PrivateBancorp, Inc. (NASDAQ:PVTB) Q1 2016 Earnings Conference Call - Final Transcript

Apr 21, 2016 • 11:00 am ET


PrivateBancorp, Inc. (NASDAQ:PVTB) Q1 2016 Earnings Conference Call - Final Transcript


Loading Event

Loading Transcript


Good morning and welcome to PrivateBancorp Inc's First Quarter 2016 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. As the request of the company, we will open the conference call for questions-and-answers after the presentation. Please note that the company will be taking question from individuals and companies that have been invited to attend the live portion of the conference call.

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

Jeanette O'Loughlin

Good morning and welcome to PrivateBancorp's first quarter 2016 earnings conference call. Participating on the call today are Larry Richman, PrivateBancorp President and CEO, and Kevin Killips, our CFO. Kevin Van Solkema, our Chief Credit Risk Officer will also be available for questions.

PrivateBancorp's first quarter 2016 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'll turn this call over to Larry Richman, President and CEO of PrivateBancorp.

Larry Richman

Thank you, Jeanette, and good morning, everyone. I'll begin this morning with my views on our first quarter results. As Jeanette said, Kevin will go through our financial highlights and Kevin Van Solkema is here and will join us for the Q&A.

I will focus on two things this morning. First, how our success in adding new clients and doing more for existing clients is driving our results. Second, I take on the economic and competitive environment and how that shapes our views of our business and how we are positioned through 2016.

Let me start with our first quarter performance. I am pleased with the way our team continues to execute our differentiated banking strategy. Net income was up 19% versus a year ago at $49.6 million, but down slightly from fourth quarter reflecting seasonally higher employee expenses in the first quarter. Earnings per share were $0.62, compared to $0.52 a year ago and $0.65 last quarter.

We grew revenue from last quarter and a year ago by adding new clients, growing loans and deposits and increasing non-interest income through active cross-sell, as well as realizing a full quarter's benefit of the December rate increase. Net revenue was over $174 million in the first quarter, an 11% increase from a year ago and up from $170 million last quarter. Revenue growth outpaced expense growth giving us important operating leverage in our business.

We had another strong quarter of loan origination activity with about $400 million in new loans to new clients. Net loan growth was $191 million. Market volatility in January seemed to temper activity early in the quarter. We saw activity tick up as the quarter progressed. Once again, we had strong loan origination activity in our commercial and industrial portfolio with about $350 million of the $400 million in loans in our CNI book.

We had a good mix of clients in a variety