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
312-564-1700
dklaeser@pvtb.com
For Immediate Release
PrivateBancorp Reports Fourth Quarter and Year-End 2008 Results
Significant Charges Taken in Residential Development Portfolio;
Strategic Growth Plan Continues to Generate Positive Results
| • | | The Company reported net charge-offs of $108.8 million in the fourth quarter after a proactive loan review to address credit quality concerns, particularly in the residential development sector. None of the losses reported were from loans originated as part of the Strategic Growth Plan. |
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| • | | Net loss was $62.0 million for the fourth quarter 2008 and $91.5 million for the 12 months ended December 31, 2008. |
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| • | | The Company’s continued well-capitalized position will be bolstered by preliminary approval for $244 million in TARP capital, which will support further execution of the Strategic Growth Plan. |
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| • | | The Strategic Growth Plan resulted in substantial new client growth that generated a 9 percent increase in revenue over third quarter 2008 and an 84 percent increase in revenue year over year. |
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| • | | Client deposits grew $1.0 billion or 20 percent from the third quarter 2008 including significant increases in new business DDA accounts. |
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| • | | Loans increased in the fourth quarter by $595.7 million or 8 percent over the third quarter as the Company continued a pattern of selective client development. |
CHICAGO, January 26, 2009 — PrivateBancorp, Inc. (NASDAQ: PVTB) today reported a net loss for the fourth quarter 2008 of $62.0 million, or $1.96 per diluted share, compared to a net loss of $15.1 million, or $0.68 per diluted share, for the fourth quarter 2007.
The net loss for the fiscal year ended December 31, 2008, was $91.5 million, or $3.11 per diluted share, compared to net income of $11.8 million, or $0.53 per diluted share, for the 2007 fiscal year.
“We knew that 2008 would be a challenging year but we could not predict the magnitude of the impact from the unprecedented downturn in the economy,” said Larry D. Richman, President and Chief Executive Officer, PrivateBancorp, Inc. “While we are pleased with the outcomes of the first full year under our Strategic Growth Plan, the economic environment caused significant weakness in our legacy loan portfolio. During the fourth quarter, we undertook a comprehensive loan review, which resulted in substantial charge-offs. We believe it was prudent to proactively address these credit quality issues given the rapid deterioration in the market.
“Throughout 2008 we strengthened our capital base and made substantial progress implementing our Strategic Growth Plan,” Richman added. “We added a large number of new client relationships that resulted in almost $4 billion in new loans, additional client deposits of nearly $3 billion and almost $15 million in new fee income. Without question, the economic environment will remain a challenge in 2009. Yet we are confident we have significant momentum and we will continue to drive toward improving operating leverage and achieving positive earnings. I believe over the long-term, the market opportunities are considerable and we will continue to achieve the objectives of the Strategic Growth Plan.”
Comprehensive Loan Review and Credit Quality
As a result of the rapid deterioration in economic conditions, in the fourth quarter the Company undertook a comprehensive review of all residential development loans and all underperforming assets. The intent of the review was to identify inherent losses where cash flow and guarantor support indicated likely non-performance and where losses from deteriorating asset values were evident. The Company believes the review was prudent in light of market conditions, particularly in the residential sector in Georgia and Michigan. The actions proactively addressed the deterioration in the loan portfolio and the Company believes the result is reduced balance sheet risk.
The fourth quarter loan loss provision was $119.3 million and resulted from $108.8 million net charge-offs (an annualized rate of 5.49 percent of average total loans) and $10.5 million in additional loan-loss provision primarily related to growth in the loan portfolio. Of the fourth quarter net charge-offs, $86.2 million, or 79.2 percent, were related to the residential development portfolio. Total charge-offs for the year were $125.8 million, or a net charge-off ratio of 2.00 percent, compared to $6.1 million, or a net charge-off ratio of 0.17 percent, for the year ended December 31, 2007.
None of the losses reported were from loans originated since the commencement of the Strategic Growth Plan in the fourth quarter 2007. These loans continue to perform as expected with no significant payment past dues.
In addition, the Company strengthened its allowance for loan losses in recognition of the weakened credit climate expected to remain through at least 2009. The allowance for loan losses as a percentage of total loans was 1.40 percent at December 31, 2008, compared to 1.37 percent at September 30, 2008 and 1.17 percent at December 31, 2007. The allowance for loan losses as a percent of non-performing loans decreased to 85 percent in the fourth quarter 2008 from 116 percent in the third quarter 2008 and 125 percent in the fourth quarter 2007. The lower ratio is warranted given that a significant portion of these loans were charged down to fair value.
After giving effect to these charge-offs, as of December 31, 2008, the Company had approximately $400 million in residential development loans remaining, with 59 percent in single family homes/condominiums built for sale, which is held as construction exposure, and 41 percent in land (developed and undeveloped), which is held as commercial real estate exposure.
The Company made a strategic decision in early 2008 to curtail any new production in the residential development sector and will allow a substantial portion of this portfolio to wind down as residential development lending is not a core component of the Strategic Growth Plan.
Non-performing assets to total assets were 1.55 percent at December 31, 2008, compared to 1.18 percent at September 30, 2008, and 0.97 percent at December 31, 2007. The Company had $155.7 million in total non-performing assets at December 31, 2008, compared to $106.5 million at September 30, 2008, and $48.3 million at December 31, 2007. Non-accruing loans totaled $131.9 million and other real estate owned (OREO) was $23.8 million. Approximately $105.7 million, or 68 percent of the non-performing assets, were related to the residential development sector.
Delinquencies (loans 30-89 days past due and still accruing) were $35.4 million, or 0.44 percent, of total loans at December 31, 2008, compared to $50.0 million, or 0.67 percent, of total loans at September 30, 2008, and $102.6 million, or 2.46 percent, of total loans at December 31, 2007. The Company had no loans over 90 days past due and accruing.
Execution of the Strategic Growth Plan
During the fourth quarter, the Company continued to execute on fundamental elements of its Strategic Growth Plan:
| | • | | The Company’s loan portfolio increased in the fourth quarter by more than $700 million, or $595.7 million after net charges of $108.8 million, compared to an increase of $1.0 billion in the third quarter, through continued selective strategic growth. |
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| | • | | Client deposits grew $1.0 billion, or 20 percent, during the fourth quarter, compared to $615.4 million, or 14 percent, in the third quarter 2008, once again supporting the Company’s goal to fund a substantial portion of loan growth with client deposits. Quarterly average balances of business DDA accounts, an important measure of new client growth, grew by 26 percent over the third quarter. |
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| | • | | Revenue grew 9 percent to $71.7 million in the fourth quarter from $65.8 million in the third quarter, with continued strong new fee revenue from the Treasury Management and Capital Markets groups. |
| | • | | After a year of significant investment in personnel for client development and support infrastructure, hiring related to the Strategic Growth Plan is largely complete. |
Progress against Strategic Growth Plan objectives is measured by key performance indicators including revenue, deposit and loan growth, asset quality, operating efficiency and profitability, as well as selective client acquisition. Despite the current economic challenges, the Company believes attractive market opportunities continue to exist, and it will selectively pursue those that drive long-term growth.
The Company makes loans based on relationships that are well-tested and analyzed. All loans are subject to a selective screening and approval process including downside stress testing and consideration of the economic climate. All production is originated to hold on the balance sheet.
