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Shareholders' Equity and Earnings Per Share
 6 Months Ended
Jun. 30, 2019
Earnings Per Share, Basic and Diluted, Other Disclosures [Abstract]  
Shareholders' Equity and Earnings Per Share Shareholders’ Equity and Earnings Per Share

Series D Preferred Stock

In June 2015, the Company issued and sold 5,000,000 shares of fixed-to-floating non-cumulative perpetual preferred stock, Series D, liquidation preference $25 per share (the “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 Warrant

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 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. At the April 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 May 23, 2019 to shareholders of record as of May 9, 2019.

Accumulated Other Comprehensive Income (Loss)

The following tables summarize the components of other comprehensive income (loss), including the related income tax effects, and the related amount reclassified to net income for the periods presented (in thousands).
 
Accumulated
Unrealized
Losses
on Securities
 
Accumulated
Unrealized
Gains on
Derivative
Instruments
 
Accumulated
Foreign
Currency
Translation
Adjustments
 
Total
Accumulated
Other
Comprehensive
Loss
Balance at April 1, 2019
$
(14,451
)
 
$
4,206

 
$
(40,099
)
 
$
(50,344
)
Other comprehensive income (loss) during the period, net of tax, before reclassifications
19,200

 
(13,257
)
 
2,505

 
8,448

Amount reclassified from accumulated other comprehensive loss into net income, net of tax
(383
)
 
(2,993
)
 
—

 
(3,376
)
Amount reclassified from accumulated other comprehensive loss related to amortization of unrealized losses on investment securities transferred to held-to-maturity from available-for-sale, net of tax
(157
)
 
—

 
—

 
(157
)
Net other comprehensive income (loss) during the period, net of tax
$
18,660

 
$
(16,250
)
 
$
2,505

 
$
4,915

Balance at June 30, 2019
$
4,209

 
$
(12,044
)
 
$
(37,594
)
 
$
(45,429
)
 
 
 
 
 
 
 
 
Balance at January 1, 2019
$
(42,353
)
 
$
7,857

 
$
(42,376
)
 
$
(76,872
)
Other comprehensive (loss) income during the period, net of tax, before reclassifications
47,156

 
(14,296
)
 
4,782

 
37,642

Amount reclassified from accumulated other comprehensive loss into net income, net of tax
(334
)
 
(5,605
)
 
—

 
(5,939
)
Amount reclassified from accumulated other comprehensive loss related to amortization of unrealized losses on investment securities transferred to held-to-maturity from available-for-sale, net of tax
(260
)
 
—

 
—

 
(260
)
Net other comprehensive income (loss) during the period, net of tax
$
46,562

 
$
(19,901
)
 
$
4,782

 
$
31,443

Balance at June 30, 2019
$
4,209

 
$
(12,044
)
 
$
(37,594
)
 
$
(45,429
)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Accumulated
Unrealized
Losses
on Securities
 
Accumulated
Unrealized
Gains on
Derivative
Instruments
 
Accumulated
Foreign
Currency
Translation
Adjustments
 
Total
Accumulated
Other
Comprehensive
Loss
Balance at April 1, 2018
$
(47,968
)
 
$
10,956

 
$
(36,083
)
 
$
(73,095
)
Other comprehensive (loss) income during the period, net of tax, before reclassifications
(6,914
)
 
1,771

 
(1,996
)
 
(7,139
)
Amount reclassified from accumulated other comprehensive loss into net income, net of tax
12

 
(979
)
 
—

 
(967
)
Amount reclassified from accumulated other comprehensive loss related to amortization of unrealized losses on investment securities transferred to held-to-maturity from available-for-sale, net of tax
(15
)
 
—

 
—

 
(15
)
Net other comprehensive (loss) income during the period, net of tax
$
(6,917
)
 
$
792

 
$
(1,996
)
 
$
(8,121
)
Balance at June 30, 2018
$
(54,885
)
 
$
11,748

 
$
(38,079
)
 
$
(81,216
)
 
 
 
 
 
 
 
 

 
 
 
 
 
 
 
 
