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Wintrust Financial Corporation Reports Second Quarter 2022 Results

ROSEMONT, Ill., July 20, 2022 (GLOBE NEWSWIRE) -- Wintrust Financial Corporation (“Wintrust”, “the Company”, “we” or “our”) (Nasdaq: WTFC) announced net income of $94.5 million or $1.49 per diluted common share for the second quarter of 2022, a decrease in diluted earnings per common share of 28% compared to the first quarter of 2022. The Company recorded net income of $221.9 million or $3.56 per diluted common share for the first six months of 2022 compared to net income of $258.3 million or $4.24 per diluted common share for the same period of 2021. Pre-tax, pre-provision income (non-GAAP) for the first six months of 2022 totaled $329.9 million up 14% from $290.4 million in the first six months of 2021.

Edward J. Wehmer, Founder and Chief Executive Officer, commented, “I am pleased with the second quarter results which exhibited strong earnings momentum and core fundamentals. The second quarter is a turning point for Wintrust as our net interest income and margin expanded meaningfully and remain poised for future growth. Additionally, the Company experienced exceptional, diversified growth in our loan portfolio while maintaining historically good credit metrics.”

Highlights of the Second Quarter of 2022:
Comparative information to the first quarter of 2022

  • Total loans, excluding Paycheck Protection Program (“PPP”) loans, increased by $1.9 billion, or 22% on an annualized basis. In addition, total loans as of June 30, 2022 were $1.2 billion higher than average total loans in the second quarter of 2022 which is expected to benefit future quarters.

    • Core loans increased by $910 million and niche loans increased by $1.0 billion.

    • PPP loans declined by $172 million in the second quarter of 2022 primarily as a result of processing forgiveness payments.

  • Total assets increased by $719 million totaling $51.0 billion as of June 30, 2022 and total deposits increased by $374 million.

  • Net interest income increased by $38.5 million due to improvement in net interest margin.

    • Net interest margin increased by 32 basis points primarily due to increasing loan yields and the deployment of liquidity to fund loan growth.

  • Recorded a provision for credit losses of $20.4 million in the second quarter of 2022 primarily related to loan growth and $9.5 million of net charge-offs or 11 basis points on an annualized basis as compared to a provision for credit losses of $4.1 million in the first quarter of 2022.

  • The allowance for credit losses on our core loan portfolio is approximately 1.31% of the outstanding balance as of June 30, 2022 unchanged from March 31, 2022. See Table 12 for more information.

  • Non-performing loans remained historically low but increased to 0.20% of total loans, as of June 30, 2022, up from a record low of 0.16% as of March 31, 2022.

  • Mortgage banking revenue decreased to $33.3 million for the second quarter of 2022 as compared to $77.2 million in the first quarter of 2022.

    • The Company recorded a net benefit of $445,000 related to essentially offsetting changes in the value of two mortgage assets in the second quarter of 2022. This consisted of a $9.1 million increase in the value of mortgage servicing rights (“MSR”) related to changes in fair value model assumptions and a negative $8.7 million valuation related adjustment on the Company’s portfolio of early buy-out exercised loans guaranteed by U.S. government agencies which are held at fair value. The change in value recorded in the first quarter of 2022 related to these two mortgage assets was a $43.4 million increase in value.

  • Net losses on investment securities totaled $7.8 million in the second quarter of 2022 related to changes in the value of equity securities as compared to net losses of $2.8 million in the first quarter of 2022.

  • Recorded $2.5 million of losses in other non-interest income related to the sale of a property no longer considered for future expansion and the anticipated sale of a former data processing facility.

  • Completed a common stock offering of 3,450,000 shares, generating proceeds, net of estimated issuance costs, of $285.7 million.

  • Tangible book value per common share (non-GAAP) increased to $59.87 as of June 30, 2022 as compared to $59.34 as of March 31, 2022. See Table 18 for reconciliation of non-GAAP measures.

Mr. Wehmer continued, “The Company experienced robust loan growth as loans, excluding PPP loans, increased by $1.9 billion or 22% on an annualized basis in the second quarter of 2022. We continue to pick up new market share and grow organically as all of our material loan portfolios exhibited good growth in the second quarter of 2022. We remain prudent in our review of credit prospects ensuring our loan growth stays within our conservative credit standards. The loan growth experienced in the second quarter of 2022 provides strong momentum for future quarters as total loans as of June 30, 2022 were $1.2 billion higher than average total loans in the second quarter of 2022. Our loans to deposits ratio ended the quarter at 87.0% and we believe that we have sufficient liquidity to meet customer loan demand.”

