Segment Information

6 Months Ended

Jun. 30, 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)	June 30, 2016			June 30, 2015
Net interest income:
Community Banking	$	142,251		$	126,964		$	15,287		12	%
Specialty Finance	24,352			21,338			3,014			14
Wealth Management	4,383			4,280			103			2
Total Operating Segments	170,986			152,582			18,404			12
Intersegment Eliminations	4,284			4,310			(26		)	(1	)
Consolidated net interest income	$	175,270		$	156,892		$	18,378		12	%
Non-interest income:
Community Banking	$	60,813		$	56,253		$	4,560		8	%
Specialty Finance	12,482			9,135			3,347			37
Wealth Management	19,863			19,013			850			4
Total Operating Segments	93,158			84,401			8,757			10
Intersegment Eliminations	(8,359		)	(7,388		)	(971		)	(13	)
Consolidated non-interest income	$	84,799		$	77,013		$	7,786		10	%
Net revenue:
Community Banking	$	203,064		$	183,217		$	19,847		11	%
Specialty Finance	36,834			30,473			6,361			21
Wealth Management	24,246			23,293			953			4
Total Operating Segments	264,144			236,983			27,161			11
Intersegment Eliminations	(4,075		)	(3,078		)	(997		)	(32	)
Consolidated net revenue	$	260,069		$	233,905		$	26,164		11	%
Segment profit:
Community Banking	$	34,576		$	29,133		$	5,443		19	%
Specialty Finance	12,044			11,378			666			6
Wealth Management	3,421			3,320			101			3
Consolidated net income	$	50,041		$	43,831		$	6,210		14	%
Segment assets:
Community Banking	$	20,190,707		$	17,312,377		$	2,878,330		17	%
Specialty Finance	3,645,077			2,931,838			713,239			24
Wealth Management	584,832			545,987			38,845			7
Consolidated total assets	$	24,420,616		$	20,790,202		$	3,630,414		17	%

	Six months ended						$ Change in Contribution			% Change  in Contribution
(Dollars in thousands)	June 30, 2016			June 30, 2015
Net interest income:
Community Banking	$	283,949		$	249,645		$	34,304		14	%
Specialty Finance	45,532			42,384			3,148			7
Wealth Management	8,866			8,469			397			5
Total Operating Segments	338,347			300,498			37,849			13
Intersegment Eliminations	8,432			8,285			147			2
Consolidated net interest income	$	346,779		$	308,783		$	37,996		12	%
Non-interest income:
Community Banking	$	106,480		$	101,165		$	5,315		5	%
Specialty Finance	24,885			17,006			7,879			46
Wealth Management	38,615			37,741			874			2
Total Operating Segments	169,980			155,912			14,068			9
Intersegment Eliminations	(16,429		)	(14,358		)	(2,071		)	(14	)
Consolidated non-interest income	$	153,551		$	141,554		$	11,997		8	%
Net revenue:
Community Banking	$	390,429		$	350,810		$	39,619		11	%
Specialty Finance	70,417			59,390			11,027			19
Wealth Management	47,481			46,210			1,271			3
Total Operating Segments	508,327			456,410			51,917			11
Intersegment Eliminations	(7,997		)	(6,073		)	(1,924		)	(32	)
Consolidated net revenue	$	500,330		$	450,337		$	49,993		11	%
Segment profit:
Community Banking	$	69,333		$	54,098		$	15,235		28	%
Specialty Finance	23,516			22,330			1,186			5
Wealth Management	6,303			6,455			(152		)	(2	)
Consolidated net income	$	99,152		$	82,883		$	16,269		20	%