PrivateBancorp, Inc. Board Adopts Strategic Growth and Transformation Plan
In a series of swift and highly calculated corporate moves, the Board of Directors of PrivateBancorp, Inc. adopted and began to implement a Strategic Growth and Transformation Plan.
PrivateBancorp, Inc. is the parent holding company of The PrivateBank - Kansas City, and the 17 other PrivateBank offices located in the Atlanta, Chicago, Detroit, Milwaukee and St. Louis. Collectively the company has over $4.5 billion banking assets and more than $3.5 billion of assets under management.
The PrivateBank delivers a sophisticated suite of tailored credit, treasury and wealth management solutions to meet client's personal and commercial financial needs.
The organization through its PrivateBank subsidiaries, provides distinctive, highly personalized, premium financial services to a growing array of successful entrepreneurial middle market to small public and privately held businesses, affluent individuals, wealthy families, professionals, entrepreneurs and real estate investors.
According to Cal Kleinman, Chairman of The PrivateBank - Kanasas City, "We appreciate the support given to us by PrivateBancorp under the leadership of Ralph Mandell. We believe the current restructuring adds highly experienced leadership and successful commercial bankers as well as the necessary capital to underwrite our aggressive growth which in turn will move us farther and faster in our efforts to become the pre-eminent middle-market commercial and private bank in Kansas City as well as the other markets PrivateBancorp serves."
The PrivateBank uses a European tradition of "private banking" as a model to develop lifetime relationships with its clients. Through a team of highly qualified managing directors, The PrivateBank delivers a sophisticated suite of tailored credit, treasury and wealth management solutions to meet client's personal and commercial financial needs.
The Strategic Growth and Transition Plan will be led by the company's new CEO, Larry Richman, former President and Chief Executive Officer of LaSalle Bank, N.A., Chicago and Ralph Mandell, Chairman of the Board.
The exciting story of the transformation is well told through the company's Press Releases and articles which appeared in various business publications, both print and on line. Excerpts of those communications follow.
Larry Richman Joins PrivateBancorp, Inc.
as Chief Executive Officer
Ralph Mandell to Continue as Chairman of the Board
PrivateBancorp, Inc. Announces Strategic Growth and Transformation Plan
CHICAGO, Nov. 2 /PRNewswire-FirstCall/ -- The Board of Directors of PrivateBancorp, Inc. (Nasdaq: PVTB) announced today that Larry D. Richman, 55, has joined the Company and on November 5, 2007 will assume the role as its President and Chief Executive Officer succeeding Ralph B. Mandell, 66, who will continue as Chairman of the Board. Mr. Richman was also appointed to the positions of Chairman, President and Chief Executive Officer of The PrivateBank - Chicago and was appointed to the board of directors of PrivateBancorp, expanding the board to 16 members.
Mr. Richman was previously President and Chief Executive Officer of LaSalle Bank, N.A., Chicago.
Larry Richman |
Ralph Mandell |
"We are thrilled to have Larry join us to lead PrivateBancorp into its next stage of growth, building upon the unique approach to private banking that we have successfully fostered since our inception. Larry is a proven business and civic leader whose passion for clients and the Chicago area has been demonstrated in his past successes. He is the right person at the right time for PrivateBancorp, and I couldn't be happier with this plan of succession," said Ralph B. Mandell, Chairman of the Board, PrivateBancorp, Inc. "I will be fully engaged and look forward to working alongside Larry, the outstanding group of commercial bankers who have recently joined us, and our existing team of highly talented managers, to implement PrivateBancorp's Strategic Growth and Transformation Plan in the months ahead," said Mandell.
"I am very excited to be joining Ralph and the talented team at PrivateBancorp, and honored that the Board selected me for this leadership role. There is an extraordinary opportunity for us to build and expand client relationships to become the premier middle market commercial and private bank not only in Chicago, but also in all of the markets we serve," said Larry D. Richman. "I have a deep respect for the entire PrivateBancorp team and what they have accomplished and I recognize the importance of succeeding and working with someone whose name is almost synonymous with the institution they lead."
