For further information:
Dennis Klaeser, CFO
PrivateBancorp, Inc.
312-683-7100
For Immediate Release
PrivateBancorp Reports Earnings Per Share of $0.42 for Fourth Quarter 2006
and $1.76 for the twelve months ended December 31, 2006
Earnings per share are up 21 percent year over year
Chicago, IL, January 16, 2007--- PrivateBancorp, Inc. (NASDAQ: PVTB) today reported earnings of $0.42 per diluted share for the fourth quarter 2006 compared to fourth quarter 2005 earnings per diluted share of $0.39, an increase of 8 percent. Net income for the fourth quarter 2006 was $9.1 million compared to fourth quarter 2005 net income of $8.2 million. For the twelve months ended December 31, 2006, net income was $37.9 million, or $1.76 per diluted share, compared to net income of $30.9 million, or $1.46 per diluted share, for the twelve months ended December 31, 2005, a 21 percent increase in diluted earnings per share between periods. The PrivateBank - Atlanta’s results of operations are included since the date of acquisition, December 13, 2006.
Fourth quarter 2006 earnings also include the impact of $853,000 in expenses related to the previously reported fraud loss discovered during the quarter, net of tax, which reduced earnings per share by $0.04.
“We were able to achieve 21 percent growth in net income year over year because organic core deposit and loan growth across our network of offices exceeded 25 percent while our credit quality remained excellent,” said Ralph B. Mandell, Chairman, President and CEO. “We accomplished this despite experiencing meaningful margin compression that began in the third quarter and continued through the remainder of the year, during which time, as expected, we also saw an increase in our occupancy and personnel expense as a result of our efforts to support our continued long-term growth. Looking forward, we will continue to concentrate on growing our franchise as we have in the past but with an intense focus on controlling expenses in order to mitigate the effects of the current yield curve environment.”
“During the quarter, we entered new markets in Atlanta, through acquisition, and Kansas City, through a de novo strategy, employing our proven formula of utilizing highly qualified, locally-based professionals who bring private banking and wealth management expertise, civic involvement and strong personal relationships to lead our efforts,” Mandell said.
The acquisition of Piedmont Bancshares closed on December 13, 2006, with total consideration paid of $47.0 million, consisting of the payment of approximately $22.3 million in cash and the issuance of approximately 611,000 shares of PrivateBancorp, Inc. common stock. The acquisition of Piedmont Bancshares had a neutral effect on earnings per share for the quarter. Earlier in the fourth quarter, a loan production office was opened in Kansas City, as a first step toward establishing a de novo bank in that market. The Kansas City initiative resulted in $144,000 of incremental operating expense during the fourth quarter.
For the fourth quarter 2006, net interest income totaled $29.8 million compared to fourth quarter 2005 net interest income of $27.7 million, primarily due to the growth in volume of earning assets more than offsetting a decrease in net interest margin. Net interest margin (on a tax equivalent basis) was 3.25 percent in the fourth quarter 2006, down from 3.55 percent in the prior year fourth quarter and 3.47 percent in the third quarter 2006. During the fourth quarter 2006, the yield on average interest earning assets decreased by 10 basis points from the third quarter 2006 while total cost of funds increased by 11 basis points.
Key factors in determining the level of provisions is our historical and anticipated charge-off rates and an analysis of credit ratings on the loans in our portfolio. The decrease in the provision from $1.7 million in the prior year fourth quarter and $1.5 million in the third quarter 2006 to $707,000 in the fourth quarter 2006 reflects the continuing trend of very low charge-offs and a stable to decreasing trend in the dollar amount of loans that have higher than normal credit risk. Net charge-offs to average total loans was 0.01 percent for the fourth quarter 2006 compared to 0.04 percent for the third quarter 2006 and 0.03 percent for the fourth quarter 2005. At December 31, 2006, nonperforming loans as a percentage of total loans continued to be at a very low level at 0.25 percent, compared to 0.04 percent at December 31, 2005, and 0.06 percent at September 30, 2006, factors also considered in establishing our allowance for loan losses. The allowance for loan losses as a percentage of total loans was 1.09 percent as of December 31, 2006, down from 1.11 percent at September 30, 2006 and from 1.13 percent at December 31, 2005.
Fourth quarter 2006 non interest income was $5.6 million, a 12 percent increase over fourth quarter 2005 non interest income of $5.0 million driven primarily by a 30 percent increase in wealth management fee income. Non interest income decreased 6 percent from third quarter 2006 non interest income of $5.9 million, due primarily to the inclusion of $308,000 of net securities gains in the third quarter 2006, compared to $1,000 of securities losses in the fourth quarter 2006. Wealth management fee income increased to $3.6 million for the fourth quarter 2006, up from $2.8 million in the fourth quarter 2005 and $3.5 million in the third quarter 2006. Wealth management assets under management increased 19 percent to $2.9 billion at December 31, 2006 compared to $2.4 billion at December 31, 2005 and $2.8 billion at September 30, 2006. Mortgage banking income increased slightly to $807,000 for the fourth quarter 2006 compared to $784,000 for the fourth quarter 2005, and $804,000 during the third quarter 2006.
Non interest expense increased to $22.6 million in the fourth quarter 2006 from $18.8 million in the prior year quarter and $20.0 million in the third quarter 2006, reflecting $853,000 in expenses attributable to the fraud loss discovered during the quarter as well as increases in personnel, occupancy expense, professional fees, and wealth management fees. The efficiency ratio was 61.9 percent in the fourth quarter 2006 compared to 55.7 percent in the prior year quarter and 53.9 percent in the third quarter 2006.
