PRIVATEBANCORP INC CHICAGO, April 20, 2017 /PRNewswire/ -- PrivateBancorp, Inc. (NASDAQ: PVTB) today reported net income of $58.0 million, or $0.70 per diluted share, for the first quarter 2017, compared to $49.6 million, or $0.62 per diluted share, for the first quarter 2016, and $59.5 million, or $0.73 per diluted share, for the fourth quarter 2016.
"Our first quarter results reflect our consistent focus on building client relationships as loans increased by $535.4 million to $15.6 billion and asset quality remained strong," said Larry D. Richman, President and Chief Executive Officer, PrivateBancorp, Inc. "We realized the benefit of a full quarter's impact of the December interest rate increase and average earning assets of $19.7 billion drove net interest income 15 percent higher from first quarter 2016. Net income was up 17 percent from a year ago to $58.0 million but down from the fourth quarter primarily due to higher employee expenses, as expected. We had a good start to the year.
"We are pleased to have reached a revised agreement with CIBC, which provides our stockholders with a significant increase in value as compared to the initial terms of the transaction," Richman continued. "PrivateBancorp's Board and management team continue to believe in the long-term strategic value of this combination and we continue to recommend that PrivateBancorp stockholders approve the transaction. We are excited to join the CIBC family and continue the integration planning process as we work with CIBC to complete the transaction as expeditiously as possible."
As previously announced, the special meeting of PrivateBancorp stockholders to consider the proposed merger transaction with CIBC is scheduled for May 12, 2017. The transaction is currently expected to close in the second quarter 2017, subject to approval by PrivateBancorp's stockholders and by the banking regulators in Canada and the United States.
First Quarter 2017 Highlights
-- Total loans grew to $15.6 billion, up $2.1 billion from a year ago and
$535.4 million from December 31, 2016, driven primarily by activity in
commercial and commercial real estate ("CRE") loans. At March 31, 2017,
commercial loans represented 64 percent and CRE and construction loans
represented 30 percent of total loans, relatively consistent with the
comparative periods. The loan-to-deposit ratio was 93.3 percent at March
31, 2017, compared to 93.0 percent a year ago and 93.7 percent at
December 31, 2016.
-- Net interest margin was 3.30 percent, compared to 3.30 percent for the
first quarter 2016 and 3.23 percent for the fourth quarter 2016. The
sequential improvement in net interest margin primarily reflected the
repricing of our variable rate loan portfolio reflecting upward movement
in short-term rates, offset in part by increased costs for
interest-bearing funds.
-- Net income for the first quarter 2017 was impacted by higher
compensation expense and a lower effective tax rate, both at levels
which are not expect to recur in the remainder of 2017. Included in
compensation expense in the first quarter was approximately $17 million
related to accelerated expense recognition for a portion of the annual
equity awards granted during the quarter and higher payroll taxes and
401(k) costs as is typical in the first quarter of the year. The first
quarter 2017's effective tax rate was impacted by approximately $7.6
million in tax benefits specific to first quarter activity.
-- The provision for loan and covered loan losses was $8.4 million for the
first quarter 2017, compared to $6.4 million for the first quarter 2016
and $6.0 million for the fourth quarter 2016. The allowance for loan
losses as a percentage of total loans was 1.25 percent for the first
quarter 2017, compared to 1.23 percent for both the first quarter 2016
and the fourth quarter 2016.
-- Return on average assets was 1.17 percent and return on average common
equity was 12.0 percent for the first quarter 2017.
Operating Performance
Net interest income grew to $161.0 million in the first quarter 2017, increasing 15 percent from the first quarter 2016 and 4 percent from the fourth quarter 2016, primarily driven by growth in average loans of 15 percent compared to first quarter 2016 and 3 percent compared to the fourth quarter 2016 and higher short-term rates. Net interest income for the first quarter 2017 was impacted by one fewer day compared to the first quarter 2016 and two fewer days as compared to the fourth quarter 2016.
