Shareholders’ Equity

A summary of the Company’s common and preferred stock at December 31, 2018 and 2017 is as follows:



	2018		2017
Common Stock:
Shares authorized	100,000,000		100,000,000
Shares issued	56,518,119		56,068,220
Shares outstanding	56,407,558		55,965,207
Cash dividend per share	$	0.76	$	0.56
Preferred Stock:
Shares authorized	20,000,000		20,000,000
Shares issued	5,000,000		5,000,000
Shares outstanding	5,000,000		5,000,000

The Company reserves shares of its authorized common stock specifically for the 2015 Plan, the ESPP and the DDFS. The reserved shares and these plans are detailed in Note 18 - Stock Compensation Plans and Other Employee Benefit Plans. The Company also reserves its authorized common stock for conversion of common stock warrants.

Common Stock Offering

In June 2016, the Company issued through a public offering a total of 3,000,000 shares of its common stock. Net proceeds to the Company totaled approximately $152.9 million.

Series C Preferred Stock

In March 2012, the Company issued and sold 126,500 shares of Series C Preferred Stock for $126.5 million in a public offering. When, as and if declared, dividends on the Series C Preferred Stock were payable quarterly in arrears at a rate of 5.00% per annum. The Series C Preferred Stock was convertible into common stock at the option of the holder subject to customary anti-dilution adjustments. In 2016, pursuant to such terms, 30 shares of the Series C Preferred Stock were converted at the option of the respective holders into 729 shares of the Company's common stock. On April 25, 2017, 2,073 shares of the Series C Preferred Stock were converted at the option of the respective holder into 51,244 shares of the Company's common stock, pursuant to the terms of the Series C Preferred Stock. On April 27, 2017, the Company caused a mandatory conversion of its remaining 124,184 shares of Series C Preferred Stock into 3,069,828 shares of the Company's common stock at a conversion rate of 24.72 shares of common stock per share of Series C Preferred Stock. Cash was paid in lieu of fractional shares for an amount considered insignificant.

Series D Preferred Stock

In June 2015, the Company issued and sold 5,000,000 shares of Series D Preferred Stock for $125.0 million in a public offering. When, as and if declared, dividends on the Series D Preferred Stock are payable quarterly in arrears at a fixed rate of 6.50% per annum from the original issuance date to, but excluding, July 15, 2025, and from (and including) that date at a floating rate equal to three-month LIBOR plus a spread of 4.06% per annum.

Common Stock Warrants

Pursuant to the U.S. Department of the Treasury’s (the “U.S. Treasury”) Capital Purchase Program, on December 19, 2008, the Company issued to the U.S. Treasury a warrant to exercise 1,643,295 warrant shares of Wintrust common stock with a term of 10 years. In February 2011, the U.S. Treasury sold all of its interest in the warrant issued to it in a secondary underwritten public offering. During 2017, certain holders of the interest in the warrant exercised 318,491 warrant shares, which resulted in 219,372 shares of common stock issued. During 2018, certain holders of the interest in the warrant exercised 22,952 warrant shares, which resulted in 16,571 shares of common stock issued. On December 19, 2018, the Company’s warrant shares expired. Any warrant shares not exercised prior to this date expired and became void, and the holder did not receive any shares of the Company’s common stock.

Other

At the January 2019 Board of Directors meeting, a quarterly cash dividend of $0.25 per share ($1.00 on an annualized basis) was

declared. It was paid on February 21, 2019 to shareholders of record as of February 7, 2019.

The following tables summarize the components of other comprehensive income (loss), including the related income tax effects, for the years ended December 31, 2018, 2017 and 2016:



(In thousands)	Accumulated Unrealized Losses on Securities			Accumulated Unrealized Gains (Losses) on Derivative Instruments			Accumulated Foreign Currency Translation Adjustments			Total Accumulated Other Comprehensive Loss
Balance at January 1, 2018	$	(15,813	)	$	7,164		$	(33,186	)	$	(41,835	)
Cumulative effect adjustment from the adoption of:
ASU 2016-01	(1,880		)	—			—			(1,880		)
ASU 2018-02	(4,517		)	1,543			—			(2,974		)
Other comprehensive (loss) income during the period, net of tax, before reclassification	(20,054		)	4,498			(9,190		)	(24,746		)
Amount reclassified from accumulated other comprehensive income into net income, net of tax	(24		)	(5,348		)	—			(5,372		)
Amount reclassified from accumulated other comprehensive income related to amortization of unrealized gains on investment securities transferred to held-to-maturity from available-for-sale	(65		)	—			—			(65		)
Net other comprehensive loss during the period, net of tax	$	(20,143	)	$	(850	)	$	(9,190	)	$	(30,183	)
Balance at December 31, 2018	$	(42,353	)	$	7,857		$	(42,376	)	$	(76,872	)

Balance at January 1, 2017	$	(29,309	)	$	4,165		$	(40,184	)	$	(65,328	)
Other comprehensive income during the period, net of tax, before reclassification	14,417			3,010			6,998			24,425
Amount reclassified from accumulated other comprehensive income into net income, net of tax	(27		)	(11		)	—			(38		)
Amount reclassified from accumulated other comprehensive income related to amortization of unrealized gains on investment securities transferred to held-to-maturity from available-for-sale	(894		)	—			—			(894		)
Net other comprehensive income during the period, net of tax	$	13,496		$	2,999		$	6,998		$	23,493
Balance at December 31, 2017	$	(15,813	)	$	7,164		$	(33,186	)	$	(41,835	)

Balance at January 1, 2016	$	(17,674	)	$	(2,193	)	$	(42,841	)	$	(62,708	)
Other comprehensive (loss) income during the period, net of tax, before reclassification	(17,554		)	4,464			2,657			(10,433		)
Amount reclassified from accumulated other comprehensive income (loss) into net income, net of tax	(4,641		)	1,894			—			(2,747		)
Amount reclassified from accumulated other comprehensive income related to amortization of unrealized losses on investment securities transferred to held-to-maturity from available-for-sale	10,560			—			—			10,560
Net other comprehensive (loss) income during the period, net of tax	$	(11,635	)	$	6,358		$	2,657		$	(2,620	)
Balance at December 31, 2016	$	(29,309	)	$	4,165		$	(40,184	)	$	(65,328	)



	Amount Reclassified from Accumulated Other Comprehensive Income for the Year Ended,

Details Regarding the Component of Accumulated Other Comprehensive Income	December 31,						Impacted Line on the Consolidated Statements of Income
	2018			2017			Impacted Line on the Consolidated Statements of Income
Accumulated unrealized losses on available-for-sale securities
Gains included in net income	$	33		$	45		Gains on investment securities, net
	33			45			Income before taxes
Tax effect	(9		)	(18		)	Income tax expense
Net of tax	$	24		$	27		Net income

Accumulated unrealized losses on derivative instruments
Amount reclassified to interest expense on deposits	$	(7,549	)	$	(1,085	)	Interest on deposits
Amount reclassified to interest expense on other borrowings	236			—			Interest on other borrowings
Amount reclassified to interest expense on junior subordinated debentures	—			1,066			Interest on junior subordinated debentures
	7,313			19			Income before taxes
Tax effect	(1,965		)	(8		)	Income tax expense
Net of tax	$	5,348		$	11		Net income