Capital Adequacy and Regulatory Compliance - The Company has deferred 100% of the day-one impact of adopting CECL for two years and 25% of the cumulative increase or decrease in the allowance for credit losses since adoption[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 are expected to continue exceeding all applicable well-capitalized regulatory capital requirements and the Capital Conservation Buffer of 2.5%[73]. - The Company must maintain a Tier 1 Leverage Ratio of 4.0% or greater, with the current ratio at 9.4%[74]. - The Capital Conservation Buffer is fully phased in at 2.5%, impacting the required minimum risk-based capital ratios[71]. Special Assessments and Regulatory Fees - The Company recorded a special assessment payment of $34.4 million in Q4 2023 related to the FDIC's recoupment of losses from bank failures[87]. - The FDIC's special assessment will be collected over eight quarterly installments starting June 2024[87]. Compliance and Regulatory Changes - The Corporate Transparency Act (CTA) requires the U.S. Treasury Department's Financial Crimes Enforcement Network (FinCEN) to establish a national beneficial ownership information registry, with compliance costs expected to increase as the company adapts to new requirements[93]. - The Bank Secrecy Act (BSA) mandates financial institutions to maintain an anti-money laundering (AML) program, including monitoring and reporting suspicious transactions, which is subject to regulatory scrutiny[91]. - The Anti-Money Laundering Act of 2020 (AMLA) may significantly alter due diligence and reporting requirements for banks, promoting increased information-sharing and technology use[92]. - The SEC's final rules require listed companies to implement clawback policies for incentive-based compensation in the event of financial restatements, with compliance required by November 28, 2023[109]. - The California Consumer Privacy Act (CCPA) imposes obligations on businesses regarding personal information, with potential civil penalties for violations, and similar laws have been adopted in other states[98]. - The Federal Reserve, OCC, and FDIC require banking organizations to notify regulators of significant computer-security incidents within 36 hours, impacting operational stability[100]. - The Gramm-Leach-Bliley Act (GLB Act) requires financial institutions to implement comprehensive information security programs to protect customer information, with potential amendments needed as regulations evolve[97]. - The company is subject to complex and evolving data privacy and cybersecurity laws, which could increase compliance costs and potential liabilities[101]. Workforce and Employee Development - Wintrust employed 5,903 full-time equivalent employees as of December 31, 2024, 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 invested more than 177,000 total hours in training for team members in 2024, maintaining an online training catalog with over 21,000 course offerings[133]. - Over 425 leaders participated in leadership development programs in 2024, supporting the development of future leaders[134]. - Wintrust's workforce is composed of 56% women and 33% racial and ethnic minorities, reflecting its commitment to inclusion[132]. - The company has a robust total rewards package designed to attract and retain talent, including competitive compensation and comprehensive benefits[131]. - Wintrust's mentoring program, launched in 2023, had over 1,300 participants, with 33% being minorities[132]. Operational Changes and Strategic Initiatives - Wintrust Investments plans to transition its wealth management business support to LPL by late January 2025, allowing a focus on growth while outsourcing operational support[107]. - The company consolidated its consumer mortgage loan origination and servicing operations primarily within Wintrust Mortgage to ensure compliance with mortgage-related regulations[122]. Environmental Impact and Sustainability - 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]. - The Company’s climate-focused asset portfolios reached approximately $135 million as of December 31, 2024[138]. Financial Performance and Risk Management - The Static Shock Scenario indicates a potential decrease in net interest income of (1.6)% for +200 basis points at December 31, 2024[525]. - The Ramp Scenario shows a potential decrease in net interest income of (0.2)% for +200 basis points at December 31, 2024[525]. - The Company has executed various derivative instruments to hedge variable-rate loan exposures as part of its interest rate risk management strategy[526]. - The Company entered into covered call option transactions to economically hedge positions and enhance total returns from related securities[527]. - There were no covered call options outstanding as of December 31, 2024 or 2023[528].
Wintrust Financial Corp Series F Pfd(WTFCN) - 2024 Q4 - Annual Report