ROSEMONT, Ill., July 17, 2024 (GLOBE NEWSWIRE) -- Wintrust Financial Corporation ("Wintrust", "the Company", "we" or "our") (NASDAQ:WTFC) announced record net income of $339.7 million or $5.21 per diluted common share for the first six months of 2024 compared to net income of $334.9 million or $5.18 per diluted common share for the same period of 2023. Pre-tax, pre-provision income (non-GAAP) for the first six months of 2024 totaled a record $523.0 million, compared to $506.5 million in the first six months of 2023. The Company recorded quarterly net income of $152.4 million or $2.32 per diluted common share for the second quarter of 2024 compared to net income of $187.3 million or $2.89 per diluted common share for the first quarter of 2024. Pre-tax, pre-provision income (non-GAAP) totaled $251.4 million as compared to $271.6 million for the first quarter of 2024, with the majority of the decrease attributable to the net gain of $19.3 million on the sale of the Company's Retirement Benefit Advisors ("RBA") division in the first quarter of 2024. Timothy S. Crane, President and Chief Executive Officer, commented, "We are pleased with our record net income for the first half of 2024 and record quarterly net interest income. Robust loan and deposit growth coupled with a stabilizing margin drove our strong second quarter results. Pre-tax, pre-provision income (non-GAAP) also set the Company's record for the first half of 2024 and we believe we are well-positioned for strong financial performance as we continue our momentum into the second half of the year." Additionally, Mr. Crane noted, "Net interest margin in the second quarter was within our expected range, decreasing seven basis points as compared to the first quarter of 2024. We expect the combination of a stable net interest margin and balance sheet growth to result in continued net interest income growth over the next few quarters. Focusing on growth of net interest income, disciplined expense control and maintaining our consistent credit standards should lead to increasing our long-term franchise value." Highlights of the second quarter of 2024:Comparative information to the first quarter of 2024, unless otherwise noted Total loans increased by approximately $1.4 billion, or 13% annualized. Adjusting for the impact of a loan sale transaction of property and casualty insurance premium finance receivables during the second quarter of 2024, total loans would have increased $2.1 billion, or 20% annualized. Total deposits increased by approximately $1.6 billion, or 14% annualized. Total assets increased by $2.2 billion, or 15% annualized. Net interest margin decreased by seven basis points to 3.50% (3.52% on a fully taxable-equivalent basis, non-GAAP) during the second quarter of 2024. Net interest income increased to $470.6 million in the second quarter of 2024 compared to $464.2 million in the first quarter of 2024, primarily due to average earning asset growth. Non-interest income was impacted by the following: Net losses on investment securities totaled $4.3 million in the second quarter of 2024 related to changes in the value of equity securities as compared to net gains of $1.3 million in the first quarter of 2024. Favorable net valuation adjustments related to certain mortgage assets totaled $1.4 million in the second quarter of 2024 compared to favorable net valuation adjustments of $2.4 million in the first quarter of 2024. Non-interest expense was impacted by the following: Occupancy expenses of $1.9 million in the second quarter of 2024 related to an unrealized loss associated with the anticipated sale of a branch facility. Approximately $532,000 of professional fees related to the pending acquisition of Macatawa Bank Corporation in the second quarter of 2024 as compared to approximately $392,000 recorded in the first quarter of 2024. Provision for credit losses totaled $40.1 million in the second quarter of 2024 as compared to a provision for credit losses of $21.7 million in the first quarter of 2024. Mr. Crane noted, "Net loan growth during the second quarter totaled $1.4 billion, or 13% on an annualized basis. We are pleased with our diversified loan growth across all major loan types. We were able to achieve this growth net of our election to sell property and casualty insurance premium finance receivables that reduced total outstanding loans at the end of the second quarter by approximately $698 million. Deposit growth in the second quarter of 2024 was utilized to fund our robust loan growth as deposits increased by approximately $1.6 billion, or 14% on an annualized basis. Non-interest bearing deposits remained 21% of total deposits at the end of the second quarter of 2024 and increased $123.3 million compared to the first quarter of 2024. We continue to leverage our customer relationships and market positioning to generate deposits, grow loans and build long term franchise value. Despite the slightly lower net interest margin during the current period, we generated record quarterly net interest income as we continued to grow earning assets." Commenting on credit quality, Mr. Crane stated, "As anticipated, we are observing some gradual normalization in our credit metrics. Net charge-offs totaled $30.0 million, or 28 basis points of average total loans on an annualized basis, in the second quarter of 2024 and were spread primarily across the commercial, commercial real estate and property and casualty premium finance receivables portfolios. This compared to net charge-offs totaling $21.8 million, or 21 basis points of average total loans on an annualized basis, in the first quarter of 2024. Non-performing loans totaled $174.3 million, or 0.39% of total