This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

10 More Bank Stocks for Bottom-Fishing Investors

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.
5 of 11

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free
C $44.39 -2.60%
CMA $41.90 -3.40%
FHN $13.61 -2.40%
KEY $11.82 -3.00%
SNV $29.87 -2.40%


Chart of I:DJI
DOW 17,654.38 -96.53 -0.54%
S&P 500 2,049.94 -13.43 -0.65%
NASDAQ 4,724.6070 -38.6170 -0.81%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs