-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, GpkC15o/SciHV5aJTopMGpU1pStZZnLLtPy9EKfSIJj7TZghQxL+xDgM5R7LjNqE ps+6R3BYKI6H5u/Z2sNadQ== 0000913849-03-000318.txt : 20030721 0000913849-03-000318.hdr.sgml : 20030721 20030718181130 ACCESSION NUMBER: 0000913849-03-000318 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 20030721 ITEM INFORMATION: Other events ITEM INFORMATION: Financial statements and exhibits ITEM INFORMATION: Regulation FD Disclosure FILED AS OF DATE: 20030721 FILER: COMPANY DATA: COMPANY CONFORMED NAME: PRIVATEBANCORP INC CENTRAL INDEX KEY: 0000889936 STANDARD INDUSTRIAL CLASSIFICATION: STATE COMMERCIAL BANKS [6022] IRS NUMBER: 363681151 STATE OF INCORPORATION: DE FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 8-K SEC ACT: 1934 Act SEC FILE NUMBER: 000-25887 FILM NUMBER: 03793649 BUSINESS ADDRESS: STREET 1: TEN NORTH DEARBORN SUITE 900 CITY: CHICAGO STATE: IL ZIP: 60602 MAIL ADDRESS: STREET 1: TEN NORTH DEARBORN STREET CITY: CHICAGO STATE: IL ZIP: 60602 8-K 1 f8k_071603.txt FORM 8-K FOR PERIOD ENDING 7/21/03 UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 8-K CURRENT REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 Date of Report (Date of earliest event reported): JULY 21, 2003 PRIVATEBANCORP, INC. (Exact Name of Registrant as Specified in its Charter) ____________________________ DELAWARE 000-25887 36-3681151 (State or other jurisdiction (Commission file number) (I.R.S. employer of incorporation) identification no.) TEN NORTH DEARBORN CHICAGO, ILLINOIS 60602 (Address of principal (Zip Code) executive offices) Registrant's telephone number, including area code: (312) 683-7100 NOT APPLICABLE (Former name or former address, if changed since last report) ITEM 5. OTHER EVENTS. ------------ On July 21, 2003, PrivateBancorp, Inc. (the "Company") announced its earnings results for the quarter ended June 30, 2003. Attached as Exhibit 99.1 is a copy of the press release relating to the Company's earnings results, which is incorporated herein by reference. ITEM 7(c). EXHIBITS. -------- Exhibit 99.1 Press Release dated July 21, 2003. ITEM 12. RESULTS OF OPERATIONS AND FINANCIAL CONDITION. --------------------------------------------- Certain supplemental information relating to non-GAAP financial measures reported in the attached press release is included on page 7 of Exhibit 99.1. 2 SIGNATURES ---------- Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized. PRIVATEBANCORP, INC. Date: July 21, 2003 By: /s/ Ralph B. Mandell Ralph B. Mandell President and Chief Executive Officer 3 INDEX TO EXHIBITS ----------------- Exhibit - ------- 99.1 Press Release dated July 21, 2003 4 EX-99.1 3 ex99-1_071603.txt PRESS RELEASE DATED 7/21/03 EXHIBIT 99.1 FOR FURTHER INFORMATION: Dennis Klaeser, CFO PrivateBancorp, Inc. 312-683-7100 For Immediate Release PRIVATEBANCORP REPORTS RECORD SECOND QUARTER EARNINGS Earnings per share up 70 percent over second quarter 2002 and 27 percent over first quarter 2003 Chicago, IL, July 21, 2003--- PrivateBancorp, Inc. (NASDAQ: PVTB) today reported earnings per share of $0.56 per diluted share for the second quarter 2003 compared to second quarter 2002 earnings per diluted share of $0.33, an increase of 70 percent. Net income for the second quarter ended June 30, 2003 was $4.6 million, an increase of 77 percent over second quarter 2002 net income of $2.6 million. Net income for the six months ended June 30, 2003 was $8.2 million, or $1.01 per diluted share, compared to net income of $4.8 million, or $0.62 per diluted share, for the six months ended June 30, 2002, an increase in diluted earnings per share of 63 percent. All per share amounts have been adjusted to reflect the three-for-two stock split effected in the form of a 50 percent stock dividend paid to shareholders on January 17, 2003. "Our earnings growth this past quarter was driven by a significant increase in noninterest income due to securities gains, accompanied by sustained loan, investment securities and deposit growth at both of our banks," said Ralph B. Mandell, Chairman, President and CEO. "We are pleased to report that our asset quality remains strong. Our ratio of non-performing loans to total loans was 0.26 percent and nonaccrual loans to total loans WAS 0.08 percent," added Mandell. Net interest income totaled $12.6 million in the second quarter of 2003, an increase of 26 percent over second quarter 2002 net interest income of $10.0 million, and a decrease of 3 percent as compared to first quarter 2003 net interest income of $13.0 million. Average earning