PrivateBancorp 8K Reports Third Quarter 2008 Results | PVTB 27 Oct 08

Exhibit 99.1

For further information:
Media Contact:
Amy Yuhn
Director of Communications
312-564-1378
ayuhn@theprivatebank.com

Investor Relations Contact:
Dennis Klaeser
Chief Financial Officer
312-683-7112
dklaeser@pvtb.com

For Immediate Release

PrivateBancorp Reports Third Quarter 2008 Results

Revenue Growth Remains Strong and Expenses Moderate

	•		Revenue grew 23 percent over second quarter 2008.

	•		Client deposits grew 14 percent during the third quarter.

	•		Loans grew 16 percent during the third quarter.

	•		Efficiency ratio improved to 72 percent compared to 96 percent in the prior quarter.

CHICAGO, October 27, 2008 — PrivateBancorp, Inc. (NASDAQ: PVTB) today reported a net loss for the third quarter 2008 of $7.3 million, or $0.23 per diluted share, compared to net income of $9.2 million, or $0.42 per diluted share, for the third quarter 2007. The net loss for the nine months ended September 30, 2008, was $29.5 million, or $1.04 per diluted share, compared to net income of $27.0 million, or $1.23 per diluted share for the prior-year period.

The Company recorded significant increases in revenue, client deposits and loans, and the number of new client relationships grew during the third quarter. The third quarter net loss was primarily attributed to an increase in the loan loss provision and expenses associated with the implementation of the previously announced Strategic Growth Plan.

“Despite these unprecedented times in our industry, PrivateBancorp continues to

generate strong performance in key measures, including revenue, loan and deposit growth,” said Larry D. Richman, President and Chief Executive Officer, PrivateBancorp, Inc. “We remain confident in our ability to continue delivering on our Strategic Growth Plan despite market conditions. In the third quarter, we saw positive signs that we are achieving the operating leverage expected from the execution of our Strategic Growth Plan. The challenging credit environment, including higher loan loss provisions and charge-offs, certainly slowed our financial progress. We believe that if we remain focused on building deep and lasting relationships, we will maintain the positive momentum we’ve achieved since launching the Strategic Growth Plan a year ago.”

Execution of the Strategic Growth Plan

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

	•		The Company continues to selectively and deliberately grow by developing relationships with clients that it knows and understands. In this particular market, there are opportunities that the Company has been able to capitalize on, given its relationship-based philosophy. Additionally, cross-selling remains an important part of the Company’s business model as it continues to diversify its fee income.

	•		During the third quarter, the Company hired key Managing Directors to support its operations and infrastructure. The rate of new hiring moderated substantially in the third quarter compared to the first half of the year.

	•		Strong revenue growth, moderate hiring, and other expense management, led to a material improvement in the efficiency ratio, which decreased to 71.57 percent from 95.65 percent at the end of the second quarter.

	•		Loans grew $1.0 billion during the quarter, in line with the Company’s expectations and the guidance the Company gave in the second quarter of 2008. Client deposits grew $615.4 million, or 14 percent, during the quarter, exceeding the Company’s goal to fund a substantial portion of loan growth with client deposits.

	•		The higher provision for loan losses in the third quarter negatively affected net

income. The majority of the provision is attributable to deteriorating credit quality in a portion of the Company’s legacy loan portfolio and the remainder of the provision is attributable to the third quarter loan growth resulting from the successful execution of the Strategic Growth Plan.

Management continues to keep its focus on certain key performance indicators – revenue, deposit and loan growth, asset quality, operating efficiency and profitability, as well as selective client acquisition – in order to enhance stockholder value.

Balance Sheet

Total assets increased 81 percent to $9.0 billion at September 30, 2008, from $5.0 billion at December 31, 2007. Total loans increased 78 percent to $7.4 billion at September 30, 2008, from $4.2 billion at December 31, 2007. Commercial loans, including commercial and industrial and owner-occupied commercial real estate loans, continue to be the fastest-growing segment of the loan portfolio and increased to $3.5 billion, or 46 percent of the Company’s total loans, from $1.3 billion, or 32 percent of total loans, at the end of 2007. Commercial real estate loans decreased to 33 percent of the Company’s total loans at the end of the third quarter, compared to 38 percent of total loans at December 31, 2007. Management believes that on a percentage basis, the portfolio is diversified, which has resulted in a more preferred loan mix relative to the end of 2007.

