CHICAGO, Jan. 24, 2012
/PRNewswire/ -- PrivateBancorp, Inc. (NASDAQ: PVTB) today reported
net income available to common shareholders of $7.6 million, or $0.11 per diluted share, for the fourth quarter
2011, compared to $8.5 million, or
$0.12 per diluted share, for the
fourth quarter 2010. For the 12 months ended December 31, 2011, the Company had net income
available to common shareholders of $30.7
million, or $0.43 per diluted
share, compared to a net loss of $12.1
million, or $0.17 loss per
diluted share, for the prior year.
"We remain focused on executing our relationship-based
commercial middle market strategy and our results in 2011 reflect
the improvement in overall asset quality as well as the success
we've had in growing our business," said Larry D. Richman, President and Chief Executive
Officer, PrivateBancorp, Inc. "Over the year, we added
important new client relationships, continued to grow our
commercial and industrial loans, and increased non-interest income.
In 2011, our loan mix improved, the credit characteristics of
the portfolio were stronger and non-performing assets declined,
which combined to help drive the turnaround and led to $30.7 million in net income for the year. I
believe we are positioned to benefit as the economic environment
improves.
"We ended the year with a solid fourth quarter, including more
than $330 million in net loan growth
from new commercial relationships and increased demand from
existing clients. Given our healthy pipeline and the
opportunities we have to grow client relationships, I am confident
that, as we move into 2012, we will continue to leverage the
strengths of our team to serve our clients and our communities and
continue to build long-term shareholder value."
Fourth Quarter and Full Year Results
- Full year 2011 net income available to common shareholders grew
to $30.7 million compared to a net
loss of $12.1 million for the full
year 2010. Net interest margin was 3.48 percent for
the fourth quarter 2011, compared to 3.49 percent in the prior
quarter.
- Total loans grew $333.6 million
this quarter with the majority of the growth in commercial and
industrial loans. Over the course of the year, the Company
increased commercial and industrial loans to 60 percent of the
total loan portfolio at year-end 2011 compared to 54 percent a year
ago.
- Total deposits increased to $10.4
billion at December 31, 2011,
with growth in non-interest bearing deposits of 15 percent from the
end of the third quarter 2011. While total deposits were
relatively flat compared to prior year, non-interest bearing
deposits comprised 31 percent of total deposits at December 31, 2011, compared to 21 percent at
December 31, 2010.
- Special mention and potential problem loans continued to
decline. At year-end 2011, special mention and potential
problem loans were $382.1 million, a
decrease of $113.6 million, or 23
percent, from September 30, 2011, and
a decrease of $524.4 million, or 58
percent, from the prior year.
- Non-performing assets declined 8 percent from September 30, 2011, and 15 percent from
December 31, 2010, reflecting
disposition activity and ongoing workout efforts. Disposition
activity for the quarter included $68.1
million in problem loans and $20.3
million in other real estate owned (OREO). Total
problem asset dispositions were $387.8
million for the full year 2011.
Operating Performance
Net revenue was $129.0 million in
the fourth quarter 2011, compared to $136.1
million in the fourth quarter 2010 and $129.4 million in the third quarter 2011.
The fourth quarter 2011 results include net securities gains
of $364,000, compared to $9.3 million net securities gains in the fourth
quarter 2010 and $4.4 million net
securities gains in the third quarter 2011. Excluding net
securities gains, net revenue increased 2 percent from the fourth
quarter 2010 and 3 percent from the third quarter 2011.
For the full year 2011, net revenue increased to $508.2 million compared to $497.8 million in 2010. Excluding net
securities gains of $5.8 million and
$12.2 million for years ended 2011
and 2010, respectively, net revenue increased 3 percent.
Overall net revenue performance on a year-over-year basis was
driven by net interest margin expansion and ongoing cross-sell to
new and existing clients.
Net interest margin was 3.48 percent for the fourth quarter
2011, compared to 3.33 percent in the fourth quarter 2010 and 3.49
percent for the third quarter 2011. During the fourth quarter
2011, net interest margin benefited from a number of factors
including the continued execution of the Company's strategy to
improve the loan mix including the replacement of low-yielding
commercial real estate loans and non-performing loan balances with
better priced commercial and industrial and commercial real estate
loans. Net interest margin also benefited from the increase
in short-term LIBOR during the quarter. Increased volume of
non-interest bearing demand accounts and downward deposit repricing
during the quarter favorably impacted the cost of funds, benefiting
net interest margin by 5 basis points as compared to the third
quarter 2011. Net interest income increased to $103.0 million in the fourth quarter 2011,
compared to $100.3 million for the
fourth quarter 2010 and $101.1
million in the third quarter 2011. For the full year
2011, net interest income increased 2 percent to $407.1 million, from $401.0 million for full year 2010.
Operating profit was $52.8 million
in the fourth quarter 2011, compared to $53.9 million in the fourth quarter 2010 and
$54.4 million in the third quarter
2011. Excluding net securities gains, operating profit
increased 18 percent from the fourth quarter 2010 and 5 percent
from the third quarter 2011. For the full year, operating
profit increased to $206.0 million,
compared to $198.2 million in 2010.
