Market Overview

PrivateBancorp Reports Second Quarter 2015 Earnings

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Earnings per share of $0.58 for second quarter 2015, compared to $0.52 for second quarter 2014 and first quarter 2015

CHICAGO, July 16, 2015 /PRNewswire/ -- PrivateBancorp, Inc. (NASDAQ: PVTB) today reported net income of $46.4 million, or $0.58 per diluted share, for the second quarter 2015, compared to $40.8 million, or $0.52 per diluted share, for the second quarter 2014, and $41.5 million, or $0.52 per diluted share, for the first quarter 2015. For the six months ended June 30, 2015, the Company had net income of $87.9 million, or $1.10 per diluted share, compared to $75.3 million, or $0.96 per diluted share, for the six months ended June 30, 2014.

"We drove top-line growth in the second quarter through our consistent focus on providing high-touch client solutions to commercial middle market companies," said Larry D. Richman, President and Chief Executive Officer, PrivateBancorp, Inc. "We increased net interest income and fee revenue in the quarter as we added new clients and expanded our relationships with existing clients. This drove an 11 percent increase in net revenue year over year to $158.7 million and a 14 percent increase in net income to $46.4 million.

"I am pleased with our strong results in the first two quarters of this year as we continue to capitalize on our ability to help our clients achieve their business goals," Richman continued. "I believe we are well positioned for the second half of 2015 as we continue to leverage the strength of our experienced teams to build lasting relationships with our clients."

Second Quarter 2015 Highlights

  • Total loans grew to $12.5 billion, up $1.4 billion, or 13 percent, from a year ago and up $372.8 million, or 3 percent, from March 31, 2015, driven by growth in commercial and industrial and commercial real estate loans.
  • Total deposits were $13.4 billion, a decline of $712.8 million, or 5 percent, from March 31, 2015, reflecting the expected client redeployment of transaction-related funds received during the first quarter. Deposits were up $1.2 billion, or 9 percent, from a year ago.
  • Net interest margin was 3.17 percent, declining from 3.21 percent both for the second quarter 2014 and the first quarter 2015, primarily driven by a lower level of loan fees and continued yield compression.
  • Net revenue of $158.7 million benefited from growth in earning assets and improvement in fee income, increasing 11 percent from the second quarter 2014 and up slightly from the first quarter 2015. Excluding a one-time gain related to the Norcross, Ga., branch sale in the first quarter 2015, net revenue improved by 4 percent on a sequential basis.
  • The provision for loan and covered loan losses was $2.1 million, compared to $327,000 for the second quarter 2014 and $5.6 million for the first quarter 2015. The current quarter's provision was impacted by the release of specific reserves established in earlier periods.
  • Return on average assets was 1.15 percent and return on average common equity was 11.9 percent for the second quarter 2015. In comparison, return on average assets was 1.07 percent and return on average common equity was 11.1 percent for the first quarter 2015.

Operating Performance

Net interest income was $124.6 million in the second quarter 2015, an increase of 11 percent compared to the second quarter 2014 and 2 percent compared to the first quarter 2015, primarily reflecting growth in average loans. Average loan balances increased 13 percent from the second quarter 2014 and 3 percent from the first quarter 2015. Compared to the second quarter 2014, net interest income also benefited from interest savings of $1.9 million largely related to the trust preferred securities redemption in the fourth quarter 2014.

Net interest margin was 3.17 percent in the second quarter 2015, compared to 3.21 percent in both the second quarter 2014 and the first quarter 2015. Compared to the first quarter 2015, net interest margin was primarily impacted by lower loan yields, which declined by seven basis points largely due to lower loan fees. Loan fees declined by five basis points, including the impact of a large fee collected in the prior quarter. The remaining decline in loan yields from the first quarter 2015 reflects lower contractual interest rates on a total portfolio basis, partially mitigated by an increase in one-month LIBOR. Interest-bearing deposit costs remained stable on a sequential basis. Compared to the second quarter 2014, net interest margin was impacted by lower loan yields and higher levels of average cash equivalents, which was partially offset by the benefit from the trust preferred securities redemption.

