2014

PrivateBancorp Reports Fourth Quarter and Full Year 2013 Earnings Earnings per share of $0.43 for fourth quarter 2013, up 65 percent from fourth quarter 2012

Earnings per share of $1.57 for full year 2013, up 78 percent from full year 2012

CHICAGO, Jan. 16, 2014 /PRNewswire/ -- PrivateBancorp, Inc. (NASDAQ: PVTB) today reported net income available to common shareholders of $33.7 million or $0.43 per diluted share for the fourth quarter 2013, compared to $20.0 million or $0.26 per diluted share for the fourth quarter 2012 and $33.1 million or $0.42 per diluted share for the third quarter 2013. For the year ended December 31, 2013, the Company had net income available to common shareholders of $122.9 million or $1.57 per diluted share, compared to $64.5 million or $0.88 per diluted share for the year ended December 31, 2012.

"We finished the year with another strong quarter for PrivateBancorp," said Larry D. Richman, President and Chief Executive Officer, PrivateBancorp, Inc. "Compared to the prior year, earnings per share increased 65 percent for the quarter and 78 percent for the year. We grew net loans $235 million and client deposits $321 million in the quarter. This growth, along with further reductions of credit costs, helped to drive net income to $34 million in the period.

"I am proud of what the team accomplished in 2013 and how that positions us for the future," Richman continued. "Our 2013 net income nearly doubled and reflects continued client relationship development as well as our success in significantly improving asset quality, which drove credit costs lower for the year. Revenue grew to $538 million for the year despite ongoing pricing pressure in the competitive, low-rate environment. As we look ahead to 2014, our credit problems are largely behind us and we believe we can benefit from a strengthening economic environment. We will focus on consistent execution of our strategy, adding new commercial banking relationships and expanding those we have through cross-sell of our commercial, wealth management and personal banking services."

Fourth Quarter 2013 Highlights

  • Net revenue was $136.0 million, an increase of $1.6 million compared to third quarter 2013, benefiting from the growth in average loans and lower cost of funds.
  • Total loans grew to $10.6 billion as of December 31, 2013, up 5 percent from a year ago and 2 percent from September 30, 2013. The increase in total loans reflected growth in commercial and industrial loans and commercial real estate and construction loans compared to the third quarter 2013.
  • Total deposits were $12.0 billion as of December 31, 2013, an increase of $181.1 million from September 30, 2013, with noninterest bearing demand deposit balances representing 26 percent of total deposits.
  • Net interest margin was 3.18 percent, up 2 basis points from a year ago and stable compared to third quarter 2013, benefiting in part from the repayment of $120 million of subordinated debt during the quarter.
  • Nonperforming assets to total assets declined to 0.87 percent at December 31, 2013, compared to 1.57 percent one year ago and 1.07 percent at September 30, 2013. Nonperforming loans were $94.2 million as of December 31, 2013, a decline of 32 percent from December 31, 2012, and 17 percent from September 30, 2013. In comparison to the third quarter 2013, a reduction in net charge-offs of $3.2 million contributed to the $2.9 million decline in provision for loan losses.  
  • Return on average common equity was 10.3 percent and return on average assets was 0.96 percent for the fourth quarter 2013.

Operating Performance

Net revenue was $136.0 million in the fourth quarter 2013, an increase of 1 percent compared to the fourth quarter 2012 and the third quarter 2013. The increase in net revenue was attributable to growth in net interest income from higher average loan balances and lower cost of funds. For the full year 2013, net revenue was $538.3 million, up 1 percent compared to 2012, reflecting both increased net interest income from higher average loan balances and noninterest income.

Operating profit of $60.2 million in the fourth quarter 2013 was up 12 percent compared to the fourth quarter 2012 and down 5 percent compared to the third quarter 2013. The reduction in operating profit compared to the third quarter 2013 was a result of increased noninterest expenses primarily related to increased employee expense, and an increase in the provision for unfunded commitments. For the full year, operating profit was $235.0 million, up 14 percent compared to 2012, and benefited primarily from lower costs associated with net foreclosed property expenses and a reduction of share-based compensation costs.

