EXHIBIT 99.1
[LOGO]
FOR FURTHER INFORMATION:
Dennis Klaeser, CFO
PrivateBancorp, Inc.
312-683-7100
For Immediate Release
PRIVATEBANCORP REPORTS RECORD FIRST QUARTER EARNINGS
Earnings per share up 32 percent over first quarter 2003
Announces Plans to open a new Gold Coast Office and Acquire a
Mortgage Banking Company
Chicago, IL, April 19, 2004--PrivateBancorp, Inc. (NASDAQ: PVTB)
today reported that earnings per share increased 32 percent to $0.58 per diluted
share for the first quarter 2004 compared to first quarter 2003 earnings per
diluted share of $0.44. Net income for the first quarter ended March 31, 2004
was $6.0 million, an increase of 65 percent over first quarter 2003 net income
of $3.6 million.
"Our record results reflect continued focus on our strategy and strong
financial performance throughout the Company," said Ralph B. Mandell, Chairman,
President and CEO. "Quality asset growth drove significant increases in net
interest income. Loans increased over 30 percent from last year's first
quarter-end and nearly 10 percent from year-end 2003, while nonperforming loans
as a percentage of total loans fell to 0.06%. Continued growth in our wealth
management business contributed to significantly higher non-interest income
compared to a year ago with assets under management in excess of $1.5 billion at
quarter's end."
The Company also announced that it has signed a letter of intent for
the site of a new Chicago banking office in the historic Palmolive Building at
the corner of North Michigan Avenue and Walton Place in Chicago's affluent Gold
Coast neighborhood. The second floor site occupies a total of 4,800 square feet
and will have a private first floor entry on Walton Place. The Palmolive
Building, one of the city's most recognized landmarks, is a major adaptive reuse
development with construction underway to transform most of the building into
luxury condominiums. Based upon the current construction schedule, the Company
expects to open this new office late this year.
The Company also announced that it has entered into a letter of intent
to acquire Corley Financial Corporation, a Chicago-based, mortgage banking
boutique that originated approximately $180.0 million in single-family
residential loans in 2003. The PrivateBank currently outsources its processing
of residential mortgage loans to Corley Financial in a business relationship
that was established over three years ago. The Company anticipates that Corley
Financial will be maintained as a separate subsidiary of PrivateBancorp, Inc.
and that it will operate under the name The PrivateBank Mortgage Company after
the consummation of the transaction. James F. Brady, the current owner and CEO
of Corley Financial, will be appointed as a Managing Director and head the unit.
The Company expects the transaction, which
1
is subject to definitive documentation and regulatory approval, to be slightly
accretive to earnings per share in 2004.
"We are excited about growth opportunities in Chicago and St. Louis,
and expect our Gold Coast banking office will enable us to more effectively
serve the affluent communities in Chicago's near north area," said Mandell. The
Corley acquisition will allow us to better serve our clients and lower our costs
in mortgage origination, while adding highly experienced mortgage lenders to our
client service teams. We also continue to actively explore attractive
opportunities to expand our geographic footprint," added Mandell.
Separately, the Company announced that it has accepted the resignation
of John Gorman as director, effective April 16, 2004. Mr. Gorman, a director of
PrivateBancorp, Inc. and PrivateBank since 1994, is in the process of acquiring
a bank in down-state Illinois and felt it was in the best interests of the
Company that he step down from both Boards so as to avoid any potential for
conflicts of interest. "I would like to publicly thank John Gorman for his
service to our Company and our fellow shareholders as a member of our Board of
Directors over the past 10 years. While we are sorry to lose John as a director,
he remains a friend and a valued client of our Company," said Mandell.
Net interest income totaled $17.6 million in the first quarter 2004, an
increase of 35 percent over first quarter 2003 net interest income of $13.0
million, primarily due to growth in average earning assets and improved net
interest margin compared to the year earlier period. Average earning assets
during the period were $1.9 billion, compared to $1.5 billion in the prior year
quarter, an increase of 27 percent. Compared to the fourth quarter 2003, average
earning assets increased by $118.0 million, or 7 percent during the first
quarter 2004. Net interest margin (on a tax equivalent basis) was 3.80 percent
in the first quarter 2004, up from 3.68 percent in the prior year first quarter
and down from 3.82 percent in the fourth quarter 2003. The change in our net
interest margin on a quarter linked basis is largely due to the decrease in the
dividend paid on our Federal Home Loan Bank stock investment, which was 6.5
percent in the first quarter 2004 as compared to 7.0 percent in the fourth
quarter 2003.