assets during the period were $1.58 billion, compared to $1.21 billion in the prior year quarter, 1 an increase of 31 percent. Average earning assets increased by $92.2 million, or 6 percent during the second quarter of 2003 as compared to the first quarter 2003. Net interest margin (on a tax equivalent basis) was 3.33 percent in the second quarter of 2003, down from 3.53 percent in the prior year second quarter and down from 3.68 percent in the first quarter of 2003. The margin compression during the second quarter of 2003 reflects decreases in yields on average earning assets partially offset by a decrease in the costs of average interest-bearing liabilities from the yields and costs incurred in the first quarter of 2003. Approximately half of the sequential quarter margin compression was due to an additional $45.0 million investment in Federal Home Loan Bank ("FHLB") stock that was made in May 2003. Recognition of dividends on the recently acquired FHLB stock lag the purchase date due to the timing of the FHLB dividend declaration. The remaining margin compression was due to the combined impact of accelerated amortization on our mortgage- backed and collateralized mortgage obligation securities ("CMO"), lower loan yields and the sale of a higher yielding security in our investment portfolio, resulting in lower overall yields on investment securities. The provision for loan losses was $730,000 for the second quarter 2003, compared to $1.6 million in the prior year second quarter and $956,000 in the first quarter 2003. Net charge-offs totaled $182,000 in the quarter ended June 30, 2003 versus net charge-offs of $490,000 in the prior year quarter and $70,000 in the first quarter 2003. The allowance as a percentage of total loans was 1.22 percent as of June 30, 2003 compared to 1.14 percent at June 30, 2002 and 1.22 percent at March 31, 2003. Noninterest income was $4.4 million in the second quarter of 2003, reflecting an increase of approximately $2.4 million or 114 percent from the second quarter of 2002. The increase in noninterest income was attributable primarily to net securities gains of $2.3 million, reduced by a trading loss on an interest rate swap of $1.1 million, the inclusion of Lodestar Investment Counsel, LLC asset management revenue as well as increases in fee income as a result of increases in residential mortgage originations. Sales of residential real estate loans generated $1.0 million of income during the second quarter 2003 compared to $782,000 in the first quarter 2003 and $503,000 during the prior year quarter as a result of continued strong demand for residential real estate loans. During the second quarter 2003, we recognized a gain of $2.4 million on the sale of a single $10.0 million corporate bond from our available-for-sale investment security portfolio. The value of the security increased as a result of declines in interest rates during the quarter. The proceeds from the sale have been invested in assets that management believes will be impacted 2 to a lesser degree by rising interest rates. Securities gains and losses for the second quarter 2003 also include a permanent impairment write-down of $210,000 on the Company's interest-only CMO investments. Continued low levels of market interest rates during the second quarter 2003 resulted in accelerated mortgage prepayments, which further impaired the fair value of our interest-only CMO securities. Our remaining investment in interest-only CMO securities was approximately $120,000 as of June 30, 2003. The increase in noninterest income was partially offset by a second quarter 2003 trading loss of approximately $1.1 million recorded to reflect the fair market value adjustment on an interest rate swap. This interest rate swap was entered into during the third quarter of 2002 in order to hedge a portion of the Company's investment in long-term municipal bonds. The change in the fair market value of the swap is recognized in earnings and results in a loss because of continued declines in market rates of interest since the end of the first quarter 2003. Wealth management assets under management were $1.3 billion at June 30, 2003 compared to $1.2 billion at March 31, 2003 and $733.9 million at June 30, 2002. Lodestar revenue was $756,000 during the second quarter 2003. Trust fee revenue was $824,000 during the second quarter 2003, an increase of $65,000 from the first quarter 2003 and an increase of $47,000 from the prior year second quarter. Increases in Wealth Management asset management revenue reflect the