Net interest income was $108.5 million in the fourth quarter 2013, an increase of 3 percent compared to the fourth quarter 2012 and 2 percent compared to the third quarter 2013. The growth in net interest income over the prior quarter benefited from a 2 percent increase in average loan balances and the repayment of $120 million of long-term subordinated debt. For the full year 2013, net interest income was $421.1 million, compared to net interest income of $419.9 million for full year 2012. Net interest margin was 3.18 percent in the fourth quarter 2013, compared to 3.16 percent in the fourth quarter 2012 and 3.18 percent in the third quarter 2013. While one-month LIBOR declined in the fourth quarter, net interest margin benefited from the repayment of subordinated debt and higher yields on earning assets compared to the prior quarter. The lending environment remains highly competitive and continues to put downward pressure on loan pricing.

Noninterest income was $26.7 million in the fourth quarter 2013, a decline of $2.7 million compared to the fourth quarter 2012 and $1.0 million compared to the third quarter 2013. Lower mortgage financing volume reduced noninterest income by $2.3 million compared to the fourth quarter 2012 and $1.1 million compared to the third quarter 2013. Syndication fees were comparable to the fourth quarter 2012, though declined by $2.2 million compared to the third quarter 2013. The level of syndication activity may vary from quarter to quarter with syndication fees for third quarter 2013 a record amount.

Trust and investments income was $4.6 million, an increase of 9 percent from the fourth quarter 2012 and 1 percent from the third quarter 2013. Focused marketing efforts to add trust and investment clients in 2013 contributed to the 10 percent increase of assets under management and administration compared to the prior year. Capital markets revenue of $5.7 million declined from $6.7 million in the fourth quarter 2012 and increased from $3.9 million in the third quarter 2013. Capital markets revenue excluding the impact of CVA was $5.1 million in the quarter, a decrease of $789,000 from the fourth quarter 2012 and an increase of $659,000 from the previous quarter. Fourth quarter 2013 capital markets revenue included an increase in foreign exchange activity compared to the third quarter. Treasury management fees of $6.3 million grew 13 percent from the fourth quarter 2012 and 2 percent from the previous quarter, benefiting in part from new credit relationships.

For the full year 2013, noninterest income increased 3 percent to $114.0 million compared to $111.0 million for the full year 2012. In comparison to the prior year, syndication fees increased 48 percent, benefiting from the Company's loan origination capabilities combined with a broader product offering and strong market demand. Capital markets products revenue declined as client demand for interest rate management products shifted to lower revenue products and mortgage banking revenue decreased due to lower volumes primarily as a result of increasing mortgage rates.

Expenses

Noninterest expense was $75.8 million in the fourth quarter 2013, a decrease of 7 percent from the fourth quarter 2012 and an increase of 6 percent from third quarter 2013. The reduction of noninterest expense compared to the fourth quarter 2012 reflected a decline of $6.0 million in expenses associated primarily with reduced net foreclosed property expense and share-based compensation costs offset by increased provision for unfunded commitments. The efficiency rate was 55.7 percent in the fourth quarter, compared to 60.2 percent in fourth quarter 2012 and 53.0 percent in third quarter 2013.

Compared to the third quarter 2013, the increase of noninterest expense was comprised primarily of $1.2 million of additional variable performance-based compensation and a $1.0 million increase in provision for unfunded commitments, offset by a $796,000 reduction in net foreclosed property expense. In the third quarter 2013, other expenses benefited from a $1.3 million reduction in the unfunded commitment reserve that was associated with a single credit.

Noninterest expense for the full year 2013 was $303.3 million, a decline of 7 percent from $327.1 million for 2012 with reductions in net foreclosed property expense, certain share-based compensation, insurance and loan and collection costs.

