-----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, PoZ5i9QzdS02eZjTWiUGv3MRDLkosPF/SPhdPNLxZK1mZxTWu8//k1C/ku3WmfeJ X1s7/vklZ2mQ1cBWI04D/g== 0000913849-04-000020.txt : 20040120 0000913849-04-000020.hdr.sgml : 20040119 20040120092929 ACCESSION NUMBER: 0000913849-04-000020 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 20040120 ITEM INFORMATION: FILED AS OF DATE: 20040120 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: 04531133 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_011404.txt FORM 8-K 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): JANUARY 20, 2004 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 60602 CHICAGO, ILLINOIS (Zip Code) (Address of principal 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 12. RESULTS OF OPERATIONS AND FINANCIAL CONDITION. --------------------------------------------- On January 20, 2004, PrivateBancorp, Inc. (the "Company") announced its earnings results for the quarter ended December 31, 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. Certain supplemental information relating to non-GAAP financial measures reported in the attached press release is included on page 6 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: January 20, 2004 By: /s/ Ralph B. Mandell ------------------------------------- Ralph B. Mandell President and Chief Executive Officer 3 INDEX TO EXHIBITS ----------------- Exhibit - ------- 99.1 Press Release dated January 20, 2004 4 EX-99.1 3 ex99-1_011404.txt PRESS RELEASE EXHIBIT 99.1 [PRIVATEBANCORP LOGO] FOR FURTHER INFORMATION: Dennis Klaeser, CFO PrivateBancorp, Inc. 312-683-7100 For Immediate Release PRIVATEBANCORP REPORTS FOURTH QUARTER EARNINGS Earnings per share up 37 percent over fourth quarter of 2002 Chicago, IL, January 20, 2004 - PrivateBancorp, Inc. (NASDAQ: PVTB) today reported earnings per share of $0.56 per diluted share for the fourth quarter of 2003 compared to fourth quarter of 2002 earnings per diluted share of $0.41, an increase of 37 percent. Net income for the fourth quarter ended December 31, 2003 was $5.7 million, an increase of 78 percent over fourth quarter of 2002 net income of $3.2 million. Net income for the twelve months ended December 31, 2003 was $19.1 million, or $2.12 per diluted share, compared to net income of $11.0 million, or $1.42 per diluted share, for the twelve months ended December 31, 2002, an increase of 49 percent on a per diluted share basis. 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. "Loan growth, an improved net interest margin and increased fee income continued to drive quarterly earnings improvements," said Ralph B. Mandell, Chairman, President and CEO. "Our strong growth to a $2.0 billion asset institution at year-end 2003 is attributable primarily to our stated strategy of investing in people and infrastructure. We continue to attract new clients by delivering a unique banking experience for our clients. With the addition of enhanced service offerings in 2003, we have succeeded in executing our approach to private banking on a larger scale." "Credit quality remains strong. Nonperforming loans represent less than one-tenth of one percent of total loans outstanding. Nonaccrual loans represent less than one hundredth of one percent of total loans," said Mandell. Net interest income totaled $16.8 million in the fourth quarter of 2003, an increase of 42 percent over fourth quarter of 2002 net interest income of $11.8 million, and an increase of 13 percent as compared to third quarter of 2003 net interest income of $14.8 million. Average earning assets during the period were $1.8 billion, compared to $1.4 billion in the prior year quarter, an increase of 29 percent. Average earning assets increased by $137 million, or 8 percent during the fourth quarter of 2003 from $1.7 billion in the third quarter of 2003. Net interest margin (on a tax equivalent basis) was 3.82 percent in the fourth quarter of 2003, up from 3.56 percent in the prior year fourth quarter and up from 3.64 percent in the third quarter of 2003. The margin growth during the quarter reflects an eleven basis point increase in the yields on average earning assets and a six basis point decrease in the costs of average interest-bearing liabilities as 1 compared to the yields and costs incurred in the third quarter of 2003. The primary factor resulting in the increase in our yields on average earning assets from the third quarter was an increase in the dividend rate paid on the Federal Home Loan Bank of Chicago stock from 6.5% during the third quarter of 2003 to 7.0% during the fourth quarter of 2003. During the fourth quarter we received a dividend