Wintrust Financial Corporation | research notes

Wintrust Financial Corporation: A Leader in Community Banking

Introduction

Wintrust Financial Corporation is a Chicago-based financial holding company with a rich history and a strong presence in the Midwest and Mid-Atlantic regions of the United States. The company provides a comprehensive range of financial products and services to individuals, businesses, and institutions.

History and Background

Wintrust's origins date back to 1931 when it was founded as Lake Shore Trust and Savings Bank. Over the years, the company has grown through a series of strategic acquisitions and mergers, including the acquisition of Rosemont Savings Bank in 2001 and Midwest Banc Holdings in 2004. Today, Wintrust ranks among the largest community banks in the United States.

Business Model

Wintrust operates a traditional community banking model with a focus on local markets and deep relationships with its customers. The company's business units offer a full suite of financial products, including:

• Retail banking (checking and savings accounts, loans, mortgages)
• Commercial banking (business loans, treasury management)
• Wealth management (investment and financial planning)
• Mortgage servicing
• Insurance

Geographic Reach

Wintrust has a broad geographic footprint, with over 170 banking centers located in Illinois, Wisconsin, Minnesota, Indiana, Ohio, Arizona, and Florida. The company also serves customers through a network of ATM machines, online and mobile banking platforms.

Financial Strength

Wintrust Financial Corporation is a well-capitalized and financially sound company. The company has consistently reported strong earnings and maintained a high level of asset quality. Wintrust is also consistently ranked among the top-performing banks in the United States by independent analysts.

Community Involvement

Wintrust is actively involved in supporting the communities it serves. The company provides financial support to various non-profit organizations and educational institutions. Wintrust employees also volunteer countless hours to local charities and organizations.

Leadership

Wintrust Financial Corporation is led by CEO Edward Wehmer, a banking industry veteran with over four decades of experience. Wehmer and his management team are committed to providing exceptional customer service, maintaining a strong financial position, and being a positive force in the communities they serve.

Conclusion

Wintrust Financial Corporation is a premier community banking institution with a long-standing tradition of providing financial services to individuals, businesses, and institutions. The company's strong financial strength, broad geographic reach, and commitment to community involvement make it a trusted partner for its customers and a valuable asset to the communities it serves.

Wintrust Financial Corporation's Business Model

Wintrust Financial Corporation is a financial holding company that provides a range of banking and financial services to individuals, businesses, and institutions. Its business model revolves around three core segments:

• Retail Banking: Offers checking and savings accounts, mortgages, personal loans, and other financial products to consumers.
• Commercial Banking: Provides lending, cash management, and other financial services to businesses and organizations.
• Wealth Management: Offers investment advisory, trust, and wealth management services to high-net-worth individuals and families.

Wintrust operates a network of over 200 banking offices and financial centers throughout the Midwest and Florida. Its growth strategy involves both organic expansion and acquisitions of smaller banks to increase its market share and geographic reach.

Advantages to Competitors

1. Regional Focus: Wintrust's focus on the Midwest and Florida markets allows it to develop deep relationships with customers and understand local business dynamics. This regional specialization enables it to tailor its products and services to meet the needs of its target market.

2. Diversified Product Offerings: By offering a comprehensive suite of financial products and services across different business lines, Wintrust can meet the diverse financial needs of its customers. This diversification helps it build loyalty and attract new customers who may need multiple financial solutions.

3. Strong Financial Performance: Wintrust has consistently maintained strong financial performance, with high asset quality, profitability, and capital ratios. This financial stability gives it a competitive edge in attracting and retaining customers.

4. Technology and Innovation: Wintrust invests heavily in technology to enhance customer experience and efficiency. It offers a range of digital banking solutions, including mobile banking, online bill pay, and remote deposit capture. By embracing innovation, Wintrust differentiates itself from competitors and appeals to tech-savvy customers.

5. Community Engagement: Wintrust actively participates in local communities by supporting non-profit organizations and promoting financial literacy. This commitment strengthens its brand reputation and builds relationships with community stakeholders.

6. Acquisition Strategy: Wintrust's acquisition strategy has allowed it to expand its geographic footprint and product offerings. By acquiring smaller banks, it gains access to new markets and complementary business lines, which contributes to its long-term growth.

Outlook of Wintrust Financial Corporation

Overview:

Wintrust Financial Corporation is a diversified financial services provider based in Rosemont, Illinois. It operates through a network of more than 150 banking locations and 2,200 employees across the United States.

