(PVTB - Get Report) of Chicago closed at $12.49 Thursday, returning 23% over the previous year.
The company acquired the failed
of Worth, Ill, in July 2009.
Net income available to common shareholders for the third quarter was $4.5 million, or 6 cents a share, following a loss of $818 thousand, or a penny a share, the previous quarter and a net loss to common shareholders of $31.2 million, or 68 cents a share, a year earlier.
The third-quarter provision for loan losses declined to $41.4 million from $45.4 million in the second quarter and $90 million during the third quarter of 2009. Third-quarter net charge-offs totaled $49.1 million, meaning the company released $7.7 million in loan loss reserves.
The net interest margin was 3.31% compared to 3.41% in the second quarter and 3.09% a year earlier.
Following the company's third-quarter earnings release, John Rodis lowed his rating on PrivateBancorp's shares to neutral, saying that loan quality remained "challenging and total NPAs (including restructured loans) increased 18%," adding that while his firm remains "constructive on the shares and think they still have some room to the upside our revised price target no longer warrants a buy rating."
Total assets were $12.6 billion as of September 30 and the nonperforming 3.67% of total assets, rising from 3.48% the previous quarter and 3.29% a year earlier. The third-quarter net charge-off ratio was 2.17% and reserves covered 2.48% of total loans.
PrivateBancorp owes $243.8 million in TARP money. The company reported a Tier 1 leverage ratio of 10.71%, a total risk-based capital ratio of 14.40% and a tangible common equity ratio of 7.17% as of September 30. Rodis said capital levels were solid, also saying "it does not appear the Company is in a hurry to repay TARP proceeds at this time."
The shares trade just below tangible book value according to SNL Financial and for 10.6 times the consensus earnings estimate of $1.14 for 2012.
Out of 16 analysts covering PrivateBancorp, five rate the shares a buy, while the other 11 all recommend investors hold the shares. Based on the consensus target of $14.80 among analysts polled by Thomson Reuters, the shares have 16% upside potential.