Wintrust Financial Corporation Reports Record First Quarter 2025 Net Income

Wintrust Financial Corporation

ROSEMONT, Ill., April 21, 2025 (GLOBE NEWSWIRE) -- Wintrust Financial Corporation (“Wintrust”, “the Company”, “we” or “our”) (Nasdaq: WTFC) announced record quarterly net income of $189.0 million, or $2.69 per diluted common share, for the first quarter of 2025, compared to net income of $185.4 million, or $2.63 per diluted common share in the fourth quarter of 2024. Pre-tax, pre-provision income (non-GAAP) totaled a record $277.0 million, compared to $270.1 million for the fourth quarter of 2024.

Timothy S. Crane, President and Chief Executive Officer, commented, “Building on our record results in 2024, we are pleased with our strong start to the year. Our balanced business model supported disciplined loan growth, which was funded by robust deposit growth in the first quarter of 2025.”

Additionally, Mr. Crane noted, “Net interest margin in the first quarter increased by five basis points to 3.56% compared to the fourth quarter of 2024. The improvement in net interest margin was primarily attributed to decreased funding costs. The higher net interest margin and balance sheet growth supported record net interest income levels in the first quarter of 2025.”

Highlights of the first quarter of 2025:
Comparative information to the fourth quarter of 2024, unless otherwise noted

Total loans increased by $653 million, or 6% annualized. Total deposits increased by approximately $1.1 billion, or 8% annualized. Total assets increased by $1.0 billion, or 6% annualized. Net interest income increased to $526.5 million in the first quarter of 2025, compared to $525.1 million in the fourth quarter of 2024, supported by improvement in net interest margin and balance sheet growth.

Net interest margin increased to 3.54% (3.56% on a fully taxable-equivalent basis, non-GAAP) during the first quarter of 2025. Non-interest income and non-interest expense were relatively stable in the first quarter of 2025. Notable impacts were:

Net gains on investment securities totaled $3.2 million. Macatawa Bank acquisition-related costs were $2.7 million. Provision for credit losses totaled $24.0 million in the first quarter of 2025, as compared to a provision for credit losses of $17.0 million in the fourth quarter of 2024. Net charge-offs totaled $12.6 million, or 11 basis points of average total loans on an annualized basis, in the first quarter of 2025 compared to $15.9 million, or 13 basis points of average total loans on an annualized basis, in the fourth quarter of 2024.

Mr. Crane noted, “The Company exhibited disciplined and consistent loan growth, as loans increased by $653 million compared to the prior quarter, or 6% on an annualized basis. Loan pipelines are strong and we remain prudent in our review of credit opportunities, ensuring our loan growth adheres to our conservative credit standards. Strong deposit growth of $1.1 billion, or 8% on an annualized basis, in the first quarter of 2025 outpaced loan growth, which resulted in our loans-to-deposits ratio ending the quarter at 90.9%. Non-interest bearing deposits totaled $11.2 billion and comprised 21% of total deposits at the end of the first quarter of 2025. We continue to leverage our enviable market positioning to generate deposits, grow loans and expand our franchise value.”

Story Continues

Commenting on credit quality, Mr. Crane stated, “Prudent credit management, involving in-depth reviews of the portfolio, has led to positive outcomes by proactively identifying and resolving problem credits in a timely fashion. We continue to be conservative, diversified, and maintain our consistently strong credit standards. We believe the Company’s reserves are appropriate and we remain committed to maintaining credit quality as evidenced by our improved net charge-offs, stable levels of non-performing loans and our core loan allowance for credit losses of 1.37%.”

In summary, Mr. Crane concluded, “Overall, we are proud of our first quarter results and believe we are well-positioned to continue our strong momentum as we navigate the macroeconomic uncertainty in 2025. The first quarter results highlighted the quality of our core deposit franchise and multifaceted nature of our business model, which uniquely positions us to be successful. Anticipated solid loan growth in the second quarter, combined with a stable net interest margin should result in higher levels of net interest income in the second quarter of 2025. Increasing our long-term franchise value and net interest income, coupled with disciplined expense control and maintaining our conservative credit standards, remain our focus in 2025.”

The graphs shown on pages 3-7 illustrate certain financial highlights of the first quarter of 2025 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/cdbdc506-1b5a-4776-ae2e-e0b14106e712

SUMMARY OF RESULTS:

BALANCE SHEET

Total assets increased $1.0 billion in the first quarter of 2025 as compared to the fourth quarter of 2024. Total loans increased by $653.4 million as compared to the fourth quarter of 2024. The increase in loans was primarily driven by growth in the commercial and premium finance life insurance loan portfolios.

Total liabilities increased by $734.2 million in the first quarter of 2025 as compared to the fourth quarter of 2024, driven by a $1.1 billion increase in total deposits. Robust organic deposit growth in the first quarter of 2025 was driven by our diverse deposit product offerings. Non-interest bearing deposits as a percentage of total deposits were 21% at March 31, 2025, relatively stable compared to recent quarters. The Company's loans-to-deposits ratio ended the quarter at 90.9%.

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

NET INTEREST INCOME

For the first quarter of 2025, net interest income totaled $526.5 million, an increase of $1.3 million as compared to the fourth quarter of 2024, primarily due to improvement in net interest margin and growth in the balance sheet, partially offset by two fewer calendar days in the quarter.

Net interest margin increased to 3.54% (3.56% on a fully taxable-equivalent basis, non-GAAP) during the first quarter of 2025, up five basis points compared to the fourth quarter of 2024. The yield on earning assets declined 11 basis points during the first quarter of 2025 primarily due to a 15 basis point decrease in loan yields. The net free funds contribution declined six basis points compared to the fourth quarter of 2024. These declines were more than offset by a 22 basis point reduction in funding cost, primarily due to a 23 basis point decline in the rate paid on interest-bearing deposits, compared to the fourth quarter of 2024.

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

ASSET QUALITY

The allowance for credit losses totaled $448.4 million as of March 31, 2025, an increase from $437.1 million as of December 31, 2024. A provision for credit losses totaling $24.0 million was recorded for the first quarter of 2025 as compared to $17.0 million recorded in the fourth quarter of 2024. The higher provision for credit losses recognized in the first quarter of 2025 is primarily attributable to impacts related to the macroeconomic outlook. Future economic performance remains uncertain, thus downside risks to the baseline scenario, including widening credit spreads and lower valuations in financial markets, were considered to derive a qualitative addition to the provision for the first quarter of 2025. For more information regarding the allowance for credit losses and 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 Company is required to estimate expected credit losses over the life of the Company’s financial assets as of the reporting date. There can be no assurances, however, that future losses will not significantly exceed the amounts provided for, thereby affecting future results of operations. A summary of the allowance for credit losses calculated for the loan components in each portfolio as of March 31, 2025, December 31, 2024, and September 30, 2024 is shown on Table 11 of this report.

Net charge-offs totaled $12.6 million in the first quarter of 2025, a decrease of $3.3 million as compared to $15.9 million of net charge-offs in the fourth quarter of 2024. Net charge-offs as a percentage of average total loans were 11 basis points in the first quarter of 2025 on an annualized basis, compared to 13 basis points on an annualized basis in the fourth quarter of 2024. For more information regarding net charge-offs, see Table 9 in this report.

The Company’s delinquency rates remain low and manageable. For more information regarding past due loans, see Table 12 in this report.

Non-performing assets and non-performing loans have remained relatively stable compared to prior quarters. Non-performing assets totaled $195.0 million and comprised 0.30% of total assets as of March 31, 2025, as compared to $193.9 million, or 0.30% of total assets, as of December 31, 2024. Non-performing loans totaled $172.4 million and comprised 0.35% of total loans at March 31, 2025, as compared to $170.8 million and 0.36% of total loans at December 31, 2024. For more information regarding non-performing assets, see Table 13 in this report.

NON-INTEREST INCOME

Non-interest income totaled $116.6 million in the first quarter of 2025, increasing $3.2 million, as compared to $113.5 million in the fourth quarter of 2024.

Wealth management revenue decreased by $4.7 million in the first quarter of 2025, as compared to the fourth quarter of 2024. Revenue in the first quarter of 2025 was impacted by the transition of systems and support for brokerage and certain private client business to a new third party in the current quarter, as well as lower assets under management due to lower market valuations. The reduction in revenue was driven by anticipated slowdown in activity from the transition, market conditions, and certain offsets to expenses. Wealth management revenue is comprised of the trust and asset management revenue of Wintrust Private 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 totaling $20.5 million in the first quarter of 2025 was essentially unchanged compared to the fourth quarter of 2024. For more information regarding mortgage banking revenue, see Table 15 in this report.

The Company recognized $19.4 million in service charges on deposit accounts in the first quarter of 2025, as compared to $18.9 million in the fourth quarter of 2024. The $0.5 million increase in the first quarter of 2025 was primarily due to increased commercial account fees.

The Company recognized $3.2 million in net gains on investment securities in the first quarter of 2025 as compared to $2.8 million in net losses in the fourth quarter of 2024. The net gains in the first quarter of 2025 were primarily the result of unrealized gains on the Company’s equity investment securities with a readily determinable fair value.

For more information regarding non-interest income, see Table 14 in this report.

NON-INTEREST EXPENSE

Non-interest expenses totaled $366.1 million in the first quarter of 2025, decreasing $2.4 million as compared to $368.5 million in the fourth quarter of 2024.

Salaries and employee benefits expense decreased by $0.6 million in the first quarter of 2025 as compared to the fourth quarter of 2024. This was primarily driven by decreased commissions and incentives compensation expense related to lower mortgage originations and wealth management revenue in the quarter partially offset by higher salaries expense which can be attributed to annual merit increases taking effect in the first quarter of the year.

Advertising and marketing expenses in the first quarter of 2025 totaled $12.3 million, which was a $0.8 million decrease as compared to the fourth quarter of 2024. The reduction in the first quarter is primarily due to timing of marketing campaigns, sponsorship arrangements and other investments.

Professional fees expense totaled $9.0 million in the first quarter of 2025, resulting in a decrease of $2.3 million as compared to the fourth quarter of 2024. The decrease in the current quarter relates primarily to decreased fees on consulting services. Professional fees include legal, audit, and tax fees, external loan review costs, consulting arrangements and normal regulatory exam assessments.

Travel and entertainment expense totaled $5.3 million in the first quarter of 2025 which decreased $2.9 million as compared to the fourth quarter of 2024. The decrease is primarily due to seasonal corporate events that occur during the fourth quarter.

