Fourth Quarter 2009 Earnings Release

EX-99.1 2 dex991.htm FOURTH QUARTER 2009 EARNINGS RELEASE Fourth Quarter 2009 Earnings Release

Exhibit 99.1

LOGO

For further information:

Media Contact:

Amy Yuhn

Director of Communications

312-564-1378

ayuhn@theprivatebank.com

Investor Relations Contact:

Katie Manzel

Investor Relations Officer

312-564-6818

kmanzel@theprivatebank.com

For Immediate Release

PrivateBancorp Reports Fourth Quarter and Full Year 2009 Results

Operating profit increased and capital position strengthened; credit quality continues to impact performance

CHICAGO, January 25, 2010 – PrivateBancorp, Inc. (NASDAQ: PVTB) today reported a net loss of $18.6 million, or $0.30 per diluted share, for the fourth quarter ended December 31, 2009, compared with a net loss of $62.8 million, or $1.98 per diluted share, for the fourth quarter 2008. For the 12 months ended December 31, 2009, the net loss was $42.5 million, or $0.95 per diluted share, compared to a net loss of $93.5 million, or $3.16 per diluted share, for the prior year period.

“While the economic environment in 2009 remained difficult, our business fundamentals are strong and the significant investments we’ve made in people and infrastructure are driving ongoing momentum in our operating profit,” said Larry D. Richman, President and Chief Executive Officer, PrivateBancorp, Inc. “Throughout the year we have strengthened our risk management process. The credit environment in the second half of the year caused us to put even greater focus on asset quality management, and in the fourth quarter we redeployed a number of our bankers to leverage their specific industry expertise as we tackle the challenges in our credit portfolio.

“While we are not out of the woods as it relates to stress on our credit portfolio, our combination of strong core performance, attention to rigorous risk management and balance sheet strength position us well as we move into 2010,” Richman continued. “Over the long-term, the continued growth in client relationships will lead to higher net revenue and deposits and improvement in our net interest margin. This, along with the increased efficiency of our operations, will facilitate earnings growth.”

4^th Quarter Results:

•

Growth in non-performing assets slowed to 10 percent quarter-over-quarter and non-performing assets were $436.9 million, compared to $396.6 million in the third quarter. Provision for loan losses was $69.5 million and net charge-offs were $40.6 million, resulting in an increased allowance for loan losses of $221.7 million or 2.44 percent of total loans.

•

Net revenue grew 13.5 percent over third quarter to $114.8 million and net interest margin increased to 3.48 percent, up 39 basis points over third quarter. Operating profit increased 4.4 percent to $46.3 million, up from $44.3 million in third quarter.

•

Client deposits grew 4 percent from the third quarter, including an 18 percent increase in demand deposits, while loans remained flat due to decreased borrowings by existing clients and ongoing selectivity in new business development.

•

Capital position was strengthened and total risk-based capital ratio was 14.70 percent, Tier 1 capital ratio was 12.33 percent and tangible common equity ratio was 7.41 percent.

Credit Quality

Credit quality continued to be impacted in the fourth quarter by ongoing weakness in the overall economy and was largely influenced by poor commercial real estate sector performance. However, growth in fourth quarter non-performing assets was consistent with management’s expectations. Although credit trends in the commercial real estate sector will continue to be uneven, the Company currently anticipates a first-quarter growth rate in non-performing assets to be generally in line with the fourth quarter.

The fourth quarter 2009 provision for loan losses was $69.5 million, compared to $119.3 million in the fourth quarter 2008 and $90.0 million in the third quarter 2009.

The allowance for loan losses as a percentage of total loans was 2.44 percent at December 31, 2009, compared with 1.40 percent at December 31, 2008, and 2.14 percent at September 30, 2009. Allowance for loan losses as a percentage of non-performing loans was 56 percent in the fourth quarter 2009, compared to 85 percent in the fourth quarter 2008 and 54 percent in the third quarter 2009. Charge-offs were $41.5 million for the quarter ended December 31, 2009, offset by recoveries of $874,000, and $40.1 million for the quarter ended September 30, 2009, offset by recoveries of $2.8 million. Charge-offs for the quarter ended December 31, 2008, were $109.5 million, offset by recoveries of $658,000. Approximately $13.0 million of fourth-quarter 2009 net charge-offs were commercial real estate loans and $14.2 million were construction loans.

The Company had $436.9 million in total non-performing assets at December 31, 2009, compared to $155.7 million at December 31, 2008, and $396.6 million at September 30, 2009, largely due to the ongoing deterioration in the Company’s commercial real estate portfolio. Approximately 72 percent of non-accrual loans at December 31, 2009, were commercial real estate or construction loans. Non-performing assets to total assets were 3.62 percent at December 31, 2009, compared to 1.55 percent at December 31, 2008, and 3.28 percent at September 30, 2009.

Credit quality results exclude $502.0 million in covered assets as of December 31, 2009, referring to certain assets acquired as a result of the Founders Bank transaction that are subject to a loss-sharing agreement with the FDIC.

Balance Sheet

Total assets increased to $12.1 billion at December 31, 2009, from $10.0 billion at December 31, 2008, and remained flat as compared to September 30, 2009. Total loans increased to $9.1 billion at December 31, 2009, from $8.0 billion at December 31, 2008, and $9.0 billion at September 30, 2009. Consistent with overall economic conditions, the Company experienced a decrease in borrowings from existing clients and continued to engage in selective loan growth. Commercial loans were 51 percent of the Company’s total loans at the end of the fourth quarter 2009, compared with 50 percent of total loans at December 31, 2008, and 51 percent of total loans at September 30, 2009. Commercial real estate loans were 31 percent of total loans at the end of the fourth quarter 2009, compared to 30 percent of total loans at the end of the fourth quarter 2008 and up from 29 percent at the end of the third quarter 2009. The small increase in commercial real estate loans as a percentage of total loans in the fourth quarter 2009 is the result of construction loans converting to commercial real estate mortgages.

Total deposits were $9.9 billion at December 31, 2009, compared to $8.0 billion at December 31, 2008, and $9.6 billion at September 30, 2009. Client deposits increased to $9.3 billion at December 31, 2009, from $6.0 billion at December 31, 2008, and $8.9 billion at September 30, 2009. Client deposits at December 31, 2009, include $1.8 billion in non-interest bearing deposits. Brokered deposits (excluding $979.7 million in client CDARS^® deposits) were 6 percent of total deposits in the fourth quarter 2009, a decrease from 25 percent of total deposits as of December 31, 2008, and 7 percent in the third quarter 2009. The significant decrease in brokered deposits year-over-year reflects the Company’s strategy to focus on growing client deposits.

