PRIVATEBANCORP INC CHICAGO, Oct. 20, 2016 /PRNewswire/ -- PrivateBancorp, Inc. (NASDAQ: PVTB) today reported net income of $48.9 million, or $0.60 per diluted share, for the third quarter 2016, compared to $45.3 million, or $0.57 per diluted share, for the third quarter 2015, and $50.4 million, or $0.62 per diluted share, for the second quarter 2016. For the nine months ended September 30, 2016, the Company had net income of $148.8 million, or $1.84 per diluted share, compared to $133.2 million, or $1.67 per diluted share, for the nine months ended September 30, 2015.
"Our third quarter results reflect our continued focus on consistent execution of our strategy to build long-term client relationships," said Larry D. Richman, President and Chief Executive Officer, PrivateBancorp, Inc. "Net loan growth was $619 million, which helped to drive net interest income to $145.5 million, 11 percent higher than the year-ago quarter, and noninterest income was up over third quarter 2015 to $37.6 million. Third quarter net income of $48.9 million was up 8 percent from a year ago. Overall asset quality remains strong, although we saw higher provision expense this quarter. I am pleased with the momentum in our business as we enter the final quarter of the year.
"We remain on track to close our pending transaction with CIBC, announced in June, by the end of the first quarter 2017 and remain eager for the opportunities this proposed merger presents for both PrivateBancorp and CIBC," Richman continued.
Third Quarter 2016 Highlights
-- During the quarter, total loans grew to $14.7 billion, up $1.6 billion
from a year ago and $618.8 million from June 30, 2016, driven primarily
by activity in commercial and industrial loans.
-- Total deposits were $15.5 billion, increasing $1.6 billion from a year
ago and $931.5 million from June 30, 2016. Noninterest-bearing demand
deposits grew 19 percent from a year ago, representing 31 percent of
total deposits at September 30, 2016.
-- Net interest margin was 3.18 percent, compared to 3.23 percent for the
third quarter 2015 and 3.28 percent for the second quarter 2016. A lower
level of loan fees primarily drove the decline in net interest margin on
a sequential basis.
-- Growth in earning assets continued to benefit operating profit, which
increased 19 percent from the third quarter 2015 and 7 percent from the
second quarter 2016. On a sequential basis, operating profit also
benefited from lower professional services expense, largely related to
$6.3 million of transaction-related costs reflected in the results for
the second quarter 2016.
-- The provision for loan and covered loan losses was $15.7 million for the
third quarter 2016, reflecting loan growth and some credit migration,
compared to $4.2 million for the third quarter 2015 and $5.6 million for
the second quarter 2016.
-- Return on average assets was 1.04 percent and return on average common
equity was 10.4 percent for the third quarter 2016.
Operating Performance
Net interest income grew to $145.5 million in the third quarter 2016, increasing 11 percent from the third quarter 2015 and 2 percent from the second quarter 2016, primarily driven by growth in average loans of 12 percent compared to third quarter 2015 and 4 percent compared to the second quarter 2016.
Net interest margin was 3.18 percent in the third quarter 2016, declining 5 basis points from a year ago and 10 basis points from the second quarter 2016, primarily related to lower loan yields and, to a lesser extent, security yields. Loan yields decreased 9 basis points compared to the second quarter 2016, largely related to lower loan fees on a comparative basis. Second quarter results included an elevated fee impact from payoffs and interest recoveries on previous nonaccrual loans. The level of loan fees tends to be uneven quarter-to-quarter, dependent on when loans pays off during their term as well as whether early termination fees exist. Loan yields also reflected a continued upwards move in LIBOR over the last two quarters, benefiting loan yields for the third quarter by 3 basis points. Excluding the contribution from loan fees, hedging, and movement in LIBOR, loan yields were stable in the current environment. Securities yields declined 9 basis points on a sequential basis, as the low rate environment has accelerated prepayment speeds and reduced yields on securities purchased during the quarter. A higher Fed funds effective rate contributed to a slight rise in deposit costs on a sequential basis.
Noninterest income was $37.6 million in the third quarter 2016, increasing $6.8 million from the third quarter 2015 and $484,000 from the second quarter 2016. Other income for the third quarter 2016 reflected a $1.3 million gain on sale of a loan. Treasury management fees were $8.6 million in the third quarter 2016, up 8 percent from the third quarter 2015 and 4 percent from the second quarter 2016, primarily reflecting the onboarding of new commercial clients. Mortgage banking revenue increased $1.7 million from the third quarter 2015 and $453,000 on a sequential basis, reflecting a higher volume of loans sold.
