PrivateBancorp 8K Reports First Quarter 2009 Results | PVTB 27 Apr 09

Exhibit 99.1

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

Investor Relations Contact:
Katie Manzel
Investor Relations Officer
312-564-6818
kmanzel@theprivatebank.com

For Immediate Release

PrivateBancorp Reports First Quarter 2009 Results

PrivateBancorp reports first quarterly profit since launch of the Strategic Growth Plan

	•		Net revenue grew 23 percent over the fourth quarter to $88.3 million

	•		Client deposits increased $920.6 million or 15 percent from the fourth quarter

	•		Loans grew by $446.8 million or 6 percent from the fourth quarter

	•		Efficiency ratio improved to 65.8 percent from 76.6 percent in the fourth quarter

	•		Loan loss reserves increased to $127.0 million and the coverage ratio increased to 1.50 percent

CHICAGO, April 27, 2009 — PrivateBancorp, Inc. (NASDAQ: PVTB) today reported net income of $4.8 million, or $0.14 per diluted share, for the first quarter ended March 31, 2009, compared with a net loss of $9.3 million, or $0.34 per diluted share, for the first quarter 2008.

“We are pleased with our first quarter results, especially given the continued economic pressures,” said Larry D. Richman, President and Chief Executive Officer, PrivateBancorp, Inc. “We believe we are making steady progress toward achieving the operating performance expected from the investments made as part of our Strategic Growth Plan. For the second quarter in a row, we saw strong client acquisition and increased client deposit growth, a clear signal that we are building those strong, deep client relationships. We are fully aware that 2009 will continue to present economic

challenges, particularly related to credit quality, and we will continue to manage our business prudently.”

Balance Sheet

Total assets increased to $10.4 billion at March 31, 2009, from $6.0 billion at March 31, 2008, and $10.0 billion at December 31, 2008. Total loans increased $446.8 million to $8.5 billion at March 31, 2009, from $5.1 billion at March 31, 2008 and $8.0 billion at December 31, 2008. Commercial loans increased to 52 percent of the Company’s total loans at the end of the first quarter 2009 from 36 percent of total loans at March 31, 2008, and 49 percent of total loans at December 31, 2008. Commercial real estate loans decreased to 28 percent of total loans at the end of the first quarter 2009, compared to 39 percent of total loans at the end of the first quarter 2008, and 30 percent of the Company’s total loans at the end of the fourth quarter 2008.

Total deposits were $7.8 billion at March 31, 2009, compared to $5.0 billion at March 31, 2008, and $8.0 billion at December 31, 2008. Client deposits increased to $6.9 billion at March 31, 2009, from $3.7 billion at March 31, 2008, and $6.0 billion at December 31, 2008. Client deposits at March 31, 2009, includes $865.7 million in client CDARS^® deposits. Brokered deposits (excluding client CDARS) decreased to 11 percent of total deposits in the first quarter 2009, from 26 percent of total deposits as of March 31, 2008, and 25 percent of total deposits at the end of the fourth quarter 2008.

Funds borrowed, which include federal funds purchased, FHLB advances, trust preferred securities, borrowings under the Company’s various credit facilities, and convertible senior notes, was $1.5 billion at March 31, 2009, up from $458.7 million at March 31, 2008, and $1.3 billion at December 31, 2008.

The Company’s investment securities portfolio was $1.4 billion at March 31, 2009, compared to $589.0 million at March 31, 2008 and $1.5 billion at December 31, 2008. Net unrealized gains were $54.2 million, compared to $14.0 million at the end of the first quarter 2008, and $44.2 million at the end of the fourth quarter 2008. 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.

Net Revenue Growth

Net revenue grew to $88.3 million in the first quarter 2009, from $45.5 million in the first quarter 2008, and $71.7 million in the fourth quarter 2008. Despite lower interest income due to declining interest rates, net interest income improved to $63.9 million in the first quarter 2009, up from $36.0 million for the first quarter 2008, and from $59.2 million in the fourth quarter 2008. Net interest margin (on a tax equivalent basis) was 2.68 percent, compared to 2.88 percent for the first quarter 2008, and 2.62 percent in the fourth quarter 2008. Net interest margin improved over the fourth quarter due to more favorable loan spreads, strong client deposit growth that reduced the Company’s reliance on more expensive brokered funds and lower cost of borrowed funds.

