Wintrust Financial Corporation Reports Record First Quarter

ROSEMONT, Ill., April 19, 2021 (GLOBE NEWSWIRE) -- Wintrust Financial Corporation (“Wintrust”, “the Company”, "we" or "our") (Nasdaq: WTFC) announced record net income of $153.1 million or $2.54 per diluted common share for the first quarter of 2021, an increase in diluted earnings per common share of 56% compared to the fourth quarter of 2020 and an increase of 144% compared to the first quarter of 2020.

Highlights of the First Quarter of 2021:
Comparative information to the fourth quarter of 2020

Total assets increased by $601 million.
Total loans, excluding Paycheck Protection Program ("PPP") loans, increased by $515 million.
- Originated $1.3 billion of PPP loans in the first quarter of 2021 which generated fees of $51.2 million, net of $1.8 million of deferred costs, to be recognized over the estimated life of the loans.
- PPP loans originated in 2020 declined by $667 million in the first quarter of 2021 primarily as a result of processing forgiveness payments. As of April 16, 2021, approximately 42% of PPP loan balances originated in 2020 have been forgiven, approximately 40% of balances are in the forgiveness review or submission process, and approximately 18% of balances have yet to apply for forgiveness.
Total deposits increased by $780 million.
Total investment securities increased by $1.0 billion as the Company deployed a portion of its excess liquidity.
Net interest income increased by $2.5 million primarily due to earning asset growth and increased PPP loan fee accretion, despite two less days in the first quarter of 2021. Each day has an approximately $3 million impact on net interest income.
- The Company recognized $19.2 million of PPP loan fee accretion in the first quarter of 2021 as compared to $16.8 million in the fourth quarter of 2020. As of March 31, 2021, the Company had approximately $64.6 million of net PPP loan fees that have yet to be recognized in income.
The loans to deposits ratio ended the first quarter of 2021 at 87.6% as compared to 86.5% as of December 31, 2020. Excluding PPP loans, the loans to deposits ratio ended the first quarter of 2021 at 78.9%.
Mortgage banking revenue increased by $26.7 million to $113.5 million for the first quarter of 2021 as compared to $86.8 million in the fourth quarter of 2020.
- Recorded an increase in the value of mortgage servicing rights related to changes in fair value model assumptions of $18.0 million in the first quarter of 2021 as compared to a decrease of $5.2 million in the fourth quarter of 2020.
Recorded a negative provision for credit losses of $45.3 million in the first quarter of 2021 as compared to $1.2 million of expense in the fourth quarter of 2020.
Recorded net charge-offs of $13.3 million in the first quarter of 2021 as compared to net charge-offs of $10.3 million in the fourth quarter of 2020. Net charge-offs as a percentage of average total loans totaled 17 basis points in the first quarter of 2021 on an annualized basis compared to 13 basis points on an annualized basis in the fourth quarter of 2020.
The allowance for credit losses on our core loan portfolio is approximately 1.62% of the outstanding balance as of March 31, 2021, down from 2.00% as of December 31, 2020. See Table 11 for more information.
Non-performing loans declined significantly and totaled $99.1 million, or 0.30% of total loans, as of March 31, 2021 as compared to $127.5 million, or 0.40% of total loans, as of December 31, 2020.
The outstanding balance of COVID-19 related modified loans totaled approximately $254 million or 0.8% of total loans, excluding PPP loans, as of March 31, 2021 as compared to $345 million or 1.2% as of December 31, 2020.
Tangible book value per common share (non-GAAP) increased to $55.42 as compared to $53.23 as of December 31, 2020.

Other items of note from the first quarter of 2021

The following items had a $5.8 million unfavorable pre-tax income impact on the first quarter of 2021:
- Recognized $3.8 million of expense related to impairment of certain capitalized software costs based on an evaluation of remaining useful life.
- Recorded an impairment charge of $1.4 million in occupancy expense as part of an ongoing effort to optimize our branch footprint.
- Recorded severance expense of $626,000.

Edward J. Wehmer, Founder and Chief Executive Officer, commented, "Wintrust reported record net income of $153.1 million for the first quarter of 2021, up from $101.2 million in the fourth quarter of 2020. Pre-tax income, excluding provision for credit losses (non-GAAP) increased by 19% to $161.5 million for the first quarter of 2021 as compared to $135.9 million in the fourth quarter of 2020. The first quarter of 2021 was characterized by strong loan growth, increased net interest income, record mortgage banking revenue, a release of reserves as our credit quality and macroeconomic forecasts improved and a continued focus to increase franchise value in our market area."

Mr. Wehmer continued, "The Company experienced strong loan growth in the first quarter of 2021, including growth in its commercial, commercial real estate, residential real estate loans for investment and life insurance premium finance receivable portfolios. The loan growth occurred in the latter part of the quarter as total period end loans, excluding PPP loans, were $523 million higher than average total loans, excluding PPP loans, in the first quarter of 2021. Our loan pipelines remain strong and we expect to leverage our various core and niche portfolios to continue to grow loans. Total deposits increased by $780 million as compared to the fourth quarter of 2020 primarily due to an increase in non-interest bearing deposits related to PPP loan origination. We continue to emphasize growing our franchise, including gathering low cost deposits, which we believe will drive value in the long term. Our loans to deposits ratio ended the quarter at 87.6% and we believe that we have sufficient liquidity to meet customer loan demand."

Mr. Wehmer commented, "Net interest income increased in the first quarter of 2021 primarily due to earning asset growth and increased PPP loan fee accretion. Net interest margin was unchanged as the rate on interest-bearing liabilities declined seven basis points in the first quarter of 2021 as compared to the fourth quarter of 2020 effectively offsetting a six basis point decline in the yield on total earning assets. PPP loan fee accretion increased as the Company recognized $19.2 million of PPP loan fee accretion in the first quarter of 2021 as compared to $16.8 million in the fourth quarter of 2020. Additionally, we deployed a portion of excess liquidity during the first quarter of 2021 to purchase investment securities increasing our period end total securities by $1.0 billion as compared to December 31, 2020. The majority of the security purchases were in the latter part of the quarter after long term interest rates had increased. As a result, period end investment securities were $743 million higher than average investment securities in the first quarter of 2021 which is expected to favorably impact net interest margin in future quarters. We continue to maintain excess liquidity and believe that deploying such liquidity could potentially increase our net interest margin."

Mr. Wehmer noted, “Our mortgage banking business reported record mortgage banking revenue of $113.5 million in the first quarter of 2021. Loan volumes originated for sale in the first quarter of 2021 were $2.2 billion, down slightly from $2.4 billion in the fourth quarter of 2020. The Company allocated a greater portion of its mortgage originations for investment to benefit future quarters. Additionally, the Company recorded an $18.0 million increase in the value of mortgage servicing rights related to changes in fair value model assumptions. The strong quarter of mortgage performance contributed to reporting a 0.90% net overhead ratio for the first quarter of 2021. We believe the second quarter of 2021 will provide another strong quarter for mortgage banking production as an influx in seasonal purchase demand is expected to help offset an expected decline in refinance activity."

Commenting on credit quality, Mr. Wehmer stated, "The Company recorded a negative provision for credit losses of $45.3 million related to both improving credit quality and macroeconomic forecasts. The level of non-performing loans decreased by $28.5 million primarily due to non-performing loan pay-offs. Additionally, net charge-offs remained relatively low totaling $13.3 million in the first quarter of 2021 as compared to $10.3 million in the fourth quarter of 2020. The allowance for credit losses on our core loan portfolio as of March 31, 2021 is approximately 1.62% of the outstanding balance. We believe that the Company’s reserves remain appropriate and we remain diligent in our review of credit."

Mr. Wehmer continued, "We remain committed to supporting our community, including the well-being and safety of our customers and employees. We have actively participated in the latest rounds of PPP approved in 2021 and as of April 16, 2021 have processed over 7,900 applications aggregating in excess of $1.3 billion of loans. We are carefully monitoring the COVID-19 pandemic including its potential impact on the economy, our customers and our business. We remain focused on navigating the current environment by actively monitoring and managing our credit portfolio."

Mr. Wehmer concluded, "Our first quarter of 2021 results continued to demonstrate the multi-faceted nature of our business model which we believe uniquely positions us to be successful. While Wintrust and the banking industry as a whole have experienced significant net interest margin compression, we have been able to compensate for that with outstanding mortgage banking results. Additionally, we leverage a differentiated, diversified loan portfolio to outperform peers with respect to loan growth. We are focused on taking advantage of market opportunities to prudently deploy excess liquidity into earning assets including core and niche loans and investment securities while maintaining an interest rate sensitive asset portfolio. We remain diligent in our evaluation of acquisition targets and will be prudent in our decision-making, always seeking to minimize dilution. Finally, we evaluate our operating expense base on an ongoing basis to enhance future profitability."

The graphs below illustrate certain financial highlights of the first quarter of 2021 as well as historical financial performance. See "Supplemental Non-GAAP Financial Measures/Ratios" at Table 17 for additional information with respect to non-GAAP financial measures/ratios, including the reconciliations to the corresponding GAAP financial measures/ratios.

Graphs available at the following link: http://ml.globenewswire.com/Resource/Download/4e11acd7-e400-475a-8133-4d0d52f51413

SUMMARY OF RESULTS:

BALANCE SHEET

Total asset growth of $601 million in the first quarter of 2021 was primarily comprised of a $1.1 billion increase in loans and a $1.0 billion increase in investment securities, partially offset by a $1.5 billion decrease in interest-bearing deposits with banks. Total investment securities increased by $1.0 billion as the Company deployed a portion of its excess liquidity as market returns improved due to the change in long-term interest rates. Total loans, excluding PPP loans, increased by $515 million primarily due to growth in the commercial, commercial real estate, residential real estate loans for investment and life insurance premium finance receivable portfolios. The Company believes that the $3.3 billion of interest-bearing deposits with banks held as of March 31, 2021 provides sufficient liquidity to operate its business plan.

Total liabilities increased $465 million in the first quarter of 2021 resulting primarily from a $780 million increase in total deposits, partially offset by a $200 million decrease in trade date securities payable. The increase in deposits was primarily due to a $549 million increase in non-interest-bearing deposits primarily related to PPP loans originated in 2021. The Company's loans to deposits ratio ended the quarter at 87.6%. Management believes in substantially funding the Company's balance sheet with core deposits and utilizes brokered or wholesale funding sources as appropriate to manage its liquidity position as well as for interest rate risk management purposes.

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

NET INTEREST INCOME

For the first quarter of 2021, net interest income totaled $261.9 million, an increase of $2.5 million as compared to the fourth quarter of 2020 and an increase of $452,000 as compared to the first quarter of 2020. The $2.5 million increase in net interest income in the first quarter of 2021 compared to the fourth quarter of 2020 was primarily due to earning asset growth and increased PPP loan fee accretion, despite two less days in the first quarter of 2021.

Net interest margin was 2.53% (2.54% on a fully taxable-equivalent basis, non-GAAP) during the first quarter of 2021 unchanged from 2.53% (2.54% on a fully taxable-equivalent basis, non-GAAP) during the fourth quarter of 2020 and down from 3.12% (3.14% on a fully taxable-equivalent basis, non-GAAP) during the first quarter of 2020. The net interest margin was unchanged from the prior quarter due to the six basis point decline in the yield on earning assets and one basis point decrease in the net free funds contribution being offset by a seven basis point decrease in the rate paid on interest-bearing liabilities. The six basis point decline in the yield on earning assets in the first quarter of 2021 as compared to the fourth quarter of 2020 was primarily due to an eight basis point decline in yield earned on loans partially offset by a three basis point increase in yield on liquidity management assets. The decrease in the rate paid on interest-bearing liabilities in the first quarter of 2021 as compared to the prior quarter is primarily due to a six basis point decrease in the rate paid on interest-bearing deposits primarily due to lower repricing of time deposits.

For more information regarding net interest income, see Tables 4 through 7 in this report.

ASSET QUALITY

The allowance for credit losses totaled $321.3 million as of March 31, 2021, a decrease of $58.7 million as compared to $380.0 million as of December 31, 2020. The allowance for credit losses decreased primarily due to improvements in the macroeconomic forecast in addition to improvement in portfolio characteristics throughout the quarter. Notably, there was a decrease in the allowance for credit losses in the Commercial Real Estate portfolio primarily driven by improvement in the Commercial Real Estate Price Index and Baa Corporate Credit Spreads forecasts. Other key drivers of allowance for credit losses changes include, but are not limited to, decreases in COVID-19 related loan modifications and loan risk rating migration.

