Exhibit 99.1
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![LOGO](https://capedge.com/proxy/8-K/0001193125-13-018244/g470742g03c78.jpg) | | For further information: |
Media Contact:
Amy Yuhn
312-564-1378
ayuhn@theprivatebank.com
Investor Relations Contact:
Sarah Lewensohn
312-564-3894
slewensohn@theprivatebank.com
For Immediate Release
PrivateBancorp Reports Fourth Quarter and Full Year 2012 Results
| • | | Fourth quarter earnings per share of $0.26 |
| • | | Loan growth of 5 percent during the quarter |
| • | | Full year 2012 diluted earnings per share of $0.88, compared to $0.43 per share in 2011 |
CHICAGO, January 22, 2013 – PrivateBancorp, Inc. (NASDAQ: PVTB) today reported net income available to common shareholders of $20.0 million, or $0.26 per diluted share, for the fourth quarter 2012, compared to $7.6 million, or $0.11 per diluted share, for the fourth quarter 2011. For the 12 months ended December 31, 2012, the Company had net income available to common shareholders of $64.5 million, or $0.88 per diluted share, compared to $30.7 million, or $0.43 per diluted share, for the prior year.
“Our 2012 performance demonstrates our commitment to improved earnings and a stronger balance sheet as we more than doubled net income, grew our business and strengthened asset quality,” said Larry D. Richman, President and Chief Executive Officer, PrivateBancorp, Inc.
“We continued our earnings momentum in the fourth quarter and leveraged our client relationship development capabilities to generate solid loan and deposit growth, including significant year-end activity, and increased fee income,” Richman continued. “Non-performing assets declined again this quarter as disposition activity continued. Despite continued pressure on net interest margin from the competitive environment, we succeeded in growing both net revenue and net income.
“As we move into 2013, our clients are telling us they are generally feeling better about their business performance even though their economic outlook is impacted by the continued uncertainty over fiscal policy,” Richman concluded. “We will remain focused on developing profitable new relationships, to do more for our existing clients and to manage expenses in order to continue to drive improved profitability and shareholder return.”
Fourth Quarter Results
| • | | Net income was $20.0 million, or $0.26 per share, for the fourth quarter and included a charge of $2.2 million, or $0.03 per share, associated with the redemption of the TARP preferred shares. |
| • | | Net interest income of $104.8 million for the fourth quarter was relatively unchanged from the third quarter 2012 as higher loan balances offset the impact of lower loan and investment yields. |
| • | | Total loans grew 5 percent in the fourth quarter to $10.1 billion, primarily from commercial and industrial loans. |
| • | | Total deposits increased 7 percent during the fourth quarter to $12.2 billion at December 31, 2012, including a 12 percent increase in noninterest bearing deposits. |
| • | | Asset quality continued to improve in the fourth quarter with a 21 percent reduction in non-performing assets from September 30, 2012. Non-performing assets to total assets were 1.57 percent at December 31, 2012, compared to 2.09 percent at September 30, 2012. |
Operating Performance
Net revenue was $135.0 million in the fourth quarter 2012, compared to $129.0 million in the fourth quarter 2011 and $134.0 million in the third quarter 2012. Operating profit was $53.7 million in the fourth quarter 2012, compared to $52.8 million in the fourth quarter 2011 and $52.2 million in the third quarter 2012. Increased revenue from fee income and loan growth contributed to a 3 percent increase in operating profit compared to the previous quarter. For the full year 2012, net revenue increased 5 percent to $533.8 million compared to 2011. For the full year, operating profit was $206.7 million, compared to $206.0 million in 2011. The full year results include net securities losses of $205,000 for 2012 and net securities gains of $5.8 million for 2011.
Net interest income was $104.8 million in the fourth quarter 2012, compared to $103.0 million for the fourth quarter 2011 and $105.4 million in the third quarter 2012. For the full year 2012, net interest income increased 3 percent to $419.9 million, from $407.1 million for full year 2011. Growth in average loans offset the impact of lower loan and investment yields during the fourth quarter; however, net interest income was impacted by $1.8 million of interest expense associated with $125 million of subordinated debt issued in mid-October to refinance a portion of the TARP preferred stock redemption.
Net interest margin was 3.16 percent for the fourth quarter 2012, compared to 3.48 percent in the fourth quarter 2011 and 3.35 percent for the third quarter 2012. Net interest margin this quarter was impacted by a number of items including a reduction of 9 basis points attributable to the Company’s decision to have higher cash balances on deposit at the Federal Reserve, 7 basis points attributable to the subordinated debt issued as part of the redemption of TARP, and the remaining 3 basis points attributable to declining asset yields offset by improved deposit costs and mix.
Non-interest income was $29.5 million in the fourth quarter 2012, compared to $25.4 million in the fourth quarter 2011 and $27.8 million in the third quarter 2012. Growth in mortgage banking, and treasury management fees contributed to the increase in non-interest income in the fourth quarter. Mortgage banking benefited from growth in the mortgage banking team during the year and continued demand for refinancing during the quarter. The fourth quarter 2012 capital markets revenue included a positive credit valuation adjustment of $854,000 compared to $244,000 in the fourth quarter 2011, and $5,000 in the third quarter 2012. For the full year 2012, non-interest income, excluding net securities gains, increased 20 percent to $111.2 million compared to $92.5 million in the prior year.
Expenses
Non-interest expense was $81.3 million in the fourth quarter 2012, compared to $76.2 million in the fourth quarter 2011 and $81.7 million in the third quarter 2012. Non-interest expense for the full year 2012 was $327.1 million, compared to $302.3 million for the full year 2011. Net foreclosed property expense was higher in the fourth quarter 2012 and reflects greater losses on a higher volume of OREO sales and increased property ownership costs, while valuation impairments remained elevated. The efficiency ratio for the fourth quarter 2012 was 60.2 percent, compared to 59.1 percent for the fourth quarter 2011, and 61.0 percent for the third quarter 2012.
The effective tax rate for the fourth quarter was 42 percent and was largely impacted by reduced tax benefits relating to previously awarded stock-based compensation. Based on current statutory tax rates, the Company estimates an effective tax rate for 2013 in the range of 38 to 39 percent.
Credit Quality
The 2012 results reflect continued progress in improving overall asset quality. Non-performing assets declined 43 percent from December 31, 2011 and 21 percent from the third quarter 2012. Non-performing assets to total assets were 1.57 percent at December 31, 2012, compared to 3.11 percent at December 31, 2011, and 2.09 percent at September 30, 2012. Non-performing assets declined meaningfully again this quarter driven by a 26 percent reduction to inflows and ongoing disposition activity. Disposition of problem loans and OREO together remain in line with prior quarter activity levels. Special mention and potential problem loans were $204.7 million at the end of the fourth quarter, down 46 percent from a year ago and 6 percent from the third quarter 2012. The Company continues to focus on improving asset quality, and expects lower nonperforming assets as it moves through the next several quarters.
The allowance for loan losses at December 31, 2012 was 1.59 percent of total loans, down from 2.13 percent at December 31, 2011 and 1.73 percent at September 30, 2012. The allowance for loan losses as a percentage of non-performing loans was 116 percent at December 31, 2012, compared to 74 percent at December 31, 2011, and 93 percent at September 30, 2012. While the general allocated reserve remained relatively flat from last quarter as a function of higher loan growth and improved portfolio mix and overall asset quality, the amount of specific reserves declined as a result of the decreasing impaired loan population. Charge-offs were down 49 percent compared to the fourth quarter 2011, and down 8 percent compared to the previous quarter.
Credit quality results exclude covered assets acquired through an FDIC-assisted transaction that are subject to a loss-sharing agreement.
Balance Sheet
Total assets were $14.1 billion at December 31, 2012, compared to $12.4 billion at December 31, 2011, and $13.3 billion at September 30, 2012. Total loans were $10.1 billion at December 31, 2012, an increase of 13 percent from December 31, 2011, and an increase of 5 percent from September 30, 2012. The loan growth was primarily in commercial and industrial loans, which is 64 percent of our total loan portfolio. A portion of the loan growth, which was elevated relative to prior quarters in 2012, included client borrowings in response to potential changes in the future tax rates, of which a portion may be repaid or syndicated in the first half of 2013.
Total deposits were $12.2 billion at December 31, 2012, compared to $10.4 billion at December 31, 2011, and $11.4 billion at September 30, 2012. This quarter the Company saw increased deposit inflows that resulted in a higher level of cash on deposit at the Federal Reserve. The Company built higher levels of liquid assets in the second half of the year in part due to uncertainty relating to the potential impact on deposit activity from the expiration at year-end of the unlimited FDIC deposit insurance on non-interest bearing transaction accounts. Consistent with the activity seen last year, the Company expects some deposit outflows to occur in the first quarter 2013. The Company will pursue appropriate opportunities to manage balance sheet movements and reduce excess funds.
The Company’s investment securities portfolio was $2.3 billion at December 31, 2012, flat compared to December 31, 2011, and September 30, 2012. The securities portfolio is primarily composed of U.S. government agency backed mortgage securities, agency backed collateralized mortgage obligations, and investment grade municipal bonds.
Capital
On October 24, 2012, the Company used the net proceeds from subordinated debt and common stock offerings in October 2012, plus additional cash on its balance sheet to redeem the $243.8 million of preferred stock issued under TARP. In connection with the transaction in the fourth quarter, the Company accelerated accretion of the remaining $2.2 million discount on the preferred stock and paid $813,000 of preferred dividends upon redemption. Going forward, the TARP repayment eliminates approximately $3.4 million of quarterly preferred dividends and discount accretion. Subordinated debt issued in October 2012 will add approximately $2.2 million, or $1.4 million after tax, of incremental, quarterly interest expense.
As of December 31, 2012, the total risk-based capital ratio was 13.13 percent, the Tier 1 risk-based capital ratio was 10.48 percent, and the leverage ratio was 9.50 percent. Tier 1 common capital ratio was 8.50 percent and tangible common equity ratio was 7.88 percent at the end of the fourth quarter 2012.
Quarterly Conference Call and Webcast Presentation
PrivateBancorp will host a conference call on Tuesday, January 22, 2013, at 10 a.m. CT. The call may be accessed by telephone at (888) 782-9127 (U.S. and Canada) or (706) 634-5643 (International) and entering passcode # 85400469. A live webcast of the call can be accessed on the Company website atwww.theprivatebank.com by visiting the Investor Relations tab under the About Us section. A rebroadcast will be available beginning approximately two hours after the call until midnight on February 5, 2013, by calling (855) 859-2056 (U.S. and Canada) or (404) 537-3406 (International) and entering passcode # 85400469.
About PrivateBancorp, Inc.
PrivateBancorp, Inc., through its subsidiaries, delivers customized business and personal financial services to middle-market companies, as well as business owners, executives, entrepreneurs and families in all of the markets and communities we serve. As of December 31, 2012, the Company had 35 offices in 10 states and $14.1 billion in assets. The Company website is www.theprivatebank.com.
Forward-Looking Statements
Statements contained in this press release that are not historical facts may constitute forward-looking statements within the meaning of federal securities laws. Our ability to predict results or the actual effects of future plans, strategies or events is inherently uncertain. Factors which could cause actual results to differ from those reflected in forward-looking statements include, but are not limited to: unforeseen credit quality problems or further deterioration in problem loans that could result in charge-offs greater than we have anticipated in our allowance for loan losses; slower than anticipated dispositions of other real estate owned which may result in increased losses and ongoing elevated foreclosed property expense; continued uncertainty regarding U.S. and global economic recovery and economic outlook, and ongoing volatility in market conditions, that may impact credit quality or prolong weakness in demand for loans or other banking products and services; unanticipated changes in interest rates; competitive pricing trends; lack of sufficient or cost-effective sources of liquidity or funding as and when needed; loss of key personnel or an inability to recruit and retain appropriate talent; uncertainty relating to recently proposed regulatory capital rules that could, depending on the nature of our assets, require us to maintain higher levels of regulatory capital; uncertainty regarding implications of other changes in regulatory requirements relating to implementation of the Dodd-Frank Wall Street Reform and Consumer Protection Act that may negatively affect our revenues or profitability; other legislative, regulatory or accounting changes affecting financial services companies and/or the products
and services offered by financial services companies; changes in monetary or fiscal policies of the U.S. Government; or failures or disruptions to our data processing or other information or operational systems, including the potential impact of disruptions or breaches at our third party service providers. Forward-looking statements are subject to risks, assumptions and uncertainties and could be significantly affected by many factors, including those set forth in the “Risk Factors” section of our Form 10-K for the year ended December 31, 2011 as well as those set forth in our subsequent periodic and current reports filed with the SEC. These factors should be considered in evaluating forward- looking statements and undue reliance should not be placed on our forward-looking statements. Forward-looking statements speak only as of the date they are made and we assume no obligation to update any of these statements in light of new information, future events or otherwise, unless required under the federal securities laws.
Non-GAAP Measures
This press release contains both financial measures based on accounting principles generally accepted in the United States (GAAP) and non-GAAP based financial measures. The Company believes that these non-GAAP financial measures provide information useful to investors in understanding the underlying operational performance of the Company, its business, and performance trends and facilitates comparisons with the performance of others in the banking industry. If non-GAAP financial measures are used, the comparable GAAP financial measure, as well as the reconcilement to the comparable GAAP financial measure, can be found in this press release. These disclosures should not be viewed as a substitute for operating results determined in accordance with GAAP, nor are they necessarily comparable to non-GAAP performance measures that may be presented by other companies.
Editor’s Note: Financial highlights attached.
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Consolidated Income Statements (Amounts in thousands except per share data) | | ![LOGO](https://capedge.com/proxy/8-K/0001193125-13-018244/g470742privatebancorp.jpg) |
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| | Three Months Ended December 31, | | | Years Ended December 31, | |
| | 2012 | | | 2011 | | | 2012 | | | 2011 | |
| | unaudited | | | unaudited | | | unaudited | | | audited | |
Interest Income | | | | | | | | | | | | | | | | |
Loans, including fees | | $ | 108,172 | | | $ | 102,897 | | | $ | 423,211 | | | $ | 413,109 | |
Federal funds sold and other short-term investments | | | 452 | | | | 215 | | | | 965 | | | | 1,181 | |
Securities: | | | | | | | | | | | | | | | | |
Taxable | | | 12,938 | | | | 15,173 | | | | 56,826 | | | | 61,026 | |
Exempt from Federal income taxes | | | 1,462 | | | | 1,273 | | | | 5,487 | | | | 5,439 | |
Other interest income | | | 168 | | | | 90 | | | | 547 | | | | 391 | |
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Total interest income | | | 123,192 | | | | 119,648 | | | | 487,036 | | | | 481,146 | |
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Interest Expense | | | | | | | | | | | | | | | | |
Interest-bearing demand deposits | | | 985 | | | | 585 | | | | 3,378 | | | | 2,439 | |
Savings deposits and money market accounts | | | 4,531 | | | | 4,857 | | | | 17,604 | | | | 22,957 | |
Brokered and time deposits | | | 5,561 | | | | 5,561 | | | | 21,832 | | | | 24,676 | |
Short-term borrowings | | | 77 | | | | 152 | | | | 443 | | | | 2,011 | |
Long-term debt | | | 7,235 | | | | 5,511 | | | | 23,846 | | | | 21,936 | |
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Total interest expense | | | 18,389 | | | | 16,666 | | | | 67,103 | | | | 74,019 | |
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Net interest income | | | 104,803 | | | | 102,982 | | | | 419,933 | | | | 407,127 | |
Provision for loan and covered loan losses | | | 13,177 | | | | 31,611 | | | | 71,425 | | | | 132,897 | |
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Net interest income after provision for loan and covered loan losses | | | 91,626 | | | | 71,371 | | | | 348,508 | | | | 274,230 | |
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Non-interest Income | | | | | | | | | | | | | | | | |
Trust and Investments | | | 4,232 | | | | 3,992 | | | | 17,017 | | | | 17,826 | |
Mortgage banking | | | 4,197 | | | | 3,032 | | | | 13,460 | | | | 6,703 | |
Capital markets products | | | 6,744 | | | | 5,471 | | | | 25,958 | | | | 19,341 | |
Treasury management | | | 5,606 | | | | 4,813 | | | | 21,510 | | | | 18,181 | |
Loan and credit-related fees | | | 6,902 | | | | 5,606 | | | | 27,280 | | | | 22,207 | |
Deposit service charges and fees and other income | | | 1,582 | | | | 2,115 | | | | 6,021 | | | | 8,218 | |
Net securities (losses) gains | | | 191 | | | | 364 | | | | (205 | ) | | | 5,771 | |
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Total non-interest income | | | 29,454 | | | | 25,393 | | | | 111,041 | | | | 98,247 | |
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Non-interest Expense | | | | | | | | | | | | | | | | |
Salaries and employee benefits | | | 45,253 | | | | 40,729 | | | | 174,948 | | | | 156,763 | |
Net occupancy expense | | | 7,762 | | | | 7,394 | | | | 30,571 | | | | 29,986 | |
Technology and related costs | | | 3,249 | | | | 3,142 | | | | 13,250 | | | | 11,388 | |
Marketing | | | 2,448 | | | | 2,250 | | | | 10,311 | | | | 8,911 | |
Professional services | | | 1,998 | | | | 2,126 | | | | 8,353 | | | | 9,206 | |
Outsourced servicing costs | | | 1,814 | | | | 2,077 | | | | 7,419 | | | | 8,001 | |
Net foreclosed property expenses | | | 9,571 | | | | 6,862 | | | | 38,296 | | | | 27,782 | |
Postage, telephone, and delivery | | | 909 | | | | 953 | | | | 3,497 | | | | 3,716 | |
Insurance | | | 3,290 | | | | 3,462 | | | | 15,186 | | | | 21,287 | |
Loan and collection expense | | | 2,227 | | | | 3,840 | | | | 11,631 | | | | 13,571 | |
Other expenses | | | 2,794 | | | | 3,395 | | | | 13,670 | | | | 11,666 | |
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Total non-interest expense | | | 81,315 | | | | 76,230 | | | | 327,132 | | | | 302,277 | |
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Income before income taxes | | | 39,765 | | | | 20,534 | | | | 132,417 | | | | 70,200 | |
Income tax provision | | | 16,682 | | | | 9,468 | | | | 54,521 | | | | 25,660 | |
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Net income | | | 23,083 | | | | 11,066 | | | | 77,896 | | | | 44,540 | |
Net income attributable to noncontrolling interests | | | — | | | | 7 | | | | — | | | | 170 | |
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Net income attributable to controlling interests | | | 23,083 | | | | 11,059 | | | | 77,896 | | | | 44,370 | |
Preferred stock dividends and discount accretion | | | 3,043 | | | | 3,430 | | | | 13,368 | | | | 13,690 | |
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Net income available to common stockholders | | $ | 20,040 | | | $ | 7,629 | | | $ | 64,528 | | | $ | 30,680 | |
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Per Common Share Data | | | | | | | | | | | | | | | | |
Basic earnings per share | | $ | 0.26 | | | $ | 0.11 | | | $ | 0.88 | | | $ | 0.43 | |
Diluted earnings per share | | $ | 0.26 | | | $ | 0.11 | | | $ | 0.88 | | | $ | 0.43 | |
Cash dividends declared | | $ | 0.01 | | | $ | 0.01 | | | $ | 0.04 | | | $ | 0.04 | |
Weighted-average common shares outstanding | | | 75,035 | | | | 70,540 | | | | 71,951 | | | | 70,449 | |
Weighted-average diluted common shares outstanding | | | 75,374 | | | | 70,713 | | | | 72,174 | | | | 70,642 | |
Note: Certain reclassifications have been made to prior period financial statements to place them on a basis comparable with the current period financial statements.
