PrivateBancorp Reports Third Quarter Results

Solid operating performance; Net income of $0.06 per share

Oct 26, 2010, 07:30 ET from PrivateBancorp, Inc.

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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