Company: WTFCN
Filing Date: 2025-11-06
Form Type: 10-Q
Source: 0001015328-25-000207
Chunk: 58

Company: WINTRUST FINANCIAL CORP
Filing Date: 2025-11-06
Form: 10-Q
Item: Item 1
Chunk 58
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. At the time of termination, the fair value of the derivative contracts totaled an asset of $66.5 million, with such adjustments to fair value recorded in accumulated other comprehensive income or loss. In the second quarter of 2022, the Company terminated one additional interest rate swap derivative contract designated as a cash flow hedge of variable rate deposits with a total notional value of $500.0 million effective since April 2020. The remaining term of such derivative contract was through April 2024 and, at the time of termination, the fair value of the derivative contract totaled assets of $10.7 million, with such adjustments to fair value recorded in accumulated other comprehensive income or loss. 

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For all such terminations, as the hedged forecasted transactions (interest payments on variable rate deposits) are still expected to occur over the remaining term of such terminated derivatives, such adjustments will remain in accumulated other comprehensive income or loss and be reclassified as a reduction to interest expense on a straight-line basis over the original term of the terminated derivative contracts. A rollforward of the amounts in accumulated other comprehensive income or loss related to interest rate derivatives designated as cash flow hedges, including such derivative contracts terminated during the period, follows:Three Months EndedNine Months Ended(In thousands)September 30,2025September 30,2024September 30,2025September 30,2024Unrealized gain (loss) at beginning of period$72,529 $(49,396)$(15,508)$43,538 Amount reclassified from accumulated other comprehensive income or loss to interest income or expense on deposits, loans, and other borrowings 5,300 20,378 15,936 60,720 Amount of (loss) gain recognized in other comprehensive income or loss(1,020)104,470 76,381 (28,806)Unrealized gain at end of period$76,809 $75,452 $76,809 $75,452 As of September 30, 2025, the Company estimated that during the next 12 months $22.8 million will be reclassified from accumulated other comprehensive income or loss as an increase to net interest income. Such estimate consists of $13.3 million  reclassified as a reduction to interest expense on the terminated cash flow hedges discussed above and $9.5 million reclassified as an increase to interest income related to the interest rate collars,