x |
ANNUAL
REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF
1934
|
|
For
the fiscal year ended December 31,
2009
|
|
OR
|
o |
TRANSITION
REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF
1934
|
|
For
the transition period from ____________ to
____________
|
Maryland
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36-4460265
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|
(State
or other jurisdiction of incorporation or organization)
|
(I.R.S.
Employer Identification No.)
|
|
800
West Madison Street, Chicago, Illinois
|
60607
|
|
(Address
of Principal Executive Offices)
|
(Zip
Code)
|
Title of Each Class
|
Name of Each Exchange on Which
Registered
|
|
Common Stock, par value $0.01 per
share
|
The NASDAQ Stock Market
LLC
|
|
Document
|
Part of Form 10-K
|
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Portions
of the definitive Proxy Statement to
|
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be
used in conjunction with the Registrant’s
|
|||
2010
Annual Meeting of Stockholders.
|
Page
|
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Business....................................................................................................................................................................................................................................................................................................................
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Risk
Factors..............................................................................................................................................................................................................................................................................................................
|
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Unresolved
Staff
Comments..................................................................................................................................................................................................................................................................................
|
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Properties..................................................................................................................................................................................................................................................................................................................
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Legal
Proceedings...................................................................................................................................................................................................................................................................................................
|
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Reserved...................................................................................................................................................................................................................................................................................................................
|
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Market
for Registrant’s Common Equity, Related Stockholder Matters and Issuer
Purchases of Equity
Securities..............................................................................................................................
|
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Selected
Financial
Data...........................................................................................................................................................................................................................................................................................
|
|||
Management’s
Discussion and Analysis of Financial Condition and Results of
Operations....................................................................................................................................................................
|
|||
Quantitative
and Qualitative Disclosures about Market
Risk..........................................................................................................................................................................................................................
|
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Financial
Statements and Supplementary
Data...................................................................................................................................................................................................................................................
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|||
Changes
in and Disagreements with Accountants on Accounting and Financial
Disclosure...................................................................................................................................................................
|
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Controls
and
Procedures........................................................................................................................................................................................................................................................................................
|
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Other
Information....................................................................................................................................................................................................................................................................................................
|
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Directors,
Executive Officers, and Corporate
Governance................................................................................................................................................................................................................................
|
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Executive
Compensation........................................................................................................................................................................................................................................................................................
|
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Security
Ownership of Certain Beneficial Owners, and Management and
Related Stockholder
Matters................................................................................................................................................
|
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Certain
Relationships, Related Transactions and Director
Independence.....................................................................................................................................................................................................
|
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Principal
Accountant Fees and
Services.............................................................................................................................................................................................................................................................
|
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Exhibits
and Financial Statement
Schedules.......................................................................................................................................................................................................................................................
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Signatures.................................................................................................................................................................................................................................................................................................................
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·
|
In
August 2006, we acquired Oak Brook Bank, based in Oak Brook, Illinois, and
its parent First Oak Brook Bancshares, Inc. (FOBB), for $371.0
million. The purchase price was paid through a combination of
cash and our common stock totaling $74.1 million and $296.9 million,
respectively. Oak Brook Bank had assets of approximately $2.6
billion as of the acquisition date.
|
·
|
In
April 2008, we purchased an 80% interest in Cedar Hill Associates, LLC
(Cedar Hill), an asset management firm located in Chicago, Illinois, with
approximately $960 million in assets under
management.
|
·
|
In
February 2009, we assumed approximately $217 million of deposits of
Glenwood, Illinois-based Heritage Community Bank (Heritage), and acquired
loans of approximately $92.5 million in a loss-share transaction
facilitated by the Federal Deposit Insurance Corporation
(FDIC).
|
·
|
In
September 2009, we assumed approximately $135 million of deposits of Oak
Forest, Illinois-based InBank, and acquired loans of approximately $101
million in a transaction facilitated by the
FDIC.
|
·
|
In
September 2009, we assumed approximately $6.5 billion in deposits of
Chicago-based Corus Bank (Corus), and acquired loans of approximately
$26.1 million, in a transaction facilitated by the
FDIC. Deposits assumed in the Corus transaction decreased to
$2.1 billion at December 31, 2009. This decrease was expected
and was a result of us redeeming out-of-market certificates of
deposit assumed in the Corus transaction, the withdrawals of assumed
out-of-market money market accounts following our reduction in interest
rates paid on these deposits, and some in-market deposit run-off of
previously higher rate assumed deposits. We expect that we will
ultimately retain approximately $1.6 billion to $2.0 billion of the
deposits we assumed in the Corus
transaction.
|
·
|
In
December 2009, we assumed $164 million of deposits of Aurora,
Illinois-based Benchmark Bank (Benchmark), and acquired loans of
approximately $76 million in a loss-share transaction facilitated by the
FDIC.
|
·
|
Acquiring
directly or indirectly, ownership or control of any voting shares of
another bank or bank holding company if, after such acquisition, it would
own or control more than 5% of such shares (unless it already owns or
controls the majority of such
shares);
|
·
|
Acquiring
all or substantially all of the assets of another bank or bank holding
company, or
|
·
|
Merging
or consolidating with another bank holding
company.
|
·
|
Real
estate lending standards, which provide guidelines concerning
loan-to-value ratios for various types of real estate
loans;
|
·
|
Risk-based
capital rules, including accounting for interest rate risk, concentration
of credit risk and the risks posed by non-traditional
activities;
|
·
|
Rules
requiring depository institutions to develop and implement internal
procedures to evaluate and control credit and settlement exposure to their
correspondent banks;
|
·
|
Rules
restricting types and amounts of equity investments;
and
|
·
|
Rules
addressing various safety and soundness issues, including operations and
managerial standards, standards for asset quality, earnings and
compensation standards.
|
·
|
loan
delinquencies may increase;
|
·
|
problem
assets and foreclosures may
increase;
|
·
|
demand
for our products and services may
decline;
|
·
|
collateral
for our loans may decline in value, in turn reducing a customer's
borrowing power and reducing the value of collateral securing our loans;
and
|
·
|
the
net worth and liquidity of loan guarantors may decline, impairing their
ability to honor commitments to us.
|
·
|
cash
flow of the borrower and/or the project being
financed;
|
·
|
the
changes and uncertainties as to the future value of the collateral, in the
case of a collateralized loan;
|
·
|
the
credit history of a particular
borrower;
|
·
|
changes
in economic and industry conditions;
and
|
·
|
the
duration of the loan.
|
·
|
our
general reserve, based on our historical default and loss
experience;
|
·
|
our
specific reserve, based on our evaluation of non-performing loans and
their underlying collateral; and
|
·
|
current
macroeconomic factors and model imprecision
factors.
|
·
|
We
may be exposed to potential asset quality issues or unknown or contingent
liabilities of the banks, businesses, assets, and liabilities we
acquire. If these issues or liabilities exceed our estimates, our earnings
and financial condition may be negatively
affected;
|
·
|
Prices
at which acquisitions can be made fluctuate with market conditions. We
have experienced times during which acquisitions could not be made in
specific markets at prices we considered acceptable and expect that we
will experience this condition in the
future;
|
·
|
The
acquisition of other entities generally requires integration of systems,
procedures and personnel of the acquired entity into our company to make
the transaction economically successful. This integration process is
complicated and time consuming and can also be disruptive to the customers
of the acquired business. If the integration process is not conducted
successfully and with minimal effect on the acquired business and its
customers, we may not realize the anticipated economic benefits of
particular acquisitions within the expected time frame, and we may lose
customers or employees of the acquired business. We may also experience
greater than anticipated customer losses even if the integration process
is successful. These risks are present in our recently completed
FDIC-assisted transaction involving our assumption of the deposits and the
acquisition of certain assets of
Benchmark;
|
·
|
The
Company entered into loss sharing agreements with the FDIC as part of the
Heritage and Benchmark transactions. These loss sharing agreements require
that MB Financial Bank follow certain servicing procedures as specified in
the agreement or risk losing FDIC reimbursement of losses on covered loans
and other real estate owned.
|
·
|
To
finance an acquisition, we may borrow funds, thereby increasing our
leverage and diminishing our liquidity, or raise additional capital, which
could dilute the interests of our existing stockholders;
and
|
·
|
We
have completed various acquisitions and opened additional banking offices
in the past few years that enhanced our rate of growth. We may not be able
to continue to sustain our past rate of growth or to grow at all in the
future.
|
Market
Price Range
|
||||||
High
|
Low
|
Dividends
Paid
|
||||
2009
|
||||||
Quarter
ended December 31, 2009
|
$ 21.77
|
$ 16.67
|
$ 0.01
|
|||
Quarter
ended September 30, 2009
|
$ 21.45
|
$ 9.95
|
$ 0.01
|
|||
Quarter
ended June 30, 2009
|
$ 17.44
|
$ 9.25
|
$ 0.01
|
|||
Quarter
ended March 31, 2009
|
$ 28.04
|
$ 9.77
|
$ 0.12
|
|||
2008
|
||||||
Quarter
ended December 31, 2008
|
$ 34.59
|
$ 20.43
|
$ 0.18
|
|||
Quarter
ended September 30, 2008
|
$ 44.29
|
$ 18.76
|
$ 0.18
|
|||
Quarter
ended June 30, 2008
|
$ 32.59
|
$ 22.47
|
$ 0.18
|
|||
Quarter
ended March 31, 2008
|
$ 33.30
|
$ 25.41
|
$ 0.18
|
Total
Number
of
Shares
Purchased
(1)
|
Average
Price
Paid per
Share
|
Number
of Shares
Purchased
as
Part Publicly
Announced
Plans
or
Programs
|
Maximum
Number
of
Shares that
May
Yet Be
Purchased
Under
the
Plans or Programs
|
||||
October
1, 2009 – October 31, 2009
|
68
|
$ 21.73
|
-
|
-
|
|||
November
1, 2009 – November 30, 2009
|
-
|
-
|
-
|
-
|
|||
December
1, 2009 – December 31, 2009
|
-
|
-
|
-
|
-
|
|||
Total
|
68
|
$ 21.73
|
-
|
(1)
|
Represents
shares of stock withheld upon vesting of restricted shares and exercise of
stock options to satisfy tax withholding
obligations.
|
COMPARISON
OF 5-YEAR CUMULATIVE TOTAL RETURN
AMONG
MB FINANCIAL, INC.,
NASDAQ
BANK INDEX, PEER GROUP INDEX AND NASDAQ COMPOSITE
INDEX
|
Fiscal
Year Ending
|
||||||
Index
|
12/31/2004
|
12/31/2005
|
12/31/2006
|
12/31/2007
|
12/31/2008
|
12/31/2009
|
MB
Financial, Inc.
|
100.00
|
85.21
|
92.22
|
77.16
|
71.77
|
51.13
|
NASDAQ
Bank Index
|
100.00
|
95.67
|
106.20
|
82.76
|
62.96
|
51.31
|
Peer
Group Index*
|
100.00
|
101.40
|
106.01
|
78.91
|
48.21
|
28.56
|
NASDAQ
Composite
|
100.00
|
101.37
|
111.03
|
121.92
|
72.49
|
104.31
|
As
of or for the Year Ended December 31,
|
||||||||||
2009
(1)
|
2008
|
2007
|
2006
(2)
|
2005
|
||||||
Statement
of Income Data:
|
||||||||||
Interest
income
|
$
393,538
|
$
413,788
|
$
457,266
|
$
374,371
|
$
274,522
|
|||||
Interest
expense
|
142,986
|
192,900
|
244,960
|
186,192
|
105,689
|
|||||
Net
interest income
|
250,552
|
220,888
|
212,306
|
188,179
|
168,833
|
|||||
Provision
for loan losses
|
231,800
|
125,721
|
19,313
|
10,100
|
8,150
|
|||||
Net
interest income after provision for loan losses
|
18,752
|
95,167
|
192,993
|
178,079
|
160,683
|
|||||
Other
income
|
127,154
|
80,393
|
83,528
|
64,376
|
57,822
|
|||||
Other
expenses
|
223,750
|
183,390
|
191,506
|
152,218
|
131,155
|
|||||
Income
(loss) before income taxes
|
(77,844)
|
(7,830)
|
85,015
|
90,237
|
87,350
|
|||||
Applicable
income tax expense (benefit)
|
(45,265)
|
(23,555)
|
23,670
|
27,238
|
26,641
|
|||||
Income
(loss) from continuing operations
|
(32,579)
|
15,725
|
61,345
|
62,999
|
60,709
|
|||||
Income
from discontinued operations, net of income tax
|
6,453
|
439
|
32,518
|
4,115
|
4,045
|
|||||
Net
income (loss)
|
(26,126)
|
16,164
|
93,863
|
67,114
|
64,754
|
|||||
Dividends
on preferred shares
|
10,298
|
789
|
-
|
-
|
-
|
|||||
Net
income (loss) available to common shareholders
|
$
(36,424)
|
$
15,375
|
$
93,863
|
$
67,114
|
$
64,754
|
|||||
Common
Share Data:
|
||||||||||
Basic
earnings (loss) per common share from continuing
operations
|
$
(0.81)
|
$
0.45
|
$
1.70
|
$
2.02
|
$
2.13
|
|||||
Basic
earnings per common share from discontinued operations
|
0.16
|
0.01
|
0.91
|
0.13
|
0.14
|
|||||
Impact
of preferred stock dividends on basic earnings (loss) per common
share
|
(0.26)
|
(0.02)
|
-
|
-
|
-
|
|||||
Basic
earnings (loss) per common share
|
(0.91)
|
0.44
|
2.61
|
2.15
|
2.27
|
|||||
Diluted
earnings (loss) per common share from continuing
operations
|
(0.81)
|
0.45
|
1.68
|
1.99
|
2.10
|
|||||
Diluted
earnings per common share from discontinued operations
|
0.16
|
0.01
|
0.89
|
0.13
|
0.14
|
|||||
Impact
of preferred stock dividends on diluted earnings (loss) per common
share
|
(0.26)
|
(0.02)
|
-
|
-
|
-
|
|||||
Diluted
earnings (loss) per common share
|
(0.91)
|
0.44
|
2.57
|
2.12
|
2.24
|
|||||
Common
book value per common share
|
20.75
|
25.17
|
24.91
|
23.10
|
17.81
|
|||||
Less:
goodwill and other tangible assets, net of tax benefit, per common
share
|
8.07
|
11.56
|
11.43
|
10.85
|
4.66
|
|||||
Tangible
common book value per common share
|
12.68
|
13.61
|
13.48
|
12.25
|
13.15
|
|||||
Weighted
average common shares outstanding:
|
||||||||||
Basic
|
40,042,655
|
34,706,092
|
35,919,900
|
31,156,887
|
28,480,909
|
|||||
Diluted
|
40,042,655
|
35,061,712
|
36,439,561
|
31,687,220
|
28,895,042
|
|||||
Dividend
payout ratio (3)
|
NM
|
163.64%
|
27.59%
|
30.70%
|
24.63%
|
|||||
Cash
dividends per common share
|
$
0.15
|
$
0.72
|
$
0.72
|
$
0.66
|
$ 0.56
|
(1)
|
In
2009 we completed four FDIC-assisted transactions. See Note 2 in the notes to consolidated financial statements
contained under Item 8. Financial Statements and Supplementary
Data.
|
(2)
|
In
2006 we acquired First Oak Brook Bancshares,
Inc.
|
(3)
|
Not
meaningful, due to our net loss for
2009.