Syndication fees of $4.7 million for the third quarter 2016 increased $357,000 from the third quarter 2015 and declined $943,000 from the second quarter 2016, reflecting a somewhat lower volume of deals compared to the sequential quarter. Capital markets revenue for the third quarter 2016 reflected a positive credit valuation adjustment (CVA) of $910,000, compared to a negative CVA of $1.2 million for the third quarter 2015 and $1.0 million for the second quarter 2016. Excluding the CVA impact for all periods, capital markets revenue was $4.5 million in the third quarter 2016, compared to $4.3 million for the third quarter 2015 and $6.9 million in the second quarter 2016. The sequential decline reflected moderated interest rate derivative activity compared to the first half of 2016. Interest rates derivatives activity is significantly influenced by clients' views on the extent and timing of future interest rate movements. Foreign exchange revenue for the third quarter 2016 was comparable to the year ago quarter and on a sequential basis.
Asset management revenue was $5.6 million in the third quarter 2016, increasing 25 percent from the third quarter 2015 and up slightly from the second quarter 2016. Assets under management and administration were $10.0 billion as of September 30, 2016, compared to $7.2 billion a year ago and $10.7 billion at June 30, 2016. Managed assets grew $178.2 million, or 4 percent, on a sequential basis. Custody assets declined by $818.7 million, largely reflecting a continuation of expected outflows from a corporate trust added during the first quarter 2016. It is anticipated that this account will be reduced by approximately $500 million by the end of the year as funds are disbursed or redeployed.
Expenses
Noninterest expense for the third quarter 2016 increased $6.7 million from the third quarter 2015 and declined $2.3 million from the second 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.
Other expenses includes the provision for unfunded commitments, which was $1.9 million for the third quarter 2016, compared to $2.0 million for the third quarter 2015 and $1.4 million for the second quarter 2016. The increase in the provision on a sequential basis primarily reflected growth in unfunded commitments, as well as some credit migration related to unfunded commercial commitments.
The efficiency ratio was 49.9 percent for the third quarter 2016, compared to 52.2 percent for the third quarter 2015 and 52.2 percent for the second quarter 2016.
Credit Quality
The allowance for loan losses was $180.3 million, or 1.23 percent of total loans, at September 30, 2016, compared to $168.6 million, or 1.20 percent of total loans, at June 30, 2016. The provision for loan losses was $15.9 million for the third quarter 2016, increasing from $4.2 million for the third quarter 2015 and $5.6 million from the second quarter 2016. While asset quality remained strong, the provision was higher following several quarters of unusually low credit costs. The increase in the general reserve reflected strong loan growth and some level of credit migration. Higher nonperforming loan levels at September 30, 2016 reflected irregularities with a single lending relationship, which increased specific reserves by approximately $5 million. 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. Charge-offs were elevated on a comparative basis largely related to a single relationship that was identified during the quarter. Annualized net charge-offs to average loans were 0.12 percent for the third quarter 2016, compared to 0.07 percent for the second quarter 2016 and annualized net recoveries to average loans of 0.05 percent for the third quarter 2015.
Nonperforming assets were 0.52 percent of total assets at September 30, 2016, compared to 0.44 percent at June 30, 2016. At September 30, 2016, nonperforming loans were $87.4 million, increasing $21.9 million from June 30, 2016. OREO decreased $2.5 million from June 30, 2016 to $12.0 million at September 30, 2016.
Balance Sheet
Total assets were $19.1 billion at September 30, 2016, compared to $16.9 billion at September 30, 2015, and $18.2 billion at June 30, 2016. Total loans of $14.7 billion increased 12 percent from September 30, 2015, and 4 percent from June 30, 2016. Loan growth for the third quarter 2016 reflected loans to new clients of $456.4 million, payoffs lower than the five quarter average, and higher draws on revolving loans. At September 30, 2016, commercial loans represented 65 percent of total loans compared to 64 percent at June 30, 2016, and commercial real estate and construction loans represented 29 percent of total loans, compared to 30 percent of total loans at June 30, 2016.
