Capital Ratios and Compliance - As of December 31, 2023, the Company's Tier 1 leverage ratio was 9.3%, exceeding the minimum requirement of 4.0%[70] - The Company's Tier 1 capital ratio was 10.3%, surpassing the well-capitalized standard of 6.0%[70] - The Common Equity Tier 1 capital ratio stood at 9.4%, well above the minimum requirement of 4.5%[70] - The total capital ratio was reported at 12.1%, exceeding the minimum requirement of 8.0%[70] - The Capital Conservation Buffer is currently at its fully phased-in level of 2.5%[74] - The Company is in compliance with specific net worth requirements for participation in mortgage programs as of December 31, 2023[72] - The Federal Reserve has not revised the well-capitalized standard for bank holding companies, but the Company's capital ratios exceed the expected revised standards[64] - The Company and its subsidiary banks are categorized as "well-capitalized" as of December 31, 2023[77] Regulatory Compliance and Legal Obligations - The company is subject to various federal, state, and local laws regarding data privacy and cybersecurity, which are evolving and may increase compliance costs[91] - The Anti-Money Laundering Act of 2020 may significantly alter due diligence and reporting requirements for banks over the next few years[89] - Wintrust Investments is registered as a broker-dealer with the SEC and in all 50 states, which subjects it to extensive regulation under federal and state securities laws[98] - The company must comply with the SEC's net capital rule, which requires maintaining a minimum amount of net assets in liquid form, potentially limiting its operations[101] - The company has implemented policies to comply with the Bank Secrecy Act, including maintaining an anti-money laundering program and conducting employee training[88] - The California Consumer Privacy Act imposes obligations on the company regarding personal information and may require additional costs for compliance[94] - The company is required to adopt a clawback policy for incentive-based compensation in line with SEC rules effective by November 28, 2023[104] - The company’s incentive compensation policies must not encourage imprudent risk-taking, as mandated by federal banking agencies[103] Workforce and Diversity - As of December 31, 2023, Wintrust employed 5,521 full-time equivalent employees, with 97% classified as full-time[107] - In 2023, Wintrust filled over 1,500 positions, with 53% of new hires identifying as female and 41% as racial or ethnic minorities[108] - The turnover rate for Wintrust in 2023 was approximately 14%, with voluntary departures accounting for about 63% of total turnover[108] - Wintrust's workforce is composed of 56% women and 33% racially and ethnically diverse individuals[110] - In 2023, Wintrust invested over 217,000 total hours in training for employees, maintaining an online training catalog with over 22,000 course offerings[112] - The company has implemented a "Leadership Journey" program to support the development of future leaders, with over 100 newly minted leaders participating in 2023[113] - Wintrust has taken steps to enhance diversity and inclusion, including mentoring programs with 31% minority participation and advocacy programs with over 72% women[110] Financial Projections and Interest Rate Management - The Company anticipates three 25 basis point rate cuts starting June 2024, expecting net interest margin to remain stable in a narrow range[515] - Under the Static Shock Scenario, the net interest income is projected to change by +2.6% and -0.7% for +200 and -200 basis points respectively as of December 31, 2023[517] - In the Ramp Scenario, the net interest income is projected to change by +1.6% and -1.5% for +200 and -200 basis points respectively as of December 31, 2023[517] - The Company uses derivative financial instruments to manage interest rate risk, including interest rate swaps and options[518] - The Company’s asset-liability management policies are monitored by the Risk Management Committee to balance interest rate, credit, and liquidity risks[512] - The Company does not expect inflation to materially impact its financial condition compared to interest rate changes[511] - The Company’s ability to manage interest-bearing liabilities is limited by customer preferences and local competition[514] - The Company continuously monitors its net interest margin and performs simulation analysis to identify potential adverse changes due to interest rate fluctuations[513] Environmental Impact - The corporate campus greenhouse gas carbon emissions totaled 4,473 tons in 2023, an increase from 4,194 tons in 2022[135] - The Climate Opportunities Net Zero Portfolio managed $102 million in climate-focused investments as of December 31, 2023[135] Community Engagement and Performance - Wintrust's subsidiary banks received a "satisfactory" or better rating from the OCC on their most recent Community Reinvestment Act performance evaluation[119] - The Federal Reserve finalized a rule on October 3, 2022, limiting debit interchange fees to 21 cents plus 0.05% of the transaction, effective July 1, 2023[132] - The Small Business Lending Rule requires covered lenders to collect and report information about small business credit applications, with compliance required by October 2024[127]