|
As
of or for the Year Ended December 31,
|
||||||||||
(Dollars
in thousands)
|
2009
|
2008
|
2007
|
2006
|
2005
|
|||||
Balance
Sheet Data:
|
||||||||||
Cash
and due from banks
|
$ 136,763
|
$ 79,824
|
$ 141,248
|
$ 142,207
|
$ 82,751
|
|||||
Investment
securities
|
2,913,594
|
1,400,376
|
1,241,385
|
1,628,348
|
1,316,149
|
|||||
Loans,
gross
|
6,524,547
|
6,228,563
|
5,615,627
|
4,971,494
|
3,480,447
|
|||||
Allowance
for loan losses
|
177,072
|
144,001
|
65,103
|
58,983
|
42,290
|
|||||
Assets
held for sale
|
-
|
-
|
-
|
393,608
|
370,103
|
|||||
Total
assets
|
10,865,393
|
8,819,763
|
7,834,703
|
7,978,298
|
5,719,065
|
|||||
Deposits
|
8,683,276
|
6,495,571
|
5,513,783
|
5,580,553
|
3,906,212
|
|||||
Short-term
and long-term borrowings
|
323,917
|
960,085
|
1,186,586
|
934,384
|
771,088
|
|||||
Junior
subordinated notes issued to capital trusts
|
158,677
|
158,824
|
159,016
|
179,162
|
123,526
|
|||||
Liabilities
held for sale
|
-
|
-
|
-
|
361,008
|
341,988
|
|||||
Stockholders’
equity
|
1,251,180
|
1,068,824
|
862,369
|
846,952
|
506,986
|
|||||
Less:
goodwill
|
387,069
|
387,069
|
379,047
|
379,047
|
125,010
|
|||||
Less:
other intangible assets, net of tax benefit
|
24,510
|
16,754
|
16,479
|
18,756
|
8,186
|
|||||
Tangible
equity
|
839,601
|
665,001
|
466,843
|
449,149
|
373,790
|
|||||
Less:
preferred stock
|
193,522
|
193,025
|
-
|
-
|
-
|
|||||
Tangible
common equity
|
646,079
|
471,976
|
466,843
|
449,149
|
373,790
|
|||||
Performance
Ratios:
|
||||||||||
Return
on average assets
|
(0.27%)
|
0.20%
|
1.19%
|
1.02%
|
1.17%
|
|||||
Return
on average common equity
|
(3.91%)
|
1.74%
|
11.03%
|
10.70%
|
13.15%
|
|||||
Net
interest margin (1)
|
2.85%
|
3.03%
|
3.22%
|
3.41%
|
3.63%
|
|||||
Tax
equivalent effect
|
0.12%
|
0.13%
|
0.11%
|
0.11%
|
0.11%
|
|||||
Net
interest margin – fully tax equivalent basis (1)
|
2.97%
|
3.16%
|
3.33%
|
3.52%
|
3.74%
|
|||||
Efficiency
ratio (2)
|
62.44%
|
58.94%
|
60.29%
|
58.92%
|
56.07%
|
|||||
Loans
to deposits
|
75.14%
|
95.89%
|
101.85%
|
89.09%
|
89.10%
|
|||||
Asset
Quality Ratios:
|
||||||||||
Non-performing
loans to total loans (3)
|
4.16%
|
2.34%
|
0.44%
|
0.43%
|
0.58%
|
|||||
Non-performing
assets to total assets (4)
|
2.84%
|
1.71%
|
0.33%
|
0.31%
|
0.36%
|
|||||
Allowance
for loan losses to total loans
|
2.71%
|
2.31%
|
1.16%
|
1.19%
|
1.22%
|
|||||
Allowance
for loan losses to non-performing loans (3)
|
65.26%
|
98.67%
|
266.17%
|
274.75%
|
209.66%
|
|||||
Net
loan charge-offs to average loans
|
3.09%
|
0.79%
|
0.25%
|
0.24%
|
0.24%
|
|||||
Liquidity
and Capital Ratios:
|
||||||||||
Tier
1 capital to risk -weighted assets
|
13.51%
|
12.07%
|
9.75%
|
10.49%
|
11.70%
|
|||||
Total
capital to risk -weighted assets
|
15.45%
|
14.08%
|
11.58%
|
11.80%
|
12.91%
|
|||||
Tier
1 capital to average assets
|
8.71%
|
9.85%
|
8.18%
|
8.39%
|
9.08%
|
|||||
Average
equity to average assets
|
11.51%
|
10.90%
|
10.76%
|
9.50%
|
8.93%
|
|||||
Tangible
equity to assets (5)
|
8.03%
|
7.90%
|
6.28%
|
5.93%
|
6.69%
|
|||||
Tangible
common equity to assets (6)
|
6.18%
|
5.61%
|
6.28%
|
5.93%
|
6.69%
|
|||||
Tangible common equity to risk-weighted assets (7) |
8.83%
|
7.10% | 7.40% | 7.47% | 8.70% | |||||
Other:
|
||||||||||
Banking
facilities
|
87
|
72
|
73
|
70
|
45
|
|||||
Full
time equivalent employees (8)
|
1,638
|
1,342
|
1,282
|
1,380
|
1,123
|
(1)
|
Net
interest margin represents net interest income from continuing operations
as a percentage of average interest earning
assets.
|
(2)
|
Equals
total other expense excluding FDIC special assessment, contributions to
the MB Financial Charitable Foundation, executive separation agreement
expense, unamortized issuance costs related to redemption of trust
preferred securities, and impairment charges divided by the sum of net
interest income on a fully tax equivalent basis and total other income
less net gains (losses) on securities available for sale, net gains
(losses) on sale of other assets, and acquisition related
gains.
|
(3)
|
Non-performing
loans include loans accounted for on a non-accrual basis, accruing loans
contractually past due 90 days or more as to interest or principal and
loans the terms of which have been renegotiated to provide reduction or
deferral of interest or principal because of a deterioration in the
financial position of the borrower. Non-performing loans
excludes purchased credit-impaired loans that were acquired as part of the
Heritage, InBank, Corus, and Benchmark FDIC-assisted
transactions. See Note 6 in the notes to
consolidated financial statements contained under Item 8. Financial
Statements and Supplementary Data.
|
(4)
|
Non-performing
assets include non-performing loans, other real estate owned and other
repossessed assets. Non-performing assets exclude other real
estate owned that is related to the Heritage, InBank, and Benchmark
FDIC-assisted transactions. See Note 2 in
the notes to consolidated financial statements contained under Item 8.
Financial Statements and Supplementary
Data.
|
(5)
|
Equals
total ending shareholders’ equity less goodwill and other intangibles, net
of tax benefit, divided by total assets less goodwill and other
intangibles, net of tax benefit.
|
(6)
|
Equals
total ending shareholders’ equity less preferred stock, goodwill and other
intangibles, net of tax benefit, divided by total assets less goodwill and
other intangibles, net of tax
benefit.
|
(7)
|
Equals
total ending shareholders’ equity less preferred stock, goodwill and other
intangibles, net of tax benefit, divided by risk-weighted
assets.
|
(8)
|
Includes Union Bank employees for
2006 and 2005 and employees of our merchant card processing business for
all years shown.
|
2009
|
2008
|
2007
|
2006
|
2005
|
|||
Non-interest
expense
|
$ 223,750
|
$ 183,390
|
$ 191,506
|
$ 152,218
|
$ 131,155
|
||
Less
FDIC special assessment
|
3,850
|
-
|
-
|
-
|
-
|
||
Less
contributions to MB Financial Charitable Foundation
|
-
|
-
|
4,500
|
-
|
-
|
||
Less
executive separation agreement expense
|
-
|
-
|
5,908
|
-
|
-
|
||
Less
unamortized issuance costs related to redemption
|
|||||||
of
trust preferred securities
|
-
|
-
|
1,914
|
-
|
-
|
||
Less
impairment charges
|
4,000
|
-
|
-
|
-
|
-
|
||
Non-interest
expense - as adjusted
|
$ 215,900
|
$ 183,390
|
$ 179,184
|
$ 152,218
|
$ 131,155
|
||
Net
interest income
|
$ 250,552
|
$ 220,888
|
$ 212,306
|
$ 188,179
|
$ 168,833
|
||
Tax
equivalent adjustment
|
10,625
|
9,890
|
7,728
|
6,191
|
5,185
|
||
Net
interest income on a fully tax equivalent basis
|
261,177
|
230,778
|
220,034
|
194,370
|
174,018
|
||
Plus
other income
|
127,154
|
80,393
|
83,528
|
64,376
|
57,822
|
||
Less
net gains (losses) on securities available for sale
|
14,029
|
1,130
|
(3,744)
|
(445)
|
(2,077)
|
||
Less
net gains (losses) on sale of other assets
|
(13)
|
(1,104)
|
10,097
|
860
|
20
|
||
Less
acquisition related gains
|
28,547
|
-
|
-
|
-
|
-
|
||
Net
interest income plus non-interest income -
|
|||||||
as
adjusted
|
$ 345,768
|
$ 311,145
|
$ 297,209
|
$ 258,331
|
$ 233,897
|
||
Efficiency
ratio
|
62.44%
|
58.94%
|
60.29%
|
58.92%
|
56.07%
|
||
Efficiency
ratio (without adjustments)
|
59.24%
|
60.87%
|
64.73%
|
60.27%
|
57.87%
|
Three
Months Ended 2009
|
Three
Months Ended 2008
|
|||||||
Statement
of Income Data:
|
December
|
September
|
June
|
March
|
December
|
September
|
June
|
March
|
Interest
income
|
$ 110,250
|
$
93,609
|
$ 93,864
|
$
95,815
|
$
101,535
|
$
103,061
|
$ 101,390
|
$
107,802
|
Interest
expense
|
36,049
|
32,675
|
34,475
|
39,787
|
46,789
|
46,455
|
45,317
|
54,339
|
Net
interest income
|
74,201
|
60,934
|
59,389
|
56,028
|
54,746
|
56,606
|
56,073
|
53,463
|
Provision
for loan losses
|
70,000
|
45,000
|
27,100
|
89,700
|
72,581
|
18,400
|
12,200
|
22,540
|
Net
interest income (loss) after provision for loan losses
|
4,201
|
15,934
|
32,289
|
(33,672)
|
(17,835)
|
38,206
|
43,873
|
30,923
|
Other
income
|
42,927
|
30,900
|
24,925
|
28,402
|
17,603
|
21,880
|
20,916
|
19,993
|
Other
expenses
|
61,072
|
59,158
|
54,508
|
49,012
|
44,011
|
47,773
|
47,665
|
43,940
|
Income
(loss) before income taxes
|
(13,944)
|
(12,324)
|
2,706
|
(54,282)
|
(44,243)
|
12,313
|
17,124
|
6,976
|
Income
tax expense (benefit)
|
(4,164)
|
(13,596)
|
(1,480)
|
(26,025)
|
(19,374)
|
(743)
|
(4,759)
|
1,321
|
Income
(loss) from continuing operations
|
(9,780)
|
1,272
|
4,186
|
(28,257)
|
(24,869)
|
13,056
|
21,883
|
5,655
|
Income
from discontinued operations, net of income tax
|
-
|
6,172
|
129
|
152
|
48
|
98
|
124
|
169
|
Net
income (loss)
|
$ (9,780)
|
$
7,444
|
$ 4,315
|
$
(28,105)
|
$
(24,821)
|
$
13,154
|
$ 22,007
|
$
5,824
|
Dividends
on preferred shares
|
2,591
|
2,589
|
2,587
|
2,531
|
789
|
-
|
-
|
-
|
Net
income (loss) available to common shareholders
|
$ (12,371)
|
$
4,855
|
$ 1,728
|
$
(30,636)
|
$
(25,610)
|
$
13,154
|
$ 22,007
|
$ 5,824
|
Net
Interest Margin
|
2.74%
|
2.74%
|
3.05%
|
2.88%
|
2.86%
|
3.04%
|
3.11%
|
3.10%
|
Tax
equivalent effect
|
0.12%
|
0.11%
|
0.13%
|
0.13%
|
0.14%
|
0.14%
|
0.14%
|
0.12%
|
Net
interest margin on a fully tax equivalent basis
|
2.86%
|
2.85%
|
3.18%
|
3.01%
|
3.00%
|
3.18%
|
3.25%
|
3.22%
|
Common
Share Data :
|
||||||||
Basic
earnings (loss) per common share from continuing
operations
|
$ (0.19)
|
$ 0.03
|
$ 0.12
|
$ (0.81)
|
$ (0.72)
|
$ 0.38
|
$ 0.63
|
$ 0.16
|
Basic
earnings per common share from discontinued operations
|
$ -
|
$ 0.16
|
$ 0.00
|
$ 0.00
|
$ 0.00
|
$ 0.00
|
$ 0.00
|
$ 0.00
|
Impact
of preferred stock dividends on basic earnings (loss) per common
share
|
$ (0.05)
|
$ (0.07)
|
$ (0.07)
|
$ (0.07)
|
$ (0.02)
|
$ 0.00
|
$ -
|
$ -
|
Basis
earnings (loss) per common share
|
$ (0.25)
|
$ 0.12
|
$ 0.05
|
$ (0.88)
|
$ (0.74)
|
$ 0.38
|
$ 0.63
|
$ 0.17
|
Diluted
earnings (loss) per common share from continuing
operations
|
$ (0.19)
|
$ 0.03
|
$ 0.12
|
$ (0.81)
|
$ (0.72)
|
$ 0.38
|
$ 0.62
|
$ 0.16
|
Diluted
earnings per common share from discontinued operations
|
$ -
|
$ 0.16
|
$ 0.00
|
$ 0.00
|
$ 0.00
|
$ 0.00
|
$ 0.00
|
$ 0.00
|
Impact
of preferred stock dividends on diluted earnings (loss) per common
share
|
$ (0.05)
|
$ (0.07)
|
$ (0.07)
|
$ (0.07)
|
$ (0.02)
|
$ 0.00
|
$ -
|
$ -
|
Diluted
earnings (loss) per common share
|
$ (0.25)
|
$ 0.12
|
$ 0.05
|
$ (0.88)
|
$ (0.74)
|
$ 0.38
|
$ 0.63
|
$ 0.17
|
Weighted
average common shares outstanding
|
50,279,008
|
39,104,894
|
35,726,879
|
34,914,012
|
34,777,651
|
34,732,633
|
34,692,571
|
34,620,435
|
Diluted
weighted average common shares outstanding
|
50,279,008
|
39,299,168
|
35,876,483
|
34,914,012
|
35,164,585
|
35,074,297
|
35,047,596
|
34,994,731
|
Year
Ended December 31,
|
|||||||||||
2009
|
2008
|
2007
|
|||||||||
Average
|
Yield/
|
Average
|
Yield/
|
Average
|
Yield/
|
||||||
Balance
|
Interest
|
Rate
|
Balance
|
Interest
|
Rate
|
Balance
|
Interest
|
Rate
|
|||
Interest
Earning Assets:
|
|||||||||||
Loans
(1) (2) (3)
|
$ 6,339,229
|
$ 326,293
|
5.15%
|
$ 5,892,845
|
$ 354,210
|
6.01%
|
$ 5,198,249
|
$ 392,526
|
7.55%
|
||
Loans
exempt from federal income taxes (4)
|
82,019
|
7,658
|
9.21
|
59,746
|
4,408
|
7.26
|
9,338
|
754
|
7.96
|
||
Taxable
investment securities
|
1,444,552
|
45,777
|
3.17
|
868,700
|
40,468
|
4.66
|
1,037,129
|
49,675
|
4.79
|
||
Investment
securities exempt from federal income taxes (4)
|
391,071
|
22,698
|
5.72
|
414,234
|
23,849
|
5.66
|
374,025
|
21,326
|
5.62
|
||
Federal
funds sold
|
-
|
-
|
-
|
12,849
|
276
|
2.11
|
8,853
|
449
|
5.00
|
||
Other
interest bearing deposits
|
545,314
|
1,737
|
0.32
|
52,497
|
467
|
0.89
|
7,193
|
264
|
3.67
|
||
Total
interest earning assets
|
8,802,185
|
$ 404,163
|
4.59
|
7,300,871
|
$ 423,678
|
5.80
|
6,634,787
|
$ 464,994
|
7.01
|
||
Assets
available for sale
|
-
|
-
|
341,734
|
||||||||
Non-interest
earning assets
|
975,103
|
939,473
|
934,089
|
||||||||
Total
assets
|
$ 9,777,288
|
$ 8,240,344
|
$ 7,910,610
|
||||||||
Interest
Bearing Liabilities:
|
|||||||||||
Deposits:
|
|||||||||||
NOW
and money market deposit
|
$ 2,098,530
|
$ 17,773
|
0.85%
|
$ 1,292,407
|
$ 23,176
|
1.79%
|
$ 1,213,001
|
$ 37,568
|
3.10%
|
||
Savings
deposit
|
473,477
|
1,717
|
0.36
|
383,534
|
1,239
|
0.32
|
428,087
|
3,051
|
0.71
|
||
Time
deposits
|
3,725,326
|
102,124
|
2.74
|
3,426,332
|
126,955
|
3.71
|
2,986,964
|
145,030
|
4.86
|
||
Short-term
borrowings
|
449,548
|
5,166
|
1.15
|
681,074
|
17,590
|
2.58
|
812,681
|
37,354
|
4.60
|
||
Long-term
borrowings and junior subordinated notes
|
512,267
|
16,206
|
3.12
|
581,026
|
23,940
|
4.05
|
364,441
|
21,957
|
5.94
|
||
Total
interest bearing liabilities
|
7,259,148
|
$ 142,986
|
1.97
|
6,364,373
|
$ 192,900
|
3.03
|
5,805,174
|
$ 244,960
|
4.22
|
||
Non-interest
bearing deposits
|
1,307,021
|
891,072
|
860,557
|
||||||||
Liabilities
held for sale
|
-
|
-
|
313,414
|
||||||||
Other
non-interest bearing liabilities
|
85,890
|
85,368
|
80,141
|
||||||||
Stockholders’
equity
|
1,125,229
|
899,531
|
851,324
|
||||||||
Total
liabilities and stockholders’ equity
|
$ 9,777,288
|
$ 8,240,344
|
$ 7,910,610
|
||||||||
Net
interest income/interest rate spread (5)
|
$ 261,177
|
2.62%
|
$ 230,778
|
2.77%
|
$ 220,034
|
2.79%
|
|||||
Taxable
equivalent adjustment
|
(10,625)
|
(9,890)
|
7,728
|
||||||||
Net
interest income, as reported
|
$ 250,552
|
$ 220,888
|
$ 212,306
|
||||||||
Net
interest margin (6)
|
2.85%
|
3.03%
|
3.20%
|
||||||||
Tax
equivalent effect
|
0.12%
|
0.13%
|
0.12%
|
||||||||
Net
interest margin on a fully tax equivalent basis (6)
|
2.97%
|
3.16%
|
3.32%
|
(1)
|
Non-accrual
loans are included in average
loans.
