PrivateBancorp Reports Third Quarter Results
Earnings per share of $0.27, up 42% on lower credit costs and loan growth of $189 million
Conference call scheduled for Oct. 10, 2012 at 4:30 p.m. EDT
CHICAGO, Oct. 10, 2012 /PRNewswire/ -- PrivateBancorp, Inc. (NASDAQ: PVTB) today reported net income available to common shareholders of $19.6 million, or $0.27 per diluted share, for the third quarter 2012, compared to $10.0 million, or $0.14 per diluted share, for the third quarter 2011, and $14.1 million, or $0.19 per diluted share, for the second quarter 2012.
For the nine months ended September 30, 2012, the Company had net income available to common shareholders of $44.5 million, or $0.61 per diluted share, compared to $23.1 million, or $0.32 per diluted share, for the nine months ended September 30, 2011.
"We posted another quarter of strong earnings momentum driven by the consistent execution of our commercial middle market business strategy and the ongoing strengthening of our asset quality position," said Larry D. Richman, President and Chief Executive Officer, PrivateBancorp, Inc. "Our emphasis on developing client relationships led to continued loan growth and increased fee revenue from cross sell of our banking products. Despite the competitive market and low interest rate environment, we have grown quarterly net revenue, excluding securities gains, by 7 percent over the past year.
"Year to date 2012, we grew total loans by more than $600 million and, at the same time, increased deposits and fee income, and improved asset quality. The continued execution of our strategy and depth of the client relationships that we are building position us well for future opportunities."
Quarter Highlights
- Net income was $19.6 million, up 39 percent from the second quarter 2012, primarily as a result of lower credit related costs, as well as loan growth and increased fee income.
- Net interest income of $105.4 million was consistent with the second quarter 2012. Interest income from higher average loan balances offset the impact of lower loan and investment yields, while cost of funds was relatively flat.
- Deposits increased $625 million, or 6 percent, during the quarter to $11.4 billion at September 30, 2012, including $375 million of non-interest bearing accounts.
- Asset quality continued to improve during the quarter with non-performing loans declining 14 percent and early-stage problem loans declining 20 percent from June 30, 2012. The provision for loan losses declined to $13.2 million, a reduction of $4.2 million from the prior quarter.
- Total loans grew $189 million, an annualized rate of 8 percent, to $9.6 billion at September 30, 2012, largely driven by growth in commercial and industrial loans.
Operating Performance
Net revenue was $134.0 million in the third quarter 2012, an increase of 4 percent compared to $129.4 million in the third quarter 2011, and up slightly as compared to $132.3 million in the second quarter 2012. Operating profit was $52.2 million in the third quarter 2012, compared to $54.4 million in the same period prior year and $48.4 million in the prior quarter. The third quarter 2011 results included $4.4 million of net securities gains compared to a net loss of $211,000 for third quarter 2012. As compared to the second quarter of 2012, operating profit increased 8 percent, largely as a result of lower net foreclosed property expenses and an increase in fee income.
Net interest income was $105.4 million for the third quarter 2012, an increase of 4 percent from $101.1 million for the third quarter 2011, and flat as compared to second quarter 2012. Average loan balances increased $840.6 million as compared to the same period prior year, and $136.5 million as compared to the prior quarter. Incremental interest income generated from higher loan balances during the quarter was offset by the decline in yields on the loan and investment portfolios. Competitive pricing pressures, change in mix and the low interest rate environment have led to lower yields on the loan and investment portfolios, while the Company's cost of funds has remained relatively flat. Yield trends are likely to continue to pressure net interest margin given the current operating environment.
Net interest margin was 3.35 percent for the third quarter 2012, down from 3.49 percent in the third quarter 2011 and 3.46 percent in the second quarter 2012. Higher federal funds sold balances during the third quarter 2012, primarily due to increased client deposit flows, reduced net interest margin by 5 basis points as these balances generated only minimal interest income. Lower securities investment yields and lower loan yields reduced net interest margin by 6 basis points from the previous quarter.
