Wintrust Financial 8K Reports Second Quarter 2011 Net Income of $11.8 Million and Strong Loan Growth | WTFC 27 Jul 11

Exhibit 99.1

News Release

FOR IMMEDIATE RELEASE July 27, 2011

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

WINTRUST FINANCIAL CORPORATION REPORTS SECOND QUARTER 2011
NET INCOME OF $11.8 MILLION AND STRONG LOAN GROWTH

LAKE FOREST, ILLINOIS— Wintrust Financial Corporation (“Wintrust” or “the Company”) (Nasdaq WTFC) announced net income of $11.8 million or $0.25 per diluted common share for the quarter ended June 30, 2011 compared to net income of $13.0 million or $0.25 per diluted common share for the quarter ended June 30, 2010 and $16.4 million or $0.36 per diluted common share for the first quarter of 2011.

The Company’s total assets of $14.6 billion at June 30, 2011 increased $920.2 million from June 30, 2010. Total deposits as of June 30, 2011 were $11.3 billion, an increase of $634.5 million from June 30, 2010. Noninterest bearing deposits increased by $443.6 million or 46.5% since June 30, 2010, while NOW, money market and savings deposits increased $374.5 million or 9.7% during the same time period. Total loans, including loans held for sale and excluding covered loans, were $10.1 billion as of June 30, 2011, an increase of $501.9 million over June 30, 2010.

Edward J. Wehmer, President and Chief Executive Officer, commented, “Today, we are reporting net income of $11.8 million for the second quarter of 2011. Core pre-tax earnings, one of our main internal measurements of profitability, improved by 10% over the second quarter of 2010 and 6% over the first quarter of 2011. The growth in core pre-tax earnings in 2011 has been hampered by an industry-wide fall-off in residential real estate loan originations and a significant decline in the accretable discount recognized as interest income on our purchased life insurance premium finance portfolio as prepayments declined. The decline in the accretable discount recognized as interest income on our purchased life insurance premium finance portfolio negatively impacted our reported net interest margins by 12 basis points on a sequential basis and 10 basis points on a year-to-date basis.

We are very pleased with growth in our loan portfolio during the second quarter. Loans outstanding, including mortgages held for sale but excluding covered assets from FDIC-assisted transactions, grew by $408 million, or 17% on an annualized basis, since March 31, 2011. This loan growth was funded primarily through deposit growth, keeping our total liquidity levels at June 30, 2011 essentially equal to previous quarter-end levels.

The Company’s average loan growth lagged behind period-end balances outstanding in the second quarter as loan growth substantially accelerated during the second quarter.”

Mr. Wehmer noted, “Our renewed franchise expansion efforts continued as we acquired River City Mortgage of Bloomington, Minnesota in April, completed the acquisition of Great Lakes Advisors, a Chicago-based investment manager, on July 1, 2011 and acquired certain assets, liabilities and banking operations of First Chicago Bank & Trust in an FDIC-assisted acquisition on July 8, 2011. These transactions bring additional residential loan origination capacity, assets under management and new banking markets to Wintrust. River City Mortgage originated approximately $500 million in mortgage loans in 2010, Great Lakes Advisors has approximately $2.4 billion in assets under management and First Chicago had seven operating branch banking locations. With the addition of First Chicago, we are now approaching 100 banking locations with 12 in the city of Chicago.”

Commenting on credit quality, Mr. Wehmer noted, “Non-performing loans as a percent of total loans was 1.57%, down from 1.63% at the previous quarter-end, while total non-performing assets to total assets declined to 1.63% from 1.71% at March 31, 2011. However, the aggregate dollar level of non-performing loans and non-performing assets remain essentially unchanged from the end of the first quarter. During the second quarter of 2011, excluding covered loans, the Company recorded a provision for loan losses of $28.7 million, net charge-offs of $26.0 million and other real-estate owned operating charges of $6.6 million. Our allowance for credit losses, excluding covered loans, increased to $119.7 million from $117.1 million at March 31, 2011.”

Continuing, Mr. Wehmer noted, “We are excited about the prospects for the remainder of 2011 and beyond. The Company had solid internal loan growth in the second quarter of 2011 and our loan pipelines remain strong. The recent acquisitions of Great Lakes Advisors and First Chicago Bank & Trust as well as the pending acquisition of Elgin State Bank will provide additional revenues and earnings and provide great platforms to continue growth. Additionally, as it relates to the net interest margin, we expect deposit costs to continue to decline and we recently entered into new interest rate swap agreements relative to certain of our trust preferred debentures which should further reduce our interest expense by approximately $5 million on an annual basis beginning late in the third quarter of this year.”

In closing, Mr. Wehmer added, “The first half of the 20th anniversary year of the Wintrust organization has set the stage for an exciting second half. Our marketplace is providing unique growth opportunities for which we believe we have positioned ourselves to take advantage of in a favorable manner. We will be disciplined in our approach to growth and given proper execution of our objectives, Wintrust should be uniquely positioned in our marketplace to be the financial institution of choice and to allow our customers, as we say, to ‘HAVE IT ALL’.”

The Company’s results in 2011 have been particularly impacted by the industry-wide fall-off in residential real estate loan originations as the outstanding balances of mortgages held for sale and mortgage warehouse lending declined rapidly during the first quarter of 2011. As these balances stabilized during the second quarter of 2011, growth in the Company’s commercial and premium finance portfolios accelerated. The graph below depicts the delayed effect on quarterly average balances in the second quarter of 2011 as period-end balances initially declined in 2011 and then grew in the second quarter of 2011. Growth of average total loans in the third quarter will be positively impacted by higher beginning balances at the start of the third quarter, the addition of First Chicago and continued internal loan growth. Total loans include mortgage loans held for sale and exclude covered loans. (Dollars in billions)

Total Loans

The Company’s results in 2011 have also been impacted by the level of accretable discount recognized as interest income on its purchased premium life insurance portfolio as prepayments have declined. The graph below shows the quarterly discount recognized as interest income on the purchased life insurance premium finance portfolio as a function of prepayments and accretion for the past five quarterly periods. (Dollars in millions)

Accretable Discount Recognized as Interest Income

The following tables show the components of the accretable discount recognized as interest income over the past six quarters on the purchased life insurance premium portfolio. The impact on the linked quarter, sequential quarter and year-to-date interest income and net interest margin is also shown.

Accretable Discount Components


(dollars in millions)	Accretion		Prepayments		Total

1Q10	$	5.4	$	3.7	$	9.1
2Q10		4.8		6.9		11.7
3Q10		5.1		3.4		8.5
4Q10		6.9		7.7		14.6
1Q11		6.4		2.7		9.1
2Q11		3.6		1.5		5.1

Impact of Lower Prepayments on Interest Income and Net Interest Margin


	Change in			Change in						Impact on
(dollars in millions)	Accretion			Prepayments			Total			Net Interest Margin

Linked Qtr — 2Q11 vs 2Q10	$	(1.2	)	$	(5.4	)	$	(6.6	)	(20) bps
Sequential Qtr — 2Q11 vs 1Q11		(2.8	)		(1.2	)		(4.0	)	(12) bps
YTD 2Q11 vs YTD 2Q10		(0.2	)		(6.4	)		(6.6	)	(10) bps

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


										% or⁽⁴⁾			% or
										basis point (bp)			basis point (bp)
	Three Months Ended									change			change
										from			from
	June 30,			March 31,			June 30,			1st Quarter			2nd Quarter
	2011			2011			2010			2011			2010
Net income	$	11,750		$	16,402		$	13,009			(28	)%		(10	)%
Net income (loss) per common share — diluted	$	0.25		$	0.36		$	0.25			(31	)%		—	%
Core pre-tax earnings⁽²⁾	$	52,751		$	49,544		$	47,912			6	%		10	%
Net revenue⁽¹⁾	$	145,358		$	150,501		$	154,750			(3	)%		(6	)%
Net interest income	$	108,706		$	109,614		$	104,314			(1	)%		4	%
Net interest margin⁽²⁾		3.40	%		3.48	%		3.43	%	(8		) bp	(3		) bp
Net overhead ratio⁽³⁾		1.72	%		1.66	%		1.26	%	6		bp	46		bp
Return on average assets		0.33	%		0.47	%		0.39	%	(14		) bp	(6		) bp
Return on average common equity		3.05	%		4.49	%		2.98	%	(144		) bp	7		bp

At end of period
Total assets	$	14,615,897		$	14,094,294		$	13,708,560			15	%		7	%
Total loans, excluding loans held-for-sale, excluding covered loans	$	9,925,077		$	9,561,802		$	9,324,163			15	%		6	%
Total loans, including loans held-for-sale, excluding covered loans	$	10,064,041		$	9,656,288		$	9,562,144			17	%		5	%
Total deposits	$	11,259,260		$	10,915,169		$	10,624,742			13	%		6	%
Total shareholders’ equity	$	1,473,386		$	1,453,253		$	1,384,736			6	%		6	%


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

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

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

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

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

Items Impacting Comparative Financial Results: Acquisitions and Capital

Acquisitions

On April 13, 2011, the Company announced the acquisition of certain assets and the assumption of certain liabilities of the mortgage banking business of River City Mortgage, LLC (“River City”) of Bloomington, Minnesota. With offices in Minnesota, Nebraska and North Dakota, River City originated nearly $500 million in mortgage loans in 2010.

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

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

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

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

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

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

In summary, in the FDIC-assisted transactions:

• Schaumburg assumed approximately $161 million of the outstanding deposits and approximately $163 million of assets of TBOC, prior to purchase accounting adjustments. A bargain purchase gain of $8.6 million was recognized on this transaction.

• Northbrook assumed approximately $50 million of the outstanding deposits and approximately $51 million of assets of CFBC, prior to purchase accounting adjustments. A bargain purchase gain of $2.0 million was recognized on this transaction.

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

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

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

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

Wintrust Financial Corporate Headquarters

On June 8, 2011, the Company purchased a 277,000 square foot 11-story office building complex at 9700 W. Higgins Road, Rosemont, Illinois for approximately $22.5 million. The building will serve as the Company’s corporate and mortgage division headquarters and initially house approximately 400 employees. Currently, the building is approximately 50% occupied through lease tenants. The Company will begin to occupy the entire remaining area of the building in December 2011.

Capital Ratios

As of June 30, 2011, the Company’s estimated capital ratios were 13.5% for total risk-based capital, 12.3% for tier 1 risk-based capital and 10.3% for leverage, well above the well capitalized guidelines. Additionally, the Company’s tangible common equity ratio was 7.9% at June 30, 2011.

Financial Performance Overview — Second Quarter of 2011

For the second quarter of 2011, net interest income totaled $108.7 million, an increase of $4.4 million as compared to the second quarter of 2010 and a decrease of $908,000 as compared to the first quarter of 2011. Average earning assets for the second quarter of 2011 increased by $656.1 million compared to the second quarter of 2010. Average earning asset growth over the past 12 months was primarily a result of the $503.8 million increase in average loans, $208.1 million of average covered loan growth from the FDIC-assisted bank acquisitions partially offset by a $55.8 million decrease in average liquidity management and other earning assets. Growth in the life insurance premium finance portfolio of $292.5 million and growth in the commercial and industrial portfolio of $114.0 million accounted for the bulk of the total average loan growth over the past 12 months. The average earning asset growth of $656.1 million over the past 12 months was primarily funded by a $374.8 million increase in the average balances of savings, NOW, MMA and Wealth Management deposits, and an increase in the average balance of net free funds of $400.4 million.

The net interest margin for the second quarter of 2011 was 3.40% compared to 3.48% in the first quarter of 2011 and 3.43% in the second quarter of 2010. The eight basis point decrease in net interest margin in the second quarter of 2011 compared to the first quarter of 2011 resulted from a $4.0 million decrease in accretable discount recognized as interest income on the purchased life insurance premium portfolio as prepayments declined, lowering interest income recognized on prepayments and reducing accretion on the remaining balance of the pool as the estimated remaining life extended. Absent this decline in the second quarter the net interest margin would have been 3.52%. The impact of the decline was partially offset by continued lower repricing on interest-bearing deposits in

the second quarter which benefited the net interest margin. The cost of interest-bearing deposits declined seven basis points in the second quarter. The Company continues to see a beneficial shift in its deposit mix as average non-interest bearing deposits comprised 12.4% of total average deposits in the second quarter of 2011 compared to 11.7% in the first quarter of 2011.

The net interest margin decreased three basis points in the second quarter of 2011 compared to the second quarter of 2010. The driver of this decline was a $6.6 million decrease in accretable discount recognized as interest income on the purchased life insurance premium portfolio as prepayments declined, lowering interest income recognized on prepayments and reducing accretion on the remaining balance of the pool as the estimated remaining life extended. Absent this decline, the net interest margin in the second quarter would have been 3.60%. The cost of interest-bearing deposits declined 41 basis points from the second quarter of 2010 to the second quarter of 2011.

Non-interest income totaled $36.7 million in the second quarter of 2011, decreasing $13.8 million, or 27%, compared to the second quarter of 2010 and decreasing $4.2 million, or 10%, compared to the first quarter of 2011. The change was primarily attributable to the lower bargain purchase gains recorded during the current period relating to the FDIC-assisted transactions than during the comparable periods. Mortgage banking revenue increased $4.8 million when compared to the second quarter of 2010 and increased $1.2 million when compared to the first quarter of 2011. The increase in the current quarter as compared to the second quarter of 2010 resulted primarily from estimations of fewer loss indemnification requests from investors. Loans sold to the secondary market were $459 million in the second quarter of 2011 compared to $732 million in the second quarter of 2010 and $562 million in the first quarter of 2011 (see “Non-Interest Income” section later in this document for further detail).

Non-interest expense totaled $97.2 million in the second quarter of 2011, increasing $4.5 million, or 5%, compared to the second quarter of 2010 and decreasing $903,000 compared to the first quarter of 2011. The increase compared to the second quarter of 2010 was primarily attributable to a $2.4 million increase in salaries and employee benefits. The increase in salaries and employee benefits was attributable to a $3.3 million increase in salaries caused by the addition of employees from the FDIC-assisted transactions and larger staffing related to organic Company growth, and a $1.3 million increase from employee benefits (primarily related to health plans and payroll taxes), partially offset by a $2.2 million decrease in bonus and commissions attributable to variable pay based revenue.

