CHICAGO, Jan. 26 /PRNewswire-FirstCall/ -- PrivateBancorp, Inc. (Nasdaq: PVTB) today reported a net loss for the fourth quarter 2008 of $62.0 million, or $1.96 per diluted share, compared to a net loss of $15.1 million, or $0.68 per diluted share, for the fourth quarter 2007.

The net loss for the fiscal year ended December 31, 2008, was $91.5 million, or $3.11 per diluted share, compared to net income of $11.8 million, or $0.53 per diluted share, for the 2007 fiscal year.

"We knew that 2008 would be a challenging year but we could not predict the magnitude of the impact from the unprecedented downturn in the economy," said Larry D. Richman, President and Chief Executive Officer, PrivateBancorp, Inc. "While we are pleased with the outcomes of the first full year under our Strategic Growth Plan, the economic environment caused significant weakness in our legacy loan portfolio. During the fourth quarter, we undertook a comprehensive loan review, which resulted in substantial charge-offs. We believe it was prudent to proactively address these credit quality issues given the rapid deterioration in the market.

"Throughout 2008 we strengthened our capital base and made substantial progress implementing our Strategic Growth Plan," Richman added. "We added a large number of new client relationships that resulted in almost $4 billion in new loans, additional client deposits of nearly $3 billion and almost $15 million in new fee income. Without question, the economic environment will remain a challenge in 2009. Yet we are confident we have significant momentum and we will continue to drive toward improving operating leverage and achieving positive earnings. I believe over the long-term, the market opportunities are considerable and we will continue to achieve the objectives of the Strategic Growth Plan."

Comprehensive Loan Review and Credit Quality

As a result of the rapid deterioration in economic conditions, in the fourth quarter the Company undertook a comprehensive review of all residential development loans and all underperforming assets. The intent of the review was to identify inherent losses where cash flow and guarantor support indicated likely non-performance and where losses from deteriorating asset values were evident. The Company believes the review was prudent in light of market conditions, particularly in the residential sector in Georgia and Michigan. The actions proactively addressed the deterioration in the loan portfolio and the Company believes the result is reduced balance sheet risk.

The fourth quarter loan loss provision was $119.3 million and resulted from $108.8 million net charge-offs (an annualized rate of 5.49 percent of average total loans) and $10.5 million in additional loan-loss provision primarily related to growth in the loan portfolio. Of the fourth quarter net charge-offs, $86.2 million, or 79.2 percent, were related to the residential development portfolio. Total charge-offs for the year were $125.8 million, or a net charge-off ratio of 2.00 percent, compared to $6.1 million, or a net charge-off ratio of 0.17 percent, for the year ended December 31, 2007.

None of the losses reported were from loans originated as part of the Strategic Growth Plan. These loans continue to perform as expected with no significant payment past dues.

In addition, the Company strengthened its allowance for loan losses in recognition of the weakened credit climate expected to remain through at least 2009. The allowance for loan losses as a percentage of total loans was 1.40 percent at December 31, 2008, compared to 1.37 percent at September 30, 2008 and 1.17 percent at December 31, 2007. The allowance for loan losses as a percent of non-performing loans decreased to 85 percent in the fourth quarter 2008 from 116 percent in the third quarter 2008 and 125 percent in the fourth quarter 2007. The lower ratio is warranted given that a significant portion of these loans were charged down to fair value.

After giving effect to these charge-offs, as of December 31, 2008, the Company had approximately $400 million in residential development loans remaining, with 59 percent in single family homes/condominiums built for sale, which is held as construction exposure, and 41 percent in land (developed and undeveloped), which is held as commercial real estate exposure.

The Company made a strategic decision in early 2008 to curtail any new production in the residential development sector and will allow a substantial portion of this portfolio to wind down as residential development lending is not a core component of the Strategic Growth Plan.

Non-performing assets to total assets were 1.55 percent at December 31, 2008, compared to 1.18 percent at September 30, 2008, and 0.97 percent at December 31, 2007. The Company had $155.7 million in total non-performing assets at December 31, 2008, compared to $106.5 million at September 30, 2008, and $48.3 million at December 31, 2007. Non-accruing loans totaled $131.9 million and other real estate owned (OREO) was $23.8 million. Approximately $105.7 million, or 68 percent, of the non-performing assets were related to the residential development sector.

