Regulatory Matters

12 Months Ended

Dec. 31, 2012

Regulatory Capital Requirements [Abstract]

Regulatory Matters

Regulatory Matters

Banking laws place restrictions upon the amount of dividends which can be paid to Wintrust by the banks. Based on these laws, the banks could, subject to minimum capital requirements, declare dividends to Wintrust without obtaining regulatory approval in an amount not exceeding (a) undivided profits, and (b) the amount of net income reduced by dividends paid for the current and prior two years. During 2012, 2011 and 2010, cash dividends totaling $45.0 million, $27.8 million and $11.5 million, respectively, were paid to Wintrust by the banks. As of January 1, 2013, the banks had approximately $136.7 million available to be paid as dividends to Wintrust without prior regulatory approval and without reducing their capital below the well-capitalized level.

The banks are also required by the Federal Reserve Act to maintain reserves against deposits. Reserves are held either in the form of vault cash or balances maintained with the Federal Reserve Bank and are based on the average daily deposit balances and statutory reserve ratios prescribed by the type of deposit account. At December 31, 2012 and 2011, reserve balances of approximately $160.2 million and $122.2 million, respectively, were required to be maintained at the Federal Reserve Bank.

The Company and the banks are subject to various regulatory capital requirements administered by the federal banking agencies. Failure to meet minimum capital requirements can initiate certain mandatory — and possibly additional discretionary—actions by regulators that, if undertaken, could have a direct material effect on the Company’s financial statements. Under capital adequacy guidelines and the regulatory framework for prompt corrective action, the Company and the banks must meet specific capital guidelines that involve quantitative measures of the Company’s assets, liabilities, and certain off-balance-sheet items as calculated under regulatory accounting practices. The Company’s and the banks’ capital amounts and classification are also subject to qualitative judgments by the regulators about components, risk weightings, and other factors.

Quantitative measures established by regulation to ensure capital adequacy require the Company and the banks to maintain minimum amounts and ratios of total and Tier 1 capital (as defined in the regulations) to risk-weighted assets (as defined) and Tier 1 leverage capital (as defined) to average quarterly assets (as defined).

The Federal Reserve’s capital guidelines require bank holding companies to maintain a minimum ratio of qualifying total capital to risk-weighted assets of 8.0%, of which at least 4.0% must be in the form of Tier 1 Capital. The Federal Reserve also requires a minimum tangible Tier 1 leverage ratio (Tier 1 Capital to total assets) of 3.0% for strong bank holding companies (those rated a composite “1” under the Federal Reserve’s rating system). For all other banking holding companies, the minimum tangible Tier 1 leverage ratio is 4.0%. In addition the Federal Reserve continues to consider the tangible Tier 1 leverage ratio in evaluating proposals for expansion or new activities. As reflected in the following table, the Company met all minimum capital requirements at December 31, 2012 and 2011:

	2012		2011
Total Capital to Risk Weighted Assets	13.1	%	13.0	%
Tier 1 Capital to Risk Weighted Assets	12.1	%	11.8	%
Tier 1 Leverage Ratio	10.0	%	9.4	%

Wintrust is designated as a financial holding company. Bank holding companies approved as financial holding companies may engage in an expanded range of activities, including the businesses conducted by its wealth management subsidiaries. As a financial holding company, Wintrust’s banks are required to maintain their capital positions at the “well-capitalized” level. As of December 31, 2012, the banks were categorized as well capitalized under the regulatory framework for prompt corrective action. The ratios required for the banks to be “well capitalized” by regulatory definition are 10.0%, 6.0%, and 5.0% for Total Capital to Risk-Weighted Assets, Tier 1 Capital to Risk-Weighted Assets and Tier 1 Leverage Ratio, respectively.

The banks’ actual capital amounts and ratios as of December 31, 2012 and 2011 are presented in the following table:

(Dollars in thousands)	December 31, 2012								December 31, 2011
	Actual				To Be Well Capitalized by Regulatory Definition				Actual				To Be Well Capitalized by Regulatory Definition
	Amount		Ratio		Amount		Ratio		Amount		Ratio		Amount		Ratio
Total Capital (to Risk Weighted Assets):
Lake Forest Bank	$	226,234	11.0	%	$	205,188	10.0	%	$	223,451	11.0	%	$	203,441	10.0	%
Hinsdale Bank	154,677		12.2		126,837		10.0		148,804		12.3		120,808		10.0
North Shore Community Bank	202,823		11.5		176,124		10.0		176,141		11.2		157,708		10.0
Libertyville Bank	116,818		11.9		97,880		10.0		121,105		13.2		91,887		10.0
Barrington Bank	148,382		13.5		109,526		10.0		126,516		12.7		99,813		10.0
Crystal Lake Bank	84,310		14.5		58,091		10.0		79,963		13.0		61,523		10.0
Northbrook Bank	139,603		12.2		114,057		10.0		149,325		14.4		103,395		10.0
Schaumburg Bank	68,305		11.8		57,946		10.0		58,860		12.9		45,660		10.0
Village Bank	92,787		11.5		80,441		10.0		82,743		11.7		70,753		10.0
Beverly Bank	61,994		11.1		55,697		10.0		40,484		11.7		34,562		10.0
Town Bank	83,144		11.5		72,373		10.0		83,099		12.2		68,122		10.0
Wheaton Bank	71,097		13.6		52,450		10.0		59,164		11.9		49,551		10.0
State Bank of the Lakes	71,178		11.5		61,886		10.0		68,673		11.1		61,683		10.0
Old Plank Trail Bank	74,445		14.7		50,582		10.0		33,826		12.2		27,724		10.0
St. Charles Bank	66,079		11.3		58,341		10.0		61,738		11.5		53,868		10.0
Tier 1 Capital (to Risk Weighted Assets):
Lake Forest Bank	$	209,699	10.2	%	$	123,113	6.0	%	$	202,206	9.9	%	$	122,065	6.0	%
Hinsdale Bank	145,380		11.5		76,102		6.0		134,488		11.1		72,485		6.0
North Shore Community Bank	145,488		8.3		105,675		6.0		124,202		7.9		94,625		6.0
Libertyville Bank	105,251		10.8		58,728		6.0		93,613		10.2		55,132		6.0
Barrington Bank	140,037		12.8		65,716		6.0		119,534		12.0		59,888		6.0
Crystal Lake Bank	77,962		13.4		34,855		6.0		73,235		11.9		36,914		6.0
Northbrook Bank	125,192		11.0		68,434		6.0		136,273		13.2		62,037		6.0
Schaumburg Bank	62,538		10.8		34,768		6.0		53,741		11.8		27,396		6.0
Village Bank	86,435		10.7		48,265		6.0		77,692		11.0		42,452		6.0
Beverly Bank	59,440		10.7		33,418		6.0		37,612		10.9		20,737		6.0
Town Bank	76,824		10.6		43,424		6.0		75,157		11.0		40,873		6.0
Wheaton Bank	64,509		12.3		31,470		6.0		52,911		10.7		29,730		6.0
State Bank of the Lakes	61,521		9.9		37,131		6.0		57,627		9.3		37,010		6.0
Old Plank Trail Bank	66,170		13.1		30,349		6.0		29,072		10.5		16,634		6.0
St. Charles Bank	60,753		10.4		35,004		6.0		51,874		9.6		32,321		6.0
Tier 1 Leverage Ratio:
Lake Forest Bank	$	209,699	8.8	%	$	119,601	5.0	%	$	202,206	7.9	%	$	127,653	5.0	%
Hinsdale Bank	145,380		8.7		83,238		5.0		134,488		9.2		73,227		5.0
North Shore Community Bank	145,488		7.2		101,553		5.0		124,202		7.3		85,389		5.0
Libertyville Bank	105,251		8.9		59,379		5.0		93,613		8.1		58,017		5.0
Barrington Bank	140,037		9.7		72,531		5.0		119,534		9.8		61,060		5.0
Crystal Lake Bank	77,962		10.3		37,971		5.0		73,235		9.7		37,696		5.0
Northbrook Bank	125,192		7.5		83,244		5.0		136,273		7.2		94,611		5.0
Schaumburg Bank	62,538		8.7		36,061		5.0		53,741		9.2		29,335		5.0
Village Bank	86,435		9.0		48,068		5.0		77,692		9.0		43,306		5.0
Beverly Bank	59,440		12.3		24,127		5.0		37,612		9.7		19,446		5.0
Town Bank	76,824		9.4		40,671		5.0		75,157		9.9		37,801		5.0
Wheaton Bank	64,509		8.9		36,205		5.0		52,911		7.7		34,456		5.0
State Bank of the Lakes	61,521		8.4		36,570		5.0		57,627		8.0		35,813		5.0
Old Plank Trail Bank	66,170		8.9		37,380		5.0		29,072		9.0		16,137		5.0
St. Charles Bank	60,753		9.4		32,170		5.0		51,874		8.3		31,101		5.0

Wintrust’s mortgage banking division and broker/dealer subsidiary are also required to maintain minimum net worth capital requirements with various governmental agencies. The mortgage banking division’s net worth requirements are governed by the Department of Housing and Urban Development and the broker/dealer’s net worth requirements are governed by the SEC. As of December 31, 2012, these subsidiaries met their minimum net worth capital requirements.