Market Overview

PrivateBancorp Reports Third Quarter 2015 Earnings

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Earnings per share of $0.57 for third quarter 2015, compared to $0.51 for third quarter 2014 and $0.58 for second quarter 2015

CHICAGO, Oct. 13, 2015 /PRNewswire/ -- PrivateBancorp, Inc. (NASDAQ: PVTB) today reported net income of $45.3 million, or $0.57 per diluted share, for the third quarter 2015, compared to $40.5 million, or $0.51 per diluted share, for the third quarter 2014, and $46.4 million, or $0.58 per diluted share, for the second quarter 2015. For the nine months ended September 30, 2015, the Company had net income of $133.2 million, or $1.67 per diluted share, compared to $115.9 million, or $1.47 per diluted share, for the nine months ended September 30, 2014.

"Our third quarter results reflect our consistent execution as we continue to establish relationships with new clients and expand our banking business with existing clients," said Larry D. Richman, President and Chief Executive Officer, PrivateBancorp, Inc. "We grew loans $536 million from the prior quarter, with a good mix of commercial and industrial and commercial real estate. We grew deposits from new and existing clients, and noninterest-bearing demand deposits increased 10 percent over the previous quarter.

"On a year-over-year basis, third quarter net revenue was up 10 percent to $163 million as our steady loan growth drove a 12 percent increase in net interest income," Richman continued. "Net income increased 12 percent over third quarter 2014 to $45 million. Overall, I'm pleased with our performance this quarter and believe we are well positioned to finish the year strong."

Third Quarter 2015 Highlights

  • Total loans grew to $13.1 billion, up $1.5 billion, or 13 percent, from a year ago and up $536.0 million, or 4 percent, from June 30, 2015. Commercial loans represented 67 percent of total loans and commercial real estate and construction loans represented 27 percent of total loans at September 30, 2015.
  • Total deposits were $13.9 billion, increasing $1.0 billion, or 8 percent, from a year ago and $508.8 million, or 4 percent, from June 30, 2015. Noninterest-bearing demand deposits represented 29 percent of total deposits at September 30, 2015, compared to 26 percent a year ago.
  • Net revenue of $163.1 million benefited from growth in earning assets, increasing 10 percent from the third quarter 2014 and 3 percent from the second quarter 2015.
  • Net interest margin was 3.23 percent, comparable to the third quarter 2014 and up from 3.17 percent for the second quarter 2015. The current quarter benefited from a higher level of loan fees and lower average cash equivalents compared to the sequential quarter.
  • The provision for loan and covered loan losses was $4.2 million, compared to $3.9 million for the third quarter 2014 and $2.1 million for the second quarter 2015.
  • Return on average assets was 1.09 percent and return on average common equity was 11.1 percent for the third quarter 2015.

Operating Performance

Net interest income was $131.2 million in the third quarter 2015, an increase of 12 percent from the third quarter 2014 and 5 percent from the second quarter 2015, primarily reflecting growth in average loans. Average loan balances increased 13 percent from the third quarter 2014 and 3 percent from the second quarter 2015. Compared to the third quarter 2014, net interest income also benefited from interest savings largely related to the trust preferred securities redemption in the fourth quarter 2014.

Net interest margin was 3.23 percent in the third quarter 2015, comparable to the third quarter 2014, as the benefit from the trust preferred securities redemption offset the impact of lower loan yields. Compared to the second quarter 2015, net interest margin improved by six basis points. The current quarter benefited from a higher level of loan fees on a comparative basis, including one large fee from an early repayment that contributed three basis points to net interest margin. Excluding the impact of loan fees, loan yields remained relatively stable on a sequential basis. While loan pricing remains competitive in the current environment, the loan portfolio is largely indexed to short-term rates and benefited from a modest rise in one-month LIBOR. Lower average cash equivalents on a comparative basis also contributed three basis points to net interest margin. Deposits costs increased by two basis points, which was offset by an increase in average noninterest-bearing funds from the second quarter.

