Wintrust Financial Corporation Reports Third Quarter and Year-to-Date 2015 Net Income

ROSEMONT, Ill., Oct. 14, 2015 (GLOBE NEWSWIRE) -- Wintrust Financial Corporation (“Wintrust” or “the Company”) (Nasdaq:WTFC) announced net income of $38.4 million or $0.69 per diluted common share for the third quarter of 2015 compared to net income of $43.8 million or $0.85 per diluted common share for the second quarter of 2015 and $40.2 million or $0.79 per diluted common share for the third quarter of 2014. The Company recorded net income of $121.2 million or $2.29 per diluted common share for the first nine months of 2015 compared to net income of $113.3 million or $2.23 per diluted common share for the same period of 2014. Operating net income was $41.8 million or $0.75 per diluted common share for the third quarter of 2015 compared to $44.5 million or $0.86 per diluted common share in the second quarter of 2015. Operating net income excludes acquisition related charges totaling $5.7 million and $1.1 million in the third quarter of 2015 and second quarter of 2015, respectively. A table reconciling net income as reported to operating net income is set forth below and additional detail is shown in the "Supplemental Financial Measures/Ratios" section.

Highlights compared with the Second Quarter of 2015*:                

• Total loans, excluding covered loans and mortgage loans held-for-sale, increased by $803 million, or 21% on annualized basis, to $16.3 billion, which included $455 million of loans acquired in relation to the bank acquisitions during the period
  
• Total assets increased by 24% on an annualized basis to $22.0 billion
  
• Total deposits increased by $1.1 billion, or 27% on an annualized basis, to $18.2 billion, which included $802 million assumed from the bank acquisitions during the period
  
• Demand deposits comprise 26% of total deposits, increasing from 23% in the second quarter of 2015
  
• Net interest margin decreased 8 basis points primarily as a result of lower yields on earning assets due to pricing pressure and the low rate environment
  
• Maintained strong capital ratios with a tangible common equity ratio, assuming full conversion of convertible preferred stock, of 8.0%
  
• Dividend on Series D preferred stock, issued in June 2015, reduced earnings per diluted common share by $0.04 per share
  
• Completed the acquisitions of North Bank, Suburban Illinois Bancorp, Inc. and Community Financial Shares, Inc.
  
• Acquisition-related charges totaled $5.7 million, reducing earnings per diluted common share by $0.06 per share
  
• Opened new banking location in Aurora, Illinois along with the locations acquired, increasing our total banking locations to 160 locations
  
  

		Three Months Ended,													Nine Months Ended,
		September 30,				June 30,				March 31,					September 30,
(Dollars in thousands, except per share data)		2015				2015				2015					2015
Key Operating Measures, Adjusted for Acquisition Related Charges
Net income per common share – diluted		$	0.75			$	0.86			$	0.77				$	2.38
Net overhead ratio		1.63		%		1.51		%		1.68		%			1.61		%
Efficiency ratio		66.67		%		65.16		%		67.56		%			66.43		%
Return on average assets		0.76		%		0.88		%		0.81		%			0.82		%
Return on average common equity		7.26		%		8.52		%		7.73		%			7.82		%
Return on average tangible common equity		9.73		%		11.03		%		10.07		%			10.26		%
Net income, as reported		$	38,355			$	43,831			$	39,052				$	121,238
Acquisition Related Charges
Salaries and employee benefits:
Salaries		$	1,355			$	—			$	12				$	1,367
Commissions and incentive compensation		264				—				3					267
Benefits		107				—				—					107
Total salaries and employee benefits		1,726				—				15					1,741
Equipment		36				32				—					68
Occupancy, net		201				—				16					217
Data processing		2,692				653				130					3,475
Advertising and marketing		1				—				5					6
Professional fees		335				417				568					1,320
Other expense		5				21				4					30
Other income		(674		)		—				—					(674		)
Total Acquisition Related Charges		$	5,670			$	1,123			$	738				$	7,531
Income tax expense on acquisition related charges		$	2,225			$	441			$	290				$	2,956
Acquisition related charges, net of tax		$	3,445			$	682			$	448				$	4,575
Operating net income		$	41,800			$	44,513			$	39,500				$	125,813

* See "Supplemental Financial Measures/Ratios" on pages 16-18 for more information on non-GAAP measures.

Edward J. Wehmer, President and Chief Executive Officer, commented, “Wintrust reported operating net income of $41.8 million for the third quarter of 2015 and operating net income of $125.8 million on a year-to-date basis. The third quarter of 2015 was characterized by continued strong loan and deposit growth coupled with compression in our net interest margin, stable credit quality metrics, decreased mortgage banking revenue, the acquisitions of North Bank, Suburban Illinois Bancorp, Inc. and Community Financial Shares, Inc. and the costs related to these acquisitions."

Mr. Wehmer continued, “Excluding covered loans and mortgage loans held-for-sale, we grew our loan portfolio by $803 million in the third quarter, which included $455 million of loans acquired in relation to the three bank acquisitions. This increase in loan volume helped offset the impact on net interest income from net interest margin compression experienced during the quarter from competitive pricing pressures and the continued low rate environment. Our average loan to deposit ratio declined to 91.9% in the third quarter of 2015 compared to 92.8% in the second quarter of 2015 as the three acquisitions combined had a loan to deposit ratio of only 56.7%. Our loan pipelines remain consistently strong. Deposits in the third quarter of 2015 increased $1.1 billion, which included $802 million assumed from the bank acquisitions during the period. Demand deposits increased $796 million and now comprise 26% of our overall deposit base compared to 23% at the end of the second quarter of 2015."

Commenting on credit quality, Mr. Wehmer noted, “Total non-performing assets increased by $19.2 million. This increase was comprised of $4.6 million of OREO related to the three acquisitions completed in July, $7.3 million transferring from covered OREO as the loss sharing period expired, a single customer relationship totaling $9.3 million being placed in nonaccrual status at quarter-end, and other activities.  Excluding covered loans, non-performing loans as a percentage of total loans was 0.53% at the end of the third quarter. The allowance for loan losses as a percentage of non-performing loans, excluding covered loans, remained strong at 120%, exhibiting sufficient coverage for non-performing credits. We believe that the Company's reserves remain appropriate."

Mr. Wehmer further commented, “Mortgage banking revenue in the third quarter totaled $27.9 million, a decrease of $8.1 million compared to the second quarter of 2015 and an increase of $1.2 million compared to the third quarter of 2014. The decrease from the second quarter to the third quarter of 2015 resulted from origination volumes declining to $973.7 million from $1.2 billion and unfavorable changes in product and channel mix, both combined with more competitive pricing.  Our mortgage banking business remains well positioned for growth both organically and through acquisitions."

Turning to the future, Mr. Wehmer stated, “We anticipate approximately $4 million in additional charges related to the three previously announced acquisitions in July over the next two quarters as the conversions and integrations are completed. This is in addition to the $5.7 million of various charges incurred in the third quarter related to these acquisitions. The cost savings from these transactions have exceeded our initial expectations.  We believe we have achieved approximately two-thirds of our expected annual cost savings to date and expect to realize additional annual cost savings of approximately $5 million by the end of the first quarter of 2016. We remain on track to realize cost savings opportunities in the future from our existing infrastructure as additional acquisition opportunities exist in all areas of our business lines. Evaluating strategic acquisitions and organic branch growth will continue to be a part of our overall growth strategy with the goal of becoming Chicago’s bank and Wisconsin’s bank. Our opportunities for both internal growth and external growth remain consistently strong. We continue to take a steady and measured approach to achieve our main objectives of growing franchise value, increasing profitability, leveraging our expense infrastructure and increasing shareholder value."

Graphs accompanying this release are available at http://www.globenewswire.com/NewsRoom/AttachmentNg/673e6825-ff7f-48d9-9801-a6bf5134cb26

Wintrust’s key operating measures and growth rates for the third quarter of 2015, as compared to the sequential and linked quarters, are shown in the table below:

														% or(5) basis point  (bp) change from 2nd Quarter 2015				% or basis point  (bp) change from 3rd Quarter 2014
		Three Months Ended
(Dollars in thousands)		September 30, 2015				June 30,  2015				September 30,  2014
Net income		$	38,355			$	43,831			$	40,224			(12	)	%		(5	)	%
Net income per common share – diluted		$	0.69			$	0.85			$	0.79			(19	)	%		(13	)	%
Net revenue (1)		$	230,493			$	233,905			$	209,622			(1	)	%		10		%
Net interest income		$	165,540			$	156,892			$	151,670			6		%		9		%
Net interest margin (2)		3.33		%		3.41		%		3.46		%		(8	)	bp		(13	)	bp
Net overhead ratio (2) (3)		1.74		%		1.53		%		1.67		%		21		bp		7		bp
Efficiency ratio (2) (4)		69.02		%		65.64		%		65.76		%		338		bp		326		bp
Return on average assets		0.70		%		0.87		%		0.83		%		(17	)	bp		(13	)	bp
Return on average common equity		6.60		%		8.38		%		8.09		%		(178	)	bp		(149	)	bp
Return on average tangible common equity		8.88		%		10.86		%		10.59		%		(198	)	bp		(171	)	bp
At end of period
Total assets		$	22,043,930			$	20,799,924			$	19,169,345			24		%		15		%
Total loans, excluding loans held-for-sale, excluding covered loans		$	16,316,211			$	15,513,650			$	14,052,059			21		%		16		%
Total loans, including loans held-for-sale, excluding covered loans		$	16,663,216			$	16,010,933			$	14,415,362			16		%		16		%
Total deposits		$	18,228,469			$	17,082,418			$	16,065,246			27		%		13		%
Total shareholders’ equity		$	2,335,736			$	2,264,982			$	2,028,508			12		%		15		%

(1) Net revenue is net interest income plus non-interest income.

(2) See “Supplemental Financial Measures/Ratios” 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) The efficiency ratio is calculated by dividing total non-interest expense by tax-equivalent net revenue (less securities gains or losses).  A lower ratio indicates more efficient revenue generation.

(5) Period-end balance sheet percentage changes are annualized.

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 web site at www.wintrust.com by choosing “Financial Reports” under the “Investor Relations” heading, and then choosing “Financial Highlights.”

Financial Performance Overview – Third Quarter 2015

For the third quarter of 2015, net interest income totaled $165.5 million, an increase of $8.6 million as compared to the second quarter of 2015 and an increase of $13.9 million as compared to the third quarter of 2014.  The changes in net interest income on both a sequential and linked quarter basis are the result of the following:

• Net interest income increased $8.6 million in the third quarter of 2015 compared to the second quarter of 2015, due to: 
  
  
  • An increase in total interest income of $10.1 million resulting primarily from loan growth during the period and one additional day of interest, partially offset by a reduction in yield on earning assets.  
               
  • Interest expense increased $1.5 million primarily as a result of an increase in the average balance of interest-bearing liabilities, a two basis point increase in the rate on average interest bearing liabilities and one additional day in the quarter.
    
    
  • Combined, the increase in interest income of $10.1 million and the increase in interest expense of $1.5 million created the $8.6 million increase in net interest income.
    
    
• Net interest income increased $13.9 million in the third quarter of 2015 compared to the third quarter of 2014, due to:
  
  
  • Average loans, excluding covered loans, increased by $2.1 billion.  The growth in average loans, excluding covered loans, was partially offset by a 17 basis point decline in the yield on earning assets, resulting in an increase in total interest income of $14.7 million.
    
    
  • An increase in interest bearing deposits, an increase in borrowings under the Company's term credit facility at the end of the second quarter of 2015 and the completion of the Canadian secured borrowing transaction at the end of the fourth quarter of 2014 resulted in a $834,000 increase in interest expense.
    
    
  • Combined, the increase in interest income of $14.7 million and the increase in interest expense of $834,000 created the $13.9 million increase in net interest income.
    
    

The net interest margin, on a fully taxable equivalent basis, for the third quarter of 2015 was 3.33% compared to 3.41% for the second quarter of 2015 and 3.46% for the third quarter of 2014.  The reduction in net interest margin, on a fully taxable equivalent basis, compared to the second quarter of 2015 and third quarter of 2014 is primarily the result of a decline in yields on loans and other earning assets (see "Net Interest Income" section later in this release for further detail).

Non-interest income totaled $65.0 million in the third quarter of 2015, decreasing $12.1 million, or 16%, compared to the second quarter of 2015 and increasing $7.0 million, or 12%, compared to the third quarter of 2014. The decrease in non-interest income in the third quarter of 2015 compared to the second quarter of 2015 is primarily attributable to lower mortgage banking revenue, the recognition of a $1.5 million bank owned life insurance ("BOLI") death benefit in the second quarter of 2015 and lower fees from covered call option contracts, partially offset by increased service charges on deposits.  The increase in non-interest income in the third quarter of 2015 compared to the third quarter of 2014 was primarily attributable to an increase in mortgage banking revenues, fees from covered call options, higher customer interest rate swap fees and an increase in service charges on deposits (see "Non-Interest Income" section later in this release for further detail). 

Non-interest expense totaled $160.0 million in the third quarter of 2015, increasing $5.7 million, or 4%, compared to the second quarter of 2015 and increasing $21.5 million, or 16%, compared to the third quarter of 2014.  The increase in the current quarter compared to the second quarter of 2015 can be primarily attributed to an increase in acquisition related charges, higher salary and employee benefit costs caused by the addition of employees from the various acquisitions and higher staffing levels as the Company grows, increased data processing expenses, partially offset by a decrease in OREO expenses.  The increase in the third quarter of 2015 compared to the third quarter of 2014 was primarily attributable to acquisition related charges in the current quarter, higher salary and employee benefit costs caused by the addition of employees from the various acquisitions and higher staffing levels as the Company grows as well as higher commissions and incentive compensation, increased equipment and occupancy, data processing and professional fees, and higher marketing expenses, partially offset by a decrease in OREO expenses (see "Non-Interest Expense" section later in this release for further detail). 

Financial Performance Overview – First Nine Months of 2015

For the first nine months of 2015, net interest income totaled $474.3 million, an increase of $29.5 million as compared to the first nine months of 2014 as a result of the following: 

• Average earning assets increased by $2.1 billion, primarily comprised of average loan growth, excluding covered loans, of $1.9 billion and an increase of $216.9 million in the average balance of liquidity management assets, partially offset by a decrease of $96.3 million in the average balance of covered loans. The growth in average total loans, excluding covered loans, included an increase of $691.0 million in commercial loans, $523.3 million in commercial real estate loans, $463.2 million in life insurance premium finance receivables, $99.3 million in mortgage loans held-for-sale, $88.6 million in commercial premium finance receivables and $78.1 million in home equity and other loans.
  
  
• The average earning asset growth of $2.1 billion, partially offset by a 20 basis point decrease in yield on earning assets, resulted in an increase in total interest income of $32.4 million.
  
  
• Funding mix remained relatively consistent as average demand deposits increased $982.2 million, average interest bearing deposits increased $789.3 million and average wholesale borrowings increased $125.2 million. The increase in average interest bearing liabilities, partially offset by a one basis point decline in rate during the current period, resulted in a $2.9 million increase in interest expense.
  
  
• Combined, the increase in interest income of $32.4 million and the increase in interest expense of $2.9 million created the $29.5 million increase in net interest income.
  
  

The net interest margin, on a fully taxable equivalent basis, for the first nine months of 2015 was 3.39% compared to 3.56% for the first nine months of 2014 (see "Net Interest Income" section later in this release for further detail).

Non-interest income totaled $206.5 million in the first nine months of 2015, increasing $48.9 million, or 31%, compared to the first nine months of 2014. The increase in non-interest income in the first nine months of 2015 compared to the first nine months of 2014 is primarily attributable to an increase in mortgage banking and wealth management revenues, fees from covered call options, the recognition of a $1.5 million BOLI death benefit, increased service charges and higher fees on customer interest rate swap transactions (see "Non-Interest Income" section later in this release for further detail). 

Non-interest expense totaled $461.6 million in the first nine months of 2015, increasing $58.2 million, or 14%, compared to the first nine months of 2014.  The increase in the first nine months of 2015 compared to the first nine months of 2014 was primarily attributable to acquisition related charges during the current year, higher salary and employee benefit costs caused by the addition of employees from the various acquisitions and larger staffing as the Company grows as well as higher commissions and incentive compensation, and increased equipment, occupancy, data processing and professional fees, and increased marketing expenses, partially offset by a decrease in OREO expenses (see "Non-Interest Expense" section later in this release for further detail). 

Financial Performance Overview – Credit Quality

The ratio of non-performing assets to total assets was 0.63% as of September 30, 2015, compared to 0.57% at June 30, 2015, and 0.69% at September 30, 2014.  Non-performing assets, excluding covered assets, totaled $138.0 million at September 30, 2015, compared to $118.9 million at June 30, 2015 and $131.7 million at September 30, 2014.

Non-performing loans, excluding covered loans, totaled $86.0 million, or 0.53% of total loans, at September 30, 2015, compared to $76.6 million, or 0.49% of total loans, at June 30, 2015 and $81.1 million, or 0.58% of total loans, at September 30, 2014.  The increase in non-performing loans, excluding covered loans, compared to June 30, 2015 is primarily the result of a single customer relationship totaling $9.3 million being placed in nonaccrual status at quarter-end. Compared to September 30, 2014, the increase is primarily the result of a $2.7 million increase in the home equity loan portfolio, a $1.6 million increase in the commercial loan portfolio and a $1.3 million increase in the commercial real-estate portfolio. OREO, excluding covered OREO, of $51.9 million at September 30, 2015 increased $9.8 million compared to $42.1 million at June 30, 2015 and decreased $1.5 million compared to $50.4 million at September 30, 2014. The increase in OREO, excluding covered OREO, compared to June 30, 2015 is primarily the result of the addition of properties from acquisitions and properties transferring from covered OREO as the loss sharing period expired during the period.

The provision for credit losses, excluding the provision for covered loan losses, totaled $8.7 million for the third quarter of 2015 compared to $9.7 million for the second quarter of 2015 and $6.0 million for the third quarter of 2014. The higher provision for credit losses in the third quarter of 2015 compared to the same period of 2014 was partly due to loan growth since the prior period.

Net charge-offs as a percentage of loans, excluding covered loans, for the third quarter of 2015 totaled 14 basis points on an annualized basis compared to ten basis points on an annualized basis in the second quarter of 2015 and 19 basis points on an annualized basis in the third quarter of 2014.  Net charge-offs totaled $5.7 million in the third quarter of 2015, a $1.8 million increase from $3.9 million in the second quarter of 2015 and a $1.3 million decrease from $7.0 million in the third quarter of 2014.

Excluding the allowance for covered loan losses, the allowance for credit losses at September 30, 2015 totaled $103.9 million, or 0.64% of total loans, compared to $101.1 million, or 0.65% of total loans, at June 30, 2015 and $91.8 million, or 0.65% of total loans, at September 30, 2014.  The allowance for unfunded lending-related commitments totaled $926,000 as of September 30, 2015 compared to $884,000 as of June 30, 2015 and $822,000 as of September 30, 2014. 

