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PrivateBancorp Inc. Reports Operating Results (10-K)

March 01, 2011 | About:
10qk

10qk

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PrivateBancorp Inc. (PVTB) filed Annual Report for the period ended 2010-12-31.

Privatebancorp Inc. has a market cap of $1.02 billion; its shares were traded at around $14.32 with and P/S ratio of 1.7. The dividend yield of Privatebancorp Inc. stocks is 0.3%.Hedge Fund Gurus that owns PVTB: Jim Simons of Renaissance Technologies LLC. Mutual Fund and Other Gurus that owns PVTB: John Rogers of Ariel Capital Management, NWQ Managers of NWQ Investment Management Co, Mario Gabelli of GAMCO Investors.

Highlight of Business Operations:

The aggregate market value of the registrants outstanding voting and non-voting common stock held by non-affiliates on June 30, 2010, determined using a per share closing price on that date of $11.08, as quoted on The Nasdaq Stock Market, was $644,866,892.

Beginning in late 2007, we hired a team of experienced middle market bankers and, under the leadership of our current chief executive officer, initiated a strategic plan to transform the organization into a leading middle market commercial bank. Over the past three years, we added over 800 new client relationships, shifted the composition of our loan portfolio from 19% commercial and industrial and 66% commercial real estate and construction at December 31, 2007 to 54% commercial and industrial and 37% commercial real estate and construction at December 31, 2010 and more than doubled our total assets from $5.0 billion at December 31, 2007 to $12.5 billion at December 31, 2010. During this period, we increased total loans from $4.2 billion at December 31, 2007 to $9.1 billion at December 31, 2010 and increased total deposits from $3.8 billion at December 31, 2007 to $10.5 billion at December 31, 2010. To support the growth and capital requirements of the organization, since December 31, 2007, we have raised approximately $560.1 million of voting and nonvoting common stock, $143.8 million of trust preferred securities, and $243.8 million of preferred stock issued to the U.S. Department of the Treasury (the Treasury) under the Troubled Asset Relief Program Capital Purchase Program.

Illinois Commercial and Specialty Banking The Illinois Commercial group targets primarily Illinois-based clients with $10 million to $2 billion in revenue. The specialty banking groups healthcare, architecture, engineering and construction, asset-based lending, and security alarm finance, also market primarily to Illinois-based clients but many of which businesses have a national scope. In each of our specialty groups, we employ bankers with many years of experience serving these niche clients.

National Commercial Banking The National Commercial Banking group manages middle market commercial banking teams in Atlanta, Cleveland, Denver, Des Moines, Detroit, Kansas City, Milwaukee, Minneapolis, and St. Louis. National Commercial Banking targets clients with $25 million to $2 billion in revenue in these markets.

Community Banking Community Banking targets Illinois personal and small business clients with up to $250,000 in investable assets, lending needs of up to $3.5 million, and business revenues of up to $10 million. Through a network of 19 branch locations in and around Chicago, Community Banking provides personal and business banking and investing services including checking, savings, money market, certificates of deposit (CDs), mortgages, home equity loans and lines of credit, business-specific banking and other tailored solutions. Community Banking also originates mortgages, a majority of which are sold into the secondary market, through mortgage teams located in the Chicago, St. Louis, and Detroit markets. We have plans to hire additional mortgage professionals to expand our mortgage origination activity. The successful implementation of our long term strategy to develop a strong community banking platform will provide us with an additional source of client deposits and a more diversified deposit mix. As of December 31, 2010, 14% of our total deposits were originated by Community Banking.

As a result of our commercial middle market strategy, our lending activities tend to involve large credit relationships. At December 31, 2010, we had loans outstanding totaling $1.2 billion, or 13% of our loan portfolio at year-end, to 79 distinct borrowers with credit commitments in excess of $25 million. Many of these credit commitments include lines of credit that are unused or to date have been only partially drawn. Based on information we use to evaluate aggregate credit exposures to related borrowers for internal risk management purposes, we estimate that currently about one third of our total credit commitments (including loans outstanding and unfunded commitments) involve client relationships that have aggregate credit exposures greater than $25 million. We generally aggregate obligors in evaluating credit exposure when, for example, the credit agreements include shared guarantor support, cross collateralization or cross default provisions or the obligors are under common control. Of our largest credit exposures, we had a total of approximately $660 million in outstanding commitments at December 31, 2010, involving aggregate credit exposures to related borrowers greater than $50 million which related to 11 different client relationships.

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