EXHIBIT 99.1
------------
FOR FURTHER INFORMATION:
Don Roubitchek, CFO
PrivateBancorp, Inc.
312-683-7126
For Immediate Release
PRIVATEBANCORP REPORTS SECOND QUARTER EARNINGS
Chicago, IL, July 24, 2000 -- PrivateBancorp, Inc. (NASDAQ: PVTB) today
reported that net income for the second quarter ended June 30, 2000, was
$1,098,000, or $0.23 per diluted share, compared to second quarter 1999 net
income of $1,112,000, or $0.30 per diluted share. Net income for the six months
ended June 30, 2000, was $1,949,000, or $0.41 per diluted share, compared to
$2,139,000 or $0.58 per diluted share, over the same period last year.
"The opening of The PrivateBank (St. Louis) on June 26, 2000, represents a
significant milestone in the execution of our strategy for growth," said Ralph
B. Mandell, chairman, president and CEO. "We have assembled an outstanding
management team and are excited about the market potential in St. Louis. Results
for the quarter continue to reflect the costs associated with our expansion into
new markets."
Net interest income totaled $5.3 million in the second quarter of 2000, an
increase of 58 percent over the second quarter of 1999. Average earning assets
during the period were $645.4 million, an increase of 55 percent over the prior
year second quarter. Net interest margin averaged 3.81 percent in the second
quarter of 2000, versus 3.61 percent in the prior year second quarter. The
company has benefited during the current rising interest rate environment as the
yield on interest earning assets has increased more rapidly than the company's
cost of funds.
"We are very pleased with the improvement in net interest margin which is
the result of increasing loan outstandings throughout our franchise. Strong
business development at our new
offices and in our existing markets will continue to positively impact net
interest income throughout the remainder of 2000," said Mandell.
Non-interest income for the quarter grew to $751,000, reflecting an
increase of $235,000 or 46 percent higher than in the second quarter of 1999.
The increase in non-interest income is attributable to increases in service
charge income and trust fee revenues. Service charge income increased $107,000
over the prior year quarter primarily due to the acquisition of Johnson Bank
Illinois. Trust fee revenue increased to $551,000 as compared to the prior year
quarter of $445,000. Trust assets under administration increased to $761.8
million at June 30, 2000 compared to $666.6 million at June 30, 1999, an
increase of 14 percent which is partially due to the addition of trust business
from Johnson Bank Illinois.
Non-interest expense increased to $4.5 million in the second quarter of
2000 from $2.4 million in the second quarter of 1999, due to increases in
operating and personnel expenses associated with the company's recent expansion.
Additionally, goodwill amortization of $206,000 was recorded during the second
quarter resulting from the Johnson Bank Illinois acquisition, which closed on
February 11, 2000.
At June 30, 2000, nonperforming loans as a percentage of total loans were
0.17 percent, versus 0.24 percent at June 30, 1999 and 0.30 percent at March 31,
2000. Charge-offs totaled $381,000 in the quarter ended June 30, 2000 versus
$5,000 in the year-earlier period. The increase in charge-offs is attributable
primarily to a single commercial credit. The provision for loan losses was
$662,000 in the second quarter of 2000, versus $ 213,000 in the second quarter
of 1999. The increase in the provision for loan losses was driven primarily by
growth in the company's loan portfolio.
PrivateBancorp, Inc. was organized in 1989 to provide highly personalized
financial services primarily to affluent individuals, professionals, owners of
closely held businesses and commercial real estate investors through its bank
subsidiary, The PrivateBank and Trust Company, and its federal savings bank
subsidiary, The PrivateBank (St. Louis). The Company, which had assets of $723.0
million at June 30, 2000, currently operates The PrivateBank and Trust Company
offices in
Chicago, Oak Brook, Wilmette, St. Charles, Lake Forest, and Winnetka, Illinois,
as well as The PrivateBank (St. Louis).
