[2] MB Financial, Inc. Reports 1999 Fourth Quarter Net Income of $2.9 Million; $0.41 Per Share, an Increase of 720% Over Fourth Quarter 1998.Business Editors CHICAGO--(BUSINESS WIRE)--Jan. 20, 2000 1999 year end net income of $10.0 million was a 59% increase over 1998. 1999 earnings per share of $1.51 was 20% higher than 1998. MB Financial, Inc. (NASDAQ NASDAQ in full National Association of Securities Dealers Automated Quotations U.S. market for over-the-counter securities. Established in 1971 by the National Association of Securities Dealers (NASD), NASDAQ is an automated quotation system that reports on : MBFI MBFI Multiplex Bus Fault Isolator ), the holding company for Manufacturers Bank, announced today fourth quarter net income of $2.9 million compared to $439 thousand for the fourth quarter of 1998, an increase of 556%. Basic earnings per share for the fourth quarter of 1999 was up 720% to $0.41 compared to $0.05 for the fourth quarter of 1998. Cash earnings to common stockholders increased 295% to $3.4 million for the fourth quarter of 1999 compared to $850 thousand for the fourth quarter of 1998. Basic cash earnings per share was $0.47 for the fourth quarter of 1999. Net income was $10.0 million, or $1.51 per basic share, for the year ended December December: see month. 31, 1999 compared to $6.3 million, or $1.26 per basic share, for the year ended December 31, 1998. Net income for the year ended 1998 included a $2.7 million net of tax gain from the sale of Coal City National Bank in the first quarter of 1998. Net income increased for the year ended December 31, 1999 due to the Company's merger and continued growth in its commercial and lease banking businesses. Cash earnings to common stockholders was $11.8 million, an increase of 55.0%, for the year ended December 31, 1999 compared to $7.6 million for the year ended December 31, 1998. Basic cash earnings per share was $1.80 for the year ended December 31, 1999. On February February: see month. 26, 1999, Coal City Corporation, the holding company for Manufacturers Bank, was merged with and into Avondale Avondale may refer to: In United States geography:
FSB savings bank - a thrift institution in the northeastern United States; since deregulation in the 1980s they offer services competitive with many commercial banks . The resulting entity was renamed MB Financial, Inc. (the Company). At the same time, Avondale Federal Savings Bank was merged into Manufacturers Bank. Since Coal City stockholders owned more than 50% of the combined company, the transaction was accounted for as a reverse acquisition using the purchase method of accounting with Coal City being the accounting acquirer. As a result, the post-merger historical financial statements of the combined company are Coal City's as the accounting acquirer, and includes the operating results of Avondale since March 1999. Mitchell Mitchell, city (1990 pop. 13,798), seat of Davison co., SE S.Dak.; inc. 1881. Mitchell is a trade, distribution, and shipping center for a dairy and livestock area. Feiger, President and Chief Executive Officer of MBFI said, &uot;We are pleased with our results this past year. We were able to quickly assimilate as·sim·i·late v. 1. To consume and incorporate nutrients into the body after digestion. 2. To transform food into living tissue by the process of anabolism. our largest merger, while improving our already strong performance in our core banking business, middle market banking. During 2000, we expect to continue this focus, while making efforts to reduce operating expenses Operating expenses The amount paid for asset maintenance or the cost of doing business, excluding depreciation. Earnings are distributed after operating expenses are deducted. throughout the Company.