PRIVATEBANCORP INC 
By CHICAGO, Jan. 16, 2014 /PRNewswire/ -- PrivateBancorp, Inc. (NASDAQ: PVTB) today reported net income available to common shareholders of $33.7 million or $0.43 per diluted share for the fourth quarter 2013, compared to $20.0 million or $0.26 per diluted share for the fourth quarter 2012 and $33.1 million or $0.42 per diluted share for the third quarter 2013. For the year ended December 31, 2013, the Company had net income available to common shareholders of $122.9 million or $1.57 per diluted share, compared to $64.5 million or $0.88 per diluted share for the year ended December 31, 2012.
"We finished the year with another strong quarter for PrivateBancorp," said Larry D. Richman, President and Chief Executive Officer, PrivateBancorp, Inc. "Compared to the prior year, earnings per share increased 65 percent for the quarter and 78 percent for the year. We grew net loans $235 million and client deposits $321 million in the quarter. This growth, along with further reductions of credit costs, helped to drive net income to $34 million in the period.
"I am proud of what the team accomplished in 2013 and how that positions us for the future," Richman continued. "Our 2013 net income nearly doubled and reflects continued client relationship development as well as our success in significantly improving asset quality, which drove credit costs lower for the year. Revenue grew to $538 million for the year despite ongoing pricing pressure in the competitive, low-rate environment. As we look ahead to 2014, our credit problems are largely behind us and we believe we can benefit from a strengthening economic environment. We will focus on consistent execution of our strategy, adding new commercial banking relationships and expanding those we have through cross-sell of our commercial, wealth management and personal banking services."
Fourth Quarter 2013 Highlights
-- Net revenue was $136.0 million, an increase of $1.6 million compared to
third quarter 2013, benefiting from the growth in average loans and
lower cost of funds.
-- Total loans grew to $10.6 billion as of December 31, 2013, up 5 percent
from a year ago and 2 percent from September 30, 2013. The increase in
total loans reflected growth in commercial and industrial loans and
commercial real estate and construction loans compared to the third
quarter 2013.
-- Total deposits were $12.0 billion as of December 31, 2013, an increase
of $181.1 million from September 30, 2013, with noninterest bearing
demand deposit balances representing 26 percent of total deposits.
-- Net interest margin was 3.18 percent, up 2 basis points from a year ago
and stable compared to third quarter 2013, benefiting in part from the
repayment of $120 million of subordinated debt during the quarter.
-- Nonperforming assets to total assets declined to 0.87 percent at
December 31, 2013, compared to 1.57 percent one year ago and 1.07
percent at September 30, 2013. Nonperforming loans were $94.2 million as
of December 31, 2013, a decline of 32 percent from December 31, 2012,
and 17 percent from September 30, 2013. In comparison to the third
quarter 2013, a reduction in net charge-offs of $3.2 million contributed
to the $2.9 million decline in provision for loan losses.
-- Return on average common equity was 10.3 percent and return on average
assets was 0.96 percent for the fourth quarter 2013.
Operating Performance
Net revenue was $136.0 million in the fourth quarter 2013, an increase of 1 percent compared to the fourth quarter 2012 and the third quarter 2013. The increase in net revenue was attributable to growth in net interest income from higher average loan balances and lower cost of funds. For the full year 2013, net revenue was $538.3 million, up 1 percent compared to 2012, reflecting both increased net interest income from higher average loan balances and noninterest income.
Operating profit of $60.2 million in the fourth quarter 2013 was up 12 percent compared to the fourth quarter 2012 and down 5 percent compared to the third quarter 2013. The reduction in operating profit compared to the third quarter 2013 was a result of increased noninterest expenses primarily related to increased employee expense, and an increase in the provision for unfunded commitments. For the full year, operating profit was $235.0 million, up 14 percent compared to 2012, and benefited primarily from lower costs associated with net foreclosed property expenses and a reduction of share-based compensation costs.
