(RTTNews) - First Midwest Bancorp, Inc. (FMBI: News ), the holding company of First Midwest Bank, Wednesday reported a significant decline in profit for the third quarter, primarily reflecting higher loan loss provision and lower net interest income. The company's per share earnings missed the analysts' estimate by a penny.

Net income applicable to shareholders for the third quarter plunged to $0.77 million or $0.02 per share from $24.15 million or $0.50 per share in the previous year.

Net income for the quarter was $3.35 million, compared to $24.19 million last year. Preferred dividends for the quarter amounted to $2.57 million.

On average, six analysts polled by Thomson Reuters expected the company to report earnings of $0.03 per share for the quarter. Analysts' estimates typically exclude special items.

Net interest income for the quarter declined to $60.98 million from $62.76 million last year. Net interest margin for the quarter was 3.66%, compared to 3.63% for third quarter 2008. Provision for loan losses increased to $38.00 million from $13.03 million a year ago.

Total non-interest income rose to $31.09 million from $23.69 million last year. Fee-based revenues were $21.85 million for the quarter, compared to $24.77 million last year. All major fee categories decreased from third quarter 2008, reflecting the impact of reduced consumer spending and lower trust advisory fees. Gains on early extinguishment of debt for the quarter was $13.99 million.
Total non-interest expense increased to $56.64 million from $48.44 million a year ago due to higher loan remediation costs, including costs associated with maintaining foreclosed real estate, and higher FDIC insurance premiums.

Five analysts had a consensus revenue estimate of $86.91 million for the third quarter.

Total loans as of September 30, 2009 were $5.31 billion, an increase of $82.5 million from September 30, 2008. Total deposits were $5.75 billion, compared to $5.66 billion last year.

FMBI is currently trading at $11.15, up 0.17 or 1.55%, on a volume of 320K shares on the Nasdaq.

To receive FREE breaking news email alerts for First Midwest Bancorp and others in your portfolio

by RTT Staff Writer

For comments and feedback: contact editorial@rttnews.com