PrivateBancorp Reports Fourth Quarter and Full Year 2014 Earnings
Earnings per share of $0.47 for the fourth quarter 2014, up 9 percent from the fourth quarter 2013
Earnings per share of $1.94 for the full year 2014, up 24 percent from the prior year
CHICAGO, Jan. 16, 2015 /PRNewswire/ -- PrivateBancorp, Inc. (NASDAQ: PVTB) today reported net income of $37.2 million, or $0.47 per diluted share, for the fourth quarter 2014, compared to $33.7 million, or $0.43 per diluted share, for the fourth quarter 2013, and $40.5 million, or $0.51 per diluted share, for the third quarter 2014. For the year ended December 31, 2014, the Company reported net income of $153.1 million, or $1.94 per diluted share, compared to $122.9 million, or $1.57 per diluted share, for the year ended December 31, 2013.
"Our 2014 results reflect the consistent execution and improving financial performance we expect from the bank we are building," said Larry D. Richman, President and Chief Executive Officer, PrivateBancorp, Inc. "We grew loans, deposits and fee income as we built new client relationships and expanded services to existing clients. Operating profit increased 12 percent as we drove earning assets, increased revenue and improved asset quality year over year, while at the same time making important investments in our business. As a result, net income was up 25 percent compared to 2013, our sixth consecutive year of improving our bottom line results and strengthening our balance sheet.
"We are proud of our 2014 results. As we look into 2015, we believe we are well positioned with momentum to continue to build new relationships and serve our existing clients as they increase investment in their own businesses, to leverage the strengths of our experienced banking teams and to continue to create value for our shareholders."
Fourth Quarter 2014 Highlights
- Total loans increased to $11.9 billion at December 31, 2014, up 12 percent from a year ago and 3 percent from September 30, 2014. Average loans grew $1.3 billion from the fourth quarter 2013 and $382.6 million from the third quarter 2014.
- Total deposits grew to $13.1 billion at December 31, 2014, up 9 percent from December 31, 2013, and 2 percent from September 30, 2014. Average deposits grew $1.2 billion from the fourth quarter 2013 and $789.5 million from the third quarter 2014.
- Net interest margin was 3.07 percent, compared to 3.18 percent for the fourth quarter 2013 and 3.23 percent for the third quarter 2014. Excess liquidity and the net impact of the redemption of the trust preferred securities in the fourth quarter reduced net interest margin by a total of nine basis points compared to the third quarter. A lower level of loan fees and the impact of pricing compression on loan yields drove the remainder of the decline.
- Provision for loan and covered loan losses was $4.1 million, compared to $4.5 million for the fourth quarter 2013 and $3.9 million for the third quarter 2014.
- Net revenue was $148.2 million, consistent with the third quarter 2014 and up 9 percent from the fourth quarter 2013, reflecting continued growth in earning assets offset by the net impact of the trust preferred securities redemption.
- Operating profit was $65.2 million, compared to $60.2 million for the fourth quarter 2013 and $70.4 million from the third quarter 2014. Compared to the third quarter 2014, a $2.0 million higher provision for growth in unfunded commitments and a one-time charge of $1.6 million related to an office relocation contributed to increased expenses in the current quarter.
- Return on average common equity was 10.0 percent and return on average assets was 0.95 percent for the fourth quarter 2014. For the full year 2014, return on average common equity was 10.9 percent, up from 9.8 percent for 2013, and return on average assets was 1.04 percent, up from 0.90 percent for the prior year.
- As of December 31, 2014, approximately $36 million in loans and $122 million in deposits related to retail and small business clients of the Norcross, Ga., branch were considered held-for-sale. The pending branch sale is expected to close early in the first quarter 2015 with an estimated gain on sale of approximately $0.03 to $0.04.
Operating Performance
Net interest income was $116.9 million for the fourth quarter 2014, an increase of 8 percent compared to the fourth quarter 2013, primarily due to growth in average loan balances of 12 percent. Compared to the third quarter 2014, net interest income was relatively unchanged, as average loan growth and interest savings of $1.7 million from the redemption of trust preferred securities in the fourth quarter were offset by $2.4 million in accelerated issuance costs recognized in conjunction with the redemption. The third quarter 2014 also included a one-time success fee, which contributed $900,000 to net interest income.
Net interest margin was 3.07 percent for the fourth quarter 2014, compared to 3.23 percent for the third quarter 2014 and 3.18 percent for the fourth quarter 2013. Excess liquidity negatively impacted net interest margin by seven basis points for the fourth quarter 2014. The interest savings from redemption of the trust preferred securities and the related accelerated issuance costs also reduced the fourth quarter 2014 margin by a net of two basis points. In addition, a decline in loan fees on a sequential basis, partially attributable to the one-time success fee in the previous quarter, impacted net interest margin. Competitive pricing pressures, primarily related to renewals, continue to pressure loan yields. Interest-bearing deposit costs remained steady from the third quarter 2014.