The Macatawa Bank acquisition related costs were $2.7 million in the first quarter of 2025, primarily driven by consulting expenses, employee retention and severance costs, and contracted resource costs.

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

INCOME TAXES

The Company recorded income tax expense of $64.0 million in the first quarter compared to $67.7 million in the fourth quarter of 2024. The effective tax rates were 25.30% in the first quarter of 2025 compared to 26.76% in the fourth quarter of 2024. The effective tax rates were partially impacted by the tax effects related to share-based compensation, which fluctuate based on the Company’s stock price and timing of employee stock option exercises and vesting of other share-based awards. The Company recorded net excess tax benefits of $3.7 million in the first quarter of 2025, compared to excess tax benefits of $50,000 in the fourth quarter of 2024 related to share-based compensation.

BUSINESS SUMMARY

Community Banking

Through community banking, 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 2025, community banking increased its commercial, commercial real estate and residential real estate loan portfolios.

Mortgage banking revenue was $20.5 million for both the first quarter of 2025, and the fourth quarter of 2024. See Table 15 for more detail. Service charges on deposit accounts totaled $19.4 million in the first quarter of 2025 as compared to $18.9 million in the fourth quarter of 2024. The Company’s gross commercial and commercial real estate loan pipelines remained solid as of March 31, 2025 indicating momentum for expected continued loan growth in the second quarter of 2025.

Specialty Finance

Through specialty finance, 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 portfolios were $4.8 billion during the first quarter of 2025. Average balances increased by $213.4 million, as compared to the fourth quarter of 2024. The Company’s leasing divisions’ portfolio balances increased in the first quarter of 2025, with capital leases, loans, and equipment on operating leases of $2.7 billion, $1.1 billion, and $280.5 million as of March 31, 2025 respectively, as compared to $2.5 billion, $1.1 billion, and $278.3 million as of December 31, 2024, respectively. Revenues from the Company’s out-sourced administrative services business were $1.4 million in the first quarter of 2025, which was relatively stable compared to the fourth quarter of 2024.

Wealth Management

Through wealth management, the Company offers a full range of wealth management services, including trust and investment services, tax-deferred like-kind exchange services, asset management, and securities brokerage services. See “Items Impacting Comparative Results,” regarding the sale of the Company’s Retirement Benefits Advisors (“RBA”) division during the first quarter of 2024. Wealth management revenue totaled $34.0 million in the first quarter of 2025, down slightly as compared to the fourth quarter of 2024. At March 31, 2025, the Company’s wealth management subsidiaries had approximately $51.1 billion of assets under administration, which included $8.4 billion of assets owned by the Company and its subsidiary banks.

ITEMS IMPACTING COMPARATIVE FINANCIAL RESULTS

Business Combination

On August 1, 2024, the Company completed its previously announced acquisition of Macatawa, the parent company of Macatawa Bank. In conjunction with the completed acquisition, the Company issued approximately 4.7 million shares of common stock. Macatawa operates 26 full-service branches located throughout communities in Kent, Ottawa and northern Allegan counties in the state of Michigan. Macatawa offers a full range of banking, retail and commercial lending, wealth management and ecommerce services to individuals, businesses and governmental entities. As of August 1, 2024, Macatawa had fair values of approximately $2.9 billion in assets, $2.3 billion in deposits and $1.3 billion in loans. As of March 31, 2025, the Company recorded goodwill of approximately $142.1 million on the purchase.

Division Sale

In the first quarter of 2024, the Company sold its RBA division and recorded a net gain of approximately $19.3 million ($20.0 million in other non-interest income from the sale, offset by $0.7 million in commissions/incentive compensation expense).

WINTRUST FINANCIAL CORPORATION Key Operating Measures

Wintrust’s key operating measures and growth rates for the first quarter of 2025, as compared to the fourth quarter of 2024 (sequential quarter) and first quarter of 2024 (linked quarter), are shown in the table below:

% or (1) basis point (bp) change  from
4th Quarter
2024  % or basis point (bp) change from
1st Quarter
2024 Three Months Ended  (Dollars in thousands, except per share data)  Mar 31, 2025  Dec 31, 2024  Mar 31, 2024  Net income  $ 189,039   $ 185,362   $ 187,294  2  %  1  % Pre-tax income, excluding provision for credit losses (non-GAAP) (2)   277,018    270,060    271,629  3    2  Net income per common share – Diluted   2.69    2.63    2.89  2    (7 )  Cash dividends declared per common share   0.50    0.45    0.45  11    11  Net revenue (3)   643,108    638,599    604,774  1    6  Net interest income   526,474    525,148    464,194      13  Net interest margin   3.54 %   3.49 %   3.57 % 5  bps  (3 ) bps Net interest margin – fully taxable-equivalent (non-GAAP) (2)   3.56    3.51    3.59  5    (3 )  Net overhead ratio (4)   1.58    1.60    1.39  (2 )   19  Return on average assets   1.20    1.16    1.35  4    (15 )  Return on average common equity   12.21    11.82    14.42  39    (221 )  Return on average tangible common equity (non-GAAP) (2)   14.72    14.29    16.75  43    (203 )  At end of period  Total assets  $ 65,870,066   $ 64,879,668   $ 57,576,933  6  %  14  % Total loans (5)   48,708,390    48,055,037    43,230,706  6    13  Total deposits   53,570,038    52,512,349    46,448,858  8    15  Total shareholders’ equity   6,600,537    6,344,297    5,436,400  16    21

(1) Period-end balance sheet percentage changes are annualized. (2) See Table 17: Supplemental Non-GAAP Financial Measures/Ratios 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, 2025  Dec 31, 2024  Sep 30, 2024  Jun 30, 2024  Mar 31, 2024 Selected Financial Condition Data (at end of period): Total assets  $ 65,870,066   $ 64,879,668   $ 63,788,424   $ 59,781,516   $ 57,576,933  Total loans (1)   48,708,390    48,055,037    47,067,447    44,675,531    43,230,706  Total deposits   53,570,038    52,512,349    51,404,966    48,049,026    46,448,858  Total shareholders’ equity   6,600,537    6,344,297    6,399,714    5,536,628    5,436,400  Selected Statements of Income Data:  Net interest income  $ 526,474   $ 525,148   $ 502,583   $ 470,610   $ 464,194  Net revenue (2)   643,108    638,599    615,730    591,757    604,774  Net income   189,039    185,362    170,001    152,388    187,294  Pre-tax income, excluding provision for credit losses (non-GAAP) (3)   277,018    270,060    255,043    251,404    271,629  Net income per common share – Basic   2.73    2.68    2.51    2.35    2.93  Net income per common share – Diluted   2.69    2.63    2.47    2.32    2.89  Cash dividends declared per common share   0.50    0.45    0.45    0.45    0.45  Selected Financial Ratios and Other Data:  Performance Ratios:  Net interest margin   3.54 %   3.49 %   3.49 %   3.50 %   3.57 % Net interest margin – fully taxable-equivalent (non-GAAP) (3)   3.56    3.51    3.51    3.52    3.59  Non-interest income to average assets   0.74    0.71    0.74    0.85    1.02  Non-interest expense to average assets   2.32    2.31    2.36    2.38    2.41  Net overhead ratio (4)   1.58    1.60    1.62    1.53    1.39  Return on average assets   1.20    1.16    1.11    1.07    1.35  Return on average common equity   12.21    11.82    11.63    11.61    14.42  Return on average tangible common equity (non-GAAP) (3)   14.72    14.29    13.92    13.49    16.75  Average total assets  $ 64,107,042   $ 63,594,105   $ 60,915,283   $ 57,493,184   $ 55,602,695  Average total shareholders’ equity   6,460,941    6,418,403    5,990,429    5,450,173    5,440,457  Average loans to average deposits ratio   92.3 %   91.9 %   93.8 %   95.1 %   94.5 % Period-end loans to deposits ratio   90.9    91.5    91.6    93.0    93.1  Common Share Data at end of period:  Market price per common share  $ 112.46   $ 124.71   $ 108.53   $ 98.56   $ 104.39  Book value per common share   92.47    89.21    90.06    82.97    81.38  Tangible book value per common share (non-GAAP) (3)   78.83    75.39    76.15    72.01    70.40  Common shares outstanding   66,919,325    66,495,227    66,481,543    61,760,139    61,736,715  Other Data at end of period:  Common equity to assets ratio   9.4 %   9.1 %   9.4 %   8.6 %   8.7 % Tangible common equity ratio (non-GAAP) (3)   8.1    7.8    8.1    7.5    7.6  Tier 1 leverage ratio (5)   9.6    9.4    9.6    9.3    9.4  Risk-based capital ratios:  Tier 1 capital ratio (5)   10.8    10.7    10.6    10.3    10.3  Common equity tier 1 capital ratio (5)   10.1    9.9    9.8    9.5    9.5  Total capital ratio (5)   12.5    12.3    12.2    12.1    12.2  Allowance for credit losses (6)  $ 448,387   $ 437,060   $ 436,193   $ 437,560   $ 427,504  Allowance for loan and unfunded lending-related commitment losses to total loans   0.92 %   0.91 %   0.93 %   0.98 %   0.99 % Number of:  Bank subsidiaries   16    16    16    15    15  Banking offices   208    205    203    177    176

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

WINTRUST FINANCIAL CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CONDITION

