PrivateBancorp Reports Second Quarter Results
Net revenue and operating profit increase; Credit trends moderate
CHICAGO, July 27 /PRNewswire-FirstCall/ -- PrivateBancorp, Inc. (Nasdaq: PVTB) today reported a net loss of $818,000, or $0.01 per diluted share, for the second quarter 2010, compared to net income of $2.5 million, or $0.06 per diluted share, for the second quarter 2009. For the six months ended June 30, 2010, the Company had a net loss of $25.1 million, or $0.36 per diluted share, compared to net income of $7.3 million, or $0.20 per diluted share, for the six months ended June 30, 2009.
"We are encouraged by our net revenue and operating profit growth, which reflects the underlying strength of our core business," said Larry D. Richman, President and Chief Executive Officer, PrivateBancorp. "Our actions to gain market share and deepen client relationships have led to our favorable funding mix and increased fee income. While credit-related costs continue to weigh on bottom line results, asset quality trends for the quarter have moderated and were consistent with our expectations. We have built a foundation to serve commercial middle market clients and remain well positioned to continue to grow and capitalize on opportunities to drive profitability."
Second Quarter Results
- Non-performing assets decreased to $438.9 million at quarter end, compared to $442.0 million at March 31, 2010. Provision for loan losses for the second quarter 2010 decreased to $45.4 million and net charge-offs decreased to $49.8 million, resulting in an allowance for loan losses of $232.4 million or 2.63 percent of total loans.
- Net revenue increased 9 percent quarter-over-quarter to $124.2 million and operating profit increased 18 percent to $48.2 million. Net interest income and net interest margin increased to $103.3 million and 3.41 percent, respectively.
- Deposits totaled $10.6 billion with a 4 percent increase in client deposits from the end of first quarter, while total loans were relatively flat at $8.9 billion.
- Solid capital position reflected by total risk-based capital ratio of 14.97 percent, Tier 1 capital ratio of 12.56 percent, Tier 1 common capital ratio of 7.94 percent, and tangible common equity ratio of 7.09 percent.
Credit Quality
The Company is closely managing the credit portfolio and successfully completed a number of transactions to reduce non-performing assets during the quarter. Provision expenses were down 37 percent, charge-offs decreased and the allowance for loan losses as a percentage of total loans was consistent with first quarter. Management anticipates non-performing assets in the third quarter will remain generally in line with current levels. While ongoing workout efforts will, over time, translate into lower non-performing assets, the ability to achieve a meaningful reduction in non-performing assets depends on the broader economic recovery and increased commercial real estate activity.
The second quarter 2010 provision for loan losses was $45.4 million, up from $21.5 million in the second quarter 2009 and down from $72.1 million in the first quarter 2010. Provision expense decreased in the second quarter primarily due to a moderating level of non-performing loans and a slowing pace of valuation declines on impaired loans. The allowance for loan losses as a percentage of total loans was 2.63 percent at June 30, 2010, compared to 1.60 percent at June 30, 2009, and 2.66 percent at March 31, 2010. The allowance for loan losses as a percentage of non-performing loans was 63 percent at the end of second quarter 2010, compared to 76 percent at June 30, 2009, and 62 percent at March 31, 2010.
Net charge-offs were $49.8 million for the quarter ended June 30, 2010, up from $8.4 million for the second quarter 2009 and down from $56.9 million for the first quarter 2010. Approximately $34.3 million of second quarter 2010 net charge-offs were related to commercial real estate and construction loans.
Non-performing assets totaled $438.9 million at June 30, 2010, compared to $212.8 million at June 30, 2009, and $442.0 million at March 31, 2010, as workout activities offset the inflow of non-performing assets. Consistent with first quarter, approximately 68 percent of non-performing loans at June 30, 2010, were commercial real estate and construction loans. Non-performing assets to total assets were 3.48 percent at June 30, 2010, compared to 1.94 percent at June 30, 2009, and 3.46 percent at March 31, 2010.
Credit quality results exclude $434.8 million in covered assets as of the end of the second quarter, referring to certain assets acquired through an FDIC-assisted transaction that are subject to a loss-sharing agreement.
