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8-K

Wintrust Financial Corp (WTFC)

8-K 2020-07-22 For: 2020-07-21
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UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 8-K

Current Report

Pursuant to Section 13 or 15(d) of The

Securities Exchange Act of 1934

Date of Report (Date of earliest event reported): July 21, 2020

WINTRUST FINANCIAL CORPORATION

(Exact name of registrant as specified in its charter)

Illinois 001-35077 36-3873352
(State or other jurisdiction of Incorporation) (Commission File Number) (I.R.S. Employer<br><br>Identification No.)
9700 W. Higgins Road, Suite 800 Rosemont Illinois 60018
(Address of principal executive offices) (Zip Code)

Registrant’s telephone number, including area code (847) 939-9000

Not Applicable

(Former name or former address, if changed since last year)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

| ☐ | Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) | | --- | --- || ☐ | Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) | | --- | --- || ☐ | Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) | | --- | --- || ☐ | Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) | | --- | --- || Title of Each Class | Ticker Symbol | Name of Each Exchange on Which Registered | | --- | --- | --- | | Common Stock, no par value | WTFC | The NASDAQ Global Select Market | | Series D Preferred Stock, no par value | WTFCM | The NASDAQ Global Select Market | | Series E Preferred Stock, no par value | WTFCP | The NASDAQ Global Select Market |

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

Emerging growth company     ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.     ☐

Item 2.02. Results of Operations and Financial Condition

The information in this Current Report is being furnished and shall not be deemed “filed” for the purposes of Section 18 of the Securities Exchange Act of 1934, as amended, or otherwise subject to the liabilities of that Section. The information in this Current Report shall not be incorporated by reference into any registration statement or other document pursuant to the Securities Act of 1933, as amended.

On July 21, 2020, Wintrust Financial Corporation (the “Company”) announced earnings for the second quarter of 2020 and posted on its website the Second Quarter 2020 Earnings Release Presentation. Copies of the press release relating to the Company’s earnings results and the related presentation are attached hereto as Exhibit 99.1 and Exhibit 99.2, respectively. Certain supplemental information relating to non-GAAP financial measures reported in the attached press release and presentation is included on pages 36 through 38 of Exhibit 99.1 and pages 17 through 18 of Exhibit 99.2.

Item 9.01. Financial Statements and Exhibits

(d) Exhibits

Exhibit
99.1 Second Quarter 2020 Earnings Release dated July 21, 2020
99.2 Second Quarter 2020 Earnings Release Presentation dated July 21, 2020

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Signature

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

WINTRUST FINANCIAL CORPORATION<br><br>(Registrant)
By: /s/ David L. Stoehr
David L. Stoehr<br><br>Executive Vice President and<br><br>Chief Financial Officer

Date: July 21, 2020

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INDEX TO EXHIBITS

Exhibit
99.1 Second Quarter 2020 Earnings Release dated July 21, 2020
99.2 Second Quarter 2020 Earnings Release Presentation dated July 21, 2020

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		Exhibit

Exhibit 99.1

Wintrust Financial Corporation

9700 W. Higgins Road, Suite 800, Rosemont, Illinois 60018

News Release

FOR IMMEDIATE RELEASE July 21, 2020

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 2020 Net Income of $21.7 million and Year-to-Date Net Income of $84.5 million

ROSEMONT, ILLINOIS – Wintrust Financial Corporation (“Wintrust” or “the Company”) (Nasdaq: WTFC) announced net income of $21.7 million or $0.34 per diluted common share for the second quarter of 2020, a decrease in diluted earnings per common share of 67.3% compared to the prior quarter and a decrease of 75.4% compared to the second quarter of 2019. The Company recorded net income of $84.5 million or $1.38 per diluted common share for the first six months of 2020 compared to net income of $170.6 million or $2.91 per diluted common share for the same period of 2019.

Highlights of the Second Quarter of 2020:

Comparative information to the first quarter of 2020

• Total assets increased by $4.7 billion, including $3.3 billion of Paycheck Protection Program ("PPP") loans, net of fees.
• Total loans increased by $3.6 billion, including $3.3 billion of PPP loans, net of fees.
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◦ Lines of credit utilization declined to approximately 49% at June 30, 2020 as compared to approximately 56% at March 31, 2020.
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• Total deposits increased by $4.2 billion, primarily related to both PPP lending and organic growth of retail deposits.
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• Net interest income increased by $1.7 million as the impact of a $5.1 billion increase in average earning assets was partially offset by a 39 basis point decline in net interest margin. The decline in net interest margin was largely due to declining interest rates and excess short–term liquidity on the balance sheet.
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• The loans to deposits ratio ended the second quarter of 2020 at 88.1% as compared to 88.4% at prior quarter end. Excluding PPP loans, the loans to deposits ratio ended the second quarter of 2020 at 78.7%.
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• Mortgage banking revenue increased by $54.0 million to $102.3 million for the second quarter of 2020 as compared to $48.3 million in the prior quarter.
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◦ Loans originated for sale in the second quarter of 2020 totaled $2.2 billion as compared to $1.2 billion in the prior quarter.
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◦ Recorded a decrease in the value of mortgage servicing rights related to changes in fair value model assumptions, net of derivative contract activity held as an economic hedge, of $7.4 million in the second quarter of 2020 as compared to a decline of $10.4 million in the prior quarter.
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◦ Accrued $7.2 million of additional contingent consideration expense related to the previous acquisitions of mortgage operations in the second quarter of 2020 as compared to $329,000 in the prior quarter, which was recorded in other non-interest expense.
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• Provision for credit losses of $135.1 million in the second quarter of 2020. Provision for credit losses increased by $82.1 million from $53.0 million in the first quarter of 2020. The increased provision for credit losses expense in the second quarter of 2020 was primarily related to generally deteriorating forecasted economic conditions impacted by the COVID-19 pandemic which are an input in the Company's Current Expected Credit Loss ("CECL") models.
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• Recorded net charge-offs of $15.4 million in the second quarter of 2020, of which $9.5 million were previously reserved for, as compared to net charge-offs of $5.3 million in the first quarter of 2020.
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• Non-performing assets totaled $198.5 million as of June 30, 2020, or 0.46% of total assets, as compared to $190.4 million, or 0.49% of total assets, as of the prior quarter end.
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• The allowance for credit losses on our core loan portfolio is approximately 1.85% of the outstanding balance as of June 30, 2020, up from 1.26% as of the prior quarter end.
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• Incurred acquisition related costs of $4.9 million in the second quarter of 2020 as compared to $1.7 million in the first quarter of 2020.

Other highlights of the second quarter of 2020

• Paid $2.6 million of COVID-19 related salary incentives to non-executive personnel.
• Originated $3.4 billion of PPP loans which generated net fees of $91.0 million to be recognized over the estimated life of the PPP loans. Fees are recognized on a level yield basis which incorporates estimates of the timing of customer requested forgiveness, Small Business Administration ("SBA") approval of forgiveness and the repayment timing from the SBA.
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• Recorded COVID-19 related loan modifications for customers with aggregate outstanding balances of approximately $1.7 billion or 9% of total loans, excluding PPP loans and premium finance receivables. The modifications primarily changed terms to interest-only payments or full payment deferrals.
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• Completed a preferred stock issuance which generated proceeds of $278.4 million, net of the underwriting discount, which contributed to increasing estimated Tier 1 and Total Capital ratios to 10.1% and 12.8%, respectively.
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Edward J. Wehmer, Founder and Chief Executive Officer, commented, "I am very proud of the extraordinary effort put forth by our employees to support our customers and our communities amid the challenges of COVID-19. Wintrust reported net income of $21.7 million for the second quarter of 2020, down from $62.8 million in the first quarter of 2020. However, pre-tax income, excluding provision for credit losses and MSR valuation adjustments (non-GAAP), increased by $22.7 million over the previous quarter and $35.0 million over the second quarter of 2019. The Company experienced strong balance sheet growth as total assets were $4.7 billion higher than the prior quarter end and $9.9 billion higher than the end of the second quarter of 2019. The second quarter of 2020 was characterized by significant balance sheet growth, declining net interest margin, strong mortgage banking revenue, increased provision for credit losses and a continued focus to increase franchise value in our market area."

Mr. Wehmer continued, "The Company grew total loans by $3.6 billion in the second quarter of 2020 including $3.3 billion related to PPP lending. The Company experienced significant growth in its commercial insurance premium finance and life insurance premium finance receivable portfolios partially offset by a decline in its commercial portfolio. Growth in the commercial insurance premium finance portfolio was in part due to hardening insurance market conditions driving the average size of new commercial insurance premium finance receivables to approximately $38,000 in the second quarter as compared to $31,000 in the first quarter of 2020. The decline in the commercial loan portfolio is primarily attributed to paydowns in the second quarter of 2020 related to both existing customers receiving PPP loans and repayment of balances that were drawn in the first quarter of 2020. As a result, credit line utilization was approximately 49% at June 30, 2020 as compared to approximately 56% at March 31, 2020. Total deposits increased by $4.2 billion as compared to the first quarter of 2020 including $2.6 billion of non-interest bearing deposit growth primarily related to PPP lending. In addition, the Company continued to grow organic retail deposits including its MaxSafe^TM^ deposit products which grew by $482 million in the second quarter of 2020. Our loans to deposits ratio ended the quarter at 88.1% and we are confident that we have sufficient liquidity to meet customer loan demand."

Mr. Wehmer commented, "Net interest income increased in the second quarter of 2020 primarily due to earning asset growth but was partially offset by a 39 basis point decline in the net interest margin. The decline in net interest margin was primarily due to downward repricing of variable rate loans and an increase in interest bearing cash balances, partially offset by favorable repricing of interest bearing deposits and accretion of PPP fees. At this point, the majority of our variable rate loan portfolio has repriced to reflect the low interest rate environment. As such, excluding the impact of PPP fees, we expect to be able to mitigate potential future loan yield compression with improvement in pricing on interest bearing deposits. Further, to the extent we identify prudent opportunities to deploy excess liquidity, we may be able to improve net interest margin."

Mr. Wehmer noted, “Our mortgage banking business delivered a record quarter of mortgage banking revenue in light of the demand associated with historically low long-term interest rates. Loan volumes originated for sale in the second quarter of 2020 were $2.2 billion, as compared to $1.2 billion in the first quarter of 2020. As a result of increases in both current and forecasted revenues given the favorable mortgage banking environment, the Company recorded increased contingent consideration expense related to the previous acquisitions of mortgage operations. Additionally, the Company recorded a $7.4 million decrease in the value of mortgage servicing rights related to changes in fair value model assumptions, net of derivative contract activity held as an economic hedge. We are leveraging efficiencies in our delivery channels and staffing strategies to keep pace with unprecedented demand. The strong quarter of mortgage performance contributed to reporting a 0.93% net overhead ratio for the second quarter of 2020. We believe the third quarter of 2020 will provide another strong quarter for mortgage banking production."

Commenting on credit quality, Mr. Wehmer stated, "The Company recorded provision for credit losses of $135.1 million in the second quarter primarily related to generally deteriorating forecasted economic conditions impacted by the COVID-19 pandemic. Net charge-offs totaled $15.4 million in the second quarter of 2020, of which $9.5 million were previously reserved for, as compared to $5.3 million in the first quarter of 2020. The level of non-performing assets increased by $8.1 million to $198.5 million. The

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allowance for credit losses on our core loan portfolio is approximately 1.85% of the outstanding balance. We believe that the Company’s reserves remain appropriate and we remain diligent in our review of credit."

Mindful of the challenges ahead, Mr. Wehmer noted, "We leverage robust capital and liquidity management frameworks, which include stress testing processes, to assess and monitor risk and inform decision making. In the second quarter of 2020, we completed a preferred stock issuance to bolster our capital position. We believe the Company has adequate liquidity and capital to effectively manage through the COVID-19 pandemic."

Mr. Wehmer concluded, "We remain committed to supporting our community, including the well-being and safety of our customers and employees. We believe that our opportunities for both internal and external growth remain consistently strong and were particularly enhanced as a result of our successful participation in PPP lending. However, we continue to carefully monitor the COVID-19 pandemic and evaluate the impact that it could have on the economy, our customers and our business. We remain focused on navigating the current environment by actively monitoring and managing our credit portfolio."

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The graphs below illustrate certain financial highlights of the second quarter of 2020. 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 $4.7 billion in the second quarter of 2020 was primarily comprised of a $3.6 billion increase in loans and a $2.1 billion increase in interest bearing deposits with banks, partially offset by a $513 million decrease in investment securities and a $502 million decrease in trade date securities receivables. The Company believes that the $4.0 billion of interest bearing deposits with banks held as of June 30, 2020 provides more than sufficient liquidity to operate its business plan.

Total liabilities grew by $4.5 billion in the second quarter of 2020 resulting primarily from a $4.2 billion increase in total deposits. The increase in deposits included $2.6 billion of non-interest bearing deposit growth primarily related to PPP funding. In addition, the Company successfully grew deposits in the second quarter through organic retail channels including continued success of MaxSafe^TM^ deposit products which grew by $482 million in the second quarter. Our loans to deposits ratio ended the quarter at 88.1%. 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 2020, net interest income totaled $263.1 million, an increase of $1.7 million as compared to the first quarter of 2020 and a decrease of $3.1 million as compared to the second quarter of 2019. The $1.7 million increase in net interest income in the second quarter of 2020 compared to the first quarter of 2020 was attributable to the impact of a $5.1 billion increase in average earning assets. This impact was partially offset by a 39 basis point decline in net interest margin.

Net interest margin was 2.73% (2.74% on a fully taxable-equivalent basis, non-GAAP) during the second quarter of 2020 compared to 3.12% (3.14% on a fully taxable-equivalent basis, non-GAAP) during the first quarter of 2020 and 3.62% (3.64% on a fully taxable-equivalent basis, non-GAAP) during the second quarter of 2019. The 39 basis point decrease in net interest margin in the second quarter of 2020 as compared to the first quarter of 2020 was attributable to a 68 basis point decline in the yield on earnings assets and a seven basis point decrease in the net free funds contribution partially offset by a 36 basis point decrease in the rate paid on interest bearing liabilities. The 68 basis point decline in the yield on earning assets in the second quarter as compared to the first quarter of 2020 was primarily due to a 60 basis point decline in the yield on loans along with an increased balance and reduced yield on interest bearing cash. The 36 basis point decrease in the rate paid on interest bearing liabilities in the second quarter as compared to the prior quarter is primarily due to a 39 basis point decrease in the rate paid on interest bearing deposits as management initiated various deposit rate reductions given the decreased interest rate environment.

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

ASSET QUALITY

The allowance for credit losses totaled $373.2 million as of June 30, 2020 an increase of $119.7 million as compared to $253.5 million as of March 31, 2020. A summary of the allowance for loan losses calculated for the loan components in the core loan portfolio, the niche and consumer loan portfolio and purchased loan portfolio as of June 30, 2020 and March 31, 2020 is shown on Table 12 of this report.

The provision for credit losses totaled $135.1 million for the second quarter of 2020 compared to $53.0 million for the first quarter of 2020 and $24.6 million for the second quarter of 2019. The increased provision for credit losses expense in the second quarter was primarily related to generally deteriorating forecasted economic conditions impacted by the COVID-19 pandemic. Specifically, the negative impact of the COVID-19 pandemic on the projected commercial real-estate price index materially impacted the modeled losses from the commercial real-estate portfolio. Management believes the allowance for credit losses is appropriate to account for expected credit losses. The 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. For more information regarding the provision for credit losses, see Table 11 in this report.

Net charge-offs totaled $15.4 million in the second quarter of 2020, a $10.1 million increase from $5.3 million in the first quarter of 2020 and a $6.9 million decrease from $22.3 million in the second quarter of 2019. Net charge-offs as a percentage of average total loans, in the second quarter of 2020 totaled 20 basis points on an annualized basis compared to eight basis points on an

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annualized basis in the first quarter of 2020 and 36 basis points on an annualized basis in the second quarter of 2019. For more information regarding net charge-offs, see Table 10 in this report.

As of June 30, 2020, $79.3 million of all loans, or 0.3%, were 60 to 89 days past due and $166.4 million, or 0.5%, were 30 to 59 days (or one payment) past due. As of March 31, 2020, $33.0 million of all loans, or 0.1%, were 60 to 89 days past due and $262.7 million, or 0.9%, 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 loan portfolios continue to exhibit low delinquency rates as of June 30, 2020. Home equity loans at June 30, 2020 that are current with regard to the contractual terms of the loan agreement represent 98.2% of the total home equity portfolio. Residential real estate loans at June 30, 2020 that are current with regards to the contractual terms of the loan agreements comprised 98.2% of total residential real estate loans outstanding. For more information regarding past due loans, see Table 13 in this report.

In the second quarter of 2020, the Company recorded $1.7 billion of COVID-19 related loan modifications. These loan modifications were comprised primarily of $882.1 million commercial loans and $822.6 million commercial real-estate loans. The modifications primarily changed terms to interest-only payments or full payment deferrals.

Prior to January 1, 2020, purchased credit impaired ("PCI") loans were aggregated into pools by common risk characteristics for accounting purposes, including recognition of interest income on a pool basis. Measurement of any allowance for loan losses on these loans were offset by the remaining credit discount related to the pool. As a result of the implementation of CECL, beginning in the first quarter of 2020, PCI loans transitioned to a classification of purchased financial assets with credit deterioration ("PCD"), which no longer maintains the prior pools and related accounting concepts. Measurement of any allowance for loan losses on PCD loans is no longer offset by the remaining discount, resulting in additional allowance being recognized at January 1, 2020 through a cumulative effect adjustment to retained earnings. See Table 10 for information on this increase at transition. Additionally, recognition of interest income on PCD loans is considered at the individual asset level following the Company's accrual policies, instead of based upon the entire pool of loans. Due to the first quarter of 2020 adoption of CECL, the Company included $30.3 million in non-performing PCD loans in total non-performing loans as of June 30, 2020.

The ratio of non-performing assets to total assets was 0.46% as of June 30, 2020, compared to 0.49% at March 31, 2020, and 0.40% at June 30, 2019. Non-performing assets totaled $198.5 million at June 30, 2020, compared to $190.4 million at March 31, 2020 and $133.5 million at June 30, 2019. Non-performing loans totaled $188.3 million, or 0.60% of total loans, at June 30, 2020 compared to $179.4 million, or 0.65% of total loans, at March 31, 2020 and $113.4 million, or 0.45% of total loans, at June 30, 2019. The increase in non-performing loans in the second quarter of 2020 as compared to the prior quarter is primarily due to a $14.5 million increase in total non-performing premium finance receivable balances. State emergency orders and pandemic delays on processing of return premiums, which serve as our collateral, contributed to the increase in 90 day past due premium finance receivables. Other real estate owned ("OREO") of $10.2 million at June 30, 2020 decreased by $829,000 compared to $11.0 million at March 31, 2020 and decreased $9.6 million compared to $19.8 million at June 30, 2019. 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 decreased by $3.3 million during the second quarter of 2020 as compared to the first quarter of 2020 primarily due to decreased asset management fees, trust fees and brokerage commissions. Declines in asset management and trust fees are primarily due to volatile equity markets since year end. Brokerage commissions were negatively impacted in the second quarter of 2020 due to lower transactional volume as compared to the prior quarter. Wealth management revenue is comprised of the trust and asset management revenue of The Chicago Trust Company and Great Lakes Advisors, the brokerage commissions, managed money fees and insurance product commissions at Wintrust Investments and fees from tax-deferred like-kind exchange services provided by the Chicago Deferred Exchange Company.

Mortgage banking revenue increased by $54.0 million in the second quarter of 2020 as compared to the first quarter of 2020, primarily as a result of a $1.0 billion increase in loans originated for sale. Loans originated for sale were $2.2 billion in the second quarter of 2020 as compared to $1.2 billion in the first quarter of 2020. The percentage of origination volume from refinancing activities was 70% in the second quarter of 2020 as compared to 63% in the first quarter of 2020. 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 2020, the fair value of the mortgage servicing rights portfolio increased primarily due to increased capitalization of $20.4 million during the second quarter. This increase was partially offset by a negative fair value adjustment of $8.0 million as well as a reduction in value of $8.7 million due to payoffs and paydowns of the existing portfolio. The Company entered into interest rate swaps at the beginning of the fourth quarter of 2019 to economically hedge a portion of the potential negative fair value changes recorded in earnings related to its mortgage servicing rights portfolio. The Company recorded a gain of $589,000 on the interest rate swaps held as economic hedges against the mortgage servicing rights primarily related to the mark to market valuation adjustment which was recorded in mortgage banking revenue. During the second quarter of 2020, the Company terminated the interest rate swaps. No economic hedges were outstanding relative to the mortgage servicing rights portfolio at the end of the second quarter of 2020.

The net gains recognized on investment securities in the second quarter of 2020 were $808,000 as compared to a net loss of $4.4 million in the first quarter of 2020. The gains recorded in the second quarter of 2020 primarily relate to unrealized gains on market sensitive securities held by the Company.

Other non-interest income decreased by $3.6 million in the second quarter of 2020 as compared to the first quarter of 2020 primarily due to lower card and merchant services based fees, gains realized on the sales of loan and leases in the first quarter of 2020 and losses on investment partnerships in the second quarter. These decreases were partially offset by market gains on BOLI investments related to non-qualified deferred compensation accounts recorded in BOLI income.

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

NON-INTEREST EXPENSE

Salaries and employee benefits expense increased by $17.4 million in the second quarter of 2020 as compared to the first quarter of 2020. The $17.4 million increase is comprised of an increase of $14.6 million in commissions and incentive compensation and an increase of $5.8 million in salaries expense partially offset by a $3.0 million decrease in employee benefits expense. The increase in commissions and incentive compensation is primarily due to increased origination volume associated with the Company's mortgage business. The increase in salaries expense is primarily related to COVID-19 related salary incentives, the impact of a full quarter of annual merit increases, increased staffing to support mortgage origination and an increase in costs related to deferred compensation plans impacted by market returns of related BOLI investments.

Data processing expenses totaled $10.4 million in the second quarter of 2020, an increase of $2.0 million as compared to the first quarter of 2020. The increase in the second quarter relates primarily to conversion costs of $4.5 million associated with the Countryside Bank acquisition as compared to $1.4 million of acquisition related conversion costs in the prior quarter. No additional material conversion charges are anticipated related to any completed acquisitions.

Advertising and marketing expenses in the second quarter of 2020 decreased by $3.2 million as compared to the first quarter of 2020 primarily related to lower sports sponsorship costs due to shortened or canceled seasons. Marketing costs are incurred to promote the Company's brand, commercial banking capabilities, the Company's various products, to attract loans and deposits and to announce new branch openings as well as the expansion of the Company's non-bank businesses. The level of marketing expenditures depends on the timing of sponsorship programs utilized which are determined based on the market area, targeted audience, competition and various other factors.

FDIC insurance expense totaled $7.1 million in the second quarter of 2020, an increase of $2.9 million as compared to the first quarter of 2020. This increase is primarily due to higher assessment rates impacted by declines in the Tier 1 Leverage Ratio at the Company's bank affiliates as a result of asset growth, including PPP loans.

Miscellaneous expense in the second quarter of 2020 increased $3.6 million as compared to the first quarter of 2020. The increase in the second quarter is primarily due to $7.2 million of contingent consideration expense accrued in the second quarter, as compared to $329,000 in the prior quarter, related to the previous acquisitions of mortgage operations. The increase in the contingent consideration accrual is a result of higher anticipated payments resulting from increases in both current and forecasted revenues related to the acquired businesses due to the favorable mortgage banking environment. Miscellaneous expense 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 $9.0 million in the second quarter of 2020 compared to $24.3 million in the first quarter of 2020 and $28.7 million in the second quarter of 2019. The effective tax rates were 29.46% in the second quarter of 2020 compared to 27.87% in the first quarter of 2020 and 26.06% in the second quarter of 2019.

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 2020, this unit expanded its loan and deposit portfolios. However, the banking segment also experienced net interest margin compression in part due to low and declining interest rates and possession of excess short-term liquidity.

Mortgage banking revenue was $102.3 million for the second quarter of 2020 an increase of $54.0 million as compared to the first quarter of 2020 primarily due to increased mortgage demand associated with historically low long-term interest rates. Services charges on deposit accounts totaled $10.4 million in the second quarter of 2020 a decrease of $845,000 as compared to the first quarter of 2020 primarily due to lower overdraft fees. The Company's gross commercial and commercial real estate loan pipelines remained strong as of June 30, 2020. Before the impact of scheduled payments and prepayments, gross commercial and commercial real estate loan pipelines were estimated to be approximately $1.1 billion to $1.2 billion at June 30, 2020. When adjusted for the probability of closing, the pipelines were estimated to be approximately $700 million to $800 million at June 30, 2020.

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 and accounts receivable financing, as well as value-added, out-sourced administrative services and other services. Originations within the insurance premium financing receivables portfolio were $3.1 billion during the second quarter of 2020 and average balances increased by $422.7 million as compared to the first quarter of 2020. Growth in the commercial insurance premium finance portfolio was in part due to hardening insurance market conditions driving the average size of new commercial insurance premium finance receivables to approximately $38,000 in the second quarter as compared to $31,000 in the first quarter of 2020. The increase in average balances was more than offset by margin compression in this portfolio resulting in a $4.2 million decrease in interest income attributed to the lower market rates of interest associated with the insurance premium finance receivables portfolio. The Company's leasing business grew during the second quarter of 2020, with its portfolio of assets, including capital leases, loans and equipment on operating leases, increasing by $231.2 million to $2.0 billion at the end of the second quarter of 2020. Revenues from the Company's out-sourced administrative services business were $933,000 in the second quarter of 2020, a decrease of $179,000 from the first quarter of 2020.

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 decreased by $3.3 million in the second quarter of 2020 compared to the first quarter of 2020, totaling $22.6 million in the second period. Declines in asset management and trust fees are primarily due to volatile equity markets since year end. Brokerage commissions were negatively impacted in the second quarter of 2020 due to lower transactional volume as compared to the prior quarter. At June 30, 2020, the Company’s wealth management subsidiaries had approximately $27.0 billion of assets under administration, which included $3.9 billion of assets owned by the Company and its subsidiary banks, representing a $2.0 billion increase from the $25.0 billion of assets under administration at March 31, 2020.

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ITEMS IMPACTING COMPARATIVE FINANCIAL RESULTS

Paycheck Protection Program

On March 27, 2020, the President of the United States signed the CARES Act which authorized the SBA to guarantee loans under the PPP for small businesses who meet the necessary eligibility requirements in order to keep their workers on the payroll. The Company began accepting applications on April 3, 2020. As of June 30, 2020, the Company secured authorization from the SBA and funded over 11,000 PPP loans with a carrying balance of approximately $3.3 billion.

Acquisitions

On November 1, 2019, the Company completed its acquisition of SBC, Incorporated (“SBC”).  SBC was the parent company of Countryside Bank. Through this business combination, the Company acquired Countryside Bank's six banking offices located in Countryside, Burbank, Darien, Homer Glen, Oak Brook and Chicago, Illinois. As of the acquisition date, the Company acquired approximately $620 million in assets, including approximately $423 million in loans, and approximately $508 million in deposits. The Company recorded goodwill of approximately $40 million on the acquisition.

On October 7, 2019, the Company completed its acquisition of STC Bancshares Corp. (“STC”).  STC was the parent company of STC Capital Bank. Through this business combination, the Company acquired STC Capital Bank's five banking offices located in the communities of St. Charles, Geneva and South Elgin, Illinois. As of the acquisition date, the Company acquired approximately $250 million in assets, including approximately $174 million in loans, and approximately $201 million in deposits. The Company recorded goodwill of approximately $19 million on the acquisition.

On May 24, 2019, the Company completed its acquisition of Rush-Oak Corporation ("ROC"). ROC was the parent company of Oak Bank. Through this business combination, the Company acquired Oak Bank's one banking location in Chicago, Illinois. As of the acquisition date, the Company acquired approximately $223 million in assets, including approximately $125 million in loans, and approximately $161 million in deposits. The Company recorded goodwill of approximately $12 million on the acquisition.

Adoption of New Credit Losses Accounting Standard

Beginning in 2020, the Company adopted the new current expected credit losses standard, or CECL, which impacted the measurement of the Company’s allowance for credit losses (including the allowance for unfunded lending-related commitments). CECL replaced the previous incurred loss methodology, which delayed recognition until such loss was probable, with a methodology that reflects an estimate of lifetime expected credit losses considering current economic condition and forecasts. Though other assets, including investment securities and other receivables, were considered in-scope of the standard and required a measurement of the allowance for credit loss, the most significant impact of CECL remains within the Company’s loan portfolios and related lending commitments. For more information regarding the adoption of CECL, see the "Asset Quality" section and the asset quality Tables 10-14 in this report.

12

WINTRUST FINANCIAL CORPORATION

Key Operating Measures

Wintrust’s key operating measures and growth rates for the second quarter of 2020, as compared to the first quarter of 2020 (sequential quarter) and second quarter of 2019 (linked quarter), are shown in the table below:

% or^(4)^<br><br>basis point  (bp) change from<br><br>1st Quarter<br><br>2020 % or<br><br>basis point  (bp)<br><br>change from<br><br>2nd Quarter<br><br>2019
Three Months Ended
(Dollars in thousands, except per share data) Jun 30, 2020 Mar 31, 2020 Jun 30, 2019
Net income $ 21,659 $ 62,812 $ 81,466 (66 ) % (73 ) %
Pre-tax income, excluding provision for credit losses (non-GAAP) ^(2)^ 165,756 140,044 134,753 18 23
Pre-tax income, excluding provision for credit losses and MSR valuation adjustments (non-GAAP) ^(2)^ 173,149 150,441 138,138 15 25
Net income per common share – diluted 0.34 1.04 1.38 (67 ) (75 )
Net revenue ^(1)^ 425,124 374,685 364,360 13 17
Net interest income 263,131 261,443 266,202 1 (1 )
Net interest margin 2.73 % 3.12 % 3.62 % (39 ) bp (89 ) bp
Net interest margin - fully taxable equivalent (non-GAAP) ^(2)^ 2.74 3.14 3.64 (40 ) (90 )
Net overhead ratio ^(3)^ 0.93 1.33 1.64 (40 ) (71 )
Return on average assets 0.21 0.69 1.02 (48 ) (81 )
Return on average common equity 2.17 6.82 9.68 (465 ) (751 )
Return on average tangible common equity (non-GAAP) ^(2)^ 2.95 8.73 12.28 (578 ) (933 )
At end of period
Total assets $ 43,540,017 $ 38,799,847 $ 33,641,769 49 % 29 %
Total loans ^(5)^ 31,402,903 27,807,321 25,304,659 52 24
Total deposits 35,651,874 31,461,660 27,518,815 54 30
Total shareholders’ equity 3,990,218 3,700,393 3,446,950 32 16
(1) Net revenue is net interest income plus non-interest income.
--- ---
(2) See "Supplemental Non-GAAP Financial Measures/Ratios" at Table 18 for additional information on this performance measure/ratio.
--- ---
(3) 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.
--- ---
(4) Period-end balance sheet percentage changes are annualized.
--- ---
(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.”

13

WINTRUST FINANCIAL CORPORATION

Selected Financial Highlights Three Months Ended Six Months Ended
(Dollars in thousands, except per share data) Jun 30, 2020 Mar 31, 2020 Dec 31, 2019 Sep 30, 2019 Jun 30, 2019 Jun 30, 2020 Jun 30, 2019
Selected Financial Condition Data (at end of period):
Total assets $ 43,540,017 $ 38,799,847 $ 36,620,583 $ 34,911,902 $ 33,641,769
Total loans ^(1)^ 31,402,903 27,807,321 26,800,290 25,710,171 25,304,659
Total deposits 35,651,874 31,461,660 30,107,138 28,710,379 27,518,815
Junior subordinated debentures 253,566 253,566 253,566 253,566 253,566
Total shareholders’ equity 3,990,218 3,700,393 3,691,250 3,540,325 3,446,950
Selected Statements of Income Data:
Net interest income $ 263,131 $ 261,443 $ 261,879 $ 264,852 $ 266,202 $ 524,574 $ 528,188
Net revenue ^(2)^ 425,124 374,685 374,099 379,989 364,360 799,809 708,003
Net income 21,659 62,812 85,964 99,121 81,466 84,471 170,612
Pre-tax income, excluding provision for credit losses (non-GAAP) ^(3)^ 165,756 140,044 124,508 145,435 134,753 305,800 264,022
Pre-tax income, excluding provision for credit losses and MSR valuation adjustments (non-GAAP) ^(3)^ 173,149 150,441 122,662 149,411 138,138 323,590 276,151
Net income per common share – Basic 0.34 1.05 1.46 1.71 1.40 1.40 2.94
Net income per common share – Diluted 0.34 1.04 1.44 1.69 1.38 1.38 2.91
Selected Financial Ratios and Other Data:
Performance Ratios:
Net interest margin 2.73 % 3.12 % 3.17 % 3.37 % 3.62 % 2.91 % 3.66 %
Net interest margin - fully taxable equivalent (non-GAAP) ^(3)^ 2.74 3.14 3.19 3.39 3.64 2.93 3.68
Non-interest income to average assets 1.55 1.24 1.25 1.35 1.23 1.41 1.15
Non-interest expense to average assets 2.48 2.58 2.78 2.74 2.87 2.53 2.83
Net overhead ratio ^(4)^ 0.93 1.33 1.53 1.40 1.64 1.12 1.68
Return on average assets 0.21 0.69 0.96 1.16 1.02 0.43 1.09
Return on average common equity 2.17 6.82 9.52 11.42 9.68 4.48 10.37
Return on average tangible common equity (non-GAAP) ^(3)^ 2.95 8.73 12.17 14.36 12.28 5.81 13.19
Average total assets $ 42,042,729 $ 36,625,490 $ 35,645,190 $ 33,954,592 $ 32,055,769 $ 39,334,109 $ 31,638,289
Average total shareholders’ equity 3,908,846 3,710,169 3,622,184 3,496,714 3,414,340 3,809,508 3,362,000
Average loans to average deposits ratio 87.8 % 90.1 % 88.8 % 90.6 % 93.9 % 88.9 % 93.3 %
Period-end loans to deposits ratio 88.1 88.4 89.0 89.6 92.0
Common Share Data at end of period:
Market price per common share $ 43.62 $ 32.86 $ 70.90 $ 64.63 $ 73.16
Book value per common share 62.14 62.13 61.68 60.24 58.62
Tangible book value per common share (non-GAAP) ^(3)^ 50.23 50.18 49.70 49.16 47.48
Common shares outstanding 57,573,672 57,545,352 57,821,891 56,698,429 56,667,846
Other Data at end of period:
Tier 1 leverage ratio ^(5)^ 8.1 % 8.5 % 8.7 % 8.8 % 9.1 %
Risk-based capital ratios:
Tier 1 capital ratio ^(5)^ 10.1 9.3 9.6 9.7 9.6
Common equity tier 1 capital ratio^(5)^ 8.8 8.9 9.2 9.3 9.2
Total capital ratio ^(5)^ 12.8 11.9 12.2 12.4 12.4
Allowance for credit losses ^(6)^ $ 373,174 $ 253,482 $ 158,461 $ 163,273 $ 161,901
Allowance for loan and unfunded lending-related commitment losses to total loans 1.19 % 0.91 % 0.59 % 0.64 % 0.64 %
Number of:
Bank subsidiaries 15 15 15 15 15
Banking offices 186 187 187 174 172
(1) Excludes mortgage loans held-for-sale.
--- ---
(2) Net revenue includes 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 both the allowance for loan losses and the allowance for unfunded lending-related commitments. Effective January 1, 2020, the allowance for credit losses also includes the allowance for investment securities as a result of the adoption of Accounting Standard Update ("ASU") 2016-13, Financial Instruments - Credit 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) 2020 2020 2019 2019 2019
Assets
Cash and due from banks $ 344,999 $ 349,118 $ 286,167 $ 448,755 $ 300,934
Federal funds sold and securities purchased under resale agreements 58 309 309 59 58
Interest bearing deposits with banks 4,015,072 1,943,743 2,164,560 2,260,806 1,437,105
Available-for-sale securities, at fair value 3,194,961 3,570,959 3,106,214 2,270,059 2,186,154
Held-to-maturity securities, at amortized cost 728,465 865,376 1,134,400 1,095,802 1,191,634
Trading account securities 890 2,257 1,068 3,204 2,430
Equity securities with readily determinable fair value 52,460 47,310 50,840 46,086 44,319
Federal Home Loan Bank and Federal Reserve Bank stock 135,571 134,546 100,739 92,714 92,026
Brokerage customer receivables 14,623 16,293 16,573 14,943 13,569
Mortgage loans held-for-sale 833,163 656,934 377,313 464,727 394,975
Loans, net of unearned income 31,402,903 27,807,321 26,800,290 25,710,171 25,304,659
Allowance for loan losses (313,510 ) (216,050 ) (156,828 ) (161,763 ) (160,421 )
Net loans 31,089,393 27,591,271 26,643,462 25,548,408 25,144,238
Premises and equipment, net 769,909 764,583 754,328 721,856 711,214
Lease investments, net 237,040 207,147 231,192 228,647 230,111
Accrued interest receivable and other assets 1,437,832 1,460,168 1,061,141 1,087,864 1,023,896
Trade date securities receivable — 502,207 — — 237,607
Goodwill 644,213 643,441 645,220 584,315 584,911
Other intangible assets 41,368 44,185 47,057 43,657 46,588
Total assets $ 43,540,017 $ 38,799,847 $ 36,620,583 $ 34,911,902 $ 33,641,769
Liabilities and Shareholders’ Equity
Deposits:
Non-interest bearing $ 10,204,791 $ 7,556,755 $ 7,216,758 $ 7,067,960 $ 6,719,958
Interest bearing 25,447,083 23,904,905 22,890,380 21,642,419 20,798,857
Total deposits 35,651,874 31,461,660 30,107,138 28,710,379 27,518,815
Federal Home Loan Bank advances 1,228,416 1,174,894 674,870 574,847 574,823
Other borrowings 508,535 487,503 418,174 410,488 418,057
Subordinated notes 436,298 436,179 436,095 435,979 436,021
Junior subordinated debentures 253,566 253,566 253,566 253,566 253,566
Trade date securities payable — — — 226 —
Accrued interest payable and other liabilities 1,471,110 1,285,652 1,039,490 986,092 993,537
Total liabilities 39,549,799 35,099,454 32,929,333 31,371,577 30,194,819
Shareholders’ Equity:
Preferred stock 412,500 125,000 125,000 125,000 125,000
Common stock 58,294 58,266 57,951 56,825 56,794
Surplus 1,643,864 1,652,063 1,650,278 1,574,011 1,569,969
Treasury stock (44,891 ) (44,891 ) (6,931 ) (6,799 ) (6,650 )
Retained earnings 1,921,048 1,917,558 1,899,630 1,830,165 1,747,266
Accumulated other comprehensive loss (597 ) (7,603 ) (34,678 ) (38,877 ) (45,429 )
Total shareholders’ equity 3,990,218 3,700,393 3,691,250 3,540,325 3,446,950
Total liabilities and shareholders’ equity $ 43,540,017 $ 38,799,847 $ 36,620,583 $ 34,911,902 $ 33,641,769

