Company: WTFCN
Filing Date: 2025-08-06
Form Type: 10-Q
Source: 0001015328-25-000188
Chunk: 56

Company: WINTRUST FINANCIAL CORP
Filing Date: 2025-08-06
Form: 10-Q
Item: Item 1
Chunk 56
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 interest expense on a straight-line basis over the original term of the terminated derivative contracts. 

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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 EndedSix Months Ended(In thousands)June 30,2025June 30,2024June 30,2025June 30,2024Unrealized gain (loss) at beginning of period$42,565 $(38,553)$(15,508)$43,538 Amount reclassified from accumulated other comprehensive income or loss to interest income or expense on deposits, loans, and other borrowings 4,890 20,524 10,636 40,342 Amount of gain (loss) recognized in other comprehensive income or loss25,074 (31,367)77,401 (133,276)Unrealized gain (loss) at end of period$72,529 $(49,396)$72,529 $(49,396)As of June 30, 2025, the Company estimated that during the next 12 months $2.2 million will be reclassified from accumulated other comprehensive income or loss as a decrease 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 $15.5 million reclassified as a reduction to interest income related to the interest rate collars and swaps noted above that remain outstanding.Fair Value Hedges of Interest Rate RiskInterest rate swaps designated as fair value hedges involve the payment of fixed amounts to a counterparty in exchange for the Company receiving variable payments over the life of the agreements without the exchange of the underlying notional amount.  As of June 30, 2025, the Company had 13 interest rate swaps with an aggregate notional amount of $143.1 million that were designated as fair value hedges primarily associated with fixed rate commercial and industrial and commercial real estate loans as well as life insurance premium finance receivables. For derivatives designated and that qualify as fair value hedges, the net gain or loss from the entire change in the fair value of the derivative instrument is recognized in the same income statement line item as the earnings effect, including the net gain or loss, of the hedged item (interest income earned on fixed rate loans) when the hedged item affects earnings.The following table presents the carrying