Forward-Looking Statements: Statements contained in this news release that are
not historical facts may constitute forward-looking statements within the
meaning of Section 21E of the Securities Exchange Act of 1934, as amended. The
Company's ability to predict results or the actual effect of future plans or
strategies is inherently uncertain. Factors which could have a material adverse
effect on the operations and future prospects of the Company include, but are
not limited to, fluctuations in market rates of interest and loan and deposit
pricing, general economic conditions in the greater Chicago and St. Louis
metropolitan areas, legislative or regulatory changes, adverse developments in
the Company's loan or investment portfolios, competition, lower than expected
business levels or higher than anticipated costs relating to the Company's St.
Louis, Missouri office and the possible dilutive effect of potential
acquisitions or expansion. These risks and uncertainties should be considered in
evaluating forward-looking statements and undue reliance should not be placed on
such statements.
Editor's Note: Financial highlights attached.
###
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PRIVATEBANCORP, INC.
CONSOLIDATED STATEMENTS OF INCOME
(UNAUDITED, DOLLARS IN THOUSANDS EXCEPT PER SHARE DATA)
THREE MONTHS ENDED JUNE 30, SIX MONTHS ENDED JUNE 30,
---------------------------- ------------------------------
2000 1999 2000 1999
------------- -------------- -------------- -------------
INTEREST INCOME
Interest and fees on loans .......... $12,167 $6,218 $21,643 $11,854
Interest on short term investments .. 78 33 465 81
Interest on investment securities ... 1,543 1,294 2,928 2,864
------- ------ ------- -------
Total interest income ............ $13,788 $7,545 $25,036 $14,799
------- ------ ------- -------
INTEREST EXPENSE
Interest on deposits ................ $ 6,754 $3,588 $12,842 $ 7,281
Interest on borrowings .............. 1,027 360 1,289 505
------- ------ ------- -------
Total interest expense ........... $ 7,781 $3,948 $14,131 $ 7,786
------- ------ ------- -------
Net interest income ................. $ 6,007 $3,597 $10,905 $ 7,013
Provision for loan losses ........... 662 213 973 498
------- ------ ------- -------
Net interest income after
provision ...................... $ 5,345 $3,384 $ 9,932 $ 6,515
------- ------ ------- -------
NON INTEREST INCOME
Banking and trust services .......... $ 720 $ 512 $ 1,346 $ 908
Securities gains and other income ... 31 4 127 50
------- ------ ------- -------
Total non interest income ........ $ 751 $ 516 $ 1,473 $ 958
------- ------ ------- -------
NON INTEREST EXPENSE
Salaries and benefits ............... $ 1,818 $1,088 $ 3,695 $ 2,203
Other operating expenses ............ 2,428 1,291 4,475 2,431
Amortization of goodwill ............ 206 -- 319 --
------- ------ ------- -------
Total non interest expense ....... $ 4,452 $2,379 $ 8,489 $ 4,634
------- ------ ------- -------
Income before income taxes .......... $ 1,644 $1,521 $ 2,916 $ 2,839
Income tax expense .................. 546 409 967 700
------- ------ ------- -------
Net income ....................... $ 1,098 $1,112 $ 1,949 $ 2,139
======= ====== ======= =======
Weighted average shares
outstanding ...................... 4,600,740 3,451,824 4,595,536 3,443,081
Diluted average shares
outstanding ...................... 4,752,269 3,705,116 4,766,734 3,692,766
EARNINGS PER SHARE
Basic ............................... $ 0.24 $ 0.32 $ 0.42 $ 0.62
Diluted ............................. $ 0.23 $ 0.30 $ 0.41 $ 0.58
PRIVATEBANCORP, INC.
