Wintrust Financial Corporation Reports Record First Quarter 2017 Net Income, an Increase of 19% Over Prior Year

ROSEMONT, Ill., April 18, 2017 (GLOBE NEWSWIRE) -- Wintrust Financial Corporation (“Wintrust” or “the Company”) (Nasdaq:WTFC) announced net income of $58.4 million or $1.00 per diluted common share for the first quarter of 2017 compared to net income of $54.6 million or $0.94 per diluted common share for the fourth quarter of 2016 and $49.1 million or $0.90 per diluted common share for the first quarter of 2016.

Highlights of the First Quarter of 2017*:

Net interest margin increased substantially as a result of the recent rate increase in December 2016 and better utilization of excess liquidity in the first quarter of 2017. Net interest income increased $1.8 million from the prior quarter as the improvement in net interest margin more than offset two less days in the quarter.
Return on average assets increased to 0.94% from 0.85% in the fourth quarter of 2016. Return on average common equity increased to 8.93% from 8.32% in the fourth quarter of 2016.
Net charge-offs, excluding covered loans, decreased to $1.6 million. Net charge-offs as a percentage of average total loans, excluding covered loans, decreased to three basis points, the lowest ratio since the second quarter of 2004.
Non-performing loans as a percentage of total loans, excluding covered loans, decreased to 0.40% from 0.44% in the fourth quarter of 2016 and the allowance for loan losses as a percentage of total non-performing loans, excluding covered loans, increased to 159% from 140% in the prior quarter.
Total loans, excluding covered loans, mortgage loans held-for-sale and mortgage warehouse lines of credit, increased by $278 million from the prior quarter.
Total assets increased by $110 million from the prior quarter and now total $25.8 billion.
Reduced operating expenses by $12.3 million from the prior quarter to $168.1 million.
Acquired American Homestead Mortgage, LLC ("AHM") located in Montana's Flathead Valley, which will supplement our existing mortgage banking operations in the Rocky Mountain region and continue to diversify our current product mix.

* See "Supplemental Financial Measures/Ratios" on pages 10-11 for more information on non-GAAP measures.

Edward J. Wehmer, President and Chief Executive Officer, commented, “Wintrust reported record net income of $58.4 million for the first quarter of 2017. These results were driven by our momentum from 2016 carrying into 2017 with continued steady loan growth in the first quarter. The first quarter of 2017 was also characterized by our increased net interest margin, improved credit quality metrics and reduced operating costs, while offsetting an expected decrease in mortgage banking revenue. As we saw in the first quarter, the structure of our balance sheet is well positioned to take advantage of higher interest rates, and is designed to provide an internal hedge to offset lower earnings from our mortgage banking operations and from reduced revenue from our covered call option program."

Mr. Wehmer continued, “Excluding covered loans, mortgage loans held-for-sale and mortgage warehouse lines of credit, we grew our loan portfolio by $278 million during the first quarter, which was driven by steady growth in the commercial portfolio and life insurance premium finance receivables portfolio. The substantial improvement in net interest margin during the period was primarily attributable to the increase in interest rates by the Federal Reserve Bank in December, which added eight basis points. We remain well positioned for the March interest rate increase and expected rising rates in the future. The net interest margin was also positively impacted by six basis points in the first quarter of 2017 from investing excess liquidity held at year-end. The increased loan volumes and improved net interest margin along with the continued momentum from loan growth at the very end of 2016 resulted in an increase in net interest income of $1.8 million despite two less days in the quarter. Our loan pipelines remain consistently strong."

Commenting on credit quality, Mr. Wehmer noted, “During the first quarter of 2017, the Company continued its practice of timely addressing and resolving non-performing credits. Excluding covered loans, low net charge-offs continued in the current quarter with net charge-offs totaling $1.6 million in the first quarter of 2017 compared to $2.8 million in the prior quarter. Additionally, net charge-offs as a percentage of average total loans decreased to 0.03% from 0.06% in the fourth quarter. Total non-performing assets, excluding covered assets, as a percentage of total assets decreased to 0.46% compared to 0.50% as of the prior quarter-end. Excluding covered loans, non-performing loans as a percentage of total loans decreased to 0.40% at the end of first quarter of 2017 compared to 0.44% at the end of the fourth quarter of 2016. As a percentage of non-performing loans, the allowance for loan losses, excluding covered loans, remained strong at 159%. We believe that the Company's reserves remain appropriate."

Mr. Wehmer further commented, “Mortgage banking revenue in the first quarter of 2017 totaled $21.9 million, a decrease of $13.6 million compared to the fourth quarter of 2016 and a slight increase of $203,000 compared to the first quarter of 2016. The decreased revenue from the fourth quarter of 2016 resulted from origination volumes declining to $722 million from $1.2 billion as a result of the recent rise in interest rates and typical seasonality in January and February. Our mortgage pipeline strengthened in March and is expected to continue to strengthen in the second quarter. We continue to look for opportunities to further enhance the mortgage banking business both organically and through acquisitions. To that end, in the first quarter, we added to our mortgage banking business with the acquisition of AHM."

Turning to the future, Mr. Wehmer stated, “Our growth engine continued its momentum into 2017 and we anticipate the positive momentum realized in the first quarter to continue in all areas of our business for the remainder of 2017. Loan growth at the end of the current quarter should add to this momentum as period-end loan balances, excluding covered loans, mortgage loans held-for-sale and mortgage warehouse lines of credit, exceeded the first quarter average balances by approximately $240 million. Wintrust continues to take a steady and measured approach to achieve our main objectives of growing franchise value, increasing profitability, leveraging our expense infrastructure and increasing shareholder value. Evaluating strategic acquisitions and organic branch growth will continue to be a part of our overall growth strategy with the goal of becoming Chicago’s bank and Wisconsin’s bank. Our opportunities for both internal growth and external growth remain consistently strong."

The graphs below illustrate certain highlights of the first quarter of 2017.

http://www.globenewswire.com/NewsRoom/AttachmentNg/32dff03e-6e37-407b-aee8-ba4cd9878c75

Wintrust’s key operating measures and growth rates for the first quarter of 2017, as compared to the sequential and linked quarters, are shown in the table below:

										% or⁽⁴⁾ basis point (bp)change from 4th Quarter 2016			% or basis point (bp) change from 1st Quarter 2016
	Three Months Ended
(Dollars in thousands)	March 31, 2017			December 31, 2016			March 31, 2016
Net income	$	58,378		$	54,608		$	49,111		7		%	19	%
Net income per common share – diluted	$	1.00		$	0.94		$	0.90		6		%	11	%
Net revenue ⁽¹⁾	$	261,345		$	276,053		$	240,261		(5	)	%	9	%
Net interest income	$	192,580		$	190,778		$	171,509		1		%	12	%
Net interest margin	3.36		%	3.21		%	3.29		%	15		bp	7	bp
Net interest margin - fully taxable equivalent (non-GAAP) ⁽²⁾	3.39		%	3.23		%	3.32		%	16		bp	7	bp
Net overhead ratio ⁽³⁾	1.60		%	1.48		%	1.49		%	12		bp	11	bp
Return on average assets	0.94		%	0.85		%	0.86		%	9		bp	8	bp
Return on average common equity	8.93		%	8.32		%	8.55		%	61		bp	38	bp
Return on average tangible common equity (non-GAAP) ⁽²⁾	11.44		%	10.68		%	11.33		%	76		bp	11	bp
At end of period
Total assets	$	25,778,893		$	25,668,553		$	23,488,168		2		%	10	%
Total loans, excluding loans held-for-sale, excluding covered loans	19,931,058			19,703,172			17,446,413			5		%	14	%
Total loans, including loans held-for-sale, excluding covered loans	20,220,022			20,121,546			17,760,967			2		%	14	%
Total deposits	21,730,441			21,658,632			19,217,071			1		%	13	%
Total shareholders’ equity	2,764,983			2,695,617			2,418,442			10		%	14	%

(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 CORPORATION
Selected Financial Highlights

	Three Months Ended
(Dollars in thousands, except per share data)	March 31, 2017			December 31, 2016			March 31, 2016
Selected Financial Condition Data (at end of period):
Total assets	$	25,778,893		$	25,668,553		$	23,488,168
Total loans, excluding loans held-for-sale and covered loans	19,931,058			19,703,172			17,446,413
Total deposits	21,730,441			21,658,632			19,217,071
Junior subordinated debentures	253,566			253,566			253,566
Total shareholders’ equity	2,764,983			2,695,617			2,418,442
Selected Statements of Income Data:
Net interest income	$	192,580		$	190,778		$	171,509
Net revenue ⁽¹⁾	261,345			276,053			240,261
Net income	58,378			54,608			49,111
Net income per common share – Basic	$	1.05		$	0.98		$	0.94
Net income per common share – Diluted	$	1.00		$	0.94		$	0.90
Selected Financial Ratios and Other Data:
Performance Ratios:
Net interest margin	3.36		%	3.21		%	3.29		%
Net interest margin - fully taxable equivalent (non-GAAP) ⁽²⁾	3.39		%	3.23		%	3.32		%
Non-interest income to average assets	1.11		%	1.32		%	1.21		%
Non-interest expense to average assets	2.70		%	2.80		%	2.70		%
Net overhead ratio ⁽³⁾	1.60		%	1.48		%	1.49		%
Return on average assets	0.94		%	0.85		%	0.86		%
Return on average common equity	8.93		%	8.32		%	8.55		%
Return on average tangible common equity (non-GAAP) ⁽²⁾	11.44		%	10.68		%	11.33		%
Average total assets	$	25,207,348		$	25,611,060		$	22,902,913
Average total shareholders’ equity	2,739,050			2,689,876			2,389,770
Average loans to average deposits ratio (excluding loans held-for-sale, excluding covered loans)	92.5		%	89.6		%	92.2		%
Average loans to average deposits ratio (excluding loans held-for-sale, including covered loans)	92.7		%	89.9		%	93.0		%
Common Share Data at end of period:
Market price per common share	$	69.12		$	72.57		$	44.34
Book value per common share ⁽²⁾	$	47.88		$	47.12		$	44.67
Tangible common book value per share ⁽²⁾	$	37.97		$	37.08		$	34.20
Common shares outstanding	52,503,663			51,880,540			48,518,998
Other Data at end of period:⁽⁶⁾
Leverage Ratio ⁽⁴⁾	9.3		%	8.9		%	8.7		%
Tier 1 capital to risk-weighted assets ⁽⁴⁾	9.9		%	9.7		%	9.6		%
Common equity Tier 1 capital to risk-weighted assets ⁽⁴⁾	8.9		%	8.6		%	8.4		%
Total capital to risk-weighted assets ⁽⁴⁾	12.1		%	11.9		%	12.1		%
Allowance for credit losses ⁽⁵⁾	$	127,630		$	123,964		$	111,201
Non-performing loans	78,979			87,454			89,499
Allowance for credit losses to total loans ⁽⁵⁾	0.64		%	0.63		%	0.64		%
Non-performing loans to total loans	0.40		%	0.44		%	0.51		%
Number of:
Bank subsidiaries	15			15			15
Banking offices	155			155			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. As of January 1, 2015 capital ratios are calculated under the requirements of Basel III.

(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 SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CONDITION

	(Unaudited)						(Unaudited)
(In thousands)	March 31, 2017			December 31, 2016			March 31, 2016
Assets
Cash and due from banks	$	214,102		$	267,194		$	208,480
Federal funds sold and securities purchased under resale agreements	3,046			2,851			3,820
Interest bearing deposits with banks	1,007,468			980,457			817,013
Available-for-sale securities, at fair value	1,803,733			1,724,667			770,983
Held-to-maturity securities, at amortized cost	667,764			635,705			911,715
Trading account securities	714			1,989			2,116
Federal Home Loan Bank and Federal Reserve Bank stock	78,904			133,494			113,222
Brokerage customer receivables	23,171			25,181			28,266
Mortgage loans held-for-sale	288,964			418,374			314,554
Loans, net of unearned income, excluding covered loans	19,931,058			19,703,172			17,446,413
Covered loans	52,359			58,145			138,848
Total loans	19,983,417			19,761,317			17,585,261
Allowance for loan losses	(125,819		)	(122,291		)	(110,171		)
Allowance for covered loan losses	(1,319		)	(1,322		)	(2,507		)
Net loans	19,856,279			19,637,704			17,472,583
Premises and equipment, net	598,746			597,301			591,608
Lease investments, net	155,233			129,402			89,337
Accrued interest receivable and other assets	560,741			593,796			647,853
Trade date securities receivable	—			—			1,008,613
Goodwill	499,341			498,587			484,280
Other intangible assets	20,687			21,851			23,725
Total assets	$	25,778,893		$	25,668,553		$	23,488,168
Liabilities and Shareholders’ Equity
Deposits:
Non-interest bearing	$	5,790,579		$	5,927,377		$	5,205,410
Interest bearing	15,939,862			15,731,255			14,011,661
Total deposits	21,730,441			21,658,632			19,217,071
Federal Home Loan Bank advances	227,585			153,831			799,482
Other borrowings	238,787			262,486			253,126
Subordinated notes	138,993			138,971			138,888
Junior subordinated debentures	253,566			253,566			253,566
Accrued interest payable and other liabilities	424,538			505,450			407,593
Total liabilities	23,013,910			22,972,936			21,069,726
Shareholders’ Equity:
Preferred stock	251,257			251,257			251,257
Common stock	52,605			51,978			48,608
Surplus	1,381,886			1,365,781			1,194,750
Treasury stock	(4,884		)	(4,589		)	(4,145		)
Retained earnings	1,143,943			1,096,518			967,882
Accumulated other comprehensive loss	(59,824		)	(65,328		)	(39,910		)
Total shareholders’ equity	2,764,983			2,695,617			2,418,442
Total liabilities and shareholders’ equity	$	25,778,893		$	25,668,553		$	23,488,168