Operating Performance
The Company's focus on developing strong client relationships led to a 9 percent increase in net revenue and an 18 percent increase in operating profit. The results reflected a favorable shift in the deposit mix, margin expansion, and efforts to capitalize on cross-sell opportunities to drive fee income.
Net revenue was $124.2 million in the second quarter 2010, up from $95.8 million in the second quarter 2009 and $114.3 million in the first quarter 2010. Operating profit (the sum of net interest income and non-interest income less non-interest expense) was $48.2 million in the second quarter 2010, an increase from $31.8 million in the second quarter 2009 and $40.9 million in the first quarter 2010.
Net interest income was $103.3 million in the second quarter 2010, compared to $74.1 million for the second quarter 2009 and $98.3 million in the first quarter 2010. Net interest income grew due to a reduction in cost of funds related to pricing initiatives, the change in funding mix, accretion from covered assets, and an increase in average earning assets.
Net interest margin (on a tax equivalent basis) was 3.41 percent for the second quarter 2010, compared to 2.99 percent in the second quarter 2009 and 3.36 percent for the first quarter 2010. Excluding covered asset accretion in the first and second quarters, the net interest margin remained relatively flat on a comparative basis.
Non-interest income was $20.0 million in the second quarter 2010, compared to $20.7 million in the second quarter 2009 and $15.1 million in the first quarter 2010. Treasury management income increased to $4.3 million in the second quarter 2010, up from $2.1 million in the second quarter 2009 and $3.6 million in the first quarter 2010. Capital markets income in the second quarter 2010 was $4.1 million, compared to $3.8 million in the second quarter 2009 and $278,000 in the first quarter 2010. While there was strong growth in the second quarter, demand and volume in the capital markets business fluctuate in relation to loan originations and the view of the interest rate environment. Mortgage banking income was $1.8 million in the second quarter 2010, compared to $2.7 million in the second quarter 2009 and $2.1 million in the first quarter 2010. Other income, service charges and fees were $4.7 million in the second quarter 2010, compared to $2.1 million in the second quarter 2009 and $4.2 million in the first quarter 2010.
Wealth management fee income was $4.8 million in the second quarter 2010, up from $3.5 million in the second quarter 2009 and $4.4 million in the first quarter 2010. Assets under management and administration at June 30, 2010, were $3.7 billion, compared to $3.2 billion at June 30, 2009, and $4.0 billion at March 31, 2010.
Expenses
Non-interest expense was $76.0 million in the second quarter 2010, compared to $64.0 million in the second quarter 2009 and $73.4 million in the first quarter 2010. Second quarter 2010 non-interest expense was impacted by a $4.7 million increase in credit costs. The increase was partially offset by a $1.9 million reduction in employee expenses and a $1.2 million decrease in professional services from the first quarter. The efficiency ratio was 61.2 percent in the second quarter 2010, compared to 66.8 percent in the second quarter 2009 and 64.2 percent in the first quarter 2010.
Balance Sheet
Loan demand was modest in the second quarter and line utilization decreased. Loan portfolio activity included new client borrowings of approximately $270 million and draws on existing lines of approximately $390 million. However, total loans at the end of the second quarter were down, including payoffs and paydowns of approximately $630 million as clients continued to deleverage. Consistent with industry trends, the company continued to maintain a high level of liquidity as client deposits from new and existing relationships increased 4 percent.
Total assets were $12.6 billion at June 30, 2010, compared to $11.0 billion at June 30, 2009, and $12.8 billion at March 31, 2010.
Total loans remained effectively flat at $8.9 billion at the end of the second quarter 2010, compared to $8.7 billion at the end of the second quarter 2009 and $8.9 billion at March 31, 2010. Commercial and industrial loans accounted for 53 percent of total loans, while commercial real estate loans were 32 percent at the end of the second quarter 2010.
