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Exhibit 99.1

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

News Release



FOR IMMEDIATE RELEASE		January 24, 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 FOURTH QUARTER 2010
NET INCOME OF $14.2 MILLION AND FULL YEAR 2010 NET INCOME OF $63.3 MILLION

LAKE FOREST, ILLINOIS—Wintrust Financial Corporation (“Wintrust” or “the Company”) (Nasdaq WTFC) announced net income of $14.2 million or $(0.06) per diluted common share for the quarter ended December 31, 2010, and $63.3 million or $1.02 per diluted common share for the full year of 2010. The fourth quarter of 2010 and full year 2010 results include a non-cash deemed preferred stock dividend of $11.4 million. Fourth quarter 2010 net income per diluted common share was reduced by $0.33 as a result, while full year 2010 net income per diluted common share was reduced by $0.36. This was recorded as a result of the Company’s full repurchase of its TARP Capital Purchase Program preferred stock (“TARP”) (see “Capital” section later in this document) on December 22, 2010.

The Company’s total assets of $14.0 billion at December 31, 2010 increased $1.8 billion from December 31, 2009. Total deposits as of December 31, 2010 were $10.8 billion, an increase of $886.6 million from December 31, 2009. Noninterest bearing deposits increased by $336.9 million or 39% since December 31, 2009, while NOW, money market and savings deposits increased $553.5 million or 16% during the same time period. Total loans, including loans held for sale and excluding covered loans, were $10.0 billion as of December 31, 2010, an increase of $1.3 billion over December 31, 2009. Commercial real-estate loans as a percentage of total loans declined to 34% at December 31, 2010, down from 39% at December 31, 2009.

Edward J. Wehmer, President and Chief Executive Officer, commented “We are pleased to report net income of $14.2 million for the fourth quarter of 2010 and $63.3 million for the full year 2010. Core pre-tax earnings increased 60% in 2010, to $196.5 million from $122.8 million in 2009. The annualized run rate of core pre-tax earnings, based on fourth quarter results, improved to $232.7 million.

The fourth quarter of 2010 was an extremely active time for the Company. In December, we completed a capital offering that generated $327.5 million of net cash proceeds and added $284.2 million to our capital base. This allowed us to fully repurchase our $250 million of TARP securities from the U.S. Treasury in December. Coupled with our March 2010 capital offering that raised $210.3 million, we increased our total risk-based capital ratio to 13.9% while increasing our asset size by $1.8 billion.”

Mr. Wehmer noted, “The Company’s net interest margin for the quarter improved to 3.46% from 3.22% in the third quarter of 2010. For the full year of 2010, the Company’s net interest margin increased to 3.37% from 3.01% in 2009. The 36 basis point improvement was primarily caused by:

	•		58 basis point improvement from lower re-pricing of retail deposits

	•		23 basis point improvement due to an increase in the accretion on the purchased life insurance premium finance portfolio as a result of prepayments

	•		10 basis point improvement as a result of lower wholesale funding costs

	Partially offset by:

	•		33 basis point reduction due to the combination of higher levels of liquidity management assets and lower yields on those assets due to a higher than normal short-term liquidity position during this challenging interest rate environment

	•		17 basis point reduction due to lower yield on loans

	•		Five basis point reduction due to lower contribution from net free funds.”

Commenting on credit, Mr. Wehmer said, “The Company continues to aggressively identify potential non-performing credits and take actions on existing non-performing credits.” Mr. Wehmer continued, commenting that excluding the impact of the covered loans acquired in the FDIC-assisted transactions: “total non-performing assets as a percent of total assets has remained at very stable levels for the past 5 quarters. During the fourth quarter, the Company recorded a provision for credit losses of $28.8 million, net charge-offs of $23.5 million, and OREO losses on sales and valuation adjustments of $5.5 million. Our allowance for loan losses increased to $113.9 million or 1.19% of total loans.” Commenting on the Company’s deposit base, Mr. Wehmer noted that “the Company’s deposit mix is more balanced and less reliant on single product retail certificate of deposit customers and wholesale deposits than it was at December 31, 2009.”

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

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


										% or⁽⁴⁾			% or
										basis point (bp)			basis point (bp)
										change			change
	Three Months Ended									from			from
	December 31,			September 30,			December 31,			3rd Quarter			4th Quarter
	2010			2010			2009			2010			2009
Net income	$	14,205		$	20,098		$	28,167			(29)	%		(50)	%
Net income (loss) per common share — diluted	$	(0.06	)	$	0.47		$	0.90			(113)	%		(107)	%

Core pre-tax earnings ⁽²⁾	$	58,666		$	48,074		$	39,931			22	%		47	%
Net revenue ⁽¹⁾	$	157,138		$	157,636		$	172,022			—	%		(9)	%
Net interest income	$	112,677		$	102,980		$	86,934			9	%		30	%

Net interest margin⁽²⁾		3.46	%		3.22	%		3.10	%	24		bp	36		bp
Net overhead ratio⁽³⁾		1.73	%		1.28	%		0.17	%	45		bp	156		bp
Return on average assets		0.40	%		0.57	%		0.92	%	(17		)bp	(52		)bp
Return on average common equity		(0.66	)%		5.44	%		10.97	%	(610		)bp	(1,163		)bp

At end of period
Total assets	$	13,968,074		$	14,100,368		$	12,215,620			(4	)%		14	%
Total loans, excluding covered loans	$	9,599,886		$	9,461,155		$	8,411,771			6	%		14	%
Total loans, including loans held-for-sale, excluding covered loans	$	9,971,333		$	9,781,595		$	8,687,486			8	%		15	%
Total deposits	$	10,803,673		$	10,962,239		$	9,917,074			(6	)%		9	%
Total shareholders’ equity	$	1,436,549		$	1,398,912		$	1,138,639			11	%		26	%


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

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

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

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

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

Items Impacting Comparative Financial Results: Acquisitions, Securitization and Capital

Acquisitions

On August 17, 2010, the Company announced that its wholly-owned subsidiary bank, Wheaton Bank & Trust Company (“Wheaton”) signed a Branch Purchase and Assumption Agreement whereby it agreed to acquire a branch of First National Bank of Brookfield (“Naperville”) 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 Bank & Trust Company acquired approximately $23 million of deposits, approximately $11 million of performing loans, the property, bank facility and various other assets.

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

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

In summary, in the FDIC-assisted transactions:

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

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

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

The Company recognized a gain of $6.6 million in the third quarter of 2010 and $250,000 in the fourth quarter of 2010 (due to final valuation adjustments) on the Ravenswood acquisition. The Company recognized gains of $22.3 million and $4.2 million in the second quarter of 2010 on the Wheatland and Lincoln Park acquisitions, respectively. These gains are shown as a gain on bargain purchases, which is a component of

non-interest income, on the Company’s statements of income. The Company recorded goodwill of $1.6 million on the Naperville acquisition.

Loans comprise the majority of the assets acquired in the three 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.

In 2009, the Company announced that its indirect, wholly-owned subsidiary, First Insurance Funding Corp. (“FIFC”) completed the purchase of a majority of the U.S. life insurance premium finance assets of A.I. Credit Corp. and A.I. Credit Consumer Discount Company (“the seller”), subsidiaries of American International Group, Inc. In doing so, FIFC acquired one of the largest life insurance premium finance portfolios in the industry, as well as certain other assets related to the life insurance premium finance business and assumed certain related liabilities. An aggregate unpaid principal balance of $1.0 billion was purchased for $745.9 million in cash.

In connection with the purchase of the life insurance premium finance business, the Company recognized a $10.9 million gain in the first quarter of 2010, a $43.0 million gain in the fourth quarter of 2009 and a $113.1 million gain in the third quarter of 2009. As of March 31, 2010, the full amount of bargain purchase gain was recognized into income. The following table presents a summary of the discount components for the life insurance premium finance portfolio purchase as of December 31, 2010 and shows the changes in the balances from December 31, 2009:

Purchased Loan Portfolio
Summary of Acquisition


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

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

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

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

- Accretion (effective yield method)		(5,139	)		—
- Accretion recognized as accounts prepay		(1,672	)		(1,680	)
- Reclassification 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

On April 20, 2009, Wintrust Capital Management (formerly known as Wayne Hummer Asset Management Company) completed its purchase and assumption of certain assets and liabilities of Advanced Investment Partners, LLC (“AIP”). AIP is an investment management firm specializing in the active management of domestic equity investment strategies. The impact related to the AIP transaction is included in Wintrust’s consolidated financial results only since the effective date of acquisition.

Securitization

Sale of Loans

On September 11, 2009, Wintrust’s indirect, wholly-owned subsidiary, FIFC Premium Funding I, LLC (the “Issuer”), sold $600,000,000 aggregate principal amount of its Series 2009-A Premium Finance Asset Backed Notes,

Class A (the “Notes”). The Notes were issued in a securitization transaction sponsored by First Insurance Funding Corp.

The Notes bear interest at an annual rate equal to one-month LIBOR plus 1.45% and have an expected average term of 2.93 years; provided, however, that the entire unpaid balance of the Notes shall be due and payable in full on February 17, 2014. At the time of issuance, the Notes were eligible collateral under the Federal Reserve Bank of New York’s Term Asset-Backed Securities Loan Facility (“TALF”). The Issuer’s obligations under the Notes are secured by revolving loans made to buyers of property and casualty insurance policies to finance the related premiums payable by the buyers to the insurance companies for the policies. The premium finance loans will be transferred from time to time by FIFC to FIFC Funding I, LLC (the “Depositor”) and by the Depositor to the Issuer.

Change in Accounting Treatment

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

Capital

On December 22, 2010, the Company repurchased all 250,000 shares of its Fixed Rate Cumulative Perpetual Preferred Stock, Series B (the “Preferred Stock”), which it issued to the U.S. Department of Treasury under the TARP Capital Purchase Program. The Preferred Stock was repurchased at a price of $251.3 million, which included accrued and unpaid dividends of $1.3 million. The repurchase of the Preferred Stock resulted in a non-cash charge that reduced net income applicable to common shares in the fourth quarter of 2010 by approximately $11.4 million. This amount represents the difference between the repurchase price and the carrying amount of the Preferred Stock, or the accelerated accretion of the applicable discount on the preferred shares.

In December 2010, the Company sold 3.66 million shares of common stock at $30.00 per share in a public offering. The Company received net proceeds of $104.8 million after deducting underwriting discounts and

commissions and estimated offering expenses. At the same time the Company sold 4.6 million 7.50% tangible equity units (“TEU”) at a public offering price of $50.00 per unit. The Company received net proceeds of $222.7 million after deducting underwriting discounts and commissions and estimated offering expenses. In total, the Company received net proceeds of $327.5 million from the December offerings.

In March 2010, the Company sold 6.67 million shares of common stock at $33.25 per share in a public offering. The Company received net proceeds of $210.3 million after deducting underwriting discounts and commissions and estimated offering expenses.

As of December 31, 2010, the Company’s estimated capital ratios were 13.9% for total risk-based capital, 12.6% for tier 1 risk-based capital and 10.6% for leverage, well above the well capitalized guidelines. Additionally, the Company’s tangible common equity ratio was 8.0% at December 31, 2010.

Financial Performance Overview — Fourth Quarter of 2010

For the fourth quarter of 2010, net interest income totaled $112.7 million, an increase of $25.7 million as compared to the fourth quarter of 2009 and an increase of $9.7 million as compared to the third quarter of 2010. Average earning assets for the fourth quarter of 2010 increased by $1.8 billion compared to the fourth quarter of 2009. Average earning asset growth over the past 12 months was primarily a result of the $1.2 billion increase in average loans and $274.8 million increase in average liquidity management assets. Growth in the life insurance premium finance portfolio and a change in accounting for the commercial premium finance securitization facility accounted for $844 million of the total average loan growth over the past 12 months, while the three FDIC-assisted acquisitions accounted for $338 million of average covered loan growth. The average earning asset growth of $1.8 billion over the past 12 months was funded by a $473 million increase in the average balances of savings, NOW, MMA and Wealth Management deposits, an increase in the average balance of net free funds of $384 million, an increase in the average balance of retail certificates of deposit of $273 million, an increase of $600 million due to the secured borrowing notes to the securitization investors and an increase in the average balance of brokered certificates of deposit and other wholesale borrowings of $60 million.

The net interest margin for the fourth quarter of 2010 was 3.46%, compared to 3.10% in the fourth quarter of 2009 and 3.22% in the third quarter of 2010. The 24 basis point increase in net interest margin in the fourth quarter of 2010 compared to the third quarter of 2010 was primarily caused by an additional $6.2 million increase in

the accretion on the purchased life insurance portfolio resulting from increased prepayments in the fourth quarter (increased net interest margin by 19 basis points), lower costs for interest-bearing deposits (increased net interest margin by 12 basis points), lower yields on loans (reduced net interest margin by five basis points), lower yields on liquidity management assets (reduced net interest margin by one basis point), and a lower contribution from net free funds (decreased net interest margin by one basis point).

Non-interest income totaled $44.5 million in the fourth quarter of 2010, decreasing $40.6 million, or 48%, compared to the fourth quarter of 2009 and decreasing $10.2 million, or 19%, compared to the third quarter of 2010. Mortgage banking revenue increased $6.2 million when compared to the fourth quarter of 2009 as loans originated and sold to the secondary market were $1.3 billion in the fourth quarter of 2010 compared to $953 million in the fourth quarter of 2009 and $1.1 billion in the third quarter of 2010 (see “Non-Interest Income” section later in this document for further detail). Also, net gains on available-for-sale securities decreased $483,000 in the fourth quarter of 2010 compared to the prior year quarter and decreased $9.1 million compared to the third quarter of 2010, primarily related to the sale during the earlier period of certain collateralized mortgage obligations. Early in July 2010, we liquidated approximately $160 million of collateralized mortgage obligations, recognizing a $7.7 million gain on available-for-sale securities in the third quarter of 2010. Trading income decreased by $3.8 million in the fourth quarter of 2010 when compared to the fourth quarter of 2009 primarily due to the realization in the prior year of larger market value increases on certain collateralized mortgage obligations held in trading.

