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Wintrust Financial (WTFC)

Filed: 19 Jul 21, 5:27pm


Exhibit 99.1
Wintrust Financial Corporation
9700 W. Higgins Road, Suite 800, Rosemont, Illinois 60018
News Release
FOR IMMEDIATE RELEASE  July 19, 2021
FOR MORE INFORMATION CONTACT:
Edward J. Wehmer, Founder & Chief Executive Officer
David A. Dykstra, Vice Chairman & Chief Operating Officer
(847) 939-9000
Web site address: www.wintrust.com

Wintrust Financial Corporation Reports Second Quarter 2021 Net Income of $105.1 million and Year-To-Date Net Income of $258.3 million

ROSEMONT, ILLINOIS – Wintrust Financial Corporation (“Wintrust”, “the Company”, "we" or "our") (Nasdaq: WTFC) announced net income of $105.1 million or $1.70 per diluted common share for the second quarter of 2021, a decrease in diluted earnings per common share of 33% compared to the first quarter of 2021 and an increase of 400% compared to the second quarter of 2020. The Company recorded net income of $258.3 million or $4.24 per diluted common share for the first six months of 2021 compared to net income of $84.5 million or $1.38 per diluted common share for the same period of 2020.

Highlights of the Second Quarter of 2021:
Comparative information to the first quarter of 2021
Total loans, excluding Paycheck Protection Program ("PPP") loans, increased by $1.2 billion or 15%, on an annualized basis.
Core loans increased by $497 million and niche loans increased by $657 million primarily due to growth in the commercial insurance premium finance receivable portfolio. See Table 1 for more information.
PPP loans declined by $1.4 billion in the second quarter of 2021 primarily as a result of processing forgiveness payments on PPP loan balances originated in 2020. As of June 30, 2021, approximately 81% of PPP loan balances originated in 2020 have been forgiven, approximately 12% of balances are in the forgiveness review or submission process, and approximately 7% of balances have not applied for forgiveness.
Total assets increased by $1.1 billion.
Total deposits increased by $932 million, including a $499 million increase in non-interest bearing deposits.
Net interest income increased by $17.7 million primarily due to earning asset growth and increased PPP loan fee accretion.
In the second quarter of 2021, average loans and average investment securities increased by $642 million and $827 million, respectively, as compared to first quarter of 2021.
The Company recognized $25.2 million of PPP loan fee accretion in the second quarter of 2021 as compared to $19.2 million in the first quarter of 2021.
Net interest margin increased by nine basis points primarily due to increased PPP loan fee accretion and a seven basis point decline on the rate paid on interest bearing deposits.
Mortgage banking revenue decreased to $50.6 million for the second quarter of 2021 as compared to $113.5 million in the first quarter of 2021.
Recorded a negative provision for credit losses of $15.3 million in the second quarter of 2021 as compared to a negative provision for credit losses of $45.3 million in the first quarter of 2021.
Recorded net charge-offs of $1.9 million in the second quarter of 2021 as compared to net charge-offs of $13.3 million in the first quarter of 2021. Net charge-offs as a percentage of average total loans totaled two basis points in the second quarter of 2021 on an annualized basis as compared to 17 basis points on an annualized basis in the first quarter of 2021.
The allowance for credit losses on our core loan portfolio is approximately 1.49% of the outstanding balance as of June 30, 2021, down from 1.62% as of March 31, 2021. See Table 12 for more information. The allowance for credit losses to nonaccrual loans increased to 367.6% at June 30, 2021 compared to 341.3% as of March 31, 2021.
Non-performing loans declined to $87.7 million, or 0.27% of total loans, as of June 30, 2021 as compared to $99.1 million, or 0.30% of total loans, as of March 31, 2021.



Tangible book value per common share (non-GAAP) increased to $56.92 as compared to $55.42 as of March 31, 2021. See Table 18 for reconciliation of non-GAAP measures.
Closed on the previously announced sale of three branches in southwestern Wisconsin including $77 million of deposits, resulting in a net gain of $4.0 million recorded in other non-interest income.

Edward J. Wehmer, Founder and Chief Executive Officer, commented, "Wintrust reported net income of $105.1 million for the second quarter of 2021, down from $153.1 million in the first quarter of 2021. On a year-to-date basis, net income totaled $258.3 million for the first six months of 2021, up from $84.5 million in the first six months of 2020, a 206% increase. Additionally, the Company continues to grow as total assets of $46.7 billion as of June 30, 2021 increased by $1.1 billion as compared to March 31, 2021 and increased by $3.2 billion as compared to June 30, 2020. The second quarter of 2021 was characterized by strong organic loan growth, increased net interest income, a decline in mortgage banking revenue, a release of reserves as our credit quality and macroeconomic forecasts improved and a continued focus to increase franchise value in our market area."

Mr. Wehmer continued, "The Company experienced loan growth, excluding PPP loans, of $1.2 billion or 15%, on an annualized basis in the second quarter of 2021, including growth in its commercial, commercial real estate, residential real estate loans for investment, commercial insurance premium finance receivable and life insurance premium receivable portfolios. The loan growth was driven significantly by $563 million of growth in the commercial insurance premium finance receivable portfolio in part due to favorable market conditions for that portfolio. We are experiencing historically low commercial line of credit utilization and believe that a reversion to normal levels, coupled with robust loan pipelines, will materialize in future loan growth. Total deposits increased by $932 million as compared to the first quarter of 2021 including an increase in non-interest bearing deposits which now comprise 33% of total deposits. We continue to emphasize growing our franchise, including gathering low cost deposits, which we believe will drive value in the long term. Our loans to deposits ratio ended the quarter at 84.8% and we believe that we have sufficient liquidity to meet customer loan demand."

Mr. Wehmer commented, "Net interest income increased in the second quarter of 2021 primarily due to earning asset growth and increased PPP loan fee accretion. The Company recognized $25.2 million of PPP loan fee accretion in the second quarter of 2021 as compared to $19.2 million in the first quarter of 2021. Net interest margin improved by nine basis points in the second quarter of 2021 as compared to the first quarter of 2021 primarily due to increased PPP loan fee accretion and a seven basis point decline on the rate paid on interest bearing deposits. We continue to maintain excess liquidity and believe that deploying such liquidity could potentially increase our net interest margin. However, given the decline in long-term interest rates in the second quarter of 2021, we did not materially increase our investment portfolio due to the lack of adequate market returns."

Mr. Wehmer noted, “We recorded mortgage banking revenue of $50.6 million in the second quarter of 2021 as compared to $113.5 million in the first quarter of 2021. Loan volumes originated for sale in the second quarter of 2021 were $1.7 billion, down from $2.2 billion in the first quarter of 2021. Production margin in the second quarter of 2021 was impacted by lower gain on sale margins and a decline in the mortgage originations pipeline. Additionally, the Company recorded a $5.5 million decrease in the value of mortgage servicing rights related to changes in fair value model assumptions as compared to an $18.0 million increase recognized in the first quarter of 2021. We believe the third quarter of 2021 will provide another strong quarter for mortgage banking originations."

Commenting on credit quality, Mr. Wehmer stated, "The Company recorded a negative provision for credit losses of $15.3 million in the second quarter of 2021 related to both improving credit quality and macroeconomic forecasts. The level of non-performing loans decreased by $11.4 million primarily due to non-performing loan payments received during the quarter. Additionally, net charge-offs were limited totaling $1.9 million in the second quarter of 2021 as compared to $13.3 million in the first quarter of 2021. The allowance for credit losses on our core loan portfolio as of June 30, 2021 is approximately 1.49% of the outstanding balance. We believe that the Company’s reserves remain appropriate and we remain diligent in our review of credit."

Mr. Wehmer concluded, "Our second quarter of 2021 results continued to demonstrate the multi-faceted nature of our business model which we believe uniquely positions us to be successful. We expect to leverage our differentiated, diversified loan portfolio to outperform peers with respect to loan growth which should allow us to expand net interest income. We are focused on taking advantage of market opportunities to prudently deploy excess liquidity into earning assets including core and niche loans and investment securities while maintaining an interest rate sensitive asset portfolio. We are opportunistically evaluating the acquisition market which has been active for both banks and business lines of various sizes. Of course, we remain diligent in our consideration of acquisition targets and will be prudent in our decision-making, always seeking to minimize dilution. Finally, we evaluate our operating expense base on an ongoing basis to enhance future profitability."
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The graphs below illustrate certain financial highlights of the second quarter of 2021 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.
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SUMMARY OF RESULTS:

BALANCE SHEET

Total asset growth of $1.1 billion in the second quarter of 2021 was primarily comprised of a $1.4 billion increase in interest bearing deposits with banks, a $1.2 billion increase in total loans, excluding PPP loans, and an $86 million increase in investment securities. These increases were partially offset by a $1.4 billion decrease in PPP loans and a $275 million decrease in mortgage loans held-for-sale. Total loans, excluding PPP loans, increased by $1.2 billion primarily due to growth in the commercial, commercial real estate, residential real estate loans for investment, commercial insurance premium finance receivable and life insurance premium receivable portfolios. The Company believes that the $4.7 billion of interest-bearing deposits with banks held as of June 30, 2021 provides sufficient liquidity to operate its business plan.

Total liabilities increased $970 million in the second quarter of 2021 resulting primarily from a $932 million increase in total deposits. The increase in deposits was primarily due to a $607 million increase in money market deposits and a $499 million increase in non-interest bearing deposits. The Company's loans to deposits ratio ended the quarter at 84.8%. Management believes in substantially funding the Company's balance sheet with core deposits and utilizes brokered or wholesale funding sources as appropriate to manage its liquidity position as well as for interest rate risk management purposes.

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

NET INTEREST INCOME

For the second quarter of 2021, net interest income totaled $279.6 million, an increase of $17.7 million as compared to the first quarter of 2021 and an increase of $16.5 million as compared to the second quarter of 2020. The $17.7 million increase in net interest income in the second quarter of 2021 compared to the first quarter of 2021 was primarily due to earning asset growth and increased PPP loan fee accretion. The Company recognized $25.2 million of PPP loan fee accretion in the second quarter of 2021 as compared to $19.2 million in the first quarter of 2021. As of June 30, 2021, the Company had approximately $42.3 million of net PPP loan fees that have yet to be recognized in income, with approximately $24.0 million projected to be recognized in income in the second half of 2021. Such projection is based on current level yield assumptions primarily driven by the estimated timing of expected cash flow receipts related to forgiveness.

Net interest margin was 2.62% (2.63% on a fully taxable-equivalent basis, non-GAAP) during the second quarter of 2021 compared to 2.53% (2.54% on a fully taxable-equivalent basis, non-GAAP) during the first quarter of 2021 and down from 2.73% (2.74% on a fully taxable-equivalent basis, non-GAAP) during the second quarter of 2020. The net interest margin increase as compared to the prior quarter was primarily due to the seven basis point decrease in the rate paid on interest-bearing liabilities and a four basis point increase in the yield on earning assets partially offset by a two basis point decrease in the net free funds contribution. The decrease in the rate paid on interest-bearing liabilities in the second quarter of 2021 as compared to the prior quarter is primarily due to a seven basis point decrease in the rate paid on interest-bearing deposits primarily due to lower repricing of time deposits. The four basis point increase in the yield on earning assets in the second quarter of 2021 as compared to the first quarter of 2021 was primarily due to a 13 basis point increase in yield on liquidity management assets as a result of purchases of investment securities toward the end of the first quarter of 2021 and a three basis point increase in yield earned on loans.

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

ASSET QUALITY

The allowance for credit losses totaled $304.1 million as of June 30, 2021, a decrease of $17.2 million as compared to $321.3 million as of March 31, 2021. The allowance for credit losses decreased primarily due to improvements in the macroeconomic forecast in addition to improvement in portfolio characteristics throughout the quarter. Notably, there was a decrease in the allowance for credit losses in the Commercial Real Estate portfolio primarily driven by improvement in the forecasts of the Commercial Real Estate Price Index and Baa Corporate Credit Spreads. Other key drivers of allowance for credit losses changes include, but are not limited to, decreases in COVID-19 related loan modifications and positive loan risk rating migrations.

