PrivateBancorp recently posted a second quarter loss, primarily related to its previously announced expansion plans.
PrivateBancorp’s losses steepen
PrivateBancorp Inc., the Chicago-based parent company of Private Bank-Wisconsin, recently reported a second quarter net loss of $13.3 million, or 48 cents per share, compared with net income of $8.8 million, or 40 cents per share, in the same period a year ago.
The company’s net loss for the first six months of the year was $22.2 million, or 82 cents per share. PrivateBancorp attributed its second quarter net loss primarily to expenses associated with the implementation of its previously announced strategic growth plan, an increase in its provision for loan losses and expenses with the correction of a prior-period accounting error. The company again managed to record increases in revenue, client deposits and loans, and the number of new clients.
"The second quarter results once again show success in the ongoing implementation of our strategic growth plan and the reported loss reflects the continued investments we’re making to position our company for long-term success," said Larry Richman, president and chief executive officer of PrivateBancorp. "We made a number of opportunistic hires during the quarter, including professionals focused on building client deposits, and we have further strengthened areas such as risk management and operations. I am encouraged by the new business development we have seen from our bankers and the ongoing diversification of both our loan portfolio and sources of fee income, all critical to generating sustainable organic growth. In the current credit environment, we have taken deliberate steps to ensure the quality of our loan portfolio as well as the rigor of our risk management practices."
