Finance

Wintrust Financial Corporation Reports Third Quarter and Year-to-Date Results

Published

2 years ago

October 21, 2024

Wintrust Financial Corporation Reports Third Quarter and Year-to-Date Results

ROSEMONT, Ill, Oct. 21, 2024 (GLOBE NEWSWIRE) — Wintrust Financial Corporation (“Wintrust”, “the Company”, “we” or “our”) (Nasdaq: WTFC) announced net income of $509.7 million or $7.67 per diluted common share for the first nine months of 2024 compared to net income of $499.1 million or $7.71 per diluted common share for the same period of 2023. Pre-tax, pre-provision income (non-GAAP) for the first nine months of 2024 totaled a record $778.1 million, compared to $751.3 million in the first nine months of 2023.

The Company recorded quarterly net income of $170.0 million or $2.47 per diluted common share for the third quarter of 2024 compared to net income of $152.4 million or $2.32 per diluted common share for the second quarter of 2024. Pre-tax, pre-provision income (non-GAAP) totaled $255.0 million as compared to $251.4 million for the second quarter of 2024.

Results of operations include those of Macatawa Bank Corporation (“Macatawa”), since the acquisition date of August 1, 2024.

Timothy S. Crane, President and Chief Executive Officer, commented, “Our net income for both the third quarter and year-to-date 2024 were driven by robust organic loan and deposit growth as well as a stable net interest margin. We believe we are well-positioned for strong financial performance as we continue our momentum in the fourth quarter of 2024 and into 2025.”

Additionally, Mr. Crane emphasized, “Net interest margin in the third quarter remained stable, decreasing one basis point as compared to the second quarter of 2024. We expect net interest margin to remain in the 3.50% range in the fourth quarter of 2024 and into 2025. Stable net interest margin coupled with continued balance sheet growth should result in net interest income growth. Focusing on growth of net interest income, disciplined expense control and maintaining our consistent credit standards should drive strong financial performance.”

Mr. Crane continued, “I want to recognize the efforts of our new Macatawa teammates and committed Wintrust team members on the seamless transaction and a solid beginning to integration activities. Macatawa offers a unique opportunity for Wintrust to expand into the desirable west Michigan market with a compatible management team and reputable brand. The quality core deposit franchise, excess liquidity and pristine credit quality coupled with aligned values make the acquisition an ideal fit for the Company. We are thrilled to bring our product offerings to Michigan and continue Macatawa’s commitment to customer service and community involvement.”

Highlights of the third quarter of 2024:
Comparative information to the second quarter of 2024, unless otherwise noted

Total loans increased by approximately $2.4 billion, which includes approximately $1.3 billion of acquired balances relating to Macatawa. Excluding Macatawa, total loans increased $1.1 billion or 10% annualized.
Total deposits increased by approximately $3.4 billion, which includes approximately $2.3 billion of acquired balances relating to Macatawa. Excluding Macatawa, total deposits increased $1.1 billion or 9% annualized.
Total assets increased by $4.0 billion, which includes approximately $2.9 billion of acquired assets relating to Macatawa. Excluding Macatawa, total assets increased $1.1 billion or 8% annualized.
Net interest income increased to $502.6 million in the third quarter of 2024 compared to $470.6 million in the second quarter of 2024, primarily due to average earning asset growth and the addition of Macatawa for the last two months of the third quarter.
Non-interest income was impacted by the following:
- Net gains on investment securities totaling $3.2 million in the third quarter of 2024 related to changes in the value of equity securities as compared to net losses of $4.3 million in the second quarter of 2024.
- Unfavorable mortgage servicing rights (“MSRs”) related revenue totaled $11.4 million in the third quarter of 2024 compared to favorable MSRs related revenue of $2.8 million in the second quarter of 2024.
Non-interest expense was impacted by the following:
- Macatawa added approximately $10.1 million of total operating expenses, including $3.0 million of core deposit intangible asset amortization.
- Incurred acquisition related costs of $1.6 million in the third quarter of 2024 as compared to $542,000 in the second quarter of 2024.
Provision for credit losses totaled $22.3 million in the third quarter of 2024, including a one-time acquisition-related Day 1 provision of approximately $15.5 million, as compared to a provision for credit losses of $40.1 million in the second quarter of 2024.
Tangible book value per common share (non-GAAP) increased to $76.15 as of September 30, 2024 as compared to $72.01 as of June 30, 2024. See Table 18 for reconciliation of non-GAAP measures.

Mr. Crane noted, “We are very pleased with our organic loan and deposit growth rates. Excess liquidity acquired in the Macatawa transaction was deployed by funding quality loan growth and reducing exposure to wholesale and brokered funding sources. Non-interest bearing deposits remained at 21% of total deposits at the end of the third quarter of 2024 and increased $708 million compared to the second quarter of 2024. We continue to leverage our customer relationships and market positioning to generate deposits, grow loans and build long term franchise value.”

Commenting on credit quality, Mr. Crane stated, “Our credit metrics were stable. Net charge-offs totaled $26.7 million, or 23 basis points of average total loans on an annualized basis, in the third quarter of 2024 and were spread primarily across the commercial and property and casualty premium finance receivables portfolios. This compared to net charge-offs totaling $30.0 million, or 28 basis points of average total loans on an annualized basis, in the second quarter of 2024. Approximately $18.3 million of charge-offs in the current quarter were previously reserved for in the second quarter of 2024. Non-performing loans totaled $179.7 million, or 0.38% of total loans, at the end of the third quarter of 2024 compared to $174.3 million, or 0.39% of total loans, at the end of the second quarter of 2024. Total non-performing assets comprised 0.30% of total assets as of September 30, 2024, a two basis point decline compared to June 30, 2024. We continue to be conservative and proactive in reviewing credit and maintaining our consistently strong credit standards. We believe that the Company’s reserves remain appropriate and we remain diligent in our review of credit.”

In summary, Mr. Crane noted, “Our record year continued as we built upon our strong momentum with the acquisition of Macatawa. Substantial loan growth in the third quarter and inclusion of Macatawa for all three months in the fourth quarter create positive revenue momentum. We have reduced our asset sensitivity to interest rates and therefore we believe that we are well positioned for the current interest rate environment and consensus forecast for additional interest rate cuts by the Federal Reserve. Steadfast commitment to credit quality, growing net interest income and increasing our long term franchise value remain our priority.”

The graphs below illustrate certain financial highlights of the third quarter of 2024 as well as historical financial performance. See “Supplemental Non-GAAP Financial Measures/Ratios” at Table 18 for additional information with respect to non-GAAP financial measures/ratios, including the reconciliations to the corresponding GAAP financial measures/ratios.

Graphs available at the following link: http://ml.globenewswire.com/Resource/Download/bc11950c-ec29-45c6-902d-8e0709edd6de

SUMMARY OF RESULTS:

BALANCE SHEET

Total assets increased $4.0 billion in the third quarter of 2024 as compared to the second quarter of 2024. Total loans increased by $2.4 billion as compared to the second quarter of 2024. The increase in total loans included approximately $1.3 billion of loans related to the Macatawa acquisition. The increase in loans was diversified across nearly all loan portfolios.

Total liabilities increased by $3.1 billion in the third quarter of 2024 as compared to the second quarter of 2024 primarily due to a $3.4 billion increase in total deposits. The increase in total deposits included approximately $2.3 billion related to the Macatawa acquisition. Excess liquidity acquired in the Macatawa transaction enabled the Company to reduce brokered funding reliance by $858 million. Non-interest bearing deposits increased $708 million in the third quarter of 2024 as compared to the second quarter of 2024. Non-interest bearing deposits as a percentage of total deposits was 21% at September 30, 2024, June 30, 2024 and March 31, 2024. The Company’s loans to deposits ratio was 91.6% on September 30, 2024 as compared to 93.0% as of June 30, 2024.

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 third quarter of 2024, net interest income totaled $502.6 million, an increase of $32.0 million as compared to the second quarter of 2024. The $32.0 million increase in net interest income in the third quarter of 2024 compared to the second quarter of 2024 was primarily due to a $3.1 billion increase in average earning assets, which included the addition of Macatawa in the third quarter. These benefits were partially offset by a one basis point decrease in the net interest margin.

Net interest margin was 3.49% (3.51% on a fully taxable-equivalent basis, non-GAAP) during the third quarter of 2024 compared to 3.50% (3.52% on a fully taxable-equivalent basis, non-GAAP) during the second quarter of 2024. The net interest margin decrease as compared to the second quarter of 2024 was primarily due to a one basis point decrease in the yield on earning assets and one basis point decrease in the net free funds contribution. These declines were partially offset by a one basis point decrease in rate paid on interest-bearing liabilities. The one basis point decrease in yield on earnings assets in the third quarter of 2024 as compared to the second quarter of 2024 was primarily due to an increase in average interest-bearing cash as a percentage of average quarterly earning assets associated with the Macatawa acquisition. The one basis point decrease in the rate paid on interest-bearing liabilities in the third quarter of 2024 as compared to the second quarter of 2024 was primarily due to a one basis point decrease in rate paid on interest-bearing deposits.

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

ASSET QUALITY

The allowance for credit losses totaled $436.2 million as of September 30, 2024, relatively unchanged compared to $437.6 million as of June 30, 2024. A provision for credit losses totaling $22.3 million was recorded for the third quarter of 2024 as compared to $40.1 million recorded in the second quarter of 2024. Provision for credit losses in the third quarter of 2024 included Day 1 provision for credit losses of approximately $15.5 million related to the Macatawa acquisition. The lower provision for credit losses recognized in the third quarter of 2024 compared to the second quarter of 2024 was primarily attributable to lower required specific reserves on nonaccrual loans, improved forecasted macroeconomic conditions, and, to a lesser extent, portfolio changes related to improved risk rating mix and shorter life of loan. For more information regarding the allowance for credit losses and provision for credit losses, see Table 11 in this report.

Management believes the allowance for credit losses is appropriate to account for expected credit losses. The Current Expected Credit Losses accounting standard requires the Company to estimate expected credit losses over the life of the Company’s financial assets as of the reporting date. There can be no assurances, however, that future losses will not significantly exceed the amounts provided for, thereby affecting future results of operations. A summary of the allowance for credit losses calculated for the loan components in each portfolio as of September 30, 2024, June 30, 2024, and March 31, 2024 is shown on Table 12 of this report.

Net charge-offs totaled $26.7 million in the third quarter of 2024, a decrease of $3.3 million as compared to $30.0 million of net charge-offs in the second quarter of 2024. Approximately $18.3 million of charge-offs in the current quarter were previously reserved for in the second quarter of 2024. Net charge-offs as a percentage of average total loans were 23 basis points in the third quarter of 2024 on an annualized basis compared to 28 basis points on an annualized basis in the second quarter of 2024. For more information regarding net charge-offs, see Table 10 in this report.

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

Non-performing assets totaled $193.4 million and comprised 0.30% of total assets as of September 30, 2024, as compared to $194.0 million, or 0.32% of total assets, as of June 30, 2024. Non-performing loans totaled $179.7 million and comprised 0.38% of total loans at September 30, 2024, as compared to $174.3 million and 0.39% of total loans at June 30, 2024. The increase in the third quarter of 2024 was primarily due to an increase in certain credits within the commercial portfolios becoming nonaccrual. For more information regarding non-performing assets, see Table 14 in this report.

Credit metrics remained stable and at relatively low levels in the third quarter of 2024.

NON-INTEREST INCOME

Wealth management revenue increased by $1.8 million in the third quarter of 2024 as compared to the second quarter of 2024 primarily due to the Macatawa acquisition and increased asset management fees from higher assets under management during the period. 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 decreased by $13.2 million in the third quarter of 2024 as compared to the second quarter of 2024 primarily due to $11.4 million unfavorable MSR related revenues, net of servicing hedge, in the third quarter of 2024 compared to $2.8 million favorable MSR related revenues in the second quarter of 2024 and slightly decreased production revenue due to reduced production margin. This was partially offset by a favorable adjustment to the Company’s held-for-sale portfolio of early buy-out exercised loans guaranteed by U.S. government agencies, which are held at fair value, of $3.5 million in the third quarter of 2024 compared to a $642,000 favorable adjustment in the second quarter of 2024. The Company monitors the relationship of these assets and seeks to minimize the earnings impact of fair value changes. For more information regarding mortgage banking revenue, see Table 16 in this report.

The Company recognized $3.2 million in net gains on investment securities in the third quarter of 2024 as compared to $4.3 million in net losses in the second quarter of 2024. The net gains in the third quarter of 2024 were primarily the result of unrealized gains on the Company’s equity investment securities with a readily determinable fair value.

Fees from covered call options decreased by $1.1 million in the third quarter of 2024 as compared to the second quarter of 2024. The Company has typically written call options with terms of less than three months against certain U.S. Treasury and agency securities held in its portfolio for liquidity and other purposes. Management has entered into these transactions with the goal of economically hedging security positions and enhancing its overall return on its investment portfolio. These option transactions are designed to mitigate overall interest rate risk and do not qualify as hedges pursuant to accounting guidance.

Other income decreased by $5.1 million in the third quarter of 2024 compared to the second quarter of 2024 primarily due to a gain recognized in the second quarter of 2024 associated with our property and casualty insurance premium finance receivable loan sale transaction.

For more information regarding non-interest income, see Table 15 in this report.

NON-INTEREST EXPENSE

Non-interest expenses totaled $360.7 million in the third quarter of 2024, increasing $20.3 million as compared to $340.4 million in the second quarter of 2024. The Macatawa acquisition impacted this increase by approximately $10.1 million of non-interest expense associated with Macatawa, which included $3.0 million in amortization of other acquisition-related intangible assets in the third quarter of 2024.

Salaries and employee benefits expense increased by $12.7 million in the third quarter of 2024 as compared to the second quarter of 2024. The $12.7 million increase is primarily related to higher incentive compensation expense due to elevated bonus accruals in the third quarter of 2024 as well as increased salaries expense due to the Macatawa acquisition and additional staffing to support the Company’s growth.

Software and equipment expense increased $2.3 million in the third quarter of 2024 as compared to the second quarter of 2024 primarily due to software expense relating to upgrading and maintenance of information technology and security infrastructure as well as the Macatawa acquisition.

Advertising and marketing expenses in the third quarter of 2024 totaled $18.2 million, which is a $803,000 increase as compared to the second quarter of 2024. Marketing costs are incurred to promote the Company’s brand, commercial banking capabilities and the Company’s various products, to attract loans and deposits and to announce new branch openings as well as the expansion of the Company’s non-bank businesses. The level of marketing expenditures depends on the timing of sponsorship programs utilized which are determined based on the market area, targeted audience, competition and various other factors. Generally, these expenses are elevated in the second and third quarters of each year.

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

INCOME TAXES

The Company recorded income tax expense of $62.7 million in the third quarter compared to $59.0 million in the second quarter of 2024. The effective tax rates were 26.95% in the third quarter of 2024 compared to 27.90% in the second quarter of 2024. The effective tax rates were impacted by an overall lower level of provision for state income tax expense in the comparable periods.

BUSINESS UNIT SUMMARY

Community Banking

Through its community banking unit, the Company provides banking and financial services primarily to individuals, small to mid-sized businesses, local governmental units and institutional clients residing primarily in the local areas the Company services. In the third quarter of 2024, the community banking unit expanded its commercial, commercial real estate and residential real estate loan portfolios.

Mortgage banking revenue was $16.0 million for the third quarter of 2024, a decrease of $13.2 million as compared to the second quarter of 2024, primarily due to $11.4 million unfavorable MSR related revenues, net of servicing hedge, in the third quarter of 2024 compared to $2.8 million favorable MSR related revenues in the second quarter of 2024 and slightly decreased production revenue due to reduced production margin. This was partially offset by a favorable adjustment to the Company’s held-for-sale portfolio of early buy-out exercised loans guaranteed by U.S. government agencies, which are held at fair value, of $3.5 million in the third quarter of 2024 compared to a $642,000 favorable adjustment in the second quarter of 2024. Service charges on deposit accounts totaled $16.4 million in the third quarter of 2024, which was relatively stable compared to the second quarter of 2024. The Company’s gross commercial and commercial real estate loan pipelines remained solid as of September 30, 2024 indicating momentum for expected continued loan growth in the fourth quarter of 2024.

Specialty Finance

Through its specialty finance unit, the Company offers financing of insurance premiums for businesses and individuals, equipment financing through structured loans and lease products to customers in a variety of industries, accounts receivable financing and value-added, out-sourced administrative services and other services. Originations within the insurance premium financing receivables portfolios were $4.8 billion during the third quarter of 2024. Average balances increased by $259.8 million, as compared to the second quarter of 2024. The Company’s leasing portfolio balance remained stable in the third quarter of 2024, with its portfolio of assets, including capital leases, loans and equipment on operating leases, totaling $3.7 billion as of September 30, 2024 and June 30, 2024. Revenues from the Company’s out-sourced administrative services business were $1.5 million in the third quarter of 2024, which was relatively stable compared to the second quarter of 2024.

