This Day On The Street
Continue to site right-arrow
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

MB Financial, Inc. Reports Second Quarter 2012 Net Income Of $22.1 Million, Improved Return On Assets And Return On Equity And Improved Credit Metrics

Stocks in this article: MBFI

Core other expense in the second quarter of 2012 was consistent with first quarter of 2012. FDIC insurance premiums decreased due to a change in the assessment computation during the second quarter of 2012. Other real estate expense decreased as a result of lower holding costs related to OREO given we have fewer OREO properties. Other operating expenses were unusually low in the first quarter of 2012 as a result of recording a decrease during that period in the clawback liability related to our loss share agreements with the FDIC.

Core other expense increased by $1.6 million from the first six months of 2011 to the first six months of 2012. Salaries and employee benefits expense increased primarily due to annual salary increases and higher health insurance claims. FDIC insurance premiums decreased due to a change in the assessment computation during the second quarter of 2012 and the impact of improved credit quality on the computation. Other operating expenses were favorably impacted in the first half of 2012 by a decrease in the clawback liability related to our loss share agreements with the FDIC recorded during the period. Non-core other expense was primarily impacted by $1.0 million of fixed asset impairment charges due to our decision to close a branch in the first quarter of 2011.

Income Taxes

The Company had income tax expense of $9.0 million for the three months ended June 30, 2012 compared to $8.4 million for the three months ended March 31, 2012. Income tax expense was $17.5 million for the six months ended June 30, 2012 compared to a tax benefit of $11.5 million for the six months ended June 30, 2011. The change was due to the Company’s improvement in pre-tax income.

LOAN PORTFOLIO

The following table sets forth the composition of the loan portfolio, excluding loans held for sale, as of the dates indicated (dollars in thousands):

    June 30,   March 31,   December 31,   September 30,   June 30,
  2012       2012       2011       2011       2011  
  % of   % of   % of   % of   % of
  Amount   Total     Amount   Total     Amount   Total     Amount   Total     Amount   Total
Commercial related credits:
Commercial loans $ 1,079,436 19 % $ 1,040,340 18 % $ 1,113,123 19 % $ 1,042,583 18 % $ 1,108,295 19 %
Commercial loans collateralized by
assignment of lease payments (lease loans) 1,221,199 21 % 1,209,942 21 % 1,208,575 20 % 1,067,191 18 % 1,031,677 17 %
Commercial real estate 1,794,777 31 % 1,877,380 32 % 1,853,788 31 % 1,844,894 32 % 1,863,223 32 %
Construction real estate 150,665   3 % 128,040   2 % 183,789   3 % 210,206   4 % 246,557   4 %
Total commercial related credits 4,246,077   74 % 4,255,702   73 % 4,359,275   73 % 4,164,874   72 % 4,249,752   72 %
Other loans:
Residential real estate 313,137 5 % 309,644 5 % 316,787 5 % 316,305 5 % 317,821 5 %
Indirect vehicle 198,848 3 % 186,736 3 % 187,481 3 % 189,033 4 % 182,536 3 %
Home equity 323,234 6 % 327,450 6 % 336,043 6 % 348,934 6 % 357,181 6 %
Consumer loans 89,115   2 % 89,705   2 % 88,865   2 % 76,025   1 % 75,069   1 %
Total other loans 924,334   16 % 913,535   16 % 929,176   16 % 930,297   16 % 932,607   15 %
Gross loans excluding covered loans 5,170,411 90 % 5,169,237 89 % 5,288,451 89 % 5,095,171 88 % 5,182,359 87 %
Covered loans (1) 552,838   10 % 620,528   11 % 662,544   11 % 718,566   12 % 755,670   13 %
Total loans $ 5,723,249 100 % $ 5,789,765 100 % $ 5,950,995 100 % $ 5,813,737 100 % $ 5,938,029 100 %

(1) Covered loans refer to loans we acquired in FDIC-assisted transactions that are subject to loss-sharing agreements with the FDIC.

4 of 16

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!

Markets

DOW 18,053.71 +23.50 0.13%
S&P 500 2,088.77 +6.89 0.33%
NASDAQ 4,806.8590 +33.3870 0.70%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs