Shares of PrivateBancorp Inc. surged Tuesday following news that the Chicago company had more than doubled its third-quarter earnings from a year earlier as revenue increased and credit costs subsided.
The $12 billion-asset company on Tuesday reported earnings of $10 million for the quarter, compared to $4.5 million a year earlier and $5.5 million in the second quarter. At 14 cents per share, the earnings were twice what analysts were expecting, according to Thomson Reuters.
In heavy trading, PrivateBancorp's shares rose 11% Tuesday, to close at $10.30.
The company said that revenue for the quarter was $129.4 million, up 5% from a year earlier and the second quarter. The growth was aided by an 18% jump in noninterest income, to $27.6 million, with capital markets driving the increase. The company said in a press release that its capital markets division’s income was up 77% from a year earlier as more borrowers utilized that business line.
Asset quality also improved. PrivateBancorp set aside $32.6 million for loan losses, down 21% from a year earlier, as nonperforming assets decreased by 9%, to $421.1 million.
At $8.4 billion, the company's total loans were down 3.3% from a year earlier, however commercial and industrial loans — a key growth area — were up 11% from a year earlier and now make up 59% of the portfolio.