A negative provision for credit losses totaling $15.3 million was recorded for the second quarter of 2021 compared to a negative provision of $45.3 million for the first quarter of 2021 and $135.1 million of expense for the second quarter of 2020. For more information regarding the provision for credit losses, see Table 11 in this report.
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Management believes the allowance for credit losses is appropriate to account for expected credit losses. The Current Expected Credit Losses ("CECL") standard requires the Company to estimate expected credit losses over the life of the Company’s financial assets at a certain point in time. 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, 2021, March 31, 2021, and December 31, 2020 is shown on Table 12 of this report.

Net charge-offs totaled $1.9 million in the second quarter of 2021, an $11.4 million decrease from $13.3 million in the first quarter of 2021 and a $13.5 million decrease from $15.4 million in the second quarter of 2020. Net charge-offs as a percentage of average total loans totaled two basis points in the second quarter of 2021 on an annualized basis compared to 17 basis points on an annualized basis in the first quarter of 2021 and 20 basis points on an annualized basis in the second quarter of 2020. For more information regarding net charge-offs, see Table 10 in this report.

As of June 30, 2021, $19.3 million of all loans, or 0.1%, were 60 to 89 days past due and $73.9 million, or 0.2%, were 30 to 59 days (or one payment) past due. As of March 31, 2021, $28.0 million of all loans, or 0.1%, were 60 to 89 days past due and $151.7 million, or 0.5%, were 30 to 59 days (or one payment) past due. Many of the commercial and commercial real-estate loans shown as 60 to 89 days and 30 to 59 days past due are included on the Company’s internal problem loan reporting system. Loans on this system are closely monitored by management on a monthly basis.

The Company’s home equity and residential real estate loan portfolios continue to exhibit low delinquency rates as of June 30, 2021. Home equity loans at June 30, 2021 that are current with regard to the contractual terms of the loan agreement represent 98.8% of the total home equity portfolio. Residential real estate loans at June 30, 2021 that are current with regards to the contractual terms of the loan agreements comprised 98.3% of total residential real estate loans outstanding. For more information regarding past due loans, see Table 13 in this report.

The outstanding balance of COVID-19 related modified loans totaled approximately $146 million or 0.5% of total loans, excluding PPP loans as of June 30, 2021 as compared to $254 million or 0.8% as of March 31, 2021. The most significant proportion of outstanding modifications changed terms to interest-only payments.

The ratio of non-performing assets to total assets was 0.22% as of June 30, 2021, compared to 0.25% at March 31, 2021, and 0.46% at June 30, 2020. Non-performing assets totaled $103.3 million at June 30, 2021, compared to $114.9 million at March 31, 2021 and $198.5 million at June 30, 2020. Non-performing loans totaled $87.7 million, or 0.27% of total loans, at June 30, 2021 compared to $99.1 million, or 0.30% of total loans, at March 31, 2021 and $188.3 million, or 0.60% of total loans, at June 30, 2020. The decrease in non-performing loans as of June 30, 2021 as compared to March 31, 2021 is primarily due to payments throughout the quarter. OREO totaled $15.6 million at June 30, 2021, a decrease of $241,000 compared to $15.8 million at March 31, 2021 and an increase of $5.4 million compared to $10.2 million at June 30, 2020. Management is pursuing the resolution of all non-performing assets. At this time, management believes OREO is appropriately valued at the lower of carrying value or fair value less estimated costs to sell. For more information regarding non-performing assets, see Table 14 in this report.

NON-INTEREST INCOME

Wealth management revenue increased by $1.4 million during the second quarter of 2021 as compared to the first quarter of 2021 primarily due to increased trust and asset management fees. Wealth management revenue is comprised of the trust and asset management revenue of The Chicago Trust Company and Great Lakes Advisors, the brokerage commissions, managed money fees and insurance product commissions at Wintrust Investments and fees from tax-deferred like-kind exchange services provided by the Chicago Deferred Exchange Company.

Mortgage banking revenue decreased by $62.9 million in the second quarter of 2021 as compared to the first quarter of 2021, primarily due to a $33.8 million decrease in production revenue from lower originations for sale and lower gain on sale margins and a $5.5 million unfavorable mortgage servicing rights portfolio fair value adjustment as compared to an $18.0 million increase recognized in the prior quarter related to changes in fair value model assumptions. Loans originated for sale were $1.7 billion in the second quarter of 2021, a decrease of $498.0 million as compared to the first quarter of 2021. The percentage of origination volume from refinancing activities was 47% in the second quarter of 2021 as compared to 73% in the first quarter of 2021. Mortgage banking revenue includes revenue from activities related to originating, selling and servicing residential real estate loans for the secondary market.

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During the second quarter of 2021, the fair value of the mortgage servicing rights portfolio increased primarily due to the capitalization of $17.5 million of servicing rights partially offset by a reduction in value of $8.5 million due to payoffs and paydowns of the existing portfolio and a fair value adjustment decrease of $5.5 million. No economic hedges were outstanding relative to the mortgage servicing rights portfolio during the first or second quarter of 2021.

Operating lease income decreased by $2.2 million in the second quarter of 2021 as compared to the first quarter of 2021. The decrease is primarily due to a $1.5 million gain recognized on sale of lease assets in the first quarter of 2021.

Other non-interest income increased by $4.7 million in the second quarter of 2021 as compared to the first quarter of 2021 primarily due to a $4.0 million net gain recorded on the previously announced sale of three branches in southwestern Wisconsin.

For more information regarding non-interest income, see Tables 15 and 16 in this report.

NON-INTEREST EXPENSE

Salaries and employee benefits expense decreased by $8.0 million in the second quarter of 2021 as compared to the first quarter of 2021. The $8.0 million decrease is comprised of a decrease of $7.6 million in commissions and incentive compensation and a decrease of $412,000 in employee benefits expense. Salaries expense was effectively unchanged from the first quarter of 2021 to the second quarter of 2021. The decrease in commissions and incentive compensation is primarily due to lower commissions related to a decline in total mortgage originations for sale and investment.

Advertising and marketing expense totaled $11.3 million in the second quarter of 2021, an increase of $2.8 million as compared to the first quarter of 2021. The increase in the second quarter relates primarily to increased sponsorship activity for the summer months. Marketing costs are incurred to promote the Company's brand, commercial banking capabilities and 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.

Miscellaneous expense in the second quarter of 2021 decreased by $55,000 as compared to the first quarter of 2021. The second quarter of 2021 included a $1.4 million reversal of contingent consideration expense related to the previous acquisition of mortgage operations as compared to a $937,000 reversal of contingent consideration expense in the first quarter of 2021. The liability for contingent consideration expense related to the previous acquisition of mortgage operations is based upon forward looking mortgage origination volumes and the estimated profitability of that operation. Should those assumptions change going forward, the liability may need to be increased or decreased. The contractual period covering contingent consideration ends in January 2023 and the final two years of the contract contemplate a lower ratio of contingent consideration relative to financial performance. Miscellaneous expense also includes ATM expenses, correspondent bank charges, directors fees, telephone, travel and entertainment, corporate insurance, dues and subscriptions, problem loan expenses and lending origination costs that are not deferred.

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

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INCOME TAXES

The Company recorded income tax expense of $39.0 million in the second quarter of 2021 compared to $53.7 million in the first quarter of 2021 and $9.0 million in the second quarter of 2020. The effective tax rates were 27.08% in the second quarter of 2021 compared to 25.97% in the first quarter of 2021 and 29.46% in the second quarter of 2020.

The slightly higher effective tax rate in the second quarter of 2021 as compared to the first quarter of 2021 was primarily due to the recognition of excess tax benefits on stock compensation in the first quarter, and the higher effective rate in the second quarter of 2020 as compared to the 2021 periods was primarily a result of a significantly reduced amount of pretax income in the period.

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 2021, this unit expanded its loan portfolio and its deposit portfolio. In addition, the segment's net interest margin increased in the second quarter of 2021 as compared to the first quarter of 2021.

Mortgage banking revenue was $50.6 million for the second quarter of 2021, a decrease of $62.9 million as compared to the first quarter of 2021 primarily due to a $33.8 million decrease in production revenue resulting from lower originations for sale and lower gain on sale margins and a $5.5 million decrease in the value of mortgage servicing rights related to changes in fair value model assumptions as compared to an $18.0 million favorable fair value adjustment in the prior quarter related to changes in fair value model assumptions. Service charges on deposit accounts totaled $13.2 million in the second quarter of 2021, an increase of $1.2 million as compared to the first quarter of 2021 primarily due to higher account analysis fees. The Company's gross commercial and commercial real estate loan pipelines remained strong as of June 30, 2021. Before the impact of scheduled payments and prepayments, gross commercial and commercial real estate loan pipelines were estimated to be approximately $1.2 billion to $1.3 billion at June 30, 2021. When adjusted for the probability of closing, the pipelines were estimated to be approximately $700 million to $800 million at June 30, 2021.

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 portfolio were $3.4 billion during the second quarter of 2021 and average balances increased by $472.8 million as compared to the first quarter of 2021. The increase in average balances in the insurance premium finance receivables portfolios more than offset the related margin compression, attributed to lower market rates of interest, resulting in a $3.0 million increase in interest income. The Company's leasing business remained effectively unchanged from the first quarter of 2021 to the second quarter of 2021, with its portfolio of assets, including capital leases, loans and equipment on operating leases, at $2.2 billion at the end of the second quarter of 2021. Revenues from the Company's out-sourced administrative services business were $1.2 million in the second quarter of 2021, essentially unchanged from the first quarter of 2021.

Wealth Management

Through four separate subsidiaries within its wealth management unit, the Company offers a full range of wealth management services, including trust and investment services, tax-deferred like-kind exchange services, asset management, securities brokerage services and 401(k) and retirement plan services. Wealth management revenue totaled $30.7 million in the second quarter of 2021, an increase of $1.4 million compared to the first quarter of 2021. Increases in asset management fees were primarily due to favorable equity market performance during the second quarter of 2021. At June 30, 2021, the Company’s wealth management subsidiaries had approximately $34.2 billion of assets under administration, which included $4.7 billion of assets owned by the Company and its subsidiary banks, representing a $2.0 billion increase from the $32.2 billion of assets under administration at March 31, 2021.


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WINTRUST FINANCIAL CORPORATION
Key Operating Measures

Wintrust’s key operating measures and growth rates for the second quarter of 2021, as compared to the first quarter of 2021 (sequential quarter) and second quarter of 2020 (linked quarter), are shown in the table below:
% or(1)
basis point  (bp) change from
1st Quarter
2021
% or
basis point  (bp)
change from
2nd Quarter
2020
  Three Months Ended
(Dollars in thousands, except per share data)Jun 30, 2021Mar 31, 2021Jun 30, 2020
Net income$105,109 $153,148 $21,659 (31)385 
Pre-tax income, excluding provision for credit losses (non-GAAP) (2)
128,851 161,512 165,756 (20)(22)
Net income per common share – diluted1.70 2.54 0.34 (33)400 
Net revenue (3)
408,963 448,401 425,124 (9)(4)
Net interest income279,590 261,895 263,131 
Net interest margin2.62 %2.53 %2.73 %bps(11)bps
Net interest margin - fully taxable equivalent (non-GAAP) (2)
2.63 2.54 2.74 (11)
Net overhead ratio (4)
1.32 0.90 0.93 42 39 
Return on average assets0.92 1.38 0.21 (46)71 
Return on average common equity10.24 15.80 2.17 (556)807 
Return on average tangible common equity (non-GAAP) (2)
12.62 19.49 2.95 (687)967 
At end of period
Total assets$46,738,450$45,682,202$43,540,017
Total loans (5)
32,911,18733,171,23331,402,903(3)
Total deposits38,804,61637,872,65235,651,87410 
Total shareholders’ equity4,339,0114,252,5113,990,218
(1)Period-end balance sheet percentage changes are annualized.
(2)See "Supplemental Non-GAAP Financial Measures/Ratios" at Table 18 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.”