During the first quarter 2004, we continued our focus of lengthening
the maturities of our funding sources. As part of this strategy, we increased
the amount of brokered deposits that have maturities of three years or greater
from $32.0 million, or 7 percent of all brokered deposits, at December 31, 2003,
to $65.0 million, or 15 percent of brokered deposits, at March 31, 2004. Our
strategy to add longer-term funding sources will slightly compress net interest
margin in the second quarter but should have a positive impact in future
quarters if market interest rates continue to rise.
The provision for loan losses was $1.3 million for the first quarter
2004, compared to $956,000 in the prior year first quarter and $1.6 million in
the fourth quarter 2003. Net recoveries totaled $103,000 in the quarter ended
March 31, 2004 versus net charge-offs of $70,000 in the prior year quarter and
net charge-offs of $360,000 in the fourth quarter 2003. The allowance for loan
losses as a percentage of total loans was 1.23 percent as of March 31, 2004
compared to 1.22 percent at March 31, 2003 and unchanged from 1.23 percent at
December 31, 2003.
Non-interest income was $2.9 million in the first quarter 2004,
reflecting an increase of approximately $0.5 million or 21 percent from the
first quarter 2003. The increase in fee income was primarily attributable to
increases in wealth management fee revenue, while the increases in securities
gains were more than offset by increased losses resulting from the fair market
value adjustment of an interest rate swap. During the first quarter 2004, the
company recognized securities gains of $998,000, compared to losses of $55,000
in the first quarter 2003. Non-interest income for the first quarter 2004
reflects the fair market value adjustment on a $25.0 million 10-year treasury
rate for 3-month LIBOR interest rate swap, which resulted in losses of $1.1
million during the first quarter 2004, versus losses of $230,000 in the first
quarter 2003.
2
Wealth management assets under management increased 31 percent to
$1.576 billion at March 31, 2004 compared to $1.204 billion at March 31, 2003.
At December 31, 2003, wealth management assets under management totaled $1.5
billion. Wealth management fee income was $2.0 million during the quarter as
compared to $1.5 million in the year ago quarter and $1.9 million in the fourth
quarter 2003. Increased wealth management fee income, resulting from growth in
assets under management, more than offset declines in residential mortgage fee
income. Residential mortgage fee income was approximately $464,000 for the first
quarter 2004 compared to $782,000 in the first quarter 2003 and $451,000 in the
fourth quarter 2003.
Non-interest expense increased to $10.5 million in the first quarter
2004 from $9.4 million in the first quarter 2003. The 12 percent increase in
non-interest expense between periods is attributable to increases in personnel
costs associated with our growing client service team. We have continued to add
qualified, experienced managing directors to our team to ensure the future
growth of the organization. Full-time equivalent employees increased to 225 from
194 a year ago. The efficiency ratio improved to 49.1 percent in the first
quarter 2004 from 58.5 percent in the prior year's quarter and 50.1 percent in
the fourth quarter 2004.
Loans outstanding increased to $1.3 billion at March 31, 2004,
reflecting growth of 33 percent over the $1.0 billion in loans outstanding at
March 31, 2003. Loans outstanding as of March 31, 2004 increased by 10 percent
from December 31, 2003 loans outstanding of $1.2 billion. At March 31, 2004,
nonperforming loans as a percentage of total loans were 0.06 percent, versus
0.09 percent at December 31, 2003 and 0.35 percent at March 31, 2003. At March
31, 2004, nonaccrual loans as a percentage of total loans were 0.01 percent,
versus 0.003 percent at December 31, 2003 and 0.15 percent at March 31, 2003.
Deposits increased by 19 percent to $1.6 billion during the first
quarter 2004 as compared to total deposits of $1.4 billion at March 31, 2003.
Total deposits increased at a rate of 5 percent during the first quarter to $1.6
billion, compared to total deposits of $1.5 billion as of December 31, 2003.