A negative provision for credit losses totaling $45.3 million was recorded for the first quarter of 2021 compared to $1.2 million of expense for the fourth quarter of 2020 and $53.0 million of expense for the first quarter of 2020. For more information regarding the provision for credit losses, see Table 10 in this report.

Management believes the allowance for credit losses is appropriate to account for expected credit losses. The Current Expected Credit Losses ("CECL") standard requires the Company to estimate expected credit losses over the life of the Company’s financial assets at a certain point in time. There can be no assurances, however, that future losses will not significantly exceed the amounts provided for, thereby affecting future results of operations. A summary of the allowance for credit losses calculated for the loan components in each portfolio as of March 31, 2021 and December 31, 2020 is shown on Table 11 of this report.

Net charge-offs totaled $13.3 million in the first quarter of 2021, a $3.0 million increase from $10.3 million in the fourth quarter of 2020 and a $8.0 million increase from $5.3 million in the first quarter of 2020. Net charge-offs as a percentage of average total loans totaled 17 basis points in the first quarter of 2021 on an annualized basis compared to 13 basis points on an annualized basis in the fourth quarter of 2020 and eight basis points on an annualized basis in the first quarter of 2020. For more information regarding net charge-offs, see Table 9 in this report.

As of March 31, 2021, $28.0 million of all loans, or 0.1%, were 60 to 89 days past due and $151.7 million, or 0.5%, were 30 to 59 days (or one payment) past due. As of December 31, 2020, $41.6 million of all loans, or 0.1%, were 60 to 89 days past due and $139.1 million, or 0.4%, were 30 to 59 days (or one payment) past due. Many of the commercial and commercial real-estate loans shown as 60 to 89 days and 30 to 59 days past due are included on the Company’s internal problem loan reporting system. Loans on this system are closely monitored by management on a monthly basis.

The Company’s home equity and residential real estate loan portfolios continue to exhibit low delinquency rates as of March 31, 2021. Home equity loans at March 31, 2021 that are current with regard to the contractual terms of the loan agreement represent 98.3% of the total home equity portfolio. Residential real estate loans at March 31, 2021 that are current with regards to the contractual terms of the loan agreements comprised 97.4% of total residential real estate loans outstanding. For more information regarding past due loans, see Table 12 in this report.

The outstanding balance of COVID-19 related modified loans totaled approximately $254 million or 0.8% of total loans, excluding PPP loans as of March 31, 2021 as compared to $345 million or 1.2% as of December 31, 2020. The most significant proportion of outstanding modifications changed terms to interest-only payments.

The ratio of non-performing assets to total assets was 0.25% as of March 31, 2021, compared to 0.32% at December 31, 2020, and 0.49% at March 31, 2020. Non-performing assets totaled $114.9 million at March 31, 2021, compared to $144.1 million at December 31, 2020 and $190.4 million at March 31, 2020. Non-performing loans totaled $99.1 million, or 0.30% of total loans, at March 31, 2021 compared to $127.5 million, or 0.40% of total loans, at December 31, 2020 and $179.4 million, or 0.65% of total loans, at March 31, 2020. The decrease in non-performing loans as of March 31, 2021 as compared to December 31, 2020 is primarily due to payments throughout the quarter. A significant portion of these payments were attributed to refinance activity with some payments resulting from the sale of underlying collateral. Reductions in non-performing loans were also accomplished through note sales and movement to other real estate owned ("OREO"). OREO totaled $15.8 million at March 31, 2021, a decrease of $745,000 compared to $16.6 million at December 31, 2020 and an increase of $4.8 million compared to $11.0 million at March 31, 2020. Management is pursuing the resolution of all non-performing assets. At this time, management believes OREO is appropriately valued at the lower of carrying value or fair value less estimated costs to sell. For more information regarding non-performing assets, see Table 13 in this report.

NON-INTEREST INCOME

Wealth management revenue increased by $2.5 million during the first quarter of 2021 as compared to the fourth quarter of 2020 primarily due to increased trust and asset management fees and brokerage commissions. Wealth management revenue is comprised of the trust and asset management revenue of The Chicago Trust Company and Great Lakes Advisors, the brokerage commissions, managed money fees and insurance product commissions at Wintrust Investments and fees from tax-deferred like-kind exchange services provided by the Chicago Deferred Exchange Company.

Mortgage banking revenue increased by $26.7 million in the first quarter of 2021 as compared to the fourth quarter of 2020, primarily due to an $18.0 million favorable mortgage servicing rights portfolio fair value adjustment as compared to a $5.2 million decrease recognized in the prior quarter related to changes in fair value model assumptions. Loans originated for sale were $2.2 billion in the first quarter of 2021, a decrease of $129.3 million as compared to the fourth quarter of 2020. The percentage of origination volume from refinancing activities was 73% in the first quarter of 2021 as compared to 65% in the fourth quarter of 2020. Mortgage banking revenue includes revenue from activities related to originating, selling and servicing residential real estate loans for the secondary market.

During the first quarter of 2021, the fair value of the mortgage servicing rights portfolio increased primarily due to the capitalization of $24.6 million of servicing rights and a fair value adjustment increase of $18.0 million partially offset by a reduction in value of $10.2 million due to payoffs and paydowns of the existing portfolio. No economic hedges were outstanding relative to the mortgage servicing rights portfolio during the fourth quarter of 2020 or first quarter of 2021.

Operating lease income increased by $2.3 million in the first quarter of 2021 as compared to the fourth quarter of 2020. The increase is primarily due to a $1.5 million gain recognized on sale of lease assets in the first quarter of 2021.

Other non-interest income decreased by $4.0 million in the first quarter of 2021 as compared to the fourth quarter of 2020 primarily due to decreased interest rate swap fees and bank owned life insurance ("BOLI") revenue.

For more information regarding non-interest income, see Tables 14 and 15 in this report.

NON-INTEREST EXPENSE

Salaries and employee benefits expense increased by $9.7 million in the first quarter of 2021 as compared to the fourth quarter of 2020. The $9.7 million increase is comprised of an increase of $9.0 million in commissions and incentive compensation and an increase of $3.2 million in employee benefits expense, partially offset by a decrease of $2.5 million in salaries expense. The increase in commissions and incentive compensation is primarily due to higher expenses associated with the Company's long term incentive program and higher commissions related to its mortgage and wealth management businesses. The increase in employee benefits is primarily related to higher employee payroll taxes.

Advertising and marketing expense totaled $8.5 million in the first quarter of 2021, a decrease of $1.3 million as compared to the fourth quarter of 2020. The decrease in the first quarter relates primarily to decreased digital advertising campaigns and printing costs. Marketing costs are incurred to promote the Company's brand, commercial banking capabilities and various products, to attract loans and deposits and to announce new branch openings as well as the expansion of the Company's non-bank businesses. The level of marketing expenditures depends on the timing of sponsorship programs utilized which are determined based on the market area, targeted audience, competition and various other factors.

Miscellaneous expense in the first quarter of 2021 decreased by $5.0 million as compared to the fourth quarter of 2020. The first quarter of 2021 included a $937,000 reversal of contingent consideration expense related to the previous acquisition of mortgage operations as compared to $6.6 million of expense in the fourth quarter of 2020. The liability for contingent consideration expense related to the previous acquisition of mortgage operations is based upon forward looking mortgage origination volumes and the estimated profitability of that operation. Should those assumptions change going forward, the liability may need to be increased or decreased. The contractual period covering contingent consideration ends in January 2023 and the final two years of the contract contemplate a lower ratio of contingent consideration relative to financial performance. As a result, the Company does not expect to have material adjustments to the contingent consideration liability in future periods. The Company also recognized $3.8 million of expense related to impairment of certain capitalized software costs based on an evaluation of remaining useful life. Miscellaneous expense also includes ATM expenses, correspondent bank charges, directors fees, telephone, travel and entertainment, corporate insurance, dues and subscriptions, problem loan expenses and lending origination costs that are not deferred.

For more information regarding non-interest expense, see Table 16 in this report.

INCOME TAXES

The Company recorded income tax expense of $53.7 million in the first quarter of 2021 compared to $33.5 million in the fourth quarter of 2020 and $24.3 million in the first quarter of 2020. The effective tax rates were 25.97% in the first quarter of 2021 compared to 24.87% in the fourth quarter of 2020 and 27.87% in the first quarter of 2020.

BUSINESS UNIT SUMMARY

Community Banking

Through its community banking unit, the Company provides banking and financial services primarily to individuals, small to mid-sized businesses, local governmental units and institutional clients residing primarily in the local areas the Company services. In the first quarter of 2021, this unit expanded its loan portfolio and its deposit portfolio. In addition, the segment's net interest margin remained relatively stable in the first quarter of 2021 as compared to the fourth quarter of 2020.

Mortgage banking revenue was $113.5 million for the first quarter of 2021, an increase of $26.7 million as compared to the fourth quarter of 2020 primarily due to an $18.0 million favorable mortgage servicing rights portfolio fair value adjustment as compared to a $5.2 million decrease recognized in the prior quarter related to changes in fair value model assumptions. Service charges on deposit accounts totaled $12.0 million in the first quarter of 2021, an increase of $195,000 as compared to the fourth quarter of 2020 primarily due to higher account analysis fees. The Company's gross commercial and commercial real estate loan pipelines remained strong as of March 31, 2021. Before the impact of scheduled payments and prepayments, gross commercial and commercial real estate loan pipelines were estimated to be approximately $1.3 billion to $1.5 billion at March 31, 2021. When adjusted for the probability of closing, the pipelines were estimated to be approximately $800 million to $900 million at March 31, 2021.

Specialty Finance

Through its specialty finance unit, the Company offers financing of insurance premiums for businesses and individuals, equipment financing through structured loans and lease products to customers in a variety of industries, accounts receivable financing and value-added, out-sourced administrative services and other services. Originations within the insurance premium financing receivables portfolio were $2.8 billion during the first quarter of 2021 and average balances increased by $263.7 million as compared to the fourth quarter of 2020. The increase in average balances was more than offset by margin compression in this portfolio resulting in a $5.0 million decrease in interest income attributed to the lower market rates of interest associated with the insurance premium finance receivables portfolio. The Company's leasing business grew during the first quarter of 2021, with its portfolio of assets, including capital leases, loans and equipment on operating leases, increasing by $106.6 million to $2.2 billion at the end of the first quarter of 2021. Revenues from the Company's out-sourced administrative services business were $1.3 million in the first quarter of 2021, essentially unchanged from the fourth quarter of 2020.

Wealth Management

Through four separate subsidiaries within its wealth management unit, the Company offers a full range of wealth management services, including trust and investment services, tax-deferred like-kind exchange services, asset management, securities brokerage services and 401(k) and retirement plan services. Wealth management revenue totaled $29.3 million in the first quarter of 2021, an increase of $2.5 million compared to the fourth quarter of 2020. Increases in asset management fees were primarily due to favorable equity market performance during the first quarter of 2021. At March 31, 2021, the Company’s wealth management subsidiaries had approximately $32.2 billion of assets under administration, which included $4.2 billion of assets owned by the Company and its subsidiary banks, representing a $2.1 billion increase from the $30.1 billion of assets under administration at December 31, 2020.

ITEMS IMPACTING COMPARATIVE FINANCIAL RESULTS

Paycheck Protection Program

On March 27, 2020, the President of the United States signed the CARES Act, which authorized the Small Business Administration ("SBA") to guarantee loans under the PPP for small businesses who met the necessary eligibility requirements in order to keep their workers on the payroll. The Company began accepting applications on April 3, 2020. From such date through March 31, 2021, the Company secured authorization from the SBA for and funded over 19,400 PPP loans with a carrying balance of approximately $4.8 billion. As of March 31, 2021, the carrying balance of such loans was reduced to approximately $3.3 billion primarily resulting from forgiveness by the SBA.

