Correcting and Replacing MB Financial Second Quarter Results, BW0113, IL-MB-FINANCIAL.Business Editors NOTE: The following news release replaces and corrects the previous MB Financial news release, which ran earlier today on Business Wire, BW0113 (IL-MB-FINANCIAL). A table and line item descriptions were missing. CHICAGO--(BUSINESS WIRE)--July 21, 2000 MB Financial, Inc. Reports 2000 Second Quarter Net Income of $2.8 Million Earnings Per Share At $0.40 for the Second Quarter of 2000 MB Financial, Inc. (MBFI MBFI Multiplex Bus Fault Isolator ) (The Company), the holding company for Manufacturers Bank, announced today second quarter net income of $2.8 million which equaled net income for the second quarter of 1999. Basic earnings per share for the second quarter of 2000 was $0.40 compared to $0.39 for the same quarter last year. 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, "Manufacturers Bank has followed a progressive growth plan and this quarter we furthered this plan by relocating one of our banking centers to the corner of LaSalle Lasalle (ləsăl`) or Ville Lasalle (vēl), city (1991 pop. 73,804), S Que., Canada, SW of Montreal on the St. Lawrence River at the head of the Lachine Rapids. It is a suburb of Montreal. and Madison Madison, cities, United States Madison. 1 City (1990 pop. 12,006), seat of Jefferson co., SE Ind., on the Ohio River; settled c.1806, inc. 1838. It is a port of entry and a tobacco marketing center. Streets in downtown Downtown (called a "city centre" in British English) is a term used in North America when referring to a city's core, usually both in a geographical and commercial / community sense. Chicago Chicago, city, United States Chicago (shĭkä`gō, shĭkô`gō), city (1990 pop. 2,783,726), seat of Cook co., NE Ill., on Lake Michigan; inc. 1837. . This move better positioned our Company in the financial district and has allowed us to expand this banking center to include private banking as well as commercial and commercial real estate lending. In addition, we opened a commercial banking center in Oak Brook, Illinois Oak Brook is a suburb of Chicago in DuPage County, in Illinois. The population was 8,702 at the 2000 census. History Oak Brook was incorporated as a Village in 1958, due in large part to the efforts of Paul Butler, a prominent civic leader and landowner whose father had which allows us to better serve our commercial customers in the western suburbs Western Suburbs (Wests) is the premier soccer club in Wellington, New Zealand and current holders of the Chatham Cup. The 2005 season was particularly successful for the club with the First Team claiming the Central League championship and the Reserve side gaining promotion to the . We are very pleased with our operating results for this quarter. Our Company has experienced a long period of continued growth and we expect this momentum to continue. We believe our success is due to our focus on providing high quality products and excellent customer service within our market." RESULTS OF OPERATIONS The Company had net income of $2.8 million for the three months ended June June: see month. 30, 2000 which equaled net income for the three months ended June 30, 1999. Net interest income was $11.0 million for the second quarter of 2000 compared to $10.6 million for the second quarter of 1999. Net interest income remained relatively flat as increases in interest income due to growth in the Company's commercial and lease banking business and increased lending rates from a higher prime rate were offset by increases in interest expense on deposits and borrowings. Net income was $5.5 million for the six months ended June 30, 2000 compared to $4.2 million for the six months ended June 30, 1999. Net interest income increased $3.4 million to $21.9 million for the six months ended June 30, 2000 compared to $18.5 million for the six months ended June 30, 1999. The increase in net interest income was due to growth in the Company's commercial and lease banking business as well as the Avondale Avondale may refer to: In United States geography:
Other income increased $158 thousand to $2.7 million for the quarter ended June 30, 2000 from $2.6 million for the same period in 1999. This increase was the result of income from increase in cash surrender value The amount of money that an insurance company pays the insured upon cancellation of a life insurance policy before death and which is a specific figure assigned to the policy at that particular time, reduced by a charge for administrative expenses. of life insurance and an increase in net lease financing, due to growth in the Company's lease banking business, offset by a decrease in loan service fees from anticipated pay downs and reductions in servicing fee percentages related to home equity loans previously securitized securitized Of, related to, or being debt securities that are secured with assets. For example, mortgage purchase bonds are secured by mortgages that have been purchased with the bond issue's proceeds. and sold by Avondale. For the six months ended June 30, 2000, other income increased $1.4 million to $5.5 million from $4.1 million for the six months ended June 30, 1999. The increase was primarily due to income from increase in cash surrender value of life insurance, an increase in net lease financing, due to growth in the Company's lease banking business, as well as an increase in 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. mainly due to the Avondale merger. Other expense increased $166 thousand to $9.0 million for the second