of $3.7 million related to our investment in The Federal Home Loan Bank of Chicago stock, which totaled $208.5 million at year-end. The decrease in our costs on average interest-bearing liabilities was primarily due to pay-offs of higher-cost borrowings during the third quarter of 2003, which had a greater positive impact on net interest margin during the fourth quarter due to a full quarter of reduced cost of funds relative to the third quarter of 2003. The provision for loan losses was $1.6 million for the fourth quarter of 2003, compared to $914,000 in the prior year fourth quarter and $1.1 million in the third quarter of 2003. Net charge-offs totaled $360,000 in the quarter ended December 31, 2003 versus net recoveries of $29,000 in the prior year quarter and net charge-offs of $246,000 in the third quarter of 2003. The increase in charge-offs was attributable primarily to a single commercial credit. The allowance for loan losses as a percentage of total loans was 1.23 percent as of December 31, 2003 compared to 1.20 percent at December 31, 2002 and is unchanged from 1.23 percent at September 30, 2003. Noninterest income was $3.0 million in the fourth quarter of 2003, reflecting an increase of approximately $1.6 million, or 118 percent, from the fourth quarter of 2002 and down 26 percent, or $1.1 million, from the third quarter of 2003. The increase in noninterest income as compared to the prior year quarter is attributable primarily to increases in wealth management income. Wealth management income totaled $1.9 million for the fourth quarter of 2003, an increase of $1.2 million from the fourth quarter of 2002 and an increase of $146,000 from the third quarter of 2003. The year-over-year increase in wealth management income was primarily due to the inclusion of $826,000 of asset management revenue from Lodestar Investment Counsel, LLC, which was acquired by the Company during the fourth quarter of 2002. Wealth management assets under management were $1.5 billion at December 31, 2003 compared to $1.2 billion at December 31, 2002, and up $174.0 million from $1.3 billion at September 30, 2003. Growth in assets under management during the quarter reflects the impact of net new business generated and the continued rebound in the equity markets. Sales of residential real estate loans generated $451,000 of income during the fourth quarter of 2003, a decrease of $370,000 from the fourth quarter of 2002 and a decrease of $753,000 from the third quarter of 2003. Demand for residential real estate loans subsided in the fourth quarter of 2003 as mortgage refinancings have slowed as a result of increases in mortgage rates. The increase in noninterest income was aided by a gain in the fourth quarter of 2003 of approximately $280,000 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 resulted in a gain because of the increase in market rates of interest during the fourth quarter of 2003. The interest rate swap resulted in a loss of $282,000 during the fourth quarter of 2002 and a gain of $765,000 during the third quarter of 2003. During the fourth quarter of 2003, we recognized investment securities losses of $163,000 versus losses of $313,000 during the fourth quarter of 2002 and losses of $333,000 during the third quarter of 2003. Noninterest expense increased to $10.4 million in the fourth quarter of 2003 from $7.9 million in the fourth quarter of 2002 and down 2 percent as compared to $10.6 million in the third quarter of 2003. The 32 percent increase year-over-year in noninterest expense is attributable to increased costs associated with the greater scope of operations, including the full year's financial results in Lodestar. 2 Our full-time equivalent employees increased to 219 at December 31, 2003 from 184 a year ago and 201 at the end of third quarter of 2003. Our efficiency ratio of 50.1 percent in the fourth quarter of 2003 improved from 57.3 percent in the prior year quarter and 53.9 percent in the third quarter of 2003. The improvement in our efficiency ratio during the quarter, as compared to the third quarter of 2003, was the result of continued growth in net interest income primarily resulting from both the higher FHLB dividend and strong loan portfolio growth. Deposits increased by 5 percent or $71.3 million during the fourth quarter to $1.55 billion, compared to total deposits of $1.48 billion as of September 30, 2003. For the full year 2003 deposits increased by 28 percent or $342.1 million from $1.21 billion at December 31, 2002. Brokered deposits were $447.9 million at December 31, 2003, a decrease of 1 percent or $6.3 million since September 30, 2003 and an