If you want a good growth story in banking, you're going to have to pay for it. Like Bank of the Ozarks (NASDAQ:OZRK), PrivateBancorp (NASDAQ:PVTB)
is showing uncommonly good loan growth and has a large addressable
opportunity supporting many years of growth. But like Bank of the
Ozarks, that growth potential doesn't come with a bargain price.
I
like PrivateBancorp's leverage to higher rates and its leverage to
economically sensitive loan growth. I also think that the company has
made excellent progress in working off legacy assets and fundamentally
altering its business mix. If you want a bargain in banking, you're
going to have to shop amongst banks well off the beaten path or with
significant ongoing concerns/risks regarding asset growth, expense
leverage, and regulatory/legal issues (names like Citigroup (NYSE:C) and Bank of America (NYSE:BAC)
come to mind). PrivateBancorp doesn't look like a bargain, but if you
want to ride along with a rate-sensitive growth story, there may be
something here for you.
Continue reading here:
PrivateBancorp Already Priced For Big Things
Showing posts with label Privatebancorp. Show all posts
Showing posts with label Privatebancorp. Show all posts
Thursday, January 22, 2015
Tuesday, June 21, 2011
Investopedia: PNC Acquires Another Fixer-Up Bank Chain
For a well-run bank, PNC (NYSE:PNC) is not shy about taking on other banks' troubles in the name of market expansion. Having expanded into the Midwest and Florida with the acquisition of National City in 2008, PNC is moving into the Southeast region of the U.S. with the acquisition of Royal Bank of Canada's (NYSE:RY) U.S. banking operations. While a curious deal in some respects, it could represent a toe-hold for a firm quickly become a super-regional player.
Terms of the Deal
PNC will be paying $3.45 billion to Royal Bank of Canada for its U.S. operations, a regional bank with $25 billion in assets and 424 branches in Alabama, Florida, Georgia, North Carolina, South Carolina and Virginia. PNC will have the option of paying up to $1 billion of the deal price in its own stock, a move that would prospectively represent about 3% of the bank's stock. To raise the cash for the deal, PNC will likely need to issue instruments like debt and trust preferred securities (a form of preferred stock).
For the full article, please click below:
http://stocks.investopedia.
Terms of the Deal
PNC will be paying $3.45 billion to Royal Bank of Canada for its U.S. operations, a regional bank with $25 billion in assets and 424 branches in Alabama, Florida, Georgia, North Carolina, South Carolina and Virginia. PNC will have the option of paying up to $1 billion of the deal price in its own stock, a move that would prospectively represent about 3% of the bank's stock. To raise the cash for the deal, PNC will likely need to issue instruments like debt and trust preferred securities (a form of preferred stock).
For the full article, please click below:
http://stocks.investopedia.
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