5,449			5,401			4,590				5,681			305			6				73			1
Miscellaneous		22,722				19,111			20,127			22,468				24,279			3,611			19				(1,557	)		(6	)
Total other		33,806				29,337			33,418			30,157				34,912			4,469			15				(1,106	)		(3	)
Total Non-Interest Expense	$	362,652			$	330,055		$	320,623		$	299,169			$	307,836		$	32,597			10	%		$	54,816			18	%

		Years Ended
		Dec 31,				Dec 31,			$				%
(Dollars in thousands)			2023				2022		Change				Change
Salaries and employee benefits:
Salaries		$	438,812			$	382,181		$	56,631			15	%
Commissions and incentive compensation			182,101				197,873			(15,772	)		(8	)
Benefits			127,100				116,053			11,047			10
Total salaries and employee benefits			748,013				696,107			51,906			7
Software and equipment			104,632				95,885			8,747			9
Operating lease equipment			42,363				38,008			4,355			11
Occupancy, net			77,068				70,965			6,103			9
Data processing			38,800				31,209			7,591			24
Advertising and marketing			65,075				59,418			5,657			10
Professional fees			34,758				33,088			1,670			5
Amortization of other acquisition-related intangible assets			5,498				6,116			(618	)		(10	)
FDIC insurance			71,102				28,639			42,463			NM
OREO expense, net			(1,528	)			(140	)		(1,388	)		NM
Other:
Lending expenses, net of deferred origination costs			21,096				20,576			520			3
Travel and entertainment			21,194				16,506			4,688			28
Miscellaneous			84,428				80,894			3,534			4
Total other			126,718				117,976			8,742			7
Total Non-Interest Expense		$	1,312,499			$	1,177,271		$	135,228			11	%

NM - Not meaningful.

TABLE 17: SUPPLEMENTAL NON-GAAP FINANCIAL MEASURES/RATIOS

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

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

	Three Months Ended																			Years Ended
	Dec 31,				Sep 30,				Jun 30,				Mar 31,				Dec 31,			Dec 31,				Dec 31,
(Dollars and shares in thousands)		2023				2023				2023				2023				2022			2023				2022
Reconciliation of Non-GAAP Net Interest Margin and Efficiency Ratio:
(A) Interest Income (GAAP)	$	793,848			$	762,400			$	697,176			$	639,690			$	580,745		$	2,893,114			$	1,747,443
Taxable-equivalent adjustment:
- Loans		2,150				1,923				1,882				1,872				1,594			7,827				3,619
- Liquidity Management Assets		575				572				551				551				538			2,249				1,977
- Other Earning Assets		4				1				1				4				1			10				5
(B) Interest Income (non-GAAP)	$	796,577			$	764,896			$	699,610			$	642,117			$	582,878		$	2,903,200			$	1,753,044
(C) Interest Expense (GAAP)		323,874				300,042				249,639				181,695				123,929			1,055,250				252,081
(D) Net Interest Income (GAAP) (A minus C)	$	469,974			$	462,358			$	447,537			$	457,995			$	456,816		$	1,837,864			$	1,495,362
(E) Net Interest Income (non-GAAP) (B minus C)	$	472,703			$	464,854			$	449,971			$	460,422			$	458,949		$	1,847,950			$	1,500,963
Net interest margin (GAAP)		3.62	%			3.60	%			3.64	%			3.81	%			3.71	%		3.66	%			3.15	%
Net interest margin, fully taxable-equivalent (non-GAAP)		3.64				3.62				3.66				3.83				3.73			3.68				3.17
(F) Non-interest income	$	100,829			$	112,478			$	113,030			$	107,769			$	93,839		$	434,106			$	461,053
(G) (Losses) gains on investment securities, net		2,484				(2,357	)			0				1,398				(6,745	)		1,525				(20,427	)
(H) Non-interest expense		362,652				330,055				320,623				299,169				307,836			1,312,499				1,177,271
Efficiency ratio (H/(D+F-G))		63.81	%			57.18	%			57.20	%			53.01	%			55.23	%		57.81	%			59.55	%
Efficiency ratio (non-GAAP) (H/(E+F-G))		63.51				56.94				56.95				52.78				55.02			57.55				59.38
	Three Months Ended																			Year Ended
	Dec 31,				Sep 30,				Jun 30,				Mar 31,				Dec 31,			Dec 31,				Dec 31,
(Dollars and shares in thousands)		2023				2023				2023				2023				2022			2023				2022
Reconciliation of Non-GAAP Tangible Common Equity Ratio:
Total shareholders’ equity (GAAP)	$	5,399,526			$	5,015,613			$	5,041,912			$	5,015,506			$	4,796,838
Less: Non-convertible preferred stock (GAAP)		(412,500	)			(412,500	)			(412,500	)			(412,500	)			(412,500	)
Less: Intangible assets (GAAP)		(679,561	)			(680,353	)			(682,327	)			(674,538	)			(675,710	)
(I) Total tangible common shareholders’ equity (non-GAAP)	$	4,307,465			$	3,922,760			$	3,947,085			$	3,928,468			$	3,708,628
(J) Total assets (GAAP)	$	56,259,934			$	55,555,246			$	54,286,176			$	52,873,511			$	52,949,649
Less: Intangible assets (GAAP)		(679,561	)			(680,353	)			(682,327	)			(674,538	)			(675,710	)
(K) Total tangible assets (non-GAAP)	$	55,580,373			$	54,874,893			$	53,603,849			$	52,198,973			$	52,273,939
Common equity to assets ratio (GAAP) (L/J)		8.9	%			8.3	%			8.5	%			8.7	%			8.3	%
Tangible common equity ratio (non-GAAP) (I/K)		7.7				7.1				7.4				7.5				7.1