Noninterest income was $33.1 million in the second quarter 2015, compared to $30.3 million for the second quarter 2014 and $33.5 million for the first quarter 2015. Excluding a $4.1 million gain on the branch sale included in the first quarter 2015, non-interest income increased 12 percent on a sequential basis. Treasury management fees grew to $7.4 million in the second quarter 2015, up 11 percent from the second quarter 2014 and up slightly from the first quarter 2015. Continued success in cross-sell activities drove higher treasury management volume. Syndication fees of $5.4 million in the second quarter 2015 were comparable to the second quarter 2014 and more than doubled from the first quarter 2015. The current quarter benefited from a higher volume of transactions compared to the first quarter. Syndication fees will vary from quarter to quarter depending on the mix of loans originated and distributed.

Capital markets revenue was $4.9 million in the second quarter 2015, comparable to the second quarter 2014 and up $747,000 from the first quarter 2015. Excluding the impact of the credit valuation adjustment, capital markets revenue was $4.3 million in the second quarter 2015, down from $5.3 million in the second quarter 2014 and $5.0 million for the first quarter 2015. Foreign exchange revenue grew 33 percent from the first quarter 2015 reflecting increased client penetration. The demand for interest rate derivatives continues to be influenced by rate environment expectations.

Assets under management and administration were $7.5 billion as of June 30, 2015, growing from $6.4 billion a year ago and $7.3 billion at March 31, 2015, due to continued focus on cross-selling asset management services to banking clients and ongoing client development in this business. Asset management revenue was $4.7 million in the second quarter 2015, up compared to $4.4 million for both the second quarter 2014 and the first quarter 2015. Mortgage banking grew 58 percent from the second quarter 2014 and 10 percent from the first quarter 2015, primarily reflecting favorable market conditions and active client development.

Expenses

Noninterest expense was $81.9 million for the second quarter 2015, compared to $75.5 million for the second quarter 2014 and $83.1 million for the first quarter 2015. The efficiency ratio was 51.6 percent for the second quarter 2015, compared to 52.6 percent for the second quarter 2014 and 53.1 percent for the first quarter 2015.

Salaries and benefits expense declined $2.3 million from the first quarter 2015. First quarter's seasonally higher payroll taxes and benefits expenses were partially offset by a full quarter's impact of annual salary adjustments and additional performance-based incentive compensation accruals. Compared to the second quarter 2014, salaries and employee benefits increased $5.6 million due to annual salary adjustments, additional hires made throughout the period, and higher incentive compensation accruals based on improved performance.

Net foreclosed property expense declined $2.2 million from the second quarter 2014 and $743,000 from the first quarter 2015, reflecting a lower amount of writedowns and carrying costs on a reduced amount of foreclosed property (OREO). Marketing expense increased $1.1 million from the second quarter 2014 and the first quarter 2015 and included additional advertising and branding expenses, including the launch of an advertising campaign in the current quarter.

Credit Quality

The allowance for loan losses as a percentage of total loans was 1.25 percent at June 30, 2015, compared to 1.29 percent at March 31, 2015. The provision for loan losses was $2.1 million for the second quarter 2015, compared to $2.0 million for the second quarter 2014 and $5.5 million for the first quarter 2015. The current quarter's provision was impacted by loan growth, some credit migration, and favorable developments relating to several nonperforming loans that reduced specific reserve requirements. Specific reserves at June 30, 2015, declined to $7.5 million compared to $15.6 million at March 31, 2015. Net charge-offs to average loans were 0.05 percent for the second quarter 2015, consistent with the first quarter 2015.

Nonperforming assets were 0.44 percent of total assets at June 30, 2015, down from 0.53 percent at March 31, 2015. At June 30, 2015, nonperforming loans were $56.6 million, compared to $71.0 million at March 31, 2015. OREO declined 3 percent during the current quarter to $15.1 million at June 30, 2015.

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 $16.2 billion at June 30, 2015, compared to $14.6 billion at June 30, 2014, and $16.4 billion at March 31, 2015. Total loans of $12.5 billion increased 13 percent from June 30, 2014, and 3 percent from March 31, 2015, primarily driven by growth in commercial and industrial loans, as well as commercial real estate loans. At June 30, 2015, total commercial loans (including owner-occupied commercial real estate) comprised 67 percent of total loans, and commercial real estate and construction represented 27 percent of total loans.

