PRIVATEBANCORP INC 
By CHICAGO, Jan. 22, 2013 /PRNewswire/ -- PrivateBancorp, Inc. (NASDAQ: PVTB) today reported net income available to common shareholders of $20.0 million, or $0.26 per diluted share, for the fourth quarter 2012, compared to $7.6 million, or $0.11 per diluted share, for the fourth quarter 2011. For the 12 months ended December 31, 2012, the Company had net income available to common shareholders of $64.5 million, or $0.88 per diluted share, compared to $30.7 million, or $0.43 per diluted share, for the prior year.
"Our 2012 performance demonstrates our commitment to improved earnings and a stronger balance sheet as we more than doubled net income, grew our business and strengthened asset quality," said Larry D. Richman, President and Chief Executive Officer, PrivateBancorp, Inc.
"We continued our earnings momentum in the fourth quarter and leveraged our client relationship development capabilities to generate solid loan and deposit growth, including significant year-end activity, and increased fee income," Richman continued. "Non-performing assets declined again this quarter as disposition activity continued. Despite continued pressure on net interest margin from the competitive environment, we succeeded in growing both net revenue and net income.
"As we move into 2013, our clients are telling us they are generally feeling better about their business performance even though their economic outlook is impacted by the continued uncertainty over fiscal policy," Richman concluded. "We will remain focused on developing profitable new relationships, to do more for our existing clients and to manage expenses in order to continue to drive improved profitability and shareholder return."
Fourth Quarter Results
-- Net income was $20.0 million, or $0.26 per share, for the fourth quarter
and included a charge of $2.2 million, or $0.03 per share, associated
with the redemption of the TARP preferred shares.
-- Net interest income of $104.8 million for the fourth quarter was
relatively unchanged from the third quarter 2012 as higher loan balances
offset the impact of lower loan and investment yields.
-- Total loans grew 5 percent in the fourth quarter to $10.1 billion,
primarily from commercial and industrial loans.
-- Total deposits increased 7 percent during the fourth quarter to $12.2
billion at December 31, 2012, including a 12 percent increase in
noninterest bearing deposits.
-- Asset quality continued to improve in the fourth quarter with a 21
percent reduction in non-performing assets from September 30, 2012.
Non-performing assets to total assets were 1.57 percent at December 31,
2012, compared to 2.09 percent at September 30, 2012.
Operating Performance
Net revenue was $135.0 million in the fourth quarter 2012, compared to $129.0 million in the fourth quarter 2011 and $134.0 million in the third quarter 2012. Operating profit was $53.7 million in the fourth quarter 2012, compared to $52.8 million in the fourth quarter 2011 and $52.2 million in the third quarter 2012. Increased revenue from fee income and loan growth contributed to a 3 percent increase in operating profit compared to the previous quarter. For the full year 2012, net revenue increased 5 percent to $533.8 million compared to 2011. For the full year, operating profit was $206.7 million, compared to $206.0 million in 2011. The full year results include net securities losses of $205,000 for 2012 and net securities gains of $5.8 million for 2011.
Net interest income was $104.8 million in the fourth quarter 2012, compared to $103.0 million for the fourth quarter 2011 and $105.4 million in the third quarter 2012. For the full year 2012, net interest income increased 3 percent to $419.9 million, from $407.1 million for full year 2011. Growth in average loans offset the impact of lower loan and investment yields during the fourth quarter; however, net interest income was impacted by $1.8 million of interest expense associated with $125 million of subordinated debt issued in mid-October to refinance a portion of the TARP preferred stock redemption.
Net interest margin was 3.16 percent for the fourth quarter 2012, compared to 3.48 percent in the fourth quarter 2011 and 3.35 percent for the third quarter 2012. Net interest margin this quarter was impacted by a number of items including a reduction of 9 basis points attributable to the Company's decision to have higher cash balances on deposit at the Federal Reserve, 7 basis points attributable to the subordinated debt issued as part of the redemption of TARP, and the remaining 3 basis points attributable to declining asset yields offset by improved deposit costs and mix.
Non-interest income was $29.5 million in the fourth quarter 2012, compared to $25.4 million in the fourth quarter 2011 and $27.8 million in the third quarter 2012. Growth in mortgage banking, and treasury management fees contributed to the increase in non-interest income in the fourth quarter. Mortgage banking benefited from growth in the mortgage banking team during the year and continued demand for refinancing during the quarter. The fourth quarter 2012 capital markets revenue included a positive credit valuation adjustment of $854,000 compared to $244,000 in the fourth quarter 2011, and $5,000 in the third quarter 2012. For the full year 2012, non-interest income, excluding net securities gains, increased 20 percent to $111.2 million compared to $92.5 million in the prior year.