|
(2)
|
Interest
income includes amortization of deferred loan origination fees of $5.1
million, $7.0 million and $6.7 million for the years ended December 31,
2009, 2008 and 2007, respectively.
|
(3)
|
Loans
held for sale are included in the average loan balance
listed. Related interest income is included in loan interest
income.
|
(4)
|
Non-taxable
loan and investment income is presented on a fully tax equivalent basis
assuming a 35% tax rate.
|
(5)
|
Interest
rate spread represents the difference between the average yield on
interest earning assets and the average cost of interest bearing
liabilities and is presented on a fully tax equivalent
basis.
|
(6)
|
Net
interest margin represents net interest income as a percentage of average
interest earning assets.
|
Year
Ended December 31,
|
||||||||||||
2009
Compared to 2008
|
2008
Compared to 2007
|
|||||||||||
Change
|
Change
|
Change
|
Change
|
|||||||||
Due
to
|
Due
to
|
Total
|
Due
to
|
Due
to
|
Total
|
|||||||
Volume
|
Rate
|
Change
|
Volume
|
Rate
|
Change
|
|||||||
Interest
Earning Assets:
|
||||||||||||
Loans
|
$ 27,016
|
$ (54,933)
|
$ (27,917)
|
$ 47,821
|
$ (86,137)
|
$ (38,316)
|
||||||
Loans
exempt from federal income taxes (1)
|
1,899
|
1,351
|
3,250
|
3,725
|
(71)
|
3,654
|
||||||
Taxable
investment securities
|
21,039
|
(15,730)
|
5,309
|
(7,878)
|
(1,329)
|
(9,207)
|
||||||
Investment
securities exempt from federal income taxes (1)
|
(1,343)
|
192
|
(1,151)
|
2,313
|
210
|
2,523
|
||||||
Federal
funds sold
|
(138)
|
(138)
|
(276)
|
152
|
(325)
|
(173)
|
||||||
Other
interest bearing deposits
|
1,750
|
(480)
|
1,270
|
538
|
(335)
|
203
|
||||||
Total
increase (decrease) in interest income
|
50,223
|
(69,738)
|
(19,515)
|
46,671
|
(87,987)
|
(41,316)
|
||||||
Interest
Bearing Liabilities:
|
||||||||||||
Deposits
|
||||||||||||
NOW
and money market deposit accounts
|
10,323
|
(15,726)
|
(5,403)
|
2,320
|
(16,712)
|
(14,392)
|
||||||
Savings
deposits
|
314
|
164
|
478
|
(290)
|
(1,522)
|
(1,812)
|
||||||
Time
deposits
|
10,354
|
(35,185)
|
(24,831)
|
19,397
|
(37,472)
|
(18,075)
|
||||||
Short-term
borrowings
|
(4,719)
|
(7,705)
|
(12,424)
|
(5,334)
|
(14,430)
|
(19,764)
|
||||||
Long-term
borrowings and junior subordinated notes
|
(2,611)
|
(5,123)
|
(7,734)
|
10,356
|
(8,373)
|
1,983
|
||||||
Total
(decrease) increase in interest expense
|
13,661
|
(63,575)
|
(49,914)
|
26,449
|
(78,509)
|
(52,060)
|
||||||
Total
increase (decrease) in net interest income
|
$ 36,562
|
$ (6,163)
|
$
30,399
|
$ 20,222
|
$ (9,478)
|
$ 10,744
|
(1)
|
Non-taxable
loan and investment income is presented on a fully tax equivalent basis
assuming a 35% rate.
|
Year
Ended
|
|||||||
December
31,
|
December
31,
|
Increase/
|
Percentage
|
||||
2009
|
2008
|
(Decrease)
|
Change
|
||||
Other
income (in thousands):
|
|||||||
Loan
service fees
|
$
6,913
|
$
9,180
|
$
(2,267)
|
(25%)
|
|||
Deposit
service fees
|
30,600
|
28,225
|
2,375
|
8%
|
|||
Lease
financing, net
|
18,528
|
16,973
|
1,555
|
9%
|
|||
Brokerage
fees
|
4,606
|
4,317
|
289
|
7%
|
|||
Trust
and asset management fees
|
12,593
|
11,869
|
724
|
6%
|
|||
Net
gain on sale of investment securities
|
14,029
|
1,130
|
12,899
|
1,142%
|
|||
Increase
in cash surrender value of life insurance
|
2,459
|
5,299
|
(2,840)
|
(54%)
|
|||
Net
loss on sale of other assets
|
(13)
|
(1,104)
|
1,091
|
(99%)
|
|||
Acquisition
related gains
|
28,547
|
-
|
28,547
|
N/A
|
|||
Other
operating income
|
8,892
|
4,504
|
4,388
|
97%
|
|||
Total
other income
|
$
127,154
|
$
80,393
|
$
46,761
|
58%
|
Year
Ended
|
|||||||
December
31,
|
December
31,
|
Increase/
|
Percentage
|
||||
2008
|
2007
|
(Decrease)
|
Change
|
||||
Other
income (in thousands):
|
|||||||
Loan
service fees
|
$
9,180
|
$
6,258
|
$
2,922
|
47%
|
|||
Deposit
service fees
|
28,225
|
23,918
|
4,307
|
18%
|
|||
Lease
financing, net
|
16,973
|
15,847
|
1,126
|
7%
|
|||
Brokerage
fees
|
4,317
|
9,581
|
(5,264)
|
(55%)
|
|||
Trust
and asset management fees
|
11,869
|
10,447
|
1,422
|
14%
|
|||
Net
gain (loss) on sale of investment securities
|
1,130
|
(3,744)
|
4,874
|
(130%)
|
|||
Increase
in cash surrender value of life insurance
|
5,299
|
5,003
|
296
|
6%
|
|||
Net
(loss) gain on sale of other assets
|
(1,104)
|
10,097
|
(11,201)
|
(111%)
|
|||
Acquisition
related gains
|
-
|
-
|
-
|
N/A
|
|||
Other
operating income
|
4,504
|
6,121
|
(1,617)
|
(26%)
|
|||
Total
other income
|
$
80,393
|
$
83,528
|
$
(3,135)
|
(4%)
|
Year
Ended
|
|||||||
December
31,
|
December
31,
|
Increase/
|
Percentage
|
||||
2009
|
2008
|
(Decrease)
|
Change
|
||||
Other
expense (in thousands):
|
|||||||
Salaries
and employee benefits
|
$ 120,654
|
$ 108,835
|
$ 11,819
|
11%
|
|||
Occupancy
and equipment expense
|
31,521
|
28,872
|
2,649
|
9%
|
|||
Computer
services expense
|
10,011
|
7,392
|
2,619
|
35%
|
|||
Advertising
and marketing expense
|
4,185
|
5,089
|
(904)
|
(18%)
|
|||
Professional
and legal expense
|
4,680
|
3,110
|
1,570
|
50%
|
|||
Brokerage
fee expense
|
1,999
|
1,929
|
70
|
4%
|
|||
Telecommunication
expense
|
3,433
|
2,818
|
615
|
22%
|
|||
Other
intangibles amortization expense
|
4,491
|
3,554
|
937
|
26%
|
|||
FDIC
insurance premiums
|
16,762
|
1,877
|
14,885
|
793%
|
|||
Charitable
contributions
|
73
|
30
|
43
|
143%
|
|||
Impairment
charges
|
4,000
|
-
|
4,000
|
N/A
|
|||
Other
operating expenses
|
21,941
|
19,884
|
2,057
|
10%
|
|||
Total
other expense
|
$ 223,750
|
$ 183,390
|
$ 40,360
|
22%
|
Year
Ended
|
|||||||
December
31,
|
December
31,
|
Increase/
|
Percentage
|
||||
2008
|
2007
|
(Decrease)
|
Change
|
||||
Other
expense (in thousands):
|
|||||||
Salaries
and employee benefits
|
$
108,835
|
$
110,809
|
$ (1,974)
|
(2%)
|
|||
Occupancy
and equipment expense
|
28,872
|
28,878
|
(6)
|
(0%)
|
|||
Computer
services expense
|
7,392
|
6,699
|
693
|
10%
|
|||
Advertising
and marketing expense
|
5,089
|
4,859
|
230
|
5%
|
|||
Professional
and legal expense
|
3,110
|
4,543
|
(1,433)
|
(32%)
|
|||
Brokerage
fee expense
|
1,929
|
4,802
|
(2,873)
|
(60%)
|
|||
Telecommunication
expense
|
2,818
|
2,805
|
13
|
0%
|
|||
Other
intangibles amortization expense
|
3,554
|
3,504
|
50
|
1%
|
|||
FDIC
insurance premiums
|
1,877
|
664
|
1,213
|
183%
|
|||
Charitable
contributions
|
30
|
4,686
|
(4,656)
|
(99%)
|
|||
Other
operating expenses
|
19,884
|
19,257
|
627
|
3%
|
|||
Total
other expense
|
$
183,390
|
$ 191,506
|
$ (8,116)
|
(4%)
|
Year
Ended December 31,
|
||||||||||||
2009
|
2008
|
2007
|
||||||||||
Amortized
|
Fair
|
Amortized
|
Fair
|
Amortized
|
Fair
|
|||||||
Cost
|
Value
|
Cost
|
Value
|
Cost
|
Value
|
|||||||
Government
sponsored agencies and enterprises
|
$ 69,120
|
$
70,239
|
$
171,385
|
$ 179,373
|
$ 305,768
|
$
310,538
|
||||||
States
and political subdivisions
|
366,845
|
380,234
|
417,608
|
427,999
|
407,973
|
412,302
|
||||||
Residential
mortgage-backed securities
|
2,382,495
|
2,377,051
|
682,679
|
690,285
|
435,743
|
438,056
|
||||||
Corporate
bonds
|
11,400
|
11,395
|
34,546
|
34,565
|
12,797
|
13,057
|
||||||
Equity
securities
|
4,280
|
4,314
|
3,595
|
3,606
|
3,446
|
3,460
|
||||||
Debt
securities issued by foreign governments
|
-
|
-
|
301
|
302
|
299
|
301
|
||||||
Total
|
$ 2,834,140
|
$ 2,843,233
|
$ 1,310,114
|
$ 1,336,130
|
$ 1,166,026
|
$ 1,177,714
|
Due
after One
|
Due
after Five
|
|||||||||||
Due
in One
|
Year
through
|
Years
through
|
Due
after
|
|||||||||
Year
or Less
|
Five
Years
|
Ten
Years
|
Ten
Years
|
|||||||||
Balance
|
Weighted
Average Yield
|
Balance
|
Weighted
Average Yield
|
Balance
|
Weighted
Average Yield
|
Balance
|
Weighted
Average Yield
|
|||||
Government
sponsored agencies and enterprises
|
$ 38,131
|
2.16%
|
$ 14,726
|
3.31%
|
$
15,318
|
2.13%
|
$ 2,064
|
2.23%
|
||||
States
and political subdivision (1)
|
9,890
|
5.56%
|
70,243
|
5.51%
|
254,849
|
5.84%
|
45,252
|
6.48%
|
||||
Residential
mortgage-backed securities (2)
|
12
|
7.22%
|
8,487
|
4.61%
|
147,162
|
4.16%
|
2,221,390
|
4.90%
|
||||
Corporate
bonds
|
5,032
|
0.15%
|
-
|
-
|
-
|
-
|
6,363
|
9.25%
|
||||
Equity
securities
|
-
|
-
|
-
|
-
|
-
|
-
|
4,314
|
4.07%
|
||||
Total
|
$ 53,065
|
2.71%
|
$ 93,456
|
5.08%
|
$ 417,329
|
5.11%
|
$ 2,279,383
|
5.08%
|
(1)
|
Yield
is reflected on a fully tax equivalent basis utilizing a 35% tax
rate.
|
(2)
|
These
securities are presented based upon contractual
maturities.
|
At
December 31,
|
||||||||||||
2009
|
2008
|
2007
|
2006
|
2005
|
||||||||
%
of
|
%
of
|
%
of
|
%
of
|
%
of
|
||||||||
Amount
|
Total
|
Amount
|
Total
|
Amount
|
Total
|
Amount
|
Total
|
Amount
|
Total
|
|||
Commercial
related credits:
|
||||||||||||
Commercial
loans
|
$ 1,387,476
|
21%
|
$ 1,522,380
|
24%
|
$ 1,323,455
|
24%
|
$ 1,020,707
|
21%
|
$ 767,392
|
22%
|
||
Commercial
loans collateralized by
|
||||||||||||
assignment
of lease payments (lease loans)
|
953,452
|
15%
|
649,918
|
10%
|
553,138
|
10%
|
392,063
|
8%
|
271,945
|
8%
|
||
Commercial
real estate
|
2,472,520
|
38%
|
2,353,261
|
38%
|
1,974,370
|
36%
|
1,804,103
|
36%
|
1,465,875
|
42%
|
||
Construction
real estate
|
594,482
|
9%
|
757,900
|
13%
|
845,158
|
14%
|
851,896
|
17%
|
511,379
|
15%
|
||
Total
commercial related credits
|
5,407,930
|
83%
|
5,283,459
|
85%
|
4,696,121
|
84%
|
4,068,769
|
82%
|
3,016,591
|
87%
|
||
Other
loans:
|
||||||||||||
Residential
real estate
|
291,022
|
4%
|
295,336
|
5%
|
354,874
|
6%
|
360,183
|
7%
|
224,006
|
6%
|
||
Indirect
vehicle
|
180,267
|
3%
|
189,227
|
3%
|
146,311
|
3%
|
110,573
|
2%
|
56
|
0%
|
||
Home
equity
|
405,439
|
6%
|
401,029
|
6%
|
365,589
|
6%
|
381,612
|
8%
|
222,419
|
6%
|
||
Consumer
loans
|
66,293
|
1%
|
59,512
|
1%
|
52,732
|
1%
|
50,357
|
1%
|
17,375
|
1%
|
||
Total
other loans
|
943,021
|
14%
|
945,104
|
15%
|
919,506
|
16%
|
902,725
|
18%
|
463,856
|
13%
|
||
Gross
loans excluding covered loans
|
6,350,951
|
97%
|
6,228,563
|
100%
|
5,615,627
|
100%
|
4,971,494
|
100%
|
3,480,447
|
100%
|
||
Covered
loans (1)
|
173,596
|
3%
|
-
|
0%
|
-
|
0%
|
-
|
0%
|
-
|
0%
|
||
Gross
loans (2)
|
6,524,547
|
100%
|
6,228,563
|
100%
|
5,615,627
|
100%
|
4,971,494
|
100%
|
3,480,447
|
100%
|
||
Allowance
for loan losses
|
(177,072)
|
(144,001)
|
(65,103)
|
(58,983)
|
(42,290)
|
|||||||
Net
loans
|
$ 6,347,475
|
$ 6,084,562
|
$ 5,550,524
|
$ 4,912,511
|
$ 3,438,157
|
(1)
|
Loans
that MB Financial Bank will share losses with the FDIC are referred to as
“covered loans”, and are net of a $63.4 million
discount.
|
(2)
|
Gross
loan balances at December 31, 2009, 2008, 2007, 2006, and 2005 are net of
unearned income, including net deferred loans fees of $4.6 million, $4.5
million, $3.7 million, $3.0 million, and $3.2 million,
respectively.