WINTRUST FINANCIAL CORPORATION
Key Operating Measures

Wintrust’s key operating measures and growth rates for the first quarter of 2021, as compared to the fourth quarter of 2020 (sequential quarter) and first quarter of 2020 (linked quarter), are shown in the table below:

										% or⁽¹⁾ basis point (bp) change from 4th Quarter 2020			% or basis point (bp) change from 1st Quarter 2020
	Three Months Ended
(Dollars in thousands, except per share data)	Mar 31, 2021			Dec 31, 2020			Mar 31, 2020
Net income	$	153,148		$	101,204		$	62,812		51		%	144		%
Pre-tax income, excluding provision for credit losses (non-GAAP) ⁽²⁾	161,512			135,891			140,044			19			15
Net income per common share – diluted	2.54			1.63			1.04			56			144
Net revenue ⁽³⁾	448,401			417,758			374,685			7			20
Net interest income	261,895			259,397			261,443			1			—
Net interest margin	2.53		%	2.53		%	3.12		%	—		bp	(59	)	bps
Net interest margin - fully taxable equivalent (non-GAAP) ⁽²⁾	2.54			2.54			3.14			—			(60	)
Net overhead ratio ⁽⁴⁾	0.90			1.12			1.33			(22	)		(43	)
Return on average assets	1.38			0.92			0.69			46			69
Return on average common equity	15.80			10.30			6.82			550			898
Return on average tangible common equity (non-GAAP) ⁽²⁾	19.49			12.95			8.73			654			1,076
At end of period
Total assets	$	45,682,202		$	45,080,768		$	38,799,847		5		%	18		%
Total loans ⁽⁵⁾	33,171,233			32,079,073			27,807,321			14			19
Total deposits	37,872,652			37,092,651			31,461,660			9			20
Total shareholders’ equity	4,252,511			4,115,995			3,700,393			13			15

(1) Period-end balance sheet percentage changes are annualized.
(2) See "Supplemental Non-GAAP Financial Measures/Ratios" at Table 17 for additional information on this performance measure/ratio.
(3) Net revenue is net interest income plus non-interest income.
(4) The net overhead ratio is calculated by netting total non-interest expense and total non-interest income, annualizing this amount, and dividing by that period's average total assets. A lower ratio indicates a higher degree of efficiency.
(5) Excludes mortgage loans held-for-sale.

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

WINTRUST FINANCIAL CORPORATION
Selected Financial Highlights

	Three Months Ended
(Dollars in thousands, except per share data)	Mar 31, 2021			Dec 31, 2020			Sep 30, 2020			Jun 30, 2020			Mar 31, 2020
Selected Financial Condition Data (at end of period):
Total assets	$	45,682,202		$	45,080,768		$	43,731,718		$	43,540,017		$	38,799,847
Total loans ⁽¹⁾	33,171,233			32,079,073			32,135,555			31,402,903			27,807,321
Total deposits	37,872,652			37,092,651			35,844,422			35,651,874			31,461,660
Junior subordinated debentures	253,566			253,566			253,566			253,566			253,566
Total shareholders’ equity	4,252,511			4,115,995			4,074,089			3,990,218			3,700,393
Selected Statements of Income Data:
Net interest income	$	261,895		$	259,397		$	255,936		$	263,131		$	261,443
Net revenue ⁽²⁾	448,401			417,758			426,529			425,124			374,685
Net income	153,148			101,204			107,315			21,659			62,812
Pre-tax income, excluding provision for credit losses (non-GAAP) ⁽³⁾	161,512			135,891			162,310			165,756			140,044
Net income per common share – Basic	2.57			1.64			1.68			0.34			1.05
Net income per common share – Diluted	2.54			1.63			1.67			0.34			1.04
Selected Financial Ratios and Other Data:
Performance Ratios:
Net interest margin	2.53		%	2.53		%	2.56		%	2.73		%	3.12		%
Net interest margin - fully taxable equivalent (non-GAAP) ⁽³⁾	2.54			2.54			2.57			2.74			3.14
Non-interest income to average assets	1.68			1.44			1.58			1.55			1.24
Non-interest expense to average assets	2.59			2.56			2.45			2.48			2.58
Net overhead ratio ⁽⁴⁾	0.90			1.12			0.87			0.93			1.33
Return on average assets	1.38			0.92			0.99			0.21			0.69
Return on average common equity	15.80			10.30			10.66			2.17			6.82
Return on average tangible common equity (non-GAAP) ⁽³⁾	19.49			12.95			13.43			2.95			8.73
Average total assets	$	44,988,733		$	43,810,005		$	42,962,844		$	42,042,729		$	36,625,490
Average total shareholders’ equity	4,164,890			4,050,286			4,034,902			3,908,846			3,710,169
Average loans to average deposits ratio	87.1		%	87.9		%	89.6		%	87.8		%	90.1		%
Period-end loans to deposits ratio	87.6			86.5			89.7			88.1			88.4
Common Share Data at end of period:
Market price per common share	$	75.80		$	61.09		$	40.05		$	43.62		$	32.86
Book value per common share	67.34			65.24			63.57			62.14			62.13
Tangible book value per common share (non-GAAP) ⁽³⁾	55.42			53.23			51.70			50.23			50.18
Common shares outstanding	57,023,273			56,769,625			57,601,991			57,573,672			57,545,352
Other Data at end of period:
Tier 1 leverage ratio ⁽⁵⁾	8.2		%	8.1		%	8.2		%	8.1		%	8.5		%
Risk-based capital ratios:
Tier 1 capital ratio ⁽⁵⁾	10.1			10.0			10.2			10.1			9.3
Common equity tier 1 capital ratio⁽⁵⁾	9.0			8.8			9.0			8.8			8.9
Total capital ratio ⁽⁵⁾	12.6			12.6			12.9			12.8			11.9
Allowance for credit losses ⁽⁶⁾	$	321,308		$	379,969		$	388,971		$	373,174		$	253,482
Allowance for loan and unfunded lending-related commitment losses to total loans	0.97		%	1.18		%	1.21		%	1.19		%	0.91		%
Number of:
Bank subsidiaries	15			15			15			15			15
Banking offices	182			181			182			186			187

(1) Excludes mortgage loans held-for-sale.
(2) Net revenue is net interest income and non-interest income.
(3) See “Supplemental Non-GAAP Financial Measures/Ratios” at Table 17 for additional information on this performance measure/ratio.
(4) The net overhead ratio is calculated by netting total non-interest expense and total non-interest income, annualizing this amount, and dividing by that period’s total average assets. A lower ratio indicates a higher degree of efficiency.
(5) Capital ratios for current quarter-end are estimated.
(6) The allowance for credit losses includes the allowance for loan losses, the allowance for unfunded lending-related commitments and the allowance for held-to-maturity securities losses.

WINTRUST FINANCIAL CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CONDITION

	(Unaudited)						(Unaudited)			(Unaudited)			(Unaudited)
	Mar 31,			Dec 31,			Sep 30,			Jun 30,			Mar 31,
(In thousands)	2021			2020			2020			2020			2020
Assets
Cash and due from banks	$	426,325		$	322,415		$	308,639		$	344,999		$	349,118
Federal funds sold and securities purchased under resale agreements	52			59			56			58			309
Interest-bearing deposits with banks	3,348,794			4,802,527			3,825,823			4,015,072			1,943,743
Available-for-sale securities, at fair value	2,430,749			3,055,839			2,946,459			3,194,961			3,570,959
Held-to-maturity securities, at amortized cost	2,166,419			579,138			560,267			728,465			865,376
Trading account securities	951			671			1,720			890			2,257
Equity securities with readily determinable fair value	90,338			90,862			54,398			52,460			47,310
Federal Home Loan Bank and Federal Reserve Bank stock	135,881			135,588			135,568			135,571			134,546
Brokerage customer receivables	19,056			17,436			16,818			14,623			16,293
Mortgage loans held-for-sale	1,260,193			1,272,090			959,671			833,163			656,934
Loans, net of unearned income	33,171,233			32,079,073			32,135,555			31,402,903			27,807,321
Allowance for loan losses	(277,709		)	(319,374		)	(325,959		)	(313,510		)	(216,050		)
Net loans	32,893,524			31,759,699			31,809,596			31,089,393			27,591,271
Premises and equipment, net	760,522			768,808			774,288			769,909			764,583
Lease investments, net	238,984			242,434			230,373			237,040			207,147
Accrued interest receivable and other assets	1,230,362			1,351,455			1,424,728			1,437,832			1,460,168
Trade date securities receivable	—			—			—			—			502,207
Goodwill	646,017			645,707			644,644			644,213			643,441
Other intangible assets	34,035			36,040			38,670			41,368			44,185
Total assets	$	45,682,202		$	45,080,768		$	43,731,718		$	43,540,017		$	38,799,847
Liabilities and Shareholders’ Equity
Deposits:
Non-interest-bearing	$	12,297,337		$	11,748,455		$	10,409,747		$	10,204,791		$	7,556,755
Interest-bearing	25,575,315			25,344,196			25,434,675			25,447,083			23,904,905
Total deposits	37,872,652			37,092,651			35,844,422			35,651,874			31,461,660
Federal Home Loan Bank advances	1,228,436			1,228,429			1,228,422			1,228,416			1,174,894
Other borrowings	516,877			518,928			507,395			508,535			487,503
Subordinated notes	436,595			436,506			436,385			436,298			436,179
Junior subordinated debentures	253,566			253,566			253,566			253,566			253,566
Trade date securities payable	995			200,907			—			—			—
Accrued interest payable and other liabilities	1,120,570			1,233,786			1,387,439			1,471,110			1,285,652
Total liabilities	41,429,691			40,964,773			39,657,629			39,549,799			35,099,454
Shareholders’ Equity:
Preferred stock	412,500			412,500			412,500			412,500			125,000
Common stock	58,727			58,473			58,323			58,294			58,266
Surplus	1,663,008			1,649,990			1,647,049			1,643,864			1,652,063
Treasury stock	(100,363		)	(100,363		)	(44,891		)	(44,891		)	(44,891		)
Retained earnings	2,208,535			2,080,013			2,001,949			1,921,048			1,917,558
Accumulated other comprehensive income (loss)	10,104			15,382			(841		)	(597		)	(7,603		)
Total shareholders’ equity	4,252,511			4,115,995			4,074,089			3,990,218			3,700,393
Total liabilities and shareholders’ equity	$	45,682,202		$	45,080,768		$	43,731,718		$	43,540,017		$	38,799,847

WINTRUST FINANCIAL CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED)

	Three Months Ended
(In thousands, except per share data)	Mar 31, 2021			Dec 31, 2020			Sep 30, 2020			Jun 30, 2020			Mar 31, 2020
Interest income
Interest and fees on loans	$	274,100		$	280,185		$	280,479		$	294,746		$	301,839
Mortgage loans held-for-sale	9,036			6,357			5,791			4,764			3,165
Interest-bearing deposits with banks	1,199			1,294			1,181			1,310			4,768
Federal funds sold and securities purchased under resale agreements	—			—			—			16			86
Investment securities	19,264			18,243			21,819			27,105			32,467
Trading account securities	2			11			6			13			7
Federal Home Loan Bank and Federal Reserve Bank stock	1,745			1,775			1,774			1,765			1,577
Brokerage customer receivables	123			116			106			97			158
Total interest income	305,469			307,981			311,156			329,816			344,067
Interest expense
Interest on deposits	27,944			32,602			39,084			50,057			67,435
Interest on Federal Home Loan Bank advances	4,840			4,952			4,947			4,934			3,360
Interest on other borrowings	2,609			2,779			3,012			3,436			3,546
Interest on subordinated notes	5,477			5,509			5,474			5,506			5,472
Interest on junior subordinated debentures	2,704			2,742			2,703			2,752			2,811
Total interest expense	43,574			48,584			55,220			66,685			82,624
Net interest income	261,895			259,397			255,936			263,131			261,443
Provision for credit losses	(45,347		)	1,180			25,026			135,053			52,961
Net interest income after provision for credit losses	307,242			258,217			230,910			128,078			208,482
Non-interest income
Wealth management	29,309			26,802			24,957			22,636			25,941
Mortgage banking	113,494			86,819			108,544			102,324			48,326
Service charges on deposit accounts	12,036			11,841			11,497			10,420			11,265
Gains (losses) on investment securities, net	1,154			1,214			411			808			(4,359		)
Fees from covered call options	—			—			—			—			2,292
Trading gains (losses), net	419			(102		)	183			(634		)	(451		)
Operating lease income, net	14,440			12,118			11,717			11,785			11,984
Other	15,654			19,669			13,284			14,654			18,244
Total non-interest income	186,506			158,361			170,593			161,993			113,242
Non-interest expense
Salaries and employee benefits	180,809			171,116			164,042			154,156			136,762
Equipment	20,912			20,565			17,251			15,846			14,834
Operating lease equipment depreciation	10,771			9,938			9,425			9,292			9,260
Occupancy, net	19,996			19,687			15,830			16,893			17,547
Data processing	6,048			5,728			5,689			10,406			8,373
Advertising and marketing	8,546			9,850			7,880			7,704			10,862
Professional fees	7,587			6,530			6,488			7,687			6,721
Amortization of other intangible assets	2,007			2,634			2,701			2,820			2,863
FDIC insurance	6,558			7,016			6,772			7,081			4,135
OREO expense, net	(251		)	(114		)	(168		)	237			(876		)
Other	23,906			28,917			28,309			27,246			24,160
Total non-interest expense	286,889			281,867			264,219			259,368			234,641
Income before taxes	206,859			134,711			137,284			30,703			87,083
Income tax expense	53,711			33,507			29,969			9,044			24,271
Net income	$	153,148		$	101,204		$	107,315		$	21,659		$	62,812
Preferred stock dividends	6,991			6,991			10,286			2,050			2,050
Net income applicable to common shares	$	146,157		$	94,213		$	97,029		$	19,609		$	60,762
Net income per common share - Basic	$	2.57		$	1.64		$	1.68		$	0.34		$	1.05
Net income per common share - Diluted	$	2.54		$	1.63		$	1.67		$	0.34		$	1.04
Cash dividends declared per common share	$	0.31		$	0.28		$	0.28		$	0.28		$	0.28
Weighted average common shares outstanding		56,904			57,309			57,597			57,567			57,620
Dilutive potential common shares	681			588			449			414			575
Average common shares and dilutive common shares	57,585			57,897			58,046			57,981			58,195

