Wintrust Financial 8K Reports Third Quarter 2010 Net Income of $20.1 Million or $0.47 Per Diluted Common Share | WTFC 27 Oct 10

Exhibit 99.1

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

News Release


FOR IMMEDIATE RELEASE		October 27, 2010

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 2010
NET INCOME OF $20.1 MILLION OR $0.47 PER DILUTED COMMON SHARE

LAKE FOREST, ILLINOIS—Wintrust Financial Corporation (“Wintrust” or “the Company”) (Nasdaq WTFC) announced net income of $20.1 million or $0.47 per diluted common share for the quarter ended September 30, 2010, an increase of $0.22, or 88%, compared to $13.0 million, or $0.25 per diluted common share, recorded in the second quarter of 2010.

The Company’s total assets of $14.1 billion at September 30, 2010 increased $392 million from June 30, 2010 and $2.0 billion from September 30, 2009. Total deposits as of September 30, 2010 were $11.0 billion, an increase of $337 million from June 30, 2010 (including $119 million in additional deposits for the third quarter of 2010 related to an FDIC-assisted transaction) and $1.1 billion from September 30, 2009. Total loans, including loans held for sale and excluding covered loans, were $9.8 billion as of September 30, 2010, an increase of $219 million over the $9.6 billion balance as of June 30, 2010 and an increase of $1.3 billion over September 30, 2009.

Edward J. Wehmer, President and Chief Executive Officer, commented “We are pleased to report net income of $20.1 million for the third quarter of 2010. Core pre-tax earnings have increased 28% in the past twelve months, to $47.6 million in the third quarter of 2010 from $37.1 million in the third quarter of 2009.”

“Current market conditions are providing us with opportunities to grow our core deposit franchises. During the third quarter, the Company grew total deposits by $337 million, which included $119 million from the FDIC-assisted purchase of Ravenswood Bank in August. The accumulation of excess liquidity management assets on the Company’s balance sheet from solid deposit growth has negatively impacted our net interest margin on a short-term basis until appropriate risk-adjusted returns for liquidity can be found.”

Mr. Wehmer noted, “The Company’s net interest margin for the quarter declined to 3.22% from 3.43% in the second quarter of 2010. This 21 basis point decline in margin was caused by:

	•		14 basis point reduction due to the combination of higher levels of liquidity management assets and lower yields on liquidity management assets

	•		10 basis point reduction due to $3.2 million less accretion on the purchased life insurance premium finance portfolio due to a slower rate of prepayments

	•		Nine basis point reduction attributable to the sale of certain collateralized mortgage obligations

	•		11 basis point improvement from continued lower re-pricing of retail certificates of deposit

	•		One basis point improvement due to higher contribution from net free funds

Meaningful expansion of the Company’s net interest margin remains a function of continued loan growth, continued re-pricing of maturing certificates of deposit and stabilizing levels of liquidity management assets and yields on those assets.”

Commenting on credit, excluding the impact of the covered loans acquired in the FDIC-assisted transactions, Mr. Wehmer said, “The Company continues to aggressively identify potential non-performing credits and take actions on existing non-performing credits. Both total non-performing loans and total non-performing loans as a percent of total loans decreased during the third quarter. Additionally, non-performing assets, which includes other real-estate owned (“OREO”), declined $11 million since June 30, 2010. During the third quarter, the Company recorded a provision for credit losses of $25.5 million and net charge-offs of $21.4 million, the lowest levels since the second quarter of 2009. Our allowance for loan losses increased to $110.4 million or 1.17% of total loans.”

Mr. Wehmer also noted, “We are very pleased with our complementary core banking businesses as well. Mortgage banking recorded total revenue of $20.1 million in the third quarter of 2010, up 163% from the previous quarter. Current mortgage rates available indicate an elevated level of originations and revenue will be recorded in the fourth quarter. Mortgage put-backs on previously originated products have abated and are currently appropriately reserved. The Company has actively worked to reach global settlements with investors.”

Summarizing new initiatives in the quarter, Mr. Wehmer concluded by noting, “Late in the third quarter we began a re-branding campaign of our wealth management line of business. All wealth management services are now marketed under the “Wintrust Wealth Management” name. Our broker dealer will continue to serve its customers using the well-recognized Wayne Hummer Investments brand. Trust services will now be marketed under The Chicago Trust Company brand name while asset management services will now be marketed using the Wintrust Capital Management brand name. Our Wintrust Commercial Banking office opened and continues to develop its presence in the Chicago middle market place.”

In closing, Mr. Wehmer added, “During the third quarter of 2010 we completed our third FDIC-assisted transaction by acquiring certain assets and liabilities of the banking operations of Ravenswood Bank. We will continue to be actively involved in the FDIC-assisted transaction process in desirable markets using a disciplined financial approach. We will also continue to evaluate non-FDIC-assisted transactions as well as opportunities in our other lines of business following a similarly disciplined approach.”

See “Acquisitions” and “Securitizations” later in this document for additional explanations of loan balance changes between comparable periods. The Company’s loan portfolio is diversified among a wide variety of loan types. Please see the tables included in the remainder of this document for additional disclosures regarding the components of the commercial and commercial real estate portfolio, the allowance for credit losses, loan portfolio aging statistics and purchased loans subject to loss sharing agreements with the FDIC, which we refer to as “covered loans”.

Wintrust’s key operating measures and growth rates for the third quarter of 2010 as compared to the sequential and linked quarters are shown in the table below:


										% or⁽⁴⁾			% or
										basis point (bp)			basis point (bp)
										change			change
	Three Months Ended									from			from
	September 30,			June 30,			September 30,			2nd Quarter			3rd Quarter
	2010			2010			2009			2010			2009
Net income	$	20,098		$	13,009		$	31,995			54	%		(37	)%
Net income per common share — diluted	$	0.47		$	0.25		$	1.07			88	%		(56	)%

Core pre-tax earnings⁽²⁾	$	47,572		$	47,649		$	37,137			—	%		28	%
Net revenue⁽¹⁾	$	157,636		$	154,750		$	238,343			2	%		(34	)%
Net interest income	$	102,980		$	104,314		$	87,663			(1	)%		17	%

Net interest margin⁽²⁾		3.22	%		3.43	%		3.25	%		(21	)bp		(3	)bp
Net overhead ratio⁽³⁾		1.28	%		1.26	%		(1.95	)%		2	bp		323	bp
Return on average assets		0.57	%		0.39	%		1.08	%		18	bp		(51	)bp
Return on average common equity		5.44	%		2.98	%		13.79	%		246	bp		(835	)bp

At end of period
Total assets	$	14,100,368		$	13,708,560		$	12,136,021			12	%		16	%
Total loans, excluding covered loans	$	9,461,155		$	9,324,163		$	8,275,257			6	%		14	%
Total loans, including loans held-for-sale, excluding covered loans	$	9,781,595		$	9,562,144		$	8,468,512			9	%		16	%
Total deposits	$	10,962,239		$	10,624,742		$	9,847,163			13	%		11	%
Total shareholders’ equity	$	1,398,912		$	1,384,736		$	1,106,082			4	%		26	%


⁽¹⁾		Net revenue is net interest income plus non-interest income.

⁽²⁾		See “Supplemental Financial Measures/Ratios” for additional information on this performance measure/ratio.

⁽³⁾		The net overhead ratio is calculated by netting total non-interest expense and total non-interest income, annualizing this amount, and dividing by that period’s average total assets. A lower ratio indicates a higher degree of efficiency.

⁽⁴⁾		Period-end balance sheet percentage changes are annualized.

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

Items Impacting Comparative Financial Results: Acquisitions, Securitization andStock Offerings/Regulatory Capital

Acquisitions

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

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

On April 23, 2010, the Company announced that Northbrook and Wheaton, in two FDIC-assisted transactions, had acquired certain assets and liabilities and the banking operations of Lincoln Park Savings Bank (“Lincoln Park”) and Wheatland Bank (“Wheatland”), respectively. Lincoln Park operated four locations in Chicago, Illinois. Wheatland had one location in Naperville, Illinois.

In summary in the FDIC-assisted transactions:

	•		Northbrook assumed approximately $120 million of the outstanding deposits and approximately $188 million of assets of Ravenswood, prior to purchase accounting adjustments.

	•		Northbrook assumed approximately $160 million of the outstanding deposits and approximately $170 million of assets of Lincoln Park, prior to purchase accounting adjustments.

	•		Wheaton assumed approximately $400 million of the outstanding deposits and approximately $370 million of assets of Wheatland, prior to purchase accounting adjustments.

These purchases were accounted for as business combinations as required by Accounting Standards Codification (ASC) 805, Business Combinations (“ASC 805”), which became effective for the Company beginning on January 1, 2009. Under ASC 805 a gain is recorded equal to the amount by which the fair value of net assets purchased exceeded the purchase price. The Company recognized a gain of $6.6 million in the third quarter of 2010 on the Ravenswood acquisition. The Company recognized gains of $22.3 million and $4.2 million in the second

quarter of 2010 on the Wheatland and Lincoln Park acquisitions, respectively. These gains are shown as a gain on bargain purchases, which is a component of non-interest income, on the Company’s statements of income.

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

On July 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 assumed certain related liabilities. An aggregate unpaid principal balance of $949.3 million was purchased for $685.3 million in cash.

In connection with the purchase of the life insurance premium finance business, the Company recognized a $10.9 million gain in the first quarter of 2010, a $43.0 million gain in the fourth quarter of 2009 and a $113.1 million

gain in the third quarter of 2009. As of March 31, 2010, the full amount of bargain purchase gain was recognized into income. The following table presents a summary of the discount components for the life insurance premium finance portfolio purchase as of September 30, 2010 and shows the changes in the balances from December 31, 2009:

Purchased Loan Portfolio
Summary of Acquisition


				Credit
				discounts -
				non-
	Accretable			accretable
(Dollars in thousands)	discounts			discounts -
Balances at December 31, 2009	$	65,026		$	37,323
- Accretion (effective yield method)		(5,418	)		—
- Accretion recognized as accounts prepay		(1,427	)		(2,289	)
- Discount used for loans written off		(144	)		(1,044	)

Balances at March 31, 2010	$	58,037		$	33,990

- Accretion (effective yield method)		(4,810	)		—
- Accretion recognized as accounts prepay		(3,434	)		(3,418	)
- Reclassification from nonaccretable to accretable		1,986			(1,986	)
- Discount used for loans written off		—			(369	)

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

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

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

On April 20, 2009, Wintrust Capital Management (formerly known as Wayne Hummer Asset Management Company) completed its purchase and assumption of certain assets and 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.

Securitization

Sale of Loans

On September 11, 2009, Wintrust’s indirect, wholly-owned subsidiary, FIFC Premium Funding I, LLC (the “Issuer”), sold $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. At the time of closing, the securitization was 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 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.

Change in Accounting Treatment

At September 30, 2009, prior to the existence of the securitization facility, all premium finance loans held by the Company were reflected as loans on its balance sheet. At December 31, 2009, with the securitization facility in place, approximately $594 million of commercial premium finance loans were held in the securitization facility and were not reflected on the Company’s balance sheet. In accordance with newly applicable accounting guidance, and as anticipated by the Company, effective January 1, 2010 the securitization facility was recorded on the balance sheet of the Company as a secured borrowing. As a result of this new guidance, the Company’s balance sheet since January 1, 2010 reflects all loans outstanding in the securitization facility, the $600 million of secured borrowing notes issued to the securitization investors and cash in the securitization facility.

Stock Offerings/Regulatory Capital

On March 9, 2010, the Company announced the closing of its public offering of 5.8 million shares of common stock at $33.25 per share. The Company received net proceeds of approximately $182.9 million, after deducting underwriting discounts and commissions and estimated offering expenses. On March 16, 2010, the Company’s underwriters, who were granted a 30-day option to purchase up to an additional 870,000 shares at a public offering price of $33.25 per share to cover over-allotments, fully exercised this option for additional net proceeds of approximately $27.5 million, after deducting underwriting discounts and commissions and estimated offering expenses. In total, the Company sold 6.67 million shares for net proceeds of approximately $210.3 million.

As of September 30, 2010, the Company’s estimated capital ratios were 14.1% for total risk-based capital, 12.7% for tier 1 risk-based capital and 10.0% for leverage, well above the well capitalized guidelines. Additionally, the Company’s tangible common equity ratio was 5.9% at September 30, 2010.

Financial Performance Overview — Third Quarter of 2010

For the third quarter of 2010, net interest income totaled $103.0 million, an increase of $15.3 million as compared to the third quarter of 2009 and a decrease of $1.3 million as compared to the second quarter of 2010. Average earning assets for the third quarter of 2010 increased by $2.0 billion compared to the third quarter of 2009.

Earning asset growth over the past 12 months was primarily a result of the $938 million increase in average loans and $725 million increase in liquidity management assets. The acquisition of a life insurance premium finance portfolio and subsequent growth in this product accounted for $714 million of the total loan growth over the past 12 months, while the three FDIC-assisted acquisitions accounted for $326 million of average covered loan growth. The average earning asset growth of $2.0 billion over the past 12 months was funded by a $647 million increase in the average balances of savings, NOW, MMA and Wealth Management deposits, an increase in the average balance of net free funds of $416 million, an increase in the average balance of retail certificates of deposit of $354 million, an increase of $600 million due to the secured borrowing notes to the securitization investors and an increase in the average balance of brokered certificates of deposit of $23 million, offset by a decrease in the average balance of other wholesale borrowings of $42 million. The net interest margin for the third quarter of 2010 was 3.22%, compared to 3.25% in the third quarter of 2009 and 3.43% in the second quarter of 2010. The decline in net interest margin in the third quarter of 2010 compared to the second quarter of 2010 was primarily caused by $3.2 million less accretion on the purchased life insurance portfolio as less prepayments occurred (reduced net interest margin by 10 basis points), higher balances and lower yields on liquidity management assets (reduced net interest margin by 14 basis points), the negative impact of selling certain collateralized mortgage obligations (reduced net interest margin by nine basis points), offset by lower costs for interest-bearing deposits (increased net interest margin by 11 basis points) and higher contribution from net free funds (increased net interest margin by 1 basis point). The decrease in net interest margin in the third quarter of 2010 compared to the third quarter of 2009 resulted from the yield on earning assets decreasing 65 basis points and the yield on interest-bearing liabilities decreasing 63 basis points.