Mr. Wehmer commented, “Net interest income increased by $38.5 million in the second quarter of 2022 primarily due to improvement in net interest margin. Net interest margin increased by 32 basis points as the repricing of earning assets has significantly outpaced deposit rate changes. Additionally, asset mix improved as excess liquidity was deployed to fund loan growth. We believe, subject to a material change in the consensus projection of interest rates as of this release date, that our net interest margin will continue to expand in the third and fourth quarters of 2022 and could approach 3.50% by the end of 2022.”

Mr. Wehmer noted, “We recorded mortgage banking revenue of $33.3 million in the second quarter of 2022 as compared to $77.2 million in the first quarter of 2022. Loan volumes originated for sale in the second quarter of 2022 were $821 million, down from $896 million in the first quarter of 2022. However, production margin increased to 2.21% in the second quarter of 2022 as compared to 1.67% in the first quarter of 2022. In the second quarter of 2022, the increase in the value of mortgage servicing rights related to changes in fair value model assumptions was essentially offset by valuation related adjustments on the Company’s portfolio of early buy-out exercised loans guaranteed by U.S. government agencies which we expect will serve as a partial economic hedge of the mortgage servicing rights in future periods. By comparison, there was a $43.4 million benefit recognized in the first quarter of 2022 related to the change in fair value of mortgage servicing rights. We are focused on expanding our market share of purchase originations and finding efficiencies in our delivery channels to reduce costs in light of current market conditions. Based on limited inventory and elevated mortgage rates, we expect that mortgage originations in the third quarter of 2022 will decline relative to the second quarter of 2022. However, the impact of such decline on earnings is expected to be small relative to the anticipated growth in net interest income.”

Commenting on credit quality, Mr. Wehmer stated, "While uncertain economic conditions may persist in the coming quarters, Wintrust is confident in our ability to navigate such conditions especially given our current credit quality metrics. Non-performing loans comprise only 0.20% of total loans, as of June 30, 2022. The Company recorded a provision for credit losses of $20.4 million in the second quarter of 2022, in part related to $9.5 million of net charge-offs and strong loan growth recorded in the quarter. The allowance for credit losses on our core loan portfolio as of June 30, 2022 is approximately 1.31% of the outstanding balance. We believe that the Company’s reserves remain appropriate and we remain diligent in our review of credit.”

Mr. Wehmer concluded, “Our second quarter of 2022 results continued to demonstrate the multi-faceted nature of our business model which we believe uniquely positions us to be successful. We expect to leverage our differentiated, diversified loan portfolio to outperform peers with respect to loan growth which should allow us to continue to expand net interest income. We are focused on taking advantage of market opportunities to prudently deploy excess liquidity into earning assets including core and niche loans and investment securities while maintaining an interest rate sensitive asset portfolio. We are opportunistically evaluating the acquisition market which has been active for both banks and business lines of various sizes. Of course, we remain diligent in our consideration of acquisition targets and intend to be prudent in our decision making, always seeking to minimize dilution.”

The graphs below illustrate certain financial highlights of the second quarter of 2022 as well as historical financial performance. See “Supplemental Non-GAAP Financial Measures/Ratios” at Table 18 for additional information with respect to non-GAAP financial measures/ratios, including the reconciliations to the corresponding GAAP financial measures/ratios.

Graphs available at the following link: http://ml.globenewswire.com/Resource/Download/9f62312c-504c-47a9-9a3b-cf0218d4588c

SUMMARY OF RESULTS:

BALANCE SHEET

Total loans, excluding PPP loans, increased by $1.9 billion as core loans increased by $910 million and niche loans increased by $1.0 billion. See Table 1 for more information. As of June 30, 2022, virtually all of the PPP loan balances were forgiven with only $82 million remaining on balance sheet.

Total liabilities increased $483 million in the second quarter of 2022 resulting primarily from a $374 million increase in total deposits. The increase in deposits was due to a $267 million increase in interest-bearing deposits and $107 million increase in non-interest-bearing deposits. The Company's loans to deposits ratio ended the quarter at 87.0%. Management believes in substantially funding the Company's balance sheet with core deposits and utilizes brokered or wholesale funding sources on a limited basis 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 2022, net interest income totaled $337.8 million, an increase of $38.5 million as compared to the first quarter of 2022. The $38.5 million increase in net interest income in the second quarter of 2022 compared to the first quarter of 2022 was primarily due to improvement in net interest margin. The Company recognized $4.5 million of PPP fee accretion in the second quarter of 2022 as compared to $6.5 million in the first quarter of 2022. As of June 30, 2022, the Company had approximately $2.1 million of net PPP loan fees that have yet to be recognized in income.