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WINTRUST FINANCIAL CORPORATION
Selected Financial Highlights
 Three Months EndedSix Months Ended
(Dollars in thousands, except per share data)Jun 30, 2021Mar 31, 2021Dec 31, 2020Sep 30, 2020Jun 30, 2020Jun 30, 2021Jun 30, 2020
Selected Financial Condition Data (at end of period):
Total assets$46,738,450$45,682,202$45,080,768$43,731,718$43,540,017
Total loans (1)
32,911,18733,171,23332,079,07332,135,55531,402,903
Total deposits38,804,61637,872,65237,092,65135,844,42235,651,874
Junior subordinated debentures253,566253,566253,566253,566253,566
Total shareholders’ equity4,339,0114,252,5114,115,9954,074,0893,990,218
Selected Statements of Income Data:
Net interest income$279,590 $261,895 $259,397 $255,936 $263,131 $541,485 $524,574 
Net revenue (2)
408,963 448,401 417,758 426,529 425,124 857,364 799,809 
Net income105,109 153,148 101,204 107,315 21,659 258,257 84,471 
Pre-tax income, excluding provision for credit losses (non-GAAP) (3)
128,851 161,512 135,891 162,310 165,756 290,363 305,800 
Net income per common share – Basic1.72 2.57 1.64 1.68 0.34 4.29 1.40 
Net income per common share – Diluted1.70 2.54 1.63 1.67 0.34 4.24 1.38 
Selected Financial Ratios and Other Data:
Performance Ratios:
Net interest margin2.62 %2.53 %2.53 %2.56 %2.73 %2.58 %2.91 %
Net interest margin - fully taxable equivalent (non-GAAP) (3)
2.63 2.54 2.54 2.57 2.74 2.59 2.93 
Non-interest income to average assets1.13 1.68 1.44 1.58 1.55 1.40 1.41 
Non-interest expense to average assets2.45 2.59 2.56 2.45 2.48 2.51 2.53 
Net overhead ratio (4)
1.32 0.90 1.12 0.87 0.93 1.11 1.12 
Return on average assets0.92 1.38 0.92 0.99 0.21 1.15 0.43 
Return on average common equity10.24 15.80 10.30 10.66 2.17 12.97 4.48 
Return on average tangible common equity (non-GAAP) (3)
12.62 19.49 12.95 13.43 2.95 15.99 5.81 
Average total assets$45,946,751$44,988,733$43,810,005$42,962,844$42,042,729$45,470,389$39,334,109
Average total shareholders’ equity4,256,7784,164,8904,050,2864,034,9023,908,8464,211,088 3,809,508 
Average loans to average deposits ratio86.7 %87.1 %87.9 %89.6 %87.8 %86.9 %88.9 %
Period-end loans to deposits ratio84.8 87.6 86.5 89.7 88.1 
Common Share Data at end of period:
Market price per common share$75.63 $75.80 $61.09 $40.05 $43.62 
Book value per common share68.81 67.34 65.24 63.57 62.14 
Tangible book value per common share (non-GAAP) (3)
56.92 55.42 53.23 51.70 50.23 
Common shares outstanding57,066,67757,023,27356,769,62557,601,99157,573,672
Other Data at end of period:
Tier 1 leverage ratio (5)
8.2 %8.2 %8.1 %8.2 %8.1 %
Risk-based capital ratios:
Tier 1 capital ratio (5)
10.1 10.2 10.0 10.2 10.1 
Common equity tier 1 capital ratio(5)
8.9 9.0 8.8 9.0 8.8 
Total capital ratio (5)
12.3 12.6 12.6 12.9 12.8 
Allowance for credit losses (6)
$304,121 $321,308 $379,969 $388,971 $373,174 
Allowance for loan and unfunded lending-related commitment losses to total loans0.92 %0.97 %1.18 %1.21 %1.19 %
Number of:
Bank subsidiaries15 15 15 15 15 
Banking offices172 182 181 182 186 
(1)Excludes mortgage loans held-for-sale.
(2)Net revenue is net interest income and non-interest income.
(3)See “Supplemental Non-GAAP Financial Measures/Ratios” at Table 18 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 total average 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.
14


WINTRUST FINANCIAL CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CONDITION
 
(Unaudited)(Unaudited)(Unaudited)(Unaudited)
Jun 30,Mar 31,Dec 31,Sep 30,Jun 30,
(In thousands)20212021202020202020
Assets
Cash and due from banks$434,957 $426,325 $322,415 $308,639 $344,999 
Federal funds sold and securities purchased under resale agreements52 52 59 56 58 
Interest-bearing deposits with banks4,707,415 3,348,794 4,802,527 3,825,823 4,015,072 
Available-for-sale securities, at fair value2,188,608 2,430,749 3,055,839 2,946,459 3,194,961 
Held-to-maturity securities, at amortized cost2,498,232 2,166,419 579,138 560,267 728,465 
Trading account securities2,667 951 671 1,720 890 
Equity securities with readily determinable fair value86,316 90,338 90,862 54,398 52,460 
Federal Home Loan Bank and Federal Reserve Bank stock136,625 135,881 135,588 135,568 135,571 
Brokerage customer receivables23,093 19,056 17,436 16,818 14,623 
Mortgage loans held-for-sale984,994 1,260,193 1,272,090 959,671 833,163 
Loans, net of unearned income32,911,187 33,171,233 32,079,073 32,135,555 31,402,903 
Allowance for loan losses(261,089)(277,709)(319,374)(325,959)(313,510)
Net loans32,650,098 32,893,524 31,759,699 31,809,596 31,089,393 
Premises and equipment, net752,375 760,522 768,808 774,288 769,909 
Lease investments, net219,023 238,984 242,434 230,373 237,040 
Accrued interest receivable and other assets1,185,811 1,230,362 1,351,455 1,424,728 1,437,832 
Trade date securities receivable189,851 — — — — 
Goodwill646,336 646,017 645,707 644,644 644,213 
Other intangible assets31,997 34,035 36,040 38,670 41,368 
Total assets$46,738,450 $45,682,202 $45,080,768 $43,731,718 $43,540,017 
Liabilities and Shareholders’ Equity
Deposits:
Non-interest-bearing$12,796,110 $12,297,337 $11,748,455 $10,409,747 $10,204,791 
Interest-bearing26,008,506 25,575,315 25,344,196 25,434,675 25,447,083 
Total deposits38,804,616 37,872,652 37,092,651 35,844,422 35,651,874 
Federal Home Loan Bank advances1,241,071 1,228,436 1,228,429 1,228,422 1,228,416 
Other borrowings518,493 516,877 518,928 507,395 508,535 
Subordinated notes436,719 436,595 436,506 436,385 436,298 
Junior subordinated debentures253,566 253,566 253,566 253,566 253,566 
Trade date securities payable 995 200,907 — — 
Accrued interest payable and other liabilities1,144,974 1,120,570 1,233,786 1,387,439 1,471,110 
Total liabilities42,399,439 41,429,691 40,964,773 39,657,629 39,549,799 
Shareholders’ Equity:
Preferred stock412,500 412,500 412,500 412,500 412,500 
Common stock58,770 58,727 58,473 58,323 58,294 
Surplus1,669,002 1,663,008 1,649,990 1,647,049 1,643,864 
Treasury stock(100,363)(100,363)(100,363)(44,891)(44,891)
Retained earnings2,288,969 2,208,535 2,080,013 2,001,949 1,921,048 
Accumulated other comprehensive income (loss)10,133 10,104 15,382 (841)(597)
Total shareholders’ equity4,339,011 4,252,511 4,115,995 4,074,089 3,990,218 
Total liabilities and shareholders’ equity$46,738,450 $45,682,202 $45,080,768 $43,731,718 $43,540,017 
15


WINTRUST FINANCIAL CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED)
Three Months EndedSix Months Ended
(In thousands, except per share data)Jun 30,
2021
Mar 31,
2021
Dec 31,
2020
Sep 30,
2020
Jun 30,
2020
Jun 30, 2021Jun 30, 2020
Interest income
Interest and fees on loans$284,701 $274,100 $280,185 $280,479 $294,746 $558,801 $596,585 
Mortgage loans held-for-sale8,183 9,036 6,357 5,791 4,764 17,219 7,929 
Interest-bearing deposits with banks1,153 1,199 1,294 1,181 1,310 2,352 6,078 
Federal funds sold and securities purchased under resale agreements — — — 16  102 
Investment securities23,623 19,264 18,243 21,819 27,105 42,887 59,572 
Trading account securities1 11 13 3 20 
Federal Home Loan Bank and Federal Reserve Bank stock1,769 1,745 1,775 1,774 1,765 3,514 3,342 
Brokerage customer receivables149 123 116 106 97 272 255 
Total interest income319,579 305,469 307,981 311,156 329,816 625,048 673,883 
Interest expense
Interest on deposits24,298 27,944 32,602 39,084 50,057 52,242 117,492 
Interest on Federal Home Loan Bank advances4,887 4,840 4,952 4,947 4,934 9,727 8,294 
Interest on other borrowings2,568 2,609 2,779 3,012 3,436 5,177 6,982 
Interest on subordinated notes5,512 5,477 5,509 5,474 5,506 10,989 10,978 
Interest on junior subordinated debentures2,724 2,704 2,742 2,703 2,752 5,428 5,563 
Total interest expense39,989 43,574 48,584 55,220 66,685 83,563 149,309 
Net interest income279,590 261,895 259,397 255,936 263,131 541,485 524,574 
Provision for credit losses(15,299)(45,347)1,180 25,026 135,053 (60,646)188,014 
Net interest income after provision for credit losses294,889 307,242 258,217 230,910 128,078 602,131 336,560 
Non-interest income
Wealth management30,690 29,309 26,802 24,957 22,636 59,999 48,577 
Mortgage banking50,584 113,494 86,819 108,544 102,324 164,078 150,650 
Service charges on deposit accounts13,249 12,036 11,841 11,497 10,420 25,285 21,685 
Gains (losses) on investment securities, net1,285 1,154 1,214 411 808 2,439 (3,551)
Fees from covered call options1,388 — — — — 1,388 2,292 
Trading (losses) gains, net(438)419 (102)183 (634)(19)(1,085)
Operating lease income, net12,240 14,440 12,118 11,717 11,785 26,680 23,769 
Other20,375 15,654 19,669 13,284 14,654 36,029 32,898 
Total non-interest income129,373 186,506 158,361 170,593 161,993 315,879 275,235 
Non-interest expense
Salaries and employee benefits172,817 180,809 171,116 164,042 154,156 353,626 290,918 
Equipment20,866 20,912 20,565 17,251 15,846 41,778 30,680 
Operating lease equipment depreciation9,949 10,771 9,938 9,425 9,292 20,720 18,552 
Occupancy, net17,687 19,996 19,687 15,830 16,893 37,683 34,440 
Data processing6,920 6,048 5,728 5,689 10,406 12,968 18,779 
Advertising and marketing11,305 8,546 9,850 7,880 7,704 19,851 18,566 
Professional fees7,304 7,587 6,530 6,488 7,687 14,891 14,408 
Amortization of other intangible assets2,039 2,007 2,634 2,701 2,820 4,046 5,683 
FDIC insurance6,405 6,558 7,016 6,772 7,081 12,963 11,216 
OREO expense, net769 (251)(114)(168)237 518 (639)
Other24,051 23,906 28,917 28,309 27,246 47,957 51,406 
Total non-interest expense280,112 286,889 281,867 264,219 259,368 567,001 494,009 
Income before taxes144,150 206,859 134,711 137,284 30,703 351,009 117,786 
Income tax expense39,041 53,711 33,507 29,969 9,044 92,752 33,315 
Net income$105,109 $153,148 $101,204 $107,315 $21,659 $258,257 $84,471 
Preferred stock dividends6,991 6,991 6,991 10,286 2,050 13,982 4,100 
Net income applicable to common shares$98,118 $146,157 $94,213 $97,029 $19,609 $244,275 $80,371 
Net income per common share - Basic$1.72 $2.57 $1.64 $1.68 $0.34 $4.29 $1.40 
Net income per common share - Diluted$1.70 $2.54 $1.63 $1.67 $0.34 $4.24 $1.38 
Cash dividends declared per common share$0.31 $0.31 $0.28 $0.28 $0.28 $0.62 $0.56 
Weighted average common shares outstanding57,04956,90457,30957,59757,56756,97757,593
Dilutive potential common shares726 681 588 449 414 691 481 
Average common shares and dilutive common shares57,775 57,585 57,897 58,046 57,981 57,668 58,074 
16