Total liabilities were $14.6 billion at June 30, 2015, compared to $13.2 billion at June 30, 2014, and $14.8 billion compared to March 31, 2015. Total deposits were $13.4 billion at June 30, 2015, up 9 percent from June 30, 2014, and up 2 percent from year end. As anticipated, deposits declined 5 percent from March 31, 2015, primarily attributable to several commercial clients redeploying transaction-related funds received during the first quarter. The deposit base is predominately comprised of commercial client balances, which will fluctuate from time to time based on their business and liquidity needs. At June 30, 2015, the loan-to-deposit ratio was 94 percent, compared to 91 percent as of June 30, 2014, and 86 percent as of March 31, 2015.

Capital

As of June 30, 2015, the total risk-based capital ratio was 12.41 percent, the Tier 1 risk-based capital ratio was 10.49 percent, and the leverage ratio was 10.24 percent. The common equity Tier 1 ratio was 9.41 percent and the tangible common equity ratio was 9.22 percent at the end of the second quarter 2015.

Quarterly Conference Call and Webcast Presentation

PrivateBancorp will host a conference call Thursday, July 16, 2015, 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 #72801553. A live webcast of the call can be accessed at investor.theprivatebank.com. A rebroadcast will be available beginning approximately two hours after the call until midnight ET July 30, 2015, by calling (855) 859-2056 (U.S. and Canada) or (404) 537-3406 (International) and entering passcode #72801553.

About PrivateBancorp, Inc.

PrivateBancorp, Inc., through its subsidiary The PrivateBank, 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 it serves. As of June 30, 2015, the Company had 34 offices in 11 states and $16.2 billion in assets. The Company's website is www.theprivatebank.com.

Forward-Looking Statements

Statements made 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:

  • continued uncertainty regarding U.S. and global economic outlook that may impact market conditions or affect demand for certain banking products and services;
  • unanticipated developments in pending or prospective loan transactions or greater-than-expected paydowns or payoffs of existing loans;
  • unanticipated changes in interest rates or an extended period of continued historically low interest rates;
  • competitive pressures in the financial services industry relating to both pricing and loan structures, which have led to ongoing compression in loan yields and may impact our growth rate;
  • unforeseen credit quality problems or changing economic conditions that could result in charge-offs greater than we have anticipated in our allowance for loan losses or changes in value of our investments;
  • an inability to attract sufficient or cost-effective sources of liquidity or funding as and when needed;
  • unanticipated losses of one or more large depositor relationships, or other significant deposit outflows;
  • loss of key personnel or an inability to recruit appropriate talent cost-effectively;
  • greater-than-anticipated costs to support the growth of our business, including investments in technology, process improvements or other infrastructure enhancements, or greater-than-anticipated compliance costs or regulatory burdens; or
  • failures or disruptions to, or compromises of, our data processing or other information or operational systems, including the potential impact of disruptions or security breaches at our third-party service providers.

These factors should be considered in evaluating forward-looking statements and undue reliance should not be placed on our forward-looking statements. Readers should also consider the risks, assumptions and uncertainties set forth in the "Risk Factors" section of our Annual Report on Form 10-K for our fiscal year ended December 31, 2014, and "Management's Discussion and Analysis of Financial Condition and Results of Operations" section of our Quarterly Report on Form 10-Q for the quarter ended March 31, 2015, as well as those set forth in our subsequent periodic and current reports filed with the SEC. 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-U.S. GAAP Financial Measures

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. 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. If non-U.S. GAAP financial measures are used, the comparable U.S. GAAP financial measure, as well as the reconciliation of the non-U.S. GAAP financial measure to the comparable U.S. 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 U.S. GAAP, nor are they necessarily comparable to non-U.S. GAAP performance measures that may be presented by other companies.

Editor's Note: Financial highlights attached. Full financial supplement available on the Company's website at investor.theprivatebank.com.