Brokered deposits were $426.0 million at March 31, 2004, a decrease of 5 percent
or $22.0 million from $447.9 million at December 31, 2003 and an increase of 10
percent or $39.0 million from $387.0 million at March 31, 2003.
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 PrivateBank and Trust Company
subsidiary has a controlling interest in a Chicago-based investment advisor,
Lodestar Investment Counsel, LLC. The Company, which had assets of $2.1 billion
at March 31, 2004, currently has banking offices in Chicago, Wilmette, Oak
Brook, St. Charles, Lake Forest, Winnetka, and Geneva, Illinois, and in St.
Louis, Missouri.
Additional information can be found in the Investor Relations section
of PrivateBancorp, Inc.'s website at www.privatebancorp.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, unanticipated difficulties in signing and closing the Corley
Financial transaction or unexpected difficulties in integrating
3
or operating the mortgage banking business, unanticipated construction delays
relating to our new office to be located in the Palmolive Building, competition
and the possible dilutive effect of potential acquisitions, expansion or future
capital raises. These risks and uncertainties should be considered in evaluating
forward-looking statements and undue reliance should not be placed on such
statements. The Company assumes no obligation to update publicly any of these
statements in light of future events.
Editor's Note: Financial highlights attached.
###
4
PRIVATEBANCORP, INC.
CONSOLIDATED STATEMENTS OF INCOME
(DOLLARS IN THOUSANDS EXCEPT PER SHARE DATA)
THREE MONTHS ENDED
MARCH 31,
----------------------------
2004 2003
--------- ---------
UNAUDITED UNAUDITED
INTEREST INCOME
Interest and fees on loans................................. $ 17,680 $ 15,167
Interest on investment securities.......................... 7,929 5,379
Interest on short-term investments......................... 6 25
----------- ----------
Total interest income................................... 25,615 19,613
----------- ----------
INTEREST EXPENSE
Interest on deposits....................................... 6,093 5,777
Interest on borrowings..................................... 1,486 1,312
Interest on long-term debt -- Trust Preferred Securities... 485 485
----------- ----------
Total interest expense.................................. 8,064 7,574
----------- ----------
NET INTEREST INCOME 17,551 12,997
Provision for loan losses.................................. 1,326 956
----------- ----------
Net interest income after provision........................ 16,225 12,041
----------- ----------
NON-INTEREST INCOME
Banking, wealth management services and other income....... 2,980 2,701
Net securities gains (losses).............................. 998 (55)
Losses on interest rate swap............................... (1,066) (230)
----------- ----------
Total non-interest income.................................. 2,912 2,416
----------- ----------
NON-INTEREST EXPENSE
Salaries and benefits...................................... 6,035 4,778
Other operating expenses................................... 4,462 4,599
Amortization of intangibles................................ 42 42
----------- ----------
Total non-interest expense................................. 10,539 9,419
----------- ----------
Minority interest expense.................................. 67 38
----------- ----------
Income before income taxes................................. 8,531 5,000
----------- ----------
Income tax expense......................................... 2,581 1,397
----------- ----------
NET INCOME................................................. $ 5,950 $ 3,603
=========== ==========
WEIGHTED AVERAGE SHARES O/S................................ 9,730,567 7,600,804
DILUTED AVERAGE SHARES O/S................................. 10,307,347 8,142,210
EARNINGS PER SHARE
Basic...................................................... $ 0.61 $ 0.47
Diluted.................................................... $ 0.58 $ 0.44
NOTE 1: Certain reclassifications have been made to prior period statements
to place them on a basis comparable with the current period financial
statements.
5
PRIVATEBANCORP, INC.
