PrivateBancorp Reports Fourth Quarter and Full Year 2015 Earnings

Earnings per share up 38 percent for the quarter from prior year quarter and up 20 percent for the year from full year 2014

21 Jan, 2016, 07:30 ET from PrivateBancorp, Inc.

CHICAGO, Jan. 21, 2016 /PRNewswire/ -- PrivateBancorp, Inc. (NASDAQ: PVTB) today reported net income of $52.1 million, or $0.65 per diluted share, for the fourth quarter 2015, compared to $37.2 million, or $0.47 per diluted share, for the fourth quarter 2014, and $45.3 million, or $0.57 per diluted share, for the third quarter 2015. For the year ended December 31, 2015, the Company had net income of $185.3 million, or $2.32 per diluted share, compared to $153.1 million, or $1.94 per diluted share, for the year ended December 31, 2014.

"Our 2015 results reflect the benefit of our focus on consistent execution and building long-term profitable client relationships," said Larry D. Richman, President and Chief Executive Officer, PrivateBancorp, Inc. "We grew loans, deposits and fee income as we built new client relationships and expanded services to existing clients. In fact, in the fourth quarter we generated almost $500 million in new loans to new clients and increased noninterest bearing deposits by more than $285 million. Our ability to generate earning assets and grow revenue throughout the year, and to manage expenses, led to a 20 percent increase in operating profit. Net income was up 21 percent compared to a year ago, our seventh consecutive year of improving our bottom line results and strengthening our balance sheet.

"As we look into 2016, we believe we are well positioned to continue to add new client relationships and serve existing clients as they carry out their business objectives. We are confident in the business we have built and proud of the value we deliver to our clients, our communities and our shareholders."

Fourth Quarter 2015 Highlights

  • Total loans grew to $13.3 billion, up $1.4 billion from a year ago and $187.2 million from September 30, 2015.
  • Total deposits were $14.3 billion, increasing $1.3 billion from a year ago and $447.9 million from September 30, 2015. Noninterest-bearing demand deposits grew $839.0 million from a year ago and $286.9 million from September 30, 2015, representing 30 percent of total deposits at December 31, 2015, compared to 27 percent a year ago.
  • Net revenue of $170.4 million for the fourth quarter 2015 benefited from growth in average loans, increasing 15 percent from the fourth quarter 2014 and 4 percent from the third quarter 2015. Average loans grew $1.4 billion, or 13 percent, from the fourth quarter 2014 and $397.2 million, or 3 percent, from the third quarter 2015.
  • Net interest margin was 3.25 percent for the fourth quarter 2015, up from 3.07 percent for the fourth quarter 2014 and 3.23 percent for the third quarter 2015. Fourth quarter 2015 net interest margin benefited from fees recognized on early loan repayments. An improvement in short-term rates during the quarter also contributed modestly to net interest margin.
  • The provision for loan and covered loan losses was $2.8 million for the fourth quarter 2015, compared to $4.1 million for the fourth quarter 2014 and $4.2 million for the third quarter 2015.
  • Return on average assets was 1.21 percent and return on average common equity was 12.3 percent for the fourth quarter 2015. For the full year 2015, return on average assets was 1.13 percent, up from 1.04 percent for 2014, and return on average common equity was 11.6 percent, up from 10.9 percent for the prior year.

Operating Performance

Net interest income of $136.6 million in the fourth quarter 2015 increased 17 percent from the fourth quarter 2014 and 4 percent from the third quarter 2015, reflecting growth in average loans of 13 percent from the fourth quarter 2014 and 3 percent from the third quarter 2015. The fourth quarter 2014 also included a charge of $2.4 million related to the trust preferred securities redemption.

Net interest margin was 3.25 percent in the fourth quarter 2015, up 18 basis points from the fourth quarter 2014, reflecting higher loan yields and lower borrowing costs on a comparative basis. Compared to the third quarter 2015, net interest margin increased two basis points. Loan yields were two basis points higher compared to the prior quarter, benefiting from significant loan fees related to early loan repayments and a slight rise in short-term rates during the quarter. Deposits costs increased by one basis point, but the impact on margin was offset by an increase in average noninterest-bearing funds compared to the third quarter. The December interest rate moves will be more impactful in the first quarter 2016 as variable loans reprice.

