PrivateBancorp Reports Second Quarter Earnings
Earnings per share of $0.37, up 6 percent from first quarter 2013 and 95 percent from second quarter 2012
CHICAGO, July 18, 2013 /PRNewswire/ -- PrivateBancorp, Inc. (NASDAQ: PVTB) today reported net income available to common shareholders of $28.9 million, or $0.37 per diluted share, for the second quarter 2013, compared to $27.3 million, or $0.35 per diluted share, for the first quarter 2013 and $14.1 million, or $0.19 per diluted share, for the second quarter 2012. For the six months ended June 30, 2013, the Company had net income available to common shareholders of $56.2 million, or $0.72 per diluted share, as compared to $24.9 million, or $0.34 per diluted share, for the six months ended June 30, 2012.
"This was another quarter of strong performance for us. Our consistent focus on client development, the continued benefit of improving credit quality and our commitment to managing costs drove second quarter net income to $28.9 million, a 6 percent increase from the first quarter and doubled from a year ago," said Larry D. Richman, President and Chief Executive Officer, PrivateBancorp, Inc. "We continued to add new clients who are consistent with our strategy and most of our growth was in commercial and industrial loans, although loan demand remained low and the environment is competitive. We remain selective and disciplined in business development, with a focus on clients who want a full banking relationship with us. We believe this approach will benefit us as we position our business for greater returns as the economy continues to improve."
Second Quarter 2013 Highlights
- Net income of $28.9 million, or $0.37 per share, increased 6 percent as compared to the first quarter 2013 as a result of lower provision for loan losses and non-interest expenses.
- Operating profit increased to $56.3 million, as compared to $55.3 million for the previous quarter, and included $3.0 million of non-recurring expenses and a $1.9 million positive credit valuation adjustment.
- Total loans as of June 30, 2013, were $10.1 billion, an increase of $60.8 million from the previous quarter end, with the majority of growth in commercial and industrial loan balances.
- Net interest margin was 3.22 percent, an increase of 3 basis points as compared to the previous quarter from lower deposit costs and higher loan yields.
- Nonperforming assets declined 12 percent to $178.9 million from the prior quarter, benefiting from sales of non-performing loans and other real estate owned. Nonperforming assets to total assets were 1.33 percent at June 30, 2013, compared to 1.51 percent at March 31, 2013, and 2.47 percent at June 30, 2012.
Operating Performance
Net revenue was $133.5 million in the second quarter 2013, compared to $134.3 million in the first quarter 2013 and $132.3 million in the second quarter 2012. Operating profit was $56.3 million in the second quarter 2013, compared to $55.3 million in the first quarter 2013 and $48.4 million in the second quarter 2012. The results for the second quarter 2013 reflected a $692,000 increase of net interest income, a $954,000 decline of fee revenue and the benefit of a $1.9 million positive credit valuation adjustment ("CVA"), as compared to a positive $246,000 CVA in the previous quarter. Operating profit for the second quarter 2013 included $2.0 million of restructuring charges and a $1.0 million write-down on repurchased loans.
Net interest income was $103.7 million in the second quarter 2013, compared to $103.0 million in the first quarter 2013 and $105.3 million for the second quarter 2012. Net interest margin was 3.22 percent in the second quarter 2013, compared to 3.19 percent in the first quarter 2013 and 3.46 percent in the second quarter 2012. The increase of net interest margin as compared to the previous quarter was the result of lower rates paid on deposits and the positive impact of higher loan yields.
Non-interest income was $29.0 million in the second quarter 2013, compared to $30.5 million in the first quarter 2013 and $26.2 million in the second quarter 2012. Trust and investments fees increased $406,000, or 9 percent, to $4.8 million, supported by the growth of assets under management and administration in the first half 2013. Treasury management benefited from continued cross-sell success and increased $285,000, or 5 percent, to $6.2 million as compared to the previous quarter. Mortgage banking revenue was $3.2 million, a 23 percent reduction from the previous quarter, reflecting an industry-wide slowdown in refinancing activity. Syndication revenue declined from the record level achieved in the first quarter 2013 to $3.1 million on lower transaction volume in the quarter. Deposit service charges and fees and other income, which in the previous quarter benefited from a $1.1 million gain on loan sale, declined by $1.2 million.
Capital markets revenue of $6.0 million in the second quarter was up from $5.0 million in the previous quarter. Excluding CVA, capital markets revenue declined $627,000 from the previous quarter, reflecting clients' outlook on interest rates.