Wealth Management

Through four separate subsidiaries within its wealth management unit, the Company offers a full range of wealth management services, including trust and investment services, tax-deferred like-kind exchange services, asset management, 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 $37.2 million in the third quarter of 2024, relatively stable as compared to the second quarter of 2024. At September 30, 2024, the Company’s wealth management subsidiaries had approximately $51.1 billion of assets under administration, which included $8.0 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 approximately $2.9 billion in assets, $2.3 billion in deposits and $1.3 billion in loans. The Company preliminarily recorded goodwill of approximately $144.6 million on the purchase.

Division Sale

In the first quarter of 2024, the Company sold its RBA division and recorded a gain of approximately $20.0 million in other non-interest income from the sale.

Business Combination

On April 3, 2023, the Company completed its acquisition of Rothschild & Co Asset Management US Inc. and Rothschild & Co Risk Based Investments LLC from Rothschild & Co North America Inc. As the transaction was determined to be a business combination, the Company recorded goodwill of approximately $2.6 million on the purchase.

WINTRUST FINANCIAL CORPORATION
Key Operating Measures

Wintrust’s key operating measures and growth rates for the third quarter of 2024, as compared to the second quarter of 2024 (sequential quarter) and third quarter of 2023 (linked quarter), are shown in the table below:

% or⁽¹⁾
basis point (bp) change from
2nd Quarter
2024

% or
basis point (bp) change from
3rd Quarter
2023

Three Months Ended

(Dollars in thousands, except per share data)

Sep 30, 2024

Jun 30, 2024

Sep 30, 2023

Net income

170,001

152,388

164,198

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

255,043

251,404

244,781

Net income per common share – Diluted

2.47

2.32

2.53

(2)

Cash dividends declared per common share

0.45

0.45

0.40

—

Net revenue ⁽³⁾

615,730

591,757

574,836

Net interest income

502,583

470,610

462,358

Net interest margin

3.49

3.50

3.60

(1)

bps

(11)

bps

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

3.51

3.52

3.62

(1)

(11)

Net overhead ratio ⁽⁴⁾

1.62

1.53

1.59

Return on average assets

1.11

1.07

1.20

(9)

Return on average common equity

11.63

11.61

13.35

(172)

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

13.92

13.49

15.73

(181)

At end of period

Total assets

63,788,424

59,781,516

55,555,246

Total loans ⁽⁵⁾

47,067,447

44,675,531

41,446,032

Total deposits

51,404,966

48,049,026

44,992,686

Total shareholders’ equity

6,399,714

5,536,628

5,015,613

^{(1)   Period-end balance sheet percentage changes are annualized.
(2)   See Table 18: 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

Nine Months Ended

(Dollars in thousands, except per share data)

Sep 30, 2024

Jun 30, 2024

Mar 31, 2024

Dec 31, 2023

Sep 30, 2023

Sep 30, 2024

Sep 30, 2023

Selected Financial Condition Data (at end of period):

Total assets

63,788,424

59,781,516

57,576,933

56,259,934

55,555,246

Total loans⁽¹⁾

47,067,447

44,675,531

43,230,706

42,131,831

41,446,032

Total deposits

51,404,966

48,049,026

46,448,858

45,397,170

44,992,686

Total shareholders’ equity

6,399,714

5,536,628

5,436,400

5,399,526

5,015,613

Selected Statements of Income Data:

Net interest income

502,583

470,610

464,194

469,974

462,358

1,437,387

1,367,890

Net revenue⁽²⁾

615,730

591,757

604,774

570,803

574,836

1,812,261

1,701,167

Net income

170,001

152,388

187,294

123,480

164,198

509,683

499,146

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

255,043

251,404

271,629

208,151

244,781

778,076

751,320

Net income per common share – Basic

2.51

2.35

2.93

1.90

2.57

7.79

7.82

Net income per common share – Diluted

2.47

2.32

2.89

1.87

2.53

7.67

7.71

Cash dividends declared per common share

0.45

0.45

0.40

1.35

1.20

Selected Financial Ratios and Other Data:

Performance Ratios:

Net interest margin

3.49

3.50

3.57

3.62

3.60

3.52

3.68

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

3.51

3.52

3.59

3.64

3.62

3.54

3.70

Non-interest income to average assets

0.74

0.85

1.02

0.73

0.82

0.86

0.84

Non-interest expense to average assets

2.36

2.38

2.41

2.62

2.41

2.38

2.39

Net overhead ratio⁽⁴⁾

1.62

1.53

1.39

1.89

1.59

1.52

1.55

Return on average assets

1.11

1.07

1.35

0.89

1.20

1.17

1.26

Return on average common equity

11.63

11.61

14.42

9.93

13.35

12.52

13.91

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

13.92

13.49

16.75

11.73

15.73

14.69

16.43

Average total assets

60,915,283

57,493,184

55,602,695

55,017,075

54,381,981

58,014,347

53,028,199

Average total shareholders’ equity

5,990,429

5,450,173

5,440,457

5,066,196

5,083,883

5,628,346

5,008,648

Average loans to average deposits ratio

93.8

95.1

94.5

92.9

92.4

94.5

93.2

Period-end loans to deposits ratio

91.6

93.0

93.1

92.8

92.1

Common Share Data at end of period:

Market price per common share

108.53

98.56

104.39

92.75

75.50

Book value per common share

90.06

82.97

81.38

81.43

75.19

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

76.15

72.01

70.40

70.33

64.07

Common shares outstanding

66,481,543

61,760,139

61,736,715

61,243,626

61,222,058

Other Data at end of period:

Common equity to assets ratio

9.4

8.6

8.7

8.9

8.3

Tangible common equity ratio (non-GAAP)⁽³⁾

8.1

7.5

7.6

7.7

7.1

Tier 1 leverage ratio⁽⁵⁾

9.4

9.3

9.4

9.3

9.2

Risk-based capital ratios:

Tier 1 capital ratio⁽⁵⁾

10.5

10.3

10.2

Common equity tier 1 capital ratio⁽⁵⁾

9.8

9.5

9.4

9.3

Total capital ratio⁽⁵⁾

12.2

12.1

12.2

12.1

12.0

Allowance for credit losses⁽⁶⁾

436,193

437,560

427,504

427,612

399,531

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

0.93

0.98

0.99

1.01

0.96

Number of:

Bank subsidiaries

Banking offices

203

177

176

174

^{(1)   Excludes mortgage loans held-for-sale.}
^{(2)   Net revenue is net interest income plus non-interest income.}
^{(3)   See Table 18: 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)

Sep 30,

Jun 30,

Mar 31,

Dec 31,

Sep 30,

(In thousands)

2024

2024

2023

Assets

Cash and due from banks

725,465

415,462

379,825

423,404

418,088

Federal funds sold and securities purchased under resale agreements

5,663

Interest-bearing deposits with banks

3,648,117

2,824,314

2,131,077

2,084,323

2,448,570

Available-for-sale securities, at fair value

3,912,232

4,329,957

4,387,598

3,502,915

3,611,835

Held-to-maturity securities, at amortized cost

3,677,420

3,755,924

3,810,015

3,856,916

3,909,150

Trading account securities

3,472

4,134

2,184

4,707

1,663

Equity securities with readily determinable fair value

125,310

112,173

119,777

139,268

134,310

Federal Home Loan Bank and Federal Reserve Bank stock

266,908

256,495

224,657

205,003

204,040

Brokerage customer receivables

16,662

13,682

13,382

10,592

14,042

Mortgage loans held-for-sale, at fair value

461,067

411,851

339,884

292,722

304,808

Loans, net of unearned income

47,067,447

44,675,531

43,230,706

42,131,831

41,446,032

Allowance for loan losses

(360,279

)

(363,719

)

(348,612

)

(344,235

)

(315,039

)

Net loans

46,707,168

44,311,812

42,882,094

41,787,596

41,130,993

Premises, software and equipment, net

772,002

722,295

744,769

748,966

747,501

Lease investments, net

270,171

275,459

283,557

281,280

275,152

Accrued interest receivable and other assets

1,721,090

1,671,334

1,580,142

1,551,899

1,674,681

Trade date securities receivable

551,031

—

690,722

—

Goodwill

800,780

655,955

656,181

656,672

656,109

Other acquisition-related intangible assets

123,866

20,607

21,730

22,889

24,244

Total assets

63,788,424

59,781,516

57,576,933

56,259,934

55,555,246

Liabilities and Shareholders’ Equity

Deposits:

Non-interest-bearing

10,739,132

10,031,440

9,908,183

10,420,401

10,347,006

Interest-bearing

40,665,834

38,017,586

36,540,675

34,976,769

34,645,680

Total deposits

51,404,966

48,049,026

46,448,858

45,397,170

44,992,686

Federal Home Loan Bank advances

3,171,309

3,176,309

2,676,751

2,326,071

Other borrowings

647,043

606,579

575,408

645,813

643,999

Subordinated notes

298,188

298,113

437,965

437,866

437,731

Junior subordinated debentures

253,566

253,566

Accrued interest payable and other liabilities

1,613,638

1,861,295

1,747,985

1,799,922

1,885,580

Total liabilities

57,388,710

54,244,888

52,140,533

50,860,408

50,539,633

Shareholders’ Equity:

Preferred stock

412,500

412,500

Common stock

66,546

61,825

61,798

61,269

61,244

Surplus

2,470,228

1,964,645

1,954,532

1,943,806

1,933,226

Treasury stock

(6,098

)

(5,760

)

(5,757

)

(2,217

)

(1,966

)

Retained earnings

3,748,715

3,615,616

3,498,475

3,345,399

3,253,332

Accumulated other comprehensive loss

(292,177

)

(512,198

)

(485,148

)

(361,231

)

(642,723

)

Total shareholders’ equity

6,399,714

5,536,628

5,436,400

5,399,526

5,015,613

Total liabilities and shareholders’ equity

63,788,424

59,781,516

57,576,933

56,259,934

55,555,246

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

Three Months Ended

Nine Months Ended

(Dollars in thousands, except per share data)

Sep 30,
2024

Jun 30,
2024

Mar 31,
2024

Dec 31,
2023

Sep 30,
2023

Sep 30, 2024

Sep 30, 2023

Interest income

Interest and fees on loans

794,163

749,812

710,341

694,943

666,260

2,254,316

1,846,009

Mortgage loans held-for-sale

6,233

5,434

4,146

4,318

4,767

15,813

12,473

Interest-bearing deposits with banks

32,608

19,731

16,658

21,762

26,866

68,997

57,216

Federal funds sold and securities purchased under resale agreements

277

578

1,157

313

1,228

Investment securities

69,592

69,779

69,678

68,237

59,164

209,049

170,350

Trading account securities

Federal Home Loan Bank and Federal Reserve Bank stock

5,451

4,974

4,478

3,792

3,896

14,903

11,120

Brokerage customer receivables

269

219

175

203

284

663

844

Total interest income

908,604

849,979

805,513

793,848

762,400

2,564,096

2,099,266

Interest expense

Interest on deposits

362,019

335,703

299,532

285,390

262,783

997,254

621,080

Interest on Federal Home Loan Bank advances

26,254

24,797

22,048

18,316

17,436

73,099

53,970

Interest on other borrowings

9,013

8,700

9,248

9,557

9,384

26,961

25,723

Interest on subordinated notes

3,712

5,185

5,487

5,522

5,491

14,384

16,502

Interest on junior subordinated debentures

5,023

4,984

5,004

5,089

4,948

15,011

14,101

Total interest expense

406,021

379,369

341,319

323,874

300,042

1,126,709

731,376

Net interest income

502,583

470,610

464,194

469,974

462,358

1,437,387

1,367,890

Provision for credit losses

22,334

40,061

21,673

42,908

19,923

84,068

71,482

Net interest income after provision for credit losses

480,249

430,549

442,521

427,066

442,435

1,353,319

1,296,408

Non-interest income

Wealth management

37,224

35,413

34,815

33,275

33,529

107,452

97,332

Mortgage banking

15,974

29,124

27,663

7,433

27,395

72,761

75,640

Service charges on deposit accounts

16,430

15,546

14,811

14,522

14,217

46,787

40,728

Gains (losses) on investment securities, net

3,189

(4,282

)

1,326

2,484

(2,357

)

233

(959

)

Fees from covered call options

988

2,056

4,847

4,679

4,215

7,891

17,184

Trading (losses) gains, net

(130

)

677

(505

)

728

617

1,647

Operating lease income, net

15,335

13,938

14,110

14,162

13,863

43,383

39,136

Other

24,137

29,282

42,331

24,779

20,888

95,750

62,569

Total non-interest income

113,147

121,147

140,580

100,829

112,478

374,874

333,277

Non-interest expense

Salaries and employee benefits

211,261

198,541

195,173

193,971

192,338

604,975

554,042

Software and equipment

31,574

29,231

27,731

27,779

25,951

88,536

76,853

Operating lease equipment

10,518

10,834

10,683

10,694

12,020

32,035

31,669

Occupancy, net

19,945

19,585

19,086

18,102

21,304

58,616

58,966

Data processing

9,984

9,503

9,292

8,892

10,773

28,779

29,908

Advertising and marketing

18,239

17,436

13,040

17,166

18,169

48,715

47,909

Professional fees

9,783

9,967

9,553

8,768

8,887

29,303

25,990

Amortization of other acquisition-related intangible assets

4,042

1,122

1,158

1,356

1,408

6,322

4,142

FDIC insurance

10,512

10,429

14,537

43,677

9,748

35,478

27,425

OREO expenses, net

(938

)

(259

)

392

(1,559

)

120

(805

)