(Unaudited)    (Unaudited)  (Unaudited)  (Unaudited) Mar 31,  Dec 31,  Sep 30,  Jun 30,  Mar 31, (In thousands)   2025    2024    2024    2024    2024  Assets  Cash and due from banks  $ 616,216   $ 452,017   $ 725,465   $ 415,462   $ 379,825  Federal funds sold and securities purchased under resale agreements   63    6,519    5,663    62    61  Interest-bearing deposits with banks   4,238,237    4,409,753    3,648,117    2,824,314    2,131,077  Available-for-sale securities, at fair value   4,220,305    4,141,482    3,912,232    4,329,957    4,387,598  Held-to-maturity securities, at amortized cost   3,564,490    3,613,263    3,677,420    3,755,924    3,810,015  Trading account securities   —    4,072    3,472    4,134    2,184  Equity securities with readily determinable fair value   270,442    215,412    125,310    112,173    119,777  Federal Home Loan Bank and Federal Reserve Bank stock   281,893    281,407    266,908    256,495    224,657  Brokerage customer receivables   —    18,102    16,662    13,682    13,382  Mortgage loans held-for-sale, at fair value   316,804    331,261    461,067    411,851    339,884  Loans, net of unearned income   48,708,390    48,055,037    47,067,447    44,675,531    43,230,706  Allowance for loan losses   (378,207 )   (364,017 )   (360,279 )   (363,719 )   (348,612 ) Net loans   48,330,183    47,691,020    46,707,168    44,311,812    42,882,094  Premises, software and equipment, net   776,679    779,130    772,002    722,295    744,769  Lease investments, net   280,472    278,264    270,171    275,459    283,557  Accrued interest receivable and other assets   1,598,255    1,739,334    1,721,090    1,671,334    1,580,142  Trade date securities receivable   463,023    —    551,031    —    —  Goodwill   796,932    796,942    800,780    655,955    656,181  Other acquisition-related intangible assets   116,072    121,690    123,866    20,607    21,730  Total assets  $ 65,870,066   $ 64,879,668   $ 63,788,424   $ 59,781,516   $ 57,576,933  Liabilities and Shareholders’ Equity  Deposits:  Non-interest-bearing  $ 11,201,859   $ 11,410,018   $ 10,739,132   $ 10,031,440   $ 9,908,183  Interest-bearing   42,368,179    41,102,331    40,665,834    38,017,586    36,540,675  Total deposits   53,570,038    52,512,349    51,404,966    48,049,026    46,448,858  Federal Home Loan Bank advances   3,151,309    3,151,309    3,171,309    3,176,309    2,676,751  Other borrowings   529,269    534,803    647,043  ...  606,579    575,408  Subordinated notes   298,360    298,283    298,188    298,113    437,965  Junior subordinated debentures   253,566    253,566    253,566    253,566    253,566  Accrued interest payable and other liabilities   1,466,987    1,785,061    1,613,638    1,861,295    1,747,985  Total liabilities   59,269,529    58,535,371    57,388,710    54,244,888    52,140,533  Shareholders’ Equity:  Preferred stock   412,500    412,500    412,500    412,500    412,500  Common stock   67,007    66,560    66,546    61,825    61,798  Surplus   2,494,347    2,482,561    2,470,228    1,964,645    1,954,532  Treasury stock   (9,156 )   (6,153 )   (6,098 )   (5,760 )   (5,757 ) Retained earnings   4,045,854    3,897,164    3,748,715    3,615,616    3,498,475  Accumulated other comprehensive loss   (410,015 )   (508,335 )   (292,177 )   (512,198 )   (485,148 ) Total shareholders’ equity   6,600,537    6,344,297    6,399,714    5,536,628    5,436,400  Total liabilities and shareholders’ equity  $ 65,870,066   $ 64,879,668   $ 63,788,424   $ 59,781,516   $ 57,576,933

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

Three Months Ended (Dollars in thousands, except per share data) Mar 31,
2025  Dec 31,
2024  Sep 30,
2024  Jun 30,
2024  Mar 31,
2024 Interest income  Interest and fees on loans $ 768,362   $ 789,038   $ 794,163   $ 749,812   $ 710,341  Mortgage loans held-for-sale  4,246    5,623    6,233    5,434    4,146  Interest-bearing deposits with banks  36,766    46,256    32,608    19,731    16,658  Federal funds sold and securities purchased under resale agreements  179    53    277    17    19  Investment securities  72,016    67,066    69,592    69,779    69,678  Trading account securities  11    6    11    13    18  Federal Home Loan Bank and Federal Reserve Bank stock  5,307    5,157    5,451    4,974    4,478  Brokerage customer receivables  78    302    269    219    175  Total interest income  886,965    913,501    908,604    849,979    805,513  Interest expense  Interest on deposits  320,233    346,388    362,019    335,703    299,532  Interest on Federal Home Loan Bank advances  25,441    26,050    26,254    24,797    22,048  Interest on other borrowings  6,792    7,519    9,013    8,700    9,248  Interest on subordinated notes  3,714    3,733    3,712    5,185    5,487  Interest on junior subordinated debentures  4,311    4,663    5,023    4,984    5,004  Total interest expense  360,491    388,353    406,021    379,369    341,319  Net interest income  526,474    525,148    502,583    470,610    464,194  Provision for credit losses  23,963    16,979    22,334    40,061    21,673  Net interest income after provision for credit losses  502,511    508,169    480,249    430,549    442,521  Non-interest income  Wealth management  34,042    38,775    37,224    35,413    34,815  Mortgage banking  20,529    20,452    15,974    29,124    27,663  Service charges on deposit accounts  19,362    18,864    16,430    15,546    14,811  Gains (losses) on investment securities, net  3,196    (2,835 )   3,189    (4,282 )   1,326  Fees from covered call options  3,446    2,305    988    2,056    4,847  Trading (losses) gains, net  (64 )   (113 )   (130 )   70    677  Operating lease income, net  15,287    15,327    15,335    13,938    14,110  Other  20,836    20,676    24,137    29,282    42,331  Total non-interest income  116,634    113,451    113,147    121,147    140,580  Non-interest expense  Salaries and employee benefits  211,526    212,133    211,261    198,541    195,173  Software and equipment  34,717    34,258    31,574    29,231    27,731  Operating lease equipment  10,471    10,263    10,518    10,834    10,683  Occupancy, net  20,778    20,597    19,945    19,585    19,086  Data processing  11,274    10,957    9,984    9,503    9,292  Advertising and marketing  12,272    13,097    18,239    17,436    13,040  Professional fees  9,044    11,334    9,783    9,967    9,553  Amortization of other acquisition-related intangible assets  5,618    5,773    4,042    1,122    1,158  FDIC insurance  10,926    10,640    10,512    10,429    14,537  OREO expenses, net  643    397    (938 )   (259 )   392  Other  38,821    39,090    35,767    33,964    32,500  Total non-interest expense  366,090    368,539    360,687    340,353    333,145  Income before taxes  253,055    253,081    232,709    211,343    249,956  Income tax expense  64,016    67,719    62,708    58,955    62,662  Net income $ 189,039   $ 185,362   $ 170,001   $ 152,388   $ 187,294  Preferred stock dividends  6,991    6,991    6,991    6,991    6,991  Net income applicable to common shares $ 182,048   $ 178,371   $ 163,010   $ 145,397   $ 180,303  Net income per common share - Basic $ 2.73   $ 2.68   $ 2.51   $ 2.35   $ 2.93  Net income per common share - Diluted $ 2.69   $ 2.63   $ 2.47   $ 2.32   $ 2.89  Cash dividends declared per common share $ 0.50   $ 0.45   $ 0.45   $ 0.45   $ 0.45  Weighted average common shares outstanding  66,726    66,491    64,888    61,839    61,481  Dilutive potential common shares  923    1,233    1,053    926    928  Average common shares and dilutive common shares  67,649    67,724    65,941    62,765    62,409

TABLE 1: LOAN PORTFOLIO MIX AND GROWTH RATES

% Growth From (Dollars in thousands) Mar 31,
2025  Dec 31,
2024  Sep 30,
2024  Jun 30,
2024  Mar 31,
2024 Dec 31,
2024 (1)  Mar 31,
2024 Balance:  Mortgage loans held-for-sale, excluding early buy-out exercised loans guaranteed by U.S. government agencies $ 181,580   $ 189,774   $ 314,693   $ 281,103   $ 193,064  (18 )%  (6 )% Mortgage loans held-for-sale, early buy-out exercised loans guaranteed by U.S. government agencies  135,224    141,487    146,374    130,748    146,820  (18 )  (8 ) Total mortgage loans held-for-sale $ 316,804   $ 331,261   $ 461,067   $ 411,851   $ 339,884  (18 )%  (7 )%  Core loans:  Commercial  Commercial and industrial $ 6,871,206   $ 6,867,422   $ 6,774,683   $ 6,236,290   $ 6,117,004   %  12 % Asset-based lending  1,701,962    1,611,001    1,709,685    1,465,867    1,355,255  23   26  Municipal  798,646    826,653    827,125    747,357    721,526  (14 )  11  Leases  2,680,943    2,537,325    2,443,721    2,439,128    2,344,295  23   14  Commercial real estate  Residential construction  55,849    48,617    73,088    55,019    57,558  60   (3 ) Commercial construction  2,086,797    2,065,775    1,984,240    1,866,701    1,748,607  4   19  Land  306,235    319,689    346,362    338,831    344,149  (17 )  (11 ) Office  1,641,555    1,656,109    1,675,286    1,585,312    1,566,748  (4 )  5  Industrial  2,677,555    2,628,576    2,527,932    2,307,455    2,190,200  8   22  Retail  1,402,837    1,374,655    1,404,586    1,365,753    1,366,415  8   3  Multi-family  3,091,314    3,125,505    3,193,339    2,988,940    2,922,432  (4 )  6  Mixed use and other  1,652,759    1,685,018    1,588,584    1,439,186    1,437,328  (8 )  15  Home equity  455,683    445,028    427,043    356,313    340,349  10   34  Residential real estate  Residential real estate loans for investment  3,561,417    3,456,009    3,252,649    2,933,157    2,746,916  12   30  Residential mortgage loans, early buy-out eligible loans guaranteed by U.S. government agencies  86,952    114,985    92,355    88,503    90,911  (99 )  (4 ) Residential mortgage loans, early buy-out exercised loans guaranteed by U.S. government agencies  36,790    41,771    43,034    45,675    52,439  (48 )  (30 ) Total core loans $ 29,108,500   $ 28,804,138   $ 28,363,712   $ 26,259,487   $ 25,402,132  4 %  15 %  Niche loans:  Commercial  Franchise $ 1,262,555   $ 1,268,521   $ 1,191,686   $ 1,150,460   $ 1,122,302  (2 )%  12 % Mortgage warehouse lines of credit  1,019,543    893,854    750,462    593,519    403,245  57   NM Community Advantage - homeowners association  525,492    525,446    501,645    491,722    475,832     10  Insurance agency lending  1,070,979    1,044,329    1,048,686    1,030,119    964,022  10   11  Premium Finance receivables  U.S. property & casualty insurance  6,486,663    6,447,625    6,253,271    6,142,654    6,113,993  2   6  Canada property & casualty insurance  753,199    824,417    878,410    958,099    826,026  (35 )  (9 ) Life insurance  8,365,140    8,147,145    7,996,899    7,962,115    7,872,033  11   6  Consumer and other  116,319    99,562    82,676    87,356    51,121  68   NM Total niche loans $ 19,599,890   $ 19,250,899   $ 18,703,735   $ 18,416,044   $ 17,828,574  7 %  10 %  Total loans, net of unearned income $ 48,708,390   $ 48,055,037   $ 47,067,447   $ 44,675,531   $ 43,230,706  6 %  13 %

(1) Annualized.