Total deposits were $10.6 billion at June 30, 2010, compared to $8.3 billion at June 30, 2009, and $10.6 billion at March 31, 2010. Client deposits, representing 98 percent of total deposits, increased to $10.3 billion at the end of the second quarter 2010, up from $7.4 billion at the end of second quarter 2009 and $9.9 billion at March 31, 2010. Client deposits at June 30, 2010, included $2.1 billion in non-interest bearing deposits. Brokered deposits (excluding $1.0 billion in client CDARS® deposits) were 2 percent of total deposits at the end of the second quarter 2010, compared to 11 percent a year ago and 7 percent at the end of the first quarter 2010.
The Company's investment securities portfolio was $2.1 billion at June 30, 2010, compared to $1.5 billion at June 30, 2009, and $1.8 billion at March 31, 2010. Net unrealized gains were $77.0 million, compared to $38.7 million at the end of the second quarter 2009 and $53.7 million at the end of the first quarter 2010. The securities portfolio is primarily composed of U.S. government agency backed mortgage pools, agency collateralized mortgage obligations, and investment grade municipal bonds. During the second quarter the Company added $243.6 million to the investment portfolio net of payoffs and sales, predominantly in agency collateralized mortgage obligations and agency mortgage-backed securities.
Federal funds sold and other short-term investments were $769.8 million at the end of the second quarter 2010, up from $394.0 million at the end of second quarter 2009 and down from $1.1 billion in the first quarter 2010.
Funds borrowed, which include federal funds purchased, FHLB advances, trust preferred securities, borrowings under the Company's credit facilities, and convertible senior notes, was $637.8 million at June 30, 2010, down from $1.5 billion at June 30, 2009, and $740.2 million at March 31, 2010.
Capital
As of June 30, 2010, the total risk-based capital ratio was 14.97 percent and the Tier 1 risk-based capital ratio was 12.56 percent, exceeding the minimum well-capitalized thresholds of 10 percent and 6 percent, respectively. Tier 1 common capital ratio was 7.94 percent and tangible common equity ratio was 7.09 percent at the end of the second quarter 2010.
Quarterly Conference Call and Webcast Presentation
PrivateBancorp will host a conference call on Tuesday, July 27, 2010, 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). 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 August 3, 2010, by calling (800) 642-1687 (U.S. and Canada) or (706) 645-9291 (International) and entering passcode #84911941.
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 June 30, 2010, the Company had 34 offices in 10 states and $12.6 billion in assets. The Company website is www.theprivatebank.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 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 provided for in its allowance for loan and lease losses; the occurrence of unexpected events that adversely impact one or more large credits; continued declines in commercial real estate values in the Company's market areas; slower than anticipated economic recovery or further deterioration in economic conditions; 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; an inability to retain or attract key personnel; 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; other legislative or regulatory changes affecting financial services companies and/or the products and services offered by financial services companies; 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. Where 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 |
