Exhibit 99.1
For further information:
Investor Relations & Media Contact:
Amy Yuhn
Director of Communications
312-564-1378
ayuhn@theprivatebank.com
For Immediate Release
PrivateBancorp Reports Second Quarter 2009 Results
Strategic Growth Plan Continues to Generate Positive Results With Strong Core Fundamentals
CHICAGO, July 27, 2009 — PrivateBancorp, Inc. (NASDAQ: PVTB) today reported net income of $2.5 million, or $0.06 per diluted share, for the second quarter ended June 30, 2009, compared with a net loss of $13.7 million, or $0.49 per diluted share, for the second quarter 2008. For the six months ended June 30, 2009, net income was $7.3 million, or $0.20 per diluted share, compared to a net loss of $22.9 million, or $0.84 per diluted share, for the prior year period. The special FDIC insurance assessment of $5.1 million reduced second quarter 2009 results by $0.08 per share.
“The Strategic Growth Plan continues to generate positive results for our business,” said Larry D. Richman, President and Chief Executive Officer, PrivateBancorp, Inc. “We are pleased with another quarter of solid loan growth, although the pace of growth has slowed given the current economic environment. We continue to add new, quality clients, leading to growing deposits, improving margins and stronger net interest income this quarter. We also continue to bolster our strong capital base and strengthen our credit reserves to solidify our balance sheet.”
Notable items in the second quarter included:
| | • | | Net revenue grew 9 percent over the first quarter to $95.8 million from $88.3 million and net interest margin improved 31 basis points to 2.99%. |
| | • | | Non-interest expenses remained flat in comparison to prior quarter, excluding the impact of the $5.1 million special FDIC insurance assessment. |
| | • | | Total risk-based capital is 14.40 percent, Tier 1 capital ratio is 11.95 percent and tangible common equity ratio is 6.81 percent following a successful $217.0 million common stock offering and the conversion of the GTCR preferred shares to non-voting common shares. |
| | • | | Loans grew 3 percent, reflecting market conditions and selectivity, and deposits grew 6 percent from the first quarter. |
| | • | | Allowance for loan losses increased to $140.1 million and 1.60 percent of total loans. |
Update on Founders Bank Transaction
On July 2, 2009, the company announced that its subsidiary, The PrivateBank and Trust Company, agreed to acquire all of the non-brokered deposits and certain assets of the former Founders Bank from the FDIC, which was named receiver after the State of Illinois closed Founders Bank. Founders Bank at July 2, 2009, had approximately $843 million in deposits and approximately $592 million in loans receivable. The PrivateBank agreed to assume certain liabilities, including non-brokered deposits, of $767 million and $24 million of FHLB borrowings. Assets totaling approximately $843 million were purchased at a discount of $54 million. The agreement with the FDIC included a loss-share component that provides The PrivateBank with protection from loan losses as defined.
“This transaction marks an important step in the ongoing growth of our Company by allowing us to take advantage of the selective acquisition opportunities we contemplated as part of the Strategic Growth Plan,” Richman noted. “The 10 locations give us important deposit-gathering capabilities to strengthen our funding mix and, by extending our geographic presence around Chicago, we have access to key new markets where we can expand our core commercial banking business.”
Balance Sheet
Total assets increased to $11.0 billion at June 30, 2009, from $7.5 billion at June 30, 2008, and $10.4 billion at March 31, 2009. Total loans increased to $8.7 billion at June 30, 2009, from $6.4 billion at June 30, 2008, and $8.5 billion at March 31, 2009. Commercial loans increased to 53 percent of the Company’s total loans at the end of the second quarter 2009 from 42 percent of total loans at June 30, 2008, and 52 percent of total loans at March 31, 2009. Commercial real estate loans were 28 percent of total loans at the end of the second quarter 2009, a decrease compared to 34 percent of total loans at the end of the second quarter 2008 and unchanged in comparison to the end of the first quarter 2009.
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Total deposits were $8.3 billion at June 30, 2009, compared to $6.2 billion at June 30, 2008, and $7.8 billion at March 31, 2009. Client deposits increased to $7.4 billion at June 30, 2009, from $4.4 billion at June 30, 2008, and $6.9 billion at March 31, 2009. Client deposits at June 30, 2009, includes $1.0 billion in client CDARS® deposits. Brokered deposits (excluding client CDARS) were 11 percent of total deposits in the second quarter 2009 a decrease from 28 percent of total deposits as of June 30, 2008, and unchanged from the first quarter 2009.
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 June 30, 2009, up from $613.3 million at June 30, 2008, and unchanged from $1.5 billion at March 31, 2009.
The Company’s investment securities portfolio was $1.5 billion at June 30, 2009, compared to $726.0 million at June 30, 2008 and $1.4 billion at March 31, 2009. Net unrealized gains were $38.7 million, compared to $4.8 million at the end of the second quarter 2008, and $54.2 million at the end of the first quarter 2009. 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 $95.8 million in the second quarter 2009, from $53.1 million in the second quarter 2008, and $88.3 million in the first quarter 2009. Net interest income improved to $74.1 million in the second quarter 2009, up from $42.7 million for the second quarter 2008, and from $63.9 million in the first quarter 2009. Net interest margin (on a tax equivalent basis) was 2.99 percent for the second quarter 2009, compared to 2.75 percent for the second quarter 2008, and 2.68 percent in the first quarter 2009. The improvement in net interest margin over the first quarter 2009 was primarily the result of continued strong earning asset yields while deposits and short-term borrowings re-priced downward. Due to an increased client deposit base and repositioning of funding, the Company’s cost of funds was 38 basis points lower.
Non-interest income, excluding securities gains and losses and early extinguishment of debt, was $14.6 million in the second quarter 2009, compared to $9.2 million in the second quarter 2008, and $22.8 million in the first quarter 2009. Treasury management income was $2.1 million in the second quarter 2009 compared to $499,000 in the second quarter 2008, and $1.6 million in the first quarter 2009. Capital markets revenue was $3.8 million, compared with $2.0 million in the second quarter 2008 and $11.2 million in the first quarter 2009. Capital markets revenue in the second quarter 2009 was lower than the first quarter due to a $5 million change in the credit valuation adjustment and slower loan growth. Mortgage banking income increased to $2.7 million in the second quarter 2009, compared to $1.2 million for the second quarter 2008, and $2.2 million in the first quarter 2009. Banking and other services income was $2.1 million in the second quarter 2009, compared to $682,000 in the second quarter 2008, and $3.6 million in the first quarter 2009.
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The PrivateWealth Group’s fee revenue was down in the second quarter 2009 to $3.5 million, compared to $4.4 million in the second quarter 2008, and $3.8 million in the first quarter 2009. The PrivateWealth Group’s assets under management declined slightly to $3.2 billion at June 30, 2009, compared with $3.3 billion at June 30, 2008, and $3.2 billion at March 31, 2009. The second quarter saw higher-than-normal cash balances and withdrawals for tax payments, consistent with patterns in previous years.
Credit Quality
The second quarter 2009 provision for loan losses was $21.5 million, compared to $23.0 million in the second quarter 2008 and $17.8 million in the first quarter 2009.
The allowance for loan losses as a percentage of total loans was strengthened to 1.60 percent at June 30, 2009, compared with 1.23 percent at June 30, 2008, and 1.50 percent at March 31, 2009. Charge-offs were $12.6 million for the quarter ended June 30, 2009, offset by recoveries of $4.1 million, and $7.0 million for the quarter ended March 31, 2009, offset by recoveries of $3.6 million.