quarter of 2000 from $8.8 million for the second quarter of 1999. The increase was due to increases in 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 expense resulting from the opening of two new commercial banking centers, and other 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. partially offset by a decrease in intangibles Property that is a "right" such as a patent, Copyright, or trademark, or one that is lacking physical existence, such as good will. amortization expense due to the Company utilizing an accelerated intangible amortization method which amortizes a greater amount of purchase premium in early years than in later years. For the six months ended June 30, 2000, other expense increased $2.0 million to $17.9 million from $15.9 million for the six months ended June 30, 1999. The increase was due to increases in salaries and employee benefits, occupancy and equipment expense and other operating expenses primarily due to the Avondale merger. Partially offsetting these increases was a decrease in intangibles amortization expense as the Company utilizes an accelerated intangible amortization method which amortizes a greater amount of purchase premium 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
---------------------------------------
June 30, 2000 June 30, 1999
---------------------------------------
Net interest income $ 11,048 $ 10,560
Average interest earning
assets $ 1,209,894 $ 1,151,328
Net interest margin (1) 3.69% 3.69%
Net interest margin 3.67% 3.68%
Six Months Ended
---------------------------------------
June 30, 2000 June 30, 1999
---------------------------------------
Net interest income $ 21,929 $ 18,509
Average interest earning
assets $ 1,194,254 $ 1,047,470
Net interest margin (1) 3.71% 3.58%
Net interest margin 3.69% 3.56%
(1) Net interest margin is presented on a fully tax equivalent basis
assuming a 35% tax rate for 2000 and a 34% tax rate for 1999.
The Company's net interest income increased $488 thousand to $11.0 million for the quarter ended June 30, 2000 from $10.6 million for the quarter ended June 30, 1999. The increase in net interest income resulted from an increase in interest income of $3.8 million, or 17.7%, partially offset by an increase in interest expense of $3.3 million, or 30.4%. Interest income increased due to a $58.6 million, or 5.1%, increase in average interest earning assets as a result of a $124.2 million increase in average loans offset by a $37.4 million decrease in average investment securities. In addition to growth in the Company's loan portfolio, increased lending rates from a higher prime rate for the second quarter of 2000 also attributed to the increase in interest income. Interest expense rose as a result of a $91.5 million, or 9.0%, increase in average interest bearing liabilities, due to a $103.4 million increase in borrowings mostly from 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. Increased deposit and borrowing rates due to a higher prime rate for the second quarter of 2000 also attributed to the increase in interest expense. The net interest margin was 3.67% for the second quarter of 2000 and 3.68% for the same period in 1999. Increased leverage in the Company's balance sheet, however, had some adverse impact on the net interest margin for the six months ended 2000, due to borrowings used for an investment in a cash surrender value of life insurance, and for the six months ended 1999, due to 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 investment securities. Excluding these transactions from the respective periods, the net interest margin would have increased to 3.84% due to growth and higher interest rates in the loan portfolio for the second quarter of 2000 from 3.79% for the same period in 1999. For the six months ended June 30, 2000, net interest income increased $3.4 million to $21.9 million from $18.5 million for the six months ended June 30, 1999. The increase in net interest income resulted from an increase in interest income of $10.6 million, or 27.6%, partially offset by an increase in interest expense of $7.1 million, or 36.2%. Interest income increased due to a $146.8 million, or 14.0%, increase in average interest earning assets as a result of a $196.5 million increase in average loans offset by a $23.1 million decrease in average investment securities and a $26.6 million decrease in average federal funds sold. Interest expense rose as a result of a $167.3 million, or 18.1%, increase in average interest bearing liabilities due to a $67.3 million increase in time deposits from brokered accounts, and a $88.3 million increase in borrowings primarily from federal funds purchased. Increased deposit and borrowing rates due to a higher prime rate for the six months ended 2000 also attributed to the increase in interest expense. The net interest margin was 3.69% for the six months ended June 30, 2000 and 3.56% for the six months ended June 30, 1999. Increased leverage in the Company's balance sheet, however, had some adverse impact on the net interest margin for the six months ended 2000, due to borrowings used for an investment in a cash surrender value of life insurance, and for the six months ended 1999, due to repurchase agreements used to fund investment securities. Excluding these transactions from the respective periods, the net interest margin would have been 3.80% for the six months ended 2000 and 1999. OTHER INCOME Other income increased $158 thousand to $2.7 million for the quarter ended June 30, 2000 from $2.6 million for the same period in 