Press Release

PrivateBancorp Reports Fourth Quarter and Full Year 2016 Earnings

Earnings per share up 12 percent from prior year quarter and up 11 percent for the year

Company Release - 1/18/2017 7:30 AM ET

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
December 31,


Year Ended
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.