GlobeNewswire Inc | Jan 20, 2021 04:42PM EST

January 20, 2021

ROSEMONT, Ill., Jan. 20, 2021 (GLOBE NEWSWIRE) -- Wintrust Financial Corporation (Wintrust, the Company, "we" or "our") (Nasdaq: WTFC) announced net income of $101.2 million or $1.63 per diluted common share for the fourth quarter of 2020, a decrease in diluted earnings per common share of 2% compared to the third quarter of 2020 and an increase of 13% compared to the fourth quarter of 2019. The Company recorded net income of $293.0 million or $4.68 per diluted common share for the year ended December 31, 2020 compared to net income of $355.7 million or $6.03 per diluted common share for the same period of 2019.

Highlights of the Fourth Quarter of 2020:Comparative information to the third quarter of 2020

-- Total assets increased by $1.3 billion. -- Total loans, excluding Paycheck Protection Program ("PPP") loans, increased by $607 million primarily due to growth in commercial loans and life insurance premium finance receivables. This growth also included a $71 million net increase in residential real estate loans for investment as the Company decided to allocate a portion of its current and future mortgage production for investment. In addition, during the fourth quarter of 2020, the Company exercised its early buy-out option on $248 million of eligible loans previously sold to the Government National Mortgage Association ("GNMA") recorded in mortgage loans held-for-sale. See Table 1 for more information.PPP loans originated in 2020 declined by $663 million in the fourth quarter of 2020 primarily as a result of processing forgiveness payments. As of January 15, 2021, approximately 23% of PPP loan balances originated in 2020 have been forgiven, approximately 45% of balances are in the forgiveness review or submission process, and approximately 32% of balances have yet to apply. -- Total deposits increased by $1.2 billion, notwithstanding the return of approximately $666 million in wholesale deposits during the fourth quarter of 2020. -- Net interest income increased by $3.5 million primarily due to a reduction in the rate on interest-bearing deposits and loan growth.The rate on interest-bearing deposits declined by 10 basis points in the fourth quarter of 2020 as compared to the third quarter of 2020. This improvement more than offset a two basis point decline in the yield on total loans in the fourth quarter of 2020 as compared to the third quarter of 2020.The Company recognized $16.8 million of PPP loan fee accretion in the fourth quarter of 2020 as compared to $17.4 million in the third quarter of 2020 on PPP loans originated in 2020. As of December 31, 2020, the Company had approximately $32.5 million of PPP loan fees that have yet to be recognized in income. -- The loans to deposits ratio ended the fourth quarter of 2020 at 86.5% as compared to 89.7% as of September 30, 2020. Excluding PPP loans, the loans to deposits ratio ended the fourth quarter of 2020 at 79.2%. -- Mortgage banking revenue decreased by $21.7 million to $86.8 million for the fourth quarter of 2020 as compared to $108.5 million in the prior quarter. -- Outstanding COVID-19 related loan modifications for customers totaled approximately $345 million or 1.2% of total loans, excluding PPP loans, as of December 31, 2020 as compared to $413 million or 1.4% as of September 30, 2020. -- Provision for credit losses totaled $1.2 million in the fourth quarter of 2020 as compared to $25.0 million in the third quarter of 2020. -- Recorded net charge-offs of $10.3 million in the fourth quarter of 2020, of which $5.9 million were reserves on individually assessed loans as of the prior quarter end, as compared to net charge-offs of $9.3 million in the third quarter of 2020. Net charge-offs as a percentage of average total loans, totaled 13 basis points in the fourth quarter of 2020 on an annualized basis compared to 12 basis points on an annualized basis in the third quarter of 2020. -- The allowance for credit losses on our core loan portfolio is approximately 1.82% of the outstanding balance as of December 31, 2020, down from 1.88% as of September 30, 2020. See Table 12 for more information. -- Non-performing loans declined by $45.6 million, or 26%, and totaled $127.5 million, or 0.40% of total loans, as of December 31, 2020 as compared to $173.1 million, or 0.54% of total loans, as of September 30, 2020.

Other items of note from the fourth quarter of 2020

-- The following items had a $13.2 million unfavorable pre-tax income impact on the fourth quarter of 2020:Recorded a decrease in the value of mortgage servicing rights related to changes in fair value model assumptions of $5.2 million in the fourth quarter of 2020 as compared to a decrease of $3.0 million in the third quarter of 2020.Accrued $6.6 million of contingent consideration expense in the fourth quarter of 2020 related to the previous acquisition of mortgage operations as compared to $6.3 million in the third quarter of 2020, which was recorded in other non-interest expense. Recorded an impairment charge of $1.4 million in occupancy expense related to the planned closure of 10 bank branches. -- Repurchased 974,150 shares of our common stock at a cost of $54.9 million, or an average price of $56.40 per share.

Edward J. Wehmer, Founder and Chief Executive Officer, commented, "Wintrust reported net income of $101.2 million for the fourth quarter of 2020, down from $107.3 million in the third quarter of 2020. The fourth quarter of 2020 was characterized by significant loan growth, increased net interest income, strong mortgage banking revenue, a significant reduction in non-performing loans and a continued focus to increase franchise value in our market area."

Reflecting on the year, Mr. Wehmer stated, "I am very appreciative of our staff's tireless efforts to make the best of a difficult year. The year offered many challenges and I could not be more proud of our results. Pre-tax income, excluding provision for credit losses (non-GAAP), increased by 13% to $604 million in 2020 as compared to $534 million in 2019. We finished 2020 with a lot of momentum and look forward to serving our communities and being responsive to our customers in the new year."

Mr. Wehmer continued, "The Company experienced significant loan growth, excluding PPP loans, in the fourth quarter of 2020, including growth in its commercial, commercial real estate, residential real estate loans for investment and life insurance premium finance receivable portfolios. In addition, the Company supplemented loan growth by exercising its early buy-out option on eligible GNMA loans. The majority of the loan growth was in the latter part of the quarter as total period end loans, excluding PPP loans, were $678 million higher than average total loans, excluding PPP loans, in the fourth quarter of 2020. Our loan pipelines remain strong and we expect to continue to grow loans in 2021 without compromising our credit standards. Total deposits increased by $1.2 billion as compared to the third quarter of 2020 even with the return of approximately $666 million in wholesale deposits. Additionally, the mix of deposit growth during the quarter was favorable evidenced by $1.3 billion of growth in non-interest bearing deposits. We continue to emphasize growing our franchise, including gathering low cost deposits, which we believe will drive value in the long term. Our loans to deposits ratio ended the quarter at 86.5% and we believe that we have sufficient liquidity to meet customer loan demand."

Mr. Wehmer commented, "Net interest income increased in the fourth quarter of 2020 primarily due to lower interest expense on interest-bearing deposits and loan growth. The rate on interest-bearing deposits declined 10 basis points in the fourth quarter of 2020 as compared to the third quarter of 2020. This improvement more than offset a two basis point decline in the yield on total loans in the fourth quarter of 2020 as compared to the third quarter of 2020. PPP loan fee accretion was relatively flat as the Company recognized $16.8 million of PPP loan fee accretion in the fourth quarter of 2020 as compared to $17.4 million in the third quarter of 2020. The three basis point decline in the net interest margin in the fourth quarter of 2020 as compared to the third quarter of 2020 was primarily due to increased levels of liquidity as average interest-bearing cash increased by $1.0 billion. We have accumulated excess liquidity in recent quarters and believe that, if conditions allow for suitable deployment of such excess liquidity, we could potentially increase our net interest margin by 15 to 30 basis points, depending on the mix of earning assets of such reinvestment."

Mr. Wehmer noted, Our mortgage banking business delivered another strong quarter of mortgage banking revenue in light of the demand associated with historically low long-term interest rates. Loan volumes originated for sale in the fourth quarter of 2020 were $2.4 billion, up from $2.2 billion in the third quarter of 2020. Production revenue decreased during the quarter as the origination pipeline declined as compared to the end of the third quarter of 2020. This decline was partially due to the Company increasing its allocation of pipeline to originations for investment in order to increase earning assets on the balance sheet. Additionally, the Company recorded a $5.2 million decline in the value of mortgage servicing rights related to changes in fair value model assumptions. We are leveraging efficiencies in our delivery channels and staffing strategies to keep pace with unprecedented demand. The strong quarter of mortgage performance contributed to reporting a 1.12% net overhead ratio for the fourth quarter of 2020. We believe the first quarter of 2021 will provide another strong quarter for mortgage banking production."

Commenting on credit quality, Mr. Wehmer stated, "The Company recorded provision for credit losses of $1.2 million reflecting improvement in credit quality in the fourth quarter of 2020. We expended significant effort in the quarter diligently reviewing and addressing our credit portfolio. The Company's population of loans with a rating below "pass" as of December 31, 2020 declined by $273 million, or 14%, as compared to the prior quarter end primarily due to a note sale, pay-offs and risk rating upgrades. The level of non-performing loans decreased by $45.6 million primarily due to non-performing loan pay-offs. Additionally, net charge-offs remained relatively low totaling $10.3 million in the fourth quarter of 2020 as compared to $9.3 million in the third quarter of 2020. The allowance for credit losses on our core loan portfolio as of December 31, 2020 is approximately 1.82% of the outstanding balance. We believe that the Companys reserves remain appropriate and we remain diligent in our review of credit."

Mr. Wehmer added, "In addition to the previously announced sale ofthree branches in southwestern Wisconsin, we continue to review our branch footprint and have initiated plans to close an additional 10 branches. These are predominantly smaller locations in close proximity to other Wintrust locations. As such, we do not expect any material attrition or customer disruption. We expect the noted branches to close prior to the end of the second quarter and the branch sale in Wisconsin to close in the second quarter. In the fourth quarter of 2020, we recorded an impairment charge of $1.4 million associated with the closing of the 10 locations. Collectively, the reduction of 13 locations represents approximately 7% of the Wintrust retail banking locations and will result in a reduction in expenses of approximately $5 million annually on an ongoing basis. It is important to note that while we see increased use of electronic services and are investing heavily in digital capabilities to allow clients to choose how they want to be served, Wintrust will continue to selectively open branches in areas where we are not represented."

Mr. Wehmer concluded, "We remain committed to supporting our community, including the well-being and safety of our customers and employees. We are participating in the latest round of PPP having opened our application portal on January 11, 2021. As of January 19, 2021, we havereceived approximately 5,400 applications aggregating in excess of $1.1 billion of loans withassociated fees of approximately $44 million. We are focused on taking advantage of market opportunities to prudently deploy excess liquidity into earning assets. In particular, we expect to grow PPP loans, organic loans, residential real estate loans for investment and investment securities while maintaining an interest rate sensitive asset portfolio. We continue to evaluate our operating expense base to enhance future profitability. We also continue to carefully monitor the COVID-19 pandemic and evaluate the impact that it could have on the economy, our customers and our business. We remain focused on navigating the current environment by actively monitoring and managing our credit portfolio."

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SUMMARY OF RESULTS:

BALANCE SHEET

Total asset growth of $1.3 billion in the fourth quarter of 2020 was primarily comprised of a $977 million increase in interest-bearing deposits with banks, a $312 million increase in mortgage loans held-for-sale, and a $128 million increase in investment securities, partially offset by a $56 million decrease in loans. The Company believes that the $4.8 billion of interest-bearing deposits with banks held as of December 31, 2020 provides more than sufficient liquidity to operate its business plan.

The $56 million decrease in loans was primarily a result of processing forgiveness payments, as PPP loans declined by $663 million in the fourth quarter of 2020. Total loans, excluding PPP loans, increased by $607 million primarily due to growth in commercial loans and life insurance premium finance receivables. This growth also included a $71 million net increase in residential real estate loans for investment as the Company decided to allocate a portion of its current and future mortgage production for investment.

Total liabilities increased $1.3 billion in the fourth quarter of 2020 resulting primarily from a $1.2 billion increase in total deposits, which included the return of approximately $666 million in wholesale deposits. The increase in deposits was primarily due to a $1.3 billion increase in non-interest-bearing deposits. Our loans to deposits ratio ended the quarter at 86.5%. Management believes in substantially funding the Company's balance sheet with core deposits and utilizes brokered or wholesale funding sources as appropriate to manage its liquidity position as well as for interest rate risk management purposes.

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

NET INTEREST INCOME

For the fourth quarter of 2020, net interest income totaled $259.4 million, an increase of $3.5 million as compared to the third quarter of 2020 and a decrease of $2.5 million as compared to the fourth quarter of 2019. The $3.5 million increase in net interest income in the fourth quarter of 2020 compared to the third quarter of 2020 was primarily due to a 10 basis point decline in the rate on interest-bearing deposits in the fourth quarter of 2020 and loan growth.

Net interest margin was 2.53% (2.54% on a fully taxable-equivalent basis, non-GAAP) during the fourth quarter of 2020 compared to 2.56% (2.57% on a fully taxable-equivalent basis, non-GAAP) during the third quarter of 2020 and 3.17% (3.19% on a fully taxable-equivalent basis, non-GAAP) during the fourth quarter of 2019. The three basis point decrease in net interest margin in the fourth quarter of 2020 as compared to the third quarter of 2020 was attributable to a 10 basis point decline in the yield on earning assets and a two basis point decrease in the net free funds contribution partially offset by a nine basis point decrease in the rate paid on interest-bearing liabilities. The 10 basis point decline in the yield on earning assets in the fourth quarter of 2020 as compared to the third quarter of 2020 was primarily due to a $1.0 billion increase in average interest-bearing deposits with banks and cash equivalents. The decrease in the rate paid on interest-bearing liabilities in the fourth quarter of 2020 as compared to the prior quarter is primarily due to a 10 basis point decrease in the rate paid on interest-bearing deposits as management initiated various deposit rate reductions given the low interest rate environment.

