PRIVATEBANCORP INC CHICAGO, July 21, 2016 /PRNewswire/ -- PrivateBancorp, Inc. (NASDAQ: PVTB) today reported net income of $50.4 million, or $0.62 per diluted share, for the second quarter 2016, compared to $46.4 million, or $0.58 per diluted share, for the second quarter 2015, and $49.6 million, or $0.62 per diluted share, for the first quarter 2016. Second quarter 2016 results included $6.3 million of costs related to the Company's recently announced transaction with CIBC, which reduced earnings per share by $0.05 on an after-tax basis. For the six months ended June 30, 2016, the Company had net income of $99.9 million, or $1.24 per diluted share, compared to $87.9 million, or $1.10 per diluted share, for the six months ended June 30, 2015.
"Our second quarter results reflect strong client growth, coupled with lower payoffs, which helped drive net loan growth higher this quarter compared to first quarter," said Larry D. Richman, President and Chief Executive Officer, PrivateBancorp, Inc. "Our success in building deep and lasting client relationships led to an 8 percent increase in net income year over year to $50.4 million, with an 11 percent increase in net interest income and a 12 percent increase in noninterest income.
"At the end of the quarter, we announced our strategic transaction with CIBC, a leading Canadian bank that shares our commitment to clients, communities and team members," Richman continued. "We look forward to continuing to execute our strategy with the additional strength and depth of resources CIBC will bring following the completion of the transaction, currently expected in first quarter 2017."
Second Quarter 2016 Highlights
-- During the quarter, total loans grew to $14.0 billion, up $1.5 billion
from a year ago and $578.1 million from March 31, 2016, driven primarily
by activity in commercial and industrial and commercial real estate
loans.
-- Total deposits were $14.6 billion, increasing $1.2 billion from a year
ago and $92.5 million from March 31, 2016. Noninterest-bearing demand
deposits grew 22 percent from a year ago, representing 31 percent of
total deposits at June 30, 2016, compared to 30 percent at March 31,
2016.
-- Net interest margin was 3.28 percent, compared to 3.17 percent for the
second quarter 2015 and 3.30 percent for the first quarter 2016.
-- Operating profit of $86.1 million benefited from continued growth in
earning assets and higher fee income, increasing 12 percent from the
second quarter 2015 and 3 percent from the first quarter 2016.
Non-interest expense for the second quarter 2016 included $6.3 million
of transaction-related costs, which reduced earnings per share by $0.05
on an after-tax basis.
-- The provision for loan and covered loan losses was $5.6 million for the
second quarter 2016, compared to $2.1 million for the second quarter
2015 and $6.4 million for the first quarter 2016.
-- Return on average assets was 1.14 percent and return on average common
equity was 11.2 percent for the second quarter 2016.
Operating Performance
Net interest income grew to $142.0 million in the second quarter 2016, increasing 14 percent from the second quarter 2015 and 2 percent from the first quarter 2016, primarily driven by growth in average loans of 10 percent compared to second quarter 2015 and 3 percent compared to the first quarter 2016. The December 2015 interest rate increase also contributed to higher net interest income compared to the prior year period.
Net interest margin was 3.28 percent in the second quarter 2016, up 11 basis points from a year ago and down 2 basis points from the first quarter 2016. Loan yields were slightly higher on a sequential basis, largely reflecting higher loan fees and interest recoveries on previous nonaccrual loans, which contributed 5 basis points in total to loan yields for the second quarter 2016. The level of loan fees tends to be uneven quarter-to-quarter. Excluding the contribution from loan fees and hedging, loan yields continue to compress in the current environment. Securities yields declined 8 basis points from the first quarter 2016, as the low rate environment has accelerated prepayment speeds and reduced yields on securities purchased during the quarter. Higher rates paid on certain money market accounts contributed to a slight rise in deposit costs on a sequential basis.
Noninterest income was $37.1 million in the second quarter 2016, increasing 12 percent from the second quarter 2015 and 10 percent from the first quarter 2016. Treasury management fees were $8.3 million in the second quarter 2016, up 12 percent from the second quarter 2015 and 1 percent from the first quarter 2016, primarily reflecting the onboarding of new commercial clients. Mortgage banking revenue was seasonally stronger, increasing $1.6 million on a sequential basis and reflecting a higher volume of loans sold. Capital markets revenue for the second quarter 2016 reflected a negative credit valuation adjustment (CVA) of $1.0 million, compared to a negative CVA of $1.9 million for the first quarter 2016. Excluding the CVA impact for all periods, capital markets revenue was $6.9 million in the second quarter 2016, declining slightly from the first quarter 2016.