The Company continues to add experienced managing directors to support continued growth. Full-time equivalent employees at December 31, 2006 increased to 471 from 386 at December 31, 2005 and from 421 at September 30, 2006. At December 31, 2006, the Company had 148 managing directors compared to 114 at December 31, 2005 and 129 managing directors at September 30, 2006. The Kansas City and Atlanta offices added 15 managing directors to the Company during the quarter.
Total assets were $4.3 billion at December 31, 2006, an increase of 22 percent from $3.5 billion at December 31, 2005, and an increase of 10 percent from $3.9 billion at September 30, 2006. At December 31, 2006, total loans were $3.5 billion, an increase of 34 percent from $2.6 billion at December 31, 2005 and up 12 percent from $3.1 billion at September 30, 2006. The Company has benefited from strong organic loan growth during 2006. Excluding loans of The PrivateBank - Atlanta at acquisition date, loans grew by 26 percent year over year and 5 percent from the third quarter 2006. The PrivateBank- Atlanta contributed $200.5 million in loans to the consolidated total at December 31, 2006.
Investment securities were $496.8 million at December 31, 2006, up from $458.9 million at September 30, 2006 and down from $695.2 million at December 31, 2005. The decrease in the investment portfolio from the prior year-end was due primarily to the redemption of Federal Home Loan Bank of Chicago (“FHLB (Chicago)”) stock held by the Company in conjunction with its May 2006 withdrawal of membership from the FHLB (Chicago).
Total deposits were $3.6 billion at December 31, 2006, up 26 percent from $2.8 billion at December 31, 2005 and up 10 percent from $3.2 billion at September 30, 2006. Core deposits, defined as total deposits less brokered deposits, increased 32 percent to $3.0 billion compared to $2.2 billion at December 31, 2005, and were up 18 percent, from $2.5 billion at September 30, 2006. Excluding deposits of The PrivateBank- Atlanta at acquisition date, core deposits grew by 25 percent year over year and 11 percent during the quarter. The PrivateBank - Atlanta had $177.7 million in core deposits at December 31, 2006. Brokered deposits were $589.3 million at December 31, 2006, up $2.7 million from $586.6 million at December 31, 2005 and down $131.4 million, or 18 percent, from $720.7 million at September 30, 2006. Brokered deposits were 17 percent of total deposits at December 31, 2006 compared to 21 percent at December 31, 2005 and 22 percent at September 30, 2006. Funds borrowed, which include federal funds purchased, FHLB advances and borrowings under our credit facility, decreased $7.2 million, or 2 percent, to $289.7 million at December 31, 2006 from $297.0 million at December 31, 2005, and increased 23 percent from $235.9 million at September 30, 2006.
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. Through a team of highly qualified managing directors, The PrivateBank tailors products and services to meet each client’s personal and commercial banking and wealth management needs. The Company, which had assets of $4.3 billion as of December 31, 2006, has 17 offices located in the Atlanta, Chicago, Detroit, Milwaukee, St. Louis, and Kansas City, metropolitan areas.
Additional information can be found in the Investor Relations section of PrivateBancorp, Inc.’s website at www.pvtb.com.
Forward-Looking Statements: Statements contained in this news release that are not historical facts may constitute forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended. The Company’s ability to predict results or the actual effect of future plans or strategies is inherently uncertain. Factors which could have a material adverse effect on the operations and future prospects of the Company include, but are not limited to, fluctuations in market rates of interest and loan and deposit pricing in the Company’s market areas, the effect of continued margin pressure on our earnings, deterioration in asset quality due to an economic downturn in the greater Chicago, Detroit, Milwaukee, St. Louis, Kansas City or Atlanta metropolitan areas, developments pertaining to the previously-announced employee fraud, the dollar amount of recovery, if any, on any insurance bond claim relating to the employee fraud, 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 integration of The PrivateBank - Atlanta or higher than expected operational costs, failure to get regulatory approval for a de novo federal savings bank in Kansas City, competition, 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.
