Company: WTFCN
Filing Date: 2025-02-28
Form Type: 10-K
Source: 0001015328-25-000093
Chunk: 89

Company: WINTRUST FINANCIAL CORP
Filing Date: 2025-02-28
Form: 10-K
Item: Item 8
Chunk 89
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— — — — — 8-10 internal grade— — — — — — — Total corporate notes$— $— $14,969 $— $6,004 $35,878 $56,851 Total held-to-maturity securities$3,613,720 Less: Allowance for credit losses(457)Held-to-maturity securities, net of allowance for credit losses$3,613,263 

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Measurement of Allowance for Credit LossesThe Company’s allowance for credit losses consists of the allowance for loan losses, the allowance for unfunded commitment losses and the allowance for held-to-maturity debt security losses. In accordance with ASC 326, the Company measures the allowance for credit losses at the time of origination or purchase of a financial asset, representing an estimate of lifetime expected credit losses on the related asset. When developing its estimate, the Company considers available information relevant to assessing the collectability of cash flows, from both internal and external sources. Historical credit loss experience is one input in the estimation process as well as inputs relevant to current conditions and reasonable and supportable forecasts. In considering past events, the Company considers the relevance, or lack thereof, of historical information due to changes in such things as financial asset underwriting or collection practices, and changes in portfolio mix due to changing business plans and strategies. In considering current conditions and forecasts, the Company considers both the current economic environment and the forecasted direction of the economic environment with emphasis on those factors deemed relevant to or driving changes in expected credit losses. As significant judgment is required, the review of the appropriateness of the allowance for credit losses is performed quarterly by various committees with participation by the Company’s executive management.December 31,December 31,(In thousands)20242023Allowance for loan losses$364,017 $344,235 Allowance for unfunded lending-related commitments losses72,586 83,030 Allowance for loan losses and unfunded lending-related commitments losses436,603 427,265 Allowance for held-to-maturity securities losses457 347 Allowance for credit losses$437,060 $427,612 The allowance for credit losses is measured on a collective or pooled basis when similar risk characteristics exist, based upon the segmentation discussed above. The Company utilizes modeling methodologies that estimate lifetime credit loss rates on each pool.  These methodologies include estimating the probability of default and loss given default on