Net interest margin was 2.92% (2.93% on a fully taxable-equivalent basis, non-GAAP) during the second quarter of 2022 compared to 2.60% (2.61% on a fully taxable-equivalent basis, non-GAAP) during the first quarter of 2022. The net interest margin increase as compared to the first quarter of 2022 was due to a 36 basis point increase in yield on earning assets and a three basis point increase in net free funds contribution. These improvements were partially offset by a seven basis point increase in the rate paid on interest-bearing liabilities. The 36 basis point increase in the yield on earning assets in the second quarter of 2022 as compared to the first quarter of 2022 was primarily due to a 26 basis point improvement on loan yields and a higher liquidity management asset yield as the Company earned higher yields on interest-bearing deposits with banks. The seven basis point increase in the rate paid on interest-bearing liabilities in the second quarter of 2022 as compared to the first quarter of 2022 is primarily due to a six basis point increase in the rate paid on interest-bearing deposits primarily related to the increasing rate environment.

Wintrust remains in an asset-sensitive interest rate position. Based on modeled contractual cash flows, including prepayment assumptions, approximately 80% of our current loan balances are projected to reprice or mature in the next 12 months.

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

ASSET QUALITY

The allowance for credit losses totaled $312.2 million as of June 30, 2022, an increase of $10.9 million as compared to $301.3 million as of March 31, 2022. A provision for credit losses totaling $20.4 million was recorded for the second quarter of 2022 as compared to $4.1 million recorded in the first quarter of 2022. For more information regarding the provision for credit losses, see Table 11 in this report.

Management believes the allowance for credit losses is appropriate to account for expected credit losses. The Current Expected Credit Losses (“CECL”) accounting standard requires the Company to estimate expected credit losses over the life of the Company’s financial assets as of the reporting date. There can be no assurances, however, that future losses will not significantly exceed the amounts provided for, thereby affecting future results of operations. A summary of the allowance for credit losses calculated for the loan components in each portfolio as of June 30, 2022, March 31, 2022, and December 31, 2021 is shown on Table 12 of this report.

Net charge-offs totaled $9.5 million in the second quarter of 2022, as compared to $2.5 million of net charge-offs in the first quarter of 2022. Net charge-offs as a percentage of average total loans were reported as 11 basis points in the second quarter of 2022 on an annualized basis compared to three basis points on an annualized basis in the first quarter of 2022. For more information regarding net charge-offs, see Table 10 in this report.

The Company’s delinquency rates remain low and manageable. For more information regarding past due loans, see Table 13 in this report.

The ratio of non-performing assets to total assets was 0.16% as of June 30, 2022, compared to 0.13% at March 31, 2022. Non-performing assets totaled $79.2 million at June 30, 2022, compared to $63.5 million at March 31, 2022. Non-performing loans totaled $72.4 million, or 0.20% of total loans, at June 30, 2022 compared to $57.3 million, or 0.16% of total loans, at March 31, 2022. Other real estate owned (“OREO”) totaled $6.8 million at June 30, 2022, an increase of $0.6 million compared to $6.2 million at March 31, 2022. 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 remained relatively unchanged at $31.4 million for both the second quarter of 2022 and first quarter of 2022. Wealth management revenue is comprised of the trust and asset management revenue of The Chicago Trust Company and Great Lakes Advisors, the brokerage commissions, managed money fees and insurance product commissions at Wintrust Investments and fees from tax-deferred like-kind exchange services provided by the Chicago Deferred Exchange Company.