Consolidated Balance Sheets
(dollars in thousands except per share data)
| | | 12/31/06 | | 12/31/05 | |
| | | unaudited | | | |
Assets | | | | | |
| Cash and due from banks | | $ | 48,549 | | $ | 47,736 | |
| Short-term investments | | | 41,145 | | | 14,133 | |
| Investment securities: available-for-sale | | | 496,782 | | | 695,151 | |
| Loans held for sale | | | 14,515 | | | 5,269 | |
| | | | | | | | |
| Loans | | | 3,499,989 | | | 2,608,067 | |
| Allowance for loan losses | | | (38,069 | ) | | (29,388 | ) |
| Net loans | | | 3,461,920 | | | 2,578,679 | |
| | | | | | | | |
| Premises and equipment, net | | | 21,413 | | | 11,754 | |
| Goodwill | | | 93,043 | | | 63,176 | |
| Other assets | | | 104,675 | | | 81,410 | |
Total Assets | | $ | 4,282,042 | | $ | 3,497,308 | |
| | | | | | | | |
Liabilities | | | | | | | |
| Non-interest bearing deposits | | $ | 300,689 | | $ | 252,625 | |
| Interest bearing deposits | | | 3,250,324 | | | 2,570,757 | |
| Total deposits | | | 3,551,013 | | | 2,823,382 | |
| | | | | | | | |
| Funds borrowed | | | 289,733 | | | 296,980 | |
| Long-term debt - trust preferred securities | | | 98,000 | | | 98,000 | |
| Other liabilities | | | 45,204 | | | 40,317 | |
Total Liabilities | | | 3,983,950 | | | 3,258,679 | |
| | | | | | | | |
Stockholders' Equity | | | | | | | |
| Common stock and additional paid-in-capital | | | 175,405 | | | 142,649 | |
| Treasury stock | | | (5,202 | ) | | (2,728 | ) |
| Retained earnings | | | 122,018 | | | 91,274 | |
| Accumulated other comprehensive income | | | 5,871 | | | 7,434 | |
Total Stockholders' Equity | | | 298,092 | | | 238,629 | |
| | | | | | | | |
Total Liabilities and | | | | | | | |
Stockholders' Equity | | $ | 4,282,042 | | $ | 3,497,308 | |
| | | | | | | | |
Book Value Per Share | | $ | 13.88 | | $ | 11.64 | |
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 Statements of Income
(dollars in thousands except per share data)
| | | Three Months Ended | | Twelve Months Ended | |
| | | December 31, | | December 31, | |
| | | 2006 | | 2005 | | 2006 | | 2005 | |
| | | unaudited | | | | unaudited | | | |
Interest Income | | | | | | | | | |
| Interest and fees on loans | | $ | 64,418 | | $ | 45,244 | | $ | 228,816 | | $ | 139,613 | |
| Interest on investment securities | | | 5,227 | | | 8,585 | | | 27,583 | | | 36,319 | |
| Interest on short-term investments | | | 320 | | | 207 | | | 722 | | | 500 | |
Total Interest Income | | | 69,965 | | | 54,036 | | | 257,121 | | | 176,432 | |
| | | | | | | | | | | | | | |
Interest Expense | | | | | | | | | | | | | |
| Interest on deposits | | | 35,774 | | | 21,000 | | | 122,411 | | | 62,649 | |
| Interest on borrowings | | | 2,840 | | | 3,756 | | | 11,093 | | | 13,367 | |
| Interest on long-term debt - trust preferred securities | | | 1,554 | | | 1,563 | | | 6,143 | | | 4,016 | |
Total Interest Expense | | | 40,168 | | | 26,319 | | | 139,647 | | | 80,032 | |
| | | | | | | | | | | | | | |
Net Interest Income | | | 29,797 | | | 27,717 | | | 117,474 | | | 96,400 | |
| Provision for loan losses | | | 707 | | | 1,690 | | | 6,836 | | | 6,538 | |
Net Interest Income After Provision | | | 29,090 | | | 26,027 | | | 110,638 | | | 89,862 | |
| | | | | | | | | | | | | | |
Non Interest Income | | | | | | | | | | | | | |
| Wealth management income | | | 3,615 | | | 2,771 | | | 13,855 | | | 9,945 | |
| Mortgage banking income | | | 807 | | | 784 | | | 3,339 | | | 3,886 | |
| Other income | | | 1,172 | | | 1,361 | | | 6,278 | | | 4,276 | |
| Net securities gains (losses) | | | (1 | ) | | (192 | ) | | (374 | ) | | 499 | |
| Gains (losses) on interest rate swap | | | - | | | 252 | | | 64 | | | 404 | |
Total Non Interest Income | | | 5,593 | | | 4,976 | | | 23,162 | | | 19,010 | |
| | | | | | | | | | | | | | |
Non Interest Expense | | | | | | | | | | | | | |
| Salaries and benefits | | | 12,205 | | | 10,677 | | | 43,930 | | | 36,311 | |
| Occupancy expense | | | 2,733 | | | 2,012 | | | 9,755 | | | 7,517 | |
| Professional fees | | | 1,976 | | | 1,284 | | | 6,813 | | | 4,551 | |
| Wealth management fees | | | 686 | | | 326 | | | 2,665 | | | 1,079 | |
| Marketing | | | 1,137 | | | 1,140 | | | 4,291 | | | 3,549 | |
