PrivateBancorp Reports Third Quarter Results
Solid operating performance; Net income of $0.06 per share
CHICAGO, Oct. 26 /PRNewswire-FirstCall/ -- PrivateBancorp, Inc. (Nasdaq: PVTB) today reported net income of $4.5 million, or $0.06 per diluted share, for the third quarter 2010, compared to a net loss of $31.2 million, or $0.68 per diluted share, for the third quarter 2009. For the nine months ended September 30, 2010, the Company had a net loss of $20.6 million, or $0.29 per diluted share, compared to a net loss of $23.9 million, or $0.62 per diluted share, for the nine months ended September 30, 2009.
"In the third quarter, we recorded net new loan growth, delivered solid operating performance and returned to profitability through consistent execution of our commercial banking strategy," said Larry D. Richman, President and Chief Executive Officer, PrivateBancorp. "Our focus on credit portfolio management activity resulted in lower provision expense and total non-performing assets were in-line with our expectations. However, with the uncertain economy and challenges in commercial real estate, resolution of problem assets will take time. As we work through the cycle, we continue to drive our strategy to be a leading middle market commercial bank."
Third Quarter Results
- Non-performing assets were $462.1 million in the third quarter, non-performing loans remained flat and other real estate owned (OREO) increased $22.3 million from second quarter 2010. The allowance for loan losses was $223.4 million, or 2.48 percent of total loans.
- Net revenue was relatively flat from the second quarter at $123.2 million, while lower expenses contributed to a 14 percent increase in operating profit. Net interest margin was 3.31 percent, or 3.28 percent exclusive of covered asset accretion.
- Total loans were $9.0 billion at quarter-end, with $140.7 million of net loan growth in the third quarter. Total deposits were $10.5 billion at quarter end, down slightly from the end of second quarter 2010.
- Total risk-based capital ratio was 14.40 percent, Tier 1 capital ratio was 12.25 percent, leverage ratio was 10.71 percent, Tier 1 common capital ratio was 7.79 percent and tangible common equity ratio was 7.17 percent.
Credit Quality
Non-performing assets were up over the second quarter, due mostly to increased OREO as loans moved through the cycle. Based on pending asset sales, management anticipates non-performing assets will moderate in the fourth quarter.
The third quarter 2010 provision for loan losses was $40.0 million, excluding covered asset provision, down from $90.0 million in the third quarter 2009 and $45.4 million in the second quarter 2010. Lower provision expense reflects stabilization of underlying collateral values and non-performing loan inflows in-line with second quarter levels. The allowance for loan losses as a percentage of total loans was 2.48 percent at September 30, 2010, compared to 2.14 percent at September 30, 2009, and 2.63 percent at June 30, 2010. The decrease in the allowance reflects the continued moderation of risk in the portfolio, as well as resolution of non-performing credits within the workout process. The allowance for loan losses as a percentage of non-performing loans was 60 percent at the end of third quarter 2010, compared to 54 percent at September 30, 2009, and 63 percent at June 30, 2010.
Net charge-offs were $49.1 million for the quarter ended September 30, 2010, up from $37.3 million for the third quarter 2009 and down from $49.8 million for the second quarter 2010. Approximately 90 percent of net charge-offs were commercial real estate, construction and related loans in the third quarter 2010.
Non-performing assets totaled $462.1 million at September 30, 2010, compared to $396.6 million at September 30, 2009, and $438.9 million at June 30, 2010. Non-performing assets to total assets were 3.67 percent at September 30, 2010, compared to 3.29 percent at September 30, 2009, and 3.48 percent at June 30, 2010. Approximately 67 percent of non-performing loans at September 30, 2010, were commercial real estate and construction loans.
Restructured loans accruing interest were $60.7 million at the end of third quarter 2010, compared to $4.0 million at the end of second quarter 2010. This increase primarily represents three large credit relationships where management identified restructuring opportunities.
Credit quality results exclude $419.9 million in covered assets as of the end of the third quarter, referring to certain assets acquired through an FDIC-assisted transaction that are subject to a loss-sharing agreement, compared to $530.1 million in the third quarter 2009 and $434.8 million in the second quarter 2010.
Operating Performance
Operating profit increased 14 percent primarily due to lower operating expense and reduced cost of funds. Revenue was relatively flat despite an $8.0 million decline in accretion from covered assets, as the Company generated increased revenue from the commercial banking business. Income from treasury management, mortgage banking and loan fees was higher. Credit and collection costs and employee expenses were down quarter-over-quarter, driving the decrease in operating costs and positively impacting the efficiency ratio.