Non-interest income was $27.8 million in the third quarter 2012, flat compared to the third quarter 2011, and an increase of 6 percent compared to the second quarter 2012. The third quarter 2011 non-interest income included $4.4 million of net securities gains compared to a net loss of $211,000 for third quarter 2012. Growth in mortgage banking, syndication and treasury management fees in the third quarter 2012 contributed to increased non-interest income. Syndication fees, a component of loan and credit related fees, totaled $2.7 million in the third quarter 2012, compared to $908,000 for the third quarter 2011, and $2.0 million for second quarter 2012. Like capital markets revenue, syndication fees tend to fluctuate from quarter to quarter depending on client needs, market conditions and loan origination trends. Capital markets revenue was $5.8 million in the third quarter 2012, compared to $5.5 million in the same period prior year and $6.0 million in the second quarter 2012. Third quarter 2012 capital markets revenue included a $5,000 positive credit valuation adjustment. The third quarter 2011 results included a negative credit valuation adjustment of $1.2 million and the second quarter 2012 results included a negative credit valuation adjustment of $830,000.
Expenses
Non-interest expense was $81.7 million for the third quarter 2012, compared to $75.0 million for the third quarter 2011 and $83.9 million for the second quarter 2012. The increase in non-interest expense, as compared to the same period prior year, is primarily attributable to higher salaries and employee benefits expense, primarily due to higher costs associated with share-based compensation programs and performance-based incentives. For the third quarter 2012, the 3 percent decline in non-interest expense from the previous quarter is primarily due to lower net foreclosed property expense resulting from lower valuation adjustments, which totaled $6.2 million in the third quarter 2012 compared to $9.2 million in the second quarter 2012. The increase in salaries and employee benefits expense as compared to second quarter 2012 is largely a result of an increase in the Company's accrual for performance-based compensation.
The effective tax rate for the quarter was 39.3 percent, down from 43.0 percent in the second quarter 2012 primarily due to increased tax benefits associated with stock-based compensation. For the first nine months of 2012, the effective tax rate was 40.8 percent. The Company estimates an effective tax rate for the full year 2012 ranging from 41 to 42 percent.
Credit Quality
The Company's asset quality continued to improve during the third quarter 2012. Non-performing assets declined to $277.7 million at September 30, 2012, down 34 percent from $421.1 million at September 30, 2011, and down 13 percent from $319.2 million at June 30, 2012. Non-performing assets to total assets were 2.09 percent at September 30, 2012, compared to 3.50 percent a year ago and 2.47 percent at June 30, 2012. Non-performing loans were $179.9 million at the end of the third quarter 2012, a 41 percent decline from $304.7 million a year ago, and a 14 percent decline from $209.3 million at the end of the second quarter 2012. During the third quarter 2012, non-performing loan inflows were $38.9 million, including $15.5 million of restructured loans accruing interest, down considerably from $57.7 million in the prior quarter. Special mention and potential problem loans declined 56 percent from the third quarter 2011, and 20 percent from the second quarter 2012. The Company expects problem assets will continue to trend lower for the fourth quarter 2012.
During the third quarter 2012, the Company disposed of $45 million of problem assets, with an incremental charge of less than 1 percent based on the carrying value net of specific reserves at the time of disposition.
The reduction of the allowance for loan losses reflects the overall improvement in asset quality, the reduced requirement for specific reserves and lower charge-offs. At September 30, 2012, the allowance for loan losses was $166.9 million, or 1.73 percent of total loans, compared to $200.0 million, or 2.31 percent of total loans, at September 30, 2011, and $174.3 million, or 1.85 percent of total loans at June 30, 2012. As a percentage of non-performing loans, the allowance for loan losses was 93 percent at the end of the third quarter 2012, compared to 66 percent a year ago, and 83 percent at the end of the second quarter 2012.
Charge-offs declined to $23.1 million for the third quarter 2012, from $42.0 million for the same period prior year and $33.9 million for the prior quarter. The third quarter 2012 provision for loan losses, excluding covered loan provision, was $13.2 million, down from $32.3 million for the same period prior year and $17.4 million for the prior quarter.
Credit quality results exclude covered assets acquired through an FDIC-assisted transaction that are subject to a loss-sharing agreement.
Balance Sheet
Total assets were $13.3 billion at September 30, 2012, up from $12.9 billion at June 30, 2012, and total loans were $9.6 billion at September 30, 2012, compared to $9.4 billion at June 30, 2012. The 2 percent growth in total loans this quarter was primarily from commercial and industrial loans. The Company funded $325.9 million in loans to new relationships during the third quarter 2012.
