PrivateBancorp (PVTB) in Chicago reported a jump in quarterly income as costs associated with soured loans and foreclosed properties fell sharply.
On Thursday the $13.5 billion-asset company reported second-quarter profit of $28.9 million, 105% higher than in the second quarter of 2012. Per-share earnings of 39 cents beat the estimates of analysts polled by Bloomberg by 6 cents.
PrivateBancorp's overhead costs fell 8%, to $77.3 million, as costs from foreclosed properties dropped by more than $6 million, to $5.6 million. Compensation costs fell 6%, to $39.9 million.
Net interest income fell 2%, to $103.7 million, as the company's net interest margin narrowed by 24 basis points, to 3.22%.
Noninterest income rose 11%, to $29 million, as mortgage-banking income, trust and investment fees and treasury-management revenue all ticked up.
PrivateBancorp's provision for loan losses dropped by 52%, to $8.3 million, as credit quality improved. Net chargeoffs were $14.1 million, down 48%, and nonperforming loans were $121.8 million, a 42% decline.