Six Months Ended |
|||||||
June 30, |
June 30, |
|||||||
2010 |
2009 |
2010 |
2009 |
|||||
Interest Income |
||||||||
Loans, including fees |
$112,839 |
$95,997 |
$223,901 |
$188,941 |
||||
Federal funds sold and other short-term investments |
664 |
161 |
1,208 |
449 |
||||
Securities: |
||||||||
Taxable |
16,417 |
13,646 |
31,867 |
28,192 |
||||
Exempt from Federal income taxes |
1,752 |
1,786 |
3,470 |
3,638 |
||||
Total interest income |
131,672 |
111,590 |
260,446 |
221,220 |
||||
Interest Expense |
||||||||
Interest-bearing deposits |
805 |
467 |
1,771 |
866 |
||||
Savings deposits and money market accounts |
9,368 |
6,036 |
18,482 |
12,600 |
||||
Brokered and other time deposits |
9,537 |
20,322 |
20,961 |
47,206 |
||||
Short-term borrowings |
1,383 |
1,844 |
2,829 |
4,832 |
||||
Long-term debt |
7,247 |
8,814 |
14,752 |
17,729 |
||||
Total interest expense |
28,340 |
37,483 |
58,795 |
83,233 |
||||
Net interest income |
103,332 |
74,107 |
201,651 |
137,987 |
||||
Provision for loan and covered asset losses |
45,392 |
21,521 |
117,940 |
39,326 |
||||
Net interest income after provision for |
||||||||
loan and covered asset losses |
57,940 |
52,586 |
83,711 |
98,661 |
||||
Non-interest Income |
||||||||
Wealth management |
4,836 |
3,500 |
9,260 |
7,294 |
||||
Mortgage banking |
1,797 |
2,686 |
3,918 |
4,861 |
||||
Capital markets products |
4,113 |
3,830 |
4,391 |
15,063 |
||||
Treasury management |
4,281 |
2,110 |
7,889 |
3,715 |
||||
Bank owned life insurance |
420 |
453 |
855 |
842 |
||||
Other income, service charges, and fees |
4,691 |
2,054 |
8,864 |
5,648 |
||||
Net securities gains (losses) |
(185) |
7,067 |
(156) |
7,839 |
||||
Early extinguishment of debt |
- |
(985) |
- |
(985) |
||||
Total non-interest income |
19,953 |
20,715 |
35,021 |
44,277 |
||||
Non-interest Expense |
||||||||
Salaries and employee benefits |
37,485 |
34,300 |
76,874 |
69,421 |
||||
Net occupancy expense |
7,747 |
6,067 |
15,042 |
12,127 |
||||
Technology and related costs |
2,424 |
1,967 |
5,467 |
4,531 |
||||
Marketing |
2,363 |
1,933 |
4,465 |
3,775 |
||||
Professional fees |
3,000 |
2,492 |
7,203 |
5,006 |
||||
Investment manager expenses |
643 |
556 |
1,278 |
1,165 |
||||
Net foreclosed property expenses |
3,686 |
967 |
5,089 |
1,411 |
||||
Supplies and printing |
322 |
392 |
612 |
734 |
||||
Postage, telephone, and delivery |
866 |
821 |
1,831 |
1,402 |
||||
Insurance |
5,654 |
9,157 |
11,073 |
12,989 |
||||
Amortization of intangibles |
415 |
325 |
830 |
654 |
||||
Loan and collection |
4,610 |
1,838 |
7,189 |
3,703 |
||||
Other expenses |
6,787 |
3,180 |
12,420 |
5,134 |
||||
Total non-interest expense |
76,002 |
63,995 |
149,373 |
122,052 |
||||
Income (loss) before income taxes |
1,891 |
9,306 |
(30,641) |
20,886 |
||||
Income tax (benefit) provision |
(766) |
3,372 |
(12,442) |
7,781 |
||||
Net income (loss) |
2,657 |
5,934 |
(18,199) |
13,105 |
||||
Net income attributable to noncontrolling interests |