Total deposits were $11.4 billion at September 30, 2012, up from $10.7 billion at June 30, 2012. Non interest-bearing deposits comprised 29 percent of total deposits at September 30, 2012, up 2 percentage points as compared to total deposits at June 30, 2012. The increase in deposits during the third quarter 2012 reflects a focused initiative to organically grow deposits. The deposit balances of the Company's commercial clients may fluctuate depending on their cash management and liquidity needs.
The Company's investment securities portfolio was $2.4 billion at September 30, 2012, flat as compared to the end of the prior quarter. The securities portfolio is primarily comprised of U.S. government agency backed mortgage pools, agency collateralized mortgage obligations, and investment grade municipal bonds.
Capital
As of September 30, 2012, the Company's total risk-based capital ratio was 13.90 percent, the Tier 1 risk-based capital ratio was 12.24 percent and the leverage ratio was 11.15 percent. Tier 1 common capital ratio was 8.12 percent and tangible common equity ratio was 7.70 percent at the end of the third quarter 2012.
Quarterly Conference Call and Webcast Presentation
PrivateBancorp, Inc. will host a conference call on Wednesday, October 10, 2012, at 3:30 p.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: 34461639. 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 October 24, 2012, by calling (855) 859-2056 (U.S. and Canada) or (404) 537-3406 (International) and entering passcode: 34461639.
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, 2012, the Company had 35 offices in 10 states and $13.3 billion in assets. The Company website is www.theprivatebank.com.
Forward-Looking Statements
Statements contained 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, but are not limited to: unforeseen credit quality problems or further deterioration in problem assets that could result in charge-offs greater than we have anticipated in our allowance for loan losses; adverse developments impacting one or more large credits; the extent of further deterioration in real estate values in our market areas, particularly in the Chicago area; difficulties in resolving problem credits or slower than anticipated dispositions of other real estate owned which may result in increased losses or higher credit-related operating costs; continued uncertainty regarding U.S. and global economic recovery and economic outlook, and ongoing volatility in market conditions, that may impact credit quality or prolong weakness in demand for loans or other banking products and services; unanticipated withdrawals of significant deposits; lack of sufficient or cost-effective sources of liquidity or funding; our ability to complete our planned capital raising transactions and fund and complete our anticipated redemption of the preferred stock and common stock warrants we issued to the U.S. Department of the Treasury; loss of key personnel or an inability to recruit and retain appropriate talent; unanticipated changes in interest rates, prolonged low interest rate environment or significant tightening of credit spreads; competitive pricing trends; uncertainty relating to recently proposed regulatory capital rules that could, depending on the nature of our assets, require us to maintain higher levels of regulatory capital; uncertainty