WINTRUST FINANCIAL CORP - FORM 8-K - EX-99.1

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Exhibit 99.1

News Release

FOR IMMEDIATE RELEASE April 20, 2011

FOR MORE INFORMATION CONTACT:

Edward J. Wehmer, President & Chief Executive Officer
David A. Dykstra, Senior Executive Vice President & Chief Operating Officer
(847) 615-4096
Web site address: www.wintrust.com

WINTRUST FINANCIAL CORPORATION REPORTS FIRST QUARTER 2011
NET INCOME OF $16.4 MILLION

LAKE FOREST, ILLINOIS—Wintrust Financial Corporation (“Wintrust” or “the Company”) (Nasdaq WTFC) announced net income of $16.4 million or $0.36 per diluted common share for the quarter ended March 31, 2011 compared to net income of $16.0 million or $0.41 per diluted common share for the quarter ended March 31, 2010 and $14.2 million or $(0.06) per diluted common share for the fourth quarter of 2010.

The Company’s total assets of $14.1 billion at March 31, 2011 increased $1.2 billion from March 31, 2010. Total deposits as of March 31, 2011 were $10.9 billion, an increase of $1.2 billion from March 31, 2010. Noninterest bearing deposits increased by $407.4 million or 46.7% since March 31, 2010, while NOW, money market and savings deposits increased $526.6 million or 14.7% during the same time period. Total loans, including loans held for sale and excluding covered loans, were $9.7 billion as of March 31, 2011, an increase of $429.7 million over March 31, 2010.

Edward J. Wehmer, President and Chief Executive Officer, commented, “We are pleased to report net income of $16.4 million for the first quarter of 2011 compared to $16.0 million in the first quarter of 2010 and $14.2 million in the fourth quarter of 2010. The results for the first quarter of 2011 show continued core operating strengths as our net interest margin improved, credit related costs remain at levels similar to recent quarters, core loans outstanding increased, demand deposits related to this core loan growth increased and the beneficial shift in our deposit mix away from single-product CD customers continues. Specifically, our commercial lending initiatives continue to benefit non-interest bearing deposit growth where this component of total deposits has increased over the past 12 months to 11.7%, up from 9.0%.

Our renewed franchise expansion efforts that began in the second quarter of 2010, picked up as we acquired two banks in FDIC-assisted transactions, acquired the assets of another residential mortgage origination company and acquired, or contracted to acquire, three closed branch banking facilities from the FDIC in Crystal Lake, Schaumburg and Des Plaines. These transactions will open up new markets to us.”

Mr. Wehmer noted, “Our results for the first quarter of 2011 included $9.8 million of bargain purchase gains on the two FDIC-assisted transactions. These gains were negated somewhat by an industry-wide fall-off in residential real-estate loan originations, as we experienced a 55% decline in origination volumes compared to the first quarter of 2010. Over the past three months, our period end balances of mortgages held-for-sale and our niche mortgage warehouse lending have declined by $375 million. This not only impacted the composition of our balance sheet, but negatively impacted non-interest income as mortgage banking income declined by $11.1 million in the first quarter of 2011 compared to the fourth quarter of 2010.”

Commenting further on credit quality, Mr. Wehmer said, “Non-performing loans and other real-estate owned both increased slightly since year-end as severe weather conditions and a shorter first quarter business calendar hampered the outflow of non-performing credits. During the first quarter, the Company recorded a provision for credit losses of $25.3 million, net charge-offs of $25.3 million and other real-estate owned operating expenses and charges of $5.8 million. Our allowance for credit losses, excluding covered loans, increased to $117.1 million or 1.22% of total loans.”

In closing, Mr. Wehmer added, “This year will mark the 20th anniversary of the start of the Wintrust organization. What began as a single temporary store-front location in Lake Forest in 1991 now has 88 banking locations, as well as wealth management, mortgage banking and specialty finance operations. We believe we are successfully managing through the current credit cycle of elevated credit costs, higher levels of liquidity with little or no yield and increased capital scrutiny, and we believe our opportunities to expand the franchise have also increased. Our core commercial loan pipeline is strong which should result in shifting our low yielding liquidity assets into higher yield loans and resulting higher margins on those assets. Marketing efforts are only just beginning in our newer markets and present us with good opportunities to further expand and strengthen our core deposit franchise to support the funding of potential future loan originations. Our capital levels remain well above regulatory requirements, we are free from the restraints of TARP and are excited about the opportunities that lie ahead.”

Wintrust’s key operating measures and growth rates for the first quarter of 2011, as compared to the sequential and linked quarters are shown in the table below:


										% or⁽⁴⁾			% or
										basis point (bp)			basis point (bp)
										change			change
	Three Months Ended									from			from
	March 31,			December 31,			March 31,			4th Quarter			1st Quarter
	2011			2010			2010			2010			2010
Net income	$	16,402		$	14,205		$	16,017			15	%		2	%
Net income (loss) per common share — diluted	$	0.36		$	(0.06	)	$	0.41			700	%		(12	)%

Core pre-tax earnings ⁽²⁾	$	48,799		$	58,666		$	42,076			(17	)%		16	%
Net revenue ⁽¹⁾	$	150,501		$	157,138		$	138,472			(4	)%		9	%
Net interest income	$	109,614		$	112,677		$	95,865			(3	)%		14	%

Net interest margin⁽²⁾		3.48	%		3.46	%		3.38	%	2		bp	10		bp
Net overhead ratio⁽³⁾		1.66	%		1.73	%		1.33	%	(7)		bp	33		bp
Return on average assets		0.47	%		0.40	%		0.52	%	7		bp	(5)		bp
Return on average common equity		4.49	%		(0.66	)%		4.93	%	515		bp	(44)		bp

At end of period
Total assets	$	14,080,180		$	13,980,156		$	12,839,978			3	%		10	%
Total loans, excluding covered loans	$	9,561,802		$	9,599,886		$	9,070,562			(2	)%		5	%
Total loans, including loans held-for-sale, excluding covered loans	$	9,656,288		$	9,971,333		$	9,226,611			(13	)%		5	%
Total deposits	$	10,915,169		$	10,803,673		$	9,724,870			4	%		12	%
Total shareholders’ equity	$	1,453,253		$	1,436,549		$	1,364,832			5	%		6	%


⁽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 web site at www.wintrust.com by choosing “Financial Reports” under the “Investor Relations” heading, and then choosing “Supplemental Financial Info.”

Items Impacting Comparative Financial Results: Acquisitions and Capital

Acquisitions

On March 25, 2011, the Company announced that its wholly-owned subsidiary bank, Advantage National Bank Group (“Advantage”), acquired certain assets and liabilities and the banking operations of The Bank of Commerce (“TBOC”) in an FDIC-assisted transaction. TBOC operated one location in Wood Dale, Illlinois and had approximately $163 million in total assets and $161 million in total deposits as of December 31, 2010. Advantage acquired substantially all of TBOC’s assets at a discount of approximately 14% and assumed all of the non-brokered deposits at a premium of approximately 0.1%.

On February 4, 2011, the Company announced that its wholly-owned subsidiary bank, Northbrook Bank & Trust Company (“Northbrook”), acquired certain assets and liabilities and the banking operations of Community First Bank-Chicago (“CFBC”) in an FDIC-assisted transaction. CFBC operated one location in Chicago and had approximately $51.1 million in total assets and $49.5 million in total deposits as of December 31, 2010. Northbrook Bank acquired substantially all of CFBC’s assets at a discount of approximately 8% and assumed all of the non-brokered deposits at a premium of approximately 0.5%.

On February 3, 2011, the Company announced the acquisition of certain assets and the assumption of certain liabilities of the mortgage banking business of Woodfield Planning Corporation (“Woodfield”) of Rolling Meadows, Illinois. With offices in Rolling Meadows, Illinois and Crystal Lake, Illinois, Woodfield originated approximately $180 million in mortgage loans in 2010.

On August 17, 2010, the Company announced that its wholly-owned subsidiary bank, Wheaton Bank & Trust Company (“Wheaton”) signed a Branch Purchase and Assumption Agreement whereby it agreed to acquire a branch of First National Bank of Brookfield located in Naperville, Illinois. The transaction closed on October 22, 2010 and the acquired operations are operating as Naperville Bank & Trust. Through this transaction, Wheaton acquired approximately $23 million of deposits, approximately $11 million of performing loans, the property, bank facility and various other assets.

On August 6, 2010, the Company announced that its wholly-owned subsidiary bank, Northbrook, in an FDIC-assisted transaction, had acquired certain assets and liabilities and the banking operations of Ravenswood Bank (“Ravenswood”). Ravenswood operated one location in Chicago, Illinois and one in Mount Prospect, Illinois.

On April 23, 2010, the Company announced that Northbrook and Wheaton, in two FDIC-assisted transactions, had acquired certain assets and liabilities and the banking operations of Lincoln Park Savings Bank

(“Lincoln Park”) and Wheatland Bank (“Wheatland”), respectively. Lincoln Park operated four locations in Chicago, Illinois. Wheatland had one location in Naperville, Illinois.

In summary, in the FDIC-assisted transactions:

• Advantage assumed approximately $161 million of the outstanding deposits and approximately $163 million of assets of TBOC, prior to purchase accounting adjustments. A bargain purchase gain of $7.9 million was recognized on this transaction.

• Northbrook assumed approximately $50 million of the outstanding deposits and approximately $51 million of assets of CFBC, prior to purchase accounting adjustments. A bargain purchase gain of $1.9 million was recognized on this transaction.

• Northbrook assumed approximately $120 million of the outstanding deposits and approximately $188 million of assets of Ravenswood, prior to purchase accounting adjustments. A bargain purchase gain of $6.8 million was recognized on this transaction.

• Northbrook assumed approximately $160 million of the outstanding deposits and approximately $170 million of assets of Lincoln Park, prior to purchase accounting adjustments. A bargain purchase gain of $4.2 million was recognized on this transaction.

• Wheaton assumed approximately $400 million of the outstanding deposits and approximately $370 million of assets of Wheatland, prior to purchase accounting adjustments. A bargain purchase gain of $22.3 million was recognized on this transaction.

Loans comprise the majority of the assets acquired in the five FDIC-assisted transactions and are subject to loss sharing agreements with the FDIC where the FDIC has agreed to reimburse the Company for 80% of losses incurred on the purchased loans. We refer to the loans subject to these loss-sharing agreements as “covered loans.” Covered assets include covered loans, covered OREO and certain other covered assets. The agreements with the FDIC require that the Company follow certain servicing procedures or risk losing FDIC reimbursement of losses related to covered assets.

Capital

On February 14, 2011, the U.S. Department of Treasury (“the Treasury”) sold all 1.6 million warrants to purchase the Company’s common stock it received in connection with its purchase of the Company’s Fixed Rate Cumulative Perpetual Preferred Stock, Series B in December 2008. The Treasury sold the warrants to third parties, in a public modified Dutch auction for $15.80 per warrant. The Company received no proceeds in connection with

the offering. Holders of the warrants have the right to buy the Company’s common stock at a price of $22.82 per share. The warrants are traded on the NASDAQ Global Select Market under the ticker symbol “WTFCW” and expire on December 19, 2018.

On December 22, 2010, the Company repurchased all 250,000 shares of its Fixed Rate Cumulative Perpetual Preferred Stock, Series B (the “Preferred Stock”), which it issued to the Treasury under the TARP Capital Purchase Program. The Preferred Stock was repurchased at a price of $251.3 million, which included accrued and unpaid dividends of $1.3 million. The repurchase of the Preferred Stock resulted in a non-cash deemed preferred stock dividend that reduced net income applicable to common shares in the fourth quarter of 2010 by approximately $11.4 million. This amount represented the difference between the repurchase price and the carrying amount of the Preferred Stock, or the accelerated accretion of the applicable discount on the preferred shares.

In December 2010, the Company sold 3.69 million shares of common stock at $30.00 per share in a public offering. The Company received net proceeds of $104.8 million after deducting underwriting discounts and commissions and estimated offering expenses. At the same time the Company sold 4.6 million 7.50% tangible equity units (“TEU”) at a public offering price of $50.00 per unit. The Company received net proceeds of $222.7 million after deducting underwriting discounts and commissions and estimated offering expenses. In total, the Company received net proceeds of $327.5 million from the December offerings.

In March 2010, the Company sold 6.67 million shares of common stock at $33.25 per share in a public offering. The Company received net proceeds of $210.3 million after deducting underwriting discounts and commissions and estimated offering expenses.

As of March 31, 2011, the Company’s estimated capital ratios were 14.1% for total risk-based capital, 12.8% for tier 1 risk-based capital and 10.3% for leverage, well above the well capitalized guidelines. Additionally, the Company’s tangible common equity ratio was 8.0% at March 31, 2011.

Financial Performance Overview — First quarter of 2011

For the first quarter of 2011, net interest income totaled $109.6 million, an increase of $13.7 million as compared to the first quarter of 2010 and a decrease of $3.1 million as compared to the fourth quarter of 2010. Average earning assets for the first quarter of 2011 increased by $1.3 billion compared to the first quarter of 2010. Average earning asset growth over the past 12 months was primarily a result of the $699.2 million increase in average loans, $326.6 million of average covered loan growth from the five FDIC-assisted bank acquisitions and $247.9 million increase in average liquidity management assets. Growth in the life insurance premium finance

portfolio of $327.1 million and growth in the commercial and industrial portfolio of 256.9 million accounted for the bulk of the total average loan growth over the past 12 months. The average earning asset growth of $1.3 billion over the past 12 months was funded by a $440.3 million increase in the average balances of savings, NOW, MMA and Wealth Management deposits, an increase in the average balance of net free funds of $533.2 million and increase in the average balance of retail certificates of deposit of $313.5 million.