Non-interest income totaled $54.7 million in the third quarter of 2010, decreasing $96.0 million, or 64%, compared to the third quarter of 2009 and increasing $4.2 million, or 8%, compared to the second quarter of 2010. The decrease compared to the prior year was primarily attributable to the bargain purchase gain related to the life insurance premium finance loan acquisition in the third quarter of 2009 and lower trading gains, partially offset by an increase in mortgage banking revenue and gains on available-for-sale securities. Mortgage banking revenue increased $7.8 million when compared to the third quarter of 2009 as loans originated and sold to the secondary market were $1.1 billion in the third quarter of 2010 compared to $960 million in the third quarter of 2009 and $732 million in the second quarter of 2010. Higher originations and sales to the secondary market in the third quarter of 2010 as compared to the third quarter of 2009 directly increased gains recognized on these sales. However, changes in the fair market value of mortgage servicing rights, valuation fluctuations of mortgage banking derivatives and fair

value accounting for certain residential mortgage loans held for sale lowered mortgage banking revenue in the current quarter. Additionally, expenses recognized for the estimated liability associated with mortgage loans previously sold with recourse to the secondary market decreased in the third quarter of 2010 compared to the second quarter of 2010 as fewer investors, representing fewer loans, requested the Company to indemnify them against losses on loans or to repurchase loans which the investors believe do not comply with applicable representations. The Company recognized $1.4 million of expense in the third quarter of 2010, a decrease of $3.3 million compared to the second quarter of 2010, and an increase of $1.4 million compared to the third quarter of 2009. Also, net gains on available-for-sale securities increased $9.6 million in the third quarter of 2010 compared to the prior year quarter, primarily related to the sale of certain collateralized mortgage obligations. Trading income decreased by $5.5 million in the third quarter of 2010 when compared to the third quarter of 2009 primarily due to realizing larger market value increases in the prior year on certain collateralized mortgage obligations held in trading.

Early in July we liquidated approximately $160 million of collateralized mortgage obligations that were acquired in the first quarter of 2009, recognizing a $7.7 million gain on available-for-sale securities in the third quarter. The Company recorded $31.7 million of trading gains on the trading component of these securities over the previous six quarters, which had an initial investment of approximately $0.5 million. The available-for-sale component of these securities yielded approximately 9% in the previous quarter. The absence of these securities from our portfolio in the third quarter negatively impacted our net interest margin by nine basis points and restrained the growth of our core pre-tax earnings compared to the second quarter.

Non-interest expense totaled $99.7 million in the third quarter of 2010, increasing $7.2 million, or 8%, compared to the third quarter of 2009 and increasing $7.1 million compared to the second quarter of 2010. The increase compared to the third quarter of 2009 was primarily attributable to a $8.9 million increase in salaries and employee benefits. The increase in salaries and employee benefits was attributable to a $5.5 million increase in bonus and commissions as variable pay based revenue increased (mortgage banking and wealth management), a $2.3 million increase in salaries caused by the additional employees from the three FDIC-assisted transactions and larger staffing related to Company growth, and $1.1 million increase from employee benefits (primarily health plan related). Additionally, professional fees increased $466,000, primarily related to increased legal costs related to non-performing assets and recent bank acquisitions, and miscellaneous expenses increased $1.3 million. These increases were partially offset by a $5.5 million decrease in expenses related to other real estate owned, or OREO.

Financial Performance Overview — First Nine Months of 2010

The net interest margin for the first nine months of 2010 was 3.34%, compared to 2.98% in the first nine months of 2009. The increase in the net interest margin in the first nine months of 2010 when compared to the first nine months of 2009 is primarily attributable to the acquisition of the life insurance premium finance portfolio and lower costs of interest-bearing deposits. The yield on loans increased 8 basis points, however, the yield on total earning assets decreased by 32 basis points as the yield on liquidity management assets declined by 148 basis points, while the rate paid on total interest-bearing deposits decreased by 78 basis points compared to the first nine months of 2009. Average earning assets for the first nine months of 2010 increased by $2.0 billion compared to the first nine months of 2009. Earning asset growth for the first nine months of 2010 compared to the same period in 2009 was primarily a result of the $1.1 billion increase in average loans, a $669 million increase in liquidity management assets and $178 million of covered loans. The acquisition of a life insurance premium finance portfolio and subsequent growth in this product accounted for $996 million of the total loan growth for the first nine months of 2010 compared to the same period in 2009. The average earning asset growth of $2.0 billion was funded by a $739 million increase in the average balances of savings, NOW, MMA and Wealth Management deposits, an increase in the average balance of net free funds of $326 million, an increase in the average balance of retail certificates of deposit of $356 million, an increase of $600 million due to the secured borrowing notes to the securitization investors and an increase in the average balance of brokered certificates of deposit of $46 million, offset by a decrease in the average balance of other wholesale borrowings of $65 million.

Non-interest income totaled $147.7 million in the first nine months of 2010, decreasing $84.9 million, or 36%, compared to the first nine months of 2009. The decrease was primarily attributable to the inclusion of the $113.1 million of bargain purchase gains recorded relating to life insurance premium finance loan acquisition in the third quarter of 2009. In comparison, during the first nine months of 2010, the Company recorded bargain purchase gains of $44.0 million as described earlier under “Acquisitions.” Wealth management revenue contributed a $6.5 million increase in non-interest income as improvements in the equity markets overall has led to a 32% increase in wealth management revenue compared to the first nine months of 2009. Mortgage banking revenue decreased $13.3 million when compared to the first nine months of 2009. Changes in the fair market value of mortgage servicing rights, valuation fluctuations of mortgage banking derivatives and fair value accounting for certain residential mortgage loans held for sale lowered mortgage banking revenue in the first nine months of 2010. Additionally, expenses recognized for the estimated liability associated with mortgage loans previously sold with recourse to the

secondary market were higher in the current year due to investors pushing back claims to the originators of loans in default. The Company recognized $9.6 million of expense in the first nine months of 2010 compared to no additional expense in the same period in the prior year. Also, net gains on available-for-sale securities increased $10.6 million in the current year, primarily related to the sale of certain collateralized mortgage obligations. Trading income decreased by $18.1 million in the current year primarily due to realizing larger market value increases in the prior year on certain collateralized mortgage obligations held in trading.

Non-interest expense totaled $276.3 million in the first nine months of 2010, increasing $22.6 million, or 9%, compared to the first nine months of 2009. The increase compared to the first nine months of 2009 was primarily attributable to a $17.8 million increase in salaries and employee benefits. The increase in salaries and employee benefits was attributable to a $7.9 million increase in salaries caused by the additional employees from the three FDIC-assisted transactions and larger staffing as the Company grows, a $6.3 million increase in bonus and commissions as variable pay based revenue increased (mortgage banking and wealth management), and $3.6 million increase from employee benefits (primarily health plan and payroll taxes). Additionally, professional fees increased $1.8 million primarily related to increased legal costs related to non-performing assets and recent bank acquisitions, and miscellaneous expenses increased $4.1 million. These increases were partially offset by a $1.7 million decrease in expenses related to OREO and a decrease of $3.0 million in FDIC insurance expenses as the FDIC imposed an industry-wide special assessment on financial institutions in the prior year second quarter.

Financial Performance Overview — Credit Quality

Non-performing loans, excluding covered loans, totaled $134.3 million, or 1.42% of total loans, at September 30, 2010, compared to $135.4 million, or 1.45% of total loans, at June 30, 2010 and $231.7 million, or 2.80% of total loans, at September 30, 2009. OREO, excluding covered OREO, of $76.7 million at September 30, 2010 decreased $9.8 million compared to June 30, 2010 and increased $36.0 million compared to September 30, 2009.

Since the latter half of 2009, management has focused on significantly lowering the Company’s level of non-performing loans. This was accomplished through a focus on gaining control or obtaining possession of collateral from borrowers whose loans were in non-accrual status. Progress towards this goal enabled a number of these

properties to be transferred to OREO. The properties the Company obtains via foreclosure or via deed in lieu of foreclosure are aggressively marketed for sale. Additionally, beginning in the fourth quarter of 2009, management has worked with financially distressed borrowers to restructure current loans. These actions help distressed borrowers maintain their homes or businesses and keep these loans in an accruing status for the Company. As of September 30, 2010, a total of $93.7 million of outstanding loan balances qualified as restructured loans, with $74.0 million of these modified loans in an accruing status.

The provision for credit losses totaled $25.5 million for the third quarter of 2010 compared to $41.3 million for the second quarter of 2010 and $91.2 million in the third quarter of 2009. Net charge-offs as a percentage of loans, excluding covered loans, for the third quarter of 2010 totaled 89 basis points on an annualized basis compared to 365 basis points on an annualized basis in the third quarter of 2009 and 163 basis points on an annualized basis in the second quarter of 2010. In the second quarter of 2010, a fraud perpetrated against a number of premium finance companies in the industry, including the property and casualty division of our premium financing subsidiary, increased both our net charge-offs and our provision for loan losses by $15.7 million.

The allowance for credit losses at September 30, 2010 totaled $112.8 million, or 1.19% of total loans, excluding covered loans, compared to $108.7 million, or 1.17% of total loans, at June 30, 2010 and $98.2 million, or 1.19% of total loans, at September 30, 2009.

WINTRUST FINANCIAL CORPORATION
Selected Financial Highlights


	Three Months Ended						Nine Months Ended
	September 30,						September 30,
	2010			2009			2010			2009
Selected Financial Condition Data (at end of period):
Total assets	$	14,100,368		$	12,136,021
Total loans, excluding covered loans		9,461,155			8,275,257
Total deposits		10,962,239			9,847,163
Junior subordinated debentures		249,493			249,493
Total shareholders’ equity		1,398,912			1,106,082

Selected Statements of Income Data:
Net interest income	$	102,980		$	87,663		$	303,159		$	224,942
Net revenue⁽¹⁾		157,636			238,343			450,859			457,501
Core pre-tax earnings⁽²⁾		47,572			37,137			137,287			81,996
Net income		20,098			31,995			49,125			44,902
Net income per common share — Basic	$	0.49		$	1.14		$	1.17		$	1.26
Net income per common share — Diluted	$	0.47		$	1.07		$	1.12		$	1.25

Selected Financial Ratios and Other Data:
Performance Ratios:
Net interest margin⁽²⁾		3.22	%		3.25	%		3.34	%		2.98	%
Non-interest income to average assets		1.56	%		5.07	%		1.48	%		2.79	%
Non-interest expense to average assets		2.85	%		3.11	%		2.77	%		3.04	%
Net overhead ratio⁽³⁾		1.28	%		(1.95	)%		1.29	%		0.25	%
Efficiency ratio^{(2) (4)}		67.01	%		38.69	%		62.45	%		55.15	%
Return on average assets		0.57	%		1.08	%		0.49	%		0.54	%
Return on average common equity		5.44	%		13.79	%		4.43	%		5.16	%

Average total assets	$	14,015,757		$	11,797,520		$	13,322,460		$	11,154,193
Average total shareholders’ equity		1,391,507			1,070,095			1,320,611			1,066,447
Average loans to average deposits ratio (excluding covered loans)		88.7	%		90.5	%		91.0	%		91.9	%
Average loans to average deposits ratio (including covered loans)		91.7	%		90.5	%		92.8	%		91.9	%

*Common Share Data at end of period:*
Market price per common share	$	32.41		$	27.96
Book value per common share	$	35.70		$	34.10
Common shares outstanding		31,143,740			24,103,068

Other Data at end of period:⁽⁹⁾
Leverage Ratio⁽⁵⁾		10.0	%		9.3	%
Tier 1 capital to risk-weighted assets⁽⁵⁾		12.7	%		10.8	%
Total capital to risk-weighted assets⁽⁵⁾		14.1	%		12.3	%
Tangible common equity ratio (TCE)⁽⁸⁾		5.9	%		4.5	%
Allowance for credit losses⁽⁶⁾	$	112,807		$	98,225
Credit discounts on purchased premium finance receivables — life insurance⁽⁷⁾	$	26,399		$	36,195
Non-performing loans	$	134,323		$	231,659
Allowance for credit losses to total loans⁽⁶⁾		1.19	%		1.19	%
Non-performing loans to total loans		1.42	%		2.80	%
Number of:
Bank subsidiaries		15			15
Non-bank subsidiaries		8			8
Banking offices		85			78


⁽¹⁾		Net revenue includes net interest income and non-interest income

⁽²⁾		See “Supplemental Financial Measures/Ratios” for additional information on this performance measure/ratio.

⁽³⁾		The net overhead ratio is calculated by netting total non-interest expense and total non-interest income, annualizing this amount, and dividing by that period’s total average assets. A lower ratio indicates a higher degree of efficiency.

⁽⁴⁾		The efficiency ratio is calculated by dividing total non-interest expense by tax-equivalent net revenue (less securities gains or losses). A lower ratio indicates more efficient revenue generation.

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

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

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

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

⁽⁹⁾		Asset quality ratios exclude covered loans.

WINTRUST FINANCIAL CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CONDITION


	(Unaudited)						(Unaudited)
	September 30,			December 31,			September 30,
(In thousands)	2010			2009			2009

Assets
Cash and due from banks	$	155,067		$	135,133		$	128,898
Federal funds sold and securities purchased under resale agreements		88,913			23,483			22,863
Interest-bearing deposits with other banks		1,224,584			1,025,663			1,168,362
Available-for-sale securities, at fair value		1,324,179			1,255,066			1,362,359
Trading account securities		4,935			33,774			29,204
Brokerage customer receivables		25,442			20,871			19,441
Federal Home Loan Bank and Federal Reserve Bank stock, at cost		80,445			73,749			71,889
Loans held-for-sale		320,440			275,715			193,255
Loans, net of unearned income, excluding covered loans		9,461,155			8,411,771			8,275,257
Covered loans		353,840			—			—

Total loans		9,814,995			8,411,771			8,275,257
Less: Allowance for loan losses		110,432			98,277			95,096

Net loans		9,704,563			8,313,494			8,180,161
Premises and equipment, net		353,445			350,345			352,890
FDIC indemnification asset		161,640			—			—
Accrued interest receivable and other assets		365,496			416,678			315,806
Goodwill		278,025			278,025			276,525
Other intangible assets		13,194			13,624			14,368

Total assets	$	14,100,368		$	12,215,620		$	12,136,021


Liabilities and Shareholders’ Equity
Deposits:
Non-interest bearing	$	1,042,730		$	864,306		$	841,668
Interest bearing		9,919,509			9,052,768			9,005,495

Total deposits		10,962,239			9,917,074			9,847,163
Notes payable		1,000			1,000			1,000
Federal Home Loan Bank advances		414,832			430,987			433,983
Other borrowings		241,522			247,437			252,071
Secured borrowings — owed to securitization investors		600,000			—			—
Subordinated notes		55,000			60,000			65,000
Junior subordinated debentures		249,493			249,493			249,493
Trade date securities payable		2,045			—			—
Accrued interest payable and other liabilities		175,325			170,990			181,229

Total liabilities		12,701,456			11,076,981			11,029,939


Shareholders’ Equity:
Preferred stock		287,234			284,824			284,061
Common stock		31,145			27,079			26,965
Surplus		682,318			589,939			580,988
Treasury stock		(51	)		(122,733	)		(122,437	)
Retained earnings		394,323			366,152			342,873
Accumulated other comprehensive income (loss)		3,943			(6,622	)		(6,368	)

Total shareholders’ equity		1,398,912			1,138,639			1,106,082

Total liabilities and shareholders’ equity	$	14,100,368		$	12,215,620		$	12,136,021