 
Accumulated
Unrealized
Gains (Losses)
on Securities
 
Accumulated
Unrealized
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 reclassifications
(33,388
)
 
4,517

 
(4,893
)
 
(33,764
)
Amount reclassified from accumulated other comprehensive loss into net income, net of tax
725

 
(1,476
)
 
—

 
(751
)
Amount reclassified from accumulated other comprehensive loss related to amortization of unrealized losses on investment securities transferred to held-to-maturity from available-for-sale, net of tax
(12
)
 
—

 
—

 
(12
)
Net other comprehensive (loss) income during the period, net of tax
$
(32,675
)
 
$
3,041

 
$
(4,893
)
 
$
(34,527
)
Balance at June 30, 2018
$
(54,885
)
 
$
11,748

 
$
(38,079
)
 
$
(81,216
)


 
 
Amount Reclassified from Accumulated Other Comprehensive Income for the
 
 
Details Regarding the Component of Accumulated Other Comprehensive Income
 
Three Months Ended
 
Six Months Ended
 
Impacted Line on the
Consolidated Statements of Income
 
June 30,
 
June 30,
 
 
2019
 
2018
 
2019
 
2018
 
Accumulated unrealized losses on securities
 
 
 
 
 
 
 
 
 
 
Gains (losses) included in net income
 
$
523

 
$
(20
)
 
$
456

 
$
(995
)
 
Gains (losses) on investment securities, net
 
 
523

 
(20
)
 
456

 
(995
)
 
Income before taxes
Tax effect
 
$
(140
)
 
$
8

 
$
(122
)
 
$
270

 
Income tax expense
Net of tax
 
$
383

 
$
(12
)
 
$
334

 
$
(725
)
 
Net income
 
 
 
 
 
 
 
 
 
 
 
Accumulated unrealized losses on derivative instruments
 
 
 
 
 
 
 
 
 
 
Amount reclassified to interest expense on deposits
 
$
(4,179
)
 
$
(1,339
)
 
$
(7,768
)
 
$
(2,019
)
 
Interest on deposits
Amount reclassified to interest expense on other borrowings
 
98

 
—

 
125

 
—

 
Interest on other borrowings
 
 
4,081

 
1,339

 
7,643

 
2,019

 
Income before taxes
Tax effect
 
$
(1,088
)
 
$
(360
)
 
$
(2,038
)
 
$
(543
)
 
Income tax expense
Net of tax
 
$
2,993

 
$
979

 
$
5,605

 
$
1,476

 
Net income


Earnings per Share

The following table shows the computation of basic and diluted earnings per share for the periods indicated:
 
 
 
Three Months Ended
 
Six Months Ended
(In thousands, except per share data)
 
 
June 30,
2019
 
June 30,
2018
 
June 30,
2019
 
June 30,
2018
Net income
 
 
$
81,466

 
$
89,580

 
$
170,612

 
$
171,561

Less: Preferred stock dividends
 
 
2,050

 
2,050

 
4,100

 
4,100

Net income applicable to common shares
(A)
 
79,416

 
87,530

 
166,512

 
167,461

Weighted average common shares outstanding
(B)
 
56,662

 
56,299

 
56,596

 
56,218

Effect of dilutive potential common shares
 
 
 
 
 
 
 
 
 
Common stock equivalents
 
 
699

 
928

 
700

 
909

Weighted average common shares and effect of dilutive potential common shares
(C)
 
57,361

 
57,227

 
57,296

 
57,127

Net income per common share:
 
 
 
 
 
 
 
 
 
Basic
(A/B)
 
$
1.40

 
$
1.55

 
$
2.94

 
$
2.98

Diluted
(A/C)
 
$
1.38

 
$
1.53

 
$
2.91

 
$
2.93



Potentially dilutive common shares can result from stock options, restricted stock unit awards, stock warrants and shares to be issued under the Employee Stock Purchase Plan and the Directors Deferred Fee and Stock Plan, being treated as if they had been either exercised or issued, computed by application of the treasury stock method. While potentially dilutive common shares are typically included in the computation of diluted earnings per share, potentially dilutive common shares are excluded from this computation in periods in which the effect would reduce the loss per share or increase the income per share.