Segment Information

3 Months Ended

Mar. 31, 2025

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 sixteen 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” in Item 1 of this report 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 table 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 Note (1) “Summary of Significant Accounting Policies” of the 2024 Form 10-K.

Our Chief Executive Officer is our chief operating decision maker (“CODM”). The CODM uses income before taxes to review segment performance and allocate resources for each reportable segment. Financial information regarding each significant segment expense outlined below is regularly provided (at least monthly) to the CODM. For community banking and specialty finance segments, ‘Interest expense’ is a significant segment expense. Additionally, for each of the three reportable segments, ‘Salaries’, ‘Commissions and incentive compensation’ and ‘Benefits’ are significant segment expenses.

The following is a summary of certain operating information for reportable segments:

(In thousands)	Community Banking		Specialty Finance		Wealth Management		Total Operating Segments		Intersegment Eliminations		Consolidated
Three Months Ended March 31, 2025:
Interest income	$	768,968	$	101,698	$	5,531	$	876,197	$	10,768	$	886,965
Interest expense	349,957		10,391		143		360,491		—		360,491
Net interest income	419,011		91,307		5,388		515,706		10,768		526,474
Provision for credit losses	22,428		1,535		—		23,963		—		23,963
Non-interest income	73,493		31,039		33,790		138,322		(21,688)		116,634
Non-interest expense:
Salaries	98,586		15,762		9,104		123,452		465		123,917
Commissions and incentive compensation	32,137		9,041		11,358		52,536		—		52,536
Benefits	27,374		4,718		2,981		35,073		—		35,073
Other segment expenses(1)	132,490		23,445		10,014		165,949		(11,385)		154,564
Total non-interest expense	290,587		52,966		33,457		377,010		(10,920)		366,090
Income before taxes	179,489		67,845		5,721		253,055		—		253,055
Income tax expense	45,219		17,552		1,245		64,016		—		64,016
Net income	$	134,270	$	50,293	$	4,476	$	189,039	$	—	$	189,039
Total assets at period end	$	53,531,046	$	11,312,205	$	1,026,815	$	65,870,066	$	—	$	65,870,066
Three Months Ended March 31, 2024:
Interest income	$	691,897	$	95,144	$	8,003	$	795,044	$	10,469	$	805,513
Interest expense	328,212		12,862		245		341,319		—		341,319
Net interest income	363,685		82,282		7,758		453,725		10,469		464,194
Provision for credit losses	20,392		1,281		—		21,673		—		21,673
Non-interest income	74,636		27,317		58,485		160,438		(19,858)		140,580
Non-interest expense:
Salaries	86,682		14,538		10,442		111,662		510		112,172
Commissions and incentive compensation	29,781		8,639		12,581		51,001		—		51,001
Benefits	24,676		4,314		3,010		32,000		—		32,000
Other segment expenses(1)	116,601		22,781		8,489		147,871		(9,899)		137,972
Total non-interest expense	257,740		50,272		34,522		342,534		(9,389)		333,145
Income before taxes	160,189		58,046		31,721		249,956		—		249,956
Income tax expense	40,143		15,523		6,996		62,662		—		62,662
Net income	$	120,046	$	42,523	$	24,725	$	187,294	$	—	$	187,294
Total assets at period end	$	45,720,014	$	10,713,783	$	1,143,136	$	57,576,933	$	—	$	57,576,933

(1)Other segment items include non-interest expense categories such as ‘Software & Equipment’, ‘Data processing’, ‘Advertising and Marketing’, ‘FDIC Insurance’, and ‘Occupancy’. See “Non-Interest Expense” under Management’s Discussion and Analysis of Financial Condition and Results of Operations in Item 2 of this Form 10-Q for further discussion on non-interest expense.