Noninterest income was $30.8 million in the third quarter 2015, compared to $30.7 million for the third quarter 2014 and $33.1 million for the second quarter 2015. Treasury management fees grew to $8.0 million in the third quarter 2015, up 16 percent from the third quarter 2014 and up 8 percent from the second quarter 2015. Continued success in cross-sell activities drove higher treasury management volume. Syndication fees declined to $4.4 million in the third quarter 2015, down from $6.8 million in the third quarter 2014 and $5.4 million in the second quarter 2015. Syndication fees will vary from quarter to quarter depending on the level and mix of loans originated and distributed.

Capital markets revenue of $3.1 million in the third quarter 2015 reflected a negative credit valuation adjustment (CVA) of $1.2 million. Excluding the CVA impact for all periods, capital markets revenue was $4.3 million in the third quarter 2015, up $1.6 million from the third quarter 2014 and comparable to the second quarter 2015. Compared to the third quarter 2014, the current quarter benefited from several larger interest rate derivative transactions, and foreign exchange revenues grew reflecting increased client penetration.

Assets under management and administration (AUMA) were $7.2 billion as of September 30, 2015, compared to $6.5 billion a year ago, benefiting from the continued focus on cross-selling asset management services to commercial and private wealth clients and ongoing client development. Compared to June 30, 2015, AUMA balances declined 4 percent primarily driven by market performance. Asset management revenue was $4.5 million in the third quarter 2015, compared to $4.2 million for the third quarter 2014 and $4.7 million for the second quarter 2015. Mortgage banking revenue improved 15 percent from the third quarter 2014 and declined 20 percent from the second quarter 2015 which benefited from a higher level of refinance activity.

Expenses

Noninterest expense was $85.2 million for the third quarter 2015, compared to $77.8 million for the third quarter 2014 and $81.9 million for the second quarter 2015. The efficiency ratio was 52.2 percent for the third quarter 2015, compared to 52.5 percent for the third quarter 2014 and 51.6 percent for the second quarter 2015.

Salaries and benefits expense was comparable to the second quarter 2015 and increased $3.6 million from the third quarter 2014 due to annual salary adjustments made during the first quarter, additional hires made over the last year, and higher incentive compensation accruals. Other expenses increased by $1.8 million from the third quarter 2014 and $2.4 million from the second quarter 2015, primarily related to a higher provision for unfunded commitments.

Credit Quality

The allowance for loan losses as a percentage of total loans was 1.25 percent at September 30, 2015, comparable to June 30, 2015. The provision for loan losses was $4.2 million for the third quarter 2015, increasing $471,000 from the third quarter 2014 and $2.1 million from the second quarter 2015. The current quarter's provision for loan losses reflected loan growth, portfolio movement, and recoveries exceeding charge-offs. Net recoveries to average loans were 0.05 percent for the third quarter 2015, compared to net charge-offs to average loans of less than 0.01 percent for the third quarter 2014 and 0.05 percent for the second quarter 2015.

Nonperforming assets were 0.34 percent of total assets at September 30, 2015, down from 0.44 percent at June 30, 2015. At September 30, 2015, nonperforming loans were $44.0 million, declining from $56.6 million at June 30, 2015. OREO declined 15 percent during the current quarter to $12.8 million at September 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 $16.9 billion at September 30, 2015, compared to $15.2 billion at September 30, 2014, and $16.2 billion at June 30, 2015. Total loans of $13.1 billion increased 13 percent from September 30, 2014, and 4 percent from June 30, 2015, driven by growth in commercial and industrial and commercial real estate loans. At September 30, 2015, total commercial loans (including owner-occupied commercial real estate) comprised 67 percent of total loans, and commercial real estate and construction loans represented 27 percent of total loans.

Total liabilities were $15.2 billion at September 30, 2015, compared to $13.8 billion at September 30, 2014, and $14.6 billion compared to June 30, 2015. Total deposits were $13.9 billion at September 30, 2015, increasing 8 percent from September 30, 2014, and 4 percent from June 30, 2015, driven primarily by higher noninterest-bearing demand deposit and money market account balances. Noninterest-bearing demand deposits represented 29 percent of total deposits at September 30, 2015, compared to 26 percent a year ago and 28 percent at June 30, 2015. The deposit base is predominately comprised of commercial client balances, including deposits from a variety of financial service businesses, which will fluctuate from time to time based on their business and liquidity needs. At September 30, 2015, the loan-to-deposit ratio was 94 percent, compared to 90 percent as of September 30, 2014, and 94 percent as of June 30, 2015.