CONSOLIDATED BALANCE SHEETS
(DOLLARS IN THOUSANDS EXCEPT PER SHARE DATA)
3/31/04 12/31/03 3/31/03
--------- ---------- ---------
UNAUDITED AUDITED UNAUDITED
ASSETS
Cash and due from banks.............................. $ 60,047 $ 49,115 $ 46,643
Short-term investments............................... 1,224 985 7,415
Investment securities -- available for sale.......... 692,678 669,262 505,877
Loans held for sale.................................. 4,133 4,420 12,591
Loans................................................ 1,344,706 1,224,657 1,018,196
Allowance for loan losses............................ (16,529) (15,100) (12,471)
---------- ---------- ----------
Net loans......................................... 1,328,177 1,209,557 1,005,725
Premises and equipment, net.......................... 5,924 6,233 6,516
Goodwill............................................. 19,242 19,242 19,242
Other assets......................................... 27,669 26,109 24,986
---------- ---------- ----------
Total Assets...................................... $2,139,094 $1,984,923 $1,628,995
========== ========== ==========
LIABILITIES
Non-interest bearing deposits........................ $ 153,197 $ 135,110 $ 88,243
Interest bearing deposits............................ 1,469,702 1,412,249 1,277,101
---------- ---------- ----------
Total deposits.................................... 1,622,899 1,547,359 1,365,344
---------- ---------- ----------
Funds borrowed....................................... 297,537 219,563 124,933
Long-term debt -- Trust Preferred Securities......... 20,000 20,000 20,000
Other liabilities.................................... 24,617 31,045 23,345
---------- ---------- ----------
Total Liabilities................................. 1,965,053 1,817,967 1,533,622
---------- ---------- ----------
STOCKHOLDERS' EQUITY
Common stock and additional paid-in-capital.......... 114,633 113,650 53,356
Retained earnings.................................... 51,545 46,193 31,076
Accumulated other comprehensive income............... 10,770 9,909 11,403
Deferred compensation................................ (2,907) (2,796) (462)
---------- ---------- ----------
Total Stockholders' Equity........................... 174,041 166,956 95,373
---------- ---------- ----------
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY........... $2,139,094 $1,984,923 $1,628,995
========== ========== ==========
BOOK VALUE PER SHARE................................. $ 17.44 $ 16.94 $ 12.29
NOTE 1: Certain reclassifications have been made to prior period statements
to place them on a basis comparable with the current period financial
statements.
6
PRIVATEBANCORP, INC.
KEY FINANCIAL DATA
UNAUDITED
(DOLLARS IN THOUSANDS EXCEPT PER SHARE DATA)
1Q04 4Q03 3Q03 2Q03 1Q03
-------- -------- -------- -------- --------
KEY STATISTICS
Net income................................... $ 5,950 $ 5,723 $ 5,130 $ 4,613 $ 3,603
Basic earnings per share..................... $ 0.61 $ 0.59 $ 0.57 $ 0.60 $ 0.47
Diluted earnings per share................... $ 0.58 $ 0.56 $ 0.54 $ 0.56 $ 0.44
Return on average total assets............... 1.17% 1.19% 1.15% 1.10% 0.92%
Return on average total equity............... 13.87% 14.03% 14.57% 18.81% 15.49%
Dividend payout ratio........................ 10.03% 6.89% 7.67% 6.75% 8.62%
Non-interest income to average assets........ 0.57% 0.63% 0.92% 1.06% 0.62%
Non-interest expense to average assets....... 2.08% 2.16% 2.38% 2.33% 2.41%
Net overhead ratio(1)........................ 1.51% 1.53% 1.46% 1.27% 1.80%
Efficiency ratio(2).......................... 49.1% 50.1% 53.9% 55.0% 58.5%
Net interest margin(3)....................... 3.80% 3.82% 3.64% 3.33% 3.68%
Yield on average earning assets.............. 5.46% 5.48% 5.37% 5.30% 5.73%
Cost of average interest-bearing liabilities. 1.89% 1.88% 1.94% 2.14% 2.20%
Net interest spread(4)....................... 3.57% 3.60% 3.43% 3.16% 3.53%
Tax equivalent adjustment to net interest
income(5)................................. $ 1,017 $ 925 $ 772 $ 742 $ 695
<FN>
- ------------------
(1) Non-interest expense less non-interest income divided by average total
assets.
(2) Non-interest expense divided by the sum of net interest income, on a
tax equivalent basis, plus non-interest income.
(3) Net interest income, on a tax equivalent basis, divided by average
interest-earning assets.
(4) Yield on average interest-earning assets less rate on average
interest-bearing liabilities.
