PrivateBancorp Reports First Quarter 2015 Earnings

Earnings per share of $0.52 for the first quarter 2015, compared to $0.44 for the first quarter 2014 and $0.47 for the fourth quarter 2014

News provided by

PrivateBancorp, Inc.

Apr 16, 2015, 07:30 ET

CHICAGO, April 16, 2015 /PRNewswire/ -- PrivateBancorp, Inc. (NASDAQ: PVTB) today reported net income of $41.5 million, or $0.52 per diluted share, for the first quarter 2015, compared to $34.5 million, or $0.44 per diluted share, for the first quarter 2014, and $37.2 million, or $0.47 per diluted share, for the fourth quarter 2014.

"I am pleased with our start to the year as we leverage the momentum we have built in our business," said Larry D. Richman, President and Chief Executive Officer, PrivateBancorp, Inc. "Through our consistent execution, we delivered another quarter of strong results for our shareholders. First quarter net income increased 20 percent year over year to $41 million, largely driven by client loan growth in our commercial and industrial portfolio as well as the gain we realized from the sale of our branch in Georgia.

"Our solid loan growth helped boost net interest income by 12 percent from the first quarter last year, which led to a 15 percent increase in net revenue to $156 million," Richman continued. "We are well-positioned to continue to add new client relationships and do more for our existing clients in 2015 as we build on our differentiated commercial banking model."

First Quarter 2015 Highlights

Total loans grew to $12.2 billion, up $1.2 billion from a year ago and $278.3 million from December 31, 2014, primarily driven by growth in commercial and industrial loans.
Total deposits were $14.1 billion at March 31, 2015, up $2.2 billion from a year ago, and $1.0 billion from December 31, 2014. Average deposits increased $1.6 billion from a year ago and $210.0 million from the previous quarter.
Net interest margin was 3.21 percent, compared to 3.23 percent for the first quarter 2014 and 3.07 percent for the fourth quarter 2014. The current quarter reflected the full benefit of the fourth quarter's redemption of trust preferred securities.
Operating profit of $73.3 million for the first quarter 2015 included seasonally higher benefits expense and a gain on sale of the Norcross, Ga., branch. Excluding the one-time gain on sale, operating profit increased 15 percent from the first quarter 2014 and 6 percent from the fourth quarter 2014, primarily reflecting continued growth in earning assets.
Return on average assets was 1.07 percent and return on average common equity was 11.05 percent for the first quarter 2015. In comparison, return on average assets was 0.95 percent and return on average common equity was 10.0 percent for the fourth quarter 2014.

Operating Performance

Net interest income was $122.0 million in the first quarter 2015, an increase of 12 percent compared to the first quarter 2014, and up 4 percent compared to the fourth quarter 2014, despite two fewer days in the first quarter. Average loan growth of 13 percent from the first quarter 2014 and 3 percent from the fourth quarter 2014, as well as a full-quarter's benefit from the fourth quarter 2014 trust preferred securities redemption, positively impacted net interest income.

Net interest margin was 3.21 percent in the first quarter 2015, compared to 3.23 percent in the first quarter 2014 and 3.07 percent in the fourth quarter 2014. The trust preferred securities redemption lowered borrowing costs and improved net interest margin by seven basis points on a comparative basis. The current quarter also benefited from a higher level of loan fees, including the collection of a one-time fee that contributed three basis points to loan yields. Average cash equivalents declined from the fourth quarter 2014, which benefited net interest margin by three basis points on a comparative basis. Interest-bearing deposit costs were relatively unchanged. Loan pricing remains competitive in the current environment with ongoing yield compression. Contractual loan yields on a total portfolio basis declined two basis points on a sequential basis.