Credit Quality

In 2013, the Company significantly improved credit quality and reduced credit costs. Nonperforming assets were $122.8 million at December 31, 2013, a decline of 44 percent from December 31, 2012, and 17 percent from September 30, 2013, with the reduction attributable to continued sales of other real estate owned ("OREO") and resolution of nonperforming loans. At year end, OREO was $28.5 million, a reduction of $53.3 million from December 31, 2012, and $6.8 million from September 30, 2013, as a result of ongoing dispositions of foreclosed property. Nonperforming loans were $94.2 million, compared to $138.8 million at December 31, 2012, and $113.3 million at September 30, 2013. Nonperforming assets to total assets were 0.87 percent at December 31, 2013, compared to 1.57 percent at December 31, 2012, and 1.07 percent at September 30, 2013.

As of December 31, 2013, the allowance for loan losses as a percent of total loans was 1.34 percent, down from 1.59 percent at December 31, 2012, and 1.40 percent at September 30, 2013. Net charge-offs were $7.3 million for the fourth quarter 2013, a decline of 59 percent compared to the fourth quarter 2012 and 30 percent compared to the third quarter 2013, and benefited from a higher level of loan recoveries. The provision for loan losses was $4.9 million for the fourth quarter 2013 compared to $12.6 million for the fourth quarter 2012 and $7.8 million for third quarter 2013. On a full year basis, provision for loan loss expense was $31.2 million compared to $70.9 million for the full year 2012, reflecting lower net charge-offs and a decline in reserve requirements for problem loans.

Credit quality results exclude covered assets acquired through an FDIC-assisted transaction that are subject to a loss sharing agreement.

Balance Sheet

Total assets were $14.1 billion at December 31, 2013, flat compared to $14.1 billion at December 31, 2012, and up from $13.9 billion at September 30, 2013. Total loans of $10.6 billion grew $504.0 million or 5 percent from December 31, 2012 and $234.6 million or 2 percent from the previous quarter end, benefiting largely from net loan growth of commercial and industrial loans. In comparison to September 30, 2013, commercial real estate and construction loans increased as well, despite continued payoffs of loans, many of which were replaced with permanent financing. At December 31, 2013, total commercial loans comprised 67 percent of total loans, up from 64 percent a year ago, and total commercial real estate and construction loans comprised 27 percent of total loans, down from 28 percent at December 31, 2012.

Total deposits were $12.0 billion at December 31, 2013, a decline of 1 percent as of December 31, 2012, and an increase of 2 percent compared to September 30, 2013. At December 31, 2013, the loan to deposit ratio was 88.6 percent. Noninterest bearing demand deposits were $3.2 billion and comprised 26 percent of total deposits at December 31, 2013. On October 24, 2013, the $120.0 million balance of a subordinated debt facility with a weighted average rate of 3.8 percent was repaid in full and replaced with lower-cost liquidity.

The Company's investment securities portfolio was $2.5 billion at December 31, 2013, up 9 percent from December 31, 2012, and a relatively flat compared to September 30, 2013. The securities portfolio is primarily composed of U.S. government agency backed mortgage securities, U.S. Treasuries, agency backed collateralized mortgage obligations, and investment grade municipal bonds.

Capital

As of December 31, 2013, the total risk-based capital ratio was 13.30 percent, the Tier 1 risk-based capital ratio was 11.08 percent, and the leverage ratio was 10.37 percent. The Tier 1 common capital ratio was 9.19 percent (without giving effect to the final Basel III capital rules adopted and issued by the Federal Reserve Board in July 2013) and tangible common equity ratio was 8.57 percent at the end of the fourth quarter 2013.

Quarterly Conference Call and Webcast Presentation

PrivateBancorp will host a conference call on Thursday, January 16, 2014, at 10 a.m. CT. The call may be accessed by telephone at (888) 782-9127 (U.S. and Canada) or (706) 634-5643 (International) and entering passcode #25250239. A live webcast of the call can be accessed on the Company website at: investor.theprivatebank.com by visiting the Investor Relations tab under the About Us section. A rebroadcast will be available beginning approximately two hours after the call until midnight on January 30, 2014, by calling (855) 859-2056 (U.S. and Canada) or (404) 537-3406 (International) and entering passcode #25250239.