&uot; RESULTS OF OPERATIONS The Company had net income of $2.9 million for the quarter ended December 31, 1999 compared to $439 thousand for the quarter ended December 31, 1998. Net interest income was $11.1 million for the fourth quarter of 1999 compared to $6.9 million for the same period in 1998. The increase in net interest income was due to the merger and the Company's continued growth in its commercial and lease banking businesses. Other income increased $787 thousand to $2.2 million for the quarter ended December 31, 1999 from $1.4 million for the quarter ended December 31, 1998. The increase was primarily due to increases in loan service fees and other operating income Operating Income The profit realized from a business' own operations. Notes: This would not include income from things such as investments in other firms. Also referred to as operating profit or recurring profit. with offsetting decreases in net lease financing and net gains on sale of securities available-for-sale for the fourth quarter of 1999 compared to the fourth quarter of 1998. Other expense increased from $7.4 million for the fourth quarter of 1998 to $8.6 million for the fourth quarter of 1999 primarily from higher operating costs operating costs npl → gastos mpl operacionales of a larger company as a result of the merger. These higher costs included increases in salaries and employee benefits, occupancy Gaining or having physical possession of real property subject to, or in the absence of, legal right or title. In a fire insurance policy, for example, the term occupancy and equipment expenses as well as other operating expenses. Additionally, intangible amortization decreased for the fourth quarter of 1999 compared to the fourth quarter of 1998 as the Company utilizes an accelerated amortization method which amortizes more of the purchase premium related to acquisitions in early years than in later years. Net income was $10.0 million for the year ended December 31, 1999 compared to $6.3 million for the year ended December 31, 1998. Net income for the year ended 1998 included a $2.7 million net of tax gain from the sale of Coal City National Bank in the first quarter of 1998. Net interest income for the year ended December 31, 1999 was $40.5 million compared to $27.8 million for the year ended December 31, 1998. The increase in net interest income was due to the merger and the Company's continued growth in its commercial and lease banking businesses. For the year ended December 31, 1999, other income decreased $878 thousand to $9.1 million from $9.9 million for the year ended December 31, 1998. The decrease was primarily due to the $4.1 million gain resulting from the sale of Coal City National Bank and a $200 thousand gain on the sale of a trust business in the first quarter of 1998. In addition, loan service fees and other operating income increased while net lease financing decreased for the year ended December 31, 1999 compared to the same period in 1998. For the year ended December 31, 1999, other expense increased $6.5 million to $33.6 million from $27.0 million for the year ended December 31, 1998. The increase was primarily due to higher operating costs associated with additional branches and personnel acquired through the merger. These higher operating costs included increases in salaries and employee benefits, occupancy and equipment expenses and other operating expenses. Additionally, intangible amortization decreased for the year ended 1999 compared to the year ended 1998 as the Company utilizes an accelerated amortization method which amortizes more of the purchase premium related to acquisitions in early years than in later years. NET INTEREST MARGIN The following table sets forth a summary of the Company's net interest income, average earning assets Earning Assets Any income-earning asset owned by a company. Notes: These assets are generally interest-bearing accounts, bonds, and securities available for sale. See also: Asset, Asset Valuation, Earnings, Net Interest Margin and net interest margin (dollar amounts in thousands):
Three Months Ended Year Ended
------------------------------------------------------
December 31, December 31, December 31, December 31,
1999 1998 1999 1998
------------------------------------------------------
Net interest
income $ 11,063 $ 6,914 $ 40,524 $ 27,806
Average earning
assets $1,143,206 $ 803,659 $1,085,996 $ 760,750
Net interest
margin (1) 3.85 % 3.43 % 3.75 % 3.68 %
Net interest
margin 3.84 % 3.41 % 3.73 % 3.66 %
(1) Net interest margin is presented on a fully tax equivalent basis
assuming a 35% tax rate for 1999 and a 34% tax rate for 1998.
