Wintrust Financial 8K Reports Third Quarter 2009 Results | WTFC 28 Oct 09

Exhibit 99.1

Wintrust Financial Corporation
727 North Bank Lane, Lake Forest, Illinois 60045

News Release



FOR IMMEDIATE RELEASE		October 27, 2009

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
THIRD QUARTER 2009 RESULTS

LAKE FOREST, ILLINOIS—Wintrust Financial Corporation (“Wintrust” or “the Company”) (Nasdaq WTFC) announced net income of $32.0 million or $1.07 per diluted common share for the quarter ended September 30, 2009. This compares with earnings of $6.5 million ($0.06 per diluted common share) for the second quarter of 2009 and a $2.4 million loss (($0.13) per diluted common share) for the third quarter of 2008.

Edward J. Wehmer, President and Chief Executive Officer, commented “We are pleased to report both solid corporate earnings and strong progress on all strategic fronts during a very active quarter. The acquisition of the life insurance premium finance portfolio during the quarter resulted in both immediate and prospective financial gains. The securitization of a portion of our commercial premium finance loan portfolio, also completed this quarter, enhanced our regulatory capital position, our balance sheet liquidity and our earnings.

Mr. Wehmer noted, “The Company’s net interest margin for the quarter increased to 3.25% from 2.91% in the second quarter and 2.74% in the third quarter of 2008 reflecting both positive results from deposit and asset re-pricing and solid balance sheet growth at reasonable and commensurate pricing levels. Fee and other income remained relatively strong while expenses, other than credit related expenses, were in line with expectations.”

Commenting on credit, Mr. Wehmer said, “Wintrust recorded a provision for loan losses of $91 million to accommodate net charge-offs approximating $80 million during the quarter. In addition to these charge-offs, we also recorded approximately $10 million of expense related to write downs of other real estate owned. Approximately $29 million of the quarter’s charge-offs relate to loans where specific reserves had been previously established. Approximately $12 million of the charge-offs related to either dispositions or new problem assets. The remaining $39 million related to continued downward revaluation of collateral values primarily related to real estate development. This revaluation, along with the $10 million other real-estate owned charge can be attributed to the Company’s commitment to liquidate problem assets in a very aggressive manner

and, more importantly, to recent changes in overall market conditions. As an increasing amount of troubled assets are being liquidated in the market as a whole, appraised values are dropping accordingly, reflecting the adverse impact of the additional supply. These reduced valuations are further supported by liquidation bids we are receiving on our problem asset portfolio. The charges taken reflect this along with our intention to dispose of problem assets on an expedited basis.

Quarter-end non-performing loans include approximately $17 million of administrative past due loans which have been made current by the borrower. Further, non-performing assets have been reduced by an additional $8 million after September 30, 2009 as of the date of this earnings release. We anticipate continued aggressive disposition of problem assets in the fourth quarter. Our allowance for loan losses increased to $95 million or 1.15% of total loans. Adding our reserve for unfunded lending-related commitments and credit discounts on purchased assets brings the Company’s total credit reserves to $134 million or 1.62% of total loans.”

Mr. Wehmer summarized, “We continue to focus on increasing core earnings and clearing our balance sheet of problem assets. Significant core earnings opportunities remain in the areas of deposit re-pricing, core franchise growth and liquidity redeployment. At quarter end, the Company had approximately $1 billion in overnight liquid assets and was operating at an 84% loan to deposit ratio — just below the low end of the desired 85% to 90% range. Redeploying a portion of those liquid assets into safe, higher yielding loans is a priority.”

He added, “We adopted a long-term strategy in 2006 which anticipated a negative credit cycle. Our goal was to be in a position to not just make it through the cycle but to do so in a manner which would allow us to take advantage of the opportunities which result from these occurrences - specifically a material dislocation of assets, banks and people in the overall market. To date, we have had good success and we will continue to seek out additional opportunities on all three fronts while continuing to build a strong core franchise.”

Net income for the nine months ended September 30, 2009 was $44.9 million, or $1.25 per diluted common share compared to $18.5 million or $0.75 per diluted common share for the same period in 2008. Earnings per diluted common share in the first nine months of 2009 compared to the first nine months of 2008 were reduced by preferred share dividends including discount accretion, related to our issuances of preferred stock in the second half of 2008, reducing comparative net income available to common shareholders by $14.1 million, or $0.58 per diluted common share.

Total assets of $12.1 billion at September 30, 2009 increased $776 million from June 30, 2009 and $2.3 billion from September 30, 2008. The $776 million of asset growth in the third quarter of 2009 was concentrated

in liquidity management assets. Total deposits as of September 30, 2009 were $9.8 billion, an increase of $656 million from June 30, 2009 and $2.0 billion from September 30, 2008. The $656 million of deposit growth in the third quarter of 2009 was well distributed amongst all deposit types with $277 million from certificates of deposit, $314 million from NOW, savings and money markets, $16 million from wealth management and $49 million from non-interest bearing deposits. Only $17 million of the $277 million of certificate of deposit growth was due to an increase in brokered certificates of deposits. At the end of the second quarter of 2009, in anticipation of completing the securitization in the third quarter of 2009, the Company reclassified $520 million of premium finance receivables to a held-for-sale classification to comply with accounting requirements related to assets that are held with the intent to sell. At the end of the second quarter, the Company’s loans held-for-sale included $301 million of residential mortgages and $520 million of premium finance receivables compared to only $193 million of residential mortgages at September 30, 2009. Total loans, including loans held for sale, grew to $8.5 billion as of September 30, 2009, an increase of $52 million, over the $8.4 billion balance as of June 30, 2009 and an increase of $1.1 billion over the September 30, 2008 balance of $7.4 billion. During the third quarter of 2009 the Company completed the acquisition of the life insurance premium finance receivables portfolio and the securitization of commercial premium finance receivables (see “Acquisitions” and “Securitization” for the impact of these transactions). The Company’s loan portfolio includes a wide variety of loan types. Please see the tables included in the remainder of this release for additional disclosures regarding the components of the commercial and commercial real estate portfolio, the allowance for credit losses and loan portfolio aging statistics.

Total shareholders’ equity was $1.1 billion, or a book value of $34.10 per common share, at September 30, 2009, compared to $809 million, or a book value of $32.07 per common share, at September 30, 2008.

Wintrust’s key operating measures and growth rates for the third quarter of 2009 as compared to the sequential and linked quarters are shown in the table below:


										% or			% or
										basis point (bp)			basis point (bp)
										change			change
	Three Months Ended									from			from
	September 30,			June 30,			September 30,			2nd Quarter			3rd Quarter
($ in thousands, except per share data)	2009			2009			2008			2009⁽⁴⁾			2008
Net income	$	31,995		$	6,549		$	(2,448	)		389	%		1,407	%
Net income per common share — diluted	$	1.07		$	0.06		$	(0.13	)		1,683	%		923	%

Net revenue⁽¹⁾	$	238,343		$	117,949		$	82,810			102	%		188	%
Net interest income	$	87,663		$	72,497		$	60,680			21	%		44	%

Net interest margin⁽²⁾		3.25	%		2.91	%		2.74	%		34	bp		51	bp
Net overhead ratio⁽³⁾		(1.95	)%		1.41	%		1.65	%		(336	)bp		(360	)bp
Return on average assets		1.08	%		0.24	%		(0.10	)%		84	bp		118	bp
Return on average common equity		13.79	%		0.79	%		(1.59	)%		1,300	bp		1,538	bp

At end of period
Total assets	$	12,136,021		$	11,359,536		$	9,864,920			27	%		23	%
Total loans	$	8,275,257		$	7,595,476		$	7,322,545			36	%		13	%
Total loans, including loans held-for-sale	$	8,468,512		$	8,416,576		$	7,390,943			15	%		2	%
Total deposits	$	9,847,163		$	9,191,332		$	7,829,527			28	%		26	%
Total equity	$	1,106,082		$	1,065,076		$	809,331			15	%		37	%


⁽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 total average 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, balance sheet growth rates are most often expressed in terms of an annual rate like 20%. As such, 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” and then choosing “Supplemental Financial Info.”

Impacting Comparative Financial Results: Acquisitions, Securitization and

Stock Offerings/Regulatory Capital

Acquisitions

OnJuly 28, 2009 the Company announced that its indirect, wholly-owned subsidiary, First Insurance Funding Corp. (“FIFC”) completed the purchase of a majority of the U.S. life insurance premium finance assets of A.I. Credit Corp. and A.I. Credit Consumer Discount Company (“the seller”), subsidiaries of American International Group, Inc. In doing so, FIFC acquired one of the largest life insurance premium finance portfolios in the industry, as well as certain other assets related to the life insurance premium finance business and the assumption of certain related liabilities. Subsequent to post-closing adjustments, an aggregate unpaid principal balance of $949.3 million was purchased for $685.3 million in cash. At closing, a portion of the portfolio, with an aggregate unpaid principal balance of approximately $317 million, and a corresponding portion of the purchase price of approximately $230 million were placed in escrow, pending the receipt of required third party consents. To the extent any of the required consents are not obtained prior to October 28, 2010, the portion of the portfolio for which such required consents are not obtained will be reassumed by the seller, and the corresponding portion of the purchase price will be returned to FIFC. Also, as a part of this purchase, an aggregate of $84.4 million of additional life insurance premium finance assets were available for future purchase by FIFC subject to satisfying certain conditions. As discussed below, on October 2, 2009, upon the satisfaction of these conditions, the Company completed the purchase of the majority of these additional loans.

The purchase was accounted for as a business combination as required by FASB Statement of Financial Accounting Standards No. 141 (revised 2007) which is now part of Accounting Standards Codification (ASC) 805 Business Combinations (“ASC 805”), which became effective for the Company beginning on January 1, 2009. ASC 805 establishes principles and requirements for the acquirer in a business combination, including the recognition and measurement of the identifiable assets acquired, the liabilities assumed and any non-controlling interest in the acquired entity as of the acquisition date; the recognition and measurement of the goodwill acquired in the business combination or gain from a bargain purchase as of the acquisition date; and the determination of additional disclosures needed to enable users of the financial statements to evaluate the nature and financial effects of the business combination. Under ASC 805, nearly all acquired assets and liabilities assumed are required to be recorded at fair value at the acquisition date, including loans. ASC 805 eliminated recognition at the acquisition date of an allowance for loan losses on acquired loans; rather, credit-related factors are now

incorporated directly into the fair value of the loans. Other significant changes include recognizing transaction costs and most restructuring costs as expenses when incurred. The accounting requirements of ASC 805 are applied on a prospective basis for all transactions completed after the effective date and early adoption was not permitted. Under ASC 805 a gain is recorded equal to the amount by which the fair value of assets purchased exceeded the fair value of liabilities assumed. The Company recognized a $113.1 million gain in the third quarter of 2009 relating to all of the loans it acquired which have all contingencies removed as of September 30, 2009. This gain is shown as a component of non-interest income on our statement of income. The difference between the fair value of the loans acquired and the outstanding principal balance of these loans represents a discount of $113.3 million and is comprised of two components, an accretable component totaling $74.8 million and a non-accretable component totaling $38.5 million. The accretable component will be recognized into interest income using the effective yield method over its estimated remaining life. The non-accretable portion will be evaluated each quarter and if the loans’ credit related conditions improve, a relative portion will be transferred to the accretable component and accreted over future periods. In the event of a prepayment, accretion of both the accretable and non-accretable component is accelerated into the quarter in which a specific loan prepays in whole. Currently, we have not established an allowance for loan losses relating to the portfolio purchased in this transaction. If credit related conditions deteriorate, an allowance related to these loans will be established as part of our provision for loan losses. The impact related to this transaction is included in Wintrust’s consolidated financial results only since the effective date of acquisition.

OnOctober 2, 2009, the conditions were satisfied in relation to the majority of the additional life insurance premium finance assets which were available for purchase and FIFC purchased $83.4 million of the $84.4 million of life insurance premium finance assets available for an aggregate purchase price of $60.5 million. The Company anticipates recording an additional $14.5 million bargain purchase gain relating to this additional purchase, all of which will be immediately recognizable in the fourth quarter. The difference between the fair value of these loans acquired on October 2, 2009 and the outstanding principal balance of theses loans represents a discount of $8.4 million and is comprised of two components, an accretable component totaling $5.7 million and a non-accretable component totaling $2.7 million. These discount components will be accounted in a similar fashion as the discounts described above. The impact related to this transaction will be included in Wintrust’s consolidated financial results only since the effective date of acquisition.

OnApril 20, 2009 Wayne Hummer Asset Management Company completed its previously announced agreement to purchase certain assets and assume certain liabilities of Advanced Investment Partners, LLC (“AIP”). AIP is an investment management firm specializing in the active management of domestic equity investment strategies. The impact related to the AIP transaction is included in Wintrust’s consolidated financial results only since the effective date of acquisition.