Financial Performance Overview — First Six Months of 2011

The net interest margin for the first six months of 2011 was 3.44%, compared to 3.41% in the first six months of 2010. Absent the negative impact described earlier from lower accretable discount recognized as interest

income on the purchased life insurance premium portfolio, the 2011 year-to-date net interest margin would have been 3.54%. The impact of the decline was partially offset by continued lower repricing on interest-bearing deposits over the past 12 months. Average earning assets for the first six months of 2011 increased by $961.1 million compared to the first six months of 2010. This average earning asset growth was primarily a result of the $600.9 million increase in average loans, $267.0 million of average covered loan growth from the FDIC-assisted bank acquisitions and a $93.2 million increase in liquidity management and other earning assets. Growth in the life insurance premium finance portfolio of $309.7 million and growth in the commercial and industrial portfolio of $96.8 million accounted for the bulk of the total average loan growth over the past 12 months. The average earning asset growth of $961.1 million over the past 12 months was primarily funded by a $404.6 million increase in the average balances of savings, NOW, MMA and Wealth Management deposits and an increase in the average balance of net free funds of $466.2 million.

Non-interest income totaled $77.5 million in the first six months of 2011, decreasing $15.5 million, or 17%, compared to the first six months of 2010. The change was primarily attributable to lower bargain purchase gains recorded during the current period relating to the FDIC-assisted transactions than during the comparable period. Mortgage banking revenue increased $6.7 million when compared to the first six months of 2010. This increase resulted primarily from estimations of fewer loss indemnification requests from investors. Mortgages originated for sale totaled over $1.0 billion in the first six months of 2011 compared to $1.4 billion in the first six months of 2010.

Non-interest expense totaled $195.3 million in the first six months of 2011, increasing $18.7 million, or 11%, compared to the first six months of 2010. The increase compared to the first six months of 2010 was primarily attributable to a $9.5 million increase in salaries and employee benefits. The increase in salaries and employee benefits was attributable to a $7.3 million increase in salaries caused by the addition of employees from the FDIC-assisted transactions and larger staffing related to organic Company growth, and a $3.3 million increase from employee benefits (primarily related to health plans and payroll taxes), partially offset by a $1.2 million decrease in bonus and commissions attributable to variable pay based revenue. Additionally, OREO related expenses increased $5.2 million and professional fees increased $1.0 million, primarily related to increased legal costs related to non-performing assets and recent acquisitions.

The Company’s effective tax rate increased to 38.8% for the first six months of 2011, up from 37.3% in the first six months of 2010. This increase is primarily attributable to two items. The increased Illinois corporate tax rate on 2011 earnings increased our total tax expense by approximately $320,000. Additionally, the Company

recorded approximately $300,000 of additional tax expense in the first quarter due to a one-time adjustment to change the recorded value of its deferred tax liabilities as of the beginning of 2011 as a result of the Illinois corporate tax rate change that was effective on January 1, 2011.

Financial Performance Overview — Credit Quality

Non-performing loans, excluding covered loans, totaled $156.1 million, or 1.57% of total loans, at June 30, 2011, compared to $155.4 million, or 1.63% of total loans, at March 31, 2011 and $135.4 million, or 1.45% of total loans, at June 30, 2010. OREO, excluding covered OREO, of $82.8 million at June 30, 2011 decreased $2.5 million compared to $85.3 million at March 31, 2011 and decreased $3.6 million compared to $86.4 million at June 30, 2010. Management continues to work with certain borrowers to restructure performing loans. These actions help these borrowers maintain their homes or businesses and keep these loans in an accruing status for the Company. As of June 30, 2011, a total of $103.0 million of outstanding loan balances qualified as restructured loans, with $85.8 million of these modified loans in an accruing status.

The provision for credit losses totaled $29.2 million for the second quarter of 2011 compared to $25.3 million for the first quarter of 2011 and $41.3 million in the second quarter of 2010. Net charge-offs as a percentage of loans, excluding covered loans, for the second quarter of 2011 totaled 106 basis points on an annualized basis compared to 163 basis points on an annualized basis in the second quarter of 2010 and 104 basis points on an annualized basis in the first quarter of 2011.

Excluding the allowance for covered loan losses, the allowance for credit losses at June 30, 2011 totaled $119.7 million, or 1.21% of total loans, compared to $117.1 million, or 1.22% of total loans, at March 31, 2011 and $108.7 million, or 1.17% of total loans, at June 30, 2010.

Acquisitions Subsequent to Quarter-End

On July 8, 2011, the Company announced that its wholly-owned subsidiary bank, Northbrook, acquired certain assets and liabilities and the banking operations of First Chicago Bank & Trust (“First Chicago”) in an FDIC-assisted transaction. First Chicago operated seven locations in Illinois: three in Chicago, one each in Bloomingdale, Itasca, Norridge and Park Ridge, and had approximately $959 million in total assets and $887 million in total deposits as of March 31, 2011. Northbrook acquired substantially all of First Chicago’s assets at a discount of approximately 12% and assumed all of the non-brokered deposits at a premium of approximately 0.5%. Based upon initial calculations, the Company anticipates it will record a bargain purchase gain of at least $21 million in the third quarter of 2011 relating to the First Chicago transaction.

On July 1, 2011, the Company announced the completion of its previously announced acquisition of Great Lakes Advisors, Inc. (“Great Lakes”), a Chicago-based investment manager with approximately $2.4 billion in assets under management. Great Lakes merged with Wintrust’s existing asset management business, Wintrust Capital Management, LLC and operates as “Great Lakes Advisors, LLC, a Wintrust Wealth Management Company” and will have assets under management of nearly $4.5 billion.

On July 26, 2011, the Company announced the signing of a definitive agreement to acquire Elgin State Bancorp, Inc. (“ESBI”). ESBI is the parent company of Elgin State Bank, which operates three banking locations in Elgin, Illinois. As of March 31, 2011, Elgin State Bank had approximately $288 million in assets and $259 million in deposits.

WINTRUST FINANCIAL CORPORATION

Selected Financial Highlights


	Three Months Ended						Six Months Ended
	June 30,						June 30,
	2011			2010			2011			2010
Selected Financial Condition Data (at end of period):
Total assets	$	14,615,897		$	13,708,560
Total loans, excluding covered loans		9,925,077			9,324,163
Total deposits		11,259,260			10,624,742
Junior subordinated debentures		249,493			249,493
Total shareholders’ equity		1,473,386			1,384,736

Selected Statements of Income Data:
Net interest income	$	108,706		$	104,314		$	218,320		$	200,179
Net revenue⁽¹⁾		145,358			154,750			295,859			293,223
Core pre-tax earnings⁽²⁾		52,751			47,912			102,295			89,990
Net income		11,750			13,009			28,152			29,027
Net income (loss) per common share — Basic	$	0.31		$	0.26		$	0.75		$	0.67
Net income (loss) per common share — Diluted	$	0.25		$	0.25		$	0.60		$	0.64

Selected Financial Ratios and Other Data:
Performance Ratios:
Net interest margin⁽²⁾		3.40	%		3.43	%		3.44	%		3.41	%
Non-interest income to average assets		1.04	%		1.51	%		1.11	%		1.44	%
Non-interest expense to average assets		2.76	%		2.78	%		2.80	%		2.74	%
Net overhead ratio⁽³⁾		1.72	%		1.26	%		1.69	%		1.30	%
Efficiency ratio^{(2) (4)}		67.22	%		59.72	%		66.11	%		60.13	%
Return on average assets		0.33	%		0.39	%		0.40	%		0.45	%
Return on average common equity		3.05	%		2.98	%		3.76	%		3.86	%

Average total assets	$	14,105,136		$	13,390,537		$	14,059,339		$	12,993,056
Average total shareholders’ equity		1,460,071			1,371,689			1,449,031			1,284,460
Average loans to average deposits ratio (excluding covered loans)		90.9	%		91.0	%		91.1	%		92.7	%
Average loans to average deposits ratio (including covered loans)		94.8	%		93.0	%		94.5	%		93.8	%

*Common Share Data at end of period:*
Market price per common share	$	32.18		$	33.34
Book value per common share⁽²⁾	$	33.63		$	35.33
Tangible common book value per share⁽²⁾	$	26.67		$	25.96
Common shares outstanding		34,988,125			31,084,298

Other Data at end of period:⁽⁹⁾
Leverage Ratio⁽⁵⁾		10.3	%		10.2	%
Tier 1 capital to risk-weighted assets⁽⁵⁾		12.3	%		13.0	%
Total capital to risk-weighted assets⁽⁵⁾		13.5	%		14.3	%
Tangible common equity ratio (TCE)⁽²⁾⁽⁸⁾		7.9	%		6.0	%
Allowance for credit losses⁽⁶⁾	$	119,697		$	108,716
Credit discounts on purchased premium finance receivables — life insurance⁽⁷⁾	$	17,458		$	28,217
Non-performing loans	$	156,072		$	135,401
Allowance for credit losses to total loans⁽⁶⁾		1.21	%		1.17	%
Non-performing loans to total loans		1.57	%		1.45	%
Number of:
Bank subsidiaries		15			15
Non-bank subsidiaries		7			8
Banking offices		88			85


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

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

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

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

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

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

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

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

⁽⁹⁾		Asset quality ratios exclude covered loans.

WINTRUST FINANCIAL CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CONDITION


	(Unaudited)						(Unaudited)
	June 30,			December 31,			June 30,
(In thousands)	2011			2010			2010
Assets
Cash and due from banks	$	140,434		$	153,690		$	123,712
Federal funds sold and securities purchased under resale agreements		43,634			18,890			28,664
Interest-bearing deposits with other banks		990,308			865,575			1,110,123
Available-for-sale securities, at fair value		1,456,426			1,496,302			1,418,035
Trading account securities		509			4,879			38,261
Federal Home Loan Bank and Federal Reserve Bank stock, at cost		86,761			82,407			79,300
Brokerage customer receivables		29,736			24,549			24,291
Mortgage loans held-for-sale, at fair value		133,083			356,662			222,703
Mortgage loans held-for-sale, at lower of cost or market		5,881			14,785			15,278
Loans, net of unearned income, excluding covered loans		9,925,077			9,599,886			9,324,163
Covered loans		408,669			334,353			275,563

Total loans		10,333,746			9,934,239			9,599,726
Less: Allowance for loan losses		117,362			113,903			106,547
Less: Allowance for covered loan losses		7,443			—			—

Net loans		10,208,941			9,820,336			9,493,179
Premises and equipment, net		403,577			363,696			346,806
FDIC indemnification asset		110,049			118,182			114,102
Accrued interest receivable and other assets		389,634			366,438			374,172
Trade date securities receivable		322,091			—			28,634
Goodwill		283,301			281,190			278,025
Other intangible assets		11,532			12,575			13,275

Total assets	$	14,615,897		$	13,980,156		$	13,708,560


Liabilities and Shareholders’ Equity
Deposits:
Non-interest bearing	$	1,397,433		$	1,201,194		$	953,814
Interest bearing		9,861,827			9,602,479			9,670,928

Total deposits		11,259,260			10,803,673			10,624,742
Notes payable		1,000			1,000			1,000
Federal Home Loan Bank advances		423,500			423,500			415,571
Other borrowings		432,706			260,620			218,424
Secured borrowings — owed to securitization investors		600,000			600,000			600,000
Subordinated notes		40,000			50,000			55,000
Junior subordinated debentures		249,493			249,493			249,493
Trade date securities payable		2,243			—			200
Accrued interest payable and other liabilities		134,309			155,321			159,394

Total liabilities		13,142,511			12,543,607			12,323,824


Shareholders’ Equity:
Preferred stock		49,704			49,640			286,460
Common stock		34,988			34,864			31,084
Surplus		969,315			965,203			680,261
Treasury stock		(50	)		—			(4	)
Retained earnings		415,297			392,354			381,969
Accumulated other comprehensive income (loss)		4,132			(5,512	)		4,966

Total shareholders’ equity		1,473,386			1,436,549			1,384,736

Total liabilities and shareholders’ equity	$	14,615,897		$	13,980,156		$	13,708,560

WINTRUST FINANCIAL CORPORATION AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED)


	Three Months Ended						Six Months Ended
	June 30,						June 30,
(In thousands, except per share data)	2011			2010			2011			2010
Interest income
Interest and fees on loans	$	132,338		$	135,800		$	268,881		$	265,342
Interest bearing deposits with banks		870			1,215			1,806			2,489
Federal funds sold and securities purchased under resale agreements		23			34			55			83
Securities		11,438			11,218			20,978			22,230
Trading account securities		10			343			23			364
Federal Home Loan Bank and Federal Reserve Bank stock		572			472			1,122			931
Brokerage customer receivables		194			166			360			304

Total interest income		145,445			149,248			293,225			291,743

Interest expense
Interest on deposits		22,404			31,626			46,360			64,838
Interest on Federal Home Loan Bank advances		4,010			4,094			7,968			8,440
Interest on notes payable and other borrowings		2,715			1,439			5,345			2,901
Interest on secured borrowings — owed to securitization investors		2,994			3,115			6,034			6,109
Interest on subordinated notes		194			256			406			497
Interest on junior subordinated debentures		4,422			4,404			8,792			8,779

Total interest expense		36,739			44,934			74,905			91,564

Net interest income		108,706			104,314			218,320			200,179
Provision for credit losses		29,187			41,297			54,531			70,342

Net interest income after provision for credit losses		79,519			63,017			163,789			129,837

Non-interest income
Wealth management		10,601			9,193			20,837			17,860
Mortgage banking		12,817			7,985			24,448			17,713
Service charges on deposit accounts		3,594			3,371			6,905			6,703
Gains on available-for-sale securities, net		1,152			46			1,258			438
Gain on bargain purchases		746			26,494			10,584			37,388
Trading (losses) gains		(30	)		(1,617	)		(470	)		4,344
Other		7,772			4,964			13,977			8,598

Total non-interest income		36,652			50,436			77,539			93,044

Non-interest expense
Salaries and employee benefits		53,079			50,649			109,178			99,721
Equipment		4,409			4,046			8,673			7,941
Occupancy, net		6,772			6,033			13,277			12,263
Data processing		3,147			3,669			6,670			7,076
Advertising and marketing		1,440			1,470			3,054			2,784
Professional fees		4,533			3,957			8,079			7,064
Amortization of other intangible assets		704			674			1,393			1,319
FDIC insurance		3,281			5,005			7,799			8,814
OREO expenses, net		6,577			5,843			12,385			7,181
Other		13,264			11,317			24,807			22,438

Total non-interest expense		97,206			92,663			195,315			176,601

Income before taxes		18,965			20,790			46,013			46,280
Income tax expense		7,215			7,781			17,861			17,253

Net income	$	11,750		$	13,009		$	28,152		$	29,027

Preferred stock dividends and discount accretion	$	1,033		$	4,943		$	2,064		$	9,887