The Company's net interest income increased $4.1 million to $11.1 million for the quarter ended December 31, 1999 from $6.9 million for the quarter ended December 31, 1998. The increase in net interest income resulted from an increase in interest income of $7.9 million, or 53.4%, partially offset by an increase in interest expense of $3.7 million, or 47.5%. Interest income increased due to a $339.5 million, or 42.3%, increase in average interest earning assets, while interest expense rose as a result of a $332.7 million, or 48.5%, increase in average interest bearing liabilities. Approximately ap·prox·i·mate adj. 1. Almost exact or correct: the approximate time of the accident. 2. $354.0 million of the increase in average interest earning assets and approximately $309.0 million of the increase in average interest bearing liabilities was due to the merger. The net interest margin increased from 3.41% for the quarter ended December 31, 1998 to 3.84% for the same period in 1999. The 1998 net interest margin was lower due to increased leverage in the Company's balance sheet for the fourth quarter of 1998 consisting of approximately $100.9 million additional U.S. Treasury U.S. Treasury Created in 1798, the United States Department of the Treasury is the government (Cabinet) department responsible for issuing all Treasury bonds, notes and bills. Some of the government branches operating under the U.S. Treasury umbrella include the IRS, U.S. investments and approximately $101.3 million additional repurchase agreements Repurchase agreement An agreement with a commitment by the seller (dealer) to buy a security back from the purchaser (customer) at a specified price at a designated future date. used to fund those investments. Excluding the effect of the increased leverage in the Company's balance sheet, the net interest margin for the fourth quarter of 1998 would be 3.92%. For the year ended December 31, 1999, net interest income increased $12.7 million to $40.5 million from $27.8 million for the year ended December 31, 1998. Approximately $9.8 million of the increase related to loans acquired through the merger while approximately $2.9 million was from the Company's continued growth in its commercial and lease banking businesses. Interest income resulted from an increase in interest income of $24.7 million, or 42.8%, partially offset by an increase in interest expense of $11.9 million, or 40.0%. Interest income increased due to a $325.2 million, or 42.8%, increase in average interest earning assets, while interest expense rose as a result of a $319.2 million, or 49.7%, increase in average interest bearing liabilities. Approximately $295.0 million of the increase in average interest earning assets and approximately $257.0 million of the increase in average interest bearing liabilities was due to the merger. The remaining increase in average interest earning assets and average interest bearing liabilities was due to growth in the Company's commercial and lease banking businesses. The net interest margin increased from 3.66% for the year ended December 31, 1998 to 3.73% for the year ended December 31, 1999. OTHER INCOME Other income increased $787 thousand to $2.2 million for the quarter ended December 31, 1999 from $1.4 million for the quarter ended December 31, 1998. This increase was primarily due to a $746 thousand increase in loan service fees due to the acquisition of loan servicing Loan servicing is the process by which a mortgage bank or subservicing firm collects the timely payment of interest and principal from borrowers. The level of service varies depending on the type loan and the terms negotiated between the firm and the investor seeking their services. activities acquired through the merger, as well as a $314 thousand increase in other operating income due to a $144 thousand increase in automated teller machine automated teller machine (ATM), device used by bank customers to process account transactions. Typically, a user inserts into the ATM a special plastic card that is encoded with information on a magnetic strip. fees and $136 thousand increase in brokerage BROKERAGE, contracts. The trade or occupation of a broker; the commissions paid to a broker for his services. fees as a result of additional branch facilities and the expansion of brokerage servicing fee activities acquired through the merger. Offsetting this increase was a net lease financing decrease of $264 thousand due to a $336 thousand write down in the residual value Residual value Usually refers to the value of a lessor's property at the time the lease expires. residual value The price at which a fixed asset is expected to be sold at the end of its useful life. of lease equipment in the fourth quarter. In addition, net gains-on-sale of securities available for sale decreased $131 thousand for the fourth quarter of 1999 compared to the fourth quarter of 1998. For the year ended December 31, 1999, other income decreased $878 thousand to $9.1 million from $9.9 million for the year ended December 31, 1998. 1998 included a $4.1 gain resulting from the sale of Coal City National Bank and a $200 thousand gain on the sale of a trust business in the first quarter of 1998. Without these special items in 1998, other income would have been $5.6 million. Loan service fees increased $3.2 million for the year ended December 31, 1999 due to the acquisition of loan servicing activities acquired through the merger and other operating income increased $793 thousand due to a $631 thousand increase in brokerage fees and a $278 thousand increase in automated teller machine fees resulting from the expansion of brokerage servicing fee activities and additional branch facilities acquired through the merger. Offsetting these increases was a net lease financing decrease of $694 due to a $336 thousand write down in the residual value of lease equipment and 1998 included some gains for equipment sold at the end of the lease terms. OTHER EXPENSE Other expense increased from $7.4 million for the quarter ended December 31, 1998 to $8.6 million for the quarter ended December 31, 1999 primarily from higher operating costs of a larger company as a result of the merger. These higher costs included a $1.1 million increase in salaries and employee benefits and a $625 thousand increase in occupancy and equipment expenses for the fourth quarter of 1999 compared to the same period for 1998. Other operating expenses decreased $394 thousand primarily due to a $719 thousand operating loss operating loss The excess of operating expenses over revenue. As with operating income, operating losses exclude revenues and expenses from operations that are not considered a regular part of the business. Also called deficit. Compare operating income. and an additional $200 thousand reserve for other real estate owned Real Estate Owned Property owned by a lender - usually a bank - after an unsuccessful sale at a foreclosure auction. This is common because most of the properties up for sale at these auctions are worth less than the total amount owed to the bank: the minimum bid in most costs for the fourth quarter of 1998. Other operating expenses also increased $525 thousand for the fourth quarter of 1999 compared to the fourth quarter of 1998 as a result of the merger. In addition, intangible amortization expense decreased $207 thousand for the fourth quarter of 1999 compared to the same period for 1998. The decrease in intangible amortization represents a decrease in goodwill amortization of $45 thousand and a decrease in core deposit intangible amortization of $162 thousand. The Company utilizes an accelerated amortization method which amortizes more of the purchase premium related to acquisitions in early years than in later years. For the year ended December 31, 1999 other expense increased $6.5 million to $33.6 million from $27.0 million for the year ended December 31, 1998. The increase was primarily due to operating costs associated with additional branches and personnel acquired through the merger. Salaries and employee benefits increased $4.3 million, occupancy and equipment expenses increased $1.7 million and other operating expenses increased $1.4 million for the year ended December 31, 1999 compared to the year ended December 31, 1998. The increase in other operating expenses included a $362 thousand increase in computer services Data processing (timesharing, batch processing), software development and consulting services. See service bureau, SaaS and ASP. due to improvements made to the Company's computer systems, a $312 thousand increase in loan collection expenses, a $177 thousand increase in advertising and marketing, $125 thousand increase in automated teller machine (ATM) expense, the result of distributing new ATM's in our network, $167 thousand increase in Federal Deposit Insurance Corporation Federal Deposit Insurance Corporation (FDIC), an independent U.S. federal executive agency designed to promote public confidence in banks and to provide insurance coverage for bank deposits up to $100,000. premiums as well as $157 thousand increase in stationary Stationary can mean:
BALANCE SHEET Total assets increased $437.7 million to $1.3 billion at December 31, 1999 compared to $871.9 million at December 31, 1998. Assets increased $491.0 million due to the merger. Securities available for sale increased $59.3 million at December 31, 1999 compared to December 31, 1998 primarily due to a $143.7 million increase related to the merger. Offsetting this increase was a $71.5 million increase in securities available for sale funded by short-term Short-term Any investments with a maturity of one year or less. short-term 1. Of or relating to a gain or loss on the value of an asset that has been held less than a specified period of time. borrowings. Net loans increased $351.3 million from $542.0 million at December 31, 1998 to $893.3 million at December 31, 1999. Approximately $205.9 million of the increase in net loans was due to the merger while the remainder of the