PRIVATEBANCORP INC CHICAGO, Jan. 18, 2017 /PRNewswire/ -- PrivateBancorp, Inc. (NASDAQ: PVTB) today reported net income of $59.5 million, or $0.73 per diluted share, for the fourth quarter 2016, compared to $52.1 million, or $0.65 per diluted share, for the fourth quarter 2015, and $48.9 million, or $0.60 per diluted share, for the third quarter 2016. For the year ended December 31, 2016, the Company had net income of $208.4 million, or $2.57 per diluted share, compared to $185.3 million, or $2.32 per diluted share, for the year ended December 31, 2015.
"We are pleased with our fourth quarter performance to cap a strong 2016," said Larry D. Richman, President and Chief Executive Officer, PrivateBancorp, Inc. "Through the continued successful execution of our business development efforts, and with the benefit of a rising rate environment, we achieved annual double-digit growth in loans, deposits, revenue and net income as we continued to deliver value for our clients and stockholders in 2016. Our dedicated team members remain focused on executing our strategic priorities and building new client relationships while doing more for existing clients, enabling us to drive our bottom-line results.
"We have built a premier commercial bank that brings an unparalleled level of experience and understanding to our clients," Richman continued. "Our clients turn to us for solutions that help them grow their businesses. I am pleased with our momentum going into 2017 and look forward to more favorable conditions for the banking industry with continued strengthening in our economy.
"Finally, we continue to work toward the successful completion of our proposed merger with CIBC. The long-term strategic benefits of the transaction remain compelling. We will announce the rescheduled stockholder meeting date when it is established by our Board of Directors."
Fourth Quarter and Full Year 2016 Highlights
-- Total loans grew to $15.1 billion, up $1.8 billion from a year ago and
$401.7 million from September 30, 2016, driven primarily by activity in
commercial and commercial real estate ("CRE") loans. At December 31,
2016, commercial loans represented 64 percent and CRE and construction
loans represented 30 percent of total loans, relatively consistent with
the comparative periods.
-- Total deposits were $16.1 billion, increasing $1.7 billion from a year
ago and $576.4 million from September 30, 2016. The loan-to-deposit
ratio was 93.7 percent at December 31, 2016, compared to 92.5 percent a
year ago and 94.6 percent at September 30, 2016.
-- Net interest margin was 3.23 percent, compared to 3.25 percent for the
fourth quarter 2015 and 3.18 percent for the third quarter 2016. The
sequential improvement in net interest margin reflected higher fees
recognized on early loan repayments and higher short-term rates. For the
full year 2016, net interest margin increased by four basis points from
the prior year, reflecting increased loan yields and the benefit from
continued growth in noninterest-bearing funds in a higher rate
environment, offset in part by increased costs for interest-bearing
funds.
-- Growth in earning assets continued to benefit operating profit, which
increased 15 percent from the fourth quarter 2015 and 8 percent from the
third quarter 2016. For the full year 2016, average interest-earning
assets grew $1.9 billion to $17.8 billion and operating profit increased
by $47.1 million, or 15 percent, compared to 2015.
-- The efficiency ratio was 48.9 percent for the fourth quarter 2016,
compared to 48.7 percent for the fourth quarter 2015 and 49.9 percent
for the third quarter 2016. For the full year 2016, the efficiency ratio
was 50.7 percent, which was impacted by $6.7 million of transaction
related expenses.
-- Asset quality remained strong, with nonperforming loans representing
0.56 percent of total loans at year end. The provision for loan and
covered loan losses was $6.0 million for the fourth quarter 2016,
compared to $2.8 million for the fourth quarter 2015 and $15.7 million
for the third quarter 2016.
-- Return on average assets was 1.21 percent and return on average common
equity was 12.4 percent for the fourth quarter 2016. For the full year
2016, return on average assets was 1.13 percent and return on average
common equity was 11.4 percent.
Operating Performance
Net interest income grew to $155.4 million in the fourth quarter 2016, increasing 14 percent from the fourth quarter 2015 and 7 percent from the third quarter 2016, primarily driven by growth in average loans of 13 percent compared to fourth quarter 2015 and 4 percent compared to the third quarter 2016.
