For further information:
Dennis Klaeser, CFO
PrivateBancorp, Inc.
312-683-7100
For Immediate Release
PrivateBancorp Reports Earnings Per Share of $0.47
Year-to-date earnings per share increase 25 percent from the first six months of 2005
Chicago, IL, July 17, 2006--- PrivateBancorp, Inc. (NASDAQ: PVTB) today reported earnings of $0.47 per diluted share for the second quarter 2006 compared to second quarter 2005 earnings per diluted share of $0.34, an increase of 38 percent. Net income for second quarter 2006 was $10.0 million compared to second quarter 2005 net income of $7.2 million. Second quarter 2005 earnings were $0.34, which includes $0.04 per share of options expense that is recognized as a result of the modified retrospective application of SFAS 123 R, Share-Based Payment. Second quarter 2006 earnings per share include $0.02 of option expense. Net income for the six months ended June 30, 2006 was $19.0 million, or $0.88 per diluted share, compared to net income of $14.8 million, or $0.70 per diluted share for the six months ended June 30, 2005, reflecting a 25 percent increase in diluted earnings per share between periods. Reported results include the financial results of The PrivateBank - Michigan from its acquisition date of June 20, 2005.
Second quarter 2006 earnings per share include the impact of a $1.4 million gain on the sale of Federal Home Loan Bank of Chicago (“FHLB (Chicago)”) advances, $228,000 of costs associated with the withdrawal of our membership from the FHLB (Chicago) on May 2, 2006, securities losses of $1.0 million, and a gain on an interest rate swap of $413,000. The combined effect of these items increased diluted earnings per share by $0.019 for the second quarter.
“PrivateBancorp experienced another solid quarter of growth and profitability and continued to take steps to facilitate future growth. Our Oak Brook and Geneva, Illinois offices moved to larger facilities, while our planned third-quarter headquarters relocation remains on course. From a financial perspective, our team of experienced managing directors and associates continued to drive loan and deposit growth, as well as fee income growth, resulting in improved earnings performance across the markets we serve. Credit quality remains high, with non-performing loans at roughly one-tenth of one percent of total loans. In addition, we are pleased that during the quarter we were able to complete the withdrawal of our membership from the Federal Home Loan Bank of Chicago and the full redemption of our FHLB Chicago stock,” said Ralph B. Mandell, Chairman, President and CEO.
“We continue to seek additional opportunities to grow our wealth management business as well as our unique approach to private banking in select markets in middle-America and the Sun Belt, which, coupled with ongoing investments in human capital, are key factors positively impacting our future growth,” Mandell said.
Second quarter 2006 net interest income totaled $29.9 million, up 37 percent over second quarter 2005 net interest income of $21.8 million, primarily due to growth in earning assets compared to the year earlier period. Net interest margin (on a tax equivalent basis) was 3.55 percent in the second quarter 2006, up slightly from 3.53 percent in the prior year second quarter and up 10 basis points from 3.45 percent in the first quarter 2006. Yields on average earning assets increased by 39 basis points from first quarter 2006, driven by increases in the prime rate, which exceeded an increase in the cost of total average interest bearing liabilities of 33 basis points during the quarter.
As previously disclosed, the Company completed the withdrawal of its membership from the FHLB (Chicago) on May 2, 2006. As a result, the Company received $138.5 million in full payment of the redemption of the shares of FHLB (Chicago) stock it owned, and retired or sold all of its outstanding advances with and obligations to the FHLB (Chicago). As a result of the redemption of our FHLB (Chicago) stock, as of June 30, 2006, investment securities were $499.8 million, down 27 percent from $682.4 million at March 31, 2006 and down 35 percent from $769.2 million at June 30, 2005.
The provision for loan losses was $2.4 million in the second quarter 2006, compared to $1.9 million in the prior year second quarter and $2.3 million in the first quarter 2006. The increase in the provision for loan losses reflects the impact of continued loan growth. Net charge-offs totaled $389,000 in the second quarter 2006 versus $310,000 in the prior year quarter and $144,000 in the first quarter 2006. The allowance for loan losses as a percentage of total loans was 1.13 percent as of June 30, 2006 and March 31, 2006 and down from 1.15 percent at June 30, 2005. At June 30, 2006, nonperforming loans as a percentage of total loans were 0.10 percent, down from 0.15 percent at March 31, 2006 and June 30, 2005.
Non-interest income increased to $6.6 million in the second quarter 2006, up 51 percent from $4.4 million in the second quarter 2005 and up $1.6 million from the first quarter 2006. Non-interest income for the second quarter 2006 reflects $1.4 million of gains related to the sale of $90.0 million of FHLB (Chicago) advances on May 2, 2006, as a result of the withdrawal of our membership from the FHLB (Chicago). The remaining growth in non-interest income during the quarter was primarily driven by growth in wealth management fee income, which increased to $3.6 million for the second quarter 2006, up from $2.4 million in the second quarter 2005 and $3.2 million in the first quarter 2006. Wealth management assets under management increased by 35 percent to $2.7 billion at June 30, 2006, compared to $2.0 billion at June 30, 2005, and essentially unchanged from $2.7 billion as of March 31, 2006.