Financial Performance Overview – Earnings Per Share

The following table shows the computation of basic and diluted earnings per share for the periods indicated:

			Three Months Ended												Nine Months Ended
(In thousands, except per share data)			September 30, 2015				June 30, 2015				September 30, 2014				September 30, 2015				September 30, 2014
Net income			$	38,355			$	43,831			$	40,224			$	121,238			$	113,265
Less: Preferred stock dividends and discount accretion			4,079				1,580				1,581				7,240				4,743
Net income applicable to common shares—Basic	(A)		34,276				42,251				38,643				113,998				108,522
Add: Dividends on convertible preferred stock, if dilutive			1,579				1,580				1,581				4,740				4,743
Net income applicable to common shares—Diluted	(B)		35,855				43,831				40,224				118,738				113,265
Weighted average common shares outstanding	(C)		48,158				47,567				46,639				47,658				46,453
Effect of dilutive potential common shares:
Common stock equivalents			978				1,085				1,166				1,070				1,274
Convertible preferred stock, if dilutive			3,071				3,071				3,075				3,071				3,075
Weighted average common shares and effect of dilutive potential common shares	(D)		52,207				51,723				50,880				51,799				50,802
Net income per common share:
Basic	(A/C)		$	0.71			$	0.89			$	0.83			$	2.39			$	2.34
Diluted	(B/D)		$	0.69			$	0.85			$	0.79			$	2.29			$	2.23

Potentially dilutive common shares can result from stock options, restricted stock unit awards, stock warrants, the Company’s convertible preferred stock and shares to be issued under the Employee Stock Purchase Plan and the Directors Deferred Fee and Stock Plan, being treated as if they had been either exercised or issued, computed by application of the treasury stock method. While potentially dilutive common shares are typically included in the computation of diluted earnings per share, potentially dilutive common shares are excluded from this computation in periods in which the effect would reduce the loss per share or increase the income per share. For diluted earnings per share, net income applicable to common shares can be affected by the conversion of the Company’s convertible preferred stock. Where the effect of this conversion would reduce the loss per share or increase the income per share, net income applicable to common shares is not adjusted by the associated preferred dividends. Due to weighted average share differences, when stated on a quarter and year-to-date basis, the earnings per share for the year ended September 30, 2015 does not equal the sum of the respective earnings per share for the three quarters then ended. 

WINTRUST FINANCIAL CORPORATION
Selected Financial Highlights
		Three Months Ended												Nine Months Ended
(Dollars in thousands, except per share data)		September 30, 2015				June 30, 2015				September 30, 2014				September 30, 2015				September 30, 2014
Selected Financial Condition Data (at end of period):
Total assets		$	22,043,930			$	20,799,924			$	19,169,345
Total loans, excluding loans held-for-sale and covered loans		16,316,211				15,513,650				14,052,059
Total deposits		18,228,469				17,082,418				16,065,246
Junior subordinated debentures		268,566				249,493				249,493
Total shareholders’ equity		2,335,736				2,264,982				2,028,508
Selected Statements of Income Data:
Net interest income		$	165,540			$	156,892			$	151,670			$	474,323			444,856
Net revenue (1)		230,493				233,905				209,622				680,830				602,439
Net income		38,355				43,831				40,224				121,238				113,265
Net income per common share – Basic		$	0.71			$	0.89			$	0.83			$	2.39			$	2.34
Net income per common share – Diluted		$	0.69			$	0.85			$	0.79			$	2.29			$	2.23
Selected Financial Ratios and Other Data:
Performance Ratios:
Net interest margin (2)		3.33		%		3.41		%		3.46		%		3.39		%		3.56		%
Non-interest income to average assets		1.19		%		1.52		%		1.20		%		1.34		%		1.14		%
Non-interest expense to average assets		2.93		%		3.06		%		2.87		%		3.00		%		2.92		%
Net overhead ratio (2) (3)		1.74		%		1.53		%		1.67		%		1.66		%		1.78		%
Efficiency ratio (2) (4)		69.02		%		65.64		%		65.76		%		67.50		%		66.65		%
Return on average assets		0.70		%		0.87		%		0.83		%		0.79		%		0.82		%
Return on average common equity		6.60		%		8.38		%		8.09		%		7.53		%		7.86		%
Return on average tangible common equity (2)		8.88		%		10.86		%		10.59		%		9.90		%		10.25		%
Average total assets		$	21,688,450			$	20,256,996			$	19,127,346			$	20,597,383			$	18,474,609
Average total shareholders’ equity		2,310,511				2,156,128				2,020,903				2,194,384				1,972,425
Average loans to average deposits ratio (excluding covered loans)		91.9		%		92.8		%		90.1		%		92.0		%		90.0		%
Average loans to average deposits ratio (including covered loans)		92.9		%		94.0		%		91.8		%		93.2		%		91.9		%
Common Share Data at end of period:
Market price per common share		$	53.43			$	53.38			$	44.67
Book value per common share (2)		$	43.12			$	42.24			$	40.74
Tangible common book value per share (2)		$	32.83			$	33.02			$	31.60
Common shares outstanding		48,336,870				47,677,257				46,691,047
Other Data at end of period:(8)
Leverage Ratio (5)		9.4		%		9.8		%		10.0		%
Tier 1 capital to risk-weighted assets (5)		10.4		%		10.7		%		11.7		%
Common equity Tier 1 capital to risk-weighted assets (5)		8.8		%		9.0		%		N/A
Total capital to risk-weighted assets (5)		12.7		%		13.1		%		13.1		%
Tangible common equity ratio (TCE) (2)(7)		7.4		%		7.7		%		7.9		%
Tangible common equity ratio, assuming full conversion of convertible preferred stock (2) (7)		8.0		%		8.4		%		8.6		%
Allowance for credit losses (6)		$	103,922			$	101,088			$	91,841
Non-performing loans		$	85,976			$	76,554			$	81,070
Allowance for credit losses to total loans (6)		0.64		%		0.65		%		0.65		%
Non-performing loans to total loans		0.53		%		0.49		%		0.58		%
Number of:
Bank subsidiaries		15				15				15
Banking offices		160				147				139

(1) Net revenue includes net interest income and non-interest income

(2) See “Supplemental Financial Measures/Ratios” 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 total average assets. A lower ratio indicates a higher degree of efficiency.

(4) The efficiency ratio is calculated by dividing total non-interest expense by tax-equivalent net revenue (less securities gains or losses). A lower ratio indicates more efficient revenue generation.

(5) Capital ratios for current quarter-end are estimated.  As of January 1, 2015 capital ratios are calculated under the requirements of Basel III.

(6) The allowance for credit losses includes both the allowance for loan losses and the allowance for unfunded lending-related commitments, but excludes the allowance for covered loan losses.

(7) Total shareholders’ equity minus preferred stock and total intangible assets divided by total assets minus total intangible assets.

(8) Asset quality ratios exclude covered loans.

WINTRUST FINANCIAL CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CONDITION
(In thousands)		(Unaudited) September 30, 2015				December 31, 2014				(Unaudited) September 30, 2014
Assets
Cash and due from banks		$	247,341			$	225,136			$	260,694
Federal funds sold and securities purchased under resale agreements		3,314				5,571				26,722
Interest bearing deposits with banks		701,106				998,437				620,370
Available-for-sale securities, at fair value		2,214,281				1,792,078				1,782,648
Trading account securities		3,312				1,206				6,015
Federal Home Loan Bank and Federal Reserve Bank stock		90,308				91,582				80,951
Brokerage customer receivables		28,293				24,221				26,624
Mortgage loans held-for-sale		347,005				351,290				363,303
Loans, net of unearned income, excluding covered loans		16,316,211				14,409,398				14,052,059
Covered loans		168,609				226,709				254,605
Total loans		16,484,820				14,636,107				14,306,664
Less: Allowance for loan losses		102,996				91,705				91,019
Less: Allowance for covered loan losses		2,918				2,131				2,655
Net loans		16,378,906				14,542,271				14,212,990
Premises and equipment, net		587,348				555,228				555,241
FDIC indemnification asset		—				11,846				27,359
Accrued interest receivable and other assets		667,036				501,882				494,213
Trade date securities receivable		277,981				485,534				285,627
Goodwill		472,166				405,634				406,604
Other intangible assets		25,533				18,811				19,984
Total assets		$	22,043,930			$	20,010,727			$	19,169,345
Liabilities and Shareholders’ Equity
Deposits:
Non-interest bearing		$	4,705,994			$	3,518,685			$	3,253,477
Interest bearing		13,522,475				12,763,159				12,811,769
Total deposits		18,228,469				16,281,844				16,065,246
Federal Home Loan Bank advances		451,330				733,050				347,500
Other borrowings		259,978				196,465				51,483
Subordinated notes		140,000				140,000				140,000
Junior subordinated debentures		268,566				249,493				249,493
Trade date securities payable		617				3,828				—
Accrued interest payable and other liabilities		359,234				336,225				287,115
Total liabilities		19,708,194				17,940,905				17,140,837
Shareholders’ Equity:
Preferred stock		251,312				126,467				126,467
Common stock		48,422				46,881				46,766
Surplus		1,187,407				1,133,955				1,129,975
Treasury stock		(3,964		)		(3,549		)		(3,519		)
Retained earnings		901,652				803,400				771,519
Accumulated other comprehensive loss		(49,093		)		(37,332		)		(42,700		)
Total shareholders’ equity		2,335,736				2,069,822				2,028,508
Total liabilities and shareholders’ equity		$	22,043,930			$	20,010,727			$	19,169,345

WINTRUST FINANCIAL CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED)
	Three Months Ended												Nine Months Ended
(In thousands, except per share data)	September 30, 2015				June 30, 2015				September 30, 2014				September 30, 2015				September 30, 2014
Interest income
Interest and fees on loans	$	167,831			$	159,823			$	156,534			$	482,330			$	455,548
Interest bearing deposits with banks	372				305				409				993				977
Federal funds sold and securities purchased under resale agreements	1				1				12				4				22
Available-for-sale securities	16,130				14,071				12,767				44,601				39,190
Trading account securities	19				51				20				83				34
Federal Home Loan Bank and Federal Reserve Bank stock	821				785				733				2,375				2,171
Brokerage customer receivables	205				205				201				591				610
Total interest income	185,379				175,241				170,676				530,977				498,552
Interest expense
Interest on deposits	12,436				11,996				12,298				36,246				35,980
Interest on Federal Home Loan Bank advances	2,458				1,812				2,641				6,426				7,989
Interest on other borrowings	1,045				787				200				2,620				1,460
Interest on subordinated notes	1,776				1,777				1,776				5,328				2,130
Interest on junior subordinated debentures	2,124				1,977				2,091				6,034				6,137
Total interest expense	19,839				18,349				19,006				56,654				53,696
Net interest income	165,540				156,892				151,670				474,323				444,856
Provision for credit losses	8,322				9,482				5,864				23,883				14,404
Net interest income after provision for credit losses	157,218				147,410				145,806				450,440				430,452
Non-interest income
Wealth management	18,243				18,476				17,659				54,819				52,694
Mortgage banking	27,887				36,007				26,691				91,694				66,923
Service charges on deposit accounts	7,403				6,474				6,084				20,174				17,118
(Losses) gains on available-for-sale securities, net	(98		)		(24		)		(153		)		402				(522		)
Fees from covered call options	2,810				4,565				2,107				11,735				4,893
Trading (losses) gains, net	(135		)		160				293				(452		)		(1,102		)
Other	8,843				11,355				5,271				28,135				17,579
Total non-interest income	64,953				77,013				57,952				206,507				157,583
Non-interest expense
Salaries and employee benefits	97,749				94,421				85,976				282,300				247,873
Equipment	8,887				7,914				7,570				24,637				22,196
Occupancy, net	12,066				11,401				10,446				35,818				31,289
Data processing	8,127				6,081				4,765				19,656				14,023
Advertising and marketing	6,237				6,406				3,528				16,550				9,902
Professional fees	4,100				5,074				4,035				13,838				11,535
Amortization of other intangible assets	1,350				934				1,202				3,297				3,521
FDIC insurance	3,035				3,047				3,211				9,069				9,358
OREO expense, net	(367		)		841				581				1,885				7,047
Other	18,790				18,178				17,186				54,539				46,662
Total non-interest expense	159,974				154,297				138,500				461,589				403,406
Income before taxes	62,197				70,126				65,258				195,358				184,629
Income tax expense	23,842				26,295				25,034				74,120				71,364
Net income	$	38,355			$	43,831			$	40,224			$	121,238			$	113,265
Preferred stock dividends and discount accretion	4,079				1,580				1,581				7,240				4,743
Net income applicable to common shares	$	34,276			$	42,251			$	38,643			$	113,998			$	108,522
Net income per common share - Basic	$	0.71			$	0.89			$	0.83			$	2.39			$	2.34
Net income per common share - Diluted	$	0.69			$	0.85			$	0.79			$	2.29			$	2.23
Cash dividends declared per common share	$	0.11			$	0.11			$	0.10			$	0.33			$	0.30
Weighted average common shares outstanding	48,158				47,567				46,639				47,658				46,453
Dilutive potential common shares	4,049				4,156				4,241				4,141				4,349
Average common shares and dilutive common shares	52,207				51,723				50,880				51,799				50,802

SUPPLEMENTAL 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), net interest margin (including its individual components), the efficiency ratio, tangible common equity ratio, tangible common book value per share and return on average tangible common equity. In addition, certain operating measures and ratios are adjusted for acquisition related charges. These operating measures and ratios include operating net income, the efficiency ratio, the net overhead ratio, return on average assets, return on average common equity, return on average tangible common equity and net income per diluted common share. Management believes that these measures and ratios provide users of the Company’s financial information a more meaningful view of the performance of the 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 (“FTE”) basis. In this non-GAAP presentation, net interest income is adjusted to reflect tax-exempt interest income on an equivalent before-tax basis. This measure ensures comparability of net interest income arising from both taxable and tax-exempt sources. Net interest income on a FTE 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 operating net income, which is reported net income excluding acquisition related charges, as a useful measure of operating performance.  Acquisition related charges are specific costs incurred by the Company as a result of an acquisition that are not expected to continue in subsequent periods. The Company excludes acquisition related charges from reported net income as well as certain operating measures and ratios noted above to provide better comparability between periods. 

The following table presents a reconciliation of certain non-GAAP performance measures and ratios used by the Company to evaluate and measure the Company’s performance to the most directly comparable GAAP financial measures for the last five quarters.

	Three Months Ended																				Nine Months Ended
	September 30,				June 30,				March 31,				December 31,				September 30,				September 30,				September 30,
(Dollars and shares in thousands)	2015				2015				2015				2014				2014				2015				2014
Calculation of Net Interest Margin and Efficiency Ratio
(A) Interest Income (GAAP)	$	185,379			$	175,241			$	170,357			$	172,715			$	170,676			$	530,977			$	498,552
Taxable-equivalent adjustment:
- Loans	346				328				327				301				315				1,001				827
- Liquidity Management Assets	841				787				727				555				502				2,355				1,445
- Other Earning Assets	10				27				7				24				11				44				17
Interest Income - FTE	$	186,576			$	176,383			$	171,418			$	173,595			$	171,504			$	534,377			$	500,841
(B) Interest Expense (GAAP)	19,839				18,349				18,466				18,996				19,006				56,654				53,696
Net interest income - FTE	$	166,737			$	158,034			$	152,952			$	154,599			$	152,498			$	477,723			$	447,145
(C) Net Interest Income (GAAP) (A minus B)	$	165,540			$	156,892			$	151,891			$	153,719			$	151,670			$	474,323			$	444,856
(D) Net interest margin (GAAP)	3.31		%		3.39		%		3.40		%		3.44		%		3.45		%		3.36		%		3.54		%
Net interest margin - FTE	3.33		%		3.41		%		3.42		%		3.46		%		3.46		%		3.39		%		3.56		%
(E) Efficiency ratio (GAAP)	69.38		%		65.96		%		68.23		%		67.87		%		66.02		%		67.84		%		66.90		%
Efficiency ratio - FTE	69.02		%		65.64		%		67.90		%		67.59		%		65.76		%		67.50		%		66.65		%
Efficiency ratio - Adjusted for acquisition related charges	66.67		%		65.16		%		67.56		%		67.59		%		65.76		%		66.43		%		66.65		%
(F) Net Overhead Ratio (GAAP)	1.74		%		1.53		%		1.69		%		1.76		%		1.67		%		1.66		%		1.78		%
Net Overhead Ratio - Adjusted for acquisition related charges	1.63		%		1.51		%		1.68		%		1.76		%		1.67		%		1.61		%		1.78		%
Calculation of Tangible Common Equity ratio (at period end)
Total shareholders’ equity	$	2,335,736			$	2,264,982			$	2,131,074			$	2,069,822			$	2,028,508
(G) Less: Convertible preferred stock	(126,312		)		(126,312		)		(126,427		)		(126,467		)		(126,467		)
Less:  Non-convertible preferred stock	(125,000		)		(125,000		)		—				—				—
Less: Intangible assets	(497,699		)		(439,570		)		(439,055		)		(424,445		)		(426,588		)
(H) Total tangible common shareholders’ equity	$	1,586,725			$	1,574,100			$	1,565,592			$	1,518,910			$	1,475,453
Total assets	$	22,043,930			$	20,799,924			$	20,382,271			$	20,010,727			$	19,169,345
Less: Intangible assets	(497,699		)		(439,570		)		(439,055		)		(424,445		)		(426,588		)
(I) Total tangible assets	$	21,546,231			$	20,360,354			$	19,943,216			$	19,586,282			$	18,742,757
Tangible common equity ratio (H/I)	7.4		%		7.7		%		7.9		%		7.8		%		7.9		%
Tangible common equity ratio, assuming full conversion of convertible preferred stock ((H-G)/I)	8.0		%		8.4		%		8.5		%		8.4		%		8.6		%
Calculation of book value per share
Total shareholders’ equity	$	2,335,736			$	2,264,982			$	2,131,074			$	2,069,822			$	2,028,508
Less: Preferred stock	(251,312		)		(251,312		)		(126,427		)		(126,467		)		(126,467		)
(J) Total common equity	$	2,084,424			$	2,013,670			$	2,004,647			$	1,943,355			$	1,902,041
(K) Actual common shares outstanding	48,337				47,677				47,390				46,805				46,691
Book value per common share (J/K)	$	43.12			$	42.24			$	42.30			$	41.52			$	40.74
Tangible common book value per share (H/K)	$	32.83			$	33.02			$	33.04			$	32.45			$	31.60

 

