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 31, 2000
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)
<PAGE>
ITEM 5. OTHER EVENTS.
------------
On January 31, 2000, PrivateBancorp, Inc. (the "Company") is announcing its
earnings results for the quarter ending December 31, 1999. Attached as Exhibit
99.1 is a copy of the press release relating to the Company's earnings results,
which is incorporated herein by reference.
ITEM 7(C). EXHIBITS.
--------
Exhibit 99.1 Press Release dated January 31, 2000.
<PAGE>
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 31, 2000 By: /s/ RALPH B. MANDELL
----------------------------------
Ralph B. Mandell
Chairman of the Board, President
and Chief Executive Officer
<PAGE>
INDEX TO EXHIBITS
-----------------
Exhibit
- -------
99.1 Press Release dated January 31, 2000.
FOR FURTHER INFORMATION:
Don Roubitchek, CFO
PrivateBancorp, Inc.
312-683-7126
For Immediate Release
PRIVATEBANCORP POSTS STRONG FOURTH QUARTER EARNINGS
Earnings excluding St. Louis start-up costs, up 34 percent over
fourth quarter 1998
Chicago, IL. January 31, 2000--- PrivateBancorp, Inc. (NASDAQ: PVTB) today
reported that net income for the fourth quarter, ended December 31, 1999, was
$977,000 or $0.20 per fully diluted share. Excluding costs associated with
start-up of operations in St. Louis, earnings for the fourth quarter ended
December 31, 1999 were $1.2 million, which represents an increase of 34 percent
over 1998 fourth quarter net income of $892,000. Fourth quarter earnings per
fully diluted share were $0.25 in 1998, the same level as in 1999, excluding the
St. Louis start up costs. The start up costs related to the previously announced
entry in the St. Louis market totaled approximately $214,000 (net of tax).
Net income for the year ended December 31, 1999 was $2.9 million, or $0.69
per fully diluted share, compared to $3.0 million or $0.86 per fully diluted
share for the year ended December 31, 1998. Excluding the previously announced
Towne Square acquisition-related charge (incurred in the third quarter) and the
St. Louis start-up costs, 1999 earnings were $4.5 million, an increase of 50
percent over 1998 net income. 1999 earnings per fully diluted share were $1.07,
a 24 percent increase over 1998 earnings per fully diluted share.
"1999 was an important year for PrivateBancorp, Inc.," said Ralph B.
Mandell, Chairman, President, and CEO. "We have completed a number of
initiatives, including our initial public offering and the Towne Square St.
Charles acquisition, and announced others, such as the Johnson Bank Illinois
acquisition and our entry into the St. Louis market, which lay the groundwork
for our continued growth in the year 2000 and beyond."
1
<PAGE>
"This year's increase in earnings, which resulted from strong loan, deposit
and trust asset growth in our existing market footprint, is a reflection of both
the attractiveness of our business strategy and the ability of our team to
execute that strategy in Chicago's competitive high net worth market. These
results give us confidence that our expansion into additional, high net worth
markets on Chicago's North Shore and in the far western suburbs, as well as our
entry into the St. Louis market, will position us for increased profitability
for PrivateBancorp in the years to come," said Mandell.
In conjunction with its efforts to open a de novo bank in the St. Louis
market, the Company incurred start-up expenses of $214,000, (net of tax) during
the fourth quarter of 1999. The $214,000 start-up expenses represent the initial
costs of attracting an experienced management team, and related fees and
expenses incurred in connection with establishing a new federal savings bank, to
be known as The PrivateBank (St. Louis).
Net interest income totaled $4.3 million in the fourth quarter of 1999, an
increase of 30 percent over the fourth quarter of 1998. Average earning assets
during the period were $459.9 million, an increase of 25 percent over the prior
year fourth quarter. Net interest margin averaged 3.85 percent in the fourth
quarter of 1999, versus 3.50 percent in the prior year fourth quarter. The
increase in margin is attributable primarily to the deployment of the new
capital raised in the June 30, 1999 initial public offering and to the increase
in net loans as a percentage of earning assets.
