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Regulatory Matters
12 Months Ended
Dec. 31, 2013
Regulatory Capital Requirements [Abstract]  
Regulatory Matters
Regulatory Matters
Banking laws place restrictions upon the amount of dividends which 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 2013, 2012 and 2011, cash dividends totaling $112.8 million, $45.0 million and $27.8 million, respectively, were paid to Wintrust by the banks. As of January 1, 2013, the banks had approximately $147.4 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 Federal Reserve Bank and are based on the average daily deposit balances and statutory reserve ratios prescribed by the type of deposit account. At December 31, 2013 and 2012, reserve balances of approximately $213.2 million and $160.2 million, respectively, were required to be maintained at the Federal Reserve Bank.
The Company and the banks are subject to various regulatory capital requirements administered by the federal banking agencies. Failure to meet minimum capital requirements can initiate certain mandatory — and possibly additional 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. The Company’s and the banks’ capital amounts and classification are also subject to qualitative judgments by the regulators about components, risk weightings, and other factors.
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 4.0% must be in the form of Tier 1 Capital. The Federal Reserve also requires a minimum tangible Tier 1 leverage ratio (Tier 1 Capital to total assets) of 3.0% for strong bank holding companies (those rated a composite “1” under the Federal Reserve’s rating system). For all other banking holding companies, the minimum tangible Tier 1 leverage ratio is 4.0%. In addition, the Federal Reserve continues to consider the tangible 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, 2013 and 2012:
 
 
2013
 
2012
Total Capital to Risk Weighted Assets
 
12.9
%
 
13.1
%
Tier 1 Capital to Risk Weighted Assets
 
12.2
%
 
12.1
%
Tier 1 Leverage Ratio
 
10.5
%
 
10.0
%

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, 2013, 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%, 6.0%, and 5.0% for Total Capital to Risk-Weighted Assets, Tier 1 Capital to Risk-Weighted Assets and Tier 1 Leverage Ratio, respectively.


The banks’ actual capital amounts and ratios as of December 31, 2013 and 2012 are presented in the following table:
(Dollars in thousands)
 
December 31, 2013
 
December 31, 2012
 
 
Actual
 
To Be Well
Capitalized by
Regulatory Definition
 
Actual
 
To Be Well
Capitalized by
Regulatory Definition
 
 
Amount
 
Ratio
 
Amount
 
Ratio
 
Amount
 
Ratio
 
Amount
 
Ratio
Total Capital (to Risk Weighted Assets):
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Lake Forest Bank
 
$
236,055

 
11.7
%
 
$
202,443

 
10.0
%
 
$
226,234

 
11.0
%
 
$
205,188

 
10.0
%
Hinsdale Bank
 
152,266

 
11.4

 
134,106

 
10.0

 
154,677

 
12.2

 
126,837

 
10.0

North Shore Community Bank
 
232,454

 
11.6

 
200,806

 
10.0

 
202,823

 
11.5

 
176,124

 
10.0

Libertyville Bank
 
111,396

 
11.4

 
97,777

 
10.0

 
116,818

 
11.9

 
97,880

 
10.0

Barrington Bank
 
128,924

 
11.0

 
117,103

 
10.0

 
148,382

 
13.5

 
109,526

 
10.0

Crystal Lake Bank
 
85,922

 
13.0

 
66,066

 
10.0

 
84,310

 
14.5

 
58,091

 
10.0

Northbrook Bank
 
142,512

 
11.0

 
130,208

 
10.0

 
139,603

 
12.2

 
114,057

 
10.0

Schaumburg Bank
 
70,728

 
11.4

 
62,130

 
10.0

 
68,305

 
11.8

 
57,946

 
10.0

Village Bank
 
95,359

 
11.0

 
86,435

 
10.0

 
92,787

 
11.5

 
80,441

 
10.0

Beverly Bank
 
70,754

 
11.2

 
63,251

 
10.0

 
61,994

 
11.1

 
55,697

 
10.0

Town Bank
 
85,647

 
11.2

 
76,234

 
10.0

 
83,144

 
11.5

 
72,373

 
10.0

Wheaton Bank
 
77,177

 
13.0

 
59,354

 
10.0

 
71,097

 
13.6

 
52,450

 
10.0

State Bank of the Lakes
 
73,248

 
11.9

 
61,698

 
10.0

 
71,178

 
11.5

 
61,886

 
10.0

Old Plank Trail Bank
 
96,495

 
12.7

 
75,834

 
10.0

 
74,445

 
14.7

 
50,582

 
10.0

St. Charles Bank
 
71,170

 
11.4

 
62,669

 
10.0

 
66,079

 
11.3

 
58,341

 
10.0

Tier 1 Capital (to Risk Weighted Assets):
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Lake Forest Bank
 
