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

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Chicago, IL (PRWEB) July 17, 2012

MB Financial, Inc. (NASDAQ: MBFI), the holding company for MB Financial Bank, N.A., announced today second quarter results for 2012, according to Mitchell Feiger, president and CEO, MB Financial, Inc.

For the second quarter ended June 30, 2012, MB Financial reported a net income of $22.1 million and net income available to common stockholders of $22.1 million. This compared to net loss of $7.4 million and net loss available to common stockholders of $10 million for the second quarter of 2011 and net income of $21.1 million and net income available to common stockholders of $17.8 million for the first quarter of 2012.

“We were pleased with our performance this quarter. Our returns are increasing and our credit quality has steadily improved. With the strength of our balance sheet and our robust capital levels and core profitability, we are positioned well in the marketplace,” said Feiger.

Key items for the quarter were as follows:

Improved Return on Assets and Return on Equity:

  • Annualized return on average assets increased to 0.94% for the second quarter of 2012 compared to 0.87% for the first quarter of 2012, driven by lower credit costs.
  • Annualized return on average common equity improved to 7.28% for the second quarter of 2012 compared to 5.94% for the first quarter of 2012. The improvement was a result of lower credit costs and the repurchase in the first quarter of 2012 of all $196 million of preferred stock issued in 2008 to the U.S. Department of Treasury as part of the Troubled Asset Relief Program (“TARP”) Capital Purchase Program. As a result, there were no TARP dividends in the second quarter of 2012 compared to $ 3.3 million in the first quarter of 2012.
  • Annualized cash return on average tangible common equity increased to 11.35% in the second quarter of 2012 from 9.36% in the first quarter of 2012.

Improved Credit Metrics:

  • MB Financial had no provision for credit losses for the second quarter of 2012, while net charge-offs were $4.4 million. The provision for credit losses and net charge-offs for the first quarters of 2012 were $3.1 million and $5.8 million, respectively.
  • Losses recognized on other real estate owned (“OREO), which MB views as credit costs, were $5.4 million in the second quarter of 2012 compared to $6.6 million in the first quarter of 2012.
  • Non-performing loans improved to $113.5 million or 1.98% of total loans as of June 30, 2012 from $124.7 or 2.15% of total loans at March 31, 2012, a decrease of $11.2 million (-9%).
  • Non-performing assets improved to $163.3 million or 1.72% of total assets as of June 30, 2012, from $187.8 million or 1.94% of total assets as of March 31, 2012, a decrease of $24.6 million (-13.1%).
  • Allowance for loan losses to non-performing loans was 107.25% as of June 30, 2012 compared to 100.59% as of March 31, 2012.

MB Financial, Inc., a Chicago-based financial holding company, is the parent company of MB Financial Bank, N.A. MB Financial Bank is a locally-operated financial institution that has been delivering competitive personalized service for over 100 years to businesses and individuals who live and work in the Chicago metropolitan area. MB Financial Bank has approximately 90 locations throughout the Chicagoland area. More information about the company and second quarter earnings can be found at http://www.mbfinancial.com.