CONSOLIDATED BALANCE SHEETS
(UNAUDITED, DOLLARS IN THOUSANDS)
JUNE 30,
------------------------
2000 1999
----------- -----------
ASSETS
Cash and due from banks ..................... $ 18,341 $ 9,896
Short term investments ...................... 5,076 995
Investment securities--available-for-sale ... 96,969 89,026
Loans, net of unearned income ............... 583,522 335,306
Allowance for loan losses ................... (5,951) (3,903)
--------- ---------
Net loans ................................ $ 577,571 $ 331,403
Premises and equipment ...................... $ 3,814 $ 1,477
Goodwill .................................... 12,031 --
Other assets ................................ 9,221 5,372
--------- ---------
Total assets ............................. $ 723,023 $ 438,169
========= =========
LIABILITIES
Non-interest bearing deposits ............... $ 49,950 $ 34,267
Interest bearing deposits ................... 548,931 340,765
--------- ---------
Total deposits ........................... $ 598,881 $ 375,032
--------- ---------
Borrowings .................................. $ 68,544 $ 31,000
Other liabilities ........................... 6,053 2,171
--------- ---------
Total liabilities ........................ $ 673,478 $ 408,203
========= =========
STOCKHOLDERS' EQUITY
Common stock and surplus .................... $ 44,664 $ 26,052
Retained earnings ........................... 9,142 6,879
Accumulated other comprehensive income ...... (2,294) (1,219)
Deferred compensation ....................... (942) (796)
Loans to executive officers ................. (1,025) (950)
--------- ---------
Total stockholders' equity ............... $ 49,545 $ 29,966
========= =========
Total liabilities and stockholders' equity $ 723,023 $ 438,169
========= =========
Book value per share ........................ $ 10.73 $ 8.68
PRIVATEBANCORP, INC.
KEY FINANCIAL DATA
(UNAUDITED)
(DOLLARS IN THOUSANDS EXCEPT PER SHARE DATA)
2Q00 1Q00 4Q99 3Q99 2Q99
---------- ---------- ---------- ---------- ----------
KEY STATISTICS
Earnings before special charges (1) ...... $ 1,098 $ 849 $ 1,191 $ 1,180 $1,112
Special charges (net of tax) ............. -- -- $ 214 $ 1,382 --
Net income ............................... $ 1,098 $ 849 $ 977 $ (201) $1,112
Earnings before special charges per fully
diluted share ......................... $ 0.23 $ 0.18 $ 0.25 $ 0.25 $ 0.30
Special charges (per fully diluted share) -- -- $ (0.05) $ (0.29) --
Basic earnings per share ................. $ 0.24 $ 0.18 $ 0.21 $ (0.05) $ 0.32
Diluted earnings per share ............... $ 0.23 $ 0.18 $ 0.20 $ (0.05) $ 0.30
Return on average total assets (before
special charges) ...................... 0.65% 0.57% 0.98% 1.04% 1.02%
Return on average total equity (before
special charges) ...................... 9.04% 7.20% 10.06% 10.17% 14.82%
Non-interest income to average assets .... 0.44% 0.49% 0.44% 0.45% 0.48%
Non-interest expense to average assets ... 2.62% 2.72% 2.65% 3.70% 2.19%
Net overhead ratio ....................... 2.18% 2.23% 2.21% 3.25% 1.72%
Efficiency ratio excluding special charges
(tea) (2) ............................. 63.8% 69.2% 57.5% 57.5% 57.2%
Net interest margin ...................... 3.81% 3.59% 3.85% 3.87% 3.61%
Yield on average earning assets .......... 8.61% 8.06% 7.83% 7.63% 7.39%
Cost of average paying liabilities ....... 5.39% 5.09% 4.72% 4.46% 4.31%
Net interest spread ...................... 3.22% 2.97% 3.11% 3.17% 3.08%
Dividend payout ratio .................... 10.51% 13.52% 11.75% NM 7.76%
BALANCE SHEET RATIOS
Loans to deposits (period end) ........... 97.44% 90.08% 87.68% 91.22% 89.41%
Average interest-earning assets to average