76 |
57 |
146 |
117 |
||||
Net income (loss) attributable to controlling interests |
2,581 |
5,877 |
(18,345) |
12,988 |
||||
Preferred stock dividends and discount accretion |
3,399 |
3,399 |
6,793 |
5,669 |
||||
Net (loss) income available to common stockholders |
($818) |
$2,478 |
($25,138) |
$7,319 |
||||
Per Common Share Data |
||||||||
Basic |
$ (0.01) |
$ 0.06 |
$ (0.36) |
$ 0.21 |
||||
Diluted |
$ (0.01) |
$ 0.06 |
$ (0.36) |
$ 0.20 |
||||
Dividends |
$ 0.01 |
$ 0.01 |
$ 0.02 |
$ 0.02 |
||||
Weighted average common shares outstanding |
69,995 |
38,015 |
69,964 |
35,039 |
||||
Diluted average common shares outstanding |
69,995 |
39,795 |
69,964 |
36,956 |
||||
Note 1: Certain reclassifications have been made to prior period financial statements to place them on a basis comparable with the current |
||||||||
Note 2: Due to the net loss available to common stockholders reported for the three and six months ended June 30, 2010, all potentially dilutive |
||||||||
Quarterly Consolidated Income Statements |
||||||||||
Unaudited |
||||||||||
(Amounts in thousands except per share data) |
||||||||||
2Q10 |
1Q10 |
4Q09 |
3Q09 |
2Q09 |
||||||
Interest Income |
||||||||||
Loans, including fees |
$112,839 |
$111,062 |
$115,140 |
$107,749 |
$95,997 |
|||||
Federal funds sold and other short-term investments |
664 |
544 |
340 |
323 |
161 |
|||||
Securities: |
||||||||||
Taxable |
16,417 |
15,450 |
15,672 |
14,799 |
13,646 |
|||||
Exempt from Federal income taxes |
1,752 |
1,718 |
1,672 |
1,797 |
1,786 |
|||||
Total interest income |
131,672 |
128,774 |
132,824 |
124,668 |
111,590 |
|||||
Interest Expense |
||||||||||
Interest-bearing deposits |
805 |
966 |
848 |
932 |
467 |
|||||
Savings deposits and money market accounts |
9,368 |
9,114 |
9,022 |
8,013 |
6,036 |
|||||
Brokered and other time deposits |
9,537 |
11,424 |
13,959 |
18,170 |
20,322 |
|||||
Short-term borrowings |
1,383 |
1,446 |
1,613 |
1,649 |
1,844 |
|||||
Long-term debt |
7,247 |
7,505 |
7,820 |
8,469 |
8,814 |
|||||
Total interest expense |
28,340 |
30,455 |
33,262 |
37,233 |
37,483 |
|||||
Net interest income |
103,332 |
98,319 |
99,562 |
87,435 |
74,107 |
|||||
Provision for loan and covered asset losses |
45,392 |
72,548 |
70,077 |
90,016 |
21,521 |
|||||
Net interest income (loss) after provision for |
||||||||||
loan and covered asset losses |
57,940 |
25,771 |
29,485 |
(2,581) |
52,586 |
|||||
Non-interest Income |
||||||||||
Wealth management |
4,836 |
4,424 |
4,081 |
4,084 |
3,500 |
|||||
Mortgage banking |
1,797 |
2,121 |
2,243 |
1,826 |
2,686 |
|||||
Capital markets products |
4,113 |
278 |
2,409 |
(322) |
3,830 |
|||||
Treasury management |
4,281 |
3,608 |
3,366 |
3,067 |
2,110 |
|||||
Bank owned life insurance |
420 |
435 |
442 |
444 |
453 |
|||||
Other income, service charges, and fees |
4,691 |
4,173 |
1,918 |
4,093 |
2,054 |
|||||
Net securities gains (losses) |
(185) |
29 |
(149) |
(309) |
7,067 |
|||||
Early extinguishment of debt |
- |
- |
- |
- |
(985) |
|||||
Total non-interest income |
19,953 |
15,068 |
14,310 |
12,883 |
20,715 |
|||||
Non-interest Expense |
||||||||||
Salaries and employee benefits |
37,485 |
39,389 |
31,020 |
23,212 |
34,300 |
|||||
Net occupancy expense |
7,747 |
7,295 |
7,039 |
7,004 |
6,067 |
|||||