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)	2010		2009			2010		2009

Interest income
Interest and fees on loans	$	137,902	$	126,448		$	403,244	$	343,637
Interest bearing deposits with banks		1,339		778			3,828		2,205
Federal funds sold and securities purchased under resale agreements		35		106			118		233
Securities		7,438		13,677			29,668		42,977
Trading account securities		19		7			383		86
Brokerage customer receivables		180		132			484		372
Federal Home Loan Bank and Federal Reserve Bank stock		488		429			1,419		1,275

Total interest income		147,401		141,577			439,144		390,785

Interest expense
Interest on deposits		31,088		42,806			95,926		132,261
Interest on Federal Home Loan Bank advances		4,042		4,536			12,482		13,492
Interest on notes payable and other borrowings		1,411		1,779			4,312		5,401
Interest on secured borrowings — owed to securitization investors		3,167		—			9,276		—
Interest on subordinated notes		265		333			762		1,341
Interest on junior subordinated debentures		4,448		4,460			13,227		13,348

Total interest expense		44,421		53,914			135,985		165,843

Net interest income		102,980		87,663			303,159		224,942
Provision for credit losses		25,528		91,193			95,870		129,329

Net interest income after provision for credit losses		77,452		(3,530	)		207,289		95,613

Non-interest income
Wealth management		8,973		7,501			26,833		20,310
Mortgage banking		20,980		13,204			38,693		52,032
Service charges on deposit accounts		3,384		3,447			10,087		9,600
Gain on sales of commercial premium finance receivables		—		3,629			—		4,147
Gains (losses) on available-for-sale securities, net		9,235		(412	)		9,673		(910	)
Gain on bargain purchases		6,593		113,062			43,981		113,062
Trading gains (losses)		712		6,236			5,147		23,254
Other		4,779		4,013			13,286		11,064

Total non-interest income		54,656		150,680			147,700		232,559

Non-interest expense
Salaries and employee benefits		57,014		48,088			156,735		138,923
Equipment		4,203		4,069			12,144		12,022
Occupancy, net		6,254		5,884			18,517		17,682
Data processing		3,891		3,226			10,967		9,578
Advertising and marketing		1,650		1,488			4,434		4,003
Professional fees		4,555		4,089			11,619		9,843
Amortization of other intangible assets		701		677			2,020		2,040
FDIC insurance		4,642		4,334			13,456		16,468
OREO expenses, net		4,767		10,243			11,948		13,671
Other		12,046		10,465			34,484		29,540

Total non-interest expense		99,723		92,563			276,324		253,770

Income before taxes		32,385		54,587			78,665		74,402
Income tax expense		12,287		22,592			29,540		29,500

Net income	$	20,098	$	31,995		$	49,125	$	44,902

Preferred stock dividends and discount accretion	$	4,943	$	4,668		$	14,830	$	14,668

Net income applicable to common shares	$	15,155	$	27,327		$	34,295	$	30,234

Net income per common share — Basic	$	0.49	$	1.14		$	1.17	$	1.26

Net income per common share — Diluted	$	0.47	$	1.07		$	1.12	$	1.25

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

Weighted average common shares outstanding		31,117		24,052			29,396		23,958
Dilutive potential common shares		988		2,493			1,132		323

Average common shares and dilutive common shares		32,105		26,545			30,528		24,281

SUPPLEMENTAL FINANCIAL MEASURES/RATIOS

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

Management reviews yields on certain asset categories and the net interest margin of the Company and its banking subsidiaries on a fully taxable-equivalent (“FTE”) basis. In this non-GAAP presentation, net interest income is adjusted to reflect tax-exempt interest income on an equivalent before-tax basis. This measure ensures comparability of net interest income arising from both taxable and tax-exempt sources. Net interest income on a FTE basis is also used in the calculation of the Company’s efficiency ratio. The efficiency ratio, which is calculated by dividing non-interest expense by total taxable-equivalent net revenue (less securities gains or losses), measures how much it costs to produce one dollar of revenue. Securities gains or losses are excluded from this calculation to better match revenue from daily operations to operational expenses. Core pre-tax earnings is adjusted to exclude the provision for credit losses and certain significant items.

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,			June 30,			March 31,			December 31,			September 30,			September 30,
(Dollars in thousands)	2010			2010			2010			2009			2009			2010			2009

(A) Interest Income (GAAP)	$	147,401		$	149,248		$	142,496		$	136,829		$	141,577		$	439,144		$	390,785
Taxable-equivalent adjustment:
- Loans		85			90			80			99			93			254			360
- Liquidity management assets		324			366			361			406			413			1,051			1,314
- Other earning assets		7			5			5			9			9			16			30

Interest Income — FTE	$	147,817		$	149,709		$	142,942		$	137,343		$	142,092		$	440,465		$	392,489
(B) Interest Expense (GAAP)	$	44,421		$	44,934		$	46,631		$	49,895		$	53,914		$	135,985		$	165,843

Net interest income — FTE		103,396			104,775			96,311			87,448			88,178			304,480			226,646

(C) Net Interest Income (GAAP) (A minus B)	$	102,980		$	104,314		$	95,865		$	86,934		$	87,663		$	303,159		$	224,942

(D) Net interest margin (GAAP)		3.20	%		3.42	%		3.36	%		3.08	%		3.23	%		3.32	%		2.95	%
Net interest margin — FTE		3.22	%		3.43	%		3.38	%		3.10	%		3.25	%		3.34	%		2.98	%
(E) Efficiency ratio (GAAP)		67.20	%		59.90	%		60.79	%		52.70	%		38.77	%		62.63	%		55.36	%
Efficiency ratio — FTE		67.01	%		59.72	%		60.59	%		52.54	%		38.69	%		62.45	%		55.15	%

Calculation of Tangible Common Equity ratio (at period end)
Total shareholders equity	$	1,398,912		$	1,384,736		$	1,364,832		$	1,138,639		$	1,106,082
Less: Preferred stock		(287,234	)		(286,460	)		(285,642	)		(284,824	)		(284,061	)
Less: Intangible assets		(291,219	)		(291,300	)		(291,003	)		(291,649	)		(290,893	)

(F) Total tangible shareholders equity	$	820,459		$	806,976		$	788,187		$	562,166		$	531,128


Total assets	$	14,100,368		$	13,708,560		$	12,839,978		$	12,215,620		$	12,136,021
Less: Intangible assets		(291,219	)		(291,300	)		(291,003	)		(291,649	)		(290,893	)

(G) Total tangible assets	$	13,809,149		$	13,417,260		$	12,548,975		$	11,923,971		$	11,845,128

Tangible common equity ratio (F/G)		5.9	%		6.0	%		6.3	%		4.7	%		4.5	%

Income before taxes	$	32,385		$	20,790		$	25,490		$	43,102		$	54,587		$	78,665		$	74,402
Add: Provision for credit losses		25,528			41,297			29,044			38,603			91,193			95,870			129,329
Add: OREO expenses, net		4,767			5,843			1,337			5,293			10,243			11,948			13,671
Add: Recourse obligation on loans previously sold		1,432			4,721			3,452			937			—			9,605			—
Less: Gain on bargain purchases		(6,593	)		(26,494	)		(10,894	)		(42,951	)		(113,062	)		(43,981	)		(113,062	)
Less: Trading (gains) losses		(712	)		1,538			(5,973	)		(4,437	)		(6,236	)		(5,147	)		(23,254	)
Less: (Gains) losses on available-for-sale securities, net		(9,235	)		(46	)		(392	)		(642	)		412			(9,673	)		910

Core pre-tax earnings	$	47,572		$	47,649		$	42,064		$	39,905		$	37,137		$	137,287		$	81,996

LOANS


Loan Portfolio Mix and Growth Rates										% Growth
										From⁽¹⁾			From
	September 30,			December 31,			September 30,			December 31,			September 30,
(Dollars in thousands)	2010			2009			2009			2009			2009
Balance:
Commercial	$	1,952,791		$	1,743,208		$	1,643,721			16	%		19	%
Commercial real estate		3,331,498			3,296,698			3,392,138			1			(2	)
Home equity		919,824			930,482			928,548			(2	)		(1	)
Residential real-estate		342,009			306,296			281,151			16			22
Premium finance receivables — commercial		1,323,934			730,144			752,032			109			76
Premium finance receivables — life insurance		1,434,994			1,197,893			1,045,653			26			37
Indirect consumer⁽²⁾		56,575			98,134			115,528			(57	)		(51	)
Consumer and other		99,530			108,916			116,486			(12	)		(15	)

Total loans, net of unearned income, excluding covered loans	$	9,461,155		$	8,411,771		$	8,275,257			17	%		14	%

Covered loans		353,840		$	—			—			100			100

Total loans, net of unearned income	$	9,814,995		$	8,411,771		$	8,275,257			22	%		19	%

Mix:
Commercial		20	%		21	%		20	%
Commercial real estate		34			39			41
Home equity		9			11			11
Residential real-estate		3			4			4
Premium finance receivables — commercial		13			9			9
Premium finance receivables — life insurance		15			14			13
Indirect consumer⁽²⁾		1			1			1
Consumer and other		1			1			1

Total loans, net of unearned income, excluding covered loans		96	%		100	%		100	%

Covered loans		4		$	—			—

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


⁽¹⁾		Annualized

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


Commercial and Real-Estate Loans, excluding covered loans								> 90 Days		Allowance
As of September 30, 2010			% of					Past Due		For Loan
			Total					and Still		Losses
(Dollars in thousands)	Balance		Loans			Nonaccrual		Accruing		Allocation
Commercial:
Commercial and industrial	$	1,540,584		16.3	%	$	18,779	$	—	$	28,165
Franchise		115,380		1.2			—		—		1,238
Mortgage warehouse lines of credit		158,597		1.7			—		—		1,631
Community Advantage — homeowner associations		66,484		0.7			—		—		177
Aircraft		36,522		0.4			—		—		363
Other		35,224		0.3			665		—		432

Total commercial	$	1,952,791		20.6	%	$	19,444	$	—	$	32,006


Commercial Real-Estate:
Residential construction	$	102,911		1.1	%	$	4,921	$	—	$	2,764
Commercial construction		179,667		1.9			11,230		—		4,097
Land		263,363		2.8			27,134		—		11,342
Office		537,868		5.6			5,745		—		7,231
Industrial		472,556		5.0			3,565		—		5,264
Retail		492,633		5.2			2,084		—		6,732
Multi-family		279,127		3.0			9,339		—		4,283
Mixed use and other		1,003,373		10.6			19,322		—		14,818

Total commercial real-estate	$	3,331,498		35.2	%	$	83,340	$	—	$	56,531

Total commercial and commercial real-estate	$	5,284,289		55.8	%	$	102,784	$	—	$	88,537


Commercial real-estate — collateral location by state:
Illinois	$	2,692,839		80.8	%
Wisconsin		363,498		10.9

Total primary markets	$	3,056,337		91.7	%

Florida		69,204		2.1
Arizona		43,294		1.3
Indiana		42,990		1.3
Other (no individual state greater than 0.7%)		119,673		3.6

Total	$	3,331,498		100.0	%

DEPOSITS


Deposit Portfolio Mix and Growth Rates										% Growth
										From⁽¹⁾			From
	September 30,			December 31,			September 30,			December 31,			September 30,
(Dollars in thousands)	2010			2009			2009			2009			2009
Balance:
Non-interest bearing	$	1,042,730		$	864,306		$	841,668			28	%		24	%
NOW		1,551,749			1,415,856			1,245,689			13			25
Wealth Management deposits⁽²⁾		710,435			971,113			935,740			(36	)		(24	)
Money Market		1,746,168			1,534,632			1,468,228			18			19
Savings		713,823			561,916			513,239			36			39
Time certificates of deposit		5,197,334			4,569,251			4,842,599			18			7

Total deposits	$	10,962,239		$	9,917,074		$	9,847,163			14	%		11	%

Mix:
Non-interest bearing		10	%		9	%		9	%
NOW		14			14			13
Wealth Management deposits⁽²⁾		6			10			9
Money Market		16			15			15
Savings		7			6			5
Time certificates of deposit		47			46			49

Total deposits		100	%		100	%		100	%


⁽¹⁾		Annualized

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


Deposit Maturity Analysis											Weighted-
As of September 30, 2010	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	$	2,594,479	$	2,459,991	$	710,435	$	1,211,805	$	6,976,710		1.55	%
4-6 months								829,519		829,519		1.57
7-9 months								674,904		674,904		1.84
10-12 months								548,572		548,572		1.60
13-18 months								661,811		661,811		1.84
19-24 months								513,866		513,866		1.88
24+ months								756,857		756,857		2.40

Total deposits	$	2,594,479	$	2,459,991	$	710,435	$	5,197,334	$	10,962,239		1.79	%


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

⁽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 2010 compared to the third quarter of 2009 (linked quarters):


	For the Three Months Ended								For the Three Months Ended
	September 30, 2010								September 30, 2009
(Dollars in thousands)	Average			Interest		Rate			Average			Interest		Rate
Liquidity management assets^{(1) (2) (7)}	$	2,802,964		$	9,625		1.36	%	$	2,078,330		$	15,403		2.94	%
Other earning assets^{(2) (3) (7)}		34,263			205		2.37			24,874			148		2.36
Loans, net of unearned income^{(2) (4) (7)}		9,603,561			134,016		5.54			8,665,281			126,541		5.79
Covered loans		325,751			3,971		4.84			—			—		—

Total earning assets⁽⁷⁾	$	12,766,539		$	147,817		4.59	%	$	10,768,485		$	142,092		5.24	%

Allowance for loan losses		(113,631	)							(85,300	)
Cash and due from banks		154,078								109,645
Other assets		1,208,771								1,004,690

Total assets	$	14,015,757							$	11,797,520


Interest-bearing deposits	$	9,823,525		$	31,088		1.26	%	$	8,799,578		$	42,806		1.93	%
Federal Home Loan Bank advances		414,789			4,042		3.87			434,134			4,536		4.14
Notes payable and other borrowings		232,991			1,411		2.40			245,352			1,779		2.88
Secured borrowings — owed to securitization investors		600,000			3,167		2.09			—			—		—
Subordinated notes		55,000			265		1.89			65,000			333		2.01
Junior subordinated notes		249,493			4,448		6.98			249,493			4,460		6.99

Total interest-bearing liabilities	$	11,375,798		$	44,421		1.55	%	$	9,793,557		$	53,914		2.18	%

Non-interest bearing liabilities		1,005,170								775,202
Other liabilities		243,282								158,666
Equity		1,391,507								1,070,095

Total liabilities and shareholders’ equity	$	14,015,757							$	11,797,520


Interest rate spread^{(5) (7)}							3.04	%							3.06	%
Net free funds/contribution⁽⁶⁾	$	1,390,741					0.18	%	$	974,928					0.19	%

Net interest income/Net interest margin⁽⁷⁾				$	103,396		3.22	%				$	88,178		3.25	%


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

⁽²⁾		Interest income on tax-advantaged loans, trading securities and securities reflects a tax-equivalent adjustment based on a marginal federal corporate tax rate of 35%. The total adjustments for the three months ended September 30, 2010 and 2009 were $416,000 and $515,000, respectively.