"Throughout my career I have tried to lead by supporting personal growth and teamwork, promoting an entrepreneurial culture and building deep relationships with clients and colleagues -- the same values upon which PrivateBancorp was built. I'm committed to building upon this unique culture for the benefit of our stockholders, clients and staff, as well as the communities in which we have a presence," added Richman
The hiring of Mr. Richman follows PrivateBancorp's recent success in recruiting a number of key middle market commercial bankers from LaSalle Bank, N.A., as part of a Strategic Growth and Transformation Plan (the "Plan") that has been adopted by its Board of Directors.
SOURCE PrivateBancorp, Inc. Excerpted from Company Release
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LaSalle Bank Executives Join
The PrivateBank-Chicago
Former LaSalle Group Senior Vice Presidents Robert Frentzel and Jeffrey Steele Named Managing Directors and Executive Vice Presidents; Brant Ahrens named Managing Director and Group Senior Vice President
CHICAGO, Oct. 22 /PRNewswire-FirstCall/ -- Twelve former LaSalle Bank executives have joined The PrivateBank-Chicago, a unit of PrivateBancorp, Inc. (Nasdaq: PVTB), it was announced today by Ralph B. Mandell, Chairman, President and CEO of PrivateBancorp, Inc. and The PrivateBank-Chicago.
Named managing directors and executive vice presidents of commercial banking are Robert W. Frentzel and Jeffrey D. Steele, who were group senior vice presidents of commercial banking at LaSalle Bank. C. Brant Ahrens, most recently head of LaSalle Bank'sFinancial Institutions Group, was named managing director and group senior vice president and will head strategy and integration for The PrivateBank-Chicago.
In addition, the following LaSalle Bank executives have joined The PrivateBank-Chicago as managing directors and senior vice presidents in commercial banking: Bluma Broner; Peter Kane; Richard Kress; Michael Monticello; David Sauerman; and, Steve Trepiccione. Former LaSalle banker Matthew Gibbons was named associate managing director and vice president and John O'Connell was named private banking officer.
Mandell also announced that Joan Schellhorn, former senior vice president in LaSalle's human resources department has been named chief human resources officer of PrivateBancorp and a managing director and chief human resources officer of The PrivateBank-Chicago.
"Sustainable growth, in our business model, is predicated upon our ability to find talented, experienced bankers who fit with our unique culture while sharing our commitment to excellence in client service. We have an established track record of attracting and integrating such individuals in all of the markets we serve, whether in teams through de novo expansion or acquisitions, or through individual hires. With Bob, Jeff and Brant joining The PrivateBank along with the other seasoned and talented bankers mentioned, we are able to augment the existing, world-class private banking team we have built over the past 18 years to take advantage of the unique commercial banking growth opportunities presented by the changing dynamics in the Chicago banking industry," said Mandell.
"The new members of our team have established relationships among our target market of entrepreneurial public and privately-held businesses, professionals, and real estate investors. Most importantly, they share our vision, philosophy of and dedication to serving clients. We will continue to aggressively explore opportunities to attract additional talent," added Mandell.
SOURCE PrivateBancorp, Inc. Excerpted from Company Release
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Eleven Commercial Bankers Join
The PrivateBank-Michigan
Daniel Pehrson, Former LaSalle Bank Midwest Executive, to Head Group
BLOOMFIELD HILLS, Mich., Dec. 13 /PRNewswire/ -- Eleven former commercial banking executives from LaSalle Bank Midwest'sTroy, Michigan office, have joined The PrivateBank-Michigan, a unit of PrivateBancorp, Inc. (Nasdaq: PVTB), it was announced today by David T. Provost, Chairman and CEO.
Daniel Pehrson, former group senior vice president, was named managing director and group head.
Named managing directors were: Dennis Harder, Phil Kapanowski, Greg Roberts, and Ronald Valentine. All were former senior vice presidents, commercial banking. In addition, Gregg Speaks, former first vice president, commercial real estate banking, was named managing director.