Net interest margin was 3.30 percent in the first quarter 2017, consistent with a year ago and increasing seven basis points from the fourth quarter 2016. Loan yields increased 13 basis points from the fourth quarter 2016, primarily attributable to continued upward movement in LIBOR. Approximately 70 percent of the loan portfolio at year end was tied to one-month LIBOR, which was 98 basis points at March 31, 2017, compared to 43 basis points a year ago and 77 basis points at December 31, 2016. The interest rate moves during March 2017 are expected to be more impactful to loan yields during the second quarter 2017. Loan fees tied to early loan repayments were five basis points lower on a sequential basis. Deposit costs increased by eight basis points from the fourth quarter 2016 and 15 basis points year-over year, reflecting deposits repriced to a higher Fed funds effective or target rate and increases in rates paid on other deposit accounts. The impact of higher deposit costs on margin was somewhat reduced by the value of average noninterest-bearing funds in a higher rate environment. Further interest rate increases, or changing expectations about future short-term interest rate movements, may impact deposit market pricing, competitive dynamics, and overall funding costs in future periods.
Noninterest income was $37.3 million in the first quarter 2017, increasing $3.7 million from the first quarter 2016 and down $2.1 million from the fourth quarter 2016. Other income for the fourth quarter 2016 included gains related to loan sales of $1.5 million.
Capital markets revenue of $6.9 million for the first quarter 2017 reflected a negligible credit valuation adjustment (CVA), compared to a negative CVA of $1.9 million for the first quarter 2016 and a positive CVA of $3.1 million for the fourth quarter 2016. Excluding the CVA impact for all periods, capital markets revenue was $6.9 million in the first quarter 2017, compared to $7.1 million for the first quarter 2016 and $5.7 million for the fourth quarter 2016. Results for the first quarter 2017 reflected higher interest rate derivative activity compared to the prior periods. Meaningful interest rate movements in the last six months and changing expectations about the timing and extent of future interest rate movements create potential for increased opportunities in the interest rate derivatives business in 2017.
The continued onboarding of new commercial clients benefited treasury management fees, which increased 13 percent from the first quarter 2016 and 4 percent from the fourth quarter 2016. Syndication fees were $6.0 million for the first quarter 2017, compared to $5.4 million for the first quarter 2016 and $5.1 million for the fourth quarter 2016. Syndication fees vary from quarter to quarter depending on the level and mix of loans originated and distributed.
Asset management revenue was $5.6 million in the first quarter 2017, increasing 18 percent from the first quarter 2016 and 6 percent from the fourth quarter 2016. Assets under management and administration were $9.8 billion at March 31, 2017, compared to $9.6 billion a year ago and $9.7 billion at December 31, 2016, primarily reflecting growth in managed assets of 4 percent from year end. Custody assets declined 2 percent from December 31, 2016, reflecting a continuation of expected outflows from a large corporate trust account.
Expenses
Noninterest expense for the first quarter 2017 increased $19.9 million from the first quarter 2016 and $14.6 million from the fourth quarter 2016. The efficiency ratio was 55.3 percent for the first quarter 2017, compared to 51.9 percent for the first quarter 2016 and 48.9 percent for the fourth quarter 2016.
Compensation expense for the first quarter 2017 increased $14.8 million from the first quarter 2016 and $14.9 million from the fourth quarter 2016, primarily due to the required accelerated expense recognition related to a portion of the annual time-vested equity awards granted in the first quarter 2017. First quarter compensation expense also included seasonally higher payroll taxes and 401(k) costs. Approximately $17 million of compensation expense recorded in the first quarter will not recur for the remainder of 2017. Second quarter compensation will also be influenced by incentive compensation plans tied to company performance and merit increases made in March. Compared to the first quarter 2016, salaries and wages expense increased $2.9 million, primarily reflecting additional hires over the last year and annual salary adjustments made during the first quarter.
Other expenses includes the provision for unfunded commitments, which was $753,000 for the first quarter 2017, compared to $595,000 for the first quarter 2016 and $1.5 million for the fourth quarter 2016.
The effective tax rate for the first quarter 2017 was 27.1 percent, compared to 35.0 percent for the first quarter 2016 and 35.9 percent for the fourth quarter 2016. The lower tax rate in the first quarter 2017 was primarily attributable to net tax benefits from the exercise and vesting of share-based compensation. Such tax benefits totaled $4.9 million, compared to $2.1 million in the first quarter 2016 and $900,000 in the fourth quarter 2016. Most of the Company's restricted stock awards vest annually in the first quarter. Additionally, the effective tax rate in the first quarter 2017 was impacted by the completion of tax examinations, which added one-time tax benefits of $2.7 million to the current quarter's results and is expected not to recur.
