Segment Information

3 Months Ended

Mar. 31, 2016

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 and leases originated by the specialty finance segment and sold or assigned 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 those described in “Summary of Significant Accounting Policies” in Note 1 of the Company’s 2015 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)	March 31, 2016			March 31, 2015
Net interest income:
Community Banking	$	141,698		$	122,681		$	19,017		16	%
Specialty Finance	21,180			21,046			134			1
Wealth Management	4,483			4,189			294			7
Total Operating Segments	167,361			147,916			19,445			13
Intersegment Eliminations	4,148			3,975			173			4
Consolidated net interest income	$	171,509		$	151,891		$	19,618		13	%
Non-interest income:
Community Banking	$	45,667		$	44,912		$	755		2	%
Specialty Finance	12,403			7,871			4,532			58
Wealth Management	18,752			18,728			24			—
Total Operating Segments	76,822			71,511			5,311			7
Intersegment Eliminations	(8,070		)	(6,970		)	(1,100		)	(16	)
Consolidated non-interest income	$	68,752		$	64,541		$	4,211		7	%
Net revenue:
Community Banking	$	187,365		$	167,593		$	19,772		12	%
Specialty Finance	33,583			28,917			4,666			16
Wealth Management	23,235			22,917			318			1
Total Operating Segments	244,183			219,427			24,756			11
Intersegment Eliminations	(3,922		)	(2,995		)	(927		)	(31	)
Consolidated net revenue	$	240,261		$	216,432		$	23,829		11	%
Segment profit:
Community Banking	$	34,757		$	24,965		$	9,792		39	%
Specialty Finance	11,472			10,952			520			5
Wealth Management	2,882			3,135			(253		)	(8	)
Consolidated net income	$	49,111		$	39,052		$	10,059		26	%
Segment assets:
Community Banking	$	19,575,709		$	17,039,668		$	2,536,041		15	%
Specialty Finance	3,322,807			2,783,958			538,849			19
Wealth Management	589,652			547,940			41,712			8
Consolidated total assets	$	23,488,168		$	20,371,566		$	3,116,602		15	%