Wintrust Financial Corporation Earnings Release Presentation Q2 2019
Q2 2019 Highlights Performance Highlights vs. Q1 2019 Events (Q2 2019) • Opened a new branch in Waukegan, Illinois, as well as completed the acquisition of Rush-Oak Corporation, the parent company of Oak Bank, $81.5 million -$7.7 million with one branch in the city of Chicago Net Income Net Income • Announced an agreement to acquire STC Bancshares Corp., the parent $1.38 -$0.14 company of STC Capital Bank, which is expected to close in the third Diluted EPS1 Diluted EPS1 quarter of 2019 1.02% -14 bps2 ROA3 ROA3 Key Observations 2 9.68% -141 bps • Total period end loans were $751 million higher than average total loans in 4 4 ROE ROE the current quarter 2 1.64% -8 bps • Net interest income increased by $4.2 million compared to the first quarter Net Overhead Ratio Net Overhead Ratio of 2019 as the impact of a $797 million increase in average earning assets was partially offset by an eight basis point decline in net interest margin 63.17% +54 bps2 Efficiency Ratio (GAAP) Efficiency Ratio (GAAP) • Recognized $24.6 million of provision for credit losses and $22.3 million of net charge-offs, of which $15.2 million of provision for credit losses and $18.4 62.89% +55 bps2 million of net charge-offs related to three credits Efficiency Ratio (Non-GAAP5) Efficiency Ratio (Non-GAAP5) • Completed a subordinated debt issuance which generated proceeds of $297.5 As of 6/30/2019 vs. 3/31/2019 million, net of the underwriting discount, and contributed to increase the total capital ratio to approximately 12.3% $33.6 billion +$1.3 billion Total Assets Total Assets $25.3 billion +$1.1 billion Total Loans Total Loans $27.5 billion +$0.7 billion Total Deposits Total Deposits 1 Diluted EPS: Net Income Per Common Share - Diluted 2 Bps: Basis Points 3 ROA: Return on Average Assets 4 ROE: Return on Average Common Equity 5See Non-GAAP reconciliation on pg. 12 2
Earnings Summary Condensed Income Statement Current Q Difference vs. Current Q Net Income & ROA ($ in Millions) Thousands ($) Q2 2019 Q1 2019 Q2 2018 Net Interest Income $266,202 $4,216 $28,032 $89.6 $91.9 $89.1 $79.7 $81.5 Non-Interest Income $98,158 $16,501 $2,925 1.26% Net Revenue $364,360 $20,717 $30,957 1.24% Non-Interest Expense $229,607 $15,233 $22,838 1.16% Pre-Provision Net Revenue $134,753 $5,484 $8,119 1.05% 1.02% Provision For Credit Losses $24,580 $13,956 $19,537 Income Before Taxes $110,173 $(8,472) $(11,418) Q2 2018 Q3 2018 Q4 2018 Q1 2019 Q2 2019 Income Tax Expense $28,707 $(792) $(3,304) Net Income $81,466 $(7,680) $(8,114) Net Income ROA Preferred Stock Dividends $2,050 $— $— Net Income Available to Common Shares $79,416 $(7,680) $(8,114) Diluted EPS $1.38 $(0.14) $(0.15) Diluted EPS Trend ROA 1.02% -14 bps -24 bps ROE 9.68% -141 bps -226 bps $1.57 Key Observations $1.53 $1.52 • Q2 2019 Net Income: $81.5 million or $1.38 per diluted common $1.38 share $1.35 ◦ Diluted EPS decrease of 9.2% compared to the prior quarter and 9.8% compared to Q2 2018 • Pre-Provision Net Revenue increased by $5.5 million compared to the prior quarter Q2 2018 Q3 2018 Q4 2018 Q1 2019 Q2 2019 Diluted EPS 3
Year-to-Date ("YTD") 2019 Highlights Difference vs. Prior Performance Highlights Condensed Income Statement Current YTD vs. 6/30/2018 YTD Year YTD (6/30/2019 YTD) Thousands ($) 6/30/2019 6/30/2018 Net Interest Income $528,188 $64,936 $170.6 million -$0.9 million Non-Interest Income $179,815 $(1,097) Net Income Net Income Net Revenue $708,003 $63,839 $2.91 -$0.02 Non-Interest Expense $443,981 $42,863 Diluted EPS Diluted EPS Pre-Provision Net Revenue $264,022 $20,976 Provision For Credit Losses $35,204 $21,815 1.09% -14 bps Income Before Taxes $228,818 $(839) ROA ROA Income Tax Expense $58,206 $110 Net Income $170,612 $(949) 10.37% -125 bps Preferred Stock Dividends $4,100 $— ROE ROE Net Income Available to Common Shares $166,512 $(949) 1.68% +10 bps Diluted EPS $2.91 $(0.02) Net Overhead Ratio Net Overhead Ratio ROA 1.09% -14 bps 62.91% +67 bps ROE 10.37% -125 bps Efficiency Ratio (GAAP) Efficiency Ratio (GAAP) Key Observations 62.62% +63 bps 1 1 • YTD growth through June 30, 2019 has been as follows: Efficiency Ratio (Non-GAAP ) Efficiency Ratio (Non-GAAP ) ◦ Total assets - $2.4 billion or 15.5% annualized growth As of 6/30/2019 vs. 6/30/2018 ◦ Total loans - $1.5 billion or 12.6% annualized growth ◦ Total deposits - $1.4 billion or 11.0% annualized growth $33.6 billion +$4.2 billion • Net Interest Margin (GAAP) is 3.66% for the first six months of the year as Total Assets Total Assets compared to 3.58% over the same period in 2018 $25.3 billion +$2.7 billion Total Loans Total Loans $27.5 billion +$3.2 billion Total Deposits Total Deposits 1 See Non-GAAP reconciliation on pg.12 4
Loan Portfolio Key Observations Total Loans ($ in Billions) • Total loans increased $1.1 billion from the prior quarter-end and $2.7 billion Year-over-Year Change as compared to the prior year quarter-end. Increase in total loans includes $2.7B or 12% $25.3 $114 million of loans acquired from Oak Bank during the current quarter $23.8 $24.2 $23.1 $22.6 5.06% 5.07% • Loan growth during Q2 2019 was strongest in Premium Finance Receivables 4.87% - Commercial and Commercial Real Estate portfolios up $380 million and 4.73% 4.61% $303 million, respectively, compared to prior quarter-end. Commercial real estate growth included $85 million from the Oak Bank acquisition • Before the impact of scheduled payments and prepayments, gross 6/30/2018 9/30/2018 12/31/2018 3/31/2019 6/30/2019 commercial and commercial real estate loan pipelines were estimated to be approximately $1.2 billion to $1.3 billion at June 30, 2019. When adjusted for the probability of closing, the pipelines were estimated to be Total Loans Total Loan Yield approximately $750 million to $800 million at June 30, 2019 Loan Composition (as of 6/30/2019) Total Loans as of 6/30/2019 vs. 3/31/2019 ($ in Millions) 1% $79 $380 18% $(13) $25,305 33% $303 $65 13% $277 $(1) 4% 29% 2% $24,215 l l 19 ia ate ity ate ia nce her 19 /20 erc st qu st erc ra Ot /20 /31 m l E e E l E m su & /30 3 om ea m ea om In er 6 C al R Ho al R - C ife m rci nti les - L nsu me ide ab les Co om es eiv vab C R ec cei e R Re anc ce Fin an m Fin iu um rem mi P Pre 5
Deposit Portfolio Key Observations Total Deposits ($ in Billions) • Total deposits increased by $714 million from the prior quarter-end Year-over-Year Change $3.2B or 13% and $3.2 billion as compared to 6/30/2018. Increase in total $27.5 $26.8 deposits includes $158 million of deposits acquired from Oak Bank $26.1 during the current quarter $24.4 $24.9 1.29% 1.37% 1.06% 1.20% • Rate paid on interest bearing deposits increased 8 basis points from 0.84% the prior quarter • Non-interest bearing deposits increased $367 million from the prior 6/30/2018 9/30/2018 12/31/2018 3/31/2019 6/30/2019 quarter-end and comprise 24% of total deposits Total Deposits Total Interest Bearing Deposit Rate Deposit Composition (as of 6/30/2019) Total Deposits as of 6/30/2019 vs. 3/31/2019 ($ in Millions) $155 $27,519 20% 24% $94 $367 10% 10% $367 24% 12% $(160) $(109) $26,805 s t s t 019 ing DA sit ke ng osi 019 /2 ear D po ar avi ep /2 /31 B ing De M S f D /30 3 est ar nt ey s o 6 ter Be me on te -In est ge M fica on ter na rti N In Ma Ce nd th e a eal Tim OW W N 6
