WTFC Wintrust Financial Corporation

Risks

• Deterioration in economic conditions may materially adversely affect the financial services industry and our business, financial condition, results of operations and cash flows.
• Since our business is concentrated in the Chicago metropolitan and southern Wisconsin market areas, economic declines in the economy of this region could adversely affect our business.
• Changes in U.S. trade policies, including the imposition of tariffs and retaliatory tariffs, may adversely impact our business, financial condition and results of operations.
• If our allowance for loan losses is not sufficient to absorb losses that may occur in our loan portfolio, our financial condition and liquidity could suffer.
• A significant portion of our loan portfolio is comprised of commercial loans, the repayment of which is largely dependent upon the financial success and economic viability of the borrower.
• A substantial portion of our loan portfolio is secured by real estate, in particular commercial real estate. Deterioration in the real estate markets could lead to additional losses, which could have a material adverse effect on our financial condition and results of operations.
• Events impacting collateral consisting of real property could lead to additional losses which could have a material adverse effect on our financial condition and results of operations.
• Any inaccurate assumptions in our analytical and forecasting models could cause us to miscalculate our projected revenue, capital, liquidity or losses, which could adversely affect our financial condition.
• Our liquidity position may be negatively impacted if economic conditions do not continue to improve or if they decline.
• The financial services industry is very competitive, and if we are not able to compete effectively, we may lose market share and our business could suffer.
• If we are unable to continue to identify favorable acquisitions or successfully integrate our acquisitions, our growth may be limited and our results of operations could suffer.
• Our participation in FDIC-assisted acquisitions may present additional risks to our financial condition and results of operations.
• Damage to our reputation may harm our business.
• An actual or perceived reduction in our financial strength may cause others to reduce or cease doing business with us, which could result in a decrease in our net interest income and fee revenues.
• If our credit rating is lowered, our financing costs could increase.
• If our growth requires us to raise additional capital, that capital may not be available when it is needed or the cost of that capital may be very high.
• Disruption in the financial markets could result in lower fair values for our investment securities portfolio.
• New lines of business and new products and services are essential to our ability to compete but may subject us to additional risks.
• Our operational or security systems or infrastructure, or those of third parties, could fail or be breached, which could disrupt our business and adversely impact our results of operations, liquidity and financial condition, as well as cause legal or reputational harm.
• We face security risks, including denial of service attacks, hacking, social engineering attacks targeting our colleagues and customers, malware intrusion and data corruption attempts, in addition to the resulting identity theft that could result in the disclosure of confidential information, all of which could adversely affect our business or reputation, and create significant legal and financial exposure.
• Our vendors may be responsible for failures that adversely affect our operations.
• We issue debit cards, and debit card transactions pose a particular cybersecurity risk that is outside of our control.
• We depend on the accuracy and completeness of information we receive about our customers and counterparties to make credit decisions.
• If we are unable to attract and retain experienced and qualified personnel, our ability to provide high quality service will be diminished, we may lose key customer relationships, and our results of operations may suffer.
• We are subject to environmental liability risk associated with lending activities.
• We are subject to claims and legal actions that could negatively affect our results of operations or financial condition.
• Losses incurred in connection with actual or projected repurchases and indemnification payments related to mortgages that we have sold into the secondary market may exceed our financial statement reserves and we may be required to increase such reserves in the future. Increases to our reserves and losses incurred in connection with actual loan repurchases and indemnification payments could have a material adverse effect on our business, financial condition, results of operations or cash flows.
• Consumers may decide not to use banks to complete their financial transactions, which could adversely affect our business and results of operations.
• We may be adversely impacted by the soundness of other financial institutions.
• De novo operations often involve significant expenses and delayed returns and may negatively impact Wintrust's profitability.
• We are subject to examinations and challenges by tax authorities that may impact our financial results.
• Changes in federal and state tax laws and changes in interpretation of existing laws can impact our financial results
• Changes in accounting policies or accounting standards could materially adversely affect how we report our financial results and financial condition.
• We are a bank holding company, and our sources of funds, including to pay dividends, are limited.
• Anti-takeover provisions could negatively impact our shareholders.
• Uncertainty about the future of LIBOR may adversely affect our business.
• Our business could be adversely affected by the occurrence of extraordinary events, such as acts of war, terrorist attacks, natural disasters and public health threats.
• If we fail to meet our regulatory capital ratios, we may be forced to raise capital or sell assets.
• Changes in the United States’ monetary policy may restrict our ability to conduct our business in a profitable manner.
• Legislative and regulatory actions taken now or in the future regarding the financial services industry may significantly increase our costs or limit our ability to conduct our business in a profitable manner.
• Financial reform legislation and increased regulatory rigor around consumer protection mortgage-related issues may reduce our ability to market our products to consumers and may limit our ability to profitably operate our mortgage business.
• Federal, state and local consumer lending laws may restrict our ability to originate certain mortgage loans or increase our risk of liability with respect to such loans and could increase our cost of doing business.
• Regulatory initiatives regarding bank capital requirements may require heightened capital.
• Our FDIC insurance premiums may increase, which could negatively impact our results of operations.
• Non-compliance with the USA PATRIOT Act, BSA or other laws and regulations could result in fines or sanctions.
• Our premium finance business may involve a higher risk of delinquency or collection than our other lending operations, and could expose us to losses.
• Widespread financial difficulties or credit downgrades among commercial and life insurance providers could lessen the value of the collateral securing our premium finance loans and impair the financial condition and liquidity of FIRST Insurance Funding, Wintrust Life Finance and FIFC Canada.
• Our wealth management business in general, and Wintrust Investments' brokerage operation, in particular, exposes us to certain risks associated with the securities industry.