The Company had $212.8 million in total non-performing assets at June 30, 2009, compared to $73.1 million at June 30, 2008, and $191.6 million at March 31, 2009, reflecting a weakening credit environment. Non-performing assets to total assets were 1.94 percent at June 30, 2009, compared to 0.98 percent at June 30, 2008, and 1.85 percent at March 31, 2009.
The increase in provision expense and elevated levels of nonperforming loans primarily reflects ongoing deterioration experienced in the Commercial Real Estate portfolio as well as continued stress in general business conditions. The increased level of loan loss coverage reflects growth in nonperforming assets and recognition of underlying collateral values.
Expenses
Non-interest expense was $64.0 million in the second quarter, compared to $51.2 million in the second quarter 2008 and $58.1 million in the first quarter 2009. The increase over the second quarter 2008 reflects the ongoing investment in the Strategic Growth Plan throughout the year as well as the $5.1 million special FDIC assessment incurred in the second quarter 2009.
The efficiency ratio was 66.8 percent in the second quarter 2009 compared to 96.4 percent in the second quarter 2008 and 65.8 percent in the first quarter 2009.
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Capital Resources and Tangible Common Equity
As of June 30, 2009, the Company had total risk-based capital at 14.40 percent and Tier 1 risk-based capital ratio at 11.95 percent, exceeding the well-capitalized thresholds of 10 percent and 6 percent, respectively.
The Company’s tangible common equity ratio at June 30, 2009, was 6.81 percent, including the conversion of the GTCR preferred shares to non-voting common shares as well as the $217.0 million underwritten common stock offering.
About PrivateBancorp, Inc.
PrivateBancorp, Inc. is a growing diversified financial services company with 34 offices in 10 states and, as of June 30, 2009, $11.0 billion in assets. 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 families in all of the markets and communities we serve. Our website is www.theprivatebank.com.
Forward-Looking Statements: Statements contained in this news release that are not historical facts may constitute forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended. The Company’s ability to predict results or the actual effect of future plans or strategies is inherently uncertain. Factors which could 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 and our recent growth; any need to continue to increase our allowance for loan losses; unforeseen difficulties in integrating new hires; inability to retain top management personnel; insufficient liquidity or funding sources or the inability to obtain on terms acceptable to the Company the funding necessary to fund its loan growth; the failure to obtain on terms acceptable to us, or at all, the capital necessary to maintain our regulatory capital ratios above the “well-capitalized” threshold; slower than anticipated growth of the Company’s business or unanticipated business declines, including as a result of continuing negative economic conditions; 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; 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; unforeseen difficulties relating to the acquisition and integration of businesses acquired in purchase and assumption transactions; further deterioration in asset quality; any additional charges related to asset impairments; adverse developments in the Company’s loan or investment portfolios; failure to improve operating efficiencies through expense controls; competition; 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.
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PrivateBancorp, Inc.
Consolidated Income Statements
(Amounts in thousands except per share data)
(Unaudited)
| | | | | | | | | | | | | | | | | |
| | | Three Months Ended | | | Six Months Ended | |
| | | June 30, | | | June 30, | |
| | | 2009 | | | 2008 | | | 2009 | | | 2008 | |
Interest Income | | | | | | | | | | | | | | | | |
| Loans, including fees | | $ | 95,997 | | | $ | 84,213 | | | $ | 188,941 | | | $ | 160,326 | |
| Federal funds sold and other short-term investments | | | 161 | | | | 194 | | | | 449 | | | | 440 | |
| Securities: | | | | | | | | | | | | | | | | |
| Taxable | | | 13,646 | | | | 5,456 | | | | 28,192 | | | | 9,742 | |
| Exempt from Federal income taxes | | | 1,786 | | | | 2,181 | | | | 3,638 | | | | 4,425 | |
| | | | | | | | | | | | | |
Total interest income | | | 111,590 | | | | 92,044 | | | | 221,220 | | | | 174,933 | |
| | | | | | | | | | | | | | | | | |
Interest Expense | | | | | | | | | | | | | | | | |
| Interest-bearing deposits | | | 467 | | | | 425 | | | | 866 | | | | 847 | |
| Savings deposits and money market accounts | | | 6,036 | | | | 11,295 | | | | 12,600 | | | | 24,516 | |
| Brokered and other time deposits | | | 20,322 | | | | 29,955 | | | | 47,206 | | | | 56,313 | |
| Short-term borrowings | | | 1,844 | | | | 2,750 | | | | 4,832 | | | | 5,860 | |
| Long-term debt | | | 8,814 | | | | 4,907 | | | | 17,729 | | | | 8,728 | |
| | | | | | | | | | | | | |
Total interest expense | | | 37,483 | | | | 49,332 | | | | 83,233 | | | | 96,264 | |
| | | | | | | | | | | | | |
| Net interest income | | | 74,107 | | | | 42,712 | | | | 137,987 | | | | 78,669 | |
Provision for loan losses | | | 21,521 | | | | 23,023 | | | | 39,326 | | | | 40,156 | |
| | | | | | | | | | | | | |
| Net Interest Income after provision for loan losses | | | 52,586 | | | | 19,689 | | | | 98,661 | | | | 38,513 | |
| | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | |
Non-interest Income | | | | | | | | | | | | | | | | |
| The PrivateWealth Group | | | 3,500 | | | | 4,350 | | | | 7,294 | | | | 8,769 | |
| Mortgage banking | | | 2,686 | | | | 1,230 | | | | 4,861 | | | | 2,760 | |
| Capital markets products | | | 3,830 | | | | 1,959 | | | | 15,063 | | | | 2,350 | |
