Upgrade to SI Premium - Free Trial

Wintrust Financial Corporation Reports Record Second Quarter 2018 Net Income, an Increase of 38% Over Prior Year, and Year-to-Date Net Income of $171.6 million, an Increase of 39% Over Prior Year

July 17, 2018 4:37 PM

ROSEMONT, Ill., July 17, 2018 (GLOBE NEWSWIRE) -- Wintrust Financial Corporation (“Wintrust” or “the Company”) (Nasdaq: WTFC) announced net income of $89.6 million or $1.53 per diluted common share for the second quarter of 2018 compared to net income of $82.0 million or $1.40 per diluted common share for the first quarter of 2018 and $64.9 million or $1.11 per diluted common share for the second quarter of 2017. The Company recorded net income of $171.6 million or $2.93 per diluted common share for the first six months of 2018 compared to net income of $123.3 million or $2.11 per diluted common share for the same period of 2017.

Highlights of the Second Quarter of 2018 *:

* See "Supplemental Financial Measures/Ratios" on pages 11-12 for more information on non-GAAP measures.

Edward J. Wehmer, President and Chief Executive Officer, commented, "Wintrust reported net income of $89.6 million for the second quarter of 2018, the tenth consecutive quarter of record net income, and net income of $171.6 million for the first six months of 2018. These results were driven by strong loan and deposit growth and an increased net interest margin as we continue to benefit from rising interest rates. The second quarter of 2018 was also characterized by good credit quality metrics and increased mortgage banking revenue." Mr. Wehmer continued, "We experienced strong loan growth within the commercial portfolio and premium finance receivables portfolios during the period. The commercial real estate portfolio remained relatively flat during the second quarter as elevated payoffs and paydowns offset new loan growth within the portfolio. We continue to take a measured approach in evaluating new commercial real estate loan opportunities due to supply and demand issues in the market place, pricing competition and easing of underwriting standards by some competitors. Overall, we grew our loan portfolio by $548 million during the second quarter of 2018. Our loan pipelines improved to the highest levels since the second quarter of 2017. The increased loan volume, continued improvement in net interest margin from rising interest rates and an additional day in the second quarter compared to the first quarter helped net interest income increase by $13.1 million in the second quarter of 2018. Deposit growth was strong in the second quarter of 2018 as deposits increased $1.1 billion and exceeded $24 billion as of the end of the quarter. Our deposit growth was primarily the result of growth in money market accounts and retail certificate of deposit accounts as active marketing campaigns began to take effect. Five branches added during the second quarter of 2018 contributed $134 million of retail deposit balances to this growth."

Commenting on credit quality, Mr. Wehmer noted, "During the second quarter of 2018, the Company continued its practice of addressing and resolving non-performing credits in a timely fashion. Net charge-offs totaled $1.1 million in the current quarter, decreasing $5.6 million from the first quarter of 2018. Additionally, net charge-offs as a percentage of average total loans decreased to two basis points from 13 basis points in the first quarter. Total non-performing assets decreased $7.5 million during the second quarter of 2018 resulting in non-performing assets as a percentage of total assets dropping from 0.44% to 0.40% during the period. Total non-performing loans decreased $6.4 million in the second quarter of 2018 and now total $83.3 million, or 0.37% of total loans. As a percentage of non-performing loans, the allowance for loan losses increased to 172% at the end of the second quarter of 2018 from 156% at the end of the first quarter of 2018. We believe that the Company's reserves remain appropriate."

Mr. Wehmer further commented, "Mortgage banking revenue in the second quarter of 2018 totaled $39.8 million, an increase of $8.9 million compared to the first quarter of 2018. Mortgage loan origination volumes in the second quarter of 2018 increased to $1.1 billion from $779 million in the first quarter of 2018 as a result of higher purchase originations during the traditional spring purchase market and a full quarter's impact from the Veterans First acquisition. The increase in mortgage banking revenue from higher originations was tempered by lower production margins and smaller positive fair market value adjustment to mortgage servicing rights as interest rates increased less during the second quarter of 2018 when compared to the first quarter of 2018. Home purchases activity represented 80% of the volume for the second quarter of 2018 compared to 73% in the first quarter of 2018. Our mortgage pipeline remains relatively strong. With respect to production margin, we anticipate that it will decline slightly in the third quarter with stabilization in future periods. We continue to focus on efficiencies in our delivery channels and operating costs in our mortgage banking area."

Turning to the future, Mr. Wehmer stated, "Our growth engine continued its momentum into the second quarter of 2018 and we expect that to continue for the second half of the year. Loan growth at the end of the second quarter of 2018 should add to this momentum as period-end loan balances exceeded the second quarter average balance by $327 million. Wintrust continues to take a steady and measured approach to achieving our main objectives of growing franchise value, increasing profitability, leveraging our expense infrastructure and continuing to increase shareholder value. As our growth engine continues its momentum, we expect continued organic growth while still focusing on expense control. We remain well-positioned for a rising interest rate environment in the future, which, coupled with this loan growth, should continue to grow net interest income. Evaluating strategic acquisitions and organic branch growth will also be a part of our overall growth strategy with the goal of becoming Chicago’s bank and Wisconsin’s bank. To that end, the Company opened five new branches in the second quarter of 2018 and will continue to evaluate future locations in our market area including four expected branch openings in the third quarter of 2018. Our opportunities for both internal growth and external growth remain consistently strong."

The graphs below illustrate certain highlights of the second quarter of 2018.

http://resource.globenewswire.com/Resource/Download/67e63205-bcc4-4010-9f95-adb4dbc564db

Wintrust’s key operating measures and growth rates for the second quarter of 2018, as compared to the sequential and linked quarters, are shown in the table below:

% or(4)basis point (bp) change from1st Quarter2018 % orbasis point (bp)change from2nd Quarter2017
Three Months Ended
(Dollars in thousands) June 30, 2018 March 31, 2018 June 30, 2017
Net income $89,580 $81,981 $64,897 9 % 38 %
Net income per common share – diluted $1.53 $1.40 $1.11 9 % 38 %
Net revenue (1) $333,403 $310,761 $294,381 7 % 13 %
Net interest income 238,170 225,082 204,409 6 % 17 %
Net interest margin 3.61% 3.54% 3.41% 7 bp 20 bp
Net interest margin - fully taxable equivalent (non-GAAP) (2) 3.63% 3.56% 3.43% 7 bp 20 bp
Net overhead ratio (3) 1.57% 1.58% 1.44% (1)bp 13 bp
Return on average assets 1.26% 1.20% 1.00% 6 bp 26 bp
Return on average common equity 11.94% 11.29% 9.55% 65 bp 239 bp
Return on average tangible common equity (non-GAAP) (2) 14.72% 14.02% 12.02% 70 bp 270 bp
At end of period
Total assets $29,464,588 $28,456,772 $26,929,265 14 % 9 %
Total loans, excluding covered loans 22,610,560 22,062,134 20,743,332 10 % 9 %
Total deposits 24,365,479 23,279,327 22,605,692 19 % 8 %
Total shareholders’ equity 3,106,871 3,031,250 2,839,458 10 % 9 %
  1. Net revenue is net interest income plus non-interest income.
  2. See "Supplemental Financial Measures/Ratios" for additional information on this performance measure/ratio.
  3. The net overhead ratio is calculated by netting total non-interest expense and total non-interest income, annualizing this amount, and dividing by that period's average total assets. A lower ratio indicates a higher degree of efficiency.
  4. Period-end balance sheet percentage changes are annualized.

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

WINTRUST FINANCIAL CORPORATIONSelected Financial Highlights

Three Months Ended Six Months Ended
(Dollars in thousands, except per share data) June 30, 2018 March 31, 2018 June 30, 2017 June 30, 2018 June 30, 2017
Selected Financial Condition Data (at end of period):
Total assets $29,464,588 $28,456,772 $26,929,265
Total loans, excluding covered loans 22,610,560 22,062,134 20,743,332
Total deposits 24,365,479 23,279,327 22,605,692
Junior subordinated debentures 253,566 253,566 253,566
Total shareholders’ equity 3,106,871 3,031,250 2,839,458
Selected Statements of Income Data:
Net interest income $238,170 $225,082 $204,409 $463,252 $396,989
Net revenue (1) 333,403 310,761 294,381 644,164 555,726
Net income 89,580 81,981 64,897 171,561 123,275
Net income per common share – Basic $1.55 $1.42 $1.15 $2.98 $2.20
Net income per common share – Diluted $1.53 $1.40 $1.11 $2.93 $2.11
Selected Financial Ratios and Other Data:
Performance Ratios:
Net interest margin 3.61% 3.54% 3.41% 3.58% 3.38%
Net interest margin - fully taxable equivalent (non-GAAP) (2) 3.63% 3.56% 3.43% 3.60% 3.41%
Non-interest income to average assets 1.34% 1.25% 1.39% 1.29% 1.25%
Non-interest expense to average assets 2.90% 2.83% 2.83% 2.87% 2.77%
Net overhead ratio (3) 1.57% 1.58% 1.44% 1.58% 1.52%
Return on average assets 1.26% 1.20% 1.00% 1.23% 0.97%
Return on average common equity 11.94% 11.29% 9.55% 11.62% 9.24%
Return on average tangible common equity (non-GAAP) (2) 14.72% 14.02% 12.02% 14.38% 11.74%
Average total assets $28,567,579 $27,809,597 $26,050,949 $28,190,683 $25,632,004
Average total shareholders’ equity 3,064,154 2,995,592 2,800,905 3,030,062 2,771,768
Average loans to average deposits ratio (excluding covered loans) 95.5% 95.2% 94.1% 95.3% 93.3%
Period-end loans to deposits ratio (excluding covered loans) 92.8% 94.8% 91.8%
Common Share Data at end of period:
Market price per common share $87.05 $86.05 $76.44
Book value per common share (2) $52.94 $51.66 $48.73
Tangible common book value per share (2) $43.50 $42.17 $39.40
Common shares outstanding 56,329,276 56,256,498 55,699,927
Other Data at end of period:(6)
Leverage Ratio (4) 9.4% 9.3% 9.2%
Tier 1 capital to risk-weighted assets (4) 10.0% 10.0% 9.8%
Common equity Tier 1 capital to risk-weighted assets (4) 9.5% 9.5% 9.3%
Total capital to risk-weighted assets (4) 12.0% 12.0% 12.0%
Allowance for credit losses (5) $144,645 $140,746 $131,296
Non-performing loans 83,282 89,690 69,050
Allowance for credit losses to total loans (5) 0.64% 0.64% 0.63%
Non-performing loans to total loans 0.37% 0.41% 0.33%
Number of:
Bank subsidiaries 15 15 15
Banking offices 162 157 153
  1. Net revenue includes net interest income and non-interest income.
  2. See “Supplemental Financial Measures/Ratios” for additional information on this performance measure/ratio.
  3. The net overhead ratio is calculated by netting total non-interest expense and total non-interest income, annualizing this amount, and dividing by that period’s total average assets. A lower ratio indicates a higher degree of efficiency.
  4. Capital ratios for current quarter-end are estimated.
  5. The allowance for credit losses includes both the allowance for loan losses and the allowance for unfunded lending-related commitments, but excludes the allowance for covered loan losses.
  6. Asset quality ratios exclude covered loans.

WINTRUST FINANCIAL CORPORATION AND SUBSIDIARIESCONSOLIDATED STATEMENTS OF CONDITION

(Unaudited) (Unaudited)
(In thousands) June 30, 2018 December 31, 2017 June 30, 2017
Assets
Cash and due from banks $304,580 $277,534 $296,105
Federal funds sold and securities purchased under resale agreements 62 57 56
Interest bearing deposits with banks 1,221,407 1,063,242 1,011,635
Available-for-sale securities, at fair value 1,940,787 1,803,666 1,649,636
Held-to-maturity securities, at amortized cost 890,834 826,449 793,376
Trading account securities 862 995 1,987
Equity securities with readily determinable fair value 37,839 — —
Federal Home Loan Bank and Federal Reserve Bank stock 96,699 89,989 80,812
Brokerage customer receivables 16,649 26,431 23,281
Mortgage loans held-for-sale 455,712 313,592 382,837
Loans, net of unearned income, excluding covered loans 22,610,560 21,640,797 20,743,332
Covered loans — — 50,119
Total loans 22,610,560 21,640,797 20,793,451
Allowance for loan losses (143,402) (137,905) (129,591)
Allowance for covered loan losses — — (1,074)
Net loans 22,467,158 21,502,892 20,662,786
Premises and equipment, net 639,345 621,895 605,211
Lease investments, net 194,160 212,335 191,248
Accrued interest receivable and other assets 666,673 567,374 577,359
Trade date securities receivable 450 90,014 133,130
Goodwill 509,957 501,884 500,260
Other intangible assets 21,414 17,621 19,546
Total assets $29,464,588 $27,915,970 $26,929,265
Liabilities and Shareholders’ Equity
Deposits:
Non-interest bearing $6,520,724 $6,792,497 $6,294,052
Interest bearing 17,844,755 16,390,850 16,311,640
Total deposits 24,365,479 23,183,347 22,605,692
Federal Home Loan Bank advances 667,000 559,663 318,270
Other borrowings 255,701 266,123 277,710
Subordinated notes 139,148 139,088 139,029
Junior subordinated debentures 253,566 253,566 253,566
Trade date securities payable — — 5,151
Accrued interest payable and other liabilities 676,823 537,244 490,389
Total liabilities 26,357,717 24,939,031 24,089,807
Shareholders’ Equity:
Preferred stock 125,000 125,000 125,000
Common stock 56,437 56,068 55,802
Surplus 1,547,511 1,529,035 1,511,080
Treasury stock (5,355) (4,986) (4,884)
Retained earnings 1,464,494 1,313,657 1,198,997
Accumulated other comprehensive loss (81,216) (41,835) (46,537)
Total shareholders’ equity 3,106,871 2,976,939 2,839,458
Total liabilities and shareholders’ equity $29,464,588 $27,915,970 $26,929,265

WINTRUST FINANCIAL CORPORATION AND SUBSIDIARIESCONSOLIDATED STATEMENTS OF INCOME (UNAUDITED)

