Market Overview

PrivateBancorp Reports Fourth Quarter and Full Year 2015 Earnings

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Earnings per share up 38 percent for the quarter from prior year quarter and up 20 percent for the year from full year 2014

CHICAGO, Jan. 21, 2016 /PRNewswire/ -- PrivateBancorp, Inc. (NASDAQ: PVTB) today reported net income of $52.1 million, or $0.65 per diluted share, for the fourth quarter 2015, compared to $37.2 million, or $0.47 per diluted share, for the fourth quarter 2014, and $45.3 million, or $0.57 per diluted share, for the third quarter 2015. For the year ended December 31, 2015, the Company had net income of $185.3 million, or $2.32 per diluted share, compared to $153.1 million, or $1.94 per diluted share, for the year ended December 31, 2014.

"Our 2015 results reflect the benefit of our focus on consistent execution and building long-term profitable client relationships," said Larry D. Richman, President and Chief Executive Officer, PrivateBancorp, Inc. "We grew loans, deposits and fee income as we built new client relationships and expanded services to existing clients. In fact, in the fourth quarter we generated almost $500 million in new loans to new clients and increased noninterest bearing deposits by more than $285 million. Our ability to generate earning assets and grow revenue throughout the year, and to manage expenses, led to a 20 percent increase in operating profit. Net income was up 21 percent compared to a year ago, our seventh consecutive year of improving our bottom line results and strengthening our balance sheet.

"As we look into 2016, we believe we are well positioned to continue to add new client relationships and serve existing clients as they carry out their business objectives. We are confident in the business we have built and proud of the value we deliver to our clients, our communities and our shareholders."

Fourth Quarter 2015 Highlights

  • Total loans grew to $13.3 billion, up $1.4 billion from a year ago and $187.2 million from September 30, 2015.
  • Total deposits were $14.3 billion, increasing $1.3 billion from a year ago and $447.9 million from September 30, 2015. Noninterest-bearing demand deposits grew $839.0 million from a year ago and $286.9 million from September 30, 2015, representing 30 percent of total deposits at December 31, 2015, compared to 27 percent a year ago.
  • Net revenue of $170.4 million for the fourth quarter 2015 benefited from growth in average loans, increasing 15 percent from the fourth quarter 2014 and 4 percent from the third quarter 2015. Average loans grew $1.4 billion, or 13 percent, from the fourth quarter 2014 and $397.2 million, or 3 percent, from the third quarter 2015.
  • Net interest margin was 3.25 percent for the fourth quarter 2015, up from 3.07 percent for the fourth quarter 2014 and 3.23 percent for the third quarter 2015. Fourth quarter 2015 net interest margin benefited from fees recognized on early loan repayments. An improvement in short-term rates during the quarter also contributed modestly to net interest margin.
  • The provision for loan and covered loan losses was $2.8 million for the fourth quarter 2015, compared to $4.1 million for the fourth quarter 2014 and $4.2 million for the third quarter 2015.
  • Return on average assets was 1.21 percent and return on average common equity was 12.3 percent for the fourth quarter 2015. For the full year 2015, return on average assets was 1.13 percent, up from 1.04 percent for 2014, and return on average common equity was 11.6 percent, up from 10.9 percent for the prior year.

Operating Performance

Net interest income of $136.6 million in the fourth quarter 2015 increased 17 percent from the fourth quarter 2014 and 4 percent from the third quarter 2015, reflecting growth in average loans of 13 percent from the fourth quarter 2014 and 3 percent from the third quarter 2015. The fourth quarter 2014 also included a charge of $2.4 million related to the trust preferred securities redemption.

Net interest margin was 3.25 percent in the fourth quarter 2015, up 18 basis points from the fourth quarter 2014, reflecting higher loan yields and lower borrowing costs on a comparative basis. Compared to the third quarter 2015, net interest margin increased two basis points. Loan yields were two basis points higher compared to the prior quarter, benefiting from significant loan fees related to early loan repayments and a slight rise in short-term rates during the quarter. Deposits costs increased by one basis point, but the impact on margin was offset by an increase in average noninterest-bearing funds compared to the third quarter. The December interest rate moves will be more impactful in the first quarter 2016 as variable loans reprice.