| Treasury management | | | 2,110 | | | | 499 | | | | 3,715 | | | | 683 | |
| Bank owned life insurance | | | 453 | | | | 437 | | | | 842 | | | | 869 | |
| Banking and other services | | | 2,054 | | | | 682 | | | | 5,648 | | | | 1,428 | |
| Net securities gains (losses) | | | 7,067 | | | | 286 | | | | 7,839 | | | | 1,100 | |
| Early extinguishment of debt | | | (985 | ) | | | — | | | | (985 | ) | | | — | |
| | | | | | | | | | | | | |
Total non-interest income | | | 20,715 | | | | 9,443 | | | | 44,277 | | | | 17,959 | |
| | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | |
Non-interest Expense | | | | | | | | | | | | | | | | |
| Salaries and employee benefits | | | 34,300 | | | | 31,815 | | | | 69,421 | | | | 59,564 | |
| Net occupancy expense | | | 6,067 | | | | 4,346 | | | | 12,127 | | | | 8,191 | |
| Technology and related costs | | | 1,967 | | | | 1,270 | | | | 4,531 | | | | 2,500 | |
| Marketing | | | 1,933 | | | | 2,721 | | | | 3,775 | | | | 5,549 | |
| Professional fees | | | 2,492 | | | | 4,357 | | | | 5,006 | | | | 6,438 | |
| Investment manager expenses | | | 556 | | | | 812 | | | | 1,165 | | | | 1,780 | |
| Net foreclosed property expenses | | | 967 | | | | 596 | | | | 1,411 | | | | 1,154 | |
| Supplies and printing | | | 392 | | | | 464 | | | | 734 | | | | 814 | |
| Postage, telephone, and delivery | | | 821 | | | | 547 | | | | 1,402 | | | | 1,088 | |
| Insurance | | | 9,157 | | | | 1,737 | | | | 12,989 | | | | 2,607 | |
| Amortization of intangibles | | | 325 | | | | 422 | | | | 654 | | | | 656 | |
| Other expenses | | | 5,018 | | | | 2,118 | | | | 8,837 | | | | 3,796 | |
| | | | | | | | | | | | | |
Total non-interest expense | | | 63,995 | | | | 51,205 | | | | 122,052 | | | | 94,137 | |
| | | | | | | | | | | | | |
| Income (loss) before income taxes | | | 9,306 | | | | (22,073 | ) | | | 20,886 | | | | (37,665 | ) |
| Income tax provision (benefit) | | | 3,372 | | | | (8,642 | ) | | | 7,781 | | | | (15,144 | ) |
| | | | | | | | | | | | | |
Net income (loss) | | | 5,934 | | | | (13,431 | ) | | | 13,105 | | | | (22,521 | ) |
| Net income attributable to noncontrolling interests | | | 57 | | | | 102 | | | | 117 | | | | 170 | |
| | | | | | | | | | | | | |
Net income (loss) attributable to controlling interests | | | 5,877 | | | | (13,533 | ) | | | 12,988 | | | | (22,691 | ) |
| Preferred stock dividends and discount accretion | | | 3,399 | | | | 147 | | | | 5,669 | | | | 254 | |
| | | | | | | | | | | | | |
Net income (loss) available to common stockholders | | $ | 2,478 | | | $ | (13,680 | ) | | $ | 7,319 | | | $ | (22,945 | ) |
| | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | |
Net Earnings per Common Share Data | | | | | | | | | | | | | | | | |
| Basic | | $ | 0.06 | | | $ | (0.49 | ) | | $ | 0.21 | | | $ | (0.84 | ) |
| Diluted | | $ | 0.06 | | | $ | (0.49 | ) | | $ | 0.20 | | | $ | (0.84 | ) |
| Dividends | | $ | 0.010 | | | $ | 0.075 | | | $ | 0.020 | | | $ | 0.150 | |
| Weighted Average Common Shares Outstanding | | | 38,015 | | | | 27,914 | | | | 35,039 | | | | 27,400 | |
| Diluted Average Common Shares Outstanding | | | 39,795 | | | | 27,914 | | | | 36,956 | | | | 27,400 | |
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:For the three and six months ended June 30, 2008 diluted shares are equal to basic shares due to the net loss. The calculation of diluted earnings per share results in anti-dilution.
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PrivateBancorp, Inc.
Quarterly Consolidated Income Statements
(Amounts in thousands except per share data)
(Unaudited)
| | | | | | | | | | | | | | | | | | | | | |
| | | 2Q09 | | | 1Q09 | | | 4Q08 | | | 3Q08 | | | 2Q08 | |
Interest Income | | | | | | | | | | | | | | | | | | | | |
| Loans, including fees | | $ | 95,997 | | | $ | 92,944 | | | $ | 107,370 | | | $ | 99,408 | | | $ | 84,213 | |
| Federal funds sold and other short-term investments | | | 161 | | | | 288 | | | | 488 | | | | 217 | | | | 194 | |
| Securities: | | | | | | | | | | | | | | | | | | | | |
| Taxable | | | 13,646 | | | | 14,546 | | | | 10,754 | | | | 8,161 | | | | 5,456 | |
| Exempt from Federal income taxes | | | 1,786 | | | | 1,852 | | | | 2,025 | | | | 2,027 | | | | 2,181 | |
| | | | | | | | | | | | | | | | |
Total interest income | | | 111,590 | | | | 109,630 | | | | 120,637 | | | | 109,813 | | | | 92,044 | |
| | | | | | | | | | | | | | | | | | | | | |
Interest Expense | | | | | | | | | | | | | | | | | | | | |
| Interest-bearing deposits | | | 467 | | | | 399 | | | | 285 | | | | 383 | | | | 425 | |
| Savings deposits and money market accounts | | | 6,036 | | | | 6,564 | | | | 11,579 | | | | 12,785 | | | | 11,295 | |
| Brokered and other time deposits | | | 20,322 | | | | 26,884 | | | | 36,405 | | | | 33,598 | | | | 29,955 | |
| Short-term borrowings | | | 1,844 | | | | 2,988 | | | | 3,416 | | | | 3,511 | | | | 2,750 | |
| Long-term debt | | | 8,814 | | | | 8,915 | | | | 9,805 | | | | 6,957 | | | | 4,907 | |
| | | | | | | | | | | | | | | | |
Total interest expense | | | 37,483 | | | | 45,750 | | | | 61,490 | | | | 57,234 | | | | 49,332 | |
| | | | | | | | | | | | | | | | |
| Net interest income | | | 74,107 | | | | 63,880 | | | | 59,147 | | | | 52,579 | | | | 42,712 | |
Provision for loan losses | | | 21,521 | | | | 17,805 | | | | 119,250 | | | | 30,173 | | | | 23,023 | |
| | | | | | | | | | | | | | | | |
| Net Interest Income after provision for loan losses | | | 52,586 | | | | 46,075 | | | | (60,103 | ) | | | 22,406 | | | | 19,689 | |
| | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | |
Non-interest Income | | | | | | | | | | | | | | | | | | | | |
| The PrivateWealth Group | | | 3,500 | | | | 3,794 | | | | 4,140 | | | | 4,059 | | | | 4,350 | |
| Mortgage banking | | | 2,686 | | | | 2,175 | | | | 622 | | | | 776 | | | | 1,230 | |
| Capital markets products | | | 3,830 | | | | 11,233 | | | | 4,767 | | | | 3,932 | | | | 1,959 | |