Named associate managing directors were: Richard Arceci, Nick Fadel, Eric Haege and Laura Kalil. All were first vice presidents, commercial banking. Mark Ossman, who was previously a vice president, was also named associate managing director.
"We are delighted that these exceptional, experienced commercial bankers have chosen to join The PrivateBank-Michigan. As we have previously mentioned, sustainable growth, in our business model, is predicated upon our ability to find talented bankers who fit our culture, while sharing our commitment to excellence in client service. Dan Pehrson has attracted a great team of bankers with an established track record, and we believe they will clearly enhance our commercial banking growth opportunities," said Provost.
Ralph B. Mandell, Chairman of PrivateBancorp, Inc., added, "These commercial banking executives, along with our other seasoned and talented bankers at The PrivateBank-Michigan, position us well to continue to grow relationships in the Michigan market. We will continue to recruit talented bankers in all of our markets with the goal of substantially increasing our middle market commercial banking capabilities."
SOURCE PrivateBancorp, Inc. Excerpted from Company Release
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PrivateBank-KC's parent gets $200M investment
Kansas City Business Journal
Nov. 28-- PrivateBancorp Inc. said Tuesday that it has secured a $200 million private placement of equity securities to institutional and individual accredited investors.
PrivateBancorp (Nasdaq: PVTB) is the parent of The PrivateBank-Kansas City.
Dennis Klaeser, PrivateBancorp's CFO, said Wednesday that the company will put at least $15 million of the placement in the short term into the Kansas City bank.
In a release, PrivateBancorp said that the equity placement will be led by a $100 million investment from Chicago-based GTCR Golder Rauner LLC. Chicago-based Mesirow Financial, through its affiliates, will invest $40 million, and a number of businesses and individuals will invest the remaining $60 million.
PrivateBancorp said it is raising the capital to support its growth initiatives. The placement increases the company's loan limit to about $125 million.
All the securities to be sold in the private placement were priced at the equivalent of $28.71 a common share, the price PrivateBancorp's stock closed at Friday. The transaction is expected to close Dec. 11.
"This private placement gives us the capital to support the continued expansion of our client relationships and substantially grow our loan portfolio in the greater Kansas City marketplace," Calvin Kleinmann, The PrivateBank-Kansas City's chairman and CEO, said in the release. "We believe this investment supports our efforts to become the pre-eminent middle-market commercial and private bank in Kansas City as well as the other markets PrivateBancorp serves."
PrivateBancorp had assets of $4.5 billion as of Sept. 30. It has 18 offices in the Atlanta, Chicago, Detroit, Milwaukee, St. Louis and Kansas City areas.
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PrivateBancorp, Inc. Announces Closing of $200 Million Private Placement Offering
CHICAGO, Dec. 11 /PRNewswire-FirstCall/ -- PrivateBancorp, Inc. (Nasdaq: PVTB) today announced that it has completed its previously announced private placement offering of 5,581,680 shares of common stock, and 1,428.074 shares of a newly created class of Series A Junior Nonvoting Preferred Stock (the "Series A Stock"), which are convertible into 1,428,074 common shares. The aggregate number of common and preferred shares issued represents 23.5% of the Company's common stock outstanding after the offering (assuming conversion of the Series A Stock).
All of the securities sold in the private placement were priced at the equivalent of $28.71 per common share, the official Nasdaq Consolidated Closing Bid Price of PrivateBancorp, Inc.'s common stock as of Friday, November 23, 2007. All securities sold in the transaction are subject to a two-year lock-up agreement, subject to certain exceptions.
Certain funds managed by GTCR Golder Rauner, LLC ("GTCR") acquired approximately 2.06 million shares of common stock for approximately $59 million and 1,428.074 shares of Series A Stock for $41 million, representing an aggregate of approximately 7.2% of the Company's shares of outstanding common stock before conversion of the Series A Stock, and 11.7% after giving effect to the conversion. Mesirow Financial, through its affiliated entities, also purchased $40 million of common stock in the offering, representing approximately 4.9% of the Company's outstanding common stock. The remaining $60 million was purchased by a number of institutional and individual accredited investors. The Company will use the proceeds from the sale of the shares for working capital and general corporate purposes, including to support its
SOURCE PrivateBancorp, Inc. Excerpted from Company Release
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Gary Collins Named President,
PrivateBank - Chicago Offices; Hugh McLean Named President, PrivateBank - Suburban Chicago Offices; and, Jay Williams Named Chief Operating Officer of PrivateBancorp, Inc.