| Data processing | | | 999 | | | 820 | | | 3,316 | | | 2,832 | |
| Amortization of intangibles | | | 169 | | | 156 | | | 628 | | | 411 | |
| Insurance | | | 337 | | | 287 | | | 1,319 | | | 1,095 | |
| Other operating expenses | | | 2,321 | | | 2,132 | | | 6,349 | | | 5,341 | |
Total Non Interest Expense | | | 22,563 | | | 18,834 | | | 79,066 | | | 62,686 | |
| | | | | | | | | | | | | | |
| Minority interest expense | | | 82 | | | 76 | | | 330 | | | 307 | |
Income Before Income Taxes | | | 12,038 | | | 12,093 | | | 54,404 | | | 45,879 | |
| Income tax expense | | | 2,986 | | | 3,851 | | | 16,558 | | | 14,965 | |
Net Income | | $ | 9,052 | | $ | 8,242 | | $ | 37,846 | | $ | 30,914 | |
| | | | | | | | | | | | | | |
| | | | | | | | | | | | | | |
Weighted Average Shares Outstanding | | | 20,882,759 | | | 20,427,363 | | | 20,629,731 | | | 20,202,415 | |
Diluted Average Shares Outstanding | | | 21,637,210 | | | 21,410,469 | | | 21,493,283 | | | 21,138,387 | |
| | | | | | | | | | | | | | |
Earnings Per Share | | | | | | | | | | | | | |
| Basic | | $ | 0.43 | | $ | 0.40 | | $ | 1.83 | | $ | 1.53 | |
| Diluted | | $ | 0.42 | | $ | 0.39 | | $ | 1.76 | | $ | 1.46 | |
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)
| | | 4Q06 | | 3Q06 | | 2Q06 | | 1Q06 | | 4Q05 | |
Key Statistics | | | | | | | | | | | |
| Net income | | $ | 9,052 | | $ | 9,794 | | $ | 10,013 | | $ | 8,987 | | $ | 8,242 | |
| Basic earnings per share | | $ | 0.43 | | $ | 0.48 | | $ | 0.48 | | $ | 0.44 | | $ | 0.40 | |
| Diluted earnings per share | | $ | 0.42 | | $ | 0.46 | | $ | 0.47 | | $ | 0.42 | | $ | 0.39 | |
| | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | |
| Return on average total assets | | | 0.91 | % | | 1.04 | % | | 1.10 | % | | 1.03 | % | | 0.97 | % |
| Return on average total equity | | | 13.57 | % | | 15.25 | % | | 16.45 | % | | 15.21 | % | | 14.44 | % |
| Dividend payout ratio | | | 14.44 | % | | 12.96 | % | | 12.65 | % | | 14.06 | % | | 11.41 | % |
Fee revenue as a percent of total revenue (1) | | | 15.81 | % | | 15.79 | % | | 19.48 | % | | 15.32 | % | | 15.07 | % |
| Wealth management assets under management | | | 2,902,205 | | | 2,780,121 | | | 2,686,255 | | | 2,716,599 | | | 2,436,766 | |
| | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | |
| Non-interest income to average assets | | | 0.56 | % | | 0.63 | % | | 0.73 | % | | 0.57 | % | | 0.58 | % |
| Non-interest expense to average assets | | | 2.27 | % | | 2.13 | % | | 2.08 | % | | 2.01 | % | | 2.20 | % |
Net overhead ratio (2) | | | 1.70 | % | | 1.50 | % | | 1.35 | % | | 1.44 | % | | 1.62 | % |
Efficiency ratio (3) | | | 61.9 | % | | 53.9 | % | | 50.3 | % | | 51.7 | % | | 55.7 | % |
| | | | | | | | | | | | | | | | | |
Net interest margin | | | | | | | | | | | | | | | | |
| Fed funds sold & other short-term investments | | | 5.48 | % | | 6.40 | % | | 5.02 | % | | 4.81 | % | | 4.61 | % |
| Investment Securities (taxable) | | | 4.51 | % | | 5.50 | % | | 5.75 | % | | 4.88 | % | | 5.02 | % |
| Investment Securities (non-taxable) | | | 6.90 | % | | 6.88 | % | | 6.90 | % | | 6.91 | % | | 6.91 | % |
| Loans, net of unearned discount | | | 7.78 | % | | 7.83 | % | | 7.64 | % | | 7.39 | % | | 7.14 | % |
| Yield on average earning assets | | | 7.49 | % | | 7.59 | % | | 7.39 | % | | 7.00 | % | | 6.79 | % |
| Interest bearing deposits | | | 4.65 | % | | 4.53 | % | | 4.21 | % | | 3.84 | % | | 3.45 | % |
| Funds borrowed | | | 5.15 | % | | 5.20 | % | | 4.58 | % | | 4.24 | % | | 4.04 | % |
| Trust preferred securities | | | 6.21 | % | | 6.21 | % | | 6.17 | % | | 6.14 | % | | 7.00 | % |
| Cost of average interest-bearing liabilities | | | 4.73 | % | | 4.62 | % | | 4.29 | % | | 3.96 | % | | 3.64 | % |
Net interest spread (4) | | | 2.77 | % | | 2.97 | % | | 3.10 | % | | 3.04 | % | | 3.15 | % |
Net interest margin (5) | | | 3.25 | % | | 3.47 | % | | 3.55 | % | | 3.45 | % | | 3.55 | % |
| | | | | | | | | | | | | | | | | |
Tax equivalent adjustment to net interest income (6) | | $ | 1,058 | | $ | 1,166 | | $ | 1,173 | | $ | 1,174 | | $ | 1,143 | |
(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 | |
| | | | |
| | | 4Q06 | | 3Q06 | | 2Q06 | | 1Q06 | | 4Q05 | |