Delinquencies (loans 30-89 days past due and still accruing) were $35.4 million, or 0.44 percent, of total loans at December 31, 2008, compared to $50.0 million, or 0.67 percent, of total loans at September 30, 2008, and $102.6 million, or 2.46 percent, of total loans at December 31, 2007. The Company had no loans over 90 days past due and accruing.

Execution of the Strategic Growth Plan

During the fourth quarter, the Company continued to execute on fundamental elements of its Strategic Growth Plan:



    -- The Company's loan portfolio increased in the fourth quarter by more
       than $700 million, or $595.7 million after net charges of $108.8
       million, compared to an increase of $1.0 billion in the third quarter,
       through continued selective strategic growth.
    -- Client deposits grew $1.0 billion, or 20 percent, during the fourth
       quarter, compared to $615.4 million, or 14 percent, in the third
       quarter 2008, once again supporting the Company's goal to fund a
       substantial portion of loan growth with client deposits. Quarterly
       average balances of business DDA accounts, an important measure of new
       client growth, grew by 26 percent over the third quarter.
    -- Revenue grew 9 percent to $71.7 million in the fourth quarter from
       $65.8 million in the third quarter, with continued strong new fee
       revenue from the Treasury Management and Capital Markets groups.
    -- After a year of significant investment in personnel for client
       development and support infrastructure, hiring related to the Strategic
       Growth Plan is largely complete.

Progress against Strategic Growth Plan objectives is measured by key performance indicators including revenue, deposit and loan growth, asset quality, operating efficiency and profitability, as well as selective client acquisition. Despite the current economic challenges, the Company believes attractive market opportunities continue to exist, and it will selectively pursue those that drive long-term growth.

The Company makes loans based on relationships that are well-tested and analyzed. All loans are subject to a selective screening and approval process including downside stress testing and consideration of the economic climate. All production is originated to hold on the balance sheet.

Balance Sheet

Total assets increased over 100 percent to $10.0 billion at December 31, 2008, from $5.0 billion at December 31, 2007. Total loans increased 92 percent to $8.0 billion at December 31, 2008, from $4.2 billion at December 31, 2007. Commercial loans increased to $4.0 billion, or 50 percent of the Company's total loans, from $1.3 billion, or 32 percent of total loans, at the end of 2007. Commercial loans include commercial and industrial and owner-occupied commercial real estate loans and continue to be the fastest-growing segment of the loan portfolio. Commercial real estate loans decreased to 30 percent of the Company's total loans at the end of the fourth quarter, compared to 38 percent of total loans at December 31, 2007. Management believes further diversifying the portfolio has resulted in a more preferred loan mix relative to the end of 2007.

Total deposits increased 113 percent to $8.0 billion at December 31, 2008, from $3.8 billion at December 31, 2007. Approximately $2.8 billion of the increase in total deposits was attributable to an increase in client deposits, and includes $679.0 million in client CDARS(R) deposits. Brokered deposits (excluding client CDARS) were 25 percent of total deposits in the fourth quarter 2008, 33 percent of total deposits in the previous quarter and 14 percent of total deposits as of December 31, 2007. Client deposits were $6.0 billion, or 75 percent, of total deposits at the end of the fourth quarter. During the quarter, the Company facilitated its deposit growth by aggressively pursuing deposits from existing and new clients, expanding its business DDA account balances through its enhanced treasury management services, and continuing implementation of the CDARS deposit program.

Funds borrowed, which include federal funds purchased, FHLB advances, borrowings under the Company's credit facility, and convertible senior notes, increased to $1.0 billion at December 31, 2008, from $560.8 million at December 31, 2007, primarily due to increased FHLB borrowings. Junior subordinated deferrable-interest debentures increased to $244.8 million from $101.0 million at December 31, 2007.

The Company's investment securities portfolio increased to $1.5 billion at December 31, 2008, from $538.7 million at December 31, 2007. Net unrealized gains in the securities portfolio increased to $44.2 million compared to $12.5 million at the end of 2007. The Company's securities portfolio is primarily comprised of U.S. government agency backed mortgage pools, agency collateralized mortgage obligations, and investment grade municipal bonds. The Company does not own Freddie Mac or Fannie Mae preferred stock or sub-debt obligations, bank trust preferred securities, nor does it own any sub-prime mortgage-backed securities.

Revenue Growth

Revenue grew 9 percent over the third quarter 2008 to $71.7 million from $65.8 million, reflecting an increase in net interest income.

