CHICAGO, Oct. 16, 2014 /PRNewswire/ -- PrivateBancorp, Inc. (NASDAQ: PVTB) today reported net income of $40.5 million, or $0.51 per diluted share, for the third quarter 2014, compared to $33.1 million, or $0.42 per diluted share, for the third quarter 2013, and $40.8 million, or $0.52 per diluted share, for the second quarter 2014. For the nine months ended September 30, 2014, the Company reported net income of $115.9 million, or $1.47 per diluted share, compared to $89.2 million, or $1.14 per diluted share, for the nine months ended September 30, 2013.
"Our success in building quality client relationships drove net income of $40.5 million, a 23 percent increase over the same period last year," said Larry D. Richman, President and Chief Executive Officer, PrivateBancorp, Inc. "Loans increased 11 percent year-over-year and by $410 million from the previous quarter. Revenue growth on higher average loan balances, along with lower credit costs, led to an 11 percent increase in operating profit from third quarter 2013.
"Our performance over the last several years shows the strength of our commercial banking business and our ability to consistently grow loans and deposits over the long term," Richman continued. "I believe we are well positioned to complete a strong year as we continue to build relationships and do more for existing and new clients."
Third Quarter 2014 Highlights
- Operating profit was $70.4 million, up 11 percent from the third quarter 2013 and 4 percent from the second quarter 2014, driven by higher revenues from continued growth in earning assets.
- Total loans increased to $11.5 billion, up 11 percent from a year ago and 4 percent from June 30, 2014, primarily driven by growth in commercial and industrial loans. Average loans grew $1.1 billion from the third quarter 2013 and $353.6 million from the second quarter 2014.
- Total deposits grew to $12.8 billion, up 9 percent from September 30, 2013, and 5 percent from June 30, 2014, driven primarily by growth in interest-bearing demand deposits and money market accounts.
- Net interest margin was 3.23 percent, compared to 3.18 percent for the third quarter 2013 and 3.21 percent for the second quarter 2014. Higher loan fees more than offset continued competitive pressures on loan pricing and higher average deposit costs.
- Provision for loan and covered loan losses was $3.9 million, compared to $8.1 million for the third quarter 2013 and $327,000 for the second quarter 2014. A $2.0 million provision for loan losses was offset by $1.7 million of covered loan recoveries for the second quarter 2014.
- Return on average common equity was 11.3 percent and return on average assets was 1.09 percent for the third quarter 2014.
Operating Performance
Net interest income was $116.8 million in the third quarter 2014, an increase of 10 percent compared to the third quarter 2013, and 4 percent compared to the second quarter 2014, primarily due to higher average loan balances. Average loans increased 11 percent from the third quarter 2013 and 3 percent from the second quarter 2014. Higher rates paid on longer duration brokered time deposits added during the third quarter 2014 contributed to a slight increase in deposit costs. Compared to the third quarter 2013, interest expense on long-term debt declined 14 percent, largely reflecting the prepayment of a subordinated debt facility in the fourth quarter 2013. Net interest margin was 3.23 percent in the third quarter 2014, compared to 3.21 percent in the second quarter 2014 and 3.18 percent in the third quarter 2013. On a sequential basis, loan yields were up two basis points, as higher loan fees more than offset the impact of competitive pricing pressures.
Noninterest income was $30.7 million in the third quarter 2014, up $2.9 million compared to the third quarter 2013 and up slightly compared to the second quarter 2014. Syndication fees were $6.8 million, up $2.5 million compared to the third quarter 2013 and $1.4 million compared to the second quarter 2014, driven by strong loan originations and sales volume. The level of syndication activity may vary from quarter to quarter with syndication fees for third quarter 2014 a record amount. Capital markets revenue of $3.3 million was down from $3.9 million for the third quarter 2013 and $5.0 million for the second quarter 2014, as the prior quarter had a higher level of foreign exchange-related transactions. The demand for interest rate derivatives continues to be impacted by expectations for the low rate environment.
Treasury management fees grew to $6.9 million in the third quarter 2014, up 12 percent from the third quarter 2013 and 4 percent from the second quarter 2014, largely due to new treasury management relationships. Asset management revenue was $4.2 million in the third quarter 2014, compared to $4.6 million for the third quarter 2013 and $4.4 million for the second quarter 2014. Assets under management and administration were $6.5 billion as of September 30, 2014, compared to $5.6 billion a year ago and $6.4 billion at June 30, 2014.
Expenses
Noninterest expense of $77.8 million was $6.6 million higher than the third quarter 2013 and up slightly compared to the second quarter 2014. The efficiency ratio was 52.5 percent for the third quarter 2014, compared to 53.0 percent for the third quarter 2013 and 52.6 percent for the second quarter 2014.
Salary and employee benefits expense was up 12 percent compared to the third quarter 2013 and 5 percent compared to the second quarter 2014, driven primarily by increased incentive compensation accruals tied to improved performance. Net foreclosed property expense declined 63 percent compared to the third quarter 2013 and 41 percent compared to the second quarter 2014, primarily reflecting a lower amount of writedowns on foreclosed property (OREO). Other expenses increased $1.7 million from the third quarter 2013 and $1.0 million from the second quarter 2014, primarily related to changes in the provision for unfunded commitments. The provision for unfunded commitments was up $1.8 million from the third quarter 2013 and $820,000 from the second quarter 2014.
Credit Quality
Nonperforming assets declined to 0.60 percent of total assets at September 30, 2014, compared to 1.07 percent at September 30, 2013, and 0.66 percent at June 30, 2014. At September 30, 2014, nonperforming loans were $73.4 million, down 35 percent from September 30, 2013, and 4 percent from June 30, 2014. OREO of $17.3 million at September 30, 2014, declined 51 percent from September 30, 2013, and 13 percent from June 30, 2014.
The allowance for loan losses as a percentage of total loans was 1.30 percent at September 30, 2014, compared to 1.32 percent at June 30, 2014. The provision for loan losses was $3.7 million for the third quarter 2014 compared to $2.0 million for the second quarter 2014. Net charge-offs declined to $88,000 from $2.3 million for the second quarter 2014, as charge-off levels remained low at $1.8 million for the third quarter 2014 compared to $4.7 million for the prior quarter. General allocated reserves increased 3 percent on a sequential basis, reflecting loan growth and changes in the performing loan portfolio.
Credit quality results exclude covered assets acquired through an FDIC-assisted transaction that are subject to a loss sharing agreement.
Balance Sheet
Total assets were $15.2 billion at September 30, 2014, up compared to $13.9 billion at September 30, 2013, and $14.6 billion at June 30, 2014. Total loans of $11.5 billion were $1.1 billion, or 11 percent, higher than September 30, 2013, and grew $410.6 million, or 4 percent, from the previous quarter end. Revolver usage was relatively flat on a sequential basis. At September 30, 2014, total commercial loans comprised 68 percent of total loans, up from 67 percent a year ago, and total commercial real estate and construction loans comprised 26 percent of total loans, down slightly from 27 percent at September 30, 2013. The Company's investment securities portfolio was $2.6 billion at September 30, 2014, up 3 percent from September 30, 2013, and consistent with June 30, 2014.
Total liabilities were $13.8 billion at September 30, 2014, up compared to $12.6 billion at September 30, 2013, and $13.2 billion compared to June 30, 2014. Total deposits were $12.8 billion at September 30, 2014, an increase of $1.0 billion, or 9 percent, from September 30, 2013, and $613.0 million, or 5 percent, from June 30, 2014. On a sequential basis, higher interest-bearing demand deposits and money market accounts drove much of the growth. The deposit balances of our commercial clients may fluctuate depending on their cash management and liquidity needs. Noninterest bearing demand deposits comprised 26 percent of total deposits at September 30, 2014, comparable to September 30, 2013, and 28 percent at June 30, 2014. At September 30, 2014, the loan-to-deposit ratio was 90 percent, compared to 88 percent as of September 30, 2013, and 91 percent as of June 30, 2014.
As of September 30, 2014, approximately $40 million in loans and $129 million in deposits related to retail and small business clients of the Norcross, Ga., branch were considered held-for-sale. The sale is expected to result in an estimated gain of approximately $0.03 to $0.04 per share to be recognized upon closing of the transaction, which is anticipated to be during the fourth quarter 2014.
Capital
As of September 30, 2014, the total risk-based capital ratio was 13.18 percent, the Tier 1 risk-based capital ratio was 11.12 percent, and the leverage ratio was 10.70 percent. The Tier 1 common capital ratio was 9.38 percent (excluding the effect of the final Basel III capital rules that go into effect January 2015) and the tangible common equity ratio was 8.84 percent at the end of the third quarter 2014.
On October 8, 2014, the Company completed the redemption of $75.0 million of its total 10.00% trust preferred securities, which are considered Tier 1 capital. The redemption payment was funded out of available cash.
Quarterly Conference Call and Webcast Presentation
PrivateBancorp will host a conference call Thursday, October 16, 2014, at 10 a.m. CDT. The call may be accessed by telephone at (888) 782-9127 (U.S. and Canada) or (706) 634-5643 (International) and entering passcode #8224503. A live webcast of the call can be accessed on the Company website at: investor.theprivatebank.com or 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 October 31, 2014, by calling (855) 859-2056 (U.S. and Canada) or (404) 537-3406 (International) and entering passcode #8224503.
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 September 30, 2014, the Company had 34 offices in 10 states and $15.2 billion in assets. The Company's website is www.theprivatebank.com.
Forward-Looking Statements
Statements made 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:
- continued uncertainty regarding U.S. and global economic outlook that may impact market conditions or affect demand for certain banking products and services;
- unanticipated developments in pending or prospective loan transactions or greater than expected paydowns or payoffs of existing loans;
- unanticipated changes in interest rates;
- competitive pressures in the financial services industry that may affect the pricing of the Company's loan and deposit products as well as its services;
- unforeseen credit quality problems or changing economic conditions that could result in charge-offs greater than we have anticipated in our allowance for loan losses or changes in value of our investments;
- lack of sufficient or cost-effective sources of liquidity or funding as and when needed;
- loss of key personnel or an inability to recruit and retain appropriate talent;
- greater than anticipated costs associated with compliance or regulatory burdens, or investments in technology or other infrastructure enhancements; or
- failures or disruptions to our data processing or other information or operational systems, including the potential impact of disruptions or breaches at our third party service providers.
These factors should be considered in evaluating forward-looking statements and undue reliance should not be placed on our forward-looking statements. Readers should also consider the risks, assumptions and uncertainties set forth in the "Risk Factors" section of our Annual Report on Form 10-K for the year ended December 31, 2013, and "Management's Discussion and Analysis of Financial Condition and Results of Operations" section of our Quarterly Report on Form 10-Q for the quarter ended March 31, 2014, as well as those set forth in our subsequent periodic and current reports filed with the SEC. Forward-looking statements speak only as of the date they are made and we assume no obligation to update any of these statements in light of new information, future events or otherwise unless required under the federal securities laws.
Non-U.S. GAAP Financial Measures
This press release contains both financial measures based on accounting principles generally accepted in the United States (U.S. GAAP) and non-U.S. GAAP based financial measures. We believe that presenting these non-U.S. GAAP financial measures will provide information useful to investors in understanding our underlying operational performance, our business, and performance trends and facilitates comparisons with the performance of others in the banking industry. If non-U.S. GAAP financial measures are used, the comparable U.S. GAAP financial measure, as well as the reconciliation to the comparable U.S. 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 U.S. GAAP, nor are they necessarily comparable to non-U.S. GAAP performance measures that may be presented by other companies.
Editor's Note: Financial highlights attached. Full financial supplement available on the Company's website at investor.theprivatebank.com.
|
Consolidated Income Statements
|
|
(Amounts in thousands, except per share data)
|
|
(Unaudited)
|
|
Quarter Ended
September 30,
|
|
Nine Months Ended
September 30,
|
|
2014
|
|
2013
|
|
2014
|
|
2013
|
|
Interest Income
|
|
|
|
|
|
|
|
|
Loans, including fees
|
$
|
119,211
|
|
$
|
108,912
|
|
$
|
343,106
|
|
$
|
323,106
|
|
Federal funds sold and interest-bearing deposits in banks
|
142
|
|
111
|
|
423
|
|
431
|
|
Securities:
|
|
|
|
|
|
|
|
|
Taxable
|
13,370
|
|
12,931
|
|
40,250
|
|
38,272
|
|
Exempt from Federal income taxes
|
1,529
|
|
1,562
|
|
4,490
|
|
4,596
|
|
Other interest income
|
48
|
|
61
|
|
140
|
|
213
|
|
Total interest income
|
134,300
|
|
123,577
|
|
388,409
|
|
366,618
|
|
Interest Expense
|
|
|
|
|
|
|
|
|
Interest-bearing demand deposits
|
918
|
|
1,032
|
|
2,702
|
|
3,181
|
|
Savings deposits and money market accounts
|
4,173
|
|
3,895
|
|
12,234
|
|
12,181
|
|
Time and brokered time deposits
|
5,723
|
|
5,014
|
|
15,563
|
|
15,099
|
|
Short-term and secured borrowings
|
158
|
|
161
|
|
495
|
|
689
|
|
Long-term debt
|
6,570
|
|
7,640
|
|
19,554
|
|
22,861
|
|
Total interest expense
|
17,542
|
|
17,742
|
|
50,548
|
|
54,011
|
|
Net interest income
|
116,758
|
|
105,835
|
|
337,861
|
|
312,607
|
|
Provision for loan and covered loan losses
|
3,890
|
|
8,120
|
|
7,924
|
|
27,320
|
|
Net interest income after provision for loan and covered loan losses
|
112,868
|
|
97,715
|
|
329,937
|
|
285,287
|
|
Non-interest Income
|
|
|
|
|
|
|
|
|
Asset management
|
4,240
|
|
4,570
|
|
13,027
|
|
13,764
|
|
Mortgage banking
|
2,904
|
|
2,946
|
|
7,162
|
|
10,314
|
|
Capital markets products
|
3,253
|
|
3,921
|
|
12,342
|
|
15,008
|
|
Treasury management
|
6,935
|
|
6,214
|
|
20,210
|
|
18,347
|
|
Loan, letter of credit and commitment fees
|
4,970
|
|
4,384
|
|
14,410
|
|
12,743
|
|
Syndication fees
|
6,818
|
|
4,322
|
|
15,571
|
|
11,294
|
|
Deposit service charges and fees and other income
|
1,546
|
|
1,298
|
|
3,912
|
|
4,885
