Wintrust Financial Corp. said it plans to sell at least 3.2 million shares of common stock and 4 million tangible equity units, news that sent the regional bank's shares lower.

The company's shares declined 5.1% to $30.60 in after-hours trading. Wintrust, which has assets in excess of $14 billion, has about 31.1 million shares outstanding.

Wintrust, which operates 15 community banks that are located in the greater Chicago and Milwaukee areas, said it intends to use the proceeds from the offerings to redeem preferred shares that were issued and sold to the U.S. Treasury under its Capital Purchase Program. It expects to use any excess proceeds for general corporate purposes.

Each tangible equity unit will be composed of a prepaid stock purchase contract of Wintrust's common stock and a junior subordinated amortizing note.

In October, Wintrust reported its third-quarter profit slid 37%, as the year-earlier period included a large bargain purchases gain. Still, credit-loss provisions dropped sharply in the latest quarter.

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