Noninterest income was $30.4 million for the fourth quarter 2014, up $3.7 million compared to the fourth quarter 2013 and down slightly compared to the third quarter 2014. Treasury management fees grew to $7.3 million in the fourth quarter 2014, up 15 percent from the fourth quarter 2013 and 5 percent from the third quarter 2014, largely due to new accounts, as well as higher volume from existing relationships. Syndication fees were $3.9 million, up $1.8 million compared to the fourth quarter 2013 and down $2.9 million compared to the third quarter 2014, as the fourth quarter has traditionally tended to be slower than the third quarter.
Capital markets revenue for the fourth quarter 2014 was comparable to the fourth quarter 2013 and up $2.5 million from the third quarter 2014. Excluding the impact of the credit valuation adjustment, capital markets revenue was $5.9 million for the fourth quarter 2014, compared to $5.1 million for the fourth quarter 2013 and $2.8 million for the third quarter 2014, as the current quarter benefited from higher swap volume, which included several large transactions. Mortgage banking revenue of $3.1 million was up from $1.9 million for the fourth quarter 2013, reflecting a higher volume of mortgage loans sold during the current quarter.
Asset management revenue was $4.2 million in the fourth quarter 2014, compared to $4.6 million for the fourth quarter 2013 and $4.2 million for the third quarter 2014. The fourth quarter 2013 included fees generated by the investment management subsidiary sold at the end of 2013. Assets under management and administration were $6.6 billion as of December 31, 2014, compared to $5.7 billion a year ago and $6.5 billion at September 30, 2014.
Expenses
Noninterest expense was $83.0 million for the fourth quarter 2014, compared to $75.8 million for the fourth quarter 2013 and $77.8 million for the third quarter 2014. The efficiency ratio was 56.0 percent for the fourth quarter 2014, compared to 55.7 percent for the fourth quarter 2013 and 52.5 percent for the third quarter 2014. Noninterest expense and the efficiency ratio were impacted by a higher provision for unfunded commitments and expense related to an office relocation in the fourth quarter 2014.
Other expenses increased $3.2 million compared to the fourth quarter 2013 and $3.7 million compared to the third quarter 2014. Growth in commercial and construction-related loan commitments primarily drove higher provision for unfunded commitments, which was up $1.5 million from the fourth quarter 2013 and $2.0 million from the third quarter 2014. Also included in other expenses for the fourth quarter 2014 was $1.6 million of office relocation costs related to the right-sizing of the Kansas City office space. Going forward, annual occupancy costs in this market are anticipated to be approximately $420,000 lower over the seven years remaining under the original lease.
Additional hires through the year and increased incentive compensation accruals tied to improved performance contributed to an increase in salary and employee benefits expense of 10 percent compared to the fourth quarter 2013. Net foreclosed property expense declined 60 percent compared to the fourth quarter 2013, primarily reflecting a lower amount of writedowns on foreclosed property (OREO).
Credit Quality
Nonperforming assets declined to 0.54 percent of total assets at December 31, 2014, compared to 0.87 percent at December 31, 2013, and 0.60 percent at September 30, 2014. At December 31, 2014, nonperforming loans were $67.5 million, down 28 percent from December 31, 2013, and 8 percent from September 30, 2014. OREO of $17.4 million at December 31, 2014, declined 39 percent from December 31, 2013, and was down slightly from September 30, 2014.
The allowance for loan losses as a percentage of total loans was 1.28 percent at December 31, 2014, compared to 1.30 percent at September 30, 2014. The provision for loan losses was $4.0 million for the fourth quarter 2014 compared to $3.7 million for the third quarter 2014. Net charge-offs were $1.6 million, compared to $88,000 for the third quarter 2014. General allocated reserves increased 4 percent on a sequential basis, primarily reflecting loan growth.
Credit quality results exclude $34.1 million of covered residential mortgage loans and related assets acquired through an FDIC-assisted transaction that are subject to a loss-sharing agreement.
Balance Sheet
Total assets were $15.6 billion at December 31, 2014, up compared to $14.1 billion at December 31, 2013, and $15.2 billion at September 30, 2014. Total loans of $11.9 billion were $1.2 billion, or 12 percent, higher than December 31, 2013, and grew $344.6 million, or 3 percent, from the previous quarter end. On a sequential basis, growth in commercial and industrial and commercial real estate loans primarily drove the increase. During the fourth quarter 2014, $29.0 million of nonresidential mortgage loans were transferred to loans from covered assets due to the expiration of the related loss-sharing agreement. At December 31, 2014, $36.6 million of commercial credits funded in the fourth quarter were considered held-for-sale, as they are expected to be syndicated in the first quarter.
The Company's investment securities portfolio was $2.8 billion at December 31, 2014, up 10 percent from December 31, 2013, and 6 percent from September 30, 2014. Cash and cash equivalents were $424.6 million at December 31, 2014, compared to $440.1 million at December 31, 2013, and $597.3 million at September 30, 2014.