Operating profit, excluding net securities gains, grew 8
percent from the prior year.
Non-interest income was $25.4
million in the fourth quarter 2011, compared to $34.9 million in the fourth quarter 2010 and
$27.6 million in the third quarter
2011. Non-interest income decreased 2 percent compared to the
fourth quarter 2010 and increased 8 percent compared to the third
quarter 2011, excluding net securities gains. For the full
year 2011, non-interest income increased to $98.2 million, up from $93.2 million for the year ended December 31, 2010. Excluding net securities
gains, non-interest income grew 14 percent from the prior year.
Treasury management income increased 14 percent from the fourth
quarter 2010 and 5 percent from the third quarter 2011. Trust
and investment income for the fourth quarter was $4.0 million, compared to $4.6 million in the fourth quarter 2010 and
$4.5 million in the third quarter
2011. Capital markets revenue was $5.5
million for the fourth quarter 2011, compared to
$6.8 million for the fourth quarter
2010 and $5.5 million for the third
quarter 2011. Excluding the impact of the credit valuation
adjustment, capital markets revenue was $5.2
million in the fourth quarter 2011, compared to $5.0 million in the fourth quarter 2010 and
$6.7 million in the third quarter
2011. Capital markets revenue declined compared to the third
quarter 2011 due to some large transactions that occurred in the
third quarter. Loan and credit related fees grew 19 percent
from the fourth quarter 2010 and 4 percent from last quarter due to
increased syndications revenue.
Mortgage banking income was $3.0
million in the fourth quarter 2011, compared to $3.5 million in the fourth quarter 2010 and
$1.6 million in the third quarter
2011. The fourth quarter 2011 benefited from a full quarter
of refinance activity based on the low interest rate
environment.
Expenses
Non-interest expense was $76.2
million in the fourth quarter 2011, compared to $82.1 million in the fourth quarter 2010 and
$75.0 million in the third quarter
2011. Non-interest expense for the full year 2011 was
$302.3 million, relatively flat
compared to $299.6 million for the
full year 2010 due to continued expense management throughout the
year.
Salary and benefit expense was higher in the fourth quarter
2011, compared to the fourth quarter 2010 and the third quarter
2011, due to an increase in commission-based compensation and a
higher annual incentive compensation accrual. Insurance
expense declined compared to the fourth quarter 2010 and the third
quarter 2011 due to the implementation of a change in the FDIC
calculation methodology. Overall credit costs remain
elevated.
The efficiency ratio was 59.1 percent in the fourth quarter
2011, compared to 60.4 percent in the fourth quarter 2010 and 58.0
percent in the third quarter 2011.
The effective tax rate for the fourth quarter was 46.1 percent
and was impacted by the non-deductibility of certain compensation
expense as well as reduced tax benefits relating to the impact of
current share price valuation on stock-based compensation.
Based on the Company's current projection, the effective tax rate
for 2012 should decline from the fourth quarter rate, although the
rate will continue to be dependent on a number of factors,
including future share prices.
Credit Quality
The 2011 results reflect strong progress in improving the
overall asset quality of the portfolio and reducing problem
assets. Non-performing assets declined to $385.6 million at December
31, 2011, down from $454.6
million at December 31, 2010,
and $421.1 million at September 30, 2011. Non-performing assets
to total assets were 3.11 percent at December 31, 2011, compared to 3.65 percent at
December 31, 2010, and 3.50 percent
at September 30, 2011.
Non-performing loans were $259.9
million at year-end 2011, down from $365.9 million a year ago and $304.7 million at the end of last quarter.
Non-performing loan inflows were $67.5
million in the fourth quarter 2011.
Special mention and potential problem loans declined further in
the fourth quarter 2011, down 23 percent from third quarter
2011. Over the past year, special mention and potential
problem loans have declined $524.4
million, or 58 percent, to $382.1
million at December 31,
2011. The Company disposed of $387.8
million problem assets this year, with an aggregate
incremental charge of 15 percent based on the carrying value net of
specific reserves at the time of disposition. The Company
expects continued strengthening of the credit quality of the
portfolio as problem loan resolutions continue.
The fourth quarter 2011 provision for loan losses was
$29.8 million, excluding covered loan
provision, down from $34.5 million in
the fourth quarter 2010 and $32.3
million in the third quarter 2011. For the full year
2011, the provision for loan losses was $130.6 million, excluding covered loan provision,
down from $192.0 million in the prior
year. The allowance for loan losses at December 31, 2011 was $191.6 million, or 2.13% of total loans, compared
to $222.8 million, or 2.44% of total
loans, at December 31, 2010 and
$200.0 million, or 2.31% of total
loans at September 30, 2011.
The allowance for loan losses as a percentage of
non-performing loans was 74 percent at December 31, 2011, compared to 61 percent at
December 31, 2010, and 66 percent at
September 30, 2011.
Net charge-offs were $38.2 million
for the quarter ended December 31,
2011, compared to $35.1
million for the fourth quarter 2010 and $38.6 million for the third quarter 2011.
For the year ended December 31,
2011, net charge-offs were $161.8
million, down from $190.9
million in the prior year.
