PrivateBancorp Reports Third Quarter 2016 Earnings

Earnings per share of $0.60 for third quarter 2016, compared to $0.57 for third quarter 2015 and $0.62 for second quarter 2016

News provided by

PrivateBancorp, Inc.

Oct 20, 2016, 07:30 ET

CHICAGO, Oct. 20, 2016 /PRNewswire/ -- PrivateBancorp, Inc. (NASDAQ: PVTB) today reported net income of $48.9 million, or $0.60 per diluted share, for the third quarter 2016, compared to $45.3 million, or $0.57 per diluted share, for the third quarter 2015, and $50.4 million, or $0.62 per diluted share, for the second quarter 2016. For the nine months ended September 30, 2016, the Company had net income of $148.8 million, or $1.84 per diluted share, compared to $133.2 million, or $1.67 per diluted share, for the nine months ended September 30, 2015.

"Our third quarter results reflect our continued focus on consistent execution of our strategy to build long-term client relationships," said Larry D. Richman, President and Chief Executive Officer, PrivateBancorp, Inc. "Net loan growth was $619 million, which helped to drive net interest income to $145.5 million, 11 percent higher than the year-ago quarter, and noninterest income was up over third quarter 2015 to $37.6 million. Third quarter net income of $48.9 million was up 8 percent from a year ago. Overall asset quality remains strong, although we saw higher provision expense this quarter. I am pleased with the momentum in our business as we enter the final quarter of the year.

"We remain on track to close our pending transaction with CIBC, announced in June, by the end of the first quarter 2017 and remain eager for the opportunities this proposed merger presents for both PrivateBancorp and CIBC," Richman continued.

Third Quarter 2016 Highlights

During the quarter, total loans grew to $14.7 billion, up $1.6 billion from a year ago and $618.8 million from June 30, 2016, driven primarily by activity in commercial and industrial loans.
Total deposits were $15.5 billion, increasing $1.6 billion from a year ago and $931.5 million from June 30, 2016. Noninterest-bearing demand deposits grew 19 percent from a year ago, representing 31 percent of total deposits at September 30, 2016.
Net interest margin was 3.18 percent, compared to 3.23 percent for the third quarter 2015 and 3.28 percent for the second quarter 2016. A lower level of loan fees primarily drove the decline in net interest margin on a sequential basis.
Growth in earning assets continued to benefit operating profit, which increased 19 percent from the third quarter 2015 and 7 percent from the second quarter 2016. On a sequential basis, operating profit also benefited from lower professional services expense, largely related to $6.3 million of transaction-related costs reflected in the results for the second quarter 2016.
The provision for loan and covered loan losses was $15.7 million for the third quarter 2016, reflecting loan growth and some credit migration, compared to $4.2 million for the third quarter 2015 and $5.6 million for the second quarter 2016.
Return on average assets was 1.04 percent and return on average common equity was 10.4 percent for the third quarter 2016.

Operating Performance

Net interest income grew to $145.5 million in the third quarter 2016, increasing 11 percent from the third quarter 2015 and 2 percent from the second quarter 2016, primarily driven by growth in average loans of 12 percent compared to third quarter 2015 and 4 percent compared to the second quarter 2016.

Net interest margin was 3.18 percent in the third quarter 2016, declining 5 basis points from a year ago and 10 basis points from the second quarter 2016, primarily related to lower loan yields and, to a lesser extent, security yields. Loan yields decreased 9 basis points compared to the second quarter 2016, largely related to lower loan fees on a comparative basis. Second quarter results included an elevated fee impact from payoffs and interest recoveries on previous nonaccrual loans. The level of loan fees tends to be uneven quarter-to-quarter, dependent on when loans pays off during their term as well as whether early termination fees exist. Loan yields also reflected a continued upwards move in LIBOR over the last two quarters, benefiting loan yields for the third quarter by 3 basis points. Excluding the contribution from loan fees, hedging, and movement in LIBOR, loan yields were stable in the current environment. Securities yields declined 9 basis points on a sequential basis, as the low rate environment has accelerated prepayment speeds and reduced yields on securities purchased during the quarter. A higher Fed funds effective rate contributed to a slight rise in deposit costs on a sequential basis.

