Company: WTFCN
Filing Date: 2025-11-06
Form Type: 10-Q
Source: 0001015328-25-000207
Chunk: 74

Company: WINTRUST FINANCIAL CORP
Filing Date: 2025-11-06
Form: 10-Q
Item: Item 1
Chunk 74
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 individual assets or portfolios at September 30, 2025:September 30, 2025Three Months Ended September 30, 2025Fair Value Losses  Recognized, netNine Months Ended September 30, 2025Fair Value Losses Recognized, net(In thousands)TotalLevel 1Level 2Level 3Individually assessed loans - foreclosure probable and collateral-dependent$124,966 $— $— $124,966 $21,509 $42,664 Other real estate owned (1)24,832 — — 24,832 — 816 Total$149,798 $— $— $149,798 $21,509 $43,480 (1)Net fair value losses recognized on other real estate owned include valuation adjustments and charge-offs during the respective period.Individually assessed loans—In accordance with ASC 326, the allowance for credit losses for loans and other financial assetsheld at amortized cost should be measured on a collective or pooled basis when such assets exhibit similar risk characteristics. In instances in which a financial asset does not exhibit similar risk characteristics to a pool, the Company is required to measure such allowance for credit losses on an individual asset basis. For the Company’s loan portfolio, nonaccrual loans are considered to not exhibit similar risk characteristics as pools and thus are individually assessed. Credit losses are measured by estimating the fair value of the loan based on the present value of expected cash flows, the market price of the loan, or the fair value of the underlying collateral. Individually assessed loans are considered a fair value measurement where an allowance for credit loss is established based on the fair value of collateral. Appraised values on relevant real estate properties, which may require adjustments to market-based valuation inputs, are generally used on foreclosure probable and collateral-dependent loans within the real estate portfolios.

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The Company’s Managed Assets Division is primarily responsible for the valuation of Level 3 inputs of individually assessed loans. For more information on individually assessed loans refer to Note (7) “Allowance for Credit Losses” in Item 1 of this report. At September 30, 2025, the Company had $125.0 million of individually assessed loans classified as Level 3. All of the $125.0 million of individually assessed loans were measured at fair value based on the underlying collateral of the loan as shown in the table above.Other real estate owned —