PrivateBancorp Reports First Quarter Earnings

Net Income Up 57 Percent Over First Quarter 2000



Apr 23, 2001, 01:00 ET from PrivateBancorp, Inc.

    CHICAGO, April 23 /PRNewswire Interactive News Release/ -- PrivateBancorp,
 Inc. (Nasdaq:   PVTB) today reported that net income for the first quarter ended
 March 31, 2001, was $1,333,000 up 57.0 percent, compared to the first quarter
 2000 net income of $849,000. According to Ralph B. Mandell, Chairman,
 President and CEO, the increase in earnings is attributable to a strong
 performance in the Company's core private banking business. Earnings increased
 to $0.28 per diluted share in the first quarter 2001 compared to $0.18 per
 diluted share in the first quarter 2000.
     "Compared to prior year, our earnings growth is the result of strategies
 put in place during the past 24 months, including the opening of our St.
 Charles office, the acquisition of the Lake Forest and Winnetka North Shore
 locations, and the opening of our St. Louis, Missouri bank.  We are pleased
 with our progress and look forward to continued growth in assets and earnings
 for the remainder of the year as compared to prior year," said Mandell. "Our
 net interest margin narrowed during the quarter, due to the competitive
 environment, decreases in market interest rates and the composition of both
 earning assets and interest-bearing liabilities.  However, overall asset
 growth, continued high credit quality and significant increases in non-
 interest income compared to the prior year quarter, more than compensated for
 lower margins."
     Net interest income totaled $6.5 million in the first quarter of 2001, an
 increase of 32.0 percent over the first quarter of 2000.  Average earning
 assets during the period were $800.5 million, an increase of 39.8 percent over
 the prior year first quarter. Net interest margin averaged 3.35 percent in the
 first quarter of 2001, versus 3.59 percent in the prior year first quarter.
 The decrease in net interest margin during the quarter is attributable to the
 decrease in the prime interest rate as well as to the issuance of fixed rate
 long-term debt trust preferred securities.
     Non-interest income for the quarter grew to $1,080,000, reflecting an
 increase of $358,000 or 49.6 percent higher than in the first quarter of 2000.
 Banking income, comprised of service charges, increased to $200,000 from
 $87,500 a year ago quarter, which represents a 128.7 percent increase. Trust
 assets under administration decreased 13.2 percent to $693.2 million at
 March 31, 2001 compared to $799.0 million at March 31, 2000 attributable
 primarily to market declines affecting portfolio equity values.  Despite the
 decline in the level of trust assets under administration, trust fee revenue
 increased by $152,000 to $691,000 for the quarter ended March 31, 2001, an
 increase of 28.2 percent over the prior year quarter that resulted primarily
 from an improvement in the mix of more profitable trust accounts.
     The increase in non-interest income is also attributable to the
 recognition of $186,000 of net gains related to the sale of investment
 securities during the first quarter of 2001 as compared to $92,000 during the
 first quarter of 2000.  According to PrivateBancorp, Inc. Chief Financial
 Officer Gary L. Svec, the Company was able to take advantage of market
 volatility during the first quarter to achieve interest rate risk management
 objectives, realize gains on investments, and purchase investment securities
 with enhanced return opportunities.
     Non-interest expense increased to $5.3 million in the first quarter of
 2001 from $4.0 million in the first quarter of 2000, due to higher operating
 and personnel expenses associated with a full quarter of operations in the
 North Shore locations and being fully operational in St. Louis.  The Company's
 efficiency ratio improved to 67.8 percent for the first quarter 2001 as
 compared to the 69.2 percent for the first quarter 2000 reflecting the
 stabilization of start-up expenses related to the Company's expansion.
     Loans outstanding increased to $626.9 million at March 31, 2001 reflecting
 growth of 20.3 percent over the $521.2 million in loans outstanding at
 March 31, 2000.  At March 31, 2001, nonperforming loans as a percentage of
 total loans were 0.47 percent, versus 0.30 percent at March 31, 2000.
 Recoveries totaled $8,000 in the quarter ended March 31, 2001 versus net
 charge-offs of $15,000 in the year-earlier period. The provision for loan
 losses was $339,000 in the first quarter of 2001, versus  $311,000 in the
 first quarter of 2000.
     PrivateBancorp, Inc. was organized in 1989 to provide highly personalized
 financial services primarily to affluent individuals, professionals, owners of
 closely held businesses and commercial real estate investors.  The company
 operates two banking subsidiaries, The PrivateBank and Trust Company and The
 PrivateBank (St. Louis).  The Company, which had assets of $873.7 million at
 March 31, 2001, currently has banking offices in Chicago, Wilmette, Oak Brook,
 St. Charles, Lake Forest, and Winnetka, Illinois, and St. Louis, Missouri.
 