Mortgage banking revenue decreased by $43.9 million in the second quarter of 2022 as compared to the first quarter of 2022. The Company recorded a net benefit of $445,000 related to essentially offsetting changes in the value of two mortgage assets in the second quarter of 2022. This consisted of a $9.1 million increase in the value of mortgage servicing rights related to changes in fair value model assumptions and a negative $8.7 million valuation related adjustment on the Company’s portfolio of early buy-out exercised loans guaranteed by U.S. government agencies which are held at fair value. Whereas, the change in value recorded in the first quarter of 2022 related to these two mortgage assets was a $43.4 million increase in value. Production revenue increased by $2.9 million in the second quarter of 2022 as compared to the first quarter of 2022 as production margin rebounded, increasing to 2.21% in the second quarter of 2022 as compared to 1.67% in the first quarter of 2022. Loans originated for sale were $821 million in the second quarter of 2022, a decrease of $75 million as compared to the first quarter of 2022. The percentage of origination volume from refinancing activities was 22% in the second quarter of 2022 as compared to 47% in the first quarter of 2022. Mortgage banking revenue includes revenue from activities related to originating, selling and servicing residential real estate loans for the secondary market.

During the second quarter of 2022, the fair value of the mortgage servicing rights portfolio increased primarily due to the capitalization of $11.2 million and fair value adjustment increase of $9.1 million. These increases were partially offset by a reduction in value of $6.8 million due to payoffs and paydowns of the existing portfolio.

The Company recorded $1.1 million of fees from covered call options in the second quarter of 2022 as compared to $3.7 million in the first quarter of 2022. The Company has typically written call options with terms of less than three months against certain U.S. Treasury and agency securities held in its portfolio for liquidity and other purposes. Management has entered into these transactions with the goal of economically hedging security positions and enhancing its overall return on its investment portfolio by using fees generated from these options to compensate for net interest margin compression. These option transactions are designed to mitigate overall interest rate risk and do not qualify as hedges pursuant to accounting guidance.

Trading gains totaled $176,000 in the second quarter of 2022 as compared to a gain of $3.9 million recognized in the first quarter of 2022. Trading gains in the first quarter of 2022 related primarily to a favorable market value adjustment on an interest rate cap derivative which was held as an economic hedge for potentially rising interest rates.

The Company recognized net losses on investment securities of $7.8 million in the second quarter of 2022 as compared to net losses of $2.8 million recognized in the first quarter of 2022.

Other non-interest income decreased $4.6 million in the second quarter of 2022 as compared to the first quarter of 2022 primarily due to $2.5 million of losses relating to the sale of a property no longer considered for future expansion and the anticipated sale of a former data processing facility. Other declines in the second quarter of 2022 as compared to the first quarter of 2022 include lower interest rate swap fees, market losses on BOLI investments related to non-qualified deferred compensation accounts recorded in BOLI income and less partnership investment income.

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

NON-INTEREST EXPENSE

Salaries and employee benefits expense decreased by $5.0 million in the second quarter of 2022 as compared to the first quarter of 2022. The $5.0 million decrease is primarily related to decreased incentive compensation expense.

Advertising and marketing expenses in the second quarter of 2022 increased by $4.7 million as compared to the first quarter of 2022 primarily related to seasonal media advertising and sponsorship costs. Marketing costs are incurred to promote the Company's brand, commercial banking capabilities and the Company's various products, to attract loans and deposits and to announce new branch openings as well as the expansion of the Company's non-bank businesses. The level of marketing expenditures depends on the timing of sponsorship programs utilized which are determined based on the market area, targeted audience, competition and various other factors.

Miscellaneous expense in the second quarter of 2022 increased by $5.2 million as compared to the first quarter of 2022. Miscellaneous expense includes ATM expenses, correspondent bank charges, directors fees, telephone, postage, corporate insurance, dues and subscriptions, problem loan expenses and other miscellaneous operational losses and costs.

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

INCOME TAXES

The Company recorded income tax expense of $37.1 million in the second quarter of 2022 compared to $46.3 million in the first quarter of 2022. The effective tax rates were 28.21% in the second quarter of 2022 compared to 26.65% in the first quarter of 2022. The effective tax rates were partially impacted by tax effects related to share-based compensation, which fluctuate based on the Company’s stock price and timing of employee stock option exercises and vesting of other share-based awards. The Company recorded excess tax benefits of $81,000 in the second quarter of 2022, compared to excess tax benefits of $2.2 million in the first quarter of 2022 related to share-based compensation.

BUSINESS UNIT SUMMARY

Community Banking

Through its community banking unit, the Company provides banking and financial services primarily to individuals, small to mid-sized businesses, local governmental units and institutional clients residing primarily in the local areas the Company services. In the second quarter of 2022, this unit expanded its loan portfolio. The segment’s net interest income increased in the second quarter of 2022 as compared to the first quarter of 2022 due to loan growth and an increased net interest margin.