Net interest income was $108.5 million in the fourth quarter 2013, an increase of 3 percent compared to the fourth quarter 2012 and 2 percent compared to the third quarter 2013. The growth in net interest income over the prior quarter benefited from a 2 percent increase in average loan balances and the repayment of $120 million of long-term subordinated debt. For the full year 2013, net interest income was $421.1 million, compared to net interest income of $419.9 million for full year 2012. Net interest margin was 3.18 percent in the fourth quarter 2013, compared to 3.16 percent in the fourth quarter 2012 and 3.18 percent in the third quarter 2013. While one-month LIBOR declined in the fourth quarter, net interest margin benefited from the repayment of subordinated debt and higher yields on earning assets compared to the prior quarter. The lending environment remains highly competitive and continues to put downward pressure on loan pricing.
Noninterest income was $26.7 million in the fourth quarter 2013, a decline of $2.7 million compared to the fourth quarter 2012 and $1.0 million compared to the third quarter 2013. Lower mortgage financing volume reduced noninterest income by $2.3 million compared to the fourth quarter 2012 and $1.1 million compared to the third quarter 2013. Syndication fees were comparable to the fourth quarter 2012, though declined by $2.2 million compared to the third quarter 2013. The level of syndication activity may vary from quarter to quarter with syndication fees for third quarter 2013 a record amount.
Trust and investments income was $4.6 million, an increase of 9 percent from the fourth quarter 2012 and 1 percent from the third quarter 2013. Focused marketing efforts to add trust and investment clients in 2013 contributed to the 10 percent increase of assets under management and administration compared to the prior year. Capital markets revenue of $5.7 million declined from $6.7 million in the fourth quarter 2012 and increased from $3.9 million in the third quarter 2013. Capital markets revenue excluding the impact of CVA was $5.1 million in the quarter, a decrease of $789,000 from the fourth quarter 2012 and an increase of $659,000 from the previous quarter. Fourth quarter 2013 capital markets revenue included an increase in foreign exchange activity compared to the third quarter. Treasury management fees of $6.3 million grew 13 percent from the fourth quarter 2012 and 2 percent from the previous quarter, benefiting in part from new credit relationships.
For the full year 2013, noninterest income increased 3 percent to $114.0 million compared to $111.0 million for the full year 2012. In comparison to the prior year, syndication fees increased 48 percent, benefiting from the Company's loan origination capabilities combined with a broader product offering and strong market demand. Capital markets products revenue declined as client demand for interest rate management products shifted to lower revenue products and mortgage banking revenue decreased due to lower volumes primarily as a result of increasing mortgage rates.
Expenses
Noninterest expense was $75.8 million in the fourth quarter 2013, a decrease of 7 percent from the fourth quarter 2012 and an increase of 6 percent from third quarter 2013. The reduction of noninterest expense compared to the fourth quarter 2012 reflected a decline of $6.0 million in expenses associated primarily with reduced net foreclosed property expense and share-based compensation costs offset by increased provision for unfunded commitments. The efficiency rate was 55.7 percent in the fourth quarter, compared to 60.2 percent in fourth quarter 2012 and 53.0 percent in third quarter 2013.
Compared to the third quarter 2013, the increase of noninterest expense was comprised primarily of $1.2 million of additional variable performance-based compensation and a $1.0 million increase in provision for unfunded commitments, offset by a $796,000 reduction in net foreclosed property expense. In the third quarter 2013, other expenses benefited from a $1.3 million reduction in the unfunded commitment reserve that was associated with a single credit.
Noninterest expense for the full year 2013 was $303.3 million, a decline of 7 percent from $327.1 million for 2012 with reductions in net foreclosed property expense, certain share-based compensation, insurance and loan and collection costs.
