By Becky Yerak | PrivateBancorp Inc. stock was down 13.5 percent to $14.77 a share in
midday trading, after swinging to a first-quarter loss that was bigger
than analysts’ estimates as set-asides for potential loan losses
quadrupled.

In a conference call Monday morning, the Chicago-based lender, which grew rapidly after hiring dozens of former LaSalle Bank executives, also
declined to say whether it would return to profitability in 2010.

In response to an analyst question, the company said it would continue to look at deals for failed banks. Seven were seized by regulators on Friday, but “nothing in that group seemed to fit,” PrivateBancorp said.

PrivateBancorp has done only one FDIC-assisted deal in this recession.

“As we have said previously, we are looking for deals similar to Founders that supplement our core commercial banking strategy, give us meaningful presence in new markets and are not overlapping to existing footprint,” a spokeswoman said Monday.

“While there is still credit uncertainty, we are encouraged by the slowing pace of our non-performing asset growth and continue to actively manage through the challenges of the cycle,” said Chairman and Chief Executive Larry Richman.

PrivateBancorp was slammed during the recession, posting losses in seven of the past 10 quarters and recently ramping up its loan-loss provision as credit woes expanded. In January, Richman said the company wasn’t “out of the woods related to stress on our credit portfolio.”

PrivateBancorp reported a loss of $24.3 million, or 35 cents a share, compared with a profit of $4.8 million, or 14 cents a share, a year earlier. Analysts polled by Thomson Reuters had most recently forecast a loss of 20 cents.

Loan-loss provisions were $72.1 million, up from $17.8 million a year earlier and $69.5 million in the prior quarter. Net charge-offs, or loans lenders don’t think are collectible, rose to 2.56 percent of average loans from 0.17 percent and 1.8 percent, respectively. Nonperforming loans, those near default, were 4.28 percent, compared with from 1.92 percent and 4.36 percent.

Shares closed at $17.07 on Friday. The stock has risen 90 percent this year.

Dow Jones Newswires contributed to this story.