Net interest margin was 3.23 percent in the fourth quarter 2016, declining two basis points from a year ago and increasing five basis points from the third quarter 2016. For the full year 2016, net interest margin increased by four basis points from the prior year. Loan yields increased eight basis points from the third quarter 2016, attributable to higher loan fees tied to early loan repayments and continued upwards movement in LIBOR. The level of loan fees tends to be uneven quarter-to-quarter, dependent on when loans pay off during their term as well as whether early termination fees exist. Approximately 70 percent of the loan portfolio at year end was tied to one-month LIBOR, which was 77 basis points at December 31, 2016, compared to 43 basis points a year ago and 53 basis points at September 30, 2016, with most of the fourth quarter 2016 increase occurring in December. The interest rate moves during December 2016 are expected to be more impactful to loan yields during the first quarter 2017, as a meaningful portion of our variable loan portfolio reprices toward the beginning of the month. Excluding the contribution from loan fees, hedging, and the movement in LIBOR, loan yields were stable in the current environment. Deposit costs increased by one basis point from the third quarter 2016 and 10 basis points year-over year, but the impact on margin was mitigated by growth in average noninterest-bearing funds in a higher rate environment. As of year-end 2016, we had $1.7 billion of deposits indexed to the Fed funds effective or target rate, and the full effect of the December 2016 increase in the Fed funds effective rate will be reflected in first quarter 2017 deposit costs. Further interest rate increases, or changing expectations about future short-term interest rate movements, may impact market pricing and competitive dynamics for deposits generally, which may impact overall funding costs in future periods.
Noninterest income was $39.4 million in the fourth quarter 2016, increasing $6.8 million from the fourth quarter 2015 and $1.8 million from the third quarter 2016. Other income included gains related to loan sales of $1.5 million for the fourth quarter 2016 and $1.3 million for the third quarter 2016.
Capital markets revenue of $8.8 million for the fourth quarter 2016 reflected a positive credit valuation adjustment (CVA) of $3.1 million, compared to $1.0 million for the fourth quarter 2015 and $910,000 for the third quarter 2016. Excluding the CVA impact for all periods, capital markets revenue was $5.7 million in the fourth quarter 2016, compared to $5.3 million for the fourth quarter 2015 and $4.5 million for the third quarter 2016. Results for the fourth quarter 2016 reflected higher interest rate derivative activity from the comparative periods. Meaningful interest rate movements in fourth quarter 2016 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 12 percent from the fourth quarter 2015 and 3 percent from the third quarter 2016. Syndication fees were $5.1 million for the fourth quarter 2016, compared to $4.8 million for the fourth quarter 2015 and $4.7 million for the third quarter 2016. Syndication fees vary from quarter to quarter depending on the level and mix of loans originated and distributed.
Asset management revenue was $5.3 million in the fourth quarter 2016, increasing 20 percent from the fourth quarter 2015 and declining 6 percent from the third quarter 2016. Assets under management and administration were $9.7 billion at December 31, 2016, compared to $7.3 billion a year ago and $10.0 billion at September 30, 2016. Managed assets remained relatively consistent on a linked quarter basis. Custody assets declined by $351.5 million from September 30, 2016, reflecting a continuation of expected outflows from a large corporate trust account added during the first quarter 2016.
Expenses
Noninterest expense for the fourth quarter 2016 increased $12.8 million from the fourth quarter 2015 and $3.9 million from the third quarter 2016. The efficiency ratio was 48.9 percent for the fourth quarter 2016, compared to 48.7 percent for the fourth quarter 2015 and 49.9 percent for the third quarter 2016.
Higher incentive compensation accruals tied to improved performance primarily drove an increase in salaries and benefits expense of 4 percent from the third quarter 2016. Compared to the fourth quarter 2015, salaries and benefits expense increased 11 percent, primarily reflecting annual salary adjustments made during the first quarter and additional hires over the last year, as well as higher incentives tied to company performance. First quarter 2017 salaries and benefits expense will include seasonally higher payroll taxes and employee benefits.