Net income increased to $4.5 million, or $0.06 per diluted share, in the third quarter 2010, up from a net loss of $31.2 million, or $0.68 per diluted share, in the third quarter 2009, and a net loss of $818,000, or $0.01 per diluted share in the second quarter 2010.
Net revenue was $123.2 million in the third quarter 2010, compared to $101.2 million in the third quarter 2009 and $124.2 million in the second quarter 2010. Operating profit (the sum of net interest income and non-interest income less non-interest expense) was $55.1 million in the third quarter 2010, an increase from $44.3 million in the third quarter 2009 and $48.2 million in the second quarter 2010.
Net interest income was $99.0 million in the third quarter 2010, compared to $87.4 million for the third quarter 2009 and $103.3 million in the second quarter 2010. Net interest income reflects the impact of deposit repricing and a change in asset mix, as well as a reduction, as anticipated, in accretion from covered assets. Net interest income, excluding covered asset accretion, increased 3 percent, over the second quarter.
Net interest margin was 3.31 percent for the third quarter 2010, compared to 3.09 percent in the third quarter 2009 and 3.41 percent for the second quarter 2010. Excluding covered asset accretion, the net interest margin was 3.28 percent for the third quarter 2010, up from 3.13 percent in the second quarter 2010.
Non-interest income was $23.4 million in the third quarter 2010, compared to $12.9 million in the third quarter 2009 and $20.0 million in the second quarter 2010. The third quarter 2010 results included a net securities gain of $3.0 million.
The Company's emphasis on developing client relationships is reflected in the non-interest income results. Treasury management was up 3 percent from last quarter to $4.4 million and continues to drive fee income. Capital markets revenue benefitted from continued strong foreign exchange business but was down compared to the second quarter due to the uneven nature of the rates business.
Mortgage banking income was up by approximately $1 million as clients took advantage of historically low rates in the market. New business also drove an increase in loan and letter of credit fees. Finally, wealth management fee income declined compared to the second quarter, which experienced a seasonal lift from tax preparation fees.
Expenses
Non-interest expense was $68.1 million in the third quarter 2010, compared to $56.8 million in the third quarter 2009 and $76.0 million in the second quarter 2010. Third quarter 2010 non-interest expense included a decrease in credit and collection costs and salary and benefit expense. The efficiency ratio was 55.3 percent in the third quarter 2010, compared to 56.2 percent in the third quarter 2009 and 61.2 percent in the second quarter 2010.
Balance Sheet
The Company reported $140.7 million of net loan growth in the third quarter, primarily within its commercial and industrial line of business, which saw a 6 percent, or $293.0 million, increase in commercial and industrial loans. The company continued to reduce its real estate exposure, resulting in a 4 percent, or $115.8 million, decline in commercial real estate loans in the third quarter.
Total assets were $12.6 billion at September 30, 2010, compared to $12.1 billion at September 30, 2009, and $12.6 billion at June 30, 2010.
Total loans were $9.0 billion at the end of the third quarter 2010, compared to $9.0 billion at the end of the third quarter 2009 and $8.9 billion at June 30, 2010. Commercial and industrial loans accounted for 56 percent of total loans, while commercial real estate loans were 29 percent at the end of the third quarter 2010.
Total deposits were $10.5 billion at September 30, 2010, compared to $9.5 billion at September 30, 2009, and $10.6 billion at June 30, 2010. Client deposits, representing 96 percent of total deposits, were $10.1 billion at the end of the third quarter 2010, compared to $8.9 billion at the end of third quarter 2009 and $10.3 billion at June 30, 2010. Client deposits at September 30, 2010, included $2.2 billion in non-interest bearing deposits. Brokered deposits (excluding $828.5 million in client CDARS® deposits) were 4 percent of total deposits at the end of the third quarter 2010, compared to 7 percent a year ago and 2 percent at the end of the second quarter 2010.
The Company's investment securities portfolio was $2.1 billion at September 30, 2010, compared to $1.7 billion at September 30, 2009, and $2.1 billion at June 30, 2010. Net unrealized gains were $78.7 million, compared to $61.5 million at the end of the third quarter 2009 and $77.0 million at the end of the second quarter 2010. The securities portfolio is primarily composed of U.S. government agency backed mortgage pools, agency collateralized mortgage obligations, and investment grade municipal bonds.