Noninterest income was $32.6 million in the fourth quarter 2015, compared to $30.4 million for the fourth quarter 2014 and $30.8 million for the third quarter 2015. Treasury management fees were $7.9 million in the fourth quarter 2015, up 8 percent from the fourth quarter 2014, reflecting success in cross-sell activities. Syndication fees were $4.8 million in the fourth quarter 2015, up from $3.9 million in the fourth quarter 2014 and $4.4 million in the third quarter 2015. Syndication fees vary from quarter to quarter depending on the level and mix of loans originated and distributed.

Capital markets revenue of $6.3 million in the fourth quarter 2015 reflected a positive credit valuation adjustment (CVA) of $1.0 million. Excluding the CVA impact for all periods, capital markets revenue was $5.3 million in the fourth quarter 2015, down $623,000 from the fourth quarter 2014 and up $1.0 million from the third quarter 2015. Compared to the third quarter 2015, the fourth quarter benefited from additional interest rate derivative transactions, and foreign exchange revenues grew as spreads increased.

Assets under management and administration (AUMA) were $7.3 billion as of December 31, 2015, compared to $6.6 billion a year ago and $7.2 billion at September 30, 2015, benefiting from the continued focus on cross-selling asset management services to commercial clients and their owners and executives and ongoing client development. Asset management revenue was $4.4 million in the fourth quarter 2015, compared to $4.2 million for the fourth quarter 2014 and $4.5 million for the third quarter 2015.

Expenses

Noninterest expense was $83.0 million for the fourth quarter 2015, comparable to the fourth quarter 2014 and down $2.2 million from the third quarter 2015. The efficiency ratio was 48.7 percent for the fourth quarter 2015, compared to 56.0 percent for the fourth quarter 2014 and 52.2 percent for the third quarter 2015. Other expenses declined $6.6 million from the fourth quarter 2014 and $4.8 million from the third quarter 2015, primarily reflecting a release of reserves for unfunded commitments in the fourth quarter 2015 attributable to a problem credit provided for in the third quarter.

Higher incentive compensation accruals primarily drove an increase in salaries and benefits expense of 13 percent from the fourth quarter 2014 and 5 percent from the third quarter 2015. Compared to the prior year quarter, the quarter also reflected annual salary adjustments made during the first quarter and additional hires made over the last year.

Credit Quality

The allowance for loan losses was $160.7 million, or 1.21 percent of total loans, at December 31, 2015, compared to $162.9 million, or 1.25 percent of total loans, at September 30, 2015. The provision for loan losses was $2.9 million for the fourth quarter 2015, declining $1.1 million from the fourth quarter 2014 and $1.3 million from the third quarter 2015. Factors contributing to the reduction in the overall loan loss reserve and quarterly provision expense from the third quarter 2015 include commercial loan repayments and growth in commercial real estate loans; portfolio movement, including the migration of several commercial loans to improved risk rating positions; and a lower specific reserve requirement related to impaired loans. Annualized net charge-offs to average loans were 0.15 percent for the fourth quarter 2015, compared to 0.05 percent for the fourth quarter 2014 and annualized net recoveries to average loans of 0.05 percent for the third quarter 2015.

Nonperforming assets were 0.35 percent of total assets at December 31, 2015, compared to 0.34 percent at September 30, 2015. At December 31, 2015, nonperforming loans were $53.7 million, increasing $9.8 million from September 30, 2015. OREO declined $5.5 million to $7.3 million at December 31, 2015, largely reflecting properties sold during the quarter.

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 $17.3 billion at December 31, 2015, compared to $15.6 billion at December 31, 2014, and $16.9 billion at September 30, 2015. Total loans of $13.3 billion increased $1.4 billion from December 31, 2014, driven primarily by growth of $751.3 million in commercial and industrial loans and $435.8 million in commercial real estate loans. Compared to September 30, 2015, total loans increased $187.2 million, reflecting growth in commercial real estate and construction loans of $212.7 million and a reduction of commercial loans of $36.4 million from September 30, 2015, impacted by payoffs resulting from several clients completing sales of their businesses prior to year end. At year end, commercial loans represented 65 percent of total loans, and commercial real estate and construction loans represented 29 percent of total loans, relatively consistent with the prior comparative periods.