loans, at the end of the second quarter of 2024 compared to $148.4 million, or 0.34% of total loans, at the end of the first quarter of 2024. Levels of loans classified as special mention and substandard remained consistent with levels reported at the end of the first quarter of 2024. We continue to be conservative and proactive in reviewing credit and maintaining our consistently strong credit standards. The allowance for credit losses on our core loan portfolio as of June 30, 2024 was approximately 1.52% of the outstanding balance, an increase of one basis point compared to March 31, 2024 (see Table 11 for additional information). We believe that the Company's reserves remain appropriate and we remain diligent in our review of credit." In summary, Mr. Crane noted, "We are very pleased with our record start to the year. Momentum continues as our substantial loan growth in the second quarter creates positive revenue momentum moving forward as period-end loan balances exceeded averages. Regulatory approval of our previously announced acquisition of Macatawa Bank Corporation in Michigan was received June 17, 2024. Completion of the acquisition remains subject to approval by Macatawa's shareholders at a meeting to be held on July 31, 2024, as well as the satisfaction of the other customary closing conditions set forth in the merger agreement. We remain excited for the opportunity to expand into Michigan with Macatawa's committed management team and reputable bank exhibiting excess liquidity, pristine asset quality and low-cost core deposits." The graphs below illustrate certain financial highlights of the second quarter of 2024 as well as historical financial performance. See "Supplemental Non-GAAP Financial Measures/Ratios" at Table 18 for additional information with respect to non-GAAP financial measures/ratios, including the reconciliations to the corresponding GAAP financial measures/ratios. Graphs available at the following link: http://ml.globenewswire.com/Resource/Download/49b05914-dbe5-4a50-923d-ed93ccdfb379 SUMMARY OF RESULTS: BALANCE SHEET Total assets increased $2.2 billion in the second quarter of 2024 as compared to the first quarter of 2024. Total loans increased by $1.4 billion as compared to the first quarter of 2024. The increase in loans was diversified across nearly all loan portfolios. Adjusting for the impact of a loan sale transaction of property and casualty insurance premium finance receivables during the second quarter of 2024, total loans would have increased $2.1 billion, or 20% annualized. Total liabilities increased by $2.1 billion in the second quarter of 2024 as compared to the first quarter of 2024 primarily due to a $1.6 billion increase in total deposits. Non-interest bearing deposits as a percentage of total deposits was 21% at both June 30, 2024 and March 31, 2024. The Company's loans to deposits ratio ended the quarter at 93.0%. For more information regarding changes in the Company's balance sheet, see Consolidated Statements of Condition and Table 1 through Table 3 in this report. NET INTEREST INCOME For the second quarter of 2024, net interest income totaled $470.6 million, an increase of $6.4 million as compared to the first quarter of 2024. The $6.4 million increase in net interest income in the second quarter of 2024 compared to the first quarter of 2024 was primarily due to a $1.9 billion increase in average earning assets partially offset by a seven basis point decrease in the net interest margin. Net interest margin was 3.50% (3.52% on a fully taxable-equivalent basis, non-GAAP) during the second quarter of 2024 compared to 3.57% (3.59% on a fully taxable-equivalent basis, non-GAAP) during the first quarter of 2024. The net interest margin decrease as compared to the first quarter of 2024 was primarily due to a 21 basis point increase in the rate paid on interest-bearing liabilities. This decrease was partially offset by a 12 basis point increase in yield on earning assets and a two basis point increase in the net free funds contribution. The 21 basis point increase on the rate paid on interest-bearing liabilities in the second quarter of 2024 as compared to the first quarter of 2024 was primarily due to a 25 basis point increase in the rate paid on interest-bearing deposits. The 12 basis point increase in the yield on earning assets in the second quarter of 2024 as compared to the first quarter of 2024 was primarily due to a 10 basis point expansion on loan yields and 11 basis point increase in yield on liquidity management assets. For more information regarding net interest income, see Table 4 through Table 8 in this report. ASSET QUALITY The allowance for credit losses totaled $437.6 million as of June 30, 2024, an increase of $10.1 million compared to $427.5 million as of March 31, 2024. A provision for credit losses totaling $40.1 million was recorded for the second quarter of 2024 as compared to $21.7 million recorded in the first quarter of 2024. For more information regarding the allowance for credit losses and provision for credit losses, see Table 11 in this report. Management believes the allowance for credit losses is appropriate to account for expected credit losses. The Current Expected Credit Losses accounting standard requires the Company to estimate expected credit losses over the life of the Company's financial assets as of the reporting date. There can be no assurances, however, that future losses will not significantly exceed the amounts provided for, thereby affecting future results of operations. A summary of the allowance for credit losses calculated for the loan components in each portfolio as of June 30, 2024, March 31, 2024, and December 31, 2023 is shown on