Three Months Ended Six Months Ended
(In thousands, except per share data)June 30, 2018 March 31, 2018 June 30, 2017 June 30, 2018 June 30, 2017
Interest income
Interest and fees on loans255,063 234,994 209,289 490,057 406,205
Mortgage loans held-for-sale4,226 2,818 3,420 7,044 5,818
Interest bearing deposits with banks3,243 2,796 1,634 6,039 3,257
Federal funds sold and securities purchased under resale agreements1 — 1 1 2
Investment securities19,888 19,128 15,524 39,016 29,097
Trading account securities4 14 4 18 15
Federal Home Loan Bank and Federal Reserve Bank stock1,455 1,298 1,153 2,753 2,223
Brokerage customer receivables167 157 156 324 323
Total interest income284,047 261,205 231,181 545,252 446,940
Interest expense
Interest on deposits35,293 26,549 18,471 61,842 34,741
Interest on Federal Home Loan Bank advances4,263 3,639 2,933 7,902 4,523
Interest on other borrowings1,698 1,699 1,149 3,397 2,288
Interest on subordinated notes1,787 1,773 1,786 3,560 3,558
Interest on junior subordinated debentures2,836 2,463 2,433 5,299 4,841
Total interest expense45,877 36,123 26,772 82,000 49,951
Net interest income238,170 225,082 204,409 463,252 396,989
Provision for credit losses5,043 8,346 8,891 13,389 14,100
Net interest income after provision for credit losses233,127 216,736 195,518 449,863 382,889
Non-interest income
Wealth management22,617 22,986 19,905 45,603 40,053
Mortgage banking39,834 30,960 35,939 70,794 57,877
Service charges on deposit accounts9,151 8,857 8,696 18,008 16,961
Gains (losses) on investment securities, net12 (351) 47 (339) (8)
Fees from covered call options669 1,597 890 2,266 1,649
Trading gains (losses), net124 103 (420) 227 (740)
Operating lease income, net8,746 9,691 6,805 18,437 12,587
Other14,080 11,836 18,110 25,916 30,358
Total non-interest income95,233 85,679 89,972 180,912 158,737
Non-interest expense
Salaries and employee benefits121,675 112,436 106,502 234,111 205,818
Equipment10,527 10,072 9,909 20,599 18,911
Operating lease equipment depreciation6,940 6,533 5,662 13,473 10,298
Occupancy, net13,663 13,767 12,586 27,430 25,687
Data processing8,752 8,493 7,804 17,245 15,729
Advertising and marketing11,782 8,824 8,726 20,606 13,876
Professional fees6,484 6,649 7,510 13,133 12,170
Amortization of other intangible assets997 1,004 1,141 2,001 2,305
FDIC insurance4,598 4,362 3,874 8,960 8,030
OREO expense, net980 2,926 739 3,906 2,404
Other20,371 19,283 19,091 39,654 36,434
Total non-interest expense206,769 194,349 183,544 401,118 351,662
Income before taxes121,591 108,066 101,946 229,657 189,964
Income tax expense32,011 26,085 37,049 58,096 66,689
Net income$89,580 $81,981 $64,897 $171,561 $123,275
Preferred stock dividends2,050 2,050 2,050 4,100 5,678
Net income applicable to common shares$87,530 $79,931 $62,847 $167,461 $117,597
Net income per common share - Basic$1.55 $1.42 $1.15 $2.98 $2.20
Net income per common share - Diluted$1.53 $1.40 $1.11 $2.93 $2.11
Cash dividends declared per common share$0.19 $0.19 $0.14 $0.38 $0.28
Weighted average common shares outstanding56,299 56,137 54,775 56,218 53,528
Dilutive potential common shares928 888 1,812 909 2,981
Average common shares and dilutive common shares57,227 57,025 56,587 57,127 56,509

EARNINGS PER SHARE

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

Three Months Ended Six Months Ended
(In thousands, except per share data) June 30, 2018 March 31, 2018 June 30, 2017 June 30, 2018 June 30, 2017
Net income $89,580 $81,981 $64,897 $171,561 $123,275
Less: Preferred stock dividends 2,050 2,050 2,050 4,100 5,678
Net income applicable to common shares—Basic(A) 87,530 79,931 62,847 167,461 117,597
Add: Dividends on convertible preferred stock, if dilutive — — — — 1,578
Net income applicable to common shares—Diluted(B) 87,530 79,931 62,847 167,461 119,175
Weighted average common shares outstanding(C) 56,299 56,137 54,775 56,218 53,528
Effect of dilutive potential common shares:
Common stock equivalents 928 888 927 909 994
Convertible preferred stock, if dilutive — — 885 — 1,987
Weighted average common shares and effect of dilutive potential common shares(D) 57,227 57,025 56,587 57,127 56,509
Net income per common share:
Basic(A/C) $1.55 $1.42 $1.15 $2.98 $2.20
Diluted(B/D) $1.53 $1.40 $1.11 $2.93 $2.11

Potentially dilutive common shares can result from stock options, restricted stock unit awards, stock warrants, the Company’s convertible preferred stock and shares to be issued under the Employee Stock Purchase Plan and the Directors Deferred Fee and Stock Plan, being treated as if they had been either exercised or issued, computed by application of the treasury stock method. While potentially dilutive common shares are typically included in the computation of diluted earnings per share, potentially dilutive common shares are excluded from this computation in periods in which the effect would reduce the loss per share or increase the income per share. For diluted earnings per share, net income applicable to common shares can be affected by the conversion of the Company’s convertible preferred stock. Where the effect of this conversion would reduce the loss per share or increase the income per share for a period, net income applicable to common shares is not adjusted by the associated preferred dividends. On April 25, 2017, 2,073 shares of the Series C Preferred Stock were converted at the option of the respective holder into 51,244 shares of the Company's common stock, pursuant to the terms of the Series C Preferred Stock. On April 27, 2017, the Company caused a mandatory conversion of its outstanding 124,184 shares of Series C Preferred Stock into 3,069,828 shares of the Company's common stock at a conversion rate of 24.72 shares of common stock per share of Series C Preferred Stock. Cash was paid in lieu of fractional shares for an amount considered insignificant.

SUPPLEMENTAL FINANCIAL MEASURES/RATIOS

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

Management reviews yields on certain asset categories and the net interest margin of the Company and its banking subsidiaries on a fully taxable-equivalent (“FTE”) 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 FTE basis is also used in the calculation of the Company’s efficiency ratio. The efficiency ratio, which is calculated by dividing non-interest expense by total taxable-equivalent net revenue (less securities gains or losses), measures how much it costs to produce one dollar of revenue. Securities gains or losses are excluded from this calculation to better match revenue from daily operations to operational expenses. Management considers the tangible common equity ratio and tangible book value per common share as useful measurements of the Company’s equity. The Company references the return on average tangible common equity as a measurement of profitability.

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

Three Months Ended Six Months Ended
June 30, March 31, December 31, September 30, June 30, June 30, June 30,
(Dollars and shares in thousands)2018 2018 2017 2017 2017 2018 2017
Calculation of Net Interest Margin and Efficiency Ratio
(A) Interest Income (GAAP)$284,047 $261,205 $251,840 $247,688 $231,181 $545,252 $446,940
Taxable-equivalent adjustment:
- Loans812 670 1,106 1,033 831 1,482 1,621
- Liquidity Management Assets566 531 1,019 921 866 1,097 1,773
- Other Earning Assets1 3 2 5 2 4 7
(B) Interest Income - FTE$285,426 $262,409 $253,967 $249,647 $232,880 $547,835 $450,341
(C) Interest Expense (GAAP)45,877 36,123 32,741 31,700 26,772 82,000 49,951
(D) Net Interest Income - FTE (B minus C)$239,549 $226,286 $221,226 $217,947 $206,108 $465,835 $400,390
(E) Net Interest Income (GAAP) (A minus C)$238,170 $225,082 $219,099 $215,988 $204,409 $463,252 $396,989
Net interest margin (GAAP-derived)3.61% 3.54% 3.45% 3.43% 3.41% 3.58% 3.38%
Net interest margin - FTE3.63% 3.56% 3.49% 3.46% 3.43% 3.60% 3.41%
(F) Non-interest income$95,233 $85,679 $81,038 $79,731 $89,972 $180,912 $158,737
(G) Gains (losses) on investment securities, net12 (351) 14 39 47 (339) (8)
(H) Non-interest expense206,769 194,349 196,580 183,575 183,544 401,118 351,662
Efficiency ratio (H/(E+F-G))62.02% 62.47% 65.50% 62.09% 62.36% 62.24% 63.28%
Efficiency ratio - FTE (H/(D+F-G))61.76% 62.23% 65.04% 61.68% 62.00% 61.99% 62.89%
Calculation of Tangible Common Equity ratio (at period end)
Total shareholders’ equity$3,106,871 $3,031,250 $2,976,939 $2,908,925 $2,839,458
Less: Non-convertible preferred stock(125,000) (125,000) (125,000) (125,000) (125,000)
Less: Intangible assets(531,371) (533,910) (519,505) (520,672) (519,806)
(I) Total tangible common shareholders’ equity$2,450,500 $2,372,340 $2,332,434 $2,263,253 $2,194,652
Total assets$29,464,588 $28,456,772 $27,915,970 $27,358,162 $26,929,265
Less: Intangible assets(531,371) (533,910) (519,505) (520,672) (519,806)
(J) Total tangible assets$28,933,217 $27,922,862 $27,396,465 $26,837,490 $26,409,459
Tangible common equity ratio (I/J)8.5% 8.5% 8.5% 8.4% 8.3%
Calculation of book value per share
Total shareholders’ equity$3,106,871 $3,031,250 $2,976,939 $2,908,925 $2,839,458
Less: Preferred stock(125,000) (125,000) (125,000) (125,000) (125,000)
(K) Total common equity$2,981,871 $2,906,250 $2,851,939 $2,783,925 $2,714,458
(L) Actual common shares outstanding56,329 56,256 55,965 55,838 55,700
Book value per common share (K/L)$52.94 $51.66 $50.96 $49.86 $48.73
Tangible common book value per share (I/L)$43.50 $42.17 $41.68 $40.53 $39.40

Calculation of return on average common equity
(M) Net income applicable to common shares$87,530 $79,931 $66,731 $63,576 $62,847 $167,461 $117,597
Add: After-tax intangible asset amortization734 761 738 672 726 1,495 1,497
(N) Tangible net income applicable to common shares$88,264 $80,692 $67,469 $64,248 $63,573 $168,956 $119,094
Total average shareholders' equity$3,064,154 $2,995,592 $2,942,999 $2,882,682 $2,800,905 $3,030,062 $2,771,768
Less: Average preferred stock(125,000) (125,000) (125,000) (125,000) (161,028) (125,000) (205,893)
(O) Total average common shareholders' equity$2,939,154 $2,870,592 $2,817,999 $2,757,682 $2,639,877 $2,905,062 $2,565,875
Less: Average intangible assets(533,496) (536,676) (519,626) (520,333) (519,340) (535,077) (519,840)
(P) Total average tangible common shareholders’ equity$2,405,658 $2,333,916 $2,298,373 $2,237,349 $2,120,537 $2,369,985 $2,046,035
Return on average common equity, annualized (M/O)11.94% 11.29% 9.39% 9.15% 9.55% 11.62% 9.24%
Return on average tangible common equity, annualized (N/P)14.72% 14.02% 11.65% 11.39% 12.02% 14.38% 11.74%

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 second quarter of 2018, revenue within this unit was primarily driven by increased net interest income due to a higher net interest margin, increased earning assets and one additional day in the second quarter. The net interest margin increased in the second quarter of 2018 compared to the first quarter of 2018 primarily as a result of higher yields on the commercial and commercial real estate loan portfolios (excluding lease loans) and the liquidity management assets portfolio, partially offset by higher rates on interest-bearing liabilities. Mortgage banking revenue increased by $8.9 million from $31.0 million for the first quarter of 2018 to $39.8 million for the second quarter of 2018. The higher revenue was primarily due to originations during the current period increasing to $1.1 billion from $778.9 million in the first quarter of 2018 as a result of typical seasonality in our primary markets and one full quarter's impact of Veterans First. Home purchases represented 80% of loan origination volume for the second quarter of 2018. The increase in revenue from higher originations was tempered by lower production margins and smaller positive fair market value adjustment to mortgage servicing rights as interest rates increased less during the second quarter of 2018 when compared to the first quarter of 2018. The Company's gross commercial and commercial real estate loan pipelines remain strong. Before the impact of scheduled payments and prepayments, at June 30, 2018, gross commercial and commercial real estate loan pipelines totaled $1.3 billion, or $847.4 million when adjusted for the probability of closing, compared to $1.1 billion, or $688.4 million when adjusted for the probability of closing, at March 31, 2018.

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 and accounts receivable financing, value-added, out-sourced administrative services, and other services. In the second quarter of 2018, the specialty finance unit experienced higher revenue as a result of increased volumes and higher yields within its insurance premium financing receivables portfolio. Originations of $2.1 billion during the second quarter of 2018 resulted in a $232.2 million increase in average balances. The increase in average balances along with higher yields on these loans resulted in a $5.3 million increase in interest income attributed to this portfolio. The Company's leasing business remained steady during the second quarter of 2018, with its portfolio of assets, including capital leases, loans and equipment on operating leases, totaling $1.0 billion at the end of the second quarter of 2018. Revenues from the Company's out-sourced administrative services business remained steady, totaling approximately $1.2 million in the second quarter of 2018 and $1.1 million in the first quarter of 2018.

Wealth Management

Through three separate subsidiaries within its wealth management unit, the Company offers a full range of wealth management services, including trust and investment services, asset management, securities brokerage services and 401(k) and retirement plan services. Wealth management revenue slightly decreased in the second quarter of 2018 to $22.6 million from $23.0 million in the first quarter of 2018. The decrease in revenue was primarily due to a decrease in brokerage fees due to a reduction in trading activity during the period. At June 30, 2018, the Company’s wealth management subsidiaries had approximately $24.6 billion of assets under administration, which includes $2.9 billion of assets owned by the Company and its subsidiary banks, representing a $299.0 million increase from the $24.3 billion of assets under administration at March 31, 2018. This increase in assets under administration was primarily driven by new customers and market appreciation. Starting in August, our brokerage services subsidiary, Wayne Hummer Investments, LLC, will be renamed to Wintrust Investments, LLC to better align with our Wintrust brand.