Net securities gains were $136,000 for the second quarter as compared to $641,000 for the previous quarter.
Expenses
Non-interest expense was $77.3 million in the second quarter 2013, compared to $79.0 million in the first quarter 2013 and $83.9 million in the second quarter 2012, and benefited from active expense management. Compensation expense declined $3.3 million, or 8 percent, from the previous quarter, as the first quarter 2013 experienced seasonally higher payroll taxes and 401k contributions. Net foreclosed property expense benefited from less OREO and decreased 16 percent from the first quarter 2013.
Other expenses in the second quarter 2013 were $7.5 million, as compared to $6.2 million in the previous quarter, and included $2.0 million of restructuring costs associated with the vacating of underutilized space in Michigan and changes to the Atlanta operations. Second quarter 2013 other expenses also included a $1 million write-down on repurchased loans.
The effective tax rate was 38 percent for the second quarter 2013, unchanged from the first quarter 2013 and down from 43 percent for the second quarter 2012, due to the restoration of tax benefits for executive compensation subsequent to the repayment of TARP and the absence of tax charges associated with stock-based compensation.
Credit Quality
Overall asset quality continued to improve during the second quarter 2013. Nonperforming loans were $121.8 million at June 30, 2013, declining 5 percent from March 31, 2013, and 42 percent from June 30, 2012. OREO declined 23 percent from March 31, 2013, and 48 percent from June 30, 2012, as a result of increased property sales and reduced foreclosure activity. Nonperforming assets to total assets were 1.33 percent at June 30, 2013, compared to 1.51 percent at March 31, 2013, and 2.47 percent at June 30, 2012.
The improvement in asset quality resulted in a lower allowance for loan losses. As of June 30, 2013, the allowance for loan losses was $148.2 million as compared to $154.0 million at March 31, 2013, and $174.3 million at June 30, 2012. As a percent of total loans, the allowance for loan losses at June 30, 2013, was 1.47 percent down from 1.53 percent at March 31, 2013, and 1.85 percent at June 30, 2012. Net charge-offs of $14.1 million for the second quarter 2013 were down 20 percent as compared to the previous quarter and 48 percent as compared to second quarter 2012. The provision for loan losses was $8.3 million for the second quarter 2013, a decline of 18 percent from the previous quarter and 52 percent from the second quarter 2012.
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 $13.5 billion at June 30, 2013, compared to $13.4 billion at March 31, 2013. Total loans increased 1 percent or $60.8 million to $10.1 billion from the previous quarter end. Financings to new and existing commercial and industrial clients grew 1 percent and comprised 66 percent of the loan portfolio at quarter end.
Total deposits were $11.3 billion at June 30, 2013, a 1 percent decline in comparison to total deposits at March 31, 2013. At June 30, 2013, client deposits comprised 95 percent of total deposits, and the loan to deposit ratio was 89 percent.
The Company's investment securities portfolio was $2.5 billion at June 30, 2013, compared to $2.4 billion at March 31, 2013. The securities portfolio is primarily composed of U.S. government agency backed mortgage securities, U.S. Treasuries, agency backed collateralized mortgage obligations, and investment grade municipal bonds.
Capital
As of June 30, 2013, the total risk-based capital ratio was 13.70 percent, the Tier 1 risk-based capital ratio was 11.04 percent, and the leverage ratio was 10.21 percent. The Tier 1 common capital ratio was 9.05 percent (without giving effect to the final Basel III capital rules adopted and issued by the Federal Reserve Board on July 2, 2013) and tangible common equity ratio was 8.43 percent at the end of the second quarter 2013.
Quarterly Conference Call and Webcast Presentation
PrivateBancorp will host a conference call on Thursday, July 18, 2013, 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 #13164843. 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 August 1, 2013, by calling (855) 859-2056 (U.S. and Canada) or (404) 537-3406 (International) and entering passcode #13164843.
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, 2013, the Company had 36 offices in 10 states and $13.5 billion in assets. The Company website is www.theprivatebank.com.
