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Shares closed at $11.98, near the low for the day.
The weakening commercial real estate market forced the $12.1 billion-asset bank to set aside $90 million for potential loan losses, up from $30.2 million in the same period a year ago.
"The environment has not improved, and stress will continue in the portfolio for the near term," the company said during a Monday morning conference call. In the same period last year it lost $7.8 million, or 25 cents a share.
The bank is two years into a strategic growth plan, having hired dozens of former LaSalle Bank lenders over the past two years, including PrivateBancorp Chief Executive Larry Richman.
"The emergence of credit deterioration at PrivateBancorp in loans originated" since November 2007 "will no doubt result in the questioning of the company's decision to grow aggressively over the past two years," Oppenheimer analyst Terry McEvoy wrote in a report. "Additional capital is needed," said McEvoy, who nonetheless maintains a "perform" rating on the bank. That means he expects it to perform in line with the Standard & Poor's 500 in the next 12 to 18 months.
In the past year alone PrivateBancorp's loans have grown from $7.44 billion to $9.03 billion. It has added 700 new client relationships over the past two years.
The company had $396.6 million in non-performing assets, including seriously delinquent loans, at Sept. 30, compared with $106.5 million at Sept. 30, 2008, and $212.8 million at June 30. It said non-performing loans will continue to grow for reasons that include an anemic employment picture but said that rate of growth will slow.
Oppenheimer said the percentage of nonperforming assets has jumped to 4.38 percent in the third quarter, up from 2.43 percent in the second quarter.
PrivateBancorp said most of the additions to its basket of seriously delinquent loans were originated before 2007.
The bank said the pace of loan growth has slowed but it remains "an active lender."
PrivateBancorp said it plans to raise $175 million in a common stock offering. Some of the proceeds might be used to buy failed banks through a bid process with regulators.
PrivateBancorp said it's "extremely pleased" with its July acquisition of the failed Worth-based Founders Bank through a deal with assistance from the Federal Deposit Insurance Corp. "The client retention has been strong since the transaction, with total deposits growing 3 percent to $793.9 million as of Sept. 30."
It said it plans similar FDIC-assisted deals in the future, and notes there will "always be a digestion period necessary."
Shares were trading at $12.85 a share in early afternoon trading Monday. Its 52-week trading range is $9.08 to $39.19.
byerak@tribune.com
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