Total deposits increased 98 percent to $7.4 billion at September 30, 2008, from $3.8 billion at December 31, 2007, with $1.8 billion attributable to an increase in client deposits, which includes $304.4 million in reciprocal CDARS™ deposits. The CDARS deposit program is a deposit services arrangement that achieves FDIC deposit insurance for jumbo deposit relationships. Client deposits were $5.0 billion, or 67 percent, of total deposits at the end of the third quarter. During the quarter, the Company facilitated its deposit growth by aggressively pursuing deposits from existing and new clients, increasing institutional and municipal deposits, expanding its business DDA account balances through its enhanced treasury management services, and continuing implementation of the CDARS deposit program.

The Company continues to enhance its suite of deposit products and treasury

management services and in the third quarter average non-interest-bearing deposits grew to $547.3 million from $409.3 million at the end of the second quarter 2008 and from $302.9 million at the end of 2007.

Funds borrowed, which include federal funds purchased, FHLB advances, borrowings under the Company’s credit facility, and convertible senior notes, increased to $592.2 million at September 30, 2008, from $560.8 million at December 31, 2007. Junior subordinated deferrable-interest debentures increased to $244.8 million from $101.0 million at December 31, 2007, due to the issuance of $143.8 million of Trust Preferred securities during the second quarter. During the third quarter, the Company entered into a new $20.0 million senior holding company credit facility and a bank-level sub-debt facility of $120.0 million, of which $100.0 million was drawn at quarter end.

The Company’s investment securities portfolio increased to $918.3 million at September 30, 2008, from $538.7 million at December 31, 2007. The Company’s securities portfolio is primarily comprised of U.S. government agency backed mortgage pools, agency collateralized mortgage obligations, and municipal bonds. The Company does not own Freddie Mac or Fannie Mae preferred stock or sub-debt obligations, nor does it own any sub-prime mortgage-backed securities.

Revenue Growth

Revenue grew 23 percent over the second quarter 2008 to $65.8 million from $53.5 million, reflecting an increase in net interest income and non-interest income.

Net interest income totaled $53.2 million in the third quarter 2008, compared to $43.1 million in the second quarter 2008, an increase of 23 percent, and $32.3 million for the third quarter 2007, an increase of 65 percent. Net interest margin (on a tax equivalent basis) decreased to 2.72 percent for the third quarter 2008 compared to 2.77 percent for the second quarter 2008 and 3.16 percent for the third quarter 2007. Net interest margin declined throughout 2008 due to continued decreases in the prime and LIBOR rates of interest, the impact of non-accruing loans on interest income, and the increasing cost of available funding sources. A portion of this

increased funding cost resulted from the issuance of $143.8 million of 10 percent trust preferred securities during the second quarter 2008.

The Company is committed to diversifying its fee-based revenue and, in the third quarter 2008, non-interest income, excluding securities gains, increased 26 percent to $11.5 million, compared to $9.1 million in the second quarter 2008 and $6.4 million in the third quarter 2007. Fee income from the Company’s Treasury Management and Capital Markets groups contributed a combined $4.3 million in the third quarter, compared to $2.2 million in the second quarter 2008 and $132,000 in the third quarter 2007. Banking and other services income increased to $2.0 million at the end of the third quarter 2008 from $679,000 at the end of the third quarter 2007, comprised mostly of letter of credit fees.

The PrivateWealth Group’s assets under management were $3.4 billion at September 30, 2008, slightly above $3.3 billion at June 30, 2008 and September 30, 2007. Net additions to existing and new accounts during the third quarter 2008 more than offset decreases in assets under management related to market performance. The PrivateWealth Group’s fee revenue declined to $4.1 million in the third quarter 2008, from $4.4 million in the second quarter 2008, which was slightly higher than $4.0 million in the third quarter 2007.

Credit Quality

During the third quarter 2008, the provision for loan losses increased to $30.2 million from $23.0 million in the second quarter 2008 and $2.4 million in the third quarter 2007. The increase is attributable to an increase in non-performing loans and loans charged off during the quarter, the substantial loan growth the Company continues to experience and deteriorating market conditions. Non-performing assets to total assets were 1.18 percent at September 30, 2008, compared to 0.98 percent at June 30, 2008, and 0.97 percent at December 31, 2007. The Company had $106.5 million in total non-performing assets at September 30, 2008, compared to $73.1 million at June 30, 2008 and $48.3 million at December 31, 2007. This increase is primarily driven from deterioration in residential development loan exposures in various markets. The Company has not seen meaningful deterioration in credit quality in other major loan types. Each non-performing loan generally is secured and carries personal guaranties.

Of the total $106.5 million in non-performing assets at September 30, 2008, $88.1 million are non-accruing loans, and $18.5 million are Other Real Estate Owned (OREO). The Company had no loans over 90 days past due and accruing. OREO properties are carried at fair value on the Company’s balance sheet. Of total non-performing assets, approximately $80.0 million or 75 percent were related to the residential development sector.