Mortgage banking revenue was $33.3 million for the second quarter of 2022, a decrease of $43.9 million as compared to the first quarter of 2022. Service charges on deposit accounts totaled $15.9 million in the second quarter of 2022, an increase of $605,000 as compared to the first quarter of 2022 primarily due to higher fees associated with commercial account activity. The Company’s gross commercial and commercial real estate loan pipelines remained robust as of June 30, 2022 indicating momentum for continued loan growth in the third quarter of 2022.

Specialty Finance

Through its specialty finance unit, the Company offers financing of insurance premiums for businesses and individuals, equipment financing through structured loans and lease products to customers in a variety of industries, accounts receivable financing and value-added, out-sourced administrative services and other services. Originations within the insurance premium financing receivables portfolio were $3.9 billion during the second quarter of 2022 and average balances increased by $531.9 million as compared to the first quarter of 2022. The Company’s leasing portfolio balance increased in the second quarter of 2022, with its portfolio of assets, including capital leases, loans and equipment on operating leases, totaling $2.6 billion as of June 30, 2022 as compared to $2.4 billion as of March 31, 2022. Revenues from the Company’s out-sourced administrative services business were $1.6 million in the second quarter of 2022, a decrease of $262,000 from the first quarter of 2022.

Wealth Management

Through four separate subsidiaries within its wealth management unit, the Company offers a full range of wealth management services, including trust and investment services, tax-deferred like-kind exchange services, asset management, securities brokerage services and 401(k) and retirement plan services. Wealth management revenue totaled $31.4 million in the second quarter of 2022, relatively unchanged compared to the first quarter of 2022. At June 30, 2022, the Company’s wealth management subsidiaries had approximately $32.9 billion of assets under administration, which included $6.8 billion of assets owned by the Company and its subsidiary banks, representing a $2.9 billion decrease from the $35.8 billion of assets under administration at March 31, 2022. The decrease in assets under administration experienced in the second quarter of 2022 as compared to the first quarter of 2022 is primarily due to reduced equity and fixed income asset values.

ITEMS IMPACTING COMPARATIVE FINANCIAL RESULTS

Common Stock Offering

In June 2022, the Company sold through a public offering a total of 3,450,000 shares of its common stock. Net proceeds to the Company totaled approximately $285.7 million, net of estimated issuance costs.

Insurance Agency Loan Portfolio

On November 15, 2021, the Company completed its acquisition of certain assets from The Allstate Corporation (“Allstate”). Through this business combination, the Company acquired approximately $581.6 million of loans, net of allowance for credit losses measured on the acquisition date. The loan portfolio was comprised of approximately 1,800 loans to Allstate agents nationally. In addition to acquiring the loans, the Company became the national preferred provider of loans to Allstate agents. In connection with the loan acquisition, a team of Allstate agency lending specialists joined the Company, to augment and expand Wintrust’s existing insurance agency finance business. As the transaction was determined to be a business combination, the Company recorded goodwill of approximately $9.3 million on the purchase.

WINTRUST FINANCIAL CORPORATION

Key Operating Measures

Wintrust’s key operating measures and growth rates for the second quarter of 2022, as compared to the first quarter of 2022 (sequential quarter) and second quarter of 2021 (linked quarter), are shown in the table below:

% or(1)
basis point (bp) change from
1st Quarter
2022

% or
basis point (bp) change from
2nd Quarter
2021

Three Months Ended

(Dollars in thousands, except per share data)

Jun 30, 2022

Mar 31, 2022

Jun 30, 2021

Net income

$

94,513

$

127,391

$

105,109

(26

)

%

(10

)

%

Pre-tax income, excluding provision for credit losses (non-GAAP)(2)

152,078

177,786

128,851

(14

)

18

Net income per common share – diluted

1.49

2.07

1.70

(28

)

(12

)

Cash dividends declared per common share

0.34

0.34

0.31

10

Net revenue(3)

440,746

462,084

408,963

(5

)

8

Net interest income

337,804

299,294

279,590

13

21

Net interest margin

2.92

%

2.60

%

2.62

%

32

bps

30

bps

Net interest margin – fully taxable-equivalent (non-GAAP)(2)

2.93

2.61

2.63

32

30

Net overhead ratio(4)

1.51

1.00

1.32

51

19

Return on average assets

0.77

1.04

0.92

(27

)

(15

)

Return on average common equity

8.53

11.94

10.24

(341

)

(171

)

Return on average tangible common equity (non-GAAP)(2)

10.36

14.48

12.62

(412

)

(226

)

At end of period

Total assets

$

50,969,332

$

50,250,661

$

46,738,450

6

%

9

%

Total loans(5)

37,053,103

35,280,547

32,911,187

20

13

Total deposits

42,593,326

42,219,322

38,804,616

4

10

Total shareholders’ equity

4,727,623

4,492,256

4,339,011

21

9

(1)

Period-end balance sheet percentage changes are annualized.

