EXHIBIT 99.1
------------
FOR FURTHER INFORMATION:
Gary L. Svec, CFO
PrivateBancorp, Inc.
312-683-7100
For Immediate Release
PRIVATEBANCORP REPORTS RECORD THIRD QUARTER EARNINGS
Diluted earnings per share up 60 percent over third quarter 2000
Total assets surpass $1 billion
Chicago, IL, October 22, 2001 -- PrivateBancorp, Inc. (NASDAQ: PVTB) today
reported that net income for the third quarter ended September 30, 2001 was
$1,591,000, or $0.32 per diluted share, an increase in diluted earnings per
share of 60 percent over third quarter 2000 net income of $968,000 or $0.20 per
diluted share. Compared to third quarter 2000 earnings of $0.28 per diluted
share adjusted to exclude the one-time severance charge recorded in the third
quarter 2000, diluted earnings per share for the third quarter 2001 increased 14
percent. Net income for the nine months ended September 30, 2001 was $4,282,000,
or $0.88 per diluted share, an increase in diluted earnings per share of 44
percent compared to net income of $2,915,000, or $0.61 per diluted share, for
the same period last year.
"We reached another milestone this quarter by exceeding $1 billion in total
assets, and we continued our emphasis on both loan and deposit growth across the
markets we serve. Our balance sheet growth as well as increases in noninterest
income including security gains have offset decreasing margins, resulting in
higher income as compared to the prior year third quarter," said Ralph B.
Mandell, Chairman, President and Chief Executive Officer.
"Although the September 11th attacks have exacerbated an already slowing
economy, we are confident that the market segments we serve are well positioned
to weather the effects of the
5
market downturn. While nonperforming assets have increased, our credit quality
is still strong, with nonperforming loans less than 1 percent of total loans,"
said Mandell.
Net interest income totaled $7.1 million in the third quarter of 2001, an
increase of 12 percent over the third quarter of 2000. Average earning assets
during the period were $940.4 million, an increase of 31 percent over the prior
year third quarter. Net interest margin (on a tax equivalent basis) was 3.19
percent in the third quarter of 2001, versus 3.59 percent in the prior year
third quarter and 3.28 percent in the second quarter of 2001. During the third
quarter of 2001, the Company's average cost of funds decreased to 4.39 percent
versus 5.77 percent in prior year quarter due primarily to a decrease in market
interest rates. The same market forces caused average interest-earning asset
yields to decrease to 7.18 percent from 8.77 percent in the prior year quarter.
Despite the 350 basis point decrease in the prime rate during the first three
quarters of 2001, our net interest margin has decreased only 40 basis points as
compared to the prior year quarter due to our interest rate risk management
strategies.
Noninterest income for the quarter grew to $1.2 million, reflecting an
increase of $475,000 or 64 percent over the third quarter of 2000. The increase
in noninterest income is attributable primarily to $365,000 of net gains on the
sale of investment securities. No securities were sold in the prior year
quarter. Banking, trust services and other income increased $110,000 over the
prior year quarter. Trust assets under administration decreased to $684.8
million at September 30, 2001 compared to $785.7 million at September 30, 2000,
a decrease of 13 percent, attributable primarily to declines in equity
valuations since the prior year quarter, which was partially offset by increases
in new business.
Noninterest expense increased to $5.4 million in the third quarter of 2001
from $4.7 million in the third quarter of 2000, adjusted to exclude the prior
year one-time severance charge.
6
In the quarter ended September 30, 2000, the Company incurred a one-time charge
of $562,000 pre-tax, reflecting expenses associated with severance packages for
former executives as well as costs incurred to secure their replacements. The
increase in noninterest expense between quarters reflects the growth of the
organization during the twelve-month period. The efficiency ratio improved to
60.6 percent in the third quarter of 2001 from 63.9 percent in the prior year
quarter, excluding the effect of the one-time severance charge.