Financial Performance:

• Revenue: Wintrust has reported consistent revenue growth in recent years. In 2022, revenue increased by 10.2% year-over-year to $2.1 billion.
• Net Income: Net income has also shown strong growth, with a 16.1% increase to $394 million in 2022.
• Return on Assets (ROA): Wintrust's ROA, a measure of profitability, was 1.14% in 2022, indicating a healthy level of profitability.
• Return on Equity (ROE): The ROE, a measure of shareholder returns, was 12.94% in 2022, demonstrating strong shareholder value creation.

Business Segments:

• Commercial Banking: Wintrust provides a wide range of commercial banking services to businesses of all sizes.
• Consumer Banking: The company offers a full suite of consumer banking products and services, including checking and savings accounts, mortgages, and personal loans.
• Wealth Management: Wintrust provides investment management, trust services, and financial planning through its wealth management division.
• Mortgage Banking: The company originates and services residential and commercial mortgages.

Market Position:

• Wintrust is the ninth-largest bank in the Chicago metropolitan area based on deposits.
• It has a strong presence in the Midwest and Florida markets.
• The company has expanded its footprint through acquisitions in recent years.

Challenges:

• Competition: Wintrust faces competition from larger banks and regional financial institutions.
• Regulatory Environment: The banking industry is heavily regulated, which can impact Wintrust's operations and profitability.
• Economic Conditions: Economic downturns can negatively affect Wintrust's loan portfolio and revenue.

Opportunities:

• Digital Banking: Wintrust is investing in digital banking services to expand its reach and customer base.
• Wealth Management: The company sees potential for growth in wealth management services as the demand for financial advice increases.
• Acquisitions: Wintrust has a history of acquiring smaller banks to expand its market share.

Overall Outlook:

Wintrust Financial Corporation is a well-established and profitable financial institution with a history of strong financial performance and market growth. While the company faces challenges in the competitive banking industry, it is also well-positioned to capitalize on opportunities in digital banking, wealth management, and acquisitions. The outlook for Wintrust remains positive as it continues to expand its operations and enhance its product offerings.

Similar Companies to Wintrust Financial Corporation

1. First Midwest Bancorp (FMBI)

• Homepage: https://www.firstmidwest.com/
• Why Customers May Also Like:
  • Strong community banking presence in the Midwest
  • Diverse range of financial products and services
  • Excellent customer service ratings

2. Old National Bancorp (ONB)

• Homepage: https://www.oldnational.com/
• Why Customers May Also Like:
  • Largest financial institution headquartered in Indiana
  • Provides a wide array of banking, wealth management, and insurance solutions
  • Commitment to ethical and responsible banking practices

3. TCF Financial Corporation (TCF)

• Homepage: https://www.tcfbank.com/
• Why Customers May Also Like:
  • Extensive branch network throughout the Midwest
  • Innovative digital banking platform
  • Focus on small business banking

4. BMO Harris Bank (BMO)

• Homepage: https://www.bmoharris.com/
• Why Customers May Also Like:
  • One of the largest banks in Canada with a strong presence in the US
  • Offers a comprehensive suite of financial services
  • Convenient online and mobile banking options

5. Byline Bancorp (BY)

• Homepage: https://www.bylinebank.com/
• Why Customers May Also Like:
  • Focus on small businesses and entrepreneurs
  • Provides customized and flexible financial solutions
  • Committed to supporting local communities

1931:

• Founded as North Avenue Building and Loan Association in Chicago, Illinois.

1974:

• Changes name to Wintrust Savings and Loan Association.

1989:

• Converts to a stock savings and loan holding company, Wintrust Financial Corporation.

1992:

• Acquires five community banks in Chicago.

1995:

• Goes public on the NASDAQ stock exchange.

1997:

• Acquires First Midwest Bank.

1998:

• Acquires American National Bank & Trust Company of Wisconsin.

1999:

• Acquires Fourth Federal Savings and Loan Association of Milwaukee.

2000:

• Acquires Twin City Savings Bank.

2001:

• Acquires Cash Station, Inc., an ATM and cash management company.

2004:

• Acquires Ridgewood Savings Bank.

2005:

• Acquires First Choice Bank.

2006:

• Acquires Harmony Bank of Schaumburg.

2008:

• Acquires Valley Bancorp and its subsidiary, Valley National Bank.

2010:

• Acquires National City Bank's Illinois and Wisconsin operations.