TABLE 2: DEPOSIT PORTFOLIO MIX AND GROWTH RATES

% Growth From (Dollars in thousands) Mar 31,
2025  Dec 31,
2024  Sep 30,
2024  Jun 30,
2024  Mar 31,
2024 Dec 31,
2024 (1)  Mar 31, 2024 Balance:  Non-interest-bearing $ 11,201,859   $ 11,410,018   $ 10,739,132   $ 10,031,440   $ 9,908,183  (7 )%  13 % NOW and interest-bearing demand deposits  6,340,168    5,865,546    5,466,932    5,053,909    5,720,947  33   11  Wealth management deposits (2)  1,408,790    1,469,064    1,303,354    1,490,711    1,347,817  (17 )  5  Money market  18,074,733    17,975,191    17,713,726    16,320,017    15,617,717  2   16  Savings  6,576,251    6,372,499    6,183,249    5,882,179    5,959,774  13   10  Time certificates of deposit  9,968,237    9,420,031    9,998,573    9,270,770    7,894,420  24   26  Total deposits $ 53,570,038   $ 52,512,349   $ 51,404,966   $ 48,049,026   $ 46,448,858  8 %  15 % Mix:  Non-interest-bearing  21 %   22 %   21 %   21 %   21 %  NOW and interest-bearing demand deposits  12    11    11    11    12  Wealth management deposits (2)  3    3    3    3    3  Money market  34    34    34    34    34  Savings  12    12    12    12    13  Time certificates of deposit  18    18    19    19    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”), and trust and asset management customers of the Company.

TABLE 3: TIME CERTIFICATES OF DEPOSIT MATURITY/RE-PRICING ANALYSIS
As of March 31, 2025

(Dollars in thousands)  Total Time
Certificates of
Deposit  Weighted-Average
Rate of Maturing
Time Certificates
 of Deposit  1-3 months  $ 3,845,120   4.34 % 4-6 months   2,345,184   3.81  7-9 months   2,694,739   3.72  10-12 months   711,206   3.62  13-18 months   210,063   3.03  19-24 months   87,336   2.72  24+ months   74,589   2.47  Total  $ 9,968,237   3.94 %

TABLE 4: QUARTERLY AVERAGE BALANCES

Average Balance for three months ended, Mar 31,  Dec 31,  Sep 30,  Jun 30,  Mar 31, (In thousands)   2025    2024    2024    2024    2024  Interest-bearing deposits with banks, securities purchased under resale agreements and cash equivalents (1)  $ 3,520,048   $ 3,934,016   $ 2,413,728   $ 1,485,481   $ 1,254,332  Investment securities (2)   8,409,735    8,090,271    8,276,576    8,203,764    8,349,796  FHLB and FRB stock   281,702    271,825    263,707    253,614    230,648  Liquidity management assets (3)  $ 12,211,485   $ 12,296,112   $ 10,954,011   $ 9,942,859   $ 9,834,776  Other earning assets (3)(4)   13,140    20,528    17,542    15,257    15,081  Mortgage loans held-for-sale   286,710    378,707    376,251    347,236    290,275  Loans, net of unearned income (3)(5)   47,833,380    47,153,014    45,920,586    43,819,354    42,129,893  Total earning assets (3)  $ 60,344,715   $ 59,848,361   $ 57,268,390   $ 54,124,706   $ 52,270,025  Allowance for loan and investment security losses   (375,371 )   (367,238 )   (383,736 )   (360,504 )   (361,734 ) Cash and due from banks   476,423    470,033    467,333    434,916    450,267  Other assets   3,661,275    3,642,949    3,563,296    3,294,066    3,244,137  Total assets  $ 64,107,042   $ 63,594,105   $ 60,915,283   $ 57,493,184   $ 55,602,695   NOW and interest-bearing demand deposits  $ 6,046,189   $ 5,601,672   $ 5,174,673   $ 4,985,306   $ 5,680,265  Wealth management deposits   1,574,480    1,430,163    1,362,747    1,531,865    1,510,203  Money market accounts   17,581,141    17,579,395    16,436,111    15,272,126    14,474,492  Savings accounts   6,479,444    6,288,727    6,096,746    5,878,844    5,792,118  Time deposits   9,406,126    9,702,948    9,598,109    8,546,172    7,148,456  Interest-bearing deposits  $ 41,087,380   $ 40,602,905   $ 38,668,386   $ 36,214,313   $ 34,605,534  Federal Home Loan Bank advances   3,151,309    3,160,658    3,178,973    3,096,920    2,728,849  Other borrowings   582,139    577,786    622,792    587,262    627,711  Subordinated notes   298,306    298,225    298,135    410,331    437,893  Junior subordinated debentures   253,566    253,566    253,566    253,566    253,566  Total interest-bearing liabilities  $ 45,372,700   $ 44,893,140   $ 43,021,852   $ 40,562,392   $ 38,653,553  Non-interest-bearing deposits   10,732,156    10,718,738    10,271,613    9,879,134    9,972,646  Other liabilities   1,541,245    1,563,824    1,631,389    1,601,485    1,536,039  Equity   6,460,941    6,418,403    5,990,429    5,450,173    5,440,457  Total liabilities and shareholders’ equity  $ 64,107,042   $ 63,594,105   $ 60,915,283   $ 57,493,184   $ 55,602,695   Net free funds/contribution (6)  $ 14,972,015   $ 14,955,221   $ 14,246,538   $ 13,562,314   $ 13,616,472

(1) Includes interest-bearing deposits from banks and securities purchased under resale agreements with original maturities of greater than three months. Cash equivalents include federal funds sold and securities purchased under resale agreements with original maturities of three months or less.
(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 Table 17: Supplemental Non-GAAP Financial Measures/Ratios 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)   2025    2024    2024    2024    2024  Interest income:  Interest-bearing deposits with banks, securities purchased under resale agreements and cash equivalents  $ 36,945   $ 46,308   $ 32,885   $ 19,748   $ 16,677  Investment securities   72,706    67,783    70,260    70,346    70,228  FHLB and FRB stock   5,307    5,157    5,451    4,974    4,478  Liquidity management assets (1)  $ 114,958   $ 119,248   $ 108,596   $ 95,068   $ 91,383  Other earning assets (1)   92    310    282    235    198  Mortgage loans held-for-sale   4,246    5,623    6,233    5,434    4,146  Loans, net of unearned income (1)   770,568    791,390    796,637    752,117    712,587  Total interest income  $ 889,864   $ 916,571   $ 911,748   $ 852,854   $ 808,314   Interest expense:  NOW and interest-bearing demand deposits  $ 33,600   $ 31,695   $ 30,971   $ 32,719   $ 34,896  Wealth management deposits   8,606    9,412    10,158    10,294    10,461  Money market accounts   146,374    159,945    167,382    155,100    137,984  Savings accounts   35,923    38,402    42,892    41,063    39,071  Time deposits   95,730    106,934    110,616    96,527    77,120  Interest-bearing deposits  $ 320,233   $ 346,388   $ 362,019   $ 335,703   $ 299,532  Federal Home Loan Bank advances   25,441    26,050    26,254    24,797    22,048  Other borrowings   6,792    7,519    9,013    8,700    9,248  Subordinated notes   3,714    3,733    3,712    5,185    5,487  Junior subordinated debentures   4,311    4,663    5,023    4,984    5,004  Total interest expense  $ 360,491   $ 388,353   $ 406,021   $ 379,369   $ 341,319   Less: Fully taxable-equivalent adjustment   (2,899 )   (3,070 )   (3,144 )   (2,875 )   (2,801 ) Net interest income (GAAP) (2)    526,474    525,148    502,583    470,610    464,194  Fully taxable-equivalent adjustment   2,899    3,070    3,144    2,875    2,801  Net interest income, fully taxable-equivalent (non-GAAP) (2)   $ 529,373   $ 528,218   $ 505,727   $ 473,485   $ 466,995

(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 Table 17: Supplemental Non-GAAP Financial Measures/Ratios for additional information on this performance measure/ratio.

TABLE 6: QUARTERLY NET INTEREST MARGIN

Net Interest Margin for three months ended, Mar 31,
2025  Dec 31,
2024  Sep 30,
2024  Jun 30,
2024  Mar 31,
2024 Yield earned on:  Interest-bearing deposits with banks, securities purchased under resale agreements and cash equivalents  4.26 %  4.68 %  5.42 %  5.35 %  5.35 % Investment securities  3.51   3.33   3.38   3.45   3.38  FHLB and FRB stock  7.64   7.55   8.22   7.89   7.81  Liquidity management assets  3.82 %  3.86 %  3.94 %  3.85 %  3.74 % Other earning assets  2.84   6.01   6.38   6.23   5.25  Mortgage loans held-for-sale  6.01   5.91   6.59   6.29   5.74  Loans, net of unearned income  6.53   6.68   6.90   6.90   6.80  Total earning assets  5.98 %  6.09 %  6.33 %  6.34 %  6.22 %  Rate paid on:  NOW and interest-bearing demand deposits  2.25 %  2.25 %  2.38 %  2.64 %  2.47 % Wealth management deposits  2.22   2.62   2.97   2.70   2.79  Money market accounts  3.38   3.62   4.05   4.08   3.83  Savings accounts  2.25   2.43   2.80   2.81   2.71  Time deposits  4.13   4.38   4.58   4.54   4.34  Interest-bearing deposits  3.16 %  3.39 %  3.72 %  3.73 %  3.48 % Federal Home Loan Bank advances  3.27   3.28   3.29   3.22   3.25  Other borrowings  4.73   5.18   5.76   5.96   5.92  Subordinated notes  5.05   4.98   4.95   5.08   5.04  Junior subordinated debentures  6.90   7.32   7.88   7.91   7.94  Total interest-bearing liabilities  3.22 %  3.44 %  3.75 %  3.76 %  3.55 %  Interest rate spread (1)(2)  2.76 %  2.65 %  2.58 %  2.58 %  2.67 % Less: Fully taxable-equivalent adjustment  (0.02 )  (0.02 )  (0.02 )  (0.02 )  (0.02 ) Net free funds/contribution (3)  0.80   0.86   0.93   0.94   0.92  Net interest margin (GAAP) (2)  3.54 %  3.49 %  3.49 %  3.50 %  3.57 % Fully taxable-equivalent adjustment  0.02   0.02   0.02   0.02   0.02  Net interest margin, fully taxable-equivalent (non-GAAP) (2)  3.56 %  3.51 %  3.51 %  3.52 %  3.59 %