About PrivateBancorp, Inc.

PrivateBancorp, Inc., through its subsidiaries, delivers customized business and personal financial services to middle-market companies, as well as business owners, executives, entrepreneurs and families in all of the markets and communities we serve. As of December 31, 2013, the Company had 33 offices in 10 states and $14.1 billion in assets. The Company website is www.theprivatebank.com.

Forward-Looking Statements

Statements made in this press release that are not historical facts may constitute forward-looking statements within the meaning of federal securities laws. Our ability to predict results or the actual effects of future plans, strategies or events is inherently uncertain. Factors which could cause actual results to differ from those reflected in forward-looking statements include:

  • continued uncertainty regarding U.S. and global economic outlook that may impact market conditions and credit quality or prolong weakness in demand for loans or other banking products and services;
  • unanticipated developments in pending or prospective loan transactions or greater than expected paydowns or payoffs of existing loans;
  • unanticipated changes in interest rates;
  • competitive trends in our markets;
  • unforeseen credit quality problems that could result in charge-offs greater than we have anticipated in our allowance for loan losses;
  • slower than anticipated dispositions of other real estate owned or declines in real estate values which may negatively impact net foreclosed property expense;
  • lack of sufficient or cost-effective sources of liquidity or funding as and when needed;
  • loss of key personnel or an inability to recruit and retain appropriate talent;
  • potential impact of recently adopted capital rules;
  • greater than anticipated impact on costs, revenues and offered products and services associated with the implementation of other regulatory changes;
  • changes in monetary or fiscal policies of the U.S. Government and the potential impact from current debates related to the federal debt ceiling; or
  • failures or disruptions to our data processing or other information or operational systems, including the potential impact of disruptions or breaches at our third party service providers.

These factors should be considered in evaluating forward-looking statements and undue reliance should not be placed on our forward-looking statements. Readers should also consider the risks, assumptions and uncertainties set forth in the "Risk Factors" section of our Form 10-K for the year ended December 31, 2012 as well as those set forth in our subsequent periodic reports filed with the SEC. Forward-looking statements speak only as of the date they are made and we assume no obligation to update any of these statements in light of new information, future events or otherwise unless required under the federal securities laws.                    

Non-U.S. GAAP Financial Measures

This press release contains both financial measures based on accounting principles generally accepted in the United States (U.S. GAAP) and non-U.S. GAAP based financial measures. We believe that presenting these non-U.S. GAAP financial measures will provide information useful to investors in understanding our underlying operational performance, our business, and performance trends and facilitates comparisons with the performance of others in the banking industry. If non-U.S. GAAP financial measures are used, the comparable U.S. GAAP financial measure, as well as the reconciliation to the comparable U.S. GAAP financial measure, can be found in this press release. These disclosures should not be viewed as a substitute for operating results determined in accordance with U.S. GAAP, nor are they necessarily comparable to non-U.S. GAAP performance measures that may be presented by other companies.

Editor's Note: Financial highlights attached. Full financial supplement available on Company's website at www.theprivatebank.com.



Consolidated Income Statements

(Amounts in thousands, except per share data)


Quarter Ended

December 31,


Year Ended
December 31,


2013


2012


2013


2012


Unaudited


Unaudited


Unaudited


Audited

Interest Income






Loans, including fees

$

110,723


$

108,172


$

433,829


$

423,211

Federal funds sold and interest-bearing deposits in banks

221


452


652


965

Securities:






Taxable

13,038


12,938


51,310


56,826

Exempt from Federal income taxes

1,604


1,462


6,200


5,487

Other interest income

34


168


247


547

Total interest income

125,620


123,192


492,238


487,036

Interest Expense






Interest-bearing demand deposits

1,021


985


4,202


3,378

Savings deposits and money market accounts

4,169


4,531


16,350


17,604

Brokered and time deposits

5,062


5,561


20,161


21,832

Short-term and secured borrowings

161


77


850


443

Long-term debt

6,751


7,235


29,612


23,846

Total interest expense

17,164


18,389


71,175


67,103

Net interest income

108,456


104,803


421,063


419,933

Provision for loan and covered loan losses

4,476


13,177


31,796


71,425

Net interest income after provision for loan and covered loan losses

103,980


91,626


389,267


348,508

Non-interest Income






Trust and Investments

4,613


4,232


18,377


17,017

Mortgage banking

1,858


4,197


12,172


13,460

Capital markets products

5,720


6,744


20,728


25,958

Treasury management

6,321


5,606


24,668


21,510

Loan, letter of credit and commitment fees

4,474


4,671


17,217


18,173

Syndication fees

2,153


2,231


13,447


9,107

Deposit service charges and fees and other income

1,322


1,582


6,207


6,021

Net securities gains (losses)

279


191


1,174


(205)

Total non-interest income

26,740


29,454


113,990


111,041

Non-interest Expense






Salaries and employee benefits

42,575


45,253


166,929


174,948

Net occupancy expense

7,548


7,762


30,027


30,571

Technology and related costs

3,443


3,249


13,726


13,250

Marketing

3,592


2,448


12,590


10,311

Professional services

2,393


1,998


8,539


8,353

Outsourced servicing costs

1,612


1,814


6,817


7,419

Net foreclosed property expenses

3,600


9,571


20,194


38,296

Postage, telephone, and delivery

845


909


3,521


3,497

Insurance

2,934


3,290


10,867


15,186

Loan and collection expense

2,351


2,227


8,753


11,631

Other expenses

4,934


2,794


21,351


13,670

Total non-interest expense

75,827


81,315


303,314


327,132

Income before income taxes

54,893


39,765


199,943


132,417

Income tax provision

21,187


16,682


76,994


54,521

Net income

33,706


23,083


122,949


77,896

Preferred stock dividends and discount accretion


3,043



13,368

Net income available to common stockholders

$

33,706


$

20,040


$

122,949


$

64,528

Per Common Share Data






Basic earnings per share

$

0.43


$

0.26


$

1.58


$

0.88

Diluted earnings per share

$

0.43


$

0.26


$

1.57


$

0.88

Cash dividends declared

$

0.01


$

0.01


$

0.04


$

0.04

Weighted-average common shares outstanding

76,533


75,035


76,398


71,951

Weighted-average diluted common shares outstanding

76,967


75,374


76,645


72,174

Note: Certain reclassifications have been made to prior period financial statements to place them on a basis comparable with the current period financial statements.



Consolidated Income Statements

(Amounts in thousands, except per share data)

(Unaudited)


4Q13


3Q13


2Q13


1Q13


4Q12

Interest Income









Loans, including fees

$

110,723


$

108,912


$

107,407


$

106,787


$

108,172

Federal funds sold and interest-bearing deposits in banks

221


111


112


208


452

Securities:









Taxable

13,038


12,931


12,519


12,822


12,938

Exempt from Federal income taxes

1,604


1,562


1,532


1,502


1,462

Other interest income

34


61


62


90


168

Total interest income

125,620


123,577


121,632


121,409


123,192

Interest Expense









Interest-bearing demand deposits

1,021


1,032


1,034


1,115


985

Savings deposits and money market accounts

4,169


3,895


3,887


4,399


4,531

Brokered and time deposits

5,062


5,014


4,956


5,129


5,561

Short-term and secured borrowings

161


161


410


118


77

Long-term debt

6,751


7,640


7,613


7,608


7,235

Total interest expense

17,164


17,742


17,900


18,369


18,389

Net interest income

108,456


105,835


103,732


103,040


104,803

Provision for loan and covered loan losses

4,476


8,120


8,843


10,357


13,177

Net interest income after provision for loan and covered loan losses

103,980


97,715


94,889


92,683


91,626

Non-interest Income









Trust and Investments

4,613


4,570


4,800


4,394


4,232

Mortgage banking

1,858


2,946


3,198


4,170


4,197

Capital markets products

5,720


3,921


6,048


5,039


6,744

Treasury management

6,321


6,214


6,209


5,924


5,606

Loan, letter of credit and commitment fees

4,474


4,384


4,282


4,077


4,671

Syndication fees

2,153


4,322


3,140


3,832


2,231

Deposit service charges and fees and other income

1,322


1,298


1,196


2,391


1,582

Net securities gains (losses)

279


118


136


641


191

Total non-interest income

26,740


27,773


29,009


30,468


29,454

Non-interest Expense









Salaries and employee benefits

42,575


41,360


39,854


43,140


45,253

Net occupancy expense

7,548


7,558


7,387


7,534


7,762

Technology and related costs

3,443


3,343


3,476


3,464


3,249

Marketing

3,592


2,986


3,695


2,317


2,448

Professional services

2,393


2,465


1,782


1,899


1,998

Outsourced servicing costs

1,612


1,607


1,964


1,634


1,814

Net foreclosed property expenses

3,600


4,396


5,555


6,643


9,571

Postage, telephone, and delivery

845


852


981


843


909

Insurance

2,934


2,590


2,804


2,539


3,290

Loan and collection expense

2,351


1,345


2,280


2,777


2,227

Other expenses

4,934


2,767


7,477


6,173


2,794

Total non-interest expense

75,827


71,269


77,255


78,963


81,315

Income before income taxes

54,893


54,219


46,643


44,188


39,765

Income tax provision

21,187


21,161


17,728


16,918


16,682

Net income

33,706


33,058


28,915


27,270


23,083

Preferred stock dividends and discount accretion





3,043

Net income available to common stockholders

$

33,706


$

33,058


$

28,915


$

27,270


$

20,040

Per Common Share Data









Basic earnings per share

$

0.43


$

0.42


$

0.37


$

0.35


$

0.26

Diluted earnings per share

$

0.43


$

0.42


$

0.37


$

0.35


$

0.26

Cash dividends declared

$

0.01


$

0.01


$

0.01


$

0.01


$

0.01

Weighted-average common shares outstanding

76,533


76,494


76,415


76,143


75,035

Weighted-average diluted common shares outstanding

76,967


76,819


76,581


76,203


75,374





















Consolidated Balance Sheets

(Dollars in thousands)


12/31/13


9/30/13


6/30/13


3/31/13


12/31/12


(Unaudited)


(Unaudited)


(Unaudited)


(Unaudited)


(Audited)

Assets









Cash and due from banks

$

133,518


$

247,460


$

150,683


$

118,583


$

234,308

Federal funds sold and interest-bearing deposits in banks

306,544


180,608


147,699


203,647


707,143

Loans held-for-sale

26,816


27,644


34,803


38,091


49,696

Securities available-for-sale, at fair value

1,602,476


1,611,022


1,580,179


1,457,433


1,451,160

Securities held-to-maturity, at amortized cost

921,436


931,342


955,688


959,994


863,727

Federal Home Loan Bank ("FHLB") stock

30,005


34,063


34,063


34,288


43,387

Loans – excluding covered assets, net of unearned fees

10,644,021


10,409,443


10,094,636


10,033,803


10,139,982

Allowance for loan losses

(143,109)


(145,513)


(148,183)


(153,992)


(161,417)

Loans, net of allowance for loan losses and unearned fees

10,500,912


10,263,930


9,946,453


9,879,811


9,978,565

Covered assets

112,746


140,083


158,326


176,855


194,216

Allowance for covered loan losses

(16,511)


(21,653)


(24,995)


(24,089)


(24,011)