1999. This increase was the result of $502 thousand in income from increase in cash surrender value of life insurance and a $134 thousand increase in net lease financing, due to growth in the Company's lease banking business, offset by a $458 thousand decrease in loan service fees from anticipated pay downs and reductions in servicing fee percentages related to home equity loans previously securitized and sold by Avondale. For the six months ended June 30, 2000, other income increased $1.4 million to $5.5 million from $4.1 million for the six months ended June 30, 1999. The increase was primarily due to $664 thousand in income from increase in cash surrender value of life insurance, a $200 thousand increase in net lease financing, as well as a $431 thousand increase in other operating income mainly due to the Avondale merger. OTHER EXPENSE Other expense increased $166 thousand to $9.0 million for the second quarter of 2000 from $8.8 million for the second quarter of 1999. The increase was due to a $168 thousand increase in occupancy and equipment expense resulting from the opening of two new commercial banking centers, and a $87 thousand increase in other operating expenses partially offset by a $133 thousand decrease in intangibles amortization expense due to the Company utilizing an accelerated intangible amortization method which amortizes a greater amount of purchase premium in early years than in later years. For the six months ended June 30, 2000, other expense increased $2.0 million to $17.9 million from $15.9 million for the six months ended June 30, 1999. The increase was due to a $1.0 million increase in salaries and employee benefits, a $548 thousand increase in occupancy and equipment expense and a $766 thousand increase in other operating expenses primarily due to the Avondale merger. Partially offsetting these increases was a $267 thousand decrease in intangibles amortization expense as the Company utilizes an accelerated intangible amortization method which amortizes a greater amount of purchase premium in early years than in later years. INCOME TAXES Income tax expense for the three months ended June 30, 2000 was $1.2 million compared to $1.3 million for the same period in 1999. The effective tax rate decreased to 29.0% for the second quarter of 2000 from 32.3% for the same period in 1999 as the Company continued to review and manage its income tax expense. Income tax expense for the six months ended June 30, 2000 was $2.4 million compared to $2.1 million for the same period in 1999. The effective tax rate decreased to 30.4% for the second quarter of 2000 from 33.0% for the same period in 1999 as the Company continued to review and manage its income tax expense. BALANCE SHEET Total assets increased $96.2 million to $1.4 billion at June 30, 2000 compared to $1.3 billion at December December: see month. 31, 1999. The increase was due to a $74.3 million increase in loans, due to growth in commercial and lease banking business, and a $30.7 million increase in cash surrender value of life insurance. Offsetting these increases was a $11.6 million decrease in investment securities. Total liabilities increased $92.2 million to $1.3 billion at June 30, 2000 compared to $1.2 billion at December 31, 1999. The increase was due to a $42.8 million increase in total deposits including a $73.6 million increase in interest bearing brokered deposits and a $8.1 million increase in non-interest bearing deposits offset by a $38.9 million decrease in other interest bearing deposits. Also attributing to the increase in liabilities was a $46.3 million increase in 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 which included a $27.4 million increase in federal funds purchased, a $20.0 million increase in Federal Home Loan Bank advances along with a $2.0 million increase in correspondent bank Correspondent bank Bank that accepts deposits of, and performs services for, another bank (called a respondent bank); in most cases, the two banks are in different cities. lines of credit. Total assets increased $191.9 million to $1.4 billion at June 30, 2000 compared to $1.2 billion at June 30, 1999. The increase was due to a $159.3 million increase in loans, due to growth in commercial and lease banking business, a $30.7 million increase in cash surrender value of life insurance, and a $18.5 million increase in net lease investment. Offsetting these increases was a $13.1 million decrease in investment securities. Total liabilities increased $183.2 million to $1.3 billion at June 30, 2000 compared to $1.1 billion at June 30, 1999. The increase was due to a $40.1 million increase in total deposits resulting from a $73.6 increase in interest bearing brokered deposits and a $11.9 million increase in non-interest bearing deposits offset by a $45.4 million decreased in other interest bearing deposits. Liabilities also increased due to a $144.2 million increase in borrowings resulting from a $78.4 million increase in federal funds purchased, a $40.0 million increase in Federal Home Loan Bank advances, a $27.0 million increase in repurchase agreements used to fund investment securities and a $4.5 million increase in correspondent bank lines of credit. The Bank'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 10.12%, 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 9.03% and Tier 1 capital to average asset ratio was 7.77% at June 30, 2000. 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 "Well-Capitalized" at June 30, 2000. As of June 30, 2000, the Company's book value per share was $11.80 compared to $10.57 at June 30, 1999. ASSET QUALITY The following table presents a summary of non-performing assets as of the dates indicated (dollars in thousands):