(5) The company adjusts GAAP reported net interest income by the tax
equivalent adjustment amount to account for the tax attributes on
federally tax exempt municipal securities. For GAAP purposes, tax
benefits associated with federally tax exempt municipal securities are
recorded as a benefit in income tax expense. The following table
reconciles reported net interest income to net interest income on a tax
equivalent basis for the periods presented:
RECONCILIATION OF NET INTEREST INCOME TO NET INTEREST
INCOME ON A TAX EQUIVALENT BASIS
--------------------------------------------------------
1Q04 4Q03 3Q03 2Q03 1Q03
------- ------- ------- ------- -------
Net interest income....................... $17,551 $16,772 $14,813 $12,558 $12,997
Tax equivalent adjustment to net interest
income................................. 1,017 925 772 742 695
------- ------- ------- ------- -------
Net interest income, tax equivalent basis. $18,568 $17,697 $15,585 $13,300 $13,692
------- ------- ------- ------- -------
</FN>
7
PRIVATEBANCORP, INC.
KEY FINANCIAL DATA
UNAUDITED
(DOLLARS IN THOUSANDS EXCEPT PER SHARE DATA)
1Q04 4Q03 3Q03 2Q03 1Q03
-------- -------- -------- -------- --------
BALANCE SHEET RATIOS
Loans to deposits (period end)............... 82.86% 79.14% 76.67% 73.83% 74.57%
Average interest-earning assets to average
interest-bearing liabilities.............. 113.5 113.9 112.4 108.2 107.1
PER SHARE DATA
Dividends.................................... $0.06 $0.04 $0.04 $0.04 $0.04
Book value (period end)...................... $17.44 $16.94 $16.37 $12.89 $12.29
Tangible book value (period end)(1).......... $15.28 $14.75 $14.17 $10.10 $9.49
SHARE PRICE DATA (PERIOD END)
Closing price................................ $51.60 $45.29 $33.11 $27.27 $22.95
Diluted earnings multiple(2)................. 22.18 20.38 15.45 12.14 12.86
Book value multiple.......................... 2.96 2.67 2.02 2.12 1.87
COMMON STOCK INFORMATION
Outstanding shares at end of period.......... 9,977,424 9,853,664 9,840,034 7,787,034 7,762,014
NUMBER OF SHARES USED TO COMPUTE:
Basic earnings per share..................... 9,730,567 9,660,655 9,009,234 7,649,749 7,600,804
Diluted earnings per share................... 10,307,347 10,290,510 9,574,802 8,174,011 8,142,210
CAPITAL RATIOS (PERIOD END)(3):
Total equity to total assets................. 8.14% 8.41% 8.68% 5.70% 5.85%
Total risk-based capital ratio............... 12.14% 12.71% 12.88% 8.37% 8.30%
Tier-1 risk-based capital ratio.............. 11.01% 11.59% 11.79% 7.06% 6.99%
Leverage ratio............................... 8.03% 8.25% 8.52% 5.23% 5.27%
<FN>
- ------------------
(1) Tangible book value is total capital less goodwill and other intangibles
divided by outstanding shares at end of period.
(2) Period end closing stock price divided by annualized quarterly earnings
for the quarter then ended.
(3) Capital ratios for the most recent period presented in the press release
are based on preliminary data.
</FN>
8
PRIVATEBANCORP, INC.