Noninterest income was $33.5 million in the first quarter 2015, compared to $26.2 million for the first quarter 2014 and $30.4 million compared to the fourth quarter 2014. Results for the first quarter 2015 reflected a $4.1 million gain on sale of the Norcross, Ga., branch. Treasury management fees grew to $7.3 million in the first quarter 2015, up 11 percent from the first quarter 2014 and up slightly from the fourth quarter 2014. Continued cross selling to new clients drove higher treasury management volume. Mortgage banking revenue more than doubled from the first quarter 2014 and increased 22 percent from the fourth quarter 2014, as purchase activity increased and a decline in rates during the first quarter 2015 drove an increase in refinancing volume.

Capital markets revenue was up slightly from the first quarter 2014 and down $1.5 million from the fourth quarter 2014. Excluding the impact of the credit valuation adjustment, capital markets revenue was $5.0 million for the first quarter 2015, down from $5.9 million for the fourth quarter 2014, when several larger transactions drove higher interest rate swap volume. The demand for interest rate derivatives continues to be influenced by rate environment expectations. Foreign exchange revenue, which represented 36 percent of capital markets revenue for the first quarter 2015, benefited from several larger transactions, growing 5 percent from the fourth quarter 2014. Syndication fees were $2.6 million for the first quarter 2015, down from $3.3 million for the first quarter 2014 and $3.9 million for the fourth quarter 2014. Syndication fees vary from quarter to quarter depending on the mix of loan originations.

Assets under management and administration (AUMA) were $7.3 billion as of March 31, 2015, compared to $6.0 billion a year ago and $6.6 billion at December 31, 2014. Asset management revenue was $4.4 million in the first quarter 2015, compared to $4.3 million for the first quarter 2014 and $4.2 million for the fourth quarter 2014.

Expenses

Noninterest expense was $83.1 million for the first quarter 2015, compared to $75.8 million for the first quarter 2014 and $83.0 million for the fourth quarter 2014. Salaries and benefits expense increased $7.7 million from the first quarter 2014 and $5.6 million from the fourth quarter 2014. First-quarter salaries and benefits expense included seasonally higher payroll taxes attributable to incentive compensation payments and higher benefits expenses during the period. Additional hires made throughout 2014, annual salary adjustments, and a higher bonus accrual contributed to increased compensation expense compared to the prior-year period.

Other expenses declined $3.9 million on a sequential basis, as the fourth quarter 2014 included $1.6 million of office relocation costs and a higher provision related to unfunded commitments. Unfunded commitments at March 31, 2015, increased 3 percent from year-end, primarily related to growth in commercial and industrial commitments. The provision for unfunded commitments declined to $376,000 for the first quarter 2015, compared to $496,000 for the first quarter 2014 and $2.5 million for the fourth quarter 2014. Net foreclosed property expense declined 53 percent compared to the first quarter 2014, reflecting a lower amount of writedowns and carrying costs on a reduced amount of foreclosed property (OREO).

The efficiency ratio was 53.1 percent for the first quarter 2015, compared to 55.8 percent for the first quarter 2014 and 56.0 percent for the fourth quarter 2014. For the full year 2014, the efficiency ratio was 54.2 percent.

Credit Quality

The allowance for loan losses as a percentage of total loans was 1.29 percent at March 31, 2015, comparable to December 31, 2014. The provision for loan losses was $5.5 million for the first quarter 2015, compared to $4.0 million for the fourth quarter 2014 and $3.4 million for the first quarter 2014. Net charge-offs to average loans were 0.05 percent for the first quarter 2015, consistent with the fourth quarter 2014.

Nonperforming assets were 0.53 percent of total assets at March 31, 2015, down from 0.82 percent at March 31, 2014, and comparable to December 31, 2014. At March 31, 2015, nonperforming loans were $71.0 million, compared to $93.8 million at March 31, 2014, and $67.5 million at December 31, 2014. OREO of $15.6 million at March 31, 2015, declined $7.9 million from March 31, 2014, and $1.8 million from December 31, 2014.

Credit quality results exclude covered assets acquired through an FDIC-assisted transaction that are subject to a loss sharing agreement.

