PrivateBancorp Inc. (PVTB, Financial) filed Quarterly Report for the period ended 2009-03-31.
PRIVATEBANCORP is a bank holding company for The PrivateBank and Trust Company. PrivateBancorp Inc. has a market cap of $849.87 million; its shares were traded at around $25.29 with and P/S ratio of 1.9. The dividend yield of PrivateBancorp Inc. stocks is 0.16%. PrivateBancorp Inc. had an annual average earning growth of 5.9% over the past 5 years.
Total deposits were $7.8 billion at March 31, 2009, compared to $8.0 billion at December 31, 2008. Client deposits increased to $6.9 billion at March 31, 2009, from $6.0 billion at December 31, 2008. Client deposits at March 31, 2009, include $865.7 million in client CDARS® deposits. Brokered deposits (excluding client CDARS) decreased to 11% of total deposits in the first quarter 2009, from 26% of total deposits as of March 31, 2008, and 25% of total deposits at the end of 2008.
Net revenue, on a tax equivalent basis, grew 94% over the first quarter 2008 to $88.3 million from $45.5 million in the first quarter 2008. This increase was driven by stronger net interest income and non-interest income. Net interest income totaled $63.9 million in the first quarter 2009, compared to $36.0 million in the first quarter 2008, an increase of 78%. Net interest margin (on a tax equivalent basis) was 2.68%, compared to 2.88% for the first quarter 2008.
Non-interest income, excluding securities gains and losses, was $22.8 million in the first quarter 2009, an increase of 196% from $7.7 million in the first quarter 2008. Capital markets income grew to $11.2 million, compared with $391,000 in the first quarter 2008, as clients increased their use of derivatives for interest rate risk management. Mortgage banking income increased to $2.2 million in the first quarter 2009, compared to $1.5 million in the first quarter 2008, primarily related to refinancing activity from more favorable interest rates. Treasury management income was $1.6 million in the first quarter 2009 up from $184,000 in the first quarter 2008 primarily due to the rollout of new products and services. Banking and other services income increased to $3.6 million in the first quarter 2009, compared to $746,000 in the first quarter 2008, due to an increase in letter of credit fees and transaction-related fees.
The credit markets remain challenging, and the Company continues to make credit, oversight and monitoring decisions a key priority. The first quarter 2009 provision for loan losses was $17.8 million, compared to $17.1 million in the first quarter 2008. The allowance for loan losses as a percentage of total loans was 1.50% at March 31, 2009, compared with 1.40% at December 31, 2008. Gross charge-offs during the first quarter 2009 were $7.0 million, offset by recoveries of $3.6 million. The Company had $191.6 million in total non-performing assets at March 31, 2009, compared to $155.7 million at December 31, 2008, reflecting a weakening credit environment. Non-performing assets to total assets were 1.85% at March 31, 2009, compared to 1.55% at December 31, 2008.
As shown in Table 2, first quarter 2009 tax-equivalent net interest income increased to $64.7 million compared to $37.0 million in the first quarter 2008. The increase in interest-earning assets increased interest income by $56.8 million, while a decline in the average rate earned on interest-earning assets reduced interest income by $30.2 million. First quarter 2009 interest expense declined $1.2 million compared to first quarter 2008. The increase in interest-bearing liabilities increased interest expense by $28.1 million, but the shift to less expensive wholesale borrowing, coupled with an overall decrease in the average rate paid on interest-bearing liabilities reduced interest expense by $29.3 million.
Read the The complete ReportPVTB is in the portfolios of John Rogers of ARIEL CAPITAL MANAGEMENT LLC, John Keeley of Keeley Fund Management.
PRIVATEBANCORP is a bank holding company for The PrivateBank and Trust Company. PrivateBancorp Inc. has a market cap of $849.87 million; its shares were traded at around $25.29 with and P/S ratio of 1.9. The dividend yield of PrivateBancorp Inc. stocks is 0.16%. PrivateBancorp Inc. had an annual average earning growth of 5.9% over the past 5 years.
Highlight of Business Operations:
Total loans increased $446.8 million to $8.5 billion at March 31, 2009, from $8.0 billion at December 31, 2008. Commercial loans, including commercial and industrial and owner-occupied commercial real estate loans, increased to 52% of the Companys total loans at the end of the first quarter 2009 from 49% of total loans at December 31, 2008. Commercial real estate loans decreased to 28% of total loans at the end of the first quarter 2009, compared to 30% of the Companys total loans at the end of 2008. We continue to achieve further loan diversification, which we sought through implementation of the Plan.Total deposits were $7.8 billion at March 31, 2009, compared to $8.0 billion at December 31, 2008. Client deposits increased to $6.9 billion at March 31, 2009, from $6.0 billion at December 31, 2008. Client deposits at March 31, 2009, include $865.7 million in client CDARS® deposits. Brokered deposits (excluding client CDARS) decreased to 11% of total deposits in the first quarter 2009, from 26% of total deposits as of March 31, 2008, and 25% of total deposits at the end of 2008.
Net revenue, on a tax equivalent basis, grew 94% over the first quarter 2008 to $88.3 million from $45.5 million in the first quarter 2008. This increase was driven by stronger net interest income and non-interest income. Net interest income totaled $63.9 million in the first quarter 2009, compared to $36.0 million in the first quarter 2008, an increase of 78%. Net interest margin (on a tax equivalent basis) was 2.68%, compared to 2.88% for the first quarter 2008.
Non-interest income, excluding securities gains and losses, was $22.8 million in the first quarter 2009, an increase of 196% from $7.7 million in the first quarter 2008. Capital markets income grew to $11.2 million, compared with $391,000 in the first quarter 2008, as clients increased their use of derivatives for interest rate risk management. Mortgage banking income increased to $2.2 million in the first quarter 2009, compared to $1.5 million in the first quarter 2008, primarily related to refinancing activity from more favorable interest rates. Treasury management income was $1.6 million in the first quarter 2009 up from $184,000 in the first quarter 2008 primarily due to the rollout of new products and services. Banking and other services income increased to $3.6 million in the first quarter 2009, compared to $746,000 in the first quarter 2008, due to an increase in letter of credit fees and transaction-related fees.
The credit markets remain challenging, and the Company continues to make credit, oversight and monitoring decisions a key priority. The first quarter 2009 provision for loan losses was $17.8 million, compared to $17.1 million in the first quarter 2008. The allowance for loan losses as a percentage of total loans was 1.50% at March 31, 2009, compared with 1.40% at December 31, 2008. Gross charge-offs during the first quarter 2009 were $7.0 million, offset by recoveries of $3.6 million. The Company had $191.6 million in total non-performing assets at March 31, 2009, compared to $155.7 million at December 31, 2008, reflecting a weakening credit environment. Non-performing assets to total assets were 1.85% at March 31, 2009, compared to 1.55% at December 31, 2008.
As shown in Table 2, first quarter 2009 tax-equivalent net interest income increased to $64.7 million compared to $37.0 million in the first quarter 2008. The increase in interest-earning assets increased interest income by $56.8 million, while a decline in the average rate earned on interest-earning assets reduced interest income by $30.2 million. First quarter 2009 interest expense declined $1.2 million compared to first quarter 2008. The increase in interest-bearing liabilities increased interest expense by $28.1 million, but the shift to less expensive wholesale borrowing, coupled with an overall decrease in the average rate paid on interest-bearing liabilities reduced interest expense by $29.3 million.
Read the The complete ReportPVTB is in the portfolios of John Rogers of ARIEL CAPITAL MANAGEMENT LLC, John Keeley of Keeley Fund Management.