Noninterest income was $37.6 million in the third quarter 2016, increasing $6.8 million from the third quarter 2015 and $484,000 from the second quarter 2016. Other income for the third quarter 2016 reflected a $1.3 million gain on sale of a loan. Treasury management fees were $8.6 million in the third quarter 2016, up 8 percent from the third quarter 2015 and 4 percent from the second quarter 2016, primarily reflecting the onboarding of new commercial clients. Mortgage banking revenue increased $1.7 million from the third quarter 2015 and $453,000 on a sequential basis, reflecting a higher volume of loans sold.

Syndication fees of $4.7 million for the third quarter 2016 increased $357,000 from the third quarter 2015 and declined $943,000 from the second quarter 2016, reflecting a somewhat lower volume of deals compared to the sequential quarter. Capital markets revenue for the third quarter 2016 reflected a positive credit valuation adjustment (CVA) of $910,000, compared to a negative CVA of $1.2 million for the third quarter 2015 and $1.0 million for the second quarter 2016. Excluding the CVA impact for all periods, capital markets revenue was $4.5 million in the third quarter 2016, compared to $4.3 million for the third quarter 2015 and $6.9 million in the second quarter 2016. The sequential decline reflected moderated interest rate derivative activity compared to the first half of 2016. Interest rates derivatives activity is significantly influenced by clients' views on the extent and timing of future interest rate movements. Foreign exchange revenue for the third quarter 2016 was comparable to the year ago quarter and on a sequential basis.

Asset management revenue was $5.6 million in the third quarter 2016, increasing 25 percent from the third quarter 2015 and up slightly from the second quarter 2016. Assets under management and administration were $10.0 billion as of September 30, 2016, compared to $7.2 billion a year ago and $10.7 billion at June 30, 2016. Managed assets grew $178.2 million, or 4 percent, on a sequential basis. Custody assets declined by $818.7 million, largely reflecting a continuation of expected outflows from a corporate trust added during the first quarter 2016. It is anticipated that this account will be reduced by approximately $500 million by the end of the year as funds are disbursed or redeployed.

Expenses

Noninterest expense for the third quarter 2016 increased $6.7 million from the third quarter 2015 and declined $2.3 million from the second quarter 2016. Included in second quarter 2016 non-interest expense were $6.3 million of transaction-related expenses that were largely reflected in professional services expense.

Other expenses includes the provision for unfunded commitments, which was $1.9 million for the third quarter 2016, compared to $2.0 million for the third quarter 2015 and $1.4 million for the second quarter 2016. The increase in the provision on a sequential basis primarily reflected growth in unfunded commitments, as well as some credit migration related to unfunded commercial commitments.

The efficiency ratio was 49.9 percent for the third quarter 2016, compared to 52.2 percent for the third quarter 2015 and 52.2 percent for the second quarter 2016.

Credit Quality

The allowance for loan losses was $180.3 million, or 1.23 percent of total loans, at September 30, 2016, compared to $168.6 million, or 1.20 percent of total loans, at June 30, 2016. The provision for loan losses was $15.9 million for the third quarter 2016, increasing from $4.2 million for the third quarter 2015 and $5.6 million from the second quarter 2016. While asset quality remained strong, the provision was higher following several quarters of unusually low credit costs. The increase in the general reserve reflected strong loan growth and some level of credit migration. Higher nonperforming loan levels at September 30, 2016 reflected irregularities with a single lending relationship, which increased specific reserves by approximately $5 million. The provision for loan loss will fluctuate from period to period depending on the level of loan growth and unevenness in credit quality due to the size of individual credits. Charge-offs were elevated on a comparative basis largely related to a single relationship that was identified during the quarter. Annualized net charge-offs to average loans were 0.12 percent for the third quarter 2016, compared to 0.07 percent for the second quarter 2016 and annualized net recoveries to average loans of 0.05 percent for the third quarter 2015.