interest-bearing liabilities .......... 112.3% 114.0% 116.7% 115.6% 115.3%
PER SHARE DATA
Dividends ................................ $ 0.025 $ 0.025 $ 0.025 $ 0.025 $0.025
Book value (period end) .................. $ 10.73 $ 10.57 $ 10.26 $ 10.11 $ 8.68
Tangible book value (period end) ......... $ 8.13 $ 7.90 $ 10.26 $ 10.11 $ 8.68
Closing price (period end) ............... $14.750 $10.500 $13.375 $17.750 --
Diluted earnings multiple ................ 15.87x 14.69x 16.32x NM --
Diluted earnings multiple before special
charges ............................... 15.87x 14.69x 13.30x 17.65x --
Book value multiple ...................... 1.37x 0.99x 1.30x 1.76x --
COMMON STOCK INFORMATION
Outstanding shares at end of period ...... 4,615,832 4,590,332 4,590,332 4,584,092 3,451,824
NUMBER OF SHARES USED TO COMPUTE:
Basic earnings per share .............. 4,600,740 4,590,332 4,585,109 4,460,280 3,451,824
Diluted earnings per share ............ 4,752,269 4,777,351 4,794,770 4,717,660 3,705,116
CAPITAL RATIOS (PERIOD END)
Total equity to total assets ............. 6.85% 7.38% 9.08% 10.30% 6.83%
Total risk-based capital ratio ........... 9.03% 9.56% 13.96% 15.22% 10.77%
Tier-1 risk based capital ratio .......... 7.15% 7.56% 12.84% 14.09% 9.63%
Leverage ratio ........................... 6.12% 6.76% 10.77% 11.19% 7.63%
- --------------
(1) Special charges represent one time costs associated with the 1999 third
quarter acquisition of Towne Square Financial Corporation and the 1999
fourth quarter start-up costs for PrivateBank (St. Louis).
(2) Ratio includes a tax equivalent adjustment for certain items in investment
income.
PRIVATEBANCORP, INC.
KEY FINANCIAL DATA
(UNAUDITED)
(DOLLARS IN THOUSANDS EXCEPT PER SHARE DATA)
2Q00 1Q00 4Q99 3Q99 2Q99
-------- -------- -------- -------- --------
SUMMARY INCOME STATEMENT
INTEREST INCOME
Loans, including fees ................. $12,167 $ 9,475 $ 7,737 $ 7,006 $ 6,218
Federal funds sold and interest bearing
deposits ............................ 78 387 115 134 33
Securities ............................ 1,543 1,385 1,088 1,189 1,294
------- ------- ------- ------- -------
Total interest income ............... 13,788 11,247 8,940 8,329 7,545
Interest expense ...................... 7,781 6,351 4,653 4,166 3,948
------- ------- ------- ------- -------
Net interest income ................... 6,007 4,896 4,287 4,163 3,597
Provision for loan loss ............. 662 311 437 273 213
------- ------- ------- ------- -------
Net interest income after provision for
loan loss ........................... 5,345 4,585 3,850 3,890 3,384
------- ------- ------- ------- -------
NON-INTEREST INCOME
Banking and trust services ............... 720 627 535 504 512
Securities (losses) gains and other income 31 95 (1) 8 4
------- ------- ------- ------- -------
Total non-interest income ............. 751 722 534 512 516
------- ------- ------- ------- -------
NON-INTEREST EXPENSE
Salaries and employee benefits ........... 1,818 1,877 1,753 1,309 1,088
Towne Square acquisition ................. -- -- -- 1,300 --
Goodwill ................................. 206 113 -- -- --
Occupancy expense ........................ 764 613 437 401 373
Other non-interest expense ............... 1,664 1,434 1,026 1,227 918
------- ------- ------- ------- -------
Total non-interest expense ............ 4,452 4,037 3,216 4,237 2,379
------- ------- ------- ------- -------
Income before income taxes ............... 1,644 1,270 1,168 165 1,521
Provision for income taxes ............... 546 421 191 366 409
------- ------- ------- ------- -------
Net income (loss) ........................... $ 1,098 $ 849 $ 977 $ (201) $ 1,112
======= ======= ======= ======= =======
PRIVATEBANCORP, INC.
