Company: WTFCN
Filing Date: 2025-05-05
Form Type: 10-Q
Source: 0001015328-25-000130
Chunk: 59

Company: WINTRUST FINANCIAL CORP
Filing Date: 2025-05-05
Form: 10-Q
Item: Item 1
Chunk 59
---
 as yield curves and commodity prices prevailing at the measurement date, and are classified as Level 2 in the fair value hierarchy. The credit risk associated with derivative financial instruments that are subject to master netting agreements is measured on a net basis by counterparty portfolio. The fair value for mortgage-related derivatives is based on changes in mortgage rates from the date of the commitments. The fair value of foreign currency derivatives is computed based on change in foreign currency rates stated in the contract compared to those prevailing at the measurement date.At March 31, 2025, the Company classified $5.5 million of derivative assets related to interest rate locks as Level 3. The fair value of interest rate locks is based on prices obtained for loans with similar characteristics from third parties, adjusted for the pull-through rate, which represents the Company’s best estimate of the likelihood that a committed loan will ultimately fund.  The weighted-average pull-through rate at March 31, 2025 was 83.80% with pull-through rates applied ranging from 4% to 100%. Pull-through rates are directly related to the fair value of interest rate locks as an increase in the pull-through rate results in an increased valuation.Nonqualified deferred compensation assets—The underlying assets relating to the nonqualified deferred compensation plan are included in a trust and primarily consist of non-exchange traded institutional funds which are priced based by an independent third party service. These assets are classified as Level 2 in the fair value hierarchy.

35

The following tables present the balances of assets and liabilities measured at fair value on a recurring basis for the periods presented:March 31, 2025(In thousands)TotalLevel 1Level 2Level 3Available-for-sale securitiesU.S. Treasury$12,994 $12,994 $— $— U.S. government agencies45,944 — 45,944 — Municipal188,149 — 66,305 121,844 Corporate notes 81,435 — 81,435 — Mortgage-backed3,891,783 — 3,891,783 — Equity securities with readily determinable fair value270,442 262,376 8,066 — Mortgage loans held-for-sale316,804 — 260,480 56,324 Loans held-for-investment126,521 — 92,519 34,002 MSRs196,307 — — 196,307