| Treasury management | | | 2,110 | | | | 1,605 | | | | 1,086 | | | | 600 | | | | 499 | |
| Bank owned life insurance | | | 453 | | | | 389 | | | | 501 | | | | 439 | | | | 437 | |
| Banking and other services | | | 2,054 | | | | 3,594 | | | | 1,297 | | | | 1,728 | | | | 682 | |
| Net securities gains (losses) | | | 7,067 | | | | 772 | | | | (770 | ) | | | 180 | | | | 286 | |
| Early extinguishment of debt | | | (985 | ) | | | — | | | | — | | | | — | | | | — | |
| | | | | | | | | | | | | | | | |
Total non-interest income | | | 20,715 | | | | 23,562 | | | | 11,643 | | | | 11,714 | | | | 9,443 | |
| | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | |
Non-interest Expense | | | | | | | | | | | | | | | | | | | | |
| Salaries and employee benefits | | | 34,300 | | | | 35,121 | | | | 28,219 | | | | 28,895 | | | | 31,815 | |
| Net occupancy expense | | | 6,067 | | | | 6,060 | | | | 4,543 | | | | 4,364 | | | | 4,346 | |
| Technology and related costs | | | 1,967 | | | | 2,564 | | | | 2,019 | | | | 1,791 | | | | 1,270 | |
| Marketing | | | 1,933 | | | | 1,842 | | | | 2,781 | | | | 2,095 | | | | 2,721 | |
| Professional fees | | | 2,492 | | | | 2,514 | | | | 4,714 | | | | 2,802 | | | | 4,357 | |
| Investment manager expenses | | | 556 | | | | 609 | | | | 690 | | | | 829 | | | | 812 | |
| Net foreclosed property expenses | | | 967 | | | | 444 | | | | 4,605 | | | | 458 | | | | 596 | |
| Supplies and printing | | | 392 | | | | 342 | | | | 461 | | | | 352 | | | | 464 | |
| Postage, telephone, and delivery | | | 821 | | | | 581 | | | | 563 | | | | 575 | | | | 547 | |
| Insurance | | | 9,157 | | | | 3,832 | | | | 2,341 | | | | 2,460 | | | | 1,737 | |
| Amortization of intangibles | | | 325 | | | | 329 | | | | 267 | | | | 241 | | | | 422 | |
| Other expenses | | | 5,018 | | | | 3,819 | | | | 3,700 | | | | 2,223 | | | | 2,118 | |
| | | | | | | | | | | | | | | | |
Total non-interest expense | | | 63,995 | | | | 58,057 | | | | 54,903 | | | | 47,085 | | | | 51,205 | |
| | | | | | | | | | | | | | | | |
| Income (loss) before income taxes | | | 9,306 | | | | 11,580 | | | | (103,363 | ) | | | (12,965 | ) | | | (22,073 | ) |
| Income tax provision (benefit) | | | 3,372 | | | | 4,409 | | | | (40,783 | ) | | | (5,430 | ) | | | (8,642 | ) |
| | | | | | | | | | | | | | | | |
Net income (loss) | | | 5,934 | | | | 7,171 | | | | (62,580 | ) | | | (7,535 | ) | | | (13,431 | ) |
| Net income attributable to noncontrolling interests | | | 57 | | | | 60 | | | | 53 | | | | 86 | | | | 102 | |
| | | | | | | | | | | | | | | | |
Net income (loss) attributable to controlling interests | | | 5,877 | | | | 7,111 | | | | (62,633 | ) | | | (7,621 | ) | | | (13,533 | ) |
| Preferred stock dividends and discount accretion | | | 3,399 | | | | 2,270 | | | | 146 | | | | 146 | | | | 147 | |
| | | | | | | | | | | | | | | | |
Net income (loss) available to common stockholders | | $ | 2,478 | | | $ | 4,841 | | | $ | (62,779 | ) | | $ | (7,767 | ) | | $ | (13,680 | ) |
| | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | |
Net Earnings per Common Share Data | | | | | | | | | | | | | | | | | | | | |
| Basic | | $ | 0.06 | | | $ | 0.15 | | | $ | (1.98 | ) | | $ | (0.25 | ) | | $ | (0.49 | ) |
| Diluted | | $ | 0.06 | | | $ | 0.14 | | | $ | (1.98 | ) | | $ | (0.25 | ) | | $ | (0.49 | ) |
| Dividends | | $ | 0.01 | | | $ | 0.01 | | | $ | 0.075 | | | $ | 0.075 | | | $ | 0.075 | |
| Weighted Average Common Shares Outstanding | | | 38,015 | | | | 32,030 | | | | 31,733 | | | | 31,634 | | | | 27,914 | |
| Diluted Average Common Shares Outstanding | | | 39,795 | | | | 34,304 | | | | 31,733 | | | | 31,634 | | | | 27,914 | |
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:For the second, third and fourth quarter 2008 diluted shares are equal to basic shares due to the net loss. The calculation of diluted earnings per share during those periods results in anti-dilution.
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PrivateBancorp, Inc.
Consolidated Balance Sheets
(dollars in thousands)
| | | | | | | | | | | | | | | | | | | | | |
| | | 06/30/09 | | | 03/31/09 | | | 12/31/08 | | | 09/30/08 | | | 06/30/08 | |
| | | unaudited | | | unaudited | | | unaudited | | | unaudited | | | unaudited | |
Assets | | | | | | | | | | | | | | | | | | | | |
| Cash and due from banks | | $ | 99,088 | | | $ | 96,712 | | | $ | 131,848 | | | $ | 76,314 | | | $ | 76,924 | |
| Fed funds sold and other short-term investments | | | 393,953 | | | $ | 83,626 | | | | 98,387 | | | | 363,991 | | | | 41,034 | |
| Mortgages held for sale | | | 23,825 | | | | 11,298 | | | | 17,082 | | | | 6,736 | | | | 10,988 | |
| Securities available-for-sale, at fair value | | | 1,443,648 | | | | 1,385,244 | | | | 1,425,564 | | | | 899,301 | | | | 712,158 | |
| Non-marketable equity investments | | | 28,586 | | | | 28,035 | | | | 27,213 | | | | 18,958 | | | | 13,807 | |
| Loans, net of unearned fees | | | 8,728,926 | | | | 8,483,641 | | | | 8,036,807 | | | | 7,441,137 | | | | 6,417,026 | |
| Allowance for loan losses | | | (140,088 | ) | | | (127,011 | ) | | | (112,672 | ) | | | (102,223 | ) | | | (79,021 | ) |
| | | | | | | | | | | | | | | | |
| Loans, net of allowance for loan losses and unearned fees | | | 8,588,838 | | | | 8,356,630 | | | | 7,924,135 | | | | 7,338,914 | | | | 6,338,005 | |
| | | | | | | | | | | | | | | | |
| Other real estate owned | | | 29,236 | | | | 28,703 | | | | 23,823 | | | | 18,465 | | | | 14,579 | |
| Premises, furniture, and equipment, net | | | 33,162 | | | | 33,179 | | | | 34,201 | | | | 29,650 | | | | 27,513 | |
| Accrued interest receivable | | | 30,867 | | | | 30,627 | | | | 34,282 | | | | 32,466 | | | | 27,809 | |
| Investment in bank owned life insurance | | | 46,780 | | | | 46,327 | | | | 45,938 | | | | 45,438 | | | | 44,999 | |
| Goodwill | | | 95,045 | | | | 95,045 | | | | 95,045 | | | | 95,045 | | | | 95,045 | |
| Derivative assets | | | 64,111 | | | | 91,785 | | | | 74,570 | | | | 10,976 | | | | 5,342 | |
