On July 23, PrivateBancorp (NASDAQ:PVTB) released second-quarter earnings for the period ended June 30.

  • Total revenue and net interest income both increased for the quarter. However, net interest margin decreased by 36 basis points.
  • The efficiency ratio increased to 58.10%, mainly because of a rise in the company's operating expenses coupled with the modest increase in net interest income.
  • Non-interest expenses increased 23%, mainly because of a surge in expenses connected with increased salary expenses, new hires, and higher occupancy costs.
  • The company declared a dividend of $0.075 per share, an increase of 25% over the dividend paid in the previous year's quarter.
  • PrivateBancorp carries a one-star (out of a potential five) Motley Fool CAPS rating. Competitors Northern Trust (NASDAQ:NTRS) and Wintrust Financial (NASDAQ:WTFC) carry a two- and a one-star rating, respectively.

(Figures in thousands, except per-share data)

Income Statement Highlights

Q2 2007

Q2 2006

Change

Total Revenue

$36,112

$34,110

5.9%

Net Interest Income

$32,111

$29,862

7.5%

Net Profit

$ 8,751

$10,013

(12.6%)

EPS

$0.40

$ 0.47

(14.9%)

*Non-GAAP EPS as reported by the company.

Get back to basics with a look at the income statement.

Ratio Checkup

Q2 2007

Q2 2006

Change*

Net Interest Margin

3.19%

3.55%

(0.36%)

Efficiency Ratio

58.10%

50.30%

7.80%

Nonperforming Assets / Assets

0.70%

0.09%

0.61%

Return on Average Assets

0.80%

1.10%

(0.30%)

Return on Average Equity

11.66%

16.65%

(4.99%)

*Expressed in percentage points.

Find out more about bank performance ratios.

Balance Sheet Highlights

Assets

Q2 2007

Q2 2006

Change

Investments

$515,526

$501,297

2.8%

Loans

$3,726,244

$2,962,469

25.8%

Liabilities

Q2 2007

Q2 2006

Change

Deposits

$3,638,545

$3,125,774

16.4%

Total Liabilities

$4,179,901

$3,401,467

22.9%

Learn about bank assets and bank liabilities.

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