At September 30, 2001, nonperforming loans as a percentage of total loans
were 0.90 percent, versus 0.37 percent at June 30, 2001 and 0.10 percent at
September 30, 2000. Net charge-offs totaled $183,000 in the quarter ended
September 30, 2001 versus $297,000 in the second quarter 2001 and $344,000 in
the year-earlier period. The provision for loan losses was $845,000 in the third
quarter of 2001, versus $738,000 in the second quarter 2001 and $383,000 in the
third quarter of 2000. The higher provision for loan losses is related to growth
in the Company's loan portfolio as well as increases in nonperforming loans.
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. The Company
operates two banking subsidiaries, The PrivateBank and Trust Company and The
PrivateBank (St. Louis). The Company, which had assets of $1.0 billion at
September 30, 2001, currently has banking offices in Chicago, Wilmette, Oak
Brook, St. Charles, Lake Forest, Winnetka, and Geneva, Illinois, and in St.
Louis, Missouri.
7
Additional information can be found in the Investor Relations section of
Private Bancorp, Inc.'s website at www.privatebk.com
Forward-Looking Statements: Statements contained in this news release that are
not historical facts may constitute forward-looking statements within the
meaning of Section 21E of the Securities Exchange Act of 1934, as amended. The
Company's ability to predict results or the actual effect of future plans or
strategies is inherently uncertain. Factors which could have a material adverse
effect on the operations and future prospects of the Company include, but are
not limited to, fluctuations in market rates of interest and loan and deposit
pricing, greater than anticipated deterioration in asset quality due to a
prolonged economic downturn in the greater Chicago and St. Louis metropolitan
areas, legislative or regulatory changes, adverse developments in the Company's
loan or investment portfolios, competition 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.
###
8
PRIVATEBANCORP, INC.
CONSOLIDATED STATEMENTS OF INCOME
(DOLLARS IN THOUSANDS EXCEPT PER SHARE DATA)
THREE MONTHS ENDED NINE MONTHS ENDED
SEPTEMBER 30, SEPTEMBER 30,
2001 2000 2001 2000
UNAUDITED UNAUDITED UNAUDITED UNAUDITED
INTEREST INCOME
Interest and fees on loans................. $12,832 $13,540 $38,856 $35,182
Interest on short term investments......... 23 357 231 822
Interest on investment securities.......... 3,704 1,813 10,233 4,741
------- ------- ------- -------
Total interest income................... 16,559 15,710 49,320 40,745
------- ------- ------- -------
INTEREST EXPENSE
Interest on deposits....................... 7,356 8,142 23,154 21,011
Interest on borrowings..................... 1,637 1,236 4,689 2,499
Interest on trust preferred securities..... 475 -- 1,219 --
------- ------- ------- -------
Total interest expense.................. 9,468 9,378 29,062 23,510
------- ------- ------- -------
Net interest income........................ 7,091 6,332 20,258 17,235
Provision for loan losses.................. 845 383 1,922 1,356
------- ------- ------- -------
Net interest income after provision........ 6,246 5,949 18,336 15,879
------- ------- ------- -------
NON INTEREST INCOME
Banking, trust services and other income... 855 745 2,687 2,126
Net securities gains....................... 365 -- 904 92
------- ------- ------- -------
Total non interest income............... 1,220 745 3,591 2,218
------- ------- ------- -------
NON INTEREST EXPENSE
Salaries and benefits...................... 2,303 2,211 6,592 5,906
Severance charge........................... -- 562 -- 562
Other operating expenses................... 2,842 2,248 8,843 6,723
Amortization of goodwill................... 206 206 618 525
------- ------- ------- -------
Total non interest expense.............. 5,351 5,227 16,053 13,716
------- ------- ------- -------
Income before income taxes................. 2,115 1,467 5,874 4,381
Income tax expense......................... 524 499 1,592 1,466
------- ------- ------- -------
Net income................................. $ 1,591 $ 968 $ 4,282 $ 2,915
======= ======= ======= =======
Weighted average shares O/S................ 4,714,506 4,627,873 4,681,651 4,606,394
Diluted average shares O/S................. 4,929,171 4,823,982 4,841,730 4,786,642
EARNINGS PER SHARE
Basic...................................... $0.34 $0.21 $0.91 $0.63
Diluted.................................... $0.32 $0.20 $0.88 $0.61
9
PRIVATEBANCORP, INC.