|
Due
in One Year
|
Due
after One Year
|
Due
after
|
||||||||||||||
Or
Less
|
Through
Five Years
|
Five
Years
|
||||||||||||||
Non-Performing
|
Fixed
|
Floating
|
Fixed
|
Floating
|
Fixed
|
Floating
|
||||||||||
Loans
(1)
|
Rate
(2)
|
Rate
(2)
|
Rate
(2)
|
Rate
(2)
|
Rate
(2)
|
Rate
(2)
|
Total
|
|||||||||
Commercial
loans
|
$
10,362
|
$
59,350
|
$
649,616
|
$
153,729
|
$
443,638
|
$
32,011
|
$
38,770
|
$
1,387,476
|
||||||||
Commercial
loans collateralized by
|
||||||||||||||||
assignment
of lease payments
|
2,089
|
51,863
|
-
|
860,441
|
7,654
|
31,405
|
-
|
953,452
|
||||||||
Commercial
real estate
|
58,660
|
297,581
|
443,314
|
1,046,356
|
400,741
|
139,131
|
86,737
|
2,472,520
|
||||||||
Construction
real estate
|
180,991
|
24,623
|
232,047
|
12,595
|
95,643
|
48,583
|
-
|
594,482
|
||||||||
Residential
real estate
|
8,935
|
21,252
|
5,998
|
19,641
|
870
|
72,743
|
161,583
|
291,022
|
||||||||
Indirect
vehicle
|
2,255
|
1,424
|
-
|
107,680
|
-
|
68,908
|
-
|
180,267
|
||||||||
Home
equity
|
6,343
|
473
|
28,115
|
14,455
|
245,631
|
10,774
|
99,648
|
405,439
|
||||||||
Consumer
loans
|
1,681
|
6,886
|
17,538
|
10,143
|
3,976
|
371
|
25,698
|
66,293
|
||||||||
Covered
loans
|
-
|
19,630
|
65,386
|
32,624
|
7,147
|
8,826
|
39,983
|
173,596
|
||||||||
Gross
loans
|
$
271,316
|
$
483,082
|
$
1,442,014
|
$
2,257,664
|
$
1,205,300
|
$
412,752
|
$
452,419
|
$
6,524,547
|
(1)
|
Excludes
purchased credit-impaired loans that were acquired as part of the
Heritage, InBank, Corus, and Benchmark transactions. Purchased
credit-impaired loans have evidence of deterioration in credit quality
prior to acquisition. Fair value of these loans as of
acquisition includes estimates of credit losses. These loans
are accounted for on a pool basis, and the pools are considered to be
performing. See Note 6 to our Consolidated
Financial Statements for further information regarding purchased
credit-impaired loans.
|
(2)
|
Excludes
non-performing loans.
|
At
December 31,
|
||||||||||
2009
|
2008
|
2007
|
2006
|
2005
|
||||||
Non-performing
loans(1):
|
||||||||||
Non-accruing
loans
|
$ 270,839
|
$ 145,936
|
$ 24,459
|
$ 21,164
|
$ 19,850
|
|||||
Loans
90 days or more past due, still accruing interest
|
477
|
-
|
-
|
304
|
321
|
|||||
Total
non-performing loans
|
271,316
|
145,936
|
24,459
|
21,468
|
20,171
|
|||||
Other
real estate owned(2)
|
36,711
|
4,366
|
1,120
|
2,844
|
354
|
|||||
Repossessed
vehicles
|
333
|
356
|
179
|
192
|
-
|
|||||
Total
non-performing assets
|
$ 308,360
|
$ 150,658
|
$ 25,758
|
$ 24,504
|
$ 20,525
|
|||||
Total
non-performing loans to total loans
|
4.16%
|
2.34%
|
0.44%
|
0.43%
|
0.58%
|
|||||
Total
non-performing assets to total assets
|
2.84%
|
1.71%
|
0.33%
|
0.31%
|
0.36%
|
|||||
Allowance
for loan losses to non-performing loans(1)
|
65.26%
|
98.67%
|
266.17%
|
274.75%
|
209.66%
|
(1)
|
This
table excludes purchased credit-impaired loans that were acquired as part
of the Heritage, InBank, Corus, and Benchmark
transactions. Purchased credit-impaired loans have evidence of
deterioration in credit quality prior to acquisition. Fair
value of these loans as of acquisition includes estimates of credit
losses. These loans are accounted for on a pool basis, and the
pools are considered to be performing. See Note 6 to our Consolidated Financial Statements for
further information regarding purchased credit-impaired
loans. This table also excludes loans held for
sale.
|
(2)
|
This
table excludes other real estate owned that is related to the Heritage,
InBank, and Benchmark FDIC-assisted transactions. Other real
estate owned related to the Heritage and Benchmark transactions, which
totaled $15.3 million at December 31, 2009, is subject to the loss sharing
agreements with the FDIC. Other real estate owned related to
InBank is performing as expected and is therefore excluded from
non-performing assets. See Note 2 of the
notes to our consolidated financial statements for further
information.
|
Amount
|
|
Balance
at December 31, 2008
|
$
4,366
|
Transfers
in at fair value less estimated costs to sell
|
46,992
|
Fair
value adjustments
|
(535)
|
Net
gains on sales of OREO
|
15
|
Cash
received upon disposition
|
(14,127)
|
Balance
at December 31, 2009
|
$
36,711
|
Commercial
and Lease Loans
|
Construction
Real Estate Loans
|
Commercial
Real Estate Loans
|
Consumer
Loans
|
Total
Loans
|
||||
Number
of Borrowers
|
Amount
|
Number
of Borrowers
|
Amount
|
Number
of Borrowers
|
Amount
|
Amount
|
Amount
|
|
$10.0
million or more
|
-
|
$ -
|
5
|
$
76,243
|
1
|
$
10,101
|
$ -
|
$ 86,344
|
$5.0
million to $9.9 million
|
-
|
-
|
8
|
52,496
|
1
|
5,647
|
-
|
58,143
|
$1.5
million to $4.9 million
|
2
|
3,518
|
11
|
31,346
|
6
|
10,493
|
1,672
|
47,029
|
Under
$1.5 million
|
33
|
8,933
|
32
|
20,906
|
78
|
32,419
|
17,542
|
79,800
|
35
|
$
12,451
|
56
|
$
180,991
|
86
|
$ 58,660
|
$ 19,214
|
$ 271,316
|
|
Percentage
of individual loan category
|
0.53%
|
30.45%
|
2.37%
|
2.04%
|
4.16%
|
Commercial
and Lease
Loans
|
Construction
Real Estate Loans
|
Commercial
Real Estate
Loans
|
Consumer
Loans
|
Total
Loans
|
||||
Number
of Borrowers
|
Amount
|
Number
of Borrowers
|
Amount
|
Number
of Borrowers
|
Amount
|
Amount
|
Amount
|
|
$5.0
million or more
|
1
|
$
10,851
|
6
|
$
50,959
|
-
|
$ -
|
$
-
|
$
61,810
|
$3.0
million to $4.9 million
|
-
|
-
|
7
|
23,647
|
3
|
10,572
|
-
|
34,219
|
$1.5
million to $2.9 million
|
-
|
-
|
1
|
2,118
|
4
|
7,345
|
-
|
9,463
|
Under
$1.5 million
|
16
|
9,167
|
16
|
9,323
|
33
|
14,141
|
7,813
|
40,444
|
17
|
$
20,018
|
30
|
$ 86,047
|
40
|
$
32,058
|
$
7,813
|
$
145,936
|
|
Percentage
of individual loan category
|
0.92%
|
11.35%
|
1.36%
|
0.83%
|
2.34%
|
Year
Ended December 31,
|
||||||||||
2009
|
2008
|
2007
|
2006
|
2005
|
||||||
Balance
at beginning of year
|
$
144,001
|
$
65,103
|
$
58,983
|
$
42,290
|
$
42,255
|
|||||
Additions
from acquisitions
|
-
|
-
|
-
|
16,425
|
-
|
|||||
Provision
for loan losses
|
231,800
|
125,721
|
19,313
|
10,100
|
8,150
|
|||||
Charge-offs:
|
||||||||||
Commercial
loans
|
(46,113)
|
(13,653)
|
(7,072)
|
(10,160)
|
(4,007)
|
|||||
Commercial
loans collateralized by assignment of lease payments
|
(5,407)
|
(1,258)
|
(515)
|
(246)
|
(826)
|
|||||
Commercial
real estate
|
(38,842)
|
(14,872)
|
(3,471)
|
(1,671)
|
(1,052)
|
|||||
Residential
real estate
|
(1,476)
|
(550)
|
(1,075)
|
(434)
|
(118)
|
|||||
Construction
real estate
|
(103,789)
|
(14,940)
|
(2,294)
|
-
|
(3,824)
|
|||||
Indirect
vehicles
|
(4,085)
|
(2,109)
|
(1,193)
|
(307)
|
-
|
|||||
Home
equity
|
(3,443)
|
(1,801)
|
(194)
|
(427)
|
(149)
|
|||||
Consumer
loans
|
(1,124)
|
(642)
|
(492)
|
(555)
|
(199)
|
|||||
Total
charge-offs
|
(204,279)
|
(49,825)
|
(16,306)
|
(13,800)
|
(10,175)
|
|||||
Recoveries:
|
||||||||||
Commercial
loans
|
1,491
|
891
|
1,265
|
2,402
|
954
|
|||||
Commercial
loans collateralized by assignment of lease payments
|
-
|
67
|
979
|
40
|
329
|
|||||
Commercial
real estate
|
40
|
266
|
37
|
378
|
51
|
|||||
Residential
real estate
|
44
|
29
|
20
|
26
|
97
|
|||||
Construction
real estate
|
2,957
|
951
|
38
|
490
|
-
|
|||||
Indirect
vehicles
|
757
|
625
|
389
|
4
|
-
|
|||||
Home
equity
|
53
|
132
|
344
|
481
|
495
|
|||||
Consumer
loans
|
208
|
41
|
41
|
147
|
134
|
|||||
Total
recoveries
|
5,550
|
3,002
|
3,113
|
3,968
|
2,060
|
|||||
Net
charge-offs
|
(198,729)
|
(46,823)
|
(13,193)
|
(9,832)
|
(8,115)
|
|||||
Balance
at December 31,
|
$ 177,072
|
$ 144,001
|
$ 65,103
|
$ 58,983
|
$
42,290
|
|||||
Total
loans at December 31,
|
$ 6,524,547
|
$ 6,228,563
|
$ 5,615,627
|
$ 4,971,494
|
$
3,480,447
|
|||||
Ratio
of allowance to total loans
|
2.71%
|
2.31%
|
1.16%
|
1.19%
|
1.22%
|
|||||
Ratio
of net charge-offs to average loans
|
3.09%
|
0.79%
|
0.25%
|
0.24%
|
0.24%
|
At
December 31,
|
|||||||||||||||
2009
|
2008
|
2007
|
2006
|
2005
|
|||||||||||
%
of Total
|
%
of Total
|
%
of Total
|
%
of Total
|
%
of Total
|
|||||||||||
Amount
|
Loans
|
Amount
|
Loans
|
Amount
|
Loans
|
Amount
|
Loans
|
Amount
|
Loans
|
||||||
Commercial
loans
|
$ 39,226
|
21%
|
$
40,217
|
24%
|
$ 15,627
|
24%
|
$ 20,918
|
21%
|
$ 14,918
|
22%
|
|||||
Commercial
loans collateralized by
|
|||||||||||||||
assignment
of lease payments (lease loans)
|
8,726
|
15%
|
10,245
|
10%
|
7,854
|
10%
|
8,897
|
8%
|
6,868
|
8%
|
|||||
Commercial
real estate
|
56,710
|
38%
|
31,241
|
38%
|
15,653
|
36%
|
10,458
|
36%
|
11,687
|
42%
|
|||||
Residential
real estate
|
2,934
|
4%
|
1,623
|
5%
|
1,430
|
6%
|
1,430
|
7%
|
776
|
6%
|
|||||
Construction
real estate
|
59,760
|
9%
|
57,443
|
13%
|
23,039
|
14%
|
15,780
|
17%
|
7,491
|
15%
|
|||||
Consumer
loans and other
|
9,716
|
13%
|
3,232
|
10%
|
1,500
|
10%
|
1,621
|
11%
|
550
|
7%
|
|||||
Total
|
$ 177,072
|
100%
|
$ 144,001
|
100%
|
$ 65,103
|
100%
|
$ 58,983
|
100%
|
$ 42,290
|
100%
|
Certificates
of deposit $100,000 and over:
|
||
Maturing
within three months
|
$ 505,996
|
|
After
three but within six months
|
420,181
|
|
After
six but within twelve months
|
328,584
|
|
After
twelve months
|
511,587
|
|
Total
certificates of deposit $100,000 and over (1)
|
$ 1,766,348
|
|
Other
time deposits $100,000 and over (2):
|
||
Maturing
within three months
|
$ 30,771
|
|
After
three but within six months
|
23,728
|
|
After
six but within twelve months
|
23,334
|
|
After
twelve months
|
41,279
|
|
Total
other time deposits $100,000 and over
|
$ 119,112
|
(1)
|
Includes
brokered deposits of $528.3
million.
|
(2)
|
Consists
of time deposits held in individual retirement accounts (IRAs) and time
certificates that the customer has the option to increase the principal
balance and maintain the original interest
rate.
|
At
December 31,
|
||||||
2009
|
2008
|
|||||
Amount
|
Percent
|
Amount
|
Percent
|
|||
Demand
deposits, noninterest bearing
|
$
1,552,185
|
17.88%
|
$
960,117
|
14.78%
|
||
NOW
and money market accounts
|
2,775,468
|
31.96%
|
1,465,436
|
22.56%
|
||
Savings
deposits
|
583,783
|
6.72%
|
367,684
|
5.66%
|
||
Time
certificates, $100,000 or more
|
1,885,460
|
21.72%
|
2,091,067
|
32.19%
|
||
Other
time certificates
|
1,886,380
|
21.72%
|
1,611,267
|
24.81%
|
||
Total
|
$
8,683,276
|
100.00%
|
$
6,495,571
|
100.00%
|
At
or For the Year Ended December 31,
|
||||||
2009
|
2008
|
2007
|
||||
Federal
funds purchased:
|
||||||
Average
balance outstanding
|
$
499
|
$
44,413
|
$
90,928
|
|||
Maximum
outstanding at any month-end during the period
|
51,000
|
175,000
|
199,100
|
|||
Balance
outstanding at end of period
|
-
|
5,000
|
170,000
|
|||
Weighted
average interest rate during the period
|
0.30%
|
3.09%
|
5.16%
|
|||
Weighted
average interest rate at end of the period
|
-
|
0.68%
|
3.86%
|
|||
Federal
Reserve term auction funds:
|
||||||
Average
balance outstanding
|
$ 84,384
|
$ 91,803
|
$
-
|
|||
Maximum
outstanding at any month-end during the period
|
100,000
|
250,000
|
-
|
|||
Balance
outstanding at end of period
|
-
|
100,000
|
-
|
|||
Weighted
average interest rate during the period
|
0.28%
|
2.59%
|
-
|
|||
Weighted
average interest rate at end of the period
|
-
|
0.42%
|
-
|
|||
Securities
sold under agreements to repurchase:
|
||||||
Average
balance outstanding
|
$ 248,128
|
$ 291,013
|
$ 323,132
|
|||
Maximum
outstanding at any month-end during the period
|
305,632
|
366,271
|
409,848
|
|||
Balance
outstanding at end of period (1)
|
223,917
|
282,832
|
367,702
|
|||
Weighted
average interest rate during the period
|
0.46%
|
1.49%
|
3.66%
|
|||
Weighted
average interest rate at end of the period
|
0.50%
|
0.48%
|
3.02%
|
|||
Federal
Home Loan Bank advances:
|
||||||
Average
balance outstanding
|
$ 116,538
|
$ 252,452
|
$ 397,065
|
|||
Maximum
outstanding at any month-end during the period
|
200,785
|
344,011
|
440,019
|
|||
Balance
outstanding at end of period
|
100,000
|
100,787
|
440,019
|
|||
Weighted
average interest rate during the period
|
3.25%
|
3.75%
|
5.23%
|
|||
Weighted
average interest rate at end of the period
|
3.35%
|
2.46%
|
5.05%
|
|||
Correspondent
bank lines of credit:
|
||||||
Average
balance outstanding
|
$
-
|
$
1,393
|
$ 1,555
|
|||
Maximum
outstanding at any month-end during the period
|
-
|
10,000
|
10,000
|
|||
Balance
outstanding at end of period
|
-
|
-
|
-
|
|||
Weighted
average interest rate during the period
|
-
|
3.23%
|
5.72%
|
|||
Weighted
average interest rate at end of the period
|
-
|
-
|
-
|
(1)
|
Balance
includes customer repurchase agreements totaling $223.9 million, $282.8
million and $367.7 million at December 31, 2009, 2008 and 2007,
respectively.
|
Contractual
Obligations
|
Total
|
Less
than 1
Year
|
1
- 3 Years
|
3
- 5 Years
|
More
than 5
Years
|
Time
certificates
|
$ 3,771,840
|
$ 3,158,663
|
$ 477,429
|
$
122,838
|
$
12,910
|
Long-term
borrowings
|
331,349
|
47,350
|
81,510
|
9,030
|
193,459
|
Junior
subordinated notes issued to capital trusts(1)
|
158,677
|
-
|
-
|
-
|
158,677
|
Operating
leases
|
59,820
|
4,504
|
8,392
|
6,705
|
40,219
|
Capital
expenditures
|
29,173
|
29,173
|
-
|
-
|
-
|
Total
|
$ 4,350,859
|
$ 3,239,690
|
$ 567,331
|
$
138,573
|
$
405,265
|
Commitments
to extend credit and letters of credit
|
$ 1,603,476
|
(1)
|
Call
dates are set forth in Note 13 to the audited consolidated financial
statements under Item 8. Financial Statements and Supplementary
Data.
|
Required
|
|||||||||||
To
Be Well
|
|||||||||||
Required
|
Capitalized
Under
|
||||||||||
For
Capital
|
Prompt
Corrective
|
||||||||||
Actual
|
Adequacy
Purposes
|
Action
Provisions
|
|||||||||
Amount
|
Ratio
|
Amount
|
Ratio
|
Amount
|
Ratio
|
||||||
Total
capital (to risk-weighted assets):
|
|||||||||||
Consolidated
|
$ 1,130,496
|
15.45%
|
$ 585,205
|
8.00%
|
N/A
|
N/A
|
|||||
MB
Financial Bank
|
965,507
|
13.25%
|
583,035
|
8.00%
|
$ 728,793
|
10.00%
|
|||||
Tier
1 capital (to risk-weighted assets):
|
|||||||||||
Consolidated
|
$ 988,335
|
13.51%
|
$ 292,603
|
4.00%
|
N/A
|
N/A
|
|||||
MB
Financial Bank
|
823,346
|
11.30%
|
291,517
|
4.00%
|
$ 437,276
|
6.00%
|
|||||
Tier
1 capital (to average assets):
|
|||||||||||
Consolidated
|
$ 988,335
|
8.71%
|
$ 453,939
|
4.00%
|
N/A
|
N/A
|
|||||
MB
Financial Bank
|
823,346
|
7.27%
|
452,938
|
4.00%
|
$ 566,172
|
5.00%
|
Time
to Maturity or Repricing
|
||||||||||
0
– 90
|
91
- 365
|
1
– 5
|
Over
5
|
|||||||
Days
|
Days
|
Years
|
Years
|
Total
|
||||||
Interest
Earning Assets:
|
||||||||||
Interest
bearing deposits with banks
|
$
263,192
|
$ 584
|
$
1,481
|
$ -
|
$ 265,257
|
|||||
Investment
securities available for sale
|
463,270
|
498,513
|
1,400,242
|
551,569
|
2,913,594
|
|||||
Loans
|
3,259,227
|
983,358
|
2,147,465
|
134,497
|
6,524,547
|
|||||
Total
interest earning assets
|
$
3,985,689
|
$ 1,482,455
|
$
3,549,188
|
$ 686,066
|
$ 9,703,398
|
|||||
Interest
Bearing Liabilities:
|
||||||||||
NOW
and money market deposit accounts
|
$
187,748
|
$ 609,255
|
$
1,647,370
|
$ 331,095
|
$ 2,775,468
|
|||||
Savings
deposits
|
33,270
|
96,621
|
332,078
|
121,813
|
583,782
|
|||||
Time
deposits
|
1,140,177
|
1,991,227
|
625,715
|
14,721
|
3,771,840
|
|||||
Short-term
borrowings
|
132,681
|
58,787
|
117,982
|
14,467
|
323,917
|
|||||
Long-term
borrowings
|
102,427
|
34,569
|
91,845
|
102,508
|
331,349
|
|||||
Junior
subordinated notes issued to capital trusts
|
152,065
|
-
|
-
|
6,612
|
158,677
|
|||||
Total
interest bearing liabilities
|
$
1,748,368
|
$ 2,790,459
|
$
2,814,990
|
$ 591,216
|
$ 7,945,033
|
|||||
Rate
sensitive assets (RSA)
|
$
3,985,689
|
$ 5,468,144
|
$
9,017,332
|
$ 9,703,398
|
$ 9,703,398
|
|||||
Rate
sensitive liabilities (RSL)
|
$
1,748,368
|
$ 4,538,827
|
$
7,353,817
|
$ 7,945,033
|
$ 7,945,033
|
|||||
Cumulative
GAP (GAP=RSA-RSL)
|
$
2,237,321
|
$ 929,317
|
$
1,663,515
|
$ 1,758,365
|
$ 1,758,365
|
|||||
RSA/Total
assets
|
36.68%
|
50.33%
|
82.99%
|
89.31%
|
89.31%
|
|||||
RSL/Total
assets
|
16.09%
|
41.77%
|
67.68%
|
73.12%
|
73.12%
|
|||||
GAP/Total
assets
|
20.59%
|
8.55%
|
15.31%
|
16.18%
|
16.18%
|
|||||
GAP/RSA
|
56.13%
|
17.00%
|
18.45%
|
18.12%
|
18.12%
|
Gradual
|
Change
in Net Interest Income Over One Year Horizon
|
|||||
Changes
in
|
At
December 31, 2009
|
At
December 31, 2008
|
||||
Levels
of
|
Dollar
|
Percentage
|
Dollar
|
Percentage
|
||
Interest
Rates
|
Change
|
Change
|
Change
|
Change
|
||
+2.00%
|
$ 8,856
|
2.60
%
|
$ 8,664
|
3.40
%
|
||
+1.00%
|
6,425
|
1.89
%
|
3,328
|
1.30
%
|
Page
|
|
MANAGEMENT’S REPORT ON INTERNAL CONTROL OVER FINANCIAL
REPORTING..........................................................................................................
|
|
REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM ON
THE CONSOLIDATED FINANCIAL STATEMENTS..............................
|
|
FINANCIAL
STATEMENTS
|
|
Consolidated Balance
Sheets…….........................................................................................................……………………………..................................……………
|
|
Consolidated Statements of
Operations..……………………………………………………………..................................................................................................
|
|
Consolidated Statements of Changes in Stockholders'
Equity………………………………………..............................................................................................
|
|
Consolidated Statements of Cash
Flows……………………………………………………………...................................................................................................
|
|
Notes to Consolidated Financial
Statements………………………………………………………....................................................................................................
|
|
/s/ Mitchell Feiger
|
/s/ Jill E. York
|
||
Mitchell
Feiger
|
Jill
E. York
|
||
President
and
|
Vice
President and
|
||
Chief
Executive Officer
|
Chief
Financial Officer
|
December
31,
|
December
31,
|
|||||
2009
|
2008
|
|||||
ASSETS
|
||||||
Cash
and due from banks
|
$ 136,763
|
$ 79,824
|
||||
Interest
bearing deposits with banks
|
265,257
|
261,834
|
||||
Total
cash and cash equivalents
|
402,020
|
341,658
|
||||
Investment
securities:
|
||||||
Securities
available for sale, at fair value
|
2,843,233
|
1,336,130
|
||||
Non-marketable
securities - FHLB and FRB stock
|
70,361
|
64,246
|
||||
Total
investment securities
|
2,913,594
|
1,400,376
|
||||
Loans:
|
||||||
Total
loans, excluding covered loans
|
6,350,951
|
6,228,563
|
||||
Covered
loans
|
173,596
|
-
|
||||
Total
loans
|
6,524,547
|
6,228,563
|
||||
Less:
Allowance for loan loss
|
177,072
|
144,001
|
||||
Net
Loans
|
6,347,475
|
6,084,562
|
||||
Lease
investment, net
|
144,966
|
125,034
|
||||
Premises
and equipment, net
|
179,641
|
186,474
|
||||
Cash
surrender value of life insurance
|
121,946
|
119,526
|
||||
Goodwill,
net
|
387,069
|
387,069
|
||||
Other
intangibles, net
|
37,708
|
25,776
|
||||
Other
real estate owned, net
|
36,711
|
4,366
|
||||
Other
real estate owned related to FDIC transactions
|
18,759
|
-
|
||||
FDIC
indemnification asset
|
42,212
|
-
|
||||
Other
assets
|
233,292
|
144,922
|
||||
Total
assets
|
$ 10,865,393
|
$ 8,819,763
|
||||
LIABILITIES
AND STOCKHOLDERS' EQUITY
|
||||||
LIABILITIES
|
||||||
Deposits:
|
||||||
Noninterest
bearing
|
$ 1,552,185
|
$ 960,117
|
||||
Interest
bearing
|
7,131,091
|
5,535,454
|
||||
Total
deposits
|
8,683,276
|
6,495,571
|
||||
Short-term
borrowings
|
323,917
|
488,619
|
||||
Long-term
borrowings
|
331,349
|
471,466
|
||||
Junior
subordinated notes issued to capital trusts
|
158,677
|
158,824
|
||||
Accrued
expenses and other liabilities
|
116,994
|
136,459
|
||||
Total
liabilities
|
9,614,213
|
7,750,939
|
||||
STOCKHOLDERS'
EQUITY
|
||||||
Preferred
stock, ($0.01 par value, authorized 1,000,000 shares at December
31,
|
||||||
2009
and December 31, 2008; series A, 5% cumulative perpetual,
196,000
|
||||||
shares
issued and outstanding at December 31, 2009 and December 31,
2008,
|
||||||
$1,000
liquidation value)
|
193,522
|
193,025
|
||||
Common
stock, ($0.01 par value; authorized 70,000,000 shares at December
31,
|
||||||
2009
and 50,000,000 at December 31, 2008; issued 51,109,944 shares at December
31,
|
||||||
2009
and 37,542,968 at December 31, 2008)
|
511
|
375
|
||||
Additional
paid-in capital
|
656,595
|
445,692
|
||||
Retained
earnings
|
395,170
|
495,505
|
||||
Accumulated
other comprehensive income
|
5,546
|
16,910
|
||||
Less:
133,903 and 2,612,143 shares of Treasury stock, at cost,
at
|
||||||
December
31, 2009 and December 31, 2008, respectively
|
(2,715)
|
(85,312)
|
||||
Controlling
interest stockholders' equity
|
1,248,629
|
1,066,195
|
||||
Noncontrolling
interest
|
2,551
|
2,629
|
||||
Total
stockholders' equity
|
1,251,180
|
1,068,824
|
||||
Total
liabilities and stockholders' equity
|
$ 10,865,393
|
$ 8,819,763
|
MB
FINANCIAL, INC. & SUBSIDIARIES
|
||||||
Years
Ended December 31, 2009, 2008 and 2007
|
||||||
(Amounts
in thousands, except share and per share data)
|
||||||
2009
|
2008
|
2007
|
||||
Interest
income:
|
||||||
Loans
|
$ 331,270
|
$ 357,075
|
$ 393,016
|
|||
Investment
securities available for sale:
|
||||||
Taxable
|
45,777
|
40,468
|
49,675
|
|||
Nontaxable
|
14,754
|
15,502
|
13,862
|
|||
Federal
funds sold
|
-
|
276
|
449
|
|||
Other
interest bearing accounts
|
1,737
|
467
|
264
|
|||
Total
interest income
|
393,538
|
413,788
|
457,266
|
|||
Interest
expense:
|
||||||
Deposits
|
121,614
|
151,370
|
185,649
|
|||
Short-term
borrowings
|
5,166
|
17,590
|
37,354
|
|||
Long-term
borrowings and junior subordinated notes
|
16,206
|
23,940
|
21,957
|
|||
Total
interest expense
|
142,986
|
192,900
|
244,960
|
|||
Net
interest income
|
250,552
|
220,888
|
212,306
|
|||
Provision
for loan losses
|
231,800
|
125,721
|
19,313
|
|||
Net
interest income after provision for loan losses
|
18,752
|
95,167
|
192,993
|
|||
Other
income:
|
||||||
Loan
service fees
|
6,913
|
9,180
|
6,258
|
|||
Deposit
service fees
|
30,600
|
28,225
|
23,918
|
|||
Lease
financing, net
|
18,528
|
16,973
|
15,847
|
|||
Brokerage
fees
|
4,606
|
4,317
|
9,581
|
|||
Asset
management and trust fees
|
12,593
|
11,869
|
10,447
|
|||
Net
gain (loss) on sale of securities available for sale
|
14,029
|
1,130
|
(3,744)
|
|||
Increase
in cash surrender value of life insurance
|
2,459
|
5,299
|
5,003
|
|||
Net
(loss) gain on sale of assets
|
(13)
|
(1,104)
|
10,097
|
|||
Acquisition
related gains
|
28,547
|
-
|
-
|
|||
Other
operating income
|
8,892
|
4,504
|
6,121
|
|||
Total
other income
|
127,154
|
80,393
|
83,528
|
|||
Other
expenses:
|
||||||
Salaries
and employee benefits
|
120,654
|
108,835
|
110,809
|
|||
Occupancy
and equipment expense
|
31,521
|
28,872
|
28,878
|
|||
Computer
services expense
|
10,011
|
7,392
|
6,699
|
|||
Advertising
and marketing expense
|
4,185
|
5,089
|
4,859
|
|||
Professional
and legal expense
|
4,680
|
3,110
|
4,543
|
|||
Brokerage
fee expense
|
1,999
|
1,929
|
4,802
|
|||
Telecommunication
expense
|
3,433
|
2,818
|
2,805
|
|||
Other
intangibles amortization expense
|
4,491
|
3,554
|
3,504
|
|||
FDIC
insurance premiums
|
16,762
|
1,877
|
664
|
|||
Charitable
contributions
|
73
|
30
|
4,686
|
|||
Impairment
charges on branch facilities
|
4,000
|
-
|
-
|
|||
Other
operating expenses
|
21,941
|
19,884
|
19,257
|
|||
Total
other expenses
|
223,750
|
183,390
|
191,506
|
|||
Income
(loss) before income taxes and discontinued operations
|
(77,844)
|
(7,830)
|
85,015
|
|||
Income
taxes
|
(45,265)
|
(23,555)
|
23,670
|
|||
Income
(loss) from continuing operations
|
(32,579)
|
15,725
|
61,345
|
|||
Income
from discontinued operations, net of tax
|
6,453
|
439
|
32,518
|
|||
Net
income (loss)
|
$ (26,126)
|
$ 16,164
|
$ 93,863
|
|||
Dividends
on preferred shares
|
10,298
|
789
|
-
|
|||
Net
income (loss) available to common shareholders
|
$ (36,424)
|
$ 15,375
|
$ 93,863
|
MB
FINANCIAL, INC. & SUBSIDIARIES
|
||||||
CONSOLIDATED
STATEMENTS OF INCOME
|
||||||
Years
Ended December 31, 2009, 2008 and 2007
|
||||||
(Amounts
in thousands, except share and per share data)
|
||||||
Common
share data:
|
||||||
2009
|
2008
|
2007
|
||||
Basic
earnings (loss) per common share from continuing
operations
|
$
(0.81)
|
$
0.45
|
$ 1.70
|
|||
Basic
earnings per common share from discontinued operations
|
0.16
|
0.01
|
0.91
|
|||
Impact
of preferred stock dividends on basic earnings (loss) per common
share
|
(0.26)
|
(0.02)
|
-
|
|||
Basis
earnings (loss) per common share
|
(0.91)
|
0.44
|
2.61
|
|||
Diluted
earnings (loss) per common share from continuing
operations
|
(0.81)
|
0.45
|
1.68
|
|||
Diluted
earnings per common share from discontinued operations
|
0.16
|
0.01
|
0.89
|
|||
Impact
of preferred stock dividends on diluted earnings (loss) per common
share
|
(0.26)
|
(0.02)
|
-
|
|||
Diluted
earnings (loss) per common share
|
(0.91)
|
0.44
|
2.57
|
|||
Weighted
average common shares outstanding
|
40,042,655
|
34,706,092
|
35,919,900
|
|||
Diluted
weighted average common shares outstanding
|
40,042,655
|
35,061,712
|
36,439,561
|
MB
FINANCIAL, INC. & SUBSIDIARIES
|
|||||||||
Years
Ended December 31, 2009, 2008 and 2007
|
|||||||||
(Amounts
in thousands, except share and per share data)
|
|||||||||
Accumulated
|
|||||||||
Other
|
|||||||||
Additional
|
Comprehensive
|
Total
Stock-
|
|||||||
Comprehensive
|
Preferred
|
Common
|
Paid-in
|
Retained
|
Income
(Loss),
|
Treasury
|
Noncontrolling
|
holders'
|
|
Income
|
Stock
|
Stock
|
Capital
|
Earnings
|
Net
of Tax
|
Stock
|
Interest
|
Equity
|
|
Balance
at January 1, 2007
|
$
-
|
$
373
|
$
439,502
|
$
437,353
|
$
(7,602)
|
$ (22,674)
|
$ -
|
$
846,952
|
|
Net
income