impact of net new business generated during the quarter augmented by a modest rebound in the equity markets. Noninterest expense increased to $9.8 million in the second quarter of 2003 from $7.1 million in the second quarter of 2002 and up 4 percent as compared to $9.4 million in the first quarter 2003. The 37 percent increase in noninterest expense on a year over year basis is attributable primarily to increased costs associated with continued growth of the Company and the operations of Lodestar. As previously reported, in April 2003, The PrivateBank (Chicago) suffered a loss of $400,000 in a check fraud scheme involving a new account deposit. On June 27, 2003, the Company received a letter from its insurance carrier declining coverage for the loss. As a result, the Company recorded a second quarter 2003 charge of $400,000. The Company is continuing to pursue recovery of the fraud loss in excess of the $150,000 deductible from its insurance carrier. Our full-time equivalent employees increased to 194 at June 30, 2003 from 181 a year ago and remain unchanged from the first quarter 2003. Our efficiency ratio of 55.0 percent in the second quarter of 2003 remained relatively unchanged from 55.4 percent in the prior year quarter and is down from 58.5 percent in the first quarter 2003. 3 Deposits grew by 6 percent during the quarter to $1.446 billion, compared to total deposits of $1.365 billion as of March 31, 2003. Deposits as of June 30, 2003 increased by 20 percent from $1.205 billion at December 31, 2002. Loans as of June 30, 2003 increased by 5 percent, or $49.0 million, to $1.067 billion as compared to loans of $1.018 billion at March 31, 2003. Loans increased by 11 percent at June 30, 2003 as compared to $965.6 million at December 31, 2002. At June 30, 2003, nonperforming loans as a percentage of total loans were 0.26 percent, versus 0.35 percent at March 31, 2003 and 0.14 percent at December 31, 2002. At June 30, 2003, nonaccrual loans as a percentage of total loans were 0.08 percent, versus 0.15 percent at March 31, 2003 and 0.08 percent at December 31, 2002. PrivateBancorp, Inc. was organized in 1989 to provide highly personalized financial services primarily to affluent individuals, professionals, owners of closely-held businesses and commercial real estate investors. The Company operates two banking subsidiaries, The PrivateBank and Trust Company and The PrivateBank (St. Louis). The PrivateBank and Trust Company subsidiary has a controlling interest in a Chicago-based investment advisor, Lodestar Investment Counsel LLC. The Company, which had assets of $1.8 billion at June 30, 2003, currently has banking offices in Chicago, Wilmette, Oak Brook, St. Charles, Lake Forest, Winnetka, and Geneva, Illinois, and in St. Louis, Missouri. Additional information can be found in the Investor Relations section of PrivateBancorp, Inc.'s website at www.privatebankandtrust.com ================================================================================ Forward-Looking Statements: Statements contained in this news release that are not historical facts may constitute forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended. The Company's ability to predict results or the actual effect of future plans or strategies is inherently uncertain. Factors which could have a material adverse effect on the operations, future prospects and earnings per share of the Company include, but are not limited to, fluctuations in market rates of interest and loan and deposit pricing, greater than anticipated deterioration in asset quality due to a prolonged economic downturn in the greater Chicago and St. Louis metropolitan areas, legislative or regulatory changes, adverse developments in the Company's loan or investment portfolios, competition and the potential dilutive effect of the pending common stock offering and the possible dilutive effect of potential acquisitions, expansion or future capital raises. These risks and uncertainties should be considered in evaluating forward- looking statements and undue reliance should not be placed on such statements. The Company assumes no obligation to update publicly any of these statements in light of future events. Editor's Note: Financial highlights attached. ### 4 PRIVATEBANCORP, INC. CONSOLIDATED STATEMENTS OF INCOME (DOLLARS IN THOUSANDS EXCEPT PER SHARE DATA)
