PrivateBancorp Reports Second Quarter 2011 Results
Net income of $0.08 per share; Asset quality improves
CHICAGO, July 26, 2011 /PRNewswire/ -- PrivateBancorp, Inc. (NASDAQ: PVTB) today reported net income available to common shareholders of $5.5 million, or $0.08 per diluted share, for the second quarter 2011, compared to a net loss of $818,000, or $0.01 loss per diluted share, for the second quarter 2010, and net income of $7.5 million, or $0.10 per diluted share for the first quarter 2011. First quarter 2011 net income included a positive one-time tax adjustment of $2.8 million, or $0.04 per diluted share, relating to the revaluation of the Company's deferred tax asset. For the six months ended June 30, 2011, the Company had net income available to common shareholders of $13.0 million, or $0.18 per diluted share, compared to a net loss of $25.1 million, or $0.36 loss per diluted share, for the six months ended June 30, 2010.
"We continue to build our commercial middle market bank and we are pleased to report a fourth consecutive profitable quarter, with meaningful progress in asset quality improvement as potential problem loans declined and we accelerated loan dispositions," said Larry D. Richman. "Our team is focused on continuing to develop quality commercial banking relationships and we added approximately $200 million in loans from new commercial and industrial clients in the second quarter. However, total loans were down due to low borrowing demand, real estate refinancing, and problem loan sales. Overall we continue to employ a disciplined approach to the execution of our strategy and I believe this positions us well to continue the growth of our Company as the Midwest economy improves."
Second Quarter Results
- Net revenue was $122.8 million, operating profit was $47.1 million, and net interest margin was 3.36 percent for the quarter. These results were primarily driven by the lower rate environment, a decline in loan balances, and increased costs related to workout activities.
- Total loans at June 30, 2011, were $8.7 billion, down 4 percent from the prior quarter. Commercial and industrial loans comprise 57 percent of the loan portfolio compared to 49 percent a year ago and commercial real estate and construction loans comprise 34 percent compared to 43 percent a year ago, as the Company continues to reposition the loan portfolio. Commercial and industrial loans have increased $627.0 million from a year ago.
- Non-performing loans declined 7 percent and special mention and potential problem loans decreased 22 percent from March 31, 2011. These improvements in asset quality drove a reduction in the allowance for loan losses resulting in a 14 percent decline in loan loss provision.
- Non-performing assets at quarter-end were up slightly from last quarter to $454.4 million. Disposition activity for the quarter included $121.5 million in problem loans and $14.0 million in other real estate owned (OREO).
Operating Performance
Net revenue declined to $122.8 million in the second quarter 2011, from $124.2 million in the second quarter 2010 and $127.0 million in the first quarter 2011. Operating profit was $47.1 million in the second quarter 2011, compared to $48.2 million in the second quarter 2010 and $51.6 million in the first quarter 2011. While overall expenses were flat, both net interest income and non-interest income were negatively impacted by the lower rate environment and declining loan balances.
Net interest income was $100.5 million for the second quarter 2011, down from $103.3 million for the second quarter 2010 and $102.6 million in the first quarter 2011. The impact of covered asset accretion on net interest income was $854,000 for the second quarter 2011, compared to $8.6 million in the second quarter 2010 and $1.4 million in the first quarter 2011. Net interest margin was 3.36 percent for the second quarter 2011, compared to 3.39 percent in the second quarter 2010 and 3.46 percent in the first quarter 2011. Excluding covered asset accretion, the net interest margin was 3.33 percent for the second quarter 2011, compared to 3.11 percent in the second quarter 2010 and 3.41 percent in the first quarter 2011.
Non-interest income was $21.6 million in the second quarter 2011, compared to $20.0 million in the second quarter 2010 and $23.6 million in the first quarter 2011. Treasury management income was up 14 percent from the second quarter 2010 and 3 percent from the first quarter 2011, reflecting continued success in cross-selling this service to new and existing clients. Trust and investment fee income decreased 2 percent from second quarter 2010 and was up 1 percent compared to the first quarter 2011. Capital markets revenue, including the credit valuation adjustment, was $3.9 million in the second quarter, down from $4.1 million in the second quarter 2010 and $4.5 million in the first quarter 2011. The credit valuation adjustment was a negative $573,000 in the second quarter 2011, compared to a negative $1.3 million adjustment in the second quarter 2010 and a positive $817,000 adjustment in the first quarter 2011.