TABLE 1: LOAN PORTFOLIO MIX AND GROWTH RATES

											% Growth From
(Dollars in thousands)	Mar 31, 2021		Dec 31, 2020		Sep 30, 2020		Jun 30, 2020		Mar 31, 2020		Dec 31, 2020 ⁽¹⁾			Mar 31, 2020
Balance:
Mortgage loans held-for-sale, excluding early buy-out exercised loans guaranteed by U.S. Government Agencies	$	890,749	$	927,307	$	862,924	$	814,667	$	642,386	(16	)	%	39		%
Mortgage loans held-for-sale, early buy-out exercised loans guaranteed by U.S. Government Agencies	369,444		344,783		96,747		18,496		14,548		29			2439
Total mortgage loans held-for-sale	$	1,260,193	$	1,272,090	$	959,671	$	833,163	$	656,934	(4	)	%	92		%

Core loans:
Commercial
Commercial and industrial	$	4,630,795	$	4,675,594	$	4,555,920	$	4,292,032	$	4,580,712	(4	)	%	1		%
Asset-based lending	720,772		721,666		707,365		721,035		1,046,631		(1	)		(31	)
Municipal	493,417		474,103		482,567		519,691		510,711		17			(3	)
Leases	1,290,778		1,288,374		1,215,239		1,179,233		1,044,092		1			24
Commercial real estate
Residential construction	72,058		89,389		101,187		131,639		149,623		(79	)		(52	)
Commercial construction	1,040,631		1,041,729		1,005,708		992,872		929,643		—			12
Land	240,635		240,684		226,254		215,537		222,087		—			8
Office	1,131,472		1,136,844		1,163,790		1,124,643		1,138,527		(2	)		(1	)
Industrial	1,152,522		1,129,433		1,117,702		1,062,218		1,095,180		8			5
Retail	1,198,025		1,224,403		1,175,819		1,148,152		1,179,861		(9	)		2
Multi-family	1,739,521		1,649,801		1,599,651		1,497,834		1,433,390		22			21
Mixed use and other	1,969,915		1,981,849		2,033,031		2,027,850		2,037,220		(2	)		(3	)
Home equity	390,253		425,263		446,274		466,596		494,655		(33	)		(21	)
Residential real estate
Residential real estate loans for investment	1,376,465		1,214,744		1,143,908		1,186,768		1,244,690		54			11
Residential mortgage loans, early buy-out eligible loans guaranteed by U.S. Government Agencies	45,508		44,854		240,902		240,661		132,699		6			(66	)
Total core loans	$	17,492,767	$	17,338,730	$	17,215,317	$	16,806,761	$	17,239,721	4		%	1		%

Niche loans:
Commercial
Franchise	$	1,128,493	$	1,023,027	$	964,150	$	963,531	$	994,180	42		%	14		%
Mortgage warehouse lines of credit	587,868		567,389		503,371		352,659		323,844		15			82
Community Advantage - homeowners association	272,222		267,374		254,963		240,634		231,757		7			17
Insurance agency lending	290,880		222,519		214,411		255,049		293,959		125			(1	)
Premium Finance receivables
U.S. commercial insurance	3,342,730		3,438,087		3,494,155		3,439,987		3,015,549		(11	)		11
Canada commercial insurance	615,813		616,402		565,989		559,787		449,506		—			37
Life insurance	6,111,495		5,857,436		5,488,832		5,400,802		5,221,639		18			17
Consumer and other	35,983		32,188		55,354		48,325		37,166		48			(3	)
Total niche loans	$	12,385,484	$	12,024,422	$	11,541,225	$	11,260,774	$	10,567,600	12		%	17		%

Commercial PPP loans:
Originated in 2020	$	2,049,342	$	2,715,921	$	3,379,013	$	3,335,368	$	—	(100	)	%	100		%
Originated in 2021	1,243,640		—		—		—		—		100			100
Total commercial PPP loans	$	3,292,982	$	2,715,921	$	3,379,013	$	3,335,368	$	—	86		%	100		%

Total loans, net of unearned income	$	33,171,233	$	32,079,073	$	32,135,555	$	31,402,903	$	27,807,321	14		%	19		%

(1) Annualized.

TABLE 2: DEPOSIT PORTFOLIO MIX AND GROWTH RATES

																% Growth From
(Dollars in thousands)	Mar 31, 2021			Dec 31, 2020			Sep 30, 2020			Jun 30, 2020			Mar 31, 2020			Dec 31, 2020⁽¹⁾			Mar 31, 2020
Balance:
Non-interest-bearing	$	12,297,337		$	11,748,455		$	10,409,747		$	10,204,791		$	7,556,755		19		%	63		%
NOW and interest-bearing demand deposits	3,562,312			3,349,021			3,294,071			3,440,348			3,181,159			26			12
Wealth management deposits ⁽²⁾	4,274,527			4,138,712			4,235,583			4,433,020			3,936,968			13			9
Money market	9,236,434			9,348,806			9,423,653			9,288,976			8,114,659			(5	)		14
Savings	3,690,892			3,531,029			3,415,073			3,447,352			3,282,340			18			12
Time certificates of deposit	4,811,150			4,976,628			5,066,295			4,837,387			5,389,779			(13	)		(11	)
Total deposits	$	37,872,652		$	37,092,651		$	35,844,422		$	35,651,874		$	31,461,660		9		%	20		%
Mix:
Non-interest-bearing	32		%	32		%	29		%	29		%	24		%
NOW and interest-bearing demand deposits	9			9			9			10			10
Wealth management deposits ⁽²⁾	11			11			12			12			13
Money market	25			25			26			25			26
Savings	10			10			10			10			10
Time certificates of deposit	13			13			14			14			17
Total deposits	100		%	100		%	100		%	100		%	100		%

(1) Annualized.
(2) Represents deposit balances of the Company’s subsidiary banks from brokerage customers of Wintrust Investments, Chicago Deferred Exchange Company, LLC ("CDEC"), trust and asset management customers of the Company and brokerage customers from unaffiliated companies which have been placed into deposit accounts.

TABLE 3: TIME CERTIFICATES OF DEPOSIT MATURITY/RE-PRICING ANALYSIS
As of March 31, 2021

(Dollars in thousands)	Total Time Certificates of Deposit		Weighted-Average Rate of Maturing Time Certificates of Deposit ⁽¹⁾
1-3 months	$	1,385,311	1.75	%
4-6 months	993,635		1.50
7-9 months	806,574		1.13
10-12 months	662,375		0.64
13-18 months	496,540		0.69
19-24 months	217,147		0.92
24+ months	249,568		0.74
Total	$	4,811,150	1.24	%

(1) Weighted-average rate excludes the impact of purchase accounting fair value adjustments.

TABLE 4: QUARTERLY AVERAGE BALANCES

	Average Balance for three months ended,
	Mar 31,			Dec 31,			Sep 30,			Jun 30,			Mar 31,
(In thousands)	2021			2020			2020			2020			2020
Interest-bearing deposits with banks and cash equivalents ⁽¹⁾	$	4,230,886		$	4,381,040		$	3,411,164		$	3,240,167		$	1,418,809
Investment securities ⁽²⁾	3,944,676			3,534,594			3,789,422			4,309,471			4,780,709
FHLB and FRB stock	135,758			135,569			135,567			135,360			114,829
Liquidity management assets ⁽³⁾	8,311,320			8,051,203			7,336,153			7,684,998			6,314,347
Other earning assets ⁽³⁾⁽⁴⁾	20,370			18,716			16,656			16,917			19,166
Mortgage loans held-for-sale	1,151,848			893,395			822,908			705,702			403,262
Loans, net of unearned income ⁽³⁾⁽⁵⁾	32,442,927			31,783,279			31,634,608			30,336,626			26,936,728
Total earning assets ⁽³⁾	41,926,465			40,746,593			39,810,325			38,744,243			33,673,503
Allowance for loan and investment security losses	(327,080		)	(336,139		)	(321,732		)	(222,485		)	(176,291		)
Cash and due from banks	366,413			344,536			345,438			352,423			321,982
Other assets	3,022,935			3,055,015			3,128,813			3,168,548			2,806,296
Total assets	$	44,988,733		$	43,810,005		$	42,962,844		$	42,042,729		$	36,625,490

NOW and interest-bearing demand deposits	$	3,493,451		$	3,320,527		$	3,435,089		$	3,323,124		$	3,113,733
Wealth management deposits	4,156,398			4,066,948			4,239,300			4,380,996			2,838,719
Money market accounts	9,335,920			9,435,344			9,332,668			8,727,966			7,990,775
Savings accounts	3,587,566			3,413,388			3,419,586			3,394,480			3,189,835
Time deposits	4,875,392			5,043,558			4,900,839			5,104,701			5,526,407
Interest-bearing deposits	25,448,727			25,279,765			25,327,482			24,931,267			22,659,469
Federal Home Loan Bank advances	1,228,433			1,228,425			1,228,421			1,214,375			951,613
Other borrowings	518,188			510,725			512,787			493,350			469,577
Subordinated notes	436,532			436,433			436,323			436,226			436,119
Junior subordinated debentures	253,566			253,566			253,566			253,566			253,566
Total interest-bearing liabilities	27,885,446			27,708,914			27,758,579			27,328,784			24,770,344
Non-interest-bearing deposits	11,811,194			10,874,912			9,988,769			9,607,528			7,235,177
Other liabilities	1,127,203			1,175,893			1,180,594			1,197,571			909,800
Equity	4,164,890			4,050,286			4,034,902			3,908,846			3,710,169
Total liabilities and shareholders’ equity	$	44,988,733		$	43,810,005		$	42,962,844		$	42,042,729		$	36,625,490

Net free funds/contribution ⁽⁶⁾	$	14,041,019		$	13,037,679		$	12,051,746		$	11,415,459		$	8,903,159

(1) Includes interest-bearing deposits from banks, federal funds sold and securities purchased under resale agreements.
(2) Investment securities includes investment securities classified as available-for-sale and held-to-maturity, and equity securities with readily determinable fair values. Equity securities without readily determinable fair values are included within other assets.
(3) See "Supplemental Non-GAAP Financial Measures/Ratios" at Table 17 for additional information on this performance measure/ratio.
(4) Other earning assets include brokerage customer receivables and trading account securities.
(5) Loans, net of unearned income, include non-accrual loans.
(6) Net free funds are the difference between total average earning assets and total average interest-bearing liabilities. The estimated contribution to net interest margin from net free funds is calculated using the rate paid for total interest-bearing liabilities.