Asset management revenue was $5.5 million in the second quarter 2016, increasing 17 percent from the second quarter 2015 and the first quarter 2016. The addition of a custodial account totaling $2.4 billion late in the first quarter 2016 contributed approximately two-thirds of the increase in asset management revenue on a sequential basis. It is anticipated that this account will be reduced by approximately $1.4 billion by the end of the third quarter 2016 as funds are disbursed or redeployed. Assets under management and administration were $10.7 billion as of June 30, 2016, compared to $7.5 billion a year ago and $9.6 billion at March 31, 2016.
Expenses
Noninterest expense for the second quarter 2016 increased $12.3 million from the second quarter 2015 and $3.7 million from the first quarter 2016. Included in second quarter 2016 non-interest expense were $6.3 million of transaction-related expenses that were largely reflected in professional services expense. The efficiency ratio was 52.2 percent for the second quarter 2016, compared to 51.6 percent for the second quarter 2015 and 51.9 percent for the first quarter 2016. The transaction-related expenses increased the second quarter 2016 efficiency ratio by 340 basis points.
Salaries and benefits expense declined $3.0 million compared to the first quarter 2016, as sequentially lower payroll taxes and benefits expense were partially offset by a full quarter's impact of annual salary adjustments and additional performance-based incentive compensation accruals. Compared to the second quarter 2015, compensation expense increased $5.3 million, largely reflecting additional hires made over the last year and annual salary adjustments.
The effective tax rate for the second quarter 2016 was 36.5 percent, compared to 37.0 percent for the second quarter 2015 and 35.0 percent for the first quarter 2016. The lower tax rate in the first quarter 2016 was primarily attributable to net tax benefits of $1.5 million, largely related to the adoption of a new accounting standard regarding income taxes associated with share-based compensation.
Credit Quality
The allowance for loan losses was $168.6 million, or 1.20 percent of total loans, at June 30, 2016, compared to $165.4 million, or 1.23 percent of total loans, at March 31, 2016. The provision for loan losses was $5.6 million for the second quarter 2016, increasing $3.5 million from the second quarter 2015 and $866,000 from the first quarter 2016. Annualized net charge-offs to average loans were 0.07 percent for the second quarter 2016, compared to 0.05 percent for the second quarter 2015 and the first quarter 2016.
Nonperforming assets were 0.44 percent of total assets at June 30, 2016, compared to 0.42 percent at March 31, 2016. At June 30, 2016, nonperforming loans were $65.4 million, increasing $6.4 million from March 31, 2016. OREO increased $274,000 to $14.5 million at June 30, 2016.
Balance Sheet
Total assets were $18.2 billion at June 30, 2016, compared to $16.2 billion at June 30, 2015, and $17.7 billion at March 31, 2016. Total loans of $14.0 billion increased 12 percent from June 30, 2015, and 4 percent from March 31, 2016. Loan growth for the second quarter 2016 reflected loans to new clients of $421.9 million, payoffs lower than the five quarter average, and higher draws on revolving loans. At June 30, 2016, commercial loans represented 64 percent of total loans compared to 65 percent at March 31, 2016, and commercial real estate and construction loans represented 30 percent of total loans, compared to 29 percent of total loans at March 31, 2016.
Total liabilities were $16.3 billion at June 30, 2016, compared to $14.6 billion at June 30, 2015, and $15.9 billion at March 31, 2016. Total deposits were $14.6 billion at June 30, 2016, increasing 9 percent from June 30, 2015, and 1 percent from March 31, 2016. Noninterest-bearing demand deposits increased $173.7 million from March 31, 2016, representing 31 percent of total deposits at June 30, 2016, compared to 28 percent a year ago and 30 percent at March 31, 2016. Deposit funding was supplemented during the second quarter 2016 by an increase in traditional brokered deposits and short-term borrowings. At June 30, 2016, the loan-to-deposit ratio was 96 percent, compared to 94 percent as of June 30, 2015, and 93 percent as of March 31, 2016. Given the nature of our commercial client base, deposit balances have historically increased in the second half of the year compared to the first half.