Covered assets, net of allowance for covered loan losses

96,235


118,430


133,331


152,766


170,205

Other real estate owned, excluding covered assets

28,548


35,310


57,134


73,857


81,880

Premises, furniture, and equipment, net

39,704


36,445


37,025


38,373


39,508

Accrued interest receivable

37,004


35,758


38,325


39,205


34,832

Investment in bank owned life insurance

53,865


53,539


53,216


52,873


52,513

Goodwill

94,041


94,484


94,496


94,509


94,521

Other intangible assets

8,892


10,486


11,266


12,047


12,828

Derivative assets

48,422


57,771


57,361


90,303


99,261

Other assets

157,328


130,848


144,771


126,450


143,981

Total assets

$

14,085,746


$

13,869,140


$

13,476,493


$

13,372,230


$

14,057,515

Liabilities









Demand deposits:









Noninterest-bearing

$

3,172,676


$

3,106,986


$

2,736,868


$

2,756,879


$

3,690,340

Interest-bearing

1,470,856


1,183,471


1,234,134


1,390,955


1,057,390

Savings deposits and money market accounts

4,799,561


4,778,057


4,654,930


4,741,864


4,912,820

Brokered time deposits

1,119,777


1,303,596


1,190,796


983,625


993,455

Time deposits

1,450,771


1,460,446


1,491,604


1,518,980


1,519,629

Total deposits

12,013,641


11,832,556


11,308,332


11,392,303


12,173,634

Short-term and secured borrowings

8,400


131,400


308,700


107,775


5,000

Long-term debt

627,793


499,793


499,793


499,793


499,793

Accrued interest payable

6,326


6,042


5,963


6,787


7,141

Derivative liabilities

48,890


55,933


62,014


84,370


93,276

Other liabilities

78,792


69,728


58,651


49,137


71,505

Total liabilities

12,783,842


12,595,452


12,243,453


12,140,165


12,850,349

Equity









Common stock:









Voting

75,240


75,240


75,238


73,144


73,479

Nonvoting

1,585


1,585


1,585


3,536


3,536

Treasury stock

(6,415)


(7,303)


(9,001)


(9,631)


(24,150)

Additional paid-in capital

1,022,023


1,019,143


1,016,615


1,014,443


1,026,438

Retained earnings

199,627


166,700


134,423


106,288


79,799

Accumulated other comprehensive income, net of tax

9,844


18,323


14,180


44,285


48,064

Total equity

1,301,904


1,273,688


1,233,040


1,232,065


1,207,166

Total liabilities and equity

$

14,085,746


$

13,869,140


$

13,476,493


$

13,372,230


$

14,057,515




Selected Financial Data

(Amounts in thousands, except per share data)

(Unaudited)


4Q13


3Q13


2Q13


1Q13


4Q12

Selected Statement of Income Data:










Net interest income

$

108,456



$

105,835



$

103,732



$

103,040



$

104,803


Net revenue (1)(2)

$

136,036



$

134,426



$

133,546



$

134,292



$

135,022


Operating profit (1)(2)

$

60,209



$

63,157



$

56,291



$

55,329



$

53,707


Provision for loan and covered loan losses

$

4,476



$

8,120



$

8,843



$

10,357



$

13,177


Income before income taxes

$

54,893



$

54,219



$

46,643



$

44,188



$

39,765


Net income available to common stockholders

$

33,706



$

33,058



$

28,915



$

27,270



$

20,040












Per Common Share Data:










Basic earnings per share

$

0.43



$

0.42



$

0.37



$

0.35



$

0.26


Diluted earnings per share

$

0.43



$

0.42



$

0.37



$

0.35



$

0.26


Dividends declared

$

0.01



$

0.01



$

0.01



$

0.01



$

0.01


Book value (period end) (1)

$

16.75



$

16.40



$

15.88



$

15.87



$

15.65


Tangible book value (period end) (1)(2)

$

15.43



$

15.05



$

14.52



$

14.49



$

14.26


Market value (close)

$

28.93



$

21.40



$

21.22



$

18.89



$

15.32


Book value multiple

1.73

x


1.31

x


1.34

x


1.19

x


0.98

x











Share Data:










Weighted-average common shares outstanding

76,533



76,494



76,415



76,143



75,035


Weighted-average diluted common shares outstanding

76,967



76,819



76,581



76,203



75,374


Common shares issued (period end)

77,982



77,993



78,015



78,050



78,062


Common shares outstanding (period end)

77,708



77,680



77,630



77,649



77,115












Performance Ratio:










Return on average assets

0.96

%


0.96

%


0.86

%


0.81

%


0.67

%

Return on average common equity

10.28

%


10.43

%


9.28

%


9.01

%


6.64

%

Return on average tangible common equity (1)(2)

11.33

%


11.55

%


10.30

%


10.04

%


7.45

%

Net interest margin (1)(2)

3.18

%


3.18

%


3.22

%


3.19

%


3.16

%

Fee revenue as a percent of total revenue (1)

19.61

%


20.72

%


21.77

%


22.45

%


21.83

%

Non-interest income to average assets

0.76

%


0.81

%


0.87

%


0.91

%


0.85

%

Non-interest expense to average assets

2.16

%


2.07

%


2.31

%


2.35

%


2.35

%

Net overhead ratio (1)

1.40

%


1.26

%


1.44

%


1.44

%


1.50

%

Efficiency ratio (1)(2)

55.74

%


53.02

%


57.85

%


58.80

%


60.22

%











Balance Sheet Ratios:










Loans to deposits (period end) (3)

88.60

%


87.97

%


89.27

%


88.08

%


83.29

%

Average interest-earning assets to average interest-bearing liabilities

144.87

%


140.72

%


139.76

%


141.21

%


150.03

%











Capital Ratios (period end):










Total risk-based capital (1)

13.30

%


13.48

%


13.70

%


13.58

%


13.17

%

Tier 1 risk-based capital (1)

11.08

%


11.05

%


11.04

%


10.90

%


10.51

%

Tier 1 leverage ratio (1)

10.37

%


10.32

%


10.25

%


9.86

%


9.56

%

Tier 1 common equity to risk-weighted assets (1)(2)(4)

9.19

%


9.11

%


9.05

%


8.89

%


8.52

%

Tangible common equity to tangible assets (1)(2)

8.57

%


8.49

%


8.43

%


8.48

%


7.88

%

Total equity to total assets

9.24

%


9.18

%


9.15

%


9.21

%


8.59

%
















(1) Refer to Glossary of Terms for definition.

(2) This is a non-U.S. GAAP financial measure. Refer to "Non-U.S. GAAP Financial Measures" for a reconciliation from non-U.S. GAAP to U.S. GAAP.

(3) Excludes covered assets. Refer to Glossary of Terms for definition.

(4) Does not give effect to the final Basel III capital rules adopted and issued by the Federal Reserve Board in July 2013.



Selected Financial Data (continued)

(Dollars in thousands)

(Unaudited)












4Q13


3Q13


2Q13


1Q13


4Q12

Additional Selected Information:









Increase (decrease) credit valuation adjustment on capital markets derivatives (1)

$

619


$

(521)


$

1,882


$

246


$

854

Salaries and employee benefits:









Salaries and wages

$

23,971


$

23,639


$

23,397


$

24,015


$

24,333

Share-based costs

3,316


3,261


3,236


2,863


5,665

Incentive compensation, retirement costs and other employee benefits

15,288


14,460


13,221


16,262


15,255

Total salaries and employee benefits

$

42,575


$

41,360


$

39,854


$

43,140


$

45,253










Provision for unfunded commitments

$

1,019


$

(1,346)


$

467


$

1,723


$

(867)










Assets under management and administration (AUMA) (1)

$

5,731,980


$

5,570,614


$

5,427,498


$

5,515,199


$

5,196,094

Custody assets included in AUMA

$

2,506,291


$

2,427,093


$

2,351,163


$

2,438,600


$

2,345,410

SOURCE PrivateBancorp, Inc.



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