Balance Sheet
Total assets increased over 100 percent to $10.0 billion at December 31, 2008, from $5.0 billion at December 31, 2007. Total loans increased 92 percent to $8.0 billion at December 31, 2008, from $4.2 billion at December 31, 2007. Commercial loans increased to $4.0 billion, or 50 percent of the Company’s total loans, from $1.3 billion, or 32 percent of total loans, at the end of 2007. Commercial loans include commercial and industrial and owner-occupied commercial real estate loans and continue to be the fastest-growing segment of the loan portfolio. Commercial real estate loans decreased to 30 percent of the Company’s total loans at the end of the fourth quarter, compared to 38 percent of total loans at December 31, 2007. Management believes further diversifying the portfolio has resulted in a more preferred loan mix relative to the end of 2007.
Total deposits increased 113 percent to $8.0 billion at December 31, 2008, from $3.8 billion at December 31, 2007. Approximately $2.8 billion of the increase in total deposits was attributable to an increase in client deposits, and includes $679.0 million in client CDARS® deposits. Brokered deposits (excluding client CDARS) were 25 percent of total deposits in the fourth quarter 2008, 33 percent of total deposits in the previous quarter and 14 percent of total deposits as of December 31, 2007. Client deposits were $6.0 billion, or 75 percent, of total deposits at the end of the fourth quarter. During the quarter, the Company facilitated its deposit growth by aggressively pursuing deposits from existing and new clients, expanding its business DDA account balances through its enhanced treasury management services, and continuing implementation of the CDARS deposit program.
Funds borrowed, which include federal funds purchased, FHLB advances, borrowings under the Company’s credit facility, and convertible senior notes, increased to $1.0 billion at December 31,
2008, from $560.8 million at December 31, 2007, primarily due to increased FHLB borrowings. Junior subordinated deferrable-interest debentures increased to $244.8 million from $101.0 million at December 31, 2007.
The Company’s investment securities portfolio increased to $1.5 billion at December 31, 2008, from $538.7 million at December 31, 2007. Net unrealized gains in the securities portfolio increased to $44.2 million compared to $12.5 million at the end of 2007. The Company’s securities portfolio is primarily comprised of U.S. government agency backed mortgage pools, agency collateralized mortgage obligations, and investment grade municipal bonds. The Company does not own Freddie Mac or Fannie Mae preferred stock or sub-debt obligations, bank trust preferred securities, nor does it own any sub-prime mortgage-backed securities.
Revenue Growth
Revenue grew 9 percent over the third quarter 2008 to $71.7 million from $65.8 million, reflecting an increase in net interest income.
Net interest income totaled $59.2 million in the fourth quarter 2008, compared to $53.2 million in the third quarter 2008, an increase of 11 percent, and $31.7 million for the fourth quarter 2007, an increase of 86 percent. Net interest margin (on a tax equivalent basis) decreased to 2.62 percent compared to 2.72 percent for the third quarter 2008 and 3.00 percent for the fourth quarter 2007. Net interest margin declined throughout 2008 due to continued decreases in the prime and LIBOR rates of interest as our interest-earning assets repriced more quickly than our interest-bearing liabilities, and the impact of non-accruing loans on interest income.
Non-interest income, excluding securities gains and losses, was $12.4 million, compared to $11.5 million in the third quarter 2008, and $6.2 million in the fourth quarter 2007. The Company continued to experience robust growth in fee income from its Treasury Management and Capital Markets groups. Treasury Management and Capital Markets contributed a combined $5.9 million in new fee income in the fourth quarter 2008, compared to $4.5 million in the third quarter 2008, and $151,000 in the fourth quarter 2007. Banking and other services income decreased to $1.3 million at the end of the fourth quarter 2008 from $1.7 million in the third quarter 2008 and $484,000 at the end of the fourth quarter 2007, comprised mostly of letter of credit fees.
The PrivateWealth Group’s assets under management were $3.3 billion at December 31, 2008, a slight decrease from $3.4 billion at September 30, 2008 and December 31, 2007. Net additions to existing and new accounts during the fourth quarter 2008 nearly offset decreases in assets under management related to market performance. The PrivateWealth Group’s fee revenue was flat at $4.1 million in the fourth quarter 2008 compared to prior quarter, and slightly below the $4.3 million in the fourth quarter 2007.
Expenses
Non-interest expense was $53.9 million in the fourth quarter 2008, compared to $47.1 million in the third quarter 2008, an increase of 14 percent, and $51.8 million in the fourth quarter 2007, an increase of 4 percent. The majority of the increase was due to credit-related actions including write-downs related to other real estate owned; professional fees related to capital raising activities and ongoing professional expenses related to infrastructure development. These factors also contributed to an increase in the efficiency ratio to 75.13 percent in the fourth quarter 2008 from 71.57 percent at the end of the third quarter 2008.
Capital Resources and Liquidity
The Company today announced it has received preliminary approval of a $244 million investment from the U.S. Treasury Department as part of the Capital Purchase Program under the Emergency Economic Stabilization Act of 2008. The TARP capital infusion will support the Company’s lending activity under the Strategic Growth Plan and further enhanced its “well capitalized” status. Since the inception of the Strategic Growth Plan in October 2007, the Company has added $800 million in new regulatory capital, including the TARP capital.
As of December 31, 2008, the Company had total risk-based capital at 10.32 percent and Tier 1 risk-based capital ratio at 7.25 percent, exceeding the well-capitalized thresholds of 10 percent and 6 percent, respectively. With the addition of the TARP capital, the Company’s pro forma total risk-based capital ratio and Tier 1 risk-based capital ratio at December 31, 2008, would have been 12.96 percent and 10.44 percent, respectively.
The Company experienced strong deposit growth of 7 percent during the fourth quarter that improved its overall liquidity. Additionally, the Company increased the size of its securities portfolio to 14 percent of total assets.
About PrivateBancorp, Inc.