Other

35,767

33,964

32,500

33,806

29,337

102,231

92,912

Total non-interest expense

360,687

340,353

333,145

362,652

330,055

1,034,185

949,847

Income before taxes

232,709

211,343

249,956

165,243

224,858

694,008

679,838

Income tax expense

62,708

58,955

62,662

41,763

60,660

184,325

180,692

Net income

170,001

152,388

187,294

123,480

164,198

509,683

499,146

Preferred stock dividends

6,991

6,991

20,973

20,973

Net income applicable to common shares

163,010

145,397

180,303

116,489

157,207

488,710

478,173

Net income per common share – Basic

2.51

2.35

2.93

1.90

2.57

7.79

7.82

Net income per common share – Diluted

2.47

2.32

2.89

1.87

2.53

7.67

7.71

Cash dividends declared per common share

0.45

0.45

0.40

1.35

1.20

Weighted average common shares outstanding

64,888

61,839

61,481

61,236

61,213

62,743

61,119

Dilutive potential common shares

1,053

926

928

1,166

964

934

888

Average common shares and dilutive common shares

65,941

62,765

62,409

62,402

62,177

63,677

62,007

TABLE 1: LOAN PORTFOLIO MIX AND GROWTH RATES

	Advertisement								Advertisement						% Growth From
(Dollars in thousands) Advertisement	Sep 30, 2024			Jun 30, 2024			Mar 31, 2024 Advertisement			Dec 31, 2023			Sep 30, 2023		Dec 31, 2023⁽¹⁾ Advertisement			Sep 30, 2023
Balance:			Advertisement							Advertisement								Advertisement
Mortgage loans held-for-sale, excluding early buy-out exercised loans guaranteed by U.S. government agencies	$	314,693		$ Advertisement	281,103		$	193,064	Advertisement	$	155,529		$	190,511 Advertisement	NM			65	%
Mortgage loans held-for-sale, early buy-out exercised loans guaranteed by U.S. government agencies Advertisement		146,374			130,748 Advertisement			146,820		Advertisement	137,193			114,297	9 Advertisement			28
Total mortgage loans held-for-sale Advertisement	$	461,067		$	411,851 Advertisement		$	339,884		$ Advertisement	292,722		$	304,808	77 Advertisement	%		51	%
Advertisement							Advertisement								Advertisement
Core loans:			Advertisement							Advertisement								Advertisement
Commercial						Advertisement							Advertisement
Commercial and industrial	$ Advertisement	6,768,382		$	6,226,336	Advertisement	$	6,105,968		$	5,804,629 Advertisement		$	5,894,732	22	% Advertisement		15	%
Asset-based lending	Advertisement	1,709,685			1,465,867	Advertisement		1,355,255			1,433,250 Advertisement			1,396,591	26	Advertisement		22
Municipal	Advertisement	827,125			747,357	Advertisement		721,526			677,143 Advertisement			676,915	30	Advertisement		22
Leases	Advertisement	2,443,721			2,439,128	Advertisement		2,344,295			2,208,368 Advertisement			2,109,628	14	Advertisement		16
PPP loans	Advertisement	6,301			9,954	Advertisement		11,036			11,533 Advertisement			13,744	(61	) Advertisement		(54	)
Commercial real estate	Advertisement								Advertisement								Advertisement
Residential construction		73,088	Advertisement		55,019			57,558 Advertisement			58,642		Advertisement	51,550	33			42 Advertisement
Commercial construction		1,984,240	Advertisement		1,866,701			1,748,607 Advertisement			1,729,937		Advertisement	1,547,322	20			28 Advertisement
Land		346,362	Advertisement		338,831			344,149 Advertisement			295,462		Advertisement	294,901	23			17 Advertisement
Office		1,675,286	Advertisement		1,585,312			1,566,748 Advertisement			1,455,417		Advertisement	1,422,748	20			18 Advertisement
Industrial		2,527,932	Advertisement		2,307,455			2,190,200 Advertisement			2,135,876		Advertisement	2,057,957	25			23 Advertisement
Retail		1,404,586	Advertisement		1,365,753			1,366,415 Advertisement			1,337,517		Advertisement	1,341,451	7			5 Advertisement
Multi-family		3,193,339	Advertisement		2,988,940			2,922,432 Advertisement			2,815,911		Advertisement	2,710,829	18			18 Advertisement
Mixed use and other		1,588,584	Advertisement		1,439,186			1,437,328 Advertisement			1,515,402		Advertisement	1,519,422	6			5 Advertisement
Home equity		427,043	Advertisement		356,313			340,349 Advertisement			343,976		Advertisement	343,258	32			24 Advertisement
Residential real estate				Advertisement								Advertisement
Residential real estate loans for investment Advertisement		3,252,649			2,933,157 Advertisement			2,746,916		Advertisement	2,619,083			2,538,630	32 Advertisement			28
Residential mortgage loans, early buy-out eligible loans guaranteed by U.S. government agencies Advertisement		92,355			88,503 Advertisement			90,911		Advertisement	92,780			97,911	(1 Advertisement	)		(6	)
Residential mortgage loans, early buy-out exercised loans guaranteed by U.S. government agencies Advertisement		43,034			45,675 Advertisement			52,439		Advertisement	57,803			71,062	(34 Advertisement	)		(39	)
Total core loans Advertisement	$	28,363,712		$	26,259,487 Advertisement		$	25,402,132		$ Advertisement	24,592,729		$	24,088,651	20 Advertisement	%		18	%
Advertisement							Advertisement								Advertisement
Niche loans:			Advertisement							Advertisement								Advertisement
Commercial						Advertisement							Advertisement
Franchise	$ Advertisement	1,191,686		$	1,150,460	Advertisement	$	1,122,302		$	1,092,532 Advertisement		$	1,074,162	12	% Advertisement		11	%
Mortgage warehouse lines of credit	Advertisement	750,462			593,519	Advertisement		403,245			230,211 Advertisement			245,450	302	Advertisement		206
Community Advantage – homeowners association	Advertisement	501,645			491,722	Advertisement		475,832			452,734 Advertisement			424,054	14	Advertisement		18
Insurance agency lending	Advertisement	1,048,686			1,030,119	Advertisement		964,022			921,653 Advertisement			890,197	18	Advertisement		18
Premium Finance receivables	Advertisement								Advertisement								Advertisement
U.S. property & casualty insurance		6,253,271	Advertisement		6,142,654			6,113,993 Advertisement			5,983,103		Advertisement	5,815,346	6			8 Advertisement
Canada property & casualty insurance		878,410	Advertisement		958,099			826,026 Advertisement			920,426		Advertisement	907,401	(6	)		(3 Advertisement	)
Life insurance		7,996,899	Advertisement		7,962,115			7,872,033 Advertisement			7,877,943		Advertisement	7,931,808	2			1 Advertisement
Consumer and other		82,676	Advertisement		87,356			51,121 Advertisement			60,500		Advertisement	68,963	49			20 Advertisement
Total niche loans	$	18,703,735	Advertisement	$	18,416,044		$	17,828,574 Advertisement		$	17,539,102		$ Advertisement	17,357,381	9	%		8 Advertisement	%
				Advertisement								Advertisement
Total loans, net of unearned income Advertisement	$	47,067,447		$	44,675,531 Advertisement		$	43,230,706		$ Advertisement	42,131,831		$	41,446,032	16 Advertisement	%		14	%

^{(1) Annualized.}

TABLE 2: DEPOSIT PORTFOLIO MIX AND GROWTH RATES

					Advertisement											Advertisement				% Growth From
(Dollars in thousands)	Sep 30, 2024			Advertisement	Jun 30, 2024				Mar 31, 2024				Dec 31, 2023 Advertisement				Sep 30, 2023			Jun 30, 2024⁽¹⁾			Sep 30, 2023 Advertisement
Balance:								Advertisement									Advertisement
Non-interest-bearing	$ Advertisement	10,739,132			$	10,031,440 Advertisement			$	9,908,183	Advertisement		$	10,420,401		Advertisement	$	10,347,006		28	% Advertisement		4	%
NOW and interest-bearing demand deposits	Advertisement	5,466,932				5,053,909 Advertisement				5,720,947	Advertisement			5,797,649		Advertisement		6,006,114		33	Advertisement		(9	)
Wealth management deposits⁽²⁾	Advertisement	1,303,354				1,490,711 Advertisement				1,347,817	Advertisement			1,614,499		Advertisement		1,788,099		(50	) Advertisement		(27	)
Money market	Advertisement	17,713,726				16,320,017 Advertisement				15,617,717	Advertisement			15,149,215		Advertisement		14,478,504		34	Advertisement		22
Savings	Advertisement	6,183,249				5,882,179 Advertisement				5,959,774	Advertisement			5,790,334		Advertisement		5,584,294		20	Advertisement		11
Time certificates of deposit	Advertisement	9,998,573				9,270,770 Advertisement				7,894,420	Advertisement			6,625,072		Advertisement		6,788,669		31	Advertisement		47
Total deposits	$ Advertisement	51,404,966			$	48,049,026 Advertisement			$	46,448,858	Advertisement		$	45,397,170		Advertisement	$	44,992,686		28	% Advertisement		14	%
Mix:	Advertisement											Advertisement										Advertisement
Non-interest-bearing		21	% Advertisement			21	%	Advertisement		21	%		Advertisement	23	%			23 Advertisement	%
NOW and interest-bearing demand deposits Advertisement		11			Advertisement	11				12 Advertisement				13	Advertisement			13		Advertisement
Wealth management deposits⁽²⁾		3 Advertisement				3	Advertisement			3		Advertisement		4			Advertisement	4					Advertisement
Money market		34		Advertisement		34			Advertisement	34				33 Advertisement				32	Advertisement
Savings	Advertisement	12				12 Advertisement				13	Advertisement			13		Advertisement		13				Advertisement
Time certificates of deposit		19	Advertisement			19		Advertisement		17			Advertisement	14				15 Advertisement
Total deposits Advertisement		100	%		Advertisement	100	%			100 Advertisement	%			100	% Advertisement			100	%	Advertisement

^{(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 September 30, 2024

(Dollars in thousands) Advertisement		Total Time Certificates of Deposit			Weighted-Average Rate of Maturing Time Certificates of Deposit
1-3 months Advertisement		$	3,125,473		4.71 Advertisement	%
4-6 months			3,238,465 Advertisement		4.55
7-9 months	Advertisement		2,624,913		4.39	Advertisement
10-12 months			619,340	Advertisement	4.05
13-18 months		Advertisement	239,018		3.48
19-24 months Advertisement			89,361		2.82 Advertisement
24+ months			62,003 Advertisement		2.29
Total	Advertisement	$	9,998,573		4.47	% Advertisement

TABLE 4: QUARTERLY AVERAGE BALANCES

		Average Balance for three months ended,
Advertisement		Sep 30,				Jun 30,			Advertisement	Mar 31,				Dec 31,				Sep 30, Advertisement
(In thousands)		2024				2024 Advertisement				2024				2023			Advertisement	2023
Interest-bearing deposits with banks, securities purchased under resale agreements and cash equivalents⁽¹⁾		$	2,413,728 Advertisement			$	1,485,481	Advertisement		$	1,254,332		Advertisement	$	1,682,176			$ Advertisement	2,053,568
Investment securities⁽²⁾		Advertisement	8,276,576				8,203,764 Advertisement				8,349,796	Advertisement			7,971,068		Advertisement		7,706,285
FHLB and FRB stock	Advertisement		263,707			Advertisement	253,614				230,648 Advertisement				204,593	Advertisement			201,252
Liquidity management assets⁽³⁾ Advertisement		$	10,954,011		Advertisement	$	9,942,859			$ Advertisement	9,834,776			$	9,857,837 Advertisement			$	9,961,105	Advertisement
Other earning assets⁽³⁾⁽⁴⁾			17,542	Advertisement			15,257		Advertisement		15,081			Advertisement	14,821				17,879 Advertisement
Mortgage loans held-for-sale			376,251 Advertisement				347,236	Advertisement			290,275		Advertisement		279,569			Advertisement	319,099
Loans, net of unearned income⁽³⁾⁽⁵⁾		Advertisement	45,920,586				43,819,354 Advertisement				42,129,893	Advertisement			41,361,952		Advertisement		40,707,042
Total earning assets⁽³⁾	Advertisement	$	57,268,390			$ Advertisement	54,124,706			$	52,270,025 Advertisement			$	51,514,179	Advertisement		$	51,005,125
Allowance for loan and investment security losses Advertisement			(383,736	)	Advertisement		(360,504	)		Advertisement	(361,734	)			(329,441 Advertisement	)			(319,491	) Advertisement
Cash and due from banks			467,333	Advertisement			434,916		Advertisement		450,267			Advertisement	443,989				459,819 Advertisement
Other assets			3,563,296 Advertisement				3,294,066	Advertisement			3,244,137		Advertisement		3,388,348			Advertisement	3,236,528
Total assets		$ Advertisement	60,915,283			$	57,493,184 Advertisement			$	55,602,695	Advertisement		$	55,017,075		Advertisement	$	54,381,981
	Advertisement									Advertisement
NOW and interest-bearing demand deposits Advertisement		$	5,174,673		Advertisement	$	4,985,306			$ Advertisement	5,680,265			$	5,868,976 Advertisement			$	5,815,155	Advertisement
Wealth management deposits			1,362,747	Advertisement			1,531,865		Advertisement		1,510,203			Advertisement	1,704,099				1,512,765 Advertisement
Money market accounts			16,436,111 Advertisement				15,272,126	Advertisement			14,474,492		Advertisement		14,212,320			Advertisement	14,155,446
Savings accounts		Advertisement	6,096,746				5,878,844 Advertisement				5,792,118	Advertisement			5,676,155		Advertisement		5,472,535
Time deposits	Advertisement		9,598,109			Advertisement	8,546,172				7,148,456 Advertisement				6,645,980	Advertisement			6,495,906
Interest-bearing deposits Advertisement		$	38,668,386		Advertisement	$	36,214,313			$ Advertisement	34,605,534			$	34,107,530 Advertisement			$	33,451,807	Advertisement
Federal Home Loan Bank advances			3,178,973	Advertisement			3,096,920		Advertisement		2,728,849			Advertisement	2,326,073				2,241,292 Advertisement
Other borrowings			622,792 Advertisement				587,262	Advertisement			627,711		Advertisement		633,673			Advertisement	657,454
Subordinated notes		Advertisement	298,135				410,331 Advertisement				437,893	Advertisement			437,785		Advertisement		437,658
Junior subordinated debentures	Advertisement		253,566			Advertisement	253,566				253,566 Advertisement				253,566	Advertisement			253,566
Total interest-bearing liabilities Advertisement		$	43,021,852		Advertisement	$	40,562,392			$ Advertisement	38,653,553			$	37,758,627 Advertisement			$	37,041,777	Advertisement
Non-interest-bearing deposits			10,271,613	Advertisement			9,879,134		Advertisement		9,972,646			Advertisement	10,406,585				10,612,009 Advertisement
Other liabilities			1,631,389 Advertisement				1,601,485	Advertisement			1,536,039		Advertisement		1,785,667			Advertisement	1,644,312
Equity		Advertisement	5,990,429				5,450,173 Advertisement				5,440,457	Advertisement			5,066,196		Advertisement		5,083,883
Total liabilities and shareholders’ equity	Advertisement	$	60,915,283			$ Advertisement	57,493,184			$	55,602,695 Advertisement			$	55,017,075	Advertisement		$	54,381,981
Advertisement									Advertisement									Advertisement
Net free funds/contribution⁽⁶⁾		$	14,246,538	Advertisement		$	13,562,314		Advertisement	$	13,616,472			$ Advertisement	13,755,552			$	13,963,348 Advertisement

^{(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 18: 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

	Advertisement	Net Interest Income for three months ended,
		Sep 30,			Advertisement	Jun 30,				Mar 31,				Dec 31, Advertisement				Sep 30,
(In thousands)		2024 Advertisement				2024				2024			Advertisement	2023				2023
Interest income:	Advertisement									Advertisement
Interest-bearing deposits with banks, securities purchased under resale agreements and cash equivalents Advertisement		$	32,885		Advertisement	$	19,748			$ Advertisement	16,677			$	22,340 Advertisement			$	28,022	Advertisement
Investment securities			70,260	Advertisement			70,346		Advertisement		70,228			Advertisement	68,812				59,737 Advertisement
FHLB and FRB stock			5,451 Advertisement				4,974	Advertisement			4,478		Advertisement		3,792			Advertisement	3,896
Liquidity management assets⁽¹⁾		$ Advertisement	108,596			$	95,068 Advertisement			$	91,383	Advertisement		$	94,944		Advertisement	$	91,655
Other earning assets⁽¹⁾	Advertisement		282			Advertisement	235				198 Advertisement				222	Advertisement			291
Mortgage loans held-for-sale Advertisement			6,233		Advertisement		5,434			Advertisement	4,146				4,318 Advertisement				4,767	Advertisement
Loans, net of unearned income⁽¹⁾			796,637	Advertisement			752,117		Advertisement		712,587			Advertisement	697,093				668,183 Advertisement
Total interest income		$	911,748 Advertisement			$	852,854	Advertisement		$	808,314		Advertisement	$	796,577			$ Advertisement	764,896
		Advertisement											Advertisement
Interest expense:	Advertisement									Advertisement
NOW and interest-bearing demand deposits Advertisement		$	30,971		Advertisement	$	32,719			$ Advertisement	34,896			$	38,124 Advertisement			$	36,001	Advertisement
Wealth management deposits			10,158	Advertisement			10,294		Advertisement		10,461			Advertisement	12,076				9,350 Advertisement
Money market accounts			167,382 Advertisement				155,100	Advertisement			137,984		Advertisement		130,252			Advertisement	124,742
Savings accounts		Advertisement	42,892				41,063 Advertisement				39,071	Advertisement			36,463		Advertisement		31,784
Time deposits	Advertisement		110,616			Advertisement	96,527				77,120 Advertisement				68,475	Advertisement			60,906
Interest-bearing deposits Advertisement		$	362,019		Advertisement	$	335,703			$ Advertisement	299,532			$	285,390 Advertisement			$	262,783	Advertisement
Federal Home Loan Bank advances			26,254	Advertisement			24,797		Advertisement		22,048			Advertisement	18,316				17,436 Advertisement
Other borrowings			9,013 Advertisement				8,700	Advertisement			9,248		Advertisement		9,557			Advertisement	9,384
Subordinated notes		Advertisement	3,712				5,185 Advertisement				5,487	Advertisement			5,522		Advertisement		5,491
Junior subordinated debentures	Advertisement		5,023			Advertisement	4,984				5,004 Advertisement				5,089	Advertisement			4,948
Total interest expense Advertisement		$	406,021		Advertisement	$	379,369			$ Advertisement	341,319			$	323,874 Advertisement			$	300,042	Advertisement
						Advertisement											Advertisement
Less: Fully taxable-equivalent adjustment			(3,144 Advertisement	)			(2,875	) Advertisement			(2,801	)	Advertisement		(2,729	)		Advertisement	(2,496	)
Net interest income (GAAP)⁽²⁾		Advertisement	502,583				470,610 Advertisement				464,194	Advertisement			469,974		Advertisement		462,358
Fully taxable-equivalent adjustment	Advertisement		3,144			Advertisement	2,875				2,801 Advertisement				2,729	Advertisement			2,496
Net interest income, fully taxable-equivalent (non-GAAP)⁽²⁾ Advertisement		$	505,727		Advertisement	$	473,485			$ Advertisement	466,995			$	472,703 Advertisement			$	464,854	Advertisement