Technology and related costs |
2,424 |
3,043 |
3,503 |
2,565 |
1,967 |
|||||
Marketing |
2,363 |
2,102 |
3,568 |
2,500 |
1,933 |
|||||
Professional fees |
3,000 |
4,203 |
5,562 |
5,759 |
2,492 |
|||||
Investment manager expenses |
643 |
635 |
576 |
581 |
556 |
|||||
Net foreclosed property expenses |
3,686 |
1,403 |
1,810 |
2,454 |
967 |
|||||
Supplies and printing |
322 |
290 |
436 |
295 |
392 |
|||||
Postage, telephone, and delivery |
866 |
965 |
855 |
803 |
821 |
|||||
Insurance |
5,654 |
5,419 |
5,015 |
4,603 |
9,157 |
|||||
Amortization of intangibles |
415 |
415 |
536 |
547 |
325 |
|||||
Loan and collection |
4,610 |
2,579 |
4,526 |
1,388 |
1,838 |
|||||
Other expenses |
6,787 |
5,633 |
4,082 |
5,124 |
3,180 |
|||||
Total non-interest expense |
76,002 |
73,371 |
68,528 |
56,835 |
63,995 |
|||||
Income (loss) before income taxes |
1,891 |
(32,532) |
(24,733) |
(46,533) |
9,306 |
|||||
Income tax (benefit) provision |
(766) |
(11,676) |
(9,556) |
(18,789) |
3,372 |
|||||
Net income (loss) |
2,657 |
(20,856) |
(15,177) |
(27,744) |
5,934 |
|||||
Net income attributable to noncontrolling interests |
76 |
70 |
64 |
66 |
57 |
|||||
Net income (loss) attributable to controlling interests |
2,581 |
(20,926) |
(15,241) |
(27,810) |
5,877 |
|||||
Preferred stock dividends and discount accretion |
3,399 |
3,394 |
3,389 |
3,385 |
3,399 |
|||||
Net (loss) income available to common stockholders |
($818) |
($24,320) |
($18,630) |
($31,195) |
$2,478 |
|||||
Per Common Share Data |
||||||||||
Basic |
$ (0.01) |
$ (0.35) |
$ (0.30) |
$ (0.68) |
$ 0.06 |
|||||
Diluted |
$ (0.01) |
$ (0.35) |
$ (0.30) |
$ (0.68) |
$ 0.06 |
|||||
Dividends |
$ 0.01 |
$ 0.01 |
$ 0.01 |
$ 0.01 |
$ 0.01 |
|||||
Weighted average common shares outstanding |
69,995 |
69,933 |
61,608 |
46,047 |
38,015 |
|||||
Diluted average common shares outstanding |
69,995 |
69,933 |
61,608 |
46,047 |
39,795 |
|||||
Note 1: Due to the net loss available to common stockholders reported for each of the four trailing quarters, all potentially dilutive common stock |
||||||||||
Consolidated Balance Sheets |
||||||||||
(Dollars in thousands) |
||||||||||
06/30/10 |
03/31/10 |
12/31/09 |
09/30/09 |
06/30/09 |
||||||
unaudited |
unaudited |
audited |
unaudited |
unaudited |
||||||
Assets |
||||||||||
Cash and due from banks |
$111,997 |
$107,618 |
$320,160 |
$199,703 |
$99,088 |
|||||
Fed funds sold and other short-term investments |
769,803 |
1,146,814 |
218,935 |
332,188 |
393,953 |
|||||
Loans held for sale |
20,762 |
16,224 |
28,363 |
19,000 |
23,825 |
|||||
Securities available-for-sale, at fair value |
2,029,962 |
1,769,138 |
1,569,541 |
1,648,313 |
1,443,648 |
|||||
Non-marketable equity investments |
33,825 |
29,475 |
29,413 |
30,681 |
28,586 |
|||||
Loans, excluding covered assets and net of unearned fees |
8,851,439 |
8,898,228 |
9,046,625 |
9,009,539 |
8,728,926 |
|||||
Allowance for loan losses |
(232,411) |
(236,851) |
(221,688) |
(192,791) |
(140,088) |
|||||
Loans, net of allowance for loan losses and unearned fees |
8,619,028 |
8,661,377 |
8,824,937 |
8,816,748 |
8,588,838 |
|||||
Covered assets |
434,828 |
468,939 |
502,034 |
530,059 |
- |
|||||
Allowance for covered assets losses |
(5,176) |
(5,176) |
(2,764) |
- |
- |
|||||
Covered assets, net of allowance for covered assets |
429,652 |