Federal funds sold and other short-term investments were $532.6 million at the end of the third quarter 2010, up from $332.2 million at the end of third quarter 2009 and down from $769.8 million in the second quarter 2010. The quarter-over-quarter decrease was due to funding loan growth and meeting client liquidity needs.
Funds borrowed, which include federal funds purchased, FHLB advances, trust preferred securities and borrowings under the Company's credit facilities was $619.2 million at September 30, 2010, compared to $1.3 billion at September 30, 2009, and $637.8 million at June 30, 2010.
Capital
As of September 30, 2010, the total risk-based capital ratio was 14.40 percent, the Tier 1 risk-based capital ratio was 12.25 percent, and the leverage ratio was 10.71 percent. Tier 1 common capital ratio was 7.79 percent and tangible common equity ratio was 7.17 percent at the end of the third quarter 2010.
Quarterly Conference Call and Webcast Presentation
PrivateBancorp will host a conference call on Tuesday, October 26, 2010, at 10 a.m. CT. The call may be accessed by telephone at (888) 782-9127 (U.S. and Canada) or (706) 634-5643 (International) and entering passcode #12940896. A live webcast of the call can be accessed on the Company website at www.theprivatebank.com by visiting the Investor Relations tab under the About Us section. A rebroadcast will be available beginning approximately two hours after the call until midnight on November 2, 2010, by calling (800) 642-1687 (U.S. and Canada) or (706) 645-9291 (International) and entering passcode #12940896.
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 September 30, 2010, the Company had 34 offices in 10 states and $12.6 billion in assets. The Company website is www.theprivatebank.com.
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, strategies, or events is inherently uncertain. Factors which could cause actual results to differ from those reflected in forward looking statements include, but are not limited to: unforeseen credit quality problems or further deterioration in asset quality that could result in charge-offs greater than the Company has provided for in its allowance for loan and lease losses; the occurrence of unexpected events that adversely impact one or more large credits; continued declines in commercial real estate values in the Company's market areas; slower than anticipated economic recovery or further deterioration in economic conditions; unanticipated withdrawals of significant client deposits; unavailability in the future of sufficient or cost-effective sources of liquidity or funding; difficulty in raising capital on acceptable terms when necessary or required; an inability to retain or attract key personnel; potential for significant charges if our deferred tax or goodwill assets suffer impairment; unanticipated changes in interest rates or significant tightening of credit spreads; competitive pricing pressures; uncertainty regarding implications of the Dodd-Frank Act and the rules and regulations to be adopted in connection with implementation of legislation; other legislative or regulatory changes affecting financial services companies and/or the products and services offered by financial services companies; or failures or disruptions to the Company's data processing or other information systems. These risks and uncertainties should be considered in evaluating forward-looking statements and undue reliance should not be placed on our forward-looking statements. The Company assumes no obligation to update publicly any of these statements in light of future events unless required under the federal securities laws.
Non-GAAP Measures
This press release contains both financial measures based on accounting principles generally accepted in the United States (GAAP) and non-GAAP based financial measures. The Company believes that these non-GAAP financial measures provide information useful to investors in understanding the underlying operational performance of the Company, its business, and performance trends and facilitates comparisons with the performance of others in the banking industry. Where non-GAAP financial measures are used, the comparable GAAP financial measure, as well as the reconcilement to the comparable GAAP financial measure, can be found in this press release. These disclosures should not be viewed as a substitute for operating results determined in accordance with GAAP, nor are they necessarily comparable to non-GAAP performance measures that may be presented by other companies.
Editor's Note: Financial highlights attached.