The prevailing market conditions in the mortgage industry led mortgage banking income to decrease to $704,000 for the second quarter 2011, compared to $1.8 million for the second quarter 2010 and $1.4 million for the first quarter 2011.
Expenses
Non-interest expense was $75.7 million in the second quarter 2011, compared to $76.0 million in the second quarter 2010 and $75.3 million in the first quarter 2011. The Company continued to manage expenses but credit costs negatively impacted total expenses as loan resolution efforts moved forward. Increased disposition activity and writedowns taken on OREO property during the quarter drove an increase in loan and collection costs and net foreclosed property expenses. Insurance costs declined $2.2 million from the first quarter 2011. The change in FDIC assessment methodology took effect at the beginning of the second quarter.
The efficiency ratio was 61.6 percent in the second quarter 2011, compared to 61.2 percent in the second quarter 2010 and 59.3 percent in the first quarter 2011.
Credit Quality
During the quarter, the Company made meaningful progress in reducing exposure to problem assets with loan and OREO dispositions of $121.5 million and $14.0 million, respectively. Our execution against net carrying values was strong. These dispositions were achieved at a net incremental charge of 8 percent. The amount of downgrades into special mention and potential problem loans continued to trend lower again this quarter and, together with our loan disposition efforts, are expected to result in further asset quality improvement in the second half of 2011. The non-performing loan inflows of $110.4 million were mostly composed of previously identified potential problem loans moving through the workout process to nonaccrual. The Company is actively moving problem loans through to resolution, resulting in higher OREO at June 30, 2011.
The second quarter 2011 provision for loan losses was $31.7 million, excluding covered loan provision, compared to $45.4 million in the second quarter 2010 and $36.7 million in the first quarter 2011. At June 30, 2011, the allowance for loan losses was $206.3 million, or 2.38 percent of total loans, compared to $232.4 million, or 2.63 percent of total loans, at June 30, 2010, and $218.2 million, or 2.41 percent of total loans, at March 31, 2011. The allowance for loan losses as a percentage of non-performing loans was 62 percent at June 30, 2011, compared to 63 percent at June 30, 2010, and 61 percent at March 31, 2011.
Net charge-offs were $43.7 million for the quarter ended June 30, 2011, compared to $49.8 million for the second quarter 2010 and $41.3 million for the first quarter 2011. Net charge-offs were higher this quarter as a result of the increased loan sale activity.
Non-performing assets totaled $454.4 million at June 30, 2011, compared to $438.9 million at June 30, 2010, and $450.7 million at March 31, 2011. Non-performing assets to total assets were 3.75 percent at June 30, 2011, compared to 3.48 percent at June 30, 2010, and 3.61 percent at March 31, 2011. Non-performing loans were $330.4 million at quarter-end, down from $370.2 million at the end of second quarter 2010, and $356.9 million at the end of the first quarter 2011. OREO totaled $124.0 million at June 30, 2011, an increase from $68.7 million at June 30, 2010, and $93.8 million at March 31, 2011.
Restructured loans accruing interest were $124.6 million at the end of second quarter 2011, compared to $4.0 million at the end of the second quarter 2010 and $100.9 million at the end of first quarter 2011. The Company continues to utilize loan restructuring as a way to maximize economic recovery.
Credit quality results exclude $346.5 million in covered assets as of the end of the second quarter, referring to certain assets acquired through an FDIC-assisted transaction that are subject to a loss-sharing agreement, compared to $434.8 million in the second quarter 2010 and $364.4 million in the first quarter 2011.
Balance Sheet
The Company continued to focus on its commercial middle market expertise and value-driven relationships to reshape the loan portfolio composition. Commercial and industrial loans comprised 57 percent of the total portfolio at June 30, 2011, compared to 49 percent a year ago. Total loans decreased to $8.7 billion at quarter-end, compared to $8.9 billion at June 30, 2010 and $9.0 billion at March 31, 2011. During the quarter, the Company improved the overall risk profile of the loan portfolio. The 4 percent decline in loans during the quarter was driven by lower demand, disposition of problem loans, and the Company's disciplined approach to optimize capital allocation and exit relationships that were inconsistent with its strategy.