Net income applicable to common shares	$	10,717		$	8,066		$	26,088		$	19,140

Net income per common share - Basic	$	0.31		$	0.26		$	0.75		$	0.67

Net income per common share - Diluted	$	0.25		$	0.25		$	0.60		$	0.64

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

Weighted average common shares outstanding		34,971			31,074			34,950			28,522
Dilutive potential common shares		8,438			1,267			8,437			1,203

Average common shares and dilutive common shares		43,409			32,341			43,387			29,725

SUPPLEMENTAL FINANCIAL MEASURES/RATIOS

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

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

The following table presents a reconciliation of certain non-GAAP performance measures and ratios used by the Company to evaluate and measure the Company’s performance to the most directly comparable GAAP financial measures for the last 5 quarters:


	Three Months Ended															Six Months Ended
(Dollars and shares	June 30,			March 31,			December 31,			September 30,			June 30,			June 30,
in thousands)	2011			2011			2010			2010			2010			2011			2010
Calculation of Net Interest Margin and Efficiency Ratio
(A) Interest Income (GAAP)	$	145,445		$	147,780		$	153,962		$	147,401		$	149,248		$	293,225		$	291,743
Taxable-equivalent adjustment:
- Loans		110			116			79			85			90			226			169
- Liquidity management assets		296			295			326			324			366			591			727
- Other earning assets		2			3			—			7			5			5			10

Interest Income - FTE	$	145,853		$	148,194		$	154,367		$	147,817		$	149,709		$	294,047		$	292,649
(B) Interest Expense (GAAP)	$	36,739		$	38,166		$	41,285		$	44,421		$	44,934		$	74,905		$	91,564

Net interest income — FTE		109,114			110,028			113,082			103,396			104,775			219,142			201,085

(C) Net Interest Income (GAAP) (A minus B)	$	108,706		$	109,614		$	112,677		$	102,980		$	104,314		$	218,320		$	200,179

(D) Net interest margin (GAAP)		3.38	%		3.46	%		3.44	%		3.20	%		3.42	%		3.42	%		3.39	%
Net interest margin — FTE		3.40	%		3.48	%		3.46	%		3.22	%		3.43	%		3.44	%		3.41	%
(E) Efficiency ratio (GAAP)		67.41	%		65.23	%		67.65	%		67.20	%		59.90	%		66.30	%		60.32	%
Efficiency ratio - FTE		67.22	%		65.05	%		67.48	%		67.01	%		59.72	%		66.11	%		60.13	%

Calculation of Tangible Common Equity ratio (at period end)
Total shareholders’ equity	$	1,473,386		$	1,453,253		$	1,436,549		$	1,398,912		$	1,384,736
Less: Preferred stock		(49,704	)		(49,672	)		(49,640	)		(287,234	)		(286,460	)
Less: Intangible assets		(294,833	)		(293,996	)		(293,765	)		(291,219	)		(291,300	)

(F) Total tangible common shareholders’ equity	$	1,128,849		$	1,109,585		$	1,093,144		$	820,459		$	806,976


Total assets	$	14,615,897		$	14,094,294		$	13,980,156		$	14,100,368		$	13,708,560
Less: Intangible assets		(294,833	)		(293,996	)		(293,765	)		(291,219	)		(291,300	)

(G) Total tangible assets	$	14,321,064		$	13,800,298		$	13,686,391		$	13,809,149		$	13,417,260


Tangible common equity ratio (F/G)		7.9	%		8.0	%		8.0	%		5.9	%		6.0	%

Calculation of Core Pre-Tax Earnings
Income before taxes	$	18,965		$	27,048		$	22,142		$	32,385		$	20,790		$	46,013		$	46,280
Add: Provision for credit losses		29,187			25,344			28,795			25,528			41,297			54,531			70,342
Add: OREO expenses, net		6,577			5,808			7,384			4,767			5,843			12,385			7,181
Add: Recourse obligation on loans previously sold		(916	)		103			1,365			1,432			4,721			(813	)		8,173
Add: Covered loan expense		806			745			342			162			184			1,551			184
Less: Gain on bargain purchases		(746	)		(9,838	)		(250	)		(6,593	)		(26,494	)		(10,584	)		(37,388	)
Less: Trading losses (gains)		30			440			(611	)		(210	)		1,617			470			(4,344	)
Less: (Gains) losses on available-for-sale securities, net		(1,152	)		(106	)		(159	)		(9,235	)		(46	)		(1,258	)		(438	)

Core pre-tax earnings	$	52,751		$	49,544		$	59,008		$	48,236		$	47,912		$	102,295		$	89,990


Calculation of book value per share
Total shareholders’ equity	$	1,473,386		$	1,453,253		$	1,436,549		$	1,398,912		$	1,384,736
Less: Preferred stock		(49,704	)		(49,672	)		(49,640	)		(287,234	)		(286,460	)

(H) Total common equity	$	1,423,682		$	1,403,581		$	1,386,909		$	1,111,678		$	1,098,276


Actual common shares outstanding		34,988			34,947			34,864			31,144			31,084
Add: TEU conversion shares		7,342			6,696			7,512			—			—

(I) Common shares used for book value calculation		42,330			41,643			42,376			31,144			31,084


Book value per share (H/I)	$	33.63		$	33.70		$	32.73		$	35.70		$	35.33
Tangible common book value per share (F/I)	$	26.67		$	26.65		$	25.80		$	26.34		$	25.96

LOANS


Loan Portfolio Mix and Growth Rates										% Growth
										From⁽¹⁾			From
	June 30,			December 31,			June 30,			December 31,			June 30,
(Dollars in thousands)	2011			2010			2010			2010			2010
Balance:
Commercial	$	2,132,436		$	2,049,326		$	1,827,618			8	%		17	%
Commercial real-estate		3,374,668			3,338,007			3,347,823			2			1
Home equity		880,702			914,412			922,305			(7	)		(5	)
Residential real-estate		329,381			353,336			332,673			(14	)		(1	)
Premium finance receivables — commercial		1,429,436			1,265,500			1,346,985			26			6
Premium finance receivables — life insurance		1,619,668			1,521,886			1,378,657			13			17
Indirect consumer⁽²⁾		57,718			51,147			69,011			26			(16	)
Consumer and other		101,068			106,272			99,091			(10	)		2

Total loans, net of unearned income, excluding covered loans	$	9,925,077		$	9,599,886		$	9,324,163			7	%		6	%
Covered loans		408,669			334,353			275,563			45			48

Total loans, net of unearned income	$	10,333,746		$	9,934,239		$	9,599,726			8	%		8	%


Mix:
Commercial		20	%		21	%		19	%
Commercial real-estate		33			34			35
Home equity		8			9			10
Residential real-estate		3			3			3
Premium finance receivables — commercial		14			13			14
Premium finance receivables — life insurance		16			15			14
Indirect consumer⁽²⁾		1			1			1
Consumer and other		1			1			1

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

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


⁽¹⁾		Annualized

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

Commercial and Commercial Real-Estate Loans, excluding covered loans
As of June 30, 2011


								> 90 Days		Allowance
			% of					Past Due		For Loan
			Total					and Still		Losses
(Dollars in thousands)	Balance		Balance			Nonaccrual		Accruing		Allocation
Commercial:
Commercial and industrial	$	1,362,662		24.7	%	$	22,289	$	—	$	22,111
Franchise		114,134		2.1			1,792		—		978
Mortgage warehouse lines of credit		68,477		1.2			—		—		559
Community Advantage — homeowner associations		73,929		1.3			—		—		185
Aircraft		21,231		0.4			—		—		53
Asset-based lending		366,096		6.6			2,087		—		7,444
Municipal		63,296		1.1			—		—		1,099
Leases		62,535		1.1			—		—		417
Other		76		—			—		—		1

Total commercial	$	2,132,436		38.5	%	$	26,168	$	—	$	32,847


Commercial Real-Estate:
Residential construction	$	90,755		1.6		$	3,011	$	—	$	2,751
Commercial construction		137,647		2.5			2,453		—		3,849
Land		212,934		3.9			33,980		—		15,104
Office		532,382		9.7			17,503		—		8,287
Industrial		514,534		9.3			2,470		—		4,735
Retail		524,788		9.5			8,164		—		5,589
Multi-family		316,151		5.7			4,947		—		8,488
Mixed use and other		1,045,477		19.3			17,265		—		12,900

Total commercial real-estate	$	3,374,668		61.5	%	$	89,793	$	—	$	61,703

Total commercial and commercial real-estate	$	5,507,104		100.0	%	$	115,961	$	—	$	94,550


Commercial real-estate — collateral location by state:
Illinois	$	2,735,375		81.1	%
Wisconsin		349,436		10.4

Total primary markets	$	3,084,811		91.5	%

Florida		57,993		1.7
Arizona		41,295		1.2
Indiana		48,870		1.4
Other (no individual state greater than 0.5%)		141,699		4.2

Total	$	3,374,668		100.0	%

DEPOSITS


Deposit Portfolio Mix and Growth Rates										% Growth
										From⁽¹⁾			From
	June 30,			December 31,			June 30,			December 31,			June 30,
(Dollars in thousands)	2011			2010			2010			2010			2010
Balance:
Non-interest bearing	$	1,397,433		$	1,201,194		$	953,814			33	%		47	%
NOW		1,530,068			1,561,507			1,560,733			(4	)		(2	)
Wealth Management deposits⁽²⁾		737,428			658,660			694,830			24			6
Money Market		1,985,661			1,759,866			1,722,729			26			15
Savings		736,974			744,534			594,753			(2	)		24
Time certificates of deposit		4,871,696			4,877,912			5,097,883			—			(4	)

Total deposits	$	11,259,260		$	10,803,673		$	10,624,742			9	%		6	%


Mix:
Non-interest bearing		12	%		11	%		9	%
NOW		14			15			15
Wealth Management deposits⁽²⁾		6			6			6
Money Market		18			16			16
Savings		7			7			6
Time certificates of deposit		43			45			48

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 June 30, 2011	Non-										Average
	Interest		Savings								Rate of
	Bearing		and				Time				Maturing Time
	and		Money		Wealth		Certificates		Total		Certificates
(Dollars in thousands)	NOW⁽¹⁾		Market⁽¹⁾		Mgt⁽¹⁾		of Deposit		Deposits		of Deposit
1-3 months	$	2,927,501	$	2,722,635	$	737,428	$	1,022,882	$	7,410,446		1.23	%
4-6 months								843,694	$	843,694		1.23
7-9 months								665,411	$	665,411		1.24
10-12 months								666,345	$	666,345		1.21
13-18 months								653,088	$	653,088		1.59
19-24 months								346,255	$	346,255		1.68
24+ months								674,021	$	674,021		2.27

Total deposits	$	2,927,501	$	2,722,635	$	737,428	$	4,871,696	$	11,259,260		1.46	%


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

NET INTEREST INCOME

The following table presents a summary of Wintrust’s average balances, net interest income and related net interest margins, calculated on a fully tax-equivalent basis, for the second quarter of 2011 compared to the second quarter of 2010 (linked quarters):


	For the Three Months Ended								For the Three Months Ended
	June 30, 2011								June 30, 2010
(Dollars in thousands)	Average			Interest		Rate			Average			Interest		Rate
Liquidity management assets^{(1) (2) (7)}	$	2,591,398		$	13,198		2.04	%	$	2,613,179		$	13,305		2.04	%
Other earning assets^{(2) (3) (7)}		28,886			208		2.89			62,874			515		3.28
Loans, net of unearned income^{(2) (4) (7)}		9,859,789			124,047		5.05			9,356,033			133,207		5.71
Covered loans		418,129			8,400		8.06			210,030			2,682		5.12

Total earning assets⁽⁷⁾	$	12,898,202		$	145,853		4.54	%	$	12,242,116		$	149,709		4.91	%

Allowance for loan losses		(125,537	)							(108,764	)
Cash and due from banks		135,670								137,531
Other assets		1,196,801								1,119,654

Total assets	$	14,105,136							$	13,390,537


Interest-bearing deposits		9,491,778		$	22,404		0.95	%	$	9,348,541		$	31,626		1.36	%
Federal Home Loan Bank advances		421,502			4,010		3.82			417,835			4,094		3.93
Notes payable and other borrowings		338,304			2,715		3.22			217,751			1,439		2.65
Secured borrowings — owed to securitization investors		600,000			2,994		2.00			600,000			3,115		2.08
Subordinated notes		45,440			194		1.69			57,198			256		1.77
Junior subordinated notes		249,493			4,422		7.01			249,493			4,404		6.98

Total interest-bearing liabilities	$	11,146,517		$	36,739		1.32	%	$	10,890,818		$	44,934		1.65	%

Non-interest bearing deposits		1,349,549								932,046
Other liabilities		148,999								195,984
Equity		1,460,071								1,371,689

Total liabilities and shareholders’ equity	$	14,105,136							$	13,390,537


Interest rate spread^{(5) (7)}							3.22	%							3.26	%
Net free funds/contribution⁽⁶⁾	$	1,751,685					0.18	%	$	1,351,298					0.17	%

Net interest income/Net interest margin⁽⁷⁾				$	109,114		3.40	%				$	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 June 30, 2011 and 2010 were $408,000 and $461,000, respectively.

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

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

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

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

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

The net interest margin decreased three basis points in the second quarter of 2011 compared to the second quarter of 2010. The driver of this decline was a $6.6 million decrease in accretable discount recognized as interest income on the purchased life insurance premium portfolio as prepayments declined, lowering income recognized on prepayments and reducing accretion on the remaining balance of the pool as the estimated remaining life extended. Absent this decline, the net interest margin in the second quarter would have been 3.60%. The cost of interest-bearing deposits declined 41 basis points from the second quarter of 2010 to the second quarter of 2011.