^{(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 18: 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, Advertisement
		Sep 30, 2024			Jun 30, 2024 Advertisement			Mar 31, 2024			Dec 31, 2023		Advertisement	Sep 30, 2023
Yield earned on:				Advertisement							Advertisement
Interest-bearing deposits with banks, securities purchased under resale agreements and cash equivalents		5.42 Advertisement	%		5.35	%	Advertisement	5.35	%		5.27	% Advertisement		5.41	%
Investment securities	Advertisement	3.38			3.45	Advertisement		3.38			3.42 Advertisement			3.08
FHLB and FRB stock Advertisement		8.22			7.89 Advertisement			7.81		Advertisement	7.35			7.68	Advertisement
Liquidity management assets		3.94	%	Advertisement	3.85	%		3.74	% Advertisement		3.82	%		3.65 Advertisement	%
Other earning assets		6.38	Advertisement		6.23			5.25 Advertisement			5.92		Advertisement	6.47
Mortgage loans held-for-sale		6.59 Advertisement			6.29		Advertisement	5.74			6.13	Advertisement		5.93
Loans, net of unearned income	Advertisement	6.90			6.90	Advertisement		6.80			6.69 Advertisement			6.51
Total earning assets Advertisement		6.33	%		6.34 Advertisement	%		6.22	%	Advertisement	6.13	%		5.95	% Advertisement
					Advertisement								Advertisement
Rate paid on:				Advertisement							Advertisement
NOW and interest-bearing demand deposits		2.38 Advertisement	%		2.64	%	Advertisement	2.47	%		2.58	% Advertisement		2.46	%
Wealth management deposits	Advertisement	2.97			2.70	Advertisement		2.79			2.81 Advertisement			2.45
Money market accounts Advertisement		4.05			4.08 Advertisement			3.83		Advertisement	3.64			3.50	Advertisement
Savings accounts		2.80		Advertisement	2.81			2.71	Advertisement		2.55			2.30 Advertisement
Time deposits		4.58	Advertisement		4.54			4.34 Advertisement			4.09		Advertisement	3.72
Interest-bearing deposits		3.72 Advertisement	%		3.73	%	Advertisement	3.48	%		3.32	% Advertisement		3.12	%
Federal Home Loan Bank advances	Advertisement	3.29			3.22	Advertisement		3.25			3.12 Advertisement			3.09
Other borrowings Advertisement		5.76			5.96 Advertisement			5.92		Advertisement	5.98			5.66	Advertisement
Subordinated notes		4.95		Advertisement	5.08			5.04	Advertisement		5.00			4.98 Advertisement
Junior subordinated debentures		7.88	Advertisement		7.91			7.94 Advertisement			7.96		Advertisement	7.74
Total interest-bearing liabilities		3.75 Advertisement	%		3.76	%	Advertisement	3.55	%		3.40	% Advertisement		3.21	%
	Advertisement							Advertisement
Interest rate spread⁽¹⁾⁽²⁾ Advertisement		2.58	%		2.58 Advertisement	%		2.67	%	Advertisement	2.73	%		2.74	% Advertisement
Less: Fully taxable-equivalent adjustment		(0.02	)	Advertisement	(0.02	)		(0.02	) Advertisement		(0.02	)		(0.02 Advertisement	)
Net free funds/contribution⁽³⁾		0.93	Advertisement		0.94			0.92 Advertisement			0.91		Advertisement	0.88
Net interest margin (GAAP)⁽²⁾		3.49 Advertisement	%		3.50	%	Advertisement	3.57	%		3.62	% Advertisement		3.60	%
Fully taxable-equivalent adjustment	Advertisement	0.02			0.02	Advertisement		0.02			0.02 Advertisement			0.02
Net interest margin, fully taxable-equivalent (non-GAAP)⁽²⁾ Advertisement		3.51	%		3.52 Advertisement	%		3.59	%	Advertisement	3.64	%		3.62	% Advertisement

^{(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 18: 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: YEAR-TO-DATE AVERAGE BALANCES, AND NET INTEREST INCOME AND MARGIN

Average Balance
fornine months ended,

Interest
fornine months ended,

Yield/Rate
fornine months ended,

(Dollars in thousands)

Sep 30,
2024

Sep 30,
2023

Sep 30,
2024

Sep 30,
2023

Sep 30,
2024

Sep 30,
2023

Interest-bearing deposits with banks, securities purchased under resale agreements and cash equivalents⁽¹⁾

1,720,387

1,584,120

69,310

58,443

5.38

4.93

Investment securities⁽²⁾

8,276,711

7,637,612

210,834

172,025

3.40

3.01

FHLB and FRB stock

249,375

219,442

14,903

11,120

7.98

6.77

Liquidity management assets⁽³⁾⁽⁴⁾

10,246,473

9,441,174

295,047

241,588

3.85

3.42

Other earning assets^(3)(4)(5)

15,966

17,906

715

876

5.98

6.54

Mortgage loans held-for-sale

338,061

299,426

15,813

12,473

6.25

5.57

Loans, net of unearned income^(3)(4)(6)

43,963,779

39,974,840

2,261,341

1,851,686

6.87

6.19

Total earning assets⁽⁴⁾

54,564,279

49,733,346

2,572,916

2,106,623

6.30

5.66

Allowance for loan and investment security losses

(368,713

)

(301,742

)

Cash and due from banks

450,899

476,490

Other assets

3,367,882

3,120,105

Total assets

58,014,347

53,028,199

NOW and interest-bearing demand deposits

5,279,697

5,544,488

98,586

83,949

2.49

2.02

Wealth management deposits

1,467,886

1,739,427

30,913

30,705

2.81

2.36

Money market accounts

15,398,045

13,480,887

460,466

299,649

3.99

2.97

Savings accounts

5,923,205

5,172,174

123,026

73,203

2.77

1.89

Time deposits

8,435,172

5,718,850

284,263

133,574

4.50

3.12

Interest-bearing deposits

36,504,005

31,655,826

997,254

621,080

3.65

2.62

Federal Home Loan Bank advances

3,002,228

2,313,571

73,099

53,970

3.25

3.12

Other borrowings

612,627

628,915

26,961

25,723

5.88

5.47

Subordinated notes

381,813

437,543

14,384

16,502

5.03

5.04

Junior subordinated debentures

253,566

253,566

15,011

14,101

7.91

7.44

Total interest-bearing liabilities

40,754,239

35,289,421

1,126,709

731,376

3.69

2.77

Non-interest-bearing deposits

10,041,972

11,224,841

Other liabilities

1,589,790

1,505,289

Equity

5,628,346

5,008,648

Total liabilities and shareholders’ equity

58,014,347

53,028,199

Interest rate spread⁽⁴⁾⁽⁷⁾

2.61

2.89

Less: Fully taxable-equivalent adjustment

(8,820

)

(7,357

)

(0.02

)

(0.02

)

Net free funds/contribution⁽⁸⁾

13,810,040

14,443,925

0.93

0.81

Net interest income/margin (GAAP)⁽⁴⁾

1,437,387

1,367,890

3.52

3.68

Fully taxable-equivalent adjustment

8,820

7,357

0.02

0.02

Net interest income/margin, fully taxable-equivalent (non-GAAP)⁽⁴⁾

1,446,207

1,375,247

3.54

3.70

^{(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)   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.}
^{(4)   See Table 18: Supplemental Non-GAAP Financial Measures/Ratios for additional information on this performance measure/ratio.}
^{(5)   Other earning assets include brokerage customer receivables and trading account securities.}
^{(6)   Loans, net of unearned income, include non-accrual loans.}
^{(7)   Interest rate spread is the difference between the yield earned on earning assets and the rate paid on interest-bearing liabilities.}
^{(8)   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 8: INTEREST RATE SENSITIVITY

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

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

Static Shock Scenario Advertisement		+200 Basis Points			+100 Basis Points		Advertisement	-100 Basis Points			-200 Basis Points
Sep 30, 2024	Advertisement	1.2	%		1.1	% Advertisement		0.4	%		(0.9 Advertisement	)%
Jun 30, 2024		1.5	Advertisement		1.0			0.6 Advertisement			(0.0	)
Mar 31, 2024 Advertisement		1.9			1.4 Advertisement			1.5		Advertisement	1.6
Dec 31, 2023		2.6 Advertisement			1.8		Advertisement	0.4			(0.7	) Advertisement
Sep 30, 2023		3.3		Advertisement	1.9			(2.0	) Advertisement		(5.2	)

Ramp Scenario	+200 Basis Points Advertisement			+100 Basis Points			-100 Basis Points		Advertisement	-200 Basis Points
Sep 30, 2024	1.6	%	Advertisement	1.2	%		0.7	% Advertisement		0.5	%
Jun 30, 2024	1.2 Advertisement			1.0		Advertisement	0.9			1.0	Advertisement
Mar 31, 2024	0.8			0.6 Advertisement			1.3		Advertisement	2.0
Dec 31, 2023	1.6	Advertisement		1.2			(0.3 Advertisement	)		(1.5	)
Sep 30, 2023 Advertisement	1.7			1.2	Advertisement		(0.5	)		(2.4 Advertisement	)

As shown above, the magnitude of potential changes in net interest income in various interest rate scenarios has continued to remain relatively neutral. Given the recent unprecedented rise in interest rates, the Company has made a conscious effort to reposition its exposure to changing interest rates given the uncertainty of the future interest rate environment. 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 9: MATURITIES AND SENSITIVITIES TO CHANGES IN INTEREST RATES

Loans repricing or contractual maturity period

As of September 30, 2024

One year or
less

From one to
five years

From five to fifteen years

After fifteen years

Total

(In thousands)

Commercial

Fixed rate

442,214

3,352,273

1,914,643

23,532

5,732,662

Variable rate

9,513,446

1,585

—

9,515,031

Total commercial

9,955,660

3,353,858

1,914,643

23,532

15,247,693

Commercial real estate

Fixed rate

570,054

2,866,473

420,951

55,521

3,912,999

Variable rate

8,868,451

11,899

—

8,880,418

Total commercial real estate

9,438,505

2,878,372

421,019

55,521

12,793,417

Home equity

Fixed rate

8,588

1,593

—

10,203

Variable rate

416,840

—

416,840

Total home equity

425,428

1,593

—

427,043

Residential real estate

Fixed rate

7,088

5,468

75,934

1,086,008

1,174,498

Variable rate

92,075

512,374

1,609,091

—

2,213,540

Total residential real estate

99,163

517,842

1,685,025

1,086,008

3,388,038

Premium finance receivables – property & casualty

Fixed rate

7,049,022

82,659

—

7,131,681

Variable rate

—

Total premium finance receivables – property & casualty

7,049,022

82,659

—

7,131,681

Premium finance receivables – life insurance

Fixed rate

160,090

444,534

4,000

4,654

613,278

Variable rate

7,383,621

—

7,383,621

Total premium finance receivables – life insurance

7,543,711

444,534

4,000

4,654

7,996,899

Consumer and other

Fixed rate

17,226

7,218

841

998

26,283

Variable rate

56,393

—

56,393

Total consumer and other

73,619

7,218

841

998

82,676

Total per category

Fixed rate

8,254,282

6,760,218

2,416,369

1,170,735

18,601,604

Variable rate

26,330,826

525,858

1,609,159

—

28,465,843

Total loans, net of unearned income

34,585,108

7,286,076

4,025,528

1,170,735

47,067,447

Less: Existing cash flow hedging derivatives

(6,000,000

)

Less: Cash flow hedging derivatives effective in Q4 2024

(700,000

)

Total loans repricing or maturing in one year or less, adjusted for cash flow hedging activity

27,885,108

Variable Rate Loan Pricing by Index:

SOFR tenors

17,155,288

12- month CMT

6,242,461

Prime

3,545,047

Fed Funds

951,119

Ameribor tenors

237,486

Other U.S. Treasury tenors

196,990

Other

137,452

Total variable rate

28,465,843

^{SOFR – Secured Overnight Financing Rate.}
^{CMT – Constant Maturity Treasury Rate.}
^{Ameribor – American Interbank Offered Rate.}

Graph available at the following link: http://ml.globenewswire.com/Resource/Download/9d3dafaf-55b5-40b8-9717-0f757fa58f36

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 $13.7 billion tied to one-month SOFR and $6.2 billion tied to twelve-month CMT. The above chart shows:

		Basis Point (bp) Change in Advertisement
		1-month SOFR			12- month CMT Advertisement			Prime
Third Quarter 2024	Advertisement	(49	)	bps	(111	) Advertisement	bps	(50	)	bps
Second Quarter 2024 Advertisement		1			6 Advertisement			0		Advertisement
First Quarter 2024		(2	)	Advertisement	24			0	Advertisement
Fourth Quarter 2023		3	Advertisement		(67	)		0 Advertisement
Third Quarter 2023		18 Advertisement			6		Advertisement	25

TABLE 10: ALLOWANCE FOR CREDIT LOSSES

Advertisement		Three Months Ended																			Nine Months Ended
	Advertisement	Sep 30,				Jun 30,				Mar 31, Advertisement				Dec 31,				Sep 30,			Sep 30, Advertisement				Sep 30,
(Dollars in thousands)		2024 Advertisement				2024				2024			Advertisement	2023				2023			2024			Advertisement	2023
Allowance for credit losses at beginning of period		$	437,560 Advertisement			$	427,504	Advertisement		$	427,612		Advertisement	$	399,531			$ Advertisement	387,786		$	427,612	Advertisement		$	357,936
Cumulative effect adjustment from the adoption of ASU 2022-02 Advertisement			—		Advertisement		—			Advertisement	—				— Advertisement				—	Advertisement		—			Advertisement	741
Provision for credit losses – Other		Advertisement	6,787				40,061 Advertisement				21,673	Advertisement			42,908		Advertisement		19,923			68,521 Advertisement				71,482	Advertisement
Provision for credit losses – Day 1 on non-PCD assets acquired during the period			15,547	Advertisement			—		Advertisement		—			Advertisement	—				— Advertisement			15,547		Advertisement		—
Initial allowance for credit losses recognized on PCD assets acquired during the period	Advertisement		3,004			Advertisement	—				— Advertisement				—	Advertisement			—		Advertisement	3,004				— Advertisement
Other adjustments			30 Advertisement				(19	) Advertisement			(31	)	Advertisement		62			Advertisement	(60	)		(20	) Advertisement			(15	)
Charge-offs: Advertisement									Advertisement									Advertisement
Commercial	Advertisement		22,975			Advertisement	9,584				11,215 Advertisement				5,114	Advertisement			2,427		Advertisement	43,774				10,599 Advertisement
Commercial real estate			95 Advertisement				15,526	Advertisement			5,469		Advertisement		5,386			Advertisement	1,713			21,090	Advertisement			9,842
Home equity Advertisement			—		Advertisement		—			Advertisement	74				— Advertisement				227	Advertisement		74			Advertisement	227
Residential real estate		Advertisement	—				23 Advertisement				38	Advertisement			114		Advertisement		78			61 Advertisement				78	Advertisement
Premium finance receivables – property & casualty			7,790	Advertisement			9,486		Advertisement		6,938			Advertisement	6,706				5,830 Advertisement			24,214		Advertisement		14,978
Premium finance receivables – life insurance	Advertisement		4			Advertisement	—				— Advertisement				—	Advertisement			18		Advertisement	4				173 Advertisement
Consumer and other			154 Advertisement				137	Advertisement			107		Advertisement		148			Advertisement	184			398	Advertisement			447
Total charge-offs Advertisement			31,018		Advertisement		34,756			Advertisement	23,841				17,468 Advertisement				10,477	Advertisement		89,615			Advertisement	36,344
Recoveries:		Advertisement											Advertisement											Advertisement
Commercial			649 Advertisement				950	Advertisement			479		Advertisement		592			Advertisement	1,162			2,078	Advertisement			2,059
Commercial real estate Advertisement			30		Advertisement		90			Advertisement	31				92 Advertisement				243	Advertisement		151			Advertisement	368
Home equity		Advertisement	101				35 Advertisement				29	Advertisement			34		Advertisement		33			165 Advertisement				105	Advertisement
Residential real estate			5	Advertisement			8		Advertisement		2			Advertisement	10				1 Advertisement			15		Advertisement		11
Premium finance receivables – property & casualty	Advertisement		3,436			Advertisement	3,658				1,519 Advertisement				1,820	Advertisement			906		Advertisement	8,613				3,110 Advertisement
Premium finance receivables – life insurance			41 Advertisement				5	Advertisement			8		Advertisement		7			Advertisement	—			54	Advertisement			9
Consumer and other Advertisement			21		Advertisement		24			Advertisement	23				24 Advertisement				14	Advertisement		68			Advertisement	69
Total recoveries		Advertisement	4,283				4,770 Advertisement				2,091	Advertisement			2,579		Advertisement		2,359			11,144 Advertisement				5,731	Advertisement
Net charge-offs			(26,735	) Advertisement			(29,986	)	Advertisement		(21,750	)		Advertisement	(14,889	)			(8,118 Advertisement	)		(78,471	)	Advertisement		(30,613	)
Allowance for credit losses at period end	Advertisement	$	436,193			$ Advertisement	437,560			$	427,504 Advertisement			$	427,612	Advertisement		$	399,531		$ Advertisement	436,193			$	399,531 Advertisement
					Advertisement									Advertisement											Advertisement
Annualized net charge-offs (recoveries) by category as a percentage of its own respective category’s average:
Commercial Advertisement			0.61	%	Advertisement		0.25	%		Advertisement	0.33	%			0.14 Advertisement	%			0.04	% Advertisement		0.41	%		Advertisement	0.09	%
Commercial real estate		Advertisement	0.00				0.53 Advertisement				0.19	Advertisement			0.19		Advertisement		0.05			0.23 Advertisement				0.12	Advertisement
Home equity			(0.10	) Advertisement			(0.04	)	Advertisement		0.05			Advertisement	(0.04	)			0.23 Advertisement			(0.03	)	Advertisement		0.05
Residential real estate	Advertisement		0.00			Advertisement	0.00				0.01 Advertisement				0.02	Advertisement			0.01		Advertisement	0.00				0.00 Advertisement
Premium finance receivables – property & casualty			0.24 Advertisement				0.33	Advertisement			0.32		Advertisement		0.29			Advertisement	0.29			0.30	Advertisement			0.26
Premium finance receivables – life insurance Advertisement			0.00		Advertisement		(0.00	)		Advertisement	(0.00	)			(0.00 Advertisement	)			0.00	Advertisement		(0.00	)		Advertisement	0.00
Consumer and other		Advertisement	0.63				0.56 Advertisement				0.42	Advertisement			0.58		Advertisement		0.65			0.54 Advertisement				0.60	Advertisement
Total loans, net of unearned income			0.23	% Advertisement			0.28	%	Advertisement		0.21	%		Advertisement	0.14	%			0.08 Advertisement	%		0.24		Advertisement		0.10	%
	Advertisement									Advertisement											Advertisement
Loans at period end		$ Advertisement	47,067,447			$	44,675,531 Advertisement			$	43,230,706	Advertisement		$	42,131,831		Advertisement	$	41,446,032					Advertisement
Allowance for loan losses as a percentage of loans at period end			0.77 Advertisement	%			0.81	% Advertisement			0.81	%	Advertisement		0.82	%		Advertisement	0.76	%					Advertisement
Allowance for loan and unfunded lending-related commitment losses as a percentage of loans at period end			0.93	Advertisement			0.98		Advertisement		0.99			Advertisement	1.01				0.96 Advertisement

