PrivateBancorp Reports Fourth Quarter and Full Year 2010 Results
Financial performance improves in 2010; Fourth quarter net income increases to $0.12 per share
CHICAGO, Jan. 25, 2011 /PRNewswire/ -- PrivateBancorp, Inc. (Nasdaq: PVTB) today reported net income of $8.5 million, or $0.12 per diluted share, for the fourth quarter 2010, compared to a net loss of $18.6 million, or $0.30 per diluted share, for the fourth quarter 2009. For the 12 months ended December 31, 2010, the Company had a net loss of $12.1 million, or $0.17 per diluted share, compared to a net loss of $42.5 million, or $0.95 per diluted share, for the prior year.
"Throughout 2010, we continued to reshape our business and maintained our focus on expanding new and existing client relationships," said Larry D. Richman, President and Chief Executive Officer, PrivateBancorp, Inc. "We are managing through the challenging credit environment and have seen stabilization in certain credit quality metrics. I am pleased with our net loan growth in the third and fourth quarters, showing an ability to gain market share despite the continued low loan demand.
"Strong client deposits, enhancements in our product set, and expense management helped drive net revenue and operating performance higher during the year," Richman continued. "I have confidence that our Company is resilient and well positioned to execute our commercial middle market strategy."
Fourth Quarter and Full Year Results
- Non-performing assets were relatively flat at $454.6 million at year end. Non-performing loans continued to trend modestly lower, and increased other real estate owned (OREO) disposition activity during the fourth quarter kept OREO levels relatively unchanged. The allowance for loan losses was $222.8 million at year end, or 2.44 percent of total loans.
- Net revenue increased to $136.1 million in the fourth quarter. Full year net revenue growth was 24 percent. Operating profit was consistent with the third quarter, and up 30 percent for the full year. Net interest margin was 3.36 percent for the fourth quarter, compared to 3.31 percent in the third quarter.
- Total loans of $9.1 billion at year-end remained consistent with 2009 year-end levels. There was $122.2 million of net loan growth in the fourth quarter. Total deposits of $10.5 billion were flat from third quarter 2010 and increased from $9.9 billion at year-end 2009.
Credit Quality
Credit quality trends stabilized in 2010, but continued to be impacted by the weak commercial real estate sector. There were signs of stabilizing asset values and improving liquidity in the latter half of the year. Our efforts to resolve problem assets led to $40.1 million in OREO dispositions in the fourth quarter. The commercial and industrial sector strengthened and is growing as a percentage of the Company's total loan mix. Quarterly asset quality metrics may fluctuate due to specific account movement and timing of dispositions.
The fourth quarter 2010 provision for loan losses was $34.5 million, excluding covered loan provision, down from $69.5 million in the fourth quarter 2009 and $40.0 million in the third quarter 2010. For full year 2010, the provision for loan losses was $192.0 million, excluding covered loan provision, down from $198.9 million in the prior year. Provision expense reduction from fourth quarter levels will be largely dependent on continued stabilization of underlying commercial real estate asset values, marketplace liquidity, and slowing non-performing loan inflows. The allowance for loan losses as a percentage of total loans was 2.44 percent at December 31, 2010, compared to 2.45 percent at December 31, 2009, and 2.48 percent at September 30, 2010. The allowance for loan losses as a percentage of non-performing loans was 61 percent at year-end 2010, compared to 56 percent at year-end 2009, and 60 percent at September 30, 2010.
Net charge-offs were $35.1 million for the quarter ended December 31, 2010, compared to $40.6 million for the fourth quarter 2009 and $49.1 million for the third quarter 2010. For the year ended December 31, 2010, net charge-offs were $190.9 million, compared to $89.9 million in the prior year.
Non-performing assets totaled $454.6 million at December 31, 2010, compared to $436.9 million at December 31, 2009, and $462.1 million at September 30, 2010. Non-performing assets to total assets were 3.65 percent at December 31, 2010, compared to 3.63 percent at December 31, 2009, and 3.67 percent at September 30, 2010.
Restructured loans accruing interest were $87.6 million at the end of fourth quarter 2010, compared to $53.4 million at the end of third quarter 2010. The Company utilizes loan restructuring to maximize economic recovery.
Credit quality results exclude $397.2 million in covered assets as of the end of the fourth quarter, referring to certain assets acquired through an FDIC-assisted transaction that are subject to a loss-sharing agreement, compared to $502.0 million in the fourth quarter 2009 and $419.9 million in the third quarter 2010.