Consolidated Income Statements |
||||||||
Unaudited |
||||||||
(Amounts in thousands except per share data) |
||||||||
Three Months Ended |
Nine Months Ended |
|||||||
September 30, |
September 30, |
|||||||
2010 |
2009 |
2010 |
2009 |
|||||
Interest Income |
||||||||
Loans, including fees |
$105,608 |
$107,749 |
$329,509 |
$296,690 |
||||
Federal funds sold and other short-term investments |
376 |
323 |
1,584 |
772 |
||||
Securities: |
||||||||
Taxable |
16,996 |
14,799 |
48,863 |
42,991 |
||||
Exempt from Federal income taxes |
1,661 |
1,797 |
5,131 |
5,435 |
||||
Total interest income |
124,641 |
124,668 |
385,087 |
345,888 |
||||
Interest Expense |
||||||||
Interest-bearing deposits |
675 |
932 |
2,446 |
1,798 |
||||
Savings deposits and money market accounts |
8,512 |
8,013 |
26,994 |
20,613 |
||||
Brokered and other time deposits |
8,130 |
18,170 |
29,091 |
65,376 |
||||
Short-term borrowings |
1,297 |
1,649 |
4,126 |
6,481 |
||||
Long-term debt |
7,068 |
8,469 |
21,820 |
26,198 |
||||
Total interest expense |
25,682 |
37,233 |
84,477 |
120,466 |
||||
Net interest income |
98,959 |
87,435 |
300,610 |
225,422 |
||||
Provision for loan and covered asset losses |
41,435 |
90,016 |
159,375 |
129,342 |
||||
Net interest income after provision for |
||||||||
loan and covered asset losses |
57,524 |
(2,581) |
141,235 |
96,080 |
||||
Non-interest Income |
||||||||
Wealth management |
4,306 |
4,084 |
13,566 |
11,378 |
||||
Mortgage banking |
2,790 |
1,826 |
6,708 |
6,687 |
||||
Capital markets products |
3,104 |
(322) |
7,495 |
14,741 |
||||
Treasury management |
4,406 |
3,067 |
12,295 |
6,782 |
||||
Bank owned life insurance |
428 |
444 |
1,283 |
1,286 |
||||
Other income, service charges, and fees |
5,297 |
4,093 |
14,161 |
9,741 |
||||
Net securities gains (losses) |
3,029 |
(309) |
2,873 |
7,530 |
||||
Early extinguishment of debt |
- |
- |
- |
(985) |
||||
Total non-interest income |
23,360 |
12,883 |
58,381 |
57,160 |
||||
Non-interest Expense |
||||||||
Salaries and employee benefits |
34,412 |
23,212 |
111,286 |
92,633 |
||||
Net occupancy expense |
7,508 |
7,004 |
22,550 |
19,131 |
||||
Technology and related costs |
2,310 |
2,565 |
7,777 |
7,096 |
||||
Marketing |
2,039 |
2,500 |
6,504 |
6,275 |
||||
Professional fees |
2,708 |
5,759 |
9,911 |
10,765 |
||||
Investment manager expenses |
581 |
581 |
1,859 |
1,746 |
||||
Net foreclosed property expenses |
3,075 |
2,454 |
8,164 |
3,865 |
||||
Supplies and printing |
292 |
295 |
904 |
1,029 |
||||
Postage, telephone, and delivery |
779 |
803 |
2,610 |
2,205 |
||||
Insurance |
7,113 |
4,603 |
18,186 |
17,592 |
||||
Amortization of intangibles |
413 |
547 |
1,243 |
1,201 |
||||
Loan and collection |
3,405 |
1,388 |
10,594 |
5,091 |
||||
Other expenses |
3,442 |
5,124 |
15,862 |
10,258 |
||||
Total non-interest expense |
68,077 |
56,835 |
217,450 |
178,887 |
||||
Income (loss) before income taxes |
12,807 |
(46,533) |
(17,834) |
(25,647) |
||||
Income tax provision (benefit) |
4,786 |
(18,789) |
(7,656) |
(11,008) |
||||
Net income (loss) |
8,021 |
(27,744) |
(10,178) |
(14,639) |
||||
Net income attributable to noncontrolling interests |
71 |
66 |
217 |
183 |
||||
Net income (loss) attributable to controlling interests |
7,950 |
(27,810) |
(10,395) |
(14,822) |
||||
Preferred stock dividends and discount accretion |
3,405 |
3,385 |
10,198 |
9,054 |
||||
Net income (loss) available to common stockholders |