Capital

As of September 30, 2015, the total risk-based capital ratio was 12.28 percent, the Tier 1 risk-based capital ratio was 10.39 percent, and the leverage ratio was 10.35 percent. The common equity Tier 1 ratio was 9.35 percent and the tangible common equity ratio was 9.23 percent at the end of the third quarter 2015.

Quarterly Conference Call and Webcast Presentation

PrivateBancorp will host a conference call Tuesday, October 13, 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 #33786969. 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 October 27, 2015, by calling (855) 859-2056 (U.S. and Canada) or (404) 537-3406 (International) and entering passcode #33786969.

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 September 30, 2015, the Company had 35 offices in 12 states and $16.9 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;
  • competitive pressures in the financial services industry relating to both pricing and loan structures, which may impact our growth rate due to increasing availability in the market of financing alternatives offering terms outside our risk tolerances;
  • 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 June 30, 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)


Three Months Ended

September 30,


Nine Months Ended

September 30,


2015


2014


2015


2014

Interest Income








Loans, including fees

$

132,106



$

119,211



$

380,455



$

343,106


Federal funds sold and interest-bearing deposits in banks

168



142



674



423


Securities:








Taxable

13,599



13,370



40,696



40,250


Exempt from Federal income taxes

2,177



1,529



5,964



4,490


Other interest income

69



48



180



140


  Total interest income

148,119



134,300



427,969



388,409


Interest Expense








Interest-bearing demand deposits

937



918



2,909



2,702


Savings deposits and money market accounts

5,119



4,173



14,682



12,234


Time deposits

5,782



5,723



17,151



15,563


Short-term borrowings

24



158



455



495


Long-term debt

5,048



6,570



14,948



19,554


  Total interest expense

16,910



17,542



50,145



50,548


  Net interest income

131,209



116,758



377,824



337,861


Provision for loan and covered loan losses

4,197



3,890



11,959



7,924


  Net interest income after provision for loan and covered loan losses

127,012



112,868



365,865



329,937


Non-interest Income








Asset management

4,462



4,240



13,566



13,027


Mortgage banking

3,340



2,904



11,267



7,162


Capital markets products

3,098



3,253



12,189



12,342


Treasury management

8,010



6,935



22,758



20,210


Loan, letter of credit and commitment fees

5,670



4,970



15,690



14,410


Syndication fees

4,364



6,818



12,361



15,571


Deposit service charges and fees and other income

1,585



1,546



8,740



3,912


Net securities gains

260



3



793



530


  Total non-interest income

30,789



30,669



97,364



87,164


Non-interest Expense








Salaries and employee benefits

50,019



46,421



152,400



135,446


Net occupancy and equipment expense

8,180



7,807



24,203



23,311


Technology and related costs

3,583



3,362



10,424



9,850


Marketing

3,682



3,752



11,926



9,754


Professional services

3,679



2,626



8,574



8,290


Outsourced servicing costs

1,786



1,736



5,500



5,050


Net foreclosed property expenses

1,080



1,631



2,993



7,225


Postage, telephone, and delivery

857



839



2,618



2,591


Insurance

3,667



3,077



10,328



8,996


Loan and collection expense

2,324



2,099



6,802



4,728


Other expenses

6,318



4,486



14,449



13,810


  Total non-interest expense

85,175



77,836



250,217



229,051


Income before income taxes

72,626



65,701



213,012



188,050


Income tax provision

27,358



25,174



79,838



72,194


  Net income available to common stockholders

$

45,268



$

40,527



$

133,174



$

115,856


Per Common Share Data








  Basic earnings per share

$

0.58



$

0.52



$

1.70



$

1.48


  Diluted earnings per share

$

0.57



$

0.51



$

1.67



$

1.47


  Cash dividends declared

$

0.01



$

0.01



$

0.03



$

0.03


  Weighted-average common shares outstanding

78,144



77,110



77,834



76,951


  Weighted-average diluted common shares outstanding

79,401



77,934



79,027



77,721


 

Consolidated Income Statements

(Amounts in thousands, except per share data)

(Unaudited)