KEY FINANCIAL DATA
(UNAUDITED)
(DOLLARS IN THOUSANDS EXCEPT PER SHARE DATA)
2Q00 1Q00 4Q99 3Q99 2Q99
-------- -------- -------- -------- --------
CREDIT QUALITY
Ending allowance for loan losses .......... $5,951 $5,670 $4,510 $4,079 $3,903
Non-performing assets:
Loans delinquent over 90 days .......... 340 355 223 135 710
Nonaccrual loans ....................... 635 1,222 600 569 94
Other real estate ...................... -- -- -- -- --
------ ------ ------ ------ ------
Total non-performing assets .......... $ 975 $1,577 $ 823 $ 704 $ 804
====== ====== ====== ====== ======
Loans charged off ......................... $ 381 $ 20 $ 6 $ 97 $ 5
Recoveries ................................ -- 5 -- -- --
------ ------ ------ ------ ------
Net charge-offs ........................... $ 381 $ 15 $ 6 $ 97 $ 5
====== ====== ====== ====== ======
Provision for loan losses ................. $ 662 $ 311 $ 437 $ 273 $ 213
====== ====== ====== ====== ======
KEY RATIOS
Net charge-offs to average loans .......... 0.07% 0.003% 0.002% 0.11% 0.002%
Total non-performing loans to total loans . 0.17% 0.30% 0.21% 0.20% 0.24%
Total non-performing assets to total assets 0.13% 0.24% 0.16% 0.16% 0.18%
LOAN LOSS RESERVE SUMMARY
Balance at beginning of period ............ $5,670 $4,510 $4,079 $3,903 $3,695
Johnson Bank acquisition -- loan loss
reserve ................................ -- 864 -- -- --
Provision ................................. 662 311 437 273 213
Net charge-offs ........................... 381 15 6 97 5
------ ------ ------ ------ ------
Ending allowance .......................... $5,951 $5,670 $4,510 $4,079 $3,903
====== ====== ====== ====== ======
NET LOAN CHARGE-OFFS:
Commercial real estate .................... -- -- -- -- --
Residential real estate ................... -- -- -- -- --
Commercial ................................ $ 361 $ 8 -- -- --
Personal .................................. $ 20 $ 7 $ 6 $ 97 $ 5
Home equity ............................... -- -- -- -- --
Construction .............................. -- -- -- -- --
------ ------ ------ ------ ------
Total net loan charge-offs ............. $ 381 $ 15 $ 6 $ 97 $ 5
====== ====== ====== ====== ======
PRIVATEBANCORP, INC.
AVERAGE QUARTERLY BALANCE SHEETS
(UNAUDITED, DOLLARS IN THOUSANDS)
SECOND QUARTER
-----------------------------
JUNE 30, 2000 JUNE 30, 1999
------------- -------------
AVERAGE ASSETS
Cash and due from banks ...................... $ 18,499 $ 10,994
Short term investments ....................... 5,103 3,102
Investment securities ........................ 94,748 100,130
Loans, net of unearned discount .............. 545,534 312,922
Less: Allowance for loan losses ............. (5,854) (3,713)
--------- ---------
Net loans .................................... 539,680 309,209
--------- ---------
Premises and equipment ....................... 3,763 1,526
Goodwill ..................................... 12,158 --
Other assets ................................. 8,632 5,399
--------- ---------
Total average assets ...................... $ 682,583 $ 430,360
========= =========
AVERAGE LIABILITIES AND STOCKHOLDERS' EQUITY
Non-interest bearing deposits ................ $ 50,800 $ 32,054
Interest bearing demand deposits ............. 37,375 26,567
Savings and money market deposits ............ 261,866 174,450
Time deposits ................................ 215,862 141,414
--------- ---------
Total average deposits ....................... 565,903 374,485
Funds borrowed ............................... 62,361 22,284
Other liabilities ............................ 5,447 3,392
--------- ---------
Total average liabilities ................. 633,711 400,161
Average stockholders' equity ................. 48,872 30,199
--------- ---------
Average total liabilities and stockholders'
equity .................................. $ 682,583 $ 430,360
========= =========
PRIVATEBANCORP, INC.