Non-interest income, excluding securities gains and losses, was $22.8 million in the first quarter 2009, compared to $7.7 million in the first quarter 2008, and $12.4 million in the fourth quarter 2008. Capital markets income grew to $11.2 million, compared with $391,000 in the first quarter 2008 and $4.8 million in the fourth quarter 2008, as clients increased their use of derivatives for interest rate management. Mortgage banking income increased to $2.2 million in the first quarter 2009, compared to $1.5 million at the end of the first quarter 2008, and $622,000 at the end of the fourth quarter 2008. Treasury management income was $1.6 million in the first quarter 2009 compared to $184,000 in the first quarter 2008, and $1.1 million in the fourth quarter 2008. Banking and other services income increased to $3.6 million in the first quarter 2009, compared to $746,000 in the first quarter 2008, and $1.3 million in the fourth quarter 2008, due to an increase in letter of credit fees and transaction-related fees.

The PrivateWealth Group’s fee revenue was down in the first quarter 2009 to $3.8 million, compared to $4.4 million in the first quarter 2008, and $4.1 million in the fourth quarter 2008. The PrivateWealth Group’s assets under management declined slightly to $3.2 billion at March 31, 2009, compared with $3.3 billion at March 31, 2008, and December 31, 2008. The Company continues to see net additions to new and existing accounts offsetting declines in assets under management due to market performance.

Credit Quality

The first quarter 2009 provision for loan losses was $17.8 million, compared to $17.1 million in the first quarter 2008. The provision for loan losses in the fourth quarter 2008 was $119.3 million, when the Company recorded $108.8 million in net charge-offs and $10.5 million in additional provision for loan losses primarily related to growth in the loan portfolio.

The allowance for loan losses as a percentage of total loans was 1.50 percent at March 31, 2009, compared with 1.21 percent at March 31, 2008, and 1.40 percent at December 31, 2008. Charge-offs were $7.0 million, offset by recoveries of $3.6 million.

The Company had $191.6 million in total non-performing assets at March 31, 2009, compared to $65.9 million at March 31, 2008, and $155.7 million at December 31, 2008, reflecting a weakening credit environment. Non-performing assets to total assets were 1.85 percent at March 31, 2009, compared to 1.10 percent at March 31, 2008, and 1.55 percent at December 31, 2008.

During the first quarter, a portion of the Company’s clients were significantly impacted by the challenging economic environment. Higher non-performing assets were driven largely by weakness in the commercial real estate sector in most of the Company’s markets. Problem loans and stress in the portfolio led to an increase in the allowance for loan losses.

Expenses

Non-interest expense was $58.1 million in the first quarter, compared to $42.9 million in the first quarter 2008 and $54.9 million in the fourth quarter 2008. The increase over the first quarter 2008 reflects the ongoing investment in the Strategic Growth Plan throughout the year. The increase over the fourth quarter 2008 includes the timing of payroll taxes, incentive compensation accruals, and additional revenue-based compensation. The occupancy expense increase reflected the need for additional office space in downtown Chicago. Insurance costs were higher due to increased FDIC assessments incurred in the first quarter 2009. Net foreclosed properties fees and professional fees were lower in the first quarter 2009 compared to fourth quarter 2008 as these fee levels were directly related to credit actions taken in the fourth quarter of 2008.

The efficiency ratio improved to 65.8 percent in the first quarter 2009 from 94.4 percent in the first quarter 2008 and 76.6 percent in the fourth quarter 2008.

Capital Resources and Tangible Common Equity

As of March 31, 2009, the Company had total risk-based capital at 12.63 percent and Tier 1 risk-based capital ratio at 10.13 percent, exceeding the well-capitalized thresholds of 10 percent and 6 percent, respectively.

The Company’s tangible common equity ratio at March 31, 2009, was 4.58 percent, not including the impact of the previously announced intent by GTCR to convert its preferred shares to non-voting common shares. As described in our preliminary proxy statement filed with the SEC on April 21, 2009, shareholders are being asked to approve an amendment to our Certificate of Incorporation to revise the terms of the existing preferred GTCR owns and create a new class of non-voting common stock.

About PrivateBancorp, Inc.

PrivateBancorp, Inc. is a growing diversified financial services company with 23 offices in nine states and $10.4 billion in assets as of March 31, 2009. 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.theprivatebank.com.

