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

Jul 18, 2013, 07:30 ET from PrivateBancorp, Inc.

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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