Total liabilities were $15.6 billion at December 31, 2015, compared to $14.1 billion at December 31, 2014, and $15.2 billion compared to September 30, 2015. Total deposits were $14.3 billion at December 31, 2015, increasing 10 percent from December 31, 2014, and 3 percent from September 30, 2015, reflecting growth in noninterest-bearing demand deposit balances offset by lower traditional brokered time deposits. Average deposits grew 9 percent from the fourth quarter 2014 and 4 percent from the third quarter 2015. Noninterest-bearing demand deposits represented 30 percent of total deposits at December 31, 2015, compared to 27 percent a year ago and 29 percent at September 30, 2015. At December 31, 2015, the loan-to-deposit ratio was 92 percent, compared to 91 percent as of December 31, 2014, and 94 percent as of September 30, 2015.

Capital

As of December 31, 2015, the total risk-based capital ratio was 12.37 percent, the Tier 1 risk-based capital ratio was 10.56 percent, and the leverage ratio was 10.35 percent. The common equity Tier 1 ratio was 9.54 percent and the tangible common equity ratio was 9.33 percent at the end of the year end 2015.

Quarterly Conference Call and Webcast Presentation

PrivateBancorp will host a conference call Thursday, January 21, 2016, 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 #8500868. A live webcast of the call can be accessed at investor.theprivatebank.com. A rebroadcast will be available at that website and by telephone by calling (855) 859-2056 (U.S. and Canada) or (404) 537-3406 (International) and entering passcode #8500868 beginning approximately two hours after the call until midnight ET February 4, 2016.

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 December 31, 2015, the Company had 35 offices in 12 states and $17.3 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:

  • uncertainty regarding recent geopolitical developments and the U.S. and global economic outlook that may continue to 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;
  • 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;
  • unanticipated changes in monetary policies of the Federal Reserve or significant changes in the pace of, or market expectations for, future interest rate increases;
  • an inability to attract and maintain 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 September 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)



Quarter Ended

December 31,


Year Ended

December 31,


2015


2014


2015


2014


Unaudited


Unaudited


Unaudited


Audited

Interest Income








Loans, including fees

$

137,006



$

120,649



$

517,461



$

463,755


Federal funds sold and interest-bearing deposits in banks

229



347



903



770


Securities:








Taxable

14,587



13,250



55,283



53,500


Exempt from Federal income taxes

2,306



1,683



8,270



6,173


Other interest income

115



49



295



189


Total interest income

154,243



135,978



582,212



524,387


Interest Expense








Interest-bearing demand deposits

936



1,026



3,845



3,728


Savings deposits and money market accounts

5,487



4,623



20,169



16,857


Time deposits

5,941



5,803



23,092



21,366


Short-term borrowings

201



143



656



638


Long-term debt

5,087



7,507



20,035



27,061


Total interest expense

17,652



19,102



67,797



69,650


Net interest income

136,591



116,876



514,415



454,737


Provision for loan and covered loan losses

2,831



4,120



14,790



12,044


Net interest income after provision for loan and covered loan losses

133,760



112,756



499,625



442,693


Non-interest Income








Asset management

4,392



4,241



17,958



17,268


Mortgage banking

2,812



3,083



14,079



10,245


Capital markets products

6,341



5,705



18,530



18,047


Treasury management

7,878



7,262



30,636



27,472


Loan, letter of credit and commitment fees

4,958



4,901



20,648



19,311


Syndication fees

4,844



3,943



17,205



19,514


Deposit service charges and fees and other income

1,394



1,291



10,134



5,203


Net securities gains

29





822



530


Total non-interest income

32,648



30,426



130,012



117,590


Non-interest Expense








Salaries and employee benefits

52,619



46,746



205,019



182,192


Net occupancy and equipment expense

8,505



7,947



32,708



31,258


Technology and related costs

3,843



3,431



14,267



13,281


Marketing

4,196



3,687



16,122



13,441


Professional services

2,746



3,471



11,320



11,761


Outsourced servicing costs

1,994



1,814



7,494



6,864


Net foreclosed property expenses

1,217



1,456



4,210



8,681


Postage, telephone, and delivery

964



809



3,582



3,400


Insurance

3,644



3,455



13,972



12,451


Loan and collection expense

1,754



2,037



8,556



6,765


Other expenses

1,538



8,172



15,987



21,982


Total non-interest expense

83,020



83,025



333,237



312,076


Income before income taxes

83,388



60,157



296,400



248,207


Income tax provision

31,251



22,934



111,089



95,128


Net income available to common stockholders

$

52,137



$

37,223



$

185,311



$

153,079


Per Common Share Data








Basic earnings per share

$

0.66



$

0.48



$

2.36



$

1.96


Diluted earnings per share

$

0.65



$

0.47



$

2.32



$

1.94


Cash dividends declared

$

0.01



$

0.01



$

0.04



$

0.04


Weighted-average common shares outstanding

78,366



77,173



77,968



77,007


Weighted-average diluted common shares outstanding

79,738



78,122



79,206



77,822


 