Restructured loans accruing interest were $100.9 million at December
31, 2011, compared to $87.6
million at December 31, 2010
and $106.3 million at September 30, 2011. The Company utilizes
loan restructuring in an effort to maximize economic recovery.
Credit quality results exclude $306.8
million in covered assets as of the end of the fourth
quarter 2011, referring to certain assets acquired through an
FDIC-assisted transaction that are subject to a loss-sharing
agreement, compared to $397.2 million
in the fourth quarter 2010 and $319.0
million in the third quarter 2011.
Balance Sheet
Commercial and industrial loans were $5.4
billion, an increase of 11 percent compared to prior year
and an increase of 6 percent from September
30, 2011. Total loans were $9.0
billion at year-end 2011, compared to $9.1 billion at year-end 2010 and $8.7 billion at September
30, 2011.
Total assets were $12.4 billion at
December 31, 2011, compared to
$12.5 billion at December 31, 2010, and $12.0 billion at September
30, 2011. Total deposits were $10.4 billion at December
31, 2011, compared to $10.5
billion at December 31, 2010,
and $10.1 billion at September 30, 2011. Non-interest bearing
deposits grew to $3.2 billion, an
increase of 44 percent compared to $2.3
billion a year ago. The increase in non-interest
bearing deposit balances can be attributed to several factors
including growth from existing and new commercial client
relationships, client focused treasury management product
offerings, and deposit movements reflecting our clients' desire to
hold greater liquidity in this economic environment.
The Company's investment securities portfolio was $2.3 billion at December
31, 2011, compared to $1.9
billion at December 31, 2010,
and $2.2 billion at September 30, 2011. Net unrealized gains
were $73.6 million, compared to
$32.0 million at the end of the
fourth quarter 2010 and $74.2 million
at the end of the third quarter 2011. The change in net
unrealized gains compared to the prior year was primarily due to
the decrease in interest rates. The securities portfolio is
primarily composed of U.S. government agency backed mortgage pools,
agency collateralized mortgage obligations, and investment grade
municipal bonds.
Capital
As of December 31, 2011, the total
risk-based capital ratio was 14.28 percent, the Tier 1 risk-based
capital ratio was 12.38 percent, and the leverage ratio was 11.33
percent. Tier 1 common capital ratio was 8.04 percent and tangible
common equity ratio was 7.69 percent at the end of the fourth
quarter 2011.
Quarterly Conference Call and Webcast Presentation
PrivateBancorp will host a conference call on Tuesday, January 24, 2012, 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 # 38453385. 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 January 26, 2012, by calling (855) 859-2056 (U.S.
and Canada) or (404) 537-3406
(International) and entering passcode # 38453385.
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, 2011,
the Company had 34 offices in 10 states and $12.4 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 OREO
which may result in increased losses or higher credit 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; weakness in the
commercial and industrial sector; unanticipated withdrawals of
significant client deposits; lack of sufficient or cost-effective
sources of liquidity or funding; the terms and availability of
capital when and to the extent necessary or required to repay TARP
or otherwise; loss of key personnel or an inability to recruit and
retain appropriate talent; 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 the legislation, including evolving regulatory
capital standards; other legislative, regulatory or accounting
changes affecting financial services companies and/or the products
and services offered by financial services companies; uncertainties
related to potential costs associated with pending litigation; or
failures or disruptions to our data processing or other information
or operational systems. 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 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. 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,
|
|
|
|
2011
|
|
2010
|
|
2011
|