OnDecember 23, 2008, the Company announced the acquisition by Wintrust Mortgage Corporation of certain assets and the assumption of certain liabilities of the mortgage banking business of Professional Mortgage Partners (“PMP”) of Downers Grove, Illinois. PMP was founded in 1999 and had approximately $1.6 billion in annual mortgage originations in 2008. The terms of the cash transaction were not disclosed, however, a significant portion of the net purchase price for the PMP assets is conditioned upon certain future profitability measures. The impact related to the PMP transaction is included in Wintrust’s consolidated financial results only since the effective date of acquisition.

Securitization

OnSeptember 11, 2009 Wintrust’s indirect, wholly-owned subsidiary, FIFC Premium Funding I, LLC (the “Issuer”), closed on the sale of $600,000,000 aggregate principal amount of its Series 2009-A Premium Finance Asset Backed Notes, Class A (the “Notes”). The Notes were issued in a securitization transaction sponsored by First Insurance Funding Corp. This is an off-balance sheet financing transaction for the Company.

The Notes bear interest at an annual rate equal to one-month LIBOR plus 1.45% and have an expected average term of 2.93 years; provided, however, that the entire unpaid balance of the Notes shall be due and payable in full on February 17, 2014. At the time of issuance, the Notes were eligible collateral under the Federal Reserve Bank of New York’s Term Asset-Backed Securities Loan Facility (“TALF”). The Notes are rated Aaa by Moody’s and AAA by Standard & Poor’s. The Issuer’s obligations under the Notes are secured by revolving loans made to buyers of property and casualty insurance policies to finance the related premiums payable by the buyers to the insurance companies for the policies. The premium finance loans will be transferred from time to time by FIFC to FIFC Funding, I LLC (the “Depositor”) and by the Depositor to the Issuer.

The Notes have not been and will not be registered under the Securities Act of 1933, as amended (the “Securities Act”), or any applicable state securities laws and may not be offered or sold in the United States

without registration under the Securities Act or any applicable exemption from registration. The Notes were sold in a private placement to qualified institutional buyers only pursuant to an exemption under Rule 144A of the Securities Act. The Notes are restricted securities and may only be resold to qualified institutional buyers in a transaction meeting the requirements of Rule 144A and may not otherwise be reoffered, resold, pledged or otherwise transferred.

As a result of this transaction the Company recognized a gain of $3.6 million in the third quarter of 2009. A total of $695 million in premium finance property and casualty receivables were initially transferred into the securitization. The Company retained interests of approximately $84 million and a sellers interest in loans of $11 million. Approximately $50 million of the retained interests are classified as debt securities on the Company’s balance sheet and the remainder is classified in other assets. In the event FIFC transfers loans to the Depositor in the fourth quarter, additional gains should be recognized.

Stock Offerings/Regulatory Capital

The Company announced on December 19, 2008 that it had received the proceeds from the $250 million investment in Wintrust by the U.S. Treasury Department. The investment was made as part of the U.S. Treasury Department’s Capital Purchase Program, which is designed to infuse capital into the nation’s healthy banks in order to expand the flow of credit to U.S. consumers and businesses on competitive terms to promote the sustained growth and vitality of the U.S. economy.

The investment by the U.S. Treasury Department was comprised of $250 million in preferred shares, with a warrant to purchase 1,643,295 shares of Wintrust common stock at a per share exercise price of $22.82 and a term of 10 years. If declared, dividends on the senior preferred stock are payable quarterly in arrears at a rate of 5% annually for the first five years and 9% thereafter. This investment can, with the approval of the Federal Reserve, be repurchased. The Company filed a shelf registration statement to fulfill the requirement of the Capital Purchase Program that the U.S. Department of Treasury be able to publicly sell the preferred shares and warrant it purchased from Wintrust.

On August 26, 2008, the Company sold $50 million ($49.4 million net of issuance costs) of non-cumulative perpetual convertible preferred stock in a private transaction. If declared, dividends on the preferred stock are payable quarterly in arrears at a rate of 8.00% per annum. The shares are convertible into common stock

at the option of the holder at a price per share of $25.72. On and after August 26, 2010, the preferred stock will be subject to mandatory conversion into common stock under certain circumstances.

Financial Performance Overview – Third Quarter of 2009

For the third quarter of 2009, net interest income totaled $87.7 million, an increase of $27.0 million as compared to the third quarter of 2008 and an increase of $15.2 million as compared to the second quarter of 2009. Average earning assets for the third quarter of 2009 increased by $1.9 billion compared to the third quarter of 2008. Earning asset growth over the past 12 months was primarily a result of the $1.3 billion increase in average loans and $534 million increase in liquidity management assets. The average earning asset growth of $1.9 billion over the past 12 months was funded by a $1.1 billion increase in the average balances of savings, NOW, MMA and Wealth Management deposits, an increase in the average balance of net free funds of $354 million, an increase in the average balance of brokered certificates of deposit of $166 million, an increase in the average balance of retail certificates of deposit of $442 million offset by a decrease in the average balance of wholesale borrowings of $168 million. At September 30, 2009, $913 million of retail deposits were held in the Company’s MaxSafe^® suite of products (certificates of deposit, MMA and NOW). MaxSafe^® is an innovative investment alternative that provides up to 15 times the FDIC insurance security of a traditional banking deposit or a total of $3.75 million for an individual interest-bearing account, by capitalizing on the Company’s multiple banking charters and depositing a customer’s funds across all 15 of the Company’s community banks.

The net interest margin for the third quarter of 2009 was 3.25%, compared to 2.74% in the third quarter of 2008 and 2.91% in the second quarter of 2009. The increase in the net interest margin in the third quarter of 2009 when compared to the second quarter of 2009 is attributable to the acquisition of the life insurance premium finance portfolio and lower costs of interest-bearing deposits. In the third quarter of 2009, the yield on loans increased 40 basis points and the rate on interest-bearing deposits decreased 22 basis points compared to the second quarter of 2009. The bulk of the increase in yield on loans is attributable to premium finance receivables. Management believes opportunities during the remainder of 2009 for increasing credit spreads in commercial loan portfolio and re-pricing of maturities of retail certificates of deposits should contribute to continued net interest margin expansion.

Non-interest income totaled $150.7 million in the third quarter of 2009, increasing $128.6 million, or 581%, compared to the third quarter of 2008 and increasing $105.2 million, or 919% on an annualized basis,

compared to the second quarter of 2009. The increase, in comparison to both prior periods, was primarily attributable to the activities described earlier under “Acquisitions” and “Securitization.” Another component of non-interest income with meaningful changes between comparable quarters was mortgage banking revenue. Mortgage banking revenue increased $8.7 million when compared to the third quarter of 2008 and decreased $9.4 million when compared to the second quarter of 2009. These changes were primarily attributable to varying levels of activity in mortgage loans originated for sale to the secondary market during 2009. Mortgages originated for sale totaled over $960 million in the third quarter of 2009 compared to over $1.5 billion in the second quarter of 2009 and $344 million in the third quarter of 2008.

Non-interest expense totaled $92.6 million in the third quarter of 2009, increasing $29.4 million, or 46%, compared to the third quarter of 2008 and $8.3 million, or 39% on an annualized basis, compared to the second quarter of 2009. The increase compared to the second quarter of 2009 was attributable to a $9.2 million increase in other real estate expenses (including losses recognized on sales), a $2.1 million increase in salaries and employee benefits, and a $1.2 million increase in professional fees, offset by a $4.8 million decrease in the FDIC deposit insurance expense as the second quarter of 2009 contained the industry-wide special assessment.

Financial Performance Overview – First Nine Months of 2009

The net interest margin for the first nine months of 2009 was 2.98%, compared to 2.83% in the first nine months of 2008. The increase in the net interest margin in the first nine months of 2009 when compared to the first nine months of 2008 is primarily attributable to the positive impact of controlling interest-bearing deposit costs. The yield on earning assets decreased by 86 basis points compared to the first nine months of 2008 while the rate paid on total interest-bearing deposits decreased by 110 basis points compared to the first nine months of 2008.

Non-interest income totaled $232.6 million in the first nine months of 2009, increasing $152.3 million, or 190%, compared to the first nine months of 2008. The increase was primarily attributable to the $113.1 million bargain purchase gain and an increase of $33.9 million in mortgage banking revenue. The increase in mortgage banking revenue is primarily attributable to a significant increase in mortgage loans originated and sold to the secondary market. Mortgages originated for sale totaled over $3.7 billion in the first nine months of 2009 compared to over $1.3 billion in the first nine months of 2008. During the first nine months of 2009, the Company recognized an increase of $22.9 million in trading income. Partially offsetting the increase in trading income was

the decrease of $19.6 million on fees from covered call options compared to the first nine months of 2008. The majority of the increase in trading income resulted from an increase in the market value of certain collateralized mortgage obligations held as trading assets. The Company purchased these securities at a significant discount during the first quarter of 2009. These securities have increased in value since their purchase due to market spreads tightening, increased mortgage prepayments due to a favorable mortgage rate environment and the resultant refinancing activity taking place in the market and lower than projected default rates.

Non-interest expense totaled $253.8 million in the first nine months of 2009, increasing $62.5 million, or 33%, compared to the first nine months of 2008. The change compared to the first nine months of 2008 was attributable to a $29.5 million increase in salaries and employee benefits and a $12.5 million increase in FDIC insurance expense related to deposit insurance rate increases, the one-time industry-wide FDIC deposit insurance special assessment in the second quarter of 2009 and growth in the assessable deposit base. Additionally, $12.3 million of increased expenses related to other real-estate owned (including losses on sales) and $3.4 million from increased professional fees, primarily as a result of the elevated level of non-performing assets contributed to the $62.5 million non-interest expense growth. The $29.5 million increase in salaries and employee benefits is largely attributable to an increase in variable pay (commissions) of $15.6 million primarily as a result of the higher mortgage loan origination volumes.

Financial Performance Overview – Credit Quality

Non-performing loans totaled $231.7 million, or 2.80% of total loans, at September 30, 2009, compared to $238.2 million, or 3.14% of total loans, at June 30, 2009 and $113.1 million, or 1.54% of total loans, at September 30, 2008. Other real-estate owned (“OREO”) of $40.6 million at September 30, 2009 was down slightly compared to June 30, 2009 and increased $28.1 million compared to September 30, 2008. During the third quarter of 2009, 48 individual properties, representing 20 lending relationships, were acquired by the Company via foreclosure or deed in lieu of foreclosure. The fair value of these properties totaled $17.1 million. Changes in fair value of properties held and properties sold reduced the OREO balance by $17.9 million during the third quarter of 2009.

The provision for credit losses totaled $91.2 million for the third quarter of 2009 compared to $23.7 million for the second quarter of 2009 and $24.1 million in the third quarter of 2008. Net charge-offs for the third quarter totaled 365 basis points on an annualized basis compared to 84 basis points on an annualized basis in the

third quarter of 2008 and 63 basis points on an annualized basis in the second quarter of 2009. The provision for credit losses totaled $129.3 million for the first nine months of 2009 compared to $43.0 million for the first nine months of 2008. Net charge-offs for the first nine months totaled 166 basis points on an annualized basis compared to 50 basis points on an annualized basis in the first nine months of 2008.

The allowance for credit losses at September 30, 2009 totaled $98.2 million and increased to 1.19% of total loans compared to 86.7 million or 1.14% of total loans at June 30, 2009 and $66.8 million, or 0.91% of total loans at September 30, 2008. At September 30, 2009, an additional $36.2 million of non-accretable discounts on the purchased life insurance premium finance receivables remains. Including this amount as part of the allowance for credit losses would increase the allowance for credit losses as a percentage of total loans outstanding to 1.62% at September 30, 2009.

WINTRUST FINANCIAL CORPORATION
SELECTED FINANCIAL HIGHLIGHTS


	Three Months Ended						Nine Months Ended
	September 30,						September 30,
(Dollars in thousands, except per share data)	2009			2008			2009			2008
Selected Financial Condition Data (at end of period):
Total assets	$	12,136,021		$	9,864,920
Total loans		8,275,257			7,322,545
Total deposits		9,847,163			7,829,527
Junior subordinated debentures		249,493			249,537
Total shareholders’ equity		1,106,082			809,331

Selected Statements of Income Data:
Net interest income	$	87,663		$	60,680		$	224,942		$	181,822
Net revenue⁽¹⁾		238,343			82,810			457,501			262,127
Income before taxes		54,587			(4,518	)		74,402			27,914
Net income		31,995			(2,448	)		44,902			18,533
Net income per common share — Basic		1.14			(0.13	)		1.26			0.76
Net income per common share — Diluted		1.07			(0.13	)		1.25			0.75

Selected Financial Ratios and Other Data:
Performance Ratios:
Net interest margin⁽²⁾		3.25	%		2.74	%		2.98	%		2.83	%
Non-interest income to average assets		5.07			0.89			2.79			1.11
Non-interest expense to average assets		3.11			2.54			3.04			2.65
Net overhead ratio⁽³⁾		(1.95	)		1.65			0.25			1.54
Efficiency ratio^{(2) (4)}		38.69			76.64			55.15			72.28
Return on average assets		1.08			(0.10	)		0.54			0.26
Return on average equity		13.79			(1.59	)		5.16			3.20
Average total assets	$	11,797,520		$	9,881,554		$	11,154,193		$	9,646,060
Average total shareholders’ equity		1,070,095			765,892			1,066,447			756,801
Average loans to average deposits ratio		90.5	%		94.1	%		91.9	%		94.5	%

*Common Share Data at end of period:*
Market price per common share	$	27.96		$	29.35
Book value per common share	$	34.10		$	32.07
Common shares outstanding		24,103,068			23,693,799
*Other Data at end of period:*
Leverage ratio⁽⁵⁾		7.7	%		8.1	%
Tier 1 capital to risk-weighted assets⁽⁵⁾		8.8	%		9.2	%
Total capital to risk-weighted assets⁽⁵⁾		12.1	%		10.7	%
Allowance for credit losses⁽⁶⁾	$	98,225		$	66,820
Credit discounts on purchased loans⁽⁷⁾		36,195			—
Total credit reserves		134,420			66,820
Non-performing loans		231,659			113,041
Allowance for credit losses to total loans⁽⁶⁾		1.19	%		0.91	%
Total credit reserves to total loans⁽⁸⁾		1.62	%		0.91	%
Non-performing loans to total loans		2.80	%		1.54	%
Number of:
Bank subsidiaries		15			15
Non-bank subsidiaries		8			8
Banking offices		78			79

(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 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 revenues (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 lending-related commitments.