Non-interest income for the quarter grew to $534,000, 54 percent higher
than in the fourth quarter of 1998, primarily due to a 70 percent increase in
trust fee income. Trust assets under administration totaled $730 million at
December 31, 1999 compared to $612 million at December 31, 1998.
2
<PAGE>
Non-interest expense for the fourth quarter totaled $3.2 million, an
increase of $1.0 million, or 47 percent, over the fourth quarter of 1998.
Excluding expenses associated with the St. Louis start-up, non-interest expense
increased by $0.7 million, or 33 percent. The increase in expense is primarily
attributable to staffing and other operating expenses associated with our new
St. Charles location, an increase in expenses inherent in operating as a public
company and higher levels of general operating expenses in line with the
overall growth of the organization.
Loan growth during 1999 was extremely strong. Net loans outstanding
increased to $392.8 million at December 31, 1999, an increase of 41 percent over
the $278.6 million in net loans outstanding at December 31, 1998. At December
31, 1999, nonperforming loans as a percentage of loans were 0.21 percent, versus
0.36 percent at December 31, 1998. Charge-offs totaled $6,000 in the quarter
ended December 31, 1999 versus zero in the year earlier period. The provision
for loan losses was $437,000 in the fourth quarter of 1999, versus $ 90,000 in
the fourth quarter of 1998; the increased provision primarily reflects the risk
inherent in a higher level of loans outstanding.
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 through its bank
subsidiary, The PrivateBank and Trust Company. The Company, which has assets of
$519 million at December 31, 1999, operates offices in Chicago, Oak Brook and
Wilmette, Illinois, and opened its St. Charles, Illinois office in January 2000.
On October 4, 1999, PrivateBancorp, Inc. entered into a definitive
agreement to acquire Johnson Bank Illinois, a unit of Johnson International,
Racine, Wisconsin. Johnson Bank Illinois, with roughly $113 million in assets at
December 31, 1999, has locations on Chicago's North Shore in Lake Forest and
Winnetka. Pending regulatory approval, the acquisition of Johnson Bank Illinois
is expected to be completed in February 2000.
3
<PAGE>
On November 18, 1999, PrivateBancorp, Inc. announced that it had filed an
application to charter a new federal savings bank, to be known as The
PrivateBank (St. Louis). Pending regulatory approval of this new subsidiary, our
existing bank subsidiary, The PrivateBank and Trust Company has opened a loan
production office in St. Louis in order to develop credit business.
###
===============================================================================
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, fluctuations in market rates of interest and loan and deposit
pricing, general economic conditions in the greater Chicago metropolitan area,
legislative or regulatory changes, adverse developments in the Company's loan or
investment portfolios, competition, unforeseen difficulties or delays relating
to the pending acquisition of Johnson Bank Illinois, unanticipated costs or
lower than expected business levels relating to the Company's establishment of a
St. Charles, Illinois office or unanticipated delays or costs relating to the
establishment of The PrivateBank (St. Louis), and the possible dilutive
effect of potential acquisitions or expansion. These risks and uncertainties
should be considered in evaluating forward-looking statements and undue reliance
should not be placed on such statements.
Editors Note: Financial highlights attached.
4
<PAGE>
PRIVATEBANCORP, INC.