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Quarterly Consolidated Income Statements Unaudited (Amounts in thousands except per share data) | | ![LOGO](https://capedge.com/proxy/8-K/0001193125-13-018244/g470742privatebancorp.jpg) |
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| | 4Q12 | | | 3Q12 | | | 2Q12 | | | 1Q12 | | | 4Q11 | |
Interest Income | | | | | | | | | | | | | | | | | | | | |
Loans, including fees | | $ | 108,172 | | | $ | 106,358 | | | $ | 105,142 | | | $ | 103,539 | | | $ | 102,897 | |
Federal funds sold and other short-term investments | | | 452 | | | | 248 | | | | 133 | | | | 132 | | | | 215 | |
Securities: | | | | | | | | | | | | | | | | | | | | |
Taxable | | | 12,938 | | | | 13,907 | | | | 14,723 | | | | 15,258 | | | | 15,173 | |
Exempt from Federal income taxes | | | 1,462 | | | | 1,389 | | | | 1,336 | | | | 1,300 | | | | 1,273 | |
Other interest income | | | 168 | | | | 126 | | | | 131 | | | | 122 | | | | 90 | |
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Total interest income | | | 123,192 | | | | 122,028 | | | | 121,465 | | | | 120,351 | | | | 119,648 | |
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Interest Expense | | | | | | | | | | | | | | | | | | | | |
Interest-bearing demand deposits | | | 985 | | | | 958 | | | | 799 | | | | 636 | | | | 585 | |
Savings deposits and money market accounts | | | 4,531 | | | | 4,206 | | | | 4,265 | | | | 4,602 | | | | 4,857 | |
Brokered and time deposits | | | 5,561 | | | | 5,860 | | | | 5,394 | | | | 5,017 | | | | 5,561 | |
Short-term borrowings | | | 77 | | | | 101 | | | | 123 | | | | 142 | | | | 152 | |
Long-term debt | | | 7,235 | | | | 5,495 | | | | 5,538 | | | | 5,578 | | | | 5,511 | |
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Total interest expense | | | 18,389 | | | | 16,620 | | | | 16,119 | | | | 15,975 | | | | 16,666 | |
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Net interest income | | | 104,803 | | | | 105,408 | | | | 105,346 | | | | 104,376 | | | | 102,982 | |
Provision for loan and covered loan losses | | | 13,177 | | | | 13,509 | | | | 17,038 | | | | 27,701 | | | | 31,611 | |
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Net interest income after provision for loan and covered loan losses | | | 91,626 | | | | 91,899 | | | | 88,308 | | | | 76,675 | | | | 71,371 | |
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Non-interest Income | | | | | | | | | | | | | | | | | | | | |
Trust and Investments | | | 4,232 | | | | 4,254 | | | | 4,312 | | | | 4,219 | | | | 3,992 | |
Mortgage banking | | | 4,197 | | | | 3,685 | | | | 2,915 | | | | 2,663 | | | | 3,032 | |
Capital markets products | | | 6,744 | | | | 5,832 | | | | 6,033 | | | | 7,349 | | | | 5,471 | |
Treasury management | | | 5,606 | | | | 5,490 | | | | 5,260 | | | | 5,154 | | | | 4,813 | |
Loan and credit-related fees | | | 6,902 | | | | 7,479 | | | | 6,372 | | | | 6,527 | | | | 5,606 | |
Deposit service charges and fees and other income | | | 1,582 | | | | 1,308 | | | | 1,644 | | | | 1,487 | | | | 2,115 | |
Net securities (losses) gains | | | 191 | | | | (211 | ) | | | (290 | ) | | | 105 | | | | 364 | |
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Total non-interest income | | | 29,454 | | | | 27,837 | | | | 26,246 | | | | 27,504 | | | | 25,393 | |
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Non-interest Expense | | | | | | | | | | | | | | | | | | | | |
Salaries and employee benefits | | | 45,253 | | | | 44,820 | | | | 42,177 | | | | 42,698 | | | | 40,729 | |
Net occupancy expense | | | 7,762 | | | | 7,477 | | | | 7,653 | | | | 7,679 | | | | 7,394 | |
Technology and related costs | | | 3,249 | | | | 3,432 | | | | 3,273 | | | | 3,296 | | | | 3,142 | |
Marketing | | | 2,448 | | | | 2,645 | | | | 3,058 | | | | 2,160 | | | | 2,250 | |
Professional services | | | 1,998 | | | | 2,151 | | | | 2,247 | | | | 1,957 | | | | 2,126 | |
Outsourced servicing costs | | | 1,814 | | | | 1,802 | | | | 2,093 | | | | 1,710 | | | | 2,077 | |
Net foreclosed property expenses | | | 9,571 | | | | 8,596 | | | | 11,894 | | | | 8,235 | | | | 6,862 | |
Postage, telephone, and delivery | | | 909 | | | | 837 | | | | 882 | | | | 869 | | | | 953 | |
Insurance | | | 3,290 | | | | 3,352 | | | | 4,239 | | | | 4,305 | | | | 3,462 | |
Loan and collection expense | | | 2,227 | | | | 3,329 | | | | 2,918 | | | | 3,157 | | | | 3,840 | |
Other expenses | | | 2,794 | | | | 3,289 | | | | 3,424 | | | | 4,163 | | | | 3,395 | |
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Total non-interest expense | | | 81,315 | | | | 81,730 | | | | 83,858 | | | | 80,229 | | | | 76,230 | |
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Income before income taxes | | | 39,765 | | | | 38,006 | | | | 30,696 | | | | 23,950 | | | | 20,534 | |
Income tax provision | | | 16,682 | | | | 14,952 | | | | 13,192 | | | | 9,695 | | | | 9,468 | |
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Net income | | | 23,083 | | | | 23,054 | | | | 17,504 | | | | 14,255 | | | | 11,066 | |
Net income attributable to noncontrolling interests | | | — | | | | — | | | | — | | | | — | | | | 7 | |
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Net income attributable to controlling interests | | | 23,083 | | | | 23,054 | | | | 17,504 | | | | 14,255 | | | | 11,059 | |
Preferred stock dividends and discount accretion | | | 3,043 | | | | 3,447 | | | | 3,442 | | | | 3,436 | | | | 3,430 | |
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Net income available to common stockholders | | $ | 20,040 | | | $ | 19,607 | | | $ | 14,062 | | | $ | 10,819 | | | $ | 7,629 | |
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Per Common Share Data | | | | | | | | | | | | | | | | | | | | |
Basic earnings per share | | $ | 0.26 | | | $ | 0.27 | | | $ | 0.19 | | | $ | 0.15 | | | $ | 0.11 | |
Diluted earnings per share | | $ | 0.26 | | | $ | 0.27 | | | $ | 0.19 | | | $ | 0.15 | | | $ | 0.11 | |
Cash dividends declared | | $ | 0.01 | | | $ | 0.01 | | | $ | 0.01 | | | $ | 0.01 | | | $ | 0.01 | |
Weighted-average common shares outstanding | | | 75,035 | | | | 71,010 | | | | 70,956 | | | | 70,780 | | | | 70,540 | |
Weighted-average diluted common shares outstanding | | | 75,374 | | | | 71,274 | | | | 71,147 | | | | 70,932 | | | | 70,713 | |
Note: Certain reclassifications have been made to prior period financial statements to place them on a basis comparable with the current period financial statements.
| | |
Consolidated Balance Sheets (Dollars in thousands) | | ![LOGO](https://capedge.com/proxy/8-K/0001193125-13-018244/g470742privatebancorp.jpg) |
| | | | | | | | | | | | | | | | | | | | |
| | 12/31/12 | | | 09/30/12 | | | 06/30/12 | | | 03/31/12 | | | 12/31/11 | |
| | unaudited | | | unaudited | | | unaudited | | | unaudited | | | audited | |
Assets | | | | | | | | | | | | | | | | | | | | |
Cash and due from banks | | $ | 234,308 | | | $ | 143,573 | | | $ | 141,563 | | | $ | 166,062 | | | $ | 156,131 | |
Fed funds sold and other short-term investments | | | 707,143 | | | | 470,984 | | | | 315,378 | | | | 193,571 | | | | 205,610 | |
Loans held for sale | | | 49,696 | | | | 49,209 | | | | 35,342 | | | | 29,185 | | | | 32,049 | |
Securities available-for-sale, at fair value | | | 1,451,160 | | | | 1,550,516 | | | | 1,625,649 | | | | 1,705,649 | | | | 1,783,465 | |
Securities held-to-maturity, at amortized cost | | | 863,727 | | | | 784,930 | | | | 693,277 | | | | 598,066 | | | | 490,143 | |
FHLB stock | | | 43,387 | | | | 43,387 | | | | 43,467 | | | | 40,695 | | | | 40,695 | |
Loans - excluding covered assets, net of unearned fees | | | 10,139,982 | | | | 9,625,421 | | | | 9,436,235 | | | | 9,222,253 | | | | 9,008,561 | |
Allowance for loan losses | | | (161,417 | ) | | | (166,859 | ) | | | (174,302 | ) | | | (183,844 | ) | | | (191,594 | ) |
| | | | | | | | | | | | | | | | | | | | |
Loans, net of allowance for loan losses and unearned fees | | | 9,978,565 | | | | 9,458,562 | | | | 9,261,933 | | | | 9,038,409 | | | | 8,816,967 | |
| | | | | | | | | | | | | | | | | | | | |
Covered assets | | | 194,216 | | | | 208,979 | | | | 244,782 | | | | 276,534 | | | | 306,807 | |
Allowance for covered loan losses | | | (24,011 | ) | | | (21,500 | ) | | | (21,733 | ) | | | (26,323 | ) | | | (25,939 | ) |
| | | | | | | | | | | | | | | | | | | | |
Covered assets, net of allowance for covered loan losses | | | 170,205 | | | | 187,479 | | | | 223,049 | | | | 250,211 | | | | 280,868 | |
| | | | | | | | | | | | | | | | | | | | |
Other real estate owned, excluding covered assets | | | 81,880 | | | | 97,833 | | | | 109,836 | | | | 123,498 | | | | 125,729 | |
Premises, furniture, and equipment, net | | | 39,508 | | | | 40,526 | | | | 38,177 | | | | 37,462 | | | | 38,633 | |
Accrued interest receivable | | | 34,832 | | | | 36,892 | | | | 37,089 | | | | 36,033 | | | | 35,732 | |
Investment in bank owned life insurance | | | 52,513 | | | | 52,134 | | | | 51,751 | | | | 51,356 | | | | 50,966 | |
Goodwill | | | 94,521 | | | | 94,534 | | | | 94,546 | | | | 94,559 | | | | 94,571 | |
Other intangible assets | | | 12,828 | | | | 13,500 | | | | 14,152 | | | | 14,683 | | | | 15,353 | |
Capital markets derivative assets | | | 90,405 | | | | 104,697 | | | | 102,613 | | | | 97,805 | | | | 101,676 | |
Other assets | | | 152,837 | | | | 149,798 | | | | 154,354 | | | | 145,920 | | | | 148,282 | |
| | | | | | | | | | | | | | | | | | | | |
Total assets | | $ | 14,057,515 | | | $ | 13,278,554 | | | $ | 12,942,176 | | | $ | 12,623,164 | | | $ | 12,416,870 | |
| | | | | | | | | | | | | | | | | | | | |
| | | | | |
Liabilities | | | | | | | | | | | | | | | | | | | | |
Demand deposits: | | | | | | | | | | | | | | | | | | | | |
Noninterest-bearing | | $ | 3,690,340 | | | $ | 3,295,568 | | | $ | 2,920,182 | | | $ | 3,054,536 | | | $ | 3,244,307 | |
Interest-bearing | | | 1,057,390 | | | | 893,194 | | | | 785,879 | | | | 714,522 | | | | 595,238 | |
Savings deposits and money market accounts | | | 4,912,820 | | | | 4,381,595 | | | | 4,146,022 | | | | 4,347,832 | | | | 4,378,220 | |
Brokered time deposits | | | 993,455 | | | | 1,290,796 | | | | 1,484,435 | | | | 961,481 | | | | 815,951 | |
Time deposits | | | 1,519,629 | | | | 1,498,287 | | | | 1,398,012 | | | | 1,344,341 | | | | 1,359,138 | |
| | | | | | | | | | | | | | | | | | | | |
Total deposits | | | 12,173,634 | | | | 11,359,440 | | | | 10,734,530 | | | | 10,422,712 | | | | 10,392,854 | |
Short-term borrowings | | | 5,000 | | | | 5,000 | | | | 335,000 | | | | 355,000 | | | | 156,000 | |
Long-term debt | | | 499,793 | | | | 374,793 | | | | 374,793 | | | | 379,793 | | | | 379,793 | |
Accrued interest payable | | | 7,141 | | | | 5,287 | | | | 5,855 | | | | 5,425 | | | | 5,567 | |
Capital markets derivative liabilities | | | 93,029 | | | | 108,094 | | | | 105,773 | | | | 100,109 | | | | 104,140 | |
Other liabilities | | | 71,752 | | | | 62,500 | | | | 52,071 | | | | 47,971 | | | | 81,764 | |
| | | | | | | | | | | | | | | | | | | | |
Total liabilities | | | 12,850,349 | | | | 11,915,114 | | | | 11,608,022 | | | | 11,311,010 | | | | 11,120,118 | |
| | | | | | | | | | | | | | | | | | | | |
| | | | | |
Equity | | | | | | | | | | | | | | | | | | | | |
Preferred stock | | | — | | | | 241,585 | | | | 241,185 | | | | 240,791 | | | | 240,403 | |
Common stock | | | 77,015 | | | | 71,884 | | | | 71,843 | | | | 71,611 | | | | 71,483 | |
Treasury stock | | | (24,150 | ) | | | (22,736 | ) | | | (22,639 | ) | | | (21,749 | ) | | | (21,454 | ) |
Additional paid-in capital | | | 1,053,821 | | | | 983,739 | | | | 978,510 | | | | 973,417 | | | | 968,787 | |
Retained earnings/(accumulated deficit) | | | 52,416 | | | | 33,150 | | | | 14,268 | | | | 932 | | | | (9,164 | ) |
Accumulated other comprehensive income, net of tax | | | 48,064 | | | | 55,818 | | | | 50,987 | | | | 47,152 | | | | 46,697 | |
| | | | | | | | | | | | | | | | | | | | |
Total equity | | | 1,207,166 | | | | 1,363,440 | | | | 1,334,154 | | | | 1,312,154 | | | | 1,296,752 | |
| | | | | | | | | | | | | | | | | | | | |
Total liabilities and equity | | $ | 14,057,515 | | | $ | 13,278,554 | | | $ | 12,942,176 | | | $ | 12,623,164 | | | $ | 12,416,870 | |
| | | | | | | | | | | | | | | | | | | | |
Note: Certain reclassifications have been made to prior period financial statements to place them on a basis comparable with the current period financial statements.