Consolidated Income Statements

(Amounts in thousands, except per share data)

(Unaudited)



4Q15


3Q15


2Q15


1Q15


4Q14

Interest Income










Loans, including fees

$

137,006



$

132,106



$

125,647



$

122,702



$

120,649


Federal funds sold and interest-bearing deposits in banks

229



168



245



261



347


Securities:










Taxable

14,587



13,599



13,541



13,556



13,250


Exempt from Federal income taxes

2,306



2,177



1,981



1,806



1,683


Other interest income

115



69



63



48



49


Total interest income

154,243



148,119



141,477



138,373



135,978


Interest Expense










Interest-bearing demand deposits

936



937



966



1,006



1,026


Savings deposits and money market accounts

5,487



5,119



4,953



4,610



4,623


Time deposits

5,941



5,782



5,730



5,639



5,803


Short-term borrowings

201



24



234



197



143


Long-term debt

5,087



5,048



4,972



4,928



7,507


Total interest expense

17,652



16,910



16,855



16,380



19,102


Net interest income

136,591



131,209



124,622



121,993



116,876


Provision for loan and covered loan losses

2,831



4,197



2,116



5,646



4,120


Net interest income after provision for loan and covered loan losses

133,760



127,012



122,506



116,347



112,756


Non-interest Income










Asset management

4,392



4,462



4,741



4,363



4,241


Mortgage banking

2,812



3,340



4,152



3,775



3,083


Capital markets products

6,341



3,098



4,919



4,172



5,705


Treasury management

7,878



8,010



7,421



7,327



7,262


Loan, letter of credit and commitment fees

4,958



5,670



4,914



5,106



4,901


Syndication fees

4,844



4,364



5,375



2,622



3,943


Deposit service charges and fees and other income

1,394



1,585



1,538



5,617



1,291


Net securities gains (losses)

29



260



(1)



534




Total non-interest income

32,648



30,789



33,059



33,516



30,426


Non-interest Expense










Salaries and employee benefits

52,619



50,019



50,020



52,361



46,746


Net occupancy and equipment expense

8,505



8,180



8,159



7,864



7,947


Technology and related costs

3,843



3,583



3,420



3,421



3,431


Marketing

4,196



3,682



4,666



3,578



3,687


Professional services

2,746



3,679



2,585



2,310



3,471


Outsourced servicing costs

1,994



1,786



2,034



1,680



1,814


Net foreclosed property expenses

1,217



1,080



585



1,328



1,456


Postage, telephone, and delivery

964



857



899



862



809


Insurance

3,644



3,667



3,450



3,211



3,455


Loan and collection expense

1,754



2,324



2,210



2,268



2,037


Other expenses

1,538



6,318



3,869



4,262



8,172


Total non-interest expense

83,020



85,175



81,897



83,145



83,025


Income before income taxes

83,388



72,626



73,668



66,718



60,157


Income tax provision

31,251



27,358



27,246



25,234



22,934


Net income available to common stockholders

$

52,137



$

45,268



$

46,422



$

41,484



$

37,223


Per Common Share Data










Basic earnings per share

$

0.66



$

0.58



$

0.59



$

0.53



$

0.48


Diluted earnings per share

$

0.65



$

0.57



$

0.58



$

0.52



$

0.47


Cash dividends declared

$

0.01



$

0.01



$

0.01



$

0.01



$

0.01


Weighted-average common shares outstanding

78,366



78,144



77,942



77,407



77,123


Weighted-average diluted common shares outstanding

79,738



79,401



79,158



78,512



78,122


 

Consolidated Balance Sheets


(Dollars in thousands)