| Net interest income | | $ | 29,797 | | $ | 30,040 | | $ | 29,862 | | $ | 27,775 | | $ | 27,717 | |
| Tax equivalent adjustment to net interest income | | | 1,058 | | | 1,166 | | | 1,173 | | | 1,174 | | | 1,143 | |
| Net interest income, tax equivalent basis | | $ | 30,855 | | $ | 31,206 | | $ | 31,035 | | $ | 28,949 | | $ | 28,860 | |
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)
| | | 4Q06 | | 3Q06 | | 2Q06 | | 1Q06 | | 4Q05 | |
Balance Sheet Ratios | | | | | | | | | | | |
| Loans to Deposits (period end) | | | 98.56 | % | | 96.84 | % | | 94.57 | % | | 94.78 | % | | 92.37 | % |
| | | | | | | | | | | | | | | | | |
| Average interest-earning assets to average interest-bearing liabilities | | | 111.3 | | | 112.2 | | | 111.9 | | | 111.2 | | | 112.0 | |
| | | | | | | | | | | | | | | | | |
Per Share Data | | | | | | | | | | | | | | | | |
| Dividends | | $ | 0.060 | | $ | 0.060 | | $ | 0.060 | | $ | 0.060 | | $ | 0.045 | |
| Book value (period end) | | $ | 13.88 | | $ | 12.87 | | $ | 12.22 | | $ | 11.86 | | $ | 11.64 | |
Tangible book value (period end) (1) | | $ | 9.20 | | $ | 9.59 | | $ | 8.92 | | $ | 8.55 | | $ | 8.46 | |
| | | | | | | | | | | | | | | | | |
Share Price Data (period end) | | | | | | | | | | | | | | | | |
| Closing Price | | $ | 41.63 | | $ | 45.72 | | $ | 41.41 | | $ | 41.49 | | $ | 35.57 | |
Diluted earnings multiple (2) | | | 24.98 | x | | 25.05 | x | | 21.97 | x | | 24.36 | x | | 22.99 | x |
| Book value multiple | | | 3.00 | x | | 3.55 | x | | 3.39 | x | | 3.50 | x | | 3.05 | x |
| | | | | | | | | | | | | | | | | |
Common Stock Information | | | | | | | | | | | | | | | | |
| Outstanding shares at end of period | | | 21,478,900 | | | 20,842,083 | | | 20,769,859 | | | 20,729,339 | | | 20,491,934 | |
| | | | | | | | | | | | | | | | | |
Number of shares used to compute: | | | | | | | | | | | | | | | | |
| Basic earnings per share | | | 20,882,759 | | | 20,581,504 | | | 20,659,566 | | | 20,561,694 | | | 20,427,363 | |
| Diluted earnings per share | | | 21,637,210 | | | 21,440,343 | | | 21,523,387 | | | 21,424,810 | | | 21,410,469 | |
| | | | | | | | | | | | | | | | | |
Capital Ratios (period end) (3): | | | | | | | | | | | | | | | | |
| Total equity to total assets | | | 6.96 | % | | 6.92 | % | | 6.95 | % | | 6.70 | % | | 6.82 | % |
| Total risk-based capital ratio | | | 10.34 | % | | 10.71 | % | | 10.66 | % | | 10.51 | % | | 10.65 | % |
| Tier-1 risk-based capital ratio | | | 8.14 | % | | 8.65 | % | | 8.65 | % | | 8.57 | % | | 8.61 | % |
| Leverage ratio | | | 7.56 | % | | 7.26 | % | | 7.44 | % | | 7.28 | % | | 7.18 | % |
(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) | |
| | |
| | | | | | | | | | | | |
| | | 4Q06 | | 3Q06 | | 2Q06 | | 1Q06 | | 4Q05 | |
Summary Income Statement | | | | | | | | | | | |
Interest Income | | | | | | | | | | | |
| Interest and fees on loans | | $ | 64,418 | | $ | 60,361 | | $ | 55,127 | | $ | 48,910 | | $ | 45,244 | |
| Interest on investment securities | | | 5,227 | | | 6,320 | | | 7,734 | | | 8,302 | | | 8,585 | |
| Interest on short-term investments | | | 320 | | | 116 | | | 199 | | | 87 | | | 207 | |
Total Interest Income | | | 69,965 | | | 66,797 | | | 63,060 | | | 57,299 | | | 54,036 | |
| | | | | | | | | | | | | | | | | |
Interest Expense | | | 40,168 | | | 36,757 | | | 33,198 | | | 29,524 | | | 26,319 | |
| | | | | | | | | | | | | | | | | |
Net Interest Income | | | 29,797 | | | 30,040 | | | 29,862 | | | 27,775 | | | 27,717 | |
| Provision for loan losses | | | 707 | | | 1,494 | | | 2,382 | | | 2,253 | | | 1,690 | |
Net Interest Income after Provision for Loan Losses | | | 29,090 | | | 28,546 | | | 27,480 | | | 25,522 | | | 26,027 | |
| | | | | | | | | | | | | | | | | |
Non Interest Income | | | | | | | | | | | | | | | | |
| Wealth management income | | | 3,615 | | | 3,477 | | | 3,603 | | | 3,160 | | | 2,771 | |
| Mortgage banking income | | | 807 | | | 804 | | | 1,005 | | | 724 | | | 784 | |
| Other income | | | 1,172 | | | 1,351 | | | 2,616 | | | 1,138 | | | 1,361 | |
| Net securities (losses) gains | | | (1 | ) | | 1,212 | | | (1,007 | ) | | (578 | ) | | (192 | ) |
| Gains (losses) on interest rate swap | | | - | | | (904 | ) | | 413 | | | 555 | | | 252 | |