Reconciliation of Non-GAAP Tangible Book Value per Common Share:
Total shareholders’ equity	$	5,399,526			$	5,015,613			$	5,041,912			$	5,015,506			$	4,796,838
Less: Preferred stock		(412,500	)			(412,500	)			(412,500	)			(412,500	)			(412,500	)
(L) Total common equity	$	4,987,026			$	4,603,113			$	4,629,412			$	4,603,006			$	4,384,338
(M) Actual common shares outstanding		61,244				61,222				61,198				61,176				60,794
Book value per common share (L/M)	$	81.43			$	75.19			$	75.65			$	75.24			$	72.12
Tangible book value per common share (non-GAAP) (I/M)		70.33				64.07				64.50				64.22				61.00
Reconciliation of Non-GAAP Return on Average Tangible Common Equity:
(N) Net income applicable to common shares	$	116,489			$	157,207			$	147,759			$	173,207			$	137,826		$	594,662			$	481,718
Add: Intangible asset amortization		1,356				1,408				1,499				1,235				1,436			5,498				6,116
Less: Tax effect of intangible asset amortization		(343	)			(380	)			(402	)			(321	)			(370	)		(1,446	)			(1,664	)
After-tax intangible asset amortization	$	1,013			$	1,028			$	1,097			$	914			$	1,066		$	4,052			$	4,452
(O) Tangible net income applicable to common shares (non-GAAP)	$	117,502			$	158,235			$	148,856			$	174,121			$	138,892		$	598,714			$	486,170
Total average shareholders’ equity	$	5,066,196			$	5,083,883			$	5,044,718			$	4,895,271			$	4,710,856		$	5,023,153			$	4,634,224
Less: Average preferred stock		(412,500	)			(412,500	)			(412,500	)			(412,500	)			(412,500	)		(412,500	)			(412,500	)
(P) Total average common shareholders’ equity	$	4,653,696			$	4,671,383			$	4,632,218			$	4,482,771			$	4,298,356		$	4,610,653			$	4,221,724
Less: Average intangible assets		(679,812	)			(681,520	)			(682,561	)			(675,247	)			(676,371	)		(679,802	)			(679,735	)
(Q) Total average tangible common shareholders’ equity (non-GAAP)	$	3,973,884			$	3,989,863			$	3,949,657			$	3,807,524			$	3,621,985		$	3,930,851			$	3,541,989
Return on average common equity, annualized (N/P)		9.93	%			13.35	%			12.79	%			15.67	%			12.72	%		12.90	%			11.41	%
Return on average tangible common equity, annualized (non-GAAP) (O/Q)		11.73				15.73				15.12				18.55				15.21			15.23				13.73
Reconciliation of Non-GAAP Pre-Tax, Pre-Provision Income:
Income before taxes	$	165,243			$	224,858			$	211,430			$	243,550			$	195,173		$	845,081			$	700,555
Add: Provision for credit losses		42,908				19,923				28,514				23,045				47,646			114,390				78,589
Pre-tax income, excluding provision for credit losses (non-GAAP)	$	208,151			$	244,781			$	239,944			$	266,595			$	242,819		$	959,471			$	779,144

	Dec 31,				Dec 31,				Dec 31,				Dec 31,				Dec 31,				Dec 31,				Dec 31,				Dec 31,				Dec 31,
		2021				2020				2019				2018				2017				2016				2015				2014				2013
Reconciliation of Non-GAAP Tangible Book Value per Common Share:
Total shareholders’ equity	$	4,498,688			$	4,115,995			$	3,691,250			$	3,267,570			$	2,976,939			$	2,695,617			$	2,352,274			$	2,069,822			$	1,900,589
Less: Non-convertible preferred stock (GAAP)		(412,500	)			(412,500	)			(125,000	)			(125,000	)			(125,000	)			(251,257	)			(251,287	)			(126,467	)			(126,477	)
(R) Less: Intangible assets (GAAP)		(683,456	)			(681,747	)			(692,277	)			(622,565	)			(519,505	)			(520,438	)			(495,970	)			(424,445	)			(393,760	)
(I) Total tangible common shareholders’ equity (non-GAAP)	$	3,402,732			$	3,021,748			$	2,873,973			$	2,520,005			$	2,332,434			$	1,923,922			$	1,605,017			$	1,518,910			$	1,380,352
(M) Common shares used for book value calculation		57,054				56,770				57,822				56,408				55,965				51,881				48,383				46,805				46,117
Book value per common share ((I-R)/M)	$	71.62			$	65.24			$	61.68			$	55.71			$	50.96			$	47.11			$	43.42			$	41.52			$	38.47
Tangible book value per common share (non-GAAP) (I/M)		59.64				53.23				49.70				44.67				41.68				37.08				33.17				32.45				29.93