Operating Performance
The Company reported 24 percent net revenue growth and a 30 percent increase in operating profit for the full year. Overall performance was driven by margin expansion on a year-over-year basis resulting from reduction in cost of funds and a favorable shift in the deposit mix, as well as cross-sell opportunities.
Net revenue was $136.1 million in the fourth quarter 2010, up from $114.8 million in the fourth quarter 2009 and $123.2 million in the third quarter 2010. Net revenue increased to $497.8 million for full year 2010, compared to $400.1 million in 2009. Operating profit was $53.9 million in the fourth quarter 2010, compared to $46.3 million in the fourth quarter 2009 and $55.1 million in the third quarter 2010. For the full year, operating profit increased to $198.2 million, compared to $152.7 million in 2009.
Net interest income was relatively flat at $100.3 million in the fourth quarter 2010, compared to $99.6 million for the fourth quarter 2009 and $99.0 million in the third quarter 2010. For the full year 2010, net interest income increased 23 percent to $401.0 million, from $325.0 million for full year 2009.
Net interest margin was 3.36 percent for the fourth quarter 2010, compared to 3.48 percent in the fourth quarter 2009 and 3.31 percent for the third quarter 2010. Excluding covered asset accretion, the net interest margin was 3.31 percent for the fourth quarter 2010, up from 3.13 percent in the fourth quarter 2009 and 3.28 percent in the third quarter 2010. Net interest margin continued to benefit in the fourth quarter from deposit repricing. With the continued low rate environment, further opportunities to reduce cost of funds will likely be limited in 2011.
Non-interest income was $34.9 million in the fourth quarter 2010, compared to $14.3 million in the fourth quarter 2009 and $23.4 million in the third quarter 2010. The fourth quarter 2010 results included a net securities gain of $9.3 million, compared to a $3.0 million net securities gain in the third quarter 2010. For the 12 months ended December 31, 2010, non-interest income increased to $93.2 million, up from $71.5 million for the year ended December 31, 2009.
Non-interest income growth reflects continued success in expanding client relationships. Treasury management remained strong, increasing 5 percent from third quarter to $4.6 million and increasing 67 percent over the full year. Capital markets revenue, excluding the credit valuation adjustment, increased 26 percent in the fourth quarter, and decreased 3 percent year-over-year. Wealth management fee income also increased, up 6 percent from the third quarter to $4.6 million, and up 17 percent in 2010 over the prior year. New loan originations drove growth in loan and letter of credit fees.
Mortgage banking income rose 25 percent for the quarter and 14 percent for the full year, consistent with the broader industry trend of increased refinancing based on the low interest rate environment.
Expenses
The Company continued to employ disciplined expense management throughout 2010, although total expenses were impacted by higher workout-related credit costs and increased salary expense primarily due to incentive compensation accruals.
Non-interest expense was $82.1 million in the fourth quarter 2010, compared to $68.5 million in the fourth quarter 2009 and $68.1 million in the third quarter 2010. Non-interest expense for the full year 2010 was $299.6 million, compared to $247.4 million for the full year 2009.
Fourth quarter 2010 non-interest expense included an increase in credit and collection costs, primarily related to foreclosed property expense. Credit-related expense levels were higher in the fourth quarter than previous periods, reflecting the uneven nature of workout activity. Salary and benefit expense was higher in the fourth quarter, impacted by an increase in commission-based compensation and the adjustment during the third quarter to the annual incentive compensation accrual, which lowered third-quarter expense.
The efficiency ratio was 60.4 percent in the fourth quarter 2010, compared to 59.7 percent in the fourth quarter 2009 and 55.3 percent in the third quarter 2010.
Balance Sheet
Net loan growth was $122.2 million in the fourth quarter. Efforts to strategically reshape the portfolio resulted in a 6 percent, or $287.7 million, increase in commercial and industrial loans in the fourth quarter. Commercial real estate and construction decreased by 5 percent in the fourth quarter. Over the course of the year, commercial and industrial loans increased 14 percent and commercial real estate and construction loans decreased by 12 percent.
Total assets were $12.5 billion at December 31, 2010, compared to $12.0 billion at December 31, 2009, and $12.6 billion at September 30, 2010.