regarding implications of recently adopted or proposed rules and regulations, or those remaining to be proposed in connection with the implementation of the Dodd-Frank Wall Street Reform and Consumer Protection Act that may negatively affect our revenues or profitability; other legislative, regulatory or accounting changes affecting financial services companies and/or the products and services offered by financial services companies; or failures or disruptions to our data processing or other information or operational systems. Forward-looking statements are subject to risks, assumptions and uncertainties and could be significantly affected by many factors, including those set forth in the ÒRisk FactorsÓ section of our Form 10-K for the year ended December 31, 2011 as well as those set forth in our subsequent periodic and current reports filed with the SEC. These factors should be considered in evaluating forward- looking statements and undue reliance should not be placed on our forward-looking statements. 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-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. If 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 |
||||||||
(Amounts in thousands except per share data) |
||||||||
Three Months Ended |
Nine Months Ended |
|||||||
September 30, |
September 30, |
|||||||
2012 |
2011 |
2012 |
2011 |
|||||
unaudited |
unaudited |
unaudited |
unaudited |
|||||
Interest Income |
||||||||
Loans, including fees |
$ 106,358 |
$ 102,174 |
$ 315,039 |
$ 310,212 |
||||
Federal funds sold and other short-term investments |
248 |
231 |
513 |
966 |
||||
Securities: |
||||||||
Taxable |
14,033 |
15,196 |
44,267 |
46,154 |
||||
Exempt from Federal income taxes |
1,389 |
1,293 |
4,025 |
4,166 |
||||
Total interest income |
122,028 |
118,894 |
363,844 |
361,498 |
||||
Interest Expense |
||||||||
Interest-bearing demand deposits |
958 |
625 |
2,393 |
1,854 |
||||
Savings deposits and money market accounts |
4,206 |
5,356 |
13,073 |
18,100 |
||||
Brokered and time deposits |
5,860 |
5,895 |
16,271 |
19,115 |
||||
Short-term borrowings |
101 |
466 |
366 |
1,859 |
||||
Long-term debt |
5,495 |
5,463 |
16,611 |
16,425 |
||||
Total interest expense |
16,620 |
17,805 |
48,714 |
57,353 |
||||
Net interest income |
105,408 |
101,089 |
315,130 |
304,145 |
||||
Provision for loan and covered loan losses |
13,509 |
32,615 |
58,248 |
101,286 |
||||
Net interest income after provision for |
||||||||
loan and covered loan losses |
91,899 |
68,474 |
256,882 |
202,859 |
||||
Non-interest Income |
||||||||
Trust and Investments |
4,254 |
4,452 |
12,785 |
13,834 |
||||
Mortgage banking |
3,685 |
1,565 |
9,263 |
3,671 |
||||
Capital markets products |
5,832 |
5,510 |
19,214 |
13,870 |
||||
Treasury management |
5,490 |
4,590 |
15,904 |
13,368 |
||||
Loan and credit-related fees |
7,479 |
5,413 |
20,378 |
16,601 |
||||
Deposit service charges and fees and other income |
1,308 |
1,735 |
4,439 |
6,103 |
||||
Net securities (losses) gains |
(211) |
4,370 |
(396) |
5,407 |
||||
Total non-interest income |
27,837 |
27,635 |
81,587 |
72,854 |
||||
Non-interest Expense |
||||||||
Salaries and employee benefits |
44,820 |
38,841 |
129,695 |
116,034 |
||||
Net occupancy expense |
7,477 |
7,515 |
22,809 |
22,592 |
||||
Technology and related costs |
3,432 |
2,856 |
10,001 |
8,246 |
||||
Marketing |
2,645 |
2,218 |
