Segment Information

6 Months Ended

Jun. 30, 2020

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 2019 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, 2020			June 30, 2019
Net interest income:
Community Banking	$	205,678		$	214,309		$	(8,631	)	(4	)%
Specialty Finance	42,415			39,397			3,018			8
Wealth Management	8,586			6,936			1,650			24
Total Operating Segments	256,679			260,642			(3,963		)	(2	)
Intersegment Eliminations	6,452			5,560			892			16
Consolidated net interest income	$	263,131		$	266,202		$	(3,071	)	(1	)%
Non-interest income:
Community Banking	$	129,698		$	65,370		$	64,328		98	%
Specialty Finance	21,831			19,579			2,252			12
Wealth Management	24,465			24,950			(485		)	(2	)
Total Operating Segments	175,994			109,899			66,095			60
Intersegment Eliminations	(14,001		)	(11,741		)	(2,260		)	(19	)
Consolidated non-interest income	$	161,993		$	98,158		$	63,835		65	%
Net revenue:
Community Banking	$	335,376		$	279,679		$	55,697		20	%
Specialty Finance	64,246			58,976			5,270			9
Wealth Management	33,051			31,886			1,165			4
Total Operating Segments	432,673			370,541			62,132			17
Intersegment Eliminations	(7,549		)	(6,181		)	(1,368		)	(22	)
Consolidated net revenue	$	425,124		$	364,360		$	60,764		17	%
Segment (loss) profit:
Community Banking	$	(7,315	)	$	53,435		$	(60,750	)	(114	)%
Specialty Finance	22,688			21,129			1,559			7
Wealth Management	6,286			6,902			(616		)	(9	)
Consolidated net income	$	21,659		$	81,466		$	(59,807	)	(73	)%
Segment assets:
Community Banking	$	35,560,107		$	27,005,555		$	8,554,552		32	%
Specialty Finance	6,708,493			5,566,067			1,142,426			21
Wealth Management	1,271,417			1,070,147			201,270			19
Consolidated total assets	$	43,540,017		$	33,641,769		$	9,898,248		29	%

	Six months ended						$ Change in Contribution			% Change  in Contribution
(Dollars in thousands)	June 30, 2020			June 30, 2019
Net interest income:
Community Banking	$	412,513		$	425,733		$	(13,220	)	(3	)%
Specialty Finance	83,127			77,103			6,024			8
Wealth Management	16,378			14,438			1,940			13
Total Operating Segments	512,018			517,274			(5,256		)	(1	)
Intersegment Eliminations	12,556			10,914			1,642			15
Consolidated net interest income	$	524,574		$	528,188		$	(3,614	)	(1	)%
Non-interest income:
Community Banking	$	210,701		$	113,637		$	97,064		85	%
Specialty Finance	43,139			39,185			3,954			10
Wealth Management	48,595			49,985			(1,390		)	(3	)
Total Operating Segments	302,435			202,807			99,628			49
Intersegment Eliminations	(27,200		)	(22,992		)	(4,208		)	18
Consolidated non-interest income	$	275,235		$	179,815		$	95,420		53	%
Net revenue:
Community Banking	$	623,214		$	539,370		$	83,844		16	%
Specialty Finance	126,266			116,288			9,978			9
Wealth Management	64,973			64,423			550			1
Total Operating Segments	814,453			720,081			94,372			13
Intersegment Eliminations	(14,644		)	(12,078		)	(2,566		)	21
Consolidated net revenue	$	799,809		$	708,003		$	91,806		13	%
Segment profit:
Community Banking	$	27,274		$	113,761		$	(86,487	)	(76	)%
Specialty Finance	44,821			42,977			1,844			4
Wealth Management	12,376			13,874			(1,498		)	(11	)
Consolidated net income	$	84,471		$	170,612		$	(86,141	)	(50	)%