CONSOLIDATED BALANCE SHEETS
<TABLE>
<CAPTION>
DECEMBER 31, 1999 DECEMBER 31, 1998
----------------- -----------------
(DOLLARS IN THOUSANDS)
<S> <C> <C>
ASSETS
Cash and due from banks...................... $ 14,940 $ 11,895
Short term investments....................... 29,243 3,619
Investment securities-AFS.................... 71,134 116,891
Loans, net of unearned income................ 397,277 281,965
-------- --------
Allowance for loan losses.................... (4,510) (3,410)
-------- --------
Net loans.................................... $392,767 $278,555
-------- --------
Premises and equipment....................... 2,028 1,588
Other assets................................. 8,585 3,760
-------- --------
TOTAL ASSETS................................. $518,697 $416,308
======== ========
LIABILITIES
Non-Interest bearing deposits................ 36,771 39,490
Interest bearing deposits.................... 416,321 325,504
-------- --------
Total deposits............................... $453,092 $364,994
-------- --------
Borrowings................................... 15,000 20,000
Other liabilities............................ 3,525 2,040
-------- --------
TOTAL LIABILITIES............................ $471,617 $387,034
======== ========
SHAREHOLDERS' EQUITY
Common stock and surplus..................... 44,351 25,705
Retained earnings............................ 7,425 4,913
Accumulated other comprehensive (2,812) 150
income....................................
Deferred compensation........................ (759) (544)
Loans to executive officers.................. (1,125) (950)
-------- --------
TOTAL SHAREHOLDERS' EQUITY................... $ 47,080 $ 29,274
======== ========
TOTAL LIABILITIES AND SHAREHOLDERS' $518,697 $416,308
EQUITY.................................... ======== ========
BOOK VALUE PER SHARE......................... $10.26 $8.53
</TABLE>
<PAGE>
PRIVATEBANCORP, INC.
CONSOLIDATED STATEMENTS OF INCOME
<TABLE>
<CAPTION>
THREE MONTHS ENDED TWELVE MONTHS ENDED
DECEMBER 31, DECEMBER 31,
---------------------- -----------------------
1999 1998 1999 1998
------ ------ ------- -------
(DOLLARS IN THOUSANDS EXCEPT PER SHARE DATA)
<S> <C> <C> <C> <C>
INTEREST INCOME
Interest and fees on loans................ $7,737 $5,141 $26,597 $19,619
Interest on short term investments........ 115 373 330 2,181
Interest on investment securities......... 1,088 1,413 5,141 3,492
------ ------ ------- -------
TOTAL INTEREST INCOME..................... $8,940 $6,927 $32,068 $25,292
------ ------ ------- -------
INTEREST EXPENSE
Interest deposits......................... 4,396 3,605 15,674 13,293
Interest on borrowings.................... 257 19 931 19
------ ------ ------- -------
TOTAL INTEREST EXPENSE.................... $4,653 $3,624 $16,605 $13,312
------ ------ ------- -------
NET INTEREST INCOME 4,287 3,303 15,463 11,980
Provision for loan losses................. 437 90 1,208 362
------ ------ ------- -------
NET INTEREST INCOME AFTER PROVISION....... $3,850 $3,213 $14,255 $11,618
------ ------ ------- -------
NON-INTEREST INCOME
Banking and trust services................ 535 348 1,947 1,281
Security (losses) gains................... (1) (2) 57 40
------ ------ ------- -------
TOTAL NON-INTEREST INCOME................. $ 534 $ 346 $ 2,004 $ 1,321
------ ------ ------- -------
NON-INTEREST EXPENSE
Salaries and benefits..................... 1,753 1,123 5,156 4,077
Other operating expenses.................. 1,463 1,060 5,631 4,013
Towne square acquisition.................. -- -- 1,300 --
------ ------ ------- -------
TOTAL NON-INTEREST EXPENSE................ $3,216 $2,183 $12,087 $ 8,090
------ ------ ------- -------
INCOME BEFORE INCOME TAXES................ 1,168 1,376 4,172 4,849
Income tax expense........................ 191 484 1,257 1,839
------ ------ ------- -------
NET INCOME................................ $ 977 $ 892 $ 2,915 $ 3,010
====== ====== ======= =======
WEIGHTED AVERAGE SHARES O/S............... 4,585,109 3,396,924 3,988,363 3,313,092
DILUTED AVERAGE SHARES O/S................ 4,794,770 3,629,958 4,230,103 3,514,528
EARNINGS PER SHARE
Basic..................................... $0.21 $0.26 $0.73 $0.91
Diluted................................... $0.20 $0.25 $0.69 $0.86
</TABLE>
<PAGE>
PRIVATEBANCORP, INC.
