Wintrust Financial Corporation Reports Record First Quarter 2024 Net Income

April 17, 2024

ROSEMONT, Ill., April 17, 2024 (GLOBE NEWSWIRE) — Wintrust Financial Corporation (“Wintrust”, “the Company”, “we” or “our”) (Nasdaq: WTFC) announced record quarterly net income of $187.3 million or $2.89 per diluted common share for the first quarter of 2024, an increase in diluted earnings per common share of 55% compared to the fourth quarter of 2023. Pre-tax, pre-provision income (non-GAAP) totaled a record $271.6 million, up 30% as compared to $208.2 million in the fourth quarter of 2023.

Timothy S. Crane, President and Chief Executive Officer, commented, “Following record net income in 2023, we continued our momentum with strong results to start 2024. We leveraged our balanced, multi-faceted business model and position as Chicago’s and Wisconsin’s bank to grow deposits and loans while maintaining our consistent credit standards coupled with expense management.”

Additionally, Mr. Crane noted, “The first quarter exhibited funding strong loan growth with competitively-priced deposits in accordance with the increased loan demand. Increasing our long-term franchise value and net interest income remains our focus as we consider opportunities in the markets we serve.”

Highlights of the first quarter of 2024:
Comparative information to the fourth quarter of 2023, unless otherwise noted

Total loans increased by approximately $1.1 billion, or 10% annualized.
Total deposits increased by approximately $1.1 billion, or 9% annualized.
Total assets increased by $1.3 billion, or 9% annualized.
Net interest margin decreased by five basis points to 3.57% (3.59% on a fully taxable-equivalent basis, non-GAAP) during the first quarter of 2024.
- Net interest income decreased to $464.2 million in the first quarter of 2024 compared to $470.0 million in the fourth quarter of 2023, primarily due to one less day in the first quarter of 2024.
Non-interest income was impacted by the following:
- Gains of approximately $20.0 million from the sale of the Company’s Retirement Benefits Advisors (“RBA”) division. This gain was partially offset by additional commissions and incentive compensation totaling $701,000 related to the sale transaction.
- Favorable net valuation adjustments related to certain mortgage assets totaled $2.3 million in the first quarter of 2024 compared to unfavorable net valuation adjustments of $9.7 million in the fourth quarter of 2023.
Non-interest expense was negatively impacted by an accrual of $5.2 million for estimated amounts owed as a result of the FDIC special assessment on uninsured deposits in response to certain bank failures occurring in 2023. This is in addition to the related $34.4 million accrued in the fourth quarter of 2023 for the estimate of such FDIC special assessments.
Provision for credit losses totaled $21.7 million in the first quarter of 2024 as compared to a provision for credit losses of $42.9 million in the fourth quarter of 2023.
Net charge-offs totaled $21.8 million, or 21 basis points of average total loans on an annualized basis, in the first quarter of 2024 as compared to $14.9 million, or 14 basis points of average total loans on an annualized basis in the fourth quarter of 2023.

Mr. Crane noted, “Our net interest margin for the first quarter stayed within our expected range, decreasing by five basis points compared to the fourth quarter of 2023. The decrease in net interest margin was due primarily to certain seasonal declines in non-interest bearing deposit balances, deposit migration to interest-bearing products and competitive deposit pricing to fund quality loan growth. Loan growth during the first quarter totaled $1.1 billion, or 10% on an annualized basis. We are pleased with our diversified loan growth in the first quarter with strong loan origination activity in commercial and residential real estate portfolios, as well as growth in commercial real estate driven primarily by draws on existing loan facilities. Deposit growth in the first quarter of 2024 was utilized to fund our robust loan growth as deposits increased by approximately $1.1 billion, or 9% on an annualized basis. We continue to leverage our customer relationships and market positioning to generate deposits and build long term franchise value. Non-interest bearing deposits decreased due to seasonality during the first quarter while also experiencing some migration to interest-bearing products. Despite the slightly lower net interest income during the current period, we generated record quarterly net revenue through our diversified sources of revenue, including our mortgage banking and wealth management businesses.”

Commenting on credit quality, Mr. Crane stated, “Credit metrics have remained steady, aligning with historical averages. Net charge-offs totaled $21.8 million, or 21 basis points of average total loans on an annualized basis, in the first quarter of 2024 as compared to $14.9 million, or 14 basis points of average total loans on an annualized basis, in the fourth quarter of 2023. Approximately $11.9 million of charge-offs in the current quarter were previously reserved for in the fourth quarter of 2023 Non-performing loans totaled $148.4 million, or 0.34% of total loans, at the end of the first quarter of 2024 compared to $139.0 million, or 0.33% of total loans, at the end of the fourth quarter of 2023. We continue to conservatively and proactively review credit and maintain our consistently strong credit standards. The allowance for credit losses on our core loan portfolio as of March 31, 2024 was approximately 1.51% of the outstanding balance (see Table 11 for additional information). We believe that the Company’s reserves remain appropriate and we remain diligent in our review of credit.”

Mr. Crane added, “Late loan growth in the first quarter creates positive revenue momentum moving forward as period-end loan balances exceeded averages. We continue to see good opportunities in the markets we serve and feel well positioned to grow deposit and loan relationships in future quarters. Our focus remains on winning business and maximizing long term franchise value.”

In summary, Mr. Crane noted, “The quarter was strong, momentum remains good and we are excited about the agreement reached to acquire Macatawa Bank Corporation in Michigan (announced April 15, 2024). The ability to expand with a high quality bank with a strong low-cost core deposit base, excess liquidity, exceptional asset quality and a committed management team is a terrific fit for Wintrust.”

The graphs below illustrate certain financial highlights of the first quarter of 2024 as well as historical financial performance. See “Supplemental Non-GAAP Financial Measures/Ratios” at Table 16 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/813fc027-da7e-4253-a341-e3d12f08e2d6

SUMMARY OF RESULTS:

BALANCE SHEET

Total assets increased $1.3 billion in the first quarter of 2024 as compared to the fourth quarter of 2023. Total loans increased by $1.1 billion as compared to the fourth quarter of 2023. The increase in loans was the result of diversified loan growth primarily across the commercial and residential real estate portfolios coupled with draws on existing commercial real-estate loan facilities.

Total liabilities increased by $1.3 billion in the first quarter of 2024 as compared to the fourth quarter of 2023 primarily due to a $1.1 billion increase in total deposits. Non-interest bearing deposits as a percentage of total deposits was 21% at March 31, 2024 compared to 23% at December 31, 2023. The Company’s loans to deposits ratio ended the quarter at 93.1%.

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 first quarter of 2024, net interest income totaled $464.2 million, a decrease of $5.8 million as compared to the fourth quarter of 2023. The $5.8 million decrease in net interest income in the first quarter of 2024 compared to the fourth quarter of 2023 was primarily due to one less day during the period as well as a five basis point decrease in the net interest margin, partially offset by a $755.8 million increase in average earning assets.

Net interest margin was 3.57% (3.59% on a fully taxable-equivalent basis, non-GAAP) during the first quarter of 2024 compared to 3.62% (3.64% on a fully taxable-equivalent basis, non-GAAP) during the fourth quarter of 2023. The net interest margin decrease as compared to the fourth quarter of 2023 was primarily due to a 15 basis point increase in the rate paid on interest-bearing liabilities. This decrease was partially offset by a nine basis point increase in yield on earning assets and a one basis point increase in the net free funds contribution. The 15 basis point increase on the rate paid on interest-bearing liabilities in the first quarter of 2024 as compared to the fourth quarter of 2023 was primarily due to a 16 basis point increase in the rate paid on interest-bearing deposits. The nine basis point increase in the yield on earning assets in the first quarter of 2024 as compared to the fourth quarter of 2023 was primarily due to an 11 basis point expansion on loan yields.

For more information regarding net interest income, see Table 4 through Table 7 in this report.

ASSET QUALITY

The allowance for credit losses totaled $427.5 million as of March 31, 2024, relatively unchanged compared to $427.6 million as of December 31, 2023. A provision for credit losses totaling $21.7 million was recorded for the first quarter of 2024 as compared to $42.9 million recorded in the fourth quarter of 2023. For more information regarding the allowance for credit losses and provision for credit losses, see Table 10 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 March 31, 2024, December 31, 2023, and September 30, 2023 is shown on Table 11 of this report.

Net charge-offs totaled $21.8 million in the first quarter of 2024, as compared to $14.9 million of net charge-offs in the fourth quarter of 2023. The increase in net charge-offs during the first quarter of 2024 was primarily the result of increased net charge-offs within the commercial portfolio. Net charge-offs as a percentage of average total loans were 21 basis points in the first quarter of 2024 on an annualized basis compared to 14 basis points on an annualized basis in the fourth quarter of 2023. For more information regarding net charge-offs, see Table 9 in this report.

The Company’s delinquency rates remain low and manageable. For more information regarding past due loans, see Table 12 in this report.

Non-performing assets totaled $162.9 million and comprised 0.28% of total assets as of March 31, 2024, as compared to $152.3 million as of December 31, 2023. Non-performing loans totaled $148.4 million, or 0.34% of total loans, at March 31, 2024. The increase in the first quarter of 2024 was primarily due to an increase in certain credits within the commercial real estate portfolio becoming nonaccrual as well as increases within the property and casualty insurance premium finance receivables portfolio, partially offset by a decrease within the commercial portfolio. For more information regarding non-performing assets, see Table 13 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 first quarter of 2024.

NON-INTEREST INCOME

Wealth management revenue increased by $1.5 million in the first quarter of 2024 as compared to the fourth quarter of 2023 primarily due to increased asset management fees from higher assets under management during the period. Wealth management revenue is comprised of the trust and asset management revenue of The Chicago Trust Company and Great Lakes Advisors, the brokerage commissions, managed money fees and insurance product commissions at Wintrust Investments and fees from tax-deferred like-kind exchange services provided by the Chicago Deferred Exchange Company.

Mortgage banking revenue increased by $20.2 million in the first quarter of 2024 as compared to the fourth quarter of 2023 primarily due to a $5.0 million favorable valuation adjustment to the fair value of mortgage servicing rights, net of servicing hedge, in the first quarter of 2024 compared to a $16.1 million unfavorable adjustment in the fourth quarter of 2023, as well as $6.6 million higher in production revenue. This was partially offset by an unfavorable 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 $2.2 million in the first quarter of 2024 compared to a $4.9 million favorable adjustment in the fourth 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 $1.3 million in net gains on investment securities in the first quarter of 2024 as compared to $2.5 million in net gains in the fourth quarter of 2023. The change from period to period was primarily the result of lower unrealized gains on the Company’s equity investment securities with a readily determinable fair value, partially offset by higher realized gains from the liquidation of an equity investment security without a readily determinable fair value in the first quarter of 2024.

Fluctuations in trading gains and losses in the first quarter of 2024 compared to the fourth quarter of 2023 were primarily the result of fair value adjustments related to interest rate derivatives not designated as hedges.

Other income increased by $17.6 million in the first quarter of 2024 compared to the fourth quarter of 2023 primarily due to a $20.0 million gain recognized related to the sale of the Company’s RBA division within its wealth management business. This was partially offset by an unfavorable 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 $2.1 million when compared to the fourth quarter of 2023, as well as lower interest rate swap fees and unfavorable foreign currency remeasurement adjustments.

For more information regarding non-interest income, see Table 14 in this report.

NON-INTEREST EXPENSE

Salaries and employee benefits expense increased by $1.2 million in the first quarter of 2024 as compared to the fourth quarter of 2023. The $1.2 million increase is primarily related to higher commissions from increased mortgage production as well as commissions related to the sale of the Company’s RBA division within its wealth management business in the first quarter of 2024. This was partially offset by lower employee benefits as employee insurance decreased in the first quarter of 2024.

Advertising and marketing expenses in the first quarter of 2024 totaled $13.0 million, which is a $4.1 million decrease as compared to the fourth quarter of 2023 primarily due to a decrease in digital advertising and sponsorships.

FDIC insurance, including amounts accrued for estimated special assessments, decreased $29.1 million in the first quarter of 2024 as compared to the fourth quarter of 2023. This was primarily the result of a lower accrual recognized in the first quarter of 2024 for estimated amounts owed as a result of the FDIC special assessment on uninsured deposits in response to certain bank failures occurring in 2023. The Company recognized $5.2 million in the first quarter of 2024 for such special assessment compared to $34.4 million in the fourth quarter of 2023.

The Company recorded OREO expense of $392,000 in the first quarter of 2024, compared to net OREO income of $1.6 million in the fourth quarter of 2023 related to realized gains on sales of OREO.

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

INCOME TAXES

The Company recorded income tax expense of $62.7 million in the first quarter of 2024 compared to $41.8 million in the fourth quarter of 2023. The effective tax rates were 25.07% in the first quarter of 2024 compared to 25.27% in the fourth quarter of 2023. The effective tax rates were partially impacted by the tax effects related to share-based compensation which fluctuate based on the Company’s stock price and timing of employee stock option exercises and vesting of other share-based awards. The Company recorded net excess tax benefits of $4.4 million in the first quarter of 2024, compared to net excess tax benefits of $53,000 in the fourth quarter of 2023 related to share-based compensation. The effective tax rates were also partially impacted due to an overall lower level of pre-tax net income in the comparable periods, primarily due to the accrual for the estimated amount owed as a result of the FDIC special assessment on uninsured deposits. The Company recorded an estimated FDIC special assessment accrual of $5.2 million in the first quarter of 2024, compared to a $34.4 million accrual in the fourth quarter of 2023.

BUSINESS UNIT SUMMARY

Community Banking

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

Mortgage banking revenue was $27.7 million for the first quarter of 2024, an increase of $20.2 million as compared to the fourth quarter of 2023, primarily due to a $5.0 million favorable valuation adjustment to the fair value of mortgage servicing rights, net of servicing hedge, in the first quarter of 2024 compared to a $16.1 million unfavorable adjustment in the fourth quarter of 2023, as well as $6.6 million higher in production revenue. This was partially offset by an unfavorable 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 $2.2 million in the first quarter of 2024 compared to a $4.9 million favorable adjustment in the fourth quarter of 2023. Service charges on deposit accounts totaled $14.8 million in the first quarter of 2024, which was relatively stable compared to the fourth quarter of 2023. The Company’s gross commercial and commercial real estate loan pipelines remained solid as of March 31, 2024 indicating momentum for expected continued loan growth in the second 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 first quarter of 2024 and average balances increased by $12.5 million as compared to the fourth quarter of 2023. The Company’s leasing portfolio balance increased in the first quarter of 2024, with its portfolio of assets, including capital leases, loans and equipment on operating leases, totaling $3.6 billion as of March 31, 2024 as compared to $3.4 billion as of December 31, 2023. Revenues from the Company’s out-sourced administrative services business were $1.2 million in the first quarter of 2024, which was relatively stable compared to the fourth 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, and securities brokerage services. See “Items Impacting Comparative Results,” regarding the sale of the RBA division during the first quarter of 2024. Wealth management revenue totaled $34.8 million in the first quarter of 2024, increasing $1.5 million in the first quarter of 2024 as compared to the fourth quarter of 2023 primarily due to increased asset management fees from higher assets under management during the period. At March 31, 2024, the Company’s wealth management subsidiaries had approximately $48.7 billion of assets under administration, which included $8.8 billion of assets owned by the Company and its subsidiary banks, representing an increase from the $47.1 billion of assets under administration at December 31, 2023.

ITEMS IMPACTING COMPARATIVE FINANCIAL RESULTS

Division Sale

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

Business Combination

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

WINTRUST FINANCIAL CORPORATION

Key Operating Measures

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

										% or ⁽¹⁾ basis point (bp) change from 4th Quarter 2023			% or basis point (bp) change from 1st Quarter 2023
	Three Months Ended
(Dollars in thousands, except per share data)	Mar 31, 2024			Dec 31, 2023			Mar 31, 2023
Net income	$	187,294		$	123,480		$	180,198		52		%	4		%
Pre-tax income, excluding provision for credit losses (non-GAAP) ⁽²⁾		271,629			208,151			266,595		30			2
Net income per common share – Diluted		2.89			1.87			2.80		55			3
Cash dividends declared per common share		0.45			0.40			0.40		13			13
Net revenue ⁽³⁾		604,774			570,803			565,764		6			7
Net interest income		464,194			469,974			457,995		(1	)		1
Net interest margin		3.57	%		3.62	%		3.81	%	(5	)	bps	(24	)	bps
Net interest margin – fully taxable-equivalent (non-GAAP) ⁽²⁾		3.59			3.64			3.83		(5	)		(24	)
Net overhead ratio ⁽⁴⁾		1.39			1.89			1.49		(50	)		(10	)
Return on average assets		1.35			0.89			1.40		46			(5	)
Return on average common equity		14.42			9.93			15.67		449			(125	)
Return on average tangible common equity (non-GAAP) ⁽²⁾		16.75			11.73			18.55		502			(180	)
At end of period
Total assets	$	57,576,933		$	56,259,934		$	52,873,511		9		%	9		%
Total loans ⁽⁵⁾		43,230,706			42,131,831			39,565,471		10			9
Total deposits		46,448,858			45,397,170			42,718,211		9			9
Total shareholders’ equity		5,436,400			5,399,526			5,015,506		3			8

(1) Period-end balance sheet percentage changes are annualized.

(2) See Table 16: 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
(Dollars in thousands, except per share data)	Mar 31, 2024			Dec 31, 2023			Sep 30, 2023			Jun 30, 2023			Mar 31, 2023
Selected Financial Condition Data (at end of period):
Total assets	$	57,576,933		$	56,259,934		$	55,555,246		$	54,286,176		$	52,873,511
Total loans ⁽¹⁾		43,230,706			42,131,831			41,446,032			41,023,408			39,565,471
Total deposits		46,448,858			45,397,170			44,992,686			44,038,707			42,718,211
Total shareholders’ equity		5,436,400			5,399,526			5,015,613			5,041,912			5,015,506
Selected Statements of Income Data:
Net interest income	$	464,194		$	469,974		$	462,358		$	447,537		$	457,995
Net revenue ⁽²⁾		604,774			570,803			574,836			560,567			565,764
Net income		187,294			123,480			164,198			154,750			180,198
Pre-tax income, excluding provision for credit losses (non-GAAP) ⁽³⁾		271,629			208,151			244,781			239,944			266,595
Net income per common share – Basic		2.93			1.90			2.57			2.41			2.84
Net income per common share – Diluted		2.89			1.87			2.53			2.38			2.80
Cash dividends declared per common share		0.45			0.40			0.40			0.40			0.40
Selected Financial Ratios and Other Data:
Performance Ratios:
Net interest margin		3.57	%		3.62	%		3.60	%		3.64	%		3.81	%
Net interest margin – fully taxable-equivalent (non-GAAP) ⁽³⁾		3.59			3.64			3.62			3.66			3.83
Non-interest income to average assets		1.02			0.73			0.82			0.86			0.84
Non-interest expense to average assets		2.41			2.62			2.41			2.44			2.33
Net overhead ratio ⁽⁴⁾		1.39			1.89			1.59			1.58			1.49
Return on average assets		1.35			0.89			1.20			1.18			1.40
Return on average common equity		14.42			9.93			13.35			12.79			15.67
Return on average tangible common equity (non-GAAP) ⁽³⁾		16.75			11.73			15.73			15.12			18.55
Average total assets	$	55,602,695		$	55,017,075		$	54,381,981		$	52,601,953		$	52,075,318
Average total shareholders’ equity		5,440,457			5,066,196			5,083,883			5,044,718			4,895,271
Average loans to average deposits ratio		94.5	%		92.9	%		92.4	%		94.3	%		93.0	%
Period-end loans to deposits ratio		93.1			92.8			92.1			93.2			92.6
Common Share Data at end of period:
Market price per common share	$	104.39		$	92.75		$	75.50		$	72.62		$	72.95
Book value per common share		81.38			81.43			75.19			75.65			75.24
Tangible book value per common share (non-GAAP) ⁽³⁾		70.40			70.33			64.07			64.50			64.22
Common shares outstanding		61,736,715			61,243,626			61,222,058			61,197,676			61,176,415
Other Data at end of period:
Common equity to assets ratio		8.7	%		8.9	%		8.3	%		8.5	%		8.7	%
Tangible common equity ratio (non-GAAP) ⁽³⁾		7.6			7.7			7.1			7.4			7.5
Tier 1 leverage ratio ⁽⁵⁾		9.5			9.3			9.2			9.3			9.1
Risk-based capital ratios:
Tier 1 capital ratio ⁽⁵⁾		10.3			10.3			10.2			10.1			10.1
Common equity tier 1 capital ratio ⁽⁵⁾		9.5			9.4			9.3			9.3			9.2
Total capital ratio ⁽⁵⁾		12.2			12.1			12.0			12.0			12.1
Allowance for credit losses ⁽⁶⁾	$	427,504		$	427,612		$	399,531		$	387,786		$	376,261
Allowance for loan and unfunded lending-related commitment losses to total loans		0.99	%		1.01	%		0.96	%		0.94	%		0.95	%
Number of:
Bank subsidiaries		15			15			15			15			15
Banking offices		176			174			174			175			174

(1) Excludes mortgage loans held-for-sale.
(2) Net revenue is net interest income plus non-interest income.
(3) See Table 16: 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)
	Mar 31,			Dec 31,			Sep 30,			Jun 30,			Mar 31,
(In thousands)		2024			2023			2023			2023			2023
Assets
Cash and due from banks	$	379,825		$	423,404		$	418,088		$	513,858		$	445,928
Federal funds sold and securities purchased under resale agreements		61			60			60			59			58
Interest-bearing deposits with banks		2,131,077			2,084,323			2,448,570			2,163,708			1,563,578
Available-for-sale securities, at fair value		4,387,598			3,502,915			3,611,835			3,492,481			3,259,845
Held-to-maturity securities, at amortized cost		3,810,015			3,856,916			3,909,150			3,564,473			3,606,391
Trading account securities		2,184			4,707			1,663			3,027			102
Equity securities with readily determinable fair value		119,777			139,268			134,310			116,275			111,943
Federal Home Loan Bank and Federal Reserve Bank stock		224,657			205,003			204,040			195,117			244,957
Brokerage customer receivables		13,382			10,592			14,042			15,722			16,042
Mortgage loans held-for-sale, at fair value		339,884			292,722			304,808			338,728			302,493
Loans, net of unearned income		43,230,706			42,131,831			41,446,032			41,023,408			39,565,471
Allowance for loan losses		(348,612	)		(344,235	)		(315,039	)		(302,499	)		(287,972	)
Net loans		42,882,094			41,787,596			41,130,993			40,720,909			39,277,499
Premises, software and equipment, net		744,769			748,966			747,501			749,393			760,283
Lease investments, net		283,557			281,280			275,152			274,351			256,301
Accrued interest receivable and other assets		1,580,142			1,551,899			1,674,681			1,455,748			1,413,795
Trade date securities receivable		—			690,722			—			—			939,758
Goodwill		656,181			656,672			656,109			656,674			653,587
Other acquisition-related intangible assets		21,730			22,889			24,244			25,653			20,951
Total assets	$	57,576,933		$	56,259,934		$	55,555,246		$	54,286,176		$	52,873,511
Liabilities and Shareholders’ Equity
Deposits:
Non-interest-bearing	$	9,908,183		$	10,420,401		$	10,347,006		$	10,604,915		$	11,236,083
Interest-bearing		36,540,675			34,976,769			34,645,680			33,433,792			31,482,128
Total deposits		46,448,858			45,397,170			44,992,686			44,038,707			42,718,211
Federal Home Loan Bank advances		2,676,751			2,326,071			2,326,071			2,026,071			2,316,071
Other borrowings		575,408			645,813			643,999			665,219			583,548
Subordinated notes		437,965			437,866			437,731			437,628			437,493
Junior subordinated debentures		253,566			253,566			253,566			253,566			253,566
Accrued interest payable and other liabilities		1,747,985			1,799,922			1,885,580			1,823,073			1,549,116
Total liabilities		52,140,533			50,860,408			50,539,633			49,244,264			47,858,005
Shareholders’ Equity:
Preferred stock		412,500			412,500			412,500			412,500			412,500
Common stock		61,798			61,269			61,244			61,219			61,198
Surplus		1,954,532			1,943,806			1,933,226			1,923,623			1,913,947
Treasury stock		(5,757	)		(2,217	)		(1,966	)		(1,966	)		(1,966	)
Retained earnings		3,498,475			3,345,399			3,253,332			3,120,626			2,997,263
Accumulated other comprehensive loss		(485,148	)		(361,231	)		(642,723	)		(474,090	)		(367,436	)
Total shareholders’ equity		5,436,400			5,399,526			5,015,613			5,041,912			5,015,506
Total liabilities and shareholders’ equity	$	57,576,933		$	56,259,934		$	55,555,246		$	54,286,176		$	52,873,511

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

	Three Months Ended
(Dollars in thousands, except per share data)	Mar 31, 2024		Dec 31, 2023			Sep 30, 2023			Jun 30, 2023		Mar 31, 2023
Interest income
Interest and fees on loans	$	710,341	$	694,943		$	666,260		$	621,057	$	558,692
Mortgage loans held-for-sale		4,146		4,318			4,767			4,178		3,528
Interest-bearing deposits with banks		16,658		21,762			26,866			16,882		13,468
Federal funds sold and securities purchased under resale agreements		19		578			1,157			1		70
Investment securities		69,678		68,237			59,164			51,243		59,943
Trading account securities		18		15			6			6		14
Federal Home Loan Bank and Federal Reserve Bank stock		4,478		3,792			3,896			3,544		3,680
Brokerage customer receivables		175		203			284			265		295
Total interest income		805,513		793,848			762,400			697,176		639,690
Interest expense
Interest on deposits		299,532		285,390			262,783			213,495		144,802
Interest on Federal Home Loan Bank advances		22,048		18,316			17,436			17,399		19,135
Interest on other borrowings		9,248		9,557			9,384			8,485		7,854
Interest on subordinated notes		5,487		5,522			5,491			5,523		5,488
Interest on junior subordinated debentures		5,004		5,089			4,948			4,737		4,416
Total interest expense		341,319		323,874			300,042			249,639		181,695
Net interest income		464,194		469,974			462,358			447,537		457,995
Provision for credit losses		21,673		42,908			19,923			28,514		23,045
Net interest income after provision for credit losses		442,521		427,066			442,435			419,023		434,950
Non-interest income
Wealth management		34,815		33,275			33,529			33,858		29,945
Mortgage banking		27,663		7,433			27,395			29,981		18,264
Service charges on deposit accounts		14,811		14,522			14,217			13,608		12,903
Gains (losses) on investment securities, net		1,326		2,484			(2,357	)		0		1,398
Fees from covered call options		4,847		4,679			4,215			2,578		10,391
Trading gains (losses), net		677		(505	)		728			106		813
Operating lease income, net		14,110		14,162			13,863			12,227		13,046
Other		42,331		24,779			20,888			20,672		21,009
Total non-interest income		140,580		100,829			112,478			113,030		107,769
Non-interest expense
Salaries and employee benefits		195,173		193,971			192,338			184,923		176,781
Software and equipment		27,731		27,779			25,951			26,205		24,697
Operating lease equipment		10,683		10,694			12,020			9,816		9,833
Occupancy, net		19,086		18,102			21,304			19,176		18,486
Data processing		9,292		8,892			10,773			9,726		9,409
Advertising and marketing		13,040		17,166			18,169			17,794		11,946
Professional fees		9,553		8,768			8,887			8,940		8,163
Amortization of other acquisition-related intangible assets		1,158		1,356			1,408			1,499		1,235
FDIC insurance		14,537		43,677			9,748			9,008		8,669
OREO expenses, net		392		(1,559	)		120			118		(207	)
Other		32,500		33,806			29,337			33,418		30,157
Total non-interest expense		333,145		362,652			330,055			320,623		299,169
Income before taxes		249,956		165,243			224,858			211,430		243,550
Income tax expense		62,662		41,763			60,660			56,680		63,352
Net income	$	187,294	$	123,480		$	164,198		$	154,750	$	180,198
Preferred stock dividends		6,991		6,991			6,991			6,991		6,991
Net income applicable to common shares	$	180,303	$	116,489		$	157,207		$	147,759	$	173,207
Net income per common share – Basic	$	2.93	$	1.90		$	2.57		$	2.41	$	2.84
Net income per common share – Diluted	$	2.89	$	1.87		$	2.53		$	2.38	$	2.80
Cash dividends declared per common share	$	0.45	$	0.40		$	0.40		$	0.40	$	0.40
Weighted average common shares outstanding		61,481		61,236			61,213			61,192		60,950
Dilutive potential common shares		928		1,166			964			902		873
Average common shares and dilutive common shares		62,409		62,402			62,177			62,094		61,823