463,763 |
499,270 |
530,059 |
- |
|||||
Other real estate owned |
68,693 |
60,755 |
41,497 |
36,705 |
29,236 |
|||||
Premises, furniture, and equipment, net |
40,599 |
41,350 |
41,344 |
32,870 |
33,162 |
|||||
Accrued interest receivable |
35,278 |
34,766 |
35,562 |
35,862 |
30,867 |
|||||
Investment in bank owned life insurance |
48,521 |
48,101 |
47,666 |
47,225 |
46,780 |
|||||
Goodwill |
94,646 |
94,658 |
94,671 |
94,683 |
95,045 |
|||||
Other intangible assets |
17,655 |
18,070 |
18,485 |
19,021 |
5,890 |
|||||
Derivative assets |
113,493 |
85,152 |
71,540 |
83,784 |
66,921 |
|||||
Other assets |
177,126 |
202,975 |
191,200 |
136,825 |
103,511 |
|||||
Total assets |
$12,611,040 |
$12,780,236 |
$12,032,584 |
$12,063,667 |
$10,989,350 |
|||||
Liabilities |
||||||||||
Demand deposits: |
||||||||||
Non-interest bearing |
$2,090,222 |
$1,886,427 |
$1,840,900 |
$1,565,492 |
$1,243,453 |
|||||
Interest bearing |
738,631 |
714,700 |
752,728 |
589,298 |
535,374 |
|||||
Savings deposits and money market accounts |
5,066,653 |
4,691,170 |
4,053,975 |
4,038,465 |
3,129,384 |
|||||
Brokered deposits |
1,236,589 |
1,831,306 |
1,566,139 |
1,606,823 |
1,943,065 |
|||||
Time deposits |
1,437,204 |
1,498,322 |
1,678,172 |
1,741,783 |
1,426,874 |
|||||
Total deposits |
10,569,299 |
10,621,925 |
9,891,914 |
9,541,861 |
8,278,150 |
|||||
Short-term borrowings |
164,069 |
241,293 |
214,975 |
690,352 |
892,706 |
|||||
Long-term debt |
473,720 |
498,874 |
533,023 |
618,173 |
606,793 |
|||||
Accrued interest payable |
7,727 |
10,357 |
9,673 |
12,051 |
18,809 |
|||||
Derivative liabilities |
116,599 |
86,873 |
71,958 |
85,097 |
65,844 |
|||||
Other liabilities |
43,534 |
100,687 |
75,425 |
47,614 |
47,670 |
|||||
Total liabilities |
11,374,948 |
11,560,009 |
10,796,968 |
10,995,148 |
9,909,972 |
|||||
Equity |
||||||||||
Preferred stock |
238,185 |
237,833 |
237,487 |
237,145 |
236,808 |
|||||
Common stock |
70,630 |
70,500 |
70,444 |
46,593 |
46,548 |
|||||
Treasury stock |
(19,003) |
(18,595) |
(18,489) |
(18,427) |
(18,223) |
|||||
Additional paid-in-capital |
946,981 |
944,095 |
940,338 |
767,579 |
761,068 |
|||||
Retained earnings |
(48,638) |
(47,112) |
(22,093) |
(2,748) |
28,896 |
|||||
Accumulated other comprehensive income, net |
47,758 |
33,403 |
27,896 |
38,161 |
24,131 |
|||||
Total stockholders' equity |
1,235,913 |
1,220,124 |
1,235,583 |
1,068,303 |
1,079,228 |
|||||
Noncontrolling interests |
179 |
103 |
33 |
216 |
150 |
|||||
Total equity |
1,236,092 |
1,220,227 |
1,235,616 |
1,068,519 |
1,079,378 |
|||||
Total liabilities and equity |
$12,611,040 |
$12,780,236 |
$12,032,584 |
$12,063,667 |
$10,989,350 |
|||||
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. |
||||||||||
Selected Financial Data |
||||||||||||
Unaudited |
||||||||||||
(Amounts in thousands except per share data) |
||||||||||||
2Q10 |
1Q10 |
4Q09 |
3Q09 |
2Q09 |
||||||||
Selected Statement of Income Data: |
||||||||||||
Net interest income |
$103,332 |
$98,319 |
$99,562 |
$87,435 |
$74,107 |
|||||||
Net revenue (1) (2) |
$124,209 |
$114,273 |
$114,802 |
$101,155 |
$95,821 |
|||||||
Operating profit (1) (2) |
$48,207 |
$40,902 |
$46,274 |
$44,320 |
$31,826 |
|||||||
(Loss) income before taxes |
$1,891 |
($32,532) |
($24,733) |
($46,533) |
$9,306 |
|||||||