Capital
As of June 30, 2016, the total risk-based capital ratio was 12.42 percent, the Tier 1 risk-based capital ratio was 10.66 percent, and the leverage ratio was 10.56 percent. The common equity Tier 1 ratio was 9.70 percent and the tangible common equity ratio was 9.60 percent at the end of the second quarter 2016.
No Quarterly Conference Call
In light of PrivateBancorp's announcement regarding its proposed transaction with CIBC, PrivateBancorp does not intend to conduct an earnings conference call to discuss second quarter 2016 results.
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 June 30, 2016, the Company had 34 offices in 12 states and $18.2 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 March 31, 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)
(Unaudited)
Three Months Ended June 30, Six Months Ended June 30,
--------------------------- -------------------------
2016 2015 2016 2015
---- ---- ---- ----
Interest Income
Loans, including fees $144,164 $125,647 $284,231 $248,349
Federal funds sold and
interest-bearing deposits
in banks 335 245 675 506
Securities:
Taxable 15,158 13,541 30,368 27,097
Exempt from Federal income
taxes 2,296 1,981 4,629 3,787
Other interest income 170 63 320 111
--- --- --- ---
Total interest income 162,123 141,477 320,223 279,850
------- ------- ------- -------
Interest Expense
Deposits 13,895 11,649 27,036 22,904
Short-term borrowings 995 234 1,225 431
Long-term debt 5,216 4,972 10,427 9,900
----- ----- ------ -----
Total interest expense 20,106 16,855 38,688 33,235
------ ------ ------ ------
Net interest income 142,017 124,622 281,535 246,615
Provision for loan and
covered loan losses 5,569 2,116 11,971 7,762
----- ----- ------ -----
Net interest income after
provision for loan and
covered loan losses 136,448 122,506 269,564 238,853
------- ------- ------- -------
Non-interest Income
Asset management 5,539 4,741 10,264 9,104
Mortgage banking 4,607 4,152 7,576 7,927
Capital markets products 5,852 4,919 11,051 9,091
Treasury management 8,290 7,421 16,476 14,748
Loan, letter of credit and
commitment fees 5,538 4,914 10,738 10,020
Syndication fees 5,664 5,375 11,098 7,997
Deposit service charges and
fees and other income 1,060 1,538 2,418 7,155
Net securities gains
(losses) 580 (1) 1,111 533
--- --- ----- ---
Total non-interest income 37,130 33,059 70,732 66,575
------ ------ ------ ------
Non-interest Expense
Salaries and employee
benefits 55,326 50,020 113,665 102,381
Net occupancy and equipment
expense 7,012 7,055 14,227 13,989
Technology and related
costs 5,487 4,524 10,780 8,875
Marketing 3,925 4,666 8,329 8,244
Professional services 9,490 2,585 12,484 4,895
Outsourced servicing costs 2,052 2,034 3,892 3,714
Net foreclosed property
expenses 360 585 926 1,913
Postage, telephone, and
delivery 945 899 1,785 1,761
Insurance 3,979 3,450 7,799 6,661
Loan and collection expense 2,017 2,210 3,549 4,478
Other expenses 3,623 3,869 7,273 8,131
----- ----- ----- -----
Total non-interest expense 94,216 81,897 184,709 165,042
------ ------ ------- -------
Income before income taxes 79,362 73,668 155,587 140,386
Income tax provision 28,997 27,246 55,670 52,480
------ ------ ------ ------
Net income available to
common stockholders $50,365 $46,422 $99,917 $87,906
======= ======= ======= =======
Per Common Share Data
Basic earnings per share $0.63 $0.59 $1.26 $1.12
Diluted earnings per share $0.62 $0.58 $1.24 $1.10