Delinquencies (loans 30-89 days past due and still accruing) were $50.0 million, or 0.67 percent of total loans at September 30, 2008, compared to $30.1 million, or 0.47 percent of total loans at June 30, 2008, and $102.6 million, or 2.46 percent of total loans at December 31, 2007.

Net charge-offs totaled $7.0 million in the third quarter 2008, or an annualized rate of 0.40 percent of average total loans, compared to $6.0 million in the second quarter 2008, or an annualized rate of 0.42 percent of average total loans, and $1.6 million or an annualized rate of 0.17 percent of average total loans, in the prior-year third quarter. Year-to-date, charge-offs were primarily attributable to declining collateral valuations in the residential development sector.

The allowance for loan losses as a percentage of total loans was 1.37 percent at September 30, 2008, compared to 1.23 percent at June 30, 2008 and 1.17 percent at December 31, 2007. In response to the challenging asset quality environment, the Company has taken several steps to effectively and proactively manage its risk exposure including enhancing its risk management infrastructure, moving to monthly executive management review of all residential development loans in all markets, and maintaining appropriate risk-rating assignments. The Company continues to anticipate challenges related to asset quality until the housing environment begins to stabilize.

Expenses

Non-interest expense was $47.1 million in the third quarter 2008, compared to $51.2 million in the second quarter 2008, a decrease of 8 percent, and $23.9 million in the third quarter 2007, an increase of 97 percent. The decrease in non-interest expense in the third quarter 2008

compared to the second quarter 2008 is primarily attributable to a $2.9 million decrease in salaries and benefits expenses and a $1.6 million decrease in professional service fees. The increase from a year ago is reflective of significant increases in compensation expense, deposit insurance, and to a lesser extent marketing, occupancy, and professional fees related to the investment in the Strategic Growth Plan. Included in other non-interest expense for the third quarter 2008 were additional operating expenses and disposition costs related to OREO properties.

Liquidity and Capital Resources

In response to market conditions, the Company enhanced both its liquidity and capital positions during the third quarter. Additionally, the Company experienced strong deposit growth of 14 percent during the quarter that improved its overall liquidity.

As of September 30, 2008, the Company had total risk-based capital ratio of 12.09 percent and Tier 1 risk-based capital ratio of 9.22 percent, substantially exceeding the well-capitalized thresholds of 10 percent and 6 percent, respectively.

We are committed to maintaining our well-capitalized position and continue to evaluate our capital-raising options. As such, we are reviewing the Treasury Department’s Troubled Asset Relief Program (TARP) Capital Purchase Program and expect to make a decision on whether to participate prior to the November 14, 2008, deadline.

About PrivateBancorp, Inc.

PrivateBancorp, Inc. is a growing diversified financial services company with 22 offices in nine states and more than $9.0 billion in assets as of September 30, 2008. Through its subsidiaries, PrivateBancorp delivers customized business and personal financial services to middle-market commercial and commercial real estate companies, as well as business owners, executives, entrepreneurs and wealthy families.

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

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

Editor’s Note: Financial highlights attached.

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


	Three Months Ended					Nine Months Ended
	September 30,					September 30,
	2008			2007		2008			2007
Interest Income
Loans, including fees	$	99,408		$	72,299	$	259,734		$	211,917
Federal funds sold and interest-bearing deposits		217			259		658			736
Securities:
Taxable		8,161			3,450		17,903			10,633
Exempt from federal income taxes		2,027			2,345		6,453			7,037

Total Interest Income		109,813			78,353		284,748			230,323

Interest Expense
Deposits:
Interest-bearing demand		383			475		1,230			1,508
Savings and money market		12,785			17,904		37,302			51,633
Brokered and other time		33,598			21,732		89,912			62,746
Funds borrowed		4,634			4,350		14,141			13,306

Junior subordinated deferrable interest debentures held by trusts that issued guaranteed capital debt securities		5,258			1,604		9,587			4,756

Total Interest Expense		56,658			46,065		152,172			133,949

Net Interest Income		53,155			32,288		132,576			96,374
Provision for loan losses		30,173			2,399		70,329			6,763

Net Interest Income after Provision for Loan Losses		22,982			29,889		62,247			89,611


Non-interest Income
The PrivateWealth Group fee revenue		4,059			4,029		12,828			11,878
Mortgage banking income		776			1,157		3,535			3,700
Capital market product income		3,815			—		6,164			—
Treasury management income		439			132		902			428
Bank owned life insurance		439			403		1,308			1,225
Banking and other services		2,006			679		3,656			2,491
Net securities gains		180			366		1,280			348