Total loans were $9.1 billion at year-end 2010, compared to $9.0 billion at year-end 2009 and $9.0 billion at September 30, 2010. Commercial and industrial loans accounted for 54 percent of total loans, while commercial real estate and construction loans were 37 percent at year-end 2010.
Total deposits were $10.5 billion at December 31, 2010, compared to $9.9 billion at December 31, 2009, and $10.5 billion at September 30, 2010. Client deposits, representing 94 percent of total deposits, were $9.9 billion at the end of the fourth quarter 2010, compared to $9.3 billion at the end of fourth quarter 2009 and $10.1 billion at September 30, 2010. Client deposits at December 31, 2010, included $2.3 billion in non-interest bearing deposits. Brokered deposits (excluding $852.5 million in client CDARS® deposits) were 6 percent of total deposits at year-end 2010, compared to 6 percent a year ago and 4 percent at the end of the third quarter 2010.
The Company's investment securities portfolio was $1.9 billion at December 31, 2010, compared to $1.6 billion at December 31, 2009, and $2.1 billion at September 30, 2010. Net unrealized gains were $32.0 million, compared to $44.8 million at the end of the fourth quarter 2009 and $78.7 million at the end of the third quarter 2010. The change in net unrealized gains was primarily due to an increase in interest rates, as well as sales of securities in the fourth quarter. The securities portfolio is primarily composed of U.S. government agency backed mortgage pools, agency collateralized mortgage obligations, and investment grade municipal bonds.
Federal funds sold and other short-term investments, primarily cash on deposit with the federal reserve, were $541.3 million at the end of the fourth quarter 2010, up from $218.9 million at the end of fourth quarter 2009 and $532.6 million in the third quarter 2010.
Capital
As of December 31, 2010, the total risk-based capital ratio was 14.18 percent, the Tier 1 risk-based capital ratio was 12.06 percent, and the leverage ratio was 10.78 percent. Tier 1 common capital ratio was 7.69 percent and tangible common equity ratio was 7.10 percent at the end of the fourth quarter 2010.
Quarterly Conference Call and Webcast Presentation
PrivateBancorp will host a conference call on Tuesday, January 25, 2011, 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 #31405006. A live webcast of the call can be accessed on the Company website at www.theprivatebank.com by visiting the Investor Relations tab under the About Us section. A rebroadcast will be available beginning approximately two hours after the call until midnight on February 1, 2011, by calling (800) 642-1687 (U.S. and Canada) or (706) 645-9291 (International) and entering passcode #31405006.
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, 2010, the Company had 34 offices in 10 states and $12.5 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 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, 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 asset quality that could result in charge-offs greater than the Company has anticipated in its allowance for loan losses; the occurrence of unexpected events that adversely impact one or more large credits; further declines in commercial real estate values in the Company's market areas, particularly in Chicago; significant increases in workout-related credit costs or slower than anticipated dispositions of other real estate owned (OREO) which may result in increased losses or carrying costs; slower than anticipated economic recovery or further deterioration in economic conditions; weakness in the commercial and industrial sector; unanticipated withdrawals of significant client deposits; unavailability in the future of sufficient or cost-effective sources of liquidity or funding; difficulty in raising capital on acceptable terms when necessary or required; loss of key personnel or an inability to recruit or attract appropriate talent; potential for significant charges if our deferred tax or goodwill assets suffer impairment; 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 legislation and the Company's ability to maintain regulatory capital at appropriate levels; 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 the Company's data processing or other information systems. These risks and uncertainties should be considered in evaluating forward-looking statements and undue reliance should not be placed on our forward-looking 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.