Total assets were $12.1 billion at June 30, 2011, compared to $12.6 billion at June 30, 2010, and $12.5 billion at March 31, 2011. Total deposits were $10.2 billion at June 30, 2011, compared to $10.6 billion at June 30, 2010, and $10.6 billion at March 31, 2011. Client deposits were $9.8 billion at the end of the second quarter 2011, compared to $10.3 billion at the end of second quarter 2010, and $10.0 billion at March 31, 2011. Non-interest bearing deposits at June 30, 2011 were 25 percent of total deposits, an increase from 20 percent a year ago.
The Company's investment securities portfolio was $2.1 billion at June 30, 2011, compared to $2.1 billion at June 30, 2010, and $1.9 billion at March 31, 2011. Net unrealized gains were $52.7 million, compared to $77.0 million at the end of the second quarter 2010 and $30.5 million at the end of the first quarter 2011. The securities portfolio is primarily composed of U.S. government agency backed mortgage pools, agency collateralized mortgage obligations, and investment grade municipal bonds.
Capital
As of June 30, 2011, the Company's total risk-based capital ratio was 15.12 percent, the Tier 1 risk-based capital ratio was 12.95 percent, and the leverage ratio was 11.00 percent. Tier 1 common capital ratio was 8.34 percent and tangible common equity ratio was 7.58 percent at the end of the second quarter 2011.
Quarterly Conference Call and Webcast Presentation
PrivateBancorp will host a conference call on Tuesday, July 26, 2011, 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 #78029386. A live webcast of the call can be accessed on the Company website at www.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 July 28, 2011, by calling (800) 642-1687 (U.S. and Canada) or (706) 645-9291 (International) and entering passcode #78029386.
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 June 30, 2011, the Company had 34 offices in 10 states and $12.1 billion in assets. The Company website is www.theprivatebank.com.
Forward-Looking Statements
Statements contained 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, but are not limited to: unforeseen credit quality problems or further deterioration in asset quality that could result in charge-offs greater than we have anticipated in our allowance for loan losses; adverse developments impacting one or more large credits; the extent of further deterioration in real estate values in our market areas, particularly in the Chicago area; difficulties in resolving problem credits or slower than anticipated dispositions of OREO which may result in increased losses or higher credit costs; slower than anticipated economic recovery or changes in economic outlook or market conditions that may affect demand for loans or other banking products and services; weakness in the commercial and industrial sector; unanticipated withdrawals of significant client deposits; lack of sufficient or cost-effective sources of liquidity or funding; the terms and availability of capital when and to the extent necessary or required to repay TARP or otherwise; loss of key personnel or an inability to recruit and retain appropriate talent; potential for significant charges if our deferred tax or goodwill assets suffer impairment; unanticipated changes in interest rates or significant tightening of credit spreads; competitive pricing pressures; uncertainty regarding implications of the Dodd-Frank Act and the rules and regulations to be adopted in connection with implementation of the legislation, including evolving regulatory capital standards; other legislative, regulatory or accounting changes affecting financial services companies and/or the products and services offered by financial services companies; uncertainties related to potential costs associated with pending litigation; or failures or disruptions to our data processing or other information or operational systems. These factors should be considered in evaluating forward-looking statements and undue reliance should not be placed on our forward-looking statements. Forward-looking statements speak only as of the date they are made, and the Company assumes no obligation to update publicly any of these statements in light of future events unless required under the federal securities laws.
Non-GAAP Measures
This press release contains both financial measures based on accounting principles generally accepted in the United States (GAAP) and non-GAAP based financial measures. The Company believes that these non-GAAP financial measures provide information useful to investors in understanding the underlying operational performance of the Company, its business, and performance trends and facilitates comparisons with the performance of others in the banking industry. If non-GAAP financial measures are used, the comparable GAAP financial measure, as well as the reconcilement to the comparable 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 GAAP, nor are they necessarily comparable to non-GAAP performance measures that may be presented by other companies.