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


	Three Months Ended
(In thousands, except per share data)	March 31, 2017			December 31, 2016		March 31, 2016
Interest income
Interest and fees on loans	$	199,314		$	199,155	$	173,127
Interest bearing deposits with banks	1,623			1,541		746
Federal funds sold and securities purchased under resale agreements	1			1		1
Investment securities	13,573			12,954		17,190
Trading account securities	11			32		11
Federal Home Loan Bank and Federal Reserve Bank stock	1,070			1,144		937
Brokerage customer receivables	167			186		219
Total interest income	215,759			215,013		192,231
Interest expense
Interest on deposits	16,270			16,413		12,781
Interest on Federal Home Loan Bank advances	1,590			2,439		2,886
Interest on other borrowings	1,139			1,074		1,058
Interest on subordinated notes	1,772			1,779		1,777
Interest on junior subordinated debentures	2,408			2,530		2,220
Total interest expense	23,179			24,235		20,722
Net interest income	192,580			190,778		171,509
Provision for credit losses	5,209			7,350		8,034
Net interest income after provision for credit losses	187,371			183,428		163,475
Non-interest income
Wealth management	20,148			19,512		18,320
Mortgage banking	21,938			35,489		21,735
Service charges on deposit accounts	8,265			8,054		7,406
(Losses) gains on investment securities, net	(55		)	1,575		1,325
Fees from covered call options	759			1,476		1,712
Trading (losses) gains, net	(320		)	1,007		(168		)
Operating lease income, net	5,782			5,171		2,806
Other	12,248			12,991		15,616
Total non-interest income	68,765			85,275		68,752
Non-interest expense
Salaries and employee benefits	99,316			104,735		95,811
Equipment	9,002			9,532		8,767
Operating lease equipment depreciation	4,636			4,219		2,050
Occupancy, net	13,101			14,254		11,948
Data processing	7,925			7,687		6,519
Advertising and marketing	5,150			6,691		3,779
Professional fees	4,660			5,425		4,059
Amortization of other intangible assets	1,164			1,158		1,298
FDIC insurance	4,156			4,726		3,613
OREO expense, net	1,665			1,843		560
Other	17,343			20,101		15,326
Total non-interest expense	168,118			180,371		153,730
Income before taxes	88,018			88,332		78,497
Income tax expense	29,640			33,724		29,386
Net income	$	58,378		$	54,608	$	49,111
Preferred stock dividends	3,628			3,629		3,628
Net income applicable to common shares	$	54,750		$	50,979	$	45,483
Net income per common share - Basic	$	1.05		$	0.98	$	0.94
Net income per common share - Diluted	$	1.00		$	0.94	$	0.90
Cash dividends declared per common share	$	0.14		$	0.12	$	0.12
Weighted average common shares outstanding	52,267			51,812		48,448
Dilutive potential common shares	4,160			4,152		3,820
Average common shares and dilutive common shares	56,427			55,964		52,268

EARNINGS PER SHARE

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

		Three Months Ended
(In thousands, except per share data)		March 31, 2017		December 31, 2016		March 31, 2016
Net income		$	58,378	$	54,608	$	49,111
Less: Preferred stock dividends		3,628		3,629		3,628
Net income applicable to common shares—Basic	(A)	54,750		50,979		45,483
Add: Dividends on convertible preferred stock, if dilutive		1,578		1,578		1,578
Net income applicable to common shares—Diluted	(B)	56,328		52,557		47,061
Weighted average common shares outstanding	(C)	52,267		51,812		48,448
Effect of dilutive potential common shares:
Common stock equivalents		1,060		1,052		750
Convertible preferred stock, if dilutive		3,100		3,100		3,070
Weighted average common shares and effect of dilutive potential common shares	(D)	56,427		55,964		52,268
Net income per common share:
Basic	(A/C)	$	1.05	$	0.98	$	0.94
Diluted	(B/D)	$	1.00	$	0.94	$	0.90

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 17, 2017, the Company delivered notice to the holders of the outstanding 5.00% Non-Cumulative Perpetual Convertible Preferred Stock, Series C (“Series C Preferred Stock”) that the Series C Preferred Stock will mandatorily convert on April 27, 2017 (the “Mandatory Conversion Date”). On the Mandatory Conversion Date, 126,257 shares of Series C Preferred Stock will be converted to shares of the Company’s common stock, no par value (“Common Stock”). Holders of the Series C Preferred Stock will receive 24.72 shares of Common Stock for each share of Series C Preferred Stock converted. Cash (computed to the nearest cent) will be paid in lieu of fractional shares of Common Stock. The last dividend with respect to the Series C Preferred Stock was paid on April 17, 2017 to holders of record on April 1, 2017.

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. 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
	March 31,			December 31,			September 30,			June 30,			March 31,
(Dollars and shares in thousands)	2017			2016			2016			2016			2016
Calculation of Net Interest Margin and Efficiency Ratio
(A) Interest Income (GAAP)	$	215,759		$	215,013		$	208,149		$	197,064		$	192,231
Taxable-equivalent adjustment:
- Loans	790			666			584			523			509
- Liquidity Management Assets	907			815			963			932			920
- Other Earning Assets	5			17			9			8			6
(B) Interest Income - FTE	$	217,461		$	216,511		$	209,705		$	198,527		$	193,666
(C) Interest Expense (GAAP)	23,179			24,235			23,513			21,794			20,722
(D) Net Interest Income - FTE (B minus C)	$	194,282		$	192,276		$	186,192		$	176,733		$	172,944
(E) Net Interest Income (GAAP) (A minus C)	$	192,580		$	190,778		$	184,636		$	175,270		$	171,509
Net interest margin (GAAP-derived)	3.36		%	3.21		%	3.21		%	3.24		%	3.29		%
Net interest margin - FTE	3.39		%	3.23		%	3.24		%	3.27		%	3.32		%
(F) Non-interest income	$	68,765		$	85,275		$	86,604		$	84,799		$	68,752
(G) Gains (losses) on investment securities, net	(55		)	1,575			3,305			1,440			1,325
(H) Non-interest expense	168,118			180,371			176,615			170,969			153,730
Efficiency ratio (H/(E+F-G))	64.31		%	65.71		%	65.92		%	66.11		%	64.34		%
Efficiency ratio - FTE (H/(D+F-G))	63.90		%	65.36		%	65.54		%	65.73		%	63.96		%
Calculation of Tangible Common Equity ratio (at period end)
Total shareholders’ equity	$	2,764,983		$	2,695,617		$	2,674,474		$	2,623,595		$	2,418,442
(I) Less: Convertible preferred stock	(126,257		)	(126,257		)	(126,257		)	(126,257		)	(126,257		)
Less: Non-convertible preferred stock	(125,000		)	(125,000		)	(125,000		)	(125,000		)	(125,000		)
Less: Intangible assets	(520,028		)	(520,438		)	(506,674		)	(507,916		)	(508,005		)
(J) Total tangible common shareholders’ equity	$	1,993,698		$	1,923,922		$	1,916,543		$	1,864,422		$	1,659,180
Total assets	$	25,778,893		$	25,668,553		$	25,321,759		$	24,420,616		$	23,488,168
Less: Intangible assets	(520,028		)	(520,438		)	(506,674		)	(507,916		)	(508,005		)
(K) Total tangible assets	$	25,258,865		$	25,148,115		$	24,815,085		$	23,912,700		$	22,980,163
Tangible common equity ratio (J/K)	7.9		%	7.7		%	7.7		%	7.8		%	7.2		%
Tangible common equity ratio, assuming full conversion of convertible preferred stock ((J-I)/K)	8.4		%	8.2		%	8.2		%	8.3		%	7.8		%
Calculation of book value per share
Total shareholders’ equity	$	2,764,983		$	2,695,617		$	2,674,474		$	2,623,595		$	2,418,442
Less: Preferred stock	(251,257		)	(251,257		)	(251,257		)	(251,257		)	(251,257		)
(L) Total common equity	$	2,513,726		$	2,444,360		$	2,423,217		$	2,372,338		$	2,167,185
(M) Actual common shares outstanding	52,504			51,881			51,715			51,619			48,519
Book value per common share (L/M)	$	47.88		$	47.12		$	46.86		$	45.96		$	44.67
Tangible common book value per share (J/M)	$	37.97		$	37.08		$	37.06		$	36.12		$	34.20

Calculation of return on average common equity
(N) Net income applicable to common shares	54,750			50,979			49,487			46,413			45,483
Add: After-tax intangible asset amortization	771			716			677			781			812
(O) Tangible net income applicable to common shares	55,521			51,695			50,164			47,194			46,295
Total average shareholders' equity	2,739,050			2,689,876			2,651,684			2,465,732			2,389,770
Less: Average preferred stock	(251,257		)	(251,257		)	(251,257		)	(251,257		)	(251,262		)
(P) Total average common shareholders' equity	2,487,793			2,438,619			2,400,427			2,214,475			2,138,508
Less: Average intangible assets	(520,346		)	(513,017		)	(508,812		)	(507,439		)	(495,594		)
(Q) Total average tangible common shareholders’ equity	1,967,447			1,925,602			1,891,615			1,707,036			1,642,914
Return on average common equity, annualized (N/P)	8.93		%	8.32		%	8.20		%	8.43		%	8.55		%
Return on average tangible common equity, annualized (O/Q)	11.44		%	10.68		%	10.55		%	11.12		%	11.33		%

BUSINESS UNIT SUMMARY

Community Banking

Through its community banking franchise, the Company provides banking and financial services primarily to individuals, small to mid-sized businesses, local governmental units and institutional clients residing primarily in the local areas the Company services. In the first quarter of 2017, profitability within this franchise was primarily driven by increased net interest income due to a higher net interest margin, partially offset by lower revenue from the mortgage banking business. The net interest margin increased in the first quarter of 2017 compared to the fourth quarter of 2016 primarily as a result of higher yields on the commercial (excluding lease loans) and commercial real-estate loan portfolios as well as liquidity management assets, and an improved funding mix related to the Company's interest-bearing liabilities. The increased net interest margin was offset by a $13.6 million decrease in mortgage banking revenue in the first quarter of 2017 compared to the fourth quarter of 2016. The lower revenue was due to originations during the current period decreasing to $722.5 million from $1.2 billion in the fourth quarter of 2016 due to typical seasonality in the first quarter, as well as rising interest rates in the market. The Company's gross commercial and commercial real estate loan pipelines remain strong. Before the impact of scheduled payments and prepayments, at March 31, 2017, gross commercial and commercial real estate loan pipelines totaled $1.5 billion, or $934 million when adjusted for the probability of closing, compared to $1.4 billion, or $895 million when adjusted for the probability of closing, at December 31, 2016.

Specialty Finance

Through its specialty finance unit, the Company offers financing of insurance premiums for businesses and individuals, accounts receivable financing, value-added, out-sourced administrative services, and other specialty finance businesses. In the first quarter of 2017, 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 $1.6 billion during the first quarter of 2017 resulted in a $214 million increase in average balance and $1.4 million increase in interest income attributed to this portfolio. The Company's leasing business continued to grow during the first quarter of 2017, increasing its portfolio of assets, including capital leases, loans and equipment on operating leases, by $64 million since the end of the fourth quarter of 2016. Revenues from the Company's out-sourced administrative services business remained steady, totaling $1.0 million and $1.1 million in the first quarter of 2017 and fourth quarter of 2016, respectively.

Wealth Management

Through its wealth management unit, the Company offers a full range of wealth management services through three separate subsidiaries: trust and investment services, asset management, securities brokerage services and 401(k) and retirement plan services. At March 31, 2017, the Company’s wealth management subsidiaries had approximately $22.9 billion of assets under administration, which includes $2.5 billion of assets owned by the Company and its subsidiary banks, representing a $978 million increase from the $21.9 billion of assets under administration at December 31, 2016.