------------------------------------------
At June 30, 2000 At June 30, 1999
------------------------------------------
------------------------------------------
Non-accruing loans:
Manufacturers Bank -
core business $ 5,683 $ 3,632
Acquired from Avondale
Federal Savings Bank -
non-core business 4,633 6,953
------------ ---------------
------------ ---------------
Total non-accruing loans 10,316 10,585
------------ ---------------
------------ ---------------
Loans 90 days or more
past due, still accruing
interest:
Manufacturers Bank -
core business 257 108
Acquired from Avondale
Federal Savings Bank -
non-core business 67 -
------------ ---------------
------------ ---------------
Total loans 90 days or
more past due, still
accruing interest 324
------------ ---------------
------------ ---------------
Total non-performing loans 10,640 10,693
------------ ---------------
------------ ---------------
Other real estate owned:
Manufacturers Bank - core
business 204 103
Acquired from Avondale
Federal Savings Bank -
non-core business 418 310
------------ ---------------
------------ ---------------
Total other real estate
owned 622 413
------------ ---------------
------------ ---------------
Total non-performing
assets $ 11,262 $ 11,106
============ ===============
============ ===============
Non-performing loans to
total loans 1.09% 1.31%
Allowance for loan losses
to non-performing loans 118.78% 135.16%
Non-performing assets to
total assets 0.80% 0.92%
A reconciliation of the activity in the Company's allowance for
loan losses follows (dollars in thousands):
Three Months Ended
--------------------------------------
June 30, 2000 June 30, 1999
--------------------------------------
Balance at beginning of
period $ 12,248 $ 15,766
Additions resulting from
the merger - -
Provision for loans losses 840 288
Charge-offs:
Manufacturers Bank -
core business - (850)
Acquired from Avondale
Federal Savings Bank
- non-core business (564) (1,029)
--------------------------------------
Total charge-offs (564) (1,879)
--------------------------------------
--------------------------------------
Recoveries:
Manufacturers Bank -
core business 9 4
Acquired from Avondale
Federal Savings Bank
- non-core business 105 274
--------------------------------------
Total recoveries 114 278
--------------------------------------
Balance at June 30, $ 12,638 $ 14,453
======================================
Total loans at June 30, $ 977,445 $ 818,151
Ratio of allowance for
loan losses to total loans 1.29% 1.77%
Six Months Ended
-------------------------------------
June 30, 2000 June 30, 1999
-------------------------------------
Balance at beginning of
period $ 12,197 $ 6,344
Additions resulting from
the merger - 9,489
Provision for loans losses 1,590 534
Charge-offs:
Manufacturers Bank -
core business (70) (1,026)
Acquired from Avondale
Federal Savings Bank
- non-core business (1,254) (1,263)
------------------------------------
Total charge-offs (1,324) (2,289)
------------------------------------
------------------------------------
Recoveries:
Manufacturers Bank -
core business - 7
Acquired from Avondale
Federal Savings Bank
- non-core business 175 368
----------------------------------
Total recoveries 175 375
----------------------------------
Balance at June 30, $ 12,638 $ 14,453
==================================
Total loans at June 30, $ 977,445 $ 818,151
Ratio of allowance for
loan losses to total loans 1.29% 1.77%
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 February February: see month. 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. At the time of the merger, the estimated losses were fully reserved with the addition to the allowance for loan losses by Avondale. The provision for loan losses increased $552 thousand for the second quarter of 2000 and $1.1 million for the six months ended June 30, 2000 compared to the respective periods for 1999. Increases in the provision for loan losses reflected growth in the Company's loan portfolio. 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 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 core deposit intangibles and goodwill and the related deferred income tax effect (dollars in thousands except earnings per share data):
Three Months Ended
--------------------------------
June 30, 2000 June 30, 1999
---------------------------------
Net income $ 2,834 $ 2,751
Goodwill amortization 203 203
Core deposit intangibles
amortization (net of tax) 182 274
--------------------------------
Cash earnings $ 3,219 $ 3,228
================================
Cash earnings per share:(1)
Basic $ 0.46 $ 0.46
Diluted $ 0.46 $ 0.46
Performance ratios: (2)
Cash return on average
tangible assets 0.96% 1.08%
Cash return on average
tangible equity 17.45% 22.42%
Six Months Ended
------------------------------------------
June 30, 2000 June 30, 1999
------------------------------------------
Net income $ 5,521 $ 4,195
Goodwill amortization 407 407
Core deposit intangibles
amortization (net of tax) 365 547
-------------------------
Cash earnings $ 6,293 $ 5,149
=========================
Cash earnings per share:(1)
Basic $ 0.89 $ 0.84
Diluted $ 0.89 $ 0.84
Performance ratios: (2)
Cash return on average
tangible assets 0.96% 0.95%
Cash return on average
tangible equity 17.39% 21.38%
(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 and six months ended June 30,
2000 and 1999.