KEY FINANCIAL DATA
FOURTH QUARTER 1999
<TABLE>
<CAPTION>
4Q99 3Q99 2Q99 1Q99 4Q98
---- ---- ---- ---- ----
(DOLLARS IN THOUSANDS EXCEPT PER SHARE DATA)
<S> <C> <C> <C> <C> <C>
KEY STATISTICS (IN 000'S EXCEPT PER SHARE
DATA)
Earnings before special charges(1)......... $1,191 $1,180 $1,112 $1,027 $ 892
Special charges (net of tax)............... $ 214 $1,381 -- -- --
Net income................................. $ 977 $ (201) $1,112 $1,027 $ 892
Earnings before special charges per
fully diluted share..................... $ 0.25 $ 0.25 $ 0.30 $ 0.28 $ 0.25
Special charges (per fully diluted
share).................................. $(0.05) $(0.29) $ -- $ -- $ --
Diluted earnings per share................. $ 0.20 $(0.05) $ 0.30 $ 0.28 $ 0.25
Basic earnings per share................... $ 0.21 $(0.05) $ 0.32 $ 0.30 $ 0.26
Return on average total assets
(before special charges)................ 0.98% 1.04% 1.02% 0.97% 0.89%
Return on average total equity
(before special charges)................ 10.06% 10.17% 14.82 13.84 12.47
Net interest margin........................ 3.85% 3.87% 3.61% 3.57% 3.50%
Yield on average earning assets............ 7.83% 7.63% 7.39% 7.40% 7.45%
Cost of average paying liabilities......... 4.72% 4.46% 4.31% 4.38% 4.47%
Efficiency ratio excluding special charges
(taxable equivalent).................... 57.5% 57.5% 57.2% 54.9% 60.9%
COMMON STOCK INFORMATION
Book value per share....................... $10.26 $10.11 $8.68 $ 8.71 $ 8.50
Dividends paid per share................... 0.025 0.025 0.025 0.025 0.02
Outstanding shares at end of period........ 4,590,332 4,584,092 3,451,824 3,451,824 3,431,424
NUMBER OF SHARES USED TO COMPUTE:
Basic earnings per share................... 4,585,109 4,460,280 3,451,824 3,436,524 3,396,924
Diluted earnings per share................. 4,794,770 4,717,660 3,705,116 3,683,388 3,629,958
CAPITAL RATIOS
Total equity to total assets............... 9.08% 10.30% 6.83% 6.97% 7.02%
Total risk-based capital ratio............. 13.96% 15.22% 10.77% 11.21% 11.26%
Tier-1 risk based capital ratio............ 12.84% 14.09% 9.63% 10.05% 10.13%
Leverage ratio............................. 10.77% 11.19% 7.63% 7.53% 7.92%
</TABLE>
- --------
(1) Special charges represent one-time costs associated with the third
quarter acquisition of Towne Square and the fourth quarter start-up
costs for St. Louis.
<PAGE>
PRIVATEBANCORP, INC.