Credit Quality
In 2013, the Company significantly improved credit quality and reduced credit costs. Nonperforming assets were $122.8 million at December 31, 2013, a decline of 44 percent from December 31, 2012, and 17 percent from September 30, 2013, with the reduction attributable to continued sales of other real estate owned ("OREO") and resolution of nonperforming loans. At year end, OREO was $28.5 million, a reduction of $53.3 million from December 31, 2012, and $6.8 million from September 30, 2013, as a result of ongoing dispositions of foreclosed property. Nonperforming loans were $94.2 million, compared to $138.8 million at December 31, 2012, and $113.3 million at September 30, 2013. Nonperforming assets to total assets were 0.87 percent at December 31, 2013, compared to 1.57 percent at December 31, 2012, and 1.07 percent at September 30, 2013.
As of December 31, 2013, the allowance for loan losses as a percent of total loans was 1.34 percent, down from 1.59 percent at December 31, 2012, and 1.40 percent at September 30, 2013. Net charge-offs were $7.3 million for the fourth quarter 2013, a decline of 59 percent compared to the fourth quarter 2012 and 30 percent compared to the third quarter 2013, and benefited from a higher level of loan recoveries. The provision for loan losses was $4.9 million for the fourth quarter 2013 compared to $12.6 million for the fourth quarter 2012 and $7.8 million for third quarter 2013. On a full year basis, provision for loan loss expense was $31.2 million compared to $70.9 million for the full year 2012, reflecting lower net charge-offs and a decline in reserve requirements for problem loans.
Credit quality results exclude covered assets acquired through an FDIC-assisted transaction that are subject to a loss sharing agreement.
Balance Sheet
Total assets were $14.1 billion at December 31, 2013, flat compared to $14.1 billion at December 31, 2012, and up from $13.9 billion at September 30, 2013. Total loans of $10.6 billion grew $504.0 million or 5 percent from December 31, 2012 and $234.6 million or 2 percent from the previous quarter end, benefiting largely from net loan growth of commercial and industrial loans. In comparison to September 30, 2013, commercial real estate and construction loans increased as well, despite continued payoffs of loans, many of which were replaced with permanent financing. At December 31, 2013, total commercial loans comprised 67 percent of total loans, up from 64 percent a year ago, and total commercial real estate and construction loans comprised 27 percent of total loans, down from 28 percent at December 31, 2012.
Total deposits were $12.0 billion at December 31, 2013, a decline of 1 percent as of December 31, 2012, and an increase of 2 percent compared to September 30, 2013. At December 31, 2013, the loan to deposit ratio was 88.6 percent. Noninterest bearing demand deposits were $3.2 billion and comprised 26 percent of total deposits at December 31, 2013. On October 24, 2013, the $120.0 million balance of a subordinated debt facility with a weighted average rate of 3.8 percent was repaid in full and replaced with lower-cost liquidity.
The Company's investment securities portfolio was $2.5 billion at December 31, 2013, up 9 percent from December 31, 2012, and a relatively flat compared to September 30, 2013. The securities portfolio is primarily composed of U.S. government agency backed mortgage securities, U.S. Treasuries, agency backed collateralized mortgage obligations, and investment grade municipal bonds.
Capital
As of December 31, 2013, the total risk-based capital ratio was 13.30 percent, the Tier 1 risk-based capital ratio was 11.08 percent, and the leverage ratio was 10.37 percent. The Tier 1 common capital ratio was 9.19 percent (without giving effect to the final Basel III capital rules adopted and issued by the Federal Reserve Board in July 2013) and tangible common equity ratio was 8.57 percent at the end of the fourth quarter 2013.
Quarterly Conference Call and Webcast Presentation
PrivateBancorp will host a conference call on Thursday, January 16, 2014, at 10 a.m. CT. The call may be accessed by telephone at (888) 782-9127 (U.S. and Canada) or (706) 634-5643 (International) and entering passcode #25250239. A live webcast of the call can be accessed on the Company website at: investor.theprivatebank.com by visiting the Investor Relations tab under the About Us section. A rebroadcast will be available beginning approximately two hours after the call until midnight on January 30, 2014, by calling (855) 859-2056 (U.S. and Canada) or (404) 537-3406 (International) and entering passcode #25250239.