     Forward-Looking Statements: Statements contained in this news release that
 are not historical facts may constitute forward-looking statements within the
 meaning of Section 21E of the Securities Exchange Act of 1934, as amended.
 The Company's ability to predict results or the actual effect of future plans
 or strategies is inherently uncertain.  Factors which could have a material
 adverse effect on the operations and future prospects of the Company include,
 but are not limited to, fluctuations in market rates of interest and loan and
 deposit pricing, general economic conditions in the greater Chicago and
 St. Louis metropolitan areas, legislative or regulatory changes, adverse
 developments in the Company's loan or investment portfolios, competition,
 competition and the possible dilutive effect of potential acquisitions or
 expansion. These risks and uncertainties should be considered in evaluating
 forward- looking statements and undue reliance should not be placed on such
 statements.
 
 
                              PrivateBancorp, Inc.
                       Consolidated Statements of Income
            (unaudited, dollars in thousands except per share data)
 
                                                        Three Months Ended
                                                              March 31,
                                                        2001          2000
     Interest Income
     Interest and Fees on Loans                       $13,061         $9,475
     Interest on Short Term Investments                   177            387
     Interest on Investment Securities                  3,202          1,385
     Total Interest Income                            $16,440        $11,247
 
     Interest Expense
     Interest on Deposits                              $8,203         $6,055
     Interest on Borrowings                             1,507            296
     Interest on Trust Preferred Securities               269             --
     Total Interest Expense                            $9,979         $6,351
 
     Net Interest Income                               $6,461         $4,896
     Provision for Loan Losses                            339            311
     Net Interest Income after Provision               $6,122         $4,585
 
     Non interest Income
     Banking and Trust Services                          $894           $630
     Securities (Losses) Gains                            186             92
     Total Non interest Income                         $1,080           $722
 
     Non interest Expense
     Salaries and Benefits                             $2,434         $1,877
     Other Operating Expenses                           2,653          2,047
     Amortization of Goodwill                             206            113
     Total Non interest Expense                        $5,293         $4,037
 
     Income before Income Taxes                        $1,909         $1,270
     Income Tax Expense                                   576            421
     Net Income                                        $1,333           $849
 
     Weighted Average Shares O/S                    4,648,061      4,590,332
     Diluted Average Shares O/S                     4,783,400      4,777,351
 
     Earnings Per Share
     Basic                                              $0.29          $0.18
     Diluted                                            $0.28          $0.18
 
 
                              PrivateBancorp, Inc.
                          Consolidated Balance Sheets
                       (unaudited, dollars in thousands)
 
                                                      March 31,     March 31,
                                                        2001           2000
     Assets
     Cash and Due from Banks                          $18,045        $16,629
     Short Term Investments                                81         10,632
     Investment Securities-AFS                        210,840         89,924
 
     Loans, net of unearned income                    626,900        521,188
     Allowance for Loan Losses                         (6,455)        (5,670)
     Net Loans                                       $620,445       $515,518
 
     Premises and Equipment                            $3,924         $3,211
     Goodwill                                          11,423         12,237
     Other Assets                                       8,935          8,830
     Total Assets                                    $873,693       $656,981
 
     Liabilities
     Non-Interest Bearing Deposits                    $52,286        $51,451
     Interest Bearing Deposits                        643,285        527,106
     Total Deposits                                  $695,571       $578,557
 
     Borrowings                                       $90,397        $23,328
     Long Term Debt -
     Trust Preferred Securities                        20,000             --
     Other Liabilities                                 10,779          6,598
     Total Liabilities                               $816,747       $608,483
 
     Stockholders' Equity
     Common Stock and Surplus                         $45,332        $44,351
     Retained Earnings                                 12,604          8,159
     Accumulated Other Comprehensive Income             1,011         (2,292)
     Deferred Compensation                             (1,051)          (695)
     Loans to Executive Officers                         (950)        (1,025)
     Total Stockholders' Equity                       $56,946        $48,498
 
     Total Liabilities and
       Stockholders' Equity                          $873,693       $656,981
 