Total liabilities were $14.1 billion at December 31, 2014, up compared to $12.8 billion at December 31, 2013, and $13.8 billion compared to September 30, 2014. Total deposits were $13.1 billion at December 31, 2014, an increase of 9 percent from December 31, 2013, and 2 percent from September 30, 2014. Higher noninterest-bearing and interest-bearing demand deposits drove much of the growth. The deposit balances of our commercial clients may fluctuate depending on their cash management and liquidity needs. Noninterest bearing demand deposits comprised 27 percent of total deposits at December 31, 2014, up slightly from December 31, 2013, and September 30, 2014. At December 31, 2014, the loan-to-deposit ratio was 91 percent, compared to 89 percent as of December 31, 2013, and 90 percent as of September 30, 2014.
Capital
As of December 31, 2014, the total risk-based capital ratio was 12.51 percent, the Tier 1 risk-based capital ratio was 10.49 percent, and the leverage ratio was 9.96 percent. The Tier 1 common capital ratio was 9.33 percent (excluding the effect of the final Basel III capital rules that go into effect January 2015) and the tangible common equity ratio was 8.91 percent at the end of the fourth quarter 2014.
Quarterly Conference Call and Webcast Presentation
PrivateBancorp will host a conference call Friday, January 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 #51615860. A live webcast of the call can be accessed on the Company website at: investor.theprivatebank.com or 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 January 30, 2015, by calling (855) 859-2056 (U.S. and Canada) or (404) 537-3406 (International) and entering passcode #51615860.
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 December 31, 2014, the Company had 34 offices in 10 states and $15.6 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 an inability 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 to address compliance or regulatory burdens;
- 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; or
- unforeseen delays in completion of the sale of our Norcross, Georgia branch, changes in the amounts of deposits or loans to be sold at closing or greater-than-anticipated costs associated with the sale, any of which could affect the amount of the gain on sale of the branch.
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, 2013, and "Management's Discussion and Analysis of Financial Condition and Results of Operations" section of our Quarterly Report on Form 10-Q for the quarter ended September 30, 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) |
|||||||||||||||
| Quarter Ended December 31, |
Year Ended December 31, |
||||||||||||||
| 2014 |
2013 |
2014 |
2013 |
||||||||||||
| Unaudited |
Unaudited |
Unaudited |
Audited |
||||||||||||
| Interest Income |
|||||||||||||||
| Loans, including fees |
$ |
120,649 |
$ |
110,723 |
$ |
463,755 |
$ |
433,829 |
|||||||
| Federal funds sold and interest-bearing deposits in banks |
347 |
221 |
770 |
652 |
|||||||||||
| Securities: |
|||||||||||||||
| Taxable |
13,250 |
13,038 |
53,500 |
51,310 |
|||||||||||
| Exempt from Federal income taxes |
1,683 |
1,604 |
6,173 |
6,200 |
|||||||||||
| Other interest income |
49 |
34 |
189 |
247 |
|||||||||||
| Total interest income |
135,978 |
125,620 |
524,387 |
492,238 |
|||||||||||
| Interest Expense |
|||||||||||||||
| Interest-bearing demand deposits |
1,026 |
1,021 |
3,728 |
4,202 |
|||||||||||
| Savings deposits and money market accounts |
4,623 |
4,169 |
16,857 |
16,350 |
|||||||||||
| Time deposits |
5,803 |
5,062 |
21,366 |
20,161 |
|||||||||||
| Short-term and secured borrowings |
