PrivateBancorp Reports Second Quarter Earnings Per Share of $0.19

Earnings per share up 27 percent from first quarter driven by improved credit quality; Total loans grew $214 million from prior quarter

24 Jul, 2012, 07:30 ET from PrivateBancorp, Inc.

CHICAGO, July 24, 2012 /PRNewswire/ -- PrivateBancorp, Inc. (NASDAQ: PVTB) today reported net income available to common shareholders of $14.1 million, or $0.19 per diluted share, for the second quarter 2012, compared to $5.5 million, or $0.08 per diluted share, for the second quarter 2011, and $10.8 million, or $0.15 per diluted share, for the first quarter 2012. For the six months ended June 30, 2012, the Company had net income available to common shareholders of $24.9 million, or $0.34 per diluted share, compared to $13.0 million, or $0.18 per diluted share, for the six months ended June 30, 2011.

"Continuing to build client relationships and driving overall asset quality improvement led to our highest quarterly profit since the launch of our commercial banking strategy in late 2007," said Larry D. Richman, President and Chief Executive Officer, PrivateBancorp, Inc. "Persistently low interest rates, along with the competitive commercial banking landscape, have pressured our margins. Overall I am pleased with the steady execution of our strategy and the calling effort of our bankers, which is keeping our pipeline solid.

"I believe our performance over the past year demonstrates the strength of our core commercial business model. Compared to a year ago, total loans have increased more than $760 million, while problem loans have declined almost $470 million. Our consistent and focused business development efforts have helped us add clients and increase product sales, which have led to strong growth in treasury management, capital markets and mortgage. All of this helped drive higher net revenue and improved profits for the quarter as compared to second quarter 2011."

Highlights

  • Net income was $14.1 million, up 30 percent from the first quarter 2012, largely as a result of lower provision for loan losses.
  • Net interest income of $105.3 million increased from $104.4 million in the first quarter 2012, as growth in loans offset the impact of net interest margin compression.
  • Operating profit of $48.4 million declined $3.9 million from first quarter 2012, primarily as a result of higher net foreclosed property expense.
  • Asset quality continued to improve during the quarter with non-performing, special mention and potential problem loans declining 14 percent from March 31, 2012. The provision for loan losses declined to $17.4 million, from $27.6 million in the first quarter of 2012.
  • Total loans grew $214.0 million to $9.4 billion at June 30, 2012, driven by growth in commercial and industrial loans from new relationships and existing clients, which now comprise 63 percent of the loan portfolio at quarter end.

Operating Performance Net revenue was $132.3 million in the second quarter 2012, an increase of 8 percent compared to $122.8 million in the second quarter 2011, and relatively flat as compared to $132.6 million in the first quarter 2012. Operating profit was $48.4 million in the second quarter 2012, compared to $47.1 million in the same period prior year and $52.3 million in the prior quarter. For the second quarter 2012, operating profit declined primarily due to higher net foreclosed property expense, which included $9.2 million of valuation adjustments, with the majority of the adjustments relating to land parcels.

Net interest income was $105.3 million for the second quarter 2012, up 5 percent from $100.5 million for the second quarter 2011 and up 1 percent from $104.4 million for the first quarter 2012. Growth in average loan balances of 5 percent over the past year and the 12 basis point decline in funding costs contributed to a $4.8 million increase in net interest income as compared to the second quarter 2011. In comparison to the first quarter 2012, the 4 percent increase in average loan balances in the second quarter offset the impact of declining yields within the loan and investment portfolios.

Net interest margin was 3.46 percent for the second quarter 2012, up from 3.36 percent in the same period prior year and down from 3.53 percent in the prior quarter. The impact to net interest margin from loan fees this quarter was 4 basis points lower than in the prior quarter. While overall changes in the mix of the loan portfolio over the past year have been favorable to net interest margin, average yields on investments and new loan production are generally trending lower.

Non-interest income was $26.2 million in the second quarter 2012, compared to $21.6 million in the second quarter 2011, and $27.5 million in the first quarter 2012. The 22 percent growth of non-interest income as compared to the second quarter of 2011 was a result of higher volumes in mortgage banking and treasury management, and increased capital markets revenue. Non-interest income declined compared to the first quarter 2012, from lower capital markets revenue. Second quarter capital markets revenue included a negative credit valuation adjustment of $830,000, whereas the first quarter results included a positive credit value adjustment of $19,000.