Forward-Looking Statements: Statements contained in this news release that are not historical facts may constitute forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended. The Company’s ability to predict results or the actual effect of future plans or strategies is inherently uncertain. Factors which could 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; unforeseen difficulties relating to the mergers and integrations of subsidiary banks; 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.
Quarterly Consolidated Income Statements
(Amounts in thousands except per share data)
(Unaudited)


	1Q09		4Q08			3Q08			2Q08			1Q08
Interest Income
Loans, including fees	$	92,944	$	107,370		$	99,408		$	84,231		$	76,113
Federal funds sold and other short-term investments		288		488			217			207			246
Securities:
Taxable		14,546		10,754			8,161			5,456			4,286
Exempt from Federal income taxes		1,852		2,025			2,027			2,181			2,244

Total Interest Income		109,630		120,637			109,813			92,075			82,889

Interest Expense
Interest-bearing deposits		399		285			383			425			422
Savings deposits and money market accounts		6,564		11,579			12,785			11,303			13,221
Brokered and other time deposits		26,884		36,405			33,598			29,950			26,358
Short-term borrowings		2,988		3,416			3,511			2,751			3,110
Long-term debt		8,915		9,805			6,957			4,918			3,821

Total interest expense		45,750		61,490			57,234			49,347			46,932
Net interest income		63,880		59,147			52,579			42,728			35,957
Provision for loan losses		17,805		119,250			30,173			23,024			17,133

Net Interest Income after provision for loan losses		46,075		(60,103	)		22,406			19,704			18,824


Non-interest Income
The PrivateWealth Group		3,794		4,140			4,059			4,350			4,419
Mortgage banking		2,175		622			776			997			1,530
Capital markets products		11,233		4,767			3,932			1,959			391
Treasury management		1,605		1,086			600			279			184
Bank owned life insurance		389		501			439			437			432
Banking and other services		3,594		1,297			1,728			1,119			746
Net securities gains (losses)		772		(770	)		180			286			814

Total Non-interest Income		23,562		11,643			11,714			9,427			8,516

Non-interest Expense
Salaries and employee benefits		35,121		28,219			28,895			31,817			27,749
Net occupancy expense		6,041		4,543			4,364			4,338			3,845
Technology and related costs		1,632		1,634			1,554			1,168			1,220
Marketing		1,842		2,781			2,083			2,700			2,828
Professional fees		4,260		5,766			3,374			5,005			2,311
Investment manager expenses		609		690			829			812			968
Net foreclosed property expenses		444		4,605			458			597			558
Supplies and printing		342		405			275			371			350
Postage, telephone, and delivery		581		563			575			546			541
Insurance		3,832		2,341			2,460			1,627			870
Amortization of intangibles		329		267			241			422			234
Other non-interest expense		3,024		3,089			1,977			1,804			1,458

Total Non-interest Expense		58,057		54,903			47,085			51,207			42,932

Income (Loss) Before Income Taxes		11,580		(103,363	)		(12,965	)		(22,076	)		(15,592	)
Income tax provision (benefit)		4,409		(40,783	)		(5,430	)		(8,642	)		(6,502	)

Net income (loss)	$	7,171	$	(62,580	)	$	(7,535	)	$	(13,434	)	$	(9,090	)
Net income attributable to noncontrolling interests		60		53			86			101			68

Net income (loss) attributable to controlling interests	$	7,111	$	(62,633	)	$	(7,621	)	$	(13,535	)	$	(9,158	)

Preferred stock dividends and discount accretion		2,270		146			146			146			107

Net income (loss) available to Common Stockholders	$	4,841	$	(62,779	)	$	(7,767	)	$	(13,681	)	$	(9,265	)


Net Earnings per Common Share Data
Basic	$	0.15	$	(1.98	)	$	(0.25	)		(0.49	)		(0.34	)
Diluted	$	0.14	$	(1.98	)	$	(0.25	)	$	(0.49	)	$	(0.34	)
Dividends	$	0.01	$	0.075		$	0.075		$	0.075		$	0.075
Weighted Average Common Shares Outstanding		32,030		31,733			31,634			27,914			26,886
Diluted Average Common Shares Outstanding		34,304		31,733			31,634			27,914			26,886


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 due to the net loss. The calculation of diluted earnings per share during those periods results in anti-dilution.

Note 3: All periods have been restated to reflect the adoption of FSP APB 14-1, “Accounting for Convertible Debt Instruments That May Be Settled in Cash upon Conversion (Including Partial Cash Settlement).”

