Company: WTFCN
Filing Date: 2025-02-28
Form Type: 10-K
Source: 0001015328-25-000093
Chunk: 289

Company: WINTRUST FINANCIAL CORP
Filing Date: 2025-02-28
Form: 10-K
Item: Item 7
Chunk 289
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9 267,369 2.4 California260,037 2.0 251,509 2.2 Tennessee290,391 2.3 199,751 1.8 Ohio235,257 1.8 224,588 2.0 Texas327,660 2.5 219,163 1.9 Other1,819,839 14.1 1,467,696 13.0 Total$12,903,944 100.0 %$11,344,164 100.0 %

We make commercial loans for many purposes, including working capital lines, which are generally renewable annually and supported by business assets, personal guarantees and additional collateral. Such loans may vary in size based on customer need. Commercial business lending is generally considered to involve a slightly higher degree of risk than traditional consumer bank lending. Primarily as a result of growth in the portfolio, our allowance for credit losses in our commercial loan portfolio increased to $175.8 million as of December 31, 2024 compared to $169.6 million as of December 31, 2023. 

Our commercial real estate loans are generally secured by a first mortgage lien and assignment of rents on the property. Since most of our bank branches are located in the Chicago metropolitan area, southern Wisconsin, and west Michigan, 68.5% of our commercial real estate loan portfolio is located in this region as of December 31, 2024. We have been able to effectively manage our total non-performing commercial real estate loans. As of December 31, 2024, our allowance for credit losses related to this portfolio was $222.9 million compared to $223.9 million as of December 31, 2023. The decrease in the allowance for credit losses is primarily due to the impact on the Company’s loan loss modeling from improving macroeconomic conditions and expectations between the two reporting dates primarily related to the Baa credit spread and the Commercial Real Estate Price Index. The table below sets forth the commercial real estate loans by property type and owner vs. non-owner occupied.

74

(In thousands)December 31, 2024December 31, 2023Commercial Real Estate:Owner OccupiedNon-Owner OccupiedTotal% of TotalAverage Size of LoanOwner OccupiedNon-Owner OccupiedTotal% of TotalAverage Size of LoanResidential construction$2,252 $46,365 $48,617