Wintrust Financial : 3rd Quarter 2023 Earnings Call – Presentation Materials

Wintrust Financial Corporation

Earnings Release

Presentation

Q3 2023

Forward Looking Statements

This document contains forward-looking statements within the meaning of federal securities laws. Forward-looking information can be identified through the use of words such as "intend," "plan," "project," "expect," "anticipate," "believe," "estimate," "contemplate," "possible," "will," "may," "should," "would" and "could." Forward-looking statements and information are not historical facts, are premised on many factors and assumptions, and represent only management's expectations, estimates and projections regarding future events. Similarly, these statements are not guarantees of future performance and involve certain risks and uncertainties that are difficult to predict, and which may include, but are not limited to, those listed below and the Risk Factors discussed under Item 1A of the Company's 2022 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,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, and management's long-term performance goals, as well as statements relating to the anticipated effects on the Company's financial condition and results of operations from expected developments or events. Actual results could differ materially from those addressed in the forward- looking statements as a result of numerous factors, including the following:

• economic conditions and events that affect the economy, housing prices, the job market and other factors that may adversely affect the Company's liquidity and the performance of its loan portfolios, including an actual or threatened U.S. government debt default or rating downgrade, particularly in the markets in which it operates;
• negative effects suffered by us or our customers resulting from changes in U.S. trade policies;
• the extent of defaults and losses on the Company's loan portfolio, which may require further increases in its allowance for credit losses;
• estimates of fair value of certain of the Company's assets and liabilities, which could change in value significantly from period to period;
• the financial success and economic viability of the borrowers of our commercial loans;
• commercial real estate market conditions in the Chicago metropolitan area and southern Wisconsin;
• the extent of commercial and consumer delinquencies and declines in real estate values, which may require further increases in the Company's allowance for credit losses;
• inaccurate assumptions in our analytical and forecasting models used to manage our loan portfolio;
• changes in the level and volatility of interest rates, the capital markets and other market indices that may affect, among other things, the Company's liquidity and the value of its assets and liabilities;
• the interest rate environment, including a prolonged period of low interest rates or rising interest rates, either broadly or for some types of instruments, which may affect the Company's net interest income and net interest margin, and which could materially adversely affect the Company's profitability;
• competitive pressures in the financial services business which may affect the pricing of the Company's loan and deposit products as well as its services (including wealth management services), which may result in loss of market share and reduced income from deposits, loans, advisory fees and income from other products;
• failure to identify and complete favorable acquisitions in the future or unexpected difficulties or developments related to the integration of the Company's recent or future acquisitions;
• unexpected difficulties and losses related to FDIC-assisted acquisitions;
• harm to the Company's reputation;
• any negative perception of the Company's financial strength;
• ability of the Company to raise additional capital on acceptable terms when needed;
• disruption in capital markets, which may lower fair values for the Company's investment portfolio;
• ability of the Company to use technology to provide products and services that will satisfy customer demands and create efficiencies in operations and to manage risks associated therewith;
• failure or breaches of our security systems or infrastructure, or those of third parties;
• security breaches, including denial of service attacks, hacking, social engineering attacks, malware intrusion and similar events or data corruption attempts and identity theft;
• adverse effects on our information technology systems resulting from failures, human error or cyberattacks (including ransomware);