Company Finalizes Organizational Structure for Execution of Strategic Growth Plan
CHICAGO, Dec. 20 /PRNewswire-FirstCall/ -- PrivateBancorp, Inc. (Nasdaq: PVTB) today announced the following executive management promotions:
- Gary S. Collins, 48, has been named to the new position of Executive Managing Director and President, PrivateBank - Chicago Offices. Collins was previously vice chairman and a managing director of the The PrivateBank - Chicago.
- Hugh H. McLean, 48, has been named to the new position of Executive Managing Director and President, PrivateBank - Suburban Offices.
Previously, McLean was vice chairman and a managing director of The PrivateBank - Chicago.
- Jay Williams, 56, chairman and chief executive officer of The PrivateBank - Wisconsin, has added the title of Chief Operating Officer of PrivateBancorp, Inc., a new position. Williams will retain his current responsibilities at The Private Bank - Wisconsin and continue to work out of the Milwaukee office.
"Gary, Hugh and Jay have been instrumental in PrivateBancorp's growth over the years. Going forward in their new leadership roles, they will continue to help the Company achieve and sustain client growth, especially in the Chicago and Milwaukee markets. I look forward to working beside them to continue to deliver PrivateBancorp's relationship approach to banking for the benefit of our clients," said Larry D. Richman, President and CEO, PrivateBancorp, Inc.
"With these well-deserved promotions, we have finalized our organizational structure for the execution of the Company's Strategic Growth Plan. We will continue to work as a unified team to support our clients' goals and objectives. From PrivateBancorp's inception in 1989, its success has been predicated upon its ability to attract, develop and retain highly talented individuals throughout the organization. Talent will continue to drive our growth moving forward," said Richman.
The Company's new organizational structure focuses efforts through six key lines of business, each led by an Executive Managing Director who serves on PrivateBancorp's newly formed executive committee and reports directly to Richman. The Commercial Real Estate division, led by Karen B. Case, is responsible for commercial real estate loans to real estate professionals. The National Commercial Banking division, led by Bruce R. Hague, is responsible for the Company's commercial banking activities outside of Illinois, including the markets served by The PrivateBank - Georgia, The PrivateBank - Michigan, The PrivateBank - St. Louis, The PrivateBank - Kansas City (in formation) and The PrivateBank - Wisconsin, as well as the Company's commercial banking expansion efforts in cities where The PrivateBank does not currently have a physical presence. The Illinois Commercial Banking division, led by Bruce S. Lubin, is responsible for commercial banking relationships with entrepreneurs, small businesses and middle-market companies located in Illinois. The PrivateWealth Group, led by Wallace L. Head, is responsible for trust and wealth management services across all of the Company's markets. Gary S. Collins leads the PrivateBank - Chicago Offices division, responsible for serving clients in the Company's Chicago and Gold Coast Offices. Hugh H. McLean is responsible for the PrivateBank - Suburban Offices division, serving clients in the Company's Lake Forest, Oak Brook, North Shore, St. Charles, Geneva and Winnetka offices.