PrivateBancorp, Inc. is a growing diversified financial services company with 23 offices in nine states and more than $10 billion in assets as of December 31, 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 continued 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 to continue to increase our allowance for loan losses; additional charges related to asset impairments; 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 | | | Twelve Months Ended | |
| | | December 31, | | | December 31, | |
| | | 2008 | | | 2007 | | | 2008 | | | 2007 | |
Interest Income | | | | | | | | | | | | | | | | |
| Loans, including fees | | $ | 107,370 | | | $ | 71,062 | | | $ | 367,104 | | | $ | 282,979 | |
| Federal funds sold and interest-bearing deposits | | | 488 | | | | 275 | | | | 1,145 | | | | 1,011 | |
| Securities: | | | | | | | | | | | | | | | | |
| Taxable | | | 10,754 | | | | 3,951 | | | | 28,657 | | | | 14,584 | |
| Exempt from federal income taxes | | | 2,025 | | | | 2,313 | | | | 8,477 | | | | 9,350 | |
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Total Interest Income | | | 120,637 | | | | 77,601 | | | | 405,383 | | | | 307,924 | |
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Interest Expense | | | | | | | | | | | | | | | | |
| Deposits: | | | | | | | | | | | | | | | | |
| Interest-bearing demand | | | 285 | | | | 451 | | | | 1,515 | | | | 1,959 | |
| Savings and money market | | | 11,579 | | | | 16,813 | | | | 48,880 | | | | 68,446 | |
| Brokered and other time | | | 36,405 | | | | 20,894 | | | | 126,316 | | | | 83,640 | |
| Funds borrowed | | | 8,064 | | | | 6,087 | | | | 22,205 | | | | 19,393 | |
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| Junior subordinated deferrable interest debentures held by trusts that issued guaranteed capital debt securities | | | 5,122 | | | | 1,608 | | | | 14,710 | | | | 6,364 | |
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Total Interest Expense | | | 61,455 | | | | 45,853 | | | | 213,626 | | | | 179,802 | |
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Net Interest Income | | | 59,182 | | | | 31,748 | | | | 191,757 | | | | 128,122 | |
| Provision for loan losses | | | 119,250 | | | | 10,171 | | | | 189,579 | | | | 16,934 | |
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Net Interest Income after Provision for Loan Losses | | | (60,068 | ) | | | 21,577 | | | | 2,178 | | | | 111,188 | |
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Non-interest Income | | | | | | | | | | | | | | | | |
| The PrivateWealth Group fee revenue | | | 4,140 | | | | 4,310 | | | | 16,968 | | | | 16,188 | |
| Mortgage banking income | | | 622 | | | | 828 | | | | 4,158 | | | | 4,528 | |
| Capital markets product income | | | 4,767 | | | | — | | | | 11,049 | | | | — | |
| Treasury management income | | | 1,086 | | | | 151 | | | | 2,369 | | | | 579 | |
| Bank owned life insurance | | | 501 | | | | 431 | | | | 1,809 | | | | 1,656 | |
| Banking and other services | | | 1,297 | | | | 484 | | | | 4,453 | | | | 2,975 | |
| Net securities (loss) gain | | | (770 | ) | | | — | | | | 510 | | | | 348 | |
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Total Non-interest Income | | | 11,643 | | | | 6,204 | | | | 41,316 | | | | 26,274 | |
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Non-interest Expense | | | | | | | | | | | | | | | | |
| Salaries and employee benefits | | | 27,219 | | | | 31,673 | | | | 115,678 | | | | 71,219 | |
| Occupancy expense, net | | | 4,543 | | | | 3,918 | | | | 17,098 | | | | 13,204 | |
| Professional fees | | | 5,766 | | | | 6,442 | | | | 16,450 | | | | 11,876 | |
| Investment manager expenses | | | 690 | | | | 925 | | | | 3,299 | | | | 3,432 | |
| Marketing | | | 2,781 | | | | 2,422 | | | | 10,395 | | | | 6,099 | |
| Data processing | | | 1,634 | | | | 1,282 | | | | 5,576 | | | | 4,206 | |
| Postage, telephone, and delivery | | | 563 | | | | 483 | | | | 2,226 | | | | 1,706 | |
| Office supplies and printing | | | 405 | | | | 362 | | | | 1,392 | | | | 1,084 | |
| Amortization of intangibles | | | 267 | | | | 240 | | | | 1,164 | | | | 966 | |
| Insurance | | | 2,341 | | | | 772 | | | | 7,408 | | | | 1,937 | |
| Other non-interest expense | | | 7,694 | | | | 3,291 | | | | 14,439 | | | | 6,680 | |
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Total Non-interest Expense | | | 53,903 | | | | 51,810 | | | | 195,125 | | | | 122,409 | |
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| Minority interest expense | | | 53 | | | | 78 | | | | 309 | | | | 363 | |
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(Loss) Income Before Income Taxes | | | (102,381 | ) | | | (24,107 | ) | | | (151,940 | ) | | | 14,690 | |
| Income tax (benefit) provision | | | (40,370 | ) | | | (8,962 | ) | | | (60,439 | ) | | | 2,883 | |
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Net (loss) income | | | (62,011 | ) | | $ | (15,145 | ) | | | (91,501 | ) | | | 11,807 | |
| | | | | | | | | | | | | |
| Preferred stock dividends | | | 146 | | | | 107 | | | | 546 | | | | 107 | |
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Net (loss) income available to Common Shareholders | | | (62,157 | ) | | $ | (15,252 | ) | | $ | (92,047 | ) | | $ | 11,700 | |
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Weighted Average Common Shares Outstanding | | | 31,733 | | | | 22,537 | | | | 29,553 | | | | 21,572 | |
Diluted Average Common Shares Outstanding | | | 31,733 | | | | 22,537 | | | | 29,553 | | | | 22,286 | |
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Per Common Share Information | | | | | | | | | | | | | | | | |
| Basic | | $ | (1.96 | ) | | $ | (0.68 | ) | | $ | (3.11 | ) | | $ | 0.54 | |
| Diluted | | $ | (1.96 | ) | | $ | (0.68 | ) | | $ | (3.11 | ) | | $ | 0.53 | |
| Dividends | | $ | 0.075 | | | $ | 0.075 | | | $ | 0.300 | | | $ | 0.300 | |
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 twelve months ended December 31, 2008 and the three months ended December 31, 2007 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)
| | | | | | | | | | | | | | | | | | | | | |