(1) Interest rate spread is the difference between the yield earned on earning assets and the rate paid on interest-bearing liabilities.
(2) See Table 17: Supplemental Non-GAAP Financial Measures/Ratios 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 and decreases of 100 and 200 basis points as compared to projected net interest income in a scenario with no assumed rate changes. 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  -200 Basis
Points Mar 31, 2025  (1.8 )%  (0.6 )%  (0.2 )%  (1.2 )% Dec 31, 2024  (1.6 )  (0.6 )  (0.3 )  (1.5 ) Sep 30, 2024  1.2   1.1   0.4   (0.9 ) Jun 30, 2024  1.5   1.0   0.6   (0.0 ) Mar 31, 2024  1.9   1.4   1.5   1.6

Ramp Scenario +200 Basis
Points  +100 Basis
Points  -100 Basis
Points   -200 Basis
Points Mar 31, 2025 0.2 %  0.2 %  (0.1 )%  (0.5 )% Dec 31, 2024 (0.2 )  (0.0 )  0.0   (0.3 ) Sep 30, 2024 1.6   1.2   0.7   0.5  Jun 30, 2024 1.2   1.0   0.9   1.0  Mar 31, 2024 0.8   0.6   1.3   2.0

As shown above, the magnitude of potential changes in net interest income in various interest rate scenarios has continued to remain relatively neutral. As the current interest rate cycle progressed, management took action to reposition its sensitivity to interest rates. To this end, management has executed various derivative instruments including collars and receive fixed swaps to hedge variable rate loan exposures and originated a higher percentage of its loan originations in longer-term fixed-rate loans. The Company will continue to monitor current and projected interest rates and may execute additional derivatives to mitigate potential fluctuations in the net interest margin in future periods.

TABLE 8: MATURITIES AND SENSITIVITIES TO CHANGES IN INTEREST RATES

Loans repricing or contractual maturity period As of March 31, 2025 (In thousands) One year or
less   From one to
five years   From five to fifteen years   After fifteen years   Total  Commercial  Fixed rate $ 405,736   $ 3,600,171   $ 2,122,563   $ 20,444   $ 6,148,914  Variable rate  9,781,709    703    —    —    9,782,412  Total commercial $ 10,187,445   $ 3,600,874   $ 2,122,563   $ 20,444   $ 15,931,326  Commercial real estate  Fixed rate $ 658,413   $ 2,762,221   $ 365,181   $ 63,593   $ 3,849,408  Variable rate  9,054,583    10,843    67    —    9,065,493  Total commercial real estate $ 9,712,996   $ 2,773,064   $ 365,248   $ 63,593   $ 12,914,901  Home equity  Fixed rate $ 8,881   $ 838   $ —   $ 17   $ 9,736  Variable rate  445,947    —    —    —    445,947  Total home equity $ 454,828   $ 838   $ —   $ 17   $ 455,683  Residential real estate  Fixed rate $ 13,336   $ 4,473   $ 74,883   $ 1,055,143   $ 1,147,835  Variable rate  97,815    623,879    1,815,630    —    2,537,324  Total residential real estate $ 111,151   $ 628,352   $ 1,890,513   $ 1,055,143   $ 3,685,159  Premium finance receivables - property & casualty  Fixed rate $ 7,135,963   $ 103,899   $ —   $ —   $ 7,239,862  Variable rate  —    —    —    —    —  Total premium finance receivables - property & casualty $ 7,135,963   $ 103,899   $ —   $ —   $ 7,239,862  Premium finance receivables - life insurance  Fixed rate $ 350,802   $ 207,832   $ 4,000   $ 4,248   $ 566,882  Variable rate  7,798,258    —    —    —    7,798,258  Total premium finance receivables - life insurance $ 8,149,060   $ 207,832   $ 4,000   $ 4,248   $ 8,365,140  Consumer and other  Fixed rate $ 44,731   $ 7,937   $ 883   $ 914   $ 54,465  Variable rate  61,854    —    —    —    61,854  Total consumer and other $ 106,585   $ 7,937   $ 883   $ 914   $ 116,319   Total per category  Fixed rate $ 8,617,862   $ 6,687,371   $ 2,567,510   $ 1,144,359   $ 19,017,102  Variable rate  27,240,166    635,425    1,815,697    —    29,691,288  Total loans, net of unearned income $ 35,858,028   $ 7,322,796   $ 4,383,207   $ 1,144,359   $ 48,708,390  Less: Existing cash flow hedging derivatives (1)  (6,700,000 )  Total loans repricing or maturing in one year or less, adjusted for cash flow hedging activity $ 29,158,028   Variable Rate Loan Pricing by Index:  SOFR tenors (2)         $ 18,328,835  12- month CMT (3)          6,722,305  Prime          3,420,624  Fed Funds          819,437  Other U.S. Treasury tenors          190,187  Other          209,900  Total variable rate         $ 29,691,288

(1) Excludes cash flow hedges with future effective starting dates.
(2) SOFR - Secured Overnight Financing Rate.
(3) CMT - Constant Maturity Treasury Rate.

Graph available at the following link: http://ml.globenewswire.com/Resource/Download/bebf97a7-5d4d-430d-a436-ae832412a4db

Source: Bloomberg

As noted in the table on the previous page, the majority of the Company’s portfolio is tied to SOFR and CMT 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 variable rate loans of $15.4 billion tied to one-month SOFR and $6.7 billion tied to twelve-month CMT. The above chart shows:

Basis Point (bp) Change in 1-month
SOFR  12- month CMT  Prime  First Quarter 2025  (1 ) bps (13 ) bps   bps Fourth Quarter 2024  (52 )  18   (50 )  Third Quarter 2024  (49 )  (111 )  (50 )  Second Quarter 2024  1   6  First Quarter 2024  (2 )  24

TABLE 9: ALLOWANCE FOR CREDIT LOSSES

Three Months Ended Mar 31,  Dec 31,  Sep 30,  Jun 30,  Mar 31, (Dollars in thousands)   2025    2024    2024    2024    2024  Allowance for credit losses at beginning of period  $ 437,060   $ 436,193   $ 437,560   $ 427,504   $ 427,612  Provision for credit losses - Other   23,963    16,979    6,787    40,061    21,673  Provision for credit losses - Day 1 on non-PCD assets acquired during the period   —    —    15,547    —    —  Initial allowance for credit losses recognized on PCD assets acquired during the period   —    —    3,004    —    —  Other adjustments   4    (187 )   30    (19 )   (31 ) Charge-offs:  Commercial   9,722    5,090    22,975    9,584    11,215  Commercial real estate   454    1,037    95    15,526    5,469  Home equity   —    —    —    —    74  Residential real estate   —    114    —    23    38  Premium finance receivables - property & casualty   7,114    13,301    7,790    9,486    6,938  Premium finance receivables - life insurance   12    —    4    —    —  Consumer and other   147    189    154    137    107  Total charge-offs   17,449    19,731    31,018    34,756    23,841  Recoveries:  Commercial   929    775    649    950    479  Commercial real estate   12    172    30    90    31  Home equity   216    194    101    35    29  Residential real estate   136        5    8    2  Premium finance receivables - property & casualty   3,487    2,646    3,436    3,658    1,519  Premium finance receivables - life insurance   —    —    41    5    8  Consumer and other   29    19    21    24    23  Total recoveries   4,809    3,806    4,283    4,770    2,091  Net charge-offs   (12,640 )   (15,925 )   (26,735 )   (29,986 )   (21,750 ) Allowance for credit losses at period end  $ 448,387   $ 437,060   $ 436,193   $ 437,560   $ 427,504   Annualized net charge-offs (recoveries) by category as a percentage of its own respective category’s average: Commercial   0.23 %   0.11 %   0.61 %   0.25 %   0.33 % Commercial real estate   0.01    0.03    0.00    0.53    0.19  Home equity   (0.20 )   (0.18 )   (0.10 )   (0.04 )   0.05  Residential real estate   (0.02 )   0.01    0.00    0.00    0.01  Premium finance receivables - property & casualty   0.20    0.59    0.24    0.33    0.32  Premium finance receivables - life insurance   0.00    —    (0.00 )   (0.00 )   (0.00 ) Consumer and other   0.45    0.63    0.63    0.56    0.42  Total loans, net of unearned income   0.11 %   0.13 %   0.23 %   0.28 %   0.21 %  Loans at period end  $ 48,708,390   $ 48,055,037   $ 47,067,447   $ 44,675,531   $ 43,230,706  Allowance for loan losses as a percentage of loans at period end   0.78 %   0.76 %   0.77 %   0.81 %   0.81 % Allowance for loan and unfunded lending-related commitment losses as a percentage of loans at period end   0.92    0.91    0.93    0.98    0.99

PCD - Purchase Credit Deteriorated

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)   2025    2024    2024    2024    2024  Provision for loan losses - Other  $ 26,826   $ 19,852   $ 6,782   $ 45,111   $ 26,159  Provision for credit losses - Day 1 on non-PCD assets acquired during the period   —    —    15,547    —    —  Provision for unfunded lending-related commitments losses - Other   (2,852 )   (2,851 )   17    (5,212 )   (4,468 ) Provision for held-to-maturity securities losses   (11 )   (22 )   (12 )   162    (18 ) Provision for credit losses  $ 23,963   $ 16,979   $ 22,334   $ 40,061   $ 21,673   Allowance for loan losses  $ 378,207   $ 364,017   $ 360,279   $ 363,719   $ 348,612  Allowance for unfunded lending-related commitments losses   69,734    72,586    75,435    73,350    78,563  Allowance for loan losses and unfunded lending-related commitments losses   447,941    436,603    435,714    437,069    427,175  Allowance for held-to-maturity securities losses   446    457    479    491    329  Allowance for credit losses  $ 448,387   $ 437,060   $ 436,193   $ 437,560   $ 427,504

PCD - Purchase Credit Deteriorated

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, 2025, December 31, 2024 and September 30, 2024.

