Company: WTFCN
Filing Date: 2025-02-28
Form Type: 10-K
Source: 0001015328-25-000093
Chunk: 119

Company: WINTRUST FINANCIAL CORP
Filing Date: 2025-02-28
Form: 10-K
Item: Item 8
Chunk 119
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 The fair value of performance stock awards with a market condition metric is determined using a Monte Carlo simulation model and the fair value of stock options is estimated using a Black-Scholes option-pricing model. The Monte Carlo simulation model and the Black-Scholes option-pricing model require the input of highly subjective assumptions and are sensitive to changes in the award’s expected life and the price volatility of the underlying stock, which can materially affect the fair value estimates. Management periodically reviews and adjusts the assumptions used to calculate the fair value of such awards when granted. No options have been granted since 2016.Stock-based compensation is recognized based on the number of awards that are ultimately expected to vest, taking into account expected forfeitures. In addition, for performance-based awards with a performance metric, an estimate is made of the number of shares expected to vest as a result of actual performance against the performance criteria in the award to determine the amount of compensation expense to recognize. The estimate is re-evaluated quarterly and total compensation expense is adjusted for any change in estimate in the current period. Stock-based compensation expense recognized in the Consolidated Statements of Income was $38.9 million, $33.5 million and $31.7 million and the related tax benefits were $8.3 million, $7.4 million and $7.0 million in 2024, 2023 and 2022, respectively.A summary of the Plans’ stock option activity for the years ended December 31, 2024, 2023 and 2022 is as follows:Stock OptionsCommonSharesWeighted AverageStrike PriceRemainingContractual Term(1)Intrinsic Value(2)($000)Outstanding at January 1, 2022193,447 $41.62 Exercised(123,924)41.89 Forfeited or canceled(1,430)40.87   Outstanding at December 31, 202268,093 $41.14 1.1$2,954 Exercisable at December 31, 202268,093 $41.14 1.1$2,954 Outstanding at January 1, 202368,093 $41.14 Exercised(54,993)40.75 Outstanding at December 31, 202313,100 $42.76 4.2$655 Exercisable at December 31, 202313,100 $42.76