|
$ 93,863
|
93,863
|
93,863
|
||||||
Unrealized
holding gains on investment securities,
|
|||||||||
net
of tax expense of $6,715
|
12,470
|
||||||||
Reclassification
adjustments for losses included in
|
|||||||||
net
income, net of tax benefit of ($1,469)
|
2,729
|
||||||||
Other
comprehensive income, net of tax
|
15,199
|
15,199
|
15,199
|
||||||
Comprehensive
income
|
$ 109,062
|
||||||||
Issuance
of 68,695 shares of restricted stock, net of
|
|||||||||
forfeitures
and amortization
|
1
|
2,112
|
2,113
|
||||||
Purchase
of 2,333,270 shares of treasury stock
|
(77,524)
|
(77,524)
|
|||||||
Reissuance
of 2,250 shares of treasury stock for
|
|||||||||
employee
stock awards
|
(70)
|
80
|
10
|
||||||
Reissuance
of 40,428 shares of treasury stock for
|
|||||||||
prior
Company Directors’ fees deferred
|
(819)
|
1,631
|
812
|
||||||
Paid-in
capital – stock options
|
2,127
|
2,127
|
|||||||
Stock
options exercised - Reissuance of 173,415
|
|||||||||
shares
of treasury stock
|
(2,709)
|
6,498
|
3,789
|
||||||
Excess
tax benefits from stock-based payment
|
|||||||||
arrangements
|
984
|
984
|
|||||||
Cash
dividends declared ($0.72 per share)
|
(25,956)
|
(25,956)
|
|||||||
Purchase
of 2,276 shares held in trust for
|
|||||||||
deferred
compensation plan
|
74
|
(74)
|
-
|
||||||
Balance
at December 31, 2007
|
$
-
|
$
374
|
$
441,201
|
$
505,260
|
$
7,597
|
$ (92,063)
|
$
-
|
$
862,369
|
|
Net
income
|
$ 16,164
|
16,164
|
129
|
16,293
|
|||||
Unrealized
holding gains on investment securities,
|
|||||||||
net
of tax expense of $5,410
|
10,048
|
||||||||
Reclassification
adjustments for gains included in
|
|||||||||
net
income, net of tax expense of ($395)
|
(735)
|
||||||||
Other
comprehensive income, net of tax
|
9,313
|
9,313
|
9,313
|
||||||
Comprehensive
income
|
$ 25,477
|
||||||||
Noncontrolling
interest of acquiree
|
2,500
|
2,500
|
|||||||
Issuance
of 126,078 shares of restricted stock, net of
|
|||||||||
forfeitures
and amortization
|
1
|
2,227
|
2,228
|
||||||
Purchase
of 51,274 shares of treasury stock
|
(1,349)
|
(1,349)
|
|||||||
Reissuance
of 13,098 shares of treasury stock for
|
|||||||||
employee
stock awards
|
(465)
|
465
|
-
|
||||||
Issuance
of 15,867 shares for employee stock awards
|
-
|
||||||||
Paid-in
capital – stock options
|
651
|
651
|
|||||||
Stock
options exercised - Reissuance of 230,877
|
|||||||||
shares
of treasury stock
|
(3,590)
|
8,175
|
4,585
|
||||||
Excess
tax benefits from stock-based payment
|
|||||||||
arrangements
|
2,032
|
2,032
|
|||||||
Issuance
of preferred stock
|
192,944
|
192,944
|
|||||||
Issuance
of stock warrant
|
3,056
|
3,056
|
|||||||
Dividends
on preferred shares
|
81
|
(789)
|
(708)
|
||||||
Restricted
stock unit dividends
|
40
|
(40)
|
-
|
||||||
Cash
dividends declared ($0.72 per share)
|
(25,090)
|
(25,090)
|
|||||||
Purchase
of 19,271 shares held in trust for
|
|||||||||
deferred
compensation plan
|
540
|
(540)
|
-
|
||||||
Balance
at December 31, 2008
|
$ 193,025
|
$
375
|
$
445,692
|
$
495,505
|
$
16,910
|
$ (85,312)
|
$ 2,629
|
$ 1,068,824
|
MB
FINANCIAL, INC. & SUBSIDIARIES
|
|||||||||
CONSOLIDATED
STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY
|
|||||||||
Years
Ended December 31, 2009, 2008 and 2007
|
|||||||||
(Amounts
in thousands, except share and per share data)
|
|||||||||
Accumulated
|
|||||||||
Other
|
|||||||||
Additional
|
Comprehensive
|
Total
Stock-
|
|||||||
Comprehensive
|
Preferred
|
Common
|
Paid-in
|
Retained
|
Income
(Loss),
|
Treasury
|
Noncontrolling
|
holders'
|
|
Income
(loss)
|
Stock
|
Stock
|
Capital
|
Earnings
|
Net
of Tax
|
Stock
|
Interest
|
Equity
|
|
Balance
at January 1, 2009
|
$ 193,025
|
$ 375
|
$ 445,692
|
$ 495,505
|
$ 16,910
|
$ (85,312)
|
$ 2,629
|
$ 1,068,824
|
|
Net
income (loss)
|
$
(26,126)
|
(26,126)
|
166
|
(25,960)
|
|||||
Unrealized
holding losses on investment securities,
|
|||||||||
net
of tax benefit of $1,301
|
(4,195)
|
||||||||
Reclassification
adjustments for gains included in
|
|||||||||
net
income, net of tax expense of ($6,860)
|
(7,169)
|
||||||||
Other
comprehensive loss, net of tax
|
(11,364)
|
(11,364)
|
(11,364)
|
||||||
Comprehensive
loss
|
$
(37,490)
|
||||||||
Reissuance
of 328,070 shares of treasury stock, for
|
|||||||||
restricted
stock awards, net of forfeitures and amortization
|
2,684
|
(10,660)
|
10,660
|
2,684
|
|||||
Issuance
of 21,305 shares of common stock for restricted
|
|||||||||
stock
awards
|
-
|
-
|
-
|
||||||
Restricted
stock vested - tax effect from change in
|
|||||||||
market
value
|
(403)
|
(403)
|
|||||||
Purchase
of 9,099 shares of treasury stock
|
(130)
|
(130)
|
|||||||
Reissuance
of 4,985 shares of treasury stock for
|
|||||||||
employee
stock awards
|
(55)
|
(107)
|
162
|
-
|
|||||
Paid-in
capital – stock options
|
2,426
|
2,426
|
|||||||
Stock
options exercised - Reissuance of 46,349
|
|||||||||
shares
of treasury stock
|
96
|
(835)
|
1,173
|
434
|
|||||
Tax
effect of expired non-qualified stock options
|
(207)
|
(207)
|
|||||||
Excess
tax benefits from stock-based payment
|
|||||||||
arrangements
|
28
|
28
|
|||||||
Issuance
of 13,545,671 shares of common stock,
|
|||||||||
net
of issuance costs
|
136
|
206,245
|
206,381
|
||||||
Reissuance
of 2,120,761 shares of treasury stock for
|
-
|
||||||||
Dividend
Reinvestment and Stock Purchase Plan
|
(46,851)
|
70,812
|
23,961
|
||||||
Dividends
and discount accretion on preferred shares
|
497
|
(10,298)
|
(9,801)
|
||||||
Restricted
stock unit dividends
|
9
|
(9)
|
-
|
||||||
Cash
dividends declared ($0.15 per share)
|
(5,449)
|
(5,449)
|
|||||||
Distributions
to noncontrolling interest
|
(244)
|
(244)
|
|||||||
Purchase
of 12,826 shares held in trust for
|
|||||||||
deferred
compensation plan
|
80
|
(80)
|
-
|
||||||
Balance
at December 31, 2009
|
$ 193,522
|
$ 511
|
$ 656,595
|
$ 395,170
|
$
5,546
|
$ (2,715)
|
$ 2,551
|
$ 1,251,180
|
See
Accompanying Notes to Consolidated Financial
Statements.
|
MB
FINANCIAL, INC. & SUBSIDIARIES
|
|||||
Years
Ended December 31, 2009, 2008 and 2007
|
|||||
(Amounts
in Thousands)
|
|||||
2009
|
2008
|
2007
|
|||
Cash
Flows From Operating Activities
|
|||||
|
$
(26,126)
|
$ 16,164
|
$
93,863
|
||
Net
income from discontinued operations
|
(6,453)
|
(439)
|
(32,518)
|
||
Adjustments
to reconcile net income (loss) to net cash provided by
continuing operating activities:
|
|||||
Depreciation
on premises and equipment
|
11,776
|
11,743
|
11,179
|
||
Depreciation
on leased equipment
|
38,267
|
31,995
|
26,097
|
||
Impairment
charges on branch facilities
|
4,000
|
-
|
-
|
||
Amortization
of restricted stock awards
|
2,684
|
2,228
|
2,113
|
||
Compensation
expense for stock option grants
|
2,454
|
651
|
3,110
|
||
(Gain)
loss on sales of premises and equipment and leased
equipment
|
382
|
382
|
(11,683)
|
||
Amortization
of other intangibles
|
4,491
|
3,554
|
3,504
|
||
Provision
for loan losses
|
231,800
|
125,721
|
19,313
|
||
Deferred
income tax expense (benefit)
|
5,525
|
(22,574)
|
(683)
|
||
Amortization
of premiums and discounts on investment securities, net
|
13,839
|
3,519
|
2,274
|
||
Accretion
of premiums and discounts on loans, net
|
(1,362)
|
(2,732)
|
(3,272)
|
||
Net
(gain) loss on sale of investment securities
|
(14,029)
|
(1,130)
|
3,744
|
||
Proceeds
from sale of loans held for sale
|
109,560
|
44,108
|
61,794
|
||
Origination
of loans held for sale
|
(108,434)
|
(43,586)
|
(60,994)
|
||
Net
gain on sale of loans held for sale
|
(1,126)
|
(522)
|
(800)
|
||
Net
gains on acquisitions
|
(28,547)
|
-
|
-
|
||
Increase
in cash surrender value of life insurance
|
(2,420)
|
(2,836)
|
(2,556)
|
||
(Increase)
decrease in other assets
|
(66,537)
|
(36,484)
|
9,460
|
||
(Decrease)
increase in other liabilities, net
|
(28,556)
|
17,475
|
17,092
|
||
Net
cash provided by continuing operating activities
|
141,188
|
147,237
|
141,037
|
||
Cash
Flows From Investing Activities
|
|||||
Proceeds
from sales of investment securities available for sale
|
2,178,910
|
14,806
|
315,837
|
||
Proceeds
from maturities and calls of investment securities available for
sale
|
389,775
|
351,420
|
409,777
|
||
Purchase
of investment securities available for sale
|
(2,167,106)
|
(513,396)
|
(317,653)
|
||
Net
increase in loans
|
(197,730)
|
(657,026)
|
(654,054)
|
||
Purchases
of premises and equipment
|
(9,471)
|
(15,440)
|
(17,238)
|
||
Purchases
of leased equipment
|
(59,436)
|
(61,050)
|
(47,397)
|
||
Proceeds
from sales of premises and equipment
|
507
|
129
|
21,842
|
||
Proceeds
from sales of leased equipment
|
3,345
|
3,164
|
6,597
|
||
Principal
paid on lease investments
|
(119)
|
(1,099)
|
(774)
|
||
Cash
proceeds received from sale of bank subsidiary
|
-
|
-
|
76,148
|
||
Net
cash proceeds received in FDIC assisted transactions
|
4,673,246
|
-
|
-
|
||
Cash
paid, net of cash and cash equivalents in acquisitions
|
-
|
(9,333)
|
-
|
||
Net
cash provided by (used in) continuing investing activities
|
4,811,921
|
(887,825)
|
(206,915)
|
||
Cash
Flows From Financing Activities
|
|||||
Net
(decrease) increase in deposits
|
(4,804,285)
|
981,788
|
(66,770)
|
||
Net
(decrease) increase in short-term borrowings
|
(171,733)
|
(489,102)
|
210,117
|
||
Proceeds
from long-term borrowings
|
4,962
|
285,384
|
51,530
|
||
Principal
paid on long-term borrowings
|
(145,078)
|
(22,783)
|
(9,445)
|
||
Proceeds
from junior subordinated notes issued to capital trusts
|
-
|
-
|
52,500
|
||
Principal
paid on junior subordinated notes issued to capital trusts
|
-
|
-
|
(71,800)
|
||
Issuance
of common stock, net of issuance costs
|
206,381
|
-
|
-
|
||
Issuance
of preferred stock
|
-
|
192,944
|
-
|
||
Issuance
of common stock warrant
|
-
|
3,056
|
-
|
||
Treasury
stock transactions, net
|
23,961
|
(1,348)
|
(76,703)
|
||
Stock
options exercised
|
1,269
|
4,585
|
3,789
|
||
Excess
tax benefits from share-based payment arrangements
|
28
|
2,032
|
984
|
||
Dividends
paid on preferred stock
|
(9,256)
|
-
|
-
|
||
Dividends
paid on common stock
|
(5,449)
|
(25,090)
|
(25,956)
|
||
Net
cash (used in) provided by continuing financing activities
|
(4,899,200)
|
931,466
|
68,246
|
||
Net
increase in cash and cash equivalents from continuing
operations
|
$
53,909
|
$ 190,878
|
$
2,368
|
||
Cash
Flows From Discontinued Operations
|
|||||
Net cash
provided by operating activities of discontinued
operations
|
6,453
|
439
|
6,497
|
||
Net cash
used in investing activities of discontinued operations
|
-
|
-
|
(21,191)
|
||
Net cash
provided by financing activities of discontinued
operations
|
-
|
-
|
2,617
|
||
Net
cash provided by (used in) discontinued operations
|
6,453
|
439
|
(12,077)
|
||
Net
increase/(decrease) in cash and cash equivalents
|
$
60,362
|
$ 191,317
|
$ (9,709)
|
||
Cash
and cash equivalents:
|
|||||
Beginning
of year (1)
|
341,658
|
150,341
|
160,050
|
||
End
of year
|
$
402,020
|
$
341,658
|
$
150,341
|
||
(1) Includes balances from discontinued operations |
$
-
|
$
-
|
$ 12,757
|
(continued)
|
MB
FINANCIAL, INC. & SUBSIDIARIES
|
||||||
CONSOLIDATED
STATEMENTS OF CASH FLOWS (continued)
|
||||||
Years
Ended December 31, 2009, 2008 and 2007
|
||||||
(Amounts
in Thousands)
|
||||||
2009
|
2008
|
2007
|
||||
Supplemental
Disclosures of Cash Flow Information:
|
||||||
Cash
payments for:
|
||||||
Interest
paid to depositors and other borrowed funds
|
$
152,624
|
$
190,266
|
$
249,292
|
|||
Net
income tax (refunds) payments
|
(12,456)
|
12,767
|
35,642
|
|||
Supplemental
Schedule of Noncash Investing Activities:
|
||||||
Loans
transferred to other real estate owned
|
$
46,992
|
$ 6,327
|
$
1,249
|
|||
Loans
transferred to repossessed vehicles
|
1,944
|
1,519
|
681
|
|||
Loans
securitized transferred to investment securities available for
sale
|
-
|
50,914
|
-
|
|||
Long-term
borrowings reclassified to short-term borrowings
|
-
|
-
|
79,100
|
|||
Supplemental
Schedule of Noncash Investing Activities:
|
||||||
Acquisitions
|
||||||
Noncash
assets acquired:
|
||||||
Investment
securities available for sale
|
$ 1,931,617
|
$
-
|
$
-
|
|||
Loans,
net of discount
|
295,620
|
-
|
-
|
|||
Other
real estate owned, net of discount
|
16,199
|
- | - | |||
Premises
and equipment, net
|
-
|
72
|
-
|
|||
Goodwill,
net
|
-
|
8,022
|
-
|
|||
Other
intangibles, net
|
16,422
|
3,978
|
-
|
|||
FDIC
indemnification asset
|
94,179
|
-
|
-
|
|||
Other
assets
|
12,679
|
828
|
-
|
|||
Total
noncash assets acquired:
|
$ 2,366,716
|
$ 12,900
|
$
-
|
|||
Liabilities
assumed:
|
||||||
Deposits
|
$ 6,991,990
|
$
-
|
$
-
|
|||
Short-term
borrowings
|
7,031
|
-
|
-
|
|||
Accrued
expenses and other liabilities
|
12,394
|
1,067
|
-
|
|||
Total
liabilities assumed:
|
$ 7,011,415
|
$ 1,067
|
$
-
|
|||
Net
noncash assets acquired:
|
$ (4,644,699)
|
$
11,833
|
$
-
|
|||
Cash
and cash equivalents acquired
|
$ 4,673,246
|
$ 667
|
$
-
|
|||
Noncontrolling
interest
|
$
-
|
$
2,500
|
$
-
|
|||
Net
gains recorded on acquisitions
|