Funds borrowed, which include federal funds purchased, FHLB advances, trust preferred securities, borrowings under the Company’s credit facilities, and convertible senior notes, was $748.0 million at December 31, 2009, down from $1.3 billion at December 31, 2008, and September 30, 2009, reflecting an improvement in funding mix.

The Company’s investment securities portfolio was $1.6 billion at December 31, 2009, compared to $1.5 billion at December 31, 2008, and $1.7 billion at September 30, 2009. Net unrealized gains were $44.8 million, compared to $44.2 million at the end of the fourth quarter 2008, and $61.5 million at the end of the third quarter 2009. The decrease in net unrealized gains during the fourth quarter was largely driven by the interest rate environment. The Company’s securities portfolio is primarily composed of U.S. government agency backed mortgage pools, agency collateralized mortgage obligations, and investment grade municipal bonds.

Operating Performance

Operating profit (the sum of net interest income on a tax equivalent basis and non-interest income less non-interest expense) was $46.3 million in the fourth quarter 2009, up from $16.8 million in the fourth quarter 2008, and $44.3 million in the third quarter 2009. Net revenue grew to $114.8 million in the fourth quarter 2009, from $71.7 million in the fourth quarter 2008, and $101.2 million in the third quarter 2009. Net interest income improved to $99.6 million in the fourth quarter 2009, up from $59.1 million for the fourth quarter 2008, and from $87.4 million in the third quarter 2009. Net interest margin (on a tax equivalent basis) was 3.48 percent for the fourth quarter 2009, compared to 2.62 percent for the fourth quarter 2008, and 3.09 percent in the third quarter 2009. Net interest margin continued to improve on the repricing of deposits, an increase in demand deposits, improved loan pricing, and the contribution from the former Founders Bank business.

Non-interest income was $14.3 million in the fourth quarter 2009, compared to $11.6 million in the fourth quarter 2008, and $12.9 million in the third quarter 2009. The increase in non-interest income during the fourth quarter was primarily due to capital markets products and mortgage banking contributions. Capital markets activities for the fourth quarter 2009 resulted in revenue of $2.4 million, including a $796,000 credit valuation adjustment, as compared to $4.8 million in the fourth quarter 2008, and a negative revenue position of $322,000 in the third quarter 2009, including a $2.4 million negative credit valuation adjustment. Mortgage banking income was $2.2 million in the fourth quarter 2009, compared to $622,000 for the fourth quarter 2008, and $1.8 million in the third quarter 2009. Treasury management income was $3.4 million in the fourth quarter 2009, compared to $1.1 million in the fourth quarter 2008, and $3.1 million in the third quarter 2009. Banking and other services income was $1.9 million in the fourth quarter 2009, including a $4.2 million loss on loan dispositions, compared to $1.3 million in the fourth quarter 2008, and $4.1 million in the third quarter 2009.

The PrivateWealth Group’s fee revenue was $4.1 million in the fourth quarter 2009, compared to $4.1 million both in the fourth quarter 2008 and in the third quarter 2009. The PrivateWealth Group’s assets under management at December 31, 2009, were $4.0 billion, compared with $3.3 billion at December 31, 2008, and $4.0 billion at September 30, 2009.

Expenses

Non-interest expense was $68.5 million in the fourth quarter. This compares to $54.9 million in the fourth quarter 2008 and $56.8 million in the third quarter 2009. Expenses increased by $11.7 million from the third quarter 2009 primarily due to an increase of $7.8 million in salaries and benefits. Third quarter salary and benefits expenses included the reversal of incentive compensation accruals. During the fourth quarter 2009, headcount increased slightly as the Company continued to invest in its infrastructure, particularly in the risk management area.

Additionally, loan and collection expenses were $4.5 million, compared to $1.4 million in the third quarter, due to increased credit costs associated with non-performing assets in the fourth quarter 2009. Offsetting the increase was a $644,000 decrease in net foreclosed property expenses.

The efficiency ratio was 59.7 percent in the fourth quarter 2009 compared to 76.6 percent in the fourth quarter 2008 and 56.2 percent in the third quarter 2009. The efficiency ratio improved year-over-year as the Company realized the benefits of investments made in people and infrastructure.

Capital

As of December 31, 2009, the Company had a total risk-based capital ratio at 14.70 percent and Tier 1 risk-based capital ratio at 12.33 percent, exceeding the well-capitalized thresholds of 10 percent and 6 percent, respectively. The Company raised $194 million in new capital through a common stock offering during the fourth quarter and does not foresee the need to raise additional capital in the near term.

The Company’s tangible common equity ratio at December 31, 2009, was 7.41 percent.

Quarterly Conference Call and Webcast Presentation

Interested parties are invited to listen to our quarterly conference call on Monday, January 25, 2010, at 10 a.m. CST. The call may be accessed by telephone at (888) 782-9127 (U.S. and Canada) or (706) 634-5643 (International). A live webcast of the call can be accessed on our website at www.theprivatebank.com by visiting the Investor Relations tab under the About Us section. A rebroadcast of the call will be available beginning approximately two hours after the call until midnight on February 1, 2010, by calling (800) 642-1687 (U.S. and Canada) or (706) 645-9291 (International) and entering passcode #49424957.

About PrivateBancorp, Inc.

PrivateBancorp, Inc. is a growing diversified financial services company with 34 offices in 10 states and $12.1 billion in assets as of December 31, 2009. Through its subsidiaries, PrivateBancorp delivers customized business and personal financial services to middle-market commercial and commercial real estate companies, as well as business owners, executives, entrepreneurs and families in all of the markets and communities we serve. Our website is www.theprivatebank.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 and future prospects of the Company include, but are not limited to, credit quality and the need to increase our allowance for loan losses; unforeseen difficulties and higher than expected costs associated with our growth; unforeseen difficulties in integrating new hires; inability to retain top management personnel; insufficient liquidity or funding sources; the failure to obtain on terms acceptable to us, or at all, the capital necessary to maintain our regulatory capital ratios above the “well-capitalized” threshold; slower than anticipated growth of the Company’s business or unanticipated business declines, including as a result of continuing negative economic conditions; fluctuations in market rates of interest and loan and deposit pricing in the Company’s market areas; the effect of margin pressure on the Company’s earnings; legislative or regulatory changes, particularly changes in the regulation of financial services companies and/or the products and services offered by financial services companies and regulation of banks participating in the TARP Capital Purchase Program; the regulatory examination environment and trends in regulatory enforcement actions; unforeseen difficulties relating to the acquisition and integration of businesses acquired in purchase and assumption transactions; further deterioration in asset quality; any additional charges related to asset impairments including impairment of deferred tax and goodwill assets; adverse developments in the Company’s loan or investment portfolios; failure to improve operating efficiencies through expense controls; competition; 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 unless required under the federal securities laws.