| | |
Selected Financial Data Unaudited (Amounts in thousands except per share data) | | ![LOGO](https://capedge.com/proxy/8-K/0001193125-13-018244/g470742privatebancorp.jpg) |
| | | | | | | | | | | | | | | | | | | | |
| | 4Q12 | | | 3Q12 | | | 2Q12 | | | 1Q12 | | | 4Q11 | |
Selected Statement of Income Data: | | | | | | | | | | | | | | | | | | | | |
Net interest income | | $ | 104,803 | | | $ | 105,408 | | | $ | 105,346 | | | $ | 104,376 | | | $ | 102,982 | |
Net revenue(1) (2) | | $ | 135,022 | | | $ | 133,974 | | | $ | 132,291 | | | $ | 132,560 | | | $ | 129,046 | |
Operating profit(1) (2) | | $ | 53,707 | | | $ | 52,244 | | | $ | 48,433 | | | $ | 52,331 | | | $ | 52,816 | |
Provision for loan and covered loan losses | | $ | 13,177 | | | $ | 13,509 | | | $ | 17,038 | | | $ | 27,701 | | | $ | 31,611 | |
Income before taxes | | $ | 39,765 | | | $ | 38,006 | | | $ | 30,696 | | | $ | 23,950 | | | $ | 20,534 | |
Net income available to common stockholders | | $ | 20,040 | | | $ | 19,607 | | | $ | 14,062 | | | $ | 10,819 | | | $ | 7,629 | |
| | | | | |
Per Common Share Data: | | | | | | | | | | | | | | | | | | | | |
Basic earnings per share | | $ | 0.26 | | | $ | 0.27 | | | $ | 0.19 | | | $ | 0.15 | | | $ | 0.11 | |
Diluted earnings per share | | $ | 0.26 | | | $ | 0.27 | | | $ | 0.19 | | | $ | 0.15 | | | $ | 0.11 | |
Dividends declared | | $ | 0.01 | | | $ | 0.01 | | | $ | 0.01 | | | $ | 0.01 | | | $ | 0.01 | |
Book value (period end)(1) | | $ | 15.65 | | | $ | 15.49 | | | $ | 15.09 | | | $ | 14.79 | | | $ | 14.72 | |
Tangible book value (period end)(1) (2) | | $ | 14.26 | | | $ | 14.00 | | | $ | 13.59 | | | $ | 13.29 | | | $ | 13.19 | |
Market value (close) | | $ | 15.32 | | | $ | 15.99 | | | $ | 14.76 | | | $ | 15.17 | | | $ | 10.98 | |
Book value multiple | | | 0.98x | | | | 1.03x | | | | 0.98x | | | | 1.03x | | | | 0.75x | |
| | | | | |
Share Data: | | | | | | | | | | | | | | | | | | | | |
Weighted-average common shares outstanding | | | 75,035 | | | | 71,010 | | | | 70,956 | | | | 70,780 | | | | 70,540 | |
Weighted-average diluted common shares outstanding | | | 75,374 | | | | 71,274 | | | | 71,147 | | | | 70,932 | | | | 70,713 | |
Common shares issued (at period end) | | | 78,062 | | | | 73,291 | | | | 73,273 | | | | 73,205 | | | | 72,514 | |
Common shares outstanding (at period end) | | | 77,115 | | | | 72,436 | | | | 72,424 | | | | 72,415 | | | | 71,745 | |
| | | | | |
Performance Ratios: | | | | | | | | | | | | | | | | | | | | |
Return on average assets | | | 0.67 | % | | | 0.70 | % | | | 0.55 | % | | | 0.46 | % | | | 0.36 | % |
Return on average common equity | | | 6.64 | % | | | 7.00 | % | | | 5.18 | % | | | 4.05 | % | | | 2.86 | % |
Net interest margin(1) (2) | | | 3.16 | % | | | 3.35 | % | | | 3.46 | % | | | 3.53 | % | | | 3.48 | % |
Fee revenue as a percent of total revenue(1) | | | 21.83 | % | | | 21.02 | % | | | 20.12 | % | | | 20.79 | % | | | 19.55 | % |
Non-interest income to average assets | | | 0.85 | % | | | 0.85 | % | | | 0.83 | % | | | 0.89 | % | | | 0.82 | % |
Non-interest expense to average assets | | | 2.35 | % | | | 2.49 | % | | | 2.64 | % | | | 2.59 | % | | | 2.45 | % |
Net overhead ratio(1) | | | 1.50 | % | | | 1.64 | % | | | 1.81 | % | | | 1.70 | % | | | 1.64 | % |
Efficiency ratio(1) (2) | | | 60.22 | % | | | 61.00 | % | | | 63.39 | % | | | 60.52 | % | | | 59.07 | % |
| | | | | |
Selected Information: | | | | | | | | | | | | | | | | | | | | |
Assets under management and administration (AUMA) (1) | | $ | 5,196,094 | | | $ | 5,007,235 | | | $ | 4,738,973 | | | $ | 4,879,947 | | | $ | 4,303,547 | |
Custody assets included in AUMA | | $ | 2,345,410 | | | $ | 2,192,530 | | | $ | 2,073,777 | | | $ | 2,060,455 | | | $ | 1,599,528 | |
Credit valuation adjustment on capital markets derivatives (1) | | $ | 854 | | | $ | 5 | | | $ | (830 | ) | | $ | 19 | | | $ | 244 | |
| | | | | |
Balance Sheet Ratios: | | | | | | | | | | | | | | | | | | | | |
Loans to deposits (period end)(3) | | | 83.29 | % | | | 84.73 | % | | | 87.91 | % | | | 88.48 | % | | | 86.68 | % |
Average interest-earning assets to average interest-bearing liabilities | | | 150.03 | % | | | 147.76 | % | | | 146.44 | % | | | 149.68 | % | | | 150.70 | % |
| | | | | |
Capital Ratios (period end): | | | | | | | | | | | | | | | | | | | | |
Total risk-based capital(1) | | | 13.13 | % | | | 13.90 | % | | | 14.12 | % | | | 14.20 | % | | | 14.28 | % |
Tier 1 risk-based capital(1) | | | 10.48 | % | | | 12.24 | % | | | 12.25 | % | | | 12.31 | % | | | 12.38 | % |
Tier 1 leverage ratio(1) | | | 9.50 | % | | | 11.15 | % | | | 11.20 | % | | | 11.35 | % | | | 11.33 | % |
Tier 1 common equity to risk-weighted assets(1) (2) | | | 8.50 | % | | | 8.12 | % | | | 8.05 | % | | | 8.04 | % | | | 8.04 | % |
Tangible common equity to tangible assets(1) (2) | | | 7.88 | % | | | 7.70 | % | | | 7.67 | % | | | 7.69 | % | | | 7.69 | % |
Total equity to total assets | | | 8.59 | % | | | 10.27 | % | | | 10.31 | % | | | 10.39 | % | | | 10.44 | % |
(1) | Refer to Glossary of Terms for definition. |
(2) | This is a non-U.S. GAAP financial measure. Refer to Non-U.S. GAAP Financial Measures for a reconciliation from non-U.S. GAAP to U.S. GAAP. |
(3) | Excludes covered assets. Refer to Glossary of Terms for definition. |
| | |
Loan Composition (excluding covered assets(1)) (Dollars in thousands) | | ![LOGO](https://capedge.com/proxy/8-K/0001193125-13-018244/g470742privatebancorp.jpg) |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | 12/31/12 | | | % of Total | | | 09/30/12 | | | % of Total | | | 06/30/12 | | | % of Total | | | 03/31/12 | | | % of Total | | | 12/31/11 | | | % of Total | |
| | unaudited | | | | | | unaudited | | | | | | unaudited | | | | | | unaudited | | | | | | audited | | | | |
Commercial and industrial | | $ | 4,901,210 | | | | 48 | % | | $ | 4,666,375 | | | | 48 | % | | $ | 4,523,780 | | | | 48 | % | | $ | 4,325,558 | | | | 47 | % | | $ | 4,192,842 | | | | 46 | % |
Commercial - owner-occupied CRE | | | 1,595,574 | | | | 16 | % | | | 1,437,935 | | | | 15 | % | | | 1,384,831 | | | | 15 | % | | | 1,175,729 | | | | 13 | % | | | 1,130,932 | | | | 13 | % |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Total commercial | | | 6,496,784 | | | | 64 | % | | | 6,104,310 | | | | 63 | % | | | 5,908,611 | | | | 63 | % | | | 5,501,287 | | | | 60 | % | | | 5,323,774 | | | | 59 | % |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Commercial real estate | | | 2,129,238 | | | | 21 | % | | | 2,069,423 | | | | 21 | % | | | 2,124,492 | | | | 23 | % | | | 2,378,640 | | | | 26 | % | | | 2,233,851 | | | | 25 | % |
Commercial real estate - multi-family | | | 546,447 | | | | 5 | % | | | 544,775 | | | | 6 | % | | | 499,250 | | | | 5 | % | | | 493,218 | | | | 5 | % | | | 452,595 | | | | 5 | % |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Total commercial real estate | | | 2,675,685 | | | | 26 | % | | | 2,614,198 | | | | 27 | % | | | 2,623,742 | | | | 28 | % | | | 2,871,858 | | | | 31 | % | | | 2,686,446 | | | | 30 | % |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Construction | | | 190,496 | | | | 2 | % | | | 162,724 | | | | 2 | % | | | 171,014 | | | | 2 | % | | | 127,837 | | | | 1 | % | | | 287,002 | | | | 3 | % |
Residential real estate | | | 373,580 | | | | 4 | % | | | 360,094 | | | | 4 | % | | | 330,254 | | | | 3 | % | | | 308,880 | | | | 3 | % | | | 297,229 | | | | 3 | % |
Home equity | | | 167,760 | | | | 2 | % | | | 170,068 | | | | 2 | % | | | 174,131 | | | | 2 | % | | | 175,972 | | | | 2 | % | | | 181,158 | | | | 2 | % |
Personal | | | 235,677 | | | | 2 | % | | | 214,027 | | | | 2 | % | | | 228,483 | | | | 2 | % | | | 236,419 | | | | 3 | % | | | 232,952 | | | | 3 | % |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Total loans | | $ | 10,139,982 | | | | 100 | % | | $ | 9,625,421 | | | | 100 | % | | $ | 9,436,235 | | | | 100 | % | | $ | 9,222,253 | | | | 100 | % | | $ | 9,008,561 | | | | 100 | % |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
![LOGO](https://capedge.com/proxy/8-K/0001193125-13-018244/g470742ex99s_5.jpg)
(1) | Refer to Glossary of Terms for definition. |
| | |
Loan Composition (excluding covered assets(1)) (Dollars in thousands) Unaudited | | ![LOGO](https://capedge.com/proxy/8-K/0001193125-13-018244/g470742privatebancorp.jpg) |
Commercial Loans Composition by Industry Segment
(Classified pursuant to the North American Industrial Classification System standard industry descriptions and represents our client’s primary business activity)
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | 12/31/12 | | | 09/30/12 | | | 12/31/11 | |
| | Amount | | | % of Total | | | Amount Non- performing | | | % Non- performing (2) | | | Amount | | | % of Total | | | Amount Non- performing | | | % Non- performing (2) | | | Amount | | | % of Total | |
Manufacturing | | $ | 1,496,719 | | | | 23 | % | | $ | — | | | | — | | | $ | 1,361,831 | | | | 22 | % | | $ | — | | | | — | | | $ | 1,257,973 | | | | 24 | % |
Healthcare | | | 1,514,496 | | | | 23 | % | | | 322 | | | | * | | | | 1,346,520 | | | | 22 | % | | | — | | | | — | | | | 1,218,205 | | | | 23 | % |
Wholesale trade | | | 635,477 | | | | 10 | % | | | — | | | | — | | | | 641,077 | | | | 10 | % | | | 1,829 | | | | * | | | | 482,386 | | | | 9 | % |
Finance and insurance | | | 584,763 | | | | 9 | % | | | 194 | | | | * | | | | 489,261 | | | | 8 | % | | | 201 | | | | * | | | | 454,830 | | | | 8 | % |
Real estate, rental and leasing | | | 359,947 | | | | 6 | % | | | 16,550 | | | | 5 | % | | | 349,763 | | | | 6 | % | | | 16,327 | | | | 5 | % | | | 342,860 | | | | 6 | % |
Professional, scientific and technical services | | | 391,976 | | | | 6 | % | | | 10,805 | | | | 3 | % | | | 408,461 | | | | 7 | % | | | 38,673 | | | | 9 | % | | | 350,677 | | | | 7 | % |
Administrative, support, waste management and remediation services | | | 426,960 | | | | 7 | % | | | — | | | | — | | | | 411,977 | | | | 7 | % | | | — | | | | — | | | | 321,912 | | | | 6 | % |
Architectural, engineering and construction | | | 225,199 | | | | 3 | % | | | 629 | | | | * | | | | 262,524 | | | | 4 | % | | | 1,318 | | | | 1 | % | | | 195,875 | | | | 4 | % |
All other (3) | | | 861,247 | | | | 13 | % | | | 13,413 | | | | 2 | % | | | 832,896 | | | | 14 | % | | | 2,834 | | | | * | | | | 699,056 | | | | 13 | % |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Total commercial (4) | | $ | 6,496,784 | | | | 100 | % | | $ | 41,913 | | | | 1 | % | | $ | 6,104,310 | | | | 100 | % | | $ | 61,182 | | | | 1 | % | | $ | 5,323,774 | | | | 100 | % |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
|
Commercial Real Estate and Construction Loans Portfolio by Collateral Type | |
| | 12/31/12 | | | 09/30/12 | | | 12/31/11 | |
| | Amount Outstanding | | | % of Total | | | Amount Non- performing | | | % Non- performing (2) | | | Amount Outstanding | | | % of Total | | | Amount Non- performing | | | % Non- performing (2) | | | Amount Outstanding | | | % of Total | |
Commercial Real Estate Portfolio | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Land | | $ | 240,503 | | | | 9 | % | | $ | 19,747 | | | | 8 | % | | $ | 244,306 | | | | 9 | % | | $ | 19,664 | | | | 8 | % | | $ | 230,579 | | | | 9 | % |
Residential 1-4 family | | | 58,704 | | | | 2 | % | | | 13,213 | | | | 23 | % | | | 58,410 | | | | 2 | % | | | 12,523 | | | | 21 | % | | | 105,919 | | | | 4 | % |
Multi-family | | | 543,622 | | | | 20 | % | | | 6,553 | | | | 1 | % | | | 544,775 | | | | 21 | % | | | 8,619 | | | | 2 | % | | | 452,595 | | | | 17 | % |
Industrial/warehouse | | | 272,535 | | | | 10 | % | | | 8,902 | | | | 3 | % | | | 317,593 | | | | 12 | % | | | 10,390 | | | | 3 | % | | | 350,282 | | | | 13 | % |
Office | | | 566,834 | | | | 21 | % | | | 5,849 | | | | 1 | % | | | 564,724 | | | | 22 | % | | | 7,056 | | | | 1 | % | | | 585,183 | | | | 22 | % |
Retail | | | 472,024 | | | | 18 | % | | | 8,873 | | | | 2 | % | | | 424,683 | | | | 16 | % | | | 24,467 | | | | 6 | % | | | 431,200 | | | | 16 | % |
Healthcare | | | 205,318 | | | | 8 | % | | | — | | | | — | | | | 164,974 | | | | 6 | % | | | — | | | | — | | | | 144,529 | | | | 5 | % |
Mixed use/other | | | 316,145 | | | | 12 | % | | | 5,417 | | | | 2 | % | | | 294,733 | | | | 12 | % | | | 5,338 | | | | 2 | % | | | 386,159 | | | | 14 | % |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Total commercial real estate | | $ | 2,675,685 | | | | 100 | % | | $ | 68,554 | | | | 3 | % | | $ | 2,614,198 | | | | 100 | % | | $ | 88,057 | | | | 3 | % | | $ | 2,686,446 | | | | 100 | % |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | |
Construction Portfolio (5) | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Land | | $ | — | | | | — | | | $ | — | | | | — | | | $ | — | | | | — | | | $ | — | | | | — | | | $ | — | | | | — | |
Residential 1-4 family | | | 14,160 | | | | 7 | % | | | — | | | | — | | | | 13,269 | | | | 8 | % | | | — | | | | — | | | | 32,903 | | | | 11 | % |
Multi-family | | | 36,129 | | | | 19 | % | | | — | | | | — | | | | 24,388 | | | | 15 | % | | | — | | | | — | | | | 64,892 | | | | 23 | % |
Industrial/warehouse | | | 29,633 | | | | 16 | % | | | — | | | | — | | | | 21,573 | | | | 13 | % | | | — | | | | — | | | | 18,911 | | | | 7 | % |
Office | | | 8,863 | | | | 5 | % | | | 402 | | | | 5 | % | | | 34,957 | | | | 21 | % | | | 402 | | | | 1 | % | | | 43,403 | | | | 15 | % |
Retail | | | 37,457 | | | | 20 | % | | | — | | | | — | | | | 33,719 | | | | 21 | % | | | — | | | | — | | | | 69,990 | | | | 24 | % |
Healthcare | | | 14,196 | | | | 7 | % | | | — | | | | — | | | | 8,025 | | | | 5 | % | | | | | | | | | | | 7,338 | | | | 3 | % |
Mixed use/other | | | 50,058 | | | | 26 | % | | | 155 | | | | * | | | | 26,793 | | | | 17 | % | | | 155 | | | | 1 | % | | | 49,565 | | | | 17 | % |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Total construction | | $ | 190,496 | | | | 100 | % | | $ | 557 | | | | * | | | $ | 162,724 | | | | 100 | % | | $ | 557 | | | | * | | | $ | 287,002 | | | | 100 | % |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
![LOGO](https://capedge.com/proxy/8-K/0001193125-13-018244/g470742ex99s_6.jpg)
(1) | Refer to Glossary of Terms for definition. |
(2) | Calculated as nonperforming loans in the respective collateral type divided by total loans of the corresponding collateral type presented above. |
