PrivateBancorp in Chicago reported a much smaller loss than anticipated.
The $12.8 billion-asset company posted a loss of $818,000, or 1 cent a share, for the second quarter. The analyst estimate called for a 22-cent loss.
For the year-earlier quarter PrivateBancorp reported a profit of $2.5 million, or 6 cents a share.
Credit-quality trends stabilized, with nonperforming assets essentially flat compared with the first quarter. The company's provision for loan losses declined 37% since March 31, to $45.4 million. Net chargeoffs fell 12.5%. Nonperforming assets totaled $438.9 million, or 3.48% of total assets.
The company said it expects nonperforming assets to remain in line with current levels this quarter, but a meaningful reduction will depend on the economic recovery.
Net revenue increased 9% from the first quarter and operating profit rose 18%, "which reflects the underlying strength of our core business," Larry D. Richman, PrivateBancorp's chief executive, said in a press release Tuesday. The net interest margin was 3.41%, compared with 2.99% a year earlier and 3.3% in the first quarter.
The results sent Private's stock up 14% Tuesday, to close at $12.09.