2011:

• Acquires Busey Bank.

2014:

• Acquires Metro Bank and its subsidiary, Metro Trust Company.

2016:

• Acquires Lakeview Bank.

2017:

• Acquires Urban Partnership Bank.

2020:

• Acquires Great Lakes Capital, a wealth management firm.

Present:

• Wintrust Financial Corporation is one of the largest financial holding companies in the Midwest, with approximately $45 billion in assets. It operates a network of over 150 banking locations and provides a range of financial services to individuals, businesses, and municipalities.

2020

• Q1 2020: Wintrust Financial Corporation reports a net income of $180 million for the quarter, up 10% from the same period last year.
• Q2 2020: Wintrust Financial Corporation reports a net income of $176 million for the quarter, down 3% from the same period last year.
• Q3 2020: Wintrust Financial Corporation reports a net income of $216 million for the quarter, up 12% from the same period last year.
• Q4 2020: Wintrust Financial Corporation reports a net income of $265 million for the quarter, up 16% from the same period last year.

2021

• Q1 2021: Wintrust Financial Corporation reports a net income of $227 million for the quarter, up 6% from the same period last year.
• Q2 2021: Wintrust Financial Corporation reports a net income of $233 million for the quarter, up 8% from the same period last year.
• Q3 2021: Wintrust Financial Corporation reports a net income of $272 million for the quarter, up 15% from the same period last year.
• Q4 2021: Wintrust Financial Corporation reports a net income of $320 million for the quarter, up 23% from the same period last year.

2022

• Q1 2022: Wintrust Financial Corporation reports a net income of $273 million for the quarter, up 10% from the same period last year.
• Q2 2022: Wintrust Financial Corporation reports a net income of $290 million for the quarter, up 12% from the same period last year.
• Q3 2022: Wintrust Financial Corporation reports a net income of $315 million for the quarter, up 16% from the same period last year.

Recent Timelines:

• October 2022: Wintrust Financial Corporation announces the acquisition of 12 branches from Old National Bank.
• November 2022: Wintrust Financial Corporation reports third-quarter earnings per share of $1.47, up 16% from the same period last year.
• December 2022: Wintrust Financial Corporation announces the acquisition of Best Bancorp, Inc.
• January 2023: Wintrust Financial Corporation reports that it has been downgraded by Moody's Investors Service.
• February 2023: Wintrust Financial Corporation announces the acquisition of NorthStar Financial Group, Inc.

Outstanding Financial Services: Wintrust Financial Corporation

As a valued customer of Wintrust Financial Corporation, I am thrilled to express my utmost satisfaction with their exceptional services. I have consistently experienced professional and courteous interactions at every touchpoint.

Tailored Financial Solutions

Wintrust goes above and beyond to understand my unique financial needs. Their financial advisors are knowledgeable and provide personalized recommendations to help me achieve my financial goals. They have helped me develop a comprehensive financial plan that addresses my present and future aspirations.

Competitive Rates and Innovative Products

Wintrust offers highly competitive rates on checking, savings, and loan products. They are constantly innovating and introducing new solutions to meet the evolving needs of their customers. Their online banking platform is user-friendly and allows me to manage my finances effortlessly.

Exceptional Customer Support

The customer service team at Wintrust is truly remarkable. They are always available to answer my questions promptly and resolve any concerns I may have. Their friendly and professional demeanor makes every interaction a positive experience.

Community-Oriented

Wintrust is deeply invested in the communities they serve. They actively support local businesses and organizations, demonstrating their commitment to fostering economic growth and well-being. This community involvement is something I value greatly as a customer.

Trustworthy and Secure

Wintrust maintains the highest standards of integrity and security. I have complete confidence that my financial information is safe and secure with them. Their robust cyber security measures ensure peace of mind in the digital age.

Highly Recommended

Without hesitation, I highly recommend Wintrust Financial Corporation to anyone seeking exceptional financial services. Their commitment to customer satisfaction, tailored solutions, competitive products, and unwavering support make them an outstanding choice in the financial industry. I am proud to be a Wintrust customer and will continue to rely on their expertise for all my financial needs.

Unlock Your Financial Potential with Wintrust Financial Corporation

Visit Wintrust Financial Corporation's Website

Welcome to the world of Wintrust Financial Corporation, a leading provider of financial solutions tailored to meet the diverse needs of individuals, families, and businesses. With a rich history spanning over 100 years, our unwavering commitment to delivering exceptional service and innovative products has solidified our position as a trusted partner in the financial arena.

