Segment Information

9 Months Ended

Sep. 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)	September 30, 2020			September 30, 2019
Net interest income:
Community Banking	$	196,803		$	209,912		$	(13,109	)	(6	)%
Specialty Finance	46,454			42,138			4,316			10
Wealth Management	6,894			7,290			(396		)	(5	)
Total Operating Segments	250,151			259,340			(9,189		)	(4	)
Intersegment Eliminations	5,785			5,512			273			5
Consolidated net interest income	$	255,936		$	264,852		$	(8,916	)	(3	)%
Non-interest income:
Community Banking	$	136,996		$	82,870		$	54,126		65	%
Specialty Finance	21,409			20,003			1,406			7
Wealth Management	26,152			24,422			1,730			7
Total Operating Segments	184,557			127,295			57,262			45
Intersegment Eliminations	(13,964		)	(12,158		)	(1,806		)	15
Consolidated non-interest income	$	170,593		$	115,137		$	55,456		48	%
Net revenue:
Community Banking	$	333,799		$	292,782		$	41,017		14	%
Specialty Finance	67,863			62,141			5,722			9
Wealth Management	33,046			31,712			1,334			4
Total Operating Segments	434,708			386,635			48,073			12
Intersegment Eliminations	(8,179		)	(6,646		)	(1,533		)	23
Consolidated net revenue	$	426,529		$	379,989		$	46,540		12	%
Segment profit:
Community Banking	$	70,584		$	68,792		$	1,792		3	%
Specialty Finance	29,859			24,241			5,618			23
Wealth Management	6,872			6,088			784			13
Consolidated net income	$	107,315		$	99,121		$	8,194		8	%
Segment assets:
Community Banking	$	35,729,021		$	28,092,785		$	7,636,236		27	%
Specialty Finance	6,732,765			5,739,798			992,967			17
Wealth Management	1,269,932			1,079,319			190,613			18
Consolidated total assets	$	43,731,718		$	34,911,902		$	8,819,816		25	%

	Nine months ended						$ Change in Contribution			% Change  in Contribution
(Dollars in thousands)	September 30, 2020			September 30, 2019
Net interest income:
Community Banking	$	609,316		$	635,645		$	(26,329	)	(4	)%
Specialty Finance	129,581			119,241			10,340			9
Wealth Management	23,272			21,728			1,544			7
Total Operating Segments	762,169			776,614			(14,445		)	(2	)
Intersegment Eliminations	18,341			16,426			1,915			12
Consolidated net interest income	$	780,510		$	793,040		$	(12,530	)	(2	)%
Non-interest income:
Community Banking	$	347,697		$	196,507		$	151,190		77	%
Specialty Finance	64,548			59,188			5,360			9
Wealth Management	74,747			74,407			340			—
Total Operating Segments	486,992			330,102			156,890			48
Intersegment Eliminations	(41,164		)	(35,150		)	(6,014		)	17
Consolidated non-interest income	$	445,828		$	294,952		$	150,876		51	%
Net revenue:
Community Banking	$	957,013		$	832,152		$	124,861		15	%
Specialty Finance	194,129			178,429			15,700			9
Wealth Management	98,019			96,135			1,884			2
Total Operating Segments	1,249,161			1,106,716			142,445			13
Intersegment Eliminations	(22,823		)	(18,724		)	(4,099		)	22
Consolidated net revenue	$	1,226,338		$	1,087,992		$	138,346		13	%
Segment profit:
Community Banking	$	97,858		$	182,553		$	(84,695	)	(46	)%
Specialty Finance	74,680			67,218			7,462			11
Wealth Management	19,248			19,962			(714		)	(4	)
Consolidated net income	$	191,786		$	269,733		$	(77,947	)	(29	)%