Total liabilities were $17.2 billion at September 30, 2016, compared to $15.2 billion at September 30, 2015, and $16.3 billion at June 30, 2016. Total deposits were $15.5 billion at September 30, 2016, increasing 11 percent from September 30, 2015, and 6 percent from June 30, 2016. Deposit growth included an increase in noninterest-bearing demand deposits of $788.7 million from a year ago and $345.6 million from June 30, 2016. Noninterest-bearing demand deposits represented 31 percent of total deposits at September 30, 2016, compared to 29 percent a year ago and consistent with June 30, 2016. At September 30, 2016, the loan-to-deposit ratio was 95 percent, compared to 94 percent as of September 30, 2015, and 96 percent as of June 30, 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 September 30, 2016, the total risk-based capital ratio was 12.41 percent, the Tier 1 risk-based capital ratio was 10.64 percent, and the leverage ratio was 10.43 percent. The common equity Tier 1 ratio was 9.71 percent and the tangible common equity ratio was 9.40 percent at the end of the third quarter 2016.
No Quarterly Conference Call
In light of PrivateBancorp's announcement regarding its pending transaction with CIBC, PrivateBancorp does not intend to conduct an earnings conference call to discuss third 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 September 30, 2016, the Company had 34 offices in 12 states and $19.1 billion in assets. The Company's website is www.theprivatebank.com. On June 29, 2016, PrivateBancorp announced plans to merge with CIBC, a leading Canadian bank. The transaction is expected to close by the end of the first quarter 2017, pending regulatory and stockholder approval and other customary closing conditions.
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 June 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)
(Unaudited)
Three Months Ended Nine Months Ended
September 30, September 30,
------------- -------------
2016 2015 2016 2015
---- ---- ---- ----
Interest Income
Loans, including fees $148,759 $132,106 $432,990 $380,455
Federal funds sold and
interest-bearing deposits
in banks 380 168 1,055 674
Securities:
Taxable 15,283 13,599 45,651 40,696
Exempt from Federal income
taxes 2,322 2,177 6,951 5,964
Other interest income 139 69 459 180
--- --- --- ---
Total interest income 166,883 148,119 487,106 427,969
------- ------- ------- -------
Interest Expense
Deposits 15,238 11,838 42,274 34,742
Short-term borrowings 1,070 24 2,295 455
Long-term debt 5,065 5,048 15,492 14,948
----- ----- ------ ------
Total interest expense 21,373 16,910 60,061 50,145
------ ------ ------ ------
Net interest income 145,510 131,209 427,045 377,824
Provision for loan and
covered loan losses 15,691 4,197 27,662 11,959
------ ----- ------ ------
Net interest income after
provision for loan and
covered loan losses 129,819 127,012 399,383 365,865
------- ------- ------- -------
Non-interest Income
Asset management 5,590 4,462 15,854 13,566
Mortgage banking 5,060 3,340 12,636 11,267
Capital markets products 5,448 3,098 16,499 12,189
Treasury management 8,617 8,010 25,093 22,758
Loan, letter of credit and
commitment fees 5,293 5,670 16,031 15,690
Syndication fees 4,721 4,364 15,819 12,361
Deposit service charges and
fees and other income 2,885 1,585 5,303 8,740
Net securities gains - 260 1,111 793
--- --- ----- ---
Total non-interest income 37,614 30,789 108,346 97,364
------ ------ ------- ------
Non-interest Expense
Salaries and employee
benefits 55,889 50,019 169,554 152,400
Net occupancy and equipment
expense 7,099 7,098 21,326 21,087
Technology and related
costs 6,282 4,665 17,062 13,540
Marketing 4,587 3,682 12,916 11,926
Professional services 2,865 3,679 15,349 8,574