Non-interest expense totaled $106.2 million in the fourth quarter of 2010, increasing $15.9 million, or 18%, compared to the fourth quarter of 2009 and increasing $6.5 million compared to the third quarter of 2010. The increase compared to the fourth quarter of 2009 was primarily attributable to an $11.1 million increase in salaries and employee benefits. The increase in salaries and employee benefits was attributable to a $6.3 million increase in bonus and commissions as variable pay based revenue increased (primarily in our mortgage banking and wealth management businesses), a $3.5 million increase in salaries caused by the additional employees from the three FDIC-assisted transactions and larger staffing related to Company growth, and a $1.3 million increase from employee benefits (primarily related to health plans and payroll taxes). Additionally, OREO related expenses increased $2.1 million and professional fees increased $1.2 million, primarily related to increased legal costs related to non-performing assets and recent bank acquisitions.

Financial Performance Overview — Full Year 2010

The net interest margin for 2010 was 3.37%, compared to 3.01% in 2009. The increase in the net interest margin in 2010 compared to 2009 was primarily caused by lower costs for interest-bearing deposits (increased net interest margin by 58 basis points), an additional $24.4 million of accretion on the purchased life insurance portfolio as more prepayments occurred throughout 2010 (increased net interest margin by 23 basis points) and lower costs for wholesale funding (increased net interest margin by 10 basis points), offset by higher balances and lower yields on liquidity management assets, including the negative impact of selling certain collateralized mortgage obligations, (reduced net interest margin by 33 basis points), lower yields on loans (reduced net interest margin by 17 basis points) and lower contribution from net free funds (reduced net interest margin by five basis points). Average earning assets for 2010 increased by $2.0 billion compared to 2009. Average earning asset growth for 2010 compared to 2009 was primarily a result of the $1.1 billion increase in average loans, a $567 million increase in liquidity management assets and $232 million of covered loans. The acquisition of a life insurance premium finance portfolio and subsequent growth in this product accounted for $819 million of the total average loan growth for 2010 compared to 2009. The average earning asset growth of $2.0 billion was funded by a $653 million increase in the average balances of savings, NOW, MMA and Wealth Management deposits, an increase in the average balance of net free funds of $422 million, an increase in the average balance of retail certificates of deposit of $284 million, and an increase of $600 million due to the secured borrowing notes to the securitization investors.

Non-interest income totaled $192.2 million in 2010, decreasing $125.5 million, or 40%, compared to 2009. The decrease was primarily attributable to the inclusion of the $156.0 million of bargain purchase gains recorded during 2009 relating to life insurance premium finance loan acquisition in 2009. In comparison, during 2010, the Company recorded bargain purchase gains of $44.2 million as described earlier under “Acquisitions.” Wealth management revenue contributed an $8.6 million increase in non-interest income as improvements in the equity markets overall has led to a 30% increase in wealth management revenue during 2010 compared to 2009. Mortgage banking revenue decreased $7.1 million when compared to 2009. Expenses recognized for the estimated liability associated with mortgage loans previously sold with recourse to the secondary market were higher in the current year due to increased repurchase demands from investors. The Company recognized $11.0 million of recourse obligation expense in 2010 compared to $900,000 in 2009. Also, net gains on available-for-sale securities increased $10.1 million in the current year, primarily related to the sale of certain collateralized mortgage obligations. Trading

gains decreased by $21.6 million in the current year primarily due to realizing larger market value increases in the prior year on certain collateralized mortgage obligations held in trading, that were sold in July 2010.

Non-interest expense totaled $382.5 million in 2010, increasing $38.4 million, or 11%, compared to 2009. The increase compared to 2009 was primarily attributable to a $28.9 million increase in salaries and employee benefits. The increase in salaries and employee benefits was attributable to a $12.6 million increase in bonus and commissions as variable pay based revenue increased (primarily in our mortgage banking and wealth management businesses), a $11.4 million increase in salaries caused by the additional employees from the three FDIC-assisted transactions and larger staffing as the Company grows, and a $4.9 million increase from employee benefits (primarily related to health plan and payroll taxes). Additionally, professional fees increased $3.0 million primarily related to increased legal costs related to non-performing assets and recent bank acquisitions, and miscellaneous expenses increased $4.0 million. Data processing expense increased $2.4 million as a result of higher volumes and conversion related expenses associated with FDIC-assisted transactions. These increases were partially offset by a $3.2 million reduction in FDIC insurance expenses as the FDIC imposed an industry-wide special assessment on financial institutions in the prior year second quarter.

Financial Performance Overview — Credit Quality

Non-performing loans, excluding covered loans, totaled $141.8 million, or 1.48% of total loans, at December 31, 2010, compared to $134.3 million, or 1.42% of total loans, at September 30, 2010 and $131.8 million, or 1.57% of total loans, at December 31, 2009. OREO, excluding covered OREO, of $71.2 million at December 31, 2010 decreased $5.5 million compared to $76.7 million at September 30, 2010 and decreased $9.0 million compared to $80.2 million at December 31, 2009.

Since the latter half of 2009, management has focused on significantly lowering the Company’s level of non-performing loans. This was accomplished through a focus on gaining control or obtaining possession of collateral from borrowers whose loans were in non-accrual status. Progress towards this goal enabled a number of these properties to be transferred to OREO. The properties the Company obtains via foreclosure or via deed in lieu of foreclosure are aggressively marketed for sale. Additionally, beginning in the third quarter of 2009, management has worked with certain borrowers to restructure current loans. These actions help these borrowers maintain their homes or businesses and keep these loans in an accruing status for the Company. As of December 31, 2010, a total

of $101.2 million of outstanding loan balances qualified as restructured loans, with $81.1 million of these modified loans in an accruing status.

The provision for credit losses totaled $28.8 million for the fourth quarter of 2010 compared to $25.5 million for the third quarter of 2010 and $38.6 million in the fourth quarter of 2009. Net charge-offs as a percentage of loans, excluding covered loans, for the fourth quarter of 2010 totaled 96 basis points on an annualized basis compared to 161 basis points on an annualized basis in the fourth quarter of 2009 and 89 basis points on an annualized basis in the third quarter of 2010. In the second quarter of 2010, a fraud perpetrated against a number of premium finance companies in the industry, including the property and casualty division of our premium financing subsidiary, increased both our net charge-offs and our provision for loan losses by $15.7 million.

The allowance for credit losses at December 31, 2010 totaled $118.0 million, or 1.23% of total loans, excluding covered loans, compared to $112.8 million, or 1.19% of total loans, at September 30, 2010 and $101.8 million, or 1.21% of total loans, at December 31, 2009.

WINTRUST FINANCIAL CORPORATION
Selected Financial Highlights


	Three Months Ended						Twelve Months Ended
	December 31,						December 31,
	2010			2009			2010			2009

Selected Financial Condition Data (at end of period):
Total assets	$	13,968,074		$	12,215,620
Total loans, excluding covered loans		9,599,886			8,411,771
Total deposits		10,803,673			9,917,074
Junior subordinated debentures		249,493			249,493
Total shareholders’ equity		1,436,549			1,138,639

Selected Statements of Income Data:
Net interest income	$	112,677		$	86,934		$	415,836		$	311,876
Net revenue ⁽¹⁾		157,138			172,022			607,996			629,523
Core pre-tax earnings ⁽²⁾		58,666			39,931			196,544			122,804
Net income		14,205			28,167			63,329			73,069
Net income (loss) per common share — Basic	$	(0.06	)	$	0.96		$	1.08		$	2.23
Net income (loss) per common share — Diluted	$	(0.06	)	$	0.90		$	1.02		$	2.18

Selected Financial Ratios and Other Data:
Performance Ratios:
Net interest margin ⁽²⁾		3.46	%		3.10	%		3.37	%		3.01	%
Non-interest income to average assets		1.24	%		2.77	%		1.42	%		2.78	%
Non-interest expense to average assets		2.97	%		2.94	%		2.82	%		3.01	%
Net overhead ratio ⁽³⁾		1.73	%		0.17	%		1.40	%		0.23	%
Efficiency ratio^{(2) (4)}		67.48	%		52.54	%		63.77	%		54.44	%
Return on average assets		0.40	%		0.92	%		0.47	%		0.64	%
Return on average common equity		(0.66	)%		10.97	%		3.01	%		6.70	%

Average total assets	$	14,199,351		$	12,189,096		$	13,556,612		$	11,415,322
Average total shareholders’ equity		1,442,754			1,126,594			1,352,135			1,081,792
Average loans to average deposits ratio (excluding covered loans)		89.0	%		86.9	%		91.1	%		90.5	%
Average loans to average deposits ratio (including covered loans)		92.1	%		86.9	%		93.4	%		90.5	%

*Common Share Data at end of period:*
Market price per common share	$	33.03		$	30.79
Book value per common share ⁽²⁾	$	32.73		$	35.27
Tangible common book value per share ⁽²⁾	$	25.80		$	23.22
Common shares outstanding		34,864,068			24,206,819

Other Data at end of period: ⁽⁹⁾
Leverage Ratio⁽⁵⁾		10.6	%		9.3	%
Tier 1 capital to risk-weighted assets ⁽⁵⁾		12.6	%		11.0	%
Total capital to risk-weighted assets⁽⁵⁾		13.9	%		12.4	%
Tangible common equity ratio (TCE) ⁽²⁾⁽⁸⁾		8.0	%		4.7	%
Allowance for credit losses ⁽⁶⁾	$	118,037		$	101,831
Credit discounts on purchased premium finance receivables — life insurance⁽⁷⁾	$	23,227		$	37,323
Non-performing loans	$	142,132		$	131,804
Allowance for credit losses to total loans ⁽⁶⁾		1.23	%		1.21	%
Non-performing loans to total loans		1.48	%		1.57	%
Number of:
Bank subsidiaries		15			15
Non-bank subsidiaries		8			8
Banking offices		86			78


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

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

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

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

		A lower ratio indicates more efficient revenue generation.

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

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

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

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

⁽⁹⁾		Asset quality ratios exclude covered loans.

WINTRUST FINANCIAL CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CONDITION


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

Assets
Cash and due from banks	$	153,690		$	155,067		$	135,133
Federal funds sold and securities purchased under resale agreements		18,890			88,913			23,483
Interest-bearing deposits with other banks		865,575			1,224,584			1,025,663
Available-for-sale securities, at fair value		1,496,302			1,324,179			1,255,066
Trading account securities		4,879			4,935			33,774
Brokerage customer receivables		24,549			25,442			20,871
Federal Home Loan Bank and Federal Reserve Bank stock, at cost		82,407			80,445			73,749
Loans held-for-sale		371,447			320,440			275,715
Loans, net of unearned income, excluding covered loans		9,599,886			9,461,155			8,411,771
Covered loans		334,353			353,840			—

Total loans		9,934,239			9,814,995			8,411,771
Less: Allowance for loan losses		113,903			110,432			98,277

Net loans		9,820,336			9,704,563			8,313,494
Premises and equipment, net		363,696			353,445			350,345
FDIC indemnification asset		118,182			161,640			—
Accrued interest receivable and other assets		354,356			365,496			416,678
Goodwill		281,190			278,025			278,025
Other intangible assets		12,575			13,194			13,624

Total assets	$	13,968,074		$	14,100,368		$	12,215,620


Liabilities and Shareholders’ Equity
Deposits:
Non-interest bearing	$	1,201,194		$	1,042,730		$	864,306
Interest bearing		9,602,479			9,919,509			9,052,768

Total deposits		10,803,673			10,962,239			9,917,074
Notes payable		1,000			1,000			1,000
Federal Home Loan Bank advances		415,643			414,832			430,987
Other borrowings		260,619			241,522			247,437
Secured borrowings — owed to securitization investors		600,000			600,000			—
Subordinated notes		50,000			55,000			60,000
Junior subordinated debentures		249,493			249,493			249,493
Trade date securities payable		—			2,045			—
Accrued interest payable and other liabilities		151,097			175,325			170,990

Total liabilities		12,531,525			12,701,456			11,076,981


Shareholders’ Equity:
Preferred stock		49,640			287,234			284,824
Common stock		34,864			31,145			27,079
Surplus		965,203			682,318			589,939
Treasury stock		—			(51	)		(122,733	)
Retained earnings		392,354			394,323			366,152
Accumulated other comprehensive (loss) income		(5,512	)		3,943			(6,622	)

Total shareholders’ equity		1,436,549			1,398,912			1,138,639

Total liabilities and shareholders’ equity	$	13,968,074		$	14,100,368		$	12,215,620

WINTRUST FINANCIAL CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED)


	Three Months Ended					Years Ended
	December 31,					December 31,
(In thousands, except per share data)	2010			2009		2010		2009

Interest income
Interest and fees on loans	$	144,652		$	122,140	$	547,896	$	465,777
Interest bearing deposits with banks		1,342			1,369		5,170		3,574
Federal funds sold and securities purchased under resale agreements		39			38		157		271
Securities		7,236			12,672		36,904		55,649
Trading account securities		11			20		394		106
Brokerage customer receivables		170			143		655		515
Federal Home Loan Bank and Federal Reserve Bank stock		512			447		1,931		1,722