| | | 4Q08 | | | 3Q08 | | | 2Q08 | | | 1Q08 | | | 4Q07 | |
Interest Income | | | | | | | | | | | | | | | | | | | | |
| Loans, including fees | | $ | 107,370 | | | $ | 99,408 | | | $ | 84,231 | | | $ | 76,113 | | | $ | 71,062 | |
| Federal funds sold and interest-bearing deposits | | | 488 | | | | 217 | | | | 207 | | | | 246 | | | | 275 | |
| Securities: | | | | | | | | | | | | | | | | | | | | |
| Taxable | | | 10,754 | | | | 8,161 | | | | 5,456 | | | | 4,286 | | | | 3,951 | |
| Exempt from federal income taxes | | | 2,025 | | | | 2,027 | | | | 2,181 | | | | 2,244 | | | | 2,313 | |
| | | | | | | | | | | | | | | | |
Total Interest Income | | | 120,637 | | | | 109,813 | | | | 92,075 | | | | 82,889 | | | | 77,601 | |
| | | | | | | | | | | | | | | | | | | | | |
Interest Expense | | | | | | | | | | | | | | | | | | | | |
| Deposits: | | | | | | | | | | | | | | | | | | | | |
| Interest-bearing demand | | | 285 | | | | 383 | | | | 425 | | | | 422 | | | | 451 | |
| Savings and money market | | | 11,579 | | | | 12,785 | | | | 11,303 | | | | 13,221 | | | | 16,813 | |
| Brokered and other time | | | 36,405 | | | | 33,598 | | | | 29,950 | | | | 26,358 | | | | 20,894 | |
| Funds borrowed | | | 8,064 | | | | 4,634 | | | | 4,523 | | | | 4,996 | | | | 6,087 | |
| | | | | | | | | | | | | | | | | | | | | |
| Junior subordinated deferrable interest debentures held by trusts that issued guaranteed capital debt securities | | | 5,122 | | | | 5,258 | | | | 2,758 | | | | 1,572 | | | | 1,608 | |
| | | | | | | | | | | | | | | | |
Total Interest Expense | | | 61,455 | | | | 56,658 | | | | 48,959 | | | | 46,569 | | | | 45,853 | |
| | | | | | | | | | | | | | | | | | | | | |
Net Interest Income | | | 59,182 | | | | 53,155 | | | | 43,116 | | | | 36,320 | | | | 31,748 | |
| Provision for loan losses | | | 119,250 | | | | 30,173 | | | | 23,024 | | | | 17,133 | | | | 10,171 | |
| | | | | | | | | | | | | | | | |
Net Interest Income after Provision for Loan Losses | | | (60,068 | ) | | | 22,982 | | | | 20,092 | | | | 19,187 | | | | 21,577 | |
| | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | |
Non-interest Income | | | | | | | | | | | | | | | | | | | | |
| The PrivateWealth Group fee revenue | | | 4,140 | | | | 4,059 | | | | 4,350 | | | | 4,419 | | | | 4,310 | |
| Mortgage banking income | | | 622 | | | | 776 | | | | 997 | | | | 1,530 | | | | 828 | |
| Capital markets product income | | | 4,767 | | | | 3,932 | | | | 1,959 | | | | 391 | | | | — | |
| Treasury management income | | | 1,086 | | | | 600 | | | | 279 | | | | 184 | | | | 151 | |
| Bank owned life insurance | | | 501 | | | | 439 | | | | 437 | | | | 432 | | | | 431 | |
| Banking and other services | | | 1,297 | | | | 1,728 | | | | 1,119 | | | | 746 | | | | 484 | |
| Net securities (loss) gain | | | (770 | ) | | | 180 | | | | 286 | | | | 814 | | | | — | |
| | | | | | | | | | | | | | | | |
Total Non-interest Income | | | 11,643 | | | | 11,714 | | | | 9,427 | | | | 8,516 | | | | 6,204 | |
| | | | | | | | | | | | | | | | | | | | | |
Non-interest Expense | | | | | | | | | | | | | | | | | | | | |
| Salaries and employee benefits | | | 27,219 | | | | 28,895 | | | | 31,817 | | | | 27,749 | | | | 31,673 | |
| Occupancy expense, net | | | 4,543 | | | | 4,364 | | | | 4,338 | | | | 3,845 | | | | 3,918 | |
| Professional fees | | | 5,766 | | | | 3,374 | | | | 5,005 | | | | 2,311 | | | | 6,442 | |
| Investment manager expenses | | | 690 | | | | 829 | | | | 812 | | | | 968 | | | | 925 | |
| Marketing | | | 2,781 | | | | 2,083 | | | | 2,700 | | | | 2,828 | | | | 2,422 | |
| Data processing | | | 1,634 | | | | 1,554 | | | | 1,168 | | | | 1,220 | | | | 1,282 | |
| Postage, telephone, and delivery | | | 563 | | | | 575 | | | | 546 | | | | 541 | | | | 483 | |
| Office supplies and printing | | | 405 | | | | 275 | | | | 371 | | | | 350 | | | | 362 | |
| Amortization of intangibles | | | 267 | | | | 241 | | | | 422 | | | | 234 | | | | 240 | |
| Insurance | | | 2,341 | | | | 2,460 | | | | 1,627 | | | | 870 | | | | 772 | |
| Other non-interest expenses | | | 7,694 | | | | 2,435 | | | | 2,401 | | | | 2,016 | | | | 3,291 | |
| | | | | | | | | | | | | | | | |
Total Non-interest Expense | | | 53,903 | | | | 47,085 | | | | 51,207 | | | | 42,932 | | | | 51,810 | |
| | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | |
| Minority interest expense | | | 53 | | | | 86 | | | | 101 | | | | 68 | | | | 78 | |
| | | | | | | | | | | | | | | | |
Loss Before Income Taxes | | | (102,381 | ) | | | (12,475 | ) | | | (21,789 | ) | | | (15,297 | ) | | | (24,107 | ) |
| Income tax benefit | | | (40,370 | ) | | | (5,211 | ) | | | (8,494 | ) | | | (6,364 | ) | | | (8,962 | ) |
| | | | | | | | | | | | | | | | |
Net loss | | $ | (62,011 | ) | | $ | (7,264 | ) | | $ | (13,295 | ) | | $ | (8,933 | ) | | $ | (15,145 | ) |
| | | | | | | | | | | | | | | | |
| Preferred stock dividends | | | 146 | | | | 146 | | | | 146 | | | | 107 | | | | 107 | |
| | | | | | | | | | | | | | | | |
Net loss available to Common Shareholders | | $ | (62,157 | ) | | $ | (7,410 | ) | | $ | (13,441 | ) | | $ | (9,040 | ) | | $ | (15,252 | ) |
| | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | |
Weighted Average Common Shares Outstanding | | | 31,733 | | | | 31,634 | | | | 27,914 | | | | 26,886 | | | | 22,537 | |
Diluted Average Common Shares Outstanding | | | 31,733 | | | | 31,634 | | | | 27,914 | | | | 26,886 | | | | 22,537 | |
| | | | | | | | | | | | | | | | | | | | | |
Per Common Share Information | | | | | | | | | | | | | | | | | | | | |
| Basic | | $ | (1.96 | ) | | $ | (0.23 | ) | | $ | (0.48 | ) | | $ | (0.34 | ) | | $ | (0.68 | ) |
| Diluted | | $ | (1.96 | ) | | $ | (0.23 | ) | | $ | (0.48 | ) | | $ | (0.34 | ) | | $ | (0.68 | ) |
| 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, third and fourth 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)
| | | | | | | | | | | | | | | | | | | | | |
| | | 12/31/08 | | | 09/30/08 | | | 06/30/08 | | | 03/31/08 | | | 12/31/07 | |
| | | unaudited | | | unaudited | | | unaudited | | | unaudited | | | audited | |
Assets | | | | | | | | | | | | | | | | | | | | |