Editor’s Note: Financial highlights attached.


Consolidated Income Statements
Unaudited
(Amounts in thousands except per share data)


	Three Months Ended December 31,						Year Ended December 31,
	2009			2008			2009			2008
Interest Income
Loans, including fees	$	115,140		$	107,370		$	411,830		$	367,104
Federal funds sold and other short-term investments		340			488			1,112			1,145
Securities:
Taxable		15,672			10,754			58,663			28,657
Exempt from Federal income taxes		1,672			2,025			7,107			8,477

Total interest income		132,824			120,637			478,712			405,383

Interest Expense
Interest-bearing deposits		848			285			2,646			1,515
Savings deposits and money market accounts		9,022			11,579			29,635			48,880
Brokered and other time deposits		13,959			36,405			79,335			126,316
Short-term borrowings		1,613			3,416			8,094			12,787
Long-term debt		7,820			9,805			34,018			25,490

Total interest expense		33,262			61,490			153,728			214,988

Net interest income		99,562			59,147			324,984			190,395
Provision for loan and covered asset losses		70,077			119,250			199,419			189,579

Net Interest Income (Expense) after provision for loan and covered asset losses		29,485			(60,103	)		125,565			816


Non-interest Income
The PrivateWealth Group		4,081			4,140			15,459			16,968
Mortgage banking		2,243			622			8,930			4,158
Capital markets products		2,409			4,767			17,150			11,049
Treasury management		3,366			1,086			10,148			2,369
Bank owned life insurance		442			501			1,728			1,809
Banking and other services		1,918			1,297			11,659			4,453
Net securities (losses) gains		(149	)		(770	)		7,381			510
Early extinguishment of debt		-			-			(985	)		-

Total non-interest income		14,310			11,643			71,470			41,316


Non-interest Expense
Salaries and employee benefits		31,020			28,219			123,653			116,678
Net occupancy expense		7,039			4,543			26,170			17,098
Technology and related costs		3,503			2,019			10,599			6,310
Marketing		3,568			2,781			9,843			10,425
Professional fees		5,562			4,714			16,327			13,954
Investment manager expenses		576			690			2,322			3,299
Net foreclosed property expenses		1,810			4,605			5,675			6,217
Supplies and printing		436			461			1,465			1,627
Postage, telephone, and delivery		855			563			3,060			2,226
Insurance		5,015			2,341			22,607			7,408
Amortization of intangibles		536			267			1,737			1,164
Loan and collection		4,526			1,456			9,617			3,023
Other expenses		4,082			2,244			14,340			6,696

Total non-interest expense		68,528			54,903			247,415			196,125

Loss before income taxes		(24,733	)		(103,363	)		(50,380	)		(153,993	)
Income tax benefit		(9,556	)		(40,783	)		(20,564	)		(61,357	)

Net loss		(15,177	)		(62,580	)		(29,816	)		(92,636	)
Net income attributable to noncontrolling interests		64			53			247			309

Net loss attributable to controlling interests		(15,241	)		(62,633	)		(30,063	)		(92,945	)
Preferred stock dividends and discount accretion		3,389			146			12,443			546

Net loss available to common stockholders	$	(18,630	)	$	(62,779	)	$	(42,506	)	$	(93,491	)


Per Common Share Data
Basic	$	(0.30	)	$	(1.98	)	$	(0.95	)	$	(3.16	)
Diluted	$	(0.30	)	$	(1.98	)	$	(0.95	)	$	(3.16	)
Dividends	$	0.01		$	0.075		$	0.04		$	0.30
Weighted average common shares outstanding		61,608			31,733			44,516			29,553
Diluted average common shares outstanding		61,608			31,733			44,516			29,553

Note 1: Certain reclassifications have been made to prior period financial statements to place them on a basis comparable with the current period financial statements.

Note 2: For the three months and year ended December 31, 2008 and 2009 diluted shares are equal to basic shares due to the net loss. The calculation of diluted earnings per share results in anti-dilution.


Quarterly Consolidated Income Statements
Unaudited
(Amounts in thousands except per share data)


	4Q09			3Q09			2Q09			1Q09		4Q08
Interest Income
Loans, including fees	$	115,140		$	107,749		$	95,997		$	92,944	$	107,370
Federal funds sold and other short-term investments		340			323			161			288		488
Securities:
Taxable		15,672			14,799			13,646			14,546		10,754
Exempt from Federal income taxes		1,672			1,797			1,786			1,852		2,025

Total interest income		132,824			124,668			111,590			109,630		120,637

Interest Expense
Interest-bearing deposits		848			932			467			399		285
Savings deposits and money market accounts		9,022			8,013			6,036			6,564		11,579
Brokered and other time deposits		13,959			18,170			20,322			26,884		36,405
Short-term borrowings		1,613			1,649			1,844			2,988		3,416
Long-term debt		7,820			8,469			8,814			8,915		9,805

Total interest expense		33,262			37,233			37,483			45,750		61,490

Net interest income		99,562			87,435			74,107			63,880		59,147
Provision for loan and covered asset losses		70,077			90,016			21,521			17,805		119,250

Net Interest Income (Expense) after provision for loan and covered asset losses		29,485			(2,581	)		52,586			46,075		(60,103	)


Non-interest Income
The PrivateWealth Group		4,081			4,084			3,500			3,794		4,140
Mortgage banking		2,243			1,826			2,686			2,175		622
Capital markets products		2,409			(322	)		3,830			11,233		4,767
Treasury management		3,366			3,067			2,110			1,605		1,086
Bank owned life insurance		442			444			453			389		501
Banking and other services		1,918			4,093			2,054			3,594		1,297
Net securities (losses) gains		(149	)		(309	)		7,067			772		(770	)
Early extinguishment of debt		-			-			(985	)		-		-