TABLE 1: LOAN PORTFOLIO MIX AND GROWTH RATES
   
% Growth From (2)
(Dollars in thousands)Jun 30, 2021Mar 31, 2021Dec 31, 2020Sep 30,
2020
Jun 30, 2020
Dec 31, 2020 (1)
Jun 30, 2020
Balance:
Mortgage loans held-for-sale, excluding early buy-out exercised loans guaranteed by U.S. Government Agencies$633,006 $890,749 $927,307 $862,924 $814,667 (64)%(22)%
Mortgage loans held-for-sale, early buy-out exercised loans guaranteed by U.S. Government Agencies351,988 369,444 344,783 96,747 18,496 1803 
Total mortgage loans held-for-sale$984,994 $1,260,193 $1,272,090 $959,671 $833,163 (46)%18 %
Core loans:
Commercial
Commercial and industrial$4,650,607 $4,630,795 $4,675,594 $4,555,920 $4,292,032 (1)%%
Asset-based lending892,109 720,772 721,666 707,365 721,035 48 24 
Municipal511,094 493,417 474,103 482,567 519,691 16 (2)
Leases1,357,036 1,290,778 1,288,374 1,215,239 1,179,233 11 15 
Commercial real estate
Residential construction55,735 72,058 89,389 101,187 131,639 (76)(58)
Commercial construction1,090,447 1,040,631 1,041,729 1,005,708 992,872 10 
Land239,067 240,635 240,684 226,254 215,537 (1)11 
Office1,098,386 1,131,472 1,136,844 1,163,790 1,124,643 (7)(2)
Industrial1,263,614 1,152,522 1,129,433 1,117,702 1,062,218 24 19 
Retail1,217,540 1,198,025 1,224,403 1,175,819 1,148,152 (1)
Multi-family1,805,118 1,739,521 1,649,801 1,599,651 1,497,834 19 21 
Mixed use and other1,908,462 1,969,915 1,981,849 2,033,031 2,027,850 (7)(6)
Home equity369,806 390,253 425,263 446,274 466,596 (26)(21)
Residential real estate
Residential real estate loans for investment1,485,952 1,376,465 1,214,744 1,143,908 1,186,768 45 25 
Residential mortgage loans, early buy-out eligible loans guaranteed by U.S. Government Agencies44,333 45,508 44,854 240,902 240,661 (2)(82)
Total core loans$17,989,306 $17,492,767 $17,338,730 $17,215,317 $16,806,761 %%
Niche loans:
Commercial
Franchise$1,060,468 $1,128,493 $1,023,027 $964,150 $963,531 %10 %
Mortgage warehouse lines of credit529,867 587,868 567,389 503,371 352,659 (13)50 
Community Advantage - homeowners association287,689 272,222 267,374 254,963 240,634 15 20 
Insurance agency lending273,999 290,880 222,519 214,411 255,049 47 
Premium Finance receivables
U.S. commercial insurance3,805,504 3,342,730 3,438,087 3,494,155 3,439,987 22 11 
Canada commercial insurance716,367 615,813 616,402 565,989 559,787 33 28 
Life insurance6,359,556 6,111,495 5,857,436 5,488,832 5,400,802 17 18 
Consumer and other9,024 35,983 32,188 55,354 48,325 (145)(81)
Total niche loans$13,042,474 $12,385,484 $12,024,422 $11,541,225 $11,260,774 17 %16 %
Commercial PPP loans:
Originated in 2020$656,502 $2,049,342 $2,715,921 $3,379,013 $3,335,368 NM(80)%
Originated in 20211,222,905 1,243,640 — — — 100 100 
Total commercial PPP loans$1,879,407 $3,292,982 $2,715,921 $3,379,013 $3,335,368 (62)%(44)%
Total loans, net of unearned income$32,911,187 $33,171,233 $32,079,073 $32,135,555 $31,402,903 %5��%
(1)Annualized.
(2)NM - Not meaningful.
17


TABLE 2: DEPOSIT PORTFOLIO MIX AND GROWTH RATES

    % Growth From
(Dollars in thousands)Jun 30, 2021Mar 31, 2021Dec 31, 2020Sep 30, 2020Jun 30, 2020
Dec 31, 2020 (1)
Jun 30, 2020
Balance:
Non-interest-bearing$12,796,110$12,297,337$11,748,455$10,409,747$10,204,79118 %25 %
NOW and interest-bearing demand deposits3,625,5383,562,3123,349,0213,294,0713,440,34817 
Wealth management deposits (2)
4,399,3034,274,5274,138,7124,235,5834,433,02013 (1)
Money market9,843,3909,236,4349,348,8069,423,6539,288,97611 
Savings3,776,4003,690,8923,531,0293,415,0733,447,35214 10 
Time certificates of deposit4,363,8754,811,1504,976,6285,066,2954,837,387(25)(10)
Total deposits$38,804,616$37,872,652$37,092,651$35,844,422$35,651,874%%
Mix:
Non-interest-bearing33 %32 %32 %29 %29 %
NOW and interest-bearing demand deposits9 10 
Wealth management deposits (2)
11 11 11 12 12 
Money market25 25 25 26 25 
Savings10 10 10 10 10 
Time certificates of deposit12 13 13 14 14 
Total deposits100 %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"), trust and asset management customers of the Company and brokerage customers from unaffiliated companies which have been placed into deposit accounts.

TABLE 3: TIME CERTIFICATES OF DEPOSIT MATURITY/RE-PRICING ANALYSIS
As of June 30, 2021
(Dollars in thousands)Total Time
Certificates of
Deposit
Weighted-Average
Rate of Maturing
Time Certificates
    of Deposit (1)
1-3 months$1,049,387 1.40 %
4-6 months844,945 1.08 
7-9 months726,341 0.60 
10-12 months566,664 0.43 
13-18 months601,524 0.59 
19-24 months274,328 0.62 
24+ months300,686 0.63 
Total$4,363,875 0.87 %
(1)Weighted-average rate excludes the impact of purchase accounting fair value adjustments.

18


TABLE 4: QUARTERLY AVERAGE BALANCES

 Average Balance for three months ended,
 Jun 30,Mar 31,Dec 31,Sep 30,Jun 30,
(In thousands)20212021202020202020
Interest-bearing deposits with banks and cash equivalents (1)
$3,844,355 $4,230,886 $4,381,040 $3,411,164 $3,240,167 
Investment securities (2)
4,771,403 3,944,676 3,534,594 3,789,422 4,309,471 
FHLB and FRB stock136,324 135,758 135,569 135,567 135,360 
Liquidity management assets (3)
8,752,082 8,311,320 8,051,203 7,336,153 7,684,998 
Other earning assets (3)(4)
23,354 20,370 18,716 16,656 16,917 
Mortgage loans held-for-sale991,011 1,151,848 893,395 822,908 705,702 
Loans, net of unearned income (3)(5)
33,085,174 32,442,927 31,783,279 31,634,608 30,336,626 
Total earning assets (3)
42,851,621 41,926,465 40,746,593 39,810,325 38,744,243 
Allowance for loan and investment security losses(285,686)(327,080)(336,139)(321,732)(222,485)
Cash and due from banks470,566 366,413 344,536 345,438 352,423 
Other assets2,910,250 3,022,935 3,055,015 3,128,813 3,168,548 
Total assets$45,946,751 $44,988,733 $43,810,005 $42,962,844 $42,042,729 
NOW and interest-bearing demand deposits$3,626,424 $3,493,451 $3,320,527 $3,435,089 $3,323,124 
Wealth management deposits4,369,998 4,156,398 4,066,948 4,239,300 4,380,996 
Money market accounts9,547,167 9,335,920 9,435,344 9,332,668 8,727,966 
Savings accounts3,728,271 3,587,566 3,413,388 3,419,586 3,394,480 
Time deposits4,632,796 4,875,392 5,043,558 4,900,839 5,104,701 
Interest-bearing deposits25,904,656 25,448,727 25,279,765 25,327,482 24,931,267 
Federal Home Loan Bank advances1,235,142 1,228,433 1,228,425 1,228,421 1,214,375 
Other borrowings525,924 518,188 510,725 512,787 493,350 
Subordinated notes436,644 436,532 436,433 436,323 436,226 
Junior subordinated debentures253,566 253,566 253,566 253,566 253,566 
Total interest-bearing liabilities28,355,932 27,885,446 27,708,914 27,758,579 27,328,784 
Non-interest-bearing deposits12,246,274 11,811,194 10,874,912 9,988,769 9,607,528 
Other liabilities1,087,767 1,127,203 1,175,893 1,180,594 1,197,571 
Equity4,256,778 4,164,890 4,050,286 4,034,902 3,908,846 
Total liabilities and shareholders’ equity$45,946,751 $44,988,733 $43,810,005 $42,962,844 $42,042,729 
Net free funds/contribution (6)
$14,495,689 $14,041,019 $13,037,679 $12,051,746 $11,415,459 
(1)Includes interest-bearing deposits from banks, federal funds sold and securities purchased under resale agreements.
(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 "Supplemental Non-GAAP Financial Measures/Ratios" at Table 18 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.

19


TABLE 5: QUARTERLY NET INTEREST INCOME

 Net Interest Income for three months ended,
 Jun 30,Mar 31,Dec 31,Sep 30,Jun 30,
(In thousands)20212021202020202020
Interest income:
Interest-bearing deposits with banks and cash equivalents$1,153 $1,199 $1,294 $1,181 $1,326 
Investment securities24,117 19,764 18,773 22,365 27,643 
FHLB and FRB stock1,769 1,745 1,775 1,774 1,765 
Liquidity management assets (1)
27,039 22,708 21,842 25,320 30,734 
Other earning assets (1)
150 125 130 113 113 
Mortgage loans held-for-sale8,183 9,036 6,357 5,791 4,764 
Loans, net of unearned income (1)
285,116 274,484 280,509 280,960 295,322 
Total interest income$320,488 $306,353 $308,838 $312,184 $330,933 
Interest expense:
NOW and interest-bearing demand deposits$736 $901 $1,074 $1,342 $1,561 
Wealth management deposits7,686 7,351 7,436 7,662 7,244 
Money market accounts2,795 2,865 3,740 7,245 13,140 
Savings accounts402 430 773 2,104 3,840 
Time deposits12,679 16,397 19,579 20,731 24,272 
Interest-bearing deposits24,298 27,944 32,602 39,084 50,057 
Federal Home Loan Bank advances4,887 4,840 4,952 4,947 4,934 
Other borrowings2,568 2,609 2,779 3,012 3,436 
Subordinated notes5,512 5,477 5,509 5,474 5,506 
Junior subordinated debentures2,724 2,704 2,742 2,703 2,752 
Total interest expense$39,989 $43,574 $48,584 $55,220 $66,685 
Less: Fully taxable-equivalent adjustment(909)(884)(857)(1,028)(1,117)
Net interest income (GAAP) (2)
279,590 261,895 259,397 255,936 263,131 
Fully taxable-equivalent adjustment909 884 857 1,028 1,117 
Net interest income, fully taxable-equivalent (non-GAAP) (2)
$280,499 $262,779 $260,254 $256,964 $264,248 
(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 "Supplemental Non-GAAP Financial Measures/Ratios" at Table 18 for additional information on this performance measure/ratio.