A $413,000 gain from an interest rate swap combined with net securities losses of $1.0 million, resulted in a $587,000 net loss, for the second quarter 2006, compared to a net gain of $73,000 in the second quarter 2005 and a net loss of $23,000 in the first quarter 2006, which negatively affected non-interest income.
Non-interest expense increased to $18.9 million in the second quarter 2006 from $13.8 million in the prior year quarter and $17.6 million in first quarter 2006. The 37 percent increase in non-interest expense as compared to the second quarter 2005 is primarily attributable to the inclusion of a full quarter’s expenses of The PrivateBank - Michigan as compared to the prior year quarter and increases in costs resulting from the Company’s increased scale and scope of operations. The 8 percent increase in non-interest expense from the first quarter 2006 is attributable primarily to increased professional fees associated with our wealth management business. During the second quarter 2006, the Company incurred approximately $228,000 in legal and other costs associated with the withdrawal of our membership from the FHLB (Chicago).
The Company continues to add experienced managing directors to support continued growth. Full-time equivalent employees at quarter’s end increased to 409 from 362 at June 30, 2005 and from 393 at March 31, 2006. At June 30, 2006, the Company had 126 managing directors compared to 84 at June 30, 2005 and 116 at March 31, 2006. The increase in the number of managing directors for the quarter was a result of 5 promotions and 5 net new hires. The efficiency ratio was 50.3 percent in the second quarter 2006 compared to 50.7 percent in the prior year quarter and 51.7 percent in the first quarter 2006.
Total assets were $3.7 billion at June 30, 2006 compared to $3.2 billion at June 30, 2005, an increase of 13 percent, and $3.7 billion at March 31, 2006. Total assets decreased slightly from the prior quarter’s end due primarily to our withdrawal from the FHLB (Chicago) and the resulting deleveraging of the balance sheet. The Company continued to see strong growth in the loan portfolio. At June 30, 2006, total loans were $3.0 billion, versus $2.2 billion at June 30, 2005 and $2.8 billion at March 31, 2006.
Total deposits were $3.1 billion at June 30, 2006, up from $2.4 billion at June 30, 2005 and up from $2.9 billion at March 31, 2006. Core deposits, defined as total deposits less brokered deposits, increased 18 percent to $2.4 billion at June 30, 2006 compared to $2.0 billion at June 30, 2005, and increased 6 percent from $2.2 billion at March 31, 2006. Brokered deposits were $748.0 million at June 30, 2006, an increase of 94 percent from $385.7 million at June 30, 2005, and up 6 percent from $704.6 million at March 31, 2006. Funds borrowed, which include Federal Home Loan Bank advances, decreased 71 percent to $133.2 million at June 30, 2006 from $464.8 million at June 30, 2005, and decreased 62 percent from $351.5 million at March 31, 2006. The decrease is primarily attributable to the sale of advances and repayment of advances to the FHLB (Chicago) in conjunction with the Company’s withdrawal of membership.
PrivateBancorp, Inc. was organized in 1989 to provide distinctive, highly personalized premium financial services primarily to privately held businesses, affluent individuals, wealthy families, professionals, entrepreneurs and real estate investors for their personal and professional interests. The Company uses a European tradition of “private banking” as a model to develop lifetime relationships with its clients. Utilizing a team of highly qualified managing directors, The PrivateBank tailors products and services to meet each client’s needs in personal and commercial banking services and wealth management services. The Company, which had assets of $3.7 billion as of June 30, 2006, has 14 offices located in the Chicago, Detroit, Milwaukee, and St. Louis metropolitan areas.
Additional information can be found in the Investor Relations section of PrivateBancorp, Inc.’s website at http://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, fluctuations in market rates of interest and loan and deposit pricing, deterioration in asset quality due to an economic downturn in the greater Chicago, Detroit, Milwaukee, and St. Louis metropolitan areas, legislative or regulatory changes, adverse developments in the Company’s loan or investment portfolios, slower than anticipated growth of the Company’s business or unanticipated business declines, unforeseen difficulties in the continued integration of The PrivateBank - Michigan or higher than expected operational costs, unexpected difficulties in the continued integration of or in operating our mortgage banking business, 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.