WINTRUST SUBSIDIARIES AND LOCATIONS

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

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

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

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

FORWARD-LOOKING STATEMENTS

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

• economic conditions and events that affect the economy, housing prices, the job market and other factors that may adversely affect the Company’s liquidity and the performance of its loan portfolios, including an actual or threatened U.S. government debt default or rating downgrade, particularly in the markets in which it operates;
• negative effects suffered by us or our customers resulting from changes in U.S. trade policies;
• the extent of defaults and losses on the Company’s loan portfolio, which may require further increases in its allowance for credit losses;
• estimates of fair value of certain of the Company’s assets and liabilities, which could change in value significantly from period to period;
• the financial success and economic viability of the borrowers of our commercial loans;
• commercial real estate market conditions in the Chicago metropolitan area and southern Wisconsin;
• the extent of commercial and consumer delinquencies and declines in real estate values, which may require further increases in the Company’s allowance for credit losses;
• inaccurate assumptions in our analytical and forecasting models used to manage our loan portfolio;
• changes in the level and volatility of interest rates, the capital markets and other market indices that may affect, among other things, the Company’s liquidity and the value of its assets and liabilities;
• the interest rate environment, including a prolonged period of low interest rates or rising interest rates, either broadly or for some types of instruments, which may affect the Company’s net interest income and net interest margin, and which could materially adversely affect the Company’s profitability;
• competitive pressures in the financial services business which may affect the pricing of the Company’s loan and deposit products as well as its services (including wealth management services), which may result in loss of market share and reduced income from deposits, loans, advisory fees and income from other products;
• failure to identify and complete favorable acquisitions in the future or unexpected difficulties or developments related to the integration of the Company’s recent or future acquisitions;
• unexpected difficulties and losses related to FDIC-assisted acquisitions;
• harm to the Company’s reputation;
• any negative perception of the Company’s financial strength;
• ability of the Company to raise additional capital on acceptable terms when needed;
• disruption in capital markets, which may lower fair values for the Company’s investment portfolio;
• ability of the Company to use technology to provide products and services that will satisfy customer demands and create efficiencies in operations and to manage risks associated therewith;
• failure or breaches of our security systems or infrastructure, or those of third parties;
• security breaches, including denial of service attacks, hacking, social engineering attacks, malware intrusion and similar events or data corruption attempts and identity theft;
• adverse effects on our information technology systems, 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, and ability of the Company to effectively manage the transition of the chief executive officer role;
• environmental liability risk associated with lending activities;
• the impact of any claims or legal actions to which the Company is subject, including any effect on our reputation;
• losses incurred in connection with repurchases and indemnification payments related to mortgages and increases in reserves associated therewith;
• the loss of customers as a result of technological changes allowing consumers to complete their financial transactions without the use of a bank;
• the soundness of other financial institutions and the impact of recent failures of financial institutions, including broader financial institution liquidity risk and concerns;
• the expenses and delayed returns inherent in opening new branches and de novo banks;
• liabilities, potential customer loss or reputational harm related to closings of existing branches;
• examinations and challenges by tax authorities, and any unanticipated impact of the Tax Act;
• changes in accounting standards, rules and interpretations, and the impact on the Company’s financial statements;
• the ability of the Company to receive dividends from its subsidiaries;
• the 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;
• widespread outages of operational, communication, or other systems, whether internal or provided by third parties, natural or other disasters (including acts of terrorism, armed hostilities and pandemics), and the effects of climate change could have an adverse effect on the Company’s financial condition and results of operations, lead to material disruption of the Company’s operations or the ability or willingness of clients to access the Company’s products and services; and
• the severity, magnitude and duration of the COVID-19 pandemic, including the continued emergence of variant strains, and the direct and indirect impact of such pandemic, as well as responses to the pandemic by the government, businesses and consumers, on the economy, our financial results, operations and personnel, commercial activity and demand across our business and our customers’ businesses.
  

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

CONFERENCE CALL, WEBCAST AND REPLAY

The Company will hold a conference call on Thursday, January 18, 2024 at 10:00 a.m. (CST) regarding fourth quarter and full year 2023 earnings results. Individuals interested in participating in the call by addressing questions to management should register for the call to receive the dial-in numbers and unique PIN at the Conference Call Link included within the Company’s press release dated January 2, 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 fourth quarter and full year 2023 earnings press release will also be available on the home page of the Company’s website at https://www.wintrust.com and at the Investor Relations, Investor News and Events, Press Releases link on its website.

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