Total non-interest income		14,310			12,883			20,715			23,562		11,643


Non-interest Expense
Salaries and employee benefits		31,020			23,212			34,300			35,121		28,219
Net occupancy expense		7,039			7,004			6,067			6,060		4,543
Technology and related costs		3,503			2,565			1,967			2,564		2,019
Marketing		3,568			2,500			1,933			1,842		2,781
Professional fees		5,562			5,759			2,492			2,514		4,714
Investment manager expenses		576			581			556			609		690
Net foreclosed property expenses		1,810			2,454			967			444		4,605
Supplies and printing		436			295			392			342		461
Postage, telephone, and delivery		855			803			821			581		563
Insurance		5,015			4,603			9,157			3,832		2,341
Amortization of intangibles		536			547			325			329		267
Loan and collection		4,526			1,388			1,838			1,865		1,456
Other expenses		4,082			5,124			3,180			1,954		2,244

Total non-interest expense		68,528			56,835			63,995			58,057		54,903

(Loss) income before income taxes		(24,733	)		(46,533	)		9,306			11,580		(103,363	)
Income tax (benefit) provision		(9,556	)		(18,789	)		3,372			4,409		(40,783	)

Net (loss) income		(15,177	)		(27,744	)		5,934			7,171		(62,580	)
Net income attributable to noncontrolling interests		64			66			57			60		53

Net (loss) income attributable to controlling interests		(15,241	)		(27,810	)		5,877			7,111		(62,633	)
Preferred stock dividends and discount accretion		3,389			3,385			3,399			2,270		146

Net (loss) income available to common stockholders	$	(18,630	)	$	(31,195	)	$	2,478		$	4,841	$	(62,779	)


Per Common Share Data
Basic	$	(0.30	)	$	(0.68	)	$	0.06		$	0.15	$	(1.98	)
Diluted	$	(0.30	)	$	(0.68	)	$	0.06		$	0.14	$	(1.98	)
Dividends	$	0.01		$	0.01		$	0.01		$	0.01	$	0.075
Weighted average common shares outstanding		61,608			46,047			38,015			32,030		31,733
Diluted average common shares outstanding		61,608			46,047			39,795			34,304		31,733

Note 1: Certain reclassifications have been made to prior period financial statements to place them on a basis comparable with the current period financial statements.

Note 2: For the fourth quarter 2008 and the third and fourth quarter 2009 diluted shares are equal to basic shares due to the net loss. The calculation of diluted earnings per share during those periods results in anti-dilution.


Consolidated Balance Sheets
Unaudited
(Dollars in thousands)


	12/31/09			09/30/09			06/30/09			03/31/09			12/31/08
	unaudited			unaudited			unaudited			unaudited			unaudited
Assets
Cash and due from banks	$	320,160		$	199,703		$	99,088		$	96,712		$	131,848
Fed funds sold and other short-term investments		218,935			332,188			393,953			83,626			98,387
Loans held for sale		28,363			19,000			23,825			11,298			17,082
Securities available-for-sale, at fair value		1,569,541			1,648,313			1,443,648			1,385,244			1,425,564
Non-marketable equity investments		29,413			30,681			28,586			28,035			27,213

Loans, excluding covered assets and net of unearned fees		9,073,474			9,028,456			8,728,926			8,483,641			8,036,807
Allowance for loan losses		(221,688	)		(192,791	)		(140,088	)		(127,011	)		(112,672	)

Loans, net of allowance for loan losses and unearned fees		8,851,786			8,835,665			8,588,838			8,356,630			7,924,135


Covered assets		502,034			530,059			-			-			-
Allowance for covered assets losses		(2,764	)		-			-			-			-

Covered assets, net of allowance for covered assets		499,270			530,059			-			-			-


Other real estate owned		41,497			36,705			29,236			28,703			23,823
Premises, furniture, and equipment, net		41,344			32,870			33,162			33,179			34,201
Accrued interest receivable		35,562			35,862			30,867			30,627			34,282
Investment in bank owned life insurance		47,666			47,225			46,780			46,327			45,938
Goodwill		94,671			94,683			95,045			95,045			95,045
Other intangible assets		18,485			19,021			5,890			6,215			6,544
Derivative assets		71,540			83,784			66,921			94,214			74,999
Other assets		191,200			136,825			103,511			79,859			101,476

Total assets	$	12,059,433		$	12,082,584		$	10,989,350		$	10,375,714		$	10,040,537


Liabilities
Demand deposits:
Non-interest bearing	$	1,840,900		$	1,565,492		$	1,243,453		$	954,311		$	711,693
Interest bearing		752,728			589,298			535,374			428,529			232,099
Savings deposits and money market accounts		4,080,824			4,057,382			3,129,384			3,021,268			2,798,882
Brokered deposits ⁽¹⁾		1,566,139			1,606,823			1,943,065			1,740,960			2,654,768
Other time deposits		1,678,172			1,741,783			1,426,874			1,671,520			1,599,014

Total deposits		9,918,763			9,560,778			8,278,150			7,816,588			7,996,456
Short-term borrowings		214,975			690,352			892,706			834,466			654,765
Long-term debt		533,023			618,173			606,793			710,793			618,793
Accrued interest payable		9,673			12,051			18,809			23,775			37,623
Derivative liabilities		71,958			85,097			65,844			91,911			76,497
Other liabilities		75,425			47,614			47,670			31,953			50,837

Total liabilities		10,823,817			11,014,065			9,909,972			9,509,486			9,434,971


Stockholders’ Equity
Preferred stock		237,487			237,145			236,808			294,546			58,070
Common stock		70,444			46,593			46,548			32,543			32,468
Treasury stock		(18,489	)		(18,427	)		(18,223	)		(17,338	)		(17,285	)
Additional paid-in-capital		940,338			767,579			761,068			495,811			482,347
Retained earnings		(22,093	)		(2,748	)		28,896			26,875			22,365
Accumulated other comprehensive income, net		27,896			38,161			24,131			33,698			27,568

Controlling interest stockholders’ equity		1,235,583			1,068,303			1,079,228			866,135			605,533

Noncontrolling interests		33			216			150			93			33

Total stockholders’ equity		1,235,616			1,068,519			1,079,378			866,228			605,566

Total liabilities and stockholders’ equity	$	12,059,433		$	12,082,584		$	10,989,350		$	10,375,714		$	10,040,537

Note 1: Certain reclassifications have been made to prior period financial statements to place them on a basis comparable with the current period financial statements.