Nonperforming assets were 0.52 percent of total assets at September 30, 2016, compared to 0.44 percent at June 30, 2016. At September 30, 2016, nonperforming loans were $87.4 million, increasing $21.9 million from June 30, 2016. OREO decreased $2.5 million from June 30, 2016 to $12.0 million at September 30, 2016.

Balance Sheet

Total assets were $19.1 billion at September 30, 2016, compared to $16.9 billion at September 30, 2015, and $18.2 billion at June 30, 2016. Total loans of $14.7 billion increased 12 percent from September 30, 2015, and 4 percent from June 30, 2016. Loan growth for the third quarter 2016 reflected loans to new clients of $456.4 million, payoffs lower than the five quarter average, and higher draws on revolving loans. At September 30, 2016, commercial loans represented 65 percent of total loans compared to 64 percent at June 30, 2016, and commercial real estate and construction loans represented 29 percent of total loans, compared to 30 percent of total loans at June 30, 2016.

Total liabilities were $17.2 billion at September 30, 2016, compared to $15.2 billion at September 30, 2015, and $16.3 billion at June 30, 2016. Total deposits were $15.5 billion at September 30, 2016, increasing 11 percent from September 30, 2015, and 6 percent from June 30, 2016. Deposit growth included an increase in noninterest-bearing demand deposits of $788.7 million from a year ago and $345.6 million from June 30, 2016. Noninterest-bearing demand deposits represented 31 percent of total deposits at September 30, 2016, compared to 29 percent a year ago and consistent with June 30, 2016. At September 30, 2016, the loan-to-deposit ratio was 95 percent, compared to 94 percent as of September 30, 2015, and 96 percent as of June 30, 2016. Given the nature of our commercial client base, deposit balances have historically increased in the second half of the year compared to the first half.

Capital

As of September 30, 2016, the total risk-based capital ratio was 12.41 percent, the Tier 1 risk-based capital ratio was 10.64 percent, and the leverage ratio was 10.43 percent. The common equity Tier 1 ratio was 9.71 percent and the tangible common equity ratio was 9.40 percent at the end of the third quarter 2016.

No Quarterly Conference Call

In light of PrivateBancorp's announcement regarding its pending transaction with CIBC, PrivateBancorp does not intend to conduct an earnings conference call to discuss third quarter 2016 results.

About PrivateBancorp, Inc.

PrivateBancorp, Inc., through its subsidiary The PrivateBank, 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 it serves. As of September 30, 2016, the Company had 34 offices in 12 states and $19.1 billion in assets. The Company's website is www.theprivatebank.com. On June 29, 2016, PrivateBancorp announced plans to merge with CIBC, a leading Canadian bank. The transaction is expected to close by the end of the first quarter 2017, pending regulatory and stockholder approval and other customary closing conditions.

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:

the possibility that the transaction with CIBC does not close when expected or at all because required regulatory, stockholder or other approvals are not received or other conditions to the closing are not satisfied on a timely basis or at all; or the possibility that, as a result of the announcement and pendency of the proposed transaction, we experience difficulties in employee retention and/or clients or vendors seek to change their existing business relationships with us, or competitors change their strategies to compete against us, any of which may have a negative impact on our business or operations;
uncertainty regarding geopolitical developments and the U.S. and global economic outlook that may continue to 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;
competitive pressures in the financial services industry relating to both pricing and loan structures, which may impact our growth rate;
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;
unanticipated changes in monetary policies of the Federal Reserve or significant adjustments in the pace of, or market expectations for, future interest rate changes;
availability of sufficient and cost-effective sources of liquidity or funding as and when needed;
unanticipated losses of one or more large depositor relationships, or other significant deposit outflows;
loss of key personnel or an inability to recruit appropriate talent cost-effectively;
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 or regulatory costs and 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 security 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 fiscal year ended December 31, 2015, and the "Management's Discussion and Analysis of Financial Condition and Results of Operations" section of our Form 10-Q for the quarter ended June 30, 2016, 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 of the non-U.S. GAAP financial measure 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)
	Three Months Ended September 30,				Nine Months Ended September 30,
	2016		2015		2016		2015
Interest Income
Loans, including fees	$	148,759	$	132,106	$	432,990	$	380,455
Federal funds sold and interest-bearing deposits in banks	380		168		1,055		674
Securities:
Taxable	15,283		13,599		45,651		40,696
Exempt from Federal income taxes	2,322		2,177		6,951		5,964
Other interest income	139		69		459		180
Total interest income	166,883		148,119		487,106		427,969
Interest Expense
Deposits	15,238		11,838		42,274		34,742
Short-term borrowings	1,070		24		2,295		455
Long-term debt	5,065		5,048		15,492		14,948
Total interest expense	21,373		16,910		60,061		50,145
Net interest income	145,510		131,209		427,045		377,824
Provision for loan and covered loan losses	15,691		4,197		27,662		11,959
Net interest income after provision for loan and covered loan losses	129,819		127,012		399,383		365,865
Non-interest Income
Asset management	5,590		4,462		15,854		13,566
Mortgage banking	5,060		3,340		12,636		11,267
Capital markets products	5,448		3,098		16,499		12,189
Treasury management	8,617		8,010		25,093		22,758
Loan, letter of credit and commitment fees	5,293		5,670		16,031		15,690
Syndication fees	4,721		4,364		15,819		12,361
Deposit service charges and fees and other income	2,885		1,585		5,303		8,740
Net securities gains	—		260		1,111		793
Total non-interest income	37,614		30,789		108,346		97,364
Non-interest Expense
Salaries and employee benefits	55,889		50,019		169,554		152,400
Net occupancy and equipment expense	7,099		7,098		21,326		21,087
Technology and related costs	6,282		4,665		17,062		13,540
Marketing	4,587		3,682		12,916		11,926
Professional services	2,865		3,679		15,349		8,574
Outsourced servicing costs	1,379		1,786		5,271		5,500
Net foreclosed property expenses	965		1,080		1,891		2,993
Postage, telephone, and delivery	818		857		2,603		2,618
Insurance	3,931		3,667		11,730		10,328
Loan and collection expense	1,972		2,324		5,521		6,802
Other expenses	6,133		6,318		13,406		14,449
Total non-interest expense	91,920		85,175		276,629		250,217
Income before income taxes	75,513		72,626		231,100		213,012
Income tax provision	26,621		27,358		82,291		79,838
Net income available to common stockholders	$	48,892	$	45,268	$	148,809	$	133,174
Per Common Share Data
Basic earnings per share	$	0.61	$	0.58	$	1.87	$	1.70
Diluted earnings per share	$	0.60	$	0.57	$	1.84	$	1.67
Cash dividends declared	$	0.01	$	0.01	$	0.03	$	0.03
Weighted-average common shares outstanding	79,007		78,144		78,803		77,834
Weighted-average diluted common shares outstanding	80,673		79,401		80,283		79,027

Note: Certain reclassifications have been made to prior period amounts to conform to the current period presentation.