Total Non Interest Income | | | 5,593 | | | 5,940 | | | 6,630 | | | 4,999 | | | 4,976 | |
| | | | | | | | | | | | | | | | | |
Non Interest Expense | | | | | | | | | | | | | | | | |
| Salaries and benefits | | | 12,205 | | | 10,864 | | | 10,325 | | | 10,536 | | | 10,677 | |
| Occupancy expense | | | 2,733 | | | 2,639 | | | 2,214 | | | 2,169 | | | 2,012 | |
| Professional fees | | | 1,976 | | | 1,866 | | | 1,955 | | | 1,016 | | | 1,284 | |
| Wealth management fees | | | 686 | | | 774 | | | 799 | | | 406 | | | 326 | |
| Marketing | | | 1,137 | | | 1,159 | | | 1,083 | | | 913 | | | 1,140 | |
| Data processing | | | 999 | | | 788 | | | 764 | | | 766 | | | 820 | |
| Insurance | | | 337 | | | 349 | | | 323 | | | 310 | | | 287 | |
| Amortization of intangibles | | | 169 | | | 152 | | | 153 | | | 154 | | | 156 | |
| Other operating expenses | | | 2,321 | | | 1,420 | | | 1,318 | | | 1,288 | | | 2,132 | |
Total Non Interest Expense | | | 22,563 | | | 20,011 | | | 18,934 | | | 17,558 | | | 18,834 | |
| | | | | | | | | | | | | | | | | |
| Minority interest expense | | | 82 | | | 85 | | | 86 | | | 77 | | | 76 | |
Income Before Income Taxes | | | 12,038 | | | 14,390 | | | 15,090 | | | 12,886 | | | 12,093 | |
| Income tax expense | | | 2,986 | | | 4,596 | | | 5,077 | | | 3,899 | | | 3,851 | |
Net income | | $ | 9,052 | | $ | 9,794 | | $ | 10,013 | | $ | 8,987 | | $ | 8,242 | |
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) | |
| | | | | | | | | | | | |
| | | | | | | | | | | | |
| | | 4Q06 | | 3Q06 | | 2Q06 | | 1Q06 | | 4Q05 | |
Credit Quality | | | | | | | | | | | |
Key Ratios | | | | | | | | | | | |
| Net charge-offs (recoveries) to average loans | | | 0.01 | % | | 0.04 | % | | 0.05 | % | | 0.02 | % | | 0.03 | % |
| Total non-performing loans to total loans | | | 0.25 | % | | 0.06 | % | | 0.10 | % | | 0.15 | % | | 0.04 | % |
| Total non-performing assets to total assets | | | 0.23 | % | | 0.06 | % | | 0.09 | % | | 0.12 | % | | 0.04 | % |
| Nonaccrual loans to: | | | | | | | | | | | | | | | | |
| total loans | | | 0.11 | % | | 0.02 | % | | 0.06 | % | | 0.12 | % | | 0.03 | % |
| total assets | | | 0.09 | % | | 0.02 | % | | 0.05 | % | | 0.09 | % | | 0.02 | % |
| Allowance for loan losses to: | | | | | | | | | | | | | | | | |
| total loans | | | 1.09 | % | | 1.11 | % | | 1.13 | % | | 1.13 | % | | 1.13 | % |
| non-performing loans | | | 380 | % | | 1490 | % | | 1051 | % | | 693 | % | | 2201 | % |
| nonaccrual loans | | | 1010 | % | | 5897 | % | | 1946 | % | | 976 | % | | 4434 | % |
| | | | | | | | | | | | | | | | | |
Non-performing assets: | | | | | | | | | | | | | | | | |
| Loans delinquent over 90 days | | $ | 5,137 | | $ | 1,260 | | $ | 1,262 | | $ | 1,080 | | $ | 280 | |
| Nonaccrual loans | | | 3,770 | | | 588 | | | 1,721 | | | 3,228 | | | 663 | |
| OREO | | | 1,101 | | | 480 | | | 203 | | | 235 | | | 393 | |
| Total non-performing assets | | $ | 10,008 | | $ | 2,328 | | $ | 3,186 | | $ | 4,543 | | $ | 1,336 | |
| | | | | | | | | | | | | | | | | |
Net loan charge-offs (recoveries): | | | | | | | | | | | | | | | | |
| Loans charged off | | $ | 86 | | $ | 308 | | $ | 466 | | $ | 165 | | $ | 188 | |
| (Recoveries) | | | (37 | ) | | (17 | ) | | (77 | ) | | (21 | ) | | (2 | ) |
| Net charge-offs (recoveries) | | $ | 49 | | $ | 291 | | $ | 389 | | $ | 144 | | $ | 186 | |
| | | | | | | | | | | | | | | | | |
Provision for loan losses | | $ | 707 | | $ | 1,494 | | $ | 2,382 | | $ | 2,253 | | $ | 1,690 | |
| | | | | | | | | | | | | | | | | |
Allowance for Loan Losses Summary | | | | | | | | | | | | | | | | |
| Balance at beginning of period | | $ | 34,693 | | $ | 33,490 | | $ | 31,497 | | $ | 29,388 | | $ | 27,884 | |
| Provision | | | 707 | | | 1,494 | | | 2,382 | | | 2,253 | | | 1,690 | |
| Net charge-offs (recoveries) | | | 49 | | | 291 | | | 389 | | | 144 | | | 186 | |
| Addition of The PrivateBank - Atlanta allowance | | | 2,718 | | | - | | | - | | | - | | | - | |
| Balance at end of period | | $ | 38,069 | | $ | 34,693 | | $ | 33,490 | | $ | 31,497 | | $ | 29,388 | |
| | | | | | | | | | | | | | | | | |
Net loan charge-offs (recoveries): | | | | | | | | | | | | | | | | |
