Segment Information

6 Months Ended

Jun. 30, 2019

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 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)	June 30, 2019			June 30, 2018
Net interest income:
Community Banking	$	214,309		$	196,849		$	17,460		9	%
Specialty Finance	39,397			32,182			7,215			22
Wealth Management	6,936			4,240			2,696			64
Total Operating Segments	260,642			233,271			27,371			12
Intersegment Eliminations	5,560			4,899			661			13
Consolidated net interest income	$	266,202		$	238,170		$	28,032		12	%
Non-interest income:
Community Banking	$	65,370		$	65,705		$	(335	)	(1	)%
Specialty Finance	19,579			16,317			3,262			20
Wealth Management	24,950			23,296			1,654			7
Total Operating Segments	109,899			105,318			4,581			4
Intersegment Eliminations	(11,741		)	(10,085		)	(1,656		)	(16	)
Consolidated non-interest income	$	98,158		$	95,233		$	2,925		3	%
Net revenue:
Community Banking	$	279,679		$	262,554		$	17,125		7	%
Specialty Finance	58,976			48,499			10,477			22
Wealth Management	31,886			27,536			4,350			16
Total Operating Segments	370,541			338,589			31,952			9
Intersegment Eliminations	(6,181		)	(5,186		)	(995		)	(19	)
Consolidated net revenue	$	364,360		$	333,403		$	30,957		9	%
Segment profit:
Community Banking	$	53,435		$	65,355		$	(11,920	)	(18	)%
Specialty Finance	21,129			19,536			1,593			8
Wealth Management	6,902			4,689			2,213			47
Consolidated net income	$	81,466		$	89,580		$	(8,114	)	(9	)%
Segment assets:
Community Banking	$	27,005,555		$	23,979,910		$	3,025,645		13	%
Specialty Finance	5,566,067			4,824,307			741,760			15
Wealth Management	1,070,147			660,371			409,776			62
Consolidated total assets	$	33,641,769		$	29,464,588		$	4,177,181		14	%

	Six months ended						$ Change in Contribution			% Change  in Contribution
(Dollars in thousands)	June 30, 2019			June 30, 2018
Net interest income:
Community Banking	$	425,733		$	381,491		$	44,242		12	%
Specialty Finance	77,103			63,706			13,397			21
Wealth Management	14,438			8,681			5,757			66
Total Operating Segments	517,274			453,878			63,396			14
Intersegment Eliminations	10,914			9,374			1,540			16
Consolidated net interest income	$	528,188		$	463,252		$	64,936		14	%
Non-interest income:
Community Banking	$	113,637		$	122,252		$	(8,615	)	(7	)%
Specialty Finance	39,185			32,042			7,143			22
Wealth Management	49,985			46,254			3,731			8
Total Operating Segments	202,807			200,548			2,259			1
Intersegment Eliminations	(22,992		)	(19,636		)	(3,356		)	(17	)
Consolidated non-interest income	$	179,815		$	180,912		$	(1,097	)	(1	)%
Net revenue:
Community Banking	$	539,370		$	503,743		$	35,627		7	%
Specialty Finance	116,288			95,748			20,540			21
Wealth Management	64,423			54,935			9,488			17
Total Operating Segments	720,081			654,426			65,655			10
Intersegment Eliminations	(12,078		)	(10,262		)	(1,816		)	(18	)
Consolidated net revenue	$	708,003		$	644,164		$	63,839		10	%
Segment profit:
Community Banking	$	113,761		$	123,660		$	(9,899	)	(8	)%
Specialty Finance	42,977			38,511			4,466			12
Wealth Management	13,874			9,390			4,484			48
Consolidated net income	$	170,612		$	171,561		$	(949	)	(1	)%