Total interest income		153,962			136,829		593,107		527,614

Interest expense
Interest on deposits		27,853			38,998		123,779		171,259
Interest on Federal Home Loan Bank advances		4,038			4,510		16,520		18,002
Interest on notes payable and other borrowings		1,631			1,663		5,943		7,064
Interest on secured borrowings — owed to securitization investors		3,089			—		12,366		—
Interest on subordinated notes		233			286		995		1,627
Interest on junior subordinated debentures		4,441			4,438		17,668		17,786

Total interest expense		41,285			49,895		177,271		215,738

Net interest income		112,677			86,934		415,836		311,876
Provision for credit losses		28,795			38,603		124,664		167,932

Net interest income after provision for credit losses		83,882			48,331		291,172		143,944

Non-interest income
Wealth management		10,108			8,047		36,941		28,357
Mortgage banking		22,686			16,495		61,378		68,527
Service charges on deposit accounts		3,346			3,437		13,433		13,037
Gain on sales of commercial premium finance receivables		—			4,429		—		8,576
Gains (losses) on available-for-sale securities, net		159			642		9,832		(268	)
Gain on bargain purchases		250			42,951		44,231		156,013
Trading gains		611			4,411		5,165		26,788
Other		7,301			4,676		21,180		16,617

Total non-interest income		44,461			85,088		192,160		317,647

Non-interest expense
Salaries and employee benefits		59,031			47,955		215,766		186,878
Equipment		4,384			4,097		16,529		16,119
Occupancy, net		5,927			6,124		24,444		23,806
Data processing		4,388			3,404		15,355		12,982
Advertising and marketing		1,881			1,366		6,315		5,369
Professional fees		4,775			3,556		16,394		13,399
Amortization of other intangible assets		719			744		2,739		2,784
FDIC insurance		4,572			4,731		18,028		21,199
OREO expenses, net		7,384			5,293		19,331		18,963
Other		13,140			13,047		47,624		42,588

Total non-interest expense		106,201			90,317		382,525		344,087

Income before taxes		22,142			43,102		100,807		117,504
Income tax expense		7,937			14,935		37,478		44,435

Net income	$	14,205		$	28,167	$	63,329	$	73,069

Preferred stock dividends and discount accretion	$	16,175		$	4,888		31,004	$	19,556

Net income (loss) applicable to common shares	$	(1,970	)	$	23,279	$	32,325	$	53,513

Net income (loss) per common share — Basic	$	(0.06	)	$	0.96	$	1.08	$	2.23

Net income (loss) per common share — Diluted	$	(0.06	)	$	0.90	$	1.02	$	2.18

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

Weighted average common shares outstanding		32,015			24,166		30,057		24,010
Dilutive potential common shares		—			2,845		1,513		2,335

Average common shares and dilutive common shares		32,015			27,011		31,570		26,345

SUPPLEMENTAL FINANCIAL MEASURES/RATIOS

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

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

A reconciliation of certain non-GAAP performance measures and ratios used by the Company to evaluate and measure the Company’s performance to the most directly comparable GAAP financial measures is shown below:


	Three Months Ended															Years Ended
	December 31,			September 30,			June 30,			March 31,			December 31,			December 31,
(Dollars and shares in thousands)	2010			2010			2010			2010			2009			2010			2009

Calculation of Net Interest Margin and Efficiency Ratio
(A) Interest Income (GAAP)	$	153,962		$	147,401		$	149,248		$	142,496		$	136,829		$	593,107		$	527,614
Taxable-equivalent adjustment:
- Loans		79			85			90			80			99			334			462
- Liquidity management assets		326			324			366			361			406			1,377			1,720
- Other earning assets		—			7			5			5			9			17			38

Interest Income — FTE	$	154,367		$	147,817		$	149,709		$	142,942		$	137,343		$	594,835		$	529,834
(B) Interest Expense (GAAP)	$	41,285		$	44,421		$	44,934		$	46,631		$	49,895		$	177,271		$	215,738

Net interest income — FTE		113,082			103,396			104,775			96,311			87,448			417,564			314,096

(C) Net Interest Income (GAAP) (A minus B)	$	112,677		$	102,980		$	104,314		$	95,865		$	86,934		$	415,836		$	311,876

(D) Net interest margin (GAAP)		3.44	%		3.20	%		3.42	%		3.36	%		3.08	%		3.35	%		2.99	%
Net interest margin — FTE		3.46	%		3.22	%		3.43	%		3.38	%		3.10	%		3.37	%		3.01	%
(E) Efficiency ratio (GAAP)		67.65	%		67.20	%		59.90	%		60.79	%		52.70	%		63.95	%		54.64	%
Efficiency ratio — FTE		67.48	%		67.01	%		59.72	%		60.59	%		52.54	%		63.77	%		54.44	%

Calculation of Tangible Common Equity ratio (at period end)
Total shareholders’ equity	$	1,436,549		$	1,398,912		$	1,384,736		$	1,364,832		$	1,138,639
Less: Preferred stock		(49,640	)		(287,234	)		(286,460	)		(285,642	)		(284,824	)
Less: Intangible assets		(293,765	)		(291,219	)		(291,300	)		(291,003	)		(291,649	)

(F) Total tangible common shareholders’ equity	$	1,093,144		$	820,459		$	806,976		$	788,187		$	562,166


Total assets	$	13,968,074		$	14,100,368		$	13,708,560		$	12,839,978		$	12,215,620
Less: Intangible assets		(293,765	)		(291,219	)		(291,300	)		(291,003	)		(291,649	)

(G) Total tangible assets	$	13,674,309		$	13,809,149		$	13,417,260		$	12,548,975		$	11,923,971

Tangible common equity ratio (F/G)		8.0	%		5.9	%		6.0	%		6.3	%		4.7	%

Calculation of Core Pre-Tax Earnings
Income before taxes	$	22,142		$	32,385		$	20,790		$	25,490		$	43,102		$	100,807		$	117,504
Add: Provision for credit losses		28,795			25,528			41,297			29,044			38,603			124,664			167,932
Add: OREO expenses, net		7,384			4,767			5,843			1,337			5,293			19,331			18,963
Add: Recourse obligation on loans previously sold		1,365			1,432			4,721			3,452			937			10,970			937
Less: Gain on bargain purchases		(250	)		(6,593	)		(26,494	)		(10,894	)		(42,951	)		(44,231	)		(156,013	)
Less: Trading (gains) losses		(611	)		(210	)		1,617			(5,961	)		(4,411	)		(5,165	)		(26,788	)
Less: (Gains) losses on available-for-sale securities, net		(159	)		(9,235	)		(46	)		(392	)		(642	)		(9,832	)		268

Core pre-tax earnings	$	58,666		$	48,074		$	47,728		$	42,076		$	39,931		$	196,544		$	122,803


Calculation of book value per share
Total shareholders’ equity	$	1,436,549		$	1,398,912		$	1,384,736		$	1,364,832		$	1,138,639
Less: Preferred stock		(49,640	)		(287,234	)		(286,460	)		(285,642	)		(284,824	)

(H) Total common equity	$	1,386,909		$	1,111,678		$	1,098,276		$	1,079,190		$	853,815


Actual common shares outstanding		34,864			31,144			31,084			31,044			24,207
Add: TEU conversion shares		7,512			—			—			—			—

(I) Common shares used for book value calculation		42,376			31,144			31,084			31,044			24,207


Book value per share (H/I)	$	32.73		$	35.70		$	35.33		$	34.76		$	35.27
Tangible common book value per share (F/I)	$	25.80		$	26.34		$	25.96		$	25.39		$	23.22

LOANS

Loan Portfolio Mix and Growth Rates


										% Growth
										From ⁽¹⁾			From
	December 31,			September 30,			December 31,			September 30,			December 31,
(Dollars in thousands)	2010			2010			2009			2010			2009
Balance:
Commercial	$	2,049,326		$	1,952,791		$	1,743,208			20	%		18	%
Commercial real-estate		3,338,007			3,331,498			3,296,698			1			1
Home equity		914,412			919,824			930,482			(2	)		(2	)
Residential real-estate		353,336			342,009			306,296			13			15
Premium finance receivables — commercial		1,265,500			1,323,934			730,144			(18	)		73
Premium finance receivables — life insurance		1,521,886			1,434,994			1,197,893			24			27
Indirect consumer ⁽²⁾		51,147			56,575			98,134			(38	)		(48	)
Consumer and other		106,272			99,530			108,916			27			(2	)

Total loans, net of unearned income, excluding covered loans	$	9,599,886		$	9,461,155		$	8,411,771			6	%		14	%
Covered loans		334,353			353,840			—			(22	)		100

Total loans, net of unearned income	$	9,934,239		$	9,814,995		$	8,411,771			5	%		18	%


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

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

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


⁽¹⁾		Annualized

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

Commercial and Real-Estate Loans, excluding covered loans
As of December 31, 2010


								> 90 Days		Allowance
			%of					Past Due		For Loan
			Total					and Still		Losses
(Dollars in thousands)	Balance		Loans			Nonaccrual		Accruing		Allocation
Commercial:
Commercial and industrial	$	1,653,394		30.7	%	$	16,339	$	478	$	28,316
Franchise		119,488		2.2			—		—		1,153
Mortgage warehouse lines of credit		131,306		2.4			—		—		1,177
Community Advantage — homeowner associations		75,542		1.4			—		—		323
Aircraft		24,618		0.5			—		—		315
Other		44,978		0.8			43		—		493

Total commercial	$	2,049,326		38.0	%	$	16,382	$	478	$	31,777


Commercial Real-Estate:
Residential construction	$	95,947		1.8	%	$	10,010	$	—	$	2,597
Commercial construction		131,672		2.4			1,820		—		4,035
Land		260,189		4.8			37,602		—		14,261
Office		535,331		9.9			12,718		—		8,005
Industrial		500,301		9.3			3,480		—		5,213
Retail		510,527		9.5			3,265		—		5,985
Multi-family		290,954		5.4			4,794		—		5,479
Mixed use and other		1,013,086		18.9			20,274		—		16,915

Total commercial real-estate	$	3,338,007		62.0	%	$	93,963	$	—	$	62,490

Total commercial and commercial real-estate	$	5,387,333		100.0	%	$	110,345	$	478	$	94,267


Commercial real-estate — collateral location by state:
Illinois	$	2,695,581		80.8	%
Wisconsin		356,696		10.7

Total primary markets	$	3,052,277		91.5	%

Florida		52,457		1.6
Arizona		42,100		1.3
Indiana		47,828		1.4
Other (no individual state greater than 0.5%)		143,345		4.2

Total	$	3,338,007		100.0	%

DEPOSITS

Deposit Portfolio Mix and Growth Rates


										% Growth
										From ⁽¹⁾			From
	December 31,			September 30,			December 31,			September 30,			December 31,
(Dollars in thousands)	2010			2010			2009			2010			2009
Balance:
Non-interest bearing	$	1,201,194		$	1,042,730		$	864,306			60	%		39	%
NOW		1,561,507			1,551,749			1,415,856			2			10
Wealth Management deposits ⁽²⁾		658,660			710,435			971,113			(29	)		(32	)
Money Market		1,759,866			1,746,168			1,534,632			3			15
Savings		744,534			713,823			561,916			17			32
Time certificates of deposit		4,877,912			5,197,334			4,569,251			(24	)		7

Total deposits	$	10,803,673		$	10,962,239		$	9,917,074			(6	)%		9	%


Mix:
Non-interest bearing		11	%		10	%		9	%
NOW		15			14			14
Wealth Management deposits ⁽²⁾		6			6			10
Money Market		16			16			15
Savings		7			7			6
Time certificates of deposit		45			47			46

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
As of December 31, 2010


											Weighted-
	Non-										Average
	Interest		Savings								Rate of
	Bearing		and				Time				Maturing Time
	and		Money		Wealth		Certificates		Total		Certificates
(Dollars in thousands)	NOW⁽¹⁾		Market ⁽¹⁾		Mgt ^{(1) (2)}		of Deposit		Deposits		of Deposit
1-3 months	$	2,762,701	$	2,504,400	$	658,660	$	1,111,151	$	7,036,912		1.33	%
4-6 months								791,731	$	791,731		1.64
7-9 months								583,365	$	583,365		1.55
10-12 months								613,914	$	613,914		1.40
13-18 months								583,424	$	583,424		1.79
19-24 months								437,184	$	437,184		1.81
24+ months								757,143	$	757,143		2.33

Total deposits	$	2,762,701	$	2,504,400	$	658,660	$	4,877,912	$	10,803,673		1.67	%


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

⁽²⁾		Wealth management deposit balances from unaffiliated companies are shown maturing in the period in which the current contractual obligation to hold these funds matures.