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

ASSET QUALITY

The allowance for credit losses totaled $380.0 million as of December 31, 2020, a decrease of $9.0 million as compared to $389.0 million as of September 30, 2020. The allowance for credit losses decreased primarily due to portfolio changes and was partially offset by changes in the macroeconomic forecasted conditions. The Commercial, Industrial and Other portfolio realized a decrease in the allowance for credit losses as compared to the prior quarter-end, which was primarily driven by improving portfolio credit characteristics. There was an increase in the allowance for credit losses in the Commercial Real Estate portfolios driven by deterioration in the Commercial Real Estate Price Index forecast, partially offset by improvement in Baa Corporate Credit Spreads. Other key drivers of allowance for credit losses changes in these portfolios include, but are not limited to, decreases in COVID-19 related loan modifications and loan risk rating migration.

The provision for credit losses totaled $1.2 million for the fourth quarter of 2020 compared to $25.0 million for the third quarter of 2020 and $7.8 million for the fourth quarter of 2019. For more information regarding the provision for credit losses, see Table 11 in this report.

Management believes the allowance for credit losses is appropriate to account for expected credit losses. The Current Expected Credit Losses ("CECL") standard requires the Company to estimate expected credit losses over the life of the Companys financial assets at a certain point in time. There can be no assurances, however, that future losses will not significantly exceed the amounts provided for, thereby affecting future results of operations. A summary of the allowance for credit losses calculated for the loan components in the core loan portfolio, the niche and consumer loan portfolio and the purchased loan portfolio as of December31, 2020 and September30, 2020 is shown on Table 12 of this report.

Net charge-offs totaled $10.3 million in the fourth quarter of 2020, a $1.0 million increase from $9.3 million in the third quarter of 2020 and a $2.4 million decrease from $12.7 million in the fourth quarter of 2019. Net charge-offs as a percentage of average total loans, totaled 13 basis points in the fourth quarter of 2020 on an annualized basis compared to 12 basis points on an annualized basis in the third quarter of 2020 and 19 basis points on an annualized basis in the fourth quarter of 2019. For more information regarding net charge-offs, see Table 10 in this report.

As of December31, 2020, $41.6 million of all loans, or 0.1%, were 60 to 89 days past due and $139.1 million, or 0.4%, were 30 to 59 days (or one payment) past due. As of September30, 2020, $49.9 million of all loans, or 0.2%, were 60 to 89 days past due and $186.5 million, or 0.6%, were 30 to 59 days (or one payment) past due. Many of the commercial and commercial real-estate loans shown as 60 to 89 days and 30 to 59 days past due are included on the Companys internal problem loan reporting system. Loans on this system are closely monitored by management on a monthly basis.

The Companys home equity and residential real estate loan portfolios continue to exhibit low delinquency rates as of December31, 2020. Home equity loans at December31, 2020 that are current with regard to the contractual terms of the loan agreement represent 98.3% of the total home equity portfolio. Residential real estate loans at December31, 2020 that are current with regards to the contractual terms of the loan agreements comprised 96.8% of total residential real estate loans outstanding. For more information regarding past due loans, see Table 13 in this report.

Outstanding COVID-19 related loan modifications for customers totaled approximately $345 million or 1.2% of total loans, excluding PPP loans as of December 31, 2020 as compared to $413 million or 1.4% as of September 30, 2020 and $1.7 billion or 6.2% as of June 30, 2020. The outstanding modifications primarily changed terms to interest-only payments.

The ratio of non-performing assets to total assets was 0.32% as of December31, 2020, compared to 0.42% at September30, 2020, and 0.36% at December31, 2019. Non-performing assets totaled $144.1 million at December31, 2020, compared to $182.3 million at September30, 2020 and $132.8 million at December31, 2019. Non-performing loans totaled $127.5 million, or 0.40% of total loans, at December31, 2020 compared to $173.1 million, or 0.54% of total loans, at September30, 2020 and $117.6 million, or 0.44% of total loans, at December31, 2019. The decrease in non-performing loans as of December31, 2020 as compared to September30, 2020 is primarily due to $30.1 million in payments received throughout the quarter. The payment activity was primarily driven by sales of underlying real property collateral, sales of operating businesses, and refinance activity. Other real estate owned ("OREO") of $16.6 million at December31, 2020 increased by $7.4 million compared to $9.2 million at September30, 2020 and increased $1.4 million compared to $15.2 million at December31, 2019. Management is pursuing the resolution of all non-performing assets. At this time, management believes OREO is appropriately valued at the lower of carrying value or fair value less estimated costs to sell. For more information regarding non-performing assets, see Table 14 in this report.

NON-INTEREST INCOME

Wealth management revenue increased by $1.8 million during the fourth quarter of 2020 as compared to the third quarter of 2020 primarily due to increased trust and asset management fees and brokerage commissions. Wealth management revenue is comprised of the trust and asset management revenue of The Chicago Trust Company and Great Lakes Advisors, the brokerage commissions, managed money fees and insurance product commissions at Wintrust Investments and fees from tax-deferred like-kind exchange services provided by the Chicago Deferred Exchange Company.

Mortgage banking revenue decreased by $21.7 million in the fourth quarter of 2020 as compared to the third quarter of 2020, primarily due to a $23.3 million decrease in production revenue. Production revenue decreasedas origination pipelines designated for saledeclined as compared to the prior quarter, due in part to the Company's intention to retain more loans for investment. Loans originated for sale were $2.4 billion in the fourth quarter of 2020, an increase of $124.7 million as compared to the third quarter of 2020. The percentage of origination volume from refinancing activities was 65% in the fourth quarter of 2020 as compared to 59% in the third quarter of 2020. Mortgage banking revenue includes revenue from activities related to originating, selling and servicing residential real estate loans for the secondary market.

During the fourth quarter of 2020, the fair value of the mortgage servicing rights portfolio increased primarily due tothe capitalization of $20.3 million of servicing rights during the fourth quarter of 2020. This increase was partially offset by a negative fair value adjustment of $5.2 million as well as a reduction in value of $9.0 million due to payoffs and paydowns of the existing portfolio. No economic hedges were outstanding relative to the mortgage servicing rights portfolio during the third or fourth quarter of 2020.

Other non-interest income increased by $6.4 million in the fourth quarter of 2020 as compared to thethird quarter of 2020primarily due to increased bank owned life insurance ("BOLI") revenue and income on partnership investments.

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

NON-INTEREST EXPENSE

Salaries and employee benefits expense increased by $7.1 million in the fourth quarter of 2020 as compared to the third quarter of 2020. The $7.1 million increase is comprised of an increase of $3.9 million in commissions and incentive compensation, an increase of $3.7 million in salaries expense, partially offset by a decrease of $520,000 in employee benefits expense.

The increase in commissions and incentive compensation is primarily due to increased commissions expense from higher levels of mortgage loan originations in the current quarter. The increase in salaries expense is primarily related to increased staffing costs to support mortgage origination and investment in technology related services to satisfy customer demands and create efficiencies in operations.

Occupancy expense totaled $19.7million in the fourth quarter of 2020, an increase of $3.9million as compared to the third quarter of 2020. This increase is primarily associated with an impairment charge of $1.4 million related to the planned closure of 10 bank branches, increased real estate tax assessment estimates and a higher level of utility charges.

Equipment expense totaled $20.6 million in the fourth quarter of 2020, an increase of $3.3 million as compared to the third quarter of 2020. This increase is primarily due to increased software licensing expenses.

Advertising and Marketing expense totaled $9.9 million in the fourth quarter of 2020, an increase of $2.0 million as compared to the third quarter of 2020. The increase in the fourth quarter relates primarily to increased digital advertising campaigns and corporate sponsorship costs. Marketing costs are incurred to promote the Company's brand, commercial banking capabilities and various products, to attract loans and deposits and to announce new branch openings as well as the expansion of the Company's non-bank businesses. The level of marketing expenditures depends on the timing of sponsorship programs utilized which are determined based on the market area, targeted audience, competition and various other factors.

Miscellaneous expense in the fourth quarter of 2020 increasedby $302,000 as compared to the third quarter of 2020. The fourth quarter of 2020 included $6.6 million of contingent consideration expense related to the previous acquisition of mortgage operations as compared to $6.3 million in the prior quarter. The liability for contingent consideration expense related to the previous acquisition of mortgage operations is based upon forward looking mortgage origination volumes and the estimated profitability of that operation.Should those assumptions change going forward, the liability may need to be increased or decreased. The contractual period covering contingent consideration ends in January 2023 and the final two years of the contract contemplate a lower ratio of contingent consideration relative to financial performance. As a result, the Company does not expect to have material adjustments to the contingent consideration liability in future periods. Miscellaneous expense also includes ATM expenses, correspondent bank charges, directors fees, telephone, travel and entertainment, corporate insurance, dues and subscriptions, problem loan expenses and lending origination costs that are not deferred.

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

INCOME TAXES

The Company recorded income tax expense of $33.5 million in the fourth quarter of 2020 compared to $30.0 million in the third quarter of 2020 and $30.7 million in the fourth quarter of 2019. The effective tax rates were 24.87% in the fourth quarter of 2020 compared to 21.83% in the third quarter of 2020 and 26.33% in the fourth quarter of 2019. The effective tax rate in the third quarter of 2020 reflects the impact of a $9.0 million state income tax benefit related to the settlement of an uncertain tax position.

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 fourth quarter of 2020, this unit expanded its loan portfolio, excluding PPP loans, and its deposit portfolio. However, the banking segment also experienced net interest margin compression primarily due to increased levels of liquidity as average interest bearing cash increased by $1.0 billion in the fourth quarter of 2020 as compared to the third quarter of 2020.

Mortgage banking revenue was $86.8 million for the fourth quarter of 2020, a decrease of $21.7 million as compared to the third quarter of 2020 primarily due to a $23.3 million decrease in production revenue as origination pipelines declined as compared to the prior quarter. Service charges on deposit accounts totaled $11.8 million in the fourth quarter of 2020, an increase of $344,000 as compared to the third quarter of 2020 primarily due to higher account analysis and overdraft fees. The Company's gross commercial and commercial real estate loan pipelines remained strong as of December31, 2020. Before the impact of scheduled payments and prepayments, gross commercial and commercial real estate loan pipelines were estimated to be approximately $1.1 billion to $1.3 billion at December31, 2020. When adjusted for the probability of closing, the pipelines were estimated to be approximately $650 million to $750 million at December31, 2020.

Specialty Finance

Through its specialty finance unit, the Company offers financing of insurance premiums for businesses and individuals, equipment financing through structured loans and lease products to customers in a variety of industries, accounts receivable financing and value-added, out-sourced administrative services and other services. Originations within the insurance premium financing receivables portfolio were $2.9 billion during the fourth quarter of 2020 and average balances increased by $49.9 million as compared to the third quarter of 2020. The increase in average balances was more than offset by margin compression in this portfolio resulting in a $3.6 million decrease in interest income attributed to the lower market rates of interest associated with the insurance premium finance receivables portfolio. The Company's leasing business grew during the fourth quarter of 2020, with its portfolio of assets, including capital leases, loans and equipment on operating leases, increasing by $95.2 million to $2.1 billion at the end of the fourth quarter of 2020. Revenues from the Company's out-sourced administrative services business were $1.3 million in the fourth quarter of 2020, an increase of $186,000 from the third quarter of 2020.

Wealth Management

Through four separate subsidiaries within its wealth management unit, the Company offers a full range of wealth management services, including trust and investment services, tax-deferred like-kind exchange services, asset management, securities brokerage services and 401(k) and retirement plan services. Wealth management revenue totaled $26.8 million in the fourth quarter of 2020, an increase of $1.8 million compared to the third quarter of 2020. Increases in asset management fees were primarily due to favorable equity market performance during the fourth quarter of 2020. At December31, 2020, the Companys wealth management subsidiaries had approximately $30.1 billion of assets under administration, which included $3.5 billion of assets owned by the Company and its subsidiary banks, representing a $1.9 billion increase from the $28.2 billion of assets under administration at September30, 2020.

ITEMS IMPACTING COMPARATIVE FINANCIAL RESULTS

Paycheck Protection Program

On March 27, 2020, the President of the United States signed the CARES Act, which authorized the Small Business Administration ("SBA") to guarantee loans under the PPP for small businesses who met the necessary eligibility requirements in order to keep their workers on the payroll. The Company began accepting applications on April 3, 2020. From such date through the end of 2020, the Company secured authorization from the SBA for and funded over 12,000 PPP loans with a carrying balance of approximately $3.4 billion. As of December31, 2020, the carrying balance of such loans was reduced to approximately $2.7 billion primarily resulting from forgiveness by the SBA.

Acquisitions

On November 1, 2019, the Company completed its acquisition of SBC, Incorporated (SBC). SBC was the parent company of Countryside Bank. Through this business combination, the Company acquired Countryside Bank's six banking offices located in Countryside, Burbank, Darien, Homer Glen, Oak Brook and Chicago, Illinois. As of the acquisition date, the Company acquired approximately $620 million in assets, including approximately $423 million in loans, and approximately $508 million in deposits. The Company recorded goodwill of approximately $40 million on the acquisition.

On October 7, 2019, the Company completed its acquisition of STC Bancshares Corp. (STC). STC was the parent company of STC Capital Bank. Through this business combination, the Company acquired STC Capital Bank's five banking offices located in the communities of St. Charles, Geneva and South Elgin, Illinois. As of the acquisition date, the Company acquired approximately $250 million in assets, including approximately $174 million in loans, and approximately $201 million in deposits.The Company recorded goodwill of approximately $19 million on the acquisition.