Consolidated Income Statements
(Amounts in thousands, except per share data)
(Unaudited)
	3Q16		2Q16		1Q16		4Q15		3Q15
Interest Income
Loans, including fees	$	148,759	$	144,164	$	140,067	$	137,006	$	132,106
Federal funds sold and interest-bearing deposits in banks	380		335		340		229		168
Securities:
Taxable	15,283		15,158		15,210		14,587		13,599
Exempt from Federal income taxes	2,322		2,296		2,333		2,306		2,177
Other interest income	139		170		150		115		69
Total interest income	166,883		162,123		158,100		154,243		148,119
Interest Expense
Deposits	15,238		13,895		13,141		12,364		11,838
Short-term borrowings	1,070		995		230		201		24
Long-term debt	5,065		5,216		5,211		5,087		5,048
Total interest expense	21,373		20,106		18,582		17,652		16,910
Net interest income	145,510		142,017		139,518		136,591		131,209
Provision for loan and covered loan losses	15,691		5,569		6,402		2,831		4,197
Net interest income after provision for loan and covered loan losses	129,819		136,448		133,116		133,760		127,012
Non-interest Income
Asset management	5,590		5,539		4,725		4,392		4,462
Mortgage banking	5,060		4,607		2,969		2,812		3,340
Capital markets products	5,448		5,852		5,199		6,341		3,098
Treasury management	8,617		8,290		8,186		7,883		8,010
Loan, letter of credit and commitment fees	5,293		5,538		5,200		4,958		5,670
Syndication fees	4,721		5,664		5,434		4,844		4,364
Deposit service charges and fees and other income	2,885		1,060		1,358		1,389		1,585
Net securities gains	—		580		531		29		260
Total non-interest income	37,614		37,130		33,602		32,648		30,789
Non-interest Expense
Salaries and employee benefits	55,889		55,326		58,339		52,619		50,019
Net occupancy and equipment expense	7,099		7,012		7,215		7,127		7,098
Technology and related costs	6,282		5,487		5,293		5,221		4,665
Marketing	4,587		3,925		4,404		4,196		3,682
Professional services	2,865		9,490		2,994		2,746		3,679
Outsourced servicing costs	1,379		2,052		1,840		1,994		1,786
Net foreclosed property expenses	965		360		566		1,217		1,080
Postage, telephone, and delivery	818		945		840		964		857
Insurance	3,931		3,979		3,820		3,644		3,667
Loan and collection expense	1,972		2,017		1,532		1,754		2,324
Other expenses	6,133		3,623		3,650		1,538		6,318
Total non-interest expense	91,920		94,216		90,493		83,020		85,175
Income before income taxes	75,513		79,362		76,225		83,388		72,626
Income tax provision	26,621		28,997		26,673		31,251		27,358
Net income available to common stockholders	$	48,892	$	50,365	$	49,552	$	52,137	$	45,268
Per Common Share Data
Basic earnings per share	$	0.61	$	0.63	$	0.63	$	0.66	$	0.58
Diluted earnings per share	$	0.60	$	0.62	$	0.62	$	0.65	$	0.57
Cash dividends declared	$	0.01	$	0.01	$	0.01	$	0.01	$	0.01
Weighted-average common shares outstanding	79,007		78,849		78,550		78,366		78,144
Weighted-average diluted common shares outstanding	80,673		80,317		79,856		79,738		79,401

Consolidated Balance Sheets
(Dollars in thousands)

	9/30/16		6/30/16		3/31/16		12/31/15		9/30/15
	Unaudited		Unaudited		Unaudited		Audited		Unaudited
Assets
Cash and due from banks	$	166,607	$	155,292	$	133,001	$	145,147	$	145,477
Federal funds sold and interest-bearing deposits in banks	245,193		230,036		337,465		238,511		231,600
Loans held-for-sale	75,438		61,360		64,029		108,798		76,225
Securities available-for-sale, at fair value	1,961,099		1,864,636		1,831,848		1,765,366		1,703,926
Securities held-to-maturity, at amortized cost	1,633,235		1,435,334		1,456,760		1,355,283		1,293,433
Federal Home Loan Bank ("FHLB") stock	30,213		21,113		38,113		26,613		30,740
Loans – excluding covered assets, net of unearned fees	14,654,570		14,035,808		13,457,665		13,266,475		13,079,314
Allowance for loan losses	(180,268)		(168,615)		(165,356)		(160,736)		(162,868)
Loans, net of allowance for loan losses and unearned fees	14,474,302		13,867,193		13,292,309		13,105,739		12,916,446
Covered assets	23,889		25,151		25,769		26,954		28,559
Allowance for covered loan losses	(4,879)		(5,525)		(5,526)		(5,712)		(6,337)
Covered assets, net of allowance for covered loan losses	19,010		19,626		20,243		21,242		22,222
Other real estate owned, excluding covered assets	12,035		14,532		14,806		7,273		12,760
Premises, furniture, and equipment, net	44,760		43,394		41,717		42,405		38,265
Accrued interest receivable	48,512		47,209		47,349		45,482		43,064
Investment in bank owned life insurance	57,750		57,380		57,011		56,653		56,292
Goodwill	94,041		94,041		94,041		94,041		94,041
Other intangible assets	1,809		2,349		2,890		3,430		4,008
Derivative assets	62,094		80,995		66,406		40,615		59,978
Other assets	179,462		174,701		169,384		196,250		159,531
Total assets	$	19,105,560	$	18,169,191	$	17,667,372	$	17,252,848	$	16,888,008
Liabilities
Deposits:
Noninterest-bearing	$	4,857,470	$	4,511,893	$	4,338,177	$	4,355,700	$	4,068,816
Interest-bearing	10,631,384		10,045,501		10,126,692		9,989,892		9,828,923
Total deposits	15,488,854		14,557,394		14,464,869		14,345,592		13,897,739
Short-term borrowings	1,233,318		1,287,934		602,365		372,467		514,121
Long-term debt	338,286		338,262		688,238		688,215		688,191
Accrued interest payable	7,953		7,967		6,630		7,080		6,509
Derivative liabilities	19,236		27,940		22,498		18,229		21,967
Other liabilities	135,559		118,544		114,781		122,314		111,482
Total liabilities	17,223,206		16,338,041		15,899,381		15,553,897		15,240,009
Equity
Common stock	79,101		78,918		78,894		78,439		78,197
Treasury stock	—		—		(4,389)		(103)		(63)
Additional paid-in capital	1,091,275		1,082,173		1,078,470		1,071,674		1,060,274
Retained earnings	678,059		629,976		580,418		531,682		480,342
Accumulated other comprehensive income, net of tax	33,919		40,083		34,598		17,259		29,249
Total equity	1,882,354		1,831,150		1,767,991		1,698,951		1,647,999
Total liabilities and equity	$	19,105,560	$	18,169,191	$	17,667,372	$	17,252,848	$	16,888,008