Net interest income totaled $59.2 million in the fourth quarter 2008, compared to $53.2 million in the third quarter 2008, an increase of 11 percent, and $31.7 million for the fourth quarter 2007, an increase of 86 percent. Net interest margin (on a tax equivalent basis) decreased to 2.62 percent compared to 2.72 percent for the third quarter 2008 and 3.00 percent for the fourth quarter 2007. Net interest margin declined throughout 2008 due to continued decreases in the prime and LIBOR rates of interest as our interest-earning assets repriced more quickly than our interest-bearing liabilities, and the impact of non-accruing loans on interest income.

Non-interest income, excluding securities gains and losses, was $12.4 million, compared to $11.5 million in the third quarter 2008, and $6.2 million in the fourth quarter 2007. The Company continued to experience robust growth in fee income from its Treasury Management and Capital Markets groups. Treasury Management and Capital Markets contributed a combined $5.9 million in new fee income in the fourth quarter 2008, compared to $4.5 million in the third quarter 2008, and $151,000 in the fourth quarter 2007. Banking and other services income decreased to $1.3 million at the end of the fourth quarter 2008 from $1.7 million in the third quarter 2008 and $484,000 at the end of the fourth quarter 2007, comprised mostly of letter of credit fees.

The PrivateWealth Group's assets under management were $3.3 billion at December 31, 2008, a slight decrease from $3.4 billion at September 30, 2008 and December 31, 2007. Net additions to existing and new accounts during the fourth quarter 2008 nearly offset decreases in assets under management related to market performance. The PrivateWealth Group's fee revenue was flat at $4.1 million in the fourth quarter 2008 compared to the prior quarter, and slightly below the $4.3 million in the fourth quarter 2007.

Expenses

Non-interest expense was $53.9 million in the fourth quarter 2008, compared to $47.1 million in the third quarter 2008, an increase of 14 percent, and $51.8 million in the fourth quarter 2007, an increase of 4 percent. The majority of the increase was due to credit-related actions including write-downs related to other real estate owned; professional fees related to capital raising activities and ongoing professional expenses related to infrastructure development. These factors also contributed to an increase in the efficiency ratio to 75.13 percent in the fourth quarter 2008 from 71.57 percent at the end of the third quarter 2008.

Capital Resources and Liquidity

The Company today announced it has received preliminary approval of a $244 million investment from the U.S. Treasury Department as part of the Capital Purchase Program under the Emergency Economic Stabilization Act of 2008. The TARP capital infusion will support the Company's lending activity under the Strategic Growth Plan and further enhanced its "well capitalized" status. Since the inception of the Strategic Growth Plan in October 2007, the Company has added $800 million in new regulatory capital, including the TARP capital.

As of December 31, 2008, the Company had total risk-based capital at 10.32 percent and Tier 1 risk-based capital ratio at 7.25 percent, exceeding the well-capitalized thresholds of 10 percent and 6 percent, respectively. With the addition of the TARP capital, the Company's pro forma total risk-based capital ratio and Tier 1 risk-based capital ratio at December 31, 2008, would have been 12.96 percent and 10.44 percent, respectively.

The Company experienced strong deposit growth of 7 percent during the fourth quarter that improved its overall liquidity. Additionally, the Company increased the size of its securities portfolio to 14 percent of total assets.

About PrivateBancorp, Inc.

PrivateBancorp, Inc. is a growing diversified financial services company with 23 offices in nine states and more than $10 billion in assets as of December 31, 2008. Through its subsidiaries, PrivateBancorp delivers customized business and personal financial services to middle-market commercial and commercial real estate companies, as well as business owners, executives, entrepreneurs and wealthy families.

Additional information can be found in the Investor Relations section of PrivateBancorp, Inc.'s website at http://www.pvtb.com.