Forward-Looking Statements
Statements made in this press release that are not historical facts may constitute forward-looking statements within the meaning of federal securities laws. Our ability to predict results or the actual effects of future plans, strategies or events is inherently uncertain. Factors which could cause actual results to differ from those reflected in forward-looking statements include:
- continued uncertainty regarding U.S. and global economic outlook that may impact market conditions and credit quality or prolong weakness in demand for loans or other banking products and services;
- unanticipated developments in pending or prospective loan transactions or greater than expected paydowns or payoffs of existing loans;
- unanticipated changes in interest rates;
- competitive trends in our markets;
- unforeseen credit quality problems that could result in charge-offs greater than we have anticipated in our allowance for loan losses;
- slower than anticipated dispositions of other real estate owned or declines in real estate values which may negatively impact foreclosed property expense;
- lack of sufficient or cost-effective sources of liquidity or funding as and when needed;
- loss of key personnel or an inability to recruit and retain appropriate talent;
- potential impact of recently adopted capital rules;
- greater than anticipated impact on costs, revenues and offered products and services associated with the implementation of other regulatory changes;
- changes in monetary or fiscal policies of the U.S. Government; or
- failures or disruptions to our data processing or other information or operational systems, including the potential impact of disruptions or breaches at our third party service providers.
These factors should be considered in evaluating forward-looking statements and undue reliance should not be placed on our forward-looking statements. Readers should also consider the risks, assumptions and uncertainties set forth in the "Risk Factors" section of our Form 10-K for the year ended December 31, 2012 as well as those set forth in our subsequent periodic reports filed with the SEC. Forward-looking statements speak only as of the date they are made and we assume no obligation to update any of these statements in light of new information, future events or otherwise unless required under the federal securities laws.
Non-U.S. GAAP Financial Measures
This press release contains both financial measures based on accounting principles generally accepted in the United States (U.S. GAAP) and non-U.S. GAAP based financial measures. The Company believes that these non-U.S. 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-U.S. GAAP financial measures are used, the comparable U.S. GAAP financial measure, as well as the reconciliation to the comparable U.S. GAAP financial measure, can be found in this press release. These disclosures should not be viewed as a substitute for operating results determined in accordance with U.S. GAAP, nor are they necessarily comparable to non-U.S. GAAP performance measures that may be presented by other companies.
Editor's Note: Financial highlights attached. Full financial supplement available on Company's website at www.theprivatebank.com.
Consolidated Income Statements |
|||||||||||||||
(Amounts in thousands, except per share data) |
|||||||||||||||
(Unaudited) |
|||||||||||||||
Quarters Ended June 30, |
Six Months Ended June 30, |
||||||||||||||
2013 |
2012 |
2013 |
2012 |
||||||||||||