Credit Quality
The allowance for loan losses was $194.6 million, or 1.25 percent of total loans, at March 31, 2017, compared to $185.8 million, or 1.23 percent of total loans, at December 31, 2016. The provision for loan losses was $8.4 million for the first quarter 2017, compared to $6.4 million for the first quarter 2016 and $6.1 million for the fourth quarter 2016. Specific reserve levels increased $8.2 million, resulting from impaired loan development and higher reserves required on impaired loans from prior periods. The provision for loan loss will fluctuate from period to period depending on the level of loan growth and unevenness in credit quality due to the size of individual credits. Annualized recoveries to average loans were 0.01 percent for the first quarter 2017, compared to annualized net charge-offs to average loans of 0.05 percent for the first quarter 2016 and 0.02 percent for the fourth quarter 2016.
Nonperforming assets were 0.46 percent of total assets at March 31, 2017, compared to 0.47 percent at December 31, 2016. At March 31, 2017, nonperforming loans were $85.0 million, or 0.55 percent of total loans, compared to $83.7 million, or 0.56 percent of total loans, at December 31, 2016. OREO declined $1.3 million from December 31, 2016, to $8.9 million at March 31, 2017. Restructured loans accruing interest increased $21.9 million from year end, primarily related to three credits.
Balance Sheet
Total assets were $20.4 billion at March 31, 2017, compared to $17.7 billion at March 31, 2016, and $20.1 billion at December 31, 2016. Total loans of $15.6 billion increased 16 percent from March 31, 2016, and 4 percent from December 31, 2016. Continued client development efforts generated loans to new clients of $608.0 million for the first quarter 2017. At March 31, 2017, commercial loans represented 64 percent of total loans, and commercial real estate and construction loans represented 30 percent of total loans, relatively consistent with the prior comparative periods. Total liabilities were $18.4 billion at March 31, 2017, compared to $15.9 billion at March 31, 2016, and $18.1 billion at December 31, 2016.
Total deposits were $16.7 billion at March 31, 2017, increasing 16 percent from March 31, 2016, and 4 percent from December 31, 2016. Total brokered deposits, as defined for regulatory reporting purposes, increased $481.4 million from year end, including an increase in traditional brokered deposits and CDARS totaling $275.4 million. During the quarter, we reduced FHLB borrowing by $350.0 million.
Capital
As of March 31, 2017, the total risk-based capital ratio was 12.59 percent, the Tier 1 risk-based capital ratio was 10.83 percent, and the leverage ratio was 10.33 percent. The common equity Tier 1 ratio was 9.95 percent and the tangible common equity ratio was 9.35 percent at the end of the first quarter 2017.
Pending Transaction with CIBC
On March 30, 2017, PrivateBancorp entered into a revised merger agreement with CIBC, a leading Canadian bank. PrivateBancorp stockholders of record as of March 31, 2017 will be entitled to vote on the revised merger agreement at the special meeting of stockholders, scheduled for May 12, 2017. The completion of the transaction remains subject to the receipt of PrivateBancorp stockholder approval and CIBC's receipt of required regulatory approvals. The transaction is currently expected to close during the second quarter. During the first quarter 2017, merger-related expenses were $1.6 million.
No Quarterly Conference Call
PrivateBancorp does not intend to conduct an earnings conference call to discuss this quarterly earnings report.
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 March 31, 2017, the Company had 36 offices in 13 states and $20.4 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 or conditions to differ from those reflected in forward-looking statements include:
-- the possibility that the transaction with CIBC does not close when
expected or at all because required regulatory, stockholder or other
approvals are not received or other conditions to the closing are not
satisfied on a timely basis or at all; or the possibility that, as a
result of the announcement and pendency of the proposed transaction, we
experience difficulties in employee retention and/or clients or vendors
seek to change their existing business relationships with us, or
competitors change their strategies to compete against us, any of which
may have a negative impact on our business or operations;
-- unanticipated changes in monetary policies of the Federal Reserve or
significant adjustments in the pace of, or market expectations for,
future interest rate changes;
-- uncertainty regarding U.S. regulatory reform proposals, 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;
-- availability of sufficient and 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 or
regulatory costs and 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.
