PrivateBancorp, Inc. (NASDAQ:PVTB) Q2 2015 Earnings Conference Call - Final Transcript

Jul 16, 2015 • 11:00 am ET


PrivateBancorp, Inc. (NASDAQ:PVTB) Q2 2015 Earnings Conference Call - Final Transcript


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Good morning and welcome to PrivateBancorp, Inc.'s Second Quarter 2015 Earnings Call. At this time, I would like to inform you that this conference call is being recorded and that all participants are in a listen-only mode. At the request of the Company, we will open the conference up for questions and answers after the presentation. Please note that the company will be taking questions from individuals and companies that have been invited to attend the live portion of the conference call.

I will now turn the conference over to Jeanette O'Loughlin, Head of Investor Relations.

Jeanette O'Loughlin

Good morning and welcome to PrivateBancorp's second quarter 2015 earnings conference call. Participating on the call today are Larry Richman, PrivateBancorp President and Chief Executive Officer; and Kevin Killips, our Chief Financial Officer. Kevin Van Solkema, our Chief Credit Risk Officer will also be available for questions.

PrivateBancorp's second quarter 2015 earnings press release was distributed this morning over the newswires. The release and the financial supplements with additional financial tables are available on our website at

(Forward-looking Cautionary Statements)

Now, I will turn the call over to Larry Richman, President and CEO of PrivateBancorp.

Larry Richman

Great. Thank you, Jeanette and good morning everyone. I appreciate you joining our call this morning. Kevin and I are going to keep our comments relatively brief and then we will open up the lines to your questions.

Let me begin with an overview of our results and my view of the economic and competitive environment and how we are positioned for the second half of the year.

We had another strong quarter, posted record net income of $46 million, up from $41 million in the second quarter 2014. We drove topline growth with increases in both net interest income and fee income as we build relationships with new and existing clients. Net interest income reflected the benefit of our strong loan growth year-to-date.

Net loan growth was $373 million for the second quarter and $651 million for the first half of the year. Steady increases in the average earning assets which were $15.7 billion at the end of the second quarter, helped drive an 11% increase in net interest income from a year ago to $125 million for the second quarter.

Cross-sell continues to be a key component to developing deep client relationships and help drive fee income to $33 million in the second quarter. I am pleased with the trend in non-interest income as our continued relationship development allowed us to match first quarter levels, which included a $4 million gain on the Georgia branch sale.

Treasury management remained a steady and significant contributor to non-interest income. Approximately three quarters of our commercial clients have their treasury management with us. We saw return to more active syndication activity as compared to the first quarter, with both the number of deals and the mix contributing to a strong quarter. We saw a good representation of deals, especially in C&I, commercial real estate and our specialty