Balance Sheet

Total assets grew to $16.4 billion at March 31, 2015, compared to $14.3 billion at March 31, 2014, and $15.6 billion at December 31, 2014. Total loans of $12.2 billion increased 11 percent from March 31, 2014, and 2 percent from December 31, 2014, primarily driven by growth in commercial and industrial loans. At March 31, 2015, total commercial loans comprised 67 percent of total loans, and commercial real estate and construction represented 27 percent of total loans.

The Company's investment securities portfolio was $2.8 billion at March 31, 2015, up 7 percent from March 31, 2014, and consistent with December 31, 2014. Cash and cash equivalents were $958.4 million at March 31, 2015 and reflected deposit growth, compared to $351.1 million at March 31, 2014, and $424.6 million at December 31, 2014.

Total liabilities were $14.8 billion at March 31, 2015, up compared to $13.0 billion at March 31, 2014, and $14.1 billion compared to December 31, 2014. Total deposits were $14.1 billion at March 31, 2015, increasing 19 percent from March 31, 2014, and 8 percent from December 31, 2014. Deposit balances of commercial clients fluctuate based on their cash management and liquidity needs. Transactional inflows relating to several commercial clients contributed to the deposit growth in the first quarter 2015, a meaningful portion of which was subsequently redeployed by the clients. At March 31, 2015, the loan-to-deposit ratio was 86 percent, compared to 92 percent as of March 31, 2014, and 91 percent as of December 31, 2014.

Capital

As of March 31, 2015, the total risk-based capital ratio was 12.29 percent, the Tier 1 risk-based capital ratio was 10.34 percent, and the leverage ratio was 10.16 percent. The Tier 1 common capital ratio was 9.23 percent and the tangible common equity ratio was 8.86 percent at the end of the first quarter 2015. These capital ratios are calculated in accordance with the new capital rules that became effective on January 1, 2015.

Quarterly Conference Call and Webcast Presentation

PrivateBancorp will host a conference call Thursday, April 16, 2015, 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 #8210528. A live webcast of the call can be accessed on the Company website at: investor.theprivatebank.com. A rebroadcast will be available beginning approximately two hours after the call until midnight April 30, 2015, by calling (855) 859-2056 (U.S. and Canada) or (404) 537-3406 (International) and entering passcode #8210528.

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 March 31, 2015, the Company had 34 offices in 11 states and $16.4 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 affect 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 our ability to recruit and retain appropriate talent;
greater-than-anticipated costs to support the growth of our business, including investments in technology, process improvements or other infrastructure enhancements, or greater-than-anticipated compliance costs or regulatory burdens; or
failures or disruptions to, or compromises of, 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, 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)
	1Q15		4Q14		3Q14		2Q14		1Q14
Interest Income
Loans, including fees	$	122,702	$	120,649	$	119,211	$	113,696	$	110,199
Federal funds sold and interest-bearing deposits in banks	261		347		142		139		142
Securities:
Taxable	13,556		13,250		13,370		13,625		13,255
Exempt from Federal income taxes	1,806		1,683		1,529		1,432		1,529
Other interest income	48		49		48		59		33
Total interest income	138,373		135,978		134,300		128,951		125,158
Interest Expense
Interest-bearing demand deposits	1,006		1,026		918		842		942
Savings deposits and money market accounts	4,610		4,623		4,173		4,087		3,974
Time deposits	5,639		5,803		5,723		5,034		4,806
Short-term and secured borrowings	197		143		158		141		196
Long-term debt	4,928		7,507		6,570		6,496		6,488
Total interest expense	16,380		19,102		17,542		16,600		16,406
Net interest income	121,993		116,876		116,758		112,351		108,752
Provision for loan and covered loan losses	5,646		4,120		3,890		327		3,707
Net interest income after provision for loan and covered loan losses	116,347		112,756		112,868		112,024		105,045
Non-interest Income
Asset management	4,363		4,241		4,240		4,440		4,347
Mortgage banking	3,775		3,083		2,904		2,626		1,632
Capital markets products	4,172		5,705		3,253		5,006		4,083
Treasury management	7,327		7,262		6,935		6,676		6,599
Loan, letter of credit and commitment fees	5,106		4,901		4,970		4,806		4,634
Syndication fees	2,622		3,943		6,818		5,440		3,313
Deposit service charges and fees and other income	5,617		1,291		1,546		1,069		1,297
Net securities gains	534		—		3		196		331
Total non-interest income	33,516		30,426		30,669		30,259		26,236
Non-interest Expense
Salaries and employee benefits	52,361		46,746		46,421		44,405		44,620
Net occupancy and equipment expense	7,864		7,947		7,807		7,728		7,776
Technology and related costs	3,421		3,431		3,362		3,205		3,283
Marketing	3,578		3,687		3,752		3,589		2,413
Professional services	2,310		3,471		2,626		2,905		2,759
Outsourced servicing costs	1,680		1,814		1,736		1,850		1,464
Net foreclosed property expenses	1,328		1,456		1,631		2,771		2,823
Postage, telephone, and delivery	862		809		839		927		825
Insurance	3,211		3,455		3,077		3,016		2,903
Loan and collection expense	2,268		2,037		2,099		1,573		1,056
Other expenses	4,262		8,172		4,486		3,496		5,828
Total non-interest expense	83,145		83,025		77,836		75,465		75,750
Income before income taxes	66,718		60,157		65,701		66,818		55,531
Income tax provision	25,234		22,934		25,174		25,994		21,026
Net income available to common stockholders	$	41,484	$	37,223	$	40,527	$	40,824	$	34,505
Per Common Share Data
Basic earnings per share	$	0.53	$	0.48	$	0.52	$	0.52	$	0.44
Diluted earnings per share	$	0.52	$	0.47	$	0.51	$	0.52	$	0.44
Cash dividends declared	$	0.01	$	0.01	$	0.01	$	0.01	$	0.01
Weighted-average common shares outstanding	77,407		77,173		77,110		77,062		76,675
Weighted-average diluted common shares outstanding	78,512		78,122		77,934		77,806		77,417

