Slide 1: Earnings Release Presentation Q1 2022
Wintrust Financial Corporation Earnings Release Presentation Q1 2022
Slide 2: Forward-Looking Statements
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,” “possi
Slide 3: Forward-Looking Statements
Forward-Looking Statements • ability of the Company to use technology to provide products and services that will satisfy customer demands and create efficiencies in operations and to manage risks associated therewith; • failure or breaches of our security systems or infrastructure, or those of third
Slide 4: Q1 2022 Summary
Q1 2022 Summary Wintrust kicked off 2022 with an impressive first quarter reporting record quarterly pre-tax, pre-provision income highlighted by continued expansion of net interest income. Our diversified loan book exhibited strong growth while credit quality remains extraordinarily good. The Compa
Slide 5: Q1 '22 Highlights
Q1 '22 Highlights (Comparative to Q4 '21) Strong core loan growth coupled with improvement in net interest income Net Income Pre-Tax, Pre-Provision1 Diluted EPS2 $127.4 million $177.8 million $2.07 +$28.6 million +$31.4 million +$0.49 Return on Assets Return on Equity Net Overhead Ratio 1.04% 11.94%
Slide 6: Earnings Summary
Earnings Summary Differentiated, highly diversified and sustainable business model Sustained Net Income Driven by Diverse Loan Growth Record Quarterly Pre-Tax, Pre-Provision Income ($ in Millions) ($ in Millions) $153.1 $177.8 $161.5 $127.4 $146.3 $141.8 $105.1 $109.1 $128.9 $98.8 1.38% 0.92% 0.92%
Slide 7: Loan Portfolio
Loan Portfolio Balanced loan portfolio of approximately 1/3 Commercial, 1/3 Commercial Real Estate and 1/3 Specialty Finance Diversified Loan Growth Overcoming PPP Forgiveness Balanced Loan Mix (as of 3/31/2022) ($ in Billions) ($ in Billions) Year-over-Year Change All Other Loans $2.2 $2.1B or 6% i
Slide 8: Deposit Portfolio
Deposit Portfolio Enviable core deposit franchise in Chicago and Milwaukee market areas Deposit Growth Coupled with Decreasing Funding Costs Diversified Deposit Mix (as of 3/31/2022) ($ in Billions) ($ in Billions) Year-over-Year Change Time Certificates of $4.3B or 11% Deposits $3.7 Non-Interest-Be
Slide 9: Liquidity
Liquidity Excess liquidity ready for deployment with market expectations of rate increases Interest-Bearing Cash1 Intentionally Maintained to Limit Locking in Partial Deployment of Excess Liquidity into Investment Securities Low Interest Rates ($ in Billions) ($ in Billions) $6.1 $6.1 $6.4 $6.5 $4.7
Slide 10: Capital
Capital Adequate and appropriate capital levels given the Company's risk profile Capital Adequacy1 Relatively Stable TBV3 Despite Market Volatility 12.6% 12.4% 12.1% $2.23 11.6% 11.6% 10.2% 10.1% 9.9% 9.6% 9.5% 9.0% 9.0% 8.9% 8.6% 8.6% $0.03 $59.64 $(2.10) $(0.46) $59.34 8.2% 8.2% 8.1% 8.0% 8.1% 3/3
Slide 11: Digital Usage Trends
Digital Usage Trends Modern digital tools coupled with a high touch community focus Digital Use - Online/Mobile Zelle Payments In Tune with Online/Mobile Use Trends Growing Zelle Adoption (in Thousands) 715.4 532.3 67.3% 66.0% 253.6 63.2% Q1 2020 Q1 2021 Q1 2022 Q1 2020 Q1 2021 Q1 2022 Online/Mobile
Slide 12: Our Customers are Highly Satisfied
Awards - Best in Class - Commercial Banking1 Our Customers are Highly Satisfied 97% of our current customers 97% rank their satisfaction with us as with their Bank. “excellent” or “above average.” ACCORDING TO • Overall satisfaction • Ease of doing business OUR CUSTOMERS, • Bank you can trust WE RAN
Slide 13: Net Interest Margin
Net Interest Margin Well-positioned ahead of future rate increases Expansion in Net Interest Income and Increasing NIM1 NIM Benefited by Liquidity Deployment and Lower Deposit Costs ($ in Millions) $296.0 $299.3 $287.5 $7.4 $279.6 $14.2 0.03% $291.9 $21.2 $281.8 $261.9 $32.5 0.03% 2.61% $266.3 $27.0
Slide 14: Non-Interest Income