NET INTEREST INCOME

The following table presents a summary of Wintrust’s average balances, net interest income and related net interest margins, calculated on a fully tax-equivalent basis, for the fourth quarter of 2010 compared to the fourth quarter of 2009 (linked quarters):


	For the Three Months Ended								For the Three Months Ended
	December 31, 2010								December 31, 2009
(Dollars in thousands)	Average			Interest		Rate			Average			Interest		Rate

Liquidity management assets^{(1) (2) (7)}	$	2,844,351		$	9,455		1.32	%	$	2,569,584		$	14,932		2.31	%
Other earning assets ^{(2) (3) (7)}		29,676			183		2.45			26,167			171		2.59
Loans, net of unearned income^{(2) (4) (7)}		9,777,435			140,689		5.71			8,604,006			122,240		5.64
Covered loans		337,690			4,042		4.75			—			—		—

Total earning assets ⁽⁷⁾	$	12,989,152		$	154,369		4.72	%	$	11,199,757		$	137,343		4.87	%

Allowance for loan losses		(116,447	)							(97,269	)
Cash and due from banks		151,562								124,219
Other assets		1,175,084								962,389

Total assets	$	14,199,351							$	12,189,096


Interest-bearing deposits	$	9,839,223		$	27,853		1.12	%	$	9,016,863		$	38,998		1.72	%
Federal Home Loan Bank advances		415,260			4,038		3.86			432,028			4,510		4.14
Notes payable and other borrowings		244,044			1,631		2.65			234,754			1,663		2.81
Secured borrowings — owed to securitization investors		600,000			3,089		2.04			—			—		—
Subordinated notes		53,369			233		1.71			63,261			286		1.77
Junior subordinated notes		249,493			4,441		6.97			249,493			4,438		6.96

Total interest-bearing liabilities	$	11,401,389		$	41,285		1.43	%	$	9,996,399		$	49,895		1.98	%

Non-interest bearing deposits		1,148,208								886,988
Other liabilities		207,000								179,115
Equity		1,442,754								1,126,594

Total liabilities and shareholders’ equity	$	14,199,351							$	12,189,096


Interest rate spread ^{(5) (7)}							3.29	%							2.89	%
Net free funds/contribution⁽⁶⁾	$	1,587,763					0.17	%	$	1,203,358					0.21	%

Net interest income/Net interest margin ⁽⁷⁾				$	113,084		3.46	%				$	87,448		3.10	%


⁽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 December 31, 2010 and 2009 were $405,000 and $513,000, respectively.

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

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

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

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

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

The higher level of net interest income recorded in the fourth quarter of 2010 compared to the fourth quarter of 2009 was primarily attributable to a $1.2 billion increase in the average balance of loans and $338 million of FDIC covered loans. The bulk of this growth was funded by an $822 million increase in interest-bearing deposits, the $600 million securitization funding and a $384 million increase in net free funds (of which $261 million was non-interest bearing deposits).

The net interest margin increased 36 basis points in the fourth quarter of 2010 compared to the fourth quarter of 2009. The yield on total average earnings assets declined by 15 basis points as the loss of yield on liquidity management assets more than offset the slightly higher yield on loans. The net interest margin improvement can primarily be attributed to a 60 basis point reduction in the cost of interest-bearing deposits, leading to a 55 basis point reduction in the total cost of average interest-bearing liabilities.


	For the Three Months Ended								For the Three Months Ended
	December 31, 2010								September 30, 2010
(Dollars in thousands)	Average			Interest		Rate			Average			Interest		Rate

Liquidity management assets^{(1) (2) (7)}	$	2,844,351		$	9,455		1.32	%	$	2,802,964		$	9,625		1.36	%
Other earning assets ^{(2) (3) (7)}		29,676			183		2.45			34,263			205		2.37
Loans, net of unearned income^{(2) (4) (7)}		9,777,435			140,689		5.71			9,603,561			134,016		5.54
Covered loans		337,690			4,042		4.75			325,751			3,971		4.84

Total earning assets ⁽⁷⁾	$	12,989,152		$	154,369		4.72	%	$	12,766,539		$	147,817		4.59	%

Allowance for loan losses		(116,447	)							(113,631	)
Cash and due from banks		151,562								154,078
Other assets		1,175,084								1,208,771

Total assets	$	14,199,351							$	14,015,757


Interest-bearing deposits	$	9,839,223		$	27,853		1.12	%	$	9,823,525		$	31,088		1.26	%
Federal Home Loan Bank advances		415,260			4,038		3.86			414,789			4,042		3.87
Notes payable and other borrowings		244,044			1,631		2.65			232,991			1,411		2.40
Secured borrowings — owed to securitization investors		600,000			3,089		2.04			600,000			3,167		2.09
Subordinated notes		53,369			233		1.71			55,000			265		1.89
Junior subordinated notes		249,493			4,441		6.97			249,493			4,448		6.98

Total interest-bearing liabilities	$	11,401,389		$	41,285		1.43	%	$	11,375,798		$	44,421		1.55	%

Non-interest bearing deposits		1,148,208								1,005,170
Other liabilities		207,000								243,282
Equity		1,442,754								1,391,507

Total liabilities and shareholders’ equity	$	14,199,351							$	14,015,757


Interest rate spread ^{(5) (7)}							3.29	%							3.04	%
Net free funds/contribution⁽⁶⁾	$	1,587,763					0.17	%	$	1,390,741					0.18	%

Net interest income/Net interest margin ⁽⁷⁾				$	113,084		3.46	%				$	103,396		3.22	%


⁽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 December 31, 2010 was $405,000 and for the three months ended September 30, 2010 was $416,000.

⁽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 increase in net interest margin in the fourth quarter of 2010 compared to the third quarter of 2010 was primarily caused by an additional $6.2 million of accretion on the purchased life insurance portfolio resulting from increased prepayments in the fourth quarter (increased net interest margin by 19 basis points), lower costs for interest-bearing deposits (increased net interest margin by 12 basis points), lower yields on loans (reduced net interest margin by four basis points), lower yields on liquidity management assets (reduced net interest margin by one basis point), and a lower contribution from net free funds (decreased net interest margin by one basis point).

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 year ended December 31, 2010 compared to the year ended December 31, 2009:


	For the Year Ended								For the Year Ended
	December 31, 2010								December 31, 2009
(Dollars in thousands)	Average			Interest		Rate			Average			Interest		Rate

Liquidity management assets^{(1) (2) (7)}	$	2,654,013		$	45,539		1.72	%	$	2,086,653		$	62,936		3.02	%
Other earning assets ^{(2) (3) (7)}		45,021			1,067		2.37			23,979			659		2.75
Loans, net of unearned income^{(2) (4) (7)}		9,473,589			537,534		5.67			8,335,421			466,239		5.59
Covered loans		232,206			10,695		4.61			—			—		—

Total earning assets ⁽⁷⁾	$	12,404,829		$	594,835		4.80	%	$	10,446,053		$	529,834		5.07	%

Allowance for loan losses		(11,503	)							(82,029	)
Cash and due from banks		137,547								108,471
Other assets		1,125,739								942,827

Total assets	$	13,656,612							$	11,415,322


Interest-bearing deposits	$	9,409,950		$	123,779		1.32	%	$	8,419,081		$	171,259		2.03	%
Federal Home Loan Bank advances		418,981			16,520		3.94			434,520			18,002		4.14
Notes payable and other borrowings		229,569			5,943		2.59			258,322			7,064		2.73
Secured borrowings — owed to securitization investors		600,000			12,365		2.06			—			—		—
Subordinated notes		56,370			995		1.74			66,205			1,627		2.42
Junior subordinated notes		249,493			17,668		6.98			249,497			17,786		7.03

Total interest-bearing liabilities	$	10,964,363		$	177,270		1.61	%	$	9,427,625		$	215,738		2.29	%

Non-interest bearing deposits		984,416								788,034
Other liabilities		255,698								117,871
Equity		1,352,135								1,081,792

Total liabilities and shareholders’ equity	$	13,556,612							$	11,415,322


Interest rate spread ^{(5) (7)}							3.19	%							2.78	%
Net free funds/contribution⁽⁶⁾	$	1,440,466					0.18	%	$	1,018,428					0.23	%

Net interest income/Net interest margin ⁽⁷⁾				$	417,565		3.37	%				$	314,096		3.01	%


⁽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 year ended December 31, 2010 and 2009 were $1.7 million and $2.2 million, respectively.

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

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

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

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

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

The net interest margin for 2010 was 3.37%, compared to 3.01% in 2009. The increase in the net interest margin in 2010 compared to 2009 was primarily caused by an additional $24.4 million of accretion on the purchased life insurance portfolio as more prepayments occurred throughout 2010 (increased net interest margin by 23 basis points), lower costs for interest-bearing deposits (increased net interest margin by 58 basis points), and lower costs for wholesale funding (increased net interest margin by 10 basis points), offset by higher balances and lower yields on liquidity management assets, including the negative impact of selling certain collateralized mortgage obligations, (reduced net interest margin by 33 basis points), lower yields on loans (reduced net interest margin by 17 basis points) and lower contribution from net free funds (reduced net interest margin by five basis points).

NON-INTEREST INCOME

For the fourth quarter of 2010, non-interest income totaled $44.5 million, a decrease of $40.6 million, or 48%, compared to the fourth quarter of 2009. The decrease was primarily attributable to the bargain purchase gain related to income attributable to the life insurance premium finance loan acquisition in 2009, the lack of gains recognized in 2010 on loans moved into the premium finance securitizations as compared to $4.4 million of such gains in the prior period, and lower trading gains, partially offset by increases in both mortgage banking revenue and wealth management revenue.

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


	Three Months Ended
	December 31				$			%
(Dollars in thousands)	2010		2009		Change			Change

Brokerage	$	6,641	$	5,034	$	1,607			32
Trust and asset management		3,467		3,013		454			15

Total wealth management		10,108		8,047		2,061			26

Mortgage banking		22,686		16,495		6,191			38
Service charges on deposit accounts		3,346		3,437		(91	)		(3	)
Gains on sales of premium finance receivables		—		4,429		(4,429	)		(100	)
Gains on available-for-sale securities		159		642		(483	)		(75	)
Gain on bargain purchases		250		42,951		(42,701	)		(99	)
Trading gains		611		4,411		(3,800	)		(86	)
Other:
Fees from covered call options		1,074		—		1,074			100
Bank Owned Life Insurance		811		642		169			26
Administrative services		715		511		204			40
Miscellaneous		4,701		3,523		1,178			33

Total Other		7,301		4,676		2,625			56


Total Non-Interest Income	$	44,461	$	85,088	$	(40,627	)		(48	)


	Years Ended
	December 31					$			%
(Dollars in thousands)	2010		2009			Change			Change

Brokerage	$	23,713	$	17,726		$	5,987			34
Trust and asset management		13,228		10,631			2,597			24

Total wealth management		36,941		28,357			8,584			30

Mortgage banking		61,378		68,527			(7,149	)		(10	)
Service charges on deposit accounts		13,433		13,037			396			3
Gains on sales of premium finance receivables		—		8,576			(8,576	)		(100	)
Gains (losses) on available-for-sale securities		9,832		(268	)		10,100		NM
Gain on bargain purchases		44,231		156,013			(111,782	)		(72	)
Trading gains		5,165		26,788			(21,623	)		(81	)
Other:
Fees from covered call options		2,235		1,998			237			12
Bank Owned Life Insurance		2,404		2,044			360			18
Administrative services		2,749		1,975			774			39
Miscellaneous		13,792		10,600			3,192			30

Total Other		21,180		16,617			4,563			27


Total Non-Interest Income	$	192,160	$	317,647		$	(125,487	)		(40	)


NM = Not Meaningful

Wealth management revenue is comprised of the trust and asset management revenue of The Chicago Trust Company and the asset management fees, brokerage commissions, trading commissions and insurance product commissions at Wayne Hummer Investments and Wintrust Capital Management. Wealth management revenue totaled $10.1 million in the fourth quarter of 2010 and $8.0 million in the fourth quarter of 2009, an increase of 26%. Increased asset valuations due to equity market improvements have helped revenue growth from trust and asset management activities. Additionally, the improvement in the equity markets overall have led to the increase of the brokerage component of wealth management revenue as customer trading activity has increased.

Mortgage banking revenue includes revenue from activities related to originating, selling and servicing residential real estate loans for the secondary market. For the quarter ended December 31, 2010, this revenue source totaled $22.7 million, an increase of $6.2 million when compared to the fourth quarter of 2009. Mortgages originated and sold totaled $1.3 billion in the fourth quarter of 2010 compared to $1.1 billion in the third quarter of 2010 and $953 million in the fourth quarter of 2009. The increase in mortgage banking revenue in the fourth quarter of 2010 as compared to the fourth quarter of 2009 resulted primarily from an increase in gains on sales of loans, which was driven by higher origination volumes and better pricing realized as a result of the Company utilizing mandatory execution of forward commitments with investors in 2010. The increase in gains on sales was partially offset by an increase in loss indemnification claims by purchasers of the Company’s loans. The Company enters into residential mortgage loan sale agreements with investors in the normal course of business. These agreements provide recourse to investors through certain representations concerning credit information, loan documentation, collateral and insurability. Investors request the Company to indemnify them against losses on certain loans or to repurchase loans which the investors believe do not comply with applicable representations. An increase in requests for loss indemnification can negatively impact mortgage banking revenue as additional recourse expense. The Company recognized $1.4 million of expense in the fourth quarter of 2010, a decrease of $68,000 compared to the third quarter of 2010, and has recognized $11.0 million of expense in 2010. This liability 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						Years Ended
	December 31,						December 31,
(Dollars in thousands)	2010			2009			2010			2009
Mortgage loans originated and sold	$	1,250,193		$	952,624		$	3,746,073		$	4,666,507

Mortgage loans serviced	$	937,725		$	738,372
Fair value of mortgage servicing rights (MSRs)	$	8,762		$	6,745
MSRs as a percentage of loans serviced		0.93	%		0.91	%

Gain on sales of loans	$	23,216		$	17,406		$	75,303		$	71,495
Mortgage servicing rights fair value adjustments		835			26			(2,955	)		(2,031	)
Recourse obligation on loans previously sold		(1,365	)		(937	)		(10,970	)		(937	)

Total mortgage banking revenue	$	22,686		$	16,495		$	61,378		$	68,527


Gain on sales of loans as a percentage of loans sold		1.86	%		1.83	%		2.01	%		1.53	%

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

The Company recognized $159,000 of net gains on available-for-sale securities in the fourth quarter of 2010 compared to net gains of $642,000 in the prior year quarter. The net gains in the full year of 2010 were primarily related to the sale of certain collateralized mortgage obligations in the third quarter.

The gain on bargain purchase of $250,000 recognized in the fourth quarter of 2010 relates to final valuation adjustments on the FDIC-assisted bank acquisition of Ravenswood. The gain on bargain purchase of $43.0 million in the fourth quarter of 2009 is related to the life insurance premium finance loan acquisition. See “Acquisitions” for a discussion of these transactions.

Trading gains of $611,000 were recognized by the Company in the fourth quarter of 2010 compared to gains of $4.4 million in the fourth quarter of 2009. Lower trading gains in 2010 resulted primarily from realizing larger market value increases in the prior year on certain collateralized mortgage obligations held in trading which were sold in July 2010.

Other non-interest income for the fourth quarter of 2010 totaled $7.3 million, compared to $4.7 million in the fourth quarter of 2009. Fees from certain covered call option transactions increased by $1.1 million in the fourth quarter of 2010 as compared to the same period in the prior year. Historically, compression in the net interest margin was effectively offset, as has consistently been the case, by the Company’s covered call strategy. 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 fourth quarter of 2010 totaled $106.2 million and increased approximately $15.9 million, or 18%, compared to the fourth quarter 2009.

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


	Three Months Ended
	December 31				$			%
(Dollars in thousands)	2010		2009		Change			Change
Salaries and employee benefits:
Salaries	$	31,876	$	28,426		3,450			12
Commissions and bonus		18,043		11,752		6,291			54
Benefits		9,112		7,777		1,335			17

Total salaries and employee benefits		59,031		47,955		11,076			23
Equipment		4,384		4,097		287			7
Occupancy, net		5,927		6,124		(197	)		(3	)
Data processing		4,388		3,404		984			29
Advertising and marketing		1,881		1,366		515			38
Professional fees		4,775		3,556		1,219			34
Amortization of other intangible assets		719		744		(25	)		(3	)
FDIC insurance		4,572		4,731		(159	)		(3	)
OREO expenses, net		7,384		5,293		2,091			40
Other:
Commissions — 3rd party brokers		965		757		208			27
Postage		1,220		1,367		(147	)		(11	)
Stationery and supplies		1,069		859		210			24
Miscellaneous		9,886		10,064		(178	)		(2	)

Total other		13,140		13,047		93			1


Total Non-Interest Expense	$	106,201	$	90,317	$	15,884			18


	Years Ended
	December 31				$			%
(Dollars in thousands)	2010		2009		Change			Change
Salaries and employee benefits:
Salaries	$	120,210	$	108,847		11,363			10
Commissions and bonus		58,107		45,503		12,604			28
Benefits		37,449		32,528		4,921			15

Total salaries and employee benefits		215,766		186,878		28,888			15
Equipment		16,529		16,119		410			3
Occupancy, net		24,444		23,806		638			3
Data processing		15,355		12,982		2,373			18
Advertising and marketing		6,315		5,369		946			18
Professional fees		16,394		13,399		2,995			22
Amortization of other intangible assets		2,739		2,784		(45	)		(2	)
FDIC insurance		18,028		21,199		(3,171	)		(15	)
OREO expenses, net		19,331		18,963		368			2
Other:
Commissions — 3rd party brokers		4,003		3,095		908			29
Postage		4,813		4,833		(20	)		(0	)
Stationery and supplies		3,374		3,189		185			6
Miscellaneous		35,434		31,471		3,963			13

Total other		47,624		42,588		5,036			12


Total Non-Interest Expense	$	382,525	$	344,087	$	38,438			11

Salaries and employee benefits comprised 56% of total non-interest expense in the fourth quarter of 2010 and 53% in the fourth quarter of 2009. Salaries and employee benefits expense increased $11.1 million, or 23%, in the fourth quarter of 2010 compared to the fourth quarter of 2009 primarily as a result of a $6.3 million increase in bonus and commissions as variable pay based revenue increased (primarily our mortgage banking and wealth management businesses), a $3.5 million increase in salaries caused by the additional employees from the three FDIC-assisted transactions and larger staffing as the Company grows and a $1.3 million increase from employee benefits (primarily health plan and payroll taxes related).

Professional fees include legal, audit and tax fees, external loan review costs and normal regulatory exam assessments. Professional fees for the fourth quarter of 2010 were $4.8 million, an increase of $1.2 million, or 34%, compared to the same period in 2009. These increases are primarily a result of increased legal costs related to non-performing assets and recent bank acquisitions.

FDIC insurance expense was $4.6 million in the fourth quarter of 2010, a decrease of $159,000 compared to $4.7 million in the fourth quarter of 2009. The decrease in FDIC insurance expense was a result of an industry-wide special assessment on financial institutions in 2009.

OREO expenses include all costs related to obtaining, maintaining and selling of other real estate owned properties. This expense totaled $7.4 million in the fourth quarter of 2010, an increase of $2.1 million compared to $5.3 million in the fourth quarter of 2009. The increase in OREO expenses primarily related to higher valuation adjustments of properties held in OREO in the fourth quarter of 2010 as compared to fourth quarter of 2009.

ASSET QUALITY

Allowance for Credit Losses


	Three Months Ended						Years Ended
	December 31,						December 31,
(Dollars in thousands)	2010			2009			2010			2009
Allowance for loan losses at beginning of period	$	110,432		$	95,096		$	98,277		$	69,767
Provision for credit losses		28,795			38,603			124,664			167,932
Other adjustments		—			—			1,943			—
Reclassification to allowance for unfunded lending-related commitments		(1,781	)		(494	)		(1,301	)		(2,037	)

Charge-offs:
Commercial		6,060			8,894			18,592			35,022
Commercial real estate		13,591			22,894			61,873			89,114
Home equity		1,322			1,572			5,926			4,605
Residential real estate		311			385			1,143			1,067
Premium finance receivables — commercial		1,820			2,532			23,005			8,153
Premium finance receivables — life insurance		154			—			233			—
Indirect consumer		239			427			967			1,848
Consumer and other		565			148			1,141			644

Total charge-offs		24,062			36,852			112,880			140,453


Recoveries:
Commercial		268			237			1,140			450
Commercial real estate		57			552			914			792
Home equity		2			812			24			815
Residential real estate		2			—			12			—
Premium finance receivables — commercial		144			194			781			651
Premium finance receivables — life insurance		—			—			—			—
Indirect consumer		38			44			198			179
Consumer and other		8			85			131			181

Total recoveries		519			1,924			3,200			3,068

Net charge-offs, excluding covered loans		(23,543	)		(34,928	)		(109,680	)		(137,385	)
Covered loans		—			—			—			—

Net charge-offs		(23,543	)		(34,928	)		(109,680	)		(137,385	)


Allowance for loan losses at period end	$	113,903		$	98,277		$	113,903		$	98,277

Allowance for unfunded lending-related commitments at period end		4,134			3,554			4,134			3,554


Allowance for credit losses at period end	$	118,037		$	101,831		$	118,037		$	101,831


Annualized net charge-offs by category as a percentage of its own respective category’s average:
Commercial		1.11	%		2.04	%		0.95	%		2.18	%
Commercial real estate		1.66			2.62			1.83			2.59
Home equity		0.57			0.32			0.64			0.41
Residential real estate		0.17			0.28			0.19			0.21
Premium finance receivables — commercial		0.54			1.38			1.74			0.67
Premium finance receivables — life insurance		0.04			—			0.02			—
Indirect consumer		1.51			1.43			1.09			1.24
Consumer and other		1.98			0.22			0.93			0.35

Total loans, net of unearned income, excluding covered loans		0.96	%		1.61	%		1.16	%		1.65	%
Covered loans		—			—			—			—

Total loans, net of unearned income		0.92	%		1.61	%		1.13	%		1.65	%

Net charge-offs as a percentage of the provision for credit losses		81.76	%		90.48	%		87.98	%		81.81	%

*Excluding covered loans:*
Loans at period-end							$	9,599,886		$	8,411,771
Allowance for loan losses as a percentage of loans at period end								1.19	%		1.17	%
Allowance for credit losses as a percentage of loans at period end								1.23	%		1.21	%

*Including covered loans:*
Loans at period-end							$	9,934,239		$	8,411,771
Allowance for loan losses as a percentage of loans at period end								1.15	%		1.17	%
Allowance for credit losses as a percentage of loans at period end								1.19	%		1.21	%

The allowance for credit losses is comprised of the allowance for loan losses and the allowance for unfunded lending-related commitments. The allowance for loan losses is a reserve against loan amounts that are actually funded and outstanding while the allowance for unfunded lending-related commitments relates to certain amounts that Wintrust is committed to lend but for which funds have not yet been disbursed. The allowance for unfunded lending-related commitments (separate liability account) represents the portion of the provision for credit losses that was associated with unfunded lending-related commitments. The provision for credit losses may contain both a component related to funded loans (provision for loan losses) and a component related to lending-related commitments (provision for unfunded loan commitments and letters of credit). Total credit-related reserves 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”. As of December 31, 2010, there was no allowance for loan losses for covered loans.

The provision for credit losses totaled $28.8 million for the fourth quarter of 2010, $25.5 million in the third quarter of 2010 and $38.6 million for the fourth quarter of 2009. For the quarter ended December 31, 2010, net charge-offs, excluding covered loans, totaled $23.5 million compared to $21.4 million in the third quarter of 2010 and $34.9 million recorded in the fourth quarter of 2009. In the second quarter of 2010, a fraud perpetrated against a number of premium finance companies in the industry, including the property and casualty division of our premium financing subsidiary, increased both our net charge-offs and our provision for loan losses by $15.7 million. On a ratio basis, annualized net charge-offs as a percentage of average loans, excluding covered loans, were 0.96% in the fourth quarter of 2010, 0.89% in the third quarter of 2010, and 1.61% in the fourth quarter of 2009. Beginning in the third quarter of 2009, the Company committed to resolving problem credits as quickly as possible. Actions taken during this time increased OREO, net charge-offs and the provision for loan losses expenses required to maintain an appropriate level of reserves. The fourth quarter of 2010 amounts recorded for both net charge-offs and provision for credit losses reflect a continuation of the Company’s commitment to maintain a low level of non-performing assets.

Management believes the allowance for 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 table below shows the aging of the Company’s loan portfolio at December 31, 2010:

As of December 31, 2010

90+ days

60-89

30-59

and still

days past

(Dollars in thousands)

Nonaccrual

accruing

due

Current

Total Loans

Loan Balances:

Commercial

16,382

478

4,755

16,024

2,011,687

2,049,326

Commercial real-estate:

Residential construction

10,010

—

1,801

84,040

95,947

Commercial construction

1,820

—

1,481

128,371

131,672

Land

37,602

—

6,815

11,915

203,857

260,189

Office

12,718

—

9,121

3,202

510,290

535,331

Industrial

3,480

—

686

2,276

493,859

500,301

Retail

3,265

—

4,088

3,839

499,335

510,527

Multi-family

4,794

—

1,573

3,062

281,525

290,954

Mixed use and other

20,274

—

8,481

15,059

969,272

1,013,086

Total commercial real-estate

93,963

—

30,860

42,635

3,170,549

3,338,007

Total commercial and commercial real-estate

110,345

478

35,615

58,659

5,182,236

5,387,333

Home equity

7,425

—

2,181

7,098

897,708

914,412

Residential real estate

6,085

—

1,836

8,224

337,191

353,336

Premium finance receivables — commercial

8,587

8,096

6,076

16,584

1,226,157

1,265,500

Premium finance receivables — life insurance

354

—

1,521,532

1,521,886

Indirect consumer

191

318

301

918

49,419

51,147

Consumer and other

252

109

379

105,531

106,272

Total loans, net of unearned income, excluding covered loans

133,239

8,893

46,118

91,862

9,319,774

9,599,886

Aging as a % of Loan Balance:

Commercial

0.8

—

0.2

0.8

98.2

100.0

Commercial real-estate:

Residential construction

10.4

—

0.1

1.9

87.6

100.0

Commercial construction

1.4

—

1.1

97.5

100.0

Land

14.5

—

2.6

4.6

78.3

100.0

Office

2.4

—

1.7

0.6

95.3

100.0

Industrial

0.7

—

0.1

0.5

98.7

100.0

Retail

0.6

—

0.8

97.8

100.0

Multi-family

1.6

—

0.5

1.1

96.8

100.0

Mixed use and other

2.0

—

0.8

1.5

95.7

100.0

Total commercial real-estate

2.8

—

0.9

1.3

95.0

100.0

Total commercial and commercial real-estate

2.0

—

0.7

1.1

96.2

100.0

Home equity

0.8

—

0.2

0.8

98.2

100.0

Residential real estate

1.7

—

0.5

2.3

95.5

100.0

Premium finance receivables — commercial

0.7

0.6

0.5

1.3

96.9

100.0

Premium finance receivables — life insurance

0.0

—

0.0

100.0

Indirect consumer

0.4

0.6

1.8

96.6

100.0

Consumer and other

0.2

—

0.1

0.4

99.3

100.0

Total loans, net of unearned income, excluding covered loans

1.4

0.1

0.5

1.0

97.0

100.0

As of December 31, 2010, $46.1 million of all loans, excluding covered loans, or 0.5%, were 60 to 89 days past due and $91.9 million, or 1.0%, were 30 to 59 days (or one payment) past due. As of September 30, 2010, $64.8 million of all loans, excluding covered loans, or 0.7%, were 60 to 89 days past due and $85.1 million, or 0.9%, were 30 to 59 days (or one payment) past due. 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 December 31, 2010 that are current with regard to the contractual terms of the loan agreement represent 98.2% of the total home equity portfolio. Residential real estate loans at December 31, 2010 that are current with regards to the contractual terms of the loan agreements comprise 95.5% of total residential real estate loans outstanding.

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


As of September 30, 2010				90+ days			60-89			30-59
				and still			days past			days past
(Dollars in thousands)	Nonaccrual			accruing			due			due			Current			Total Loans
Loan Balances:
Commercial	$	19,444		$	—		$	5,797		$	16,790		$	1,910,760		$	1,952,791
Commercial real-estate:
Residential construction		4,921			—			3,029			3,942			91,019			102,911
Commercial construction		11,230			—			1,665			947			165,825			179,667
Land		27,134			—			13,033			3,971			219,225			263,363
Office		5,745			—			4,186			1,467			526,470			537,868
Industrial		3,565			—			1,014			6,658			461,319			472,556
Retail		2,084			—			4,254			5,079			481,216			492,633
Multi-family		9,339			—			8,023			1,966			259,799			279,127
Mixed use and other		19,322			—			7,373			6,916			969,762			1,003,373

Total commercial real-estate		83,340			—			42,577			30,946			3,174,635			3,331,498

Total commercial and commercial real-estate		102,784			—			48,374			47,736			5,085,395			5,284,289

Home equity		6,144			—			2,215			6,596			904,869			919,824
Residential real estate		6,644			—			718			1,765			332,882			342,009
Premium finance receivables — commercial		9,082			6,853			6,723			13,409			1,287,867			1,323,934
Premium finance receivables — life insurance		222			1,222			6,244			13,567			1,413,739			1,434,994
Indirect consumer		446			355			210			1,420			54,144			56,575
Consumer and other		569			2			356			565			98,038			99,530

Total loans, net of unearned income, excluding covered loans	$	125,891		$	8,432		$	64,840		$	85,058		$	9,176,934		$	9,461,155


Aging as a % of Loan Balance:
Commercial		1.0	%		—	%		0.3	%		0.9	%		97.8	%		100.0	%
Commercial real-estate:
Residential construction		4.8			—			2.9			3.8			88.5			100.0
Commercial construction		6.3			—			0.9			0.5			92.3			100.0
Land		10.3			—			5.0			1.5			83.2			100.0
Office		1.1			—			0.8			0.3			97.8			100.0
Industrial		0.8			—			0.2			1.4			97.6			100.0
Retail		0.4			—			0.9			1.0			97.7			100.0
Multi-family		3.3			—			2.9			0.7			93.1			100.0
Mixed use and other		1.9			—			0.7			0.7			96.7			100.0

Total commercial real-estate		2.5			—			1.3			0.9			95.3			100.0

Total commercial and commercial real-estate		2.0			—			0.9			0.9			96.2			100.0

Home equity		0.7			—			0.2			0.7			98.4			100.0
Residential real estate		1.9			—			0.2			0.6			97.3			100.0
Premium finance receivables — commercial		0.7			0.5			0.5			1.0			97.3			100.0
Premium finance receivables — life insurance		0.0			0.1			0.4			1.0			98.5			100.0
Indirect consumer		0.8			0.6			0.4			2.5			95.7			100.0
Consumer and other		0.6			0.0			0.3			0.6			98.5			100.0

Total loans, net of unearned income, excluding covered loans		1.3	%		0.1	%		0.7	%		0.9	%		97.0	%		100.0	%

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

Non-performing Assets, excluding covered assets

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


	December 31,			September 30,			December 31,
(Dollars in thousands)	2010			2010			2009
Loans past due greater than 90 days and still accruing:
Commercial	$	478		$	—		$	561
Commercial real-estate		—			—			—
Home equity		—			—			—
Residential real-estate		—			—			412
Premium finance receivables — commercial		8,096			6,853			6,271
Premium finance receivables — life insurance		—			1,222			—
Indirect consumer		318			355			461
Consumer and other		1			2			95

Total loans past due greater than 90 days and still accruing		8,893			8,432			7,800


Non-accrual loans:
Commercial		16,382			19,444			16,509
Commercial real-estate		93,963			83,340			80,639
Home equity		7,425			6,144			8,883
Residential real-estate		6,085			6,644			3,779
Premium finance receivables — commercial		8,587			9,082			11,878
Premium finance receivables — life insurance		354			222			704
Indirect consumer		191			446			995
Consumer and other		252			569			617

Total non-accrualloans		133,239			125,891			124,004


Total non-performing loans:
Commercial		16,860			19,444			17,070
Commercial real-estate		93,963			83,340			80,639
Home equity		7,425			6,144			8,883
Residential real-estate		6,085			6,644			4,191
Premium finance receivables — commercial		16,683			15,935			18,149
Premium finance receivables — life insurance		354			1,444			704
Indirect consumer		509			801			1,456
Consumer and other		253			571			712

Total non-performing loans	$	142,132		$	134,323		$	131,804
Other real estate owned		71,214			76,654			80,163

Total non-performing assets	$	213,346		$	210,977		$	211,967


Total non-performing loans by category as a percent of its own respective category’s period-end balance:
Commercial		0.82	%		1.00	%		0.98	%
Commercial real-estate		2.81			2.50			2.45
Home equity		0.81			0.67			0.95
Residential real-estate		1.72			1.94			1.37
Premium finance receivables — commercial		1.32			1.20			2.49
Premium finance receivables — life insurance		0.02			0.10			0.06
Indirect consumer		0.99			1.42			1.48
Consumer and other		0.24			0.57			0.65

Total loans, net of unearned income		1.48	%		1.42	%		1.57	%


Total non-performing assets as a percentage of total assets		1.58	%		1.56	%		1.74	%


Allowance for loan losses as a percentage total non-performing loans		80.14	%		82.21	%		74.56	%

Non-performing Commercial and Commercial Real Estate

The commercial non-performing loan category totaled $16.9 million as of December 31, 2010 compared to $19.4 million as of September 30, 2010 and $17.1 million as of December 31, 2009. The commercial real estate non-performing loan category totaled $94.0 million as of December 31, 2010 compared to $83.3 million as of September 30, 2010 and $80.6 million as of December 31, 2009.

Management is pursuing the resolution of all credits in this category. At this time, management believes reserves are appropriate to absorb inherent losses that 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 $13.5 million as of December 31, 2010. The balance increased $436,000 from December 31, 2009 and $722,000 from September 30, 2010. The December 31, 2010 non-performing balance is comprised of $6.1 million of residential real estate (22 individual credits) and $7.4 million of home equity loans (26 individual credits). On average, this is approximately three non-performing residential real estate loans and home equity loans per chartered bank within the Company. The Company believes control and collection of these loans is very manageable. At this time, management believes reserves are adequate to absorb inherent losses that may occur upon the ultimate resolution of these credits.

Non-performing Commercial Premium Finance Receivables

The table below presents the level of non-performing property and casualty premium finance receivables as of December 31, 2010 and 2009, and the amount of net charge-offs for the quarters then ended.


	December 31,			December 31,
(Dollars in thousands)	2010			2009
Non-performing premium finance receivables — commercial	$	16,683		$	18,149
- as a percent of premium finance receivables — commercial outstanding		1.32	%		2.49	%

Net charge-offs of premium finance receivables — commercial	$	1,676		$	2,338
- annualized as a percent of average premium finance receivables — commercial		0.54	%		1.38	%

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.

Nonperforming Loans Rollforward

The table below presents a summary of non-performing loans, excluding covered loans, as of December 31, 2010 and shows the changes in the balance during 2010:


	Three Months Ended
	December 31,			September 30,			June 30,			March 31,
(Dollars in thousands)	2010			2010			2010			2010
Balance at beginning of period	$	134,323		$	135,401		$	140,960		$	131,804
Additions, net		47,789			40,539			39,330			45,803
Return to performing status		(20	)		(19	)		(1,788	)		(3,087	)
Payments received		(6,419	)		(17,160	)		(5,634	)		(1,300	)
Transfer to OREO		(17,929	)		(10,011	)		(13,477	)		(27,246	)
Charge-offs		(14,328	)		(12,212	)		(16,481	)		(12,199	)
Net change for niche loans ⁽¹⁾		(1,284	)		(2,215	)		(7,509	)		7,185


Balance at end of period	$	142,132		$	134,323		$	135,401		$	140,960


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

Restructured Loans

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


	December 31,		September 30,		December 31,
(Dollars in thousands)	2010		2010		2009
Accruing:
Commercial	$	14,163	$	7,690	$	10,946
Commercial real estate		65,419		65,149		20,573
Residential real estate		1,562		1,121		234

Total accrual	$	81,144	$	73,960	$	31,753


Non-accrual: ⁽¹⁾
Commercial	$	3,865	$	3,959	$	—
Commercial real estate		15,947		13,812		679
Residential real estate		234		1,935		—

Total non-accrual	$	20,046	$	19,706	$	679


Total restructured loans:
Commercial	$	18,028	$	11,649	$	10,946
Commercial real estate		81,366		78,961		21,252
Residential real estate		1,796		3,056		234

Total restructured loans	$	101,190	$	93,666	$	32,432


⁽¹⁾		Included in total non-performing loans.

At December 31, 2010, the Company had $101.2 million in loans with modified terms. The $101.2 million in modified loans represents 129 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. Each restructured loan was reviewed for collateral impairment at December 31, 2010 and approximately $11.3 million of collateral impairment was present and appropriately reserved for through the Company’s normal reserving methodology in the Company’s allowance for loan losses.

WINTRUST SUBSIDIARIES AND LOCATIONS

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

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

FORWARD-LOOKING STATEMENTS

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

•

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

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

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

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

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

	•		effects resulting from the Company’s prior participation in the Capital Purchase Program;

	•		increased costs of compliance, heightened regulatory capital requirements and other risks associated with changes in regulation and the current regulatory environment, including the requirements of the Basel II and III capital regimes and the Dodd-Frank Wall Street Reform and Consumer Protection Act;

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

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

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

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

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

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

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

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

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

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

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

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

	•		significant litigation involving the Company; and

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

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

CONFERENCE CALL, WEB CAST AND REPLAY

The Company will hold a conference call at 1:00 p.m. (CT) Monday, January 24, 2011 regarding fourth quarter 2010 results. Individuals interested in listening should call (800) 514-8478 and enter Conference ID #38097571. A simultaneous audio-only web cast and replay of the conference call may be accessed via the Company’s web site at (http://www.wintrust.com), Investor News and Events, Presentations & Conference Calls. The text of the fourth quarter 2010 earnings press release will be available on the home page of the Company’s website at (http://www.wintrust.com) and at the Investor News and Events, Press Releases link on its website.

# # #

WINTRUST FINANCIAL CORPORATION — Supplemental Financial Information
Selected Financial Highlights — 5 Quarter Trends


	Three Months Ended
	December 31,			September 30,			June 30,			March 31,			December 31,
(Dollars in thousands, except per share data)	2010			2010			2010			2010			2009
Selected Financial Condition Data (at end of period):
Total assets	$	13,968,074		$	14,100,368		$	13,708,560		$	12,839,978		$	12,215,620
Total loans, excluding covered loans		9,599,886			9,461,155			9,324,163			9,070,562			8,411,771
Total deposits		10,803,673			10,962,239			10,624,742			9,724,870			9,917,074
Junior subordinated debentures		249,493			249,493			249,493			249,493			249,493
Total shareholders’ equity		1,436,549			1,398,912			1,384,736			1,364,832			1,138,639

Selected Statements of Income Data:
Net interest income		112,677			102,980			104,314			95,865			86,934
Net revenue ⁽¹⁾		157,138			157,636			154,750			138,472			172,022
Core pre-tax earnings ⁽²⁾		58,666			48,074			47,728			42,076			39,931
Net income		14,205			20,098			13,009			16,017			28,167
Net income (loss) per common share — Basic	$	(0.06	)	$	0.49		$	0.26		$	0.43		$	0.96
Net income (loss) per common share — Diluted	$	(0.06	)	$	0.47		$	0.25		$	0.41		$	0.90

Selected Financial Ratios and Other Data:
Performance Ratios:
Net interest margin ⁽²⁾		3.46	%		3.22	%		3.43	%		3.38	%		3.10	%
Non-interest income to average assets		1.24	%		1.56	%		1.51	%		1.37	%		2.77	%
Non-interest expense to average assets		2.97	%		2.85	%		2.78	%		2.70	%		2.94	%
Net overhead ratio ⁽³⁾		1.73	%		1.28	%		1.26	%		1.33	%		0.17	%
Efficiency ratio^{(2) (4)}		67.48	%		67.01	%		59.72	%		60.59	%		52.54	%
Return on average assets		0.40	%		0.57	%		0.39	%		0.52	%		0.92	%
Return on average common equity		(0.66)	%		5.44	%		2.98	%		4.93	%		10.97	%
Average total assets	$	14,199,351		$	14,015,757		$	13,390,537		$	12,590,817		$	12,189,096
Average total shareholders’ equity		1,442,754			1,391,507			1,371,689			1,196,191			1,126,594
Average loans to average deposits ratio		89.0	%		88.7	%		91.0	%		94.6	%		86.9	%
Average loans to average deposits ratio (including covered loans)		92.1			91.7			93.0			94.6			86.9

*Common Share Data at end of period:*
Market price per common share	$	33.03		$	32.41		$	33.34		$	37.21		$	30.79
Book value per common share ⁽²⁾	$	32.73		$	35.70		$	35.33		$	34.76		$	35.27
Tangible common book value per share ⁽²⁾	$	25.80		$	26.34		$	25.96		$	25.39		$	23.22
Common shares outstanding		34,864,068			31,143,740			31,084,298			31,044,449			24,206,819
Other Data at end of period: ⁽⁹⁾
Leverage Ratio⁽⁵⁾		10.6	%		10.0	%		10.2	%		10.8	%		9.3	%
Tier 1 Capital to risk-weighted assets ⁽⁵⁾		12.6	%		12.7	%		13.0	%		13.4	%		11.0	%
Total capital to risk-weighted assets⁽⁵⁾		13.9	%		14.1	%		14.3	%		14.9	%		12.4	%
Tangible Common Equity ratio (TCE) ^{(2) (8)}		8.0	%		5.9	%		6.0	%		6.3	%		4.7	%
Allowance for credit losses ⁽⁶⁾	$	118,037		$	112,807		$	108,716		$	106,050		$	101,831
Credit discounts on purchased premium finance receivables — life insurance⁽⁷⁾		23,227			26,399			28,216			33,990			37,323
Non-performing loans		142,132			134,323			135,401			140,960			131,804
Allowance for credit losses to total loans ⁽⁶⁾		1.23	%		1.19	%		1.17	%		1.17	%		1.21	%
Non-performing loans to total loans		1.48	%		1.42	%		1.45	%		1.55	%		1.57	%
Number of:
Bank subsidiaries		15			15			15			15			15
Non-bank subsidiaries		8			8			8			8			8
Banking offices		86			85			85			78			78


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

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

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

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

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

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

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

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

⁽⁹⁾		Asset quality ratios exclude covered loans.