|
2010
|
|
|
|
unaudited
|
|
unaudited
|
|
unaudited
|
|
audited
|
|
|
Interest Income
|
|
|
|
|
|
|
|
|
|
Loans,
including fees
|
$
102,897
|
|
$
105,375
|
|
$
413,109
|
|
$
434,884
|
|
|
Federal
funds sold and other short-term investments
|
215
|
|
366
|
|
1,181
|
|
1,950
|
|
|
Securities:
|
|
|
|
|
|
|
|
|
|
Taxable
|
15,263
|
|
15,453
|
|
61,417
|
|
64,316
|
|
|
Exempt from Federal income
taxes
|
1,273
|
|
1,644
|
|
5,439
|
|
6,775
|
|
|
Total interest
income
|
119,648
|
|
122,838
|
|
481,146
|
|
507,925
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest Expense
|
|
|
|
|
|
|
|
|
|
Interest-bearing demand deposits
|
585
|
|
702
|
|
2,439
|
|
3,148
|
|
|
Savings
deposits and money market accounts
|
4,857
|
|
7,437
|
|
22,957
|
|
34,431
|
|
|
Brokered
and time deposits
|
5,561
|
|
7,367
|
|
24,676
|
|
36,458
|
|
|
Short-term
borrowings
|
152
|
|
962
|
|
2,011
|
|
5,088
|
|
|
Long-term
debt
|
5,511
|
|
6,023
|
|
21,936
|
|
27,843
|
|
|
Total interest expense
|
16,666
|
|
22,491
|
|
74,019
|
|
106,968
|
|
|
Net interest
income
|
102,982
|
|
100,347
|
|
407,127
|
|
400,957
|
|
|
Provision for loan and covered loan
losses
|
31,611
|
|
35,166
|
|
132,897
|
|
194,541
|
|
|
Net
interest income after provision for
|
|
|
|
|
|
|
|
|
|
loan and covered loan
losses
|
71,371
|
|
65,181
|
|
274,230
|
|
206,416
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-interest Income
|
|
|
|
|
|
|
|
|
|
Trust and
Investments
|
3,992
|
|
4,574
|
|
17,826
|
|
18,140
|
|
|
Mortgage
banking
|
3,032
|
|
3,479
|
|
6,703
|
|
10,187
|
|
|
Capital
markets products
|
5,471
|
|
6,791
|
|
19,341
|
|
14,286
|
|
|
Treasury
management
|
5,283
|
|
4,625
|
|
19,923
|
|
16,920
|
|
|
Loan and
credit-related fees
|
5,606
|
|
4,710
|
|
22,207
|
|
16,526
|
|
|
Other
income, service charges, and fees
|
1,645
|
|
1,377
|
|
6,476
|
|
5,005
|
|
|
Net
securities gains
|
364
|
|
9,309
|
|
5,771
|
|
12,182
|
|
|
Total non-interest
income
|
25,393
|
|
34,865
|
|
98,247
|
|
93,246
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-interest Expense
|
|
|
|
|
|
|
|
|
|
Salaries
and employee benefits
|
40,729
|
|
38,577
|
|
156,763
|
|
149,863
|
|
|
Net
occupancy expense
|
7,394
|
|
7,385
|
|
29,986
|
|
29,935
|
|
|
Technology
and related costs
|
3,142
|
|
2,447
|
|
11,388
|
|
10,224
|
|
|
Marketing
|
2,250
|
|
1,997
|
|
8,911
|
|
8,501
|
|
|
Professional services
|
2,126
|
|
3,020
|
|
9,206
|
|
12,931
|
|
|
Outsourced
servicing costs
|
2,077
|
|
1,950
|
|
8,001
|
|
7,807
|
|
|
Net
foreclosed property expenses
|
6,862
|
|
7,028
|
|
27,782
|
|
15,192
|
|
|
Postage,
telephone, and delivery
|
953
|
|
1,049
|
|
3,716
|
|
3,659
|
|
|
Insurance
|
3,462
|
|
8,348
|
|
21,287
|
|
26,534
|
|
|
Loan and
collection expense
|
3,840
|
|
4,029
|
|
13,571
|
|
14,623
|
|
|
Other
expenses
|
3,395
|
|
6,318
|
|
11,666
|
|
20,329
|
|
|
Total non-interest
expense
|
76,230
|
|
82,148
|
|
302,277
|
|
299,598
|
|
|
Income
before income taxes
|
20,534
|
|
17,898
|
|
70,200
|
|
64
|
|
|
Income tax
provision (benefit)
|
9,468
|
|
5,919
|
|
25,660
|
|
(1,737)
|
|
|
Net income
|
11,066
|
|
11,979
|
|
44,540
|
|
1,801
|
|
|
Net income
attributable to noncontrolling interests
|
7
|
|
67
|
|
170
|
|
284
|
|
|
Net income attributable
to controlling interests
|
11,059
|
|
11,912
|
|
44,370
|
|
1,517
|
|
|
Preferred
stock dividends and discount accretion
|
3,430
|
|
3,409
|
|
13,690
|
|
13,607
|
|
|
Net income (loss)
available to common stockholders
|
$
7,629
|
|
$
8,503
|
|
$
30,680
|
|
$
(12,090)
|
|
|
|
|
|
|
|
|
|
|
|
|
Per
Common Share Data
|
|
|
|
|
|
|
|
|
|
Basic
|
$
0.11
|
|
$
0.12
|
|
$
0.43
|
|
$
(0.17)
|
|
|
Diluted
|
$
0.11
|
|
$
0.12
|
|
$
0.43
|
|
$
(0.17)
|
|
|
Common
dividends per share
|
$
0.01
|
|
$
0.01
|
|
$
0.04
|
|
$
0.04
|
|
|
Weighted-average common shares outstanding
|
70,540
|
|
70,098
|
|
70,449
|
|
70,024
|
|
|
Weighted-average diluted common shares
outstanding
|
70,713
|
|
70,135
|
|
70,642
|
|
70,024
|
|
|
|
|
|
|
|
|
|
|
|
|
Note 1:
Due to the net loss available to common stockholders
reported for the year ended December 31, 2010, all potentially
dilutive common stock equivalents were excluded from the diluted
net loss per share computation as their inclusion would have been
antidilutive.