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 |
||||||||
Unaudited |
||||||||
(Amounts in thousands except per share data) |
||||||||
Three Months Ended |
Twelve Months Ended |
|||||||
December 31, |
December 31, |
|||||||
2010 |
2009 |
2010 |
2009 |
|||||
Interest Income |
||||||||
Loans, including fees |
$105,375 |
$115,140 |
$434,884 |
$411,830 |
||||
Federal funds sold and other short-term investments |
366 |
340 |
1,950 |
1,112 |
||||
Securities: |
||||||||
Taxable |
15,453 |
15,672 |
64,316 |
58,663 |
||||
Exempt from Federal income taxes |
1,644 |
1,672 |
6,775 |
7,107 |
||||
Total interest income |
122,838 |
132,824 |
507,925 |
478,712 |
||||
Interest Expense |
||||||||
Interest-bearing demand deposits |
702 |
848 |
3,148 |
2,646 |
||||
Savings deposits and money market accounts |
7,437 |
9,022 |
34,431 |
29,635 |
||||
Brokered and time deposits |
7,367 |
13,959 |
36,458 |
79,335 |
||||
Short-term borrowings |
962 |
1,613 |
5,088 |
8,094 |
||||
Long-term debt |
6,023 |
7,820 |
27,843 |
34,018 |
||||
Total interest expense |
22,491 |
33,262 |
106,968 |
153,728 |
||||
Net interest income |
100,347 |
99,562 |
400,957 |
324,984 |
||||
Provision for loan and covered loan losses |
35,166 |
70,077 |
194,541 |
199,419 |
||||
Net interest income after provision for |
||||||||
loan and covered loan losses |
65,181 |
29,485 |
206,416 |
125,565 |
||||
Non-interest Income |
||||||||
Wealth management |
4,574 |
4,081 |
18,140 |
15,459 |
||||
Mortgage banking |
3,479 |
2,243 |
10,187 |
8,930 |
||||
Capital markets products |
6,791 |
2,409 |
14,286 |
17,150 |
||||
Treasury management |
4,625 |
3,366 |
16,920 |
10,148 |
||||
Bank owned life insurance |
459 |
442 |
1,742 |
1,728 |
||||
Other income, service charges, and fees |
5,628 |
1,918 |
19,789 |
11,659 |
||||
Net securities gains (losses) |
9,309 |
(149) |
12,182 |
7,381 |
||||
Early extinguishment of debt |
- |
- |
- |
(985) |
||||
Total non-interest income |
34,865 |
14,310 |
93,246 |
71,470 |
||||
Non-interest Expense |
||||||||
Salaries and employee benefits |
38,577 |
31,020 |
149,863 |
123,653 |
||||
Net occupancy expense |
7,385 |
7,039 |
29,935 |
26,170 |
||||
Technology and related costs |
2,447 |
3,503 |
10,224 |
10,599 |
||||
Marketing |
1,997 |
3,568 |
8,501 |
9,843 |
||||
Professional services |
3,020 |
5,562 |
12,931 |
16,327 |
||||
Investment manager expenses |
608 |
576 |
2,467 |
2,322 |
||||
Net foreclosed property expenses |
7,028 |
1,810 |
15,192 |
5,675 |
||||
Supplies and printing |
305 |
436 |
1,209 |
1,465 |
||||
Postage, telephone, and delivery |
1,049 |
855 |
3,659 |
3,060 |
||||
Insurance |
8,348 |
5,015 |
26,534 |
22,607 |
||||
Amortization of intangibles |
402 |
536 |
1,645 |
1,737 |
||||
Loan and collection expense |
4,029 |
4,526 |
14,623 |
9,617 |
||||
Other expenses |
6,953 |
4,082 |
22,815 |
14,340 |
||||
Total non-interest expense |
82,148 |
68,528 |
299,598 |
247,415 |
||||
Income (loss) before income taxes |
17,898 |
(24,733) |
64 |
(50,380) |
||||
Income tax provision (benefit) |
5,919 |
(9,556) |
(1,737) |
(20,564) |
||||
Net income (loss) |
11,979 |
(15,177) |
1,801 |
(29,816) |
||||
Net income (loss) attributable to noncontrolling interests |
67 |
64 |
284 |
247 |
||||
Net income (loss) attributable to controlling interests |
11,912 |
(15,241) |
1,517 |
(30,063) |
||||
Preferred stock dividends and discount accretion |
3,409 |
3,389 |
13,607 |
12,443 |