12/31/15


9/30/15


6/30/15


3/31/15


12/31/14


Unaudited


Unaudited


Unaudited


Unaudited


Audited

Assets










Cash and due from banks

$

145,147



$

145,477



$

185,983



$

158,431



$

132,211


Federal funds sold and interest-bearing deposits in banks

238,511



231,600



192,531



799,953



292,341


Loans held-for-sale

108,798



76,225



54,263



89,461



115,161


Securities available-for-sale, at fair value

1,765,366



1,703,926



1,698,233



1,631,237



1,645,344


Securities held-to-maturity, at amortized cost

1,355,283



1,293,433



1,199,120



1,159,853



1,129,285


Federal Home Loan Bank ("FHLB") stock

26,613



30,740



25,854



28,556



28,666


Loans – excluding covered assets, net of unearned fees

13,266,475



13,079,314



12,543,281



12,170,484



11,892,219


Allowance for loan losses

(160,736)



(162,868)



(157,051)



(156,610)



(152,498)


Loans, net of allowance for loan losses and unearned fees

13,105,739



12,916,446



12,386,230



12,013,874



11,739,721


Covered assets

26,954



28,559



30,529



32,191



34,132


Allowance for covered loan losses

(5,712)



(6,337)



(6,332)



(6,021)



(5,191)


Covered assets, net of allowance for covered loan losses

21,242



22,222



24,197



26,170



28,941


Other real estate owned, excluding covered assets

7,273



12,760



15,084



15,625



17,416


Premises, furniture, and equipment, net

42,405



38,265



37,672



38,544



39,143


Accrued interest receivable

45,482



43,064



43,442



41,202



40,531


Investment in bank owned life insurance

56,653



56,292



55,926



55,561



55,207


Goodwill

94,041



94,041



94,041



94,041



94,041


Other intangible assets

3,430



4,008



4,586



5,230



5,885


Derivative assets

40,615



59,978



47,442



56,607



43,062


Other assets

202,823



166,128



161,291



147,003



196,427


Total assets

$

17,259,421



$

16,894,605



$

16,225,895



$

16,361,348



$

15,603,382


Liabilities










Demand deposits:










Noninterest-bearing

$

4,355,700



$

4,068,816



$

3,702,377



$

3,936,181



$

3,516,695


Interest-bearing

1,503,372



1,264,201



1,304,270



1,498,810



1,907,320


Savings deposits and money market accounts

6,296,443



6,249,485



5,992,288



6,156,331



5,171,025


Time deposits

2,190,077



2,315,237



2,390,001



2,510,406



2,494,928


Total deposits

14,345,592



13,897,739



13,388,936



14,101,728



13,089,968


Deposits held-for-sale









122,216


Short-term borrowings

372,467



514,121



434,695



258,788



432,385


Long-term debt

694,788



694,788



694,788



344,788



344,788


Accrued interest payable

7,080



6,509



7,543



7,004



6,948


Derivative liabilities

18,229



21,967



24,696



26,967



26,767


Other liabilities

122,314



111,482



90,441



82,644



98,631


Total liabilities

15,560,470



15,246,606



14,641,099



14,821,919



14,121,703


Equity










Common stock:










Voting

78,439



78,197



78,047



77,968



77,211


Treasury stock

(103)



(63)



(29)



(5,560)



(53)


Additional paid-in capital

1,071,674



1,060,274



1,051,778



1,047,227



1,034,048


Retained earnings

531,682



480,342



435,872



390,247



349,556


Accumulated other comprehensive income, net of tax

17,259



29,249



19,128



29,547



20,917


Total equity

1,698,951



1,647,999



1,584,796



1,539,429



1,481,679


Total liabilities and equity

$

17,259,421



$

16,894,605



$

16,225,895



$

16,361,348



$

15,603,382


 

Selected Financial Data




(Amounts in thousands, except per share data)




(Unaudited)







4Q15


3Q15


2Q15


1Q15


4Q14


Selected Statement of Income Data:











Net interest income

$

136,591



$

131,209



$

124,622



$

121,993



$

116,876



Net revenue (1)(2)

$

170,445



$

163,134



$

158,717



$

156,453



$

148,180



Operating profit (1)(2)

$

87,425



$

77,959



$

76,820



$

73,308



$

65,155



Provision for loan and covered loan losses

$

2,831



$

4,197



$

2,116



$

5,646



$

4,120



Income before income taxes

$

83,388



$

72,626



$

73,668



$

66,718



$

60,157



Net income available to common stockholders

$

52,137



$

45,268



$

46,422



$

41,484



$

37,223



Per Common Share Data:











Basic earnings per share

$

0.66



$

0.58



$

0.59



$

0.53



$

0.48



Diluted earnings per share

$

0.65



$

0.57



$

0.58



$

0.52



$

0.47



Dividends declared

$

0.01



$

0.01



$

0.01



$

0.01



$

0.01



Book value (period end) (1)