20


TABLE 6: QUARTERLY NET INTEREST MARGIN

 Net Interest Margin for three months ended,
Jun 30, 2021Mar 31, 2021Dec 31,
2020
Sep 30, 2020Jun 30,
2020
Yield earned on:
Interest-bearing deposits with banks and cash equivalents0.12 %0.11 %0.12 %0.14 %0.16 %
Investment securities2.03 2.03 2.11 2.35 2.58 
FHLB and FRB stock5.20 5.21 5.21 5.21 5.24 
Liquidity management assets1.24 1.11 1.08 1.37 1.61 
Other earning assets2.59 2.50 2.79 2.71 2.71 
Mortgage loans held-for-sale3.31 3.18 2.83 2.80 2.72 
Loans, net of unearned income3.46 3.43 3.51 3.53 3.92 
Total earning assets3.00 %2.96 %3.02 %3.12 %3.44 %
Rate paid on:
NOW and interest-bearing demand deposits0.08 %0.10 %0.13 %0.16 %0.19 %
Wealth management deposits0.71 0.72 0.73 0.72 0.67 
Money market accounts0.12 0.12 0.16 0.31 0.61 
Savings accounts0.04 0.05 0.09 0.24 0.45 
Time deposits1.10 1.36 1.54 1.68 1.91 
Interest-bearing deposits0.38 0.45 0.51 0.61 0.81 
Federal Home Loan Bank advances1.59 1.60 1.60 1.60 1.63 
Other borrowings1.96 2.04 2.16 2.34 2.80 
Subordinated notes5.05 5.02 5.05 5.02 5.05 
Junior subordinated debentures4.25 4.27 4.23 4.17 4.29 
Total interest-bearing liabilities0.56 %0.63 %0.70 %0.79 %0.98 %
Interest rate spread (1)(2)
2.44 %2.33 %2.32 %2.33 %2.46 %
Less: Fully taxable-equivalent adjustment(0.01)(0.01)(0.01)(0.01)(0.01)
Net free funds/contribution (3)
0.19 0.21 0.22 0.24 0.28 
Net interest margin (GAAP) (2)
2.62 %2.53 %2.53 %2.56 %2.73 %
Fully taxable-equivalent adjustment0.01 0.01 0.01 0.01 0.01 
Net interest margin, fully taxable-equivalent (non-GAAP) (2)
2.63 %2.54 %2.54 %2.57 %2.74 %
(1)Interest rate spread is the difference between the yield earned on earning assets and the rate paid on interest-bearing liabilities.
(2)See "Supplemental Non-GAAP Financial Measures/Ratios" at Table 18 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.




21



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

 Average Balance
for six months ended,
Interest
for six months ended,
Yield/Rate
for six months ended,
(Dollars in thousands)Jun 30, 2021Jun 30,
2020
Jun 30, 2021Jun 30, 2020Jun 30, 2021Jun 30, 2020
Interest-bearing deposits with banks and cash equivalents (1)
$4,036,553 $2,329,488 $2,352 $6,180 0.12 %0.53 %
Investment securities (2)
4,360,323 4,545,090 43,881 60,661 2.03 2.68 
FHLB and FRB stock136,043 125,094 3,514 3,342 5.21 5.37 
Liquidity management assets (3)(4)
$8,532,919 $6,999,672 $49,747 $70,183 1.18 %2.02 %
Other earning assets (3)(4)(5)
21,870 18,041 275 280 2.55 3.13 
Mortgage loans held-for-sale1,070,985 554,482 17,219 7,929 3.24 2.88 
Loans, net of unearned income (3)(4)(6)
32,765,825 28,636,678 559,600 598,021 3.44 4.20 
Total earning assets (4)
$42,391,599 $36,208,873 $626,841 $676,413 2.98 %3.76 %
Allowance for loan and investment security losses(306,268)(199,388)
Cash and due from banks418,777 337,202 
Other assets2,966,281 2,987,422 
Total assets$45,470,389 $39,334,109 
NOW and interest-bearing demand deposits$3,560,305 $3,218,429 $1,637 $5,227 0.09 %0.33 %
Wealth management deposits4,263,788 3,609,857 15,037 14,179 0.71 0.79 
Money market accounts9,442,127 8,359,370 5,660 35,503 0.12 0.85 
Savings accounts3,658,307 3,292,158 832 9,630 0.05 0.59 
Time deposits4,753,424 5,315,554 29,076 52,953 1.23 2.00 
Interest-bearing deposits$25,677,951 $23,795,368 $52,242 $117,492 0.41 %0.99 %
Federal Home Loan Bank advances1,231,806 1,082,994 9,727 8,294 1.59 1.54 
Other borrowings522,078 481,463 5,177 6,982 2.00 2.92 
Subordinated notes436,588 436,173 10,989 10,978 5.03 5.03 
Junior subordinated debentures253,566 253,566 5,428 5,563 4.26 4.34 
Total interest-bearing liabilities$28,121,989 $26,049,564 $83,563 $149,309 0.60 %1.15 %
Non-interest-bearing deposits12,029,936 8,421,353 
Other liabilities1,107,376 1,053,684 
Equity4,211,088 3,809,508 
Total liabilities and shareholders’ equity$45,470,389 $39,334,109 
Interest rate spread (4)(7)
2.38 %2.61 %
Less: Fully taxable-equivalent adjustment(1,793)(2,530)(0.01)(0.02)
Net free funds/contribution (8)
$14,269,610 $10,159,309 0.21 0.32 
Net interest income/ margin (GAAP) (4)
$541,485 $524,574 2.58 %2.91 %
Fully taxable-equivalent adjustment1,793 2,5300.01 0.02 
Net interest income/ margin, fully taxable-equivalent (non-GAAP) (4)
$543,278 $527,104 2.59 %2.93 %
(1)Includes interest-bearing deposits from banks, federal funds sold and securities purchased under resale agreements.
(2)Investment securities includes investment securities classified as available-for-sale and held-to-maturity, and equity securities with readily determinable fair values. Equity securities without readily determinable fair values are included within other assets.
(3)Interest income on tax-advantaged loans, trading securities and investment securities reflects a taxable-equivalent adjustment based on a marginal federal corporate tax rate in effect as of the applicable period.
(4)See “Supplemental Non-GAAP Financial Measures/Ratios” at Table 18 for additional information on this performance ratio.
(5)Other earning assets include brokerage customer receivables and trading account securities.
(6)Loans, net of unearned income, include non-accrual loans.
(7)Interest rate spread is the difference between the yield earned on earning assets and the rate paid on interest-bearing liabilities.
(8)Net free funds are the difference between total average earning assets and total average interest-bearing liabilities. The estimated contribution to net interest margin from net free funds is calculated using the rate paid for total interest-bearing liabilities.
22


TABLE 8: INTEREST RATE SENSITIVITY

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

The following interest rate scenarios display the percentage change in net interest income over a one-year time horizon assuming increases of 100 and 200 basis points and a decrease of 100 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
Jun 30, 202124.6 %11.7 %(6.9)%
Mar 31, 202122.0 10.2 (7.2)
Dec 31, 202025.0 11.6 (7.9)
Sep 30, 202023.4 10.9 (8.1)
Jun 30, 202025.9 12.6 (8.3)

Ramp Scenario+200
Basis
Points
+100
Basis
Points
-100
Basis
Points
Jun 30, 202111.4 %5.8 %(3.3)%
Mar 31, 202110.7 5.4 (3.6)
Dec 31, 202011.4 5.7 (3.3)
Sep 30, 202010.7 5.2 (3.5)
Jun 30, 202013.0 6.7 (3.2)


23


TABLE 9: MATURITIES AND SENSITIVITIES TO CHANGES IN INTEREST RATES

Loans repricing or maturity period
As of June 30, 2021One year or lessFrom one to five yearsOver five years
(In thousands)Total
Commercial
Fixed rate$1,018,304 $1,378,744 $796,227 $3,193,275 
Fixed Rate - PPP 1,879,407  1,879,407 
Variable rate6,365,838 3,694 62 6,369,594 
Total commercial$7,384,142 $3,261,845 $796,289 $11,442,276 
Commercial real estate
Fixed rate509,777 2,127,633 437,944 3,075,354 
Variable rate5,578,790 24,225  5,603,015 
Total commercial real estate$6,088,567 $2,151,858 $437,944 $8,678,369 
Home equity
Fixed rate14,613 7,095 47 21,755 
Variable rate348,051   348,051 
Total home equity$362,664 $7,095 $47 $369,806 
Residential real estate
Fixed rate20,305 10,381 777,239 807,925 
Variable rate60,029 273,717 388,614 722,360 
Total residential real estate$80,334 $284,098 $1,165,853 $1,530,285 
Premium finance receivables - commercial
Fixed rate4,398,271 123,600  4,521,871 
Variable rate    
Total premium finance receivables - commercial$4,398,271 $123,600 $ $4,521,871 
Premium finance receivables - life insurance
Fixed rate10,030 374,736 20,394 405,160 
Variable rate5,954,396   5,954,396 
Total premium finance receivables - life insurance$5,964,426 $374,736 $20,394 $6,359,556 
Consumer and other
Fixed rate2,269 1,748 388 4,405 
Variable rate4,619   4,619 
Total consumer and other$6,888 $1,748 $388 $9,024 
Total per category
Fixed rate5,973,569 4,023,937 2,032,239 12,029,745 
Fixed rate - PPP 1,879,407  1,879,407 
Variable rate18,311,723 301,636 388,676 19,002,035 
Total loans, net of unearned income$24,285,292 $6,204,980 $2,420,915 $32,911,187 
Variable Rate Loan Pricing by Index:
Prime$2,573,945 
One- month LIBOR9,384,417 
Three- month LIBOR374,067 
Twelve- month LIBOR6,359,426 
Other310,180 
Total variable rate$19,002,035 

24




liborq2earningsreleasegraph.jpgSource: Bloomberg

As noted in the table on the previous page, the majority of the Company’s portfolio is tied to LIBOR 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 $9.4 billion of variable rate loans tied to one-month LIBOR and $6.4 billion of variable rate loans tied to twelve-month LIBOR. The above chart shows:

Basis Point (bp) Change in
Prime1-month
LIBOR
12-month
LIBOR
Second Quarter 20210bps-1bps-3bps
First Quarter 20210-3-6
Fourth Quarter 20200-1-2
Third Quarter 20200-1-19
Second Quarter 20200-83-45