|
|
Note
2: 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)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
4Q11
|
|
3Q11
|
|
2Q11
|
|
1Q11
|
|
4Q10
|
|
|
Interest Income
|
|
|
|
|
|
|
|
|
|
|
|
Loans,
including fees
|
$
102,897
|
|
$
102,174
|
|
$
102,391
|
|
$
105,647
|
|
$
105,375
|
|
|
Federal
funds sold and other short-term investments
|
215
|
|
231
|
|
399
|
|
336
|
|
366
|
|
|
Securities:
|
|
|
|
|
|
|
|
|
|
|
|
Taxable
|
15,263
|
|
15,196
|
|
15,568
|
|
15,390
|
|
15,453
|
|
|
Exempt from Federal income
taxes
|
1,273
|
|
1,293
|
|
1,387
|
|
1,486
|
|
1,644
|
|
|
Total interest
income
|
119,648
|
|
118,894
|
|
119,745
|
|
122,859
|
|
122,838
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest Expense
|
|
|
|
|
|
|
|
|
|
|
|
Interest-bearing demand deposits
|
585
|
|
625
|
|
587
|
|
642
|
|
702
|
|
|
Savings
deposits and money market accounts
|
4,857
|
|
5,356
|
|
6,082
|
|
6,662
|
|
7,437
|
|
|
Brokered
and time deposits
|
5,561
|
|
5,895
|
|
6,528
|
|
6,692
|
|
7,367
|
|
|
Short-term
borrowings
|
152
|
|
466
|
|
566
|
|
827
|
|
962
|
|
|
Long-term
debt
|
5,511
|
|
5,463
|
|
5,479
|
|
5,483
|
|
6,023
|
|
|
Total interest expense
|
16,666
|
|
17,805
|
|
19,242
|
|
20,306
|
|
22,491
|
|
|
Net interest
income
|
102,982
|
|
101,089
|
|
100,503
|
|
102,553
|
|
100,347
|
|
|
Provision for loan and covered loan
losses
|
31,611
|
|
32,615
|
|
31,093
|
|
37,578
|
|
35,166
|
|
|
Net
interest income after provision for
|
|
|
|
|
|
|
|
|
|
|
|
loan and covered loan
losses
|
71,371
|
|
68,474
|
|
69,410
|
|
64,975
|
|
65,181
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-interest Income
|
|
|
|
|
|
|
|
|
|
|
|
Trust and
Investments
|
3,992
|
|
4,452
|
|
4,720
|
|
4,662
|
|
4,574
|
|
|
Mortgage
banking
|
3,032
|
|
1,565
|
|
704
|
|
1,402
|
|
3,479
|
|
|
Capital
markets products
|
5,471
|
|
5,510
|
|
3,871
|
|
4,489
|
|
6,791
|
|
|
Treasury
management
|
5,283
|
|
5,016
|
|
4,873
|
|
4,751
|
|
4,625
|
|
|
Loan and
credit-related fees
|
5,606
|
|
5,413
|
|
5,290
|
|
5,898
|
|
4,710
|
|
|
Other
income, service charges, and fees
|
1,645
|
|
1,309
|
|
1,464
|
|
2,058
|
|
1,377
|
|
|
Net
securities gains
|
364
|
|
4,370
|
|
670
|
|
367
|
|
9,309
|
|
|
Total non-interest
income
|
25,393
|
|
27,635
|
|
21,592
|
|
23,627
|
|
34,865
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-interest Expense
|
|
|
|
|
|
|
|
|
|
|
|
Salaries
and employee benefits
|
40,729
|
|
38,841
|
|
38,636
|
|
38,557
|
|
38,577
|
|
|
Net
occupancy expense
|
7,394
|
|
7,515
|
|
7,545
|
|
7,532
|
|
7,385
|
|
|
Technology
and related costs
|
3,142
|
|
2,856
|
|
2,729
|
|
2,661
|
|
2,447
|
|
|
Marketing
|
2,250
|
|
2,218
|
|
2,500
|
|
1,943
|
|
1,997
|
|
|
Professional services
|
2,126
|
|
2,434
|
|
2,312
|
|
2,334
|
|
3,020
|
|
|
Outsourced
servicing costs
|
2,077
|
|
1,918
|
|
1,852
|
|
2,154
|
|
1,950
|
|
|
Net
foreclosed property expenses
|
6,862
|
|
7,129
|
|
7,485
|
|
6,306
|
|
7,028
|
|
|
Postage,
telephone, and delivery
|
953
|
|
944
|
|
931
|
|
888
|
|
1,049
|
|
|
Insurance
|
3,462
|
|
5,393
|
|
5,092
|
|
7,340
|
|
8,348
|
|
|
Loan and
collection expense
|
3,840
|
|
2,931
|
|
4,247
|
|
2,553
|
|
4,029
|
|
|
Other
expenses
|
3,395
|
|
2,855
|
|
2,335
|
|
3,081
|
|
6,318
|
|
|
Total non-interest
expense
|
76,230
|
|
75,034
|
|
75,664
|
|
75,349
|
|
82,148
|
|
|
Income
before income taxes
|
20,534
|
|
21,075
|
|
15,338
|
|
13,253
|
|
17,898
|
|
|
Income tax
provision
|
9,468
|
|
7,593
|
|
6,320
|
|
2,279
|
|
5,919
|
|
|
Net income
|
11,066
|
|
13,482
|
|
9,018
|
|
10,974
|
|
11,979
|
|
|
Net income