143 |
161 |
638 |
850 |
|||||||||||
| Long-term debt |
7,507 |
6,751 |
27,061 |
29,612 |
|||||||||||
| Total interest expense |
19,102 |
17,164 |
69,650 |
71,175 |
|||||||||||
| Net interest income |
116,876 |
108,456 |
454,737 |
421,063 |
|||||||||||
| Provision for loan and covered loan losses |
4,120 |
4,476 |
12,044 |
31,796 |
|||||||||||
| Net interest income after provision for loan and covered loan losses |
112,756 |
103,980 |
442,693 |
389,267 |
|||||||||||
| Non-interest Income |
|||||||||||||||
| Asset management |
4,241 |
4,613 |
17,268 |
18,377 |
|||||||||||
| Mortgage banking |
3,083 |
1,858 |
10,245 |
12,172 |
|||||||||||
| Capital markets products |
5,705 |
5,720 |
18,047 |
20,728 |
|||||||||||
| Treasury management |
7,262 |
6,321 |
27,472 |
24,668 |
|||||||||||
| Loan, letter of credit and commitment fees |
4,901 |
4,474 |
19,311 |
17,217 |
|||||||||||
| Syndication fees |
3,943 |
2,153 |
19,514 |
13,447 |
|||||||||||
| Deposit service charges and fees and other income |
1,291 |
1,322 |
5,203 |
6,207 |
|||||||||||
| Net securities gains |
— |
279 |
530 |
1,174 |
|||||||||||
| Total non-interest income |
30,426 |
26,740 |
117,590 |
113,990 |
|||||||||||
| Non-interest Expense |
|||||||||||||||
| Salaries and employee benefits |
46,746 |
42,575 |
182,192 |
166,929 |
|||||||||||
| Net occupancy and equipment expense |
7,947 |
7,548 |
31,258 |
30,027 |
|||||||||||
| Technology and related costs |
3,431 |
3,443 |
13,281 |
13,726 |
|||||||||||
| Marketing |
3,687 |
3,592 |
13,441 |
12,590 |
|||||||||||
| Professional services |
3,471 |
2,393 |
11,761 |
8,539 |
|||||||||||
| Outsourced servicing costs |
1,814 |
1,612 |
6,864 |
6,817 |
|||||||||||
| Net foreclosed property expenses |
1,456 |
3,600 |
8,681 |
20,194 |
|||||||||||
| Postage, telephone, and delivery |
809 |
845 |
3,400 |
3,521 |
|||||||||||
| Insurance |
3,455 |
2,934 |
12,451 |
10,867 |
|||||||||||
| Loan and collection expense |
2,037 |
2,351 |
6,765 |
8,753 |
|||||||||||
| Other expenses |
8,172 |
4,934 |
21,982 |
21,351 |
|||||||||||
| Total non-interest expense |
83,025 |
75,827 |
312,076 |
303,314 |
|||||||||||
| Income before income taxes |
60,157 |
54,893 |
248,207 |
199,943 |
|||||||||||
| Income tax provision |
22,934 |
21,187 |
95,128 |
76,994 |
|||||||||||
| Net income available to common stockholders |
$ |
37,223 |
$ |
33,706 |
$ |
153,079 |
$ |
122,949 |
|||||||
| Per Common Share Data |
|||||||||||||||
| Basic earnings per share |
$ |
0.48 |
$ |
0.43 |
$ |
1.96 |
$ |
1.58 |
|||||||
| Diluted earnings per share |
$ |
0.47 |
$ |
0.43 |
$ |
1.94 |
$ |
1.57 |
|||||||
| Cash dividends declared |
$ |
0.01 |
$ |
0.01 |
$ |
0.04 |
$ |
0.04 |
|||||||
| Weighted-average common shares outstanding |
77,173 |
76,533 |
77,007 |
76,398 |
|||||||||||
| Weighted-average diluted common shares outstanding |
78,122 |
76,967 |
77,822 |
76,645 |
|||||||||||
| Consolidated Income Statements |
|||||||||||||||||||
| (Amounts in thousands, except per share data) |
|||||||||||||||||||
| (Unaudited) |
|||||||||||||||||||
| 4Q14 |
3Q14 |
2Q14 |
1Q14 |
4Q13 |
|||||||||||||||
| Interest Income |
|||||||||||||||||||
| Loans, including fees |
$ |
120,649 |
$ |
119,211 |
$ |
113,696 |
$ |
110,199 |
$ |
110,723 |
|||||||||
| Federal funds sold and interest-bearing deposits in banks |
347 |
142 |
139 |
142 |
221 |
||||||||||||||
| Securities: |
|||||||||||||||||||
| Taxable |
13,250 |
13,370 |
13,625 |
13,255 |
13,038 |
||||||||||||||
| Exempt from Federal income taxes |
1,683 |
1,529 |
1,432 |
1,529 |
1,604 |
||||||||||||||
| Other interest income |
49 |
48 |
59 |
33 |
34 |
||||||||||||||
| Total interest income |
135,978 |
134,300 |