Tailored Banking Solutions for Every Need

At Wintrust, we understand that every customer is unique. Whether you're seeking a personal banking experience that simplifies your finances or a comprehensive suite of business banking services to drive your enterprise forward, our team of dedicated bankers is here to provide personalized guidance and customized solutions.

Our range of banking products includes:

• Checking and savings accounts designed for convenience and flexibility
• Credit cards and lines of credit to empower your financial goals
• Mortgage loans and refinancing options to make homeownership a reality
• Business loans, lines of credit, and cash management services for businesses of all sizes

Seamless Digital Banking

In today's fast-paced world, we know the importance of accessing your finances anytime, anywhere. Our user-friendly website and mobile app provide you with round-the-clock access to your accounts. Manage your finances on the go, make transactions, pay bills, and track your spending with ease.

Investment Services to Grow Your Wealth

Our team of investment professionals is ready to help you navigate the complexities of the financial markets and create a personalized investment plan tailored to your risk tolerance and long-term goals. Whether you're looking to save for retirement, build a nest egg for your family, or diversify your investment portfolio, we have the expertise to guide you every step of the way.

Community Involvement

Wintrust is deeply committed to supporting the communities we serve. Our employees actively participate in local volunteer initiatives, and we are proud to partner with organizations that make a positive impact on our neighborhoods.

Why Choose Wintrust Financial Corporation?

• Extensive Experience and Expertise: With over a century of experience, we have the knowledge and expertise to provide you with sound financial advice and solutions.
• Personalized Service: Our bankers are dedicated to building strong relationships with our customers and understanding their unique financial needs.
• Innovative Products: We continually invest in developing cutting-edge products and services to meet the evolving demands of our clients.
• Exceptional Technology: Our user-friendly website and mobile app provide you with convenient and secure access to your financial information.
• Community Focus: We believe in giving back to the communities we serve and are actively involved in local initiatives.

Join the Wintrust family today and experience the difference! Visit our website at https://www.wintrust.com/ or connect with us in person at one of our many convenient locations. Together, let's unlock your financial potential and build a brighter future for you and your loved ones.

Main Suppliers (Upstream Service Providers) of Wintrust Financial Corporation

1. Fiserv

• Website: https://www.fiserv.com/
• Services provided: Core banking platform, digital banking solutions, payments processing, and merchant services

2. Jack Henry & Associates

• Website: https://www.jackhenry.com/
• Services provided: Core banking platform, lending software, and wealth management solutions

3. Fiserv (formerly Open Solutions)

• Website: https://www.fiserv.com/en-us/business-solutions/industry-solutions/financial-services/open-solutions.html
• Services provided: Digital banking platform, mobile banking solutions, and online account opening

4. IBM

• Website: https://www.ibm.com/
• Services provided: Cloud computing infrastructure, data analytics services, and artificial intelligence solutions

5. Microsoft

• Website: https://www.microsoft.com/en-us/
• Services provided: Operating systems, productivity software, and cloud computing services

6. Visa

• Website: https://www.visa.com/
• Services provided: Payment card processing and authorization services

7. Mastercard

• Website: https://www.mastercard.com/
• Services provided: Payment card processing and authorization services

8. The Clearing House (TCH)

• Website: https://www.theclearinghouse.org/
• Services provided: Payment clearing and settlement services

9. Federal Reserve System

• Website: https://www.federalreserve.gov/
• Services provided: Monetary policy implementation, payment system oversight, and financial regulation

10. Federal Deposit Insurance Corporation (FDIC)

• Website: https://www.fdic.gov/
• Services provided: Deposit insurance and bank supervision

Main Customers (Downstream Companies) of Wintrust Financial Corporation:

Wintrust Financial Corporation provides a wide range of financial products and services to a diverse customer base, including:

Individuals:

• Consumers seeking personal banking, investment services, and mortgages
• Small business owners

Businesses:

• Small and mid-sized businesses seeking commercial banking, lending, and cash management services
• Corporate clients with complex financial needs

Non-profit organizations:

• Non-profits seeking treasury management, lending, and investment services

Government entities:

• Local, state, and federal government agencies seeking banking and investment services

Specific Downstream Companies:

Name: F&H Acquisition Corp. Website: https://www.fh-acquisitioncorp.com/

F&H Acquisition Corp. is a publicly traded special purpose acquisition company (SPAC) that merged with Wintrust in 2021. The merger expanded Wintrust's reach and enhanced its capabilities in wealth management and digital banking.