(3) | All other consists of numerous smaller balances across a variety of industries with no category greater than 3%. |
(4) | Includes loans secured by owner-occupied commercial real estate of $1.6 billion, $1.4 billion and $1.1 billion at December 31, 2012, September 30, 2012 and December 31, 2011, respectively. |
(5) | Certain reclassifications have been made to prior period financial statements to place them on a basis comparable with the current period financial statements. |
| | |
Asset Quality (excluding covered assets(1)) Unaudited (Dollars in thousands) | | ![LOGO](https://capedge.com/proxy/8-K/0001193125-13-018244/g470742privatebancorp.jpg) |
| | | | | | | | | | | | | | | | | | | | |
| | 4Q12 | | | 3Q12 | | | 2Q12 | | | 1Q12 | | | 4Q11 | |
Credit Quality Key Ratios | | | | | | | | | | | | | | | | | | | | |
Net charge-offs (annualized) to average loans | | | 0.73 | % | | | 0.87 | % | | | 1.16 | % | | | 1.57 | % | | | 1.72 | % |
Nonperforming loans to total loans | | | 1.37 | % | | | 1.87 | % | | | 2.22 | % | | | 2.53 | % | | | 2.88 | % |
Nonperforming loans to total assets | | | 0.99 | % | | | 1.35 | % | | | 1.62 | % | | | 1.85 | % | | | 2.09 | % |
Nonperforming assets to total assets | | | 1.57 | % | | | 2.09 | % | | | 2.47 | % | | | 2.83 | % | | | 3.11 | % |
Allowance for loan losses to: | | | | | | | | | | | | | | | | | | | | |
Total loans | | | 1.59 | % | | | 1.73 | % | | | 1.85 | % | | | 1.99 | % | | | 2.13 | % |
Nonperforming loans | | | 116 | % | | | 93 | % | | | 83 | % | | | 79 | % | | | 74 | % |
| | | | | |
Nonperforming assets | | | | | | | | | | | | | | | | | | | | |
Loans past due 90 days and accruing | | $ | — | | | $ | — | | | $ | — | | | $ | — | | | $ | — | |
Nonaccrual loans | | | 138,780 | | | | 179,895 | | | | 209,339 | | | | 233,222 | | | | 259,852 | |
OREO | | | 81,880 | | | | 97,833 | | | | 109,836 | | | | 123,498 | | | | 125,729 | |
| | | | | | | | | | | | | | | | | | | | |
Total nonperforming assets | | $ | 220,660 | | | $ | 277,728 | | | $ | 319,175 | | | $ | 356,720 | | | $ | 385,581 | |
| | | | | | | | | | | | | | | | | | | | |
| | | | | |
Restructured loans accruing interest | | $ | 60,980 | | | $ | 58,431 | | | $ | 97,690 | | | $ | 136,521 | | | $ | 100,909 | |
| | | | | |
Special mention loans | | $ | 96,794 | | | $ | 104,706 | | | $ | 108,052 | | | $ | 143,790 | | | $ | 204,965 | |
Potential problem loans | | $ | 107,876 | | | $ | 112,929 | | | $ | 164,077 | | | $ | 184,029 | | | $ | 177,095 | |
| |
| | | | | |
Nonperforming Loans Rollforward | | | | | | | | | | | | | | | | | | | | |
Beginning balance | | $ | 179,895 | | | $ | 209,339 | | | $ | 233,222 | | | $ | 259,852 | | | $ | 304,747 | |
Additions: | | | | | | | | | | | | | | | | | | | | |
New nonaccrual loans | | | 28,527 | | | | 38,948 | | | | 57,717 | | | | 69,581 | | | | 67,512 | |
Reductions: | | | | | | | | | | | | | | | | | | | | |
Return to performing status | | | (3,824 | ) | | | (236 | ) | | | (1,953 | ) | | | (14,291 | ) | | | (2,072 | ) |
Paydowns and payoffs, net of advances | | | (21,454 | ) | | | (11,094 | ) | | | (9,961 | ) | | | (4,806 | ) | | | (8,950 | ) |
Net sales | | | (20,544 | ) | | | (21,351 | ) | | | (25,954 | ) | | | (27,479 | ) | | | (27,178 | ) |
Transfer to OREO | | | (2,826 | ) | | | (3,250 | ) | | | (9,968 | ) | | | (13,513 | ) | | | (33,695 | ) |
Transfer to loans held for sale | | | — | | | | (9,200 | ) | | | — | | | | — | | | | — | |
Charge-offs | | | (20,994 | ) | | | (23,261 | ) | | | (33,764 | ) | | | (36,122 | ) | | | (40,512 | ) |
| | | | | | | | | | | | | | | | | | | | |
Total reductions | | | (69,642 | ) | | | (68,392 | ) | | | (81,600 | ) | | | (96,211 | ) | | | (112,407 | ) |
| | | | | | | | | | | | | | | | | | | | |
Balance at end of period | | $ | 138,780 | | | $ | 179,895 | | | $ | 209,339 | | | $ | 233,222 | | | $ | 259,852 | |
| | | | | | | | | | | | | | | | | | | | |
| |
| | | | | |
OREO Rollforward | | | | | | | | | | | | | | | | | | | | |
Beginning balance | | $ | 97,833 | | | $ | 109,836 | | | $ | 123,498 | | | $ | 125,729 | | | $ | 116,364 | |
New foreclosed properties | | | 2,826 | | | | 3,250 | | | | 9,968 | | | | 13,513 | | | | 33,695 | |
Valuation adjustments | | | (5,274 | ) | | | (6,245 | ) | | | (9,207 | ) | | | (4,522 | ) | | | (3,999 | ) |
Disposals: | | | | | | | | | | | | | | | | | | | | |
Sales proceeds | | | (11,526 | ) | | | (8,041 | ) | | | (13,517 | ) | | | (9,078 | ) | | | (18,085 | ) |
Net loss on sale | | | (1,979 | ) | | | (967 | ) | | | (906 | ) | | | (2,144 | ) | | | (2,246 | ) |
| | | | | | | | | | | | | | | | | | | | |
Balance at end of period | | $ | 81,880 | | | $ | 97,833 | | | $ | 109,836 | | | $ | 123,498 | | | $ | 125,729 | |
| | | | | | | | | | | | | | | | | | | | |
| |
| | | | | |
Restructured Loans Accruing Interest Rollforward | | | | | | | | | | | | | | | | | | | | |
Beginning balance | | $ | 58,431 | | | $ | 97,690 | | | $ | 136,521 | | | $ | 100,909 | | | $ | 106,330 | |
Additions: | | | | | | | | | | | | | | | | | | | | |
New restructured loans accruing interest | | | 6,552 | | | | 2,001 | | | | 1,864 | | | | 47,673 | | | | 8,803 | |
Restructured loans returned to accruing status | | | 3,823 | | | | — | | | | 157 | | | | — | | | | 1,099 | |
Reductions: | | | | | | | | | | | | | | | | | | | | |
Paydowns and payoffs, net of advances | | | (3,995 | ) | | | (3,935 | ) | | | (14,593 | ) | | | (4,661 | ) | | | (3,334 | ) |
Transferred to nonperforming loans | | | (2,988 | ) | | | (15,464 | ) | | | (25,688 | ) | | | (6,665 | ) | | | (5,735 | ) |
Net sales | | | — | | | | — | | | | (170 | ) | | | — | | | | — | |
Removal of restructured loan status | | | (843 | ) | | | (21,861 | ) | | | (401 | ) | | | (735 | ) | | | (6,254 | ) |
Charge-offs, net | | | — | | | | — | | | | — | | | | — | | | | — | |
| | | | | | | | | | | | | | | | | | | | |
Balance at end of period | | $ | 60,980 | | | $ | 58,431 | | | $ | 97,690 | | | $ | 136,521 | | | $ | 100,909 | |
| | | | | | | | | | | | | | | | | | | | |
(1) | Refer to Glossary of Terms for definition. |
| | |
Asset Quality (excluding covered assets(1)) Unaudited (Dollars in thousands) | | ![LOGO](https://capedge.com/proxy/8-K/0001193125-13-018244/g470742privatebancorp.jpg) |
Credit Quality Indicators(1)
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | Special Mention Loans | | | % of Portfolio Loan Type | | | Potential Problem Loans | | | % of Portfolio Loan Type | | | Non- Performing Loans | | | % of Portfolio Loan Type | | | Total Loans | |
As of December 31, 2012 | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Transformational(1) | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Commercial | | $ | 71,706 | | | | 1.2 | % | | $ | 34,745 | | | | 0.6 | % | | $ | 23,620 | | | | 0.4 | % | | $ | 6,067,220 | |
Commercial real estate | | | 6,310 | | | | 0.3 | % | | | 6,836 | | | | 0.4 | % | | | 25,344 | | | | 1.3 | % | | | 1,937,913 | |
Construction | | | — | | | | — | | | | — | | | | — | | | | — | | | | — | | | | 187,819 | |
Residential real estate | | | — | | | | — | | | | 3,532 | | | | 1.4 | % | | | 1,655 | | | | 0.7 | % | | | 249,569 | |
Home equity | | | 136 | | | | 0.2 | % | | | 1,490 | | | | 2.0 | % | | | 876 | | | | 1.2 | % | | | 75,619 | |
Personal | | | — | | | | — | | | | 47 | | | | * | | | | 539 | | | | 0.3 | % | | | 184,953 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Total transformational | | $ | 78,152 | | | | 0.9 | % | | $ | 46,650 | | | | 0.5 | % | | $ | 52,034 | | | | 0.6 | % | | $ | 8,703,093 | |
Legacy(1) | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Commercial | | $ | 945 | | | | 0.2 | % | | $ | 5,750 | | | | 1.3 | % | | $ | 18,293 | | | | 4.3 | % | | $ | 429,564 | |
Commercial real estate | | | 14,899 | | | | 2.0 | % | | | 42,061 | | | | 5.7 | % | | | 43,210 | | | | 5.9 | % | | | 737,772 | |
Construction | | | — | | | | — | | | | — | | | | — | | | | 557 | | | | 20.8 | % | | | 2,677 | |
Residential real estate | | | 2,364 | | | | 1.9 | % | | | 10,312 | | | | 8.3 | % | | | 9,569 | | | | 7.7 | % | | | 124,011 | |
Home equity | | | 426 | | | | 0.5 | % | | | 2,861 | | | | 3.1 | % | | | 10,834 | | | | 11.8 | % | | | 92,141 | |
Personal | | | 8 | | | | * | | | | 242 | | | | 0.5 | % | | | 4,283 | | | | 8.4 | % | | | 50,724 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Total legacy | | | 18,642 | | | | 1.3 | % | | | 61,226 | | | | 4.3 | % | | | 86,746 | | | | 6.0 | % | | | 1,436,889 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Total | | $ | 96,794 | | | | 1.0 | % | | $ | 107,876 | | | | 1.1 | % | | $ | 138,780 | | | | 1.4 | % | | $ | 10,139,982 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
As of September 30, 2012 | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Transformational(1) | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Commercial | | $ | 38,369 | | | | 0.7 | % | | $ | 37,792 | | | | 0.7 | % | | $ | 52,845 | | | | 0.9 | % | | $ | 5,669,595 | |
Commercial real estate | | | 33,333 | | | | 1.9 | % | | | 1,250 | | | | 0.1 | % | | | 40,072 | | | | 2.3 | % | | | 1,768,955 | |
Construction | | | — | | | | — | | | | — | | | | — | | | | — | | | | — | | | | 159,696 | |
Residential real estate | | | — | | | | — | | | | 4,323 | | | | 2.0 | % | | | 1,439 | | | | 0.7 | % | | | 220,066 | |
Home equity | | | — | | | | — | | | | 1,528 | | | | 2.2 | % | | | 794 | | | | 1.1 | % | | | 69,700 | |
Personal | | | — | | | | — | | | | 49 | | | | * | | | | 600 | | | | 0.4 | % | | | 162,658 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Total transformational | | $ | 71,702 | | | | 0.9 | % | | $ | 44,942 | | | | 0.6 | % | | $ | 95,750 | | | | 1.2 | % | | $ | 8,050,670 | |
Legacy(1) | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Commercial | | $ | 17,078 | | | | 3.9 | % | | $ | 4,950 | | | | 1.1 | % | | $ | 8,337 | | | | 1.9 | % | | $ | 434,715 | |
Commercial real estate | | | 13,241 | | | | 1.6 | % | | | 45,901 | | | | 5.4 | % | | | 47,985 | | | | 5.7 | % | | | 845,243 | |
Construction | | | — | | | | — | | | | — | | | | — | | | | 557 | | | | 18.4 | % | | | 3,028 | |
Residential real estate | | | 2,371 | | | | 1.7 | % | | | 13,018 | | | | 9.3 | % | | | 11,063 | | | | 7.9 | % | | | 140,028 | |
Home equity | | | 312 | | | | 0.3 | % | | | 3,836 | | | | 3.8 | % | | | 11,614 | | | | 11.6 | % | | | 100,368 | |
Personal | | | 2 | | | | * | | | | 282 | | | | 0.5 | % | | | 4,589 | | | | 8.9 | % | | | 51,369 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Total legacy | | | 33,004 | | | | 2.1 | % | | | 67,987 | | | | 4.3 | % | | | 84,145 | | | | 5.3 | % | | | 1,574,751 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Total | | $ | 104,706 | | | | 1.1 | % | | $ | 112,929 | | | | 1.2 | % | | $ | 179,895 | | | | 1.9 | % | | $ | 9,625,421 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
![LOGO](https://capedge.com/proxy/8-K/0001193125-13-018244/g470742ex99s_8.jpg)
(1) | Refer to Glossary of Terms for definition. |
| | |
Loan Portfolio Aging (excluding covered assets(1)) Unaudited (Dollars in thousands) | | ![LOGO](https://capedge.com/proxy/8-K/0001193125-13-018244/g470742privatebancorp.jpg) |
| | | | | | | | | | | | | | | | | | | | | | | | |
As of December 31, 2012 | | Current | | | 30-59 Days Past Due | | | 60-89 Days Past Due | | | 90 Days Past Due and Accruing | | | Nonaccrual | | | Total Loans | |
Loan balances: | | | | | | | | | | | | | | | | | | | | | | | | |
Commercial | | $ | 6,451,311 | | | $ | 2,195 | | | $ | 1,365 | | | $ | — | | | $ | 41,913 | | | $ | 6,496,784 | |
Commercial real estate | | | 2,597,780 | | | | 4,073 | | | | 5,278 | | | | — | | | | 68,554 | | | | 2,675,685 | |
Construction | | | 189,939 | | | | — | | | | — | | | | — | | | | 557 | | | | 190,496 | |
Residential real estate | | | 359,096 | | | | 3,260 | | | | — | | | | — | | | | 11,224 | | | | 373,580 | |
Personal and home equity | | | 384,606 | | | | 1,837 | | | | 462 | | | | — | | | | 16,532 | | | | 403,437 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Total loans | | $ | 9,982,732 | | | $ | 11,365 | | | $ | 7,105 | | | $ | — | | | $ | 138,780 | | | $ | 10,139,982 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | |
Aging as a percent of loan balance: | | | | | | | | | | | | | | | | | | | | | | | | |
Commercial | | | 99.30 | % | | | 0.03 | % | | | 0.02 | % | | | — | | | | 0.65 | % | | | 100.00 | % |
Commercial real estate | | | 97.09 | % | | | 0.15 | % | | | 0.20 | % | | | — | | | | 2.56 | % | | | 100.00 | % |
Construction | | | 99.71 | % | | | — | | | | — | | | | — | | | | 0.29 | % | | | 100.00 | % |
Residential real estate | | | 96.13 | % | | | 0.87 | % | | | — | | | | — | | | | 3.00 | % | | | 100.00 | % |
Personal and home equity | | | 95.33 | % | | | 0.46 | % | | | 0.11 | % | | | — | | | | 4.10 | % | | | 100.00 | % |
| | | | | | | | | | | | | | | | | | | | | | | | |
Total loans | | | 98.45 | % | | | 0.11 | % | | | 0.07 | % | | | — | | | | 1.37 | % | | | 100.00 | % |
| |
| | | | | | |
| | 4Q12 | | | 3Q12 | | | 2Q12 | | | 1Q12 | | | 4Q11 | | | | |
Nonaccrual loans: | | | | | | | | | | | | | | | | | | | | | | | | |
Commercial | | $ | 41,913 | | | $ | 61,182 | | | $ | 59,841 | | | $ | 40,186 | | | $ | 65,958 | | | | | |
Commercial real estate | | | 68,554 | | | | 88,057 | | | | 119,444 | | | | 159,255 | | | | 133,257 | | | | | |
Construction | | | 557 | | | | 557 | | | | 555 | | | | 2,781 | | | | 21,879 | | | | | |
Residential real estate | | | 11,224 | | | | 12,502 | | | | 11,028 | | | | 12,069 | | | | 14,589 | | | | | |
Personal and home equity | | | 16,532 | | | | 17,597 | | | | 18,471 | | | | 18,931 | | | | 24,169 | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Total | | $ | 138,780 | | | $ | 179,895 | | | $ | 209,339 | | | $ | 233,222 | | | $ | 259,852 | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | |
Nonaccrual loans as a percent of total loan type: | | | | | | | | | | | | | | | | | | | | | | | | |
Commercial | | | 0.65 | % | | | 1.00 | % | | | 1.01 | % | | | 0.73 | % | | | 1.24 | % | | | | |
Commercial real estate | | | 2.56 | % | | | 3.37 | % | | | 4.55 | % | | | 5.55 | % | | | 4.96 | % | | | | |
Construction | | | 0.29 | % | | | 0.34 | % | | | 0.32 | % | | | 2.18 | % | | | 7.62 | % | | | | |
Residential real estate | | | 3.00 | % | | | 3.47 | % | | | 3.34 | % | | | 3.91 | % | | | 4.91 | % | | | | |