$4,545 |
($31,195) |
($20,593) |
($23,876) |
||||
Per Common Share Data |
||||||||
Basic |
$ 0.06 |
$ (0.68) |
$ (0.29) |
$ (0.62) |
||||
Diluted |
$ 0.06 |
$ (0.68) |
$ (0.29) |
$ (0.62) |
||||
Dividends |
$ 0.01 |
$ 0.01 |
$ 0.03 |
$ 0.03 |
||||
Weighted average common shares outstanding |
70,067 |
46,047 |
69,999 |
38,756 |
||||
Diluted average common shares outstanding |
70,097 |
46,047 |
69,999 |
38,756 |
||||
Note 1: Certain reclassifications have been made to prior period financial statements to place them on a basis comparable with the current period financial statements. |
||||||||
Note 2: Due to the net loss available to common stockholders reported for the nine months ended September 30, 2010 and the three and nine months ended September 30, 2009, all potentially dilutive common stock equivalents were excluded from the diluted net loss per share computation as their inclusion would have been antidilutive. |
||||||||
Quarterly Consolidated Income Statements |
||||||||||
Unaudited |
||||||||||
(Amounts in thousands except per share data) |
||||||||||
3Q10 |
2Q10 |
1Q10 |
4Q09 |
3Q09 |
||||||
Interest Income |
||||||||||
Loans, including fees |
$105,608 |
$112,839 |
$111,062 |
$115,140 |
$107,749 |
|||||
Federal funds sold and other short-term investments |
376 |
664 |
544 |
340 |
323 |
|||||
Securities: |
||||||||||
Taxable |
16,996 |
16,417 |
15,450 |
15,672 |
14,799 |
|||||
Exempt from Federal income taxes |
1,661 |
1,752 |
1,718 |
1,672 |
1,797 |
|||||
Total interest income |
124,641 |
131,672 |
128,774 |
132,824 |
124,668 |
|||||
Interest Expense |
||||||||||
Interest-bearing deposits |
675 |
805 |
966 |
848 |
932 |
|||||
Savings deposits and money market accounts |
8,512 |
9,368 |
9,114 |
9,022 |
8,013 |
|||||
Brokered and other time deposits |
8,130 |
9,537 |
11,424 |
13,959 |
18,170 |
|||||
Short-term borrowings |
1,297 |
1,383 |
1,446 |
1,613 |
1,649 |
|||||
Long-term debt |
7,068 |
7,247 |
7,505 |
7,820 |
8,469 |
|||||
Total interest expense |
25,682 |
28,340 |
30,455 |
33,262 |
37,233 |
|||||
Net interest income |
98,959 |
103,332 |
98,319 |
99,562 |
87,435 |
|||||
Provision for loan and covered asset losses |
41,435 |
45,392 |
72,548 |
70,077 |
90,016 |
|||||
Net interest income (loss) after provision for |
||||||||||
loan and covered asset losses |
57,524 |
57,940 |
25,771 |
29,485 |
(2,581) |
|||||
Non-interest Income |
||||||||||
Wealth management |
4,306 |
4,836 |
4,424 |
4,081 |
4,084 |
|||||
Mortgage banking |
2,790 |
1,797 |
2,121 |
2,243 |
1,826 |
|||||
Capital markets products |
3,104 |
4,113 |
278 |
2,409 |
(322) |
|||||
Treasury management |
4,406 |
4,281 |
3,608 |
3,366 |
3,067 |
|||||
Bank owned life insurance |
428 |
420 |
435 |
442 |
444 |
|||||
Other income, service charges, and fees |
5,297 |
4,691 |
4,173 |
1,918 |
4,093 |
|||||
Net securities gains (losses) |
3,029 |
(185) |
29 |
(149) |
(309) |
|||||
Total non-interest income |
23,360 |
19,953 |
15,068 |
14,310 |
12,883 |
|||||
Non-interest Expense |
||||||||||
Salaries and employee benefits |
34,412 |
37,485 |
39,389 |
31,020 |
23,212 |
|||||
Net occupancy expense |
7,508 |
7,747 |
7,295 |
7,039 |
7,004 |
|||||
Technology and related costs |
2,310 |
2,424 |
3,043 |
3,503 |
2,565 |
|||||
Marketing |
2,039 |
2,363 |
2,102 |
3,568 |
2,500 |
|||||
Professional fees |
2,708 |
3,000 |
4,203 |
5,562 |
5,759 |
|||||
Investment manager expenses |
581 |
643 |
635 |