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


	03/31/09			12/31/08			09/30/08			06/30/08			03/31/08
	unaudited			unaudited			unaudited			unaudited			unaudited
Assets
Cash and due from banks	$	96,712		$	131,848		$	76,314		$	76,924		$	54,576
Fed funds sold and other short-term investments		83,626			98,387			363,991			41,034			22,226
Mortgages held for sale		11,298			17,082			6,736			10,988			9,659
Securities available-for-sale, at fair value		1,385,244			1,425,564			899,301			712,158			575,798
Non-marketable equity investments		28,035			27,213			18,958			13,807			13,157
Loans net of unearned fees		8,483,641			8,036,807			7,441,137			6,417,026			5,136,066
Allowance for loan losses		(127,011	)		(112,672	)		(102,223	)		(79,021	)		(61,974	)

Net loans		8,356,630			7,924,135			7,338,914			6,338,005			5,074,092

Other real estate owned		28,703			23,823			18,465			14,579			19,346
Premises, furniture, and equipment, net		33,179			34,201			29,650			27,513			26,356
Accrued interest receivable		30,627			34,282			32,466			27,809			25,287
Investment in bank owned life insurance		46,327			45,938			45,438			44,999			44,561
Goodwill		95,045			95,045			95,045			95,045			93,341
Derivative assets		91,785			74,570			10,976			5,342			6,633
Other assets		88,503			108,449			74,988			70,295			48,026

Total assets	$	10,375,714		$	10,040,537		$	9,011,242		$	7,478,498		$	6,013,058


Liabilities
Demand deposits:
Non-interest bearing	$	954,311		$	711,693		$	601,653		$	548,710		$	341,779
Interest bearing		428,529			232,099			164,318			164,541			159,003
Savings and money market deposit accounts		3,021,268			2,798,882			2,407,641			2,086,929			1,663,275
Brokered deposits		1,740,960			2,654,768			2,749,735			1,889,401			1,396,930
Other time deposits		1,671,520			1,599,014			1,526,601			1,466,369			1,453,479

Total deposits		7,816,588			7,996,456			7,449,948			6,155,950			5,014,466

Short-term borrowings		834,466			654,765			312,490			194,490			191,623
Long-term debt		710,793			618,793			523,792			418,784			267,036
Accrued interest payable		23,775			37,623			32,121			30,007			17,636
Derivative liabilities		89,482			76,068			11,788			5,342			6,633
Other liabilities		34,382			51,266			40,372			27,543			21,435

Total Liabilities		9,509,486			9,434,971			8,370,511			6,832,116			5,518,829


Stockholders’ Equity
Preferred stock		294,546			58,070			58,070			58,070			41,000
Common stock		32,543			32,468			32,147			31,944			27,289
Treasury stock		(17,338	)		(17,285	)		(15,626	)		(14,150	)		(13,925	)
Additional paid-in-capital		495,811			482,347			476,172			469,112			316,779
Retained earnings		26,875			22,365			87,753			98,040			114,119
Accumulated other comprehensive income		33,698			27,568			1,927			3,164			8,866

Controlling interest stockholders’ equity		866,135			605,533			640,443			646,180			494,128

Noncontrolling interests		93			33			288			202			101

Total stockholders’ equity		866,228			605,566			640,731			646,382			494,229

Total liabilities and stockholders’ equity		10,375,714			10,040,537			9,011,242			7,478,498			6,013,058

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:All periods have been restated to reflect the adoption of FSP APB 14-1, “Accounting for Convertible Debt Instruments That May Be Settled in Cash upon Conversion (Including Partial Cash Settlement).”

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


	1Q09			4Q08			3Q08			2Q08			1Q08
Selected Statement of Income Data:
Net interest income	$	63,880		$	59,147		$	52,579		$	42,728		$	35,957
Net revenue (1)	$	88,288		$	71,707		$	65,211		$	53,147		$	45,499
Income (loss) before taxes	$	11,580		$	(103,363	)	$	(12,965	)	$	(22,076	)	$	(15,592	)
Net income (loss)	$	4,841		$	(62,779	)	$	(7,767	)	$	(13,681	)	$	(9,265	)