| Cash and due from banks | | $ | 131,848 | | | $ | 76,314 | | | $ | 76,924 | | | $ | 54,576 | | | $ | 51,331 | |
| Fed funds sold and other short-term investments | | | 98,387 | | | | 363,991 | | | | 41,034 | | | | 22,226 | | | | 13,220 | |
| | | | | | | | | | | | | | | | |
| Total cash and cash equivalents | | | 230,235 | | | | 440,305 | | | | 117,958 | | | | 76,802 | | | | 64,551 | |
| | | | | | | | | | | | | | | | |
| Available-for-sale securities, at fair value | | | 1,425,564 | | | | 899,301 | | | | 712,158 | | | | 575,798 | | | | 526,271 | |
| Non-marketable equity investments | | | 27,213 | | | | 18,958 | | | | 13,807 | | | | 13,157 | | | | 12,459 | |
| Loans held for sale | | | 17,082 | | | | 6,736 | | | | 10,988 | | | | 9,659 | | | | 19,358 | |
| | | | | | | | | | | | | | | | | | | | | |
| Loans net of unearned discount | | | 8,036,807 | | | | 7,441,137 | | | | 6,417,026 | | | | 5,136,066 | | | | 4,177,795 | |
| Allowance for loan losses | | | (112,672 | ) | | | (102,223 | ) | | | (79,021 | ) | | | (61,974 | ) | | | (48,891 | ) |
| | | | | | | | | | | | | | | | |
| Net loans | | | 7,924,135 | | | | 7,338,914 | | | | 6,338,005 | | | | 5,074,092 | | | | 4,128,904 | |
| | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | |
| Goodwill | | | 95,045 | | | | 95,045 | | | | 95,045 | | | | 93,341 | | | | 93,341 | |
| Premises and equipment, net | | | 34,201 | | | | 29,650 | | | | 27,513 | | | | 26,356 | | | | 25,600 | |
| Accrued interest receivable | | | 34,282 | | | | 32,466 | | | | 27,809 | | | | 25,287 | | | | 24,144 | |
| Bank owned life insurance | | | 45,938 | | | | 45,438 | | | | 44,999 | | | | 44,561 | | | | 44,129 | |
| Other assets | | | 206,647 | | | | 104,650 | | | | 90,656 | | | | 74,591 | | | | 51,448 | |
| | | | | | | | | | | | | | | | |
Total Assets | | $ | 10,040,342 | | | $ | 9,011,463 | | | $ | 7,478,938 | | | $ | 6,013,644 | | | $ | 4,990,205 | |
| | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | |
Liabilities | | | | | | | | | | | | | | | | | | | | |
| Demand deposits: | | | | | | | | | | | | | | | | | | | | |
| Non-interest bearing | | $ | 711,693 | | | $ | 601,653 | | | $ | 548,710 | | | $ | 341,779 | | | $ | 299,043 | |
| Interest bearing | | | 232,099 | | | | 164,318 | | | | 164,541 | | | | 159,003 | | | | 157,761 | |
| Savings and money market deposit accounts | | | 2,798,882 | | | | 2,407,641 | | | | 2,086,929 | | | | 1,663,275 | | | | 1,594,172 | |
| Brokered deposits | | | 2,654,768 | | | | 2,749,735 | | | | 1,889,401 | | | | 1,396,930 | | | | 542,470 | |
| Other time deposits | | | 1,599,014 | | | | 1,526,601 | | | | 1,466,369 | | | | 1,453,479 | | | | 1,167,692 | |
| | | | | | | | | | | | | | | | |
| Total deposits | | | 7,996,456 | | | | 7,449,948 | | | | 6,155,950 | | | | 5,014,466 | | | | 3,761,138 | |
| | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | |
| Funds borrowed | | | 1,029,085 | | | | 592,194 | | | | 369,570 | | | | 359,099 | | | | 560,809 | |
| Junior subordinated deferrable interest debentures held by trusts that issued guaranteed capital debt securities | | | 244,793 | | | | 244,793 | | | | 244,793 | | | | 101,033 | | | | 101,033 | |
| Accrued interest payable | | | 37,809 | | | | 31,959 | | | | 30,039 | | | | 17,670 | | | | 16,134 | |
| Other liabilities | | | 126,367 | | | | 52,449 | | | | 33,087 | | | | 28,169 | | | | 50,298 | |
| | | | | | | | | | | | | | | | |
Total Liabilities | | | 9,434,510 | | | $ | 8,371,343 | | | $ | 6,833,439 | | | $ | 5,520,437 | | | $ | 4,489,412 | |
| | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | |
Stockholders’ Equity | | | | | | | | | | | | | | | | | | | | |
| Preferred stock | | | 58,070 | | | | 58,070 | | | | 58,070 | | | | 41,000 | | | | 41,000 | |
| Common stock | | | 32,468 | | | | 32,147 | | | | 31,944 | | | | 27,289 | | | | 27,225 | |
| Treasury stock | | | (17,285 | ) | | | (15,626 | ) | | | (14,150 | ) | | | (13,925 | ) | | | (13,559 | ) |
| Additional paid-in-capital | | | 480,529 | | | | 474,354 | | | | 467,294 | | | | 314,961 | | | | 311,989 | |
| Retained earnings | | | 24,482 | | | | 89,248 | | | | 99,177 | | | | 115,016 | | | | 126,204 | |
| Accumulated other comprehensive income | | | 27,568 | | | | 1,927 | | | | 3,164 | | | | 8,866 | | | | 7,934 | |
| | | | | | | | | | | | | | | | |
Total Stockholders’ Equity | | $ | 605,832 | | | $ | 640,120 | | | $ | 645,499 | | | $ | 493,207 | | | $ | 500,793 | |
| | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | |
Total Liabilities and Stockholders’ Equity | | $ | 10,040,342 | | | $ | 9,011,463 | | | $ | 7,478,938 | | | $ | 6,013,644 | | | $ | 4,990,205 | |
| | | | | | | | | | | | | | | | |
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)
| | | | | | | | | | | | | | | | | | | | | |
| | | 4Q08 | | 3Q08 | | 2Q08 | | 1Q08 | | 4Q07 |
Selected Statement of Income Data: | | | | | | | | | | | �� | | | | | | | | | |
| Net interest income | | $ | 59,182 | | | $ | 53,155 | | | $ | 43,116 | | | $ | 36,320 | | | $ | 31,748 | |
| Net revenue (1) | | $ | 71,742 | | | $ | 65,787 | | | $ | 53,535 | | | $ | 45,862 | | | $ | 39,009 | |
| Loss before taxes | | $ | (102,381 | ) | | $ | (12,475 | ) | | $ | (21,789 | ) | | $ | (15,297 | ) | | $ | (24,107 | ) |
| Net loss | | $ | (62,011 | ) | | $ | (7,264 | ) | | $ | (13,295 | ) | | $ | (8,933 | ) | | $ | (15,145 | ) |
| | | | | | | | | | | | | | | | | | | | | |
Per Common Share Data: | | | | | | | | | | | | | | | | | | | | |
| Basic earnings per share | | $ | (1.96 | ) | | $ | (0.23 | ) | | $ | (0.48 | ) | | $ | (0.34 | ) | | $ | (0.68 | ) |
| Diluted earnings per share (2) | | $ | (1.96 | ) | | $ | (0.23 | ) | | $ | (0.48 | ) | | $ | (0.34 | ) | | $ | (0.68 | ) |
| Dividends | | $ | 0.075 | | | $ | 0.075 | | | $ | 0.075 | | | $ | 0.075 | | | $ | 0.075 | |
| Book value (period end) | | $ | 16.32 | | | $ | 17.32 | | | $ | 17.65 | | | $ | 15.97 | | | $ | 16.38 | |
| Tangible book value (period end) (3) | | $ | 13.29 | | | $ | 14.31 | | | $ | 14.61 | | | $ | 12.46 | | | $ | 12.82 | |
| Market value (close) | | $ | 32.46 | | | $ | 41.66 | | | $ | 30.38 | | | $ | 31.47 | | | $ | 32.65 | |