128,951 |
125,158 |
125,620 |
||||||||||||||
| Interest Expense |
|||||||||||||||||||
| Interest-bearing demand deposits |
1,026 |
918 |
842 |
942 |
1,021 |
||||||||||||||
| Savings deposits and money market accounts |
4,623 |
4,173 |
4,087 |
3,974 |
4,169 |
||||||||||||||
| Time deposits |
5,803 |
5,723 |
5,034 |
4,806 |
5,062 |
||||||||||||||
| Short-term and secured borrowings |
143 |
158 |
141 |
196 |
161 |
||||||||||||||
| Long-term debt |
7,507 |
6,570 |
6,496 |
6,488 |
6,751 |
||||||||||||||
| Total interest expense |
19,102 |
17,542 |
16,600 |
16,406 |
17,164 |
||||||||||||||
| Net interest income |
116,876 |
116,758 |
112,351 |
108,752 |
108,456 |
||||||||||||||
| Provision for loan and covered loan losses |
4,120 |
3,890 |
327 |
3,707 |
4,476 |
||||||||||||||
| Net interest income after provision for loan and covered loan losses |
112,756 |
112,868 |
112,024 |
105,045 |
103,980 |
||||||||||||||
| Non-interest Income |
|||||||||||||||||||
| Asset management |
4,241 |
4,240 |
4,440 |
4,347 |
4,613 |
||||||||||||||
| Mortgage banking |
3,083 |
2,904 |
2,626 |
1,632 |
1,858 |
||||||||||||||
| Capital markets products |
5,705 |
3,253 |
5,006 |
4,083 |
5,720 |
||||||||||||||
| Treasury management |
7,262 |
6,935 |
6,676 |
6,599 |
6,321 |
||||||||||||||
| Loan, letter of credit and commitment fees |
4,901 |
4,970 |
4,806 |
4,634 |
4,474 |
||||||||||||||
| Syndication fees |
3,943 |
6,818 |
5,440 |
3,313 |
2,153 |
||||||||||||||
| Deposit service charges and fees and other income |
1,291 |
1,546 |
1,069 |
1,297 |
1,322 |
||||||||||||||
| Net securities gains |
— |
3 |
196 |
331 |
279 |
||||||||||||||
| Total non-interest income |
30,426 |
30,669 |
30,259 |
26,236 |
26,740 |
||||||||||||||
| Non-interest Expense |
|||||||||||||||||||
| Salaries and employee benefits |
46,746 |
46,421 |
44,405 |
44,620 |
42,575 |
||||||||||||||
| Net occupancy and equipment expense |
7,947 |
7,807 |
7,728 |
7,776 |
7,548 |
||||||||||||||
| Technology and related costs |
3,431 |
3,362 |
3,205 |
3,283 |
3,443 |
||||||||||||||
| Marketing |
3,687 |
3,752 |
3,589 |
2,413 |
3,592 |
||||||||||||||
| Professional services |
3,471 |
2,626 |
2,905 |
2,759 |
2,393 |
||||||||||||||
| Outsourced servicing costs |
1,814 |
1,736 |
1,850 |
1,464 |
1,612 |
||||||||||||||
| Net foreclosed property expenses |
1,456 |
1,631 |
2,771 |
2,823 |
3,600 |
||||||||||||||
| Postage, telephone, and delivery |
809 |
839 |
927 |
825 |
845 |
||||||||||||||
| Insurance |
3,455 |
3,077 |
3,016 |
2,903 |
2,934 |
||||||||||||||
| Loan and collection expense |
2,037 |
2,099 |
1,573 |
1,056 |
2,351 |
||||||||||||||
| Other expenses |
8,172 |
4,486 |
3,496 |
5,828 |
4,934 |
||||||||||||||
| Total non-interest expense |
83,025 |
77,836 |
75,465 |
75,750 |
75,827 |
||||||||||||||
| Income before income taxes |
60,157 |
65,701 |
66,818 |
55,531 |
54,893 |
||||||||||||||
| Income tax provision |
22,934 |
25,174 |
25,994 |
21,026 |
21,187 |
||||||||||||||
| Net income available to common stockholders |
$ |
37,223 |
$ |
40,527 |
$ |
40,824 |
$ |
34,505 |
$ |
33,706 |
|||||||||
| Per Common Share Data |
|||||||||||||||||||
| Basic earnings per share |
$ |
0.48 |
$ |
0.52 |
$ |
0.52 |
$ |
0.44 |
$ |
0.43 |
|||||||||
| Diluted earnings per share |
$ |
0.47 |
$ |
0.51 |
$ |
0.52 |
$ |
0.44 |
$ |
0.43 |
|||||||||
| Cash dividends declared |
$ |
0.01 |
$ |
0.01 |
$ |
0.01 |
$ |
0.01 |
$ |
0.01 |
|||||||||
| Weighted-average common shares outstanding |
77,173 |
77,110 |
77,062 |
76,675 |
76,533 |
||||||||||||||
| Weighted-average diluted common shares outstanding |
78,122 |
77,934 |
77,806 |
77,417 |
76,967 |
||||||||||||||
| Consolidated Balance Sheets |