Expenses
Non-interest expense was $81.3 million in the fourth quarter 2012, compared to $76.2 million in the fourth quarter 2011 and $81.7 million in the third quarter 2012. Non-interest expense for the full year 2012 was $327.1 million, compared to $302.3 million for the full year 2011. Net foreclosed property expense was higher in the fourth quarter 2012 and reflects greater losses on a higher volume of OREO sales and increased property ownership costs, while valuation impairments remained elevated. The efficiency ratio for the fourth quarter 2012 was 60.2 percent, compared to 59.1 percent for the fourth quarter 2011, and 61.0 percent for the third quarter 2012.
The effective tax rate for the fourth quarter was 42 percent and was largely impacted by reduced tax benefits relating to previously awarded stock-based compensation. Based on current statutory tax rates, the Company estimates an effective tax rate for 2013 in the range of 38 to 39 percent.
Credit Quality
The 2012 results reflect continued progress in improving overall asset quality. Non-performing assets declined 43 percent from December 31, 2011 and 21 percent from the third quarter 2012. Non-performing assets to total assets were 1.57 percent at December 31, 2012, compared to 3.11 percent at December 31, 2011, and 2.09 percent at September 30, 2012. Non-performing assets declined meaningfully again this quarter driven by a 26 percent reduction to inflows and ongoing disposition activity. Disposition of problem loans and OREO together remain in line with prior quarter activity levels. Special mention and potential problem loans were $204.7 million at the end of the fourth quarter, down 46 percent from a year ago and 6 percent from the third quarter 2012. The Company continues to focus on improving asset quality, and expects lower nonperforming assets as it moves through the next several quarters.
The allowance for loan losses at December 31, 2012 was 1.59 percent of total loans, down from 2.13 percent at December 31, 2011 and 1.73 percent at September 30, 2012. The allowance for loan losses as a percentage of non-performing loans was 116 percent at December 31, 2012, compared to 74 percent at December 31, 2011, and 93 percent at September 30, 2012. While the general allocated reserve remained relatively flat from last quarter as a function of higher loan growth and improved portfolio mix and overall asset quality, the amount of specific reserves declined as a result of the decreasing impaired loan population. Charge-offs were down 49 percent compared to the fourth quarter 2011, and down 8 percent compared to the previous 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 $14.1 billion at December 31, 2012, compared to $12.4 billion at December 31, 2011, and $13.3 billion at September 30, 2012. Total loans were $10.1 billion at December 31, 2012, an increase of 13 percent from December 31, 2011, and an increase of 5 percent from September 30, 2012. The loan growth was primarily in commercial and industrial loans, which is 64 percent of our total loan portfolio. A portion of the loan growth, which was elevated relative to prior quarters in 2012, included client borrowings in response to potential changes in the future tax rates, of which a portion may be repaid or syndicated in the first half of 2013.
Total deposits were $12.2 billion at December 31, 2012, compared to $10.4 billion at December 31, 2011, and $11.4 billion at September 30, 2012. This quarter the Company saw increased deposit inflows that resulted in a higher level of cash on deposit at the Federal Reserve. The Company built higher levels of liquid assets in the second half of the year in part due to uncertainty relating to the potential impact on deposit activity from the expiration at year-end of the unlimited FDIC deposit insurance on non-interest bearing transaction accounts. Consistent with the activity seen last year, the Company expects some deposit outflows to occur in the first quarter 2013. The Company will pursue appropriate opportunities to manage balance sheet movements and reduce excess funds.
The Company's investment securities portfolio was $2.3 billion at December 31, 2012, flat compared to December 31, 2011, and September 30, 2012. The securities portfolio is primarily composed of U.S. government agency backed mortgage securities, agency backed collateralized mortgage obligations, and investment grade municipal bonds.
Capital
On October 24, 2012, the Company used the net proceeds from subordinated debt and common stock offerings in October 2012, plus additional cash on its balance sheet to redeem the $243.8 million of preferred stock issued under TARP. In connection with the transaction in the fourth quarter, the Company accelerated accretion of the remaining $2.2 million discount on the preferred stock and paid $813,000 of preferred dividends upon redemption. Going forward, the TARP repayment eliminates approximately $3.4 million of quarterly preferred dividends and discount accretion. Subordinated debt issued in October 2012 will add approximately $2.2 million, or $1.4 million after tax, of incremental, quarterly interest expense.