Personal and home equity | | | 4.10 | % | | | 4.58 | % | | | 4.59 | % | | | 4.59 | % | | | 5.84 | % | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Total | | | 1.37 | % | | | 1.87 | % | | | 2.22 | % | | | 2.53 | % | | | 2.88 | % | | | | |
| | | | | | |
Loans past due 60-89 days and still accruing: | | | | | | | | | | | | | | | | | | | | | | | | |
Commercial | | $ | 1,365 | | | $ | 1,129 | | | $ | 5,064 | | | $ | 3,963 | | | $ | 923 | | | | | |
Commercial real estate | | | 5,278 | | | | 3,588 | | | | 2,543 | | | | 2,081 | | | | 9,777 | | | | | |
Construction | | | — | | | | — | | | | — | | | | 68 | | | | 2,381 | | | | | |
Residential real estate | | | — | | | | 655 | | | | 21 | | | | 1,135 | | | | 645 | | | | | |
Personal and home equity | | | 462 | | | | 1,569 | | | | 1,017 | | | | 253 | | | | 809 | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Total | | $ | 7,105 | | | $ | 6,941 | | | $ | 8,645 | | | $ | 7,500 | | | $ | 14,535 | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | |
|
Loans past due 60-89 days and still accruing as a percent of total loan type: | |
Commercial | | | 0.02 | % | | | 0.02 | % | | | 0.09 | % | | | 0.07 | % | | | 0.02 | % | | | | |
Commercial real estate | | | 0.20 | % | | | 0.14 | % | | | 0.10 | % | | | 0.07 | % | | | 0.36 | % | | | | |
Construction | | | — | | | | — | | | | — | | | | 0.05 | % | | | 0.83 | % | | | | |
Residential real estate | | | — | | | | 0.18 | % | | | 0.01 | % | | | 0.37 | % | | | 0.22 | % | | | | |
Personal and home equity | | | 0.11 | % | | | 0.41 | % | | | 0.25 | % | | | 0.06 | % | | | 0.20 | % | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Total | | | 0.07 | % | | | 0.07 | % | | | 0.09 | % | | | 0.08 | % | | | 0.16 | % | | | | |
|
Loans past due 30-59 days and still accruing: | |
Commercial | | $ | 2,195 | | | $ | 6,141 | | | $ | 901 | | | $ | 3,216 | | | $ | 6,018 | | | | | |
Commercial real estate | | | 4,073 | | | | 5,232 | | | | 1,314 | | | | 6,590 | | | | 3,523 | | | | | |
Construction | | | — | | | | — | | | | — | | | | — | | | | — | | | | | |
Residential real estate | | | 3,260 | | | | 240 | | | | 341 | | | | 4,960 | | | | 3,800 | | | | | |
Personal and home equity | | | 1,837 | | | | 2,072 | | | | 1,983 | | | | 1,754 | | | | 446 | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Total | | $ | 11,365 | | | $ | 13,685 | | | $ | 4,539 | | | $ | 16,520 | | | $ | 13,787 | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | |
|
Loans past due 30-59 days and still accruing as a percent of total loan type: | |
Commercial | | | 0.03 | % | | | 0.10 | % | | | 0.01 | % | | | 0.06 | % | | | 0.11 | % | | | | |
Commercial real estate | | | 0.15 | % | | | 0.20 | % | | | 0.05 | % | | | 0.23 | % | | | 0.13 | % | | | | |
Construction | | | — | | | | — | | | | — | | | | — | | | | — | | | | | |
Residential real estate | | | 0.87 | % | | | 0.07 | % | | | 0.10 | % | | | 1.61 | % | | | 1.28 | % | | | | |
Personal and home equity | | | 0.46 | % | | | 0.54 | % | | | 0.49 | % | | | 0.43 | % | | | 0.11 | % | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Total | | | 0.11 | % | | | 0.14 | % | | | 0.05 | % | | | 0.18 | % | | | 0.15 | % | | | | |
(1) | Refer to Glossary of Terms for definition. |
| | |
Asset Quality (excluding covered assets(1)) Unaudited (Dollars in thousands) | | ![LOGO](https://capedge.com/proxy/8-K/0001193125-13-018244/g470742privatebancorp.jpg) |
Nonaccrual Loans Stratification
| | | | | | | | | | | | | | | | | | | | | | | | |
| | $10.0 Million or More | | | $5.0 to $9.9 Million | | | $3.0 to $4.9 Million | | | $1.5 to $2.9 Million | | | Under $1.5 Million | | | Total | |
As of December 31, 2012 | | | | | | | | | | | | | | | | | | | | | | | | |
Amount: | | | | | | | | | | | | | | | | | | | | | | | | |
Commercial | | $ | 26,756 | | | $ | — | | | $ | 7,709 | | | $ | 2,869 | | | $ | 4,579 | | | $ | 41,913 | |
Commercial real estate | | | 15,890 | | | | 12,425 | | | | 4,274 | | | | 15,473 | | | | 20,492 | | | | 68,554 | |
Construction | | | — | | | | — | | | | — | | | | — | | | | 557 | | | | 557 | |
Residential real estate | | | — | | | | — | | | | 4,789 | | | | — | | | | 6,435 | | | | 11,224 | |
Personal and home equity | | | — | | | | — | | | | 3,760 | | | | — | | | | 12,772 | | | | 16,532 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Total | | $ | 42,646 | | | $ | 12,425 | | | $ | 20,532 | | | $ | 18,342 | | | $ | 44,835 | | | $ | 138,780 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | |
Number of borrowers: | | | | | | | | | | | | | | | | | | | | | | | | |
Commercial | | | 2 | | | | — | | | | 2 | | | | 1 | | | | 26 | | | | 31 | |
Commercial real estate | | | 1 | | | | 2 | | | | 1 | | | | 7 | | | | 38 | | | | 49 | |
Construction | | | — | | | | — | | | | — | | | | — | | | | 2 | | | | 2 | |
Residential real estate | | | — | | | | — | | | | 1 | | | | — | | | | 26 | | | | 27 | |
Personal and home equity | | | — | | | | — | | | | 1 | | | | — | | | | 39 | | | | 40 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Total | | | 3 | | | | 2 | | | | 5 | | | | 8 | | | | 131 | | | | 149 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | |
As of September 30, 2012 | | | | | | | | | | | | | | | | | | | | | | | | |
Amount: | | | | | | | | | | | | | | | | | | | | | | | | |
Commercial | | $ | 45,603 | | | $ | — | | | $ | 7,535 | | | $ | 3,107 | | | $ | 4,937 | | | $ | 61,182 | |
Commercial real estate | | | 31,426 | | | | 12,528 | | | | 7,371 | | | | 19,549 | | | | 17,183 | | | | 88,057 | |
Construction | | | — | | | | — | | | | — | | | | — | | | | 557 | | | | 557 | |
Residential real estate | | | — | | | | — | | | | 4,789 | | | | — | | | | 7,713 | | | | 12,502 | |
Personal and home equity | | | — | | | | — | | | | 3,848 | | | | — | | | | 13,749 | | | | 17,597 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Total | | $ | 77,029 | | | $ | 12,528 | | | $ | 23,543 | | | $ | 22,656 | | | $ | 44,139 | | | $ | 179,895 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | |
Number of borrowers: | | | | | | | | | | | | | | | | | | | | | | | | |
Commercial | | | 3 | | | | — | | | | 2 | | | | 2 | | | | 29 | | | | 36 | |
Commercial real estate | | | 2 | | | | 2 | | | | 2 | | | | 9 | | | | 35 | | | | 50 | |
Construction | | | — | | | | — | | | | — | | | | — | | | | 2 | | | | 2 | |
Residential real estate | | | — | | | | — | | | | 1 | | | | — | | | | 28 | | | | 29 | |
Personal and home equity | | | — | | | | — | | | | 1 | | | | — | | | | 46 | | | | 47 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Total | | | 5 | | | | 2 | | | | 6 | | | | 11 | | | | 140 | | | | 164 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
| |
| | | | | |
Restructured Loans Accruing Interest Stratification | | | | | | | | | | | | | | | | | | | | | |
| | $10.0 Million or More | | | $5.0 to $9.9 Million | | | $3.0 to $4.9 Million | | | $1.5 to $2.9 Million | | | Under $1.5 Million | | | Total | |
As of December 31, 2012 | | | | | | | | | | | | | | | | | | | | | | | | |
Amount: | | | | | | | | | | | | | | | | | | | | | | | | |
Commercial | | $ | 25,073 | | | $ | 13,661 | | | $ | 4,460 | | | $ | — | | | $ | 1,073 | | | $ | 44,267 | |
Commercial real estate | | | — | | | | 11,667 | | | | — | | | | 2,193 | | | | 898 | | | | 14,758 | |
Construction | | | — | | | | — | | | | — | | | | — | | | | — | | | | — | |
Residential real estate | | | — | | | | — | | | | — | | | | — | | | | 465 | | | | 465 | |
Personal and home equity | | | — | | | | — | | | | — | | | | — | | | | 1,490 | | | | 1,490 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Total | | $ | 25,073 | | | $ | 25,328 | | | $ | 4,460 | | | $ | 2,193 | | | $ | 3,926 | | | $ | 60,980 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | |
Number of borrowers: | | | | | | | | | | | | | | | | | | | | | | | | |
Commercial | | | 2 | | | | 2 | | | | 1 | | | | — | | | | 3 | | | | 8 | |
Commercial real estate | | | — | | | | 2 | | | | — | | | | 1 | | | | 3 | | | | 6 | |
Construction | | | — | | | | — | | | | — | | | | — | | | | — | | | | — | |
Residential real estate | | | — | | | | — | | | | — | | | | — | | | | 1 | | | | 1 | |
Personal and home equity | | | — | | | | — | | | | — | | | | — | | | | 1 | | | | 1 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Total | | | 2 | | | | 4 | | | | 1 | | | | 1 | | | | 8 | | | | 16 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | |
As of September 30, 2012 | | | | | | | | | | | | | | | | | | | | | | | | |
Amount: | | | | | | | | | | | | | | | | | | | | | | | | |
Commercial | | $ | 24,992 | | | $ | 14,700 | | | $ | — | | | $ | — | | | $ | 4,629 | | | $ | 44,321 | |
Commercial real estate | | | — | | | | 5,136 | | | | — | | | | 4,169 | | | | 2,641 | | | | 11,946 | |
Construction | | | — | | | | — | | | | — | | | | — | | | | — | | | | — | |
Residential real estate | | | — | | | | — | | | | — | | | | — | | | | 670 | | | | 670 | |
Personal and home equity | | | — | | | | — | | | | — | | | | — | | | | 1,494 | | | | 1,494 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Total | | $ | 24,992 | | | $ | 19,836 | | | $ | — | | | $ | 4,169 | | | $ | 9,434 | | | $ | 58,431 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | |
Number of borrowers: | | | | | | | | | | | | | | | | | | | | | | | | |
Commercial | | | 2 | | | | 2 | | | | — | | | | — | | | | 5 | | | | 9 | |
Commercial real estate | | | — | | | | 1 | | | | — | | | | 2 | | | | 6 | | | | 9 | |
Construction | | | — | | | | — | | | | — | | | | — | | | | — | | | | — | |
Residential real estate | | | — | | | | — | | | | — | | | | — | | | | 2 | | | | 2 | |
Personal and home equity | | | — | | | | — | | | | — | | | | — | | | | 1 | | | | 1 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Total | | | 2 | | | | 3 | | | | — | | | | 2 | | | | 14 | | | | 21 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
(1) | Refer to Glossary of Terms for definition. |
| | |
Foreclosed Real Estate (OREO), excluding covered assets(1) Unaudited (Dollars in thousands) | | ![LOGO](https://capedge.com/proxy/8-K/0001193125-13-018244/g470742privatebancorp.jpg) |
OREO Properties by Type
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | December 31, 2012 | | | September 30, 2012 | | | December 31, 2011 | |
| | Number of Properties | | | Amount | | | % of Total | | | Number of Properties | | | Amount | | | % of Total | | | Number of Properties | | | Amount | | | % of Total | |
Single-family homes | | | 50 | | | $ | 6,337 | | | | 8 | % | | | 53 | | | $ | 6,636 | | | | 7 | % | | | 70 | | | $ | 17,602 | | | | 14 | % |
Land parcels | | | 170 | | | | 33,072 | | | | 40 | % | | | 244 | | | | 40,443 | | | | 41 | % | | | 262 | | | | 51,465 | | | | 41 | % |
Multi-family | | | 6 | | | | 8,111 | | | | 10 | % | | | 11 | | | | 8,960 | | | | 9 | % | | | 15 | | | | 12,591 | | | | 10 | % |
Office/industrial | | | 40 | | | | 27,585 | | | | 34 | % | | | 42 | | | | 33,044 | | | | 34 | % | | | 44 | | | | 37,019 | | | | 29 | % |
Retail | | | 8 | | | | 6,775 | | | | 8 | % | | | 8 | | | | 8,750 | | | | 9 | % | | | 9 | | | | 7,052 | | | | 6 | % |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Total | | | 274 | | | $ | 81,880 | | | | 100 | % | | | 358 | | | $ | 97,833 | | | | 100 | % | | | 400 | | | $ | 125,729 | | | | 100 | % |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| |
|
OREO Property Type by Location | |
| | | | | | | | | |
| | Illinois | | | Georgia | | | Michigan | | | South Eastern (2) | | | Mid Western (3) | | | Other | | | Total | | | | | | | |
December 31, 2012 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Single-family homes | | $ | 4,301 | | | $ | — | | | $ | 1,610 | | | $ | — | | | $ | 256 | | | $ | 170 | | | $ | 6,337 | | | | | | | | | |
Land parcels | | | 18,913 | | | | 2,626 | | | | 616 | | | | 7,820 | | | | 3,097 | | | | — | | | | 33,072 | | | | | | | | | |
Multi-family | | | 1,178 | | | | — | | | | — | | | | — | | | | — | | | | 6,933 | | | | 8,111 | | | | | | | | | |
Office/industrial | | | 17,960 | | | | 598 | | | | 403 | | | | 2,852 | | | | 5,772 | | | | — | | | | 27,585 | | | | | | | | | |
Retail | | | 5,584 | | | | 1,191 | | | | — | | | | — | | | | — | | | | — | | | | 6,775 | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Total | | $ | 47,936 | | | $ | 4,415 | | | $ | 2,629 | | | $ | 10,672 | | | $ | 9,125 | | | $ | 7,103 | | | $ | 81,880 | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
% of Total | | | 59 | % | | | 5 | % | | | 3 | % | | | 13 | % | | | 11 | % | | | 9 | % | | | 100 | % | | | | | | | | |
| | | | | | | | | |
September 30, 2012 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Single-family homes | | $ | 6,249 | | | $ | — | | | $ | — | | | $ | — | | | $ | 146 | | | $ | 241 | | | $ | 6,636 | | | | | | | | | |
Land parcels | | | 22,997 | | | | 2,830 | | | | 1,757 | | | | 7,820 | | | | 5,039 | | | | — | | | | 40,443 | | | | | | | | | |
Multi-family | | | 1,835 | | | | — | | | | — | | | | — | | | | 193 | | | | 6,932 | | | | 8,960 | | | | | | | | | |
Office/industrial | | | 19,755 | | | | 598 | | | | 839 | | | | 2,852 | | | | 7,321 | | | | 1,679 | | | | 33,044 | | | | | | | | | |
Retail | | | 7,273 | | | | 1,477 | | | | — | | | | — | | | | — | | | | — | | | | 8,750 | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Total | | $ | 58,109 | | | $ | 4,905 | | | $ | 2,596 | | | $ | 10,672 | | | $ | 12,699 | | | $ | 8,852 | | | $ | 97,833 | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
% of Total | | | 59 | % | | | 5 | % | | | 3 | % | | | 11 | % | | | 13 | % | | | 9 | % | | | 100 | % | | | | | | | | |
| | | | | | | | | |
December 31, 2011 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Single family homes | | $ | 14,013 | | | $ | 385 | | | $ | 1,718 | | | $ | — | | | $ | 608 | | | $ | 878 | | | $ | 17,602 | | | | | | | | | |
Land parcels | | | 29,370 | | | | 2,898 | | | | 3,171 | | | | 9,568 | | | | 6,458 | | | | — | | | | 51,465 | | | | | | | | | |
Multi-family | | | 3,327 | | | | — | | | | — | | | | — | | | | — | | | | 9,264 | | | | 12,591 | | | | | | | | | |
Office/industrial | | | 18,430 | | | | 1,656 | | | | 548 | | | | 3,762 | | | | 9,228 | | | | 3,395 | | | | 37,019 | | | | | | | | | |
Retail | | | 4,501 | | | | 1,615 | | | | 936 | | | | — | | | | — | | | | — | | | | 7,052 | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Total | | $ | 69,641 | | | $ | 6,554 | | | $ | 6,373 | | | $ | 13,330 | | | $ | 16,294 | | | $ | 13,537 | | | $ | 125,729 | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