Consolidated Income Statements |
|||||
Unaudited |
|||||
(Amounts in thousands except per share data) |
|||||
Three Months Ended |
Six Months Ended |
||||
June 30, |
June 30, |
||||
2011 |
2010 |
2011 |
2010 |
||
Interest Income |
|||||
Loans, including fees |
$ 102,391 |
$ 112,839 |
$ 208,038 |
$ 223,901 |
|
Federal funds sold and other short-term investments |
399 |
664 |
735 |
1,208 |
|
Securities: |
|||||
Taxable |
15,568 |
16,417 |
30,958 |
31,867 |
|
Exempt from Federal income taxes |
1,387 |
1,752 |
2,873 |
3,470 |
|
Total interest income |
119,745 |
131,672 |
242,604 |
260,446 |
|
Interest Expense |
|||||
Interest-bearing demand deposits |
587 |
805 |
1,229 |
1,771 |
|
Savings deposits and money market accounts |
6,082 |
9,368 |
12,744 |
18,482 |
|
Brokered and time deposits |
6,528 |
9,537 |
13,220 |
20,961 |
|
Short-term borrowings |
566 |
1,383 |
1,393 |
2,829 |
|
Long-term debt |
5,479 |
7,247 |
10,962 |
14,752 |
|
Total interest expense |
19,242 |
28,340 |
39,548 |
58,795 |
|
Net interest income |
100,503 |
103,332 |
203,056 |
201,651 |
|
Provision for loan and covered loan losses |
31,093 |
45,392 |
68,671 |
117,940 |
|
Net interest income after provision for |
|||||
loan and covered loan losses |
69,410 |
57,940 |
134,385 |
83,711 |
|
Non-interest Income |
|||||
Trust and investments |
4,720 |
4,836 |
9,382 |
9,260 |
|
Mortgage banking |
704 |
1,797 |
2,106 |
3,918 |
|
Capital markets products |
3,871 |
4,113 |
8,360 |
4,391 |
|
Treasury management |
4,873 |
4,281 |
9,624 |
7,889 |
|
Loan and credit-related fees |
5,290 |
4,128 |
11,188 |
7,581 |
|
Other income, service charges, and fees |
1,464 |
983 |
3,522 |
2,138 |
|
Net securities gains (losses) |
670 |
(185) |
1,037 |
(156) |
|
Total non-interest income |
21,592 |
19,953 |
45,219 |
35,021 |
|
Non-interest Expense |
|||||
Salaries and employee benefits |
38,636 |
37,485 |
77,193 |
76,874 |
|
Net occupancy expense |
7,545 |
7,747 |
15,077 |
15,042 |
|
Technology and related costs |
2,729 |
2,424 |
5,390 |
5,467 |
|
Marketing |
2,500 |
2,363 |
4,443 |
4,465 |
|
Professional services |
2,312 |
3,000 |
4,646 |
7,203 |
|
Outsourced servicing costs |
1,852 |
2,298 |
4,006 |
3,819 |
|
Net foreclosed property expenses |
7,485 |
3,686 |
13,791 |
5,089 |
|
Postage, telephone, and delivery |
931 |
866 |
1,819 |
1,831 |
|
Insurance |
5,092 |
5,654 |
12,432 |
11,073 |
|
Loan and collection expense |
4,247 |
4,610 |
6,800 |
7,189 |
|
Other expenses |
2,335 |
5,869 |
5,416 |
11,321 |
|
Total non-interest expense |
75,664 |
76,002 |
151,013 |
149,373 |
|
Income (loss) before income taxes |
15,338 |
1,891 |
28,591 |
(30,641) |
|
Income tax provision (benefit) |
6,320 |
(766) |
8,599 |
(12,442) |
|
Net income (loss) |
9,018 |
2,657 |
19,992 |
(18,199) |
|
Net income (loss) attributable to noncontrolling interests |
58 |
76 |
130 |
146 |
|
Net income (loss) attributable to controlling interests |
8,960 |
2,581 |
19,862 |
(18,345) |
|
Preferred stock dividends and discount accretion |
3,419 |
3,399 |
6,834 |
6,793 |
|
Net income (loss) available to common stockholders |
$ 5,541 |
$ (818) |
$ 13,028 |
$ (25,138) |
|
Per Common Share Data |
|||||
Basic |
$ 0.08 |
$ (0.01) |
$ 0.18 |
$ (0.36) |
|
Diluted |
$ 0.08 |