	Three Months Ended																				Nine Months Ended
	September 30,				June 30,				March 31,				December 31,				September 30,				September 30,				September 30,
(Dollars and shares in thousands)	2015				2015				2015				2014				2014				2015				2014
Calculation of return on average assets
(L) Net income	$	38,355			$	43,831			$	39,052			$	38,133			$	40,224			$	121,238			$	113,265
Add: Acquisition related charges, net of tax	3,445				682				448				—				—				4,575				—
(M) Operating net income	41,800				44,513				39,500				38,133				40,224				125,813				113,265
(N) Total average assets	21,688,450				20,256,996				19,826,240				19,366,670				19,127,346				20,597,383				18,474,609
Return on average assets, annualized (L/N)	0.70		%		0.87		%		0.80		%		0.78		%		0.83		%		0.79		%		0.82		%
Return on average assets, adjusted for acquisition related charges, annualized (M/N)	0.76		%		0.88		%		0.81		%		0.78		%		0.83		%		0.82		%		0.82		%
Calculation of return on average common equity
(O) Net income applicable to common shares	34,276				42,251				37,471				36,553				38,643				113,998				108,522
(P) Add: Acquisition related charges, net of tax	3,445				682				448				—				—				4,575				—
(Q) Add: After-tax intangible asset amortization	833				597				615				722				739				2,046				2,159
(R) Tangible operating net income applicable to common shares	38,554				43,530				38,534				37,275				39,382				120,619				110,681
Total average shareholders' equity	2,310,511				2,156,128				2,114,356				2,057,855				2,020,903				2,194,384				1,972,425
Less: Average preferred stock	(251,312		)		(134,586		)		(126,445		)		(126,467		)		(126,467		)		(171,238		)		(126,472		)
(S) Total average common shareholders' equity	2,059,199				2,021,542				1,987,911				1,931,388				1,894,436				2,023,146				1,845,953
Less: Average intangible assets	(490,583		)		(439,455		)		(436,456		)		(425,834		)		(419,125		)		(455,787		)		(402,848		)
(T) Total average tangible common shareholders’ equity	1,568,616				1,582,087				1,551,455				1,505,554				1,475,311				1,567,359				1,443,105
Return on average common equity, annualized  (O/S)	6.60		%		8.38		%		7.64		%		7.51		%		8.09		%		7.53		%		7.86		%
Return on average common equity, adjusted for acquisition related charges, annualized  ((O+P)/S)	7.26		%		8.52		%		7.73		%		7.51		%		8.09		%		7.82		%		7.86		%
Return on average tangible common equity, annualized ((O+Q)/T)	8.88		%		10.86		%		9.96		%		9.82		%		10.59		%		9.90		%		10.25		%
Return on average tangible common equity, adjusted for acquisition related charges, annualized  (R/T)	9.73		%		11.03		%		10.07		%		9.82		%		10.59		%		10.26		%		10.25		%
Calculation of net income per common share - diluted
(U) Net income applicable to common shares - Diluted	35,855				43,831				39,052				38,133				40,224				118,738				113,265
Add: Acquisition related charges, net of tax	3,445				682				448				—				—				4,575				—
(V) Net income applicable to common shares - Diluted, adjusted for acquisition related charges	39,300				44,513				39,500				38,133				40,224				123,313				113,265
Weighted average common shares and effect of dilutive potential common shares (W)	52,207				51,723				51,472				50,977				50,880				51,799				50,802
Net income per common share - Diluted (U/W)	0.69				0.85				0.76				0.75				0.79				2.29				2.23
Net income per common share - Diluted, adjusted for acquisition related charges (V/W)	0.75				0.86				0.77				0.75				0.79				2.38				2.23

 

LOANS
Loan Portfolio Mix and Growth Rates
														% Growth
(Dollars in thousands)		September 30, 2015				December 31, 2014				September 30, 2014				From (1) December 31, 2014			From September 30, 2014
Balance:
Commercial		$	4,400,185			$	3,924,394			$	3,689,671			16	%		19	%
Commercial real-estate		5,307,566				4,505,753				4,510,375				24			18
Home equity		797,465				716,293				720,058				15			11
Residential real-estate		571,743				483,542				470,319				24			22
Premium finance receivables - commercial		2,407,075				2,350,833				2,377,892				3			1
Premium finance receivables - life insurance		2,700,275				2,277,571				2,134,405				25			27
Consumer and other(2)		131,902				151,012				149,339				(17	)		(12	)
Total loans, net of unearned income, excluding covered loans		$	16,316,211			$	14,409,398			$	14,052,059			18	%		16	%
Covered loans		168,609				226,709				254,605				(34	)		(34	)
Total loans, net of unearned income		$	16,484,820			$	14,636,107			$	14,306,664			17	%		15	%
Mix:
Commercial		27		%		26		%		26		%
Commercial real-estate		32				31				31
Home equity		5				5				5
Residential real-estate		3				3				3
Premium finance receivables - commercial		15				16				17
Premium finance receivables - life insurance		16				16				15
Consumer and other(2)		1				1				1
Total loans, net of unearned income, excluding covered loans		99		%		98		%		98		%
Covered loans		1				2				2
Total loans, net of unearned income		100		%		100		%		100		%

(1) Annualized
(2) Includes autos, boats, snowmobiles and other indirect consumer loans as well as short-term accounts receivable financing.

As of September 30, 2015								% of Total Balance				Nonaccrual						> 90 Days Past Due and Still Accruing						Allowance For Loan Losses Allocation
(Dollars in thousands)		Balance
Commercial:
Commercial and industrial		$			2,646,275			27.3		%		$			12,006			$			—			$			21,880
Franchise		222,001						2.3				—						—						3,145
Mortgage warehouse lines of credit		136,614						1.4				—						—						1,022
Community Advantage - homeowner associations		123,209						1.3				—						—						3
Aircraft		6,371						0.1				—						—						8
Asset-based lending		802,370						8.3				12						—						6,282
Tax exempt		232,667						2.4				—						—						1,303
Leases		205,786						2.1				—						—						169
Other		1,953						—				—						—						12
PCI - commercial loans (1)		22,939						0.2				—						217						166
Total commercial		$			4,400,185			45.4		%		$			12,018			$			217			$			33,990
Commercial Real-Estate:
Residential construction		$			61,271			0.6		%		$			—			$			—			$			753
Commercial construction		285,963						2.9				31						—						2,995
Land		79,076						0.8				1,756						—						2,550
Office		790,311						8.1				4,045						—						7,156
Industrial		636,124						6.6				11,637						—						5,521
Retail		785,842						8.1				2,022						—						5,254
Multi-family		687,659						7.1				1,525						—						6,959
Mixed use and other		1,820,328						18.7				7,601						—						12,079
PCI - commercial real-estate (1)		160,992						1.7				—						13,547						794
Total commercial real-estate		$			5,307,566			54.6		%		$			28,617			$			13,547			$			44,061
Total commercial and commercial real-estate		$			9,707,751			100.0		%		$			40,635			$			13,764			$			78,051
Commercial real-estate - collateral location by state:
Illinois		$			4,053,531			76.4		%
Wisconsin		577,231						10.9
Total primary markets		$			4,630,762			87.3		%
Florida		56,020						1.1
Arizona		9,677						0.2
Indiana		106,591						2.0
Other (no individual state greater than 0.6%)		504,516						9.4
Total		$			5,307,566			100.0		%

(1) Purchased credit impaired ("PCI") loans represent loans acquired with evidence of credit quality deterioration since origination, in accordance with ASC 310-30. Loan agings are based upon contractually required payments. 

DEPOSITS
Deposit Portfolio Mix and Growth Rates
																				% Growth
(Dollars in thousands)		September 30, 2015						December 31, 2014						September 30, 2014						From (1) December 31, 2014							From September 30, 2014
Balance:
Non-interest bearing		$			4,705,994			$			3,518,685			$			3,253,477			45					%		45		%
NOW and interest bearing demand deposits		2,231,258						2,236,089						2,086,099						—							7
Wealth management deposits (2)		1,469,920						1,226,916						1,212,317						26							21
Money market		4,001,518						3,651,467						3,744,682						13							7
Savings		1,684,007						1,508,877						1,465,250						16							15
Time certificates of deposit		4,135,772						4,139,810						4,303,421						—							(4		)
Total deposits		$			18,228,469			$			16,281,844			$			16,065,246			16					%		13		%
Mix:
Non-interest bearing		26				%		22				%		20				%
NOW and interest bearing demand deposits		12						14						13
Wealth management deposits (2)		8						8						8
Money market		22						22						23
Savings		9						9						9
Time certificates of deposit		23						25						27
Total deposits		100				%		100				%		100				%

(1) Annualized
(2) Represents deposit balances of the Company’s subsidiary banks from brokerage customers of Wayne Hummer Investments, trust and asset management customers of The Chicago Trust Company and brokerage customers from unaffiliated companies which have been placed into deposit accounts of the Banks.

Time Certificates of Deposit
Maturity/Re-pricing Analysis
As of September 30, 2015
(Dollars in thousands)		CDARs & Brokered Certificates   of Deposit (1)						MaxSafe Certificates   of Deposit (1)						Variable Rate Certificates   of Deposit (2)						Other Fixed Rate   Certificates   of Deposit (1)						Total Time Certificates of Deposit						Weighted-Average Rate of Maturing Time Certificates   of Deposit (3)
1-3 months		$			2,177			$			79,330			$			144,798			$			631,780			$			858,085			0.53		%
4-6 months		—						40,240						—						671,299						711,539						0.69		%
7-9 months		36,504						27,980						—						511,261						575,745						0.63		%
10-12 months		165,615						28,909						—						524,389						718,913						0.79		%
13-18 months		—						23,819						—						613,561						637,380						0.96		%
19-24 months		44,063						5,877						—						263,783						313,723						1.02		%
24+ months		3,432						14,395						—						302,560						320,387						1.23		%
Total		$			251,791			$			220,550			$			144,798			$			3,518,633			$			4,135,772			0.77		%

(1) This category of certificates of deposit is shown by contractual maturity date.
(2) This category includes variable rate certificates of deposit and savings certificates with the majority repricing on at least a monthly basis.
(3) Weighted-average rate excludes the impact of purchase accounting fair value adjustments. 

NET INTEREST INCOME

The following table presents a summary of Wintrust’s average balances, net interest income and related net interest margins, calculated on a fully tax-equivalent basis, for the third quarter of 2015 compared to the second quarter of 2015 (sequential quarters) and third quarter of 2014 (linked quarters), respectively: 

	Average Balance  for three months ended,																		Interest  for three months ended,																		Yield/Rate for three months ended,
(Dollars in thousands)	September 30,  2015						June 30, 2015						September 30,  2014						September 30, 2015						June 30, 2015						September 30, 2014						September 30, 2015				June 30, 2015				September 30, 2014
Liquidity management  assets(1)(2)(7)	$			3,140,782			$			2,709,176			$			2,814,720			$			18,165			$			15,949			$			14,423			2.29		%		2.36		%		2.03		%
Other earning assets(2)(3)(7)	30,990						32,115						28,702						234						283						232						3.00				3.54				3.21
Loans, net of unearned income(2)(4)(7)	16,509,001						15,632,875						14,359,467						165,572						156,970						151,540						3.98				4.03				4.19
Covered loans	174,768						202,663						262,310						2,605						3,181						5,309						5.91				6.30				8.03
Total earning assets(7)	$			19,855,541			$			18,576,829			$			17,465,199			$			186,576			$			176,383			$			171,504			3.73		%		3.81		%		3.90		%
Allowance for loan and covered loan losses	(106,091				)		(101,211				)		(96,463				)
Cash and due from banks	251,289						236,242						237,402
Other assets	1,687,711						1,545,136						1,521,208
Total assets	$			21,688,450			$			20,256,996			$			19,127,346
Interest-bearing deposits	$			13,489,651			$			13,115,453			$			12,695,780			$			12,436			$			11,996			$			12,298			0.37		%		0.37		%		0.38		%
Federal Home Loan Bank advances	402,646						347,656						380,083						2,458						1,812						2,641						2.42				2.09				2.76
Other borrowings	272,782						193,660						54,653						1,045						787						200						1.52				1.63				1.45
Subordinated notes	140,000						140,000						140,000						1,776						1,777						1,776						5.08				5.07				5.07
Junior subordinated debentures	264,974						249,493						249,493						2,124						1,977						2,091						3.14				3.13				3.28
Total interest-bearing liabilities	$			14,570,053			$			14,046,262			$			13,520,009			$			19,839			$			18,349			$			19,006			0.54		%		0.52		%		0.56		%
Non-interest bearing deposits	4,473,632						3,725,728						3,233,937
Other liabilities	334,254						328,878						352,497
Equity	2,310,511						2,156,128						2,020,903
Total liabilities and shareholders’ equity	$			21,688,450			$			20,256,996			$			19,127,346
Interest rate spread(5)(7)																																					3.19		%		3.29		%		3.34		%
Net free funds/contribution(6)	$			5,285,488			$			4,530,567			$			3,945,190																					0.14		%		0.12		%		0.12		%
Net interest income/ margin(7)																			$			166,737			$			158,034			$			152,498			3.33		%		3.41		%		3.46		%

(1) Liquidity management assets include available-for-sale securities, interest earning deposits with banks, federal funds sold and securities purchased under resale agreements.
(2) Interest income on tax-advantaged loans, trading securities and available-for-sale securities reflects a tax-equivalent adjustment based on a marginal federal corporate tax rate of 35%. The total adjustments for the three months ended September 30, 2015, June 30, 2015 and September 30, 2014 were $1.2 million, $1.1 million and $828,000, respectively.
(3) Other earning assets include brokerage customer receivables and trading account securities.
(4) Loans, net of unearned income, include loans held-for-sale and non-accrual loans.
(5) Interest rate spread is the difference between the yield earned on earning assets and the rate paid on interest-bearing liabilities.
(6) Net free funds are the difference between total average earning assets and total average interest-bearing liabilities. The estimated contribution to net interest margin from net free funds is calculated using the rate paid for total interest-bearing liabilities.
(7) See “Supplemental Financial Measures/Ratios” for additional information on this performance ratio.

The following table presents a summary of Wintrust's average balances, net interest income and related net interest margins, calculated on a fully tax-equivalent basis, for the nine months ended September 30, 2015 compared to the nine months ended September 30, 2014:

	Average Balance for nine months ended,																Interest  for nine months ended,																Yield/Rate  for nine months ended,
(Dollars in thousands)	September 30,  2015										September 30, 2014						September 30,  2015										September 30, 2014						September 30,  2015							September 30, 2014
Liquidity management assets(1)(2)(7)	$							2,907,284			$			2,690,422			$							50,328			$			43,805			2.31					%		2.18		%
Other earning assets(2)(3)(7)	30,286										28,363						718										661						3.17							3.12
Loans, net of unearned income(2)(4)(7)	15,730,009										13,786,669						473,857										437,030						4.03							4.24
Covered loans	197,069										293,349						9,474										19,345						6.43							8.82
Total earning assets(7)	$							18,864,648			$			16,798,803			$							534,377			$			500,841			3.79					%		3.99		%
Allowance for loan and covered loan losses	(101,440								)		(101,624				)
Cash and due from banks	245,745										231,199
Other assets	1,588,430										1,546,231
Total assets	$							20,597,383			$			18,474,609
Interest-bearing deposits	$							13,158,498			$			12,369,241			$							36,246			$			35,980			0.37					%		0.39		%
Federal Home Loan Bank advances	369,443										405,246						6,426										7,989						2.33							2.64
Other borrowings	220,763										148,549						2,620										1,460						1.59							1.31
Subordinated notes	140,000										56,410						5,328										2,130						5.07							5.03
Junior subordinated debentures	254,710										249,493						6,034										6,137						3.12							3.24
Total interest-bearing liabilities	$							14,143,414			$			13,228,939			$							56,654			$			53,696			0.53					%		0.54		%
Non-interest bearing deposits	3,931,194										2,948,961
Other liabilities	328,391										324,284
Equity	2,194,384										1,972,425
Total liabilities and shareholders’ equity	$							20,597,383			$			18,474,609
Interest rate spread(5)(7)																																	3.26					%		3.45		%
Net free funds/contribution(6)	$							4,721,234			$			3,569,864																			0.13					%		0.11		%
Net interest income/ margin(7)																	$							477,723			$			447,145			3.39					%		3.56		%

(1) Liquidity management assets include available-for-sale securities, interest earning deposits with banks, federal funds sold and securities purchased under resale agreements.
(2) Interest income on tax-advantaged loans, trading securities and available-for-sale securities reflects a tax-equivalent adjustment based on a marginal federal corporate tax rate of 35%. The total adjustments for the nine months ended September 30, 2015, and September 30, 2014 were $3.4 million and $2.3 million, respectively.
(3) Other earning assets include brokerage customer receivables and trading account securities.
(4) Loans, net of unearned income, include loans held-for-sale and non-accrual loans.
(5) Interest rate spread is the difference between the yield earned on earning assets and the rate paid on interest-bearing liabilities.
(6) Net free funds are the difference between total average earning assets and total average interest-bearing liabilities. The estimated contribution to net interest margin from net free funds is calculated using the rate paid for total interest-bearing liabilities.
(7) See “Supplemental Financial Measures/Ratios” for additional information on this performance ratio

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 at September 30, 2015, June 30, 2015 and September 30, 2014 is as follows:

Static Shock Scenario				+200 Basis  Points				+100  Basis  Points				-100 Basis  Points
September 30, 2015				15.6		%		8.0		%		(11.1		)%
June 30, 2015				14.8		%		7.3		%		(10.5		)%
September 30, 2014				13.7		%		6.2		%		(11.1		)%

 

Ramp Scenario	+200 Basis Points				+100 Basis Points				-100 Basis Points
September 30, 2015	6.7		%		3.6		%		(4.0		)%
June 30, 2015	6.4		%		3.3		%		(4.0		)%
September 30, 2014	5.0		%		2.6		%		(5.0		)%

These results indicate that the Company has positioned its balance sheet to benefit from a rise in interest rates.  This analysis also indicates that the Company would benefit to a greater magnitude should a rise in interest rates be significant (i.e., 200 basis points) and immediate (Static Shock Scenario). 