| Other assets | | | 112,211 | | | | 88,503 | | | | 108,449 | | | | 74,988 | | | | 70,295 | |
| | | | | | | | | | | | | | | | |
| Total assets | | $ | 10,989,350 | | | $ | 10,375,714 | | | $ | 10,040,537 | | | $ | 9,011,242 | | | $ | 7,478,498 | |
| | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | |
Liabilities | | | | | | | | | | | | | | | | | | | | |
| Demand deposits: | | | | | | | | | | | | | | | | | | | | |
| Non-interest bearing | | $ | 1,243,453 | | | $ | 954,311 | | | $ | 711,693 | | | $ | 601,653 | | | $ | 548,710 | |
| Interest bearing | | | 535,374 | | | | 428,529 | | | | 232,099 | | | | 164,318 | | | | 164,541 | |
| Savings deposits and money market accounts | | | 3,129,384 | | | | 3,021,268 | | | | 2,798,882 | | | | 2,407,641 | | | | 2,086,929 | |
Brokered deposits(1) | | | 1,943,065 | | | | 1,740,960 | | | | 2,654,768 | | | | 2,749,735 | | | | 1,889,401 | |
| Other time deposits | | | 1,426,874 | | | | 1,671,520 | | | | 1,599,014 | | | | 1,526,601 | | | | 1,466,369 | |
| | | | | | | | | | | | | | | | |
| Total deposits | | | 8,278,150 | | | | 7,816,588 | | | | 7,996,456 | | | | 7,449,948 | | | | 6,155,950 | |
| Short-term borrowings | | | 892,706 | | | | 834,466 | | | | 654,765 | | | | 312,490 | | | | 194,490 | |
| Long-term debt | | | 606,793 | | | | 710,793 | | | | 618,793 | | | | 523,792 | | | | 418,784 | |
| Accrued interest payable | | | 18,809 | | | | 23,775 | | | | 37,623 | | | | 32,121 | | | | 30,007 | |
| Derivative liabilities | | | 63,034 | | | | 89,482 | | | | 76,068 | | | | 11,788 | | | | 5,342 | |
| Other liabilities | | | 50,480 | | | | 34,382 | | | | 51,266 | | | | 40,372 | | | | 27,543 | |
| | | | | | | | | | | | | | | | |
| Total liabilities | | | 9,909,972 | | | | 9,509,486 | | | | 9,434,971 | | | | 8,370,511 | | | | 6,832,116 | |
| | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | |
Stockholders’ Equity | | | | | | | | | | | | | | | | | | | | |
| Preferred stock | | | 236,808 | | | | 294,546 | | | | 58,070 | | | | 58,070 | | | | 58,070 | |
| Common stock | | | 46,548 | | | | 32,543 | | | | 32,468 | | | | 32,147 | | | | 31,944 | |
| Treasury stock | | | (18,223 | ) | | | (17,338 | ) | | | (17,285 | ) | | | (15,626 | ) | | | (14,150 | ) |
| Additional paid-in-capital | | | 761,068 | | | | 495,811 | | | | 482,347 | | | | 476,172 | | | | 469,112 | |
| Retained earnings | | | 28,896 | | | | 26,875 | | | | 22,365 | | | | 87,753 | | | | 98,039 | |
| Accumulated other comprehensive income, net | | | 24,131 | | | | 33,698 | | | | 27,568 | | | | 1,927 | | | | 3,164 | |
| | | | | | | | | | | | | | | | |
| Controlling interest stockholders’ equity | | | 1,079,228 | | | | 866,135 | | | | 605,533 | | | | 640,443 | | | | 646,179 | |
| | | | | | | | | | | | | | | | |
| Noncontrolling interests | | | 150 | | | | 93 | | | | 33 | | | | 288 | | | | 203 | |
| | | | | | | | | | | | | | | | |
| Total stockholders’ equity | | | 1,079,378 | | | | 866,228 | | | | 605,566 | | | | 640,731 | | | | 646,382 | |
| | | | | | | | | | | | | | | | |
| Total liabilities and stockholders’ equity | | $ | 10,989,350 | | | $ | 10,375,714 | | | $ | 10,040,537 | | | $ | 9,011,242 | | | $ | 7,478,498 | |
| | | | | | | | | | | | | | | | |
| | | |
| (1) | | Computed as the sum of traditional brokered deposits, client CDARs and non-client CDARs. Client CDARs for the second quarter 2008 through the second quarter 2009 were $124.4 million, $306.2 million, $679.0 million, $865.7 million and $1.0 billion and are included in client deposits. |
8
PrivateBancorp, Inc.
Selected Financial Data
Unaudited
(amounts in thousands except per share data)
| | | | | | | | | | | | | | | | | | | | | |
| | | 2Q09 | | | 1Q09 | | | 4Q08 | | | 3Q08 | | | 2Q08 | |
| |
Selected Statement of Income Data: | | | | | | | | | | | | | | | | | | | | |
| Net interest income | | $ | 74,107 | | | $ | 63,880 | | | $ | 59,147 | | | $ | 52,579 | | | $ | 42,712 | |
| Net revenue (1) | | $ | 95,821 | | | $ | 88,288 | | | $ | 71,707 | | | $ | 65,211 | | | $ | 53,147 | |
| Income (loss) before taxes | | $ | 9,306 | | | $ | 11,580 | | | $ | (103,363 | ) | | $ | (12,965 | ) | | $ | (22,073 | ) |
| Net income (loss) available to common stockholders | | $ | 2,478 | | | $ | 4,841 | | | $ | (62,779 | ) | | $ | (7,767 | ) | | $ | (13,680 | ) |
| | | | | | | | | | | | | | | | | | | | | |
Per Common Share Data: | | | | | | | | | | | | | | | | | | | | |
| Basic earnings per share | | $ | 0.06 | | | $ | 0.15 | | | $ | (1.98 | ) | | $ | (0.25 | ) | | $ | (0.49 | ) |
| Diluted earnings per share (2) | | $ | 0.06 | | | $ | 0.14 | | | $ | (1.98 | ) | | $ | (0.25 | ) | | $ | (0.49 | ) |
| Dividends | | $ | 0.01 | | | $ | 0.01 | | | $ | 0.075 | | | $ | 0.075 | | | $ | 0.075 | |
| Book value (period end) (3) | | $ | 17.74 | | | $ | 16.96 | | | $ | 16.31 | | | $ | 17.34 | | | $ | 17.68 | |
| Tangible book value (period end) (4) | | $ | 15.62 | | | $ | 13.96 | | | $ | 13.28 | | | $ | 14.33 | | | $ | 14.63 | |
| Market value (close) | | $ | 22.24 | | | $ | 14.46 | | | $ | 32.46 | | | $ | 41.66 | | | $ | 30.38 | |
| Book value multiple | | | 1.25 | x | | | 0.85 | x | | | 1.99 | x | | | 2.40 | x | | | 1.72 | x |
| | | | | | | | | | | | | | | | | | | | | |
Share Data: | | | | | | | | | | | | | | | | | | | | |
| Weighted Average Common Shares Outstanding | | | 38,015 | | | | 32,030 | | | | 31,733 | | | | 31,634 | | | | 27,914 | |
| Diluted Average Common Shares Outstanding (2) | | | 39,795 | | | | 34,304 | | | | 31,733 | | | | 31,634 | | | | 27,914 | |
| Common shares issued (at period end) | | | 46,064 | | | | 34,180 | | | | 34,043 | | | | 34,028 | | | | 33,656 | |
| Common shares outstanding (at period end) | | | 47,493 | | | | 33,702 | | | | 33,568 | | | | 33,604 | | | | 33,275 | |
| | | | | | | | | | | | | | | | | | | | | |
Performance Ratios: | | | | | | | | | | | | | | | | | | | | |