On May 24, 2019, the Company completed its acquisition of Rush-Oak Corporation ("ROC"). ROC was the parent company of Oak Bank. Through this business combination, the Company acquired Oak Bank's one banking location in Chicago, Illinois. As of the acquisition date, the Company acquired approximately $223 million in assets, including approximately $125 million in loans, and approximately $161 million in deposits. The Company recorded goodwill of approximately $12 million on the acquisition.

Adoption of New Credit Losses Accounting Standard

Beginning in 2020, the Company adopted the CECL standard, which impacted the measurement of the Companys allowance for credit losses (including the allowance for unfunded lending-related commitments). CECL replaced the previous incurred loss methodology, which delayed recognition until such loss was probable, with a methodology that reflects an estimate of lifetime expected credit losses considering current economic condition and forecasts. Though other assets, including investment securities and other receivables, were considered in-scope of the standard and required a measurement of the allowance for credit loss, the most significant impact of CECL remains within the Companys loan portfolios and related lending commitments. For more information regarding the adoption of CECL, see the "Asset Quality" section and the asset quality Tables 10-14 in this report.

WINTRUST FINANCIAL CORPORATIONSelected Financial Highlights

Three Months Ended Years Ended(Dollars inthousands, Dec 31, 2020 Sep 30, 2020 Jun 30, 2020 Mar 31, 2020 Dec 31, 2019 Dec 31, 2020 Dec 31, 2019except pershare data)Selected Financial Condition Data (at end of period): Total assets $ 45,080,768 $ 43,731,718 $ 43,540,017 $ 38,799,847 $ 36,620,583 Total loans ^ 32,079,073 32,135,555 31,402,903 27,807,321 26,800,290 (1)Total deposits 37,092,651 35,844,422 35,651,874 31,461,660 30,107,138 Juniorsubordinated 253,566 253,566 253,566 253,566 253,566 debenturesTotalshareholders? 4,115,995 4,074,089 3,990,218 3,700,393 3,691,250 equitySelected Statements of Income Data: Net interest $ 259,397 $ 255,936 $ 263,131 $ 261,443 $ 261,879 $ 1,039,907 $ 1,054,919 incomeNet revenue ^ 417,758 426,529 425,124 374,685 374,099 1,644,096 1,462,091 (2)Net income 101,204 107,315 21,659 62,812 85,964 292,990 355,697 Pre-tax income,excludingprovision for 135,891 162,310 165,756 140,044 124,508 604,001 533,965 credit losses(non-GAAP) ^(3)Net income percommon share ? 1.64 1.68 0.34 1.05 1.46 4.72 6.11 BasicNet income percommon share ? 1.63 1.67 0.34 1.04 1.44 4.68 6.03 DilutedSelected Financial Ratios and Other Data: Performance Ratios: Net interest 2.53 % 2.56 % 2.73 % 3.12 % 3.17 % 2.72 % 3.45 %marginNet interestmargin - fullytaxable 2.54 2.57 2.74 3.14 3.19 2.73 3.47 equivalent(non-GAAP) ^(3)Non-interestincome to 1.44 1.58 1.55 1.24 1.25 1.46 1.23 average assetsNon-interestexpense to 2.56 2.45 2.48 2.58 2.78 2.51 2.79 average assetsNet overhead 1.12 0.87 0.93 1.33 1.53 1.05 1.57 ratio ^(4)Return on 0.92 0.99 0.21 0.69 0.96 0.71 1.07 average assetsReturn onaverage common 10.30 10.66 2.17 6.82 9.52 7.50 10.41 equityReturn onaveragetangible common 12.95 13.43 2.95 8.73 12.17 9.54 13.22 equity(non-GAAP) ^(3)Average total $ 43,810,005 $ 42,962,844 $ 42,042,729 $ 36,625,490 $ 35,645,190 $ 41,371,339 $ 33,232,083 assetsAverage totalshareholders? 4,050,286 4,034,902 3,908,846 3,710,169 3,622,184 3,926,688 3,461,535 equityAverage loansto average 87.8 % 89.6 % 87.8 % 90.1 % 88.8 % 88.8 % 91.4 %deposits ratioPeriod-endloans to 86.5 89.7 88.1 88.4 89.0 deposits ratioCommon Share Data at end of period: Market priceper common $ 61.09 $ 40.05 $ 43.62 $ 32.86 $ 70.90 shareBook value per 65.24 63.57 62.14 62.13 61.68 common shareTangible bookvalue per 53.23 51.70 50.23 50.18 49.70 common share(non-GAAP) ^(3)Common shares 56,769,625 57,601,991 57,573,672 57,545,352 57,821,891 outstandingOther Data at end of period: Tier 1 leverage 8.1 % 8.2 % 8.1 % 8.5 % 8.7 % ratio ^(5)Risk-based capital ratios:Tier 1 capital 10.0 10.2 10.1 9.3 9.6 ratio ^(5)Common equitytier 1 capital 8.8 9.0 8.8 8.9 9.2 ratio^(5)Total capital 12.6 12.9 12.8 11.9 12.2 ratio ^(5)Allowance forcredit losses ^ $ 379,969 $ 388,971 $ 373,174 $ 253,482 $ 158,461 (6)Allowance forloan andunfundedlending-related 1.18 % 1.21 % 1.19 % 0.91 % 0.59 % commitmentlosses to totalloansNumber of: Bank 15 15 15 15 15 subsidiariesBanking offices 181 182 186 187 187

(1)Excludes mortgage loans held-for-sale.(2)Net revenue includes net interest income and non-interest income.(3)See Supplemental Non-GAAP Financial Measures/Ratios at Table 18 for additional information on this performance measure/ratio.(4)The net overhead ratio is calculated by netting total non-interest expense and total non-interest income, annualizing this amount, and dividing by that periods total average assets. A lower ratio indicates a higher degree of efficiency.(5)Capital ratios for current quarter-end are estimated.(6)The allowance for credit losses includes both the allowance for loan losses and the allowance for unfunded lending-related commitments. Effective January 1, 2020, the allowance for credit losses also includes the allowance for investment securities as a result of the adoption of Accounting Standard Update ("ASU") 2016-13, Financial Instruments - Credit Losses.

WINTRUST FINANCIAL CORPORATION

Key Operating Measures

Wintrusts key operating measures and growth rates for the fourth quarter of 2020, as comparedto the third quarter of 2020 (sequential quarter) and fourth quarter of 2019 (linked quarter), are shown in the table below:

Three Months Ended % or^(1) % or basispoint basispoint(Dollars in (bp) (bp)thousands, change from change fromexcept per Dec 31, 2020 Sep 30, 2020 Dec 31, 2019 3rd Quarter 4th Quartershare data) 2020 2019

Net income $ 101,204 $ 107,315 $ 85,964 (6 ) % 18 %Pre-taxincome,excludingprovision for 135,891 162,310 124,508 (16 ) 9 credit losses(non-GAAP) ^(2)Net incomeper common 1.63 1.67 1.44 (2 ) 13 share ?dilutedNet revenue ^ 417,758 426,529 374,099 (2 ) 12 (3)Net interest 259,397 255,936 261,879 1 (1 ) incomeNet interest 2.53 % 2.56 % 3.17 % (3 ) bps (64 ) bpsmarginNet interestmargin -fully taxable 2.54 2.57 3.19 (3 ) (65 ) equivalent(non-GAAP) ^(2)Net overhead 1.12 0.87 1.53 25 (41 ) ratio ^(4)Return onaverage 0.92 0.99 0.96 (7 ) (4 ) assetsReturn onaverage 10.30 10.66 9.52 (36 ) 78 common equityReturn onaveragetangible 12.95 13.43 12.17 (48 ) 78 common equity(non-GAAP) ^(2)At end of periodTotal assets $ 45,080,768 $ 43,731,718 $ 36,620,583 12 % 23 %Total loans ^ 32,079,073 32,135,555 26,800,290 (1 ) 20 (5)Total 37,092,651 35,844,422 30,107,138 16 23 depositsTotalshareholders? 4,115,995 4,074,089 3,691,250 13 12 equity

(1)Period-end balance sheet percentage changes are annualized.(2)See "Supplemental Non-GAAP Financial Measures/Ratios" at Table 18 for additional information on this performance measure/ratio.(3)Net revenue is net interest income plus non-interest income.(4)The net overhead ratio is calculated by netting total non-interest expense and total non-interest income, annualizing this amount, and dividing by that period's average total assets. A lower ratio indicates a higher degree of efficiency.(5)Excludes mortgage loans held-for-sale.

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

WINTRUST FINANCIAL CORPORATION AND SUBSIDIARIESCONSOLIDATED STATEMENTS OF CONDITION

(Unaudited) (Unaudited) (Unaudited) (Unaudited) Dec 31, Sep 30, Jun 30, Mar 31, Dec 31,(In thousands) 2020 2020 2020 2020 2019Assets Cash and due from $ 322,415 $ 308,639 $ 344,999 $ 349,118 $ 286,167 banksFederal funds soldand securities 59 56 58 309 309 purchased underresale agreementsInterest-bearingdeposits with 4,802,527 3,825,823 4,015,072 1,943,743 2,164,560 banksAvailable-for-salesecurities, at 3,055,839 2,946,459 3,194,961 3,570,959 3,106,214 fair valueHeld-to-maturitysecurities, at 579,138 560,267 728,465 865,376 1,134,400 amortized costTrading account 671 1,720 890 2,257 1,068 securitiesEquity securitieswith readily 90,862 54,398 52,460 47,310 50,840 determinable fairvalueFederal Home LoanBank and Federal 135,588 135,568 135,571 134,546 100,739 Reserve Bank stockBrokerage customer 17,436 16,818 14,623 16,293 16,573 receivablesMortgage loans 1,272,090 959,671 833,163 656,934 377,313 held-for-saleLoans, net of 32,079,073 32,135,555 31,402,903 27,807,321 26,800,290 unearned incomeAllowance for loan (319,374 ) (325,959 ) (313,510 ) (216,050 ) (156,828 )lossesNet loans 31,759,699 31,809,596 31,089,393 27,591,271 26,643,462 Premises and 768,808 774,288 769,909 764,583 754,328 equipment, netLease investments, 242,434 230,373 237,040 207,147 231,192 netAccrued interestreceivable and 1,351,455 1,424,728 1,437,832 1,460,168 1,061,141 other assetsTrade datesecurities ? ? ? 502,207 ? receivableGoodwill 645,707 644,644 644,213 643,441 645,220 Other intangible 36,040 38,670 41,368 44,185 47,057 assetsTotal assets $ 45,080,768 $ 43,731,718 $ 43,540,017 $ 38,799,847 $ 36,620,583 Liabilities andShareholders? EquityDeposits: Non-interest $ 11,748,455 $ 10,409,747 $ 10,204,791 $ 7,556,755 $ 7,216,758 bearingInterest bearing 25,344,196 25,434,675 25,447,083 23,904,905 22,890,380 Total deposits 37,092,651 35,844,422 35,651,874 31,461,660 30,107,138 Federal Home Loan 1,228,429 1,228,422 1,228,416 1,174,894 674,870 Bank advancesOther borrowings 518,928 507,395 508,535 487,503 418,174 Subordinated notes 436,506 436,385 436,298 436,179 436,095 Juniorsubordinated 253,566 253,566 253,566 253,566 253,566 debenturesTrade date 200,907 ? ? ? ? securities payableAccrued interestpayable and other 1,233,786 1,387,439 1,471,110 1,285,652 1,039,490 liabilitiesTotal liabilities 40,964,773 39,657,629 39,549,799 35,099,454 32,929,333 Shareholders? Equity:Preferred stock 412,500 412,500 412,500 125,000 125,000 Common stock 58,473 58,323 58,294 58,266 57,951 Surplus 1,649,990 1,647,049 1,643,864 1,652,063 1,650,278 Treasury stock (100,363 ) (44,891 ) (44,891 ) (44,891 ) (6,931 )Retained earnings 2,080,013 2,001,949 1,921,048 1,917,558 1,899,630 Accumulated othercomprehensive 15,382 (841 ) (597 ) (7,603 ) (34,678 )income (loss)Totalshareholders? 4,115,995 4,074,089 3,990,218 3,700,393 3,691,250 equityTotal liabilitiesand shareholders? $ 45,080,768 $ 43,731,718 $ 43,540,017 $ 38,799,847 $ 36,620,583 equity

WINTRUST FINANCIAL CORPORATION AND SUBSIDIARIESCONSOLIDATED STATEMENTS OF INCOME (UNAUDITED)