Consolidated Statements of Income
(dollars in thousands except per share data)
Three Months Ended | Six Months Ended | ||||||||||||
June 30, | June 30, | ||||||||||||
2006 | 2005 | 2006 | 2005 | ||||||||||
unaudited | unaudited | unaudited | unaudited | ||||||||||
Interest Income | |||||||||||||
Interest and fees on loans | $ | 55,127 | $ | 29,198 | $ | 104,037 | $ | 54,789 | |||||
Interest on investment securities | 7,734 | 9,428 | 16,036 | 18,641 | |||||||||
Interest on short-term investments | 199 | 93 | 286 | 127 | |||||||||
Total Interest Income | 63,060 | 38,719 | 120,359 | 73,557 | |||||||||
Interest Expense | |||||||||||||
Interest on deposits | 29,281 | 13,586 | 53,833 | 24,838 | |||||||||
Interest on borrowings | 2,387 | 2,750 | 5,855 | 5,224 | |||||||||
Interest on long-term debt - trust preferred securities | 1,530 | 591 | 3,034 | 1,076 | |||||||||
Total Interest Expense | 33,198 | 16,927 | 62,722 | 31,138 | |||||||||
Net Interest Income | 29,862 | 21,792 | 57,637 | 42,419 | |||||||||
Provision for loan losses | 2,382 | 1,900 | 4,635 | 2,802 | |||||||||
Net Interest Income After Provision | 27,480 | 19,892 | 53,002 | 39,617 | |||||||||
Non Interest Income | |||||||||||||
Wealth management income | 3,603 | 2,350 | 6,763 | 4,546 | |||||||||
Mortgage banking income | 1,005 | 1,076 | 1,728 | 1,818 | |||||||||
Other income | 2,616 | 885 | 3,755 | 1,751 | |||||||||
Net securities (losses) gains | (1,007 | ) | 1,045 | (1,585 | ) | 940 | |||||||
Gains (losses) on interest rate swap | 413 | (972 | ) | 968 | (493 | ) | |||||||
Total Non Interest Income | 6,630 | 4,384 | 11,629 | 8,562 | |||||||||
Non Interest Expense | |||||||||||||
Salaries and benefits | 10,325 | 8,212 | 20,861 | 15,623 | |||||||||
Occupancy expense | 2,214 | 1,804 | 4,383 | 3,542 | |||||||||
Professional fees | 1,855 | 991 | 2,766 | 2,012 | |||||||||
Wealth management fees | 899 | 234 | 1,410 | 427 | |||||||||
Marketing | 1,083 | 645 | 1,996 | 1,259 | |||||||||
Data processing | 764 | 627 | 1,530 | 1,209 | |||||||||
Amortization of intangibles | 153 | 57 | 307 | 99 | |||||||||
Insurance | 323 | 270 | 632 | 533 | |||||||||
Other operating expenses | 1,318 | 995 | 2,607 | 1,988 | |||||||||
Total Non Interest Expense | 18,934 | 13,835 | 36,492 | 26,692 | |||||||||
Minority interest expense | 86 | 73 | 163 | 149 | |||||||||
Income Before Income Taxes | 15,090 | 10,368 | 27,976 | 21,338 | |||||||||
Income tax expense | 5,077 | 3,154 | 8,976 | 6,574 | |||||||||
Net Income | $ | 10,013 | $ | 7,214 | $ | 19,000 | $ | 14,764 | |||||
Weighted Average Shares Outstanding | 20,659,566 | 20,065,931 | 20,615,276 | 19,985,936 | |||||||||
Diluted Average Shares Outstanding | 21,523,387 | 20,971,907 | 21,509,786 | 20,884,463 | |||||||||
Earnings Per Share | |||||||||||||
Basic | $ | 0.48 | $ | 0.36 | $ | 0.92 | $ | 0.74 | |||||
Diluted | $ | 0.47 | $ | 0.34 | $ | 0.88 | $ | 0.70 |
Note 1: Certain reclassifications have been made to prior period statements to place them on a basis comparable with the current period financial statements.
Note 2: All previously reported data has been restated to reflect the adoption of SFAS No. 123(R), “Share Based Payment”
Consolidated Balance Sheets
(dollars in thousands except per share data)
06/30/06 | 12/31/05 | 06/30/05 | ||||||||
unaudited | unaudited | |||||||||
Assets | ||||||||||
Cash and due from banks | $ | 46,625 | $ | 47,736 | $ | 33,359 | ||||
Short-term investments | 1,496 | 14,133 | 74,873 | |||||||
Investment securities: available-for-sale | 499,801 | 695,151 | 769,218 | |||||||
Loans held for sale | 6,443 | 5,269 | 12,532 | |||||||
Loans | 2,956,026 | 2,608,067 | 2,192,542 | |||||||
Allowance for loan losses | (33,490 | ) | (29,388 | ) | (25,152 | ) | ||||
Net loans | 2,922,536 | 2,578,679 | 2,167,390 | |||||||
Premises and equipment, net | 17,902 | 11,754 | 8,580 | |||||||
Goodwill | 63,176 | 63,176 | 62,981 | |||||||
Other assets | 92,876 | 80,699 | 75,781 | |||||||
Total Assets | $ | 3,650,855 | $ | 3,496,597 | $ | 3,204,714 | ||||
Liabilities | ||||||||||
Non-interest bearing deposits | $ | 273,003 | $ | 252,625 | $ | 245,019 | ||||
Interest bearing deposits | 2,852,771 | 2,570,757 | 2,162,322 | |||||||
Total deposits | 3,125,774 | 2,823,382 | 2,407,341 | |||||||
Funds borrowed | 133,163 | 296,980 | 464,799 | |||||||
Long-term debt - trust preferred securities | 98,000 | 98,000 | 78,000 | |||||||
Other liabilities | 40,860 | 40,317 | 32,026 | |||||||
Total Liabilities | 3,397,797 | 3,258,679 | 2,982,166 | |||||||
Stockholders' Equity | ||||||||||
Common stock and additional paid-in-capital | 145,221 | 140,557 | 137,618 | |||||||
Treasury stock | (3,812 | ) | (2,728 | ) | (2,635 | ) | ||||
Retained earnings | 109,130 | 92,655 | 78,386 | |||||||
Accumulated other comprehensive income | 2,519 | 7,434 | 9,179 | |||||||
Total Stockholders' Equity | 253,058 | 237,918 | 222,548 | |||||||
Total Liabilities and | ||||||||||
Stockholders' Equity | $ | 3,650,855 | $ | 3,496,597 | $ | 3,204,714 | ||||
Book Value Per Share | $ | 11.94 | $ | 11.61 | $ | 10.89 |
Note 1: Certain reclassifications have been made to prior period statements to place them on a basis comparable with the current period financial statements.