THREE MONTHS ENDED SIX MONTHS ENDED JUNE 30, JUNE 30, ------------------------------- ----------------------------- 2003 2002 2003 2002 ------------ ------------- ------------- ------------ UNAUDITED UNAUDITED UNAUDITED UNAUDITED INTEREST INCOME Interest and fees on loans............... $15,208 $12,665 $30,375 $24,813 Interest on investment securities........ 5,148 4,886 10,527 9,092 Interest on short-term investments....... 31 8 56 25 ------- ------- ------- ------- Total interest income................. 20,387 17,559 40,958 33,930 ------- ------- ------- ------- INTEREST EXPENSE Interest on deposits..................... 6,140 5,741 11,917 11,954 Interest on borrowings................... 1,204 1,353 2,516 2,662 Interest on long-term debt - Trust Preferred Securities............................ 485 485 970 970 ------- ------- ------- ------- Total interest expense................ 7,829 7,579 15,403 15,586 ------- ------- ------- ------- NET INTEREST INCOME 12,558 9,980 25,555 18,344 Provision for loan losses................ 730 1,609 1,686 2,120 ------- ------- ------- ------- Net interest income after provision... 11,828 8,371 23,869 16,224 ------- ------- ------- ------- NON-INTEREST INCOME Banking, wealth management services and other income................................ 3,181 1,802 5,882 3,344 Net securities gains..................... 2,310 274 2,255 44 Trading losses on interest rate swap..... (1,054) -- (1,284) -- ------- ------- ------- ------- Total non-interest income............. 4,437 2,076 6,853 3,388 ------- ------- ------- ------- NON-INTEREST EXPENSE Salaries and benefits.................... 5,070 3,469 9,848 6,683 Other operating expenses................. 4,644 3,644 9,243 6,902 Amortization of intangibles.............. 42 -- 84 -- ------- ------- ------- ------- Total non-interest expense............ 9,756 7,113 19,175 13,585 ------- ------- ------- ------- Minority interest expense................ 44 -- 82 -- ------- ------- ------- ------- Income before income taxes............... 6,465 3,334 11,465 6,027 ------- ------- ------- ------- Income tax expense....................... 1,852 724 3,249 1,273 ------- ------- ------- ------- Net income............................... $ 4,613 $ 2,610 $ 8,216 $ 4,754 ======= ======= ======= ======= WEIGHTED AVERAGE SHARES O/S.............. 7,649,749 7,378,748 7,625,412 7,333,143 DILUTED AVERAGE SHARES O/S............... 8,174,011 7,808,900 8,145,106 7,709,807 EARNINGS PER SHARE Basic.................................... $0.60 $0.35 $1.08 $0.65 Diluted.................................. $0.56 $0.33 $1.01 $0.62
NOTE 1: Certain reclassifications have been made to prior period statements to place them on a basis comparable with the current period financial statements. NOTE 2: All previously reported share and per share data has been restated to reflect the 3-for-2 stock split which occurred on January 17, 2003. 5 PRIVATEBANCORP, INC. CONSOLIDATED BALANCE SHEETS (DOLLARS IN THOUSANDS EXCEPT PER SHARE DATA)
06/30/03 12/31/02 06/30/02 ------------ ------------ ------------ UNAUDITED UNAUDITED ASSETS Cash and due from banks..................................... $ 51,771 $ 34,529 $ 39,625 Short-term investments...................................... 9,145 258 75 Investment securities - available for sale.................. 581,743 487,020 392,090 Loans held for sale......................................... 12,282 14,321 3,913 Loans....................................................... 1,067,208 965,641 865,778 Allowance for loan losses................................... (13,019) (11,585) (9,909) ---------- ---------- ---------- Net loans................................................ 1,054,189 954,056 855,869 Premises and equipment, net................................. 6,284 6,851 6,455 Goodwill.................................................... 19,242 19,199 10,805 Other assets................................................ 25,020 27,180 23,176 ---------- ---------- ---------- Total Assets............................................. $1,759,676 $1,543,414 $1,332,008 ========== ========== ========== LIABILITIES Non-interest bearing deposits............................... $ 110,244 $ 88,986 $ 81,421 Interest bearing deposits................................... 1,335,346 1,116,285 993,054 ---------- ---------- ---------- Total deposits........................................... 1,445,590 1,205,271 1,074,475 ---------- ---------- ---------- Borrowings.................................................. 170,433 209,954 154,499 Long-term debt - Trust Preferred Securities................. 20,000 20,000 20,000 Other liabilities........................................... 23,313 19,097 11,337 ---------- ---------- ---------- Total Liabilities........................................ 