7,863 |
6,661 |
||||
Professional services |
2,151 |
2,434 |
6,355 |
7,080 |
||||
Outsourced servicing costs |
1,802 |
1,918 |
5,605 |
5,924 |
||||
Net foreclosed property expenses |
8,596 |
7,129 |
28,725 |
20,920 |
||||
Postage, telephone, and delivery |
837 |
944 |
2,588 |
2,763 |
||||
Insurance |
3,352 |
5,393 |
11,896 |
17,825 |
||||
Loan and collection expense |
3,329 |
2,931 |
9,404 |
9,731 |
||||
Other expenses |
3,289 |
2,855 |
10,876 |
8,271 |
||||
Total non-interest expense |
81,730 |
75,034 |
245,817 |
226,047 |
||||
Income before income taxes |
38,006 |
21,075 |
92,652 |
49,666 |
||||
Income tax provision |
14,952 |
7,593 |
37,839 |
16,192 |
||||
Net income |
23,054 |
13,482 |
54,813 |
33,474 |
||||
Net income attributable to noncontrolling interests |
- |
33 |
- |
163 |
||||
Net income attributable to controlling interests |
23,054 |
13,449 |
54,813 |
33,311 |
||||
Preferred stock dividends and discount accretion |
3,447 |
3,426 |
10,325 |
10,260 |
||||
Net income available to common stockholders |
$ 19,607 |
$ 10,023 |
$ 44,488 |
$ 23,051 |
||||
Per Common Share Data |
||||||||
Basic earnings per share |
$ 0.27 |
$ 0.14 |
$ 0.62 |
$ 0.32 |
||||
Diluted earnings per share |
$ 0.27 |
$ 0.14 |
$ 0.61 |
$ 0.32 |
||||
Cash dividends declared |
$ 0.01 |
$ 0.01 |
$ 0.03 |
$ 0.03 |
||||
Weighted-average common shares outstanding |
71,010 |
70,479 |
70,915 |
70,418 |
||||
Weighted-average diluted common shares outstanding |
71,274 |
70,621 |
71,110 |
70,682 |
||||
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. |
||||||||
Quarterly Consolidated Income Statements |
|||||||||
Unaudited |
|||||||||
(Amounts in thousands except per share data) |
|||||||||
3Q12 |
2Q12 |
1Q12 |
4Q11 |
3Q11 |
|||||
Interest Income |
|||||||||
Loans, including fees |
$ 106,358 |
$ 105,142 |
$ 103,539 |
$ 102,897 |
$ 102,174 |
||||
Federal funds sold and other short-term investments |
248 |
133 |
132 |
215 |
231 |
||||
Securities: |
|||||||||
Taxable |
14,033 |
14,854 |
15,380 |
15,263 |
15,196 |
||||
Exempt from Federal income taxes |
1,389 |
1,336 |
1,300 |
1,273 |
1,293 |
||||
Total interest income |
122,028 |
121,465 |
120,351 |
119,648 |
118,894 |
||||
Interest Expense |
|||||||||
Interest-bearing demand deposits |
958 |
799 |
636 |
585 |
625 |
||||
Savings deposits and money market accounts |
4,206 |
4,265 |
4,602 |
4,857 |
5,356 |
||||
Brokered and time deposits |
5,860 |
5,394 |
5,017 |
5,561 |
5,895 |
||||
Short-term borrowings |
101 |
123 |
142 |
152 |
466 |
||||
Long-term debt |
5,495 |
5,538 |
5,578 |
5,511 |
5,463 |
||||
Total interest expense |
16,620 |
16,119 |
15,975 |
16,666 |
17,805 |
||||
Net interest income |
105,408 |
105,346 |
104,376 |
102,982 |
101,089 |
||||
Provision for loan and covered loan losses |
13,509 |
17,038 |
27,701 |
31,611 |
32,615 |
||||
Net interest income after provision for |
|||||||||
loan and covered loan losses |
91,899 |
88,308 |
76,675 |
71,371 |
68,474 |
||||
Non-interest Income |
|||||||||
Trust and Investments |
4,254 |
4,312 |
4,219 |
3,992 |
4,452 |
||||
Mortgage banking |
3,685 |
2,915 |
2,663 |
3,032 |
1,565 |
||||
Capital markets products |
5,832 |
6,033 |
7,349 |
5,471 |
5,510 |
||||
Treasury management |
5,490 |
5,260 |
5,154 |
4,813 |
4,590 |
||||
Loan and credit-related fees |
7,479 |
6,372 |
6,527 |
5,606 |
5,413 |
||||
Deposit service charges and fees and other income |