LOANS

Loan Portfolio Mix and Growth Rates

% Growth
(Dollars in thousands) June 30, 2018 December 31, 2017 June 30, 2017 From (1) December 31, 2017 From June 30, 2017
Balance:
Commercial $7,289,060 $6,787,677 $6,406,289 15% 14%
Commercial real estate 6,575,084 6,580,618 6,402,494 — 3
Home equity 593,500 663,045 689,483 (21) (14)
Residential real estate 895,470 832,120 762,810 15 17
Premium finance receivables - commercial 2,833,452 2,634,565 2,648,386 15 7
Premium finance receivables - life insurance 4,302,288 4,035,059 3,719,043 13 16
Consumer and other 121,706 107,713 114,827 26 6
Total loans, net of unearned income, excluding covered loans $22,610,560 $21,640,797 $20,743,332 9% 9%
Covered loans — — 50,119 — (100)
Total loans, net of unearned income $22,610,560 $21,640,797 $20,793,451 9% 9%
Mix:
Commercial 32% 31% 31%
Commercial real estate 29 30 31
Home equity 3 3 3
Residential real estate 4 4 3
Premium finance receivables - commercial 12 12 13
Premium finance receivables - life insurance 19 19 18
Consumer and other 1 1 1
Total loans, net of unearned income, excluding covered loans 100% 100% 100%
Covered loans — — —
Total loans, net of unearned income 100% 100% 100%

(1) Annualized

Commercial and Commercial Real Estate Loan Portfolios

As of June 30, 2018
% ofTotalBalance Nonaccrual > 90 DaysPast Dueand StillAccruing AllowanceFor LoanLossesAllocation
(Dollars in thousands) Balance
Commercial:
Commercial, industrial and other $4,621,789 33.2% $13,543 $— $39,704
Franchise 957,339 6.9 2,438 — 8,743
Mortgage warehouse lines of credit 200,060 1.4 — — 1,598
Asset-based lending 1,042,755 7.5 2,158 — 8,958
Leases 458,614 3.3 249 — 1,237
PCI - commercial loans (1) 8,503 0.1 — 882 487
Total commercial $7,289,060 52.4% $18,388 $882 $60,727
Commercial Real Estate:
Construction $807,235 5.8% $1,554 $— $9,337
Land 115,357 0.8 228 — 3,716
Office 894,349 6.5 1,333 — 5,971
Industrial 882,525 6.4 185 — 5,902
Retail 867,639 6.3 11,540 — 8,085
Multi-family 952,048 6.9 342 — 9,688
Mixed use and other 1,949,242 14.1 4,013 — 14,859
PCI - commercial real estate (1) 106,689 0.8 — 3,194 102
Total commercial real estate $6,575,084 47.6% $19,195 $3,194 $57,660
Total commercial and commercial real estate $13,864,144 100.0% $37,583 $4,076 $118,387
Commercial real estate - collateral location by state:
Illinois $5,100,132 77.6%
Wisconsin 726,874 11.1
Total primary markets $5,827,006 88.7%
Indiana 153,807 2.3
Florida 51,143 0.8
Arizona 55,171 0.8
Michigan 45,670 0.7
California 68,459 1.0
Other (no individual state greater than 0.6%) 373,828 5.7
Total $6,575,084 100.0%

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

DEPOSITS

Deposit Portfolio Mix and Growth Rates

% Growth
(Dollars in thousands) June 30, 2018 December 31, 2017 June 30, 2017 From (1) December 31, 2017 From June 30, 2017
Balance:
Non-interest bearing $6,520,724 $6,792,497 $6,294,052 (8)% 4%
NOW and interest bearing demand deposits 2,452,474 2,315,055 2,459,238 12 —
Wealth management deposits (2) 2,523,572 2,323,699 2,464,162 17 2
Money market 5,205,678 4,515,353 4,449,385 31 17
Savings 2,763,062 2,829,373 2,419,463 (5) 14
Time certificates of deposit 4,899,969 4,407,370 4,519,392 23 8
Total deposits $24,365,479 $23,183,347 $22,605,692 10% 8%
Mix:
Non-interest bearing 27% 29% 28%
NOW and interest bearing demand deposits 10 10 11
Wealth management deposits (2) 11 10 11
Money market 21 20 19
Savings 11 12 11
Time certificates of deposit 20 19 20
Total deposits 100% 100% 100%
  1. Annualized
  2. Represents deposit balances of the Company’s subsidiary banks from brokerage customers of Wayne Hummer Investments, trust and asset management customers of the Company and brokerage customers from unaffiliated companies which have been placed into deposit accounts.

Time Certificates of DepositMaturity/Re-pricing AnalysisAs of June 30, 2018

(Dollars in thousands) CDARs &BrokeredCertificates of Deposit (1) MaxSafeCertificates of Deposit (1) Variable RateCertificates of Deposit (2) Other FixedRate Certificates of Deposit (1) Total TimeCertificates ofDeposit Weighted-AverageRate of MaturingTime Certificates of Deposit (3)
1-3 months $— $36,755 $112,055 $698,040 $846,850 1.02%
4-6 months 75,008 25,935 — 735,477 836,420 1.31%
7-9 months — 16,035 — 715,993 732,028 1.40%
10-12 months 249 21,114 — 761,277 782,640 1.59%
13-18 months — 22,937 — 706,818 729,755 1.61%
19-24 months — 13,810 — 631,437 645,247 2.18%
24+ months 1,000 9,124 — 316,905 327,029 1.87%
Total $76,257 $145,710 $112,055 $4,565,947 $4,899,969 1.52%
  1. This category of certificates of deposit is shown by contractual maturity date.
  2. This category includes variable rate certificates of deposit and savings certificates with the majority repricing on at least a monthly basis.
  3. Weighted-average rate excludes the impact of purchase accounting fair value adjustments.

NET INTEREST INCOME

The following table presents a summary of Wintrust’s average balances, net interest income and related net interest margins, calculated on a fully tax-equivalent basis, for the second quarter of 2018 compared to the first quarter of 2018 (sequential quarters) and second quarter of 2017 (linked quarters), respectively:

Average Balance for three months ended, Interest for three months ended, Yield/Rate for three months ended,
(Dollars in thousands)June 30, 2018 March 31, 2018 June 30, 2017 June 30, 2018 March 31, 2018 June 30, 2017 June 30, 2018 March 31, 2018 June 30, 2017
Interest-bearing deposits with banks and cash equivalents(1)$759,425 $749,973 $722,349 $3,244 $2,796 $1,635 1.71% 1.51% 0.91%
Investment securities(2)2,890,828 2,892,617 2,572,619 20,454 19,659 16,390 2.84 2.76 2.55
FHLB and FRB stock115,119 105,414 99,438 1,455 1,298 1,153 5.07% 4.99 4.66
Liquidity management assets(3)(8)$3,765,372 $3,748,004 $3,394,406 $25,153 $23,753 $19,178 2.68% 2.57% 2.27%
Other earning assets(3)(4)(8)21,244 27,571 25,749 172 174 162 3.24 2.56 2.53
Mortgage loans held-for-sale403,967 281,181 334,843 4,226 2,818 3,420 4.20 4.06 4.10
Loans, net of unearnedincome(3)(5)(8)22,283,541 21,711,342 20,264,875 255,875 235,664 209,472 4.61 4.40 4.15
Covered loans— — 51,823 — — 648 — — 5.01
Total earning assets(8)$26,474,124 $25,768,098 $24,071,696 $285,426 $262,409 $232,880 4.32% 4.13% 3.88%
Allowance for loan and covered loan losses(147,192) (143,108) (132,053)
Cash and due from banks270,240 254,489 242,495
Other assets1,970,407 1,930,118 1,868,811
Total assets$28,567,579 $27,809,597 $26,050,949
NOW and interest bearing demand deposits$2,295,268 $2,255,692 $2,470,130 $1,901 $1,386 $1,214 0.33% 0.25% 0.20%
Wealth management deposits2,365,191 2,250,139 2,091,251 6,992 5,441 2,867 1.19 0.98 0.55
Money market accounts4,883,645 4,520,620 4,435,670 8,111 4,667 2,707 0.67 0.42 0.24
Savings accounts2,702,665 2,813,772 2,329,195 2,709 2,732 1,508 0.40 0.39 0.26
Time deposits4,557,187 4,322,111 4,295,428 15,580 12,323 10,175 1.37 1.16 0.95
Interest-bearing deposits$16,803,956 $16,162,334 $15,621,674 $35,293 $26,549 $18,471 0.84% 0.67% 0.47%
Federal Home Loan Bank advances1,006,407 872,811 689,600 4,263 3,639 2,933 1.70 1.69 1.71
Other borrowings240,066 263,125 240,547 1,698 1,699 1,149 2.84 2.62 1.92
Subordinated notes139,125 139,094 139,007 1,787 1,773 1,786 5.14 5.10 5.14
Junior subordinated debentures253,566 253,566 253,566 2,836 2,463 2,433 4.42 3.89 3.80
Total interest-bearing liabilities$18,443,120 $17,690,930 $16,944,394 $45,877 $36,123 $26,772 1.00% 0.83% 0.63%
Non-interest bearing deposits6,539,731 6,639,845 5,904,679
Other liabilities520,574 483,230 400,971
Equity3,064,154 2,995,592 2,800,905
Total liabilities and shareholders’ equity$28,567,579 $27,809,597 $26,050,949
Interest rate spread(6)(8) 3.32% 3.30% 3.25%
Less: Fully tax-equivalent adjustment (1,379) (1,204) (1,699) (0.02) (0.02) (0.02)
Net free funds/contribution(7)$8,031,004 $8,077,168 $7,127,302 0.31 0.26 0.18
Net interest income/ margin(8) (GAAP) $238,170 $225,082 $204,409 3.61% 3.54% 3.41%
Fully tax-equivalent adjustment 1,379 1,204 1,699 0.02 0.02 0.02
Net interest income/ margin - FTE (8) $239,549 $226,286 $206,108 3.63% 3.56% 3.43%
  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 tax-equivalent adjustment based on the marginal federal corporate tax rate in effect as of the applicable period. The total adjustments for the three months ended June 30, 2018, March 31, 2018 and June 30, 2017 were $1.4 million, $1.2 million and $1.7 million, respectively.
  4. Other earning assets include brokerage customer receivables and trading account securities.
  5. Loans, net of unearned income, include non-accrual loans.
  6. Interest rate spread is the difference between the yield earned on earning assets and the rate paid on interest-bearing liabilities.
  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.
  8. See “Supplemental Financial Measures/Ratios” for additional information on this performance ratio.

For the second quarter of 2018, net interest income totaled $238.2 million, an increase of $13.1 million as compared to the first quarter of 2018 and an increase of $33.8 million as compared to the second quarter of 2017. Net interest margin was 3.61% (3.63% on a fully tax-equivalent basis) during the second quarter of 2018 compared to 3.54% (3.56% on a fully tax-equivalent basis) during the first quarter of 2018 and 3.41% (3.43% on a fully tax-equivalent basis) during the second quarter of 2017. The $13.1 million increase in net interest income in the second quarter of 2018 compared to the first quarter of 2018 was attributable to a $6.2 million increase from higher levels of earning assets, a $4.4 million increase from rising rates and a $2.5 million increase due to one more day in the quarter.

The following table presents a summary of Wintrust's average balances, net interest income and related interest margins, calculated on a fully tax-equivalent basis, for six months ended June 30, 2018 compared to six months ended June 30, 2017:

Average Balance for six months ended, Interest for six months ended, Yield/Rate for six months ended,
(Dollars in thousands)June 30, 2018 June 30, 2017 June 30, 2018 June 30, 2017 June 30, 2018 June 30, 2017
Interest-bearing deposits with banks and cash equivalents (1)$754,725 $751,389 $6,040 $3,259 1.61% 0.87%
Investment securities (2)2,891,718 2,484,611 40,113 30,870 2.80 2.51
FHLB and FRB stock110,293 96,779 2,753 2,223 5.04 4.64
Liquidity management assets(3)(8)$3,756,736 $3,332,779 $48,906 $36,352 2.63% 2.20%
Other earning assets(3)(4)(8)24,390 25,494 346 345 2.86 2.73
Mortgage loans held-for-sale342,914 302,021 7,044 5,818 4.14 3.88
Loans, net of unearned income(3)(5)(8)21,999,022 19,961,821 491,539 406,260 4.51 4.10
Covered loans— 54,505 — 1,566 — 5.79
Total earning assets(8)$26,123,062 $23,676,620 $547,835 $450,341 4.23% 3.84%
Allowance for loan and covered loan losses(145,161) (129,751)
Cash and due from banks262,408 236,077
Other assets1,950,374 1,849,058
Total assets$28,190,683 $25,632,004
NOW and interest bearing demand deposits$2,275,589 $2,491,247 $3,286 $2,307 0.29% 0.19%
Wealth management deposits2,307,983 2,086,793 12,433 5,179 1.09 0.50
Money market accounts4,703,135 4,421,863 12,778 4,928 0.55 0.22
Savings accounts2,757,911 2,278,392 5,440 2,837 0.40 0.25
Time deposits4,440,299 4,266,308 27,905 19,490 1.27 0.92
Interest-bearing deposits$16,484,917 $15,544,603 $61,842 $34,741 0.76% 0.45%
Federal Home Loan Bank advances939,978 436,873 7,902 4,523 1.70 2.09
Other borrowings251,532 247,740 3,397 2,288 2.72 1.86
Subordinated notes139,110 138,994 3,560 3,558 5.12 5.12
Junior subordinated debentures253,566 253,566 5,299 4,841 4.16 3.80
Total interest-bearing liabilities$18,069,103 $16,621,776 $82,000 $49,951 0.91% 0.60%
Non-interest bearing deposits6,589,511 5,845,083
Other liabilities502,007 393,377
Equity3,030,062 2,771,768
Total liabilities and shareholders’ equity$28,190,683 $25,632,004
Interest rate spread(6)(8) 3.32% 3.24%
Less: Fully tax-equivalent adjustment (2,583) (3,401) (0.02) (0.03)
Net free funds/contribution(7)$8,053,959 $7,054,844 0.28 0.17
Net interest income/ margin(8) (GAAP) $463,252 $396,989 3.58% 3.38%
Fully tax-equivalent adjustment 2,583 3,401 0.02 0.03
Net interest income/ margin - FTE (8) $465,835 $400,390 3.60% 3.41%
  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 tax-equivalent adjustment based on a marginal federal corporate tax rate in effect as of the applicable period. The total adjustments for the six months ended June 30, 2018 and 2017 were $2.6 million and $3.4 million respectively.
  4. Other earning assets include brokerage customer receivables and trading account securities.
  5. Loans, net of unearned income, include non-accrual loans.
  6. Interest rate spread is the difference between the yield earned on earning assets and the rate paid on interest-bearing liabilities.
  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.
  8. See “Supplemental Financial Measures/Ratios” for additional information on this performance ratio.

For the first six months of 2018 net interest income totaled $463.3 million, an increase of $66.3 million as compared to the first six months of 2017. Net interest margin was 3.58% (3.60% on a fully tax-equivalent basis) for the first six months of 2018 compared to 3.38% (3.41% on a fully tax-equivalent basis) for the first six months of 2017. The $66.3 million increase in net interest income in the first six months of 2018 compared to the same period of 2017 was attributable to a $39.0 million increase from higher levels of earning assets and a $27.3 million increase from rising rates.