Noninterest income was $32.6 million in the fourth quarter 2015, compared to $30.4 million for the fourth quarter 2014 and $30.8 million for the third quarter 2015. Treasury management fees were $7.9 million in the fourth quarter 2015, up 8 percent from the fourth quarter 2014, reflecting success in cross-sell activities. Syndication fees were $4.8 million in the fourth quarter 2015, up from $3.9 million in the fourth quarter 2014 and $4.4 million in the third quarter 2015. Syndication fees vary from quarter to quarter depending on the level and mix of loans originated and distributed.

Capital markets revenue of $6.3 million in the fourth quarter 2015 reflected a positive credit valuation adjustment (CVA) of $1.0 million. Excluding the CVA impact for all periods, capital markets revenue was $5.3 million in the fourth quarter 2015, down $623,000 from the fourth quarter 2014 and up $1.0 million from the third quarter 2015. Compared to the third quarter 2015, the fourth quarter benefited from additional interest rate derivative transactions, and foreign exchange revenues grew as spreads increased.

Assets under management and administration (AUMA) were $7.3 billion as of December 31, 2015, compared to $6.6 billion a year ago and $7.2 billion at September 30, 2015, benefiting from the continued focus on cross-selling asset management services to commercial clients and their owners and executives and ongoing client development. Asset management revenue was $4.4 million in the fourth quarter 2015, compared to $4.2 million for the fourth quarter 2014 and $4.5 million for the third quarter 2015.

Expenses

Noninterest expense was $83.0 million for the fourth quarter 2015, comparable to the fourth quarter 2014 and down $2.2 million from the third quarter 2015. The efficiency ratio was 48.7 percent for the fourth quarter 2015, compared to 56.0 percent for the fourth quarter 2014 and 52.2 percent for the third quarter 2015. Other expenses declined $6.6 million from the fourth quarter 2014 and $4.8 million from the third quarter 2015, primarily reflecting a release of reserves for unfunded commitments in the fourth quarter 2015 attributable to a problem credit provided for in the third quarter.

Higher incentive compensation accruals primarily drove an increase in salaries and benefits expense of 13 percent from the fourth quarter 2014 and 5 percent from the third quarter 2015. Compared to the prior year quarter, the quarter also reflected annual salary adjustments made during the first quarter and additional hires made over the last year.

Credit Quality

The allowance for loan losses was $160.7 million, or 1.21 percent of total loans, at December 31, 2015, compared to $162.9 million, or 1.25 percent of total loans, at September 30, 2015. The provision for loan losses was $2.9 million for the fourth quarter 2015, declining $1.1 million from the fourth quarter 2014 and $1.3 million from the third quarter 2015. Factors contributing to the reduction in the overall loan loss reserve and quarterly provision expense from the third quarter 2015 include commercial loan repayments and growth in commercial real estate loans; portfolio movement, including the migration of several commercial loans to improved risk rating positions; and a lower specific reserve requirement related to impaired loans. Annualized net charge-offs to average loans were 0.15 percent for the fourth quarter 2015, compared to 0.05 percent for the fourth quarter 2014 and annualized net recoveries to average loans of 0.05 percent for the third quarter 2015.

Nonperforming assets were 0.35 percent of total assets at December 31, 2015, compared to 0.34 percent at September 30, 2015. At December 31, 2015, nonperforming loans were $53.7 million, increasing $9.8 million from September 30, 2015. OREO declined $5.5 million to $7.3 million at December 31, 2015, largely reflecting properties sold during the quarter.