The Company also announced the formation of an executive committee, comprised of Richman and each of the aforementioned heads of the Company's six key lines of business and its key corporate functions, which include:
- C. Brant Ahrens, Managing Director and Strategic Development Officer;
- Dennis L. Klaeser, Managing Director and Chief Financial Officer
- James A. Ruckstaetter, Managing Director and Chief Credit Officer
- Joan Schellhorn, Managing Director and Chief Human Resource Officer
- Jay Williams, Managing Director and Chief Operating Officer
- Christopher J. Zinski, Managing Director, General Counsel and Corporate Secretary
Collins joined The PrivateBank in 1991 as one of its founding managing directors. In his new role he will oversee the Company's Chicago and Gold Coast Offices. Prior to joining The PrivateBank, Collins was senior vice president of First United Financial Services and the Oak Park Trust and Savings Bank. He holds a BS in finance from DePaul University, Chicago and an MBA from Dominican University, River Forest, IL. He is also a graduate of the Graduate School of Banking at the University of Wisconsin-Madison. Active in community affairs, Collins serves on the boards of the Jane Adams Hull House Association, the Oak Park Development Corporation, Family Service and Mental Health Center of Oak Park River Forest, and he is a member of The President's Council Advisory Board to the Loyola University Health System. Collins and his family reside in Oak Park, IL.
McLean joined The PrivateBank-Chicago in 1996, as a managing director. As President of the PrivateBank-Suburban Chicago Offices, he will oversee the Bank's Lake Forest, Oak Brook, North Shore, St. Charles, Geneva and Winnetka offices. Prior to joining The PrivateBank, McLean served as a regional manager with Firstar Bank Illinois and its predecessor from 1990 to 1996. Prior to that, he headed a commercial lending group at the former American National Bank and Trust Company, Chicago. A graduate of Lawrence University, Appleton, WI, McLean holds an MBA from the University of Chicago. He currently is a trustee for Elmhurst College and a trustee of the Oak Brook Terrace Police Pension Fund. McLean and his family reside in Elmhurst, IL.
Williams has been a Director of PrivateBancorp, Inc. since 2004, and he is a founding Managing Director and the Chief Executive Officer of The PrivateBank - Wisconsin. In his new capacity as Chief Operating Officer of PrivateBancorp, Inc., Williams will oversee the Company's operations, marketing, information technology, facilities and treasury management functions. Prior to joining PrivateBancorp, Williams served for over 30 years in various capacities with U.S. Bank and its predecessors, Firstar and First Wisconsin, culminating in his tenure as President of U.S. Bank Wisconsin. Williams serves on the boards of the Southeast Wisconsin Professional Baseball Park District, Medical College of Wisconsin, St. Norbert College, United Way of Greater Milwaukee, YMCA of Metropolitan Milwaukee, Milwaukee Public Library Foundation and the Wisconsin Tax Payers Alliance. Williams and his family reside in Milwaukee.
SOURCE PrivateBancorp, Inc. Excerpted from Company Release
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Forward-Looking Statements:
Statements contained in the foregoing news releases and articles that are not historical facts may constitute forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended. The Company's ability to predict results or the actual effect of future plans or strategies is inherently uncertain.
Factors which could have a material adverse effect on the operations, earnings financial condition and future prospects of the Company include, but are not limited to: fluctuations in market rates of interest and loan and deposit pricing in the Company's market areas; the effect of continued margin pressure on the Company's earnings; further deterioration in asset quality and/or an increase in nonperforming loans; adverse developments in the Company's loan or investment portfolios; a significant increase in non-interest expense, specifically compensation and benefits-related expense, due to our strategic growth initiatives, including the recent and anticipated future hiring of additional Managing Directors and other senior officers; unforeseen difficulties in integrating new hires; our ability to implement our growth strategy, including slower than anticipated growth of the Company's business, specifically its commercial lending, or unanticipated business declines; failure to get regulatory approval for a de novo federal savings bank in Kansas City; unforeseen difficulties in the continued integration of The PrivateBank - Georgia or higher than expected operational costs; competition; failure to improve operating efficiencies through expense controls; legislative or regulatory changes; and the possible dilutive effect of potential acquisitions, expansion or future capital raises.
These risks and uncertainties should be considered in evaluating forward-looking statements and undue reliance should not be placed on such statements. The Company assumes no obligation to update publicly any of these statements in light of future events unless required under the federal securities laws.
Additional information can be found in the Investor Relations section of PrivateBancorp, Inc.'s website at http://www.pvtb.com/.
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