1,308 |
1,644 |
1,487 |
2,115 |
1,735 |
||||
Net securities (losses) gains |
(211) |
(290) |
105 |
364 |
4,370 |
||||
Total non-interest income |
27,837 |
26,246 |
27,504 |
25,393 |
27,635 |
||||
Non-interest Expense |
|||||||||
Salaries and employee benefits |
44,820 |
42,177 |
42,698 |
40,729 |
38,841 |
||||
Net occupancy expense |
7,477 |
7,653 |
7,679 |
7,394 |
7,515 |
||||
Technology and related costs |
3,432 |
3,273 |
3,296 |
3,142 |
2,856 |
||||
Marketing |
2,645 |
3,058 |
2,160 |
2,250 |
2,218 |
||||
Professional services |
2,151 |
2,247 |
1,957 |
2,126 |
2,434 |
||||
Outsourced servicing costs |
1,802 |
2,093 |
1,710 |
2,077 |
1,918 |
||||
Net foreclosed property expenses |
8,596 |
11,894 |
8,235 |
6,862 |
7,129 |
||||
Postage, telephone, and delivery |
837 |
882 |
869 |
953 |
944 |
||||
Insurance |
3,352 |
4,239 |
4,305 |
3,462 |
5,393 |
||||
Loan and collection expense |
3,329 |
2,918 |
3,157 |
3,840 |
2,931 |
||||
Other expenses |
3,289 |
3,424 |
4,163 |
3,395 |
2,855 |
||||
Total non-interest expense |
81,730 |
83,858 |
80,229 |
76,230 |
75,034 |
||||
Income before income taxes |
38,006 |
30,696 |
23,950 |
20,534 |
21,075 |
||||
Income tax provision |
14,952 |
13,192 |
9,695 |
9,468 |
7,593 |
||||
Net income |
23,054 |
17,504 |
14,255 |
11,066 |
13,482 |
||||
Net income attributable to noncontrolling interests |
- |
- |
- |
7 |
33 |
||||
Net income attributable to controlling interests |
23,054 |
17,504 |
14,255 |
11,059 |
13,449 |
||||
Preferred stock dividends and discount accretion |
3,447 |
3,442 |
3,436 |
3,430 |
3,426 |
||||
Net income available to common stockholders |
$ 19,607 |
$ 14,062 |
$ 10,819 |
$ 7,629 |
$ 10,023 |
||||
Per Common Share Data |
|||||||||
Basic earnings per share |
$ 0.27 |
$ 0.19 |
$ 0.15 |
$ 0.11 |
$ 0.14 |
||||
Diluted earnings per share |
$ 0.27 |
$ 0.19 |
$ 0.15 |
$ 0.11 |
$ 0.14 |
||||
Cash dividends declared |
$ 0.01 |
$ 0.01 |
$ 0.01 |
$ 0.01 |
$ 0.01 |
||||
Weighted-average common shares outstanding |
71,010 |
70,956 |
70,780 |
70,540 |
70,479 |
||||
Weighted-average diluted common shares outstanding |
71,274 |
71,147 |
70,932 |
70,713 |
70,621 |
Consolidated Balance Sheets |
|||||||||
(Dollars in thousands) |
|||||||||
09/30/12 |
06/30/12 |
03/31/12 |
12/31/11 |
09/30/11 |
|||||
unaudited |
unaudited |
unaudited |
audited |
unaudited |
|||||
Assets |
|||||||||
Cash and due from banks |
$ 143,573 |
$ 141,563 |
$ 166,062 |
$ 156,131 |
$ 171,268 |
||||
Fed funds sold and other short-term investments |
470,984 |
315,378 |
193,571 |
205,610 |
248,559 |
||||
Loans held for sale |
49,209 |
35,342 |
29,185 |
32,049 |
24,126 |
||||
Securities available-for-sale, at fair value |
1,550,516 |
1,625,649 |
1,705,649 |
1,783,465 |
1,872,587 |
||||
Securities held-to-maturity, at amortized cost |
784,930 |
693,277 |
598,066 |
490,143 |
273,200 |
||||
Non-marketable equity investments |
48,977 |
47,702 |
43,882 |
43,604 |
43,894 |
||||
Loans - excluding covered assets, net of unearned fees |
9,625,421 |
9,436,235 |
9,222,253 |
9,008,561 |
8,674,955 |
||||
Allowance for loan losses |
(166,859) |
(174,302) |
(183,844) |
(191,594) |
(200,041) |
||||
Loans, net of allowance for loan losses and unearned fees |
9,458,562 |
9,261,933 |
9,038,409 |
8,816,967 |
8,474,914 |
||||
Covered assets |
208,979 |
244,782 |
276,534 |
306,807 |
318,973 |
||||
Allowance for covered loan losses |