This news release may contain forward-looking statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. 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)
June 30, December 31, June 30,
2000 1999 1999
-------------------------------------------------
ASSETS
Cash and due
from banks $ 25,537 $ 29,420 $ 30,953
Other interest
bearing deposits 1,080 1,487 469
Investment securities:
Securities available
for sale 259,740 271,313 262,290
Securities held to maturity
(fair value of $10,701 at
June 30, 1999) - - 10,573
Stock in Federal
Home Loan Bank 7,290 6,290 5,290
Loans 977,445 903,126 818,151
Less: allowance for
loan losses 12,638 12,197 14,453
-------------------------------------------------
Net loans 964,807 890,929 803,698
Lease investments, net 40,891 38,034 22,419
Premises and equipment, net 15,038 15,304 14,855
Cash surrender value of
life insurance 30,664 - -
Interest only securities 13,035 13,821 14,064
Intangibles, net 15,452 16,265 17,500
Other assets 32,051 26,563 31,595
-------------------------------------------------
Total assets $ 1,405,585 $ 1,309,426 $ 1,213,706
=================================================
LIABILITIES AND STOCKHOLDERS' EQUITY
Liabilities
Deposits:
Non-interest
bearing $ 153,203 $ 145,059 $ 141,333
Interest bearing 825,708 791,016 797,520
-------------------------------------------------
Total deposits 978,911 936,075 938,853
Short-term borrowings 290,873 244,569 42,411
Long-term borrowings 32,503 32,698 136,802
Other liabilities 19,914 16,706 20,950
-------------------------------------------------
Total liabilities 1,322,201 1,230,048 1,139,016
-------------------------------------------------
Stockholders' Equity
Common stock, ($0.01 par value;
authorized 20,000,000
shares; issued 7,064,515
shares) 71 71 71
Additional paid-in
capital 50,656 50,656 50,447
Retained earnings 37,707 32,186 26,427
Accumulated other
comprehensive (loss) (5,050) (3,535) (2,255)
-------------------------------------------------
Total stockholders'
equity 83,384 79,378 74,690
-------------------------------------------------
Total liabilities
and stockholders'
equity $ 1,405,585 $ 1,309,426 $ 1,213,706
=================================================
MB FINANCIAL, INC.