TABLE 1: LOAN PORTFOLIO MIX AND GROWTH RATES

											% Growth From
(Dollars in thousands)	Mar 31, 2024		Dec 31, 2023		Sep 30, 2023		Jun 30, 2023		Mar 31, 2023		Dec 31, 2023 ⁽¹⁾		Mar 31, 2023
Balance:
Mortgage loans held-for-sale, excluding early buy-out exercised loans guaranteed by U.S. government agencies	$	193,064	$	155,529	$	190,511	$	235,570	$	155,687	97	%	24	%
Mortgage loans held-for-sale, early buy-out exercised loans guaranteed by U.S. government agencies		146,820		137,193		114,297		103,158		146,806	28		0
Total mortgage loans held-for-sale	$	339,884	$	292,722	$	304,808	$	338,728	$	302,493	65	%	12	%

Core loans:
Commercial
Commercial and industrial	$	6,105,968	$	5,804,629	$	5,894,732	$	5,737,633	$	5,855,035	21	%	4	%
Asset-based lending		1,355,255		1,433,250		1,396,591		1,465,848		1,482,071	(22	)	(9	)
Municipal		721,526		677,143		676,915		653,117		655,301	26		10
Leases		2,344,295		2,208,368		2,109,628		1,925,767		1,904,137	25		23
PPP loans		11,036		11,533		13,744		15,337		17,195	(17	)	(36	)
Commercial real estate
Residential construction		57,558		58,642		51,550		51,689		69,998	(7	)	(18	)
Commercial construction		1,748,607		1,729,937		1,547,322		1,409,751		1,234,762	4		42
Land		344,149		295,462		294,901		298,996		292,293	66		18
Office		1,566,748		1,455,417		1,422,748		1,404,422		1,392,040	31		13
Industrial		2,190,200		2,135,876		2,057,957		2,002,740		1,858,088	10		18
Retail		1,366,415		1,337,517		1,341,451		1,304,083		1,309,680	9		4
Multi-family		2,922,432		2,815,911		2,710,829		2,696,478		2,635,411	15		11
Mixed use and other		1,437,328		1,515,402		1,519,422		1,440,652		1,446,806	(21	)	(1	)
Home equity		340,349		343,976		343,258		336,974		337,016	(4	)	1
Residential real estate
Residential real estate loans for investment		2,746,916		2,619,083		2,538,630		2,455,392		2,309,393	20		19
Residential mortgage loans, early buy-out eligible loans guaranteed by U.S. government agencies		90,911		92,780		97,911		117,024		119,301	(8	)	(24	)
Residential mortgage loans, early buy-out exercised loans guaranteed by U.S. government agencies		52,439		57,803		71,062		70,824		76,851	(37	)	(32	)
Total core loans	$	25,402,132	$	24,592,729	$	24,088,651	$	23,386,727	$	22,995,378	13	%	10	%

Niche loans:
Commercial
Franchise	$	1,122,302	$	1,092,532	$	1,074,162	$	1,091,164	$	1,131,913	11	%	(1	)%
Mortgage warehouse lines of credit		403,245		230,211		245,450		381,043		235,684	302		71
Community Advantage – homeowners association		475,832		452,734		424,054		405,042		389,922	21		22
Insurance agency lending		964,022		921,653		890,197		925,520		905,727	18		6
Premium Finance receivables
U.S. property & casualty insurance		6,113,993		5,983,103		5,815,346		5,900,228		5,043,486	9		21
Canada property & casualty insurance		826,026		920,426		907,401		862,470		695,394	(41	)	19
Life insurance		7,872,033		7,877,943		7,931,808		8,039,273		8,125,802	0		(3	)
Consumer and other		51,121		60,500		68,963		31,941		42,165	(62	)	21
Total niche loans	$	17,828,574	$	17,539,102	$	17,357,381	$	17,636,681	$	16,570,093	7	%	8	%

Total loans, net of unearned income	$	43,230,706	$	42,131,831	$	41,446,032	$	41,023,408	$	39,565,471	10	%	9	%

(1) Annualized.

TABLE 2: DEPOSIT PORTFOLIO MIX AND GROWTH RATES

																% Growth From
(Dollars in thousands)	Mar 31, 2024			Dec 31, 2023			Sep 30, 2023			Jun 30, 2023			Mar 31, 2023			Dec 31, 2023 ⁽¹⁾		Mar 31, 2023
Balance:
Non-interest-bearing	$	9,908,183		$	10,420,401		$	10,347,006		$	10,604,915		$	11,236,083		(20	)%	(12	)%
NOW and interest-bearing demand deposits		5,720,947			5,797,649			6,006,114			5,814,836			5,576,558		(5	)	3
Wealth management deposits ⁽²⁾		1,347,817			1,614,499			1,788,099			1,417,984			1,809,933		(66	)	(26	)
Money market		15,617,717			15,149,215			14,478,504			14,523,124			13,552,277		12		15
Savings		5,959,774			5,790,334			5,584,294			5,321,578			5,192,108		12		15
Time certificates of deposit		7,894,420			6,625,072			6,788,669			6,356,270			5,351,252		77		48
Total deposits	$	46,448,858		$	45,397,170		$	44,992,686		$	44,038,707		$	42,718,211		9	%	9	%
Mix:
Non-interest-bearing		21	%		23	%		23	%		24	%		26	%
NOW and interest-bearing demand deposits		12			13			13			13			13
Wealth management deposits ⁽²⁾		3			4			4			3			4
Money market		34			33			32			33			32
Savings		13			13			13			12			12
Time certificates of deposit		17			14			15			15			13
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 March 31, 2024

(Dollars in thousands)	Total Time Certificates of Deposit		Weighted-Average Rate of Maturing Time Certificates of Deposit
1-3 months	$	2,250,084	4.53	%
4-6 months		2,431,414	4.76
7-9 months		1,658,270	4.32
10-12 months		991,137	4.06
13-18 months		438,441	3.71
19-24 months		55,853	2.50
24+ months		69,221	1.78
Total	$	7,894,420	4.42	%

TABLE 4: QUARTERLY AVERAGE BALANCES

	Average Balance for three months ended,
	Mar 31,			Dec 31,			Sep 30,			Jun 30,			Mar 31,
(In thousands)		2024			2023			2023			2023			2023
Interest-bearing deposits with banks, securities purchased under resale agreements and cash equivalents ⁽¹⁾	$	1,254,332		$	1,682,176		$	2,053,568		$	1,454,057		$	1,235,748
Investment securities ⁽²⁾		8,349,796			7,971,068			7,706,285			7,252,582			7,956,722
FHLB and FRB stock		230,648			204,593			201,252			223,813			233,615
Liquidity management assets ⁽³⁾		9,834,776			9,857,837			9,961,105			8,930,452			9,426,085
Other earning assets ⁽³⁾⁽⁴⁾		15,081			14,821			17,879			17,401			18,445
Mortgage loans held-for-sale		290,275			279,569			319,099			307,683			270,966
Loans, net of unearned income ⁽³⁾⁽⁵⁾		42,129,893			41,361,952			40,707,042			40,106,393			39,093,368
Total earning assets ⁽³⁾		52,270,025			51,514,179			51,005,125			49,361,929			48,808,864
Allowance for loan and investment security losses		(361,734	)		(329,441	)		(319,491	)		(302,627	)		(282,704	)
Cash and due from banks		450,267			443,989			459,819			481,510			488,457
Other assets		3,244,137			3,388,348			3,236,528			3,061,141			3,060,701
Total assets	$	55,602,695		$	55,017,075		$	54,381,981		$	52,601,953		$	52,075,318

NOW and interest-bearing demand deposits	$	5,680,265		$	5,868,976		$	5,815,155		$	5,540,597		$	5,271,740
Wealth management deposits		1,510,203			1,704,099			1,512,765			1,545,626			2,167,081
Money market accounts		14,474,492			14,212,320			14,155,446			13,735,924			12,533,468
Savings accounts		5,792,118			5,676,155			5,472,535			5,206,609			4,830,322
Time deposits		7,148,456			6,645,980			6,495,906			5,603,024			5,041,638
Interest-bearing deposits		34,605,534			34,107,530			33,451,807			31,631,780			29,844,249
Federal Home Loan Bank advances		2,728,849			2,326,073			2,241,292			2,227,106			2,474,882
Other borrowings		627,711			633,673			657,454			625,757			602,937
Subordinated notes		437,893			437,785			437,658			437,545			437,422
Junior subordinated debentures		253,566			253,566			253,566			253,566			253,566
Total interest-bearing liabilities		38,653,553			37,758,627			37,041,777			35,175,754			33,613,056
Non-interest-bearing deposits		9,972,646			10,406,585			10,612,009			10,908,022			12,171,631
Other liabilities		1,536,039			1,785,667			1,644,312			1,473,459			1,395,360
Equity		5,440,457			5,066,196			5,083,883			5,044,718			4,895,271
Total liabilities and shareholders’ equity	$	55,602,695		$	55,017,075		$	54,381,981		$	52,601,953		$	52,075,318

Net free funds/contribution ⁽⁶⁾	$	13,616,472		$	13,755,552		$	13,963,348		$	14,186,175		$	15,195,808

(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 16: 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,
	Mar 31,			Dec 31,			Sep 30,			Jun 30,			Mar 31,
(In thousands)		2024			2023			2023			2023			2023
Interest income:
Interest-bearing deposits with banks, securities purchased under resale agreements and cash equivalents	$	16,677		$	22,340		$	28,022		$	16,882		$	13,538
Investment securities		70,228			68,812			59,737			51,795			60,494
FHLB and FRB stock		4,478			3,792			3,896			3,544			3,680
Liquidity management assets ⁽¹⁾		91,383			94,944			91,655			72,221			77,712
Other earning assets ⁽¹⁾		198			222			291			272			313
Mortgage loans held-for-sale		4,146			4,318			4,767			4,178			3,528
Loans, net of unearned income ⁽¹⁾		712,587			697,093			668,183			622,939			560,564
Total interest income	$	808,314		$	796,577		$	764,896		$	699,610		$	642,117