The net interest margin for the first quarter of 2011 was 3.48% compared to 3.46% in the fourth quarter of 2010. The two basis point increase in net interest margin in the first quarter of 2011 compared to the fourth quarter of 2010 resulted as reduced costs of interest-bearing deposits continued to improve the net interest margin as the rate on these deposits decreased ten basis points in the first quarter of 2011 compared to the fourth quarter of 2010. Including the costs of wholesale funding, the rate on total interest-bearing liabilities declined four basis points between these comparable periods. Offsetting this positive impact to the net interest margin was the yield on total average earning assets, which declined by four basis points as the yield on loans declined by 37 basis points and the yield on liquidity management assets improved by 43 basis points. The increased effective yield recognized on the FDIC covered loan portfolio helped to counteract some of the impact of the loan portfolio yield decreases. The lower yield on the loan portfolio in the first quarter of 2011 was primarily attributable to a $5.6 million decline in accretion recognized on the purchased life insurance premium finance loan portfolio as prepayments declined and lower yields on the commercial premium finance receivable portfolio. Average net free funds increased by $123 million, improving the contribution to net interest margin by two basis points in the first quarter of 2011 compared to the fourth quarter of 2010. The Company continues to see a beneficial shift in its deposit mix as average non-interest bearing deposits comprised 11.7% of total average deposits in the first quarter of 2011 compared to 10.5% in the fourth quarter of 2010.

The lower level of net interest income recorded in the first quarter of 2011 compared to the fourth quarter of 2010 was primarily attributable to the first quarter of 2011 consisting of two less days than the fourth quarter of 2010, reducing net interest income by approximately $2.5 million. The remainder of the decrease in net interest income was caused by slightly lower levels of total average earning assets as the average balance of mortgages held for sale and mortgage warehouse lines declined by $240 million in the first quarter of 2011 compared to the fourth quarter of 2010.

decreased 51 basis points in the first quarter of 2011 compared to the first quarter of 2010. Including the costs of wholesale funding, the rate on total interest-bearing liabilities declined 43 basis points between these comparable periods. Partially offsetting this positive impact to the net interest margin was the yield on total average earning assets, which declined by 33 basis points as the yield on loans declined by 41 basis points and the yield on liquidity management assets declined by 49 basis points. The yield recognized on the FDIC covered loan portfolio helped to counteract some of the impact of these yield decreases.

The higher level of net interest income recorded in the first quarter of 2011 compared to the first quarter of 2010 was primarily attributable to a $699 million increase in the average balance of loans and a $327 million increase in FDIC covered loans. The bulk of this growth was funded by an increase of $725 million in interest-bearing deposits and a $533 million increase in net free funds (of which $402 million was non-interest bearing deposits). The Company continues to see a beneficial shift in its deposit mix as non-interest bearing deposits comprised 11.7% of total average deposits in the first quarter of 2011 compared to 8.9% in the first quarter of 2010.

Non-interest income totaled $40.9 million in the first quarter of 2011, decreasing $1.7 million, or 4.0%, compared to the first quarter of 2010 and decreasing $3.6 million, or 8.0%, compared to the fourth quarter of 2010. Mortgage banking revenue increased $1.9 million when compared to the first quarter of 2010 and decreased $11.1 million when compared to the fourth quarter of 2010 as loans originated and sold to the secondary market were $562 million in the first quarter of 2011 compared to $687 million in the first quarter of 2010 and $1.3 billion in the fourth quarter of 2010 (see “Non-Interest Income” section later in this document for further detail). Trading income decreased by $6.4 million in the first quarter of 2011 when compared to the first quarter of 2010 primarily due to the realization in the prior year of market value increases on certain collateralized mortgage obligations held in trading during 2010.

Non-interest expense totaled $98.1 million in the first quarter of 2011, increasing $14.2 million, or 17%, compared to the first quarter of 2010 and decreasing $8.1 million compared to the fourth quarter of 2010. The increase compared to the first quarter of 2010 was primarily attributable to a $7.0 million increase in salaries and employee benefits. The increase in salaries and employee benefits was attributable to a $1.0 million increase in bonus and commissions as variable pay based revenue increased (primarily in our mortgage banking and wealth management businesses), a $4.0 million increase in salaries caused by the addition of employees from the five FDIC-assisted transactions and larger staffing related to organic Company growth, and a $2.0 million increase from employee benefits (primarily related to health plans and payroll taxes). Additionally, OREO related expenses

increased $4.5 million and professional fees increased $439,000, primarily related to increased legal costs related to non-performing assets and recent bank acquisitions.

The Company’s effective tax rate increased to 39.4% in the first quarter of 2011, up from 37.2% in the first quarter of 2010. This increase is primarily attributable to two items. The increased Illinois corporate tax rate on 2011 earnings increased our tax expense by approximately $200,000. Additionally, the Company recorded approximately $300,000 of additional tax expense due to a one-time adjustment to change the recorded value of its deferred tax liabilities as of the beginning of 2011 as a result of the Illinois corporate tax rate change that was effective on January 1, 2011.

Financial Performance Overview — Credit Quality

Non-performing loans, excluding covered loans, totaled $155.4 million, or 1.63% of total loans, at March 31, 2011, compared to $142.1 million, or 1.48% of total loans, at December 31, 2010 and $141.0 million, or 1.55% of total loans, at March 31, 2010. OREO, excluding covered OREO, of $85.3 million at March 31, 2011 increased $14.1 million compared to $71.2 million at December 31, 2010 and decreased $3.7 million compared to $89.0 million at March 31, 2010. Throughout the quarter, management worked with certain borrowers to restructure performing loans. These actions help these borrowers maintain their homes or businesses and keep these loans in an accruing status for the Company. As of March 31, 2011, a total of $96.6 million of outstanding loan balances qualified as restructured loans, with $69.4 million of these modified loans in an accruing status.

The provision for credit losses totaled $25.3 million for the first quarter of 2011 compared to $28.8 million for the fourth quarter of 2010 and $29.0 million in the first quarter of 2010. Net charge-offs as a percentage of loans, excluding covered loans, for the first quarter of 2011 totaled 104 basis points on an annualized basis compared to 119 basis points on an annualized basis in the first quarter of 2010 and 96 basis points on an annualized basis in the fourth quarter of 2010.

Excluding the allowance for covered loan losses and covered loans, the allowance for credit losses at March 31, 2011 totaled $117.1 million, or 1.22% of total loans, compared to $118.0 million, or 1.23% of total loans, at December 31, 2010 and $106.1 million, or 1.17% of total loans, at March 31, 2010.


	Three Months Ended
WINTRUST FINANCIAL CORPORATION	March 31,
Selected Financial Highlights	2011			2010
Selected Financial Condition Data (at end of period):
Total assets	$	14,080,180		$	12,839,978
Total loans, excluding covered loans		9,561,802			9,070,562
Total deposits		10,915,169			9,724,870
Junior subordinated debentures		249,493			249,493
Total shareholders’ equity		1,453,253			1,364,832

Selected Statements of Income Data:
Net interest income	$	109,614		$	95,865
Net revenue ⁽¹⁾		150,501			138,472
Core pre-tax earnings ⁽²⁾		48,799			42,076
Net income		16,402			16,017
Net income (loss) per common share — Basic	$	0.44		$	0.43
Net income (loss) per common share — Diluted	$	0.36		$	0.41

Selected Financial Ratios and Other Data:
Performance Ratios:
Net interest margin ⁽²⁾		3.48	%		3.38	%
Non-interest income to average assets		1.18	%		1.37	%
Non-interest expense to average assets		2.84	%		2.70	%
Net overhead ratio ⁽³⁾		1.66	%		1.33	%
Efficiency ratio^{(2) (4)}		65.05	%		60.59	%
Return on average assets		0.47	%		0.52	%
Return on average common equity		4.49	%		4.93	%

Average total assets	$	14,018,525		$	12,590,817
Average total shareholders’ equity		1,437,869			1,196,191
Average loans to average deposits ratio (excluding covered loans)		91.2	%		94.6	%
Average loans to average deposits ratio (including covered loans)		94.2	%		94.6	%

*Common Share Data at end of period:*
Market price per common share	$	36.75		$	37.21
Book value per common share ⁽²⁾	$	33.70		$	34.76
Tangible common book value per share ⁽²⁾	$	26.65		$	25.39
Common shares outstanding		34,947,251			31,044,449
Other Data at end of period:⁽⁹⁾
Leverage Ratio⁽⁵⁾		10.3	%		10.8	%
Tier 1 capital to risk-weighted assets ⁽⁵⁾		12.8	%		13.4	%
Total capital to risk-weighted assets⁽⁵⁾		14.1	%		14.9	%
Tangible common equity ratio (TCE) ⁽²⁾⁽⁸⁾		8.0	%		6.3	%
Allowance for credit losses ⁽⁶⁾	$	117,067		$	106,050
Credit discounts on purchased premium finance receivables — life insurance⁽⁷⁾	$	22,147		$	33,990
Non-performing loans	$	155,387		$	140,960
Allowance for credit losses to total loans ⁽⁶⁾		1.22	%		1.17	%
Non-performing loans to total loans		1.63	%		1.55	%
Number of:
Bank subsidiaries		15			15
Non-bank subsidiaries		8			8
Banking offices		88			78


⁽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⁾		The efficiency ratio is calculated by dividing total non-interest expense by tax-equivalent net revenue (less securities gains or losses).

		A lower ratio indicates more efficient revenue generation.

⁽⁵⁾		Capital ratios for current quarter-end are estimated.

⁽⁶⁾		The allowance for credit losses includes both the allowance for loan losses and the allowance for unfunded lending-related commitments, but excludes the allowance for covered loan losses.

⁽⁷⁾		Represents the credit discounts on purchased life insurance premium finance loans.

⁽⁸⁾		Total shareholders’ equity minus preferred stock and total intangible assets divided by total assets minus total intangible assets.

⁽⁹⁾		Asset quality ratios exclude covered loans.

WINTRUST FINANCIAL CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CONDITION


	(Unaudited)						(Unaudited)
	March 31,			December 31,			March 31,
(In thousands)	2011			2010			2010
Assets
Cash and due from banks	$	140,919		$	153,690		$	106,501
Federal funds sold and securities purchased under resale agreements		33,575			18,890			15,393
Interest-bearing deposits with other banks		946,193			865,575			1,222,323
Available-for-sale securities, at fair value		1,710,321			1,496,302			1,205,919
Trading account securities		2,229			4,879			39,938
Federal Home Loan Bank and Federal Reserve Bank stock, at cost		85,144			82,407			74,001
Brokerage customer receivables		25,361			24,549			20,978
Mortgage loans held-for-sale, at fair value		92,151			356,662			149,897
Mortgage loans held-for-sale, at lower of cost or market		2,335			14,785			6,152
Loans, net of unearned income, excluding covered loans		9,561,802			9,599,886			9,070,562
Covered loans		430,452			334,353			—

Total loans		9,992,254			9,934,239			9,070,562
Less: Allowance for loan losses		115,049			113,903			102,397
Less: Allowance for covered loan losses		4,844			—			—

Net loans		9,872,361			9,820,336			8,968,165
Premises and equipment, net		369,785			363,696			348,182
FDIC indemnification asset		124,785			118,182			—
Accrued interest receivable and other assets		381,025			366,438			363,676
Trade date securities receivable		—			—			27,850
Goodwill		281,940			281,190			278,025
Other intangible assets		12,056			12,575			12,978

Total assets	$	14,080,180		$	13,980,156		$	12,839,978


Liabilities and Shareholders’ Equity
Deposits:
Non-interest bearing	$	1,279,256		$	1,201,194		$	871,830
Interest bearing		9,635,913			9,602,479			8,853,040

Total deposits		10,915,169			10,803,673			9,724,870
Notes payable		1,000			1,000			1,000
Federal Home Loan Bank advances		409,386			423,500			421,775
Other borrowings		250,032			260,620			218,079
Secured borrowings — owed to securitization investors		600,000			600,000			600,000
Subordinated notes		50,000			50,000			60,000
Junior subordinated debentures		249,493			249,493			249,493
Trade date securities payable		10,000			—			62,017
Accrued interest payable and other liabilities		141,847			155,321			137,912

Total liabilities		12,626,927			12,543,607			11,475,146


Shareholders’ Equity:
Preferred stock		49,672			49,640			285,642
Common stock		34,947			34,864			31,044
Surplus		967,587			965,203			677,090
Treasury stock		(74	)		—			—
Retained earnings		404,580			392,354			373,903
Accumulated other comprehensive loss		(3,459	)		(5,512	)		(2,847	)

Total shareholders’ equity		1,453,253			1,436,549			1,364,832

Total liabilities and shareholders’ equity	$	14,080,180		$	13,980,156		$	12,839,978

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


	Three Months Ended
	March 31,
(In thousands, except per share data)	2011			2010
Interest income
Interest and fees on loans	$	136,543		$	129,542
Interest bearing deposits with banks		936			1,274
Federal funds sold and securities purchased under resale agreements		32			49
Securities		9,540			11,012
Trading account securities		13			21
Federal Home Loan Bank and Federal Reserve Bank stock		550			459
Brokerage customer receivables		166			139