As of December 31, 2012, the total risk-based capital ratio was 13.13 percent, the Tier 1 risk-based capital ratio was 10.48 percent, and the leverage ratio was 9.50 percent. Tier 1 common capital ratio was 8.50 percent and tangible common equity ratio was 7.88 percent at the end of the fourth quarter 2012.
Quarterly Conference Call and Webcast Presentation
PrivateBancorp will host a conference call on Tuesday, January 22, 2013, 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 # 85400469. 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 February 5, 2013, by calling (855) 859-2056 (U.S. and Canada) or (404) 537-3406 (International) and entering passcode # 85400469.
About PrivateBancorp, Inc.
PrivateBancorp, Inc., through its subsidiaries, delivers customized business and personal financial services to middle-market companies, as well as business owners, executives, entrepreneurs and families in all of the markets and communities we serve. As of December 31, 2012, the Company had 35 offices in 10 states and $14.1 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 loans that could result in charge-offs greater than we have anticipated in our allowance for loan losses; slower than anticipated dispositions of other real estate owned which may result in increased losses and ongoing elevated foreclosed property expense; 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 changes in interest rates; competitive pricing trends; lack of sufficient or cost-effective sources of liquidity or funding as and when needed; loss of key personnel or an inability to recruit and retain appropriate talent; 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 other changes in regulatory requirements relating to 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; changes in monetary or fiscal policies of the U.S. Government; or failures or disruptions to our data processing or other information or operational systems, including the potential impact of disruptions or breaches at our third party service providers. Forward-looking statements are subject to risks, assumptions and uncertainties and could be significantly affected by many factors, including those set forth in the "Risk Factors" 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 Years Ended
December 31, December 31,
2012 2011 2012 2011
---- ---- ---- ----
unaudited unaudited unaudited audited
Interest Income
Loans, including fees $108,172 $102,897 $423,211 $413,109
Federal funds sold and
other short-term
investments 452 215 965 1,181
Securities:
Taxable 12,938 15,173 56,826 61,026
Exempt from Federal income
taxes 1,462 1,273 5,487 5,439
Other interest income 168 90 547 391
--- --- --- ---
Total interest income 123,192 119,648 487,036 481,146
Interest Expense
Interest-bearing demand
deposits 985 585 3,378 2,439
Savings deposits and money
market accounts 4,531 4,857 17,604 22,957
Brokered and time deposits 5,561 5,561 21,832 24,676
Short-term borrowings 77 152 443 2,011
Long-term debt 7,235 5,511 23,846 21,936
----- ----- ------ ------
Total interest expense 18,389 16,666 67,103 74,019
------ ------ ------ ------
Net interest income 104,803 102,982 419,933 407,127
Provision for loan and
covered loan losses 13,177 31,611 71,425 132,897
------ ------ ------ -------
Net interest income after
provision for 274,230
loan and covered loan
losses 91,626 71,371 348,508
Non-interest Income
Trust and Investments 4,232 3,992 17,017 17,826
Mortgage banking 4,197 3,032 13,460 6,703
Capital markets products 6,744 5,471 25,958 19,341
Treasury management 5,606 4,813 21,510 18,181
Loan and credit-related
fees 6,902 5,606 27,280 22,207
Deposit service charges
and fees and other income 1,582 2,115 6,021 8,218
Net securities (losses)
gains 191 364 (205) 5,771
Total non-interest income 29,454 25,393 111,041 98,247
------ ------ ------- ------
Non-interest Expense
Salaries and employee
benefits 45,253 40,729 174,948 156,763
Net occupancy expense 7,762 7,394 30,571 29,986
Technology and related
costs 3,249 3,142 13,250 11,388
Marketing 2,448 2,250 10,311 8,911
Professional services 1,998 2,126 8,353 9,206
Outsourced servicing costs 1,814 2,077 7,419 8,001
Net foreclosed property
expenses 9,571 6,862 38,296 27,782
Postage, telephone, and
delivery 909 953 3,497 3,716
Insurance 3,290 3,462 15,186 21,287
Loan and collection
expense 2,227 3,840 11,631 13,571
Other expenses 2,794 3,395 13,670 11,666
----- ----- ------ ------
Total non-interest expense 81,315 76,230 327,132 302,277