Table 12 of this report. Net charge-offs totaled $30.0 million in the second quarter of 2024, as compared to $21.8 million of net charge-offs in the first quarter of 2024. Net charge-offs as a percentage of average total loans were 28 basis points in the second quarter of 2024 on an annualized basis compared to 21 basis points on an annualized basis in the first quarter of 2024. For more information regarding net charge-offs, see Table 10 in this report. The Company's delinquency rates remain low and manageable. For more information regarding past due loans, see Table 13 in this report. Non-performing assets totaled $194.0 million and comprised 0.32% of total assets as of June 30, 2024, as compared to $162.9 million, or 0.28% of total assets, as of March 31, 2024. Non-performing loans totaled $174.3 million and comprised 0.39% of total loans at June 30, 2024, as compared to $148.4 million and 0.34% of total loans at March 31, 2024. The increase in the second quarter of 2024 was primarily due to an increase in certain credits within the commercial and commercial real estate portfolios becoming nonaccrual. For more information regarding non-performing assets, see Table 14 in this report. Though these credit metrics increased during the period, net charge-offs as a percentage of average total loans and non-performing loans as a percentage of total loans remained at relatively low levels in the second quarter of 2024. NON-INTEREST INCOME Wealth management revenue was relatively stable in the second quarter of 2024 as compared to the first quarter of 2024. 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 $1.5 million in the second quarter of 2024 as compared to the first quarter of 2024 primarily due to $1.6 million higher production revenue from increased mortgage production as well as a favorable adjustment to the Company's held-for-sale portfolio of early buy-out exercised loans guaranteed by U.S. government agencies, which are held at fair value, of $642,000 in the second quarter of 2024 compared to a $2.2 million unfavorable adjustment in the first quarter of 2024. This was partially offset by a $105,000 favorable valuation adjustment to the fair value of mortgage servicing rights, net of servicing hedge, in the second quarter of 2024 compared to a $5.0 million favorable adjustment in the first quarter of 2024. The Company monitors the relationship of these assets and seeks to minimize the earnings impact of fair value changes. For more information regarding mortgage banking revenue, see Table 16 in this report. The Company recognized $4.3 million in net losses on investment securities in the second quarter of 2024 as compared to $1.3 million in net gains in the first quarter of 2024. The change from period to period was primarily the result of higher losses on the Company's equity investment securities in the second quarter of 2024. Fees from covered call options decreased by $2.8 million in the second quarter of 2024 as compared to the first quarter of 2024. The Company has typically written call options with terms of less than three months against certain U.S. Treasury and agency securities held in its portfolio for liquidity and other purposes. Management has entered into these transactions with the goal of economically hedging security positions and enhancing its overall return on its investment portfolio. These option transactions are designed to mitigate overall interest rate risk and do not qualify as hedges pursuant to accounting guidance. Other income decreased by $13.0 million in the second quarter of 2024 compared to the first quarter of 2024 primarily due to a $20.0 million gain related to the sale of the RBA division within the wealth management business recognized in the first quarter of 2024. This was partially offset by a favorable adjustment to the Company's held-for-investment portfolio of early buy-out exercised loans guaranteed by U.S. government agencies, which are held at fair value, of $1.0 million when compared to the first quarter of 2024, as well as less unfavorable foreign currency remeasurement adjustments when compared to the first quarter of 2024 and realized gains from the sale of certain loans during the second quarter of 2024. For more information regarding non-interest income, see Table 15 in this report. NON-INTEREST EXPENSE Salaries and employee benefits expense increased by $3.4 million in the second quarter of 2024 as compared to the first quarter of 2024. The $3.4 million increase is primarily related to higher incentive compensation expense due to elevated commissions from increased mortgage production as well as higher salaries due to a full quarter of the Company's annual merit increase. Advertising and marketing expenses in the second quarter of 2024 totaled $17.4 million, which is a $4.4 million increase as compared to the first quarter of 2024, primarily due to an increase in seasonal sports sponsorship costs. Marketing costs are incurred to promote the Company's brand, commercial banking capabilities and the Company's various products, to attract loans and deposits and to announce new branch openings as well as the expansion of the Company's non-bank businesses. The level of marketing expenditures depends on the timing of sponsorship programs utilized which are determined based on the market area, targeted audience, competition and various other factors. Generally, these expenses are elevated in the second and third quarters of each year. FDIC insurance, including amounts accrued for estimated special assessments, decreased $4.1 million in the second quarter of 2024 as compared to the first quarter of 2024. This was primarily the result of a $5.2 million 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 no such special assessment in the second quarter of 2024. For more information regarding non-interest expense, see Table 17 in this report. INCOME TAXES The Company recorded income tax expense of $59.0 million in the second quarter of 2024 compared to $62.7 million in the first quarter of 2024. The effective tax rates were 27.90% in the second quarter of 2024 compared to 25.07% in the first quarter of 2024. 