CHICAGO, April 20, 2017 /PRNewswire/ -- PrivateBancorp, Inc. (NASDAQ: PVTB) today reported net income of $58.0 million, or $0.70 per diluted share, for the first quarter 2017, compared to $49.6 million, or $0.62 per diluted share, for the first quarter 2016, and $59.5 million, or $0.73 per diluted share, for the fourth quarter 2016.

"Our first quarter results reflect our consistent focus on building client relationships as loans increased by $535.4 million to $15.6 billion and asset quality remained strong," said Larry D. Richman, President and Chief Executive Officer, PrivateBancorp, Inc. "We realized the benefit of a full quarter's impact of the December interest rate increase and average earning assets of $19.7 billion drove net interest income 15 percent higher from first quarter 2016. Net income was up 17 percent from a year ago to $58.0 million but down from the fourth quarter primarily due to higher employee expenses, as expected. We had a good start to the year.

"We are pleased to have reached a revised agreement with CIBC, which provides our stockholders with a significant increase in value as compared to the initial terms of the transaction," Richman continued. "PrivateBancorp's Board and management team continue to believe in the long-term strategic value of this combination and we continue to recommend that PrivateBancorp stockholders approve the transaction. We are excited to join the CIBC family and continue the integration planning process as we work with CIBC to complete the transaction as expeditiously as possible."

As previously announced, the special meeting of PrivateBancorp stockholders to consider the proposed merger transaction with CIBC is scheduled for May 12, 2017. The transaction is currently expected to close in the second quarter 2017, subject to approval by PrivateBancorp's stockholders and by the banking regulators in Canada and the United States.

First Quarter 2017 Highlights

  • Total loans grew to $15.6 billion, up $2.1 billion from a year ago and $535.4 million from December 31, 2016, driven primarily by activity in commercial and commercial real estate ("CRE") loans. At March 31, 2017, commercial loans represented 64 percent and CRE and construction loans represented 30 percent of total loans, relatively consistent with the comparative periods. The loan-to-deposit ratio was 93.3 percent at March 31, 2017, compared to 93.0 percent a year ago and 93.7 percent at December 31, 2016.
  • Net interest margin was 3.30 percent, compared to 3.30 percent for the first quarter 2016 and 3.23 percent for the fourth quarter 2016. The sequential improvement in net interest margin primarily reflected the repricing of our variable rate loan portfolio reflecting upward movement in short-term rates, offset in part by increased costs for interest-bearing funds.
  • Net income for the first quarter 2017 was impacted by higher compensation expense and a lower effective tax rate, both at levels which are not expect to recur in the remainder of 2017. Included in compensation expense in the first quarter was approximately $17 million related to accelerated expense recognition for a portion of the annual equity awards granted during the quarter and higher payroll taxes and 401(k) costs as is typical in the first quarter of the year. The first quarter 2017's effective tax rate was impacted by approximately $7.6 million in tax benefits specific to first quarter activity.
  • The provision for loan and covered loan losses was $8.4 million for the first quarter 2017, compared to $6.4 million for the first quarter 2016 and $6.0 million for the fourth quarter 2016. The allowance for loan losses as a percentage of total loans was 1.25 percent for the first quarter 2017, compared to 1.23 percent for both the first quarter 2016 and the fourth quarter 2016.
  • Return on average assets was 1.17 percent and return on average common equity was 12.0 percent for the first quarter 2017.

Operating Performance

Net interest income grew to $161.0 million in the first quarter 2017, increasing 15 percent from the first quarter 2016 and 4 percent from the fourth quarter 2016, primarily driven by growth in average loans of 15 percent compared to first quarter 2016 and 3 percent compared to the fourth quarter 2016 and higher short-term rates. Net interest income for the first quarter 2017 was impacted by one fewer day compared to the first quarter 2016 and two fewer days as compared to the fourth quarter 2016.