(1)

Computed as the sum of traditional brokered deposits, client CDARs and non-client CDARs. Client CDARs for the fourth quarter 2008 through the fourth quarter 2009 were $679.0 million, $865.7 million, $1.0 billion, $981.7 million, and $979.7 million and are included in client deposits.


Selected Financial Data Unaudited (Amounts in thousands except per share data)


	4Q09			3Q09			2Q09			1Q09			4Q08

Selected Statement of Income Data:
Net interest income	$	99,562		$	87,435		$	74,107		$	63,880		$	59,147
Net revenue ⁽¹⁾	$	114,802		$	101,155		$	95,821		$	88,288		$	71,707
Operating profit ⁽²⁾	$	46,274		$	44,320		$	31,826		$	30,231		$	16,804
(Loss) income before taxes	$	(24,733	)	$	(46,533	)	$	9,306		$	11,580		$	(103,363	)
Net (loss) income available to common stockholders	$	(18,630	)	$	(31,195	)	$	2,478		$	4,841		$	(62,779	)

Per Common Share Data:
Basic earnings per share	$	(0.30	)	$	(0.68	)	$	0.06		$	0.15		$	(1.98	)
Diluted earnings per share⁽³⁾	$	(0.30	)	$	(0.68	)	$	0.06		$	0.14		$	(1.98	)
Dividends	$	0.01		$	0.01		$	0.01		$	0.01		$	0.075
Book value (period end) ⁽⁴⁾	$	13.99		$	17.48		$	17.74		$	16.96		$	16.31
Tangible book value (period end) ⁽⁵⁾	$	12.41		$	15.09		$	15.62		$	13.96		$	13.28
Market value (close)	$	8.97		$	24.46		$	22.24		$	14.46		$	32.46
Book value multiple		0.64	x		1.40	x		1.25	x		0.85	x		1.99	x

Share Data:
Weighted Average Common Shares Outstanding		61,608			46,047			38,015			32,030			31,733
Diluted Average Common Shares Outstanding ⁽³⁾		61,608			46,047			39,795			34,304			31,733
Common shares issued (at period end)		71,869			48,104			48,015			34,180			34,043
Common shares outstanding (at period end)		71,332			47,574			47,493			33,702			33,568

Performance Ratios:
Return on average assets		-0.50	%		-0.94	%		0.23	%		0.29	%		-2.63	%
Return on average common equity		-7.96	%		-14.51	%		1.45	%		3.48	%		-45.11	%
Net interest margin ⁽⁶⁾		3.48	%		3.09	%		2.99	%		2.68	%		2.62	%
Fee revenue as a percent of total revenue ⁽⁷⁾		12.68	%		13.11	%		16.49	%		26.29	%		17.35	%
Non-interest income to average assets		0.47	%		0.43	%		0.80	%		0.95	%		0.49	%
Non-interest expense to average assets		2.26	%		1.91	%		2.47	%		2.34	%		2.31	%
Net overhead ratio ⁽⁸⁾		1.79	%		1.48	%		1.67	%		1.39	%		1.82	%
Efficiency ratio⁽⁹⁾		59.69	%		56.19	%		66.79	%		65.76	%		76.57	%

Selected Financial Condition Data:
The Private Wealth Group assets under management	$	3,983,623		$	4,008,268		$	3,171,697		$	3,164,158		$	3,261,061

Balance Sheet Ratios:
Loans to Deposits (period end)		91.48	%		94.43	%		105.45	%		108.53	%		100.50	%

Average interest-earning assets to average interest-bearing liabilities		127.44	%		122.93	%		120.58	%		115.10	%		112.30	%

Capital Ratios (period end):
Total equity to total assets		10.25	%		8.84	%		9.82	%		8.35	%		6.03	%
Total risk-based		14.70	%		13.40	%		14.40	%		12.63	%		10.32	%
Tier-1 risk-based		12.33	%		11.01	%		11.95	%		10.13	%		7.24	%
Leverage		11.23	%		9.94	%		11.67	%		9.79	%		7.17	%
Tangible common equity to tangible assets ⁽¹⁰⁾		7.41	%		6.00	%		6.81	%		4.58	%		4.49	%

LOGO

(1)	Computed as the sum of net interest income on a tax equivalent basis and non-interest income. The quarterly tax equivalent adjustments for the fourth quarter 2008 through the fourth quarter 2009 were $917,000, $846,000, $999,000, $837,000, and $930,000, respectively.

(2)

Computed as the sum of net interest income on a tax equivalent basis and non-interest income, less non-interest expense. The quarterly tax equivalent adjustments for the fourth quarter 2008 through the fourth quarter 2009 were $917,000, $846,000, $999,000, $837,000, and $930,000, respectively.

(3)

For the fourth quarter 2008 and the third and fourth quarters 2009, diluted shares are equal to basic shares due to the net loss. The calculation of diluted earnings per share results in anti-dilution for the fourth quarter 2008 and the third and fourth quarters 2009.

(4)

Computed as total common equity divided by outstanding shares at end of period.

(5)

Computed as total common equity less goodwill and other intangibles divided by outstanding shares at end of period. This is a non-GAAP financial measure.

(6)

The quarterly tax equivalent adjustments for the fourth quarter 2008 through the fourth quarter 2009 were $917,000, $846,000, $999,000, $837,000, and $930,000, respectively.

(7)

Computed as non-interest income less acquisition related gains, securities gains (losses), net and early extinguishment of debt divided by the sum of net interest income and non-interest income less acquisition related gains, securities gains (losses), net and early extinguishment of debt.

(8)

Computed as non-interest expense less non-interest income divided by average total assets.

(9)

Computed as non-interest expense divided by the sum of net interest income on a tax equivalent basis and non-interest income. The quarterly tax equivalent adjustments for the fourth quarter 2008 through the fourth quarter 2009 were $917,000, $846,000 $999,000, $837,000, and $930,000, respectively.

(10)

Computed as tangible common equity divided by tangible assets, where tangible common equity equals total equity less preferred stock, goodwill and other intangible assets and tangible assets equals total assets less goodwill and other intangible assets. This is a non-GAAP financial measure.


