PrivateBancorp, Inc. to Acquire Bloomfield Hills Bancorp. Inc.

Press Release:

PrivateBancorp, Inc. to Acquire Bloomfield Hills Bancorp. Inc.

Press Release
News Article April 2005

CHICAGO, April 14 /PRNewswire-FirstCall/ -- PrivateBancorp, Inc. (NASDAQ:PVTB) announced today that it has signed a definitive agreement to acquire Bloomfield Hills Bancorp. Inc. ("Bloomfield Hills Bancorp") for $64 million in cash. Bloomfield Hills Bancorp, which has assets of $338 million, operates a single bank subsidiary, The Private Bank, which has three banking offices located in the affluent Detroit area communities of Bloomfield Hills, Grosse Pointe and Rochester. The Private Bank also operates a trust and wealth management unit and a mortgage-banking subsidiary.

"We are very excited to have Bloomfield Hills Bancorp join our company. Its solid management team, business model and their existing presence in some of Michigan's most affluent communities is consistent with our strategy," said Ralph B. Mandell, Chairman, President and CEO, PrivateBancorp, Inc. (the "Company") "From a cultural perspective, David T. Provost and the entire Bloomfield Hills Bancorp team share a passion for highly-personalized client service that is central to our PrivateBank franchise. We anticipate retaining management and staff and intend to operate the bank, wealth management and mortgage banking units under our PrivateBank brand."

"Our entry into the Detroit MSA is another example of our strategy to use selected acquisitions and de novo start ups to expand the reach of our private banking franchise. Combined with our earlier entries into the St. Louis and Milwaukee MSAs, we will have essentially doubled the size of our potential target market since our initial public stock offering in 1999," noted Mandell.

"We are thrilled to be aligning our future with PrivateBancorp, Inc. The transaction will provide Bloomfield Hills Bancorp's The Private Bank with the ability to better serve its current clients, as well as to reach new clients, by providing capital to support balance sheet growth, an increased legal lending limit and expanded banking, trust and wealth management product and service offerings. Additionally, we are looking forward to joining the PrivateBancorp team as executives and stockholders," said David T. Provost, Chief Executive Officer, The Private Bank of Bloomfield Hills Bancorp. Inc. "As an incentive, we intend to offer to David T. Provost and his team the opportunity to purchase up to $10 million of our common stock following the closing of the transaction," Mandell added.

The transaction, which has been approved by Bloomfield Hills Bancorp's shareholders, is expected to close in early third quarter 2005, subject to customary closing conditions and bank regulatory approval. The acquisition will be funded with a combination of cash generated from operations and debt and is expected to be accretive to the Company's 2005 diluted earnings per share.

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