Wintrust Financial Corporation · NASDAQ:WTFC
Wintrust Financial — Retail Banking & Financial Services Symposium (June 2006)
46 slides from Wintrust Financial's conference presentation, Jun 20, 2006
Slide 1: Wintrust Financial Corporation
Wintrust Financial Corporation
Slide 2: Edward J. Wehmer, President and Chief Executive Officer
Edward J. Wehmer President and Chief Executive Officer
Slide 3: Forward-Looking Information
FORWARD-LOOKING INFORMATION During the course of our remarks today, you will hear us make certain predictive statements regarding our plans and strategies and anticipated financial effects to assist you better in understanding our company. These forward looking statements about future results are no
Slide 4: Who We Are: A Little History
Who We Are A Little History
Slide 5: Who We Are
Who We Are Approximately fourteen year-old community focused banking organization with approximately $9.0 billion in assets Fifteen community banks with strong ties to local residents and business leaders in the Chicago and Milwaukee metropolitan markets. 9 charters started since 1991 and 7 acquisit
Slide 6: Historical Growth
1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 Current Bank and Trust Subsidiaries 2 2 3 4 5 6 7 8 9 10 10 14 16 22 23 25 Banking Offices 1 1 3 5 11 14 17 21 24 28 29 31 36 50 62 72 Historical Growth
Slide 7: Business Overview - Compound Annual Growth Rates
Business Overview - Compound Annual Growth Rates (Years ended December 31, 2005) 1 year 2 year 3 year 4 year 5 year Revenues 27.6% 26.8% 25.0% 31.8% 31.4% Net Income 30.5 32.6 34.0 38.1 43.1 EPS (diluted) 17.5 17.9 19.8 21.3 27.1 Assets 27.4 31.2 30.0 31.9 31.2 Loans 19.9 25.7 26.8 26.8 27.5 Deposit
Slide 8: Consolidated Net Income
Consolidated Net Income (000s) 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 1Q05 1Q06 -2236 1497 -973 4846 6245 9427 11155 18439 27875 38118 51334 67016 15673 19013 West 31.6 2606 North 43.9
Slide 9: Consistent EPS Growth
Consistent EPS Growth 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 Annual 0.4 0.49 0.73 0.83 1.27 1.6 1.98 2.34 2.75 3.02 Quarterly 0.07 0.09 0.1 0.13 0.08 0.08 0.17 0.16 0.15 0.18 0.2 0.21 0.23 0.24 0.07 0.29 0.29 0.32 0.33 0.33 0.4 0.37 0.4 0.43 0.45 0.49 0.53 0.52 0.54 0.58 0.6 0.62 0.68 0.5
Slide 10: Prospects For Continued Earnings Growth
Prospects For Continued Earnings Growth Each chartered bank expected to increase assets $50 - $75 million per year and improve ROA 10 - 20 basis points. Newly chartered de novo every two years Recent acquisitions should be accretive right out of the box and even more so when put on our growth track
Slide 11: Loans Growth Issues
Loans Growth Issues Average Loan-to-deposit Ratios: 2000 87.7% 2001 87.4% 2002 88.5% 2003 86.4% 2004 87.7% 2005 83.4% 1Q06 79.6% Current year ratio is lower due to: What we deem to be irrational competition on the pricing and underwriting terms being offered in the marketplace Our niche portfolio gr
Slide 12: Total Assets by Bank (in millions)
1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 1Q06 Crystal Lake 7 40 Total 52 83 189 354 471 706 1053 1348 1679 2103 2705 3722 4747 6419 8177 8382 Barrington 11 72 105 Libertyville 35 76 124 174 North Shore 44 105 169 266 287 Hinsdale 23 67 115 167 223 254 Lake Forest 8
Slide 13: Asset Growth of Banks by Year
Asset Growth of Banks by Year 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 1Q06 Lake Forest 8 49 96 143 195 270 380 441 499 581 667 897 1087 1256 1334 1404 Hinsdale 0 23 67 115 167 223 281 350 401 508 642 746 887 980 1037 North Shore 0 44 105 169 266 294 360 450 563 771