Net interest margin was 3.30 percent in the first quarter 2017, consistent with a year ago and increasing seven basis points from the fourth quarter 2016. Loan yields increased 13 basis points from the fourth quarter 2016, primarily attributable to continued upward movement in LIBOR. Approximately 70 percent of the loan portfolio at year end was tied to one-month LIBOR, which was 98 basis points at March 31, 2017, compared to 43 basis points a year ago and 77 basis points at December 31, 2016. The interest rate moves during March 2017 are expected to be more impactful to loan yields during the second quarter 2017. Loan fees tied to early loan repayments were five basis points lower on a sequential basis. Deposit costs increased by eight basis points from the fourth quarter 2016 and 15 basis points year-over year, reflecting deposits repriced to a higher Fed funds effective or target rate and increases in rates paid on other deposit accounts. The impact of higher deposit costs on margin was somewhat reduced by the value of average noninterest-bearing funds in a higher rate environment. Further interest rate increases, or changing expectations about future short-term interest rate movements, may impact deposit market pricing, competitive dynamics, and overall funding costs in future periods.

Noninterest income was $37.3 million in the first quarter 2017, increasing $3.7 million from the first quarter 2016 and down $2.1 million from the fourth quarter 2016. Other income for the fourth quarter 2016 included gains related to loan sales of $1.5 million.

Capital markets revenue of $6.9 million for the first quarter 2017 reflected a negligible credit valuation adjustment (CVA), compared to a negative CVA of $1.9 million for the first quarter 2016 and a positive CVA of $3.1 million for the fourth quarter 2016. Excluding the CVA impact for all periods, capital markets revenue was $6.9 million in the first quarter 2017, compared to $7.1 million for the first quarter 2016 and $5.7 million for the fourth quarter 2016. Results for the first quarter 2017 reflected higher interest rate derivative activity compared to the prior periods. Meaningful interest rate movements in the last six months and changing expectations about the timing and extent of future interest rate movements create potential for increased opportunities in the interest rate derivatives business in 2017.

The continued onboarding of new commercial clients benefited treasury management fees, which increased 13 percent from the first quarter 2016 and 4 percent from the fourth quarter 2016. Syndication fees were $6.0 million for the first quarter 2017, compared to $5.4 million for the first quarter 2016 and $5.1 million for the fourth quarter 2016. Syndication fees vary from quarter to quarter depending on the level and mix of loans originated and distributed.

Asset management revenue was $5.6 million in the first quarter 2017, increasing 18 percent from the first quarter 2016 and 6 percent from the fourth quarter 2016. Assets under management and administration were $9.8 billion at March 31, 2017, compared to $9.6 billion a year ago and $9.7 billion at December 31, 2016, primarily reflecting growth in managed assets of 4 percent from year end. Custody assets declined 2 percent from December 31, 2016, reflecting a continuation of expected outflows from a large corporate trust account.

Expenses

Noninterest expense for the first quarter 2017 increased $19.9 million from the first quarter 2016 and $14.6 million from the fourth quarter 2016. The efficiency ratio was 55.3 percent for the first quarter 2017, compared to 51.9 percent for the first quarter 2016 and 48.9 percent for the fourth quarter 2016.

Compensation expense for the first quarter 2017 increased $14.8 million from the first quarter 2016 and $14.9 million from the fourth quarter 2016, primarily due to the required accelerated expense recognition related to a portion of the annual time-vested equity awards granted in the first quarter 2017. First quarter compensation expense also included seasonally higher payroll taxes and 401(k) costs. Approximately $17 million of compensation expense recorded in the first quarter will not recur for the remainder of 2017. Second quarter compensation will also be influenced by incentive compensation plans tied to company performance and merit increases made in March. Compared to the first quarter 2016, salaries and wages expense increased $2.9 million, primarily reflecting additional hires over the last year and annual salary adjustments made during the first quarter.

Other expenses includes the provision for unfunded commitments, which was $753,000 for the first quarter 2017, compared to $595,000 for the first quarter 2016 and $1.5 million for the fourth quarter 2016.