3Q15


2Q15


1Q15


4Q14


3Q14

Interest Income










Loans, including fees

$

132,106



$

125,647



$

122,702



$

120,649



$

119,211


Federal funds sold and interest-bearing deposits in banks

168



245



261



347



142


Securities:










Taxable

13,599



13,541



13,556



13,250



13,370


Exempt from Federal income taxes

2,177



1,981



1,806



1,683



1,529


Other interest income

69



63



48



49



48


  Total interest income

148,119



141,477



138,373



135,978



134,300


Interest Expense










Interest-bearing demand deposits

937



966



1,006



1,026



918


Savings deposits and money market accounts

5,119



4,953



4,610



4,623



4,173


Time deposits

5,782



5,730



5,639



5,803



5,723


Short-term borrowings

24



234



197



143



158


Long-term debt

5,048



4,972



4,928



7,507



6,570


  Total interest expense

16,910



16,855



16,380



19,102



17,542


  Net interest income

131,209



124,622



121,993



116,876



116,758


Provision for loan and covered loan losses

4,197



2,116



5,646



4,120



3,890


  Net interest income after provision for loan and covered loan losses

127,012



122,506



116,347



112,756



112,868


Non-interest Income










Asset management

4,462



4,741



4,363



4,241



4,240


Mortgage banking

3,340



4,152



3,775



3,083



2,904


Capital markets products

3,098



4,919



4,172



5,705



3,253


Treasury management

8,010



7,421



7,327



7,262



6,935


Loan, letter of credit and commitment fees

5,670



4,914



5,106



4,901



4,970


Syndication fees

4,364



5,375



2,622



3,943



6,818


Deposit service charges and fees and other income

1,585



1,538



5,617



1,291



1,546


Net securities gains (losses)

260



(1)



534





3


  Total non-interest income

30,789



33,059



33,516



30,426



30,669


Non-interest Expense










Salaries and employee benefits

50,019



50,020



52,361



46,746



46,421


Net occupancy and equipment expense

8,180



8,159



7,864



7,947



7,807


Technology and related costs

3,583



3,420



3,421



3,431



3,362


Marketing

3,682



4,666



3,578



3,687



3,752


Professional services

3,679



2,585



2,310



3,471



2,626


Outsourced servicing costs

1,786



2,034



1,680



1,814



1,736


Net foreclosed property expenses

1,080



585



1,328



1,456



1,631


Postage, telephone, and delivery

857



899



862



809



839


Insurance

3,667



3,450



3,211



3,455



3,077


Loan and collection expense

2,324



2,210



2,268



2,037



2,099


Other expenses

6,318



3,869



4,262



8,172



4,486


  Total non-interest expense

85,175



81,897



83,145



83,025



77,836


Income before income taxes

72,626



73,668



66,718



60,157



65,701


Income tax provision

27,358



27,246



25,234



22,934



25,174


  Net income available to common stockholders

$

45,268



$

46,422



$

41,484



$

37,223



$

40,527


Per Common Share Data










  Basic earnings per share

$

0.58



$

0.59



$

0.53



$

0.48



$

0.52


  Diluted earnings per share

$

0.57



$

0.58



$

0.52



$

0.47



$

0.51


  Cash dividends declared

$

0.01



$

0.01



$

0.01



$

0.01



$

0.01


  Weighted-average common shares outstanding

78,144



77,942



77,407



77,173



77,110


  Weighted-average diluted common shares outstanding

79,401



79,158



78,512



78,122



77,934


 

Consolidated Balance Sheets

(Dollars in thousands)


9/30/15


6/30/15


3/31/15


12/31/14


9/30/14


Unaudited


Unaudited


Unaudited


Audited


Unaudited

Assets










Cash and due from banks

$

145,477



$

185,983



$

158,431



$

132,211



$

181,248


Federal funds sold and interest-bearing deposits in banks

231,600



192,531



799,953



292,341



416,071


Loans held-for-sale

76,225



54,263



89,461



115,161



57,748


Securities available-for-sale, at fair value

1,703,926



1,698,233



1,631,237



1,645,344



1,541,754


Securities held-to-maturity, at amortized cost

1,293,433



1,199,120



1,159,853



1,129,285



1,072,002


Federal Home Loan Bank ("FHLB") stock

30,740



25,854



28,556



28,666



28,666


Loans – excluding covered assets, net of unearned fees

13,079,314



12,543,281



12,170,484



11,892,219



11,547,587


Allowance for loan losses

(162,868)