$ (0.01) |
$ 0.18 |
$ (0.36) |
|
Common dividends per share |
$ 0.01 |
$ 0.01 |
$ 0.02 |
$ 0.02 |
|
Weighted-average shares outstanding |
70,428 |
69,995 |
70,388 |
69,964 |
|
Weighted-average diluted shares outstanding |
70,474 |
69,995 |
70,436 |
69,964 |
|
Note 1: Due to the net loss available to common stockholders reported for the three months and six months ended June 30, 2010, all potentially dilutive common stock equivalents were excluded from the diluted net loss per share computation as their inclusion would have been antidilutive. |
|
Note 2: Certain reclassifications have been made to prior period financial statements to place them on a basis comparable with the current period financial statements. |
|
Quarterly Consolidated Income Statements |
||||||
Unaudited |
||||||
(Amounts in thousands except per share data) |
||||||
2Q11 |
1Q11 |
4Q10 |
3Q10 |
2Q10 |
||
Interest Income |
||||||
Loans, including fees |
$ 102,391 |
$ 105,647 |
$ 105,375 |
$ 105,608 |
$ 112,839 |
|
Federal funds sold and other short-term investments |
399 |
336 |
366 |
376 |
664 |
|
Securities: |
||||||
Taxable |
15,568 |
15,390 |
15,453 |
16,996 |
16,417 |
|
Exempt from Federal income taxes |
1,387 |
1,486 |
1,644 |
1,661 |
1,752 |
|
Total interest income |
119,745 |
122,859 |
122,838 |
124,641 |
131,672 |
|
Interest Expense |
||||||
Interest-bearing demand deposits |
587 |
642 |
702 |
675 |
805 |
|
Savings deposits and money market accounts |
6,082 |
6,662 |
7,437 |
8,512 |
9,368 |
|
Brokered and time deposits |
6,528 |
6,692 |
7,367 |
8,130 |
9,537 |
|
Short-term borrowings |
566 |
827 |
962 |
1,297 |
1,383 |
|
Long-term debt |
5,479 |
5,483 |
6,023 |
7,068 |
7,247 |
|
Total interest expense |
19,242 |
20,306 |
22,491 |
25,682 |
28,340 |
|
Net interest income |
100,503 |
102,553 |
100,347 |
98,959 |
103,332 |
|
Provision for loan and covered loan losses |
31,093 |
37,578 |
35,166 |
41,435 |
45,392 |
|
Net interest income after provision for |
||||||
loan and covered loan losses |
69,410 |
64,975 |
65,181 |
57,524 |
57,940 |
|
Non-interest Income |
||||||
Trust and investments |
4,720 |
4,662 |
4,574 |
4,306 |
4,836 |
|
Mortgage banking |
704 |
1,402 |
3,479 |
2,790 |
1,797 |
|
Capital markets products |
3,871 |
4,489 |
6,791 |
3,104 |
4,113 |
|
Treasury management |
4,873 |
4,751 |
4,625 |
4,406 |
4,281 |
|
Loan and credit-related fees |
5,290 |
5,898 |
4,710 |
4,234 |
4,128 |
|
Other income, service charges, and fees |
1,464 |
2,058 |
1,377 |
1,491 |
983 |
|
Net securities gains (losses) |
670 |
367 |
9,309 |
3,029 |
(185) |
|
Total non-interest income |
21,592 |
23,627 |
34,865 |
23,360 |
19,953 |
|
Non-interest Expense |
||||||
Salaries and employee benefits |
38,636 |
38,557 |
38,577 |
34,412 |
37,485 |
|
Net occupancy expense |
7,545 |
7,532 |
7,385 |
7,508 |
7,747 |
|
Technology and related costs |
2,729 |
2,661 |
2,447 |
2,310 |
2,424 |
|
Marketing |
2,500 |
1,943 |
1,997 |
2,039 |
2,363 |
|
Professional services |
2,312 |
2,334 |
3,020 |
2,708 |
3,000 |
|
Outsourced servicing costs |
1,852 |
2,154 |
1,950 |
2,038 |
2,298 |
|
Net foreclosed property expenses |
7,485 |
6,306 |
7,028 |
3,075 |
3,686 |
|
Postage, telephone, and delivery |
931 |
888 |
1,049 |
779 |
866 |