LOANS

Loan Portfolio Mix and Growth Rates

										% Growth
(Dollars in thousands)	March 31, 2017			December 31, 2016			March 31, 2016			From ⁽¹⁾ December 31, 2016		From March 31, 2016
Balance:
Commercial	$	6,081,489		$	6,005,422		$	4,890,246		5	%	24	%
Commercial real estate	6,261,682			6,196,087			5,737,959			4		9
Home equity	708,258			725,793			774,342			(10	)	(9	)
Residential real estate	720,608			705,221			626,043			9		15
Premium finance receivables - commercial	2,446,946			2,478,581			2,320,987			(5	)	5
Premium finance receivables - life insurance	3,593,563			3,470,027			2,976,934			14		21
Consumer and other	118,512			122,041			119,902			(12	)	(1	)
Total loans, net of unearned income, excluding covered loans	$	19,931,058		$	19,703,172		$	17,446,413		5	%	14	%
Covered loans	52,359			58,145			138,848			(40	)	(62	)
Total loans, net of unearned income	$	19,983,417		$	19,761,317		$	17,585,261		5	%	14	%
Mix:
Commercial	30		%	30		%	28		%
Commercial real estate	31			31			32
Home equity	4			4			4
Residential real estate	4			4			4
Premium finance receivables - commercial	12			12			13
Premium finance receivables - life insurance	18			18			17
Consumer and other	1			1			1
Total loans, net of unearned income, excluding covered loans	100		%	100		%	99		%
Covered loans	—			—			1
Total loans, net of unearned income	100		%	100		%	100		%

(1) Annualized

Commercial and Commercial Real Estate Loan Portfolios

	As of March 31, 2017
			% of Total Balance		Nonaccrual		> 90 Days Past Due and Still Accruing		Allowance For Loan Losses Allocation

(Dollars in thousands)	Balance
Commercial:
Commercial, industrial and other	$	3,891,075	31.5	%	$	12,036	$	100	$	31,693
Franchise	823,734		6.7		323		—		4,675
Mortgage warehouse lines of credit	154,180		1.3		—		—		1,178
Asset-based lending	881,004		7.1		1,378		—		7,262
Leases	320,010		2.6		570		—		1,132
PCI - commercial loans ⁽¹⁾	11,486		0.1		—		1,368		642
Total commercial	$	6,081,489	49.3	%	$	14,307	$	1,468	$	46,582
Commercial Real Estate:
Construction	$	655,333	5.3	%	$	2,408	$	—	$	7,908
Land	105,079		0.8		350		—		3,658
Office	870,666		7.1		3,513		—		5,822
Industrial	792,962		6.4		7,004		—		6,728
Retail	911,786		7.4		589		—		5,981
Multi-family	804,776		6.5		668		—		8,101
Mixed use and other	1,963,744		15.9		6,277		—		14,375
PCI - commercial real estate ⁽¹⁾	157,336		1.3		—		12,559		60
Total commercial real estate	$	6,261,682	50.7	%	$	20,809	$	12,559	$	52,633
Total commercial and commercial real estate	$	12,343,171	100.0	%	$	35,116	$	14,027	$	99,215

Commercial real estate - collateral location by state:
Illinois	$	4,943,266	79.0	%
Wisconsin	670,936		10.7
Total primary markets	$	5,614,202	89.7	%
Indiana	125,233		2.0
Florida	79,554		1.2
Arizona	55,069		0.9
California	41,989		0.7
Other (no individual state greater than 0.7%)	345,635		5.5
Total	$	6,261,682	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)	March 31, 2017			December 31, 2016			March 31, 2016			From ⁽¹⁾ December 31, 2016		From March 31, 2016
Balance:
Non-interest bearing	$	5,790,579		$	5,927,377		$	5,205,410		(9	)%	11	%
NOW and interest bearing demand deposits	2,484,676			2,624,442			2,369,474			(22	)	5
Wealth management deposits ⁽²⁾	2,390,464			2,209,617			1,761,710			33		36
Money market	4,555,752			4,441,811			4,157,083			10		10
Savings	2,287,958			2,180,482			1,766,552			20		30
Time certificates of deposit	4,221,012			4,274,903			3,956,842			(5	)	7
Total deposits	$	21,730,441		$	21,658,632		$	19,217,071		1	%	13	%
Mix:
Non-interest bearing	27		%	27		%	27		%
NOW and interest bearing demand deposits	11			12			12
Wealth management deposits ⁽²⁾	11			10			9
Money market	21			21			22
Savings	11			10			9
Time certificates of deposit	19			20			21
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 Deposit
Maturity/Re-pricing Analysis
As of March 31, 2017

(Dollars in thousands)	CDARs & Brokered Certificates of Deposit ⁽¹⁾		MaxSafe Certificates of Deposit ⁽¹⁾		Variable Rate Certificates of Deposit ⁽²⁾		Other Fixed Rate Certificates of Deposit ⁽¹⁾		Total Time Certificates of Deposit		Weighted- Average Rate of Maturing Time Certificates of Deposit ⁽³⁾
1-3 months	$	43,578	$	47,371	$	132,858	$	673,994	$	897,801	0.62	%
4-6 months	535		30,294		—		597,665		628,494		0.76	%
7-9 months	1,252		19,845		—		701,548		722,645		0.94	%
10-12 months	1,494		19,652		—		709,879		731,025		0.97	%
13-18 months	3,034		14,025		—		797,334		814,393		1.08	%
19-24 months	—		8,905		—		126,543		135,448		0.99	%
24+ months	1,249		20,362		—		269,595		291,206		1.36	%
Total	$	51,142	$	160,454	$	132,858	$	3,876,558	$	4,221,012	0.91	%

(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 first quarter of 2017 compared to the fourth quarter of 2016 (sequential quarters) and first quarter of 2016 (linked quarters), respectively:

	Average Balance for three months ended,									Interest for three months ended,									Yield/Rate for three months ended,
(Dollars in thousands)	March 31, 2017			December 31, 2016			March 31, 2016			March 31, 2017			December 31, 2016			March 31, 2016			March 31, 2017		December 31, 2016		March 31, 2016
Liquidity management assets^(1)(2)(7)	$	3,270,467		$	3,860,616		$	3,300,138		$	17,174		$	16,455		$	19,794		2.13	%	1.70	%	2.41	%
Other earning assets^(2)(3)(7)	25,236			27,608			28,731			183			235			236			2.95		3.37		3.31
Loans, net of unearned income^(2)(4)(7)	19,923,606			19,711,504			17,508,593			199,186			198,861			171,625			4.05		4.01		3.94
Covered loans	56,872			59,827			141,351			918			960			2,011			6.55		6.38		5.72
Total earning assets⁽⁷⁾	$	23,276,181		$	23,659,555		$	20,978,813		$	217,461		$	216,511		$	193,666		3.79	%	3.64	%	3.71	%
Allowance for loan and covered loan losses	(127,425		)	(122,665		)	(112,028		)
Cash and due from banks	229,588			221,892			259,343
Other assets	1,829,004			1,852,278			1,776,785
Total assets	$	25,207,348		$	25,611,060		$	22,902,913

Interest-bearing deposits	$	15,466,670		$	15,567,263		$	13,717,333		$	16,270		$	16,413		$	12,781		0.43	%	0.42	%	0.37	%
Federal Home Loan Bank advances	181,338			388,780			825,104			1,590			2,439			2,886			3.55		2.50		1.41
Other borrowings	255,012			240,174			257,384			1,139			1,074			1,058			1.81		1.78		1.65
Subordinated notes	138,980			138,953			138,870			1,772			1,779			1,777			5.10		5.12		5.12
Junior subordinated debentures	253,566			253,566			257,687			2,408			2,530			2,220			3.80		3.90		3.41
Total interest-bearing liabilities	$	16,295,566		$	16,588,736		$	15,196,378		$	23,179		$	24,235		$	20,722		0.58	%	0.58	%	0.55	%
Non-interest bearing deposits	5,787,034			5,902,439			4,939,746
Other liabilities	385,698			430,009			377,019
Equity	2,739,050			2,689,876			2,389,770
Total liabilities and shareholders’ equity	$	25,207,348		$	25,611,060		$	22,902,913
Interest rate spread⁽⁵⁾⁽⁷⁾																			3.21	%	3.06	%	3.16	%
Less: Fully tax-equivalent adjustment										(1,702		)	(1,498		)	(1,435		)	(0.03	)	(0.02	)	(0.03	)
Net free funds/ contribution⁽⁶⁾	$	6,980,615		$	7,070,819		$	5,782,435											0.18		0.17		0.16
Net interest income/ margin⁽⁷⁾ (GAAP)										$	192,580		$	190,778		$	171,509		3.36	%	3.21	%	3.29	%
Fully tax-equivalent adjustment										1,702			1,498			1,435			0.03		0.02		0.03
Net interest income/ margin - FTE ⁽⁷⁾										$	194,282		$	192,276		$	172,944		3.39	%	3.23	%	3.32	%

(1) Liquidity management assets include available-for-sale and held-to-maturity securities, interest earning deposits with banks, federal funds sold and securities purchased under resale agreements.

(2) Interest income on tax-advantaged loans, trading securities and investment securities reflects a tax-equivalent adjustment based on a marginal federal corporate tax rate of 35%. The total adjustments for the three months ended March 31, 2017, December 31, 2016 and March 31, 2016 were $1.7 million, $1.5 million and $1.4 million, respectively.

(3) Other earning assets include brokerage customer receivables and trading account securities.

(4) Loans, net of unearned income, include loans held-for-sale and non-accrual loans.

(5) Interest rate spread is the difference between the yield earned on earning assets and the rate paid on interest-bearing liabilities.

(6) Net free funds are the difference between total average earning assets and total average interest-bearing liabilities. The estimated contribution to net interest margin from net free funds is calculated using the rate paid for total interest-bearing liabilities.

(7) See “Supplemental Financial Measures/Ratios” for additional information on this performance ratio.

For the first quarter of 2017, net interest income totaled $192.6 million, an increase of $1.8 million as compared to the fourth quarter of 2016 and an increase of $21.1 million as compared to the first quarter of 2016. Net interest margin was 3.36% (3.39% on a fully tax-equivalent basis) during the first quarter of 2017 compared to 3.21% (3.23% on a fully tax-equivalent basis) during the fourth quarter of 2016 and 3.29% (3.32% on a fully tax-equivalent basis) during the first quarter of 2016.

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 March 31, 2017, December 31, 2016 and March 31, 2016 is as follows:


Static Shock Scenario	+200 Basis Points		+100 Basis Points		-100 Basis Points
March 31, 2017	17.7	%	9.3	%	(13.2	)%
December 31, 2016	18.5	%	9.6	%	(13.2	)%
March 31, 2016	16.4	%	8.9	%	(8.7	)%

Ramp Scenario	+200 Basis Points		+100 Basis Points		-100 Basis Points
March 31, 2017	7.3	%	3.9	%	(4.8	)%
December 31, 2016	7.6	%	4.0	%	(5.0	)%
March 31, 2016	7.5	%	3.7	%	(3.7	)%

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, excluding covered loans, at March 31, 2017 by date at which the loans reprice or mature, and the type of rate exposure:

As of March 31, 2017

One year or less

From one to five years

Over five years

(Dollars in thousands)

Total

Commercial

Fixed rate

$

103,508

$

700,701

$

477,141

$

1,281,350

Variable rate

4,788,750

9,426

1,963

4,800,139

Total commercial

$

4,892,258

$

710,127

$

479,104

$

6,081,489

Commercial real estate

Fixed rate

386,082

1,706,877

272,040

2,364,999

Variable rate

3,862,571

32,513

1,599

3,896,683

Total commercial real estate

$

4,248,653

$

1,739,390

$

273,639

$

6,261,682

Home Equity

Fixed rate

4,803

3,284

66,264

74,351

Variable rate

633,439

75

393

633,907

Total home equity

$

638,242

$

3,359

$

66,657

$

708,258

Residential real estate

Fixed rate

47,885

41,106

140,076

229,067

Variable rate

60,869

177,311

253,361

491,541

Total residential real estate

$

108,754

$

218,417

$

393,437

$

720,608

Premium finance receivables - commercial

Fixed rate

2,364,859

82,087

—

2,446,946

Variable rate

—

Total premium finance receivables - commercial

$

2,364,859

$

82,087

$

—

$

2,446,946

Premium finance receivables - life insurance

Fixed rate

14,387

36,404

1,377

52,168

Variable rate

3,541,395

—

3,541,395

Total premium finance receivables - life insurance

$

3,555,782

$

36,404

$

1,377

$

3,593,563

Consumer and other

Fixed rate

59,400

12,480

3,321

75,201

Variable rate

43,311

—

43,311

Total consumer and other

$

102,711

$

12,480

$

3,321

$

118,512

Total per category

Fixed rate

2,980,924

2,582,939

960,219

6,524,082

Variable rate

12,930,335

219,325

257,316

13,406,976

Total loans, net of unearned income, excluding covered loans

$

15,911,259

$

2,802,264

$

1,217,535

$

19,931,058

Variable Rate Loan Pricing by Index:

Prime

$

2,999,998

One- month LIBOR

6,104,386

Three- month LIBOR

522,109

Twelve- month LIBOR

3,341,513

Other

438,970

Total variable rate

$

13,406,976

NON-INTEREST INCOME

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

	Three Months Ended
	March 31,			December 31,			March 31,			Q1 2017 compared to Q4 2016					Q1 2017 compared to Q1 2016
(Dollars in thousands)	2017			2016			2016			$ Change			% Change		$ Change			% Change
Brokerage	$	6,220		$	6,408		$	6,057		$	(188	)	(3	)%	$	163		3	%
Trust and asset management	13,928			13,104			12,263			824			6		1,665			14
Total wealth management	20,148			19,512			18,320			636			3		1,828			10
Mortgage banking	21,938			35,489			21,735			(13,551		)	(38	)	203			1
Service charges on deposit accounts	8,265			8,054			7,406			211			3		859			12
(Losses) gains on investment securities, net	(55		)	1,575			1,325			(1,630		)	NM		(1,380		)	NM
Fees from covered call options	759			1,476			1,712			(717		)	(49	)	(953		)	(56	)
Trading (losses) gains, net	(320		)	1,007			(168		)	(1,327		)	NM		(152		)	90
Operating lease income, net	5,782			5,171			2,806			611			12		2,976			NM
Other:
Interest rate swap fees	1,433			2,870			4,438			(1,437		)	(50	)	(3,005		)	(68	)
BOLI	985			981			472			4			—		513			NM
Administrative services	1,024			1,115			1,069			(91		)	(8	)	(45		)	(4	)
(Loss) gain on extinguishment of debt	—			(717		)	4,305			717			NM		(4,305		)	NM
Early pay-offs of leases	1,211			728			—			483			66		1,211			NM
Miscellaneous	7,595			8,014			5,332			(419		)	(5	)	2,263			42
Total Other	12,248			12,991			15,616			(743		)	(6	)	(3,368		)	(22	)
Total Non-Interest Income	$	68,765		$	85,275		$	68,752		$	(16,510	)	(19	)%	$	13		—	%