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 $16,000 in the second quarter of 2024, compared to net excess tax benefits of $4.4 million in the first quarter of 2024 related to share-based compensation. BUSINESS UNIT SUMMARY Community Banking Through its community banking unit, the Company provides banking and financial services primarily to individuals, small to mid-sized businesses, local governmental units and institutional clients residing primarily in the local areas the Company services. In the second quarter of 2024, the community banking unit expanded its commercial, commercial real estate and residential real estate loan portfolios. Mortgage banking revenue was $29.1 million for the second quarter of 2024, an increase of $1.5 million as compared to the first quarter of 2024, primarily due to $1.6 million higher production revenue from increased mortgage production as well as a favorable adjustment to the Company's held-for-sale portfolio of early buy-out exercised loans guaranteed by U.S. government agencies, which are held at fair value, of $642,000 in the second quarter of 2024 compared to a $2.2 million unfavorable adjustment in the first quarter of 2024. This was partially offset by a $105,000 favorable valuation adjustment to the fair value of mortgage servicing rights, net of servicing hedge, in the second quarter of 2024 compared to a $5.0 million favorable adjustment in the first quarter of 2024. Service charges on deposit accounts totaled $15.5 million in the second quarter of 2024, which was relatively stable compared to the first quarter of 2024. The Company's gross commercial and commercial real estate loan pipelines remained solid as of June 30, 2024 indicating momentum for expected continued loan growth in the third 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 $5.5 billion during the second quarter of 2024. Average balances increased by $392.2 million, net of a loan sale transaction of property and casualty insurance premium finance receivables during the second quarter of 2024, as compared to the first quarter of 2024. The Company's leasing portfolio balance increased in the second quarter of 2024, with its portfolio of assets, including capital leases, loans and equipment on operating leases, totaling $3.7 billion as of June 30, 2024 as compared to $3.6 billion as of March 31, 2024. Revenues from the Company's out-sourced administrative services business were $1.3 million in the second quarter of 2024, which was relatively stable compared to the first quarter of 2024. Wealth Management Through four separate subsidiaries within its wealth management unit, the Company offers a full range of wealth management services, including trust and investment services, tax-deferred like-kind exchange services, asset management, and securities brokerage services. See "Items Impacting Comparative Results," regarding the sale of the RBA division during the first quarter of 2024. Wealth management revenue totaled $35.4 million in the second quarter of 2024, relatively stable as compared to the first quarter of 2024. At June 30, 2024, the Company's wealth management subsidiaries had approximately $48.2 billion of assets under administration, which included $8.8 billion of assets owned by the Company and its subsidiary banks. 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 second quarter of 2024, as compared to the first quarter of 2024 (sequential quarter) and second quarter of 2023 (linked quarter), are shown in the table below:               % or (1)basis point  (bp) change from1st Quarter2024   % orbasis point  (bp) change from2nd Quarter2023     Three Months Ended   (Dollars in thousands, except per share data)   Jun 30, 2024   Mar 31, 2024   Jun 30, 2023   Net income   $ 152,388     $ 187,294     $ 154,750   (19 ) %   (2 ) % Pre-tax income, excluding provision for credit losses (non-GAAP) (2)     251,404       271,629       239,944   (7 )     5     Net income per common share – Diluted     2.32       2.89       2.38   (20 )     (3 )   Cash dividends declared per common share     0.45       0.45       0.40   —       13     Net revenue (3)     591,757       604,774       560,567   (2 )     6     Net interest income     470,610       464,194       447,537   1       5     Net interest margin     3.50 %     3.57 %     3.64 % (7 ) bps   (14 ) bps Net interest margin – fully taxable-equivalent (non-GAAP) (2)     3.52       3.59       3.66   (7 )     (14 )   Net overhead ratio (4)     1.53       1.39       1.58   14       (5 )   Return on average assets     1.07       1.35       1.18   (28 )     (11 )   Return on average common equity     11.61       14.42       12.79   (281 )     (118 )   Return on average tangible common equity (non-GAAP) (2)     13.49       16.75       15.12   (326 )     (163 )   At end of period                       Total assets   $ 59,781,516     $ 57,576,933     $ 54,286,176   15   %   10   % Total loans (5)     44,675,531       43,230,706       41,023,408   13       9     Total deposits     48,049,026       46,448,858       44,038,707   14       9     Total shareholders' equity     5,536,628       5,436,400       5,041,912   7       10     (1) Period-end balance sheet percentage changes are annualized.