Interest expense:
NOW and interest-bearing demand deposits	$	34,896		$	38,124		$	36,001		$	29,178		$	18,772
Wealth management deposits		10,461			12,076			9,350			9,097			12,258
Money market accounts		137,984			130,252			124,742			106,630			68,276
Savings accounts		39,071			36,463			31,784			25,603			15,816
Time deposits		77,120			68,475			60,906			42,987			29,680
Interest-bearing deposits		299,532			285,390			262,783			213,495			144,802
Federal Home Loan Bank advances		22,048			18,316			17,436			17,399			19,135
Other borrowings		9,248			9,557			9,384			8,485			7,854
Subordinated notes		5,487			5,522			5,491			5,523			5,488
Junior subordinated debentures		5,004			5,089			4,948			4,737			4,416
Total interest expense	$	341,319		$	323,874		$	300,042		$	249,639		$	181,695

Less: Fully taxable-equivalent adjustment		(2,801	)		(2,729	)		(2,496	)		(2,434	)		(2,427	)
Net interest income (GAAP) ⁽²⁾		464,194			469,974			462,358			447,537			457,995
Fully taxable-equivalent adjustment		2,801			2,729			2,496			2,434			2,427
Net interest income, fully taxable-equivalent (non-GAAP) ⁽²⁾	$	466,995		$	472,703		$	464,854		$	449,971		$	460,422

(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 16: 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,
	Mar 31, 2024		Dec 31, 2023		Sep 30, 2023		Jun 30, 2023		Mar 31, 2023
Yield earned on:
Interest-bearing deposits with banks, securities purchased under resale agreements and cash equivalents	5.35	%	5.27	%	5.41	%	4.66	%	4.44	%
Investment securities	3.38		3.42		3.08		2.86		3.08
FHLB and FRB stock	7.81		7.35		7.68		6.35		6.39
Liquidity management assets	3.74		3.82		3.65		3.24		3.34
Other earning assets	5.25		5.92		6.47		6.27		6.87
Mortgage loans held-for-sale	5.74		6.13		5.93		5.45		5.28
Loans, net of unearned income	6.80		6.69		6.51		6.23		5.82
Total earning assets	6.22	%	6.13	%	5.95	%	5.68	%	5.34	%

Rate paid on:
NOW and interest-bearing demand deposits	2.47	%	2.58	%	2.46	%	2.11	%	1.44	%
Wealth management deposits	2.79		2.81		2.45		2.36		2.29
Money market accounts	3.83		3.64		3.50		3.11		2.21
Savings accounts	2.71		2.55		2.30		1.97		1.33
Time deposits	4.34		4.09		3.72		3.08		2.39
Interest-bearing deposits	3.48		3.32		3.12		2.71		1.97
Federal Home Loan Bank advances	3.25		3.12		3.09		3.13		3.14
Other borrowings	5.92		5.98		5.66		5.44		5.28
Subordinated notes	5.04		5.00		4.98		5.06		5.02
Junior subordinated debentures	7.94		7.96		7.74		7.49		6.97
Total interest-bearing liabilities	3.55	%	3.40	%	3.21	%	2.85	%	2.19	%

Interest rate spread ⁽¹⁾⁽²⁾	2.67	%	2.73	%	2.74	%	2.83	%	3.15	%
Less: Fully taxable-equivalent adjustment	(0.02	)	(0.02	)	(0.02	)	(0.02	)	(0.02	)
Net free funds/contribution ⁽³⁾	0.92		0.91		0.88		0.83		0.68
Net interest margin (GAAP) ⁽²⁾	3.57	%	3.62	%	3.60	%	3.64	%	3.81	%
Fully taxable-equivalent adjustment	0.02		0.02		0.02		0.02		0.02
Net interest margin, fully taxable-equivalent (non-GAAP) ⁽²⁾	3.59	%	3.64	%	3.62	%	3.66	%	3.83	%

(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 16: 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: 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
Mar 31, 2024	1.9	%	1.4	%	1.5	%	1.6	%
Dec 31, 2023	2.6		1.8		0.4		(0.7	)
Sep 30, 2023	3.3		1.9		(2.0	)	(5.2	)
Jun 30, 2023	5.7		2.9		(2.9	)	(7.9	)
Mar 31, 2023	4.2		2.4		(2.4	)	(7.3	)

Ramp Scenario	+200 Basis Points		+100 Basis Points		-100 Basis Points		-200 Basis Points
Mar 31, 2024	0.8	%	0.6	%	1.3	%	2.0	%
Dec 31, 2023	1.6		1.2		(0.3	)	(1.5	)
Sep 30, 2023	1.7		1.2		(0.5	)	(2.4	)
Jun 30, 2023	2.9		1.8		(0.9	)	(3.4	)
Mar 31, 2023	3.0		1.7		(1.3	)	(3.4	)

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 8: MATURITIES AND SENSITIVITIES TO CHANGES IN INTEREST RATES

Loans repricing or contractual maturity period

As of March 31, 2024

One year or
less

From one to
five years

From five to fifteen years

After fifteen years

Total

(In thousands)

Commercial

Fixed rate

446,377

3,035,619

1,778,737

38,598

5,299,331

Variable rate

8,202,814

1,336

—

8,204,150

Total commercial

8,649,191

3,036,955

1,778,737

38,598

13,503,481

Commercial real estate

Fixed rate

507,960

2,472,599

364,499

53,492

3,398,550

Variable rate

8,218,443

16,406

—

8,234,887

Total commercial real estate

8,726,403

2,489,005

364,537

53,492

11,633,437

Home equity

Fixed rate

9,684

3,551

—

13,261

Variable rate

327,088

—

327,088

Total home equity

336,772

3,551

—

340,349

Residential real estate

Fixed rate

19,856

3,515

30,517

1,045,088

1,098,976

Variable rate

79,739

315,526

1,396,025

—

1,791,290

Total residential real estate

99,595

319,041

1,426,542

1,045,088

2,890,266

Premium finance receivables – property & casualty

Fixed rate

6,827,182

112,837

—

6,940,019

Variable rate

—

Total premium finance receivables – property & casualty

6,827,182

112,837

—

6,940,019

Premium finance receivables – life insurance

Fixed rate

4,452

594,634

4,000

6,991

610,077

Variable rate

7,261,956

—

7,261,956

Total premium finance receivables – life insurance

7,266,408

594,634

4,000

6,991

7,872,033

Consumer and other

Fixed rate

4,139

5,683

460

10,291

Variable rate

40,830

—

40,830

Total consumer and other

44,969

5,683

460

51,121

Total per category

Fixed rate

7,819,650

6,228,438

2,177,762

1,144,655

17,370,505

Variable rate

24,130,870

333,268

1,396,063

—

25,860,201

Total loans, net of unearned income

31,950,520

6,561,706

3,573,825

1,144,655

43,230,706

Variable Rate Loan Pricing by Index:

SOFR tenors

14,880,310

One- year CMT

6,112,917

Prime

3,341,033

Fed Funds

1,039,799

Ameribor tenors

284,141

Other U.S. Treasury tenors

124,941

Other

77,060

Total variable rate

25,860,201

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/d1a58f1e-d3c0-4ab2-ba56-53947fd2c22b

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 $11.6 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
First Quarter 2024	(2	)	bps	24		bps	0	bps
Fourth Quarter 2023	3			(67	)		0
Third Quarter 2023	18			6			25
Second Quarter 2023	34			76			25
First Quarter 2023	44			(9	)		50

TABLE 9: ALLOWANCE FOR CREDIT LOSSES

	Three Months Ended
	Mar 31,			Dec 31,			Sep 30,			Jun 30,			Mar 31,
(Dollars in thousands)		2024			2023			2023			2023			2023
Allowance for credit losses at beginning of period	$	427,612		$	399,531		$	387,786		$	376,261		$	357,936
Cumulative effect adjustment from the adoption of ASU 2022-02		—			—			—			—			741
Provision for credit losses		21,673			42,908			19,923			28,514			23,045
Other adjustments		(31	)		62			(60	)		41			4
Charge-offs:
Commercial		11,215			5,114			2,427			5,629			2,543
Commercial real estate		5,469			5,386			1,713			8,124			5
Home equity		74			—			227			—			—
Residential real estate		38			114			78			—			—
Premium finance receivables – property & casualty		6,938			6,706			5,830			4,519			4,629
Premium finance receivables – life insurance		—			—			18			134			21
Consumer and other		107			148			184			110			153
Total charge-offs		23,841			17,468			10,477			18,516			7,351
Recoveries:
Commercial		479			592			1,162			505			392
Commercial real estate		31			92			243			25			100
Home equity		29			34			33			37			35
Residential real estate		2			10			1			6			4
Premium finance receivables – property & casualty		1,519			1,820			906			890			1,314
Premium finance receivables – life insurance		8			7			—			—			9
Consumer and other		23			24			14			23			32
Total recoveries		2,091			2,579			2,359			1,486			1,886
Net charge-offs		(21,750	)		(14,889	)		(8,118	)		(17,030	)		(5,465	)
Allowance for credit losses at period end	$	427,504		$	427,612		$	399,531		$	387,786		$	376,261

Annualized net charge-offs (recoveries) by category as a percentage of its own respective category’s average:
Commercial		0.33	%		0.14	%		0.04	%		0.16	%		0.07	%
Commercial real estate		0.19			0.19			0.05			0.31			0.00
Home equity		0.05			(0.04	)		0.23			(0.04	)		(0.04	)
Residential real estate		0.01			0.02			0.01			0.00			0.00
Premium finance receivables – property & casualty		0.32			0.29			0.29			0.24			0.23
Premium finance receivables – life insurance		(0.00	)		(0.00	)		0.00			0.01			0.00
Consumer and other		0.42			0.58			0.65			0.45			0.74
Total loans, net of unearned income		0.21	%		0.14	%		0.08	%		0.17	%		0.06	%

