MB Financial Inc. (MBFI, Financial) filed Quarterly Report for the period ended 2009-06-30.
MB Financial Inc. is a bank holding company which conducts a commercial banking business through Manufacturers Bank. MB Financial Inc. has a market cap of $490.1 million; its shares were traded at around $13.87 with and P/S ratio of 0.9. The dividend yield of MB Financial Inc. stocks is 0.3%. MB Financial Inc. had an annual average earning growth of 9.2% over the past 5 years.
Net interest income was $59.4 million for the three months ended June 30, 2009, an increase of $3.3 million, or 5.9% from $56.1 million for the comparable period in 2008. See "Net Interest Margin" section below for further analysis.
Provision for loan losses was $27.1 million in the second quarter of 2009 as compared to $12.2 million in second quarter of 2008. Net charge-offs were $25.0 million in the quarter ended June 30, 2009 compared to $8.4 million in the quarter ended June 30, 2008. The increase in our provision for loan losses was primarily due to the increases in non-performing loans and net charge-offs, and the migration of performing loans from lower risk ratings to higher risk ratings during the second quarter of 2009. The migration of performing loans to higher risk ratings was primarily due to worsening macroeconomic factors, declines in the values of collateral and deteriorating business environment during 2009. Also factoring into our provision was our loan growth over the past twelve months.
The Company had an income tax benefit of $1.4 million for the three months ended June 30, 2009 compared to an income tax benefit of $4.7 million for the same period in 2008. The decrease in income tax benefit was primarily due to a $7.3 million adjustment in the second quarter of 2008 due to the removal of valuation allowances on state net operating loss carryforwards and an adjustment of state tax contingency reserves. During the second quarter of 2008, the Company determined that based on legislation passed by the state of Illinois, that it was more likely than not that deferred tax assets would be realized in future years and the valuation reserve was removed.
Net interest income was $115.4 million for the six months ended June 30, 2009, an increase of $5.9 million, or 5.4% from $109.5 million for the comparable period in 2008. See "Net Interest Margin" section below for further analysis.
Provision for loan losses was $116.8 million in the first six months of 2009 as compared to $34.7 million in the first six months of 2008. Net charge-offs were $79.4 million in the six months ended June 30, 2009 compared to $17.3 million in the six months ended June 30, 2008. The increase in our provision for loan losses was primarily due to the increases in non-performing loans and net charge-offs, and the migration of performing loans from lower risk ratings to
Read the The complete ReportMBFI is in the portfolios of John Keeley of Keeley Fund Management.
MB Financial Inc. is a bank holding company which conducts a commercial banking business through Manufacturers Bank. MB Financial Inc. has a market cap of $490.1 million; its shares were traded at around $13.87 with and P/S ratio of 0.9. The dividend yield of MB Financial Inc. stocks is 0.3%. MB Financial Inc. had an annual average earning growth of 9.2% over the past 5 years.
Highlight of Business Operations:
The Company had net income available to common shareholders of $1.7 million for the second quarter of 2009, compared to net income available to common shareholders of $22.0 million for the second quarter of 2008. The decrease in earnings was primarily due to a $14.9 million increase in provision for loan losses and a $6.5 million increase in FDIC insurance premiums. Our 2009 second quarter results generated an annualized return on average assets of 0.20% and an annualized return on average common equity of 0.81%, compared to 1.08% and 10.11%, respectively, for the same period in 2008. Fully diluted earnings per common share for the second quarter of 2009 were $0.05 compared to $0.63 per common share in the 2008 second quarter.Net interest income was $59.4 million for the three months ended June 30, 2009, an increase of $3.3 million, or 5.9% from $56.1 million for the comparable period in 2008. See "Net Interest Margin" section below for further analysis.
Provision for loan losses was $27.1 million in the second quarter of 2009 as compared to $12.2 million in second quarter of 2008. Net charge-offs were $25.0 million in the quarter ended June 30, 2009 compared to $8.4 million in the quarter ended June 30, 2008. The increase in our provision for loan losses was primarily due to the increases in non-performing loans and net charge-offs, and the migration of performing loans from lower risk ratings to higher risk ratings during the second quarter of 2009. The migration of performing loans to higher risk ratings was primarily due to worsening macroeconomic factors, declines in the values of collateral and deteriorating business environment during 2009. Also factoring into our provision was our loan growth over the past twelve months.
The Company had an income tax benefit of $1.4 million for the three months ended June 30, 2009 compared to an income tax benefit of $4.7 million for the same period in 2008. The decrease in income tax benefit was primarily due to a $7.3 million adjustment in the second quarter of 2008 due to the removal of valuation allowances on state net operating loss carryforwards and an adjustment of state tax contingency reserves. During the second quarter of 2008, the Company determined that based on legislation passed by the state of Illinois, that it was more likely than not that deferred tax assets would be realized in future years and the valuation reserve was removed.
Net interest income was $115.4 million for the six months ended June 30, 2009, an increase of $5.9 million, or 5.4% from $109.5 million for the comparable period in 2008. See "Net Interest Margin" section below for further analysis.
Provision for loan losses was $116.8 million in the first six months of 2009 as compared to $34.7 million in the first six months of 2008. Net charge-offs were $79.4 million in the six months ended June 30, 2009 compared to $17.3 million in the six months ended June 30, 2008. The increase in our provision for loan losses was primarily due to the increases in non-performing loans and net charge-offs, and the migration of performing loans from lower risk ratings to
Read the The complete ReportMBFI is in the portfolios of John Keeley of Keeley Fund Management.