4.74% 4.74% Net Interest Margin 4.58% 4.45% 4.32% 1 Net Interest Margin (Quarterly Trends) Net Interest Margin, Fully Taxable-Equivalent (Non-GAAP ) 3.72% 3.63% 3.61% 3.63% 3.64% 4.74% 4.74% 4.58% 4.45% 4.32% 3.72% 0.03% NOT 3.63% 3.61% 3.63% 3.72% 3.64% 3.64% LINKED 3.70% (0.08)% 3.61% 3.59% 3.61% 3.62% (0.03)% 1.51% 1.40% 1.33% 1.17% 1.00% 9 g ix ds 9 201 icin M un 201 Q1 Pr lity e F Q2 sit abi re 1.51% epo Li et F 1.40% D ing N 1.33% ear st B ere 0.38% 0.38% 0.41% 1.17% Int 0.31% 0.33% sit 1.00% epo n-D No 0.31% 0.33% 0.38% 0.38% 0.41% Q2 2018 Q3 2018 Q4 2018 Q1 2019 Q2 2019 Key Observations Net Interest Margin Net Free Funds Contribution Q2 2018 Q3 2018 Q4 2018 Q1 2019 Q2 2019 • Net interest income totaled $266.2 million Earning Assets Yield Rate on Interest Bearing Liabilities ◦ An increase of $4.2 million as compared to Q1 2019 and Net Interest Margin (GAAP) $28.0 million as compared to Q2 2018 Net Interest Margin, Fully Taxable-Equivalent (Non-GAAP)1 • Net interest margin decreased by 8 bps from the prior quarter 4.74% 4.74% 4.58% Earning Assets Yield ◦ Earning assets yields were unchanged 4.45% ◦ Rate on interest bearing liabilities increased 11 bps 4.32% Net Free Funds Contribution ◦ Net free funds increased 3 bps Rate on Interest Bearing Liabilities 3.72% 3.63% 3.61% 3.63% 3.64% 1 See Non-GAAP reconciliation on pg. 12 7 3.61% 3.59% 3.61% 3.70% 3.62% 1.51% 1.33% 1.40% 1.17% 1.00% 0.41% 0.31% 0.33% 0.38% 0.38% Q2 2018 Q3 2018 Q4 2018 Q1 2019 Q2 2019 Net Interest Margin (GAAP) Net Interest Margin (Non-GAAP) Earning Assets Yield Net Free Funds Contribution Rate on Interest Bearing Liabilities
Credit Quality Non-Performing Loans ("NPLs") ($ in Millions) Net Charge-Offs ("NCOs") ($ in Millions) $127.2 0.36% $113.2 $117.6 $113.4 0.55% $22.3 $83.3 0.48% 0.49% 0.12% 0.45% 0.08% 0.09% 0.02% $7.2 $5.1 0.37% $4.7 $1.1 6/30/2018 9/30/2018 12/31/2018 3/31/2019 6/30/2019 Q2 2018 Q3 2018 Q4 2018 Q1 2019 Q2 2019 NPL $ NPLs as a % of Total Loans Allowance for Loan Losses at Period-End ($ in Millions) Key Observations $158.2 $160.4 $152.8 • Recognized $24.6 million of provision for credit losses and $22.3 $149.8 million of net charge-offs, of which $15.2 million of provision for $143.4 0.65% 0.65% credit losses and $18.4 million of net charge-offs related to three credits 0.64% • Allowance for loan losses as a percentage of total loans: 0.63% 0.63% 0.63% ◦ Total core loan portfolio: 0.91% ◦ Total consumer, niche and purchased loan portfolio: 0.22% 6/30/2018 9/30/2018 12/31/2018 3/31/2019 6/30/2019 • Allowance for loan losses as a percentage of total non-performing loans was 141.41% as of June 30, 2019 Total Allowance for Loan Losses Total Allowance for Loan Losses as a % of Total Loans 8
Non-Interest Income Non-Interest Income ($ in Millions) Operating Lease Income, Net ($ in Millions) $99.9 $98.2 $11.7 $95.2 $10.9 $10.8 $16.9 $81.7 $15.7 $14.9 $75.3 $9.3 $9.3 $8.7 $9.1 $9.2 $19.9 $233.2 $8.7 $9.1 $8.4 $11.7 $230.1 $9.1 $8.8 $224.2 $10.9 $10.8 $39.8 $42.0 $37.4 $24.2 $18.2 $22.6 $22.6 $22.7 $24.0 $24.1 $199.2 $194.2 Q2 2018 Q3 2018 Q4 2018 Q1 2019 Q2 2019 Q2 2018 Q3 2018 Q4 2018 Q1 2019 Q2 2019 Wealth Management Mortgage Banking Operating Lease Income, Net Operating Lease Income, net Service Charges on Deposits Lease Investments, Net (Period-End Balance) 1 Other Wealth Management Revenue ($ in Millions) Key Observations • Non-interest income totaled $98.2 million $24.1 $22.6 $22.6 $22.7 $24.0 ◦ An increase of $16.5 million as compared to Q1 2019 and $4.5 $4.8 $2.9 million as compared to Q2 2018 $5.8 $5.6 $5.0 $19.5 $19.3 $16.8 $17.0 $17.7 • Mortgage banking revenue increased $19.3 million as compared to Q1 2019 primarily as a result of higher production revenues and an $26.0 $25.9 $25.1 increase in the fair value of the mortgage servicing rights portfolio $24.6 $24.2 • Wealth management income increased $162,000 as compared to Q1 Q2 2018 Q3 2018 Q4 2018 Q1 2019 Q2 2019 2019 primarily due to increased brokerage commissions and asset management fees Trust and Asset Management Brokerage 1 Other NII - includes Interest Rate Swap Fees, BOLI, Administrative Services, FX Assets Under Administration ($ in Billions) Remeasurement Gains/(Losses), Early Pay-Offs of Capital Leases, Gains/(losses) on investment securities, net, Fees from covered call options, Trading gains/(losses), net 9 and Miscellaneous.