(7)		Represents the remaining non-accretable portion of the discounts on the purchased life insurance premium finance loans that were purchased.

(8)		The sum of allowance for credit losses and credit discounts on purchased loans divided by total loans outstanding plus the credit discounts on purchased loans.

WINTRUST FINANCIAL CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CONDITION


	(Unaudited)						(Unaudited)
	September 30,			December 31,			September 30,
(In thousands)	2009			2008			2008

Assets
Cash and due from banks	$	128,898		$	219,794		$	158,201
Federal funds sold and securities purchased under resale agreements		22,863			226,110			35,181
Interest bearing deposits with banks		1,168,362			123,009			4,686
Available-for-sale securities, at fair value		1,434,248			784,673			1,469,500
Trading account securities		29,204			4,399			2,243
Brokerage customer receivables		19,441			17,901			19,436
Loans held-for-sale		193,255			61,116			68,398
Loans, net of unearned income		8,275,257			7,621,069			7,322,545
Less: Allowance for loan losses		95,096			69,767			66,327

Net loans		8,180,161			7,551,302			7,256,218
Premises and equipment, net		352,890			349,875			349,388
Accrued interest receivable and other assets		315,806			240,664			209,970
Trade date securities receivable		—			788,565			—
Goodwill		276,525			276,310			276,310
Other intangible assets		14,368			14,608			15,389

Total assets	$	12,136,021		$	10,658,326		$	9,864,920


Liabilities and Shareholders’ Equity
Deposits:
Non-interest bearing	$	841,668		$	757,844		$	717,587
Interest bearing		9,005,495			7,618,906			7,111,940

Total deposits		9,847,163			8,376,750			7,829,527

Notes payable		1,000			1,000			42,025
Federal Home Loan Bank advances		433,983			435,981			438,983
Other borrowings		252,071			336,764			296,391
Subordinated notes		65,000			70,000			75,000
Junior subordinated debentures		249,493			249,515			249,537
Trade date securities payable		—			—			2,000
Accrued interest payable and other liabilities		181,229			121,744			122,126

Total liabilities		11,029,939			9,591,754			9,055,589


Shareholders’ equity:
Preferred stock		284,061			281,873			49,379
Common stock		26,965			26,611			26,548
Surplus		580,988			571,887			551,453
Treasury stock		(122,437	)		(122,290	)		(122,290	)
Retained earnings		342,873			318,793			318,066
Accumulated other comprehensive loss		(6,368	)		(10,302	)		(13,825	)

Total shareholders’ equity		1,106,082			1,066,572			809,331

Total liabilities and shareholders’ equity	$	12,136,021		$	10,658,326		$	9,864,920

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


	Three Months Ended						Nine Months Ended
	September 30,						September 30,
(In thousands, except per share data)	2009			2008			2009			2008

Interest income
Interest and fees on loans	$	126,448		$	108,495		$	343,637		$	336,251
Interest bearing deposits with banks		778			27			2,205			215
Federal funds sold and securities purchased under resale agreements		106			197			233			1,303
Securities		14,106			17,599			44,252			50,233
Trading account securities		7			23			86			69
Brokerage customer receivables		132			228			372			834

Total interest income		141,577			126,569			390,785			388,905

Interest expense
Interest on deposits		42,806			53,405			132,261			168,697
Interest on Federal Home Loan Bank advances		4,536			4,583			13,492			13,696
Interest on notes payable and other borrowings		1,779			2,661			5,401			8,331
Interest on subordinated notes		333			786			1,341			2,716
Interest on junior subordinated debentures		4,460			4,454			13,348			13,643

Total interest expense		53,914			65,889			165,843			207,083

Net interest income		87,663			60,680			224,942			181,822
Provision for credit losses		91,193			24,129			129,329			42,985

Net interest income after provision for credit losses		(3,530	)		36,551			95,613			138,837

Non-interest income
Wealth management		7,501			7,044			20,310			22,680
Mortgage banking		13,204			4,488			52,032			18,120
Service charges on deposit accounts		3,447			2,674			9,600			7,612
Gain on sales of commercial premium finance receivables		3,629			456			4,147			2,163
(Losses) gains on available-for-sale securities, net		(412	)		920			(910	)		(553	)
Gain on bargain purchase		113,062			—			113,062			—
Other		10,249			6,548			34,318			30,283

Total non-interest income		150,680			22,130			232,559			80,305

Non-interest expense
Salaries and employee benefits		48,088			35,823			138,923			109,471
Equipment		4,069			4,050			12,022			12,025
Occupancy, net		5,884			5,666			17,682			16,971
Data processing		3,226			2,850			9,578			8,566
Advertising and marketing		1,488			1,343			4,003			3,709
Professional fees		4,089			2,195			9,843			6,490
Amortization of other intangible assets		677			781			2,040			2,348
Other		25,042			10,491			59,679			31,648

Total non-interest expense		92,563			63,199			253,770			191,228

Income before taxes		54,587			(4,518	)		74,402			27,914
Income tax expense		22,592			(2,070	)		29,500			9,381

Net income	$	31,995		$	(2,448	)	$	44,902		$	18,533

Preferred stock dividends and discount accretion		4,668			544			14,668			544

Net income applicable to common shares	$	27,327		$	(2,992	)	$	30,234		$	17,989

Net income per common share — Basic	$	1.14		$	(0.13	)	$	1.26		$	0.76

Net income per common share — Diluted	$	1.07		$	(0.13	)	$	1.25		$	0.75

Cash dividends declared per common share	$	0.09		$	0.18		$	0.27		$	0.36



Weighted average common shares outstanding		24,052			23,644			23,958			23,590
Dilutive potential common shares		2,493			—			323			525

Average common shares and dilutive common shares		26,545			23,644			24,281			24,115

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) and the efficiency ratio. 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 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.

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 is shown below:


	Three Months Ended						Nine Months Ended
	September 30,						September 30,
(Dollars in thousands)	2009			2008			2009			2008

(A) Interest income (GAAP)	$	141,577		$	126,569		$	390,785		$	388,905
Taxable-equivalent adjustment:
– Loans		93			142			360			499
– Liquidity management assets		413			423			1,314			1,362
– Other earning assets		9			12			30			31

Interest income — FTE	$	142,092		$	127,146		$	392,489		$	390,797
(B) Interest expense (GAAP)		53,914			65,889			165,843			207,083

Net interest income — FTE	$	88,178		$	61,257		$	226,646		$	183,714

(C) Net interest income (GAAP) (A minus B)	$	87,663		$	60,680		$	224,942		$	181,822

(D) Net interest margin (GAAP)		3.23	%		2.71	%		2.95	%		2.80	%
Net interest margin — FTE		3.25	%		2.74	%		2.98	%		2.83	%
(E) Efficiency ratio (GAAP)		38.77	%		77.18	%		55.36	%		72.80	%
Efficiency ratio — FTE		38.69	%		76.64	%		55.15	%		72.28	%

Loans

Loan Portfolio Mix and Growth Rates


										% Growth
										From			From
	September 30,			December 31,			September 30,			December 31,			September 30,
(Dollars in thousands)	2009			2008			2008			2008⁽¹⁾			2008
Balance:
Commercial and commercial real estate	$	5,035,859		$	4,778,664		$	4,673,682			7	%		8	%
Home equity		928,548			896,438			837,127			5			11
Residential real estate		281,151			262,908			247,203			9			14
Premium finance receivables — commercial		752,032			1,243,858			1,164,256			(53	)		(35	)
Premium finance receivables — life insurance		1,045,653			102,728			41,120			NM			NM
Indirect consumer loans⁽²⁾		115,528			175,955			199,845			(46	)		(42	)
Other loans		116,486			160,518			159,312			(36	)		(27	)

Total loans, net of unearned income	$	8,275,257		$	7,621,069		$	7,322,545			11	%		13	%

Mix:
Commercial and commercial real estate		61	%		63	%		64	%
Home equity		11			12			11
Residential real estate		4			3			4
Premium finance receivables — commercial		9			16			16
Premium finance receivables — life insurance		13			2			1
Indirect consumer loans⁽²⁾		1			2			3
Other loans		1			2			1

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


(1)		Annualized

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

NM = Not Meaningful

Commercial and Commercial Real Estate Loans

As of September 30, 2009


								> 90 Days		Allowance
			% of					Past Due		For Credit
			Total			Non-		and Still		Losses
(Dollars in thousands)	Balance		Loans			accrual		Accruing		Allocation
Commercial:
Commercial and Industrial	$	1,345,111		16.3	%	$	16,689	$	605	$	21,799
Franchise		107,447		1.3			—		—		1,619
Mortgage warehouse lines of credit		73,816		0.9			—		—		985
Community Advantage — homeowner associations		60,146		0.7			—		—		145
Aircraft		41,606		0.5			—		153		164
Other		15,595		0.2			2,346		—		424

Total Commercial	$	1,643,721		19.9	%	$	19,035	$	758	$	25,136


Commercial Real Estate:
Land and development	$	1,041,641		12.6	%	$	103,573	$	10,090	$	25,231
Office		544,772		6.6			10,029		—		7,079
Industrial		466,725		5.6			8,476		355		7,012
Retail		570,589		6.9			10,698		12,161		7,846
Mixed use and other		768,411		9.3			14,915		13		10,686

Total Commercial Real Estate Loans	$	3,392,138		41.0	%	$	147,691	$	22,619	$	57,854


Total Commercial and Commercial Real Estate	$	5,035,859		60.9	%	$	166,726	$	23,377	$	82,990


Commercial Real Estate-collateral location by state:
Illinois	$	2,729,454		80.5	%
Wisconsin		375,911		11.1

Total primary markets	$	3,105,365		91.6	%

Indiana		48,300		1.4
Florida		43,164		1.3
Arizona		42,226		1.2
Other (no individual state greater than 0.6%)		153,083		4.5

Total	$	3,392,138		100.0	%

DEPOSITS

Deposit Portfolio Mix and Growth Rates


										% Growth
										From			From
	September 30,			December 31,			September 30,			December 31,			September 30,
(Dollars in thousands)	2009			2008			2008			2008⁽¹⁾			2008
Balance:
Non-interest bearing	$	841,668		$	757,844		$	717,587			15	%		17	%
NOW		1,245,689			1,040,105			1,012,393			26			23
Wealth Management deposits⁽²⁾		935,740			716,178			583,715			41			60
Money market		1,468,228			1,124,068			997,638			41			47
Savings		513,239			337,808			317,108			69			62
Time certificates of deposit		4,842,599			4,400,747			4,201,086			13			15

Total deposits	$	9,847,163		$	8,376,750		$	7,829,527			23	%		26	%

Mix:
Non-interest bearing		9	%		9	%		9	%
NOW		13			12			13
Wealth Management deposits⁽²⁾		9			9			7
Money market		15			13			13
Savings		5			4			4
Time certificates of deposit		49			53			54

Total deposits		100	%		100	%		100	%


(1)		Annualized

(2)		Represents deposit balances at the Company’s subsidiary banks from brokerage customers of Wayne Hummer Investments, trust and asset management customers of Wayne Hummer Trust Company and brokerage customers from unaffiliated companies which have been placed into deposit accounts of the Banks.

Deposit Maturity Analysis

As of September 30, 2009


											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) (2)}		of Deposit		Deposits		of Deposit
1 – 3 months	$	2,087,357	$	1,981,467	$	615,898	$	1,392,088	$	6,076,810		2.38	%
4 – 6 months		—		—		121,294		851,034		972,328		2.46
7 – 9 months		—		—		—		720,427		720,427		2.61
10 – 12 months		—		—		—		605,530		605,530		2.39
13 – 18 months		—		—		198,548		668,256		866,804		2.67
19 – 24 months		—		—		—		284,965		284,965		3.54
24+ months		—		—		—		320,299		320,299		3.57

Total	$	2,087,357	$	1,981,467	$	935,740	$	4,842,599	$	9,847,163		2.62	%


(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 overall interest rates.