| Diluted earnings multiple (4) | | | (4.18 | ) x | | | (44.83 | ) x | | | (15.78 | ) x | | | (23.08 | ) x | | | (12.10 | ) x |
| Book value multiple | | | 1.99 | x | | | 2.41 | x | | | 1.72 | x | | | 1.97 | x | | | 1.93 | x |
| | | | | | | | | | | | | | | | | | | | | |
Share Data: | | | | | | | | | | | | | | | | | | | | |
| Weighted Average Common Shares Outstanding | | | 31,733 | | | | 31,634 | | | | 27,914 | | | | 26,886 | | | | 22,537 | |
| Diluted Average Common Shares Outstanding (2) | | | 31,733 | | | | 31,634 | | | | 27,914 | | | | 26,886 | | | | 22,537 | |
| Common shares issued (at period end) | | | 34,043 | | | | 34,028 | | | | 33,656 | | | | 28,686 | | | | 28,439 | |
| Common shares outstanding (at period end) | | | 33,568 | | | | 33,604 | | | | 33,275 | | | | 28,311 | | | | 28,075 | |
| | | | | | | | | | | | | | | | | | | | | |
Performance Ratios: | | | | | | | | | | | | | | | | | | | | |
| Return on average assets | | | -2.61 | % | | | -0.35 | % | | | -0.80 | % | | | -0.66 | % | | | -1.30 | % |
| Return on average total equity | | | -40.37 | % | | | -4.59 | % | | | -9.89 | % | | | -7.81 | % | | | -16.61 | % |
| Dividend payout ratio | | | -4.28 | % | | | -35.24 | % | | | -18.93 | % | | | -24.23 | % | | | -14.30 | % |
| Fee revenue as a percent of total revenue (5) | | | 17.34 | % | | | 17.83 | % | | | 17.49 | % | | | 17.49 | % | | | 16.35 | % |
| Non-interest income to average assets | | | 0.49 | % | | | 0.57 | % | | | 0.57 | % | | | 0.63 | % | | | 0.53 | % |
| Non-interest expense to average assets | | | 2.27 | % | | | 2.28 | % | | | 3.07 | % | | | 3.18 | % | | | 4.45 | % |
| Net overhead ratio (6) | | | 1.78 | % | | | 1.71 | % | | | 2.50 | % | | | 2.55 | % | | | 3.92 | % |
| Efficiency ratio (7) | | | 75.13 | % | | | 71.57 | % | | | 95.65 | % | | | 93.61 | % | | | 132.81 | % |
| | | | | | | | | | | | | | | | | | | | | |
Selected Financial Condition Data: | | | | | | | | | | | | | | | | | | | | |
| Client deposits (8) | | $ | 6,020,646 | | | $ | 5,006,397 | | | $ | 4,390,998 | | | $ | 3,697,598 | | | $ | 3,220,464 | |
| The Private Wealth Group assets under management | | $ | 3,261,061 | | | $ | 3,354,212 | | | $ | 3,305,477 | | | $ | 3,314,461 | | | $ | 3,361,171 | |
| | | | | | | | | | | | | | | | | | | | | |
Balance Sheet Ratios: | | | | | | | | | | | | | | | | | | | | |
| Loans to Deposits (period end) | | | 100.50 | % | | | 99.88 | % | | | 104.24 | % | | | 102.42 | % | | | 111.08 | % |
| | | | | | | | | | | | | | | | | | | | | |
| Average interest-earning assets to average interest-bearing liabilities | | | 112.12 | % | | | 113.28 | % | | | 111.69 | % | | | 112.86 | % | | | 111.32 | % |
| | | | | | | | | | | | | | | | | | | | | |
Capital Ratios (period end): | | | | | | | | | | | | | | | | | | | | |
| Total equity to total assets | | | 6.03 | % | | | 7.10 | % | | | 8.63 | % | | | 8.20 | % | | | 10.04 | % |
| Total risk-based capital ratio | | | 10.32 | % | | | 12.09 | % | | | 13.47 | % | | | 11.54 | % | | | 14.20 | % |
| Tier-1 risk-based capital ratio | | | 7.25 | % | | | 9.22 | % | | | 10.82 | % | | | 9.00 | % | | | 11.39 | % |
| Leverage ratio | | | 7.18 | % | | | 9.28 | % | | | 11.46 | % | | | 9.13 | % | | | 10.93 | % |
| Tangible capital ratio | | | 5.08 | % | | | 6.05 | % | | | 7.38 | % | | | 6.66 | % | | | 8.20 | % |
| | |
| (1) | | The sum of net interest income, on a tax equivalent basis, plus non-interest income. |
| |
| (2) | | Diluted shares are equal to Basic shares 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 client CDARSTM. |
PrivateBancorp, Inc.
Asset Quality
Unaudited
(dollars in thousands)
| | | | | | | | | | | | | | | | | | | | | |
| | | 4Q08 | | | 3Q08 | | | 2Q08 | | | 1Q08 | | | 4Q07 | |
Credit Quality Key Ratios: | | | | | | | | | | | | | | | | | | | | |
| Net charge-offs to average loans | | | 5.49 | % | | | 0.40 | % | | | 0.42 | % | | | 0.35 | % | | | 0.35 | % |
| Total non-performing loans to total loans | | | 1.64 | % | | | 1.18 | % | | | 0.91 | % | | | 0.91 | % | | | 0.93 | % |
| Total non-performing assets to total assets | | | 1.55 | % | | | 1.18 | % | | | 0.98 | % | | | 1.10 | % | | | 0.97 | % |
| Nonaccrual loans to: | | | | | | | | | | | | | | | | | | | | |
| total loans | | | 1.64 | % | | | 1.18 | % | | | 0.89 | % | | | 0.91 | % | | | 0.93 | % |
| total assets | | | 1.31 | % | | | 0.98 | % | | | 0.77 | % | | | 0.77 | % | | | 0.78 | % |
| Allowance for loan losses to: | | | | | | | | | | | | | | | | | | | | |
| total loans | | | 1.40 | % | | | 1.37 | % | | | 1.23 | % | | | 1.21 | % | | | 1.17 | % |
| non-performing loans | | | 85 | % | | | 116 | % | | | 135 | % | | | 133 | % | | | 125 | % |
| nonaccrual loans | | | 85 | % | | | 116 | % | | | 138 | % | | | 133 | % | | | 125 | % |
| | | | | | | | | | | | | | | | | | | | | |
Non-performing assets: | | | | | | | | | | | | | | | | | | | | |
| Loans past due 90 days and accruing | | $ | 0 | | | $ | 0 | | | $ | 1,180 | | | $ | 23 | | | $ | 53 | |
| Nonaccrual loans | | | 131,919 | | | | 88,057 | | | | 57,348 | | | | 46,517 | | | | 38,983 | |
| OREO | | | 23,823 | | | | 18,465 | | | | 14,579 | | | | 19,346 | | | | 9,265 | |
| | | | | | | | | | | | | | | | |
| Total non-performing assets | | $ | 155,742 | | | $ | 106,522 | | | $ | 73,107 | | | $ | 65,886 | | | $ | 48,301 | |
| | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | |
Allowance for Loan Losses Summary | | | | | | | | | | | | | | | | | | | | |
| Balance at beginning of period | | $ | 102,223 | | | $ | 79,021 | | | $ | 61,974 | | | $ | 48,891 | | | $ | 42,113 | |
| Provision | | | 119,250 | | | | 30,173 | | | | 23,024 | | | | 17,133 | | | | 10,171 | |
| Loans charged off | | | (109,459 | ) | | | (7,017 | ) | | | (6,097 | ) | | | (4,114 | ) | | | (3,435 | ) |
| Recoveries | | | 658 | | | | 46 | | | | 120 | | | | 64 | | | | 42 | |
| | | | | | | | | | | | | | | | |
| Balance at end of period | | $ | 112,672 | | | $ | 102,223 | | | $ | 79,021 | | | $ | 61,974 | | | $ | 48,891 | |
| | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | |
Net loan charge-offs (recoveries): | | | | | | | | | | | | | | | | | | | | |
