Company: WTFCN
Filing Date: 2025-02-28
Form Type: 10-K
Source: 0001015328-25-000093
Chunk: 137

Company: WINTRUST FINANCIAL CORP
Filing Date: 2025-02-28
Form: 10-K
Item: Item 8
Chunk 137
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 income and to manage its exposure to interest rate movements. To accomplish these objectives, the Company primarily uses interest rate swaps and interest rate collars as part of its interest rate risk management strategy. Interest rate swaps designated as cash flow hedges involve the receipt of variable-rate amounts to or from a counterparty in exchange for the Company receiving or paying fixed-rate payments over the life of the agreements without the exchange of the underlying notional amount. Interest rate collars designated as cash flow hedges involve the settlement of amounts in which the interest rate specified in the contract exceeds the agreed upon cap strike rate or in which the interest rate specified in the contract is below the agreed upon floor strike rate at the end of each period.  As of December 31, 2024, the Company had various interest rate collar and swap derivatives designated as cash flow hedges of variable rate loans. When the relationship between the hedged item and hedging instrument is highly effective at achieving offsetting changes in cash flows attributable to the hedged risk, changes in the fair value of these cash flow hedges are recorded in accumulated other comprehensive income or loss and are subsequently reclassified to interest income as interest payments are made on such variable rate loans. The changes in fair value (net of tax) are separately disclosed in the Consolidated Statements of Comprehensive Income.

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The table below provides details on these cash flow hedges, summarized by derivative type and maturity, as of December 31, 2024: December 31, 2024(In thousands)NotionalAmountFair ValueAsset (Liability)Interest Rate Collars at 1-month CME term SOFR:Buy 2.250% floor, sell 3.743% cap; matures September 2025$1,250,000 $(3,943)Buy 2.750% floor, sell 4.320% cap; matures October 2026500,000 (893)Buy 2.000% floor, sell 3.450% cap; matures September 20271,250,000 (23,600)Interest Rate Swaps at 1-month CME term SOFR:Fixed 3.748%; matures December 2025250,000 (881)Fixed 3.759%; matures December 2025250,000 (854)Fixed 3.680%; matures February 2026250,000 (1,100)Fixed 4.176%; matures March 2026250,000 277 Fixed