% of Total | | | 55 | % | | | 5 | % | | | 5 | % | | | 11 | % | | | 13 | % | | | 11 | % | | | 100 | % | | | | | | | | |
(1) | Refer to Glossary of Terms for definition. |
(2) | Represents the southeastern states of Arkansas and Florida. |
(3) | Represents the Midwestern states of Kansas, Missouri, Wisconsin, Indiana and Ohio. |
| | |
Allowance for Loan Losses (excluding covered assets(1)) Unaudited (Dollars in thousands) | | ![LOGO](https://capedge.com/proxy/8-K/0001193125-13-018244/g470742privatebancorp.jpg) |
| | | | | | | | | | | | | | | | | | | | |
| | 4Q12 | | | 3Q12 | | | 2Q12 | | | 1Q12 | | | 4Q11 | |
Change in allowance for loan losses: | | | | | | | | | | | | | | | | | | | | |
Balance at beginning of period | | $ | 166,859 | | | $ | 174,302 | | | $ | 183,844 | | | $ | 191,594 | | | $ | 200,041 | |
Loans charged-off: | | | | | | | | | | | | | | | | | | | | |
Commercial | | | (10,388 | ) | | | (4,062 | ) | | | (7,769 | ) | | | (9,549 | ) | | | (12,991 | ) |
Commercial real estate | | | (8,105 | ) | | | (16,790 | ) | | | (17,924 | ) | | | (25,280 | ) | | | (24,083 | ) |
Construction | | | 30 | | | | 64 | | | | (828 | ) | | | (1,245 | ) | | | (1,526 | ) |
Residential real estate | | | (621 | ) | | | (299 | ) | | | (1,006 | ) | | | (1,084 | ) | | | (1,203 | ) |
Home equity | | | (1,640 | ) | | | (1,001 | ) | | | (4 | ) | | | (483 | ) | | | (1,340 | ) |
Personal | | | (612 | ) | | | (1,006 | ) | | | (6,341 | ) | | | (2,085 | ) | | | (290 | ) |
| | | | | | | | | | | | | | | | | | | | |
Total charge-offs | | | (21,336 | ) | | | (23,094 | ) | | | (33,872 | ) | | | (39,726 | ) | | | (41,433 | ) |
| | | | | | | | | | | | | | | | | | | | |
Recoveries on loans previously charged-off: | | | | | | | | | | | | | | | | | | | | |
Commercial | | | 947 | | | | 919 | | | | 634 | | | | 1,679 | | | | 830 | |
Commercial real estate | | | 2,133 | | | | 544 | | | | 4,150 | | | | 1,882 | | | | 1,410 | |
Construction | | | 16 | | | | 594 | | | | 1,664 | | | | 41 | | | | 109 | |
Residential real estate | | | 106 | | | | 7 | | | | 2 | | | | 11 | | | | 10 | |
Home equity | | | 52 | | | | 117 | | | | 314 | | | | 26 | | | | 300 | |
Personal | | | 43 | | | | 229 | | | | 163 | | | | 702 | | | | 544 | |
| | | | | | | | | | | | | | | | | | | | |
Total recoveries | | | 3,297 | | | | 2,410 | | | | 6,927 | | | | 4,341 | | | | 3,203 | |
| | | | | | | | | | | | | | | | | | | | |
Net charge-offs | | | (18,039 | ) | | | (20,684 | ) | | | (26,945 | ) | | | (35,385 | ) | | | (38,230 | ) |
Provisions charged to operating expense | | | 12,597 | | | | 13,241 | | | | 17,403 | | | | 27,635 | | | | 29,783 | |
| | | | | | | | | | | | | | | | | | | | |
Balance at end of period | | $ | 161,417 | | | $ | 166,859 | | | $ | 174,302 | | | $ | 183,844 | | | $ | 191,594 | |
| | | | | | | | | | | | | | | | | | | | |
| | | | | |
Allocation of allowance for loan losses: | | | | | | | | | | | | | | | | | | | | |
General allocated reserve: | | | | | | | | | | | | | | | | | | | | |
Commercial | | $ | 50,450 | | | $ | 49,115 | | | $ | 47,210 | | | $ | 45,850 | | | $ | 46,500 | |
Commercial real estate | | | 52,700 | | | | 54,500 | | | | 53,700 | | | | 57,750 | | | | 56,000 | |
Construction | | | 2,317 | | | | 2,200 | | | | 2,635 | | | | 1,900 | | | | 7,650 | |
Residential real estate | | | 5,700 | | | | 5,100 | | | | 5,200 | | | | 5,400 | | | | 5,400 | |
Home equity | | | 4,000 | | | | 3,980 | | | | 4,200 | | | | 4,700 | | | | 2,750 | |
Personal | | | 2,860 | | | | 2,800 | | | | 3,260 | | | | 3,295 | | | | 3,350 | |
| | | | | | | | | | | | | | | | | | | | |
Total allocated | | | 118,027 | | | | 117,695 | | | | 116,205 | | | | 118,895 | | | | 121,650 | |
Specific reserve | | | 43,390 | | | | 49,164 | | | | 58,097 | | | | 64,949 | | | | 69,944 | |
| | | | | | | | | | | | | | | | | | | | |
Total | | $ | 161,417 | | | $ | 166,859 | | | $ | 174,302 | | | $ | 183,844 | | | $ | 191,594 | |
| | | | | | | | | | | | | | | | | | | | |
| | | |
Allocation of reserve by a percent of total allowance for loan losses: | | | | | | | | | | | | | |
General allocated reserve: | | | | | | | | | | | | | | | | | | | | |
Commercial | | | 31 | % | | | 29 | % | | | 27 | % | | | 25 | % | | | 24 | % |
Commercial real estate | | | 33 | % | | | 33 | % | | | 31 | % | | | 31 | % | | | 29 | % |
Construction | | | 1 | % | | | 1 | % | | | 2 | % | | | 1 | % | | | 4 | % |
Residential real estate | | | 4 | % | | | 3 | % | | | 3 | % | | | 3 | % | | | 3 | % |
Home equity | | | 2 | % | | | 2 | % | | | 2 | % | | | 3 | % | | | 1 | % |
Personal | | | 2 | % | | | 2 | % | | | 2 | % | | | 2 | % | | | 2 | % |
| | | | | | | | | | | | | | | | | | | | |
Total allocated | | | 73 | % | | | 70 | % | | | 67 | % | | | 65 | % | | | 63 | % |
Specific reserve | | | 27 | % | | | 30 | % | | | 33 | % | | | 35 | % | | | 37 | % |
| | | | | | | | | | | | | | | | | | | | |
Total | | | 100 | % | | | 100 | % | | | 100 | % | | | 100 | % | | | 100 | % |
| | | | | | | | | | | | | | | | | | | | |
| | | | | |
Allowance for loan losses to: | | | | | | | | | | | | | | | | | | | | |
Total loans | | | 1.59 | % | | | 1.73 | % | | | 1.85 | % | | | 1.99 | % | | | 2.13 | % |
Nonperforming loans | | | 116 | % | | | 93 | % | | | 83 | % | | | 79 | % | | | 74 | % |
(1) Refer to Glossary of Terms for definition.
| | |
Deposits (Dollars in thousands) | | ![LOGO](https://capedge.com/proxy/8-K/0001193125-13-018244/g470742privatebancorp.jpg) |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | 12/31/12 | | | % of Total | | | 09/30/12 | | | % of Total | | | 06/30/12 | | | % of Total | | | 03/31/12 | | | % of Total | | | 12/31/11 | | | % of Total | |
| | unaudited | | | | | | unaudited | | | | | | unaudited | | | | | | unaudited | | | | | | audited | | | | |
Noninterest-bearing deposits | | $ | 3,690,340 | | | | 30 | % | | $ | 3,295,568 | | | | 29 | % | | $ | 2,920,182 | | | | 27 | % | | $ | 3,054,536 | | | | 29 | % | | $ | 3,244,307 | | | | 31 | % |
Interest-bearing demand deposits | | | 1,057,390 | | | | 9 | % | | | 893,194 | | | | 8 | % | | | 785,879 | | | | 7 | % | | | 714,522 | | | | 7 | % | | | 595,238 | | | | 6 | % |
Savings deposits | | | 310,188 | | | | 3 | % | | | 245,906 | | | | 2 | % | | | 221,816 | | | | 2 | % | | | 225,300 | | | | 2 | % | | | 210,138 | | | | 2 | % |
Money market accounts | | | 4,602,632 | | | | 38 | % | | | 4,135,689 | | | | 37 | % | | | 3,924,206 | | | | 37 | % | | | 4,122,532 | | | | 40 | % | | | 4,168,082 | | | | 40 | % |
Brokered time deposits: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Traditional | | | 382,833 | | | | 3 | % | | | 562,717 | | | | 5 | % | | | 667,454 | | | | 6 | % | | | 191,023 | | | | 2 | % | | | 20,499 | | | | * | |
Client CDARS (1) | | | 610,622 | | | | 5 | % | | | 728,079 | | | | 6 | % | | | 762,231 | | | | 7 | % | | | 695,458 | | | | 6 | % | | | 795,452 | | | | 8 | % |
Non-client CDARS (1) | | | — | | | | — | | | | — | | | | — | | | | 54,750 | | | | 1 | % | | | 75,000 | | | | 1 | % | | | — | | | | — | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Total brokered time deposits | | | 993,455 | | | | 8 | % | | | 1,290,796 | | | | 11 | % | | | 1,484,435 | | | | 14 | % | | | 961,481 | | | | 9 | % | | | 815,951 | | | | 8 | % |
Time deposits | | | 1,519,629 | | | | 12 | % | | | 1,498,287 | | | | 13 | % | | | 1,398,012 | | | | 13 | % | | | 1,344,341 | | | | 13 | % | | | 1,359,138 | | | | 13 | % |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Total deposits | | $ | 12,173,634 | | | | 100 | % | | $ | 11,359,440 | | | | 100 | % | | $ | 10,734,530 | | | | 100 | % | | $ | 10,422,712 | | | | 100 | % | | $ | 10,392,854 | | | | 100 | % |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | |
Client deposits (1) | | $ | 11,790,801 | | | | 97 | % | | $ | 10,796,723 | | | | 95 | % | | $ | 10,012,326 | | | | 93 | % | | $ | 10,156,689 | | | | 97 | % | | $ | 10,372,355 | | | | 100 | % |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
![LOGO](https://capedge.com/proxy/8-K/0001193125-13-018244/g470742ex99s_13.jpg)
(1) Refer to Glossary of Terms for definition.
* Less than 1%.
| | |
Net Interest Margin Unaudited (Dollars in thousands) | | ![LOGO](https://capedge.com/proxy/8-K/0001193125-13-018244/g470742privatebancorp.jpg) |
| | | | | | | | | | | | | | | | | | | | | | | | |
| | Three Months Ended December 31, | |
| | 2012 | | | 2011 | |
| | Average Balance | | | Interest(1) | | | Yield/ Rate | | | Average Balance | | | Interest(1) | | | Yield/ Rate | |
Assets: | | | | | | | | | | | | | | | | | | | | | | | | |
Federal funds sold and other short-term investments | | $ | 709,369 | | | $ | 452 | | | | 0.25 | % | | $ | 334,758 | | | $ | 215 | | | | 0.25 | % |
Securities: | | | | | | | | | | | | | | | | | | | | | | | | |
Taxable | | | 2,055,358 | | | | 12,938 | | | | 2.52 | % | | | 2,023,240 | | | | 15,173 | | | | 3.00 | % |
Tax-exempt(2) | | | 205,525 | | | | 2,227 | | | | 4.33 | % | | | 141,405 | | | | 1,944 | | | | 5.49 | % |
| | | | | | | | | | | | | | | | | | | | | | | | |
Total securities | | | 2,260,883 | | | | 15,165 | | | | 2.68 | % | | | 2,164,645 | | | | 17,117 | | | | 3.16 | % |
| | | | | | | | | | | | | | | | | | | | | | | | |
FHLB stock | | | 43,387 | | | | 168 | | | | 1.51 | % | | | 40,804 | | | | 90 | | | | 0.86 | % |
Loans, excluding covered assets: | | | | | | | | | | | | | | | | | | | | | | | | |
Commercial | | | 6,266,388 | | | | 71,128 | | | | 4.44 | % | | | 5,320,119 | | | | 62,775 | | | | 4.62 | % |
Commercial real estate | | | 2,684,361 | | | | 26,586 | | | | 3.88 | % | | | 2,493,296 | | | | 27,224 | | | | 4.27 | % |
Construction | | | 185,804 | | | | 1,803 | | | | 3.80 | % | | | 302,632 | | | | 2,920 | | | | 3.78 | % |
Residential | | | 401,581 | | | | 4,037 | | | | 4.02 | % | | | 344,002 | | | | 3,450 | | | | 4.01 | % |
Personal and home equity | | | 389,235 | | | | 3,300 | | | | 3.37 | % | | | 416,873 | | | | 3,784 | | | | 3.60 | % |
| | | | | | | | | | | | | | | | | | | | | | | | |
Total loans, excluding covered assets(3) | | | 9,927,369 | | | | 106,854 | | | | 4.22 | % | | | 8,876,922 | | | | 100,153 | | | | 4.42 | % |
| | | | | | | | | | | | | | | | | | | | | | | | |
Total interest-earning assets beforecovered assets(2) | | | 12,941,008 | | | | 122,639 | | | | 3.72 | % | | | 11,417,129 | | | | 117,575 | | | | 4.05 | % |
Covered assets(4) | | | 174,679 | | | | 1,318 | | | | 2.97 | % | | | 279,612 | | | | 2,744 | | | | 3.85 | % |
| | | | | | | | | | | | | | | | | | | | | | | | |
Total interest-earning assets(2) | | | 13,115,687 | | | $ | 123,957 | | | | 3.71 | % | | | 11,696,741 | | | $ | 120,319 | | | | 4.04 | % |
| | | | | | | | | | | | | | | | | | | | | | | | |
Cash and due from banks | | | 146,990 | | | | | | | | | | | | 154,163 | | | | | | | | | |
Allowance for loan and covered loan losses | | | (190,583 | ) | | | | | | | | | | | (220,356 | ) | | | | | | | | |
Other assets | | | 676,682 | | | | | | | | | | | | 700,647 | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Total assets | | $ | 13,748,776 | | | | | | | | | | | $ | 12,331,195 | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | |
Liabilities and Equity: | | | | | | | | | | | | | | | | | | | | | | | | |
Interest-bearing demand deposits | | $ | 970,026 | | | $ | 985 | | | | 0.40 | % | | $ | 599,273 | | | $ | 585 | | | | 0.39 | % |
Savings deposits | | | 282,493 | | | | 200 | | | | 0.28 | % | | | 210,577 | | | | 167 | | | | 0.32 | % |
Money market accounts | | | 4,382,023 | | | | 4,331 | | | | 0.39 | % | | | 4,253,934 | | | | 4,690 | | | | 0.44 | % |
Time deposits | | | 1,507,824 | | | | 4,139 | | | | 1.09 | % | | | 1,369,150 | | | | 4,054 | | | | 1.17 | % |
Brokered deposits | | | 1,102,772 | | | | 1,422 | | | | 0.51 | % | | | 893,860 | | | | 1,507 | | | | 0.67 | % |
| | | | | | | | | | | | | | | | | | | | | | | | |
Total interest-bearing deposits | | | 8,245,138 | | | | 11,077 | | | | 0.53 | % | | | 7,326,794 | | | | 11,003 | | | | 0.60 | % |
Short-term borrowings | | | 20,441 | | | | 77 | | | | 1.49 | % | | | 55,206 | | | | 152 | | | | 1.08 | % |
Long-term debt | | | 476,695 | | | | 7,235 | | | | 6.00 | % | | | 379,793 | | | | 5,511 | | | | 5.76 | % |
| | | | | | | | | | | | | | | | | | | | | | | | |
Total interest-bearing liabilities | | | 8,742,274 | | | | 18,389 | | | | 0.83 | % | | | 7,761,793 | | | | 16,666 | | | | 0.85 | % |
| | | | | | | | | | | | | | | | | | | | | | | | |
Noninterest-bearing demand deposits | | | 3,567,785 | | | | | | | | | | | | 3,101,145 | | | | | | | | | |
Other liabilities | | | 177,842 | | | | | | | | | | | | 170,546 | | | | | | | | | |
Equity | | | 1,260,875 | | | | | | | | | | | | 1,297,711 | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Total liabilities and equity | | $ | 13,748,776 | | | | | | | | | | | $ | 12,331,195 | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Net interest spread(2) (5) | | | | | | | | | | | 2.88 | % | | | | | | | | | | | 3.19 | % |
Effect of noninterest-bearing funds | | | | | | | | | | | 0.28 | % | | | | | | | | | | | 0.29 | % |
| | | | | | | | | | | | | | | | | | | | | | | | |
Net interest income/margin(2) (5) | | | | | | $ | 105,568 | | | | 3.16 | % | | | | | | $ | 103,653 | | | | 3.48 | % |
| | | | | | | | | | | | | | | | | | | | | | | | |
(1) Interest income included $6.3 million and $6.5 million in loan fees for the three months ended December 31, 2012 and 2011, respectively.
(2) Interest income and yields are presented on a tax-equivalent basis, assuming a federal income tax rate of 35%. This is a non-U.S. GAAP financial measure. Refer to Non-U.S. GAAP Financial Measures for a reconciliation of the effect of the tax-equivalent adjustment.
(3) Average loans on a nonaccrual basis for the recognition of interest income totaled $164.8 million and $291.1 million for the three months ended December 31, 2012 and 2011, respectively, and are included in loans for purposes of this analysis. Interest foregone on nonperforming loans was estimated to be approximately $1.7 million and $3.2 million for the three months ended December 31, 2012 and 2011, respectively, based on the average loan portfolio yield for the respective period.
(4) Covered interest-earning assets consist of loans acquired through an FDIC-assisted transaction that are subject to a loss share agreement and the related indemnification asset.
(5) Refer to Glossary of Terms for definition.