Forward-Looking Statements: Statements contained in this news release that are not historical facts may constitute forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended. The Company's ability to predict results or the actual effect of future plans or strategies is inherently uncertain. Factors which could have a material adverse effect on the operations and future prospects of the Company include, but are not limited to, unforeseen difficulties and higher than expected costs associated with the continued implementation of our Strategic Growth Plan, fluctuations in market rates of interest and loan and deposit pricing in the Company's market areas; the effect of continued margin pressure on the Company's earnings; further deterioration in asset quality; the failure to obtain on terms acceptable to us, or at all, the capital necessary to fund our growth and maintain our regulatory capital ratios above the "well-capitalized" threshold; the need to continue to increase our allowance for loan losses; additional charges related to asset impairments; insufficient liquidity/funding sources or the inability to obtain on terms acceptable to the Company the funding necessary to fund its loan growth; legislative or regulatory changes, particularly changes in the regulation of financial services companies and/or the products and services offered by financial services companies; adverse developments in the Company's loan or investment portfolios; slower than anticipated growth of the Company's business or unanticipated business declines, including as a result of continual negative economic conditions; competition; unforeseen difficulties in integrating new hires; failure to improve operating efficiencies through expense controls; and the possible dilutive effect of potential acquisitions, expansion or future capital raises. These risks and uncertainties should be considered in evaluating forward-looking statements and undue reliance should not be placed on such statements. The Company assumes no obligation to update publicly any of these statements in light of future events unless required under the federal securities laws.



    Editor's Note: Financial highlights attached.



                             PrivateBancorp, Inc.
                        Consolidated Income Statements
                                  Unaudited
                 (amounts in thousands except per share data)

                                       Three Months Ended  Twelve Months Ended
                                          December 31,        December 31,
                                         2008      2007      2008      2007

    Interest Income
      Loans, including fees            $107,370   $71,062  $367,104  $282,979
      Federal funds sold and interest-
       bearing deposits                     488       275     1,145     1,011
      Securities:
        Taxable                          10,754     3,951    28,657    14,584
        Exempt from federal income
         taxes                            2,025     2,313     8,477     9,350
    Total Interest Income               120,637    77,601   405,383   307,924

    Interest Expense
      Deposits:
        Interest-bearing demand             285       451     1,515     1,959
        Savings and money market         11,579    16,813    48,880    68,446
        Brokered and other time          36,405    20,894   126,316    83,640
      Funds borrowed                      8,064     6,087    22,205    19,393

      Junior subordinated deferrable
       interest debentures held by
       trusts that issued guaranteed
       capital debt securities            5,122     1,608    14,710     6,364
    Total Interest Expense               61,455    45,853   213,626   179,802

    Net Interest Income                  59,182    31,748   191,757   128,122
      Provision for loan losses         119,250    10,171   189,579    16,934
    Net Interest Income after
     Provision for Loan Losses          (60,068)   21,577     2,178   111,188

    Non-interest Income
      The PrivateWealth Group fee
       revenue                            4,140     4,310    16,968    16,188
      Mortgage banking income               622       828     4,158     4,528
      Capital markets product income      4,767       -      11,049       -
      Treasury management income          1,086       151     2,369       579
      Bank owned life insurance             501       431     1,809     1,656
      Banking and other services          1,297       484     4,453     2,975
      Net securities (loss) gain           (770)      -         510       348
    Total Non-interest Income            11,643     6,204    41,316    26,274

    Non-interest Expense
      Salaries and employee benefits     27,219    31,673   115,678    71,219
      Occupancy expense, net              4,543     3,918    17,098    13,204
      Professional fees                   5,766     6,442    16,450    11,876
      Investment manager expenses           690       925     3,299     3,432
      Marketing                           2,781     2,422    10,395     6,099
      Data processing                     1,634     1,282     5,576     4,206
      Postage, telephone, and delivery      563       483     2,226     1,706
      Office supplies and printing          405       362     1,392     1,084
      Amortization of intangibles           267       240     1,164       966
      Insurance                           2,341       772     7,408     1,937
      Other non-interest expense          7,694     3,291    14,439     6,680
    Total Non-interest Expense           53,903    51,810   195,125   122,409

      Minority interest expense              53        78       309       363
    (Loss) Income Before Income Taxes  (102,381)  (24,107) (151,940)   14,690
      Income tax (benefit) provision    (40,370)   (8,962)  (60,439)    2,883
    Net (loss) income                   (62,011) ($15,145)  (91,501)   11,807
      Preferred stock dividends             146       107       546       107
    Net (loss) income available to
     Common Shareholders                (62,157) ($15,252) ($92,047)  $11,700

    Weighted Average Common Shares
     Outstanding                         31,733    22,537    29,553    21,572
    Diluted Average Common Shares
     Outstanding                         31,733    22,537    29,553    22,286

    Per Common Share Information
      Basic                              $(1.96)   $(0.68)   $(3.11)    $0.54
      Diluted                            $(1.96)   $(0.68)   $(3.11)    $0.53
      Dividends                          $0.075    $0.075    $0.300    $0.300

    Note 1:  Certain reclassifications have been made to prior period
    financial statements to place them on a basis comparable with the current
    period financial statements.