Note 2: All previously reported data has been restated to reflect the adoption of SFAS No. 123(R), “Share Based Payment”
Key Financial Data
Unaudited
(dollars in thousands except per share data)
2Q06 | 1Q06 | 4Q05 | 3Q05 | 2Q05 | ||||||||||||
Key Statistics | ||||||||||||||||
Net income | $ | 10,013 | $ | 8,987 | $ | 8,242 | $ | 7,906 | $ | 7,215 | ||||||
Basic earnings per share | $ | 0.48 | $ | 0.44 | $ | 0.40 | $ | 0.39 | $ | 0.36 | ||||||
Diluted earnings per share | $ | 0.47 | $ | 0.42 | $ | 0.39 | $ | 0.37 | $ | 0.34 | ||||||
Return on average total assets | 1.10 | % | 1.03 | % | 0.97 | % | 0.97 | % | 1.07 | % | ||||||
Return on average total equity | 16.49 | % | 15.26 | % | 14.49 | % | 14.06 | % | 13.95 | % | ||||||
Dividend payout ratio | 12.65 | % | 14.06 | % | 11.41 | % | 11.91 | % | 12.84 | % | ||||||
Fee revenue as a percent of total revenue (1) | 19.48 | % | 15.32 | % | 15.07 | % | 16.20 | % | 16.51 | % | ||||||
Wealth management assets under management | 2,686,255 | 2,716,599 | 2,436,766 | 2,061,510 | 1,984,371 | |||||||||||
Non-interest income to average assets | 0.73 | % | 0.57 | % | 0.58 | % | 0.67 | % | 0.65 | % | ||||||
Non-interest expense to average assets | 2.09 | % | 2.01 | % | 2.20 | % | 2.10 | % | 2.06 | % | ||||||
Net overhead ratio (2) | 1.36 | % | 1.44 | % | 1.62 | % | 1.43 | % | 1.40 | % | ||||||
Efficiency ratio (3) | 50.3 | % | 51.7 | % | 55.7 | % | 52.2 | % | 50.7 | % | ||||||
Net interest margin | ||||||||||||||||
Fed funds sold & other short-term investments | 5.02 | % | 4.81 | % | 4.61 | % | 3.59 | % | 2.89 | % | ||||||
Investment Securities (taxable) | 5.75 | % | 4.88 | % | 5.02 | % | 4.96 | % | 5.05 | % | ||||||
Investment Securities (non-taxable) | 6.90 | % | 6.91 | % | 6.91 | % | 6.96 | % | 6.96 | % | ||||||
Loans, net of unearned discount | 7.64 | % | 7.39 | % | 7.14 | % | 6.76 | % | 6.43 | % | ||||||
Yield on average earning assets | 7.39 | % | 7.00 | % | 6.79 | % | 6.44 | % | 6.16 | % | ||||||
Interest bearing deposits | 4.21 | % | 3.84 | % | 3.45 | % | 3.04 | % | 2.88 | % | ||||||
Funds borrowed | 4.58 | % | 4.24 | % | 4.04 | % | 3.66 | % | 3.12 | % | ||||||
Trust preferred securities | 6.17 | % | 6.14 | % | 7.00 | % | 7.06 | % | 8.69 | % | ||||||
Cost of average interest-bearing liabilities | 4.29 | % | 3.96 | % | 3.64 | % | 3.26 | % | 2.99 | % | ||||||
Net interest spread (4) | 3.10 | % | 3.04 | % | 3.15 | % | 3.18 | % | 3.17 | % | ||||||
Net interest margin (5) | 3.55 | % | 3.45 | % | 3.55 | % | 3.53 | % | 3.53 | % | ||||||
Tax equivalent adjustment to net interest income (6) | $ | 1,173 | $ | 1,174 | $ | 1,143 | $ | 1,132 | $ | 1,125 |
(1) | Represents wealth management, mortgage banking and other income as a percentage of the sum of net interest income and wealth management, mortgage banking and other income. |
(2) | Non-interest expense less non-interest income divided by average total assets. |
(3) | Non-interest expense divided by the sum of net interest income, on a tax equivalent basis, plus non-interest income. |
(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. |
(6) | The company adjusts GAAP reported net interest income by the tax equivalent adjustment amount to account for the tax attributes on federally tax exempt municipal securities. For GAAP purposes, tax benefits associated with federally tax exempt municipal securities are recorded as a benefit in income tax expense. The following table reconciles reported net interest income to net interest income on a tax equivalent basis for the periods presented: |
Reconciliation of net interest income to net interest income on a tax equivalent basis | ||||||||||||||||
2Q06 | 1Q06 | 4Q05 | 3Q05 | 2Q05 | ||||||||||||
Net interest income | $ | 29,862 | $ | 27,775 | $ | 27,717 | $ | 26,264 | $ | 21,792 | ||||||
Tax equivalent adjustment to net interest income | 1,173 | 1,174 | 1,143 | 1,132 | 1,125 | |||||||||||
Net interest income, tax equivalent basis | $ | 31,035 | $ | 28,949 | $ | 28,860 | $ | 27,396 | $ | 22,917 |