The effective tax rate for the first quarter 2017 was 27.1 percent, compared to 35.0 percent for the first quarter 2016 and 35.9 percent for the fourth quarter 2016. The lower tax rate in the first quarter 2017 was primarily attributable to net tax benefits from the exercise and vesting of share-based compensation. Such tax benefits totaled $4.9 million, compared to $2.1 million in the first quarter 2016 and $900,000 in the fourth quarter 2016. Most of the Company's restricted stock awards vest annually in the first quarter. Additionally, the effective tax rate in the first quarter 2017 was impacted by the completion of tax examinations, which added one-time tax benefits of $2.7 million to the current quarter's results and is expected not to recur.

Credit Quality

The allowance for loan losses was $194.6 million, or 1.25 percent of total loans, at March 31, 2017, compared to $185.8 million, or 1.23 percent of total loans, at December 31, 2016. The provision for loan losses was $8.4 million for the first quarter 2017, compared to $6.4 million for the first quarter 2016 and $6.1 million for the fourth quarter 2016. Specific reserve levels increased $8.2 million, resulting from impaired loan development and higher reserves required on impaired loans from prior periods. The provision for loan loss will fluctuate from period to period depending on the level of loan growth and unevenness in credit quality due to the size of individual credits. Annualized recoveries to average loans were 0.01 percent for the first quarter 2017, compared to annualized net charge-offs to average loans of 0.05 percent for the first quarter 2016 and 0.02 percent for the fourth quarter 2016.

Nonperforming assets were 0.46 percent of total assets at March 31, 2017, compared to 0.47 percent at December 31, 2016. At March 31, 2017, nonperforming loans were $85.0 million, or 0.55 percent of total loans, compared to $83.7 million, or 0.56 percent of total loans, at December 31, 2016. OREO declined $1.3 million from December 31, 2016, to $8.9 million at March 31, 2017. Restructured loans accruing interest increased $21.9 million from year end, primarily related to three credits.

Balance Sheet

Total assets were $20.4 billion at March 31, 2017, compared to $17.7 billion at March 31, 2016, and $20.1 billion at December 31, 2016. Total loans of $15.6 billion increased 16 percent from March 31, 2016, and 4 percent from December 31, 2016. Continued client development efforts generated loans to new clients of $608.0 million for the first quarter 2017. At March 31, 2017, commercial loans represented 64 percent of total loans, and commercial real estate and construction loans represented 30 percent of total loans, relatively consistent with the prior comparative periods. Total liabilities were $18.4 billion at March 31, 2017, compared to $15.9 billion at March 31, 2016, and $18.1 billion at December 31, 2016.

Total deposits were $16.7 billion at March 31, 2017, increasing 16 percent from March 31, 2016, and 4 percent from December 31, 2016. Total brokered deposits, as defined for regulatory reporting purposes, increased $481.4 million from year end, including an increase in traditional brokered deposits and CDARS totaling $275.4 million. During the quarter, we reduced FHLB borrowing by $350.0 million.

Capital

As of March 31, 2017, the total risk-based capital ratio was 12.59 percent, the Tier 1 risk-based capital ratio was 10.83 percent, and the leverage ratio was 10.33 percent. The common equity Tier 1 ratio was 9.95 percent and the tangible common equity ratio was 9.35 percent at the end of the first quarter 2017.

Pending Transaction with CIBC

On March 30, 2017, PrivateBancorp entered into a revised merger agreement with CIBC, a leading Canadian bank. PrivateBancorp stockholders of record as of March 31, 2017 will be entitled to vote on the revised merger agreement at the special meeting of stockholders, scheduled for May 12, 2017. The completion of the transaction remains subject to the receipt of PrivateBancorp stockholder approval and CIBC's receipt of required regulatory approvals. The transaction is currently expected to close during the second quarter. During the first quarter 2017, merger-related expenses were  $1.6 million.

No Quarterly Conference Call

PrivateBancorp does not intend to conduct an earnings conference call to discuss this quarterly earnings report.

About PrivateBancorp, Inc.

PrivateBancorp, Inc., through its subsidiary The PrivateBank, delivers customized business and personal financial services to middle-market companies, as well as business owners, executives, entrepreneurs and families in all of the markets and communities it serves. As of March 31, 2017, the Company had 36 offices in 13 states and $20.4 billion in assets. The Company's website is www.theprivatebank.com.

