UPDATE: BMO Capital Markets Reiterates Market Perform Rating, Raises PT on PrivateBancorp

In a report published Wednesday, BMO Capital Markets reiterated its Market Perform rating on PrivateBancorp

, and slightly raised its price target from $16.00 to $17.00. BMO Capital Markets noted, “PVTB posted much stronger-than-expected balance sheet growth, with average earning assets up 22% annualized (vs. our estimate of 6% growth). Loan growth accelerated to 15% annualized from just 4% in 3Q12, with management citing increasing activity at the end of the year. There was also a surge in excess liquidity balances, which nearly doubled owing to strong deposit inflows. The strong balance sheet growth was partly offset by a steeper-than-expected drop in the net interest margin, down 19 bp linked quarter owing to higher excess liquidity balances, the issuance of subordinated debt, and lower asset yields. Management expects continued net interest margin pressure in 2013, though at a slower pace, which would make net interest income growth challenging, despite strong balance sheet growth.” PrivateBancorp closed on Tuesday at $16.56.