|
Insurance |
5,092 |
7,340 |
8,348 |
7,113 |
5,654 |
|
Loan and collection expense |
4,247 |
2,553 |
4,029 |
3,405 |
4,610 |
|
Other expenses |
2,335 |
3,081 |
6,318 |
2,690 |
5,869 |
|
Total non-interest expense |
75,664 |
75,349 |
82,148 |
68,077 |
76,002 |
|
Income (loss) before income taxes |
15,338 |
13,253 |
17,898 |
12,807 |
1,891 |
|
Income tax provision (benefit) |
6,320 |
2,279 |
5,919 |
4,786 |
(766) |
|
Net income (loss) |
9,018 |
10,974 |
11,979 |
8,021 |
2,657 |
|
Net income (loss) attributable to noncontrolling interests |
58 |
72 |
67 |
71 |
76 |
|
Net income (loss) attributable to controlling interests |
8,960 |
10,902 |
11,912 |
7,950 |
2,581 |
|
Preferred stock dividends and discount accretion |
3,419 |
3,415 |
3,409 |
3,405 |
3,399 |
|
Net income (loss) available to common stockholders |
$ 5,541 |
$ 7,487 |
$ 8,503 |
$ 4,545 |
$ (818) |
|
Per Common Share Data |
||||||
Basic |
$ 0.08 |
$ 0.10 |
$ 0.12 |
$ 0.06 |
$ (0.01) |
|
Diluted |
$ 0.08 |
$ 0.10 |
$ 0.12 |
$ 0.06 |
$ (0.01) |
|
Common dividends per share |
$ 0.01 |
$ 0.01 |
$ 0.01 |
$ 0.01 |
$ 0.01 |
|
Weighted-average shares outstanding |
70,428 |
70,347 |
70,098 |
70,067 |
69,995 |
|
Weighted-average diluted shares outstanding |
70,474 |
70,396 |
70,135 |
70,097 |
69,995 |
|
Note 1: Due to the net loss available to common stockholders reported for the second quarter 2010, all potentially dilutive common stock equivalents were excluded from the diluted net loss per share computation as their inclusion would have been antidilutive. |
|
Consolidated Balance Sheets |
||||||
(Dollars in thousands) |
||||||
06/30/11 |
03/31/11 |
12/31/10 |
09/30/10 |
06/30/10 |
||
unaudited |
unaudited |
audited |
unaudited |
unaudited |
||
Assets |
||||||
Cash and due from banks |
$ 160,289 |
$ 181,738 |
$ 112,772 |
$ 144,298 |
$ 111,997 |
|
Fed funds sold and other short-term investments |
457,422 |
621,206 |
541,316 |
532,637 |
769,803 |
|
Loans held for sale |
13,503 |
22,611 |
30,758 |
44,271 |
20,762 |
|
Securities available-for-sale, at fair value |
2,057,290 |
1,892,304 |
1,881,786 |
2,033,527 |
2,029,962 |
|
Non-marketable equity investments |
20,406 |
23,490 |
23,537 |
25,587 |
33,825 |
|
Loans - excluding covered assets, net of unearned fees |
8,672,642 |
9,037,067 |
9,114,357 |
8,992,129 |
8,851,439 |
|
Allowance for loan losses |
(206,286) |
(218,237) |
(222,821) |
(223,392) |
(232,411) |
|
Loans, net of allowance for loan losses and unearned fees |
8,466,356 |
8,818,830 |
8,891,536 |
8,768,737 |
8,619,028 |
|
Covered assets |
346,452 |
364,372 |
397,210 |
419,865 |
434,828 |
|
Allowance for covered loan losses |
(16,904) |
(19,738) |
(15,334) |
(12,174) |
(5,176) |
|
Covered assets, net of allowance for covered loan losses |
329,548 |
344,634 |
381,876 |
407,691 |
429,652 |
|
Other real estate owned |
123,997 |
93,770 |
88,728 |
90,944 |
68,693 |
|
Premises, furniture, and equipment, net |
38,171 |
39,019 |
40,975 |
42,347 |
40,599 |
|
Accrued interest receivable |
32,128 |
33,960 |
33,854 |
34,697 |
35,278 |
|
Investment in bank owned life insurance |
50,183 |
49,799 |
49,408 |
48,950 |
48,521 |
|
Goodwill |
94,596 |
94,609 |
94,621 |
94,633 |
94,646 |
|
Other intangible assets |
16,089 |
