PrivateBancorp Inc. (PVTB, Financial) filed Quarterly Report for the period ended 2009-06-30.
PRIVATEBANCORP is a bank holding company for The PrivateBank and Trust Company. PrivateBancorp Inc. has a market cap of $1.25 billion; its shares were traded at around $27.53 with and P/S ratio of 2.7. The dividend yield of PrivateBancorp Inc. stocks is 0.1%. PrivateBancorp Inc. had an annual average earning growth of 5.9% over the past 5 years.
Total deposits were $8.3 billion at June 30, 2009, compared to $8.0 billion at December 31, 2008. Client deposits increased to $7.4 billion at June 30, 2009, from $6.0 billion at December 31, 2008. Client deposits at June 30, 2009, include $1.0 billion in client CDARS® deposits. Brokered deposits (excluding client CDARS®) were 11% of total deposits at June 30, 2009, a decrease from 25% of total deposits at December 31, 2008.
Non-interest income, excluding securities gains and losses and early extinguishment of debt, was $14.6 million in the second quarter 2009, compared to $9.2 million in the second quarter 2008 due to a higher volume of fee based revenue given the growth in the balance sheet. Treasury management income was $2.1 million in the second quarter 2009 compared to $499,000 in the second quarter 2008. Capital markets revenue was $3.8 million, compared with $2.0 million in the second quarter 2008. Mortgage banking income increased to $2.7 million in the second quarter 2009, compared to $1.2 million for the second quarter 2008. Banking and other services income was $2.1 million in the second quarter 2009, compared to $682,000 in the second quarter 2008.
The second quarter 2009 provision for loan losses was $21.5 million, compared to $23.0 million in the second quarter 2008. The allowance for loan losses as a percentage of total loans was increased to 1.60% at June 30, 2009, compared with 1.40% at December 31, 2008. Charge-offs were $12.6 million for the quarter ended June 30, 2009, offset by recoveries of $4.1 million, and $109.5 million for the quarter ended December 31, 2008, offset by recoveries of $658,000.
As shown in Table 2, second quarter 2009 tax-equivalent net interest income increased to $75.1 million compared to $43.7 million in the second quarter 2008. The increase in interest-earning assets increased interest income by $43.6 million, while a decline in the average rate earned on interest-earning assets reduced interest income by $24.0 million. Second quarter 2009 interest expense declined $11.8 million compared to second quarter 2008. The increase in interest-bearing liabilities increased interest expense by $14.8 million, but the shift to less expensive wholesale borrowings, coupled with an overall decrease in the average rate paid on interest-bearing liabilities reduced interest expense by $26.6 million.
For the six months ended June 30, 2009, net interest margin was 2.84% compared to 2.81% for the prior year period. Tax-equivalent net interest income increased to $139.8 million for the six months ended June 30, 2009 compared to $80.7 million in the prior year period. The increase in interest-earning assets increased interest income by $100.3 million, while a decline in the average rate earned on interest-earning assets reduced interest income by $54.1 million. Interest expense for the six months ended June 30, 2009 declined $13.0 million compared to the prior year period. The increase in interest-bearing liabilities increased interest expense by $42.7 million, but the shift to less expensive wholesale borrowings, coupled with an overall decrease in the average rate paid on interest-bearing liabilities reduced interest expense by $55.7 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 $1.25 billion; its shares were traded at around $27.53 with and P/S ratio of 2.7. The dividend yield of PrivateBancorp Inc. stocks is 0.1%. PrivateBancorp Inc. had an annual average earning growth of 5.9% over the past 5 years.
Highlight of Business Operations:
On July 2, 2009, we announced that The PrivateBank and Trust Company (the “PrivateBank”) agreed to acquire all of the non-brokered deposits and certain assets of the former Founders Bank from the FDIC. Founders Bank had approximately $843 million in deposits and approximately $592 million in loans receivable at July 2, 2009. The PrivateBank agreed to assume certain liabilities, including non-brokered deposits, of $767 million and $24 million of Federal Home Loan Bank (“FHLB”) advances. Assets totaling approximately $843 million were purchased at a discount of $54 million. The PrivateBank also succeeded the former Founders Bank under trusts, executorships, administrations, guardianships, agencies and other fiduciary or representative capacities with respect to assets valued at approximately $450 million. The PrivateBank did not assume any liability based on action or inaction of the former Founders Bank with respect to its trust business. The agreement with the FDIC included a loss share component that provides The PrivateBank with protection from certain loan losses, as defined. We believe this transaction provides funding diversification through a strong core deposit franchise consistent with the objectives of the Plan. Furthermore, the transaction extends our geographic footprint to the southwest suburbs of Chicago and extends our ability to offer commercial loan products through these offices.Total deposits were $8.3 billion at June 30, 2009, compared to $8.0 billion at December 31, 2008. Client deposits increased to $7.4 billion at June 30, 2009, from $6.0 billion at December 31, 2008. Client deposits at June 30, 2009, include $1.0 billion in client CDARS® deposits. Brokered deposits (excluding client CDARS®) were 11% of total deposits at June 30, 2009, a decrease from 25% of total deposits at December 31, 2008.
Non-interest income, excluding securities gains and losses and early extinguishment of debt, was $14.6 million in the second quarter 2009, compared to $9.2 million in the second quarter 2008 due to a higher volume of fee based revenue given the growth in the balance sheet. Treasury management income was $2.1 million in the second quarter 2009 compared to $499,000 in the second quarter 2008. Capital markets revenue was $3.8 million, compared with $2.0 million in the second quarter 2008. Mortgage banking income increased to $2.7 million in the second quarter 2009, compared to $1.2 million for the second quarter 2008. Banking and other services income was $2.1 million in the second quarter 2009, compared to $682,000 in the second quarter 2008.
The second quarter 2009 provision for loan losses was $21.5 million, compared to $23.0 million in the second quarter 2008. The allowance for loan losses as a percentage of total loans was increased to 1.60% at June 30, 2009, compared with 1.40% at December 31, 2008. Charge-offs were $12.6 million for the quarter ended June 30, 2009, offset by recoveries of $4.1 million, and $109.5 million for the quarter ended December 31, 2008, offset by recoveries of $658,000.
As shown in Table 2, second quarter 2009 tax-equivalent net interest income increased to $75.1 million compared to $43.7 million in the second quarter 2008. The increase in interest-earning assets increased interest income by $43.6 million, while a decline in the average rate earned on interest-earning assets reduced interest income by $24.0 million. Second quarter 2009 interest expense declined $11.8 million compared to second quarter 2008. The increase in interest-bearing liabilities increased interest expense by $14.8 million, but the shift to less expensive wholesale borrowings, coupled with an overall decrease in the average rate paid on interest-bearing liabilities reduced interest expense by $26.6 million.
For the six months ended June 30, 2009, net interest margin was 2.84% compared to 2.81% for the prior year period. Tax-equivalent net interest income increased to $139.8 million for the six months ended June 30, 2009 compared to $80.7 million in the prior year period. The increase in interest-earning assets increased interest income by $100.3 million, while a decline in the average rate earned on interest-earning assets reduced interest income by $54.1 million. Interest expense for the six months ended June 30, 2009 declined $13.0 million compared to the prior year period. The increase in interest-bearing liabilities increased interest expense by $42.7 million, but the shift to less expensive wholesale borrowings, coupled with an overall decrease in the average rate paid on interest-bearing liabilities reduced interest expense by $55.7 million.
Read the The complete ReportPVTB is in the portfolios of John Rogers of ARIEL CAPITAL MANAGEMENT LLC, John Keeley of Keeley Fund Management.