Consolidated Income Statements

(Amounts in thousands, except per share data)

(Unaudited)


Quarter Ended

June 30,


Six Months Ended

June 30,


2015


2014


2015


2014

Interest Income








Loans, including fees

$

125,647



$

113,696



$

248,349



$

223,895


Federal funds sold and interest-bearing deposits in banks

245



139



506



281


Securities:








Taxable

13,541



13,625



27,097



26,880


Exempt from Federal income taxes

1,981



1,432



3,787



2,961


Other interest income

63



59



111



92


   Total interest income

141,477



128,951



279,850



254,109


Interest Expense








Interest-bearing demand deposits

966



842



1,972



1,784


Savings deposits and money market accounts

4,953



4,087



9,563



8,061


Time deposits

5,730



5,034



11,369



9,840


Short-term and secured borrowings

234



141



431



337


Long-term debt

4,972



6,496



9,900



12,984


   Total interest expense

16,855



16,600



33,235



33,006


   Net interest income

124,622



112,351



246,615



221,103


Provision for loan and covered loan losses

2,116



327



7,762



4,034


   Net interest income after provision for loan and covered loan losses

122,506



112,024



238,853



217,069


Non-interest Income








Asset management

4,741



4,440



9,104



8,787


Mortgage banking

4,152



2,626



7,927



4,258


Capital markets products

4,919



5,006



9,091



9,089


Treasury management

7,421



6,676



14,748



13,275


Loan, letter of credit and commitment fees

4,914



4,806



10,020



9,440


Syndication fees

5,375



5,440



7,997



8,753


Deposit service charges and fees and other income

1,538



1,069



7,155



2,366


Net securities (losses) gains

(1)



196



533



527


   Total non-interest income

33,059



30,259



66,575



56,495


Non-interest Expense








Salaries and employee benefits

50,020



44,405



102,381



89,025


Net occupancy and equipment expense

8,159



7,728



16,023



15,504


Technology and related costs

3,420



3,205



6,841



6,488


Marketing

4,666



3,589



8,244



6,002


Professional services

2,585



2,905



4,895



5,664


Outsourced servicing costs

2,034



1,850



3,714



3,314


Net foreclosed property expenses

585



2,771



1,913



5,594


Postage, telephone, and delivery

899



927



1,761



1,752


Insurance

3,450



3,016



6,661



5,919


Loan and collection expense

2,210



1,573



4,478



2,629


Other expenses

3,869



3,496



8,131



9,324


   Total non-interest expense

81,897



75,465



165,042



151,215


Income before income taxes

73,668



66,818



140,386



122,349


Income tax provision

27,246



25,994



52,480



47,020


   Net income available to common stockholders

$

46,422



$

40,824



$

87,906



$

75,329


Per Common Share Data








Basic earnings per share

$

0.59



$

0.52



$

1.12



$

0.97


Diluted earnings per share

$

0.58



$

0.52



$

1.10



$

0.96


Cash dividends declared

$

0.01



$

0.01



$

0.02



$

0.02


Weighted-average common shares outstanding

77,942



77,062



77,676



76,869


Weighted-average diluted common shares outstanding

79,158



77,806



78,837



77,612


 

Consolidated Income Statements

(Amounts in thousands, except per share data)

(Unaudited)


2Q15


1Q15


4Q14


3Q14


2Q14

Interest Income










Loans, including fees

$

125,647



$

122,702



$

120,649



$

119,211



$

113,696


Federal funds sold and interest-bearing deposits in banks

245



261



347



142



139


Securities:










Taxable

13,541



13,556



13,250



13,370



13,625


Exempt from Federal income taxes

1,981



1,806



1,683



1,529



1,432


Other interest income

63



48



49



48



59


   Total interest income

141,477



138,373



135,978



134,300



128,951


Interest Expense










Interest-bearing demand deposits

966



1,006



1,026



918



842


Savings deposits and money market accounts

4,953



4,610



4,623



4,173



4,087


Time deposits

5,730



5,639



5,803



5,723



5,034


Short-term and secured borrowings

234



197



143



158



141


Long-term debt

4,972



4,928



7,507



6,570



6,496


   Total interest expense

16,855



16,380



19,102



17,542



16,600


   Net interest income

124,622



121,993



116,876



116,758



112,351


Provision for loan and covered loan losses

2,116



5,646



4,120



3,890



327


   Net interest income after provision for loan and covered loan losses

122,506



116,347



112,756



112,868



112,024


Non-interest Income










Asset management

4,741



4,363



4,241



4,240



4,440


Mortgage banking

4,152



3,775



3,083



2,904



2,626


Capital markets products

4,919



4,172



5,705



3,253



5,006


Treasury management

7,421



7,327



7,262



6,935



6,676


Loan, letter of credit and commitment fees

4,914



5,106



4,901



4,970



4,806


Syndication fees

5,375



2,622



3,943



6,818



5,440


Deposit service charges and fees and other income

1,538



5,617



1,291



1,546



1,069


Net securities (losses) gains

(1)