|||||||||||||||||||
| (Dollars in thousands) |
|||||||||||||||||||
| 12/31/14 |
9/30/14 |
6/30/14 |
3/31/14 |
12/31/13 |
|||||||||||||||
| Unaudited |
Unaudited |
Unaudited |
Unaudited |
Audited |
|||||||||||||||
| Assets |
|||||||||||||||||||
| Cash and due from banks |
$ |
132,211 |
$ |
181,248 |
$ |
247,048 |
$ |
233,685 |
$ |
133,518 |
|||||||||
| Federal funds sold and interest-bearing deposits in banks |
292,341 |
416,071 |
160,349 |
117,446 |
306,544 |
||||||||||||||
| Loans held-for-sale |
115,161 |
57,748 |
80,724 |
26,262 |
26,816 |
||||||||||||||
| Securities available-for-sale, at fair value |
1,645,344 |
1,541,754 |
1,527,747 |
1,577,406 |
1,602,476 |
||||||||||||||
| Securities held-to-maturity, at amortized cost |
1,129,285 |
1,072,002 |
1,066,216 |
1,023,214 |
921,436 |
||||||||||||||
| Federal Home Loan Bank ("FHLB") stock |
28,666 |
28,666 |
28,666 |
30,005 |
30,005 |
||||||||||||||
| Loans – excluding covered assets, net of unearned fees |
11,892,219 |
11,547,587 |
11,136,942 |
10,924,985 |
10,644,021 |
||||||||||||||
| Allowance for loan losses |
(152,498) |
(150,135) |
(146,491) |
(146,768) |
(143,109) |
||||||||||||||
| Loans, net of allowance for loan losses and unearned fees |
11,739,721 |
11,397,452 |
10,990,451 |
10,778,217 |
10,500,912 |
||||||||||||||
| Covered assets |
34,132 |
65,482 |
81,047 |
94,349 |
112,746 |
||||||||||||||
| Allowance for covered loan losses |
(5,191) |
(4,485) |
(14,375) |
(16,571) |
(16,511) |
||||||||||||||
| Covered assets, net of allowance for covered loan losses |
28,941 |
60,997 |
66,672 |
77,778 |
96,235 |
||||||||||||||
| Other real estate owned, excluding covered assets |
17,416 |
17,293 |
19,823 |
23,565 |
28,548 |
||||||||||||||
| Premises, furniture, and equipment, net |
39,143 |
39,611 |
40,088 |
39,556 |
39,704 |
||||||||||||||
| Accrued interest receivable |
40,531 |
39,701 |
36,568 |
39,273 |
37,004 |
||||||||||||||
| Investment in bank owned life insurance |
55,207 |
54,849 |
54,500 |
54,184 |
53,865 |
||||||||||||||
| Goodwill |
94,041 |
94,041 |
94,041 |
94,041 |
94,041 |
||||||||||||||
| Other intangible assets |
5,885 |
6,627 |
7,381 |
8,136 |
8,892 |
||||||||||||||
| Derivative assets |
43,062 |
34,896 |
47,012 |
44,528 |
48,422 |
||||||||||||||
| Other assets |
196,427 |
147,512 |
135,118 |
137,486 |
157,328 |
||||||||||||||
| Total assets |
$ |
15,603,382 |
$ |
15,190,468 |
$ |
14,602,404 |
$ |
14,304,782 |
$ |
14,085,746 |
|||||||||
| Liabilities |
|||||||||||||||||||
| Demand deposits: |
|||||||||||||||||||
| Noninterest-bearing |
$ |
3,516,695 |
$ |
3,342,862 |
$ |
3,387,424 |
$ |
3,103,736 |
$ |
3,172,676 |
|||||||||
| Interest-bearing |
1,907,320 |
1,433,429 |
1,230,681 |
1,466,095 |
1,470,856 |
||||||||||||||
| Savings deposits and money market accounts |
5,171,025 |
5,368,866 |
5,033,247 |
4,786,398 |
4,799,561 |
||||||||||||||
| Time deposits |
2,494,928 |
2,704,047 |
2,584,849 |
2,529,932 |
2,570,548 |
||||||||||||||
| Total deposits |
13,089,968 |
12,849,204 |
12,236,201 |
11,886,161 |
12,013,641 |
||||||||||||||
| Deposits held-for-sale |
122,216 |
128,508 |
— |
— |
— |
||||||||||||||
| Short-term and secured borrowings |
432,385 |
6,563 |
235,319 |
333,400 |
8,400 |
||||||||||||||
| Long-term debt |
344,788 |
656,793 |
626,793 |
627,793 |
627,793 |
||||||||||||||
| Accrued interest payable |
6,948 |
6,987 |
6,282 |
6,251 |
6,326 |
||||||||||||||
| Derivative liabilities |
26,767 |
27,976 |
35,402 |
40,522 |
48,890 |
||||||||||||||
| Other liabilities |
98,631 |
79,128 |
64,586 |
67,409 |
78,792 |
||||||||||||||
| Total liabilities |
14,121,703 |
13,755,159 |
13,204,583 |
12,961,536 |
12,783,842 |