Loans at period end	$	43,230,706		$	42,131,831		$	41,446,032		$	41,023,408		$	39,565,471
Allowance for loan losses as a percentage of loans at period end		0.81	%		0.82	%		0.76	%		0.74	%		0.73	%
Allowance for loan and unfunded lending-related commitment losses as a percentage of loans at period end		0.99			1.01			0.96			0.94			0.95

TABLE 10: ALLOWANCE AND PROVISION FOR CREDIT LOSSES BY COMPONENT

	Three Months Ended
	Mar 31,			Dec 31,			Sep 30,			Jun 30,			Mar 31,
(In thousands)		2024			2023			2023			2023			2023
Provision for loan losses	$	26,159		$	44,023		$	20,717		$	31,516		$	22,520
Provision for unfunded lending-related commitments losses		(4,468	)		(1,081	)		(769	)		(2,945	)		550
Provision for held-to-maturity securities losses		(18	)		(34	)		(25	)		(57	)		(25	)
Provision for credit losses	$	21,673		$	42,908		$	19,923		$	28,514		$	23,045

Allowance for loan losses	$	348,612		$	344,235		$	315,039		$	302,499		$	287,972
Allowance for unfunded lending-related commitments losses		78,563			83,030			84,111			84,881			87,826
Allowance for loan losses and unfunded lending-related commitments losses		427,175			427,265			399,150			387,380			375,798
Allowance for held-to-maturity securities losses		329			347			381			406			463
Allowance for credit losses	$	427,504		$	427,612		$	399,531		$	387,786		$	376,261

TABLE 11: 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 March 31, 2024, December 31, 2023 and September 30, 2023.

	As of Mar 31, 2024						As of Dec 31, 2023						As of Sep 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	$	13,503,481	$	166,518	1.23	%	$	12,832,053	$	169,604	1.32	%	$	12,725,473	$	151,488	1.19	%
Commercial real estate:
Construction and development		2,150,314		96,052	4.47			2,084,041		94,081	4.51			1,893,773		90,622	4.79
Non-construction		9,483,123		130,000	1.37			9,260,123		129,772	1.40			9,052,407		125,096	1.38
Home equity		340,349		7,191	2.11			343,976		7,116	2.07			343,258		7,080	2.06
Residential real estate		2,890,266		13,701	0.47			2,769,666		13,133	0.47			2,707,603		12,659	0.47
Premium finance receivables
Property and casualty insurance		6,940,019		12,645	0.18			6,903,529		12,384	0.18			6,722,747		11,132	0.17
Life insurance		7,872,033		685	0.01			7,877,943		685	0.01			7,931,808		688	0.01
Consumer and other		51,121		383	0.75			60,500		490	0.81			68,963		385	0.56
Total loans, net of unearned income	$	43,230,706	$	427,175	0.99	%	$	42,131,831	$	427,265	1.01	%	$	41,446,032	$	399,150	0.96	%

Total core loans ⁽¹⁾	$	25,402,132	$	382,372	1.51	%	$	24,592,729	$	380,847	1.55	%	$	24,088,651	$	363,873	1.51	%
Total niche loans ⁽¹⁾		17,828,574		44,803	0.25			17,539,102		46,418	0.26			17,357,381		35,277	0.20

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

TABLE 12: LOAN PORTFOLIO AGING

(In thousands)	Mar 31, 2024		Dec 31, 2023		Sep 30, 2023		Jun 30, 2023		Mar 31, 2023
Loan Balances:
Commercial
Nonaccrual	$	31,740	$	38,940	$	43,569	$	40,460	$	47,950
90+ days and still accruing		27		98		200		573		—
60-89 days past due		30,248		19,488		22,889		22,808		10,755
30-59 days past due		77,715		85,743		35,681		48,970		95,593
Current		13,363,751		12,687,784		12,623,134		12,487,660		12,422,687
Total commercial	$	13,503,481	$	12,832,053	$	12,725,473	$	12,600,471	$	12,576,985
Commercial real estate
Nonaccrual	$	39,262	$	35,459	$	17,043	$	18,483	$	11,196
90+ days and still accruing		—		—		1,092		—		—
60-89 days past due		16,713		8,515		7,395		1,054		20,539
30-59 days past due		32,998		20,634		60,984		14,218		72,680
Current		11,544,464		11,279,556		10,859,666		10,575,056		10,134,663
Total commercial real estate	$	11,633,437	$	11,344,164	$	10,946,180	$	10,608,811	$	10,239,078
Home equity
Nonaccrual	$	838	$	1,341	$	1,363	$	1,361	$	1,190
90+ days and still accruing		—		—		—		110		—
60-89 days past due		212		62		219		316		116
30-59 days past due		1,617		2,263		1,668		601		1,118
Current		337,682		340,310		340,008		334,586		334,592
Total home equity	$	340,349	$	343,976	$	343,258	$	336,974	$	337,016
Residential real estate
Early buy-out loans guaranteed by U.S. government agencies ⁽¹⁾	$	143,350	$	150,583	$	168,973	$	187,848	$	196,152
Nonaccrual		17,901		15,391		16,103		13,652		11,333
90+ days and still accruing		—		—		—		—		104
60-89 days past due		—		2,325		1,145		7,243		74
30-59 days past due		24,523		22,942		904		872		19,183
Current		2,704,492		2,578,425		2,520,478		2,433,625		2,278,699
Total residential real estate	$	2,890,266	$	2,769,666	$	2,707,603	$	2,643,240	$	2,505,545
Premium finance receivables – property & casualty
Nonaccrual	$	32,648	$	27,590	$	26,756	$	19,583	$	18,543
90+ days and still accruing		25,877		20,135		16,253		12,785		9,215
60-89 days past due		15,274		23,236		16,552		22,670		14,287
30-59 days past due		59,729		50,437		31,919		32,751		32,545
Current		6,806,491		6,782,131		6,631,267		6,674,909		5,664,290
Total Premium finance receivables – property & casualty	$	6,940,019	$	6,903,529	$	6,722,747	$	6,762,698	$	5,738,880
Premium finance receivables – life insurance
Nonaccrual	$	—	$	—	$	—	$	6	$	—
90+ days and still accruing		—		—		10,679		1,667		1,066
60-89 days past due		32,482		16,206		41,894		3,729		21,552
30-59 days past due		100,137		45,464		14,972		90,117		52,975
Current		7,739,414		7,816,273		7,864,263		7,943,754		8,050,209
Total Premium finance receivables – life insurance	$	7,872,033	$	7,877,943	$	7,931,808	$	8,039,273	$	8,125,802
Consumer and other
Nonaccrual	$	19	$	22	$	16	$	4	$	6
90+ days and still accruing		47		54		27		28		87
60-89 days past due		16		25		196		51		10
30-59 days past due		210		165		519		146		379
Current		50,829		60,234		68,205		31,712		41,683
Total consumer and other	$	51,121	$	60,500	$	68,963	$	31,941	$	42,165
Total loans, net of unearned income
Early buy-out loans guaranteed by U.S. government agencies ⁽¹⁾	$	143,350	$	150,583	$	168,973	$	187,848	$	196,152
Nonaccrual		122,408		118,743		104,850		93,549		90,218
90+ days and still accruing		25,951		20,287		28,251		15,163		10,472
60-89 days past due		94,945		69,857		90,290		57,871		67,333
30-59 days past due		296,929		227,648		146,647		187,675		274,473
Current		42,547,123		41,544,713		40,907,021		40,481,302		38,926,823
Total loans, net of unearned income	$	43,230,706	$	42,131,831	$	41,446,032	$	41,023,408	$	39,565,471

(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 13: NON-PERFORMING ASSETS⁽¹⁾

	Mar 31,			Dec 31,			Sep 30,			Jun 30,			Mar 31,
(Dollars in thousands)		2024			2023			2023			2023			2023
Loans past due greater than 90 days and still accruing:
Commercial	$	27		$	98		$	200		$	573		$	—
Commercial real estate		—			—			1,092			—			—
Home equity		—			—			—			110			—
Residential real estate		—			—			—			—			104
Premium finance receivables – property & casualty		25,877			20,135			16,253			12,785			9,215
Premium finance receivables – life insurance		—			—			10,679			1,667			1,066
Consumer and other		47			54			27			28			87
Total loans past due greater than 90 days and still accruing		25,951			20,287			28,251			15,163			10,472
Non-accrual loans:
Commercial		31,740			38,940			43,569			40,460			47,950
Commercial real estate		39,262			35,459			17,043			18,483			11,196
Home equity		838			1,341			1,363			1,361			1,190
Residential real estate		17,901			15,391			16,103			13,652			11,333
Premium finance receivables – property & casualty		32,648			27,590			26,756			19,583			18,543
Premium finance receivables – life insurance		—			—			—			6			—
Consumer and other		19			22			16			4			6
Total non-accrual loans		122,408			118,743			104,850			93,549			90,218
Total non-performing loans:
Commercial		31,767			39,038			43,769			41,033			47,950
Commercial real estate		39,262			35,459			18,135			18,483			11,196
Home equity		838			1,341			1,363			1,471			1,190
Residential real estate		17,901			15,391			16,103			13,652			11,437
Premium finance receivables – property & casualty		58,525			47,725			43,009			32,368			27,758
Premium finance receivables – life insurance		—			—			10,679			1,673			1,066
Consumer and other		66			76			43			32			93
Total non-performing loans	$	148,359		$	139,030		$	133,101		$	108,712		$	100,690
Other real estate owned		14,538			13,309			14,060			11,586			9,361
Total non-performing assets	$	162,897		$	152,339		$	147,161		$	120,298		$	110,051
Total non-performing loans by category as a percent of its own respective category’s period-end balance:
Commercial		0.24	%		0.30	%		0.34	%		0.33	%		0.38	%
Commercial real estate		0.34			0.31			0.17			0.17			0.11
Home equity		0.25			0.39			0.40			0.44			0.35
Residential real estate		0.62			0.56			0.59			0.52			0.46
Premium finance receivables – property & casualty		0.84			0.69			0.64			0.48			0.48
Premium finance receivables – life insurance		—			—			0.13			0.02			0.01
Consumer and other		0.13			0.13			0.06			0.10			0.22
Total loans, net of unearned income		0.34	%		0.33	%		0.32	%		0.26	%		0.25	%
Total non-performing assets as a percentage of total assets		0.28	%		0.27	%		0.26	%		0.22	%		0.21	%
Allowance for loan losses and unfunded lending-related commitments losses as a percentage of non-accrual loans		348.98	%		359.82	%		380.69	%		414.09	%		416.54	%