25



TABLE 10: ALLOWANCE FOR CREDIT LOSSES

Three Months EndedSix Months Ended
Jun 30,Mar 31,Dec 31,Sep 30,Jun 30,Jun 30,Jun 30,
(Dollars in thousands)2021202120202020202020212020
Allowance for credit losses at beginning of period$321,308 $379,969 $388,971 $373,174 $253,482 $379,969 $158,461 
Cumulative effect adjustment from the adoption of ASU 2016-13 — — — —  47,418 
Provision for credit losses(15,299)(45,347)1,180 25,026 135,053 (60,646)188,014 
Other adjustments34 31 155 55 42 65 (31)
Charge-offs:
Commercial3,237 11,781 5,184 5,270 5,686 15,018 7,839 
Commercial real estate1,412 980 6,637 1,529 7,224 2,392 7,794 
Home equity142 — 683 138 239 142 1,240 
Residential real estate3 114 83 293 5 694 
Premium finance receivables2,077 3,239 4,214 4,640 3,434 5,316 6,618 
Consumer and other104 114 198 103 99 218 227 
Total charge-offs6,975 16,116 17,030 11,763 16,975 23,091 24,412 
Recoveries:
Commercial902 452 4,168 428 112 1,354 496 
Commercial real estate514 200 904 175 493 714 756 
Home equity328 101 77 111 46 429 340 
Residential real estate36 204 69 25 30 240 90 
Premium finance receivables3,239 1,782 1,445 1,720 833 5,021 1,943 
Consumer and other34 32 30 20 58 66 99 
Total recoveries5,053 2,771 6,693 2,479 1,572 7,824 3,724 
Net charge-offs(1,922)(13,345)(10,337)(9,284)(15,403)(15,267)(20,688)
Allowance for credit losses at period end$304,121 $321,308 $379,969 $388,971 $373,174 $304,121 $373,174 
Annualized net charge-offs (recoveries) by category as a percentage of its own respective category’s average:
Commercial0.08 %0.37 %0.03 %0.16 %0.20 %0.22 %0.15 %
Commercial real estate0.04 0.04 0.27 0.06 0.33 0.04 0.17 
Home equity(0.20)(0.10)0.55 0.02 0.16 (0.15)0.37 
Residential real estate(0.01)(0.06)0.02 0.02 0.09 (0.03)0.10 
Premium finance receivables(0.04)0.06 0.11 0.12 0.12 0.01 0.11 
Consumer and other0.69 0.57 0.78 0.49 0.25 0.62 0.39 
Total loans, net of unearned income0.02 %0.17 %0.13 %0.12 %0.20 %0.09 %0.15 %
Loans at period end$32,911,187 $33,171,233 $32,079,073 $32,135,555 $31,402,903 
Allowance for loan losses as a percentage of loans at period end0.79 %0.84 %1.00 %1.01 %1.00 %
Allowance for loan and unfunded lending-related commitment losses as a percentage of loans at period end0.92 0.97 1.18 1.21 1.19 
Allowance for loan and unfunded lending-related commitment losses as a percentage of loans at period end, excluding PPP loans0.98 1.08 1.29 1.35 1.33 


26


TABLE 11: ALLOWANCE AND PROVISION FOR CREDIT LOSSES BY COMPONENT

Three Months EndedSix Months Ended
Jun 30,Mar 31,Dec 31,Sep 30,Jun 30,Jun 30,Jun 30,
(In thousands)2021202120202020202020212020
Provision for loan losses$(14,731)$(28,351)$3,597 $21,678 $112,822 $(43,082)$163,218 
Provision for unfunded lending-related commitments losses(558)(17,035)(2,413)3,350 22,236 (17,593)24,805 
Provision for held-to-maturity securities losses(10)39 (4)(2)(5)29 (9)
Provision for credit losses$(15,299)$(45,347)$1,180 $25,026 $135,053 $(60,646)$188,014 
Allowance for loan losses$261,089 $277,709 $319,374 $325,959 $313,510 
Allowance for unfunded lending-related commitments losses42,942 43,500 60,536 62,949 59,599 
Allowance for loan losses and unfunded lending-related commitments losses304,031 321,209 379,910 388,908 373,109 
Allowance for held-to-maturity securities losses90 99 59 63 65 
Allowance for credit losses$304,121 $321,308 $379,969 $388,971 $373,174 
    


27


TABLE 12: ALLOWANCE BY LOAN PORTFOLIO

The table below summarizes the calculation of allowance for loan losses and allowance for unfunded lending-related commitments losses for the Company’s loan portfolios as well as core and niche portfolios, as of June 30, 2021, March 31, 2021, and December 31, 2020.

 As of Jun 30, 2021As of Mar 31, 2021As of Dec 31, 2020
(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, excluding PPP loans$9,562,869 $98,505 1.03 %$9,415,225 $95,637 1.02 %$9,240,046 $94,210 1.02 %
Commercial PPP loans1,879,407 2 0.00 3,292,982 0.00 2,715,921 0.00 
Commercial real estate:
Construction and development1,385,249 38,550 2.78 1,353,324 45,327 3.35 1,371,802 78,833 5.75 
Non-construction7,293,120 119,972 1.65 7,191,455 136,465 1.90 7,122,330 164,770 2.31 
Home equity369,806 11,207 3.03 390,253 11,382 2.92 425,263 11,437 2.69 
Residential real estate1,530,285 15,684 1.02 1,421,973 14,242 1.00 1,259,598 12,459 0.99 
Premium finance receivables
Commercial insurance loans4,521,871 19,346 0.43 3,958,543 16,945 0.43 4,054,489 17,267 0.43 
Life insurance loans6,359,556 553 0.01 6,111,495 532 0.01 5,857,436 510 0.01 
Consumer and other9,024 212 2.35 35,983 676 1.88 32,188 422 1.31 
Total loans, net of unearned income$32,911,187 $304,031 0.92 %$33,171,233 $321,209 0.97 %$32,079,073 $379,910 1.18 %
Total loans, net of unearned income, excluding PPP loans$31,031,780 $304,029 0.98 %$29,878,251 $321,206 1.08 %$29,363,152 $379,908 1.29 %
Total core loans (1)
$17,989,306 $267,999 1.49 %$17,492,767 $283,505 1.62 %$17,338,730 $347,111 2.00 %
Total niche loans (1)
13,042,474 36,030 0.28 12,385,484 37,701 0.30 12,024,422 32,797 0.27 
Total PPP loans1,879,407 2 0.00 3,292,982 0.00 2,715,921 0.00 
(1)See Table 1 for additional detail on core and niche loans.


28


TABLE 13: LOAN PORTFOLIO AGING

(Dollars in thousands)Jun 30, 2021Mar 31, 2021Dec 31, 2020Sep 30, 2020Jun 30, 2020
Loan Balances:
Commercial
Nonaccrual$23,232 $22,459 $21,743 $42,036 $42,882 
90+ days and still accruing1,244 — 307 — 1,374 
60-89 days past due5,204 13,292 6,900 2,168 8,952 
30-59 days past due18,478 35,541 44,381 48,271 23,720 
Current11,394,118 12,636,915 11,882,636 12,184,524 11,782,304 
Total commercial$11,442,276 $12,708,207 $11,955,967 $12,276,999 $11,859,232 
Commercial real estate
Nonaccrual$26,035 $34,380 $46,107 $68,815 $64,557 
90+ days and still accruing — — — — 
60-89 days past due4,382 8,156 5,178 8,299 26,480 
30-59 days past due19,698 70,168 32,116 53,462 75,528 
Current8,628,254 8,432,075 8,410,731 8,292,566 8,034,180 
Total commercial real estate$8,678,369 $8,544,779 $8,494,132 8,423,142 $8,200,745 
Home equity
Nonaccrual$3,478 $5,536 $6,529 $6,329 $7,261 
90+ days and still accruing — — — — 
60-89 days past due301 492 47 70 — 
30-59 days past due777 780 637 1,148 1,296 
Current365,250 383,445 418,050 438,727 458,039 
Total home equity$369,806 $390,253 $425,263 $446,274 $466,596 
Residential real estate
Nonaccrual$23,050 $21,553 $26,071 $22,069 $19,529 
90+ days and still accruing — — — — 
60-89 days past due1,584 944 1,635 814 1,506 
30-59 days past due2,139 13,768 12,584 2,443 4,400 
Current1,503,512 1,385,708 1,219,308 1,359,484 1,401,994 
Total residential real estate$1,530,285 $1,421,973 $1,259,598 $1,384,810 $1,427,429 
Premium finance receivables
Nonaccrual$6,418 $9,690 $13,264 $21,080 $16,460 
90+ days and still accruing3,570 4,783 12,792 12,177 35,638 
60-89 days past due7,759 5,113 27,801 38,286 42,353 
30-59 days past due32,758 31,373 49,274 80,732 61,160 
Current10,830,922 10,019,079 9,808,794 9,396,701 9,244,965 
Total premium finance receivables$10,881,427 $10,070,038 $9,911,925 $9,548,976 $9,400,576 
Consumer and other
Nonaccrual$485 $497 $436 $422 $427 
90+ days and still accruing178 161 264 175 156 
60-89 days past due22 24 273 
30-59 days past due75 74 136 493 281 
Current8,264 35,243 31,328 53,991 47,457 
Total consumer and other$9,024 $35,983 $32,188 $55,354 $48,325 
Total loans, net of unearned income
Nonaccrual$82,698 $94,115 $114,150 $160,751 $151,116 
90+ days and still accruing4,992 4,944 13,363 12,352 37,168 
60-89 days past due19,252 28,005 41,585 49,910 79,295 
30-59 days past due73,925 151,704 139,128 186,549 166,385 
Current32,730,320 32,892,465 31,770,847 31,725,993 30,968,939 
Total loans, net of unearned income$32,911,187 $33,171,233 $32,079,073 $32,135,555 $31,402,903 

29


TABLE 14: NON-PERFORMING ASSETS AND TROUBLED DEBT RESTRUCTURINGS ("TDRs")

Jun 30,Mar 31,Dec 31,Sep 30,Jun 30,
(Dollars in thousands)20212021202020202020
Loans past due greater than 90 days and still accruing (1):
Commercial$1,244 $— $307 $— $1,374 
Commercial real estate — — — — 
Home equity — — — — 
Residential real estate — — — — 
Premium finance receivables3,570 4,783 12,792 12,177 35,638 
Consumer and other178 161 264 175 156 
Total loans past due greater than 90 days and still accruing4,992 4,944 13,363 12,352 37,168 
Non-accrual loans:
Commercial23,232 22,459 21,743 42,036 42,882 
Commercial real estate26,035 34,380 46,107 68,815 64,557 
Home equity3,478 5,536 6,529 6,329 7,261 
Residential real estate23,050 21,553 26,071 22,069 19,529 
Premium finance receivables6,418 9,690 13,264 21,080 16,460 
Consumer and other485 497 436 422 427 
Total non-accrual loans82,698 94,115 114,150 160,751 151,116 
Total non-performing loans:
Commercial24,476 22,459 22,050 42,036 44,256 
Commercial real estate26,035 34,380 46,107 68,815 64,557 
Home equity3,478 5,536 6,529 6,329 7,261 
Residential real estate23,050 21,553 26,071 22,069 19,529 
Premium finance receivables9,988 14,473 26,056 33,257 52,098 
Consumer and other663 658 700 597 583 
Total non-performing loans$87,690 $99,059 $127,513 $173,103 $188,284 
Other real estate owned10,510 8,679 9,711 2,891 2,409 
Other real estate owned - from acquisitions5,062 7,134 6,847 6,326 7,788 
Other repossessed assets — — — — 
Total non-performing assets$103,262 $114,872 $144,071 $182,320 $198,481 
Accruing TDRs not included within non-performing assets$44,019 $46,151 $47,023 $46,410 $48,609 
Total non-performing loans by category as a percent of its own respective category’s period-end balance:
Commercial0.21 %0.18 %0.18 %0.34 %0.37 %
Commercial real estate0.30 0.40 0.54 0.82 0.79 
Home equity0.94 1.42 1.54 1.42 1.56 
Residential real estate1.51 1.52 2.07 1.59 1.37 
Premium finance receivables0.09 0.14 0.26 0.35 0.55 
Consumer and other7.35 1.83 2.17 1.08 1.21 
Total loans, net of unearned income0.27 %0.30 %0.40 %0.54 %0.60 %
Total non-performing assets as a percentage of total assets0.22 %0.25 %0.32 %0.42 %0.46 %
Allowance for credit losses as a percentage of non-accrual loans367.64 %341.29 %332.82 %241.93 %246.90 %
(1)As of June 30, 2021, $320,000 of TDRs were past due greater than 90 days and still accruing interest compared to none in March 31, 2021, December 31, 2020, September 30, 2020, and June 30, 2020.