increase of 60 percent or $167.6 million since December 31, 2002. Loan growth for the fourth quarter of 2003 was strong. Total loans as of December 31, 2003 increased by 8 percent, or $93.0 million, to $1.22 billion as compared to loans of $1.13 billion at September 30, 2003. Loans increased 27 percent at December 31, 2003 from the $965.6 million posted at December 31, 2002. At December 31, 2003, nonperforming loans as a percentage of total loans were 0.09 percent, versus 0.17 percent at September 30, 2003 and 0.14 percent at December 31, 2002. At December 31, 2003, nonaccrual loans as a percentage of total loans were 0.003 percent, versus 0.05 percent at September 30, 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 $2.0 billion at December 31, 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.privatebancorp.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 in the event of a prolonged economic downturn in the greater Chicago and St. Louis metropolitan areas, legislative or regulatory changes, adverse developments in or changes in the composition of the Company's loan or investment portfolios, competition and the potential 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. ### 3
PRIVATEBANCORP, INC. CONSOLIDATED STATEMENTS OF INCOME (DOLLARS IN THOUSANDS EXCEPT PER SHARE DATA) THREE MONTHS ENDED TWELVE MONTHS ENDED DECEMBER 31, DECEMBER 31, -------------------------- -------------------------- 2003 2002 2003 2002 ------------ ------------- ------------ ------------- UNAUDITED UNAUDITED UNAUDITED UNAUDITED INTEREST INCOME Interest and fees on loans................................. $ 16,588 $ 14,043 $ 62,793 $ 52,560 Interest on investment securities.......................... 7,773 5,507 24,633 19,156 Interest on short-term investments......................... 6 63 68 126 ----------- ------------ ----------- ------------ Total interest income................................... 24,367 19,613 87,494 71,842 ----------- ------------ ----------- ------------ INTEREST EXPENSE Interest on deposits....................................... 6,140 5,957 23,912 23,978 Interest on borrowings..................................... 970 1,358 4,502 5,325 Interest on long-term debt - Trust Preferred Securities.... 485 485 1,940 1,939 ----------- ------------ ----------- ------------ Total interest expense.................................. 7,595 7,800 30,354 31,242 ----------- ------------ ----------- ------------ NET INTEREST INCOME 16,772 11,813 57,140 40,600 Provision for loan losses.................................. 1,595 914 4,373 3,862 ----------- ------------ ----------- ------------ Net interest income after provision........................ 15,177 10,899 52,767 36,738 ----------- ------------ ----------- ------------ NON-INTEREST INCOME Banking, wealth management services and other income....... 2,889 1,975 12,428 7,081 Net securities (losses) gains.............................. (163) (313) 1,759 11 Gains (losses) on interest rate swap....................... 280 (282) (239) (943) ----------- ------------ ----------- ------------ Total non-interest income.................................. 3,006 1,380 13,948 6,149 ----------- ------------ ----------- ------------ NON-INTEREST EXPENSE Salaries and benefits...................................... 5,670 3,903 20,856 13,979 Other operating expenses................................... 4,654 4,031 19,120 14,628 Amortization of intangibles................................ 42 -- 168 -- ----------- ------------ ----------- ------------ Total non-interest expense................................. 10,366 7,934 40,144 28,607 ----------- ------------ ----------- ------------ Minority interest expense.................................. 52 -- 193 -- ----------- ------------ ----------- ------------ Income before income taxes................................. 7,765 4,345 26,378 14,280 ----------- ------------ ----------- ------------ Income tax expense......................................... 2,042 1,125 7,309 3,273 ----------- ------------ ----------- ------------ NET INCOME................................................. $ 5,723 $ 3,220 $ 19,069 $ 11,007 =========== ============ =========== ============ WEIGHTED AVERAGE SHARES O/S................................ 9,660,655 7,422,471 8,487,204 7,370,631 DILUTED AVERAGE SHARES O/S................................. 10,290,510 7,912,101 8,990,546 7,775,481 EARNINGS PER SHARE Basic...................................................... $ 0.59 $ 0.43 $ 2.25 $ 1.49 Diluted.................................................... $ 0.56 $ 0.41 $ 2.12 $ 1.42 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.