Slide 14: Deposit Composition
Deposit Composition As of March 31, 2006 - $6.882 Billion DDA NOW Wealth Mgmt Money Market Savings CDs East 0.09 0.11 0.06 0.09 0.04 0.61 NOW Certificates of Deposit Money Market Wealth Mgmt. DDA Savings
Slide 15: Wintrust Core Deposit Composition
Wintrust Core Deposit Composition As of 3/31/2006 81% Retail wCommercial
Slide 16: Loan Growth
Loan Growth 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 3/31/06 BV per share 712 974 1270 1548 2018 2556 3298 4348 5214 5435 (in millions)
Slide 17: Loan Composition
Loan Composition Desire a Loan-to-deposit ratio of 85%-90% Loan Portfolio allocation: 60-65% Core Loans (Commercial, real estate, retail) 35-40% Niche Loan Portfolios Assists in maintaining sound credit quality (i.e. lenders don't need to stretch for volume) Approach allows us to be asset driven Hav
Slide 18: Loan Portfolio Composition
Loan Portfolio Composition As of March 31, 2006 - $5.4 Billion Comm'l Premium Finance Indirect Auto Tricom Other Niches Res. Real Estate Home Equity Other East 0.58 0.17 0.04 0.01 0.03 0.05 0.11 0.01 Comm'l and Comm'l R/E Premium Finance Indirect Consumer Tricom Res. R/E Home Equity Other Other Nich
Slide 19: Wintrust Core Loan Composition
Wintrust Core Loan Composition As of 3/31/2006 Retail mCommercial
Slide 20: Our Growth And Marketing Strategy
Our Growth And Marketing Strategy
Slide 21: Marketing Strategy
Marketing Strategy Primarily serve the affluent suburbs of Chicago Our target market is anywhere within 90 miles of our Lake Forest Ill. headquarters Position as the local alternatives to the big banks Decentralized management style coupled with multi-business unit approach allows us to keep decisio
Slide 22: Banking Locations
Banking Locations Wisconsin
Slide 23: Market Demographics
Lake Forest Bank Lake Forest $255,720 Hinsdale Bank Hinsdale $211,503 North Shore Community Wilmette $176,465 Libertyville Bank Libertyville $139,362 Barrington Bank Barrington $182,830 Crystal Lake Bank Crystal Lake $100,153 Northbrook Bank Northbrook $148,270 Beverly Bank Beverly - Chicago $76,498
Slide 24: Marketing Strategy
Lead with retail - leads to commercial growth Go after the big guys - Creative advertising that positions our community banks as the "David" versus the "Goliath" big banks Go after market share - Desire to have No. 1 or 2 market share in short order Focus on household penetration Cross-sell Service,
Slide 25: Marketing Strategy - New Bank
Marketing Strategy - New Bank Image differentiation -Community bank versus the "big bad commoditizers" Design market specific cradle to grave products with attributes tailored to beat all local competition Shotgun advertising (media and direct mail) of bundled account packages which provide added be
Slide 26: Marketing Strategy - Ongoing
Marketing Strategy - Ongoing Continued image re-enforcement of "little vs. big" Continued product advertising to gain new households and additional wallet share of existing customers Utilize MCIF system for targeted cross sales opportunities Utilize MCIF for "life stage" promotions The longer we kee
Slide 27: Number of Households
Number of Households Retail and Commercial Banking Customers Q4 1998 Q1 1999 Q2 1999 Q3 1999 Q4 1999 Q1 2000 Q2 2000 Q3 2000 Q4 2000 Q1 2001 Q2 2001 Q3 2001 Q4 2001 Q1 2002 Q3 2002 Q4 2002 Q1 2003 Q2 2003 Q3 2003 Q4 2003 Q1 2004 Q2 2004 Q3 2004 Q4 2004 Q1 2005 Q2 2005 Q3 2005 Q4 2005 Households 2867
