PrivateBancorp Returns To Profitability In 1Q

CHICAGO (AP) — PrivateBancorp Inc., which provides financial services to commercial firms, business owners, executives and individuals, said Monday it returned to profitability during the first quarter and easily topped analysts' expectations.

The bank earned $4.8 million, or 14 cents per share, after paying preferred dividends. It lost $9.3 million, or 34 cents per share, during the same quarter last year.

Analysts polled by Thomson Reuters, on average, forecast a loss of 2 cents per share.

PrivateBancorp returned to profitability because of increases in interest income from taxable securities and loans and a surge in income from capital markets products.

Net interest income, or the difference between how much it costs a bank to borrow money and how much it receives from lending money, increased to $63.9 million from $36 million. Net interest income was boosted as the bank's interest on taxable securities increased to $14.5 million from $4.3 million during the first quarter last year. Interest income from loans also swelled, increasing 22 percent to $92.9 million from $76.1 million during the first quarter a year ago.