	For the Three Months Ended								For the Three Months Ended
	June 30, 2011								March 31, 2011
(Dollars in thousands)	Average			Interest		Rate			Average			Interest		Rate
Liquidity management assets^{(1) (2) (7)}	$	2,591,398		$	13,198		2.04	%	$	2,632,012		$	11,354		1.75	%
Other earning assets^{(2) (3) (7)}		28,886			208		2.89			27,718			181		2.65
Loans, net of unearned income^{(2) (4) (7)}		9,859,789			124,047		5.05			9,849,309			129,587		5.34
Covered loans		418,129			8,400		8.06			326,571			7,072		8.78

Total earning assets⁽⁷⁾	$	12,898,202		$	145,853		4.54	%	$	12,835,610		$	148,194		4.68	%

Allowance for loan losses		(125,537	)							(118,610	)
Cash and due from banks		135,670								152,264
Other assets		1,196,801								1,149,261

Total assets	$	14,105,136							$	14,018,525


Interest-bearing deposits		9,491,778		$	22,404		0.95	%	$	9,542,637		$	23,956		1.02	%
Federal Home Loan Bank advances		421,502			4,010		3.82			416,021			3,958		3.86
Notes payable and other borrowings		338,304			2,715		3.22			266,379			2,630		4.00
Secured borrowings — owed to securitization investors		600,000			2,994		2.00			600,000			3,040		2.05
Subordinated notes		45,440			194		1.69			50,000			212		1.69
Junior subordinated notes		249,493			4,422		7.01			249,493			4,370		7.01

Total interest-bearing liabilities	$	11,146,517		$	36,739		1.32	%	$	11,124,530		$	38,166		1.39	%

Non-interest bearing deposits		1,349,549								1,261,374
Other liabilities		148,999								194,752
Equity		1,460,071								1,437,869

Total liabilities and shareholders’ equity	$	14,105,136							$	14,018,525


Interest rate spread^{(5) (7)}							3.22	%							3.29	%
Net free funds/contribution⁽⁶⁾	$	1,751,685					0.18	%	$	1,711,080					0.19	%

Net interest income/Net interest margin⁽⁷⁾				$	109,114		3.40	%				$	110,028		3.48	%


⁽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 June 30, 2011 was $408,000 and for the three months ended March 31, 2011 was $414,000.

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

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

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

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

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

The net interest margin for the second quarter of 2011 was 3.40% compared to 3.48% in the first quarter of 2011. The eight basis point decrease in net interest margin in the second quarter of 2011 compared to the first quarter of 2011 resulted from a $4.0 million decrease in accretable discount recognized as interest income on the purchased life insurance premium portfolio as prepayments declined, lowering income recognized on prepayments and reducing accretion on the remaining balance of the pool as the estimated remaining life extended. Absent this decline in the second quarter the net interest margin would have been 3.52%. The impact of the decline was partially offset by continued lower repricing on interest-bearing deposits in the second quarter improved the net interest margin. The cost of interest-bearing deposits declined seven basis points in the second quarter. The Company continues to see a beneficial shift in its deposit mix as average non-interest bearing deposits comprised 12.4% of total average deposits in the second quarter of 2011 compared to 11.7% in the first quarter of 2011.

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 six months ended June 30, 2011 compared to the six months ended June 30, 2010:


	For the Six Months Ended								For the Six Months Ended
	June 30, 2011								June 30, 2010
(Dollars in thousands)	Average			Interest		Rate			Average			Interest		Rate
Liquidity management assets^{(1) (2) (7)}	$	2,608,863		$	24,552		1.90	%	$	2,485,713		$	26,459		2.15	%
Other earning assets^{(2) (3) (7)}		28,305			389		2.77			58,291			679		2.35
Loans, net of unearned income^{(2) (4) (7)}		9,854,578			253,634		5.19			9,253,693			262,829		5.73
Covered loans		372,608			15,472		8.37			105,595			2,682		5.12

Total earning assets⁽⁷⁾	$	12,864,354		$	294,047		4.61	%	$	11,903,292		$	292,649		4.96	%

Allowance for loan losses		(122,093	)							(108,019	)
Cash and due from banks		143,921								125,589
Other assets		1,173,157								1,072,194

Total assets	$	14,059,339							$	12,993,056


Interest-bearing deposits	$	9,514,337		$	46,360		0.98	%	$	9,084,587		$	64,838		1.44	%
Federal Home Loan Bank advances		418,777			7,968		3.84			423,484			8,440		4.02
Notes payable and other borrowings		302,540			5,345		3.56	��		221,812			2,901		2.64
Secured borrowings — owed to securitization investors		600,000			6,034		2.03			600,000			6,109		2.05
Subordinated notes		47,707			406		1.69			58,591			497		1.69
Junior subordinated notes		249,493			8,792		7.01			249,493			8,779		7.00

Total interest-bearing liabilities	$	11,132,854		$	74,905		1.35	%	$	10,637,967		$	91,564		1.73	%

Non-interest bearing deposits		1,305,705								895,650
Other liabilities		171,749								174,979
Equity		1,449,031								1,284,460

Total liabilities and shareholders’ equity	$	14,059,339							$	12,993,056


Interest rate spread^{(5) (7)}							3.26	%							3.23	%
Net free funds/contribution⁽⁶⁾	$	1,731,500					0.18	%	$	1,265,325					0.18	%

Net interest income/Net interest margin⁽⁷⁾				$	219,142		3.44	%				$	201,085		3.41	%


⁽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 six months ended June 30, 2011 and 2010 were $822,000 and $906,000, respectively.

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

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

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

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

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

The net interest margin for the first six months of 2011 was 3.44%, compared to 3.41% in the first six months of 2010. Absent the $6.6 million negative impact on a year-to-date basis described earlier from lower accretable discount recognized as interest income on the purchased life insurance premium portfolio, the 2011 year-to-date net interest margin would have been 3.54%. The impact of the decline was partially offset by continued lower repricing on the interest-bearing deposits over the past 12 months. Average earning assets for the first six months of 2011 increased by $961.1 million compared to the first six months of 2010. This average earning asset growth was primarily a result of the $600.9 million increase in average loans, $267.0 million of average covered loan growth from the FDIC-assisted bank acquisitions and a $93.2 million increase in liquidity management and other earning assets. Growth in the life insurance premium finance portfolio of $309.7 million and growth in the commercial and industrial portfolio of $96.8 million accounted for the bulk of the total average loan growth over the past 12 months. The average earning asset growth of $961.1 million over the past 12 months was primarily funded by a $404.6 million increase in the average balances of savings, NOW, MMA and Wealth Management deposits and an increase in the average balance of net free funds of $466.2 million.

NON-INTEREST INCOME

For the second quarter of 2011, non-interest income totaled $36.7 million, a decrease of $13.8 million, or 27%, compared to the second quarter of 2010. The decrease was primarily attributable to lower bargain purchase gains, partially offset by increases in wealth management revenues, mortgage banking revenue and fees from covered call options.

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


	Three Months Ended
	June 30,						$			%
(Dollars in thousands)	2011			2010			Change			Change
Brokerage	$	6,208		$	5,712		$	496			9
Trust and asset management		4,393			3,481			912			26

Total wealth management		10,601			9,193			1,408			15

Mortgage banking		12,817			7,985			4,832			61
Service charges on deposit accounts		3,594			3,371			223			7
Gains on available-for-sale securities		1,152			46			1,106		NM
Gain on bargain purchases		746			26,494			(25,748	)		(97	)
Trading (losses) gains		(30	)		(1,617	)		1,587			98
Other:
Fees from covered call options		2,287			169			2,118		NM
Bank Owned Life Insurance		661			418			243			58
Administrative services		781			708			73			10	��
Miscellaneous		4,043			3,669			374			10

Total Other		7,772			4,964			2,808			57


Total Non-Interest Income	$	36,652		$	50,436		$	(13,784	)		(27	)


	Six Months Ended
	June 30,					$			%
(Dollars in thousands)	2011			2010		Change			Change
Brokerage	$	12,533		$	11,266	$	1,267			11
Trust and asset management		8,304			6,594		1,710			26

Total wealth management		20,837			17,860		2,977			17

Mortgage banking		24,448			17,713		6,735			38
Service charges on deposit accounts		6,905			6,703		202			3
Gains (losses) on available-for-sale securities		1,258			438		820		NM
Gain on bargain purchases		10,584			37,388		(26,804	)		(72	)
Trading (losses) gains		(470	)		4,344		(4,814	)	NM
Other:
Fees from covered call options		4,757			459		4,298		NM
Bank Owned Life Insurance		1,537			1,041		496			48
Administrative services		1,498			1,289		209			16
Miscellaneous		6,185			5,809		376			6

Total Other		13,977			8,598		5,379			63


Total Non-Interest Income	$	77,539		$	93,044	$	(15,505	)		(17	)


NM — Not Meaningful

The significant changes in non-interest income for the quarter ended June 30, 2011 compared to the quarter ended June 30, 2010 are discussed below.

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 Great Lakes Advisors. Wealth management revenue totaled $10.6 million in the second quarter of 2011 and $9.2 million in the second quarter of 2010, an increase of 15%. 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 has 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 June 30, 2011, this revenue totaled $12.8 million, an increase of $4.8 million when compared to the second quarter of 2010. Mortgages originated and sold totaled $459 million in the second quarter of 2011 compared to $732 million in the second quarter of 2010. The increase in mortgage banking revenue in the second quarter of 2011 as compared to the second quarter of 2010 resulted primarily from estimations of fewer loss indemnification requests from investors. The Company enters into residential mortgage loan sale agreements with investors in the normal course of business. These agreements provide recourse to investors through certain representations concerning credit information, loan documentation, collateral and insurability. Investors request the Company to indemnify them against losses on certain loans or to repurchase loans which the investors believe do not comply with applicable representations. An increase in requests for loss indemnification can negatively impact mortgage banking revenue as additional recourse expense. The loss reserves established for loans expected to be repurchased is based on trends in repurchase and indemnification requests, actual loss experience, known and inherent risks in the loans that have been sold, and current economic conditions.

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


Mortgage banking revenue	Three Months Ended									Six Months Ended
	June 30,			March 31,			June 30,			June 30,			June 30,
(Dollars in thousands)	2011			2011			2010			2011			2010
Mortgage loans originated and sold	$	458,538		$	562,088		$	732,464		$	1,020,626		$	1,419,144

Mortgage loans serviced for others	$	943,542		$	943,074		$	756,451
Fair value of mortgage servicing rights (MSRs)	$	8,762		$	9,448		$	5,347
MSRs as a percentage of loans serviced		0.93	%		1.00	%		0.71	%

Gain on sales of loans and other fees	$	13,037		$	11,593		$	14,485		$	24,630		$	28,203
Mortgage servicing rights fair value adjustments		(1,136	)		141			(1,779	)		(995	)		(2,317	)
Recourse obligation on loans previously sold		916			(103	)		(4,721	)		813			(8,173	)

Total mortgage banking revenue	$	12,817		$	11,631		$	7,985		$	24,448		$	17,713


Gain on sales of loans and other fees as a percentage of loans sold		2.84	%		2.06	%		1.98	%		2.41	%		1.99	%

The Company has recognized gains on bargain purchases of $10.6 million in the first six months of 2011 related to the FDIC-assisted acquisitions of TBOC by Schaumburg and CFBC by Northbrook. In comparison, in the comparable period in 2010, the Company recognized $22.3 million and $4.2 million of bargain purchase gains related to the Wheatland and Lincoln Park acquisitions, as well as $10.9 million related to loans acquired in the Company’s acquisition of a life insurance premium finance loan portfolio.

Other non-interest income for the second quarter of 2011 totaled $7.8 million, compared to $5.0 million in the second quarter of 2010. Fees from certain covered call option transactions increased by $2.1 million in the second quarter of 2011 as compared to the same period in the prior year. Historically, compression in the net interest margin was effectively offset, as has consistently been the case, by the Company’s covered call strategy. An illustration of the past effectiveness of this strategy is shown in the Supplemental Financial Information section (see page titled “Net Interest Margin (Including Call Option Income)”).

NON-INTEREST EXPENSE

Non-interest expense for the second quarter of 2011 totaled $97.2 million and increased approximately $4.5 million, or 5%, compared to the second quarter of 2010.

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


	Three Months Ended
	June 30,				$			%
(Dollars in thousands)	2011		2010		Change			Change
Salaries and employee benefits:
Salaries	$	32,008	$	28,714		3,294			11
Commissions and bonus		10,760		12,967		(2,207	)		(17	)
Benefits		10,311		8,968		1,343			15

Total salaries and employee benefits		53,079		50,649		2,430			5
Equipment		4,409		4,046		363			9
Occupancy, net		6,772		6,033		739			12
Data processing		3,147		3,669		(522	)		(14	)
Advertising and marketing		1,440		1,470		(30	)		(2	)
Professional fees		4,533		3,957		576			15
Amortization of other intangible assets		704		674		30			4
FDIC insurance		3,281		5,005		(1,724	)		(34	)
OREO expenses, net		6,577		5,843		734			13
Other:
Commissions — 3rd party brokers		991		1,097		(106	)		(10	)
Postage		1,170		1,229		(59	)		(5	)
Stationery and supplies		888		761		127			17
Miscellaneous		10,215		8,230		1,985			24

Total other		13,264		11,317		1,947			17


Total Non-Interest Expense	$	97,206	$	92,663	$	4,543			5


	Six Months Ended
	June 30,				$			%
(Dollars in thousands)	2011		2010		Change			Change
Salaries and employee benefits:
Salaries	$	65,143	$	57,797		7,346			13
Commissions and bonus		21,474		22,698		(1,224	)		(5	)
Benefits		22,561		19,226		3,335			17

Total salaries and employee benefits		109,178		99,721		9,457			9
Equipment		8,673		7,941		732			9
Occupancy, net		13,277		12,263		1,014			8
Data processing		6,670		7,076		(406	)		(6	)
Advertising and marketing		3,054		2,784		270			10
Professional fees		8,079		7,064		1,015			14
Amortization of other intangible assets		1,393		1,319		74			6
FDIC insurance		7,799		8,814		(1,015	)		(12	)
OREO expenses, net		12,385		7,181		5,204			72
Other:
Commissions — 3rd party brokers		2,021		2,058		(37	)		(2	)
Postage		2,248		2,339		(91	)		(4	)
Stationery and supplies		1,728		1,493		235			16
Miscellaneous		18,810		16,548		2,262			14

Total other		24,807		22,438		2,369			11


Total Non-Interest Expense	$	195,315	$	176,601	$	18,714			11

The significant changes in non-interest expense for the quarter ended June 30, 2011 compared to the quarter ended June 30, 2010 are discussed below.

Salaries and employee benefits comprised 55% of total non-interest expense in the second quarter of 2011 and 55% in the second quarter of 2010. Salaries and employee benefits expense increased $2.4 million, or 5%, in the second quarter of 2011 compared to the second quarter of 2010 primarily as a result of a $3.3 million increase in salaries caused by the addition of employees from the FDIC-assisted transactions and larger staffing as the Company grows and a $1.3 million increase from employee benefits (primarily health plan and payroll taxes related), partially offset by a $2.2 million decrease in bonus and commissions attributable to variable pay based revenue.