Per Common Share Data:
Basic earnings per share	$	0.15		$	(1.98	)	$	(0.25	)	$	(0.49	)	$	(0.34	)
Diluted earnings per share (2)	$	0.14		$	(1.98	)	$	(0.25	)	$	(0.49	)	$	(0.34	)
Dividends	$	0.010		$	0.075		$	0.075		$	0.075		$	0.075
Book value (period end) (3)	$	16.96		$	16.31		$	17.34		$	17.68		$	16.01
Tangible book value (period end) (4)	$	13.96		$	13.28		$	14.33		$	14.63		$	12.49
Market value (close)	$	14.46		$	32.46		$	41.66		$	30.38		$	31.47
Book value multiple		0.85	x		1.99	x		2.40	x		1.72	x		1.97	x

Share Data:
Weighted Average Common Shares Outstanding		32,030			31,733			31,634			27,914			26,886
Diluted Average Common Shares Outstanding (2)		34,304			31,733			31,634			27,914			26,886
Common shares issued (at period end)		34,180			34,043			34,028			33,656			28,686
Common shares outstanding (at period end)		33,702			33,568			33,604			33,275			28,311

Performance Ratios:
Return on average assets		0.29	%		-2.63	%		-0.37	%		-0.81	%		-0.68	%
Return on average common equity		3.48	%		-45.11	%		-5.40	%		-11.13	%		-8.99	%
Fee revenue as a percent of total revenue (5)		26.29	%		17.35	%		17.99	%		17.62	%		17.64	%
Non-interest income to average assets		0.95	%		0.49	%		0.57	%		0.57	%		0.63	%
Non-interest expense to average assets		2.34	%		2.31	%		2.28	%		3.07	%		3.18	%
Net overhead ratio (6)		1.39	%		1.82	%		1.71	%		2.50	%		2.55	%
Efficiency ratio (7)		65.76	%		76.57	%		72.20	%		96.35	%		94.36	%

Selected Financial Condition Data:
Client deposits (8)	$	6,941,284		$	6,020,646		$	5,006,397		$	4,390,998		$	3,697,598
The Private Wealth Group assets under management	$	3,164,158		$	3,261,061		$	3,354,212		$	3,305,477		$	3,314,461

Balance Sheet Ratios:
Loans to Deposits (period end)		108.53	%		100.50	%		99.88	%		104.24	%		102.42	%
Average interest-earning assets to average interest-bearing liabilities		115.10	%		112.30	%		113.29	%		112.34	%		113.02	%

Capital Ratios (period end):
Total equity to total assets		8.35	%		6.03	%		7.11	%		8.64	%		8.22	%
Total risk-based capital ratio		12.63	%		10.32	%		12.08	%		13.48	%		11.56	%
Tier-1 risk-based capital ratio		10.13	%		7.24	%		9.21	%		10.84	%		9.02	%
Leverage ratio		9.79	%		7.17	%		9.29	%		11.48	%		9.15	%
Tangible common equity to tangible assets (9)		4.58	%		4.49	%		5.40	%		6.60	%		5.98	%


(1)		The sum of net interest income, on a tax equivalent basis, plus non-interest income. The tax equivalent adjustments for the first quarter 2008 through the first quarter 2009 were $1.0 million, $992,000, $918,000, $917,000 and $845,000, respectively.

(2)		For all the 2008 periods presented, diluted shares are equal to Basic shares due to the net loss. The calculation of diluted earnings per share results in anti-dilution for all quarters in 2008.

(3)		Book Value is total common capital divided by outstanding shares at end of period.

(4)		Tangible book value is total capital less goodwill and other intangibles divided by outstanding shares at end of period. This is a non-GAAP financial measure.

(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. The tax equivalent adjustments for the first quarter 2008 through the first quarter 2009 were $1.0 million, $992,000, $918,000, $917,000 and $845,000, respectively.

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

(9)		Tangible common equity to tangible assets are equal to common stockholders’ equity excluding goodwill and other intangible assets divided by assets excluding goodwill and other intangible assets. This is a non-GAAP financial measure.

		All periods have been restated to reflect the adoption of FSP APB 14-1, “Accounting for Convertible Debt Instruments That May Be Settled in Cash upon Conversion (Including Partial Cash Settlement).”

