PrivateBancorp Reports Second Quarter 2014 Earnings

Earnings per share of $0.52 for second quarter 2014, up 41 percent from second quarter 2013 and 18 percent from first quarter 2014

Jul 17, 2014, 07:30 ET from PrivateBancorp, Inc.

CHICAGO, July 17, 2014 /PRNewswire/ -- PrivateBancorp, Inc. (NASDAQ: PVTB) today reported net income of $40.8 million, or $0.52 per diluted share, for the second quarter 2014, compared to $28.9 million, or $0.37 per diluted share, for the second quarter 2013 and $34.5 million, or $0.44 per diluted share, for the first quarter 2014. For the six months ended June 30, 2014, the Company had net income of $75.3 million, or $0.96 per diluted share, compared to $56.2 million, or $0.72 per diluted share, for the six months ended June 30, 2013.

"Our second quarter results reflect the benefit of our consistent focus on developing client relationships as higher net interest income and strong fee income led to net income of $40.8 million, a 41 percent increase over last year," said Larry D. Richman, President and CEO, PrivateBancorp, Inc. "Total loans increased 10 percent year-over-year, with about $365 million in fundings to new clients in the second quarter. Operating profit was up 21 percent from a year ago on higher revenue driven by loan growth and lower credit costs.

"With a strong first half of the year behind us, I am pleased with our success in adding new clients and expanding our relationships with existing clients," Richman continued. "Client sentiment continues to improve, and I like how we are positioned for the rest of the year to do more with commercial middle market companies as they grow their own businesses."

Second Quarter 2014 Highlights

  • Return on average common equity improved to 11.9 percent and return on average assets improved to 1.14 percent for the second quarter 2014.
  • Operating profit increased to $67.9 million, up 21 percent from the second quarter 2013 and 13 percent from the first quarter 2014. Higher revenues from continued growth in earning assets and increased fee revenue drove the improvement in the efficiency ratio to 52.6 percent for the second quarter 2014, from 57.9 percent for the second quarter 2013 and 55.8 percent for the first quarter 2014.
  • Total loans increased to $11.1 billion, up 10 percent from a year ago and 2 percent from March 31, 2014, primarily driven by growth in commercial and industrial loans. Average loans grew $932.6 million from the second quarter 2013 and $335.7 million from the first quarter 2014.
  • Total deposits grew to $12.2 billion, compared to $11.3 billion as of June 30, 2013, and $11.9 billion as of March 31, 2014. Noninterest-bearing demand deposits increased $283.7 million during the quarter.
  • Net interest margin was 3.21 percent, compared to 3.22 percent for the second quarter 2013 and 3.23 percent for the first quarter 2014.
  • Provision for loan and covered loan losses was $327,000, as a $2.0 million provision for loan losses was offset by $1.7 million of covered loan recoveries recorded during the second quarter 2014.

Operating Performance

Net interest income was $112.4 million in the second quarter 2014, an increase of 8 percent compared to the second quarter 2013, and up 3 percent compared to the first quarter 2014. Compared to the previous periods, interest income benefited from higher average loans as loan yields continued to decline. Average loans increased 9 percent from the second quarter 2013 and 3 percent from the first quarter 2014. Interest expense declined to $16.6 million from $17.9 million for the second quarter 2013, largely reflecting the prepayment of a subordinated debt facility in the fourth quarter 2013, while a $385.7 million increase in average noninterest-bearing demand deposits was also beneficial. Net interest margin was 3.21 percent in the second quarter 2014, compared to 3.23 percent in the first quarter 2014 and 3.22 percent in the second quarter 2013. Larger-than-average interest recoveries in the first quarter 2014 contributed three basis points to net interest margin. On a sequential basis, net interest margin benefited from higher loan fees; however, the competitive environment continued to pressure loan pricing.

Noninterest income was $30.3 million in the second quarter 2014, up $1.3 million compared to the second quarter 2013 and $4.0 million compared to the first quarter 2014, primarily due to higher syndication fees. Syndication fees were $5.4 million, up $2.3 million compared to the second quarter 2013 and $2.1 million compared to the first quarter 2014, driven by strong loan activity during the current quarter. Mortgage banking revenue was $2.6 million compared to $3.2 million for the second quarter 2013 and $1.6 million for the first quarter 2014, reflecting industry-wide mortgage origination trends.