Forward-looking statements are subject to risks, assumptions and uncertainties and could be significantly affected by many factors, including those set forth in the "Risk Factors" and "Management's Discussion and Analysis of Financial Condition and Results of Operations" sections of our Annual Report on Form 10-K for the fiscal year ended December 31, 2016, as well as those set forth in our subsequent periodic and current reports filed with the SEC. These factors should be considered in evaluating forward-looking statements and undue reliance should not be placed on our forward-looking statements. 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)
1Q17 4Q16 3Q16 2Q16 1Q16
---- ---- ---- ---- ----
Interest Income
Loans, including fees $165,180 $158,061 $148,759 $144,164 $140,067
Federal funds sold and
interest-bearing
deposits in banks 549 422 380 335 340
Securities:
Taxable 18,436 16,891 15,283 15,158 15,210
Exempt from Federal
income taxes 2,412 2,375 2,322 2,296 2,333
Other interest income 290 163 139 170 150
--- --- --- --- ---
Total interest income 186,867 177,912 166,883 162,123 158,100
------- ------- ------- ------- -------
Interest Expense
Deposits 18,405 16,300 15,238 13,895 13,141
Short-term borrowings 2,324 1,118 1,070 995 230
Long-term debt 5,120 5,113 5,065 5,216 5,211
----- ----- ----- ----- -----
Total interest expense 25,849 22,531 21,373 20,106 18,582
------ ------ ------ ------ ------
Net interest income 161,018 155,381 145,510 142,017 139,518
Provision for loan and
covered loan losses 8,408 6,048 15,691 5,569 6,402
----- ----- ------ ----- -----
Net interest income
after provision for
loan and covered loan
losses 152,610 149,333 129,819 136,448 133,116
------- ------- ------- ------- -------
Non-interest Income
Asset management 5,590 5,266 5,590 5,539 4,725
Mortgage banking 2,450 3,259 5,060 4,607 2,969
Capital markets products 6,924 8,824 5,448 5,852 5,199
Treasury management 9,247 8,849 8,617 8,290 8,186
Loan, letter of credit
and commitment fees 5,551 5,312 5,293 5,538 5,200
Syndication fees 5,962 5,137 4,721 5,664 5,434
Deposit service charges
and fees and other
income 1,502 2,765 2,885 1,060 1,358
Net securities gains 57 - - 580 531
--- --- --- --- ---
Total non-interest
income 37,283 39,412 37,614 37,130 33,602
------ ------ ------ ------ ------
Non-interest Expense
Salaries and employee
benefits 73,139 58,223 55,889 55,326 58,339
Net occupancy and
equipment expense 8,037 7,836 7,099 7,012 7,215
Technology and related
costs 6,680 6,660 6,282 5,487 5,293
Marketing 4,770 4,580 4,587 3,925 4,404
Professional services 4,851 3,535 2,865 9,490 2,994
Outsourced servicing
costs 994 930 1,379 2,052 1,840
Net foreclosed property
(income) expenses (189) 1,633 965 360 566
Postage, telephone, and
delivery 852 823 818 945 840
Insurance 4,178 4,066 3,931 3,979 3,820
Loan and collection
expense 1,968 2,611 1,972 2,017 1,532
Other expenses 5,129 4,947 6,133 3,623 3,650
----- ----- ----- ----- -----
Total non-interest
expense 110,409 95,844 91,920 94,216 90,493
------- ------ ------ ------ ------
Income before income
taxes 79,484 92,901 75,513 79,362 76,225
Income tax provision 21,532 33,353 26,621 28,997 26,673
------ ------ ------ ------ ------
Net income available to
common stockholders $57,952 $59,548 $48,892 $50,365 $49,552
======= ======= ======= ======= =======
Per Common Share Data
Basic earnings per share $0.72 $0.75 $0.61 $0.63 $0.63
Diluted earnings per
share $0.70 $0.73 $0.60 $0.62 $0.62
Cash dividends declared $0.01 $0.01 $0.01 $0.01 $0.01
Weighted-average common
shares outstanding 79,516 79,189 79,007 78,849 78,550
Weighted-average
diluted common shares
outstanding 81,300 81,083 80,673 80,317 79,856
Consolidated Balance Sheets