Expenses Non-interest expense was $83.9 million for the second quarter 2012, compared to $75.7 million for the second quarter 2011 and $80.2 million for the first quarter 2012. The increase in non-interest expense was primarily driven by net foreclosed property expense, which was up 59 percent compared to the same period prior year and up 44 percent compared to the prior quarter. Net foreclosed property expense included $9.2 million of valuation adjustments.

The effective tax rate for the quarter was 43.0 percent and continues to be impacted by the non-deductibility of certain compensation expense as well as a reduction in tax benefits of previously awarded stock-based compensation. The Company continues to project an effective tax rate for the full year 2012 ranging from 41 to 42 percent.

Credit Quality The Company's asset quality continued to improve during the second quarter 2012. Non-performing assets declined to $319.2 million at June 30, 2012, down 30 percent from $454.4 million at June 30, 2011, and down 11 percent from $356.7 million at March 31, 2012. Non-performing assets to total assets were 2.47 percent at June 30, 2012, compared to 3.75 percent a year ago, and 2.83 percent at March 31, 2012. Non-performing loans were $209.3 million at the end of the second quarter 2012, a 37 percent decline from $330.4 million a year ago, and a 10 percent decline from $233.2 million at the end of the first quarter 2012. Non-performing loan inflows were $57.7 million during the second quarter 2012, down $11.9 million from the prior quarter. Special mention and potential problem loans declined 56 percent from the second quarter 2011, and 17 percent from the first quarter 2012. Based on ongoing workout and disposition activity, the Company expects problem assets will continue to trend lower in the second half of 2012, driving further improvement in asset quality metrics.

During the second quarter, the Company disposed of $50.8 million of problem assets, with an incremental charge of 2 percent based on the carrying value net of specific reserves at the time of disposition.

The reduction of the allowance for loan losses reflects the overall improvement in asset quality, the reduced requirement for specific reserves, lower charge-offs, and an increase of recoveries. At June 30, 2012, the allowance for loan losses was $174.3 million, or 1.85 percent of total loans, compared to $206.3 million, or 2.38 percent of total loans, at June 30, 2011, and $183.8 million, or 1.99 percent of total loans at March 31, 2012. As a percentage of non-performing loans the allowance for loan losses was 83 percent at the end of the second quarter 2012, compared to 62 percent a year ago, and 79 percent at the end of the first quarter 2012.

The Company benefited from $6.9 million of recoveries this quarter, compared to an average of $3.1 million over the last four quarters. Charge-offs declined to $33.9 million for the second quarter 2012, from $45.3 million for the same period prior year and $39.7 million for the prior quarter. The second quarter 2012 provision for loan losses was $17.4 million, excluding covered loan provision, down from $31.7 million in the same period prior year and $27.6 million in the prior quarter.

Credit quality results exclude $244.8 million in covered assets as of the end of the second quarter 2012, referring to certain assets acquired through an FDIC-assisted transaction that are subject to a loss-sharing agreement, compared to $346.5 million in the second quarter 2011 and $276.5 million in the first quarter 2012.

Balance Sheet Total loans were $9.4 billion at June 30, 2012, compared to $9.2 billion at March 31, 2012. The 2 percent growth in total loans this quarter was primarily from new commercial and industrial relationships, while revolver usage has remained flat over the last several quarters. The Company funded $430.3 million in loans to new relationships during the second quarter 2012.

Commercial and industrial loans continued to grow from March 31, 2012, and comprised 63 percent of the total loan portfolio at June 30, 2012. Total assets were $12.9 billion at June 30, 2012, up from $12.6 billion at March 31, 2012.

Total deposits were $10.7 billion at June 30, 2012, up from $10.4 billion at March 31, 2012. Non-interest bearing deposits comprised 27 percent of total deposits at June 30, 2012, compared to 29 percent of total deposits at March 31, 2012. Brokered deposits were $1.5 billion, or 14 percent of total deposits, at June 30, 2012, as compared to $1.0 billion, or 9 percent of total deposits, at March 31, 2012.

The Company's investment securities portfolio was $2.4 billion at June 30, 2012, compared to $2.3 billion at March 31, 2012. The securities portfolio is primarily comprised of U.S. government agency backed mortgage pools, agency collateralized mortgage obligations, and investment grade municipal bonds.