Consolidated Balance Sheets
(Dollars in thousands)
	3/31/15		12/31/14		9/30/14		6/30/14		3/31/14
	Unaudited		Audited		Unaudited		Unaudited		Unaudited
Assets
Cash and due from banks	$	158,431	$	132,211	$	181,248	$	247,048	$	233,685
Federal funds sold and interest-bearing deposits in banks	799,953		292,341		416,071		160,349		117,446
Loans held-for-sale	89,461		115,161		57,748		80,724		26,262
Securities available-for-sale, at fair value	1,631,237		1,645,344		1,541,754		1,527,747		1,577,406
Securities held-to-maturity, at amortized cost	1,159,853		1,129,285		1,072,002		1,066,216		1,023,214
Federal Home Loan Bank ("FHLB") stock	28,556		28,666		28,666		28,666		30,005
Loans – excluding covered assets, net of unearned fees	12,170,484		11,892,219		11,547,587		11,136,942		10,924,985
Allowance for loan losses	(156,610)		(152,498)		(150,135)		(146,491)		(146,768)
Loans, net of allowance for loan losses and unearned fees	12,013,874		11,739,721		11,397,452		10,990,451		10,778,217
Covered assets	32,191		34,132		65,482		81,047		94,349
Allowance for covered loan losses	(6,021)		(5,191)		(4,485)		(14,375)		(16,571)
Covered assets, net of allowance for covered loan losses	26,170		28,941		60,997		66,672		77,778
Other real estate owned, excluding covered assets	15,625		17,416		17,293		19,823		23,565
Premises, furniture, and equipment, net	38,544		39,143		39,611		40,088		39,556
Accrued interest receivable	41,202		40,531		39,701		36,568		39,273
Investment in bank owned life insurance	55,561		55,207		54,849		54,500		54,184
Goodwill	94,041		94,041		94,041		94,041		94,041
Other intangible assets	5,230		5,885		6,627		7,381		8,136
Derivative assets	56,607		43,062		34,896		47,012		44,528
Other assets	147,003		196,427		147,512		135,118		137,486
Total assets	$	16,361,348	$	15,603,382	$	15,190,468	$	14,602,404	$	14,304,782
Liabilities
Demand deposits:
Noninterest-bearing	$	3,936,181	$	3,516,695	$	3,342,862	$	3,387,424	$	3,103,736
Interest-bearing	1,498,810		1,907,320		1,433,429		1,230,681		1,466,095
Savings deposits and money market accounts	6,156,331		5,171,025		5,368,866		5,033,247		4,786,398
Time deposits	2,510,406		2,494,928		2,704,047		2,584,849		2,529,932
Total deposits	14,101,728		13,089,968		12,849,204		12,236,201		11,886,161
Deposits held-for-sale	—		122,216		128,508		—		—
Short-term and secured borrowings	258,788		432,385		6,563		235,319		333,400
Long-term debt	344,788		344,788		656,793		626,793		627,793
Accrued interest payable	7,004		6,948		6,987		6,282		6,251
Derivative liabilities	26,967		26,767		27,976		35,402		40,522
Other liabilities	82,644		98,631		79,128		64,586		67,409
Total liabilities	14,821,919		14,121,703		13,755,159		13,204,583		12,961,536
Equity
Common stock:
Voting	77,968		77,211		76,858		75,526		75,428
Nonvoting	—		—		285		1,585		1,585
Treasury stock	(5,560)		(53)		(6)		(945)		(1,697)
Additional paid-in capital	1,047,227		1,034,048		1,028,813		1,024,869		1,021,436
Retained earnings	390,247		349,556		313,123		273,380		233,347
Accumulated other comprehensive income, net of tax	29,547		20,917		16,236		23,406		13,147
Total equity	1,539,429		1,481,679		1,435,309		1,397,821		1,343,246
Total liabilities and equity	$	16,361,348	$	15,603,382	$	15,190,468	$	14,602,404	$	14,304,782