Total interest income		147,780			142,496

Interest expense
Interest on deposits		23,956			33,212
Interest on Federal Home Loan Bank advances		3,958			4,346
Interest on notes payable and other borrowings		2,630			1,462
Interest on secured borrowings — owed to securitization investors		3,040			2,995
Interest on subordinated notes		212			241
Interest on junior subordinated debentures		4,370			4,375

Total interest expense		38,166			46,631

Net interest income		109,614			95,865
Provision for credit losses		25,344			29,044

Net interest income after provision for credit losses		84,270			66,821

Non-interest income
Wealth management		10,236			8,667
Mortgage banking		11,631			9,727
Service charges on deposit accounts		3,311			3,332
Gains on available-for-sale securities, net		106			392
Gain on bargain purchases		9,838			10,894
Trading (losses) gains		(440	)		5,961
Other		6,205			3,634

Total non-interest income		40,887			42,607

Non-interest expense
Salaries and employee benefits		56,099			49,072
Equipment		4,264			3,896
Occupancy, net		6,505			6,230
Data processing		3,523			3,407
Advertising and marketing		1,614			1,314
Professional fees		3,546			3,107
Amortization of other intangible assets		689			645
FDIC insurance		4,518			3,809
OREO expenses, net		5,808			1,337
Other		11,543			11,121

Total non-interest expense		98,109			83,938

Income before taxes		27,048			25,490
Income tax expense		10,646			9,473

Net income	$	16,402		$	16,017

Preferred stock dividends and discount accretion	$	1,031		$	4,943

Net income applicable to common shares	$	15,371		$	11,074

Net income per common share — Basic	$	0.44		$	0.43

Net income per common share — Diluted	$	0.36		$	0.41

Cash dividends declared per common share	$	0.09		$	0.09

Weighted average common shares outstanding		34,928			25,942
Dilutive potential common shares		7,794			1,139

Average common shares and dilutive common shares		42,722			27,081

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), net interest margin (including its individual components), the efficiency ratio, tangible common equity ratio, tangible common book value per share and core pre-tax earnings. Management believes that these measures and ratios provide users of the Company’s financial information a more meaningful view of the performance of the 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. Core pre-tax earnings is a significant metric in assessing the Company’s core operating performance. Core pre-tax earnings is adjusted to exclude the provision for credit losses and certain significant items.

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 5 quarters:


	Three Months Ended
	March 31,			December 31,			September 30,			June 30,			March 31,
(Dollars and shares in thousands)	2011			2010			2010			2010			2010
Calculation of Net Interest Margin and Efficiency Ratio
(A) Interest Income (GAAP)	$	147,780		$	153,962		$	147,401		$	149,248		$	142,496
Taxable-equivalent adjustment:
- Loans		116			79			85			90			80
- Liquidity management assets		295			326			324			366			361
- Other earning assets		3			—			7			5			5

Interest Income — FTE	$	148,194		$	154,367		$	147,817		$	149,709		$	142,942
(B) Interest Expense (GAAP)	$	38,166		$	41,285		$	44,421		$	44,934		$	46,631

Net interest income — FTE		110,028			113,082			103,396			104,775			96,311

(C) Net Interest Income (GAAP) (A minus B)	$	109,614		$	112,677		$	102,980		$	104,314		$	95,865

(D) Net interest margin (GAAP)		3.46	%		3.44	%		3.20	%		3.42	%		3.36	%
Net interest margin — FTE		3.48	%		3.46	%		3.22	%		3.43	%		3.38	%
(E) Efficiency ratio (GAAP)		65.23	%		67.65	%		67.20	%		59.90	%		60.79	%
Efficiency ratio — FTE		65.05	%		67.48	%		67.01	%		59.72	%		60.59	%

Calculation of Tangible Common Equity ratio (at period end)
Total shareholders’ equity	$	1,453,253		$	1,436,549		$	1,398,912		$	1,384,736		$	1,364,832
Less: Preferred stock		(49,672	)		(49,640	)		(287,234	)		(286,460	)		(285,642	)
Less: Intangible assets		(293,996	)		(293,765	)		(291,219	)		(291,300	)		(291,003	)

(F) Total tangible common shareholders’ equity	$	1,109,585		$	1,093,144		$	820,459		$	806,976		$	788,187


Total assets	$	14,080,180		$	13,980,156		$	14,100,368		$	13,708,560		$	12,839,978
Less: Intangible assets		(293,996	)		(293,765	)		(291,219	)		(291,300	)		(291,003	)

(G) Total tangible assets	$	13,786,184		$	13,686,391		$	13,809,149		$	13,417,260		$	12,548,975

Tangible common equity ratio (F/G)		8.0	%		8.0	%		5.9	%		6.0	%		6.3	%

Calculation of Core Pre-Tax Earnings
Income before taxes	$	27,048		$	22,142		$	32,385		$	20,790		$	25,490
Add: Provision for credit losses		25,344			28,795			25,528			41,297			29,044
Add: OREO expenses, net		5,808			7,384			4,767			5,843			1,337
Add: Recourse obligation on loans previously sold		103			1,365			1,432			4,721			3,452
Less: Gain on bargain purchases		(9,838	)		(250	)		(6,593	)		(26,494	)		(10,894	)
Less: Trading losses (gains)		440			(611	)		(210	)		1,617			(5,961	)
Less: (Gains) losses on available-for-sale securities, net		(106	)		(159	)		(9,235	)		(46	)		(392	)

Core pre-tax earnings	$	48,799		$	58,666		$	48,074		$	47,728		$	42,076


Calculation of book value per share
Total shareholders’ equity	$	1,453,253		$	1,436,549		$	1,398,912		$	1,384,736		$	1,364,832
Less: Preferred stock		(49,672	)		(49,640	)		(287,234	)		(286,460	)		(285,642	)

(H) Total common equity	$	1,403,581		$	1,386,909		$	1,111,678		$	1,098,276		$	1,079,190


Actual common shares outstanding		34,947			34,864			31,144			31,084			31,044
Add: TEU conversion shares		6,696			7,512			—			—			—

(I) Common shares used for book value calculation		41,643			42,376			31,144			31,084			31,044


Book value per share (H/I)	$	33.70		$	32.73		$	35.70		$	35.33		$	34.76
Tangible common book value per share (F/I)	$	26.65		$	25.80		$	26.34		$	25.96		$	25.39

LOANS


Loan Portfolio Mix and Growth Rates										% Growth
										From ⁽¹⁾			From
	March 31,			December 31,			March 31,			December 31,			March 31,
(Dollars in thousands)	2011			2010			2010			2010			2010
Balance:
Commercial	$	1,937,561		$	2,049,326		$	1,749,895			(22)	%		11	%
Commercial real-estate		3,356,562			3,338,007			3,333,157			2			1
Home equity		891,332			914,412			924,993			(10	)		(4	)
Residential real-estate		344,909			353,336			322,984			(10	)		7
Premium finance receivables — commercial		1,337,851			1,265,500			1,317,822			23			2
Premium finance receivables — life insurance		1,539,521			1,521,886			1,233,573			5			25
Indirect consumer ⁽²⁾		52,379			51,147			83,136			10			(37	)
Consumer and other		101,687			106,272			105,002			(17	)		(3	)

Total loans, net of unearned income, excluding covered loans	$	9,561,802		$	9,599,886		$	9,070,562			(2)	%		5	%
Covered loans		430,452			334,353			—			117			100

Total loans, net of unearned income	$	9,992,254		$	9,934,239		$	9,070,562			2	%		10	%


Mix:
Commercial		19	%		21	%		19	%
Commercial real-estate		34			34			37
Home equity		9			9			10
Residential real-estate		4			3			4
Premium finance receivables — commercial		13			13			14
Premium finance receivables — life insurance		15			15			14
Indirect consumer ⁽²⁾		1			1			1
Consumer and other		1			1			1

Total loans, net of unearned income, excluding covered loans		96	%		97	%		100	%
Covered loans		4			3			—

Total loans, net of unearned income		100	%		100	%		100	%


⁽¹⁾		Annualized

⁽²⁾		Includes autos, boats, snowmobiles and other indirect consumer loans.

Commercial and Commercial Real-Estate Loans, excluding covered loans
As of March 31, 2011


								> 90 Days		Allowance
			%of					Past Due		For Loan
			Total					and Still		Losses
(Dollars in thousands)	Balance		Balance			Nonaccrual		Accruing		Allocation
Commercial:
Commercial and industrial	$	1,277,657		24.2	%	$	24,277	$	150	$	20,208
Franchise		114,376		2.2			1,792		—		974
Mortgage warehouse lines of credit		33,482		0.6			—		—		290
Community Advantage — homeowner associations		75,948		1.4			—		—		190
Aircraft		22,317		0.4			74		—		130
Asset-based lending		301,899		5.7			—		—		4,828
Municipal		60,376		1.1			—		—		1,037
Leases		51,506		1.0			14		—		449

Total commercial	$	1,937,561		36.6	%	$	26,157	$	150	$	28,106


Commercial Real-Estate:
Residential construction	$	91,367		1.7	%	$	7,891	$	—	$	2,987
Commercial construction		121,548		2.3			1,396		692		3,914
Land		230,214		4.3			26,974		—		13,971
Office		557,267		10.5			17,945		—		9,001
Industrial		495,636		9.4			1,251		524		4,744
Retail		523,114		9.9			12,824		—		7,424
Multi-family		293,863		5.6			5,968		—		9,945
Mixed use and other		1,043,553		19.7			19,752		781		13,660

Total commercial real-estate	$	3,356,562		63.4	%	$	94,001	$	1,997	$	65,646

Total commercial and commercial real-estate	$	5,294,123		100.0	%	$	120,158	$	2,147	$	93,752

Commercial real-estate — collateral location by state:
Illinois	$	2,725,135		81.2	%
Wisconsin		352,975		10.5

Total primary markets	$	3,078,110		91.7	%

Florida		48,071		1.4
Arizona		41,875		1.2
Indiana		47,659		1.4
Other (no individual state greater than 0.5%)		140,847		4.3

Total	$	3,356,562		100.0	%

DEPOSITS

Deposit Portfolio Mix and Growth Rates


										% Growth
										From ⁽¹⁾			From
	March 31,			December 31,			March 31,			December 31,			March 31,
(Dollars in thousands)	2011			2010			2010			2010			2010
Balance:
Non-interest bearing	$	1,279,256		$	1,201,194		$	871,830			26	%		47	%
NOW		1,526,955			1,561,507			1,448,857			(9	)		5
Wealth Management deposits ⁽²⁾		659,194			658,660			690,919			0			(5	)
Money Market		1,844,416			1,759,866			1,586,830			19			16
Savings		749,681			744,534			558,770			3			34
Time certificates of deposit		4,855,667			4,877,912			4,567,664			(2	)		6

Total deposits	$	10,915,169		$	10,803,673		$	9,724,870			4	%		12	%

Mix:
Non-interest bearing		12	%		11	%		9	%
NOW		14			15			15
Wealth Management deposits ⁽²⁾		6			6			7
Money Market		17			16			16
Savings		7			7			6
Time certificates of deposit		44			45			47

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 Chicago Trust Company which have been placed into deposit accounts of the Banks.

Deposit Maturity Analysis
As of March 31, 2011


											Weighted-
	Non-										Average
	Interest		Savings								Rate of
	Bearing		and				Time				Maturing Time
	and		Money		Wealth		Certificates		Total		Certificates
(Dollars in thousands)	NOW⁽¹⁾		Market ⁽¹⁾		Mgt ⁽¹⁾		of Deposit		Deposits		of Deposit
1-3 months	$	2,806,211	$	2,594,097	$	659,194	$	1,102,908	$	7,162,410		1.38	%
4-6 months								723,965	$	723,965		1.90
7-9 months								700,530	$	700,530		1.32
10-12 months								581,775	$	581,775		1.26
13-18 months								724,299	$	724,299		1.68
19-24 months								313,539	$	313,539		1.82
24+ months								708,651	$	708,651		2.33

Total deposits	$	2,806,211	$	2,594,097	$	659,194	$	4,855,667	$	10,915,169		1.57	%


⁽¹⁾		Balances of non-contractual maturity deposits are shown as maturing in the earliest time frame. These deposits do not have contractual maturities and re-price in varying degrees to changes in interest rates.

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 2011 compared to the first quarter of 2010 (linked quarters):


	For the Three Months Ended								For the Three Months Ended
	March 31, 2011								March 31, 2010
(Dollars in thousands)	Average			Interest		Rate			Average			Interest		Rate
Liquidity management assets^{(1) (2) (7)}	$	2,632,012		$	11,354		1.75	%	$	2,384,122		$	13,155		2.24	%
Other earning assets ^{(2) (3) (7)}		27,718			181		2.65			26,269			164		2.53
Loans, net of unearned income^{(2) (4) (7)}		9,849,309			129,587		5.34			9,150,078			129,623		5.75
Covered loans		326,571			7,072		8.78			—			—		—

Total earning assets ⁽⁷⁾	$	12,835,610		$	148,194		4.68	%	$	11,560,469		$	142,942		5.01	%

Allowance for loan losses		(118,610	)							(107,257	)
Cash and due from banks		152,264								113,514
Other assets		1,149,261								1,024,091

Total assets	$	14,018,525							$	12,590,817


Interest-bearing deposits		9,542,637		$	23,956		1.02	%	$	8,818,012		$	33,212		1.53	%
Federal Home Loan Bank advances		416,021			3,958		3.86			429,195			4,346		4.11
Notes payable and other borrowings		266,379			2,630		4.00			225,919			1,462		2.63
Secured borrowings — owed to securitization investors		600,000			3,040		2.05			600,000			2,995		2.02
Subordinated notes		50,000			212		1.69			60,000			241		1.60
Junior subordinated notes		249,493			4,370		7.01			249,493			4,375		7.01

Total interest-bearing liabilities	$	11,124,530		$	38,166		1.39	%	$	10,382,619		$	46,631		1.82	%

Non-interest bearing deposits		1,261,374								858,875
Other liabilities		194,752								153,132
Equity		1,437,869								1,196,191
Total liabilities and shareholders’ equity	$	14,018,525							$	12,590,817


Interest rate spread ^{(5) (7)}							3.29	%							3.19	%
Net free funds/contribution⁽⁶⁾	$	1,711,080					0.19	%	$	1,177,850					0.19	%

Net interest income/Net interest margin ⁽⁷⁾				$	110,028		3.48	%				$	96,311		3.38	%


⁽¹⁾		Liquidity management assets include available-for-sale 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 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, 2011 and 2010 were $414,000 and $446,000,

		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.