CONSOLIDATED BALANCE SHEETS
(DOLLARS IN THOUSANDS EXCEPT PER SHARE DATA)
UNAUDITED UNAUDITED
SEPTEMBER 30, 2001 SEPTEMBER 30, 2000
ASSETS
Cash and due from banks.......................................... $ 26,343 $ 21,815
Short term investments........................................... 2,959 4,060
Investment securities-AFS........................................ 279,319 132,814
Loans............................................................ 716,117 584,919
Allowance for loan losses........................................ (7,558) (5,991)
---------- --------
Net loans..................................................... 708,559 578,928
Premises and equipment........................................... 4,198 4,386
Goodwill......................................................... 11,011 11,835
Other assets..................................................... 9,586 9,977
---------- --------
Total assets.................................................. $1,041,975 $763,815
========== ========
LIABILITIES
Non-interest bearing deposits.................................... $ 68,789 $ 55,831
Interest bearing deposits........................................ 732,357 577,176
---------- --------
Total deposits................................................ 801,146 633,007
---------- --------
Borrowings....................................................... 137,956 71,258
Long-term debt - trust preferred securities...................... 20,000 --
Other liabilities................................................ 20,786 8,484
---------- --------
Total liabilities............................................. $ 979,888 $712,749
---------- --------
STOCKHOLDERS' EQUITY
Common stock and surplus......................................... $ 45,839 $ 44,731
Retained earnings................................................ 15,294 9,994
Accumulated other comprehensive income........................... 2,781 (1,830)
Deferred compensation............................................ (877) (879)
Loans to executive officers...................................... (950) (950)
---------- --------
Total stockholders' equity.................................... $ 62,087 $ 51,066
========== ========
Total liabilities and stockholders' equity.................... $1,041,975 $763,815
========== ========
Book value per share............................................. $13.07 $11.04
10
PRIVATEBANCORP, INC.
KEY FINANCIAL DATA
UNAUDITED
(DOLLARS IN THOUSANDS EXCEPT PER SHARE DATA)
3Q01 2Q01 1Q01 4Q00 3Q00
KEY STATISTICS
Earnings before one-time charges(1)..... $1,591 $1,358 $1,333 $1,510 $1,345
One-time charges (net of tax)(1)........ -- -- -- -- $377
Net income.............................. $1,591 $1,358 $1,333 $1,510 $968
Earnings before one-time charges per
diluted share........................ $0.32 $0.28 $0.28 $0.32 $0.28
One-time charges (per diluted share)(1). -- -- -- -- $0.08
Basic earnings per share................ $0.34 $0.29 $0.29 $0.33 $0.21
Diluted earnings per share.............. $0.32 $0.28 $0.28 $0.32 $0.20
Return on average total assets (before
one-time charges).................... 0.64% 0.60% 0.64% 0.77% 0.71%
Return on average total equity (before
one-time charges).................... 10.46% 9.46% 9.86% 11.35% 10.55%
Dividend payout ratio................... 8.94% 8.62% 8.79% 7.66% 11.97%
Non-interest income to average assets... 0.49% 0.57% 0.52% 0.48% 0.39%
Non-interest expense to average assets.. 2.16% 2.39% 2.55% 2.48% 2.76%
Net overhead ratio...................... 1.67% 1.82% 2.03% 2.00% 2.37%
Efficiency ratio excluding one-time
charges(2)........................... 60.6% 64.5% 67.8% 63.0% 63.9%
Net interest margin..................... 3.19% 3.28% 3.35% 3.60% 3.59%
Yield on average earning assets......... 7.18% 7.74% 8.39% 8.82% 8.77%
Cost of average paying liabilities...... 4.39% 4.92% 5.55% 5.82% 5.77%
Net interest spread..................... 2.79% 2.82% 2.84% 3.00% 3.00%
--------------
(1) One-time charges represent costs associated with 2000 third quarter severance charges.
(2) Ratio includes a tax equivalent adjustment for certain items in investment income.
11
PRIVATEBANCORP, INC.