15

WINTRUST FINANCIAL CORPORATION AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED) Three Months Ended Six Months Ended
(In thousands, except per share data) Jun 30, 2020 Mar 31, <br>2020 Dec 31, <br>2019 Sep 30, 2019 Jun 30, 2019 Jun 30, 2020 Jun 30, 2019
Interest income
Interest and fees on loans $ 294,746 $ 301,839 $ 308,055 $ 314,277 $ 309,161 $ 596,585 $ 606,148
Mortgage loans held-for-sale 4,764 3,165 3,201 3,478 3,104 7,929 5,313
Interest bearing deposits with banks 1,310 4,768 8,971 10,326 5,206 6,078 10,506
Federal funds sold and securities purchased under resale agreements 16 86 390 310 — 102 —
Investment securities 27,105 32,467 27,611 24,758 27,721 59,572 55,677
Trading account securities 13 7 6 20 5 20 13
Federal Home Loan Bank and Federal Reserve Bank stock 1,765 1,577 1,328 1,294 1,439 3,342 2,794
Brokerage customer receivables 97 158 169 164 178 255 333
Total interest income 329,816 344,067 349,731 354,627 346,814 673,883 680,784
Interest expense
Interest on deposits 50,057 67,435 74,724 76,168 67,024 117,492 128,000
Interest on Federal Home Loan Bank advances 4,934 3,360 1,461 1,774 4,193 8,294 6,643
Interest on other borrowings 3,436 3,546 3,273 3,466 3,525 6,982 7,158
Interest on subordinated notes 5,506 5,472 5,504 5,470 2,806 10,978 4,581
Interest on junior subordinated debentures 2,752 2,811 2,890 2,897 3,064 5,563 6,214
Total interest expense 66,685 82,624 87,852 89,775 80,612 149,309 152,596
Net interest income 263,131 261,443 261,879 264,852 266,202 524,574 528,188
Provision for credit losses 135,053 52,961 7,826 10,834 24,580 188,014 35,204
Net interest income after provision for credit losses 128,078 208,482 254,053 254,018 241,622 336,560 492,984
Non-interest income
Wealth management 22,636 25,941 24,999 23,999 24,139 48,577 48,116
Mortgage banking 102,324 48,326 47,860 50,864 37,411 150,650 55,569
Service charges on deposit accounts 10,420 11,265 10,973 9,972 9,277 21,685 18,125
Gains (losses) on investment securities, net 808 (4,359 ) 587 710 864 (3,551 ) 2,228
Fees from covered call options — 2,292 1,243 — 643 2,292 2,427
Trading (losses) gains, net (634 ) (451 ) 46 11 (44 ) (1,085 ) (215 )
Operating lease income, net 11,785 11,984 12,487 12,025 11,733 23,769 22,529
Other 14,654 18,244 14,025 17,556 14,135 32,898 31,036
Total non-interest income 161,993 113,242 112,220 115,137 98,158 275,235 179,815
Non-interest expense
Salaries and employee benefits 154,156 136,762 145,941 141,024 133,732 290,918 259,455
Equipment 15,846 14,834 14,485 13,314 12,759 30,680 24,529
Operating lease equipment 9,292 9,260 9,766 8,907 8,768 18,552 17,087
Occupancy, net 16,893 17,547 17,132 14,991 15,921 34,440 32,166
Data processing 10,406 8,373 7,569 6,522 6,204 18,779 13,729
Advertising and marketing 7,704 10,862 12,517 13,375 12,845 18,566 22,703
Professional fees 7,687 6,721 7,650 8,037 6,228 14,408 11,784
Amortization of other intangible assets 2,820 2,863 3,017 2,928 2,957 5,683 5,899
FDIC insurance 7,081 4,135 1,348 148 4,127 11,216 7,703
OREO expense, net 237 (876 ) 536 1,170 1,290 (639 ) 1,922
Other 27,246 24,160 29,630 24,138 24,776 51,406 47,004
Total non-interest expense 259,368 234,641 249,591 234,554 229,607 494,009 443,981
Income before taxes 30,703 87,083 116,682 134,601 110,173 117,786 228,818
Income tax expense 9,044 24,271 30,718 35,480 28,707 33,315 58,206
Net income $ 21,659 $ 62,812 $ 85,964 $ 99,121 $ 81,466 $ 84,471 $ 170,612
Preferred stock dividends 2,050 2,050 2,050 2,050 2,050 4,100 4,100
Net income applicable to common shares $ 19,609 $ 60,762 $ 83,914 $ 97,071 $ 79,416 $ 80,371 $ 166,512
Net income per common share - Basic $ 0.34 $ 1.05 $ 1.46 $ 1.71 $ 1.40 $ 1.40 $ 2.94
Net income per common share - Diluted $ 0.34 $ 1.04 $ 1.44 $ 1.69 $ 1.38 $ 1.38 $ 2.91
Cash dividends declared per common share $ 0.28 $ 0.28 $ 0.25 $ 0.25 $ 0.25 $ 0.56 $ 0.50
Weighted average common shares outstanding 57,567 57,620 57,538 56,690 56,662 57,593 56,596
Dilutive potential common shares 414 575 874 773 699 481 700
Average common shares and dilutive common shares 57,981 58,195 58,412 57,463 57,361 58,074 57,296

16

TABLE 1: LOAN PORTFOLIO MIX AND GROWTH RATES AND COMMERCIAL REAL ESTATE BY STATE

% Growth From
(Dollars in thousands) Jun 30, 2020 Mar 31, 2020 Dec 31, 2019 Sep 30, 2019 Jun 30, 2019 Dec 31, 2019 ^(1)^ Jun 30, 2019
Balance:
Commercial
Commercial, industrial, and other $ 8,498,931 $ 8,999,728 $ 8,257,614 $ 8,180,070 $ 8,246,449 6 % 3 %
Commercial PPP loans 3,335,368 — — — — 100 100
Commercial, industrial, and other - PCD ^(2)^ 24,933 26,158 28,306 15,532 24,325 (24 ) 2
Commercial real estate
Construction and development 1,285,282 1,237,274 1,200,783 1,025,961 984,138 14 31
Non-construction 6,722,438 6,736,706 6,582,053 6,305,423 6,165,115 4 9
Commercial real estate - PCD^(2)^ 193,025 211,551 237,440 117,283 126,991 (38 ) 52
Home equity 466,596 494,655 513,066 512,303 527,370 (18 ) (12 )
Home equity - PCD ^(2)^ — — — — — — —
Residential real estate 1,410,798 1,359,971 1,336,093 1,208,706 1,107,911 11 27
Residential real estate - PCD ^(2)^ 16,631 17,418 18,128 9,960 10,267 (17 ) 62
Premium Finance receivables
Commercial insurance 3,999,774 3,465,055 3,442,027 3,449,950 3,368,423 33 19
Life insurance 5,277,126 5,084,695 4,935,320 4,654,588 4,487,921 14 18
Premium finance receivables - PCD ^(2)^ 123,676 136,944 139,282 140,908 146,557 (23 ) (16 )
Consumer and other 46,855 35,546 107,962 87,161 106,547 NM (56 )
Consumer and other - PCD ^(2)^ 1,470 1,620 2,216 2,326 2,645 (68 ) (44 )
Total loans, net of unearned income $ 31,402,903 $ 27,807,321 $ 26,800,290 $ 25,710,171 $ 25,304,659 35 % 24 %
Mix:
Commercial
Commercial, industrial, and other 28 % 32 % 31 % 32 % 33 %
Commercial PPP loans 11 — — — —
Commercial, industrial, and other - PCD ^(2)^ 0 0 0 0 0
Commercial real estate
Construction and development 4 4 4 4 4
Non-construction 21 24 25 25 24
Commercial real estate - PCD ^(2)^ 1 1 1 0 1
Home equity 1 2 2 2 2
Home equity - PCD ^(2)^ — — — — —
Residential real estate 4 5 5 5 4
Residential real estate - PCD ^(2)^ 0 0 0 0 0
Premium Finance receivables
Commercial insurance 13 13 13 13 13
Life insurance 17 18 18 18 18
Premium finance receivables - PCD ^(2)^ 0 1 1 1 1
Consumer and other 0 0 0 0 0
Consumer and other - PCD ^(2)^ 0 0 0 0 0
Total loans, net of unearned income 100 % 100 % 100 % 100 % 100 %
(1) Annualized.
--- ---
(2) As a result of the adoption of ASU 2016-13, the Company transitioned all previously classified purchase credit impaired ("PCI") loans to purchased credit deteriorated ("PCD") loans effective January 1, 2020. For prior periods presented, the previously classified PCI loans are presented with the PCD loans in their respective class.
--- ---
Jun 30, 2020 Mar 31, 2020 Dec 31, 2019 Sep 30, 2019 Jun 30, 2019
--- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
% of<br><br>Total<br><br>Balance % of<br><br>Total<br><br>Balance % of<br><br>Total<br><br>Balance % of<br><br>Total<br><br>Balance % of<br><br>Total<br><br>Balance
(Dollars in thousands) Balance Balance Balance Balance Balance
Commercial real estate - collateral location by state:
Illinois $ 6,198,486 75.6 % $ 6,171,606 75.4 % $ 6,176,353 77.0 % $ 5,654,827 75.9 % $ 5,505,290 75.7 %
Wisconsin 760,839 9.3 793,145 9.7 744,975 9.3 744,577 10.0 740,288 10.2
Total primary markets $ 6,959,325 84.9 % $ 6,964,751 85.1 % $ 6,921,328 86.3 % $ 6,399,404 85.9 % $ 6,245,578 85.9 %
Indiana 249,423 3.0 249,680 3.1 218,963 2.7 193,350 2.6 179,977 2.5
Florida 133,810 1.6 126,786 1.5 114,629 1.4 80,120 1.1 60,343 0.8
Arizona 78,135 1.0 72,214 0.9 64,022 0.8 62,657 0.8 62,607 0.9
California 81,634 1.0 63,883 0.8 64,345 0.8 67,999 0.9 68,497 0.9
Other 698,418 8.5 708,217 8.6 636,989 8.0 645,137 8.7 659,242 9.0
Total commercial real estate $ 8,200,745 100 % $ 8,185,531 100 % $ 8,020,276 100 % $ 7,448,667 100 % $ 7,276,244 100 %

17

TABLE 2: DEPOSIT PORTFOLIO MIX AND GROWTH RATES

% Growth From
(Dollars in thousands) Jun 30, 2020 Mar 31, 2020 Dec 31, 2019 Sep 30, 2019 Jun 30, 2019 Dec 31, 2019^(1)^ Jun 30, 2019
Balance:
Non-interest bearing $ 10,204,791 $ 7,556,755 $ 7,216,758 $ 7,067,960 $ 6,719,958 83 % 52 %
NOW and interest bearing demand deposits 3,440,348 3,181,159 3,093,159 2,966,098 2,788,976 23 23
Wealth management deposits ^(2)^ 4,433,020 3,936,968 3,123,063 2,795,838 3,220,256 84 38
Money market 9,288,976 8,114,659 7,854,189 7,326,899 6,460,098 37 44
Savings 3,447,352 3,282,340 3,196,698 2,934,348 2,823,904 16 22
Time certificates of deposit 4,837,387 5,389,779 5,623,271 5,619,236 5,505,623 (28 ) (12 )
Total deposits $ 35,651,874 $ 31,461,660 $ 30,107,138 $ 28,710,379 $ 27,518,815 37 % 30 %
Mix:
Non-interest bearing 29 % 24 % 24 % 25 % 24 %
NOW and interest bearing demand deposits 10 10 10 10 10
Wealth management deposits ^(2)^ 12 13 10 10 12
Money market 25 26 26 25 24
Savings 10 10 11 10 10
Time certificates of deposit 14 17 19 20 20
Total deposits 100 % 100 % 100 % 100 % 100 %
(1) Annualized.
--- ---
(2) Represents deposit balances of the Company’s subsidiary banks from brokerage customers of Wintrust Investments, CDEC, trust and asset management customers of the Company and brokerage customers from unaffiliated companies which have been placed into deposit accounts.
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TABLE 3: TIME CERTIFICATES OF DEPOSIT MATURITY/RE-PRICING ANALYSIS

As of June 30, 2020

(Dollars in thousands) CDARs &<br><br>Brokered<br><br>Certificates<br><br>of Deposit ^(1)^ MaxSafe<br><br>Certificates<br><br>of Deposit ^(1)^ Variable Rate<br><br>Certificates<br><br>of Deposit ^(2)^ Other Fixed<br><br>Rate  Certificates<br><br>of Deposit ^(1)^ Total Time<br><br>Certificates of<br><br>Deposit Weighted-Average<br><br>Rate of Maturing<br><br>Time Certificates<br><br>of Deposit ^(3)^
1-3 months $ 1,690 $ 33,600 $ 59,988 $ 651,964 $ 747,242 1.65 %
4-6 months 609 31,127 — 561,696 593,432 1.53
7-9 months — 9,547 — 802,262 811,809 1.91
10-12 months — 14,830 — 1,223,365 1,238,195 1.93
13-18 months 1,401 15,049 — 1,012,797 1,029,247 1.99
19-24 months — 4,580 — 200,078 204,658 1.19
24+ months 88 4,395 — 208,321 212,804 1.38
Total $ 3,788 $ 113,128 $ 59,988 $ 4,660,483 $ 4,837,387 1.79 %
(1) This category of certificates of deposit is shown by contractual maturity date.
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(2) This category includes variable rate certificates of deposit and savings certificates with the majority repricing on at least a monthly basis.
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(3) Weighted-average rate excludes the impact of purchase accounting fair value adjustments.
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18

TABLE 4: QUARTERLY AVERAGE BALANCES

Average Balance for three months ended,
Jun 30, Mar 31, Dec 31, Sep 30, Jun 30,
(In thousands) 2020 2020 2019 2019 2019
Interest-bearing deposits with banks and cash equivalents ^(1)^ $ 3,240,167 $ 1,418,809 $ 2,206,251 $ 1,960,898 $ 893,332
Investment securities ^(2)^ 4,309,471 4,780,709 3,909,699 3,410,090 3,653,580
FHLB and FRB stock 135,360 114,829 94,843 92,583 105,491
Liquidity management assets ^(6)^ 7,684,998 6,314,347 6,210,793 5,463,571 4,652,403
Other earning assets ^(3)(6)^ 16,917 19,166 18,353 17,809 15,719
Mortgage loans held-for-sale 705,702 403,262 381,878 379,870 281,732
Loans, net of unearned income ^(4)(6)^ 30,336,626 26,936,728 26,137,722 25,346,290 24,553,263
Total earning assets ^(6)^ 38,744,243 33,673,503 32,748,746 31,207,540 29,503,117
Allowance for loan and investment security losses ^(7)^ (222,485 ) (176,291 ) (167,759 ) (168,423 ) (164,231 )
Cash and due from banks 352,423 321,982 316,631 297,475 273,679
Other assets 3,168,548 2,806,296 2,747,572 2,618,000 2,443,204
Total assets $ 42,042,729 $ 36,625,490 $ 35,645,190 $ 33,954,592 $ 32,055,769
NOW and interest bearing demand deposits $ 3,323,124 $ 3,113,733 $ 3,016,991 $ 2,912,961 $ 2,878,021
Wealth management deposits 4,380,996 2,838,719 2,934,292 2,888,817 2,605,690
Money market accounts 8,727,966 7,990,775 7,647,635 6,956,755 6,095,285
Savings accounts 3,394,480 3,189,835 3,028,763 2,837,039 2,752,828
Time deposits 5,104,701 5,526,407 5,682,449 5,590,228 5,322,384
Interest-bearing deposits 24,931,267 22,659,469 22,310,130 21,185,800 19,654,208
Federal Home Loan Bank advances 1,214,375 951,613 596,594 574,833 869,812
Other borrowings 493,350 469,577 415,092 416,300 419,064
Subordinated notes 436,226 436,119 436,025 436,041 220,771
Junior subordinated debentures 253,566 253,566 253,566 253,566 253,566
Total interest-bearing liabilities 27,328,784 24,770,344 24,011,407 22,866,540 21,417,421
Non-interest bearing deposits 9,607,528 7,235,177 7,128,166 6,776,786 6,487,627
Other liabilities 1,197,571 909,800 883,433 814,552 736,381
Equity 3,908,846 3,710,169 3,622,184 3,496,714 3,414,340
Total liabilities and shareholders’ equity $ 42,042,729 $ 36,625,490 $ 35,645,190 $ 33,954,592 $ 32,055,769
Net free funds/contribution ^(5)^ $ 11,415,459 $ 8,903,159 $ 8,737,339 $ 8,341,000 $ 8,085,696
(1) Includes interest-bearing deposits from banks, federal funds sold and securities purchased under resale agreements.
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(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.
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(3) Other earning assets include brokerage customer receivables and trading account securities.
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(4) Loans, net of unearned income, include non-accrual loans.
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(5) 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.
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(6) See "Supplemental Non-GAAP Financial Measures/Ratios" at Table 18 for additional information on this performance measure/ratio.
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(7) Effective January 1, 2020 this includes the allowance for investment security losses as a result of the adoption of ASU 2016-13, Financial Instruments - Credit Losses.
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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) 2020 2020 2019 2019 2019
Interest income:
Interest-bearing deposits with banks and cash equivalents $ 1,326 $ 4,854 $ 9,361 $ 10,636 $ 5,206
Investment securities 27,643 33,018 28,184 25,332 28,290
FHLB and FRB stock 1,765 1,577 1,328 1,294 1,439
Liquidity management assets ^(2)^ 30,734 39,449 38,873 37,262 34,935
Other earning assets ^(2)^ 113 167 176 189 184
Mortgage loans held-for-sale 4,764 3,165 3,201 3,478 3,104
Loans, net of unearned income ^(2)^ 295,322 302,699 308,947 315,255 310,191
Total interest income $ 330,933 $ 345,480 $ 351,197 $ 356,184 $ 348,414
Interest expense:
NOW and interest bearing demand deposits $ 1,561 $ 3,665 $ 4,622 $ 5,291 $ 5,553
Wealth management deposits 7,244 6,935 7,867 9,163 7,091
Money market accounts 13,140 22,363 25,603 25,426 21,451
Savings accounts 3,840 5,790 6,145 5,622 4,959
Time deposits 24,272 28,682 30,487 30,666 27,970
Interest-bearing deposits 50,057 67,435 74,724 76,168 67,024
Federal Home Loan Bank advances 4,934 3,360 1,461 1,774 4,193
Other borrowings 3,436 3,546 3,273 3,466 3,525
Subordinated notes 5,506 5,472 5,504 5,470 2,806
Junior subordinated debentures 2,752 2,811 2,890 2,897 3,064
Total interest expense $ 66,685 $ 82,624 $ 87,852 $ 89,775 $ 80,612
Less: Fully taxable-equivalent adjustment (1,117 ) (1,413 ) (1,466 ) (1,557 ) (1,600 )
Net interest income^^(GAAP) ^(1)^ 263,131 261,443 261,879 264,852 266,202
Fully taxable-equivalent adjustment 1,117 1,413 1,466 1,557 1,600
Net interest income, fully taxable-equivalent (non-GAAP) ^(1)^ $ 264,248 $ 262,856 $ 263,345 $ 266,409 $ 267,802
(1) See "Supplemental Non-GAAP Financial Measures/Ratios" at Table 18 for additional information on this performance measure/ratio.
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(2) 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.
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20