    Note 2: Diluted shares are equal to Basic shares for the three and twelve
    months ended December 31, 2008 and the three months ended December 31,
    2007 due to the net loss. The calculation of diluted earnings per share
    results in anti-dilution.



                             PrivateBancorp, Inc.
                   Quarterly Consolidated Income Statements
                                  Unaudited
                 (amounts in thousands except per share data)

                             4Q08      3Q08      2Q08     1Q08      4Q07

    Interest Income
      Loans, including
       fees                $107,370  $99,408   $84,231  $76,113   $71,062
      Federal funds
       sold and
       interest-bearing
       deposits                 488      217       207      246       275
      Securities:
        Taxable              10,754    8,161     5,456    4,286     3,951
        Exempt from
         federal income
         taxes                2,025    2,027     2,181    2,244     2,313
    Total Interest
     Income                 120,637  109,813    92,075   82,889    77,601

    Interest Expense
      Deposits:
        Interest-bearing
         demand                 285      383       425      422       451
        Savings and money
         market              11,579   12,785    11,303   13,221    16,813
        Brokered and other
         time                36,405   33,598    29,950   26,358    20,894
      Funds borrowed          8,064    4,634     4,523    4,996     6,087
      Junior subordinated
       deferrable interest
       debentures held by
       trusts that issued
       guaranteed capital
       debt securities        5,122    5,258     2,758    1,572     1,608
    Total Interest Expense   61,455   56,658    48,959   46,569    45,853

    Net Interest Income      59,182   53,155    43,116   36,320    31,748
      Provision for loan
       losses               119,250   30,173    23,024   17,133    10,171
    Net Interest Income
     after Provision for
     Loan Losses            (60,068)  22,982    20,092   19,187    21,577

    Non-interest Income
      The PrivateWealth
       Group fee revenue      4,140    4,059     4,350    4,419     4,310
      Mortgage banking
       income                   622      776       997    1,530       828
      Capital markets
       product income         4,767    3,932     1,959      391       -
      Treasury management
       income                 1,086      600       279      184       151
      Bank owned life
       insurance                501      439       437      432       431
      Banking and other
       services               1,297    1,728     1,119      746       484
      Net securities
       (loss) gain             (770)     180       286      814       -
    Total Non-interest
     Income                  11,643   11,714     9,427    8,516     6,204

    Non-interest Expense
      Salaries and employee
       benefits              27,219   28,895    31,817   27,749    31,673
      Occupancy expense, net  4,543    4,364     4,338    3,845     3,918
      Professional fees       5,766    3,374     5,005    2,311     6,442
      Investment manager
       expenses                 690      829       812      968       925
      Marketing               2,781    2,083     2,700    2,828     2,422
      Data processing         1,634    1,554     1,168    1,220     1,282
      Postage, telephone,
       and delivery             563      575       546      541       483
      Office supplies
       and printing             405      275       371      350       362
      Amortization
       of intangibles           267      241       422      234       240
      Insurance               2,341    2,460     1,627      870       772
      Other non-interest
       expenses               7,694    2,435     2,401    2,016     3,291
    Total Non-interest
     Expense                 53,903   47,085    51,207   42,932    51,810

      Minority interest
       expense                   53       86       101       68        78
    Loss Before Income
     Taxes                 (102,381) (12,475)  (21,789) (15,297)  (24,107)
      Income tax benefit    (40,370)  (5,211)   (8,494)  (6,364)   (8,962)
    Net loss               ($62,011) ($7,264) ($13,295) ($8,933) ($15,145)
      Preferred stock
       dividends                146      146       146      107       107
    Net loss available
     to Common
     Shareholders          ($62,157) ($7,410) ($13,441) ($9,040) ($15,252)

    Weighted Average
     Common Shares
     Outstanding             31,733   31,634    27,914   26,886    22,537
    Diluted Average
     Common Shares
     Outstanding             31,733   31,634    27,914   26,886    22,537

    Per Common Share Information
      Basic                  $(1.96)  $(0.23)   $(0.48)  $(0.34)   $(0.68)
      Diluted                $(1.96)  $(0.23)   $(0.48)  $(0.34)   $(0.68)
      Dividends              $0.075   $0.075    $0.075   $0.075    $0.075

    Note 1: Certain reclassifications have been made to prior period financial
    statements to place them on a basis comparable with the current period
    financial statements.

