Condensed Parent Company Financial Statements

Condensed parent company only financial statements of Wintrust follow:

Statements of Financial Condition



	December 31,
(In thousands)	2018		2017
Assets
Cash	$	37,931	$	78,045
Available-for-sale debt securities and equity securities with readily determinable fair value	12,765		14,461
Investment in and receivable from subsidiaries	3,660,968		3,249,202
Loans, net of unearned income	1,200		1,845
Allowance for loan losses	—		—
Net loans	$	1,200	$	1,845
Goodwill	8,371		8,371
Other assets	206,902		174,781
Total assets	$	3,928,137	$	3,526,705

Liabilities and Shareholders’ Equity
Other liabilities	$	75,609	$	66,909
Subordinated notes	139,210		139,088
Other borrowings	192,182		90,203
Junior subordinated debentures	253,566		253,566
Shareholders’ equity	3,267,570		2,976,939
Total liabilities and shareholders’ equity	$	3,928,137	$	3,526,705

Statements of Income



	Years Ended December 31,
(In thousands)	2018			2017		2016
Income
Dividends and other revenue from subsidiaries	$	171,388		$	155,969	$	89,184
Other income	4			2,488		4,344
Total income	$	171,392		$	158,457	$	93,528
Expenses
Interest expense	$	22,375		$	19,207	$	18,498
Salaries and employee benefits	64,726			50,683		34,299
Other expenses	108,038			74,618		62,778
Total expenses	$	195,139		$	144,508	$	115,575
(Loss) income before income taxes and equity in undistributed income of subsidiaries	$	(23,747	)	$	13,949	$	(22,047	)
Income tax benefit	34,186			47,139		31,061
Income before equity in undistributed net income of subsidiaries	$	10,439		$	61,088	$	9,014
Equity in undistributed net income of subsidiaries	332,727			196,594		197,861
Net income	$	343,166		$	257,682	$	206,875

Statements of Cash Flows



	Years Ended December 31,
(In thousands)	2018			2017			2016
Operating Activities:
Net income	$	343,166		$	257,682		$	206,875
Adjustments to reconcile net income to net cash provided by (used for) operating activities
Provision for credit losses	56			—			—
Gain on early extinguishment of debt	—			—			(4,305		)
Depreciation and amortization	11,943			10,783			10,400
Deferred income tax expense (benefit)	502			2,809			(601		)
Stock-based compensation expense	6,025			5,185			3,762
Decrease (increase) in other assets	3,685			1,956			(319		)
Increase in other liabilities	650			9,967			9,618
Equity in undistributed net income of subsidiaries	(332,727		)	(196,594		)	(197,861		)
Net Cash Provided by Operating Activities	$	33,300		$	91,788		$	27,569
Investing Activities:
Capital distributions from (contributions to) subsidiaries, net	$	4,632		$	(42,736	)	$	(118,575	)
Net cash paid for acquisitions, net	(87,081		)	—			(61,308		)
Other investing activity, net	(57,143		)	(28,132		)	(18,051		)
Net Cash Used for Investing Activities	$	(139,592	)	$	(70,868	)	$	(197,934	)
Financing Activities:
Increase (decrease) in subordinated notes, other borrowings and junior subordinated debentures, net	$	101,910		$	20,008		$	(26,251	)
Proceeds from the issuance of common stock, net	—			—			152,911
Issuance of common shares resulting from exercise of stock options, employee stock purchase plan and conversion of common stock warrants	15,903			28,229			15,828
Dividends paid	(50,987		)	(40,543		)	(38,568		)
Common stock repurchases for tax withholdings related to stock-based compensation	(648		)	(397		)	(616		)
Net Cash Provided by Financing Activities	$	66,178		$	7,297		$	103,304
Net (Decrease) Increase in Cash and Cash Equivalents	$	(40,114	)	$	28,217		$	(67,061	)
Cash and Cash Equivalents at Beginning of Year	78,045			49,828			116,889
Cash and Cash Equivalents at End of Year	$	37,931		$	78,045		$	49,828