Segment Information

9 Months Ended

Sep. 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)	September 30, 2016			September 30, 2015
Net interest income:
Community Banking	$	150,159		$	132,542		$	17,617		13	%
Specialty Finance	25,543			24,657			886			4
Wealth Management	4,835			4,368			467			11
Total Operating Segments	180,537			161,567			18,970			12
Intersegment Eliminations	4,099			3,973			126			3
Consolidated net interest income	$	184,636		$	165,540		$	19,096		12	%
Non-interest income:
Community Banking	$	62,730		$	45,574		$	17,156		38	%
Specialty Finance	12,226			8,264			3,962			48
Wealth Management	20,045			18,362			1,683			9
Total Operating Segments	95,001			72,200			22,801			32
Intersegment Eliminations	(8,397		)	(7,247		)	(1,150		)	(16	)
Consolidated non-interest income	$	86,604		$	64,953		$	21,651		33	%
Net revenue:
Community Banking	$	212,889		$	178,116		$	34,773		20	%
Specialty Finance	37,769			32,921			4,848			15
Wealth Management	24,880			22,730			2,150			9
Total Operating Segments	275,538			233,767			41,771			18
Intersegment Eliminations	(4,298		)	(3,274		)	(1,024		)	(31	)
Consolidated net revenue	$	271,240		$	230,493		$	40,747		18	%
Segment profit:
Community Banking	$	37,527		$	22,723		$	14,804		65	%
Specialty Finance	12,767			12,545			222			2
Wealth Management	2,821			3,087			(266		)	(9	)
Consolidated net income	$	53,115		$	38,355		$	14,760		38	%
Segment assets:
Community Banking	$	21,019,002		$	18,497,364		$	2,521,638		14	%
Specialty Finance	3,702,241			2,987,021			715,220			24
Wealth Management	600,516			550,831			49,685			9
Consolidated total assets	$	25,321,759		$	22,035,216		$	3,286,543		15	%

	Nine months ended						$ Change in Contribution			% Change  in Contribution
(Dollars in thousands)	September 30, 2016			September 30, 2015
Net interest income:
Community Banking	$	434,108		$	382,187		$	51,921		14	%
Specialty Finance	71,075			67,041			4,034			6
Wealth Management	13,701			12,837			864			7
Total Operating Segments	518,884			462,065			56,819			12
Intersegment Eliminations	12,531			12,258			273			2
Consolidated net interest income	$	531,415		$	474,323		$	57,092		12	%
Non-interest income:
Community Banking	$	169,210		$	146,739		$	22,471		15	%
Specialty Finance	37,111			25,270			11,841			47
Wealth Management	58,660			56,103			2,557			5
Total Operating Segments	264,981			228,112			36,869			16
Intersegment Eliminations	(24,826		)	(21,605		)	(3,221		)	(15	)
Consolidated non-interest income	$	240,155		$	206,507		$	33,648		16	%
Net revenue:
Community Banking	$	603,318		$	528,926		$	74,392		14	%
Specialty Finance	108,186			92,311			15,875			17
Wealth Management	72,361			68,940			3,421			5
Total Operating Segments	783,865			690,177			93,688			14
Intersegment Eliminations	(12,295		)	(9,347		)	(2,948		)	(32	)
Consolidated net revenue	$	771,570		$	680,830		$	90,740		13	%
Segment profit:
Community Banking	$	106,860		$	76,821		$	30,039		39	%
Specialty Finance	36,283			34,875			1,408			4
Wealth Management	9,124			9,542			(418		)	(4	)
Consolidated net income	$	152,267		$	121,238		$	31,029		26	%