    Note 2: Diluted shares are equal to Basic shares for the first, second,
    third and fourth quarter 2008 and the fourth quarter 2007 due to the net
    loss. The calculation of diluted earnings per share results in anti-
    dilution.



                             PrivateBancorp, Inc.
                         Consolidated Balance Sheets
                            (dollars in thousands)

                        12/31/08   09/30/08   06/30/08   03/31/08   12/31/07
                       unaudited  unaudited  unaudited  unaudited    audited
    Assets
    Cash and due from
     banks              $131,848    $76,314    $76,924    $54,576    $51,331
    Fed funds sold and
     other short-term
     investments          98,387    363,991     41,034     22,226     13,220
      Total cash and
       cash equivalents  230,235    440,305    117,958     76,802     64,551
    Available-for-sale
     securities, at
     fair value        1,425,564    899,301    712,158    575,798    526,271
    Non-marketable
     equity investments   27,213     18,958     13,807     13,157     12,459
    Loans held for sale   17,082      6,736     10,988      9,659     19,358

    Loans net of
     unearned discount 8,036,807  7,441,137  6,417,026  5,136,066  4,177,795
    Allowance for loan
     losses             (112,672)  (102,223)   (79,021)   (61,974)   (48,891)
    Net loans          7,924,135  7,338,914  6,338,005  5,074,092  4,128,904

    Goodwill              95,045     95,045     95,045     93,341     93,341
    Premises and
     equipment, net       34,201     29,650     27,513     26,356     25,600
    Accrued interest
     receivable           34,282     32,466     27,809     25,287     24,144
    Bank owned life
     insurance            45,938     45,438     44,999     44,561     44,129
    Other assets         206,647    104,650     90,656     74,591     51,448
    Total Assets     $10,040,342 $9,011,463 $7,478,938 $6,013,644 $4,990,205

    Liabilities
    Demand deposits:
      Non-interest
       bearing          $711,693   $601,653   $548,710   $341,779   $299,043
      Interest bearing   232,099    164,318    164,541    159,003    157,761
    Savings and money
     market deposit
     accounts          2,798,882  2,407,641  2,086,929  1,663,275  1,594,172
    Brokered deposits  2,654,768  2,749,735  1,889,401  1,396,930    542,470
    Other time
     deposits          1,599,014  1,526,601  1,466,369  1,453,479  1,167,692
    Total deposits     7,996,456  7,449,948  6,155,950  5,014,466  3,761,138

    Funds borrowed     1,029,085    592,194    369,570    359,099    560,809
    Junior
     subordinated
     deferrable
     interest
     debentures
     held by
     trusts that
     issued
     guaranteed
     capital debt
     securities          244,793    244,793    244,793    101,033    101,033
    Accrued interest
     payable              37,809     31,959     30,039     17,670     16,134
    Other liabilities    126,367     52,449     33,087     28,169     50,298
    Total Liabilities $9,434,510 $8,371,343 $6,833,439 $5,520,437 $4,489,412

    Stockholders' Equity
    Preferred stock       58,070     58,070     58,070     41,000     41,000
    Common stock          32,468     32,147     31,944     27,289     27,225
    Treasury stock       (17,285)   (15,626)   (14,150)   (13,925)   (13,559)
    Additional
     paid-in-capital     480,529    474,354    467,294    314,961    311,989
    Retained earnings     24,482     89,248     99,177    115,016    126,204
    Accumulated other
     comprehensive
     income               27,568      1,927      3,164      8,866      7,934
    Total Stockholders'
     Equity             $605,832   $640,120   $645,499   $493,207   $500,793

    Total Liabilities
     and Stockholders'
     Equity          $10,040,342 $9,011,463 $7,478,938 $6,013,644 $4,990,205

    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.