KEY FINANCIAL DATA
UNAUDITED
(DOLLARS IN THOUSANDS EXCEPT PER SHARE DATA)
3Q01 2Q01 1Q01 4Q00 3Q00
BALANCE SHEET RATIOS
Loans to deposits (period end)......... 89.39% 88.84% 90.13% 89.43% 92.40%
Average interest-earning assets to
average interest-bearing liabilities 110.2 110.4 110.0 111.5 111.5
PER SHARE DATA
Dividends.............................. $0.030 $0.025 $0.025 $0.025 $0.025
Book value (period end)................ $13.07 $12.35 $12.15 $11.73 $11.04
Tangible book value (period end)....... $10.75 $9.96 $9.72 $9.22 $8.48
SHARE PRICE DATA
Closing price (period end)............. $15.9000 $16.2200 $15.9375 $9.1250 $13.8125
Diluted earnings multiple.............. 12.42x 14.46x 14.10x 7.22x 17.30x
Diluted earnings multiple before
one-time charges(1)................. 12.42x 14.46x 14.10x 7.22x 12.37x
Book value multiple.................... 1.22x 1.31x 1.31x 0.78x 1.25x
COMMON STOCK INFORMATION
Outstanding shares at end of period.... 4,750,124 4,680,668 4,685,768 4,623,532 4,623,532
NUMBER OF SHARES USED TO COMPUTE:
Basic earnings per share............... 4,714,506 4,681,655 4,648,061 4,623,532 4,627,873
Diluted earnings per share............. 4,929,171 4,855,083 4,783,400 4,749,636 4,823,982
CAPITAL RATIOS (PERIOD END)
Total equity to total assets........... 5.96% 6.12% 6.52% 6.53% 6.69%
Total risk-based capital ratio......... 10.55% 10.98% 10.97% 8.15% 8.51%
Tier-1 risk based capital ratio........ 8.88% 9.17% 9.12% 6.47% 6.72%
Leverage ratio......................... 6.99% 7.26% 7.60% 5.54% 5.54%
--------------
(1) One-time charges represent costs associated with 2000 third quarter severance charges.
12
PRIVATEBANCORP, INC.
KEY FINANCIAL DATA
UNAUDITED
(DOLLARS IN THOUSANDS)
3Q01 2Q01 1Q01 4Q00 3Q00
SUMMARY INCOME STATEMENT
INTEREST INCOME
Loans, including fees.............................. $12,832 $12,963 $13,061 $13,451 $13,540
Short term investments............................. 23 31 177 236 357
Securities......................................... 3,704 3,327 3,202 2,714 1,813
------- ------- ------- ------- -------
Total interest income........................... 16,559 16,321 16,440 16,401 15,710
Interest expense................................... 9,468 9,615 9,979 9,821 9,378
------- ------- ------- ------- -------
Net interest income................................ 7,091 6,706 6,461 6,580 6,332
Provision for loan losses.......................... 845 738 339 334 383
------- ------- ------- ------- -------
Net interest income after provision for loan
losses....................................... 6,246 5,968 6,122 6,246 5,949
------- ------- ------- ------- -------
NON-INTEREST INCOME
Banking, trust services and other income........... 855 938 894 951 745
Net Securities gains............................... 365 353 186 -- --
------- ------- ------- ------- -------
Total non-interest income....................... 1,220 1,291 1,080 951 745
------- ------- ------- ------- -------
NON-INTEREST EXPENSE
Salaries and employee benefits..................... 2,303 1,855 2,434 2,268 2,211
Severance charge................................... -- -- -- -- 562
Goodwill........................................... 206 206 206 206 206
Occupancy expense.................................. 985 960 888 807 803
Other non-interest expense......................... 1,857 2,388 1,765 1,609 1,445
------- ------- ------- ------- -------
Total non-interest expense...................... 5,351 5,409 5,293 4,890 5,227
------- ------- ------- ------- -------
Income before income taxes......................... 2,115 1,850 1,909 2,307 1,467
Provision for income taxes......................... 524 492 576 797 499
------- ------- ------- ------- -------
Net income...................................... $ 1,591 $ 1,358 $ 1,333 $ 1,510 $ 968
======= ======= ======= ======= =======
13
PRIVATEBANCORP, INC.