| Return on average assets | | | 0.23 | % | | | 0.29 | % | | | -2.63 | % | | | -0.37 | % | | | -0.81 | % |
| Return on average common equity | | | 1.45 | % | | | 3.48 | % | | | -45.11 | % | | | -5.40 | % | | | -11.13 | % |
| Fee revenue as a percent of total revenue (5) | | | 16.49 | % | | | 26.29 | % | | | 17.35 | % | | | 17.99 | % | | | 17.65 | % |
| Non-interest income to average assets | | | 0.80 | % | | | 0.95 | % | | | 0.49 | % | | | 0.57 | % | | | 0.57 | % |
| Non-interest expense to average assets | | | 2.47 | % | | | 2.34 | % | | | 2.31 | % | | | 2.28 | % | | | 3.07 | % |
| Net overhead ratio (6) | | | 1.67 | % | | | 1.39 | % | | | 1.82 | % | | | 1.71 | % | | | 2.50 | % |
| Efficiency ratio (7) | | | 66.79 | % | | | 65.76 | % | | | 76.57 | % | | | 72.20 | % | | | 96.35 | % |
| | | | | | | | | | | | | | | | | | | | | |
Selected Financial Condition Data: | | | | | | | | | | | | | | | | | | | | |
| The Private Wealth Group assets under management | | $ | 3,171,697 | | | $ | 3,164,158 | | | $ | 3,261,061 | | | $ | 3,354,212 | | | $ | 3,305,477 | |
| | | | | | | | | | | | | | | | | | | | | |
Balance Sheet Ratios: | | | | | | | | | | | | | | | | | | | | |
| Loans to Deposits (period end) | | | 105.45 | % | | | 108.53 | % | | | 100.50 | % | | | 99.88 | % | | | 104.24 | % |
| Average interest-earning assets to average interest-bearing liabilities | | | 120.58 | % | | | 115.10 | % | | | 112.30 | % | | | 113.29 | % | | | 112.34 | % |
| | | | | | | | | | | | | | | | | | | | | |
Capital Ratios (period end): | | | | | | | | | | | | | | | | | | | | |
| Total equity to total assets | | | 9.82 | % | | | 8.35 | % | | | 6.03 | % | | | 7.11 | % | | | 8.64 | % |
| Total risk-based | | | 14.40 | % | | | 12.63 | % | | | 10.32 | % | | | 12.08 | % | | | 13.48 | % |
| Tier-1 risk-based | | | 11.95 | % | | | 10.13 | % | | | 7.24 | % | | | 9.21 | % | | | 10.84 | % |
| Leverage | | | 11.67 | % | | | 9.79 | % | | | 7.17 | % | | | 9.29 | % | | | 11.48 | % |
| Tangible common equity to tangible assets (8) | | | 6.81 | % | | | 4.58 | % | | | 4.49 | % | | | 5.40 | % | | | 6.60 | % |
| | | |
| (1) | | Computed as the sum of net interest income on a tax equivalent basis and non-interest income. The quarterly tax equivalent adjustments for the second quarter 2008 through the second quarter 2009 were $992,000, $918,000, $917,000, $846,000 and $999,000, 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) | | Computed as total common equity divided by outstanding shares at end of period. |
| |
| (4) | | Computed as total common equity less goodwill and other intangibles divided by outstanding shares at end of period. This is a non-GAAP financial measure. |
| |
| (5) | | Computed as non-interest income less securities gains (losses), net and early extinguishment of debt divided by the sum of net interest income and non-interest income less securities gains (losses), net and early extinguishment of debt. |
| |
| (6) | | Computed as non-interest expense less non-interest income divided by average total assets. |
| |
| (7) | | Computed as non-interest expense divided by the sum of net interest income on a tax equivalent basis and non-interest income. The quarterly tax equivalent adjustments for the second quarter 2008 through the second quarter 2009 were $992,000, $918,000, $917,000, $846,000 and $999,000, respectively. |
| |
| (8) | | Computed as tangible common equity divided by tangible assets, where tangible common equity equals total equity less preferred stock, goodwill and other intangible assets and tangible assets equals total assets less goodwill and other intangible assets. This is a non-GAAP financial measure. |
9
PrivateBancorp, Inc.
Asset Quality
Unaudited
(dollars in thousands)
| | | | | | | | | | | | | | | | | | | | | |
| | | 2Q09 | | | 1Q09 | | | 4Q08 | | | 3Q08 | | | 2Q08 | |
Credit Quality Key Ratios: | | | | | | | | | | | | | | | | | | | | |
| Net charge-offs to average loans | | | 0.39 | % | | | 0.17 | % | | | 5.49 | % | | | 0.40 | % | | | 0.42 | % |
| Total non-performing loans to total loans | | | 2.10 | % | | | 1.92 | % | | | 1.64 | % | | | 1.18 | % | | | 0.91 | % |
| Total non-performing assets to total assets | | | 1.94 | % | | | 1.85 | % | | | 1.55 | % | | | 1.18 | % | | | 0.98 | % |
| Nonaccrual loans to: | | | | | | | | | | | | | | | | | | | | |
| total loans | | | 2.10 | % | | | 1.92 | % | | | 1.64 | % | | | 1.18 | % | | | 0.89 | % |
| total assets | | | 1.67 | % | | | 1.57 | % | | | 1.31 | % | | | 0.98 | % | | | 0.77 | % |
| Allowance for loan losses to: | | | | | | | | | | | | | | | | | | | | |
| total loans | | | 1.60 | % | | | 1.50 | % | | | 1.40 | % | | | 1.37 | % | | | 1.23 | % |
| non-performing loans | | | 76 | % | | | 78 | % | | | 85 | % | | | 116 | % | | | 135 | % |
| nonaccrual loans | | | 76 | % | | | 78 | % | | | 85 | % | | | 116 | % | | | 138 | % |
| | | | | | | | | | | | | | | | | | | | | |
Non-performing assets: | | | | | | | | | | | | | | | | | | | | |
| Loans past due 90 days and accruing | | $ | 0 | | | $ | 0 | | | $ | 0 | | | $ | 0 | | | $ | 1,180 | |
| Nonaccrual loans | | | 183,526 | | | | 162,896 | | | | 131,919 | | | | 88,057 | | | | 57,348 | |
| OREO | | | 29,236 | | | | 28,703 | | | | 23,823 | | | | 18,465 | | | | 14,579 | |
| | | | | | | | | | | | | | | | |
| Total non-performing assets | | $ | 212,762 | | | $ | 191,599 | | | $ | 155,742 | | | $ | 106,522 | | | $ | 73,107 | |
| | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | |
Allowance for Loan Losses Summary | | | | | | | | | | | | | | | | | | | | |
| Balance at beginning of period | | $ | 127,011 | | | $ | 112,672 | | | $ | 102,223 | | | $ | 79,021 | | | $ | 61,974 | |
| Provision | | | 21,521 | | | | 17,805 | | | | 119,250 | | | | 30,173 | | | | 23,023 | |
| Loans charged off | | | (12,580 | ) | | | (7,037 | ) | | | (109,459 | ) | | | (7,017 | ) | | | (6,097 | ) |
| Recoveries | | | 4,136 | | | | 3,571 | | | | 658 | | | | 46 | | | | 121 | |
| | | | | | | | | | | | | | | | |