Loan Composition (excluding covered assets⁽¹⁾) Unaudited (Dollars in thousands)


	12/31/09		09/30/09		06/30/09		03/31/09		12/31/08
Commercial and Industrial	$	3,820,698	$	3,888,744	$	3,682,155	$	3,531,439	$	3,437,130
Owner-Occupied CRE		835,913		765,489		899,315		872,656		538,688

Total Commercial Loans		4,656,611		4,654,233		4,581,470		4,404,095		3,975,818

Commercial Real Estate		2,293,996		2,169,209		1,954,692		1,825,805		1,980,271
Multi-family CRE		521,001		466,098		492,896		520,455		403,690

Total CRE Loans		2,814,997		2,635,307		2,447,588		2,346,260		2,383,961

Construction		719,224		874,970		867,660		837,952		815,150
Residential Real Estate		319,463		316,795		319,762		332,736		328,138
Home Equity		220,025		214,630		215,087		205,872		191,934
Personal		343,154		332,521		297,359		356,726		341,806

Total Loans	$	9,073,474	$	9,028,456	$	8,728,926	$	8,483,641	$	8,036,807

LOGO

Commercial Real Estate and Construction Loans Portfolio by Collateral Type


	12/31/09				09/30/09				12/31/08
	Amount		% of Total		Amount		% of Total		Amount		% of Total
Commercial Real Estate Portfolio
Land	$	400,261	14	%	$	408,177	15	%	$	475,802	20	%
Residential 1-4 Family		192,695	7	%		252,113	10	%		163,438	7	%
Multi-Family 5+		521,001	19	%		466,098	18	%		403,690	17	%
Industrial/Warehouse		316,899	11	%		289,307	11	%		268,962	11	%
Office		410,131	14	%		386,514	15	%		441,929	19	%
Retail		419,115	15	%		341,233	13	%		357,844	15	%
Health Care		49,337	2	%		50,184	2	%		28,706	1	%
Mixed Use/Other		505,558	18	%		441,681	16	%		243,590	10	%

Total Commercial Real Estate	$	2,814,997	100	%	$	2,635,307	100	%	$	2,383,961	100	%


Construction Portfolio
Land	$	91,207	13	%	$	195,644	22	%	$	29,790	4	%
Residential 1-4 Family		61,854	9	%		88,765	10	%		216,384	27	%
Multi-Family 5+		131,001	18	%		156,451	18	%		44,893	5	%
Industrial/Warehouse		31,461	4	%		13,778	2	%		-	0	%
Office		112,946	16	%		48,711	6	%		-	0	%
Retail		127,356	18	%		123,959	14	%		38,508	5	%
Mixed Use/Other		163,399	22	%		247,662	28	%		485,575	59	%

Total Construction	$	719,224	100	%	$	874,970	100	%	$	815,150	100	%

(1)

Covered assets represent assets acquired from the FDIC subject to a loss sharing agreement and are presented separately on the Consolidated Balance Sheets.


Asset Quality (excluding covered assets⁽¹⁾) Unaudited (Dollars in thousands)


	4Q09			3Q09			2Q09			1Q09			4Q08

Credit Quality Key Ratios:
Net charge-offs to average loans		1.80	%		1.67	%		0.39	%		0.17	%		5.49	%
Total non-performing loans to total loans		4.36	%		3.99	%		2.10	%		1.92	%		1.64	%
Total non-performing assets to total assets		3.62	%		3.28	%		1.94	%		1.85	%		1.55	%
Nonaccrual loans to:
total loans		4.36	%		3.99	%		2.10	%		1.92	%		1.64	%
total assets		3.28	%		2.98	%		1.67	%		1.57	%		1.31	%
Allowance for loan losses to:
total loans		2.44	%		2.14	%		1.60	%		1.50	%		1.40	%
non-performing loans		56	%		54	%		76	%		78	%		85	%
nonaccrual loans		56	%		54	%		76	%		78	%		85	%

Non-performing assets:
Loans past due 90 days and accruing	$	0		$	0		$	0		$	0		$	0
Nonaccrual loans		395,447			359,918			183,526			162,896			131,919
OREO		41,497			36,705			29,236			28,703			23,823

Total non-performing assets	$	436,944		$	396,623		$	212,762		$	191,599		$	155,742

LOGO

Nonaccrual Loans Stratification


	$5.0 Million or More		$3.0 Million to $4.9 Million		$1.5 Million to $2.9 Million		Under $1.5 Million		Total
As of December 31, 2009
Amount:
Commercial	$	46,176	$	-	$	4,092	$	19,078	$	69,346
Commercial real estate		51,425		15,186		60,028		44,410		171,049
Construction		41,772		27,690		24,590		19,770		113,822
Residential real estate		-		3,265		2,959		8,257		14,481
Personal and home equity		5,031		7,419		4,998		9,301		26,749

Total	$	144,404	$	53,560	$	96,667	$	100,816	$	395,447


Number of borrowers:
Commercial		3		-		2		51		56
Commercial real estate		6		4		28		88		126
Construction		4		7		11		38		60
Residential real estate		-		1		1		23		25
Personal and home equity		1		2		3		39		45

Total		14		14		45		239		312


As of September 30, 2009
Amount:
Commercial	$	44,977	$	-	$	13,679	$	14,152	$	72,808
Commercial real estate		50,610		14,099		39,917		40,812		145,438
Construction		54,979		23,049		22,605		18,243		118,876
Residential real estate		-		3,300		5,089		3,510		11,899
Personal and home equity		-		3,000		1,544		6,353		10,897

Total	$	150,566	$	43,448	$	82,834	$	83,070	$	359,918


Number of borrowers:
Commercial		4		-		6		50		60
Commercial real estate		6		4		19		78		107
Construction		5		6		11		36		58
Residential real estate		-		1		2		13		16
Personal and home equity		-		1		1		30		32

Total		15		12		39		207		273

(1)

Covered assets represent assets acquired from the FDIC subject to a loss sharing agreement and are presented separately on the Consolidated Balance Sheets. Covered assets are included as a component of total assets in calculations above.