TABLE 5: QUARTERLY NET INTEREST INCOME

	Net Interest Income for three months ended,
	Mar 31,			Dec 31,			Sep 30,			Jun 30,			Mar 31,
(In thousands)	2021			2020			2020			2020			2020
Interest income:
Interest-bearing deposits with banks and cash equivalents	$	1,199		$	1,294		$	1,181		$	1,326		$	4,854
Investment securities	19,764			18,773			22,365			27,643			33,018
FHLB and FRB stock	1,745			1,775			1,774			1,765			1,577
Liquidity management assets ⁽¹⁾	22,708			21,842			25,320			30,734			39,449
Other earning assets ⁽¹⁾	125			130			113			113			167
Mortgage loans held-for-sale	9,036			6,357			5,791			4,764			3,165
Loans, net of unearned income ⁽¹⁾	274,484			280,509			280,960			295,322			302,699
Total interest income	$	306,353		$	308,838		$	312,184		$	330,933		$	345,480

Interest expense:
NOW and interest-bearing demand deposits	$	901		$	1,074		$	1,342		$	1,561		$	3,665
Wealth management deposits	7,351			7,436			7,662			7,244			6,935
Money market accounts	2,865			3,740			7,245			13,140			22,363
Savings accounts	430			773			2,104			3,840			5,790
Time deposits	16,397			19,579			20,731			24,272			28,682
Interest-bearing deposits	27,944			32,602			39,084			50,057			67,435
Federal Home Loan Bank advances	4,840			4,952			4,947			4,934			3,360
Other borrowings	2,609			2,779			3,012			3,436			3,546
Subordinated notes	5,477			5,509			5,474			5,506			5,472
Junior subordinated debentures	2,704			2,742			2,703			2,752			2,811
Total interest expense	$	43,574		$	48,584		$	55,220		$	66,685		$	82,624

Less: Fully taxable-equivalent adjustment	(884		)	(857		)	(1,028		)	(1,117		)	(1,413		)
Net interest income (GAAP) ⁽²⁾	261,895			259,397			255,936			263,131			261,443
Fully taxable-equivalent adjustment	884			857			1,028			1,117			1,413
Net interest income, fully taxable-equivalent (non-GAAP) ⁽²⁾	$	262,779		$	260,254		$	256,964		$	264,248		$	262,856

(1) Interest income on tax-advantaged loans, trading securities and investment securities reflects a taxable-equivalent adjustment based on the marginal federal corporate tax rate in effect as of the applicable period.
(2) See "Supplemental Non-GAAP Financial Measures/Ratios" at Table 17 for additional information on this performance measure/ratio.

TABLE 6: QUARTERLY NET INTEREST MARGIN

	Net Interest Margin for three months ended,
	Mar 31, 2021			Dec 31, 2020			Sep 30, 2020			Jun 30, 2020			Mar 31, 2020
Yield earned on:
Interest-bearing deposits with banks and cash equivalents	0.11		%	0.12		%	0.14		%	0.16		%	1.38		%
Investment securities	2.03			2.11			2.35			2.58			2.78
FHLB and FRB stock	5.21			5.21			5.21			5.24			5.52
Liquidity management assets	1.11			1.08			1.37			1.61			2.51
Other earning assets	2.50			2.79			2.71			2.71			3.50
Mortgage loans held-for-sale	3.18			2.83			2.80			2.72			3.16
Loans, net of unearned income	3.43			3.51			3.53			3.92			4.52
Total earning assets	2.96		%	3.02		%	3.12		%	3.44		%	4.13		%

Rate paid on:
NOW and interest-bearing demand deposits	0.10		%	0.13		%	0.16		%	0.19		%	0.47		%
Wealth management deposits	0.72			0.73			0.72			0.67			0.98
Money market accounts	0.12			0.16			0.31			0.61			1.13
Savings accounts	0.05			0.09			0.24			0.45			0.73
Time deposits	1.36			1.54			1.68			1.91			2.09
Interest-bearing deposits	0.45			0.51			0.61			0.81			1.20
Federal Home Loan Bank advances	1.60			1.60			1.60			1.63			1.42
Other borrowings	2.04			2.16			2.34			2.80			3.04
Subordinated notes	5.02			5.05			5.02			5.05			5.02
Junior subordinated debentures	4.27			4.23			4.17			4.29			4.39
Total interest-bearing liabilities	0.63		%	0.70		%	0.79		%	0.98		%	1.34		%

Interest rate spread⁽¹⁾⁽²⁾	2.33		%	2.32		%	2.33		%	2.46		%	2.79		%
Less: Fully taxable-equivalent adjustment	(0.01	)		(0.01	)		(0.01	)		(0.01	)		(0.02	)
Net free funds/contribution⁽³⁾	0.21			0.22			0.24			0.28			0.35
Net interest margin (GAAP)⁽²⁾	2.53		%	2.53		%	2.56		%	2.73		%	3.12		%
Fully taxable-equivalent adjustment	0.01			0.01			0.01			0.01			0.02
Net interest margin, fully taxable-equivalent (non-GAAP)⁽²⁾	2.54		%	2.54		%	2.57		%	2.74		%	3.14		%

(1) Interest rate spread is the difference between the yield earned on earning assets and the rate paid on interest-bearing liabilities.
(2) See "Supplemental Non-GAAP Financial Measures/Ratios" at Table 17 for additional information on this performance measure/ratio.
(3) Net free funds are the difference between total average earning assets and total average interest-bearing liabilities. The estimated contribution to net interest margin from net free funds is calculated using the rate paid for total interest-bearing liabilities.

TABLE 7: INTEREST RATE SENSITIVITY

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

The following interest rate scenarios display the percentage change in net interest income over a one-year time horizon assuming increases of 100 and 200 basis points and a decrease of 100 basis points. The Static Shock Scenario results incorporate actual cash flows and repricing characteristics for balance sheet instruments following an instantaneous, parallel change in market rates based upon a static (i.e. no growth or constant) balance sheet. Conversely, the Ramp Scenario results incorporate management’s projections of future volume and pricing of each of the product lines following a gradual, parallel change in market rates over twelve months. Actual results may differ from these simulated results due to timing, magnitude, and frequency of interest rate changes as well as changes in market conditions and management strategies. The interest rate sensitivity for both the Static Shock and Ramp Scenario is as follows:

Static Shock Scenario	+200 Basis Points		+100 Basis Points		-100 Basis Points
Mar 31, 2021	22.0	%	10.2	%	(7.2	)	%
Dec 31, 2020	25.0		11.6		(7.9	)
Sep 30, 2020	23.4		10.9		(8.1	)
Jun 30, 2020	25.9		12.6		(8.3	)
Mar 31, 2020	22.5		10.6		(9.4	)

Ramp Scenario	+200 Basis Points		+100 Basis Points		-100 Basis Points
Mar 31, 2021	10.7	%	5.4	%	(3.6	)	%
Dec 31, 2020	11.4		5.7		(3.3	)
Sep 30, 2020	10.7		5.2		(3.5	)
Jun 30, 2020	13.0		6.7		(3.2	)
Mar 31, 2020	7.7		3.7		(3.8	)

TABLE 8: MATURITIES AND SENSITIVITIES TO CHANGES IN INTEREST RATES

Loans repricing or maturity period

As of March 31, 2021

One year or less

From one to five years

Over five years

(In thousands)

Total

Commercial

Fixed rate

310,427

2,025,263

784,277

3,119,967

Fixed Rate - PPP

—

3,292,982

—

3,292,982

Variable rate

6,291,842

3,350

6,295,258

Total commercial

6,602,269

5,321,595

784,343

12,708,207

Commercial real estate

Fixed rate

550,899

2,075,177

382,447

3,008,523

Variable rate

5,505,986

30,270

—

5,536,256

Total commercial real estate

6,056,885

2,105,447

382,447

8,544,779

Home equity

Fixed rate

14,653

8,665

23,369

Variable rate

366,884

—

366,884

Total home equity

381,537

8,665

390,253

Residential real estate

Fixed rate

23,194

11,244

617,596

652,034

Variable rate

65,907

290,906

413,126

769,939

Total residential real estate

89,101

302,150

1,030,722

1,421,973

Premium finance receivables - commercial

Fixed rate

3,851,457

107,086

—

3,958,543

Variable rate

—

Total premium finance receivables - commercial

3,851,457

107,086

—

3,958,543

Premium finance receivables - life insurance

Fixed rate

11,493

348,721

20,365

380,579

Variable rate

5,730,916

—

5,730,916

Total premium finance receivables - life insurance

5,742,409

348,721

20,365

6,111,495

Consumer and other

Fixed rate

14,753

4,536

1,154

20,443

Variable rate

15,540

—

15,540

Total consumer and other

30,293

4,536

1,154

35,983

Total per category

Fixed rate

4,776,876

4,580,692

1,805,890

11,163,458

Fixed rate - PPP

—

3,292,982

—

3,292,982

Variable rate

17,977,075

324,526

413,192

18,714,793

Total loans, net of unearned income

22,753,951

8,198,200

2,219,082

33,171,233

Variable Rate Loan Pricing by Index:

Prime

2,296,647

One- month LIBOR

9,493,060

Three- month LIBOR

413,942

Twelve- month LIBOR

6,225,191

Other

285,953

Total variable rate

18,714,793

Graph available at the following link: http://ml.globenewswire.com/Resource/Download/3b1cd75f-31c0-4b3f-a1ec-b86cbbf9fddb

Source: Bloomberg

As noted in the table on the previous page, the majority of the Company’s portfolio is tied to LIBOR indices which, as shown in the table above, do not mirror the same changes as the Prime rate which has historically moved when the Federal Reserve raises or lowers interest rates. Specifically, the Company has $9.5 billion of variable rate loans tied to one-month LIBOR and $6.2 billion of variable rate loans tied to twelve-month LIBOR. The above chart shows:

	Basis Point (bp) Change in
	Prime		1-month LIBOR		12-month LIBOR
First Quarter 2021	0	bp	-3	bps	-6	bps
Fourth Quarter 2020	0		-1		-2
Third Quarter 2020	0		-1		-19
Second Quarter 2020	0		-83		-45
First Quarter 2020	-150		-77		-100

TABLE 9: ALLOWANCE FOR CREDIT LOSSES

	Three Months Ended
	Mar 31,				Dec 31,				Sep 30,				Jun 30,				Mar 31,
(Dollars in thousands)	2021				2020				2020				2020				2020
Allowance for credit losses at beginning of period	$	379,969			$	388,971			$	373,174			$	253,482			$	158,461
Cumulative effect adjustment from the adoption of ASU 2016-13	—				—				—				—				47,418
Provision for credit losses	(45,347		)		1,180				25,026				135,053				52,961
Other adjustments	31				155				55				42				(73		)
Charge-offs:
Commercial	11,781				5,184				5,270				5,686				2,153
Commercial real estate	980				6,637				1,529				7,224				570
Home equity	—				683				138				239				1,001
Residential real estate	2				114				83				293				401
Premium finance receivables	3,239				4,214				4,640				3,434				3,184
Consumer and other	114				198				103				99				128
Total charge-offs	16,116				17,030				11,763				16,975				7,437
Recoveries:
Commercial	452				4,168				428				112				384
Commercial real estate	200				904				175				493				263
Home equity	101				77				111				46				294
Residential real estate	204				69				25				30				60
Premium finance receivables	1,782				1,445				1,720				833				1,110
Consumer and other	32				30				20				58				41
Total recoveries	2,771				6,693				2,479				1,572				2,152
Net charge-offs	(13,345		)		(10,337		)		(9,284		)		(15,403		)		(5,285		)
Allowance for credit losses at period end	$	321,308			$	379,969			$	388,971			$	373,174			$	253,482

Annualized net charge-offs (recoveries) by category as a percentage of its own respective category’s average:
Commercial	0.37			%	0.03			%	0.16			%	0.20			%	0.08			%
Commercial real estate	0.04				0.27				0.06				0.33				0.02
Home equity	(0.10		)		0.55				0.02				0.16				0.57
Residential real estate	(0.06		)		0.02				0.02				0.09				0.11
Premium finance receivables	0.06				0.11				0.12				0.12				0.10
Consumer and other	0.57				0.78				0.49				0.25				0.56
Total loans, net of unearned income	0.17			%	0.13			%	0.12			%	0.20			%	0.08			%

Loans at period end	$	33,171,233			$	32,079,073			$	32,135,555			$	31,402,903			$	27,807,321
Allowance for loan losses as a percentage of loans at period end	0.84			%	1.00			%	1.01			%	1.00			%	0.78			%
Allowance for loan and unfunded lending-related commitment losses as a percentage of loans at period end	0.97				1.18				1.21				1.19				0.91
Allowance for loan and unfunded lending-related commitment losses as a percentage of loans at period end, excluding PPP loans	1.08				1.29				1.35				1.33				0.91

TABLE 10: ALLOWANCE AND PROVISION FOR CREDIT LOSSES BY COMPONENT

	Three Months Ended
	Mar 31,			Dec 31,			Sep 30,			Jun 30,			Mar 31,
(In thousands)	2021			2020			2020			2020			2020
Provision for loan losses	$	(28,351	)	$	3,597		$	21,678		$	112,822		$	50,396
Provision for unfunded lending-related commitments losses	(17,035		)	(2,413		)	3,350			22,236			2,569
Provision for held-to-maturity securities losses	39			(4		)	(2		)	(5		)	(4		)
Provision for credit losses	$	(45,347	)	$	1,180		$	25,026		$	135,053		$	52,961

Allowance for loan losses	$	277,709		$	319,374		$	325,959		$	313,510		$	216,050
Allowance for unfunded lending-related commitments losses	43,500			60,536			62,949			59,599			37,362
Allowance for loan losses and unfunded lending-related commitments losses	321,209			379,910			388,908			373,109			253,412
Allowance for held-to-maturity securities losses	99			59			63			65			70
Allowance for credit losses	$	321,308		$	379,969		$	388,971		$	373,174		$	253,482