Capital markets revenue of $5.0 million, down from $6.0 million for the second quarter 2013, increased from $4.1 million for the first quarter 2014. Excluding the impact of the credit valuation adjustment, capital markets revenue increased $1.1 million on a sequential basis, primarily related to a higher level of foreign exchange-related transactions. Treasury management fees were $6.7 million in the second quarter 2014, up 8 percent from the second quarter 2013, largely due to additional client relationships, and were relatively unchanged from the first quarter 2014.

Asset management revenue was $4.4 million in the second quarter 2014, compared to $4.8 million for the second quarter 2013 and $4.3 million for the first quarter 2014. The prior-year period included fees generated by the investment management subsidiary sold at year-end. Assets under management and administration were $6.4 billion as of June 30, 2014, compared to $5.4 billion a year ago and $6.0 billion at March 31, 2014.

Expenses

Noninterest expense of $75.5 million was $1.8 million lower than the second quarter 2013 and down slightly compared to the first quarter 2014.

Salary and employee benefits expense was relatively unchanged compared to the first quarter 2014, as first quarter's seasonally higher payroll taxes and benefits were offset by a full quarter's impact of annual salary adjustments, additional performance-based incentive compensation, and higher revenue-based compensation. Compared to the second quarter 2013, salary and employee benefits expense increased 11 percent due to the impact of annual salary adjustments during the first quarter, additional staff, and increased incentive compensation based on improved performance.

Marketing expense was up $1.2 million compared to the first quarter 2014, primarily driven by the launch of an advertising campaign in the second quarter. Net foreclosed property expense decreased 50 percent compared to the second quarter 2013, primarily reflecting reduced inventory of foreclosed property (OREO). While expected to trend lower going forward, compared to the first quarter 2014, net foreclosed property expense was relatively unchanged at $2.8 million.

Other expenses declined $4.0 million from the second quarter 2013 and $2.3 million from the first quarter 2014. The second quarter 2013 included one-time charges of $3.0 million related to restructuring costs and a charge on repurchased loans. During the second quarter 2014, other expense benefited from a change in unfunded commitments, as certain nonperforming assets with related commitments were reduced.

Credit Quality

Nonperforming assets were 0.66 percent of total assets at June 30, 2014, down from 1.33 percent at June 30, 2013, and 0.82 percent at March 31, 2014. At June 30, 2014, nonperforming loans were $76.6 million, down $45.2 million from June 30, 2013, and $17.2 million from March 31, 2014. OREO of $19.8 million at June 30, 2014, declined $37.3 million from June 30, 2013, and $3.7 million from March 31, 2014.

The allowance for loan losses as a percentage of total loans was 1.32 percent at June 30, 2014, compared to 1.34 percent at March 31, 2014. The provision for loan losses was $2.0 million for the second quarter 2014 compared to $3.4 million for the first quarter 2014. Charge-off levels remained low and provision expense benefited from the release of specific reserves previously established for problem credits resolved in the second quarter 2014. Specific reserves declined $4.3 million from the first quarter 2014. General allocated reserves increased on a sequential basis, reflecting loan growth and changes in the composition of the loan portfolio.

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 $14.6 billion at June 30, 2014, up compared to $13.5 billion at June 30, 2013, and $14.3 billion at March 31, 2014. Total loans of $11.1 billion grew $1.0 billion, or 10 percent, from June 30, 2013, and $212.0 million, or 2 percent, from the previous quarter end. Excluded from total loans at June 30, 2014, were $80.7 million of loans held-for-sale, composed of $60.4 million in commercial credits funded in the second quarter that are expected to be syndicated and mortgage loans to be sold in the third quarter. At June 30, 2014, total commercial loans comprised 68 percent of total loans, up from 66 percent a year ago, and total commercial real estate and construction loans comprised 26 percent of total loans, down slightly from 27 percent at June 30, 2013. The Company's investment securities portfolio was $2.6 billion at June 30, 2014, up 2 percent from June 30, 2013, and consistent with March 31, 2014.

Total liabilities were $13.2 billion at June 30, 2014, up compared to $12.2 billion at June 30, 2013, and $13.0 billion compared to March 31, 2014. Total deposits were $12.2 billion at June 30, 2014, an increase of $927.9 million, or 8 percent, from June 30, 2013, and $350.0 million, or 3 percent, from March 31, 2014. Noninterest bearing demand deposits comprised 28 percent of total deposits at June 30, 2014, up from 24 percent at June 30, 2013, and 26 percent at March 31, 2014. At June 30, 2014, the loan-to-deposit ratio was 91 percent, compared to 89 percent as of June 30, 2013, and 92 percent as of March 31, 2014.