PENDING DATA Mortgage Banking Mortgage Banking Revenue ($ in Millions) MSR1 Value and Loans Serviced for Others ($ in Millions) $37.4 $42.0 $0.9 MSR - Payoffs/ $7,515 $39.8 Paydowns $9.8 $7,014 $11.3 $7.9 $24.2 MSR - Change in $6,546 $5.2 Fair Value Model $3.4 $18.2 Assumptions $5.4 $9.7 $5,904 $6.6 Production $5,229 $4.9 $5.7 Revenue $27.8 $29.9 $63.2 $74.5 $75.2 $71.0 $72.9 $25.3 Servicing $18.6 Income & Q2 2018 Q3 2018 Q4 2018 Q1 2019 Q2 2019 $16.6 Other $2.1 $1.1 $(1.4) $(2.0) $(4.1) MSR MSRs, at fair value Loans Serviced for Others $(1.4) $(1.1) Capitalization $(7.6) $(8.7) $(4.3) MSR Hedging Gains (Losses) Q2 2018 Q3 2018 Q4 2018 Q1 2019 Q2 2019 Q2 2018 Q3 2018 Q4 2018 Q1 2019 Q2 2019 % of MSRs to Loans 1.21% 1.26% 1.15% 1.01% 0.97% Serviced for Others Originations for Sale (Quarterly $ in Millions) Key Observations • Mortgage banking production revenue increased by $13.3 million $1,096 $1,152 $1,154 as mortgage originations for sale totaled $1.2 billion in the second $204 $200 $928 $301 quarter of 2019 as compared to $678 million in the first quarter of $123 $175 2019 $310 $678 $183 $289 $165 • Origination volume mix in Q2 2019: $769 $148 $642 $670 ◦ 63% Purchases / 37% Refinances $464 $365 • Mortgage servicing rights were impacted by a negative fair value Q2 2018 Q3 2018 Q4 2018 Q1 2019 Q2 2019 adjustment of $4.3 million in the current quarter, partially offset by hedging gains of $0.9 million Retail Originations Correspondent Originations Veterans First Originations 1 MSR: Mortgage Servicing Right 10
Non-Interest Expense Trending Non-Interest Expense ($ in Millions) Expense Management Ratios $229.6 1.79% $214.4 Salaries and 1.72% $206.8 $213.6 $211.3 $33.2 Employee Benefits 1.64% $26.8 $26.1 $29.4 $6.2 $26.9 $6.2 Equipment 1.57% $9.3 $8.4 $7.5 1.53% $8.8 $5.6 $8.8 $6.5 $9.9 $9.3 $8.3 $12.8 $6.9 $7.4 $8.5 $9.9 Occupancy, net $11.8 $11.1 $9.4 $15.9 $16.2 $13.7 $14.4 $16.0 $12.8 $10.8 $11.8 Advertising and 63.35% $10.5 $11.5 Marketing 62.89% Operating Lease 62.34% Equipment 61.76% Depreciation 61.23% $121.7 $123.9 $122.1 $125.7 $133.7 Professional Fees Data Processing Q2 2018 Q3 2018 Q4 2018 Q1 2019 Q2 2019 Other 1 2 3 Q2 2018 Q3 2018 Q4 2018 Q1 2019 Q2 2019 Net Overhead Ratio Efficiency Ratio (Non-GAAP) Non-Interest Expense - Current Quarter vs. Prior Quarter Q2 2019 Key Observations ($ in Millions) • Salary and employee benefits increase $4.5 $229.6 comprised of: $3.0 $1.0 ◦ $1.3 million in salaries primarily due to $8.0 increased staffing/merit increases $(1.3) ◦ $4.9 million commissions and incentive $214.4 compensation primarily due to increased mortgage origination volumes ◦ $1.8 million of benefits expense • Advertising and marketing increase primarily 19 its ng ng nt es 19 20 nef eti essi me ens 20 driven by seasonal sponsorships of local Q1 Be ark roc uip Exp Q2 yee d M a P Eq er plo an Dat Oth Em sing All sports franchises, deposit generation and and erti ries Adv brand awareness initiatives Sala 3 1 Other NIE - includes amortization of other intangible assets, FDIC insurance, OREO 2 Net Overhead Ratio - The net overhead ratio is calculated by netting total non- See Non-GAAP reconciliation expense, net, Commissions (3rd Party Brokers), Postage and Miscellaneous interest expense and total non-interest income, annualizing this amount, and dividing on pg.12 by that period's average total assets. A lower ratio indicates a higher degree of 11 efficiency.
