By Becky Yerak | Chicago-based lender PrivateBancorp saw its stock
close up 10.8 percent Wednesday, at  $16.34 a share, as it moved in tandem
with other lenders posting good results. PrivateBancorp has grown rapidly
since 2007, but has recently experienced problems with loan quality.

PrivateBancorp hired dozens of LaSalle Bank lenders after the latter institution was bought by Bank of America Corp. in October 2007. PrivateBancorp doesn’t
report its first-quarter earnings until Monday. But analysts said investors were
encouraged by results they saw Wednesday at other Midwest lenders,
including Itasca-based First Midwest Bancorp Inc., and Columbus,
Ohio-based Huntington Bancshares Inc.

“First Midwest made a little money this quarter, and underlying trends showed an improvement,” said Oppenheimer & Co. banking analyst Terry McEvoy.

Stock of the mid-sized bank closed up 9.7 percent, to $16.10 a share.

McEvoy noted that “other banks in the Midwest are up too,” including Huntington, which closed up 13 percent to $6.59 a share, and Milwaukee-based Marshall & Ilsley Corp., which closed up 6.8 percent to $9.94.

“It’s a good day for Chicago and Midwest-based banks,” McEvoy said. “That’s how we analysts and more importantly investors think. If one bank does or says something who else can be impacted? Good or bad. So much money is out there chasing after short-term performance, and this is they types of bets they make.”

Jason Tyler, director of research operations for Ariel Investments, which owns 7.6 percent of PrivateBancorp, agreed that it was moving in sympathy with other banks that have been posting good results.

“Banks that have been more susceptible to credit issues have been getting a big boost” today, Tyler said.