Selected Financial Data
(Amounts in thousands, except per share data)
(Unaudited)
	1Q15			4Q14			3Q14			2Q14			1Q14
Selected Statement of Income Data:
Net interest income	$	121,993		$	116,876		$	116,758		$	112,351		$	108,752
Net revenue ⁽¹⁾⁽²⁾	$	156,453		$	148,180		$	148,238		$	143,354		$	135,788
Operating profit ⁽¹⁾⁽²⁾	$	73,308		$	65,155		$	70,402		$	67,889		$	60,038
Provision for loan and covered loan losses	$	5,646		$	4,120		$	3,890		$	327		$	3,707
Income before income taxes	$	66,718		$	60,157		$	65,701		$	66,818		$	55,531
Net income available to common stockholders	$	41,484		$	37,223		$	40,527		$	40,824		$	34,505
Per Common Share Data:
Basic earnings per share	$	0.53		$	0.48		$	0.52		$	0.52		$	0.44
Diluted earnings per share	$	0.52		$	0.47		$	0.51		$	0.52		$	0.44
Dividends declared	$	0.01		$	0.01		$	0.01		$	0.01		$	0.01
Book value (period end)⁽¹⁾	$	19.61		$	18.95		$	18.37		$	17.90		$	17.21
Tangible book value (period end) ⁽¹⁾⁽²⁾	$	18.35		$	17.67		$	17.08		$	16.61		$	15.90
Market value (period end)	$	35.17		$	33.40		$	29.91		$	29.06		$	30.51
Book value multiple (period end)	1.79		x	1.76		x	1.63		x	1.62		x	1.77		x
Share Data:
Weighted-average common shares outstanding	77,407			77,173			77,110			77,062			76,675
Weighted-average diluted common shares outstanding	78,512			78,122			77,934			77,806			77,417
Common shares issued (period end)	78,654			78,180			78,121			78,101			78,108
Common shares outstanding (period end)	78,494			78,178			78,121			78,069			78,049
Performance Ratio:
Return on average common equity	11.05%			10.03%			11.27%			11.88%			10.48%
Return on average assets	1.07%			0.95%			1.09%			1.14%			1.00%
Return on average tangible common equity ⁽¹⁾⁽²⁾	11.94%			10.89%			12.27%			12.97%			11.50%
Net interest margin ⁽¹⁾⁽²⁾	3.21%			3.07%			3.23%			3.21%			3.23%
Fee revenue as a percent of total revenue⁽¹⁾	21.28%			20.66%			20.80%			21.11%			19.24%
Non-interest income to average assets	0.86%			0.78%			0.83%			0.84%			0.76%
Non-interest expense to average assets	2.14%			2.12%			2.09%			2.10%			2.19%
Net overhead ratio⁽¹⁾	1.27%			1.35%			1.27%			1.26%			1.43%
Efficiency ratio ⁽¹⁾⁽²⁾	53.14%			56.03%			52.51%			52.64%			55.79%
Balance Sheet Ratios:
Loans to deposits (period end)⁽³⁾	86.30%			90.85%			89.87%			91.02%			91.91%
Average interest-earning assets to average interest-bearing liabilities	144.69%			145.10%			145.51%			143.72%			143.43%
Capital Ratios (period end):
Total risk-based capital⁽¹⁾	12.29%			12.51%			13.18%			13.41%			13.39%
Tier 1 risk-based capital ⁽¹⁾	10.34%			10.49%			11.12%			11.24%			11.19%
Tier 1 leverage ratio⁽¹⁾	10.16%			9.96%			10.70%			10.63%			10.60%
Tier 1 common equity to risk-weighted assets⁽¹⁾⁽⁴⁾	9.23%			9.33%			9.38%			9.42%			9.33%
Tangible common equity to tangible assets⁽¹⁾⁽²⁾	8.86%			8.91%			8.84%			8.94%			8.74%
Total equity to total assets	9.41%			9.50%			9.45%			9.57%			9.39%