576 |
581 |
|||||
Net foreclosed property expenses |
3,075 |
3,686 |
1,403 |
1,810 |
2,454 |
|||||
Supplies and printing |
292 |
322 |
290 |
436 |
295 |
|||||
Postage, telephone, and delivery |
779 |
866 |
965 |
855 |
803 |
|||||
Insurance |
7,113 |
5,654 |
5,419 |
5,015 |
4,603 |
|||||
Amortization of intangibles |
413 |
415 |
415 |
536 |
547 |
|||||
Loan and collection |
3,405 |
4,610 |
2,579 |
4,526 |
1,388 |
|||||
Other expenses |
3,442 |
6,787 |
5,633 |
4,082 |
5,124 |
|||||
Total non-interest expense |
68,077 |
76,002 |
73,371 |
68,528 |
56,835 |
|||||
Income (loss) before income taxes |
12,807 |
1,891 |
(32,532) |
(24,733) |
(46,533) |
|||||
Income tax provision (benefit) |
4,786 |
(766) |
(11,676) |
(9,556) |
(18,789) |
|||||
Net income (loss) |
8,021 |
2,657 |
(20,856) |
(15,177) |
(27,744) |
|||||
Net income attributable to noncontrolling interests |
71 |
76 |
70 |
64 |
66 |
|||||
Net income (loss) attributable to controlling interests |
7,950 |
2,581 |
(20,926) |
(15,241) |
(27,810) |
|||||
Preferred stock dividends and discount accretion |
3,405 |
3,399 |
3,394 |
3,389 |
3,385 |
|||||
Net income (loss) available to common stockholders |
$4,545 |
(818) |
($24,320) |
($18,630) |
($31,195) |
|||||
Per Common Share Data |
||||||||||
Basic |
$ 0.06 |
$ (0.01) |
$ (0.35) |
$ (0.30) |
$ (0.68) |
|||||
Diluted |
$ 0.06 |
$ (0.01) |
$ (0.35) |
$ (0.30) |
$ (0.68) |
|||||
Dividends |
$ 0.01 |
$ 0.01 |
$ 0.01 |
$ 0.01 |
$ 0.01 |
|||||
Weighted average common shares outstanding |
70,067 |
69,995 |
69,933 |
61,608 |
46,047 |
|||||
Diluted average common shares outstanding |
70,097 |
69,995 |
69,933 |
61,608 |
46,047 |
|||||
Note 1: Due to the net loss available to common stockholders reported for each of the four trailing quarters, all potentially dilutive common stock equivalents were excluded from the diluted net loss per share computation as their inclusion would have been antidilutive. |
||||||||||
Consolidated Balance Sheets |
||||||||||
(Dollars in thousands) |
||||||||||
09/30/10 |
06/30/10 |
03/31/10 |
12/31/09 |
09/30/09 |
||||||
unaudited |
unaudited |
unaudited |
audited |
unaudited |
||||||
Assets |
||||||||||
Cash and due from banks |
$144,298 |
$111,997 |
$107,618 |
$320,160 |
$199,703 |
|||||
Fed funds sold and other short-term investments |
532,637 |
769,803 |
1,146,814 |
218,935 |
332,188 |
|||||
Loans held for sale |
44,271 |
20,762 |
16,224 |
28,363 |
19,000 |
|||||
Securities available-for-sale, at fair value |
2,033,527 |
2,029,962 |
1,769,138 |
1,569,541 |
1,648,313 |
|||||
Non-marketable equity investments |
25,587 |
33,825 |
29,475 |
29,413 |
30,681 |
|||||
Loans, excluding covered assets and net of unearned fees |
8,992,129 |
8,851,439 |
8,898,228 |
9,046,625 |
9,009,539 |
|||||
Allowance for loan losses |
(223,392) |
(232,411) |
(236,851) |
(221,688) |
(192,791) |
|||||
Loans, net of allowance for loan losses and unearned fees |
8,768,737 |
8,619,028 |
8,661,377 |
8,824,937 |
8,816,748 |
|||||
Covered assets |
419,865 |
434,828 |
468,939 |
502,034 |
530,059 |
|||||
Allowance for covered assets losses |
(12,174) |
(5,176) |
(5,176) |
(2,764) |
- |
|||||
Covered assets, net of allowance for covered assets |
407,691 |
429,652 |
463,763 |
499,270 |
530,059 |
|||||
Other real estate owned |
90,944 |
68,693 |
60,755 |
41,497 |
36,705 |
|||||
Premises, furniture, and equipment, net |
42,347 |
40,599 |
41,350 |
41,344 |
32,870 |
|||||