Note: Prior period net interest margin computations were modified to conform with the current period presentation.
| | |
Net Interest Margin Unaudited (Dollars in thousands) | | ![LOGO](https://capedge.com/proxy/8-K/0001193125-13-018244/g470742privatebancorp.jpg) |
| | | | | | | | | | | | | | | | | | | | | | | | |
| | Three Months Ended December 31, 2012 | | | Three Months Ended September 30, 2012 | |
| | Average Balance | | | Interest(1) | | | Yield/ Rate | | | Average Balance | | | Interest(1) | | | Yield/ Rate | |
Assets: | | | | | | | | | | | | | | | | | | | | | | | | |
Federal funds sold and other short-term investments | | $ | 709,369 | | | $ | 452 | | | | 0.25 | % | | $ | 376,212 | | | $ | 248 | | | | 0.26 | % |
Securities: | | | | | | | | | | | | | | | | | | | | | | | | |
Taxable | | | 2,055,358 | | | | 12,938 | | | | 2.52 | % | | | 2,076,464 | | | | 13,907 | | | | 2.68 | % |
Tax-exempt(2) | | | 205,525 | | | | 2,227 | | | | 4.33 | % | | | 188,627 | | | | 2,118 | | | | 4.49 | % |
| | | | | | | | | | | | | | | | | | | | | | | | |
Total securities | | | 2,260,883 | | | | 15,165 | | | | 2.68 | % | | | 2,265,091 | | | | 16,025 | | | | 2.83 | % |
| | | | | | | | | | | | | | | | | | | | | | | | |
FHLB stock | | | 43,387 | | | | 168 | | | | 1.51 | % | | | 43,426 | | | | 126 | | | | 1.14 | % |
Loans, excluding covered assets: | | | | | | | | | | | | | | | | | | | | | | | | |
Commercial | | | 6,266,388 | | | | 71,128 | | | | 4.44 | % | | | 5,951,785 | | | | 68,711 | | | | 4.52 | % |
Commercial real estate | | | 2,684,361 | | | | 26,586 | | | | 3.88 | % | | | 2,645,713 | | | | 26,924 | | | | 3.98 | % |
Construction | | | 185,804 | | | | 1,803 | | | | 3.80 | % | | | 174,044 | | | | 1,659 | | | | 3.73 | % |
Residential | | | 401,581 | | | | 4,037 | | | | 4.02 | % | | | 369,694 | | | | 3,739 | | | | 4.05 | % |
Personal and home equity | | | 389,235 | | | | 3,300 | | | | 3.37 | % | | | 397,174 | | | | 3,484 | | | | 3.49 | % |
| | | | | | | | | | | | | | | | | | | | | | | | |
Total loans, excluding covered assets(3) | | | 9,927,369 | | | | 106,854 | | | | 4.22 | % | | | 9,538,410 | | | | 104,517 | | | | 4.29 | % |
| | | | | | | | | | | | | | | | | | | | | | | | |
Total interest-earning assets beforecovered assets(2) | | | 12,941,008 | | | | 122,639 | | | | 3.72 | % | | | 12,223,139 | | | | 120,916 | | | | 3.89 | % |
Covered assets(4) | | | 174,679 | | | | 1,318 | | | | 2.97 | % | | | 197,630 | | | | 1,841 | | | | 3.66 | % |
| | | | | | | | | | | | | | | | | | | | | | | | |
Total interest-earning assets(2) | | | 13,115,687 | | | $ | 123,957 | | | | 3.71 | % | | | 12,420,769 | | | $ | 122,757 | | | | 3.88 | % |
| | | | | | | | | | | | | | | | | | | | | | | | |
Cash and due from banks | | | 146,990 | | | | | | | | | | | | 144,442 | | | | | | | | | |
Allowance for loan and covered loan losses | | | (190,583 | ) | | | | | | | | | | | (201,136 | ) | | | | | | | | |
Other assets | | | 676,682 | | | | | | | | | | | | 696,676 | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Total assets | | $ | 13,748,776 | | | | | | | | | | | $ | 13,060,751 | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | |
Liabilities and Equity: | | | | | | | | | | | | | | | | | | | | | | | | |
Interest-bearing demand deposits | | $ | 970,026 | | | $ | 985 | | | | 0.40 | % | | $ | 895,825 | | | $ | 958 | | | | 0.43 | % |
Savings deposits | | | 282,493 | | | | 200 | | | | 0.28 | % | | | 226,355 | | | | 163 | | | | 0.29 | % |
Money market accounts | | | 4,382,023 | | | | 4,331 | | | | 0.39 | % | | | 4,014,467 | | | | 4,043 | | | | 0.40 | % |
Time deposits | | | 1,507,824 | | | | 4,139 | | | | 1.09 | % | | | 1,450,904 | | | | 4,108 | | | | 1.13 | % |
Brokered deposits | | | 1,102,772 | | | | 1,422 | | | | 0.51 | % | | | 1,406,748 | | | | 1,752 | | | | 0.50 | % |
| | | | | | | | | | | | | | | | | | | | | | | | |
Total interest-bearing deposits | | | 8,245,138 | | | | 11,077 | | | | 0.53 | % | | | 7,994,299 | | | | 11,024 | | | | 0.55 | % |
Short-term borrowings | | | 20,441 | | | | 77 | | | | 1.49 | % | | | 36,967 | | | | 101 | | | | 1.06 | % |
Long-term debt | | | 476,695 | | | | 7,235 | | | | 6.00 | % | | | 374,793 | | | | 5,495 | | | | 5.82 | % |
| | | | | | | | | | | | | | | | | | | | | | | | |
Total interest-bearing liabilities | | | 8,742,274 | | | | 18,389 | | | | 0.83 | % | | | 8,406,059 | | | | 16,620 | | | | 0.79 | % |
| | | | | | | | | | | | | | | | | | | | | | | | |
Noninterest-bearing demand deposits | | | 3,567,785 | | | | | | | | | | | | 3,124,473 | | | | | | | | | |
Other liabilities | | | 177,842 | | | | | | | | | | | | 173,975 | | | | | | | | | |
Equity | | | 1,260,875 | | | | | | | | | | | | 1,356,244 | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Total liabilities and equity | | $ | 13,748,776 | | | | | | | | | | | $ | 13,060,751 | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Net interest spread(2) (5) | | | | | | | | | | | 2.88 | % | | | | | | | | | | | 3.09 | % |
Effect of noninterest-bearing funds | | | | | | | | | | | 0.28 | % | | | | | | | | | | | 0.26 | % |
| | | | | | | | | | | | | | | | | | | | | | | | |
Net interest income/margin(2) (5) | | | | | | $ | 105,568 | | | | 3.16 | % | | | | | | $ | 106,137 | | | | 3.35 | % |
| | | | | | | | | | | | | | | | | | | | | | | | |
(1)Interest income included $6.3 million and $6.5 million in loan fees for the three months ended December 31, 2012 and September 30, 2012, respectively.
(2)Interest income and yields are presented on a tax-equivalent basis, assuming a federal income tax rate of 35%. This is a non-U.S. GAAP financial measure. Refer to Non-U.S. GAAP Financial Measures for a reconciliation of the effect of the tax-equivalent adjustment.
(3) Average loans on a nonaccrual basis for the recognition of interest income totaled $164.8 million and $201.6 million for the three months ended December 31, 2012 and September 30, 2012, respectively, and are included in loans for purposes of this analysis. Interest foregone on nonperforming loans was estimated to be approximately $1.7 million and $2.1 million for the three months ended December 31, 2012 and September 30, 2012, respectively, based on the average loan portfolio yield for the respective period.
(4)Covered interest-earning assets consist of loans acquired through an FDIC-assisted transaction that are subject to a loss share agreement and the related indemnification asset.
(5) Refer to Glossary of Terms for definition.
Note: Prior period net interest margin computations were modified to conform with the current period presentation.
| | |
Net Interest Margin Unaudited (Dollars in thousands) | | ![LOGO](https://capedge.com/proxy/8-K/0001193125-13-018244/g470742privatebancorp.jpg) |
| | | | | | | | | | | | | | | | | | | | | | | | |
| | Years Ended December 31, | |
| | 2012 | | | 2011 | |
| | Average Balance | | | Interest(1) | | | Yield/ Rate | | | Average Balance | | | Interest(1) | | | Yield/ Rate | |
Assets: | | | | | | | | | | | | | | | | | | | | | | | | |
Fed funds sold and other short-term investments | | $ | 377,827 | | | $ | 965 | | | | 0.26 | % | | $ | 463,742 | | | $ | 1,181 | | | | 0.25 | % |
Securities: | | | | | | | | | | | | | | | | | | | | | | | | |
Taxable | | | 2,064,893 | | | | 56,826 | | | | 2.75 | % | | | 1,864,583 | | | | 61,026 | | | | 3.27 | % |
Tax-exempt(2) | | | 179,594 | | | | 8,360 | | | | 4.65 | % | | | 140,707 | | | | 8,296 | | | | 5.90 | % |
| | | | | | | | | | | | | | | | | | | | | | | | |
Total securities | | | 2,244,487 | | | | 65,186 | | | | 2.90 | % | | | 2,005,290 | | | | 69,322 | | | | 3.46 | % |
| | | | | | | | | | | | | | | | | | | | | | | | |
FHLB stock | | | 42,742 | | | | 547 | | | | 1.28 | % | | | 26,590 | | | | 391 | | | | 1.47 | % |
Loans, excluding covered assets: | | | | | | | | | | | | | | | | | | | | | | | | |
Commercial | | | 5,843,047 | | | | 269,284 | | | | 4.61 | % | | | 5,130,839 | | | | 240,123 | | | | 4.68 | % |
Commercial real estate | | | 2,676,709 | | | | 109,812 | | | | 4.10 | % | | | 2,640,297 | | | | 112,091 | | | | 4.25 | % |
Construction | | | 202,825 | | | | 7,609 | | | | 3.75 | % | | | 397,771 | | | | 14,937 | | | | 3.76 | % |
Residential | | | 360,904 | | | | 15,025 | | | | 4.16 | % | | | 325,606 | | | | 14,070 | | | | 4.32 | % |
Personal and home equity | | | 402,904 | | | | 14,181 | | | | 3.52 | % | | | 438,266 | | | | 15,751 | | | | 3.59 | % |
| | | | | | | | | | | | | | | | | | | | | | | | |
Total loans, excluding covered assets(3) | | | 9,486,389 | | | | 415,911 | | | | 4.38 | % | | | 8,932,779 | | | | 396,972 | | | | 4.44 | % |
| | | | | | | | | | | | | | | | | | | | | | | | |
Total interest-earning assets before covered assets(2) | | | 12,151,445 | | | | 482,609 | | | | 3.97 | % | | | 11,428,401 | | | | 467,866 | | | | 4.09 | % |
Covered assets(4) | | | 218,500 | | | | 7,300 | | | | 3.34 | % | | | 317,631 | | | | 16,137 | | | | 5.08 | % |
| | | | | | | | | | | | | | | | | | | | | | | | |
Total interest-earning assets(2) | | | 12,369,945 | | | $ | 489,909 | | | | 3.96 | % | | | 11,746,032 | | | $ | 484,003 | | | | 4.12 | % |
| | | | | | | | | | | | | | | | | | | | | | | | |
Cash and due from banks | | | 145,200 | | | | | | | | | | | | 158,655 | | | | | | | | | |
Allowance for loan and covered loan losses | | | (208,577 | ) | | | | | | | | | | | (237,038 | ) | | | | | | | | |
Other assets | | | 699,159 | | | | | | | | | | | | 685,475 | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Total assets | | $ | 13,005,727 | | | | | | | | | | | $ | 12,353,124 | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | |
Liabilities and Equity: | | | | | | | | | | | | | | | | | | | | | | | | |
Interest-bearing demand deposits | | $ | 829,686 | | | $ | 3,378 | | | | 0.41 | % | | $ | 587,453 | | | $ | 2,439 | | | | 0.42 | % |
Savings deposits | | | 238,171 | | | | 680 | | | | 0.29 | % | | | 205,814 | | | | 786 | | | | 0.38 | % |
Money market accounts | | | 4,129,620 | | | | 16,924 | | | | 0.41 | % | | | 4,413,971 | | | | 22,171 | | | | 0.50 | % |
Time deposits | | | 1,413,462 | | | | 16,041 | | | | 1.13 | % | | | 1,354,246 | | | | 16,947 | | | | 1.25 | % |
Brokered deposits | | | 1,176,131 | | | | 5,791 | | | | 0.49 | % | | | 1,210,424 | | | | 7,729 | | | | 0.64 | % |
| | | | | | | | | | | | | | | | | | | | | | | | |
Total interest-bearing deposits | | | 7,787,070 | | | | 42,814 | | | | 0.55 | % | | | 7,771,908 | | | | 50,072 | | | | 0.64 | % |
Short-term borrowings | | | 142,720 | | | | 443 | | | | 0.31 | % | | | 74,918 | | | | 2,011 | | | | 2.68 | % |
Long-term debt | | | 402,812 | | | | 23,846 | | | | 5.92 | % | | | 401,779 | | | | 21,936 | | | | 5.46 | % |
| | | | | | | | | | | | | | | | | | | | | | | | |
Total interest-bearing liabilities | | | 8,332,602 | | | | 67,103 | | | | 0.81 | % | | | 8,248,605 | | | | 74,019 | | | | 0.90 | % |
| | | | | | | | | | | | | | | | | | | | | | | | |
Noninterest-bearing demand deposits | | | 3,186,562 | | | | | | | | | | | | 2,669,924 | | | | | | | | | |
Other liabilities | | | 170,442 | | | | | | | | | | | | 163,756 | | | | | | | | | |
Equity | | | 1,316,121 | | | | | | | | | | | | 1,270,839 | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Total liabilities and equity | | $ | 13,005,727 | | | | | | | | | | | $ | 12,353,124 | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Net interest spread(2) (5) | | | | | | | | | | | 3.15 | % | | | | | | | | | | | 3.22 | % |
Effect of non interest-bearing funds | | | | | | | | | | | 0.27 | % | | | | | | | | | | | 0.27 | % |
| | | | | | | | | | | | | | | | | | | | | | | | |
Net interest income/margin(2) (5) | | | | | | $ | 422,806 | | | | 3.42 | % | | | | | | $ | 409,984 | | | | 3.49 | % |
| | | | | | | | | | | | | | | | | | | | | | | | |
(1)Interest income included $26.3 million and $24.4 million in loan fees for the year ended December 31, 2012 and 2011, respectively.
(2)Interest income and yields are presented on a tax-equivalent basis, assuming a federal income tax rate of 35%. This is a non-U.S. GAAP measure. Refer to Non-U.S. GAAP Measures for a reconciliation of the effect of the tax-equivalent adjustment.
(3) Average loans on a nonaccrual basis for the recognition of interest income totaled $212.2 million and $340.7 million for the year ended December 31, 2012 and 2011, respectively, and are included in loans for purposes of this analysis. Interest foregone on nonperforming loans was estimated to be approximately $8.9 million and $14.4 million for the year ended December 31, 2012 and 2011, respectively, based on the average loan portfolio yield for the respective period.
(4)Covered interest-earning assets consist of loans acquired through an FDIC-assisted transaction that are subject to a loss share agreement and the related indemnification asset.
(5) Refer to Glossary of Terms for definition.
Note: Prior period net interest margin computations were modified to conform with the current period presentation.
| | | | |
Non-U.S. GAAP Financial Measures Unaudited (Amounts in thousands) | | ![LOGO](https://capedge.com/proxy/8-K/0001193125-13-018244/g470742privatebancorp.jpg) |
This press release contains both financial measures based on accounting principles generally accepted in the United States (U.S. GAAP) and non-U.S. GAAP based financial measures. These non-U.S. GAAP measures include net interest income, net interest margin, net revenue, operating profit and efficiency ratio all on a fully taxable-equivalent basis; Tier 1 common equity to risk-weighted assets, tangible common equity to tangible assets, tangible equity to risk-weighted assets, tangible equity to tangible assets, and tangible book value. We believe that presenting these non-U.S. GAAP financial measures will provide information useful to investors in understanding our underlying operational performance, our business, and performance trends and facilitates comparisons with the performance of others in the banking industry.
We use net interest income on a taxable-equivalent basis in calculating various performance measures by increasing the interest income earned on tax-exempt assets to make it fully equivalent to interest income earned on taxable investments assuming a 35% tax rate. Management believes this measure to be the preferred industry measurement of net interest income as it enhances comparability to net interest income arising from taxable and tax-exempt sources, and accordingly believes that providing this measure may be useful for peer comparison purposes.
In addition to capital ratios defined by banking regulators, we also consider various measures when evaluating capital utilization and adequacy, including Tier 1 common equity to risk-weighted assets, tangible common equity to tangible assets, tangible equity to risk-weighted assets, tangible equity to tangible assets, and tangible book value. These calculations are intended to complement the capital ratios defined by banking regulators for both absolute and comparative purposes. All of these measures exclude from capital the ending balances of goodwill and other intangibles while certain of these ratios exclude preferred capital components. Because U.S. GAAP does not include capital ratio measures, we believe there are no comparable U.S. GAAP financial measures to these ratios. We believe these non-U.S. GAAP financial measures are relevant because they provide information that is helpful in assessing the level of capital available to withstand unexpected market conditions. Additionally, presentation of these measures allows readers to compare certain aspects of our capitalization to other companies. However, because there are no standardized definitions for these ratios, our calculations may not be comparable with other companies, and the usefulness of these measures to investors may be limited.