Other expenses includes the provision for unfunded commitments, which was $1.5 million for the fourth quarter 2016, compared to $1.9 million for the third quarter 2016 and a release of reserves for unfunded commitments of $3.5 million for the fourth quarter 2015.
Credit Quality
The allowance for loan losses was $185.8 million, or 1.23 percent of total loans, at December 31, 2016, compared to $180.3 million, or 1.23 percent of total loans, at September 30, 2016. The provision for loan losses was $6.1 million for the fourth quarter 2016, compared to $2.9 million for the fourth quarter 2015 and $15.9 million for the third quarter 2016. Provision for loan loss for the third quarter 2016 included $5.6 million related to a single lending relationship. The increase in the general reserve from September 30, 2016 reflected strong loan growth and some level of credit migration. Specific reserve levels were relatively consistent on a linked quarter basis. 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 net charge-offs to average loans were 0.02 percent for the fourth quarter 2016, compared to 0.15 percent for the fourth quarter 2015 and 0.12 percent for the third quarter 2016.
Nonperforming assets were 0.47 percent of total assets at December 31, 2016, compared to 0.52 percent at September 30, 2016. At December 31, 2016, nonperforming loans were $83.7 million, or 0.56 percent of total loans, declining from $87.4 million, or 0.60 percent of total loans, at September 30, 2016. OREO declined $1.8 million from September 30, 2016 to $10.2 million at December 31, 2016.
Balance Sheet
Total assets were $20.1 billion at December 31, 2016, compared to $17.3 billion at December 31, 2015, and $19.1 billion at September 30, 2016. Total loans of $15.1 billion increased 13 percent from December 31, 2015, and 3 percent from September 30, 2016. Loan growth for the fourth quarter 2016 reflected loans to new clients of $652.3 million, partially offset by payoffs being higher than the five-quarter average and lower draws on revolving loans. At December 31, 2016, 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 $18.1 billion at December 31, 2016, compared to $15.6 billion at December 31, 2015, and $17.2 billion at September 30, 2016. Total deposits were $16.1 billion at December 31, 2016, increasing 12 percent from December 31, 2015, and 4 percent from September 30, 2016. Similar to prior years, deposit flows were stronger in the second half of 2016 compared to the first half. Deposit growth included an increase in noninterest-bearing demand deposits of $840.9 million from a year ago and $339.1 million from September 30, 2016. During 2016, deposit funding was supplemented with short-term borrowings, which increased by $1.2 billion from December 31, 2015 and $311.0 million from September 30, 2016.
Net accumulated other comprehensive income, net of tax declined $32.3 million from September 30, 2016, largely driven by a change in the value of the available-for-sale securities portfolio as a result of the increase in interest rates during the fourth quarter 2016.
Capital
As of December 31, 2016, the total risk-based capital ratio was 12.49 percent, the Tier 1 risk-based capital ratio was 10.73 percent, and the leverage ratio was 10.28 percent. The common equity Tier 1 ratio was 9.83 percent and the tangible common equity ratio was 9.14 percent at the end of the year end 2016.
Pending Transaction with CIBC
On June 29, 2016, PrivateBancorp announced that it had entered into a definitive agreement for a strategic merger transaction with CIBC, a leading Canadian bank. The completion of the transaction remains subject to the receipt of PrivateBancorp stockholder approval and CIBC's receipt of required regulatory approvals. As previously announced, the special meeting of stockholders to vote on the transaction, originally scheduled for December 8, 2016, was postponed. The Board of Directors of PrivateBancorp will establish a new record date and meeting date for the special meeting of stockholders, which will be announced once determined.
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 December 31, 2016, the Company had 35 offices in 13 states and $20.1 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:
-- 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;
-- uncertainty regarding 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 adjustments in the pace of, or market expectations for,
future interest rate changes;
-- 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.
