MB Financial Inc. (MBFI, Financial) filed Quarterly Report for the period ended 2010-03-31.
Mb Financial Inc. has a market cap of $1.2 billion; its shares were traded at around $23.25 with and P/S ratio of 2.3. The dividend yield of Mb Financial Inc. stocks is 0.2%.MBFI is in the portfolios of John Keeley of Keeley Fund Management.
Income Tax Accounting. ASC Topic 740 provides guidance on accounting for income taxes by prescribing the minimum recognition threshold that a tax position must meet to be recognized in the financial statements. ASC Topic 740 also provides guidance on measurement, recognition, classification, interest and penalties, accounting in interim periods, disclosure and transition. As of March 31, 2010, the Company had $389 thousand of uncertain tax positions. The Company elects to treat interest and penalties recognized for the underpayment of income taxes as income tax expense. However, interest and penalties imposed by taxing authorities on issues specifically addressed in ASC Topic 740 will be taken out of the tax reserves up to the amount allocated to interest and penalties. The amount of interest and penalties exceeding the amount allocated in the tax reserves will be treated as income tax expense. As of March 31, 2010, the Company had $21 thousand of accrued interest related to tax reserves. The application of income tax law is inherently complex. Laws and regulations in this area are voluminous and are often ambiguous. As such, we are required to make many subjective assumptions and judgments regarding our income tax exposures. Interpretations of and guidance surrounding income tax laws and regulations change over time. As such, changes in our subjective assumptions and judgments can materially affect amounts recognized in the consolidated balance sheets and statements of income.
The Company had net income of $947 thousand and a net loss available to common shareholders of $1.6 million for the first quarter of 2010, compared to a net loss of $28.1 million and a net loss available to common shareholders of $30.6 million for the first quarter of 2009. The results for the first quarter of 2010 generated an annualized return on average assets of 0.04% and an annualized return on average common equity of (0.61%), compared to (1.30%) and (14.01%), respectively, for the same period in 2009.
Net interest income was $80.8 million for the three months ended March 31, 2010, an increase of $24.8 million, or 44.2% from $56.0 million for the comparable period in 2009. See "Net Interest Margin" section below for further analysis.
Provision for loan losses was $47.2 million in the first quarter of 2010 as compared to $89.7 million in first quarter of 2009. Net charge-offs were $46.5 million in the quarter ended March 31, 2010, compared to $54.4 million in the quarter ended March 31, 2009.
Other expense increased from the first quarter of 2009 to the first quarter of 2010, primarily due to the FDIC-assisted transactions completed in 2009. See Note 2 of the Consolidated Financial Statements for additional information. The FDIC-assisted transactions completed in 2009 increased salaries and employee benefits expense, occupancy and equipment expense, other intangibles amortization expense and FDIC insurance premiums by approximately $4.0 million, $1.5 million, $599 thousand and $796 thousand, respectively. The FDIC-assisted transactions completed in 2009 increased total other expense from the first quarter of 2009 to the first quarter of 2010 by approximately $8.2 million. Additionally, other operating expenses increased due to OREO and non-performing loan related expense.
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Mb Financial Inc. has a market cap of $1.2 billion; its shares were traded at around $23.25 with and P/S ratio of 2.3. The dividend yield of Mb Financial Inc. stocks is 0.2%.MBFI is in the portfolios of John Keeley of Keeley Fund Management.
Highlight of Business Operations:
The Company had net income of $947 thousand and a net loss available to common shareholders of $1.6 million for the first quarter of 2010, compared to a net loss of $28.1 million and a net loss available to common shareholders of $30.6 million for the first quarter of 2009. Our 2010 first quarter results generated an annualized return on average assets of 0.04% and an annualized return on average common equity of (0.61%), compared to (1.30%) and (14.01%), respectively, for the same period in 2009. Fully diluted loss per common share for the first quarter of 2010 was ($0.03) compared to ($0.88) per common share in the 2009 first quarter.Income Tax Accounting. ASC Topic 740 provides guidance on accounting for income taxes by prescribing the minimum recognition threshold that a tax position must meet to be recognized in the financial statements. ASC Topic 740 also provides guidance on measurement, recognition, classification, interest and penalties, accounting in interim periods, disclosure and transition. As of March 31, 2010, the Company had $389 thousand of uncertain tax positions. The Company elects to treat interest and penalties recognized for the underpayment of income taxes as income tax expense. However, interest and penalties imposed by taxing authorities on issues specifically addressed in ASC Topic 740 will be taken out of the tax reserves up to the amount allocated to interest and penalties. The amount of interest and penalties exceeding the amount allocated in the tax reserves will be treated as income tax expense. As of March 31, 2010, the Company had $21 thousand of accrued interest related to tax reserves. The application of income tax law is inherently complex. Laws and regulations in this area are voluminous and are often ambiguous. As such, we are required to make many subjective assumptions and judgments regarding our income tax exposures. Interpretations of and guidance surrounding income tax laws and regulations change over time. As such, changes in our subjective assumptions and judgments can materially affect amounts recognized in the consolidated balance sheets and statements of income.
The Company had net income of $947 thousand and a net loss available to common shareholders of $1.6 million for the first quarter of 2010, compared to a net loss of $28.1 million and a net loss available to common shareholders of $30.6 million for the first quarter of 2009. The results for the first quarter of 2010 generated an annualized return on average assets of 0.04% and an annualized return on average common equity of (0.61%), compared to (1.30%) and (14.01%), respectively, for the same period in 2009.
Net interest income was $80.8 million for the three months ended March 31, 2010, an increase of $24.8 million, or 44.2% from $56.0 million for the comparable period in 2009. See "Net Interest Margin" section below for further analysis.
Provision for loan losses was $47.2 million in the first quarter of 2010 as compared to $89.7 million in first quarter of 2009. Net charge-offs were $46.5 million in the quarter ended March 31, 2010, compared to $54.4 million in the quarter ended March 31, 2009.
Other expense increased from the first quarter of 2009 to the first quarter of 2010, primarily due to the FDIC-assisted transactions completed in 2009. See Note 2 of the Consolidated Financial Statements for additional information. The FDIC-assisted transactions completed in 2009 increased salaries and employee benefits expense, occupancy and equipment expense, other intangibles amortization expense and FDIC insurance premiums by approximately $4.0 million, $1.5 million, $599 thousand and $796 thousand, respectively. The FDIC-assisted transactions completed in 2009 increased total other expense from the first quarter of 2009 to the first quarter of 2010 by approximately $8.2 million. Additionally, other operating expenses increased due to OREO and non-performing loan related expense.
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