Interest Income |
|||||||||||||||
Loans, including fees |
$ |
107,407 |
$ |
105,142 |
$ |
214,194 |
$ |
208,681 |
|||||||
Federal funds sold and interest-bearing deposits in banks |
112 |
133 |
320 |
265 |
|||||||||||
Securities: |
|||||||||||||||
Taxable |
12,519 |
14,723 |
25,341 |
29,981 |
|||||||||||
Exempt from Federal income taxes |
1,532 |
1,336 |
3,034 |
2,636 |
|||||||||||
Other interest income |
62 |
131 |
152 |
253 |
|||||||||||
Total interest income |
121,632 |
121,465 |
243,041 |
241,816 |
|||||||||||
Interest Expense |
|||||||||||||||
Interest-bearing demand deposits |
1,034 |
799 |
2,149 |
1,435 |
|||||||||||
Savings deposits and money market accounts |
3,887 |
4,265 |
8,286 |
8,867 |
|||||||||||
Brokered and time deposits |
4,956 |
5,394 |
10,085 |
10,411 |
|||||||||||
Short-term and secured borrowings |
410 |
123 |
528 |
265 |
|||||||||||
Long-term debt |
7,613 |
5,538 |
15,221 |
11,116 |
|||||||||||
Total interest expense |
17,900 |
16,119 |
36,269 |
32,094 |
|||||||||||
Net interest income |
103,732 |
105,346 |
206,772 |
209,722 |
|||||||||||
Provision for loan and covered loan losses |
8,843 |
17,038 |
19,200 |
44,739 |
|||||||||||
Net interest income after provision for loan and covered loan losses |
94,889 |
88,308 |
187,572 |
164,983 |
|||||||||||
Non-interest Income |
|||||||||||||||
Trust and Investments |
4,800 |
4,312 |
9,194 |
8,531 |
|||||||||||
Mortgage banking |
3,198 |
2,915 |
7,368 |
5,578 |
|||||||||||
Capital markets products |
6,048 |
6,033 |
11,087 |
13,382 |
|||||||||||
Treasury management |
6,209 |
5,260 |
12,133 |
10,414 |
|||||||||||
Loan, letter of credit and commitment fees |
4,282 |
4,359 |
8,359 |
8,723 |
|||||||||||
Syndication fees |
3,140 |
2,013 |
6,972 |
4,176 |
|||||||||||
Deposit service charges and fees and other income |
1,196 |
1,644 |
3,587 |
3,131 |
|||||||||||
Net securities gains (losses) |
136 |
(290) |
777 |
(185) |
|||||||||||
Total non-interest income |
29,009 |
26,246 |
59,477 |
53,750 |
|||||||||||
Non-interest Expense |
|||||||||||||||
Salaries and employee benefits |
39,854 |
42,177 |
82,994 |
84,875 |
|||||||||||
Net occupancy expense |
7,387 |
7,653 |
14,921 |
15,332 |
|||||||||||
Technology and related costs |
3,476 |
3,273 |
6,940 |
6,569 |
|||||||||||
Marketing |
3,695 |
3,058 |
6,012 |
5,218 |
|||||||||||
Professional services |
1,782 |
2,247 |
3,681 |
4,204 |
|||||||||||
Outsourced servicing costs |
1,964 |
2,093 |
3,598 |
3,803 |
|||||||||||
Net foreclosed property expenses |
5,555 |
11,894 |
12,198 |
20,129 |
|||||||||||
Postage, telephone, and delivery |
981 |
882 |
1,824 |
1,751 |
|||||||||||
Insurance |
2,804 |
4,239 |
5,343 |
8,544 |
|||||||||||
Loan and collection expense |
2,280 |
2,918 |
5,057 |
6,075 |
|||||||||||
Other expenses |
7,477 |
3,424 |
13,650 |
7,587 |
|||||||||||
Total non-interest expense |
77,255 |
83,858 |
156,218 |
164,087 |
|||||||||||
Income before income taxes |
46,643 |
30,696 |
90,831 |
54,646 |
|||||||||||
Income tax provision |
17,728 |
13,192 |
34,646 |
22,887 |
|||||||||||
Net income |
28,915 |
17,504 |
56,185 |
31,759 |
|||||||||||
Preferred stock dividends and discount accretion |
— |
3,442 |
— |
6,878 |
|||||||||||
Net income available to common stockholders |
$ |
28,915 |
$ |
14,062 |
$ |
56,185 |
$ |
24,881 |
|||||||
Per Common Share Data |
|||||||||||||||
Basic earnings per share |
$ |
0.37 |
$ |
0.19 |
$ |
0.72 |
$ |
0.35 |
|||||||
Diluted earnings per share |
$ |
0.37 |
$ |
0.19 |
$ |
0.72 |
$ |
0.34 |
|||||||
Cash dividends declared |
$ |
0.01 |