     Book Value Per Share                              $12.15         $10.57
 
 
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SOURCE PrivateBancorp, Inc.
    CHICAGO, April 23 /PRNewswire Interactive News Release/ -- PrivateBancorp,
 Inc. (Nasdaq:   PVTB) today reported that net income for the first quarter ended
 March 31, 2001, was $1,333,000 up 57.0 percent, compared to the first quarter
 2000 net income of $849,000. According to Ralph B. Mandell, Chairman,
 President and CEO, the increase in earnings is attributable to a strong
 performance in the Company's core private banking business. Earnings increased
 to $0.28 per diluted share in the first quarter 2001 compared to $0.18 per
 diluted share in the first quarter 2000.
     "Compared to prior year, our earnings growth is the result of strategies
 put in place during the past 24 months, including the opening of our St.
 Charles office, the acquisition of the Lake Forest and Winnetka North Shore
 locations, and the opening of our St. Louis, Missouri bank.  We are pleased
 with our progress and look forward to continued growth in assets and earnings
 for the remainder of the year as compared to prior year," said Mandell. "Our
 net interest margin narrowed during the quarter, due to the competitive
 environment, decreases in market interest rates and the composition of both
 earning assets and interest-bearing liabilities.  However, overall asset
 growth, continued high credit quality and significant increases in non-
 interest income compared to the prior year quarter, more than compensated for
 lower margins."
     Net interest income totaled $6.5 million in the first quarter of 2001, an
 increase of 32.0 percent over the first quarter of 2000.  Average earning
 assets during the period were $800.5 million, an increase of 39.8 percent over
 the prior year first quarter. Net interest margin averaged 3.35 percent in the
 first quarter of 2001, versus 3.59 percent in the prior year first quarter.
 The decrease in net interest margin during the quarter is attributable to the
 decrease in the prime interest rate as well as to the issuance of fixed rate
 long-term debt trust preferred securities.
     Non-interest income for the quarter grew to $1,080,000, reflecting an
 increase of $358,000 or 49.6 percent higher than in the first quarter of 2000.
 Banking income, comprised of service charges, increased to $200,000 from
 $87,500 a year ago quarter, which represents a 128.7 percent increase. Trust
 assets under administration decreased 13.2 percent to $693.2 million at
 March 31, 2001 compared to $799.0 million at March 31, 2000 attributable
 primarily to market declines affecting portfolio equity values.  Despite the
 decline in the level of trust assets under administration, trust fee revenue
 increased by $152,000 to $691,000 for the quarter ended March 31, 2001, an
 increase of 28.2 percent over the prior year quarter that resulted primarily
 from an improvement in the mix of more profitable trust accounts.
     The increase in non-interest income is also attributable to the
 recognition of $186,000 of net gains related to the sale of investment
 securities during the first quarter of 2001 as compared to $92,000 during the
 first quarter of 2000.  According to PrivateBancorp, Inc. Chief Financial
 Officer Gary L. Svec, the Company was able to take advantage of market
 volatility during the first quarter to achieve interest rate risk management
 objectives, realize gains on investments, and purchase investment securities
 with enhanced return opportunities.
     Non-interest expense increased to $5.3 million in the first quarter of
 2001 from $4.0 million in the first quarter of 2000, due to higher operating
 and personnel expenses associated with a full quarter of operations in the
 North Shore locations and being fully operational in St. Louis.  The Company's
 efficiency ratio improved to 67.8 percent for the first quarter 2001 as
 compared to the 69.2 percent for the first quarter 2000 reflecting the
 stabilization of start-up expenses related to the Company's expansion.
     Loans outstanding increased to $626.9 million at March 31, 2001 reflecting
 growth of 20.3 percent over the $521.2 million in loans outstanding at
 March 31, 2000.  At March 31, 2001, nonperforming loans as a percentage of
 total loans were 0.47 percent, versus 0.30 percent at March 31, 2000.
 Recoveries totaled $8,000 in the quarter ended March 31, 2001 versus net
 charge-offs of $15,000 in the year-earlier period. The provision for loan
 losses was $339,000 in the first quarter of 2001, versus  $311,000 in the
 first quarter of 2000.
     PrivateBancorp, Inc. was organized in 1989 to provide highly personalized
 financial services primarily to affluent individuals, professionals, owners of
 closely held businesses and commercial real estate investors.  The company
 operates two banking subsidiaries, The PrivateBank and Trust Company and The
 PrivateBank (St. Louis).  The Company, which had assets of $873.7 million at
 March 31, 2001, currently has banking offices in Chicago, Wilmette, Oak Brook,
 St. Charles, Lake Forest, and Winnetka, Illinois, and St. Louis, Missouri.
 