TABLE 11: ALLOWANCE AND PROVISION FOR CREDIT LOSSES BY COMPONENT

		Three Months Ended																			Nine Months Ended
Advertisement		Sep 30,				Jun 30,			Advertisement	Mar 31,				Dec 31,				Sep 30, Advertisement			Sep 30,				Sep 30,
(In thousands)	Advertisement	2024				2024				2024 Advertisement				2023				2023			2024 Advertisement				2023
Provision for loan losses – Other		$ Advertisement	6,782			$	45,111 Advertisement			$	26,159	Advertisement		$	44,023		Advertisement	$	20,717		$	78,052 Advertisement			$	74,753	Advertisement
Provision for credit losses – Day 1 on non-PCD assets acquired during the period			15,547	Advertisement			—		Advertisement		—			Advertisement	—				— Advertisement			15,547		Advertisement		—
Provision for unfunded lending-related commitments losses – Other	Advertisement		17			Advertisement	(5,212	)			(4,468 Advertisement	)			(1,081	) Advertisement			(769	)	Advertisement	(9,663	)			(3,164 Advertisement	)
Provision for held-to-maturity securities losses			(12 Advertisement	)			162	Advertisement			(18	)	Advertisement		(34	)		Advertisement	(25	)		132	Advertisement			(107	)
Provision for credit losses Advertisement		$	22,334		Advertisement	$	40,061			$ Advertisement	21,673			$	42,908 Advertisement			$	19,923	Advertisement	$	84,068			$ Advertisement	71,482
		Advertisement											Advertisement											Advertisement
Allowance for loan losses		$	360,279 Advertisement			$	363,719	Advertisement		$	348,612		Advertisement	$	344,235			$ Advertisement	315,039						Advertisement
Allowance for unfunded lending-related commitments losses			75,435	Advertisement			73,350		Advertisement		78,563			Advertisement	83,030				84,111 Advertisement
Allowance for loan losses and unfunded lending-related commitments losses Advertisement			435,714		Advertisement		437,069			Advertisement	427,175				427,265 Advertisement				399,150	Advertisement
Allowance for held-to-maturity securities losses	Advertisement		479			Advertisement	491				329 Advertisement				347	Advertisement			381		Advertisement
Allowance for credit losses		$ Advertisement	436,193			$	437,560 Advertisement			$	427,504	Advertisement		$	427,612		Advertisement	$	399,531					Advertisement

TABLE 12: ALLOWANCE BY LOAN PORTFOLIO

The table below summarizes the calculation of allowance for loan losses and allowance for unfunded lending-related commitments losses for the Company’s loan portfolios as well as core and niche portfolios, as of September 30, 2024, June 30, 2024 and March 31, 2024.

As of Sep 30, 2024

As of Jun 30, 2024

As of Mar 31, 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

15,247,693

171,598

1.13

14,154,462

181,991

1.29

13,503,481

166,518

1.23

Commercial real estate:

Construction and development

2,403,690

97,949

4.07

2,260,551

93,154

4.12

2,150,314

96,052

4.47

Non-construction

10,389,727

133,195

1.28

9,686,646

130,574

1.35

9,483,123

130,000

1.37

Home equity

427,043

8,823

2.07

356,313

7,242

2.03

340,349

7,191

2.11

Residential real estate

3,388,038

9,745

0.29

3,067,335

8,773

0.29

2,890,266

13,701

0.47

Premium finance receivables

Property and casualty insurance

7,131,681

13,045

0.18

7,100,753

14,053

0.20

6,940,019

12,645

0.18

Life insurance

7,996,899

698

0.01

7,962,115

693

0.01

7,872,033

685

0.01

Consumer and other

82,676

661

0.80

87,356

589

0.67

51,121

383

0.75

Total loans, net of unearned income

47,067,447

435,714

0.93

44,675,531

437,069

0.98

43,230,706

427,175

0.99

Total core loans⁽¹⁾

28,363,712

396,394

1.40

26,259,487

398,494

1.52

25,402,132

382,372

1.51

Total niche loans⁽¹⁾

18,703,735

39,320

0.21

18,416,044

38,575

0.21

17,828,574

44,803

0.25

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

TABLE 13: LOAN PORTFOLIO AGING

(In thousands)		Sep 30, 2024			Jun 30, 2024 Advertisement			Mar 31, 2024			Dec 31, 2023		Advertisement	Sep 30, 2023
Loan Balances:				Advertisement							Advertisement
Commercial		Advertisement								Advertisement
Nonaccrual	Advertisement	$	63,826		$	51,087 Advertisement		$	31,740		$ Advertisement	38,940		$	43,569
90+ days and still accruing Advertisement			20		Advertisement	304			27	Advertisement		98			200 Advertisement
60-89 days past due			32,560	Advertisement		16,485			30,248 Advertisement			19,488		Advertisement	22,889
30-59 days past due			46,057 Advertisement			36,358		Advertisement	77,715			85,743	Advertisement		35,681
Current		Advertisement	15,105,230			14,050,228	Advertisement		13,363,751			12,687,784 Advertisement			12,623,134
Total commercial	Advertisement	$	15,247,693		$	14,154,462 Advertisement		$	13,503,481		$ Advertisement	12,832,053		$	12,725,473
Commercial real estate Advertisement							Advertisement							Advertisement
Nonaccrual		$	42,071	Advertisement	$	48,289		$	39,262 Advertisement		$	35,459		$ Advertisement	17,043
90+ days and still accruing			225 Advertisement			—		Advertisement	—			—	Advertisement		1,092
60-89 days past due		Advertisement	13,439			6,555	Advertisement		16,713			8,515 Advertisement			7,395
30-59 days past due	Advertisement		48,346			38,065 Advertisement			32,998		Advertisement	20,634			60,984
Current Advertisement			12,689,336		Advertisement	11,854,288			11,544,464	Advertisement		11,279,556			10,859,666 Advertisement
Total commercial real estate		$	12,793,417	Advertisement	$	11,947,197		$	11,633,437 Advertisement		$	11,344,164		$ Advertisement	10,946,180
Home equity				Advertisement							Advertisement
Nonaccrual		$ Advertisement	1,122		$	1,100	Advertisement	$	838		$	1,341 Advertisement		$	1,363
90+ days and still accruing	Advertisement		—			— Advertisement			—		Advertisement	—			—
60-89 days past due Advertisement			1,035		Advertisement	275			212	Advertisement		62			219 Advertisement
30-59 days past due			2,580	Advertisement		1,229			1,617 Advertisement			2,263		Advertisement	1,668
Current			422,306 Advertisement			353,709		Advertisement	337,682			340,310	Advertisement		340,008
Total home equity		$ Advertisement	427,043		$	356,313	Advertisement	$	340,349		$	343,976 Advertisement		$	343,258
Residential real estate	Advertisement							Advertisement
Early buy-out loans guaranteed by U.S. government agencies⁽¹⁾ Advertisement		$	135,389		$ Advertisement	134,178		$	143,350	Advertisement	$	150,583		$	168,973 Advertisement
Nonaccrual			17,959	Advertisement		18,198			17,901 Advertisement			15,391		Advertisement	16,103
90+ days and still accruing			— Advertisement			—		Advertisement	—			—	Advertisement		—
60-89 days past due		Advertisement	6,364			1,977	Advertisement		—			2,325 Advertisement			1,145
30-59 days past due	Advertisement		2,160			130 Advertisement			24,523		Advertisement	22,942			904
Current Advertisement			3,226,166		Advertisement	2,912,852			2,704,492	Advertisement		2,578,425			2,520,478 Advertisement
Total residential real estate		$	3,388,038	Advertisement	$	3,067,335		$	2,890,266 Advertisement		$	2,769,666		$ Advertisement	2,707,603
Premium finance receivables – property & casualty				Advertisement							Advertisement
Nonaccrual		$ Advertisement	36,079		$	32,722	Advertisement	$	32,648		$	27,590 Advertisement		$	26,756
90+ days and still accruing	Advertisement		18,235			22,427 Advertisement			25,877		Advertisement	20,135			16,253
60-89 days past due Advertisement			18,740		Advertisement	29,925			15,274	Advertisement		23,236			16,552 Advertisement
30-59 days past due			30,204	Advertisement		45,927			59,729 Advertisement			50,437		Advertisement	31,919
Current			7,028,423 Advertisement			6,969,752		Advertisement	6,806,491			6,782,131	Advertisement		6,631,267
Total Premium finance receivables – property & casualty		$ Advertisement	7,131,681		$	7,100,753	Advertisement	$	6,940,019		$	6,903,529 Advertisement		$	6,722,747
Premium finance receivables – life insurance	Advertisement							Advertisement
Nonaccrual Advertisement		$	—		$ Advertisement	—		$	—	Advertisement	$	—		$	— Advertisement
90+ days and still accruing			—	Advertisement		—			— Advertisement			—		Advertisement	10,679
60-89 days past due			10,902 Advertisement			4,118		Advertisement	32,482			16,206	Advertisement		41,894
30-59 days past due		Advertisement	74,432			17,693	Advertisement		100,137			45,464 Advertisement			14,972
Current	Advertisement		7,911,565			7,940,304 Advertisement			7,739,414		Advertisement	7,816,273			7,864,263
Total Premium finance receivables – life insurance Advertisement		$	7,996,899		$ Advertisement	7,962,115		$	7,872,033	Advertisement	$	7,877,943		$	7,931,808 Advertisement
Consumer and other					Advertisement								Advertisement
Nonaccrual		$	2 Advertisement		$	3		$ Advertisement	19		$	22	Advertisement	$	16
90+ days and still accruing		Advertisement	148			121	Advertisement		47			54 Advertisement			27
60-89 days past due	Advertisement		22			81 Advertisement			16		Advertisement	25			196
30-59 days past due Advertisement			264		Advertisement	366			210	Advertisement		165			519 Advertisement
Current			82,240	Advertisement		86,785			50,829 Advertisement			60,234		Advertisement	68,205
Total consumer and other		$	82,676 Advertisement		$	87,356		$ Advertisement	51,121		$	60,500	Advertisement	$	68,963
Total loans, net of unearned income		Advertisement								Advertisement
Early buy-out loans guaranteed by U.S. government agencies⁽¹⁾	Advertisement	$	135,389		$	134,178 Advertisement		$	143,350		$ Advertisement	150,583		$	168,973
Nonaccrual Advertisement			161,059		Advertisement	151,399			122,408	Advertisement		118,743			104,850 Advertisement
90+ days and still accruing			18,628	Advertisement		22,852			25,951 Advertisement			20,287		Advertisement	28,251
60-89 days past due			83,062 Advertisement			59,416		Advertisement	94,945			69,857	Advertisement		90,290
30-59 days past due		Advertisement	204,043			139,768	Advertisement		296,929			227,648 Advertisement			146,647
Current	Advertisement		46,465,266			44,167,918 Advertisement			42,547,123		Advertisement	41,544,713			40,907,021
Total loans, net of unearned income Advertisement		$	47,067,447		$ Advertisement	44,675,531		$	43,230,706	Advertisement	$	42,131,831		$	41,446,032 Advertisement

^{(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 14: NON-PERFORMING ASSETS⁽¹⁾

	Sep 30,			Advertisement	Jun 30,			Mar 31,				Dec 31, Advertisement			Sep 30,
(Dollars in thousands)	2024			Advertisement	2024			2024				2023 Advertisement			2023
Loans past due greater than 90 days and still accruing:				Advertisement								Advertisement
Commercial	$	20 Advertisement			$	304	Advertisement	$	27		Advertisement	$	98		$ Advertisement	200
Commercial real estate		225 Advertisement				—	Advertisement		—		Advertisement		—		Advertisement	1,092
Home equity		— Advertisement				—	Advertisement		—		Advertisement		—		Advertisement	—
Residential real estate		— Advertisement				—	Advertisement		—		Advertisement		—		Advertisement	—
Premium finance receivables – property & casualty		18,235 Advertisement				22,427	Advertisement		25,877		Advertisement		20,135		Advertisement	16,253
Premium finance receivables – life insurance		— Advertisement				—	Advertisement		—		Advertisement		—		Advertisement	10,679
Consumer and other		148 Advertisement				121	Advertisement		47		Advertisement		54		Advertisement	27
Total loans past due greater than 90 days and still accruing		18,628 Advertisement				22,852	Advertisement		25,951		Advertisement		20,287		Advertisement	28,251
Non-accrual loans:				Advertisement								Advertisement
Commercial		63,826 Advertisement				51,087	Advertisement		31,740		Advertisement		38,940		Advertisement	43,569
Commercial real estate		42,071 Advertisement				48,289	Advertisement		39,262		Advertisement		35,459		Advertisement	17,043
Home equity		1,122 Advertisement				1,100	Advertisement		838		Advertisement		1,341		Advertisement	1,363
Residential real estate		17,959 Advertisement				18,198	Advertisement		17,901		Advertisement		15,391		Advertisement	16,103
Premium finance receivables – property & casualty		36,079 Advertisement				32,722	Advertisement		32,648		Advertisement		27,590		Advertisement	26,756
Premium finance receivables – life insurance		— Advertisement				—	Advertisement		—		Advertisement		—		Advertisement	—
Consumer and other		2 Advertisement				3	Advertisement		19		Advertisement		22		Advertisement	16
Total non-accrual loans		161,059 Advertisement				151,399	Advertisement		122,408		Advertisement		118,743		Advertisement	104,850
Total non-performing loans:				Advertisement								Advertisement
Commercial		63,846 Advertisement				51,391	Advertisement		31,767		Advertisement		39,038		Advertisement	43,769
Commercial real estate		42,296 Advertisement				48,289	Advertisement		39,262		Advertisement		35,459		Advertisement	18,135
Home equity		1,122 Advertisement				1,100	Advertisement		838		Advertisement		1,341		Advertisement	1,363
Residential real estate		17,959 Advertisement				18,198	Advertisement		17,901		Advertisement		15,391		Advertisement	16,103
Premium finance receivables – property & casualty		54,314 Advertisement				55,149	Advertisement		58,525		Advertisement		47,725		Advertisement	43,009
Premium finance receivables – life insurance		— Advertisement				—	Advertisement		—		Advertisement		—		Advertisement	10,679
Consumer and other		150 Advertisement				124	Advertisement		66		Advertisement		76		Advertisement	43
Total non-performing loans	$	179,687 Advertisement			$	174,251	Advertisement	$	148,359		Advertisement	$	139,030		$ Advertisement	133,101
Other real estate owned		13,682 Advertisement				19,731	Advertisement		14,538		Advertisement		13,309		Advertisement	14,060
Total non-performing assets	$	193,369 Advertisement			$	193,982	Advertisement	$	162,897		Advertisement	$	152,339		$ Advertisement	147,161
Total non-performing loans by category as a percent of its own respective category’s period-end balance:				Advertisement								Advertisement
Commercial		0.42 Advertisement	%			0.36	% Advertisement		0.24	%	Advertisement		0.30	%	Advertisement	0.34	%
Commercial real estate		0.33 Advertisement				0.40	Advertisement		0.34		Advertisement		0.31		Advertisement	0.17
Home equity		0.26 Advertisement				0.31	Advertisement		0.25		Advertisement		0.39		Advertisement	0.40
Residential real estate		0.53 Advertisement				0.59	Advertisement		0.62		Advertisement		0.56		Advertisement	0.59
Premium finance receivables – property & casualty		0.76 Advertisement				0.78	Advertisement		0.84		Advertisement		0.69		Advertisement	0.64
Premium finance receivables – life insurance		— Advertisement				—	Advertisement		—		Advertisement		—		Advertisement	0.13
Consumer and other		0.18 Advertisement				0.14	Advertisement		0.13		Advertisement		0.13		Advertisement	0.06
Total loans, net of unearned income		0.38 Advertisement	%			0.39	% Advertisement		0.34	%	Advertisement		0.33	%	Advertisement	0.32	%
Total non-performing assets as a percentage of total assets		0.30 Advertisement	%			0.32	% Advertisement		0.28	%	Advertisement		0.27	%	Advertisement	0.26	%
Allowance for loan losses and unfunded lending-related commitments losses as a percentage of non-accrual loans		270.53 Advertisement	%			288.69	% Advertisement		348.98	%	Advertisement		359.82	%	Advertisement	380.69	%
				Advertisement								Advertisement