(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
	Mar 31,			Dec 31,			Sep 30,			Jun 30,			Mar 31,
(In thousands)		2024			2023			2023			2023			2023

Balance at beginning of period	$	139,030		$	133,101		$	108,712		$	100,690		$	100,697
Additions from becoming non-performing in the respective period		23,142			59,010			18,666			21,246			24,455
Return to performing status		(490	)		(24,469	)		(1,702	)		(360	)		(480	)
Payments received		(8,336	)		(10,000	)		(6,488	)		(12,314	)		(5,261	)
Transfer to OREO and other repossessed assets		(1,381	)		(2,623	)		(2,671	)		(2,958	)		—
Charge-offs, net		(14,810	)		(9,480	)		(3,011	)		(2,696	)		(1,159	)
Net change for niche loans ⁽¹⁾		11,204			(6,509	)		19,595			5,104			(17,562	)
Balance at end of period	$	148,359		$	139,030		$	133,101		$	108,712		$	100,690

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

Other Real Estate Owned

	Three Months Ended
	Mar 31,			Dec 31,			Sep 30,			Jun 30,			Mar 31,
(In thousands)		2024			2023			2023			2023			2023
Balance at beginning of period	$	13,309		$	14,060		$	11,586		$	9,361		$	9,900
Disposals/resolved		—			(3,416	)		(467	)		(733	)		(435	)
Transfers in at fair value, less costs to sell		1,436			2,665			2,941			2,958			—
Fair value adjustments		(207	)		—			—			—			(104	)
Balance at end of period	$	14,538		$	13,309		$	14,060		$	11,586		$	9,361

	Period End
	Mar 31,			Dec 31,			Sep 30,			Jun 30,			Mar 31,
Balance by Property Type:		2024			2023			2023			2023			2023
Residential real estate	$	720		$	720		$	441		$	318		$	1,051
Residential real estate development		426			—			—			—			—
Commercial real estate		13,392			12,589			13,619			11,268			8,310
Total	$	14,538		$	13,309		$	14,060		$	11,586		$	9,361

TABLE 14: NON-INTEREST INCOME

	Three Months Ended														Q1 2024 compared to Q4 2023					Q1 2024 compared to Q1 2023
	Mar 31,			Dec 31,			Sep 30,			Jun 30,		Mar 31,			Q1 2024 compared to Q4 2023					Q1 2024 compared to Q1 2023
(Dollars in thousands)		2024			2023			2023			2023		2023		$ Change			% Change		$ Change			% Change
Brokerage	$	5,556		$	5,349		$	4,359		$	4,404	$	4,533		$	207		4	%	$	1,023		23	%
Trust and asset management		29,259			27,926			29,170			29,454		25,412			1,333		5			3,847		15
Total wealth management		34,815			33,275			33,529			33,858		29,945			1,540		5			4,870		16
Mortgage banking		27,663			7,433			27,395			29,981		18,264			20,230		NM			9,399		51
Service charges on deposit accounts		14,811			14,522			14,217			13,608		12,903			289		2			1,908		15
Gains (losses) on investment securities, net		1,326			2,484			(2,357	)		0		1,398			(1,158	)	(47	)		(72	)	(5	)
Fees from covered call options		4,847			4,679			4,215			2,578		10,391			168		4			(5,544	)	(53	)
Trading gains (losses), net		677			(505	)		728			106		813			1,182		NM			(136	)	(17	)
Operating lease income, net		14,110			14,162			13,863			12,227		13,046			(52	)	0			1,064		8
Other:
Interest rate swap fees		2,828			4,021			2,913			2,711		2,606			(1,193	)	(30	)		222		9
BOLI		1,651			1,747			729			1,322		1,351			(96	)	(5	)		300		22
Administrative services		1,217			1,329			1,336			1,319		1,615			(112	)	(8	)		(398	)	(25	)
Foreign currency remeasurement (losses) gains		(1,171	)		1,150			(446	)		543		(188	)		(2,321	)	NM			(983	)	NM
Early pay-offs of capital leases		430			157			461			201		365			273		NM			65		18
Miscellaneous		37,376			16,375			15,895			14,576		15,260			21,001		NM			22,116		NM
Total Other		42,331			24,779			20,888			20,672		21,009			17,552		71			21,322		NM
Total Non-Interest Income	$	140,580		$	100,829		$	112,478		$	113,030	$	107,769		$	39,751		39	%	$	32,811		30	%

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

TABLE 15: NON-INTEREST EXPENSE

	Three Months Ended												Q1 2024 compared to Q4 2023					Q1 2024 compared to Q1 2023
	Mar 31,		Dec 31,			Sep 30,		Jun 30,		Mar 31,			Q1 2024 compared to Q4 2023					Q1 2024 compared to Q1 2023
(Dollars in thousands)		2024		2023			2023		2023		2023		$ Change			% Change		$ Change			% Change
Salaries and employee benefits:
Salaries	$	112,172	$	111,484		$	111,303	$	107,671	$	108,354		$	688		1	%	$	3,818		4	%
Commissions and incentive compensation		51,001		48,974			48,817		44,511		39,799			2,027		4			11,202		28
Benefits		32,000		33,513			32,218		32,741		28,628			(1,513	)	(5	)		3,372		12
Total salaries and employee benefits		195,173		193,971			192,338		184,923		176,781			1,202		1			18,392		10
Software and equipment		27,731		27,779			25,951		26,205		24,697			(48	)	0			3,034		12
Operating lease equipment		10,683		10,694			12,020		9,816		9,833			(11	)	0			850		9
Occupancy, net		19,086		18,102			21,304		19,176		18,486			984		5			600		3
Data processing		9,292		8,892			10,773		9,726		9,409			400		4			(117	)	(1	)
Advertising and marketing		13,040		17,166			18,169		17,794		11,946			(4,126	)	(24	)		1,094		9
Professional fees		9,553		8,768			8,887		8,940		8,163			785		9			1,390		17
Amortization of other acquisition-related intangible assets		1,158		1,356			1,408		1,499		1,235			(198	)	(15	)		(77	)	(6	)
FDIC insurance		9,381		9,303			9,748		9,008		8,669			78		1			712		8
FDIC insurance – special assessment		5,156		34,374			—		—		—			(29,218	)	(85	)		5,156		NM
OREO expense, net		392		(1,559	)		120		118		(207	)		1,951		NM			599		NM
Other:
Lending expenses, net of deferred origination costs		5,078		5,330			4,777		7,890		3,099			(252	)	(5	)		1,979		64
Travel and entertainment		4,597		5,754			5,449		5,401		4,590			(1,157	)	(20	)		7		0
Miscellaneous		22,825		22,722			19,111		20,127		22,468			103		0			357		2
Total other		32,500		33,806			29,337		33,418		30,157			(1,306	)	(4	)		2,343		8
Total Non-Interest Expense	$	333,145	$	362,652		$	330,055	$	320,623	$	299,169		$	(29,507	)	(8	)%	$	33,976		11	%

NM – Not meaningful.

TABLE 16: 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
	Mar 31,			Dec 31,			Sep 30,			Jun 30,			Mar 31,
(Dollars and shares in thousands)		2024			2023			2023			2023			2023
Reconciliation of Non-GAAP Net Interest Margin and Efficiency Ratio:
(A) Interest Income (GAAP)	$	805,513		$	793,848		$	762,400		$	697,176		$	639,690
Taxable-equivalent adjustment:
– Loans		2,246			2,150			1,923			1,882			1,872
– Liquidity Management Assets		550			575			572			551			551
– Other Earning Assets		5			4			1			1			4
(B) Interest Income (non-GAAP)	$	808,314		$	796,577		$	764,896		$	699,610		$	642,117
(C) Interest Expense (GAAP)		341,319			323,874			300,042			249,639			181,695
(D) Net Interest Income (GAAP) (A minus C)	$	464,194		$	469,974		$	462,358		$	447,537		$	457,995
(E) Net Interest Income (non-GAAP) (B minus C)	$	466,995		$	472,703		$	464,854		$	449,971		$	460,422
Net interest margin (GAAP)		3.57	%		3.62	%		3.60	%		3.64	%		3.81	%
Net interest margin, fully taxable-equivalent (non-GAAP)		3.59			3.64			3.62			3.66			3.83
(F) Non-interest income	$	140,580		$	100,829		$	112,478		$	113,030		$	107,769
(G) (Losses) gains on investment securities, net		1,326			2,484			(2,357	)		0			1,398
(H) Non-interest expense		333,145			362,652			330,055			320,623			299,169
Efficiency ratio (H/(D+F-G))		55.21	%		63.81	%		57.18	%		57.20	%		53.01	%
Efficiency ratio (non-GAAP) (H/(E+F-G))		54.95			63.51			56.94			56.95			52.78
	Three Months Ended
	Mar 31,			Dec 31,			Sep 30,			Jun 30,			Mar 31,
(Dollars and shares in thousands)		2024			2023			2023			2023			2023
Reconciliation of Non-GAAP Tangible Common Equity Ratio:
Total shareholders’ equity (GAAP)	$	5,436,400		$	5,399,526		$	5,015,613		$	5,041,912		$	5,015,506
Less: Non-convertible preferred stock (GAAP)		(412,500	)		(412,500	)		(412,500	)		(412,500	)		(412,500	)
Less: Intangible assets (GAAP)		(677,911	)		(679,561	)		(680,353	)		(682,327	)		(674,538	)
(I) Total tangible common shareholders’ equity (non-GAAP)	$	4,345,989		$	4,307,465		$	3,922,760		$	3,947,085		$	3,928,468
(J) Total assets (GAAP)	$	57,576,933		$	56,259,934		$	55,555,246		$	54,286,176		$	52,873,511
Less: Intangible assets (GAAP)		(677,911	)		(679,561	)		(680,353	)		(682,327	)		(674,538	)
(K) Total tangible assets (non-GAAP)	$	56,899,022		$	55,580,373		$	54,874,893		$	53,603,849		$	52,198,973
Common equity to assets ratio (GAAP) (L/J)		8.7	%		8.9	%		8.3	%		8.5	%		8.7	%
Tangible common equity ratio (non-GAAP) (I/K)		7.6			7.7			7.1			7.4			7.5