Occupancy expense includes depreciation on premises, real estate taxes, utilities and maintenance of premises, as well as net rent expense for leased premises. Occupancy expense for the second quarter of 2011 was $6.8 million, an increase of $739,000, or 12%, compared to the same period in 2010. The increase is primarily the result of rent expense on additional leased premises and depreciation on owned locations which were obtained in the FDIC-assisted acquisitions.

Data processing expenses decreased $522,000 for the second quarter of 2011 as compared to the second quarter of 2010. The decrease in the data processing expenses is related to more favorable terms from third-party providers.

Professional fees include legal, audit and tax fees, external loan review costs and normal regulatory exam assessments. Professional fees for the second quarter of 2011 were $4.5 million, an increase of $576,000, or 15%, compared to the same period in 2010. These increases are primarily a result of increased legal costs related to non-performing assets and recent bank acquisitions.

FDIC insurance expense for the second quarter of 2011 was $3.3 million, a decrease of $1.7 million, or 34%, compared to the same period in 2010. Effective April 1, 2011, standards applied in FDIC assessments set forth in the Federal Deposit Insurance Act were revised by the Dodd-Frank Wall Street Reform and Consumer Protection Act. These revisions modified definitions of a company’s insurance assessment base and assessment rates which led to the Company’s decreased FDIC expense in the second quarter of 2011.

OREO expenses include all costs related to obtaining, maintaining and selling of other real estate owned properties. This expense totaled $6.6 million in the second quarter of 2011, an increase of $734,000 compared to $5.8 million in the second quarter of 2010. The increase in OREO expenses primarily related to higher valuation adjustments of properties held in OREO in the second quarter of 2011 as compared to second quarter of 2010.

ASSET QUALITY

Allowance for Credit Losses, excluding covered loans


	Three Months Ended						Six Months Ended
	June 30,						June 30,
(Dollars in thousands)	2011			2010			2011			2010
Allowance for loan losses at beginning of period	$	115,049		$	102,397		$	113,903		$	98,277
Provision for credit losses		28,666			41,297			53,042			70,342
Other adjustments		—			—			—			1,943
Reclassification (to)/from allowance for unfunded lending-related commitments		(317	)		785			1,799			684

Charge-offs:
Commercial		7,583			4,781			16,723			9,456
Commercial real estate		20,691			12,311			34,033			32,554
Home equity		1,300			3,089			2,073			3,370
Residential real estate		282			310			1,557			717
Premium finance receivables — commercial		1,893			17,747			3,400			19,680
Premium finance receivables — life insurance		214			—			244			—
Indirect consumer		44			256			164			529
Consumer and other		266			109			426			288

Total charge-offs		32,273			38,603			58,620			66,594


Recoveries:									��
Commercial		301			143			567			586
Commercial real estate		463			218			801			660
Home equity		19			6			27			13
Residential real estate		3			2			5			7
Premium finance receivables — commercial		5,375			188			5,643			417
Premium finance receivables — life insurance		12			—			12			—
Indirect consumer		42			81			108			132
Consumer and other		22			33			75			80

Total recoveries		6,237			671			7,238			1,895

Net charge-offs		(26,036	)		(37,932	)		(51,382	)		(64,699	)

Allowance for loan losses at period end	$	117,362		$	106,547		$	117,362		$	106,547

Allowance for unfunded lending-related commitments at period end		2,335			2,169			2,335			2,169


Allowance for credit losses at period end	$	119,697		$	108,716		$	119,697		$	108,716


Annualized net charge-offs by category as a percentage of its own respective category’s average:
Commercial		1.45	%		1.04			1.65	%		1.03	%
Commercial real estate		2.40			1.45			1.99			1.93
Home equity		0.58			1.34			0.46			0.73
Residential real estate		0.25			0.23			0.62			0.28
Premium finance receivables — commercial		(0.99	)		5.46			(0.33	)		3.03
Premium finance receivables — life insurance		0.05			—			0.03			—
Indirect consumer		0.02			0.92			0.21			0.96
Consumer and other		0.98			0.27			0.69			0.37

Total loans, net of unearned income, excluding covered loans		1.06	%		1.63			1.05	%		1.41	%

Net charge-offs as a percentage of the provision for credit losses		90.83	%		91.85			96.87	%		91.98	%

Loans at period-end							$	9,925,077		$	9,324,163
Allowance for loan losses as a percentage of loans at period end								1.18	%		1.14	%
Allowance for credit losses as a percentage of loans at period end								1.21	%		1.17	%

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

The provision for credit losses, excluding the provision for covered loan losses, totaled $28.7 million for the second quarter of 2011, $24.4 million in the first quarter of 2011 and $41.3 million for the second quarter of 2010. For the quarter ended June 30, 2011, net charge-offs, excluding covered loans, totaled $26.0 million compared to $25.3 million in the first quarter of 2011 and $37.9 million recorded in the second quarter of 2010. On a ratio basis, annualized net charge-offs as a percentage of average loans, excluding covered loans, were 1.06% in the second quarter of 2011, 1.04% in the first quarter of 2011, and 1.63% in the second quarter of 2010. The second quarter of 2011 amounts recorded for both net charge-offs and provision for credit losses reflect a continuation of the Company’s commitment to maintain a low level of non-performing assets and an appropriate level of reserves.

Management believes the allowance for credit losses is appropriate to provide for inherent losses in the portfolio. There can be no assurances however, that future losses will not exceed the amounts provided for, thereby affecting future results of operations. The amount of future additions to the allowance for credit losses will be dependent upon management’s assessment of the appropriateness of the allowance based on its evaluation of economic conditions, changes in real estate values, interest rates, the regulatory environment, the level of past-due and non-performing loans, and other factors. The increase in the allowance for credit losses from the end of the prior quarter reflects the continued changes in real estate values on certain types of credits, specifically credits with residential development collateral valuation exposure.

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

The table below shows the aging of the Company’s loan portfolio, excluding covered loans, at June 30, 2011:

90+ days

60-89

30-59

As of June 30, 2011

and still

days past

(Dollars in thousands)

Nonaccrual

accruing

due

Current

Total Loans

Loan Balances:

Commercial

Commercial and industrial

22,289

—

7,164

23,754

1,309,455

1,362,662

Franchise

1,792

—

112,342

114,134

Mortgage warehouse lines of credit

—

68,477

Community Advantage — homeowners association

—

73,929

Aircraft

—

21,231

Asset-based lending

2,087

—

2,415

361,594

366,096

Municipal

—

63,296

Leases

—

763

61,772

62,535

Other

—

Total commercial

26,168

—

7,164

26,932

2,072,172

2,132,436

Commercial real-estate:

Residential construction

3,011

—

938

5,245

81,561

90,755

Commercial construction

2,453

—

7,579

7,075

120,540

137,647

Land

33,980

—

10,281

8,076

160,597

212,934

Office

17,503

—

1,648

3,846

509,385

532,382

Industrial

2,470

—

2,689

2,480

506,895

514,534

Retail

8,164

—

3,778

14,806

498,040

524,788

Multi-family

4,947

—

4,628

3,836

302,740

316,151

Mixed use and other

17,265

—

9,350

4,201

1,014,661

1,045,477

Total commercial real-estate

89,793

—

40,891

49,565

3,194,419

3,374,668

Home equity

15,853

—

1,502

4,081

859,266

880,702

Residential real estate

7,379

—

1,272

949

319,781

329,381

Premium finance receivables — commercial

10,309

4,446

5,089

7,897

1,401,695

1,429,436

Premium finance receivables — life insurance

670

324

4,873

3,254

1,610,547

1,619,668

Indirect consumer

284

531

56,716

57,718

Consumer and other

757

—

123

418

99,770

101,068

Total loans, net of unearned income, excluding covered loans

151,018

5,054

61,012

93,627

9,614,366

9,925,077

Aging as a % of Loan Balance:

Commercial

Commercial and industrial

1.6

—

0.5

1.7

96.2

100.0

Franchise

1.6

—

98.4

100.0

Mortgage warehouse lines of credit

—

100.0

Community Advantage — homeowners association

—

100.0

Aircraft

—

100.0

Asset-based lending

0.6

—

0.7

98.7

100.0

Municipal

—

100.0

Leases

—

1.2

98.8

100.0

Other

—

100.0

Total commercial

1.2

—

0.3

1.3

97.2

100.0

Commercial real-estate:

Residential construction

3.3

—

1.0

5.8

89.9

100.0

Commercial construction

1.8

—

5.5

5.1

87.6

100.0

Land

16.0

—

4.8

3.8

75.4

100.0

Office

3.3

—

0.3

0.7

95.7

100.0

Industrial

0.5

—

0.5

98.5

100.0

Retail

1.6

—

0.7

2.8

94.9

100.0

Multi-family

1.6

—

1.5

1.2

95.7

100.0

Mixed use and other

1.7

—

0.9

0.4

97.0

100.0

Total commercial real-estate

2.7

—

1.2

1.5

94.6

100.0

Home equity

1.8

0.2

0.5

97.5

100.0

Residential real estate

2.2

—

0.4

0.3

97.1

100.0

Premium finance receivables — commercial

0.7

0.3

0.4

0.6

98.0

100.0

Premium finance receivables — life insurance

—

0.3

0.2

99.5

100.0

Indirect consumer

0.2

0.5

0.2

0.9

98.2

100.0

Consumer and other

0.7

—

0.1

0.4

98.8

100.0

Total loans, net of unearned income, excluding covered loans

1.5

0.1

0.6

0.9

96.9

100.0

As of June 30, 2011, $61.0 million of all loans, excluding covered loans, or 0.6%, were 60 to 89 days past due and $93.6 million, or 0.9%, were 30 to 59 days (or one payment) past due. As of March 31, 2011, $41.2 million of all loans, excluding covered loans, or 0.4%, were 60 to 89 days past due and $103.5 million, or 1.1%, were 30 to 59 days (or one payment) past due. 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 June 30, 2011 that are current with regard to the contractual terms of the loan agreement represent 97.5% of the total home equity portfolio. Residential real estate loans at June 30, 2011 that are current with regards to the contractual terms of the loan agreements comprise 97.1% of total residential real estate loans outstanding.

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


				90+ days			60-89			30-59
As of March 31, 2011				and still			days past			days past
(Dollars in thousands)	Nonaccrual			accruing			due			due			Current			Total Loans
Loan Balances:
Commercial
Commercial and industrial	$	24,277		$	150		$	3,233		$	9,201		$	1,240,796		$	1,277,657
Franchise		1,792			—			—			—			112,584			114,376
Mortgage warehouse lines of credit		—			—			—			—			33,482			33,482
Community Advantage — homeowners association		—			—			—			—			75,948			75,948
Aircraft		74			—			—			—			22,243			22,317
Asset-based lending		—			—			216			2,355			299,328			301,899
Municipal		—			—			—			—			60,376			60,376
Leases		14			—			—			88			51,404			51,506
Other		—			—			—			—			—			—

Total commercial		26,157			150			3,449			11,644			1,896,161			1,937,561

Commercial real-estate:
Residential construction		7,891			—			1,057			3,587			78,832			91,367
Commercial construction		1,396			692			2,469			680			116,311			121,548
Land		26,974			—			7,366			12,455			183,419			230,214
Office		17,945			—			1,705			3,059			534,558			557,267
Industrial		1,251			524			1,672			8,499			483,690			495,636
Retail		12,824			—			4,994			5,810			499,486			523,114
Multi-family		5,968			—			1,107			5,059			281,729			293,863
Mixed use and other		19,752			781			7,187			19,835			995,998			1,043,553

Total commercial real-estate		94,001			1,997			27,557			58,984			3,174,023			3,356,562

Home equity		11,184			—			3,366			6,603			870,179			891,332
Residential real estate		4,909			—			918			5,174			333,908			344,909
Premium finance receivables — commercial		9,550			6,319			4,433			14,428			1,303,121			1,337,851
Premium finance receivables — life insurance		342			—			1,130			5,580			1,532,469			1,539,521
Indirect consumer		320			310			182			657			50,910			52,379
Consumer and other		147			1			185			394			100,960			101,687

Total loans, net of unearned income, excluding covered loans	$	146,610		$	8,777		$	41,220		$	103,464		$	9,261,731		$	9,561,802


Aging as a % of Loan Balance:
Commercial
Commercial and industrial		1.9	%		—	%		0.3	%		0.7	%		97.1	%		100.0	%
Franchise		1.6			—			—			—			98.4			100.0
Mortgage warehouse lines of credit		—			—			—			—			100.0			100.0
Community Advantage — homeowners association		—			—			—			—			100.0			100.0
Aircraft		0.3			—			—			—			99.7			100.0
Asset-based lending		—			—			0.1			0.8			99.1			100.0
Municipal		—			—			—			—			100.0			100.0
Leases		—			—			—			0.2			99.8			100.0
Other		—			—			—			—			—			—

Total commercial		1.3			—			0.2			0.6			97.9			100.0

Commercial real-estate:
Residential construction		8.6			—			1.2			3.9			86.3			100.0
Commercial construction		1.1			0.6			2.0			0.6			95.7			100.0
Land		11.7			—			3.2			5.4			79.7			100.0
Office		3.2			—			0.3			0.5			96.0			100.0
Industrial		0.3			0.1			0.3			1.7			97.6			100.0
Retail		2.5			—			1.0			1.1			95.4			100.0
Multi-family		2.0			—			0.4			1.7			95.9			100.0
Mixed use and other		1.9			0.1			0.7			1.9			95.4			100.0

Total commercial real-estate		2.8			0.1			0.8			1.8			94.5			100.0

Home equity		1.3			—			0.4			0.7			97.6			100.0
Residential real estate		1.4			—			0.3			1.5			96.8			100.0
Premium finance receivables — commercial		0.7			0.5			0.3			1.1			97.4			100.0
Premium finance receivables — life insurance		0.0			—			0.1			0.4			99.5			100.0
Indirect consumer		0.6			0.6			0.3			1.3			97.2			100.0
Consumer and other		0.1			0.0			0.2			0.4			99.3			100.0

Total loans, net of unearned income, excluding covered loans		1.5	%		0.1	%		0.4	%		1.1	%		96.9	%		100.0	%

Non-performing Assets, excluding covered assets

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


	June 30,			March 31,			June 30,
(Dollars in thousands)	2011			2011			2010
Loans past due greater than 90 days and still accruing:
Commercial	$	—		$	150		$	99
Commercial real-estate		—			1,997			2,248
Home equity		—			—			—
Residential real-estate		—			—			—
Premium finance receivables — commercial		4,446			6,319			6,350
Premium finance receivables — life insurance		324			—			1,923
Indirect consumer		284			310			579
Consumer and other		—			1			3

