UPDATE 3-PrivateBancorp reports lower Q4 loss, shares up

* Q4 $0.30 loss/shr vs est $0.33 loss/shr

* Q4 net interest income up 69 pct

* Loan loss provision $69.5 mln, down 42 pct from last yr

* Says no need for additional capital in near term

* Shares up as much as 18 pct

(Adds conference call details, analysts' comments; updates share movement)

By Brenton Cordeiro

BANGALORE, Jan 25 (Reuters) - PrivateBancorp Inc (PVTB.O) reported a narrower-than-expected quarterly loss, helped by a rise in net interest income and lower provision for bad loans, sending its shares up as much as 18 percent.

The company expects loan demand to remain "tempered" in 2010, Chief Executive Larry Richman said on a post-earnings call with analysts.

PrivateBancorp, which raised $194 million through a common stock offering in the fourth quarter, said it does not foresee the need to raise additional capital in the near term.

Capital levels appear sufficient, following the company's recent capital raise, Daniel Arnold of Sandler O'Neill said.

Tier 1 risk-based capital ratio was 12.33 percent as on Dec. 31.

Chicago-based PrivateBancorp provides personalized financial services, primarily to entrepreneurial and middle-market companies, affluent individuals, wealthy families, professionals, entrepreneurs and real estate investors.

CREDIT QUALITY STILL AN ISSUE

"The exposure we hold to the commercial real estate sector, including construction, will be difficult but manageable," Chief Risk Officer Kevin Van Solkema said on the call.

About 72 percent of non-accrual loans were commercial real estate and construction loans.

Commercial real estate and construction loans continue to cause issues for the company and credit remains the overriding issue at PrivateBancorp, analyst Arnold said.

"Although credit trends in the commercial real estate sector will continue to be uneven, the company currently anticipates a first-quarter growth rate in non-performing assets to be generally in line with the fourth quarter," PrivateBancorp said.

The company had $436.9 million in total non-performing assets as on Dec. 31.

"Commercial credit costs are unlikely to peak until late 2010, and visibility with respect to the degree of commercial credit deterioration remains poor at this time," David George of Robert W. Baird said.

Q4 RESULTS

For the fourth quarter, the company reported a net loss of $18.6 million, or 30 cents a share, compared with a loss of $62.8 million, or $1.98 a share last year.

Analysts on average were looking for a loss of 33 cents a share, before items, according to Thomson Reuters I/B/E/S.

Net interest income rose 69 percent to $99.6 million during the quarter.

Provision for loan losses were $69.5 million, down 42 percent from a year ago.

Shares of the company were up $1.42 at $11.42 in afternoon trade Monday on Nasdaq. They touched a high of $11.81 earlier in the day. (Reporting by Brenton Cordeiro in Bangalore; Editing by Maju Samuel)