Cash dividends declared $0.01 $0.01 $0.02 $0.02
Weighted-average common
shares outstanding 78,849 77,942 78,699 77,676
Weighted-average diluted
common shares outstanding 80,317 79,158 80,086 78,837
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)
2Q16 1Q16 4Q15 3Q15 2Q15
---- ---- ---- ---- ----
Interest Income
Loans, including fees $144,164 $140,067 $137,006 $132,106 $125,647
Federal funds sold and
interest-bearing deposits
in banks 335 340 229 168 245
Securities:
Taxable 15,158 15,210 14,587 13,599 13,541
Exempt from Federal income
taxes 2,296 2,333 2,306 2,177 1,981
Other interest income 170 150 115 69 63
--- --- --- --- ---
Total interest income 162,123 158,100 154,243 148,119 141,477
------- ------- ------- ------- -------
Interest Expense
Deposits 13,895 13,141 12,364 11,838 11,649
Short-term borrowings 995 230 201 24 234
Long-term debt 5,216 5,211 5,087 5,048 4,972
----- ----- ----- ----- -----
Total interest expense 20,106 18,582 17,652 16,910 16,855
------ ------ ------ ------ ------
Net interest income 142,017 139,518 136,591 131,209 124,622
Provision for loan and
covered loan losses 5,569 6,402 2,831 4,197 2,116
----- ----- ----- ----- -----
Net interest income after
provision for loan and
covered loan losses 136,448 133,116 133,760 127,012 122,506
------- ------- ------- ------- -------
Non-interest Income
Asset management 5,539 4,725 4,392 4,462 4,741
Mortgage banking 4,607 2,969 2,812 3,340 4,152
Capital markets products 5,852 5,199 6,341 3,098 4,919
Treasury management 8,290 8,186 7,883 8,010 7,421
Loan, letter of credit and
commitment fees 5,538 5,200 4,958 5,670 4,914
Syndication fees 5,664 5,434 4,844 4,364 5,375
Deposit service charges and
fees and other income 1,060 1,358 1,389 1,585 1,538
Net securities gains
(losses) 580 531 29 260 (1)
--- --- --- --- ---
Total non-interest income 37,130 33,602 32,648 30,789 33,059
------ ------ ------ ------ ------
Non-interest Expense
Salaries and employee
benefits 55,326 58,339 52,619 50,019 50,020
Net occupancy and equipment
expense 7,012 7,215 7,127 7,098 7,055
Technology and related
costs 5,487 5,293 5,221 4,665 4,524
Marketing 3,925 4,404 4,196 3,682 4,666
Professional services 9,490 2,994 2,746 3,679 2,585
Outsourced servicing costs 2,052 1,840 1,994 1,786 2,034
Net foreclosed property
expenses 360 566 1,217 1,080 585
Postage, telephone, and
delivery 945 840 964 857 899
Insurance 3,979 3,820 3,644 3,667 3,450
Loan and collection expense 2,017 1,532 1,754 2,324 2,210
Other expenses 3,623 3,650 1,538 6,318 3,869
----- ----- ----- ----- -----
Total non-interest expense 94,216 90,493 83,020 85,175 81,897
------ ------ ------ ------ ------
Income before income taxes 79,362 76,225 83,388 72,626 73,668
Income tax provision 28,997 26,673 31,251 27,358 27,246
------ ------ ------ ------ ------
Net income available to
common stockholders $50,365 $49,552 $52,137 $45,268 $46,422
======= ======= ======= ======= =======
Per Common Share Data
Basic earnings per share $0.63 $0.63 $0.66 $0.58 $0.59
Diluted earnings per share $0.62 $0.62 $0.65 $0.57 $0.58
Cash dividends declared $0.01 $0.01 $0.01 $0.01 $0.01
Weighted-average common
shares outstanding 78,849 78,550 78,366 78,144 77,942
Weighted-average diluted
common shares outstanding 80,317 79,856 79,738 79,401 79,158
Note: Certain reclassifications have been made to prior period amounts to conform to the current period presentation.