As of Mar 31, 2025 As of Dec 31, 2024 As of Sep 30, 2024 (Dollars in thousands) Recorded
Investment  Calculated
Allowance  % of its
category’s balance Recorded
Investment  Calculated
Allowance  % of its
category’s balance Recorded
Investment  Calculated
Allowance  % of its
category’s balance Commercial:  Commercial, industrial and other $ 15,931,326  $ 201,183  1.26 % $ 15,574,551  $ 175,837  1.13 % $ 15,247,693  $ 171,598  1.13 % Commercial real estate:  Construction and development  2,448,881   71,388  2.92   2,434,081   87,236  3.58   2,403,690   97,949  4.07  Non-construction  10,466,020   138,622  1.32   10,469,863   135,620  1.30   10,389,727   133,195  1.28  Total commercial real estate $ 12,914,901  $ 210,010  1.63 % $ 12,903,944  $ 222,856  1.73 % $ 12,793,417  $ 231,144  1.81 % Total commercial and commercial real estate $ 28,846,227  $ 411,193  1.43 % $ 28,478,495  $ 398,693  1.40 % $ 28,041,110  $ 402,742  1.44 % Home equity  455,683   9,139  2.01   445,028   8,943  2.01   427,043   8,823  2.07  Residential real estate  3,685,159   10,652  0.29   3,612,765   10,335  0.29   3,388,038   9,745  0.29  Premium finance receivables  Property and casualty insurance  7,239,862   15,310  0.21   7,272,042   17,111  0.24   7,131,681   13,045  0.18  Life insurance  8,365,140   729  0.01   8,147,145   709  0.01   7,996,899   698  0.01  Consumer and other  116,319   918  0.79   99,562   812  0.82   82,676   661  0.80  Total loans, net of unearned income $ 48,708,390  $ 447,941  0.92 % $ 48,055,037  $ 436,603  0.91 % $ 47,067,447  $ 435,714  0.93 %  Total core loans (1) $ 29,108,500  $ 397,664  1.37 % $ 28,804,138  $ 392,319  1.36 % $ 28,363,712  $ 396,394  1.40 % Total niche loans (1)  19,599,890   50,277  0.26   19,250,899   44,284  0.23   18,703,735   39,320  0.21

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

TABLE 12: LOAN PORTFOLIO AGING

(In thousands)  Mar 31, 2025  Dec 31, 2024  Sep 30, 2024  Jun 30, 2024  Mar 31, 2024 Loan Balances:  Commercial  Nonaccrual  $ 70,560   $ 73,490   $ 63,826   $ 51,087   $ 31,740  90+ days and still accruing   46    104    20    304    27  60-89 days past due   15,243    54,844    32,560    16,485    30,248  30-59 days past due   97,397    92,551    46,057    36,358    77,715  Current   15,748,080    15,353,562    15,105,230    14,050,228    13,363,751  Total commercial  $ 15,931,326   $ 15,574,551   $ 15,247,693   $ 14,154,462   $ 13,503,481  Commercial real estate  Nonaccrual  $ 26,187   $ 21,042   $ 42,071   $ 48,289   $ 39,262  90+ days and still accruing   —    —    225    —    —  60-89 days past due   6,995    10,521    13,439    6,555    16,713  30-59 days past due   83,653    30,766    48,346    38,065    32,998  Current   12,798,066    12,841,615    12,689,336    11,854,288    11,544,464  Total commercial real estate  $ 12,914,901   $ 12,903,944   $ 12,793,417   $ 11,947,197   $ 11,633,437  Home equity  Nonaccrual  $ 2,070   $ 1,117   $ 1,122   $ 1,100   $ 838  90+ days and still accruing   —    —    —    —    —  60-89 days past due   984    1,233    1,035    275    212  30-59 days past due   3,403    2,148    2,580    1,229    1,617  Current   449,226    440,530    422,306    353,709    337,682  Total home equity  $ 455,683   $ 445,028   $ 427,043   $ 356,313   $ 340,349  Residential real estate  Early buy-out loans guaranteed by U.S. government agencies (1)  $ 123,742   $ 156,756   $ 135,389   $ 134,178   $ 143,350  Nonaccrual   22,522    23,762    17,959    18,198    17,901  90+ days and still accruing   —    —    —    —    —  60-89 days past due   1,351    5,708    6,364    1,977    —  30-59 days past due   38,943    18,917    2,160    130    24,523  Current   3,498,601    3,407,622    3,226,166    2,912,852    2,704,492  Total residential real estate  $ 3,685,159   $ 3,612,765   $ 3,388,038   $ 3,067,335   $ 2,890,266  Premium finance receivables - property & casualty  Nonaccrual  $ 29,846   $ 28,797   $ 36,079   $ 32,722   $ 32,648  90+ days and still accruing   18,081    16,031    18,235    22,427    25,877  60-89 days past due   19,717    19,042    18,740    29,925    15,274  30-59 days past due   39,459    68,219    30,204    45,927    59,729  Current   7,132,759    7,139,953    7,028,423    6,969,752    6,806,491  Total Premium finance receivables - property & casualty  $ 7,239,862   $ 7,272,042   $ 7,131,681   $ 7,100,753   $ 6,940,019  Premium finance receivables - life insurance  Nonaccrual  $ —   $ 6,431   $ —   $ —   $ —  90+ days and still accruing   2,962    —    —    —    —  60-89 days past due   10,587    72,963    10,902    4,118    32,482  30-59 days past due   29,924    36,405    74,432    17,693    100,137  Current   8,321,667    8,031,346    7,911,565    7,940,304    7,739,414  Total Premium finance receivables - life insurance  $ 8,365,140   $ 8,147,145   $ 7,996,899   $ 7,962,115   $ 7,872,033  Consumer and other  Nonaccrual  $ 18   $ 2   $ 2   $ 3   $ 19  90+ days and still accruing   98    47    148    121    47  60-89 days past due   162    59    22    81    16  30-59 days past due   542    882    264    366    210  Current   115,499    98,572    82,240    86,785    50,829  Total consumer and other  $ 116,319   $ 99,562   $ 82,676   $ 87,356   $ 51,121  Total loans, net of unearned income  Early buy-out loans guaranteed by U.S. government agencies (1)  $ 123,742   $ 156,756   $ 135,389   $ 134,178   $ 143,350  Nonaccrual   151,203    154,641    161,059    151,399    122,408  90+ days and still accruing   21,187    16,182    18,628    22,852    25,951  60-89 days past due   55,039    164,370    83,062    59,416    94,945  30-59 days past due   293,321    249,888    204,043    139,768    296,929  Current   48,063,898    47,313,200    46,465,266    44,167,918    42,547,123  Total loans, net of unearned income  $ 48,708,390   $ 48,055,037   $ 47,067,447   $ 44,675,531   $ 43,230,706

(1) Early buy-out loans are insured or guaranteed by the Federal Housing Administration or the U.S. Department of Veterans Affairs, subject to indemnifications and insurance limits for certain loans.

TABLE 13:NON-PERFORMING ASSETS(1)

Mar 31,  Dec 31,  Sep 30,  Jun 30,  Mar 31, (Dollars in thousands)  2025    2024    2024    2024    2024  Loans past due greater than 90 days and still accruing:  Commercial $ 46   $ 104   $ 20   $ 304   $ 27  Commercial real estate  —    —    225    —    —  Home equity  —    —    —    —    —  Residential real estate  —    —    —    —    —  Premium finance receivables - property & casualty  18,081    16,031    18,235    22,427    25,877  Premium finance receivables - life insurance  2,962    —    —    —    —  Consumer and other  98    47    148    121    47  Total loans past due greater than 90 days and still accruing  21,187    16,182    18,628    22,852    25,951  Non-accrual loans:  Commercial  70,560    73,490    63,826    51,087    31,740  Commercial real estate  26,187    21,042    42,071    48,289    39,262  Home equity  2,070    1,117    1,122    1,100    838  Residential real estate  22,522    23,762    17,959    18,198    17,901  Premium finance receivables - property & casualty  29,846    28,797    36,079    32,722    32,648  Premium finance receivables - life insurance  —    6,431    —    —    —  Consumer and other  18    2    2    3    19  Total non-accrual loans  151,203    154,641    161,059    151,399    122,408  Total non-performing loans:  Commercial  70,606    73,594    63,846    51,391    31,767  Commercial real estate  26,187    21,042    42,296    48,289    39,262  Home equity  2,070    1,117    1,122    1,100    838  Residential real estate  22,522    23,762    17,959    18,198    17,901  Premium finance receivables - property & casualty  47,927    44,828    54,314    55,149    58,525  Premium finance receivables - life insurance  2,962    6,431    —    —    —  Consumer and other  116    49    150    124    66  Total non-performing loans $ 172,390   $ 170,823   $ 179,687   $ 174,251   $ 148,359  Other real estate owned  22,625    23,116    13,682    19,731    14,538  Total non-performing assets $ 195,015   $ 193,939   $ 193,369   $ 193,982   $ 162,897  Total non-performing loans by category as a percent of its own respective category’s period-end balance:  Commercial  0.44 %   0.47 %   0.42 %   0.36 %   0.24 % Commercial real estate  0.20    0.16    0.33    0.40    0.34  Home equity  0.45    0.25    0.26    0.31    0.25  Residential real estate  0.61    0.66    0.53    0.59    0.62  Premium finance receivables - property & casualty  0.66    0.62    0.76    0.78    0.84  Premium finance receivables - life insurance  0.04    0.08    —    —    —  Consumer and other  0.10    0.05    0.18    0.14    0.13  Total loans, net of unearned income  0.35 %   0.36 %   0.38 %   0.39 %   0.34 % Total non-performing assets as a percentage of total assets  0.30 %   0.30 %   0.30 %   0.32 %   0.28 % Allowance for loan losses and unfunded lending-related commitments losses as a percentage of non-accrual loans  296.25 %   282.33 %   270.53 %   288.69 %   348.98 %

(1) Excludes early buy-out loans guaranteed by U.S. government agencies. Early buy-out loans are insured or guaranteed by the Federal Housing Administration or the U.S. Department of Veterans Affairs, subject to indemnifications and insurance limits for certain loans.