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 $17.3 billion at December 31, 2015, compared to $15.6 billion at December 31, 2014, and $16.9 billion at September 30, 2015. Total loans of $13.3 billion increased $1.4 billion from December 31, 2014, driven primarily by growth of $751.3 million in commercial and industrial loans and $435.8 million in commercial real estate loans. Compared to September 30, 2015, total loans increased $187.2 million, reflecting growth in commercial real estate and construction loans of $212.7 million and a reduction of commercial loans of $36.4 million from September 30, 2015, impacted by payoffs resulting from several clients completing sales of their businesses prior to year end. At year end, commercial loans represented 65 percent of total loans, and commercial real estate and construction loans represented 29 percent of total loans, relatively consistent with the prior comparative periods.

Total liabilities were $15.6 billion at December 31, 2015, compared to $14.1 billion at December 31, 2014, and $15.2 billion compared to September 30, 2015. Total deposits were $14.3 billion at December 31, 2015, increasing 10 percent from December 31, 2014, and 3 percent from September 30, 2015, reflecting growth in noninterest-bearing demand deposit balances offset by lower traditional brokered time deposits. Average deposits grew 9 percent from the fourth quarter 2014 and 4 percent from the third quarter 2015. Noninterest-bearing demand deposits represented 30 percent of total deposits at December 31, 2015, compared to 27 percent a year ago and 29 percent at September 30, 2015. At December 31, 2015, the loan-to-deposit ratio was 92 percent, compared to 91 percent as of December 31, 2014, and 94 percent as of September 30, 2015.

Capital

As of December 31, 2015, the total risk-based capital ratio was 12.37 percent, the Tier 1 risk-based capital ratio was 10.56 percent, and the leverage ratio was 10.35 percent. The common equity Tier 1 ratio was 9.54 percent and the tangible common equity ratio was 9.33 percent at the end of the year end 2015.

Quarterly Conference Call and Webcast Presentation

PrivateBancorp will host a conference call Thursday, January 21, 2016, 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 #8500868. A live webcast of the call can be accessed at investor.theprivatebank.com. A rebroadcast will be available at that website and by telephone by calling (855) 859-2056 (U.S. and Canada) or (404) 537-3406 (International) and entering passcode #8500868 beginning approximately two hours after the call until midnight ET February 4, 2016.

About PrivateBancorp, Inc.

PrivateBancorp, Inc., through its subsidiary The PrivateBank, 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 it serves. As of December 31, 2015, the Company had 35 offices in 12 states and $17.3 billion in assets. The Company's 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:

  • uncertainty regarding recent geopolitical developments and the U.S. and global economic outlook that may continue to impact market conditions or affect demand for certain banking products and services;
  • unanticipated developments in pending or prospective loan transactions or greater-than-expected paydowns or payoffs of existing loans;
  • competitive pressures in the financial services industry relating to both pricing and loan structures, which may impact our growth rate;
  • unforeseen credit quality problems or changing economic conditions that could result in charge-offs greater than we have anticipated in our allowance for loan losses or changes in value of our investments;
  • unanticipated changes in monetary policies of the Federal Reserve or significant changes in the pace of, or market expectations for, future interest rate increases;
  • an inability to attract and maintain sufficient or cost-effective sources of liquidity or funding as and when needed;
  • unanticipated losses of one or more large depositor relationships, or other significant deposit outflows;
  • loss of key personnel or an inability to recruit appropriate talent cost-effectively;
  • greater-than-anticipated costs to support the growth of our business, including investments in technology, process improvements or other infrastructure enhancements, or greater-than-anticipated compliance costs or regulatory burdens; or
  • failures or disruptions to, or compromises of, our data processing or other information or operational systems, including the potential impact of disruptions or security 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 Annual Report on Form 10-K for our fiscal year ended December 31, 2014, and "Management's Discussion and Analysis of Financial Condition and Results of Operations" section of our Quarterly Report on Form 10-Q for the quarter ended September 30, 2015, as well as those set forth in our subsequent periodic and current 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 of the non-U.S. GAAP financial measure 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 the Company's website at investor.theprivatebank.com.