NON-INTEREST INCOME

The following table presents non-interest income by category for the periods presented:

		Three Months Ended
		September 30,														June 30,						September 30,						Q3 2015 compared to Q2 2015													Q3 2015 compared to Q3 2014
(Dollars in thousands)		2015																	2015			2014						$ Change									% Change				$ Change									% Change
Brokerage		$											6,579			$			6,750			$			7,185			$						(171	)		(3		)%		$						(606	)		(8		)%
Trust and asset management		11,664														11,726						10,474						(62							)		(1		)		1,190									11
Total wealth management		18,243														18,476						17,659						(233							)		(1		)		584									3
Mortgage banking		27,887														36,007						26,691						(8,120							)		(23		)		1,196									4
Service charges on deposit accounts		7,403														6,474						6,084						929									14				1,319									22
(Losses) gains on available-for-sale securities, net		(98												)		(24				)		(153				)		(74							)		NM				55									(36		)
Fees from covered call options		2,810														4,565						2,107						(1,755							)		(38		)		703									33
Trading (losses) gains, net		(135												)		160						293						(295							)		NM				(428							)		NM
Other:
Interest rate swap fees		2,606														2,347						1,207						259									11				1,399									NM
BOLI		212														2,180						652						(1,968							)		(90		)		(440							)		(67		)
Administrative services		1,072														1,053						990						19									2				82									8
Miscellaneous		4,953														5,775						2,422						(822							)		(14		)		2,531									NM
Total Other		8,843														11,355						5,271						(2,512							)		(22		)		3,572									68
Total Non-Interest Income		$											64,953			$			77,013			$			57,952			$						(12,060	)		(16		)%		$						7,001			12		%

NM - Not Meaningful

		Nine Months Ended
		September 30,										September 30,						Q3 2015 compared to Q3 2014
(Dollars in thousands)		2015										2014						$ Change									% Change
Brokerage		$							20,181			$			22,546			$						(2,365	)		(10		)%
Trust and asset management		34,638										30,148						4,490									15
Total wealth management		54,819										52,694						2,125									4
Mortgage banking		91,694										66,923						24,771									37
Service charges on deposit accounts		20,174										17,118						3,056									18
Gains (losses) on available-for-sale securities, net		402										(522				)		924									NM
Fees from covered call options		11,735										4,893						6,842									NM
Trading losses, net		(452								)		(1,102				)		650									(59		)
Other:
Interest rate swap fees		7,144										3,350						3,794									NM
BOLI		3,158										2,039						1,119									55
Administrative services		3,151										2,786						365									13
Miscellaneous		14,682										9,404						5,278									56
Total Other		28,135										17,579						10,556									60
Total Non-Interest Income		$							206,507			$			157,583			$						48,924			31		%

The significant changes in non-interest income for the quarter ended September 30, 2015 compared to the quarters ended June 30, 2015 and September 30, 2014 are discussed below.

Wealth management revenue totaled $18.2 million in the third quarter of 2015 compared to $18.5 million in the second quarter of 2015, a decrease of 1%, and $17.7 million in the third quarter of 2014, an increase of 3%.  The decrease during the current period as compared to the second quarter of 2015 is primarily attributable to volatile market conditions and lower customer trading activity in the current quarter.  The increase during the current period as compared to the third quarter of 2014 is primarily attributable to growth in assets under management due to new customers.  Wealth management revenue is comprised of the trust and asset management revenue of The Chicago Trust Company and Great Lakes Advisors and the brokerage commissions, managed money fees and insurance product commissions at Wayne Hummer Investments.

For the quarter ended September 30, 2015, mortgage banking revenue totaled $27.9 million, a decrease of $8.1 million, or 23%, when compared to the second quarter of 2015, and an increase of $1.2 million, or 4%, when compared to the third quarter of 2014.  The decrease in mortgage banking revenue in the third quarter of 2015 as compared to the second quarter of 2015  resulted primarily from lower origination volumes in the current quarter. Mortgage loans originated or purchased for sale were $973.7 million in the current quarter as compared to $1.2 billion in the second quarter of 2015 and $904.8 million in the third quarter of 2014. Mortgage banking revenue includes revenue from activities related to originating, selling and servicing residential real estate loans for the secondary market. 

Service charges on deposit accounts totaled $7.4 million in the third quarter of 2015, an increase of $929,000 and $1.3 million compared to the quarters ended June 30, 2015 and September 30, 2014, respectively.  The increase in the current quarter is mostly a result of higher account analysis fees on deposit accounts which have increased as a result of the Company's commercial banking initiative and recent acquisitions.

Fees from covered call option transactions totaled $2.8 million for the third quarter of 2015, compared to $4.6 million for the second quarter of 2015 and $2.1 million for the third quarter of 2014. 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 effectively 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. Fees from covered call options decreased in the current quarter compared to the second quarter of 2015 primarily as a result of selling call options against a smaller value of underlying securities resulting in lower premiums received by the Company. There were no outstanding call option contracts at September 30, 2015, June 30, 2015 and September 30, 2014.

The Company recognized $135,000 of trading losses in the third quarter of 2015 compared to trading gains of $160,000 in the second quarter of 2015 and trading gains of $293,000 in the third quarter of 2014. Trading gains and losses recorded by the Company primarily result from fair value adjustments related to interest rate derivatives not designated as accounting hedges, primarily interest rate cap instruments that the Company uses to manage interest rate risk, specifically in the event of future increases in short-term interest rates.  The change in value of the cap derivatives reflects the present value of expected cash flows over the remaining life of the caps.  These expected cash flows are derived from the expected path for and a measure of volatility for short-term interest rates.

Other non-interest income totaled $8.8 million in the third quarter of 2015 compared to $11.4 million in the second quarter of 2015 and $5.3 million in the third quarter of 2014.  Other non-interest income decreased in the third quarter of 2015 as compared to the second quarter of 2015, primarily due to lower net gains on partnership investments in the current quarter and from the Company recognizing a $1.5 million BOLI death benefit in the second quarter of 2015.  Other non-interest income increased in the third quarter of 2015 as compared to the third quarter of 2014, primarily due to an increase in swap fee revenues resulting from interest rate hedging transactions related to both customer-based trades and the related matched trades with inter-bank dealer counterparties as well as higher net gains on partnership investments.  

NON-INTEREST EXPENSE

The following table presents non-interest expense by category for the periods present:

		Three Months Ended
		September 30,														June 30,						September 30,						Q3 2015 compared to Q2 2015													Q3 2015 compared to Q3 2014
(Dollars in thousands)		2015														2015						2014						$ Change									% Change				$ Change									% Change
Salaries and employee benefits:
Salaries		$											53,028			$			46,617			$			45,471			$						6,411			14		%		$						7,557			17		%
Commissions and incentive compensation		30,035														33,387						27,885						(3,352							)		(10		)		2,150									8
Benefits		14,686														14,417						12,620						269									2				2,066									16
Total salaries and employee benefits		97,749														94,421						85,976						3,328									4				11,773									14
Equipment		8,887														7,914						7,570						973									12				1,317									17
Occupancy, net		12,066														11,401						10,446						665									6				1,620									16
Data processing		8,127														6,081						4,765						2,046									34				3,362									71
Advertising and marketing		6,237														6,406						3,528						(169							)		(3		)		2,709									77
Professional fees		4,100														5,074						4,035						(974							)		(19		)		65									2
Amortization of other intangible assets		1,350														934						1,202						416									45				148									12
FDIC insurance		3,035														3,047						3,211						(12							)		—				(176							)		(5		)
OREO expense, net		(367												)		841						581						(1,208							)		NM				(948							)		NM
Other:
Commissions - 3rd party brokers		1,364														1,403						1,621						(39							)		(3		)		(257							)		(16		)
Postage		1,927														1,578						1,427						349									22				500									35
Miscellaneous		15,499														15,197						14,138						302									2				1,361									10
Total other		18,790														18,178						17,186						612									3				1,604									9
Total Non-Interest Expense		$											159,974			$			154,297			$			138,500			$						5,677			4		%		$						21,474			16		%

 

		Nine months ended
		September 30,										September 30,						$						%
(Dollars in thousands)		2015										2014						Change						Change
Salaries and employee benefits:
Salaries		$							146,493			$			132,556			$			13,937			11		%
Commissions and incentive compensation		88,916										74,816						14,100						19
Benefits		46,891										40,501						6,390						16
Total salaries and employee benefits		282,300										247,873						34,427						14
Equipment		24,637										22,196						2,441						11
Occupancy, net		35,818										31,289						4,529						14
Data processing		19,656										14,023						5,633						40
Advertising and marketing		16,550										9,902						6,648						67
Professional fees		13,838										11,535						2,303						20
Amortization of other intangible assets		3,297										3,521						(224				)		(6		)
FDIC insurance		9,069										9,358						(289				)		(3		)
OREO expense, net		1,885										7,047						(5,162				)		(73		)
Other:
Commissions - 3rd party brokers		4,153										4,911						(758				)		(15		)
Postage		5,138										4,321						817						19
Miscellaneous		45,248										37,430						7,818						21
Total other		54,539										46,662						7,877						17
Total Non-Interest Expense		$							461,589			$			403,406			$			58,183			14		%

The significant changes in non-interest expense for the quarter ended September 30, 2015 compared to the quarters ended June 30, 2015 and September 30, 2014 are discussed below.

Salaries and employee benefits expense increased $3.3 million, or 4%, in the third quarter of 2015 compared to the second quarter of 2015. In addition to acquisition related charges of $1.7 million, the increase was primarily a result of a $5.1 million increase in salaries as a result of various acquisitions and additional staffing as the Company grows, partially offset by a $3.6 million decrease in commissions and incentive compensation primarily attributable to lower commissions as a result of decreased mortgage loan origination volume. Salaries and employee benefits expense increased $11.8 million, or 14%, compared to the third quarter of 2014 primarily as a result of the $1.7 million in acquisition related charges during the period as well as an additional $6.2 million increase in salaries as a result of various acquisitions and additional staffing as the Company grows, a $1.9 million increase in commissions and incentive compensation primarily attributable to higher commissions as a result of increased mortgage loan origination volume, and a $2.0 million increase in employee benefits resulting from higher insurance costs. 

Equipment expense totaled $8.9 million for the third quarter of 2015, an increase of $973,000 compared to the second quarter of 2015 and an increase of $1.3 million compared to the third quarter of 2014. The increase in the current quarter compared to the prior year quarter is primarily related to the impact of the recent acquisitions and increased software license fees and higher depreciation as a result of equipment purchases.  Equipment expense includes depreciation on equipment, maintenance and repairs, equipment rental and software license fees. 

Occupancy expense for the third quarter of 2015 was $12.1 million, an increase of $665,000, or 6%, compared to the second quarter of 2015 and an increase of $1.6 million, or 16%, compared to the same period in 2014.  Occupancy expense increased in the current quarter compared to the prior quarter due to property taxes and additional depreciation expenses on owned locations, including those obtained in the Company's acquisitions. The increase in the current quarter as compared to the prior year quarter is primarily the result of increased rent expense on leased properties as well as additional depreciation expenses on owned locations including those obtained in the Company's acquisitions. Occupancy expense includes depreciation on premises, real estate taxes, utilities and maintenance of premises, as well as net rent expense for leased premises.

Data processing expenses totaled $8.1 million in the third quarter of 2015 compared to $6.1 million recorded in the second quarter of 2015 and $4.8 million recorded in the third quarter of 2014. The amount of data processing expenses incurred increased due to $2.7 million and $653,000 of additional expenses recorded in the third quarter of 2015 and the second quarter of 2015, respectively, related to bank acquisition transactions as well as overall growth of loan and deposit accounts. 

Advertising and marketing expenses totaled $6.2 million in the third quarter of 2015, a decrease of $169,000 compared to the second quarter of 2015 and an increase of $2.7 million compared to the third quarter of 2014.  The increase in the current quarter compared to the prior year quarter relates primarily to expenses for community-related advertisements and sponsorships. 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 type of marketing programs utilized which are determined based on the market area, targeted audience, competition and various other factors.

Professional fees for the third quarter of 2015 were $4.1 million, compared to $5.1 million for the second quarter of 2015 and $4.0 million in the third quarter of 2014. The decrease in professional fees in the current quarter as compared to the second quarter of 2015 is due to a decrease in legal expenses, including legal fees incurred in connection with  acquisitions as well as lower professional tax preparation fees. The majority of legal work for the acquisitions completed early in the third quarter of 2015 was performed in prior quarters of 2015.  These acquisition related professional fees totaled $335,000 in the third quarter of 2015 compared to $417,000 in the second quarter of 2015. Professional fees include legal, audit and tax fees, external loan review costs and normal regulatory exam assessments.

OREO expense totaled $(367,000) in the third quarter of 2015 compared to OREO expense of $841,000 recorded in the second quarter of 2015 and $581,000 recorded in the third quarter of 2014.  OREO expense was lower in the current quarter compared to the quarter ended June 30, 2015 and September 30, 2014 primarily due to higher gains recorded on  non-covered OREO sales in the current quarter and lower expenses to maintain OREO properties.  OREO costs include all costs related to obtaining, maintaining and selling other real estate owned properties.    

Miscellaneous expense in the third quarter of 2015 increased $302,000, or 2%, compared to the quarter ended June 30, 2015 and increased $1.4 million, or 10%, compared to the quarter ended September 30, 2014.  The increase in the current quarter as compared to the prior year quarter is primarily a result of higher travel and entertainment expenses and increased costs related to insurance and donations. 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. 

ASSET QUALITY

Allowance for Credit Losses, excluding covered loans

		Three Months Ended												Nine Months Ended
		September 30,				June 30,				September 30,				September 30,				September 30,
(Dollars in thousands)		2015				2015				2014				2015				2014
Allowance for loan losses at beginning of period		$	100,204			$	94,446			$	92,253			$	91,705			$	96,922
Provision for credit losses		8,665				9,701				6,028				24,551				16,145
Other adjustments		(153		)		(93		)		(335		)		(494		)		(588		)
Reclassification from (to) allowance for unfunded lending-related commitments		(42		)		4				62				(151		)		(102		)
Charge-offs:
Commercial		964				1,243				832				2,884				3,864
Commercial real estate		1,948				856				4,510				3,809				11,354
Home equity		1,116				1,847				748				3,547				3,745
Residential real estate		1,138				923				205				2,692				1,120
Premium finance receivables - commercial		1,595				1,526				1,557				4,384				4,259
Premium finance receivables - life insurance		—				—				—				—				—
Consumer and other		116				115				250				342				636
Total charge-offs		6,877				6,510				8,102				17,658				24,978
Recoveries:
Commercial		462				285				296				1,117				883
Commercial real estate		213				1,824				275				2,349				762
Home equity		42				39				99				129				478
Residential real estate		136				16				111				228				316
Premium finance receivables - commercial		278				458				289				1,065				920
Premium finance receivables - life insurance		16				—				1				16				5
Consumer and other		52				34				42				139				256
Total recoveries		1,199				2,656				1,113				5,043				3,620
Net charge-offs		(5,678		)		(3,854		)		(6,989		)		(12,615		)		(21,358		)
Allowance for loan losses at period end		$	102,996			$	100,204			$	91,019			$	102,996			$	91,019
Allowance for unfunded lending-related commitments at period end		926				884				822				926				822
Allowance for credit losses at period end		$	103,922			$	101,088			$	91,841			$	103,922			$	91,841
Annualized net charge-offs by category as a percentage of its own respective category’s average:
Commercial		0.05		%		0.09		%		0.06		%		0.06		%		0.11		%
Commercial real estate		0.13				(0.08		)		0.38				0.04				0.33
Home equity		0.55				1.01				0.36				0.62				0.61
Residential real estate		0.42				0.39				0.05				0.37				0.15
Premium finance receivables - commercial		0.21				0.18				0.20				0.18				0.19
Premium finance receivables - life insurance		—				—				—				—				—
Consumer and other		0.17				0.23				0.49				0.17				0.30
Total loans, net of unearned income, excluding covered loans		0.14		%		0.10		%		0.19		%		0.11		%		0.21		%
Net charge-offs as a percentage of the provision for credit losses		65.53		%		39.73		%		115.95		%		51.39		%		132.29		%
Loans at period-end, excluding covered loans		$	16,316,211			$	15,513,650			$	14,052,059
Allowance for loan losses as a percentage of loans at period end		0.63		%		0.65		%		0.65		%
Allowance for credit losses as a percentage of loans at period end		0.64		%		0.65		%		0.65		%

The allowance for credit losses, excluding the allowance for covered loan losses, is comprised of the allowance for loan losses and the allowance for unfunded lending-related commitments. The allowance for loan losses is a reserve against loan amounts that are actually funded and outstanding while the allowance for unfunded lending-related commitments (separate liability account) relates to certain amounts that Wintrust is committed to lend but for which funds have not yet been disbursed. The provision for credit losses, excluding the provision for covered loan losses, may contain both a component related to funded loans (provision for loan losses) and a component related to lending-related commitments (provision for unfunded loan commitments and letters of credit).

The provision for credit losses, excluding the provision for covered loan losses, totaled $8.7 million for the third quarter of 2015 compared to $9.7 million for the second quarter of 2015 and $6.0 million for the third quarter of 2014. The higher provision for credit losses in the third quarter of 2015 compared to the same period of 2014 was primarily due to loan growth since the prior period.

Net charge-offs as a percentage of loans, excluding covered loans, for the third quarter of 2015 totaled 14 basis points on an annualized basis compared to ten basis points on an annualized basis in the second quarter of 2015 and 19 basis points on an annualized basis in the third quarter of 2014.  Net charge-offs totaled $5.7 million in the third quarter of 2015, a $1.8 million increase from $3.9 million in the second quarter of 2015 and a $1.3 million decrease from $7.0 million in the third quarter of 2014.

Management believes the allowance for credit losses is appropriate to provide for inherent losses in the portfolio. There can be no assurances however, that future losses will not exceed the amounts provided for, thereby affecting future results of operations. The amount of future additions to the allowance for credit losses will be dependent upon management’s assessment of the appropriateness of the allowance based on its evaluation of economic conditions, changes in real estate values, interest rates, the regulatory environment, the level of past-due and non-performing loans, and other factors.

The Company also provides a provision for covered loan losses on covered loans and maintains an allowance for covered loan losses on covered loans. Please see “Covered Assets” later in this document for more detail.

The following table presents the provision for credit losses and allowance for credit losses by component for the periods presented:

		Three months ended												Nine months ended
		September 30,				June 30,				September 30,				September 30,				September 30,
(Dollars in thousands)		2015				2015				2014				2015				2014
Provision for loan losses		$	8,623			$	9,705			$	6,090			$	24,400			$	16,043
Provision for unfunded lending-related commitments		42				(4		)		(62		)		151				102
Provision for covered loan losses		(343		)		(219		)		(164		)		(668		)		(1,741		)
Provision for credit losses		$	8,322			$	9,482			$	5,864			$	23,883			$	14,404
										Period End
										September 30,				June 30,				September 30,
										2015				2015				2014
Allowance for loan losses										$	102,996			$	100,204			$	91,019
Allowance for unfunded lending-related commitments										926				884				822
Allowance for covered loan losses										2,918				2,215				2,655
Allowance for credit losses										$	106,840			$	103,303			$	94,496

The tables below summarize the calculation of allowance for loan losses for the Company’s core loan portfolio and consumer, niche and purchased loan portfolio as of September 30, 2015 and June 30, 2015.