TABLE 11: ALLOWANCE BY LOAN PORTFOLIO

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

	As of Mar 31, 2021						As of Dec 31, 2020
(Dollars in thousands)	Recorded Investment		Calculated Allowance		% of its category’s balance		Recorded Investment		Calculated Allowance		% of its category’s balance
Commercial:
Commercial, industrial and other, excluding PPP loans	$	9,415,225	$	95,637	1.02	%	$	9,240,046	$	94,210	1.02	%
Commercial PPP loans	3,292,982		3		0.00		2,715,921		2		0.00
Commercial real estate:
Construction and development	1,353,324		45,327		3.35		1,371,802		78,833		5.75
Non-construction	7,191,455		136,465		1.90		7,122,330		164,770		2.31
Home equity	390,253		11,382		2.92		425,263		11,437		2.69
Residential real estate	1,421,973		14,242		1.00		1,259,598		12,459		0.99
Premium finance receivables
Commercial insurance loans	3,958,543		16,945		0.43		4,054,489		17,267		0.43
Life insurance loans	6,111,495		532		0.01		5,857,436		510		0.01
Consumer and other	35,983		676		1.88		32,188		422		1.31
Total loans, net of unearned income	$	33,171,233	$	321,209	0.97	%	$	32,079,073	$	379,910	1.18	%
Total loans, net of unearned income, excluding PPP loans	$	29,878,251	$	321,206	1.08	%	$	29,363,152	$	379,908	1.29	%

Total core loans ⁽¹⁾	$	17,492,767	$	283,505	1.62	%	$	17,338,730	$	347,111	2.00	%
Total niche loans ⁽¹⁾	12,385,484		37,701		0.30		12,024,422		32,797		0.27
Total PPP loans	3,292,982		3		0.00		2,715,921		2		0.00

(1) See Table 1 for additional detail on core and niche loans.

TABLE 12: LOAN PORTFOLIO AGING

(Dollars in thousands)	Mar 31, 2021		Dec 31, 2020		Sep 30, 2020		Jun 30, 2020		Mar 31, 2020
Loan Balances:
Commercial
Nonaccrual	$	22,459	$	21,743	$	42,036	$	42,882	$	49,916
90+ days and still accruing	—		307		—		1,374		1,241
60-89 days past due	13,292		6,900		2,168		8,952		8,873
30-59 days past due	35,541		44,381		48,271		23,720		86,129
Current	12,636,915		11,882,636		12,184,524		11,782,304		8,879,727
Total commercial	$	12,708,207	$	11,955,967	$	12,276,999	$	11,859,232	$	9,025,886
Commercial real estate
Nonaccrual	$	34,380	$	46,107	$	68,815	$	64,557	$	62,830
90+ days and still accruing	—		—		—		—		516
60-89 days past due	8,156		5,178		8,299		26,480		10,212
30-59 days past due	70,168		32,116		53,462		75,528		75,068
Current	8,432,075		8,410,731		8,292,566		8,034,180		8,036,905
Total commercial real estate	$	8,544,779	$	8,494,132	$	8,423,142	8,200,745		$	8,185,531
Home equity
Nonaccrual	$	5,536	$	6,529	$	6,329	$	7,261	$	7,243
90+ days and still accruing	—		—		—		—		—
60-89 days past due	492		47		70		—		214
30-59 days past due	780		637		1,148		1,296		2,096
Current	383,445		418,050		438,727		458,039		485,102
Total home equity	$	390,253	$	425,263	$	446,274	$	466,596	$	494,655
Residential real estate
Nonaccrual	$	21,553	$	26,071	$	22,069	$	19,529	$	18,965
90+ days and still accruing	—		—		—		—		605
60-89 days past due	944		1,635		814		1,506		345
30-59 days past due	13,768		12,584		2,443		4,400		28,983
Current	1,385,708		1,219,308		1,359,484		1,401,994		1,328,491
Total residential real estate	$	1,421,973	$	1,259,598	$	1,384,810	$	1,427,429	$	1,377,389
Premium finance receivables
Nonaccrual	$	9,690	$	13,264	$	21,080	$	16,460	$	21,058
90+ days and still accruing	4,783		12,792		12,177		35,638		16,505
60-89 days past due	5,113		27,801		38,286		42,353		12,730
30-59 days past due	31,373		49,274		80,732		61,160		70,185
Current	10,019,079		9,808,794		9,396,701		9,244,965		8,566,216
Total premium finance receivables	$	10,070,038	$	9,911,925	$	9,548,976	$	9,400,576	$	8,686,694
Consumer and other
Nonaccrual	$	497	$	436	$	422	$	427	$	403
90+ days and still accruing	161		264		175		156		78
60-89 days past due	8		24		273		4		625
30-59 days past due	74		136		493		281		207
Current	35,243		31,328		53,991		47,457		35,853
Total consumer and other	$	35,983	$	32,188	$	55,354	$	48,325	$	37,166
Total loans, net of unearned income
Nonaccrual	$	94,115	$	114,150	$	160,751	$	151,116	$	160,415
90+ days and still accruing	4,944		13,363		12,352		37,168		18,945
60-89 days past due	28,005		41,585		49,910		79,295		32,999
30-59 days past due	151,704		139,128		186,549		166,385		262,668
Current	32,892,465		31,770,847		31,725,993		30,968,939		27,332,294
Total loans, net of unearned income	$	33,171,233	$	32,079,073	$	32,135,555	$	31,402,903	$	27,807,321

TABLE 13: NON-PERFORMING ASSETS AND TROUBLED DEBT RESTRUCTURINGS ("TDRs")

	Mar 31,			Dec 31,			Sep 30,			Jun 30,			Mar 31,
(Dollars in thousands)	2021			2020			2020			2020			2020
Loans past due greater than 90 days and still accruing ⁽¹⁾:
Commercial	$	—		$	307		$	—		$	1,374		$	1,241
Commercial real estate	—			—			—			—			516
Home equity	—			—			—			—			—
Residential real estate	—			—			—			—			605
Premium finance receivables	4,783			12,792			12,177			35,638			16,505
Consumer and other	161			264			175			156			78
Total loans past due greater than 90 days and still accruing	4,944			13,363			12,352			37,168			18,945
Non-accrual loans:
Commercial	22,459			21,743			42,036			42,882			49,916
Commercial real estate	34,380			46,107			68,815			64,557			62,830
Home equity	5,536			6,529			6,329			7,261			7,243
Residential real estate	21,553			26,071			22,069			19,529			18,965
Premium finance receivables	9,690			13,264			21,080			16,460			21,058
Consumer and other	497			436			422			427			403
Total non-accrual loans	94,115			114,150			160,751			151,116			160,415
Total non-performing loans:
Commercial	22,459			22,050			42,036			44,256			51,157
Commercial real estate	34,380			46,107			68,815			64,557			63,346
Home equity	5,536			6,529			6,329			7,261			7,243
Residential real estate	21,553			26,071			22,069			19,529			19,570
Premium finance receivables	14,473			26,056			33,257			52,098			37,563
Consumer and other	658			700			597			583			481
Total non-performing loans	$	99,059		$	127,513		$	173,103		$	188,284		$	179,360
Other real estate owned	8,679			9,711			2,891			2,409			2,701
Other real estate owned - from acquisitions	7,134			6,847			6,326			7,788			8,325
Other repossessed assets	—			—			—			—			—
Total non-performing assets	$	114,872		$	144,071		$	182,320		$	198,481		$	190,386
Accruing TDRs not included within non-performing assets	$	46,151		$	47,023		$	46,410		$	48,609		$	47,049
Total non-performing loans by category as a percent of its own respective category’s period-end balance:
Commercial	0.18		%	0.18		%	0.34		%	0.37		%	0.57		%
Commercial real estate	0.40			0.54			0.82			0.79			0.77
Home equity	1.42			1.54			1.42			1.56			1.46
Residential real estate	1.52			2.07			1.59			1.37			1.42
Premium finance receivables	0.14			0.26			0.35			0.55			0.43
Consumer and other	1.83			2.17			1.08			1.21			1.29
Total loans, net of unearned income	0.30		%	0.40		%	0.54		%	0.60		%	0.65		%
Total non-performing assets as a percentage of total assets	0.25		%	0.32		%	0.42		%	0.46		%	0.49		%
Allowance for credit losses as a percentage of non-accrual loans	341.29		%	332.82		%	241.93		%	246.90		%	157.97		%

(1) As of March 31, 2021, December 31, 2020, September 30, 2020, June 30, 2020, and March 31, 2020, no TDRs were past due greater than 90 days and still accruing interest.

Non-performing Loans Rollforward

	Three Months Ended
	Mar 31,			Dec 31,			Sep 30,			Jun 30,			Mar 31,
(In thousands)	2021			2020			2020			2020			2020

Balance at beginning of period	$	127,513		$	173,103		$	188,284		$	179,360		$	117,588
Additions from becoming non-performing in the respective period	9,894			13,224			19,771			20,803			32,195
Additions from the adoption of ASU 2016-13	—			—			—			—			37,285
Return to performing status	(654		)	(1,000		)	(6,202		)	(2,566		)	(486		)
Payments received	(22,731		)	(30,146		)	(3,733		)	(11,201		)	(7,949		)
Transfer to OREO and other repossessed assets	(1,372		)	(12,662		)	(598		)	—			(1,297		)
Charge-offs	(2,952		)	(7,817		)	(6,583		)	(12,884		)	(2,551		)
Net change for niche loans ⁽¹⁾	(10,639		)	(7,189		)	(17,836		)	14,772			4,575
Balance at end of period	$	99,059		$	127,513		$	173,103		$	188,284		$	179,360

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

TDRs

	Mar 31,		Dec 31,		Sep 30,		Jun 30,		Mar 31,
(In thousands)	2021		2020		2020		2020		2020
Accruing TDRs:
Commercial	$	7,536	$	7,699	$	7,863	$	5,338	$	6,500
Commercial real estate	9,478		10,549		10,846		19,106		18,043
Residential real estate and other	29,137		28,775		27,701		24,165		22,506
Total accrual	$	46,151	$	47,023	$	46,410	$	48,609	$	47,049
Non-accrual TDRs: ⁽¹⁾
Commercial	$	5,583	$	10,491	$	13,132	$	20,788	$	17,206
Commercial real estate	1,309		6,177		13,601		8,545		14,420
Residential real estate and other	3,540		4,501		5,392		5,606		4,962
Total non-accrual	$	10,432	$	21,169	$	32,125	$	34,939	$	36,588
Total TDRs:
Commercial	$	13,119	$	18,190	$	20,995	$	26,126	$	23,706
Commercial real estate	10,787		16,726		24,447		27,651		32,463
Residential real estate and other	32,677		33,276		33,093		29,771		27,468
Total TDRs	$	56,583	$	68,192	$	78,535	$	83,548	$	83,637

(1) Included in total non-performing loans.