Total Non-interest Income		11,714			6,766		29,673			20,070

Non-interest Expense
Salaries and employee benefits		28,895			13,083		88,459			39,546
Occupancy expense, net		4,364			3,336		12,556			9,286
Professional fees		3,374			2,109		10,684			5,434
Investment manager expenses		829			857		2,608			2,507
Marketing		2,083			1,058		7,614			3,676
Data processing		1,554			1,039		3,942			2,924
Postage, telephone, and delivery		575			409		1,663			1,224
Office supplies and printing		275			221		988			722
Amortization of intangibles		241			241		896			726
Insurance		2,460			452		5,067			1,166
Other non-interest expense		2,435			1,119		6,745			3,388

Total Non-interest Expense		47,085			23,924		141,222			70,599


Minority interest expense		86			100		256			285

Income Before Income Taxes		(12,475	)		12,631		(49,558	)		38,797
Income tax (benefit) provision		(5,211	)		3,466		(20,070	)		11,845

Net (loss) income		(7,264	)		9,165		(29,488	)		26,952

Preferred stock dividends		146			—		400			—

Net (loss) income available to Common Shareholders	$	(7,410	)	$	9,165	$	(29,888	)	$	26,952


Weighted Average Common Shares Outstanding		31,634			21,223		28,822			21,246
Diluted Average Common Shares Outstanding		31,634			21,819		28,822			21,888

Per Common Share Information
Basic	$	(0.23	)	$	0.43	$	(1.04	)	$	1.27
Diluted	$	(0.23	)	$	0.42	$	(1.04	)	$	1.23
Dividends	$	0.075		$	0.075	$	0.225		$	0.225


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

Note 2:		Diluted shares are equal to Basic shares for the three and nine months ended September 30, 2008 due to the net loss. The calculation of diluted earnings per share results in anti-dilution.

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


	3Q08			2Q08			1Q08			4Q07			3Q07
Interest Income
Loans, including fees	$	99,408		$	84,231		$	76,113		$	71,062		$	72,299
Federal funds sold and interest-bearing deposits		217			207			246			275			259
Securities:
Taxable		8,161			5,456			4,286			3,951			3,450
Exempt from federal income taxes		2,027			2,181			2,244			2,313			2,345

Total Interest Income		109,813			92,075			82,889			77,601			78,353

Interest Expense
Deposits:
Interest-bearing demand		383			425			422			451			475
Savings and money market		12,785			11,303			13,221			16,813			17,904
Brokered and other time		33,598			29,950			26,358			20,894			21,732
Funds borrowed		4,634			4,523			4,996			6,087			4,350

Junior subordinated deferrable interest debentures held by trusts that issued guaranteed capital debt securities		5,258			2,758			1,572			1,608			1,604

Total Interest Expense		56,658			48,959			46,569			45,853			46,065

Net Interest Income		53,155			43,116			36,320			31,748			32,288
Provision for loan losses		30,173			23,024			17,133			10,171			2,399

Net Interest Income after Provision for Loan Losses		22,982			20,092			19,187			21,577			29,889


Non-interest Income
The PrivateWealth Group fee revenue		4,059			4,350			4,419			4,310			4,029
Mortgage banking income		776			997			1,530			828			1,157
Capital market product income		3,815			1,959			391			—			—
Treasury management income		439			279			184			151			132
Bank owned life insurance		439			437			432			431			403
Banking and other services		2,006			1,119			746			484			679
Net securities gains		180			286			814			—			366

Total Non-interest Income		11,714			9,427			8,516			6,204			6,766

Non-interest Expense
Salaries and employee benefits		28,895			31,817			27,749			31,673			13,083
Occupancy expense, net		4,364			4,338			3,845			3,918			3,336
Professional fees		3,374			5,005			2,311			6,442			2,109
Investment manager expenses		829			812			968			925			857
Marketing		2,083			2,700			2,828			2,422			1,058
Data processing		1,554			1,168			1,220			1,282			1,039
Postage, telephone, and delivery		575			546			541			483			409
Office supplies and printing		275			371			350			362			221
Amortization of intangibles		241			422			234			240			241
Insurance		2,460			1,627			870			772			452
Other non-interest expenses		2,435			2,401			2,016			3,291			1,119

Total Non-interest Expense		47,085			51,207			42,932			51,810			23,924


Minority interest expense		86			101			68			78			100

Income Before Income Taxes		(12,475	)		(21,789	)		(15,297	)		(24,107	)		12,631
Income tax (benefit) provision		(5,211	)		(8,494	)		(6,364	)		(8,962	)		3,466