Consolidated Income Statements

(Amounts in thousands, except per share data)

Quarter Ended

December 31,

Year Ended

December 31,

2015

2014

2015

2014

Unaudited

Unaudited

Unaudited

Audited

Interest Income

Loans, including fees

$

137,006

$

120,649

$

517,461

$

463,755

Federal funds sold and interest-bearing deposits in banks

229

347

903

770

Securities:

Taxable

14,587

13,250

55,283

53,500

Exempt from Federal income taxes

2,306

1,683

8,270

6,173

Other interest income

115

49

295

189

Total interest income

154,243

135,978

582,212

524,387

Interest Expense

Interest-bearing demand deposits

936

1,026

3,845

3,728

Savings deposits and money market accounts

5,487

4,623

20,169

16,857

Time deposits

5,941

5,803

23,092

21,366

Short-term borrowings

201

143

656

638

Long-term debt

5,087

7,507

20,035

27,061

Total interest expense

17,652

19,102

67,797

69,650

Net interest income

136,591

116,876

514,415

454,737

Provision for loan and covered loan losses

2,831

4,120

14,790

12,044

Net interest income after provision for loan and covered loan losses

133,760

112,756

499,625

442,693

Non-interest Income

Asset management

4,392

4,241

17,958

17,268

Mortgage banking

2,812

3,083

14,079

10,245

Capital markets products

6,341

5,705

18,530

18,047

Treasury management

7,878

7,262

30,636

27,472

Loan, letter of credit and commitment fees

4,958

4,901

20,648

19,311

Syndication fees

4,844

3,943

17,205

19,514

Deposit service charges and fees and other income

1,394

1,291

10,134

5,203

Net securities gains

29

822

530

Total non-interest income

32,648

30,426

130,012

117,590

Non-interest Expense

Salaries and employee benefits

52,619

46,746

205,019

182,192

Net occupancy and equipment expense

8,505

7,947

32,708

31,258

Technology and related costs

3,843

3,431

14,267

13,281

Marketing

4,196

3,687

16,122

13,441

Professional services

2,746

3,471

11,320

11,761

Outsourced servicing costs

1,994

1,814

7,494

6,864

Net foreclosed property expenses

1,217

1,456

4,210

8,681

Postage, telephone, and delivery

964

809

3,582

3,400

Insurance

3,644

3,455

13,972

12,451

Loan and collection expense

1,754

2,037

8,556

6,765

Other expenses

1,538

8,172

15,987

21,982

Total non-interest expense

83,020

83,025

333,237

312,076

Income before income taxes

83,388

60,157

296,400

248,207

Income tax provision

31,251

22,934

111,089

95,128

Net income available to common stockholders

$

52,137

$

37,223

$

185,311

$

153,079

Per Common Share Data

Basic earnings per share

$

0.66

$

0.48

$

2.36

$

1.96

Diluted earnings per share

$

0.65

$

0.47

$

2.32

$

1.94

Cash dividends declared

$

0.01

$

0.01

$

0.04

$

0.04

Weighted-average common shares outstanding

78,366

77,173

77,968

77,007

Weighted-average diluted common shares outstanding

79,738

78,122

79,206

77,822

 

Consolidated Income Statements

(Amounts in thousands, except per share data)

(Unaudited)

4Q15

3Q15

2Q15

1Q15

4Q14

Interest Income

Loans, including fees

$

137,006

$

132,106

$

125,647

$

122,702

$

120,649

Federal funds sold and interest-bearing deposits in banks

229

168

245

261

347

Securities:

Taxable

14,587

13,599

13,541

13,556

13,250

Exempt from Federal income taxes

2,306

2,177

1,981

1,806

1,683

Other interest income

115

69

63

48

49

Total interest income

154,243

148,119

141,477

138,373

135,978

Interest Expense

Interest-bearing demand deposits

936

937

966

1,006

1,026

Savings deposits and money market accounts

5,487

5,119

4,953

4,610

4,623

Time deposits

5,941

5,782

5,730

5,639

5,803

Short-term borrowings

201

24

234

197

143

Long-term debt

5,087

5,048

4,972

4,928

7,507

Total interest expense

17,652

16,910

16,855

16,380

19,102

Net interest income

136,591

131,209

124,622

121,993

116,876

Provision for loan and covered loan losses

2,831

4,197

2,116

5,646

4,120

Net interest income after provision for loan and covered loan losses

133,760

127,012

122,506

116,347

112,756

Non-interest Income

Asset management

4,392

4,462

4,741

4,363

4,241

Mortgage banking

2,812

3,340

4,152

3,775

3,083

Capital markets products

6,341

3,098

4,919

4,172

5,705

Treasury management

7,878

8,010

7,421

7,327

7,262

Loan, letter of credit and commitment fees

4,958

5,670

4,914

5,106

4,901

Syndication fees

4,844

4,364

5,375

2,622

3,943

Deposit service charges and fees and other income

1,394

1,585

1,538

5,617

1,291

Net securities gains (losses)

29

260

(1)

534

Total non-interest income

32,648

30,789

33,059

33,516

30,426

Non-interest Expense

Salaries and employee benefits

52,619

50,019

50,020

52,361

46,746

Net occupancy and equipment expense

8,505

8,180

8,159

7,864

7,947

Technology and related costs

3,843

3,583

3,420

3,421

3,431

Marketing

4,196

3,682

4,666

3,578

3,687

Professional services

2,746

3,679

2,585

2,310

3,471

Outsourced servicing costs

1,994

1,786

2,034

1,680

1,814

Net foreclosed property expenses

1,217

1,080

585

1,328

1,456

Postage, telephone, and delivery

964

857

899

862

809

Insurance

3,644

3,667

3,450

3,211

3,455

Loan and collection expense

1,754

2,324

2,210

2,268

2,037

Other expenses

1,538

6,318

3,869

4,262

8,172

Total non-interest expense

83,020

85,175

81,897

83,145

83,025

Income before income taxes

83,388

72,626

73,668

66,718

60,157

Income tax provision

31,251

27,358

27,246

25,234

22,934

Net income available to common stockholders

$

52,137

$

45,268

$

46,422

$

41,484

$

37,223

Per Common Share Data

Basic earnings per share

$

0.66

$

0.58

$

0.59

$

0.53

$

0.48

Diluted earnings per share

$

0.65

$

0.57

$

0.58

$

0.52

$

0.47

Cash dividends declared

$

0.01

$

0.01

$

0.01

$

0.01

$

0.01

Weighted-average common shares outstanding

78,366

78,144

77,942

77,407

77,123

Weighted-average diluted common shares outstanding

79,738

79,401

79,158

78,512

78,122

 

Consolidated Balance Sheets

(Dollars in thousands)

12/31/15

9/30/15

6/30/15

3/31/15

12/31/14

Unaudited

Unaudited

Unaudited

Unaudited

Audited

Assets

Cash and due from banks

$

145,147

$

145,477

$

185,983

$

158,431

$

132,211

Federal funds sold and interest-bearing deposits in banks

238,511

231,600

192,531

799,953

292,341

Loans held-for-sale

108,798

76,225

54,263

89,461

115,161

Securities available-for-sale, at fair value

1,765,366

1,703,926

1,698,233

1,631,237

1,645,344

Securities held-to-maturity, at amortized cost

1,355,283

1,293,433

1,199,120

1,159,853

1,129,285

Federal Home Loan Bank ("FHLB") stock

26,613

30,740

25,854

28,556

28,666

Loans – excluding covered assets, net of unearned fees

13,266,475

13,079,314

12,543,281

12,170,484

11,892,219

Allowance for loan losses

(160,736)

(162,868)

(157,051)

(156,610)

(152,498)

Loans, net of allowance for loan losses and unearned fees

13,105,739

12,916,446

12,386,230

12,013,874

11,739,721

Covered assets

26,954

28,559

30,529

32,191

34,132

Allowance for covered loan losses

(5,712)

(6,337)

(6,332)

(6,021)

(5,191)

Covered assets, net of allowance for covered loan losses

21,242

22,222

24,197

26,170

28,941

Other real estate owned, excluding covered assets

7,273

12,760

15,084

15,625

17,416

Premises, furniture, and equipment, net

42,405

38,265

37,672

38,544

39,143

Accrued interest receivable

45,482

43,064

43,442

41,202

40,531

Investment in bank owned life insurance

56,653

56,292

55,926

55,561

55,207

Goodwill

94,041

94,041

94,041

94,041

94,041

Other intangible assets

3,430

4,008

4,586

5,230

5,885

Derivative assets

40,615

59,978

47,442

56,607

43,062

Other assets

202,823

166,128

161,291

147,003

196,427

Total assets

$

17,259,421

$

16,894,605

$

16,225,895

$

16,361,348

$

15,603,382

Liabilities

Demand deposits:

Noninterest-bearing

$

4,355,700

$

4,068,816

$

3,702,377

$

3,936,181

$

3,516,695

Interest-bearing

1,503,372

1,264,201

1,304,270

1,498,810

1,907,320

Savings deposits and money market accounts

6,296,443

6,249,485

5,992,288

6,156,331

5,171,025

Time deposits

2,190,077

2,315,237

2,390,001

2,510,406

2,494,928

Total deposits

14,345,592

13,897,739

13,388,936

14,101,728

13,089,968

Deposits held-for-sale

122,216

Short-term borrowings

372,467

514,121

434,695

258,788

432,385

Long-term debt

694,788

694,788

694,788

344,788

344,788

Accrued interest payable

7,080

6,509

7,543

7,004

6,948

Derivative liabilities

18,229

21,967

24,696

26,967

26,767

Other liabilities

122,314

111,482

90,441

82,644

98,631

Total liabilities

15,560,470

15,246,606

14,641,099

14,821,919

14,121,703

Equity

Common stock:

Voting

78,439

78,197

78,047

77,968

77,211

Treasury stock

(103)

(63)

(29)

(5,560)

(53)

Additional paid-in capital

1,071,674

1,060,274

1,051,778

1,047,227

1,034,048

Retained earnings

531,682

480,342

435,872

390,247

349,556

Accumulated other comprehensive income, net of tax

17,259

29,249

19,128

29,547

20,917

Total equity

1,698,951

1,647,999

1,584,796

1,539,429

1,481,679

Total liabilities and equity

$

17,259,421

$

16,894,605

$

16,225,895

$

16,361,348

$

15,603,382

 

Selected Financial Data

(Amounts in thousands, except per share data)

(Unaudited)

4Q15

3Q15

2Q15

1Q15

4Q14

Selected Statement of Income Data:

Net interest income

$

136,591

$

131,209

$

124,622

$

121,993

$

116,876

Net revenue (1)(2)

$

170,445

$

163,134

$

158,717

$

156,453

$

148,180

Operating profit (1)(2)

$

87,425

$

77,959

$

76,820

$

73,308

$

65,155

Provision for loan and covered loan losses

$

2,831

$

4,197

$

2,116

$

5,646

$

4,120

Income before income taxes

$

83,388

$

72,626

$

73,668

$

66,718

$

60,157

Net income available to common stockholders

$

52,137

$

45,268

$

46,422

$

41,484

$

37,223

Per Common Share Data:

Basic earnings per share

$

0.66

$

0.58

$

0.59

$

0.53

$

0.48

Diluted earnings per share

$

0.65

$

0.57

$

0.58

$

0.52

$

0.47

Dividends declared

$

0.01

$

0.01

$

0.01

$

0.01

$

0.01

Book value (period end) (1)

$

21.48

$

20.90

$

20.13

$

19.61

$

18.95

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

$

20.25

$

19.65

$

18.88

$

18.35

$

17.67

Market value (period end)

$

41.02

$

38.33

$

39.82

$

35.17

$

33.40

Book value multiple (period end)

1.91

x

1.83

x

1.98

x

1.79

x

1.76

x

Share Data:

Weighted-average common shares outstanding

78,366

78,144

77,942

77,407

77,173

Weighted-average diluted common shares outstanding

79,738

79,401

79,158

78,512

78,122

Common shares issued (period end)

79,099

78,865

78,718

78,654

78,180

Common shares outstanding (period end)

79,097

78,863

78,717

78,494

78,178

Performance Ratio:

Return on average common equity

12.29

%

11.05

%

11.85

%

11.05

%

10.03

%

Return on average assets

1.21

%

1.09

%

1.15

%

1.07

%

0.95

%

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

13.13

%

11.85

%

12.75

%

11.94

%

10.89

%

Net interest margin (1)(2)

3.25

%

3.23

%

3.17

%

3.21

%

3.07

%

Fee revenue as a percent of total revenue (1)

19.28

%

18.88

%

20.97

%

21.28

%

20.66

%

Non-interest income to average assets

0.75

%

0.74

%

0.82

%

0.86

%

0.78

%

Non-interest expense to average assets

1.92

%

2.04

%

2.03

%

2.14

%

2.12

%

Net overhead ratio (1)

1.16

%

1.30

%

1.21

%

1.27

%

1.35

%

Efficiency ratio (1)(2)

48.71

%

52.21

%

51.60

%

53.14

%

56.03

%

Balance Sheet Ratios:

Loans to deposits (period end) (3)

92.48

%

94.11

%

93.68

%

86.30

%

90.85

%

Average interest-earning assets to average interest-bearing liabilities

152.94

%

149.67

%

144.67

%

144.69

%

145.10

%

Capital Ratios (period end):

Total risk-based capital (1)

12.37

%

12.28

%

12.41

%

12.29

%

12.51

%

Tier 1 risk-based capital (1)

10.56

%

10.39

%

10.49

%

10.34

%

10.49

%

Tier 1 leverage ratio (1)

10.35

%

10.35

%

10.24

%

10.16

%

9.96

%

Common equity Tier 1 (1)(4)

9.54

%

9.35

%

9.41

%

9.23

%

9.33

%

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

9.33

%

9.23

%

9.22

%

8.86

%

8.91

%

Total equity to total assets

9.84

%

9.75

%

9.77

%

9.41

%

9.50

%

(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)    

Effective January 1, 2015, the common equity Tier 1 ratio is a required regulatory capital measure and as presented for the 2015 periods is calculated in accordance with the new Basel III capital rules. For periods prior to January 1, 2015, this ratio was considered a non-U.S. GAAP financial measure and was calculated without giving effect to the final Basel III capital rules. Refer to "Non-U.S. GAAP Financial Measures" for a reconciliation from non-U.S. GAAP to U.S. GAAP for periods prior to 2015.

 

Selected Financial Data (continued)

(Dollars in thousands)

(Unaudited)

4Q15

3Q15

2Q15

1Q15

4Q14

Additional Selected Information:

Decrease (increase) credit valuation adjustment on capital markets derivatives (1)

$

1,043

$

(1,227)

$

616

$

(805)

$

(216)

Salaries and employee benefits:

Salaries and wages

$

28,113

$

28,143

$

27,461

$

27,002

$

26,521

Share-based costs

4,871

4,509

4,316

5,143

4,118

Incentive compensation and commissions

14,676

13,308

13,091

11,062

12,053

Payroll taxes, insurance and retirement costs

4,959

4,059

5,152

9,154

4,054

Total salaries and employee benefits

$

52,619

$

50,019

$

50,020

$

52,361

$

46,746

Loan and collection expense:

Loan origination and servicing expense

$

1,445

$

1,522

$

1,607

$

1,626

$

1,528

Loan remediation expense

309

802

603

642

509

Total loan and collection expense

$

1,754

$

2,324

$

2,210

$

2,268

$

2,037

Assets under management and administration (AUMA):

Personal managed

$

1,872,737

$

1,839,829

$

1,892,973

$

1,897,644

$

1,786,633

Corporate and institutional managed

1,787,187

1,800,522

1,883,166

1,826,215

1,347,299

Total managed assets

3,659,924

3,640,351

3,776,139

3,723,859

3,133,932

Custody assets

3,631,149

3,519,364

3,682,388

3,604,333

3,511,996

Total AUMA

$

7,291,073

$

7,159,715

$

7,458,527

$

7,328,192

$

6,645,928

(1)      

Refer to Glossary of Terms for definition.

 

SOURCE PrivateBancorp, Inc.



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