Non-Interest Income Strong fee business primarily driven by mortgage and wealth management Strategically Balanced Non-Interest Income Sources Significant Growth in Commercial Deposit Fees ($ in Millions) ($ in Millions) Year-over-Year Change $3.3M or 27.5% $186.5 $15.3 $14.1 $14.7 $13.2 $1.7 $1.6 $1
Slide 15: Mortgage Banking
Mortgage Banking Internal hedge with counter-cyclical returns relative to our net interest income related business lines Significant MSR1 Valuation Improvement Diminishing Originations for Sale due to Rising Mortgage Rates ($ in Millions) ($ in Millions) $13,126 $13,427 $12,307 $12,720 $2,222 $11,53
Slide 16: Non-Interest Expense
Non-Interest Expense Conservative and consistent operating philosophy Relatively Steady Staffing Costs Growth without Commensurate Expense Increase ($ in Millions) $180.8 1.32% $172.8 $170.9 $167.1 $172.4 1.22% 1.21% $28.4 $28.0 $25.7 $25.6 $28.4 1.00% 0.90% $61.4 68.56% $53.8 $57.0 $49.9 $51.8 5,30
Slide 17: Loan Portfolio
Loan Portfolio Highly diversified portfolio across U.S. and Canadian market areas Loan Portfolio1 - Geographic Diversification2 as of 3/31/2022 Total Loan Portfolio1 Primary Geographic Region Commercial: Canada Market: 2% Commercial, industrial and other Illinois/Wisconsin Leasing Nationwide Franchi
Slide 18: Credit Quality
Credit Quality Exceptional credit quality driven by a diversified loan portfolio Steadily Decreasing Non-Performing Loans ("NPLs") Exceptionally Low Levels of Net Charge-Offs ("NCOs") ($ in Millions) ($ in Millions) $99.1 0.17% $87.7 $90.0 0.07% $74.4 $13.3 0.02% $9.3 0.03% $1.9 0.00% $4.1 $57.3 $0.
Slide 19: Credit Quality - Commercial Loans
Credit Quality - Commercial Loans1 Low net charge-off levels with growth upside related to low line utilization Period-End Balances & Annualized Net Charge-Off Ratio2 Stable Levels of Non-Performing Loans ("NPLs") ($ in Millions) ($ in Millions) $11,346 $11,330 $26.5 $24.5 $22.5 $10,106 $20.4 $9,415
Slide 20: Credit Quality - Commercial Real Estate Loans
Credit Quality - Commercial Real Estate Loans Well-diversified portfolio with a majority of its exposure in stabilized, income producing properties Continued Steady Growth with Low Charge-Offs Non-Performing Loans ("NPLs") Continue to Decline ($ in Millions) ($ in Millions) $9,235 $8,886 $8,990 $8,6
Slide 21: Credit Quality - PFR Commercial
Credit Quality - PFR Commercial Despite market volatility, net charge-off levels remain low while outstanding balances grow Period-End Balances & Annualized Net Charge-Off Ratio1 Non-Performing Loans ("NPLs") Remain Below Historic Norms ($ in Millions) ($ in Millions) $4,855 $4,938 $4,522 $4,617 $3,
Slide 22: Credit Quality - PFR Life
Credit Quality - PFR Life Life Insurance portfolio remains extremely resilient and has continued to demonstrate exceptional credit quality Period-End Balances & Annualized Net Charge-Off Ratio1 Historically Low Non-Performing Loans ("NPLs") ($ in Millions) ($ in Millions) No material charge-offs hav
Slide 23: Credit Quality - CECL
Credit Quality - CECL Allowance for Credit Losses - 3/31/2022 vs. 12/31/2021 Macroeconomic Scenario Key Model Inputs Qualitative Considerations • Baa Corporate credit spread steadily widens • Economic Inputs • Current macroeconomic indicators and market before leveling off at the beginning of 2023.
Slide 24: Appendix
Appendix 24
Slide 25: Non-GAAP Reconciliation
Non-GAAP Reconciliation Three Months Ended Reconciliation of Non-GAAP Net Interest March 31, December 31, September 30, June 30, March 31, Margin and Efficiency Ratio ($ in Thousands): 2022 2021 2021 2021 2021 (A) Interest Income (GAAP) $ 328,252 $ 327,979 $ 322,457 $ 319,579 $ 305,469 Taxable-equiv
Slide 26: Non-GAAP Reconciliation
Non-GAAP Reconciliation Three Months Ended Reconciliation of Non-GAAP Tangible Common Equity March 31, December 31, September 30, June 30, March 31, (#039;s and Shares in Thousands): 2022 2021 2021 2021 2021 Total shareholders’ equity (GAAP) $ 4,492,256 $ 4,498,688 $ 4,410,317 $ 4,339,011 $ 4,252,511 L