Note: All previously reported data has been restated to reflect the adoption of SFAS No. 123(R), “Share Based Payment”
Key Financial Data
Unaudited
(dollars in thousands except per share data)
2Q06 | 1Q06 | 4Q05 | 3Q05 | 2Q05 | ||||||||||||
Balance Sheet Ratios | ||||||||||||||||
Loans to Deposits (period end) | 94.57 | % | 94.78 | % | 92.37 | % | 94.15 | % | 91.08 | % | ||||||
Average interest-earning assets to average interest-bearing liabilities | 111.9 | 111.2 | 112.0 | 111.7 | 113.6 | |||||||||||
Per Share Data | ||||||||||||||||
Dividends | $ | 0.060 | $ | 0.060 | $ | 0.045 | $ | 0.045 | $ | 0.045 | ||||||
Book value (period end) | $ | 11.94 | $ | 11.82 | $ | 11.61 | $ | 11.23 | $ | 10.89 | ||||||
Tangible book value (period end) (1) | $ | 8.71 | $ | 8.52 | $ | 8.43 | $ | 7.87 | $ | 7.52 | ||||||
Share Price Data (period end) | ||||||||||||||||
Closing Price | $ | 41.41 | $ | 41.49 | $ | 35.57 | $ | 34.28 | $ | 35.38 | ||||||
Diluted earnings multiple (2) | 21.97 | x | 24.36 | x | 22.99 | x | 23.35 | x | 25.94 | x | ||||||
Book value multiple | 3.47 | x | 3.51 | x | 3.06 | x | 3.05 | x | 3.25 | x | ||||||
Common Stock Information | ||||||||||||||||
Outstanding shares at end of period | 21,198,759 | 20,729,339 | 20,491,934 | 20,490,119 | 20,435,869 | |||||||||||
Number of shares used to compute: | ||||||||||||||||
Basic earnings per share | 20,659,566 | 20,561,694 | 20,427,363 | 20,408,238 | 20,065,931 | |||||||||||
Diluted earnings per share | 21,523,387 | 21,424,810 | 21,410,469 | 21,373,287 | 20,971,907 | |||||||||||
Capital Ratios (period end) (3): | ||||||||||||||||
Total equity to total assets | 6.93 | % | 6.68 | % | 6.80 | % | 6.91 | % | 6.94 | % | ||||||
Total risk-based capital ratio | 10.63 | % | 10.48 | % | 10.54 | % | 10.13 | % | 10.60 | % | ||||||
Tier-1 risk-based capital ratio | 8.62 | % | 8.54 | % | 8.50 | % | 8.67 | % | 9.18 | % | ||||||
Leverage ratio | 7.41 | % | 7.25 | % | 7.09 | % | 7.07 | % | 7.94 | % |
(1) Tangible book value is total capital less goodwill and other intangibles divided by outstanding shares at end of period.
(2) Period end closing stock price divided by annualized quarterly earnings for the quarter then ended.
(3) Capital ratios for the most recent period presented in the press release are based on preliminary data.
Note: All previously reported data has been restated to reflect the adoption of SFAS No. 123(R), “Share Based Payment”
Key Financial Data
Unaudited
(dollars in thousands)
2Q06 | 1Q06 | 4Q05 | 3Q05 | 2Q05 | ||||||||||||
Summary Income Statement | ||||||||||||||||
Interest Income | ||||||||||||||||
Interest and fees on loans | $ | 55,127 | $ | 48,910 | $ | 45,244 | $ | 39,580 | $ | 29,198 | ||||||
Interest on investment securities | 7,734 | 8,302 | 8,585 | 9,093 | 9,428 | |||||||||||
Interest on short-term investments | 199 | 87 | 207 | 166 | 93 | |||||||||||
Total Interest Income | 63,060 | 57,299 | 54,036 | 48,839 | 38,719 | |||||||||||
Interest Expense | 33,198 | 29,524 | 26,319 | 22,575 | 16,927 | |||||||||||
Net Interest Income | 29,862 | 27,775 | 27,717 | 26,264 | 21,792 | |||||||||||
Provision for loan losses | 2,382 | 2,253 | 1,690 | 2,046 | 1,900 | |||||||||||
Net Interest Income after Provision for Loan Losses | 27,480 | 25,522 | 26,027 | 24,218 | 19,892 | |||||||||||
Non Interest Income | ||||||||||||||||
Wealth management income | 3,603 | 3,160 | 2,771 | 2,627 | 2,350 | |||||||||||
Mortgage banking income | 1,005 | 724 | 784 | 1,284 | 1,076 | |||||||||||
Other income | 2,616 | 1,138 | 1,361 | 1,165 | 885 | |||||||||||
Net securities (losses) gains | (1,007 | ) | (578 | ) | (192 | ) | (249 | ) | 1,045 | |||||||
Gains (losses) on interest rate swap | 413 | 555 | 252 | 644 | (972 | ) | ||||||||||
Total Non Interest Income | 6,630 | 4,999 | 4,976 | 5,471 | 4,384 | |||||||||||
Non Interest Expense | ||||||||||||||||
Salaries and benefits | 10,325 | 10,536 | 10,677 | 10,011 | 8,212 | |||||||||||