Capital As of June 30, 2012, the Company's total risk-based capital ratio was 14.12 percent, the Tier 1 risk-based capital ratio was 12.25 percent and the leverage ratio was 11.20 percent. Tier 1 common capital ratio was 8.05 percent and tangible common equity ratio was 7.67 percent at the end of the second quarter 2012.

Quarterly Conference Call and Webcast Presentation PrivateBancorp will host a conference call on Tuesday, July 24, 2012, 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 #93482670. 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 26, 2012, by calling (855) 859-2056 (U.S. and Canada) or (404) 537-3406 (International) and entering passcode # 93482670.

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, 2012, the Company had 34 offices in 9 states and $12.9 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 problem assets 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 other real estate owned which may result in increased losses or higher credit-related operating costs; continued uncertainty regarding U.S. and global economic recovery and economic outlook, and ongoing volatility in market conditions, that may impact credit quality or prolong weakness in demand for loans or other banking products and services; unanticipated withdrawals of significant client deposits; the availability of cost-effective sources of liquidity or funding; the terms and availability of capital to the extent necessary to repay TARP preferred stock or otherwise required; loss of key personnel or an inability to recruit and retain appropriate talent; unanticipated changes in interest rates or significant tightening of credit spreads; increased competitive pricing pressures; uncertainty relating to recently proposed regulatory capital rules that could, depending on the nature of our assets, require us to maintain higher levels of regulatory capital; uncertainty regarding implications of recently adopted or proposed rules and regulations, or those remaining to be proposed in connection with implementation of the Dodd-Frank Act that may negatively affect our revenues or profitability; other legislative, regulatory or accounting changes affecting financial services companies and/or the products and services offered by financial services companies; or failures or disruptions to our data processing or other information or operational systems. Forward-looking statements are subject to risks, assumptions and uncertainties and could be significantly affected by many factors, including those set forth in the "Risk Factors" section of our Form 10-K for the year ended December 31, 2011 as well as those set forth in our subsequent periodic and current reports filed with the SEC. 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 we assume no obligation to update any of these statements in public filings 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.

Editor's Note: Financial highlights attached.

Consolidated Income Statements

(Amounts in thousands except per share data)

Three Months Ended

Six Months Ended

June 30,

June 30,

2012

2011

2012

2011

unaudited

unaudited

unaudited

unaudited

Interest Income

Loans, including fees

$ 105,142

$ 102,391

$ 208,681

$ 208,038

Federal funds sold and other short-term investments

133

399

265

735

Securities:

   Taxable

14,854

15,568

30,234

30,958

   Exempt from Federal income taxes

1,336

1,387

2,636

2,873

   Total interest income

121,465

119,745

241,816

242,604

Interest Expense

Interest-bearing demand deposits

799

587

1,435

1,229

Savings deposits and money market accounts

4,265

6,082

8,867

12,744

Brokered and time deposits

5,394

6,528

10,411

13,220

Short-term borrowings

123

566

265

1,393

Long-term debt

5,538

5,479

11,116

10,962

   Total interest expense

16,119

19,242

32,094

39,548

     Net interest income

105,346

100,503

209,722

203,056

Provision for loan and covered loan losses

17,038

31,093

44,739

68,671

    Net interest income after provision for

loan and covered loan losses

88,308

69,410

164,983

134,385

Non-interest Income

Trust and Investments

4,312

4,720

8,531

9,382

Mortgage banking

2,915

704

5,578

2,106

Capital markets products

6,033

3,871

13,382

8,360

Treasury management

5,260

4,453

10,414

8,778

Loan and credit-related fees

6,372

5,290

12,899

11,188

Deposit service charges and fees and other income

1,644

1,884

3,131

4,368

Net securities (losses) gains

(290)

670

(185)