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


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

Assets
Cash and due from banks	$	153,690		$	155,067		$	123,712		$	106,501		$	135,133
Federal funds sold and securities purchased under resale agreements		18,890			88,913			28,664			15,393			23,483
Interest-bearing deposits with other banks		865,575			1,224,584			1,110,123			1,222,323			1,025,663
Available-for-sale securities, at fair value		1,496,302			1,324,179			1,418,035			1,205,919			1,255,066
Trading account securities		4,879			4,935			38,261			39,938			33,774
Brokerage customer receivables		24,549			25,442			24,291			20,978			20,871
Federal Home Loan Bank and Federal Reserve Bank stock, at cost		82,407			80,445			79,300			74,001			73,749
Loans held-for-sale		371,447			320,440			237,981			156,049			275,715
Loans, net of unearned income, excluding covered loans		9,599,886			9,461,155			9,324,163			9,070,562			8,411,771
Covered loans		334,353			353,840			275,563			—			—

Total loans		9,934,239			9,814,995			9,599,726			9,070,562			8,411,771
Less: Allowance for loan losses		113,903			110,432			106,547			102,397			98,277

Net loans		9,820,336			9,704,563			9,493,179			8,968,165			8,313,494
Premises and equipment, net		363,696			353,445			346,806			348,182			350,345
FDIC indemnification asset		118,182			161,640			114,102			—			—
Accrued interest receivable and other assets		354,356			365,496			374,172			363,676			416,678
Trade date securities receivable		—			—			28,634			27,850			—
Goodwill		281,190			278,025			278,025			278,025			278,025
Other intangible assets		12,575			13,194			13,275			12,978			13,624

Total assets	$	13,968,074		$	14,100,368		$	13,708,560		$	12,839,978		$	12,215,620


Liabilities and Shareholders’ Equity
Deposits:
Non-interest bearing	$	1,201,194		$	1,042,730		$	953,814		$	871,830		$	864,306
Interest bearing		9,602,479			9,919,509			9,670,928			8,853,040			9,052,768

Total deposits		10,803,673			10,962,239			10,624,742			9,724,870			9,917,074
Notes payable		1,000			1,000			1,000			1,000			1,000
Federal Home Loan Bank advances		415,643			414,832			415,571			421,775			430,987
Other borrowings		260,619			241,522			218,424			218,079			247,437
Secured borrowings — owed to securitization investors		600,000			600,000			600,000			600,000			—
Subordinated notes		50,000			55,000			55,000			60,000			60,000
Junior subordinated debentures		249,493			249,493			249,493			249,493			249,493
Trade date securities payable		—			2,045			200			62,017			—
Accrued interest payable and other liabilities		151,097			175,325			159,394			137,912			170,990

Total liabilities		12,531,525			12,701,456			12,323,824			11,475,146			11,076,981


Shareholders’ Equity:
Preferred stock		49,640			287,234			286,460			285,642			284,824
Common stock		34,864			31,145			31,084			31,044			27,079
Surplus		965,203			682,318			680,261			677,090			589,939
Treasury stock		—			(51	)		(4	)		—			(122,733	)
Retained earnings		392,354			394,323			381,969			373,903			366,152
Accumulated other comprehensive income (loss)		(5,512	)		3,943			4,966			(2,847	)		(6,622	)

Total shareholders’ equity		1,436,549			1,398,912			1,384,736			1,364,832			1,138,639

Total liabilities and shareholders’ equity	$	13,968,074		$	14,100,368		$	13,708,560		$	12,839,978		$	12,215,620

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


	Three Months Ended
	December 31,			September 30,		June 30,			March 31,		December 31,
(In thousands, except per share data)	2010			2010		2010			2010		2009
Interest income
Interest and fees on loans	$	144,652		$	137,902	$	135,800		$	129,542	$	122,140
Interest bearing deposits with banks		1,342			1,339		1,215			1,274		1,369
Federal funds sold and securities purchased under resale agreements		39			35		34			49		38
Securities		7,236			7,438		11,218			11,012		12,672
Trading account securities		11			19		343			21		20
Brokerage customer receivables		170			180		166			139		143
Federal Home Loan Bank and Federal Reserve Bank stock		512			488		472			459		447

Total interest income		153,962			147,401		149,248			142,496		136,829

Interest expense
Interest on deposits		27,853			31,088		31,626			33,212		38,998
Interest on Federal Home Loan Bank advances		4,038			4,042		4,094			4,346		4,510
Interest on notes payable and other borrowings		1,631			1,411		1,439			1,462		1,663
Interest on secured borrowings — owed to securitization investors		3,089			3,167		3,115			2,995		—
Interest on subordinated notes		233			265		256			241		286
Interest on junior subordinated debentures		4,441			4,448		4,404			4,375		4,438

Total interest expense		41,285			44,421		44,934			46,631		49,895

Net interest income		112,677			102,980		104,314			95,865		86,934
Provision for credit losses		28,795			25,528		41,297			29,044		38,603

Net interest income after provision for credit losses		83,882			77,452		63,017			66,821		48,331

Non-interest income
Wealth management		10,108			8,973		9,193			8,667		8,047
Mortgage banking		22,686			20,980		7,985			9,727		16,495
Service charges on deposit accounts		3,346			3,384		3,371			3,332		3,437
Gain on sales of commercial premium finance receivables		—			—		—			—		4,429
Gains (losses) on available-for-sale securities, net		159			9,235		46			392		642
Gain on bargain purchases		250			6,593		26,494			10,894		42,951
Trading gains (losses)		611			210		(1,617	)		5,961		4,411
Other		7,301			5,281		4,964			3,634		4,676

Total non-interest income		44,461			54,656		50,436			42,607		85,088

Non-interest expense
Salaries and employee benefits		59,031			57,014		50,649			49,072		47,955
Equipment		4,384			4,203		4,046			3,896		4,097
Occupancy, net		5,927			6,254		6,033			6,230		6,124
Data processing		4,388			3,891		3,669			3,407		3,404
Advertising and marketing		1,881			1,650		1,470			1,314		1,366
Professional fees		4,775			4,555		3,957			3,107		3,556
Amortization of other intangible assets		719			701		674			645		744
FDIC insurance		4,572			4,642		5,005			3,809		4,731
OREO expenses, net		7,384			4,767		5,843			1,337		5,293
Other		13,140			12,046		11,317			11,121		13,047

Total non-interest expense		106,201			99,723		92,663			83,938		90,317

Income before taxes		22,142			32,385		20,790			25,490		43,102
Income tax expense		7,937			12,287		7,781			9,473		14,935

Net income	$	14,205		$	20,098	$	13,009		$	16,017	$	28,167

Preferred stock dividends and discount accretion	$	16,175		$	4,943	$	4,943		$	4,943	$	4,888

Net income (loss) applicable to common shares	$	(1,970	)	$	15,155	$	8,066		$	11,074	$	23,279

Net income (loss) per common share — Basic	$	(0.06	)	$	0.49	$	0.26		$	0.43	$	0.96

Net income (loss) per common share — Diluted	$	(0.06	)	$	0.47	$	0.25		$	0.41	$	0.90

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

Weighted average common shares outstanding		32,015			31,117		31,074			25,942		24,166
Dilutive potential common shares		—			988		1,267			1,139		2,845

Average common shares and dilutive common shares		32,015			32,105		32,341			27,081		27,011

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


	December 31,			September 30,			June 30,			March 31,			December 31,
(Dollars in thousands)	2010			2010			2010			2010			2009
Balance:
Commercial	$	2,049,326		$	1,952,791		$	1,827,618		$	1,749,895		$	1,743,208
Commercial real estate		3,338,007			3,331,498			3,347,823			3,333,157			3,296,698
Home equity		914,412			919,824			922,305			924,993			930,482
Residential real-estate		353,336			342,009			332,673			322,984			306,296
Premium finance receivables — commercial		1,265,500			1,323,934			1,346,985			1,317,822			730,144
Premium finance receivables — life insurance		1,521,886			1,434,994			1,378,657			1,233,573			1,197,893
Indirect consumer ⁽¹⁾		51,147			56,575			69,011			83,136			98,134
Consumer and other		106,272			99,530			99,091			105,002			108,916

Total loans, net of unearned income, excluding covered loans	$	9,599,886		$	9,461,155		$	9,324,163		$	9,070,562		$	8,411,771
Covered loans		334,353			353,840			275,563			—			—

Total loans, net of unearned income	$	9,934,239		$	9,814,995		$	9,599,726		$	9,070,562		$	8,411,771


Mix:
Commercial		21	%		20	%		19	%		19	%		21	%
Commercial real estate		34			34			35			37			39
Home equity		9			9			10			10			11
Residential real-estate		3			3			3			4			4
Premium finance receivables — commercial		13			13			14			14			9
Premium finance receivables — life insurance		15			15			14			14			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		97	%		96	%		97	%		100	%		100	%
Covered loans		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


	December 31,			September 30,			June 30,			March 31,			December 31,
(Dollars in thousands)	2010			2010			2010			2010			2009
Balance:
Non-interest bearing	$	1,201,194		$	1,042,730		$	953,814		$	871,830		$	864,306
NOW		1,561,507			1,551,749			1,560,733			1,448,857			1,415,856
Wealth Management deposits ⁽¹⁾		658,660			710,435			694,830			690,919			971,113
Money Market		1,759,866			1,746,168			1,722,729			1,586,830			1,534,632
Savings		744,534			713,823			594,753			558,770			561,916
Time certificates of deposit		4,877,912			5,197,334			5,097,883			4,567,664			4,569,251

Total deposits	$	10,803,673		$	10,962,239		$	10,624,742		$	9,724,870		$	9,917,074


Mix:
Non-interest bearing		11	%		10	%		9	%		9	%		9	%
NOW		15			14			15			15			14
Wealth Management deposits ⁽¹⁾		6			6			6			7			10
Money Market		16			16			16			16			15
Savings		7			7			6			6			6
Time certificates of deposit		45			47			48			47			46

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
	December 31,			September 30,			June 30,			March 31,			December 31,
(Dollars in thousands)	2010			2010			2010			2010			2009
Net interest income	$	113,083		$	103,396		$	104,775		$	96,311		$	87,448
Call option income		1,075			703			169			289			—

Net interest income including call option income	$	114,158		$	104,099		$	104,944		$	96,600		$	87,448


Yield on earning assets		4.72	%		4.59	%		4.91	%		5.01	%		4.87	%
Rate on interest-bearing liabilities		1.43			1.55			1.65			1.82			1.98

Rate spread		3.29	%		3.04	%		3.26	%		3.19	%		2.89	%
Net free funds contribution		0.17			0.18			0.17			0.19			0.21

Net interest margin		3.46			3.22			3.43			3.38			3.10
Call option income		0.03			0.02			0.01			0.01			—

Net interest margin including call option income		3.49	%		3.24	%		3.44	%		3.39	%		3.10	%

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


							Years Ended
							December 31,
(Dollars in thousands)	2010			2009			2008			2007			2006
Net interest income	$	417,565		$	314,096		$	247,054		$	264,777		$	250,507
Call option income		2,236			1,998			29,024			2,628			3,157

Net interest income including call option income	$	419,801		$	316,094		$	276,078		$	267,405		$	253,664


Yield on earning assets		4.80	%		5.07	%		5.88	%		7.21	%		6.91	%
Rate on interest-bearing liabilities		1.61			2.29			3.31			4.39			4.11

Rate spread		3.19	%		2.78	%		2.57	%		2.82	%		2.80	%
Net free funds contribution		0.18			0.23			0.24			0.29			0.30

Net interest margin		3.37			3.01			2.81			3.11			3.10
Call option income		0.02			0.02			0.33			0.03			0.04

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

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


	Three Months Ended
	December 31,			September 30,			June 30,			March 31,			December 31,
(In thousands)	2010			2010			2010			2010			2009
Liquidity management assets	$	2,844,351		$	2,802,964		$	2,613,179		$	2,384,122		$	2,569,584
Other earning assets		29,676			34,263			62,874			26,269			26,167
Loans, net of unearned income		9,777,435			9,603,561			9,356,033			9,150,078			8,604,006
Covered loans		337,690			325,751			210,030			—			—

Total earning assets	$	12,989,152		$	12,766,539		$	12,242,116		$	11,560,469		$	11,199,757