16,464 |
16,840 |
17,242 |
17,655 |
|
Derivative assets |
93,453 |
87,273 |
100,250 |
128,891 |
113,493 |
|
Other assets |
161,946 |
177,735 |
177,364 |
169,513 |
177,126 |
|
Total assets |
$ 12,115,377 |
$ 12,497,442 |
$ 12,465,621 |
$ 12,583,965 |
$ 12,611,040 |
|
Liabilities |
||||||
Demand deposits: |
||||||
Non-interest-bearing |
$ 2,527,230 |
$ 2,438,709 |
$ 2,253,661 |
$ 2,173,419 |
$ 2,090,222 |
|
Interest-bearing |
531,107 |
540,215 |
616,761 |
614,049 |
738,631 |
|
Savings deposits and money market accounts |
4,497,297 |
4,831,253 |
4,821,823 |
5,039,970 |
5,066,653 |
|
Brokered deposits |
1,342,422 |
1,467,196 |
1,450,827 |
1,241,366 |
1,236,589 |
|
Time deposits |
1,336,212 |
1,348,603 |
1,392,357 |
1,461,668 |
1,437,204 |
|
Total deposits |
10,234,268 |
10,625,976 |
10,535,429 |
10,530,472 |
10,569,299 |
|
Short-term borrowings |
63,311 |
88,468 |
118,561 |
179,651 |
164,069 |
|
Long-term debt |
409,793 |
409,793 |
414,793 |
439,566 |
473,720 |
|
Accrued interest payable |
5,767 |
5,529 |
5,968 |
7,603 |
7,727 |
|
Derivative liabilities |
95,043 |
88,351 |
102,018 |
132,594 |
116,599 |
|
Other liabilities |
46,547 |
41,193 |
60,942 |
48,940 |
43,534 |
|
Total liabilities |
10,854,729 |
11,259,310 |
11,237,711 |
11,338,826 |
11,374,948 |
|
Equity |
||||||
Preferred stock |
239,642 |
239,270 |
238,903 |
238,542 |
238,185 |
|
Common stock |
71,155 |
71,036 |
70,972 |
70,657 |
70,630 |
|
Treasury stock |
(20,615) |
(20,312) |
(20,054) |
(19,023) |
(19,003) |
|
Additional paid-in capital |
963,156 |
959,135 |
954,977 |
950,721 |
946,981 |
|
Accumulated deficit |
(25,388) |
(30,223) |
(36,999) |
(44,784) |
(48,638) |
|
Accumulated other comprehensive income, net of tax |
32,535 |
19,121 |
20,078 |
48,776 |
47,758 |
|
Total stockholders' equity |
1,260,485 |
1,238,027 |
1,227,877 |
1,244,889 |
1,235,913 |
|
Noncontrolling interests |
163 |
105 |
33 |
250 |
179 |
|
Total equity |
1,260,648 |
1,238,132 |
1,227,910 |
1,245,139 |
1,236,092 |
|
Total liabilities and equity |
$ 12,115,377 |
$ 12,497,442 |
$ 12,465,621 |
$ 12,583,965 |
$ 12,611,040 |
|
Selected Financial Data |
||||||||||||
Unaudited |
||||||||||||
(Amounts in thousands except per share data) |
||||||||||||
2Q11 |
1Q11 |
4Q10 |
3Q10 |
2Q10 |
||||||||
Selected Statement of Income Data: |
||||||||||||
Net interest income |
$ 100,503 |
$ 102,553 |
$ 100,347 |
$ 98,959 |
$ 103,332 |
|||||||
Net revenue (1) (2) |
$ 122,811 |
$ 126,970 |
$ 136,088 |
$ 123,210 |
$ 124,209 |
|||||||
Operating profit (1) (2) |
$ 47,147 |
$ 51,621 |
$ 53,940 |
$ 55,133 |
$ 48,207 |
|||||||
Provision for loan and covered loan losses |
$ 31,093 |
$ 37,578 |
$ 35,166 |
$ 41,435 |
$ 45,392 |
|||||||
Income (loss) before taxes |
$ 15,338 |
$ 13,253 |
$ 17,898 |
$ 12,807 |
$ 1,891 |
|||||||
Net income (loss) available to common stockholders |
$ 5,541 |
$ 7,487 |
$ 8,503 |
$ 4,545 |
$ (818) |
|||||||
Per Common Share Data: |
||||||||||||
Basic earnings (loss) per share |
$ 0.08 |
$ 0.10 |
$ 0.12 |
$ 0.06 |
$ (0.01) |
|||||||
Diluted earnings (loss) per share (3) |
$ 0.08 |
$ 0.10 |
$ 0.12 |
$ 0.06 |
$ (0.01) |
|||||||
Dividends |
$ 0.01 |
$ 0.01 |
$ 0.01 |
$ 0.01 |
$ 0.01 |
|||||||
Book value (period end) (1) |
$ 14.22 |
$ 13.98 |
