Capital and Regulatory Compliance - The Company deferred 100% of the day-one effect of adopting CECL for two years and 25% of the cumulative increase or decrease in the allowance for credit losses since the adoption of CECL [68]. - As of December 31, 2024, the Company's Tier 1 Capital Ratio was 10.7%, exceeding the well-capitalized standard of 6.0% [74]. - The Common Equity Tier 1 Capital Ratio was 9.9%, surpassing the minimum requirement of 4.5% [74]. - The Total Capital Ratio stood at 12.3%, well above the required minimum of 8.0% [74]. - The Company and its subsidiary banks maintained a Capital Conservation Buffer of 2.5% [71]. - As of December 31, 2024, all of the Company's banks were categorized as "well-capitalized" and met additional requirements under the Capital Conservation Buffer [81]. - The Company must comply with federal and state law limitations on dividend payments due to regulatory capital requirements [77]. - The Federal Reserve may require bank holding companies to maintain capital ratios substantially in excess of mandated minimum levels based on economic conditions [69]. Special Assessments and Regulatory Changes - The Company recorded $34.4 million in special assessment payments in Q4 2023 related to the FDIC's special assessment for bank failures [87]. - The FDIC's special assessment will continue for a total of eight quarterly installments starting June 2024 [87]. Compliance and Reporting Requirements - The Corporate Transparency Act (CTA) requires the U.S. Treasury Department's FinCEN to establish a national beneficial ownership information registry, with reporting requirements effective January 1, 2024 [93]. - The final Beneficial Ownership Information Reporting Requirements rule mandates certain reporting companies to file beneficial ownership information reports, impacting compliance costs for the company [93]. - The Anti-Money Laundering Act of 2020 (AMLA) may significantly alter due diligence and reporting requirements for banks over the next few years [92]. - The company is subject to extensive regulations under federal and state securities laws, impacting all aspects of its securities businesses [103]. - Compliance with data privacy and cybersecurity laws is evolving, with potential increased costs and risks associated with new state laws and federal proposals [98]. - The company must adhere to the Bank Secrecy Act (BSA) and USA PATRIOT Act, requiring maintenance of an anti-money laundering program and employee training [91]. - The company is required to provide privacy notices to customers and implement a comprehensive information security program under the Gramm-Leach-Bliley Act (GLB Act) [97]. Workforce and Employee Development - As of December 31, 2024, Wintrust employed 5,903 full-time equivalent employees, with 98% classified as full-time [129]. - In 2024, Wintrust filled over 1,390 positions, with 53% of new hires identifying as female and 41% as racial or ethnic minorities [130]. - The turnover rate for Wintrust in 2024 was approximately 12%, with voluntary departures accounting for about 75% of total turnover [130]. - Wintrust's workforce is composed of 56% women and 33% racial and ethnic minorities [132]. - In 2024, Wintrust invested more than 177,000 total hours in training for team members [133]. - Over 425 leaders participated in leadership development programs in 2024 [134]. - Wintrust has a robust total rewards package designed to attract and retain talent, including competitive compensation and comprehensive benefits [131]. - The company has implemented a mentoring program, "Paired To Win," with over 1,300 employees participating, including 33% minorities [132]. - Wintrust maintains an online training catalog with over 21,000 course offerings for employee development [133]. Environmental Impact - The corporate campus greenhouse gas carbon emissions (CO2e) totaled 3,692 tons in 2024, a decrease from 3,938 tons in 2023 [137]. - The aggregate measurement of greenhouse gas carbon emissions from the corporate campus and retail banking locations totaled 17,699 tons in 2024, down from 18,607 tons in 2023 [137]. - Climate-focused assets in the Company's portfolios reached approximately $135 million as of December 31, 2024 [138]. Interest Rate Risk Management - The Company aims to manage interest rate risk through various derivative financial instruments, including interest rate swaps and options [526]. - The Static Shock Scenario indicates a potential decrease in net interest income of (1.6)% under a +200 basis points increase in interest rates as of December 31, 2024 [525]. - The Ramp Scenario shows a potential decrease in net interest income of (0.2)% under a +200 basis points increase in interest rates as of December 31, 2024 [525]. - The Company has executed various derivative instruments to hedge variable-rate loan exposures in response to the current interest rate cycle [526]. - There were no covered call options outstanding as of December 31, 2024 or 2023, indicating a shift in strategy regarding interest rate risk management [528].
Wintrust Financial Corporation(WTFCM) - 2024 Q4 - Annual Report