Outsourced servicing costs 1,379 1,786 5,271 5,500
Net foreclosed property
expenses 965 1,080 1,891 2,993
Postage, telephone, and
delivery 818 857 2,603 2,618
Insurance 3,931 3,667 11,730 10,328
Loan and collection expense 1,972 2,324 5,521 6,802
Other expenses 6,133 6,318 13,406 14,449
----- ----- ------ ------
Total non-interest expense 91,920 85,175 276,629 250,217
------ ------ ------- -------
Income before income taxes 75,513 72,626 231,100 213,012
Income tax provision 26,621 27,358 82,291 79,838
------ ------ ------ ------
Net income available to
common stockholders $48,892 $45,268 $148,809 $133,174
======= ======= ======== ========
Per Common Share Data
Basic earnings per share $0.61 $0.58 $1.87 $1.70
Diluted earnings per share $0.60 $0.57 $1.84 $1.67
Cash dividends declared $0.01 $0.01 $0.03 $0.03
Weighted-average common
shares outstanding 79,007 78,144 78,803 77,834
Weighted-average diluted
common shares outstanding 80,673 79,401 80,283 79,027
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)
3Q16 2Q16 1Q16 4Q15 3Q15
---- ---- ---- ---- ----
Interest Income
Loans, including fees $148,759 $144,164 $140,067 $137,006 $132,106
Federal funds sold and
interest-bearing
deposits in banks 380 335 340 229 168
Securities:
Taxable 15,283 15,158 15,210 14,587 13,599
Exempt from Federal
income taxes 2,322 2,296 2,333 2,306 2,177
Other interest income 139 170 150 115 69
--- --- --- --- ---
Total interest income 166,883 162,123 158,100 154,243 148,119
------- ------- ------- ------- -------
Interest Expense
Deposits 15,238 13,895 13,141 12,364 11,838
Short-term borrowings 1,070 995 230 201 24
Long-term debt 5,065 5,216 5,211 5,087 5,048
----- ----- ----- ----- -----
Total interest expense 21,373 20,106 18,582 17,652 16,910
------ ------ ------ ------ ------
Net interest income 145,510 142,017 139,518 136,591 131,209
Provision for loan and
covered loan losses 15,691 5,569 6,402 2,831 4,197
------ ----- ----- ----- -----
Net interest income
after provision for
loan and covered loan
losses 129,819 136,448 133,116 133,760 127,012
------- ------- ------- ------- -------
Non-interest Income
Asset management 5,590 5,539 4,725 4,392 4,462
Mortgage banking 5,060 4,607 2,969 2,812 3,340
Capital markets products 5,448 5,852 5,199 6,341 3,098
Treasury management 8,617 8,290 8,186 7,883 8,010
Loan, letter of credit
and commitment fees 5,293 5,538 5,200 4,958 5,670
Syndication fees 4,721 5,664 5,434 4,844 4,364
Deposit service charges
and fees and other
income 2,885 1,060 1,358 1,389 1,585
Net securities gains - 580 531 29 260
--- --- --- --- ---
Total non-interest
income 37,614 37,130 33,602 32,648 30,789
------ ------ ------ ------ ------
Non-interest Expense
Salaries and employee
benefits 55,889 55,326 58,339 52,619 50,019
Net occupancy and
equipment expense 7,099 7,012 7,215 7,127 7,098
Technology and related
costs 6,282 5,487 5,293 5,221 4,665
Marketing 4,587 3,925 4,404 4,196 3,682
Professional services 2,865 9,490 2,994 2,746 3,679
Outsourced servicing
costs 1,379 2,052 1,840 1,994 1,786
Net foreclosed property
expenses 965 360 566 1,217 1,080
Postage, telephone, and
delivery 818 945 840 964 857
Insurance 3,931 3,979 3,820 3,644 3,667
Loan and collection
expense 1,972 2,017 1,532 1,754 2,324
Other expenses 6,133 3,623 3,650 1,538 6,318
----- ----- ----- ----- -----
Total non-interest
expense 91,920 94,216 90,493 83,020 85,175
------ ------ ------ ------ ------
Income before income
taxes 75,513 79,362 76,225 83,388 72,626
Income tax provision 26,621 28,997 26,673 31,251 27,358
------ ------ ------ ------ ------
Net income available to
common stockholders $48,892 $50,365 $49,552 $52,137 $45,268
======= ======= ======= ======= =======
Per Common Share Data
Basic earnings per share $0.61 $0.63 $0.63 $0.66 $0.58
Diluted earnings per