Allowance for loan losses		(116,447	)		(113,631	)		(108,764	)		(107,257	)		(97,269	)
Cash and due from banks		151,562			154,078			137,531			113,514			124,219
Other assets		1,175,084			1,208,771			1,119,654			1,024,091			962,389

Total assets	$	14,199,351		$	14,015,757		$	13,390,537		$	12,590,817		$	12,189,096


Interest-bearing deposits	$	9,839,223		$	9,823,525		$	9,348,541		$	8,818,012		$	9,016,863
Federal Home Loan Bank advances		415,260			414,789			417,835			429,195			432,028
Notes payable and other borrowings		244,044			232,991			217,751			225,919			234,754
Secured borrowings — owed to securitization investors		600,000			600,000			600,000			600,000			—
Subordinated notes		53,369			55,000			57,198			60,000			63,261
Junior subordinated notes		249,493			249,493			249,493			249,493			249,493

Total interest-bearing liabilities	$	11,401,389		$	11,375,798		$	10,890,818		$	10,382,619		$	9,996,399

Non-interest bearing liabilities		1,148,208			1,005,170			932,046			858,875			886,988
Other liabilities		207,000			243,282			195,984			153,132			179,115
Equity		1,442,754			1,391,507			1,371,689			1,196,191			1,126,594

Total liabilities and shareholders’ equity	$	14,199,351		$	14,015,757		$	13,390,537		$	12,590,817		$	12,189,096

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


	Three Months Ended
	December 31,			September 30,			June 30,			March 31,			December 31,
	2010			2010			2010			2010			2009
Yield earned on:
Liquidity management assets		1.32	%		1.36	%		2.04	%		2.24	%		2.31	%
Other earning assets		2.45			2.37			3.28			2.53			2.59
Loans, net of unearned income		5.71			5.54			5.71			5.75			5.64
Covered loans		4.75			4.84			5.12			—			—

		4.72	%		4.59	%		4.91	%		5.01	%		4.87	%


Rate paid on:
Interest-bearing deposits		1.12	%		1.26	%		1.36	%		1.53	%		1.72	%
Federal Home Loan Bank advances		3.86			3.87			3.93			4.11			4.14
Notes payable and other borrowings		2.65			2.40			2.65			2.63			2.81
Secured borrowings — owed to securitization investors		2.04			2.09			2.08			2.02			—
Subordinated notes		1.71			1.89			1.77			1.60			1.77
Junior subordinated notes		6.97			6.98			6.98			7.01			6.96

		1.43	%		1.55	%		1.65	%		1.82	%		1.98	%


Interest rate spread		3.29	%		3.04	%		3.26	%		3.19	%		2.89	%
Net free funds/contribution		0.17			0.18			0.17			0.19			0.21

Net interest income/Net interest margin		3.46	%		3.22	%		3.43	%		3.38	%		3.10	%

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


	Three Months Ended
	December 31,		September 30,		June 30,			March 31,		December 31,
(In thousands)	2010		2010		2010			2010		2009
Brokerage	$	6,641	$	5,806	$	5,712		$	5,554	$	5,034
Trust and asset management		3,467		3,167		3,481			3,113		3,013

Total wealth management		10,108		8,973		9,193			8,667		8,047

Mortgage banking		22,686		20,980		7,985			9,727		16,495
Service charges on deposit accounts		3,346		3,384		3,371			3,332		3,437
Gains on sales of premium finance receivables		—		—		—			—		4,429
Gains (losses) on available-for-sale securities		159		9,235		46			392		642
Gain on bargain purchases		250		6,593		26,494			10,894		42,951
Trading gains (losses)		611		210		(1,617	)		5,961		4,411
Other:
Fees from covered call options		1,074		703		169			289		—
Bank Owned Life Insurance		811		552		418			623		642
Administrative services		715		744		708			582		511
Miscellaneous		4,701		3,282		3,669			2,140		3,523

Total other income		7,301		5,281		4,964			3,634		4,676


Total Non-Interest Income	$	44,461	$	54,656	$	50,436		$	42,607	$	85,088

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


	Three Months Ended
	December 31,		September 30,		June 30,		March 31,		December 31,
(In thousands)	2010		2010		2010		2010		2009
Salaries and employee benefits:
Salaries	$	31,876	$	30,537	$	28,714	$	29,083	$	28,426
Commissions and bonus		18,043		17,366		12,967		9,731		11,752
Benefits		9,112		9,111		8,968		10,258		7,777

Total salaries and employee benefits		59,031		57,014		50,649		49,072		47,955
Equipment		4,384		4,203		4,046		3,896		4,097
Occupancy, net		5,927		6,254		6,033		6,230		6,124
Data processing		4,388		3,891		3,669		3,407		3,404
Advertising and marketing		1,881		1,650		1,470		1,314		1,366
Professional fees		4,775		4,555		3,957		3,107		3,556
Amortization of other intangibles		719		701		674		645		744
FDIC insurance		4,572		4,642		5,005		3,809		4,731
OREO expenses, net		7,384		4,767		5,843		1,337		5,293
Other:
Commissions — 3rd party brokers		965		979		1,097		962		757
Postage		1,220		1,254		1,229		1,110		1,367
Stationery and supplies		1,069		812		761		732		859
Miscellaneous		9,886		9,001		8,230		8,317		10,064

Total other expense		13,140		12,046		11,317		11,121		13,047


Total Non-Interest Expense	$	106,201	$	99,723	$	92,663	$	83,938	$	90,317

WINTRUST FINANCIAL CORPORATION — SUPPLEMENTAL FINANCIAL INFORMATION
Allowance for Credit Losses — 5 Quarter Trends


	Three Months Ended
	December 31,			September 30,			June 30,			March 31,			December 31,
(Dollars in thousands)	2010			2010			2010			2010			2009
Allowance for loan losses at beginning of period	$	110,432		$	106,547		$	102,397		$	98,277		$	95,096
Provision for credit losses		28,795			25,528			41,297			29,044			38,603
Other adjustments		—			—			—			1,943			—
Reclassification (to)/from allowance for unfunded lending-related commitments		(1,781	)		(206	)		785			(99	)		(494	)
Charge-offs:
Commercial		6,060			3,076			4,781			4,675			8,894
Commercial real estate		13,591			15,727			12,311			20,244			22,894
Home equity		1,322			1,234			3,089			281			1,572
Residential real estate		311			116			310			406			385
Premium finance receivables — commercial		1,820			1,505			17,747			1,933			2,532
Premium finance receivables — life insurance		154			79			—			—			—
Indirect consumer		239			198			256			274			427
Consumer and other		565			288			109			179			148

Total charge-offs		24,062			22,223			38,603			27,992			36,852

Recoveries:
Commercial		268			286			143			443			237
Commercial real estate		57			197			218			442			552
Home equity		2			8			6			8			812
Residential real estate		2			3			2			5			—
Premium finance receivables — commercial		144			220			188			229			194
Premium finance receivables — life insurance		—			—			—			—			—
Indirect consumer		38			29			81			50			44
Consumer and other		8			43			33			47			85

Total recoveries		519			786			671			1,224			1,924

Net charge-offs, excluding covered loans		(23,543	)		(21,437	)		(37,932	)		(26,768	)		(34,928	)
Covered loans		—			—			—			—			—

Net charge-offs		(23,543	)		(21,437	)		(37,932	)		(26,768	)		(34,928	)


Allowance for loan losses at period end	$	113,903		$	110,432		$	106,547		$	102,397		$	98,277

Allowance for unfunded lending-related commitments at period end		4,134			2,375			2,169			3,653			3,554

Allowance for credit losses at period end	$	118,037		$	112,807		$	108,716		$	106,050		$	101,831


Annualized net charge-offs by category as a percentage of its own respective category’s average:
Commercial		1.11	%		0.60	%		1.04	%		1.02	%		2.04	%
Commercial real estate		1.66			1.84			1.45			2.42			2.62
Home equity		0.57			0.53			1.34			0.12			0.32
Residential real estate		0.17			0.07			0.23			0.32			0.28
Premium finance receivables — commercial		0.54			0.39			5.46			0.54			1.38
Premium finance receivables — life insurance		0.04			0.02			—			—			—
Indirect consumer		1.51			1.08			0.92			1.00			1.43
Consumer and other		1.98			1.01			0.27			0.48			0.22

Total loans, net of unearned income, excluding covered loans		0.96	%		0.89	%		1.63	%		1.19	%		1.61	%

Covered loans		—			—			—			—			—

Total loans, net of unearned income		0.92	%		0.86	%		1.59	%		1.19	%		1.61	%

Net charge-offs as a percentage of the provision for credit losses		81.76	%		83.97	%		91.85	%		92.48	%		90.48	%

*Excluding covered loans:*
Loans at period-end	$	9,599,886		$	9,461,155		$	9,324,163		$	9,070,562		$	8,411,771
Allowance for loan losses as a percentage of loans at period end		1.19	%		1.17	%		1.14	%		1.13	%		1.17	%
Allowance for credit losses as a percentage of loans at period end		1.23	%		1.19	%		1.17	%		1.17	%		1.21	%

*Including covered loans:*
Loans at period-end	$	9,934,239		$	9,814,995		$	9,599,726		$	9,070,562		$	8,411,771
Allowance for loan losses as a percentage of loans at period end		1.15	%		1.13	%		1.11	%		1.13	%		1.17	%
Allowance for credit losses as a percentage of loans at period end		1.19	%		1.15	%		1.13	%		1.17	%		1.21	%

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


	December 31,			September 30,			June 30,			March 31,			December 31,
(Dollars in thousands)	2010			2010			2010			2010			2009
Loans past due greater than 90 days and still accruing:
Commercial	$	478		$	—		$	99		$	—		$	561
Commercial real-estate		—			—			2,248			1,195			—
Home equity		—			—			—			21			—
Residential real-estate		—			—			—			—			412
Premium finance receivables — commercial		8,096			6,853			6,350			7,479			6,271
Premium finance receivables — life insurance		—			1,222			1,923			5,450			—
Indirect consumer		318			355			579			665			461
Consumer and other		1			2			3			20			95

Total loans past due greater than 90 days and still accruing		8,893			8,432			11,202			14,830			7,800

Non-accrual loans:
Commercial		16,382			19,444			17,741			15,331			16,509
Commercial real-estate		93,963			83,340			82,984			82,389			80,639
Home equity		7,425			6,144			7,149			7,730			8,883
Residential real-estate		6,085			6,644			4,436			5,460			3,779
Premium finance receivables — commercial		8,587			9,082			11,389			14,106			11,878
Premium finance receivables — life insurance		354			222			—			73			704
Indirect consumer		191			446			438			615			995
Consumer and other		252			569			62			426			617

Total non-accrual loans		133,239			125,891			124,199			126,130			124,004

Total non-performing loans:
Commercial		16,860			19,444			17,840			15,331			17,070
Commercial real-estate		93,963			83,340			85,232			83,584			80,639
Home equity		7,425			6,144			7,149			7,751			8,883
Residential real-estate		6,085			6,644			4,436			5,460			4,191
Premium finance receivables — commercial		16,683			15,935			17,739			21,585			18,149
Premium finance receivables — life insurance		354			1,444			1,923			5,523			704
Indirect consumer		509			801			1,017			1,280			1,456
Consumer and other		253			571			65			446			712

Total non-performing loans	$	142,132		$	134,323		$	135,401		$	140,960		$	131,804
Other real estate owned		71,214			76,654			86,420			89,009			80,163

Total non-performing assets	$	213,346		$	210,977		$	221,821		$	229,969		$	211,967


Total non-performing loans by category as a percent of its own respective category’s period-end balance:
Commercial		0.82	%		1.00	%		0.98	%		0.88	%		0.98	%
Commercial real-estate		2.81			2.50			2.55			2.51			2.45
Home equity		0.81			0.67			0.78			0.84			0.95
Residential real-estate		1.72			1.94			1.33			1.69			1.37
Premium finance receivables — commercial		1.32			1.20			1.32			1.64			2.49
Premium finance receivables — life insurance		0.02			0.10			0.14			0.45			0.06
Indirect consumer		0.99			1.42			1.47			1.54			1.48
Consumer and other		0.24			0.57			0.07			0.42			0.65

Total loans		1.48	%		1.42	%		1.45	%		1.55	%		1.57	%


Total non-performing assets as a percentage of total assets		1.58	%		1.56	%		1.67	%		1.79	%		1.74	%


Allowance for loan losses as a percentage total non-performing loans		80.14	%		82.21	%		78.69	%		72.64	%		74.56	%


Illinois	0-21923	36-3873352
(State or other jurisdiction of	(Commission File Number)	(I.R.S. Employer Identification No.)
Incorporation)


727 North Bank Lane		60045
Lake Forest, Illinois		(Zip Code)
(Address of principal executive
offices)

o		Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

o		Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

o		Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

o		Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))


	WINTRUST FINANCIAL CORPORATION (Registrant)
	By:	/s/ David L. Stoehr
		David L. Stoehr
		Executive Vice President and Chief Financial Officer


99.1		Fourth Quarter 2010 Earnings Release dated January 24, 2011.

•		The core pre-tax earnings calculation and the tangible common book value per share calculation are shown within “Supplemental Financial Measures/Ratios” later in this release

•		Core pre-tax earnings by quarter are annualized based on the number of days within each quarter

•		Non-performing loans to total loans ratio excludes covered loans

•		Non-performing assets to total assets ratio excludes covered assets


	Period End
	December 31,		September 30,		December 31,
Balance by Property Type	2010		2010		2009
Residential real estate	$	5,694	$	8,778	$	5,889
Residential real estate development		17,781		22,600		41,992
Commercial real estate		47,739		45,276		32,282

Total	$	71,214	$	76,654	$	80,163