The net interest margin increased ten basis points in the first quarter of 2011 compared to the first quarter of 2010. The driver for this increase was the reduced costs of interest-bearing deposits as the rate on these decreased 51 basis points in the first quarter of 2011 compared to the first quarter of 2010. Including the costs of wholesale funding, the rate on total interest-bearing liabilities declined 43 basis points between these comparable periods. Partially offsetting this positive impact to the net interest margin was the yield on total average earning assets, which declined by 33 basis points as the yield on loans declined by 41 basis points and the yield on liquidity management assets declined by 49 basis points. The yield recognized on the FDIC covered loan portfolio helped to counteract some of the impact of these

yield decreases. Although average net free funds increased by $533 million, the contribution to net interest margin remained at 19 basis points for both periods as the replacement value (rate on total interest-bearing liabilities) was 43 basis points lower.


	For the Three Months Ended								For the Three Months Ended
	March 31, 2011								December 31, 2010
(Dollars in thousands)	Average			Interest		Rate			Average			Interest		Rate
Liquidity management assets^{(1) (2) (7)}	$	2,632,012		$	11,354		1.75	%	$	2,844,351		$	9,455		1.32	%
Other earning assets ^{(2) (3) (7)}		27,718			181		2.65			29,676			183		2.45
Loans, net of unearned income^{(2) (4) (7)}		9,849,309			129,587		5.34			9,777,435			140,689		5.71
Covered loans		326,571			7,072		8.78			337,690			4,042		4.75

Total earning assets ⁽⁷⁾	$	12,835,610		$	148,194		4.68	%	$	12,989,152		$	154,369		4.72	%

Allowance for loan losses		(118,610	)							(116,447	)
Cash and due from banks		152,264								151,562
Other assets		1,149,261								1,175,084

Total assets	$	14,018,525							$	14,199,351


Interest-bearing deposits		9,542,637		$	23,956		1.02	%	$	9,839,223		$	27,853		1.12	%
Federal Home Loan Bank advances		416,021			3,958		3.86			415,260			4,038		3.86
Notes payable and other borrowings		266,379			2,630		4.00			244,044			1,631		2.65
Secured borrowings — owed to securitization investors		600,000			3,040		2.05			600,000			3,089		2.04
Subordinated notes		50,000			212		1.69			53,369			233		1.71
Junior subordinated notes		249,493			4,370		7.01			249,493			4,441		6.97

Total interest-bearing liabilities	$	11,124,530		$	38,166		1.39	%	$	11,401,389		$	41,285		1.43	%

Non-interest bearing deposits		1,261,374								1,148,208
Other liabilities		194,752								207,000
Equity		1,437,869								1,442,754

Total liabilities and shareholders’ equity	$	14,018,525							$	14,199,351


Interest rate spread ^{(5) (7)}							3.29	%							3.29	%
Net free funds/contribution⁽⁶⁾	$	1,711,080					0.19	%	$	1,587,763					0.17	%

Net interest income/Net interest margin ⁽⁷⁾				$	110,028		3.48	%				$	113,084		3.46	%


⁽¹⁾		Liquidity management assets include available-for-sale 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 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, 2011 was $414,000 and for the three months ended December 31, 2010 was $405,000.

⁽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.

The net interest margin increased two basis points in the first quarter of 2011 compared to the fourth quarter of 2010. Reduced costs of interest-bearing deposits continued to improve the net interest margin as the rate on these decreased ten basis points in the first quarter of 2011 compared to the fourth quarter of 2010. Including the costs of wholesale funding, the rate on total interest-bearing liabilities declined four basis points between these comparable periods. Offsetting this positive impact to the net interest margin was the yield on total average earning assets, which declined by four basis points as the yield on loans declined by 37 basis points and the yield on liquidity management assets

improved by 43 basis points. The increased effective yield recognized on the FDIC covered loan portfolio, as higher levels of forecasted cashflows on the covered loan portfolios drive higher effective yields on these assets, helped to counteract some of the impact of the loan portfolio yield decreases. The lower yield on the loan portfolio in the first quarter of 2011 was primarily attributable to a $5.6 million decline in accretion recognized on the purchased life insurance premium finance loan portfolio as prepayments declined and lower yields on the commercial premium finance receivable portfolio. Average net free funds increased by $123 million improving the contribution to net interest margin by two basis points in the first quarter of 2011 compared to the fourth quarter of 2010. The Company continues to see a beneficial shift in its deposit mix as non-interest bearing deposits comprised 11.7% of total average deposits in the first quarter of 2011 compared to 10.5% in the fourth quarter of 2010.

NON-INTEREST INCOME

For the first quarter of 2011, non-interest income totaled $40.9 million, a decrease of $1.7 million, or 4.0%, compared to the first quarter of 2010. The decrease was primarily attributable to lower trading gains and bargain purchase gains, partially offset by increases in fees from covered call options, mortgage banking revenue and wealth management revenue.

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


	Three Months Ended
	March 31,
						$			%
(Dollars in thousands)	2011			2010		Change			Change
Brokerage	$	6,325		$	5,554	$	771			14
Trust and asset management		3,911			3,113		798			26

Total wealth management		10,236			8,667		1,569			18

Mortgage banking		11,631			9,727		1,904			20
Service charges on deposit accounts		3,311			3,332		(21	)		(1	)
Gains on available-for-sale securities		106			392		(286	)		(73	)
Gain on bargain purchases		9,838			10,894		(1,056	)		(10	)
Trading (losses) gains		(440	)		5,961		(6,401	)		(107	)
Other:
Fees from covered call options		2,470			289		2,181			755
Bank Owned Life Insurance		876			623		253			41
Administrative services		717			582		135			23
Miscellaneous		2,142			2,140		2			0

Total Other		6,205			3,634		2,571			71


Total Non-Interest Income	$	40,887		$	42,607	$	(1,720	)		(4	)

Wealth management revenue is comprised of the trust and asset management revenue of The Chicago Trust Company and the asset management fees, brokerage commissions, trading commissions and insurance product commissions at Wayne Hummer Investments and Wintrust Capital Management. Wealth management revenue totaled $10.2 million in the first quarter of 2011 and $8.7 million in the first quarter of 2010, an increase of 18%. Increased asset valuations due to equity market improvements have helped revenue growth from trust and asset management activities. Additionally, the improvement in the equity markets overall have led to the increase of the brokerage component of wealth management revenue as customer trading activity has increased.

Mortgage banking revenue includes revenue from activities related to originating, selling and servicing residential real estate loans for the secondary market. For the quarter ended March 31, 2011, this revenue source totaled $11.6 million, an increase of $1.9 million when compared to the first quarter of 2010. Mortgages originated and sold totaled $562 million in the first quarter of 2011 compared to $687 million in the first quarter of 2010. The increase in mortgage banking revenue in the first quarter of 2011 as compared to the first quarter of 2010 resulted primarily from estimations of fewer loss indemnification requests from investors. The Company enters into residential mortgage loan sale agreements with investors in the normal course of business. These agreements provide recourse to investors through certain representations concerning credit information, loan documentation, collateral and insurability. Investors request the Company to indemnify them against losses on certain loans or to repurchase loans which the investors believe do

not comply with applicable representations. An increase in requests for loss indemnification can negatively impact mortgage banking revenue as additional recourse expense. The Company recognized $103,000 of expense on loans previously sold in the first quarter of 2011, a decrease of $3.3 million compared to the first quarter of 2010. The loss reserves established for loans expected to be repurchased is based on trends in repurchase and indemnification requests, actual loss experience, known and inherent risks in the loans that have been sold, and current economic conditions.

A summary of the mortgage banking revenue components is shown below:

Mortgage banking revenue


	Three Months Ended
	March 31,			December 31,			March 31,
(Dollars in thousands)	2011			2010			2010
Mortgage loans originated and sold	$	562,088		$	1,250,193		$	686,679
Mortgage loans serviced for others	$	943,074		$	942,224		$	750,413
Fair value of mortgage servicing rights (MSRs)	$	9,448		$	8,762		$	6,602
MSRs as a percentage of loans serviced		1.00	%		0.93	%		0.88	%

Gain on sales of loans and other fees	$	11,593		$	23,216		$	13,717
Mortgage servicing rights fair value adjustments		141			835			(538	)
Recourse obligation on loans previously sold		(103	)		(1,365	)		(3,452	)

Total mortgage banking revenue	$	11,631		$	22,686		$	9,727


Gain on sales of loans and other fees as a percentage of loans sold		2.06	%		1.86	%		2.00	%

The gain on bargain purchases of $9.8 million recognized in the first quarter of 2011 relates to the FDIC-assisted acquisitions of TBOC by Advantage and CFBC by Northbrook (see “Items Impacting Comparative Financial Results: Acquisitions”). The gain on bargain purchases of $10.9 million in the first quarter of 2010 related to loans acquired in the Company’s acquisition of a life insurance premium finance loan portfolio in 2009.

Trading losses of $440,000 were recognized by the Company in the first quarter of 2011 compared to gains of $6.0 million in the first quarter of 2010. Lower trading gains in the current period compared to the first quarter of 2010 resulted primarily from realizing market value increases in the prior year on certain collateralized mortgage obligations held in trading which were sold in July 2010.

Other non-interest income for the first quarter of 2011 totaled $6.2 million, compared to $3.6 million in the first quarter of 2010. Fees from certain covered call option transactions increased by $2.2 million in the first quarter of 2011 as compared to the same period in the prior year. Historically, compression in the net interest margin was effectively offset, as has consistently been the case, by the Company’s covered call strategy. An illustration of the past effectiveness of this strategy is shown in the Supplemental Financial Information section (see page titled “Net Interest Margin (Including Call Option Income)”).

NON-INTEREST EXPENSE

Non-interest expense for the first quarter of 2011 totaled $98.1 million and increased approximately $14.2 million, or 17%, compared to the first quarter of 2010.

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


	Three Months Ended
	March 31,				$			%
(Dollars in thousands)	2011		2010		Change			Change
Salaries and employee benefits:
Salaries	$	33,135	$	29,083		4,052			14
Commissions and bonus		10,714		9,731		983			10
Benefits		12,250		10,258		1,992			19

Total salaries and employee benefits		56,099		49,072		7,027			14
Equipment		4,264		3,896		368			9
Occupancy, net		6,505		6,230		275			4
Data processing		3,523		3,407		116			3
Advertising and marketing		1,614		1,314		300			23
Professional fees		3,546		3,107		439			14
Amortization of other intangible assets		689		645		44			7
FDIC insurance		4,518		3,809		709			19
OREO expenses, net		5,808		1,337		4,471			334
Other:
Commissions - 3rd party brokers		1,030		962		68			7
Postage		1,078		1,110		(32	)		(3	)
Stationery and supplies		840		732		108			15
Miscellaneous		8,595		8,317		278			3

Total other		11,543		11,121		422			4


Total Non-Interest Expense	$	98,109	$	83,938	$	14,171			17

Salaries and employee benefits comprised 57% of total non-interest expense in the first quarter of 2011 and 58% in the first quarter of 2010. Salaries and employee benefits expense increased $7.0 million, or 14%, in the first quarter of 2011 compared to the first quarter of 2010 primarily as a result of a $1.0 million increase in bonus and commissions as variable pay based revenue increased (primarily our mortgage banking and wealth management businesses), a $4.0 million increase in salaries caused by the addition of employees from the five FDIC-assisted transactions and larger staffing as the Company grows and a $2.0 million increase from employee benefits (primarily health plan and payroll taxes related).

Professional fees include legal, audit and tax fees, external loan review costs and normal regulatory exam assessments. Professional fees for the first quarter of 2011 were $3.5 million, an increase of $439,000, or 14%, compared to the same period in 2010. These increases are primarily a result of increased legal costs related to non-performing assets and recent bank acquisitions.

OREO expenses include all costs related to obtaining, maintaining and selling of other real estate owned properties. This expense totaled $5.8 million in the first quarter of 2011, an increase of $4.5 million compared to $1.3 million in the first quarter of 2010. The increase in OREO expenses primarily related to higher valuation adjustments of properties held in OREO in the first quarter of 2011 as compared to first quarter of 2010.