||||||||||||||
| Equity |
|||||||||||||||||||
| Common stock: |
|||||||||||||||||||
| Voting |
77,211 |
76,858 |
75,526 |
75,428 |
75,240 |
||||||||||||||
| Nonvoting |
— |
285 |
1,585 |
1,585 |
1,585 |
||||||||||||||
| Treasury stock |
(53) |
(6) |
(945) |
(1,697) |
(6,415) |
||||||||||||||
| Additional paid-in capital |
1,034,048 |
1,028,813 |
1,024,869 |
1,021,436 |
1,022,023 |
||||||||||||||
| Retained earnings |
349,556 |
313,123 |
273,380 |
233,347 |
199,627 |
||||||||||||||
| Accumulated other comprehensive income, net of tax |
20,917 |
16,236 |
23,406 |
13,147 |
9,844 |
||||||||||||||
| Total equity |
1,481,679 |
1,435,309 |
1,397,821 |
1,343,246 |
1,301,904 |
||||||||||||||
| Total liabilities and equity |
$ |
15,603,382 |
$ |
15,190,468 |
$ |
14,602,404 |
$ |
14,304,782 |
$ |
14,085,746 |
|||||||||
| Note: Certain reclassifications have been made to prior period amounts to conform to the current period presentation. |
||||||||||||||||||||
| Selected Financial Data |
||||||||||||||||||||
| (Amounts in thousands, except per share data) |
||||||||||||||||||||
| (Unaudited) |
||||||||||||||||||||
| 4Q14 |
3Q14 |
2Q14 |
1Q14 |
4Q13 |
||||||||||||||||
| Selected Statement of Income Data: |
||||||||||||||||||||
| Net interest income |
$ |
116,876 |
$ |
116,758 |
$ |
112,351 |
$ |
108,752 |
$ |
108,456 |
||||||||||
| Net revenue (1)(2) |
$ |
148,180 |
$ |
148,238 |
$ |
143,354 |
$ |
135,788 |
$ |
136,036 |
||||||||||
| Operating profit (1)(2) |
$ |
65,155 |
$ |
70,402 |
$ |
67,889 |
$ |
60,038 |
$ |
60,209 |
||||||||||
| Provision for loan and covered loan losses |
$ |
4,120 |
$ |
3,890 |
$ |
327 |
$ |
3,707 |
$ |
4,476 |
||||||||||
| Income before income taxes |
$ |
60,157 |
$ |
65,701 |
$ |
66,818 |
$ |
55,531 |
$ |
54,893 |
||||||||||
| Net income available to common stockholders |
$ |
37,223 |
$ |
40,527 |
$ |
40,824 |
$ |
34,505 |
$ |
33,706 |
||||||||||
| Per Common Share Data: |
||||||||||||||||||||
| Basic earnings per share |
$ |
0.48 |
$ |
0.52 |
$ |
0.52 |
$ |
0.44 |
$ |
0.43 |
||||||||||
| Diluted earnings per share |
$ |
0.47 |
$ |
0.51 |
$ |
0.52 |
$ |
0.44 |
$ |
0.43 |
||||||||||
| Dividends declared |
$ |
0.01 |
$ |
0.01 |
$ |
0.01 |
$ |
0.01 |
$ |
0.01 |
||||||||||
| Book value (period end) (1) |
$ |
18.95 |
$ |
18.37 |
$ |
17.90 |
$ |
17.21 |
$ |
16.75 |
||||||||||
| Tangible book value (period end) (1)(2) |
$ |
17.67 |
$ |
17.08 |
$ |
16.61 |
$ |
15.90 |
$ |
15.43 |
||||||||||
| Market value (period end) |
$ |
33.40 |
$ |
29.91 |
$ |
29.06 |
$ |
30.51 |
$ |
28.93 |
||||||||||
| Book value multiple (period end) |
1.76 |
x |
1.63 |
x |
1.62 |
x |
1.77 |
x |
1.73 |
x |
||||||||||
| Share Data: |
||||||||||||||||||||
| Weighted-average common shares outstanding |
77,173 |
77,110 |
77,062 |
76,675 |
76,533 |
|||||||||||||||
| Weighted-average diluted common shares outstanding |
78,122 |
77,934 |
77,806 |
77,417 |
76,967 |
|||||||||||||||
| Common shares issued (period end) |
78,180 |
78,121 |
78,101 |
78,108 |
77,982 |
|||||||||||||||
| Common shares outstanding (period end) |
78,178 |
78,121 |
78,069 |
78,049 |
77,708 |
|||||||||||||||
| Performance Ratio: |
||||||||||||||||||||
| Return on average common equity |
10.03 |
% |
11.27 |
% |
11.88 |
% |
10.48 |
% |
10.28 |
% |
||||||||||
| Return on average assets |
0.95 |
% |
1.09 |
% |
1.14 |
% |
1.00 |
% |
0.96 |
% |
||||||||||
| Return on average tangible common equity (1)(2) |
10.89 |
% |
12.27 |
% |
12.97 |
% |
11.50 |
% |
11.33 |
% |
||||||||||
| Net interest margin (1)(2) |
3.07 |
% |
3.23 |
% |
3.21 |
% |
3.23 |
% |
3.18 |
% |
||||||||||
| Fee revenue as a percent of total revenue (1) |
20.66 |
% |
20.80 |
% |
21.11 |
