Earnings Call Excerpt
MB Financial, Inc. (MBFI)
Q2 2008 Earnings Call
July 25, 2008 11:00 am ET
Executives
Mitchell S. Feiger – President & Chief Executive Officer
Jill E. York –Vice President & Chief Financial Officer
Thomas D. Panos – President & Chief Commercial Banking Officer
Thomas Prothero – Senior Credit Officer
Analysts
John Pancari – J.P. Morgan
Brad Milsaps – Sandler O’Neill & Partners, LLC
[Unidentified Private Shareholder]
Kenneth James – Robert W. Baird & Co.
Daniel Cardenas – Howe Barnes Hoefer & Arnett, Inc.
Presentation
Operator
Welcome to the second quarter 2008 MB Financial earnings conference call. (Operator Instructions)
With us today are Mitchell Feiger, President and Chief Executive Officer, Jill York, Chief Financial Officer of MB Financial, and Tom Panos, President of MB Financial Bank and head of commercial banking; also Tom Prothero, Senior Credit Officer.
Before we begin, I need to remind you that during the course of this call, the company may make forward-looking statements about future events and future financial performance. You should not place undue reliance on any forward-looking statements which speak only as of the date made. These statements are subject to numerous factors and could cause actual results to differ materially from those anticipated or projected. For a list of some of these factors, please see MB Financial’s forward-looking statements disclosure and their 2008 second quarter earnings release.
Mitchell S. Feiger
We very much appreciate your interest in our company and the time you’re taking this morning to listen to our comments. Earlier today, we issued our regular quarterly earnings press release. We’re trying to make our press releases as useful to you as possible. We try to anticipate your questions and if you listen carefully, your comments about our prior release so this quarter we’ve included some new disclosures and comments that I’m hoping you’ll find useful. We remain interested in hearing from you about the things you’d like to hear from us so let us know.
This quarter’s report is a relatively clean one. The only significant non-core item is a large net income benefit caused by adjustment of a tax valuation reserve and Jill will give you more detail on that in a minute. I think the 30,000 foot view of operating performance in the second quarter is that loan growth was good, our net interest margin expanded, fee income was good and expense control was good. Of particular note is that we saw strong net interest income growth in the quarter as a result of a good, healthy increase in average earning assets up 18% annualized in the quarter and a 3 basis point increase in our net interest margin. It’s gratifying; we’ve been waiting for the time when our net interest margin would stabilize, allowing our earning asset growth to fall to the bottom line and fortunately that’s what happened in the second quarter. Now that’s a very high-level view of operating performance and Jill will give you more information on that.
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