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

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

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

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

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

The higher level of net interest income recorded in the third quarter of 2010 compared to the third quarter of 2009 was primarily attributable to the impact of the presence of the life insurance premium finance assets acquired in the second half of 2009 and lower retail deposit costs during the third quarter of 2010. Approximately $714 million of the increase in average total loans is attributable to life insurance premium finance loans including those purchased in the transaction or originated by the Company.

In the third quarter of 2010, the yield on earning assets decreased 65 basis points as the yield on liquidity management assets declined by 158 basis points and the rate on interest-bearing liabilities decreased 63 basis points compared to the third quarter of 2009. Retail deposit re-pricing opportunities over the past 12 months, due to a sustained low interest rate environment and more stable financial markets, contributed to the majority of this decreased cost. The rate paid on interest-bearing deposits decreased 67 basis points when compared to the third quarter of 2009.


	For the Three Months Ended								For the Three Months Ended
	September 30, 2010								June 30, 2010
(Dollars in thousands)	Average			Interest		Rate			Average			Interest		Rate
Liquidity management assets ^{(1) (2) (7)}	$	2,802,964		$	9,625		1.36	%	$	2,613,179		$	13,305		2.04	%
Other earning assets ^{(2) (3) (7)}		34,263			205		2.37			62,874			515		3.28
Loans, net of unearned income ^{(2) (4) (7)}		9,603,561			134,016		5.54			9,356,033			133,207		5.71
Covered loans		325,751			3,971		4.84			210,030			2,682		5.12

Total earning assets ⁽⁷⁾	$	12,766,539		$	147,817		4.59	%	$	12,242,116		$	149,709		4.91	%

Allowance for loan losses		(113,631	)							(108,764	)
Cash and due from banks		154,078								137,531
Other assets		1,208,771								1,119,654

Total assets	$	14,015,757							$	13,390,537


Interest-bearing deposits	$	9,823,525		$	31,088		1.26	%	$	9,348,541		$	31,626		1.36	%
Federal Home Loan Bank advances		414,789			4,042		3.87			417,835			4,094		3.93
Notes payable and other borrowings		232,991			1,411		2.40			217,751			1,439		2.65
Secured borrowings — owed to securitization investors		600,000			3,167		2.09			600,000			3,115		2.08
Subordinated notes		55,000			265		1.89			57,198			256		1.77
Junior subordinated notes		249,493			4,448		6.98			249,493			4,404		6.98

Total interest-bearing liabilities	$	11,375,798		$	44,421		1.55	%	$	10,890,818		$	44,934		1.65	%

Non-interest bearing liabilites		1,005,170								932,046
Other liabilities		243,282								195,984
Equity		1,391,507								1,371,689

Total liabilities and shareholders’ equity	$	14,015,757							$	13,390,537


Interest rate spread ^{(5) (7)}							3.04	%							3.26	%
Net free funds/contribution ⁽⁶⁾	$	1,390,741					0.18	%	$	1,351,298					0.17	%

Net interest income/Net interest margin ⁽⁷⁾				$	103,396		3.22	%				$	104,775		3.43	%


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

⁽²⁾		Interest income on tax-advantaged loans, trading securities and securities reflects a tax-equivalent adjustment based on a marginal federal corporate tax rate of 35%. The total adjustments for the three months ended September 30, 2010 was $416,000 and for the three months ended June 30, 2010 was $461,000.

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

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

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

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

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

The decline in net interest margin in the third quarter of 2010 compared to the second quarter of 2010 was primarily caused by $3.2 million less accretion on the purchased life insurance premium finance portfolio as less prepayments occurred (reduced net interest margin by 10 basis points), higher balances and lower yields on liquidity management assets (reduced net interest margin by 14 basis points), the negative impact of selling certain collateralized mortgage obligations (reduced net interest margin by nine basis points), offset by lower costs for interest-bearing deposits (increased net interest margin by 11 basis points) and higher contribution from net free funds (increased net interest margin by 1 basis point). The decline in the yield on loans is primarily attributable to reduced accretion on the purchased life insurance premium finance portfolio.

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, 2010 compared to the nine months ended September 30, 2009:


	For the Nine Months Ended								For the Nine Months Ended
	September 30, 2010								September 30, 2009
(Dollars in thousands)	Average			Interest		Rate			Average			Interest		Rate
Liquidity management assets^{(1) (2) (7)}	$	2,592,751		$	36,084		1.86	%	$	1,923,869		$	48,004		3.34	%
Other earning assets^{(2) (3) (7)}		50,192			883		2.35			23,242			488		2.81
Loans, net of unearned income^{(2) (4) (7)}		9,371,291			396,845		5.66			8,244,336			343,997		5.58
Covered loans		178,492			6,653		4.98			—			—		—

Total earning assets⁽⁷⁾	$	12,192,726		$	440,465		4.83	%	$	10,191,447		$	392,489		5.15	%

Allowance for loan losses		(109,982	)							(76,886	)
Cash and due from banks		135,476								103,164
Other assets		1,104,240								936,468

Total assets	$	13,322,460							$	11,154,193

Interest-bearing deposits	$	9,358,313		$	95,926		1.37	%	$	8,217,631		$	132,261		2.15	%
Federal Home Loan Bank advances		420,554			12,482		3.97			435,359			13,492		4.14
Notes payable and other borrowings		225,579			4,312		2.56			266,264			5,401		2.71
Secured borrowings — owed to securitization investors		600,000			9,276		2.07			—					—
Subordinated notes		57,381			762		1.75			67,198			1,341		2.63
Junior subordinated notes		249,493			13,227		6.99			249,498			13,348		7.05

Total interest-bearing liabilities	$	10,911,320		$	135,985		1.66	%	$	9,235,950		$	165,843		2.40	%

Non-interest bearing liabilities		934,734								754,666
Other liabilities		155,795								97,130
Equity		1,320,611								1,066,447

Total liabilities and shareholders’ equity	$	13,322,460							$	11,154,193

Interest rate spread^{(5) (7)}							3.17	%							2.75	%
Net free funds/contribution⁽⁶⁾	$	1,281,406					0.17	%	$	955,497					0.23	%

Net interest income/Net interest margin⁽⁷⁾				$	304,480		3.34	%				$	226,646		2.98	%


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

⁽²⁾		Interest income on tax-advantaged loans, trading securities and securities reflects a tax-equivalent adjustment based on a marginal federal corporate tax rate of 35%. The total adjustments for the nine months ended September 30, 2010 and 2009 were $1.3 million and $1.7 million, respectively.

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

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

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

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

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

NON-INTEREST INCOME

For the third quarter of 2010, non-interest income totaled $54.7 million, a decrease of $96.0 million, or 64%, compared to the third quarter of 2009. The decrease was primarily attributable to the bargain purchase gain related to the life insurance premium finance loan acquisition in the third quarter of 2009 and lower trading gains, partially offset by an increase in mortgage banking revenue and gains on available-for-sale securities.

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


	Three Months Ended
	September 30					$			%
(Dollars in thousands)	2010		2009			Change			Change
Brokerage	$	5,806	$	4,593		$	1,213			26
Trust and asset management		3,167		2,908			259			9

Total wealth management		8,973		7,501			1,472			20

Mortgage banking		20,980		13,204			7,776			59
Service charges on deposit accounts		3,384		3,447			(63	)		(2	)
Gains on sales of premium finance receivables		—		3,629			(3,629	)		(100	)
Gains (losses) on available-for-sale securities		9,235		(412	)		9,647		NM
Gain on bargain purchases		6,593		113,062			(106,469	)		(94	)
Trading gains		712		6,236			(5,524	)		(89	)
Other:
Fees from covered call options		703		—			703			100
Bank Owned Life Insurance		552		552			—			—
Administrative services		744		527			217			41
Miscellaneous		2,780		2,934			(154	)		(5	)

Total Other		4,779		4,013			766			19


Total Non-Interest Income	$	54,656	$	150,680		$	(96,024	)		(64	)


	Nine Months Ended
	September 30					$			%
(Dollars in thousands)	2010		2009			Change			Change
Brokerage	$	17,072	$	12,693		$	4,379			34
Trust and asset management		9,761		7,617			2,144			28

Total wealth management		26,833		20,310			6,523			32

Mortgage banking		38,693		52,032			(13,339	)		(26	)
Service charges on deposit accounts		10,087		9,600			487			5
Gains on sales of premium finance receivables		—		4,147			(4,147	)		(100	)
Gains (losses) on available-for-sale securities		9,673		(910	)		10,583		NM
Gain on bargain purchases		43,981		113,062			(69,081	)		(61	)
Trading gains		5,147		23,254			(18,107	)		(78	)
Other:
Fees from covered call options		1,162		1,998			(836	)		(42	)
Bank Owned Life Insurance		1,593		1,403			190			14
Administrative services		2,034		1,463			571			39
Miscellaneous		8,497		6,200			2,297			37

Total Other		13,286		11,064			2,222			20


Total Non-Interest Income	$	147,700	$	232,559		$	(84,859	)		(36	)

NM = Not Meaningful

Wealth management revenue is comprised of the trust and asset management revenue of The Chicago Trust Company and the asset management fees, brokerage commissions, trading commissions and insurance product commissions at Wayne Hummer Investments and Wintrust Capital Management. Wealth management revenue totaled $9.0 million in the third quarter of 2010 and $7.5 million in the third quarter of 2009. Increased asset valuations due to equity market improvements have helped revenue growth from trust and asset management activities. Additionally, the improvement in the equity markets overall have led to the increase of the brokerage component of wealth management revenue as customer trading activity has increased.

Mortgage banking revenue includes revenue from activities related to originating, selling and servicing residential real estate loans for the secondary market. For the quarter ended September 30, 2010, this revenue source totaled $21.0 million, an increase of $7.8 million when compared to the third quarter of 2009. Mortgages originated and sold totaled $1.1 billion in the third quarter of 2010 compared to $732 million in the second quarter of 2010 and $960 million in the third quarter of 2009. The increase in mortgage banking revenue in the third quarter of 2010 as compared to the third quarter of 2009 resulted primarily from an increase in gains on sales of loans, which was driven by higher origination volumes and better pricing realized as a result of the Company utilizing mandatory execution of forward commitments with investors in 2010. The increase in gains on sales was partially offset by changes in the fair market value of mortgage servicing rights, valuation fluctuations of mortgage banking derivatives and fair value accounting for certain residential mortgage loans held for sale and an increase in loss indemnification claims by purchasers of the Company’s loans. The Company enters into residential mortgage loan sale agreements with investors in the normal course of business. These agreements provide recourse to investors through certain representations concerning credit information, loan documentation, collateral and insurability. Investors request the Company to indemnify them against losses on certain loans or to repurchase loans which the investors believe do not comply with applicable representations. An increase in requests for loss indemnification can negatively impact mortgage banking revenue as additional recourse expense. Fewer requests from investors for loss indemnification occurred in the current quarter as compared to the second quarter of 2010. The Company recognized $1.4 million of expense in the third quarter of 2010, a decrease of $3.3 million compared to the second quarter of 2010 and has recognized $9.6 million on a year-to-date basis in 2010. This liability on loans expected to be repurchased from loans sold to investors is based on trends in repurchase and indemnification requests, actual loss experience, known and inherent risks in the loan, and current economic conditions.

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

Mortgage banking revenue


	Three Months Ended						Nine Months Ended
	September 30,						September 30,
(Dollars in thousands)	2010			2009			2010			2009
Mortgage loans originated and sold	$	1,076,736		$	960,218		$	2,495,880		$	3,713,883

Mortgage loans serviced	$	787,923		$	715,351
Fair value of mortgage servicing rights (MSRs)	$	5,179		$	6,030
MSRs as a percentage of loans serviced		0.66	%		0.84	%

Mortgage banking revenue:
Gain on sales of loans	$	28,096		$	13,957		$	59,287		$	54,187
Derivative/fair value, net		(4,212	)		86			(7,200	)		(98	)
Mortgage servicing rights		(1,472	)		(839	)		(3,789	)		(2,057	)
Recourse obligation on loans previously sold		(1,432	)		—			(9,605	)		—

Total mortgage banking revenue	$	20,980		$	13,204		$	38,693		$	52,032


Gain on sales of loans as a percentage of loans sold⁽¹⁾		2.22	%		1.46	%		2.09	%		1.46	%


⁽¹⁾		Includes derivative/fair value, net

All mortgage loan servicing by the Company is performed by four of its subsidiary banks. Mortgage servicing rights are carried on the balance sheet at fair value. All loans originated and sold into the secondary market by its mortgage subsidiary Wintrust Mortgage Company have been sold with mortgage servicing rights released (sold to the investors).

Service charges on deposit accounts totaled $3.4 million for the third quarter of 2010, a decrease of $63,000, or 2%, when compared to the same quarter of 2009. 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.

As a result of the new accounting requirements beginning January 1, 2010 that now require loans sold and transferred into the securitization facility be accounted for as secured borrowings with the securitization investors, the Company no longer recognizes gains on sales of premium finance receivables (see “Securitization — Sale of Loans”).

The Company recognized $9.2 million of net gains on available-for-sale securities in the third quarter of 2010 compared to a net loss of $412,000 in the prior year quarter. The net gains in the third quarter of 2010 were primarily related to the sale of certain collateralized mortgage obligations.

The gain on bargain purchase of $6.6 million recognized in the third quarter of 2010 relates to the FDIC-assisted bank acquisition of Ravenswood during the period. The gain on bargain purchase of $113.1 million in the third quarter of 2009 related to the life insurance premium finance loan acquisition. See “Acquisitions” for a discussion of these transactions.

Trading gains of $712,000 were recognized by the Company in the third quarter of 2010 compared to gains of $6.2 million in the third quarter of 2009. Lower trading gains in 2010 resulted primarily from realizing larger market value increases in the prior year on certain collateralized mortgage obligations held in trading.

Other non-interest income for the third quarter of 2010 totaled $4.8 million, compared to $4.0 million in the third quarter of 2009. Fees from certain covered call option transactions increased by $703,000 in the third quarter of 2010 as compared to the same period in the prior year. Historically, compression in the net interest margin was effectively offset, as has consistently been the case, by the Company’s covered call strategy. In the third quarter of 2010 management chose to engage in limited covered call option activity. 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 2010 totaled $99.7 million and increased approximately $7.2 million, or 8%, compared to the third quarter 2009.