|
|
Net securities gains
|
3
|
|
118
|
|
530
|
|
895
|
|
Total non-interest income
|
30,669
|
|
27,773
|
|
87,164
|
|
87,250
|
|
Non-interest Expense
|
|
|
|
|
|
|
|
|
Salaries and employee benefits
|
46,421
|
|
41,360
|
|
135,446
|
|
124,354
|
|
Net occupancy expense
|
7,807
|
|
7,558
|
|
23,311
|
|
22,479
|
|
Technology and related costs
|
3,362
|
|
3,343
|
|
9,850
|
|
10,283
|
|
Marketing
|
3,752
|
|
2,986
|
|
9,754
|
|
8,998
|
|
Professional services
|
2,626
|
|
2,465
|
|
8,290
|
|
6,146
|
|
Outsourced servicing costs
|
1,736
|
|
1,607
|
|
5,050
|
|
5,205
|
|
Net foreclosed property expenses
|
1,631
|
|
4,396
|
|
7,225
|
|
16,594
|
|
Postage, telephone, and delivery
|
839
|
|
852
|
|
2,591
|
|
2,676
|
|
Insurance
|
3,077
|
|
2,590
|
|
8,996
|
|
7,933
|
|
Loan and collection expense
|
2,099
|
|
1,345
|
|
4,728
|
|
6,402
|
|
Other expenses
|
4,486
|
|
2,767
|
|
13,810
|
|
16,417
|
|
Total non-interest expense
|
77,836
|
|
71,269
|
|
229,051
|
|
227,487
|
|
Income before income taxes
|
65,701
|
|
54,219
|
|
188,050
|
|
145,050
|
|
Income tax provision
|
25,174
|
|
21,161
|
|
72,194
|
|
55,807
|
|
Net income available to common stockholders
|
$
|
40,527
|
|
$
|
33,058
|
|
$
|
115,856
|
|
$
|
89,243
|
|
Per Common Share Data
|
|
|
|
|
|
|
|
|
Basic earnings per share
|
$
|
0.52
|
|
$
|
0.42
|
|
$
|
1.48
|
|
$
|
1.15
|
|
Diluted earnings per share
|
$
|
0.51
|
|
$
|
0.42
|
|
$
|
1.47
|
|
$
|
1.14
|
|
Cash dividends declared
|
$
|
0.01
|
|
$
|
0.01
|
|
$
|
0.03
|
|
$
|
0.03
|
|
Weighted-average common shares outstanding
|
77,110
|
|
76,494
|
|
76,951
|
|
76,352
|
|
Weighted-average diluted common shares outstanding
|
77,934
|
|
76,819
|
|
77,721
|
|
76,537
|
|
Consolidated Income Statements
|
|
(Amounts in thousands, except per share data)
|
|
(Unaudited)
|
|
3Q14
|
|
2Q14
|
|
1Q14
|
|
4Q13
|
|
3Q13
|
|
Interest Income
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans, including fees
|
$
|
119,211
|
|
|
$
|
113,696
|
|
|
$
|
110,199
|
|
|
$
|
110,723
|
|
|
$
|
108,912
|
|
|
Federal funds sold and interest-bearing deposits in banks
|
142
|
|
|
139
|
|
|
142
|
|
|
221
|
|
|
111
|
|
|
Securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Taxable
|
13,370
|
|
|
13,625
|
|
|
13,255
|
|
|
13,038
|
|
|
12,931
|
|
|
Exempt from Federal income taxes
|
1,529
|
|
|
1,432
|
|
|
1,529
|
|
|
1,604
|
|
|
1,562
|
|
|
Other interest income
|
48
|
|
|
59
|
|
|
33
|
|
|
34
|
|
|
61
|
|
|
Total interest income
|
134,300
|
|
|
128,951
|
|
|
125,158
|
|
|
125,620
|
|
|
123,577
|
|
|
Interest Expense
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest-bearing demand deposits
|
918
|
|
|
842
|
|
|
942
|
|
|
1,021
|
|
|
1,032
|
|
|
Savings deposits and money market accounts
|
4,173
|
|
|
4,087
|
|
|
3,974
|
|
|
4,169
|
|
|
3,895
|
|
|
Time and brokered time deposits
|
5,723
|
|
|
5,034
|
|
|
4,806
|
|
|
5,062
|
|
|
5,014
|
|
|
Short-term and secured borrowings
|
158
|
|
|
141
|
|
|
196
|
|
|
161
|
|
|
161
|
|
|
Long-term debt
|
6,570
|
|
|
6,496
|
|
|
6,488
|
|
|
6,751
|
|
|
7,640
|
|
|
Total interest expense
|
17,542
|
|
|
16,600
|
|
|
16,406
|
|
|
17,164
|
|
|
17,742
|
|
|
Net interest income
|
116,758
|
|
|
112,351
|
|
|
108,752
|
|
|
108,456
|
|
|
105,835
|
|
|
Provision for loan and covered loan losses
|
3,890
|
|
|
327
|
|
|
3,707
|
|
|
4,476
|
|
|
8,120
|
|
|
Net interest income after provision for loan and covered loan losses
|
112,868
|
|
|
112,024
|
|
|
105,045
|
|
|
103,980
|
|
|
97,715
|
|
|
Non-interest Income
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Asset management
|
4,240
|
|
|
4,440
|
|
|
4,347
|
|
|
4,613
|
|
|
4,570
|
|
|
Mortgage banking
|
2,904
|
|
|
2,626
|
|
|
1,632
|
|
|
1,858
|
|
|
2,946
|
|
|
Capital markets products
|
3,253
|
|
|
5,006
|
|
|
4,083
|
|
|
5,720
|
|
|
3,921
|
|
|
Treasury management
|
6,935
|
|
|
6,676
|
|
|
6,599
|
|
|
6,321
|
|
|
6,214
|
|
|
Loan, letter of credit and commitment fees
|
4,970
|
|
|
4,806
|
|
|
4,634
|
|
|
4,474
|
|
|
4,384
|
|
|
Syndication fees
|
6,818
|
|
|
5,440
|
|
|
3,313
|
|
|
2,153
|
|
|
4,322
|
|
|
Deposit service charges and fees and other income
|
1,546
|
|
|
1,069
|
|
|
1,297
|
|
|
1,322
|
|
|
1,298
|
|
|
Net securities gains
|
3
|
|
|
196
|
|
|
331
|
|
|
279
|
|
|
118
|
|
|
Total non-interest income
|
30,669
|
|
|
30,259
|
|
|
26,236
|
|
|
26,740
|
|
|
27,773
|
|
|
Non-interest Expense
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Salaries and employee benefits
|
46,421
|
|
|
44,405
|
|
|
44,620
|
|
|
42,575
|
|
|
41,360
|
|
|
Net occupancy expense
|
7,807
|
|
|
7,728
|
|
|
7,776
|
|
|
7,548
|
|
|
7,558
|
|
|
Technology and related costs
|
3,362
|
|
|
3,205
|
|
|
3,283
|
|
|
3,443
|
|
|
3,343
|
|
|
Marketing
|
3,752
|
|
|
3,589
|
|
|
2,413
|
|
|
3,592
|
|
|
2,986
|
|
|
Professional services
|
2,626
|
|
|
2,905
|
|
|
2,759
|
|
|
2,393
|
|
|
2,465
|
|
|
Outsourced servicing costs
|
1,736
|
|
|
1,850
|
|
|
1,464
|
|
|
1,612
|
|
|
1,607
|
|
|
Net foreclosed property expenses
|
1,631
|
|
|
2,771
|
|
|
2,823
|
|
|
3,600
|
|
|
4,396
|
|
|
Postage, telephone, and delivery
|
839
|
|
|
927
|
|
|
825
|
|
|
845
|
|
|
852
|
|
|
Insurance
|
3,077
|
|
|
3,016
|
|
|
2,903
|
|
|
2,934
|
|
|
2,590
|
|
|
Loan and collection expense
|
2,099
|
|
|
1,573
|
|
|
1,056
|
|
|
2,351
|
|
|
1,345
|
|
|
Other expenses
|
4,486
|
|
|
3,496
|
|
|
5,828
|
|
|
4,934
|
|
|
2,767
|
|
|
Total non-interest expense
|
77,836
|
|
|
75,465
|
|
|
75,750
|
|
|
75,827
|
|
|
71,269
|
|
|
Income before income taxes
|
65,701
|
|
|
66,818
|
|
|
55,531
|
|
|
54,893
|
|
|
54,219
|
|
|
Income tax provision
|
25,174
|
|
|
25,994
|
|
|
21,026
|
|
|
21,187
|
|
|
21,161
|
|
|
Net income available to common stockholders
|
$
|
40,527
|
|
|
$
|
40,824
|
|
|
$
|
34,505
|
|
|
$
|
33,706
|
|
|
$
|
33,058
|
|
|
Per Common Share Data
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic earnings per share
|
$
|
0.52
|
|
|
$
|
0.52
|
|
|
$
|
0.44
|
|
|
$
|
0.43
|
|
|
$
|
0.42
|
|
|
Diluted earnings per share
|
$
|
0.51
|
|
|
$
|
0.52
|
|
|
$
|
0.44
|
|
|
$
|
0.43
|
|
|
$
|
0.42
|
|
|
Cash dividends declared
|
$
|
0.01
|
|
|
$
|
0.01
|
|
|
$
|
0.01
|
|
|
$
|
0.01
|
|
|
$
|
0.01
|
|
|
Weighted-average common shares outstanding
|
77,110
|
|
|
77,062
|
|
|
76,675
|
|
|
76,533
|
|
|
76,494
|
|
|
Weighted-average diluted common shares outstanding
|
77,934
|
|
|
77,806
|
|
|
77,417
|
|
|
76,967
|
|
|
76,819
|
|
|
Consolidated Balance Sheets
|
|
(Dollars in thousands)
|
|
9/30/14
|
|
6/30/14
|
|
3/31/14
|
|
12/31/13
|
|
9/30/13
|
|
(Unaudited)
|
|
(Unaudited)
|
|
(Unaudited)
|
|
(Audited)
|
|
(Unaudited)
|
|
Assets
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash and due from banks
|
$
|
181,248
|
|
|
$
|
247,048
|
|
|
$
|
233,685
|
|
|
$
|
133,518
|
|
|
$
|
247,460
|
|
|
Federal funds sold and interest-bearing deposits in banks
|
416,071
|
|
|
160,349
|
|
|
117,446
|
|
|
306,544
|
|
|
180,608
|
|
|
Loans held-for-sale
|
57,748
|
|
|
80,724
|
|
|
26,262
|
|
|
26,816
|
|
|
27,644
|
|
|
Securities available-for-sale, at fair value
|
1,541,754
|
|
|
1,527,747
|
|
|
1,577,406
|
|
|
1,602,476
|
|
|
1,611,022
|
|
|
Securities held-to-maturity, at amortized cost
|
1,072,002
|
|
|
1,066,216
|
|
|
1,023,214
|
|
|
921,436
|
|
|
931,342
|
|
|
Federal Home Loan Bank ("FHLB") stock
|
28,666
|
|
|
28,666
|
|
|
30,005
|
|
|
30,005
|
|
|
34,063
|
|
|
Loans – excluding covered assets, net of unearned fees
|
11,547,587
|
|
|
11,136,942
|
|
|
10,924,985
|
|
|
10,644,021
|
|
|
10,409,443
|
|
|
Allowance for loan losses
|
(150,135)
|
|
|
(146,491)
|
|
|
(146,768)
|
|
|
(143,109)
|
|
|
(145,513)
|
|
|
Loans, net of allowance for loan losses and unearned fees
|
11,397,452
|
|
|
10,990,451
|
|
|
10,778,217
|
|
|
10,500,912
|
|
|
10,263,930
|
|
|
Covered assets
|
65,482
|
|
|
81,047
|
|
|
94,349
|
|
|
112,746
|
|
|
140,083
|
|
|
Allowance for covered loan losses
|
(4,485)
|
|
|
(14,375)
|
|
|
(16,571)
|
|
|
(16,511)
|
|
|
(21,653)
|
|
|
Covered assets, net of allowance for covered loan losses
|
60,997
|
|
|
66,672
|
|
|
77,778
|
|
|
96,235
|
|
|
118,430
|
|
|
Other real estate owned, excluding covered assets
|
17,293
|
|
|
19,823
|
|
|
23,565
|
|
|
28,548
|
|
|
35,310
|
|
|
Premises, furniture, and equipment, net
|
39,611
|
|
|
40,088
|
|
|
39,556
|
|
|
39,704
|
|
|
36,445
|
|
|
Accrued interest receivable
|
39,701
|
|
|
36,568
|
|
|
39,273
|
|
|
37,004
|
|
|
35,758
|
|
|
Investment in bank owned life insurance
|
54,849
|
|
|
54,500
|
|
|
54,184
|
|
|
53,865
|
|
|
53,539
|
|
|
Goodwill
|
94,041
|
|
|
94,041
|
|
|
94,041
|
|
|
94,041
|
|
|
94,484
|
|
|
Other intangible assets
|
6,627
|
|
|
7,381
|
|
|
8,136
|
|
|
8,892
|
|
|
10,486
|
|
|
Derivative assets
|
34,896
|
|
|
47,012
|
|
|
44,528
|
|
|
48,422
|
|
|
57,771
|
|
|
Other assets
|
147,512
|
|
|
135,118
|
|
|
137,486
|
|
|
157,328
|
|
|
130,848
|
|
|
Total assets
|
$
|
15,190,468
|
|
|
$
|
14,602,404
|
|
|
$
|
14,304,782
|
|
|
$
|
14,085,746
|
|
|
$
|
13,869,140
|
|
|
Liabilities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Demand deposits:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Noninterest-bearing
|
$
|
3,342,862
|
|
|
$
|
3,387,424
|
|
|
$
|
3,103,736
|
|
|
$
|
3,172,676
|
|
|
$
|
3,106,986
|
|
|
Interest-bearing
|
1,433,429
|
|
|
1,230,681
|
|
|
1,466,095
|
|
|
1,470,856
|
|
|
1,183,471
|
|
|
Savings deposits and money market accounts
|
5,368,866
|
|
|
5,033,247
|
|
|
4,786,398
|
|
|
4,799,561
|
|
|
4,778,057
|
|
|
Time deposits
|
1,342,765
|
|
|
1,299,616
|
|
|
1,320,466
|
|
|
1,336,522
|
|
|
1,333,232
|
|
|
Brokered time deposits
|
1,361,282
|
|
|
1,285,233
|
|
|
1,209,466
|
|
|
1,234,026
|
|
|
1,430,810
|
|
|
Total deposits
|
12,849,204
|
|
|
12,236,201
|
|
|
11,886,161
|
|
|
12,013,641
|
|
|
11,832,556
|
|
|
Deposits held-for-sale
|
128,508
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
Short-term and secured borrowings
|
6,563
|
|
|
235,319
|
|
|
333,400
|
|
|
8,400
|
|
|
131,400
|
|
|
Long-term debt
|
656,793
|
|
|
626,793
|
|
|
627,793
|
|
|
627,793
|
|
|
499,793
|
|
|
Accrued interest payable
|
6,987
|
|
|
6,282
|
|
|
6,251
|
|
|
6,326
|
|
|
6,042
|
|
|
Derivative liabilities
|
27,976
|
|
|
35,402
|
|
|
40,522
|
|
|
48,890
|
|
|
55,933
|
|
|
Other liabilities
|
79,128
|
|
|
64,586
|
|
|
67,409
|
|
|
78,792
|
|
|
69,728
|
|
|
Total liabilities
|
13,755,159
|
|
|
13,204,583
|
|
|
12,961,536
|
|
|
12,783,842
|
|
|
12,595,452
|
|
|
Equity
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Common stock:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Voting
|
76,858
|
|
|
75,526
|
|
|
75,428
|
|
|
75,240
|
|
|
75,240
|
|
|
Nonvoting
|
285
|
|
|
1,585
|
|
|
1,585
|
|
|
1,585
|
|
|
1,585
|
|
|
Treasury stock
|
(6)
|
|
|
(945)
|
|
|
(1,697)
|
|
|
(6,415)
|
|
|
(7,303)
|
|
|
Additional paid-in capital
|
1,028,813
|
|
|
1,024,869
|
|
|
1,021,436
|
|
|
1,022,023
|
|
|
1,019,143
|
|
|
Retained earnings
|
313,123
|
|
|
273,380
|
|
|
233,347
|
|
|
199,627
|
|
|
166,700
|
|
|
Accumulated other comprehensive income, net of tax
|
16,236
|
|
|
23,406
|
|
|
13,147
|
|
|
9,844
|
|
|
18,323
|
|
|
Total equity
|
1,435,309
|
|
|
1,397,821
|
|
|
1,343,246
|
|
|
1,301,904
|
|
|
1,273,688
|
|
|
Total liabilities and equity
|
$
|
15,190,468
|
|
|
$
|
14,602,404
|
|
|
$
|
14,304,782
|
|
|
$
|
14,085,746
|
|
|
$
|
13,869,140
|
|
|
|
Note: Certain reclassifications have been made to prior period amounts to conform to the current period presentation.