TABLE 6: QUARTERLY NET INTEREST MARGIN

Net Interest Margin for three months ended,
Jun 30, 2020 Mar 31, 2020 Dec 31, 2019 Sep 30, 2019 Jun 30, <br>2019
Yield earned on:
Interest-bearing deposits with banks and cash equivalents 0.16 % 1.38 % 1.68 % 2.15 % 2.34 %
Investment securities 2.58 2.78 2.86 2.95 3.11
FHLB and FRB stock 5.24 5.52 5.55 5.55 5.47
Liquidity management assets 1.61 2.51 2.48 2.71 3.01
Other earning assets 2.71 3.50 3.83 4.20 4.68
Mortgage loans held-for-sale 2.72 3.16 3.33 3.63 4.42
Loans, net of unearned income 3.92 4.52 4.69 4.93 5.07
Total earning assets 3.44 % 4.13 % 4.25 % 4.53 % 4.74 %
Rate paid on:
NOW and interest bearing demand deposits 0.19 % 0.47 % 0.61 % 0.72 % 0.77 %
Wealth management deposits 0.67 0.98 1.06 1.26 1.09
Money market accounts 0.61 1.13 1.33 1.45 1.41
Savings accounts 0.45 0.73 0.80 0.79 0.72
Time deposits 1.91 2.09 2.13 2.18 2.11
Interest-bearing deposits 0.81 1.20 1.33 1.43 1.37
Federal Home Loan Bank advances 1.63 1.42 0.97 1.22 1.93
Other borrowings 2.80 3.04 3.13 3.30 3.37
Subordinated notes 5.05 5.02 5.05 5.02 5.08
Junior subordinated debentures 4.29 4.39 4.46 4.47 4.78
Total interest-bearing liabilities 0.98 % 1.34 % 1.45 % 1.56 % 1.51 %
Interest rate spread^(1)(3)^ 2.46 % 2.79 % 2.80 % 2.97 % 3.23 %
Less: Fully taxable-equivalent adjustment (0.01 ) (0.02 ) (0.02 ) (0.02 ) (0.02 )
Net free funds/contribution^(2)^ 0.28 0.35 0.39 0.42 0.41
Net interest margin (GAAP)^(3)^ 2.73 % 3.12 % 3.17 % 3.37 % 3.62 %
Fully taxable-equivalent adjustment 0.01 0.02 0.02 0.02 0.02
Net interest margin, fully taxable-equivalent (non-GAAP)^(3)^ 2.74 % 3.14 % 3.19 % 3.39 % 3.64 %
(1) Interest rate spread is the difference between the yield earned on earning assets and the rate paid on interest-bearing liabilities.
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(2) 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.
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(3) See "Supplemental Non-GAAP Financial Measures/Ratios" at Table 18 for additional information on this performance measure/ratio.
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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, 2020 Jun 30, <br>2019 Jun 30, 2020 Jun 30, 2019 Jun 30, 2020 Jun 30, 2019
Interest-bearing deposits with banks and cash equivalents ^(1)^ $ 2,329,488 $ 895,497 $ 6,180 $ 10,506 0.53 % 2.37 %
Investment securities ^(2)^ 4,545,090 3,642,142 60,661 56,811 2.68 3.15
FHLB and FRB stock 125,094 100,187 3,342 2,794 5.37 5.62
Liquidity management assets ^(3)(8)^ $ 6,999,672 $ 4,637,826 $ 70,183 $ 70,111 2.02 % 3.05 %
Other earning assets ^(3)(4)(8)^ 18,041 14,661 280 349 3.13 4.79
Mortgage loans held-for-sale 554,482 235,220 7,929 5,313 2.88 4.55
Loans, net of unearned income ^(3)(5)(8)^ 28,636,678 24,218,946 598,021 608,212 4.20 5.06
Total earning assets ^(8)^ $ 36,208,873 $ 29,106,653 $ 676,413 $ 683,985 3.76 % 4.74 %
Allowance for loan losses (199,388 ) (161,024 )
Cash and due from banks 337,202 278,324
Other assets 2,987,422 2,414,336
Total assets $ 39,334,109 $ 31,638,289
NOW and interest bearing demand deposits $ 3,218,429 $ 2,840,886 $ 5,227 $ 10,166 0.33 % 0.72 %
Wealth management deposits 3,609,857 2,609,839 14,179 14,091 0.79 1.09
Money market accounts 8,359,370 6,005,902 35,503 40,911 0.85 1.37
Savings accounts 3,292,158 2,734,228 9,630 9,208 0.59 0.68
Time deposits 5,315,554 5,295,241 52,953 53,624 2.00 2.04
Interest-bearing deposits $ 23,795,368 $ 19,486,096 $ 117,492 $ 128,000 0.99 % 1.32 %
Federal Home Loan Bank advances 1,082,994 732,834 8,294 6,643 1.54 1.83
Other borrowings 481,463 442,189 6,982 7,158 2.92 3.26
Subordinated notes 436,173 180,219 10,978 4,581 5.03 5.08
Junior subordinated debentures 253,566 253,566 5,563 6,214 4.34 4.88
Total interest-bearing liabilities $ 26,049,564 $ 21,094,904 $ 149,309 $ 152,596 1.15 % 1.46 %
Non-interest bearing deposits 8,421,353 6,466,122
Other liabilities 1,053,684 715,263
Equity 3,809,508 3,362,000
Total liabilities and shareholders’ equity $ 39,334,109 $ 31,638,289
Interest rate spread ^(6)(8)^ 2.61 % 3.28 %
Less: Fully taxable-equivalent adjustment (2,530 ) (3,201 ) (0.02 ) (0.02 )
Net free funds/contribution ^(7)^ $ 10,159,309 $ 8,011,749 0.32 0.40
Net interest income/ margin^^(GAAP)^(8)^ $ 524,574 $ 528,188 2.91 % 3.66 %
Fully taxable-equivalent adjustment 2,530 3,201 0.02 0.02
Net interest income/ margin, fully taxable-equivalent (non-GAAP) ^(8)^ $ 527,104 $ 531,389 2.93 % 3.68 %
(1) Includes interest-bearing deposits from banks, federal funds sold and securities purchased under resale agreements.
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(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.
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(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.
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(4) Other earning assets include brokerage customer receivables and trading account securities.
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(5) Loans, net of unearned income, include non-accrual loans.
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(6) Interest rate spread is the difference between the yield earned on earning assets and the rate paid on interest-bearing liabilities.
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(7) 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.
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(8) See “Supplemental Non-GAAP Financial Measures/Ratios” at Table 18 for additional information on this performance ratio.
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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 <br>Basis <br>Points +100<br> Basis<br> Points -100 <br>Basis<br> Points
Jun 30, 2020 25.9 % 12.6 % (8.3 )%
Mar 31, 2020 22.5 10.6 (9.4 )
Dec 31, 2019 18.6 9.7 (10.9 )
Sep 30, 2019 20.7 10.5 (11.9 )
Jun 30, 2019 17.3 8.9 (10.2 )
Ramp Scenario +200<br>Basis<br>Points +100<br>Basis<br>Points -100<br>Basis<br>Points
--- --- --- --- --- --- ---
Jun 30, 2020 13.0 % 6.7 % (3.2 )%
Mar 31, 2020 7.7 3.7 (3.8 )
Dec 31, 2019 9.3 4.8 (5.0 )
Sep 30, 2019 10.1 5.2 (5.6 )
Jun 30, 2019 8.3 4.3 (4.6 )

23

TABLE 9: MATURITIES AND SENSITIVITIES TO CHANGES IN INTEREST RATES

Loans repricing or maturity period
As of June 30, 2020 One year or less From one to five years Over five years
(In thousands) Total
Commercial
Fixed rate $ 270,078 $ 5,117,468 $ 822,542 $ 6,210,088
Variable rate 5,628,606 20,411 127 5,649,144
Total commercial $ 5,898,684 $ 5,137,879 $ 822,669 $ 11,859,232
Commercial real estate
Fixed rate 542,353 2,163,918 431,543 3,137,814
Variable rate 5,021,539 41,392 — 5,062,931
Total commercial real estate $ 5,563,892 $ 2,205,310 $ 431,543 $ 8,200,745
Home equity
Fixed rate 23,244 4,807 27 28,078
Variable rate 438,518 — — 438,518
Total home equity $ 461,762 $ 4,807 $ 27 $ 466,596
Residential real estate
Fixed rate 38,039 11,576 487,530 537,145
Variable rate 60,409 341,479 488,396 890,284
Total residential real estate $ 98,448 $ 353,055 $ 975,926 $ 1,427,429
Premium finance receivables - commercial
Fixed rate 3,909,677 90,096 1 3,999,774
Variable rate — — — —
Total premium finance receivables - commercial $ 3,909,677 $ 90,096 $ 1 $ 3,999,774
Premium finance receivables - life insurance
Fixed rate 43,954 153,947 21,576 219,477
Variable rate 5,181,325 — — 5,181,325
Total premium finance receivables - life insurance $ 5,225,279 $ 153,947 $ 21,576 $ 5,400,802
Consumer and other
Fixed rate 22,190 6,456 1,583 30,229
Variable rate 18,096 — — 18,096
Total consumer and other $ 40,286 $ 6,456 $ 1,583 $ 48,325
Total per category
Fixed rate 4,849,535 7,548,268 1,764,802 14,162,605
Variable rate 16,348,493 403,282 488,523 17,240,298
Total loans, net of unearned income $ 21,198,028 $ 7,951,550 $ 2,253,325 $ 31,402,903
Variable Rate Loan Pricing by Index:
Prime $ 2,164,995
One- month LIBOR 8,661,027
Three- month LIBOR 301,327
Twelve- month LIBOR 5,846,946
Other 266,003
Total variable rate $ 17,240,298

24

interestratetrend.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 $8.7 billion of variable rate loans tied to one-month LIBOR and $5.8 billion of variable rate loans tied to twelve-month LIBOR. The above chart shows:

Basis Points (bps) Change in
Prime 1-month<br><br>LIBOR 12-month<br><br>LIBOR
Second Quarter 2020 0 bps -83 bps -45 bps
First Quarter 2020 -150 -77 -100
Fourth Quarter 2019 -25 -26 -3
Third Quarter 2019 -50 -38 -15
Second Quarter 2019 0 -9 -53

25

TABLE 10: ALLOWANCE FOR CREDIT LOSSES

Three Months Ended Six Months Ended
Jun 30, Mar 31, Dec 31, Sep 30, Jun 30, Jun 30, Jun 30,
(Dollars in thousands) 2020 2020 2019 2019 2019 2020 2019
Allowance for credit losses at beginning of period $ 253,482 $ 158,461 $ 163,273 $ 161,901 $ 159,622 $ 158,461 $ 154,164
Cumulative effect adjustment from the adoption of ASU 2016-13 — 47,418 — — — 47,418 —
Provision for credit losses 135,053 52,961 7,826 10,834 24,580 188,014 35,204
Other adjustments 42 (73 ) 30 (13 ) (11 ) (31 ) (38 )
Charge-offs:
Commercial 5,686 2,153 11,222 6,775 17,380 7,839 17,883
Commercial real estate 7,087 85 533 809 326 7,172 4,060
Home equity 239 1,001 1,330 1,594 690 1,240 778
Residential real estate 208 356 483 25 287 564 290
Premium finance receivables 3,434 3,184 3,817 1,866 5,009 6,618 7,219
Consumer and other 99 128 167 117 136 227 238
PCD^(1)^ 222 530 — — — 752 —
Total charge-offs 16,975 7,437 17,552 11,186 23,828 24,412 30,468
Recoveries:
Commercial 86 356 1,871 367 289 442 607
Commercial real estate 307 79 1,404 385 247 386 727
Home equity 36 294 166 183 68 330 130
Residential real estate 30 60 50 203 140 90 169
Premium finance receivables 833 1,110 1,350 563 734 1,943 1,290
Consumer and other 58 39 43 36 60 97 116
PCD^(1)^ 222 214 — — — 436 —
Total recoveries 1,572 2,152 4,884 1,737 1,538 3,724 3,039
Net charge-offs (15,403 ) (5,285 ) (12,668 ) (9,449 ) (22,290 ) (20,688 ) (27,429 )
Allowance for credit losses at period end $ 373,174 $ 253,482 $ 158,461 $ 163,273 $ 161,901 $ 373,174 $ 161,901
Annualized net charge-offs by category as a percentage of its own respective category’s average:
Commercial 0.20 % 0.09 % 0.46 % 0.31 % 0.85 % 0.15 % 0.44 %
Commercial real estate 0.34 0.00 (0.04 ) 0.02 0.00 0.17 0.10
Home equity 0.17 0.57 0.89 1.08 0.47 0.37 0.25
Residential real estate 0.06 0.10 0.14 (0.07 ) 0.06 0.08 0.03
Premium finance receivables 0.12 0.10 0.28 0.15 0.55 0.11 0.16
Consumer and other 0.22 0.59 0.41 0.27 0.30 0.28 0.23
PCD^(1)^ 0.00 0.32 — — — 0.25 —
Total loans, net of unearned income 0.20 % 0.08 % 0.19 % 0.15 % 0.36 % 0.15 % 0.23 %
Net charge-offs as a percentage of the provision for credit losses 11.41 % 9.98 % 161.87 % 87.22 % 90.68 % 11.00 % 77.92 %
Loans at period-end $ 31,402,903 $ 27,807,321 $ 26,800,290 $ 25,710,171 $ 25,304,659
Allowance for loan losses as a percentage of loans at period end 1.00 % 0.78 % 0.59 % 0.63 % 0.63 %
Allowance for loan and unfunded lending-related commitment losses as a percentage of loans at period end 1.19 0.91 0.59 0.64 0.64
Allowance for loan and unfunded lending-related commitment losses as a percentage of loans at period end, excluding PPP loans 1.33 0.91 0.59 0.64 0.64
(1) As a result of the adoption of ASU 2016-13, the Company transitioned all previously classified PCI loans to PCD loans effective January 1, 2020. For prior periods presented, the previously classified PCI charge-offs and recoveries are presented with the non-PCI charge-offs and recoveries in their respective class.
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26

TABLE 11: ALLOWANCE AND PROVISON FOR CREDIT LOSSES BY COMPONENT

Three Months Ended Six Months Ended
Jun 30, Mar 31, Dec 31, Sep 30, Jun 30, Jun 30, Jun 30,
(In thousands) 2020 2020 2019 2019 2019 2020 2019
Provision for loan losses $ 112,822 $ 50,396 $ 7,704 $ 10,804 $ 24,510 $ 163,218 $ 35,118
Provision for unfunded lending-related commitments losses 22,236 2,569 122 30 70 24,805 86
Provision for held-to-maturity securities losses (5 ) (4 ) — — — (9 ) —
Provision for credit losses $ 135,053 $ 52,961 $ 7,826 $ 10,834 $ 24,580 $ 188,014 $ 35,204
Allowance for loan losses $ 313,510 $ 216,050 $ 156,828 $ 161,763 $ 160,421
Allowance for unfunded lending-related commitments losses 59,599 37,362 1,633 1,510 1,480
Allowance for loan losses and unfunded lending-related commitments losses 373,109 253,412 158,461 163,273 161,901
Allowance for held-to-maturity securities losses 65 70 — — —
Allowance for credit losses $ 373,174 $ 253,482 $ 158,461 $ 163,273 $ 161,901

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 core, niche and consumer and purchased loan portfolios, as of June 30, 2020, March 31, 2020, and December 31, 2019.