Consolidated Balance Sheets
(Dollars in thousands)
6/30/16 3/31/16 12/31/15 9/30/15 6/30/15
------- ------- -------- ------- -------
Unaudited Unaudited Audited Unaudited Unaudited
Assets
Cash and due from
banks $155,292 $133,001 $145,147 $145,477 $185,983
Federal funds sold and
interest-bearing
deposits in banks 230,036 337,465 238,511 231,600 192,531
Loans held-for-sale 61,360 64,029 108,798 76,225 54,263
Securities available-
for-sale, at fair
value 1,864,636 1,831,848 1,765,366 1,703,926 1,698,233
Securities held-to-
maturity, at
amortized cost 1,435,334 1,456,760 1,355,283 1,293,433 1,199,120
Federal Home Loan Bank
("FHLB") stock 21,113 38,113 26,613 30,740 25,854
Loans - excluding
covered assets, net
of unearned fees 14,035,808 13,457,665 13,266,475 13,079,314 12,543,281
Allowance for loan
losses (168,615) (165,356) (160,736) (162,868) (157,051)
-------- -------- -------- -------- --------
Loans, net of
allowance for loan
losses and unearned
fees 13,867,193 13,292,309 13,105,739 12,916,446 12,386,230
Covered assets 25,151 25,769 26,954 28,559 30,529
Allowance for covered
loan losses (5,525) (5,526) (5,712) (6,337) (6,332)
------ ------ ------ ------ ------
Covered assets, net of
allowance for covered
loan losses 19,626 20,243 21,242 22,222 24,197
Other real estate
owned, excluding
covered assets 14,532 14,806 7,273 12,760 15,084
Premises, furniture,
and equipment, net 43,394 41,717 42,405 38,265 37,672
Accrued interest
receivable 47,209 47,349 45,482 43,064 43,442
Investment in bank
owned life insurance 57,380 57,011 56,653 56,292 55,926
Goodwill 94,041 94,041 94,041 94,041 94,041
Other intangible
assets 2,349 2,890 3,430 4,008 4,586
Derivative assets 80,995 66,406 40,615 59,978 47,442
Other assets 174,701 169,384 196,250 159,531 154,672
------- ------- ------- ------- -------
Total assets $18,169,191 $17,667,372 $17,252,848 $16,888,008 $16,219,276
=========== =========== =========== =========== ===========
Liabilities
Deposits:
Noninterest-bearing $4,511,893 $4,338,177 $4,355,700 $4,068,816 $3,702,377
Interest-bearing 10,045,501 10,126,692 9,989,892 9,828,923 9,686,559
Total deposits 14,557,394 14,464,869 14,345,592 13,897,739 13,388,936
Short-term borrowings 1,287,934 602,365 372,467 514,121 434,695
Long-term debt 338,262 688,238 688,215 688,191 688,169
Accrued interest
payable 7,967 6,630 7,080 6,509 7,543
Derivative liabilities 27,940 22,498 18,229 21,967 24,696
Other liabilities 118,544 114,781 122,314 111,482 90,441
------- ------- ------- ------- ------
Total liabilities 16,338,041 15,899,381 15,553,897 15,240,009 14,634,480
---------- ---------- ---------- ---------- ----------
Equity
Common stock 78,918 78,894 78,439 78,197 78,047
Treasury stock - (4,389) (103) (63) (29)
Additional paid-in
capital 1,082,173 1,078,470 1,071,674 1,060,274 1,051,778
Retained earnings 629,976 580,418 531,682 480,342 435,872
Accumulated other
comprehensive income,
net of tax 40,083 34,598 17,259 29,249 19,128
------ ------ ------ ------ ------
Total equity 1,831,150 1,767,991 1,698,951 1,647,999 1,584,796
--------- --------- --------- --------- ---------
Total liabilities and
equity $18,169,191 $17,667,372 $17,252,848 $16,888,008 $16,219,276
=========== =========== =========== =========== ===========
Selected Financial Data
(Amounts in thousands, except per share data)
(Unaudited)
2Q16 1Q16 4Q15 3Q15 2Q15
---- ---- ---- ---- ----
Selected Statement of Income Data:
Net interest income $142,017 $139,518 $136,591 $131,209 $124,622
Net revenue (1)(2) $180,341 $174,337 $170,445 $163,134 $158,717
Operating profit
(1)(2) $86,125 $83,844 $87,425 $77,959 $76,820
Provision for loan
and covered loan
losses $5,569 $6,402 $2,831 $4,197 $2,116
Income before income
taxes $79,362 $76,225 $83,388 $72,626 $73,668
Net income available
to common