About PrivateBancorp, Inc.
PrivateBancorp, Inc., through its subsidiaries, 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 we serve. As of December 31, 2013, the Company had 33 offices in 10 states and $14.1 billion in assets. The Company 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:
-- continued uncertainty regarding U.S. and global economic outlook that
may impact market conditions and credit quality or prolong weakness in
demand for loans or other banking products and services;
-- unanticipated developments in pending or prospective loan transactions
or greater than expected paydowns or payoffs of existing loans;
-- unanticipated changes in interest rates;
-- competitive trends in our markets;
-- unforeseen credit quality problems that could result in charge-offs
greater than we have anticipated in our allowance for loan losses;
-- slower than anticipated dispositions of other real estate owned or
declines in real estate values which may negatively impact net
foreclosed property expense;
-- lack of sufficient or cost-effective sources of liquidity or funding as
and when needed;
-- loss of key personnel or an inability to recruit and retain appropriate
talent;
-- potential impact of recently adopted capital rules;
-- greater than anticipated impact on costs, revenues and offered products
and services associated with the implementation of other regulatory
changes;
-- changes in monetary or fiscal policies of the U.S. Government and the
potential impact from current debates related to the federal debt
ceiling; or
-- failures or disruptions to our data processing or other information or
operational systems, including the potential impact of disruptions or
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 Form 10-K for the year ended December 31, 2012 as well as those set forth in our subsequent periodic 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 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 Company's website at www.theprivatebank.com.
Consolidated Income Statements
(Amounts in thousands, except per share data)
Quarter Ended Year Ended
December 31,
December 31,
------------
2013 2012 2013 2012
---- ---- ---- ----
Unaudited Unaudited Unaudited Audited
Interest Income
Loans,
including fees $110,723 $108,172 $433,829 $423,211
Federal funds
sold and
interest-
bearing
deposits in
banks 221 452 652 965
Securities:
Taxable 13,038 12,938 51,310 56,826
Exempt from
Federal income
taxes 1,604 1,462 6,200 5,487
Other interest
income 34 168 247 547
--- --- --- ---
Total interest
income 125,620 123,192 492,238 487,036
------- ------- ------- -------
Interest Expense
Interest-
bearing demand
deposits 1,021 985 4,202 3,378
Savings
deposits and
money market
accounts 4,169 4,531 16,350 17,604
Brokered and
time deposits 5,062 5,561 20,161 21,832
Short-term and
secured
borrowings 161 77 850 443
Long-term debt 6,751 7,235 29,612 23,846
----- ----- ------ ------
Total interest
expense 17,164 18,389 71,175 67,103
------ ------ ------ ------
Net interest
income 108,456 104,803 421,063 419,933
Provision for
loan and
covered loan
losses 4,476 13,177 31,796 71,425
----- ------ ------ ------
Net interest
income after
provision for
loan and