Interest Rate Sensitivity

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

The following interest rate scenarios display the percentage change in net interest income over a one-year time horizon assuming increases of 100 and 200 basis points and a decrease of 100 basis points. The Static Shock Scenario results incorporate actual cash flows and repricing characteristics for balance sheet instruments following an instantaneous, parallel change in market rates based upon a static (i.e. no growth or constant) balance sheet. Conversely, the Ramp Scenario results incorporate management’s projections of future volume and pricing of each of the product lines following a gradual, parallel change in market rates over twelve months. Actual results may differ from these simulated results due to timing, magnitude, and frequency of interest rate changes as well as changes in market conditions and management strategies. The interest rate sensitivity for both the Static Shock and Ramp Scenario at June 30, 2018, March 31, 2018 and June 30, 2017 is as follows:

Static Shock Scenario +200 Basis Points +100 Basis Points -100 BasisPoints
June 30, 2018 19.3% 9.7% (10.7)%
March 31, 2018 18.8% 9.7% (11.6)%
June 30, 2017 19.3% 10.4% (13.5)%

Ramp Scenario+200 Basis Points +100 Basis Points -100 Basis Points
June 30, 20188.7% 4.5% (4.4)%
March 31, 20189.0% 4.6% (4.8)%
June 30, 20177.8% 4.0% (4.6)%

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

Maturities and Sensitivities of Loans to Changes in Interest Rates

The following table classifies the loan portfolio at June 30, 2018 by date at which the loans reprice or mature, and the type of rate exposure:

As of June 30, 2018One year or less From one to five years Over five years
(Dollars in thousands) Total
Commercial
Fixed rate$146,138 $919,964 $611,043 $1,677,145
Variable rate5,608,722 3,193 — 5,611,915
Total commercial$5,754,860 $923,157 $611,043 $7,289,060
Commercial real estate
Fixed rate391,292 1,793,231 267,142 2,451,665
Variable rate4,093,746 29,522 151 4,123,419
Total commercial real estate$4,485,038 $1,822,753 $267,293 $6,575,084
Home equity
Fixed rate10,778 7,900 25,751 44,429
Variable rate549,071 — — 549,071
Total home equity$559,849 $7,900 $25,751 $593,500
Residential real estate
Fixed rate39,358 26,430 197,436 263,224
Variable rate62,023 246,611 323,612 632,246
Total residential real estate$101,381 $273,041 $521,048 $895,470
Premium finance receivables - commercial
Fixed rate2,755,795 77,657 — 2,833,452
Variable rate— — — —
Total premium finance receivables - commercial$2,755,795 $77,657 $— $2,833,452
Premium finance receivables - life insurance
Fixed rate12,778 2,855 3,937 19,570
Variable rate4,282,718 — — 4,282,718
Total premium finance receivables - life insurance$4,295,496 $2,855 $3,937 $4,302,288
Consumer and other
Fixed rate68,038 11,498 2,496 82,032
Variable rate39,674 — — 39,674
Total consumer and other$107,712 $11,498 $2,496 $121,706
Total per category
Fixed rate3,424,177 2,839,535 1,107,805 7,371,517
Variable rate14,635,954 279,326 323,763 15,239,043
Total loans, net of unearned income$18,060,131 $3,118,861 $1,431,568 $22,610,560
Variable Rate Loan Pricing by Index:
Prime$2,596,588
One- month LIBOR7,538,044
Three- month LIBOR482,723
Twelve- month LIBOR4,384,194
Other237,494
Total variable rate$15,239,043

http://resource.globenewswire.com/Resource/Download/3da6161d-7cc3-4410-a2cd-6b0d8c6821bf

Source: Bloomberg

As noted in the table on the previous page, the majority of the Company’s portfolio is tied to LIBOR indices which, as shown in the table above, do not mirror the same increases as the Prime rate when the Federal Reserve raises interest rates. Specifically, the Company has $7.5 billion of variable rate loans tied to one-month LIBOR and $4.4 billion of variable rate loans tied to twelve-month LIBOR. The above chart shows:

Changes in
Prime 1-monthLIBOR 12-monthLIBOR
Third Quarter 2017 0 bps +1 bps +4 bps
Fourth Quarter 2017 +25 bps +33 bps +33 bps
First Quarter 2018 +25 bps +32 bps +55 bps
Second Quarter 2018 +25 bps +21 bps +10 bps

NON-INTEREST INCOME

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

Three Months Ended
June 30, March 31, June 30, Q2 2018 compared to Q1 2018 Q2 2018 compared to Q2 2017
(Dollars in thousands) 2018 2018 2017 $ Change % Change $ Change % Change
Brokerage $5,784 $6,031 $5,449 $(247) (4)% $335 6%
Trust and asset management 16,833 16,955 14,456 (122) (1) 2,377 16
Total wealth management 22,617 22,986 19,905 (369) (2) 2,712 14
Mortgage banking 39,834 30,960 35,939 8,874 29 3,895 11
Service charges on deposit accounts 9,151 8,857 8,696 294 3 455 5
Gains (losses) on investment securities, net 12 (351) 47 363 NM (35) (74)
Fees from covered call options 669 1,597 890 (928) (58) (221) (25)
Trading gains (losses), net 124 103 (420) 21 20 544 NM
Operating lease income, net 8,746 9,691 6,805 (945) (10) 1,941 29
Other:
Interest rate swap fees 3,829 2,237 2,221 1,592 71 1,608 72
BOLI 1,544 714 888 830 NM 656 74
Administrative services 1,205 1,061 986 144 14 219 22
Early pay-offs of capital leases 554 33 10 521 NM 544 NM
Miscellaneous 6,948 7,791 14,005 (843) (11) (7,057) (50)
Total Other 14,080 11,836 18,110 2,244 19 (4,030) (22)
Total Non-Interest Income $95,233 $85,679 $89,972 $9,554 11% $5,261 6%

Six Months Ended
June 30, June 30, $ %
(Dollars in thousands) 2018 2017 Change Change
Brokerage 11,815 11,669 $146 1%
Trust and asset management 33,788 28,384 5,404 19
Total wealth management 45,603 40,053 5,550 14
Mortgage banking 70,794 57,877 12,917 22
Service charges on deposit accounts 18,008 16,961 1,047 6
Losses on investment securities, net (339) (8) (331) NM
Fees from covered call options 2,266 1,649 617 37
Trading gains (losses), net 227 (740) 967 NM
Operating lease income, net 18,437 12,587 5,850 46
Other:
Interest rate swap fees 6,066 3,654 2,412 66
BOLI 2,258 1,873 385 21
Administrative services 2,266 2,010 256 13
Early pay-offs of capital leases 587 1,221 (634) (52)
Miscellaneous 14,739 21,600 (6,861) (32)
Total Other 25,916 30,358 (4,442) (15)
Total Non-Interest Income 180,912 158,737 $22,175 14%

NM - Not meaningful

Notable contributions to the change in non-interest income are as follows:

The increase in wealth management revenue during the current period as compared to the same period of 2017 is primarily attributable to growth in assets under management along with market appreciation related to managed money accounts with fees based on assets under management. Wealth management revenue is comprised of the trust and asset management revenue of The Chicago Trust Company and Great Lakes Advisors and the brokerage commissions, managed money fees and insurance product commissions at Wayne Hummer Investments.

The increase in mortgage banking revenue in the current quarter as compared to the first quarter of 2018 resulted primarily from higher origination volumes as a result of typical seasonality in our primary markets and one full quarter's impact of Veterans First. Mortgage loans originated or purchased for sale totaled $1.1 billion in the second quarter of 2018 as compared to $778.9 million in the first quarter of 2018 and $1.1 billion in the second quarter of 2017. The increase from higher originations was tempered by lower production margins and smaller positive fair market value adjustment to mortgage servicing rights as interest rates increased less during the second quarter of 2018 when compared to the first quarter of 2018. Mortgage banking revenue includes revenue from activities related to originating, selling and servicing residential real estate loans for the secondary market. Mortgage revenue is also impacted by changes in the fair value of mortgage servicing rights as the Company does not hedge this change in fair value. The Company typically originates mortgage loans held-for-sale with associated mortgage servicing rights ("MSRs") retained or released. Additionally, through the acquisition of Veterans First, the Company acquired approximately $13.8 million of MSRs in the first quarter of 2018. The Company records MSRs at fair value on a recurring basis. The table below presents additional selected information regarding mortgage banking revenue for the respective periods.

Three Months Ended Six Months Ended
(Dollars in thousands) June 30,2018 March 31,2018 June 30,2017 June 30,2018 June 30,2017
Originations:
Retail originations $769,279 539,911 $963,396 $1,309,190 $1,588,367
Correspondent originations 122,986 126,464 170,862 249,450 268,358
Veterans First originations 204,108 112,477 — 316,585 —
Total originations (A) $1,096,373 778,852 $1,134,258 $1,875,225 $1,856,725
Purchases as a percentage of originations 80% 73% 84% 77% 77%
Refinances as a percentage of originations 20 27 16 23 23
Total 100% 100% 100% 100% 100%
Production Margin:
Production revenue (B) (1) $27,814 $20,526 $28,140 $48,340 $45,817
Production margin (B / A) 2.54% 2.64% 2.48% 2.58% 2.47%
Mortgage Servicing:
Loans serviced for others (C) $5,228,699 $4,795,335 $2,303,435
MSRs, at fair value (D) 63,194 54,572 27,307
Percentage of MSRs to loans serviced for others (D / C) 1.21% 1.14% 1.19%
Components of Mortgage Banking Revenue:
Production revenue $27,814 $20,526 $28,140 $48,340 $45,817
MSR capitalization, net of payoffs and paydowns 6,525 2,957 4,886 9,482 7,223
MSR fair value adjustments 2,097 4,133 825 6,230 981
Servicing income 3,505 2,905 1,457 6,410 2,773
Other (107) 439 631 332 1,083
Total mortgage banking revenue $39,834 $30,960 $35,939 $70,794 $57,877
  1. Production revenue represents revenue earned from the origination and subsequent sale of mortgages, including gains on loans sold and fees from originations, processing and other related activities, and excludes servicing fees, changes in the fair value of servicing rights and changes to the mortgage recourse obligation.

The Company has typically written call options with terms of less than three months against certain U.S. Treasury and agency securities held in its portfolio for liquidity and other purposes. Management has entered into these transactions with the goal of economically hedging security positions and enhancing its overall return on its investment portfolio by using fees generated from these options to compensate for net interest margin compression. These option transactions are designed to mitigate overall interest rate risk and do not qualify as hedges pursuant to accounting guidance. Fees from covered call options decreased in the current quarter primarily as a result of selling call options against a smaller value of underlying securities resulting in lower premiums received by Company. There were no outstanding call option contracts at June 30, 2018, March 31, 2018 or June 30, 2017.

The decrease in operating lease income in the current quarter compared to the first quarter of 2018 is primarily related to a $1.1 million gain realized in the prior quarter from the sale of certain equipment held on operating leases.

NON-INTEREST EXPENSE

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

Three Months Ended
June 30, March 31, June 30, Q2 2018 compared to Q1 2018 Q2 2018 compared to Q2 2017
Dollars in thousands) 2018 2018 2017 $ Change % Change $ Change % Change
Salaries and employee benefits:
Salaries $66,976 $61,986 $55,215 $4,990 8% $11,761 21%
Commissions and incentive compensation 35,907 31,949 34,050 3,958 12 1,857 5
Benefits 18,792 18,501 17,237 291 2 1,555 9
Total salaries and employee benefits 121,675 112,436 106,502 9,239 8 15,173 14
Equipment 10,527 10,072 9,909 455 5 618 6
Operating lease equipment depreciation 6,940 6,533 5,662 407 6 1,278 23
Occupancy, net 13,663 13,767 12,586 (104) (1) 1,077 9
Data processing 8,752 8,493 7,804 259 3 948 12
Advertising and marketing 11,782 8,824 8,726 2,958 34 3,056 35
Professional fees 6,484 6,649 7,510 (165) (2) (1,026) (14)
Amortization of other intangible assets 997 1,004 1,141 (7) (1) (144) (13)
FDIC insurance 4,598 4,362 3,874 236 5 724 19
OREO expense, net 980 2,926 739 (1,946) (67) 241 33
Other:
Commissions - 3rd party brokers 1,174 1,252 1,033 (78) (6) 141 14
Postage 2,567 1,866 2,080 701 38 487 23
Miscellaneous 16,630 16,165 15,978 465 3 652 4
Total other 20,371 19,283 19,091 1,088 6 1,280 7
Total Non-Interest Expense $206,769 $194,349 $183,544 $12,420 6% $23,225 13%

Six Months Ended
June 30, June 30, $ %
(Dollars in thousands) 2018 2017 Change Change
Salaries and employee benefits:
Salaries $128,962 $110,223 $18,739 17%
Commissions and incentive compensation 67,856 60,693 7,163 12
Benefits 37,293 34,902 2,391 7
Total salaries and employee benefits 234,111 205,818 28,293 14
Equipment 20,599 18,911 1,688 9
Operating lease equipment depreciation 13,473 10,298 3,175 31
Occupancy, net 27,430 25,687 1,743 7
Data processing 17,245 15,729 1,516 10
Advertising and marketing 20,606 13,876 6,730 49
Professional fees 13,133 12,170 963 8
Amortization of other intangible assets 2,001 2,305 (304) (13)
FDIC insurance 8,960 8,030 930 12
OREO expense, net 3,906 2,404 1,502 62
Other:
Commissions - 3rd party brokers 2,426 2,131 295 14
Postage 4,433 3,522 911 26
Miscellaneous 32,795 30,781 2,014 7
Total other 39,654 36,434 3,220 9
Total Non-Interest Expense $401,118 $351,662 $49,456 14%

NM - Not meaningful

Notable contributions to the change in non-interest expense are as follows:

Salaries and employee benefits expense increased in the current quarter compared to the first quarter of 2018 primarily as a result of higher salaries and commissions and incentive compensation. The increase in salaries is primarily due to additional salaries from the Veterans First acquisition as well as increases from merit-based salary increases for current employees effective in February and an increase of the minimum wage for eligible hourly employees effective in March. The increase in commissions and incentive compensation is the result of higher commissions due to increased production in mortgage banking and an increase in bonus and long-term performance-based incentive compensation recognized in the second quarter of 2018 due to higher earnings.

The increase in advertising and marketing expenses during the current quarter compared to the first quarter of 2018 and the second quarter of 2017 is primarily related to higher corporate sponsorship costs, which are typically higher in the spring and summer due to our marketing efforts with the Chicago Cubs and Chicago White Sox, as well as increased spending related to deposit generation and brand awareness to grow our loan and deposit portfolios. Marketing costs are incurred to promote the Company's brand, commercial banking capabilities, the Company's various products, to attract loans and deposits and to announce new branch openings as well as the expansion of the Company's non-bank businesses. The level of marketing expenditures depends on the timing of sponsorship programs and type of marketing programs utilized which are determined based on the market area, targeted audience, competition and various other factors.

The decrease in OREO expense in the current quarter compared to the first quarter of 2018 was primarily the result of negative valuation adjustments and realized losses on the sale of certain OREO properties recognized in the previous quarter from our continuing efforts to address and resolve non-performing assets in a timely fashion. OREO expenses include all costs associated with obtaining, maintaining and selling other real estate owned properties as well as valuation adjustments.

INCOME TAXES

The Company recorded income tax expense of $32.0 million in the second quarter of 2018 compared to $26.1 million in the first quarter of 2018 and $37.0 million in the second quarter of 2017. The effective tax rates were 26.33% in the second quarter of 2018, 24.14% in the first quarter of 2018 and 36.34% in the second quarter of 2017. During the six months ended June 30, 2018, the Company recorded income tax expense of $58.1 million (25.30% effective tax rate) compared to $66.7 million (35.11% effective tax rate) for the same period of 2017. The lower effective tax rates for the 2018 quarterly and year-to-date periods as compared to 2017 were primarily due to the reduction of the federal corporate income tax rate effective in 2018 as a result of the enactment of the Tax Cuts and Jobs Act on December 22, 2017. The Company recorded $712,000 of excess tax benefits in the second quarter of 2018 related to share-based compensation and $2.6 million in the first quarter of 2018, compared to $456,000 in the second quarter of 2017 and $3.4 million in the first quarter of 2017. Excess tax benefits are expected to be higher in the first quarter when the majority of the Company's share-based awards vest, and will fluctuate throughout the year based on the Company's stock price and timing of employee stock option exercises and vesting of other share-based awards.

