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 10 — 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 2018 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, 2019			March 31, 2018			$ Change in Contribution			% Change in Contribution
Net interest income:
Community Banking	$	211,424		$	183,254		$	28,170		15	%
Specialty Finance	37,706			32,912			4,794			15
Wealth Management	7,502			4,441			3,061			69
Total Operating Segments	256,632			220,607			36,025			16
Intersegment Eliminations	5,354			4,475			879			20
Consolidated net interest income	$	261,986		$	225,082		$	36,904		16	%
Non-interest income:
Community Banking	$	48,267		$	56,547		$	(8,280	)	(15	)%
Specialty Finance	19,606			15,725			3,881			25
Wealth Management	25,035			22,958			2,077			9
Total Operating Segments	92,908			95,230			(2,322		)	(2	)
Intersegment Eliminations	(11,251		)	(9,551		)	(1,700		)	(18	)
Consolidated non-interest income	$	81,657		$	85,679		$	(4,022	)	(5	)%
Net revenue:
Community Banking	$	259,691		$	239,801		$	19,890		8	%
Specialty Finance	57,312			48,637			8,675			18
Wealth Management	32,537			27,399			5,138			19
Total Operating Segments	349,540			315,837			33,703			11
Intersegment Eliminations	(5,897		)	(5,076		)	(821		)	(16	)
Consolidated net revenue	$	343,643		$	310,761		$	32,882		11	%
Segment profit:
Community Banking	$	60,326		$	57,280		$	3,046		5	%
Specialty Finance	21,848			20,000			1,848			9
Wealth Management	6,972			4,701			2,271			48
Consolidated net income	$	89,146		$	81,981		$	7,165		9	%
Segment assets:
Community Banking	$	25,997,025		$	23,213,499		$	2,783,526		12	%
Specialty Finance	5,234,210			4,568,906			665,304			15
Wealth Management	1,127,386			674,367			453,019			67
Consolidated total assets	$	32,358,621		$	28,456,772		$	3,901,849		14	%