Non-GAAP Reconciliation Three Months Ended Six Months Ended Reconciliation of Non-GAAP Net June 30, March 31, December 31, September 30, June 30, June 30, June 30, Interest Margin and Efficiency Ratio: 2019 2019 2018 2018 2018 2019 2018 (A) Interest Income (GAAP) $ 346,814 $ 333,970 $ 320,596 $ 304,962 $ 284,047 $ 680,784 $ 545,252 Taxable-equivalent adjustment: - Loans 1,031 1,034 980 941 812 2,065 1,482 - Liquidity Management Assets 568 565 586 575 566 1,133 1,097 - Other Earning Assets 1 2 4 3 1 3 4 (B) Interest Income (non-GAAP) $ 348,414 $ 335,571 $ 322,166 $ 306,481 $ 285,426 $ 683,985 $ 547,835 (C) Interest Expense (GAAP) $ 80,612 $ 71,984 $ 66,508 $ 57,399 $ 45,877 $ 152,596 $ 82,000 (D) Net Interest Income (GAAP) (A minus C) $ 266,202 $ 261,986 $ 254,088 $ 247,563 $ 238,170 $ 528,188 $ 463,252 (E) Net Interest Income (non-GAAP) (B minus C) $ 267,802 $ 263,587 $ 255,658 $ 249,082 $ 239,549 $ 531,389 $ 465,835 Net interest margin (GAAP) 3.62% 3.70% 3.61% 3.59% 3.61% 3.66% 3.58% Net interest margin, fully taxable-equivalent (non- GAAP) 3.64% 3.72% 3.63% 3.61% 3.63% 3.68% 3.60% (F) Non-interest income $ 98,158 $ 81,657 $ 75,308 $ 99,930 $ 95,233 $ 179,815 $ 180,912 (G) Gains (losses) on investment securities, net 864 1,364 (2,649) 90 12 2,228 (339) (H) Non-interest expense 229,607 214,374 211,333 213,637 206,769 443,981 401,118 Efficiency ratio (H/(D+F-G)) 63.17% 62.63% 63.65% 61.50% 62.02% 62.91% 62.24% Efficiency ratio (non-GAAP) (H/(E+F-G)) 62.89% 62.34% 63.35% 61.23% 61.76% 62.62% 61.99% The accounting and reporting policies of Wintrust conform to generally accepted accounting principles (“GAAP”) in the United States and prevailing practices in the banking industry. However, certain non-GAAP performance measures and ratios are used by management to evaluate and measure the Company’s performance. Management believes that these measures and ratios provide users of the Company’s financial information a more meaningful view of the performance of the Company's interest-earning assets and interest-bearing liabilities and of the Company’s operating efficiency. Other financial holding companies may define or calculate these measures and ratios differently. 12
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, which may include, but are not limited to, those listed below and the Risk Factors discussed under Item 1A of the Company’s 2018 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, and management’s long-term performance goals, as well as statements relating to the anticipated effects on 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: 1) economic conditions 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, particularly in the markets in which it operates; 2) negative effects suffered by us or our customers resulting from changes in U.S. trade policies; 3) the extent of defaults and losses on the Company’s loan portfolio, which may require further increases in its allowance for credit losses; 4) estimates of fair value of certain of the Company’s assets and liabilities, which could change in value significantly from period to period; 5) the financial success and economic viability of the borrowers of our commercial loans; 6) commercial real estate market conditions in the Chicago metropolitan area and southern Wisconsin; 7) the extent of commercial and consumer delinquencies and declines in real estate values, which may require further increases in the Company’s allowance for loan and lease losses; 8) inaccurate assumptions in our analytical and forecasting models used to manage our loan portfolio; 9) 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; 10) 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; 11) failure to identify and complete favorable acquisitions in the future or unexpected difficulties or developments related to the integration of the Company’s recent or future acquisitions; 12) unexpected difficulties and losses related to FDIC-assisted acquisitions; 13) harm to the Company’s reputation; 14) any negative