covered loan
losses 103,980 91,626 389,267 348,508
------- ------ ------- -------
Non-interest Income
Trust and
Investments 4,613 4,232 18,377 17,017
Mortgage
banking 1,858 4,197 12,172 13,460
Capital markets
products 5,720 6,744 20,728 25,958
Treasury
management 6,321 5,606 24,668 21,510
Loan, letter of
credit and
commitment
fees 4,474 4,671 17,217 18,173
Syndication
fees 2,153 2,231 13,447 9,107
Deposit service
charges and
fees and other
income 1,322 1,582 6,207 6,021
Net securities
gains (losses) 279 191 1,174 (205)
--- --- ----- ----
Total non-
interest
income 26,740 29,454 113,990 111,041
------ ------ ------- -------
Non-interest Expense
Salaries and
employee
benefits 42,575 45,253 166,929 174,948
Net occupancy
expense 7,548 7,762 30,027 30,571
Technology and
related costs 3,443 3,249 13,726 13,250
Marketing 3,592 2,448 12,590 10,311
Professional
services 2,393 1,998 8,539 8,353
Outsourced
servicing
costs 1,612 1,814 6,817 7,419
Net foreclosed
property
expenses 3,600 9,571 20,194 38,296
Postage,
telephone, and
delivery 845 909 3,521 3,497
Insurance 2,934 3,290 10,867 15,186
Loan and
collection
expense 2,351 2,227 8,753 11,631
Other expenses 4,934 2,794 21,351 13,670
----- ----- ------ ------
Total non-
interest
expense 75,827 81,315 303,314 327,132
------ ------ ------- -------
Income before
income taxes 54,893 39,765 199,943 132,417
Income tax
provision 21,187 16,682 76,994 54,521
------ ------ ------ ------
Net income 33,706 23,083 122,949 77,896
Preferred stock
dividends and
discount
accretion - 3,043 - 13,368
--- ----- --- ------
Net income
available to
common
stockholders $33,706 $20,040 $122,949 $64,528
======= ======= ======== =======
Per Common Share Data
Basic earnings
per share $0.43 $0.26 $1.58 $0.88
Diluted
earnings per
share $0.43 $0.26 $1.57 $0.88
Cash dividends
declared $0.01 $0.01 $0.04 $0.04
Weighted-
average common
shares
outstanding 76,533 75,035 76,398 71,951
Weighted-
average
diluted common
shares
outstanding 76,967 75,374 76,645 72,174
Note: Certain reclassifications have been made to prior period financial statements to place them on a
basis comparable with the current period financial statements.
Consolidated Income Statements
(Amounts in thousands, except per share data)
(Unaudited)
4Q13 3Q13 2Q13 1Q13 4Q12
---- ---- ---- ---- ----
Interest Income
Loans,
including fees $110,723 $108,912 $107,407 $106,787 $108,172
Federal funds
sold and
interest-
bearing
deposits in
banks 221 111 112 208 452
Securities:
Taxable 13,038 12,931 12,519 12,822 12,938
Exempt from
Federal income
taxes 1,604 1,562 1,532 1,502 1,462
Other interest
income 34 61 62 90 168
--- --- --- --- ---
Total interest
income 125,620 123,577 121,632 121,409 123,192
------- ------- ------- ------- -------
Interest Expense
Interest-
bearing demand
deposits 1,021 1,032 1,034 1,115 985
Savings
deposits and
money market
accounts 4,169 3,895 3,887 4,399 4,531
Brokered and
time deposits 5,062 5,014 4,956 5,129 5,561
Short-term and
secured
borrowings 161 161 410 118 77
Long-term debt 6,751 7,640 7,613 7,608 7,235
----- ----- ----- ----- -----
Total interest
expense 17,164 17,742 17,900 18,369 18,389
------ ------ ------ ------ ------
Net interest
income 108,456 105,835 103,732 103,040 104,803