^{(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

Advertisement	Three Months Ended																			Nine Months Ended
	Sep 30,			Advertisement	Jun 30,				Mar 31,				Dec 31, Advertisement				Sep 30,			Sep 30,				Sep 30, Advertisement
(In thousands)	2024				2024			Advertisement	2024				2023				2023 Advertisement			2024				2023
	Advertisement											Advertisement											Advertisement
Balance at beginning of period	$	174,251	Advertisement		$	148,359		Advertisement	$	139,030			$ Advertisement	133,101			$	108,712 Advertisement		$	139,030		Advertisement	$	100,697
Additions from becoming non-performing in the respective period	Advertisement	42,335				54,376 Advertisement				23,142	Advertisement			59,010		Advertisement		18,666			96,711 Advertisement				64,367	Advertisement
Additions from assets acquired in the respective period		189		Advertisement		—			Advertisement	—				— Advertisement				—	Advertisement		189			Advertisement	—
Return to performing status		(362 Advertisement	)			(912	) Advertisement			(490	)	Advertisement		(24,469	)		Advertisement	(1,702	)		(1,274	) Advertisement			(2,542	)
Payments received Advertisement		(10,894	)		Advertisement	(9,611	)			(8,336 Advertisement	)			(10,000	) Advertisement			(6,488	)	Advertisement	(20,505	)			(24,063 Advertisement	)
Transfer to OREO and other repossessed assets		(3,680	) Advertisement			(6,945	)	Advertisement		(1,381	)		Advertisement	(2,623	)			(2,671 Advertisement	)		(10,625	)	Advertisement		(5,629	)
Charge-offs, net	Advertisement	(21,211	)			(7,673 Advertisement	)			(14,810	) Advertisement			(9,480	)	Advertisement		(3,011	)		(28,884 Advertisement	)			(6,866	) Advertisement
Net change for premium finance receivables		(941	)	Advertisement		(3,343	)		Advertisement	11,204				(6,509 Advertisement	)			19,595	Advertisement		(4,284	)		Advertisement	7,137
Balance at end of period	$	179,687 Advertisement			$	174,251	Advertisement		$	148,359		Advertisement	$	139,030			$ Advertisement	133,101		$	170,358	Advertisement		$	133,101

Other Real Estate Owned

	Three Months Ended
	Sep 30,			Advertisement	Jun 30,			Mar 31,				Dec 31, Advertisement			Sep 30,
(In thousands)	2024			Advertisement	2024			2024				2023 Advertisement			2023
Balance at beginning of period	$	19,731 Advertisement			$	14,538	Advertisement	$	13,309		Advertisement	$	14,060		$ Advertisement	11,586
Disposals/resolved		(9,729 Advertisement	)			(1,752	) Advertisement		—		Advertisement		(3,416	)	Advertisement	(467	)
Transfers in at fair value, less costs to sell		3,680 Advertisement				6,945	Advertisement		1,436		Advertisement		2,665		Advertisement	2,941
Fair value adjustments		— Advertisement				—	Advertisement		(207	)	Advertisement		—		Advertisement	—
Balance at end of period	$	13,682 Advertisement			$	19,731	Advertisement	$	14,538		Advertisement	$	13,309		$ Advertisement	14,060
				Advertisement								Advertisement
	Period End
Advertisement	Sep 30,				Jun 30,			Mar 31, Advertisement				Dec 31,			Sep 30,
Balance by Property Type: Advertisement	2024				2024			2024 Advertisement				2023			2023
Residential real estate Advertisement	$	—			$ Advertisement	161		$	1,146 Advertisement			$	720	Advertisement	$	441
Commercial real estate Advertisement		13,682			Advertisement	19,570			13,392 Advertisement				12,589	Advertisement		13,619
Total Advertisement	$	13,682			$ Advertisement	19,731		$	14,538 Advertisement			$	13,309	Advertisement	$	14,060

TABLE 15: NON-INTEREST INCOME

	Three Months Ended																				Q3 2024 compared to Q2 2024						Advertisement	Q3 2024 compared to Q3 2023
	Sep 30,				Jun 30, Advertisement				Mar 31,				Dec 31,			Advertisement	Sep 30,				Q3 2024 compared to Q2 2024							Q3 2024 compared to Q3 2023
(Dollars in thousands)	2024 Advertisement				2024				2024			Advertisement	2023				2023				$ Change Advertisement				% Change			$ Change			Advertisement	% Change
Brokerage	$	6,139	Advertisement		$	5,588		Advertisement	$	5,556			$ Advertisement	5,349			$	4,359 Advertisement			$	551	Advertisement		10	%		$ Advertisement	1,780			41	% Advertisement
Trust and asset management		31,085		Advertisement		29,825			Advertisement	29,259				27,926 Advertisement				29,170	Advertisement			1,260		Advertisement	4				1,915 Advertisement			7
Total wealth management Advertisement		37,224			Advertisement	35,413				34,815 Advertisement				33,275	Advertisement			33,529		Advertisement		1,811			5 Advertisement				3,695	Advertisement		11
Mortgage banking	Advertisement	15,974				29,124 Advertisement				27,663	Advertisement			7,433		Advertisement		27,395			Advertisement	(13,150	)		(45	) Advertisement			(11,421	)	Advertisement	(42	)
Service charges on deposit accounts		16,430 Advertisement				15,546	Advertisement			14,811		Advertisement		14,522			Advertisement	14,217				884 Advertisement			6		Advertisement		2,213			16 Advertisement
Gains (losses) on investment securities, net		3,189	Advertisement			(4,282	)	Advertisement		1,326			Advertisement	2,484				(2,357 Advertisement	)			7,471	Advertisement		NM				5,546 Advertisement			NM
Fees from covered call options	Advertisement	988				2,056 Advertisement				4,847	Advertisement			4,679		Advertisement		4,215			Advertisement	(1,068	)		(52	) Advertisement			(3,227	)	Advertisement	(77	)
Trading (losses) gains, net		(130 Advertisement	)			70	Advertisement			677		Advertisement		(505	)		Advertisement	728				(200 Advertisement	)		NM			Advertisement	(858	)		NM
Operating lease income, net Advertisement		15,335			Advertisement	13,938				14,110 Advertisement				14,162	Advertisement			13,863		Advertisement		1,397			10 Advertisement				1,472	Advertisement		11
Other:	Advertisement											Advertisement									Advertisement										Advertisement
Interest rate swap fees		2,914	Advertisement			3,392		Advertisement		2,828			Advertisement	4,021				2,913 Advertisement				(478	) Advertisement		(14	)		Advertisement	1			—	Advertisement
BOLI		1,517		Advertisement		1,351			Advertisement	1,651				1,747 Advertisement				729	Advertisement			166		Advertisement	12				788 Advertisement			NM
Administrative services	Advertisement	1,450				1,322 Advertisement				1,217	Advertisement			1,329		Advertisement		1,336			Advertisement	128			10	Advertisement			114		Advertisement	9
Foreign currency remeasurement gains (losses)		696 Advertisement				(145	) Advertisement			(1,171	)	Advertisement		1,150			Advertisement	(446	)			841 Advertisement			NM			Advertisement	1,142			NM
Changes in fair value on EBOs and loans held-for-investment Advertisement		518			Advertisement	604				(439 Advertisement	)			1,556	Advertisement			(338	)	Advertisement		(86	)		(14 Advertisement	)			856	Advertisement		NM
Early pay-offs of capital leases		532 Advertisement				393	Advertisement			430		Advertisement		157			Advertisement	461				139 Advertisement			35		Advertisement		71			15 Advertisement
Miscellaneous		16,510	Advertisement			22,365		Advertisement		37,815			Advertisement	14,819				16,233 Advertisement				(5,855	) Advertisement		(26	)		Advertisement	277			2	Advertisement
Total Other		24,137		Advertisement		29,282			Advertisement	42,331				24,779 Advertisement				20,888	Advertisement			(5,145	)	Advertisement	(18	)			3,249 Advertisement			16
Total Non-Interest Income Advertisement	$	113,147			$ Advertisement	121,147			$	140,580 Advertisement			$	100,829	Advertisement		$	112,478		Advertisement	$	(8,000	)		(7) % Advertisement			$	669		Advertisement	1	%

Nine Months Ended

Sep 30,

Sep 30,

(Dollars in thousands)

2024

2023

Change

Brokerage

17,283

13,296

3,987

Trust and asset management

90,169

84,036

6,133

Total wealth management

107,452

97,332

10,120

Mortgage banking

72,761

75,640

(2,879

)

Service charges on deposit accounts

46,787

40,728

6,059

Gains (losses) on investment securities, net

233

(959

)

1,192

Fees from covered call options

7,891

17,184

(9,293

)

(54

)

Trading gains, net

617

1,647

(1,030

)

(63

)

Operating lease income, net

43,383

39,136

4,247

Other:

Interest rate swap fees

9,134

8,230

904

BOLI

4,519

3,402

1,117

Administrative services

3,989

4,270

(281

)

Foreign currency remeasurement losses

(620

)

(91

)

(529

)

Changes in fair value on EBOs and loans held-for-investment

683

(35

)

718

Early pay-offs of capital leases

1,355

1,027

328

Miscellaneous

76,690

45,766

30,924

Total Other

95,750

62,569

33,181

Total Non-Interest Income

374,874

333,277

41,597

^{NM – Not meaningful.
BOLI – Bank-owned life insurance.}

TABLE 16: MORTGAGE BANKING

	Three Months Ended																			Nine Months Ended
(Dollars in thousands) Advertisement	Sep 30, 2024				Jun 30, 2024				Mar 31, 2024 Advertisement				Dec 31, 2023				Sep 30, 2023			Sep 30, 2024 Advertisement				Sep 30, 2023
Originations:				Advertisement									Advertisement											Advertisement
Retail originations	$	527,408		Advertisement	$	544,394			$ Advertisement	331,504			$	315,637 Advertisement			$	408,761	Advertisement	$	1,403,306			$ Advertisement	1,071,786
Veterans First originations		239,369 Advertisement				177,792	Advertisement			144,109		Advertisement		123,564			Advertisement	163,856			561,270	Advertisement			451,218
Total originations for sale (A) Advertisement	$	766,777			$ Advertisement	722,186			$	475,613 Advertisement			$	439,201	Advertisement		$	572,617		$ Advertisement	1,964,576			$	1,523,004 Advertisement
Originations for investment		218,984	Advertisement			275,331		Advertisement		169,246			Advertisement	124,974				137,622 Advertisement			663,561		Advertisement		453,597
Total originations	$ Advertisement	985,761			$	997,517 Advertisement			$	644,859	Advertisement		$	564,175		Advertisement	$	710,239		$	2,628,137 Advertisement			$	1,976,601	Advertisement
As a percentage of originations for sale:								Advertisement									Advertisement
Retail originations	Advertisement	69	%			75 Advertisement	%			70	% Advertisement			72	%	Advertisement		71	%		71 Advertisement	%			70	% Advertisement
Veterans First originations		31		Advertisement		25			Advertisement	30				28 Advertisement				29	Advertisement		29			Advertisement	30
Purchases		72 Advertisement	%			83	% Advertisement			75	%	Advertisement		85	%		Advertisement	84	%		78	% Advertisement			83	%
Refinances Advertisement		28			Advertisement	17				25 Advertisement				15	Advertisement			16		Advertisement	22				17 Advertisement
Production Margin:					Advertisement											Advertisement
Production revenue (B)⁽¹⁾ Advertisement	$	13,113			$ Advertisement	14,990			$	13,435 Advertisement			$	6,798	Advertisement		$	13,766		$ Advertisement	41,538			$	34,233 Advertisement
Total originations for sale (A)	$	766,777	Advertisement		$	722,186		Advertisement	$	475,613			$ Advertisement	439,201			$	572,617 Advertisement		$	1,964,576		Advertisement	$	1,523,004
Add: Current period end mandatory interest rate lock commitments to fund originations for sale⁽²⁾	Advertisement	272,072				222,738 Advertisement				207,775	Advertisement			119,624		Advertisement		150,713			272,072 Advertisement				150,713	Advertisement
Less: Prior period end mandatory interest rate lock commitments to fund originations for sale⁽²⁾		222,738		Advertisement		207,775			Advertisement	119,624				150,713 Advertisement				196,246	Advertisement		119,624			Advertisement	113,303
Total mortgage production volume (C)	$	816,111 Advertisement			$	737,149	Advertisement		$	563,764		Advertisement	$	408,112			$ Advertisement	527,084		$	2,117,024	Advertisement		$	1,560,414
Production margin (B / C) Advertisement		1.61	%		Advertisement	2.03	%			2.38 Advertisement	%			1.67	% Advertisement			2.61	%	Advertisement	1.96	%			2.19 Advertisement	%
Mortgage Servicing:					Advertisement											Advertisement
Loans serviced for others (D) Advertisement	$	12,253,361			$ Advertisement	12,211,027			$	12,051,392 Advertisement			$	12,007,165	Advertisement		$	11,885,531		Advertisement
MSRs, at fair value (E)		186,308 Advertisement				204,610	Advertisement			201,044		Advertisement		192,456			Advertisement	210,524						Advertisement
Percentage of MSRs to loans serviced for others (E / D)		1.52	%	Advertisement		1.68	%		Advertisement	1.67	%			1.60 Advertisement	%			1.77	% Advertisement
Servicing income	$ Advertisement	10,809			$	10,586 Advertisement			$	10,498	Advertisement		$	10,286		Advertisement	$	10,191		$	31,893 Advertisement			$	33,277	Advertisement
Components of MSR:								Advertisement									Advertisement
MSR – changes in fair value model assumptions	$ Advertisement	(17,331	)		$	877 Advertisement			$	7,595	Advertisement		$	(19,634	)	Advertisement	$	4,723		$	(8,859 Advertisement	)		$	485	Advertisement
Changes in fair value of derivative contract held as an economic hedge, net		6,892		Advertisement		(772	)		Advertisement	(2,577	)			3,541 Advertisement				(2,481	) Advertisement		3,543			Advertisement	(2,261	)
MSR – current period capitalization		6,357 Advertisement				8,223	Advertisement			5,379		Advertisement		5,077			Advertisement	9,706			19,959	Advertisement			23,533
MSR – collection of expected cash flows – paydowns Advertisement		(1,598	)		Advertisement	(1,504	)			(1,444 Advertisement	)			(1,572	) Advertisement			(1,492	)	Advertisement	(4,546	)			(4,712 Advertisement	)
MSR – collection of expected cash flows – payoffs and repurchases		(5,730	) Advertisement			(4,030	)	Advertisement		(2,942	)		Advertisement	(1,939	)			(3,105 Advertisement	)		(12,702	)	Advertisement		(8,837	)
MSR Activity	$ Advertisement	(11,410	)		$	2,794 Advertisement			$	6,011	Advertisement		$	(14,527	)	Advertisement	$	7,351		$	(2,605 Advertisement	)		$	8,208	Advertisement
Summary of Mortgage Banking Revenue:								Advertisement									Advertisement
Production revenue⁽¹⁾	$ Advertisement	13,113			$	14,990 Advertisement			$	13,435	Advertisement		$	6,798		Advertisement	$	13,766		$	41,538 Advertisement			$	34,233	Advertisement
Servicing income		10,809		Advertisement		10,586			Advertisement	10,498				10,286 Advertisement				10,191	Advertisement		31,893			Advertisement	33,277
MSR activity		(11,410 Advertisement	)			2,794	Advertisement			6,011		Advertisement		(14,527	)		Advertisement	7,351			(2,605	) Advertisement			8,208
Changes in fair value of early buy-out loans guaranteed by U.S. government agencies (HFS) Advertisement		3,529			Advertisement	642				(2,190 Advertisement	)			4,856	Advertisement			(4,245	)	Advertisement	1,981				(440 Advertisement	)
Other revenue		(67	) Advertisement			112		Advertisement		(91	)		Advertisement	20				332 Advertisement			(46	)	Advertisement		362
Total mortgage banking revenue	$ Advertisement	15,974			$	29,124 Advertisement			$	27,663	Advertisement		$	7,433		Advertisement	$	27,395		$	72,761 Advertisement			$	75,640	Advertisement
Changes in fair value on early buy-out loans guaranteed by U.S. government agencies (HFI)	$	518		Advertisement	$	604			$ Advertisement	(439	)		$	1,556 Advertisement			$	(338	) Advertisement	$	683			$ Advertisement	(35	)

^{(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 17: NON-INTEREST EXPENSE