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PRIVATEBANCORP, INC. CONSOLIDATED BALANCE SHEETS (DOLLARS IN THOUSANDS EXCEPT PER SHARE DATA) 12/31/03 09/30/03 12/31/02 ------------- ------------- ------------- UNAUDITED AUDITED ASSETS Cash and due from banks..................................... $ 49,115 $ 33,551 $ 34,529 Short-term investments...................................... 985 1,999 258 Investment securities - available for sale.................. 669,262 647,433 487,020 Loans held for sale......................................... 4,420 5,554 14,321 Loans....................................................... 1,224,657 1,131,706 965,641 Allowance for loan losses................................... (15,100) (13,865) (11,585) ------------ ------------ ------------ Net loans................................................ 1,209,557 1,117,841 954,056 Premises and equipment, net................................. 6,233 6,334 6,851 Goodwill.................................................... 19,242 19,242 19,199 Other assets................................................ 26,109 25,149 27,180 ------------ ------------ ------------ Total Assets............................................. $ 1,984,923 $ 1,857,103 $ 1,543,414 ============ ============ ============ LIABILITIES Non-interest bearing deposits............................... $ 135,110 $ 125,505 $ 88,986 Interest bearing deposits................................... 1,412,249 1,350,542 1,116,285 ------------ ------------ ------------ Total deposits........................................... 1,547,359 1,476,047 1,205,271 ------------ ------------ ------------ Funds borrowed.............................................. 219,563 164,491 209,954 Long-term debt - Trust Preferred Securities................. 20,000 20,000 20,000 Other liabilities........................................... 31,045 35,460 19,097 ------------ ------------ ------------ Total Liabilities........................................ 1,817,967 1,695,998 1,454,322 ------------ ------------ ------------ STOCKHOLDERS' EQUITY Common stock and additional paid-in-capital................. 113,650 113,512 53,071 Retained earnings........................................... 46,193 40,114 27,784 Accumulated other comprehensive income...................... 9,909 10,420 8,826 Deferred compensation....................................... (2,796) (2,941) (589) ------------ ------------ ------------ Total Stockholders' Equity.................................. 166,956 161,105 89,092 ------------ ------------ ------------ TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY.................. $ 1,984,923 $ 1,857,103 $ 1,543,414 ============ ============ ============ BOOK VALUE PER SHARE........................................ $ 16.94 $ 16.37 $ 11.56 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.
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PRIVATEBANCORP, INC. KEY FINANCIAL DATA UNAUDITED (DOLLARS IN THOUSANDS EXCEPT PER SHARE DATA) 4Q03 3Q03 2Q03 1Q03 4Q02 -------- -------- -------- -------- -------- KEY STATISTICS Net income................................... $ 5,723 $ 5,130 $ 4,613 $ 3,603 $ 3,220 Basic earnings per share..................... $ 0.59 $ 0.57 $ 0.60 $ 0.47 $ 0.43 Diluted earnings per share................... $ 0.56 $ 0.54 $ 0.56 $ 0.44 $ 0.41 Return on average total assets............... 1.19% 1.15% 1.10% 0.92% 0.88% Return on average total equity............... 14.03% 14.57% 18.81% 15.49% 15.99% Dividend payout ratio........................ 6.89% 7.67% 6.75% 8.62% 6.14% Non-interest income to average assets........ 0.63% 0.92% 1.06% 0.62% 0.38% Non-interest expense to average assets....... 2.16% 2.38% 2.33% 2.41% 2.16% Net overhead ratio(1)........................ 1.53% 1.46% 1.27% 1.80% 1.78% Efficiency ratio(2).......................... 50.1% 53.9% 55.0% 58.5% 57.3% Net interest margin(3)....................... 