Three Months Ended Years Ended(In thousands, Dec 31, Sep Jun 30, Mar 31, Dec 31,except per share 2020 30,2020 2020 2020 2019 Dec 31, 2020 Dec 31, 2019data)Interest income Interest and $ 280,185 $ 280,479 $ 294,746 $ 301,839 $ 308,055 $ 1,157,249 $ 1,228,480 fees on loansMortgage loans 6,357 5,791 4,764 3,165 3,201 20,077 11,992 held-for-saleInterest-bearingdeposits with 1,294 1,181 1,310 4,768 8,971 8,553 29,803 banksFederal fundssold andsecurities ? ? 16 86 390 102 700 purchased underresaleagreementsInvestment 18,243 21,819 27,105 32,467 27,611 99,634 108,046 securitiesTrading account 11 6 13 7 6 37 39 securitiesFederal HomeLoan Bank and 1,775 1,774 1,765 1,577 1,328 6,891 5,416 Federal ReserveBank stockBrokeragecustomer 116 106 97 158 169 477 666 receivablesTotal interest 307,981 311,156 329,816 344,067 349,731 1,293,020 1,385,142 incomeInterest expense Interest on 32,602 39,084 50,057 67,435 74,724 189,178 278,892 depositsInterest onFederal Home 4,952 4,947 4,934 3,360 1,461 18,193 9,878 Loan BankadvancesInterest on 2,779 3,012 3,436 3,546 3,273 12,773 13,897 other borrowingsInterest onsubordinated 5,509 5,474 5,506 5,472 5,504 21,961 15,555 notesInterest onjunior 2,742 2,703 2,752 2,811 2,890 11,008 12,001 subordinateddebenturesTotal interest 48,584 55,220 66,685 82,624 87,852 253,113 330,223 expenseNet interest 259,397 255,936 263,131 261,443 261,879 1,039,907 1,054,919 incomeProvision for 1,180 25,026 135,053 52,961 7,826 214,220 53,864 credit lossesNet interestincome after 258,217 230,910 128,078 208,482 254,053 825,687 1,001,055 provision forcredit lossesNon-interest incomeWealth 26,802 24,957 22,636 25,941 24,999 100,336 97,114 managementMortgage banking 86,819 108,544 102,324 48,326 47,860 346,013 154,293 Service chargeson deposit 11,841 11,497 10,420 11,265 10,973 45,023 39,070 accountsGains (losses)on investment 1,214 411 808 (4,359 ) 587 (1,926 ) 3,525 securities, netFees fromcovered call ? ? ? 2,292 1,243 2,292 3,670 optionsTrading (losses) (102 ) 183 (634 ) (451 ) 46 (1,004 ) (158 )gains, netOperating lease 12,118 11,717 11,785 11,984 12,487 47,604 47,041 income, netOther 19,669 13,284 14,654 18,244 14,025 65,851 62,617 Totalnon-interest 158,361 170,593 161,993 113,242 112,220 604,189 407,172 incomeNon-interest expenseSalaries andemployee 171,116 164,042 154,156 136,762 145,941 626,076 546,420 benefitsEquipment 20,565 17,251 15,846 14,834 14,485 68,496 52,328 Operating leaseequipment 9,938 9,425 9,292 9,260 9,766 37,915 35,760 depreciationOccupancy, net 19,687 15,830 16,893 17,547 17,132 69,957 64,289 Data processing 5,728 5,689 10,406 8,373 7,569 30,196 27,820 Advertising and 9,850 7,880 7,704 10,862 12,517 36,296 48,595 marketingProfessional 6,530 6,488 7,687 6,721 7,650 27,426 27,471 feesAmortization ofother intangible 2,634 2,701 2,820 2,863 3,017 11,018 11,844 assetsFDIC insurance 7,016 6,772 7,081 4,135 1,348 25,004 9,199 OREO expense, (114 ) (168 ) 237 (876 ) 536 (921 ) 3,628 netOther 28,917 28,309 27,246 24,160 29,630 108,632 100,772 Totalnon-interest 281,867 264,219 259,368 234,641 249,591 1,040,095 928,126 expenseIncome before 134,711 137,284 30,703 87,083 116,682 389,781 480,101 taxesIncome tax 33,507 29,969 9,044 24,271 30,718 96,791 124,404 expenseNet income $ 101,204 $ 107,315 $ 21,659 $ 62,812 $ 85,964 $ 292,990 $ 355,697 Preferred stock 6,991 10,286 2,050 2,050 2,050 21,377 8,200 dividendsNet incomeapplicable to $ 94,213 $ 97,029 $ 19,609 $ 60,762 $ 83,914 $ 271,613 $ 347,497 common sharesNet income percommon share - $ 1.64 $ 1.68 $ 0.34 $ 1.05 $ 1.46 $ 4.72 $ 6.11 BasicNet income percommon share - $ 1.63 $ 1.67 $ 0.34 $ 1.04 $ 1.44 $ 4.68 $ 6.03 DilutedCash dividendsdeclared per $ 0.28 $ 0.28 $ 0.28 $ 0.28 $ 0.25 $ 1.12 $ 1.00 common shareWeighted averagecommon shares 57,309 57,597 57,567 57,620 57,538 57,523 56,857 outstandingDilutivepotential common 588 449 414 575 874 496 762 sharesAverage commonshares and 57,897 58,046 57,981 58,195 58,412 58,019 57,619 dilutive commonshares

TABLE 1: LOAN PORTFOLIO MIX AND GROWTH RATES AND COMMERCIAL REAL ESTATE BY STATE

% Growth From Sep Dec(Dollars in Dec 31, 2020 Sep 30, 2020 Jun 30, 2020 Mar 31, 2020 Dec 31, 2019 30, 31,thousands) 2020 ^ 2019 (1)Balance: Mortgage loansheld-for-sale,excluding earlybuy-out $ 927,307 $ 862,924 $ 814,667 $ 642,386 $ 361,309 30 % 157 %exercised loansguaranteed byU.S. GovernmentAgenciesMortgage loansheld-for-sale,early buy-outexercised loans 344,783 96,747 18,496 14,548 16,004 1020 2054 guaranteed byU.S. GovernmentAgenciesTotal mortgageloans $ 1,272,090 $ 959,671 $ 833,163 $ 656,934 $ 377,313 130 % 237 %held-for-sale Commercial Commercial,industrial, and $ 9,240,046 $ 8,897,986 $ 8,523,864 $ 9,025,886 $ 8,285,920 15 % 12 %otherCommercial PPP 2,715,921 3,379,013 3,335,368 ? ? (78 ) 100 loansCommercial real estateConstruction and 1,371,802 1,333,149 1,285,282 1,237,274 1,200,783 12 14 developmentNon-construction 7,122,330 7,089,993 6,915,463 6,948,257 6,819,493 2 4 Home equity 425,263 446,274 466,596 494,655 513,066 (19 ) (17 )Residential real estateResidential realestate loans for 1,214,744 1,143,908 1,186,768 1,244,690 1,231,123 25 (1 )investmentResidentialmortgage loans,early buy-outeligible loans 44,854 240,902 240,661 132,699 123,098 (324 ) (64 )guaranteed byU.S. GovernmentAgenciesPremium Finance receivablesCommercial 4,054,489 4,060,144 3,999,774 3,465,055 3,442,027 (1 ) 18 insuranceLife insurance 5,857,436 5,488,832 5,400,802 5,221,639 5,074,602 27 15 Consumer and 32,188 55,354 48,325 37,166 110,178 (166 ) (71 )otherTotal loans, net )of unearned $ 32,079,073 $ 32,135,555 $ 31,402,903 $ 27,807,321 $ 26,800,290 (1 % 20 %incomeMix: Mortgage loansheld-for-sale,excluding earlybuy-out 73 % 90 % 98 % 98 % 96 % exercised loansguaranteed byU.S. GovernmentAgenciesMortgage loansheld-for-sale,early buy-outexercised loans 27 10 2 2 4 guaranteed byU.S. GovernmentAgenciesTotal mortgageloans 100 % 100 % 100 % 100 % 100 % held-for-sale Commercial Commercial,industrial, and 29 % 28 % 28 % 32 % 31 % otherCommercial PPP 8 11 11 ? ? loansCommercial real estateConstruction and 4 4 4 4 4 developmentNon-construction 22 22 22 25 26 Home equity 1 1 1 2 2 Residential real estateResidential realestate loans for 4 3 3 4 5 investmentResidentialmortgage loans,early buy-outeligible loans 1 1 1 1 0 guaranteed byU.S. GovernmentAgenciesPremium Finance receivablesCommercial 13 13 13 13 13 insuranceLife insurance 18 17 17 19 19 Consumer and 0 0 0 0 0 otherTotal loans, netof unearned 100 % 100 % 100 % 100 % 100 % income

(1)Annualized.

Dec 31, 2020 Sep 30, 2020 Jun 30, 2020 Mar 31, 2020 Dec 31, 2019(Dollars % of % of % of % of % ofin Balance Total Balance Total Balance Total Balance Total Balance Total thousands) Balance Balance Balance Balance BalanceCommercial real estate - collateral location by state:Illinois $ 6,243,651 73.5 % $ 6,270,584 74.4 % $ 6,198,486 75.6 % $ 6,171,606 75.4 % $ 6,176,353 77.0 %Wisconsin 779,390 9.2 783,241 9.3 760,839 9.3 793,145 9.7 744,975 9.3 Totalprimary $ 7,023,041 82.7 % $ 7,053,825 83.7 % $ 6,959,325 84.9 % $ 6,964,751 85.1 % $ 6,921,328 86.3 %marketsIndiana 301,177 3.5 265,905 3.2 249,423 3.0 249,680 3.1 218,963 2.7 Florida 131,259 1.5 133,602 1.6 133,810 1.6 126,786 1.5 114,629 1.4 Arizona 63,494 0.8 79,086 0.9 78,135 1.0 72,214 0.9 64,022 0.8 California 85,624 1.0 82,852 1.0 81,634 1.0 63,883 0.8 64,345 0.8 Texas 79,406 0.9 55,229 0.7 48,082 0.6 59,647 0.8 29,586 0.5 Other 810,131 9.6 752,643 8.9 650,336 7.9 648,570 7.8 607,403 7.5 Totalcommercial $ 8,494,132 100 % $ 8,423,142 100 % $ 8,200,745 100 % $ 8,185,531 100 % $ 8,020,276 100 %realestate

TABLE 2: DEPOSIT PORTFOLIO MIX AND GROWTH RATES

% Growth From(Dollars in Sep 30, Decthousands) Dec 31, 2020 Sep 30, 2020 Jun 30, 2020 Mar 31, 2020 Dec 31, 2019 2020^ 31, (1) 2019Balance: Non-interest $ 11,748,455 $ 10,409,747 $ 10,204,791 $ 7,556,755 $ 7,216,758 51 % 63 %bearingNOW andinterest-bearing 3,349,021 3,294,071 3,440,348 3,181,159 3,093,159 7 8 demand depositsWealthmanagement 4,138,712 4,235,583 4,433,020 3,936,968 3,123,063 (9 ) 33 deposits ^(2)Money market 9,348,806 9,423,653 9,288,976 8,114,659 7,854,189 (3 ) 19 Savings 3,531,029 3,415,073 3,447,352 3,282,340 3,196,698 14 10 Timecertificates of 4,976,628 5,066,295 4,837,387 5,389,779 5,623,271 (7 ) (11 )depositTotal deposits $ 37,092,651 $ 35,844,422 $ 35,651,874 $ 31,461,660 $ 30,107,138 14 % 23 %Mix: Non-interest 32 % 29 % 29 % 24 % 24 % bearingNOW andinterest-bearing 9 9 10 10 10 demand depositsWealthmanagement 11 12 12 13 10 deposits ^(2)Money market 25 26 25 26 26 Savings 10 10 10 10 11 Timecertificates of 13 14 14 17 19 depositTotal deposits 100 % 100 % 100 % 100 % 100 %

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

TABLE 3: TIME CERTIFICATES OF DEPOSIT MATURITY/RE-PRICING ANALYSISAs of December31, 2020

Total Time Weighted-Average(Dollars in thousands) Certificatesof Rate of Maturing Deposit Time Certificates of Deposit ^(1)1-3 months $ 872,282 1.74 %4-6 months 1,327,476 1.82 7-9 months 948,251 1.57 10-12 months 760,907 1.19 13-18 months 628,017 0.85 19-24 months 224,885 0.98 24+ months 214,810 1.02 Total $ 4,976,628 1.47 %

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

TABLE 4: QUARTERLY AVERAGE BALANCES

Average Balance for three months ended, Dec 31, Sep 30, Jun 30, Mar 31, Dec 31,(In thousands) 2020 2020 2020 2020 2019Interest-bearingdeposits with banks $ 4,381,040 $ 3,411,164 $ 3,240,167 $ 1,418,809 $ 2,206,251 and cash equivalents^(1)Investment 3,534,594 3,789,422 4,309,471 4,780,709 3,909,699 securities ^(2)FHLB and FRB stock 135,569 135,567 135,360 114,829 94,843 Liquidity management 8,051,203 7,336,153 7,684,998 6,314,347 6,210,793 assets ^(3)Other earning assets 18,716 16,656 16,917 19,166 18,353 ^(3)(4)Mortgage loans 893,395 822,908 705,702 403,262 381,878 held-for-saleLoans, net ofunearned income ^(3) 31,783,279 31,634,608 30,336,626 26,936,728 26,137,722 (5)Total earning assets 40,746,593 39,810,325 38,744,243 33,673,503 32,748,746 ^(3)Allowance for loanand investment (336,139 ) (321,732 ) (222,485 ) (176,291 ) (167,759 )security losses ^(6)Cash and due from 344,536 345,438 352,423 321,982 316,631 banksOther assets 3,055,015 3,128,813 3,168,548 2,806,296 2,747,572 Total assets $ 43,810,005 $ 42,962,844 $ 42,042,729 $ 36,625,490 $ 35,645,190 NOW andinterest-bearing $ 3,320,527 $ 3,435,089 $ 3,323,124 $ 3,113,733 $ 3,016,991 demand depositsWealth management 4,066,948 4,239,300 4,380,996 2,838,719 2,934,292 depositsMoney market 9,435,344 9,332,668 8,727,966 7,990,775 7,647,635 accountsSavings accounts 3,413,388 3,419,586 3,394,480 3,189,835 3,028,763 Time deposits 5,043,558 4,900,839 5,104,701 5,526,407 5,682,449 Interest-bearing 25,279,765 25,327,482 24,931,267 22,659,469 22,310,130 depositsFederal Home Loan 1,228,425 1,228,421 1,214,375 951,613 596,594 Bank advancesOther borrowings 510,725 512,787 493,350 469,577 415,092 Subordinated notes 436,433 436,323 436,226 436,119 436,025 Junior subordinated 253,566 253,566 253,566 253,566 253,566 debenturesTotalinterest-bearing 27,708,914 27,758,579 27,328,784 24,770,344 24,011,407 liabilitiesNon-interest-bearing 10,874,912 9,988,769 9,607,528 7,235,177 7,128,166 depositsOther liabilities 1,175,893 1,180,594 1,197,571 909,800 883,433 Equity 4,050,286 4,034,902 3,908,846 3,710,169 3,622,184 Total liabilitiesand shareholders? $ 43,810,005 $ 42,962,844 $ 42,042,729 $ 36,625,490 $ 35,645,190 equity Net free funds/ $ 13,037,679 $ 12,051,746 $ 11,415,459 $ 8,903,159 $ 8,737,339 contribution ^(7)

(1)Includes interest-bearing deposits from banks, federal funds sold and securities purchased under resale agreements.(2)Investment securities includes investment securities classified as available-for-sale and held-to-maturity, and equity securities with readily determinable fair values. Equity securities without readily determinable fair values are included within other assets.(3)See "Supplemental Non-GAAP Financial Measures/Ratios" at Table 18 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)Effective January 1, 2020 this includes the allowance for investment security losses as a result of the adoption of ASU 2016-13, Financial Instruments - Credit Losses.(7)Net free funds are the difference between total average earning assets and total average interest-bearing liabilities. The estimated contribution to net interest margin from net free funds is calculated using the rate paid for total interest-bearing liabilities.