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 the fiscal year ended December 31, 2015, and the "Management's Discussion and Analysis of Financial Condition and Results of Operations" section of our Form 10-Q for the quarter ended September 30, 2016, 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 Year Ended
December 31, December 31,
2016 2015 2016 2015
---- ---- ---- ----
Unaudited Unaudited Unaudited Audited
Interest Income
Loans, including fees $158,061 $137,006 $591,051 $517,461
Federal funds sold and
interest-bearing deposits
in banks 422 229 1,477 903
Securities:
Taxable 16,891 14,587 62,542 55,283
Exempt from Federal income
taxes 2,375 2,306 9,326 8,270
Other interest income 163 115 622 295
--- --- --- ---
Total interest income 177,912 154,243 665,018 582,212
------- ------- ------- -------
Interest Expense
Deposits 16,300 12,364 58,574 47,106
Short-term borrowings 1,118 201 3,413 656
Long-term debt 5,113 5,087 20,605 20,035
----- ----- ------ ------
Total interest expense 22,531 17,652 82,592 67,797
------ ------ ------ ------
Net interest income 155,381 136,591 582,426 514,415
Provision for loan and
covered loan losses 6,048 2,831 33,710 14,790
----- ----- ------ ------
Net interest income after
provision for loan and
covered loan losses 149,333 133,760 548,716 499,625
------- ------- ------- -------
Non-interest Income
Asset management 5,266 4,392 21,120 17,958
Mortgage banking 3,259 2,812 15,895 14,079
Capital markets products 8,824 6,341 25,323 18,530
Treasury management 8,849 7,883 33,942 30,641
Loan, letter of credit and
commitment fees 5,312 4,958 21,343 20,648
Syndication fees 5,137 4,844 20,956 17,205
Deposit service charges and
fees and other income 2,765 1,389 8,068 10,129
Net securities gains - 29 1,111 822
--- --- ----- ---
Total non-interest income 39,412 32,648 147,758 130,012
------ ------ ------- -------
Non-interest Expense
Salaries and employee
benefits 58,223 52,619 227,777 205,019
Net occupancy and equipment
expense 7,836 7,127 29,162 28,214
Technology and related
costs 6,660 5,221 23,722 18,761
Marketing 4,580 4,196 17,496 16,122
Professional services 3,535 2,746 18,884 11,320
Outsourced servicing costs 930 1,994 6,201 7,494
Net foreclosed property
expenses 1,633 1,217 3,524 4,210
Postage, telephone, and
delivery 823 964 3,426 3,582
Insurance 4,066 3,644 15,796 13,972
Loan and collection expense 2,611 1,754 8,132 8,556
Other expenses 4,947 1,538 18,353 15,987
----- ----- ------ ------
Total non-interest expense 95,844 83,020 372,473 333,237
------ ------ ------- -------
Income before income taxes 92,901 83,388 324,001 296,400
Income tax provision 33,353 31,251 115,644 111,089
------ ------ ------- -------
Net income available to
common stockholders $59,548 $52,137 $208,357 $185,311
======= ======= ======== ========
Per Common Share Data
Basic earnings per share $0.75 $0.66 $2.62 $2.36
Diluted earnings per share $0.73 $0.65 $2.57 $2.32
Cash dividends declared $0.01 $0.01 $0.04 $0.04
Weighted-average common
shares outstanding 79,189 78,366 78,900 77,968
Weighted-average diluted
common shares outstanding 81,083 79,738 80,484 79,206
Note: Certain reclassifications have been made to prior period amounts to conform to the current period presentation.