Net (loss) income		($7,264	)		($13,295	)		($8,933	)		($15,145	)	$	9,165

Preferred stock dividends		146			146			107			107			—

Net (loss) income available to Common Shareholders		($7,410	)		($13,441	)		($9,040	)		($15,252	)	$	9,165


Weighted Average Common Shares Outstanding		31,634			27,914			26,886			22,537			21,223
Diluted Average Common Shares Outstanding		31,634			27,914			26,886			22,537			21,819

Per Common Share Information
Basic	$	(0.23	)	$	(0.48	)	$	(0.34	)	$	(0.68	)	$	0.43
Diluted	$	(0.23	)	$	(0.48	)	$	(0.34	)	$	(0.68	)	$	0.42
Dividends	$	0.075		$	0.075		$	0.075		$	0.075		$	0.075


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

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

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


	09/30/08			06/30/08			03/31/08			12/31/07			09/30/07
	unaudited			unaudited			unaudited			audited			unaudited
Assets
Cash and due from banks	$	76,314		$	76,924		$	54,576		$	51,331		$	52,922
Fed funds sold and other short-term investments		363,991			41,034			22,226			13,220			22,117

Total cash and cash equivalents		440,305			117,958			76,802			64,551			75,039

Available-for-sale securities, at fair value		899,301			712,158			575,798			526,271			487,266
Non-marketable equity investments		18,958			13,807			13,157			12,459			10,682
Loans held for sale		6,736			10,988			9,659			19,358			4,262

Loans net of unearned discount		7,441,137			6,417,026			5,136,066			4,177,795			3,737,523
Allowance for loan losses		(102,223	)		(79,021	)		(61,974	)		(48,891	)		(42,113	)

Net loans		7,338,914			6,338,005			5,074,092			4,128,904			3,695,410


Goodwill		95,045			95,045			93,341			93,341			93,357
Premises and equipment, net		29,650			27,513			26,356			25,600			24,844
Accrued interest receivable		32,466			27,809			25,287			24,144			23,422
Bank owned life insurance		45,438			44,999			44,561			44,130			43,699
Other assets		104,650			90,656			74,591			51,447			40,245

Total Assets		9,011,463			7,478,938			6,013,644			4,990,205			4,498,226


Liabilities
Demand deposits:
Non-interest bearing	$	601,653		$	548,710		$	341,779		$	299,043		$	285,003
Interest bearing		164,318			164,541			159,003			157,761			134,428
Savings and money market deposit accounts		2,407,641			2,086,929			1,663,275			1,594,172			1,577,930
Brokered deposits		2,749,735			1,889,401			1,396,930			542,470			500,296
Other time deposits		1,526,601			1,466,369			1,453,479			1,167,692			1,090,405

Total deposits		7,449,948			6,155,950			5,014,466			3,761,138			3,588,062


Funds borrowed		592,194			369,570			359,099			560,809			464,021
Junior subordinated deferrable interest debentures held by trusts that issued guaranteed capital debt securities		244,793			244,793			101,033			101,033			101,033
Accrued interest payable		31,959			30,039			17,670			16,134			13,968
Other liabilities		52,449			33,087			28,169			50,298			12,742

Total Liabilities	$	8,371,343		$	6,833,439		$	5,520,437		$	4,489,412		$	4,179,826


Stockholders’ Equity
Preferred stock		58,070			58,070			41,000			41,000			—
Common stock		32,147			31,944			27,289			27,225			21,612
Treasury stock		(15,626	)		(14,150	)		(13,925	)		(13,559	)		(13,475	)
Additional paid-in-capital		474,354			467,294			314,961			311,989			160,178
Retained earnings		89,248			99,177			115,016			126,204			143,585
Accumulated other comprehensive income		1,927			3,164			8,866			7,934			6,500

Total Stockholders’ Equity	$	640,120		$	645,499		$	493,207		$	500,793		$	318,400


Total Liabilities and Stockholders’ Equity	$	9,011,463		$	7,478,938		$	6,013,644		$	4,990,205		$	4,498,226


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

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


	3Q08			2Q08			1Q08			4Q07			3Q07
Selected Statement of Income Data:
Net interest income	$	53,155		$	43,116		$	36,320		$	31,748		$	32,288
Net revenue (1)	$	65,787		$	53,535		$	45,862		$	39,009		$	40,126
(Loss) income before taxes	$	(12,475	)	$	(21,789	)	$	(15,297	)	$	(24,107	)	$	12,631
Net (loss) income	$	(7,264	)	$	(13,295	)	$	(8,933	)	$	(15,145	)	$	9,165