$ |
0.01 |
$ |
0.02 |
$ |
0.02 |
|||||||
Weighted-average common shares outstanding |
76,415 |
70,956 |
76,280 |
70,868 |
|||||||||||
Weighted-average diluted common shares outstanding |
76,581 |
71,147 |
76,393 |
71,041 |
Note: Certain reclassifications have been made to prior period financial statements to place them on a basis comparable with the current period financial statements. |
Consolidated Income Statements |
|||||||||||||||||||
(Amounts in thousands, except per share data) |
|||||||||||||||||||
(Unaudited) |
|||||||||||||||||||
2Q13 |
1Q13 |
4Q12 |
3Q12 |
2Q12 |
|||||||||||||||
Interest Income |
|||||||||||||||||||
Loans, including fees |
$ |
107,407 |
$ |
106,787 |
$ |
108,172 |
$ |
106,358 |
$ |
105,142 |
|||||||||
Federal funds sold and interest-bearing deposits in banks |
112 |
208 |
452 |
248 |
133 |
||||||||||||||
Securities: |
|||||||||||||||||||
Taxable |
12,519 |
12,822 |
12,938 |
13,907 |
14,723 |
||||||||||||||
Exempt from Federal income taxes |
1,532 |
1,502 |
1,462 |
1,389 |
1,336 |
||||||||||||||
Other interest income |
62 |
90 |
168 |
126 |
131 |
||||||||||||||
Total interest income |
121,632 |
121,409 |
123,192 |
122,028 |
121,465 |
||||||||||||||
Interest Expense |
|||||||||||||||||||
Interest-bearing demand deposits |
1,034 |
1,115 |
985 |
958 |
799 |
||||||||||||||
Savings deposits and money market accounts |
3,887 |
4,399 |
4,531 |
4,206 |
4,265 |
||||||||||||||
Brokered and time deposits |
4,956 |
5,129 |
5,561 |
5,860 |
5,394 |
||||||||||||||
Short-term and secured borrowings |
410 |
118 |
77 |
101 |
123 |
||||||||||||||
Long-term debt |
7,613 |
7,608 |
7,235 |
5,495 |
5,538 |
||||||||||||||
Total interest expense |
17,900 |
18,369 |
18,389 |
16,620 |
16,119 |
||||||||||||||
Net interest income |
103,732 |
103,040 |
104,803 |
105,408 |
105,346 |
||||||||||||||
Provision for loan and covered loan losses |
8,843 |
10,357 |
13,177 |
13,509 |
17,038 |
||||||||||||||
Net interest income after provision for loan and covered loan losses |
94,889 |
92,683 |
91,626 |
91,899 |
88,308 |
||||||||||||||
Non-interest Income |
|||||||||||||||||||
Trust and Investments |
4,800 |
4,394 |
4,232 |
4,254 |
4,312 |
||||||||||||||
Mortgage banking |
3,198 |
4,170 |
4,197 |
3,685 |
2,915 |
||||||||||||||
Capital markets products |
6,048 |
5,039 |
6,744 |
5,832 |
6,033 |
||||||||||||||
Treasury management |
6,209 |
5,924 |
5,606 |
5,490 |
5,260 |
||||||||||||||
Loan, letter of credit and commitment fees |
4,282 |
4,077 |
4,671 |
4,779 |
4,359 |
||||||||||||||
Syndication fees |
3,140 |
3,832 |
2,231 |
2,700 |
2,013 |
||||||||||||||
Deposit service charges and fees and other income |
1,196 |
2,391 |
1,582 |
1,308 |
1,644 |
||||||||||||||
Net securities gains (losses) |
136 |
641 |
191 |
(211) |
(290) |
||||||||||||||
Total non-interest income |
29,009 |
30,468 |
29,454 |
27,837 |
26,246 |
||||||||||||||
Non-interest Expense |
|||||||||||||||||||
Salaries and employee benefits |
39,854 |
43,140 |
45,253 |
44,820 |
42,177 |
||||||||||||||
Net occupancy expense |
7,387 |
7,534 |
7,762 |
7,477 |
7,653 |
||||||||||||||
Technology and related costs |
3,476 |
3,464 |
3,249 |
3,432 |
3,273 |
||||||||||||||
Marketing |
3,695 |
2,317 |
2,448 |
2,645 |
3,058 |
||||||||||||||
Professional services |
1,782 |
1,899 |
1,998 |
2,151 |
2,247 |
||||||||||||||
Outsourced servicing costs |
1,964 |
1,634 |
1,814 |
1,802 |
2,093 |
||||||||||||||
Net foreclosed property expenses |
5,555 |
6,643 |
9,571 |
8,596 |
11,894 |
||||||||||||||
Postage, telephone, and delivery |