Provision for
loan and
covered loan
losses 4,476 8,120 8,843 10,357 13,177
----- ----- ----- ------ ------
Net interest
income after
provision for
loan and
covered loan
losses 103,980 97,715 94,889 92,683 91,626
------- ------ ------ ------ ------
Non-interest Income
Trust and
Investments 4,613 4,570 4,800 4,394 4,232
Mortgage
banking 1,858 2,946 3,198 4,170 4,197
Capital markets
products 5,720 3,921 6,048 5,039 6,744
Treasury
management 6,321 6,214 6,209 5,924 5,606
Loan, letter of
credit and
commitment
fees 4,474 4,384 4,282 4,077 4,671
Syndication
fees 2,153 4,322 3,140 3,832 2,231
Deposit service
charges and
fees and other
income 1,322 1,298 1,196 2,391 1,582
Net securities
gains (losses) 279 118 136 641 191
--- --- --- --- ---
Total non-
interest
income 26,740 27,773 29,009 30,468 29,454
------ ------ ------ ------ ------
Non-interest Expense
Salaries and
employee
benefits 42,575 41,360 39,854 43,140 45,253
Net occupancy
expense 7,548 7,558 7,387 7,534 7,762
Technology and
related costs 3,443 3,343 3,476 3,464 3,249
Marketing 3,592 2,986 3,695 2,317 2,448
Professional
services 2,393 2,465 1,782 1,899 1,998
Outsourced
servicing
costs 1,612 1,607 1,964 1,634 1,814
Net foreclosed
property
expenses 3,600 4,396 5,555 6,643 9,571
Postage,
telephone, and
delivery 845 852 981 843 909
Insurance 2,934 2,590 2,804 2,539 3,290
Loan and
collection
expense 2,351 1,345 2,280 2,777 2,227
Other expenses 4,934 2,767 7,477 6,173 2,794
----- ----- ----- ----- -----
Total non-
interest
expense 75,827 71,269 77,255 78,963 81,315
------ ------ ------ ------ ------
Income before
income taxes 54,893 54,219 46,643 44,188 39,765
Income tax
provision 21,187 21,161 17,728 16,918 16,682
------ ------ ------ ------ ------
Net income 33,706 33,058 28,915 27,270 23,083
Preferred stock
dividends and
discount
accretion - - - - 3,043
--- --- --- --- -----
Net income
available to
common
stockholders $33,706 $33,058 $28,915 $27,270 $20,040
======= ======= ======= ======= =======
Per Common Share Data
Basic earnings
per share $0.43 $0.42 $0.37 $0.35 $0.26
Diluted
earnings per
share $0.43 $0.42 $0.37 $0.35 $0.26
Cash dividends
declared $0.01 $0.01 $0.01 $0.01 $0.01
Weighted-
average common
shares
outstanding 76,533 76,494 76,415 76,143 75,035
Weighted-
average
diluted common
shares
outstanding 76,967 76,819 76,581 76,203 75,374
Consolidated Balance Sheets
(Dollars in thousands)
12/31/13 9/30/13 6/30/13 3/31/13 12/31/12
-------- ------- ------- ------- --------
(Unaudited) (Unaudited) (Unaudited) (Unaudited) (Audited)
Assets
Cash and due
from banks $133,518 $247,460 $150,683 $118,583 $234,308
Federal funds
sold and
interest-
bearing
deposits in
banks 306,544 180,608 147,699 203,647 707,143
Loans held-
for-sale 26,816 27,644 34,803 38,091 49,696
Securities
available-
for-sale, at
fair value 1,602,476 1,611,022 1,580,179 1,457,433 1,451,160
Securities
held-to-
maturity, at
amortized cost 921,436 931,342 955,688 959,994 863,727
Federal Home
Loan Bank
("FHLB") stock 30,005 34,063 34,063 34,288 43,387
Loans -
excluding
covered
assets, net of
unearned fees 10,644,021 10,409,443 10,094,636 10,033,803 10,139,982
Allowance for
loan losses (143,109) (145,513) (148,183) (153,992) (161,417)