ASSET QUALITY

Allowance for Credit Losses, excluding covered loans


	Three Months Ended
	March 31,
(Dollars in thousands)	2011			2010
Allowance for loan losses at beginning of period	$	113,903		$	98,277
Provision for credit losses		24,376			29,044
Other adjustments		—			1,943
Reclassification (to)/from allowance for unfunded lending-related commitments		2,116			(99	)

Charge-offs:
Commercial		9,140			4,675
Commercial real estate		13,342			20,244
Home equity		773			281
Residential real estate		1,275			406
Premium finance receivables — commercial		1,507			1,933
Premium finance receivables — life insurance		30			—
Indirect consumer		120			274
Consumer and other		160			179

Total charge-offs		26,347			27,992


Recoveries:
Commercial		266			443
Commercial real estate		338			442
Home equity		8			8
Residential real estate		2			5
Premium finance receivables — commercial		268			229
Premium finance receivables — life insurance		—			—
Indirect consumer		66			50
Consumer and other		53			47

Total recoveries		1,001			1,224

Net charge-offs		(25,346	)		(26,768	)

Allowance for loan losses at period end	$	115,049		$	102,397

Allowance for unfunded lending-related commitments at period end		2,018			3,653


Allowance for credit losses at period end	$	117,067		$	106,050


Annualized net charge-offs by category as a percentage of its own respective category’s average:
Commercial		1.85	%		1.02	%
Commercial real estate		1.57			2.42
Home equity		0.34			0.12
Residential real estate		0.91			0.32
Premium finance receivables — commercial		0.37			0.54
Premium finance receivables — life insurance		0.01			—
Indirect consumer		0.41			1.00
Consumer and other		0.42			0.48

Total loans, net of unearned income, excluding covered loans		1.04	%		1.19	%

Net charge-offs as a percentage of the provision for credit losses		103.98	%		92.16	%

Loans at period-end	$	9,561,802		$	9,070,562
Allowance for loan losses as a percentage of loans at period end		1.20	%		1.13	%
Allowance for credit losses as a percentage of loans at period end		1.22	%		1.17	%

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 relates to certain amounts that Wintrust is committed to lend but for which funds have not yet been disbursed. The allowance for unfunded lending-related commitments (separate liability account) represents the portion of the allowance for credit losses that was associated with unfunded lending-related commitments. 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). Total credit-related reserves also include the credit discounts on the purchased life insurance premium finance receivables which are netted with the loan balance. Additionally, on January 1, 2010, in conjunction with recording the securitization facility on its balance sheet, the Company established an allowance for loan losses totaling $1.9 million. This addition to the allowance for loan losses is shown as an “other adjustment to the allowance for loan losses”.

The provision for credit losses, excluding the provision for covered loan losses, totaled $24.4 million for the first quarter of 2011, $28.8 million in the fourth quarter of 2010 and $29.0 million for the first quarter of 2010. For the quarter ended March 31, 2011, net charge-offs, excluding covered loans, totaled $25.3 million compared to $23.5 million in the fourth quarter of 2010 and $26.8 million recorded in the first quarter of 2010. On a ratio basis, annualized net charge-offs as a percentage of average loans, excluding covered loans, were 1.04% in the first quarter of 2011, 0.96% in the fourth quarter of 2010, and 1.19% in the first quarter of 2010. Beginning in the third quarter of 2009, the Company committed to resolving problem credits as quickly as possible. Actions taken during this time increased OREO, net charge-offs and the provision for loan losses expenses required to maintain an appropriate level of reserves. The first quarter of 2011 amounts recorded for both net charge-offs and provision for credit losses reflect a continuation of the Company’s commitment to maintain a low level of non-performing assets.

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 increase in the allowance for credit losses from the end of the prior quarter reflects the continued changes in real estate values on certain types of credits, specifically credits with residential development collateral valuation exposure.

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

The table below shows the aging of the Company’s loan portfolio, excluding covered loans, at March 31, 2011:

As of March 31, 2011

90+ days

60-89

30-59

and still

days past

(Dollars in thousands)

Nonaccrual

accruing

due

Current

Total Loans

Loan Balances:

Commercial

26,157

150

3,450

11,645

1,896,159

1,937,561

Commercial real-estate:

Residential construction

7,891

—

1,057

3,587

78,832

91,367

Commercial construction

1,396

692

2,469

680

116,311

121,548

Land

26,974

—

7,366

12,455

183,419

230,214

Office

17,945

—

1,705

3,059

534,558

557,267

Industrial

1,251

524

1,672

8,499

483,690

495,636

Retail

12,824

—

4,994

5,810

499,486

523,114

Multi-family

5,968

—

1,107

5,059

281,729

293,863

Mixed use and other

19,752

781

7,187

19,835

995,998

1,043,553

Total commercial real-estate

94,001

1,997

27,557

58,984

3,174,023

3,356,562

Total commercial and commercial real-estate

120,158

2,147

31,007

70,629

5,070,182

5,294,123

Home equity

11,184

—

3,366

6,603

870,179

891,332

Residential real estate

4,909

—

918

5,174

333,908

344,909

Premium finance receivables — commercial

9,550

6,319

4,433

14,428

1,303,121

1,337,851

Premium finance receivables — life insurance

342

—

1,130

5,580

1,532,469

1,539,521

Indirect consumer

320

310

182

657

50,910

52,379

Consumer and other

147

185

394

100,960

101,687

Total loans, net of unearned income, excluding covered loans

146,610

8,777

41,221

103,465

9,261,729

9,561,802

Aging as a % of Loan Balance:

Commercial

1.3

—

0.2

0.6

97.9

100.0

Commercial real-estate:

Residential construction

8.6

—

1.2

3.9

86.3

100.0

Commercial construction

1.1

0.6

2.0

0.6

95.7

100.0

Land

11.7

—

3.2

5.4

79.7

100.0

Office

3.2

—

0.3

0.5

96.0

100.0

Industrial

0.3

0.1

0.3

1.7

97.6

100.0

Retail

2.5

—

1.0

1.1

95.4

100.0

Multi-family

2.0

—

0.4

1.7

95.9

100.0

Mixed use and other

1.9

0.1

0.7

1.9

95.4

100.0

Total commercial real-estate

2.8

0.1

0.8

1.8

94.5

100.0

Total commercial and commercial real-estate

2.3

—

0.6

1.3

95.8

100.0

Home equity

1.3

—

0.4

0.7

97.6

100.0

Residential real estate

1.4

—

0.3

1.5

96.8

100.0

Premium finance receivables — commercial

0.7

0.5

0.3

1.1

97.4

100.0

Premium finance receivables — life insurance

0.0

—

0.1

0.4

99.5

100.0

Indirect consumer

0.6

0.3

1.3

97.2

100.0

Consumer and other

0.1

0.0

0.2

0.4

99.3

100.0

Total loans, net of unearned income, excluding covered loans

1.5

0.1

0.4

1.1

96.9

100.0

As of March 31, 2011, $41.2 million of all loans, excluding covered loans, or 0.4%, were 60 to 89 days past due and $103.5 million, or 1.1%, were 30 to 59 days (or one payment) past due. As of December 31, 2010, $46.1 million of all loans, excluding covered loans, or 0.5%, were 60 to 89 days past due and $91.9 million, or 1.0%, 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, 2011 that are current with regard to the contractual terms of the loan agreement represent 97.6% of the total home equity portfolio. Residential real estate loans at March 31, 2011 that are current with regards to the contractual terms of the loan agreements comprise 96.8% of total residential real estate loans outstanding.

The table below shows the aging of the Company’s loan portfolio, excluding covered loans, at December 31, 2010:


As of December 31, 2010				90+ days			60-89			30-59
				and still			days past			days past
(Dollars in thousands)	Nonaccrual			accruing			due			due			Current			Total Loans
Loan Balances:
Commercial	$	16,382		$	478		$	4,755		$	16,024		$	2,011,687		$	2,049,326
Commercial real-estate:
Residential construction		10,010			—			96			1,801			84,040			95,947
Commercial construction		1,820			—			—			1,481			128,371			131,672
Land		37,602			—			6,815			11,915			203,857			260,189
Office		12,718			—			9,121			3,202			510,290			535,331
Industrial		3,480			—			686			2,276			493,859			500,301
Retail		3,265			—			4,088			3,839			499,335			510,527
Multi-family		4,794			—			1,573			3,062			281,525			290,954
Mixed use and other		20,274			—			8,481			15,059			969,272			1,013,086

Total commercial real-estate		93,963			—			30,860			42,635			3,170,549			3,338,007

Total commercial and commercial real-estate		110,345			478			35,615			58,659			5,182,236			5,387,333

Home equity		7,425			—			2,181			7,098			897,708			914,412
Residential real estate		6,085			—			1,836			8,224			337,191			353,336
Premium finance receivables — commercial		8,587			8,096			6,076			16,584			1,226,157			1,265,500
Premium finance receivables — life insurance		354			—			—			—			1,521,532			1,521,886
Indirect consumer		191			318			301			918			49,419			51,147
Consumer and other		252			1			109			379			105,531			106,272

Total loans, net of unearned income, excluding covered loans	$	133,239		$	8,893		$	46,118		$	91,862		$	9,319,774		$	9,599,886


Aging as a % of Loan Balance:
Commercial		0.8	%		—	%		0.2	%		0.8	%		98.2	%		100.0	%
Commercial real-estate:
Residential construction		10.4			—			0.1			1.9			87.6			100.0
Commercial construction		1.4			—			—			1.1			97.5			100.0
Land		14.5			—			2.6			4.6			78.3			100.0
Office		2.4			—			1.7			0.6			95.3			100.0
Industrial		0.7			—			0.1			0.5			98.7			100.0
Retail		0.6			—			0.8			0.8			97.8			100.0
Multi-family		1.6			—			0.5			1.1			96.8			100.0
Mixed use and other		2.0			—			0.8			1.5			95.7			100.0

Total commercial real-estate		2.8			—			0.9			1.3			95.0			100.0

Total commercial and commercial real-estate		2.0			—			0.7			1.1			96.2			100.0

Home equity		0.8			—			0.2			0.8			98.2			100.0
Residential real estate		1.7			—			0.5			2.3			95.5			100.0
Premium finance receivables — commercial		0.7			0.6			0.5			1.3			96.9			100.0
Premium finance receivables — life insurance		0.0			—			0.0			0.0			100.0			100.0
Indirect consumer		0.4			0.6			0.6			1.8			96.6			100.0
Consumer and other		0.2			—			0.1			0.4			99.3			100.0

Total loans, net of unearned income, excluding covered loans		1.4	%		0.1	%		0.5	%		1.0	%		97.0	%		100.0	%

Non-performing Assets, excluding covered assets

The following table sets forth Wintrust’s non-performing assets, excluding covered assets, at the dates indicated.


	March 31,			December 31,			March 31,
(Dollars in thousands)	2011			2010			2010
Loans past due greater than 90 days and still accruing:
Commercial	$	150		$	478		$	—
Commercial real-estate		1,997			—			1,195
Home equity		—			—			21
Residential real-estate		—			—			—
Premium finance receivables — commercial		6,319			8,096			7,479
Premium finance receivables — life insurance		—			—			5,450
Indirect consumer		310			318			665
Consumer and other		1			1			20

Total loans past due greater than 90 days and still accruing		8,777			8,893			14,830


Non-accrual loans:
Commercial		26,157			16,382			15,331
Commercial real-estate		94,001			93,963			82,389
Home equity		11,184			7,425			7,730
Residential real-estate		4,909			6,085			5,460
Premium finance receivables — commercial		9,550			8,587			14,106
Premium finance receivables — life insurance		342			354			73
Indirect consumer		320			191			615
Consumer and other		147			252			426

Total non-accrualloans		146,610			133,239			126,130


Total non-performing loans:
Commercial		26,307			16,860			15,331
Commercial real-estate		95,998			93,963			83,584
Home equity		11,184			7,425			7,751
Residential real-estate		4,909			6,085			5,460
Premium finance receivables — commercial		15,869			16,683			21,585
Premium finance receivables — life insurance		342			354			5,523
Indirect consumer		630			509			1,280
Consumer and other		148			253			446

Total non-performing loans	$	155,387		$	142,132		$	140,960
Other real estate owned		85,290			71,214			89,009

Total non-performing assets	$	240,677		$	213,346		$	229,969


Total non-performing loans by category as a percent of its own respective category’s period-end balance:
Commercial		1.36	%		0.82	%		0.88	%
Commercial real-estate		2.86			2.81			2.51
Home equity		1.25			0.81			0.84
Residential real-estate		1.42			1.72			1.69
Premium finance receivables — commercial		1.19			1.32			1.64
Premium finance receivables — life insurance		0.02			0.02			0.45
Indirect consumer		1.20			0.99			1.54
Consumer and other		0.15			0.24			0.42

Total loans, net of unearned income		1.63	%		1.48	%		1.55	%


Total non-performing assets as a percentage of total assets		1.71	%		1.53	%		1.79	%


Allowance for loan losses as a percentage total non-performing loans		74.04	%		80.14	%		72.64	%

Non-performing Commercial and Commercial Real Estate

The commercial non-performing loan category totaled $26.3 million as of March 31, 2011 compared to $16.9 million as of December 31, 2010 and $15.3 million as of March 31, 2010. The commercial real estate non-performing loan category totaled $96.0 million as of March 31, 2011 compared to $94.0 million as of December 31, 2010 and $83.6 million as of March 31, 2010.

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 to occur upon the ultimate resolution of these credits.

Non-performing Residential Real Estate and Home Equity

Non-performing home equity and residential real estate loans totaled $16.1 million as of March 31, 2011. The balance increased $2.9 million from March 31, 2010 and $2.6 million from December 31, 2010. The March 31, 2011 non-performing balance is comprised of $4.9 million of residential real estate (22 individual credits) and $11.2 million of home equity loans (35 individual credits). On average, this is approximately four non-performing residential real estate loans and home equity loans per chartered bank within the Company. The Company believes control and collection of these loans is very manageable. At this time, management believes reserves are adequate to absorb inherent losses that may occur upon the ultimate resolution of these credits.