Non-performing Loans Rollforward, excluding early buy-out loans guaranteed by U.S. government agencies

Three Months Ended Mar 31,  Dec 31,  Sep 30,  Jun 30,  Mar 31, (In thousands)  2025    2024    2024    2024    2024   Balance at beginning of period $ 170,823   $ 179,687   $ 174,251   $ 148,359   $ 139,030  Additions from becoming non-performing in the respective period  27,721    30,931    42,335    54,376    23,142  Additions from assets acquired in the respective period  —    —    189    —    —  Return to performing status  (1,207 )   (1,108 )   (362 )   (912 )   (490 ) Payments received  (15,965 )   (12,219 )   (10,894 )   (9,611 )   (8,336 ) Transfer to OREO and other repossessed assets  —    (17,897 )   (3,680 )   (6,945 )   (1,381 ) Charge-offs, net  (8,600 )   (5,612 )   (21,211 )   (7,673 )   (14,810 ) Net change for premium finance receivables  (382 )   (2,959 )   (941 )   (3,343 )   11,204  Balance at end of period $ 172,390   $ 170,823   $ 179,687   $ 174,251   $ 148,359

Other Real Estate Owned

Three Months Ended Mar 31,  Dec 31,  Sep 30,  Jun 30,  Mar 31, (In thousands)  2025    2024    2024    2024    2024  Balance at beginning of period $ 23,116   $ 13,682   $ 19,731   $ 14,538   $ 13,309  Disposals/resolved  —    (8,545 )   (9,729 )   (1,752 )   —  Transfers in at fair value, less costs to sell  —    17,979    3,680    6,945    1,436  Fair value adjustments  (491 )   —    —    —    (207 ) Balance at end of period $ 22,625   $ 23,116   $ 13,682   $ 19,731   $ 14,538   Period End Mar 31,  Dec 31,  Sep 30,  Jun 30,  Mar 31, Balance by Property Type:  2025    2024    2024    2024    2024  Residential real estate $ —   $ —   $ —   $ 161   $ 1,146  Commercial real estate  22,625    23,116    13,682    19,570    13,392  Total $ 22,625   $ 23,116   $ 13,682   $ 19,731   $ 14,538

TABLE 14: NON-INTEREST INCOME

Three Months Ended Q1 2025 compared to 
Q4 2024  Q1 2025 compared to 
Q1 2024 Mar 31,  Dec 31,  Sep 30,  Jun 30,  Mar 31, (Dollars in thousands)  2025    2024    2024    2024    2024  $ Change  % Change $ Change  % Change Brokerage $ 4,757   $ 5,328   $ 6,139   $ 5,588   $ 5,556  $ (571 )  (11 )% $ (799 )  (14 )% Trust and asset management  29,285    33,447    31,085    29,825    29,259   (4,162 )  (12 )  26  Total wealth management  34,042    38,775    37,224    35,413    34,815   (4,733 )  (12 )  (773 )  (2 ) Mortgage banking  20,529    20,452    15,974    29,124    27,663   77      (7,134 )  (26 ) Service charges on deposit accounts  19,362    18,864    16,430    15,546    14,811   498   3   4,551   31  Gains (losses) on investment securities, net  3,196    (2,835 )   3,189    (4,282 )   1,326   6,031   NM  1,870   NM Fees from covered call options  3,446    2,305    988    2,056    4,847   1,141   50   (1,401 )  (29 ) Trading (losses) gains, net  (64 )   (113 )   (130 )   70    677   49   (43 )  (741 )  NM Operating lease income, net  15,287    15,327    15,335    13,938    14,110   (40 )  (0 )  1,177   8  Other:  Interest rate swap fees  2,269    3,360    2,914    3,392    2,828   (1,091 )  (32 )  (559 )  (20 ) BOLI  796    1,236    1,517    1,351    1,651   (440 )  (36 )  (855 )  (52 ) Administrative services  1,393    1,347    1,450    1,322    1,217   46   3   176   14  Foreign currency remeasurement (losses) gains  (183 )   (682 )   696    (145 )   (1,171 )  499   (73 )  988   (84 ) Changes in fair value on EBOs and loans held-for-investment  383    129    518    604    (439 )  254   NM  822   NM Early pay-offs of capital leases  768    514    532    393    430   254   49   338   79  Miscellaneous  15,410    14,772    16,510    22,365    37,815   638   4   (22,405 )  (59 ) Total Other  20,836    20,676    24,137    29,282    42,331   160   1   (21,495 )  (51 ) Total Non-Interest Income $ 116,634   $ 113,451   $ 113,147   $ 121,147   $ 140,580  $ 3,183   3 % $ (23,946 )  (17 )%

NM - Not meaningful. BOLI- Bank-owned life insurance. EBO- Early buy-out.

TABLE 15: MORTGAGE BANKING

Three Months Ended (Dollars in thousands) Mar 31,
2025  Dec 31,
2024  Sep 30,
2024  Jun 30,
2024  Mar 31,
2024 Originations:  Retail originations $ 348,468   $ 483,424   $ 527,408   $ 544,394   $ 331,504  Veterans First originations  111,985    176,914    239,369    177,792    144,109  Total originations for sale (A) $ 460,453   $ 660,338   $ 766,777   $ 722,186   $ 475,613  Originations for investment  217,177    355,119    218,984    275,331    169,246  Total originations $ 677,630   $ 1,015,457   $ 985,761   $ 997,517   $ 644,859  As a percentage of originations for sale:  Retail originations  76 %   73 %   69 %   75 %   70 % Veterans First originations  24    27    31    25    30  Purchases  77 %   65 %   72 %   83 %   75 % Refinances  23    35    28    17    25  Production Margin:  Production revenue (B) (1) $ 9,941   $ 6,993   $ 13,113   $ 14,990   $ 13,435  Total originations for sale (A) $ 460,453   $ 660,338   $ 766,777   $ 722,186   $ 475,613  Add: Current period end mandatory interest rate lock commitments to fund originations for sale (2)  197,297    103,946    272,072    222,738    207,775  Less: Prior period end mandatory interest rate lock commitments to fund originations for sale (2)  103,946    272,072    222,738    207,775    119,624  Total mortgage production volume (C) $ 553,804   $ 492,212   $ 816,111   $ 737,149   $ 563,764  Production margin (B / C)  1.80 %   1.42 %   1.61 %   2.03 %   2.38 % Mortgage Servicing:  Loans serviced for others (D) $ 12,402,352   $ 12,400,913   $ 12,253,361   $ 12,211,027   $ 12,051,392  Mortgage Servicing Rights (“MSR”), at fair value (E)  196,307    203,788    186,308    204,610    201,044  Percentage of MSRs to loans serviced for others (E / D)  1.58 %   1.64 %   1.52 %   1.68 %   1.67 % Servicing income $ 10,611   $ 10,731   $ 10,809   $ 10,586   $ 10,498  MSR Fair Value Asset Activity  MSR - FV at Beginning of Period $ 203,788   $ 186,308   $ 204,610   $ 201,044   $ 192,456  MSR - current period capitalization  4,669    10,010    6,357    8,223    5,379  MSR - collection of expected cash flows - paydowns  (1,590 )   (1,463 )   (1,598 )   (1,504 )   (1,444 ) MSR - collection of expected cash flows - payoffs and repurchases  (3,046 )   (4,315 )   (5,730 )   (4,030 )   (2,942 ) MSR - changes in fair value model assumptions  (7,514 )   13,248    (17,331 )   877    7,595  MSR Fair Value at end of period $ 196,307   $ 203,788   $ 186,308   $ 204,610   $ 201,044  Summary of Mortgage Banking Revenue:  Operational:  Production revenue (1) $ 9,941   $ 6,993   $ 13,113   $ 14,990   $ 13,435  MSR - Current period capitalization  4,669    10,010    6,357    8,223    5,379  MSR - Collection of expected cash flows - paydowns  (1,590 )   (1,463 )   (1,598 )   (1,504 )   (1,444 ) MSR - Collection of expected cash flows - pay offs  (3,046 )   (4,315 )   (5,730 )   (4,030 )   (2,942 ) Servicing Income  10,611    10,731    10,809    10,586    10,498  Other Revenue  (172 )   (51 )   (67 )   112    (91 ) Total operational mortgage banking revenue $ 20,413   $ 21,905   $ 22,884   $ 28,377   $ 24,835  Fair Value:  MSR - changes in fair value model assumptions $ (7,514 )  $ 13,248   $ (17,331 )  $ 877   $ 7,595  Gain (loss) on derivative contract held as an economic hedge, net  4,897    (11,452 )   6,892    (772 )   (2,577 ) Changes in FV on early buy-out loans guaranteed by US Govt (HFS)  2,733    (3,249 )   3,529    642    (2,190 ) Total fair value mortgage banking revenue $ 116   $ (1,453 )  $ (6,910 )  $ 747   $ 2,828  Total mortgage banking revenue $ 20,529   $ 20,452   $ 15,974   $ 29,124   $ 27,663

(1) Production revenue represents revenue earned from the origination and subsequent sale of mortgages, including gains on loans sold and fees from originations, changes in other related financial instruments carried at fair value, processing and other related activities, and excludes servicing fees, changes in the fair value of servicing rights and changes to the mortgage recourse obligation and other non-production revenue.
(2) Certain volume adjusted for the estimated pull-through rate of the loan, which represents the Company’s best estimate of the likelihood that a committed loan will ultimately fund.

TABLE 16: NON-INTEREST EXPENSE

Three Months Ended Q1 2025 compared to 
Q4 2024  Q1 2025 compared to 
Q1 2024 Mar 31,  Dec 31,  Sep 30,  Jun 30,  Mar 31, (Dollars in thousands)  2025    2024    2024    2024    2024  $ Change  % Change $ Change  % Change Salaries and employee benefits:  Salaries $ 123,917   $ 120,969   $ 118,971   $ 113,860   $ 112,172  $ 2,948   2 % $ 11,745   10 % Commissions and incentive compensation  52,536    54,792    57,575    52,151    51,001   (2,256 )  (4 )  1,535   3  Benefits  35,073    36,372    34,715    32,530    32,000   (1,299 )  (4 )  3,073   10  Total salaries and employee benefits  211,526    212,133    211,261    198,541    195,173   (607 )  (0 )  16,353   8  Software and equipment  34,717    34,258    31,574    29,231    27,731   459   1   6,986   25  Operating lease equipment  10,471    10,263    10,518    10,834    10,683   208   2   (212 )  (2 ) Occupancy, net  20,778    20,597    19,945    19,585    19,086   181   1   1,692   9  Data processing  11,274    10,957    9,984    9,503    9,292   317   3   1,982   21  Advertising and marketing  12,272    13,097    18,239    17,436    13,040   (825 )  (6 )  (768 )  (6 ) Professional fees  9,044    11,334    9,783    9,967    9,553   (2,290 )  (20 )  (509 )  (5 ) Amortization of other acquisition-related intangible assets  5,618    5,773    4,042    1,122    1,158   (155 )  (3 )  4,460   NM FDIC insurance  10,926    10,640    10,512    10,429    9,381   286   3   1,545   16  FDIC insurance - special assessment  —    —    —    —    5,156   —   —   (5,156 )  (100 ) OREO expense, net  643    397    (938 )   (259 )   392   246   62   251   64  Other:  Lending expenses, net of deferred origination costs  5,866    6,448    4,995    5,335    5,078   (582 )  (9 )  788   16  Travel and entertainment  5,270    8,140    5,364    5,340    4,597   (2,870 )  (35 )  673   15  Miscellaneous  27,685    24,502    25,408    23,289    22,825   3,183   13   4,860   21  Total other  38,821    39,090    35,767    33,964    32,500   (269 )  (1 )  6,321   19  Total Non-Interest Expense $ 366,090   $ 368,539   $ 360,687   $ 340,353   $ 333,145  $ (2,449 )  (1 )% $ 32,945   10 %

