PrivateBancorp (PVTB) in Chicago posted stronger earnings because of cost-cutting.
The $13.9 billion-asset company's third-quarter earnings rose 69% from a year earlier, to $33.1 million. Earnings per share of 42 cents were 5 cents higher than the average estimate of analysts polled by Bloomberg.
Noninterest expense fell by more than $10 million from a year earlier, to $71.3 million, as compensation costs and expenses tied to foreclosures and loan collections fell.
Net interest income rose less than 1% from a year earlier, to $105.8 million. The net interest margin narrowed by 17 basis points from the third quarter of last year, to 3.18%. Loans grew 8% from a year earlier, to $10.4 million. Noninterest income was flat from a year earlier, at $27.8 million.
The loan-loss provision fell 40% from a year earlier, to $8.1 million. Net chargeoffs decreased by 49% from the third quarter of 2012, to $10.5 million.