(2)		Wealth management deposit balances from unaffiliated companies are shown maturing in the period in which the current contractual obligation to hold these funds matures.

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 third quarter of 2009 compared to the third quarter of 2008 (linked quarters):


	For the Three Months Ended								For the Three Months Ended
	September 30, 2009								September 30, 2008
(Dollars in thousands)	Average			Interest		Rate			Average			Interest		Rate

Liquidity management assets^{(1) (2) (7)}	$	2,078,330		$	15,403		2.94	%	$	1,544,465		$	18,247		4.70	%
Other earning assets^{(2) (3) (7)}		24,874			148		2.36			21,687			262		4.81
Loans, net of unearned income^{(2) (4) (7)}		8,665,281			126,541		5.79			7,343,845			108,637		5.89

Total earning assets⁽⁷⁾	$	10,768,485		$	142,092		5.24	%	$	8,909,997		$	127,146		5.68	%

Allowance for loan losses		(85,300	)							(57,751	)
Cash and due from banks		109,645								133,527
Other assets		1,004,690								895,781

Total assets	$	11,797,520							$	9,881,554

Interest-bearing deposits	$	8,799,578		$	42,806		1.93	%	$	7,127,065		$	53,405		2.98	%
Federal Home Loan Bank advances		434,134			4,536		4.14			438,983			4,583		4.15
Notes payable and other borrowings		245,352			1,779		2.88			398,911			2,661		2.65
Subordinated notes		65,000			333		2.01			75,000			786		4.10
Junior subordinated debentures		249,493			4,460		6.99			249,552			4,454		6.98

Total interest-bearing liabilities	$	9,793,557		$	53,914		2.18	%	$	8,289,511		$	65,889		3.16	%

Non-interest bearing deposits		775,202								678,651
Other liabilities		158,666								147,500
Equity		1,070,095								765,892

Total liabilities and shareholders’ equity	$	11,797,520							$	9,881,554

Interest rate spread^{(5) (7)}							3.06	%							2.52	%
Net free funds/contribution⁽⁶⁾	$	974,928					0.19		$	620,486					0.22

Net interest income/Net interest margin⁽⁷⁾				$	88,178		3.25	%				$	61,257		2.74	%


(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 account 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 September 30, 2009 and 2008 were $515,000 and $576,000, 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 measure/ratio.


	For the Three Months Ended								For the Three Months Ended
	September 30, 2009								June 30, 2009
(Dollars in thousands)	Average			Interest		Rate			Average			Interest		Rate

Liquidity management assets^{(1) (2) (7)}	$	2,078,330		$	15,403		2.94	%	$	1,851,179		$	17,102		3.71	%
Other earning assets^{(2) (3) (7)}		24,874			148		2.36			22,694			185		3.27
Loans, net of unearned income^{(2) (4) (7)}		8,665,281			126,541		5.79			8,212,572			110,412		5.39

Total earning assets⁽⁷⁾	$	10,768,485		$	142,092		5.24	%	$	10,086,445		$	127,699		5.08	%

Allowance for loan losses		(85,300	)							(72,990	)
Cash and due from banks		109,645								118,402
Other assets		1,004,690								905,611

Total assets	$	11,797,520							$	11,037,468

Interest-bearing deposits	$	8,799,578		$	42,806		1.93	%	$	8,097,096		$	43,502		2.15	%
Federal Home Loan Bank advances		434,134			4,536		4.14			435,983			4,503		4.14
Notes payable and other borrowings		245,352			1,779		2.88			249,123			1,752		2.82
Subordinated notes		65,000			333		2.01			66,648			428		2.54
Junior subordinated debentures		249,493			4,460		6.99			249,494			4,447		7.05

Total interest-bearing liabilities	$	9,793,557		$	53,914		2.18	%	$	9,098,344		$	54,632		2.41	%

Non-interest bearing deposits		775,202								754,479
Other liabilities		158,666								117,250
Equity		1,070,095								1,067,395

Total liabilities and shareholders’ equity	$	11,797,520							$	11,037,468

Interest rate spread^{(5) (7)}							3.06	%							2.67	%
Net free funds/contribution⁽⁶⁾	$	974,928					0.19		$	988,101					0.24

Net interest income/Net interest margin⁽⁷⁾				$	88,178		3.25	%				$	73,067		2.91	%


(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 account 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 September 30, 2009 was $515,000 and for the three months ended June 30, 2009 was $570,000.

(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 measure/ratio.

The higher level of net interest income recorded in the third quarter of 2009 compared to the second quarter of 2009 was attributable to the impact of the life insurance premium finance loan purchase and the ability to raise and retain interest-bearing deposits at lower rates. Average earning asset growth of $682 million in the third quarter of 2009 compared to the second quarter of 2009 was comprised of $453 million of loan growth and $227 million of liquid management asset growth. The $682 million of average earning asset growth was primarily funded entirely by a $702 million increase in the average balances of interest-bearing deposits.

In the third quarter of 2009, the yield on loans increased 40 basis points and the rate on interest-bearing deposits decreased 22 basis points compared to the second quarter of 2009. The bulk of the increase in yield on loans is attributable to purchase of the life insurance premium finance receivables. Management believes opportunities remain for increasing credit spreads in commercial and commercial real estate loan portfolios and for lower rates from the re-pricing of maturing retail certificates of deposits, both of which should contribute to continued net interest margin expansion.

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 nine months ended September 30, 2009 compared to the nine months ended September 30, 2008:


	For the Nine Months Ended								For the Nine Months Ended
	September 30, 2009								September 30, 2008
(Dollars in thousands)	Average			Interest		Rate			Average			Interest		Rate

Liquidity management assets^{(1) (2) (7)}	$	1,923,869		$	48,004		3.34	%	$	1,493,511		$	53,114		4.75	%
Other earning assets^{(2) (3) (7)}		23,242			488		2.81			23,530			933		5.30
Loans, net of unearned income^{(2) (4) (7)}		8,244,336			343,997		5.58			7,171,467			336,750		6.27

Total earning assets⁽⁷⁾	$	10,191,447		$	392,489		5.15	%	$	8,688,508		$	390,797		6.01	%

Allowance for loan losses		(76,886	)							(54,352	)
Cash and due from banks		103,164								128,045
Other assets		936,468								883,859

Total assets	$	11,154,193							$	9,646,060


Interest-bearing deposits	$	8,217,631		$	132,261		2.15	%	$	6,927,829		$	168,697		3.25	%
Federal Home Loan Bank advances		435,359			13,492		4.14			434,528			13,696		4.21
Notes payable and other borrowings		266,264			5,401		2.71			389,882			8,331		2.85
Subordinated notes		67,198			1,341		2.63			75,000			2,716		4.76
Junior subordinated debentures		249,498			13,348		7.05			249,594			13,643		7.18

Total interest-bearing liabilities	$	9,235,950		$	165,843		2.40	%	$	8,076,833		$	207,083		3.42	%

Non-interest bearing deposits		754,666								661,787
Other liabilities		97,130								150,639
Equity		1,066,447								756,801

Total liabilities and shareholders’ equity	$	11,154,193							$	9,646,060


Interest rate spread^{(5) (7)}							2.75	%							2.59	%
Net free funds/contribution⁽⁶⁾	$	955,497					0.23		$	611,675					0.24

Net interest income/Net interest margin⁽⁷⁾				$	226,646		2.98	%				$	183,714		2.83	%


(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 account securities and securities reflects a tax-equivalent adjustment based on a marginal federal corporate tax rate of 35%. The total adjustments for the nine months ended September 30, 2009 and 2008 were $1.7 million and $1.9 million, respectively.

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

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

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

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

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

NON-INTEREST INCOME

For the third quarter of 2009, non-interest income totaled $150.7 million, an increase of $128.6 million compared to the third quarter of 2008. The increase was primarily attributable to the life insurance premium finance loan acquisition (see “Acquisitions”), the securitization transaction (see “Securitization”), an increase in mortgage banking revenue and trading income offset by lower levels of fees from covered call options. For the first nine months of 2009, non-interest income totaled $232.6 million, an increase of $152.3 million compared to the first nine months of 2008.

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


	Three Months Ended
	September 30,					$			%
(Dollars in thousands)	2009			2008		Change			Change
Brokerage	$	4,593		$	4,354		239			5
Trust and asset management		2,908			2,690		218			8

Total wealth management		7,501			7,044		457			6


Mortgage banking		13,204			4,488		8,716			194
Service charges on deposit accounts		3,447			2,674		773			29
Gain on sales of premium finance receivables		3,629			456		3,173			NM
(Losses) gains on available-for-sale securities, net		(412	)		920		(1,332	)		(145	)
Gain on bargain purchase		113,062			—		113,062			NM
Other:
Fees from covered call options		—			2,723		(2,723	)		(100	)
Bank Owned Life Insurance		552			478		74			—
Trading income		6,236			286		5,950			NM
Administrative services		527			803		(276	)		(34	)
Miscellaneous		2,934			2,258		676			30

Total other		10,249			6,548		3,701			57


Total non-interest income	$	150,680		$	22,130		128,550			NM


	Nine Months Ended
	September 30,						$			%
(Dollars in thousands)	2009			2008			Change			Change
Brokerage	$	12,693		$	14,339			(1,646	)		(11	)
Trust and asset management		7,617			8,341			(724	)		(9	)

Total wealth management		20,310			22,680			(2,370	)		(10	)


Mortgage banking		52,032			18,120			33,912			187
Service charges on deposit accounts		9,600			7,612			1,988			26
Gain on sales of premium finance receivables		4,147			2,163			1,984			92
Losses on available-for-sale securities, net		(910	)		(553	)		(357	)		65
Gain on bargain purchase		113,062			—			113,062			NM
Other:
Fees from covered call options		1,998			21,586			(19,588	)		(91	)
Bank Owned Life Insurance		1,403			1,941			(538	)		(28	)
Trading income		23,254			396			22,858			NM
Administrative services		1,463			2,271			(808	)		(36	)
Miscellaneous		6,200			4,089			2,111			52

Total other		34,318			30,283			4,035			13


Total non-interest income	$	232,559		$	80,305			152,254			189

NM = Not Meaningful

Wealth management is comprised of the trust and asset management revenue of Wayne Hummer Trust Company and the asset management fees, brokerage commissions, trading commissions and insurance product commissions at Wayne Hummer Investments and Wayne Hummer Asset Management Company. Wealth management totaled $7.5 million in the third quarter of 2009 and $7.0 million in the third quarter of 2008. Increased asset valuations due to the recent equity market improvements have helped revenue growth from trust and asset management activities.

With equity markets improving in the third quarter of 2009, wealth management did increase $617,000, or 36% on an annualized basis, over the second quarter of 2009. On a year-to-date basis, wealth management totaled $20.3 million, down $2.4 million, or 10% when compared to the same period in 2008.

Mortgage banking includes revenue from activities related to originating, selling and servicing residential real estate loans for the secondary market. For the quarter ended September 30, 2009, this revenue source totaled $13.2 million, an increase of $8.7 million when compared to the third quarter of 2008. The increase was primarily attributable to $9.3 million from gains recognized on loans sold to the secondary market offset by $601,000 from changes in the fair market value of mortgage servicing rights, valuation fluctuations of mortgage banking derivatives, fair value accounting for certain residential mortgage loans held for sale and increased recourse obligation reserves for loans previously sold. Future growth of mortgage banking is impacted by the interest rate environment and current residential housing conditions and will continue to be dependent upon both. Mortgages originated and sold totaled over $960 million in the third quarter of 2009 compared to $1.5 billion in the second quarter of 2009 and $344 million in the third quarter of 2008. The positive impact of the PMP transaction, completed at the end of 2008, contributed to mortgage banking revenue growth in all quarters of 2009. On a year-to-date basis, mortgage banking totaled $52.0 million, increasing $33.9 million when compared to the same period in 2008. Mortgages originated and sold totaled over $3.7 billion in the first nine months of 2009 compared to over $1.3 billion in the first nine months of 2008.

Service charges on deposit accounts totaled $3.4 million for the third quarter of 2009, an increase of $773,000, or 29%, when compared to the same quarter of 2008. The majority of deposit service charges relates to customary fees on overdrawn accounts and returned items. The level of service charges received is substantially below peer group levels, as management believes in the philosophy of providing high quality service without encumbering that service with numerous activity charges.

Wintrust recognized $3.6 million of gains on the securitization of premium finance receivables in the third quarter of 2009 (see “Securitization”). FIFC sold $34 million of premium finance receivables in the third quarter of 2008, recognizing $456,000 of net gains. As a result of paydowns of loans in the revolving securitization facility, the Company anticipates transferring over $300 million of property and casualty premium finance receivables to the securitization facility during the fourth quarter of 2009 and additional gains related thereto may be recognized.