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


	Three Months Ended
	September 30				$			%
(Dollars in thousands)	2010		2009		Change			Change
Salaries and employee benefits:
Salaries	$	30,537	$	28,189		2,348			8
Commissions and bonus		17,366		11,887		5,479			46
Benefits		9,111		8,012		1,099			14

Total salaries and employee benefits		57,014		48,088		8,926			19
Equipment		4,203		4,069		134			3
Occupancy, net		6,254		5,884		370			6
Data processing		3,891		3,226		665			21
Advertising and marketing		1,650		1,488		162			11
Professional fees		4,555		4,089		466			11
Amortization of other intangible assets		701		677		24			4
FDIC insurance		4,642		4,334		308			7
OREO expenses, net		4,767		10,243		(5,476	)		(53	)
Other:
Commissions - 3rd party brokers		979		843		136			16
Postage		1,254		1,139		115			10
Stationery and supplies		812		769		43			6
Miscellaneous		9,001		7,714		1,287			17

Total other		12,046		10,465		1,581			15


Total Non-Interest Expense	$	99,723	$	92,563	$	7,160			8


	Nine Months Ended
	September 30				$			%
(Dollars in thousands)	2010		2009		Change			Change
Salaries and employee benefits:
Salaries	$	88,334	$	80,421		7,913			10
Commissions and bonus		40,064		33,751		6,313			19
Benefits		28,337		24,751		3,586			14

Total salaries and employee benefits		156,735		138,923		17,812			13
Equipment		12,144		12,022		122			1
Occupancy, net		18,517		17,682		835			5
Data processing		10,967		9,578		1,389			15
Advertising and marketing		4,434		4,003		431			11
Professional fees		11,619		9,843		1,776			18
Amortization of other intangible assets		2,020		2,040		(20	)		(1	)
FDIC insurance		13,456		16,468		(3,012	)		(18	)
OREO expenses, net		11,948		13,671		(1,723	)		(13	)
Other:
Commissions - 3rd party brokers		3,037		2,338		699			30
Postage		3,593		3,466		127			4
Stationery and supplies		2,305		2,330		(25	)		(1	)
Miscellaneous		25,549		21,406		4,143			19

Total other		34,484		29,540		4,944			17


Total Non-Interest Expense	$	276,324	$	253,770	$	22,554			9

Salaries and employee benefits comprised 57% of total non-interest expense in the third quarter of 2010 and 52% in the third quarter of 2009. Salaries and employee benefits expense increased $8.9 million, or 19%, in the third quarter of 2010 compared to the third quarter of 2009 primarily as a result of a $5.5 million increase in bonus and commissions as variable pay based revenue increased (mortgage banking and wealth management), a $2.3 million increase in salaries caused by the additional employees from the three FDIC-assisted transactions and larger staffing as the Company grows and a $1.1 million increase from employee benefits (primarily health plan related).

Professional fees include legal, audit and tax fees, external loan review costs and normal regulatory exam assessments. Professional fees for the third quarter of 2010 were $4.6 million, an increase of $466,000, or 11%, compared to the same period in 2009. These increases are primarily a result of increased legal costs related to non-performing assets and recent bank acquisitions.

FDIC insurance totaled $4.6 million in the third quarter of 2010, an increase of $308,000 compared to $4.3 million in the third quarter of 2009. The increase in FDIC insurance expense is primarily the result of the higher level of deposits at the Company’s banks.

OREO expenses include all costs related with obtaining, maintaining and selling of other real estate owned properties. This expense totaled $4.8 million in the third quarter of 2010, a decrease of $5.5 million compared to $10.2 million in the third quarter of 2009. The decrease in OREO expenses primarily related to lower valuation adjustments of properties held in OREO in the third quarter of 2010 as compared to third quarter of 2009.

Miscellaneous expense includes ATM expenses, correspondent bank charges, directors’ fees, telephone, travel and entertainment, corporate insurance, dues and subscriptions, problem loan expenses and lending origination costs that are not deferred. Miscellaneous expenses in the third quarter of 2010 increased $1.3 million, or 17%, compared to the same period in the prior year. The increase in the third quarter of 2010 compared to the same period in the prior year is primarily attributable to the general growth in the Company’s business.

ASSET QUALITY

Allowance for Credit Losses


	Three Months Ended						Nine Months Ended
	September 30,						September 30,
(Dollars in thousands)	2010			2009			2010			2009
Allowance for loan losses at beginning of period	$	106,547		$	85,113		$	98,277		$	69,767
Provision for credit losses		25,528			91,193			95,870			129,329
Other adjustments		—			—			1,943			—
Reclassification to allowance for unfunded lending-related commitments		(206	)		(1,543	)		478			(1,543	)

Charge-offs:
Commercial		3,076			16,685			12,532			26,128
Commercial real estate		15,727			57,928			48,281			66,220
Home equity		1,234			1,727			4,604			3,034
Residential real estate		116			422			832			682
Premium finance receivables — commercial		1,505			2,478			21,186			5,622	��
Premium finance receivables — life insurance		79			—			79			—
Indirect consumer		198			588			728			1,421
Consumer and other		288			244			576			495

Total charge-offs		22,223			80,072			88,818			103,602


Recoveries:
Commercial		286			104			873			214
Commercial real estate		197			35			856			240
Home equity		8			1			22			3
Residential real estate		3			—			10			—
Premium finance receivables — commercial		220			161			637			457
Premium finance receivables — life insurance		—			—			—			—
Indirect consumer		29			62			160			135
Consumer and other		43			42			124			96

Total recoveries		786			405			2,682			1,145

Net charge-offs, excluding covered loans		(21,437	)		(79,667	)		(86,136	)		(102,457	)
Covered loans		—			—			—			—

Net charge-offs		(21,437	)		(79,667	)		(86,136	)		(102,457	)


Allowance for loan losses at period end	$	110,432		$	95,096		$	110,432		$	95,096

Allowance for unfunded lending-related commitments at period end	$	2,375		$	3,129		$	2,375		$	3,129


Allowance for credit losses at period end	$	112,807		$	98,225		$	112,807		$	98,225


Annualized net charge-offs by category as a percentage of its own respective category’s average:
Commercial		0.60	%		4.01	%		0.88	%		2.23	%
Commercial real estate		1.84	%		6.69			1.90			2.59
Home equity		0.53			0.75			0.66			0.44
Residential real estate		0.07			0.33			0.20			0.19
Premium finance receivables — commercial		0.39			0.74			2.12			0.54
Premium finance receivables — life insurance		0.02			—			0.01			—
Indirect consumer		1.08			1.67			0.99			1.19
Consumer and other		1.01			0.71			0.57			0.38

Total loans, net of unearned income, excluding covered loans		0.89	%		3.65	%		1.23	%		1.66	%
Covered loans		—			—			—			—

Total loans, net of unearned income		0.86	%		3.65	%		1.20	%		1.66	%


Net charge-offs as a percentage of the provision for credit losses		83.97	%		87.36	%		89.85	%		79.22	%

*Excluding covered loans:*
Loans at period-end							$	9,461,155		$	8,275,257
Allowance for loan losses as a percentage of loans at period end								1.17	%		1.15	%
Allowance for credit losses as a percentage of loans at period end								1.19	%		1.19	%

*Including covered loans:*
Loans at period-end							$	9,814,995		$	8,275,257
Allowance for loan losses as a percentage of loans at period end								1.13	%		1.15	%
Allowance for credit losses as a percentage of loans at period end								1.15	%		1.19	%

The allowance for credit losses is comprised of the allowance for loan losses and the allowance for unfunded lending-related commitments. The allowance for loan losses is a reserve against loan amounts that are actually funded and outstanding while the allowance for unfunded lending-related commitments relates to certain amounts that Wintrust is committed to lend but for which funds have not yet been disbursed. The allowance for unfunded lending-related commitments (separate liability account) represents the portion of the 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-related reserves include the credit discounts on the purchased life insurance premium finance receivables which are netted with the loan balance. Additionally, on January 1, 2010, in conjunction with recording the securitization facility on its balance sheet, the Company established an allowance for loan losses totaling $1.9 million. This addition to the allowance for loan losses is shown as an other adjustment to the allowance for loan losses. As of September 30, 2010, there was no allowance for loan losses for covered loans.

The provision for credit losses totaled $25.5 million for the third quarter of 2010, $41.3 million in the second quarter of 2010 and $91.2 million for the third quarter of 2009. For the quarter ended September 30, 2010, net charge-offs, excluding covered loans, totaled $21.4 million compared to $37.9 million in the second quarter of 2010 and $79.7 million recorded in the third quarter of 2009. In the second quarter of 2010, a fraud perpetrated against a number of premium finance companies in the industry, including the property and casualty division of our premium financing subsidiary, increased both our net charge-offs and our provision for loan losses by $15.7 million. On a ratio basis, annualized net charge-offs as a percentage of average loans, excluding covered loans, were 0.89% in the third quarter of 2010, 1.63% in the second quarter of 2010, and 3.65% in the third quarter of 2009. Beginning in the third and fourth quarters of 2009, the Company committed to resolving problem credits as quickly as possible. Actions taken during this time increased OREO, net charge-offs and the provision for loan losses expenses required to maintain an appropriate level of reserves. The third quarter of 2010 amounts recorded for both net charge-offs and provision for credit losses reflect a continuation of the Company’s commitment to maintain a low level of non-performing assets.

Management believes the allowance for loan losses is appropriate to provide for inherent losses in the portfolio. There can be no assurances however, that future losses will not exceed the amounts provided for, thereby affecting future results of operations. The amount of future additions to the allowance for loan losses will be dependent upon management’s assessment of the appropriateness of the allowance based on its evaluation of economic conditions, changes in real estate values, interest rates, the regulatory environment, the level of past-due and non-performing loans, and other factors. The increase 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 table below shows the aging of the Company’s loan portfolio at September 30, 2010:

As of September 30, 2010

90+ days

60-89

30-59

and still

days past

(Dollars in thousands)

Nonaccrual

accruing

due

Current

Total Loans

Loan Balances:

Commercial

19,444

—

5,797

16,790

1,910,760

1,952,791

Commercial real-estate:

—

Residential construction

4,921

—

3,029

3,942

91,019

102,911

Commercial construction

11,230

—

1,665

947

165,825

179,667

Land

27,134

—

13,033

3,971

219,225

263,363

Office

5,745

—

4,186

1,467

526,470

537,868

Industrial

3,565

—

1,014

6,658

461,319

472,556

Retail

2,084

—

4,254

5,079

481,216

492,633

Multi-family

9,339

—

8,023

1,966

259,799

279,127

Mixed use and other

19,322

—

7,373

6,916

969,762

1,003,373

Total commercial real-estate

83,340

—

42,577

30,946

3,174,635

3,331,498

Total commercial and commercial real-estate

102,784

—

48,374

47,736

5,085,395

5,284,289

Home equity

6,144

—

2,215

6,596

904,869

919,824

Residential real estate

6,644

—

718

1,765

332,882

342,009

Premium finance receivables — commercial

9,082

6,853

6,723

13,409

1,287,867

1,323,934

Premium finance receivables — life insurance

222

1,222

6,244

13,567

1,413,739

1,434,994

Indirect consumer

446

355

210

1,420

54,144

56,575

Consumer and other

569

356

565

98,038

99,530

Total loans, net of unearned income, excluding covered loans

125,891

8,432

64,840

85,058

9,176,934

9,461,155

Covered loans⁽¹⁾

138,953

8,021

9,820

3,078

193,968

353,840

Total loans, net of unearned income

264,844

16,453

74,660

88,136

9,370,902

9,814,995

Aging as a % of Loan Balance:

Commercial

1.0

—

0.3

0.9

97.8

100.0

Commercial real-estate:

Residential construction

4.8

—

2.9

3.8

88.5

100.0

Commercial construction

6.3

—

0.9

0.5

92.3

100.0

Land

10.3

—

5.0

1.5

83.2

100.0

Office

1.1

—

0.8

0.3

97.8

100.0

Industrial

0.8

—

0.2

1.4

97.6

100.0

Retail

0.4

—

0.9

1.0

97.7

100.0

Multi-family

3.3

—

2.9

0.7

93.1

100.0

Mixed use and other

1.9

—

0.7

96.7

100.0

Total commercial real-estate

2.5

—

1.3

0.9

95.3

100.0

Total commercial and commercial real-estate

2.0

—

0.9

96.2

100.0

Home equity

0.7

—

0.2

0.7

98.4

100.0

Residential real estate

1.9

—

0.2

0.6

97.3

100.0

Premium finance receivables — commercial

0.7

0.5

1.0

97.3

100.0

Premium finance receivables — life insurance

0.0

0.1

0.4

1.0

98.5

100.0

Indirect consumer

0.8

0.6

0.4

2.5

95.7

100.0

Consumer and other

0.6

0.0

0.3

0.6

98.5

100.0

Total loans, net of unearned income, excluding covered loans

1.3

0.1

0.7

0.9

97.0

100.0

Covered loans⁽¹⁾

39.3

2.2

2.8

��

0.9

54.8

100.0

Total loans, net of unearned income

2.7

0.2

0.7

0.9

95.5

100.0


⁽¹⁾		Covered loans are subject to a loss sharing agreement with the FDIC whereby the Company is indemnified against the majority of any losses incurred related to these loans.

As of September 30, 2010, only $64.8 million of all loans, excluding covered loans, or 0.7%, were 60 to 89 days past due and $85.1 million, or 0.9%, were 30 to 59 days (or one payment) past due. As of June 30, 2010, only $50.3 million of all loans, excluding covered loans, or 0.5%, were 60 to 89 days past due and only $75.2 million, or 0.8%, were 30 to 59 days (or one payment) past due. The majority of the commercial and commercial real estate loans shown as 60 to 89 days and 30 to 59 days past due are included on the Company’s internal problem loan reporting system. Loans on this system are closely monitored by management on a monthly basis.

The Company’s home equity and residential loan portfolios continue to exhibit low delinquency ratios. Home equity loans at September 30, 2010 that are current with regard to the contractual terms of the loan agreement represent 98.4% of the total home equity portfolio. Residential real estate loans at September 30, 2010 that are current with regards to the contractual terms of the loan agreements comprise 97.3% of total residential real estate loans outstanding.

