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Home > BizTimes Daily > Archives > July 23, 2007
Soft real estate market takes toll on PrivateBancorp
Published July 23, 2007 - BizTimes Daily
PrivateBancorp Inc., the Chicago-based parent company of The PrivateBank-Milwaukee, today reported second quarter net income of $8.8 million, or 40 cents per share, which was down from $10.0 million, or .47 cents per diluted share, in the same period a year ago.
"The year-over year-decrease in our net interest margin and the increase in non-performing assets negatively affected our operating results. We have been proactive in identifying our non-performing assets, and we are committed to improving our credit quality," said Ralph Mandell, chairman, president and chief executive officer of the company.
PrivateBancorp's non-performing assets to total assets were 0.70 percent at June 30, 2007, compared with 0.09 percent a year earlier. Of the $31.3 million in total non-performing assets, 45 percent are from the Chicago market, 32 percent are from St. Louis, 17 percent are from Michigan and 6 percent are from Georgia. None of the loans in its Wisconsin or Kansas City markets are non-performing. Of total non-performing assets, 33 percent are commercial real estate, 24 percent are commercial and industrial, 28 percent are construction loans and the remaining 15 percent are residential real estate and personal loans.
"We remain focused and optimistic about the growth prospects for the company and the scalability of our unique approach to private banking, especially given the potential consolidation of the Chicago market. Also, we are encouraged by the expansion of our client base and resultant loan growth in our Atlanta, Kansas City and Milwaukee markets," Mandell said. "We have made and continue to make significant investments in our infrastructure and new hires, and we expect these investments to enhance stockholder value in the long term."