Consolidated Income Statements
(Amounts in thousands, except per share data)
(Unaudited)
4Q16 3Q16 2Q16 1Q16 4Q15
---- ---- ---- ---- ----
Interest Income
Loans, including fees $158,061 $148,759 $144,164 $140,067 $137,006
Federal funds sold and
interest-bearing
deposits in banks 422 380 335 340 229
Securities:
Taxable 16,891 15,283 15,158 15,210 14,587
Exempt from Federal
income taxes 2,375 2,322 2,296 2,333 2,306
Other interest income 163 139 170 150 115
--- --- --- --- ---
Total interest income 177,912 166,883 162,123 158,100 154,243
------- ------- ------- ------- -------
Interest Expense
Deposits 16,300 15,238 13,895 13,141 12,364
Short-term borrowings 1,118 1,070 995 230 201
Long-term debt 5,113 5,065 5,216 5,211 5,087
----- ----- ----- ----- -----
Total interest expense 22,531 21,373 20,106 18,582 17,652
------ ------ ------ ------ ------
Net interest income 155,381 145,510 142,017 139,518 136,591
Provision for loan and
covered loan losses 6,048 15,691 5,569 6,402 2,831
----- ------ ----- ----- -----
Net interest income
after provision for
loan and covered loan
losses 149,333 129,819 136,448 133,116 133,760
------- ------- ------- ------- -------
Non-interest Income
Asset management 5,266 5,590 5,539 4,725 4,392
Mortgage banking 3,259 5,060 4,607 2,969 2,812
Capital markets products 8,824 5,448 5,852 5,199 6,341
Treasury management 8,849 8,617 8,290 8,186 7,883
Loan, letter of credit
and commitment fees 5,312 5,293 5,538 5,200 4,958
Syndication fees 5,137 4,721 5,664 5,434 4,844
Deposit service charges
and fees and other
income 2,765 2,885 1,060 1,358 1,389
Net securities gains - - 580 531 29
--- --- --- --- ---
Total non-interest
income 39,412 37,614 37,130 33,602 32,648
------ ------ ------ ------ ------
Non-interest Expense
Salaries and employee
benefits 58,223 55,889 55,326 58,339 52,619
Net occupancy and
equipment expense 7,836 7,099 7,012 7,215 7,127
Technology and related
costs 6,660 6,282 5,487 5,293 5,221
Marketing 4,580 4,587 3,925 4,404 4,196
Professional services 3,535 2,865 9,490 2,994 2,746
Outsourced servicing
costs 930 1,379 2,052 1,840 1,994
Net foreclosed property
expenses 1,633 965 360 566 1,217
Postage, telephone, and
delivery 823 818 945 840 964
Insurance 4,066 3,931 3,979 3,820 3,644
Loan and collection
expense 2,611 1,972 2,017 1,532 1,754
Other expenses 4,947 6,133 3,623 3,650 1,538
----- ----- ----- ----- -----
Total non-interest
expense 95,844 91,920 94,216 90,493 83,020
------ ------ ------ ------ ------
Income before income
taxes 92,901 75,513 79,362 76,225 83,388
Income tax provision 33,353 26,621 28,997 26,673 31,251
------ ------ ------ ------ ------
Net income available to
common stockholders $59,548 $48,892 $50,365 $49,552 $52,137
======= ======= ======= ======= =======
Per Common Share Data
Basic earnings per share $0.75 $0.61 $0.63 $0.63 $0.66
Diluted earnings per
share $0.73 $0.60 $0.62 $0.62 $0.65
Cash dividends declared $0.01 $0.01 $0.01 $0.01 $0.01
Weighted-average common
shares outstanding 79,189 79,007 78,849 78,550 78,366
Weighted-average
diluted common shares
outstanding 81,083 80,673 80,317 79,856 79,738
Consolidated Balance Sheets
(Dollars in thousands)
12/31/16 9/30/16 6/30/16 3/31/16 12/31/15
-------- ------- ------- ------- --------
Unaudited Unaudited Unaudited Unaudited Audited
Assets
Cash and due from
banks $161,168 $166,607 $155,292 $133,001 $145,147
Federal funds sold and
interest-bearing
deposits in banks 587,563 245,193 230,036 337,465 238,511
Loans held-for-sale 103,284 75,438 61,360 64,029 108,798