1,659,336 1,454,322 1,260,311 ---------- ---------- ---------- STOCKHOLDERS' EQUITY Common stock and additional paid-in-capital................. 53,504 53,071 47,221 Retained earnings........................................... 35,377 27,784 21,927 Accumulated other comprehensive income...................... 11,861 8,826 4,231 Deferred compensation....................................... (402) (589) (732) Loans to executive officers................................. -- -- (950) ---------- ---------- ---------- Total Stockholders' Equity............................... 100,340 89,092 71,697 ---------- ---------- ---------- TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY.................. $1,759,676 $1,543,414 $1,332,008 ========== ========== ========== BOOK VALUE PER SHARE........................................ $ 12.89 $ 11.56 $ 9.71
NOTE 1: Certain reclassifications have been made to prior period statements to place them on a basis comparable with the current period financial statements. NOTE 2: All previously reported share and per share data has been restated to reflect the 3-for-2 stock split which occurred on January 17, 2003. 6 PRIVATEBANCORP, INC. KEY FINANCIAL DATA UNAUDITED (DOLLARS IN THOUSANDS EXCEPT PER SHARE DATA)
2Q03 1Q03 4Q02 3Q02 2Q02 -------- -------- -------- -------- -------- KEY STATISTICS Net income................................... $4,613 $3,603 $3,220 $3,033 $2,610 Basic earnings per share..................... $ 0.60 $ 0.47 $ 0.43 $ 0.41 $ 0.35 Diluted earnings per share................... $ 0.56 $ 0.44 $ 0.41 $ 0.39 $ 0.33 Return on average total assets............... 1.10% 0.92% 0.88% 0.89% 0.82% Return on average total equity............... 18.81% 15.49% 15.99% 15.86% 15.07% Dividend payout ratio........................ 6.75% 8.62% 6.14% 6.51% 5.66% Non-interest income to average assets........ 1.06% 0.62% 0.38% 0.41% 0.65% Non-interest expense to average assets....... 2.33% 2.41% 2.16% 2.08% 2.24% Net overhead ratio(1)........................ 1.27% 1.80% 1.78% 1.68% 1.59% Efficiency ratio(2).......................... 55.0% 58.5% 57.3% 56.3% 55.4% Net interest margin(3)....................... 3.33% 3.68% 3.56% 3.46% 3.53% Yield on average earning assets.............. 5.30% 5.73% 5.79% 5.90% 6.03% Cost of average interest-bearing liabilities. 2.14% 2.20% 2.42% 2.63% 2.69% Net interest spread(4)....................... 3.16% 3.53% 3.37% 3.27% 3.34% Tax equivalent adjustment to net interest income(5)................................. $ 742 $ 695 $ 661 $ 756 $ 790
- ------------------ NOTE 1: All previously reported share and per share data has been restated to reflect the 3-for-2 stock split which occurred on January 17, 2003. (1) Non-interest expense less non-interest income divided by average total assets. (2) Non-interest expense divided by the sum of net interest income, on a tax equivalent basis, plus non-interest income. (3) Net interest income, on a tax equivalent basis, divided by average interest-earning assets. (4) Yield on average interest-earning assets less rate on average interest-bearing liabilities. (5) The company adjusts GAAP reported net interest income by the tax equivalent adjustment amount to account for the tax attributes on federally tax exempt municipal securities. For GAAP purposes, tax benefits associated with federally tax exempt municipal securities are recorded as a benefit in income tax expense. The following table reconciles reported net interest income to net interest income on a tax equivalent basis for the periods presented:
RECONCILIATION OF NET INTEREST INCOME TO NET INTEREST INCOME ON A TAX EQUIVALENT BASIS ---------------------------------------------------------- 2Q03 1Q03 4Q02 3Q02 2Q02 -------- -------- -------- -------- -------- Net interest income....................... $12,558 $12,997 $11,813 $10,443 $ 9,980 Tax equivalent adjustment to net interest income................................. 742 695 661 756 790 ------- ------- ------- ------- ------- Net interest income, tax equivalent basis. $13,300 $13,692 $12,474 $11,199 $10,770 ------- ------- ------- ------- -------
7 PRIVATEBANCORP, INC. KEY FINANCIAL DATA UNAUDITED (DOLLARS IN THOUSANDS EXCEPT PER SHARE DATA)