| Commercial real estate | | | - | | | - | | $ | 250 | | | - | | | - | |
| Residential real estate | | | - | | | - | | | - | | | - | | | - | |
| Commercial | | $ | 29 | | $ | 298 | | $ | 180 | | $ | 121 | | | - | |
| Personal | | $ | 20 | | $ | (7 | ) | $ | (41 | ) | $ | 23 | | $ | 186 | |
| Home equity | | | - | | | - | | | - | | | - | | | - | |
| Construction | | | - | | | - | | | - | | | - | | | - | |
| Total net loan charge-offs (recoveries) | | $ | 49 | | $ | 291 | | $ | 389 | | $ | 144 | | $ | 186 | |
Balance Sheets | |
(dollars in thousands) | |
| | | | | | | | | | | | |
| | | | | | | | | | | | |
| | | unaudited | | unaudited | | unaudited | | unaudited | | audited | |
| | | 12/31/06 | | 09/30/06 | | 06/30/06 | | 03/31/06 | | 12/31/05 | |
Assets | | | | | | | | | | | |
| Cash and due from banks | | $ | 48,549 | | $ | 91,026 | | $ | 46,625 | | $ | 42,827 | | $ | 47,736 | |
| Short-term investments | | | 41,145 | | | 33,565 | | | 1,496 | | | 9,613 | | | 14,133 | |
| Investment securities: available-for-sale | | | 496,782 | | | 458,869 | | | 499,801 | | | 682,355 | | | 695,151 | |
| Loans held for sale | | | 14,515 | | | 7,719 | | | 6,443 | | | 9,747 | | | 5,269 | |
| Loans | | | 3,499,989 | | | 3,136,634 | | | 2,956,026 | | | 2,786,075 | | | 2,608,067 | |
| Less: Allowance for loan losses | | | (38,069 | ) | | (34,693 | ) | | (33,490 | ) | | (31,497 | ) | | (29,388 | ) |
| Net loans | | | 3,461,920 | | | 3,101,941 | | | 2,922,536 | | | 2,754,578 | | | 2,578,679 | |
| Premises and equipment, net | | | 21,413 | | | 19,825 | | | 17,902 | | | 15,146 | | | 11,754 | |
| Goodwill | | | 93,043 | | | 63,176 | | | 63,176 | | | 63,176 | | | 63,176 | |
| Other assets | | | 104,675 | | | 100,771 | | | 93,587 | | | 93,775 | | | 81,410 | |
| Total Assets | | $ | 4,282,042 | | $ | 3,876,892 | | $ | 3,651,566 | | $ | 3,671,217 | | $ | 3,497,308 | |
| | | | | | | | | | | | | | | | | |
Liabilities and Stockholders' Equity | | | | | | | | | | | | | | | | |
| Non-interest bearing deposits | | $ | 300,689 | | $ | 280,478 | | $ | 273,003 | | $ | 240,961 | | $ | 252,625 | |
| Interest bearing demand deposits | | | 152,323 | | | 115,531 | | | 127,445 | | | 142,734 | | | 132,787 | |
| Savings and money market deposits | | | 1,575,080 | | | 1,327,932 | | | 1,277,067 | | | 1,243,501 | | | 1,272,353 | |
| Time deposits | | | 1,522,921 | | | 1,514,881 | | | 1,448,259 | | | 1,312,306 | | | 1,165,617 | |
| Total deposits | | | 3,551,013 | | | 3,238,822 | | | 3,125,774 | | | 2,939,502 | | | 2,823,382 | |
| Funds borrowed | | | 289,733 | | | 235,858 | | | 133,163 | | | 351,523 | | | 296,980 | |
| Long-term debt - Trust Preferred Securities | | | 98,000 | | | 98,000 | | | 98,000 | | | 98,000 | | | 98,000 | |
| Other liabilities | | | 45,204 | | | 36,016 | | | 40,860 | | | 36,361 | | | 40,317 | |
| Total liabilities | | | 3,983,950 | | | 3,608,696 | | | 3,397,797 | | | 3,425,386 | | | 3,258,679 | |
| Stockholders' equity | | | 298,092 | | | 268,196 | | | 253,769 | | | 245,831 | | | 238,629 | |
| Total Liabilities and Stockholders' Equity | | $ | 4,282,042 | | $ | 3,876,892 | | $ | 3,651,566 | | $ | 3,671,217 | | $ | 3,497,308 | |
Average Quarterly Balance Sheets | |
(unaudited, dollars in thousands) | |
| | | | | | | | | | | | |
| | | | | | | | | | | | |
| | | 12/31/06 | | 09/30/06 | | 06/30/06 | | 03/31/06 | | 12/31/05 | |
Assets | | | | | | | | | | | |
| Cash and due from banks | | $ | 53,608 | | $ | 43,029 | | $ | 37,582 | | $ | 35,208 | | $ | 36,703 | |
| Short-term investments | | | 21,063 | | | 7,101 | | | 15,646 | | | 7,317 | | | 17,522 | |
| Investment securities: available-for-sale | | | 464,005 | | | 494,626 | | | 579,223 | | | 696,323 | | | 702,351 | |
| Loans held for sale | | | 10,891 | | | 6,875 | | | 7,375 | | | 7,655 | | | 7,541 | |
| Loans | | | 3,259,405 | | | 3,037,863 | | | 2,869,754 | | | 2,660,074 | | | 2,499,060 | |
| Less: Allowance for loan losses | | | (36,175 | ) | | (34,335 | ) | | (32,517 | ) | | (30,018 | ) | | (28,475 | ) |
| Net loans | | | 3,223,230 | | | 3,003,528 | | | 2,837,237 | | | 2,630,056 | | | 2,470,585 | |
| Premises and equipment, net | | | 20,594 | | | 19,137 | | | 17,148 | | | 14,417 | | | 10,649 | |
