Company: WTFCN
Filing Date: 2025-11-06
Form Type: 10-Q
Source: 0001015328-25-000207
Chunk: 182

Company: WINTRUST FINANCIAL CORP
Filing Date: 2025-11-06
Form: 10-Q
Item: Item 2
Chunk 182
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3 Indiana464,808 3.4 445,417 3.5 Georgia333,260 2.5 228,613 1.8 Texas319,292 2.3 281,057 2.2 California291,088 2.1 259,341 2.0 Colorado288,412 2.1 251,247 2.0 Tennessee276,393 2.0 289,989 2.3 Arizona255,994 1.9 205,835 1.6 Other2,037,217 15.0 1,531,356 11.9 Total commercial real estate$13,619,207 100.0 %$12,793,417 100.0 %

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. 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 $189.5 million as of September 30, 2025 compared to $171.6 million as of September 30, 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, 65.1% of our commercial real estate loan portfolio is located in this region as of September 30, 2025. We have been able to effectively manage our total non-performing commercial real estate loans, aided by our credit management process. As of September 30, 2025, our allowance for credit losses related to this portfolio was $230.5 million compared to $231.1 million as of September 30, 2024. The decrease in the allowance for credit losses is primarily a result of improvement in the macroeconomic scenario related to Baa credit spread, offset by growth in the portfolio. The table below sets forth the commercial real estate loans by property type and owner vs. non-owner occupied.

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(In thousands)September 30, 2025September 30, 2024Commercial Real Estate:Owner OccupiedNon-Owner OccupiedTotal% of TotalAverage Size of LoanOwner OccupiedNon-Owner