Non-performing Commercial Premium Finance Receivables

The table below presents the level of non-performing property and casualty premium finance receivables as of March 31, 2011 and 2010, and the amount of net charge-offs for the quarters then ended.


	March 31,			March 31,
(Dollars in thousands)	2011			2010
Non-performing premium finance receivables — commercial	$	15,869		$	21,585
- as a percent of premium finance receivables — commercial outstanding		1.19	%		1.64	%

Net charge-offs of premium finance receivables — commercial	$	1,239		$	1,704
— annualized as a percent of average premium finance receivables — commercial		0.37	%		0.54	%

Fluctuations in this category may occur due to timing and nature of account collections from insurance carriers. The Company’s underwriting standards, regardless of the condition of the economy, have remained consistent. We anticipate that net charge-offs and non-performing asset levels in the near term will continue to be at levels that are within acceptable operating ranges for this category of loans. Management is comfortable with administering the collections at this level of non-performing property and casualty premium finance receivables and believes reserves are adequate to absorb inherent losses that may occur upon the ultimate resolution of these credits.

The ratio of non-performing commercial premium finance receivables fluctuates throughout the year due to the nature and timing of canceled account collections from insurance carriers. Due to the nature of collateral for commercial premium finance receivables, it customarily takes 60-150 days to convert the collateral into cash. Accordingly, the level of non-performing commercial premium finance receivables is not necessarily indicative of the loss inherent in the portfolio. In the event of default, Wintrust has the power to cancel the insurance policy and collect the unearned portion of the premium from the insurance carrier. In the event of cancellation, the cash returned in payment of the unearned premium by the insurer should generally be sufficient to cover the receivable balance, the interest and other charges due. Due to notification requirements and processing time by most insurance carriers, many receivables will become delinquent beyond 90 days while the insurer is processing the return of the unearned premium. Management continues to accrue interest until maturity as the unearned premium is ordinarily sufficient to pay-off the outstanding balance and contractual interest due.

Nonperforming Loans Rollforward

The table below presents a summary of non-performing loans, excluding covered loans, as of March 31, 2011 and 2010 as well as the change in balance during each respective period:


	Three Months Ended
	March 31,			March 31,
(Dollars in thousands)	2011			2010
Balance at beginning of period	$	142,132		$	131,804
Additions, net		56,168			45,803
Return to performing status		(1,175	)		(3,087	)
Payments received		(1,589	)		(1,300	)
Transfer to OREO		(22,425	)		(27,246	)
Charge-offs		(14,100	)		(12,199	)
Net change for niche loans ⁽¹⁾		(3,624	)		7,185

Balance at end of period	$	155,387		$	140,960


⁽¹⁾		This includes activity for premium finance receivables, mortgages held for investment by Wintrust Mortgage and indirect consumer loans.

Restructured Loans

The table below presents a summary of restructured loans for the respective period, presented by loan category and accrual status:


	March 31,		December 31,		March 31,
(Dollars in thousands)	2011		2010		2010
Accruing:
Commercial	$	12,620	$	14,163	$	12,593
Commercial real estate		55,202		65,419		50,523
Residential real estate		1,560		1,562		2,169

Total accrual	$	69,382	$	81,144	$	65,285


Non-accrual: ⁽¹⁾
Commercial	$	5,582	$	3,865	$	—
Commercial real estate		21,174		15,947		4,096
Residential real estate		431		234		—

Total non-accrual	$	27,187	$	20,046	$	4,096


Total restructured loans:
Commercial	$	18,202	$	18,028	$	12,593
Commercial real estate		76,376		81,366		54,619
Residential real estate		1,991		1,796		2,169

Total restructured loans	$	96,569	$	101,190	$	69,381


⁽¹⁾		Included in total non-performing loans.

At March 31, 2011, the Company had $96.6 million in loans with modified terms. The $96.6 million in modified loans represents 121 credit relationships in which economic concessions were granted to certain borrowers to better align the terms of their loans with their current ability to pay. These actions were taken on a case-by-case basis working with these borrowers to find a concession that would assist them in retaining their businesses or their homes and attempt to keep these loans in an accruing status for the Company.

Subsequent to its restructuring, any restructured loan with a below market rate concession will remain classified by the Company as a restructured loan for its duration. All restructured loans were reviewed for collateral impairment at March 31, 2011 and approximately $8.3 million of collateral impairment was present on restructured loans classified as non-

accrual and appropriately reserved for through the Company’s normal reserving methodology in the Company’s allowance for loan losses.

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, 2011 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)	2011			2010			2010
Balance at beginning of period	$	71,214		$	76,654		$	80,163
Disposals/resolved		(11,515	)		(21,904	)		(10,994	)
Transfers in at fair value, less costs to sell		28,865			18,812			20,152
Fair value adjustments		(3,274	)		(2,348	)		(312	)

Balance at end of period	$	85,290		$	71,214		$	89,009


	Period End
	March 31,		December 31,		March 31,
Balance by Property Type	2011		2010		2010
Residential real estate	$	10,570	$	5,694	$	9,476
Residential real estate development		17,808		17,781		34,392
Commercial real estate		56,912		47,739		45,141

Total	$	85,290	$	71,214	$	89,009

The following table provides a comparative analysis for the period end balances of the covered asset components, any changes in the allowance for covered loan losses and the contractual aging of the loans in the covered loan portfolio.

Covered Assets

March 31,

December 31,

March 31,

(Dollars in thousands)

2011

2010

Period End Balances:

Loans

430,452

334,353

—

Other real estate owned

37,143

19,583

—

FDIC Indemnification asset

124,785

118,182

—

Total covered assets

592,380

472,118

—

Allowance for Covered Loan Losses Rollforward:

Balance at beginning of period

—

Provision for covered loan losses

968

—

Loans charged-off

—

Recoveries of loans charged-off

—

Net charge-offs

—

Other adjustments — increase to indemnification asset

3,876

Balance at end of period

4,844

—

Accretable Yield Activity:

Accretable yield, beginning balance

39,809

38,866

—

Acquisitions

7,107

—

Accretable yield amortized to interest income ⁽¹⁾

(14,159

)

(4,042

)

—

Increase in expected cash flows ⁽²⁾

58,575

4,985

—

Accretable yield, ending balance

91,332

39,809

—


⁽¹⁾		Does not reflect offsetting amounts of $7.1 million recorded against interest income in the first quarter of 2011 as a result of reductions to the indemnification assets.
⁽²⁾		Represents reclassifications to/from non-accretable discount, increases/decreases in interest cash flows due to prepayments and/or changes in interest rates.

The following table presents a summary of the discount components for the life insurance premium finance portfolio purchase as of March 31, 2011 and shows the changes in the balances from March 31, 2010.

Purchased Loan Portfolio

Summary of Acquisition


				Credit
				discounts -
				non-
	Accretable			accretable
(Dollars in thousands)	discounts			discounts
Balances at March 31, 2010	$	58,037		$	33,990
- Accretion (effective yield method)		(4,810	)		—
- Accretion recognized as accounts prepay		(3,434	)		(3,418	)
- Reclassification from nonaccretable to accretable		1,986			(1,986	)
- Discount used for loans written off		—			(369	)

Balances at June 30, 2010	$	51,779		$	28,217

- Accretion (effective yield method)		(5,139	)		—
- Accretion recognized as accounts prepay		(1,672	)		(1,680	)
- Reclassification from accretable to nonaccretable		(52	)		52
- Discount used for loans written off		—			(190	)

Balances at September 30, 2010	$	44,916		$	26,399

- Accretion (effective yield method)		(6,873	)		—
- Accretion recognized as accounts prepay		(4,591	)		(3,181	)
- Reclassification from accretable to nonaccretable		(137	)		137
- Discount used for loans written off		—			(128	)

Balances at December 31, 2010	$	33,315		$	23,227

- Accretion (effective yield method)		(6,418	)		—
- Accretion recognized as accounts prepay		(1,538	)		(1,096	)
- Reclassification from nonaccretable to accretable		184			(184	)
- Recovery of discount used for loans written off		—			200

Balances at March 31, 2011	$	25,543		$	22,147

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, North Shore Community Bank & Trust Company in Wilmette, Libertyville Bank & Trust Company, Barrington Bank & Trust Company, Crystal Lake Bank & Trust Company, Northbrook Bank & Trust Company, Advantage National Bank in Elk Grove Village, Village Bank & Trust in Arlington Heights, Beverly Bank & Trust Company 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, Bloomingdale, Buffalo Grove, Cary, Chicago, Clarendon Hills, Deerfield, Downers Grove, Frankfort, Geneva, Glencoe, Glen Ellyn, Gurnee, Grayslake, Highland Park, Highwood, Hoffman Estates, Island Lake, Lake Bluff, Lake Villa, Lincoln Park, Lindenhurst, McHenry, Mokena, Mount Prospect, Mundelein, Naperville, North Chicago, Northfield, Palatine, Prospect Heights, Ravenswood, Ravinia, Riverside, Rogers Park, Roselle, Sauganash, Skokie, Spring Grove, Vernon Hills, Wauconda, Western Springs, Willowbrook, Winnetka and Wood Dale and in Delafield, Elm Grove, Madison, Wales, Wisconsin.

Additionally, the Company operates various non-bank subsidiaries. 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. 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 Corporation 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. Wintrust Capital Management provides money management services and advisory services to individual accounts. Advanced Investment Partners, LLC is an investment management firm specializing in the active management of domestic equity investment strategies. The Chicago Trust Company, a trust subsidiary, allows Wintrust to service customers’ trust and investment needs at each banking location. Wintrust Information Technology Services Company provides information technology support, item capture and statement preparation services to the Wintrust subsidiaries.

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 2010 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;


	•		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;

	•		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;

	•		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;

	•		changes in capital requirements resulting from Basel II and III initiatives;

	•		increases in the Company’s FDIC insurance premiums, or the collection of special assessments by the FDIC;

	•		losses incurred in connection with repurchases and indemnification payments related to mortgages;

	•		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);

	•		delinquencies or fraud with respect to the Company’s premium finance business;

	•		failure to identify and complete favorable acquisitions in the future or unexpected difficulties or developments related to the integration of recent or future acquisitions;

	•		unexpected difficulties and losses related to FDIC-assisted acquisitions, including those resulting from our loss-sharing arrangements with the FDIC;

	•		credit downgrades among commercial and life insurance providers that could negatively affect the value of collateral securing the Company’s premium finance loans;

	•		any negative perception of the Company’s reputation or financial strength;

	•		the loss of customers as a result of technological changes allowing consumers to complete their financial transactions without the use of a bank;

	•		the ability of the Company to attract and retain senior management experienced in the banking and financial services industries;

	•		the Company’s ability to comply with covenants under its securitization facility and credit facility;

	•		unexpected difficulties or unanticipated developments related to the Company’s strategy of de novo bank formations and openings, which typically require over 13 months of operations before becoming profitable due to the impact of organizational and overhead expenses, the startup phase of generating deposits and the time lag typically involved in redeploying deposits into attractively priced loans and other higher yielding earning assets;

	•		changes in accounting standards, rules and interpretations and the impact on the Company’s financial statements;

	•		adverse effects on our operational systems resulting from failures, human error or tampering;

	•		significant litigation involving the Company; and

	•		the ability of the Company to receive dividends from its subsidiaries.

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 or on behalf of Wintrust. 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 release revisions to these forward-looking statements or reflect events or circumstances after the date of this 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 1:00 p.m. (CT) Wednesday, April 20, 2011 regarding first quarter 2011 results. Individuals interested in listening should call (877) 363-5049 and enter Conference ID #59204020. A simultaneous audio-only web cast and replay of the conference call may be accessed via the Company’s web site at (http://www.wintrust.com), Investor News and Events, Presentations & Conference Calls. The text of the first quarter 2011 earnings press release will be available on the home page of the Company’s website at (http://www.wintrust.com) and at the Investor News and Events, Press Releases link on its website.