$

21.48



$

20.90



$

20.13



$

19.61



$

18.95



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

$

20.25



$

19.65



$

18.88



$

18.35



$

17.67



Market value (period end)

$

41.02



$

38.33



$

39.82



$

35.17



$

33.40



Book value multiple (period end)

1.91


x

1.83


x

1.98


x

1.79


x

1.76


x

Share Data:











Weighted-average common shares outstanding

78,366



78,144



77,942



77,407



77,173



Weighted-average diluted common shares outstanding

79,738



79,401



79,158



78,512



78,122



Common shares issued (period end)

79,099



78,865



78,718



78,654



78,180



Common shares outstanding (period end)

79,097



78,863



78,717



78,494



78,178



Performance Ratio:











Return on average common equity

12.29

%


11.05

%


11.85

%


11.05

%


10.03

%


Return on average assets

1.21

%


1.09

%


1.15

%


1.07

%


0.95

%


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

13.13

%


11.85

%


12.75

%


11.94

%


10.89

%


Net interest margin (1)(2)

3.25

%


3.23

%


3.17

%


3.21

%


3.07

%


Fee revenue as a percent of total revenue (1)

19.28

%


18.88

%


20.97

%


21.28

%


20.66

%


Non-interest income to average assets

0.75

%


0.74

%


0.82

%


0.86

%


0.78

%


Non-interest expense to average assets

1.92

%


2.04

%


2.03

%


2.14

%


2.12

%


Net overhead ratio (1)

1.16

%


1.30

%


1.21

%


1.27

%


1.35

%


Efficiency ratio (1)(2)

48.71

%


52.21

%


51.60

%


53.14

%


56.03

%


Balance Sheet Ratios:











Loans to deposits (period end) (3)

92.48

%


94.11

%


93.68

%


86.30

%


90.85

%


Average interest-earning assets to average interest-bearing liabilities

152.94

%


149.67

%


144.67

%


144.69

%


145.10

%


Capital Ratios (period end):











Total risk-based capital (1)

12.37

%


12.28

%


12.41

%


12.29

%


12.51

%


Tier 1 risk-based capital (1)

10.56

%


10.39

%


10.49

%


10.34

%


10.49

%


Tier 1 leverage ratio (1)

10.35

%


10.35

%


10.24

%


10.16

%


9.96

%


Common equity Tier 1 (1)(4)

9.54

%


9.35

%


9.41

%


9.23

%


9.33

%


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

9.33

%


9.23

%


9.22

%


8.86

%


8.91

%


Total equity to total assets

9.84

%


9.75

%


9.77

%


9.41

%


9.50

%


(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)



4Q15


3Q15


2Q15


1Q15


4Q14

Additional Selected Information:










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

$

1,043



$

(1,227)



$

616



$

(805)



$

(216)


Salaries and employee benefits:










Salaries and wages

$

28,113



$

28,143



$

27,461



$

27,002



$

26,521


Share-based costs

4,871



4,509



4,316



5,143



4,118


Incentive compensation and commissions

14,676



13,308



13,091



11,062



12,053


Payroll taxes, insurance and retirement costs

4,959



4,059



5,152



9,154



4,054


Total salaries and employee benefits

$

52,619



$

50,019



$

50,020



$

52,361



$

46,746


Loan and collection expense:










Loan origination and servicing expense

$

1,445



$

1,522



$

1,607



$

1,626



$

1,528


Loan remediation expense

309



802



603



642



509


Total loan and collection expense

$

1,754



$

2,324



$

2,210



$

2,268



$

2,037


Assets under management and administration (AUMA):










Personal managed

$

1,872,737



$

1,839,829



$

1,892,973



$

1,897,644



$

1,786,633


Corporate and institutional managed

1,787,187



1,800,522



1,883,166



1,826,215



1,347,299


Total managed assets

3,659,924



3,640,351



3,776,139



3,723,859



3,133,932


Custody assets

3,631,149



3,519,364



3,682,388



3,604,333



3,511,996


Total AUMA

$

7,291,073



$

7,159,715



$

7,458,527



$

7,328,192



$

6,645,928


(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-fourth-quarter-and-full-year-2015-earnings-300207565.html

SOURCE PrivateBancorp, Inc.

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