(157,051)



(156,610)



(152,498)



(150,135)


Loans, net of allowance for loan losses and unearned fees

12,916,446



12,386,230



12,013,874



11,739,721



11,397,452


Covered assets

28,559



30,529



32,191



34,132



65,482


Allowance for covered loan losses

(6,337)



(6,332)



(6,021)



(5,191)



(4,485)


Covered assets, net of allowance for covered loan losses

22,222



24,197



26,170



28,941



60,997


Other real estate owned, excluding covered assets

12,760



15,084



15,625



17,416



17,293


Premises, furniture, and equipment, net

38,265



37,672



38,544



39,143



39,611


Accrued interest receivable

43,064



43,442



41,202



40,531



39,701


Investment in bank owned life insurance

56,292



55,926



55,561



55,207



54,849


Goodwill

94,041



94,041



94,041



94,041



94,041


Other intangible assets

4,008



4,586



5,230



5,885



6,627


Derivative assets

59,978



47,442



56,607



43,062



34,896


Other assets

166,128



161,291



147,003



196,427



147,512


Total assets

$

16,894,605



$

16,225,895



$

16,361,348



$

15,603,382



$

15,190,468


Liabilities










Demand deposits:










Noninterest-bearing

$

4,068,816



$

3,702,377



$

3,936,181



$

3,516,695



$

3,342,862


Interest-bearing

1,264,201



1,304,270



1,498,810



1,907,320



1,433,429


Savings deposits and money market accounts

6,249,485



5,992,288



6,156,331



5,171,025



5,368,866


Time deposits

2,315,237



2,390,001



2,510,406



2,494,928



2,704,047


Total deposits

13,897,739



13,388,936



14,101,728



13,089,968



12,849,204


Deposits held-for-sale







122,216



128,508


Short-term borrowings

514,121



434,695



258,788



432,385



6,563


Long-term debt

694,788



694,788



344,788



344,788



656,793


Accrued interest payable

6,509



7,543



7,004



6,948



6,987


Derivative liabilities

21,967



24,696



26,967



26,767



27,976


Other liabilities

111,482



90,441



82,644



98,631



79,128


Total liabilities

15,246,606



14,641,099



14,821,919



14,121,703



13,755,159


Equity










Common stock:










Voting

78,197



78,047



77,968



77,211



76,858


Nonvoting









285


Treasury stock

(63)



(29)



(5,560)



(53)



(6)


Additional paid-in capital

1,060,274



1,051,778



1,047,227



1,034,048



1,028,813


Retained earnings

480,342



435,872



390,247



349,556



313,123


Accumulated other comprehensive income, net of tax

29,249



19,128



29,547



20,917



16,236


Total equity

1,647,999



1,584,796



1,539,429



1,481,679



1,435,309


Total liabilities and equity

$

16,894,605



$

16,225,895



$

16,361,348



$

15,603,382



$

15,190,468


 

Selected Financial Data

(Amounts in thousands, except per share data)

(Unaudited)


3Q15


2Q15


1Q15


4Q14


3Q14


Selected Statement of Income Data:











Net interest income

$

131,209



$

124,622



$

121,993



$

116,876



$

116,758



Net revenue (1)(2)

$

163,134



$

158,717



$

156,453



$

148,180



$

148,238



Operating profit (1)(2)

$

77,959



$

76,820



$

73,308



$

65,155



$

70,402



Provision for loan and covered loan losses

$

4,197



$

2,116



$

5,646



$

4,120



$

3,890



Income before income taxes

$

72,626



$

73,668



$

66,718



$

60,157



$

65,701



Net income available to common stockholders

$

45,268



$

46,422



$

41,484



$

37,223



$

40,527



Per Common Share Data:











Basic earnings per share

$

0.58



$

0.59



$

0.53



$

0.48



$

0.52



Diluted earnings per share

$

0.57



$

0.58



$

0.52



$

0.47



$

0.51



Dividends declared

$

0.01



$

0.01



$

0.01



$

0.01



$

0.01



Book value (period end) (1)