Capital

As of June 30, 2014, the total risk-based capital ratio was 13.41 percent, the Tier 1 risk-based capital ratio was 11.24 percent, and the leverage ratio was 10.63 percent. The Tier 1 common capital ratio was 9.42 percent (excluding the effect of the final Basel III capital rules that go into effect January 2015) and the tangible common equity ratio was 8.94 percent at the end of the second quarter 2014.

Quarterly Conference Call and Webcast Presentation

PrivateBancorp will host a conference call Thursday, July 17, 2014, at 10 a.m. CDT. The call may be accessed by telephone at (888) 782-9127 (U.S. and Canada) or (706) 634-5643 (International) and entering passcode #57714115. A live webcast of the call can be accessed on the Company website at: investor.theprivatebank.com or 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 July 30, 2014, by calling (855) 859-2056 (U.S. and Canada) or (404) 537-3406 (International) and entering passcode #57714115.

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, 2014, the Company had 33 offices in 10 states and $14.6 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:

  • continued uncertainty regarding U.S. and global economic outlook that may impact market conditions or prolong weakness in 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;
  • unanticipated changes in interest rates;
  • competitive pressures in the financial services industry that may affect the pricing of the Company's loan and deposit products as well as its services;
  • 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;
  • 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;
  • greater than anticipated impact on costs, revenues and offered products and services associated with the implementation of other regulatory changes; 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 Annual Report on Form 10-K for the year ended December 31, 2013, 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 March 31, 2014, 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 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)

(Unaudited)

Quarter Ended June 30,

Six Months Ended June 30,

2014

2013

2014

2013

Interest Income

Loans, including fees

$

113,696

$

107,407

$

223,895

$

214,194

Federal funds sold and interest-bearing deposits in banks

139

112

281

320

Securities:

Taxable

13,625

12,519

26,880

25,341

Exempt from Federal income taxes

1,432

1,532

2,961

3,034

Other interest income

59

62

92

152

  Total interest income

128,951

121,632

254,109

243,041

Interest Expense

Interest-bearing demand deposits

842

1,034

1,784

2,149

Savings deposits and money market accounts

4,087

3,887

8,061

8,286

Time and brokered time deposits

5,034

4,956

9,840

10,085

Short-term and secured borrowings

141

410

337

528

Long-term debt

6,496

7,613

12,984

15,221

  Total interest expense

16,600

17,900

33,006

36,269

  Net interest income

112,351

103,732

221,103

206,772

Provision for loan and covered loan losses

327

8,843

4,034

19,200

  Net interest income after provision for loan and covered loan losses

112,024

94,889

217,069

187,572

Non-interest Income

Asset management

4,440

4,800

8,787

9,194

Mortgage banking

2,626

3,198

4,258

7,368

Capital markets products

5,006

6,048

9,089

11,087

Treasury management

6,676

6,209

13,275

12,133

Loan, letter of credit and commitment fees

4,806

4,282

9,440

8,359

Syndication fees

5,440

3,140

8,753

6,972

Deposit service charges and fees and other income

1,069

1,196

2,366

3,587

Net securities gains

196

136

527

777

  Total non-interest income

30,259

29,009

56,495

59,477

Non-interest Expense

Salaries and employee benefits

44,405

39,854

89,025

82,994

Net occupancy expense

7,728

7,387

15,504

14,921

Technology and related costs

3,205

3,476

6,488

6,940

Marketing

3,589

3,695

6,002

6,012

Professional services

2,905

1,782

5,664

3,681

Outsourced servicing costs

1,850

1,964

3,314

3,598

Net foreclosed property expenses

2,771

5,555

5,594

12,198

Postage, telephone, and delivery

927

981

1,752

1,824

Insurance

3,016

2,804

5,919

5,343

Loan and collection expense

1,573

2,280

2,629

5,057

Other expenses

3,496

7,477

9,324

13,650

  Total non-interest expense

75,465

77,255

151,215

156,218

Income before income taxes

66,818

46,643

122,349

90,831

Income tax provision

25,994

17,728

47,020

34,646

  Net income available to common stockholders

$

40,824

$

28,915

$

75,329

$

56,185

Per Common Share Data

  Basic earnings per share

$

0.52

$

0.37

$

0.97

$

0.72

  Diluted earnings per share

$

0.52

$

0.37

$

0.96

$

0.72

  Cash dividends declared

$

0.01

$

0.01

$

0.02

$

0.02

  Weighted-average common shares outstanding

77,062

76,415

76,869

76,280

  Weighted-average diluted common shares outstanding

77,806

76,581

77,612

76,393

 