|
|
Selected Financial Data
|
|
(Amounts in thousands, except per share data)
|
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
3Q14
|
|
2Q14
|
|
1Q14
|
|
4Q13
|
|
3Q13
|
|
|
Selected Statement of Income Data:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest income
|
$
|
116,758
|
|
|
$
|
112,351
|
|
|
$
|
108,752
|
|
|
$
|
108,456
|
|
|
$
|
105,835
|
|
|
|
Net revenue (1)(2)
|
$
|
148,238
|
|
|
$
|
143,354
|
|
|
$
|
135,788
|
|
|
$
|
136,036
|
|
|
$
|
134,426
|
|
|
|
Operating profit (1)(2)
|
$
|
70,402
|
|
|
$
|
67,889
|
|
|
$
|
60,038
|
|
|
$
|
60,209
|
|
|
$
|
63,157
|
|
|
|
Provision for loan and covered loan losses
|
$
|
3,890
|
|
|
$
|
327
|
|
|
$
|
3,707
|
|
|
$
|
4,476
|
|
|
$
|
8,120
|
|
|
|
Income before income taxes
|
$
|
65,701
|
|
|
$
|
66,818
|
|
|
$
|
55,531
|
|
|
$
|
54,893
|
|
|
$
|
54,219
|
|
|
|
Net income available to common stockholders
|
$
|
40,527
|
|
|
$
|
40,824
|
|
|
$
|
34,505
|
|
|
$
|
33,706
|
|
|
$
|
33,058
|
|
|
|
Per Common Share Data:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic earnings per share
|
$
|
0.52
|
|
|
$
|
0.52
|
|
|
$
|
0.44
|
|
|
$
|
0.43
|
|
|
$
|
0.42
|
|
|
|
Diluted earnings per share
|
$
|
0.51
|
|
|
$
|
0.52
|
|
|
$
|
0.44
|
|
|
$
|
0.43
|
|
|
$
|
0.42
|
|
|
|
Dividends declared
|
$
|
0.01
|
|
|
$
|
0.01
|
|
|
$
|
0.01
|
|
|
$
|
0.01
|
|
|
$
|
0.01
|
|
|
|
Book value (period end) (1)
|
$
|
18.37
|
|
|
$
|
17.90
|
|
|
$
|
17.21
|
|
|
$
|
16.75
|
|
|
$
|
16.40
|
|
|
|
Tangible book value (period end) (1)(2)
|
$
|
17.08
|
|
|
$
|
16.61
|
|
|
$
|
15.90
|
|
|
$
|
15.43
|
|
|
$
|
15.05
|
|
|
|
Market value (period end)
|
$
|
29.91
|
|
|
$
|
29.06
|
|
|
$
|
30.51
|
|
|
$
|
28.93
|
|
|
$
|
21.40
|
|
|
|
Book value multiple (period end)
|
1.63
|
|
x
|
1.62
|
|
x
|
1.77
|
|
x
|
1.73
|
|
x
|
1.31
|
|
x
|
|
Share Data:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted-average common shares outstanding
|
77,110
|
|
|
77,062
|
|
|
76,675
|
|
|
76,533
|
|
|
76,494
|
|
|
|
Weighted-average diluted common shares outstanding
|
77,934
|
|
|
77,806
|
|
|
77,417
|
|
|
76,967
|
|
|
76,819
|
|
|
|
Common shares issued (period end)
|
78,121
|
|
|
78,101
|
|
|
78,108
|
|
|
77,982
|
|
|
77,993
|
|
|
|
Common shares outstanding (period end)
|
78,121
|
|
|
78,069
|
|
|
78,049
|
|
|
77,708
|
|
|
77,680
|
|
|
|
Performance Ratio:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Return on average common equity
|
11.27
|
%
|
|
11.88
|
%
|
|
10.48
|
%
|
|
10.28
|
%
|
|
10.43
|
%
|
|
|
Return on average assets
|
1.09
|
%
|
|
1.14
|
%
|
|
1.00
|
%
|
|
0.96
|
%
|
|
0.96
|
%
|
|
|
Return on average tangible common equity (1)(2)
|
12.27
|
%
|
|
12.97
|
%
|
|
11.50
|
%
|
|
11.33
|
%
|
|
11.55
|
%
|
|
|
Net interest margin (1)(2)
|
3.23
|
%
|
|
3.21
|
%
|
|
3.23
|
%
|
|
3.18
|
%
|
|
3.18
|
%
|
|
|
Fee revenue as a percent of total revenue (1)
|
20.80
|
%
|
|
21.11
|
%
|
|
19.24
|
%
|
|
19.61
|
%
|
|
20.72
|
%
|
|
|
Non-interest income to average assets
|
0.83
|
%
|
|
0.84
|
%
|
|
0.76
|
%
|
|
0.76
|
%
|
|
0.81
|
%
|
|
|
Non-interest expense to average assets
|
2.09
|
%
|
|
2.10
|
%
|
|
2.19
|
%
|
|
2.16
|
%
|
|
2.07
|
%
|
|
|
Net overhead ratio (1)
|
1.27
|
%
|
|
1.26
|
%
|
|
1.43
|
%
|
|
1.40
|
%
|
|
1.26
|
%
|
|
|
Efficiency ratio (1)(2)