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


	1Q09			4Q08			3Q08			2Q08			1Q08
Credit Quality Key Ratios:
Net charge-offs to average loans		0.17	%		5.49	%		0.40	%		0.42	%		0.35	%
Total non-performing loans to total loans		1.92	%		1.64	%		1.18	%		0.91	%		0.91	%
Total non-performing assets to total assets		1.85	%		1.55	%		1.18	%		0.98	%		1.10	%
Nonaccrual loans to:
total loans		1.92	%		1.64	%		1.18	%		0.89	%		0.91	%
total assets		1.57	%		1.31	%		0.98	%		0.77	%		0.77	%
Allowance for loan losses to:
total loans		1.50	%		1.40	%		1.37	%		1.23	%		1.21	%
non-performing loans		78	%		85	%		116	%		135	%		133	%
nonaccrual loans		78	%		85	%		116	%		138	%		133	%

Non-performing assets:
Loans past due 90 days and accruing	$	0		$	0		$	0		$	1,180		$	23
Nonaccrual loans		162,896			131,919			88,057			57,348			46,517
OREO		28,703			23,823			18,465			14,579			19,346

Total non-performing assets	$	191,599		$	155,742		$	106,522		$	73,107		$	65,886


Allowance for Loan Losses Summary
Balance at beginning of period	$	112,672		$	102,223		$	79,021		$	61,974		$	48,891
Provision		17,805			119,250			30,173			23,024			17,133
Loans charged off		(7,037	)		(109,459	)		(7,017	)		(6,097	)		(4,114	)
Recoveries		3,571			658			46			120			64

Balance at end of period	$	127,011		$	112,672		$	102,223		$	79,021		$	61,974


Net loan charge-offs (recoveries):
Commercial	$	4,187		$	11,010		$	1,469		$	1,109		$	1,099
Commercial Real Estate		(250	)		45,237			2,349			1,764			481
Construction		(1,242	)		47,081			2,507			2,555			1,813
Residential Real Estate		(2	)		2,385			46			426			118
Home Equity		9			1,781			50			34			333
Personal		764			1,307			550			89			206

Total net loan charge-offs	$	3,466		$	108,801		$	6,971		$	5,977		$	4,050


Loans past due 30-89 days and still accruing by type:
Commercial	$	23,953		$	12,060		$	5,867		$	5,983		$	40,740
Commercial Real Estate		55,881			9,113			18,473			8,282			47,265
Construction		7,196			9,166			19,113			7,062			35,738
Residential Real Estate		5,606			3,485			3,104			1,121			5,856
Personal and Home Equity		7,804			1,580			3,400			7,631			16,787

Total	$	100,440		$	35,404		$	49,957		$	30,079		$	146,386


Loans past due 30-89 days and still accruing as a percent of total loan type:
Commercial		0.54	%		0.30	%		0.17	%		0.22	%		2.20	%
Commercial Real Estate		2.38	%		0.38	%		0.77	%		0.38	%		2.40	%
Construction		0.86	%		1.12	%		2.69	%		1.00	%		5.75	%
Residential Real Estate		1.68	%		1.06	%		0.83	%		0.35	%		2.07	%
Personal and Home Equity		1.39	%		0.30	%		0.69	%		1.65	%		4.05	%

Total		1.18	%		0.44	%		0.67	%		0.47	%		2.85	%

PrivateBancorp, Inc.
Asset Quality by Location ⁽¹⁾
Unaudited
(dollars in thousands)

March 31, 2009


	Non performing		NPLs as % of			Other Real		Non performing		NPAs as % of Total
	Loans ⁽²⁾		Total Loans ⁽³⁾			Estate Owned		Assets ⁽⁴⁾		Assets ⁽⁵⁾
Chicago	$	106,658		1.49	%	$	15,367	$	122,025		1.39	%
St. Louis		18,239		4.34	%		9,772		28,011		4.49	%
Michigan		37,999		4.76	%		3,564		41,563		3.52	%
Wisconsin		—		—			—		—		—

Consolidated non-performing assets	$	162,896		1.92	%	$	28,703	$	191,599		1.85	%

December 31, 2008


	Non performing		NPLs as % of Total			Other Real		Non performing			NPAs as % of Total
	Loans ⁽²⁾		Loans ⁽³⁾			Estate Owned		Assets ⁽⁴⁾			Assets ⁽⁵⁾
Chicago	$	61,812		0.96	%	$	5,925	$	101,023	⁽⁶⁾		1.20	%⁽⁶⁾
St. Louis		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	%


(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 the Georgia charter 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.