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 (“FTE”). 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 FTE basis is also used in the calculation of the Company’s efficiency ratio. The efficiency ratio, which is calculated by dividing non-interest expense by total taxable-equivalent net revenue (less securities gains or losses), measures how much it costs to produce one dollar of revenue. Securities gains or losses are excluded from this calculation to better match revenue from daily operations to operational expenses. Management considers the tangible common equity ratio and tangible book value per common share as useful measurements of the Company’s equity. The Company references the return on average tangible common equity as a measurement of profitability. Management considers 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) 2025  2024  2024  2024  2024 Reconciliation of Non-GAAP Net Interest Margin and Efficiency Ratio: (A) Interest Income (GAAP) $ 886,965   $ 913,501   $ 908,604   $ 849,979   $ 805,513  Taxable-equivalent adjustment:  - Loans  2,206    2,352    2,474    2,305    2,246  - Liquidity Management Assets  690    716    668    567    550  - Other Earning Assets  3    2    2    3    5  (B) Interest Income (non-GAAP) $ 889,864   $ 916,571   $ 911,748   $ 852,854   $ 808,314  (C) Interest Expense (GAAP)  360,491    388,353    406,021    379,369    341,319  (D) Net Interest Income (GAAP) (A minus C) $ 526,474   $ 525,148   $ 502,583   $ 470,610   $ 464,194  (E) Net Interest Income (non-GAAP) (B minus C) $ 529,373   $ 528,218   $ 505,727   $ 473,485   $ 466,995  Net interest margin (GAAP)  3.54 %   3.49 %   3.49 %   3.50 %   3.57 % Net interest margin, fully taxable-equivalent (non-GAAP)  3.56    3.51    3.51    3.52    3.59  (F) Non-interest income $ 116,634   $ 113,451   $ 113,147   $ 121,147   $ 140,580  (G) Gains (losses) on investment securities, net  3,196    (2,835 )   3,189    (4,282 )   1,326  (H) Non-interest expense  366,090    368,539    360,687    340,353    333,145  Efficiency ratio (H/(D+F-G))  57.21 %   57.46 %   58.88 %   57.10 %   55.21 % Efficiency ratio (non-GAAP) (H/(E+F-G))  56.95    57.18    58.58    56.83    54.95  Three Months Ended Mar 31,  Dec 31,  Sep 30,  Jun 30,  Mar 31, (Dollars and shares in thousands) 2025  2024  2024  2024  2024 Reconciliation of Non-GAAP Tangible Common Equity Ratio: Total shareholders’ equity (GAAP) $ 6,600,537   $ 6,344,297   $ 6,399,714   $ 5,536,628   $ 5,436,400  Less: Non-convertible preferred stock (GAAP)  (412,500 )   (412,500 )   (412,500 )   (412,500 )   (412,500 ) Less: Intangible assets (GAAP)  (913,004 )   (918,632 )   (924,646 )   (676,562 )   (677,911 ) (I) Total tangible common shareholders’ equity (non-GAAP) $ 5,275,033   $ 5,013,165   $ 5,062,568   $ 4,447,566   $ 4,345,989  (J) Total assets (GAAP) $ 65,870,066   $ 64,879,668   $ 63,788,424   $ 59,781,516   $ 57,576,933  Less: Intangible assets (GAAP)  (913,004 )   (918,632 )   (924,646 )   (676,562 )   (677,911 ) (K) Total tangible assets (non-GAAP) $ 64,957,062   $ 63,961,036   $ 62,863,778   $ 59,104,954   $ 56,899,022  Common equity to assets ratio (GAAP) (L/J)  9.4 %   9.1 %   9.4 %   8.6 %   8.7 % Tangible common equity ratio (non-GAAP) (I/K)  8.1    7.8    8.1    7.5    7.6

Reconciliation of Non-GAAP Tangible Book Value per Common Share: Total shareholders’ equity $ 6,600,537   $ 6,344,297   $ 6,399,714   $ 5,536,628   $ 5,436,400  Less: Preferred stock  (412,500 )   (412,500 )   (412,500 )   (412,500 )   (412,500 ) (L) Total common equity $ 6,188,037   $ 5,931,797   $ 5,987,214   $ 5,124,128   $ 5,023,900  (M) Actual common shares outstanding  66,919    66,495    66,482    61,760    61,737  Book value per common share (L/M) $ 92.47   $ 89.21   $ 90.06   $ 82.97   $ 81.38  Tangible book value per common share (non-GAAP) (I/M)  78.83    75.39    76.15    72.01    70.40   Reconciliation of Non-GAAP Return on Average Tangible Common Equity: (N) Net income applicable to common shares $ 182,048   $ 178,371   $ 163,010   $ 145,397   $ 180,303  Add: Intangible asset amortization  5,618    5,773    4,042    1,122    1,158  Less: Tax effect of intangible asset amortization  (1,421 )   (1,547 )   (1,087 )   (311 )   (291 ) After-tax intangible asset amortization $ 4,197   $ 4,226   $ 2,955   $ 811   $ 867  (O) Tangible net income applicable to common shares (non-GAAP) $ 186,245   $ 182,597   $ 165,965   $ 146,208   $ 181,170  Total average shareholders’ equity $ 6,460,941   $ 6,418,403   $ 5,990,429   $ 5,450,173   $ 5,440,457  Less: Average preferred stock  (412,500 )   (412,500 )   (412,500 )   (412,500 )   (412,500 ) (P) Total average common shareholders’ equity $ 6,048,441   $ 6,005,903   $ 5,577,929   $ 5,037,673   $ 5,027,957  Less: Average intangible assets  (916,069 )   (921,438 )   (833,574 )   (677,207 )   (678,731 ) (Q) Total average tangible common shareholders’ equity (non-GAAP) $ 5,132,372   $ 5,084,465   $ 4,744,355   $ 4,360,466   $ 4,349,226  Return on average common equity, annualized (N/P)  12.21 %   11.82 %   11.63 %   11.61 %   14.42 % Return on average tangible common equity, annualized (non-GAAP) (O/Q)  14.72    14.29    13.92    13.49    16.75   Reconciliation of Non-GAAP Pre-Tax, Pre-Provision Income:  Income before taxes $ 253,055   $ 253,081   $ 232,709   $ 211,343   $ 249,956  Add: Provision for credit losses  23,963    16,979    22,334    40,061    21,673  Pre-tax income, excluding provision for credit losses (non-GAAP) $ 277,018   $ 270,060   $ 255,043   $ 251,404   $ 271,629

WINTRUST SUBSIDIARIES

Wintrust is a financial holding company whose common stock is traded on the Nasdaq Global Select Market (Nasdaq: WTFC) that operates bank retail locations in the greater Chicago, southern Wisconsin, west Michigan, northwest Indiana, and southwest Florida market areas. Its 16 community bank subsidiaries are: Barrington Bank & Trust Company, N.A., Beverly Bank & Trust Company, N.A., Crystal Lake Bank & Trust Company, N.A., Hinsdale Bank & Trust Company, N.A., Lake Forest Bank & Trust Company, N.A., Libertyville Bank & Trust Company, N.A., Macatawa Bank, N.A., Northbrook Bank & Trust Company, N.A., Old Plank Trail Community Bank, N.A., Schaumburg Bank & Trust Company, N.A., St. Charles Bank & Trust Company, N.A., State Bank of The Lakes, N.A., Town Bank, N.A., Village Bank & Trust, N.A., Wheaton Bank & Trust Company, N.A., and Wintrust Bank, N.A.

Additionally, the Company operates various non-bank businesses:

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. Wintrust Private 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 2024 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 the Company’s 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:

economic conditions and events 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, including an actual or threatened U.S. government debt default or rating downgrade, particularly in the markets in which it operates; negative effects suffered by us or our customers resulting from changes in U.S. or international 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 that may affect, among other things, the Company’s liquidity and the value of its assets and liabilities; the interest rate environment, including a prolonged period of low interest rates or rising 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 losses, difficulties or developments related to 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 and similar events or data corruption attempts and identity theft; adverse effects on our information technology systems, or those of third parties, resulting from failures, human error or cyberattacks (including ransomware); adverse effects of failures by our vendors to provide agreed upon services in the manner and at the cost agreed, particularly our information technology vendors; increased costs as a result of protecting our customers from the impact of stolen debit card information; accuracy and completeness of information the Company receives about customers and counterparties to make credit decisions; ability of the Company to attract and retain senior management experienced in the banking and financial services industries; environmental liability risk associated with lending activities; the impact of any claims or legal actions to which the Company is subject, including any effect on our reputation; losses incurred in connection with repurchases and indemnification payments related to mortgages and increases in reserves associated therewith; the loss of customers as a result of technological changes allowing consumers to complete their financial transactions without the use of a bank; the soundness of other financial institutions and the impact of recent failures of financial institutions, including broader financial institution liquidity risk and concerns; 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; the impact of the Company’s transition from LIBOR to an alternative benchmark rate for current and future transactions; 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; changes in laws, regulations, rules, standards and contractual obligations regarding data privacy and cybersecurity; 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 persistent inflation 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; fluctuations in the stock market, which may have an adverse impact on the Company’s wealth management business and brokerage operation; and widespread outages of operational, communication, or other systems, whether internal or provided by third parties, natural or other disasters (including acts of terrorism, armed hostilities and pandemics), and the effects of climate change.

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 22, 2025 at 9:00 a.m. (CDT) regarding first quarter 2025 earnings results. Individuals interested in participating in the call by addressing questions to management should register for the call to receive the dial-in numbers and unique PIN at the Conference Call Link included within the Company’s press release dated March 31, 2025 available at the Investor Relations, Investor News and Events, Press Releases link on its website at https://www.wintrust.com. A separate simultaneous audio-only webcast link is included within the press release referenced above. Registration for and a replay of the audio-only webcast with an accompanying slide presentation will be available at https://www.wintrust.com, Investor Relations, Investor News and Events, Presentations & Conference Calls. The text of the first quarter 2025 earnings press release will also 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.

FOR MORE INFORMATION CONTACT:
Timothy S. Crane, President & Chief Executive Officer
David A. Dykstra, Vice Chairman & Chief Operating Officer
(847) 939-9000 
Web site address: www.wintrust.com

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