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 fourth quarter of 2016 and first quarter of 2016 is primarily attributable to growth in assets under management due to new customers. 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 decrease in mortgage banking revenue in the current quarter as compared to the most recent quarter resulted primarily from lower origination volumes in the current quarter. The lower origination volume was a result of typical seasonality in the first quarter and a higher interest rate environment. Mortgage loans originated or purchased for sale decreased during the current quarter, totaling $722.5 million in the first quarter of 2017 as compared to $1.2 billion in the fourth quarter of 2016 and $736.6 million in the first quarter of 2016. 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 MSRs as the Company does not hedge this change in fair value. The Company typically originates mortgage loans held-for-sale with associated MSRs either retained or released. 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
(Dollars in thousands)	March 31, 2017			December 31, 2016			March 31, 2016
Retail originations	$	624,971		1,042,145			$	704,990
Correspondent originations	97,496			135,726			31,658
(A) Total originations	$	722,467		1,177,871			$	736,648

Purchases as a percentage of originations	66		%	52		%	56		%
Refinances as a percentage of originations	34			48			44
Total	100		%	100		%	100		%

(B) Production revenue ⁽¹⁾	$	17,677		$	28,320		$	19,930
Production margin (B / A)	2.45		%	2.40		%	2.71		%

Loans serviced for others (C)	$	1,972,592		$	1,784,760		$	1,044,745
MSRs, at fair value (D)	21,596			19,103			10,128
Percentage of mortgage servicing rights to loans serviced for others (D/C)	1.09		%	1.07		%	0.97		%

(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 effectively 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 compared to the fourth quarter of 2016 primarily as a result of selling call options against a smaller value of underlying securities resulting in lower premiums received by the Company. There were no outstanding call option contracts at March 31, 2017, December 31, 2016 and March 31, 2016.

The Company recognized $320,000 of trading losses in the first quarter of 2017 compared to trading gains of $1.0 million in the fourth quarter of 2016 and trading losses of $168,000 in the first quarter of 2016. Trading gains and losses recorded by the Company primarily result from fair value adjustments related to interest rate derivatives not designated as hedges.

The increase in operating lease income in the current quarter compared to the prior period quarters is primarily related to growth in business from the Company's leasing divisions during the first quarter of 2017.

The decrease in other non-interest income in the current quarter as compared to the fourth quarter of 2016 is primarily due to lower swap fee revenues resulting from interest rate hedging transactions related to both customer-based trades and the related matched trades with inter-bank dealer counterparties, partially offset by the loss on extinguishment of debt recognized in previous quarter.

NON-INTEREST EXPENSE

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

	Three Months Ended
	March 31,		December 31,		March 31,		Q1 2017 compared to Q4 2016					Q1 2017 compared to Q1 2016
(Dollars in thousands)	2017		2016		2016		$ Change			% Change		$ Change			% Change
Salaries and employee benefits:
Salaries	$	55,008	$	53,108	$	50,282	$	1,900		4	%	$	4,726		9	%
Commissions and incentive compensation	26,643		35,744		26,375		(9,101		)	(25	)	268			1
Benefits	17,665		15,883		19,154		1,782			11		(1,489		)	(8	)
Total salaries and employee benefits	99,316		104,735		95,811		(5,419		)	(5	)	3,505			4
Equipment	9,002		9,532		8,767		(530		)	(6	)	235			3
Operating lease equipment depreciation	4,636		4,219		2,050		417			10		2,586			NM
Occupancy, net	13,101		14,254		11,948		(1,153		)	(8	)	1,153			10
Data processing	7,925		7,687		6,519		238			3		1,406			22
Advertising and marketing	5,150		6,691		3,779		(1,541		)	(23	)	1,371			36
Professional fees	4,660		5,425		4,059		(765		)	(14	)	601			15
Amortization of other intangible assets	1,164		1,158		1,298		6			1		(134		)	(10	)
FDIC insurance	4,156		4,726		3,613		(570		)	(12	)	543			15
OREO expense, net	1,665		1,843		560		(178		)	(10	)	1,105			NM
Other:
Commissions - 3rd party brokers	1,098		1,165		1,310		(67		)	(6	)	(212		)	(16	)
Postage	1,442		1,955		1,302		(513		)	(26	)	140			11
Miscellaneous	14,803		16,981		12,714		(2,178		)	(13	)	2,089			16
Total other	17,343		20,101		15,326		(2,758		)	(14	)	2,017			13
Total Non-Interest Expense	$	168,118	$	180,371	$	153,730	$	(12,253	)	(7	)%	$	14,388		9	%

NM - Not Meaningful

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

Salaries and employee benefits expense decreased in the current quarter compared to the fourth quarter of 2016 primarily as a result of lower incentive compensation on variable pay based arrangements (including mortgage banking commissions), partially offset by higher salaries and benefits.

Occupancy expense decreased in the current quarter compared to the fourth quarter of 2016 due to lower net rent expense on leased properties as well as lower maintenance and repair costs. Occupancy expense includes depreciation on premises, real estate taxes, utilities and maintenance of premises, as well as net rent expense for lease premises.

The decrease in advertising and marketing expenses during the current quarter compared to the fourth quarter of 2016 is primarily related to the lower expenses for mass market media promotions and printing costs. 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 type of marketing programs utilized which are determined based on the market area, targeted audience, competition and various other factors.

The decrease in miscellaneous expenses during the current quarter compared to the fourth quarter of 2016 is primarily a result of lower travel and entertainment expenses. Miscellaneous expense includes ATM expenses, correspondent bank charges, directors' fees, telephone, travel and entertainment, corporate insurance, dues and subscriptions, problem loan expenses, operating losses and lending origination costs that are not deferred.

INCOME TAXES

The Company recorded income tax expense of $29.6 million in the first quarter of 2017 compared to $33.7 million in the fourth quarter of 2016. The effective tax rates were 33.67% in first quarter of 2017 and 38.18% in the fourth quarter of 2016. The lower effective tax rate in the first quarter of 2017 was primarily a result of recording $3.4 million of excess tax benefits related to the adoption of new accounting rules over income taxes attributed to share-based compensation that became effective on January 1, 2017. These 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
	March 31,			December 31,			March 31,
(Dollars in thousands)	2017			2016			2016
Allowance for loan losses at beginning of period	$	122,291		$	117,693		$	105,400
Provision for credit losses	5,316			7,357			8,423
Other adjustments	(56		)	33			(78		)
Reclassification (to) from allowance for unfunded lending-related commitments	(138		)	(25		)	(81		)
Charge-offs:
Commercial	641			3,054			671
Commercial real estate	261			375			671
Home equity	625			326			1,052
Residential real estate	329			410			493
Premium finance receivables - commercial	1,427			1,843			2,480
Premium finance receivables - life insurance	—			—			—
Consumer and other	134			205			107
Total charge-offs	3,417			6,213			5,474
Recoveries:
Commercial	273			668			629
Commercial real estate	554			1,916			369
Home equity	65			300			48
Residential real estate	178			21			112
Premium finance receivables - commercial	612			498			787
Premium finance receivables - life insurance	—			—			—
Consumer and other	141			43			36
Total recoveries	1,823			3,446			1,981
Net charge-offs	(1,594		)	(2,767		)	(3,493		)
Allowance for loan losses at period end	$	125,819		$	122,291		$	110,171
Allowance for unfunded lending-related commitments at period end	1,811			1,673			1,030
Allowance for credit losses at period end	$	127,630		$	123,964		$	111,201
Annualized net charge-offs (recoveries) by category as a percentage of its own respective category’s average:
Commercial	0.03		%	0.16		%	0.00		%
Commercial real estate	(0.02		)	(0.10		)	0.02
Home equity	0.32			0.01			0.52
Residential real estate	0.06			0.13			0.17
Premium finance receivables - commercial	0.13			0.22			0.29
Premium finance receivables - life insurance	0.00			0.00			0.00
Consumer and other	(0.02		)	0.47			0.20
Total loans, net of unearned income, excluding covered loans	0.03		%	0.06		%	0.08		%
Net charge-offs as a percentage of the provision for credit losses	29.98		%	37.61		%	41.47		%
Loans at period-end, excluding covered loans	$	19,931,058		$	19,703,172		$	17,446,413
Allowance for loan losses as a percentage of loans at period end	0.63		%	0.62		%	0.63		%
Allowance for credit losses as a percentage of loans at period end	0.64		%	0.63		%	0.64		%

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 first quarter of 2017 totaled three basis points on an annualized basis compared to six basis points on an annualized basis in the fourth quarter of 2016 and eight basis points on an annualized basis in the first quarter of 2016. Net charge-offs totaled $1.6 million in the first quarter of 2017, a $1.2 million decrease from $2.8 million in the fourth quarter of 2016 and a $1.9 million decrease from $3.5 million in the first quarter of 2016. The provision for credit losses, excluding the provision for covered loan losses, totaled $5.3 million for the first quarter of 2017 compared to $7.4 million for the fourth quarter of 2016 and $8.4 million for the first quarter of 2016.

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 provides a provision for covered loan losses on covered loans and maintains an allowance for covered loan losses on covered loans. Please see “Covered Assets” later in this document for more detail.

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

	Three Months Ended
	March 31,			December 31,			March 31,
(Dollars in thousands)	2017			2016			2016
Provision for loan losses	$	5,178		$	7,332		$	8,342
Provision for unfunded lending-related commitments	138			25			81
Provision for covered loan losses	(107		)	(7		)	(389		)
Provision for credit losses	$	5,209		$	7,350		$	8,034

	Period End
	March 31,			December 31,			March 31,
	2017			2016			2016
Allowance for loan losses	$	125,819		$	122,291		$	110,171
Allowance for unfunded lending-related commitments	1,811			1,673			1,030
Allowance for covered loan losses	1,319			1,322			2,507
Allowance for credit losses	$	128,949		$	125,286		$	113,708

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 March 31, 2017 and December 31, 2016.

	As of March 31, 2017
	Recorded		Calculated		As a percentage of its own respective
(Dollars in thousands)	Investment		Allowance		category’s balance
Commercial:⁽¹⁾
Commercial and industrial	$	3,396,191	$	29,088	0.86	%
Asset-based lending	875,403		7,262		0.83
Tax exempt	315,487		2,206		0.70
Leases	318,943		1,132		0.35
Commercial real estate:⁽¹⁾
Residential construction	46,956		1,091		2.32
Commercial construction	607,507		6,817		1.12
Land	100,056		3,655		3.65
Office	817,239		5,810		0.71
Industrial	742,844		6,711		0.90
Retail	863,804		5,963		0.69
Multi-family	765,933		8,082		1.06
Mixed use and other	1,835,745		14,302		0.78
Home equity⁽¹⁾	639,399		12,194		1.91
Residential real estate⁽¹⁾	678,978		5,461		0.80
Total core loan portfolio	$	12,004,485	$	109,774	0.91	%
Commercial:
Franchise	$	560,532	$	4,595	0.82	%
Mortgage warehouse lines of credit	154,180		1,178		0.76
Community Advantage - homeowner associations	145,233		363		0.25
Aircraft	3,250		17		0.52
Purchased non-covered commercial loans ⁽²⁾	312,270		741		0.24
Commercial real estate:
Purchased non-covered commercial real estate ⁽²⁾	481,598		202		0.04
Purchased non-covered home equity ⁽²⁾	68,859		9		0.01
Purchased non-covered residential real estate ⁽²⁾	41,630		69		0.17
Premium finance receivables
U.S. commercial insurance loans	2,167,524		5,389		0.25
Canada commercial insurance loans ⁽²⁾	279,422		572		0.20
Life insurance loans ⁽¹⁾	3,352,857		1,598		0.05
Purchased life insurance loans ⁽²⁾	240,706		—		—
Consumer and other ⁽¹⁾	115,710		1,310		1.13
Purchased non-covered consumer and other ⁽²⁾	2,802		2		0.07
Total consumer, niche and purchased loan portfolio	$	7,926,573	$	16,045	0.20	%
Total loans, net of unearned income, excluding covered loans	$	19,931,058	$	125,819	0.63	%
Non-accretable credit discounts on purchased loans reported in accordance with ASC 310-30, excluding covered loans			$	8,315
Total allowance for loan losses and non-accretable credit discounts on purchased loans, excluding covered loans			$	134,134	0.67	%