------ ------ ------- -------
Income before income taxes 39,765 20,534 132,417 70,200
Income tax provision 16,682 9,468 54,521 25,660
------ ----- ------ ------
Net income 23,083 11,066 77,896 44,540
Net income attributable to
noncontrolling interests - 7 - 170
--- --- --- ---
Net income attributable to
controlling interests 23,083 11,059 77,896 44,370
Preferred stock dividends
and discount accretion 3,043 3,430 13,368 13,690
----- ----- ------ ------
Net income available to
common stockholders $20,040 $7,629 $64,528 $30,680
======= ====== ======= =======
Per Common Share Data
Basic earnings per share $0.26 $0.11 $0.88 $0.43
Diluted earnings per share $0.26 $0.11 $0.88 $0.43
Cash dividends declared $0.01 $0.01 $0.04 $0.04
Weighted-average common
shares outstanding 75,035 70,540 71,951 70,449
Weighted-average diluted
common shares outstanding 75,374 70,713 72,174 70,642
Note: 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)
4Q12 3Q12 2Q12 1Q12 4Q11
---- ---- ---- ---- ----
Interest Income
Loans, including fees $108,172 $106,358 $105,142 $103,539 $102,897
Federal funds sold and
other short-term
investments 452 248 133 132 215
Securities:
Taxable 12,938 13,907 14,723 15,258 15,173
Exempt from Federal income
taxes 1,462 1,389 1,336 1,300 1,273
Other interest income 168 126 131 122 90
--- --- --- --- ---
Total interest income 123,192 122,028 121,465 120,351 119,648
Interest Expense
Interest-bearing demand
deposits 985 958 799 636 585
Savings deposits and money
market accounts 4,531 4,206 4,265 4,602 4,857
Brokered and time deposits 5,561 5,860 5,394 5,017 5,561
Short-term borrowings 77 101 123 142 152
Long-term debt 7,235 5,495 5,538 5,578 5,511
----- ----- ----- ----- -----
Total interest expense 18,389 16,620 16,119 15,975 16,666
------ ------ ------ ------ ------
Net interest income 104,803 105,408 105,346 104,376 102,982
Provision for loan and
covered loan losses 13,177 13,509 17,038 27,701 31,611
------ ------ ------ ------ ------
Net interest income after
provision for
loan and covered loan
losses 91,626 91,899 88,308 76,675 71,371
------ ------ ------ ------ ------
Non-interest Income
Trust and Investments 4,232 4,254 4,312 4,219 3,992
Mortgage banking 4,197 3,685 2,915 2,663 3,032
Capital markets products 6,744 5,832 6,033 7,349 5,471
Treasury management 5,606 5,490 5,260 5,154 4,813
Loan and credit-related
fees 6,902 7,479 6,372 6,527 5,606
Deposit service charges
and fees and other income 1,582 1,308 1,644 1,487 2,115
Net securities (losses)
gains 191 (211) (290) 105 364
--- ---- --- ---
Total non-interest income 29,454 27,837 26,246 27,504 25,393
------ ------ ------ ------ ------
Non-interest Expense
Salaries and employee
benefits 45,253 44,820 42,177 42,698 40,729
Net occupancy expense 7,762 7,477 7,653 7,679 7,394
Technology and related
costs 3,249 3,432 3,273 3,296 3,142
Marketing 2,448 2,645 3,058 2,160 2,250
Professional services 1,998 2,151 2,247 1,957 2,126
Outsourced servicing costs 1,814 1,802 2,093 1,710 2,077
Net foreclosed property
expenses 9,571 8,596 11,894 8,235 6,862
Postage, telephone, and
delivery 909 837 882 869 953
Insurance 3,290 3,352 4,239 4,305 3,462
Loan and collection
expense 2,227 3,329 2,918 3,157 3,840
Other expenses 2,794 3,289 3,424 4,163 3,395
----- ----- ----- ----- -----
Total non-interest expense 81,315 81,730 83,858 80,229 76,230
------ ------ ------ ------ ------
Income before income taxes 39,765 38,006 30,696 23,950 20,534
Income tax provision 16,682 14,952 13,192 9,695 9,468
------ ------ ------ ----- -----
Net income 23,083 23,054 17,504 14,255 11,066
Net income attributable to
noncontrolling interests - - - - 7
--- --- --- --- ---
Net income attributable to
controlling interests 23,083 23,054 17,504 14,255 11,059
Preferred stock dividends
and discount accretion 3,043 3,447 3,442 3,436 3,430
----- ----- ----- ----- -----
Net income available to
common stockholders $20,040 $19,607 $14,062 $10,819 $7,629
======= ======= ======= ======= ======
Per Common Share Data
Basic earnings per share $0.26 $0.27 $0.19 $0.15 $0.11
Diluted earnings per share $0.26 $0.27 $0.19 $0.15 $0.11
Cash dividends declared $0.01 $0.01 $0.01 $0.01 $0.01
Weighted-average common
shares outstanding 75,035 71,010 70,956 70,780 70,540
Weighted-average diluted
common shares outstanding 75,374 71,274 71,147 70,932 70,713
Note: Certain reclassifications have
been made to prior period financial
statements to place them on a basis
comparable with the current period
financial statements.