Advertisement	Three Months Ended																		Q3 2024 compared to Q2 2024							Q3 2024 compared to Q3 2023 Advertisement
	Sep 30,				Jun 30,			Advertisement	Mar 31,			Dec 31,				Sep 30, Advertisement			Q3 2024 compared to Q2 2024							Q3 2024 compared to Q3 2023 Advertisement
(Dollars in thousands)	2024			Advertisement	2024				2024			2023 Advertisement				2023			$ Change			Advertisement	% Change			$ Change				% Change Advertisement
Salaries and employee benefits:								Advertisement								Advertisement									Advertisement
Salaries	$ Advertisement	118,971			$	113,860 Advertisement			$	112,172	Advertisement	$	111,484			$ Advertisement	111,303		$	5,111	Advertisement		4	%		$ Advertisement	7,668			7	% Advertisement
Commissions and incentive compensation		57,575		Advertisement		52,151			Advertisement	51,001			48,974	Advertisement			48,817		Advertisement	5,424			10	Advertisement			8,758		Advertisement	18
Benefits		34,715 Advertisement				32,530	Advertisement			32,000		Advertisement	33,513				32,218 Advertisement			2,185		Advertisement	7				2,497 Advertisement			8
Total salaries and employee benefits Advertisement		211,261			Advertisement	198,541				195,173 Advertisement			193,971		Advertisement		192,338			12,720 Advertisement			6		Advertisement		18,923			10 Advertisement
Software and equipment		31,574	Advertisement			29,231		Advertisement		27,731			27,779 Advertisement				25,951	Advertisement		2,343			8 Advertisement				5,623	Advertisement		22
Operating lease equipment	Advertisement	10,518				10,834 Advertisement				10,683	Advertisement		10,694			Advertisement	12,020			(316	) Advertisement		(3	)		Advertisement	(1,502	)		(12	) Advertisement
Occupancy, net		19,945		Advertisement		19,585			Advertisement	19,086			18,102	Advertisement			21,304		Advertisement	360			2	Advertisement			(1,359	)	Advertisement	(6	)
Data processing		9,984 Advertisement				9,503	Advertisement			9,292		Advertisement	8,892				10,773 Advertisement			481		Advertisement	5				(789 Advertisement	)		(7	)
Advertising and marketing Advertisement		18,239			Advertisement	17,436				13,040 Advertisement			17,166		Advertisement		18,169			803 Advertisement			5		Advertisement		70			0 Advertisement
Professional fees		9,783	Advertisement			9,967		Advertisement		9,553			8,768 Advertisement				8,887	Advertisement		(184	)		(2 Advertisement	)			896	Advertisement		10
Amortization of other acquisition-related intangible assets	Advertisement	4,042				1,122 Advertisement				1,158	Advertisement		1,356			Advertisement	1,408			2,920	Advertisement		NM				2,634 Advertisement			NM
FDIC insurance	Advertisement	10,512				10,429 Advertisement				9,381	Advertisement		9,303			Advertisement	9,748			83	Advertisement		1			Advertisement	764			8	Advertisement
FDIC insurance – special assessment		—		Advertisement		—			Advertisement	5,156			34,374	Advertisement			—		Advertisement	—			NM		Advertisement		—			NM Advertisement
OREO expense, net		(938	)	Advertisement		(259	)		Advertisement	392			(1,559	) Advertisement			120		Advertisement	(679	)		NM		Advertisement		(1,058	)		NM Advertisement
Other:								Advertisement								Advertisement									Advertisement
Lending expenses, net of deferred origination costs	Advertisement	4,995				5,335 Advertisement				5,078	Advertisement		5,330			Advertisement	4,777			(340	) Advertisement		(6	)		Advertisement	218			5	Advertisement
Travel and entertainment		5,364		Advertisement		5,340			Advertisement	4,597			5,754	Advertisement			5,449		Advertisement	24			—	Advertisement			(85	)	Advertisement	(2	)
Miscellaneous		25,408 Advertisement				23,289	Advertisement			22,825		Advertisement	22,722				19,111 Advertisement			2,119		Advertisement	9				6,297 Advertisement			33
Total other Advertisement		35,767			Advertisement	33,964				32,500 Advertisement			33,806		Advertisement		29,337			1,803 Advertisement			5		Advertisement		6,430			22 Advertisement
Total Non-Interest Expense	$	360,687	Advertisement		$	340,353		Advertisement	$	333,145		$	362,652 Advertisement			$	330,055	Advertisement	$	20,334			6 Advertisement	%		$	30,632	Advertisement		9	%

Nine Months Ended

Sep 30,

Sep 30,

(Dollars in thousands)

2024

2023

Change

Salaries and employee benefits:

Salaries

345,003

327,328

17,675

Commissions and incentive compensation

160,727

133,127

27,600

Benefits

99,245

93,587

5,658

Total salaries and employee benefits

604,975

554,042

50,933

Software and equipment

88,536

76,853

11,683

Operating lease equipment

32,035

31,669

366

Occupancy, net

58,616

58,966

(350

)

Data processing

28,779

29,908

(1,129

)

Advertising and marketing

48,715

47,909

806

Professional fees

29,303

25,990

3,313

Amortization of other acquisition-related intangible assets

6,322

4,142

2,180

FDIC insurance

30,322

27,425

2,897

FDIC insurance – special assessment

5,156

—

5,156

OREO expense, net

(805

)

(836

)

Other:

Lending expenses, net of deferred origination costs

15,408

15,766

(358

)

Travel and entertainment

15,301

15,440

(139

)

Miscellaneous

71,522

61,706

9,816

Total other

102,231

92,912

9,319

Total Non-Interest Expense

1,034,185

949,847

84,338

^{NM – Not meaningful.}

TABLE 18: SUPPLEMENTAL NON-GAAP FINANCIAL MEASURES/RATIOS

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

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

Advertisement	Three Months Ended																			Nine Months Ended
	Sep 30,			Advertisement	Jun 30,				Mar 31,				Dec 31, Advertisement				Sep 30,			Sep 30,				Sep 30, Advertisement
(Dollars and shares in thousands)	2024				2024			Advertisement	2024				2023				2023 Advertisement			2024				2023
Reconciliation of Non-GAAP Net Interest Margin and Efficiency Ratio:																				Advertisement
(A) Interest Income (GAAP)	$	908,604 Advertisement			$	849,979	Advertisement		$	805,513		Advertisement	$	793,848			$ Advertisement	762,400		$	2,564,096	Advertisement		$	2,099,266
Taxable-equivalent adjustment: Advertisement									Advertisement											Advertisement
– Loans		2,474 Advertisement				2,305	Advertisement			2,246		Advertisement		2,150			Advertisement	1,923			7,025	Advertisement			5,677
– Liquidity Management Assets Advertisement		668			Advertisement	567				550 Advertisement				575	Advertisement			572		Advertisement	1,785				1,674 Advertisement
– Other Earning Assets		2	Advertisement			3		Advertisement		5			Advertisement	4				1 Advertisement			10		Advertisement		6
(B) Interest Income (non-GAAP)	$ Advertisement	911,748			$	852,854 Advertisement			$	808,314	Advertisement		$	796,577		Advertisement	$	764,896		$	2,572,916 Advertisement			$	2,106,623	Advertisement
(C) Interest Expense (GAAP)		406,021		Advertisement		379,369			Advertisement	341,319				323,874 Advertisement				300,042	Advertisement		1,126,709			Advertisement	731,376
(D) Net Interest Income (GAAP) (A minus C)	$	502,583 Advertisement			$	470,610	Advertisement		$	464,194		Advertisement	$	469,974			$ Advertisement	462,358		$	1,437,387	Advertisement		$	1,367,890
(E) Net Interest Income (non-GAAP) (B minus C) Advertisement	$	505,727			$ Advertisement	473,485			$	466,995 Advertisement			$	472,703	Advertisement		$	464,854		$ Advertisement	1,446,207			$	1,375,247 Advertisement
Net interest margin (GAAP)		3.49	% Advertisement			3.50	%	Advertisement		3.57	%		Advertisement	3.62	%			3.60 Advertisement	%		3.52	%	Advertisement		3.68	%
Net interest margin, fully taxable-equivalent (non-GAAP)	Advertisement	3.51				3.52 Advertisement				3.59	Advertisement			3.64		Advertisement		3.62			3.54 Advertisement				3.70	Advertisement
(F) Non-interest income	$	113,147		Advertisement	$	121,147			$ Advertisement	140,580			$	100,829 Advertisement			$	112,478	Advertisement	$	374,874			$ Advertisement	333,277
(G) (Losses) gains on investment securities, net		3,189 Advertisement				(4,282	) Advertisement			1,326		Advertisement		2,484			Advertisement	(2,357	)		233	Advertisement			(959	)
(H) Non-interest expense Advertisement		360,687			Advertisement	340,353				333,145 Advertisement				362,652	Advertisement			330,055		Advertisement	1,034,185				949,847 Advertisement
Efficiency ratio (H/(D+F-G))		58.88	% Advertisement			57.10	%	Advertisement		55.21	%		Advertisement	63.81	%			57.18 Advertisement	%		57.07	%	Advertisement		55.80	%
Efficiency ratio (non-GAAP) (H/(E+F-G))	Advertisement	58.58				56.83 Advertisement				54.95	Advertisement			63.51		Advertisement		56.94			56.80 Advertisement				55.56	Advertisement
	Three Months Ended																			Nine Months Ended
	Sep 30, Advertisement				Jun 30,				Mar 31,			Advertisement	Dec 31,				Sep 30,			Sep 30,			Advertisement	Sep 30,
(Dollars and shares in thousands)	2024				2024 Advertisement				2024				2023			Advertisement	2023			2024				2023
Reconciliation of Non-GAAP Tangible Common Equity Ratio: Advertisement
Total shareholders’ equity (GAAP)	$ Advertisement	6,399,714			$	5,536,628 Advertisement			$	5,436,400	Advertisement		$	5,399,526		Advertisement	$	5,015,613					Advertisement
Less: Non-convertible preferred stock (GAAP)		(412,500	) Advertisement			(412,500	)	Advertisement		(412,500	)		Advertisement	(412,500	)			(412,500 Advertisement	)
Less: Intangible assets (GAAP) Advertisement		(924,646	)		Advertisement	(676,562	)			(677,911 Advertisement	)			(679,561	) Advertisement			(680,353	)	Advertisement
(I) Total tangible common shareholders’ equity (non-GAAP)	$	5,062,568 Advertisement			$	4,447,566	Advertisement		$	4,345,989		Advertisement	$	4,307,465			$ Advertisement	3,922,760						Advertisement
(J) Total assets (GAAP)	$	63,788,424		Advertisement	$	59,781,516			$ Advertisement	57,576,933			$	56,259,934 Advertisement			$	55,555,246	Advertisement
Less: Intangible assets (GAAP)	Advertisement	(924,646	)			(676,562 Advertisement	)			(677,911	) Advertisement			(679,561	)	Advertisement		(680,353	)				Advertisement
(K) Total tangible assets (non-GAAP)	$	62,863,778	Advertisement		$	59,104,954		Advertisement	$	56,899,022			$ Advertisement	55,580,373			$	54,874,893 Advertisement
Common equity to assets ratio (GAAP) (L/J) Advertisement		9.4	%		Advertisement	8.6	%			8.7 Advertisement	%			8.9	% Advertisement			8.3	%	Advertisement
Tangible common equity ratio (non-GAAP) (I/K)		8.1 Advertisement				7.5	Advertisement			7.6		Advertisement		7.7			Advertisement	7.1						Advertisement

Reconciliation of Non-GAAP Tangible Book Value per Common Share:
Total shareholders’ equity Advertisement	$	6,399,714			$ Advertisement	5,536,628			$	5,436,400 Advertisement			$	5,399,526	Advertisement		$	5,015,613		Advertisement
Less: Preferred stock		(412,500 Advertisement	)			(412,500	) Advertisement			(412,500	)	Advertisement		(412,500	)		Advertisement	(412,500	)					Advertisement
(L) Total common equity	$	5,987,214		Advertisement	$	5,124,128			$ Advertisement	5,023,900			$	4,987,026 Advertisement			$	4,603,113	Advertisement
(M) Actual common shares outstanding	Advertisement	66,482				61,760 Advertisement				61,737	Advertisement			61,244		Advertisement		61,222					Advertisement
Book value per common share (L/M)	$	90.06	Advertisement		$	82.97		Advertisement	$	81.38			$ Advertisement	81.43			$	75.19 Advertisement
Tangible book value per common share (non-GAAP) (I/M) Advertisement		76.15			Advertisement	72.01				70.40 Advertisement				70.33	Advertisement			64.07		Advertisement
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Reconciliation of Non-GAAP Return on Average Tangible Common Equity:
(N) Net income applicable to common shares Advertisement	$	163,010			$ Advertisement	145,397			$	180,303 Advertisement			$	116,489	Advertisement		$	157,207		$ Advertisement	488,710			$	478,173 Advertisement
Add: Intangible asset amortization		4,042	Advertisement			1,122		Advertisement		1,158			Advertisement	1,356				1,408 Advertisement			6,322		Advertisement		4,142
Less: Tax effect of intangible asset amortization	Advertisement	(1,087	)			(311 Advertisement	)			(291	) Advertisement			(343	)	Advertisement		(380	)		(1,682 Advertisement	)			(1,102	) Advertisement
After-tax intangible asset amortization	$	2,955		Advertisement	$	811			$ Advertisement	867			$	1,013 Advertisement			$	1,028	Advertisement	$	4,640			$ Advertisement	3,040
(O) Tangible net income applicable to common shares (non-GAAP)	$	165,965 Advertisement			$	146,208	Advertisement		$	181,170		Advertisement	$	117,502			$ Advertisement	158,235		$	493,350	Advertisement		$	481,213
Total average shareholders’ equity Advertisement	$	5,990,429			$ Advertisement	5,450,173			$	5,440,457 Advertisement			$	5,066,196	Advertisement		$	5,083,883		$ Advertisement	5,628,346			$	5,008,648 Advertisement
Less: Average preferred stock		(412,500	) Advertisement			(412,500	)	Advertisement		(412,500	)		Advertisement	(412,500	)			(412,500 Advertisement	)		(412,500	)	Advertisement		(412,500	)
(P) Total average common shareholders’ equity	$ Advertisement	5,577,929			$	5,037,673 Advertisement			$	5,027,957	Advertisement		$	4,653,696		Advertisement	$	4,671,383		$	5,215,846 Advertisement			$	4,596,148	Advertisement
Less: Average intangible assets		(833,574	)	Advertisement		(677,207	)		Advertisement	(678,731	)			(679,812 Advertisement	)			(681,520	) Advertisement		(730,216	)		Advertisement	(679,799	)
(Q) Total average tangible common shareholders’ equity (non-GAAP)	$	4,744,355 Advertisement			$	4,360,466	Advertisement		$	4,349,226		Advertisement	$	3,973,884			$ Advertisement	3,989,863		$	4,485,630	Advertisement		$	3,916,349
Return on average common equity, annualized (N/P) Advertisement		11.63	%		Advertisement	11.61	%			14.42 Advertisement	%			9.93	% Advertisement			13.35	%	Advertisement	12.52	%			13.91 Advertisement	%
Return on average tangible common equity, annualized (non-GAAP) (O/Q)		13.92	Advertisement			13.49		Advertisement		16.75			Advertisement	11.73				15.73 Advertisement			14.69		Advertisement		16.43
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Reconciliation of Non-GAAP Pre-Tax, Pre-Provision Income:																				Advertisement
Income before taxes	$	232,709 Advertisement			$	211,343	Advertisement		$	249,956		Advertisement	$	165,243			$ Advertisement	224,858		$	694,008	Advertisement		$	679,838
Add: Provision for credit losses Advertisement		22,334			Advertisement	40,061				21,673 Advertisement				42,908	Advertisement			19,923		Advertisement	84,068				71,482 Advertisement
Pre-tax income, excluding provision for credit losses (non-GAAP)	$	255,043	Advertisement		$	251,404		Advertisement	$	271,629			$ Advertisement	208,151			$	244,781 Advertisement		$	778,076		Advertisement	$	751,320

WINTRUST SUBSIDIARIES AND LOCATIONS

Wintrust is a financial holding company whose common stock is traded on the Nasdaq Global Select Market (Nasdaq: WTFC). Its 16 community bank subsidiaries are: Lake Forest Bank & Trust Company, N.A., Hinsdale Bank & Trust Company, N.A., Wintrust Bank, N.A., in Chicago, Libertyville Bank & Trust Company, N.A., Barrington Bank & Trust Company, N.A., Crystal Lake Bank & Trust Company, N.A., Northbrook Bank & Trust Company, N.A., Schaumburg Bank & Trust Company, N.A., Village Bank & Trust, N.A., in Arlington Heights, Beverly Bank & Trust Company, N.A. in Chicago, Wheaton Bank & Trust Company, N.A., State Bank of The Lakes, N.A., in Antioch, Old Plank Trail Community Bank, N.A., in New Lenox, St. Charles Bank & Trust Company, N.A., Town Bank, N.A., in Hartland, Wisconsin and Macatawa Bank in Holland, Michigan.