(21,500) |
(21,733) |
(26,323) |
(25,939) |
(16,689) |
||||
Covered assets, net of allowance for covered loan losses |
187,479 |
223,049 |
250,211 |
280,868 |
302,284 |
||||
Other real estate owned, excluding covered assets |
97,833 |
109,836 |
123,498 |
125,729 |
116,364 |
||||
Premises, furniture, and equipment, net |
40,526 |
38,177 |
37,462 |
38,633 |
39,069 |
||||
Accrued interest receivable |
36,892 |
37,089 |
36,033 |
35,732 |
32,686 |
||||
Investment in bank owned life insurance |
52,134 |
51,751 |
51,356 |
50,966 |
50,565 |
||||
Goodwill |
94,534 |
94,546 |
94,559 |
94,571 |
94,584 |
||||
Other intangible assets |
13,500 |
14,152 |
14,683 |
15,353 |
15,715 |
||||
Capital markets derivative assets |
104,697 |
102,613 |
97,805 |
101,676 |
111,248 |
||||
Other assets |
144,208 |
150,119 |
142,733 |
145,373 |
148,798 |
||||
Total assets |
$ 13,278,554 |
$ 12,942,176 |
$ 12,623,164 |
$ 12,416,870 |
$ 12,019,861 |
||||
Liabilities |
|||||||||
Demand deposits: |
|||||||||
Noninterest-bearing |
$ 3,295,568 |
$ 2,920,182 |
$ 3,054,536 |
$ 3,244,307 |
$ 2,832,481 |
||||
Interest-bearing |
893,194 |
785,879 |
714,522 |
595,238 |
611,293 |
||||
Savings deposits and money market accounts |
4,381,595 |
4,146,022 |
4,347,832 |
4,378,220 |
4,392,697 |
||||
Brokered deposits |
1,290,796 |
1,484,435 |
961,481 |
815,951 |
902,002 |
||||
Time deposits |
1,498,287 |
1,398,012 |
1,344,341 |
1,359,138 |
1,370,190 |
||||
Total deposits |
11,359,440 |
10,734,530 |
10,422,712 |
10,392,854 |
10,108,663 |
||||
Short-term borrowings |
5,000 |
335,000 |
355,000 |
156,000 |
59,154 |
||||
Long-term debt |
374,793 |
374,793 |
379,793 |
379,793 |
379,793 |
||||
Accrued interest payable |
5,287 |
5,855 |
5,425 |
5,567 |
5,841 |
||||
Capital markets derivative liabilities |
108,094 |
105,773 |
100,109 |
104,140 |
113,968 |
||||
Other liabilities |
62,500 |
52,071 |
47,971 |
81,764 |
66,266 |
||||
Total liabilities |
11,915,114 |
11,608,022 |
11,311,010 |
11,120,118 |
10,733,685 |
||||
Equity |
|||||||||
Preferred stock - Series B |
241,585 |
241,185 |
240,791 |
240,403 |
240,020 |
||||
Common stock |
71,884 |
71,843 |
71,611 |
71,483 |
71,220 |
||||
Treasury stock |
(22,736) |
(22,639) |
(21,749) |
(21,454) |
(20,680) |
||||
Additional paid-in capital |
983,739 |
978,510 |
973,417 |
968,787 |
965,640 |
||||
Retained earnings/(accumulated deficit) |
33,150 |
14,268 |
932 |
(9,164) |
(16,075) |
||||
Accumulated other comprehensive income, net of tax |
55,818 |
50,987 |
47,152 |
46,697 |
46,051 |
||||
Total stockholders' equity |
1,363,440 |
1,334,154 |
1,312,154 |
1,296,752 |
1,286,176 |
||||
Noncontrolling interests |
- |
- |
- |
- |
- |
||||
Total equity |
1,363,440 |
1,334,154 |
1,312,154 |
1,296,752 |
1,286,176 |
||||
Total liabilities and equity |
$ 13,278,554 |
$ 12,942,176 |
$ 12,623,164 |
$ 12,416,870 |
$ 12,019,861 |
Selected Financial Data |
||||||||||||
Unaudited |
||||||||||||
(Amounts in thousands except per share data) |
||||||||||||
3Q12 |
2Q12 |
1Q12 |
4Q11 |
3Q11 |
||||||||
Selected Statement of Income Data: |
||||||||||||
Net interest income |
$ 105,408 |
$ 105,346 |
$ 104,376 |
$ 102,982 |
$ 101,089 |
|||||||
Net revenue (1) (2) |
$ 133,974 |
$ 132,291 |
$ 132,560 |
$ 129,046 |
$ 129,404 |
|||||||
Operating profit (1) (2) |
$ 52,244 |
$ 48,433 |
$ 52,331 |
$ 52,816 |
$ 54,370 |
|||||||
Provision for loan and covered loan losses |