The bargain purchase gain resulted from the acquisition of the life insurance premium finance receivable portfolio. See “Acquisitions” for a complete discussion of the transaction. The following table summarizes the components of this transaction:

Purchased Loan Portfolio
Summary of Acquisition


														Credit
														discounts -
	Gross		Net					Bargain						non-
	loan		purchase		Total			purchase			Accretable			accretable
(Dollars in thousands)	balance		price		discounts			gain⁽⁴⁾			discounts			discounts
Loans purchased on July 28, 2009	$	949,322	$	685,306	$	(264,016	)	$	(150,646	)	$	(74,837	)	$	(38,533	)
- Initial bargain purchase gain									99,949			—			—
- Accretion (effective yield method)									—			3,530			—
- Impact of accounts clearing escrow⁽³⁾									11,313			—			—
- Impact of accounts prepaid									—			3,925			2,338
- Non-accretable transfer to accretable									—			—			—

Remaining balances at September 30, 2009⁽¹⁾								$	(39,384	)	$	(67,382	)	$	(36,195	)

Loans purchased on October 2, 2009⁽²⁾	$	83,393	$	60,460	$	(22,933	)	$	(14,461	)	$	(5,742	)	$	(2,730	)


(1)		The remaining unrecognized bargain purchase gain is recognizable subject to the receipt of required third party consents.

(2)		None of the purchase price proceeds from the October 2, 2009 purchase are held in escrow. The bargain purchase gain is fully recognizable in the fourth quarter of 2009.

(3)		Third party consents were received and funds were released from escrow.

(4)		An additional $1.8 million of gain was recognized in conjunction with the establishment of a customer list intangible asset.

Other non-interest income for the third quarter of 2009 totaled $10.2 million, an increase of $3.7 million, compared to $6.5 million in the third quarter of 2008. Trading income increased $6.0 million as the Company recognized $6.2 million in trading income resulting primarily from the increase in market value of certain collateralized mortgage obligations. The Company purchased these securities at a significant discount during the first quarter of 2009. These securities have increased in value since their purchase due to market spreads tightening, increased mortgage prepayments due to favorable mortgage rate environment and the resultant refinancing activity taking place in the market, and lower than projected default rates. Partially offsetting the increase in trading income were fees from certain covered call option transactions decreasing by $2.7 million, as no income was recorded from this activity in the third quarter of 2009. Historically, compression in the net interest margin was effectively offset, as has consistently been the case, by the Company’s covered call strategy. In the third quarter of 2009, as the Company’s net interest margin expanded, management chose to not engage in covered call option activity due to lower than acceptable security yields which resulted in the elimination of revenue from 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 third quarter of 2009 totaled $92.6 million and increased approximately $29.4 million, or 46%, from the third quarter 2008 total of $63.2 million. On a year-to-date basis, non-interest expense for 2009 totaled $253.8 million and increased $62.5 million, or 33% over the same period in 2008.

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


	Three Months Ended
	September 30,				$			%
(Dollars in thousands)	2009		2008		Change			Change
Salaries and employee benefits	$	48,088	$	35,823		12,265			34
Equipment		4,069		4,050		19			1
Occupancy, net		5,884		5,666		218			4
Data processing		3,226		2,850		376			13
Advertising and marketing		1,488		1,343		145			11
Professional fees		4,089		2,195		1,894			86
Amortization of other intangible assets		677		781		(104	)		(13	)
Other:
Commissions – 3^rd party brokers		843		985		(142	)		(14	)
Postage		1,139		1,067		72			7
Stationery and supplies		769		750		19			3
FDIC insurance		4,334		1,344		2,990			NM
OREO expenses, net		10,243		487		9,756			NM
Miscellaneous		7,714		5,858		1,856			32

Total other		25,042		10,491		14,551			139


Total non-interest expense	$	92,563	$	63,199		29,364			46


	Nine Months Ended
	Nine Months Ended
	September 30,				$			%
(Dollars in thousands)	2009		2008		Change			Change
Salaries and employee benefits	$	138,923	$	109,471		29,452			27
Equipment		12,022		12,025		(3	)		—
Occupancy, net		17,682		16,971		711			4
Data processing		9,578		8,566		1,012			12
Advertising and marketing		4,003		3,709		294			8
Professional fees		9,843		6,490		3,353			52
Amortization of other intangible assets		2,040		2,348		(308	)		(13	)
Other:
Commissions – 3^rd party brokers		2,338		2,967		(629	)		21
Postage		3,466		3,108		358			12
Stationery and supplies		2,330		2,247		83			4
FDIC Insurance		16,468		3,919		12,549			NM
OREO expenses, net		13,671		1,382		12,289			NM
Miscellaneous		21,406		18,025		3,381			19

Total other		59,679		31,648		28,031			89


Total non-interest expense	$	253,770	$	191,228		62,542			33

NM = Not Meaningful

Salaries and employee benefits comprised 52% of total non-interest expense in the third quarter of 2009 and 57% in the third quarter of 2008. Salaries and employee benefits expense increased $12.3 million, or 34%, in the third quarter of 2009 compared to the third quarter of 2008 primarily as a result of higher commission and incentive compensation expenses related to mortgage banking activities and the incremental costs of the PMP staff. The higher commission and incentive compensation expense is primarily attributable to an increase in variable pay (commissions) of $4.7 million as a result of the higher mortgage loan origination volumes. On a year-to-date basis, salaries and employee benefits increased $29.5 million, or 27%, compared to the same period in 2008. Of this increase, $15.6 million was attributable to an increase in variable pay (commissions) as a result of the higher

mortgage loan origination volumes, $11.6 million primarily related to acquisitions and the remainder being generally related to increases in base salaries.

Professional fees include legal, audit and tax fees, external loan review costs and normal regulatory exam assessments. Professional fees for the third quarter of 2009 were $4.1 million, an increase of $1.9 million, or 86%, compared to the same period in 2008. On a year-to-date basis, professional fees were $9.8 million, an increase of $3.4 million, or 52%, compared to the same period in 2008. These increases are primarily a result of increased legal costs related to non-performing assets and acquisition related activities.

FDIC insurance totaled $4.3 million in the third quarter of 2009, an increase of $3.0 million compared to $1.3 million in the third quarter of 2008. On a year-to-date basis, FDIC insurance totaled $16.5 million in 2009, an increase of $12.5 million compared to $3.9 million in 2008. The increase in FDIC insurance rates at the beginning of 2009 and growth in the assessable deposit base contributed to the significant increases in FDIC insurance costs for the third quarter of 2009 while the first nine months of 2009 were also negatively impacted by the industry-wide special assessment on financial institutions in the second quarter of 2009

OREO expenses include all costs related with obtaining, maintaining and selling of other real estate owned properties. This expense totaled $10.2 million in the third quarter of 2009, an increase of $9.8 million compared to $487,000 in the third quarter of 2008. On a year-to-date basis, OREO expenses totaled $13.7 million in 2009, an increase of $12.3 million compared to $1.4 million in 2008.

Miscellaneous expense includes expenses such as ATM expenses, correspondent bank charges, directors’ fees, telephone, travel and entertainment, corporate insurance, dues and subscriptions and lending origination costs that are not deferred. Miscellaneous expenses in the third quarter of 2009 increased $1.9 million, or 32%, compared to the same period in the prior year. On year-to-date basis, miscellaneous expenses increased $5.1 million, or 32%, compared to the same period in the prior year.

ASSET QUALITY

Allowance for Credit Losses


	Three Months Ended						Nine Months Ended
	September 30,						September 30,
(Dollars in thousands)	2009			2008			2009			2008
Allowance for loan losses at beginning of period	$	85,113		$	57,633		$	69,767		$	50,389
Provision for credit losses		91,193			24,129			129,329			42,985
Reclassification to allowance for lending-related commitments		(1,543	)		—			(1,543	)		—

Charge-offs:
Commercial and commercial real estate loans		74,613			13,543			92,348			22,930
Home equity loans		1,727			28			3,034			53
Residential real estate loans		422			786			682			1,004
Premium finance receivables — commercial		2,478			1,002			5,622			2,798
Premium finance receivables — life insurance		—			—			—			—
Indirect consumer loans		588			292			1,421			821
Consumer and other loans		244			165			495			461

Total charge-offs		80,072			15,816			103,602			28,067


Recoveries:
Commercial and commercial real estate loans		139			216			454			285
Home equity loans		1			—			3			—
Residential real estate loans		—			—			—			—
Premium finance receivables — commercial		161			118			457			518
Premium finance receivables — life insurance		—			—			—			—
Indirect consumer loans		62			29			135			135
Consumer and other loans		42			18			96			82

Total recoveries		405			381			1,145			1,020

Net charge-offs		(79,667	)		(15,435	)		(102,457	)		(27,047	)


Allowance for loan losses at period end	$	95,096		$	66,327		$	95,096		$	66,327

Allowance for unfunded loan commitments at period end	$	3,129		$	493		$	3,129		$	493


Allowance for credit losses at period end	$	98,225		$	66,820		$	98,225		$	66,820

Credit discounts on purchased loans		36,195			—			36,195			—

Total credit reserves	$	134,420		$	66,820		$	134,420		$	66,820


Annualized net charge-offs by category as a percentage of its own respective category’s average:
Commercial and commercial real estate loans		5.83	%		1.15	%		2.48	%		0.67	%
Home equity loans		0.75			0.01			0.44			0.01
Residential real estate loans		0.33			0.92			0.19			0.39
Premium finance receivables — commercial		0.74			0.29			0.54			0.26
Premium finance receivables — life insurance		—			—			—			—
Indirect consumer loans		1.67			0.49			1.19			0.41
Consumer and other loans		0.71			0.36			0.38			0.31

Total loans, net of unearned income		3.65	%		0.84	%		1.66	%		0.50	%


Net charge-offs as a percentage of the provision for loan losses		87.36	%		63.97	%		79.22	%		62.92	%


Loans at period-end							$	8,275,257		$	7,322,545
Allowance for loan losses as a percentage of loans at period-end								1.15	%		0.91	%
Allowance for credit losses as a percentage of loans at period-end								1.19	%		0.91	%
Total credit reserves as a percentage of loans (net of discounts) at period-end								1.62	%		0.91	%

The allowance for credit losses is comprised of the allowance for loan losses and the allowance for lending-related commitments. The allowance for loan losses is a reserve against loan amounts that are actually funded and outstanding while the allowance for 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 lending-related commitments (separate liability account) represents the portion of the provision for credit losses that was associated with unfunded lending-related commitments. The provision for credit 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 reserves include the credit discounts on the purchased life insurance premium finance receivables.

The provision for credit losses totaled $91.2 million for the third quarter of 2009, $23.7 million in the second quarter of 2009 and $24.1 million for the third quarter of 2008. For the quarter ended September 30, 2009, net charge-offs totaled $79.7 million compared to $12.8 million in the second quarter of 2009 and $15.4 million recorded in the third quarter of 2008. On a ratio basis, annualized net charge-offs as a percentage of average loans were 3.65% in the third quarter of 2009, 0.63% in the second quarter of 2009, and 0.84% in the third quarter of 2008. On a year-to-date basis, the provision for credit losses totaled $129.3 million for 2009 and $43.0 million for the same period in 2008. Net charge-offs totaled $102.5 million in 2009 compared to $27.0 million recorded in 2008. On a ratio basis, annualized net charge-offs as a percentage of average loans were 1.66% in 2009 and 0.50% in 2008.

Management believes the allowance for loan losses is adequate 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 loan losses will be dependent upon management’s assessment of the adequacy 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 from the end of the prior quarter reflects the continued economic weaknesses in the Company’s markets and is the result of an individual review of a significant number of individual credits as well as the overall risk factors impacting certain types of credits, specifically credits with residential development collateral valuation exposure.

