Wednesday, First Midwest Bancorp, Inc. (FMBI) reported a sharp decline in profit for the second quarter, reflecting higher provision for loan losses and preferred dividends.
The Itasca, Illinois-based company's net income for the second quarter was $2.66 million, compared to $27.00 million a year ago.
Net income applicable to common shares for the quarter declined to $0.06 million or breakeven per share from $26.92 million or $0.55 per share in the previous year. Net income applicable to common shares for the second quarter includes preferred dividends of $2.57 million.
On average, eight analysts polled by Thomson Reuters expected the company to report loss of $0.13 per share for the second quarter. Analysts' estimates typically exclude special items.
Total interest income for the quarter declined to $85.14 million from $101.31 million and total interest expense declined to $24.75 million from $40.99 million last year.
Net interest income for the quarter was $60.39 million, compared to $60.33 million a year ago. Provision for loan losses increased to $36.26 million from $5.78 million.
Total non-interest income for the quarter increased to $31.39 million from $22.42 million and total non-interest expense increased to $59.23 million from $49.94 million last year.
Six analysts had a consensus revenue estimate of $90.52 million for the company.
Total loans at June 30, 2009 increased to $5.32 billion from $5.18 billion at June 30, 2008, while total deposits declined to $5.77 billion from $5.78 billion.
"This performance has enabled us to absorb a significant increase in loan loss provisioning and higher credit remediation costs and, at the same time, strengthen our overall capital position," said Michael Scudder, president and chief executive officer of First Midwest Bancorp.
FMBI is currently trading at $6.87, up 7.51% on the Nasdaq.
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