MB Fi­nan­cial an­nounces third quar­ter re­sults pos­i­tive

The Pak Banker - - Front Page -

CHICAGO

MB Fi­nan­cial, the hold­ing com­pany for MB Fi­nan­cial Bank, N.A an­nounced to­day third quar­ter re­sults for 2012.

The words “MB Fi­nan­cial,” “the Com­pany,” “we,” “our” and “us” re­fer to MB Fi­nan­cial, Inc. and its con­sol­i­dated sub­sidiaries, un­less in­di­cated oth­er­wise. We had net in­come and net in­come avail­able to com­mon stock­hold­ers of $23.1 mil­lion for the third quar­ter of 2012 com­pared to net in­come of $19.7 mil­lion (+17.4%) and net in­come avail­able to com­mon stock­hold­ers of $17.1 mil­lion (+35.3%) for the third quar­ter of 2011, and net in­come and net in­come avail- able to com­mon stock­hold­ers of $22.1 mil­lion (+17.8% an­nu­al­ized) for the sec­ond quar­ter of 2012. Third quar­ter earn­ings were driven by strong fee in­come growth which ex­ceeded the im­pact of net in­ter­est mar­gin com­pres­sion. While we had some large un­usual items in the quar­ter, in­clud­ing a neg­a­tive pro­vi­sion and pre­pay­ment fees, they were largely off­set­ting and had min­i­mal im­pact on our re­sults. I’m very pleased with the progress we have made over the past year in sev­eral ar­eas in­clud­ing credit qual­ity, im­prov­ing our bal­ance sheet mix and ex­e­cut­ing on our fee in­come ini­tia­tives. Re­turn on as­sets is ap­proach­ing nor­mal lev­els, and from a share­holder per­spec­tive, we are ready to re­turn more cap­i­tal to share­hold­ers in the form of higher quar­terly div­i­dends, stated Mitchell Feiger, Pres­i­dent and Chief Ex­ec­u­tive Of­fi­cer of the Com­pany.

Key items for the quar­ter were as fol­lows: Im­proved Re­turn on As­sets and Re­turn on Eq­uity. An­nu­al­ized re­turn on av­er­age as­sets in­creased to 0.97% for the third quar­ter of 2012 com­pared to 0.94% for the sec­ond quar­ter of 2012 and 0.80% for the third quar­ter of 2011. An­nu­al­ized re­turn on av­er­age com­mon eq­uity im­proved to 7.38% for the third quar­ter of 2012 com­pared to 7.28% for the sec­ond quar­ter of 2012 and 5.86% for the third quar­ter of 2011. An­nu­al­ized cash re­turn on av­er­age tan­gi­ble com­mon eq­uity in the third quar­ter of 2012 was 11.29% com­pared to 11.28% for the sec­ond quar­ter of 2012 and 9.52% for the third quar­ter of 2011.

Leas­ing rev­enues in­creased 31.9% to $9.7 mil­lion, Cap­i­tal mar­kets and in­ter­na­tional bank­ing ser­vice fees in­creased 72.3% to $1.3 mil­lion, and Com­mer­cial de­posit and trea­sury man­age­ment fees in­creased 1.3% to $5.9 mil­lion. Li­a­bil­ity repo­si­tion­ing, dis­cussed be­low, which oc­curred at the end of the quar­ter, will ad­dress the el­e­vated cash balances and is expected to have a seven to eight ba­sis point pos­i­tive im­pact on the fourth quar­ter mar­gin.

An­nu­al­ized net charge-offs to av­er­age loans for the nine months ended Septem­ber 30, 2012 im­proved to 0.03% com­pared to 3.52% for the same pe­riod in 2011.

Losses rec­og­nized on other real es­tate owned, which we view as part of our credit costs, were $3.9 mil­lion in the third quar­ter of 2012 com­pared to $5.4 mil­lion in the sec­ond quar­ter of 2012 and $3.1 mil­lion in the third quar­ter of 2011. Our non-per­form­ing loans im­proved to $105.3 mil­lion or 1.87% of to­tal loans as of Septem­ber 30, 2012 from $113.5 mil­lion or 1.98% of to­tal loans at June 30, 2012, a de­crease of $8.2 mil­lion (7.3%), and from $141.0 mil­lion or 2.42% of to­tal loans at Septem­ber 30, 2011, a de­crease of $35.7 mil­lion (-25.3%).

Our non-per­form­ing as­sets im­proved to $147.8 mil­lion or 1.56% of to­tal as­sets as of Septem­ber 30, 2012 from $163.3 mil­lion or 1.72% of to­tal as­sets as of June 30, 2012, a de­crease of $15.5 mil­lion (-9.5%), and from $228.7 mil­lion or 2.30% of to­tal as­sets as of Septem­ber 30, 2011, a de­crease of $80.9 mil­lion (-35.4%). Net in­ter­est in­come on a fully tax equiv­a­lent ba­sis de­creased $15.4 mil­lion dur­ing the nine months ended Septem­ber 30, 2012 com­pared to the nine months ended Septem­ber 30, 2011 pri­mar­ily due to a de­crease in av­er­age in­ter­est earn­ing as­sets of ap­prox­i­mately $300 mil­lion and an 11 ba­sis point de­cline in our net in­ter­est mar­gin to 3.79% on a fully tax equiv­a­lent ba­sis.

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