YEAR-TO-DATE AVERAGE BALANCE SHEETS
(UNAUDITED, DOLLARS IN THOUSANDS)
YEAR-TO-DATE
-----------------------------
JUNE 30, 2000 JUNE 30, 1999
------------- -------------
AVERAGE ASSETS
Cash and due from banks ...................... $ 17,242 $ 11,199
Short term investments ....................... 16,240 3,486
Investment securities ........................ 90,968 105,099
Loans, net of unearned discount .............. 499,333 302,784
Less: Allowance for loan losses ............. (5,464) (3,623)
--------- ---------
Net loans .................................... 493,869 299,161
--------- ---------
Premises and equipment ....................... 3,428 1,544
Goodwill ..................................... 8,572 --
Other assets ................................. 9,043 5,066
--------- ---------
Total average assets ...................... $ 639,362 $ 425,555
========= =========
AVERAGE LIABILITIES AND STOCKHOLDERS' EQUITY
Non-interest bearing deposits ................ $ 46,009 $ 32,554
Interest bearing demand deposits ............. 35,261 26,672
Savings and money market deposits ............ 260,906 174,387
Time deposits ................................ 204,413 140,053
--------- ---------
Total average deposits ....................... 546,589 373,666
Funds borrowed ............................... 39,345 18,756
Other liabilities ............................ 5,089 3,145
--------- ---------
Total average liabilities ................. 591,023 395,567
Average stockholders' equity ................. 48,339 29,988
--------- ---------
Average total liabilities and stockholders'
equity .................................. $ 639,362 $ 425,555
========= =========
PRIVATEBANCORP, INC.
BALANCE SHEETS
(DOLLARS IN THOUSANDS)
JUNE 30, MARCH 31, DECEMBER 31, SEPTEMBER 30, JUNE 30,
2000 2000 1999 1999 1999
----------- ----------- ------------ ------------- -----------
(UNAUDITED) (UNAUDITED) (UNAUDITED) (UNAUDITED)
ASSETS
Cash and due from banks .... $ 18,341 $ 16,629 $ 14,940 $ 14,284 $ 9,896
Federal funds sold ......... 5,076 10,632 29,243 1,911 995
Investment securities ...... 96,969 89,924 71,134 77,269 89,026
Loans, net of unearned
discount ................ 583,522 521,188 397,277 352,236 335,306
Less: Allowance for loan
losses ................ (5,951) (5,670) (4,510) (4,079) (3,903)
--------- --------- --------- --------- ---------
Net loans ............... $ 577,571 $ 515,518 $ 392,767 $ 348,157 $ 331,403
--------- --------- --------- --------- ---------
Premises and equipment ..... 3,814 3,211 2,028 1,462 1,477
Goodwill ................... 12,031 12,237 -- -- --
Other assets ............... 9,221 8,830 8,585 6,755 5,372
--------- --------- --------- --------- ---------
Total assets ............ $ 723,023 $ 656,981 $ 518,697 $ 449,838 $ 438,169
========= ========= ========= ========= =========
LIABILITIES AND STOCKHOLDERS'
EQUITY
Non-interest bearing
deposits ................ $ 49,950 $ 51,451 $ 36,771 $ 35,939 $ 34,267
Interest bearing demand
deposits ................ 34,062 36,926 33,400 26,456 26,286
Savings and money market
deposits ................ 257,822 277,747 204,068 187,410 176,482
Time deposits .............. 257,047 212,433 178,853 136,352 137,997
--------- --------- --------- --------- ---------
Total deposits .......... $ 598,881 $ 578,557 $ 453,092 $ 386,157 $ 375,032
Funds borrowed ............. 68,544 23,328 15,000 15,000 31,000
Other liabilities .......... 6,053 6,598 3,525 2,330 2,171
--------- --------- --------- --------- ---------
Total liabilities ....... $ 673,478 $ 608,483 $ 471,617 $ 403,487 $ 408,203
Stockholders' equity ....... 49,545 48,498 47,080 46,351 29,966
--------- --------- --------- --------- ---------
Total liabilities and
stockholders' equity .. $ 723,023 $ 656,981 $ 518,697 $ 449,838 $ 438,169
========= ========= ========= ========= =========