As of June 30, 2020 As of March 31, 2020 As of December 31, 2019
(Dollars in thousands) Recorded<br><br>Investment Calculated<br><br>Allowance % of its<br><br>category’s balance Recorded<br>Investment Calculated<br>Allowance % of its<br>category’s balance Recorded<br>Investment Calculated<br>Allowance % of its<br>category’s balance
Commercial: ^(1)^
Commercial, industrial and other, excluding PPP loans $ 8,396,485 $ 130,585 1.56 % $ 8,888,342 $ 104,754 1.18 % $ 8,121,584 $ 64,829 0.80 %
Commercial real estate: ^(1)^
Construction and development 1,193,735 67,333 5.64 1,113,863 31,687 2.84 1,075,545 16,418 1.53
Non-construction 6,397,847 108,613 1.70 6,388,142 68,914 1.08 6,199,042 51,935 0.84
Home equity ^(1)^ 427,668 11,596 2.71 451,804 11,844 2.62 469,498 3,860 0.82
Residential real estate ^(1)^ 1,338,801 11,200 0.84 1,274,351 11,621 0.91 1,246,829 9,736 0.78
Total core loan portfolio $ 17,754,536 $ 329,327 1.85 % $ 18,116,502 $ 228,820 1.26 % $ 17,112,498 $ 146,778 0.86 %
Commercial PPP loans $ 3,335,368 $ 4 0.00 % $ — $ — — % $ — $ — — %
Premium finance receivables ^(1)^
Commercial insurance loans 3,999,774 17,122 0.43 3,465,055 7,426 0.21 3,442,027 8,132 0.24
Life insurance loans 5,277,126 470 0.01 5,084,695 454 0.01 4,935,321 1,515 0.03
Consumer and other^(1)^ 45,474 556 1.22 34,111 331 0.97 107,053 1,704 1.59
Total niche and consumer loan portfolio $ 12,657,742 $ 18,152 0.14 % $ 8,583,861 $ 8,211 0.10 % $ 8,484,401 $ 11,351 0.13 %
Purchased commercial ^(2)^ $ 127,379 $ 3,008 2.36 % $ 137,544 $ 2,592 1.88 % $ 164,336 $ 91 0.06 %
Purchased commercial real estate ^(2)^ 609,163 21,180 3.48 683,526 12,195 1.78 745,689 158 0.02
Purchased home equity ^(2)^ 38,928 593 1.52 42,851 550 1.28 43,568 18 0.04
Purchased residential real estate^(2)^ 88,628 715 0.81 103,038 929 0.90 107,392 64 0.06
Purchased life insurance loans ^(2)^ 123,676 — — 136,944 — — 139,281 — —
Purchased consumer and other ^(2)^ 2,851 134 4.70 3,055 115 3.76 3,125 1 0.03
Total purchased loan portfolio $ 990,625 $ 25,630 2.59 % $ 1,106,958 $ 16,381 1.48 % $ 1,203,391 $ 332 0.03 %
Total loans, net of unearned income $ 31,402,903 $ 373,109 1.19 % $ 27,807,321 $ 253,412 0.91 % $ 26,800,290 $ 158,461 0.59 %
Total loans, net of unearned income, excluding PPP loans $ 28,067,535 $ 373,105 1.33 % $ 27,807,321 $ 253,412 0.91 % $ 26,800,290 $ 158,461 0.59 %
(1) As a result of the adoption of ASU 2016-13, the Company transitioned all previously classified PCI loans to PCD loans effective January 1, 2020. Excludes PCD loans.
--- ---
(2) Includes PCD loans.
--- ---

28

TABLE 13: LOAN PORTFOLIO AGING

As of June 30, 2020 March 31, 2020
(Dollars in thousands) Non-PCD PCD^(1)^ Total Loans Non-PCD PCD^(1)^ Total Loans
Loan Balances:
Commercial
Nonaccrual $ 39,589 $ 3,293 $ 42,882 $ 47,661 $ 2,255 $ 49,916
90+ days and still accruing 1,374 — 1,374 3 1,238 1,241
60-89 days past due 8,107 845 8,952 8,541 332 8,873
30-59 days past due 22,421 1,299 23,720 86,129 — 86,129
Current 11,762,808 19,496 11,782,304 8,857,394 22,333 8,879,727
Total Commercial $ 11,834,299 $ 24,933 $ 11,859,232 $ 8,999,728 $ 26,158 $ 9,025,886
Commercial real estate
Nonaccrual $ 43,334 $ 21,223 $ 64,557 $ 36,904 $ 25,926 $ 62,830
90+ days and still accruing — — — 516 — 516
60-89 days past due 22,402 4,078 26,480 7,415 2,797 10,212
30-59 days past due 56,501 19,027 75,528 65,578 9,490 75,068
Current 7,885,483 148,697 8,034,180 7,863,567 173,338 8,036,905
Total Commercial real estate $ 8,007,720 $ 193,025 $ 8,200,745 $ 7,973,980 $ 211,551 $ 8,185,531
Home equity
Nonaccrual $ 7,261 $ — $ 7,261 $ 7,243 $ — $ 7,243
90+ days and still accruing — — — — — —
60-89 days past due — — — 214 — 214
30-59 days past due 1,296 — 1,296 2,096 — 2,096
Current 458,039 — 458,039 485,102 — 485,102
Total Home equity $ 466,596 $ — $ 466,596 $ 494,655 $ — $ 494,655
Residential real estate
Nonaccrual $ 13,941 $ 5,588 $ 19,529 $ 13,132 $ 5,833 $ 18,965
90+ days and still accruing — — — 605 — 605
60-89 days past due 1,318 188 1,506 345 — 345
30-59 days past due 3,595 805 4,400 26,437 2,546 28,983
Current 1,391,944 10,050 1,401,994 1,319,452 9,039 1,328,491
Total Residential real estate $ 1,410,798 $ 16,631 $ 1,427,429 $ 1,359,971 $ 17,418 $ 1,377,389
Premium finance receivables
Nonaccrual $ 16,460 $ — $ 16,460 $ 21,058 $ — $ 21,058
90+ days and still accruing 35,638 — 35,638 16,505 — 16,505
60-89 days past due 42,353 — 42,353 12,730 — 12,730
30-59 days past due 61,160 — 61,160 70,185 — 70,185
Current 9,121,289 123,676 9,244,965 8,429,272 136,944 8,566,216
Total Premium finance receivables $ 9,276,900 $ 123,676 $ 9,400,576 $ 8,549,750 $ 136,944 $ 8,686,694
Consumer and other
Nonaccrual $ 255 $ 172 $ 427 $ 232 $ 171 $ 403
90+ days and still accruing 156 — 156 78 — 78
60-89 days past due 4 — 4 607 18 625
30-59 days past due 281 — 281 188 19 207
Current 46,159 1,298 47,457 34,441 1,412 35,853
Total Consumer and other $ 46,855 $ 1,470 $ 48,325 $ 35,546 $ 1,620 $ 37,166
Total loans, net of unearned income
Nonaccrual $ 120,840 $ 30,276 $ 151,116 $ 126,230 $ 34,185 $ 160,415
90+ days and still accruing 37,168 — 37,168 17,707 1,238 18,945
60-89 days past due 74,184 5,111 79,295 29,852 3,147 32,999
30-59 days past due 145,254 21,131 166,385 250,613 12,055 262,668
Current 30,665,722 303,217 30,968,939 26,989,228 343,066 27,332,294
Total loans, net of unearned income $ 31,043,168 $ 359,735 $ 31,402,903 $ 27,413,630 $ 393,691 $ 27,807,321
(1) As a result of the adoption of ASU 2016-13, the Company transitioned all previously classified PCI loans to PCD loans effective January 1, 2020. For prior periods presented, the previously classified PCI loans are presented with the PCD loans in their respective class.
--- ---

29

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

Jun 30, Mar 31, Dec 31, Sep 30, Jun 30,
(Dollars in thousands) 2020 2020 2019 2019 2019
Loans past due greater than 90 days and still accruing ^(1)^: Non-PCD PCD^(2)^ Non-PCD PCD^(2)^
Commercial $ 1,374 $ — $ 3 1,238 $ — $ — $ 488
Commercial real estate — — 516 — — — —
Home equity — — — — — — —
Residential real estate — — 605 — — — —
Premium finance receivables 35,638 — 16,505 — 11,517 10,612 6,940
Consumer and other 156 — 78 — 163 53 172
Total loans past due greater than 90 days and still accruing 37,168 — 17,707 1,238 11,680 10,665 7,600
Non-accrual loans:
Commercial 39,589 3,293 47,661 2,255 37,224 43,931 47,604
Commercial real estate 43,334 21,223 36,904 25,926 26,113 21,557 20,875
Home equity 7,261 — 7,243 — 7,363 7,920 8,489
Residential real estate 13,941 5,588 13,132 5,833 13,797 13,447 14,236
Premium finance receivables 16,460 — 21,058 — 21,180 16,540 14,423
Consumer and other 255 172 232 171 231 224 220
Total non-accrual loans 120,840 30,276 126,230 34,185 105,908 103,619 105,847
Total non-performing loans:
Commercial 40,963 3,293 47,664 3,493 37,224 43,931 48,092
Commercial real estate 43,334 21,223 37,420 25,926 26,113 21,557 20,875
Home equity 7,261 — 7,243 — 7,363 7,920 8,489
Residential real estate 13,941 5,588 13,737 5,833 13,797 13,447 14,236
Premium finance receivables 52,098 — 37,563 — 32,697 27,152 21,363
Consumer and other 411 172 310 171 394 277 392
Total non-performing loans $ 158,008 $ 30,276 $ 143,937 35,423 $ 117,588 $ 114,284 $ 113,447
Other real estate owned 2,409 — 2,701 — 5,208 8,584 9,920
Other real estate owned - from acquisitions 7,788 — 8,325 — 9,963 8,898 9,917
Other repossessed assets — — — — 4 257 263
Total non-performing assets $ 168,205 $ 30,276 $ 154,963 35,423 $ 132,763 $ 132,023 $ 133,547
Accruing TDRs not included within non-performing assets $ 47,750 $ 859 $ 46,995 $ 54 $ 36,725 $ 45,178 $ 45,862
Total non-performing loans by category as a percent of its own respective category’s period-end balance:
Commercial 0.35 % 13.21 % 0.53 % 13.35 % 0.45 % 0.54 % 0.58 %
Commercial real estate 0.54 10.99 0.47 12.26 0.33 0.29 0.29
Home equity 1.56 — 1.46 — 1.44 1.55 1.61
Residential real estate 0.99 33.60 1.01 33.49 1.02 1.10 1.27
Premium finance receivables 0.56 — 0.44 — 0.39 0.34 0.27
Consumer and other 0.88 11.70 0.87 10.56 0.36 0.31 0.36
Total loans, net of unearned income 0.51 % 8.42 % 0.53 % 9.00 % 0.44 % 0.44 % 0.45 %
Total non-performing assets as a percentage of total assets 0.46 % 0.49 % 0.36 % 0.38 % 0.40 %
Allowance for loan losses as a percentage of total non-performing loans 166.51 % 120.46 % 133.37 % 141.54 % 141.41 %
(1) As of June 30, 2020, March 31, 2020, December 31, 2019, September 30, 2019, and June 30, 2019, no TDRs were past due greater than 90 days and still accruing interest.
--- ---
(2) As a result of the adoption of ASU 2016-13, the Company transitioned all previously classified PCI loans to PCD loans effective January 1, 2020.
--- ---

30

Non-performing Loans Rollforward

Three Months Ended Six Months Ended
Jun 30, Mar 31, Dec 31, Sep 30, Jun 30, Jun 30, Jun 30,
(In thousands) 2020 2020 2019 2019 2019 2020 2019
Non-PCD PCD^(2)^ Non-PCD PCD^(2)^
Balance at beginning of period $ 143,937 $ 35,423 $ 117,588 $ — $ 114,284 $ 113,447 $ 117,586 $ 117,588 $ 113,234
Additions from becoming non-performing in the respective period 18,547 2,256 30,390 1,805 30,977 20,781 20,567 52,998 44,597
Additions from the adoption of ASU 2016-13 — — — 37,285 — — — 37,285 —
Return to performing status (1,328 ) (1,238 ) (317 ) (169 ) (243 ) (407 ) (47 ) (3,052 ) (14,124 )
Payments received (5,408 ) (5,793 ) (4,451 ) (3,498 ) (19,380 ) (16,326 ) (5,438 ) (19,150 ) (9,462 )
Transfer to OREO and other repossessed assets — — (1,297 ) — — (1,493 ) (1,486 ) (1,297 ) (1,568 )
Charge-offs (12,512 ) (372 ) (2,551 ) — (11,798 ) (6,984 ) (16,817 ) (15,435 ) (20,809 )
Net change for niche loans ^(1)^ 14,772 — 4,575 — 3,748 5,266 (918 ) 19,347 1,579
Balance at end of period $ 158,008 $ 30,276 $ 143,937 35,423 $ 117,588 $ 114,284 $ 113,447 $ 188,284 $ 113,447
(1) This includes activity for premium finance receivables and indirect consumer loans.
--- ---
(2) As a result of the adoption of ASU 2016-13, the Company transitioned all previously classified PCI loans to PCD loans effective January 1, 2020.
--- ---

TDRs

Jun 30, Mar 31, Dec 31, Sep 30, Jun 30,
(In thousands) 2020 2020 2019 2019 2019
Accruing TDRs:
Commercial $ 5,338 $ 6,500 $ 4,905 $ 14,099 $ 15,923
Commercial real estate 19,106 18,043 9,754 10,370 12,646
Residential real estate and other 24,165 22,506 22,066 20,709 17,293
Total accrual $ 48,609 $ 47,049 $ 36,725 $ 45,178 $ 45,862
Non-accrual TDRs: ^(1)^
Commercial $ 20,788 $ 17,206 $ 13,834 $ 7,451 $ 21,850
Commercial real estate 8,545 14,420 7,119 7,673 2,854
Residential real estate and other 5,606 4,962 6,158 6,006 5,435
Total non-accrual $ 34,939 $ 36,588 $ 27,111 $ 21,130 $ 30,139
Total TDRs:
Commercial $ 26,126 $ 23,706 $ 18,739 $ 21,550 $ 37,773
Commercial real estate 27,651 32,463 16,873 18,043 15,500
Residential real estate and other 29,771 27,468 28,224 26,715 22,728
Total TDRs $ 83,548 $ 83,637 $ 63,836 $ 66,308 $ 76,001
(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) 2020 2020 2019 2019 2019
Balance at beginning of period $ 11,026 $ 15,171 $ 17,482 $ 19,837 $ 21,520
Disposals/resolved (612 ) (4,793 ) (4,860 ) (4,501 ) (2,397 )
Transfers in at fair value, less costs to sell — 954 936 3,008 1,746
Additions from acquisition — — 2,179 — —
Fair value adjustments (217 ) (306 ) (566 ) (862 ) (1,032 )
Balance at end of period $ 10,197 $ 11,026 $ 15,171 $ 17,482 $ 19,837
Period End
Jun 30, Mar 31, Dec 31, Sep 30, Jun 30,
Balance by Property Type: 2020 2020 2019 2019 2019
Residential real estate $ 1,382 $ 1,684 $ 1,016 $ 1,250 $ 1,312
Residential real estate development — — 810 1,282 1,282
Commercial real estate 8,815 9,342 13,345 14,950 17,243
Total $ 10,197 $ 11,026 $ 15,171 $ 17,482 $ 19,837

32

TABLE 15: NON-INTEREST INCOME

Three Months Ended Q2 2020 compared to Q1 2020 Q2 2020 compared to Q2 2019
Jun 30, Mar 31, Dec 31, Sep 30, Jun 30,
(Dollars in thousands) 2020 2020 2019 2019 2019 Change % Change Change % Change
Brokerage $ 4,147 $ 5,281 $ 4,859 $ 4,686 $ 4,764 ) (21 )% ) (13 )%
Trust and asset management 18,489 20,660 20,140 19,313 19,375 (2,171 ) (11 ) (886 ) (5 )
Total wealth management 22,636 25,941 24,999 23,999 24,139 (3,305 ) (13 ) (1,503 ) (6 )
Mortgage banking 102,324 48,326 47,860 50,864 37,411 53,998 112 64,913 174
Service charges on deposit accounts 10,420 11,265 10,973 9,972 9,277 (845 ) (8 ) 1,143 12
Gains (losses) on investment securities, net 808 (4,359 ) 587 710 864 5,167 NM (56 ) (6 )
Fees from covered call options — 2,292 1,243 — 643 (2,292 ) (100 ) (643 ) (100 )
Trading (losses) gains, net (634 ) (451 ) 46 11 (44 ) (183 ) (41 ) (590 ) NM
Operating lease income, net 11,785 11,984 12,487 12,025 11,733 (199 ) (2 ) 52 —
Other:
Interest rate swap fees 5,693 6,066 2,206 4,811 3,224 (373 ) (6 ) 2,469 77
BOLI 1,950 (1,284 ) 1,377 830 1,149 3,234 NM 801 70
Administrative services 933 1,112 1,072 1,086 1,009 (179 ) (16 ) (76 ) (8 )
Foreign currency remeasurement (losses) gains (208 ) (151 ) 261 (55 ) 113 (57 ) (38 ) (321 ) NM
Early pay-offs of capital leases 275 74 24 6 — 201 272 275 NM
Miscellaneous 6,011 12,427 9,085 10,878 8,640 (6,416 ) (52 ) (2,629 ) (30 )
Total Other 14,654 18,244 14,025 17,556 14,135 (3,590 ) (20 ) 519 4
Total Non-Interest Income $ 161,993 $ 113,242 $ 112,220 $ 115,137 $ 98,158 43 % 65 %

All values are in US Dollars.

NM - Not meaningful.

Six Months Ended
Jun 30, Jun 30, %
(Dollars in thousands) 2020 2019 Change Change
Brokerage $ 9,428 $ 9,280 2 %
Trust and asset management 39,149 38,836 313 1
Total wealth management 48,577 48,116 461 1
Mortgage banking 150,650 55,569 95,081 171
Service charges on deposit accounts 21,685 18,125 3,560 20
(Losses) gains on investment securities, net (3,551 ) 2,228 (5,779 ) NM
Fees from covered call options 2,292 2,427 (135 ) (6 )
Trading losses, net (1,085 ) (215 ) (870 ) NM
Operating lease income, net 23,769 22,529 1,240 6
Other:
Interest rate swap fees 11,759 6,055 5,704 94
BOLI 666 2,740 (2,074 ) (76 )
Administrative services 2,045 2,039 6 —
Foreign currency remeasurement (loss) gain (359 ) 577 (936 ) NM
Early pay-offs of leases 349 5 344 NM
Miscellaneous 18,438 19,620 (1,182 ) (6 )
Total Other 32,898 31,036 1,862 6
Total Non-Interest Income $ 275,235 $ 179,815 53 %

All values are in US Dollars.

NM - Not meaningful.