Name: HSA Bank Website: https://www.hsabank.com/

HSA Bank is a leading provider of health savings accounts (HSAs) and other tax-advantaged healthcare savings products. Wintrust Financial acquired HSA Bank in 2019, strengthening its position in the healthcare finance market.

Name: Great Lakes Direct Marketing Website: https://www.greatlakesdm.com/

Great Lakes Direct Marketing is a direct marketing agency that specializes in customer acquisition and retention programs. Wintrust Financial acquired Great Lakes Direct Marketing in 2018, enhancing its marketing capabilities and expanding its reach to new customers.

Name: Midwest Payment Systems Website: https://www.midwest-payments.com/

Midwest Payment Systems is a provider of electronic payment processing services. Wintrust Financial acquired Midwest Payment Systems in 2014, significantly expanding its payment processing capabilities.

Name: Sterling Bank Website: https://www.sterlingbankna.com/

Sterling Bank is a locally-owned bank that provides a full range of financial services to the Chicago metropolitan area. Wintrust Financial acquired Sterling Bank in 2020, expanding its presence in the Chicago market and gaining access to Sterling Bank's strong deposit base and customer relationships.

Key Revenue Streams of Wintrust Financial Corporation

1. Net Interest Income:

• Estimated annual revenue: $1.7 billion
• Majority of revenue is derived from the spread between interest earned on loans and deposits

2. Non-Interest Income:

• Estimated annual revenue: $500 million
• Includes revenue from:
  • Service charges and fees
  • Wealth management and insurance products
  • Mortgage origination and servicing
  • Investment banking

3. Mortgage Banking:

• Estimated annual revenue: $250 million
• Includes revenue from mortgage origination and servicing

4. Treasury Services:

• Estimated annual revenue: $100 million
• Includes revenue from cash management, investment advisory services, and other treasury solutions

5. Small Business Banking:

• Estimated annual revenue: $50 million
• Focuses on providing financial services to small businesses, including loans, deposits, and cash management

Other Revenue Streams:

• Investment gains
• Lease income
• Other services

Total Estimated Annual Revenue:

• $2.6 billion

Key Partners of Wintrust Financial Corporation

Wintrust Financial Corporation, headquartered in Rosemont, Illinois, is a financial services company with a network of over 150 banking offices and over 300 ATMs in the Chicago area, southern Wisconsin and northwest Indiana. The company's key partners include:

1. Fiserv

• Website: www.fiserv.com

Fiserv is a leading global provider of financial services technology solutions. The company's partnership with Wintrust provides the bank with access to a suite of innovative technologies, including digital banking, payments, and core processing.

2. Mastercard

• Website: www.mastercard.com

Mastercard is a global payment technology company that provides a wide range of payment solutions, including credit, debit, and prepaid cards. The partnership between Wintrust and Mastercard enables the bank to offer its customers a variety of convenient and secure payment options.

3. Visa

• Website: www.visa.com

Visa is another global payment technology company that provides a wide range of payment solutions. The partnership between Wintrust and Visa enables the bank to offer its customers a variety of convenient and secure payment options.

4. The Clearing House

• Website: www.theclearinghouse.org

The Clearing House is a non-profit organization that provides payment and settlement services to financial institutions. The partnership between Wintrust and The Clearing House enables the bank to offer its customers a variety of payment and settlement solutions.

5. Zelle

• Website: www.zellepay.com

Zelle is a digital payment network that enables customers to send and receive money quickly and easily. The partnership between Wintrust and Zelle enables the bank's customers to take advantage of this convenient payment option.

Wintrust Financial Corporation Key Cost Structure

Interest Expense

• Estimated annual cost: $2.2 billion

Interest expense is a major expense for Wintrust Financial Corporation, accounting for approximately 30% of the company's total operating expenses. This cost is incurred on deposits and other borrowings used to fund the company's lending activities. The cost of funds can fluctuate based on market conditions and the company's creditworthiness.

Salaries and Benefits

• Estimated annual cost: $1.4 billion

Salaries and benefits are the second-largest expense for Wintrust Financial Corporation, accounting for approximately 20% of total operating expenses. This cost includes salaries, bonuses, and employee benefits for the company's approximately 8,000 employees.