TABLE 5: QUARTERLY NET INTEREST INCOME

Net Interest Income for three months ended, Dec 31, Sep 30, Jun 30, Mar 31, Dec 31,(In thousands) 2020 2020 2020 2020 2019Interest income: Interest-bearingdeposits with $ 1,294 $ 1,181 $ 1,326 $ 4,854 $ 9,361 banks and cashequivalentsInvestment 18,773 22,365 27,643 33,018 28,184 securitiesFHLB and FRB stock 1,775 1,774 1,765 1,577 1,328 Liquiditymanagement assets 21,842 25,320 30,734 39,449 38,873 ^(1)Other earning 130 113 113 167 176 assets ^(1)Mortgage loans 6,357 5,791 4,764 3,165 3,201 held-for-saleLoans, net ofunearned income ^ 280,509 280,960 295,322 302,699 308,947 (1)Total interest $ 308,838 $ 312,184 $ 330,933 $ 345,480 $ 351,197 income Interest expense: NOW andinterest-bearing $ 1,074 $ 1,342 $ 1,561 $ 3,665 $ 4,622 demand depositsWealth management 7,436 7,662 7,244 6,935 7,867 depositsMoney market 3,740 7,245 13,140 22,363 25,603 accountsSavings accounts 773 2,104 3,840 5,790 6,145 Time deposits 19,579 20,731 24,272 28,682 30,487 Interest-bearing 32,602 39,084 50,057 67,435 74,724 depositsFederal Home Loan 4,952 4,947 4,934 3,360 1,461 Bank advancesOther borrowings 2,779 3,012 3,436 3,546 3,273 Subordinated notes 5,509 5,474 5,506 5,472 5,504 Juniorsubordinated 2,742 2,703 2,752 2,811 2,890 debenturesTotal interest $ 48,584 $ 55,220 $ 66,685 $ 82,624 $ 87,852 expense Less: Fullytaxable-equivalent (857 ) (1,028 ) (1,117 ) (1,413 ) (1,466 )adjustmentNet interest 259,397 255,936 263,131 261,443 261,879 income (GAAP) ^(2)Fullytaxable-equivalent 857 1,028 1,117 1,413 1,466 adjustmentNet interestincome, fully $ 260,254 $ 256,964 $ 264,248 $ 262,856 $ 263,345 taxable-equivalent(non-GAAP) ^(2)

(1)Interest income on tax-advantaged loans, trading securities and investment securities reflects a taxable-equivalent adjustment based on the marginal federal corporate tax rate in effect as of the applicable period. (2)See "Supplemental Non-GAAP Financial Measures/Ratios" at Table 18 for additional information on this performance measure/ratio.

TABLE 6: QUARTERLY NET INTEREST MARGIN

Net Interest Margin for three months ended, Dec 31, Sep 30, Jun Mar 31, Dec 2020 2020 30,2020 2020 31,2019Yield earned on: Interest-bearingdeposits with 0.12 % 0.14 % 0.16 % 1.38 % 1.68 %banks and cashequivalentsInvestment 2.11 2.35 2.58 2.78 2.86 securitiesFHLB and FRB stock 5.21 5.21 5.24 5.52 5.55 Liquidity 1.08 1.37 1.61 2.51 2.48 management assetsOther earning 2.79 2.71 2.71 3.50 3.83 assetsMortgage loans 2.83 2.80 2.72 3.16 3.33 held-for-saleLoans, net of 3.51 3.53 3.92 4.52 4.69 unearned incomeTotal earning 3.02 % 3.12 % 3.44 % 4.13 % 4.25 %assets Rate paid on: NOW andinterest-bearing 0.13 % 0.16 % 0.19 % 0.47 % 0.61 %demand depositsWealth management 0.73 0.72 0.67 0.98 1.06 depositsMoney market 0.16 0.31 0.61 1.13 1.33 accountsSavings accounts 0.09 0.24 0.45 0.73 0.80 Time deposits 1.54 1.68 1.91 2.09 2.13 Interest-bearing 0.51 0.61 0.81 1.20 1.33 depositsFederal Home Loan 1.60 1.60 1.63 1.42 0.97 Bank advancesOther borrowings 2.16 2.34 2.80 3.04 3.13 Subordinated notes 5.05 5.02 5.05 5.02 5.05 Juniorsubordinated 4.23 4.17 4.29 4.39 4.46 debenturesTotalinterest-bearing 0.70 % 0.79 % 0.98 % 1.34 % 1.45 %liabilities Interest rate 2.32 % 2.33 % 2.46 % 2.79 % 2.80 %spread^ (1)(2)Less: Fullytaxable-equivalent (0.01 ) (0.01 ) (0.01 ) (0.02 ) (0.02 )adjustmentNet free funds/ 0.22 0.24 0.28 0.35 0.39 contribution^ (3)Net interest 2.53 % 2.56 % 2.73 % 3.12 % 3.17 %margin (GAAP)^ (2)Fullytaxable-equivalent 0.01 0.01 0.01 0.02 0.02 adjustmentNet interestmargin, fully 2.54 % 2.57 % 2.74 % 3.14 % 3.19 %taxable-equivalent(non-GAAP)^ (2)

(1)Interest rate spread is the difference between the yield earned on earning assets and the rate paid on interest-bearing liabilities.(2)See "Supplemental Non-GAAP Financial Measures/Ratios" at Table 18 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 Interest Yield/Rate for years ended, for years ended, for years ended,(Dollars in Dec 31, 2020 Dec 31, Dec 31, 2020 Dec 31, 2019 Dec 31, Dec 31,thousands) 2019 2020 2019Interest-bearingdeposits with banks $ 3,117,075 $ 1,494,418 $ 8,655 $ 30,503 0.28 % 2.04 %and cash equivalents^(1)Investment 4,101,136 3,651,091 101,799 110,326 2.48 3.02 securities ^(2)FHLB and FRB stock 130,360 96,924 6,891 5,416 5.29 5.59 Liquidity management $ 7,348,571 $ 5,242,433 $ 117,345 $ 146,245 1.60 % 2.79 %assets ^(3)(4)Other earning assets 17,863 16,385 523 714 2.94 4.36 ^(3)(4)(5)Mortgage loans 707,147 308,645 20,077 11,992 2.84 3.89 held-for-saleLoans, net ofunearned income ^(3) 30,181,204 24,986,736 1,159,490 1,232,415 3.84 4.93 (4)(6)Total earning assets $ 38,254,785 $ 30,554,199 $ 1,297,435 $ 1,391,366 3.39 % 4.55 %^(4)Allowance for loanand investment (264,516 ) (164,587 ) security losses ^(7)Cash and due from 341,116 292,807 banksOther assets 3,039,954 2,549,664 Total assets $ 41,371,339 $ 33,232,083 NOW andinterest-bearing $ 3,298,554 $ 2,903,441 $ 7,642 $ 20,079 0.23 % 0.69 %demand depositsWealth management 3,882,975 2,761,936 29,277 31,121 0.75 1.13 depositsMoney market 8,874,488 6,659,376 46,488 91,940 0.52 1.38 accountsSavings accounts 3,354,662 2,834,381 12,507 20,975 0.37 0.74 Time deposits 5,142,938 5,467,192 93,264 114,777 1.81 2.10 Interest-bearing $ 24,553,617 $ 20,626,326 $ 189,178 $ 278,892 0.77 % 1.35 %depositsFederal Home Loan 1,156,106 658,669 18,193 9,878 1.57 1.50 Bank advancesOther borrowings 496,693 428,834 12,773 13,897 2.57 3.24 Subordinated notes 436,275 309,178 21,961 15,555 5.03 5.03 Junior subordinated 253,566 253,566 11,008 12,001 4.27 4.67 debenturesTotalinterest-bearing $ 26,896,257 $ 22,276,573 $ 253,113 $ 330,223 0.94 % 1.48 %liabilitiesNon-interest-bearing 9,432,090 6,711,298 depositsOther liabilities 1,116,304 782,677 Equity 3,926,688 3,461,535 Total liabilitiesand shareholders? $ 41,371,339 $ 33,232,083 equityInterest rate spread 2.45 % 3.07 %^(4)(8)Less: Fullytaxable-equivalent (4,415 ) (6,224 ) (0.01 ) (0.02 )adjustmentNet free funds/ $ 11,358,528 $ 8,277,626 0.28 0.40 contribution ^(9)Net interest income/ $ 1,039,907 1,054,919 2.72 % 3.45 %margin (GAAP)^ (4)Fullytaxable-equivalent 4,415 6,224 0.01 0.02 adjustmentNet interest income/margin, fully $ 1,044,322 $ 1,061,143 2.73 % 3.47 %taxable-equivalent(non-GAAP) ^(4)

(1)Includes interest-bearing deposits from banks, federal funds sold and securities purchased under resale agreements.(2)Investment securities includes investment securities classified as available-for-sale and held-to-maturity, and equity securities with readily determinable fair values. Equity securities without readily determinable fair values are included within other assets.(3)Interest income on tax-advantaged loans, trading securities and investment securities reflects a taxable-equivalent adjustment based on a marginal federal corporate tax rate in effect as of the applicable period. (4)See Supplemental Non-GAAP Financial Measures/Ratios at Table 18 for additional information on this performance ratio.(5)Other earning assets include brokerage customer receivables and trading account securities.(6)Loans, net of unearned income, include non-accrual loans.(7)Effective January 1, 2020 this includes the allowance for investment security losses as a result of the adoption of ASU 2016-13, Financial Instruments - Credit Losses.(8)Interest rate spread is the difference between the yield earned on earning assets and the rate paid on interest-bearing liabilities.(9)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 of 100 and 200 basis points and a decrease of 100 basis points. The Static Shock Scenario results incorporate actual cash flows and repricing characteristics for balance sheet instruments following an instantaneous, parallel change in market rates based upon a static (i.e. no growth or constant) balance sheet. Conversely, the Ramp Scenario results incorporate managements 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:

+200 +100 -100Static Shock Scenario Basis Basis Basis Points Points PointsDec 31, 2020 25.0 % 11.6 % (7.9 )% Sep 30, 2020 23.4 10.9 (8.1 ) Jun 30, 2020 25.9 12.6 (8.3 ) Mar 31, 2020 22.5 10.6 (9.4 ) Dec 31, 2019 18.6 9.7 (10.9 )



+200 +100 -100Ramp Scenario Basis Basis Basis Points Points PointsDec 31, 2020 11.4 % 5.7 % (3.3 )% Sep 30, 2020 10.7 5.2 (3.5 ) Jun 30, 2020 13.0 6.7 (3.2 ) Mar 31, 2020 7.7 3.7 (3.8 ) Dec 31, 2019 9.3 4.8 (5.0 )

TABLE 9: MATURITIES AND SENSITIVITIES TO CHANGES IN INTEREST RATES

Loans repricing or maturity period As ofDecember One year or From one to Over five 31, 2020 less five years years(In Totalthousands)Commercial Fixed rate $ 372,909 $ 1,878,763 $ 804,397 $ 3,056,069 Fixed Rate ? 2,715,921 ? 2,715,921 - PPPVariable 6,180,119 3,735 123 6,183,977 rateTotal $ 6,553,028 $ 4,598,419 $ 804,520 $ 11,955,967 commercialCommercial real estateFixed rate 557,819 2,087,351 377,779 3,022,949 Variable 5,435,402 35,781 ? 5,471,183 rateTotalcommercial $ 5,993,221 $ 2,123,132 $ 377,779 $ 8,494,132 real estateHome equity Fixed rate 14,710 8,882 25 23,617 Variable 401,646 ? ? 401,646 rateTotal home $ 416,356 $ 8,882 $ 25 $ 425,263 equityResidential real estateFixed rate 31,179 11,061 384,420 426,660 Variable 60,121 319,347 453,470 832,938 rateTotalresidential $ 91,300 $ 330,408 $ 837,890 $ 1,259,598 real estatePremiumfinancereceivables -commercialFixed rate 3,967,351 87,138 ? 4,054,489 Variable ? ? ? ? rateTotalpremiumfinance $ 3,967,351 $ 87,138 $ ? $ 4,054,489 receivables-commercialPremiumfinancereceivables - lifeinsuranceFixed rate 12,424 299,640 18,931 330,995 Variable 5,526,441 ? ? 5,526,441 rateTotalpremiumfinance $ 5,538,865 $ 299,640 $ 18,931 $ 5,857,436 receivables- lifeinsuranceConsumer and otherFixed rate 8,696 5,031 1,392 15,119 Variable 17,069 ? ? 17,069 rateTotalconsumer $ 25,765 $ 5,031 $ 1,392 $ 32,188 and other Total per categoryFixed rate 4,965,088 4,377,866 1,586,944 10,929,898 Fixed rate ? 2,715,921 ? 2,715,921 - PPPVariable 17,620,798 358,863 453,593 18,433,254 rateTotalloans, net $ 22,585,886 $ 7,452,650 $ 2,040,537 $ 32,079,073 of unearnedincome VariableRate Loan Pricing byIndex:Prime $ 2,324,385 One- month 9,338,592 LIBORThree- 394,592 month LIBORTwelve- 6,112,979 month LIBOROther 262,706 Totalvariable $ 18,433,254 rate

Graph available at the following link: http://ml.globenewswire.com/Resource/Download/f719da90-6a62-4f5d-a7fb-d34801cb841a

Source: Bloomberg

As noted in the table on the previous page, the majority of the Companys portfolio is tied to LIBOR indices which, as shown in the table above, do not mirror the same changes as the Prime rate which has historically moved when the Federal Reserve raises or lowers interest rates. Specifically, the Company has $9.3 billion of variable rate loans tied to one-month LIBOR and $6.1 billion of variable rate loans tied to twelve-month LIBOR. The above chart shows:

Basis Point (bp) Change in Prime 1-month 12-month LIBOR LIBORFourth Quarter 2020 0 bp -1 bp -2 bpsThird Quarter 2020 0 -1 -19 Second Quarter 2020 0 -83 -45 First Quarter 2020 -150 -77 -100 Fourth Quarter 2019 -25 -26 -3

TABLE 10: ALLOWANCE FOR CREDIT LOSSES

Three Months Ended Years Ended Dec 31, Sep 30, Jun 30, Mar 31, Dec 31, Dec 31, Dec 31,(Dollars in 2020 2020 2020 2020 2019 2020 2019thousands)Allowance forcredit losses $ 388,971 $ 373,174 $ 253,482 $ 158,461 $ 163,273 $ 158,461 $ 154,164 at beginning ofperiodCumulativeeffectadjustment from ? ? ? 47,418 ? 47,418 ? the adoption ofASU 2016-13Provision for 1,180 25,026 135,053 52,961 7,826 214,220 53,864 credit lossesOther 155 55 42 (73 ) 30 179 (21 )adjustmentsCharge-offs: Commercial 5,184 5,270 5,686 2,153 11,222 18,293 35,880 Commercial real 6,637 1,529 7,224 570 533 15,960 5,402 estateHome equity 683 138 239 1,001 1,330 2,061 3,702 Residential 114 83 293 401 483 891 798 real estatePremium finance 4,214 4,640 3,434 3,184 3,817 15,472 12,902 receivablesConsumer and 198 103 99 128 167 528 522 otherTotal 17,030 11,763 16,975 7,437 17,552 53,205 59,206 charge-offsRecoveries: Commercial 4,168 428 112 384 1,871 5,092 2,845 Commercial real 904 175 493 263 1,404 1,835 2,516 estateHome equity 77 111 46 294 166 528 479 Residential 69 25 30 60 50 184 422 real estatePremium finance 1,445 1,720 833 1,110 1,350 5,108 3,203 receivablesConsumer and 30 20 58 41 43 149 195 otherTotal 6,693 2,479 1,572 2,152 4,884 12,896 9,660 recoveriesNet charge-offs (10,337 ) (9,284 ) (15,403 ) (5,285 ) (12,668 ) (40,309 ) (49,546 )Allowance forcredit losses $ 379,969 $ 388,971 $ 373,174 $ 253,482 $ 158,461 $ 379,969 $ 158,461 at period end Annualized net charge-offs by category as a percentage of its own respective category?saverage:Commercial 0.03 % 0.16 % 0.20 % 0.08 % 0.46 % 0.12 % 0.41 %Commercial real 0.27 0.06 0.33 0.02 (0.04 ) 0.17 0.04 estateHome equity 0.55 0.02 0.16 0.57 0.89 0.33 0.61 Residential 0.02 0.02 0.09 0.11 0.14 0.06 0.04 real estatePremium finance 0.11 0.12 0.12 0.10 0.12 0.11 0.12 receivablesConsumer and 0.78 0.49 0.25 0.56 0.41 0.52 0.29 otherTotal loans,net of unearned 0.13 % 0.12 % 0.20 % 0.08 % 0.19 % 0.13 % 0.20 %income Net charge-offsas a percentageof 876.02 % 37.10 % 11.41 % 9.98 % 161.87 % 18.82 % 91.99 %theprovisionfor creditlossesLoans at $ 32,079,073 $ 32,135,555 $ 31,402,903 $ 27,807,321 $ 26,800,290 period-endAllowance forloan losses asa percentage of 1.00 % 1.01 % 1.00 % 0.78 % 0.59 % loans at periodendAllowance forloan andunfundedlending-relatedcommitment 1.18 1.21 1.19 0.91 0.59 losses as apercentage ofloans at periodendAllowance forloan andunfundedlending-relatedcommitment 1.29 1.35 1.33 0.91 0.59 losses as apercentage ofloans at periodend, excludingPPP loans

TABLE 11: ALLOWANCE AND PROVISION FOR CREDIT LOSSES BY COMPONENT

Three Months Ended Years Ended Dec 31, Sep 30, Jun 30, Mar 31, Dec 31, Dec 31, Dec 31,(In thousands) 2020 2020 2020 2020 2019 2020 2019Provision for $ 3,597 $ 21,678 $ 112,822 $ 50,396 $ 7,704 $ 188,493 $ 53,626 loan lossesProvision forunfundedlending-related (2,413 ) 3,350 22,236 2,569 122 25,742 238 commitmentslossesProvision forheld-to-maturity (4 ) (2 ) (5 ) (4 ) ? (15 ) ? securitieslossesProvision for $ 1,180 $ 25,026 $ 135,053 $ 52,961 $ 7,826 $ 214,220 $ 53,864 credit losses Allowance for $ 319,374 $ 325,959 $ 313,510 $ 216,050 $ 156,828 loan lossesAllowance forunfundedlending-related 60,536 62,949 59,599 37,362 1,633 commitmentslossesAllowance forloan losses andunfunded 379,910 388,908 373,109 253,412 158,461 lending-relatedcommitmentslossesAllowance forheld-to-maturity 59 63 65 70 ? securitieslossesAllowance for $ 379,969 $ 388,971 $ 373,174 $ 253,482 $ 158,461 credit losses

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 Companys core, niche and consumer and purchased loan portfolios, as of December31, 2020 and September30, 2020.

As of Dec 31, 2020 As of Sep 30, 2020(Dollars in Recorded Calculated % ofits Recorded Calculated % ofitsthousands) Investment Allowance category?s Investment Allowance category?s balance balanceCommercial: Commercial,industrial and $ 9,162,327 $ 92,777 1.01 % $ 8,808,467 $ 110,045 1.25 %other, excludingPPP loansCommercial real estate:Construction and 1,344,653 77,463 5.76 1,270,235 73,565 5.79 developmentNon-construction 6,775,195 150,637 2.22 6,708,538 141,249 2.11 Home equity 395,248 11,027 2.79 412,162 11,216 2.72 Residential real 1,195,271 11,948 1.00 1,309,209 11,165 0.85 estateTotal core loan $ 18,872,694 $ 343,852 1.82 % $ 18,508,611 $ 347,240 1.88 %portfolioCommercial PPP $ 2,715,921 $ 2 0.00 % $ 3,379,013 $ 3 0.00 %loansPremium finance receivablesCommercial 4,054,489 17,267 0.43 4,060,144 17,378 0.43 insurance loansLife insurance 5,741,639 510 0.01 5,376,403 478 0.01 loansConsumer and 30,133 290 0.96 53,191 555 1.04 otherTotal niche andconsumer loan $ 12,542,182 $ 18,069 0.14 % $ 12,868,751 $ 18,414 0.14 %portfolioPurchased $ 77,719 $ 1,433 1.84 % $ 89,519 $ 2,846 3.18 %commercialPurchasedcommercial real 374,284 15,503 4.14 444,369 19,196 4.32 estatePurchased home 30,015 410 1.37 34,112 461 1.35 equityPurchasedresidential real 64,327 511 0.79 75,601 625 0.83 estatePurchased life 115,797 ? ? 112,429 ? ? insurance loansPurchasedconsumer and 2,055 132 6.42 2,163 126 5.83 otherTotal purchased $ 664,197 $ 17,989 2.71 % $ 758,193 $ 23,254 3.07 %loan portfolioTotal loans, netof unearned $ 32,079,073 $ 379,910 1.18 % $ 32,135,555 $ 388,908 1.21 %incomeTotal loans, netof unearnedincome, $ 29,363,152 $ 379,908 1.29 % $ 28,756,542 $ 388,905 1.35 %excluding PPPloans

TABLE 13: LOAN PORTFOLIO AGING

(Dollars in Dec 31, 2020 Sep 30, 2020 Jun 30, 2020 Mar 31, 2020 Dec 31, 2019thousands)Loan Balances:Commercial Nonaccrual $ 21,743 $ 42,036 $ 42,882 $ 49,916 $ 37,224 90+ daysand still 307 ? 1,374 1,241 1,855 accruing60-89 days 6,900 2,168 8,952 8,873 3,275 past due30-59 days 44,381 48,271 23,720 86,129 77,324 past dueCurrent 11,882,636 12,184,524 11,782,304 8,879,727 8,166,242 Total $ 11,955,967 $ 12,276,999 $ 11,859,232 $ 9,025,886 $ 8,285,920 commercialCommercial real estateNonaccrual $ 46,107 $ 68,815 $ 64,557 $ 62,830 $ 26,113 90+ daysand still ? ? ? 516 14,946 accruing60-89 days 5,178 8,299 26,480 10,212 31,546 past due30-59 days 32,116 53,462 75,528 75,068 97,567 past dueCurrent 8,410,731 8,292,566 8,034,180 8,036,905 7,850,104 Totalcommercial $ 8,494,132 $ 8,423,142 $ 8,200,745 8,185,531 $ 8,020,276 real estateHome equity Nonaccrual $ 6,529 $ 6,329 $ 7,261 $ 7,243 $ 7,363 90+ daysand still ? ? ? ? ? accruing60-89 days 47 70 ? 214 454 past due30-59 days 637 1,148 1,296 2,096 3,533 past dueCurrent 418,050 438,727 458,039 485,102 501,716 Total home $ 425,263 $ 446,274 $ 466,596 $ 494,655 $ 513,066 equityResidential real estateNonaccrual $ 26,071 $ 22,069 $ 19,529 $ 18,965 $ 13,797 90+ daysand still ? ? ? 605 5,771 accruing60-89 days 1,635 814 1,506 345 3,089 past due30-59 days 12,584 2,443 4,400 28,983 18,041 past dueCurrent 1,219,308 1,359,484 1,401,994 1,328,491 1,313,523 Totalresidential $ 1,259,598 $ 1,384,810 $ 1,427,429 $ 1,377,389 $ 1,354,221 real estatePremiumfinance receivablesNonaccrual $ 13,264 $ 21,080 $ 16,460 $ 21,058 $ 21,180 90+ daysand still 12,792 12,177 35,638 16,505 11,517 accruing60-89 days 27,801 38,286 42,353 12,730 12,119 past due30-59 days 49,274 80,732 61,160 70,185 51,342 past dueCurrent 9,808,794 9,396,701 9,244,965 8,566,216 8,420,471 Totalpremium $ 9,911,925 $ 9,548,976 $ 9,400,576 $ 8,686,694 $ 8,516,629 financereceivablesConsumer and otherNonaccrual $ 436 $ 422 $ 427 $ 403 $ 231 90+ daysand still 264 175 156 78 287 accruing60-89 days 24 273 4 625 40 past due30-59 days 136 493 281 207 344 past dueCurrent 31,328 53,991 47,457 35,853 109,276 Totalconsumer $ 32,188 $ 55,354 $ 48,325 $ 37,166 $ 110,178 and otherTotalloans, net of unearnedincomeNonaccrual $ 114,150 $ 160,751 $ 151,116 $ 160,415 $ 105,908 90+ daysand still 13,363 12,352 37,168 18,945 34,376 accruing60-89 days 41,585 49,910 79,295 32,999 50,523 past due30-59 days 139,128 186,549 166,385 262,668 248,151 past dueCurrent 31,770,847 31,725,993 30,968,939 27,332,294 26,361,332 Totalloans, net $ 32,079,073 $ 32,135,555 $ 31,402,903 $ 27,807,321 $ 26,800,290 of unearnedincome

TABLE 14: NON-PERFORMING ASSETS AND TROUBLED DEBT RESTRUCTURINGS ("TDRs")

Dec 31, Sep 30, Jun 30, Mar 31, Dec 31,(Dollars in 2020 2020 2020 2020^(1) 2019thousands)Loans past duegreater than90 days and still accruing^(2):Commercial $ 307 $ ? $ 1,374 $ 1,241 $ ? Commercial ? ? ? 516 ? real estateHome equity ? ? ? ? ? Residential ? ? ? 605 ? real estatePremiumfinance 12,792 12,177 35,638 16,505 11,517 receivablesConsumer and 264 175 156 78 163 otherTotal loanspast duegreater than 13,363 12,352 37,168 18,945 11,680 90 days andstill accruingNon-accrual loans:Commercial 21,743 42,036 42,882 49,916 37,224 Commercial 46,107 68,815 64,557 62,830 26,113 real estateHome equity 6,529 6,329 7,261 7,243 7,363 Residential 26,071 22,069 19,529 18,965 13,797 real estatePremiumfinance 13,264 21,080 16,460 21,058 21,180 receivablesConsumer and 436 422 427 403 231 otherTotalnon-accrual 114,150 160,751 151,116 160,415 105,908 loansTotalnon-performing loans:Commercial 22,050 42,036 44,256 51,157 37,224 Commercial 46,107 68,815 64,557 63,346 26,113 real estateHome equity 6,529 6,329 7,261 7,243 7,363 Residential 26,071 22,069 19,529 19,570 13,797 real estatePremiumfinance 26,056 33,257 52,098 37,563 32,697 receivablesConsumer and 700 597 583 481 394 otherTotalnon-performing $ 127,513 $ 173,103 $ 188,284 $ 179,360 $ 117,588 loansOther real 9,711 2,891 2,409 2,701 5,208 estate ownedOther realestate owned - 6,847 6,326 7,788 8,325 9,963 fromacquisitionsOtherrepossessed ? ? ? ? 4 assetsTotalnon-performing $ 144,071 $ 182,320 $ 198,481 $ 190,386 $ 132,763 assetsAccruing TDRsnot includedwithin $ 47,023 $ 46,410 $ 48,609 $ 47,049 $ 36,725 non-performingassetsTotalnon-performingloans bycategory as apercent of its own respectivecategory?speriod-endbalance:Commercial 0.18 % 0.34 % 0.37 % 0.57 % 0.45 %Commercial 0.54 0.82 0.79 0.77 0.33 real estateHome equity 1.54 1.42 1.56 1.46 1.44 Residential 2.07 1.59 1.37 1.42 1.02 real estatePremiumfinance 0.26 0.35 0.55 0.43 0.39 receivablesConsumer and 2.17 1.08 1.21 1.29 0.36 otherTotal loans,net of 0.40 % 0.54 % 0.60 % 0.65 % 0.44 %unearnedincomeTotalnon-performingassets as a 0.32 % 0.42 % 0.46 % 0.49 % 0.36 %percentage oftotal assetsAllowance forcredit lossesas a 332.82 % 241.93 % 246.90 % 157.97 % 149.62 %percentage ofnon-accrualloans

(1)Prior to the adoption of ASU 2016-13, acquired loans with evidence of credit quality deterioration (purchased credit deteriorated loans, or "PCD loans") were excluded from non-performing loans. PCD loans that meet the definition of non-accrual or are greater than 90 days past-due and still accruing interest are now included in non-performing loans and resulted in a $37.3 million increase in non-accrual loans upon adoption of ASU 2016-13 as of January 1, 2020. (2)As of December31, 2020, September30, 2020, June30, 2020, March31, 2020, and December31, 2019, no TDRs were past due greater than 90 days and still accruing interest.

Non-performing Loans Rollforward

Three Months Ended Years Ended Dec 31, Sep 30, Jun 30, Mar 31, Dec 31, Dec 31, Dec 31,(In thousands) 2020 2020 2020 2020 2019 2020 2019 Balance atbeginning of $ 173,103 $ 188,284 $ 179,360 $ 117,588 $ 114,284 $ 117,588 $ 113,234 periodAdditions frombecomingnon-performing 13,224 19,771 20,803 32,195 30,977 85,993 96,355 in therespectiveperiodAdditions fromthe adoption ? ? ? 37,285 ? 37,285 ? of ASU 2016-13Return toperforming (1,000 ) (6,202 ) (2,566 ) (486 ) (243 ) (10,254 ) (14,774 )statusPayments (30,146 ) (3,733 ) (11,201 ) (7,949 ) (19,380 ) (53,029 ) (45,168 )receivedTransfer toOREO and other (12,662 ) (598 ) ? (1,297 ) ? (14,557 ) (3,061 )repossessedassetsCharge-offs (7,817 ) (6,583 ) (12,884 ) (2,551 ) (11,798 ) (29,835 ) (39,591 )Net change forniche loans ^ (7,189 ) (17,836 ) 14,772 4,575 3,748 (5,678 ) 10,593 (1)Balance at end $ 127,513 $ 173,103 $ 188,284 $ 179,360 $ 117,588 $ 127,513 $ 117,588 of period

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

TDRs

Dec 31, Sep 30, Jun 30, Mar 31, Dec 31,(In 2020 2020 2020 2020 2019thousands)Accruing TDRs:Commercial $ 7,699 $ 7,863 $ 5,338 $ 6,500 $ 4,905 Commercial 10,549 10,846 19,106 18,043 9,754 real estateResidentialreal estate 28,775 27,701 24,165 22,506 22,066 and otherTotal $ 47,023 $ 46,410 $ 48,609 $ 47,049 $ 36,725 accrualNon-accrual TDRs: ^(1)Commercial $ 10,491 $ 13,132 $ 20,788 $ 17,206 $ 13,834 Commercial 6,177 13,601 8,545 14,420 7,119 real estateResidentialreal estate 4,501 5,392 5,606 4,962 6,158 and otherTotal $ 21,169 $ 32,125 $ 34,939 $ 36,588 $ 27,111 non-accrualTotal TDRs: Commercial $ 18,190 $ 20,995 $ 26,126 $ 23,706 $ 18,739 Commercial 16,726 24,447 27,651 32,463 16,873 real estateResidentialreal estate 33,276 33,093 29,771 27,468 28,224 and otherTotal TDRs $ 68,192 $ 78,535 $ 83,548 $ 83,637 $ 63,836

(1)Included in total non-performing loans.

Other Real Estate Owned

Three Months Ended Dec 31, Sep 30, Jun 30, Mar 31, Dec 31,(In thousands) 2020 2020 2020 2020 2019Balance atbeginning of $ 9,217 $ 10,197 $ 11,026 $ 15,171 $ 17,482 periodDisposals/ (3,839 ) (1,532 ) (612 ) (4,793 ) (4,860 )resolvedTransfers in atfair value, less 11,508 777 ? 954 936 costs to sellAdditions from ? ? ? ? 2,179 acquisitionFair value (328 ) (225 ) (217 ) (306 ) (566 )adjustmentsBalance at end of $ 16,558 $ 9,217 $ 10,197 $ 11,026 $ 15,171 period Period End Dec 31, Sep 30, Jun 30, Mar 31, Dec 31,Balance by 2020 2020 2020 2020 2019Property Type:Residential real $ 2,324 $ 1,839 $ 1,382 $ 1,684 $ 1,016 estateResidential realestate 1,691 ? ? ? 810 developmentCommercial real 12,543 7,378 8,815 9,342 13,345 estateTotal $ 16,558 $ 9,217 $ 10,197 $ 11,026 $ 15,171

TABLE 15: NON-INTEREST INCOME

Three Months Ended Q4 2020 compared to Q4 2020 compared to Dec 31, Sep 30, Jun 30, Mar 31, Dec 31, Q3 2020 Q4 2019(Dollars in thousands) 2020 2020 2020 2020 2019 $ Change % $ Change % Change ChangeBrokerage $ 4,740 $ 4,563 $ 4,147 $ 5,281 $ 4,859 $ 177 4 % $ (119 ) (2 )% Trust and asset 22,062 20,394 18,489 20,660 20,140 1,668 8 1,922 10 managementTotal wealth 26,802 24,957 22,636 25,941 24,999 1,845 7 1,803 7 managementMortgage banking 86,819 108,544 102,324 48,326 47,860 (21,725 ) (20 ) 38,959 81 Service charges on 11,841 11,497 10,420 11,265 10,973 344 3 868 8 deposit accountsGains (losses) oninvestment securities, 1,214 411 808 (4,359 ) 587 803 NM 627 NM netFees from covered call ? ? ? 2,292 1,243 ? NM (1,243 ) (100 ) optionsTrading (losses) (102 ) 183 (634 ) (451 ) 46 (285 ) NM (148 ) NM gains, netOperating lease 12,118 11,717 11,785 11,984 12,487 401 3 (369 ) (3 ) income, netOther: Interest rate swap 4,930 4,029 5,693 6,066 2,206 901 22 2,724 NM feesBOLI 2,846 1,218 1,950 (1,284 ) 1,377 1,628 134 1,469 NM Administrative 1,263 1,077 933 1,112 1,072 186 17 191 18 servicesForeign currencyremeasurement (losses) (208 ) (54 ) (208 ) (151 ) 261 (154 ) NM (469 ) NM gainsEarly pay-offs of 118 165 275 74 24 (47 ) (28 ) 94 NM capital leasesMiscellaneous 10,720 6,849 6,011 12,427 9,085 3,871 57 1,635 18 Total Other 19,669 13,284 14,654 18,244 14,025 6,385 48 5,644 40 Total Non-Interest $ 158,361 $ 170,593 $ 161,993 $ 113,242 $ 112,220 $ (12,232 ) (7 )% $ 46,141 41 % Income

NM - Not meaningful.

Years Ended Dec 31, Dec 31, $ %(Dollars in thousands) 2020 2019 Change ChangeBrokerage $ 18,731 $ 18,825 $ (94 ) 0 %Trust and asset 81,605 78,289 3,316 4 managementTotal wealth management 100,336 97,114 3,222 3 Mortgage banking 346,013 154,293 191,720 124 Service charges on 45,023 39,070 5,953 15 deposit accounts(Losses) gains oninvestment securities, (1,926 ) 3,525 (5,451 ) NMnetFees from covered call 2,292 3,670 (1,378 ) (38 )optionsTrading losses, net (1,004 ) (158 ) (846 ) NMOperating lease income, 47,604 47,041 563 1 netOther: Interest rate swap fees 20,718 13,072 7,646 58 BOLI 4,730 4,947 (217 ) (4 )Administrative services 4,385 4,197 188 4 Foreign currencyremeasurement (loss) (621 ) 783 (1,404 ) NMgainEarly pay-offs of leases 632 35 597 NMMiscellaneous 36,007 39,583 (3,576 ) (9 )Total Other 65,851 62,617 3,234 5 Total Non-Interest $ 604,189 $ 407,172 $ 197,017 48 %Income

NM - Not meaningful.

TABLE 16: MORTGAGE BANKING

Three Months Ended Years Ended(Dollars in Dec 31, Sep 30, Jun 30, Mar 31, Dec 31, Dec 31, Dec 31,thousands) 2020 2020 2020 2020 2019 2020 2019Originations: Retail $ 1,757,093 $ 1,590,699 $ 1,588,932 $ 773,144 $ 782,122 $ 5,709,868 $ 2,730,865 originationsCorrespondent ? ? ? ? 4,024 ? 385,729 originationsVeterans First 594,151 635,876 621,878 442,957 459,236 2,294,862 1,381,327 originationsTotaloriginations $ 2,351,244 $ 2,226,575 $ 2,210,810 $ 1,216,101 $ 1,245,382 $ 8,004,730 $ 4,497,921 for sale (A)Originations 192,107 73,711 56,954 73,727 105,911 396,499 460,734 for investmentTotal $ 2,543,351 $ 2,300,286 $ 2,267,764 $ 1,289,828 $ 1,351,293 $ 8,401,229 $ 4,958,655 originations Purchases as apercentage of 35 % 41 % 30 % 37 % 40 % 35 % 52 %originationsfor saleRefinances asa percentageof 65 59 70 63 60 65 48 originationsfor saleTotal 100 % 100 % 100 % 100 % 100 % 100 % 100 % Production Margin:Productionrevenue (B) ^ $ 70,886 $ 94,148 $ 93,433 $ 49,327 $ 34,622 $ 307,794 $ 122,047 (1)Production 3.01 % 4.23 % 4.23 % 4.06 % 2.78 % 3.85 % 2.71 %margin (B / A) Mortgage Servicing:Loans serviced $ 10,833,135 $ 10,139,878 $ 9,188,285 $ 8,314,634 $ 8,243,251 for others (C)MSRs, at fair 92,081 86,907 77,203 73,504 85,638 value (D)Percentage ofMSRs to loans 0.85 % 0.86 % 0.84 % 0.88 % 1.04 % serviced forothers (D / C)Servicing $ 9,829 $ 8,118 $ 6,908 $ 7,031 $ 6,247 $ 31,886 $ 23,156 income Components of MSR:MSR - currentperiod $ 20,343 $ 20,936 $ 20,351 $ 9,447 $ 14,532 $ 71,077 $ 44,943 capitalizationMSR -collection ofexpected cash (688 ) (590 ) (419 ) (547 ) (483 ) (2,244 ) (1,901 )flows -paydownsMSR -collection ofexpected cash (8,335 ) (7,272 ) (8,252 ) (6,476 ) (6,325 ) (30,335 ) (18,217 )flows -payoffsValuation: MSR - changesin fair value (5,223 ) (3,002 ) (7,982 ) (14,557 ) 2,329 (30,764 ) (14,778 )modelassumptionsGain (loss) onderivativecontract held ? ? 589 4,160 (483 ) 4,749 519 as an economichedge, netMSR valuationadjustment,net of gain/(loss) on $ (5,223 ) $ (3,002 ) $ (7,393 ) $ (10,397 ) $ 1,846 $ (26,015 ) $ (14,259 )derivativecontract heldas an economichedge Summary ofMortgage BankingRevenue:Production $ 70,886 $ 94,148 $ 93,433 $ 49,327 $ 34,622 $ 307,794 $ 122,047 revenue ^(1)Servicing 9,829 8,118 6,908 7,031 6,247 31,886 23,156 incomeMSR activity 6,097 10,072 4,287 (7,973 ) 9,570 12,483 10,566 Other 7 (3,794 ) (2,304 ) (59 ) (2,579 ) (6,150 ) (1,476 )Total mortgagebanking $ 86,819 $ 108,544 $ 102,324 $ 48,326 $ 47,860 $ 346,013 $ 154,293 revenue