Financial Performance - Wintrust recorded net income of $164.2 million for Q3 2023, a 15% increase from $143.0 million in Q3 2022[185]. - Net income for Q3 2023 totaled $164.2 million, an increase of $21.2 million, or 15%, compared to Q3 2022[205]. - Comprehensive income for Q3 2023 was a loss of $4.4 million, significantly improved from a loss of $72.7 million in Q3 2022[185]. - Return on average common equity rose to 13.35% for Q3 2023, compared to 12.31% in Q3 2022, indicating improved profitability[191]. - The wealth management segment's net income for Q3 2023 was $8.5 million, down from $11.1 million in Q3 2022, with year-to-date net income totaling $23.6 million compared to $28.1 million in the same period last year[244]. Income and Expenses - Net interest income for Q3 2023 was $462.4 million, a 15% increase compared to $401.4 million in Q3 2022, driven by a $3.3 billion increase in average loans[187]. - Non-interest income rose to $112.5 million in Q3 2023, up from $101.5 million in Q3 2022, attributed to increased fees from covered call options and operating lease income[188]. - Non-interest expense totaled $330.1 million in Q3 2023, an 11% increase from $296.5 million in Q3 2022, primarily due to higher salaries and employee benefits[189]. - The efficiency ratio (GAAP) for Q3 2023 was 57.18%, compared to 58.59% in Q3 2022, indicating improved operational efficiency[206]. Asset and Loan Growth - The loan portfolio increased to $41.4 billion as of September 30, 2023, up from $39.2 billion at December 31, 2022, reflecting organic growth in various portfolios[186]. - Total assets increased by 6% to $55.6 billion as of September 30, 2023, compared to $52.4 billion at the end of 2022[191]. - Total earning assets for Q3 2023 were $51.01 billion, compared to $49.36 billion in Q2 2023 and $47.75 billion in Q3 2022[212]. - Total average loans reached $39.97 billion, accounting for 80% of total average earning assets, compared to $36.05 billion and 77% in the previous year[254]. Credit Losses and Non-Performing Loans - The allowance for credit losses was determined to be 380.69% of nonaccrual loans as of September 30, 2023, down from 414.09% as of June 30, 2023[269]. - As of September 30, 2023, total non-performing loans amounted to $133.1 million, an increase from $108.7 million as of June 30, 2023, representing a 22.4% increase[269]. - The total allowance for credit losses for commercial and commercial real estate loans increased to $367.2 million as of September 30, 2023, compared to $286.0 million in 2022[261]. - The community banking segment recorded a provision for credit losses of $16.7 million for Q3 2023, compared to $3.6 million in Q3 2022, reflecting a significant increase due to macroeconomic deterioration and loan growth[241]. Deposits and Funding - Total deposits grew to $44.99 billion as of September 30, 2023, a 5% increase from $42.8 billion at the end of 2022[191]. - Brokered deposits as of September 30, 2023, were $3.69 billion, representing 8.2% of total deposits[281]. - The company had approximately $15.3 billion of uninsured deposits as of September 30, 2023, representing about 28% of total deposits[283]. - Total funding as of September 30, 2023, was $48.7 billion, an increase from $46.3 billion at September 30, 2022[245]. Capital and Regulatory Environment - The Tier 1 capital ratio as of September 30, 2023, was 10.2%, up from 9.9% a year earlier, indicating a strengthening of the company's capital position[288]. - The company emphasizes the importance of its ability to raise additional capital on acceptable terms when needed[299]. - Regulatory changes may impact the Company's ability to market products and operate its mortgage business profitably[299]. - The Company is subject to increased costs of compliance and heightened regulatory capital requirements[299]. Market and Economic Conditions - Key macroeconomic variables, such as the Baa corporate credit spread, significantly impact the estimate of allowance for credit losses[202]. - The severity and duration of the COVID-19 pandemic continue to pose risks to the Company's financial results and operations[299]. - Disruptions in capital markets may lower fair values for the Company's investment portfolio[299].