The table below shows the aging of the Company’s loan portfolio at June 30, 2010:

As of June 30, 2010


				90+ days			60-89			30-59
				and still			days past			days past
(Dollars in thousands)	Nonaccrual			accruing			due			due			Current			Total Loans
Loan Balances:
Commercial	$	17,741		$	99		$	8,550		$	5,781		$	1,795,447		$	1,827,618
Commercial real-estate:
Residential construction		15,468			—			6,166			3,035			104,793			129,462
Commercial construction		6,140			—			—			2,117			179,919			188,176
Land		21,699			—			5,313			8,721			233,823			269,556
Office		2,991			1,194			193			8,423			522,740			535,541
Industrial		5,540			—			5,612			3,530			458,033			472,715
Retail		5,174			—			1,906			4,712			472,745			484,537
Multi-family		11,074			—			421			1,498			263,888			276,881
Mixed use and other		14,898			1,054			11,156			10,476			953,371			990,955

Total commercial real-estate		82,984			2,248			30,767			42,512			3,189,312			3,347,823

Total commercial and commercial real-estate		100,725			2,347			39,317			48,293			4,984,759			5,175,441

Home equity		7,149			—			1,063			4,253			909,840			922,305
Residential real estate		4,436			—			1,379			2,489			324,369			332,673
Premium finance receivables — commercial		11,389			6,350			3,938			9,944			1,315,364			1,346,985
Premium finance receivables — life insurance		—			1,923			3,960			7,712			1,365,062			1,378,657
Indirect consumer		438			579			204			1,453			66,337			69,011
Consumer and other		62			3			438			1,021			97,567			99,091

Total loans, net of unearned income, excluding covered loans	$	124,199		$	11,202		$	50,299		$	75,165		$	9,063,298		$	9,324,163
Covered loans⁽¹⁾	$	104,606		$	2		$	9,881		$	9,039		$	152,035		$	275,563

Total loans, net of unearned income	$	228,805		$	11,204		$	60,180		$	84,204		$	9,215,333		$	9,599,726


Aging as a % of Loan Balance:
Commercial		1.0	%		—	%		0.5	%		0.3	%		98.2	%		100.0	%
Commercial real-estate:
Residential construction		11.9			—			4.8			2.3			81.0			100.0
Commercial construction		3.3			—			—			1.1			95.6			100.0
Land		8.0			—			2.0			3.2			86.8			100.0
Office		0.6			0.2			—			1.6			97.6			100.0
Industrial		1.2			—			1.2			0.7			96.9			100.0
Retail		1.1			—			0.4			1.0			97.5			100.0
Multi-family		4.0			—			0.2			0.5			95.3			100.0
Mixed use and other		1.5			0.1			1.1			1.1			96.2			100.0

Total commercial real-estate		2.5			0.1			0.9			1.3			95.2			100.0

Total commercial and commercial real-estate		1.9			—			0.8			0.9			96.4			100.0

Home equity		0.8			—			0.1			0.5			98.6			100.0
Residential real estate		1.3			—			0.4			0.7			97.6			100.0
Premium finance receivables — commercial		0.8			0.5			0.3			0.7			97.7			100.0
Premium finance receivables — life insurance		—			0.1			0.3			0.6			99.0			100.0
Indirect consumer		0.6			0.8			0.3			2.1			96.2			100.0
Consumer and other		0.1			—			0.4			1.0			98.5			100.0

Total loans, net of unearned income, excluding covered loans		1.3	%		0.1	%		0.5	%		0.8	%		97.3	%		100.0	%
Covered loans⁽¹⁾		38.0			—			3.6			3.3			55.1			100.0

Total loans, net of unearned income		2.4	%		0.1	%		0.6	%		0.9	%		96.0	%		100.0	%


⁽¹⁾		Covered loans are subject to a loss sharing agreement with the FDIC whereby the Company is indemnified against the majority of any losses incurred related to these loans.

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

Non-performing Loans, excluding covered loans

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


	September 30,			June 30,			December 31,			September 30,
(Dollars in thousands)	2010			2010			2009			2009
Loans past due greater than 90 days and still accruing:
Commercial	$	—		$	99		$	561		$	758
Commercial real-estate		—			2,248			—			22,619
Home equity		—			—			—			100
Residential real-estate		—			—			412			1,172
Premium finance receivables — commercial		6,853			6,350			6,271			11,714
Premium finance receivables — life insurance		1,222			1,923			—			—
Indirect consumer		355			579			461			549
Consumer and other		2			3			95			25

Total past due greater than 90 days and still accruing		8,432			11,202			7,800			36,937


Non-accrual loans:
Commercial		19,444			17,741			16,509			19,035
Commercial real-estate		83,340			82,984			80,639			147,691
Home equity		6,144			7,149			8,883			6,808
Residential real-estate		6,644			4,436			3,779			4,077
Premium finance receivables — commercial		9,082			11,389			11,878			16,093
Premium finance receivables — life insurance		222			—			704			—
Indirect consumer		446			438			995			736
Consumer and other		569			62			617			282

Total non-accrual		125,891			124,199			124,004			194,722


Total non-performing loans:
Commercial		19,444			17,840			17,070			19,793
Commercial real-estate		83,340			85,232			80,639			170,310
Home equity		6,144			7,149			8,883			6,908
Residential real-estate		6,644			4,436			4,191			5,249
Premium finance receivables — commercial		15,935			17,739			18,149			27,807
Premium finance receivables — life insurance		1,444			1,923			704			—
Indirect consumer		801			1,017			1,456			1,285
Consumer and other		571			65			712			307

Total non-performing	$	134,323		$	135,401		$	131,804		$	231,659


Total non-performing loans by category as a percent of its own respective category’s period-end balance:
Commercial		1.00	%		0.98	%		0.98	%		1.20	%
Commercial real-estate		2.50			2.55			2.45			5.02
Home equity		0.67			0.78			0.95			0.74
Residential real-estate		1.94			1.33			1.37			1.87
Premium finance receivables — commercial		1.20			1.32			2.49			3.70
Premium finance receivables — life insurance		0.10			0.14			0.06			—
Indirect consumer		1.42			1.47			1.48			1.11
Consumer and other		0.57			0.07			0.65			0.26

Total loans, net of unearned income		1.42	%		1.45	%		1.57	%		2.80	%


Allowance for loan losses as a percentage total non-performing loans		82.21	%		78.69	%		74.56	%		41.05	%

Non-performing Commercial and Commercial Real Estate

The commercial non-performing loan category totaled $19.4 million as of September 30, 2010 compared to $17.8 million as of June 30, 2010 and $19.8 million as of September 30, 2009. The commercial real estate non-performing loan category totaled $83.3 million as of September 30, 2010 compared to $85.2 million as of June 30, 2010 and $170.3 million as of September 30, 2009.

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

Non-performing Residential Real Estate and Home Equity

Non-performing home equity and residential real estate loans totaled $12.8 million as of September 30, 2010. The balance increased $631,000 from September 30, 2009 and $1.1 million from June 30, 2010. The September 30, 2010 non-performing balance is comprised of $6.7 million of residential real estate (23 individual credits) and $6.1 million of home equity loans (26 individual credits). On average, this is approximately three non-performing residential real estate loans and home equity loans per chartered bank within the Company. The Company believes control and collection of these loans is very manageable. At this time, management believes reserves are adequate to absorb inherent losses that may occur upon the ultimate resolution of these credits.

Non-performing Commercial Premium Finance Receivables

The table below presents the level of non-performing property and casualty premium finance receivables as of September 30, 2010 and 2009, and the amount of net charge-offs for the quarters then ended.


	September 30,			September 30,
(Dollars in thousands)	2010			2009
Non-performing premium finance receivables — commercial	$	15,935		$	27,807
- as a percent of premium finance receivables — commercial outstanding		1.20	%		3.70	%

Net charge-offs of premium finance receivables — commercial	$	1,285		$	2,317
- annualized as a percent of average premium finance receivables - commercial		0.39	%		0.74	%

Fluctuations in this category may occur due to timing and nature of account collections from insurance carriers. The Company’s underwriting standards, regardless of the condition of the economy, have remained consistent. We anticipate that net charge-offs and non-performing asset levels in the near term will continue to be at levels that are within acceptable operating ranges for this category of loans. Management is comfortable with administering the collections at this level of non-performing property and casualty premium finance receivables and believes reserves are adequate to absorb inherent losses that may occur upon the ultimate resolution of these credits. In the second quarter of 2010, a fraud perpetrated against a number of premium finance companies in the industry, including the property and casualty division of our premium financing subsidiary, increased both our net charge-offs and our provision for loan losses by $15.7 million. Excluding the effect of this fraud, net charge-offs of premium finance receivables would have been $1.8 million for the second quarter of 2010, or 0.56% of average premium finance receivables on an annualized basis.

Nonperforming Loans Rollforward

The table below presents a summary of non-performing loans, excluding covered loans, as of September 30, 2010 and shows the changes in the balance from June 30, 2010:


	Non-performing
(Dollars in thousands)	Loans
Balance at June 30, 2010	$	135,401
Additions, net		40,539
Payments received		(17,179	)
Transfer to OREO		(10,011	)
Charge-offs		(12,212	)
Net change for niche loans⁽¹⁾		(2,215	)

Balance at September 30, 2010	$	134,323


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

Restructured Loans

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


	September 30,		June 30,		September 30,
(Dollars in thousands)	2010		2010		2009
Accruing:
Commercial	$	7,690	$	5,110	$	—
Commercial real estate		65,149		46,052		—
Residential real estate		1,121		2,591		—

Total accrual	$	73,960	$	53,753	$	—


Non-accrual:⁽¹⁾
Commercial	$	3,959	$	3,865	$	—
Commercial real estate		13,812		6,827		—
Residential real estate		1,935		238		—

Total non-accrual	$	19,706	$	10,930	$	—


Total restructured loans:
Commercial	$	11,649	$	8,975	$	—
Commercial real estate		78,961		52,879		—
Residential real estate		3,056		2,829		—

Total restructured loans	$	93,666	$	64,683	$	—


⁽¹⁾		Included in total non-performing loans.

At September 30, 2010, the Company had $93.7 million in loans with modified terms. The $93.7 million in modified loans represents 115 credit relationships in which economic concessions were granted to financially distressed borrowers to better align the terms of their loans with their current ability to pay. These actions were taken on a case-by-case basis working with financially distressed borrowers to find a concession that would assist them in retaining their businesses or their homes and attempt to keep these loans in an accruing status for the Company.

Subsequent to its restructuring, any restructured loan with a below market rate concession that becomes nonaccrual will remain classified by the Company as a restructured loan for its duration and will be included in the Company’s non-performing loans. Each restructured loan was reviewed for collateral impairment at September 30, 2010 and approximately $8.7 million of collateral impairment was present and appropriately reserved for through the Company’s normal reserving methodology in the Company’s allowance for loan losses. Additionally, none of these loans at September 30, 2010 had impairment based on the present value of expected cash flows, thus there was no impact on interest income.

Other Real Estate Owned

The table below presents a summary of other real estate owned, excluding covered other real estate owned, as of September 30, 2010 and shows the activity for the respective period and the balance for each property type:


	Three Months Ended
	September 30,			June 30,			September 30,
(Dollars in thousands)	2010			2010			2009
Balance at beginning of period	$	86,420		$	89,009		$	41,438
Disposals/resolved		(15,463	)		(15,201	)		(10,408	)
Transfers in at fair value, less costs to sell		8,303			16,348			17,136
Fair value adjustments		(2,606	)		(3,736	)		(7,527	)

Balance at end of period	$	76,654		$	86,420		$	40,639


	Period End
	September 30,		June 30,		September 30,
Balance by Property Type	2010		2010		2009
Residential real estate	$	8,778	$	5,457	$	8,013
Residential real estate development		22,600		27,161		23,834
Commercial real estate		45,276		53,802		8,792

Total	$	76,654	$	86,420	$	40,639

WINTRUST SUBSIDIARIES AND LOCATIONS

Wintrust is a financial holding company whose common stock is traded on the Nasdaq Global Select Market (Nasdaq: WTFC). Its 15 community bank subsidiaries are: Lake Forest Bank & Trust Company, Hinsdale Bank & Trust Company, North Shore Community Bank & Trust Company in Wilmette, Libertyville Bank & Trust Company, Barrington Bank & Trust Company, Crystal Lake Bank & Trust Company, Northbrook Bank & Trust Company, Advantage National Bank in Elk Grove Village, Village Bank & Trust in Arlington Heights, Beverly Bank & Trust Company in Chicago, Wheaton Bank & Trust Company, State Bank of The Lakes in Antioch, Old Plank Trail Community Bank, N.A. in New Lenox, St. Charles Bank & Trust Company and Town Bank in Hartland, Wisconsin. The banks also operate facilities in Illinois in Algonquin, Bloomingdale, Buffalo Grove, Cary, Chicago, Clarendon Hills, Deerfield, Downers Grove, Frankfort, Geneva, Glencoe, Glen Ellyn, Gurnee, Grayslake, Highland Park, Highwood, Hoffman Estates, Island Lake, Lake Bluff, Lake Villa, Lincoln Park, Lindenhurst, McHenry, Mokena, Mount Prospect, Mundelein, Naperville, North Chicago, Northfield, Palatine, Prospect Heights, Ravenswood, Ravinia, Riverside, Roselle, Sauganash, Skokie, Spring Grove, Vernon Hills, Wauconda, Western Springs, Willowbrook and Winnetka, and in Delafield, Elm Grove, Madison, Wales, Wisconsin.

Additionally, the Company operates various non-bank subsidiaries. First Insurance Funding Corporation, one of the largest insurance premium finance companies operating in the United States, serves commercial and life insurance loan customers throughout the country. Tricom, Inc. of Milwaukee provides high-yielding, short-term accounts receivable financing and value-added out-sourced administrative services, such as data processing of payrolls, billing and cash management services, to temporary staffing service clients located throughout the United States. Wintrust Mortgage Corporation engages primarily in the origination and purchase of residential mortgages for sale into the thirdary market through origination offices located throughout the United States. Loans are also originated nationwide through relationships with wholesale and correspondent offices. Wayne Hummer Investments, LLC is a broker-dealer providing a full range of private client and brokerage services to clients and correspondent banks located primarily in the Midwest. Wintrust Capital Management provides money management services and advisory services to individual accounts. Advanced Investment Partners, LLC is an investment management firm specializing in the active management of domestic equity investment strategies. The Chicago Trust Company, a trust subsidiary, allows Wintrust to service customers’ trust and investment needs at each banking location. Wintrust Information Technology Services Company provides information technology support, item capture and statement preparation services to the Wintrust subsidiaries.

FORWARD-LOOKING STATEMENTS

This document contains forward-looking statements within the meaning of federal securities laws. Forward-looking information can be identified through the use of words such as “intend,” “plan,” “project,” “expect,” “anticipate,” “believe,” “estimate,” “contemplate,” “possible,” “point,” “will,” “may,” “should,” “would” and “could.” Forward-looking statements and information are not historical facts, are premised on many factors and assumptions, and represent only management’s expectations, estimates and projections regarding future events. Similarly, these statements are not guarantees of future performance and involve certain risks and uncertainties that are difficult to predict, which may include, but are not limited to, those listed below and the Risk Factors discussed under Item 1A of the Company’s 2009 Annual Report on Form 10-K and in any of the Company’s subsequent SEC filings. The Company intends such forward-looking statements to be covered by the safe harbor provisions for forward-looking statements contained in the Private Securities Litigation Reform Act of 1995, and is including this statement for purposes of invoking these safe harbor provisions. Such forward-looking statements may be deemed to include, among other things, statements relating to the Company’s future financial performance, the performance of its loan portfolio, the expected amount of future credit reserves and charge-offs, delinquency trends, growth plans, regulatory developments, securities that the Company may offer from time to time, and management’s long-term performance goals, as well as statements relating to the anticipated effects on financial condition and results of operations from expected developments or events, the Company’s business and growth strategies, including future acquisitions of banks, specialty finance or wealth management businesses, internal growth and plans to form additional de novo banks or branch offices. Actual results could differ materially from those addressed in the forward-looking statements as a result of numerous factors, including the following:

•

negative economic conditions that adversely affect the economy, housing prices, the job market and other factors that may affect the Company’s liquidity and the performance of its loan portfolios, particularly in the markets in which it operates;

•

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

•

estimates of fair value of certain of the Company’s assets and liabilities, which could change in value significantly from period to period;

•

changes in the level and volatility of interest rates, the capital markets and other market indices that may affect, among other things, the Company’s liquidity and the value of its assets and liabilities;

•

a decrease in the Company’s regulatory capital ratios, including as a result of further declines in the value of its loan portfolios, or otherwise;

•

effects resulting from the Company’s participation in the Capital Purchase Program, including restrictions on dividends and executive compensation practices, as well as any future restrictions that may become applicable to the Company;

•

legislative or regulatory changes, particularly changes in regulation of financial services companies and/or the products and services offered by financial services companies;

•

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

•

competitive pressures in the financial services business which may affect the pricing of the Company’s loan and deposit products as well as its services (including wealth management services);

•

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

•

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

•

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

•

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

•

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

•

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

•

failure to identify and complete favorable acquisitions in the future, or unexpected difficulties or developments related to the integration of recent acquisitions, including with respect to any FDIC-assisted acquisitions;

•

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

•

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

•

significant litigation involving the Company; and

•

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

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

CONFERENCE CALL, WEB CAST AND REPLAY

The Company will hold a conference call at 1:00 p.m. (CT) Wednesday, October 27, 2010 regarding third quarter 2010 results. Individuals interested in listening should call (800) 514-8478 and enter Conference ID #16430168. 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 2010 earnings press release will be available on the home page of the Company’s website at (http://www.wintrust.com) and at the Investor News and Events, Press Releases link on its website.