1,037

   Total non-interest income

26,246

21,592

53,750

45,219

Non-interest Expense

Salaries and employee benefits

42,177

38,636

84,875

77,193

Net occupancy expense

7,653

7,545

15,332

15,077

Technology and related costs

3,273

2,729

6,569

5,390

Marketing

3,058

2,500

5,218

4,443

Professional services

2,247

2,312

4,204

4,646

Outsourced servicing costs

2,093

1,852

3,803

4,006

Net foreclosed property expenses

11,894

7,485

20,129

13,791

Postage, telephone, and delivery

882

931

1,751

1,819

Insurance

4,239

5,092

8,544

12,432

Loan and collection expense

2,918

4,247

6,075

6,800

Other expenses

3,424

2,335

7,587

5,416

   Total non-interest expense

83,858

75,664

164,087

151,013

Income before income taxes

30,696

15,338

54,646

28,591

Income tax provision

13,192

6,320

22,887

8,599

   Net income

17,504

9,018

31,759

19,992

Net income attributable to noncontrolling interests

-

58

-

130

   Net income attributable to controlling interests

17,504

8,960

31,759

19,862

Preferred stock dividends and discount accretion

3,442

3,419

6,878

6,834

   Net income available to common stockholders

$ 14,062

$ 5,541

$ 24,881

$ 13,028

Per Common Share Data

Basic earnings per share

$ 0.19

$ 0.08

$ 0.35

$ 0.18

Diluted earnings per share

$ 0.19

$ 0.08

$ 0.34

$ 0.18

Cash dividends declared

$ 0.01

$ 0.01

$ 0.02

$ 0.02

Weighted-average common shares outstanding

70,956

70,428

70,868

70,388

Weighted-average diluted common shares outstanding

71,147

70,663

71,041

70,602

Note 1: 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)

2Q12

1Q12

4Q11

3Q11

2Q11

Interest Income

Loans, including fees

$ 105,142

$ 103,539

$ 102,897

$ 102,174

$ 102,391

Federal funds sold and other short-term investments

133

132

215

231

399

Securities:

   Taxable

14,854

15,380

15,263

15,196

15,568

   Exempt from Federal income taxes

1,336

1,300

1,273

1,293

1,387

   Total interest income

121,465

120,351

119,648

118,894

119,745

Interest Expense

Interest-bearing demand deposits

799

636

585

625

587

Savings deposits and money market accounts

4,265

4,602

4,857

5,356

6,082

Brokered and time deposits

5,394

5,017

5,561

5,895

6,528

Short-term borrowings

123

142

152

466

566

Long-term debt

5,538

5,578

5,511

5,463

5,479

   Total interest expense

16,119

15,975

16,666

17,805

19,242

    Net interest income

105,346

104,376

102,982

101,089

100,503

Provision for loan and covered loan losses

17,038

27,701

31,611

32,615

31,093

   Net interest income after provision for

loan and covered loan losses

88,308

76,675

71,371

68,474

69,410

Non-interest Income

Trust and Investments

4,312

4,219

3,992

4,452

4,720

Mortgage banking

2,915

2,663

3,032

1,565

704

Capital markets products

6,033

7,349

5,471

5,510

3,871

Treasury management

5,260

5,154

4,813

4,590

4,453

Loan and credit-related fees

6,372

6,527

5,606

5,413

5,290

Deposit service charges and fees and other income

1,644

1,487

2,115

1,735

1,884

Net securities (losses) gains

(290)

105

364

4,370

670

   Total non-interest income

26,246

27,504

25,393

27,635

21,592

Non-interest Expense

Salaries and employee benefits

42,177

42,698

40,729

38,841

38,636

Net occupancy expense

7,653

7,679

7,394

7,515

7,545

Technology and related costs

3,273

3,296

3,142

2,856

2,729

Marketing

3,058

2,160

2,250

2,218

2,500

Professional services

2,247

1,957

2,126

2,434

2,312

Outsourced servicing costs

2,093

1,710

2,077

1,918

1,852

Net foreclosed property expenses

11,894

8,235

6,862

7,129

7,485

Postage, telephone, and delivery

882

869

953

944

931

Insurance

4,239

4,305

3,462

5,393

5,092

Loan and collection expense

2,918

3,157

3,840

2,931

4,247

Other expenses

3,424

4,163

3,395

2,855

2,335

   Total non-interest expense

83,858

80,229

76,230

75,034

75,664

Income before income taxes

30,696

23,950

20,534

21,075

15,338

Income tax provision

13,192

9,695

9,468

7,593

6,320

   Net income

17,504

14,255

11,066

13,482

9,018

Net income attributable to noncontrolling interests

-

-

7

33

58

   Net income attributable to controlling interests

17,504

14,255

11,059

13,449

8,960

Preferred stock dividends and discount accretion

3,442

3,436

3,430

3,426

3,419

   Net income available to common stockholders

$ 14,062

$ 10,819

$ 7,629

$ 10,023

$ 5,541

Per Common Share Data

Basic earnings per share

$ 0.19

$ 0.15

$ 0.11

$ 0.14

$ 0.08

Diluted earnings per share

$ 0.19

$ 0.15

$ 0.11

$ 0.14

$ 0.08

Cash dividends declared

$ 0.01

$ 0.01

$ 0.01

$ 0.01

$ 0.01

Weighted-average common shares outstanding

70,956

70,780

70,540

70,479

70,428

Weighted-average diluted common shares outstanding

71,147

70,932

70,713

70,621

70,663

Note 1: Certain reclassifications have been made to prior period financial statements to place them on a basis comparable with the current period financial statements.