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

TABLE 17: NON-INTEREST EXPENSE

Three Months Ended Q4 2020 compared to Q4 2020 compared to Dec 31, Sep 30, Jun 30, Mar 31, Dec 31, Q3 2020 Q4 2019(Dollars in 2020 2020 2020 2020 2019 $ % $ % thousands) Change Change Change ChangeSalaries andemployee benefits:Salaries $ 93,535 $ 89,849 $ 87,105 $ 81,286 $ 82,888 $ 3,686 4 % $ 10,647 13 %Commissions andincentive 52,383 48,475 46,151 31,575 40,226 3,908 8 12,157 30 compensationBenefits 25,198 25,718 20,900 23,901 22,827 (520 ) (2 ) 2,371 10 Total salariesand employee 171,116 164,042 154,156 136,762 145,941 7,074 4 25,175 17 benefitsEquipment 20,565 17,251 15,846 14,834 14,485 3,314 19 6,080 42 Operating leaseequipment 9,938 9,425 9,292 9,260 9,766 513 5 172 2 depreciationOccupancy, net 19,687 15,830 16,893 17,547 17,132 3,857 24 2,555 15 Data processing 5,728 5,689 10,406 8,373 7,569 39 1 (1,841 ) (24 )Advertising and 9,850 7,880 7,704 10,862 12,517 1,970 25 (2,667 ) (21 )marketingProfessional 6,530 6,488 7,687 6,721 7,650 42 1 (1,120 ) (15 )feesAmortization ofother 2,634 2,701 2,820 2,863 3,017 (67 ) (2 ) (383 ) (13 )intangibleassetsFDIC insurance 7,016 6,772 7,081 4,135 1,348 244 4 5,668 NMOREO expense, (114 ) (168 ) 237 (876 ) 536 54 (32 ) (650 ) NMnetOther: Commissions -3rd party 764 778 707 865 717 (14 ) (2 ) 47 7 brokersPostage 1,849 1,529 1,591 1,949 2,220 320 21 (371 ) (17 )Miscellaneous 26,304 26,002 24,948 21,346 26,693 302 1 (389 ) (1 )Total other 28,917 28,309 27,246 24,160 29,630 608 2 (713 ) (2 )TotalNon-Interest $ 281,867 $ 264,219 $ 259,368 $ 234,641 $ 249,591 $ 17,648 7 % $ 32,276 13 %Expense

NM - Not meaningful.

Years Ended Dec 31, Dec 31, $ %(Dollars in thousands) 2020 2019 Change ChangeSalaries and employee benefits:Salaries $ 351,775 $ 310,352 $ 41,423 13 %Commissions and 178,584 148,600 29,984 20 incentive compensationBenefits 95,717 87,468 8,249 9 Total salaries and 626,076 546,420 79,656 15 employee benefitsEquipment 68,496 52,328 16,168 31 Operating lease 37,915 35,760 2,155 6 equipment depreciationOccupancy, net 69,957 64,289 5,668 9 Data processing 30,196 27,820 2,376 9 Advertising and 36,296 48,595 (12,299 ) (25 )marketingProfessional fees 27,426 27,471 (45 ) 0 Amortization of other 11,018 11,844 (826 ) (7 )intangible assetsFDIC insurance 25,004 9,199 15,805 NMOREO expense, net (921 ) 3,628 (4,549 ) NMOther: Commissions - 3rd 3,114 2,918 196 7 party brokersPostage 6,918 9,597 (2,679 ) (28 )Miscellaneous 98,600 88,257 10,343 12 Total other 108,632 100,772 7,860 8 Total Non-Interest $ 1,040,095 $ 928,126 $ 111,969 12 %Expense

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 Companys 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 Companys financial information a more meaningful view of the performance of the Company's interest-earning assets and interest-bearing liabilities and of the Companys 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 Companys 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 Companys equity. The Company references the return on average tangible common equity as a measurement of profitability. Management considers pre-tax income, excluding provision for credit losses, as a useful measurement of the Company's core net income.

Three Months Ended Years Ended Dec 31, Sep 30, Jun 30, Mar 31, Dec 31, Dec 31, Dec 31,(Dollars and shares 2020 2020 2020 2020 2019 2020 2019in thousands)Reconciliation of Non-GAAP Net Interest Margin and Efficiency Ratio: (A) Interest Income $ 307,981 $ 311,156 $ 329,816 $ 344,067 $ 349,731 $ 1,293,020 $ 1,385,142 (GAAP)Taxable-equivalent adjustment:- Loans 324 481 576 860 892 2,241 3,935 - Liquidity 530 546 538 551 573 2,165 2,280 Management Assets- Other Earning 3 1 3 2 1 9 9 Assets(B) Interest Income $ 308,838 $ 312,184 $ 330,933 $ 345,480 $ 351,197 $ 1,297,435 $ 1,391,366 (non-GAAP)(C) Interest Expense $ 48,584 $ 55,220 $ 66,685 $ 82,624 $ 87,852 $ 253,113 $ 330,223 (GAAP)(D) Net InterestIncome (GAAP) (A $ 259,397 $ 255,936 $ 263,131 $ 261,443 $ 261,879 $ 1,039,907 $ 1,054,919 minus C)(E) Net InterestIncome (non-GAAP) (B $ 260,254 $ 256,964 $ 264,248 $ 262,856 $ 263,345 $ 1,044,322 $ 1,061,143 minus C)Net interest margin 2.53 % 2.56 % 2.73 % 3.12 % 3.17 % 2.72 % 3.45 %(GAAP)Net interest margin,fully 2.54 % 2.57 % 2.74 % 3.14 % 3.19 % 2.73 % 3.47 %taxable-equivalent(non-GAAP)(F) Non-interest $ 158,361 $ 170,593 $ 161,993 $ 113,242 $ 112,220 $ 604,189 $ 407,172 income(G) Gains (losses)on investment 1,214 411 808 (4,359 ) 587 (1,926 ) 3,525 securities, net(H) Non-interest 281,867 264,219 259,368 234,641 249,591 1,040,095 928,126 expenseEfficiency ratio (H/ 67.67 % 62.01 % 61.13 % 61.90 % 66.82 % 63.19 % 63.63 %(D+F-G))Efficiency ratio(non-GAAP) (H/ 67.53 % 61.86 % 60.97 % 61.67 % 66.56 % 63.02 % 63.36 %(E+F-G)) Reconciliation of Non-GAAP Tangible Common Equity Ratio: Total shareholders? $ 4,115,995 $ 4,074,089 $ 3,990,218 $ 3,700,393 $ 3,691,250 equity (GAAP)Less:Non-convertible (412,500 ) (412,500 ) (412,500 ) (125,000 ) (125,000 ) preferred stock(GAAP)Less: Intangible (681,747 ) (683,314 ) (685,581 ) (687,626 ) (692,277 ) assets (GAAP)(I) Total tangiblecommon shareholders? $ 3,021,748 $ 2,978,275 $ 2,892,137 $ 2,887,767 $ 2,873,973 equity (non-GAAP)(J) Total assets $ 45,080,768 $ 43,731,718 $ 43,540,017 $ 38,799,847 $ 36,620,583 (GAAP)Less: Intangible (681,747 ) (683,314 ) (685,581 ) (687,626 ) (692,277 ) assets (GAAP)(K) Total tangible $ 44,399,021 $ 43,048,404 $ 42,854,436 $ 38,112,221 $ 35,928,306 assets (non-GAAP)Common equity toassets ratio (GAAP) 8.2 % 8.4 % 8.2 % 9.2 % 9.7 % (L/J)Tangible commonequity ratio 6.8 % 6.9 % 6.7 % 7.6 % 8.0 % (non-GAAP) (I/K)



Three Months Ended Years Ended Dec 31, Sep 30, Jun 30, Mar 31, Dec 31, Dec 31, Dec 31,(Dollars andshares in 2020 2020 2020 2020 2019 2020 2019thousands)Reconciliation of Non-GAAP Tangible Book Value per Common Share: Totalshareholders? $ 4,115,995 $ 4,074,089 $ 3,990,218 $ 3,700,393 $ 3,691,250 equityLess:Preferred (412,500 ) (412,500 ) (412,500 ) (125,000 ) (125,000 ) stock(L) Total $ 3,703,495 $ 3,661,589 $ 3,577,718 $ 3,575,393 $ 3,566,250 common equity(M) Actualcommon shares 56,770 57,602 57,574 57,545 57,822 outstandingBook valueper common $ 65.24 $ 63.57 $ 62.14 $ 62.13 $ 61.68 share (L/M)Tangible bookvalue percommon share $ 53.23 $ 51.70 $ 50.23 $ 50.18 $ 49.70 (non-GAAP) (I/M) Reconciliation of Non-GAAP Return on Average Tangible Common Equity: (N) Netincome $ 94,213 $ 97,029 $ 19,609 $ 60,762 $ 83,914 $ 271,613 $ 347,497 applicable tocommon sharesAdd:Intangible 2,634 2,701 2,820 2,863 3,017 11,018 11,844 assetamortizationLess: Taxeffect ofintangible (656 ) (589 ) (832 ) (799 ) (793 ) (2,732 ) (3,068 )assetamortizationAfter-taxintangible 1,978 2,112 1,988 2,064 2,224 8,286 8,776 assetamortization(O) Tangiblenet incomeapplicable to $ 96,191 $ 99,141 $ 21,597 $ 62,826 $ 86,138 $ 279,899 $ 356,273 common shares(non-GAAP)Total averageshareholders' $ 4,050,286 $ 4,034,902 $ 3,908,846 $ 3,710,169 $ 3,622,184 $ 3,926,688 $ 3,461,535 equityLess: Averagepreferred (412,500 ) (412,500 ) (273,489 ) (125,000 ) (125,000 ) (306,455 ) (125,000 )stock(P) Totalaveragecommon $ 3,637,786 $ 3,622,402 $ 3,635,357 $ 3,585,169 $ 3,497,184 $ 3,620,233 $ 3,336,535 shareholders'equityLess: Averageintangible (682,290 ) (684,717 ) (686,526 ) (690,777 ) (689,286 ) (686,064 ) (641,802 )assets(Q) Totalaveragetangiblecommon $ 2,955,496 $ 2,937,685 $ 2,948,831 $ 2,894,392 $ 2,807,898 $ 2,934,169 $ 2,694,733 shareholders?equity(non-GAAP)Return onaveragecommon 10.30 % 10.66 % 2.17 % 6.82 % 9.52 % 7.50 % 10.41 %equity,annualized (N/P)Return onaveragetangiblecommon 12.95 % 13.43 % 2.95 % 8.73 % 12.17 % 9.54 % 13.22 %equity,annualized(non-GAAP) (O/Q) Reconciliation of Non-GAAP Pre-Tax, Pre-Provision Income: Income before $ 134,711 $ 137,284 $ 30,703 $ 87,083 $ 116,682 $ 389,781 $ 480,101 taxesAdd:Provision for 1,180 25,026 135,053 52,961 7,826 214,220 53,864 credit lossesPre-taxincome,excluding $ 135,891 $ 162,310 $ 165,756 $ 140,044 $ 124,508 $ 604,001 $ 533,965 provision forcredit losses(non-GAAP)



Reconciliation ofNon-GAAP Pre-Tax, Years EndedPre-ProvisionIncome: Dec 31, Dec 31, Dec 31, Dec 31, Dec 31, Dec 31, Dec 31, Dec 31, Dec 31, 2018 2017 2016 2015 2014 2013 2012 2011 2010Income before taxes $ 460,133 $ 389,997 $ 331,854 $ 251,765 $ 246,431 $ 224,440 $ 180,132 $ 128,033 $ 100,807 Add: Provision for 34,832 29,768 34,084 32,942 20,537 46,033 76,436 102,638 124,664 credit lossesPre-tax income,excluding provision $ 494,965 $ 419,765 $ 365,938 $ 284,707 $ 266,968 $ 270,473 $ 256,568 $ 230,671 $ 225,471 for credit losses(non-GAAP)

WINTRUST SUBSIDIARIES AND LOCATIONS

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

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

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

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

FORWARD-LOOKING STATEMENTS

This document contains forward-looking statements within the meaning of federal securities laws. Forward-looking information can be identified through the use of words such as intend, plan, project, expect, anticipate, believe, estimate, contemplate, possible, will, may, should, would and could. Forward-looking statements and information are not historical facts, are premised on many factors and assumptions, and represent only managements 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, such as the impacts of the COVID-19 pandemic, and which may include, but are not limited to, those listed below and the Risk Factors discussed under Item1A of the Companys 2019 Annual Report on Form 10-K and in any of the Companys 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 Companys future financial performance, the performance of its loan portfolio, the expected amount of future credit reserves and charge-offs, delinquency trends, growth plans, regulatory developments, securities that the Company may offer from time to time, and managements long-term performance goals, as well as statements relating to the anticipated effects on financial condition and results of operations from expected developments or events, the Companys business and growth strategies, including future acquisitions of banks, specialty finance or wealth management businesses, internal growth and plans to form additional de novo banks or branch offices. Actual results could differ materially from those addressed in the forward-looking statements as a result of numerous factors, including the following:

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

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

CONFERENCE CALL, WEBCAST AND REPLAY

The Company will hold a conference call on Thursday, January 21, 2021 at 10:00 a.m. (Central Time) regarding fourth quarter and full year 2020 results. Individuals interested in listening should call (877)363-5049 and enter Conference ID #9780585. A simultaneous audio-only webcast and replay of the conference call as well as an accompanying slide presentation may be accessed via the Companys website at https://www.wintrust.com, Investor Relations, Investor News and Events, Presentations& Conference Calls. The text of the fourth quarter and full year 2020 earnings press release will be available on the home page of the Companys 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:Edward J. Wehmer, Founder& Chief Executive OfficerDavid A. Dykstra, Vice Chairman &Chief Operating Officer(847) 939-9000 Web site address: www.wintrust.com