# # #

WINTRUST FINANCIAL CORPORATION

Supplemental Financial Information

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)	2010			2010			2010			2009			2009
Selected Financial Condition Data (at end of period):
Total assets	$	14,100,368		$	13,708,560		$	12,839,978		$	12,215,620		$	12,136,021
Total loans, excluding covered loans		9,461,155			9,324,163			9,070,562			8,411,771			8,275,257
Total deposits		10,962,239			10,624,742			9,724,870			9,917,074			9,847,163
Junior subordinated debentures		249,493			249,493			249,493			249,493			249,493
Total shareholders’ equity		1,398,912			1,384,736			1,364,832			1,138,639			1,106,082

Selected Statements of Income Data:
Net interest income		102,980			104,314			95,865			86,934			87,663
Net revenue⁽¹⁾		157,636			154,750			138,472			172,022			238,343
Core pre-tax earnings⁽²⁾		47,572			47,649			42,064			39,905			37,137
Net income		20,098			13,009			16,017			28,167			31,995
Net income per common share — Basic	$	0.49		$	0.26		$	0.43		$	0.96		$	1.14
Net income per common share — Diluted	$	0.47		$	0.25		$	0.41		$	0.90		$	1.07

Selected Financial Ratios and Other Data:
Performance Ratios:
Net interest margin⁽²⁾		3.22	%		3.43	%		3.38	%		3.10	%		3.25	%
Non-interest income to average assets		1.56	%		1.51	%		1.37	%		2.77	%		5.07	%
Non-interest expense to average assets		2.85	%		2.78	%		2.70	%		2.94	%		3.11	%
Net overhead ratio⁽³⁾		1.28	%		1.26	%		1.33	%		0.17	%		(1.95)	%
Efficiency ratio^{(2) (4)}		67.01	%		59.72	%		60.59	%		52.54	%		38.69	%
Return on average assets		0.57	%		0.39	%		0.52	%		0.92	%		1.08	%
Return on average common equity		5.44	%		2.98	%		4.93	%		10.97	%		13.79	%
Average total assets	$	14,015,757		$	13,390,537		$	12,590,817		$	12,189,096		$	11,797,520
Average total shareholders’ equity		1,391,507			1,371,689			1,196,191			1,126,594			1,070,095
Average loans to average deposits ratio		88.7	%		91.0	%		94.6	%		86.9	%		90.5	%
Average loans to average deposits ratio (including covered loans)		91.7			93.0			94.6			86.9			90.5

*Common Share Data at end of period:*
Market price per common share	$	32.41		$	33.34		$	37.21		$	30.79		$	27.96
Book value per common share	$	35.70		$	35.33		$	34.76		$	35.27		$	34.10
Common shares outstanding		31,143,740			31,084,298			31,044,449			24,206,819			24,103,068
Other Data at end of period:⁽⁹⁾
Leverage Ratio⁽⁵⁾		10.0	%		10.2	%		10.8	%		9.3	%		9.3	%
Tier 1 Capital to risk-weighted assets⁽⁵⁾		12.7	%		13.0	%		13.4	%		11.0	%		10.8	%
Total capital to risk-weighted assets⁽⁵⁾		14.1	%		14.3	%		14.9	%		12.4	%		12.3	%
Tangible Common Equity ratio (TCE)⁽⁸⁾		5.9	%		6.0	%		6.3	%		4.7	%		4.5	%
Allowance for credit losses⁽⁶⁾	$	112,807		$	108,716		$	106,050		$	101,831		$	98,225
Credit discounts on purchased premium finance receivables — life insurance⁽⁷⁾		26,399			28,216			33,990			37,323			36,195
Non-performing loans		134,323			135,401			140,960			131,804			231,659
Allowance for credit losses to total loans⁽⁶⁾		1.19	%		1.17	%		1.17	%		1.21	%		1.19	%
Non-performing loans to total loans		1.42	%		1.45	%		1.55	%		1.57	%		2.80	%
Number of:
Bank subsidiaries		15			15			15			15			15
Non-bank subsidiaries		8			8			8			8			8
Banking offices		85			85			78			78			78


⁽¹⁾		Net revenue includes net interest income and non-interest income

⁽²⁾		See “Supplemental Financial Measures/Ratios” for additional information on this performance measure/ratio.

⁽³⁾		The net overhead ratio is calculated by netting total non-interest expense and total non-interest income, annualizing this amount, and dividing by that period’s total average assets. A lower ratio indicates a higher degree of efficiency.

⁽⁴⁾		The efficiency ratio is calculated by dividing total non-interest expense by tax-equivalent net revenue (less securities gains or losses). A lower ratio indicates more efficient revenue generation.

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

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

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

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

⁽⁹⁾		Asset quality ratios exclude covered loans.

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


	(Unaudited)			(Unaudited)			(Unaudited)						(Unaudited)
	September 30,			June 30,			March 31,			December 31,			September 30,
(In thousands)	2010			2010			2010			2009			2009

Assets
Cash and due from banks	$	155,067		$	123,712		$	106,501		$	135,133		$	128,898
Federal funds sold and securities purchased under resale agreements		88,913			28,664			15,393			23,483			22,863
Interest-bearing deposits with other banks		1,224,584			1,110,123			1,222,323			1,025,663			1,168,362
Available-for-sale securities, at fair value		1,324,179			1,418,035			1,205,919			1,255,066			1,362,359
Trading account securities		4,935			38,261			39,938			33,774			29,204
Brokerage customer receivables		25,442			24,291			20,978			20,871			19,441
Federal Home Loan Bank and Federal Reserve Bank stock, at cost		80,445			79,300			74,001			73,749			71,889
Loans held-for-sale		320,440			237,981			156,049			275,715			193,255
Loans, net of unearned income, excluding covered loans		9,461,155			9,324,163			9,070,562			8,411,771			8,275,257
Covered loans		353,840			275,563			—			—			—

Total loans		9,814,995			9,599,726			9,070,562			8,411,771			8,275,257
Less: Allowance for loan losses		110,432			106,547			102,397			98,277			95,096

Net loans		9,704,563			9,493,179			8,968,165			8,313,494			8,180,161
Premises and equipment, net		353,445			346,806			348,182			350,345			352,890
FDIC indemnification asset		161,640			114,102			—			—			—
Accrued interest receivable and other assets		365,496			374,172			363,676			416,678			315,806
Trade date securities receivable		—			28,634			27,850			—			—
Goodwill		278,025			278,025			278,025			278,025			276,525
Other intangible assets		13,194			13,275			12,978			13,624			14,368

Total assets	$	14,100,368		$	13,708,560		$	12,839,978		$	12,215,620		$	12,136,021


Liabilities and Shareholders’ Equity
Deposits:
Non-interest bearing	$	1,042,730		$	953,814		$	871,830		$	864,306		$	841,668
Interest bearing		9,919,509			9,670,928			8,853,040			9,052,768			9,005,495

Total deposits		10,962,239			10,624,742			9,724,870			9,917,074			9,847,163
Notes payable		1,000			1,000			1,000			1,000			1,000
Federal Home Loan Bank advances		414,832			415,571			421,775			430,987			433,983
Other borrowings		241,522			218,424			218,079			247,437			252,071
Secured borrowings — owed to securitization investors		600,000			600,000			600,000			—			—
Subordinated notes		55,000			55,000			60,000			60,000			65,000
Junior subordinated debentures		249,493			249,493			249,493			249,493			249,493
Trade date securities payable		2,045			200			62,017			—			—
Accrued interest payable and other liabilities		175,325			159,394			137,912			170,990			181,229

Total liabilities		12,701,456			12,323,824			11,475,146			11,076,981			11,029,939


Shareholders’ Equity:
Preferred stock		287,234			286,460			285,642			284,824			284,061
Common stock		31,145			31,084			31,044			27,079			26,965
Surplus		682,318			680,261			677,090			589,939			580,988
Treasury stock		(51	)		(4	)		—			(122,733	)		(122,437	)
Retained earnings		394,323			381,969			373,903			366,152			342,873
Accumulated other comprehensive income (loss)		3,943			4,966			(2,847	)		(6,622	)		(6,368	)

Total shareholders’ equity		1,398,912			1,384,736			1,364,832			1,138,639			1,106,082

Total liabilities and shareholders’ equity	$14,100,368			$	13,708,560		$	12,839,978		$	12,215,620		$	12,136,021

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)	2010		2010			2010		2009		2009
Interest income
Interest and fees on loans	$	137,902	$	135,800		$	129,542	$	122,140	$	126,448
Interest bearing deposits with banks		1,339		1,215			1,274		1,369		778
Federal funds sold and securities purchased under resale agreements		35		34			49		38		106
Securities		7,438		11,218			11,012		12,672		13,677
Trading account securities		19		343			21		20		7
Brokerage customer receivables		180		166			139		143		132
Federal Home Loan Bank and Federal Reserve Bank stock		488		472			459		447		429

Total interest income		147,401		149,248			142,496		136,829		141,577

Interest expense
Interest on deposits		31,088		31,626			33,212		38,998		42,806
Interest on Federal Home Loan Bank advances		4,042		4,094			4,346		4,510		4,536
Interest on notes payable and other borrowings		1,411		1,439			1,462		1,663		1,779
Interest on secured borrowings — owed to securitization investors		3,167		3,115			2,995		—		—
Interest on subordinated notes		265		256			241		286		333
Interest on junior subordinated debentures		4,448		4,404			4,375		4,438		4,460

Total interest expense		44,421		44,934			46,631		49,895		53,914

Net interest income		102,980		104,314			95,865		86,934		87,663
Provision for credit losses		25,528		41,297			29,044		38,603		91,193

Net interest income after provision for credit losses		77,452		63,017			66,821		48,331		(3,530	)

Non-interest income
Wealth management		8,973		9,193			8,667		8,047		7,501
Mortgage banking		20,980		7,985			9,727		16,495		13,204
Service charges on deposit accounts		3,384		3,371			3,332		3,437		3,447
Gain on sales of commercial premium finance receivables		—		—			—		4,429		3,629
Gains (losses) on available-for-sale securities, net		9,235		46			392		642		(412	)
Gain on bargain purchases		6,593		26,494			10,894		42,951		113,062
Trading gains (losses)		712		(1,538	)		5,973		4,437		6,236
Other		4,779		4,885			3,622		4,650		4,013

Total non-interest income		54,656		50,436			42,607		85,088		150,680

Non-interest expense
Salaries and employee benefits		57,014		50,649			49,072		47,955		48,088
Equipment		4,203		4,046			3,896		4,097		4,069
Occupancy, net		6,254		6,033			6,230		6,124		5,884
Data processing		3,891		3,669			3,407		3,404		3,226
Advertising and marketing		1,650		1,470			1,314		1,366		1,488
Professional fees		4,555		3,957			3,107		3,556		4,089
Amortization of other intangible assets		701		674			645		744		677
FDIC insurance		4,642		5,005			3,809		4,731		4,334
OREO expenses, net		4,767		5,843			1,337		5,293		10,243
Other		12,046		11,317			11,121		13,047		10,465

Total non-interest expense		99,723		92,663			83,938		90,317		92,563

Income before taxes		32,385		20,790			25,490		43,102		54,587
Income tax expense		12,287		7,781			9,473		14,935		22,592

Net income	$	20,098	$	13,009		$	16,017	$	28,167	$	31,995

Preferred stock dividends and discount accretion	$	4,943	$	4,943		$	4,943	$	4,888	$	4,668

Net income applicable to common shares	$	15,155	$	8,066		$	11,074	$	23,279	$	27,327

Net income per common share — Basic	$	0.49	$	0.26		$	0.43	$	0.96	$	1.14

Net income per common share — Diluted	$	0.47	$	0.25		$	0.41	$	0.90	$	1.07

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

Weighted average common shares outstanding		31,117		31,074			25,942		24,166		24,052
Dilutive potential common shares		988		1,267			1,139		2,845		2,493

Average common shares and dilutive common shares		32,105		32,341			27,081		27,011		26,545

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)	2010			2010			2010			2009			2009
Balance:
Commercial	$	1,952,791		$	1,827,618		$	1,749,895		$	1,743,208		$	1,643,721
Commercial real estate		3,331,498			3,347,823			3,333,157			3,296,698			3,392,138
Home equity		919,824			922,305			924,993			930,482			928,548
Residential real-estate		342,009			332,673			322,984			306,296			281,151
Premium finance receivables — commercial		1,323,934			1,346,985			1,317,822			730,144			752,032
Premium finance receivables — life insurance		1,434,994			1,378,657			1,233,573			1,197,893			1,045,653
Indirect consumer⁽¹⁾		56,575			69,011			83,136			98,134			115,528
Consumer and other		99,530			99,091			105,002			108,916			116,486

Total loans, net of unearned income, excluding covered loans	$	9,461,155		$	9,324,163		$	9,070,562		$	8,411,771		$	8,275,257
Covered loans	$	353,840		$	275,563		$	—		$	—		$	—

Total loans, net of unearned income	$	9,814,995		$	9,599,726		$	9,070,562		$	8,411,771		$	8,275,257


Mix:
Commercial		20	%		19	%		19	%		21	%		20	%
Commercial real estate		34			35			37			39			41
Home equity		9			10			10			11			11
Residential real-estate		3			3			4			4			4
Premium finance receivables — commercial		13			14			14			9			9
Premium finance receivables — life insurance		15			14			14			14			13
Indirect consumer⁽¹⁾		1			1			1			1			1
Consumer and other		1			1			1			1			1

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

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


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

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


	September 30,			June 30,			March 31,			December 31,			September 30,
(Dollars in thousands)	2010			2010			2010			2009			2009
Balance:
Non-interest bearing	$	1,042,730		$	953,814		$	871,830		$	864,306		$	841,668
NOW		1,551,749			1,560,733			1,448,857			1,415,856			1,245,689
Wealth Management deposits⁽¹⁾		710,435			694,830			690,919			971,113			935,740
Money Market		1,746,168			1,722,729			1,586,830			1,534,632			1,468,228
Savings		713,823			594,753			558,770			561,916			513,239
Time certificates of deposit		5,197,334			5,097,883			4,567,664			4,569,251			4,842,599