2Q03 1Q03 4Q02 3Q02 2Q02 ---------- ---------- ----------- ---------- ----------- BALANCE SHEET RATIOS Loans to Deposits (period end)..... 73.83% 74.57% 80.12% 78.50% 80.58% Average interest-earning assets to average interest-bearing liabilities..................... 108.2 107.1 108.2 108.0 107.8 PER SHARE DATA Dividends.......................... $0.04 $0.04 $0.03 $0.03 $0.02 Book value (period end)............ $12.89 $12.29 $11.56 $10.71 $9.71 Tangible book value (period end)... $10.10 $9.49 $8.74 $9.25 $8.25 SHARE PRICE DATA Closing Price (period end)......... $27.27 $22.95 $25.24 $20.38 $20.10 Diluted earnings multiple.......... 12.14 x 12.86 x 15.52 x 13.17 x 15.35 x Book value multiple (period end)... 2.12 x 1.87 x 2.18 x 1.90 x 2.07 x COMMON STOCK INFORMATION Outstanding shares at end of period 7,787,034 7,762,014 7,704,203 7,404,234 7,382,370 NUMBER OF SHARES USED TO COMPUTE: Basic earnings per share........... 7,649,749 7,600,804 7,422,471 7,392,542 7,378,748 Diluted earnings per share......... 8,174,011 8,142,210 7,912,101 7,809,603 7,808,900 CAPITAL RATIOS (PERIOD END): Total equity to total assets....... 5.70% 5.85% 5.77% 5.65% 5.38% Total risk-based capital ratio..... 8.37% 8.30% 8.29% 9.10% 9.37% Tier-1 risk-based capital ratio.... 7.06% 6.99% 6.91% 7.61% 7.84% Leverage ratio..................... 5.23% 5.27% 5.47% 5.91% 6.07%
NOTE: All previously reported share and per share data has been restated to reflect the 3-for-2 stock split which occurred on January 17, 2003. 8 PRIVATEBANCORP, INC. KEY FINANCIAL DATA UNAUDITED (DOLLARS IN THOUSANDS)
2Q03 1Q03 4Q02 3Q02 2Q02 -------- -------- -------- -------- -------- SUMMARY INCOME STATEMENT INTEREST INCOME Interest on fees on loans..................... $15,208 $15,167 $14,043 $13,704 $12,665 Interest on investment securities............. 5,148 5,379 5,507 4,557 4,886 Interest on short-term investments............ 31 25 63 38 8 ------- ------- ------- ------- ------- Total Interest Income...................... 20,387 20,571 19,613 18,299 17,559 INTEREST EXPENSE.............................. 7,829 7,574 7,800 7,856 7,579 ------- ------- ------- ------- ------- NET INTEREST INCOME 12,558 12,997 11,813 10,443 9,980 Provision for loan losses..................... 730 956 914 828 1,609 ------- ------- ------- ------- ------- NET INTEREST INCOME AFTER PROVISION FOR LOAN LOSSES..................................... 11,828 12,041 10,899 9,615 8,371 ------- ------- ------- ------- ------- NON INTEREST INCOME Banking, wealth management services and other income..................................... 3,181 2,701 1,975 1,763 1,802 Net securities gains (losses)................. 2,310 (55) (313) 280 274 Trading losses on interest rate swap.......... (1,054) (230) (282) (662) -- ------- ------- ------- ------- ------- Total non-interest income.................. 4,437 2,416 1,380 1,381 2,076 ------- ------- ------- ------- ------- NON INTEREST EXPENSE Salaries and benefits......................... 5,070 4,778 3,903 3,393 3,469 Amortization of intangibles................... 42 42 -- -- -- Occupancy expense............................. 1,270 1,419 1,319 1,227 1,206 Other operating expenses...................... 3,374 3,180 2,712 2,468 2,438 ------- ------- ------- ------- ------- Total Non-Interest Expense................. 9,756 9,419 7,934 7,088 7,113 ------- ------- ------- ------- ------- Minority Interest Expense..................... 44 38 -- -- -- ------- ------- ------- ------- ------- INCOME BEFORE INCOME TAXES.................... 6,465 5,000 4,345 3,908 3,334 Income tax expense............................ 1,852 1,397 1,125 875 724 ------- ------- ------- ------- ------- NET INCOME.................................... $ 4,613 $ 3,603 $ 3,220 $ 3,033 $ 2,610 ======= ======= ======= ======= =======
9 PRIVATEBANCORP, INC. KEY FINANCIAL DATA UNAUDITED (DOLLARS IN THOUSANDS)
2Q03 1Q03 4Q02 3Q02 2Q02 -------- -------- -------- -------- -------- CREDIT QUALITY KEY RATIOS Net charge-offs (recoveries) to average loans....... 0.07% 0.03% -0.01% 0.04% 0.24% Total non-performing loans to total loans........... 0.26% 0.35% 0.14% 0.33% 0.37% Total non-performing assets to total assets......... 0.16% 0.22% 0.09% 0.21% 0.24% Nonaccrual loans to: Total loans...................................... 0.08% 0.15% 0.08% 0.05% 0.07% Total assets..................................... 0.05% 0.09% 0.05% 0.03% 0.05% Allowance for loan losses to: Total loans...................................... 1.22% 1.22% 1.20% 1.17% 1.14% Non-performing loans............................. 476% 355% 828% 357% 313% Nonaccrual loans................................. 1465% 841% 1547% 2475% 1527% NON-PERFORMING ASSETS: Loans delinquent over 90 days....................... $ 1,849 $ 2,032 $ 650 $ 2,549 $2,518 Nonaccrual loans.................................... 