$ 13.87 |
$ 14.10 |
$ 13.98 |
|||||||
Tangible book value (period end) (1) (2) |
$ 12.68 |
$ 12.43 |
$ 12.30 |
$ 12.53 |
$ 12.40 |
|||||||
Market value (close) |
$ 13.80 |
$ 15.29 |
$ 14.38 |
$ 11.39 |
$ 11.08 |
|||||||
Book value multiple |
0.97 |
x |
1.09 |
x |
1.04 |
x |
0.81 |
x |
0.79 |
x |
||
Share Data: |
||||||||||||
Weighted average common shares outstanding |
70,428 |
70,347 |
70,098 |
70,067 |
69,995 |
|||||||
Diluted average common shares outstanding (3) |
70,474 |
70,396 |
70,135 |
70,097 |
69,995 |
|||||||
Common shares issued (at period end) |
72,497 |
72,096 |
71,979 |
71,964 |
71,978 |
|||||||
Common shares outstanding (at period end) |
71,808 |
71,428 |
71,327 |
71,386 |
71,403 |
|||||||
Performance Ratios: |
||||||||||||
Return on average assets |
0.29% |
0.35% |
0.38% |
0.25% |
0.08% |
|||||||
Return on average common equity |
2.18% |
3.03% |
3.31% |
1.77% |
-0.33% |
|||||||
Net interest margin (1) (2) |
3.36% |
3.46% |
3.33% |
3.28% |
3.39% |
|||||||
Covered asset accretion contribution to net interest margin |
0.03% |
0.05% |
0.05% |
0.03% |
0.28% |
|||||||
Net interest margin, excluding impact of covered asset accretion |
3.33% |
3.41% |
3.28% |
3.25% |
3.11% |
|||||||
Fee revenue as a percent of total revenue (1) |
17.23% |
18.49% |
20.30% |
17.04% |
16.31% |
|||||||
Non-interest income to average assets |
0.69% |
0.77% |
1.11% |
0.74% |
0.63% |
|||||||
Non-interest expense to average assets |
2.43% |
2.44% |
2.61% |
2.16% |
2.39% |
|||||||
Net overhead ratio (1) |
1.74% |
1.68% |
1.50% |
1.42% |
1.76% |
|||||||
Efficiency ratio (1) (2) |
61.61% |
59.34% |
60.36% |
55.25% |
61.19% |
|||||||
Selected Information: |
||||||||||||
Assets under management and administration (1) |
$ 4,395,516 |
$ 4,313,843 |
$ 4,271,602 |
$ 4,023,821 |
$ 3,746,934 |
|||||||
Credit valuation adjustment (1) |
$ (573) |
$ 817 |
$ 1,826 |
$ (830) |
$ (1,271) |
|||||||
Balance Sheet Ratios: |
||||||||||||
Loans to Deposits (period end) (4) |
84.74% |
85.05% |
86.51% |
85.39% |
83.75% |
|||||||
Average interest-earning assets to average interest-bearing liabilities |
139.77% |
134.88% |
134.76% |
133.96% |
130.58% |
|||||||
Capital Ratios (period end): |
||||||||||||
Total risk-based capital (1) |
15.12% |
14.55% |
14.18% |
14.40% |
14.83% |
|||||||
Tier 1 risk-based capital (1) |
12.95% |
12.41% |
12.06% |
12.25% |
12.43% |
|||||||
Leverage (1) |
11.00% |
10.91% |
10.78% |
10.71% |
10.39% |
|||||||
Tier 1 common capital (1) (2) |
8.34% |
7.97% |
7.69% |
7.79% |
7.86% |
|||||||
Tangible common equity to tangible assets (1) (2) |
7.58% |
7.17% |
7.10% |
7.17% |
7.09% |
|||||||
Total equity to total assets |
10.41% |
9.91% |
9.85% |
9.89% |
9.80% |
|||||||
(1) Refer to Glossary of Terms for definition. |
|
(2) This is a non-U.S. GAAP measure, refer to Non-U.S. GAAP Measures for a reconciliation from non-U.S. GAAP to U.S. GAAP. |
|
(3) For the second quarter 2010, diluted shares are equal to basic shares due to the net loss. The calculation of diluted earnings per share for that period results in anti-dilution. |
|
(4) Excludes covered assets. Refer to Glossary of Terms for definition. |
|
SOURCE PrivateBancorp, Inc.
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