Before the bell on Oct 17 regional bank PrivateBancorp, Inc. (PVTB) reported third quarter earnings, which bested analyst estimates on both revenue and earnings. The beat, especially the robust net income increase, sent the company’s shares way up in early trading, returning the bank's stock price to its highest level since early 2009.
The small lender has 34 locations scattered through nine states. Founded in 1987 in LaSalle, Ill., the bank reported a 56 percent increase in profit year-over in their most profitable quarter ever recorded.
In the earnings report, President and CEO Larry D. Richman explained the bank’s growth was due to their "ability to generate new client relationships and win market share.” He specifically cited PrivateBancorp’s growth in the traditional banking areas of loans and deposits, citing increases of $315 million and $470 million, respectively.
PrivateBancorp operates under the moniker The Private Bank. The lender has been recovering nicely the last two years after a series of disastrous quarters during the financial crisis ravaged the company and sent the shares down nearly 75 percent between Sept. 2008 and Mar. 2009.
For the third fiscal quarter, PrivateBancorp reported net income of $33.1 million, or $0.42 per share, versus the $19.6 million, or $0.27 per share, from the same period a year ago. Revenue for the quarter was $134.4 million, “relatively unchanged” from the previous year. Analysts were expecting a profit of $0.37 per share on revenues of $131.49 million.
PrivateBancorp popped on the earnings record, rising 6.46 in midday trading to hit $23.90.