Forward-Looking Statements

Statements made in this press release that are not historical facts may constitute forward-looking statements within the meaning of federal securities laws. Our ability to predict results or the actual effects of future plans, strategies or events is inherently uncertain. Factors which could cause actual results or conditions to differ from those reflected in forward-looking statements include:

  • the possibility that the transaction with CIBC does not close when expected or at all because required regulatory, stockholder or other approvals are not received or other conditions to the closing are not satisfied on a timely basis or at all; or the possibility that, as a result of the announcement and pendency of the proposed transaction, we experience difficulties in employee retention and/or clients or vendors seek to change their existing business relationships with us, or competitors change their strategies to compete against us, any of which may have a negative impact on our business or operations;
  • unanticipated changes in monetary policies of the Federal Reserve or significant adjustments in the pace of, or market expectations for, future interest rate changes;
  • uncertainty regarding U.S. regulatory reform proposals, geopolitical developments and the U.S. and global economic outlook that may continue to impact market conditions or affect demand for certain banking products and services;
  • unanticipated developments in pending or prospective loan transactions or greater-than-expected paydowns or payoffs of existing loans;
  • competitive pressures in the financial services industry relating to both pricing and loan structures, which may impact our growth rate;
  • unforeseen credit quality problems or changing economic conditions that could result in charge-offs greater than we have anticipated in our allowance for loan losses or changes in value of our investments;
  • availability of sufficient and cost-effective sources of liquidity or funding as and when needed;
  • unanticipated losses of one or more large depositor relationships, or other significant deposit outflows;
  • loss of key personnel or an inability to recruit appropriate talent cost-effectively;
  • greater-than-anticipated costs to support the growth of our business, including investments in technology, process improvements or other infrastructure enhancements, or greater-than-anticipated compliance or regulatory costs and burdens; or
  • failures or disruptions to, or compromises of, our data processing or other information or operational systems, including the potential impact of disruptions or security breaches at our third-party service providers.

Forward-looking statements are subject to risks, assumptions and uncertainties and could be significantly affected by many factors, including those set forth in the "Risk Factors" and "Management's Discussion and Analysis of Financial Condition and Results of Operations" sections of our Annual Report on Form 10-K for the fiscal year ended December 31, 2016, as well as those set forth in our subsequent periodic and current reports filed with the SEC. These factors should be considered in evaluating forward-looking statements and undue reliance should not be placed on our forward-looking statements. Forward-looking statements speak only as of the date they are made, and we assume no obligation to update any of these statements in light of new information, future events or otherwise unless required under the federal securities laws.

Non-U.S. GAAP Financial Measures

This press release contains both financial measures based on accounting principles generally accepted in the United States (U.S. GAAP) and non-U.S. GAAP based financial measures. We believe that presenting these non-U.S. GAAP financial measures will provide information useful to investors in understanding our underlying operational performance, our business, and performance trends and facilitates comparisons with the performance of others in the banking industry. If non-U.S. GAAP financial measures are used, the comparable U.S. GAAP financial measure, as well as the reconciliation of the non-U.S. GAAP financial measure to the comparable U.S. GAAP financial measure, can be found in this press release. These disclosures should not be viewed as a substitute for operating results determined in accordance with U.S. GAAP, nor are they necessarily comparable to non-U.S. GAAP performance measures that may be presented by other companies.

Editor's Note: Financial highlights attached. Full financial supplement available on the Company's website at investor.theprivatebank.com.

Consolidated Income Statements

(Amounts in thousands, except per share data)

(Unaudited)


1Q17


4Q16


3Q16


2Q16


1Q16

Interest Income










Loans, including fees

$

165,180



$

158,061



$

148,759



$

144,164



$

140,067


Federal funds sold and interest-bearing deposits in banks

549



422



380



335



340


Securities:










Taxable

18,436



16,891



15,283



15,158



15,210


Exempt from Federal income taxes

2,412



2,375



2,322



2,296



2,333


Other interest income

290



163



139



170



150


Total interest income

186,867



177,912



166,883



162,123



158,100


Interest Expense










Deposits

18,405



16,300



15,238



13,895



13,141


Short-term borrowings

2,324



1,118



1,070



995



230


Long-term debt

5,120



5,113



5,065



5,216



5,211


Total interest expense

25,849



22,531



21,373



20,106



18,582


  Net interest income

161,018



155,381



145,510



142,017



139,518


Provision for loan and covered loan losses

8,408



6,048



15,691



5,569



6,402


Net interest income after provision for loan and covered loan losses

152,610



149,333



129,819



136,448



133,116


Non-interest Income










Asset management

5,590



5,266



5,590



5,539



4,725


Mortgage banking

2,450



3,259



5,060



4,607



2,969


Capital markets products

6,924



8,824



5,448



5,852



5,199


Treasury management

9,247



8,849



8,617



8,290



8,186


Loan, letter of credit and commitment fees

5,551



5,312



5,293



5,538



5,200


Syndication fees

5,962



5,137



4,721



5,664



5,434


Deposit service charges and fees and other income

1,502



2,765



2,885



1,060



1,358


Net securities gains

57







580



531


Total non-interest income

37,283



39,412



37,614



37,130



33,602


Non-interest Expense










Salaries and employee benefits

73,139



58,223



55,889



55,326



58,339


Net occupancy and equipment expense

8,037



7,836



7,099



7,012



7,215


Technology and related costs

6,680



6,660



6,282



5,487



5,293


Marketing

4,770



4,580



4,587



3,925



4,404


Professional services

4,851



3,535



2,865



9,490



2,994


Outsourced servicing costs

994



930



1,379



2,052



1,840


Net foreclosed property (income) expenses

(189)



1,633



965



360



566


Postage, telephone, and delivery

852



823



818



945



840


Insurance

4,178



4,066



3,931



3,979



3,820


Loan and collection expense

1,968



2,611



1,972



2,017



1,532


Other expenses

5,129



4,947



6,133



3,623



3,650


Total non-interest expense

110,409



95,844



91,920



94,216



90,493


Income before income taxes

79,484



92,901



75,513



79,362



76,225


Income tax provision

21,532



33,353



26,621



28,997



26,673


Net income available to common stockholders

$

57,952



$

59,548



$

48,892



$

50,365



$

49,552


Per Common Share Data










Basic earnings per share

$

0.72



$

0.75



$

0.61



$

0.63



$

0.63


Diluted earnings per share

$

0.70



$

0.73



$

0.60



$

0.62



$

0.62


Cash dividends declared

$

0.01



$

0.01



$

0.01



$

0.01



$

0.01


Weighted-average common shares outstanding

79,516



79,189



79,007



78,849



78,550


Weighted-average diluted common shares outstanding

81,300



81,083



80,673



80,317



79,856


 

Consolidated Balance Sheets

(Dollars in thousands)


3/31/17


12/31/16


9/30/16


6/30/16


3/31/16


Unaudited


Audited


Unaudited


Unaudited


Unaudited

Assets










Cash and due from banks

$

166,012



$

161,168



$

166,607



$

155,292



$

133,001


Federal funds sold and interest-bearing deposits in banks

335,943



587,563



245,193



230,036



337,465


Loans held-for-sale

42,276



103,284



75,438



61,360



64,029


Securities available-for-sale, at fair value

2,112,165



2,013,525



1,961,099



1,864,636



1,831,848


Securities held-to-maturity, at amortized cost

1,801,973



1,738,123



1,633,235



1,435,334



1,456,760


Federal Home Loan Bank ("FHLB") stock

38,163



54,163



30,213



21,113



38,113


Loans – excluding covered assets, net of unearned fees

15,591,656



15,056,241



14,654,570



14,035,808



13,457,665


Allowance for loan losses

(194,615)



(185,765)



(180,268)



(168,615)



(165,356)


Loans, net of allowance for loan losses and unearned fees

15,397,041



14,870,476



14,474,302



13,867,193



13,292,309


Covered assets

21,181



22,063



23,889



25,151



25,769


Allowance for covered loan losses

(4,931)



(4,766)



(4,879)



(5,525)



(5,526)