(Dollars in thousands)
3/31/17 12/31/16 9/30/16 6/30/16 3/31/16
------- -------- ------- ------- -------
Unaudited Audited Unaudited Unaudited Unaudited
Assets
Cash and due from
banks $166,012 $161,168 $166,607 $155,292 $133,001
Federal funds sold and
interest-bearing
deposits in banks 335,943 587,563 245,193 230,036 337,465
Loans held-for-sale 42,276 103,284 75,438 61,360 64,029
Securities available-
for-sale, at fair
value 2,112,165 2,013,525 1,961,099 1,864,636 1,831,848
Securities held-to-
maturity, at
amortized cost 1,801,973 1,738,123 1,633,235 1,435,334 1,456,760
Federal Home Loan Bank
("FHLB") stock 38,163 54,163 30,213 21,113 38,113
Loans - excluding
covered assets, net
of unearned fees 15,591,656 15,056,241 14,654,570 14,035,808 13,457,665
Allowance for loan
losses (194,615) (185,765) (180,268) (168,615) (165,356)
-------- -------- -------- -------- --------
Loans, net of
allowance for loan
losses and unearned
fees 15,397,041 14,870,476 14,474,302 13,867,193 13,292,309
Covered assets 21,181 22,063 23,889 25,151 25,769
Allowance for covered
loan losses (4,931) (4,766) (4,879) (5,525) (5,526)
------ ------ ------ ------ ------
Covered assets, net of
allowance for covered
loan losses 16,250 17,297 19,010 19,626 20,243
Other real estate
owned, excluding
covered assets 8,888 10,203 12,035 14,532 14,806
Premises, furniture,
and equipment, net 45,050 46,967 44,760 43,394 41,717
Accrued interest
receivable 57,316 57,986 48,512 47,209 47,349
Investment in bank
owned life insurance 58,449 58,115 57,750 57,380 57,011
Goodwill 94,041 94,041 94,041 94,041 94,041
Other intangible
assets 748 1,269 1,809 2,349 2,890
Derivative assets 21,511 27,965 62,094 80,995 66,406
Other assets 220,392 211,628 179,462 174,701 169,384
------- ------- ------- ------- -------
Total assets $20,416,218 $20,053,773 $19,105,560 $18,169,191 $17,667,372
=========== =========== =========== =========== ===========
Liabilities
Deposits:
Noninterest-bearing $5,258,941 $5,196,587 $4,857,470 $4,511,893 $4,338,177
Interest-bearing 11,449,774 10,868,642 10,631,384 10,045,501 10,126,692
----------
Total deposits 16,708,715 16,065,229 15,488,854 14,557,394 14,464,869
Short-term borrowings 1,195,318 1,544,746 1,233,318 1,287,934 602,365
Long-term debt 338,335 338,310 338,286 338,262 688,238
Accrued interest
payable 9,590 9,063 7,953 7,967 6,630
Derivative liabilities 15,420 18,122 19,236 27,940 22,498
Other liabilities 153,849 158,628 135,559 118,544 114,781
------- ------- ------- ------- -------
Total liabilities 18,421,227 18,134,098 17,223,206 16,338,041 15,899,381
---------- ---------- ---------- ---------- ----------
Equity
Common stock 79,765 79,313 79,101 78,918 78,894
Treasury stock - - - - (4,389)
Additional paid-in
capital 1,117,982 1,101,946 1,091,275 1,082,173 1,078,470
Retained earnings 793,927 736,798 678,059 629,976 580,418
Accumulated other
comprehensive income,
net of tax 3,317 1,618 33,919 40,083 34,598
----- ----- ------ ------ ------
Total equity 1,994,991 1,919,675 1,882,354 1,831,150 1,767,991
--------- --------- --------- --------- ---------
Total liabilities and
equity $20,416,218 $20,053,773 $19,105,560 $18,169,191 $17,667,372
=========== =========== =========== =========== ===========
Selected Financial Data
(Amounts in thousands, except per share data)
(Unaudited)
1Q17 4Q16 3Q16 2Q16 1Q16
---- ---- ---- ---- ----
Selected Statement of Income Data:
Net interest income $161,018 $155,381 $145,510 $142,017 $139,518
Net revenue (1)(2) $199,546 $196,027 $184,331 $180,341 $174,337
Operating profit
(1)(2) $89,137 $100,183 $92,411 $86,125 $83,844
Provision for loan
and covered loan
losses $8,408 $6,048 $15,691 $5,569 $6,402
Income before income
taxes $79,484 $92,901 $75,513 $79,362 $76,225
Net income available
to common
stockholders $57,952 $59,548 $48,892 $50,365 $49,552
Per Common Share Data:
Basic earnings per
share $0.72 $0.75 $0.61 $0.63 $0.63
Diluted earnings per
share $0.70 $0.73 $0.60 $0.62 $0.62
Dividends declared $0.01 $0.01 $0.01 $0.01 $0.01
Book value (period
end) (1) $24.93 $24.04 $23.64 $23.04 $22.29
Tangible book value
(period end) (1)(2) $23.75 $22.85 $22.43 $21.83 $21.07
Market value (period
end) $59.37 $54.19 $45.92 $44.03 $38.60
Book value multiple
(period end) 2.38 x 2.25 x 1.94 x 1.91 x 1.73 x
Share Data:
Weighted-average
common shares
outstanding 79,516 79,189 79,007 78,849 78,550
Weighted-average
diluted common
shares outstanding 81,300 81,083 80,673 80,317 79,856
Common shares issued
(period end) 80,024 79,849 79,640 79,464 79,443
Common shares
outstanding (period
end) 80,024 79,849 79,640 79,464 79,322
Performance Ratio:
Return on average
common equity 11.95% 12.40% 10.40% 11.20% 11.40%
Return on average
assets 1.17% 1.21% 1.04% 1.14% 1.15%
Return on average
tangible common
equity (1)(2) 12.63% 13.12% 11.04% 11.91% 12.16%
Net interest margin
(1)(2) 3.30% 3.23% 3.18% 3.28% 3.30%
Fee revenue as a
percent of total
revenue (1) 18.78% 20.23% 20.54% 20.47% 19.16%
Non-interest income
to average assets 0.75% 0.80% 0.80% 0.84% 0.78%
Non-interest expense
to average assets 2.22% 1.95% 1.96% 2.12% 2.09%
Net overhead ratio
(1) 1.47% 1.15% 1.16% 1.29% 1.32%
Efficiency ratio
(1)(2) 55.33% 48.89% 49.87% 52.24% 51.91%
Balance Sheet Ratios:
Loans to deposits
(period end) (3) 93.31% 93.72% 94.61% 96.42% 93.04%
Average interest-
earning assets to
average interest-
bearing liabilities 154.27% 155.71% 153.16% 151.10% 153.64%
Capital Ratios (period end):
Total risk-based
capital (1) 12.59% 12.49% 12.41% 12.42% 12.56%
Tier 1 risk-based
capital (1) 10.83% 10.73% 10.64% 10.66% 10.76%
Tier 1 leverage ratio
(1) 10.33% 10.28% 10.43% 10.56% 10.50%
Common equity Tier 1
(1) 9.95% 9.83% 9.71% 9.70% 9.76%
Tangible common
equity to tangible
assets (1)(2) 9.35% 9.14% 9.40% 9.60% 9.51%
Total equity to total
assets 9.77% 9.57% 9.85% 10.08% 10.01%
(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.
Selected Financial Data (continued)
(Dollars in thousands)
(Unaudited)
1Q17 4Q16 3Q16 2Q16 1Q16
---- ---- ---- ---- ----
Additional Selected Information:
Decrease (increase)
credit valuation
adjustment on
capital markets
derivatives (1) $ - $3,112 $910 $(1,033) $(1,904)
Salaries and employee benefits:
Salaries and wages $31,886 $30,974 $30,923 $30,335 $28,963
Share-based costs 16,317 5,034 4,728 4,618 6,357
Incentive
compensation and
commissions 14,348 17,144 15,604 15,882 13,307
Payroll taxes,
insurance and
retirement costs 10,588 5,071 4,634 4,491 9,712
Total salaries and
employee benefits $73,139 $58,223 $55,889 $55,326 $58,339
Loan and collection expense:
Loan origination and
servicing expense $1,241 $1,281 $1,716 $1,666 $1,297
Loan remediation
expense 727 1,330 256 351 235
--- ----- --- --- ---
Total loan and
collection expense $1,968 $2,611 $1,972 $2,017 $1,532
Transaction related
expenses $1,562 $329 $106 $6,270 $ -
Assets under management and
administration (AUMA):
Personal managed $2,134,372 $2,046,758 $2,068,772 $2,017,797 $1,867,572
Corporate and
institutional
managed 2,765,198 2,643,041 2,653,264 2,526,043 1,592,394
--------- --------- --------- --------- ---------
Total managed assets 4,899,570 4,689,799 4,722,036 4,543,840 3,459,966
Custody assets 4,894,402 4,975,269 5,326,757 6,145,445 6,161,827
---------
Total AUMA $9,793,972 $9,665,068 $10,048,793 $10,689,285 $9,621,793
========== ========== =========== =========== ==========
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-first-quarter-2017-earnings-300442471.html
SOURCE PrivateBancorp, Inc.