Slide 28: Deposit Market Share - Chicago MSA
Deposit Market Share-Chicago MSA As of June 30, 2005 In-market Deposit Deposit Market Bank Holding Company Dollars Share % JP Morgan Chase & Co. ** $38.4 BB 16.02% ABN AMRO Holding N.V. ** $31.0 BB 12.92% Bank of Montreal ** $23.3 BB 9.74% Northern Trust Corporation $ 8.5 BB 3.53% Fifth Third Bancor
Slide 29: Average Deposit Account Size
Average Deposit Account Size De Novo Average Opening Acq. Deposit Bank Date Date Acct. Size Lake Forest Bank & Trust 12/91 $39,300 Hinsdale Bank & Trust 10/93 $21,700 North Shore Community Bank 09/94 $22,600 Libertyville Bank & Trust 10/95 $20,000 Barrington Bank &Trust 12/96 $27,800 Crystal Lake Ba
Slide 30: Accounts per Household by Relationship Duration
Accounts per Houshold by Relationship Duration x r = 6 6 Years as a customer Retail Accts @Cammercial Acts
Slide 31: Marketing Strategy - New Competition
Marketing Strategy - New Competition Competition is nothing new - we've always had it and always will We never play defense - always offense We will not lose what we have worked so hard to build Corporate structure allows us to react quickly and directly "Meet or Beat"
Slide 32: Examples of our Advertising
Examples of our Advertising Continually Searching For The Purple Cow
Slide 33: int ound
int ound * NOW Checking Acco Wuraroy Bank “Han Bingo Bt 36
Slide 34: Become a Founder of Village Bank
BECOME A FOUNDER OF VILLAGE BANK AND STAY IN THE SAFE HARBOR FOR LIFE! eeecibeeeen a
Slide 35: Bring The Kids to Free Event
Bring The Kids to Another S ~iiee, Free Event! an £05 he i mi ify sa ° You don't have to go jar for FUN!
Slide 36: Student Checking Account advertisement
Slide 37: Introducing our new Platinum Adventures
Introducing our new Platinum Adventures™ Travel and Activities Club!
Slide 38: Participating Hometown Merchants
PanriciparinG HOMETOWN MERCHANTS
Slide 39: What makes you think I'm not from around here
What makes you think | 1m not fiom around here
Slide 40: At the bank I wear many hats
“AT THE BANK | WEAR MANY HATS: CEO, Banker, DiRECTOR, FRIEND. AND CHAUFFEUR.”
Slide 41: A Great Community Deserves a Great Community Bank
Ince we fist opened our doors in 1996, our commitment and par Fepaton nthe Barington oman ty ha gone Beyond 3 va sie and fnendly greeting, We feature prod ets designed to meet the nee of 4 Bee ee ae a ‘expanded our facilities to bring you A 2]| SHUG comenences ie moe pu i Pea eae i publemesting ne 4
Slide 42: Protect Yourself Against Identity Theft
Protect Yourself Against Identity Theft cat Free Document Shredder ‘when you Join our bank by opening ’2 SingleSolution* checking account Open a SingleSolution checking Free Shredding Event count the fist and on . checking account you'll ever need — if Meee land receive a fee Fll P {$79.99 ret val p
Slide 43: Banking The Way It Used To Be
Banking The Way It Used To Be! Markot Rate Savings Account Foatures!
Slide 44: Jr. Savers Newsletter
Wate 2006 Jr. Savers Newsletter The Recap. Pumpkins & Sc -ecrows Fall Fest” Upcoming Events In the know c Wiraton Bank
Slide 45: Home Equity Rates haven't been this low
Home Equity Rates haven't been this low since stm — ..Well, you get the picture. Sa OS ee SPECIAL INTRODUCTORY RATE FOR THE FIRST 6 MONTHS sees eas wiped Aah
Slide 46: Community Banking Isn't the Only Treasure You'll Find
COMMUNITY BANKING ISN'T THE ONLY ATLAKE FO} TREASURE YOU'LL FIND REST BANK & TRUST IRDA TON a
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