Company: WTFCN
Filing Date: 2025-05-05
Form Type: 10-Q
Source: 0001015328-25-000130
Chunk: 149

Company: WINTRUST FINANCIAL CORP
Filing Date: 2025-05-05
Form: 10-Q
Item: Item 2
Chunk 149
---
 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. As a result of growth and the macroeconomic uncertainty qualitative overlay in the Company’s commercial loan portfolio, our allowance for credit losses in our commercial loan portfolio increased to $201.2 million as of March 31, 2025 compared to $166.5 million as of March 31, 2024.

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, 67.4% of our commercial real estate loan portfolio is located in this region as of March 31, 2025. We have been able to effectively manage our total non-performing commercial real estate loans, aided by our credit management process. As of March 31, 2025, our allowance for credit losses related to this portfolio was $210.0 million compared to $226.1 million as of March 31, 2024. The decrease in the allowance for credit losses is primarily a result of the macroeconomic outlook related to the Commercial Real Estate Price Index macroeconomic variable. The table below sets forth the commercial real estate loans by property type and owner vs. non-owner occupied.

60

(In thousands)March 31, 2025March 31, 2024Commercial Real Estate:Owner OccupiedNon-Owner OccupiedTotal% of TotalAverage Size of LoanOwner OccupiedNon-Owner OccupiedTotal% of TotalAverage Size of LoanResidential construction$1,530 $54,319 $55,849 0 %$458 $3,192 $54,366 $57,558 1 %$859 Commercial construction201,889 1,884,908 2,086,797 16 5,296 93,090 1,655,517 1,748,607 15 4,150 Land5,687 300,548 306,235 2 1,781 9,301 334,848 344,149 3 2,049 Office288,398 1,353,157 1,641,555 13 1,505 269,404 1,297,344 1,566,748 13 1,494 Industrial932,404