Occupancy expense | 2,214 | 2,169 | 2,012 | 1,963 | 1,804 | |||||||||||
Professional fees | 1,855 | 1,016 | 1,284 | 1,272 | 991 | |||||||||||
Wealth management fees | 899 | 406 | 326 | 308 | 234 | |||||||||||
Marketing | 1,083 | 913 | 1,140 | 1,150 | 645 | |||||||||||
Data processing | 764 | 766 | 820 | 803 | 627 | |||||||||||
Insurance | 323 | 310 | 287 | 275 | 270 | |||||||||||
Amortization of intangibles | 153 | 154 | 156 | 156 | 57 | |||||||||||
Other operating expenses | 1,318 | 1,288 | 2,132 | 1,221 | 995 | |||||||||||
Total Non Interest Expense | 18,934 | 17,558 | 18,834 | 17,159 | 13,835 | |||||||||||
Minority interest expense | 86 | 77 | 76 | 82 | 73 | |||||||||||
Income Before Income Taxes | 15,090 | 12,886 | 12,093 | 12,448 | 10,368 | |||||||||||
Income tax expense | 5,077 | 3,899 | 3,851 | 4,542 | 3,154 | |||||||||||
Net income | $ | 10,013 | $ | 8,987 | $ | 8,242 | $ | 7,906 | $ | 7,214 |
Note 1: Certain reclassifications have been made to prior period statements to place them on a basis comparable with the current period financial statements.
Note 2: All previously reported data has been restated to reflect the adoption of SFAS No. 123(R), “Share Based Payment”
Key Financial Data
Unaudited
(dollars in thousands)
2Q06 | 1Q06 | 4Q05 | 3Q05 | 2Q05 | ||||||||||||
Credit Quality | ||||||||||||||||
Key Ratios | ||||||||||||||||
Net charge-offs (recoveries) to average loans | 0.05 | % | 0.02 | % | 0.03 | % | -0.12 | % | 0.07 | % | ||||||
Total non-performing loans to total loans | 0.10 | % | 0.15 | % | 0.04 | % | 0.05 | % | 0.15 | % | ||||||
Total non-performing assets to total assets | 0.09 | % | 0.12 | % | 0.04 | % | 0.04 | % | 0.11 | % | ||||||
Nonaccrual loans to: | ||||||||||||||||
total loans | 0.06 | % | 0.12 | % | 0.03 | % | 0.02 | % | 0.06 | % | ||||||
total assets | 0.05 | % | 0.09 | % | 0.02 | % | 0.01 | % | 0.04 | % | ||||||
Allowance for loan losses to: | ||||||||||||||||
total loans | 1.13 | % | 1.13 | % | 1.13 | % | 1.15 | % | 1.15 | % | ||||||
non-performing loans | 1051 | % | 693 | % | 2201 | % | 1954 | % | 689 | % | ||||||
nonaccrual loans | 1946 | % | 976 | % | 4434 | % | 5908 | % | 2076 | % | ||||||
Non-performing assets: | ||||||||||||||||
Loans delinquent over 90 days | $ | 1,262 | $ | 1,080 | $ | 280 | $ | 744 | $ | 2,026 | ||||||
Nonaccrual loans | 1,721 | 3,228 | 663 | 472 | 1,212 | |||||||||||
OREO | 203 | 235 | 393 | 211 | 413 | |||||||||||
Total non-performing assets | $ | 3,187 | $ | 4,543 | $ | 1,336 | $ | 1,427 | $ | 3,651 | ||||||
Net loan charge-offs (recoveries): | ||||||||||||||||
Loans charged off | $ | 466 | $ | 165 | $ | 188 | $ | 19 | $ | 328 | ||||||
(Recoveries) | (77 | ) | (21 | ) | (2 | ) | (705 | ) | (18 | ) | ||||||
Net charge-offs (recoveries) | $ | 389 | $ | 144 | $ | 186 | ($686 | ) | $ | 310 | ||||||
Provision for loan losses | $ | 2,382 | $ | 2,253 | $ | 1,690 | $ | 2,046 | $ | 1,900 | ||||||
Allowance for Loan Losses Summary | ||||||||||||||||
Balance at beginning of period (1) | $ | 31,497 | $ | 29,388 | $ | 27,884 | $ | 25,152 | $ | 23,562 | ||||||
Provision | 2,382 | 2,253 | 1,690 | 2,046 | 1,900 | |||||||||||
Net charge-offs (recoveries) | 389 | 144 | 186 | (686 | ) | 310 | ||||||||||
Balance at end of period | $ | 33,490 | $ | 31,497 | $ | 29,388 | $ | 27,884 | $ | 25,152 | ||||||
Net loan charge-offs (recoveries): | ||||||||||||||||
Commercial real estate | $ | 250 | - | - | - | - | ||||||||||
Residential real estate | - | - | - | - | - | |||||||||||
Commercial | $ | 180 | $ | 121 | - | ($115 | ) | $ | 270 | |||||||
Personal | ($41 | ) | $ | 23 | $ | 186 | ($571 | ) | $ | 40 | ||||||
Home equity | - | - | - | - | - | |||||||||||
Construction | - | - | - | - | - | |||||||||||
Total net loan charge-offs (recoveries) | $ | 389 | $ | 144 | $ | 186 | ($686 | ) | $ | 310 |
(1) The 2Q05 beginning balance includes The PrivateBank - Michigan allowance at acquisition date June 20, 2005.