                             PrivateBancorp, Inc.
                              Key Financial Data
                                  Unaudited
                 (amounts in thousands except per share data)

                          4Q08       3Q08       2Q08       1Q08       4Q07

    Selected Statement of
     Income Data:
      Net interest
       income            $59,182    $53,155    $43,116    $36,320    $31,748
      Net revenue (1)    $71,742    $65,787    $53,535    $45,862    $39,009
      Loss before
       taxes           ($102,381)  ($12,475)  ($21,789)  ($15,297)  ($24,107)
      Net loss          ($62,011)   ($7,264)  ($13,295)   ($8,933)  ($15,145)

    Per Common Share Data:
      Basic earnings
       per share          ($1.96)    ($0.23)    ($0.48)    ($0.34)    ($0.68)
      Diluted earnings
       per share (2)      ($1.96)    ($0.23)    ($0.48)    ($0.34)    ($0.68)
      Dividends           $0.075     $0.075     $0.075     $0.075     $0.075
      Book value
       (period end)       $16.32     $17.32     $17.65     $15.97     $16.38
      Tangible book
       value (period
       end) (3)           $13.29     $14.31     $14.61     $12.46     $12.82
      Market value
       (close)            $32.46     $41.66     $30.38     $31.47     $32.65
      Diluted earnings
       multiple (4)        (4.18)x   (44.83)x   (15.78)x   (23.08)x   (12.10)x
      Book value multiple   1.99 x     2.41 x     1.72 x     1.97 x     1.93 x

    Share Data:
      Weighted Average
       Common Shares
       Outstanding        31,733     31,634     27,914     26,886     22,537
      Diluted Average
       Common Shares
       Outstanding (2)    31,733     31,634     27,914     26,886     22,537
      Common shares
       issued (at
       period end)        34,043     34,028     33,656     28,686     28,439
      Common shares
       outstanding
       (at period end)    33,568     33,604     33,275     28,311     28,075

    Performance Ratios:
      Return on average
       assets             -2.61%     -0.35%     -0.80%     -0.66%     -1.30%
      Return on average
       total equity      -40.37%     -4.59%     -9.89%     -7.81%    -16.61%
      Dividend payout
       ratio              -4.28%    -35.24%    -18.93%    -24.23%    -14.30%
      Fee revenue as a
       percent of total
       revenue (5)        17.34%     17.83%     17.49%     17.49%     16.35%
      Non-interest
       income to average
       assets              0.49%      0.57%      0.57%      0.63%      0.53%
      Non-interest
       expense to
       average assets      2.27%      2.28%      3.07%      3.18%      4.45%
      Net overhead
       ratio (6)           1.78%      1.71%      2.50%      2.55%      3.92%
      Efficiency
       ratio (7)          75.13%     71.57%     95.65%     93.61%    132.81%

    Selected Financial
     Condition Data:
      Client
       deposits (8)   $6,020,646 $5,006,397 $4,390,998 $3,697,598 $3,220,464
      The Private
       Wealth Group
       assets under
       management     $3,261,061 $3,354,212 $3,305,477 $3,314,461 $3,361,171

    Balance Sheet Ratios:
      Loans to Deposits
       (period end)      100.50%     99.88%    104.24%    102.42%    111.08%
      Average interest-
       earning assets to
       average interest-
       bearing
       liabilities       112.12%    113.28%    111.69%    112.86%    111.32%

    Capital Ratios
     (period end):
      Total equity
       to total assets     6.03%      7.10%      8.63%      8.20%     10.04%
      Total risk-based
       capital ratio      10.32%     12.09%     13.47%     11.54%     14.20%
      Tier-1 risk-
       based capital
       ratio               7.25%      9.22%     10.82%      9.00%     11.39%
      Leverage ratio       7.18%      9.28%     11.46%      9.13%     10.93%
      Tangible capital
       ratio               5.08%      6.05%      7.38%      6.66%      8.20%

    (1) The sum of net interest income, on a tax equivalent basis, plus
        non-interest income.
    (2) Diluted shares are equal to Basic shares due to the net loss. The
        calculation of diluted earnings per share results in anti-dilution.
    (3) Tangible book value is total capital less goodwill and other
        intangibles divided by outstanding shares at end of period.
    (4) Period end closing stock price divided by annualized quarterly
        earnings for the quarter then ended.
    (5) Represents non-interest income less securities gains as a percentage
        of the sum of net interest income and non-interest income less
        securities gains.
    (6) Non-interest expense less non-interest income divided by average total
        assets.
    (7) Non-interest expense divided by the sum of net interest income, on a
        tax equivalent basis, plus non-interest income.
    (8) Client deposits are equal to total deposits less brokered deposits
        plus client CDARS(TM).

SOURCE PrivateBancorp, Inc.