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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