PrivateBancorp, Inc. (NASDAQ:PVTB) Q3 2015 Earnings Conference Call - Final Transcript

Oct 13, 2015 • 10:00 am ET


PrivateBancorp, Inc. (NASDAQ:PVTB) Q3 2015 Earnings Conference Call - Final Transcript


Loading Event

Loading Transcript


Good morning and welcome to PrivateBancorp Incorporated Third Quarter 2015 Earnings Call. At this time, I would like to inform you that this conference 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 would now like to turn the call over to Jeanette O'Loughlin, Head of Investor Relations.

Jeanette O'Loughlin

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

(Forward-Looking Cautionary Statements)

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

Larry Richman

Thank you, Jeanette. Good morning, everyone. I'm glad you could be with us on this call this morning. Kevin and I are going to keep our comments brief and then we'll open up the lines for your questions. I will focus this morning on two key areas. One, an overview of our results and two my view on how we are well positioned relative to the economic and competitive environment.

First, our third quarter results. I'm pleased with how we executed again this quarter. Net income was strong at $45.3 million, up 12% from $14.5 million in the third quarter last year. Net revenue increased to $163.1 million, up from $148.2 million a year ago. We drove top line growth with a 12% increase in net interest income year-over-year and strong fee income. Our strength in building new relationships and doing more with existing clients drove a $2 billion increase in earning assets over last year.

Net loan growth was $536 million for the third quarter with almost $400 million in new loans to new clients. We saw a good mix of types of loans. Revolver usage, which fluctuates based upon client needs saw a lift this quarter. The increase contributed about $100 million of loan growth in the quarter and also included higher utilization from draws on capital call lines by our private equity firm clients.

I feel good (Technical Difficulty) in the low interest rates (Technical Difficulty) must be responsive to our clients relative to market competition. We also maintained a disciplined approach to pricing and relationship returns. Cross sell continues to be a key strategic component to developing deep client relationships. I liked that we had another strong quarter of serving our clients comprehensive banking needs.

Treasury management is a significant and important contributor to non-interest income. With about three quarters of our commercial clients doing their