Accrued interest receivable |
34,697 |
35,278 |
34,766 |
35,562 |
35,862 |
|||||
Investment in bank owned life insurance |
48,950 |
48,521 |
48,101 |
47,666 |
47,225 |
|||||
Goodwill |
94,633 |
94,646 |
94,658 |
94,671 |
94,683 |
|||||
Other intangible assets |
17,242 |
17,655 |
18,070 |
18,485 |
19,021 |
|||||
Derivative assets |
128,891 |
113,493 |
85,152 |
71,540 |
83,784 |
|||||
Other assets |
169,513 |
177,126 |
202,975 |
191,200 |
136,825 |
|||||
Total assets |
$12,583,965 |
$12,611,040 |
$12,780,236 |
$12,032,584 |
$12,063,667 |
|||||
Liabilities |
||||||||||
Demand deposits: |
||||||||||
Non-interest bearing |
$2,173,419 |
$2,090,222 |
$1,886,427 |
$1,840,900 |
$1,565,492 |
|||||
Interest bearing |
614,049 |
738,631 |
714,700 |
752,728 |
589,298 |
|||||
Savings deposits and money market accounts |
5,039,970 |
5,066,653 |
4,691,170 |
4,053,975 |
4,038,465 |
|||||
Brokered deposits |
1,241,366 |
1,236,589 |
1,831,306 |
1,566,139 |
1,606,823 |
|||||
Time deposits |
1,461,668 |
1,437,204 |
1,498,322 |
1,678,172 |
1,741,783 |
|||||
Total deposits |
10,530,472 |
10,569,299 |
10,621,925 |
9,891,914 |
9,541,861 |
|||||
Short-term borrowings |
179,651 |
164,069 |
241,293 |
214,975 |
690,352 |
|||||
Long-term debt |
439,566 |
473,720 |
498,874 |
533,023 |
618,173 |
|||||
Accrued interest payable |
7,603 |
7,727 |
10,357 |
9,673 |
12,051 |
|||||
Derivative liabilities |
132,594 |
116,599 |
86,873 |
71,958 |
85,097 |
|||||
Other liabilities |
48,940 |
43,534 |
100,687 |
75,425 |
47,614 |
|||||
Total liabilities |
11,338,826 |
11,374,948 |
11,560,009 |
10,796,968 |
10,995,148 |
|||||
Equity |
||||||||||
Preferred stock |
238,542 |
238,185 |
237,833 |
237,487 |
237,145 |
|||||
Common stock |
70,657 |
70,630 |
70,500 |
70,444 |
46,593 |
|||||
Treasury stock |
(19,023) |
(19,003) |
(18,595) |
(18,489) |
(18,427) |
|||||
Additional paid-in-capital |
950,721 |
946,981 |
944,095 |
940,338 |
767,579 |
|||||
Retained earnings |
(44,784) |
(48,638) |
(47,112) |
(22,093) |
(2,748) |
|||||
Accumulated other comprehensive income, net |
48,776 |
47,758 |
33,403 |
27,896 |
38,161 |
|||||
Total stockholders' equity |
1,244,889 |
1,235,913 |
1,220,124 |
1,235,583 |
1,068,303 |
|||||
Noncontrolling interests |
250 |
179 |
103 |
33 |
216 |
|||||
Total equity |
1,245,139 |
1,236,092 |
1,220,227 |
1,235,616 |
1,068,519 |
|||||
Total liabilities and equity |
$12,583,965 |
$12,611,040 |
$12,780,236 |
$12,032,584 |
$12,063,667 |
|||||
Note 1: Certain reclassifications have been made to prior period financial statements to place them on a basis comparable with the current period financial statements. |
||||||||||
Selected Financial Data |
||||||||||||
Unaudited |
||||||||||||
(Amounts in thousands except per share data) |
||||||||||||
3Q10 |
2Q10 |
1Q10 |
4Q09 |
3Q09 |
||||||||
Selected Statement of Income Data: |
||||||||||||
Net interest income |
$98,959 |
$103,332 |
$98,319 |
$99,562 |
$87,435 |
|||||||
Net revenue (1) (2) |
$123,210 |
$124,209 |
$114,273 |
$114,802 |
$101,155 |
|||||||
Operating profit (1) (2) |
$55,133 |
$48,207 |
$40,902 |
$46,274 |
$44,320 |
|||||||
Income (loss) before taxes |
$12,807 |
$1,891 |
($32,532) |
($24,733) |
($46,533) |
|||||||
Net income (loss) available to common stockholders |
$4,545 |
($818) |
($24,320) |
($18,630) |
($31,195) |
|||||||
Per Common Share Data: |
||||||||||||
Basic earnings per share |
$0.06 |
($0.01) |
($0.35) |
($0.30) |