KEY FINANCIAL DATA
FOURTH QUARTER 1999
(CONTINUED)
<TABLE>
<CAPTION>
4Q99 3Q99 2Q99 1Q99 4Q98
---- ---- ---- ---- ----
(DOLLARS IN THOUSANDS EXCEPT PER SHARE DATA)
<S> <C> <C> <C> <C> <C>
SUMMARY INCOME STATEMENT
INTEREST INCOME
Loans, including fees...................... $7,737 $7,006 $6,218 $5,636 $5,141
Federal funds sold and interest
bearing deposits........................ 115 134 33 48 373
Securities................................. 1,088 1,189 1,294 1,570 1,413
------ ------ ------ ------ ------
TOTAL INTEREST INCOME....................... 8,940 8,329 7,545 7,254 6,927
INTEREST EXPENSE............................ 4,653 4,166 3,948 3,838 3,624
------ ------ ------ ------ ------
NET INTEREST INCOME......................... 4,287 4,163 3,597 3,416 3,303
Provision for loan loss.................... 437 273 213 285 90
------ ------ ------- ------ ------
NET INTEREST INCOME AFTER PROVISION
FOR LOAN LOSS.............................. 3,850 3,890 3,384 3,131 3,213
------ ------ ------ ------ ------
NON-INTEREST INCOME
Banking and trust services................. 535 504 512 396 348
Securities (losses) gains.................. (1) 8 4 46 (2)
------ ------ ------ ------ ------
TOTAL NON-INTEREST INCOME................... 534 512 516 442 346
------ ------ ------ ------ ------
NON-INTEREST EXPENSE
Salaries and employee benefits............. 1,753 1,309 1,088 1,115 1,123
Towne Square acquisition................... -- 1,300 -- -- --
Occupancy expense.......................... 437 401 373 352 368
Other non-interest expense................. 1,026 1,227 918 788 692
------ ------ ------ ------ ------
TOTAL NON-INTEREST EXPENSE.................. 3,216 4,237 2,379 2,255 2,183
------ ------ ------ ------ ------
Income before income taxes................. 1,168 165 1,521 1,318 1,376
Provision for income taxes................. 191 366 409 291 484
------ ------ ------ ------ ------
NET INCOME (LOSS)........................... $ 977 $ (201) $1,112 $1,027 $ 892
====== ====== ====== ====== ======
</TABLE>
<PAGE>
KEY FINANCIAL DATA
FOURTH QUARTER 1999
(CONTINUED)
<TABLE>
<CAPTION>
4Q99 3Q99 2Q99 1Q99 4Q98
---- ---- ---- ---- ----
(DOLLARS IN THOUSANDS EXCEPT PER SHARE DATA)
<S> <C> <C> <C> <C> <C>
CREDIT QUALITY
Ending allowance for loan losses........... $4,510 $4,079 $3,903 $3,695 $3,410
Non-performing assets:
Loans delinquent over 90 days........... 223 135 710 361 1,016
Nonaccrual loans........................ 600 569 94 -- --
Other real estate....................... -- -- -- -- --
------ ------ ------ ------ ------
TOTAL NON-PERFORMING ASSETS................. $ 823 $ 704 $ 804 $ 361 $1,016
====== ====== ====== ====== ======
Loans charged-off.......................... 6 97 5 -- --
Recoveries................................. -- -- -- -- --
------ ------ ------ ------ ------
Net charge-offs............................ $ 6 $ 97 $ 5 -- --
====== ====== ====== ------ ------
Provision for loan losses.................. $ 437 $ 273 $ 213 $ 285 $ 90
====== ====== ====== ====== ======
KEY RATIOS:
Net charge-offs to average loans........... 0.002% 0.11% 0.002% -- --
Total non-performing loans to total
loans................................... 0.21% 0.20% 0.24% 0.12% 0.36%
Total non-performing assets to total
assets.................................. 0.16% 0.16% 0.18% 0.08% 0.24%
LOAN LOSS RESERVE SUMMARY
Balance at beginning of period............. $4,079 $3,903 $3,695 $3,410 $3,320
Provision.................................. 437 273 213 285 90
Net charge-offs............................ 6 97 5 -- --
------ ------ ------ ------ ------
Ending allowance........................... $4,510 $4,079 $3,903 $3,695 $3,410
====== ====== ====== ====== ======
NET LOAN CHARGE-OFFS:
Commercial real estate..................... -- -- -- -- --
Residential real estate.................... -- -- -- -- --
Commercial................................. -- -- -- -- --
Personal................................... 6 97 5 -- --
Home equity................................ -- -- -- -- --
Construction............................... -- -- -- -- --
Total net loan charge-offs................. $ 6 $ 97 $ 5 -- --
====== ====== ====== ====== ======
</TABLE>
<PAGE>
PRIVATEBANCORP, INC.