The tables below shows the aging of the Company’s loan portfolio at September 30, 2009 and June 30, 2009:


				90+ days			60-89			30-59
As of September 30, 2009	Non-			and still			days past			days past
(Dollars in thousands)	Accrual			accruing			due			due			Current			Total Loans
Loan Balances:
Commercial and commercial real estate loans	$	166,726		$	23,377		$	31,957		$	80,069		$	4,733,730		$	5,035,859
Home equity loans		6,808			100			716			5,375			915,549			928,548
Residential real estate loans		4,077			1,172			476			1,595			273,831			281,151
Premium finance receivables — commercial		16,093			11,714			6,394			7,880			709,951			752,032
Premium finance receivables — life insurance		—			—			—			—			1,045,653			1,045,653
Indirect consumer loans		736			549			862			2,398			110,983			115,528
Consumer and other loans		282			25			556			304			115,319			116,486

Total loans, net of unearned income	$	194,722		$	36,937		$	40,961		$	97,621		$	7,905,016		$	8,275,257


Aging as a % of Loan Balance:
Commercial and commercial real estate loans		3.3	%		0.5	%		0.6	%		1.6	%		94.0	%		100.0	%
Home equity loans		0.7			—			0.1			0.6			98.6			100.0
Residential real estate loans		1.5			0.4			0.2			0.6			97.4			100.0
Premium finance receivables — commercial		2.1			1.6			0.9			1.0			94.4			100.0
Premium finance receivables — life insurance		—			—			—			—			100.0			100.0
Indirect consumer loans		0.6			0.5			0.7			2.1			96.1			100.0
Consumer and other loans		0.2			—			0.5			0.3			99.0			100.0

Total loans, net of unearned income		2.4	%		0.4	%		0.5	%		1.2	%		95.5	%		100.0	%


				90+ days			60-89			30-59
As of June 30, 2009	Non-			and still			days past			days past
(Dollars in thousands)	Accrual			accruing			due			due			Current			Total Loans
Loan Balances:
Commercial and commercial real estate loans	$	184,722		$	7,519		$	59,673		$	34,870		$	4,797,133		$	5,083,917
Home equity loans		7,133			—			414			1,934			902,918			912,399
Residential real estate loans		4,792			1,447			161			429			272,516			279,345
Premium finance receivables — commercial		15,806			14,301			6,637			13,855			837,516			888,115
Premium finance receivables — life insurance		—			—			—			—			182,399			182,399
Indirect consumer loans		1,225			695			721			2,607			128,560			133,808
Consumer and other loans		238			341			213			821			113,880			115,493

Total loans, net of unearned income	$	213,916		$	24,303		$	67,819		$	54,516		$	7,234,922		$	7,595,476


Aging as a % of Loan Balance:
Commercial and commercial real estate loans		3.6	%		0.1	%		1.2	%		0.7	%		94.4	%		100.0	%
Home equity loans		0.8			—			—			0.2			99.0			100.0
Residential real estate loans		1.7			0.5			0.1			0.2			97.6			100.0
Premium finance receivables — commercial		1.8			1.6			0.7			1.6			94.3			100.0
Premium finance receivables — life insurance		—			—			—			—			100.0			100.0
Indirect consumer loans		0.9			0.5			0.5			1.9			96.1			100.0
Consumer and other loans		0.2			0.3			0.2			0.7			98.6			100.0

Total loans, net of unearned income		2.8	%		0.3	%		0.9	%		0.7	%		95.3	%		100.0	%

The amounts shown in the non-accrual and the 90+ days and still accruing columns represent the Company’s total reported non-performing loans balance. As of September 30, 2009, only $41.0 million of all loans, or 0.5%, were 60 to 89 days past due and only $97.6 million, or 1.2%, 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 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 very good delinquency ratios. Home equity loans at September 30, 2009 that are current with regards to the contractual terms of the loan agreement

represent 98.6% of the total home equity portfolio. Residential real estate loans at September 30, 2009 that are current with regards to the contractual terms of the loan agreements comprise 97.4% of total residential real estate loans outstanding.

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 collections. 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.

Non-performing Loans

The following table sets forth Wintrust’s non-performing loans at the dates indicated.


	September 30,			June 30,			December 31,			September 30,
(Dollars in thousands)	2009			2009			2008			2008
Loans past due greater than 90 days and still accruing:
Residential real estate and home equity	$	1,272		$	1,447		$	617		$	1,084
Commercial, consumer and other		23,402			7,860			14,750			6,100
Premium finance receivables — commercial		11,714			14,301			9,339			5,903
Premium finance receivables — life insurance		—			—			—			—
Indirect consumer loans		549			695			679			877

Total past due greater than 90 days and still accruing		36,937			24,303			25,385			13,964


Non-accrual loans:
Residential real estate and home equity		10,885			11,925			6,528			6,214
Commercial, consumer and other		167,008			184,960			91,814			81,997
Premium finance receivables — commercial		16,093			15,806			11,454			10,239
Premium finance receivables — life insurance		—			—			—			—
Indirect consumer loans		736			1,225			913			627

Total non-accrual		194,722			213,916			110,709			99,077


Total non-performing loans:
Residential real estate and home equity		12,157			13,372			7,145			7,298
Commercial, consumer and other		190,410			192,820			106,564			88,097
Premium finance receivables — commercial		27,807			30,107			20,793			16,142
Premium finance receivables — life insurance		—			—			—			—
Indirect consumer loans		1,285			1,920			1,592			1,504

Total non-performing loans	$	231,659			238,219		$	136,094		$	113,041


Total non-performing loans by category as a percent of its own respective category’s period-end balance:
Residential real estate and home equity		1.00	%		1.12	%		0.62	%		0.67	%
Commercial, consumer and other		3.70			3.71			2.16			1.82
Premium finance receivables — commercial		3.70			3.39			1.67			1.39
Premium finance receivables — life insurance		—			—			—			—
Indirect consumer loans		1.11			1.44			0.90			0.75

Total non-performing loans		2.80	%		3.14	%		1.79	%		1.54	%


Allowance for loan losses as a percentage of non-performing loans		41.05	%		35.73	%		51.26	%		58.67	%

Non-performing Residential Real Estate and Home Equity

The non-performing residential real estate and home equity loans totaled $12.2 million as of September 30, 2009. The balance increased $4.9 million from September 30, 2008 and decreased $1.2 million from June 30, 2009. The September 30, 2009 non-performing balance is comprised of $5.3 million of residential real estate (25 individual credits) and $6.9 million of home equity loans (25 individual credits). On average, this is approximately 3 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, Consumer and Other

The commercial, consumer and other non-performing loan category totaled $190.4 million as of September 30, 2009 compared to $192.8 million as of June 30, 2009 and $88.1 million as of September 30, 2008.

Management is pursuing the resolution of all credits in this category. 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 September 30, 2009 and 2008, and the amount of net charge-offs for the quarters then ended.


(Dollars in thousands)	September 30, 2009			September 30, 2008
Non-performing premium finance receivables-commercial	$	27,807		$	16,142
- as a percent of premium finance receivables-commercial outstanding		3.70	%		1.39	%

Net charge-offs of premium finance receivables-commercial	$	2,317		$	884
- annualized as a percent of average premium finance receivables-commercial		0.74	%		0.29	%

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.

Non-performing Indirect Consumer Loans

Total non-performing indirect consumer loans were $1.3 million at September 30, 2009, compared to $1.9 million at June 30, 2009 and $1.5 million at September 30, 2008. The ratio of these non-performing loans to total indirect consumer loans was 1.11% at September 30, 2009 compared to 1.44% at June 30, 2009 and 0.75% at September 30, 2008. As noted in the Allowance for Credit Losses table, net charge-offs as a percent of total indirect consumer loans were 1.67% for the quarter ended September 30, 2009 compared to 0.49% in the same period in 2008. Given the 42% decline in outstanding balances in the indirect consumer loan portfolio since September 30, 2008, the 1.67% charge-off ratio represents only $526,000 of total net charge-offs in the third quarter of 2009.

At the beginning of the third quarter of 2008, the Company ceased the origination of indirect automobile loans. This niche business served the Company well over the past 12 years in helping de novo banks quickly, and profitably, grow into their physical structures. Competitive pricing pressures significantly reduced the long-term potential profitably of this niche business. Given the current economic environment and the retirement of the founder of this niche business, exiting the origination of this business was deemed to be in the best interest of the Company. The Company will continue to service its existing portfolio during the duration of the credits.

Other Real Estate Owned

The table below presents a summary of other real estate owned as of September 30, 2009 and shows the changes in the balance from June 30, 2009 for each property type:


										Residential
	Residential									Real Estate									Commercial									Total
	Real Estate									Development									Real Estate									Balance
(Dollars in thousands)	$			#			R			$			#			R			$			#			R			$			#			R
Balance at June 30, 2009	$	7,873			6			6		$	28,908			51			11		$	4,657			8			5		$	41,438			65			22
Transfers at fair value		3,533			10			7			7,649			10			7			5,954			6			6			17,136			48			20
Fair value adjustments		(121	)		—			—			(7,197	)		—			—			(209	)		—			—			(7,527	)		—			—
Resolved		(3,272	)		(5	)		(4	)		(5,526	)		(6	)		(6	)		(1,610	)		(2	)		(2	)		(10,408	)		(13	)		(12	)

Balance at September 30, 2009	$	8,013			11			9		$	23,834			77			12		$	8,792			12			9		$	40,639			100			30


Balance at September 30, 2008																												$	12,523


$	–	balance

#	–	number of properties

R	–	number of relationships

WINTRUST SUBSIDIARIES AND LOCATIONS

Wintrust is a financial holding company whose common stock is traded on the Nasdaq Stock Marketâ (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, Lindenhurst, McHenry, Mokena, Mundelein, North Chicago, Northfield, Palatine, Prospect Heights, Ravinia, Riverside, Roselle, Sauganash, Skokie, Spring Grove, Vernon Hills, Wauconda, Western Springs, Willowbrook and Winnetka, and in Delafield, Elm Grove, Madison and 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 (formerly known as WestAmerica Mortgage Company) engages primarily in the origination and purchase of residential mortgages for sale into the secondary market through origination offices located throughout the United States. Loans are also originated nationwide through relationships with wholesale and correspondent offices. Wayne Hummer Investments, LLC is a broker-dealer providing a full range of private client and brokerage services to clients and correspondent banks located primarily in the Midwest. Wayne Hummer Asset Management Company 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. Wayne Hummer 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 in this document can be identified through the use of words such as “may,” “will,” “intend,” “plan,” “project,” “expect,” “anticipate,” “should,” “would,” “believe,” “estimate,” “contemplate,” “possible,” and “point.” Forward-looking statements and information are not historical facts, are premised on many factors, 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 in Item 1A on page 20 of the Company’s 2008 Form 10-K. 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 projected growth, anticipated improvements in earnings, earnings per share and other financial performance measures, and management’s long-term performance goals, as well as statements relating to the anticipated effects on financial results of condition from expected developments or events, the Company’s business and growth strategies, including anticipated internal growth, plans to form additionalde novobanks and to open new branch offices, and to pursue additional potential development or acquisitions of banks, wealth management entities or specialty finance businesses. Actual results could differ materially from those addressed in the forward-looking statements as a result of numerous factors, including the following:

	•		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).

	•		Changes in the interest rate environment, which may influence, among other things, the growth of loans and deposits, the quality of the Company’s loan portfolio, the pricing of loans and deposits and net interest income.

	•		The extent of defaults and losses on the Company’s loan portfolio, which may require further increases in its allowance for credit losses.

	•		Distressed global credit and capital markets.

	•		The ability of the Company to obtain liquidity and income from the sale of property and casualty premium finance receivables in the future and the unique collection and delinquency risks associated with such loans.

	•		Legislative or regulatory changes, particularly changes in regulation of financial services companies and/or the products and services offered by financial services companies.

	•		Failure to identify and complete acquisitions in the future or unexpected difficulties or unanticipated developments related to the integration of acquired entities with the Company.

	•		Significant litigation involving the Company.

	•		Changes in general economic conditions in the markets in which the Company operates.

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

	•		Unexpected difficulties or unanticipated developments related to the Company’s strategy ofde novobank formations and openings.De novobanks 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.

	•		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 risk that the terms of the U.S. Treasury Department’s Capital Purchase Program could change.

	•		The effect of continued margin pressure on the Company’s financial results.

	•		Additional deterioration in asset quality.

	•		Additional charges related to asset impairments.

	•		The other risk factors set forth in the Company’s filings with the Securities and Exchange Commission.

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. (CDT) Tuesday, October 27, 2009 regarding third quarter 2009 results. Individuals interested in listening should call (877) 795-3635 and enter Conference ID #9807043. 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 third quarter 2009 earnings press release will be available on the home page of the Company’s web site at (http://www.wintrust.com) and at the Investor News and Events, Press Releases link on its website.