share $0.60 $0.62 $0.62 $0.65 $0.57
Cash dividends declared $0.01 $0.01 $0.01 $0.01 $0.01
Weighted-average common
shares outstanding 79,007 78,849 78,550 78,366 78,144
Weighted-average
diluted common shares
outstanding 80,673 80,317 79,856 79,738 79,401
Consolidated Balance Sheets
(Dollars in thousands)
9/30/16 6/30/16 3/31/16 12/31/15 9/30/15
------- ------- ------- -------- -------
Unaudited Unaudited Unaudited Audited Unaudited
Assets
Cash and due from
banks $166,607 $155,292 $133,001 $145,147 $145,477
Federal funds sold and
interest-bearing
deposits in banks 245,193 230,036 337,465 238,511 231,600
Loans held-for-sale 75,438 61,360 64,029 108,798 76,225
Securities available-
for-sale, at fair
value 1,961,099 1,864,636 1,831,848 1,765,366 1,703,926
Securities held-to-
maturity, at
amortized cost 1,633,235 1,435,334 1,456,760 1,355,283 1,293,433
Federal Home Loan Bank
("FHLB") stock 30,213 21,113 38,113 26,613 30,740
Loans - excluding
covered assets, net
of unearned fees 14,654,570 14,035,808 13,457,665 13,266,475 13,079,314
Allowance for loan
losses (180,268) (168,615) (165,356) (160,736) (162,868)
-------- -------- -------- -------- --------
Loans, net of
allowance for loan
losses and unearned
fees 14,474,302 13,867,193 13,292,309 13,105,739 12,916,446
Covered assets 23,889 25,151 25,769 26,954 28,559
Allowance for covered
loan losses (4,879) (5,525) (5,526) (5,712) (6,337)
------ ------ ------ ------ ------
Covered assets, net of
allowance for covered
loan losses 19,010 19,626 20,243 21,242 22,222
Other real estate
owned, excluding
covered assets 12,035 14,532 14,806 7,273 12,760
Premises, furniture,
and equipment, net 44,760 43,394 41,717 42,405 38,265
Accrued interest
receivable 48,512 47,209 47,349 45,482 43,064
Investment in bank
owned life insurance 57,750 57,380 57,011 56,653 56,292
Goodwill 94,041 94,041 94,041 94,041 94,041
Other intangible
assets 1,809 2,349 2,890 3,430 4,008
Derivative assets 62,094 80,995 66,406 40,615 59,978
Other assets 179,462 174,701 169,384 196,250 159,531
------- ------- ------- ------- -------
Total assets $19,105,560 $18,169,191 $17,667,372 $17,252,848 $16,888,008
=========== =========== =========== =========== ===========
Liabilities
Deposits:
Noninterest-bearing $4,857,470 $4,511,893 $4,338,177 $4,355,700 $4,068,816
Interest-bearing 10,631,384 10,045,501 10,126,692 9,989,892 9,828,923
Total deposits 15,488,854 14,557,394 14,464,869 14,345,592 13,897,739
Short-term borrowings 1,233,318 1,287,934 602,365 372,467 514,121
Long-term debt 338,286 338,262 688,238 688,215 688,191
Accrued interest
payable 7,953 7,967 6,630 7,080 6,509
Derivative liabilities 19,236 27,940 22,498 18,229 21,967
Other liabilities 135,559 118,544 114,781 122,314 111,482
------- ------- ------- ------- -------
Total liabilities 17,223,206 16,338,041 15,899,381 15,553,897 15,240,009
---------- ---------- ---------- ---------- ----------
Equity
Common stock 79,101 78,918 78,894 78,439 78,197
Treasury stock - - (4,389) (103) (63)
Additional paid-in
capital 1,091,275 1,082,173 1,078,470 1,071,674 1,060,274
Retained earnings 678,059 629,976 580,418 531,682 480,342
Accumulated other
comprehensive income,
net of tax 33,919 40,083 34,598 17,259 29,249
------ ------ ------ ------ ------
Total equity 1,882,354 1,831,150 1,767,991 1,698,951 1,647,999
--------- --------- --------- --------- ---------
Total liabilities and
equity $19,105,560 $18,169,191 $17,667,372 $17,252,848 $16,888,008
=========== =========== =========== =========== ===========
Selected Financial Data
(Amounts in thousands, except per share data)
(Unaudited)
3Q16 2Q16 1Q16 4Q15 3Q15
---- ---- ---- ---- ----
Selected Statement of Income Data:
Net interest income $145,510 $142,017 $139,518 $136,591 $131,209