(2) See Table 18: Supplemental Non-GAAP Financial Measures/Ratios for additional information on this performance measure/ratio.(3) Net revenue is net interest income plus non-interest income.(4) The net overhead ratio is calculated by netting total non-interest expense and total non-interest income, annualizing this amount, and dividing by that period's average total assets. A lower ratio indicates a higher degree of efficiency.(5) Excludes mortgage loans held-for-sale. Certain returns, yields, performance ratios, or quarterly growth rates are "annualized" in this presentation to represent an annual time period. This is done for analytical purposes to better discern, for decision-making purposes, underlying performance trends when compared to full-year or year-over-year amounts. For example, a 5% growth rate for a quarter would represent an annualized 20% growth rate. Additional supplemental financial information showing quarterly trends can be found on the Company's website at www.wintrust.com by choosing "Financial Reports" under the "Investor Relations" heading, and then choosing "Financial Highlights." WINTRUST FINANCIAL CORPORATIONSelected Financial Highlights     Three Months Ended Six Months Ended (Dollars in thousands, except per share data)   Jun 30, 2024   Mar 31, 2024   Dec 31, 2023   Sep 30, 2023   Jun 30, 2023 Jun 30, 2024   Jun 30, 2023 Selected Financial Condition Data (at end of period):       Total assets   $ 59,781,516     $ 57,576,933     $ 56,259,934     $ 55,555,246     $ 54,286,176         Total loans (1)     44,675,531       43,230,706       42,131,831       41,446,032       41,023,408         Total deposits     48,049,026       46,448,858       45,397,170       44,992,686       44,038,707         Total shareholders' equity     5,536,628       5,436,400       5,399,526       5,015,613       5,041,912         Selected Statements of Income Data:                           Net interest income   $ 470,610     $ 464,194     $ 469,974     $ 462,358     $ 447,537   $ 934,804     $ 905,532   Net revenue (2)     591,757       604,774       570,803       574,836       560,567     1,196,531       1,126,331   Net income     152,388       187,294       123,480       164,198       154,750     339,682       334,948   Pre-tax income, excluding provision for credit losses (non-GAAP) (3)     251,404       271,629       208,151       244,781       239,944     523,033       506,539   Net income per common share – Basic     2.35       2.93       1.90       2.57       2.41     5.28       5.26   Net income per common share – Diluted     2.32       2.89       1.87       2.53       2.38     5.21       5.18   Cash dividends declared per common share     0.45       0.45       0.40       0.40       0.40     0.90       0.80   Selected Financial Ratios and Other Data:                           Performance Ratios:                           Net interest margin     3.50 %     3.57 %     3.62 %     3.60 %     3.64 %   3.53 %     3.72 % Net interest margin – fully taxable-equivalent (non-GAAP) (3)     3.52       3.59       3.64       3.62       3.66     3.56       3.74   Non-interest income to average assets     0.85       1.02       0.73       0.82       0.86     0.93       0.85   Non-interest expense to average assets     2.38       2.41       2.62       2.41       2.44     2.40       2.39   Net overhead ratio (4)     1.53       1.39       1.89       1.59       1.58     1.46       1.54   Return on average assets     1.07       1.35       0.89       1.20       1.18     1.21       1.29   Return on average common equity     11.61       14.42       9.93       13.35       12.79     13.01       14.20   Return on average tangible common equity (non-GAAP) (3)     13.49       16.75       11.73       15.73       15.12     15.12       16.79   Average total assets   $ 57,493,184     $ 55,602,695     $ 55,017,075     $ 54,381,981     $ 52,601,953   $ 56,547,939     $ 52,340,090   Average total shareholders' equity     5,450,173       5,440,457       5,066,196       5,083,883       5,044,718     5,445,315       4,970,407   Average loans to average deposits ratio     95.1 %     94.5 %     92.9 %     92.4 %     94.3 %   94.8 %     93.7 % Period-end loans to deposits ratio     93.0       93.1       92.8       92.1       93.2         Common Share Data at end of period:                           Market price per common share   $ 98.56     $ 104.39     $ 92.75     $ 75.50     $ 72.62         Book value per common share     82.97       81.38       81.43       75.19       75.65         Tangible book value per common share (non-GAAP) (3)     72.01       70.40       70.33       64.07       64.50         Common shares outstanding     61,760,139       61,736,715       61,243,626       61,222,058       61,197,676         Other Data at end of period:                           Common equity to assets ratio     8.6 %     8.7 %     8.9 %     8.3 %     8.5 %       Tangible common equity ratio (non-GAAP) (3)     7.5       7.6       7.7       7.1       7.4         Tier 1 leverage ratio (5)     9.3       9.4       9.3       9.2       9.3         Risk-based capital ratios:                           Tier 1 capital ratio (5)     10.2       10.3       10.3       10.2       10.1         Common equity tier 1 capital ratio (5)     9.5       9.5       9.4       9.3       9.3         Total capital ratio (5)     12.0       12.2       12.1       12.0       12.0         Allowance for credit losses (6)   $ 437,560     $ 427,504     $ 427,612     $ 399,531     $ 387,786         Allowance for loan and unfunded lending-related commitment losses to total loans     0.98 %     0.99 %     1.01 %     0.96 %     0.94 %       Number of:                           Bank subsidiaries     15       15       15       15       15         Banking offices     177       176       174       174       175         (1) Excludes mortgage loans held-for-sale.