Other Real Estate Owned

	Three Months Ended
	Mar 31,			Dec 31,			Sep 30,			Jun 30,			Mar 31,
(In thousands)	2021			2020			2020			2020			2020
Balance at beginning of period	$	16,558		$	9,217		$	10,197		$	11,026		$	15,171
Disposals/resolved	(2,162		)	(3,839		)	(1,532		)	(612		)	(4,793		)
Transfers in at fair value, less costs to sell	1,587			11,508			777			—			954
Additions from acquisition	—			—			—			—			—
Fair value adjustments	(170		)	(328		)	(225		)	(217		)	(306		)
Balance at end of period	$	15,813		$	16,558		$	9,217		$	10,197		$	11,026

	Period End
	Mar 31,			Dec 31,			Sep 30,			Jun 30,			Mar 31,
Balance by Property Type:	2021			2020			2020			2020			2020
Residential real estate	$	2,713		$	2,324		$	1,839		$	1,382		$	1,684
Residential real estate development	1,287			1,691			—			—			—
Commercial real estate	11,813			12,543			7,378			8,815			9,342
Total	$	15,813		$	16,558		$	9,217		$	10,197		$	11,026

TABLE 14: NON-INTEREST INCOME

	Three Months Ended															Q1 2021 compared to Q4 2020						Q1 2021 compared to Q1 2020
	Mar 31,			Dec 31,			Sep 30,			Jun 30,			Mar 31,			Q1 2021 compared to Q4 2020						Q1 2021 compared to Q1 2020
(Dollars in thousands)	2021			2020			2020			2020			2020			$ Change			% Change			$ Change			% Change
Brokerage	$	5,040		$	4,740		$	4,563		$	4,147		$	5,281		$	300		6		%	$	(241	)	(5	)	%
Trust and asset management	24,269			22,062			20,394			18,489			20,660			2,207			10			3,609			17
Total wealth management	29,309			26,802			24,957			22,636			25,941			2,507			9			3,368			13
Mortgage banking	113,494			86,819			108,544			102,324			48,326			26,675			31			65,168			135
Service charges on deposit accounts	12,036			11,841			11,497			10,420			11,265			195			2			771			7
Gains (losses) on investment securities, net	1,154			1,214			411			808			(4,359		)	(60		)	(5	)		5,513			NM
Fees from covered call options	—			—			—			—			2,292			—			NM			(2,292		)	(100	)
Trading gains (losses), net	419			(102		)	183			(634		)	(451		)	521			NM			870			NM
Operating lease income, net	14,440			12,118			11,717			11,785			11,984			2,322			19			2,456			20
Other:
Interest rate swap fees	2,488			4,930			4,029			5,693			6,066			(2,442		)	(50	)		(3,578		)	(59	)
BOLI	1,124			2,846			1,218			1,950			(1,284		)	(1,722		)	(61	)		2,408			NM
Administrative services	1,256			1,263			1,077			933			1,112			(7		)	(1	)		144			13
Foreign currency remeasurement gains (losses)	99			(208		)	(54		)	(208		)	(151		)	307			NM			250			NM
Early pay-offs of capital leases	(52		)	118			165			275			74			(170		)	NM			(126		)	NM
Miscellaneous	10,739			10,720			6,849			6,011			12,427			19			—			(1,688		)	(14	)
Total Other	15,654			19,669			13,284			14,654			18,244			(4,015		)	(20	)		(2,590		)	(14	)
Total Non-Interest Income	$	186,506		$	158,361		$	170,593		$	161,993		$	113,242		$	28,145		18		%	$	73,264		65		%

NM - Not meaningful.

TABLE 15: MORTGAGE BANKING

	Three Months Ended
(Dollars in thousands)	Mar 31, 2021				Dec 31, 2020				Sep 30, 2020				Jun 30, 2020				Mar 31, 2020
Originations:
Retail originations	$	1,641,664			$	1,757,093			$	1,590,699			$	1,588,932			$	773,144
Veterans First originations	580,303				594,151				635,876				621,878				442,957
Total originations for sale (A)	$	2,221,967			$	2,351,244			$	2,226,575			$	2,210,810			$	1,216,101
Originations for investment	321,858				192,107				73,711				56,954				73,727
Total originations	$	2,543,825			$	2,543,351			$	2,300,286			$	2,267,764			$	1,289,828

Purchases as a percentage of originations for sale	27			%	35			%	41			%	30			%	37			%
Refinances as a percentage of originations for sale	73				65				59				70				63
Total	100			%	100			%	100			%	100			%	100			%

Production Margin:
Production revenue (B) ⁽¹⁾	$	71,282			$	70,886			$	94,148			$	93,433			$	49,327
Production margin (B / A)	3.21			%	3.01			%	4.23			%	4.23			%	4.06			%

Mortgage Servicing:
Loans serviced for others (C)	$	11,530,676			$	10,833,135			$	10,139,878			$	9,188,285			$	8,314,634
MSRs, at fair value (D)	124,316				92,081				86,907				77,203				73,504
Percentage of MSRs to loans serviced for others (D / C)	1.08			%	0.85			%	0.86			%	0.84			%	0.88			%
Servicing income	$	9,636			$	9,829			$	8,118			$	6,908			$	7,031

Components of MSR:
MSR - current period capitalization	$	24,616			$	20,343			$	20,936			$	20,351			$	9,447
MSR - collection of expected cash flows - paydowns	(728		)		(688		)		(590		)		(419		)		(547		)
MSR - collection of expected cash flows - payoffs	(9,440		)		(8,335		)		(7,272		)		(8,252		)		(6,476		)
Valuation:
MSR - changes in fair value model assumptions	18,045				(5,223		)		(3,002		)		(7,982		)		(14,557		)
Gain on derivative contract held as an economic hedge, net	—				—				—				589				4,160
MSR valuation adjustment, net of gain on derivative contract held as an economic hedge	$	18,045			$	(5,223	)		$	(3,002	)		$	(7,393	)		$	(10,397	)

Summary of Mortgage Banking Revenue:
Production revenue ⁽¹⁾	$	71,282			$	70,886			$	94,148			$	93,433			$	49,327
Servicing income	9,636				9,829				8,118				6,908				7,031
MSR activity	32,493				6,097				10,072				4,287				(7,973		)
Other	83				7				(3,794		)		(2,304		)		(59		)
Total mortgage banking revenue	$	113,494			$	86,819			$	108,544			$	102,324			$	48,326

(1) Production revenue represents revenue earned from the origination and subsequent sale of mortgages, including gains on loans sold and fees from originations, changes in derivative activity, processing and other related activities, and excludes servicing fees, changes in the fair value of servicing rights and changes to the mortgage recourse obligation and other non-production revenue.

TABLE 16: NON-INTEREST EXPENSE

	Three Months Ended														Q1 2021 compared to Q4 2020						Q1 2021 compared to Q1 2020
	Mar 31,			Dec 31,			Sep 30,			Jun 30,		Mar 31,			Q1 2021 compared to Q4 2020						Q1 2021 compared to Q1 2020
(Dollars in thousands)	2021			2020			2020			2020		2020			$ Change			% Change			$ Change			% Change
Salaries and employee benefits:
Salaries	$	91,054		$	93,535		$	89,849		$	87,105	$	81,286		$	(2,481	)	(3	)	%	$	9,768		12		%
Commissions and incentive compensation	61,367			52,383			48,475			46,151		31,575			8,984			17			29,792			94
Benefits	28,389			25,198			25,718			20,900		23,901			3,191			13			4,488			19
Total salaries and employee benefits	180,809			171,116			164,042			154,156		136,762			9,693			6			44,047			32
Equipment	20,912			20,565			17,251			15,846		14,834			347			2			6,078			41
Operating lease equipment depreciation	10,771			9,938			9,425			9,292		9,260			833			8			1,511			16
Occupancy, net	19,996			19,687			15,830			16,893		17,547			309			2			2,449			14
Data processing	6,048			5,728			5,689			10,406		8,373			320			6			(2,325		)	(28	)
Advertising and marketing	8,546			9,850			7,880			7,704		10,862			(1,304		)	(13	)		(2,316		)	(21	)
Professional fees	7,587			6,530			6,488			7,687		6,721			1,057			16			866			13
Amortization of other intangible assets	2,007			2,634			2,701			2,820		2,863			(627		)	(24	)		(856		)	(30	)
FDIC insurance	6,558			7,016			6,772			7,081		4,135			(458		)	(7	)		2,423			59
OREO expense, net	(251		)	(114		)	(168		)	237		(876		)	(137		)	NM			625			(71	)
Other:
Commissions - 3rd party brokers	846			764			778			707		865			82			11			(19		)	(2	)
Postage	1,743			1,849			1,529			1,591		1,949			(106		)	(6	)		(206		)	(11	)
Miscellaneous	21,317			26,304			26,002			24,948		21,346			(4,987		)	(19	)		(29		)	—
Total other	23,906			28,917			28,309			27,246		24,160			(5,011		)	(17	)		(254		)	(1	)
Total Non-Interest Expense	$	286,889		$	281,867		$	264,219		$	259,368	$	234,641		$	5,022		2		%	$	52,248		22		%

NM - Not meaningful.

TABLE 17: SUPPLEMENTAL NON-GAAP FINANCIAL MEASURES/RATIOS

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

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

	Three Months Ended
	Mar 31,				Dec 31,				Sep 30,				Jun 30,				Mar 31,
(Dollars and shares in thousands)	2021				2020				2020				2020				2020
Reconciliation of Non-GAAP Net Interest Margin and Efficiency Ratio:
(A) Interest Income (GAAP)	$	305,469			$	307,981			$	311,156			$	329,816			$	344,067
Taxable-equivalent adjustment:
- Loans	384				324				481				576				860
- Liquidity Management Assets	500				530				546				538				551
- Other Earning Assets	—				3				1				3				2
(B) Interest Income (non-GAAP)	$	306,353			$	308,838			$	312,184			$	330,933			$	345,480
(C) Interest Expense (GAAP)	$	43,574			$	48,584			$	55,220			$	66,685			$	82,624
(D) Net Interest Income (GAAP) (A minus C)	$	261,895			$	259,397			$	255,936			$	263,131			$	261,443
(E) Net Interest Income (non-GAAP) (B minus C)	$	262,779			$	260,254			$	256,964			$	264,248			$	262,856
Net interest margin (GAAP)	2.53			%	2.53			%	2.56			%	2.73			%	3.12			%
Net interest margin, fully taxable-equivalent (non-GAAP)	2.54			%	2.54			%	2.57			%	2.74			%	3.14			%
(F) Non-interest income	$	186,506			$	158,361			$	170,593			$	161,993			$	113,242
(G) Gains (losses) on investment securities, net	1,154				1,214				411				808				(4,359		)
(H) Non-interest expense	286,889				281,867				264,219				259,368				234,641
Efficiency ratio (H/(D+F-G))	64.15			%	67.67			%	62.01			%	61.13			%	61.90			%
Efficiency ratio (non-GAAP) (H/(E+F-G))	64.02			%	67.53			%	61.86			%	60.97			%	61.67			%

Reconciliation of Non-GAAP Tangible Common Equity Ratio:
Total shareholders’ equity (GAAP)	$	4,252,511			$	4,115,995			$	4,074,089			$	3,990,218			$	3,700,393
Less: Non-convertible preferred stock (GAAP)	(412,500		)		(412,500		)		(412,500		)		(412,500		)		(125,000		)
Less: Intangible assets (GAAP)	(680,052		)		(681,747		)		(683,314		)		(685,581		)		(687,626		)
(I) Total tangible common shareholders’ equity (non-GAAP)	$	3,159,959			$	3,021,748			$	2,978,275			$	2,892,137			$	2,887,767
(J) Total assets (GAAP)	$	45,682,202			$	45,080,768			$	43,731,718			$	43,540,017			$	38,799,847
Less: Intangible assets (GAAP)	(680,052		)		(681,747		)		(683,314		)		(685,581		)		(687,626		)
(K) Total tangible assets (non-GAAP)	$	45,002,150			$	44,399,021			$	43,048,404			$	42,854,436			$	38,112,221
Common equity to assets ratio (GAAP) (L/J)	8.4			%	8.2			%	8.4			%	8.2			%	9.2			%
Tangible common equity ratio (non-GAAP) (I/K)	7.0			%	6.8			%	6.9			%	6.7			%	7.6			%

	Three Months Ended
	Mar 31,				Dec 31,				Sep 30,				Jun 30,				Mar 31,
(Dollars and shares in thousands)	2021				2020				2020				2020				2020
Reconciliation of Non-GAAP Tangible Book Value per Common Share:
Total shareholders’ equity	$	4,252,511			$	4,115,995			$	4,074,089			$	3,990,218			$	3,700,393
Less: Preferred stock	(412,500		)		(412,500		)		(412,500		)		(412,500		)		(125,000		)
(L) Total common equity	$	3,840,011			$	3,703,495			$	3,661,589			$	3,577,718			$	3,575,393
(M) Actual common shares outstanding	57,023				56,770				57,602				57,574				57,545
Book value per common share (L/M)	$	67.34			$	65.24			$	63.57			$	62.14			$	62.13
Tangible book value per common share (non-GAAP) (I/M)	$	55.42			$	53.23			$	51.70			$	50.23			$	50.18

Reconciliation of Non-GAAP Return on Average Tangible Common Equity:
(N) Net income applicable to common shares	$	146,157			$	94,213			$	97,029			$	19,609			$	60,762
Add: Intangible asset amortization	2,007				2,634				2,701				2,820				2,863
Less: Tax effect of intangible asset amortization	(522		)		(656		)		(589		)		(832		)		(799		)
After-tax intangible asset amortization	1,485				1,978				2,112				1,988				2,064
(O) Tangible net income applicable to common shares (non-GAAP)	$	147,642			$	96,191			$	99,141			$	21,597			$	62,826
Total average shareholders' equity	$	4,164,890			$	4,050,286			$	4,034,902			$	3,908,846			$	3,710,169
Less: Average preferred stock	(412,500		)		(412,500		)		(412,500		)		(273,489		)		(125,000		)
(P) Total average common shareholders' equity	$	3,752,390			$	3,637,786			$	3,622,402			$	3,635,357			$	3,585,169
Less: Average intangible assets	(680,805		)		(682,290		)		(684,717		)		(686,526		)		(690,777		)
(Q) Total average tangible common shareholders’ equity (non-GAAP)	$	3,071,585			$	2,955,496			$	2,937,685			$	2,948,831			$	2,894,392
Return on average common equity, annualized (N/P)	15.80			%	10.30			%	10.66			%	2.17			%	6.82			%
Return on average tangible common equity, annualized (non-GAAP) (O/Q)	19.49			%	12.95			%	13.43			%	2.95			%	8.73			%

Reconciliation of Non-GAAP Pre-Tax, Pre-Provision Income:
Income before taxes	$	206,859			$	134,711			$	137,284			$	30,703			$	87,083
Add: Provision for credit losses	(45,347		)		1,180				25,026				135,053				52,961
Pre-tax income, excluding provision for credit losses (non-GAAP)	$	161,512			$	135,891			$	162,310			$	165,756			$	140,044

WINTRUST SUBSIDIARIES AND LOCATIONS

Wintrust is a financial holding company whose common stock is traded on the Nasdaq Global Select Market (Nasdaq: WTFC). Its 15 community bank subsidiaries are: Lake Forest Bank & Trust Company, N.A., Hinsdale Bank & Trust Company, N.A., Wintrust Bank, N.A., in Chicago, Libertyville Bank & Trust Company, N.A., Barrington Bank & Trust Company, N.A., Crystal Lake Bank & Trust Company, N.A., Northbrook Bank & Trust Company, N.A., Schaumburg Bank & Trust Company, N.A., Village Bank & Trust, N.A., in Arlington Heights, Beverly Bank & Trust Company, N.A. in Chicago, Wheaton Bank & Trust Company, N.A., State Bank of The Lakes, N.A., in Antioch, Old Plank Trail Community Bank, N.A. in New Lenox, St. Charles Bank & Trust Company, N.A. and Town Bank, N.A., in Hartland, Wisconsin.