981 |
843 |
909 |
837 |
882 |
||||||||||||||
Insurance |
2,804 |
2,539 |
3,290 |
3,352 |
4,239 |
||||||||||||||
Loan and collection expense |
2,280 |
2,777 |
2,227 |
3,329 |
2,918 |
||||||||||||||
Other expenses |
7,477 |
6,173 |
2,794 |
3,289 |
3,424 |
||||||||||||||
Total non-interest expense |
77,255 |
78,963 |
81,315 |
81,730 |
83,858 |
||||||||||||||
Income before income taxes |
46,643 |
44,188 |
39,765 |
38,006 |
30,696 |
||||||||||||||
Income tax provision |
17,728 |
16,918 |
16,682 |
14,952 |
13,192 |
||||||||||||||
Net income |
28,915 |
27,270 |
23,083 |
23,054 |
17,504 |
||||||||||||||
Preferred stock dividends and discount accretion |
— |
— |
3,043 |
3,447 |
3,442 |
||||||||||||||
Net income available to common stockholders |
$ |
28,915 |
$ |
27,270 |
$ |
20,040 |
$ |
19,607 |
$ |
14,062 |
|||||||||
Per Common Share Data |
|||||||||||||||||||
Basic earnings per share |
$ |
0.37 |
$ |
0.35 |
$ |
0.26 |
$ |
0.27 |
$ |
0.19 |
|||||||||
Diluted earnings per share |
$ |
0.37 |
$ |
0.35 |
$ |
0.26 |
$ |
0.27 |
$ |
0.19 |
|||||||||
Cash dividends declared |
$ |
0.01 |
$ |
0.01 |
$ |
0.01 |
$ |
0.01 |
$ |
0.01 |
|||||||||
Weighted-average common shares outstanding |
76,415 |
76,143 |
75,035 |
71,010 |
70,956 |
||||||||||||||
Weighted-average diluted common shares outstanding |
76,581 |
76,203 |
75,374 |
71,274 |
71,147 |
Consolidated Balance Sheets |
|||||||||||||||||||
(Dollars in thousands) |
|||||||||||||||||||
6/30/13 |
3/31/13 |
12/31/12 |
9/30/12 |
6/30/12 |
|||||||||||||||
(Unaudited) |
(Unaudited) |
(Audited) |
(Unaudited) |
(Unaudited) |
|||||||||||||||
Assets |
|||||||||||||||||||
Cash and due from banks |
$ |
150,683 |
$ |
118,583 |
$ |
234,308 |
$ |
143,573 |
$ |
141,563 |
|||||||||
Federal funds sold and interest-bearing deposits in banks |
147,699 |
203,647 |
707,143 |
470,984 |
315,378 |
||||||||||||||
Loans held-for-sale |
34,803 |
38,091 |
49,696 |
49,209 |
35,342 |
||||||||||||||
Securities available-for-sale, at fair value |
1,580,179 |
1,457,433 |
1,451,160 |
1,550,516 |
1,625,649 |
||||||||||||||
Securities held-to-maturity, at amortized cost |
955,688 |
959,994 |
863,727 |
784,930 |
693,277 |
||||||||||||||
Federal Home Loan Bank ("FHLB") stock |
34,063 |
34,288 |
43,387 |
43,387 |
43,467 |
||||||||||||||
Loans – excluding covered assets, net of unearned fees |
10,094,636 |
10,033,803 |
10,139,982 |
9,625,421 |
9,436,235 |
||||||||||||||
Allowance for loan losses |
(148,183) |
(153,992) |
(161,417) |
(166,859) |
(174,302) |
||||||||||||||
Loans, net of allowance for loan losses and unearned fees |
9,946,453 |
9,879,811 |
9,978,565 |
9,458,562 |
9,261,933 |
||||||||||||||
Covered assets |
158,326 |
176,855 |
194,216 |
208,979 |
244,782 |
||||||||||||||
Allowance for covered loan losses |
(24,995) |
(24,089) |
(24,011) |
(21,500) |
(21,733) |
||||||||||||||
Covered assets, net of allowance for covered loan losses |
133,331 |
152,766 |
170,205 |
187,479 |
223,049 |
||||||||||||||
Other real estate owned, excluding covered assets |
57,134 |
73,857 |
81,880 |
97,833 |
109,836 |
||||||||||||||
Premises, furniture, and equipment, net |
37,025 |
38,373 |
39,508 |
40,526 |
38,177 |
||||||||||||||
Accrued interest receivable |
38,325 |
39,205 |
34,832 |
36,892 |
37,089 |
||||||||||||||
Investment in bank owned life insurance |
53,216 |
52,873 |
52,513 |
52,134 |
51,751 |
||||||||||||||
Goodwill |
94,496 |
94,509 |
94,521 |
94,534 |
94,546 |
||||||||||||||
Other intangible assets |
11,266 |
12,047 |
12,828 |
13,500 |
14,152 |
||||||||||||||