| Commercial | | $ | 11,010 | | | $ | 1,469 | | | $ | 1,109 | | | $ | 1,099 | | | $ | 752 | |
| Construction | | | 47,081 | | | | 2,507 | | | | 2,555 | | | | 1,813 | | | | 1,006 | |
| Commercial real estate | | | 45,237 | | | | 2,349 | | | | 1,764 | | | | 481 | | | | 1,388 | |
| Residential real estate | | | 2,385 | | | | 46 | | | | 426 | | | | 118 | | | | — | |
| Home equity | | | 1,781 | | | | 50 | | | | 34 | | | | 333 | | | | — | |
| Personal | | | 1,307 | | | | 550 | | | | 89 | | | | 206 | | | | 247 | |
| | | | | | | | | | | | | | | | |
| Total net loan charge-offs | | $ | 108,801 | | | $ | 6,971 | | | $ | 5,977 | | | $ | 4,050 | | | $ | 3,393 | |
| | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | |
Loans past due 30-89 days and still accruing by type: | | | | | | | | | | | | | | | | | | | | |
| Commercial | | $ | 12,060 | | | $ | 5,867 | | | $ | 5,983 | | | $ | 40,740 | | | $ | 11,170 | |
| Construction | | | 9,166 | | | | 19,113 | | | | 7,062 | | | | 35,738 | | | | 38,407 | |
| Commercial Real Estate | | | 9,113 | | | | 18,473 | | | | 8,282 | | | | 47,265 | | | | 34,366 | |
| Residential Real Estate | | | 3,485 | | | | 3,104 | | | | 1,121 | | | | 5,856 | | | | 9,431 | |
| Personal and Home Equity | | | 1,580 | | | | 3,400 | | | | 7,631 | | | | 16,787 | | | | 9,224 | |
| | | | | | | | | | | | | | | | |
| Total | | $ | 35,404 | | | $ | 49,957 | | | $ | 30,079 | | | $ | 146,386 | | | $ | 102,598 | |
| | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | |
Loans past due 30-89 days and still accruing as a percent
of total loan type: | | | | | | | | | | | | | | | | |
| Commercial | | | 0.30 | % | | | 0.17 | % | | | 0.22 | % | | | 2.20 | % | | | 0.85 | % |
| Construction | | | 1.12 | % | | | 2.69 | % | | | 1.00 | % | | | 5.75 | % | | | 6.26 | % |
| Commercial Real Estate | | | 0.38 | % | | | 0.77 | % | | | 0.38 | % | | | 2.40 | % | | | 2.14 | % |
| Residential Real Estate | | | 1.06 | % | | | 0.83 | % | | | 0.35 | % | | | 2.07 | % | | | 3.55 | % |
| Personal and Home Equity | | | 0.30 | % | | | 0.69 | % | | | 1.65 | % | | | 4.05 | % | | | 2.41 | % |
| | | |
| Total | | | 0.44 | % | | | 0.67 | % | | | 0.47 | % | | | 2.85 | % | | | 2.46 | % |
PrivateBancorp, Inc.
Asset Quality by Location (1)
Unaudited
(dollars in thousands)
December 31, 2008
| | | | | | | | | | | | | | | | | | | | | |
| | | Non performing | | | NPLs as % of Total | | | Other Real Estate | | | Non performing | | | NPAs as % of Total | |
| | | Loans (2) | | | Loans (3) | | | Owned | | | Assets (4) | | | Assets (5) | |
| Chicago | | $ | 61,812 | | | | 0.96 | % | | $ | 5,925 | | | $ | 101,023 | (6) | | | 1.20 | % (6) |
| St. Louis (7) | | | 19,734 | | | | 4.71 | % | | | 5,566 | | | | 25,300 | | | | 4.26 | % |
| Michigan | | | 24,738 | | | | 3.18 | % | | | 4,681 | | | | 29,419 | | | | 2.70 | % |
| Georgia | | | 25,635 | | | | 9.00 | % | | | 7,651 | | | | n/a | (6) | | | n/a | (6) |
| Wisconsin | | | — | | | | — | | | | — | | | | — | | | | — | |
| | | | | | | | | | | | | | | | |
| Consolidated non-performing assets | | $ | 131,919 | | | | 1.64 | % | | $ | 23,823 | | | $ | 155,742 | | | | 1.55 | % |
December 31, 2007
| | | | | | | | | | | | | | | | | | | | | |
| | | Non performing | | | NPLs as % of Total | | | Other Real Estate | | | Non performing | | | NPAs as % of Total | |
| | | Loans (2) | | | Loans (3) | | | Owned | | | Assets (4) | | | Assets (5) | |
| Chicago | | $ | 11,012 | | | | 0.39 | % | | $ | 2,122 | | | $ | 13,134 | | | | 0.39 | % |
| St. Louis (7) | | | 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 | % |
| | |
| (1) | | Location is defined by the chartered bank where the loan is held. |
| |
| (2) | | Non performing loans are defined as loans delinquent > 90 days and non accrual loans. |
| |
| (3) | | Non performing loans are presented as a percentage of each entities’ gross loans |
| |
| (4) | | Non performing assets are non performing loans and Other Real Estate owned. |
| |
| (5) | | Non performing assets are presented as a percentage of each entities’ total assets |
| |
| (6) | | Due to the charter consolidation of Georgia into Chicago during the fourth quarter 2008, non performing assets and non performing assets as a percentage of total assets under Chicago represent the total consolidated assets of Chicago and Georgia. |
| |
| (7) | | St. Louis loans and total assets includes Kansas City total loans and assets at December 31, 2008 and 2007. |
PrivateBancorp, Inc.
Loan Mix
Unaudited
(dollars in thousands)
| | | | | | | | | | | | | | | | | | | | | |
| | | 12/31/08 | | | 09/30/08 | | | 06/30/08 | | | 03/31/08 | | | 12/31/07 | |
| Commercial Real Estate | | | 1,980,271 | | | | 2,049,047 | | | $ | 1,838,301 | | | $ | 1,728,783 | | | $ | 1,386,275 | |
| Multi-family CRE | | | 403,690 | | | | 353,879 | | | | 349,220 | | | | 241,306 | | | | 217,884 | |
| | | | | | | | | | | | | | | | |
| Total CRE Loans | | | 2,383,961 | | | | 2,402,926 | | | | 2,187,521 | | | | 1,970,089 | | | | 1,604,159 | |
| | | | | | | | | | | | | | | | |
| Commercial and Industrial | | | 3,437,130 | | | | 2,957,507 | | | | 2,292,960 | | | | 1,410,442 | | | | 827,837 | |
| Owner-Occupied CRE | | | 538,688 | | | | 499,964 | | | | 451,455 | | | | 437,587 | | | | 483,920 | |
| | | | | | | | | | | | | | | | |
| Total Commercial Loans | | | 3,975,818 | | | | 3,457,471 | | | | 2,744,415 | | | | 1,848,029 | | | | 1,311,757 | |
| | | | | | | | | | | | | | | | |
| Residential Real Estate | | | 328,138 | | | | 374,488 | | | | 318,358 | | | | 282,257 | | | | 265,466 | |
| Personal (1) | | | 341,806 | | | | 318,552 | | | | 296,458 | | | | 269,848 | | | | 247,462 | |
| Home Equity | | | 191,934 | | | | 176,094 | | | | 164,771 | | | | 144,209 | | | | 135,483 | |
| Construction | | | 815,150 | | | | 711,606 | | | | 705,503 | | | | 621,634 | | | | 613,468 | |
| | | | | | | | | | | | | | | | |
| Total Loans | | $ | 8,036,807 | | | $ | 7,441,137 | | | $ | 6,417,026 | | | $ | 5,136,066 | | | $ | 4,177,795 | |
| | | | | | | | | | | | | | | | |
| | |
| (1) | | The personal loan category includes overdrafts. |
PrivateBancorp, Inc.