increase was due to strong loan demand in the Company's commercial and lease banking businesses. Total deposits increased $290.4 million from $645.7 million at December 31, 1998 to $936.1 million at December 31, 1999. The increase in deposits was related to the merger. Short-term borrowings increased $114.0 million at December 31, 1999 compared to December 31, 1998 primarily attributable attributable emanating from or pertaining to attribute. attributable proportion see attributable risk (below). attributable risk to $100.0 million of advances from the Federal Home Loan Bank acquired through the merger. The Company had additional increases in short-term borrowings of $56.0 million in Federal funds Federal Funds Funds deposited to regional Federal Reserve Banks by commercial banks, including funds in excess of reserve requirements. Notes: These non-interest bearing deposits are lent out at the Fed funds rate to other banks unable to meet overnight reserve purchased and $25.0 million of advances from the Federal Home Loan Bank. Offsetting the increases in short-term borrowings was a $69.4 million decrease in repurchase agreements. The Company's total risk-based capital ratio Risk-based capital ratio Bank requirement that there be a minimum ratio of estimated total capital to estimated risk-weighted asset. was 10.01%, Tier 1 capital Tier 1 Capital A term used to describe the capital adequacy of a bank. Tier I capital is core capital, this includes equity capital and disclosed reserves. Notes: Equity capital includes instruments that can't be redeemed at the option of the holder. to risk-weighted assets Risk-Weighted Assets In terms of the minimum amount of capital that is required within banks and other institutions, based on a percentage of the assets, weighted by risk. Notes: The idea of risk-weighted assets is a move away from having a static requirement for capital. ratio was 8.85%, and Tier 1 capital to average asset ratio was 7.47% at December 31, 1999. The FDIC FDIC See: Federal Deposit Insurance Corporation FDIC See Federal Deposit Insurance Corporation (FDIC). has categorized cat·e·go·rize tr.v. cat·e·go·rized, cat·e·go·riz·ing, cat·e·go·riz·es To put into a category or categories; classify. cat the bank subsidiary as &uot;Well-Capitalized&uot; at December 31, 1999. As of December 31, 1999, the Company's book value per share was $11.21 compared to $11.46 at December 31, 1998. The 1998 book value was calculated using an exchange ratio of 83.5. ASSET QUALITY The following table presents a summary of non-performing assets as of the dates indicated (dollars in thousands):
December 31, December 31,
1999 1998
--------------------------
Non-accruing loans:
Originated by Manufacturers Bank $ 3,670 $ 4,789
Acquired from Avondale
Federal Savings Bank 7,031 -
--------------------------
Total non-accruing loans 10,701 4,789
--------------------------
Loans 90 days or more past due,
still accruing interest:
Originated by Manufacturers Bank - 85
Acquired from Avondale
Federal Savings Bank - -
--------------------------
Total loans 90 days or more
past due, still accruing interest - 85
--------------------------
Total non-performing loans 10,701 4,874
--------------------------
Other real estate owned:
Originated by Manufacturers Bank 159 442
Acquired from Avondale
Federal Savings Bank 194 -
--------------------------
Total other real estate owned 353 442
--------------------------
Total non-performing assets $ 11,054 $ 5,316
--------------------------
Total non-performing loans to total loans 1.18 % 0.89 %
Total non-performing assets to total assets 0.84 % 0.61 %
A reconciliation of the activity in the Company's allowance for loan
losses follows (dollars in thousands):
Three Months Ended Year Ended
------------------------------------------------
Dec. 31, Dec. 31, Dec. 31, Dec. 31,
1999 1998 1999 1998
------------------------------------------------
Balance at beginning
of period $13,203 $7,245 $6,344 $7,922
Decreases resulting
from sale of subsidiary - - - (399)
Additions resulting
from the merger - - 9,489 -
Provision for loans losses 363 187 1,260 750
Charge-offs:
Originated by
Manufacturers Bank (358) (1,095) (1,898) (2,090)
Acquired from Avondale
Federal Savings Bank (1,086) - (3,600) -
------------------------------------------------
Total charge-offs (1,444) (1,095) (5,498) (2,090)
------------------------------------------------
Recoveries:
Originated by
Manufacturers Bank 33 7 45 161
Acquired from Avondale
Federal Savings Bank 42 - 557 -
------------------------------------------------
Total recoveries 75 7 602 161
------------------------------------------------
Balance at December 31, $12,197 $6,344 $12,197 $6,344
------------------------------------------------
Total loans at
December 31, $905,485 $548,353 $905,485 $548,353
Ratio of allowance
to total loans 1.35 % 1.16 % 1.35 % 1.16 %
The Company maintains its allowance for loan losses at a level that management believes will be adequate to absorb absorb To offset sell orders or a new security offering with buy orders. estimated losses on existing loans based on an evaluation of the collectibility of loans and prior loss experience. In January January: see month. 1998, Coal City National Bank was sold reducing the allowance for loan losses by $399 thousand. In February 1999, $9.5 million was added to the allowance for loan losses with the merger. Based on credit scoring Credit scoring A statistical technique that combines several financial characteristics to form a single score to represent a customer's creditworthiness. and other criteria criteria (krītēr´ē  ),n. , the Company estimated the loan losses associated with the loan portfolio acquired through the merger with Avondale. At the time of the merger, the estimated losses were fully reserved with an addition to the allowance for loan losses by Avondale. To date, merger related losses are consistent with the estimated losses indicated by the credit scoring models and other criteria. The provision for loan losses for continued growth in the Company's loan portfolio increased $176 thousand for the fourth quarter of 1999 and increased $510 thousand for the year ended December 31, 1999 compared to the respective periods in 1998. CASH EARNINGS The purchase method of accounting has been used to record each of the Company's acquisitions. As a result, the recorded basis of the net assets Net assets The difference between total assets on the one hand and current liabilities and noncapitalized long-term liabilities on the other hand. net assets See owners' equity. of the acquired entities has been adjusted to fair value. Adjustments included recording core deposit intangibles Property that is a "right" such as a patent, Copyright, or trademark, or one that is lacking physical existence, such as good will. to reflect the difference between the fair value and underlying basis of deposits purchased and recording goodwill for the excess of the acquisition cost over the fair value of net assets acquired. Core deposit intangibles and goodwill are being amortized as a non-cash expense Noun 1. non-cash expense - an expense (such as depreciation) that is not paid for in cash disbursal, disbursement, expense - amounts paid for goods and services that may be currently tax deductible (as opposed to capital expenditures) over periods of up to eight and 20 years, respectively. Amortization expense reduces net income during the amortization periods. If the Company's acquisitions had met certain accounting rules, the pooling of interest Noun 1. pooling of interest - an accounting method used in the merging of companies; the balance sheets are added together item by item; this method is tax-free method of accounting may have been used to account for the Company's acquisitions. Under this method of accounting, no goodwill or core deposit intangibles would have been recorded. Consequently, net income is not reduced for the amortization of core deposit intangibles or goodwill. Since application of the two methods can result in dramatically different net income, management, certain analysts and certain peer financial institutions have been computing computing - computer cash earnings in order to compare results. At present, cash earnings is not a defined term or concept under generally accepted accounting principles The standard accounting rules, regulations, and procedures used by companies in maintaining their financial records. Generally accepted accounting principles (GAAP) provide companies and accountants with a consistent set of guidelines that cover both broad accounting . The following table sets forth the Company's cash earnings, which is defined by management as net income excluding amortization of purchase accounting non-cash items and the related deferred income tax effect (dollars in thousands):
Three Months Ended Year Ended
---------------------------------------
Dec. 31, Dec. 31, Dec. 31, Dec. 31,
1999 1998 1999 1998
---------------------------------------
Net income $ 2,882 $ 439 $ 9,954 $ 6,255
Goodwill amortization 204 250 815 952
Core deposit intangibles
amortization (net of tax) 269 379 1,077 1,519
---------------------------------------
Cash earnings 3,355 1,068 11,846 8,726
Preferred dividends - 218 - 1,085
---------------------------------------
Cash earnings to
common stockholders $ 3,355 $ 850 $11,846 $7,641
---------------------------------------
Cash earnings per share: (1)(3)
Basic $ 0.47 $ 0.21 $ 1.80 $ 1.87
Diluted $ 0.47 $ 0.21 $ 1.80 $ 1.86
Performance ratios: (2)(3)
Cash return on average
tangible assets 1.07 % 0.44 % 1.01 % 0.94 %
Cash return on average
tangible equity 19.80 % 9.34 % 20.45 % 20.19 %
(1) Basic earnings per share is calculated by dividing the cash
earnings by the average number of common shares outstanding for
the period. Diluted earnings per share is calculated by dividing
the cash earnings by the average number of common shares
outstanding for the period, including additional shares that
would have been outstanding if dilutive potential shares had been
issued.