# # #

WINTRUST FINANCIAL CORPORATION

Supplemental Financial Information

5 Quarter Trends

WINTRUST FINANCIAL CORPORATION – SUPPLEMENTAL FINANCIAL INFORMATION
Selected Financial Highlights – 5 Quarter Trends


	Three Months Ended
	September 30,			June 30,			March 31,			December 31,			September 30,
(Dollars in thousands, except per share data)	2009			2009			2009			2008			2008
Selected Financial Condition Data (at end of period):
Total assets	$	12,136,021		$	11,359,536		$	10,818,941		$	10,658,326		$	9,864,920
Total loans		8,275,257			7,595,476			7,841,447			7,621,069			7,322,545
Total deposits		9,847,163			9,191,332			8,625,977			8,376,750			7,829,527
Junior subordinated debentures		249,493			249,493			249,502			249,515			249,537
Total shareholders’ equity		1,106,082			1,065,076			1,063,227			1,066,572			809,331

Selected Statements of Income Data:
Net interest income	$	87,663		$	72,497		$	64,782		$	62,745		$	60,680
Net revenue⁽¹⁾		238,343			117,949			101,209			82,117			82,810
Income (loss) before taxes		54,587			10,041			9,774			2,727			(4,518	)
Net income (loss)		31,995			6,549			6,358			1,955			(2,448	)
Net income (loss) per common share — Basic		1.14			0.06			0.06			0.02			(0.13	)
Net income (loss) per common share — Diluted		1.07			0.06			0.06			0.02			(0.13	)

Selected Financial Ratios and Other Data:
Performance Ratios:
Net interest margin⁽²⁾		3.25	%		2.91	%		2.71	%		2.78	%		2.74	%
Non-interest income to average assets		5.07			1.65			1.38			0.77			0.89
Non-interest expense to average assets		3.11			3.06			2.91			2.57			2.54
Net overhead ratio⁽³⁾		(1.95	)		1.41			1.53			1.80			1.65
Efficiency ratio^{(2) (4)}		38.69			72.02			74.10			75.22			76.64
Return on average assets		1.08			0.24			0.24			0.08			(0.10	)
Return on average equity		13.79			0.79			0.71			0.22			(1.59	)
Average total assets	$	11,797,520		$	11,037,468		$	10,724,966		$	10,060,206		$	9,881,554
Average total shareholders’ equity		1,070,095			1,067,395			1,061,654			846,982			765,892
Average loans to average deposits ratio		90.5	%		92.8	%		93.4	%		93.5	%		94.1	%

*Common Share Data at end of period:*
Market price per common share	$	27.96		$	16.08		$	12.30		$	20.57		$	29.35
Book value per common share	$	34.10		$	32.59		$	32.64		$	33.03		$	32.07
Common shares outstanding		24,103,068			23,979,804			23,910,983			23,756,674			23,693,799
*Other Data at end of period:*
Leverage ratio⁽⁵⁾		7.7	%		7.9	%		8.0	%		8.6	%		8.1	%
Tier 1 capital to risk-weighted assets⁽⁵⁾		8.8	%		8.9	%		9.1	%		9.5	%		9.2	%
Total capital to risk-weighted assets⁽⁵⁾		12.1	%		12.3	%		12.6	%		13.1	%		10.7	%
Allowance for credit losses⁽⁶⁾	$	98,225		$	86,699		$	75,834		$	71,352		$	66,820
Credit discounts on purchased loans⁽⁷⁾		36,195			—			—			—			—
Total credit reserves		134,420			86,699			75,834			71,352			66,820
Non-performing loans		231,659			238,219			175,866			136,094			113,041
Allowance for credit losses to total loans⁽⁶⁾		1.19	%		1.14	%		0.97	%		0.94	%		0.91	%
Total credit reserves to total loans⁽⁸⁾		1.62	%		1.14	%		0.97	%		0.94	%		0.91	%
Non-performing loans to total loans		2.80	%		3.14	%		2.24	%		1.79	%		1.54	%
Number of:
Bank subsidiaries		15			15			15			15			15
Non-bank subsidiaries		8			8			7			7			8
Banking offices		78			79			79			79			79


(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 lending-related commitments.

(7)		Represents the remaining non-accretable portion of the discounts on the purchased life insurance premium finance loans that were purchased.

(8)		The sum of allowance for credit losses and credit discounts on purchased loans divided by total loans outstanding plus the credit discounts on purchased loans.

WINTRUST FINANCIAL CORPORATION — SUPPLEMENTAL FINANCIAL INFORMATION
Consolidated Statements of Condition — 5 Quarter Trends


	(Unaudited)			(Unaudited)			(Unaudited)						(Unaudited)
	September 30,			June 30,			March 31,			December 31,			September 30,
(In thousands)	2009			2009			2009			2008			2008

Assets
Cash and due from banks	$	128,898		$	122,382		$	122,207		$	219,794		$	158,201
Federal funds sold and securities purchased under resale agreements		22,863			41,450			98,454			226,110			35,181
Interest-bearing deposits with banks		1,168,362			655,759			266,512			123,009			4,686
Available-for-sale securities, at fair value		1,434,248			1,267,410			1,413,576			784,673			1,469,500
Trading account securities		29,204			22,973			13,815			4,399			2,243
Brokerage customer receivables		19,441			17,701			15,850			17,901			19,436
Loans held-for-sale		193,255			821,100			218,707			61,116			68,398
Loans, net of unearned income		8,275,257			7,595,476			7,841,447			7,621,069			7,322,545
Less: Allowance for loan losses		95,096			85,113			74,248			69,767			66,327

Net loans		8,180,161			7,510,363			7,767,199			7,551,302			7,256,218
Premises and equipment, net		352,890			350,447			349,245			349,875			349,388
Accrued interest receivable and other assets		315,806			260,182			263,145			240,664			209,970
Trade date securities receivable		—			—			—			788,565			—
Goodwill		276,525			276,525			276,310			276,310			276,310
Other intangible assets		14,368			13,244			13,921			14,608			15,389

Total assets	$	12,136,021		$	11,359,536		$	10,818,941		$	10,658,326		$	9,864,920


Liabilities and Shareholders’ Equity
Deposits:
Non-interest bearing	$	841,668		$	793,173		$	745,194		$	757,844		$	717,587
Interest bearing		9,005,495			8,398,159			7,880,783			7,618,906			7,111,940

Total deposits		9,847,163			9,191,332			8,625,977			8,376,750			7,829,527

Notes payable		1,000			1,000			1,000			1,000			42,025
Federal Home Loan Bank advances		433,983			435,980			435,981			435,981			438,983
Other borrowings		252,071			244,286			250,488			336,764			296,391
Subordinated notes		65,000			65,000			70,000			70,000			75,000
Junior subordinated debentures		249,493			249,493			249,502			249,515			249,537
Trade date securities payable		—			—			7,170			—			2,000
Accrued interest payable and other liabilities		181,229			107,369			115,596			121,744			122,126

Total liabilities		11,029,939			10,294,460			9,755,714			9,591,754			9,055,589


Shareholders’ equity:
Preferred stock		284,061			283,518			282,662			281,873			49,379
Common stock		26,965			26,835			26,766			26,611			26,548
Surplus		580,988			577,473			575,166			571,887			551,453
Treasury stock		(122,437	)		(122,302	)		(122,302	)		(122,290	)		(122,290	)
Retained earnings		342,873			317,713			315,855			318,793			318,066
Accumulated other comprehensive loss		(6,368	)		(18,161	)		(14,920	)		(10,302	)		(13,825	)

Total shareholders’ equity		1,106,082			1,065,076			1,063,227			1,066,572			809,331

Total liabilities and shareholders’ equity	$	12,136,021		$	11,359,536		$	10,818,941		$	10,658,326		$	9,864,920

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


	Three Months Ended
	September 30,			June 30,		March 31,			December 31,			September 30,
(In thousands, except per share data)	2009			2009		2009			2008			2008

Interest income
Interest and fees on loans	$	126,448		$	110,302	$	106,887		$	107,598		$	108,495
Interest bearing deposits with banks		778			767		660			125			27
Federal funds sold and securities purchased under resale agreements		106			66		61			30			197
Securities		14,106			15,819		14,327			17,868			17,599
Trading account securities		7			55		24			33			23
Brokerage customer receivables		132			120		120			164			228

Total interest income		141,577			127,129		122,079			125,818			126,569

Interest expense
Interest on deposits		42,806			43,502		45,953			50,740			53,405
Interest on Federal Home Loan Bank advances		4,536			4,503		4,453			4,570			4,583
Interest on notes payable and other borrowings		1,779			1,752		1,870			2,387			2,661
Interest on subordinated notes		333			428		580			770			786
Interest on junior subordinated debentures		4,460			4,447		4,441			4,606			4,454

Total interest expense		53,914			54,632		57,297			63,073			65,889

Net interest income		87,663			72,497		64,782			62,745			60,680
Provision for credit losses		91,193			23,663		14,473			14,456			24,129

Net interest income after provision for credit losses		(3,530	)		48,834		50,309			48,289			36,551

Non-interest income
Wealth management		7,501			6,883		5,926			6,705			7,044
Mortgage banking		13,204			22,596		16,232			3,138			4,488
Service charges on deposit accounts		3,447			3,183		2,970			2,684			2,674
Gain on sales of commercial premium finance receivables		3,629			196		322			361			456
Gains (losses) on available-for-sale securities, net		(412	)		1,540		(2,038	)		(3,618	)		920
Gain on bargain purchase		113,062			—		—			—			—
Other		10,249			11,054		13,015			10,102			6,548

Total non-interest income		150,680			45,452		36,427			19,372			22,130

Non-interest expense
Salaries and employee benefits		48,088			46,015		44,820			35,616			35,823
Equipment		4,069			4,015		3,938			4,190			4,050
Occupancy, net		5,884			5,608		6,190			5,947			5,666
Data processing		3,226			3,216		3,136			3,007			2,850
Advertising and marketing		1,488			1,420		1,095			1,642			1,343
Professional fees		4,089			2,871		2,883			2,334			2,195
Amortization of other intangible assets		677			676		687			781			781
Other		25,042			20,424		14,213			11,417			10,491

Total non-interest expense		92,563			84,245		76,962			64,934			63,199

Income (loss) before income taxes		54,587			10,041		9,774			2,727			(4,518	)
Income tax expense (benefit)		22,592			3,492		3,416			772			(2,070	)

Net income (loss)	$	31,995		$	6,549	$	6,358		$	1,955		$	(2,448	)

Preferred stock dividends and discount accretion		4,668			5,000		5,000			1,532			544

Net income (loss) applicable to common shares	$	27,327		$	1,549	$	1,358		$	423		$	(2,992	)

Net income (loss) per common share – Basic	$	1.14		$	0.06	$	0.06		$	0.02		$	(0.13	)

Net income (loss) per common share – Diluted	$	1.07		$	0.06	$	0.06		$	0.02		$	(0.13	)

Cash dividends declared per common share	$	0.09		$	—	$	0.18		$	—		$	0.18

Weighted average common shares outstanding		24,052			23,964		23,855			23,726			23,644
Dilutive potential common shares		2,493			300		221			447			—

Average common shares and dilutive common shares		26,545			24,264		24,076			24 173			23,644

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


	September 30,			June 30,			March 31,			December 31,			September 30,
(Dollars in thousands)	2009			2009			2009			2008			2008
Balance:
Commercial and commercial real estate	$	5,035,859		$	5,083,917		$	4,933,355		$	4,778,664		$	4,673,682
Home equity		928,548			912,399			920,412			896,438			837,127
Residential real estate		281,151			279,345			280,808			262,908			247,203
Premium finance receivables — commercial⁽²⁾		752,032			888,115			1,287,261			1,243,858			1,164,256
Premium finance receivables — life insurance		1,045,653			182,399			130,895			102,728			41,120
Indirect consumer loans⁽¹⁾		115,528			133,808			154,257			175,955			199,845
Other Loans		116,486			115,493			134,459			160,518			159,312

Total loans, net of unearned income	$	8,275,257		$	7,595,476		$	7,841,447		$	7,621,069		$	7,322,545

Mix:
Commercial and commercial real estate		61	%		67	%		63	%		63	%		64	%
Home equity		11			12			12			12			11
Residential real estate		4			3			4			3			4
Premium finance receivables — commercial⁽²⁾		9			12			16			16			16
Premium finance receivables — life insurance		13			2			2			2			1
Indirect consumer loans⁽¹⁾		1			2			2			2			3
Other loans		1			2			1	��		2			1

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


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

(2)		Excludes $520 million of property and casualty premium finance receivables reclassified to held-for-sale in the second quarter of 2009.

WINTRUST FINANCIAL CORPORATION — SUPPLEMENTAL FINANCIAL INFORMATION
Period End Deposit Balances — 5 Quarter Trends


	September 30,			June 30,			March 31,			December 31,			September 30,
(Dollars in thousands)	2009			2009			2009			2008			2008
Balance:
Non-interest bearing	$	841,668		$	793,173		$	745,194		$	757,844		$	717,587
NOW		1,245,689			1,072,255			1,064,663			1,040,105			1,012,393
Wealth management deposits⁽¹⁾		935,740			919,968			833,291			716,178			583,715
Money market		1,468,228			1,379,164			1,313,157			1,124,068			997,638
Savings		513,239			461,377			406,376			337,808			317,108
Time certificates of deposit		4,842,599			4,565,395			4,263,296			4,400,747			4,201,086

Total deposits	$	9,847,163		$	9,191,332		$	8,625,977		$	8,376,750		$	7,829,527

Mix:
Non-interest bearing		9	%		9	%		9	%		9	%		9	%
NOW		13			11			12			12			13
Wealth management deposits⁽¹⁾		9			10			10			9			7
Money market		15			15			15			13			13
Savings		5			5			5			4			4
Time certificates of deposit		49			50			49			53			54

Total deposits		100	%		100	%		100	%		100	%		100	%


(1)		Represents deposit balances at the Company’s subsidiary banks from brokerage customers of Wayne Hummer Investments, the trust and asset management customers of Wayne Hummer Trust Company and brokerage customers from unaffiliated companies which have been placed into deposit accounts of the Banks.