||||
Net income (loss) available to common stockholders |
$8,503 |
($18,630) |
($12,090) |
($42,506) |
||||
Per Common Share Data |
||||||||
Basic |
$0.12 |
($0.30) |
($0.17) |
($0.95) |
||||
Diluted |
$0.12 |
($0.30) |
($0.17) |
($0.95) |
||||
Common dividends per share |
$0.01 |
$0.01 |
$0.04 |
$0.04 |
||||
Weighted-average shares outstanding |
70,098 |
61,608 |
70,024 |
44,516 |
||||
Weighted-average diluted shares outstanding |
70,135 |
61,608 |
70,024 |
44,516 |
||||
Note: Due to the net loss available to common stockholders reported for the twelve months ended December 31, 2010 and the three and twelve months ended December 31, 2009, all potentially dilutive common stock equivalents were excluded from the diluted net loss per share computation as their inclusion would have been antidilutive. |
||||||||
Quarterly Consolidated Income Statements |
||||||||||
Unaudited |
||||||||||
(Amounts in thousands except per share data) |
||||||||||
4Q10 |
3Q10 |
2Q10 |
1Q10 |
4Q09 |
||||||
Interest Income |
||||||||||
Loans, including fees |
$105,375 |
$105,608 |
$112,839 |
$111,062 |
$115,140 |
|||||
Federal funds sold and other short-term investments |
366 |
376 |
664 |
544 |
340 |
|||||
Securities: |
||||||||||
Taxable |
15,453 |
16,996 |
16,417 |
15,450 |
15,672 |
|||||
Exempt from Federal income taxes |
1,644 |
1,661 |
1,752 |
1,718 |
1,672 |
|||||
Total interest income |
122,838 |
124,641 |
131,672 |
128,774 |
132,824 |
|||||
Interest Expense |
||||||||||
Interest-bearing demand deposits |
702 |
675 |
805 |
966 |
848 |
|||||
Savings deposits and money market accounts |
7,437 |
8,512 |
9,368 |
9,114 |
9,022 |
|||||
Brokered and time deposits |
7,367 |
8,130 |
9,537 |
11,424 |
13,959 |
|||||
Short-term borrowings |
962 |
1,297 |
1,383 |
1,446 |
1,613 |
|||||
Long-term debt |
6,023 |
7,068 |
7,247 |
7,505 |
7,820 |
|||||
Total interest expense |
22,491 |
25,682 |
28,340 |
30,455 |
33,262 |
|||||
Net interest income |
100,347 |
98,959 |
103,332 |
98,319 |
99,562 |
|||||
Provision for loan and covered loan losses |
35,166 |
41,435 |
45,392 |
72,548 |
70,077 |
|||||
Net interest income after provision for |
||||||||||
loan and covered loan losses |
65,181 |
57,524 |
57,940 |
25,771 |
29,485 |
|||||
Non-interest Income |
||||||||||
Wealth management |
4,574 |
4,306 |
4,836 |
4,424 |
4,081 |
|||||
Mortgage banking |
3,479 |
2,790 |
1,797 |
2,121 |
2,243 |
|||||
Capital markets products |
6,791 |
3,104 |
4,113 |
278 |
2,409 |
|||||
Treasury management |
4,625 |
4,406 |
4,281 |
3,608 |
3,366 |
|||||
Bank owned life insurance |
459 |
428 |
420 |
435 |
442 |
|||||
Other income, service charges, and fees |
5,628 |
5,297 |
4,691 |
4,173 |
1,918 |
|||||
Net securities gains (losses) |
9,309 |
3,029 |
(185) |
29 |
(149) |
|||||
Total non-interest income |
34,865 |
23,360 |
19,953 |
15,068 |
14,310 |
|||||
Non-interest Expense |
||||||||||
Salaries and employee benefits |
38,577 |
34,412 |
37,485 |
39,389 |
31,020 |
|||||
Net occupancy expense |
7,385 |
7,508 |
7,747 |
7,295 |
7,039 |
|||||
Technology and related costs |
2,447 |
2,310 |
2,424 |
3,043 |
3,503 |
|||||
Marketing |
1,997 |
2,039 |
2,363 |
2,102 |
3,568 |
|||||
Professional services |
3,020 |
2,708 |
3,000 |
4,203 |
5,562 |
|||||
Investment manager expenses |
608 |
581 |
643 |
635 |
576 |
|||||
Net foreclosed property expenses |
7,028 |
3,075 |
3,686 |
1,403 |
1,810 |
|||||
Supplies and printing |