KEY FINANCIAL DATA
UNAUDITED
(DOLLARS IN THOUSANDS)
3Q01 2Q01 1Q01 4Q00 3Q00
CREDIT QUALITY
NON-PERFORMING ASSETS:
Loans delinquent over 90 days................... $3,766 $ 938 $2,847 $1,421 $ 242
Nonaccrual loans................................ 2,658 1,504 117 24 324
Other real estate............................... 62 -- -- -- --
------ ------ ------ ------ ------
Total non-performing assets.................. $6,486 $2,442 $2,964 $1,445 $ 566
====== ====== ====== ====== ======
NET LOAN CHARGE-OFFS (RECOVERIES):
Loans charged off............................... $ 199 $ 332 $ -- $ 225 $ 346
Recoveries...................................... 16 35 8 8 2
------ ------ ------ ------ ------
Net charge-offs (recoveries)................. $ 183 $ 297 $ (8) $ 217 $ 344
====== ====== ====== ====== ======
Provision for loan losses....................... $ 845 $ 738 $ 339 $ 334 $ 383
====== ====== ====== ====== ======
KEY RATIOS
Net charge-offs (recoveries) to average loans... 0.10% 0.18% -0.01% 0.15% 0.23%
Total non-performing loans to total loans....... 0.90% 0.37% 0.47% 0.24% 0.10%
Total non-performing assets to total assets..... 0.62% 0.26% 0.34% 0.17% 0.07%
Allowance for loan losses to:
Total loans.................................. 1.06% 1.03% 1.03% 1.02% 1.02%
Non-performing loans......................... 118% 282% 218% 423% 1,058%
LOAN LOSS RESERVE SUMMARY
Balance at beginning of period.................. $6,896 $6,455 $6,108 $5,991 $5,951
Provision....................................... 845 738 339 334 383
Net charge-offs (recoveries).................... 183 297 (8) 217 343
------ ------ ------ ------ ------
Ending loan loss reserve..................... $7,558 $6,896 $6,455 $6,108 $5,991
====== ====== ====== ====== ======
NET LOAN CHARGE-OFFS (RECOVERIES):
Commercial real estate.......................... -- -- -- -- --
Residential real estate......................... -- -- -- -- --
Commercial...................................... $ 185 $ 276 $ (3) -- $ 343
Personal........................................ (2) 21 (5) $ 217 --
Home equity..................................... -- -- -- -- --
Construction.................................... -- -- -- -- --
------ ------ ------ ------ ------
Total net loan charge-offs (recoveries)...... $ 183 $ 297 $ (8) $ 217 $ 343
====== ====== ====== ====== ======
14
PRIVATEBANCORP, INC.
BALANCE SHEETS
(DOLLARS IN THOUSANDS)
UNAUDITED
SEPTEMBER UNAUDITED UNAUDITED UNAUDITED
30, JUNE 30, MARCH 31, DECEMBER 31, SEPTEMBER 30,
2001 2001 2001 2000 2000
ASSETS
Cash and due from banks... $ 26,343 $ 28,515 $ 18,045 $ 28,637 $ 21,815
Federal funds sold........ 2,959 7,305 81 11,876 4,060
Investment
securities-available
for sale............... 279,319 224,505 210,840 172,194 132,814
Loans..................... 716,117 666,710 626,900 599,429 584,919
Less: Allowance for
loan losses......... (7,558) (6,896) (6,455) (6,108) (5,991)
---------- -------- -------- -------- --------
Net loans.............. 708,559 659,814 620,445 593,321 578,928
---------- -------- -------- -------- --------
Premises and equipment,
net.................... 4,198 4,260 3,924 4,138 4,386
Goodwill.................. 11,011 11,217 11,423 11,629 11,835
Other assets.............. 9,586 9,271 8,935 7,714 9,977
---------- -------- -------- -------- --------
Total assets........ $1,041,975 $944,887 $873,693 $829,509 $763,815
========== ======== ======== ======== ========
LIABILITIES AND
STOCKHOLDERS' EQUITY
Non-interest bearing
deposits............... $ 68,789 $ 65,373 $ 52,286 $ 61,789 $ 55,831
Interest bearing demand
deposits............... 45,711 44,436 37,213 51,301 37,747
Savings and money market
deposits............... 361,563 302,258 301,569 300,107 274,025
Time deposits............. 325,083 338,427 304,503 257,049 265,404
---------- -------- -------- -------- --------
Total deposits......... 801,146 750,494 695,571 670,246 633,007
Funds borrowed............ 137,956 106,128 90,397 96,879 71,258
Long-term debt - trust
preferred securities... 20,000 20,000 20,000 -- --
Other liabilities......... 20,786 10,439 10,779 8,135 8,484
---------- -------- -------- -------- --------
Total liabilities...... 979,888 887,061 816,747 775,260 712,749
Stockholders' equity...... 62,087 57,826 56,946 54,249 51,066
---------- -------- -------- -------- --------
Total liabilities and
stockholders' equity $1,041,975 $944,887 $873,693 $829,509 $763,815
========== ======== ======== ======== ========
15
PRIVATEBANCORP, INC.