BALANCE SHEETS
FOR THE PERIODS ENDING
<TABLE>
<CAPTION>
DECEMBER 31, 1999 SEPTEMBER 30, 1999 JUNE 30, 1999 MARCH 31, 1999 DECEMBER 31, 1998
----------------- ------------------ ------------- -------------- -----------------
(DOLLARS IN THOUSANDS)
<S> <C> <C> <C> <C> <C>
ASSETS
- ------
Cash and due from banks ............ $ 14,940 $ 14,284 $ 9,896 $ 8,220 $ 11,895
Short term investments.............. 29,243 1,911 995 7,759 3,619
Investment securities .............. 71,134 77,269 89,026 105,136 116,891
Loans, net of unearned discount .... 397,277 352,236 335,306 307,766 281,965
Less: Allowance for loan losses .. (4,510) (4,079) (3,903) (3,695) (3,410)
-------- -------- -------- -------- --------
Net loans ......................... $392,767 $348,157 $331,403 $304,071 $278,555
-------- -------- -------- -------- --------
Premises and equipment ............. 2,028 1,462 1,477 1,528 1,588
Other assets ....................... 8,585 6,755 5,372 4,341 3,760
-------- -------- -------- -------- --------
Total Assets ................... $518,697 $449,838 $438,169 $431,055 $416,308
======== ======== ======== ======== ========
LIABILITIES AND STOCKHOLDERS' EQUITY
- ------------------------------------
Non-interest bearing deposits ...... $ 36,771 $ 35,939 $ 30,462 $ 28,177 $ 39,490
Interest bearing demand deposits ... 33,400 26,456 30,091 31,795 26,508
Savings and money market deposits .. 204,068 187,410 176,482 180,871 170,713
Time deposits ...................... 178,853 136,352 137,997 143,611 128,283
-------- -------- -------- -------- --------
Total deposits .................... $453,092 $386,157 $375,032 $384,454 $364,994
Funds borrowed ..................... 15,000 15,000 31,000 10,000 20,000
Other liabilities .................. 3,525 2,330 2,171 6,547 2,040
-------- -------- -------- -------- --------
Total liabilities ................. $471,617 $403,487 $408,203 $401,001 $387,034
Stockholders' equity ............... 47,080 46,351 29,966 30,054 29,274
-------- -------- -------- -------- --------
Total Liabilities and .......... $518,697 $449,838 $438,169 $431,055 $416,308
Stockholders' Equity ======== ======== ======== ======== ========
</TABLE>
<PAGE>
PRIVATEBANCORP, INC.
AVERAGE QUARTERLY BALANCE SHEETS
FOR THE PERIODS ENDING
<TABLE>
<CAPTION>
DECEMBER 31, 1999 DECEMBER 31, 1998
----------------- -----------------
(DOLLARS IN THOUSANDS)
<S> <C> <C>
AVERAGE ASSETS
- --------------
Cash and due from banks................................ $ 14,170 $ 11,021
Short-term investments................................. 8,767 36,879
Investment securities.................................. 74,309 82,828
Loans, net of unearned discount........................ 376,843 248,461
Less: Allowance for loan losses....................... (4,250) (3,337)
-------- --------
Net loans.............................................. 372,593 245,124
-------- --------
Premises and equipment................................. 1,535 1,681
Other assets........................................... 9,320 4,518
-------- --------
Total average assets................................... $480,694 $382,051
======== ========
AVERAGE LIABILITIES AND STOCKHOLDERS' EQUITY
- --------------------------------------------
Non-interest bearing deposits.......................... 37,498 34,125
Interest bearing demand deposits....................... 29,941 23,097
Savings and money market deposits...................... 195,040 168,594
Time deposits.......................................... 148,603 124,387
-------- --------
Total average deposits................................. 411,082 350,203
Funds borrowed......................................... 17,731 1,099
Other liabilities...................................... 4,924 3,181
-------- --------
Total average liabilities.............................. 433,737 354,483
Average Stockholders' equity........................... 46,957 27,568
-------- --------
Total Average Liabilities and Stockholders' Equity..... $480,694 $382,051
======== ========
</TABLE>
<PAGE>
PRIVATEBANCORP, INC.
SUMMARY CONSOLIDATED FINANCIAL DATA
<TABLE>
<CAPTION>
YEAR ENDED DECEMBER 31,
-----------------------------------------------------
1999 1998 1997 1996 1995
------- ------- ------- ------- -------
(DOLLARS IN THOUSANDS EXCEPT PER SHARE DATA)
<S> <C> <C> <C> <C> <C>
SELECTED STATEMENT OF INCOME DATA:
Interest income:
Loans, including fees................................... $26,597 $19,619 $16,729 $12,152 $10,053
Federal funds sold and interest-bearing deposits........ 330 2,181 875 1,392 1,149
Securities.............................................. 5,141 3,492 2,519 2,396 1,700
------- ------- ------- ------- -------
Total interest income................................ $32,068 $25,292 $20,123 $15,940 $12,902
------- ------- ------- ------- -------
Interest Expense:
Interest-bearing demand deposits........................ 604 487 377 305 276
Savings and money market deposit accounts............... 7,671 6,651 5,880 4,613 3,484
Other time deposits..................................... 7,399 6,155 3,821 2,973 2,620
Funds borrowed.......................................... 931 19 3 143 50
------- ------- ------- ------- -------
Total interest expense............................... $16,605 $13,312 $10,081 $ 8,034 $ 6,430
------- ------- ------- ------- -------
Net interest income.................................. 15,463 11,980 10,042 7,906 6,472
Provision for loan losses............................... 1,208 362 603 524 930
------- ------- ------- ------- -------
Net interest income after provision for loan losses.. $14,255 $11,618 $ 9,439 $ 7,382 $ 5,542
------- ------- ------- ------- -------
Non-interest income:
Banking and trust services.............................. 1,947 1,281 1,210 911 674
Securities gains........................................ 57 40 -- -- --
------- ------- ------- ------- -------
Total non-interest income............................ $ 2,004 $ 1,321 $ 1,210 $ 911 $ 674
------- ------- ------- ------- -------
Non-interest expense:
Salaries and employee benefits.......................... 5,156 4,077 3,902 3,411 2,749
Occupancy expense, net.................................. 1,563 1,379 1,274 990 946
Data processing......................................... 478 508 396 334 282
Marketing............................................... 692 567 500 424 296
Amortization of organization costs...................... -- -- -- 23 280
Professional fees....................................... 1,295 561 448 326 284
Insurance............................................... 214 134 115 82 238
Towne Square acquisition................................ 1,300 -- -- -- --
Other expense........................................... 1,389 864 627 508 434
------- ------- ------- ------- -------
Total non-interest expense........................... $12,087 $ 8,090 $ 7,262 $ 6,098 $ 5,509
------- ------- ------- ------- -------
Income before income taxes........................... 4,172 4,849 3,387 2,195 707
Income tax provision.................................... 1,257 1,839 1,242 762 (403)
------- ------- ------- ------- -------
Net income........................................ $ 2,915 $ 3,010 $ 2,145 $ 1,433 $ 1,110
------- ------- ------- ------- -------
PER SHARE DATA:
Basic earnings.......................................... $0.73 $0.91 $0.69 $0.49 $0.39
Diluted earnings........................................ $0.69 $0.86 $0.65 $0.47 $0.38
Diluted earnings per share before special charges (1)... $1.07 $0.86 $0.65 $0.47 $0.38
Dividends............................................... $0.10 $0.08 $0.07 $0.07 $0.03
END OF PERIOD:
Book value.............................................. $10.26 $8.53 $7.67 $6.84 $6.47
Tangible Book Value..................................... $10.26 $8.53 $7.67 $6.84 $6.47
Market Value............................................ $13.375 -- -- -- --
Diluted Earnings multiple............................... 19.38 -- -- -- --
Diluted earnings multiple before special charges........ 12.50 -- -- -- --
Book value multiple..................................... 1.30 -- -- -- --
- --------------
(1) Special charges represent one-time costs associated with the third
quarter acquisition of Towne Square and the fourth quarter start-up costs
for St. Louis.