Per Common Share Data:
Basic earnings per share	$	(0.23	)	$	(0.48	)	$	(0.34	)	$	(0.68	)	$	0.43
Diluted earnings per share (2)	$	(0.23	)	$	(0.48	)	$	(0.34	)	$	(0.68	)	$	0.42
Dividends	$	0.075		$	0.075		$	0.075		$	0.075		$	0.075
Book value (period end)	$	17.32		$	17.65		$	15.97		$	16.38		$	14.59
Tangible book value (period end) (3)	$	14.31		$	14.61		$	12.46		$	12.82		$	10.01
Market value (close)	$	41.66		$	30.38		$	31.47		$	32.65		$	34.84
Diluted earnings multiple (4)		(44.83	) x		(15.78	) x		(23.08	) x		(12.10	) x		20.91	x
Book value multiple		2.41	x		1.72	x		1.97	x		1.93	x		2.36	x

Share Data:
Weighted Average Common Shares Outstanding		31,634			27,914			26,886			22,537			21,223
Diluted Average Common Shares Outstanding (2)		31,634			27,914			26,886			22,537			21,819
Common shares issued (at period end)		34,028			33,656			28,686			28,439			22,183
Common shares outstanding (at period end)		33,604			33,275			28,311			28,075			21,821

Performance Ratios:
Return on average total assets		-0.35	%		-0.80	%		-0.66	%		-1.30	%		0.82	%
Return on average total equity		-4.59	%		-9.89	%		-7.81	%		-16.61	%		11.80	%
Dividend payout ratio		-35.24	%		-18.93	%		-24.23	%		-14.30	%		17.84	%
Fee revenue as a percent of total revenue (5)		17.83	%		17.49	%		17.49	%		16.35	%		16.54	%
Non-interest income to average assets		0.57	%		0.57	%		0.63	%		0.53	%		0.60	%
Non-interest expense to average assets		2.28	%		3.07	%		3.18	%		4.45	%		2.13	%
Net overhead ratio (6)		1.71	%		2.50	%		2.55	%		3.92	%		1.53	%
Efficiency ratio (7)		71.57	%		95.65	%		93.61	%		132.81	%		59.62	%

Selected Financial Condition Data:
Client deposits (8)	$	5,006,397		$	4,390,998		$	3,697,598		$	3,220,464		$	3,087,766
The Private Wealth Group assets under management	$	3,354,212		$	3,305,477		$	3,314,461		$	3,361,171		$	3,281,576

Balance Sheet Ratios:
Loans to Deposits (period end)		99.88	%		104.24	%		102.42	%		111.08	%		104.17	%

Average interest-earning assets to average interest-bearing liabilities		113.28	%		111.69	%		112.86	%		111.32	%		110.40	%

Capital Ratios (period end):
Total equity to total assets		7.10	%		8.63	%		8.20	%		10.04	%		7.08	%
Total risk-based capital ratio		12.09	%		13.47	%		11.54	%		14.20	%		10.60	%
Tier-1 risk-based capital ratio		9.22	%		10.82	%		9.00	%		11.39	%		8.07	%
Leverage ratio		9.28	%		11.46	%		9.13	%		10.93	%		7.20	%
Tangible capital ratio		6.05	%		7.38	%		6.66	%		8.20	%		4.96	%


(1)		The sum of net interest income, on a tax equivalent basis, plus non-interest income.

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

(3)		Tangible book value is total capital less goodwill and other intangibles divided by outstanding shares at end of period.

(4)		Period end closing stock price divided by annualized quarterly earnings for the quarter then ended.

(5)		Represents non-interest income less securities gains as a percentage of the sum of net interest income and non-interest income less securities gains.

(6)		Non-interest expense less non-interest income divided by average total assets.

(7)		Non-interest expense divided by the sum of net interest income, on a tax equivalent basis, plus non-interest income.

(8)		Client deposits are equal to total deposits less brokered deposits plus reciprocal CDARS^TM.

PrivateBancorp, Inc.
Asset Quality
Unaudited
(dollars in thousands)


		3Q08			2Q08			1Q08			4Q07			3Q07
Credit Quality Key Ratios:
Net charge-offs to average loans			0.40	%		0.42	%		0.35	%		0.35	%		0.17	%
Total non-performing loans to total loans			1.18	%		0.91	%		0.91	%		0.93	%		0.77	%
Total non-performing assets to total assets			1.18	%		0.98	%		1.10	%		0.97	%		0.80	%
Nonaccrual loans to:
total loans			1.18	%		0.89	%		0.91	%		0.93	%		0.69	%
total assets			0.98	%		0.77	%		0.77	%		0.78	%		0.57	%
Allowance for loan losses to:
total loans			1.37	%		1.23	%		1.21	%		1.17	%		1.13	%
non-performing loans			116	%		135	%		133	%		125	%		145	%
nonaccrual loans			116	%		138	%		133	%		125	%		164	%