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Forward Looking Statements

• 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, and ability of the Company to effectively manage the transition of the chief executive officer role;
• environmental liability risk associated with lending activities;
• the impact of any claims or legal actions to which the Company is subject, including any effect on our reputation;
• losses incurred in connection with repurchases and indemnification payments related to mortgages and increases in reserves associated therewith;
• the loss of customers as a result of technological changes allowing consumers to complete their financial transactions without the use of a bank;
• the soundness of other financial institutions and the impact of recent failures of financial institutions, including broader financial institution liquidity risk and concerns;
• the expenses and delayed returns inherent in opening new branches and de novo banks;
• liabilities, potential customer loss or reputational harm related to closings of existing branches;
• examinations and challenges by tax authorities, and any unanticipated impact of the Tax Act;
• changes in accounting standards, rules and interpretations, and the impact on the Company's financial statements;
• the ability of the Company to receive dividends from its subsidiaries;
• the ability of the Company to successfully transition from LIBOR to an alternative benchmark rate for current and future transactions;
• a decrease in the Company's capital ratios, including as a result of declines in the value of its loan portfolios, or otherwise;
• legislative or regulatory changes, particularly changes in regulation of financial services companies and/or the products and services offered by financial services companies;
• changes in laws, regulations, rules, standards and contractual obligations regarding data privacy and cybersecurity;
• a lowering of our credit rating;
• changes in U.S. monetary policy and changes to the Federal Reserve's balance sheet, including changes in response to persistent inflation or otherwise;
• regulatory restrictions upon our ability to market our products to consumers and limitations on our ability to profitably operate our mortgage business;
• increased costs of compliance, heightened regulatory capital requirements and other risks associated with changes in regulation and the regulatory environment;
• the impact of heightened capital requirements;
• increases in the Company's FDIC insurance premiums, or the collection of special assessments by the FDIC;
• delinquencies or fraud with respect to the Company's premium finance business;
• credit downgrades among commercial and life insurance providers that could negatively affect the value of collateral securing the Company's premium finance loans;
• the Company's ability to comply with covenants under its credit facility;
• fluctuations in the stock market, which may have an adverse impact on the Company's wealth management business and brokerage operation;
• widespread outages of operational, communication, or other systems, whether internal or provided by third parties, natural or other disasters (including acts of terrorism, armed hostilities and pandemics), and the effects of climate change could have an adverse effect on the Company's financial condition and results of operations, lead to material disruption of the Company's operations or the ability or willingness of clients to access the Company's products and services; and
• the severity, magnitude and duration of the COVID-19 pandemic, including the continued emergence of variant strains, and the direct and indirect impact of such pandemic, as well as responses to the pandemic by the government, businesses and consumers, on the economy, our financial results, operations and personnel, commercial activity and demand across our business and our customers' businesses.

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 and this presentation. 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 and presentations.

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Q3 2023 Highlights (comparative to Q2 2023)

Net Income

$164.2 million

+$9.4 million

Pre-Tax,Pre-Provision1

$244.8 million

+$4.8 million

Diluted EPS

$2.53

+$0.15

Return on Assets

1.20%

+2 bps

Total Assets

ROE	/ ROTCE
(GAAP)	(non-GAAP)
13.35%	15.73%
+56 bps	+61 bps

Total Loans

Efficiency Ratio

(GAAP)	(non-GAAP)
57.18%	56.94%
-2 bps	-1 bp

Total Deposits

$55.6 billion

+$1.3 billion

Diversified Balance

Sheet

Stable Margin

Supports Earnings

Exceptional Credit

Quality

$41.4 billion	$45.0 billion
+$0.4 billion	+$1.0 billion

• Strong deposit growth of $1.0 billion, or 9% annualized, supported by our diversified product offerings
• Loan growth of $423 million, or 4% annualized.Adjusting for the impact of the premium finance receivables commercial loan sale, loans increased $767 million or 7% annualized
• Second most profitable quarter in the Company's history with net income of $164.2 million
• Net interest margin declined by 4 bps during the third quarter of 2023
• Low NPLs at $133.1 million or 0.32% of total loans
• Allowance coverage reserves on core loans increased to 1.51% of total core loans
• Low levels of net-charge offs at 8 basis points of average total loans on an annualized basis

1 Pre-tax income, excluding provision for credit losses (non-GAAP) - See non-GAAP reconciliation in the Appendix

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Earnings Summary

Differentiated, highly diversified and sustainable business model

Strong Quarterly Net Income

($ in Millions)

		$180.2		$164.2
	$144.8		$154.8
$143.0
		1.40%
1.12%	1.10%		1.18%	1.20%
Q3 2022	Q4 2022	Q1 2023	Q2 2023	Q3 2023
		Net Income	ROA

Diluted EPS Quarterly Trend

		$2.80		$2.53
$2.21	$2.23		$2.38
Q3 2022	Q4 2022	Q1 2023	Q2 2023	Q3 2023

Diluted EPS

Higher Quarterly PTPP driven by Net Interest Income

($ in Millions)

		$266.6		$244.8
	$242.8		$239.9
$206.5
Q3 2022	Q4 2022	Q1 2023	Q2 2023	Q3 2023

Pre-Tax Income, excluding Provision for Credit Losses (non-GAAP)

Q3 2023 Highlights

• Record net interest income of $462.4 million supported by loan growth and a relatively stable net interest margin in Q3 2023
• The Company reported record year-to-date net income of $499.1 million through the first nine months of 2023
• Second highest quarterly net income achieved in the Company's history

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