33

TABLE 16: MORTGAGE BANKING

Three Months Ended Six Months Ended
(Dollars in thousands) Jun 30, <br>2020 Mar 31, <br>2020 Dec 31, <br>2019 Sep 30, <br>2019 Jun 30, <br>2019 Jun 30, <br>2020 Jun 30, <br>2019
Originations and Commitments:
Retail originations $ 1,588,932 $ 773,144 $ 782,122 $ 913,631 $ 669,510 $ 2,362,076 $ 1,035,112
Correspondent originations — — 4,024 50,639 182,966 — 331,066
Veterans First originations 621,878 442,957 459,236 456,005 301,324 1,064,835 466,086
Total originations for sale (A) $ 2,210,810 $ 1,216,101 $ 1,245,382 $ 1,420,275 $ 1,153,800 $ 3,426,911 $ 1,832,264
Originations for investment 56,954 73,727 105,911 154,897 106,237 130,681 199,926
Total originations $ 2,267,764 $ 1,289,828 $ 1,351,293 $ 1,575,172 $ 1,260,037 $ 3,557,592 $ 2,032,190
Purchases as a percentage of originations for sale 30 % 37 % 40 % 48 % 63 % 32 % 64 %
Refinances as a percentage of originations for sale 70 63 60 52 37 68 36
Total 100 % 100 % 100 % 100 % 100 % 100 % 100 %
Mandatory commitments to fund originations for sale ^(1)^ $ 1,275,648 $ 1,375,162 $ 372,357 $ 433,009 $ 475,618
Production Margin:
Production revenue (B) ^(2)^ $ 93,433 $ 49,327 $ 34,622 $ 40,924 $ 29,895 $ 142,760 $ 46,501
Production margin (B / A) 4.23 % 4.06 % 2.78 % 2.88 % 2.59 % 4.17 % 2.54 %
Mortgage Servicing:
Loans serviced for others (C) $ 9,188,285 $ 8,314,634 $ 8,243,251 $ 7,901,045 $ 7,515,186
MSRs, at fair value (D) 77,203 73,504 85,638 75,585 72,850
Percentage of MSRs to loans serviced for others (D / C) 0.84 % 0.88 % 1.04 % 0.96 % 0.97 %
Servicing income $ 6,908 $ 7,031 $ 6,247 $ 5,989 $ 5,460 $ 13,939 $ 10,920
Components of MSR:
MSR - current period capitalization $ 20,351 $ 9,447 $ 14,532 $ 14,029 $ 9,802 $ 29,798 $ 16,382
MSR - collection of expected cash flows - paydowns (419 ) (547 ) (483 ) (456 ) (457 ) (966 ) (962 )
MSR - collection of expected cash flows - payoffs (8,252 ) (6,476 ) (6,325 ) (6,781 ) (3,619 ) (14,728 ) (5,111 )
Valuation:
MSR - changes in fair value model assumptions (7,982 ) (14,557 ) 2,329 (4,058 ) (4,305 ) (22,539 ) (13,049 )
Gain (loss) on derivative contract held as an economic hedge, net 589 4,160 (483 ) 82 920 4,749 920
MSR valuation adjustment, net of gain/(loss) on derivative contract held as an economic hedge $ (7,393 ) $ (10,397 ) $ 1,846 $ (3,976 ) $ (3,385 ) $ (17,790 ) $ (12,129 )
Summary of Mortgage Banking Revenue:
Production revenue ^(2)^ $ 93,433 $ 49,327 $ 34,622 $ 40,924 $ 29,895 $ 142,760 $ 46,501
Servicing income 6,908 7,031 6,247 5,989 5,460 13,939 10,920
MSR activity 4,287 (7,973 ) 9,570 2,816 2,341 (3,686 ) (1,820 )
Other (2,304 ) (59 ) (2,579 ) 1,135 (285 ) (2,363 ) (32 )
Total mortgage banking revenue $ 102,324 $ 48,326 $ 47,860 $ 50,864 $ 37,411 $ 150,650 $ 55,569
(1) Certain volume adjusted for the estimated pull-through rate of the loan, which represents the Company’s best estimate of the likelihood that a committed loan will ultimately fund.
--- ---
(2) Production revenue represents revenue earned from the origination and subsequent sale of mortgages, including gains on loans sold and fees from originations, 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 Ended Q2 2020 compared to Q1 2020 Q2 2020 compared to Q2 2019
Jun 30, Mar 31, Dec 31, Sep 30, Jun 30,
(Dollars in thousands) 2020 2020 2019 2019 2019 Change % Change Change % Change
Salaries and employee benefits:
Salaries $ 87,105 $ 81,286 $ 82,888 $ 78,067 $ 75,360 7 % 16 %
Commissions and incentive compensation 46,151 31,575 40,226 40,289 36,486 14,576 46 9,665 26
Benefits 20,900 23,901 22,827 22,668 21,886 (3,001 ) (13 ) (986 ) (5 )
Total salaries and employee benefits 154,156 136,762 145,941 141,024 133,732 17,394 13 20,424 15
Equipment 15,846 14,834 14,485 13,314 12,759 1,012 7 3,087 24
Operating lease equipment 9,292 9,260 9,766 8,907 8,768 32 — 524 6
Occupancy, net 16,893 17,547 17,132 14,991 15,921 (654 ) (4 ) 972 6
Data processing 10,406 8,373 7,569 6,522 6,204 2,033 24 4,202 68
Advertising and marketing 7,704 10,862 12,517 13,375 12,845 (3,158 ) (29 ) (5,141 ) (40 )
Professional fees 7,687 6,721 7,650 8,037 6,228 966 14 1,459 23
Amortization of other intangible assets 2,820 2,863 3,017 2,928 2,957 (43 ) (2 ) (137 ) (5 )
FDIC insurance 7,081 4,135 1,348 148 4,127 2,946 71 2,954 72
OREO expense, net 237 (876 ) 536 1,170 1,290 1,113 NM (1,053 ) (82 )
Other:
Commissions - 3rd party brokers 707 865 717 734 749 (158 ) (18 ) (42 ) (6 )
Postage 1,591 1,949 2,220 2,321 2,606 (358 ) (18 ) (1,015 ) (39 )
Miscellaneous 24,948 21,346 26,693 21,083 21,421 3,602 17 3,527 16
Total other 27,246 24,160 29,630 24,138 24,776 3,086 13 2,470 10
Total Non-Interest Expense $ 259,368 $ 234,641 $ 249,591 $ 234,554 $ 229,607 11 % 13 %

All values are in US Dollars.

NM - Not meaningful.

Six Months Ended
Jun 30, Jun 30, %
(Dollars in thousands) 2020 2019 Change Change
Salaries and employee benefits:
Salaries $ 168,391 $ 149,397 13 %
Commissions and incentive compensation 77,726 68,085 9,641 14
Benefits 44,801 41,973 2,828 7
Total salaries and employee benefits 290,918 259,455 31,463 12
Equipment 30,680 24,529 6,151 25
Operating lease equipment 18,552 17,087 1,465 9
Occupancy, net 34,440 32,166 2,274 7
Data processing 18,779 13,729 5,050 37
Advertising and marketing 18,566 22,703 (4,137 ) (18 )
Professional fees 14,408 11,784 2,624 22
Amortization of other intangible assets 5,683 5,899 (216 ) (4 )
FDIC insurance 11,216 7,703 3,513 46
OREO expense, net (639 ) 1,922 (2,561 ) NM
Other:
Commissions - 3rd party brokers 1,572 1,467 105 7
Postage 3,540 5,056 (1,516 ) (30 )
Miscellaneous 46,294 40,481 5,813 14
Total other 51,406 47,004 4,402 9
Total Non-Interest Expense $ 494,009 $ 443,981 11 %

All values are in US Dollars.

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, pre-tax income, excluding provision for credit losses and pre-tax income, excluding provision for credit losses and MSR valuation adjustment. 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 and pre-tax income, excluding provision for credit losses and MSR valuation adjustment as useful measurements of the Company's core net income.

36

Three Months Ended Six Months Ended
Jun 30, Mar 31, Dec 31, Sep 30, Jun 30, Jun 30, Jun 30,
(Dollars and shares in thousands) 2020 2020 2019 2019 2019 2020 2019
Reconciliation of Non-GAAP Net Interest Margin and Efficiency Ratio:
(A) Interest Income (GAAP) $ 329,816 $ 344,067 $ 349,731 $ 354,627 $ 346,814 $ 673,883 $ 680,784
Taxable-equivalent adjustment:
- Loans 576 860 892 978 1,031 1,436 2,065
- Liquidity Management Assets 538 551 573 574 568 1,089 1,133
- Other Earning Assets 3 2 1 5 1 5 3
(B) Interest Income (non-GAAP) $ 330,933 $ 345,480 $ 351,197 $ 356,184 $ 348,414 $ 676,413 $ 683,985
(C) Interest Expense (GAAP) $ 66,685 $ 82,624 $ 87,852 $ 89,775 $ 80,612 $ 149,309 $ 152,596
(D) Net Interest Income (GAAP) (A minus C) $ 263,131 $ 261,443 $ 261,879 $ 264,852 $ 266,202 $ 524,574 $ 528,188
(E) Net Interest Income (non-GAAP) (B minus C) $ 264,248 $ 262,856 $ 263,345 $ 266,409 $ 267,802 $ 527,104 $ 531,389
Net interest margin (GAAP) 2.73 % 3.12 % 3.17 % 3.37 % 3.62 % 2.91 % 3.66 %
Net interest margin, fully taxable-equivalent (non-GAAP) 2.74 % 3.14 % 3.19 % 3.39 % 3.64 % 2.93 % 3.68 %
(F) Non-interest income $ 161,993 $ 113,242 $ 112,220 $ 115,137 $ 98,158 $ 275,235 $ 179,815
(G) Gains (losses) on investment securities, net 808 (4,359 ) 587 710 864 (3,551 ) 2,228
(H) Non-interest expense 259,368 234,641 249,591 234,554 229,607 494,009 443,981
Efficiency ratio (H/(D+F-G)) 61.13 % 61.90 % 66.82 % 61.84 % 63.17 % 61.49 % 62.91 %
Efficiency ratio (non-GAAP) (H/(E+F-G)) 60.97 % 61.67 % 66.56 % 61.59 % 62.89 % 61.30 % 62.62 %
Reconciliation of Non-GAAP Tangible Common Equity Ratio:
Total shareholders’ equity (GAAP) $ 3,990,218 $ 3,700,393 $ 3,691,250 $ 3,540,325 $ 3,446,950
Less: Non-convertible preferred stock (GAAP) (412,500 ) (125,000 ) (125,000 ) (125,000 ) (125,000 )
Less: Intangible assets (GAAP) (685,581 ) (687,626 ) (692,277 ) (627,972 ) (631,499 )
(I) Total tangible common shareholders’ equity (non-GAAP) $ 2,892,137 $ 2,887,767 $ 2,873,973 $ 2,787,353 $ 2,690,451
(J) Total assets (GAAP) $ 43,540,017 $ 38,799,847 $ 36,620,583 $ 34,911,902 $ 33,641,769
Less: Intangible assets (GAAP) (685,581 ) (687,626 ) (692,277 ) (627,972 ) (631,499 )
(K) Total tangible assets (non-GAAP) $ 42,854,436 $ 38,112,221 $ 35,928,306 $ 34,283,930 $ 33,010,270
Common equity to assets ratio (GAAP) (L/J) 8.2 % 9.2 % 9.7 % 9.8 % 9.9 %
Tangible common equity ratio (non-GAAP) (I/K) 6.7 % 7.6 % 8.0 % 8.1 % 8.2 %

37

Three Months Ended Six Months Ended
Jun 30, Mar 31, Dec 31, Sep 30, Jun 30, Jun 30, Jun 30,
(Dollars and shares in thousands) 2020 2020 2019 2019 2019 2020 2019
Reconciliation of Non-GAAP Tangible Book Value per Common Share:
Total shareholders’ equity $ 3,990,218 $ 3,700,393 $ 3,691,250 $ 3,540,325 $ 3,446,950
Less: Preferred stock (412,500 ) (125,000 ) (125,000 ) (125,000 ) (125,000 )
(L) Total common equity $ 3,577,718 $ 3,575,393 $ 3,566,250 $ 3,415,325 $ 3,321,950
(M) Actual common shares outstanding 57,574 57,545 57,822 56,698 56,668
Book value per common share (L/M) $ 62.14 $ 62.13 $ 61.68 $ 60.24 $ 58.62
Tangible book value per common share (non-GAAP) (I/M) $ 50.23 $ 50.18 $ 49.70 $ 49.16 $ 47.48
Reconciliation of Non-GAAP Return on Average Tangible Common Equity:
(N) Net income applicable to common shares $ 19,609 $ 60,762 $ 83,914 $ 97,071 $ 79,416 $ 80,371 $ 166,512
Add: Intangible asset amortization 2,820 2,863 3,017 2,928 2,957 5,683 5,899
Less: Tax effect of intangible asset amortization (832 ) (799 ) (793 ) (773 ) (771 ) (1,608 ) (1,502 )
After-tax intangible asset amortization 1,988 2,064 2,224 2,155 2,186 4,075 4,397
(O) Tangible net income applicable to common shares (non-GAAP) $ 21,597 $ 62,826 $ 86,138 $ 99,226 $ 81,602 $ 84,446 $ 170,909
Total average shareholders' equity $ 3,908,846 $ 3,710,169 $ 3,622,184 $ 3,496,714 $ 3,414,340 $ 3,809,508 $ 3,362,000
Less: Average preferred stock (273,489 ) (125,000 ) (125,000 ) (125,000 ) (125,000 ) (199,245 ) (125,000 )
(P) Total average common shareholders' equity $ 3,635,357 $ 3,585,169 $ 3,497,184 $ 3,371,714 $ 3,289,340 $ 3,610,263 $ 3,237,000
Less: Average intangible assets (686,526 ) (690,777 ) (689,286 ) (630,279 ) (624,794 ) (688,652 ) (623,524 )
(Q) Total average tangible common shareholders’ equity (non-GAAP) $ 2,948,831 $ 2,894,392 $ 2,807,898 $ 2,741,435 $ 2,664,546 $ 2,921,611 $ 2,613,476
Return on average common equity, annualized (N/P) 2.17 % 6.82 % 9.52 % 11.42 % 9.68 % 4.48 % 10.37 %
Return on average tangible common equity, annualized (non-GAAP) (O/Q) 2.95 % 8.73 % 12.17 % 14.36 % 12.28 % 5.81 % 13.19 %
Reconciliation of Non-GAAP Pre-Tax, Pre-Provision Income and Pre-Tax, Pre-Provision, Pre-MSR Adjustment Income:
Income before taxes $ 30,703 $ 87,083 $ 116,682 $ 134,601 $ 110,173 $ 117,786 $ 228,818
Add: Provision for credit losses 135,053 52,961 7,826 10,834 24,580 188,014 35,204
Pre-tax income, excluding provision for credit losses (non-GAAP) $ 165,756 $ 140,044 $ 124,508 $ 145,435 $ 134,753 $ 305,800 $ 264,022
Less: MSR valuation adjustment, net of (loss)/gain on derivative contract held as an economic hedge $ (7,393 ) $ (10,397 ) $ 1,846 $ (3,976 ) $ (3,385 ) $ (17,790 ) $ (12,129 )
Pre-tax income, excluding provision for credit losses and MSR valuation adjustments (non-GAAP) $ 173,149 $ 150,441 $ 122,662 $ 149,411 $ 138,138 $ 323,590 $ 276,151

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, 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, Island Lake, Itasca, Joliet, Lake Bluff, Lake Villa, Lansing, Lemont, Lindenhurst, Lynwood, Markham, Maywood, McHenry, Mokena, Mount Prospect, Mundelein, Naperville, North Chicago, Northfield, Norridge, Oak Lawn, Oak Brook, Orland Park, Palatine, Park Ridge, Prospect Heights, Ravinia, Riverside, Rolling Meadows, Roselle, Round Lake Beach, Shorewood, Skokie, South Holland, South Elgin, Spring Grove, Steger, Stone Park, Vernon Hills, Wauconda, Waukegan, Western Springs, Willowbrook, Wilmette, Winnetka and Wood Dale, and in Wisconsin in Albany, Burlington, Clinton, Darlington, Delafield, Delavan, Elm Grove, Genoa City, Kenosha, Lake Geneva, Madison, Menomonee Falls, Milwaukee, Monroe, Pewaukee, Racine, Sharon, 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, a division of Lake Forest Bank & Trust Company, N.A., and Wintrust Life Finance, 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.
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• 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.
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• 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.
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• 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.
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• Great Lakes Advisors LLC provides money management services and advisory services to individual accounts.
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• The Chicago Trust Company, N.A., a trust subsidiary, allows Wintrust to service customers’ trust and investment needs at each banking location.
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• Wintrust Asset Finance offers direct leasing opportunities.
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• 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.
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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, such as the impacts of the COVID-19 pandemic, and which may include, but are not limited to, those listed below and the Risk Factors discussed under Item 1A of the Company’s 2019 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

39

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:

• the severity, magnitude and duration of the COVID-19 pandemic 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;
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• 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;
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• 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;
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• negative effects suffered by us or our customers resulting from changes in U.S. trade policies;
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• the extent of defaults and losses on the Company’s loan portfolio, which may require further increases in its allowance for credit losses;
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• estimates of fair value of certain of the Company’s assets and liabilities, which could change in value significantly from period to period;
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• the financial success and economic viability of the borrowers of our commercial loans;
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• commercial real estate market conditions in the Chicago metropolitan area and southern Wisconsin;
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• 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;
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• inaccurate assumptions in our analytical and forecasting models used to manage our loan portfolio;
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• 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;
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• 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;
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• 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;
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• unexpected difficulties and losses related to FDIC-assisted acquisitions;
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• harm to the Company’s reputation;
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• any negative perception of the Company’s financial strength;
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• ability of the Company to raise additional capital on acceptable terms when needed;
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• disruption in capital markets, which may lower fair values for the Company’s investment portfolio;
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• 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;
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• failure or breaches of our security systems or infrastructure, or those of third parties;
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• security breaches, including denial of service attacks, hacking, social engineering attacks, malware intrusion or data corruption attempts and identity theft;
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• adverse effects on our information technology systems resulting from failures, human error or cyberattacks;
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• 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;
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• increased costs as a result of protecting our customers from the impact of stolen debit card information;
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• accuracy and completeness of information the Company receives about customers and counterparties to make credit decisions;
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• ability of the Company to attract and retain senior management experienced in the banking and financial services industries;
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• environmental liability risk associated with lending activities;
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• the impact of any claims or legal actions to which the Company is subject, including any effect on our reputation;
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• losses incurred in connection with repurchases and indemnification payments related to mortgages and increases in reserves associated therewith;
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• the loss of customers as a result of technological changes allowing consumers to complete their financial transactions without the use of a bank;
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• the soundness of other financial institutions;
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• the expenses and delayed returns inherent in opening new branches and de novo banks;
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• examinations and challenges by tax authorities, and any unanticipated impact of the Tax Act;
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• changes in accounting standards, rules and interpretations such as the new CECL standard and related changes to address the impact of COVID-19, and the impact on the Company’s financial statements;
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• the ability of the Company to receive dividends from its subsidiaries;
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40

• 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;
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• 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 and the rules and regulations that may be promulgated thereunder;
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• a lowering of our credit rating;
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• 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;
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• regulatory restrictions upon our ability to market our products to consumers and limitations on our ability to profitably operate our mortgage business;
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• increased costs of compliance, heightened regulatory capital requirements and other risks associated with changes in regulation and the regulatory environment;
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• the impact of heightened capital requirements;
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• increases in the Company’s FDIC insurance premiums, or the collection of special assessments by the FDIC;
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• delinquencies or fraud with respect to the Company’s premium finance business;
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• credit downgrades among commercial and life insurance providers that could negatively affect the value of collateral securing the Company’s premium finance loans;
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• the Company’s ability to comply with covenants under its credit facility; and
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• fluctuations in the stock market, which may have an adverse impact on the Company’s wealth management business and brokerage operation.
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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 Wednesday, July 22, 2020 at 11:00 a.m. (Central Time) regarding second quarter 2020 results. Individuals interested in listening should call (877) 363-5049 and enter Conference ID #6266965. 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 2020 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.