534





3



196


   Total non-interest income

33,059



33,516



30,426



30,669



30,259


Non-interest Expense










Salaries and employee benefits

50,020



52,361



46,746



46,421



44,405


Net occupancy and equipment expense

8,159



7,864



7,947



7,807



7,728


Technology and related costs

3,420



3,421



3,431



3,362



3,205


Marketing

4,666



3,578



3,687



3,752



3,589


Professional services

2,585



2,310



3,471



2,626



2,905


Outsourced servicing costs

2,034



1,680



1,814



1,736



1,850


Net foreclosed property expenses

585



1,328



1,456



1,631



2,771


Postage, telephone, and delivery

899



862



809



839



927


Insurance

3,450



3,211



3,455



3,077



3,016


Loan and collection expense

2,210



2,268



2,037



2,099



1,573


Other expenses

3,869



4,262



8,172



4,486



3,496


   Total non-interest expense

81,897



83,145



83,025



77,836



75,465


Income before income taxes

73,668



66,718



60,157



65,701



66,818


Income tax provision

27,246



25,234



22,934



25,174



25,994


   Net income available to common stockholders

$

46,422



$

41,484



$

37,223



$

40,527



$

40,824


Per Common Share Data










Basic earnings per share

$

0.59



$

0.53



$

0.48



$

0.52



$

0.52


Diluted earnings per share

$

0.58



$

0.52



$

0.47



$

0.51



$

0.52


Cash dividends declared

$

0.01



$

0.01



$

0.01



$

0.01



$

0.01


Weighted-average common shares outstanding

77,942



77,407



77,173



77,110



77,062


Weighted-average diluted common shares outstanding

79,158



78,512



78,122



77,934



77,806


 

 

Consolidated Balance Sheets

(Dollars in thousands)


6/30/15


3/31/15


12/31/14


9/30/14


6/30/14


Unaudited


Unaudited


Audited


Unaudited


Unaudited

Assets










Cash and due from banks

$

185,983



$

158,431



$

132,211



$

181,248



$

247,048


Federal funds sold and interest-bearing deposits in banks

192,531



799,953



292,341



416,071



160,349


Loans held-for-sale

54,263



89,461



115,161



57,748



80,724


Securities available-for-sale, at fair value

1,698,233



1,631,237



1,645,344



1,541,754



1,527,747


Securities held-to-maturity, at amortized cost

1,199,120



1,159,853



1,129,285



1,072,002



1,066,216


Federal Home Loan Bank ("FHLB") stock

25,854



28,556



28,666



28,666



28,666


Loans – excluding covered assets, net of unearned fees

12,543,281



12,170,484



11,892,219



11,547,587



11,136,942


Allowance for loan losses

(157,051)



(156,610)



(152,498)



(150,135)



(146,491)


Loans, net of allowance for loan losses and unearned fees

12,386,230



12,013,874



11,739,721



11,397,452



10,990,451


Covered assets

30,529



32,191



34,132



65,482



81,047


Allowance for covered loan losses

(6,332)



(6,021)



(5,191)



(4,485)



(14,375)


Covered assets, net of allowance for covered loan losses

24,197



26,170



28,941



60,997



66,672


Other real estate owned, excluding covered assets

15,084



15,625



17,416



17,293



19,823


Premises, furniture, and equipment, net

37,672



38,544



39,143



39,611



40,088


Accrued interest receivable

43,442



41,202



40,531



39,701



36,568


Investment in bank owned life insurance

55,926



55,561



55,207



54,849



54,500


Goodwill

94,041



94,041



94,041



94,041



94,041


Other intangible assets

4,586



5,230



5,885



6,627



7,381


Derivative assets

47,442



56,607



43,062



34,896



47,012


Other assets

161,291



147,003



196,427



147,512



135,118


  Total assets

$

16,225,895



$

16,361,348



$

15,603,382



$

15,190,468



$

14,602,404


Liabilities










Demand deposits:










Noninterest-bearing

$

3,702,377



$

3,936,181



$

3,516,695



$

3,342,862



$

3,387,424


Interest-bearing

1,304,270



1,498,810



1,907,320



1,433,429



1,230,681


Savings deposits and money market accounts

5,992,288



6,156,331



5,171,025



5,368,866



5,033,247


Time deposits

2,390,001



2,510,406



2,494,928



2,704,047



2,584,849


  Total deposits

13,388,936



14,101,728



13,089,968



12,849,204



12,236,201


Deposits held-for-sale





122,216



128,508




Short-term and secured borrowings

434,695



258,788



432,385



6,563



235,319


Long-term debt

694,788



344,788



344,788



656,793



626,793


Accrued interest payable

7,543



7,004



6,948



6,987



6,282


Derivative liabilities

24,696



26,967



26,767



27,976



35,402


Other liabilities

90,441



82,644



98,631



79,128



64,586


  Total liabilities

14,641,099



14,821,919



14,121,703



13,755,159



13,204,583


Equity










Common stock:










Voting

78,047



77,968



77,211



76,858



75,526


Nonvoting







285



1,585


Treasury stock

(29)



(5,560)



(53)



(6)



(945)


Additional paid-in capital

1,051,778



1,047,227



1,034,048



1,028,813



1,024,869


Retained earnings

435,872



390,247



349,556



313,123



273,380


Accumulated other comprehensive income, net of tax

19,128



29,547



20,917



16,236



23,406


  Total equity

1,584,796



1,539,429



1,481,679



1,435,309



1,397,821


  Total liabilities and equity

$

16,225,895



$

16,361,348



$

15,603,382



$

15,190,468



$

14,602,404


 


Selected Financial Data

(Amounts in thousands, except per share data)

(Unaudited)


2Q15


1Q15


4Q14


3Q14


2Q14


Selected Statement of Income Data:











Net interest income

$

124,622



$

121,993



$

116,876



$

116,758



$

112,351



Net revenue (1)(2)

$

158,717



$

156,453



$

148,180



$

148,238



$

143,354



Operating profit (1)(2)

$

76,820



$

73,308



$

65,155



$

70,402



$

67,889



Provision for loan and covered loan losses

$

2,116



$

5,646



$

4,120



$

3,890



$

327



Income before income taxes

$

73,668



$

66,718



$

60,157



$

65,701



$

66,818



Net income available to common stockholders

$

46,422



$

41,484



$

37,223



$

40,527



$

40,824



Per Common Share Data:











Basic earnings per share

$

0.59



$

0.53



$

0.48



$

0.52



$

0.52



Diluted earnings per share

$

0.58



$

0.52



$

0.47



$

0.51



$

0.52



Dividends declared

$

0.01



$

0.01



$

0.01



$

0.01



$

0.01



Book value (period end) (1)

$

20.13



$

19.61



$

18.95



$

18.37



$

17.90



Tangible book value (period end) (1)(2)

$

18.88



$

18.35



$

17.67



$

17.08



$

16.61



Market value (period end)

$

39.82



$

35.17



$

33.40



$

29.91



$

29.06



Book value multiple (period end)

1.98


x

1.79


x

1.76


x

1.63


x

1.62


x

Share Data:











Weighted-average common shares outstanding

77,942



77,407



77,173



77,110



77,062



Weighted-average diluted common shares outstanding

79,158



78,512



78,122



77,934



77,806



Common shares issued (period end)

78,718



78,654



78,180



78,121



78,101



Common shares outstanding (period end)

78,717



78,494



78,178



78,121



78,069



Performance Ratio:











Return on average common equity

11.85

%


11.05

%


10.03

%


11.27

%


11.88

%


Return on average assets

1.15

%


1.07

%


0.95

%


1.09

%


1.14

%


Return on average tangible common equity (1)(2)

12.75

%


11.94

%


10.89

%


12.27

%


12.97

%


Net interest margin (1)(2)

