Company: WTFCN
Filing Date: 2025-08-06
Form Type: 10-Q
Source: 0001015328-25-000188
Chunk: 92

Company: WINTRUST FINANCIAL CORP
Filing Date: 2025-08-06
Form: 10-Q
Item: Item 1
Chunk 92
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 as the Dow Jones Total Stock Market Index specifically for the commercial portfolio and the Commercial Real Estate Price Index (“CREPI”) specifically related to the commercial real estate portfolio. The Dow Jones Total Stock Market Index is not a new macroeconomic variable used in the commercial loss model. This variable has always been a part of the expected credit loss model for commercial, however we have included the impact analysis due to the significant volatility experienced in this variable during the beginning of 2025. Holding all other inputs constant, the table below shows the impact of changes in these key macroeconomic variable data points on the estimate of allowance for credit losses.

Impact to estimated allowance for credit losses from an increased or higher input valueBaa Credit SpreadIncreasesDow Jones Total Stock Market IndexDecreasesCRE Price IndexDecreases

Holding all other inputs constant, the following table provides a sensitivity analysis for the commercial and commercial real estate portfolios based on a 20 basis point change in Baa credit spreads from the assumption utilized in the estimate of that portfolio’s allowance for credit losses at June 30, 2025:

Baa Credit SpreadNarrowsWidensCommercialDecreases estimate by 10%-15%Increases estimate by 10%-15%Commercial Real Estate:ConstructionDecreases estimate by 15%-20%Increases estimate by 15%-20%Non-ConstructionDecreases estimate by 5%-6%Increases estimate by 5%-6%

Holding all other inputs constant, the following table provides a sensitivity analysis for the commercial portfolio based on a 10% change in the Dow Jones Total Stock Market Index from the assumption utilized in the estimate of that portfolio’s allowance for credit losses at June 30, 2025:

Dow Jones Total Stock Market IndexIncreasesDecreasesCommercialDecreases estimate by 5%-10%Increases estimate by 5%-10%

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Holding all other inputs constant, the following table provides a sensitivity analysis for the commercial real estate construction and non-construction portfolios based on a 10% change in CREPI from the assumption utilized in the estimate of that portfolio’s allowance for credit losses at June 30, 2025:

CRE Price IndexIncreasesDecreasesCommercial Real Estate:ConstructionDecreases estimate by 30%-35%Increases estimate by 140%-145%Non-ConstructionDecreases estimate by 25%-30%Increases estimate by 40%-45%

See Note (7) “Allowance for Credit Losses” to the Consolidated Financial Statements in Item 1 of this report and the