Financial Performance - Wintrust recorded net income of $154.8 million for Q2 2023, a 64% increase from $94.5 million in Q2 2022[190] - Net income for Q2 2023 was $154.8 million, a 64% increase from $94.6 million in Q2 2022[210] - Return on average common equity improved to 12.79% in Q2 2023, up from 8.53% in Q2 2022, indicating enhanced profitability[196] - Return on average common equity (annualized) was 12.79% for Q2 2023, down from 15.67% in Q2 2022[210] Loan and Asset Growth - The loan portfolio increased to $41.0 billion at June 30, 2023, up from $39.2 billion at December 31, 2022, reflecting organic growth in various portfolios[191] - Total assets grew by 7% to $54.3 billion at June 30, 2023, compared to $51.0 billion at June 30, 2022[196] - Total average assets increased to $52.34 billion, reflecting a growth from $49.43 billion in the same period last year[259] - Total earning assets increased to $49,086,918 thousand in June 2023 from $46,517,043 thousand in June 2022, with a net interest margin of 5.51% compared to 3.04% in the previous year[219] Interest Income and Margin - Net interest income rose to $447.5 million in Q2 2023, a 32% increase compared to $337.8 million in Q2 2022, driven by a $4.2 billion increase in average loans[192] - Net interest income for Q2 2023 was $457.995 million, compared to $447.537 million in Q2 2022, reflecting a growth of 1.03%[210] - The net interest margin improved to 3.64% in Q2 2023, up 72 basis points from 2.92% in Q2 2022, due to higher yields on earning assets[192] - The net interest margin (GAAP) for Q2 2023 was 3.64%, down from 3.81% in Q2 2022[210] Non-Interest Income and Expenses - Non-interest income totaled $113.0 million in Q2 2023, compared to $102.9 million in Q2 2022, with no losses on investment securities in Q2 2023[193] - Non-interest income for Q2 2023 was $107.769 million, a decrease from $113.030 million in Q2 2022[210] - Non-interest expense increased by 11% to $320.6 million in Q2 2023, primarily due to higher salaries, employee benefits, and marketing expenses[194] - Total non-interest expense increased by $46.8 million, or 8%, to $619.8 million for the six months ended June 30, 2023, compared to $572.9 million in the same period of 2022[1][4] Deposits and Funding - Total deposits increased to $44.0 billion at June 30, 2023, a 3% rise from $42.6 billion at June 30, 2022[196] - Total funding at June 30, 2023, was $47.4 billion, up from $44.9 billion at June 30, 2022[247] - Brokered deposits increased to $4.1 billion, representing 9.3% of total deposits as of June 30, 2023, compared to 4.2% in the previous year[287] - The company had approximately $14.1 billion of uninsured deposits as of June 30, 2023, with $2.4 billion being fully collateralized[289] Credit Losses and Allowances - The allowance for credit losses is critical, with 82% of total assets in loan and held-to-maturity debt securities[206] - The allowance for credit losses at the end of the period was $387.4 million, compared to $312.1 million in the previous year[280] - The allowance for loan and investment security losses was $302.63 million in Q2 2023, compared to $282.70 million in Q1 2023 and $260.55 million in Q2 2022[218] - The total allowance for credit losses is based on a comprehensive analysis of the loan portfolio, considering economic and industry factors[278] Market and Economic Conditions - The company anticipates potential impacts on its financial condition from economic conditions, interest rate changes, and competitive pressures in the financial services sector[303] - The ongoing COVID-19 pandemic continues to pose risks to the company's financial results and operations[305] - Regulatory changes could impact the company's ability to market products and operate its mortgage business profitably[305] Management and Strategy - The Company is committed to maintaining capital levels above the "Well Capitalized" standards established by the Federal Reserve[299] - The Company plans to continue evaluating liquidity sources, including management of availability with the FHLB and FRB[301] - Management continues to actively monitor loan portfolios to identify problem credits in a timely manner, amid ongoing macroeconomic uncertainty[275] Risks and Challenges - The company faces risks from security breaches, including hacking and malware, which could adversely affect its operations[305] - Increased costs are anticipated due to the need to protect customers from the impact of stolen debit card information[305] - The company is at risk of losing customers due to technological changes that allow financial transactions without traditional banking[305] - The company must navigate the challenges of transitioning from LIBOR to an alternative benchmark rate for transactions[305]

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 _________________________________________ FORM 10-Q _________________________________________ ☑ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 31, 2023 OR TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 ☐ For the transition period from to Commission File Number 001-35077 _______________________________ ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-K ☑ Annual Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 For the fiscal year ended December 31, 2022 ☐ Transition Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 For the Transition Period from to Commission File Number 001-35077 Wintrust Financial Corporation (Exact name of registrant as specified in its charter) (State or other jurisdiction of incorporation or organi ...