Derivative assets |
57,361 |
90,303 |
99,261 |
114,777 |
109,539 |
||||||||||||||
Other assets |
144,771 |
126,450 |
143,981 |
139,718 |
147,428 |
||||||||||||||
Total assets |
$ |
13,476,493 |
$ |
13,372,230 |
$ |
14,057,515 |
$ |
13,278,554 |
$ |
12,942,176 |
|||||||||
Liabilities |
|||||||||||||||||||
Demand deposits: |
|||||||||||||||||||
Noninterest-bearing |
$ |
2,736,868 |
$ |
2,756,879 |
$ |
3,690,340 |
$ |
3,295,568 |
$ |
2,920,182 |
|||||||||
Interest-bearing |
1,234,134 |
1,390,955 |
1,057,390 |
893,194 |
785,879 |
||||||||||||||
Savings deposits and money market accounts |
4,654,930 |
4,741,864 |
4,912,820 |
4,381,595 |
4,146,022 |
||||||||||||||
Brokered time deposits |
1,190,796 |
983,625 |
993,455 |
1,290,796 |
1,484,435 |
||||||||||||||
Time deposits |
1,491,604 |
1,518,980 |
1,519,629 |
1,498,287 |
1,398,012 |
||||||||||||||
Total deposits |
11,308,332 |
11,392,303 |
12,173,634 |
11,359,440 |
10,734,530 |
||||||||||||||
Short-term and secured borrowings |
308,700 |
107,775 |
5,000 |
5,000 |
335,000 |
||||||||||||||
Long-term debt |
499,793 |
499,793 |
499,793 |
374,793 |
374,793 |
||||||||||||||
Accrued interest payable |
5,963 |
6,787 |
7,141 |
5,287 |
5,855 |
||||||||||||||
Derivative liabilities |
62,014 |
84,370 |
93,276 |
108,678 |
106,064 |
||||||||||||||
Other liabilities |
58,651 |
49,137 |
71,505 |
61,916 |
51,780 |
||||||||||||||
Total liabilities |
12,243,453 |
12,140,165 |
12,850,349 |
11,915,114 |
11,608,022 |
||||||||||||||
Equity |
|||||||||||||||||||
Preferred stock |
— |
— |
— |
241,585 |
241,185 |
||||||||||||||
Common stock: |
|||||||||||||||||||
Voting |
75,238 |
73,144 |
73,479 |
68,348 |
68,307 |
||||||||||||||
Nonvoting |
1,585 |
3,536 |
3,536 |
3,536 |
3,536 |
||||||||||||||
Treasury stock |
(9,001) |
(9,631) |
(24,150) |
(22,736) |
(22,639) |
||||||||||||||
Additional paid-in capital |
1,016,615 |
1,014,443 |
1,026,438 |
956,356 |
951,127 |
||||||||||||||
Retained earnings |
134,423 |
106,288 |
79,799 |
60,533 |
41,651 |
||||||||||||||
Accumulated other comprehensive income, net of tax |
14,180 |
44,285 |
48,064 |
55,818 |
50,987 |
||||||||||||||
Total equity |
1,233,040 |
1,232,065 |
1,207,166 |
1,363,440 |
1,334,154 |
||||||||||||||
Total liabilities and equity |
$ |
13,476,493 |
$ |
13,372,230 |
$ |
14,057,515 |
$ |
13,278,554 |
$ |
12,942,176 |
Note: Certain reclassifications have been made to prior period financial statements to place them on a basis comparable with the current period financial statements. |
Selected Financial Data |
||||||||||||||||||||
(Amounts in thousands, except per share data) |
||||||||||||||||||||
(Unaudited) |
||||||||||||||||||||
2Q13 |
1Q13 |
4Q12 |
3Q12 |
2Q12 |
||||||||||||||||
Selected Statement of Income Data: |
||||||||||||||||||||
Net interest income |
$ |
103,732 |
$ |
103,040 |
$ |
104,803 |
$ |
105,408 |
$ |
105,346 |
||||||||||
Net revenue (1)(2) |
$ |
133,546 |
$ |
134,292 |
$ |
135,022 |
$ |
133,974 |
$ |
132,291 |
||||||||||
Operating profit (1)(2) |
$ |
56,291 |
$ |
55,329 |
$ |
53,707 |
$ |
52,244 |
$ |
48,433 |
||||||||||
Provision for loan and covered loan losses |
$ |
8,843 |
$ |
10,357 |
$ |
13,177 |
$ |
13,509 |
$ |
17,038 |
||||||||||
Income before income taxes |
$ |
46,643 |
$ |
44,188 |
$ |
39,765 |
$ |
38,006 |
$ |
30,696 |
||||||||||
Net income available to common stockholders |
$ |
28,915 |
$ |
27,270 |
$ |
20,040 |
$ |
19,607 |
$ |
14,062 |
||||||||||
Per Common Share Data: |
||||||||||||||||||||
Basic earnings per share |
$ |
0.37 |
$ |
0.35 |
$ |