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,
	2011			2010			2010			2010			2010
Selected Financial Condition Data (at end of period):
Total assets	$	14,080,180		$	13,980,156		$	14,100,368		$	13,708,560		$	12,839,978
Total loans, excluding covered loans		9,561,802			9,599,886			9,461,155			9,324,163			9,070,562
Total deposits		10,915,169			10,803,673			10,962,239			10,624,742			9,724,870
Junior subordinated debentures		249,493			249,493			249,493			249,493			249,493
Total shareholders’ equity		1,453,253			1,436,549			1,398,912			1,384,736			1,364,832

Selected Statements of Income Data:
Net interest income		109,614			112,677			102,980			104,314			95,865
Net revenue ⁽¹⁾		150,501			157,138			157,636			154,750			138,472
Core pre-tax earnings ⁽²⁾		48,799			58,666			48,074			47,728			42,076
Net income		16,402			14,205			20,098			13,009			16,017
Net income (loss) per common share — Basic	$	0.44		$	(0.06	)	$	0.49		$	0.26		$	0.43
Net income (loss) per common share — Diluted	$	0.36		$	(0.06	)	$	0.47		$	0.25		$	0.41

Selected Financial Ratios and Other Data:
Performance Ratios:
Net interest margin ⁽²⁾		3.48	%		3.46	%		3.22	%		3.43	%		3.38	%
Non-interest income to average assets		1.18	%		1.24	%		1.56	%		1.51	%		1.37	%
Non-interest expense to average assets		2.84	%		2.97	%		2.85	%		2.78	%		2.70	%
Net overhead ratio ⁽³⁾		1.66	%		1.73	%		1.28	%		1.26	%		1.33	%
Efficiency ratio^{(2) (4)}		65.05	%		67.48	%		67.01	%		59.72	%		60.59	%
Return on average assets		0.47	%		0.40	%		0.57	%		0.39	%		0.52	%
Return on average common equity		4.49	%		(0.66)	%		5.44	%		2.98	%		4.93	%
Average total assets	$	14,018,525		$	14,199,351		$	14,015,757		$	13,390,537		$	12,590,817
Average total shareholders’ equity		1,437,869			1,442,754			1,391,507			1,371,689			1,196,191
Average loans to average deposits ratio		91.2	%		89.0	%		88.7	%		91.0	%		94.6	%
Average loans to average deposits ratio (including covered loans)		94.2			92.1			91.7			93.0			94.6

*Common Share Data at end of period:*
Market price per common share	$	36.75		$	33.03		$	32.41		$	33.34		$	37.21
Book value per common share ⁽²⁾	$	33.70		$	32.73		$	35.70		$	35.33		$	34.76
Tangible common book value per share ⁽²⁾	$	26.65		$	25.80		$	26.34		$	25.96		$	25.39
Common shares outstanding		34,947,251			34,864,068			31,143,740			31,084,298			31,044,449
Other Data at end of period:⁽⁹⁾
Leverage Ratio⁽⁵⁾		10.3	%		10.1	%		10.0	%		10.2	%		10.8	%
Tier 1 Capital to risk-weighted assets ⁽⁵⁾		12.8	%		12.5	%		12.7	%		13.0	%		13.4	%
Total capital to risk-weighted assets⁽⁵⁾		14.1	%		13.8	%		14.1	%		14.3	%		14.9	%
Tangible Common Equity ratio (TCE) ^{(2) (8)}		8.0	%		8.0	%		5.9	%		6.0	%		6.3	%
Allowance for credit losses ⁽⁶⁾	$	117,067		$	118,037		$	112,807		$	108,716		$	106,050
Credit discounts on purchased premium
finance receivables — life insurance⁽⁷⁾		22,147			23,227			26,399			28,216			33,990
Non-performing loans		155,387			142,132			134,323			135,401			140,960
Allowance for credit losses to total loans ⁽⁶⁾		1.22	%		1.23	%		1.19	%		1.17	%		1.17	%
Non-performing loans to total loans		1.63	%		1.48	%		1.42	%		1.45	%		1.55	%
Number of:
Bank subsidiaries		15			15			15			15			15
Non-bank subsidiaries		8			8			8			8			8
Banking offices		88			86			85			85			78


⁽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⁾		The efficiency ratio is calculated by dividing total non-interest expense by tax-equivalent net revenue (less securities gains or losses). A lower ratio indicates more efficient revenue generation.

⁽⁵⁾		Capital ratios for current quarter-end are estimated.

⁽⁶⁾		The allowance for credit losses includes both the allowance for loan losses and the allowance for unfunded lending-related commitments, but excluding the allowance for covered loan losses.

⁽⁷⁾		Represents the credit discounts on purchased life insurance premium finance loans.

⁽⁸⁾		Total shareholders’ equity minus preferred stock and total intangible assets divided by total assets minus total intangible assets

⁽⁹⁾		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)	2011			2010			2010			2010			2010

Assets
Cash and due from banks	$	140,919		$	153,690		$	155,067		$	123,712		$	106,501
Federal funds sold and securities purchased under resale agreements		33,575			18,890			88,913			28,664			15,393
Interest-bearing deposits with other banks		946,193			865,575			1,224,584			1,110,123			1,222,323
Available-for-sale securities, at fair value		1,710,321			1,496,302			1,324,179			1,418,035			1,205,919
Trading account securities		2,229			4,879			4,935			38,261			39,938
Federal Home Loan Bank and Federal Reserve Bank stock, at cost		85,144			82,407			80,445			79,300			74,001
Brokerage customer receivables		25,361			24,549			25,442			24,291			20,978
Mortgage loans held-for-sale, at fair value		92,151			356,662			307,231			222,703			149,897
Mortgage loans held-for-sale, at lower of cost or market		2,335			14,785			13,209			15,278			6,152
Loans, net of unearned income, excluding covered loans		9,561,802			9,599,886			9,461,155			9,324,163			9,070,562
Covered loans		430,452			334,353			353,840			275,563			—

Total loans		9,992,254			9,934,239			9,814,995			9,599,726			9,070,562
Less: Allowance for loan losses		115,049			113,903			110,432			106,547			102,397
Less: Allowance for covered loan losses		4,844			—			—			—			—

Net loans		9,872,361			9,820,336			9,704,563			9,493,179			8,968,165
Premises and equipment, net		369,785			363,696			353,445			346,806			348,182
FDIC indemnification asset		124,785			118,182			161,640			114,102			—
Accrued interest receivable and other assets		381,025			366,438			365,496			374,172			363,676
Trade date securities receivable		—			—			—			28,634			27,850
Goodwill		281,940			281,190			278,025			278,025			278,025
Other intangible assets		12,056			12,575			13,194			13,275			12,978

Total assets	$	14,080,180		$	13,980,156		$	14,100,368		$	13,708,560		$	12,839,978


Liabilities and Shareholders’ Equity
Deposits:
Non-interest bearing	$	1,279,256		$	1,201,194		$	1,042,730		$	953,814		$	871,830
Interest bearing		9,635,913			9,602,479			9,919,509			9,670,928			8,853,040

Total deposits		10,915,169			10,803,673			10,962,239			10,624,742			9,724,870
Notes payable		1,000			1,000			1,000			1,000			1,000
Federal Home Loan Bank advances		409,386			423,500			414,832			415,571			421,775
Other borrowings		250,032			260,620			241,522			218,424			218,079
Secured borrowings — owed to securitization investors		600,000			600,000			600,000			600,000			600,000
Subordinated notes		50,000			50,000			55,000			55,000			60,000
Junior subordinated debentures		249,493			249,493			249,493			249,493			249,493
Trade date securities payable		10,000			—			2,045			200			62,017
Accrued interest payable and other liabilities		141,847			155,321			175,325			159,394			137,912

Total liabilities		12,626,927			12,543,607			12,701,456			12,323,824			11,475,146


Shareholders’ Equity:
Preferred stock		49,672			49,640			287,234			286,460			285,642
Common stock		34,947			34,864			31,145			31,084			31,044
Surplus		967,587			965,203			682,318			680,261			677,090
Treasury stock		(74	)		—			(51	)		(4	)		—
Retained earnings		404,580			392,354			394,323			381,969			373,903
Accumulated other comprehensive (loss) income		(3,459	)		(5,512	)		3,943			4,966			(2,847	)

Total shareholders’ equity		1,453,253			1,436,549			1,398,912			1,384,736			1,364,832

Total liabilities and shareholders’ equity	$	14,080,180		$	13,980,156		$	14,100,368		$	13,708,560		$	12,839,978

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)	2011			2010			2010		2010			2010

Interest income
Interest and fees on loans	$	136,543		$	144,652		$	137,902	$	135,800		$	129,542
Interest bearing deposits with banks		936			1,342			1,339		1,215			1,274
Federal funds sold and securities purchased under resale agreements		32			39			35		34			49
Securities		9,540			7,236			7,438		11,218			11,012
Trading account securities		13			11			19		343			21
Federal Home Loan Bank and Federal Reserve Bank stock		550			512			488		472			459
Brokerage customer receivables		166			170			180		166			139

Total interest income		147,780			153,962			147,401		149,248			142,496

Interest expense
Interest on deposits		23,956			27,853			31,088		31,626			33,212
Interest on Federal Home Loan Bank advances		3,958			4,038			4,042		4,094			4,346
Interest on notes payable and other borrowings		2,630			1,631			1,411		1,439			1,462
Interest on secured borrowings — owed to securitization investors		3,040			3,089			3,167		3,115			2,995
Interest on subordinated notes		212			233			265		256			241
Interest on junior subordinated debentures		4,370			4,441			4,448		4,404			4,375

Total interest expense		38,166			41,285			44,421		44,934			46,631

Net interest income		109,614			112,677			102,980		104,314			95,865
Provision for credit losses		25,344			28,795			25,528		41,297			29,044

Net interest income after provision for credit losses		84,270			83,882			77,452		63,017			66,821

Non-interest income
Wealth management		10,236			10,108			8,973		9,193			8,667
Mortgage banking		11,631			22,686			20,980		7,985			9,727
Service charges on deposit accounts		3,311			3,346			3,384		3,371			3,332
Gains on available-for-sale securities, net		106			159			9,235		46			392
Gain on bargain purchases		9,838			250			6,593		26,494			10,894
Trading (losses) gains		(440	)		611			210		(1,617	)		5,961
Other		6,205			7,301			5,281		4,964			3,634

Total non-interest income		40,887			44,461			54,656		50,436			42,607

Non-interest expense
Salaries and employee benefits		56,099			59,031			57,014		50,649			49,072
Equipment		4,264			4,384			4,203		4,046			3,896
Occupancy, net		6,505			5,927			6,254		6,033			6,230
Data processing		3,523			4,388			3,891		3,669			3,407
Advertising and marketing		1,614			1,881			1,650		1,470			1,314
Professional fees		3,546			4,775			4,555		3,957			3,107
Amortization of other intangible assets		689			719			701		674			645
FDIC insurance		4,518			4,572			4,642		5,005			3,809
OREO expenses, net		5,808			7,384			4,767		5,843			1,337
Other		11,543			13,140			12,046		11,317			11,121

Total non-interest expense		98,109			106,201			99,723		92,663			83,938

Income before taxes		27,048			22,142			32,385		20,790			25,490
Income tax expense		10,646			7,937			12,287		7,781			9,473

Net income	$	16,402		$	14,205		$	20,098	$	13,009		$	16,017

Preferred stock dividends and discount accretion	$	1,031		$	16,175		$	4,943	$	4,943		$	4,943

Net income (loss) applicable to common shares	$	15,371		$	(1,970	)		$15,155	$	8,066		$	11,074

Net income (loss) per common share — Basic	$	0.44		$	(0.06	)	$	0.49	$	0.26		$	0.43

Net income (loss) per common share — Diluted	$	0.36		$	(0.06	)	$	0.47	$	0.25		$	0.41

Cash dividends declared per common share	$	0.09		$	—		$	0.09	$	—		$	0.09

Weighted average common shares outstanding		34,928			32,015			31,117		31,074			25,942
Dilutive potential common shares		7,794			—			988		1,267			1,139

Average common shares and dilutive common shares		42,722			32,015			32,105		32,341			27,081

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)	2011			2010			2010			2010			2010
Balance:
Commercial	$	1,937,561		$	2,049,326		$	1,952,791		$	1,827,618		$	1,749,895
Commercial real estate		3,356,562			3,338,007			3,331,498			3,347,823			3,333,157
Home equity		891,332			914,412			919,824			922,305			924,993
Residential real-estate		344,909			353,336			342,009			332,673			322,984
Premium finance receivables — commercial		1,337,851			1,265,500			1,323,934			1,346,985			1,317,822
Premium finance receivables — life insurance		1,539,521			1,521,886			1,434,994			1,378,657			1,233,573
Indirect consumer ⁽¹⁾		52,379			51,147			56,575			69,011			83,136
Consumer and other		101,687			106,272			99,530			99,091			105,002

Total loans, net of unearned income, excluding covered loans	$	9,561,802		$	9,599,886		$	9,461,155		$	9,324,163		$	9,070,562
Covered loans		430,452			334,353			353,840			275,563			—

Total loans, net of unearned income	$	9,992,254		$	9,934,239		$	9,814,995		$	9,599,726		$	9,070,562


Mix:
Commercial		19	%		21	%		20	%		19	%		19	%
Commercial real estate		34			34			34			35			37
Home equity		9			9			9			10			10
Residential real-estate		4			3			3			3			4
Premium finance receivables — commercial		13			13			13			14			14
Premium finance receivables — life insurance		15			15			15			14			14
Indirect consumer ⁽¹⁾		1			1			1			1			1
Consumer and other		1			1			1			1			1
Total loans, net of unearned income, excluding covered loans		96	%		97	%		96	%		97	%		100	%
Covered loans		4			3			4			3			—

Total loans, net of unearned income		100	%		100	%		100	%		100	%		100	%


		⁽¹⁾ Includes autos, boats, snowmobiles and other indirect consumer loans.