3.82% 3.64% 3.33% 3.68% 3.56% Yield on average earning assets.............. 5.48% 5.37% 5.30% 5.73% 5.79% Cost of average interest-bearing liabilities. 1.88% 1.94% 2.14% 2.20% 2.42% Net interest spread(4)....................... 3.60% 3.43% 3.16% 3.53% 3.37% Tax equivalent adjustment to net interest income(5)................................. $ 925 $ 772 $ 742 $ 695 $ 661 - ------------------ 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. (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 -------------------------------------------------------- 4Q03 3Q03 2Q03 1Q03 4Q02 ------- ------- ------- ------- ------- Net interest income....................... $16,772 $14,813 $12,558 $12,997 $11,813 Tax equivalent adjustment to net interest income................................. 925 772 742 695 661 ------- ------- ------- ------- ------- Net interest income, tax equivalent basis. $17,697 $15,585 $13,300 $13,692 $12,474 ======= ======= ======= ======= =======
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PRIVATEBANCORP, INC. KEY FINANCIAL DATA UNAUDITED (DOLLARS IN THOUSANDS EXCEPT PER SHARE DATA) 4Q03 3Q03 2Q03 1Q03 4Q02 ----------- ---------- ---------- ---------- ---------- BALANCE SHEET RATIOS Loans to Deposits (period end)... 79.14% 76.67% 73.83% 74.57% 80.12% Average interest-earning assets to average interest-bearing liabilities................... 113.9 112.4 108.2 107.1 108.2 PER SHARE DATA Dividends........................ $0.04 $0.04 $0.04 $0.04 $0.03 Book value (period end).......... $16.94 $16.37 $12.89 $12.29 $11.56 Tangible book value (period end)(1)....................... $14.75 $14.17 $10.10 $9.49 $8.74 SHARE PRICE DATA Closing price (period end)....... $45.29 $33.11 $27.27 $22.95 $25.24 Diluted earnings multiple(2)..... 20.38 x 15.45 x 12.14 x 12.86 x 15.52 x Book value multiple (period end). 2.67 x 2.02 x 2.12 x 1.87 x 2.18 x COMMON STOCK INFORMATION Outstanding shares at end of period........................ 9,853,664 9,840,034 7,787,034 7,762,014 7,704,203 NUMBER OF SHARES USED TO COMPUTE: Basic earnings per share......... 9,660,655 9,009,234 7,649,749 7,600,804 7,422,471 Diluted earnings per share....... 10,290,510 9,574,802 8,174,011 8,142,210 7,912,101 CAPITAL RATIOS (PERIOD END)(3): Total equity to total assets..... 8.41% 8.68% 5.70% 5.85% 5.77% Total risk-based capital ratio... 12.71% 12.40% 8.37% 8.30% 8.29% Tier-1 risk-based capital ratio.. 11.59% 11.34% 7.06% 6.99% 6.91% Leverage ratio................... 8.25% 8.52% 5.23% 5.27% 5.47% - ------------------ 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. (1) Tangible book value is total capital less goodwill and other intangibles divided by outstanding shares at end of period. (2) Period end closing stock price divided by annualized quarterly earnings for the quarter then ended. (3) Capital ratios presented in the press release are based on preliminary data.
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PRIVATEBANCORP, INC. KEY FINANCIAL DATA UNAUDITED (DOLLARS IN THOUSANDS) 4Q03 3Q03 2Q03 1Q03 4Q02 ------- ------- ------- ------- ------- SUMMARY INCOME STATEMENT INTEREST INCOME Interest on fees on loans..................... $16,588 $15,830 $15,208 $15,167 $14,043 Interest on investment securities............. 7,773 6,333 5,148 5,379 5,507 Interest on short-term investments............ 6 6 31 25 63 ------- ------- ------- ------- ------- Total interest income...................... 24,367 22,169 20,387 20,571 19,613 INTEREST EXPENSE.............................. 7,595 7,356 7,829 7,574 7,800 ------- ------- ------- ------- ------- NET INTEREST INCOME 16,772 14,813 12,558 12,997 11,813 Provision for loan losses..................... 1,595 1,092 730 956 914 ------- ------- ------- ------- ------- NET INTEREST INCOME AFTER PROVISION FOR LOAN LOSSES..................................... 15,177 13,721 11,828 12,041 10,899 ------- ------- ------- ------- ------- NON INTEREST INCOME Banking, wealth management services and other income..................................... 