⁽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⁾	Effective January 1, 2015, the Tier 1 common equity to risk-weighted assets ratio became a required regulatory capital measure and as presented for the 2015 period is calculated in accordance with the new capital rules. For prior periods, this ratio was considered a non-U.S. GAAP Financial measure. For the periods prior to January 1, 2015, the Tier 1 common equity to risk-weighted assets ratio contained herein is calculated without giving effect to the final Basel III capital rules. Refer to "Non-U.S. GAAP Financial Measures" for a reconciliation from non-U.S. GAAP to U.S. GAAP for periods prior to 2015.

Selected Financial Data (continued)
(Dollars in thousands)
(Unaudited)
	1Q15		4Q14		3Q14		2Q14		1Q14
Additional Selected Information:
(Increase) decrease credit valuation adjustment on capital markets derivatives ⁽¹⁾	$	(805)	$	(216)	$	486	$	(250)	$	(66)
Salaries and employee benefits:
Salaries and wages	$	27,002	$	26,521	$	26,178	$	25,671	$	24,973
Share-based costs	5,143		4,118		3,872		3,892		3,685
Incentive compensation and commissions	11,062		12,053		12,294		10,493		8,244
Payroll taxes, insurance and retirement costs	9,154		4,054		4,077		4,349		7,718
Total salaries and employee benefits	$	52,361	$	46,746	$	46,421	$	44,405	$	44,620
Loan and collection expense:
Loan origination and servicing expense	$	1,626	$	1,528	$	1,528	$	1,202	$	799
Loan remediation expense	642		509		571		371		257
Total loan and collection expense	$	2,268	$	2,037	$	2,099	$	1,573	$	1,056
Provision (release) for unfunded commitments	$	376	$	2,514	$	481	$	(339)	$	496
Unfunded commitments, excluding covered assets	$	6,229,242	$	6,041,301	$	5,365,042	$	4,957,324	$	4,814,346
Assets under management and administration (AUMA) ⁽¹⁾	$	7,328,192	$	6,645,928	$	6,480,713	$	6,365,962	$	6,043,258
Custody assets included in AUMA	$	3,604,333	$	3,511,996	$	3,319,188	$	3,151,829	$	2,910,234