Segment Information

6 Months Ended

Jun. 30, 2015

Segment Reporting [Abstract]

Segment Information

Segment Information

The Company’s operations consist of three primary segments: community banking, specialty finance and wealth management.

The three reportable segments are strategic business units that are separately managed as they offer different products and services and have different marketing strategies. In addition, each segment’s customer base has varying characteristics and each segment has a different regulatory environment. While the Company’s management monitors each of the fifteen bank subsidiaries’ operations and profitability separately, these subsidiaries have been aggregated into one reportable operating segment due to the similarities in products and services, customer base, operations, profitability measures, and economic characteristics.

For purposes of internal segment profitability, management allocates certain intersegment and parent company balances. Management allocates a portion of revenues to the specialty finance segment related to loans originated by the specialty finance segment and sold to the community banking segment. Similarly, for purposes of analyzing the contribution from the wealth management segment, management allocates a portion of the net interest income earned by the community banking segment on deposit balances of customers of the wealth management segment to the wealth management segment. See Note 9 — Deposits, for more information on these deposits. Finally, expenses incurred at the Wintrust parent company are allocated to each segment based on each segment's risk-weighted assets.

The segment financial information provided in the following tables has been derived from the internal profitability reporting system used by management to monitor and manage the financial performance of the Company. The accounting policies of the segments are substantially similar to as those described in “Summary of Significant Accounting Policies” in Note 1 of the Company’s 2014 Form 10-K. The Company evaluates segment performance based on after-tax profit or loss and other appropriate profitability measures common to each segment.

The following is a summary of certain operating information for reportable segments:

	Three months ended						$ Change in Contribution			% Change  in Contribution
(Dollars in thousands)	June 30, 2015			June 30, 2014
Net interest income:
Community Banking	$	126,964		$	121,228		$	5,736		5	%
Specialty Finance	21,338			19,792			1,546			8
Wealth Management	4,280			4,006			274			7
Total Operating Segments	152,582			145,026			7,556			5
Intersegment Eliminations	4,310			4,154			156			4
Consolidated net interest income	$	156,892		$	149,180		$	7,712		5	%
Non-interest income:
Community Banking	$	56,253		$	33,337		$	22,916		69	%
Specialty Finance	9,135			8,455			680			8
Wealth Management	19,013			19,235			(222		)	(1	)
Total Operating Segments	84,401			61,027			23,374			38
Intersegment Eliminations	(7,388		)	(6,925		)	(463		)	(7	)
Consolidated non-interest income	$	77,013		$	54,102		$	22,911		42	%
Net revenue:
Community Banking	$	183,217		$	154,565		$	28,652		19	%
Specialty Finance	30,473			28,247			2,226			8
Wealth Management	23,293			23,241			52			—
Total Operating Segments	236,983			206,053			30,930			15
Intersegment Eliminations	(3,078		)	(2,771		)	(307		)	(11	)
Consolidated net revenue	$	233,905		$	203,282		$	30,623		15	%
Segment profit:
Community Banking	$	29,133		$	24,628		$	4,505		18	%
Specialty Finance	11,378			10,302			1,076			10
Wealth Management	3,320			3,611			(291		)	(8	)
Consolidated net income	$	43,831		$	38,541		$	5,290		14	%
Segment assets:
Community Banking	$	17,321,956		$	15,669,443		$	1,652,513		11	%
Specialty Finance	2,931,975			2,703,761			228,214			8
Wealth Management	545,993			522,477			23,516			5
Consolidated total assets	$	20,799,924		$	18,895,681		$	1,904,243		10	%

	Six months ended						$ Change in Contribution			% Change  in Contribution
(Dollars in thousands)	June 30, 2015			June 30, 2014
Net interest income:
Community Banking	$	249,645		$	237,983		$	11,662		5	%
Specialty Finance	42,384			39,004			3,380			9
Wealth Management	8,469			8,105			364			4
Total Operating Segments	300,498			285,092			15,406			5
Intersegment Eliminations	8,285			8,094			191			2
Consolidated net interest income	$	308,783		$	293,186		$	15,597		5	%
Non-interest income:
Community Banking	$	101,165		$	60,656		$	40,509		67	%
Specialty Finance	17,006			16,336			670			4
Wealth Management	37,741			36,176			1,565			4
Total Operating Segments	155,912			113,168			42,744			38
Intersegment Eliminations	(14,358		)	(13,537		)	(821		)	(6	)
Consolidated non-interest income	$	141,554		$	99,631		$	41,923		42	%
Net revenue:
Community Banking	$	350,810		$	298,639		$	52,171		17	%
Specialty Finance	59,390			55,340			4,050			7
Wealth Management	46,210			44,281			1,929			4
Total Operating Segments	456,410			398,260			58,150			15
Intersegment Eliminations	(6,073		)	(5,443		)	(630		)	(12	)
Consolidated net revenue	$	450,337		$	392,817		$	57,520		15	%
Segment profit:
Community Banking	$	54,098		$	47,209		$	6,889		15	%
Specialty Finance	22,330			19,284			3,046			16
Wealth Management	6,455			6,548			(93		)	(1	)
Consolidated net income	$	82,883		$	73,041		$	9,842		13	%