2,889 3,657 3,181 2,701 1,975 Net securities (losses) gains................. (163) (333) 2,310 (55) (313) Gains (losses) on interest rate swap.......... 280 765 (1,054) (230) (282) ------- ------- ------- ------- ------- Total non-interest income.................. 3,006 4,089 4,437 2,416 1,380 ------- ------- ------- ------- ------- NON INTEREST EXPENSE Salaries and benefits......................... 5,670 5,338 5,070 4,778 3,903 Amortization of intangible.................... 42 42 42 42 -- Occupancy expense............................. 1,472 1,403 1,270 1,419 1,319 Other operating expenses...................... 3,182 3,820 3,374 3,180 2,712 ------- ------- ------- ------- ------- Total Non-Interest Expense................. 10,366 10,603 9,756 9,419 7,934 ------- ------- ------- ------- ------- Minority Interest Expense..................... 52 59 44 38 -- ------- ------- ------- ------- ------- INCOME BEFORE INCOME TAXES.................... 7,765 7,148 6,465 5,000 4,345 Income tax expense............................ 2,042 2,018 1,852 1,397 1,125 ------- ------- ------- ------- ------- NET INCOME.................................... $ 5,723 $ 5,130 $ 4,613 $ 3,603 $ 3,220 ======= ======= ======= ======= =======
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PRIVATEBANCORP, INC. KEY FINANCIAL DATA UNAUDITED (DOLLARS IN THOUSANDS) 4Q03 3Q03 2Q03 1Q03 4Q02 --------- --------- --------- --------- --------- CREDIT QUALITY KEY RATIOS Net charge-offs (recoveries) to average loans....... 0.12% 0.09% 0.07% 0.03% -0.01% Total non-performing loans to total loans........... 0.09% 0.17% 0.26% 0.35% 0.14% Total non-performing assets to total assets......... 0.06% 0.10% 0.16% 0.22% 0.09% Nonaccrual loans to: Total loans...................................... 0.00% 0.05% 0.08% 0.15% 0.08% Total assets..................................... 0.00% 0.03% 0.05% 0.09% 0.05% Allowance for loan losses to: Total loans...................................... 1.23% 1.23% 1.22% 1.22% 1.20% Non-performing loans............................. 1343% 723% 476% 355% 828% Nonaccrual loans................................. 41369% 2681% 1465% 841% 1547% NON-PERFORMING ASSETS: Loans delinquent over 90 days....................... $ 1,088 $ 1,401 $ 1,849 $ 2,032 $ 650 Nonaccrual loans.................................... 36 517 889 1,483 749 -------- -------- -------- -------- -------- Total non-performing assets...................... $ 1,124 $ 1,918 $ 2,738 $ 3,515 $ 1,399 ======== ======== ======== ======== ======== NET LOAN CHARGE-OFFS (RECOVERIES): Loans charged off................................... $ 367 $ 335 $ 435 $ 81 $ 4 Recoveries.......................................... 7 89 253 11 33 -------- -------- -------- -------- -------- Net charge-offs (recoveries)........................ $ 360 $ 246 $ 182 $ 70 $ (29) ======== ======== ======== ======== ======== PROVISION FOR LOAN LOSSES........................... $ 1,595 $ 1,092 $ 730 $ 956 $ 914 ======== ======== ======== ======== ======== ALLOWANCE FOR LOAN LOSSES SUMMARY Balance at beginning of period...................... $ 13,865 $ 13,019 $ 12,471 $ 11,585 $ 10,642 Provision........................................... 1,595 1,092 730 956 914 Net charge-offs (recoveries)........................ 360 246 182 70 (29) -------- -------- -------- -------- -------- Balance at end of period............................ $ 15,100 $ 13,865 $ 13,019 $ 12,471 $ 11,585 ======== ======== ======== ======== ======== NET LOAN CHARGE-OFFS (RECOVERIES): Commercial real estate.............................. -- -- -- -- -- Residential real estate............................. -- -- -- -- -- Commercial.......................................... $ 312 $ 327 $ 92 $ 1 $ (2) Personal............................................ 48 (81) 90 69 (27) Home equity......................................... -- -- -- -- -- Construction........................................ -- -- -- -- -- -------- -------- -------- -------- -------- Total net loan charge-offs (recoveries)............. $ 360 $ 246 $ 182 $ 70 $ (29) ======== ======== ======== ======== ========