3.17

%


3.21

%


3.07

%


3.23

%


3.21

%


Fee revenue as a percent of total revenue (1)

20.97

%


21.28

%


20.66

%


20.80

%


21.11

%


Non-interest income to average assets

0.82

%


0.86

%


0.78

%


0.83

%


0.84

%


Non-interest expense to average assets

2.03

%


2.14

%


2.12

%


2.09

%


2.10

%


Net overhead ratio (1)

1.21

%


1.27

%


1.35

%


1.27

%


1.26

%


Efficiency ratio (1)(2)

51.60

%


53.14

%


56.03

%


52.51

%


52.64

%


Balance Sheet Ratios:











Loans to deposits (period end) (3)

93.68

%


86.30

%


90.85

%


89.87

%


91.02

%


Average interest-earning assets to average interest-bearing liabilities

144.67

%


144.69

%


145.10

%


145.51

%


143.72

%


Capital Ratios (period end):











Total risk-based capital (1)

12.41

%


12.29

%


12.51

%


13.18

%


13.41

%


Tier 1 risk-based capital (1)

10.49

%


10.34

%


10.49

%


11.12

%


11.24

%


Tier 1 leverage ratio (1)

10.24

%


10.16

%


9.96

%


10.70

%


10.63

%


Common equity Tier 1 (1)(4)

9.41

%


9.23

%


9.33

%


9.38

%


9.42

%


Tangible common equity to tangible assets (1)(2)

9.22

%


8.86

%


8.91

%


8.84

%


8.94

%


Total equity to total assets

9.77

%


9.41

%


9.50

%


9.45

%


9.57

%




(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.

(4)    

Effective January 1, 2015, the common equity Tier 1 ratio is a required regulatory capital measure and as presented for the 2015 period is calculated in accordance with the new Basel III capital rules. For periods prior to January 1, 2015, this ratio was considered a non-U.S. GAAP financial measure and was calculated without giving effect to the final Basel III capital rules. Refer to "Non-U.S. GAAP Financial Measures" for a reconciliation from non-U.S. GAAP to U.S. GAAP for periods prior to 2015.

 


Selected Financial Data (continued)

(Dollars in thousands)

(Unaudited)


2Q15


1Q15


4Q14


3Q14


2Q14

Additional Selected Information:










Decrease (increase) credit valuation adjustment on capital markets derivatives (1)

$

616



$

(805)



$

(216)



$

486



$

(250)


Salaries and employee benefits:










Salaries and wages

$

27,461



$

27,002



$

26,521



$

26,178



$

25,671


Share-based costs

4,316



5,143



4,118



3,872



3,892


Incentive compensation and commissions

13,091



11,062



12,053



12,294



10,493


Payroll taxes, insurance and retirement costs

5,152



9,154



4,054



4,077



4,349


  Total salaries and employee benefits

$

50,020



$

52,361



$

46,746



$

46,421



$

44,405


Loan and collection expense:










Loan origination and servicing expense

$

1,607



$

1,626



$

1,528



$

1,528



$

1,202


Loan remediation expense

603



642



509



571



371


  Total loan and collection expense

$

2,210



$

2,268



$

2,037



$

2,099



$

1,573


Provision (release) for unfunded commitments

$

507



$

376



$

2,514



$

481



$

(339)


Unfunded commitments, excluding covered assets

$

6,135,242



$

6,229,242



$

6,041,301



$

5,365,042



$

4,957,324


Assets under management and administration (AUMA):










Personal managed

$

1,892,973



$

1,897,644



$

1,786,633



$

1,796,901



$

1,834,034


Corporate and institutional managed

1,883,166



1,826,215



1,347,299



1,364,624



1,380,099


Total managed assets

3,776,139



3,723,859



3,133,932



3,161,525



3,214,133


Custody assets

3,682,388



3,604,333



3,511,996



3,319,188



3,151,829


  Total AUMA

$

7,458,527



$

7,328,192



$

6,645,928



$

6,480,713



$

6,365,962




(1) 

Refer to Glossary of Terms for definition.

 

To view the original version on PR Newswire, visit:http://www.prnewswire.com/news-releases/privatebancorp-reports-second-quarter-2015-earnings-300114207.html

SOURCE PrivateBancorp, Inc.

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