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)	2011			2010			2010			2010			2010
Balance:
Non-interest bearing	$	1,279,256		$	1,201,194		$	1,042,730		$	953,814		$	871,830
NOW		1,526,955			1,561,507			1,551,749			1,560,733			1,448,857
Wealth Management deposits ⁽¹⁾		659,194			658,660			710,435			694,830			690,919
Money Market		1,844,416			1,759,866			1,746,168			1,722,729			1,586,830
Savings		749,681			744,534			713,823			594,753			558,770
Time certificates of deposit		4,855,667			4,877,912			5,197,334			5,097,883			4,567,664

Total deposits	$	10,915,169		$	10,803,673		$	10,962,239		$	10,624,742		$	9,724,870


Mix:
Non-interest bearing		12	%		11	%		10	%		9	%		9	%
NOW		14			15			14			15			15
Wealth Management deposits ⁽¹⁾		6			6			6			6			7
Money Market		17			16			16			16			16
Savings		7			7			7			6			6
Time certificates of deposit		44			45			47			48			47

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 customes of The Chicago Trust Company 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)	2011			2010			2010			2010			2010
Net interest income	$	110,028		$	113,083		$	103,396		$	104,775		$	96,311
Call option income		2,470			1,075			703			169			289

Net interest income including call option income	$	112,498		$	114,158		$	104,099		$	104,944		$	96,600


Yield on earning assets		4.68	%		4.72	%		4.59	%		4.91	%		5.01	%
Rate on interest-bearing liabilities		1.39			1.43			1.55			1.65			1.82

Rate spread		3.29	%		3.29	%		3.04	%		3.26	%		3.19	%
Net free funds contribution		0.19			0.17			0.18			0.17			0.19

Net interest margin		3.48			3.46			3.22			3.43			3.38
Call option income		0.08			0.03			0.02			0.01			0.01

Net interest margin including call option income		3.56	%		3.49	%		3.24	%		3.44	%		3.39	%

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


	Three Months Ended			Years Ended
	March 31,			December 31,
(Dollars in thousands)	2011			2010			2009			2008			2007
Net interest income	$	110,028		$	417,565		$	314,096		$	247,054		$	264,777
Call option income		2,470			2,236			1,998			29,024			2,628

Net interest income including call option income	$	112,498		$	419,801		$	316,094		$	276,078		$	267,405


Yield on earning assets		4.68	%		4.80	%		5.07	%		5.88	%		7.21	%
Rate on interest-bearing liabilities		1.39			1.61			2.29			3.31			4.39

Rate spread		3.29	%		3.19	%		2.78	%		2.57	%		2.82	%
Net free funds contribution		0.19			0.18			0.23			0.24			0.29

Net interest margin		3.48			3.37			3.01			2.81			3.11
Call option income		0.08			0.02			0.02			0.33			0.03

Net interest margin including call option income		3.56	%		3.39	%		3.03	%		3.14	%		3.14	%

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)	2011			2010			2010			2010			2010
Liquidity management assets	$	2,632,012		$	2,844,351		$	2,802,964		$	2,613,179		$	2,384,122
Other earning assets		27,718			29,676			34,263			62,874			26,269
Loans, net of unearned income		9,849,309			9,777,435			9,603,561			9,356,033			9,150,078
Covered loans		326,571			337,690			325,751			210,030			—

Total earning assets	$	12,835,610		$	12,989,152		$	12,766,539		$	12,242,116		$	11,560,469

Allowance for loan losses		(118,610	)		(116,447	)		(113,631	)		(108,764	)		(107,257	)
Cash and due from banks		152,264			151,562			154,078			137,531			113,514
Other assets		1,149,261			1,175,084			1,208,771			1,119,654			1,024,091

Total assets	$	14,018,525		$	14,199,351		$	14,015,757		$	13,390,537		$	12,590,817


Interest-bearing deposits	$	9,542,637		$	9,839,223		$	9,823,525		$	9,348,541		$	8,818,012
Federal Home Loan Bank advances		416,021			415,260			414,789			417,835			429,195
Notes payable and other borrowings		266,379			244,044			232,991			217,751			225,919
Secured borrowings — owed to securitization investors		600,000			600,000			600,000			600,000			600,000
Subordinated notes		50,000			53,369			55,000			57,198			60,000
Junior subordinated notes		249,493			249,493			249,493			249,493			249,493

Total interest-bearing liabilities	$	11,124,530		$	11,401,389		$	11,375,798		$	10,890,818		$	10,382,619

Non-interest bearing deposits		1,261,374			1,148,208			1,005,170			932,046			858,875
Other liabilities		194,752			207,000			243,282			195,984			153,132
Equity		1,437,869			1,442,754			1,391,507			1,371,689			1,196,191

Total liabilities and shareholders’ equity	$	14,018,525		$	14,199,351		$	14,015,757		$	13,390,537		$	12,590,817

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


	Three Months Ended
	March 31,			December 31,			September 30,			June 30,			March 31,
	2011			2010			2010			2010			2010
Yield earned on:
Liquidity management assets		1.75	%		1.32	%		1.36	%		2.04	%		2.24	%
Other earning assets		2.65			2.45			2.37			3.28			2.53
Loans, net of unearned income		5.34			5.71			5.54			5.71			5.75
Covered loans		8.78			4.75			4.84			5.12			—

		4.68	%		4.72	%		4.59	%		4.91	%		5.01	%

Rate paid on:
Interest-bearing deposits		1.02	%		1.12	%		1.26	%		1.36	%		1.53	%
Federal Home Loan Bank advances		3.86			3.86			3.87			3.93			4.11
Notes payable and other borrowings		4.00			2.65			2.40			2.65			2.63
Secured borrowings — owed to securitization investors		2.05			2.04			2.09			2.08			2.02
Subordinated notes		1.69			1.71			1.89			1.77			1.60
Junior subordinated notes		7.01			6.97			6.98			6.98			7.01

		1.39	%		1.43	%		1.55	%		1.65	%		1.82	%

Interest rate spread		3.29	%		3.29	%		3.04	%		3.26	%		3.19	%
Net free funds/contribution		0.19			0.17			0.18			0.17			0.19

Net interest income/Net interest margin		3.48	%		3.46	%		3.22	%		3.43	%		3.38	%

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)	2011			2010		2010		2010			2010
Brokerage	$	6,325		$	6,641	$	5,806	$	5,712		$	5,554
Trust and asset management		3,911			3,467		3,167		3,481			3,113

Total wealth management		10,236			10,108		8,973		9,193			8,667

Mortgage banking		11,631			22,686		20,980		7,985			9,727
Service charges on deposit accounts		3,311			3,346		3,384		3,371			3,332
Gains on available-for-sale securities		106			159		9,235		46			392
Gain on bargain purchases		9,838			250		6,593		26,494			10,894
Trading (losses) gains		(440	)		611		210		(1,617	)		5,961
Other:
Fees from covered call options		2,470			1,074		703		169			289
Bank Owned Life Insurance		876			811		552		418			623
Administrative services		717			715		744		708			582
Miscellaneous		2,142			4,701		3,282		3,669			2,140

Total other income		6,205			7,301		5,281		4,964			3,634


Total Non-Interest Income	$	40,887		$	44,461	$	54,656	$	50,436		$	42,607

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)	2011		2010		2010		2010		2010
Salaries and employee benefits:
Salaries	$	33,135	$	31,876	$	30,537	$	28,714	$	29,083
Commissions and bonus		10,714		18,043		17,366		12,967		9,731
Benefits		12,250		9,112		9,111		8,968		10,258

Total salaries and employee benefits		56,099		59,031		57,014		50,649		49,072
Equipment		4,264		4,384		4,203		4,046		3,896
Occupancy, net		6,505		5,927		6,254		6,033		6,230
Data processing		3,523		4,388		3,891		3,669		3,407
Advertising and marketing		1,614		1,881		1,650		1,470		1,314
Professional fees		3,546		4,775		4,555		3,957		3,107
Amortization of other intangibles		689		719		701		674		645
FDIC insurance		4,518		4,572		4,642		5,005		3,809
OREO expenses, net		5,808		7,384		4,767		5,843		1,337
Other:
Commissions - 3rd party brokers		1,030		965		979		1,097		962
Postage		1,078		1,220		1,254		1,229		1,110
Stationery and supplies		840		1,069		812		761		732
Miscellaneous		8,595		9,886		9,001		8,230		8,317

Total other expense		11,543		13,140		12,046		11,317		11,121


Total Non-Interest Expense	$	98,109	$	106,201	$	99,723	$	92,663	$	83,938

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)	2011			2010			2010			2010			2010
Allowance for loan losses at beginning of period	$	113,903		$	110,432		$	106,547		$	102,397		$	98,277
Provision for credit losses		24,376			28,795			25,528			41,297			29,044
Other adjustments		—			—			—			—			1,943
Reclassification (to)/from allowance for unfunded lending-related commitments		2,116			(1,781	)		(206	)		785			(99	)

Charge-offs:
Commercial		9,140			6,060			3,076			4,781			4,675
Commercial real estate		13,342			13,591			15,727			12,311			20,244
Home equity		773			1,322			1,234			3,089			281
Residential real estate		1,275			311			116			310			406
Premium finance receivables — commercial		1,507			1,820			1,505			17,747			1,933
Premium finance receivables — life insurance		30			154			79			—			—
Indirect consumer		120			239			198			256			274
Consumer and other		160			565			288			109			179

Total charge-offs		26,347			24,062			22,223			38,603			27,992


Recoveries:
Commercial		266			268			286			143			443
Commercial real estate		338			57			197			218			442
Home equity		8			2			8			6			8
Residential real estate		2			2			3			2			5
Premium finance receivables — commercial		268			144			220			188			229
Premium finance receivables — life insurance		—			—			—			—			—
Indirect consumer		66			38			29			81			50
Consumer and other		53			8			43			33			47

Total recoveries		1,001			519			786			671			1,224


Net charge-offs		(25,346	)		(23,543	)		(21,437	)		(37,932	)		(26,768	)

Allowance for loan losses at period end	$	115,049		$	113,903		$	110,432		$	106,547		$	102,397

Allowance for unfunded lending-related commitments at period end		2,018			4,134			2,375			2,169			3,653

Allowance for credit losses at period end	$	117,067		$	118,037		$	112,807		$	108,716		$	106,050

Annualized net charge-offs by category as a percentage of its own respective category’s average:
Commercial		1.85	%		1.11	%		0.60	%		1.04	%		1.02	%
Commercial real estate		1.57			1.66			1.84			1.45			2.42
Home equity		0.34			0.57			0.53			1.34			0.12
Residential real estate		0.91			0.17			0.07			0.23			0.32
Premium finance receivables — commercial		0.37			0.54			0.39			5.46			0.54
Premium finance receivables — life insurance		0.01			0.04			0.02			—			—
Indirect consumer		0.41			1.51			1.08			0.92			1.00
Consumer and other		0.42			1.98			1.01			0.27			0.48

Total loans, net of unearned income		1.04	%		0.96	%		0.89	%		1.63	%		1.19	%

Net charge-offs as a percentage of the provision for credit losses		103.98	%		81.76	%		83.97	%		91.85	%		92.16	%

Loans at period-end	$	9,561,802		$	9,599,886		$	9,461,155		$	9,324,163		$	9,070,562
Allowance for loan losses as a percentage of loans at period end		1.20	%		1.19	%		1.17	%		1.14	%		1.13	%
Allowance for credit losses as a percentage of loans at period end		1.22	%		1.23	%		1.19	%		1.17	%		1.17	%

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)	2011			2010			2010			2010			2010
Loans past due greater than 90 days and still accruing:
Commercial	$	150		$	478		$	—		$	99		$	—
Commercial real-estate		1,997			—			—			2,248			1,195
Home equity		—			—			—			—			21
Residential real-estate		—			—			—			—			—
Premium finance receivables — commercial		6,319			8,096			6,853			6,350			7,479
Premium finance receivables — life insurance		—			—			1,222			1,923			5,450
Indirect consumer		310			318			355			579			665
Consumer and other		1			1			2			3			20

Total loans past due greater than 90 days and still accruing		8,777			8,893			8,432			11,202			14,830

Non-accrual loans:
Commercial		26,157			16,382			19,444			17,741			15,331
Commercial real-estate		94,001			93,963			83,340			82,984			82,389
Home equity		11,184			7,425			6,144			7,149			7,730
Residential real-estate		4,909			6,085			6,644			4,436			5,460
Premium finance receivables — commercial		9,550			8,587			9,082			11,389			14,106
Premium finance receivables — life insurance		342			354			222			—			73
Indirect consumer		320			191			446			438			615
Consumer and other		147			252			569			62			426

Total non-accrual loans		146,610			133,239			125,891			124,199			126,130

Total non-performing loans:
Commercial		26,307			16,860			19,444			17,840			15,331
Commercial real-estate		95,998			93,963			83,340			85,232			83,584
Home equity		11,184			7,425			6,144			7,149			7,751
Residential real-estate		4,909			6,085			6,644			4,436			5,460
Premium finance receivables — commercial		15,869			16,683			15,935			17,739			21,585
Premium finance receivables — life insurance		342			354			1,444			1,923			5,523
Indirect consumer		630			509			801			1,017			1,280
Consumer and other		148			253			571			65			446

Total non-performing loans	$	155,387		$	142,132		$	134,323		$	135,401		$	140,960
Other real estate owned		85,290			71,214			76,654			86,420			89,009

Total non-performing assets	$	240,677		$	213,346		$	210,977		$	221,821		$	229,969


Total non-performing loans by category as a percent of its own respective category’s period-end balance:
Commercial		1.36	%		0.82	%		1.00	%		0.98	%		0.88	%
Commercial real-estate		2.86			2.81			2.50			2.55			2.51
Home equity		1.25			0.81			0.67			0.78			0.84
Residential real-estate		1.42			1.72			1.94			1.33			1.69
Premium finance receivables — commercial		1.19			1.32			1.20			1.32			1.64
Premium finance receivables — life insurance		0.02			0.02			0.10			0.14			0.45
Indirect consumer		1.20			0.99			1.42			1.47			1.54
Consumer and other		0.15			0.24			0.57			0.07			0.42

Total loans		1.63	%		1.48	%		1.42	%		1.45	%		1.55	%


Total non-performing assets as a percentage of total assets		1.71	%		1.53	%		1.50	%		1.62	%		1.79	%


Allowance for loan losses as a percentage total non-performing loans		74.04	%		80.14	%		82.21	%		78.69	%		72.64	%

WINTRUST FINANCIAL CORP - FORM 8-K - EX-99.1 - April 20, 2011

Attached files