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PRIVATEBANCORP, INC. BALANCE SHEETS (DOLLARS IN THOUSANDS) AUDITED UNAUDITED UNAUDITED UNAUDITED AUDITED 12/31/03 09/30/03 6/30/03 3/31/03 12/31/02 ----------- ----------- ----------- ----------- ----------- ASSETS Cash and due from banks........... $ 49,115 $ 33,551 $ 51,771 $ 46,643 $ 34,529 Short-term investments............ 985 1,999 9,145 7,415 258 Investment securities-available for sale....................... 669,262 647,433 581,743 505,877 487,020 Loans held for sale............... 4,420 5,554 12,570 12,591 14,321 Loans............................. 1,224,657 1,131,706 1,066,919 1,018,196 965,641 Less: Allowance for loan losses...................... (15,100) (13,865) (13,019) (12,471) (11,585) ----------- ----------- ----------- ----------- ----------- Net loans...................... 1,209,557 1,117,841 1,054,189 1,005,725 954,056 ----------- ----------- ----------- ----------- ----------- Premises and equipment, net....... 6,233 6,334 6,284 6,516 6,851 Goodwill.......................... 19,242 19,242 19,242 19,242 19,199 Other assets...................... 26,109 25,149 25,020 24,986 27,180 ----------- ----------- ----------- ----------- ----------- Total Assets................... $ 1,984,923 $ 1,857,103 $ 1,759,676 $ 1,628,995 $ 1,543,414 =========== =========== =========== =========== =========== LIABILITIES AND STOCKHOLDERS' EQUITY Non-interest bearing deposits..... $ 135,110 $ 125,505 $ 110,244 $ 88,243 $ 88,986 Interest bearing demand deposits.. 85,083 71,958 79,397 73,699 64,893 Savings and money market deposits. 562,234 484,662 497,437 476,100 488,941 Time deposits..................... 764,932 793,922 758,512 727,302 562,451 ----------- ----------- ----------- ----------- ----------- Total deposits................. 1,547,359 1,476,047 1,445,590 1,365,344 1,205,271 Funds borrowed.................... 219,563 164,491 170,433 124,933 209,954 Long-term debt - Trust Preferred Securities..................... 20,000 20,000 20,000 20,000 20,000 Other liabilities................. 31,045 35,460 23,313 23,345 19,097 ----------- ----------- ----------- ----------- ----------- Total liabilities.............. 1,817,967 1,695,998 1,659,336 1,533,622 1,454,322 Stockholders' equity.............. 166,956 161,105 100,340 95,373 89,092 ----------- ----------- ----------- ----------- ----------- Total Liabilities and Stockholders' Equity........ $ 1,984,923 $ 1,857,103 $ 1,759,676 $ 1,628,995 $ 1,543,414 =========== =========== =========== =========== ===========
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PRIVATEBANCORP, INC. AVERAGE QUARTERLY BALANCE SHEETS (UNAUDITED, DOLLARS IN THOUSANDS) 12/31/03 09/30/03 6/30/03 3/31/03 12/31/02 ------------ ------------ ------------ ------------ ------------ ASSETS Cash and due from banks........... $ 33,812 $ 36,424 $ 40,194 $ 36,159 $ 35,407 Short-term investments............ 1,597 1,480 9,765 11,833 3,015 Investment securities-available for sale....................... 652,463 589,624 543,799 492,443 442,001 Loans held for sale............... 4,481 11,228 10,401 11,178 11,966 Loans............................. 1,175,718 1,091,982 1,037,902 993,797 936,016 Less: Allowance for loan losses...................... (14,332) (13,358) (12,628) (12,091) (11,116) ----------- ----------- ----------- ----------- ----------- Net loans...................... 1,161,386 1,078,624 1,025,274 981,706 924,900 ----------- ----------- ----------- ----------- ----------- Premises and equipment, net....... 6,332 6,376 6,452 6,757 6,438 Goodwill.......................... 19,233 19,275 19,249 19,756 11,077 Other assets...................... 