$
222,577

 
11.0
%
 
$
121,466

 
6.0
%
 
$
209,699

 
10.2
%
 
$
123,113

 
6.0
%
Hinsdale Bank
 
144,196

 
10.8

 
80,463

 
6.0

 
145,380

 
11.5

 
76,102

 
6.0

North Shore Community Bank
 
162,903

 
8.1

 
120,484

 
6.0

 
145,488

 
8.3

 
105,675

 
6.0

Libertyville Bank
 
103,895

 
10.6

 
58,666

 
6.0

 
105,251

 
10.8

 
58,728

 
6.0

Barrington Bank
 
122,664

 
10.5

 
70,262

 
6.0

 
140,037

 
12.8

 
65,716

 
6.0

Crystal Lake Bank
 
79,878

 
12.1

 
39,640

 
6.0

 
77,962

 
13.4

 
34,855

 
6.0

Northbrook Bank
 
131,591

 
10.1

 
78,125

 
6.0

 
125,192

 
11.0

 
68,434

 
6.0

Schaumburg Bank
 
64,263

 
10.3

 
37,278

 
6.0

 
62,538

 
10.8

 
34,768

 
6.0

Village Bank
 
88,961

 
10.3

 
51,861

 
6.0

 
86,435

 
10.7

 
48,265

 
6.0

Beverly Bank
 
65,385

 
10.3

 
37,951

 
6.0

 
59,440

 
10.7

 
33,418

 
6.0

Town Bank
 
79,843

 
10.5

 
45,741

 
6.0

 
76,824

 
10.6

 
43,424

 
6.0

Wheaton Bank
 
69,730

 
11.8

 
35,613

 
6.0

 
64,509

 
12.3

 
31,470

 
6.0

State Bank of the Lakes
 
68,399

 
11.1

 
37,019

 
6.0

 
61,521

 
9.9

 
37,131

 
6.0

Old Plank Trail Bank
 
92,694

 
12.2

 
45,500

 
6.0

 
66,170

 
13.1

 
30,349

 
6.0

St. Charles Bank
 
64,922

 
10.4

 
37,601

 
6.0

 
60,753

 
10.4

 
35,004

 
6.0

Tier 1 Leverage Ratio:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Lake Forest Bank
 
$
222,577

 
9.6
%
 
$
116,340

 
5.0
%
 
$
209,699

 
8.8
%
 
$
119,601

 
5.0
%
Hinsdale Bank
 
144,196

 
9.5

 
75,822

 
5.0

 
145,380

 
8.7

 
83,238

 
5.0

North Shore Community Bank
 
162,903

 
7.2

 
113,580

 
5.0

 
145,488

 
7.2

 
101,553

 
5.0

Libertyville Bank
 
103,895

 
9.2

 
56,703

 
5.0

 
105,251

 
8.9

 
59,379

 
5.0

Barrington Bank
 
122,664

 
8.9

 
69,270

 
5.0

 
140,037

 
9.7

 
72,531

 
5.0

Crystal Lake Bank
 
79,878

 
10.2

 
39,108

 
5.0

 
77,962

 
10.3

 
37,971

 
5.0

Northbrook Bank
 
131,591

 
8.1

 
80,876

 
5.0

 
125,192

 
7.5

 
83,244

 
5.0

Schaumburg Bank
 
64,263

 
9.0

 
35,571

 
5.0

 
62,538

 
8.7

 
36,061

 
5.0

Village Bank
 
88,961

 
9.4

 
47,549

 
5.0

 
86,435

 
9.0

 
48,068

 
5.0

Beverly Bank
 
65,385

 
8.8

 
37,281

 
5.0

 
59,440

 
12.3

 
24,127

 
5.0

Town Bank
 
79,843

 
9.5

 
42,164

 
5.0

 
76,824

 
9.4

 
40,671

 
5.0

Wheaton Bank
 
69,730

 
9.3

 
37,498

 
5.0

 
64,509

 
8.9

 
36,205

 
5.0

State Bank of the Lakes
 
68,399

 
9.8

 
34,784

 
5.0

 
61,521

 
8.4

 
36,570

 
5.0

Old Plank Trail Bank
 
92,694

 
8.7

 
53,603

 
5.0

 
66,170

 
8.9

 
37,380

 
5.0

St. Charles Bank
 
64,922

 
9.6

 
33,975

 
5.0

 
60,753

 
9.4

 
32,170

 
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, 2013, these business units met their minimum net worth capital requirements.