30



Non-performing Loans Rollforward
 Three Months EndedSix Months Ended
 Jun 30,Mar 31,Dec 31,Sep 30,Jun 30,Jun 30,Jun 30,
(In thousands)2021202120202020202020212020
Balance at beginning of period$99,059 $127,513 $173,103 $188,284 $179,360 $127,513 $117,588 
Additions from becoming non-performing in the respective period12,762 9,894 13,224 19,771 20,803 22,656 52,998 
Additions from the adoption of ASU 2016-13 — — — —  37,285 
Return to performing status (654)(1,000)(6,202)(2,566)(654)(3,052)
Payments received(12,312)(22,731)(30,146)(3,733)(11,201)(35,043)(19,150)
Transfer to OREO and other repossessed assets(3,660)(1,372)(12,662)(598)— (5,032)(1,297)
Charge-offs, net(4,684)(2,952)(7,817)(6,583)(12,884)(7,636)(15,435)
Net change for niche loans (1)
(3,475)(10,639)(7,189)(17,836)14,772 (14,114)19,347 
Balance at end of period$87,690 $99,059 $127,513 $173,103 $188,284 $87,690 $188,284 
(1)This includes activity for premium finance receivables and indirect consumer loans.


TDRs
Jun 30,Mar 31,Dec 31,Sep 30,Jun 30,
(In thousands)20212021202020202020
Accruing TDRs:
Commercial$6,911 $7,536 $7,699 $7,863 $5,338 
Commercial real estate9,659 9,478 10,549 10,846 19,106 
Residential real estate and other27,449 29,137 28,775 27,701 24,165 
Total accrual$44,019 $46,151 $47,023 $46,410 $48,609 
Non-accrual TDRs: (1)
Commercial$4,104 $5,583 $10,491 $13,132 $20,788 
Commercial real estate3,434 1,309 6,177 13,601 8,545 
Residential real estate and other4,190 3,540 4,501 5,392 5,606 
Total non-accrual$11,728 $10,432 $21,169 $32,125 $34,939 
Total TDRs:
Commercial$11,015 $13,119 $18,190 $20,995 $26,126 
Commercial real estate13,093 10,787 16,726 24,447 27,651 
Residential real estate and other31,639 32,677 33,276 33,093 29,771 
Total TDRs$55,747 $56,583 $68,192 $78,535 $83,548 
(1)Included in total non-performing loans.

31


Other Real Estate Owned
 Three Months Ended
 Jun 30,Mar 31,Dec 31,Sep 30,Jun 30,
(In thousands)20212021202020202020
Balance at beginning of period$15,813 $16,558 $9,217 $10,197 $11,026 
Disposals/resolved(3,152)(2,162)(3,839)(1,532)(612)
Transfers in at fair value, less costs to sell3,660 1,587 11,508 777 — 
Additions from acquisition — — — — 
Fair value adjustments(749)(170)(328)(225)(217)
Balance at end of period$15,572 $15,813 $16,558 $9,217 $10,197 
 Period End
 Jun 30,Mar 31,Dec 31,Sep 30,Jun 30,
Balance by Property Type:20212021202020202020
Residential real estate$1,952 $2,713 $2,324 $1,839 $1,382 
Residential real estate development1,030 1,287 1,691 — — 
Commercial real estate12,590 11,813 12,543 7,378 8,815 
Total$15,572 $15,813 $16,558 $9,217 $10,197 
32


TABLE 15: NON-INTEREST INCOME

Three Months EndedQ2 2021 compared to
Q1 2021
Q2 2021 compared to
Q2 2020
Jun 30,Mar 31,Dec 31,Sep 30,Jun 30,
(Dollars in thousands)20212021202020202020$ Change% Change$ Change% Change
Brokerage$5,148 $5,040 $4,740 $4,563 $4,147 $108 %$1,001 24 %
Trust and asset management25,542 24,269 22,062 20,394 18,489 1,273 7,053 38 
Total wealth management30,690 29,309 26,802 24,957 22,636 1,381 8,054 36 
Mortgage banking50,584 113,494 86,819 108,544 102,324 (62,910)(55)(51,740)(51)
Service charges on deposit accounts13,249 12,036 11,841 11,497 10,420 1,213 10 2,829 27 
Gains on investment securities, net1,285 1,154 1,214 411 808 131 11 477 59 
Fees from covered call options1,388 — — — — 1,388 NM1,388 NM
Trading (losses) gains, net(438)419 (102)183 (634)(857)NM196 (31)
Operating lease income, net12,240 14,440 12,118 11,717 11,785 (2,200)(15)455 
Other:
Interest rate swap fees2,820 2,488 4,930 4,029 5,693 332 13 (2,873)(50)
BOLI1,342 1,124 2,846 1,218 1,950 218 19 (608)(31)
Administrative services1,228 1,256 1,263 1,077 933 (28)(2)295 32 
Foreign currency remeasurement (losses) gains(782)99 (208)(54)(208)(881)NM(574)NM
Early pay-offs of capital leases195 (52)118 165 275 247 NM(80)(29)
Miscellaneous15,572 10,739 10,720 6,849 6,011 4,833 45 9,561 NM
Total Other20,375 15,654 19,669 13,284 14,654 4,721 30 5,721 39 
Total Non-Interest Income$129,373 $186,506 $158,361 $170,593 $161,993 $(57,133)(31)%$(32,620)(20)%
NM - Not meaningful.

Six Months Ended
Jun 30,Jun 30,$%
(Dollars in thousands)20212020ChangeChange
Brokerage$10,188 $9,428 $760 %
Trust and asset management49,811 39,149 10,662 27 
Total wealth management59,999 48,577 11,422 24 
Mortgage banking164,078 150,650 13,428 
Service charges on deposit accounts25,285 21,685 3,600 17 
Gains (losses) on investment securities, net2,439 (3,551)5,990 NM
Fees from covered call options1,388 2,292 (904)(39)
Trading losses, net(19)(1,085)1,066 (98)
Operating lease income, net26,680 23,769 2,911 12 
Other:
Interest rate swap fees5,308 11,759 (6,451)(55)
BOLI2,466 666 1,800 NM
Administrative services2,484 2,045 439 21 
Foreign currency remeasurement loss(683)(359)(324)90 
Early pay-offs of leases143 349 (206)(59)
Miscellaneous26,311 18,438 7,873 43 
Total Other36,029 32,898 3,131 10 
Total Non-Interest Income$315,879 $275,235 $40,644 15 %
NM - Not meaningful.
33


TABLE 16: MORTGAGE BANKING

Three Months EndedSix Months Ended
(Dollars in thousands)Jun 30,
2021
Mar 31,
2021
Dec 31,
2020
Sep 30,
2020
Jun 30,
2020
Jun 30,
2021
Jun 30,
2020
Originations:
Retail originations$1,328,721 $1,641,664 $1,757,093 $1,590,699 $1,588,932 $2,970,385 $2,362,076 
Veterans First originations395,290 580,303 594,151 635,876 621,878 975,593 1,064,835 
Total originations for sale (A)$1,724,011 $2,221,967 $2,351,244 $2,226,575 $2,210,810 $3,945,978 $3,426,911 
Originations for investment249,749 321,858 192,107 73,711 56,954 571,607 130,681 
Total originations$1,973,760 $2,543,825 $2,543,351 $2,300,286 $2,267,764 $4,517,585 $3,557,592 
Retail originations as percentage of originations for sale77 %74 %75 %71 %72 %75 %69 %
Veterans First originations as a percentage of originations for sale23 26 25 29 28 25 31 
Purchases as a percentage of originations for sale53 %27 %35 %41 %30 %38 %32 %
Refinances as a percentage of originations for sale47 73 65 59 70 62 68 
Production Margin:
Production revenue (B) (1)
$37,531 $71,282 $70,886 $94,148 $93,433 $108,813 $142,760 
Production margin (B / A)2.18 %3.21 %3.01 %4.23 %4.23 %2.76 %4.17 %
Mortgage Servicing:
Loans serviced for others (C)$12,307,337$11,530,676$10,833,135$10,139,878$9,188,285
MSRs, at fair value (D)127,604124,31692,08186,90777,203
Percentage of MSRs to loans serviced for others (D / C)1.04 %1.08 %0.85 %0.86 %0.84 %
Servicing income$9,830 $9,636 $9,829 $8,118 $6,908 $19,466 $13,939 
Components of MSR:
MSR - current period capitalization$17,512 $24,616 $20,343 $20,936��$20,351 $42,128 $29,798 
MSR - collection of expected cash flows - paydowns(991)(728)(688)(590)(419)(1,719)(966)
MSR - collection of expected cash flows - payoffs(7,549)(9,440)(8,335)(7,272)(8,252)(16,989)(14,728)
Valuation:
MSR - changes in fair value model assumptions(5,540)18,045 (5,223)(3,002)(7,982)12,505 (22,539)
Gain on derivative contract held as an economic hedge, net — — — 589  4,749 
MSR valuation adjustment, net of gain on derivative contract held as an economic hedge$(5,540)$18,045 $(5,223)$(3,002)$(7,393)$12,505 $(17,790)
Summary of Mortgage Banking Revenue:
Production revenue (1)
$37,531 $71,282 $70,886 $94,148 $93,433 $108,813 $142,760 
Servicing income9,830 9,636 9,829 8,118 6,908 19,466 13,939 
MSR activity3,432 32,493 6,097 10,072 4,287 35,925 (3,686)
Other(209)83 (3,794)(2,304)(126)(2,363)
Total mortgage banking revenue$50,584 $113,494 $86,819 $108,544 $102,324 $164,078 $150,650 
(1)Production revenue represents revenue earned from the origination and subsequent sale of mortgages, including gains on loans sold and fees from originations, changes in other related financial instruments carried at fair value, processing and other related activities, and excludes servicing fees, changes in the fair value of servicing rights and changes to the mortgage recourse obligation and other non-production revenue.
34


TABLE 17: NON-INTEREST EXPENSE

Three Months EndedQ2 2021 compared to
Q1 2020
Q2 2021 compared to
Q2 2020
Jun 30,Mar 31,Dec 31,Sep 30,Jun 30,
(Dollars in thousands)20212021202020202020$ Change% Change$ Change% Change
Salaries and employee benefits:
Salaries$91,089 $91,053 $93,535 $89,849 $87,105 $36 %$3,984 %
Commissions and incentive compensation53,751 61,367 52,383 48,475 46,151 (7,616)(12)7,600 16 
Benefits27,977 28,389 25,198 25,718 20,900 (412)(1)7,077 34 
Total salaries and employee benefits172,817 180,809 171,116 164,042 154,156 (7,992)(4)18,661 12 
Equipment20,866 20,912 20,565 17,251 15,846 (46)5,020 32 
Operating lease equipment depreciation9,949 10,771 9,938 9,425 9,292 (822)(8)657 
Occupancy, net17,687 19,996 19,687 15,830 16,893 (2,309)(12)794 
Data processing6,920 6,048 5,728 5,689 10,406 872 14 (3,486)(33)
Advertising and marketing11,305 8,546 9,850 7,880 7,704 2,759 32 3,601 47 
Professional fees7,304 7,587 6,530 6,488 7,687 (283)(4)(383)(5)
Amortization of other intangible assets2,039 2,007 2,634 2,701 2,820 32 (781)(28)
FDIC insurance6,405 6,558 7,016 6,772 7,081 (153)(2)(676)(10)
OREO expense, net769 (251)(114)(168)237 1,020 NM532 NM
Other:
Commissions - 3rd party brokers889 846 764 778 707 43 182 26 
Postage1,900 1,743 1,849 1,529 1,591 157 309 19 
Miscellaneous21,262 21,317 26,304 26,002 24,948 (55)(3,686)(15)
Total other24,051 23,906 28,917 28,309 27,246 145 (3,195)(12)
Total Non-Interest Expense$280,112 $286,889 $281,867 $264,219 $259,368 $(6,777)(2)%$20,744 %
NM - Not meaningful.