Provision for Loan Losses

• Estimated annual cost: $400 million

The provision for loan losses is a key expense for Wintrust Financial Corporation, accounting for approximately 5% of total operating expenses. This provision is used to cover potential losses on loans that the company has made. The amount of the provision can vary based on the credit quality of the company's loan portfolio and the economic outlook.

Data Processing

• Estimated annual cost: $300 million

Data processing costs include the expenses associated with the company's technology infrastructure, such as hardware, software, and network maintenance. These costs are essential for the company to conduct its banking operations and provide services to its customers.

Other Expenses

• Estimated annual cost: $700 million

Other expenses include a variety of costs such as marketing, advertising, rent, and professional fees. These costs are essential for the company to maintain its operations and grow its business.

Total Operating Expenses

• Estimated annual cost: $4.6 billion

Total operating expenses for Wintrust Financial Corporation are estimated to be approximately $4.6 billion. These expenses represent the ongoing costs of the company's banking operations.

Impact of Cost Structure on Financial Performance

The cost structure of Wintrust Financial Corporation has a significant impact on the company's financial performance. High interest expense, for example, can reduce the company's net interest margin and profitability. Similarly, high salaries and benefits can increase the company's operating expenses and reduce its earnings. The company's provision for loan losses can also impact its profitability, as it can lead to lower earnings if loan losses exceed the amount of the provision.

Cost Management

Wintrust Financial Corporation actively manages its cost structure to improve profitability and financial performance. The company has a track record of controlling costs and improving efficiency. This has enabled the company to maintain strong financial performance, even during challenging economic conditions.

Sales Channels of Wintrust Financial Corporation

Wintrust Financial Corporation primarily generates revenue through the following sales channels:

1. Commercial Banking (Estimated Annual Sales: $2.0 billion)

• Provides a range of financial services to businesses, including commercial lending, cash management, and treasury management.
• Serves customers in various industries, such as healthcare, manufacturing, and retail.

2. Consumer Banking (Estimated Annual Sales: $1.7 billion)

• Offers personal banking products and services, including checking and savings accounts, credit cards, and mortgages.
• Operates a network of over 170 branches in Illinois and Wisconsin.
• Provides online and mobile banking services.

3. Wealth Management (Estimated Annual Sales: $1.0 billion)

• Provides investment and advisory services to high-net-worth individuals and families.
• Offers a range of investment products, including mutual funds, annuities, and private equity.
• Has a team of financial advisors and relationship managers.

4. Mortgage Banking (Estimated Annual Sales: $0.5 billion)

• Originates, purchases, and sells residential and commercial mortgages.
• Works with real estate agents, homebuilders, and individual borrowers.
• Offers a variety of mortgage products, including fixed-rate and adjustable-rate loans.

5. Insurance (Estimated Annual Sales: $0.2 billion)

• Provides property and casualty insurance to businesses and individuals.
• Offers a range of insurance products, including commercial liability, homeowners, and auto insurance.
• Partners with independent insurance agents.

6. Other (Estimated Annual Sales: $0.1 billion)

• Includes revenue from lease financing, trust services, and other miscellaneous sources.

Estimated Total Annual Sales:

Based on the estimates provided above, Wintrust Financial Corporation's total annual sales are approximately:

$5.5 billion

Wintrust Financial Corporation is a financial holding company with approximately $51 billion in assets. The company provides a wide range of banking and financial services to individuals and businesses through its network of more than 150 banking centers and offices located in the greater Chicago metropolitan area, southern Wisconsin, and northwest Indiana. Wintrust Financial Corporation reported net income of $636 million in 2021, an increase of 13.6% from the previous year.

Wintrust Financial Corporation's customer segments include:

• Individuals: This segment includes consumers who use Wintrust Financial Corporation for personal banking services, such as checking accounts, savings accounts, and loans.
• Businesses: This segment includes businesses of all sizes that use Wintrust Financial Corporation for commercial banking services, such as business loans, lines of credit, and cash management services.
• Government entities: This segment includes government entities, such as municipalities, counties, and school districts, that use Wintrust Financial Corporation for banking and financial services.

The following table provides a breakdown of Wintrust Financial Corporation's customer segments and estimated annual sales:

| Customer Segment | Estimated Annual Sales | |---|---| | Individuals | $3.5 billion | | Businesses | $2.5 billion | | Government entities | $1.0 billion |

It is important to note that these are just estimates, and the actual sales figures may vary.

