Company: WTFCN
Filing Date: 2025-02-28
Form Type: 10-K
Source: 0001015328-25-000093
Chunk: 132

Company: WINTRUST FINANCIAL CORP
Filing Date: 2025-02-28
Form: 10-K
Item: Item 8
Chunk 132
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, actual loss experience, known and inherent risks in the loans, and current economic conditions. The Company sold approximately $2.6 billion of mortgage loans in 2024 and $2.0 billion in 2023. The liability for estimated losses on repurchase and indemnification claims for residential mortgage loans previously sold to investors was approximately $188,000 and $152,000 at December 31, 2024 and 2023, respectively, and was included in other liabilities on the Consolidated Statements of Condition. Losses charged against the liability were $60,100 in 2024 as compared to $96,000 in 2023. These losses relate to mortgages which experienced early payment and other defaults meeting certain representation and warranty recourse requirements.The Company had unfunded commitments to investment partnerships that qualify for CRA purposes totaling $94.1 million and $54.0 million as of December 31, 2024 and 2023, respectively. Of these commitments, $67.0 million and $36.2 million related to legally-binding unfunded commitments for tax-credit investments and were included within other liabilities on the Consolidated Statements of Condition as of December 31, 2024 and 2023, respectively.The Company utilizes an out-sourced securities clearing platform and has agreed to indemnify the clearing broker of Wintrust Investments for losses that it may sustain from the customer accounts introduced by Wintrust Investments. As of December 31, 2024 and 2023, the total amount of customer balances maintained by the clearing broker and subject to indemnification was approximately $15.4 million and $9.0 million, respectively. Wintrust Investments seeks to control the risks associated with its customers’ activities by requiring customers to maintain margin collateral in compliance with various regulatory and internal guidelines.

Litigation MattersIn accordance with applicable accounting principles, the Company establishes an accrued liability for litigation and threatened litigation actions and proceedings when those actions present loss contingencies, which are both probable and estimable. In actions for which a loss is reasonably possible in future periods, the Company determines whether it can estimate a loss or range of possible loss. To determine whether a possible loss is estimable, the Company reviews and evaluates its material litigation on an ongoing basis, in conjunction with any outside counsel handling the matter, in light of potentially relevant factual and legal developments. This review may include information learned through the discovery process, rulings on substantive or dispositive motions, and settlement discussions.Wintrust Mortgage California PAGA MatterOn May 24, 202