CONSOLIDATED STATEMENTS OF INCOME
(Statement Amounts in Thousands except Common Share Data)
(Unaudited)
Three Months Ended June 30, Six Months Ended June 30,
----------------------------------------------------------
2000 1999 2000 1999
----------------------------------------------------------
Interest Income:
Loans $ 20,599 $ 16,140 $ 39,609 $ 28,942
Investment securities:
Taxable 4,487 4,836 8,981 8,475
Nontaxable 78 81 157 160
Federal funds sold - 325 - 618
Other interest
bearing accounts 19 19 42 36
----------------------------------------------------------
Total interest
income 25,183 21,401 48,789 38,231
----------------------------------------------------------
Interest expense:
Deposits 9,166 8,264 17,630 14,568
Short-term
borrowings 4,334 743 7,959 2,250
Long-term borrowings 635 1,834 1,271 2,904
----------------------------------------------------------
Total interest
expense 14,135 10,841 26,860 19,722
----------------------------------------------------------
Net interest income 11,048 10,560 21,929 18,509
Provision for
loan losses 840 288 1,590 534
----------------------------------------------------------
Net interest income
after provision
for loan losses 10,208 10,272 20,339 17,975
----------------------------------------------------------
Other income:
Loan service fees 619 1,077 1,393 1,477
Deposit service fees 840 818 1,672 1,509
Lease financing, net 363 229 666 466
Net gains on sale of
securities available
for sale - 7 - 7
Increase in cash
surrender value of
life insurance 502 - 664 -
Other operating
income 416 451 1,117 686
----------------------------------------------------------
2,740 2,582 5,512 4,145
----------------------------------------------------------
Other expense:
Salaries and
employee benefits 4,494 4,450 9,284 8,267
Occupancy and
equipment expense 1,680 1,512 3,335 2,787
Intangibles amortization
expense 485 618 969 1,236
Other operating
expenses 2,299 2,212 4,331 3,565
----------------------------------------------------------
8,958 8,792 17,919 15,855
----------------------------------------------------------
Income before income
taxes and minority
interest 3,990 4,062 7,932 6,265
Income taxes 1,156 1,311 2,411 2,070
----------------------------------------------------------
Net Income 2,834 2,751 5,521 4,195
==========================================================
Other comprehensive income:
Unrealized securities
(losses), net of
income taxes (899) (1,864) (1,515) (2,594)
Less: reclassification
adjustments for gains
included in net income,
net of income taxes - 5 - 5
----------------------------------------------------------
Other comprehensive
income (899) (1,869) (1,515) (2,599)
----------------------------------------------------------
Comprehensive
income $ 1,935 $ 882 $ 4,006 $ 1,596
==========================================================
Common share data:
Basic earnings per
common share $ 0.40 $ 0.39 $ 0.78 $ 0.69
Diluted earnings per
common share $ 0.40 $ 0.39 $ 0.78 $ 0.69
Weighted average
common shares
outstanding 7,064,515 7,064,515 7,064,515 6,105,417
MB Financial, Inc.
SELECTED FINANCIAL RATIOS
(Unaudited)
At or For the At or For the
Three Months Ended Six Months Ended
------------------- --------------------
June 30, June 30, June 30, June 30,
2000 1999 2000 1999
------- ------- ------- -------
Performance Ratios:
Return on average
assets 0.83 % 0.88 % 0.83 % 0.74 %
Return on average
equity 13.51 14.59 13.35 12.77
Net interest rate
spread 3.26 3.20 3.29 3.06
Net interest margin 3.67 3.68 3.69 3.56
Other expense to
average assets 2.64 2.81 2.69 2.80
Average interest-earning
assets to average
interest-bearing
liabilities 108.69 112.70 109.31 113.20
Net interest income
to other expense 123.33 120.11 122.38 116.74
Cash Earnings:
Cash earnings per share:
Basic $ 0.46 $ 0.46 $ 0.89 $ 0.84
Diluted 0.46 0.46 0.89 0.84
Performance ratios:
Cash return on average
tangible assets 0.96 % 1.08 % 0.96 % 0.95 %
Cash return on average
tangible equity 17.45 22.42 17.39 21.38
Asset Quality Ratios:
Non-performing loans
to total loans 1.09 % 1.31 % 1.09 % 1.31 %
Non-performing assets
to total assets 0.80 0.92 0.80 0.92
Allowance for loan
losses to total loans 1.29 1.77 1.29 1.77
Allowance for loan
losses to
non-performing loans 118.78 135.16 118.78 135.16
Company's Capital Ratios:
Average equity to
average assets 6.17 % 6.01 % 6.08 % 5.80 %
Equity to total assets 5.93 6.15 5.93 6.15
Total capital
(to risk-weighted
assets) 9.59 10.18 9.59 10.18
Tier 1 capital
(to risk-weighted
assets) 8.50 8.90 8.50 8.90
Tier 1 capital
(to average assets) 7.32 6.95 7.32 6.95
Bank's Capital Ratios:
Total capital
(to risk-weighted
assets) 10.12 % 10.21 % 10.12 % 10.21 %
Tier 1 capital
(to risk-weighted
assets) 9.03 8.96 9.03 8.96
Tier 1 capital
(to average assets) 7.77 6.99 7.77 6.99
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