| Goodwill | | | 69,344 | | | 63,176 | | | 63,176 | | | 63,176 | | | 63,161 | |
| Other assets | | | 86,519 | | | 89,168 | | | 85,581 | | | 88,125 | | | 82,430 | |
| Total Assets | | $ | 3,949,254 | | $ | 3,726,640 | | $ | 3,642,968 | | $ | 3,542,277 | | $ | 3,390,942 | |
| | | | | | | | | | | | | | | | | |
Liabilities and Stockholders' Equity | | | | | | | | | | | | | | | | |
| Non-interest bearing deposits | | $ | 273,576 | | $ | 271,287 | | $ | 264,798 | | $ | 240,119 | | $ | 256,782 | |
| Interest bearing demand deposits | | | 119,575 | | | 122,321 | | | 128,854 | | | 123,524 | | | 127,769 | |
| Savings and money market deposits | | | 1,445,841 | | | 1,315,230 | | | 1,273,639 | | | 1,240,914 | | | 1,191,130 | |
| Time deposits | | | 1,490,240 | | | 1,435,345 | | | 1,389,356 | | | 1,230,534 | | | 1,096,528 | |
| Total deposits | | | 3,329,232 | | | 3,144,183 | | | 3,056,647 | | | 2,835,091 | | | 2,672,209 | |
| Funds borrowed | | | 209,039 | | | 180,608 | | | 206,098 | | | 326,862 | | | 363,540 | |
| Long-term debt - Trust Preferred Securities | | | 98,000 | | | 98,000 | | | 98,000 | | | 98,000 | | | 89,304 | |
| Other liabilities | | | 48,350 | | | 49,034 | | | 38,033 | | | 42,728 | | | 39,314 | |
| Total liabilities | | | 3,684,621 | | | 3,471,825 | | | 3,398,778 | | | 3,302,681 | | | 3,164,367 | |
| Stockholders' equity | | | 264,633 | | | 254,815 | | | 244,190 | | | 239,596 | | | 226,575 | |
| Total Liabilities and Stockholders' Equity | | $ | 3,949,254 | | $ | 3,726,640 | | $ | 3,642,968 | | $ | 3,542,277 | | $ | 3,390,942 | |
Average Year-To-Date Balance Sheets | |
(unaudited, dollars in thousands) | |
| | | | | | | | | | | | |
| | | | | | | | | | | | |
| | | 12/31/06 | | 09/30/06 | | 06/30/06 | | 03/31/06 | | 12/31/05 | |
Assets | | | | | | | | | | | |
| Cash and due from banks | | $ | 28,955 | | $ | 38,598 | | $ | 36,348 | | $ | 35,208 | | $ | 33,043 | |
| Short-term investments | | | 10,626 | | | 6,593 | | | 11,505 | | | 7,317 | | | 14,730 | |
| Investment securities: available-for-sale | | | 557,696 | | | 589,318 | | | 637,450 | | | 696,323 | | | 743,162 | |
| Loans held for sale | | | 7,718 | | | 7,368 | | | 7,520 | | | 7,655 | | | 7,875 | |
| Loans | | | 2,959,124 | | | 2,857,212 | | | 2,765,489 | | | 2,660,075 | | | 2,077,000 | |
| Less: Allowance for loan losses | | | (33,281 | ) | | (32,305 | ) | | (31,274 | ) | | (30,018 | ) | | (23,725 | ) |
| Net loans | | | 2,925,843 | | | 2,824,907 | | | 2,734,215 | | | 2,630,057 | | | 2,053,275 | |
| Premises and equipment, net | | | 18,094 | | | 17,190 | | | 15,790 | | | 14,417 | | | 8,538 | |
| Goodwill | | | 64,730 | | | 63,176 | | | 63,176 | | | 63,176 | | | 43,262 | |
| Other assets | | | 87,633 | | | 83,975 | | | 81,747 | | | 88,124 | | | 71,616 | |
| Total Assets | | $ | 3,701,295 | | $ | 3,631,125 | | $ | 3,587,751 | | $ | 3,542,277 | | $ | 2,975,501 | |
| | | | | | | | | | | | | | | | | |
Liabilities and Stockholders' Equity | | | | | | | | | | | | | | | | |
| Non-interest bearing deposits | | $ | 252,338 | | $ | 259,094 | | $ | 252,529 | | $ | 240,119 | | $ | 214,826 | |
| Interest bearing demand deposits | | | 123,554 | | | 124,895 | | | 126,204 | | | 123,524 | | | 114,743 | |
| Savings and money market deposits | | | 1,319,457 | | | 1,276,866 | | | 1,257,367 | | | 1,240,914 | | | 1,067,763 | |
| Time deposits | | | 1,387,214 | | | 1,352,495 | | | 1,310,384 | | | 1,230,534 | | | 887,716 | |
| Total deposits | | | 3,082,563 | | | 3,013,350 | | | 2,946,484 | | | 2,835,091 | | | 2,285,048 | |
| Funds borrowed | | | 230,461 | | | 237,247 | | | 266,123 | | | 326,862 | | | 386,184 | |
| Long-term debt - Trust Preferred Securities | | | 98,000 | | | 98,000 | | | 98,000 | | | 98,000 | | | 53,633 | |
| Other liabilities | | | 44,376 | | | 40,741 | | | 36,410 | | | 42,728 | | | 34,833 | |
| Total liabilities | | | 3,455,400 | | | 3,389,338 | | | 3,347,017 | | | 3,302,681 | | | 2,759,698 | |
| Stockholders' equity | | | 245,895 | | | 241,787 | | | 240,734 | | | 239,596 | | | 215,803 | |
| Total Liabilities and Stockholders' Equity | | $ | 3,701,295 | | $ | 3,631,125 | | $ | 3,587,751 | | $ | 3,542,277 | | $ | 2,975,501 | |
14