YEAR-TO-DATE AVERAGE BALANCE SHEETS
(UNAUDITED, DOLLARS IN THOUSANDS)
YEAR-TO-DATE YEAR-TO-DATE
SEPTEMBER 30, 2001 SEPTEMBER 30, 2000
AVERAGE ASSETS
Cash and due from banks.......................................... $ 22,256 $ 17,849
Short term investments........................................... 5,790 18,026
Investment securities............................................ 217,888 97,561
Loans............................................................ 647,181 528,150
Less: Allowance for loan losses................................. (6,757) (5,675)
-------- --------
Net loans........................................................ 640,424 522,475
-------- --------
Premises and equipment........................................... 4,170 3,624
Goodwill......................................................... 11,336 9,707
Other assets..................................................... 10,157 8,121
-------- --------
Total average assets............................................. $912,021 $677,363
======== ========
AVERAGE LIABILITIES AND STOCKHOLDERS' EQUITY
Non-interest bearing deposits.................................... $ 57,023 $ 47,654
Interest bearing demand deposits................................. 43,098 36,821
Savings and money market deposits................................ 311,285 263,224
Time deposits.................................................... 307,456 226,118
-------- --------
Total average deposits........................................... 718,862 573,817
Funds borrowed................................................... 109,276 48,501
Long-term debt - trust preferred securities...................... 17,216 --
Other liabilities................................................ 8,971 5,812
-------- --------
Total average liabilities........................................ 854,325 628,130
Average stockholders' equity..................................... 57,696 49,233
-------- --------
Average total liabilities and stockholders' equity............... $912,021 $677,363
======== ========
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PRIVATEBANCORP, INC.
AVERAGE QUARTERLY BALANCE SHEETS
(UNAUDITED, DOLLARS IN THOUSANDS)
QUARTER ENDED QUARTER ENDED
SEPTEMBER 30, 2001 SEPTEMBER 30, 2000
AVERAGE ASSETS
Cash and due from banks......................................... $ 22,483 $ 19,051
Short term investments.......................................... 2,429 21,560
Investment securities........................................... 250,979 109,855
Loans........................................................... 690,404 583,800
Less: Allowance for loan losses................................ (7,248) (6,092)
-------- --------
Net loans....................................................... 683,156 577,708
-------- --------
Premises and equipment.......................................... 4,308 4,013
Goodwill........................................................ 11,132 11,953
Other assets.................................................... 9,757 8,472
-------- --------
Total average assets............................................ $984,244 $752,612
======== ========
AVERAGE LIABILITIES AND STOCKHOLDERS' EQUITY
Non-interest bearing deposits................................... $ 62,141 $ 51,208
Interest bearing demand deposits................................ 43,311 39,909
Savings and money market deposits............................... 336,297 267,926
Time deposits................................................... 328,172 269,056
-------- --------
Total average deposits.......................................... 769,921 628,099
Funds borrowed.................................................. 125,623 66,588
Long-term debt - trust preferred securities..................... 20,000 --
Other liabilities............................................... 8,380 7,236
-------- --------
Total average liabilities....................................... 923,924 701,923
Average stockholders' equity.................................... 60,320 50,689
-------- --------
Average total liabilities and stockholders' equity.............. $984,244 $752,612
======== ========
17