Segment Information

9 Months Ended

Sep. 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)	September 30, 2015			September 30, 2014
Net interest income:
Community Banking	$	132,542		$	121,998		$	10,544		9	%
Specialty Finance	24,657			21,903			2,754			13
Wealth Management	4,368			3,877			491			13
Total Operating Segments	161,567			147,778			13,789			9
Intersegment Eliminations	3,973			3,892			81			2
Consolidated net interest income	$	165,540		$	151,670		$	13,870		9	%
Non-interest income:
Community Banking	$	45,574		$	38,274		$	7,300		19	%
Specialty Finance	8,264			8,320			(56		)	(1	)
Wealth Management	18,362			18,191			171			1
Total Operating Segments	72,200			64,785			7,415			11
Intersegment Eliminations	(7,247		)	(6,833		)	(414		)	(6	)
Consolidated non-interest income	$	64,953		$	57,952		$	7,001		12	%
Net revenue:
Community Banking	$	178,116		$	160,272		$	17,844		11	%
Specialty Finance	32,921			30,223			2,698			9
Wealth Management	22,730			22,068			662			3
Total Operating Segments	233,767			212,563			21,204			10
Intersegment Eliminations	(3,274		)	(2,941		)	(333		)	(11	)
Consolidated net revenue	$	230,493		$	209,622		$	20,871		10	%
Segment profit:
Community Banking	$	22,723		$	26,184		$	(3,461	)	(13	)%
Specialty Finance	12,545			10,973			1,572			14
Wealth Management	3,087			3,067			20			1
Consolidated net income	$	38,355		$	40,224		$	(1,869	)	(5	)%
Segment assets:
Community Banking	$	18,505,830		$	15,945,744		$	2,560,086		16	%
Specialty Finance	2,987,236			2,704,591			282,645			10
Wealth Management	550,864			519,010			31,854			6
Consolidated total assets	$	22,043,930		$	19,169,345		$	2,874,585		15	%

	Nine months ended						$ Change in Contribution			% Change  in Contribution
(Dollars in thousands)	September 30, 2015			September 30, 2014
Net interest income:
Community Banking	$	382,187		$	359,981		$	22,206		6	%
Specialty Finance	67,041			60,907			6,134			10
Wealth Management	12,837			11,982			855			7
Total Operating Segments	462,065			432,870			29,195			7
Intersegment Eliminations	12,258			11,986			272			2
Consolidated net interest income	$	474,323		$	444,856		$	29,467		7	%
Non-interest income:
Community Banking	$	146,739		$	98,930		$	47,809		48	%
Specialty Finance	25,270			24,656			614			2
Wealth Management	56,103			54,367			1,736			3
Total Operating Segments	228,112			177,953			50,159			28
Intersegment Eliminations	(21,605		)	(20,370		)	(1,235		)	(6	)
Consolidated non-interest income	$	206,507		$	157,583		$	48,924		31	%
Net revenue:
Community Banking	$	528,926		$	458,911		$	70,015		15	%
Specialty Finance	92,311			85,563			6,748			8
Wealth Management	68,940			66,349			2,591			4
Total Operating Segments	690,177			610,823			79,354			13
Intersegment Eliminations	(9,347		)	(8,384		)	(963		)	(11	)
Consolidated net revenue	$	680,830		$	602,439		$	78,391		13	%
Segment profit:
Community Banking	$	76,821		$	73,393		$	3,428		5	%
Specialty Finance	34,875			30,257			4,618			15
Wealth Management	9,542			9,615			(73		)	(1	)
Consolidated net income	$	121,238		$	113,265		$	7,973		7	%