Regulatory Matters

12 Months Ended

Dec. 31, 2021

Broker-Dealer, Net Capital Requirement, SEC Regulation [Abstract]

Regulatory Matters

Regulatory MattersBanking laws place restrictions upon the amount of dividends that can be paid to Wintrust by the banks. Based on these laws, the banks could, subject to minimum capital requirements, declare dividends to Wintrust without obtaining regulatory approval in an amount not exceeding (a) undivided profits, and (b) the amount of net income reduced by dividends paid for the current and prior two years. During 2021, 2020 and 2019, cash dividends totaling $145.0 million, $253.0 million and $139.0 million, respectively, were paid to Wintrust by the banks and other subsidiaries. As of December 31, 2021, the banks had approximately $431.9 million available to be paid as dividends to Wintrust without prior regulatory approval and without reducing their capital below the well-capitalized level.

The banks are also required by the Federal Reserve Act to maintain reserves against deposits. Reserves are held either in the form of vault cash or balances maintained with the FRB and are based on the average daily deposit balances and statutory reserve ratios prescribed by the type of deposit account. In March 2020, the FRB adopted a rule to amend its reserve regulation which included lowering the reserve requirement to zero percent. As a result, at December 31, 2021 and 2020, there was no reserve balance required to be maintained at the FRB.

The Company and the banks are subject to various regulatory capital requirements established by the federal banking agencies that take into account risk attributable to balance sheet and off-balance sheet activities. Failure to meet minimum capital requirements can initiate certain mandatory — and possibly discretionary — actions by regulators, that if undertaken could have a direct material effect on the Company’s financial statements. Under capital adequacy guidelines and the regulatory framework for prompt corrective action, the Company and the banks must meet specific capital guidelines that involve quantitative measures of the Company’s assets, liabilities, and certain off-balance sheet items as calculated under regulatory accounting practices.

Quantitative measures established by regulation to ensure capital adequacy require the Company and the banks to maintain minimum amounts and ratios of total and Tier 1 capital (as defined in the regulations) to risk-weighted assets (as defined) and Tier 1 leverage capital (as defined) to average quarterly assets (as defined). The Federal Reserve’s capital guidelines require bank holding companies to maintain a minimum ratio of qualifying total capital to risk-weighted assets of 8.0%, of which at least 4.50% must be in the form of Common Equity Tier 1 capital and 6.0% must be in the form of Tier 1 capital. The Federal Reserve also requires a minimum leverage ratio of Tier 1 capital to average total assets of 4.0%. In addition, the Federal Reserve continues to consider the Tier 1 leverage ratio in evaluating proposals for expansion or new activities.

As reflected in the following table, the Company met all minimum capital requirements at December 31, 2021 and 2020:

	2021		2020
Total capital to risk weighted assets	11.6	%	12.6	%
Tier 1 capital to risk weighted assets	9.6		10.0
Common Equity Tier 1 capital to risk weighted assets	8.6		8.8
Tier 1 Leverage Ratio	8.0		8.1

Wintrust is designated as a financial holding company. Bank holding companies approved as financial holding companies may engage in an expanded range of activities, including the businesses conducted by its wealth management subsidiaries. As a financial holding company, Wintrust’s banks are required to maintain their capital positions at the “well-capitalized” level. As of December 31, 2021, the banks were categorized as well capitalized under the regulatory framework for prompt corrective action. The ratios required for the banks to be “well capitalized” by regulatory definition are 10.0%, 8.0%, 6.5% and 5.0% for total capital to risk-weighted assets, Tier 1 capital to risk-weighted assets, Common Equity Tier 1 capital to risk weighted assets and Tier 1 leverage ratio, respectively.

The banks’ actual capital amounts and ratios as of December 31, 2021 and 2020 are presented in the following table:

	December 31, 2021								December 31, 2020
	Actual				To Be Well Capitalized by Regulatory Definition				Actual				To Be Well Capitalized by Regulatory Definition
(Dollars in thousands)	Amount		Ratio		Amount		Ratio		Amount		Ratio		Amount		Ratio
Total Capital (to Risk Weighted Assets):
Lake Forest Bank	$	614,942	11.1	%	$	552,325	10.0	%	$	525,202	12.0	%	$	436,884	10.0	%
Hinsdale Bank	370,363		11.3		327,716		10.0		347,559		12.7		274,208		10.0
Wintrust Bank	905,629		11.2		810,711		10.0		808,451		11.6		697,039		10.0
Libertyville Bank	203,893		11.4		179,719		10.0		184,387		11.4		161,448		10.0
Barrington Bank	362,019		11.6		313,373		10.0		372,944		11.8		316,946		10.0
Crystal Lake Bank	139,059		11.4		121,722		10.0		127,621		11.4		111,594		10.0
Northbrook Bank	338,912		11.2		303,915		10.0		300,427		11.7		257,849		10.0
Schaumburg Bank	148,108		11.0		134,208		10.0		128,475		11.3		113,610		10.0
Village Bank	219,017		11.0		198,923		10.0		192,387		11.9		161,866		10.0
Beverly Bank	189,349		11.4		166,645		10.0		184,270		12.1		152,521		10.0
Town Bank	273,185		11.3		241,598		10.0		252,271		11.8		213,661		10.0
Wheaton Bank	245,045		11.4		215,507		10.0		213,784		11.4		186,919		10.0
State Bank of the Lakes	145,438		11.3		129,304		10.0		131,068		11.6		113,363		10.0
Old Plank Trail Bank	190,402		11.5		165,493		10.0		177,047		12.0		147,607		10.0
St. Charles Bank	183,726		11.4		161,563		10.0		165,876		12.0		138,774		10.0
Tier 1 Capital (to Risk Weighted Assets):
Lake Forest Bank	$	586,701	10.6	%	$	441,860	8.0	%	$	494,957	11.3	%	$	349,507	8.0	%
Hinsdale Bank	352,916		10.8		262,173		8.0		323,207		11.8		219,366		8.0
Wintrust Bank	844,613		10.4		648,569		8.0		728,787		10.5		557,631		8.0
Libertyville Bank	191,716		10.7		143,775		8.0		169,328		10.5		129,158		8.0
Barrington Bank	353,629		11.3		250,698		8.0		362,326		11.4		253,556		8.0
Crystal Lake Bank	131,730		10.8		97,378		8.0		118,085		10.6		89,275		8.0
Northbrook Bank	320,243		10.5		243,132		8.0		280,852		10.9		206,279		8.0
Schaumburg Bank	141,228		10.5		107,367		8.0		119,335		10.5		90,888		8.0
Village Bank	206,828		10.4		159,138		8.0		176,868		10.9		129,493		8.0
Beverly Bank	179,487		10.8		133,316		8.0		173,168		11.4		122,017		8.0
Town Bank	262,859		10.9		193,278		8.0		236,926		11.1		170,929		8.0
Wheaton Bank	234,218		10.9		172,405		8.0		199,134		10.7		149,535		8.0
State Bank of the Lakes	138,266		10.7		103,443		8.0		122,183		10.8		90,690		8.0
Old Plank Trail Bank	177,956		10.8		132,394		8.0		155,975		10.9		118,085		8.0
St. Charles Bank	174,516		10.8		129,250		8.0		153,704		11.1		111,019		8.0
Common Equity Tier 1 Capital (to Risk Weighted Assets):
Lake Forest Bank	$	586,701	10.6	%	$	359,011	6.5	%	$	494,957	11.3	%	$	283,975	6.5	%
Hinsdale Bank	352,916		10.8		213,015		6.5		323,207		11.8		178,235		6.5
Wintrust Bank	844,613		10.4		526,962		6.5		728,787		10.5		453,075		6.5
Libertyville Bank	191,716		10.7		116,817		6.5		169,328		10.5		104,941		6.5
Barrington Bank	353,629		11.3		203,692		6.5		362,326		11.4		206,015		6.5
Crystal Lake Bank	131,730		10.8		79,119		6.5		118,085		10.6		72,536		6.5
Northbrook Bank	320,243		10.5		197,545		6.5		280,852		10.9		167,602		6.5
Schaumburg Bank	141,228		10.5		87,235		6.5		119,335		10.5		73,846		6.5
Village Bank	206,828		10.4		129,300		6.5		176,868		10.9		105,213		6.5
Beverly Bank	179,487		10.8		108,319		6.5		173,168		11.4		99,139		6.5
Town Bank	262,859		10.9		157,039		6.5		236,926		11.1		138,880		6.5
Wheaton Bank	234,218		10.9		140,079		6.5		199,134		10.7		121,497		6.5
State Bank of the Lakes	138,266		10.7		84,048		6.5		122,183		10.8		73,686		6.5
Old Plank Trail Bank	177,956		10.8		107,571		6.5		155,975		10.9		95,944		6.5
St. Charles Bank	174,516		10.8		105,016		6.5		153,704		11.1		90,203		6.5

	December 31, 2021								December 31, 2020
	Actual				To Be Well Capitalized by Regulatory Definition				Actual				To Be Well Capitalized by Regulatory Definition
(Dollars in thousands)	Amount		Ratio		Amount		Ratio		Amount		Ratio		Amount		Ratio
Tier 1 Leverage Ratio:
Lake Forest Bank	$	586,701	8.3	%	$	353,846	5.0	%	$	494,957	8.8	%	$	281,365	5.0	%
Hinsdale Bank	352,916		8.8		200,228		5.0		323,207		8.5		190,608		5.0
Wintrust Bank	844,613		9.2		461,082		5.0		728,787		8.8		412,878		5.0
Libertyville Bank	191,716		8.5		112,448		5.0		169,328		8.5		99,846		5.0
Barrington Bank	353,629		10.9		162,392		5.0		362,326		11.5		158,153		5.0
Crystal Lake Bank	131,730		9.7		67,711		5.0		118,085		9.0		65,329		5.0
Northbrook Bank	320,243		8.5		188,424		5.0		280,852		8.5		164,599		5.0
Schaumburg Bank	141,228		9.0		78,938		5.0		119,335		8.4		70,740		5.0
Village Bank	206,828		9.2		111,885		5.0		176,868		8.3		106,021		5.0
Beverly Bank	179,487		9.9		90,265		5.0		173,168		10.1		86,022		5.0
Town Bank	262,859		7.9		166,487		5.0		236,926		8.1		145,977		5.0
Wheaton Bank	234,218		8.1		144,949		5.0		199,134		7.7		128,592		5.0
State Bank of the Lakes	138,266		8.5		81,475		5.0		122,183		8.2		74,986		5.0
Old Plank Trail Bank	177,956		8.2		108,332		5.0		155,975		8.2		98,610		5.0
St. Charles Bank	174,516		9.1		95,638		5.0		153,704		8.8		87,849		5.0

Wintrust’s mortgage banking division and broker/dealer subsidiary are also required to maintain minimum net worth capital requirements with various governmental agencies. The mortgage banking division’s net worth requirements are governed by the Department of Housing and Urban Development and the broker/dealer’s net worth requirements are governed by the SEC. As of December 31, 2021, these business units met their minimum net worth capital requirements.