$ 28,547
|
$ -
|
$
-
|
Years
Ended
|
|||||
December
31,
|
|||||
2009
|
2008
|
2007
|
|||
Distributed
earnings allocated to common stock
|
$ 5,419
|
$
24,953
|
$
25,867
|
||
Undistributed
earnings (loss) allocated to common stock
|
(37,832)
|
(9,314)
|
35,265
|
||
Net
earnings (loss) from continuing operations allocated to common
stock
|
(32,413)
|
15,639
|
61,132
|
||
Net
earnings from discontinued operations allocated to common
stock
|
6,453
|
439
|
32,518
|
||
Less:
Preferred stock dividends and discount accretion
|
10,298
|
789
|
-
|
||
Net
earnings (loss) allocated to common stock
|
(36,258)
|
15,289
|
93,650
|
||
Net
earnings (loss) allocated to participating securities
|
(166)
|
86
|
213
|
||
Net
income (loss) allocated to common stock and participating
securities
|
$ (36,424)
|
$
15,375
|
$
93,863
|
||
Weighted
average shares outstanding for basic earnings per common
share
|
40,042,655
|
34,706,092
|
35,919,900
|
||
Dilutive
effect of stock compensation
|
-
|
355,620
|
519,661
|
||
Weighted
average shares outstanding for diluted earnings per common
share
|
40,042,655
|
35,061,712
|
36,439,561
|
||
Basic
earnings (loss) per common share from continuing
operations
|
$ (0.81)
|
$
0.45
|
$
1.70
|
||
Basic
earnings per common share from discontinued operations
|
$
0.16
|
$
0.01
|
$
0.91
|
||
Impact
of preferred stock dividends on basic earnings (loss) per common
share
|
$
(0.26)
|
$
(0.02)
|
$
-
|
||
Basic
earnings (loss) per common share
|
$
(0.91)
|
$
0.44
|
$
2.61
|
||
Diluted
earnings (loss) per common share from continuing
operations
|
$ (0.81)
|
$
0.45
|
$
1.68
|
||
Diluted
earnings per common share from discontinued operations
|
$
0.16
|
$
0.01
|
$
0.89
|
||
Impact
of preferred stock dividends on diluted earnings (loss) per common
share
|
$
(0.26)
|
$
(0.02)
|
$
-
|
||
Diluted
earnings (loss) per common share
|
$
(0.91)
|
$
0.44
|
$
2.57
|
Assets
Acquired and Liabilities Assumed
|
||||||||
(Dollar
Amounts in Thousands)
|
||||||||
Heritage
|
InBank
|
Corus
|
Benchmark
|
|||||
February
27, 2009
|
September
4, 2009
|
September
11, 2009
|
December
4, 2009
|
|||||
ASSETS
|
||||||||
Cash
and cash equivalents
|
$
36,604
|
$ 11,616
|
$
4,560,422
|
$
64,604
|
||||
Investment
securities available for sale
|
18,362
|
28,397
|
1,878,741
|
6,117
|
||||
Loans,
net of discount
|
92,467
|
100,632
|
26,084
|
76,437
|
||||
Other
real estate owned
|
1,197
|
4,946
|
-
|
10,056
|
||||
Other
intangibles
|
2,095
|
-
|
14,327
|
-
|
||||
FDIC
indemnification asset
|
65,565
|
-
|
-
|
28,614
|
||||
Other
assets
|
921
|
721
|
7,498
|
3,539
|
||||
Total
assets
|
$
217,211
|
$ 146,312
|
$
6,487,072
|
$
189,367
|
||||
LIABILITIES
|
||||||||
Deposits
|
$
216,537
|
$ 135,337
|
$
6,476,456
|
$
163,660
|
||||
Other
borrowings
|
-
|
-
|
-
|
7,031
|
||||
Accrued
expenses and other liabilities
|
674
|
753
|
10,616
|
351
|
||||
Total
liabilities
|
$
217,211
|
$ 136,090
|
$
6,487,072
|
$
171,042
|
||||
Net
gain recorded on acquisition
|
$
-
|
$ 10,222
|
$
-
|
$
18,325
|
Years
Ended December 31,
|
|||
2009
(1)
|
2008
|
2007
|
|
Interest
income
|
$ -
|
$
-
|
$
-
|
Interest
expense
|
-
|
-
|
-
|
Net
interest income
|
-
|
-
|
-
|
Provision
for loan losses
|
-
|
-
|
-
|
Net
interest income after provision for loans losses
|
-
|
-
|
-
|
Other
income
|
9,914
|
18,072
|
16,376
|
Other
expenses
|
9,535
|
17,397
|
15,330
|
Income
before income taxes
|
379
|
675
|
1,046
|
Applicable
income taxes
|
148
|
236
|
366
|
Operating
income from discontinued operations
|
231
|
439
|
680
|
Gain
on sale of discontinued operations, net of tax
|
6,222
|
-
|
-
|
$ 6,453
|
$
439
|
$
680
|
(1)
|
Represents
results of operations through the date of sale, August 10,
2009.
|
Year
Ended
December
31,
|
|
2007
(1)
|
|
Interest
income
|
$
21,946
|
Interest
expense
|
10,216
|
Net
interest income
|
11,730
|
Provision
for loan losses
|
1,185
|
Net
interest income after provision for loans losses
|
10,545
|
Other
income
|
999
|
Other
expenses
|
7,554
|
Income
before income taxes
|
3,990
|
Applicable
income taxes
|
998
|
Operating
income from discontinued operations
|
2,992
|
Gain
on sale of discontinued operations, net of tax
|
28,846
|
$ 31,838
|
(1)
|
Represents
results of operations through the date of sale, November 28,
2007.
|
Gross
|
Gross
|
|||||||
Amortized
|
Unrealized
|
Unrealized
|
Fair
|
|||||
Available
for sale
|
Cost
|
Gains
|
Losses
|
Value
|
||||
December
31, 2009:
|
||||||||
Government
sponsored agencies
|
$ 69,120
|
$ 1,122
|
$
(3)
|
$ 70,239
|
||||
States
and political subdivisions
|
366,845
|
14,369
|
(980)
|
380,234
|
||||
Residential
mortgage-backed securities
|
2,382,495
|
12,595
|
(18,039)
|
2,377,051
|
||||
Corporate
bonds
|
11,400
|
-
|
(5)
|
11,395
|
||||
Equity
securities
|
4,280
|
34
|
-
|
4,314
|
||||
Totals
|
$ 2,834,140
|
$ 28,120
|
$ (19,027)
|
$ 2,843,233
|
||||
December
31, 2008:
|
||||||||
Government
sponsored agencies
|
$ 171,385
|
$ 7,988
|
$ -
|
$ 179,373
|
||||
States
and political subdivisions
|
417,608
|
12,585
|
(2,194)
|
427,999
|
||||
Residential
mortgage-backed securities
|
682,679
|
8,597
|
(991)
|
690,285
|
||||
Corporate
bonds
|
34,546
|
34
|
(15)
|
34,565
|
||||
Equity
securities
|
3,595
|
11
|
-
|
3,606
|
||||
Debt
securities issued by foreign governments
|
301
|
1
|
-
|
302
|
||||
Totals
|
$ 1,310,114
|
$ 29,216
|
$
(3,200)
|
$ 1,336,130
|
Less
Than 12 Months
|
12
Months or More
|
Total
|
||||||||||
Fair
|
Unrealized
|
Fair
|
Unrealized
|
Fair
|
Unrealized
|
|||||||
Value
|
Losses
|
Value
|
Losses
|
Value
|
Losses
|
|||||||
Government
sponsored agencies
|
$ 5,837
|
$ (3)
|
$
-
|
$
-
|
$
5,837
|
$
(3)
|
||||||
States
and political subdivisions
|
27,801
|
(620)
|
4,887
|
(360)
|
32,688
|
(980)
|
||||||
Residential
mortgage-backed securities
|
1,379,716
|
(18,031)
|
642
|
(8)
|
1,380,358
|
(18,039)
|
||||||
Corporate
bonds
|
5,032
|
(5)
|
-
|
-
|
5,032
|
(5)
|
||||||
Totals
|
$ 1,418,386
|
$ (18,659)
|
$
5,529
|
$
(368)
|
$
1,423,915
|
$
(19,027)
|
||||||
Less
Than 12 Months
|
12
Months or More
|
Total
|
||||||||||
Fair
|
Unrealized
|
Fair
|
Unrealized
|
Fair
|
Unrealized
|
|||||||
Value
|
Losses
|
Value
|
Losses
|
Value
|
Losses
|
|||||||
States
and political subdivisions
|
$
57,096
|
$
(1,970)
|
$
4,179
|
$
(224)
|
$
61,275
|
$
(2,194)
|
||||||
Residential
mortgage-backed securities
|
141,786
|
(958)
|
5,276
|
(33)
|
147,062
|
(991)
|
||||||
Corporate
bonds
|
15,045
|
(15)
|
-
|
-
|
15,045
|
(15)
|
||||||
Totals
|
$
213,927
|
$
(2,943)
|
$
9,455
|
$
(257)
|
$
223,382
|
$
(3,200)
|
||||||
For
the Years Ended December 31,
|
||||||
2009
|
2008
|
2007
|
||||
Realized
gains
|
$ 15,698
|
$ 1,420
|
$ 962
|
|||
Realized
losses
|
(1,669)
|
(290)
|
(4,706)
|
|||
Net
gains (losses)
|
$ 14,029
|
$ 1,130
|
$ (3,744)
|
Amortized
|
Fair
|
|||
(In
thousands)
|
Cost
|
Value
|
||
Due
in one year or less
|
$ 52,582
|
$ 53,053
|
||
Due
after one year through five years
|
80,691
|
84,969
|
||
Due
after five years through ten years
|
261,227
|
270,167
|
||
Due
after ten years
|
52,865
|
53,679
|
||
Equity
securities
|
4,280
|
4,314
|
||
Residential
mortgage-backed securities
|
2,382,495
|
2,377,051
|
||
Totals
|
$ 2,834,140
|
$ 2,843,233
|
December
31,
|
||||
2009
|
2008
|
|||
Commercial
loans
|
$ 1,387,476
|
$ 1,522,380
|
||
Commercial
loans collateralized by assignment of lease payments
|
953,452
|
649,918
|
||
Commercial
real estate
|
2,472,520
|
2,353,261
|
||
Residential
real estate
|
291,022
|
295,336
|
||
Construction
real estate
|
594,482
|
757,900
|
||
Indirect
vehicle
|
180,267
|
189,227
|
||
Home
equity
|
405,439
|
401,029
|
||
Consumer
loans
|
66,293
|
59,512
|
||
Gross
loans, excluding covered loans
|
6,350,951
|
6,228,563
|
||
Covered
loans
|
173,596
|
-
|
||
Gross
loans(1)
|
6,524,547
|
6,228,563
|
||
Allowance
for loan losses
|
(177,072)
|
(144,001)
|
||
Loans,
net
|
$ 6,347,475
|
$ 6,084,562
|
(1)
|
Gross
loan balances at December 31, 2009 and 2008 are net of unearned income,
including net deferred loan fees of $4.6 million, and $4.5 million
respectively.
|
December
31,
|
||||||
2009
|
2008
|
2007
|
||||
Loans
for which there were related allowance for loan losses
|
$ 251,623
|
$ 143,423
|
$ 18,398
|
|||
Other
impaired loans
|
-
|
-
|
564
|
|||
Total
impaired loans
|
$ 251,623
|
$ 143,423
|
$ 18,962
|
|||
Average
monthly balance of impaired loans
|
$ 233,741
|
$ 76,942
|
$ 16,208
|
|||
Related
allowance for loan losses
|
45,966
|
52,112
|
5,960
|
|||
Interest
income recognized on a cash basis
|
185
|
74
|
429
|
Year
Ended December 31,
|
||||||
2009
|
2008
|
2007
|
||||
Balance
at beginning of year
|
$
144,001
|
$ 65,103
|
$ 58,983
|
|||
Provision
for loan losses
|
231,800
|
125,721
|
19,313
|
|||
Charge-offs:
|
||||||
Commercial
loans
|
(46,113)
|
(13,653)
|
(7,072)
|
|||
Commercial
loans collateralized by assignment of lease payments
|
(5,407)
|
(1,258)
|
(515)
|
|||
Commercial
real estate
|
(38,842)
|
(14,872)
|
(3,471)
|
|||
Residential
real estate
|
(1,476)
|
(550)
|
(1,075)
|
|||
Construction
real estate
|
(103,789)
|
(14,940)
|
(2,294)
|
|||
Indirect
vehicles
|
(4,085)
|
(2,109)
|
(1,193)
|
|||
Home
equity
|
(3,443)
|
(1,801)
|
(194)
|
|||
Consumer
loans
|
(1,124)
|
(642)
|
(492)
|
|||
Total
charge-offs
|
(204,279)
|
(49,825)
|
(16,306)
|
|||
Recoveries:
|
||||||
Commercial
loans
|
1,491
|
891
|
1,265
|
|||
Commercial
loans collateralized by assignment of lease payments
|
-
|
67
|
979
|
|||
Commercial
real estate
|
40
|
266
|
37
|
|||
Residential
real estate
|
44
|
29
|
20
|
|||
Construction
real estate
|
2,957
|
951
|
38
|
|||
Indirect
vehicles
|
757
|
625
|
389
|
|||
Home
equity
|
53
|
132
|
344
|
|||
Consumer
loans
|
208
|
41
|
41
|
|||
Total
recoveries
|
5,550
|
3,002
|
3,113
|
|||
Net
charge-offs
|
(198,729)
|
(46,823)
|
(13,193)
|
|||
Balance
at December 31,
|
$
177,072
|
$
144,001
|
$ 65,103
|
Balance,
beginning of year
|
$ 10,614
|
|
Additions
|
929
|
|
Principal
payments and other reductions
|
(1,007)
|
|
Balance,
end of year
|
$ 10,536
|
Heritage
|
Benchmark
|
||||
Purchased
Credit-Impaired Loans
|
Purchased
Non-Credit-Impaired Loans
|
Purchased
Credit-Impaired Loans
|
Purchased
Non-Credit-Impaired Loans
|
Total
|
|
Commercial
related loans
|
$ 44,038
|
$ 15,906
|
$ 19,843
|
$ 42,630
|
$ 122,417
|
Other
loans
|
2,588
|
37,069
|
477
|
11,045
|
51,179
|
Total
covered loans
|
$ 46,626
|
$ 52,975
|
$ 20,320
|
$ 53,675
|
$ 173,596
|
Estimated
reimbursable amounts from the
|
|||||
FDIC
under the loss-share agreement
|
$ 9,490
|
$ 4,108
|
$ 13,099
|
$ 15,515
|
$ 42,212
|
Heritage
|
InBank
|
Corus
|
Benchmark
|
|||||||||
February
27, 2009
|
September
4, 2009
|
September
11, 2009
|
December
4, 2009
|
|||||||||
Purchased
Credit-Impaired Loans
|
Purchased
Non-Credit-Impaired Loans
|
Purchased
Credit-Impaired Loans
|
Purchased
Non-Credit-Impaired Loans
|
Purchased
Credit-Impaired Loans
|
Purchased
Non-Credit-Impaired Loans
|
Purchased
Credit-Impaired Loans
|
Purchased
Non-Credit-Impaired Loans
|
|||||
Contractually
required payments
|
||||||||||||
Commercial
related loans
|
$ 85,341
|
$ 37,871
|
$ 95,786
|
$ 20,785
|
$ 1,946
|
$ 27,278
|
$ 42,339
|
$ 65,819
|
||||
Other
loans
|
7,842
|
61,435
|
12,261
|
32,139
|
-
|
-
|
1,031
|
19,229
|
||||
Total
|
$ 93,183
|
$ 99,306
|
$ 108,047
|
$ 52,924
|
$ 1,946
|
$ 27,278
|
$ 43,370
|
$ 85,048
|
||||
Cash
flows expected to be collected
|
||||||||||||
Commercial
related loans
|
$ 42,680
|
$ 24,334
|
$ 51,325
|
$ 18,669
|
$ 1,252
|
$ 26,636
|
$ 23,733
|
$ 48,381
|
||||
Other
loans
|
3,448
|
42,616
|
10,009
|
28,915
|
-
|
-
|
584
|
14,515
|
||||
Total
|
$ 46,128
|
$ 66,950
|
$ 61,334
|
$ 47,584
|
$ 1,252
|
$ 26,636
|
$ 24,317
|
$ 62,896
|
||||
Fair
value of loans acquired
|
||||||||||||
Commercial
related loans
|
$ 42,586
|
$ 19,273
|
$ 46,983
|
$ 17,511
|
$ 1,252
|
$ 24,832
|
$ 19,924
|
$ 44,007
|
||||
Other
loans
|
3,405
|
27,203
|
9,450
|
26,688
|
-
|
-
|
546
|
11,960
|
||||
Total
|
$ 45,991
|
$ 46,476
|
$ 56,433
|
$ 44,199
|
$ 1,252
|
$ 24,832
|
$ 20,470
|
$ 55,967
|
December
31,
|
|||||
2009
|
2008
|
||||
Direct
finance leases:
|
|||||
Minimum
lease payments
|
$ 69,112
|
$ 61,239
|
|||
Estimated
unguaranteed residual values
|
7,802
|
7,093
|
|||
Less:
unearned income
|
(7,684)
|
(7,484)
|
|||
Direct
finance leases (1)
|
$ 69,230
|
$ 60,848
|
|||
Leveraged
leases:
|
|||||
Minimum
lease payments
|
$ 20,770
|
$ 30,150
|
|||
Estimated
unguaranteed residual values
|
4,532
|
4,914
|
|||
Less:
unearned income
|
(1,950)
|
(2,804)
|
|||
Less:
related non-recourse debt
|
(20,717)
|
(28,437)
|
|||
Leveraged
leases (1)
|
$ 2,635
|
$ 3,823
|
|||
Operating
leases:
|
|||||
Equipment,
at cost
|
$ 235,092
|
$ 196,068
|
|||
Less
accumulated depreciation
|
(90,126)
|
(71,034)
|
|||
Lease
investments, net
|
$ 144,966
|
$ 125,034
|
(1)
|
Direct
finance and leveraged leases are included as commercial loans
collateralized by assignment of lease payments for financial statement
purposes.