ASSET QUALITY

Allowance for Credit Losses, excluding covered loans

Three Months Ended Six Months Ended
(Dollars in thousands) June 30,2018 March 31,2018 June 30,2017 June 30,2018 June 30,2017
Allowance for loan losses at beginning of period $139,503 $137,905 $125,819 $137,905 $122,291
Provision for credit losses 5,043 8,346 8,952 13,389 14,268
Other adjustments (1) (44) (40) (30) (84) (86)
Reclassification (to) from allowance for unfunded lending-related commitments — 26 106 26 (32)
Charge-offs:
Commercial 2,210 2,687 913 4,897 1,554
Commercial real estate 155 813 1,985 968 2,246
Home equity 612 357 1,631 969 2,256
Residential real estate 180 571 146 751 475
Premium finance receivables - commercial 3,254 4,721 1,878 7,975 3,305
Premium finance receivables - life insurance — — — — —
Consumer and other 459 129 175 588 309
Total charge-offs 6,870 9,278 6,728 16,148 10,145
Recoveries:
Commercial 666 262 561 928 834
Commercial real estate 2,387 1,687 276 4,074 830
Home equity 171 123 144 294 209
Residential real estate 1,522 40 54 1,562 232
Premium finance receivables - commercial 975 385 404 1,360 1,016
Premium finance receivables - life insurance — — — — —
Consumer and other 49 47 33 96 174
Total recoveries 5,770 2,544 1,472 8,314 3,295
Net charge-offs (1,100) (6,734) (5,256) (7,834) (6,850)
Allowance for loan losses at period end $143,402 $139,503 $129,591 $143,402 $129,591
Allowance for unfunded lending-related commitments at period end 1,243 1,243 1,705 1,243 1,705
Allowance for credit losses at period end $144,645 $140,746 $131,296 $144,645 $131,296
Annualized net charge-offs (recoveries) by category as a percentage of its own respective category’s average:
Commercial 0.09% 0.14% 0.02% 0.11% 0.02%
Commercial real estate (0.14) (0.05) 0.11 (0.09) 0.05
Home equity 0.29 0.15 0.85 0.22 0.58
Residential real estate (0.64) 0.26 0.05 (0.20) 0.07
Premium finance receivables - commercial 0.34 0.68 0.23 0.51 0.19
Premium finance receivables - life insurance 0.00 0.00 0.00 0.00 0.00
Consumer and other 1.21 0.26 0.45 0.76 0.22
Total loans, net of unearned income, excluding covered loans 0.02% 0.13% 0.10% 0.07% 0.07%
Net charge-offs as a percentage of the provision for credit losses 21.80% 80.69% 58.71% 58.51% 48.01%
Loans at period-end, excluding covered loans $22,610,560 $22,062,134 $20,743,332
Allowance for loan losses as a percentage of loans at period end 0.63% 0.63% 0.62%
Allowance for credit losses as a percentage of loans at period end 0.64% 0.64% 0.63%
  1. Includes $742,000 of allowance for covered loan losses reclassified as a result of the termination of all existing loss share agreements with the FDIC during the fourth quarter of 2017.

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

Net charge-offs as a percentage of loans, excluding covered loans, for the second quarter of 2018 totaled two basis points on an annualized basis compared to 13 basis points on an annualized basis in the first quarter of 2018 and 10 basis points on an annualized basis in the second quarter of 2017. Net charge-offs totaled $1.1 million in the second quarter of 2018, a $5.6 million decrease from $6.7 million in the first quarter of 2018 and a $4.2 million decrease from $5.3 million in the second quarter of 2017. The decrease in the second quarter of 2018 compared to first quarter of 2018 is primarily the result of decreased net charge-offs within the commercial real estate, residential real estate and commercial insurance premium finance receivables portfolios. The decrease in the second quarter of 2018 compared to second quarter of 2017 is primarily the result of decreased net charge-offs within the commercial real estate and residential real estate portfolios. The provision for credit losses, excluding the provision for covered loan losses, totaled $5.0 million for the second quarter of 2018 compared to $8.3 million for the first quarter of 2018 and $9.0 million for the second quarter of 2017.

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

The Company also provided a provision for covered loan losses on covered loans when applicable.

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

Three Months Ended Six Months Ended
June 30, March 31, June 30, June 30, June 30,
(Dollars in thousands) 2018 2018 2017 2018 2017
Provision for loan losses $5,043 $8,372 $9,058 $13,415 $14,236
Provision for unfunded lending-related commitments — (26) (106) (26) 32
Provision for covered loan losses — — (61) — (168)
Provision for credit losses $5,043 $8,346 $8,891 $13,389 $14,100
June 30, March 31, June 30,
2018 2018 2017
Allowance for loan losses $143,402 $139,503 $129,591
Allowance for unfunded lending-related commitments 1,243 1,243 1,705
Allowance for covered loan losses — — 1,074
Allowance for credit losses $144,645 $140,746 $132,370

The tables below summarize the calculation of allowance for loan losses for the Company’s core loan portfolio and consumer, niche and purchased loan portfolio, excluding covered loans, as of June 30, 2018 and March 31, 2018.

As of June 30, 2018
Recorded Calculated As a percentageof its own respective
(Dollars in thousands) Investment Allowance category’s balance
Commercial:(1)
Commercial and industrial $4,000,272 $36,381 0.91%
Asset-based lending 1,041,894 8,957 0.86
Tax exempt 432,435 2,856 0.66
Leases 456,906 1,237 0.27
Commercial real estate:(1)
Residential construction 34,350 709 2.06
Commercial construction 770,314 8,606 1.12
Land 113,937 3,714 3.26
Office 863,448 5,967 0.69
Industrial 851,584 5,896 0.69
Retail 836,901 8,047 0.96
Multi-family 926,475 9,679 1.04
Mixed use and other 1,876,807 14,811 0.79
Home equity(1) 547,836 9,437 1.72
Residential real estate(1) 854,176 6,199 0.73
Total core loan portfolio $13,607,335 $122,496 0.90%
Commercial:
Franchise $881,921 $8,661 0.98%
Mortgage warehouse lines of credit 200,060 1,598 0.80
Community Advantage - homeowner associations 169,443 424 0.25
Aircraft 2,586 3 0.12
Purchased non-covered commercial loans (2) 103,543 610 0.59
Commercial real estate:
Purchased non-covered commercial real estate (2) 301,268 231 0.08
Purchased non-covered home equity (2) 45,664 114 0.25
Purchased non-covered residential real estate (2) 41,294 137 0.33
Premium finance receivables
U.S. commercial insurance loans 2,487,886 5,759 0.23
Canada commercial insurance loans (2) 345,566 513 0.15
Life insurance loans (1) 4,118,666 1,462 0.04
Purchased life insurance loans (2) 183,622 — —
Consumer and other (1) 119,143 1,390 1.17
Purchased non-covered consumer and other (2) 2,563 4 0.14
Total consumer, niche and purchased loan portfolio $9,003,225 $20,906 0.23%
Total loans, net of unearned income, excluding covered loans $22,610,560 $143,402 0.63%
  1. Excludes purchased loans reported in accordance with ASC 310-20 and ASC 310-30.
  2. Purchased loans represent loans reported in accordance with ASC 310-20 and ASC 310-30.
As of March 31, 2018
Recorded Calculated As a percentage of its own respective
(Dollars in thousands) Investment Allowance category’s balance
Commercial:(1)
Commercial and industrial $3,989,211 $36,092 0.90%
Asset-based lending 977,063 8,315 0.85
Tax exempt 380,264 2,602 0.68
Leases 412,786 1,222 0.30
Commercial real estate:(1)
Residential construction 44,328 860 1.94
Commercial construction 769,330 8,723 1.13
Land 121,005 3,988 3.30
Office 853,839 5,795 0.68
Industrial 872,761 5,895 0.68
Retail 861,249 8,101 0.94
Multi-family 903,778 9,599 1.06
Mixed use and other 1,866,691 14,319 0.77
Home equity(1) 571,925 9,719 1.70
Residential real estate(1) 823,322 6,073 0.74
Total core loan portfolio $13,447,552 $121,303 0.90%
Commercial:
Franchise $852,166 $7,032 0.83%
Mortgage warehouse lines of credit 163,470 1,297 0.79
Community Advantage - homeowner associations 168,656 422 0.25
Aircraft 2,904 42 1.45
Purchased non-covered commercial loans (2) 114,351 612 0.54
Commercial real estate:
Purchased non-covered commercial real estate (2) 340,539 201 0.06
Purchased non-covered home equity (2) 54,622 141 0.26
Purchased non-covered residential real estate (2) 45,782 205 0.45
Premium finance receivables
U.S. commercial insurance loans 2,263,019 5,415 0.24
Canada commercial insurance loans (2) 313,131 491 0.16
Life insurance loans (1) 4,002,726 1,427 0.04
Purchased life insurance loans (2) 187,235 — —
Consumer and other (1) 103,312 911 0.88
Purchased non-covered consumer and other (2) 2,669 4 0.15
Total consumer, niche and purchased loan portfolio $8,614,582 $18,200 0.21%
Total loans, net of unearned income, excluding covered loans $22,062,134 $139,503 0.63%
  1. Excludes purchased loans reported in accordance with ASC 310-20 and ASC 310-30.
  2. Purchased loans represent loans reported in accordance with ASC 310-20 and ASC 310-30.

As part of the regular quarterly review performed by management to determine if the Company’s allowance for loan losses is appropriate, an analysis is prepared on the loan portfolio based upon a breakout of core loans and consumer, niche and purchased loans. A summary of the allowance for loan losses calculated for the loan components in both the core loan portfolio and the consumer, niche and purchased loan portfolio was shown on the preceding tables as of June 30, 2018 and March 31, 2018.

Purchased loans acquired in a business combination are recorded at estimated fair value on their purchase date. In accordance with accounting guidance, credit deterioration on purchased loans is recorded as a credit discount at the time of purchase instead of as an increase to the allowance for loan losses.

In addition to the $143.4 million of allowance for loan losses, there is $2.9 million of non-accretable credit discount on purchased loans reported in accordance with ASC 310-30 that is available to absorb credit losses.

The tables below show the aging of the Company’s loan portfolio at June 30, 2018 and March 31, 2018:

90+ days 60-89 30-59
As of June 30, 2018 and still days past days past
(Dollars in thousands) Nonaccrual accruing due due Current Total Loans
Loan Balances:
Commercial (1) $18,388 $882 $3,064 $15,923 $7,250,803 $7,289,060
Commercial real estate (1) 19,195 3,194 4,119 27,682 6,520,894 6,575,084
Home equity 9,096 — — 3,226 581,178 593,500
Residential real estate (1) 15,825 1,472 3,637 1,534 873,002 895,470
Premium finance receivables - commercial 14,832 5,159 8,848 10,535 2,794,078 2,833,452
Premium finance receivables - life insurance (1) — — 26,770 17,211 4,258,307 4,302,288
Consumer and other (1) 563 286 150 310 120,397 121,706
Total loans, net of unearned income $77,899 $10,993 $46,588 $76,421 $22,398,659 $22,610,560

As of June 30, 2018Aging as a % of Loan Balance Nonaccrual 90+ daysand stillaccruing 60-89days pastdue 30-59days pastdue Current Total Loans
Commercial (1) 0.3% —% —% 0.2% 99.5% 100.0%
Commercial real estate (1) 0.3 — 0.1 0.4 99.2 100.0
Home equity 1.5 — — 0.5 98.0 100.0
Residential real estate (1) 1.8 0.2 0.4 0.2 97.4 100.0
Premium finance receivables - commercial 0.5 0.2 0.3 0.4 98.6 100.0
Premium finance receivables - life insurance (1) — — 0.6 0.4 99.0 100.0
Consumer and other (1) 0.5 0.2 0.1 0.3 98.9 100.0
Total loans, net of unearned income 0.3% —% 0.2% 0.3% 99.2% 100.0%
  1. Including PCI loans. PCI loans represent loans acquired with evidence of credit quality deterioration since origination, in accordance with ASC 310-30. Loan agings are based upon contractually required payments.
90+ days 60-89 30-59
As of March 31, 2018 and still days past days past
(Dollars in thousands) Nonaccrual accruing due due Current Total Loans
Loan Balances:
Commercial (1) $14,007 $856 $771 $54,233 $6,991,004 $7,060,871
Commercial real estate (1) 21,825 3,107 3,563 58,469 6,546,556 6,633,520
Home equity 9,828 — 1,505 4,033 611,181 626,547
Residential real estate (1) 17,214 1,437 229 8,808 841,416 869,104
Premium finance receivables - commercial 17,342 8,547 6,543 17,756 2,525,962 2,576,150
Premium finance receivables - life insurance (1) — — 5,125 11,420 4,173,416 4,189,961
Consumer and other (1) 720 269 216 291 104,485 105,981
Total loans, net of unearned income $80,936 $14,216 $17,952 $155,010 $21,794,020 $22,062,134

As of March 31, 2018Aging as a % of Loan Balance: Nonaccrual 90+ daysand stillaccruing 60-89days pastdue 30-59days pastdue Current Total Loans
Commercial (1) 0.2% —% —% 0.8% 99.0% 100.0%
Commercial real estate (1) 0.3 — 0.1 0.9 98.7 100.0
Home equity 1.6 — 0.2 0.6 97.6 100.0
Residential real estate (1) 2.0 0.2 — 1.0 96.8 100.0
Premium finance receivables - commercial 0.7 0.3 0.3 0.7 98.0 100.0
Premium finance receivables - life insurance (1) — — 0.1 0.3 99.6 100.0
Consumer and other (1) 0.7 0.3 0.2 0.3 98.5 100.0
Total loans, net of unearned income 0.4% 0.1% 0.1% 0.7% 98.7% 100.0%
  1. Including PCI loans. PCI loans represent loans acquired with evidence of credit quality deterioration since origination, in accordance with ASC 310-30. Loan agings are based upon contractually required payments.

As of June 30, 2018, $46.6 million of all loans, or 0.2%, were 60 to 89 days past due and $76.4 million, or 0.3%, were 30 to 59 days (or one payment) past due. As of March 31, 2018, $18.0 million of all loans, or 0.1%, were 60 to 89 days past due and $155.0 million, or 0.7%, were 30 to 59 days (or one payment) past due. The majority of the commercial and commercial real estate loans shown as 60 to 89 days and 30 to 59 days past due are included on the Company’s internal problem loan reporting system. Loans on this system are closely monitored by management on a monthly basis. All loans within the life insurance premium financing portfolio shown as 60 to 89 days and 30 to 59 days past due (four and nine credits, respectively) remain fully secured.

The Company’s home equity and residential loan portfolios continue to exhibit low delinquency ratios. Home equity loans at June 30, 2018 that are current with regard to the contractual terms of the loan agreement represent 98.0% of the total home equity portfolio. Residential real estate loans at June 30, 2018 that are current with regards to the contractual terms of the loan agreements comprise 97.4% of total residential real estate loans outstanding.