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


	Three Months Ended
	September 30,			June 30,			March 31,			December 31,			September 30,
(Dollars in thousands)	2009			2009			2009			2008			2008

Liquidity management assets	$	2,078,330		$	1,851,179		$	1,839,161		$	1,607,707		$	1,544,465
Other earning assets		24,874			22,694			22,128			21,630			21,687
Loans, net of unearned income		8,665,281			8,212,572			7,924,849			7,455,418			7,343,845

Total earning assets	$	10,768,485		$	10,086,445		$	9,786,138		$	9,084,755		$	8,909,997

Allowance for loan losses		(85,300	)		(72,990	)		(72,044	)		(67,342	)		(57,751	)
Cash and due from banks		109,645			118,402			107,550			127,700			133,527
Other assets		1,004,690			905,611			903,322			915,093			895,781

Total assets	$	11,797,520		$	11,037,468		$	10,724,966		$	10,060,206		$	9,881,554


Interest-bearing deposits	$	8,799,578		$	8,097,096		$	7,747,879		$	7,271,505		$	7,127,065
Federal Home Loan Bank advances		434,134			435,983			435,982			439,432			438,983
Notes payable and other borrowings		245,352			249,123			301,894			379,914			398,911
Subordinated notes		65,000			66,648			70,000			73,364			75,000
Junior subordinated debentures		249,493			249,494			249,506			249,520			249,552

Total interest-bearing liabilities	$	9,793,557		$	9,098,344		$	8,805,261		$	8,413,735		$	8,289,511

Non-interest bearing deposits		775,202			754,479			733,911			705,616			678,651
Other liabilities		158,666			117,250			124,140			93,873			147,500
Equity		1,070,095			1,067,395			1,061,654			846,982			765,892

Total liabilities and shareholders’ equity	$	11,797,520		$	11,037,468		$	10,724,966		$	10,060,206		$	9,881,554

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


	Three Months Ended
	September 30,			June 30,			March 31,			December 31,			September 30,
	2009			2009			2009			2008			2008

Yield earned on:
Liquidity management assets		2.94	%		3.71	%		3.42	%		4.57	%		4.70	%
Other earning assets		2.36			3.27			2.85			3.94			4.81
Loans, net of unearned income		5.79			5.39			5.48			5.75			5.89

Total earning assets		5.24	%		5.08	%		5.08	%		5.54	%		5.68	%

Rate paid on:
Interest-bearing deposits		1.93	%		2.15	%		2.41	%		2.78	%		2.98	%
Federal Home Loan Bank advances		4.14			4.14			4.14			4.14			4.15
Notes payable and other borrowings		2.88			2.82			2.51			2.50			2.65
Subordinated notes		2.01			2.54			3.31			4.11			4.10
Junior subordinated debentures		6.99			7.05			7.12			7.22			6.98

Total interest-bearing liabilities		2.18	%		2.41	%		2.64	%		2.98	%		3.16	%


Rate Spread		3.06	%		2.67	%		2.44	%		2.56	%		2.52	%
Net Free Funds Contribution		0.19			0.24			0.27			0.22			0.22

Net Interest Margin		3.25	%		2.91	%		2.71	%		2.78	%		2.74	%

WINTRUST FINANCIAL CORPORATION — SUPPLEMENTAL FINANCIAL INFORMATION
Net Interest Margin (Including Call Option Income) — 5 Quarter Trends


	Three Months Ended
	September 30,			June 30,			March 31,			December 31,			September 30,
	2009			2009			2009			2008			2008

Net Interest Income	$	88,178		$	73,067		$	65,402		$	63,340		$	61,257
Call Option Income		—			—			1,998			7,438			2,723

Net Interest Income Including Call Option Income	$	88,178		$	73,067		$	67,400		$	70,778		$	63,980


Yield on Earning Assets		5.24	%		5.08	%		5.08	%		5.54	%		5.68	%
Rate on Interest-bearing Liabilities		2.18			2.41			2.64			2.98			3.16

Rate Spread		3.06	%		2.67	%		2.44	%		2.56	%		2.52	%
Net Free Funds Contribution		0.19			0.24			0.27			0.22			0.22

Net Interest Margin		3.25	%		2.91	%		2.71	%		2.78	%		2.74	%

Call Option Income		—			—			0.08			0.33			0.12

Net Interest Margin including Call Option Income		3.25	%		2.91	%		2.79	%		3.11	%		2.86	%

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


	Nine Months
	Ended			Years Ended
	September 30,			December 31,
	2009			2008			2007			2006			2005

Net Interest Income	$	226,647		$	247,054		$	264,777		$	250,507		$	218,086
Call Option Income		1,998			29,024			2,628			3,157			11,434

Net Interest Income Including Call Option Income	$	228,645		$	276,078		$	267,405		$	253,664		$	229,520


Yield on Earning Assets		5.15	%		5.88	%		7.21	%		6.91	%		5.92	%
Rate on Interest-bearing Liabilities		2.40			3.31			4.39			4.11			3.00

Rate Spread		2.75	%		2.57	%		2.82	%		2.80	%		2.92	%
Net Free Funds Contribution		0.23			0.24			0.29			0.30			0.24

Net Interest Margin		2.98	%		2.81	%		3.11	%		3.10	%		3.16	%

Call Option Income		0.03			0.33			0.03			0.04			0.17

Net Interest Margin including Call Option Income		3.01	%		3.14	%		3.14	%		3.14	%		3.33	%

WINTRUST FINANCIAL CORPORATION — SUPPLEMENTAL FINANCIAL INFORMATION

Non-Interest Income — 5 Quarter Trends


	Three Months Ended
	September 30,			June 30,		March 31,			December 31,			September 30,
(Dollars in thousands)	2009			2009		2009			2008			2008
Brokerage	$	4,593		$	4,280	$	3,819		$	4,310		$	4,354
Trust and asset management		2,908			2,603		2,107			2,395			2,690

Total wealth management		7,501			6,883		5,926			6,705			7,044


Mortgage banking		13,204			22,596		16,232			3,138			4,488
Service charges on deposit accounts		3,447			3,183		2,970			2,684			2,674
Gain on sale of property and casualty premium finance receivables		3,629			196		322			361			456
(Losses) gains on available-for-sale securities, net		(412	)		1,540		(2,038	)		(3,618	)		920
Gain on bargain purchase		113,062			—		—			—			—
Other:
Fees from covered call options		—			—		1,998			7,438			2,723
Bank Owned Life Insurance		552			565		286			(319	)		478
Trading income		6,236			8,274		8,744			(105	)		286
Administrative services		527			454		482			670			803
Miscellaneous		2,934			1,761		1,505			2,418			2,258

Total other income		10,249			11,054		13,015			10,102			6,548


Total non-interest income	$	150,680			45,452		36,427			19,372			22,130

WINTRUST FINANCIAL CORPORATION — SUPPLEMENTAL FINANCIAL INFORMATION

Non-Interest Expense — 5 Quarter Trends


	Three Months Ended
	September 30,		June 30,		March 31,		December 31,		September 30,
(Dollars in thousands)	2009		2009		2009		2008		2008
Salaries and employee benefits	$	48,088	$	46,015	$	44,820	$	35,616	$	35,823
Equipment		4,069		4,015		3,938		4,190		4,050
Occupancy, net		5,884		5,608		6,190		5,947		5,666
Data processing		3,226		3,216		3,136		3,007		2,850
Advertising and marketing		1,488		1,420		1,095		1,642		1,343
Professional fees		4,089		2,871		2,883		2,334		2,195
Amortization of other intangibles		677		676		687		781		781
Other:
Commissions — 3^rd party brokers		843		791		704		802		985
Postage		1,139		1,146		1,180		1,012		1,067
Stationery and supplies		769		793		768		757		750
FDIC Insurance		4,334		9,121		3,013		1,681		1,344
OREO expenses, net		10,243		1,072		2,356		641		487
Miscellaneous		7,714		7,501		6,192		6,524		5,858

Total other expense		25,042		20,424		14,213		11,417		10,491


Total non-interest expense	$	92,563		84,245		76,962		64,934		63,199

WINTRUST FINANCIAL CORPORATION — SUPPLEMENTAL FINANCIAL INFORMATION

Allowance for Credit Losses — 5 Quarter Trends


	Three Months Ended
	September 30,			June 30,			March 31,			December 31,			September 30,
(Dollars in thousands)	2009			2009			2009			2008			2008
Balance at beginning of period	$	85,113		$	74,248		$	69,767		$	66,327		$	57,633
Provision for credit losses		91,193			23,663			14,473			14,456			24,129
Reclassification to allowance for lending-related commitments		(1,543	)		—			—			(1,093	)		—

Charge-offs:
Commercial and commercial real estate loans		74,613			9,846			7,890			7,539			13,543
Home equity loans		1,727			795			511			231			28
Residential real estate loans		422			108			152			627			786
Premium finance receivables — commercial		2,478			1,792			1,351			1,275			1,002
Premium finance receivables — life insurance		—			—			—			—			—
Indirect consumer loans		588			473			361			501			292
Consumer and other loans		244			130			121			157			165

Total charge-offs		80,072			13,144			10,386			10,330			15,816


Recoveries:
Commercial and commercial real estate loans		139			107			208			211			216
Home equity loans		1			1			1			1			—
Residential real estate loans		—			—			—			—			—
Premium finance receivables — commercial		161			155			141			144			118
Premium finance receivables — life insurance		—			—			—			—			—
Indirect consumer loans		62			44			29			38			29
Consumer and other loans		42			39			15			13			18

Total recoveries		405			346			394			407			381

Net charge-offs		(79,667	)		(12,798	)		(9,992	)		(9,923	)		(15,435	)


Allowance for loan losses at end of period	$	95,096		$	85,113		$	74,248		$	69,767		$	66,327


Allowance for lending-related commitments at end of period	$	3,129		$	1,586		$	1,586		$	1,586		$	493

Allowance for credit losses at end of period	$	98,225		$	86,699		$	75,834		$	71,353		$	66,820


Credit discounts on purchased loans		36,195			—			—			—			—
Total credit reserves	$	134,420		$	86,699		$	75,834		$	71,535		$	66,820


Annualized net charge-offs (recoveries) by category as a percentage of its own respective category’s average:
Commercial and commercial real estate loans		5.83	%		0.78	%		0.65	%		0.62	%		1.15	%
Home equity loans		0.75			0.35			0.23			0.11			0.01
Residential real estate loans		0.33			0.09			0.14			0.79			0.92
Premium finance receivables — commercial		0.74			0.48			0.37			0.37			0.29
Premium finance receivables — life insurance		—			—			—			—			—
Indirect consumer loans		1.67			1.20			0.81			0.98			0.49
Consumer and other loans		0.71			0.25			0.27			0.35			0.36

Total loans, net of unearned income		3.65	%		0.63	%		0.51	%		0.53	%		0.84	%


Net charge-offs as a percentage of the provision for loan losses		87.36	%		54.08	%		69.04	%		68.64	%		63.97	%


Loans at period-end	$	8,275,257		$	7,595,476		$	7,841,447		$	7,621,068		$	7,322,545
Allowance for loan losses as a percentage of loans at period-end		1.15	%		1.12	%		0.95	%		0.92	%		0.91	%
Allowance for credit losses as a percentage of loans at period-end		1.19	%		1.14	%		0.97	%		0.94	%		0.91	%
Total credit reserves as a percentage of loans (net of discounts) at period-end		1.62	%		1.14	%		0.97	%		0.94	%		0.91	%

WINTRUST FINANCIAL CORPORATION — SUPPLEMENTAL FINANCIAL INFORMATION

Non-Performing Loans — 5 Quarter Trends


	September 30,			June 30,			March 31,			December 31,			September 30,
(Dollars in thousands)	2009			2009			2009			2008			2008

Loans past due greater than 90 days and still accruing:
Residential real estate and home equity	$	1,272		$	1,447		$	726		$	617		$	1,084
Commercial, consumer and other		23,402			7,860			4,958			14,750			6,100
Premium finance receivables — commercial		11,714			14,301			9,722			9,339			5,903
Premium finance receivables — life insurance		—			—			—			—			—
Indirect consumer loans		549			695			1,076			679			877

Total past due greater than 90 days and still accruing		36,937			24,303			16,482			25,385			13,964


Non-accrual loans:
Residential real estate and home equity		10,885			11,925			9,209			6,528			6,214
Commercial, consumer and other		167,008			184,960			136,397			91,814			81,997
Premium finance receivables — commercial		16,093			15,806			12,694			11,454			10,239
Premium finance receivables — life insurance		—			—			—			—			—
Indirect consumer loans		736			1,225			1,084			913			627

Total non-accrual		194,722			213,916			159,384			110,709			99,077


Total non-performing loans:
Residential real estate and home equity		12,157			13,372			9,935			7,145			7,298
Commercial, consumer and other		190,410			192,820			141,355			106,564			88,097
Premium finance receivables — commercial		27,807			30,107			22,416			20,793			16,142
Premium finance receivables — life insurance		—			—			—			—			—
Indirect consumer loans		1,285			1,920			2,160			1,592			1,504

Total non-performing loans	$	231,659		$	238,219		$	175,866		$	136,094		$	113,041


Total non-performing loans by category as a percent of its own respective category’s period-end balance:
Residential real estate and home equity		1.00	%		1.12	%		0.83	%		0.62	%		0.67	%
Commercial, consumer and other		3.70			3.71			2.79			2.16			1.82
Premium finance receivables — commercial		3.70			3.39			1.74			1.67			1.39
Premium finance receivables — life insurance		—			—			—			—			—
Indirect consumer loans		1.11			1.44			1.40			0.90			0.75

Total non-performing loans		2.80	%		3.14	%		2.24	%		1.79	%		1.54	%


Allowance for loan losses as a percentage of non-performing loans		41.05	%		35.73	%		42.22	%		51.26	%		58.67	%

Wintrust Financial (WTFC) 8-KWintrust Financial Corporation Reports Third Quarter 2009 Results