(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 December 31, 2016
	Recorded		Calculated		As a percentage of its own respective
(Dollars in thousands)	Investment		Allowance		category’s balance
Commercial:⁽¹⁾
Commercial and industrial	$	3,234,629	$	27,112	0.84	%
Asset-based lending	867,697		6,859		0.79
Tax exempt	327,694		2,299		0.70
Leases	294,124		858		0.29
Commercial real estate:⁽¹⁾
Residential construction	46,235		1,045		2.26
Commercial construction	563,001		6,259		1.11
Land	99,194		3,677		3.71
Office	808,322		5,757		0.71
Industrial	716,480		6,643		0.93
Retail	855,787		5,928		0.69
Multi-family	766,146		8,052		1.05
Mixed use and other	1,815,573		13,867		0.76
Home equity⁽¹⁾	649,129		11,767		1.81
Residential real estate⁽¹⁾	658,487		5,634		0.86
Total core loan portfolio	$	11,702,498	$	105,757	0.90	%
Commercial:
Franchise	$	565,588	$	4,744	0.84	%
Mortgage warehouse lines of credit	204,225		1,548		0.76
Community Advantage - homeowner associations	145,717		365		0.25
Aircraft	3,356		42		1.25
Purchased non-covered commercial loans ⁽²⁾	362,392		666		0.18
Commercial real estate:
Purchased non-covered commercial real estate ⁽²⁾	525,349		194		0.04
Purchased non-covered home equity ⁽²⁾	76,664		7		0.01
Purchased non-covered residential real estate ⁽²⁾	46,734		80		0.17
Premium finance receivables
U.S. commercial insurance loans	2,170,844		5,521		0.25
Canada commercial insurance loans ⁽²⁾	307,737		604		0.20
Life insurance loans ⁽¹⁾	3,220,370		1,500		0.05
Purchased life insurance loans ⁽²⁾	249,657		—		—
Consumer and other ⁽¹⁾	119,073		1,261		1.06
Purchased non-covered consumer and other ⁽²⁾	2,968		2		0.07
Total consumer, niche and purchased loan portfolio	$	8,000,674	$	16,534	0.21	%
Total loans, net of unearned income, excluding covered loans	$	19,703,172	$	122,291	0.62	%
Non-accretable credit discounts on purchased loans reported in accordance with ASC 310-30, excluding covered loans			$	12,324
Total allowance for loan losses and non-accretable credit discounts on purchased loans, excluding covered loans			$	134,615	0.68	%

(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 March 31, 2017 and December 31, 2016.

The increase in the allowance for loan losses to core loans in the first quarter of 2017 compared to the fourth quarter of 2016 was primarily attributable to higher ASC 310 reserves (specific reserves) on the core portfolio as of March 31, 2017.

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. For analysis purposes, the Company has combined the non-accretable credit discounts recorded on purchased loans with the total allowance for loan losses in the previous tables to present the total credit reserves available on its loan portfolio. The total allowance for loan losses and non-accretable credit discounts on purchased loans was 0.67% of the total loan portfolio as of March 31, 2017 and 0.68% of the total loan portfolio as of December 31, 2016.

The tables below show the aging of the Company’s loan portfolio at March 31, 2017 and December 31, 2016:

90+ days

60-89

30-59

As of March 31, 2017

and still

days past

(Dollars in thousands)

Nonaccrual

accruing

due

Current

Total Loans

Loan Balances:

Commercial ⁽¹⁾

$

14,307

$

1,468

$

19

$

39,440

$

6,026,255

$

6,081,489

Commercial real estate ⁽¹⁾

20,809

12,559

5,426

56,712

6,166,176

6,261,682

Home equity

11,722

—

430

4,884

691,222

708,258

Residential real estate ⁽¹⁾

11,943

900

3,410

5,262

699,093

720,608

Premium finance receivables - commercial

12,629

4,991

6,383

23,775

2,399,168

2,446,946

Premium finance receivables - life insurance ⁽¹⁾

—

2,024

2,535

32,208

3,556,796

3,593,563

Consumer and other ⁽¹⁾

350

167

323

543

117,129

118,512

Total loans, net of unearned income, excluding covered loans

$

71,760

$

22,109

$

18,526

$

162,824

$

19,655,839

$

19,931,058

Covered loans

1,592

2,808

268

1,570

46,121

52,359

Total loans, net of unearned income

$

73,352

$

24,917

$

18,794

$

164,394

$

19,701,960

$

19,983,417

As of March 31, 2017

Nonaccrual

90+ days
and still
accruing

60-89
days past
due

30-59
days past
due

Current

Total Loans

Aging as a % of Loan Balance

Commercial ⁽¹⁾

0.2

%

—

%

—

%

0.6

%

99.2

%

100.0

%

Commercial real estate ⁽¹⁾

0.3

0.2

0.1

0.9

98.5

100.0

Home equity

1.7

—

0.1

0.7

97.5

100.0

Residential real estate ⁽¹⁾

1.7

0.1

0.5

0.7

97.0

100.0

Premium finance receivables - commercial

0.5

0.2

0.3

1.0

98.0

100.0

Premium finance receivables - life insurance ⁽¹⁾

—

0.1

0.9

98.9

100.0

Consumer and other ⁽¹⁾

0.3

0.1

0.3

0.5

98.8

100.0

Total loans, net of unearned income, excluding covered loans

0.4

%

0.1

%

0.1

%

0.8

%

98.6

%

100.0

%

Covered loans

3.0

5.4

0.5

3.0

88.1

100.0

Total loans, net of unearned income

0.4

%

0.1

%

0.1

%

0.8

%

98.6

%

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 December 31, 2016			and still		days past		days past
(Dollars in thousands)	Nonaccrual		accruing		due		due		Current		Total Loans
Loan Balances:
Commercial ⁽¹⁾	$	15,875	$	1,863	$	2,576	$	17,640	$	5,967,468	$	6,005,422
Commercial real estate ⁽¹⁾	21,924		16,188		15,253		31,723		6,110,999		6,196,087
Home equity	9,761		—		1,630		6,515		707,887		725,793
Residential real estate ⁽¹⁾	12,749		1,309		936		8,271		681,956		705,221
Premium finance receivables - commercial	14,709		7,962		5,646		14,580		2,435,684		2,478,581
Premium finance receivables - life insurance ⁽¹⁾	—		3,717		17,514		16,204		3,432,592		3,470,027
Consumer and other ⁽¹⁾	439		207		100		887		120,408		122,041
Total loans, net of unearned income, excluding covered loans	$	75,457	$	31,246	$	43,655	$	95,820	$	19,456,994	$	19,703,172
Covered loans	2,121		2,492		225		1,553		51,754		58,145
Total loans, net of unearned income	$	77,578	$	33,738	$	43,880	$	97,373	$	19,508,748	$	19,761,317

As of December 31, 2016	Nonaccrual		90+ days and still accruing		60-89 days past due		30-59 days past due		Current		Total Loans
Aging as a % of Loan Balance:
Commercial ⁽¹⁾	0.3	%	—	%	—	%	0.3	%	99.4	%	100.0	%
Commercial real estate ⁽¹⁾	0.4		0.3		0.2		0.5		98.6		100.0
Home equity	1.3		—		0.2		0.9		97.6		100.0
Residential real estate ⁽¹⁾	1.8		0.2		0.1		1.2		96.7		100.0
Premium finance receivables - commercial	0.6		0.3		0.2		0.6		98.3		100.0
Premium finance receivables - life insurance ⁽¹⁾	—		0.1		0.5		0.5		98.9		100.0
Consumer and other ⁽¹⁾	0.4		0.2		0.1		0.7		98.6		100.0
Total loans, net of unearned income, excluding covered loans	0.4	%	0.2	%	0.2	%	0.5	%	98.7	%	100.0	%
Covered loans	3.6		4.3		0.4		2.7		89.0		100.0
Total loans, net of unearned income	0.4	%	0.2	%	0.2	%	0.5	%	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 March 31, 2017, $18.5 million of all loans, excluding covered loans, or 0.1%, were 60 to 89 days past due and $162.8 million, or 0.8%, were 30 to 59 days (or one payment) past due. As of December 31, 2016, $43.7 million of all loans, excluding covered loans, or 0.2%, were 60 to 89 days past due and $95.8 million, or 0.5%, 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.

The Company’s home equity and residential loan portfolios continue to exhibit low delinquency ratios. Home equity loans at March 31, 2017 that are current with regard to the contractual terms of the loan agreement represent 97.5% of the total home equity portfolio. Residential real estate loans at March 31, 2017 that are current with regards to the contractual terms of the loan agreements comprise 97.0% 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.

	March 31,			December 31,			March 31,
(Dollars in thousands)	2017			2016			2016
Loans past due greater than 90 days and still accruing⁽¹⁾:
Commercial	$	100		$	174		$	338
Commercial real estate	—			—			1,260
Home equity	—			—			—
Residential real estate	—			—			—
Premium finance receivables - commercial	4,991			7,962			9,548
Premium finance receivables - life insurance	2,024			3,717			1,641
Consumer and other	104			144			180
Total loans past due greater than 90 days and still accruing	7,219			11,997			12,967
Non-accrual loans ⁽²⁾:
Commercial	14,307			15,875			12,373
Commercial real estate	20,809			21,924			26,996
Home equity	11,722			9,761			9,365
Residential real estate	11,943			12,749			11,964
Premium finance receivables - commercial	12,629			14,709			15,350
Premium finance receivables - life insurance	—			—			—
Consumer and other	350			439			484
Total non-accrual loans	71,760			75,457			76,532
Total non-performing loans:
Commercial	14,407			16,049			12,711
Commercial real estate	20,809			21,924			28,256
Home equity	11,722			9,761			9,365
Residential real estate	11,943			12,749			11,964
Premium finance receivables - commercial	17,620			22,671			24,898
Premium finance receivables - life insurance	2,024			3,717			1,641
Consumer and other	454			583			664
Total non-performing loans	$	78,979		$	87,454		$	89,499
Other real estate owned	17,090			17,699			24,022
Other real estate owned - from acquisitions	22,774			22,583			16,980
Other repossessed assets	544			581			171
Total non-performing assets	$	119,387		$	128,317		$	130,672
TDRs performing under the contractual terms of the loan agreement	$	28,392		$	29,911		$	34,949
Total non-performing loans by category as a percent of its own respective category’s period-end balance:
Commercial	0.24		%	0.27		%	0.26		%
Commercial real estate	0.33			0.35			0.49
Home equity	1.66			1.34			1.21
Residential real estate	1.66			1.81			1.91
Premium finance receivables - commercial	0.72			0.91			1.07
Premium finance receivables - life insurance	0.06			0.11			0.06
Consumer and other	0.38			0.48			0.55
Total loans, net of unearned income	0.40		%	0.44		%	0.51		%
Total non-performing assets as a percentage of total assets	0.46		%	0.50		%	0.56		%
Allowance for loan losses as a percentage of total non-performing loans	159.31		%	139.83		%	123.10		%

(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 $11.3 million, $11.8 million and $17.6 million as of March 31, 2017, December 31, 2016 and March 31, 2016, respectively.

The ratio of non-performing assets to total assets was 0.46% as of March 31, 2017, compared to 0.50% at December 31, 2016, and 0.56% at March 31, 2016. Non-performing assets, excluding covered assets and non-covered PCI loans, totaled $119.4 million at March 31, 2017, compared to $128.3 million at December 31, 2016 and $130.7 million at March 31, 2016. Non-performing loans, excluding covered loans and non-covered PCI loans, totaled $79.0 million, or 0.40% of total loans, at March 31, 2017 compared to $87.5 million, or 0.44% of total loans, at December 31, 2016 and $89.5 million, or 0.51% of total loans, at March 31, 2016. The decrease in non-performing loans, excluding covered loans and non-covered PCI loans, compared to December 31, 2016 is primarily the result of a $5.1 million decrease in the commercial premium finance receivable portfolio, a $1.7 million decrease in the life premium finance receivable portfolio and a $1.6 million decrease in the commercial portfolio, partially offset by a $2.0 million increase in the home equity portfolio. OREO, excluding covered OREO, of $39.9 million at March 31, 2017 decreased $418,000 compared to $40.3 million at December 31, 2016 and decreased $1.1 million compared to $41.0 million at March 31, 2016.