Non-performing assets:
Loans past due 90 days and accruing		$	0		$	1,180		$	23		$	53		$	3,294
Nonaccrual loans			88,057			57,348			46,517			38,983			25,657
OREO			18,465			14,579			19,346			9,265			7,044

Total non-performing assets		$	106,522		$	73,107		$	65,886		$	48,301		$	35,995


Allowance for Loan Losses Summary
Balance at beginning of period		$	79,021		$	61,974		$	48,891		$	42,113		$	41,280
Provision			30,173			23,024			17,133			10,171			2,399
Loans charged off			7,017			6,097			4,114			3,435			1,648
(Recoveries)			(46	)		(120	)		(64	)		(42	)		(82	)

Balance at end of period		$	102,223		$	79,021		$	61,974		$	48,891		$	42,113


Net loan charge-offs (recoveries):
Commercial		$	1,469		$	1,109		$	1,099		$	752		$	1,077
Construction			2,507			2,555			1,813			1,006			95
Commercial real estate	��		2,349			1,764			481			1,388			295
Residential real estate			46			426			118			—			—
Home equity			50			34			333			—			—
Personal			550			89			206			247			99

Total net loan charge-offs		$	6,971		$	5,977		$	4,050		$	3,393		$	1,566


Loans past due 30-89 days and still accruing by type:
Commercial		$	5,867		$	5,983		$	40,740		$	11,170		$	3,379
Construction			19,113			7,062			35,738			38,407			12,218
Commercial Real Estate			18,473			8,282			47,265			34,366			21,233
Residential Real Estate			3,104			1,121			5,856			9,431			2,833
Personal and Home Equity			3,400			7,631			16,787			9,224			3,248

Total		$	49,957		$	30,079		$	146,386		$	102,598		$	42,911

Loans past due 30-89 days and still accruing as a percent of total loan type:
Commercial			0.17	%		0.22	%		2.20	%		0.85	%		0.32	%
Construction			2.69	%		1.00	%		5.75	%		6.26	%		2.08	%
Commercial Real Estate			0.77	%		0.38	%		2.40	%		2.14	%		1.42	%
Residential Real Estate			0.83	%		0.35	%		2.07	%		3.55	%		1.09	%
Personal and Home Equity			0.69	%		1.65	%		4.05	%		2.41	%		0.92	%

Total			0.67	%		0.47	%		2.85	%		2.46	%		1.15	%

PrivateBancorp, Inc.
Asset Quality by Location
Unaudited
(dollars in thousands)

September 30, 2008


	Non performing		NPLs as % of			Other Real		Non performing		NPAs as % of
	Loans		Total Loans (1)			Estate Owned		Assets		Total Assets (2)
Chicago	$	31,696		0.54	%	$	9,176	$	40,872		0.57	%
St. Louis (3)		12,330		2.93	%		3,438		15,768		2.77	%
Michigan		22,051		2.80	%		1,462		23,513		2.60	%
Georgia		21,980		7.96	%		4,389		26,369		7.03	%
Wisconsin		—		—			—		—		—

Consolidated non-performing assets	$	88,057		1.18	%	$	18,465	$	106,522		1.18	%

December 31, 2007


	Non performing		NPLs as % of			Other Real		Non performing		NPAs as % of
	Loans		Total Loans (1)			Estate Owned		Assets		Total Assets (2)
Chicago	$	11,012		0.39	%	$	2,122	$	13,134		0.39	%
St. Louis (3)		12,413		3.30	%		4,537		16,950		3.51	%
Michigan		5,266		0.88	%		1,466		6,732		0.98	%
Georgia		10,345		3.93	%		1,140		11,485		3.44	%
Wisconsin		—		—			—		—		—

Consolidated non-performing assets	$	39,036		0.93	%	$	9,265	$	48,301		0.97	%


Note:		Non performing loans are defined as loans delinquent > 90 days and non accrual loans. Non performing assets are non performing loans and Other Real Estate owned.


(1)		Non performing loans are presented as a percentage of each entities’ gross loans

(2)		Non performing assets are presented as a percentage of each entities’ total assets

(3)		St. Louis loans and total assets includes Kansas City total loans and assets.