KEY FINANCIAL DATA
UNAUDITED
(DOLLARS IN THOUSANDS)
1Q04 4Q03 3Q03 2Q03 1Q03
-------- -------- -------- -------- --------
SUMMARY INCOME STATEMENT
INTEREST INCOME
Interest on fees on loans................. $17,680 $16,588 $15,830 $15,208 $15,167
Interest on investment securities......... 7,929 7,773 6,333 5,148 5,379
Interest on short-term investments........ 6 6 6 31 25
------- ------- ------- ------- -------
Total interest income.................. 25,615 24,367 22,169 20,387 20,571
INTEREST EXPENSE.......................... 8,064 7,595 7,356 7,829 7,574
------- ------- ------- ------- -------
NET INTEREST INCOME ...................... 17,551 16,772 14,813 12,558 12,997
Provision for loan losses................. 1,326 1,595 1,092 730 956
------- ------- ------- ------- -------
NET INTEREST INCOME AFTER PROVISION FOR
LOAN LOSSES............................ 16,225 15,177 13,721 11,828 12,041
------- ------- ------- ------- -------
NON INTEREST INCOME
Banking, wealth management services and
other income........................... 2,980 2,889 3,657 3,181 2,701
Net securities gains (losses)............. 998 (163) (333) 2,310 (55)
(Losses) gains on interest rate swap...... (1,066) 280 765 (1,054) (230)
------- ------- ------- ------- -------
Total non-interest income.............. 2,912 3,006 4,089 4,437 2,416
------- ------- ------- ------- -------
NON INTEREST EXPENSE
Salaries and benefits..................... 6,035 5,670 5,338 5,070 4,778
Amortization of intangible................ 42 42 42 42 42
Occupancy expense......................... 1,360 1,472 1,403 1,270 1,419
Other operating expenses.................. 3,102 3,182 3,820 3,374 3,180
------- ------- ------- ------- -------
Total non-interest expense............. 10,539 10,366 10,603 9,756 9,419
------- ------- ------- ------- -------
Minority interest expense................. 67 52 59 44 38
------- ------- ------- ------- -------
INCOME BEFORE INCOME TAXES................ 8,531 7,765 7,148 6,465 5,000
Income tax expense........................ 2,581 2,042 2,018 1,852 1,397
------- ------- ------- ------- -------
NET INCOME................................ $ 5,950 $ 5,723 $ 5,130 $ 4,613 $ 3,603
======= ======= ======= ======= =======
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PRIVATEBANCORP, INC.
KEY FINANCIAL DATA
UNAUDITED
(DOLLARS IN THOUSANDS)
1Q04 4Q03 3Q03 2Q03 1Q03
-------- -------- -------- -------- --------
CREDIT QUALITY
KEY RATIOS
Net charge-offs (recoveries) to average
loans................................. -0.03% 0.12% 0.09% 0.07% 0.03%
Total non-performing loans to total loans 0.06% 0.09% 0.17% 0.26% 0.35%
Total non-performing assets to total
assets................................ 0.04% 0.06% 0.10% 0.16% 0.22%
Nonaccrual loans to:
Total loans........................... 0.01% 0.00% 0.05% 0.08% 0.15%
Total assets.......................... 0.01% 0.00% 0.03% 0.05% 0.09%
Allowance for loan losses to:
Total loans........................... 1.23% 1.23% 1.23% 1.22% 1.22%
Non-performing loans.................. 1954% 1343% 723% 476% 355%
Nonaccrual loans...................... 12626% 41369% 2681% 1465% 841%
NON-PERFORMING ASSETS:
Loans delinquent over 90 days............ $ 715 $ 1,088 $ 1,401 $ 1,849 $ 2,032
Nonaccrual loans......................... 131 36 517 889 1,483
------- ------- ------- ------- -------
Total non-performing assets........... $ 846 $ 1,124 $ 1,918 $ 2,738 $ 3,515
======= ======= ======= ======= =======
NET LOAN CHARGE-OFFS (RECOVERIES):
Loans charged off........................ $ 5 $ 367 $ 335 $ 435 $ 81
Recoveries............................... 108 7 89 253 11
------- ------- ------- ------- -------
Net charge-offs (recoveries)............. $ (103) $ 360 $ 246 $ 182 $ 70
======= ======= ======= ======= =======
PROVISION FOR LOAN LOSSES................ $ 1,326 $ 1,595 $ 1,092 $ 730 $ 956
======= ======= ======= ======= =======
ALLOWANCE FOR LOAN LOSSES SUMMARY
Balance at beginning of period........... $15,100 $13,865 $13,019 $12,471 $11,585
Provision................................ 1,326 1,595 1,092 730 956
Net charge-offs (recoveries)............. (103) 360 246 182 70
------- ------- ------- ------- -------
Balance at end of period................. $16,529 $15,100 $13,865 $13,019 $12,471
======= ======= ======= ======= =======
NET LOAN CHARGE-OFFS (RECOVERIES):
Commercial real estate................... -- -- -- -- --
Residential real estate.................. -- -- -- -- --
Commercial............................... $ (105) $ 312 $ 327 $ 92 $ 1
Personal................................. 2 48 (81) 90 69
Home equity.............................. -- -- -- -- --
Construction............................. -- -- -- -- --
------- ------- ------- ------- -------
Total net loan charge-offs (recoveries).. $ (103) $ 360 $ 246 $ 182 $ 70
======= ======= ======= ======= =======
10
PRIVATEBANCORP, INC.