305 |
292 |
322 |
290 |
436 |
|||||
Postage, telephone, and delivery |
1,049 |
779 |
866 |
965 |
855 |
|||||
Insurance |
8,348 |
7,113 |
5,654 |
5,419 |
5,015 |
|||||
Amortization of intangibles |
402 |
413 |
415 |
415 |
536 |
|||||
Loan and collection expense |
4,029 |
3,405 |
4,610 |
2,579 |
4,526 |
|||||
Other expenses |
6,953 |
3,442 |
6,787 |
5,633 |
4,082 |
|||||
Total non-interest expense |
82,148 |
68,077 |
76,002 |
73,371 |
68,528 |
|||||
Income (loss) before income taxes |
17,898 |
12,807 |
1,891 |
(32,532) |
(24,733) |
|||||
Income tax provision (benefit) |
5,919 |
4,786 |
(766) |
(11,676) |
(9,556) |
|||||
Net income (loss) |
11,979 |
8,021 |
2,657 |
(20,856) |
(15,177) |
|||||
Net income (loss) attributable to noncontrolling interests |
67 |
71 |
76 |
70 |
64 |
|||||
Net income (loss) attributable to controlling interests |
11,912 |
7,950 |
2,581 |
(20,926) |
(15,241) |
|||||
Preferred stock dividends and discount accretion |
3,409 |
3,405 |
3,399 |
3,394 |
3,389 |
|||||
Net income (loss) available to common stockholders |
$8,503 |
$4,545 |
($818) |
($24,320) |
($18,630) |
|||||
Per Common Share Data |
||||||||||
Basic |
$0.12 |
$0.06 |
($0.01) |
($0.35) |
($0.30) |
|||||
Diluted |
$0.12 |
$0.06 |
($0.01) |
($0.35) |
($0.30) |
|||||
Common dividends per share |
$0.01 |
$0.01 |
$0.01 |
$0.01 |
$0.01 |
|||||
Weighted-average shares outstanding |
70,098 |
70,067 |
69,995 |
69,933 |
61,608 |
|||||
Weighted-average diluted shares outstanding |
70,135 |
70,097 |
69,995 |
69,933 |
61,608 |
|||||
Note: Due to the net loss available to common stockholders reported for the first and second quarters 2010 and fourth quarter 2009, all potentially dilutive common stock equivalents were excluded from the diluted net loss per share computation as their inclusion would have been antidilutive. |
||||||||||
Consolidated Balance Sheets |
||||||||||
(Dollars in thousands) |
||||||||||
12/31/10 |
09/30/10 |
06/30/10 |
03/31/10 |
12/31/09 |
||||||
unaudited |
unaudited |
unaudited |
unaudited |
audited |
||||||
Assets |
||||||||||
Cash and due from banks |
$112,772 |
$144,298 |
$111,997 |
$107,618 |
$320,160 |
|||||
Fed funds sold and other short-term investments |
541,316 |
532,637 |
769,803 |
1,146,814 |
218,935 |
|||||
Loans held for sale |
30,758 |
44,271 |
20,762 |
16,224 |
28,363 |
|||||
Securities available-for-sale, at fair value |
1,881,786 |
2,033,527 |
2,029,962 |
1,769,138 |
1,569,541 |
|||||
Non-marketable equity investments |
23,537 |
25,587 |
33,825 |
29,475 |
29,413 |
|||||
Loans - excluding covered assets, net of unearned fees |
9,114,357 |
8,992,129 |
8,851,439 |
8,898,228 |
9,046,625 |
|||||
Allowance for loan losses |
(222,821) |
(223,392) |
(232,411) |
(236,851) |
(221,688) |
|||||
Loans, net of allowance for loan losses and unearned fees |
8,891,536 |
8,768,737 |
8,619,028 |
8,661,377 |
8,824,937 |
|||||
Covered assets |
397,210 |
419,865 |
434,828 |
468,939 |
502,034 |
|||||
Allowance for covered loan losses |
(15,334) |
(12,174) |
(5,176) |
(5,176) |
(2,764) |
|||||
Covered assets, net of allowance for covered loan losses |
381,876 |
407,691 |
429,652 |
463,763 |
499,270 |
|||||
Other real estate owned |
88,728 |
90,944 |
68,693 |
60,755 |
41,497 |
|||||
Premises, furniture, and equipment, net |
40,975 |
42,347 |
40,599 |
41,350 |
41,344 |
|||||
Accrued interest receivable |
33,854 |
34,697 |
35,278 |
34,766 |
35,562 |
|||||