889 1,483 749 430 649 ------- ------- ------- ------- ------ Total non-performing assets...................... $ 2,738 $ 3,515 $ 1,399 $ 2,979 $3,167 ======= ======= ======= ======= ====== NET LOAN CHARGE-OFFS (RECOVERIES): Loans charged off................................... $ 435 $ 81 $ 4 $ 165 $ 515 Recoveries.......................................... 253 11 33 70 25 ------- ------- ------- ------- ------ Net charge-offs (recoveries)........................ $ 182 $ 70 $ (29) $ 95 $ 490 ======= ======= ======= ======= ====== PROVISION FOR LOAN LOSSES........................... $ 730 $ 956 $ 914 $ 828 $1,609 ======= ======= ======= ======= ====== ALLOWANCE FOR LOAN LOSSES SUMMARY Balance at beginning of period...................... $12,471 $11,585 $10,642 $ 9,909 $8,790 Provision........................................... 730 956 914 828 1,609 Net charge-offs (recoveries)........................ 182 70 (29) 95 490 ------- ------- ------- ------- ------ Balance at end of period............................ $13,019 $12,471 $11,585 $10,642 $9,909 ======= ======= ======= ======= ====== NET LOAN CHARGE-OFFS (RECOVERIES): Commercial real estate.............................. -- -- -- -- -- Residential real estate............................. -- -- -- -- -- Commercial.......................................... $ 92 $ 1 $ (2) $ 46 $ 481 Personal............................................ 90 69 (27) 49 9 Home equity......................................... -- -- -- -- -- Construction........................................ -- -- -- -- -- ------- ------- ------- ------- ------ Total net loan charge-offs (recoveries)............. $ 182 $ 70 $ (29) $ 95 $ 490 ======= ======= ======= ======= ======
10 PRIVATEBANCORP, INC. BALANCE SHEETS (DOLLARS IN THOUSANDS)
UNAUDITED UNAUDITED AUDITED UNAUDITED UNAUDITED 6/30/03(1) 3/31/03(1) 12/31/02 09/30/02 06/30/02 ---------- ---------- ---------- ---------- ---------- ASSETS Cash and due from banks........... $ 51,771 $ 46,643 $ 34,529 $ 44,561 $ 39,625 Short-term investments............ 9,145 7,415 258 3,848 75 Investment securities-available for sale....................... 581,743 505,877 487,020 403,192 392,090 Loans held for sale............... 12,282 12,591 14,321 9,062 3,913 Loans............................. 1,067,208 1,018,196 965,641 913,197 865,778 Less: Allowance for loan losses...................... (13,019) (12,471) (11,585) (10,642) (9,909) ---------- ---------- ---------- ---------- ---------- Net loans...................... 1,054,189 1,005,725 954,056 902,555 855,869 ---------- ---------- ---------- ---------- ---------- Premises and equipment, net....... 6,284 6,516 6,851 6,378 6,455 Goodwill.......................... 19,242 19,242 19,199 10,805 10,805 Other assets...................... 25,020 24,986 27,180 23,925 23,176 ---------- ---------- ---------- ---------- ---------- Total Assets................... $1,759,676 $1,628,995 $1,543,414 $1,404,326 $1,332,008 ========== ========== ========== ========== ========== LIABILITIES AND STOCKHOLDERS' EQUITY Non-interest bearing deposits..... $ 110,244 $ 88,243 $ 88,986 $ 80,994 $ 81,421 Interest bearing demand deposits.. 79,397 73,699 64,893 57,575 54,694 Savings and money market deposits. 497,437 476,100 488,941 431,455 412,570 Time deposits..................... 758,512 727,302 562,451 593,303 525,790 ---------- ---------- ---------- ---------- ---------- Total deposits................. 1,445,590 1,365,344 1,205,271 1,163,327 1,074,475 Funds borrowed.................... 170,433 124,933 209,954 125,422 154,499 Long-term debt - Trust Preferred Securities..................... 20,000 20,000 20,000 20,000 20,000 Other liabilities................. 23,313 23,345 19,097 16,296 11,337 ---------- ---------- ---------- ---------- ---------- Total liabilities.............. 1,659,336 1,533,622 1,454,322 1,325,045 1,260,311 Stockholders' equity.............. 100,340 95,373 89,092 79,281 71,697 ---------- ---------- ---------- ---------- ---------- Total Liabilities and Stockholders' Equity........ $1,759,676 $1,628,995 $1,543,414 $1,404,326 $1,332,008 ========== ========== ========== ========== ==========
- ------------------ (1) Reflects the consummation of the acquisition of a controlling interest in Lodestar Investment Counsel on December 30, 2002. 11 PRIVATEBANCORP, INC. AVERAGE QUARTERLY BALANCE SHEETS (UNAUDITED, DOLLARS IN THOUSANDS)