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


	03/31/09		12/31/08		09/30/08		06/30/08		03/31/08
Commercial and Industrial	$	3,531,439	$	3,437,130	$	2,957,507	$	2,292,960	$	1,410,442
Owner-Occupied CRE		872,656		538,688		499,964		451,455		437,587

Total Commercial Loans		4,404,095		3,975,818		3,457,471		2,744,415		1,848,029

Commercial Real Estate		1,825,805		1,980,271		2,049,047		1,838,301		1,728,783
Multi-family CRE		520,455		403,690		353,879		349,220		241,306

Total CRE Loans		2,346,260		2,383,961		2,402,926		2,187,521		1,970,089

Construction		837,952		815,150		711,606		705,503		621,634
Residential Real Estate		332,736		328,138		374,488		318,358		282,257
Home Equity		205,872		191,934		176,094		164,771		144,209
Personal⁽¹⁾		356,726		341,806		318,552		296,458		269,848

Total Loans	$	8,483,641	$	8,036,807	$	7,441,137	$	6,417,026	$	5,136,066

(1) The personal loan category includes overdrafts.

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


	Three Months Ended March 31,
	2009								2008⁽¹⁾
	Average								Average
	Balance			Interest		Rate			Balance			Interest		Rate

Assets:
Fed funds sold and interest-bearing deposits	$	94,525		$	288		1.24	%	$	25,708		$	246		3.80	%
Securities:
Taxable		1,230,728			14,546		4.73	%		345,183			4,286		4.97	%
Tax exempt		166,966			2,698		6.46	%		190,009			3,270		6.88	%

Total securities		1,397,694			17,244		4.94	%		535,192			7,556		5.65	%

Loans:
Commercial, Construction & CRE		7,366,742			83,242		4.56	%		3,923,148			65,801		6.73	%
Residential		348,008			4,958		5.70	%		283,827			4,313		6.08	%
Private Client		499,042			4,744		3.86	%		386,513			5,999		6.23	%

Total Loans (2)		8,213,792			92,944		4.56	%		4,593,488			76,113		6.65	%

Total earning assets	$	9,706,011		$	110,476		4.58	%	$	5,154,388		$	83,915		6.53	%
Allowance for loan losses		(114,414	)							(51,726	)
Cash and due from banks		89,462								53,851
Other assets		390,347								265,537

Total average assets	$	10,071,406							$	5,422,050


Liabilities:
Interest-bearing demand deposits	$	328,713		$	399		0.49	%	$	152,094		$	422		1.11	%
Regular savings deposits		15,959			25		0.63	%		14,071			59		1.68	%
Money market accounts		2,954,309			6,539		0.90	%		1,582,108			13,162		3.34	%
Time deposits		1,604,369			10,549		2.67	%		1,268,932			14,544		4.60	%
Brokered deposits		2,120,080			16,335		3.12	%		1,007,276			11,814		4.70	%

Total interest-bearing deposits		7,023,430			33,847		1.95	%		4,024,481			40,001		3.99	%
Short term borrowings		792,174			2,988		1.51	%		264,339			3,110		4.65	%
Long term borrowings		617,408			8,915		5.78	%		271,695			3,821		5.57	%

Total interest-bearing liabilities		8,433,012			45,750		2.19	%		4,560,515			46,932		4.12	%

Non-interest bearing deposits		771,578								325,368
Other liabilities		79,892								76,026
Stockholders’ equity		786,924								460,141

Total average liabilities and stockholders’ equity	$	10,071,406							$	5,422,050

Tax equivalent net interest income (3)				$	64,726							$	36,983

Net interest spread (4)							2.39	%							2.41	%
Effect of non interest-bearing funds							0.29	%							0.47	%

Net interest margin (3) (5)							2.68	%							2.88	%


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

(2)		Non-accrual loans are included in the average balances and the average annualized interest foregone on these loans was approximately $6.6 million for the quarter ended March 31, 2009 compared to approximately $2.9 million in the prior year quarter.

(3)		Reconciliation of the effect after tax equivalent adjustment to reported net interest income:


	Three months Ended March 31,
	2009		2008

Net interest income	$	63,880	$	35,957
Tax equivalent adjustment		846		1,026

Net interest income, tax equivalent basis	$	64,726	$	36,983


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

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

PrivateBancorp (PVTB) Inactive 8-KPrivateBancorp Reports First Quarter 2009 Results