     Forward-Looking Statements: Statements contained in this news release that
 are not historical facts may constitute forward-looking statements within the
 meaning of Section 21E of the Securities Exchange Act of 1934, as amended.
 The Company's ability to predict results or the actual effect of future plans
 or strategies is inherently uncertain.  Factors which could have a material
 adverse effect on the operations and future prospects of the Company include,
 but are not limited to, fluctuations in market rates of interest and loan and
 deposit pricing, general economic conditions in the greater Chicago and
 St. Louis metropolitan areas, legislative or regulatory changes, adverse
 developments in the Company's loan or investment portfolios, competition,
 competition and the possible dilutive effect of potential acquisitions or
 expansion. These risks and uncertainties should be considered in evaluating
 forward- looking statements and undue reliance should not be placed on such
 statements.
 
 
                              PrivateBancorp, Inc.
                       Consolidated Statements of Income
            (unaudited, dollars in thousands except per share data)
 
                                                        Three Months Ended
                                                              March 31,
                                                        2001          2000
     Interest Income
     Interest and Fees on Loans                       $13,061         $9,475
     Interest on Short Term Investments                   177            387
     Interest on Investment Securities                  3,202          1,385
     Total Interest Income                            $16,440        $11,247
 
     Interest Expense
     Interest on Deposits                              $8,203         $6,055
     Interest on Borrowings                             1,507            296
     Interest on Trust Preferred Securities               269             --
     Total Interest Expense                            $9,979         $6,351
 
     Net Interest Income                               $6,461         $4,896
     Provision for Loan Losses                            339            311
     Net Interest Income after Provision               $6,122         $4,585
 
     Non interest Income
     Banking and Trust Services                          $894           $630
     Securities (Losses) Gains                            186             92
     Total Non interest Income                         $1,080           $722
 
     Non interest Expense
     Salaries and Benefits                             $2,434         $1,877
     Other Operating Expenses                           2,653          2,047
     Amortization of Goodwill                             206            113
     Total Non interest Expense                        $5,293         $4,037
 
     Income before Income Taxes                        $1,909         $1,270
     Income Tax Expense                                   576            421
     Net Income                                        $1,333           $849
 
     Weighted Average Shares O/S                    4,648,061      4,590,332
     Diluted Average Shares O/S                     4,783,400      4,777,351
 
     Earnings Per Share
     Basic                                              $0.29          $0.18
     Diluted                                            $0.28          $0.18
 
 
                              PrivateBancorp, Inc.
                          Consolidated Balance Sheets
                       (unaudited, dollars in thousands)
 
                                                      March 31,     March 31,
                                                        2001           2000
     Assets
     Cash and Due from Banks                          $18,045        $16,629
     Short Term Investments                                81         10,632
     Investment Securities-AFS                        210,840         89,924
 
     Loans, net of unearned income                    626,900        521,188
     Allowance for Loan Losses                         (6,455)        (5,670)
     Net Loans                                       $620,445       $515,518
 
     Premises and Equipment                            $3,924         $3,211
     Goodwill                                          11,423         12,237
     Other Assets                                       8,935          8,830
     Total Assets                                    $873,693       $656,981
 
     Liabilities
     Non-Interest Bearing Deposits                    $52,286        $51,451
     Interest Bearing Deposits                        643,285        527,106
     Total Deposits                                  $695,571       $578,557
 
     Borrowings                                       $90,397        $23,328
     Long Term Debt -
     Trust Preferred Securities                        20,000             --
     Other Liabilities                                 10,779          6,598
     Total Liabilities                               $816,747       $608,483
 
     Stockholders' Equity
     Common Stock and Surplus                         $45,332        $44,351
     Retained Earnings                                 12,604          8,159
     Accumulated Other Comprehensive Income             1,011         (2,292)
     Deferred Compensation                             (1,051)          (695)
     Loans to Executive Officers                         (950)        (1,025)
     Total Stockholders' Equity                       $56,946        $48,498
 
     Total Liabilities and
       Stockholders' Equity                          $873,693       $656,981
 
     Book Value Per Share                              $12.15         $10.57
 
 
                     MAKE YOUR OPINION COUNT -  Click Here
                http://tbutton.prnewswire.com/prn/11690X61480627
 
 SOURCE  PrivateBancorp, Inc.