BALANCE SHEETS
(DOLLARS IN THOUSANDS)
UNAUDITED AUDITED UNAUDITED UNAUDITED UNAUDITED
3/31/04 12/31/03 09/30/03 6/30/03 3/31/03
--------- --------- ---------- ---------- ---------
ASSETS
Cash and due from banks............. $ 60,047 $ 49,115 $ 33,551 $ 51,771 $ 46,643
Short-term investments.............. 1,224 985 1,999 9,145 7,415
Investment securities -- available
for sale......................... 692,678 669,262 647,433 581,743 505,877
Loans held for sale................. 4,133 4,420 5,554 12,570 12,591
Loans............................... 1,344,706 1,224,657 1,131,706 1,066,919 1,018,196
Less: Allowance for loan
losses........................ (16,529) (15,100) (13,865) (13,019) (12,471)
---------- ---------- ---------- ---------- ----------
Net loans........................ 1,328,177 1,209,557 1,117,841 1,054,189 1,005,725
---------- ---------- ---------- ---------- ----------
Premises and equipment, net......... 5,924 6,233 6,334 6,284 6,516
Goodwill............................ 19,242 19,242 19,242 19,242 19,242
Other assets........................ 27,669 26,109 25,149 25,020 24,986
---------- ---------- ---------- ---------- ----------
Total Assets..................... $2,139,094 $1,984,923 $1,857,103 $1,759,676 $1,628,995
========== ========== ========== ========== ==========
LIABILITIES AND STOCKHOLDERS'
EQUITY
Non-interest bearing deposits....... $ 153,197 $ 135,110 $ 125,505 $ 110,244 $ 88,243
Interest bearing demand deposits.... 79,453 85,083 71,958 79,397 73,699
Savings and money market deposits... 646,838 562,234 484,662 497,437 476,100
Time deposits....................... 743,411 764,932 793,922 758,512 727,302
---------- ---------- ---------- ---------- ----------
Total deposits................... 1,622,899 1,547,359 1,476,047 1,445,590 1,365,344
Funds borrowed...................... 297,537 219,563 164,491 170,433 124,933
Long-term debt -- Trust Preferred
Securities....................... 20,000 20,000 20,000 20,000 20,000
Other liabilities................... 24,617 31,045 35,460 23,313 23,345
---------- ---------- ---------- ---------- ----------
Total liabilities................ 1,965,053 1,817,967 1,695,998 1,659,336 1,533,622
Stockholders' equity................ 174,041 166,956 161,105 100,340 95,373
---------- ---------- ---------- ---------- ----------
Total Liabilities and
Stockholders' Equity.......... $2,139,094 $1,984,923 $1,857,103 $1,759,676 $1,628,995
========== ========== ========== ========== ==========
11
PRIVATEBANCORP, INC.