($0.68) |
|||||||
Diluted earnings per share (3) |
$0.06 |
($0.01) |
($0.35) |
($0.30) |
($0.68) |
|||||||
Dividends |
$0.01 |
$0.01 |
$0.01 |
$0.01 |
$0.01 |
|||||||
Book value (period end) (1) |
$14.10 |
$13.98 |
$13.77 |
$13.99 |
$17.48 |
|||||||
Tangible book value (period end) (1) (2) |
$12.53 |
$12.40 |
$12.19 |
$12.41 |
$15.09 |
|||||||
Market value (close) |
$11.39 |
$11.08 |
$13.70 |
$8.97 |
$24.46 |
|||||||
Book value multiple |
0.81 |
x |
0.79 |
x |
0.99 |
x |
0.64 |
x |
1.40 |
x |
||
Share Data: |
||||||||||||
Weighted average common shares outstanding |
70,067 |
69,995 |
69,933 |
61,608 |
46,047 |
|||||||
Diluted average common shares outstanding (3) |
70,097 |
69,995 |
69,933 |
61,608 |
46,047 |
|||||||
Common shares issued (at period end) |
71,964 |
71,978 |
71,877 |
71,869 |
48,104 |
|||||||
Common shares outstanding (at period end) |
71,386 |
71,403 |
71,333 |
71,332 |
47,574 |
|||||||
Performance Ratios: |
||||||||||||
Return on average assets |
0.25% |
0.08% |
-0.68% |
-0.50% |
-0.94% |
|||||||
Return on average common equity |
1.77% |
-0.33% |
-9.86% |
-7.96% |
-14.51% |
|||||||
Net interest margin (1) (2) |
3.31% |
3.41% |
3.36% |
3.48% |
3.09% |
|||||||
Fee revenue as a percent of total revenue (1) |
17.04% |
16.31% |
13.27% |
12.68% |
13.11% |
|||||||
Non-interest income to average assets |
0.74% |
0.63% |
0.49% |
0.47% |
0.43% |
|||||||
Non-interest expense to average assets |
2.16% |
2.39% |
2.39% |
2.26% |
1.91% |
|||||||
Net overhead ratio (1) |
1.42% |
1.76% |
1.90% |
1.79% |
1.48% |
|||||||
Efficiency ratio (1) (2) |
55.25% |
61.19% |
64.21% |
59.69% |
56.19% |
|||||||
Selected Financial Condition Data: |
||||||||||||
Assets under management and administration (1) |
$4,023,821 |
$3,746,934 |
$3,983,066 |
$3,983,623 |
$4,008,268 |
|||||||
Balance Sheet Ratios: |
||||||||||||
Loans to Deposits (period end) |
85.39% |
83.75% |
83.80% |
91.48% |
94.43% |
|||||||
Average interest-earning assets to average interest-bearing liabilities |
133.96% |
130.58% |
129.96% |
127.44% |
122.93% |
|||||||
Capital Ratios (period end): |
||||||||||||
Total risk-based (1) (4) |
14.40% |
14.83% |
14.91% |
14.69% |
13.42% |
|||||||
Tier 1 risk-based (1) (4) |
12.25% |
12.43% |
12.49% |
12.32% |
11.02% |
|||||||
Leverage (1) |
10.71% |
10.39% |
10.57% |
11.17% |
9.94% |
|||||||
Tier 1 common capital (1) (2) (4) |
7.79% |
7.86% |
7.86% |
7.86% |
6.45% |
|||||||
Tangible common equity to tangible assets (1) (2) |
7.17% |
7.09% |
6.87% |
7.42% |
6.01% |
|||||||
Total equity to total assets |
9.89% |
9.80% |
9.55% |
10.27% |
8.86% |
|||||||
(1) Refer to Glossary of Terms for definition. |
||||||||||||
(2) This is a non-GAAP measure, refer to Non-GAAP Measures for a reconciliation to GAAP. |
||||||||||||
(3) For the first and second quarters 2010 and the third and fourth quarters 2009, diluted shares are equal to basic shares due to the net loss. The calculation of diluted earnings per share for those periods results in anti-dilution. |
||||||||||||
(4) The second quarter 2010 ratio has been revised from prior period presentation due to correction of mathematical computation. |
||||||||||||
Note 1: Certain reclassifications have been made to prior period financial statements to place them on a basis comparable with the current period financial statements. |
||||||||||||
SOURCE PrivateBancorp, Inc.
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