		As of September 30, 2015
		Recorded				Calculated				As a percentage of its own respective
(Dollars in thousands)		Investment				Allowance				category’s balance
Commercial:(1)
Commercial and industrial		$	2,579,208			$	21,875			0.85	%
Asset-based lending		797,301				6,282				0.79
Tax exempt		230,878				1,303				0.56
Leases		205,612				169				0.08
Other		1,953				12				0.61
Commercial real-estate:(1)
Residential construction		60,072				753				1.25
Commercial construction		283,689				2,995				1.06
Land		73,923				2,550				3.45
Office		762,734				7,154				0.94
Industrial		614,619				5,515				0.90
Retail		753,009				5,254				0.70
Multi-family		650,287				6,951				1.07
Mixed use and other		1,517,265				12,077				0.80
Home equity(1)		694,203				12,205				1.76
Residential real-estate(1)		518,756				4,580				0.88
Total core loan portfolio		$	9,743,509			$	89,675			0.92	%
Commercial:
Franchise		$	222,001			$	3,145			1.42	%
Mortgage warehouse lines of credit		136,614				1,022				0.75
Community Advantage - homeowner associations		123,209				3				—
Aircraft		6,371				8				0.13
Purchased non-covered commercial loans (2)		97,038				171				0.18
Commercial real-estate:
Purchased non-covered commercial real-estate (2)		591,968				812				0.14
Purchased non-covered home equity (2)		103,262				18				0.02
Purchased non-covered residential real-estate (2)		52,987				6				0.01
Premium finance receivables
U.S. commercial insurance loans		2,127,969				5,458				0.26
Canada commercial insurance loans (2)		279,106				583				0.21
Life insurance loans (1)		2,326,689				1,040				0.04
Purchased life insurance loans (2)		373,586				—				—
Consumer and other (1)		127,011				1,054				0.83
Purchased non-covered consumer and other (2)		4,891				1				0.02
Total consumer, niche and purchased loan portfolio		$	6,572,702			$	13,321			0.20	%
Total loans, net of unearned income, excluding covered loans		$	16,316,211			$	102,996			0.63	%
Non-accretable credit discounts on purchased loans reported in accordance with ASC 310-30, excluding covered loans						$	30,405
Total allowance for loan losses and non-accretable credit discounts on purchased loans, excluding covered loans						$	133,401			0.82	%

(1) Excludes purchased loans reported in accordance with ASC 310-20 and ASC 310-30.
(2) Purchased loans represent loans reported in accordance with ASC 310-20 and ASC 310-30.

		As of June 30, 2015
		Recorded				Calculated				As a percentage of its own respective
(Dollars in thousands)		Investment				Allowance				category’s balance
Commercial:(1)
Commercial and industrial		$	2,486,860			$	21,691			0.87	%
Asset-based lending		830,378				6,382				0.77
Tax exempt		198,520				1,186				0.60
Leases		187,630				166				0.09
Other		2,772				20				0.72
Commercial real-estate:(1)
Residential construction		56,500				687				1.22
Commercial construction		247,982				2,656				1.07
Land		81,630				2,513				3.08
Office		726,155				7,127				0.98
Industrial		608,566				4,524				0.74
Retail		718,990				5,002				0.70
Multi-family		634,144				7,172				1.13
Mixed use and other		1,466,366				12,164				0.83
Home equity(1)		692,692				12,270				1.77
Residential real-estate(1)		469,265				4,966				1.06
Total core loan portfolio		$	9,408,450			$	88,526			0.94	%
Commercial:
Franchise		$	228,599			$	1,852			0.81	%
Mortgage warehouse lines of credit		213,797				1,571				0.73
Community Advantage - homeowner associations		114,883				3				—
Aircraft		6,831				9				0.13
Purchased non-covered commercial loans (2)		60,074				20				0.03
Commercial real-estate:
Purchased non-covered commercial real-estate (2)		310,257				353				0.11
Purchased non-covered home equity (2)		19,658				18				0.09
Purchased non-covered residential real-estate (2)		33,750				53				0.16
Premium finance receivables
U.S. commercial insurance loans		2,163,089				5,502				0.25
Canada commercial insurance loans (2)		297,319				620				0.21
Life insurance loans (1)		2,153,155				799				0.04
Purchased life insurance loans (2)		384,320				—				—
Consumer and other (1)		115,675				877				0.76
Purchased non-covered consumer and other (2)			3,793				1			0.03
Total consumer, niche and purchased loan portfolio		$	6,105,200			$	11,678			0.19	%
Total loans, net of unearned income, excluding covered loans		$	15,513,650			$	100,204			0.65	%
Non-accretable credit discounts on purchased loans reported in accordance with ASC 310-30, excluding covered loans						$	14,474
Total allowance for loan losses and non-accretable credit discounts on purchased loans, excluding covered loans						$	114,678			0.74	%

(1) Excludes purchased loans reported in accordance with ASC 310-20 and ASC 310-30.
(2) Purchased loans represent loans reported in accordance with ASC 310-20 and ASC 310-30.

As part of the regular quarterly review performed by management to determine if the Company’s allowance for loan losses is appropriate, an analysis is prepared on the loan portfolio based upon a breakout of core loans and consumer, niche and purchased loans. A summary of the allowance for loan losses calculated for the loan components in both the core loan portfolio and the consumer, niche and purchased loan portfolio was shown on the previous pages as of September 30, 2015 and June 30, 2015.

The decrease in the allowance for loan losses to core loans in the third quarter of 2015 compared to the second quarter of 2015 was attributable to a decrease in required ASC 310 reserves (specific reserves) within the core portfolio.

Current credit quality metrics are comparable to the pre-credit crisis levels reported between 2005 and 2008.  However, we are able to carry a slightly lower ratio of allowance for loan losses to total loans than during the pre-credit crisis period as the result of the fact that the mix of the Company's loan portfolio is now more heavily weighted toward niche and purchased loans which historically require lower reserves.  The niche and purchased components of our total loan portfolio now comprise 40% as compared to 23% of the total loan portfolio at December 31, 2005.  Our current loan portfolio is comprised of a core portion totaling $9.7 billion with a 0.92% of allowance for loan losses and a niche and purchased component totaling $6.6 billion that requires 0.20% of allowance for loan losses.

Purchased loans acquired in a business combination are recorded at estimated fair value on their purchase date. In accordance with accounting guidance, credit deterioration on purchased loans is recorded as a credit discount at the time of purchase instead of as an increase to the allowance for loan losses. For analysis purposes, the Company has combined the non-accretable credit discounts recorded on purchased loans with the total allowance for loan losses in the previous tables to present the total credit reserves available on its loan portfolio. The total allowance for loan losses and non-accretable credit discounts on purchased loans was 0.82% of the total loan portfolio as of September 30, 2015 as compared to 0.74% as of June 30, 2015. The Company expects the total allowance for loan losses and non-accretable credit discounts on purchased loans to total loans ratio to increase in periods that have acquisitions and decrease in periods without acquisitions, based on the performance of the purchased loan portfolios.

The table below shows the aging of the Company’s loan portfolio at September 30, 2015:

						90+ days				60-89				30-59
As of September 30, 2015						and still				days past				days past
(Dollars in thousands)		Nonaccrual				accruing				due				due				Current				Total Loans
Loan Balances:
Commercial
Commercial and industrial		$	12,006			$	—			$	2,731			$	9,331			$	2,622,207			$	2,646,275
Franchise		—				—				80				376				221,545				222,001
Mortgage warehouse lines of credit		—				—				—				—				136,614				136,614
Community Advantage - homeowners association		—				—				44				—				123,165				123,209
Aircraft		—				—				—				378				5,993				6,371
Asset-based lending		12				—				1,313				247				800,798				802,370
Tax exempt		—				—				—				—				232,667				232,667
Leases		—				—				—				89				205,697				205,786
Other		—				—				—				—				1,953				1,953
PCI - commercial (1)		—				217				—				39				22,683				22,939
Total commercial		12,018				217				4,168				10,460				4,373,322				4,400,185
Commercial real-estate
Residential construction		—				—				—				1,141				60,130				61,271
Commercial construction		31				—				—				2,394				283,538				285,963
Land		1,756				—				—				2,207				75,113				79,076
Office		4,045				—				10,861				2,362				773,043				790,311
Industrial		11,637				—				786				897				622,804				636,124
Retail		2,022				—				1,536				821				781,463				785,842
Multi-family		1,525				—				512				744				684,878				687,659
Mixed use and other		7,601				—				2,340				12,871				1,797,516				1,820,328
PCI - commercial real-estate (1)		—				13,547				299				583				146,563				160,992
Total commercial real-estate		28,617				13,547				16,334				24,020				5,225,048				5,307,566
Home equity		8,365				—				811				4,124				784,165				797,465
Residential real estate		14,557				—				1,017				1,195				551,292				568,061
PCI - residential real estate (1)		—				424				323				411				2,524				3,682
Premium finance receivables
Commercial insurance loans		13,751				8,231				6,664				13,659				2,364,770				2,407,075
Life insurance loans		—				—				9,656				2,627				2,314,406				2,326,689
PCI - life insurance loans (1)		—				—				—				—				373,586				373,586
Consumer and other		297				140				56				935				130,474				131,902
Total loans, net of unearned income, excluding covered loans		$	77,605			$	22,559			$	39,029			$	57,431			$	16,119,587			$	16,316,211
Covered loans		6,540				7,626				1,392				802				152,249				168,609
Total loans, net of unearned income		$	84,145			$	30,185			$	40,421			$	58,233			$	16,271,836			$	16,484,820

(1) PCI loans represent loans acquired with evidence of credit quality deterioration since origination, in accordance with ASC 310-30. Loan agings are based upon contractually required payments.

As of September 30, 2015 Aging as a % of Loan Balance		Nonaccrual			90+ days and still accruing			60-89 days past due			30-59 days past due			Current			Total Loans
Commercial
Commercial and industrial		0.5	%		—	%		0.1	%		0.4	%		99.0	%		100.0	%
Franchise		—			—			—			0.2			99.8			100.0
Mortgage warehouse lines of credit		—			—			—			—			100.0			100.0
Community Advantage - homeowners association		—			—			—			—			100.0			100.0
Aircraft		—			—			—			5.9			94.1			100.0
Asset-based lending		—			—			0.2			—			99.8			100.0
Tax exempt		—			—			—			—			100.0			100.0
Leases		—			—			—			—			100.0			100.0
Other		—			—			—			—			100.0			100.0
PCI - commercial(1)		—			0.9			—			0.2			98.9			100.0
Total commercial		0.3			—			0.1			0.2			99.4			100.0
Commercial real-estate
Residential construction		—			—			—			1.9			98.1			100.0
Commercial construction		—			—			—			0.8			99.2			100.0
Land		2.2			—			—			2.8			95.0			100.0
Office		0.5			—			1.4			0.3			97.8			100.0
Industrial		1.8			—			0.1			0.1			98.0			100.0
Retail		0.3			—			0.2			0.1			99.4			100.0
Multi-family		0.2			—			0.1			0.1			99.6			100.0
Mixed use and other		0.4			—			0.1			0.7			98.8			100.0
PCI - commercial real-estate (1)		—			8.4			0.2			0.4			91.0			100.0
Total commercial real-estate		0.5			0.3			0.3			0.5			98.4			100.0
Home equity		1.0			—			0.1			0.5			98.4			100.0
Residential real estate		2.6			—			0.2			0.2			97.0			100.0
PCI - residential real estate(1)		—			11.5			8.8			11.2			68.5			100.0
Premium finance receivables
Commercial insurance loans		0.6			0.4			0.3			0.6			98.1			100.0
Life insurance loans		—			—			0.4			0.1			99.5			100.0
PCI - life insurance loans (1)		—			—			—			—			100.0			100.0
Consumer and other		0.2			0.1			—			0.7			99.0			100.0
Total loans, net of unearned income, excluding covered loans		0.5	%		0.1	%		0.2	%		0.4	%		98.8	%		100.0	%
Covered loans		3.9			4.5			0.8			0.5			90.3			100.0
Total loans, net of unearned income		0.5	%		0.2	%		0.2	%		0.4	%		98.7	%		100.0	%

As of September 30, 2015, $39.0 million of all loans, excluding covered loans, or 0.2%, were 60 to 89 days past due and $57.4 million, or 0.4%, were 30 to 59 days (or one payment) past due. As of June 30, 2015, $21.0 million of all loans, excluding covered loans, or 0.1%, were 60 to 89 days past due and $52.2 million, or 0.3%, were 30 to 59 days (or one payment) past due. The majority 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 ratios. Home equity loans at September 30, 2015 that are current with regard to the contractual terms of the loan agreement represent 98.4% of the total home equity portfolio. Residential real estate loans at September 30, 2015 that are current with regards to the contractual terms of the loan agreements comprise 96.9% of total residential real estate loans outstanding, which includes purchased non-covered residential real-estate.

The table below shows the aging of the Company’s loan portfolio at June 30, 2015:

						90+ days				60-89				30-59
As of June 30, 2015						and still				days past				days past
(Dollars in thousands)		Nonaccrual				accruing				due				due				Current				Total Loans
Loan Balances:
Commercial
Commercial and industrial		$	4,424			$	—			$	1,846			$	6,027			$	2,522,162			$	2,534,459
Franchise		905				—				113				396				227,185				228,599
Mortgage warehouse lines of credit		—				—				—				—				213,797				213,797
Community Advantage - homeowners association		—				—				—				—				114,883				114,883
Aircraft		—				—				—				—				6,831				6,831
Asset-based lending		—				—				1,767				7,423				823,265				832,455
Tax exempt		—				—				—				—				199,185				199,185
Leases		65				—				—				—				187,565				187,630
Other		—				—				—				—				2,772				2,772
PCI - commercial(1)		—				474				—				233				9,026				9,733
Total commercial		5,394				474				3,726				14,079				4,306,671				4,330,344
Commercial real-estate
Residential construction		—				—				—				4				57,598				57,602
Commercial construction		19				—				—				—				249,524				249,543
Land		2,035				—				1,123				2,399				82,280				87,837
Office		6,360				701				163				2,601				744,992				754,817
Industrial		2,568				—				18				484				624,337				627,407
Retail		2,352				—				896				2,458				744,285				749,991
Multi-family		1,730				—				933				223				665,562				668,448
Mixed use and other		8,119				—				2,405				3,752				1,577,846				1,592,122
PCI - commercial real-estate (1)		—				15,646				3,490				2,798				40,889				62,823
Total commercial real-estate		23,183				16,347				9,028				14,719				4,787,313				4,850,590
Home equity		5,695				—				511				3,365				702,779				712,350
Residential real estate		16,631				—				2,410				1,205				480,427				500,673
PCI - residential real estate (1)		—				264				84				—				1,994				2,342
Premium finance receivables
Commercial insurance loans		15,156				9,053				5,048				11,071				2,420,080				2,460,408
Life insurance loans		—				351				—				6,823				2,145,981				2,153,155
PCI - life insurance loans (1)		—				—				—				—				384,320				384,320
Consumer and other		280				110				196				919				117,963				119,468
Total loans, net of unearned income, excluding covered loans		$	66,339			$	26,599			$	21,003			$	52,181			$	15,347,528			$	15,513,650
Covered loans		6,353				10,030				1,333				1,720				173,974				193,410
Total loans, net of unearned income		$	72,692			$	36,629			$	22,336			$	53,901			$	15,521,502			$	15,707,060

(1) PCI loans represent loans acquired with evidence of credit quality deterioration since origination, in accordance with ASC 310-30. Loan agings are based upon contractually required payments.

As of June 30, 2015 Aging as a % of Loan Balance:		Nonaccrual			90+ days and still accruing			60-89 days past due			30-59 days past due			Current			Total Loans
Commercial
Commercial and industrial		0.2	%		—	%		0.1	%		0.2	%		99.5	%		100.0	%
Franchise		0.4			—			—			0.2			99.4			100.0
Mortgage warehouse lines of credit		—			—			—			—			100.0			100.0
Community Advantage - homeowners association		—			—			—			—			100.0			100.0
Aircraft		—			—			—			—			100.0			100.0
Asset-based lending		—			—			0.2			0.9			98.9			100.0
Tax exempt		—			—			—			—			100.0			100.0
Leases		—			—			—			—			100.0			100.0
Other		—			—			—			—			100.0			100.0
PCI - commercial(1)		—			4.9			—			2.4			92.7			100.0
Total commercial		0.1			—			0.1			0.3			99.5			100.0
Commercial real-estate
Residential construction		—			—			—			—			100.0			100.0
Commercial construction		—			—			—			—			100.0			100.0
Land		2.3			—			1.3			2.7			93.7			100.0
Office		0.8			0.1			—			0.3			98.8			100.0
Industrial		0.4			—			—			0.1			99.5			100.0
Retail		0.3			—			0.1			0.3			99.3			100.0
Multi-family		0.3			—			0.1			—			99.6			100.0
Mixed use and other		0.5			—			0.2			0.2			99.1			100.0
PCI - commercial real-estate (1)		—			24.9			5.6			4.5			65.0			100.0
Total commercial real-estate		0.5			0.3			0.2			0.3			98.7			100.0
Home equity		0.8			—			0.1			0.5			98.6			100.0
Residential real estate		3.3			—			0.5			0.2			96.0			100.0
PCI - residential real estate (1)		—			11.3			3.6			—			85.1			100.0
Premium finance receivables
Commercial insurance loans		0.6			0.5			0.2			0.4			98.3			100.0
Life insurance loans		—			—			—			0.3			99.7			100.0
PCI - life insurance loans (1)		—			—			—			—			100.0			100.0
Consumer and other		0.2			0.1			0.2			0.8			98.7			100.0
Total loans, net of unearned income, excluding covered loans		0.4	%		0.2	%		0.1	%		0.3	%		99.0	%		100.0	%
Covered loans		3.3			5.2			0.7			0.9			89.9			100.0
Total loans, net of unearned income		0.5	%		0.2	%		0.1	%		0.3	%		98.9	%		100.0	%

Non-performing Assets, excluding covered assets

The following table sets forth Wintrust’s non-performing assets and troubled debt restructurings  ("TDRs") performing under the contractual terms of the loan agreement, excluding covered assets and non-covered PCI loans, at the dates indicated.

		September 30,				June 30,				September 30,
(Dollars in thousands)		2015				2015				2014
Loans past due greater than 90 days and still accruing(1):
Commercial		$	—			$	—			$	—
Commercial real-estate		—				701				—
Home equity		—				—				—
Residential real-estate		—				—				—
Premium finance receivables - commercial		8,231				9,053				7,115
Premium finance receivables - life insurance		—				351				—
Consumer and other		140				110				175
Total loans past due greater than 90 days and still accruing		8,371				10,215				7,290
Non-accrual loans(2):
Commercial		12,018				5,394				10,455
Commercial real-estate		28,617				23,183				27,363
Home equity		8,365				5,695				5,696
Residential real-estate		14,557				16,631				15,730
Premium finance receivables - commercial		13,751				15,156				14,110
Premium finance receivables - life insurance		—				—				—
Consumer and other		297				280				426
Total non-accrual loans		77,605				66,339				73,780
Total non-performing loans:
Commercial		12,018				5,394				10,455
Commercial real-estate		28,617				23,884				27,363
Home equity		8,365				5,695				5,696
Residential real-estate		14,557				16,631				15,730
Premium finance receivables - commercial		21,982				24,209				21,225
Premium finance receivables - life insurance		—				351				—
Consumer and other		437				390				601
Total non-performing loans		$	85,976			$	76,554			$	81,070
Other real estate owned		29,053				33,044				41,506
Other real estate owned - from acquisitions		22,827				9,036				8,871
Other repossessed assets		193				231				292
Total non-performing assets		$	138,049			$	118,865			$	131,739
TDRs performing under the contractual terms of the loan agreement		$	49,173			$	52,174			$	69,868
Total non-performing loans by category as a percent of its own respective category’s period-end balance:
Commercial		0.27		%		0.12		%		0.28		%
Commercial real-estate		0.54				0.49				0.61
Home equity		1.05				0.80				0.79
Residential real-estate		2.55				3.31				3.34
Premium finance receivables - commercial		0.91				0.98				0.89
Premium finance receivables - life insurance		—				0.01				—
Consumer and other		0.33				0.33				0.40
Total loans, net of unearned income		0.53		%		0.49		%		0.58		%
Total non-performing assets as a percentage of total assets		0.63		%		0.57		%		0.69		%
Allowance for loan losses as a percentage of total non-performing loans		119.79		%		130.89		%		112.27		%

(1) As of the dates shown, no TDRs were past due greater than 90 days and still accruing interest.
(2) Non-accrual loans included TDRs totaling $10.1 million, $10.6 million, and $13.5 million as of September 30, 2015,  June 30, 2015, and September 30, 2014, respectively.