Total deposits	$	10,962,239		$	10,624,742		$	9,724,870		$	9,917,074		$	9,847,163


Mix:
Non-interest bearing		10	%		9	%		9	%		9	%		9	%
NOW		14			15			15			14			13
Wealth Management deposits⁽¹⁾		6			6			7			10			9
Money Market		16			16			16			15			15
Savings		7			6			6			6			5
Time certificates of deposit		47			48			47			46			49

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


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

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


	Three Months Ended
	September 30,			June 30,			March 31,			December 31,			September 30,
(Dollars in thousands)	2010			2010			2010			2009			2009
Net interest income	$	103,396		$	104,775		$	96,311		$	87,448		$	88,178
Call option income		703			169			289			—			—

Net interest income including call option income	$	104,099		$	104,944		$	96,600		$	87,448		$	88,178


Yield on earning assets		4.59	%		4.91	%		5.01	%		4.87	%		5.24	%
Rate on interest-bearing liabilities		1.55			1.65			1.82			1.98			2.18

Rate spread		3.04	%		3.26	%		3.19	%		2.89	%		3.06	%
Net free funds contribution		0.18			0.17			0.19			0.21			0.19

Net interest margin		3.22			3.43			3.38			3.10			3.25
Call option income		0.02			0.01			0.01			—			—

Net interest margin including call option income		3.24	%		3.44	%		3.39	%		3.10	%		3.25	%

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


	Nine Months
	Ended			Years Ended
	September 30,			December 31,
(Dollars in thousands)	2010			2009			2008			2007			2006
Net interest income	$	304,481		$	314,096		$	247,054		$	264,777		$	250,507
Call option income		1,162			1,998			29,024			2,628			3,157

Net interest income including call option income	$	305,643		$	316,094		$	276,078		$	267,405		$	253,664


Yield on earning assets		4.83	%		5.07	%		5.88	%		7.21	%		6.91	%
Rate on interest-bearing liabilities		1.66			2.29			3.31			4.39			4.11

Rate spread		3.17	%		2.78	%		2.57	%		2.82	%		2.80	%
Net free funds contribution		0.17			0.23			0.24			0.29			0.30

Net interest margin		3.34			3.01			2.81			3.11			3.10
Call option income		0.01			0.02			0.33			0.03			0.04

Net interest margin including call option income		3.35	%		3.03	%		3.14	%		3.14	%		3.14	%

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,
(In thousands)	2010			2010			2010			2009			2009
Liquidity management assets	$	2,802,964		$	2,613,179		$	2,384,122		$	2,569,584		$	2,078,330
Other earning assets		34,263			62,874			26,269			26,167			24,874
Loans, net of unearned income		9,603,561			9,356,033			9,150,078			8,604,006			8,665,281
Covered loans		325,751			210,030			—			—			—

Total earning assets	$	12,766,539		$	12,242,116		$	11,560,469		$	11,199,757		$	10,768,485

Allowance for loan losses		(113,631	)		(108,764	)		(107,257	)		(97,269	)		(85,300	)
Cash and due from banks		154,078			137,531			113,514			124,219			109,645
Other assets		1,208,771			1,119,654			1,024,091			962,389			1,004,690

Total assets	$	14,015,757		$	13,390,537		$	12,590,817		$	12,189,096		$	11,797,520


Interest-bearing deposits	$	9,823,525		$	9,348,541		$	8,818,012		$	9,016,863		$	8,799,578
Federal Home Loan Bank advances		414,789			417,835			429,195			432,028			434,134
Notes payable and other borrowings		232,991			217,751			225,919			234,754			245,352
Secured borrowings — owed to securitization investors		600,000			600,000			600,000			—			—
Subordinated notes		55,000			57,198			60,000			63,261			65,000
Junior subordinated notes		249,493			249,493			249,493			249,493			249,493

Total interest-bearing liabilities	$	11,375,798		$	10,890,818		$	10,382,619		$	9,996,399		$	9,793,557

Non-interest bearing liabilities		1,005,170			932,046			858,875			886,988			775,202
Other liabilities		243,282			195,984			153,132			179,115			158,666
Equity		1,391,507			1,371,689			1,196,191			1,126,594			1,070,095

Total liabilities and shareholders’ equity	$	14,015,757		$	13,390,537		$	12,590,817		$	12,189,096		$	11,797,520

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,
	2010			2010			2010			2009			2009
Yield earned on:
Liquidity management assets		1.36	%		2.04	%		2.24	%		2.31	%		2.94	%
Other earning assets		2.37			3.28			2.53			2.59			2.36
Loans, net of unearned income		5.54			5.71			5.75			5.64			5.79
Covered loans		4.84			5.12			—			—			—

		4.59	%		4.91	%		5.01	%		4.87	%		5.24	%


Rate paid on:
Interest-bearing deposits		1.26	%		1.36	%		1.53	%		1.72	%		1.93	%
Federal Home Loan Bank advances		3.87			3.93			4.11			4.14			4.14
Notes payable and other borrowings		2.40			2.65			2.63			2.81			2.88
Secured borrowings — owed to securitization investors		2.09			2.08			2.02			—			—
Subordinated notes		1.89			1.77			1.60			1.77			2.01
Junior subordinated notes		6.98			6.98			7.01			6.96			6.99

		1.55	%		1.65	%		1.82	%		1.98	%		2.18	%


Interest rate spread		3.04	%		3.26	%		3.19	%		2.89	%		3.06	%
Net free funds/contribution		0.18	%		0.17	%		0.19	%		0.21	%		0.19	%

Net interest income/Net interest margin		3.22	%		3.43	%		3.38	%		3.10	%		3.25	%

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,
(In thousands)	2010		2010			2010		2009		2009
Brokerage	$	5,806	$	5,712		$	5,554	$	5,034	$	4,593
Trust and asset management		3,167		3,481			3,113		3,013		2,908

Total wealth management		8,973		9,193			8,667		8,047		7,501

Mortgage banking		20,980		7,985			9,727		16,495		13,204
Service charges on deposit accounts		3,384		3,371			3,332		3,437		3,447
Gains on sales of premium finance receivables		—		—			—		4,429		3,629
Gains (losses) on available-for-sale securities		9,235		46			392		642		(412	)
Gain on bargain purchases		6,593		26,494			10,894		42,951		113,062
Trading gains (losses)		712		(1,538	)		5,973		4,437		6,236
Other:
Fees from covered call options		703		169			289		—		—
Bank Owned Life Insurance		552		418			623		642		552
Administrative services		744		708			582		511		527
Miscellaneous		2,780		3,590			2,128		3,497		2,934

Total other income		4,779		4,885			3,622		4,650		4,013


Total Non-Interest Income	$	54,656	$	50,436		$	42,607	$	85,088	$	150,680

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,
(In thousands)	2010		2010		2010		2009		2009
Salaries and employee benefits:
Salaries	$	30,537	$	28,714	$	29,083	$	28,426	$	28,189
Commissions and bonus		17,366		12,967		9,731		11,752		11,887
Benefits		9,111		8,968		10,258		7,777		8,012

Total salaries and employee benefits		57,014		50,649		49,072		47,955		48,088
Equipment		4,203		4,046		3,896		4,097		4,069
Occupancy, net		6,254		6,033		6,230		6,124		5,884
Data processing		3,891		3,669		3,407		3,404		3,226
Advertising and marketing		1,650		1,470		1,314		1,366		1,488
Professional fees		4,555		3,957		3,107		3,556		4,089
Amortization of other intangibles		701		674		645		744		677
FDIC insurance		4,642		5,005		3,809		4,731		4,334
OREO expenses, net		4,767		5,843		1,337		5,293		10,243
Other:
Commissions - 3rd party brokers		979		1,097		962		757		843
Postage		1,254		1,229		1,110		1,367		1,139
Stationery and supplies		812		761		732		859		769
Miscellaneous		9,001		8,230		8,317		10,064		7,714

Total other expense		12,046		11,317		11,121		13,047		10,465


Total Non-Interest Expense	$	99,723	$	92,663	$	83,938	$	90,317	$	92,563

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)	2010			2010			2010			2009			2009
Allowance for loan losses at beginning of period	$	106,547		$	102,397		$	98,277		$	95,096		$	85,113
Provision for credit losses		25,528			41,297			29,044			38,603			91,193
Other adjustments		—			—			1,943			—			—
Reclassification (to)/from allowance for unfunded lending-related commitments		(206	)		785			(99	)		(494	)		(1,543	)

Charge-offs:

Commercial		3,076			4,781			4,675			8,894			16,685
Commercial real estate		15,727			12,311			20,244			22,894			57,928
Home equity		1,234			3,089			281			1,572			1,727
Residential real estate		116			310			406			385			422
Premium finance receivables — commercial		1,505			17,747			1,933			2,532			2,478
Premium finance receivables — life insurance		79			—			—			—			—
Indirect consumer		198			256			274			427			588
Consumer and other		288			109			179			148			244

Total charge-offs		22,223			38,603			27,992			36,852			80,072

Recoveries:

Commercial		286			143			443			237			104
Commercial real estate		197			218			442			552			35
Home equity		8			6			8			812			1
Residential real estate		3			2			5			—			—
Premium finance receivables — commercial		220			188			229			194			161
Premium finance receivables — life insurance		—			—			—			—			—
Indirect consumer		29			81			50			44			62
Consumer and other		43			33			47			85			42

Total recoveries		786			671			1,224			1,924			405

Net charge-offs, excluding covered loans		(21,437	)		(37,932	)		(26,768	)		(34,928	)		(79,667	)
Covered loans		—			—			—			—			—

Net charge-offs		(21,437	)		(37,932	)		(26,768	)		(34,928	)		(79,667	)


Allowance for loan losses at period end	$	110,432		$	106,547		$	102,397		$	98,277		$	95,096

Allowance for unfunded lending-related commitments at period end	$	2,375		$	2,169		$	3,653		$	3,554		$	3,129

Allowance for credit losses at period end	$	112,807		$	108,716		$	106,050		$	101,831		$	98,225


Annualized net charge-offs by category as a percentage of its own respective category’s average:
Commercial		0.60	%		1.04	%		1.02	%		2.04	%		4.01	%
Commercial real estate		1.84			1.45			2.42			2.62			6.69
Home equity		0.53			1.34			0.12			0.32			0.75
Residential real estate		0.07			0.23			0.32			0.28			0.33
Premium finance receivables — commercial		0.39			5.46			0.54			1.38			0.74
Premium finance receivables — life insurance		0.02			—			—			—			—
Indirect consumer		1.08			0.92			1.00			1.43			1.67
Consumer and other		1.01			0.27			0.48			0.22			0.71

Total loans, net of unearned income, excluding covered loans		0.89	%		1.63	%		1.19	%		1.61	%		3.65	%

Covered loans		—			—			—			—			—

Total loans, net of unearned income		0.86	%		1.59	%		1.19	%		1.61	%		3.65	%

Net charge-offs as a percentage of the provision for credit losses		83.97	%		91.85	%		92.48	%		90.48	%		87.36	%

*Excluding covered loans:*
Loans at period-end	$	9,461,155		$	9,324,163		$	9,070,562		$	8,411,771		$	8,275,257
Allowance for loan losses as a percentage of loans at period end		1.17	%		1.14	%		1.13	%		1.17	%		1.15	%
Allowance for credit losses as a percentage of loans at period end		1.19	%		1.17	%		1.17	%		1.21	%		1.19	%

*Including covered loans:*
Loans at period-end	$	9,814,995		$	9,599,726		$	9,070,562		$	8,411,771		$	8,275,257
Allowance for loan losses as a percentage of loans at period end		1.13	%		1.11	%		1.13	%		1.17	%		1.15	%
Allowance for credit losses as a percentage of loans at period end		1.15	%		1.13	%		1.17	%		1.21	%		1.19	%

WINTRUST FINANCIAL CORPORATION — SUPPLEMENTAL FINANCIAL INFORMATION
Non-Performing Loans, excluding covered loans — 5 Quarter Trends


	September 30,			June 30,			March 31,			December 31,			September 30,
(Dollars in thousands)	2010			2010			2010			2009			2009
Loans past due greater than 90 days and still accruing:
Commercial	$	—		$	99		$	—		$	561		$	758
Commercial real-estate		—			2,248			1,195			—			22,619
Home equity		—			—			21			—			100
Residential real-estate		—			—			—			412			1,172
Premium finance receivables — commercial		6,853			6,350			7,479			6,271			11,714
Premium finance receivables — life insurance		1,222			1,923			5,450			—			—
Indirect consumer		355			579			665			461			549
Consumer and other		2			3			20			95			25

Total past due greater than 90 days and still accruing		8,432			11,202			14,830			7,800			36,937

Non-accrual loans:
Commercial		19,444			17,741			15,331			16,509			19,035
Commercial real-estate		83,340			82,984			82,389			80,639			147,691
Home equity		6,144			7,149			7,730			8,883			6,808
Residential real-estate		6,644			4,436			5,460			3,779			4,077
Premium finance receivables — commercial		9,082			11,389			14,106			11,878			16,093
Premium finance receivables — life insurance		222			—			73			704			—
Indirect consumer		446			438			615			995			736
Consumer and other		569			62			426			617			282

Total non-accrual		125,891			124,199			126,130			124,004			194,722

Total non-performing loans:
Commercial		19,444			17,840			15,331			17,070			19,793
Commercial real-estate		83,340			85,232			83,584			80,639			170,310
Home equity		6,144			7,149			7,751			8,883			6,908
Residential real-estate		6,644			4,436			5,460			4,191			5,249
Premium finance receivables — commercial		15,935			17,739			21,585			18,149			27,807
Premium finance receivables — life insurance		1,444			1,923			5,523			704			—
Indirect consumer		801			1,017			1,280			1,456			1,285
Consumer and other		571			65			446			712			307

Total non-performing	$	134,323		$	135,401		$	140,960		$	131,804		$	231,659


Total non-performing loans by category as a percent of its own respective category’s period-end balance:
Commercial		1.00	%		0.98	%		0.88	%		0.98	%		1.20	%
Commercial real-estate		2.50			2.55			2.51			2.45			5.02
Home equity		0.67			0.78			0.84			0.95			0.74
Residential real-estate		1.94			1.33			1.69			1.37			1.87
Premium finance receivables — commercial		1.20			1.32			1.64			2.49			3.70
Premium finance receivables — life insurance		0.10			0.14			0.45			0.06			—
Indirect consumer		1.42			1.47			1.54			1.48			1.11
Consumer and other		0.57			0.07			0.42			0.65			0.26

Total loans		1.42	%		1.45	%		1.55	%		1.57	%		2.80	%

Allowance for loan losses as a percentage total non-performing loans		82.21	%		78.69	%		72.64	%		74.56	%		41.05	%

Wintrust Financial (WTFC) 8-KWintrust Financial Corporation Reports Third Quarter 2010 Net Income of $20.1 Million or $0.47 Per Diluted Common Share