attributable to noncontrolling interests
|
7
|
|
33
|
|
58
|
|
72
|
|
67
|
|
|
Net income attributable
to controlling interests
|
11,059
|
|
13,449
|
|
8,960
|
|
10,902
|
|
11,912
|
|
|
Preferred
stock dividends and discount accretion
|
3,430
|
|
3,426
|
|
3,419
|
|
3,415
|
|
3,409
|
|
|
Net income available to
common stockholders
|
$
7,629
|
|
$
10,023
|
|
$
5,541
|
|
$
7,487
|
|
$
8,503
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Per
Common Share Data
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
$
0.11
|
|
$
0.14
|
|
$
0.08
|
|
$
0.10
|
|
$
0.12
|
|
|
Diluted
|
$
0.11
|
|
$
0.14
|
|
$
0.08
|
|
$
0.10
|
|
$
0.12
|
|
|
Common
dividends per share
|
$
0.01
|
|
$
0.01
|
|
$
0.01
|
|
$
0.01
|
|
$
0.01
|
|
|
Weighted-average common shares outstanding
|
70,540
|
|
70,479
|
|
70,428
|
|
70,347
|
|
70,098
|
|
|
Weighted-average diluted common shares
outstanding
|
70,713
|
|
70,621
|
|
70,663
|
|
70,396
|
|
70,135
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Consolidated Balance Sheets
|
|
|
|
|
|
|
|
|
|
|
(Dollars in thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
12/31/11
|
|
09/30/11
|
|
06/30/11
|
|
03/31/11
|
|
12/31/10
|
|
|
unaudited
|
|
unaudited
|
|
unaudited
|
|
unaudited
|
|
audited
|
|
Assets
|
|
|
|
|
|
|
|
|
|
|
Cash and
due from banks
|
$
156,131
|
|
$
171,268
|
|
$
160,289
|
|
$
181,738
|
|
$
112,772
|
|
Fed funds
sold and other short-term investments
|
205,610
|
|
248,559
|
|
457,422
|
|
621,206
|
|
541,316
|
|
Loans held
for sale
|
32,049
|
|
24,126
|
|
13,503
|
|
22,611
|
|
30,758
|
|
Securities
available-for-sale, at fair value
|
1,783,465
|
|
1,872,587
|
|
2,057,290
|
|
1,892,304
|
|
1,881,786
|
|
Securities
held-to-maturity, at amortized cost
|
490,143
|
|
273,200
|
|
-
|
|
-
|
|
-
|
|
Non-marketable equity investments
|
43,604
|
|
43,894
|
|
20,406
|
|
23,490
|
|
23,537
|
|
Loans -
excluding covered assets, net of unearned fees
|
9,008,561
|
|
8,674,955
|
|
8,672,642
|
|
9,037,067
|
|
9,114,357
|
|
Allowance
for loan losses
|
(191,594)
|
|
(200,041)
|
|
(206,286)
|
|
(218,237)
|
|
(222,821)
|
|
Loans, net of allowance for loan losses and unearned fees
|
8,816,967
|
|
8,474,914
|
|
8,466,356
|
|
8,818,830
|
|
8,891,536
|
|
Covered
assets
|
306,807
|
|
318,973
|
|
346,452
|
|
364,372
|
|
397,210
|
|
Allowance
for covered loan losses
|
(25,939)
|
|
(16,689)
|
|
(16,904)
|
|
(19,738)
|
|
(15,334)
|
|
Covered assets, net of
allowance for covered loan losses
|
280,868
|
|
302,284
|
|
329,548
|
|
344,634
|
|
381,876
|
|
Other real
estate owned, excluding covered assets
|
125,729
|
|
116,364
|
|
123,997
|
|
93,770
|
|
88,728
|
|
Premises,
furniture, and equipment, net
|
38,633
|
|
39,069
|
|
38,171
|
|
39,019
|
|
40,975
|
|
Accrued
interest receivable
|
35,732
|
|
32,686
|
|
32,128
|
|
33,960
|
|
33,854
|
|
Investment
in bank owned life insurance
|
50,966
|
|
50,565
|
|
50,183
|
|
49,799
|
|
49,408
|
|
Goodwill
|
94,571
|
|
94,584
|
|
94,596
|
|
94,609
|
|
94,621
|
|
Other
intangible assets
|
15,353
|
|
15,715
|
|
16,089
|
|
16,464
|
|
16,840
|
|
Capital
markets derivative assets
|
101,676
|
|
111,248
|
|
93,453
|
|
87,273
|
|
100,250
|
|
Other
assets
|
145,373
|
|
148,798
|
|
161,946
|
|
177,735
|
|
177,364
|
|
Total assets
|
$12,416,870
|
|
$12,019,861
|
|
12,115,377
|
|
$12,497,442
|
|
$12,465,621
|
|
|
|
|
|
|
|
|
|
|
|
|
Liabilities
|
|
|
|
|
|
|
|
|
|
|
Demand
deposits:
|
|
|
|
|
|
|
|
|
|
|
Noninterest-bearing
|
$
3,244,307
|
|
$
2,832,481
|
|
$
2,527,230
|
|
$
2,438,709
|
|
$
2,253,661
|
|
Interest-bearing
|
595,238
|
|
611,293
|
|
531,107