$

20.90



$

20.13



$

19.61



$

18.95



$

18.37



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

$

19.65



$

18.88



$

18.35



$

17.67



$

17.08



Market value (period end)

$

38.33



$

39.82



$

35.17



$

33.40



$

29.91



Book value multiple (period end)

1.83


x

1.98


x

1.79


x

1.76


x

1.63


x

Share Data:











Weighted-average common shares outstanding

78,144



77,942



77,407



77,173



77,110



Weighted-average diluted common shares outstanding

79,401



79,158



78,512



78,122



77,934



Common shares issued (period end)

78,865



78,718



78,654



78,180



78,121



Common shares outstanding (period end)

78,863



78,717



78,494



78,178



78,121



Performance Ratio:











Return on average common equity

11.05

%


11.85

%


11.05

%


10.03

%


11.27

%


Return on average assets

1.09

%


1.15

%


1.07

%


0.95

%


1.09

%


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

11.85

%


12.75

%


11.94

%


10.89

%


12.27

%


Net interest margin (1)(2)

3.23

%


3.17

%


3.21

%


3.07

%


3.23

%


Fee revenue as a percent of total revenue (1)

18.88

%


20.97

%


21.28

%


20.66

%


20.80

%


Non-interest income to average assets

0.74

%


0.82

%


0.86

%


0.78

%


0.83

%


Non-interest expense to average assets

2.04

%


2.03

%


2.14

%


2.12

%


2.09

%


Net overhead ratio (1)

1.30

%


1.21

%


1.27

%


1.35

%


1.27

%


Efficiency ratio (1)(2)

52.21

%


51.60

%


53.14

%


56.03

%


52.51

%


Balance Sheet Ratios:











Loans to deposits (period end) (3)

94.11

%


93.68

%


86.30

%


90.85

%


89.87

%


Average interest-earning assets to average interest-bearing liabilities

149.67

%


144.67

%


144.69

%


145.10

%


145.51

%


Capital Ratios (period end):











Total risk-based capital (1)

12.28

%


12.41

%


12.29

%


12.51

%


13.18

%


Tier 1 risk-based capital (1)

10.39

%


10.49

%


10.34

%


10.49

%


11.12

%


Tier 1 leverage ratio (1)

10.35

%


10.24

%


10.16

%


9.96

%


10.70

%


Common equity Tier 1 (1)(4)

9.35

%


9.41

%


9.23

%


9.33

%


9.38

%


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

9.23

%


9.22

%


8.86

%


8.91

%


8.84

%


Total equity to total assets

9.75

%


9.77

%


9.41

%


9.50

%


9.45

%




(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 periods 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)


3Q15


2Q15


1Q15


4Q14


3Q14

Additional Selected Information:










(Increase) decrease credit valuation adjustment on capital markets derivatives (1)

$

(1,227)



$

616



$

(805)



$

(216)



$

486


Salaries and employee benefits:










Salaries and wages

$

28,143



$

27,461



$

27,002



$

26,521



$

26,178


Share-based costs

4,509



4,316



5,143



4,118



3,872


Incentive compensation and commissions

13,308



13,091



11,062



12,053



12,294


Payroll taxes, insurance and retirement costs

4,059



5,152



9,154



4,054



4,077


Total salaries and employee benefits

$

50,019



$

50,020



$

52,361



$

46,746



$

46,421


Loan and collection expense:










Loan origination and servicing expense

$

1,522



$

1,607



$

1,626



$

1,528



$

1,528


Loan remediation expense

802



603



642



509



571


Total loan and collection expense

$

2,324



$

2,210



$

2,268



$

2,037



$

2,099


Assets under management and administration (AUMA):










Personal managed

$

1,839,829



$

1,892,973



$

1,897,644



$

1,786,633



$

1,796,901


Corporate and institutional managed

1,800,522



1,883,166



1,826,215



1,347,299



1,364,624


Total managed assets

3,640,351



3,776,139



3,723,859



3,133,932



3,161,525


Custody assets

3,519,364



3,682,388



3,604,333



3,511,996



3,319,188


  Total AUMA

$

7,159,715



$

7,458,527



$

7,328,192



$

6,645,928



$

6,480,713




(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-third-quarter-2015-earnings-300158426.html

SOURCE PrivateBancorp, Inc.

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