(2) Net revenue is net interest income plus non-interest income.(3) See Table 18: Supplemental Non-GAAP Financial Measures/Ratios for additional information on this performance measure/ratio.(4) The net overhead ratio is calculated by netting total non-interest expense and total non-interest income, annualizing this amount, and dividing by that period's average total assets. A lower ratio indicates a higher degree of efficiency.(5) Capital ratios for current quarter-end are estimated.(6) The allowance for credit losses includes the allowance for loan losses, the allowance for unfunded lending-related commitments and the allowance for held-to-maturity securities losses. WINTRUST FINANCIAL CORPORATION AND SUBSIDIARIESCONSOLIDATED STATEMENTS OF CONDITION     (Unaudited)   (Unaudited)       (Unaudited)   (Unaudited)     Jun 30,   Mar 31,   Dec 31,   Sep 30,   Jun 30, (In thousands)     2024       2024       2023       2023       2023   Assets                     Cash and due from banks   $ 415,462     $ 379,825     $ 423,404     $ 418,088     $ 513,858   Federal funds sold and securities purchased under resale agreements     62       61       60       60       59   Interest-bearing deposits with banks     2,824,314       2,131,077       2,084,323       2,448,570       2,163,708   Available-for-sale securities, at fair value     4,329,957       4,387,598       3,502,915       3,611,835       3,492,481   Held-to-maturity securities, at amortized cost     3,755,924       3,810,015       3,856,916       3,909,150       3,564,473   Trading account securities     4,134       2,184       4,707       1,663       3,027   Equity securities with readily determinable fair value     112,173       119,777       139,268       134,310       116,275   Federal Home Loan Bank and Federal Reserve Bank stock     256,495       224,657       205,003       204,040       195,117   Brokerage customer receivables     13,682       13,382       10,592       14,042       15,722   Mortgage loans held-for-sale, at fair value     411,851       339,884       292,722       304,808       338,728   Loans, net of unearned income     44,675,531       43,230,706       42,131,831       41,446,032       41,023,408   Allowance for loan losses     (363,719 )     (348,612 )     (344,235 )     (315,039 )     (302,499 ) Net loans     44,311,812       42,882,094       41,787,596       41,130,993       40,720,909   Premises, software and equipment, net     722,295       744,769       748,966       747,501       749,393   Lease investments, net     275,459       283,557       281,280       275,152       274,351   Accrued interest receivable and other assets     1,671,334       1,580,142       1,551,899       1,674,681       1,455,748   Trade date securities receivable     —       —       690,722       —       —   Goodwill     655,955       656,181       656,672       656,109       656,674   Other acquisition-related intangible assets     20,607       21,730       22,889       24,244       25,653   Total assets   $ 59,781,516     $ 57,576,933     $ 56,259,934     $ 55,555,246     $ 54,286,176   Liabilities and Shareholders' Equity                     Deposits:                     Non-interest-bearing   $ 10,031,440     $ 9,908,183     $ 10,420,401     $ 10,347,006     $ 10,604,915   Interest-bearing     38,017,586       36,540,675       34,976,769       34,645,680       33,433,792   Total deposits     48,049,026       46,448,858       45,397,170       44,992,686       44,038,707   Federal Home Loan Bank advances     3,176,309       2,676,751       2,326,071       2,326,071       2,026,071   Other borrowings     606,579       575,408       645,813       643,999       665,219   Subordinated notes     298,113       437,965       437,866       437,731       437,628   Junior subordinated debentures     253,566       253,566       253,566       253,566       253,566   Accrued interest payable and other liabilities     1,861,295       1,747,985       1,799,922       1,885,580       1,823,073   Total liabilities     54,244,888       52,140,533       50,860,408       50,539,633       49,244,264   Shareholders' Equity:                     Preferred stock     412,500       412,500       412,500       412,500       412,500   Common stock     61,825       61,798       61,269       61,244       61,219   Surplus     1,964,645       1,954,532       1,943,806       1,933,226       1,923,623   Treasury stock     (5,760 )     (5,757 )     (2,217 )     (1,966 )     (1,966 ) Retained earnings     3,615,616       3,498,475       3,345,399       3,253,332       3,120,626   Accumulated other comprehensive loss     (512,198 )     (485,148 )     (361,231 )     (642,723 )     (474,090 ) Total shareholders' equity     5,536,628       5,436,400       5,399,526       5,015,613       5,041,912   Total liabilities and shareholders' equity   $ 59,781,516     $ 57,576,933     $ 56,259,934     $ 55,555,246     $ 54,286,176   WINTRUST FINANCIAL CORPORATION AND SUBSIDIARIESCONSOLIDATED STATEMENTS OF INCOME (UNAUDITED)   Three Months Ended Six Months Ended (Dollars in thousands, except per share data) Jun 30,2024   Mar 31,2024   Dec 31,2023   Sep 30,2023   Jun 30,2023 Jun 30, 2024   Jun 30, 2023 Interest income                         Interest and fees on loans $ 749,812     $ 710,341   $ 694,943     $ 666,260     $ 621,057 $ 1,460,153     $ 1,179,749   Mortgage loans held-for-sale   5,434       4,146     4,318       4,767       4,178   9,580       7,706   Interest-bearing deposits with banks   19,731       16,658     21,762       26,866       16,882   36,389       30,350   Federal funds sold and