In addition to the locations noted above, the banks also operate facilities in Illinois in Addison, Algonquin, Aurora, Bloomingdale, Bolingbrook, Buffalo Grove, Burbank, Cary, Clarendon Hills, Crete, Countryside, Darien, Deerfield, Des Plaines, Downers Grove, Elgin, Elk Grove Village, Elmhurst, Evanston, Evergreen Park, Frankfort, Geneva, Glen Ellyn, Glencoe, Glenview, Gurnee, Grayslake, Hanover Park, Highland Park, Highwood, Hoffman Estates, Homer Glen, Itasca, Joliet, Lake Bluff, Lake Villa, Lansing, Lemont, Lindenhurst, Lynwood, Markham, Maywood, McHenry, Mokena, Mount Prospect, Mundelein, Naperville, North Chicago, Northfield, Norridge, Oak Lawn, Oak Brook, Orland Park, Palatine, Park Ridge, Prospect Heights, Ravinia, Riverside, Rolling Meadows, Round Lake Beach, Shorewood, Skokie, South Holland, Spring Grove, Steger, Stone Park, Vernon Hills, Wauconda, Waukegan, Western Springs, Willowbrook, Wilmette, Winnetka and Wood Dale, and in Wisconsin in Albany, Burlington, Clinton, Darlington, Delafield, Delavan, Elm Grove, Genoa City, Kenosha, Lake Geneva, Madison, Menomonee Falls, Milwaukee, Monroe, Pewaukee, Racine, Sharon, Wales, Walworth and Wind Lake, and in Dyer, Indiana and in Naples, Florida.

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

FIRST Insurance Funding and Wintrust Life Finance, each a division of Lake Forest Bank & Trust Company, N.A., serve commercial and life insurance loan customers, respectively, throughout the United States.
First Insurance Funding of Canada serves commercial insurance loan customers throughout Canada.
Tricom, Inc. of Milwaukee provides high-yielding, short-term accounts receivable financing and value-added out-sourced administrative services, such as data processing of payrolls, billing and cash management services, to temporary staffing service clients located throughout the United States.
Wintrust Mortgage, a division of Barrington Bank & Trust Company, N.A., engages primarily in the origination and purchase of residential mortgages for sale into the secondary market through origination offices located throughout the United States. Loans are also originated nationwide through relationships with wholesale and correspondent offices.
Wintrust Investments, LLC is a broker-dealer providing a full range of private client and brokerage services to clients and correspondent banks located primarily in the Midwest.
Great Lakes Advisors LLC provides money management services and advisory services to individual accounts.
The Chicago Trust Company, N.A., a trust subsidiary, allows Wintrust to service customers’ trust and investment needs at each banking location.
Wintrust Asset Finance offers direct leasing opportunities.
CDEC provides Qualified Intermediary services (as defined by U.S. Treasury regulations) for taxpayers seeking to structure tax-deferred like-kind exchanges under Internal Revenue Code Section 1031.

FORWARD-LOOKING STATEMENTS

This document contains forward-looking statements within the meaning of federal securities laws. Forward-looking information can be identified through the use of words such as “intend,” “plan,” “project,” “expect,” “anticipate,” “believe,” “estimate,” “contemplate,” “possible,” “will,” “may,” “should,” “would” and “could.” Forward-looking statements and information are not historical facts, are premised on many factors and assumptions, and represent only management’s expectations, estimates and projections regarding future events. Similarly, these statements are not guarantees of future performance and involve certain risks and uncertainties that are difficult to predict and which may include, but are not limited to, those listed below and the Risk Factors discussed under Item 1A of the Company’s 2020 Annual Report on Form 10-K and in any of the Company’s subsequent SEC filings. The Company intends such forward-looking statements to be covered by the safe harbor provisions for forward-looking statements contained in the Private Securities Litigation Reform Act of 1995, and is including this statement for purposes of invoking these safe harbor provisions. Such forward-looking statements may be deemed to include, among other things, statements relating to the Company’s future financial performance, the performance of its loan portfolio, the expected amount of future credit reserves and charge-offs, delinquency trends, growth plans, regulatory developments, securities that the Company may offer from time to time, and management’s long-term performance goals, as well as statements relating to the anticipated effects on financial condition and results of operations from expected developments or events, the Company’s business and growth strategies, including future acquisitions of banks, specialty finance or wealth management businesses, internal growth and plans to form additional de novo banks or branch offices. Actual results could differ materially from those addressed in the forward-looking statements as a result of numerous factors, including the following:

the severity, magnitude and duration of the COVID-19 pandemic and the direct and indirect impact of such pandemic, as well as responses to the pandemic by the government, businesses and consumers, on our operations and personnel, commercial activity and demand across our business and our customers’ businesses;
the disruption of global, national, state and local economies associated with the COVID-19 pandemic, which could affect the Company’s liquidity and capital positions, impair the ability of our borrowers to repay outstanding loans, impair collateral values and further increase our allowance for credit losses;
the impact of the COVID-19 pandemic on our financial results, including possible lost revenue and increased expenses (including the cost of capital), as well as possible goodwill impairment charges;
economic conditions that affect the economy, housing prices, the job market and other factors that may adversely affect the Company’s liquidity and the performance of its loan portfolios, particularly in the markets in which it operates;
negative effects suffered by us or our customers resulting from changes in U.S. trade policies;
the extent of defaults and losses on the Company’s loan portfolio, which may require further increases in its allowance for credit losses;
estimates of fair value of certain of the Company’s assets and liabilities, which could change in value significantly from period to period;
the financial success and economic viability of the borrowers of our commercial loans;
commercial real estate market conditions in the Chicago metropolitan area and southern Wisconsin;
the extent of commercial and consumer delinquencies and declines in real estate values, which may require further increases in the Company’s allowance for credit losses;
inaccurate assumptions in our analytical and forecasting models used to manage our loan portfolio;
changes in the level and volatility of interest rates, the capital markets and other market indices (including developments and volatility arising from or related to the COVID-19 pandemic) that may affect, among other things, the Company’s liquidity and the value of its assets and liabilities;
a prolonged period of near zero interest rates or potentially negative interest rates, either broadly or for some types of instruments, which may affect the Company’s net interest income and net interest margin, and which could materially adversely affect the Company’s profitability;
competitive pressures in the financial services business which may affect the pricing of the Company’s loan and deposit products as well as its services (including wealth management services), which may result in loss of market share and reduced income from deposits, loans, advisory fees and income from other products;
failure to identify and complete favorable acquisitions in the future or unexpected difficulties or developments related to the integration of the Company’s recent or future acquisitions;
unexpected difficulties and losses related to FDIC-assisted acquisitions;
harm to the Company’s reputation;
any negative perception of the Company’s financial strength;
ability of the Company to raise additional capital on acceptable terms when needed;
disruption in capital markets, which may lower fair values for the Company’s investment portfolio;
ability of the Company to use technology to provide products and services that will satisfy customer demands and create efficiencies in operations and to manage risks associated therewith;
failure or breaches of our security systems or infrastructure, or those of third parties;
security breaches, including denial of service attacks, hacking, social engineering attacks, malware intrusion or data corruption attempts and identity theft;
adverse effects on our information technology systems resulting from failures, human error or cyberattacks;
adverse effects of failures by our vendors to provide agreed upon services in the manner and at the cost agreed, particularly our information technology vendors;
increased costs as a result of protecting our customers from the impact of stolen debit card information;
accuracy and completeness of information the Company receives about customers and counterparties to make credit decisions;
ability of the Company to attract and retain senior management experienced in the banking and financial services industries;
environmental liability risk associated with lending activities;
the impact of any claims or legal actions to which the Company is subject, including any effect on our reputation;
losses incurred in connection with repurchases and indemnification payments related to mortgages and increases in reserves associated therewith;
the loss of customers as a result of technological changes allowing consumers to complete their financial transactions without the use of a bank;
the soundness of other financial institutions;
the expenses and delayed returns inherent in opening new branches and de novo banks;
liabilities, potential customer loss or reputational harm related to closings of existing branches;
examinations and challenges by tax authorities, and any unanticipated impact of the Tax Act;
changes in accounting standards, rules and interpretations, and the impact on the Company’s financial statements;
the ability of the Company to receive dividends from its subsidiaries;
uncertainty about the discontinued use of LIBOR and transition to an alternative rate;
a decrease in the Company’s capital ratios, including as a result of declines in the value of its loan portfolios, or otherwise;
legislative or regulatory changes, particularly changes in regulation of financial services companies and/or the products and services offered by financial services companies, including those changes that are in response to the COVID-19 pandemic, including without limitation the CARES Act, the Economic Aid to Hard-Hit Small Businesses, Nonprofits and Venues Act, and the rules and regulations that may be promulgated thereunder;
a lowering of our credit rating;
changes in U.S. monetary policy and changes to the Federal Reserve’s balance sheet, including changes in response to the COVID-19 pandemic or otherwise;
regulatory restrictions upon our ability to market our products to consumers and limitations on our ability to profitably operate our mortgage business;
increased costs of compliance, heightened regulatory capital requirements and other risks associated with changes in regulation and the regulatory environment;
the impact of heightened capital requirements;
increases in the Company’s FDIC insurance premiums, or the collection of special assessments by the FDIC;
delinquencies or fraud with respect to the Company’s premium finance business;
credit downgrades among commercial and life insurance providers that could negatively affect the value of collateral securing the Company’s premium finance loans;
the Company’s ability to comply with covenants under its credit facility; and
fluctuations in the stock market, which may have an adverse impact on the Company’s wealth management business and brokerage operation.

Therefore, there can be no assurances that future actual results will correspond to these forward-looking statements. The reader is cautioned not to place undue reliance on any forward-looking statement made by the Company. Any such statement speaks only as of the date the statement was made or as of such date that may be referenced within the statement. The Company undertakes no obligation to update any forward-looking statement to reflect the impact of circumstances or events after the date of the press release. Persons are advised, however, to consult further disclosures management makes on related subjects in its reports filed with the Securities and Exchange Commission and in its press releases.

CONFERENCE CALL, WEBCAST AND REPLAY

The Company will hold a conference call on Tuesday, April 20, 2021 at 10:00 a.m. (Central Time) regarding first quarter 2021 results. Individuals interested in listening should call (877) 363-5049 and enter Conference ID #3477928. A simultaneous audio-only webcast and replay of the conference call as well as an accompanying slide presentation may be accessed via the Company’s website at https://www.wintrust.com, Investor Relations, Investor News and Events, Presentations & Conference Calls. The text of the first quarter 2021 earnings press release will be available on the home page of the Company’s website at https://www.wintrust.com and at the Investor Relations, Investor News and Events, Press Releases link on its website.

Wintrust Financial Corporation Reports Record First Quarter 2021 Net Income of $153.1 million

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