PRIVATEBANCORP INC 
By 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.