AVERAGE QUARTERLY BALANCE SHEETS
(UNAUDITED, DOLLARS IN THOUSANDS)
3/31/04 12/31/03 09/30/03 6/30/03 3/31/03
--------- ---------- ---------- --------- ---------
ASSETS
Cash and due from banks............. $ 35,533 $ 33,812 $ 36,424 $ 40,194 $ 36,159
Short-term investments.............. 1,648 1,597 1,480 9,765 11,833
Investment securities--available
for sale......................... 690,826 652,463 589,624 543,799 492,443
Loans held for sale................. 3,640 4,481 11,228 10,401 11,178
Loans............................... 1,263,047 1,175,718 1,091,982 1,037,902 993,797
Less: Allowance for loan
losses........................ (15,544) (14,332) (13,358) (12,628) (12,091)
---------- ---------- ---------- ---------- ----------
Net loans........................ 1,247,503 1,161,386 1,078,624 1,025,274 981,706
---------- ---------- ---------- ---------- ----------
Premises and equipment, net......... 6,153 6,332 6,376 6,452 6,757
Goodwill............................ 21,338 19,233 19,275 19,249 19,756
Other assets........................ 25,179 25,079 27,774 25,758 22,322
---------- ---------- ---------- ---------- ----------
Total Assets..................... $2,031,820 $1,904,383 $1,770,805 $1,680,892 $1,582,154
========== ========== ========== ========== ==========
LIABILITIES AND STOCKHOLDERS'
EQUITY
Non-interest bearing deposits....... $ 127,635 $ 122,372 $ 111,010 $ 96,582 $ 81,926
Interest bearing demand deposits.... 84,975 82,293 76,223 75,019 65,977
Savings and money market deposits... 580,663 541,432 478,659 487,814 477,748
Time deposits....................... 717,282 772,564 755,081 724,497 637,990
---------- ---------- ---------- ---------- ----------
Total deposits................... 1,510,555 1,518,661 1,420,973 1,383,912 1,263,641
Funds borrowed...................... 305,930 183,290 169,088 157,485 191,898
Long-term debt -- Trust Preferred
Securities....................... 20,000 20,000 20,000 20,000 20,000
Other liabilities................... 23,301 20,619 21,093 21,130 12,241
---------- ---------- ---------- ---------- ----------
Total liabilities................ 1,859,786 1,742,570 1,631,154 1,582,527 1,487,780
Stockholders' equity................ 172,034 161,813 139,651 98,365 94,374
---------- ---------- ---------- ---------- ----------
Total Liabilities and
Stockholders' Equity.......... $2,031,820 $1,904,383 $1,770,805 $1,680,892 $1,582,154
========== ========== ========== ========== ==========
12
PRIVATEBANCORP, INC.
AVERAGE YEAR-TO-DATE BALANCE SHEETS
(UNAUDITED, DOLLARS IN THOUSANDS)
3/31/04 12/31/03 09/30/03 6/30/03 3/31/03
--------- ---------- ---------- --------- ---------
ASSETS
Cash and due from banks........... $ 35,533 $ 36,548 $ 37,598 $ 38,197 $ 36,159
Short-term investments............ 1,648 6,348 7,696 10,794 11,833
Investment securities--available
for sale....................... 690,826 569,718 541,833 518,263 492,443
Loans held for sale............... 3,640 9,359 11,003 10,370 11,178
Loans............................. 1,263,047 1,075,344 1,041,520 1,016,390 993,797
Less: Allowance for loan
losses...................... (15,544) (13,109) (12,697) (12,361) (12,091)
---------- ---------- ---------- ---------- ----------
Net loans...................... 1,247,503 1,062,235 1,028,823 1,004,029 981,706
---------- ---------- ---------- ---------- ----------
Premises and equipment, net....... 6,153 6,478 6,527 6,604 6,757
Goodwill.......................... 21,338 19,353 19,416 19,501 19,756
Other assets...................... 25,179 24,531 26,482 26,018 22,321
---------- ---------- ---------- ---------- ----------
Total Assets................... $2,031,820 $1,734,570 $1,679,378 $1,633,776 $1,582,153
========== ========== ========== ========== ==========
LIABILITIES AND STOCKHOLDERS'
EQUITY
Non-interest bearing deposits..... $ 127,635 $ 103,073 $ 96,246 $ 89,431 $ 81,926
Interest bearing demand deposits.. 84,975 74,926 72,444 70,523 65,977
Savings and money market deposits. 580,663 496,607 480,717 482,809 477,748
Time deposits..................... 717,282 722,990 706,285 681,483 637,990
---------- ---------- ---------- ---------- ----------
Total deposits................. 1,510,555 1,397,596 1,355,692 1,324,246 1,263,641
Funds borrowed.................... 305,930 175,451 172,862 174,781 191,898
Long-term debt -- Trust Preferred
Securities..................... 20,000 20,000 20,000 20,000 20,000
Other liabilities................. 23,301 17,924 19,016 18,731 12,318
---------- ---------- ---------- ---------- ----------
Total liabilities.............. 1,859,786 1,610,971 1,567,570 1,537,758 1,487,857
Stockholders' equity.............. 172,034 123,599 111,808 96,018 94,296
---------- ---------- ---------- ---------- ----------
Total Liabilities and
Stockholders' Equity........ $2,031,820 $1,734,570 $1,679,378 $1,633,776 $1,582,153
========== ========== ========== ========== ==========
13