0.26 |
$ |
0.27 |
$ |
0.19 |
||||||||||
Diluted earnings per share |
$ |
0.37 |
$ |
0.35 |
$ |
0.26 |
$ |
0.27 |
$ |
0.19 |
||||||||||
Dividends declared |
$ |
0.01 |
$ |
0.01 |
$ |
0.01 |
$ |
0.01 |
$ |
0.01 |
||||||||||
Book value (period end) (1) |
$ |
15.88 |
$ |
15.87 |
$ |
15.65 |
$ |
15.49 |
$ |
15.09 |
||||||||||
Tangible book value (period end) (1)(2) |
$ |
14.52 |
$ |
14.49 |
$ |
14.26 |
$ |
14.00 |
$ |
13.59 |
||||||||||
Market value (close) |
$ |
21.22 |
$ |
18.89 |
$ |
15.32 |
$ |
15.99 |
$ |
14.76 |
||||||||||
Book value multiple |
1.34 |
x |
1.19 |
x |
0.98 |
x |
1.03 |
x |
0.98 |
x |
||||||||||
Share Data: |
||||||||||||||||||||
Weighted-average common shares outstanding |
76,415 |
76,143 |
75,035 |
71,010 |
70,956 |
|||||||||||||||
Weighted-average diluted common shares outstanding |
76,581 |
76,203 |
75,374 |
71,274 |
71,147 |
|||||||||||||||
Common shares issued (at period end) |
78,015 |
78,050 |
78,062 |
73,291 |
73,273 |
|||||||||||||||
Common shares outstanding (at period end) |
77,630 |
77,649 |
77,115 |
72,436 |
72,424 |
|||||||||||||||
Performance Ratio: |
||||||||||||||||||||
Return on average assets |
0.86 |
% |
0.81 |
% |
0.67 |
% |
0.70 |
% |
0.55 |
% |
||||||||||
Return on average common equity |
9.28 |
% |
9.01 |
% |
6.64 |
% |
7.00 |
% |
5.18 |
% |
||||||||||
Return on average tangible common equity (1)(2) |
10.30 |
% |
10.04 |
% |
7.45 |
% |
7.91 |
% |
5.92 |
% |
||||||||||
Net interest margin (1)(2) |
3.22 |
% |
3.19 |
% |
3.16 |
% |
3.35 |
% |
3.46 |
% |
||||||||||
Fee revenue as a percent of total revenue (1) |
21.77 |
% |
22.45 |
% |
21.83 |
% |
21.02 |
% |
20.12 |
% |
||||||||||
Non-interest income to average assets |
0.87 |
% |
0.91 |
% |
0.85 |
% |
0.85 |
% |
0.83 |
% |
||||||||||
Non-interest expense to average assets |
2.31 |
% |
2.35 |
% |
2.35 |
% |
2.49 |
% |
2.64 |
% |
||||||||||
Net overhead ratio (1) |
1.44 |
% |
1.44 |
% |
1.50 |
% |
1.64 |
% |
1.81 |
% |
||||||||||
Efficiency ratio (1) (2) |
57.85 |
% |
58.80 |
% |
60.22 |
% |
61.00 |
% |
63.39 |
% |
||||||||||
Balance Sheet Ratios: |
||||||||||||||||||||
Loans to deposits (period end) (3) |
89.27 |
% |
88.08 |
% |
83.29 |
% |
84.73 |
% |
87.91 |
% |
||||||||||
Average interest-earning assets to average interest-bearing liabilities |
139.76 |
% |
141.21 |
% |
150.03 |
% |
147.76 |
% |
146.44 |
% |
||||||||||
Capital Ratios (period end): |
||||||||||||||||||||
Total risk-based capital (1) |
13.70 |
% |
13.58 |
% |
13.17 |
% |
13.90 |
% |
14.12 |
% |
||||||||||
Tier 1 risk-based capital (1) |
11.04 |
% |
10.90 |
% |
10.51 |
% |
12.24 |
% |
12.25 |
% |
||||||||||
Tier 1 leverage ratio (1) |
10.21 |
% |
9.81 |
% |
9.50 |
% |
11.15 |
% |
11.20 |
% |
||||||||||
Tier 1 common equity to risk-weighted assets (1)(2)(4) |
9.05 |
% |
8.89 |
% |
8.52 |
% |
8.12 |
% |
8.05 |
% |
||||||||||
Tangible common equity to tangible assets (1)(2) |
8.43 |
% |
8.48 |
% |
7.88 |
% |
7.70 |
% |
7.67 |
% |
||||||||||
Total equity to total assets |
9.15 |
% |
9.21 |
% |
8.59 |
% |
10.27 |
% |
10.31 |
% |
(1) |
Refer to Glossary of Terms for definition. |
(2) |
This is a non-U.S. GAAP financial measure. Refer to "Non-U.S. GAAP Financial Measures" for a reconciliation from non-U.S. GAAP to U.S. GAAP. |
(3) |
Excludes covered assets. Refer to Glossary of Terms for definition. |
(4) |
Does not give effect to the final Basel III capital rules adopted and issued by the Federal Reserve Board on July 2, 2013. |
SOURCE PrivateBancorp, Inc.
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