Balance Sheets
(dollars in thousands)
unaudited | unaudited | audited | unaudited | unaudited | ||||||||||||
06/30/06 | 03/31/06 | 12/31/05 | 09/30/05 | 06/30/05 | ||||||||||||
Assets | ||||||||||||||||
Cash and due from banks | $ | 46,625 | $ | 42,827 | $ | 47,736 | $ | 43,246 | $ | 33,359 | ||||||
Short-term investments | 1,496 | 9,613 | 14,133 | 11,179 | 74,873 | |||||||||||
Investment securities: available-for-sale | 499,801 | 682,355 | 695,151 | 720,055 | 769,218 | |||||||||||
Loans held for sale | 6,443 | 9,747 | 5,269 | 9,104 | 12,532 | |||||||||||
Loans | 2,956,026 | 2,786,075 | 2,608,067 | 2,421,725 | 2,192,542 | |||||||||||
Less: Allowance for loan losses | (33,490 | ) | (31,497 | ) | (29,388 | ) | (27,884 | ) | (25,152 | ) | ||||||
Net loans | 2,922,536 | 2,754,578 | 2,578,679 | 2,393,841 | 2,167,390 | |||||||||||
Premises and equipment, net | 17,902 | 15,146 | 11,754 | 9,798 | 8,580 | |||||||||||
Goodwill | 63,176 | 63,176 | 63,176 | 63,160 | 62,981 | |||||||||||
Other assets | 92,876 | 93,064 | 80,698 | 77,601 | 75,781 | |||||||||||
Total Assets | $ | 3,650,855 | $ | 3,670,506 | $ | 3,496,596 | $ | 3,327,984 | $ | 3,204,714 | ||||||
Liabilities and Stockholders' Equity | ||||||||||||||||
Non-interest bearing deposits | $ | 273,003 | $ | 240,961 | $ | 252,625 | $ | 261,808 | $ | 245,019 | ||||||
Interest bearing demand deposits | 127,445 | 142,734 | 132,787 | 121,696 | 118,089 | |||||||||||
Savings and money market deposits | 1,277,067 | 1,243,501 | 1,272,353 | 1,108,299 | 1,153,918 | |||||||||||
Time deposits | 1,448,259 | 1,312,306 | 1,165,617 | 1,080,431 | 890,315 | |||||||||||
Total deposits | 3,125,774 | 2,939,502 | 2,823,382 | 2,572,234 | 2,407,341 | |||||||||||
Funds borrowed | 133,163 | 351,523 | 296,980 | 417,664 | 464,799 | |||||||||||
Long-term debt - Trust Preferred Securities | 98,000 | 98,000 | 98,000 | 78,000 | 78,000 | |||||||||||
Other liabilities | 40,860 | 36,361 | 40,317 | 29,995 | 32,026 | |||||||||||
Total liabilities | 3,397,797 | 3,425,386 | 3,258,679 | 3,097,893 | 2,982,166 | |||||||||||
Stockholders' equity | 253,058 | 245,120 | 237,918 | 230,091 | 222,548 | |||||||||||
Total Liabilities and Stockholders' Equity | $ | 3,650,855 | $ | 3,670,506 | $ | 3,496,597 | $ | 3,327,984 | $ | 3,204,714 |
Average Quarterly Balance Sheets
(unaudited, dollars in thousands)
06/30/06 | 03/31/06 | 12/31/05 | 09/30/05 | 06/30/05 | ||||||||||||
Assets | ||||||||||||||||
Cash and due from banks | $ | 37,582 | $ | 35,208 | $ | 36,703 | $ | 34,513 | $ | 28,483 | ||||||
Short-term investments | 15,646 | 7,317 | 17,522 | 18,234 | 12,643 | |||||||||||
Investment securities: available-for-sale | 579,223 | 696,323 | 702,351 | 749,461 | 768,523 | |||||||||||
Loans held for sale | 7,375 | 7,655 | 7,541 | 9,644 | 8,517 | |||||||||||
Loans | 2,869,754 | 2,660,074 | 2,499,060 | 2,305,517 | 1,803,580 | |||||||||||
Less: Allowance for loan losses | (32,517 | ) | (30,018 | ) | (28,475 | ) | (26,271 | ) | (20,665 | ) | ||||||
Net loans | 2,837,237 | 2,630,056 | 2,470,585 | 2,279,246 | 1,782,915 | |||||||||||
Premises and equipment, net | 17,148 | 14,417 | 10,649 | 9,248 | 7,241 | |||||||||||
Goodwill | 63,176 | 63,176 | 63,161 | 62,983 | 25,486 | |||||||||||
Other assets | 84,870 | 87,413 | 81,719 | 76,756 | 64,464 | |||||||||||
Total Assets | $ | 3,642,257 | $ | 3,541,565 | $ | 3,390,231 | $ | 3,240,085 | $ | 2,698,272 | ||||||