securities purchased under resale agreements   17       19     578       1,157       1   36       71   Investment securities   69,779       69,678     68,237       59,164       51,243   139,457       111,186   Trading account securities   13       18     15       6       6   31       20   Federal Home Loan Bank and Federal Reserve Bank stock   4,974       4,478     3,792       3,896       3,544   9,452       7,224   Brokerage customer receivables   219       175     203       284       265   394       560   Total interest income   849,979       805,513     793,848       762,400       697,176   1,655,492       1,336,866   Interest expense                         Interest on deposits   335,703       299,532     285,390       262,783       213,495   635,235       358,297   Interest on Federal Home Loan Bank advances   24,797       22,048     18,316       17,436       17,399   46,845       36,534   Interest on other borrowings   8,700       9,248     9,557       9,384       8,485   17,948       16,339   Interest on subordinated notes   5,185       5,487     5,522       5,491       5,523   10,672       11,011   Interest on junior subordinated debentures   4,984       5,004     5,089       4,948       4,737   9,988       9,153   Total interest expense   379,369       341,319     323,874       300,042       249,639   720,688       431,334   Net interest income   470,610       464,194     469,974       462,358       447,537   934,804       905,532   Provision for credit losses   40,061       21,673     42,908       19,923       28,514   61,734       51,559   Net interest income after provision for credit losses   430,549       442,521     427,066       442,435       419,023   873,070       853,973   Non-interest income                         Wealth management   35,413       34,815     33,275       33,529       33,858   70,228       63,803   Mortgage banking   29,124       27,663     7,433       27,395       29,981   56,787       48,245   Service charges on deposit accounts   15,546       14,811     14,522       14,217       13,608   30,357       26,511   (Losses) gains on investment securities, net   (4,282 )     1,326     2,484       (2,357 )     0   (2,956 )     1,398   Fees from covered call options   2,056       4,847     4,679       4,215       2,578   6,903       12,969   Trading gains (losses), net   70       677     (505 )     728       106   747       919   Operating lease income, net   13,938       14,110     14,162       13,863       12,227   28,048       25,273   Other   29,282       42,331     24,779       20,888       20,672   71,613       41,681   Total non-interest income   121,147       140,580     100,829       112,478       113,030   261,727       220,799   Non-interest expense                         Salaries and employee benefits   198,541       195,173     193,971       192,338       184,923   393,714       361,704   Software and equipment   29,231       27,731     27,779       25,951       26,205   56,962       50,902   Operating lease equipment   10,834       10,683     10,694       12,020       9,816   21,517       19,649   Occupancy, net   19,585       19,086     18,102       21,304       19,176   38,671       37,662   Data processing   9,503       9,292     8,892       10,773       9,726   18,795       19,135   Advertising and marketing   17,436       13,040     17,166       18,169       17,794   30,476       29,740   Professional fees   9,967       9,553     8,768       8,887       8,940   19,520       17,103   Amortization of other acquisition-related intangible assets   1,122       1,158     1,356       1,408       1,499   2,280       2,734   FDIC insurance   10,429       14,537     43,677       9,748       9,008   24,966       17,677   OREO expenses, net   (259 )     392     (1,559 )     120       118   133       (89 ) Other   33,964       32,500     33,806       29,337       33,418   66,464       63,575   Total non-interest expense   340,353       333,145     362,652       330,055       320,623   673,498       619,792   Income before taxes   211,343       249,956     165,243       224,858       211,430   461,299       454,980   Income tax expense   58,955       62,662     41,763       60,660       56,680   121,617       120,032   Net income $ 152,388     $ 187,294   $ 123,480     $ 164,198     $ 154,750 $ 339,682     $ 334,948   Preferred stock dividends   6,991       6,991     6,991       6,991       6,991   13,982       13,982   Net income applicable to common shares $ 145,397     $ 180,303   $ 116,489     $ 157,207     $ 147,759 $ 325,700     $ 320,966   Net income per common share - Basic $ 2.35     $ 2.93   $ 1.90     $ 2.57     $ 2.41 $ 5.28     $ 5.26   Net income per common share - Diluted $ 2.32     $ 2.89   $ 1.87     $ 2.53     $ 2.38 $ 5.21     $ 5.18   Cash dividends declared per common share $ 0.45     $ 0.45   $ 0.40     $ 0.40     $ 0.40 $ 0.90     $ 0.80   Weighted average common shares outstanding   61,839       61,481     61,236       61,213       61,192   61,660       61,072   Dilutive potential common shares   926       928     1,166       964       902   901       933   Average common shares and dilutive common shares   62,765       62,409     62,402       62,177       62,094   62,561       62,005   TABLE 1: LOAN PORTFOLIO MIX AND GROWTH RATES                     % Growth From (Dollars in thousands) Jun 30, 2024   Mar 31, 2024   Dec 31, 2023   Sep 30,2023   Jun 30, 2023 Dec 31, 2023 (1)   Jun 30, 2023 Balance:                         Mortgage loans held-for-sale, excluding early buy-out exercised loans guaranteed by U.S. government agencies $ 281,103   $ 193,064   $ 155,529   $ 190,511   $ 235,570 NM   19 % Mortgage loans held-for-sale, early buy-out exercised loans guaranteed