Consolidated Balance Sheets
(Dollars in thousands)
12/31/12 09/30/12 06/30/12 03/31/12 12/31/11
-------- -------- -------- -------- --------
unaudited unaudited unaudited unaudited audited
Assets
Cash and due from banks $234,308 $143,573 $141,563 $166,062 $156,131
Fed funds sold and other
short-term investments 707,143 470,984 315,378 193,571 205,610
Loans held for sale 49,696 49,209 35,342 29,185 32,049
Securities available-
for-sale, at fair
value 1,451,160 1,550,516 1,625,649 1,705,649 1,783,465
Securities held-to-
maturity, at amortized
cost 863,727 784,930 693,277 598,066 490,143
FHLB stock 43,387 43,387 43,467 40,695 40,695
Loans -excluding
covered assets, net of
unearned fees 10,139,982 9,625,421 9,436,235 9,222,253 9,008,561
Allowance for loan
losses (161,417) (166,859) (174,302) (183,844) (191,594)
Loans, net of allowance
for loan losses and
unearned fees 9,978,565 9,458,562 9,261,933 9,038,409 8,816,967
--------- --------- --------- --------- ---------
Covered assets 194,216 208,979 244,782 276,534 306,807
Allowance for covered
loan losses (24,011) (21,500) (21,733) (26,323) (25,939)
Covered assets, net of
allowance for covered
loan losses 170,205 187,479 223,049 250,211 280,868
------- ------- ------- ------- -------
Other real estate owned,
excluding covered
assets 81,880 97,833 109,836 123,498 125,729
Premises, furniture, and
equipment, net 39,508 40,526 38,177 37,462 38,633
Accrued interest
receivable 34,832 36,892 37,089 36,033 35,732
Investment in bank owned
life insurance 52,513 52,134 51,751 51,356 50,966
Goodwill 94,521 94,534 94,546 94,559 94,571
Other intangible assets 12,828 13,500 14,152 14,683 15,353
Capital markets
derivative assets 90,405 104,697 102,613 97,805 101,676
Other assets 152,837 149,798 154,354 145,920 148,282
Total assets $14,057,515 $13,278,554 $12,942,176 $12,623,164 $12,416,870
=========== =========== =========== =========== ===========
Liabilities
Demand deposits:
Noninterest-bearing $3,690,340 $3,295,568 $2,920,182 $3,054,536 $3,244,307
Interest-bearing 1,057,390 893,194 785,879 714,522 595,238
Savings deposits and
money market accounts 4,912,820 4,381,595 4,146,022 4,347,832 4,378,220
Brokered time deposits 993,455 1,290,796 1,484,435 961,481 815,951
Time deposits 1,519,629 1,498,287 1,398,012 1,344,341 1,359,138
--------- --------- --------- --------- ---------
Total deposits 12,173,634 11,359,440 10,734,530 10,422,712 10,392,854
Short-term borrowings 5,000 5,000 335,000 355,000 156,000
Long-term debt 499,793 374,793 374,793 379,793 379,793
Accrued interest payable 7,141 5,287 5,855 5,425 5,567
Capital markets
derivative liabilities 93,029 108,094 105,773 100,109 104,140
Other liabilities 71,752 62,500 52,071 47,971 81,764
------ ------ ------ ------ ------
Total liabilities 12,850,349 11,915,114 11,608,022 11,311,010 11,120,118
---------- ---------- ---------- ---------- ----------
Equity
Preferred stock - 241,585 241,185 240,791 240,403
Common stock 77,015 71,884 71,843 71,611 71,483
Treasury stock (24,150) (22,736) (22,639) (21,749) (21,454)
Additional paid-in
capital 1,053,821 983,739 978,510 973,417 968,787
Retained earnings/
(accumulated deficit) 52,416 33,150 14,268 932 (9,164)
Accumulated other
