Company: WTFCN
Filing Date: 2025-05-05
Form Type: 10-Q
Source: 0001015328-25-000130
Chunk: 153

Company: WINTRUST FINANCIAL CORP
Filing Date: 2025-05-05
Form: 10-Q
Item: Item 2
Chunk 153
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 Premium finance receivables—life insurance0.04 0.08 — Consumer and other0.10 0.05 0.13 Total non-performing loans0.35 %0.36 %0.34 %Total non-performing assets, as a percentage of total assets0.30 %0.30 %0.28 %Total nonaccrual loans as a percentage of total loans0.31 %0.32 %0.28 %Allowance for credit losses as a percentage of nonaccrual loans296.25 %282.33 %348.98 %

(1)Excludes early buy-out loans guaranteed by U.S. government agencies. Early buy-out loans are insured or guaranteed by the FHA or the U.S. Department of Veterans Affairs, subject to indemnifications and insurance limits for certain loans.  

At this time, management believes reserves are appropriate to absorb losses that are expected upon the ultimate resolution of these credits. Significant increases may occur in subsequent periods due to ongoing macroeconomic uncertainty and related impacts on borrowers. Management will continue to actively review and monitor its loan portfolios, in an effort to identify  problem credits in a timely manner.

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Non-performing Loans Rollforward, excluding early buy-out loans guaranteed by U.S. government agencies

The table below presents a summary of non-performing loans for the periods presented:     Three Months EndedMarch 31,March 31,(In thousands)20252024Balance at beginning of period$170,823 $139,030 Additions from becoming non-performing in the respective period27,721 23,142 Return to performing status(1,207)(490)Payments received(15,965)(8,336)Transfer to OREO and other repossessed assets— (1,381)Charge-offs(8,600)(14,810)Net change for premium finance receivables(382)11,204 Balance at end of period$172,390 $148,359 

Allowance for Credit Losses

The allowance for credit losses, specifically the allowance for loans losses and the allowance for unfunded commitment losses, represents management’s estimate of lifetime expected credit losses in the loan portfolio. The allowance for credit losses is determined quarterly using a methodology that incorporates important risk characteristics of each loan. A description of how the Company determines the allowance for credit losses is included in Item 7 - Management’s