Securities available-
for-sale, at fair
value 2,013,525 1,961,099 1,864,636 1,831,848 1,765,366
Securities held-to-
maturity, at
amortized cost 1,738,123 1,633,235 1,435,334 1,456,760 1,355,283
Federal Home Loan Bank
("FHLB") stock 54,163 30,213 21,113 38,113 26,613
Loans - excluding
covered assets, net
of unearned fees 15,056,241 14,654,570 14,035,808 13,457,665 13,266,475
Allowance for loan
losses (185,765) (180,268) (168,615) (165,356) (160,736)
-------- -------- -------- -------- --------
Loans, net of
allowance for loan
losses and unearned
fees 14,870,476 14,474,302 13,867,193 13,292,309 13,105,739
Covered assets 22,063 23,889 25,151 25,769 26,954
Allowance for covered
loan losses (4,766) (4,879) (5,525) (5,526) (5,712)
------ ------ ------ ------ ------
Covered assets, net of
allowance for covered
loan losses 17,297 19,010 19,626 20,243 21,242
Other real estate
owned, excluding
covered assets 10,203 12,035 14,532 14,806 7,273
Premises, furniture,
and equipment, net 46,967 44,760 43,394 41,717 42,405
Accrued interest
receivable 57,986 48,512 47,209 47,349 45,482
Investment in bank
owned life insurance 58,115 57,750 57,380 57,011 56,653
Goodwill 94,041 94,041 94,041 94,041 94,041
Other intangible
assets 1,269 1,809 2,349 2,890 3,430
Derivative assets 27,965 62,094 80,995 66,406 40,615
Other assets 211,628 179,462 174,701 169,384 196,250
------- ------- ------- ------- -------
Total assets $20,053,773 $19,105,560 $18,169,191 $17,667,372 $17,252,848
=========== =========== =========== =========== ===========
Liabilities
Deposits:
Noninterest-bearing $5,196,587 $4,857,470 $4,511,893 $4,338,177 $4,355,700
Interest-bearing 10,868,642 10,631,384 10,045,501 10,126,692 9,989,892
----------
Total deposits 16,065,229 15,488,854 14,557,394 14,464,869 14,345,592
Short-term borrowings 1,544,746 1,233,318 1,287,934 602,365 372,467
Long-term debt 338,310 338,286 338,262 688,238 688,215
Accrued interest
payable 9,063 7,953 7,967 6,630 7,080
Derivative liabilities 18,122 19,236 27,940 22,498 18,229
Other liabilities 158,628 135,559 118,544 114,781 122,314
------- ------- ------- ------- -------
Total liabilities 18,134,098 17,223,206 16,338,041 15,899,381 15,553,897
---------- ---------- ---------- ---------- ----------
Equity
Common stock 79,313 79,101 78,918 78,894 78,439
Treasury stock - - - (4,389) (103)
Additional paid-in
capital 1,101,946 1,091,275 1,082,173 1,078,470 1,071,674
Retained earnings 736,798 678,059 629,976 580,418 531,682
Accumulated other
comprehensive income,
net of tax 1,618 33,919 40,083 34,598 17,259
----- ------ ------ ------ ------
Total equity 1,919,675 1,882,354 1,831,150 1,767,991 1,698,951
--------- --------- --------- --------- ---------
Total liabilities and
equity $20,053,773 $19,105,560 $18,169,191 $17,667,372 $17,252,848
=========== =========== =========== =========== ===========
Selected Financial Data
(Amounts in thousands, except per share data)
(Unaudited)
4Q16 3Q16 2Q16 1Q16 4Q15
---- ---- ---- ---- ----
Selected Statement of Income Data:
Net interest income $155,381 $145,510 $142,017 $139,518 $136,591
Net revenue (1)(2) $196,027 $184,331 $180,341 $174,337 $170,445
Operating profit
(1)(2) $100,183 $92,411 $86,125 $83,844 $87,425
Provision for loan
and covered loan
losses $6,048 $15,691 $5,569 $6,402 $2,831
Income before income
taxes $92,901 $75,513 $79,362 $76,225 $83,388
Net income available
to common
stockholders $59,548 $48,892 $50,365 $49,552 $52,137
Per Common Share Data:
Basic earnings per