stockholders $50,365 $49,552 $52,137 $45,268 $46,422
Per Common Share Data:
Basic earnings per
share $0.63 $0.63 $0.66 $0.58 $0.59
Diluted earnings per
share $0.62 $0.62 $0.65 $0.57 $0.58
Dividends declared $0.01 $0.01 $0.01 $0.01 $0.01
Book value (period
end) (1) $23.04 $22.29 $21.48 $20.90 $20.13
Tangible book value
(period end) (1)(2) $21.83 $21.07 $20.25 $19.65 $18.88
Market value (period
end) $44.03 $38.60 $41.02 $38.33 $39.82
Book value multiple
(period end) 1.91 x 1.73 x 1.91 x 1.83 x 1.98 x
Share Data:
Weighted-average
common shares
outstanding 78,849 78,550 78,366 78,144 77,942
Weighted-average
diluted common
shares outstanding 80,317 79,856 79,738 79,401 79,158
Common shares issued
(period end) 79,464 79,443 79,099 78,865 78,718
Common shares
outstanding (period
end) 79,464 79,322 79,097 78,863 78,717
Performance Ratio:
Return on average
common equity 11.20% 11.40% 12.29% 11.05% 11.85%
Return on average
assets 1.14% 1.15% 1.21% 1.09% 1.15%
Return on average
tangible common
equity (1)(2) 11.91% 12.16% 13.13% 11.85% 12.75%
Net interest margin
(1)(2) 3.28% 3.30% 3.25% 3.23% 3.17%
Fee revenue as a
percent of total
revenue (1) 20.47% 19.16% 19.28% 18.88% 20.97%
Non-interest income
to average assets 0.84% 0.78% 0.75% 0.74% 0.82%
Non-interest expense
to average assets 2.12% 2.09% 1.92% 2.04% 2.03%
Net overhead ratio
(1) 1.29% 1.32% 1.16% 1.30% 1.21%
Efficiency ratio
(1)(2) 52.24% 51.91% 48.71% 52.21% 51.60%
Balance Sheet Ratios:
Loans to deposits
(period end) (3) 96.42% 93.04% 92.48% 94.11% 93.68%
Average interest-
earning assets to
average interest-
bearing liabilities 151.10% 153.64% 152.94% 149.67% 144.67%
Capital Ratios (period end):
Total risk-based
capital (1) 12.42% 12.56% 12.37% 12.28% 12.41%
Tier 1 risk-based
capital (1) 10.66% 10.76% 10.56% 10.39% 10.49%
Tier 1 leverage ratio
(1) 10.56% 10.50% 10.35% 10.35% 10.24%
Common equity Tier 1
(1) 9.70% 9.76% 9.54% 9.35% 9.41%
Tangible common
equity to tangible
assets (1)(2) 9.60% 9.51% 9.34% 9.23% 9.22%
Total equity to total
assets 10.08% 10.01% 9.85% 9.75% 9.77%
(1) Refer to Glossary of Terms for
definition.
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.
(2) GAAP.
(3) Excludes covered assets. Refer
to Glossary of Terms for
definition.
Selected Financial Data (continued)
(Dollars in thousands)
(Unaudited)
2Q16 1Q16 4Q15 3Q15 2Q15
---- ---- ---- ---- ----
Additional Selected Information:
(Increase) decrease
credit valuation
adjustment on
capital markets
derivatives (1) $(1,033) $(1,904) $1,043 $(1,227) $616
Salaries and employee benefits:
Salaries and wages $30,335 $28,963 $28,113 $28,143 $27,461
Share-based costs 4,618 6,357 4,871 4,509 4,316
Incentive
compensation and
commissions 15,882 13,307 14,676 13,308 13,091
Payroll taxes,
insurance and
retirement costs 4,491 9,712 4,959 4,059 5,152
Total salaries and
employee benefits $55,326 $58,339 $52,619 $50,019 $50,020
Loan and collection expense:
Loan origination and
servicing expense $1,666 $1,297 $1,445 $1,522 $1,607
Loan remediation
expense 351 235 309 802 603
--- --- --- --- ---
Total loan and
collection expense $2,017 $1,532 $1,754 $2,324 $2,210
Transaction related
expenses $6,270 $ - $ - $ - $ -
Assets under management and
administration (AUMA):
Personal managed $2,017,797 $1,867,572 $1,872,737 $1,839,829 $1,892,973
Corporate and
institutional
managed 2,526,043 1,592,394 1,787,187 1,800,522 1,883,166
--------- --------- --------- --------- ---------
Total managed assets 4,543,840 3,459,966 3,659,924 3,640,351 3,776,139
Custody assets 6,144,472 6,161,827 3,631,149 3,519,364 3,682,388
---------
Total AUMA $10,688,312 $9,621,793 $7,291,073 $7,159,715 $7,458,527
=========== ========== ========== ========== ==========
(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-second-quarter-2016-earnings-300301885.html
SOURCE PrivateBancorp, Inc.