41

q22020earningspresent

Wintrust Financial Corporation Earnings Release Presentation Q2 2020

Q2 2020 Highlights Performance Highlights vs. Q1 2020 Second Quarter 2020 Highlights as compared to First Quarter 2020 (Q2 2020) • Net interest income increased by $1.7 million compared to the first quarter of 2020 as the impact of a $5.1 billion increase in average earning assets was partially offset by a 39 $21.7 million -$41.2 million basis point decline in net interest margin. The decline in net interest margin was largely Net Income Net Income due to declining interest rates and excess short–term liquidity on the balance sheet. $0.34 -$0.70 • Provision for credit losses of $135.1 million in second quarter of 2020. Provision for credit losses increased by $82.1 million from $53.0 million in the first quarter of 2020. Diluted EPS1 Diluted EPS1 The increased provision for credit losses expense in the second quarter of 2020 was primarily related to generally deteriorating forecasted economic conditions impacted by 2 0.21% -48 bps the COVID-19 pandemic. ROA3 ROA3 • Net charge-offs of $15.4 million in the second quarter of 2020, of which $9.5 million were 2.17% -465 bps2 previously reserved for, as compared to $5.3 million in the first quarter of 2020. ROE4 ROE4 • Mortgage banking revenue increased by $54.0 million to $102.3 million for the second 2 quarter of 2020 as compared to $48.3 million in the prior quarter. 0.93% -40 bps ◦ Loans originated for sale in the second quarter of 2020 totaled $2.2 billion as Net Overhead Ratio Net Overhead Ratio compared to $1.2 billion in the prior quarter. 61.13% -77 bps2 • Incurred acquisition related costs of $4.9 million in the second quarter of 2020 as Efficiency Ratio (GAAP) Efficiency Ratio (GAAP) compared to $1.7 million in the first quarter of 2020. 60.97% -70 bps2 5 5 Efficiency Ratio (Non-GAAP ) Efficiency Ratio (Non-GAAP ) Other Second Quarter 2020 Highlights As of 6/30/2020 vs. 3/31/2020 • Paid $2.6 million of COVID-19 related salary incentives to non-executive personnel. $43.5 billion +$4.7 billion • Originated $3.4 billion of Paycheck Protection Program ("PPP") loans which generated Total Assets Total Assets net fees of $91.0 million to be recognized over the estimated life of the PPP loans. Fees are recognized on a level yield basis. $31.4 billion +$3.6 billion • Completed a preferred stock issuance which generated proceeds of $278.4 million, net of Total Loans Total Loans the underwriting discount, which contributed to increasing estimated Tier 1 and Total Capital ratios to 10.1% and 12.8%, respectively. $35.7 billion +$4.2 billion Total Deposits Total Deposits 1 Diluted EPS: Net Income Per Common Share - Diluted 2 Bps: Basis Points 3 ROA: Return on Average Assets 4 ROE: Return on Average Common Equity 5See Non-GAAP reconciliation on pg. 17 2

Earnings Summary Condensed Income Statement Current Q Difference vs. Current Q Net Income & ROA ($ in Millions) Thousands ($) Q2 2020 Q1 2020 Q2 2019 $99.1 Net Interest Income $263,131 $1,688 $(3,071) $81.5 $86.0 Key Observations Non-Interest Income $161,993 $48,751 $63,835 1.16% $62.8 1.02% • Pre-Provision Net Revenue increased by $15.5 million compared to Net Revenue $425,124 $50,439 $60,764 0.96% the prior quarter and $10.8 million as compared to Q2 2019 Non-Interest Expense $259,368 $24,727 $29,761 0.69% $21.7 Pre-Provision Net Revenue $165,756 $25,712 $31,003 0.21% Provision For Credit Losses $135,053 $82,092 $110,473 • Income Before Taxes $30,703 $(56,380) $(79,470) Q2 2019 Q3 2019 Q4 2019 Q1 2020 Q2 2020 Income Tax Expense $9,044 $(15,227) $(19,663) Net Income $21,659 $(41,153) $(59,807) Net Income ROA Preferred Stock Dividends $2,050 $— $— Net Income Available to Common Shares $19,609 $(41,153) $(59,807) Diluted EPS $0.34 $(0.70) $(1.04) Pre-Tax Income, excluding Provision for Credit Losses 1 ROA 0.21% -48 bps -81 bps and MSR Valuation Adjustments (Non-GAAP ) ($ in Millions) ROE 2.17% -465 bps -751 bps $173.1 Diluted EPS Trend $149.4 $150.4 $1.69 $138.1 $1.38 $1.44 $1.04 $122.7 $0.34 Q2 2019 Q3 2019 Q4 2019 Q1 2020 Q2 2020 Q2 2019 Q3 2019 Q4 2019 Q1 2020 Q2 2020 Pre-Tax Income, excluding the Provision for Credit Losses and Diluted EPS MSR Valuation Adjustments 1See Non-GAAP reconciliation on pg. 18 3

Loan Portfolio Key Observations Total Loans ($ in Billions) • Total loans increased $3.6 billion from the prior quarter end and $6.1 billion as Year-over-Year Change $6.1B or 24% compared to the end of Q2 2019. $31.4 ◦ Lines of credit utilization declined to approximately 49% at June 30, $27.8 2020 as compared to approximately 56% at March 31, 2020. $26.8 $25.3 $25.7 • Q2 2020 loan growth was driven by Commercial PPP loans and Premium 5.07% Finance Receivables portfolios up $3.3 billion and $714 million, respectively, 4.93% 4.69% compared to prior quarter end. 4.52% 3.92% • Before the impact of scheduled payments and prepayments, gross commercial and commercial real estate loan pipelines were estimated to be approximately 6/30/2019 9/30/2019 12/31/2019 3/31/2020 6/30/2020 $1.1 billion to $1.2 billion at June 30, 2020. When adjusted for the probability of closing, the pipelines were estimated to be approximately $700 million to $800 million at June 30, 2020. Total Loans Total Loan Yield Loan Composition (as of 6/30/2020) Total Loans as of 6/30/2020 vs. 3/31/2020 ($ in Millions) $535 $179 $12 17% $3,335 $15 $50 $31,403 39% 13% $(28) 4% 1% 26% $27,807 $(502) 0 e y e l e r 0 02 PP PP tat uit tat cia nc he 02 1/2 l. P l P Es q Es er ra Ot 0/2 /3 xc cia al e E al m nsu & /3 3 al e er Re om Re om e I er 6 ci mm al H al - C if m er o rci nti les - L nsu mm C me ide ab les Co Co om es eiv vab C R ec cei e R Re anc ce Fin an m Fin iu um rem mi P Pre 4

Deposit Portfolio Key Observations Total Deposits ($ in Billions) • Total deposits increased by $4.2 billion from the prior quarter end. The Year-over-Year Change increase in deposits included $2.6 billion of non-interest bearing deposit $8.1B or 30% $35.7 growth primarily related to PPP funding. In addition, the Company successfully grew deposits in the second quarter through organic retail $31.5 $30.1 channels including continued success of MaxSafeTM deposit products which $28.7 $27.5 grew by $482 million in the second quarter. 1.37% 1.43% 1.33% • Rate paid on interest bearing deposits decreased 39 basis points from the 1.20% prior quarter. 0.81% • Non-interest bearing deposits comprise 29% of total deposits, compared to 6/30/2019 9/30/2019 12/31/2019 3/31/2020 6/30/2020 24% of total deposits in the first quarter. Total Deposits Total Interest Bearing Deposit Rate • The loans to deposits ratio ended the current quarter at 88.1% as compared to 88.4% at prior quarter end. Deposit Composition (as of 6/30/2020) Total Deposits as of 6/30/2020 vs. 3/31/2020 ($ in Millions) $1,174 $165 14% 29% $496 $(552) $35,652 10% $259 $2,648 25% 10% 12% $31,462 s t s t 020 ing DA sit ke ng osi 020 /2 ear D po ar avi ep /2 /31 B ing De M S f D /30 3 est ar nt ey s o 6 ter Be me on te -In est ge M fica on ter na rti N In Ma Ce nd th e a eal Tim OW W N 5

Net Interest Margin Net Interest Margin (Quarterly Trends) Net Interest Margin, Fully Taxable-Equivalent (Non-GAAP1) 4.74% 4.53% 3.14% 4.25% 4.13% 0.36% 3.64% 3.39% 3.44% 3.62% (0.07)% 2.74% 3.19% 3.14% 3.37% 3.17% 3.12% 2.74% (0.69)% 2.73% 1.56% 1.51% 0 ld te s 0 1.45% 202 ie Ra nd 202 1 t Y ty Fu 2 1.34% Q sse ili ree Q g A iab t F in g L Ne arn in E ear 0.98% st B ere Int 0.41% 0.42% 0.39% 0.35% 0.28% Key Observations Q2 2019 Q3 2019 Q4 2019 Q1 2020 Q2 2020 • Q2 2020 net interest income totaled $263.1 million. ◦ An increase of $1.7 million as compared to Q1 2020 and a Net Interest Margin (GAAP) decrease of $3.1 million as compared to Q2 2019. Net Interest Margin, Fully Taxable-Equivalent (Non-GAAP1) • Net interest margin (Non-GAAP1) decreased by 40 bps from the prior Earning Assets Yield quarter: ◦ Earning assets yield down 69 bps. Net Free Funds Contribution ◦ Interest bearing liability rate decreased 36 bps. Rate on Interest Bearing Liabilities ◦ Net free funds decreased 7 bps. 1 See Non-GAAP reconciliation on pg. 17 6

Credit Quality Non-Performing Loans ("NPLs") ($ in Millions) Net Charge-Offs ("NCOs") ($ in Millions) $22.3 $179.4 $188.3 $15.4 0.36% $12.7 $113.4 $114.3 $117.6 0.65% 0.60% $9.4 0.19% 0.20% 0.15% $5.3 0.08% 0.45% 0.44% 0.44% Q2 2019 Q3 2019 Q4 2019 Q1 2020 Q2 2020 6/30/2019 9/30/2019 12/31/2019 3/31/2020 6/30/2020 NCOs $ NPLs $ NPLs as a % of Total Loans Annualized NCOs as a % of Average Total Loans Allowance for Credit Losses at Period-End ($ in Millions) Total Provision for Credit Losses ($ in Millions) $373.2 $135.1 Incurred Loss Method CECL 1.19% Incurred Loss Method CECL $253.5 161.87% $163.3 0.91% • The Company estimates an increase to the allowance for credit losses $161.9 $158.5 90.68% 87.22% $53.0 of approximately 30% to 50% at adoption related to its loan portfolios and related lending commitments. Approximately 80% of the 0.64% 0.64% $24.6 0.59% $10.8 9.98% 11.41% estimated increase is related to: $7.8 ◦ Additions to existing reserves for unfunded lending-related 6/30/2019 9/30/2019 12/31/2019 3/31/2020 6/30/2020 6/30/2019 9/30/2019 12/31/2019 3/31/2020 6/30/2020 commitments due to the consideration under CECL of expected utilization by the Company's borrowers over the life of such Total Allowance for Credit Losses Total Provision for Credit Losses commitments. $135.1 ◦ Establishment of reserves for acquired loans which previously Total Allowance for Credit Losses as a % of Total Loans Net Charge-Offs as a % of the Provision for Credit Losses $135.1 161.9% considered credit discounts. $53.0 The Company estimates an insignificant impact at adoption of 7 90.7% 87.2% $24.6 $53.0 measuring an allowance for credit losses for other in-scope assets (e.g. $10.8 $7.8 held-to-maturity debt securities). $24.6 $10.8 $7.8 10.0% 11.4% Q2 2019 Q3 2019 Q4 2019 Q1 2020 Q2 2020 Provision for credit losses - PCD Provision for credit losses - non PCD Net charge-offs as a percentage of the provision for credit losses

Credit Quality - CECL Allowance for Credit Losses ($ in Thousands) - 6/30/2020 vs. 3/31/2020 Macro Economic Scenario Key Model Inputs Qualitative Considerations • Baa Corporate credit spread widens to a peak in • Economic Inputs • Current recessionary environment and expected Q2 2020 and then narrows over the remaining 7 ◦ Baa Credit Spread recovery Day 1 quarters ◦ Commercial Real-Estate Price Index • Direct fiscal stimulus payments to borrowers • Commercial Real Estate Price Index declines ◦ GDP • Substantial liquidity in the market Adjustment through Q4 2020 and recovers in 2021 but ◦ Dow Jones Total Stock Market Index • Unemployment compensation program remains below the Q1 2020 level • Portfolio Characteristics assistance increased • GDP growth rate reaches a low in Q2 2020 and ◦ Risk Ratings • Government sponsored Paycheck Protection • CECL Day 1 Program recovers to above trend growth by Q3 2021 ◦ Life of Loan transition • Dow Jones U.S. Total Stock Market Index • Low exposure to industries with the highest risk adjustment declines through Q4 2020 and starts appreciating factors • Includes ACL for in 2021 • High touch relationships with commercial and loans and leases, • The amount of Allowance for Credit Losses consumer borrowers build attributable to economic factors in Q2 2020 off-balance sheet reflects further deterioration in the overall credit exposures macro-economic outlook. Economic and debt securities Factors Portfolio $96,177 Changes Key Observations $23,515 • Changes due to • New volume and run-off macroeconomic • Changes in credit quality conditions • Aging of existing $373,174 portfolio • Shifts in segmentation $253,482 mix • Changes in specific reserves • Net charge-offs 3/31/2020 6/30/2020 8

Total loans of $31.4 billion Credit Quality - COVID-19 - Select High Impact Industries Select High Impact Industries March 31, 2020 June 30, 2020 As of 6/30/2020 COVID-19 Loan Balance PPP Loan Loan % of Total Loan % of Total Related % with PPP Loan Balance as a Industry Total Commitment Total Commitment COVID-19 Balance Balance 1 Modified Balance % of Loan Loans Balance Loans Balance Loan Balances Related Balance $ shown in Millions Modifications Arts Entertainment & Recreation $207 0.7% $239 $215 0.8% $280 $36 16.7% $38 17.7% Dentists, Doctors, & Hospitals $452 1.6% $537 $467 1.7% $581 $128 27.4% $150 32.1% Hotels & Accommodation $164 0.6% $166 $174 0.6% $176 $43 24.7% $38 21.8% Nursing Home & Senior Living $245 0.9% $289 $227 0.8% $298 $5 2.2% $83 36.6% Oil & Gas $62 0.2% $63 $49 0.2% $49 $5 10.2% $2 4.1% Restaurants & Food Services $1,186 4.3% $1,392 $1,173 4.2% $1,381 $385 32.8% $403 34.4% Social Services $93 0.3% $130 $96 0.3% $131 $7 7.3% $66 68.8% Total $2,409 8.7% $2,818 $2,401 8.6% $2,896 $609 25.4% $780 32.5% Key Observations Key Observations Total Loan Mix1 as of 6/30/2020: Select High Impact Industries • Restaurants & Food Services makes up 4.2% of the Total Loans excluding PPP Loans and is primarily made up of Quick Service Restaurants ("QSRs"). WTFC has found QSRs have not been as impacted as dine-in only restaurants as they derive more revenue via drive-thru and take out. Other Loans 91.4% • Dentists, Doctors and Hospitals had requests for COVID-19 related Select High modifications in Q2 2020 representing 27.4% of the portfolio as of June 30, 2020. This portfolio has started to improve with the reopening of medical Impact Industries offices. 8.6% • Hotels & Accommodations make up 0.6% of the Total Loans excluding PPP Loans. 24.7% of the portfolio has requested a COVID-19 related modification as of June 30, 2020. Hotels & Accommodations portfolio remains under stress due to the pandemic. 1 Total Loans excludes $3.3 billion of PPP loans at 6/30/2020 9

Commercial and Commercial Real Estate Portfolio Loan Portfolio Mix, Growth, and COVID-19 Related Modified Loans as of 6/30/2020 and 3/31/2020 (Commercial and Commercial Real Estate Portfolio) COVID-19 Related COVID-19 As of As of Increase/ Related Modified Modified Loans as a % of Total 6/30/2020 3/31/2020 (Decrease) Loans as of (Dollars in thousands) 6/30/2020 Balance as of 6/30/2020 Commercial: Commercial and industrial $ 4,240,829 $ 4,511,456 $ (270,627) $ 414,497 9.8 % PPP 3,335,368 — 3,335,368 — — % Franchise 963,531 994,180 (30,649) 325,312 33.8 % Mortgage warehouse lines of credit 352,659 323,844 28,815 — — % Community Advantage - homeowner associations 238,277 229,368 8,909 — — % Asset-based lending 719,418 1,045,066 (325,648) 46,387 6.4 % Municipal 514,256 510,711 3,545 — — % Leases 1,179,014 1,044,092 134,922 95,138 8.1 % Other 278,674 341,011 (62,337) 756 0.3 % Commercial, industrial, and other - PCD1 26,747 26,158 589 — — % Total Commercial: $ 11,859,232 $ 9,025,886 $ 2,833,346 $ 882,090 7.4% Commercial real-estate: Residential construction $ 103,427 $ 115,450 $ (12,023) $ — — % Commercial construction 971,921 909,668 62,253 33,995 3.5 % Land 209,934 212,156 (2,222) 3,360 1.6 % Office 1,110,386 1,122,689 (12,303) 104,972 9.5 % Industrial 1,045,930 1,073,050 (27,120) 54,803 5.2 % Retail 1,101,383 1,132,097 (30,714) 284,911 25.9 % Multi-family 1,478,658 1,417,843 60,815 47,688 3.2 % Mixed use and other 1,980,946 1,991,027 (10,081) 292,868 14.8 % Commercial real-estate - PCD1 198,160 211,551 (13,391) — — % Total Commercial real-estate: $ 8,200,745 $ 8,185,531 $ 15,214 $ 822,597 10.0% Total Commercial and Commercial real-estate $ 20,059,977 $ 17,211,417 $ 2,848,560 $ 1,704,687 8.5% 1As a result of the adoption of ASU 2016-13, the Company transitioned all previously classified purchase credit impaired ("PCI") loans to purchased credit deteriorated ("PCD") loans effective January 1, 2020. For prior periods presented, the previously classified PCI loans are presented with the PCD loans in their respective class. 10