 

Consolidated Income Statements

(Amounts in thousands, except per share data)

(Unaudited)

2Q14

1Q14

4Q13

3Q13

2Q13

Interest Income

Loans, including fees

$

113,696

$

110,199

$

110,723

$

108,912

$

107,407

Federal funds sold and interest-bearing deposits in banks

139

142

221

111

112

Securities:

Taxable

13,625

13,255

13,038

12,931

12,519

Exempt from Federal income taxes

1,432

1,529

1,604

1,562

1,532

Other interest income

59

33

34

61

62

  Total interest income

128,951

125,158

125,620

123,577

121,632

Interest Expense

Interest-bearing demand deposits

842

942

1,021

1,032

1,034

Savings deposits and money market accounts

4,087

3,974

4,169

3,895

3,887

Time and brokered time deposits

5,034

4,806

5,062

5,014

4,956

Short-term and secured borrowings

141

196

161

161

410

Long-term debt

6,496

6,488

6,751

7,640

7,613

  Total interest expense

16,600

16,406

17,164

17,742

17,900

  Net interest income

112,351

108,752

108,456

105,835

103,732

Provision for loan and covered loan losses

327

3,707

4,476

8,120

8,843

  Net interest income after provision for loan and covered loan losses

112,024

105,045

103,980

97,715

94,889

Non-interest Income

Asset management

4,440

4,347

4,613

4,570

4,800

Mortgage banking

2,626

1,632

1,858

2,946

3,198

Capital markets products

5,006

4,083

5,720

3,921

6,048

Treasury management

6,676

6,599

6,321

6,214

6,209

Loan, letter of credit and commitment fees

4,806

4,634

4,474

4,384

4,282

Syndication fees

5,440

3,313

2,153

4,322

3,140

Deposit service charges and fees and other income

1,069

1,297

1,322

1,298

1,196

Net securities gains

196

331

279

118

136

  Total non-interest income

30,259

26,236

26,740

27,773

29,009

Non-interest Expense

Salaries and employee benefits

44,405

44,620

42,575

41,360

39,854

Net occupancy expense

7,728

7,776

7,548

7,558

7,387

Technology and related costs

3,205

3,283

3,443

3,343

3,476

Marketing

3,589

2,413

3,592

2,986

3,695

Professional services

2,905

2,759

2,393

2,465

1,782

Outsourced servicing costs

1,850

1,464

1,612

1,607

1,964

Net foreclosed property expenses

2,771

2,823

3,600

4,396

5,555

Postage, telephone, and delivery

927

825

845

852

981

Insurance

3,016

2,903

2,934

2,590

2,804

Loan and collection expense

1,573

1,056

2,351

1,345

2,280

Other expenses

3,496

5,828

4,934

2,767

7,477

  Total non-interest expense

75,465

75,750

75,827

71,269

77,255

Income before income taxes

66,818

55,531

54,893

54,219

46,643

Income tax provision

25,994

21,026

21,187

21,161

17,728

  Net income available to common stockholders

$

40,824

$

34,505

$

33,706

$

33,058

$

28,915

Per Common Share Data

  Basic earnings per share

$

0.52

$

0.44

$

0.43

$

0.42

$

0.37

Diluted earnings per share

$

0.52

$

0.44

$

0.43

$

0.42

$

0.37

  Cash dividends declared

$

0.01

$

0.01

$

0.01

$

0.01

$

0.01

  Weighted-average common shares outstanding

77,062

76,675

76,533

76,494

76,415

  Weighted-average diluted common shares outstanding

77,806

77,417

76,967

76,819

76,581

 

 

Consolidated Balance Sheets

(Dollars in thousands)

6/30/14

3/31/14

12/31/13

9/30/13

6/30/13

(Unaudited)

(Unaudited)

(Audited)

(Unaudited)

(Unaudited)