Loan Portfolio Aging (excluding covered assets⁽¹⁾) Unaudited (Dollars in thousands)


As of December 31, 2009	Current			30-59 Days Past Due			60-89 Days Past Due			90 Days Past Due			Nonaccrual			Total Loans
Loan balances:
Commercial	$	4,563,883		$	13,427		$	9,955		$	0		$	69,346		$	4,656,611
Commercial real estate		2,589,327			23,983			30,638			-			171,049			2,814,997
Construction		601,260			3,391			751			-			113,822			719,224
Residential real estate		299,158			4,170			1,654			-			14,481			319,463
Personal and home equity		521,738			6,097			8,595			-			26,749			563,179

Total loans	$	8,575,366		$	51,068		$	51,593		$	0		$	395,447		$	9,073,474


Aging as a percent of loan balance:
Commercial		98.01	%		0.29	%		0.21	%		0.00	%		1.49	%		100.00	%
Commercial real estate		91.98	%		0.85	%		1.09	%		0.00	%		6.08	%		100.00	%
Construction		83.60	%		0.47	%		0.10	%		0.00	%		15.83	%		100.00	%
Residential real estate		93.64	%		1.31	%		0.52	%		0.00	%		4.53	%		100.00	%
Personal and home equity		92.64	%		1.08	%		1.53	%		0.00	%		4.75	%		100.00	%

Total loans		94.51	%		0.56	%		0.57	%		0.00	%		4.36	%		100.00	%

	4Q09			3Q09			2Q09			1Q09			4Q08

Nonaccrual loans:
Commercial	$	69,346		$	72,808		$	25,442		$	19,017		$	11,735
Commercial Real Estate		171,049			145,438			72,621			55,238			48,143
Construction		113,822			118,876			64,849			66,067			63,305
Residential Real Estate		14,481			11,899			8,913			8,138			6,829
Personal and Home Equity		26,749			10,897			11,701			14,436			1,907

Total	$	395,447		$	359,918		$	183,526		$	162,896		$	131,919


Nonaccrual loans as a percent of total loan type:
Commercial		1.49	%		1.56	%		0.56	%		0.43	%		0.30	%
Commercial Real Estate		6.08	%		5.52	%		2.97	%		2.35	%		2.02	%
Construction		15.83	%		13.59	%		7.47	%		7.88	%		7.77	%
Residential Real Estate		4.53	%		3.76	%		2.79	%		2.45	%		2.08	%
Personal and Home Equity		4.75	%		1.99	%		2.28	%		2.57	%		0.36	%

Total		4.36	%		3.99	%		2.10	%		1.92	%		1.64	%

Loans past due 60-89 days and still accruing:
Commercial	$	9,955		$	1,588		$	228		$	1,355		$	2,874
Commercial Real Estate		30,638			23,245			24,491			2,138			1,773
Construction		751			10,962			7,076			3,554			1,060
Residential Real Estate		1,654			-			2,888			-			-
Personal and Home Equity		8,595			3,087			4,698			471			246

Total	$	51,593		$	38,882		$	39,381		$	7,518		$	5,953


Loans past due 60-89 days and still accruing as a percent of total loan type:
Commercial		0.21	%		0.03	%		0.00	%		0.03	%		0.07	%
Commercial Real Estate		1.09	%		0.88	%		1.00	%		0.09	%		0.07	%
Construction		0.10	%		1.25	%		0.82	%		0.42	%		0.13	%
Residential Real Estate		0.52	%		-			0.90	%		-			-
Personal and Home Equity		1.53	%		0.56	%		0.92	%		0.08	%		0.05	%

Total		0.57	%		0.43	%		0.45	%		0.09	%		0.07	%

Loans past due 30-59 days and still accruing:
Commercial	$	13,427		$	4,424		$	4,022		$	22,598		$	9,186
Commercial Real Estate		23,983			18,005			11,050			53,743			7,340
Construction		3,391			2,541			3,936			3,642			8,106
Residential Real Estate		4,170			1,431			-			5,606			3,485
Personal and Home Equity		6,097			3,877			1,007			7,333			1,334

Total	$	51,068		$	30,278		$	20,015		$	92,922		$	29,451


Loans past due 30-59 days and still accruing as a percent of total loan type:
Commercial		0.29	%		0.10	%		0.09	%		0.51	%		0.23	%
Commercial Real Estate		0.85	%		0.68	%		0.45	%		2.29	%		0.31	%
Construction		0.47	%		0.29	%		0.45	%		0.43	%		0.99	%
Residential Real Estate		1.31	%		0.45	%		-			1.68	%		1.06	%
Personal and Home Equity		1.08	%		0.71	%		0.20	%		1.30	%		0.25	%

Total		0.56	%		0.34	%		0.23	%		1.10	%		0.37	%

(1)


Allowance for Loan Losses (excluding covered assets⁽¹⁾) Unaudited (Dollars in thousands)


	4Q09			3Q09			2Q09			1Q09			4Q08
Change in allowance for loan losses:
Balance at beginning of period	$	192,791		$	140,088		$	127,011		$	112,672		$	102,223
Loans charged off:
Commercial	$	(11,082	)	$	(13,065	)	$	(2,220	)	$	(5,377	)	$	(11,184	)
Commercial Real Estate		(13,120	)		(13,772	)		(428	)		(246	)		(45,240	)
Construction		(14,438	)		(6,928	)		(1,507	)		(598	)		(47,555	)
Residential Real Estate		(970	)		(475	)		(50	)		-			(2,385	)
Home Equity		(805	)		(100	)		(262	)		(19	)		(1,782	)
Personal		(1,086	)		(5,802	)		(8,113	)		(797	)		(1,313	)

Total loans charged off		(41,501	)		(40,142	)		(12,580	)		(7,037	)		(109,459	)

Recoveries:
Commercial	$	410		$	1,060		$	1,329		$	1,190		$	174
Commercial Real Estate		126			676			462			496			3
Construction		240			1,026			1,950			1,840			474
Residential Real Estate		12			-			138			2			-
Home Equity		52			1			11			10			1
Personal		34			66			246			33			6

Total recoveries:		874			2,829			4,136			3,571			658

Total net loan charge-offs		(40,627	)		(37,313	)		(8,444	)		(3,466	)		(108,801	)
Provision		69,524			90,016			21,521			17,805			119,250