Six Months Ended
Jun 30,Jun 30,$%
(Dollars in thousands)20212020ChangeChange
Salaries and employee benefits:
Salaries$182,142 $168,391 $13,751 %
Commissions and incentive compensation115,118 77,726 37,392 48 
Benefits56,366 44,801 11,565 26 
Total salaries and employee benefits353,626 290,918 62,708 22 
Equipment41,778 30,680 11,098 36 
Operating lease equipment depreciation20,720 18,552 2,168 12 
Occupancy, net37,683 34,440 3,243 
Data processing12,968 18,779 (5,811)(31)
Advertising and marketing19,851 18,566 1,285 
Professional fees14,891 14,408 483 
Amortization of other intangible assets4,046 5,683 (1,637)(29)
FDIC insurance12,963 11,216 1,747 16 
OREO expense, net518 (639)1,157 NM
Other:
Commissions - 3rd party brokers1,735 1,572 163 10 
Postage3,643 3,540 103 
Miscellaneous42,579 46,294 (3,715)(8)
Total other47,957 51,406 (3,449)(7)
Total Non-Interest Expense$567,001 $494,009 $72,992 15 %
NM - Not meaningful.
35


TABLE 18: SUPPLEMENTAL NON-GAAP FINANCIAL MEASURES/RATIOS

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

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

36


Three Months EndedSix Months Ended
 Jun 30,Mar 31,Dec 31,Sep 30,Jun 30,Jun 30,Jun 30,
(Dollars and shares in thousands)2021202120202020202020212020
Reconciliation of Non-GAAP Net Interest Margin and Efficiency Ratio:
(A) Interest Income (GAAP)$319,579 $305,469 $307,981 $311,156 $329,816 $625,048 $673,883 
Taxable-equivalent adjustment:
 - Loans415 384 324 481 576 799 1,436 
 - Liquidity Management Assets494 500 530 546 538 994 1,089 
 - Other Earning Assets —  
(B) Interest Income (non-GAAP)$320,488 $306,353 $308,838 $312,184 $330,933 $626,841 $676,413 
(C) Interest Expense (GAAP)39,989 43,574 48,584 55,220 66,685 83,563 149,309 
(D) Net Interest Income (GAAP) (A minus C)$279,590 $261,895 $259,397 $255,936 $263,131 $541,485 $524,574 
(E) Net Interest Income (non-GAAP) (B minus C)$280,499 $262,779 $260,254 $256,964 $264,248 $543,278 $527,104 
Net interest margin (GAAP)2.62 %2.53 %2.53 %2.56 %2.73 %2.58 %2.91 %
Net interest margin, fully taxable-equivalent (non-GAAP)2.63 2.54 2.54 2.57 2.74 2.59 2.93 
(F) Non-interest income$129,373 $186,506 $158,361 $170,593 $161,993 $315,879 $275,235 
(G) Gains on investment securities, net1,285 1,154 1,214 411 808 2,439 (3,551)
(H) Non-interest expense280,112 286,889 281,867 264,219 259,368 567,001 494,009 
Efficiency ratio (H/(D+F-G))68.71 %64.15 %67.67 %62.01 %61.13 %66.32 %61.49 %
Efficiency ratio (non-GAAP) (H/(E+F-G))68.56 64.02 67.53 61.86 60.97 66.18 61.30 
Reconciliation of Non-GAAP Tangible Common Equity Ratio:
Total shareholders’ equity (GAAP)$4,339,011$4,252,511$4,115,995$4,074,089$3,990,218
Less: Non-convertible preferred stock (GAAP)(412,500)(412,500)(412,500)(412,500)(412,500)
Less: Intangible assets (GAAP)(678,333)(680,052)(681,747)(683,314)(685,581)
(I) Total tangible common shareholders’ equity (non-GAAP)$3,248,178$3,159,959$3,021,748$2,978,275$2,892,137
(J) Total assets (GAAP)$46,738,450$45,682,202$45,080,768$43,731,718$43,540,017
Less: Intangible assets (GAAP)(678,333)(680,052)(681,747)(683,314)(685,581)
(K) Total tangible assets (non-GAAP)$46,060,117$45,002,150$44,399,021$43,048,404$42,854,436
Common equity to assets ratio (GAAP) (L/J)8.4 %8.4 %8.2 %8.4 %8.2 %
Tangible common equity ratio (non-GAAP) (I/K)7.1 7.0 6.8 6.9 6.7 
37


Three Months EndedSix Months Ended
 Jun 30,Mar 31,Dec 31,Sep 30,Jun 30,Jun 30,Jun 30,
(Dollars and shares in thousands)2021202120202020202020212020
Reconciliation of Non-GAAP Tangible Book Value per Common Share:
Total shareholders’ equity$4,339,011 $4,252,511 $4,115,995 $4,074,089 $3,990,218 
Less: Preferred stock(412,500)(412,500)(412,500)(412,500)(412,500)
(L) Total common equity$3,926,511 $3,840,011 $3,703,495 $3,661,589 $3,577,718 
(M) Actual common shares outstanding57,067 57,023 56,770 57,602 57,574 
Book value per common share (L/M)$68.81 $67.34 $65.24 $63.57 $62.14 
Tangible book value per common share (non-GAAP) (I/M)56.92 $55.42 53.23 51.70 50.23 
Reconciliation of Non-GAAP Return on Average Tangible Common Equity:
(N) Net income applicable to common shares$98,118 $146,157 $94,213 $97,029 $19,609 $244,275 $80,371 
Add: Intangible asset amortization2,039 2,007 2,634 2,701 2,820 4,046 5,683 
Less: Tax effect of intangible asset amortization(553)(522)(656)(589)(832)(1,068)(1,608)
After-tax intangible asset amortization$1,486 $1,485 $1,978 $2,112 $1,988 $2,978 $4,075 
(O) Tangible net income applicable to common shares (non-GAAP)$99,604 $147,642 $96,191 $99,141 $21,597 $247,253 $84,446 
Total average shareholders' equity$4,256,778 $4,164,890 $4,050,286 $4,034,902 $3,908,846 $4,211,088 $3,809,508 
Less: Average preferred stock(412,500)(412,500)(412,500)(412,500)(273,489)(412,500)(199,245)
(P) Total average common shareholders' equity$3,844,278 $3,752,390 $3,637,786 $3,622,402 $3,635,357 $3,798,588 $3,610,263 
Less: Average intangible assets(679,535)(680,805)(682,290)(684,717)(686,526)(680,166)(688,652)
(Q) Total average tangible common shareholders’ equity (non-GAAP)$3,164,743 $3,071,585 $2,955,496 $2,937,685 $2,948,831 $3,118,422 $2,921,611 
Return on average common equity, annualized (N/P)10.24 %15.80 %10.30 %10.66 %2.17 %12.97 %4.48 %
Return on average tangible common equity, annualized (non-GAAP) (O/Q)12.62 19.49 12.95 13.43 2.95 15.99 5.81 
Reconciliation of Non-GAAP Pre-Tax, Pre-Provision Income:
Income before taxes$144,150 $206,859 $134,711 $137,284 $30,703 $351,009 $117,786 
Add: Provision for credit losses(15,299)(45,347)1,180 25,026 135,053 (60,646)188,014 
Pre-tax income, excluding provision for credit losses (non-GAAP)$128,851 $161,512 $135,891 $162,310 $165,756 $290,363 $305,800 

38


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, Crete, Countryside, Darien, Deerfield, Des Plaines, Downers Grove, Elgin, Elk Grove Village, Elmhurst, Evanston, Evergreen Park, Frankfort, Geneva, Glen Ellyn, Glencoe, Glenview, Gurnee, Grayslake, Hanover Park, Highland Park, Highwood, Hoffman Estates, Homer Glen, Itasca, Joliet, Lake Bluff, Lake Villa, Lansing, Lemont, Lindenhurst, Lynwood, Markham, Maywood, McHenry, Mokena, Mount Prospect, Mundelein, Naperville, Northfield, Norridge, Oak Lawn, Orland Park, Palatine, Park Ridge, Prospect Heights, Riverside, Rolling Meadows, Round Lake Beach, Shorewood, Skokie, South Holland, 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 and Wind Lake, and in Dyer, Indiana and in Naples, Florida.

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 2020 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:
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the severity, magnitude and duration of the COVID-19 pandemic, including the 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 our operations and personnel, commercial activity and demand across our business and our customers’ businesses;
the disruption of global, national, state and local economies associated with the COVID-19 pandemic, which could affect the Company’s liquidity and capital positions, impair the ability of our borrowers to repay outstanding loans, impair collateral values and further increase our allowance for credit losses;
the impact of the COVID-19 pandemic on our financial results, including possible lost revenue and increased expenses (including the cost of capital), as well as possible goodwill impairment charges;
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;
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 (including developments and volatility arising from or related to the COVID-19 pandemic) that may affect, among other things, the Company’s liquidity and the value of its assets and liabilities;
a prolonged period of near zero interest rates or potentially negative interest rates, either broadly or for some types of instruments, which may affect the Company’s net interest income and net interest margin, and which could materially adversely affect the Company’s profitability;
competitive pressures in the financial services business which may affect the pricing of the Company’s loan and deposit products as well as its services (including wealth management services), which may result in loss of market share and reduced income from deposits, loans, advisory fees and income from other products;
failure to identify and complete favorable acquisitions in the future or unexpected difficulties or developments related to the integration of the Company’s recent or future acquisitions;
unexpected difficulties and losses related to FDIC-assisted acquisitions;
harm to the Company’s reputation;
any negative perception of the Company’s financial strength;
ability of the Company to raise additional capital on acceptable terms when needed;
disruption in capital markets, which may lower fair values for the Company’s investment portfolio;
ability of the Company to use technology to provide products and services that will satisfy customer demands and create efficiencies in operations and to manage risks associated therewith;
failure or breaches of our security systems or infrastructure, or those of third parties;
security breaches, including denial of service attacks, hacking, social engineering attacks, malware intrusion or data corruption attempts and identity theft;
adverse effects on our information technology systems resulting from failures, human error or cyberattacks (including ransomware);
adverse effects of failures by our vendors to provide agreed upon services in the manner and at the cost agreed, particularly our information technology vendors;
increased costs as a result of protecting our customers from the impact of stolen debit card information;
accuracy and completeness of information the Company receives about customers and counterparties to make credit decisions;
ability of the Company to attract and retain senior management experienced in the banking and financial services industries;
environmental liability risk associated with lending activities;
the impact of any claims or legal actions to which the Company is subject, including any effect on our reputation;
losses incurred in connection with repurchases and indemnification payments related to mortgages and increases in reserves associated therewith;
the loss of customers as a result of technological changes allowing consumers to complete their financial transactions without the use of a bank;
the soundness of other financial institutions;
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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;
uncertainty about the discontinued use of LIBOR and transition to an alternative rate;
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, including those changes that are in response to the COVID-19 pandemic, including without limitation the CARES Act, the Economic Aid to Hard-Hit Small Businesses, Nonprofits and Venues Act, and the rules and regulations that may be promulgated thereunder;
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 the COVID-19 pandemic 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; and
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 the press release. Persons are advised, however, to consult further disclosures management makes on related subjects in its reports filed with the Securities and Exchange Commission and in its press releases.

CONFERENCE CALL, WEBCAST AND REPLAY

The Company will hold a conference call on Tuesday, July 20, 2021 at 11:00 a.m. (Central Time) regarding second quarter 2021 results. Individuals interested in listening should call (877) 363-5049 and enter Conference ID #8765066. A simultaneous audio-only webcast and replay of the conference call as well as an accompanying slide presentation may be accessed via the Company’s website at https://www.wintrust.com, Investor Relations, Investor News and Events, Presentations & Conference Calls. The text of the second quarter 2021 earnings press release will 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.

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