In addition to the locations noted above, the banks also operate facilities in Illinois in Addison, Algonquin, Aurora, Bloomingdale, Bolingbrook, Buffalo Grove, Burbank, Cary, Clarendon Hills, Countryside, Crete, Darien, Deerfield, Des Plaines, Downers Grove, Elgin, Elk Grove Village, Elmhurst, Evanston, Evergreen Park, Frankfort, Geneva, Glen Ellyn, Glencoe, Glenview, Grayslake, Gurnee, Hanover Park, Hawthorn Woods, Highland Park, Highwood, Hoffman Estates, Homer Glen, Itasca, Joliet, Lake Bluff, Lake Villa, Lansing, Lemont, Lindenhurst, Lombard, Lynwood, Markham, Maywood, McHenry, Mokena, Mount Prospect, Mundelein, Naperville, Norridge, Northfield, Oak Lawn, Oak Park, Orland Park, Palatine, Park Ridge, Prospect Heights, Riverside, Rockford, Rolling Meadows, Round Lake Beach, Shorewood, Skokie, Spring Grove, Steger, Stone Park, Vernon Hills, Wauconda, Waukegan, Western Springs, Willowbrook, Wilmette, Winnetka and Wood Dale, and in Wisconsin in Burlington, Clinton, Delafield, Delavan, Elm Grove, Genoa City, Kenosha, Lake Geneva, Madison, Menomonee Falls, Milwaukee, Pewaukee, Racine, Wales, Walworth, Whitefish Bay and Wind Lake, and in Michigan in Allendale, Byron Center, Douglas, Grand Haven, Grand Rapids, Grandville, Hamilton, Hudsonville, Jenison, Rockford, Walker, Wyoming, and Zeeland, and in Florida in Bonita Springs and Naples, and in Indiana in Crown Point and Dyer.

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

FIRST Insurance Funding and Wintrust Life Finance, each a division of Lake Forest Bank & Trust Company, N.A., serve commercial and life insurance loan customers, respectively, throughout the United States.
First Insurance Funding of Canada serves commercial insurance loan customers throughout Canada.
Tricom, Inc. of Milwaukee provides high-yielding, short-term accounts receivable financing and value-added out-sourced administrative services, such as data processing of payrolls, billing and cash management services, to temporary staffing service clients located throughout the United States.
Wintrust Mortgage, a division of Barrington Bank & Trust Company, N.A., engages primarily in the origination and purchase of residential mortgages for sale into the secondary market through origination offices located throughout the United States. Loans are also originated nationwide through relationships with wholesale and correspondent offices.
Wintrust Investments, LLC is a broker-dealer providing a full range of private client and brokerage services to clients and correspondent banks located primarily in the Midwest.
Great Lakes Advisors LLC provides money management services and advisory services to individual accounts.
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 2023 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, plans to form additional de novo banks or branch offices, 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. 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, October 22, 2024 at 10:00 a.m. (CDT) regarding third quarter and year-to-date 2024 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 September 30, 2024 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 third quarter and year-to-date 2024 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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Finance

Evoke Entertainment Closes $35 Million Production Financing Facility Backed By Major Private Credit Fund

Published

6 hours ago

May 29, 2026

Press Room

Evoke Entertainment Closes Million Production Financing Facility Backed By Major Private Credit Fund

EXCLUSIVE: Evoke Entertainment has closed a senior secured production financing facility of up to $35 million backed by a multi-billion-dollar private credit fund.

While we verified the deal with the lender, they spoke with Deadline on the condition of anonymity, per company policy. The revolving production facility is designed to support Evoke’s expanding slate of independent features, television movies, streaming films, and series — significantly increasing the company’s already high-volume production output across major studios, networks, and streaming platforms.

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Structured around contracted revenue streams, distribution agreements, tax incentives, and the value of Evoke’s existing library and historical production performance, the facility provides the company with flexible, scalable production financing across multiple genres and platforms. Evoke’s lender comes to the partnership with extensive experience in structured finance, asset-backed lending, and entertainment-related investments.

The deal was spearheaded by Evoke Entertainment CEO Stan Spry, who told us, “This financing marks a transformative moment for Evoke. The backing of a major institutional private credit partner gives us the ability to substantially scale our production operations while continuing to focus on commercially driven, cost-efficient content for the global marketplace.”

The first projects to be financed under Evoke’s facility include a large slate of TV and streaming movies including a Christmas film for Hallmark, a survival thriller for Lifetime, alongside the independent feature films Suburban Kings, Homesick, and Bali Hai.

Founded in 2011, and formerly known as Cartel Entertainment, Evoke Entertainment is a full-service management, production, and finance company that produces more than 20 films and series annually across major platforms including Netflix, Hallmark, Lifetime, Tubi, NBC/Peacock, AMC, and Great American Media. Notable past projects include Creepshow (AMC), Day of the Dead (Syfy), Twelve Forever (Netflix), and the upcoming Breaking Bear for Tubi, to name a few.

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Finance

Livestock Methane in India: Aligning Livelihoods, Systems, and Finance – CPI

Published

18 hours ago

May 29, 2026

Press Room

Livestock Methane in India: Aligning Livelihoods, Systems, and Finance – CPI

Background

India is home to the world’s largest livestock population of 536.76 million, which produces 25% of the world’s milk¹. This increase in livestock population leads to increased methane emissions, primarily from enteric fermentation and manure management. As a result, livestock contributes to 58% (BUR 4, 2020) of India’s agricultural methane footprint. However, unlike crop-based emissions, livestock methane is diffuse, biologically driven, and more complex to measure and manage, making it less visible within existing climate finance frameworks.

Current research and policy discussions indicate that while technical mitigation solutions exist through feed improvements and manure management, evidence of their effectiveness in maintaining dairy productivity, animal health, and protecting farmers’ incomes is scattered. This leads to heightened risk perceptions among dairy producers when considering methane mitigation measures. Furthermore, even where the evidence is compelling, the fragmentation of dairy producers precludes their aggregation. Additionally, there is a lack of robust, affordable, and scalable monitoring, reporting, and verification (MRV) systems at the grassroots level. These barriers prevent the development of a clear, scalable, and financeable pipeline of livestock methane abatement in India.

The Government of India has actively supported dairy development and livestock health through various schemes and programs introduced by the Department of Animal Husbandry and Dairying. At the same time, livestock systems in India are deeply embedded within rural livelihoods and socio-economic structures, making the sector a critical component of rural resilience. Consequently, interventions must be context-aware and farmer-centric, with a strong focus on livelihood security and alignment with local values and practices.

With this background, CPI is organizing a roundtable to explore how livestock methane can transition from a technically understood challenge to actionable opportunities on the ground, including both animal feed and manure management. The forum would bring together dairy producer organizations, nodal agencies, think tanks, ecosystem enablers, and financial institutions. It will deliberate upon possible projectized solutions and accompanying financing mechanisms that could be scaled up to address the twin objectives of methane abatement and farmers’ income security.

Finance

Efficient Capital Markets Can Unlock Africa’s Domestic Savings

Published

3 days ago

May 27, 2026

Press Room

By Samira Mensah, Head of Analytics & Research Africa, S&P Global Ratings

Efficient capital markets can transform Africa’s limited domestic financial assets into investments that spur economic growth. By connecting institutional investors, pension funds and foreign investors, capital markets enhance economic development by increasing the availability of funding for long-term projects.

Efficient domestic capital markets can not only address governments’ significant funding gaps but can also ensure that critical infrastructure developments—such as transportation, energy and telecommunications—are adequately financed, ultimately driving economic growth and employment. Supported by transparent and comparable risk frameworks, efficient domestic capital markets can build confidence among domestic and foreign investors and enhance resilience during periods of global risk aversion.

In our view, African capital markets currently lack two key building blocks.

In our view, African capital markets currently lack two key building blocks. Firstly, with limited exceptions, regulatory frameworks generally lag the International Organization of Securities Commissions’ (IOSCO’s) global standards, which cover listing standards on securities exchanges, development of digital market infrastructure and improvements in the timeliness and transparency of regulatory disclosures of issuers’ financial results, including environmental, social and governance (ESG) factors and green-finance taxonomies.

Some countries, such as South Africa, Kenya, Morocco and Mauritius, are more advanced than others. The misalignment of regulatory frameworks with international norms stems from the gap between adoption and implementation through legislation, which deters international and local investment.

Secondly, the absence of standardized risk assessments leads to information gaps and limits investor participation in primary and secondary bond markets. Credit benchmarks—such as sovereign-yield curves, credit ratings and market-implied risk measures—can help in this regard. They distill complex financial, macroeconomic and institutional information into consistent and comparable signals.

As such, these benchmarks provide a standardized framework for assessing creditworthiness, supporting consistent credit analysis and facilitating decision-making based on transparent and comparable data. They are relevant to investment vehicles with specific investment mandates and may influence the availability of capital, which is crucial for infrastructure projects.

Capital markets can spur economic growth

Capital markets can play a central role in turning domestic savings into productive investments. This is particularly the case in Africa, where development needs are high and incomes are rising from a low base. Additionally, innovative financial technologies, such as fintech platforms, attract more small savings—including money sent home by migrants—that can also fund investments. However, mobilizing domestic savings for investments in local economies remains a significant challenge because many transactions are in cash and outside the financial system.

According to the Africa Finance Corporation (AFC), African sovereign-wealth funds, pension funds, insurers, central banks and commercial banks hold an estimated US$4 trillion in financial assets, representing 130 percent of Africa’s gross domestic product (GDP) in 2025. Long-term institutional capital accounts for $1.1 trillion of the $4 trillion, while African sovereign-wealth funds manage only about $145 billion in assets under management (AUM)—less than 1 percent of global sovereign-wealth funds’ AUM.

Although banking assets comprise the majority of financial assets, they are typically short-term, and banks rely on customer deposits to fund lending activities. This underscores the mismatch between banks’ short-term funding profiles and the economy’s long-term financing needs, particularly in underdeveloped financial systems.

South Africa holds the largest share of Africa’s financial assets, followed by Egypt and Nigeria. South Africa contributes 20-25 percent to Africa’s financial assets. This reflects the country’s outsized role within the continent’s savings pools, its large and mature pension system and its highly developed banking sector. We estimate that the South African banking sector’s assets amount to nearly 100 percent of GDP, while nonbank financial institutions—including pension and insurance funds—account for close to 120 percent of GDP.

Smaller economies that are important regional financial hubs—such as Morocco, Mauritius and Kenya—also play a meaningful role. Aggregate financial assets represent 80 percent to more than 200 percent of these economies’ respective GDPs. Yet a significant portion of this capital does not flow into long-term productive investments.

In several countries, the economic effects of financial assets are muted because large shares are either invested in government securities or placed offshore. For example, the bank-sovereign nexus remains particularly high in Egypt and Kenya, where government securities account for 30-60 percent of banking assets. This contributes to crowding out private investments and increases fiscal-financial linkages. Pension funds are further constrained by specific investment mandates. We understand that only 5 percent of their assets are allocated to alternative investments.

Capital allocation rules could channel domestic savings into real sectors

Regulations across various jurisdictions permit pension funds and sovereign-wealth funds to invest abroad, albeit to varying degrees. For instance, South Africa, which holds the largest share of the continent’s institutional savings, allows its pension funds to invest up to 45 percent offshore, while Nigeria’s regulatory framework limits pension funds’ aggregate offshore exposure to 20-25 percent.

While this facilitates diversification, it also means that a significant portion of domestic savings is invested in fixed-income securities outside Africa, thereby curbing the potential for local economic development. Similarly, when African sovereign-wealth funds invest internationally, their portfolios tend to be diversified away from African assets, further diluting the potential developmental benefits of domestic savings.

Intra-African investment remains limited

However, existing cross-border banking and investment activity points to significant untapped potential. Pan-African banks are important for regional financial connectivity, but their cross-border activities are limited by risk-return considerations, leaving significant potential for greater mobilization of long-term investment. These banking groups’ networks facilitate payments, trade settlement and sovereign financing, but remain only partially leveraged for long-term investment mobilization.

For example, Moroccan banking groups have built extensive footprints across francophone West and Central Africa but their assets outside Morocco account for less than 10 percent of their consolidated assets. Although Nigerian and Kenyan banks support trade finance and corporate lending across regional trade corridors, their home markets hold the lion’s share of their consolidated assets.

Cross-border institutional capital flows remain modest. Pension funds and insurers largely invest domestically—often in government securities—or allocate savings offshore. This reflects regulatory fragmentation, currency risks, shallow capital markets and limited regional investment-vehicle opportunities. Joint investments in infrastructure, productive sectors and regional value chains remain low.

The African Continental Free Trade Area (AfCFTA) aims at deepening financial integration. By seeking to expand intra-African trade and regional value chains, the AfCFTA aims to increase demand for cross-border financing, risk-sharing and long-term capital. This, however, will require more regional capital-market integrations, harmonized regulations and co-investment platforms that pool African savings.

Leveraging existing pan-African banking networks, regional bond markets, infrastructure funds and blended-finance vehicles could redirect Africa’s capital toward continental growth. This could, in turn, reduce reliance on external financing and strengthen the links between domestic savings and productive investments under the AfCFTA framework.

The catalytic role of MLIs in capital mobilization

Multilateral lending institutions (MLIs) can mobilize long-term funding, provide credit enhancement and support the introduction of new financing structures. To improve capital efficiency and preserve lending capacity, several MLIs have increasingly used balance-sheet optimization tools in recent years, including portfolio risk-sharing and originate-to-distribute-type arrangements.

More broadly, MLIs’ engagement extends beyond direct financing to include policy support, institutional and capacity-building development and infrastructure. These measures may support longer-term improvements in market functioning and economic integration.

Afreximbank’s (African Export–Import Bank’s) push to implement the Pan-African Payment and Settlement System (PAPSS) aims to accelerate regional trade integration under the AfCFTA. The PAPSS seeks to facilitate cross-border settlements in local currencies and reduce trade costs, while the Africa Trade Gateway plans to ease cross-border trade and payment flows. The benefits of these platforms for intraregional trade and transaction costs will likely emerge gradually.

Even so, structural constraints remain. In particular, the limited availability of first-loss concessional capital and uneven risk appetite in the private sector continue to constrain the scale and pace at which blended-finance solutions can be deployed. Although MLIs’ continent-wide initiatives could support the gradual expansion of public-private partnerships and risk-sharing structures, their effectiveness will likely depend on sustained policy support, transaction standardization and stable macro-financial conditions.

Strengthening Africa’s capital markets

We believe the development of capital markets is crucial for the growth of African economies and their private sectors.

We believe the development of capital markets is crucial for the growth of African economies and their private sectors. Unlocking Africa’s abundant funding potential would benefit from establishing effective regulatory regimes that encourage listings without overburdening issuers. Strengthening capital markets by facilitating both debt and equity raisings and listings can broaden market access and deepen market liquidity.

Excluding South Africa, capital markets across Africa remain fragmented and shallow. The Johannesburg Stock Exchange (JSE), the largest African stock exchange by market capitalization, has a total market capitalization of South African rand (ZAR) 24.6 trillion (about US$1.5 trillion)—more than three times South Africa’s GDP. It ranks among the top 20 stock exchanges worldwide.

In contrast, other exchanges are more modest, as their private sectors’ funding profiles rely primarily on bank loans rather than accessing capital markets. Countries such as Nigeria, Egypt, Côte d’Ivoire, Kenya and Morocco have significant domestic financing sources, but these often come at high costs.

Governments largely define these domestic bond markets because they are the largest issuers, and commercial banks are the primary buyers of government bonds. South Africa has the most liquid and diverse bond market, but government securities dominate local-currency issuances (270 percent of GDP).

Countries such as South Africa and Nigeria have introduced reforms to unlock nonbank domestic capital, notably through pension-fund reforms that allow greater capital allocation to alternative assets. Other reforms aim to develop new financing platforms, facilitate green financing and set benchmarks for how capital markets can price climate and infrastructure-related risks.

In 2022, the African Development Bank (AfDB) issued its inaugural local-currency ZAR200-million green bond, which was listed on the JSE. The JSE is advancing sustainability-linked financial instruments and improving ESG disclosures, aligning African capital markets with global best practices.

In 2026, the JSE launched its nature platform and listed Africa’s first nature-linked performance-based bond—a ZAR2.5-billion issuance by FirstRand Bank, one of the country’s top banks. In 2025, the Rwanda Stock Exchange (RSE) launched its Green Exchange Window (GEW), supported by the Luxembourg Stock Exchange (LuxSE).

Collectively, these labeled debt instruments can act as catalysts for blended-finance structures, mobilizing more private capital.

Governments play a vital role in equalizing access to information and developing deep, transparent sovereign-bond markets. Well-established government-bond yield curves in these markets serve as important pricing benchmarks for corporates and the wider economy. This enhances investor confidence and facilitates more informed investment decisions. Ongoing efforts by governments to increase transparency, provide timely information disclosures and maintain robust regulatory oversight will maximize the benefits of sovereign-bond markets.

Clear and credible credit signals further enhance pricing transparency, enabling investors to better assess risk and return. Greater confidence in valuations supports active participation, improves secondary-market liquidity and strengthens price discovery. Over time, this creates a virtuous cycle—whereby increased participation reinforces market efficiency and resilience, ultimately supporting sustainable economic growth in Africa.

Despite structural shortcomings, domestic investors have increasingly stepped in to meet financing needs. Infrastructure projects are now more often financed through domestic local-currency capital markets and financial institutions, including development-finance institutions. We believe that Africa’s economic integration will be intrinsically linked to more developed domestic capital markets.

ABOUT THE AUTHOR

Samira Mensah is Managing Director, Research & Analytics Africa, and Country Head for South Africa at S&P Global Ratings, based in Johannesburg. She leads thought leadership and market outreach initiatives across Africa, with a particular focus on African credit markets and Islamic finance. A frequent speaker at industry conferences and contributor to research publications, Samira recently presented at The Africa We Build Summit in Nairobi.