share $0.75 $0.61 $0.63 $0.63 $0.66
Diluted earnings per
share $0.73 $0.60 $0.62 $0.62 $0.65
Dividends declared $0.01 $0.01 $0.01 $0.01 $0.01
Book value (period
end) (1) $24.04 $23.64 $23.04 $22.29 $21.48
Tangible book value
(period end) (1)(2) $22.85 $22.43 $21.83 $21.07 $20.25
Market value (period
end) $54.19 $45.92 $44.03 $38.60 $41.02
Book value multiple
(period end) 2.25 x 1.94 x 1.91 x 1.73 x 1.91 x
Share Data:
Weighted-average
common shares
outstanding 79,189 79,007 78,849 78,550 78,366
Weighted-average
diluted common
shares outstanding 81,083 80,673 80,317 79,856 79,738
Common shares issued
(period end) 79,849 79,640 79,464 79,443 79,099
Common shares
outstanding (period
end) 79,849 79,640 79,464 79,322 79,097
Performance Ratio:
Return on average
common equity 12.40% 10.40% 11.20% 11.40% 12.29%
Return on average
assets 1.21% 1.04% 1.14% 1.15% 1.21%
Return on average
tangible common
equity (1)(2) 13.12% 11.04% 11.91% 12.16% 13.13%
Net interest margin
(1)(2) 3.23% 3.18% 3.28% 3.30% 3.25%
Fee revenue as a
percent of total
revenue (1) 20.23% 20.54% 20.47% 19.16% 19.28%
Non-interest income
to average assets 0.80% 0.80% 0.84% 0.78% 0.75%
Non-interest expense
to average assets 1.95% 1.96% 2.12% 2.09% 1.92%
Net overhead ratio
(1) 1.15% 1.16% 1.29% 1.32% 1.16%
Efficiency ratio
(1)(2) 48.89% 49.87% 52.24% 51.91% 48.71%
Balance Sheet Ratios:
Loans to deposits
(period end) (3) 93.72% 94.61% 96.42% 93.04% 92.48%
Average interest-
earning assets to
average interest-
bearing liabilities 155.71% 153.16% 151.10% 153.64% 152.94%
Capital Ratios (period end):
Total risk-based
capital (1) 12.49% 12.41% 12.42% 12.56% 12.37%
Tier 1 risk-based
capital (1) 10.73% 10.64% 10.66% 10.76% 10.56%
Tier 1 leverage ratio
(1) 10.28% 10.43% 10.56% 10.50% 10.35%
Common equity Tier 1
(1) 9.83% 9.71% 9.70% 9.76% 9.54%
Tangible common
equity to tangible
assets (1)(2) 9.14% 9.40% 9.60% 9.51% 9.34%
Total equity to total
assets 9.57% 9.85% 10.08% 10.01% 9.85%
(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)
4Q16 3Q16 2Q16 1Q16 4Q15
---- ---- ---- ---- ----
Additional Selected Information:
Decrease (increase)
credit valuation
adjustment on
capital markets
derivatives (1) $3,112 $910 $(1,033) $(1,904) $1,043
Salaries and employee benefits:
Salaries and wages $30,974 $30,923 $30,335 $28,963 $28,113
Share-based costs 5,034 4,728 4,618 6,357 4,871
Incentive
compensation and
commissions 17,144 15,604 15,882 13,307 14,676
Payroll taxes,
insurance and
retirement costs 5,071 4,634 4,491 9,712 4,959
Total salaries and
employee benefits $58,223 $55,889 $55,326 $58,339 $52,619
Loan and collection expense:
Loan origination and
servicing expense $1,281 $1,716 $1,666 $1,297 $1,445
Loan remediation
expense 1,330 256 351 235 309
----- --- --- --- ---
Total loan and
collection expense $2,611 $1,972 $2,017 $1,532 $1,754
Transaction related
expenses $329 $106 $6,270 $ - $ -
Assets under management and
administration (AUMA):
Personal managed $2,046,758 $2,068,772 $2,017,797 $1,867,572 $1,872,737
Corporate and
institutional
managed 2,643,041 2,653,264 2,526,043 1,592,394 1,787,187
--------- --------- --------- --------- ---------
Total managed assets 4,689,799 4,722,036 4,543,840 3,459,966 3,659,924
Custody assets 4,975,269 5,326,757 6,145,445 6,161,827 3,631,149
---------
Total AUMA $9,665,068 $10,048,793 $10,689,285 $9,621,793 $7,291,073
========== =========== =========== ========== ==========
(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-2016-earnings-300392564.html
SOURCE PrivateBancorp, Inc.
