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PrivateBancorp Completes Repurchase of $243.8 million of TARP Preferred Stock


Oct 24 - Chicag-based PrivateBancorp Inc. (NASDAQ: PVTB) has completed the repurchase of all preferred stock that it issued to the U.S. Department of Treasury under its Troubled Asset Relief Program Capital Purchase Program at a price of $243.8 million plus $2.3 million in accrued and unpaid dividends, $813,000 of which will be expensed in the fourth quarter 2012. 

The repurchase will result in a one-time, non-cash after-tax charge of approximately $2.23 million in the fourth quarter of 2012, related to unaccreted discount recorded at the date of issuance.

"TARP was an important source of capital for us as we grew our commercial middle market business over the last several years and we are pleased to be repaying the government's investment in a shareholder friendly way," said Larry D. Richman, president and CEO, PrivateBancorp Inc. "In the three years that we held TARP capital, we grew loans by $1.6 billion and assets by $3.3 billion. In addition, we paid more than $45.5 million in dividends to the U.S. Treasury. PrivateBancorp is well positioned to continue to execute our commercial middle market strategy, serve our clients, grow our business and build value for our shareholders."

PrivateBancorp used net proceeds from its $75 million underwritten public offering of its common stock and net proceeds from its $125 million underwritten public offering of its 7.125 percent subordinated debentures due 2042, together with existing cash resources, to repurchase the TARP preferred stock. The company also intends to seek to repurchase the common stock warrant that it issued to the U.S. Treasury as part of its participation in the Capital Purchase Program.

Giving effect to the equity and debt offerings and the TARP redemption, PrivateBancorp's pro forma Tier 1 common capital ratio as of Sept. 30, 2012, is 8.70 percent, its pro forma Tier 1 risk-based capital ratio is 10.77 percent and its pro forma total risk-based capital ratio is 13.49 percent.

About PrivateBancorp Inc.
PrivateBancorp Inc., through its subsidiaries, delivers customized business and personal financial services to middle-market companies, as well as business owners, executives, entrepreneurs and families in all of the markets and communities we serve. As of Sept. 30, 2012, the company had 35 offices in 10 states and $13.3 billion in assets. The company website is