Non-performing Assets, excluding covered assets

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

June 30,March 31,June 30,
(Dollars in thousands)201820182017
Loans past due greater than 90 days and still accruing(1):
Commercial$— $— $—
Commercial real estate— — —
Home equity— — —
Residential real estate— — 179
Premium finance receivables - commercial5,159 8,547 5,922
Premium finance receivables - life insurance— — 1,046
Consumer and other224 207 63
Total loans past due greater than 90 days and still accruing5,383 8,754 7,210
Non-accrual loans(2):
Commercial18,388 14,007 10,191
Commercial real estate19,195 21,825 16,980
Home equity9,096 9,828 9,482
Residential real estate15,825 17,214 14,292
Premium finance receivables - commercial14,832 17,342 10,456
Premium finance receivables - life insurance— — —
Consumer and other563 720 439
Total non-accrual loans77,899 80,936 61,840
Total non-performing loans:
Commercial18,388 14,007 10,191
Commercial real estate19,195 21,825 16,980
Home equity9,096 9,828 9,482
Residential real estate15,825 17,214 14,471
Premium finance receivables - commercial19,991 25,889 16,378
Premium finance receivables - life insurance— — 1,046
Consumer and other787 927 502
Total non-performing loans$83,282 $89,690 $69,050
Other real estate owned18,925 18,481 16,853
Other real estate owned - from acquisitions16,406 18,117 22,508
Other repossessed assets305 113 532
Total non-performing assets$118,918 $126,401 $108,943
TDRs performing under the contractual terms of the loan agreement$57,249 $39,562 $28,008
Total non-performing loans by category as a percent of its own respective category’s period-end balance:
Commercial0.25%0.20%0.16%
Commercial real estate0.29 0.33 0.27
Home equity1.53 1.57 1.38
Residential real estate1.77 1.98 1.90
Premium finance receivables - commercial0.71 1.00 0.62
Premium finance receivables - life insurance— — 0.03
Consumer and other0.65 0.87 0.44
Total loans, net of unearned income0.37%0.41%0.33%
Total non-performing assets as a percentage of total assets0.40%0.44%0.40%
Allowance for loan losses as a percentage of total non-performing loans172.19%155.54%187.68%
  1. As of the dates shown, no TDRs were past due greater than 90 days and still accruing interest.
  2. Non-accrual loans included TDRs totaling $8.1 million, $8.1 million and $5.1 million as of June 30, 2018, March 31, 2018 and June 30, 2017, respectively.

The ratio of non-performing assets to total assets was 0.40% as of June 30, 2018, compared to 0.44% at March 31, 2018, and 0.40% at June 30, 2017. Non-performing assets, excluding covered assets and non-covered PCI loans, totaled $118.9 million at June 30, 2018, compared to $126.4 million at March 31, 2018 and $108.9 million at June 30, 2017. Non-performing loans, excluding covered loans and non-covered PCI loans, totaled $83.3 million, or 0.37% of total loans, at June 30, 2018 compared to $89.7 million, or 0.41% of total loans, at March 31, 2018 and $69.1 million, or 0.33% of total loans, at June 30, 2017. OREO, excluding covered OREO, of $35.3 million at June 30, 2018 decreased $1.3 million compared to $36.6 million at March 31, 2018 and decreased $4.0 million compared to $39.4 million at June 30, 2017.

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

Nonperforming Loans Rollforward

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

Three Months Ended Six Months Ended
June 30, March 31, June 30, June 30, June 30,
(Dollars in thousands) 2018 2018 2017 2018 2017
Balance at beginning of period $89,690 $90,162 $78,979 $90,162 $87,454
Additions, net, from non-covered portfolio 10,403 6,608 10,888 17,011 19,497
Return to performing status (759) (3,753) (975) (4,512) (2,567)
Payments received (4,589) (2,569) (10,684) (7,158) (16,298)
Transfer to OREO and other repossessed assets (3,528) (1,981) (2,543) (5,509) (4,204)
Charge-offs (1,968) (3,555) (4,344) (5,523) (5,624)
Net change for niche loans (1) (5,967) 4,778 (2,271) (1,189) (9,208)
Balance at end of period $83,282 $89,690 $69,050 $83,282 $69,050
  1. This includes activity for premium finance receivables and indirect consumer loans.

TDRs

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

June 30, March 31, June 30,
(Dollars in thousands) 2018 2018 2017
Accruing TDRs:
Commercial $37,560 $19,803 $3,886
Commercial real estate 15,086 16,087 17,349
Residential real estate and other 4,603 3,672 6,773
Total accrual $57,249 $39,562 $28,008
Non-accrual TDRs: (1)
Commercial $1,671 $1,741 $1,110
Commercial real estate 1,362 1,304 1,839
Residential real estate and other 5,028 5,069 2,134
Total non-accrual $8,061 $8,114 $5,083
Total TDRs:
Commercial $39,231 $21,544 $4,996
Commercial real estate 16,448 17,391 19,188
Residential real estate and other 9,631 8,741 8,907
Total TDRs $65,310 $47,676 $33,091
Weighted-average contractual interest rate of TDRs 5.46% 4.84% 4.28%
  1. Included in total non-performing loans.

Other Real Estate Owned

The table below presents a summary of other real estate owned, excluding covered other real estate owned, as of June 30, 2018, March 31, 2018 and June 30, 2017, and shows the activity for the respective period and the balance for each property type:

Three Months Ended
June 30, March 31, June 30,
(Dollars in thousands) 2018 2018 2017
Balance at beginning of period $36,598 $40,646 $39,864
Disposals/resolved (4,557) (3,679) (4,270)
Transfers in at fair value, less costs to sell 4,801 1,789 3,965
Fair value adjustments (1,511) (2,158) (198)
Balance at end of period $35,331 $36,598 $39,361
Period End
June 30, March 31, June 30,
Balance by Property Type 2018 2018 2017
Residential real estate $5,155 $6,407 $7,684
Residential real estate development 2,205 2,229 755
Commercial real estate 27,971 27,962 30,922
Total $35,331 $36,598 $39,361

Items Impacting Comparative Financial Results:

Acquisitions

On January 4, 2018, the Company acquired certain assets and assumed certain liabilities of the mortgage banking business of Veterans First, in a business combination. The Company also acquired mortgage servicing rights assets from Veterans First on approximately 10,000 loans, totaling an estimated $1.6 billion in unpaid principal balance. Veterans First is a consumer direct lender with three offices, operating two in Salt Lake City and one in San Diego, and originated in excess of $800 million in loans in 2017.

On February 14, 2017, the Company acquired certain assets and assumed certain liabilities of the mortgage banking business of American Homestead Mortgage, LLC ("AHM"), in a business combination. AHM is located in Montana's Flathead Valley and originated approximately $55 million of residential mortgage loans in 2016.

Termination of Loss Share Agreements

On October 16, 2017, the Company entered in agreements with the FDIC that terminated all existing loss share agreements with the FDIC. The loss share agreements were related to the Company’s acquisition of assets and assumption of liabilities of eight failed banks through FDIC assisted transactions in 2010, 2011 and 2012.

Under terms of the agreements, the Company made a net payment of $15.2 million to the FDIC as consideration for the early termination of the loss share agreements. The Company recorded a pre-tax gain of approximately $0.4 million in the fourth quarter of 2017 to write off the remaining loss share asset, relieve the claw-back liability and recognize the payment to the FDIC.

Approximately $0.2 million of the remaining net indemnification liabilities that were scheduled to be amortized against future earnings did not occur for the remainder of the fourth quarter of 2017. Additionally, $0.8 million, $0.8 million and $0.7 million each year in 2018, 2019 and 2020, respectively, of previously scheduled amortization will not occur.

The termination of the FDIC loss share agreements has no effect on yields of the loans that were previously covered under these agreements. Subsequent to this transaction, the Company is solely responsible for all future charge-offs, recoveries, gains, losses and expenses related to the previously covered assets as the FDIC will no longer share in those amounts.

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, Wintrust Bank in Chicago, Libertyville Bank & Trust Company, Barrington Bank & Trust Company, N.A., Crystal Lake Bank & Trust Company, N.A., Northbrook Bank & Trust Company, Schaumburg Bank & Trust Company, N.A., Village Bank & Trust in Arlington Heights, Beverly Bank & Trust Company, N.A. in Chicago, Wheaton Bank & Trust Company, State Bank of The Lakes in Antioch, Old Plank Trail Community Bank, N.A. in New Lenox, St. Charles Bank & Trust Company and Town Bank in Hartland, Wisconsin.

The banks also operate facilities in Illinois in Addison, Algonquin, Aurora, Bloomingdale, Buffalo Grove, Cary, Clarendon Hills, Crete, 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, Island Lake, Itasca, Joliet, Lake Bluff, Lake Villa, Lansing, Lemont, Lindenhurst, Lynwood, Markham, McHenry, Mokena, Mount Prospect, Mundelein, Naperville, North Chicago, Northfield, Norridge, Oak Lawn, Orland Park, Palatine, Park Ridge, Prospect Heights, Ravinia, Riverside, Rogers Park, Rolling Meadows, Roselle, Round Lake Beach, Shorewood, Skokie, South Holland, Spring Grove, Steger, Stone Park, Vernon Hills, Wauconda, Western Springs, Willowbrook, Wilmette, Winnetka and Wood Dale and in Albany, Burlington, Clinton, Darlington, Delafield, Delavan, Elm Grove, Genoa City, Kenosha, Lake Geneva, Madison, Menomonee Falls, Milwaukee, Monroe, Pewaukee, Racine, Sharon, Wales, Walworth and Wind Lake, Wisconsin and Dyer, Indiana.

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

FORWARD-LOOKING STATEMENTS

This document contains forward-looking statements within the meaning of federal securities laws. Forward-looking information can be identified through the use of words such as “intend,” “plan,” “project,” “expect,” “anticipate,” “believe,” “estimate,” “contemplate,” “possible,” “will,” “may,” “should,” “would” and “could.” Forward-looking statements and information are not historical facts, are premised on many factors and assumptions, and represent only management’s expectations, estimates and projections regarding future events. Similarly, these statements are not guarantees of future performance and involve certain risks and uncertainties that are difficult to predict, which may include, but are not limited to, those listed below and the Risk Factors discussed under Item 1A of the Company’s 2017 Annual Report on Form 10-K and in any of the Company’s subsequent SEC filings. The Company intends such forward-looking statements to be covered by the safe harbor provisions for forward-looking statements contained in the Private Securities Litigation Reform Act of 1995, and is including this statement for purposes of invoking these safe harbor provisions. Such forward-looking statements may be deemed to include, among other things, statements relating to the Company’s future financial performance, the performance of its loan portfolio, the expected amount of future credit reserves and charge-offs, delinquency trends, growth plans, regulatory developments, securities that the Company may offer from time to time, and management’s long-term performance goals, as well as statements relating to the anticipated effects on financial condition and results of operations from expected developments or events, the Company’s business and growth strategies, including future acquisitions of banks, specialty finance or wealth management businesses, internal growth and plans to form additional de novo banks or branch offices. Actual results could differ materially from those addressed in the forward-looking statements as a result of numerous factors, including the following:

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, WEB CAST AND REPLAY

The Company will hold a conference call at 10:00 a.m. (Central Time) on Wednesday, July 18, 2018 regarding second quarter and year-to-date 2018 results. Individuals interested in listening should call (877) 363-5049 and enter Conference ID #2188524. A simultaneous audio-only web cast and replay of the conference call may be accessed via the Company’s website at http://www.wintrust.com, Investor Relations, Investor News and Events, Presentations & Conference Calls. The text of the second quarter and year-to-date 2018 earnings press release will be available on the home page of the Company’s website at http://www.wintrust.com and at the Investor Relations, Investor News and Events, Press Releases link on its website.

WINTRUST FINANCIAL CORPORATION

Supplemental Financial Information

5 Quarter Trends

WINTRUST FINANCIAL CORPORATION - Supplemental Financial InformationSelected Financial Highlights - 5 Quarter Trends(Dollars in thousands, except per share data)

Three Months Ended
June 30, March 31, December 31, September 30, June 30,
2018 2018 2017 2017 2017
Selected Financial Condition Data (at end of period):
Total assets $29,464,588 $28,456,772 $27,915,970 $27,358,162 $26,929,265
Total loans, excluding covered loans 22,610,560 22,062,134 21,640,797 20,912,781 20,743,332
Total deposits 24,365,479 23,279,327 23,183,347 22,895,063 22,605,692
Junior subordinated debentures 253,566 253,566 253,566 253,566 253,566
Total shareholders’ equity 3,106,871 3,031,250 2,976,939 2,908,925 2,839,458
Selected Statements of Income Data:
Net interest income 238,170 225,082 219,099 215,988 204,409
Net revenue (1) 333,403 310,761 300,137 295,719 294,381
Net income 89,580 81,981 68,781 65,626 64,897
Net income per common share – Basic $1.55 $1.42 $1.19 $1.14 $1.15
Net income per common share – Diluted $1.53 $1.40 $1.17 $1.12 $1.11
Selected Financial Ratios and Other Data:
Performance Ratios:
Net interest margin 3.61% 3.54% 3.45% 3.43% 3.41%
Net interest margin - fully taxable equivalent (non-GAAP) (2) 3.63% 3.56% 3.49% 3.46% 3.43%
Non-interest income to average assets 1.34% 1.25% 1.18% 1.17% 1.39%
Non-interest expense to average assets 2.90% 2.83% 2.87% 2.70% 2.83%
Net overhead ratio (3) 1.57% 1.58% 1.69% 1.53% 1.44%
Return on average assets 1.26% 1.20% 1.00% 0.96% 1.00%
Return on average common equity 11.94% 11.29% 9.39% 9.15% 9.55%
Return on average tangible common equity (non-GAAP) (2) 14.72% 14.02% 11.65% 11.39% 12.02%
Average total assets $28,567,579 $27,809,597 $27,179,484 $27,012,295 $26,050,949
Average total shareholders’ equity 3,064,154 2,995,592 2,942,999 2,882,682 2,800,905
Average loans to average deposits ratio (excluding covered loans) 95.5% 95.2% 92.3% 91.8% 94.1%
Period-end loans to deposits ratio (excluding covered loans) 92.8 94.8 93.3 91.3 91.8
Common Share Data at end of period:
Market price per common share $87.05 $86.05 $82.37 $78.31 $76.44
Book value per common share (2) $52.94 $51.66 $50.96 $49.86 $48.73
Tangible common book value per share (2) $43.50 $42.17 $41.68 $40.53 $39.40
Common shares outstanding 56,329,276 56,256,498 55,965,207 55,838,063 55,699,927
Other Data at end of period:(6)
Leverage Ratio(4) 9.4% 9.3% 9.3% 9.2% 9.2%
Tier 1 Capital to risk-weighted assets (4) 10.0% 10.0% 9.9% 10.0% 9.8%
Common equity Tier 1 capital to risk-weighted assets (4) 9.5% 9.5% 9.4% 9.5% 9.3%
Total capital to risk-weighted assets (4) 12.0% 12.0% 12.0% 12.2% 12.0%
Allowance for credit losses (5) $144,645 $140,746 $139,174 $134,395 $131,296
Non-performing loans 83,282 89,690 90,162 77,983 69,050
Allowance for credit losses to total loans (5) 0.64% 0.64% 0.64% 0.64% 0.63%
Non-performing loans to total loans 0.37% 0.41% 0.42% 0.37% 0.33%
Number of:
Bank subsidiaries 15 15 15 15 15
Banking offices 162 157 157 156 153
  1. Net revenue includes net interest income and non-interest income.
  2. See “Supplemental Financial Measures/Ratios” for additional information on this performance measure/ratio.
  3. The net overhead ratio is calculated by netting total non-interest expense and total non-interest income, annualizing this amount, and dividing by that period’s total average assets. A lower ratio indicates a higher degree of efficiency.
  4. Capital ratios for current quarter-end are estimated.
  5. The allowance for credit losses includes both the allowance for loan losses and the allowance for unfunded lending-related commitments, but excluding the allowance for covered loan losses.
  6. Asset quality ratios exclude covered loans.

WINTRUST FINANCIAL CORPORATION - SUPPLEMENTAL FINANCIAL INFORMATIONConsolidated Statements of Condition - 5 Quarter Trends

(Unaudited) (Unaudited) (Unaudited) (Unaudited)
June 30, March 31, December 31, September 30, June 30,
(In thousands) 2018 2018 2017 2017 2017
Assets
Cash and due from banks $304,580 $231,407 $277,534 $251,896 $296,105
Federal funds sold and securities purchased under resale agreements 62 57 57 56 56
Interest bearing deposits with banks 1,221,407 980,380 1,063,242 1,218,728 1,011,635
Available-for-sale securities, at fair value 1,940,787 1,895,688 1,803,666 1,665,903 1,649,636
Held-to-maturity securities, at amortized cost 890,834 892,937 826,449 819,340 793,376
Trading account securities 862 1,682 995 643 1,987
Equity securities with readily determinable fair value 37,839 37,832 — — —
Federal Home Loan Bank and Federal Reserve Bank stock 96,699 104,956 89,989 87,192 80,812
Brokerage customer receivables 16,649 24,531 26,431 23,631 23,281
Mortgage loans held-for-sale 455,712 411,505 313,592 370,282 382,837
Loans, net of unearned income, excluding covered loans 22,610,560 22,062,134 21,640,797 20,912,781 20,743,332
Covered loans — — — 46,601 50,119
Total loans 22,610,560 22,062,134 21,640,797 20,959,382 20,793,451
Allowance for loan losses (143,402) (139,503) (137,905) (133,119) (129,591)
Allowance for covered loan losses — — — (758) (1,074)
Net loans 22,467,158 21,922,631 21,502,892 20,825,505 20,662,786
Premises and equipment, net 639,345 626,687 621,895 609,978 605,211
Lease investments, net 194,160 190,775 212,335 193,828 191,248
Accrued interest receivable and other assets 666,673 601,794 567,374 580,612 577,359
Trade date securities receivable 450 — 90,014 189,896 133,130
Goodwill 509,957 511,497 501,884 502,021 500,260
Other intangible assets 21,414 22,413 17,621 18,651 19,546
Total assets $29,464,588 $28,456,772 $27,915,970 $27,358,162 $26,929,265
Liabilities and Shareholders’ Equity
Deposits:
Non-interest bearing $6,520,724 $6,612,319 $6,792,497 $6,502,409 $6,294,052
Interest bearing 17,844,755 16,667,008 16,390,850 16,392,654 16,311,640
Total deposits 24,365,479 23,279,327 23,183,347 22,895,063 22,605,692
Federal Home Loan Bank advances 667,000 915,000 559,663 468,962 318,270
Other borrowings 255,701 247,092 266,123 251,680 277,710
Subordinated notes 139,148 139,111 139,088 139,052 139,029
Junior subordinated debentures 253,566 253,566 253,566 253,566 253,566
Trade date securities payable — — — 880 5,151
Accrued interest payable and other liabilities 676,823 591,426 537,244 440,034 490,389
Total liabilities 26,357,717 25,425,522 24,939,031 24,449,237 24,089,807
Shareholders’ Equity:
Preferred stock 125,000 125,000 125,000 125,000 125,000
Common stock 56,437 56,364 56,068 55,940 55,802
Surplus 1,547,511 1,540,673 1,529,035 1,519,596 1,511,080
Treasury stock (5,355) (5,355) (4,986) (4,884) (4,884)
Retained earnings 1,464,494 1,387,663 1,313,657 1,254,759 1,198,997
Accumulated other comprehensive loss (81,216) (73,095) (41,835) (41,486) (46,537)
Total shareholders’ equity 3,106,871 3,031,250 2,976,939 2,908,925 2,839,458
Total liabilities and shareholders’ equity $29,464,588 $28,456,772 $27,915,970 $27,358,162 $26,929,265

WINTRUST FINANCIAL CORPORATION - SUPPLEMENTAL FINANCIAL INFORMATIONConsolidated Statements of Income (Unaudited) - 5 Quarter Trends

Three Months Ended
June 30, March 31, December 31, September 30, June 30,
(In thousands, except per share data) 2018 2018 2017 2017 2017
Interest income
Interest and fees on loans 255,063 234,994 226,447 223,897 209,289
Mortgage loans held-for-sale 4,226 2,818 3,291 3,223 3,420
Interest bearing deposits with banks 3,243 2,796 2,723 3,272 1,634
Federal funds sold and securities purchased under resale agreements 1 — — — 1
Investment securities 19,888 19,128 18,160 16,058 15,524
Trading account securities 4 14 2 8 4
Federal Home Loan Bank and Federal Reserve Bank stock 1,455 1,298 1,067 1,080 1,153
Brokerage customer receivables 167 157 150 150 156
Total interest income 284,047 261,205 251,840 247,688 231,181
Interest expense
Interest on deposits 35,293 26,549 24,930 23,655 18,471
Interest on Federal Home Loan Bank advances 4,263 3,639 2,124 2,151 2,933
Interest on other borrowings 1,698 1,699 1,600 1,482 1,149
Interest on subordinated notes 1,787 1,773 1,786 1,772 1,786
Interest on junior subordinated debentures 2,836 2,463 2,301 2,640 2,433
Total interest expense 45,877 36,123 32,741 31,700 26,772
Net interest income 238,170 225,082 219,099 215,988 204,409
Provision for credit losses 5,043 8,346 7,772 7,896 8,891
Net interest income after provision for credit losses 233,127 216,736 211,327 208,092 195,518
Non-interest income
Wealth management 22,617 22,986 21,910 19,803 19,905
Mortgage banking 39,834 30,960 27,411 28,184 35,939
Service charges on deposit accounts 9,151 8,857 8,907 8,645 8,696
Gains (losses) on investment securities, net 12 (351) 14 39 47
Fees from covered call options 669 1,597 1,610 1,143 890
Trading gains (losses), net 124 103 24 (129) (420)
Operating lease income, net 8,746 9,691 8,598 8,461 6,805
Other 14,080 11,836 12,564 13,585 18,110
Total non-interest income 95,233 85,679 81,038 79,731 89,972
Non-interest expense
Salaries and employee benefits 121,675 112,436 118,009 106,251 106,502
Equipment 10,527 10,072 9,500 9,947 9,909
Operating lease equipment depreciation 6,940 6,533 7,015 6,794 5,662
Occupancy, net 13,663 13,767 14,154 13,079 12,586
Data processing 8,752 8,493 7,915 7,851 7,804
Advertising and marketing 11,782 8,824 7,382 9,572 8,726
Professional fees 6,484 6,649 8,879 6,786 7,510
Amortization of other intangible assets 997 1,004 1,028 1,068 1,141
FDIC insurance 4,598 4,362 4,324 3,877 3,874
OREO expense, net 980 2,926 599 590 739
Other 20,371 19,283 17,775 17,760 19,091
Total non-interest expense 206,769 194,349 196,580 183,575 183,544
Income before taxes 121,591 108,066 95,785 104,248 101,946
Income tax expense 32,011 26,085 27,004 38,622 37,049
Net income $89,580 $81,981 $68,781 $65,626 $64,897
Preferred stock dividends 2,050 2,050 2,050 2,050 2,050
Net income applicable to common shares $87,530 $79,931 $66,731 $63,576 $62,847
Net income per common share - Basic $1.55 $1.42 $1.19 $1.14 $1.15
Net income per common share - Diluted $1.53 $1.40 $1.17 $1.12 $1.11
Cash dividends declared per common share $0.19 $0.19 $0.14 $0.14 $0.14
Weighted average common shares outstanding 56,299 56,137 55,924 55,796 54,775
Dilutive potential common shares 928 888 1,010 966 1,812
Average common shares and dilutive common shares 57,227 57,025 56,934 56,762 56,587

WINTRUST FINANCIAL CORPORATION - SUPPLEMENTAL FINANCIAL INFORMATIONPeriod End Loan Balances - 5 Quarter Trends

June 30, March 31, December 31, September 30, June 30,
(Dollars in thousands) 2018 2018 2017 2017 2017
Balance:
Commercial $7,289,060 $7,060,871 $6,787,677 $6,456,034 $6,406,289
Commercial real estate 6,575,084 6,633,520 6,580,618 6,400,781 6,402,494
Home equity 593,500 626,547 663,045 672,969 689,483
Residential real estate 895,470 869,104 832,120 789,499 762,810
Premium finance receivables - commercial 2,833,452 2,576,150 2,634,565 2,664,912 2,648,386
Premium finance receivables - life insurance 4,302,288 4,189,961 4,035,059 3,795,474 3,719,043
Consumer and other 121,706 105,981 107,713 133,112 114,827
Total loans, net of unearned income, excluding covered loans $22,610,560 $22,062,134 $21,640,797 $20,912,781 $20,743,332
Covered loans — — — 46,601 50,119
Total loans, net of unearned income $22,610,560 $22,062,134 $21,640,797 $20,959,382 $20,793,451
Mix:
Commercial 32% 32% 31% 31% 31%
Commercial real estate 29 30 30 31 31
Home equity 3 3 3 3 3
Residential real estate 4 4 4 3 3
Premium finance receivables - commercial 12 12 12 13 13
Premium finance receivables - life insurance 19 19 19 18 18
Consumer and other 1 — 1 1 1
Total loans, net of unearned income, excluding covered loans 100% 100% 100% 100% 100%
Covered loans — — — — —
Total loans, net of unearned income 100% 100% 100% 100% 100%

WINTRUST FINANCIAL CORPORATION - SUPPLEMENTAL FINANCIAL INFORMATIONPeriod End Deposits Balances - 5 Quarter Trends

June 30, March 31, December 31, September 30, June 30,
(Dollars in thousands) 2018 2018 2017 2017 2017
Balance:
Non-interest bearing $6,520,724 $6,612,319 $6,792,497 $6,502,409 $6,294,052
NOW and interest bearing demand deposits 2,452,474 2,315,122 2,315,055 2,273,025 2,459,238
Wealth management deposits (1) 2,523,572 2,495,134 2,323,699 2,171,758 2,464,162
Money market 5,205,678 4,617,122 4,515,353 4,607,995 4,449,385
Savings 2,763,062 2,901,504 2,829,373 2,673,201 2,419,463
Time certificates of deposit 4,899,969 4,338,126 4,407,370 4,666,675 4,519,392
Total deposits $24,365,479 $23,279,327 $23,183,347 $22,895,063 $22,605,692
Mix:
Non-interest bearing 27% 28% 29% 28% 28%
NOW and interest bearing demand deposits 10 10 10 10 11
Wealth management deposits (1) 11 11 10 10 11
Money market 21 20 20 20 19
Savings 11 12 12 12 11
Time certificates of deposit 20 19 19 20 20
Total deposits 100% 100% 100% 100% 100%
  1. Represents deposit balances of the Company’s subsidiary banks from brokerage customers of Wayne Hummer Investments, trust and asset management customers of the Company and brokerage customers from unaffiliated companies which have been placed into deposit accounts of the Banks.

WINTRUST FINANCIAL CORPORATION - SUPPLEMENTAL FINANCIAL INFORMATIONNet Interest Margin (Including Call Option Income) - 5 Quarter Trends

Three Months Ended
June 30, March 31, December 31, September 30, June 30,
(Dollars in thousands) 2018 2018 2017 2017 2017
Net interest income - FTE $239,549 $226,286 $221,226 $217,947 $206,108
Call option income 669 1,597 1,610 1,143 890
Net interest income including call option income $240,218 $227,883 $222,836 $219,090 $206,998
Yield on earning assets 4.32% 4.13% 4.00% 3.96% 3.88%
Rate on interest-bearing liabilities 1.00 0.83 0.75 0.73 0.63
Rate spread 3.32% 3.30% 3.25% 3.23% 3.25%
Less: Fully tax-equivalent adjustment (0.02) (0.02) (0.04) (0.03) (0.02)
Net free funds contribution 0.31 0.26 0.24 0.23 0.18
Net interest margin (GAAP-derived) 3.61% 3.54% 3.45% 3.43% 3.41%
Fully tax-equivalent adjustment 0.02 0.02 0.04 0.03 0.02
Net interest margin - FTE 3.63% 3.56% 3.49% 3.46% 3.43%
Call option income 0.01 0.03 0.03 0.02 0.01
Net interest margin - FTE, including call option income 3.64% 3.59% 3.52% 3.48% 3.44%

WINTRUST FINANCIAL CORPORATION - SUPPLEMENTAL FINANCIAL INFORMATIONNet Interest Margin (Including Call Option Income - YTD Trends)

Six Months EndedJune 30, Years EndedDecember 31,
(Dollars in thousands) 2018 2017 2016 2015 2014
Net interest income - FTE $465,835 $839,563 $728,145 $646,238 $601,744
Call option income 2,266 4,402 11,470 15,364 7,859
Net interest income including call option income $468,101 $843,965 $739,615 $661,602 $609,603
Yield on earning assets 4.23% 3.91% 3.67% 3.76% 3.96%
Rate on interest-bearing liabilities 0.91 0.67 0.57 0.54 0.55
Rate spread 3.32% 3.24% 3.10% 3.22% 3.41%
Less: Fully tax-equivalent adjustment (0.02) (0.03) (0.02) (0.02) (0.02)
Net free funds contribution 0.28 0.20 0.16 0.14 0.12
Net interest margin (GAAP-derived) 3.58% 3.41% 3.24% 3.34% 3.51%
Fully tax-equivalent adjustment 0.02 0.03 0.02 0.02 0.02
Net interest margin - FTE 3.60% 3.44% 3.26% 3.36% 3.53%
Call option income 0.02 0.02 0.05 0.08 0.05
Net interest margin - FTE, including call option income 3.62% 3.46% 3.31% 3.44% 3.58%