Investment in bank owned life insurance |
49,408 |
48,950 |
48,521 |
48,101 |
47,666 |
|||||
Goodwill |
94,621 |
94,633 |
94,646 |
94,658 |
94,671 |
|||||
Other intangible assets |
16,840 |
17,242 |
17,655 |
18,070 |
18,485 |
|||||
Derivative assets |
100,250 |
128,891 |
113,493 |
85,152 |
71,540 |
|||||
Other assets |
177,364 |
169,513 |
177,126 |
202,975 |
191,200 |
|||||
Total assets |
$12,465,621 |
$12,583,965 |
$12,611,040 |
$12,780,236 |
$12,032,584 |
|||||
Liabilities |
||||||||||
Demand deposits: |
||||||||||
Non-interest-bearing |
$2,253,661 |
$2,173,419 |
$2,090,222 |
$1,886,427 |
$1,840,900 |
|||||
Interest-bearing |
616,761 |
614,049 |
738,631 |
714,700 |
752,728 |
|||||
Savings deposits and money market accounts |
4,821,823 |
5,039,970 |
5,066,653 |
4,691,170 |
4,053,975 |
|||||
Brokered deposits |
1,450,827 |
1,241,366 |
1,236,589 |
1,831,306 |
1,566,139 |
|||||
Time deposits |
1,392,357 |
1,461,668 |
1,437,204 |
1,498,322 |
1,678,172 |
|||||
Total deposits |
10,535,429 |
10,530,472 |
10,569,299 |
10,621,925 |
9,891,914 |
|||||
Short-term borrowings |
118,561 |
179,651 |
164,069 |
241,293 |
214,975 |
|||||
Long-term debt |
414,793 |
439,566 |
473,720 |
498,874 |
533,023 |
|||||
Accrued interest payable |
5,968 |
7,603 |
7,727 |
10,357 |
9,673 |
|||||
Derivative liabilities |
102,018 |
132,594 |
116,599 |
86,873 |
71,958 |
|||||
Other liabilities |
60,942 |
48,940 |
43,534 |
100,687 |
75,425 |
|||||
Total liabilities |
11,237,711 |
11,338,826 |
11,374,948 |
11,560,009 |
10,796,968 |
|||||
Equity |
||||||||||
Preferred stock |
238,903 |
238,542 |
238,185 |
237,833 |
237,487 |
|||||
Common stock |
70,972 |
70,657 |
70,630 |
70,500 |
70,444 |
|||||
Treasury stock |
(20,054) |
(19,023) |
(19,003) |
(18,595) |
(18,489) |
|||||
Additional paid-in capital |
954,977 |
950,721 |
946,981 |
944,095 |
940,338 |
|||||
Retained earnings |
(36,999) |
(44,784) |
(48,638) |
(47,112) |
(22,093) |
|||||
Accumulated other comprehensive income, net of tax |
20,078 |
48,776 |
47,758 |
33,403 |
27,896 |
|||||
Total stockholders' equity |
1,227,877 |
1,244,889 |
1,235,913 |
1,220,124 |
1,235,583 |
|||||
Noncontrolling interests |
33 |
250 |
179 |
103 |
33 |
|||||
Total equity |
1,227,910 |
1,245,139 |
1,236,092 |
1,220,227 |
1,235,616 |
|||||
Total liabilities and equity |
$12,465,621 |
$12,583,965 |
$12,611,040 |
$12,780,236 |
$12,032,584 |
|||||
Note: Certain reclassifications have been made to prior period financial statements to place them on a basis comparable with the current period financial statements. |
||||||||||
Selected Financial Data |
||||||||||||
Unaudited |
||||||||||||
(Amounts in thousands except per share data) |
||||||||||||
4Q10 |
3Q10 |
2Q10 |
1Q10 |
4Q09 |
||||||||
Selected Statement of Income Data: |
||||||||||||
Net interest income |
$100,347 |
$98,959 |
$103,332 |
$98,319 |
$99,562 |
|||||||
Net revenue (1) (2) |
$136,088 |
$123,210 |
$124,209 |
$114,273 |
$114,802 |
|||||||
Operating profit (1) (2) |
$53,940 |
$55,133 |
$48,207 |
$40,902 |
$46,274 |
|||||||
Income (loss) before taxes |
$17,898 |
$12,807 |
$1,891 |
($32,532) |
($24,733) |
|||||||
Net income (loss) available to common stockholders |
$8,503 |
$4,545 |
($818) |
($24,320) |
($18,630) |
|||||||
Per Common Share Data: |
||||||||||||
Basic earnings (loss) per share |
$0.12 |
$0.06 |
($0.01) |
($0.35) |
($0.30) |
|||||||
Diluted earnings (loss) per share (3) |
$0.12 |
$0.06 |