$ 13,509 |
$ 17,038 |
$ 27,701 |
$ 31,611 |
$ 32,615 |
|||||||
Income before taxes |
$ 38,006 |
$ 30,696 |
$ 23,950 |
$ 20,534 |
$ 21,075 |
|||||||
Net income available to common stockholders |
$ 19,607 |
$ 14,062 |
$ 10,819 |
$ 7,629 |
$ 10,023 |
|||||||
Per Common Share Data: |
||||||||||||
Basic earnings per share |
$ 0.27 |
$ 0.19 |
$ 0.15 |
$ 0.11 |
$ 0.14 |
|||||||
Diluted earnings per share |
$ 0.27 |
$ 0.19 |
$ 0.15 |
$ 0.11 |
$ 0.14 |
|||||||
Dividends declared |
$ 0.01 |
$ 0.01 |
$ 0.01 |
$ 0.01 |
$ 0.01 |
|||||||
Book value (period end) (1) |
$ 15.49 |
$ 15.09 |
$ 14.79 |
$ 14.72 |
$ 14.57 |
|||||||
Tangible book value (period end) (1) (2) |
$ 14.00 |
$ 13.59 |
$ 13.29 |
$ 13.19 |
$ 13.04 |
|||||||
Market value (close) |
$ 15.99 |
$ 14.76 |
$ 15.17 |
$ 10.98 |
$ 7.52 |
|||||||
Book value multiple |
1.03 |
x |
0.98 |
x |
1.03 |
x |
0.75 |
x |
0.52 |
x |
||
Share Data: |
||||||||||||
Weighted-average common shares outstanding |
71,010 |
70,956 |
70,780 |
70,540 |
70,479 |
|||||||
Weighted-average diluted common shares outstanding |
71,274 |
71,147 |
70,932 |
70,713 |
70,621 |
|||||||
Common shares issued (at period end) |
73,291 |
73,273 |
73,205 |
72,514 |
72,491 |
|||||||
Common shares outstanding (at period end) |
72,436 |
72,424 |
72,415 |
71,745 |
71,789 |
|||||||
Performance Ratios: |
||||||||||||
Return on average assets |
0.70% |
0.55% |
0.46% |
0.36% |
0.44% |
|||||||
Return on average common equity |
7.00% |
5.18% |
4.05% |
2.86% |
3.80% |
|||||||
Net interest margin (1) (2) |
3.35% |
3.46% |
3.53% |
3.48% |
3.49% |
|||||||
Fee revenue as a percent of total revenue (1) |
21.02% |
20.12% |
20.79% |
19.55% |
18.71% |
|||||||
Non-interest income to average assets |
0.85% |
0.83% |
0.89% |
0.82% |
0.91% |
|||||||
Non-interest expense to average assets |
2.49% |
2.64% |
2.59% |
2.45% |
2.46% |
|||||||
Net overhead ratio (1) |
1.64% |
1.81% |
1.70% |
1.64% |
1.56% |
|||||||
Efficiency ratio(1) (2) |
61.00% |
63.39% |
60.52% |
59.07% |
57.98% |
|||||||
Selected Information: |
||||||||||||
Assets under management and administration (AUMA) (1) |
$ 5,007,235 |
$ 4,738,973 |
$ 4,879,947 |
$ 4,303,547 |
$ 4,161,614 |
|||||||
Custody assets included in AUMA |
$ 2,192,530 |
$ 2,073,777 |
$ 2,060,455 |
$ 1,599,528 |
$ 1,525,001 |
|||||||
Credit valuation adjustment on capital markets |
||||||||||||
derivatives(1) |
$ 5 |
$ (830) |
$ 19 |
$ 244 |
$ (1,207) |
|||||||
Balance Sheet Ratios: |
||||||||||||
Loans to deposits (period end)(3) |
84.73% |
87.91% |
88.48% |
86.68% |
85.82% |
|||||||
Average interest-earning assets to average interest- |
||||||||||||
bearing liabilities |
147.76% |
146.44% |
149.68% |
150.70% |
145.30% |
|||||||
Capital Ratios (period end): |
||||||||||||
Total risk-based capital (1)(2) |
13.90% |
14.12% |
14.20% |
14.28% |
14.82% |
|||||||
Tier 1 risk-based capital (1)(2) |
12.24% |
12.25% |
12.31% |
12.38% |
12.89% |
|||||||
Leverage(1)(2) |
11.15% |
11.20% |
11.35% |
11.33% |
11.48% |
|||||||
Tier 1 common capital (1) (2) |
8.12% |
8.05% |
8.04% |
8.04% |
8.34% |
|||||||
Tangible common equity to tangible assets (1) (2) |
7.70% |
7.67% |
7.69% |
7.69% |
7.86% |
|||||||
Total equity to total assets |
10.27% |
10.31% |
10.39% |
10.44% |
10.70% |
|||||||
(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. |
SOURCE PrivateBancorp, Inc.
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