|
52.51
|
%
|
|
52.64
|
%
|
|
55.79
|
%
|
|
55.74
|
%
|
|
53.02
|
%
|
|
|
Balance Sheet Ratios:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans to deposits (period end) (3)
|
89.87
|
%
|
|
91.02
|
%
|
|
91.91
|
%
|
|
88.60
|
%
|
|
87.97
|
%
|
|
|
Average interest-earning assets to average interest-bearing liabilities
|
145.51
|
%
|
|
143.72
|
%
|
|
143.43
|
%
|
|
144.87
|
%
|
|
140.72
|
%
|
|
|
Capital Ratios (period end):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total risk-based capital (1)
|
13.18
|
%
|
|
13.41
|
%
|
|
13.39
|
%
|
|
13.30
|
%
|
|
13.48
|
%
|
|
|
Tier 1 risk-based capital (1)
|
11.12
|
%
|
|
11.24
|
%
|
|
11.19
|
%
|
|
11.08
|
%
|
|
11.05
|
%
|
|
|
Tier 1 leverage ratio (1)
|
10.70
|
%
|
|
10.63
|
%
|
|
10.60
|
%
|
|
10.37
|
%
|
|
10.32
|
%
|
|
|
Tier 1 common equity to risk-weighted assets (1)(2)(4)
|
9.38
|
%
|
|
9.42
|
%
|
|
9.33
|
%
|
|
9.19
|
%
|
|
9.11
|
%
|
|
|
Tangible common equity to tangible assets (1)(2)
|
8.84
|
%
|
|
8.94
|
%
|
|
8.74
|
%
|
|
8.57
|
%
|
|
8.49
|
%
|
|
|
Total equity to total assets
|
9.45
|
%
|
|
9.57
|
%
|
|
9.39
|
%
|
|
9.24
|
%
|
|
9.18
|
%
|
|
|
|
|
(1)
|
Refer to Glossary of Terms for definition.
|
|
(2)
|
This is a non-U.S. GAAP financial measure. Refer to "Non-U.S. GAAP Financial 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)
|
For purposes of our presentation, we calculate this ratio under currently effective requirements and without giving effect to the final Basel III capital rules adopted and issued by the Federal Reserve Board in July 2013, which are effective January 1, 2014 with compliance required January 1, 2015.
|
|
Selected Financial Data (continued)
|
|
(Dollars in thousands)
|
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
3Q14
|
|
2Q14
|
|
1Q14
|
|
4Q13
|
|
3Q13
|
|
Additional Selected Information:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Decrease (increase) credit valuation adjustment on capital markets derivatives (1)
|
$
|
486
|
|
|
$
|
(250)
|
|
|
$
|
(66)
|
|
|
$
|
619
|
|
|
$
|
(521)
|
|
|
Salaries and employee benefits:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Salaries and wages
|
$
|
26,178
|
|
|
$
|
25,671
|
|
|
$
|
24,973
|
|
|
$
|
23,971
|
|
|
$
|
23,639
|
|
|
Share-based costs
|
3,872
|
|
|
3,892
|
|
|
3,685
|
|
|
3,316
|
|
|
3,261
|
|
|
Incentive compensation and commissions
|
12,294
|
|
|
10,493
|
|
|
8,244
|
|
|
11,711
|
|
|
10,753
|
|
|
Payroll taxes, insurance and retirement costs
|
4,077
|
|
|
4,349
|
|
|
7,718
|
|
|
3,577
|
|
|
3,707
|
|
|
Total salaries and employee benefits
|
$
|
46,421
|
|
|
$
|
44,405
|
|
|
$
|
44,620
|
|
|
$
|
42,575
|
|
|
$
|
41,360
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Provision (release) for unfunded commitments
|
$
|
481
|
|
|
$
|
(339)
|
|
|
$
|
496
|
|
|
$
|
1,019
|
|
|
$
|
(1,346)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Assets under management and administration (AUMA) (1)
|
$
|
6,478,845
|
|
|
$
|
6,361,560
|
|
|
$
|
6,036,381
|
|
|
$
|
5,731,980
|
|
|
$
|
5,570,614
|
|
|
Custody assets included in AUMA
|
$
|
3,085,861
|
|
|
$
|
2,928,116
|
|
|
$
|
2,663,502
|
|
|
$
|
2,506,291
|
|
|
$
|
2,427,093
|
|
|
|
|
(1)
|
Refer to Glossary of Terms for definition.
|
SOURCE PrivateBancorp, Inc.