by U.S. government agencies   130,748     146,820     137,193     114,297     103,158 (9 )   27   Total mortgage loans held-for-sale $ 411,851   $ 339,884   $ 292,722   $ 304,808   $ 338,728 82 %   22 %                           Core loans:                         Commercial                         Commercial and industrial $ 6,226,336   $ 6,105,968   $ 5,804,629   $ 5,894,732   $ 5,737,633 15 %   9 % Asset-based lending   1,465,867     1,355,255     1,433,250     1,396,591     1,465,848 5     0   Municipal   747,357     721,526     677,143     676,915     653,117 21     14   Leases   2,439,128     2,344,295     2,208,368     2,109,628     1,925,767 21     27   PPP loans   9,954     11,036     11,533     13,744     15,337 (20 )   (35 ) Commercial real estate                         Residential construction   55,019     57,558     58,642     51,550     51,689 (12 )   6   Commercial construction   1,866,701     1,748,607     1,729,937     1,547,322     1,409,751 16     32   Land   338,831     344,149     295,462     294,901     298,996 30     13   Office   1,585,312     1,566,748     1,455,417     1,422,748     1,404,422 18     13   Industrial   2,307,455     2,190,200     2,135,876     2,057,957     2,002,740 16     15   Retail   1,365,753     1,366,415     1,337,517     1,341,451     1,304,083 4     5   Multi-family   2,988,940     2,922,432     2,815,911     2,710,829     2,696,478 12     11   Mixed use and other   1,439,186     1,437,328     1,515,402     1,519,422     1,440,652 (10 )   (0 ) Home equity   356,313     340,349     343,976     343,258     336,974 7     6   Residential real estate                         Residential real estate loans for investment   2,933,157     2,746,916     2,619,083     2,538,630     2,455,392 24     19   Residential mortgage loans, early buy-out eligible loans guaranteed by U.S. government agencies   88,503     90,911     92,780     97,911     117,024 (9 )   (24 ) Residential mortgage loans, early buy-out exercised loans guaranteed by U.S. government agencies   45,675     52,439     57,803     71,062     70,824 (42 )   (36 ) Total core loans $ 26,259,487   $ 25,402,132   $ 24,592,729   $ 24,088,651   $ 23,386,727 14 %   12 %                           Niche loans:                         Commercial                         Franchise $ 1,150,460   $ 1,122,302   $ 1,092,532   $ 1,074,162   $ 1,091,164 5 %   5 % Mortgage warehouse lines of credit   593,519     403,245     230,211     245,450     381,043 95     56   Community Advantage - homeowners association   491,722     475,832     452,734     424,054     405,042 7     21   Insurance agency lending   1,030,119     964,022     921,653     890,197     925,520 14     11   Premium Finance receivables                         U.S. property & casualty insurance   6,142,654     6,113,993     5,983,103     5,815,346     5,900,228 1     4   Canada property & casualty insurance   958,099     826,026     920,426     907,401     862,470 32     11   Life insurance   7,962,115     7,872,033     7,877,943     7,931,808     8,039,273 2     (1 ) Consumer and other   87,356     51,121     60,500     68,963     31,941 143     173   Total niche loans $ 18,416,044   $ 17,828,574   $ 17,539,102   $ 17,357,381   $ 17,636,681 7 %   4 %                           Total loans, net of unearned income $ 44,675,531   $ 43,230,706   $ 42,131,831   $ 41,446,032   $ 41,023,408 7 %   9 % (1) Annualized. TABLE 2: DEPOSIT PORTFOLIO MIX AND GROWTH RATES                     % Growth From (Dollars in thousands) Jun 30,2024   Mar 31,2024   Dec 31,2023   Sep 30,2023   Jun 30,2023 Mar 31,2024 (1)   Jun 30, 2023 Balance:                         Non-interest-bearing $ 10,031,440     $ 9,908,183     $ 10,420,401     $ 10,347,006     $ 10,604,915   5 %   (5) % NOW and interest-bearing demand deposits   5,053,909       5,720,947       5,797,649       6,006,114       5,814,836   (47 )   (13 ) Wealth management deposits (2)   1,490,711       1,347,817       1,614,499       1,788,099       1,417,984   43     5   Money market   16,320,017       15,617,717       15,149,215       14,478,504       14,523,124   18     12   Savings   5,882,179       5,959,774       5,790,334       5,584,294       5,321,578   (5 )   11   Time certificates of deposit   9,270,770       7,894,420       6,625,072       6,788,669       6,356,270   70     46   Total deposits $ 48,049,026     $ 46,448,858     $ 45,397,170     $ 44,992,686     $ 44,038,707   14 %   9 % Mix:                         Non-interest-bearing   21 %     21 %     23 %     23 %     24 %       NOW and interest-bearing demand deposits   11       12       13       13       13         Wealth management deposits (2)   3       3       4       4       3         Money market   34       34       33       32       33         Savings   12       13       13       13       12         Time certificates of deposit   19       17       14       15       15         Total deposits   100 %     100 %     100 %     100 %     100 %       (1) Annualized.(2) Represents deposit balances of the Company's subsidiary banks from brokerage customers of Wintrust Investments, Chicago Deferred Exchange Company, LLC ("CDEC"), and trust and asset management customers of the Company. TABLE 3: TIME CERTIFICATES OF DEPOSIT MATURITY/RE-PRICING ANALYSISAs of June 30, 2024 (Dollars in thousands)   Total TimeCertificates ofDeposit   Weighted-AverageRate of MaturingTime Certificates of Deposit 1-3 months   $ 2,680,761   4.75 % 4-6 months     2,863,328   4.74   7-9 months     2,309,917   4.36   10-12 months     1,073,537   4.25   13-18 months     215,181   3.50   19-24 months     67,172   2.52   24+ months     60,874   1.90   Total   $ 9,270,770   4.53 % TABLE 4: QUARTERLY AVERAGE BALANCES