(2) Cash return on average tangible assets and equity has been
annualized for the three months ended December 31, 1999 and 1998.
(3) The ratios for the year ended December 31, 1998 include the $4.1
million pre-tax gain-on-sale of Coal City National Bank. Basic
and diluted cash earnings per share, excluding the gain-on-sale
of Coal City National Bank, would have been $1.21. Cash return on
average tangible assets and equity, excluding the gain-on-sale of
Coal City National Bank, would have been 0.61% and 13.06%
respectively.
This news release may contain forward-looking statements that
involve risk and uncertainties, with respect to the results of
operations and other uncertainties which may not be known or
anticipated by the Company. While management of the Company uses its
best efforts to be accurate in making forward-looking statements, any
such statements are subject to risks and uncertainties that could
cause the Company's actual results to vary materially from the future
results indicated in such forward-looking statements.
TABLES TO FOLLOW
MB FINANCIAL, INC.
CONSOLIDATED BALANCE SHEETS
(Unaudited)
(Statement Amounts in Thousands)
December 31, December 31,
1999 1998
------------------------------
ASSETS
Cash and due from banks $ 29,420 $ 23,669
Investment securities:
Securities available for sale 271,313 212,020
Securities held to maturity
(fair value of $11,529 at
December - 11,142
Stock in Federal Home Loan Bank 6,290 2,614
Federal funds sold - 20,350
Other interest bearing deposits 1,487 -
Loans (net of allowance for loan
losses of $12,197 at December 31,
1999 and $6,344 at December 31,
1998) 893,288 542,009
Lease investments, net 38,034 21,931
Premises and equipment, net 12,554 11,483
Other assets 26,335 8,380
Interest only securities 14,999 -
Intangibles, net 15,821 18,293
------------------------------
Total assets $ 1,309,541 $ 871,891
==============================
LIABILITIES AND
STOCKHOLDERS' EQUITY
Liabilities
Deposits:
Noninterest bearing $ 145,059 $ 128,218
Interest bearing 791,016 517,443
------------------------------
Total deposits 936,075 645,661
Short-term borrowings 244,569 130,521
Long-term borrowings 32,698 37,034
Other liabilities 16,984 11,815
------------------------------
Total liabilities 1,230,326 825,031
------------------------------
Stockholders' Equity
Common stock, (December 31, 1999
$0.01 par value; authorized
20,000,000 shares; issued
7,064,515 shares; December 31,
1998 no par value, $10 stated
value; authorized 200,000
shares; issued 48,957 shares) 71 490
Additional paid-in capital 50,656 23,794
Retained earnings 32,186 22,232
Accumulated other
comprehensive income (3,698) 344
------------------------------
Total stockholders'
equity 79,215 46,860
------------------------------
Total liabilities and
stockholders' equity $ 1,309,541 $ 871,891
==============================
CONSOLIDATED STATEMENTS OF INCOME
(Statement Amounts in Thousands except Common Share Data)
(Unaudited)
Three Months Ended Year Ended
December 31, December 31,
-------------------------------------
1999 1998 1999 1998
-------------------------------------
Interest Income:
Loans $17,952 $11,446 $63,887 $44,929
Investment securities:
Taxable 4,568 3,172 17,228 11,787
Nontaxable 79 80 320 305
Federal funds sold 34 69 796 611
Other interest bearing accounts 13 - 60 -
-------------------------------------
Total interest income 22,646 14,767 82,291 57,632
-------------------------------------
Interest expense:
Deposits 8,362 5,497 31,059 22,319
Short-term borrowings 2,452 1,683 5,381 5,118
Long-term borrowings 769 673 5,327 2,389
-------------------------------------
Total interest expense 11,583 7,853 41,767 29,826
-------------------------------------
Net interest income 11,063 6,914 40,524 27,806
Provision for loan losses 363 187 1,260 750
-------------------------------------
Net interest income after
provision for loan losses 10,700 6,727 39,264 27,056
-------------------------------------
Other income:
Loan service fees 890 144 3,532 374
Deposit service fees 889 767 3,304 3,174
Lease financing, net (35) 229 724 1,418
Net gains on sale of securities
available for sale - 131 1 167
Gain on sale of Coal City
National Bank - - - 4,099
Other operating income 424 110 1,501 708
-------------------------------------
2,168 1,381 9,062 9,940
-------------------------------------
Other expense:
Salaries and employee benefits 4,251 3,121 17,214 12,954
Occupancy and equipment expenses 1,725 1,100 6,085 4,402
Intangibles amortization expense 618 825 2,472 3,254
Other operating expenses 2,002 2,396 7,789 6,427
-------------------------------------
8,596 7,442 33,560 27,037
-------------------------------------
Income before income taxes and
minority interest 4,272 666 14,766 9,959
Income taxes 1,390 210 4,812 3,605
-------------------------------------
Income before minority
interest 2,882 456 9,954 6,354
Minority interest - (17) - (99)
-------------------------------------
Net income 2,882 439 9,954 6,255
-------------------------------------
Other comprehensive income:
Unrealized securities gains
(losses), net of income (963) (444) (4,041) 133
Less: reclassification
adjustments for gains included
in net income, net of income
taxes - 87 1 110
-------------------------------------
Other comprehensive income (963) (531) (4,042) 23
-------------------------------------
Comprehensive income $ 1,919 $ (92) $ 5,912 $ 6,278
=====================================
Net income $ 2,882 $ 439 $ 9,954 $ 6,255
Preferred stock dividend - 218 - 1,085
-------------------------------------
Net income available to common
stockholders $ 2,882 $ 221 $ 9,954 $ 5,170
=====================================
Common share data:
Basic earnings per common share $ 0.41 $ 0.05 $ 1.51 $ 1.26
Diluted earnings per common
share $ 0.41 $ 0.05 $ 1.51 $ 1.25
Weighted average common shares
outstanding (1) 7,064,515 4,087,910 6,586,596 4,093,254
(1) 1998 was converted at an exchange ratio of 83.5
MB Financial, Inc.
SELECTED FINANCIAL RATIOS
(Unaudited)
At or For the At or For the
Three Months Ended Year Ended
------------------ ------------
December December December December
31, 31, 31, 31,
1999 1998 1999 1998
------------------- ------------------
Performance Ratios:
Return on average assets 0.91 % 0.21 % 0.84 % 0.76 %
Return on average equity 14.45 3.22 13.79 11.16
Net interest rate spread 3.35 2.75 3.24 2.94
Net interest margin 3.84 3.41 3.73 3.66
Other expense to average
assets 2.70 3.35 2.82 3.22
Average interest-earning
assets to average
interest-bearing
liabilities 112.22 117.14 112.89 118.36
Net interest income
to other expense 128.70 92.91 120.75 102.84
Cash Earnings:
Cash earnings per share:
Basic $0.47 $0.21 $1.80 $1.87
Diluted 0.47 0.21 1.80 1.86
Performance ratios:
Cash return on average
tangible assets 1.07 % 0.44 % 1.01 % 0.94 %
Cash return on average
tangible equity 19.80 9.34 20.45 20.19
Asset Quality Ratios:
Non-performing loans
to total loans 1.18 % 0.89 % 1.18 % 0.89 %
Non-performing assets
to total assets 0.84 0.61 0.84 0.61
Allowance for loan losses
to total loans 1.35 1.16 1.35 1.16
Allowance for loan losses to
non-performing loans 113.98 130.16 113.98 130.16
Capital Ratios:
Average equity to
average assets 6.27 % 6.13 % 6.06 % 6.67 %
Equity to total assets 6.05 5.37 6.05 5.37
Total capital
(to risk-weighted assets) 10.01 10.00 10.01 10.00
Tier 1 capital
(to risk-weighted assets) 8.85 7.38 8.85 7.38
Tier 1 capital
(to average assets) 7.47 5.25 7.47 5.25
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