Total loans past due greater than 90 days and still accruing		5,054			8,777			11,202


Non-accrual loans:
Commercial		26,168			26,157			17,741
Commercial real-estate		89,793			94,001			82,984
Home equity		15,853			11,184			7,149
Residential real-estate		7,379			4,909			4,436
Premium finance receivables — commercial		10,309			9,550			11,389
Premium finance receivables — life insurance		670			342			—
Indirect consumer		89			320			438
Consumer and other		757			147			62

Total non-accrual loans		151,018			146,610			124,199


Total non-performing loans:
Commercial		26,168			26,307			17,840
Commercial real-estate		89,793			95,998			85,232
Home equity		15,853			11,184			7,149
Residential real-estate		7,379			4,909			4,436
Premium finance receivables — commercial		14,755			15,869			17,739
Premium finance receivables — life insurance		994			342			1,923
Indirect consumer		373			630			1,017
Consumer and other		757			148			65

Total non-performing loans	$	156,072		$	155,387		$	135,401
Other real estate owned		82,772			85,290			86,420

Total non-performing assets	$	238,844		$	240,677		$	221,821


Total non-performing loans by category as a percent of its own respective category’s period-end balance:
Commercial		1.23	%		1.36	%		0.98	%
Commercial real-estate		2.66			2.86			2.55
Home equity		1.80			1.25			0.78
Residential real-estate		2.24			1.42			1.33
Premium finance receivables — commercial		1.03			1.19			1.32
Premium finance receivables — life insurance		0.06			0.02			0.14
Indirect consumer		0.65			1.20			1.47
Consumer and other		0.75			0.15			0.07

Total loans, net of unearned income		1.57	%		1.63	%		1.45	%


Total non-performing assets as a percentage of total assets		1.63	%		1.71	%		1.62	%

Allowance for loan losses as a percentage total non-performing loans		75.20	%		74.04	%		78.69	%

Non-performing Commercial and Commercial Real Estate

The commercial non-performing loan category totaled $26.2 million as of June 30, 2011 compared to $26.3 million as of March 31, 2011 and $17.8 million as of June 30, 2010. The commercial real estate non-performing loan category totaled $89.8 million as of June 30, 2011 compared to $96.0 million as of March 31, 2011 and $85.2 million as of June 30, 2010.

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

Non-performing Residential Real Estate and Home Equity

Non-performing home equity and residential real estate loans totaled $23.2 million as of June 30, 2011. The balance increased $11.6 million from June 30, 2010 and $7.1 million from March 31, 2011. The June 30, 2011 non-performing balance is comprised of $7.4 million of residential real estate (28 individual credits) and $15.8 million of home equity loans (38 individual credits). On average, this is approximately four non-performing residential real estate loans and home equity loans per chartered bank within the Company. The Company believes control and collection of these loans is very manageable. At this time, management believes reserves are adequate to absorb inherent losses that may occur upon the ultimate resolution of these credits.

Non-performing Commercial Premium Finance Receivables

The table below presents the level of non-performing property and casualty premium finance receivables as of June 30, 2011 and 2010, and the amount of net charge-offs for the quarters then ended.


	June 30,			June 30,
(Dollars in thousands)	2011			2010
Non-performing premium finance receivables — commercial	$	14,755		$	17,739
— as a percent of premium finance receivables — commercial outstanding		1.03	%		1.32	%

Net (recoveries) charge-offs of premium finance receivables — commercial	$	(3,482	)	$	17,559
— annualized as a percent of average premium finance receivables — commercial		(0.99)	%		5.46	%

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, 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 credit losses by $15.7 million. Excluding the effect of this fraud, net charge-offs of commercial premium finance receivables would have been $1.8 million for the second quarter of 2010, which is 0.56% of average commercial premium finance receivables on an annualized basis. In the second quarter of 2011, the Company recovered $5.0 million from insurance coverage of the $15.7 million fraud loss recorded in the second quarter of 2010. The Company continues to pursue additional recoveries, but does not anticipate any significant additional recoveries. Absent this recovery, net charge-offs of commercial premium finance receivables would have been $1.5 million or 0.45% of average commercial premium finance receivables in the second quarter of 2011.

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

Nonperforming Loans Rollforward

The table below presents a summary of the changes in the balance of non-performing loans, excluding covered loans, for the three and six month periods ending June 30, 2011 and 2010:


	Three Months Ended						Six Months Ended
	June 30,			June 30,			June 30,			June 30,
(Dollars in thousands)	2011			2010			2011			2010
Balance at beginning of period	$	155,387		$	140,960		$	142,132		$	131,804
Additions, net		45,742			41,007			101,910			86,810
Return to performing status		(2,193	)		(738	)		(3,368	)		(3,825	)
Payments received		(12,553	)		(8,213	)		(14,142	)		(9,513	)
Transfer to OREO		(12,926	)		(13,477	)		(35,351	)		(40,723	)
Charge-offs		(17,611	)		(16,481	)		(31,711	)		(28,680	)
Net change for niche loans⁽¹⁾		226			(7,657	)		(3,398	)		(472	)

Balance at end of period	$	156,072		$	135,401		$	156,072		$	135,401


⁽¹⁾		This includes activity for premium finance receivables 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:


	June 30,		March 31,		June 30,
(Dollars in thousands)	2011		2011		2010
Accruing:
Commercial	$	12,396	$	12,620	$	5,110
Commercial real estate		72,363		55,202		46,052
Residential real estate		1,079		1,560		2,591

Total accrual	$	85,838	$	69,382	$	53,753


Non-accrual:⁽¹⁾
Commercial	$	3,587	$	5,582	$	3,865
Commercial real estate		12,308		21,174		6,827
Residential real estate		1,311		431		238

Total non-accrual	$	17,206	$	27,187	$	10,930

				��
Total restructured loans:
Commercial	$	15,983	$	18,202	$	8,975
Commercial real estate		84,671		76,376		52,879
Residential real estate		2,390		1,991		2,829

Total restructured loans	$	103,044	$	96,569	$	64,683


⁽¹⁾		Included in total non-performing loans.

At June 30, 2011, the Company had $103.0 million in loans with modified terms. The $103.0 million in modified loans represents 126 credit relationships in which economic concessions were granted to certain borrowers to better align the terms of their loans with their current ability to pay. These actions were taken on a case-by-case basis working with these borrowers to find a concession that would assist them in retaining their businesses or their homes and attempt to keep these loans in an accruing status for the Company.

Subsequent to its restructuring, any restructured loan with a below market rate concession will remain classified by the Company as a restructured loan for its duration. All restructured loans were reviewed for collateral impairment at June 30, 2011 and approximately $4.7 million of collateral impairment was present on restructured loans classified as non-

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

Other Real Estate Owned

The table below presents a summary of other real estate owned, excluding covered other real estate owned, as of June 30, 2011 and shows the activity for the respective period and the balance for each property type:


	Three Months Ended
	June 30,			March 31,			June 30,
(Dollars in thousands)	2011			2011			2010
Balance at beginning of period	$	85,290		$	71,214		$	89,009
Disposals/resolved		(8,253	)		(11,515	)		(15,201	)
Transfers in at fair value, less costs to sell		10,190			28,865			16,348
Fair value adjustments		(4,455	)		(3,274	)		(3,736	)

Balance at end of period	$	82,772		$	85,290		$	86,420


	Period End
	June 30,		March 31,		June 30,
Balance by Property Type	2011		2011		2010
Residential real estate	$	7,196	$	10,570	$	5,457
Residential real estate development		16,591		17,808		27,161
Commercial real estate		58,985		56,912		53,802

Total	$	82,772	$	85,290	$	86,420

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

Covered Assets


	June 30,			March 31,			June 30,
(Dollars in thousands)	2011			2011			2010
Period End Balances:
Loans	$	408,669		$	431,299		$	—
Other real estate owned		31,053			36,295			—
FDIC Indemnification asset		110,049			124,785			—

Total covered assets	$	549,771		$	592,379		$	—


Allowance for Covered Loan Losses Rollforward:
Balance at beginning of period	$	4,844		$	—		$	—
Provision for covered loan losses before benefit attributable to FDIC loss share agreements		2,599			4,844			—
Benefit attributable to FDIC loss share agreements		(2,078	)		(3,876	)		—

Net provision for covered loan losses		521			968			—
Increase in FDIC indemnification asset		2,076			3,876			—
Loans charged-off		—			—			—
Recoveries of loans charged-off		2			—			—

Net charge-offs		2			—			—

Balance at end of period	$	7,443		$	4,844		$	—

In conjunction with FDIC-assisted transactions, the Company entered into loss share agreements with the FDIC. These agreements cover realized losses on loans, foreclosed real estate and certain other assets. These loss share assets are measured separately from the loan portfolios because they are not contractually embedded in the loans and are not transferable with the loans should the Company choose to dispose of them. Fair values at the acquisition dates were estimated based on projected cash flows available for loss-share based on the credit adjustments estimated for each loan pool and the loss share percentages. The loss share assets are also separately measured from the related loans and foreclosed real estate and recorded separately on the Consolidated Statements of Condition. Subsequent to the acquisition date, reimbursements received from the FDIC for actual incurred losses will reduce the loss share assets. Additional expected losses, to the extent such expected losses result in the recognition of an allowance for loan losses, will increase the loss share assets. The allowance for loan losses for loans acquired in FDIC-assisted transactions is determined without giving consideration to the amounts recoverable through loss share agreements (since the loss share agreements are separately accounted for and thus presented “gross” on the balance sheet). On the Consolidated Statements of Income, the provision for credit losses is reported net of changes in the amount recoverable under the loss share agreements. Reductions to expected losses, to the extent such reductions to expected losses are the result of an improvement to the actual or expected cash flows from the covered assets, will reduce the loss share assets. The increases in cash flows for the purchased loans are recognized as interest income prospectively.

The following table presents a summary of the discount components for the life insurance premium finance portfolio purchase as of June 30, 2011 and shows the changes in the balances from June 30, 2010.

Purchased Loan Portfolio
Summary of Acquisition


				Credit
				discounts -
				non-
	Accretable			accretable
(Dollars in thousands)	discounts			discounts
Balances at June 30, 2010	$	51,779		$	28,217
- Accretion (effective yield method)		(5,139	)		—
- Accretion recognized as accounts prepay		(1,672	)		(1,680	)
- Reclassification from accretable to nonaccretable		(52	)		52
- Discount used for loans written off		—			(190	)

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

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

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

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

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

- Accretion (effective yield method)		(3,629	)		—
- Accretion recognized as accounts prepay		(696	)		(797	)
- Reclassification from nonaccretable to accretable		3,673			(3,673	)
- Recovery of discount used for loans written off		—			100
- Discount used for loans written off		—			(319	)

Balances at June 30, 2011	$	24,891		$	17,458

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, Schaumburg Bank & Trust, N.A., Village Bank & Trust in Arlington Heights, Beverly Bank & Trust Company in Chicago, Wheaton Bank & Trust Company, State Bank of The Lakes in Antioch, Old Plank Trail Community Bank, N.A. in New Lenox, St. Charles Bank & Trust Company and Town Bank in Hartland, Wisconsin. The banks also operate facilities in Illinois in Algonquin, Bloomingdale, Buffalo Grove, Cary, Chicago, Clarendon Hills, Deerfield, Downers Grove, Frankfort, Geneva, Glencoe, Glen Ellyn, Gurnee, Grayslake, Highland Park, Highwood, Hoffman Estates, Island Lake, Lake Bluff, Lake Villa, Lincoln Park, Lindenhurst, McHenry, Mokena, Mount Prospect, Mundelein, Naperville, North Chicago, Northfield, Palatine, Prospect Heights, Ravenswood, Ravinia, Riverside, Rogers Park, Roselle, Sauganash, Skokie, Spring Grove, Vernon Hills, Wauconda, Western Springs, Willowbrook, Winnetka and Wood Dale and in Delafield, Elm Grove, Madison, Wales, Wisconsin.

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

FORWARD-LOOKING STATEMENTS

This document contains forward-looking statements within the meaning of federal securities laws. Forward-looking information can be identified through the use of words such as “intend,” “plan,” “project,” “expect,” “anticipate,” “believe,” “estimate,” “contemplate,” “possible,” “point,” “will,” “may,” “should,” “would” and “could.” Forward-looking statements and information are not historical facts, are premised on many factors and assumptions, and represent only management’s expectations, estimates and projections regarding future events. Similarly, these statements are not guarantees of future performance and involve certain risks and uncertainties that are difficult to predict, which may include, but are not limited to, those listed below and the Risk Factors discussed under Item 1A of the Company’s 2010 Annual Report on Form 10-K and in any of the Company’s subsequent SEC filings. The Company intends such forward-looking statements to be covered by the safe harbor provisions for forward-looking statements contained in the Private Securities Litigation Reform Act of 1995, and is including this statement for purposes of invoking these safe harbor provisions. Such forward-looking statements may be deemed to include, among other things, statements relating to the Company’s future financial performance, the performance of its loan portfolio, the expected amount of future credit reserves and charge-offs, delinquency trends, growth plans, regulatory developments, securities that the Company may offer from time to time, and management’s long-term performance goals, as well as statements relating to the anticipated effects on financial condition and results of operations from expected developments or events, the Company’s business and growth strategies, including future acquisitions of banks, specialty finance or wealth management businesses, internal growth and plans to form additional de novo banks or branch offices. Actual results could differ materially from those addressed in the forward-looking statements as a result of numerous factors, including the following:

•

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

•

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

•

effects of the potential delay or failure of the U.S. federal government to pay its debts as they become due or

			make payments in the ordinary course;

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

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

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

	•		legislative or regulatory changes, particularly changes in regulation of financial services companies and/or the products and services offered by financial services companies, including those resulting from the Dodd-Frank Act;

	•		restrictions upon our ability to market our products to consumers and limitations on our ability to profitably operate our mortgage business resulting from the Dodd-Frank Act;

	•		increased costs of compliance, heightened regulatory capital requirements and other risks associated with changes in regulation and the current regulatory environment, including the Dodd-Frank Act;

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

	•		significant litigation involving the Company; and

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

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

CONFERENCE CALL, WEB CAST AND REPLAY

The Company will hold a conference call at 1:00 p.m. (ET) Wednesday, July 27, 2011 regarding second quarter 2011 results. Individuals interested in listening should call (877) 363-5049 and enter Conference ID #83467278. 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 Relations, Investor News and Events, Presentations & Conference Calls. The text of the second quarter 2011 earnings press release will be available on the home page of the Company’s website at (http://www.wintrust.com) and at the Investor News and Events, Press Releases link on its website.