Non-performing Commercial and Commercial Real Estate

Non-performing commercial and commercial real estate loans totaled $40.6 million as of September 30, 2015 compared to $29.3 million at June 30, 2015 and $37.8 million at September 30, 2014. The increase compared to June 30, 2015 is primarily the result of a single customer relationship totaling $9.3 million being placed in nonaccrual status at quarter-end.

Management is pursuing the resolution of all credits in this category. At this time, management believes reserves are appropriate to absorb inherent losses that are expected upon the ultimate resolution of these credits.

Non-performing Residential Real Estate and Home Equity

Non-performing home equity and residential real estate loans totaled $22.9 million as of September 30, 2015. The balance remained relatively unchanged compared to $22.3 million and $21.4 million at June 30, 2015 and September 30, 2014, respectively. The September 30, 2015 non-performing balance is comprised of $14.6 million of residential real estate (71 individual credits) and $8.4 million of home equity loans (50 individual credits). On average, this is approximately 8 non-performing residential real estate loans and home equity loans per chartered bank within the Company. The Company believes control and collection of these loans is very manageable. At this time, management believes reserves are adequate to absorb inherent losses that are expected upon the ultimate resolution of these credits.

Non-performing Commercial Insurance Premium Finance Receivables

The table below presents the level of non-performing property and casualty premium finance receivables as of September 30, 2015, June 30, 2015 and September 30, 2014 and the amount of net charge-offs for the quarters then ended.

		September 30,				June 30,				September 30,
(Dollars in thousands)		2015				2015				2014
Non-performing premium finance receivables - commercial		$	21,982			$	24,209			$	21,225
- as a percent of premium finance receivables - commercial outstanding		0.91		%		0.98		%		0.89		%
Net charge-offs of premium finance receivables - commercial		$	1,317			$	1,068			$	1,268
- annualized as a percent of average premium finance receivables - commercial		0.21		%		0.18		%		0.20		%

Fluctuations in this category may occur due to timing and nature of account collections from insurance carriers. The Company’s underwriting standards, regardless of the condition of the economy, have remained consistent. We anticipate that net charge-offs and non-performing asset levels in the near term will continue to be at levels that are within acceptable operating ranges for this category of loans. Management is comfortable with administering the collections at this level of non-performing property and casualty premium finance receivables and believes reserves are adequate to absorb inherent losses that are expected upon the ultimate resolution of these credits.

Due to the nature of collateral for commercial premium finance receivables, it customarily takes 60-150 days to convert the collateral into cash. Accordingly, the level of non-performing commercial premium finance receivables is not necessarily indicative of the loss inherent in the portfolio. In the event of default, Wintrust has the right to cancel the insurance policy and collect the unearned portion of the premium from the insurance carrier. In the event of cancellation, the cash returned in payment of the unearned premium by the insurer should generally be sufficient to cover the receivable balance, the interest and other charges due. Due to notification requirements and processing time by most insurance carriers, many receivables will become delinquent beyond 90 days while the insurer is processing the return of the unearned premium. Management continues to accrue interest until maturity as the unearned premium is ordinarily sufficient to pay-off the outstanding balance and contractual interest due.

Nonperforming Loans Rollforward

The table below presents a summary of the changes in the balance of non-performing loans, excluding covered loans, for the periods presented:

		Three Months Ended												Nine Months Ended
		September 30,				June 30,				September 30,				September 30,				September 30,
(Dollars in thousands)		2015				2015				2014				2015				2014
Balance at beginning of period		$	76,554			$	81,772			$	88,650			$	78,677			$	103,334
Additions, net		24,333				8,828				10,389				42,141				31,187
Return to performing status		(1,028		)		(847		)		(3,745		)		(2,591		)		(6,812		)
Payments received		(5,468		)		(6,580		)		(4,792		)		(16,417		)		(11,605		)
Transfer to OREO and other repossessed assets		(1,773		)		(4,365		)		(2,782		)		(8,678		)		(22,536		)
Charge-offs		(4,081		)		(2,755		)		(4,751		)		(8,637		)		(14,127		)
Net change for niche loans (1)		(2,561		)		501				(1,899		)		1,481				1,629
Balance at end of period		$	85,976			$	76,554			$	81,070			$	85,976			$	81,070

(1) This includes activity for premium finance receivables and indirect consumer loans.

TDRs

The table below presents a summary of TDRs as of the respective date, presented by loan category and accrual status:

		September 30,				June 30,				September 30,
(Dollars in thousands)		2015				2015				2014
Accruing TDRs:
Commercial		$	5,717			$	6,039			$	5,517
Commercial real estate		39,867				42,210				61,288
Residential real estate and other		3,589				3,925				3,063
Total accrual		$	49,173			$	52,174			$	69,868
Non-accrual TDRs: (1)
Commercial		$	147			$	165			$	927
Commercial real estate		5,778				6,240				9,153
Residential real estate and other		4,222				4,197				3,437
Total non-accrual		$	10,147			$	10,602			$	13,517
Total TDRs:
Commercial		$	5,864			$	6,204			$	6,444
Commercial real estate		45,645				48,450				70,441
Residential real estate and other		7,811				8,122				6,500
Total TDRs		$	59,320			$	62,776			$	83,385
Weighted-average contractual interest rate of TDRs		4.04		%		4.05		%		4.05		%

(1) Included in total non-performing loans.

At September 30, 2015, the Company had $59.3 million in loans modified in TDRs.  The $59.3 million in TDRs represents 114 credits in which economic concessions were granted to certain borrowers to better align the terms of their loans with their current ability to pay.  The balance decreased from $62.8 million representing 122 credits at June 30, 2015 and decreased from $83.4 million representing 145 credits at September 30, 2014.

The table below presents a summary of TDRs as of September 30, 2015 and September 30, 2014, and shows the changes in the balance during the periods presented:

Three Months Ended September 30, 2015
(Dollars in thousands)		Commercial				Commercial Real Estate				Residential Real Estate and Other				Total
Balance at beginning of period		$	6,204			$	48,450			$	8,122			$	62,776
Additions during the period		—								222				222
Reductions:
Charge-offs		—				(267		)		(52		)		(319		)
Transferred to OREO and other repossessed assets		—				—				(175		)		(175		)
Removal of TDR loan status (1)		(234		)		(1,581		)		—				(1,815		)
Payments received, net		(106		)		(957		)		(306		)		(1,369		)
Balance at period end		$	5,864			$	45,645			$	7,811			$	59,320

Three Months Ended September 30, 2014
(Dollars in thousands)		Commercial				Commercial Real Estate				Residential Real Estate and Other				Total
Balance at beginning of period		$	6,417			$	75,834			$	5,856			$	88,107
Additions during the period		—				—				667				667
Reductions:
Charge-offs		(28		)		(2,584		)		—				(2,612		)
Transferred to OREO and other repossessed assets		—				—				—				—
Removal of TDR loan status (1)		—				—				—				—
Payments received, net		55				(2,809		)		(23		)		(2,777		)
Balance at period end		$	6,444			$	70,441			$	6,500			$	83,385

Nine Months Ended September 30, 2015
(Dollars in thousands)		Commercial				Commercial Real Estate				Residential Real Estate and Other				Total
Balance at beginning of period		$	7,576			$	67,623			$	7,076			$	82,275
Additions during the period		—				169				1,664				1,833
Reductions:
Charge-offs		(397		)		(268		)		(92		)		(757		)
Transferred to OREO and other repossessed assets		(562		)		(2,290		)		(279		)		(3,131		)
Removal of TDR loan status (1)		(471		)		(10,151		)		—				(10,622		)
Payments received, net		(282		)		(9,438		)		(558		)		(10,278		)
Balance at period end		$	5,864			$	45,645			$	7,811			$	59,320

(1) Loan was previously classified as a troubled debt restructuring and subsequently performed in compliance with the loan’s modified terms for a period of six months (including over a calendar year-end) at a modified interest rate which represented a market rate at the time of restructuring. Per our TDR policy, the TDR classification is removed.

Nine Months Ended September 30, 2014
(Dollars in thousands)		Commercial				Commercial Real Estate				Residential Real Estate and Other				Total
Balance at beginning of period		$	7,388			$	93,535			$	6,180			$	107,103
Additions during the period		88				7,177				887				8,152
Reductions:
Charge-offs		(51		)		(6,316		)		(479		)		(6,846		)
Transferred to OREO and other repossessed assets		(252		)		(16,057		)		—				(16,309		)
Removal of TDR loan status (1)		(383		)		—				—				(383		)
Payments received, net		(346		)		(7,898		)		(88		)		(8,332		)
Balance at period end		$	6,444			$	70,441			$	6,500			$	83,385

(1) Loan was previously classified as a troubled debt restructuring and subsequently performed in compliance with the loan’s modified terms for a period of six months (including over a calendar year-end) at a modified interest rate which represented a market rate at the time of restructuring. Per our TDR policy, the TDR classification is removed.

Each TDR was reviewed for impairment at September 30, 2015 and approximately $3.4 million of impairment was present and appropriately reserved for through the Company’s normal reserving methodology in the Company’s allowance for loan losses.  For TDRs in which impairment is calculated by the present value of future cash flows, the Company records interest income representing the decrease in impairment resulting from the passage of time during the respective period, which differs from interest income from contractually required interest on these specific loans.  For the three months ended September 30, 2015 and 2014, the Company recorded $98,000 and $294,000, respectively, in interest income representing this decrease in impairment. For the nine months ended September 30, 2015 and 2014, the Company recorded $385,000 and $529,000, respectively, in interest income.

Other Real Estate Owned

The table below presents a summary of other real estate owned, excluding covered other real estate owned, as of September 30, 2015, June 30, 2015 and September 30, 2014, and shows the activity for the respective period and the balance for each property type:

		Three Months Ended
		September 30,				June 30,				September 30,
(Dollars in thousands)		2015				2015				2014
Balance at beginning of period		$	42,080			$	42,257			$	59,588
Disposals/resolved		(7,611		)		(6,075		)		(12,196		)
Transfers in at fair value, less costs to sell		6,159				6,412				3,150
Transfers in from covered OREO subsequent to loss share expiration		7,316				—				—
Additions from acquisition		4,617				—				—
Fair value adjustments		(681		)		(514		)		(165		)
Balance at end of period		$	51,880			$	42,080			$	50,377
		Period End
		September 30,				June 30,				September 30,
Balance by Property Type		2015				2015				2014
Residential real estate		$	12,577			$	6,408			$	8,754
Residential real estate development		3,147				3,031				3,135
Commercial real estate		36,156				32,641				38,488
Total		$	51,880			$	42,080			$	50,377

Covered Assets

In conjunction with FDIC-assisted transactions, the Company entered into loss share agreements with the FDIC. These agreements cover realized losses on loans, foreclosed real estate and certain other assets and require the Company to record loss share assets and liabilities that are measured separately from the loan portfolios because they are not contractually embedded in the loans and are not transferable with the loans should the Company choose to dispose of them. Fair values at the acquisition dates were estimated based on projected cash flows available for loss-share based on the credit adjustments estimated for each loan pool and the loss share percentages. The loss share assets and liabilities are also separately measured from the related loans and foreclosed real estate and recorded on the Consolidated Statements of Condition. Subsequent to the acquisition date, reimbursements received from the FDIC for actual incurred losses will reduce any loss share assets. Reductions to expected losses, to the extent such reductions to expected losses are the result of an improvement to the actual or expected cash flows from the covered assets, will also reduce any loss share asset and, if necessary, increase any loss share liability when necessary reductions exceed the current value of the loss share asset. The increases in cash flows for the purchased loans are recognized as interest income prospectively. In accordance with clawback provisions included in loss share agreements with the FDIC, the Company may be required to reimburse the FDIC when actual losses are less than certain thresholds established for each loss share agreement. The balance of these estimated reimbursements in accordance with clawback provisions and any related amortization are adjusted periodically for changes in the expected losses on covered assets. Estimated reimbursements from clawback provisions are recorded as a reduction to the loss share asset or, if necessary, an increase to the loss share liability on the Consolidated Statements of Condition. The allowance for loan losses for loans acquired in FDIC-assisted transactions is determined without giving consideration to the amounts recoverable through loss share agreements (since the loss share agreements are separately accounted for and thus presented “gross” on the balance sheet). On the Consolidated Statements of Income, the provision for credit losses is reported net of changes in the amount recoverable under the loss share agreements.

The following table provides a comparative analysis for the period end balances of the covered asset components and any changes in the allowance for covered loan losses.

		September 30,				June 30,				September 30,
(Dollars in thousands)		2015				2015				2014
Period End Balances:
Loans		$	168,609			$	193,410			$	254,605
Other real estate owned		28,644				35,419				48,568
Other assets		686				686				2,242
FDIC Indemnification (liability) asset		(3,033		)		3,429				27,359
Total net covered assets		$	194,906			$	232,944			$	332,774
Allowance for Covered Loan Losses Rollforward:
Balance at beginning of quarter:		$	2,215			$	1,878			$	1,667
Provision for covered loan losses before benefit attributable to FDIC loss share agreements		(1,716		)		(1,094		)		(818		)
Benefit attributable to FDIC loss share agreements		1,373				875				654
Net provision for covered loan losses		(343		)		(219		)		(164		)
Decrease in FDIC indemnification asset		(1,373		)		(875		)		(654		)
Loans charged-off		(287		)		(140		)		(293		)
Recoveries of loans charged-off		2,706				1,571				2,099
Net recoveries		2,419				1,431				1,806
Balance at end of quarter		$	2,918			$	2,215			$	2,655

Changes in Accretable Yield

The excess of cash flows expected to be collected over the carrying value of loans accounted for under ASC 310-30 is referred to as the accretable yield and is recognized in interest income using an effective yield method over the remaining life of the pool of loans. The accretable yield is affected by:

• Changes in interest rate indices for variable rate loans accounted for under ASC 310-30 – Expected future cash flows are based on the variable rates in effect at the time of the regular evaluations of cash flows expected to be collected;
  
• Changes in prepayment assumptions – Prepayments affect the estimated life of loans accounted for under ASC 310-30 which may change the amount of interest income, and possibly principal, expected to be collected; and
  
• Changes in the expected principal and interest payments over the estimated life – Updates to expected cash flows are driven by the credit outlook and actions taken with borrowers. Changes in expected future cash flows from loan modifications are included in the regular evaluations of cash flows expected to be collected.
  
  

The following table provides activity for the accretable yield of loans accounted for under ASC 310-30.

		Three Months Ended								Nine Months Ended
		September 30,				September 30,				September 30,				September 30,
(Dollars in thousands)		2015				2014				2015				2014
Accretable yield, beginning balance		$	63,643			$	97,281			$	79,102			$	115,909
Acquisitions		10,407				—				11,305				—
Accretable yield amortized to interest income		(5,939		)		(7,847		)		(18,359		)		(28,438		)
Accretable yield amortized to indemnification asset(1)		(3,280		)		(8,784		)		(10,945		)		(25,593		)
Reclassification from non-accretable difference(2)		2,298				2,584				5,154				29,092
(Decreases) increases in interest cash flows due to payments and changes in interest rates		(610		)		4,675				262				(3,061		)
Accretable yield, ending balance (3)		$	66,519			$	87,909			$	66,519			$	87,909

(1) Represents the portion of the current period accreted yield, resulting from lower expected losses, applied to reduce the loss share indemnification asset.
(2) Reclassification is the result of subsequent increases in expected principal cash flows.
(3) As of September 30, 2015, the Company estimates that the remaining accretable yield balance to be amortized to the indemnification asset for the bank acquisitions is $10.0 million. The remainder of the accretable yield related to bank acquisitions is expected to be amortized to interest income.

Accretion to interest income accounted for under ASC 310-30 totaled $5.9 million and $7.8 million in the third quarter of 2015 and 2014, respectively. For the nine months ended September 30, 2015 and 2014, the Company recorded accretion to interest income of $18.4 million and $28.4 million, respectively. These amounts include accretion from both covered and non-covered loans, and are included together within interest and fees on loans in the Consolidated Statements of Income.

Items Impacting Comparative Financial Results:

Acquisitions

On July 24, 2015, the Company completed its acquisition of Community Financial Shares, Inc ("CFIS"). CFIS was the parent company of Community Bank - Wheaton/Glen Ellyn ("CBWGE"). Through this transaction, prior to purchase accounting adjustments, the Company acquired CBWGE's four banking locations in Wheaton and Glen Ellyn, Illinois, approximately $327 million in assets and approximately $301 million in deposits.
       
On July 17, 2015, the Company completed its acquisition of Suburban Illinois Bancorp, Inc. ("Suburban"). Suburban was the parent company of Suburban Bank & Trust Company ("SBT"). Through this transaction, prior to purchase accounting adjustments, the Company acquired SBT's ten banking locations in Chicago and its suburbs, approximately $480 million in assets and approximately $417 million in deposits.

On July 1, 2015, the Company, through its wholly-owned subsidiary Wintrust Bank, completed its acquisition of North Bank.  Through this transaction, prior to purchase accounting adjustments, Wintrust Bank acquired two banking locations, $112 million in assets and approximately $100 million in deposits.

On January 16, 2015 the Company completed its acquisition of Delavan Bancshares, Inc. ("Delavan"). Delavan was the parent company of Community Bank CBD. Through this transaction, Town Bank acquired four banking locations, approximately $224 million in assets and approximately $170 million in deposits.

On August 8, 2014, the Company, through its subsidiary Town Bank, completed its acquisition of certain branch offices and deposits of Talmer Bank & Trust. Through this transaction, Town Bank acquired 11 branch offices and approximately $355 million in deposits.

On July 11, 2014, the Company, through its subsidiary Town Bank, completed its acquisition of the Pewaukee, Wisconsin branch of THE National Bank. In addition to the banking facility,  Town Bank acquired approximately $75 million in loans and approximately $36 million in deposits.