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, for the periods presented:

	Three Months Ended
	March 31,			December 31,			March 31,
(Dollars in thousands)	2017			2016			2016
Balance at beginning of period	$	87,454		$	83,128		$	84,057
Additions, net	8,609			10,969			12,166
Return to performing status	(1,592		)	(150		)	(2,006		)
Payments received	(5,614		)	(6,623		)	(3,308		)
Transfer to OREO and other repossessed assets	(1,661		)	(878		)	(2,080		)
Charge-offs	(1,280		)	(3,494		)	(533		)
Net change for niche loans ⁽¹⁾	(6,937		)	4,502			1,203
Balance at end of period	$	78,979		$	87,454		$	89,499

(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:

	March 31,			December 31,			March 31,
(Dollars in thousands)	2017			2016			2016
Accruing TDRs:
Commercial	$	4,607		$	4,643		$	5,143
Commercial real estate	18,923			19,993			25,548
Residential real estate and other	4,862			5,275			4,258
Total accrual	$	28,392		$	29,911		$	34,949
Non-accrual TDRs: ⁽¹⁾
Commercial	$	1,424		$	1,487		$	82
Commercial real estate	7,338			8,153			14,340
Residential real estate and other	2,515			2,157			3,184
Total non-accrual	$	11,277		$	11,797		$	17,606
Total TDRs:
Commercial	$	6,031		$	6,130		$	5,225
Commercial real estate	26,261			28,146			39,888
Residential real estate and other	7,377			7,432			7,442
Total TDRs	$	39,669		$	41,708		$	52,555
Weighted-average contractual interest rate of TDRs	4.37		%	4.33		%	4.35		%

(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 March 31, 2017, December 31, 2016 and March 31, 2016, and shows the activity for the respective period and the balance for each property type:

	Three Months Ended
	March 31,			December 31,			March 31,
(Dollars in thousands)	2017			2016			2016
Balance at beginning of period	$	40,282		$	35,050		$	43,945
Disposals/resolved	(2,644		)	(5,850		)	(6,766		)
Transfers in at fair value, less costs to sell	2,268			667			3,291
Transfers in from covered OREO subsequent to loss share expiration	760			4,213			—
Additions from acquisition	—			7,230			1,064
Fair value adjustments	(802		)	(1,028		)	(532		)
Balance at end of period	$	39,864		$	40,282		$	41,002

	Period End
	March 31,			December 31,			March 31,
Balance by Property Type	2017			2016			2016
Residential real estate	$	7,597		$	8,063		$	11,006
Residential real estate development	1,240			1,349			2,320
Commercial real estate	31,027			30,870			27,676
Total	$	39,864		$	40,282		$	41,002

Items Impacting Comparative Financial Results:

Acquisitions

On February 14, 2017, the Company acquired certain assets and assumed certain liabilities of the mortgage banking business of AHM. AHM is located in Montana's Flathead Valley and originated approximately $55 million of residential mortgage loans in 2016.

On November 18, 2016, the Company completed its acquisition of First Community Financial Corporation ("FCFC"). FCFC was the parent company of First Community Bank. Through this transaction, the Company acquired First Community Bank's two banking locations in Elgin, Illinois, approximately $187 million in assets and approximately $150 million in deposits.

On August 19, 2016, the Company, through its wholly-owned subsidiary Lake Forest Bank & Trust Company, completed its acquisition of approximately $561 million in select performing loans and related relationships from an affiliate of GE Capital Franchise Finance. The loans are to franchise operators (primarily quick service restaurant concepts) in the Midwest and in the Western portion of the United States.

On March 31, 2016, the Company completed its acquisition of Generations Bancorp. Inc. ("Generations"). Generations was the parent company of Foundations Bank ("Foundations"). Through this transaction, the Company acquired Foundations' banking location in Pewaukee, Wisconsin, approximately $134 million in assets and approximately $100 million in deposits.

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, 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 Algonquin, Aurora, Bloomingdale, Buffalo Grove, Cary, Clarendon Hills, Crete, Deerfield, Des Plaines, Downers Grove, Elgin, Elk Grove Village, Elmhurst, 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, 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, Menomenee Falls, Milwaukee, Monroe, Pewaukee, Sharon, Wales, Walworth and Wind Lake, Wisconsin and Dyer, Indiana.

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

First Insurance Funding Corporation, one of the largest insurance premium finance companies operating in the United States, serves commercial and life insurance loan customers throughout the country.
First Insurance Funding of Canada serves commercial insurance loan customers throughout Canada.
Tricom, Inc. of Milwaukee provides high-yielding, short-term accounts receivable financing and value-added out-sourced administrative services, such as data processing of payrolls, billing and cash management services, to temporary staffing service clients located throughout the United States.
Wintrust Mortgage, a division of Barrington Bank & Trust Company, engages primarily in the origination and purchase of residential mortgages for sale into the secondary market through origination offices located throughout the United States. Loans are also originated nationwide through relationships with wholesale and correspondent offices.
Wayne Hummer Investments, LLC is a broker-dealer providing a full range of private client and brokerage services to clients and correspondent banks located primarily in the Midwest.
Great Lakes Advisors LLC provides money management services and advisory services to individual accounts.
The Chicago Trust Company, a trust subsidiary, allows Wintrust to service customers’ trust and investment needs at each banking location.
Wintrust Asset Finance which offers direct leasing opportunities.

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,” “point,” “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 2016 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:

negative economic conditions that adversely affect the economy, housing prices, the job market and other factors that may affect the Company’s liquidity and the performance of its loan portfolios, particularly in the markets in which it operates;
the extent of defaults and losses on the Company’s loan portfolio, which may require further increases in its allowance for credit losses;
estimates of fair value of certain of the Company’s assets and liabilities, which could change in value significantly from period to period;
the financial success and economic viability of the borrowers of our commercial loans;
commercial real estate market conditions in the Chicago metropolitan area and southern Wisconsin;
the extent of commercial and consumer delinquencies and declines in real estate values, which may require further increases in the Company’s allowance for loan and lease losses;
inaccurate assumptions in our analytical and forecasting models used to calculate our projected revenue and losses, and manage our loan portfolio;
changes in the level and volatility of interest rates, the capital markets and other market indices that may affect, among other things, the Company’s liquidity and the value of its assets and liabilities;
competitive pressures in the financial services business which may affect the pricing of the Company’s loan and deposit products as well as its services (including wealth management services), which may result in loss of market share and reduced income from deposits, loans, advisory fees and income from other products;
failure to identify and complete favorable acquisitions in the future or unexpected difficulties or developments related to the integration of the Company’s recent or future acquisitions;
unexpected difficulties and losses related to FDIC-assisted acquisitions, including those resulting from our loss-sharing arrangements with the FDIC;
any negative perception of the Company’s reputation or financial strength;
ability of the Company to raise additional capital on acceptable terms when needed;
disruption in capital markets, which may lower fair values for the Company’s investment portfolio;
failure or circumvention of our controls and procedures;
ability of the Company to use technology to provide products and services that will satisfy customer demands and create efficiencies in operations and to manage risks associated therewith;
adverse effects on our information technology systems resulting from failures, human error or cyberattack, any of which could result in an information or security breach, the disclosure or misuse of confidential or proprietary information, significant legal and financial losses and reputational harm;
adverse effects of failures by our vendors to provide agreed upon services in the manner and at the cost agreed, particularly our information technology vendors;
increased costs as a result of protecting our customers from the impact of stolen debit card information;
accuracy and completeness of information the Company receives about customers and counterparties to make credit decisions;
ability of the Company to attract and retain senior management experienced in the banking and financial services industries;
environmental liability risk associated with lending activities;
the impact of any claims or legal actions to which the Company is subject, including any effect on our reputation;
losses incurred in connection with repurchases and indemnification payments related to mortgages and increases in reserves associated therewith;
the loss of customers as a result of technological changes allowing consumers to complete their financial transactions without the use of a bank;
the soundness of other financial institutions;
the expenses and delayed returns inherent in opening new branches and de novo banks;
examinations and challenges by tax authorities;
changes in accounting standards, rules and interpretations and the impact on the Company’s financial statements;
the ability of the Company to receive dividends from its subsidiaries;
anti-takeover provisions could negatively impact our shareholders;
a decrease in the Company’s regulatory capital ratios, including as a result of further declines in the value of its loan portfolios, or otherwise;
legislative or regulatory changes, particularly changes in regulation of financial services companies and/or the products and services offered by financial services companies, including those resulting from the Dodd-Frank Act;
a lowering of our credit rating;
changes in U.S. monetary policy;
uncertainty regarding future legislative and regulatory actions, which could be disruptive to our operations;
restrictions upon our ability to market our products to consumers and limitations on our ability to profitably operate our mortgage business resulting from the Dodd-Frank Act;
increased costs of compliance, heightened regulatory capital requirements and other risks associated with changes in regulation and the current regulatory environment, including the Dodd-Frank Act;
the impact of heightened capital requirements;
increases in the Company’s FDIC insurance premiums, or the collection of special assessments by the FDIC;
non-compliance with the USA PATRIOT Act, Bank Secrecy Act or other laws or regulations could result in fines and sanctions;
delinquencies or fraud with respect to the Company’s premium finance business;
credit downgrades among commercial and life insurance providers that could negatively affect the value of collateral securing the Company’s premium finance loans;
the Company’s ability to comply with covenants under its credit facility; and
fluctuations in the stock market, which may have an adverse impact on the Company’s wealth management business and brokerage operation.

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

CONFERENCE CALL, WEB CAST AND REPLAY

The Company will hold a conference call at 2:30 p.m. (CT) Wednesday, April 19, 2017 regarding first quarter 2017 results. Individuals interested in listening should call (877) 363-5049 and enter Conference ID #99783626. 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 first quarter 2017 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 Information
Selected Financial Highlights - 5 Quarter Trends
(Dollars in thousands, except per share data)

	Three Months Ended
	March 31,			December 31,			September 30,			June 30,			March 31,
	2017			2016			2016			2016			2016
Selected Financial Condition Data (at end of period):
Total assets	$	25,778,893		$	25,668,553		$	25,321,759		$	24,420,616		$	23,488,168
Total loans, excluding loans held-for-sale and covered loans	19,931,058			19,703,172			19,101,261			18,174,655			17,446,413
Total deposits	21,730,441			21,658,632			21,147,655			20,041,750			19,217,071
Junior subordinated debentures	253,566			253,566			253,566			253,566			253,566
Total shareholders’ equity	2,764,983			2,695,617			2,674,474			2,623,595			2,418,442
Selected Statements of Income Data:
Net interest income	192,580			190,778			184,636			175,270			171,509
Net revenue ⁽¹⁾	261,345			276,053			271,240			260,069			240,261
Net income	58,378			54,608			53,115			50,041			49,111
Net income per common share – Basic	$	1.05		$	0.98		$	0.96		$	0.94		$	0.94
Net income per common share – Diluted	$	1.00		$	0.94		$	0.92		$	0.90		$	0.90
Selected Financial Ratios and Other Data:
Performance Ratios:
Net interest margin	3.36		%	3.21		%	3.21		%	3.24		%	3.29		%
Net interest margin - fully taxable equivalent (non-GAAP) ⁽²⁾	3.39		%	3.23		%	3.24		%	3.27		%	3.32		%
Non-interest income to average assets	1.11		%	1.32		%	1.38		%	1.44		%	1.21		%
Non-interest expense to average assets	2.70		%	2.80		%	2.82		%	2.89		%	2.70		%
Net overhead ratio ⁽³⁾	1.60		%	1.48		%	1.44		%	1.46		%	1.49		%
Return on average assets	0.94		%	0.85		%	0.85		%	0.85		%	0.86		%
Return on average common equity	8.93		%	8.32		%	8.20		%	8.43		%	8.55		%
Return on average tangible common equity (non-GAAP) ⁽²⁾	11.44		%	10.68		%	10.55		%	11.12		%	11.33		%
Average total assets	$	25,207,348		$	25,611,060		$	24,879,252		$	23,754,755		$	22,902,913
Average total shareholders’ equity	2,739,050			2,689,876			2,651,684			2,465,732			2,389,770
Average loans to average deposits ratio (excluding loans held-for-sale, excluding covered loans)	92.5		%	89.6		%	89.8		%	92.4		%	92.2		%
Average loans to average deposits ratio (excluding loans held-for-sale, including covered loans)	92.7			89.9			90.3			92.9			93.0
Common Share Data at end of period:
Market price per common share	$	69.12		$	72.57		$	55.57		$	51.00		$	44.34
Book value per common share ⁽²⁾	$	47.88		$	47.12		$	46.86		$	45.96		$	44.67
Tangible common book value per share ⁽²⁾	$	37.97		$	37.08		$	37.06		$	36.12		$	34.20
Common shares outstanding	52,503,663			51,880,540			51,714,683			51,619,155			48,518,998
Other Data at end of period:⁽⁶⁾
Leverage Ratio⁽⁴⁾	9.3		%	8.9		%	9.0		%	9.2		%	8.7		%
Tier 1 Capital to risk-weighted assets ⁽⁴⁾	9.9		%	9.7		%	9.8		%	10.1		%	9.6		%
Common equity Tier 1 capital to risk-weighted assets ⁽⁴⁾	8.9		%	8.6		%	8.7		%	8.9		%	8.4		%
Total capital to risk-weighted assets ⁽⁴⁾	12.1		%	11.9		%	12.1		%	12.4		%	12.1		%
Allowance for credit losses ⁽⁵⁾	$	127,630		$	123,964		$	119,341		$	115,426		$	111,201
Non-performing loans	78,979			87,454			83,128			88,119			89,499
Allowance for credit losses to total loans ⁽⁵⁾	0.64		%	0.63		%	0.62		%	0.64		%	0.64		%
Non-performing loans to total loans	0.40		%	0.44		%	0.44		%	0.48		%	0.51		%
Number of:
Bank subsidiaries	15			15			15			15			15
Banking offices	155			155			152			153			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. As of January 1, 2015 capital ratios are calculated under the requirements of Basel III.