6/30/03 3/31/03 12/31/02 09/30/02 06/30/02 ---------- ---------- ---------- ---------- ---------- ASSETS Cash and due from banks........... $ 40,194 $ 36,159 $ 35,407 $ 35,479 $ 27,114 Short-term investments............ 9,765 11,833 3,015 2,584 1,964 Investment securities-available for sale....................... 543,799 492,443 442,001 393,565 396,807 Loans held for sale............... 10,401 11,178 11,966 6,578 2,330 Loans............................. 1,037,902 993,797 936,016 881,916 815,672 Less: Allowance for loan losses...................... (12,628) (12,091) (11,116) (10,190) (9,081) ---------- ---------- ---------- ---------- ---------- Net loans...................... 1,025,274 981,706 924,900 871,726 806,591 ---------- ---------- ---------- ---------- ---------- Premises and equipment, net....... 6,452 6,757 6,438 6,472 5,271 Goodwill.......................... 19,249 19,756 11,077 10,805 10,805 Other assets...................... 25,758 22,322 23,301 22,766 23,522 ---------- ---------- ---------- ---------- ---------- Total Assets................... $1,680,892 $1,582,154 $1,458,105 $1,349,975 $1,274,404 ========== ========== ========== ========== ========== LIABILITIES AND STOCKHOLDERS' EQUITY Non-interest bearing deposits..... $ 96,582 $ 81,926 $ 84,649 $ 79,530 $ 70,244 Interest bearing demand deposits.. 75,019 65,977 60,177 57,526 57,127 Savings and money market deposits. 487,814 477,748 480,110 417,541 379,726 Time deposits..................... 724,497 637,990 572,308 566,333 523,774 ---------- ---------- ---------- ---------- ---------- Total deposits................. 1,383,912 1,263,641 1,197,244 1,120,930 1,030,871 Funds borrowed.................... 157,485 191,898 144,982 119,714 144,576 Long-term debt - Trust Preferred Securities..................... 20,000 20,000 20,000 20,000 20,000 Other liabilities................. 21,130 12,241 15,959 13,505 9,498 ---------- ---------- ---------- ---------- ---------- Total liabilities.............. 1,582,527 1,487,780 1,378,185 1,274,149 1,204,945 Stockholders' equity.............. 98,365 94,374 79,920 75,826 69,459 ---------- ---------- ---------- ---------- ---------- Total Liabilities and Stockholders' Equity........ $1,680,892 $1,582,154 $1,458,105 $1,349,975 $1,274,404 ========== ========== ========== ========== ==========
12 PRIVATEBANCORP, INC. AVERAGE YEAR-TO-DATE BALANCE SHEETS (UNAUDITED, DOLLARS IN THOUSANDS)
6/30/03 3/31/03 12/31/02 09/30/02 06/30/02 ---------- ---------- ---------- ---------- ---------- ASSETS Cash and due from banks........... $ 38,197 $ 36,159 $ 30,828 $ 29,285 $ 26,137 Short-term investments............ 10,794 11,833 2,822 2,758 2,846 Investment securities-available for sale....................... 518,263 492,443 397,205 382,105 376,282 Loans held for sale............... 10,370 11,178 6,531 4,700 3,745 Loans............................. 1,016,390 993,797 853,243 825,349 796,598 Less: Allowance for loan losses...................... (12,361) (12,091) (9,740) (9,276) (8,812) ---------- ---------- ---------- ---------- ---------- Net loans...................... 1,004,029 981,706 843,503 816,073 787,786 ---------- ---------- ---------- ---------- ---------- Premises and equipment, net....... 6,604 6,757 5,515 5,229 4,667 Goodwill.......................... 19,501 19,756 10,874 10,805 10,805 Other assets...................... 26,018 22,321 23,071 23,001 23,118 ---------- ---------- ---------- ---------- ---------- Total Assets................... $1,633,776 $1,582,153 $1,320,349 $1,273,956 $1,235,386 ========== ========== ========== ========== ========== LIABILITIES AND STOCKHOLDERS' EQUITY Non-interest bearing deposits..... $ 89,431 $ 81,926 $ 74,743 $ 71,385 $ 67,244 Interest bearing demand deposits.. 70,523 65,977 57,242 56,252 55,605 Savings and money market deposits. 482,809 477,748 410,522 387,070 371,584 Time deposits..................... 681,483 637,990 537,297 525,497 504,742 ---------- ---------- ---------- ---------- ---------- Total deposits................. 1,324,246 1,263,641 1,079,804 1,040,204 999,175 Funds borrowed.................... 174,781 191,898 136,292 133,364 140,302 Long-term debt - Trust Preferred Securities..................... 20,000 20,000 20,000 20,000 20,000 Other liabilities................. 18,731 12,318 11,682 10,230 8,553 ---------- ---------- ---------- ---------- ---------- Total liabilities.............. 1,537,758 1,487,857 1,247,778 1,203,798 1,168,030 Stockholders' equity.............. 96,018 94,296 72,571 70,158 67,356 ---------- ---------- ---------- ---------- ---------- Total Liabilities and Stockholders' Equity........ $1,633,776 $1,582,153 $1,320,349 $1,273,956 $1,235,386 ========== ========== ========== ========== ==========
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