Consolidated Balance Sheets

(Dollars in thousands)

06/30/12

03/31/12

12/31/11

09/30/11

06/30/11

unaudited

unaudited

audited

unaudited

unaudited

Assets

Cash and due from banks

$ 141,563

$ 166,062

$ 156,131

$ 171,268

$ 160,289

Fed funds sold and other short-term investments

315,378

193,571

205,610

248,559

457,422

Loans held for sale

35,342

29,185

32,049

24,126

13,503

Securities available-for-sale, at fair value

1,625,649

1,705,649

1,783,465

1,872,587

2,057,290

Securities held-to-maturity, at amortized cost

693,277

598,066

490,143

273,200

-

Non-marketable equity investments

47,702

43,882

43,604

43,894

20,406

   Loans - excluding covered assets, net of unearned fees

9,436,235

9,222,253

9,008,561

8,674,955

8,672,642

Allowance for loan losses

(174,302)

(183,844)

(191,594)

(200,041)

(206,286)

Loans, net of allowance for loan losses and unearned fees

9,261,933

9,038,409

8,816,967

8,474,914

8,466,356

   Covered assets

244,782

276,534

306,807

318,973

346,452

Allowance for covered loan losses

(21,733)

(26,323)

(25,939)

(16,689)

(16,904)

Covered assets, net of allowance for covered loan losses

223,049

250,211

280,868

302,284

329,548

Other real estate owned, excluding covered assets

109,836

123,498

125,729

116,364

123,997

Premises, furniture, and equipment, net

38,177

37,462

38,633

39,069

38,171

Accrued interest receivable

37,089

36,033

35,732

32,686

32,128

Investment in bank owned life insurance

51,751

51,356

50,966

50,565

50,183

Goodwill

94,546

94,559

94,571

94,584

94,596

Other intangible assets

14,152

14,683

15,353

15,715

16,089

Capital markets derivative assets

102,613

97,805

101,676

111,248

93,453

Other assets

150,119

142,733

145,373

148,798

161,946

   Total assets

$ 12,942,176

$ 12,623,164

$ 12,416,870

$ 12,019,861

$ 12,115,377

Liabilities

Demand deposits:

   Noninterest-bearing

$ 2,920,182

$ 3,054,536

$ 3,244,307

$ 2,832,481

$ 2,527,230

   Interest-bearing

785,879

714,522

595,238

611,293

531,107

Savings deposits and money market accounts

4,146,022

4,347,832

4,378,220

4,392,697

4,497,297

Brokered deposits

1,484,435

961,481

815,951

902,002

1,342,422

Time deposits

1,398,012

1,344,341

1,359,138

1,370,190

1,336,212

   Total deposits

10,734,530

10,422,712

10,392,854

10,108,663

10,234,268

Short-term borrowings

335,000

355,000

156,000

59,154

63,311

Long-term debt

374,793

379,793

379,793

379,793

409,793

Accrued interest payable

5,855

5,425

5,567

5,841

5,767

Capital markets derivative liabilities

105,773

100,109

104,140

113,968

95,043

Other liabilities

52,071

47,971

81,764

66,266

46,547

   Total liabilities

11,608,022

11,311,010

11,120,118

10,733,685

10,854,729

Equity

Preferred stock - Series B

241,185

240,791

240,403

240,020

239,642

Common stock

71,843

71,611

71,483

71,220

71,155

Treasury stock

(22,639)

(21,749)

(21,454)

(20,680)

(20,615)

Additional paid-in capital

978,510

973,417

968,787

965,640

963,156

Retained earnings/(accumulated deficit)

14,268

932

(9,164)

(16,075)

(25,388)

