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7. PrivateBancorp

Shares of PrivateBancorp (PVTB) of Chicago closed at $7.86 Monday, down 45% year-to-date. The shares trade for 0.6 times their tangible book value of $12.67, according to SNL Financial.

The company owes $243.8 million in TARP money.

PrivateBancorp had $12.1 billion in total assets of June 30 and reported second-quarter net income available to common shareholders of $5.5 million, or eight cents a share, compared to a net loss of $818 thousand, or a penny a share, during the second quarter of 2010. The second-quarter provision for loan losses declined to $31.1 million from $45.4 million a year earlier. The second-quarter net interest margin was a 3.36%, declining slightly from a year earlier. The second-quarter return on average assets (ROA) was 0.29%, reflecting the continued drag on earnings from credit expenses.

The second-quarter net charge-off ratio was 1.95%, declining from 2.24% a year earlier. Loan loss reserves covered 2.38% of total loans as of June 30.

Following PrivateBancorp's second-quarter earnings announcement in July, Peyton Green of Sterne Agee reiterated his neutral rating for PrivateBancorp and lowered his 2012 earnings estimate by 15 cents to 80 cents a share, saying the credit cycle remained "very sticky" for the company. Green also took note that the company's $120 million in deferred taxes -- representing 14% of its tangible common equity - didn't "carry any sort of valuation allowance," meaning a write-down could be in store.

The shares trade for 10 times the 2012 consensus earnings estimate of 77 cents a share, among analysts polled by FactSet.

Three out of 14 analysts covering PrivateBancorp rate the shares a buy. The remaining analysts all have neutral ratings, which isn't surprising, considering the TARP overhang and skittishness over the deferred tax assets.

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