Net (loss) income available to common stockholders |
($818) |
($24,320) |
($18,630) |
($31,195) |
$2,478 |
|||||||
Per Common Share Data: |
||||||||||||
Basic earnings per share |
($0.01) |
($0.35) |
($0.30) |
($0.68) |
$0.06 |
|||||||
Diluted earnings per share (3) |
($0.01) |
($0.35) |
($0.30) |
($0.68) |
$0.06 |
|||||||
Dividends |
$0.01 |
$0.01 |
$0.01 |
$0.01 |
$0.01 |
|||||||
Book value (period end) (1) |
$13.98 |
$13.77 |
$13.99 |
$17.48 |
$17.74 |
|||||||
Tangible book value (period end) (1) (2) |
$12.40 |
$12.19 |
$12.41 |
$15.09 |
$15.62 |
|||||||
Market value (close) |
$11.08 |
$13.70 |
$8.97 |
$24.46 |
$22.24 |
|||||||
Book value multiple |
0.79 |
x |
0.99 |
x |
0.64 |
x |
1.40 |
x |
1.25 |
x |
||
Share Data: |
||||||||||||
Weighted average common shares outstanding |
69,995 |
69,933 |
61,608 |
46,047 |
38,015 |
|||||||
Diluted average common shares outstanding (3) |
69,995 |
69,933 |
61,608 |
46,047 |
39,795 |
|||||||
Common shares issued (at period end) |
71,978 |
71,877 |
71,869 |
48,104 |
48,015 |
|||||||
Common shares outstanding (at period end) |
71,403 |
71,333 |
71,332 |
47,574 |
47,493 |
|||||||
Performance Ratios: |
||||||||||||
Return on average assets |
0.08% |
-0.68% |
-0.50% |
-0.94% |
0.23% |
|||||||
Return on average common equity |
-0.33% |
-9.86% |
-7.96% |
-14.51% |
1.45% |
|||||||
Net interest margin (1) (2) |
3.41% |
3.36% |
3.48% |
3.09% |
2.99% |
|||||||
Fee revenue as a percent of total revenue (1) |
16.31% |
13.27% |
12.68% |
13.11% |
16.49% |
|||||||
Non-interest income to average assets |
0.63% |
0.49% |
0.47% |
0.43% |
0.80% |
|||||||
Non-interest expense to average assets |
2.39% |
2.39% |
2.26% |
1.91% |
2.47% |
|||||||
Net overhead ratio (1) |
1.76% |
1.90% |
1.79% |
1.48% |
1.67% |
|||||||
Efficiency ratio (1) (2) |
61.19% |
64.21% |
59.69% |
56.19% |
66.79% |
|||||||
Selected Financial Condition Data: |
||||||||||||
Assets under management and administration (1) |
$3,746,934 |
$3,983,066 |
$3,983,623 |
$4,008,268 |
$3,171,697 |
|||||||
Balance Sheet Ratios: |
||||||||||||
Loans to Deposits (period end) |
83.75% |
83.80% |
91.48% |
94.43% |
105.45% |
|||||||
Average interest-earning assets to average interest-bearing liabilities |
130.58% |
129.96% |
127.44% |
122.93% |
120.58% |
|||||||
Capital Ratios (period end): |
||||||||||||
Total risk-based |
14.97% |
14.91% |
14.69% |
13.42% |
14.40% |
|||||||
Tier 1 risk-based |
12.56% |
12.49% |
12.32% |
11.02% |
11.95% |
|||||||
Leverage |
10.39% |
10.57% |
11.17% |
9.94% |
11.67% |
|||||||
Tier 1 common capital (1) (2) |
7.94% |
7.86% |
7.86% |
6.45% |
7.15% |
|||||||
Tangible common equity to tangible assets (1) (2) |
7.09% |
6.87% |
7.42% |
6.01% |
6.81% |
|||||||
Total equity to total assets |
9.80% |
9.55% |
10.27% |
8.86% |
9.82% |
|||||||
(1) Refer to Glossary of Terms for definition. |
||||||||||||
(2) This is a non-GAAP measure, refer to Non-GAAP Measures for a reconciliation to GAAP. |
||||||||||||
(3) For the first and second quarters 2010 and the third and fourth quarters 2009, diluted shares are equal to basic shares due to the net loss. The calculation of diluted earnings per |
||||||||||||
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. |
||||||||||||
SOURCE PrivateBancorp, Inc.
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