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<PAGE>
PRIVATEBANCORP, INC.
SUMMARY CONSOLIDATED FINANCIAL DATA
(CONTINUED)
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<CAPTION>
YEAR ENDED DECEMBER 31,
------------------------------------------------------
1999 1998 1997 1996 1995
-------- -------- -------- -------- --------
(DOLLARS IN THOUSANDS EXCEPT PER SHARE DATA)
<S> <C> <C> <C> <C> <C>
SELECTED FINANCIAL CONDITION DATA
(AT END OF PERIOD):
Total securities............................. $ 71,134 $116,891 $ 65,383 $ 44,617 $ 38,296
Total loans.................................. 397,277 281,965 218,495 171,343 126,069
Total assets................................. 518,697 416,308 311,872 246,734 196,917
Total deposits............................... 453,092 364,994 285,773 222,571 176,868
Funds borrowed .............................. 15,000 20,000 -- 3,000 700
Total stockholders' equity................... 47,080 29,274 24,688 20,222 18,445
Trust assets under administration ........... $729,904 $611,650 $469,646 $328,662 $212,456
SELECTED FINANCIAL RATIOS AND OTHER DATA:
Performance Ratios:
Net interest margin(1)....................... 3.79% 3.61% 4.01% 3.73% 3.95%
Net interest spread(2)....................... 3.15 2.98 3.31 3.03 3.16
Non-interest income to average assets........ 0.45 0.37 0.45 0.42 0.40
Non-interest expense to average assets....... 2.71 2.29 2.71 2.79 3.31
Net overhead ratio(3)........................ 2.26 1.91 2.26 2.38 2.90
Efficiency ratio(4).......................... 65.76 60.82 64.53 69.17 77.09
Efficiency ratio before special charges...... 57.52 60.82 64.53 69.17 77.09
Return on average assets(5).................. 0.65 0.85 0.80 0.66 0.67
Return on average assets before special
charges................................... 1.01 0.85 0.80 0.66 0.67
Return on average equity(6).................. 7.66 11.27 9.49 7.38 6.22
Return on average equity before special
charges................................... 11.86 11.27 9.49 7.38 6.22
Dividend payout ratio........................ 13.78 8.74 10.13 12.88 8.03
FTE.......................................... 91.5 71.5 66.5 59.0 47.5
Average FTE's................................ 79.0 71.0 63.0 54.1 46.5
ASSET QUALITY RATIOS:
Non-performing loans to total loans.......... 0.21 0.36 0.24 0.65 1.90
Allowance for possible loan losses to:
Total loans............................... 1.14 1.21 1.40 1.43 1.55
Non-performing loans...................... 548 336 578 220 82
Net charge-offs to average total loans....... 0.03 -- -- 0.02 --
Non-performing assets to total assets........ 0.16 0.24 0.17 0.45 1.22
BALANCE SHEET RATIOS:
Loans to deposits............................ 87.7 77.3 76.5 77.0 71.3
Average interest-earning assets to
average interest-bearing liabilities...... 116.3 116.4 117.7 118.6 120.7
CAPITAL RATIOS:
Total equity to total assets ................ 9.08 7.03 7.92 8.20 9.37
Total risk-based capital ratio............... 13.96 11.53 11.75 12.21 14.56
Tier 1 risk-based capital ratio.............. 12.84 10.40 10.50 10.96 13.31
Leverage ratio............................... 10.77 7.88 8.70 8.71 9.76
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(1) Net interest income tax equivalent divided by average interest-earning
assets.
(2) Yield on average interest-earning assets less rate on average
interest-bearing liabilities.
(3) Non-interest expense less non-interest income divided by average total assets.
(4) Non-interest expense divided by the sum of net interest income plus non-interest income.
(5) Net income divided by average total assets.
(6) Net income divided by average equity.
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