Company: WTFCN
Filing Date: 2025-05-05
Form Type: 10-Q
Source: 0001015328-25-000130
Chunk: 125

Company: WINTRUST FINANCIAL CORP
Filing Date: 2025-05-05
Form: 10-Q
Item: Item 2
Chunk 125
---
-tax income, excluding provision for credit losses. Management believes that these measures and ratios 

46

provide users of the Company’s financial information a more meaningful view of the performance of the Company’s 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 using tax rates effective as of the end of the period. 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. Management considers the tangible common equity ratio and tangible book value per common share as useful measurements of the Company’s equity. The Company references the return on average tangible common equity as a measurement of profitability. Management considers pre-tax income, excluding provision for credit losses as a useful measurement of the Company’s core net income.

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 March 31,December 31,March 31,(Dollars and shares in thousands)202520242024Reconciliation of Non-GAAP Net Interest Margin and Efficiency Ratio:(A) Interest Income (GAAP)$886,965 $913,501 $805,513 Taxable-equivalent adjustment: - Loans2,206 2,352 2,246  - Liquidity management assets690 716 550  - Other earning assets3 2 5 (B) Interest Income (non-GAAP)$889,864 $916,571 $808,314 (C) Interest Expense (GAAP)360,491 388,353 341,319 (D) Net Interest Income (GAAP) (A minus C)526,474 525,148 464,194 (E) Net Interest