% |
19.24 |
% |
19.61 |
% |
||||||||||
| Non-interest income to average assets |
0.78 |
% |
0.83 |
% |
0.84 |
% |
0.76 |
% |
0.76 |
% |
||||||||||
| Non-interest expense to average assets |
2.12 |
% |
2.09 |
% |
2.10 |
% |
2.19 |
% |
2.16 |
% |
||||||||||
| Net overhead ratio (1) |
1.35 |
% |
1.27 |
% |
1.26 |
% |
1.43 |
% |
1.40 |
% |
||||||||||
| Efficiency ratio (1)(2) |
56.03 |
% |
52.51 |
% |
52.64 |
% |
55.79 |
% |
55.74 |
% |
||||||||||
| Balance Sheet Ratios: |
||||||||||||||||||||
| Loans to deposits (period end) (3) |
90.85 |
% |
89.87 |
% |
91.02 |
% |
91.91 |
% |
88.60 |
% |
||||||||||
| Average interest-earning assets to average interest-bearing liabilities |
145.10 |
% |
145.51 |
% |
143.72 |
% |
143.43 |
% |
144.87 |
% |
||||||||||
| Capital Ratios (period end): |
||||||||||||||||||||
| Total risk-based capital (1) |
12.51 |
% |
13.18 |
% |
13.41 |
% |
13.39 |
% |
13.30 |
% |
||||||||||
| Tier 1 risk-based capital (1) |
10.49 |
% |
11.12 |
% |
11.24 |
% |
11.19 |
% |
11.08 |
% |
||||||||||
| Tier 1 leverage ratio (1) |
9.96 |
% |
10.70 |
% |
10.63 |
% |
10.60 |
% |
10.37 |
% |
||||||||||
| Tier 1 common equity to risk-weighted assets (1)(2)(4) |
9.33 |
% |
9.38 |
% |
9.42 |
% |
9.33 |
% |
9.19 |
% |
||||||||||
| Tangible common equity to tangible assets (1)(2) |
8.91 |
% |
8.84 |
% |
8.94 |
% |
8.74 |
% |
8.57 |
% |
||||||||||
| Total equity to total assets |
9.50 |
% |
9.45 |
% |
9.57 |
% |
9.39 |
% |
9.24 |
% |
||||||||||
| (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) For purposes of our presentation, we calculated this ratio in accordance with the applicable regulations of the Board of Governors of the Federal Reserve System and does not give effect to the final Basel III capital rules that are effective on January 1, 2015. |
||||||||||||||||||||
| Selected Financial Data (continued) |
|||||||||||||||||||
| (Dollars in thousands) |
|||||||||||||||||||
| (Unaudited) |
|||||||||||||||||||
| 4Q14 |
3Q14 |
2Q14 |
1Q14 |
4Q13 |
|||||||||||||||
| Additional Selected Information: |
|||||||||||||||||||
| (Increase) decrease credit valuation adjustment on capital markets derivatives (1) |
$ |
(216) |
$ |
486 |
$ |
(250) |
$ |
(66) |
$ |
619 |
|||||||||
| Salaries and employee benefits: |
|||||||||||||||||||
| Salaries and wages |
$ |
26,521 |
$ |
26,178 |
$ |
25,671 |
$ |
24,973 |
$ |
23,971 |
|||||||||
| Share-based costs |
4,118 |
3,872 |
3,892 |
3,685 |
3,316 |
||||||||||||||
| Incentive compensation and commissions |
12,053 |
12,294 |
10,493 |
8,244 |
11,711 |
||||||||||||||
| Payroll taxes, insurance and retirement costs |
4,054 |
4,077 |
4,349 |
7,718 |
3,577 |
||||||||||||||
| Total salaries and employee benefits |
$ |
46,746 |
$ |
46,421 |
$ |
44,405 |
$ |
44,620 |
$ |
42,575 |
|||||||||
| Loan and collection expense: |
|||||||||||||||||||
| Loan origination and servicing expense |
$ |
1,528 |
$ |
1,528 |
$ |
1,202 |
$ |
799 |
$ |
1,575 |
|||||||||
| Loan remediation expense |
509 |
571 |
371 |
257 |
776 |
||||||||||||||
| Total loan and collection expense |
$ |
2,037 |
$ |
2,099 |
$ |
1,573 |
$ |
1,056 |
$ |
2,351 |
|||||||||
| Provision (release) for unfunded commitments |
$ |
2,514 |
$ |
481 |
$ |
(339) |
$ |
496 |
$ |
1,019 |
|||||||||
| Assets under management and administration (AUMA) (1) |
$ |
6,644,113 |
$ |
6,478,845 |
$ |
6,361,560 |
$ |
6,036,381 |
$ |
5,731,980 |
|||||||||
| Custody assets included in AUMA |
$ |
3,213,928 |
$ |
3,085,861 |
$ |
2,928,116 |
$ |
2,663,502 |
$ |
2,506,291 |
|||||||||
| (1) Refer to Glossary of Terms for definition. |
|||||||||||||||||||
SOURCE PrivateBancorp, Inc.
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