Credit Quality - COVID-19 Related Modified Loans COVID-19 Related Modified Loans as of 6/30/2020 COVID-19 Related Modified Loan Types Loan Full Payment Balance Deferral: 39.3% $ shown in Millions Interest Only $922 Interest Only: 53.6% Full Payment Deferral $675 Line Increases $33 All Other $89 Total $1,719 Line Increases: 1.9% All Other: 5.2% COVID-19 Related Modified Loan Mix by Category as of 6/30/2020 Key Observations • Majority of COVID-19 Related Modified Loans have Retail: 16.6% been modified to interest only payments. • Franchise portfolio represents 18.9% of the total COVID-19 related modified loans and 3.4% of the Total Loan Portfolio excluding PPP Loans. However, non-performing loans in this portfolio have remained relatively flat as compared to prior quarter end. Franchise: 18.9% • Commercial Real Estate Retail has COVID-19 related modified loans as a percentage of its portfolio balance of 25.9%. Commercial Real Estate Retail comprises All Other COVID-19 3.9% of the Total Loan Portfolio excluding PPP Loans. Related Modified This portfolio is primarily comprised of service focused Loans: 64.5% customers with the remaining in merchandise and apparel. The portfolio has an average loan size of approximately $1.3MM as of June 30, 2020. 11

Credit Quality - COVID-19 Related Modified Loans Commercial - Number of COVID-19 Related Modified Loans by Week 1 4 1 7 — 8 2 04/06/20 7 7 04/13/20 6 9 3 Consumer 1 0 0 4 04/20/20 2 04/27/20 - Number of COVID-190 5Related/04/2 Modified0 Loans by Week 1 2 3 05/11/20 1 4 1 9 05/18/20 1 1 05/26/20 1 4 5 06/01/20 2 2 7 2 8 — 06/08/20 9 Commercial real-estate 06/15/20 7 04/06/20 1 9 2 04/13/20 4 06/22/20 1 4 Does not take into consideration the impact of expiring modifications and does not count repeat 4 modifications to a single loan04/20/20 06/29/20 1 04/27/20 07/06/20 9 9 1 8 05/04/20 07/13/20 - Number of COVID-19 Related Modified Loans by Week 2 4 05/11/20 3 6 1 8 3 5 05/18/20 6 4 8 3 9 7 05/26/20 — 1 6 06/01/20 4 04/06/20 6 7 4 8 06/08/20 04/13/20 COVID-19 Modified Loan Balance 06/15/20 3 Premium Finance Receivable Loans04/20/20 06/22/20 3 04/27/20 7 06/29/20 05/04/20 3 07/06/20 2 05/11/20 2 3 6 07/13/20 05/18/20 1 0 05/26/20 2 5 8 5 1 06/01/20 — 06/08/20 2 — 1 04/06/20 . over Total Loans % 7 06/15/20 2 % 5 1 3 04/13/20 .8 . 2 % 5 06/22/20 Cumulative balance of all COVID-19 Modified Loans includes impact of expiring% 4 modifications .3 % 5 04/20/20 .4 06/29/20 % 6 1 .4 0 % 7 04/27/20 .1 07/06/20 % 7 .7 05/04/20 % excluding PPP and 07/13/20 8 .1 05/11/20 % 8 .7 % 9 05/18/20 .2 % 05/26/20 8 .7 % 06/01/20 8 .7 % 06/08/20 06/15/20 06/22/20 06/29/20 07/06/20 07/13/20 12

Non-Interest Income Non-Interest Income ($ in Millions) Operating Lease Income, Net ($ in Millions) $162.0 $12.5 $14.9 $12.0 $12.0 $10.4 $11.7 $11.8 $115.1 $112.2 $113.2 $11.8 $98.2 $18.2 $15.8 $15.7 $237.0 $15.7 $10.0 $11.0 $11.3 $9.3 $12.0 $12.5 $12.0 $230.1 $228.6 $231.2 $11.7 $102.3 $37.4 $50.9 $47.9 $48.3 $24.1 $24.0 $25.0 $25.9 $22.6 $207.1 Q2 2019 Q3 2019 Q4 2019 Q1 2020 Q2 2020 Q2 2019 Q3 2019 Q4 2019 Q1 2020 Q2 2020 Wealth Management Mortgage Banking Operating Lease Income, Net Operating Lease Income, net Service Charges on Deposits Lease Investments, Net (Period-End Balance) Other1 Wealth Management Revenue ($ in Millions) Key Observations $25.9 • Non-interest income totaled $162.0 million: $24.1 $25.0 $24.0 $22.6 ◦ An increase of $48.8 million as compared to Q1 2020 and an $4.9 $5.3 $4.8 $4.7 $4.1 increase of $63.8 million as compared to Q2 2019. $20.1 $20.6 $19.3 $19.3 $18.5 • Mortgage banking revenue increased by $54.0 million in the second quarter of 2020 as compared to the first quarter of 2020. $27.6 $27.0 $25.9 $26.1 ◦ Loans originated for sale were $2.2 billion at the end of the $25.0 second quarter of 2020 as compared to $1.2 billion at the end of the first quarter of 2020. Q2 2019 Q3 2019 Q4 2019 Q1 2020 Q2 2020 • Wealth management income decreased $3.3 million as compared to Q1 Trust and Asset Management 2020 primarily due to decreased asset management fees, trust fees and brokerage commissions. Brokerage 1 Other NII - includes Interest Rate Swap Fees, BOLI, Administrative Services, FX Assets Under Administration ($ in Billions) Remeasurement Gains/(Losses), Early Pay-Offs of Capital Leases, Gains/(losses) on investment securities, net, Fees from covered call options, Trading gains/(losses), net 13 and Miscellaneous.

$102.3 $20.4 Mortgage Banking $4.6 Production Revenue ($ in Millions) MSR1 Value and Loans Serviced for Others ($ in Millions) $48.3 $4.2 $50.9 $93.4 $9,188 $9.4 $0.1 $47.9 MSR - Payoffs/ $8,315 $14.0 Paydowns $8,243 $7.0 $7,901 LOGIC IN $37.4 $7,515 $14.5 $93.4 $7.2 MSR - Change in $0.9 Fair Value Model $85.6 MORTGAGE $9.8 $3.8 Assumptions $49.3 4.23% $5.2 $40.9 $77.2 BANKING Production $34.6 $75.6 $49.3 Revenue $29.9 4.06% $72.9 $73.5 $40.9 $34.6 REVENUE Servicing Income Mortgage banking production revenue $29.9 & Other 2.88% 2.78% Q2 2019 Q3 2019 Q4 2019 Q1 2020 Q2 2020 increased by $44.1 million as 2.59% mortgage originations for sale NEEDS TO BE MSR $2.3 Capitalization MSRs, at fair value Loans Serviced for Others totaled $2.2 billion in the second $(6.8) $(7.0) Q2 2019 Q3 2019 Q4 2019 Q1 2020 Q2 2020 quarter of 2020 as compared to $1.2 MODIFIED $(4.3) $(0.5) $(8.7) $(4.1) MSR Hedging billion in the first quarter of 2020. $(14.6) $(8.0) Gains (Losses) Q2 2019 Q3 2019 Q4 2019 Q1 2020 Q2 2020 Q2 2019 Q3 2019 Q4 2019 Q1 2020 Q2 2020 Production Revenue Production Margin % of MSRs to Loans Serviced for Others 0.97% 0.96% 1.04% 0.88% 0.84% Originations for Sale (Quarterly $ in Millions) Key Observations $2,211 • Loans originated for sale in the second quarter of 2020 totaled $2.2 billion as compared to $1.2 billion in the prior quarter. $622 $1,420 • Production margin increased from 4.06% in the first quarter of 2020 to $1,154 $1,245 $1,216 $456 4.23% in the second quarter of 2020. $301 $51 $459 $443 $183 $4 $1,589 • Origination volume mix in Q2 2020: $913 $670 $782 $773 ◦ 30% Purchases / 70% Refinances • As compared to origination volume mix in Q1 2020: Q2 2019 Q3 2019 Q4 2019 Q1 2020 Q2 2020 ◦ 37% Purchases / 63% Refinances Retail Originations Correspondent Originations Veterans First Originations 1 MSR: Mortgage Servicing Right 14

Non-Interest Expense Trending Non-Interest Expense ($ in Millions) Expense Management Ratios $259.4 1.64% $249.6 1.53% $234.6 $234.6 Salaries and $229.6 $37.4 1.40% $34.5 Employee Benefits 1.33% $28.5 $30.2 $10.4 66.56% $33.2 $7.6 $7.7 $6.5 $7.7 $8.4 $9.3 Equipment $6.2 $8.0 $9.8 $6.7 $7.7 $6.2 $8.9 $12.5 $9.3 $8.8 $13.4 $16.9 0.93% $12.8 $17.1 $10.9 Occupancy, net $15.0 $15.9 $17.5 $15.8 $13.3 $14.5 $12.8 $14.8 Advertising and Marketing 62.89% Operating Lease 61.59% 61.67% Equipment $154.2 60.97% $141.0 $145.9 $136.8 $133.7 Professional Fees Data Processing Q2 2019 Q3 2019 Q4 2019 Q1 2020 Q2 2020 Other 1 2 3 Q2 2019 Q3 2019 Q4 2019 Q1 2020 Q2 2020 Net Overhead Ratio Efficiency Ratio (Non-GAAP ) Non-Interest Expense - Current Quarter vs. Prior Quarter Q2 2020 Key Observations ($ in Millions) • Salary and employee benefits increase comprised of: $6.9 $259.4 $2.9 ◦ $14.6 million in commissions and incentive $17.4 $2.0 compensation. $(1.2) ◦ $5.8 million in salaries. $234.6 $(3.2) ◦ Partially offset by $3.0 million decrease in employee benefits expense. • Advertising & Marketing decreased $3.2 million primarily related to lower sports sponsorship costs due 0 g g e s 0 to shortened or canceled seasons. 02 in in nc se 02 2 s et ss a nt n en 2 1 fit k ce ur e io p 2 • FDIC Insurance increased $2.9 million primarily due to Q nd e ar o s ng t x Q a en M pr In ti ra E s B a C on de er ie e nd at I C si th higher assessment rates impacted by declines in the Tier ar ye a D D n se O al o g F o n ll S pl in C e A 1 Leverage Ratio at the Company's bank affiliates as a m tis xp E er E dv result of asset growth, including PPP loans. A 3 1 Other NIE - includes amortization of other intangible assets, FDIC insurance, OREO 2 Net Overhead Ratio - The net overhead ratio is calculated by netting total non- See Non-GAAP reconciliation expense, net, Commissions (3rd Party Brokers), Postage and Miscellaneous interest expense and total non-interest income, annualizing this amount, and dividing on pg.17 by that period's average total assets. A lower ratio indicates a higher degree of 15 efficiency.

Capital Q2 2020 Key Observations Risk-based Capital Ratios • Tangible book value per common share Q2 2019 Q3 2019 Q4 2019 Q1 2020 Q2 2020 was relatively flat from the prior quarter- 1 end and up $2.75 or 5.8% from Q2 2019. Common equity tier 1 capital ratio 9.2% 9.3% 9.2% 8.9% 8.8% Tier 1 capital ratio1 9.6% 9.7% 9.6% 9.3% 10.1% • Completed a preferred stock issuance 1 which generated proceeds of $278.4 Total capital ratio 12.4% 12.4% 12.2% 11.9% 12.8% million, net of the underwriting discount, which contributed to increasing estimated Tangible book value per common share Tier 1 and Total Capital ratios to 10.1% and (Non-GAAP2) $47.48 $49.16 $49.70 $50.18 $50.23 12.8%, respectively. • Risk-based capital ratios not impacted by Strong Capital Levels PPP as PPP loans are 0% risk weighted assets. However, the Tier 1 Leverage Ratio Estimated Excess was negatively impacted by significant Capital Above growth in Total Assets related to the $3.3 Conservation Buffer 4.50% 2.50% 7.00% billion increase in PPP loans. Common equity ($ in Millions) tier 1 capital1 • Q2 2020 dividend of $0.28 per common 8.8% $613 share up 12% from Q2 2019. • Have temporarily suspended the common 6.00% 2.50% 8.50% Tier 1 capital stock repurchase program as an additional ratio1 prudential measure given current market 10.1% $522 uncertainty and to continue to focus capital deployment supporting clients and the community. 8.00% 2.50% 10.50% Total capital ratio1 12.8% $763 Minimum Requirement Product Conservation Buffer WTFC 1 Capital ratios for Q2 2020 are estimated 2 See Non-GAAP reconciliation on pg.18 16

Non-GAAP Reconciliation Three Months Ended Six Months Ended Reconciliation of Non-GAAP Net Interest Margin June 30, March 31, December 31, September June 30, June 30, June 30, 30, and Efficiency Ratio ($ in Thousands): 2020 2020 2019 2019 2019 2020 2019 (A) Interest Income (GAAP) $ 329,816 $ 344,067 $ 349,731 $ 354,627 $ 346,814 $ 673,883 $ 680,784 Taxable-equivalent adjustment: - Loans 576 860 892 978 1,031 1,436 2,065 - Liquidity Management Assets 538 551 573 574 568 1,089 1,133 - Other Earning Assets 3 2 1 5 1 5 3 (B) Interest Income (non-GAAP) $ 330,933 $ 345,480 $ 351,197 $ 356,184 $ 348,414 $ 676,413 $ 683,985 (C) Interest Expense (GAAP) $ 66,685 $ 82,624 $ 87,852 $ 89,775 $ 80,612 $ 149,309 $ 152,596 (D) Net Interest Income (GAAP) (A minus C) $ 263,131 $ 261,443 $ 261,879 $ 264,852 $ 266,202 $ 524,574 $ 528,188 (E) Net Interest Income (non-GAAP) (B minus C) $ 264,248 $ 262,856 $ 263,345 $ 266,409 $ 267,802 $ 527,104 $ 531,389 Net interest margin (GAAP) 2.73% 3.12% 3.17% 3.37% 3.62% 2.91% 3.66% Net interest margin, fully taxable-equivalent (non-GAAP) 2.74% 3.14% 3.19% 3.39% 3.64% 2.93% 3.68% (F) Non-interest income $ 161,993 $ 113,242 $ 112,220 $ 115,137 $ 98,158 $ 275,235 $ 179,815 (G) Gains (losses) on investment securities, net 808 (4,359) 587 710 864 (3,551) 2,228 (H) Non-interest expense 259,368 234,641 249,591 234,554 229,607 494,009 443,981 Efficiency ratio (H/(D+F-G)) 61.13% 61.90% 66.82% 61.84% 63.17% 61.49% 62.91% Efficiency ratio (non-GAAP) (H/(E+F-G)) 60.97% 61.67% 66.56% 61.59% 62.89% 61.30% 62.62% The accounting and reporting policies of Wintrust conform to generally accepted accounting principles (“GAAP”) in the United States and prevailing practices in the banking industry. However, certain non- GAAP performance measures and ratios are used by management to evaluate and measure the Company’s performance. Management believes that these measures and ratios provide users of the Company’s financial information a more meaningful view of the performance of the Company's interest-earning assets and interest-bearing liabilities and of the Company’s operating efficiency. Other financial holding companies may define or calculate these measures and ratios differently. 17

Non-GAAP Reconciliation Three Months Ended Six Months Ended Reconciliation of Non-GAAP Tangible Book Value per June 30, March 31, December 31, September June 30, June 30, June 30, Common Share ($'s and Shares in Thousands): 2020 2020 2019 201930, 2019 2020 2019 Total shareholders’ equity $ 3,990,218 $ 3,700,393 $ 3,691,250 $ 3,540,325 $ 3,446,950 Less: Preferred stock (412,500) (125,000) (125,000) (125,000) (125,000) (L) Total common equity $ 3,577,718 $ 3,575,393 $ 3,566,250 $ 3,415,325 $ 3,321,950 (M) Actual common shares outstanding 57,574 57,545 57,822 56,698 56,668 Book value per common share (L/M) $62.14 $62.13 $61.68 $60.24 $58.62 Tangible book value per common share (non-GAAP) (I/M) $50.23 $50.18 $49.70 $49.16 $47.48 Reconciliation of Non-GAAP Pre-Tax, Pre-Provision Income and Pre-Tax, Pre-Provision, Pre-MSR Adjustment Income ($ in Thousands): Income before taxes $ 30,703 $ 87,083 $ 116,682 $ 134,601 $ 110,173 $ 117,786 $ 228,818 Add: Provision for credit losses 135,053 52,961 7,826 10,834 24,580 188,014 35,204 Pre-tax income, excluding provision for credit losses (non- GAAP) $ 165,756 $ 140,044 $ 124,508 $ 145,435 $ 134,753 $ 305,800 $ 264,022 Less: MSR valuation adjustment, net of (loss)/gain on derivative contract held as an economic hedge (7,393) (10,397) 1,846 (3,976) (3,385) (17,790) (12,129) Pre-tax income, excluding provision for credit losses and MSR valuation adjustments (non-GAAP) $ 173,149 $ 150,441 $ 122,662 $ 149,411 $ 138,138 $ 323,590 $ 276,151 The accounting and reporting policies of Wintrust conform to generally accepted accounting principles (“GAAP”) in the United States and prevailing practices in the banking industry. However, certain non- GAAP performance measures and ratios are used by management to evaluate and measure the Company’s performance. Management believes that these measures and ratios provide users of the Company’s financial information a more meaningful view of the performance of the Company's interest-earning assets and interest-bearing liabilities and of the Company’s operating efficiency. Other financial holding companies may define or calculate these measures and ratios differently. 18

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, such as the impacts of the COVID-19 pandemic, and which may include, but are not limited to, those listed below and the Risk Factors discussed under Item 1A of the Company’s 2019 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: • the severity, magnitude and duration of the COVID-19 pandemic 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 loan 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; • 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; 19

Forward-Looking Statements • 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; • 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; • the expenses and delayed returns inherent in opening new branches and de novo banks; • examinations and challenges by tax authorities, and any unanticipated impact of the Tax Act; • changes in accounting standards, rules and interpretations such as the new CECL standard and related changes to address the impact of COVID-19, 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 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. 20

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