On May 16, 2014, the Company, through its subsidiary Hinsdale Bank and Trust Company ("Hinsdale Bank"), completed its acquisition of the Stone Park branch office and certain related deposits of Urban Partnership Bank.

On April 28, 2014, the Company, through its subsidiary First Insurance Funding of Canada, Inc., completed its acquisition of 100% of the shares of each of Policy Billing Services Inc. and Equity Premium Finance Inc., two affiliated Canadian insurance premium funding and payment services companies.

On February 28, 2014, the Company, through its subsidiary Lake Forest Bank and Trust Company ("Lake Forest Bank"), completed its acquisition of a bank branch from Baytree National Bank & Trust Company. In addition to the banking facility, Lake Forest Bank acquired certain assets and approximately $15 million of deposits.    

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, Hinsdale Bank & Trust Company, Wintrust Bank in Chicago, Libertyville Bank & Trust Company, Barrington Bank & Trust Company, N.A., Crystal Lake Bank & Trust Company, N.A., Northbrook Bank & Trust Company, Schaumburg Bank & Trust Company, N.A., Village Bank & Trust in Arlington Heights, Beverly Bank & Trust Company, N.A. in Chicago, Wheaton Bank & Trust Company, State Bank of The Lakes in Antioch, Old Plank Trail Community Bank, N.A. in New Lenox, St. Charles Bank & Trust Company and Town Bank in Hartland, Wisconsin. The banks also operate facilities in Illinois in Algonquin, Aurora, Bloomingdale, Buffalo Grove, Cary, Chicago, Clarendon Hills, Crete, Deerfield, Downers Grove, Elgin, Elmhurst, Evergreen Park, Frankfort, Geneva, Glen Ellyn, Glencoe, Glenview, Gurnee, Grayslake, Hanover Park, Highland Park, Highwood, Hoffman Estates, Island Lake, Itasca, Joliet, Lake Bluff, Lake Villa, Lansing, Lemont, Lindenhurst, Lynwood, Markham, McHenry, Mokena, Mount Prospect, Mundelein, Naperville, North Chicago, Northfield, Norridge, Oak Lawn, Orland Park, Palatine, Park Ridge, Plainfield, Prospect Heights, Ravinia, Riverside, Rogers Park, Roselle, Shorewood, Skokie, South Holland, Spring Grove, Steger, Stone Park, Vernon Hills, Wauconda, Western Springs, Willowbrook, Wilmette, Winnetka and Wood Dale and in Albany, Burlington, Clinton, Darlington, Delafield, Delavan, Elm Grove, Genoa City, Kenosha, Lake Geneva, Madison, Menomenee Falls, Monroe, Pewaukee, Sharon, Wales, Walworth and Wind Lake, Wisconsin and Dyer, Indiana.

Additionally, the Company operates various non-bank business units:

• First Insurance Funding Corporation, one of the largest insurance premium finance companies operating in the United States, serves commercial and life insurance loan customers throughout the country.
  
• First Insurance Funding of Canada serves commercial insurance loan customers throughout Canada
  
• Tricom, Inc. of Milwaukee provides high-yielding, short-term accounts receivable financing and value-added out-sourced administrative services, such as data processing of payrolls, billing and cash management services, to temporary staffing service clients located throughout the United States.
  
• Wintrust Mortgage, a division of Barrington Bank & Trust Company, 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.
  
• Wayne Hummer Investments, LLC is a broker-dealer providing a full range of private client and brokerage services to clients and correspondent banks located primarily in the Midwest.
  
• Great Lakes Advisors LLC provides money management services and advisory services to individual accounts.
  
• The Chicago Trust Company, a trust subsidiary, allows Wintrust to service customers’ trust and investment needs at each banking location.
  

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,” “point,” “will,” “may,” “should,” “would” and “could.” Forward-looking statements and information are not historical facts, are premised on many factors and assumptions, and represent only management’s expectations, estimates and projections regarding future events. Similarly, these statements are not guarantees of future performance and involve certain risks and uncertainties that are difficult to predict, which may include, but are not limited to, those listed below and the Risk Factors discussed under Item 1A of the Company’s 2014 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: 

• negative economic conditions that adversely affect the economy, housing prices, the job market and other factors that may affect the Company’s liquidity and the performance of its loan portfolios, particularly in the markets in which it operates;
  
• 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;
  
• market conditions in the commercial real estate market 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 and lease 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 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);
  
• 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, including those resulting from our loss-sharing arrangements with the FDIC;
  
• any negative perception of the Company’s reputation or financial strength;
  
• ability 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 to use technology to provide products and services that will satisfy customer demands and create efficiencies in operations;
  
• adverse effects on our information technology systems resulting from failures, human error or tampering;
  
• 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, including any effect on our reputation;
  
• losses incurred in connection with repurchases and indemnification payments related to mortgages;
  
• 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;
  
• changes in accounting standards, rules and interpretations and the impact on the Company’s financial statements;
  
• the ability of the Company to receive dividends from its subsidiaries;
  
• a decrease in the Company’s regulatory capital ratios, including as a result of further 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 resulting from the Dodd-Frank Act;
  
• a lowering of our credit rating;
  
• changes in U.S. monetary policy;
  
• restrictions upon our ability to market our products to consumers and limitations on our ability to profitably operate our mortgage business resulting from the Dodd-Frank Act;
  
• increased costs of compliance, heightened regulatory capital requirements and other risks associated with changes in regulation and the current regulatory environment, including the Dodd-Frank Act;
  
• 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;
  
• delinquencies or fraud with respect to the Company's commercial equipment finance and leasing business;
  
• 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 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, WEB CAST AND REPLAY

The Company will hold a conference call at 2:00 p.m. (CT) Thursday, October 15, 2015 regarding third quarter and year-to-date 2015 results. Individuals interested in listening should call (877) 363-5049 and enter Conference ID #54092655. A simultaneous audio-only web cast and replay of the conference call may be accessed via the Company’s web site at (http://www.wintrust.com), Investor Relations, Investor News and Events, Presentations & Conference Calls. The text of the third quarter and year-to-date 2015 earnings press release will be available on the home page of the Company’s website at (http://www.wintrust.com) and at the Investor Relations, Investor News and Events, Press Releases link on its website.

WINTRUST FINANCIAL CORPORATION

Supplemental Financial Information

5 Quarter Trends

WINTRUST FINANCIAL CORPORATION - Supplemental Financial Information
Selected Financial Highlights - 5 Quarter Trends
(Dollars in thousands, except per share data)
		Three Months Ended
		September 30,				June 30,				March 31,				December 31,				September 30,
		2015				2015				2015				2014				2014
Selected Financial Condition Data (at end of period):
Total assets		$	22,043,930			$	20,799,924			$	20,382,271			$	20,010,727			$	19,169,345
Total loans, excluding loans held-for-sale and covered loans		16,316,211				15,513,650				14,953,059				14,409,398				14,052,059
Total deposits		18,228,469				17,082,418				16,938,769				16,281,844				16,065,246
Junior subordinated debentures		268,566				249,493				249,493				249,493				249,493
Total shareholders’ equity		2,335,736				2,264,982				2,131,074				2,069,822				2,028,508
Selected Statements of Income Data:
Net interest income		165,540				156,892				151,891				153,719				151,670
Net revenue (1)		230,493				233,905				216,432				211,376				209,622
Net income		38,355				43,831				39,052				38,133				40,224
Net income per common share – Basic		$	0.71			$	0.89			$	0.79			$	0.78			$	0.83
Net income per common share – Diluted		$	0.69			$	0.85			$	0.76			$	0.75			$	0.79
Selected Financial Ratios and Other Data:
Performance Ratios:
Net interest margin (2)		3.33		%		3.41		%		3.42		%		3.46		%		3.46		%
Non-interest income to average assets		1.19		%		1.52		%		1.32		%		1.18		%		1.20		%
Non-interest expense to average assets		2.93		%		3.06		%		3.01		%		2.94		%		2.87		%
Net overhead ratio (2) (3)		1.74		%		1.53		%		1.69		%		1.76		%		1.67		%
Efficiency ratio - FTE (2) (4)		69.02		%		65.64		%		67.90		%		67.59		%		65.76		%
Return on average assets		0.70		%		0.87		%		0.80		%		0.78		%		0.83		%
Return on average common equity		6.60		%		8.38		%		7.64		%		7.51		%		8.09		%
Return on average tangible common equity		8.88		%		10.86		%		9.96		%		9.82		%		10.59		%
Average total assets		$	21,688,450			$	20,256,996			$	19,826,240			$	19,366,670			$	19,127,346
Average total shareholders’ equity		2,310,511				2,156,128				2,114,356				2,057,855				2,020,903
Average loans to average deposits ratio (excluding covered loans)		91.9		%		92.8		%		91.4		%		89.5		%		90.1		%
Average loans to average deposits ratio (including covered loans)		92.9				94.0				92.7				91.0				91.8
Common Share Data at end of period:
Market price per common share		$	53.43			$	53.38			$	47.68			$	46.76			$	44.67
Book value per common share (2)		$	43.12			$	42.24			$	42.30			$	41.52			$	40.74
Tangible common book value per share (2)		$	32.83			$	33.02			$	33.04			$	32.45			$	31.60
Common shares outstanding		48,336,870				47,677,257				47,389,608				46,805,055				46,691,047
Other Data at end of period:(8)
Leverage Ratio(5)		9.4		%		9.8		%		9.2		%		10.2		%		10.0		%
Tier 1 Capital to risk-weighted assets (5)		10.4		%		10.7		%		10.1		%		11.6		%		11.7		%
Common equity Tier 1 capital to risk-weighted assets (5)		8.8		%		9.0		%		9.1		%		N/A				N/A
Total capital to risk-weighted assets (5)		12.7		%		13.1		%		12.5		%		13.0		%		13.1		%
Tangible common equity ratio (TCE) (2) (7)		7.4		%		7.7		%		7.9		%		7.8		%		7.9		%
Tangible common equity ratio, assuming full conversion of convertible preferred stock (2) (7)		8.0		%		8.4		%		8.5		%		8.4		%		8.6		%
Allowance for credit losses (6)		$	103,922			$	101,088			$	95,334			$	92,480			$	91,841
Non-performing loans		85,976				76,554				81,772				78,677				81,070
Allowance for credit losses to total loans (6)		0.64		%		0.65		%		0.64		%		0.64		%		0.65		%
Non-performing loans to total loans		0.53		%		0.49		%		0.55		%		0.55		%		0.58		%
Number of:
Bank subsidiaries		15				15				15				15				15
Banking offices		160				147				146				140				139

(1) Net revenue includes net interest income and non-interest income
(2) See “Supplemental Financial Measures/Ratios” 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 total average assets. A lower ratio indicates a higher degree of efficiency.
(4) The efficiency ratio is calculated by dividing total non-interest expense by tax-equivalent net revenue (less securities gains or losses). A lower ratio indicates more efficient revenue generation.
(5) Capital ratios for current quarter-end are estimated. As of January 1, 2015 capital ratios are calculated under the requirements of Basel III.
(6) The allowance for credit losses includes both the allowance for loan losses and the allowance for unfunded lending-related commitments, but excluding the allowance for covered loan losses.
(7) Total shareholders’ equity minus preferred stock and total intangible assets divided by total assets minus total intangible assets
(8) Asset quality ratios exclude covered loans.

WINTRUST FINANCIAL CORPORATION - SUPPLEMENTAL FINANCIAL INFORMATION
Consolidated Statements of Condition - 5 Quarter Trends
		(Unaudited)				(Unaudited)				(Unaudited)								(Unaudited)
		September 30,				June 30,				March 31,				December 31,				September 30,
(In thousands)		2015				2015				2015				2014				2014
Assets
Cash and due from banks		$	247,341			$	248,094			$	286,743			$	225,136			$	260,694
Federal funds sold and securities purchased under resale agreements		3,314				4,115				4,129				5,571				26,722
Interest bearing deposits with banks		701,106				591,721				697,799				998,437				620,370
Available-for-sale securities, at fair value		2,214,281				2,162,061				1,721,030				1,792,078				1,782,648
Trading account securities		3,312				1,597				7,811				1,206				6,015
Federal Home Loan Bank and Federal Reserve Bank stock		90,308				89,818				92,948				91,582				80,951
Brokerage customer receivables		28,293				29,753				25,287				24,221				26,624
Mortgage loans held-for-sale		347,005				497,283				446,355				351,290				363,303
Loans, net of unearned income, excluding covered loans		16,316,211				15,513,650				14,953,059				14,409,398				14,052,059
Covered loans		168,609				193,410				209,694				226,709				254,605
Total loans		16,484,820				15,707,060				15,162,753				14,636,107				14,306,664
Less: Allowance for loan losses		102,996				100,204				94,446				91,705				91,019
Less: Allowance for covered loan losses		2,918				2,215				1,878				2,131				2,655
Net loans		16,378,906				15,604,641				15,066,429				14,542,271				14,212,990
Premises and equipment, net		587,348				571,498				559,281				555,228				555,241
FDIC indemnification asset		—				3,429				10,224				11,846				27,359
Accrued interest receivable and other assets		667,036				556,344				537,117				501,882				494,213
Trade date securities receivable		277,981				—				488,063				485,534				285,627
Goodwill		472,166				421,646				420,197				405,634				406,604
Other intangible assets		25,533				17,924				18,858				18,811				19,984
Total assets		$	22,043,930			$	20,799,924			$	20,382,271			$	20,010,727			$	19,169,345
Liabilities and Shareholders’ Equity
Deposits:
Non-interest bearing		$	4,705,994			$	3,910,310			$	3,779,609			$	3,518,685			$	3,253,477
Interest bearing		13,522,475				13,172,108				13,159,160				12,763,159				12,811,769
Total deposits		18,228,469				17,082,418				16,938,769				16,281,844				16,065,246
Federal Home Loan Bank advances		451,330				444,017				416,036				733,050				347,500
Other borrowings		259,978				261,908				187,006				196,465				51,483
Subordinated notes		140,000				140,000				140,000				140,000				140,000
Junior subordinated debentures		268,566				249,493				249,493				249,493				249,493
Trade date securities payable		617				—				2,929				3,828				—
Accrued interest payable and other liabilities		359,234				357,106				316,964				336,225				287,115
Total liabilities		19,708,194				18,534,942				18,251,197				17,940,905				17,140,837
Shareholders’ Equity:
Preferred stock		251,312				251,312				126,427				126,467				126,467
Common stock		48,422				47,763				47,475				46,881				46,766
Surplus		1,187,407				1,159,052				1,156,542				1,133,955				1,129,975
Treasury stock		(3,964		)		(3,964		)		(3,948		)		(3,549		)		(3,519		)
Retained earnings		901,652				872,690				835,669				803,400				771,519
Accumulated other comprehensive loss		(49,093		)		(61,871		)		(31,091		)		(37,332		)		(42,700		)
Total shareholders’ equity		2,335,736				2,264,982				2,131,074				2,069,822				2,028,508
Total liabilities and shareholders’ equity		$	22,043,930			$	20,799,924			$	20,382,271			$	20,010,727			$	19,169,345

WINTRUST FINANCIAL CORPORATION - SUPPLEMENTAL FINANCIAL INFORMATION
Consolidated Statements of Income (Unaudited) - 5 Quarter Trends
		Three Months Ended
		September 30,				June 30,				March 31,				December 31,				September 30,
(In thousands, except per share data)		2015				2015				2015				2014				2014
Interest income
Interest and fees on loans		$	167,831			$	159,823			$	154,676			$	157,476			$	156,534
Interest bearing deposits with banks		372				305				316				495				409
Federal funds sold and securities purchased under resale agreements		1				1				2				3				12
Available-for-sale securities		16,130				14,071				14,400				13,761				12,767
Trading account securities		19				51				13				45				20
Federal Home Loan Bank and Federal Reserve Bank stock		821				785				769				749				733
Brokerage customer receivables		205				205				181				186				201
Total interest income		185,379				175,241				170,357				172,715				170,676
Interest expense
Interest on deposits		12,436				11,996				11,814				12,431				12,298
Interest on Federal Home Loan Bank advances		2,458				1,812				2,156				2,534				2,641
Interest on other borrowings		1,045				787				788				313				200
Interest on subordinated notes		1,776				1,777				1,775				1,776				1,776
Interest on junior subordinated debentures		2,124				1,977				1,933				1,942				2,091
Total interest expense		19,839				18,349				18,466				18,996				19,006
Net interest income		165,540				156,892				151,891				153,719				151,670
Provision for credit losses		8,322				9,482				6,079				6,133				5,864
Net interest income after provision for credit losses		157,218				147,410				145,812				147,586				145,806
Non-interest income
Wealth management		18,243				18,476				18,100				18,649				17,659
Mortgage banking		27,887				36,007				27,800				24,694				26,691
Service charges on deposit accounts		7,403				6,474				6,297				6,189				6,084
(Losses) gains on available-for-sale securities, net		(98		)		(24		)		524				18				(153		)
Fees from covered call options		2,810				4,565				4,360				2,966				2,107
Trading (losses) gains, net		(135		)		160				(477		)		(507		)		293
Other		8,843				11,355				7,937				5,648				5,271
Total non-interest income		64,953				77,013				64,541				57,657				57,952
Non-interest expense
Salaries and employee benefits		97,749				94,421				90,130				87,633				85,976
Equipment		8,887				7,914				7,836				7,555				7,570
Occupancy, net		12,066				11,401				12,351				11,600				10,446
Data processing		8,127				6,081				5,448				5,313				4,765
Advertising and marketing		6,237				6,406				3,907				3,669				3,528
Professional fees		4,100				5,074				4,664				4,039				4,035
Amortization of other intangible assets		1,350				934				1,013				1,171				1,202
FDIC insurance		3,035				3,047				2,987				2,810				3,211
OREO expense, net		(367		)		841				1,411				2,320				581
Other		18,790				18,178				17,571				17,331				17,186
Total non-interest expense		159,974				154,297				147,318				143,441				138,500
Income before taxes		62,197				70,126				63,035				61,802				65,258
Income tax expense		23,842				26,295				23,983				23,669				25,034
Net income		$	38,355			$	43,831			$	39,052			$	38,133			$	40,224
Preferred stock dividends and discount accretion		4,079				1,580				1,581				1,580				1,581
Net income applicable to common shares		$	34,276			$	42,251			$	37,471			$	36,553			$	38,643
Net income per common share - Basic		$	0.71			$	0.89			$	0.79			$	0.78			$	0.83
Net income per common share - Diluted		$	0.69			$	0.85			$	0.76			$	0.75			$	0.79
Cash dividends declared per common share		$	0.11			$	0.11			$	0.11			$	0.10			$	0.10
Weighted average common shares outstanding		48,158				47,567				47,239				46,734				46,639
Dilutive potential common shares		4,049				4,156				4,233				4,243				4,241
Average common shares and dilutive common shares		52,207				51,723				51,472				50,977				50,880

WINTRUST FINANCIAL CORPORATION - SUPPLEMENTAL FINANCIAL INFORMATION
Period End Loan Balances - 5 Quarter Trends
		September 30,				June 30,				March 31,				December 31,				September 30,
(Dollars in thousands)		2015				2015				2015				2014				2014
Balance:
Commercial		$	4,400,185			$	4,330,344			$	4,211,932			$	3,924,394			$	3,689,671
Commercial real estate		5,307,566				4,850,590				4,710,486				4,505,753				4,510,375
Home equity		797,465				712,350				709,283				716,293				720,058
Residential real-estate		571,743				503,015				495,925				483,542				470,319
Premium finance receivables - commercial		2,407,075				2,460,408				2,319,623				2,350,833				2,377,892
Premium finance receivables - life insurance		2,700,275				2,537,475				2,375,654				2,277,571				2,134,405
Consumer and other (1)		131,902				119,468				130,156				151,012				149,339
Total loans, net of unearned income, excluding covered loans		$	16,316,211			$	15,513,650			$	14,953,059			$	14,409,398			$	14,052,059
Covered loans		168,609				193,410				209,694				226,709				254,605
Total loans, net of unearned income		$	16,484,820			$	15,707,060			$	15,162,753			$	14,636,107			$	14,306,664
Mix:
Commercial		27		%		27		%		28		%		26		%		26		%
Commercial real estate		32				31				31				31				31
Home equity		5				5				5				5				5
Residential real-estate		3				3				3				3				3
Premium finance receivables - commercial		15				16				15				16				17
Premium finance receivables - life insurance		16				16				16				16				15
Consumer and other (1)		1				1				1				1				1
Total loans, net of unearned income, excluding covered loans		99		%		99		%		99		%		98		%		98		%
Covered loans		1				1				1				2				2
Total loans, net of unearned income		100		%		100		%		100		%		100		%		100		%

(1) Includes autos, boats, snowmobiles and other indirect consumer loans as well as short-term accounts receivable financing.