(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 INFORMATION
Consolidated Statements of Condition - 5 Quarter Trends

	(Unaudited)						(Unaudited)			(Unaudited)			(Unaudited)
	March 31,			December 31,			September 30,			June 30,			March 31,
(In thousands)	2017			2016			2016			2016			2016
Assets
Cash and due from banks	$	214,102		$	267,194		$	242,825		$	267,551		$	208,480
Federal funds sold and securities purchased under resale agreements	3,046			2,851			4,122			4,024			3,820
Interest bearing deposits with banks	1,007,468			980,457			816,104			693,269			817,013
Available-for-sale securities, at fair value	1,803,733			1,724,667			1,650,096			637,663			770,983
Held-to-maturity securities, at amortized cost	667,764			635,705			932,767			992,211			911,715
Trading account securities	714			1,989			1,092			3,613			2,116
Federal Home Loan Bank and Federal Reserve Bank stock	78,904			133,494			129,630			121,319			113,222
Brokerage customer receivables	23,171			25,181			25,511			26,866			28,266
Mortgage loans held-for-sale	288,964			418,374			559,634			554,256			314,554
Loans, net of unearned income, excluding covered loans	19,931,058			19,703,172			19,101,261			18,174,655			17,446,413
Covered loans	52,359			58,145			95,940			105,248			138,848
Total loans	19,983,417			19,761,317			19,197,201			18,279,903			17,585,261
Allowance for loan losses	(125,819		)	(122,291		)	(117,693		)	(114,356		)	(110,171		)
Allowance for covered loan losses	(1,319		)	(1,322		)	(1,422		)	(2,412		)	(2,507		)
Net loans	19,856,279			19,637,704			19,078,086			18,163,135			17,472,583
Premises and equipment, net	598,746			597,301			597,263			595,792			591,608
Lease investments, net	155,233			129,402			116,355			103,749			89,337
Accrued interest receivable and other assets	560,741			593,796			660,923			670,014			647,853
Trade date securities receivable	—			—			677			1,079,238			1,008,613
Goodwill	499,341			498,587			485,938			486,095			484,280
Other intangible assets	20,687			21,851			20,736			21,821			23,725
Total assets	$	25,778,893		$	25,668,553		$	25,321,759		$	24,420,616		$	23,488,168
Liabilities and Shareholders’ Equity
Deposits:
Non-interest bearing	$	5,790,579		$	5,927,377		$	5,711,042		$	5,367,672		$	5,205,410
Interest bearing	15,939,862			15,731,255			15,436,613			14,674,078			14,011,661
Total deposits	21,730,441			21,658,632			21,147,655			20,041,750			19,217,071
Federal Home Loan Bank advances	227,585			153,831			419,632			588,055			799,482
Other borrowings	238,787			262,486			241,366			252,611			253,126
Subordinated notes	138,993			138,971			138,943			138,915			138,888
Junior subordinated debentures	253,566			253,566			253,566			253,566			253,566
Trade date securities payable	—			—			—			40,000			—
Accrued interest payable and other liabilities	424,538			505,450			446,123			482,124			407,593
Total liabilities	23,013,910			22,972,936			22,647,285			21,797,021			21,069,726
Shareholders’ Equity:
Preferred stock	251,257			251,257			251,257			251,257			251,257
Common stock	52,605			51,978			51,811			51,708			48,608
Surplus	1,381,886			1,365,781			1,356,759			1,350,751			1,194,750
Treasury stock	(4,884		)	(4,589		)	(4,522		)	(4,145		)	(4,145		)
Retained earnings	1,143,943			1,096,518			1,051,748			1,008,464			967,882
Accumulated other comprehensive loss	(59,824		)	(65,328		)	(32,579		)	(34,440		)	(39,910		)
Total shareholders’ equity	2,764,983			2,695,617			2,674,474			2,623,595			2,418,442
Total liabilities and shareholders’ equity	$	25,778,893		$	25,668,553		$	25,321,759		$	24,420,616		$	23,488,168

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

	Three Months Ended
	March 31,			December 31,		September 30,			June 30,			March 31,
(In thousands, except per share data)	2017			2016		2016			2016			2016
Interest income
Interest and fees on loans	$	199,314		$	199,155	$	190,189		$	178,530		$	173,127
Interest bearing deposits with banks	1,623			1,541		1,156			793			746
Federal funds sold and securities purchased under resale agreements	1			1		1			1			1
Investment securities	13,573			12,954		15,496			16,398			17,190
Trading account securities	11			32		18			14			11
Federal Home Loan Bank and Federal Reserve Bank stock	1,070			1,144		1,094			1,112			937
Brokerage customer receivables	167			186		195			216			219
Total interest income	215,759			215,013		208,149			197,064			192,231
Interest expense
Interest on deposits	16,270			16,413		15,621			13,594			12,781
Interest on Federal Home Loan Bank advances	1,590			2,439		2,577			2,984			2,886
Interest on other borrowings	1,139			1,074		1,137			1,086			1,058
Interest on subordinated notes	1,772			1,779		1,778			1,777			1,777
Interest on junior subordinated debentures	2,408			2,530		2,400			2,353			2,220
Total interest expense	23,179			24,235		23,513			21,794			20,722
Net interest income	192,580			190,778		184,636			175,270			171,509
Provision for credit losses	5,209			7,350		9,571			9,129			8,034
Net interest income after provision for credit losses	187,371			183,428		175,065			166,141			163,475
Non-interest income
Wealth management	20,148			19,512		19,334			18,852			18,320
Mortgage banking	21,938			35,489		34,712			36,807			21,735
Service charges on deposit accounts	8,265			8,054		8,024			7,726			7,406
(Losses) gains on investment securities, net	(55		)	1,575		3,305			1,440			1,325
Fees from covered call options	759			1,476		3,633			4,649			1,712
Trading (losses) gains, net	(320		)	1,007		(432		)	(316		)	(168		)
Operating lease income, net	5,782			5,171		4,459			4,005			2,806
Other	12,248			12,991		13,569			11,636			15,616
Total non-interest income	68,765			85,275		86,604			84,799			68,752
Non-interest expense
Salaries and employee benefits	99,316			104,735		103,718			100,894			95,811
Equipment	9,002			9,532		9,449			9,307			8,767
Operating lease equipment depreciation	4,636			4,219		3,605			3,385			2,050
Occupancy, net	13,101			14,254		12,767			11,943			11,948
Data processing	7,925			7,687		7,432			7,138			6,519
Advertising and marketing	5,150			6,691		7,365			6,941			3,779
Professional fees	4,660			5,425		5,508			5,419			4,059
Amortization of other intangible assets	1,164			1,158		1,085			1,248			1,298
FDIC insurance	4,156			4,726		3,686			4,040			3,613
OREO expense, net	1,665			1,843		1,436			1,348			560
Other	17,343			20,101		20,564			19,306			15,326
Total non-interest expense	168,118			180,371		176,615			170,969			153,730
Income before taxes	88,018			88,332		85,054			79,971			78,497
Income tax expense	29,640			33,724		31,939			29,930			29,386
Net income	$	58,378		$	54,608	$	53,115		$	50,041		$	49,111
Preferred stock dividends	3,628			3,629		3,628			3,628			3,628
Net income applicable to common shares	$	54,750		$	50,979	$	49,487		$	46,413		$	45,483
Net income per common share - Basic	$	1.05		$	0.98	$	0.96		$	0.94		$	0.94
Net income per common share - Diluted	$	1.00		$	0.94	$	0.92		$	0.90		$	0.90
Cash dividends declared per common share	$	0.14		$	0.12	$	0.12		$	0.12		$	0.12
Weighted average common shares outstanding	52,267			51,812		51,679			49,140			48,448
Dilutive potential common shares	4,160			4,152		4,047			3,965			3,820
Average common shares and dilutive common shares	56,427			55,964		55,726			53,105			52,268

WINTRUST FINANCIAL CORPORATION - SUPPLEMENTAL FINANCIAL INFORMATION
Period End Loan Balances - 5 Quarter Trends

	March 31,			December 31,			September 30,				June 30,				March 31,
(Dollars in thousands)	2017			2016			2016				2016				2016
Balance:
Commercial	$	6,081,489		$	6,005,422		$	5,951,544			$	5,144,533			$	4,890,246
Commercial real estate	6,261,682			6,196,087			5,908,684			5,848,334				5,737,959
Home equity	708,258			725,793			742,868				760,904				774,342
Residential real estate	720,608			705,221			663,598				653,664				626,043
Premium finance receivables - commercial	2,446,946			2,478,581			2,430,233				2,478,280				2,320,987
Premium finance receivables - life insurance	3,593,563			3,470,027			3,283,359				3,161,562				2,976,934
Consumer and other	118,512			122,041			120,975				127,378				119,902
Total loans, net of unearned income, excluding covered loans	$	19,931,058		$	19,703,172		$	19,101,261			$	18,174,655			$	17,446,413
Covered loans	52,359			58,145			95,940				105,248				138,848
Total loans, net of unearned income	$	19,983,417		$	19,761,317		$	19,197,201			$	18,279,903			$	17,585,261
Mix:
Commercial	30		%	30		%	31		%		28		%		28		%
Commercial real estate	31			31			31				31				32
Home equity	4			4			4				4				4
Residential real estate	4			4			3				4				4
Premium finance receivables - commercial	12			12			13				14				13
Premium finance receivables - life insurance	18			18			17				17				17
Consumer and other	1			1			1				1				1
Total loans, net of unearned income, excluding covered loans	100		%	100		%	100		%		99		%		99		%
Covered loans	—			—			—				1				1
Total loans, net of unearned income	100		%	100		%	100		%		100		%		100		%

WINTRUST FINANCIAL CORPORATION - SUPPLEMENTAL FINANCIAL INFORMATION
Period End Deposits Balances - 5 Quarter Trends

	March 31,			December 31,			September 30,			June 30,			March 31,
(Dollars in thousands)	2017			2016			2016			2016			2016
Balance:
Non-interest bearing	$	5,790,579		$	5,927,377		$	5,711,042		$	5,367,672		$	5,205,410
NOW and interest bearing demand deposits	2,484,676			2,624,442			2,552,611			2,450,710			2,369,474
Wealth management deposits ⁽¹⁾	2,390,464			2,209,617			2,283,233			1,904,121			1,761,710
Money market	4,555,752			4,441,811			4,421,631			4,384,134			4,157,083
Savings	2,287,958			2,180,482			1,977,661			1,851,863			1,766,552
Time certificates of deposit	4,221,012			4,274,903			4,201,477			4,083,250			3,956,842
Total deposits	$	21,730,441		$	21,658,632		$	21,147,655		$	20,041,750		$	19,217,071
Mix:
Non-interest bearing	27		%	27		%	27		%	27		%	27		%
NOW and interest bearing demand deposits	11			12			12			12			12
Wealth management deposits ⁽¹⁾	11			10			11			10			9
Money market	21			21			21			22			22
Savings	11			10			9			9			9
Time certificates of deposit	19			20			20			20			21
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 INFORMATION
Net Interest Margin (Including Call Option Income) - 5 Quarter Trends

	Three Months Ended
	March 31,			December 31,			September 30,			June 30,			March 31,
(Dollars in thousands)	2017			2016			2016			2016			2016
Net interest income - FTE	$	194,282		$	192,276		$	186,192		$	176,733		$	172,944
Call option income	759			1,476			3,633			4,649			1,712
Net interest income including call option income	$	195,041		$	193,752		$	189,825		$	181,382		$	174,656
Yield on earning assets	3.79		%	3.64		%	3.65		%	3.67		%	3.71		%
Rate on interest-bearing liabilities	0.58			0.58			0.58			0.56			0.55
Rate spread	3.21		%	3.06		%	3.07		%	3.11		%	3.16		%
Less: Fully tax-equivalent adjustment	(0.03		)	(0.02		)	(0.03		)	(0.03		)	(0.03		)
Net free funds contribution	0.18			0.17			0.17			0.16			0.16
Net interest margin (GAAP-derived)	3.36		%	3.21		%	3.21		%	3.24		%	3.29		%
Fully tax-equivalent adjustment	0.03			0.02			0.03			0.03			0.03
Net interest margin - FTE	3.39		%	3.23		%	3.24		%	3.27		%	3.32		%
Call option income	0.01			0.02			0.06			0.09			0.03
Net interest margin - FTE, including call option income	3.40		%	3.25		%	3.30		%	3.36		%	3.35		%

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

	Three Months Ended March 31,			Years Ended December 31,
(Dollars in thousands)	2017			2016			2015			2014			2013
Net interest income - FTE	$	194,282		$	728,145		$	646,238		$	601,744		$	552,887
Call option income	759			11,470			15,364			7,859			4,773
Net interest income including call option income	$	195,041		$	739,615		$	661,602		$	609,603		$	557,660
Yield on earning assets	3.79		%	3.67		%	3.76		%	3.96		%	4.01		%
Rate on interest-bearing liabilities	0.58			0.57			0.54			0.55			0.63
Rate spread	3.21		%	3.10		%	3.22		%	3.41		%	3.38		%
Less: Fully tax-equivalent adjustment	(0.03		)	(0.02		)	(0.02		)	(0.02		)	(0.01		)
Net free funds contribution	0.18			0.16			0.14			0.12			0.12
Net interest margin (GAAP-derived)	3.36		%	3.24		%	3.34		%	3.51		%	3.49		%
Fully tax-equivalent adjustment	0.03			0.02			0.02			0.02			0.01
Net interest margin - FTE	3.39		%	3.26		%	3.36		%	3.53		%	3.50		%
Call option income	0.01			0.05			0.08			0.05			0.03
Net interest margin - FTE, including call option income	3.40		%	3.31		%	3.44		%	3.58		%	3.53		%

WINTRUST FINANCIAL CORPORATION - SUPPLEMENTAL FINANCIAL INFORMATION
Quarterly Average Balances - 5 Quarter Trends