Reconciliation of Non-GAAP Tangible Book Value per Common Share:
Total shareholders’ equity	$	5,436,400		$	5,399,526		$	5,015,613		$	5,041,912		$	5,015,506
Less: Preferred stock		(412,500	)		(412,500	)		(412,500	)		(412,500	)		(412,500	)
(L) Total common equity	$	5,023,900		$	4,987,026		$	4,603,113		$	4,629,412		$	4,603,006
(M) Actual common shares outstanding		61,737			61,244			61,222			61,198			61,176
Book value per common share (L/M)	$	81.38		$	81.43		$	75.19		$	75.65		$	75.24
Tangible book value per common share (non-GAAP) (I/M)		70.40			70.33			64.07			64.50			64.22

Reconciliation of Non-GAAP Return on Average Tangible Common Equity:
(N) Net income applicable to common shares	$	180,303		$	116,489		$	157,207		$	147,759		$	173,207
Add: Intangible asset amortization		1,158			1,356			1,408			1,499			1,235
Less: Tax effect of intangible asset amortization		(291	)		(343	)		(380	)		(402	)		(321	)
After-tax intangible asset amortization	$	867		$	1,013		$	1,028		$	1,097		$	914
(O) Tangible net income applicable to common shares (non-GAAP)	$	181,170		$	117,502		$	158,235		$	148,856		$	174,121
Total average shareholders’ equity	$	5,440,457		$	5,066,196		$	5,083,883		$	5,044,718		$	4,895,271
Less: Average preferred stock		(412,500	)		(412,500	)		(412,500	)		(412,500	)		(412,500	)
(P) Total average common shareholders’ equity	$	5,027,957		$	4,653,696		$	4,671,383		$	4,632,218		$	4,482,771
Less: Average intangible assets		(678,731	)		(679,812	)		(681,520	)		(682,561	)		(675,247	)
(Q) Total average tangible common shareholders’ equity (non-GAAP)	$	4,349,226		$	3,973,884		$	3,989,863		$	3,949,657		$	3,807,524
Return on average common equity, annualized (N/P)		14.42	%		9.93	%		13.35	%		12.79	%		15.67	%
Return on average tangible common equity, annualized (non-GAAP) (O/Q)		16.75			11.73			15.73			15.12			18.55

Reconciliation of Non-GAAP Pre-Tax, Pre-Provision Income:
Income before taxes	$	249,956		$	165,243		$	224,858		$	211,430		$	243,550
Add: Provision for credit losses		21,673			42,908			19,923			28,514			23,045
Pre-tax income, excluding provision for credit losses (non-GAAP)	$	271,629		$	208,151		$	244,781		$	239,944		$	266,595

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, Hawthorn Woods, Highland Park, Highwood, Hoffman Estates, Homer Glen, Itasca, Joliet, Lake Bluff, Lake Villa, Lansing, Lemont, Lindenhurst, Lombard, Lynwood, Markham, Maywood, McHenry, Mokena, Mount Prospect, Mundelein, Naperville, Norridge, Northfield, Oak Lawn, Oak Park, Orland Park, Palatine, Park Ridge, Prospect Heights, Riverside, Rockford, Rolling Meadows, Round Lake Beach, Shorewood, Skokie, Spring Grove, Steger, Stone Park, Vernon Hills, Wauconda, Waukegan, Western Springs, Willowbrook, Wilmette, Winnetka and Wood Dale, and in Wisconsin in Burlington, Clinton, Delafield, Delavan, Elm Grove, Genoa City, Kenosha, Lake Geneva, Madison, Menomonee Falls, Milwaukee, Pewaukee, Racine, Wales, Walworth, Whitefish Bay and Wind Lake, and in Florida in Bonita Springs and Naples, and in Indiana in Crown Point and Dyer.

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

FIRST Insurance Funding and Wintrust Life Finance, each a division of Lake Forest Bank & Trust Company, N.A., serve commercial and life insurance loan customers, respectively, throughout the United States.
First Insurance Funding of Canada serves commercial insurance loan customers throughout Canada.
Tricom, Inc. of Milwaukee provides high-yielding, short-term accounts receivable financing and value-added out-sourced administrative services, such as data processing of payrolls, billing and cash management services, to temporary staffing service clients located throughout the United States.
Wintrust Mortgage, a division of Barrington Bank & Trust Company, N.A., engages primarily in the origination and purchase of residential mortgages for sale into the secondary market through origination offices located throughout the United States. Loans are also originated nationwide through relationships with wholesale and correspondent offices.
Wintrust Investments, LLC is a broker-dealer providing a full range of private client and brokerage services to clients and correspondent banks located primarily in the Midwest.
Great Lakes Advisors LLC provides money management services and advisory services to individual accounts.
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 2023 Annual Report on Form 10-K and in any of the Company’s subsequent SEC filings. The Company intends such forward-looking statements to be covered by the safe harbor provisions for forward-looking statements contained in the Private Securities Litigation Reform Act of 1995, and is including this statement for purposes of invoking these safe harbor provisions. Such forward-looking statements may be deemed to include, among other things, statements relating to the Company’s future financial performance, the performance of its loan portfolio, the expected amount of future credit reserves and charge-offs, delinquency trends, growth plans, regulatory developments, securities that the Company may offer from time to time, plans to form additional de novo banks or branch offices, and management’s long-term performance goals, as well as statements relating to the anticipated effects on the Company’s financial condition and results of operations from expected developments or events, the Company’s business and growth strategies, including future acquisitions of banks, specialty finance or wealth management businesses, internal growth and plans to form additional de novo banks or branch offices. Actual results could differ materially from those addressed in the forward-looking statements as a result of numerous factors, including the following:

economic conditions and events that affect the economy, housing prices, the job market and other factors that may adversely affect the Company’s liquidity and the performance of its loan portfolios, including an actual or threatened U.S. government debt default or rating downgrade, particularly in the markets in which it operates;
negative effects suffered by us or our customers resulting from changes in U.S. trade policies;
the extent of defaults and losses on the Company’s loan portfolio, which may require further increases in its allowance for credit losses;
estimates of fair value of certain of the Company’s assets and liabilities, which could change in value significantly from period to period;
the financial success and economic viability of the borrowers of our commercial loans;
commercial real estate market conditions in the Chicago metropolitan area and southern Wisconsin;
the extent of commercial and consumer delinquencies and declines in real estate values, which may require further increases in the Company’s allowance for credit losses;
inaccurate assumptions in our analytical and forecasting models used to manage our loan portfolio;
changes in the level and volatility of interest rates, the capital markets and other market indices that may affect, among other things, the Company’s liquidity and the value of its assets and liabilities;
the interest rate environment, including a prolonged period of low interest rates or rising interest rates, either broadly or for some types of instruments, which may affect the Company’s net interest income and net interest margin, and which could materially adversely affect the Company’s profitability;
competitive pressures in the financial services business which may affect the pricing of the Company’s loan and deposit products as well as its services (including wealth management services), which may result in loss of market share and reduced income from deposits, loans, advisory fees and income from other products;
failure to identify and complete favorable acquisitions in the future or unexpected losses, difficulties or developments related to the Company’s recent or future acquisitions;
unexpected difficulties and losses related to FDIC-assisted acquisitions;
harm to the Company’s reputation;
any negative perception of the Company’s financial strength;
ability of the Company to raise additional capital on acceptable terms when needed;
disruption in capital markets, which may lower fair values for the Company’s investment portfolio;
ability of the Company to use technology to provide products and services that will satisfy customer demands and create efficiencies in operations and to manage risks associated therewith;
failure or breaches of our security systems or infrastructure, or those of third parties;
security breaches, including denial of service attacks, hacking, social engineering attacks, malware intrusion and similar events or data corruption attempts and identity theft;
adverse effects on our information technology systems, or those of third parties, resulting from failures, human error or cyberattacks (including ransomware);
adverse effects of failures by our vendors to provide agreed upon services in the manner and at the cost agreed, particularly our information technology vendors;
increased costs as a result of protecting our customers from the impact of stolen debit card information;
accuracy and completeness of information the Company receives about customers and counterparties to make credit decisions;
ability of the Company to attract and retain senior management experienced in the banking and financial services industries, 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, April 18, 2024 at 10:00 a.m. (CDT) regarding first quarter 2024 earnings results. Individuals interested in participating in the call by addressing questions to management should register for the call to receive the dial-in numbers and unique PIN at the Conference Call Link included within the Company’s press release dated March 28, 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 first quarter 2024 earnings press release will also be available on the home page of the Company’s website at https://www.wintrust.com and at the Investor Relations, Investor News and Events, Press Releases link on its website.

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

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