WINTRUST FINANCIAL CORPORATION - SUPPLEMENTAL FINANCIAL INFORMATION
Period End Deposits Balances - 5 Quarter Trends
		September 30,				June 30,				March 31,				December 31,				September 30,
(Dollars in thousands)		2015				2015				2015				2014				2014
Balance:
Non-interest bearing		$	4,705,994			$	3,910,310			$	3,779,609			$	3,518,685			$	3,253,477
NOW and interest bearing demand deposits		2,231,258				2,240,832				2,262,928				2,236,089				2,086,099
Wealth management deposits (1)		1,469,920				1,591,251				1,528,963				1,226,916				1,212,317
Money market		4,001,518				3,898,495				3,791,762				3,651,467				3,744,682
Savings		1,684,007				1,504,654				1,563,752				1,508,877				1,465,250
Time certificates of deposit		4,135,772				3,936,876				4,011,755				4,139,810				4,303,421
Total deposits		$	18,228,469			$	17,082,418			$	16,938,769			$	16,281,844			$	16,065,246
Mix:
Non-interest bearing		26		%		23		%		22		%		22		%		20		%
NOW and interest bearing demand deposits		12				13				13				14				13
Wealth management deposits (1)		8				9				9				8				8
Money market		22				23				23				22				23
Savings		9				9				9				9				9
Time certificates of deposit		23				23				24				25				27
Total deposits		100		%		100		%		100		%		100		%		100		%

(1) Represents deposit balances of the Company’s subsidiary banks from brokerage customers of Wayne Hummer Investments, trust and asset management customers of The Chicago Trust Company and brokerage customers from unaffiliated companies which have been placed into deposit accounts of the Banks.

WINTRUST FINANCIAL CORPORATION - SUPPLEMENTAL FINANCIAL INFORMATION
Net Interest Margin (Including Call Option Income) - 5 Quarter Trends
		Three Months Ended
		September 30,				June 30,				March 31,				December 31,				September 30,
(Dollars in thousands)		2015				2015				2015				2014				2014
Net interest income		$	166,737			$	158,034			$	152,952			$	154,599			$	152,498
Call option income		2,810				4,565				4,360				2,966				2,107
Net interest income including call option income		$	169,547			$	162,599			$	157,312			$	157,565			$	154,605
Yield on earning assets		3.73		%		3.81		%		3.83		%		3.89		%		3.90		%
Rate on interest-bearing liabilities		0.54				0.52				0.54				0.55				0.56
Rate spread		3.19		%		3.29		%		3.29		%		3.34		%		3.34		%
Net free funds contribution		0.14				0.12				0.13				0.12				0.12
Net interest margin		3.33				3.41				3.42				3.46				3.46
Call option income		0.06				0.10				0.10				0.07				0.05
Net interest margin including call option income		3.39		%		3.51		%		3.52		%		3.53		%		3.51		%

WINTRUST FINANCIAL CORPORATION - SUPPLEMENTAL FINANCIAL INFORMATION
Net Interest Margin (Including Call Option Income - YTD Trends)
		Nine Months Ended, September 30,				Years Ended December 31,
(Dollars in thousands)		2015				2014				2013				2012				2011
Net interest income		$	477,723			$	601,744			$	552,887			$	521,463			$	463,071
Call option income		11,735				7,859				4,773				10,476				13,570
Net interest income including call option income		$	489,458			$	609,603			$	557,660			$	531,939			$	476,641
Yield on earning assets		3.79		%		3.96		%		4.01		%		4.21		%		4.49		%
Rate on interest-bearing liabilities		0.53				0.55				0.62				0.86				1.23
Rate spread		3.26		%		3.41		%		3.39		%		3.35		%		3.26		%
Net free funds contribution		0.13				0.12				0.11				0.14				0.16
Net interest margin		3.39				3.53				3.50				3.49				3.42
Call option income		0.08				0.05				0.03				0.07				0.10
Net interest margin including call option income		3.47		%		3.58		%		3.53		%		3.56		%		3.52		%

WINTRUST FINANCIAL CORPORATION - SUPPLEMENTAL FINANCIAL INFORMATION
Quarterly Average Balances - 5 Quarter Trends
		Three Months Ended
		September 30,				June 30,				March 31,				December 31,				September 30,
(In thousands)		2015				2015				2015				2014				2014
Liquidity management assets		$	3,140,782			$	2,709,176			$	2,868,906			$	2,972,220			$	2,814,720
Other earning assets		30,990				32,115				27,717				29,699				28,702
Loans, net of unearned income		16,509,001				15,632,875				15,031,917				14,469,745				14,359,467
Covered loans		174,768				202,663				214,211				244,139				262,310
Total earning assets		$	19,855,541			$	18,576,829			$	18,142,751			$	17,715,803			$	17,465,199
Allowance for loan and covered loan losses		(106,091		)		(101,211		)		(96,918		)		(97,506		)		(96,463		)
Cash and due from banks		251,289				236,242				249,687				243,080				237,402
Other assets		1,687,711				1,545,136				1,530,720				1,505,293				1,521,208
Total assets		$	21,688,450			$	20,256,996			$	19,826,240			$	19,366,670			$	19,127,346
Interest-bearing deposits		$	13,489,651			$	13,115,453			$	12,863,507			$	12,771,359			$	12,695,780
Federal Home Loan Bank advances		402,646				347,656				357,532				335,198				380,083
Other borrowings		272,782				193,660				194,994				84,795				54,653
Subordinated notes		140,000				140,000				140,000				140,000				140,000
Junior subordinated debentures		264,974				249,493				249,493				249,493				249,493
Total interest-bearing liabilities		$	14,570,053			$	14,046,262			$	13,805,526			$	13,580,845			$	13,520,009
Non-interest bearing deposits		4,473,632				3,725,728				3,584,452				3,398,774				3,233,937
Other liabilities		334,254				328,878				321,906				329,196				352,497
Equity		2,310,511				2,156,128				2,114,356				2,057,855				2,020,903
Total liabilities and shareholders’ equity		$	21,688,450			$	20,256,996			$	19,826,240			$	19,366,670			$	19,127,346

WINTRUST FINANCIAL CORPORATION - SUPPLEMENTAL FINANCIAL INFORMATION
Net Interest Margin - 5 Quarter Trends
		Three Months Ended
		September 30, 2015			June 30, 2015			March 31, 2015			December 31, 2014			September 30, 2014
Yield earned on:
Liquidity management assets		2.29	%		2.36	%		2.29	%		2.08	%		2.03	%
Other earning assets		3.00			3.54			2.94			3.40			3.21
Loans, net of unearned income		3.98			4.03			4.08			4.21			4.19
Covered loans		5.91			6.30			6.98			6.80			8.03
Total earning assets		3.73	%		3.81	%		3.83	%		3.89	%		3.90	%
Rate paid on:
Interest-bearing deposits		0.37	%		0.37	%		0.37	%		0.39	%		0.38	%
Federal Home Loan Bank advances		2.42			2.09			2.45			3.00			2.76
Other borrowings		1.52			1.63			1.64			1.47			1.45
Subordinated notes		5.08			5.07			5.07			5.07			5.07
Junior subordinated debentures		3.14			3.13			3.10			3.04			3.28
Total interest-bearing liabilities		0.54	%		0.52	%		0.54	%		0.55	%		0.56	%
Interest rate spread		3.19	%		3.29	%		3.29	%		3.34	%		3.34	%
Net free funds/contribution		0.14			0.12			0.13			0.12			0.12
Net interest income/Net interest margin		3.33	%		3.41	%		3.42	%		3.46	%		3.46	%

WINTRUST FINANCIAL CORPORATION - SUPPLEMENTAL FINANCIAL INFORMATION
Non-Interest Income - 5 Quarter Trends
		Three Months Ended
		September 30,				June 30,				March 31,				December 31,				September 30,
(In thousands)		2015				2015				2015				2014				2014
Brokerage		$	6,579			$	6,750			$	6,852			$	7,892			$	7,185
Trust and asset management		11,664				11,726				11,248				10,757				10,474
Total wealth management		18,243				18,476				18,100				18,649				17,659
Mortgage banking		27,887				36,007				27,800				24,694				26,691
Service charges on deposit accounts		7,403				6,474				6,297				6,189				6,084
(Losses) gains on available-for-sale securities, net		(98		)		(24		)		524				18				(153		)
Fees from covered call options		2,810				4,565				4,360				2,966				2,107
Trading (losses) gains, net		(135		)		160				(477		)		(507		)		293
Other:
Interest rate swap fees		2,606				2,347				2,191				1,119				1,207
BOLI		212				2,180				766				661				652
Administrative services		1,072				1,053				1,026				1,107				990
Miscellaneous		4,953				5,775				3,954				2,761				2,422
Total other income		8,843				11,355				7,937				5,648				5,271
Total Non-Interest Income		$	64,953			$	77,013			$	64,541			$	57,657			$	57,952

WINTRUST FINANCIAL CORPORATION - SUPPLEMENTAL FINANCIAL INFORMATION
Non-Interest Expense - 5 Quarter Trends
		Three Months Ended
		September 30,				June 30,				March 31,				December 31,				September 30,
(In thousands)		2015				2015				2015				2014				2014
Salaries and employee benefits:
Salaries		$	53,028			$	46,617			$	46,848			$	45,255			$	45,471
Commissions and incentive compensation		30,035				33,387				25,494				28,369				27,885
Benefits		14,686				14,417				17,788				14,009				12,620
Total salaries and employee benefits		97,749				94,421				90,130				87,633				85,976
Equipment		8,887				7,914				7,836				7,555				7,570
Occupancy, net		12,066				11,401				12,351				11,600				10,446
Data processing		8,127				6,081				5,448				5,313				4,765
Advertising and marketing		6,237				6,406				3,907				3,669				3,528
Professional fees		4,100				5,074				4,664				4,039				4,035
Amortization of other intangible assets		1,350				934				1,013				1,171				1,202
FDIC insurance		3,035				3,047				2,987				2,810				3,211
OREO expense, net		(367		)		841				1,411				2,320				581
Other:
Commissions - 3rd party brokers		1,364				1,403				1,386				1,470				1,621
Postage		1,927				1,578				1,633				1,724				1,427
Miscellaneous		15,499				15,197				14,552				14,137				14,138
Total other expense		18,790				18,178				17,571				17,331				17,186
Total Non-Interest Expense		$	159,974			$	154,297			$	147,318			$	143,441			$	138,500

WINTRUST FINANCIAL CORPORATION - SUPPLEMENTAL FINANCIAL INFORMATION
Allowance for Credit Losses, excluding covered loans - 5 Quarter Trends
		Three Months Ended
		September 30,				June 30,				March 31,				December 31,				September 30,
(Dollars in thousands)		2015				2015				2015				2014				2014
Allowance for loan losses at beginning of period		$	100,204			$	94,446			$	91,705			$	91,019			$	92,253
Provision for credit losses		8,665				9,701				6,185				6,744				6,028
Other adjustments		(153		)		(93		)		(248		)		(236		)		(335		)
Reclassification (to) from allowance for unfunded lending-related commitments		(42		)		4				(113		)		46				62
Charge-offs:
Commercial		964				1,243				677				289				832
Commercial real estate		1,948				856				1,005				4,434				4,510
Home equity		1,116				1,847				584				150				748
Residential real estate		1,138				923				631				630				205
Premium finance receivables - commercial		1,595				1,526				1,263				1,463				1,557
Premium finance receivables - life insurance		—				—				—				4				—
Consumer and other		116				115				111				156				250
Total charge-offs		6,877				6,510				4,271				7,126				8,102
Recoveries:
Commercial		462				285				370				315				296
Commercial real estate		213				1,824				312				572				275
Home equity		42				39				48				57				99
Residential real estate		136				16				76				19				111
Premium finance receivables - commercial		278				458				329				219				289
Premium finance receivables - life insurance		16				—				—				6				1
Consumer and other		52				34				53				70				42
Total recoveries		1,199				2,656				1,188				1,258				1,113
Net charge-offs		(5,678		)		(3,854		)		(3,083		)		(5,868		)		(6,989		)
Allowance for loan losses at period end		$	102,996			$	100,204			$	94,446			$	91,705			$	91,019
Allowance for unfunded lending-related commitments at period end		926				884				888				775				822
Allowance for credit losses at period end		$	103,922			$	101,088			$	95,334			$	92,480			$	91,841
Annualized net charge-offs by category as a percentage of its own respective category’s average:
Commercial		0.05		%		0.09		%		0.03		%		—		%		0.06		%
Commercial real estate		0.13				(0.08		)		0.06				0.34				0.38
Home equity		0.55				1.01				0.30				0.05				0.36
Residential real estate		0.42				0.39				0.28				0.30				0.05
Premium finance receivables - commercial		0.21				0.18				0.16				0.21				0.20
Premium finance receivables - life insurance		—				—				—				—				—
Consumer and other		0.17				0.23				0.13				0.19				0.49
Total loans, net of unearned income, excluding covered loans		0.14		%		0.10		%		0.08		%		0.16		%		0.19		%
Net charge-offs as a percentage of the provision for credit losses		65.53		%		39.73		%		49.87		%		86.98		%		115.95		%
Loans at period-end		$	16,316,211			$	15,513,650			$	14,953,059			$	14,409,398			$	14,052,059
Allowance for loan losses as a percentage of loans at period end		0.63		%		0.65		%		0.63		%		0.64		%		0.65		%
Allowance for credit losses as a percentage of loans at period end		0.64		%		0.65		%		0.64		%		0.64		%		0.65		%

WINTRUST FINANCIAL CORPORATION - SUPPLEMENTAL FINANCIAL INFORMATION
Non-Performing Assets, excluding covered assets - 5 Quarter Trends
	September 30,				June 30,				March 31,				December 31,				September 30,
(Dollars in thousands)	2015				2015				2015				2014				2014
Loans past due greater than 90 days and still accruing(1):
Commercial	$	—			$	—			$	—			$	474			$	—
Commercial real-estate	—				701				—				—				—
Home equity	—				—				—				—				—
Residential real-estate	—				—				—				—				—
Premium finance receivables - commercial	8,231				9,053				8,062				7,665				7,115
Premium finance receivables - life insurance	—				351				—				—				—
Consumer and other	140				110				91				119				175
Total loans past due greater than 90 days and still accruing	8,371				10,215				8,153				8,258				7,290
Non-accrual loans(2):
Commercial	12,018				5,394				5,586				9,157				10,455
Commercial real-estate	28,617				23,183				29,982				26,605				27,363
Home equity	8,365				5,695				7,665				6,174				5,696
Residential real-estate	14,557				16,631				14,248				15,502				15,730
Premium finance receivables - commercial	13,751				15,156				15,902				12,705				14,110
Premium finance receivables - life insurance	—				—				—				—				—
Consumer and other	297				280				236				277				426
Total non-accrual loans	77,605				66,339				73,619				70,420				73,780
Total non-performing loans:
Commercial	12,018				5,394				5,586				9,631				10,455
Commercial real-estate	28,617				23,884				29,982				26,605				27,363
Home equity	8,365				5,695				7,665				6,174				5,696
Residential real-estate	14,557				16,631				14,248				15,502				15,730
Premium finance receivables - commercial	21,982				24,209				23,964				20,370				21,225
Premium finance receivables - life insurance	—				351				—				—				—
Consumer and other	437				390				327				395				601
Total non-performing loans	$	85,976			$	76,554			$	81,772			$	78,677			$	81,070
Other real estate owned	29,053				33,044				33,131				36,419				41,506
Other real estate owned - from acquisitions	22,827				9,036				9,126				9,223				8,871
Other repossessed assets	193				231				259				303				292
Total non-performing assets	$	138,049			$	118,865			$	124,288			$	124,622			$	131,739
TDRs performing under the contractual terms of the loan agreement	49,173				52,174				54,687				69,697				69,868
Total non-performing loans by category as a percent of its own respective category’s period-end balance:
Commercial	0.27		%		0.12		%		0.13		%		0.25		%		0.28		%
Commercial real-estate	0.54				0.49				0.64				0.59				0.61
Home equity	1.05				0.80				1.08				0.86				0.79
Residential real-estate	2.55				3.31				2.87				3.21				3.34
Premium finance receivables - commercial	0.91				0.98				1.03				0.87				0.89
Premium finance receivables - life insurance	—				0.01				—				—				—
Consumer and other	0.33				0.33				0.25				0.26				0.40
Total loans, net of unearned income	0.53		%		0.49		%		0.55		%		0.55		%		0.58		%
Total non-performing assets as a percentage of total assets	0.63		%		0.57		%		0.61		%		0.62		%		0.69		%
Allowance for loan losses as a percentage of total non-performing loans	119.79		%		130.89		%		115.50		%		116.56		%		112.27		%

(1) As of the dates shown, no TDRs were past due greater than 90 days and still accruing interest.
(2) Non-accrual loans included TDRs totaling $10.1 million, $10.6 million, $12.5 million, $12.6 million and $13.5 million as of September 30, 2015, June 30, 2015, March 31, 2015, December 31, 2014 and September 30, 2014, respectively.