Company: WTFCN
Filing Date: 2025-02-28
Form Type: 10-K
Source: 0001015328-25-000093
Chunk: 305

Company: WINTRUST FINANCIAL CORP
Filing Date: 2025-02-28
Form: 10-K
Item: Item 7
Chunk 305
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Management determined that the allowance for credit losses was appropriate at December 31, 2024, and that the loan portfolio is well diversified and well secured, without undue concentration in any specific risk area. While this process involves a high degree of management judgment, the allowance for credit losses is based on a comprehensive, well documented, and consistently applied analysis of the Company’s loan portfolio. This analysis takes into consideration all available information existing as of the financial statement date, including environmental factors such as economic, industry, geographical and political factors, when considered applicable. The relative level of allowance for credit losses is reviewed and compared to industry peers. This review encompasses levels of total non-performing loans, portfolio mix, portfolio concentrations and overall levels of net charge-off. Historical trending of both the Company’s results and the industry peers is also reviewed to analyze comparative significance.

83

Allowance for Credit Losses

The following table summarizes the activity in our allowance for credit losses, specifically related to loans and unfunded lending-related commitments, during the last five fiscal years.

(Dollars in thousands)20242023202220212020Allowance for credit losses at beginning of year$427,265 $357,448 $299,653 $379,910 $158,461 Cumulative effect adjustment from the adoption of ASU 2016-13— 741 — — 47,344 Provision for credit losses - Other85,390 114,531 78,179 (59,280)214,235 Provision for credit losses - Day 1 on non-PCD assets acquired during the period15,547 — — — — Initial allowance for credit losses recognized on PCD assets acquired during the period3,004 — — 470 — Other adjustments (207)47 (108)3 179 Charge-offs:Commercial48,864 15,713 14,141 20,801 18,293 Commercial real estate22,127 15,228 1,379 3,293 15,960 Home equity74 227 432 336 2,061 Residential real estate175 192 471 1,082 891 Premium finance receivables – property & casualty37,515 21,684 14,240 9,020 15,472 Premium finance receivables – life insurance4 173