Assets

Cash and due from banks

$

247,048

$

233,685

$

133,518

$

247,460

$

150,683

Federal funds sold and interest-bearing deposits in banks

160,349

117,446

306,544

180,608

147,699

Loans held-for-sale

80,724

26,262

26,816

27,644

34,803

Securities available-for-sale, at fair value

1,527,747

1,577,406

1,602,476

1,611,022

1,580,179

Securities held-to-maturity, at amortized cost

1,066,216

1,023,214

921,436

931,342

955,688

Federal Home Loan Bank ("FHLB") stock

28,666

30,005

30,005

34,063

34,063

Loans – excluding covered assets, net of unearned fees

11,136,942

10,924,985

10,644,021

10,409,443

10,094,636

Allowance for loan losses

(146,491)

(146,768)

(143,109)

(145,513)

(148,183)

Loans, net of allowance for loan losses and unearned fees

10,990,451

10,778,217

10,500,912

10,263,930

9,946,453

Covered assets

81,047

94,349

112,746

140,083

158,326

Allowance for covered loan losses

(14,375)

(16,571)

(16,511)

(21,653)

(24,995)

Covered assets, net of allowance for covered loan losses

66,672

77,778

96,235

118,430

133,331

Other real estate owned, excluding covered assets

19,823

23,565

28,548

35,310

57,134

Premises, furniture, and equipment, net

40,088

39,556

39,704

36,445

37,025

Accrued interest receivable

36,568

39,273

37,004

35,758

38,325

Investment in bank owned life insurance

54,500

54,184

53,865

53,539

53,216

Goodwill

94,041

94,041

94,041

94,484

94,496

Other intangible assets

7,381

8,136

8,892

10,486

11,266

Derivative assets

47,012

44,528

48,422

57,771

57,361

Other assets

135,118

137,486

157,328

130,848

144,771

  Total assets

$

14,602,404

$

14,304,782

$

14,085,746

$

13,869,140

$

13,476,493

Liabilities

Demand deposits:

Noninterest-bearing

$

3,387,424

$

3,103,736

$

3,172,676

$

3,106,986

$

2,736,868

Interest-bearing

1,230,681

1,466,095

1,470,856

1,183,471

1,234,134

Savings deposits and money market accounts

5,033,247

4,786,398

4,799,561

4,778,057

4,654,930

Time deposits

1,299,616

1,320,466

1,336,522

1,333,232

1,355,522

Brokered time deposits

1,285,233

1,209,466

1,234,026

1,430,810

1,326,878

  Total deposits

12,236,201

11,886,161

12,013,641

11,832,556

11,308,332

Short-term and secured borrowings

235,319

333,400

8,400

131,400

308,700

Long-term debt

626,793

627,793

627,793

499,793

499,793

Accrued interest payable

6,282

6,251

6,326

6,042

5,963

Derivative liabilities

35,402

40,522

48,890

55,933

62,014

Other liabilities

64,586

67,409

78,792

69,728

58,651

  Total liabilities

13,204,583

12,961,536

12,783,842

12,595,452

12,243,453

Equity

Common stock:

Voting

75,526

75,428

75,240

75,240

75,238

Nonvoting

1,585

1,585

1,585

1,585

1,585

Treasury stock

(945)

(1,697)

(6,415)

(7,303)

(9,001)

Additional paid-in capital

1,024,869

1,021,436

1,022,023

1,019,143

1,016,615

Retained earnings

273,380

233,347

199,627

166,700

134,423

Accumulated other comprehensive income, net of tax

23,406

13,147

9,844

18,323

14,180

  Total equity

1,397,821

1,343,246

1,301,904

1,273,688

1,233,040

  Total liabilities and equity

$

14,602,404

$

14,304,782

$

14,085,746

$

13,869,140

$

13,476,493

Note: Certain reclassifications have been made to prior period amounts to conform to the current period presentation.

 

 

Selected Financial Data

(Amounts in thousands, except per share data)

(Unaudited)

2Q14

1Q14

4Q13

3Q13

2Q13

Selected Statement of Income Data:

Net interest income

$

112,351

$

108,752

$

108,456

$

105,835

$

103,732

Net revenue (1)(2)

$

143,354

$

135,788

$

136,036

$

134,426

$

133,546

Operating profit (1)(2)

$

67,889

$

60,038

$

60,209

$

63,157

$

56,291

Provision for loan and covered loan losses

$

327

$

3,707

$

4,476

$

8,120

$

8,843

Income before income taxes

$

66,818

$

55,531

$

54,893

$

54,219

$

46,643

Net income available to common stockholders

$

40,824

$

34,505

$

33,706

$

33,058

$

28,915

Per Common Share Data:

Basic earnings per share

$

0.52

$

0.44

$

0.43

$

0.42

$

0.37

Diluted earnings per share

$

0.52

$

0.44

$

0.43

$

0.42

$

0.37

Dividends declared

$

0.01

$

0.01

$

0.01

$

0.01

$

0.01

Book value (period end) (1)

$

17.90

$

17.21

$

16.75

$

16.40

$

15.88

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

$

16.61

$

15.90

$

15.43

$

15.05

$

14.52

Market value (period end)

$

29.06

$

30.51

$

28.93

$

21.40

$

21.22

Book value multiple (period end)

1.62

x

1.77

x

1.73

x

1.31

x

1.34

Share Data:

Weighted-average common shares outstanding

77,062

76,675

76,533

76,494

76,415

Weighted-average diluted common shares outstanding

77,806

77,417

76,967

76,819

76,581

Common shares issued (period end)

78,101

78,108

77,982

77,993

78,015

Common shares outstanding (period end)

78,069

78,049

77,708

77,680

77,630

Performance Ratio:

Return on average common equity

11.88

%

10.48

%

10.28

%

10.43

%

9.28

%

Return on average assets

1.14

%

1.00

%

0.96

%

0.96

%

0.86

%

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

12.97

%

11.50

%

11.33

%

11.55

%

10.30

%

Net interest margin (1)(2)

3.21

%

3.23

%

3.18

%

3.18

%

3.22

%

Fee revenue as a percent of total revenue (1)

21.11

%

19.24

%

19.61

%

20.72

%

21.77

%

Non-interest income to average assets

0.84

%

0.76

%

0.76

%

0.81

%

0.87

%

Non-interest expense to average assets

2.10

%

2.19

%

2.16

%

2.07

%

2.31

%

Net overhead ratio (1)

1.26

%

1.43

%

1.40

%

1.26

%

1.44

%

Efficiency ratio (1)(2)

52.64

%

55.79

%

55.74

%

53.02

%

57.85

%

Balance Sheet Ratios:

Loans to deposits (period end) (3)

91.02

%

91.91

%

88.60

%

87.97

%

89.27

%

Average interest-earning assets to average interest-bearing liabilities

143.72

%

143.43

%

144.87

%

140.72

%

139.76

%

Capital Ratios (period end):

Total risk-based capital (1)

13.41

%

13.39

%

13.30

%

13.48

%

13.70

%

Tier 1 risk-based capital (1)

11.24

%

11.19

%

11.08

%

11.05

%

11.04

%

Tier 1 leverage ratio (1)

10.63

%

10.60

%

10.37

%

10.32

%

10.25

%

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

9.42

%

9.33

%

9.19

%

9.11

%

9.05

%

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

8.94

%

8.74

%

8.57

%

8.49

%

8.43

%

Total equity to total assets

9.57

%

9.39

%

9.24

%

9.18

%

9.15

%

(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)    

For purposes of our presentation, we calculate this ratio under currently effective requirements and without giving effect to the final Basel III capital rules adopted and issued by the Federal Reserve Board in July 2013, which are effective January 1, 2014 with compliance required January 1, 2015.

 

Selected Financial Data (continued)

(Dollars in thousands)

(Unaudited)

2Q14

1Q14

4Q13

3Q13

2Q13

Additional Selected Information:

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

$

(250)

$

(66)

$

619

$

(521)

$

1,882

Salaries and employee benefits:

Salaries and wages

$

25,671

$

24,973

$

23,971

$

23,639

$

23,397

Share-based costs

3,892

3,685

3,316

3,261

3,236

Incentive compensation and commissions

10,493

8,244

11,711

10,753

9,240

Payroll taxes, insurance and retirement costs

4,349

7,718

3,577

3,707

3,981

  Total salaries and employee benefits

$

44,405

$

44,620

$

42,575

$

41,360

$

39,854

(Release) provision for unfunded commitments

$

(339)

$

496

$

1,019

$

(1,346)

$

467

Assets under management and administration (AUMA) (1)

$

6,361,560

$

6,036,381

$

5,731,980

$

5,570,614

$

5,427,498

Custody assets included in AUMA

$

2,928,116

$

2,663,502

$

2,506,291

$

2,427,093

$

2,351,163

(1)

Refer to Glossary of Terms for definition.

SOURCE PrivateBancorp, Inc.



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