| Balance at end of period | | $ | 140,088 | | | $ | 127,011 | | | $ | 112,672 | | | $ | 102,223 | | | $ | 79,021 | |
| | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | |
Net loan charge-offs (recoveries): | | | | | | | | | | | | | | | | | | | | |
| Commercial | | $ | 891 | | | $ | 4,187 | | | $ | 11,010 | | | $ | 1,469 | | | $ | 1,109 | |
| Commercial Real Estate | | | (34 | ) | | | (250 | ) | | | 45,237 | | | | 2,349 | | | | 1,764 | |
| Construction | | | (443 | ) | | | (1,242 | ) | | | 47,081 | | | | 2,507 | | | | 2,555 | |
| Residential Real Estate | | | (88 | ) | | | (2 | ) | | | 2,385 | | | | 46 | | | | 426 | |
| Home Equity | | | 251 | | | | 9 | | | | 1,781 | | | | 50 | | | | 33 | |
| Personal | | | 7,867 | | | | 764 | | | | 1,307 | | | | 550 | | | | 89 | |
| | | | | | | | | | | | | | | | |
| Total net loan charge-offs | | $ | 8,444 | | | $ | 3,466 | | | $ | 108,801 | | | $ | 6,971 | | | $ | 5,976 | |
| | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | |
Loans past due 30-89 days and still accruing by type: | | | | | | | | | | | | | | | | | | | | |
| Commercial | | $ | 4,250 | | | $ | 23,953 | | | $ | 12,060 | | | $ | 5,867 | | | $ | 5,983 | |
| Commercial Real Estate | | | 35,541 | | | | 55,881 | | | | 9,113 | | | | 18,473 | | | | 8,282 | |
| Construction | | | 11,012 | | | | 7,196 | | | | 9,166 | | | | 19,113 | | | | 7,062 | |
| Residential Real Estate | | | 2,888 | | | | 5,606 | | | | 3,485 | | | | 3,104 | | | | 1,121 | |
| Personal and Home Equity | | | 5,705 | | | | 7,804 | | | | 1,580 | | | | 3,400 | | | | 7,631 | |
| | | | | | | | | | | | | | | | |
| Total | | $ | 59,396 | | | $ | 100,440 | | | $ | 35,404 | | | $ | 49,957 | | | $ | 30,079 | |
| | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | |
Loans past due 30-89 days and still accruing as a percent of total loan type: | | | | | | | | | | | | | | | | | | | | |
| Commercial | | | 0.09 | % | | | 0.54 | % | | | 0.30 | % | | | 0.17 | % | | | 0.22 | % |
| Commercial Real Estate | | | 1.45 | % | | | 2.38 | % | | | 0.38 | % | | | 0.77 | % | | | 0.38 | % |
| Construction | | | 1.27 | % | | | 0.86 | % | | | 1.12 | % | | | 2.69 | % | | | 1.00 | % |
| Residential Real Estate | | | 0.90 | % | | | 1.68 | % | | | 1.06 | % | | | 0.83 | % | | | 0.35 | % |
| Personal and Home Equity | | | 1.11 | % | | | 1.39 | % | | | 0.30 | % | | | 0.69 | % | | | 1.65 | % |
| | | | | | | | | | | | | | | | |
| Total | | | 0.68 | % | | | 1.18 | % | | | 0.44 | % | | | 0.67 | % | | | 0.47 | % |
10
PrivateBancorp, Inc.
Loan Mix
Unaudited
(dollars in thousands)
| | | | | | | | | | | | | | | | | | | | | |
| | | 06/30/09 | | | 03/31/09 | | | 12/31/08 | | | 09/30/08 | | | 06/30/08 | |
| Commercial and Industrial | | $ | 3,682,155 | | | $ | 3,531,439 | | | $ | 3,437,130 | | | $ | 2,957,507 | | | $ | 2,292,960 | |
| Owner-Occupied CRE | | | 899,315 | | | | 872,656 | | | | 538,688 | | | | 499,964 | | | | 451,455 | |
| | | | | | | | | | | | | | | | |
| Total Commercial Loans | | | 4,581,470 | | | | 4,404,095 | | | | 3,975,818 | | | | 3,457,471 | | | | 2,744,415 | |
| | | | | | | | | | | | | | | | |
| Commercial Real Estate | | | 1,954,692 | | | | 1,825,805 | | | | 1,980,271 | | | $ | 2,049,047 | | | $ | 1,838,301 | |
| Multi-family CRE | | | 492,896 | | | | 520,455 | | | | 403,690 | | | | 353,879 | | | | 349,220 | |
| | | | | | | | | | | | | | | | |
| Total CRE Loans | | | 2,447,588 | | | | 2,346,260 | | | | 2,383,961 | | | | 2,402,926 | | | | 2,187,521 | |
| | | | | | | | | | | | | | | | |
| Construction | | | 867,660 | | | | 837,952 | | | | 815,150 | | | | 711,606 | | | | 705,503 | |
| Residential Real Estate | | | 319,762 | | | | 332,736 | | | | 328,138 | | | | 374,488 | | | | 318,358 | |
| Home Equity | | | 215,087 | | | | 205,872 | | | | 191,934 | | | | 176,094 | | | | 164,771 | |
Personal(1) | | | 297,359 | | | | 356,726 | | | | 341,806 | | | | 318,552 | | | | 296,458 | |
| | | | | | | | | | | | | | | | |
| Total Loans | | $ | 8,728,926 | | | $ | 8,483,641 | | | $ | 8,036,807 | | | $ | 7,441,137 | | | $ | 6,417,026 | |
| | | | | | | | | | | | | | | | |
| | | |
| (1) | | The personal loan category includes overdrafts. |
11
PrivateBancorp, Inc.
Deposits
Unaudited
(dollars in thousands)
| | | | | | | | | | | | | | | | | | | | | |
| | | 06/30/09 | | | 03/31/09 | | | 12/31/08 | | | 09/30/08 | | | 06/30/08 | |
| Non-interest bearing deposits | | $ | 1,243,453 | | | $ | 954,311 | | | $ | 711,693 | | | $ | 601,653 | | | $ | 548,710 | |
| Interest-bearing deposits | | | 535,374 | | | | 428,529 | | | | 232,099 | | | | 164,318 | | | | 164,541 | |
| Savings deposits | | | 19,852 | | | | 16,745 | | | | 15,644 | | | | 17,709 | | | | 15,810 | |
| Money market accounts | | | 3,109,532 | | | | 3,004,523 | | | | 2,783,238 | | | | 2,389,932 | | | | 2,071,119 | |
| Brokered deposits: | | | | | | | | | | | | | | | | | | | | |
| Traditional brokered deposits | | | 708,802 | | | | 768,488 | | | | 1,481,762 | | | | 1,901,620 | | | | 1,507,145 | |
| Client CDARS | | | 1,047,082 | | | | 865,656 | | | | 678,958 | | | | 306,185 | | | | 124,449 | |
| Non-client CDARS | | | 187,181 | | | | 106,816 | | | | 494,048 | | | | 541,930 | | | | 257,807 | |
| | | | | | | | | | | | | | | | |
| Total brokered deposits | | | 1,943,065 | | | | 1,740,960 | | | | 2,654,768 | | | | 2,749,735 | | | | 1,889,401 | |
| Other time deposits | | | 1,426,874 | | | | 1,671,520 | | | | 1,599,014 | | | | 1,526,601 | | | | 1,466,369 | |
| | | | | | | | | | | | | | | | |
| Total deposits | | $ | 8,278,150 | | | $ | 7,816,588 | | | $ | 7,996,456 | | | $ | 7,449,948 | | | $ | 6,155,950 | |
| | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | |
| Client deposits (1) | | $ | 7,382,167 | | | $ | 6,941,284 | | | $ | 6,020,646 | | | $ | 5,006,398 | | | $ | 4,390,998 | |
| | | |
| (1) | | Client deposits are equal to total deposits less brokered deposits plus client CDARSTM. |
| |
| n/m | | Not meaningful. |
12
PrivateBancorp, Inc.