Wintrust Financial Corporation: Value Proposition

Wintrust Financial Corporation is a financial services company headquartered in Rosemont, Illinois. It offers a wide range of financial products and services, including banking, lending, wealth management, and insurance.

Value Proposition Components:

1. Customer Focus:

• Wintrust prioritizes customer satisfaction by providing personalized and tailored financial solutions.
• The company emphasizes building long-term relationships with its clients.
• It offers a dedicated team of financial advisors to guide customers through their financial journeys.

2. Comprehensive Product Portfolio:

• Wintrust offers a comprehensive suite of financial products and services to meet the diverse needs of its customers.
• This includes checking and savings accounts, loans, mortgages, wealth management services, and insurance products.
• The company strives to provide a one-stop solution for all financial requirements.

3. Local Expertise:

• Wintrust has a strong presence in its local markets, with over 160 branches and offices in the Midwest and Florida.
• The company's local bankers and financial advisors have extensive knowledge of the regional economies and financial landscapes.
• This allows Wintrust to provide tailored solutions that are relevant to the specific needs of its customers.

4. Technology and Innovation:

• Wintrust embraces technology to enhance customer experience and streamline operations.
• The company offers a variety of digital banking tools, including mobile banking, online bill pay, and remote deposit capture.
• Wintrust invests in innovative technologies to develop new and improved financial products and services.

5. Financial Strength:

• Wintrust is a financially strong institution with a solid track record of profitability and growth.
• The company maintains high capital ratios and a low risk profile.
• This financial stability gives customers confidence in the safety and reliability of Wintrust's financial services.

Target Audience:

Wintrust's value proposition aligns with the needs of:

• Individuals and families seeking personalized financial guidance and comprehensive banking solutions.
• Small businesses looking for tailored lending and financial advice to support their growth.
• Wealth management clients desiring customized investment strategies and estate planning services.
• Insurance customers seeking coverage to protect their assets and liabilities.

Competitive Differentiation:

Wintrust differentiates itself from competitors through its:

• Strong local presence and deep understanding of regional markets.
• Personalized customer approach and dedicated team of financial advisors.
• Comprehensive range of financial products and services offered under one roof.
• Investment in technology to enhance customer convenience and service.
• Financial stability and commitment to long-term customer relationships.

Credit Risk:

• Loan concentration to specific industries or geographies: Wintrust has significant exposure to the commercial real estate and multifamily sectors, which can be sensitive to economic downturns.
• High percentage of non-performing loans: Wintrust's non-performing loan ratio has been consistently above industry averages, indicating a higher risk of loan defaults.
• Dependence on wholesale funding: A large portion of Wintrust's funding is derived from wholesale funding sources, which can be volatile and sensitive to market conditions.

Operational Risk:

• Cyberattacks and data breaches: Wintrust is a technology-dependent organization, and cyberattacks or data breaches could disrupt operations or compromise customer information.
• Compliance with regulatory requirements: Wintrust is subject to numerous regulations, and non-compliance could result in fines, penalties, or reputational damage.
• Dependence on third-party vendors: Wintrust relies on third-party vendors for critical services, and disruptions to these services could impact operations.

Market Risk:

• Interest rate fluctuations: Wintrust's net interest margin is highly sensitive to interest rate changes, which can affect profitability.
• Competition: Wintrust operates in a highly competitive banking industry, and increasing competition could impact market share and profitability.
• Economic downturns: A recession or economic downturn could reduce loan demand, increase credit losses, and impact profitability.

Liquidity Risk:

• Limited access to cash or liquid assets: Wintrust's reliance on wholesale funding and loan concentration can create liquidity risks during periods of market stress.
• Deposit volatility: Wintrust's deposits are relatively volatile, and sudden withdrawals could strain liquidity.

Reputational Risk:

• Negative publicity or regulatory actions: Negative publicity or enforcement actions against Wintrust could damage its reputation and impact customer confidence.
• Corporate governance concerns: Any perceived weaknesses in corporate governance or ethical conduct could erode trust and investor confidence.

Additional Considerations:

• Geographic concentration: Wintrust operates primarily in the Midwest, which can limit diversification and increase exposure to regional economic fluctuations.
• Exposure to derivatives: Wintrust uses derivatives for hedging purposes, but inappropriate use or mispricing could lead to losses.
• Rapid growth: Wintrust has been growing rapidly through acquisitions, which can introduce integration challenges and potential risk exposure.