Creates a strong cross-border platform to deepen client
relationships
TORONTO, June 23, 2017 /PRNewswire/ - CIBC (TSX:
CM) (NYSE: CM) today announced that it has completed the
acquisition of Chicago-based
PrivateBancorp, Inc. and its subsidiary, The PrivateBank.
"Today marks an exciting new chapter for both CIBC and The
PrivateBank," said Victor Dodig, President and CEO, CIBC. "By
combining the resources, capabilities and the talented teams of our
two organizations, we are creating a strong cross-border platform
for CIBC to serve a broader range of clients and deliver growth to
our shareholders. We are delighted to welcome The PrivateBank's
1,300 team members to the CIBC family. Our shared passion and
commitment to fostering a client-first culture, will serve us well
as we work to build integrated U.S. businesses and establish CIBC
as a strong, innovative relationship-oriented North American
bank."
Based on the closing price on the New York Stock Exchange of
CIBC's common shares on June 22, 2017
of US$80.95, the total transaction
value is approximately US$5.0 billion
and will be paid with approximately US$2.4
billion in cash and approximately 32.3 million CIBC shares.
CIBC expects the transaction will be accretive to earnings per
share within three years.
The U.S. region will operate under a unified CIBC brand, with
rebranding activities beginning in the fiscal fourth quarter.
Beginning in the fiscal third quarter, CIBC will report financial
results for its U.S. region as a separate Strategic Business
Unit.
As previously announced, Larry
Richman will lead CIBC's U.S. region as Senior Executive
Vice-President and Group Head, U.S. Region, and President &
CEO, The PrivateBank, and will remain president and chief executive
officer of The PrivateBank.
"On behalf of The PrivateBank team, we are delighted to be
joining CIBC," said Mr. Richman. "From the very beginning, this
transaction was about giving us added financial strength and the
benefits of a larger banking enterprise to do more for our clients
and our communities. This new combination will, over time, allow us
to build a premier North American bank to deliver a broader set of
products and services through our differentiated,
relationship-based approach."
About CIBC
CIBC is a leading Canadian-based global financial institution
with 11 million personal banking, business, public sector and
institutional clients. Across Personal and Small Business Banking,
Commercial Banking and Wealth Management, and Capital Markets
businesses, CIBC offers a full range of advice, solutions and
services through its leading digital banking network, and locations
across Canada, in the United States and around the
world. Ongoing news releases and more information about CIBC can be
found at www.cibc.com/ca/media-centre/.
Forward-Looking Statements
Certain statements contained in this communication may be deemed
to be forward-looking statements under certain securities laws. All
such statements are made pursuant to the "safe harbor" provisions
of, and are intended to be forward-looking statements under
applicable Canadian and U.S. securities legislation, including
the United States Private
Securities Litigation Reform Act of 1995. These statements
include, but are not limited to, any statements about the expected
effects of the acquisition of PrivateBancorp by CIBC including any
expected impact on CIBC's earnings, Common Equity Tier 1 ratio or
other statements other than in relation to historical facts,
statements about the operations, business lines, financial
condition, risk management, priorities, targets, ongoing
objectives, strategies of PrivateBancorp and CIBC and the
regulatory environment in which they operate and outlook for
calendar year 2017 and subsequent periods. Forward-looking
statements are typically identified by the words "believe",
"expect", "anticipate", "intend", "estimate", "forecast", "target",
"objective" and other similar expressions or future or conditional
verbs such as "will", "should", "would" and "could". By their
nature, these statements require us to make assumptions, including
the economic assumptions set out in the reports of PrivateBancorp
and CIBC filed with the SEC, and are subject to inherent risks and
uncertainties that may be general or specific. A variety of
factors, many of which are beyond our control, affect our
operations, performance and results, and could cause actual results
to differ materially from the expectations expressed in any of our
forward-looking statements. These factors include: credit,
market, liquidity, strategic, insurance, operational, reputation
and legal, regulatory and environmental risk; the effectiveness and
adequacy of our risk management and valuation models and processes;
legislative or regulatory developments in the jurisdictions where
we operate, including the Dodd-Frank Wall Street Reform and
Consumer Protection Act and the regulations issued and to be issued
thereunder, the Organisation for Economic Co-operation and
Development Common Reporting Standard, and regulatory reforms in
the United Kingdom and
Europe, the Basel Committee on
Banking Supervision's global standards for capital and liquidity
reform and those relating to bank recapitalization legislation and
the payments system in Canada;
amendments to, and interpretations of, risk-based capital
guidelines and reporting instructions, and interest rate and
liquidity regulatory guidance; the resolution of legal and
regulatory proceedings and related matters; the effect of changes
to accounting standards, rules and interpretations; changes in our
estimates of reserves and allowances; changes in tax laws; changes
to our credit ratings; political conditions and developments,
including changes relating to economic or trade matters; the
possible effect on our business of international conflicts and the
war on terror; natural disasters, public health emergencies,
disruptions to public infrastructure and other catastrophic events;
reliance on third parties to provide components of our business
infrastructure; potential disruptions to our information technology
systems and services; increasing cyber security risks which may
include theft of assets, unauthorized access to sensitive
information, or operational disruption; social media risk; losses
incurred as a result of internal or external fraud; anti-money
laundering; the accuracy and completeness of information provided
to us concerning clients and counterparties; the failure of third
parties to comply with their obligations to us and our affiliates
or associates; intensifying competition from established
competitors and new entrants in the financial services industry
including through internet and mobile banking; technological
change; global capital market activity; changes in monetary and
economic policy; currency value and interest rate fluctuations,
including as a result of market and oil price volatility; general
business and economic conditions worldwide, as well as in
Canada, the U.S. and other
countries where we and CIBC have operations, including increasing
Canadian household debt levels and global credit risks; our success
in developing and introducing new products and services, expanding
existing distribution channels, developing new distribution
channels and realizing increased revenue from these channels;
changes in client spending and saving habits; our ability to
attract and retain key employees and executives; our ability to
successfully execute our strategies and complete and integrate
acquisitions and joint ventures; the risk that expected synergies
and benefits of the merger between PrivateBancorp and CIBC will not
be realized within the expected time frame or at all; and our
ability to anticipate and manage the risks associated with these
factors. This list is not exhaustive of the factors that may
affect any of our forward-looking statements. These and other
factors should be considered carefully and readers should not place
undue reliance on our forward-looking statements. Additional
information about these factors can be found in the reports filed
by PrivateBancorp and CIBC with the SEC. Any forward-looking
statements contained in this communication represent the views of
management only as of the date hereof and are presented for the
purpose of assisting our stockholders and financial analysts in
understanding our financial position, objectives and priorities and
anticipated financial performance as at and for the periods ended
on the dates presented, and may not be appropriate for other
purposes. We do not undertake to update any forward-looking
statement that is contained in this communication or in other
communications except as required by law.
SOURCE CIBC - Corporate