WINTRUST FINANCIAL CORPORATION

Supplemental Financial Information

5 Quarter Trends

WINTRUST FINANCIAL CORPORATION — Supplemental Financial Information
Selected Financial Highlights — 5 Quarter Trends
(Dollars in thousands, except per share data)


	Three Months Ended
	June 30,			March 31,			December 31,			September 30,			June 30,
	2011			2011			2010			2010			2010
Selected Financial Condition Data (at end of period):
Total assets	$	14,615,897		$	14,094,294		$	13,980,156		$	14,100,368		$	13,708,560
Total loans, excluding covered loans		9,925,077			9,561,802			9,599,886			9,461,155			9,324,163
Total deposits		11,259,260			10,915,169			10,803,673			10,962,239			10,624,742
Junior subordinated debentures		249,493			249,493			249,493			249,493			249,493
Total shareholders’ equity		1,473,386			1,453,253			1,436,549			1,398,912			1,384,736

Selected Statements of Income Data:
Net interest income		108,706			109,614			112,677			102,980			104,314
Net revenue⁽¹⁾		145,358			150,501			157,138			157,636			154,750
Core pre-tax earnings⁽²⁾		52,751			49,544			59,008			48,236			47,912
Net income		11,750			16,402			14,205			20,098			13,009
Net income (loss) per common share — Basic	$	0.31		$	0.44		$	(0.06	)	$	0.49		$	0.26
Net income (loss) per common share — Diluted	$	0.25		$	0.36		$	(0.06	)	$	0.47		$	0.25

Selected Financial Ratios and Other Data:
Performance Ratios:
Net interest margin⁽²⁾		3.40	%		3.48	%		3.46	%		3.22	%		3.43	%
Non-interest income to average assets		1.04	%		1.18	%		1.24	%		1.56	%		1.51	%
Non-interest expense to average assets		2.76	%		2.84	%		2.97	%		2.85	%		2.78	%
Net overhead ratio⁽³⁾		1.72	%		1.66	%		1.73	%		1.28	%		1.26	%
Efficiency ratio^{(2) (4)}		67.22	%		65.05	%		67.48	%		67.01	%		59.72	%
Return on average assets		0.33	%		0.47	%		0.40	%		0.57	%		0.39	%
Return on average common equity		3.05	%		4.49	%		(0.66)	%		5.44	%		2.98	%
Average total assets	$	14,105,136		$	14,018,525		$	14,199,351		$	14,015,757		$	13,390,537
Average total shareholders’ equity		1,460,071			1,437,869			1,442,754			1,391,507			1,371,689
Average loans to average deposits ratio		90.9	%		91.2	%		89.0	%		88.7	%		91.0	%
Average loans to average deposits ratio (including covered loans)		94.8			94.2			92.1			91.7			93.0

*Common Share Data at end of period:*
Market price per common share	$	32.18		$	36.75		$	33.03		$	32.41		$	33.34
Book value per common share⁽²⁾	$	33.63		$	33.70		$	32.73		$	35.70		$	35.33
Tangible common book value per share⁽²⁾	$	26.67		$	26.65		$	25.80		$	26.34		$	25.96
Common shares outstanding		34,988,125			34,947,251			34,864,068			31,143,740			31,084,298
Other Data at end of period:⁽⁹⁾
Leverage Ratio⁽⁵⁾		10.3	%		10.3	%		10.1	%		10.0	%		10.2	%
Tier 1 Capital to risk-weighted assets⁽⁵⁾		12.3	%		12.7	%		12.5	%		12.7	%		13.0	%
Total capital to risk-weighted assets⁽⁵⁾		13.5	%		14.1	%		13.8	%		14.1	%		14.3	%
Tangible Common Equity ratio (TCE)^{(2) (8)}		7.9	%		8.0	%		8.0	%		5.9	%		6.0	%
Allowance for credit losses⁽⁶⁾	$	119,697		$	117,067		$	118,037		$	112,807		$	108,716
Credit discounts on purchased premium finance receivables — life insurance⁽⁷⁾		17,458			22,147			23,227			26,399			28,217
Non-performing loans		156,072			155,387			142,132			134,323			135,401
Allowance for credit losses to total loans⁽⁶⁾		1.21	%		1.22	%		1.23	%		1.19	%		1.17	%
Non-performing loans to total loans		1.57	%		1.63	%		1.48	%		1.42	%		1.45	%
Number of:
Bank subsidiaries		15			15			15			15			15
Non-bank subsidiaries		7			8			8			8			8
Banking offices		88			88			86			85			85


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

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

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

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

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

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

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

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

⁽⁹⁾		Asset quality ratios exclude covered loans.

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


	(Unaudited)		��	(Unaudited)						(Unaudited)			(Unaudited)
	June 30,			March 31,			December 31,			September 30,			June 30,
(In thousands)	2011			2011			2010			2010			2010

Assets
Cash and due from banks	$	140,434		$	140,919		$	153,690		$	155,067		$	123,712
Federal funds sold and securities purchased under resale agreements		43,634			33,575			18,890			88,913			28,664
Interest-bearing deposits with other banks		990,308			946,193			865,575			1,224,584			1,110,123
Available-for-sale securities, at fair value		1,456,426			1,710,321			1,496,302			1,324,179			1,418,035
Trading account securities		509			2,229			4,879			4,935			38,261
Federal Home Loan Bank and Federal Reserve Bank stock, at cost		86,761			85,144			82,407			80,445			79,300
Brokerage customer receivables		29,736			25,361			24,549			25,442			24,291
Mortgage loans held-for-sale, at fair value		133,083			92,151			356,662			307,231			222,703
Mortgage loans held-for-sale, at lower of cost or market		5,881			2,335			14,785			13,209			15,278
Loans, net of unearned income, excluding covered loans		9,925,077			9,561,802			9,599,886			9,461,155			9,324,163
Covered loans		408,669			431,299			334,353			353,840			275,563

Total loans		10,333,746			9,993,101			9,934,239			9,814,995			9,599,726
Less: Allowance for loan losses		117,362			115,049			113,903			110,432			106,547
Less: Allowance for covered loan losses		7,443			4,844			—			—			—

Net loans		10,208,941			9,873,208			9,820,336			9,704,563			9,493,179
Premises and equipment, net		403,577			369,785			363,696			353,445			346,806
FDIC indemnification asset		110,049			124,785			118,182			161,640			114,102
Accrued interest receivable and other assets		389,634			394,292			366,438			365,496			374,172
Trade date securities receivable		322,091			—			—			—			28,634
Goodwill		283,301			281,940			281,190			278,025			278,025
Other intangible assets		11,532			12,056			12,575			13,194			13,275

Total assets	$	14,615,897		$	14,094,294		$	13,980,156		$	14,100,368		$	13,708,560


Liabilities and Shareholders’ Equity
Deposits:
Non-interest bearing	$	1,397,433		$	1,279,256		$	1,201,194		$	1,042,730		$	953,814
Interest bearing		9,861,827			9,635,913			9,602,479			9,919,509			9,670,928

Total deposits		11,259,260			10,915,169			10,803,673			10,962,239			10,624,742
Notes payable		1,000			1,000			1,000			1,000			1,000
Federal Home Loan Bank advances		423,500			423,500			423,500			414,832			415,571
Other borrowings		432,706			250,032			260,620			241,522			218,424
Secured borrowings — owed to securitization investors		600,000			600,000			600,000			600,000			600,000
Subordinated notes		40,000			50,000			50,000			55,000			55,000
Junior subordinated debentures		249,493			249,493			249,493			249,493			249,493
Trade date securities payable		2,243			10,000			—			2,045			200
Accrued interest payable and other liabilities		134,309			141,847			155,321			175,325			159,394

Total liabilities		13,142,511			12,641,041			12,543,607			12,701,456			12,323,824


Shareholders’ Equity:
Preferred stock		49,704			49,672			49,640			287,234			286,460
Common stock		34,989			34,947			34,864			31,145			31,084
Surplus		969,314			967,587			965,203			682,318			680,261
Treasury stock		(50	)		(74	)		—			(51	)		(4	)
Retained earnings		415,297			404,580			392,354			394,323			381,969
Accumulated other comprehensive income (loss)		4,132			(3,459	)		(5,512	)		3,943			4,966

Total shareholders’ equity		1,473,386			1,453,253			1,436,549			1,398,912			1,384,736

Total liabilities and shareholders’ equity	$	14,615,897		$	14,094,294		$	13,980,156		$	14,100,368		$	13,708,560

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


	Three Months Ended
	June 30,			March 31,			December 31,			September 30,		June 30,
(In thousands, except per share data)	2011			2011			2010			2010		2010

Interest income
Interest and fees on loans	$	132,338		$	136,543		$	144,652		$	137,902	$	135,800
Interest bearing deposits with banks		870			936			1,342			1,339		1,215
Federal funds sold and securities purchased under resale agreements		23			32			39			35		34
Securities		11,438			9,540			7,236			7,438		11,218
Trading account securities		10			13			11			19		343
Federal Home Loan Bank and Federal Reserve Bank stock		572			550			512			488		472
Brokerage customer receivables		194			166			170			180		166

Total interest income		145,445			147,780			153,962			147,401		149,248

Interest expense
Interest on deposits		22,404			23,956			27,853			31,088		31,626
Interest on Federal Home Loan Bank advances		4,010			3,958			4,038			4,042		4,094
Interest on notes payable and other borrowings		2,715			2,630			1,631			1,411		1,439
Interest on secured borrowings — owed to securitization investors		2,994			3,040			3,089			3,167		3,115
Interest on subordinated notes		194			212			233			265		256
Interest on junior subordinated debentures		4,422			4,370			4,441			4,448		4,404

Total interest expense		36,739			38,166			41,285			44,421		44,934

Net interest income		108,706			109,614			112,677			102,980		104,314
Provision for credit losses		29,187			25,344			28,795			25,528		41,297

Net interest income after provision for credit losses		79,519			84,270			83,882			77,452		63,017

Non-interest income
Wealth management		10,601			10,236			10,108			8,973		9,193
Mortgage banking		12,817			11,631			22,686			20,980		7,985
Service charges on deposit accounts		3,594			3,311			3,346			3,384		3,371
Gains on available-for-sale securities, net		1,152			106			159			9,235		46
Gain on bargain purchases		746			9,838			250			6,593		26,494
Trading (losses) gains		(30	)		(440	)		611			210		(1,617	)
Other		7,772			6,205			7,301			5,281		4,964

Total non-interest income		36,652			40,887			44,461			54,656		50,436

Non-interest expense
Salaries and employee benefits		53,079			56,099			59,031			57,014		50,649
Equipment		4,409			4,264			4,384			4,203		4,046
Occupancy, net		6,772			6,505			5,927			6,254		6,033
Data processing		3,147			3,523			4,388			3,891		3,669
Advertising and marketing		1,440			1,614			1,881			1,650		1,470
Professional fees		4,533			3,546			4,775			4,555		3,957
Amortization of other intangible assets		704			689			719			701		674
FDIC insurance		3,281			4,518			4,572			4,642		5,005
OREO expenses, net		6,577			5,808			7,384			4,767		5,843
Other		13,264			11,543			13,140			12,046		11,317

Total non-interest expense		97,206			98,109			106,201			99,723		92,663

Income before taxes		18,965			27,048			22,142			32,385		20,790
Income tax expense		7,215			10,646			7,937			12,287		7,781

Net income	$	11,750		$	16,402		$	14,205		$	20,098	$	13,009

Preferred stock dividends and discount accretion	$	1,033		$	1,031		$	16,175		$	4,943	$	4,943

Net income (loss) applicable to common shares	$	10,717		$	15,371		$	(1,970	)	$	15,155	$	8,066

Net income (loss) per common share — Basic	$	0.31		$	0.44		$	(0.06	)	$	0.49	$	0.26

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

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

Weighted average common shares outstanding		34,971			34,928			32,015			31,117		31,074
Dilutive potential common shares		8,438			7,794			—			988		1,267

Average common shares and dilutive common shares		43,409			42,722			32,015			32,105		32,341

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


	June 30,			March 31,			December 31,			September 30,			June 30,
(Dollars in thousands)	2011			2011			2010			2010			2010
Balance:
Commercial	$	2,132,436		$	1,937,561		$	2,049,326		$	1,952,791		$	1,827,618
Commercial real estate		3,374,668			3,356,562			3,338,007			3,331,498			3,347,823
Home equity		880,702			891,332			914,412			919,824			922,305
Residential real-estate		329,381			344,909			353,336			342,009			332,673
Premium finance receivables — commercial		1,429,436			1,337,851			1,265,500			1,323,934			1,346,985
Premium finance receivables — life insurance		1,619,668			1,539,521			1,521,886			1,434,994			1,378,657
Indirect consumer⁽¹⁾		57,718			52,379			51,147			56,575			69,011
Consumer and other		101,068			101,687			106,272			99,530			99,091

Total loans, net of unearned income, excluding covered loans	$	9,925,077		$	9,561,802		$	9,599,886		$	9,461,155		$	9,324,163	��
Covered loans		408,669			431,299			334,353			353,840			275,563

Total loans, net of unearned income	$	10,333,746		$	9,993,101		$	9,934,239		$	9,814,995		$	9,599,726


Mix:
Commercial		20	%		19	%		21	%		20	%		19	%
Commercial real estate		33			34			34			34			35
Home equity		8			9			9			9			10
Residential real-estate		3			4			3			3			3
Premium finance receivables — commercial		14			13			13			13			14
Premium finance receivables — life insurance		16			15			15			15			14
Indirect consumer⁽¹⁾		1			1			1			1			1
Consumer and other		1			1			1			1			1

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

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


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

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


	June 30,			March 31,			December 31,			September 30,			June 30,
(Dollars in thousands)	2011			2011			2010			2010			2010
Balance:
Non-interest bearing	$	1,397,433		$	1,279,256		$	1,201,194		$	1,042,730		$	953,814
NOW		1,530,068			1,526,955			1,561,507			1,551,749			1,560,733
Wealth Management deposits⁽¹⁾		737,428			659,194			658,660			710,435			694,830
Money Market		1,985,661			1,844,416			1,759,866			1,746,168			1,722,729
Savings		736,974			749,681			744,534			713,823			594,753
Time certificates of deposit		4,871,696			4,855,667			4,877,912			5,197,334			5,097,883

Total deposits	$	11,259,260		$	10,915,169		$	10,803,673		$	10,962,239		$	10,624,742


Mix:
Non-interest bearing		12	%		12	%		11	%		10	%		9	%
NOW		14			14			15			14			15
Wealth Management deposits⁽¹⁾		6			6			6			6			6
Money Market		18			17			16			16			16
Savings		7			7			7			7			6
Time certificates of deposit		43			44			45			47			48

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
	June 30,			March 31,			December 31,			September 30,			June 30,
(Dollars in thousands)	2011			2011			2010			2010			2010
Net interest income	$	109,114		$	110,028		$	113,083		$	103,396		$	104,775
Call option income		2,287			2,470			1,075			703			169

Net interest income including call option income	$	111,401		$	112,498		$	114,158		$	104,099		$	104,944


Yield on earning assets		4.54	%		4.68	%		4.72	%		4.59	%		4.91	%
Rate on interest-bearing liabilities		1.32			1.39			1.43			1.55			1.65

Rate spread		3.22	%		3.29	%		3.29	%		3.04	%		3.26	%
Net free funds contribution		0.18			0.19			0.17			0.18			0.17

Net interest margin		3.40			3.48			3.46			3.22			3.43
Call option income		0.07			0.08			0.03			0.02			0.01

Net interest margin including call option income		3.47	%		3.56	%		3.49	%		3.24	%		3.44	%

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


	Six Months Ended			Years Ended
	June 30,			December 31,
(Dollars in thousands)	2011			2010			2009			2008			2007
Net interest income	$	219,142		$	417,565		$	314,096		$	247,054		$	264,777
Call option income		4,757			2,236			1,998			29,024			2,628

Net interest income including call option income	$	223,899		$	419,801		$	316,094		$	276,078		$	267,405


Yield on earning assets		4.61	%		4.80	%		5.07	%		5.88	%		7.21	%
Rate on interest-bearing liabilities		1.35			1.61			2.29			3.31			4.39

Rate spread		3.26	%		3.19	%		2.78	%		2.57	%		2.82	%
Net free funds contribution		0.18			0.18			0.23			0.24			0.29

Net interest margin		3.44			3.37			3.01			2.81			3.11
Call option income		0.07			0.02			0.02			0.33			0.03

Net interest margin including call option income		3.51	%		3.39	%		3.03	%		3.14	%		3.14	%

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


	Three Months Ended
	June 30,			March 31,			December 31,			September 30,			June 30,
(In thousands)	2011			2011			2010			2010			2010
Liquidity management assets	$	2,591,398		$	2,632,012		$	2,844,351		$	2,802,964		$	2,613,179
Other earning assets		28,886			27,718			29,676			34,263			62,874
Loans, net of unearned income		9,859,789			9,849,309			9,777,435			9,603,561			9,356,033
Covered loans		418,129			326,571			337,690			325,751			210,030

Total earning assets	$	12,898,202		$	12,835,610		$	12,989,152		$	12,766,539		$	12,242,116

Allowance for loan losses		(125,537	)		(118,610	)		(116,447	)		(113,631	)		(108,764	)
Cash and due from banks		135,670			152,264			151,562			154,078			137,531
Other assets		1,196,801			1,149,261			1,175,084			1,208,771			1,119,654

Total assets	$	14,105,136		$	14,018,525		$	14,199,351		$	14,015,757		$	13,390,537


Interest-bearing deposits	$	9,491,778		$	9,542,637		$	9,839,223		$	9,823,525		$	9,348,541
Federal Home Loan Bank advances		421,502			416,021			415,260			414,789			417,835
Notes payable and other borrowings		338,304			266,379			244,044			232,991			217,751
Secured borrowings — owed to securitization investors		600,000			600,000			600,000			600,000			600,000
Subordinated notes		45,440			50,000			53,369			55,000			57,198
Junior subordinated notes		249,493			249,493			249,493			249,493			249,493

Total interest-bearing liabilities	$	11,146,517		$	11,124,530		$	11,401,389		$	11,375,798		$	10,890,818

Non-interest bearing deposits		1,349,549			1,261,374			1,148,208			1,005,170			932,046
Other liabilities		148,999			194,752			207,000			243,282			195,984
Equity		1,460,071			1,437,869			1,442,754			1,391,507			1,371,689

Total liabilities and shareholders’ equity	$	14,105,136		$	14,018,525		$	14,199,351		$	14,015,757		$	13,390,537

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


	Three Months Ended
	June 30,			March 31,			December 31,			September 30,			June 30,
	2011			2011			2010			2010			2010
Yield earned on:
Liquidity management assets		2.04	%		1.75	%		1.32	%		1.36	%		2.04	%
Other earning assets		2.89			2.65			2.45			2.37			3.28
Loans, net of unearned income		5.05			5.34			5.71			5.54			5.71
Covered loans		8.06			8.78			4.75			4.84			5.12

		4.54	%		4.68	%		4.72	%		4.59	%		4.91	%


Rate paid on:
Interest-bearing deposits		0.95	%		1.02	%		1.12	%		1.26	%		1.36	%
Federal Home Loan Bank advances		3.82			3.86			3.86			3.87			3.93
Notes payable and other borrowings		3.22			4.00			2.65			2.40			2.65
Secured borrowings — owed to securitization investors		2.00			2.05			2.04			2.09			2.08
Subordinated notes		1.69			1.69			1.71			1.89			1.77
Junior subordinated notes		7.01			7.01			6.97			6.98			6.98

		1.32	%		1.39	%		1.43	%		1.55	%		1.65	%


Interest rate spread		3.22	%		3.29	%		3.29	%		3.04	%		3.26	%
Net free funds/contribution		0.18			0.19			0.17			0.18			0.17

Net interest income/Net interest margin		3.40	%		3.48	%		3.46	%		3.22	%		3.43	%

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


	Three Months Ended
	June 30,			March 31,			December 31,		September 30,		June 30,
(In thousands)	2011			2011			2010		2010		2010
Brokerage	$	6,208		$	6,325		$	6,641	$	5,806	$	5,712
Trust and asset management		4,393			3,911			3,467		3,167		3,481

Total wealth management		10,601			10,236			10,108		8,973		9,193

Mortgage banking		12,817			11,631			22,686		20,980		7,985
Service charges on deposit accounts		3,594			3,311			3,346		3,384		3,371
Gains on available-for-sale securities		1,152			106			159		9,235		46
Gain on bargain purchases		746			9,838			250		6,593		26,494
Trading (losses) gains		(30	)		(440	)		611		210		(1,617	)
Other:
Fees from covered call options		2,287			2,470			1,074		703		169
Bank Owned Life Insurance		661			876			811		552		418
Administrative services		781			717			715		744		708
Miscellaneous		4,043			2,142			4,701		3,282		3,669

Total other income		7,772			6,205			7,301		5,281		4,964


Total Non-Interest Income	$	36,652		$	40,887		$	44,461	$	54,656	$	50,436

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


	Three Months Ended
	June 30,		March 31,		December 31,		September 30,		June 30,
(In thousands)	2011		2011		2010		2010		2010
Salaries and employee benefits:
Salaries	$	32,008	$	33,135	$	31,876	$	30,537	$	28,714
Commissions and bonus		10,760		10,714		18,043		17,366		12,967
Benefits		10,311		12,250		9,112		9,111		8,968

Total salaries and employee benefits		53,079		56,099		59,031		57,014		50,649
Equipment		4,409		4,264		4,384		4,203		4,046
Occupancy, net		6,772		6,505		5,927		6,254		6,033
Data processing		3,147		3,523		4,388		3,891		3,669
Advertising and marketing		1,440		1,614		1,881		1,650		1,470
Professional fees		4,533		3,546		4,775		4,555		3,957
Amortization of other intangibles		704		689		719		701		674
FDIC insurance		3,281		4,518		4,572		4,642		5,005
OREO expenses, net		6,577		5,808		7,384		4,767		5,843
Other:
Commissions - 3rd party brokers		991		1,030		965		979		1,097
Postage		1,170		1,078		1,220		1,254		1,229
Stationery and supplies		888		840		1,069		812		761
Miscellaneous		10,215		8,595		9,886		9,001		8,230

Total other expense		13,264		11,543		13,140		12,046		11,317


Total Non-Interest Expense	$	97,206	$	98,109	$	106,201	$	99,723	$	92,663

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


	Three Months Ended
	June 30,			March 31,			December 31,			September 30,			June 30,
(Dollars in thousands)	2011			2011			2010			2010			2010
Allowance for loan losses at beginning of period	$	115,049		$	113,903		$	110,432		$	106,547		$	102,397
Provision for credit losses		28,666			24,376			28,795			25,528			41,297
Other adjustments					—			—			—			—
Reclassification (to)/from allowance for unfunded lending-related commitments		(317	)		2,116			(1,781	)		(206	)		785

Charge-offs:
Commercial		7,583			9,140			6,060			3,076			4,781
Commercial real estate		20,691			13,342			13,591			15,727			12,311
Home equity		1,300			773			1,322			1,234			3,089
Residential real estate		282			1,275			311			116			310
Premium finance receivables — commercial		1,893			1,507			1,820			1,505			17,747
Premium finance receivables — life insurance		214			30			154			79			—
Indirect consumer		44			120			239			198			256
Consumer and other		266			160			565			288			109

Total charge-offs		32,273			26,347			24,062			22,223			38,603


Recoveries:
Commercial		301			266			268			286			143
Commercial real estate		463			338			57			197			218
Home equity		19			8			2			8			6
Residential real estate		3			2			2			3			2
Premium finance receivables — commercial		5,375			268			144			220			188
Premium finance receivables — life insurance		12			—			—			—			—
Indirect consumer		42			66			38			29			81
Consumer and other		22			53			8			43			33

Total recoveries		6,237			1,001			519			786			671

Net charge-offs		(26,036	)		(25,346	)		(23,543	)		(21,437	)		(37,932	)

Allowance for loan losses at period end	$	117,362		$	115,049		$	113,903		$	110,432		$	106,547

Allowance for unfunded lending-related commitments at period end		2,335			2,018			4,134			2,375			2,169

Allowance for credit losses at period end	$	119,697		$	117,067		$	118,037		$	112,807		$	108,716


Annualized net charge-offs by category as a percentage of its own respective category’s average:
Commercial		1.45	%		1.85	%		1.11	%		0.60	%		1.04	%
Commercial real estate		2.40			1.57			1.66			1.84			1.45
Home equity		0.58			0.34			0.57			0.53			1.34
Residential real estate		0.25			0.91			0.17			0.07			0.23
Premium finance receivables — commercial		(0.99	)		0.37			0.54			0.39			5.46
Premium finance receivables — life insurance		0.05			0.01			0.04			0.02			—
Indirect consumer		0.02			0.41			1.51			1.08			0.92
Consumer and other		0.98			0.42			1.98			1.01			0.27

Total loans, net of unearned income		1.06	%		1.04	%		0.96	%		0.89	%		1.63	%


Net charge-offs as a percentage of the provision for credit losses		90.83	%		103.98	%		81.76	%		83.97	%		91.85	%

Loans at period-end	$	9,925,077		$	9,561,802		$	9,599,886		$	9,461,155		$	9,324,163
Allowance for loan losses as a percentage of loans at period end		1.18	%		1.20	%		1.19	%		1.17	%		1.14	%
Allowance for credit losses as a percentage of loans at period end		1.21	%		1.22	%		1.23	%		1.19	%		1.17	%

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


	June 30,			March 31,			December 31,			September 30,			June 30,
(Dollars in thousands)	2011			2011			2010			2010			2010
Loans past due greater than 90 days and still accruing:
Commercial	$	—		$	150		$	478		$	—		$	99
Commercial real-estate		—			1,997			—			—			2,248
Home equity		—			—			—			—			—
Residential real-estate		—			—			—			—			—
Premium finance receivables — commercial		4,446			6,319			8,096			6,853			6,350
Premium finance receivables — life insurance		324			—			—			1,222			1,923
Indirect consumer		284			310			318			355			579
Consumer and other		—			1			1			2			3

Total loans past due greater than 90 days and still accruing		5,054			8,777			8,893			8,432			11,202

Non-accrual loans:
Commercial		26,168			26,157			16,382			19,444			17,741
Commercial real-estate		89,793			94,001			93,963			83,340			82,984
Home equity		15,853			11,184			7,425			6,144			7,149
Residential real-estate		7,379			4,909			6,085			6,644			4,436
Premium finance receivables — commercial		10,309			9,550			8,587			9,082			11,389
Premium finance receivables — life insurance		670			342			354			222			—
Indirect consumer		89			320			191			446			438
Consumer and other		757			147			252			569			62

Total non-accrual loans		151,018			146,610			133,239			125,891			124,199

Total non-performing loans:
Commercial		26,168			26,307			16,860			19,444			17,840
Commercial real-estate		89,793			95,998			93,963			83,340			85,232
Home equity		15,853			11,184			7,425			6,144			7,149
Residential real-estate		7,379			4,909			6,085			6,644			4,436
Premium finance receivables — commercial		14,755			15,869			16,683			15,935			17,739
Premium finance receivables — life insurance		994			342			354			1,444			1,923
Indirect consumer		373			630			509			801			1,017
Consumer and other		757			148			253			571			65

Total non-performing loans	$	156,072		$	155,387		$	142,132		$	134,323		$	135,401
Other real estate owned		82,772			85,290			71,214			76,654			86,420

Total non-performing assets	$	238,844		$	240,677		$	213,346		$	210,977		$	221,821


Total non-performing loans by category as a percent of its own respective category’s period-end balance:
Commercial		1.23	%		1.36	%		0.82	%		1.00	%		0.98	%
Commercial real-estate		2.66			2.86			2.81			2.50			2.55
Home equity		1.80			1.25			0.81			0.67			0.78
Residential real-estate		2.24			1.42			1.72			1.94			1.33
Premium finance receivables — commercial		1.03			1.19			1.32			1.20			1.32
Premium finance receivables — life insurance		0.06			0.02			0.02			0.10			0.14
Indirect consumer		0.65			1.20			0.99			1.42			1.47
Consumer and other		0.75			0.15			0.24			0.57			0.07

Total loans		1.57	%		1.63	%		1.48	%		1.42	%		1.45	%


Total non-performing assets as a percentage of total assets		1.63	%		1.71	%		1.53	%		1.50	%		1.62	%


Allowance for loan losses as a percentage total non-performing loans		75.20	%		74.04	%		80.14	%		82.21	%		78.69	%

Wintrust Financial (WTFC) 8-KWintrust Financial Corporation Reports Second Quarter 2011 Net Income of $11.8 Million and Strong Loan Growth