comprehensive income,
net of tax 48,064 55,818 50,987 47,152 46,697
------ ------ ------ ------ ------
Total equity 1,207,166 1,363,440 1,334,154 1,312,154 1,296,752
--------- --------- --------- --------- ---------
Total liabilities and
equity $14,057,515 $13,278,554 $12,942,176 $12,623,164 $12,416,870
=========== =========== =========== =========== ===========
Note: 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)
4Q12 3Q12 2Q12 1Q12 4Q11
---- ---- ---- ---- ----
Selected Statement of Income
Data:
Net interest income $104,803 $105,408 $105,346 $104,376 $102,982
Net revenue (1) (2) $135,022 $133,974 $132,291 $132,560 $129,046
Operating profit (1) (2) $53,707 $52,244 $48,433 $52,331 $52,816
Provision for loan and covered loan
losses $13,177 $13,509 $17,038 $27,701 $31,611
Income before taxes $39,765 $38,006 $30,696 $23,950 $20,534
Net income available to common
stockholders $20,040 $19,607 $14,062 $10,819 $7,629
Per Common Share Data:
Basic earnings per share $0.26 $0.27 $0.19 $0.15 $0.11
Diluted earnings per share $0.26 $0.27 $0.19 $0.15 $0.11
Dividends declared $0.01 $0.01 $0.01 $0.01 $0.01
Book value (period end) (1) $15.65 $15.49 $15.09 $14.79 $14.72
Tangible book value (period end) (1)
(2) $14.26 $14.00 $13.59 $13.29 $13.19
Market value (close) $15.32 $15.99 $14.76 $15.17 $10.98
Book value multiple 0.98 x 1.03 x 0.98 x 1.03 x 0.75 x
Share Data:
Weighted-average common shares
outstanding 75,035 71,010 70,956 70,780 70,540
Weighted-average diluted common
shares outstanding 75,374 71,274 71,147 70,932 70,713
Common shares issued (at period end) 78,062 73,291 73,273 73,205 72,514
Common shares outstanding (at period
end) 77,115 72,436 72,424 72,415 71,745
Performance Ratios:
Return on average assets 0.67% 0.70% 0.55% 0.46% 0.36%
Return on average common equity 6.64% 7.00% 5.18% 4.05% 2.86%
Net interest margin (1) (2) 3.16% 3.35% 3.46% 3.53% 3.48%
Fee revenue as a percent of total
revenue (1) 21.83% 21.02% 20.12% 20.79% 19.55%
Non-interest income to average
assets 0.85% 0.85% 0.83% 0.89% 0.82%
Non-interest expense to average
assets 2.35% 2.49% 2.64% 2.59% 2.45%
Net overhead ratio (1) 1.50% 1.64% 1.81% 1.70% 1.64%
Efficiency ratio(1) (2) 60.22% 61.00% 63.39% 60.52% 59.07%
Selected Information:
Assets under management and
administration (AUMA) (1) $5,196,094 $5,007,235 $4,738,973 $4,879,947 $4,303,547
Custody assets included in AUMA $2,345,410 $2,192,530 $2,073,777 $2,060,455 $1,599,528
Credit valuation adjustment on
capital markets derivatives (1)
$854 $5 $(830) $19 $244
Balance Sheet Ratios:
Loans to deposits (period end)(3) 83.29% 84.73% 87.91% 88.48% 86.68%
Average interest-earning assets to
average interest-bearing
liabilities
150.03% 147.76% 146.44% 149.68% 150.70%
Capital Ratios (period end):
Total risk-based capital (1) 13.13% 13.90% 14.12% 14.20% 14.28%
Tier 1 risk-based capital (1) 10.48% 12.24% 12.25% 12.31% 12.38%
Tier 1 leverage ratio (1) 9.50% 11.15% 11.20% 11.35% 11.33%
Tier 1 common equity to risk-
weighted assets (1) (2) 8.50% 8.12% 8.05% 8.04% 8.04%
Tangible common equity to tangible
assets (1) (2) 7.88% 7.70% 7.67% 7.69% 7.69%
Total equity to total assets 8.59% 10.27% 10.31% 10.39% 10.44%
(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.
