CHICAGO (AP) — PrivateBancorp Inc. on Tuesday reported sharply higher second-quarter earnings, as it set aside less money to cover bad loans.
However, expenses rose, primarily due to costs from foreclosed properties, and shares of the Chicago-based bank fell nearly 4 percent.
PrivateBancorp reported net income of $14.1 million, or 19 cents per share, for quarter ended June 30. That was up from earnings of $5.5 million, or 8 cents per share, in last year's second quarter.
Analysts surveyed by FactSet had expected earnings of 16 cents per share, on average, in the latest quarter.
The bank's customers got better about paying their loans on time during the quarter, and it put aside just $17 million to cover uncollected debt in the second quarter, down from $31.1 million in the same period of 2011.
The bank also wrote off fewer bad loans. Net charge-offs dropped to $33.9 million from $45.3 million in the same period last year.
An increase in commercial and industrial lending with new and existing customers pushed total loans to more than $9.4 billion, up from nearly $8.7 billion a year earlier.
Net interest income, or money earned from deposits and loans, rose 5 percent to $105.3 million. Non-interest income, which includes fees from mortgage banking and other activities, rose nearly 22 percent to $26.2 million.
But non-interest expenses rose nearly 11 percent to $83.9 million, primarily driven by expenses for property foreclosures. Those costs rose 59 percent compared with a year ago.
Shares of PrivateBancorp fell 43 cents, or 2.9 percent, to close Tuesday at $14.60. The stock has traded as high as $16.40 and as low as $6.44 over the past 12 months.
- Investment & Company Information