Net revenue (1)(2) $184,331 $180,341 $174,337 $170,445 $163,134
Operating profit
(1)(2) $92,411 $86,125 $83,844 $87,425 $77,959
Provision for loan
and covered loan
losses $15,691 $5,569 $6,402 $2,831 $4,197
Income before income
taxes $75,513 $79,362 $76,225 $83,388 $72,626
Net income available
to common
stockholders $48,892 $50,365 $49,552 $52,137 $45,268
Per Common Share Data:
Basic earnings per
share $0.61 $0.63 $0.63 $0.66 $0.58
Diluted earnings per
share $0.60 $0.62 $0.62 $0.65 $0.57
Dividends declared $0.01 $0.01 $0.01 $0.01 $0.01
Book value (period
end) (1) $23.64 $23.04 $22.29 $21.48 $20.90
Tangible book value
(period end) (1)(2) $22.43 $21.83 $21.07 $20.25 $19.65
Market value (period
end) $45.92 $44.03 $38.60 $41.02 $38.33
Book value multiple
(period end) 1.94 x 1.91 x 1.73 x 1.91 x 1.83 x
Share Data:
Weighted-average
common shares
outstanding 79,007 78,849 78,550 78,366 78,144
Weighted-average
diluted common
shares outstanding 80,673 80,317 79,856 79,738 79,401
Common shares issued
(period end) 79,640 79,464 79,443 79,099 78,865
Common shares
outstanding (period
end) 79,640 79,464 79,322 79,097 78,863
Performance Ratio:
Return on average
common equity 10.40% 11.20% 11.40% 12.29% 11.05%
Return on average
assets 1.04% 1.14% 1.15% 1.21% 1.09%
Return on average
tangible common
equity (1)(2) 11.04% 11.91% 12.16% 13.13% 11.85%
Net interest margin
(1)(2) 3.18% 3.28% 3.30% 3.25% 3.23%
Fee revenue as a
percent of total
revenue (1) 20.54% 20.47% 19.16% 19.28% 18.88%
Non-interest income
to average assets 0.80% 0.84% 0.78% 0.75% 0.74%
Non-interest expense
to average assets 1.96% 2.12% 2.09% 1.92% 2.04%
Net overhead ratio
(1) 1.16% 1.29% 1.32% 1.16% 1.30%
Efficiency ratio
(1)(2) 49.87% 52.24% 51.91% 48.71% 52.21%
Balance Sheet Ratios:
Loans to deposits
(period end) (3) 94.61% 96.42% 93.04% 92.48% 94.11%
Average interest-
earning assets to
average interest-
bearing liabilities 153.16% 151.10% 153.64% 152.94% 149.67%
Capital Ratios (period end):
Total risk-based
capital (1) 12.41% 12.42% 12.56% 12.37% 12.28%
Tier 1 risk-based
capital (1) 10.64% 10.66% 10.76% 10.56% 10.39%
Tier 1 leverage ratio
(1) 10.43% 10.56% 10.50% 10.35% 10.35%
Common equity Tier 1
(1) 9.71% 9.70% 9.76% 9.54% 9.35%
Tangible common
equity to tangible
assets (1)(2) 9.40% 9.60% 9.51% 9.34% 9.23%
Total equity to total
assets 9.85% 10.08% 10.01% 9.85% 9.75%
(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)
3Q16 2Q16 1Q16 4Q15 3Q15
---- ---- ---- ---- ----
Additional Selected Information:
Decrease (increase)
credit valuation
adjustment on
capital markets
derivatives (1) $910 $(1,033) $(1,904) $1,043 $(1,227)
Salaries and employee benefits:
Salaries and wages $30,923 $30,335 $28,963 $28,113 $28,143
Share-based costs 4,728 4,618 6,357 4,871 4,509
Incentive
compensation and
commissions 15,604 15,882 13,307 14,676 13,308
Payroll taxes,
insurance and
retirement costs 4,634 4,491 9,712 4,959 4,059
Total salaries and
employee benefits $55,889 $55,326 $58,339 $52,619 $50,019
Loan and collection expense:
Loan origination and
servicing expense $1,716 $1,666 $1,297 $1,445 $1,522
Loan remediation
expense 256 351 235 309 802
--- --- --- --- ---
Total loan and
collection expense $1,972 $2,017 $1,532 $1,754 $2,324
Transaction related
expenses $106 $6,270 $ - $ - $ -
Assets under management and
administration (AUMA):
Personal managed $2,068,772 $2,017,797 $1,867,572 $1,872,737 $1,839,829
Corporate and
institutional
managed 2,653,264 2,526,043 1,592,394 1,787,187 1,800,522
--------- --------- --------- --------- ---------
Total managed assets 4,722,036 4,543,840 3,459,966 3,659,924 3,640,351
Custody assets 5,326,757 6,145,445 6,161,827 3,631,149 3,519,364
(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-third-quarter-2016-earnings-300348255.html
SOURCE PrivateBancorp, Inc.