($0.01) |
($0.35) |
($0.30) |
|||||||
Dividends |
$0.01 |
$0.01 |
$0.01 |
$0.01 |
$0.01 |
|||||||
Book value (period end) (1) |
$13.87 |
$14.10 |
$13.98 |
$13.77 |
$13.99 |
|||||||
Tangible book value (period end) (1) (2) |
$12.30 |
$12.53 |
$12.40 |
$12.19 |
$12.41 |
|||||||
Market value (close) |
$14.38 |
$11.39 |
$11.08 |
$13.70 |
$8.97 |
|||||||
Book value multiple |
1.04 |
x |
0.81 |
x |
0.79 |
x |
0.99 |
x |
0.64 |
x |
||
Share Data: |
||||||||||||
Weighted average common shares outstanding |
70,098 |
70,067 |
69,995 |
69,933 |
61,608 |
|||||||
Diluted average common shares outstanding (3) |
70,135 |
70,097 |
69,995 |
69,933 |
61,608 |
|||||||
Common shares issued (at period end) |
71,979 |
71,964 |
71,978 |
71,877 |
71,869 |
|||||||
Common shares outstanding (at period end) |
71,327 |
71,386 |
71,403 |
71,333 |
71,332 |
|||||||
Performance Ratios: |
||||||||||||
Return on average assets |
0.38% |
0.25% |
0.08% |
-0.68% |
-0.50% |
|||||||
Return on average common equity |
3.31% |
1.77% |
-0.33% |
-9.86% |
-7.96% |
|||||||
Net interest margin - tax-equivalent (1) (2) |
3.36% |
3.31% |
3.41% |
3.36% |
3.48% |
|||||||
Covered asset accretion contribution to net interest margin |
0.05% |
0.03% |
0.28% |
0.25% |
0.35% |
|||||||
Net interest margin, excluding impact of covered asset accretion |
3.31% |
3.28% |
3.13% |
3.11% |
3.13% |
|||||||
Fee revenue as a percent of total revenue (1) |
20.30% |
17.04% |
16.31% |
13.27% |
12.68% |
|||||||
Non-interest income to average assets |
1.11% |
0.74% |
0.63% |
0.49% |
0.47% |
|||||||
Non-interest expense to average assets |
2.61% |
2.16% |
2.39% |
2.39% |
2.26% |
|||||||
Net overhead ratio (1) |
1.50% |
1.42% |
1.76% |
1.90% |
1.79% |
|||||||
Efficiency ratio (1) (2) |
60.36% |
55.25% |
61.19% |
64.21% |
59.69% |
|||||||
Selected Information: |
||||||||||||
Assets under management and administration (1) |
$4,271,602 |
$4,023,821 |
$3,746,934 |
$3,983,066 |
$3,983,623 |
|||||||
Credit valuation adjustment (1) |
$1,826 |
($830) |
($1,271) |
($1,333) |
$796 |
|||||||
Balance Sheet Ratios: |
||||||||||||
Loans to Deposits (period end) (4) |
86.51% |
85.39% |
83.75% |
83.77% |
91.45% |
|||||||
Average interest-earning assets to average interest-bearing liabilities |
134.76% |
133.96% |
130.58% |
129.96% |
127.44% |
|||||||
Capital Ratios (period end): |
||||||||||||
Total risk-based (1) |
14.18% |
14.40% |
14.83% |
14.91% |
14.69% |
|||||||
Tier 1 risk-based (1) |
12.06% |
12.25% |
12.43% |
12.49% |
12.32% |
|||||||
Leverage (1) |
10.78% |
10.71% |
10.39% |
10.57% |
11.17% |
|||||||
Tier 1 common capital (1) (2) |
7.69% |
7.79% |
7.86% |
7.86% |
7.86% |
|||||||
Tangible common equity to tangible assets (1) (2) |
7.10% |
7.17% |
7.09% |
6.87% |
7.42% |
|||||||
Total equity to total assets |
9.85% |
9.89% |
9.80% |
9.55% |
10.27% |
|||||||
(1) Refer to Glossary of Terms for definition. |
||||||||||||
(2) This is a non-GAAP measure, refer to Non-GAAP Measures for a reconciliation from non-GAAP to GAAP. |
||||||||||||
(3) For the first and second quarters 2010 and fourth quarters 2009, diluted shares are equal to basic shares due to the net loss. The calculation of diluted earnings per share for those periods results in anti-dilution. |
||||||||||||
(4) Excludes covered assets. Refer to Glossary of Terms for definition. |
||||||||||||
SOURCE PrivateBancorp, Inc.
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