Liabilities and Stockholders' Equity | ||||||||||||||||
Non-interest bearing deposits | $ | 264,798 | $ | 240,119 | $ | 256,782 | $ | 238,632 | $ | 190,477 | ||||||
Interest bearing demand deposits | 128,854 | 123,524 | 127,769 | 119,060 | 110,956 | |||||||||||
Savings and money market deposits | 1,273,639 | 1,240,914 | 1,191,130 | 1,120,336 | 1,038,059 | |||||||||||
Time deposits | 1,389,356 | 1,230,534 | 1,096,528 | 957,640 | 743,221 | |||||||||||
Total deposits | 3,056,647 | 2,835,091 | 2,672,209 | 2,435,668 | 2,082,713 | |||||||||||
Funds borrowed | 206,098 | 326,862 | 363,540 | 468,681 | 348,216 | |||||||||||
Long-term debt - Trust Preferred Securities | 98,000 | 98,000 | 89,304 | 78,000 | 27,229 | |||||||||||
Other liabilities | 38,033 | 42,728 | 39,314 | 34,645 | 32,583 | |||||||||||
Total liabilities | 3,398,778 | 3,302,681 | 3,164,367 | 3,016,994 | 2,490,741 | |||||||||||
Stockholders' equity | 243,479 | 238,884 | 225,864 | 223,091 | 207,531 | |||||||||||
Total Liabilities and Stockholders' Equity | $ | 3,642,257 | $ | 3,541,565 | $ | 3,390,231 | $ | 3,240,085 | $ | 2,698,272 |
Average Year-To-Date Balance Sheets
(unaudited, dollars in thousands)
06/30/06 | 03/31/06 | 12/31/05 | 09/30/05 | 06/30/05 | ||||||||||||
Assets | ||||||||||||||||
Cash and due from banks | $ | 36,348 | $ | 35,208 | $ | 33,043 | $ | 31,856 | $ | 30,370 | ||||||
Short-term investments | 11,505 | 7,317 | 14,730 | 10,824 | 8,540 | |||||||||||
Investment securities: available-for-sale | 637,450 | 696,323 | 743,162 | 756,915 | 760,700 | |||||||||||
Loans held for sale | 7,520 | 7,655 | 7,875 | 8,431 | 8,710 | |||||||||||
Loans | 2,765,489 | 2,660,074 | 2,077,000 | 1,934,324 | 1,744,754 | |||||||||||
Less: Allowance for loan losses | (31,274 | ) | (30,018 | ) | (23,725 | ) | (22,124 | ) | (20,016 | ) | ||||||
Net loans | 2,734,215 | 2,630,056 | 2,053,275 | 1,912,200 | 1,724,738 | |||||||||||
Premises and equipment, net | 15,790 | 14,417 | 8,538 | 7,827 | 7,104 | |||||||||||
Goodwill | 63,176 | 63,176 | 43,262 | 36,557 | 23,116 | |||||||||||
Other assets | 80,324 | 87,413 | 70,905 | 66,261 | 61,001 | |||||||||||
Total Assets | $ | 3,586,328 | $ | 3,541,565 | $ | 2,974,790 | $ | 2,830,871 | $ | 2,624,279 | ||||||
Liabilities and Stockholders' Equity | ||||||||||||||||
Non-interest bearing deposits | $ | 252,529 | $ | 240,119 | $ | 214,826 | $ | 200,704 | $ | 181,274 | ||||||
Interest bearing demand deposits | 126,204 | 123,524 | 114,743 | 110,353 | 105,927 | |||||||||||
Savings and money market deposits | 1,257,367 | 1,240,914 | 1,067,763 | 1,026,205 | 978,402 | |||||||||||
Time deposits | 1,310,384 | 1,230,534 | 887,716 | 817,344 | 746,049 | |||||||||||
Total deposits | 2,946,484 | 2,835,091 | 2,285,048 | 2,154,606 | 2,011,652 | |||||||||||
Funds borrowed | 266,123 | 326,862 | 386,184 | 390,919 | 352,931 | |||||||||||
Long-term debt - Trust Preferred Securities | 98,000 | 98,000 | 53,633 | 41,743 | 23,615 | |||||||||||
Other liabilities | 35,699 | 42,728 | 34,833 | 32,347 | 30,963 | |||||||||||
Total liabilities | 3,346,306 | 3,302,681 | 2,759,698 | 2,619,615 | 2,419,161 | |||||||||||
Stockholders' equity | 240,022 | 238,884 | 215,092 | 211,256 | 205,118 | |||||||||||
Total Liabilities and Stockholders' Equity | $ | 3,586,328 | $ | 3,541,565 | $ | 2,974,790 | $ | 2,830,871 | $ | 2,624,279 |