25,079 27,774 25,758 22,322 23,301 ----------- ----------- ----------- ----------- ----------- Total Assets................... $ 1,904,383 $ 1,770,805 $ 1,680,892 $ 1,582,154 $ 1,458,105 =========== =========== =========== =========== =========== LIABILITIES AND STOCKHOLDERS' EQUITY Non-interest bearing deposits..... $ 122,372 $ 111,010 $ 96,582 $ 81,926 $ 84,649 Interest bearing demand deposits.. 82,293 76,223 75,019 65,977 60,177 Savings and money market deposits. 541,432 478,659 487,814 477,748 480,110 Time deposits..................... 772,564 755,081 724,497 637,990 572,308 ----------- ----------- ----------- ----------- ----------- Total deposits................. 1,518,661 1,420,973 1,383,912 1,263,641 1,197,244 Funds borrowed.................... 183,290 169,088 157,485 191,898 144,982 Long-term debt - Trust Preferred Securities..................... 20,000 20,000 20,000 20,000 20,000 Other liabilities................. 20,619 21,093 21,130 12,241 15,959 ----------- ----------- ----------- ----------- ----------- Total liabilities.............. 1,742,570 1,631,154 1,582,527 1,487,780 1,378,185 Stockholders' equity.............. 161,813 139,651 98,365 94,374 79,920 ----------- ----------- ----------- ----------- ----------- Total Liabilities and Stockholders' Equity........ $ 1,904,383 $ 1,770,805 $ 1,680,892 $ 1,582,154 $ 1,458,105 =========== =========== =========== =========== ===========
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PRIVATEBANCORP, INC. AVERAGE YEAR-TO-DATE BALANCE SHEETS (UNAUDITED, DOLLARS IN THOUSANDS) 12/31/03 09/30/03 6/30/03 3/31/03 12/31/02 ------------ ------------ ------------ ------------ ------------ ASSETS Cash and due from banks........... $ 36,548 $ 37,598 $ 38,197 $ 36,159 $ 30,828 Short-term investments............ 6,348 7,696 10,794 11,833 2,822 Investment securities-available for sale....................... 569,718 541,833 518,263 492,443 397,205 Loans held for sale............... 9,359 11,003 10,370 11,178 6,531 Loans............................. 1,075,344 1,041,520 1,016,390 993,797 853,243 Less: Allowance for loan losses...................... (13,109) (12,697) (12,361) (12,091) (9,740) ----------- ----------- ----------- ----------- ----------- Net loans...................... 1,062,235 1,028,823 1,004,029 981,706 843,503 ----------- ----------- ----------- ----------- ----------- Premises and equipment, net....... 6,478 6,527 6,604 6,757 5,515 Goodwill.......................... 19,353 19,416 19,501 19,756 10,874 Other assets...................... 24,531 26,482 26,018 22,321 23,071 ----------- ----------- ----------- ----------- ----------- Total Assets................... $ 1,734,570 $ 1,679,378 $ 1,633,776 $ 1,582,153 $ 1,320,349 =========== =========== =========== =========== =========== LIABILITIES AND STOCKHOLDERS' EQUITY Non-interest bearing deposits..... $ 103,073 $ 96,246 $ 89,431 $ 81,926 $ 74,743 Interest bearing demand deposits.. 74,926 72,444 70,523 65,977 57,242 Savings and money market deposits. 496,607 480,717 482,809 477,748 410,522 Time deposits..................... 722,990 706,285 681,483 637,990 537,297 ----------- ----------- ----------- ----------- ----------- Total deposits................. 1,397,596 1,355,692 1,324,246 1,263,641 1,079,804 Funds borrowed.................... 175,451 172,862 174,781 191,898 136,292 Long-term debt - Trust Preferred Securities..................... 20,000 20,000 20,000 20,000 20,000 Other liabilities................. 17,924 19,016 18,731 12,318 11,682 ----------- ----------- ----------- ----------- ----------- Total liabilities.............. 1,610,971 1,567,570 1,537,758 1,487,857 1,247,778 Stockholders' equity.............. 123,599 111,808 96,018 94,296 72,571 ----------- ----------- ----------- ----------- ----------- Total Liabilities and Stockholders' Equity........ $ 1,734,570 $ 1,679,378 $ 1,633,776 $ 1,582,153 $ 1,320,349 =========== =========== =========== =========== ===========
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