-------- -------- -------- -------- --------
Loans, net of
allowance for
loan losses
and unearned
fees 10,500,912 10,263,930 9,946,453 9,879,811 9,978,565
Covered assets 112,746 140,083 158,326 176,855 194,216
Allowance for
covered loan
losses (16,511) (21,653) (24,995) (24,089) (24,011)
------- ------- ------- ------- -------
Covered assets,
net of
allowance for
covered loan
losses 96,235 118,430 133,331 152,766 170,205
Other real
estate owned,
excluding
covered assets 28,548 35,310 57,134 73,857 81,880
Premises,
furniture, and
equipment, net 39,704 36,445 37,025 38,373 39,508
Accrued
interest
receivable 37,004 35,758 38,325 39,205 34,832
Investment in
bank owned
life insurance 53,865 53,539 53,216 52,873 52,513
Goodwill 94,041 94,484 94,496 94,509 94,521
Other
intangible
assets 8,892 10,486 11,266 12,047 12,828
Derivative
assets 48,422 57,771 57,361 90,303 99,261
Other assets 157,328 130,848 144,771 126,450 143,981
------- ------- ------- ------- -------
Total assets $14,085,746 $13,869,140 $13,476,493 $13,372,230 $14,057,515
=========== =========== =========== =========== =========
Liabilities
Demand
deposits:
Noninterest-
bearing $3,172,676 $3,106,986 $2,736,868 $2,756,879 $3,690,340
Interest-
bearing 1,470,856 1,183,471 1,234,134 1,390,955 1,057,390
Savings
deposits and
money market
accounts 4,799,561 4,778,057 4,654,930 4,741,864 4,912,820
Brokered time
deposits 1,119,777 1,303,596 1,190,796 983,625 993,455
Time deposits 1,450,771 1,460,446 1,491,604 1,518,980 1,519,629
--------- --------- --------- --------- ---------
Total deposits 12,013,641 11,832,556 11,308,332 11,392,303 12,173,634
Short-term and
secured
borrowings 8,400 131,400 308,700 107,775 5,000
Long-term debt 627,793 499,793 499,793 499,793 499,793
Accrued
interest
payable 6,326 6,042 5,963 6,787 7,141
Derivative
liabilities 48,890 55,933 62,014 84,370 93,276
Other
liabilities 78,792 69,728 58,651 49,137 71,505
------ ------ ------ ------ ------
Total
liabilities 12,783,842 12,595,452 12,243,453 12,140,165 12,850,349
---------- ---------- ---------- ---------- ----------
Equity
Common stock:
Voting 75,240 75,240 75,238 73,144 73,479
Nonvoting 1,585 1,585 1,585 3,536 3,536
Treasury stock (6,415) (7,303) (9,001) (9,631) (24,150)
Additional
paid-in
capital 1,022,023 1,019,143 1,016,615 1,014,443 1,026,438
Retained
earnings 199,627 166,700 134,423 106,288 79,799
Accumulated
other
comprehensive
income, net of
tax 9,844 18,323 14,180 44,285 48,064
----- ------ ------ ------ ------
Total equity 1,301,904 1,273,688 1,233,040 1,232,065 1,207,166
--------- --------- --------- --------- ---------
Total
liabilities
and equity $14,085,746 $13,869,140 $13,476,493 $13,372,230 $14,057,515
=========== =========== =========== =========== =========
Selected Financial Data
(Amounts in thousands, except per share data)
(Unaudited)
4Q13 3Q13 2Q13 1Q13 4Q12
---- ---- ---- ---- ----
Selected Statement of
Income Data:
Net interest
income $108,456 $105,835 $103,732 $103,040 $104,803
Net revenue
(1)(2) $136,036 $134,426 $133,546 $134,292 $135,022
Operating
profit (1)(2) $60,209 $63,157 $56,291 $55,329 $53,707
Provision for
loan and
covered loan
losses $4,476 $8,120 $8,843 $10,357 $13,177
Income before