Net Interest Margin
Unaudited
(dollars in thousands)
| | | | | | | | | | | | | | | | | | | | | | | | | |
| | | Three Months Ended June 30, | |
| | | 2009 | | | 2008 (1) | |
| | | Average | | | | | | | | | | | Average | | | | | | | |
| | | Balance | | | Interest | | | Rate | | | Balance | | | Interest | | | Rate | |
Assets: | | | | | | | | | | | | | | | | | | | | | | | | |
| Fed funds sold and other short-term investments | | $ | 78,153 | | | $ | 161 | | | | 0.82 | % | | $ | 22,221 | | | $ | 194 | | | | 3.47 | % |
| Securities: | | | | | | | | | | | | | | | | | | | | | | | | |
| Taxable | | | 1,154,418 | | | | 13,646 | | | | 4.73 | % | | | 440,101 | | | | 5,456 | | | | 4.96 | % |
| Tax exempt | | | 161,957 | | | | 2,785 | | | | 6.88 | % | | | 190,236 | | | | 3,173 | | | | 6.67 | % |
| | | | | | | | | | | | | | | | | | | |
| Total securities | | | 1,316,375 | | | | 16,431 | | | | 4.99 | % | | | 630,337 | | | | 8,629 | | | | 5.48 | % |
| | | | | | | | | | | | | | | | | | | | | |
| Loans: | | | | | | | | | | | | | | | | | | | | | | | | |
| Commercial, Construction & CRE | | | 7,775,014 | | | | 86,419 | | | | 4.43 | % | | | 5,015,049 | | | | 74,392 | | | | 5.95 | % |
| Residential | | | 344,180 | | | | 4,646 | | | | 5.40 | % | | | 310,872 | | | | 4,475 | | | | 5.76 | % |
| Private Client | | | 502,754 | | | | 4,932 | | | | 3.94 | % | | | 410,155 | | | | 5,346 | | | | 5.23 | % |
| | | | | | | | | | | | | | | | | | | |
| Total loans (2) | | | 8,621,948 | | | | 95,997 | | | | 4.44 | % | | | 5,736,076 | | | | 84,213 | | | | 5.89 | % |
| | | | | | | | | | | | | | | | | | | |
| Total earning assets | | $ | 10,016,476 | | | $ | 112,589 | | | | 4.49 | % | | $ | 6,388,634 | | | $ | 93,036 | | | | 5.84 | % |
| | | | | | | | | | | | | | | | | | | | | |
| Allowance for loan losses | | | (128,560 | ) | | | | | | | | | | | (69,492 | ) | | | | | | | | |
| Cash and due from banks | | | 106,722 | | | | | | | | | | | | 59,550 | | | | | | | | | |
| Other assets | | | 383,040 | | | | | | | | | | | | 312,476 | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | |
| Total assets | | $ | 10,377,678 | | | | | | | | | | | $ | 6,691,168 | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
Liabilities and Stockholders’ Equity: | | | | | | | | | | | | | | | | | | | | | | | | |
| Interest-bearing demand deposits | | $ | 420,341 | | | $ | 467 | | | | 0.45 | % | | $ | 170,134 | | | $ | 425 | | | | 1.00 | % |
| Savings deposits | | | 17,837 | | | | 30 | | | | 0.68 | % | | | 14,778 | | | | 58 | | | | 1.57 | % |
| Money market accounts | | | 2,974,206 | | | | 6,006 | | | | 0.81 | % | | | 1,926,956 | | | | 11,237 | | | | 2.34 | % |
| Time deposits | | | 1,557,892 | | | | 8,842 | | | | 2.28 | % | | | 1,417,047 | | | | 13,726 | | | | 3.89 | % |
| Brokered deposits | | | 1,770,985 | | | | 11,480 | | | | 2.60 | % | | | 1,543,714 | | | | 16,229 | | | | 4.22 | % |
| | | | | | | | | | | | | | | | | | | |
| Total interest-bearing deposits | | | 6,741,261 | | | | 26,825 | | | | 1.60 | % | | | 5,072,629 | | | | 41,675 | | | | 3.30 | % |
| Short term borrowings | | | 920,436 | | | | 1,844 | | | | 0.79 | % | | | 265,200 | | | | 2,750 | | | | 4.10 | % |
| Long term debt | | | 645,002 | | | | 8,814 | | | | 5.41 | % | | | 349,159 | | | | 4,907 | | | | 5.56 | % |
| | | | | | | | | | | | | | | | | | | |
| Total interest-bearing liabilities | | | 8,306,699 | | | | 37,483 | | | | 1.81 | % | | | 5,686,988 | | | | 49,332 | | | | 3.47 | % |
| | | | | | | | | | | | | | | | | | | | | |
| Non-interest bearing demand deposits | | | 1,030,753 | | | | | | | | | | | | 409,254 | | | | | | | | | |
| Other liabilities | | | 67,232 | | | | | | | | | | | | 54,919 | | | | | | | | | |
| Stockholders’ equity | | | 972,994 | | | | | | | | | | | | 540,007 | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | |
| Total liabilities and stockholders’ equity | | $ | 10,377,678 | | | | | | | | | | | $ | 6,691,168 | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | |
| Net interest spread (4) | | | | | | | | | | | 2.68 | % | | | | | | | | | | | 2.37 | % |
| Effect of non interest-bearing funds | | | | | | | | | | | 0.31 | % | | | | | | | | | | | 0.38 | % |
| | | | | | | | | | | | | | | | | | | | | | | |
| Net interest income/margin (3) (5) | | | | | | $ | 75,106 | | | | 2.99 | % | | | | | | $ | 43,704 | | | | 2.75 | % |
| | | | | | | | | | | | | | | | | | | | | |
| | | |
| (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 $7.7 million for the quarter ended June 30, 2009 compared to approximately $3.1 million in the prior year quarter. |
| |
| (3) | | Reconciliation of the effect after tax equivalent adjustment to reported net interest income: |
| | | | | | | | | |
| | | Three Months Ended June 30, | |
| | | 2009 | | | 2008 | |
| Net interest income | | $ | 74,107 | | | $ | 42,712 | |
| Tax equivalent adjustment | | | 999 | | | | 992 | |
| | | | | | | |
| Net interest income, tax equivalent basis | | $ | 75,106 | | | $ | 43,704 | |
| | | | | | | |
| | | |
| (4) | | Yield on average interest-earning assets less rate on average interest-bearing liabilities.
|
| |
| (5) | | Computed as net interest income, on a tax equivalent basis, divided by average interest-earning assets. |
13
PrivateBancorp, Inc.
Founders Bank Overview
Unaudited
(dollars in thousands)
Transaction rationale
| • | | Creation of new geographic, in-market, footprint with 10 clustered branch locations. |
| |
| • | | Participation in FDIC loss share arrangement minimizes credit risk exposure |
| |
| • | | Highly motivated and experienced team in place |
| |
| • | | Provides funding diversification through a strong core deposit franchise consistent with objectives of the Strategic Growth Plan. |
Transaction overview
| • | | Assumption of $767 million in deposits and acquisition of $843 million in selected assets, including $592 million in loans on a historical basis and $181 million in investments at market. |
| |
| • | | Premium on deposits of 1.5% and discount on assets of $54 million. |
| |
| • | | FDIC will reimburse 80% of the loss up to threshold of $173 million and 95% of the loss in excess of the threshold. |
| |
| • | | Approximately 95% of investment portfolio consists of agency securities. |
| |
| • | | Ninety day option to purchase Bank premise and equipment at current appraisal value. |
| |
| • | | Intangible assets limited to deposit value and no anticipated goodwill. |
Deposits
| • | | Approximately 52,000 deposit accounts. |
| |
| • | | Average deposit cost of funds 2.26% (historical basis for the quarter ended June 30, 2009). |
| |
| • | | Top three deposit market share in five of their markets (June 2008). |
14