perception of the Company’s financial strength; 15) ability of the Company to raise additional capital on acceptable terms when needed; 16) disruption in capital markets, which may lower fair values for the Company’s investment portfolio; 17) 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; 18) failure or breaches of our security systems or infrastructure, or those of third parties; 19) security breaches, including denial of service attacks, hacking, social engineering attacks, malware intrusion or data corruption attempts and identity theft; 20) adverse effects on our information technology systems resulting from failures, human error or cyberattacks; 21) 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; 22) increased costs as a result of protecting our customers from the impact of stolen debit card information; 23) accuracy and completeness of information the Company receives about customers and counterparties to make credit decisions; 24) ability of the Company to attract and retain senior management experienced in the banking and financial services industries; 25) environmental liability risk associated with lending activities; 26) the impact of any claims or legal actions to which the Company is subject, including any effect on our reputation; 27) losses incurred in connection with repurchases and indemnification payments related to mortgages and increases in reserves associated therewith; 28) the loss of customers as a result of technological changes allowing consumers to complete their financial transactions without the use of a bank; 29) the soundness of other financial institutions; 30) the expenses and delayed returns inherent in opening new branches and de novo banks; 31) examinations and challenges by tax authorities, and any unanticipated impact of the Tax Act; 32) changes in accounting standards, rules and interpretations such as the new CECL standard, and the impact on the Company’s financial statements; 33) the ability of the Company to receive dividends from its subsidiaries; 34) uncertainty about the future of LIBOR; 35) a decrease in the Company’s capital ratios, including as a result of declines in the value of its loan portfolios, or otherwise; 36) legislative or regulatory changes, particularly changes in regulation of financial services companies and/or the products and services offered by financial services companies; 37) a lowering of our credit rating; 38) changes in U.S. monetary policy and changes to the Federal Reserve’s balance sheet as a result of the end of its program of quantitative easing or otherwise; 39) restrictions upon our ability to market our products to consumers and limitations on our ability to profitably operate our mortgage business resulting from the Dodd-Frank Act; 40) increased costs of compliance, heightened regulatory capital requirements and other risks associated with changes in regulation and the regulatory environment; 41) the impact of heightened capital requirements; 42) increases in the Company’s FDIC insurance premiums, or the collection of special assessments by the FDIC; 43) delinquencies or fraud with respect to the Company’s premium finance business; 44) credit downgrades among commercial and life insurance providers that could negatively affect the value of collateral securing the Company’s premium finance loans; 45) the Company’s ability to comply with covenants under its credit facility; and 46) fluctuations in the stock market, which may have an adverse impact on the Company’s wealth management business and brokerage operation. 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 this presentation. Persons are advised, however, to consult further disclosures management makes on related subjects in its reports filed with the Securities and Exchange Commission and in its press releases. 13