Covered assets, net of allowance for covered loan losses

16,250



17,297



19,010



19,626



20,243


Other real estate owned, excluding covered assets

8,888



10,203



12,035



14,532



14,806


Premises, furniture, and equipment, net

45,050



46,967



44,760



43,394



41,717


Accrued interest receivable

57,316



57,986



48,512



47,209



47,349


Investment in bank owned life insurance

58,449



58,115



57,750



57,380



57,011


Goodwill

94,041



94,041



94,041



94,041



94,041


Other intangible assets

748



1,269



1,809



2,349



2,890


Derivative assets

21,511



27,965



62,094



80,995



66,406


Other assets

220,392



211,628



179,462



174,701



169,384


Total assets

$

20,416,218



$

20,053,773



$

19,105,560



$

18,169,191



$

17,667,372


Liabilities










Deposits:










Noninterest-bearing

$

5,258,941



$

5,196,587



$

4,857,470



$

4,511,893



$

4,338,177


Interest-bearing

11,449,774



10,868,642



10,631,384



10,045,501



10,126,692


  Total deposits

16,708,715



16,065,229



15,488,854



14,557,394



14,464,869


Short-term borrowings

1,195,318



1,544,746



1,233,318



1,287,934



602,365


Long-term debt

338,335



338,310



338,286



338,262



688,238


Accrued interest payable

9,590



9,063



7,953



7,967



6,630


Derivative liabilities

15,420



18,122



19,236



27,940



22,498


Other liabilities

153,849



158,628



135,559



118,544



114,781


Total liabilities

18,421,227



18,134,098



17,223,206



16,338,041



15,899,381


Equity










Common stock

79,765



79,313



79,101



78,918



78,894


Treasury stock









(4,389)


Additional paid-in capital

1,117,982



1,101,946



1,091,275



1,082,173



1,078,470


Retained earnings

793,927



736,798



678,059



629,976



580,418


Accumulated other comprehensive income, net of tax

3,317



1,618



33,919



40,083



34,598


Total equity

1,994,991



1,919,675



1,882,354



1,831,150



1,767,991


Total liabilities and equity

$

20,416,218



$

20,053,773



$

19,105,560



$

18,169,191



$

17,667,372


 

Selected Financial Data

(Amounts in thousands, except per share data)

(Unaudited)


1Q17


4Q16


3Q16


2Q16


1Q16


Selected Statement of Income Data:











Net interest income

$

161,018



$

155,381



$

145,510



$

142,017



$

139,518



Net revenue (1)(2)

$

199,546



$

196,027



$

184,331



$

180,341



$

174,337



Operating profit (1)(2)

$

89,137



$

100,183



$

92,411



$

86,125



$

83,844



Provision for loan and covered loan losses

$

8,408



$

6,048



$

15,691



$

5,569



$

6,402



Income before income taxes

$

79,484



$

92,901



$

75,513



$

79,362



$

76,225



Net income available to common stockholders

$

57,952



$

59,548



$

48,892



$

50,365



$

49,552



Per Common Share Data:











Basic earnings per share

$

0.72



$

0.75



$

0.61



$

0.63



$

0.63



Diluted earnings per share

$

0.70



$

0.73



$

0.60



$

0.62



$

0.62



Dividends declared

$

0.01



$

0.01



$

0.01



$

0.01



$

0.01



Book value (period end) (1)

$

24.93



$

24.04



$

23.64



$

23.04



$

22.29



Tangible book value (period end) (1)(2)

$

23.75



$

22.85



$

22.43



$

21.83



$

21.07



Market value (period end)

$

59.37



$

54.19



$

45.92



$

44.03



$

38.60



Book value multiple (period end)

2.38


x

2.25


x

1.94


x

1.91


x

1.73


x

Share Data:











Weighted-average common shares outstanding

79,516



79,189



79,007



78,849



78,550



Weighted-average diluted common shares outstanding

81,300



81,083



80,673



80,317



79,856



Common shares issued (period end)

80,024



79,849



79,640



79,464



79,443



Common shares outstanding (period end)

80,024



79,849



79,640



79,464



79,322



Performance Ratio:











Return on average common equity

11.95

%


12.40

%


10.40

%


11.20

%


11.40

%


Return on average assets

1.17

%


1.21

%


1.04

%


1.14

%


1.15

%


Return on average tangible common equity (1)(2)

12.63

%


13.12

%


11.04

%


11.91

%


12.16

%


Net interest margin (1)(2)

3.30

%


3.23

%


3.18

%


3.28

%


3.30

%


Fee revenue as a percent of total revenue (1)

18.78

%


20.23

%


20.54

%


20.47

%


19.16

%


Non-interest income to average assets

0.75

%


0.80

%


0.80

%


0.84

%


0.78

%


Non-interest expense to average assets

2.22

%


1.95

%


1.96

%


2.12

%


2.09

%


Net overhead ratio (1)

1.47

%


1.15

%


1.16

%


1.29

%


1.32

%


Efficiency ratio (1)(2)

55.33

%


48.89

%


49.87

%


52.24

%


51.91

%


Balance Sheet Ratios:











Loans to deposits (period end) (3)

93.31

%


93.72

%


94.61

%


96.42

%


93.04

%


Average interest-earning assets to average interest-bearing liabilities

154.27

%


155.71

%


153.16

%


151.10

%


153.64

%


Capital Ratios (period end):











Total risk-based capital (1)

12.59

%


12.49

%


12.41

%


12.42

%


12.56

%


Tier 1 risk-based capital (1)

10.83

%


10.73

%


10.64

%


10.66

%


10.76

%


Tier 1 leverage ratio (1)

10.33

%


10.28

%


10.43

%


10.56

%


10.50

%


Common equity Tier 1 (1)

9.95

%


9.83

%


9.71

%


9.70

%


9.76

%


Tangible common equity to tangible assets (1)(2)

9.35

%


9.14

%


9.40

%


9.60

%


9.51

%


Total equity to total assets

9.77

%


9.57

%


9.85

%


10.08

%


10.01

%




(1)

Refer to Glossary of Terms for definition.

(2)

This is a non-U.S. GAAP financial measure. Refer to "Non-U.S. GAAP Financial Measures" for a reconciliation from non-U.S. GAAP to U.S. GAAP.

(3)

Excludes covered assets. Refer to Glossary of Terms for definition.

 

Selected Financial Data (continued)

(Dollars in thousands)

(Unaudited)


1Q17


4Q16


3Q16


2Q16


1Q16

Additional Selected Information:










Decrease (increase) credit valuation adjustment on capital markets derivatives (1)

$



$

3,112



$

910



$

(1,033)



$

(1,904)


Salaries and employee benefits:










Salaries and wages

$

31,886



$

30,974



$

30,923



$

30,335



$

28,963


Share-based costs

16,317



5,034



4,728



4,618



6,357


Incentive compensation and commissions

14,348



17,144



15,604



15,882



13,307


Payroll taxes, insurance and retirement costs

10,588



5,071



4,634



4,491



9,712


  Total salaries and employee benefits

$

73,139



$

58,223



$

55,889



$

55,326



$

58,339


Loan and collection expense:










Loan origination and servicing expense

$

1,241



$

1,281



$

1,716



$

1,666



$

1,297


Loan remediation expense

727



1,330



256



351



235


Total loan and collection expense

$

1,968



$

2,611



$

1,972



$

2,017



$

1,532


Transaction related expenses

$

1,562



$

329



$

106



$

6,270



$


Assets under management and administration (AUMA):










Personal managed

$

2,134,372



$

2,046,758



$

2,068,772



$

2,017,797



$

1,867,572


Corporate and institutional managed

2,765,198



2,643,041



2,653,264



2,526,043



1,592,394


  Total managed assets

4,899,570



4,689,799



4,722,036



4,543,840



3,459,966


Custody assets

4,894,402



4,975,269



5,326,757



6,145,445



6,161,827


  Total AUMA

$

9,793,972



$

9,665,068



$

10,048,793



$

10,689,285



$

9,621,793




1)

Refer to Glossary of Terms for definition.

 

SOURCE PrivateBancorp, Inc.


Source: PrivateBancorp, Inc.