|
|
540,215
|
|
616,761
|
|
Savings
deposits and money market accounts
|
4,378,220
|
|
4,392,697
|
|
4,497,297
|
|
4,831,253
|
|
4,821,823
|
|
Brokered
deposits
|
815,951
|
|
902,002
|
|
1,342,422
|
|
1,467,196
|
|
1,450,827
|
|
Time
deposits
|
1,359,138
|
|
1,370,190
|
|
1,336,212
|
|
1,348,603
|
|
1,392,357
|
|
Total deposits
|
10,392,854
|
|
10,108,663
|
|
10,234,268
|
|
10,625,976
|
|
10,535,429
|
|
Short-term
borrowings
|
156,000
|
|
59,154
|
|
63,311
|
|
88,468
|
|
118,561
|
|
Long-term
debt
|
379,793
|
|
379,793
|
|
409,793
|
|
409,793
|
|
414,793
|
|
Accrued
interest payable
|
5,567
|
|
5,841
|
|
5,767
|
|
5,529
|
|
5,968
|
|
Capital
markets derivative liabilities
|
104,140
|
|
113,968
|
|
95,043
|
|
88,351
|
|
102,018
|
|
Other
liabilities
|
81,764
|
|
66,266
|
|
46,547
|
|
41,193
|
|
60,942
|
|
Total liabilities
|
11,120,118
|
|
10,733,685
|
|
10,854,729
|
|
11,259,310
|
|
11,237,711
|
|
|
|
|
|
|
|
|
|
|
|
|
Equity
|
|
|
|
|
|
|
|
|
|
|
Preferred
stock - Series B
|
240,403
|
|
240,020
|
|
239,642
|
|
239,270
|
|
238,903
|
|
Common
stock
|
71,483
|
|
71,220
|
|
71,155
|
|
71,036
|
|
70,972
|
|
Treasury
stock
|
(21,454)
|
|
(20,680)
|
|
(20,615)
|
|
(20,312)
|
|
(20,054)
|
|
Additional
paid-in capital
|
968,787
|
|
965,640
|
|
963,156
|
|
959,135
|
|
954,977
|
|
Accumulated deficit
|
(9,164)
|
|
(16,075)
|
|
(25,388)
|
|
(30,223)
|
|
(36,999)
|
|
Accumulated other comprehensive income, net of tax
|
46,697
|
|
46,051
|
|
32,535
|
|
19,121
|
|
20,078
|
|
Total stockholders'
equity
|
1,296,752
|
|
1,286,176
|
|
1,260,485
|
|
1,238,027
|
|
1,227,877
|
|
Noncontrolling interests
|
-
|
|
-
|
|
163
|
|
105
|
|
33
|
|
Total equity
|
1,296,752
|
|
1,286,176
|
|
1,260,648
|
|
1,238,132
|
|
1,227,910
|
|
Total liabilities and
equity
|
$12,416,870
|
|
$12,019,861
|
|
$12,115,377
|
|
$12,497,442
|
|
$12,465,621
|
|
|
|
|
|
|
|
|
|
|
|
|
Selected Financial Data
|
|
|
|
|
|
|
|
|
|
|
|
Unaudited
|
|
|
|
|
|
|
|
|
|
|
|
(Amounts in thousands except per share
data)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
4Q11
|
|
3Q11
|
|
2Q11
|
|
1Q11
|
|
4Q10
|
|
|
Selected Statement of Income Data:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
interest income
|
$
102,982
|
|
$
101,089
|
|
$
100,503
|
|
$
102,553
|
|
$
100,347
|
|
|
|
|
Net
revenue (1) (2)
|
$
129,045
|
|
$
129,404
|
|
$
122,811
|
|
$
126,970
|
|
$
136,088
|
|
|
|
|
Operating
profit (1) (2)
|
$
52,815
|
|
$
54,370
|
|
$
47,147
|
|
$
51,621
|
|
$
53,940
|
|
|
|
|
Provision
for loan and covered loan losses
|
$
31,611
|
|
$
32,615
|
|
$
31,093
|
|
$
37,578
|
|
$
35,166
|
|
|
|
|
Income
before taxes
|
$
20,534
|
|
$
21,075
|
|
$
15,338
|
|
$
13,253
|
|
$
17,898
|
|
|
|
|
Net income
available to common stockholders
|
$
7,629
|
|
$
10,023
|
|
$
5,541
|
|
$
7,487
|
|
$
8,503
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Per
Common Share Data:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
earnings per share
|
$
0.11
|
|
$
0.14
|
|
$
0.08
|
|
$
0.10
|
|
$
0.12
|
|
|
|
|
Diluted
earnings per share
|
$
0.11
|
|
$
0.14
|
|
$
0.08
|
|
$
0.10
|
|
$
0.12
|
|
|
|
|
Dividends
|
$
0.01
|
|
$
0.01
|
|
$
0.01
|
|
$
0.01
|
|
$
0.01
|
|
|
|
|
Book value
(period end) (1)
|
$
14.72
|
|
$
14.57
|
|
$
14.22
|
|
$
13.98
|
|
$
13.87
|
|
|
|
|
Tangible
book value (period end) (1) (2)
|
$
13.19
|
|
$
13.04
|
|
$
12.68
|
|
$
12.43
|
|
$
12.30
|
|
|
|
|
Market
value (close)
|
$
10.98
|
|
$
7.52
|
|
$
13.80
|
|
$
15.29
|
|
$
14.38
|
|
|
|
|
Book value
multiple
|
0.75
|
x
|
0.52
|
x
|
0.97
|
x
|
1.09
|
x
|
1.04
|
x