income taxes $54,893 $54,219 $46,643 $44,188 $39,765
Net income
available to
common
stockholders $33,706 $33,058 $28,915 $27,270 $20,040
Per Common Share Data:
Basic earnings
per share $0.43 $0.42 $0.37 $0.35 $0.26
Diluted
earnings per
share $0.43 $0.42 $0.37 $0.35 $0.26
Dividends
declared $0.01 $0.01 $0.01 $0.01 $0.01
Book value
(period end)
(1) $16.75 $16.40 $15.88 $15.87 $15.65
Tangible book
value (period
end) (1)(2) $15.43 $15.05 $14.52 $14.49 $14.26
Market value
(close) $28.93 $21.40 $21.22 $18.89 $15.32
Book value
multiple 1.73 x 1.31 x 1.34 x 1.19 x 0.98 x
Share Data:
Weighted-
average common
shares
outstanding 76,533 76,494 76,415 76,143 75,035
Weighted-
average
diluted common
shares
outstanding 76,967 76,819 76,581 76,203 75,374
Common shares
issued (period
end) 77,982 77,993 78,015 78,050 78,062
Common shares
outstanding
(period end) 77,708 77,680 77,630 77,649 77,115
Performance Ratio:
Return on
average assets 0.96% 0.96% 0.86% 0.81% 0.67%
Return on
average common
equity 10.28% 10.43% 9.28% 9.01% 6.64%
Return on
average
tangible
common equity
(1)(2) 11.33% 11.55% 10.30% 10.04% 7.45%
Net interest
margin (1)(2) 3.18% 3.18% 3.22% 3.19% 3.16%
Fee revenue as
a percent of
total revenue
(1) 19.61% 20.72% 21.77% 22.45% 21.83%
Non-interest
income to
average assets 0.76% 0.81% 0.87% 0.91% 0.85%
Non-interest
expense to
average assets 2.16% 2.07% 2.31% 2.35% 2.35%
Net overhead
ratio (1) 1.40% 1.26% 1.44% 1.44% 1.50%
Efficiency
ratio (1)(2) 55.74% 53.02% 57.85% 58.80% 60.22%
Balance Sheet Ratios:
Loans to
deposits
(period end)
(3) 88.60% 87.97% 89.27% 88.08% 83.29%
Average
interest-
earning assets
to average
interest-
bearing
liabilities 144.87% 140.72% 139.76% 141.21% 150.03%
Capital Ratios (period
end):
Total risk-
based capital
(1) 13.30% 13.48% 13.70% 13.58% 13.17%
Tier 1 risk-
based capital
(1) 11.08% 11.05% 11.04% 10.90% 10.51%
Tier 1 leverage
ratio (1) 10.37% 10.32% 10.25% 9.86% 9.56%
Tier 1 common
equity to
risk-weighted
assets
(1)(2)(4) 9.19% 9.11% 9.05% 8.89% 8.52%
Tangible common
equity to
tangible
assets (1)(2) 8.57% 8.49% 8.43% 8.48% 7.88%
Total equity to
total assets 9.24% 9.18% 9.15% 9.21% 8.59%
(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.
(4) Does not give effect to the final Basel III capital rules adopted and issued by the Federal Reserve Board in July 2013.
Selected Financial Data (continued)
(Dollars in thousands)
(Unaudited)
4Q13 3Q13 2Q13 1Q13 4Q12
---- ---- ---- ---- ----
Additional Selected
Information:
Increase
(decrease)
credit
valuation
adjustment on
capital
markets
derivatives
(1) $619 $(521) $1,882 $246 $854
Salaries and employee
benefits:
Salaries and
wages $23,971 $23,639 $23,397 $24,015 $24,333
Share-based
costs 3,316 3,261 3,236 2,863 5,665
Incentive
compensation,
retirement
costs and
other
employee
benefits 15,288 14,460 13,221 16,262 15,255
Total salaries
and employee
benefits $42,575 $41,360 $39,854 $43,140 $45,253
Provision for
unfunded
commitments $1,019 $(1,346) $467 $1,723 $(867)
Assets under
management
and
administration
(AUMA) (1) $5,731,980 $5,570,614 $5,427,498 $5,515,199 $5,196,094
Custody assets
included in
AUMA $2,506,291 $2,427,093 $2,351,163 $2,438,600 $2,345,410
SOURCE PrivateBancorp, Inc.