Balance at end of period	$	221,688		$	192,791		$	140,088		$	127,011		$	112,672


Allocation of allowance for loan losses:
General allocated reserve:
Commercial	$	43,350		$	59,118		$	46,449		$	47,258		$	39,524
Commercial Real Estate		77,223			44,745			36,880			37,026			31,625
Construction		23,581			41,222			34,710			30,429			27,231
Residential Real Estate		3,635			2,009			1,468			1,443			1,294
Home Equity		2,862			1,582			1,224			1,220			1,000
Personal		5,277			2,084			1,810			1,540			1,527

Total general allocated	$	155,928		$	150,760		$	122,541		$	118,916		$	102,201
Specific reserve		65,760			42,031			16,847			7,460			330
Unallocated reserve		-			-			700			635			10,141

Total	$	221,688		$	192,791		$	140,088		$	127,011		$	112,672


Allocation of reserve by a percent of total allowance for loan losses:
General allocated reserve:
Commercial		20	%		31	%		33	%		37	%		35	%
Commercial Real Estate		35	%		23	%		26	%		29	%		28	%
Construction		10	%		21	%		25	%		24	%		24	%
Residential Real Estate		2	%		1	%		1	%		1	%		1	%
Home Equity		1	%		1	%		1	%		1	%		1	%
Personal		2	%		1	%		1	%		1	%		2	%

Total general allocated		70	%		78	%		87	%		93	%		91	%
Specific reserve		30	%		22	%		13	%		6	%		-
Unallocated reserve		-			-			-			1	%		9	%

Total		100	%		100	%		100	%		100	%		100	%


Allowance for loan losses to:
total loans		2.44	%		2.14	%		1.60	%		1.50	%		1.40	%
non-performing loans		56	%		54	%		76	%		78	%		85	%
nonaccrual loans		56	%		54	%		76	%		78	%		85	%

(1)


Deposits Unaudited (Dollars in thousands)


	12/31/09		09/30/09		06/30/09		03/31/09		12/31/08
Non-interest bearing deposits	$	1,840,900	$	1,565,492	$	1,243,453	$	954,311	$	711,693
Interest-bearing deposits		752,728		589,298		535,374		428,529		232,099
Savings deposits		141,614		135,937		19,852		16,745		15,644
Money market accounts		3,939,210		3,921,445		3,109,532		3,004,523		2,783,238
Brokered deposits:
Traditional brokered deposits		389,590		453,759		708,802		768,488		1,481,762
Client CDARS		979,728		981,677		1,047,082		865,656		678,958
Non-client CDARS		196,821		171,387		187,181		106,816		494,048

Total brokered deposits		1,566,139		1,606,823		1,943,065		1,740,960		2,654,768
Other time deposits		1,678,172		1,741,783		1,426,874		1,671,520		1,599,014

Total deposits	$	9,918,763	$	9,560,778	$	8,278,150	$	7,816,588	$	7,996,456


Client deposits⁽¹⁾	$	9,332,352	$	8,935,632	$	7,382,167	$	6,941,284	$	6,020,646

(1)

Client deposits are equal to total deposits less brokered deposits plus client CDARS^TM.

n/m Not meaningful

LOGO


Net Interest Margin Unaudited (Dollars in thousands)


	Three Months Ended December 31,
	2009							2008
	Average Balance			Interest		Rate		Average Balance			Interest		Rate
Assets:
Fed funds sold and other short-term investments	$	335,990		$	340	0.40	%	$	119,711		$	488	1.61	%
Securities:
Taxable		1,424,474			15,672	4.40	%		912,965			10,754	4.71	%
Tax exempt		159,021			2,602	6.55	%		179,685			2,941	6.55	%

Total securities		1,583,495			18,274	4.62	%		1,092,650			13,695	5.01	%

Loans:
Commercial, Construction & CRE		8,111,383			89,518	4.36	%		7,023,689			96,904	5.44	%
Residential		335,005			4,282	5.11	%		335,117			4,770	5.69	%
Private Client		531,955			5,191	3.87	%		489,086			5,696	4.62	%

Total loans ⁽¹⁾		8,978,343			98,991	4.36	%		7,847,892			107,370	5.40	%

Covered assets		513,038			16,149	12.34	%		-			-	-

Total earning assets	$	11,410,866		$	133,754	4.63	%	$	9,060,253		$	121,553	5.30	%

Cash and due from banks		269,436							141,128
Allowance for loan losses		(190,482	)						(104,510	)
Other assets		550,547							338,520

Total assets	$	12,040,367						$	9,435,391


Liabilities and Stockholders’ Equity:
Interest-bearing demand deposits	$	628,760		$	848	0.54	%	$	166,636		$	285	0.68	%
Savings deposits		138,211			283	0.81	%		15,912			46	1.14	%
Money market accounts		4,024,286			8,739	0.86	%		2,595,014			11,533	1.76	%
Time deposits		1,727,566			7,384	1.70	%		1,606,006			13,191	3.26	%
Brokered deposits		1,572,292			6,575	1.66	%		2,600,547			23,214	3.54	%

Total interest-bearing deposits		8,091,115			23,829	1.17	%		6,984,115			48,269	2.74	%
Short term borrowings		306,347			1,613	2.06	%		478,892			3,416	2.79	%
Long term debt		556,126			7,820	5.58	%		604,554			9,805	6.35	%

Total interest-bearing liabilities		8,953,588			33,262	1.47	%		8,067,561			61,490	3.01	%

Non-interest bearing demand deposits		1,770,036							637,013
Other liabilities		150,476							120,658
Stockholders’ equity		1,166,267							610,159

Total liabilities and stockholders’ equity	$	12,040,367						$	9,435,391

Net interest spread ⁽²⁾						3.16	%						2.29	%
Effect of non interest-bearing funds						0.32	%						0.33	%

Net interest income/margin ^{(3) (4)}				$	100,492	3.48	%				$	60,063	2.62	%

(1)

Non-accrual loans are included in the average balances and the average annualized interest foregone on these loans was approximately $17.8 million for the quarter ended December 31, 2009 compared to approximately $5.9 million in the prior year quarter.

(2)

Yield on average interest-earning assets less rate on average interest-bearing liabilities.

(3)

Reconciliation of the effect after tax equivalent adjustment to reported net interest income:


	Three months ended December 31,
	2009		2008
Net interest income	$	99,562	$	59,147
Tax equivalent adjustment		930		916

Net interest income, tax equivalent basis	$	100,492	$	60,063

(5)

Computed as net interest income, on a tax equivalent basis, divided by average interest-earning assets.