PrivateBancorp, Inc.
Loan Mix
Unaudited
(dollars in thousands)


	09/30/08		06/30/08		03/31/08		12/31/07		09/30/07
Commercial Real Estate		2,049,047	$	1,838,301	$	1,728,783	$	1,386,275	$	1,314,138
Multi-family CRE		353,879		349,220		241,306		217,884		184,093

Total CRE Loans		2,402,926		2,187,521		1,970,089		1,604,159		1,498,231

Commercial and Industrial		2,957,507		2,292,960		1,410,442		827,837		670,106
Owner-Occupied CRE		499,964		451,455		437,587		483,920		370,269

Total Commercial Loans		3,457,471		2,744,415		1,848,029		1,311,757		1,040,375

Residential Real Estate		374,488		318,358		282,257		265,466		260,427
Personal (1)		318,552		296,458		269,848		247,462		218,998
Home Equity		176,094		164,771		144,209		135,483		133,224
Construction		711,606		705,503		621,634		613,468		586,268

Total Loans	$	7,441,137	$	6,417,026	$	5,136,066	$	4,177,795	$	3,737,523


(1)		The personal loan category includes overdrafts.

PrivateBancorp, Inc.
Net Interest Margin
Unaudited
(dollars in thousands)


	Three Months Ended September 30,
	2008								2007⁽¹⁾
	Average								Average
	Balance⁽²⁾			Interest		Rate			Balance⁽²⁾			Interest		Rate

Assets:
Fed funds sold and interest- bearing deposits	$	37,962		$	217		2.25	%	$	15,390		$	259		6.63	%
Securities:
Taxable		683,998			8,161		4.77	%		283,948			3,450		4.86	%
Tax exempt		179,105			2,945		6.58	%		198,148			3,417		6.90	%

Total securities		863,103			11,106		5.14	%		482,096			6,867		5.70	%

Loans:
Commercial, Construction & CRE		6,092,638			88,273		5.72	%		3,108,900			61,612		7.86	%
Residential		373,665			4,972		5.32	%		264,643			4,035		6.10	%
Private Client		474,478			6,163		5.15	%		334,646			6,652		7.89	%

Total Loans (3)		6,940,781			99,408		5.66	%		3,708,189			72,299		7.74	%

Total earning assets	$	7,841,846		$	110,731		5.58	%	$	4,205,675		$	79,425		7.50	%
Allowance for loan losses		(84,808	)							(41,174	)
Cash and dues from banks		101,023								50,613
Other assets		325,291								231,281

Total average assets	$	8,183,352							$	4,446,395


Liabilities:
Interest-bearing demand deposits	$	154,022		$	383		0.99	%	$	137,740		$	475		1.37	%
Regular savings deposits		18,006			80		1.76	%		11,979			64		2.12	%
Money market accounts		2,282,822			12,705		2.21	%		1,554,732			17,840		4.55	%
Time deposits		1,537,431			13,243		3.42	%		1,069,765			14,101		5.23	%
Brokered deposits		2,092,609			20,355		3.86	%		588,139			7,631		5.15	%

Total interest-bearing deposits		6,084,890			46,766		3.05	%		3,362,355			40,111		4.73	%
Other borrowings		593,068			4,634		3.06	%		343,820			4,350		4.95	%
Junior subordinated deferrable interest debentures held by trusts that issued guaranteed capital debt securities		244,793			5,258		8.40	%		101,033			1,604		6.21	%

Total interest-bearing liabilities		6,922,751			56,658		3.24	%		3,807,208			46,065		4.79	%

Non-interest bearing deposits		547,304								299,201
Other liabilities		84,803								32,062
Stockholders’ equity		628,494								307,924

Total average liabilities and stockholders’ equity	$	8,183,352							$	4,446,395

Tax equivalent net interest income (4)				$	54,073							$	33,360

Net interest spread (5)							2.34	%							2.71	%
Effect of non interest-bearing funds							0.38	%							0.45	%

Net interest margin (4) (6)							2.72	%							3.16	%


(1)		Prior period net interest margin computations were modified to conform with the current period presentation.

(2)		Average assets were generally computed using daily balances.

(3)		Non-accrual loans are included in the average balances and the average annualized interest foregone on these loans was approximately $1.0 million for the quarter ended September 30, 2008 compared to approximately $1.1 million in the prior quarter period.

(4)		Reconciliation of the current quarter net interest income to prior quarter :


	Three months Ended September 30,
	2008		2007

Net interest income	$	53,155	$	32,288
Tax equivalent adjustment to net interest income		918		1,072

Net interest income, tax equivalent basis	$	54,073	$	33,360


(5)		Yield on average interest-earning assets less rate on average interest-bearing liabilities.

(6)		Net interest income, on a tax equivalent basis, divided by average interest-earning assets.

PrivateBancorp (PVTB) Inactive 8-KPrivateBancorp Reports Third Quarter 2008 Results