WINTRUST FINANCIAL CORPORATION - SUPPLEMENTAL FINANCIAL INFORMATIONQuarterly Average Balances - 5 Quarter Trends

Three Months Ended
June 30, March 31, December 31, September 30, June 30,
(In thousands) 2018 2018 2017 2017 2017
Interest-bearing deposits with banks and cash equivalents $759,425 $749,973 $914,319 $1,003,572 $722,349
Investment securities 2,890,828 2,892,617 2,736,253 2,652,119 2,572,619
FHLB and FRB stock 115,119 105,414 82,092 81,928 99,438
Liquidity management assets $3,765,372 $3,748,004 $3,732,664 $3,737,619 $3,394,406
Other earning assets 21,244 27,571 26,955 25,844 25,749
Mortgage loans held-for-sale 403,967 281,181 335,385 336,604 334,843
Loans, net of unearned income 22,283,541 21,711,342 21,080,984 20,858,618 20,264,875
Covered loans — — 6,025 48,415 51,823
Total earning assets $26,474,124 $25,768,098 $25,182,013 $25,007,100 $24,071,696
Allowance for loan and covered loan losses (147,192) (143,108) (138,584) (135,519) (132,053)
Cash and due from banks 270,240 254,489 244,097 242,186 242,495
Other assets 1,970,407 1,930,118 1,891,958 1,898,528 1,868,811
Total assets $28,567,579 $27,809,597 $27,179,484 $27,012,295 $26,050,949
NOW and interest bearing demand deposits $2,295,268 $2,255,692 $2,284,576 $2,344,848 $2,470,130
Wealth management deposits 2,365,191 2,250,139 2,005,197 2,320,674 2,091,251
Money market accounts 4,883,645 4,520,620 4,611,515 4,471,342 4,435,670
Savings accounts 2,702,665 2,813,772 2,741,621 2,581,946 2,329,195
Time deposits 4,557,187 4,322,111 4,581,464 4,573,081 4,295,428
Interest-bearing deposits $16,803,956 $16,162,334 $16,224,373 $16,291,891 $15,621,674
Federal Home Loan Bank advances 1,006,407 872,811 324,748 324,996 689,600
Other borrowings 240,066 263,125 255,972 268,850 240,547
Subordinated notes 139,125 139,094 139,065 139,035 139,007
Junior subordinated debentures 253,566 253,566 253,566 253,566 253,566
Total interest-bearing liabilities $18,443,120 $17,690,930 $17,197,724 $17,278,338 $16,944,394
Non-interest bearing deposits 6,539,731 6,639,845 6,605,553 6,419,326 5,904,679
Other liabilities 520,574 483,230 433,208 431,949 400,971
Equity 3,064,154 2,995,592 2,942,999 2,882,682 2,800,905
Total liabilities and shareholders’ equity $28,567,579 $27,809,597 $27,179,484 $27,012,295 $26,050,949

WINTRUST FINANCIAL CORPORATION - SUPPLEMENTAL FINANCIAL INFORMATIONNet Interest Margin - 5 Quarter Trends

Three Months Ended
June 30, 2018 March 31, 2018 December 31, 2017 September 30, 2017 June 30, 2017
Yield earned on:
Interest-bearing deposits with banks and cash equivalents 1.71% 1.51% 1.18% 1.29% 0.91%
Investment securities 2.84 2.76 2.78 2.54 2.55
FHLB and FRB stock 5.07 4.99 5.15 5.23 4.66
Liquidity management assets 2.68% 2.57% 2.44% 2.26% 2.27%
Other earning assets 3.24 2.56 2.27 2.49 2.53
Mortgage loans held-for-sale 4.20 4.06 3.89 3.80 4.10
Loans, net of unearned income 4.61 4.40 4.28 4.27 4.15
Covered loans — — 5.66 4.91 5.01
Total earning assets 4.32% 4.13% 4.00% 3.96% 3.88%
Rate paid on:
NOW and interest bearing demand deposits 0.33% 0.25% 0.24% 0.22% 0.20%
Wealth management deposits 1.19 0.98 0.80 0.81 0.55
Money market accounts 0.67 0.42 0.36 0.31 0.24
Savings accounts 0.40 0.39 0.39 0.33 0.26
Time deposits 1.37 1.16 1.09 1.04 0.95
Interest-bearing deposits 0.84% 0.67% 0.61% 0.58% 0.47%
Federal Home Loan Bank advances 1.70 1.69 2.59 2.63 1.71
Other borrowings 2.84 2.62 2.48 2.19 1.92
Subordinated notes 5.14 5.10 5.14 5.10 5.14
Junior subordinated debentures 4.42 3.89 3.55 4.07 3.80
Total interest-bearing liabilities 1.00% 0.83% 0.75% 0.73% 0.63%
Interest rate spread 3.32% 3.30% 3.25% 3.23% 3.25%
Less: Fully tax-equivalent adjustment (0.02) (0.02) (0.04) (0.03) (0.02)
Net free funds/contribution 0.31 0.26 0.24 0.23 0.18
Net interest margin (GAAP) 3.61% 3.54% 3.45% 3.43% 3.41%
Fully tax-equivalent adjustment 0.02 0.02 0.04 0.03 0.02
Net interest margin - FTE 3.63% 3.56% 3.49% 3.46% 3.43%

WINTRUST FINANCIAL CORPORATION - SUPPLEMENTAL FINANCIAL INFORMATIONNon-Interest Income - 5 Quarter Trends

Three Months Ended
June 30, March 31, December 31, September 30, June 30,
(In thousands) 2018 2018 2017 2017 2017
Brokerage $5,784 $6,031 $6,067 $5,127 $5,449
Trust and asset management 16,833 16,955 15,843 14,676 14,456
Total wealth management 22,617 22,986 21,910 19,803 19,905
Mortgage banking 39,834 30,960 27,411 28,184 35,939
Service charges on deposit accounts 9,151 8,857 8,907 8,645 8,696
Gains (losses) on investment securities, net 12 (351) 14 39 47
Fees from covered call options 669 1,597 1,610 1,143 890
Trading gains (losses), net 124 103 24 (129) (420)
Operating lease income, net 8,746 9,691 8,598 8,461 6,805
Other:
Interest rate swap fees 3,829 2,237 1,963 1,762 2,221
BOLI 1,544 714 754 897 888
Administrative services 1,205 1,061 1,103 1,052 986
Early pay-offs of capital leases 554 33 7 — 10
Miscellaneous 6,948 7,791 8,737 9,874 14,005
Total other income 14,080 11,836 12,564 13,585 18,110
Total Non-Interest Income $95,233 $85,679 $81,038 $79,731 $89,972

WINTRUST FINANCIAL CORPORATION - SUPPLEMENTAL FINANCIAL INFORMATIONNon-Interest Expense - 5 Quarter Trends

Three Months Ended
June 30, March 31, December 31, September 30, June 30,
(In thousands) 2018 2018 2017 2017 2017
Salaries and employee benefits:
Salaries $66,976 $61,986 $58,239 $57,689 $55,215
Commissions and incentive compensation 35,907 31,949 40,723 32,095 34,050
Benefits 18,792 18,501 19,047 16,467 17,237
Total salaries and employee benefits 121,675 112,436 118,009 106,251 106,502
Equipment 10,527 10,072 9,500 9,947 9,909
Operating lease equipment depreciation 6,940 6,533 7,015 6,794 5,662
Occupancy, net 13,663 13,767 14,154 13,079 12,586
Data processing 8,752 8,493 7,915 7,851 7,804
Advertising and marketing 11,782 8,824 7,382 9,572 8,726
Professional fees 6,484 6,649 8,879 6,786 7,510
Amortization of other intangible assets 997 1,004 1,028 1,068 1,141
FDIC insurance 4,598 4,362 4,324 3,877 3,874
OREO expense, net 980 2,926 599 590 739
Other:
Commissions - 3rd party brokers 1,174 1,252 1,057 990 1,033
Postage 2,567 1,866 1,427 1,814 2,080
Miscellaneous 16,630 16,165 15,291 14,956 15,978
Total other expense 20,371 19,283 17,775 17,760 19,091
Total Non-Interest Expense $206,769 $194,349 $196,580 $183,575 $183,544

WINTRUST FINANCIAL CORPORATION - SUPPLEMENTAL FINANCIAL INFORMATIONAllowance for Credit Losses, excluding covered loans - 5 Quarter Trends

Three Months Ended
June 30, March 31, December 31, September 30, June 30,
(Dollars in thousands) 2018 2018 2017 2017 2017
Allowance for loan losses at beginning of period $139,503 $137,905 $133,119 $129,591 $125,819
Provision for credit losses 5,043 8,346 7,772 7,942 8,952
Other adjustments (1) (44) (40) 698 (39) (30)
Reclassification (to) from allowance for unfunded lending-related commitments — 26 7 94 106
Charge-offs:
Commercial 2,210 2,687 1,340 2,265 913
Commercial real estate 155 813 1,001 989 1,985
Home equity 612 357 728 968 1,631
Residential real estate 180 571 542 267 146
Premium finance receivables - commercial 3,254 4,721 2,314 1,716 1,878
Premium finance receivables - life insurance — — — — —
Consumer and other 459 129 207 213 175
Total charge-offs 6,870 9,278 6,132 6,418 6,728
Recoveries:
Commercial 666 262 235 801 561
Commercial real estate 2,387 1,687 1,037 323 276
Home equity 171 123 359 178 144
Residential real estate 1,522 40 165 55 54
Premium finance receivables - commercial 975 385 613 499 404
Premium finance receivables - life insurance — — — — —
Consumer and other 49 47 32 93 33
Total recoveries 5,770 2,544 2,441 1,949 1,472
Net charge-offs (1,100) (6,734) (3,691) (4,469) (5,256)
Allowance for loan losses at period end $143,402 $139,503 $137,905 $133,119 $129,591
Allowance for unfunded lending-related commitments at period end 1,243 1,243 1,269 1,276 1,705
Allowance for credit losses at period end $144,645 $140,746 $139,174 $134,395 $131,296
Annualized net charge-offs (recoveries) by category as a percentage of its own respective category’s average:
Commercial 0.09% 0.14% 0.07% 0.09% 0.02%
Commercial real estate (0.14) (0.05) 0.00 0.04 0.11
Home equity 0.29 0.15 0.22 0.46 0.85
Residential real estate (0.64) 0.26 0.18 0.11 0.05
Premium finance receivables - commercial 0.34 0.68 0.26 0.18 0.23
Premium finance receivables - life insurance 0.00 0.00 0.00 0.00 0.00
Consumer and other 1.21 0.26 0.52 0.37 0.45
Total loans, net of unearned income, excluding covered loans 0.02% 0.13% 0.07% 0.08% 0.10%
Net charge-offs as a percentage of the provision for credit losses 21.81% 80.69% 47.49% 56.27% 58.71%
Loans at period-end $22,610,560 $22,062,134 $21,640,797 $20,912,781 $20,743,332
Allowance for loan losses as a percentage of loans at period end 0.63% 0.63% 0.64% 0.64% 0.62%
Allowance for credit losses as a percentage of loans at period end 0.64% 0.64% 0.64% 0.64% 0.63%
  1. Includes $742,000 of allowance for covered loan losses reclassified as a result of the termination of all existing loss share agreements with the FDIC during the fourth quarter of 2017.

WINTRUST FINANCIAL CORPORATION - SUPPLEMENTAL FINANCIAL INFORMATIONNon-Performing Assets, excluding covered assets - 5 Quarter Trends

June 30, March 31, December 31, September 30, June 30,
(Dollars in thousands)2018 2018 2017 (3) 2017 2017
Loans past due greater than 90 days and still accruing(1):
Commercial$— $— $— $— $—
Commercial real estate— — — — —
Home equity— — — — —
Residential real estate— — 3,278 — 179
Premium finance receivables - commercial5,159 8,547 9,242 9,584 5,922
Premium finance receivables - life insurance— — — 6,740 1,046
Consumer and other224 207 40 159 63
Total loans past due greater than 90 days and still accruing5,383 8,754 12,560 16,483 7,210
Non-accrual loans(2):
Commercial18,388 14,007 15,696 13,931 10,191
Commercial real estate19,195 21,825 22,048 14,878 16,980
Home equity9,096 9,828 8,978 7,581 9,482
Residential real estate15,825 17,214 17,977 14,743 14,292
Premium finance receivables - commercial14,832 17,342 12,163 9,827 10,456
Premium finance receivables - life insurance— — — — —
Consumer and other563 720 740 540 439
Total non-accrual loans77,899 80,936 77,602 61,500 61,840
Total non-performing loans:
Commercial18,388 14,007 15,696 13,931 10,191
Commercial real estate19,195 21,825 22,048 14,878 16,980
Home equity9,096 9,828 8,978 7,581 9,482
Residential real estate15,825 17,214 21,255 14,743 14,471
Premium finance receivables - commercial19,991 25,889 21,405 19,411 16,378
Premium finance receivables - life insurance— — — 6,740 1,046
Consumer and other787 927 780 699 502
Total non-performing loans$83,282 $89,690 $90,162 $77,983 $69,050
Other real estate owned18,925 18,481 20,244 17,312 16,853
Other real estate owned - from acquisitions16,406 18,117 20,402 20,066 22,508
Other repossessed assets305 113 153 301 532
Total non-performing assets$118,918 $126,401 $130,961 $115,662 $108,943
TDRs performing under the contractual terms of the loan agreement$57,249 $39,562 $39,683 $26,972 $28,008
Total non-performing loans by category as a percent of its own respective category’s period-end balance:
Commercial0.25% 0.20% 0.23% 0.22% 0.16%
Commercial real estate0.29 0.33 0.34 0.23 0.27
Home equity1.53 1.57 1.35 1.13 1.38
Residential real estate1.77 1.98 2.55 1.87 1.90
Premium finance receivables - commercial0.71 1.00 0.81 0.73 0.62
Premium finance receivables - life insurance— — — 0.18 0.03
Consumer and other0.65 0.87 0.72 0.53 0.44
Total loans, net of unearned income0.37% 0.41% 0.42% 0.37% 0.33%
Total non-performing assets as a percentage of total assets0.40% 0.44% 0.47% 0.42% 0.40%
Allowance for loan losses as a percentage of total non-performing loans172.19% 155.54% 152.95% 170.70% 187.68%
  1. As of the dates shown, no TDRs were past due greater than 90 days and still accruing interest.
  2. Non-accrual loans included TDRs totaling $8.1 million, $8.1 million, $10.1 million, $6.2 million and $5.1 million as of June 30, 2018, March 31, 2018, December 31, 2017, September 30, 2017 and June 30, 2017, respectively.
  3. Includes $2.6 million of non-performing loans and $2.9 million of other real estate owned reclassified from covered assets as a result of the termination of all existing loss share agreements with the FDIC during the fourth quarter of 2017.
FOR MORE INFORMATION CONTACT:
Edward J. Wehmer, President & Chief Executive Officer
David A. Dykstra, Senior Executive Vice President & Chief Operating Officer
(847) 939-9000
Web site address: www.wintrust.com

Source: Wintrust Financial Corporation

Categories

Press Releases

Next Articles