(2)

See “Supplemental Non-GAAP Financial Measures/Ratios” at Table 18 for additional information on this performance measure/ratio.

(3)

Net revenue is net interest income plus non-interest income.

(4)

The net overhead ratio is calculated by netting total non-interest expense and total non-interest income, annualizing this amount, and dividing by that period’s average total assets. A lower ratio indicates a higher degree of efficiency.

(5)

Excludes mortgage loans held-for-sale.

Certain returns, yields, performance ratios, or quarterly growth rates are “annualized” in this presentation to represent an annual time period. This is done for analytical purposes to better discern, for decision-making purposes, underlying performance trends when compared to full-year or year-over-year amounts. For example, a 5% growth rate for a quarter would represent an annualized 20% growth rate. Additional supplemental financial information showing quarterly trends can be found on the Company’s website at www.wintrust.com by choosing “Financial Reports” under the “Investor Relations” heading, and then choosing “Financial Highlights.”

WINTRUST FINANCIAL CORPORATION
Selected Financial Highlights

Three Months Ended

Six Months Ended

(Dollars in thousands, except per share data)

Jun 30, 2022

Mar 31, 2022

Dec 31, 2021

Sep 30, 2021

Jun 30, 2021

Jun 30, 2022

Jun 30, 2021

Selected Financial Condition Data (at end of period):

Total assets

$

50,969,332

$

50,250,661

$

50,142,143

$

47,832,271

$

46,738,450

Total loans(1)

37,053,103

35,280,547

34,789,104

33,264,043

32,911,187

Total deposits

42,593,326

42,219,322

42,095,585

39,952,558

38,804,616

Total shareholders’ equity

4,727,623

4,492,256

4,498,688

4,410,317

4,339,011

Selected Statements of Income Data:

Net interest income

$

337,804

$

299,294

$

295,976

$

287,496

$

279,590

$

637,098

$

541,485

Net revenue(2)

440,746

462,084

429,743

423,970

408,963

902,830

857,364

Net income

94,513

127,391

98,757

109,137

105,109

221,904

258,257

Pre-tax income, excluding provision for credit losses (non-GAAP)(3)

152,078

177,786

146,344

141,826

128,851

329,864

290,363

Net income per common share – Basic

1.51

2.11

1.61

1.79

1.72

3.61

4.29

Net income per common share – Diluted

1.49

2.07

1.58

1.77

1.70

3.56

4.24

Cash dividends declared per common share

0.34

0.34

0.31

0.31

0.31

0.68

0.62

Selected Financial Ratios and Other Data:

Performance Ratios:

Net interest margin

2.92

%

2.60

%

2.54

%

2.58

%

2.62

%

2.76

%

2.58

%

Net interest margin – fully taxable-equivalent (non-GAAP)(3)

2.93

2.61

2.55

2.59

2.63

2.77

2.59

Non-interest income to average assets

0.84

1.33

1.08

1.15

1.13

1.08

1.40

Non-interest expense to average assets

2.35

2.33

2.29

2.37

2.45

2.34

2.51

Net overhead ratio(4)

1.51

1.00

1.21

1.22

1.32

1.25

1.11

Return on average assets

0.77

1.04

0.80

0.92

0.92

0.91

1.15

Return on average common equity

8.53

11.94

9.05

10.31

10.24

10.22

12.97

Return on average tangible common equity (non-GAAP)(3)

10.36

14.48

11.04

12.62

12.62

12.40

15.99

Average total assets

$

49,353,426

$

49,501,844

$

49,118,777

$

47,192,510

$

45,946,751

$

49,427,225

$

45,470,389

Average total shareholders’ equity

4,526,110

4,500,460

4,433,953

4,343,915

4,256,778

4,513,356

4,211,088

Average loans to average deposits ratio

86.8

%

83.8

%

81.7

%

83.8

%

86.7

%

85.3

%

86.9

%

Period-end loans to deposits ratio

87.0

83.6

82.6

83.3

84.8

Common Share Data at end of period:

Market price per common share

$

80.15

$

92.93

$

90.82

$

80.37

$

75.63

Book value per common share

71.06

71.26

71.62

70.19

68.81

Tangible book value per common share (non-GAAP)(3)

59.87

59.34

59.64

58.32

56.92

Common shares outstanding

60,721,889

57,253,214

57,054,091

56,956,026

57,066,677

Other Data at end of period:

Tier 1 leverage ratio(5)

8.8

%

8.1

%

8.0

%

8.1

%

8.2

%

Risk-based capital ratios:

Tier 1 capital ratio(5)

9.9

9.6

9.6

9.9

10.1

Common equity tier 1 capital ratio(5)

9.0

8.6

8.6

8.9

9.0

Total capital ratio(5)

11.8

11.6

11.6

12.1

12.4

Allowance for credit losses(6)

$

312,192

$

301,327

$

299,731

$

296,138

$

304,121

Allowance for loan and unfunded lending-related commitment losses to total loans

0.84

%

0.85

%

0.86

%

0.89

%

0.92

%

Number of:

Bank subsidiaries

15

15

15

15

15

Banking offices

173

174

173

172

172

(1)

Excludes mortgage loans held-for-sale.

(2)

Net revenue is net interest income and non-interest income.

(3)

See “Supplemental Non-GAAP Financial Measures/Ratios” at Table 18 for additional information on this performance measure/ratio.

(4)

The net overhead ratio is calculated by netting total non-interest expense and total non-interest income, annualizing this amount, and dividing by that period’s average total assets. A lower ratio indicates a higher degree of efficiency.

(5)

Capital ratios for current quarter-end are estimated.

(6)

The allowance for credit losses includes the allowance for loan losses, the allowance for unfunded lending-related commitments and the allowance for held-to-maturity securities losses.


WINTRUST FINANCIAL CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CONDITION

(Unaudited)

(Unaudited)

(Unaudited)

(Unaudited)

Jun 30,

Mar 31,

Dec 31,

Sep 30,

Jun 30,

(In thousands)

2022

2022

2021

2021

2021

Assets

Cash and due from banks

$

498,891

$

462,516

$

411,150

$

462,244

$

434,957

Federal funds sold and securities purchased under resale agreements

475,056

700,056

700,055

55

52

Interest-bearing deposits with banks

3,266,541

4,013,597

5,372,603

5,232,315

4,707,415

Available-for-sale securities, at fair value

2,970,121

2,998,898

2,327,793

2,373,478

2,188,608

Held-to-maturity securities, at amortized cost

3,413,469

3,435,729

2,942,285

2,736,722

2,498,232

Trading account securities

1,010

852

1,061

1,103

2,667

Equity securities with readily determinable fair value

93,295

92,689

90,511

88,193

86,316

Federal Home Loan Bank and Federal Reserve Bank stock

136,138

136,163

135,378

135,408

136,625

Brokerage customer receivables

21,527

22,888

26,068

26,378

23,093

Mortgage loans held-for-sale

513,232

606,545

817,912

925,312

984,994

Loans, net of unearned income

37,053,103

35,280,547

34,789,104

33,264,043

32,911,187

Allowance for loan losses

(251,769

)

(250,539

)

(247,835

)

(248,612

)

(261,089

)

Net loans

36,801,334

35,030,008

34,541,269

33,015,431

32,650,098

Premises, software and equipment, net

762,381

761,213

766,405

748,872

752,375

Lease investments, net

223,813

240,656

242,082

243,933

219,023

Accrued interest receivable and other assets

1,112,697

1,066,750

1,084,115

1,166,917

1,185,811

Trade date securities receivable

189,851

Goodwill

654,709

655,402

655,149

645,792

646,336

Other acquisition-related intangible assets

25,118

26,699

28,307

30,118

31,997

Total assets

$

50,969,332

$

50,250,661

$

50,142,143

$

47,832,271

$

46,738,450

Liabilities and Shareholders’ Equity

Deposits:

Non-interest-bearing

$

13,855,844

$

13,748,918

$

14,179,980

$

13,255,417

$

12,796,110

Interest-bearing

28,737,482

28,470,404

27,915,605

26,697,141

26,008,506

Total deposits

42,593,326