Selected Financial Data
(Amounts in thousands, except per share data)
(Unaudited)
	3Q16				2Q16				1Q16				4Q15				3Q15
Selected Statement of Income Data:
Net interest income	$	145,510			$	142,017			$	139,518			$	136,591			$	131,209
Net revenue ⁽¹⁾⁽²⁾	$	184,331			$	180,341			$	174,337			$	170,445			$	163,134
Operating profit ⁽¹⁾⁽²⁾	$	92,411			$	86,125			$	83,844			$	87,425			$	77,959
Provision for loan and covered loan losses	$	15,691			$	5,569			$	6,402			$	2,831			$	4,197
Income before income taxes	$	75,513			$	79,362			$	76,225			$	83,388			$	72,626
Net income available to common stockholders	$	48,892			$	50,365			$	49,552			$	52,137			$	45,268
Per Common Share Data:
Basic earnings per share	$	0.61			$	0.63			$	0.63			$	0.66			$	0.58
Diluted earnings per share	$	0.60			$	0.62			$	0.62			$	0.65			$	0.57
Dividends declared	$	0.01			$	0.01			$	0.01			$	0.01			$	0.01
Book value (period end)⁽¹⁾	$	23.64			$	23.04			$	22.29			$	21.48			$	20.90
Tangible book value (period end) ⁽¹⁾⁽²⁾	$	22.43			$	21.83			$	21.07			$	20.25			$	19.65
Market value (period end)	$	45.92			$	44.03			$	38.60			$	41.02			$	38.33
Book value multiple (period end)	1.94			x	1.91			x	1.73			x	1.91			x	1.83			x
Share Data:
Weighted-average common shares outstanding	79,007				78,849				78,550				78,366				78,144
Weighted-average diluted common shares outstanding	80,673				80,317				79,856				79,738				79,401
Common shares issued (period end)	79,640				79,464				79,443				79,099				78,865
Common shares outstanding (period end)	79,640				79,464				79,322				79,097				78,863
Performance Ratio:
Return on average common equity	10.40		%		11.20		%		11.40		%		12.29		%		11.05		%
Return on average assets	1.04		%		1.14		%		1.15		%		1.21		%		1.09		%
Return on average tangible common equity ⁽¹⁾⁽²⁾	11.04		%		11.91		%		12.16		%		13.13		%		11.85		%
Net interest margin ⁽¹⁾⁽²⁾	3.18		%		3.28		%		3.30		%		3.25		%		3.23		%
Fee revenue as a percent of total revenue⁽¹⁾	20.54		%		20.47		%		19.16		%		19.28		%		18.88		%
Non-interest income to average assets	0.80		%		0.84		%		0.78		%		0.75		%		0.74		%
Non-interest expense to average assets	1.96		%		2.12		%		2.09		%		1.92		%		2.04		%
Net overhead ratio⁽¹⁾	1.16		%		1.29		%		1.32		%		1.16		%		1.30		%
Efficiency ratio ⁽¹⁾⁽²⁾	49.87		%		52.24		%		51.91		%		48.71		%		52.21		%
Balance Sheet Ratios:
Loans to deposits (period end)⁽³⁾	94.61		%		96.42		%		93.04		%		92.48		%		94.11		%
Average interest-earning assets to average interest-bearing liabilities	153.16		%		151.10		%		153.64		%		152.94		%		149.67		%
Capital Ratios (period end):
Total risk-based capital⁽¹⁾	12.41		%		12.42		%		12.56		%		12.37		%		12.28		%
Tier 1 risk-based capital ⁽¹⁾	10.64		%		10.66		%		10.76		%		10.56		%		10.39		%
Tier 1 leverage ratio⁽¹⁾	10.43		%		10.56		%		10.50		%		10.35		%		10.35		%
Common equity Tier 1 ⁽¹⁾	9.71		%		9.70		%		9.76		%		9.54		%		9.35		%
Tangible common equity to tangible assets⁽¹⁾⁽²⁾	9.40		%		9.60		%		9.51		%		9.34		%		9.23		%
Total equity to total assets	9.85		%		10.08		%		10.01		%		9.85		%		9.75		%


⁽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.

Selected Financial Data (continued)
(Dollars in thousands)
(Unaudited)
	3Q16		2Q16		1Q16		4Q15		3Q15
Additional Selected Information:
Decrease (increase) credit valuation adjustment on capital markets derivatives ⁽¹⁾	$	910	$	(1,033)	$	(1,904)	$	1,043	$	(1,227)
Salaries and employee benefits:
Salaries and wages	$	30,923	$	30,335	$	28,963	$	28,113	$	28,143
Share-based costs	4,728		4,618		6,357		4,871		4,509
Incentive compensation and commissions	15,604		15,882		13,307		14,676		13,308
Payroll taxes, insurance and retirement costs	4,634		4,491		9,712		4,959		4,059
Total salaries and employee benefits	$	55,889	$	55,326	$	58,339	$	52,619	$	50,019
Loan and collection expense:
Loan origination and servicing expense	$	1,716	$	1,666	$	1,297	$	1,445	$	1,522
Loan remediation expense	256		351		235		309		802
Total loan and collection expense	$	1,972	$	2,017	$	1,532	$	1,754	$	2,324
Transaction related expenses	$	106	$	6,270	$	—	$	—	$	—
Assets under management and administration (AUMA):
Personal managed	$	2,068,772	$	2,017,797	$	1,867,572	$	1,872,737	$	1,839,829
Corporate and institutional managed	2,653,264		2,526,043		1,592,394		1,787,187		1,800,522
Total managed assets	4,722,036		4,543,840		3,459,966		3,659,924		3,640,351
Custody assets	5,326,757		6,145,445		6,161,827		3,631,149		3,519,364