Non-U.S. GAAP financial measures have inherent limitations, are not required to be uniformly applied, and are not audited. Although these non-U.S. GAAP financial measures are frequently used by stakeholders in the evaluation of a company, they have limitations as analytical tools, and should not be considered in isolation or as a substitute for analyses of results as reported under U.S. GAAP. As a result, we encourage readers to consider our Consolidated Financial Statements in their entirety and not to rely on any single financial measure. The following table reconciles Non-U.S. GAAP financial measures to U.S. GAAP:
| | | | | | | | | | | | | | | | | | | | |
| | Quarters Ended | |
| | 4Q12 | | | 3Q12 | | | 2Q12 | | | 1Q12 | | | 4Q11 | |
Taxable-equivalent interest income | | | | | | | | | | | | | | | | | | | | |
U.S. GAAP net interest income | | $ | 104,803 | | | $ | 105,408 | | | $ | 105,346 | | | $ | 104,376 | | | $ | 102,982 | |
Taxable-equivalent adjustment | | | 765 | | | | 729 | | | | 699 | | | | 680 | | | | 671 | |
| | | | | | | | | | | | | | | | | | | | |
Taxable-equivalent net interest income(a) | | $ | 105,568 | | | $ | 106,137 | | | $ | 106,045 | | | $ | 105,056 | | | $ | 103,653 | |
| | | | | | | | | | | | | | | | | | | | |
| | | | | |
Average Earning Assets(b) | | $ | 13,115,687 | | | $ | 12,420,769 | | | $ | 12,148,279 | | | $ | 11,796,499 | | | $ | 11,696,741 | |
| | | | | |
Net Interest Margin((a) annualized) / (b) | | | 3.16 | % | | | 3.35 | % | | | 3.46 | % | | | 3.53 | % | | | 3.48 | % |
| | | | | |
Net Revenue | | | | | | | | | | | | | | | | | | | | |
Taxable-equivalent net interest income | | $ | 105,568 | | | $ | 106,137 | | | $ | 106,045 | | | $ | 105,056 | | | $ | 103,653 | |
U.S. GAAP non-interest income | | | 29,454 | | | | 27,837 | | | | 26,246 | | | | 27,504 | | | | 25,393 | |
| | | | | | | | | | | | | | | | | | | | |
Net revenue(c) | | $ | 135,022 | | | $ | 133,974 | | | $ | 132,291 | | | $ | 132,560 | | | $ | 129,046 | |
| | | | | | | | | | | | | | | | | | | | |
| | | | | |
Operating Profit | | | | | | | | | | | | | | | | | | | | |
U.S. GAAP income before income taxes | | $ | 39,765 | | | $ | 38,006 | | | $ | 30,696 | | | $ | 23,950 | | | $ | 20,534 | |
Provision for loan and covered loan losses | | | 13,177 | | | | 13,509 | | | | 17,038 | | | | 27,701 | | | | 31,611 | |
Taxable-equivalent adjustment | | | 765 | | | | 729 | | | | 699 | | | | 680 | | | | 671 | |
| | | | | | | | | | | | | | | | | | | | |
Operating profit | | $ | 53,707 | | | $ | 52,244 | | | $ | 48,433 | | | $ | 52,331 | | | $ | 52,816 | |
| | | | | | | | | | | | | | | | | | | | |
| | | | | |
Efficiency Ratio | | | | | | | | | | | | | | | | | | | | |
U.S. GAAP non-interest expense(d) | | $ | 81,315 | | | $ | 81,730 | | | $ | 83,858 | | | $ | 80,229 | | | $ | 76,230 | |
Net revenue(c) | | $ | 135,022 | | | $ | 133,974 | | | $ | 132,291 | | | $ | 132,560 | | | $ | 129,046 | |
Efficiency ratio(d) /(c) | | | 60.22 | % | | | 61.00 | % | | | 63.39 | % | | | 60.52 | % | | | 59.07 | % |
| | | | |
Non-U.S. GAAP Financial Measures (continued) Unaudited (Amounts in thousands, except per share data) | | ![LOGO](https://capedge.com/proxy/8-K/0001193125-13-018244/g470742privatebancorp.jpg) |
| | | | | | | | | | | | | | | | | | | | |
| | Years Ended December 31, | | | | | | | | | | |
| | 2012 | | | 2011 | | | | | | | | | | |
Taxable-equivalent interest income | | | | | | | | | | | | | | | | | | | | |
U.S. GAAP net interest income | | $ | 419,933 | | | $ | 407,127 | | | | | | | | | | | | | |
Taxable-equivalent adjustment | | | 2,873 | | | | 2,857 | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | |
Taxable-equivalent net interest income(a) | | $ | 422,806 | | | $ | 409,984 | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | |
Average Earning Assets(b) | | $ | 12,369,945 | | | $ | 11,746,032 | | | | | | | | | | | | | |
| | | | | |
Net Interest Margin(a) / (b) | | | 3.42 | % | | | 3.49 | % | | | | | | | | | | | | |
| | | | | |
Net Revenue | | | | | | | | | | | | | | | | | | | | |
Taxable-equivalent net interest income(a) | | $ | 422,806 | | | $ | 409,984 | | | | | | | | | | | | | |
U.S. GAAP non-interest income | | | 111,041 | | | | 98,247 | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | |
Net revenue (c) | | $ | 533,847 | | | $ | 508,231 | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | |
Operating Profit | | | | | | | | | | | | | | | | | | | | |
U.S. GAAP income before income taxes | | $ | 132,417 | | | $ | 70,200 | | | | | | | | | | | | | |
Provision for loan and covered loan losses | | | 71,425 | | | | 132,897 | | | | | | | | | | | | | |
Taxable-equivalent adjustment | | | 2,873 | | | | 2,857 | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | |
Operating profit | | $ | 206,715 | | | $ | 205,954 | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | |
| | | | | |
Efficiency Ratio | | | | | | | | | | | | | | | | | | | | |
U.S. GAAP non-interest expense (d) | | $ | 327,132 | | | $ | 302,277 | | | | | | | | | | | | | |
Net revenue(c) | | $ | 533,847 | | | $ | 508,231 | | | | | | | | | | | | | |
Efficiency ratio(d) /(c) | | | 61.28 | % | | | 59.48 | % | | | | | | | | | | | | |
| |
| | Quarters Ended | |
| | 4Q12 | | | 3Q12 | | | 2Q12 | | | 1Q12 | | | 4Q11 | |
Tier 1 Common Capital | | | | | | | | | | | | | | | | | | | | |
U.S. GAAP total equity | | $ | 1,207,166 | | | $ | 1,363,440 | | | $ | 1,334,154 | | | $ | 1,312,154 | | | $ | 1,296,752 | |
Trust preferred securities | | | 244,793 | | | | 244,793 | | | | 244,793 | | | | 244,793 | | | | 244,793 | |
Less: accumulated other comprehensive income, net of tax | | | 48,064 | | | | 55,818 | | | | 50,987 | | | | 47,152 | | | | 46,697 | |
Less: goodwill | | | 94,521 | | | | 94,534 | | | | 94,546 | | | | 94,559 | | | | 94,571 | |
Less: other intangibles | | | 12,828 | | | | 13,500 | | | | 14,152 | | | | 14,683 | | | | 15,353 | |
| | | | | | | | | | | | | | | | | | | | |
Tier 1 risk-based capital | | | 1,296,546 | | | | 1,444,381 | | | | 1,419,262 | | | | 1,400,553 | | | | 1,384,924 | |
Less: preferred stock | | | — | | | | 241,585 | | | | 241,185 | | | | 240,791 | | | | 240,403 | |
Less: trust preferred securities | | | 244,793 | | | | 244,793 | | | | 244,793 | | | | 244,793 | | | | 244,793 | |
| | | | | | | | | | | | | | | | | | | | |
Tier 1 common capital(e) | | $ | 1,051,753 | | | $ | 958,003 | | | $ | 933,284 | | | $ | 914,969 | | | $ | 899,728 | |
| | | | | | | | | | | | | | | | | | | | |
| | | | | |
Tangible Common Equity | | | | | | | | | | | | | | | | | | | | |
U.S. GAAP total equity | | $ | 1,207,166 | | | $ | 1,363,440 | | | $ | 1,334,154 | | | $ | 1,312,154 | | | $ | 1,296,752 | |
Less: goodwill | | | 94,521 | | | | 94,534 | | | | 94,546 | | | | 94,559 | | | | 94,571 | |
Less: other intangibles | | | 12,828 | | | | 13,500 | | | | 14,152 | | | | 14,683 | | | | 15,353 | |
| | | | | | | | | | | | | | | | | | | | |
Tangible equity(f) | | | 1,099,817 | | | | 1,255,406 | | | | 1,225,456 | | | | 1,202,912 | | | | 1,186,828 | |
Less: preferred stock | | | — | | | | 241,585 | | | | 241,185 | | | | 240,791 | | | | 240,403 | |
| | | | | | | | | | | | | | | | | | | | |
Tangible common equity(g) | | $ | 1,099,817 | | | $ | 1,013,821 | | | $ | 984,271 | | | $ | 962,121 | | | $ | 946,425 | |
| | | | | | | | | | | | | | | | | | | | |
Tangible Assets | | | | | | | | | | | | | | | | | | | | |
U.S. GAAP total assets | | $ | 14,057,515 | | | $ | 13,278,554 | | | $ | 12,942,176 | | | $ | 12,623,164 | | | $ | 12,416,870 | |
Less: goodwill | | | 94,521 | | | | 94,534 | | | | 94,546 | | | | 94,559 | | | | 94,571 | |
Less: other intangibles | | | 12,828 | | | | 13,500 | | | | 14,152 | | | | 14,683 | | | | 15,353 | |
| | | | | | | | | | | | | | | | | | | | |
Tangible assets(h) | | $ | 13,950,166 | | | $ | 13,170,520 | | | $ | 12,833,478 | | | $ | 12,513,922 | | | $ | 12,306,946 | |
| | | | | | | | | | | | | | | | | | | | |
| | | | | |
Risk-weighted Assets(i) | | $ | 12,375,367 | | | $ | 11,804,578 | | | $ | 11,588,371 | | | $ | 11,374,212 | | | $ | 11,191,298 | |
| | | | | |
Period-end Common Shares Outstanding(j) | | | 77,115 | | | | 72,436 | | | | 72,424 | | | | 72,415 | | | | 71,745 | |
| | | | | |
Ratios: | | | | | | | | | | | | | | | | | | | | |
Tier 1 common equity to risk-weighted assets (e) / (i) | | | 8.50 | % | | | 8.12 | % | | | 8.05 | % | | | 8.04 | % | | | 8.04 | % |
Tangible equity to tangible assets(f) / (h) | | | 7.88 | % | | | 9.53 | % | | | 9.55 | % | | | 9.61 | % | | | 9.64 | % |
Tangible equity to risk-weighted assets(f) / (i) | | | 8.89 | % | | | 10.63 | % | | | 10.57 | % | | | 10.58 | % | | | 10.60 | % |
Tangible common equity to tangible assets(g) / (h) | | | 7.88 | % | | | 7.70 | % | | | 7.67 | % | | | 7.69 | % | | | 7.69 | % |
Tangible book value(g) / (j) | | $ | 14.26 | | | $ | 14.00 | | | $ | 13.59 | | | $ | 13.29 | | | $ | 13.19 | |
![LOGO](https://capedge.com/proxy/8-K/0001193125-13-018244/g470742privatebancorp.jpg)
Glossary of Terms
Assets under management and administration (“AUMA”) - Assets held in trust where we serve as trustee or in accounts where we make investment decisions on behalf of clients. AUMA also includes non-managed assets we hold in custody for clients or for which we receive fees for advisory or brokerage services. We do not include these assets on our Consolidated Balance Sheets.
Book value - Total common equity divided by outstanding shares of common stock at end of period.
CDARS® deposit program - A deposit services arrangement that effectively achieves FDIC deposit insurance for jumbo deposit relationships. These deposits are classified as brokered deposits for regulatory deposit purposes; however, we classify certain of these deposits as client CDARS® due to the source being our client relationships and are, therefore, not traditional ‘brokered’ deposits. We also participate in a non-client CDARS® program that is more like a traditional brokered deposit program.
Client deposits - Total deposits, net of traditional brokered deposits and non-client CDARS®.
Common equity - Total equity less preferred stock.
Covered assets - Assets acquired through an FDIC-assisted transaction that are subject to a loss share agreement and are presented separately on the Consolidated Balance Sheets.
Credit quality indicators - The Company has adopted an internal risk rating policy in which each loan is rated for credit quality with a numerical rating of 1 through 8. Loans rated 5 and better (1-5 ratings, inclusive) are credits that exhibit acceptable financial performance, cash flow, and leverage. If any risk exists, we attempt to mitigate by structure, collateral, monitoring, or other meaningful controls. Credits rated 6 are considered special mention as these credits demonstrate potential weakness and that if left unresolved, may result in deterioration in the Company’s credit position and/or the repayment prospects for the credit. Borrowers rated special mention may exhibit adverse operating trends, high leverage, tight liquidity or other credit concerns. Potential problem loans have a risk rating of 7 and are considered inadequately protected by the current net worth and paying capacity of the obligor, the collateral pledged, or guarantors. These loans generally have a well defined weakness or weaknesses that may jeopardize liquidation of the debt and are characterized by the distinct possibility that the Company will sustain some loss if the deficiencies are not resolved. Nonperforming loans include nonaccrual loans risk rated 7 or 8 and have all the weaknesses inherent in a 7-rated potential problem loan with the added characteristic that the weaknesses make collection or liquidation in full, on the basis of currently existing facts, conditions and values, highly questionable and improbable. Special mention, potential problem and nonperforming loans are reviewed at minimum on a quarterly basis, while all other rated credits are reviewed as the situation warrants.
Credit valuation adjustment (“CVA”) - An adjustment may need to be incorporated into the valuation of derivative instruments for nonperformance risk to include the counterparty’s credit risk and the Company’s own credit risk. This adjustment is referred to as the CVA. The CVA represents the credit component of fair value with regard to both client-based trades and the related matched trades with interbank dealer counterparties.
Efficiency ratio - Total non-interest expense divided by the sum of net interest income on a tax equivalent basis and non-interest income. This is a non-U.S. GAAP financial measure.
Fee revenue as percent of total revenue ratio - Total non-interest income less net securities gains (losses) divided by the sum of net interest income and non-interest income less net securities gains (losses).
U.S. GAAP - Accounting principles generally accepted in the United States of America.
Net interest margin - Expressed as a percentage, net interest margin is a ratio computed as annualized taxable-equivalent net interest income divided by average interest-earning assets. The annualization of net interest income for the quarterly yield takes into consideration the interest payment convention at the product level. This is a non-U.S. GAAP financial measure.
Net interest spread - The difference between the average yield earned on interest-earning assets on a taxable-equivalent basis and the average rate paid for interest-bearing liabilities.
Net overhead ratio - Total non-interest expense less non-interest income divided by average total assets.
Net revenue - The sum of taxable equivalent net interest income and non-interest income. This is a non-U.S. GAAP financial measure.
Non-U.S. GAAP - Certain financial measures within this document that are not formally defined by U.S. GAAP or codified in the federal banking regulations. A reconciliation of these non-U.S. GAAP financial measures may be found on the previous pages.
Operating profit - The sum of U.S. GAAP income before income taxes, provision for loan and covered loan losses and taxable-equivalent adjustment. This is a non-U.S. GAAP financial measure.
Risk-weighted assets - Computed by the assignment of specific risk-weights (as currently defined by the Board of Governors of the Federal Reserve System) to assets and off-balance sheet instruments.
Tangible book value - Total common equity less goodwill and other intangibles divided by outstanding shares of common stock at end of period. This is a non-U.S. GAAP financial measure.
Tangible common equity to tangible assets ratio - 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-U.S. GAAP financial measure.
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Glossary of Terms (continued)
Taxable-equivalent interest income - The interest income earned on certain assets is completely or partially exempt from Federal income tax. As such, these tax-exempt instruments typically yield lower returns than taxable investments. To provide more meaningful comparisons of yields and margins for all interest-earning assets, we use interest income on a taxable-equivalent basis in calculating average yields and net interest margins by increasing the interest income earned on tax-exempt assets to make it fully equivalent to interest income earned on other taxable investments. This adjustment is not permitted under U.S. GAAP on the Consolidated Income Statement.
Tier 1 common capital - Tier 1 risk-based capital, less preferred equity, less trust preferred capital securities, and less noncontrolling interests.
Tier 1 equity to risk-weighted assets ratio - Tier 1 common capital divided by period-end risk-weighted assets. This is a non-U.S. GAAP financial measure and for purposes of our presentation we calculate risk-weighted assets under current requirements and not under the recently proposed rules issued by banking regulators.
Tier 1 leverage ratio - Tier 1 risk-based capital divided by adjusted average total assets.
Tier 1 risk-based capital - Total equity, plus trust preferred capital securities, plus certain noncontrolling interests that are held by others; less goodwill and certain other intangible assets, less equity investments in nonfinancial companies, less ineligible servicing assets, less disallowed deferred tax assets and less net unrealized holding gains (losses) on available for sale equity securities, available for sale debt securities, and cash flow hedge derivatives.
Tier 1 risk-based capital ratio - Tier 1 risk-based capital divided by period-end risk-weighted assets.
Total risk-based capital - Tier 1 risk-based capital plus qualifying subordinated debt, other noncontrolling interest not qualified as Tier 1, eligible gains on available-for-sale equity securities and the allowance for loan and lease losses, subject to certain limitations.
Total risk-based capital ratio - Total risk-based capital divided by period-end risk-weighted assets.
Transformational and legacy portfolios - We aggregate loans by originating line of business for reserve purposes because of observable similarities in the performance experience of loans underwritten by the business units. Loans originated by the business units that existed prior to the strategic changes in 2007 are considered “legacy” loans. Loans originated by a business unit that was established in connection with or following the business transformation plan are considered “transformational” loans. Renewals or restructurings of legacy loans may continue to be evaluated as legacy loans depending on the structure or defining characteristics of the new transaction. The Company has implemented a line of business model that has reorganized the legacy business units so that after 2009, all new loan originations are considered transformational.