	Three Months Ended
	March 31,			December 31,			September 30,			June 30,			March 31,
(In thousands)	2017			2016			2016			2016			2016
Liquidity management assets	$	3,270,467		$	3,860,616		$	3,671,577		$	3,413,113		$	3,300,138
Other earning assets	25,236			27,608			29,875			29,759			28,731
Loans, net of unearned income	19,923,606			19,711,504			19,071,621			18,204,552			17,508,593
Covered loans	56,872			59,827			101,570			109,533			141,351
Total earning assets	$	23,276,181		$	23,659,555		$	22,874,643		$	21,756,957		$	20,978,813
Allowance for loan and covered loan losses	(127,425		)	(122,665		)	(121,156		)	(116,984		)	(112,028		)
Cash and due from banks	229,588			221,892			240,239			272,935			259,343
Other assets	1,829,004			1,852,278			1,885,526			1,841,847			1,776,785
Total assets	$	25,207,348		$	25,611,060		$	24,879,252		$	23,754,755		$	22,902,913
Interest-bearing deposits	$	15,466,670		$	15,567,263		$	15,117,102		$	14,065,995		$	13,717,333
Federal Home Loan Bank advances	181,338			388,780			459,198			946,081			825,104
Other borrowings	255,012			240,174			249,307			248,233			257,384
Subordinated notes	138,980			138,953			138,925			138,898			138,870
Junior subordinated debentures	253,566			253,566			253,566			253,566			257,687
Total interest-bearing liabilities	$	16,295,566		$	16,588,736		$	16,218,098		$	15,652,773		$	15,196,378
Non-interest bearing deposits	5,787,034			5,902,439			5,566,983			5,223,384			4,939,746
Other liabilities	385,698			430,009			442,487			412,866			377,019
Equity	2,739,050			2,689,876			2,651,684			2,465,732			2,389,770
Total liabilities and shareholders’ equity	$	25,207,348		$	25,611,060		$	24,879,252		$	23,754,755		$	22,902,913

WINTRUST FINANCIAL CORPORATION - SUPPLEMENTAL FINANCIAL INFORMATION
Net Interest Margin - 5 Quarter Trends

	Three Months Ended
	March 31, 2017		December 31, 2016		September 30, 2016		June 30, 2016		March 31, 2016
Yield earned on:
Liquidity management assets	2.13	%	1.70	%	2.03	%	2.27	%	2.41	%
Other earning assets	2.95	%	3.37	%	2.96	%	3.21	%	3.31	%
Loans, net of unearned income	4.05	%	4.01	%	3.96	%	3.92	%	3.94	%
Covered loans	6.55	%	6.38	%	4.45	%	5.44	%	5.72	%
Total earning assets	3.79	%	3.64	%	3.65	%	3.67	%	3.71	%
Rate paid on:
Interest-bearing deposits	0.43	%	0.42	%	0.41	%	0.39	%	0.37	%
Federal Home Loan Bank advances	3.55	%	2.50	%	2.23	%	1.27	%	1.41	%
Other borrowings	1.81	%	1.78	%	1.81	%	1.76	%	1.65	%
Subordinated notes	5.10	%	5.12	%	5.12	%	5.12	%	5.12	%
Junior subordinated debentures	3.80	%	3.90	%	3.70	%	3.67	%	3.41	%
Total interest-bearing liabilities	0.58	%	0.58	%	0.58	%	0.56	%	0.55	%
Interest rate spread	3.21	%	3.06	%	3.07	%	3.11	%	3.16	%
Less: Fully tax-equivalent adjustment	(0.03	)	(0.02	)	(0.03	)	(0.03	)	(0.03	)
Net free funds/contribution	0.18		0.17		0.17		0.16		0.16
Net interest margin (GAAP)	3.36	%	3.21	%	3.21	%	3.24	%	3.29	%
Fully tax-equivalent adjustment	0.03		0.02		0.03		0.03		0.03
Net interest margin - FTE	3.39	%	3.23	%	3.24	%	3.27	%	3.32	%

WINTRUST FINANCIAL CORPORATION - SUPPLEMENTAL FINANCIAL INFORMATION
Non-Interest Income - 5 Quarter Trends

	Three Months Ended
	March 31,			December 31,			September 30,			June 30,			March 31,
(In thousands)	2017			2016			2016			2016			2016
Brokerage	$	6,220		$	6,408		$	6,752		$	6,302		$	6,057
Trust and asset management	13,928			13,104			12,582			12,550			12,263
Total wealth management	20,148			19,512			19,334			18,852			18,320
Mortgage banking	21,938			35,489			34,712			36,807			21,735
Service charges on deposit accounts	8,265			8,054			8,024			7,726			7,406
(Losses) gains on investment securities, net	(55		)	1,575			3,305			1,440			1,325
Fees from covered call options	759			1,476			3,633			4,649			1,712
Trading (losses) gains, net	(320		)	1,007			(432		)	(316		)	(168		)
Operating lease income, net	5,782			5,171			4,459			4,005			2,806
Other:
Interest rate swap fees	1,433			2,870			2,881			1,835			4,438
BOLI	985			981			884			1,257			472
Administrative services	1,024			1,115			1,151			1,074			1,069
(Loss) gain on extinguishment of debt	—			(717		)	—			—			4,305
Early pay-offs of leases	1,211			728			—			—			—
Miscellaneous	7,595			8,014			8,653			7,470			5,332
Total other income	12,248			12,991			13,569			11,636			15,616
Total Non-Interest Income	$	68,765		$	85,275		$	86,604		$	84,799		$	68,752

WINTRUST FINANCIAL CORPORATION - SUPPLEMENTAL FINANCIAL INFORMATION
Non-Interest Expense - 5 Quarter Trends

	Three Months Ended
	March 31,		December 31,		September 30,		June 30,		March 31,
(In thousands)	2017		2016		2016		2016		2016
Salaries and employee benefits:
Salaries	$	55,008	$	53,108	$	54,309	$	52,924	$	50,282
Commissions and incentive compensation	26,643		35,744		33,740		32,531		26,375
Benefits	17,665		15,883		15,669		15,439		19,154
Total salaries and employee benefits	99,316		104,735		103,718		100,894		95,811
Equipment	9,002		9,532		9,449		9,307		8,767
Operating lease equipment depreciation	4,636		4,219		3,605		3,385		2,050
Occupancy, net	13,101		14,254		12,767		11,943		11,948
Data processing	7,925		7,687		7,432		7,138		6,519
Advertising and marketing	5,150		6,691		7,365		6,941		3,779
Professional fees	4,660		5,425		5,508		5,419		4,059
Amortization of other intangible assets	1,164		1,158		1,085		1,248		1,298
FDIC insurance	4,156		4,726		3,686		4,040		3,613
OREO expense, net	1,665		1,843		1,436		1,348		560
Other:
Commissions - 3rd party brokers	1,098		1,165		1,362		1,324		1,310
Postage	1,442		1,955		1,889		2,038		1,302
Miscellaneous	14,803		16,981		17,313		15,944		12,714
Total other expense	17,343		20,101		20,564		19,306		15,326
Total Non-Interest Expense	$	168,118	$	180,371	$	176,615	$	170,969	$	153,730

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

	Three Months Ended
	March 31,			December 31,			September 30,			June 30,			March 31,
(Dollars in thousands)	2017			2016			2016			2016			2016
Allowance for loan losses at beginning of period	$	122,291		$	117,693		$	114,356		$	110,171		$	105,400
Provision for credit losses	5,316			7,357			9,741			9,269			8,423
Other adjustments	(56		)	33			(112		)	(134		)	(78		)
Reclassification (to) from allowance for unfunded lending-related commitments	(138		)	(25		)	(579		)	(40		)	(81		)
Charge-offs:
Commercial	641			3,054			3,469			721			671
Commercial real estate	261			375			382			502			671
Home equity	625			326			574			2,046			1,052
Residential real estate	329			410			134			693			493
Premium finance receivables - commercial	1,427			1,843			1,959			1,911			2,480
Premium finance receivables - life insurance	—			—			—			—			—
Consumer and other	134			205			389			224			107
Total charge-offs	3,417			6,213			6,907			6,097			5,474
Recoveries:
Commercial	273			668			176			121			629
Commercial real estate	554			1,916			364			296			369
Home equity	65			300			65			71			48
Residential real estate	178			21			61			31			112
Premium finance receivables - commercial	612			498			456			633			787
Premium finance receivables - life insurance	—			—			—			—			—
Consumer and other	141			43			72			35			36
Total recoveries	1,823			3,446			1,194			1,187			1,981
Net charge-offs	(1,594		)	(2,767		)	(5,713		)	(4,910		)	(3,493		)
Allowance for loan losses at period end	$	125,819		$	122,291		$	117,693		$	114,356		$	110,171
Allowance for unfunded lending-related commitments at period end	1,811			1,673			1,648			1,070			1,030
Allowance for credit losses at period end	$	127,630		$	123,964		$	119,341		$	115,426		$	111,201
Annualized net charge-offs (recoveries) by category as a percentage of its own respective category’s average:
Commercial	0.03		%	0.16		%	0.24		%	0.05		%	0.00		%
Commercial real estate	(0.02		)	(0.10		)	0.00			0.01			0.02
Home equity	0.32			0.01			0.27			1.03			0.52
Residential real estate	0.06			0.13			0.03			0.26			0.17
Premium finance receivables - commercial	0.13			0.22			0.24			0.21			0.29
Premium finance receivables - life insurance	0.00			0.00			0.00			0.00			0.00
Consumer and other	(0.02		)	0.47			0.92			0.57			0.20
Total loans, net of unearned income, excluding covered loans	0.03		%	0.06		%	0.12		%	0.11		%	0.08		%
Net charge-offs as a percentage of the provision for credit losses	29.98		%	37.61		%	58.65		%	52.97		%	41.47		%
Loans at period-end	$	19,931,058		$	19,703,172		$	19,101,261		$	18,174,655		$	17,446,413
Allowance for loan losses as a percentage of loans at period end	0.63		%	0.62		%	0.62		%	0.63		%	0.63		%
Allowance for credit losses as a percentage of loans at period end	0.64		%	0.63		%	0.62		%	0.64		%	0.64		%

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

	March 31,			December 31,			September 30,			June 30,			March 31,
(Dollars in thousands)	2017			2016			2016			2016			2016
Loans past due greater than 90 days and still accruing⁽¹⁾:
Commercial	$	100		$	174		$	—		$	235		$	338
Commercial real estate	—			—			—			—			1,260
Home equity	—			—			—			—			—
Residential real estate	—			—			—			—			—
Premium finance receivables - commercial	4,991			7,962			7,754			10,558			9,548
Premium finance receivables - life insurance	2,024			3,717			—			—			1,641
Consumer and other	104			144			60			163			180
Total loans past due greater than 90 days and still accruing	7,219			11,997			7,814			10,956			12,967
Non-accrual loans:
Commercial	14,307			15,875			16,418			16,801			12,373
Commercial real estate	20,809			21,924			22,625			24,415			26,996
Home equity	11,722			9,761			9,309			8,562			9,365
Residential real estate	11,943			12,749			12,205			12,413			11,964
Premium finance receivables - commercial	12,629			14,709			14,214			14,497			15,350
Premium finance receivables - life insurance	—			—			—			—			—
Consumer and other	350			439			543			475			484
Total non-accrual loans	71,760			75,457			75,314			77,163			76,532
Total non-performing loans:
Commercial	14,407			16,049			16,418			17,036			12,711
Commercial real estate	20,809			21,924			22,625			24,415			28,256
Home equity	11,722			9,761			9,309			8,562			9,365
Residential real estate	11,943			12,749			12,205			12,413			11,964
Premium finance receivables - commercial	17,620			22,671			21,968			25,055			24,898
Premium finance receivables - life insurance	2,024			3,717			—			—			1,641
Consumer and other	454			583			603			638			664
Total non-performing loans	$	78,979		$	87,454		$	83,128		$	88,119		$	89,499
Other real estate owned	17,090			17,699			19,933			22,154			24,022
Other real estate owned - from acquisitions	22,774			22,583			15,117			15,909			16,980
Other repossessed assets	544			581			428			420			171
Total non-performing assets	$	119,387		$	128,317		$	118,606		$	126,602		$	130,672
TDRs performing under the contractual terms of the loan agreement	$	28,392		$	29,911		$	29,440		$	33,310		$	34,949
Total non-performing loans by category as a percent of its own respective category’s period-end balance:
Commercial	0.24		%	0.27		%	0.28		%	0.33		%	0.26		%
Commercial real estate	0.33			0.35			0.38			0.42			0.49
Home equity	1.66			1.34			1.25			1.13			1.21
Residential real estate	1.66			1.81			1.84			1.90			1.91
Premium finance receivables - commercial	0.72			0.91			0.90			1.01			1.07
Premium finance receivables - life insurance	0.06			0.11			—			—			0.06
Consumer and other	0.38			0.48			0.50			0.50			0.55
Total loans, net of unearned income	0.40		%	0.44		%	0.44		%	0.48		%	0.51		%
Total non-performing assets as a percentage of total assets	0.46		%	0.50		%	0.47		%	0.52		%	0.56		%
Allowance for loan losses as a percentage of total non-performing loans	159.31		%	139.83		%	141.58		%	129.78		%	123.10		%

(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 $11.3 million, $11.8 million, $14.8 million, $16.3 million and $17.6 million as of March 31, 2017, December 31, 2016, September 30, 2016, June 30, 2016 and March 31, 2016, respectively.

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

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