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Share
Data:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted
average common shares outstanding
|
70,540
|
|
70,479
|
|
70,428
|
|
70,347
|
|
70,098
|
|
|
|
|
Diluted
average common shares outstanding
|
70,713
|
|
70,621
|
|
70,663
|
|
70,396
|
|
70,135
|
|
|
|
|
Common
shares issued (at period end)
|
72,514
|
|
72,491
|
|
72,497
|
|
72,096
|
|
71,979
|
|
|
|
|
Common
shares outstanding (at period end)
|
71,745
|
|
71,789
|
|
71,808
|
|
71,428
|
|
71,327
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Performance Ratios:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Return on
average assets
|
0.36%
|
|
0.44%
|
|
0.29%
|
|
0.35%
|
|
0.38%
|
|
|
|
|
Return on
average common equity
|
2.86%
|
|
3.80%
|
|
2.18%
|
|
3.03%
|
|
3.31%
|
|
|
|
|
Net
interest margin (1) (2)
|
3.48%
|
|
3.49%
|
|
3.36%
|
|
3.46%
|
|
3.33%
|
|
|
|
|
Covered asset accretion contribution to net interest margin
|
0.00%
|
|
0.03%
|
|
0.03%
|
|
0.05%
|
|
0.05%
|
|
|
|
|
Net
interest margin, excluding impact of covered asset
|
|
|
|
|
|
|
|
|
|
|
|
|
|
accretion
|
3.48%
|
|
3.46%
|
|
3.33%
|
|
3.41%
|
|
3.28%
|
|
|
|
|
Fee
revenue as a percent of total revenue (1)
|
19.55%
|
|
18.71%
|
|
17.23%
|
|
18.49%
|
|
20.30%
|
|
|
|
|
Non-interest income to average assets
|
0.82%
|
|
0.91%
|
|
0.69%
|
|
0.77%
|
|
1.11%
|
|
|
|
|
Non-interest expense to average assets
|
2.45%
|
|
2.46%
|
|
2.43%
|
|
2.44%
|
|
2.61%
|
|
|
|
|
Net
overhead ratio (1)
|
1.64%
|
|
1.56%
|
|
1.74%
|
|
1.68%
|
|
1.50%
|
|
|
|
|
Efficiency
ratio(1) (2)
|
59.07%
|
|
57.98%
|
|
61.61%
|
|
59.34%
|
|
60.36%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Selected Information:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Assets
under management and administration (1)
|
$4,303,547
|
|
$4,161,614
|
|
$4,395,516
|
|
$4,313,843
|
|
$4,271,602
|
|
|
|
|
Credit valuation adjustment on capital markets
|
|
|
|
|
|
|
|
|
|
|
|
|
|
derivatives(1)
|
$
244
|
|
$
(1,207)
|
|
$
(573)
|
|
$
817
|
|
$
1,826
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance
Sheet Ratios:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans to
Deposits (period end)(3)
|
86.68%
|
|
85.82%
|
|
84.74%
|
|
85.05%
|
|
86.51%
|
|
|
|
|
Average
interest-earning assets to average interest-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
bearing liabilities
|
150.70%
|
|
145.30%
|
|
139.77%
|
|
134.88%
|
|
134.76%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Capital
Ratios (period end):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
risk-based capital (1) (4)
|
14.28%
|
|
14.82%
|
|
15.12%
|
|
14.55%
|
|
14.18%
|
|
|
|
|
Tier 1
risk-based capital (1) (4)
|
12.38%
|
|
12.89%
|
|
12.95%
|
|
12.41%
|
|
12.06%
|
|
|
|
|
Leverage(1)
|
11.33%
|
|
11.48%
|
|
11.00%
|
|
10.91%
|
|
10.78%
|
|
|
|
|
Tier 1
common capital (1) (2) (4)
|
8.04%
|
|
8.34%
|
|
8.34%
|
|
7.97%
|
|
7.69%
|
|
|
|
|
Tangible
common equity to tangible assets (1) (2)
|
7.69%
|
|
7.86%
|
|
7.58%
|
|
7.17%
|
|
7.10%
|
|
|
|
|
Total
equity to total assets
|
10.44%
|
|
10.70%
|
|
10.41%
|
|
9.91%
|
|
9.85%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1)
Refer to Glossary of Terms for definition.
|
|
|
|
(2)
This is a non-U.S. GAAP measure, refer to Non-U.S. GAAP Measures
for a reconciliation from non-U.S. GAAP to U.S. GAAP.
|
|
|
|
(3)Excludes covered assets. Refer to Glossary
of Terms for definition.
|
|
|
|
(4)This has been revised from the third
quarter 2011 presentation due to correction of a mathematical
computation.
|
|
SOURCE PrivateBancorp, Inc.