Net Interest Margin
Unaudited
(dollars in thousands)
| | | | | | | | | | | | | | | | | | | | | | | | | |
| | | Three Months Ended December 31, | |
| | | 2008 | | | 2007 (1) |
| | | Average | | | | | | | | | | | Average | | | | | | | |
| | | Balance(2) | | | Interest | | | Rate | | | Balance(2) | | | Interest | | | Rate | |
| | | | | | |
Assets: | | | | | | | | | | | | | | | | | | | | | | | | |
| Fed funds sold and interest- bearing deposits | | $ | 119,711 | | | $ | 488 | | | | 1.61 | % | | $ | 14,889 | | | $ | 275 | | | | 7.27 | % |
| Securities: | | | | | | | | | | | | | | | | | | | | | | | | |
| Taxable | | | 912,965 | | | | 10,754 | | | | 4.71 | % | | | 313,333 | | | | 3,951 | | | | 5.04 | % |
| Tax exempt | | | 179,685 | | | | 2,942 | | | | 6.55 | % | | | 195,836 | | | | 3,370 | | | | 6.88 | % |
| | | | | | | | | | | | | |
| Total securities | | | 1,092,650 | | | | 13,696 | | | | 5.01 | % | | | 509,169 | | | | 7,321 | | | | 5.75 | % |
| | | | | | | | | | | | | |
| Loans: | | | | | | | | | | | | | | | | | | | | | | | | |
| Commercial, Construction & CRE | | | 7,023,689 | | | | 96,904 | | | | 5.44 | % | | | 3,218,560 | | | | 60,504 | | | | 7.46 | % |
| Residential | | | 335,117 | | | | 4,770 | | | | 5.69 | % | | | 267,106 | | | | 4,141 | | | | 6.20 | % |
| Private Client | | | 489,086 | | | | 5,696 | | | | 4.62 | % | | | 354,147 | | | | 6,417 | | | | 7.19 | % |
| | | | | | | | | | | | | |
| Total Loans (3) | | | 7,847,892 | | | | 107,370 | | | | 5.40 | % | | | 3,839,813 | | | | 71,062 | | | | 7.35 | % |
| | | | | | | | | | | | | |
| Total earning assets | | $ | 9,060,253 | | | $ | 121,554 | | | | 5.31 | % | | $ | 4,363,871 | | | $ | 78,658 | | | | 7.16 | % |
| Allowance for loan losses | | | (104,510 | ) | | | | | | | | | | | (43,116 | ) | | | | | | | | |
| Cash and dues from banks | | | 141,128 | | | | | | | | | | | | 53,603 | | | | | | | | | |
| Other assets | | | 338,602 | | | | | | | | | | | | 244,501 | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | |
| Total average assets | | $ | 9,435,473 | | | | | | | | | | | $ | 4,618,859 | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
Liabilities: | | | | | | | | | | | | | | | | | | | | | | | | |
| Interest-bearing demand deposits | | $ | 166,636 | | | $ | 285 | | | | 0.68 | % | | $ | 139,467 | | | $ | 451 | | | | 1.28 | % |
| Regular savings deposits | | | 15,912 | | | | 46 | | | | 1.14 | % | | | 11,827 | | | | 61 | | | | 2.05 | % |
| Money market accounts | | | 2,607,552 | | | | 11,533 | | | | 1.75 | % | | | 1,549,211 | | | | 16,752 | | | | 4.29 | % |
| Time deposits | | | 1,606,015 | | | | 13,191 | | | | 3.26 | % | | | 1,120,235 | | | | 14,368 | | | | 5.09 | % |
| Brokered deposits | | | 2,600,547 | | | | 23,214 | | | | 3.54 | % | | | 507,434 | | | | 6,526 | | | | 5.10 | % |
| | | | | | | | | | | | | |
| Total interest-bearing deposits | | | 6,996,662 | | | | 48,269 | | | | 2.74 | % | | | 3,328,174 | | | | 38,158 | | | | 4.55 | % |
| Other borrowings | | | 839,166 | | | | 8,064 | | | | 3.76 | % | | | 492,198 | | | | 6,087 | | | | 4.84 | % |
| Junior subordinated deferrable interest debentures held by trusts that issued guaranteed capital debt securities | | | 244,793 | | | | 5,122 | | | | 8.19 | % | | | 101,033 | | | | 1,608 | | | | 6.23 | % |
| | | | | | | | | | | | | |
| Total interest-bearing liabilities | | | 8,080,621 | | | | 61,455 | | | | 3.01 | % | | | 3,921,405 | | | | 45,853 | | | | 4.63 | % |
| | | | | | | | | | | | | |
| Non-interest bearing deposits | | | 624,716 | | | | | | | | | | | | 302,864 | | | | | | | | | |
| Other liabilities | | | 120,649 | | | | | | | | | | | | 33,059 | | | | | | | | | |
| Stockholders’ equity | | | 609,487 | | | | | | | | | | | | 361,531 | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | |
| Total average liabilities and stockholders’ equity | | $ | 9,435,473 | | | | | | | | | | | $ | 4,618,859 | | | | | | | | | |
| | | | | | | | | | | | | | | | | |
| Tax equivalent net interest income (4) | | | | | | $ | 60,099 | | | | | | | | | | | $ | 32,805 | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | |
| Net interest spread (5) | | | | | | | | | | | 2.30 | % | | | | | | | | | | | 2.53 | % |
| Effect of non interest-bearing funds | | | | | | | | | | | 0.32 | % | | | | | | | | | | | 0.47 | % |
| | | | | | | | | | | | | | | | | | | | | | | |
| Net interest margin (4) (6) | | | | | | | | | | | 2.62 | % | | | | | | | | | | | 3.00 | % |
| | | | | | | | | | | | | | | | | | | | | | | |
| | |
| (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 $5.9 million for the quarter ended December 31, 2008 compared to approximately $2.4 million in the prior year quarter. |
| |
| (4) | | Reconciliation of the current quarter net interest income to prior quarter : |
| | | | | | | | | |
| | | Three months Ended December 31, |
| | | 2008 | | 2007 |
| | | |
| Net interest income | | $ | 59,182 | | | $ | 31,748 | |
| Tax equivalent adjustment to net interest income | | | 917 | | | | 1,057 | |
| | | |
| Net interest income, tax equivalent basis | | $ | 60,099 | | | $ | 32,805 | |
| | | |
| | |
| (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. |