Accumulated other comprehensive income, net of tax

50,987

47,152

46,697

46,051

32,535

   Total stockholders' equity

1,334,154

1,312,154

1,296,752

1,286,176

1,260,485

Noncontrolling interests

-

-

-

-

163

   Total equity

1,334,154

1,312,154

1,296,752

1,286,176

1,260,648

   Total liabilities and equity

$ 12,942,176

$ 12,623,164

$ 12,416,870

$ 12,019,861

$ 12,115,377

Selected Financial Data

Unaudited

(Amounts in thousands except per share data)

2Q12

1Q12

4Q11

3Q11

2Q11

Selected Statement of Income Data:

Net interest income

$ 105,346

$ 104,376

$ 102,982

$ 101,089

$ 100,503

Net revenue (1) (2)

$ 132,291

$ 132,560

$ 129,046

$ 129,404

$ 122,811

Operating profit (1) (2)

$ 48,433

$ 52,331

$ 52,816

$ 54,370

$ 47,147

Provision for loan and covered loan losses

$ 17,038

$ 27,701

$ 31,611

$ 32,615

$ 31,093

Income before taxes

$ 30,696

$ 23,950

$ 20,534

$ 21,075

$ 15,338

Net income available to common stockholders

$ 14,062

$ 10,819

$ 7,629

$ 10,023

$ 5,541

Per Common Share Data:

Basic earnings per share

$ 0.19

$ 0.15

$ 0.11

$ 0.14

$ 0.08

Diluted earnings per share

$ 0.19

$ 0.15

$ 0.11

$ 0.14

$ 0.08

Dividends declared

$ 0.01

$ 0.01

$ 0.01

$ 0.01

$ 0.01

Book value (period end) (1)

$ 15.09

$ 14.79

$ 14.72

$ 14.57

$ 14.22

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

$ 13.59

$ 13.29

$ 13.19

$ 13.04

$ 12.68

Market value (close)

$ 14.76

$ 15.17

$ 10.98

$ 7.52

$ 13.80

Book value multiple

0.98

x

1.03

x

0.75

x

0.52

x

0.97

x

Share Data:

Weighted-average common shares outstanding

70,956

70,780

70,540

70,479

70,428

Diluted-average common shares outstanding

71,147

70,932

70,713

70,621

70,663

Common shares issued (at period end)

73,273

73,205

72,514

72,491

72,497

Common shares outstanding (at period end)

72,424

72,415

71,745

71,789

71,808

Performance Ratios:

Return on average assets

0.55%

0.46%

0.36%

0.44%

0.29%

Return on average common equity

5.18%

4.04%

2.86%

3.80%

2.18%

Net interest margin (1) (2)

3.46%

3.53%

3.48%

3.49%

3.36%

Fee revenue as a percent of total revenue (1)

20.12%

20.79%

19.55%

18.71%

17.23%

Non-interest income to average assets

0.83%

0.89%

0.82%

0.91%

0.69%

Non-interest expense to average assets

2.64%

2.59%

2.45%

2.46%

2.43%

Net overhead ratio (1)

1.81%

1.70%

1.64%

1.56%

1.74%

Efficiency ratio(1) (2)

63.39%

60.52%

59.07%

57.98%

61.61%

Selected Information:

Assets under management and administration (AUMA) (1)

$ 4,738,973

$ 4,879,947

$ 4,303,547

$ 4,161,614

$ 4,395,516

Custody assets included in AUMA

$ 2,073,777

$ 2,060,455

$ 1,599,528

$ 1,525,001

$ 1,623,190

Credit valuation adjustment on capital markets

derivatives(1)

$ (830)

$ 19

$ 244

$ (1,207)

$ (573)

Balance Sheet Ratios:

Loans to deposits (period end)(3)

87.91%

88.48%

86.68%

85.82%

84.74%

Average interest-earning assets to average interest-

bearing liabilities

146.44%

149.68%

150.70%

145.30%

139.77%

Capital Ratios (period end):

Total risk-based capital (1)

14.12%

14.20%

14.28%

14.82%

15.12%

Tier 1 risk-based capital (1)

12.25%

12.31%

12.38%

12.89%

12.95%

Leverage(1)

11.20%

11.35%

11.33%

11.48%

11.00%

Tier 1 common capital (1) (2)

8.05%

8.04%

8.04%

8.34%

8.34%

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

7.67%

7.69%

7.69%

7.86%

7.58%

Total equity to total assets

10.31%

10.39%

10.44%

10.70%

10.41%

(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.

SOURCE PrivateBancorp, Inc.



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