|
Direct
|
||||||||
Finance
|
Leveraged
|
Operating
|
||||||
Year
|
Leases
|
Leases
|
Leases
|
Total
|
||||
2010
|
$ 31,643
|
$ 13,668
|
$ 45,517
|
$ 90,828
|
||||
2011
|
20,769
|
5,562
|
31,923
|
58,254
|
||||
2012
|
10,820
|
1,353
|
17,201
|
29,374
|
||||
2013
|
4,674
|
187
|
8,431
|
13,292
|
||||
2014
|
1,201
|
-
|
2,461
|
3,662
|
||||
2015
& Thereafter
|
5
|
-
|
491
|
496
|
||||
$ 69,112
|
$ 20,770
|
$ 106,024
|
$ 195,906
|
Years
Ended December 31,
|
||||||
2009
|
2008
|
2007
|
||||
Rental
income on operating leases
|
$ 51,809
|
$ 44,210
|
$ 35,160
|
|||
LaSalle
Business Solutions revenue
|
47,785
|
32,302
|
46,813
|
|||
Gain
on sale of leased equipment
|
1,789
|
1,921
|
4,149
|
|||
Income
on lease investments, gross
|
101,383
|
78,433
|
86,122
|
|||
Less:
|
||||||
Write
down of residual value of equipment
|
(1,371)
|
(512)
|
(1,617)
|
|||
LaSalle
Business Solutions cost of sales
|
(43,217)
|
(28,953)
|
(42,561)
|
|||
Depreciation
on operating leases
|
(38,267)
|
(31,995)
|
(26,097)
|
|||
Income
from lease investments, net
|
$ 18,528
|
$ 16,973
|
$ 15,847
|
Residual
Values
|
||||||||
End
of initial lease term
|
Direct
|
|||||||
Finance
|
Leveraged
|
Operating
|
||||||
December
31,
|
Leases
|
Leases
|
Leases
|
Total
|
||||
2010
|
$ 1,678
|
$ 2,057
|
$ 8,957
|
$ 12,692
|
||||
2011
|
2,472
|
1,263
|
11,213
|
14,948
|
||||
2012
|
1,981
|
1,074
|
10,044
|
13,099
|
||||
2013
|
601
|
138
|
4,242
|
4,981
|
||||
2014
|
1,037
|
-
|
5,372
|
6,409
|
||||
2015
& Thereafter
|
33
|
-
|
2,843
|
2,876
|
||||
$ 7,802
|
$ 4,532
|
$ 42,671
|
$ 55,005
|
December
31,
|
||||
2009
|
2008
|
|||
Land
and land improvements
|
$
55,476
|
$
55,941
|
||
Buildings
|
78,087
|
80,582
|
||
Furniture
and equipment
|
69,701
|
62,019
|
||
Buildings
and leasehold improvements
|
46,197
|
46,055
|
||
249,461
|
244,597
|
|||
Accumulated
depreciation
|
(69,820)
|
(58,123)
|
||
Premises
and equipment, net
|
$ 179,641
|
$
186,474
|
December
31,
|
||
2009
|
2008
|
|
Balance
at beginning of period
|
$ 387,069
|
$ 379,047
|
Goodwill
from business combinations (1)
|
-
|
8,022
|
Balance
at end of period
|
$ 387,069
|
$ 387,069
|
(1)
|
See
Note 2 for additional
information.
|
December
31,
|
||
2009
|
2008
|
|
Balance
at beginning of period
|
$ 25,776
|
$ 25,352
|
Amortization
expense
|
(4,491)
|
(3,554)
|
Other
intangibles from business combinations (1)
|
16,423
|
3,978
|
Balance
at end of period
|
$ 37,708
|
$ 25,776
|
Gross
carrying amount
|
$ 67,895
|
$ 51,472
|
Accumulated
amortization
|
(30,187)
|
(25,696)
|
Net
book value
|
$ 37,708
|
$ 25,776
|
(1)
|
See
Note 2 for additional
information.
|
Year
ending December 31,
|
Amount
|
|
2010
|
$
6,033
|
|
2011
|
5,212
|
|
2012
|
4,589
|
|
2013
|
4,152
|
|
2014
|
3,245
|
|
Thereafter
|
14,477
|
|
$
37,708
|
December
31,
|
||||
2009
|
2008
|
|||
Demand
deposits, noninterest bearing
|
$ 1,552,185
|
$
960,117
|
||
NOW
and money market accounts
|
2,775,468
|
1,465,436
|
||
Savings
deposits
|
583,783
|
367,684
|
||
Time
certificates, $100,000 or more
|
1,885,460
|
2,091,067
|
||
Other
time certificates
|
1,886,380
|
1,611,267
|
||
Total
|
$ 8,683,276
|
$ 6,495,571
|
2010
|
$ 3,158,663
|
|
2011
|
267,495
|
|
2012
|
209,934
|
|
2013
|
87,260
|
|
2014
|
35,578
|
|
Thereafter
|
12,910
|
|
$ 3,771,840
|
December
31,
|
||||
2009
|
2008
|
|||
Weighted
Average
|
Amount
|
Weighted
Average
|
Amount
|
|
Cost
|
Cost
|
|||
Federal
funds purchased
|
-
|
$ -
|
0.68%
|
$ 5,000
|
Federal
Reserve term auction funds
|
-
|
-
|
0.42%
|
100,000
|
Customer
repurchase agreements
|
0.50%
|
223,917
|
0.48%
|
282,832
|
Federal
Home Loan Bank advances
|
3.35%
|
100,000
|
2.46%
|
100,787
|
1.38%
|
$ 323,917
|
0.88%
|
$ 488,619
|
|
Amount
|
|
Year
ending December 31,
|
|
2010
|
$ 47,350
|
2011
|
44,884
|
2012
|
36,626
|
2013
|
8,649
|
2014
|
381
|
Thereafter
|
193,459
|
$ 331,349
|
Coal
City
|
MB
Financial
|
MB
Financial (3)
|
MB
Financial (4)
|
|
Capital
Trust I
|
Capital
Trust II
|
Capital
Trust III
|
Capital
Trust IV
|
|
Junior
Subordinated Notes:
|
||||
Principal
balance
|
$ 25,774
|
$ 36,083
|
$ 10,310
|
$ 20,619
|
Annual
interest rate
|
3-mo
LIBOR + 1.80%
|
3-mo
LIBOR + 1.40%
|
3-mo
LIBOR + 1.50%
|
3-mo
LIBOR + 1.52%
|
Stated
maturity date
|
September
1, 2028
|
September
15, 2035
|
September
23, 2036
|
September
15, 2036
|
Call
date
|
September
1, 2008
|
September
15, 2010
|
September
23, 2011
|
September
15, 2011
|
Trust
Preferred Securities:
|
||||
Face
value
|
$ 25,000
|
$ 35,000
|
$ 10,000
|
$ 20,000
|
Annual
distribution rate
|
3-mo
LIBOR + 1.80%
|
3-mo
LIBOR + 1.40%
|
3-mo
LIBOR + 1.50%
|
3-mo
LIBOR + 1.52%
|
Issuance
date
|
July
1998
|
August
2005
|
July
2006
|
August
2006
|
Distribution
dates (1)
|
Quarterly
|
Quarterly
|
Quarterly
|
Quarterly
|
MB
Financial (4)
|
MB
Financial
|
FOBB
(2) (3)
|
FOBB
(2)
|
|
Capital
Trust V
|
Capital
Trust VI
|
Capital
Trust I
|
Capital
Trust III
|
|
Junior
Subordinated Notes:
|
||||
Principal
balance
|
$ 30,928
|
$ 23,196
|
$ 6,186
|
$ 5,155
|
Annual
interest rate
|
3-mo
LIBOR + 1.30%
|
3-mo
LIBOR + 1.30%
|
10.60%
|
3-mo
LIBOR + 2.80%
|
Stated
maturity date
|
December
15, 2037
|
October
30, 2037
|
September
7, 2030
|
January
23, 2034
|
Call
date
|
March
15, 2008
|
October
30, 2012
|
September
7, 2010
|
January
23, 2009
|
Trust
Preferred Securities:
|
||||
Face
value
|
$ 30,000
|
$ 22,500
|
$ 6,000
|
$ 5,000
|
Annual
distribution rate
|
3-mo
LIBOR + 1.30%
|
3-mo
LIBOR + 1.30%
|
10.60%
|
3-mo
LIBOR + 2.80%
|
Issuance
date
|
September
2007
|
October
2007
|
September
2000
|
December
2003
|
Distribution
dates (1)
|
Quarterly
|
Quarterly
|
Semi-annual
|
Quarterly
|
(1)
|
All
distributions are cumulative and paid in
cash.
|
(2)
|
Amount
does not include purchase accounting adjustments totaling a premium of
$426 thousand associated with FOBB Capital Trust I and
III.
|
(3)
|
Callable
at a premium through 2020.
|
(4)
|
Callable
at a premium through 2011.
|
Gross
|
Sublease
|
Net
|
||||
Year
|
Rents
|
Rents
|
Rents
|
|||
2010
|
$ 4,504
|
$
717
|
$ 3,787
|
|||
2011
|
4,391
|
743
|
3,648
|
|||
2012
|
4,001
|
747
|
3,254
|
|||
2013
|
3,623
|
549
|
3,074
|
|||
2014
|
3,082
|
566
|
2,516
|
|||
Thereafter
|
20,618
|
248
|
20,370
|
|||
$ 40,219
|
$ 3,570
|
$ 36,649
|
December
31,
|
||||
2009
|
2008
|
|||
Deferred
tax assets:
|
||||
Allowance
for loan losses
|
$ 69,058
|
$ 56,160
|
||
Deferred
compensation
|
5,553
|
5,552
|
||
Other
real estate owned
|
1,690
|
-
|
||
Merger
and non-compete accrual
|
462
|
544
|
||
Securities
|
132
|
449
|
||
Stock
options, restricted stock, director stock units, and restricted stock
units
|
9,054
|
7,827
|
||
Federal
net operating loss carryforwards
|
1,848
|
1,353
|
||
State
net operating loss carryforwards
|
20,707
|
17,551
|
||
Other
items
|
6,774
|
1,128
|
||
Total
deferred tax asset
|
115,278
|
90,564
|
||
Valuation
allowance
|
-
|
-
|
||
Total
deferred tax asset, net of valuation allowance
|
115,278
|
90,564
|
||
Deferred
tax liabilities:
|
||||
Securities
discount accretion
|
(106)
|
(603)
|
||
Deferred
gain on FDIC assisted transactions
|
(15,142)
|
-
|
||
Loans
|
(5,257)
|
(5,486)
|
||
Lease
investments
|
(1,522)
|
(1,175)
|
||
Premises
and equipment
|
(55,620)
|
(42,118)
|
||
Core
deposit intangible
|
(7,172)
|
(8,935)
|
||
Federal
Home Loan Bank stock dividends
|
(4,014)
|
(4,014)
|
||
Other
items
|
(3,840)
|
(103)
|
||
Total
deferred tax liabilities
|
(92,673)
|
(62,434)
|
||
Net
deferred tax asset
|
22,605
|
28,130
|
||
Net
unrealized holding gain on securities available for sale
|
(3,547)
|
(9,106)
|
||
Net
deferred tax asset
|
$ 19,058
|
$ 19,024
|
Years
Ended December 31,
|
||||||
2009
|
2008
|
2007
|
||||
Current
(benefit) expense:
|
||||||
Federal
|
$ (47,247)
|
$ (1,196)
|
$ 24,153
|
|||
State
|
(3,543)
|
216
|
200
|
|||
(50,790)
|
(980)
|
24,353
|
||||
Deferred
(benefit) expense
|
5,525
|
(22,575)
|
(683)
|
|||
$ (45,265)
|
$ (23,555)
|
$ 23,670
|
Years
Ended December 31,
|
||||||
2009
|
2008
|
2007
|
||||
Federal
income tax (benefit) expense at expected statutory rate
|
$ (27,245)
|
$ (2,741)
|
$ 29,755
|
|||
Increase
(decrease) due to:
|
||||||
Tax
exempt income, net
|
(6,055)
|
(5,521)
|
(4,355)
|
|||
Nonincludable
increase in cash surrender value of life insurance
|
(847)
|
(1,855)
|
(1,740)
|
|||
Removal
of valuation reserve on state net operating loss
carryforwards
|
-
|
(10,100)
|
-
|
|||
Adjustment
of tax contingency reserves
|
(7,723)
|
4,232
|
-
|
|||
State
tax, net of federal benefit
|
(2,477)
|
(7,003)
|
130
|
|||
Other
items, net
|
(918)
|
(567)
|
(120)
|
|||
Income
tax (benefit) expense
|
$ (45,265)
|
$ (23,555)
|
$ 23,670
|
Unrecognized
Tax Benefit Without Interest
|
Interest
on unrecognized Tax Benefit
|
Total
Unrecognized Tax Benefit Including Interest
|
|
Balance
at January 1, 2009
|
$ 7,050
|
$ 964
|
$ 8,014
|
Increases
for tax positions of prior years
|
93
|
187
|
280
|
Benefits
recognized
|
(6,902)
|
(1,101)
|
(8,003)
|
Balance
at December 31, 2009
|
$ 241
|
$ 50
|
$
291
|
Contractual
Amount
|
||
2009
|
2008
|
|
Commitments
to extend credit:
|
||
Home
equity lines
|
$
330,856
|
$
376,854
|
Other
commitments
|
1,135,137
|
1,261,276
|
Letters
of credit:
|
||
Standby
|
136,250
|
119,504
|
Commercial
|
1,233
|
55,269
|
To
Be Well
|
|||||||||
Capitalized
Under
|
|||||||||
For
Capital
|
Prompt
Corrective
|
||||||||
Actual
|
Adequacy
Purposes
|
Action
Provisions
|
|||||||
Amount
|
Ratio
|
Amount
|
Ratio
|
Amount
|
Ratio
|
||||
As
of December 31, 2009
|
|||||||||
Total
capital (to risk-weighted assets):
|
|||||||||
Consolidated
|
$ 1,130,496
|
15.45%
|
$ 585,205
|
8.00%
|
N/A
|
N/A
|
|||
MB
Financial Bank
|
965,507
|
13.25%
|
583,035
|
8.00%
|
$ 728,793
|
10.00%
|
|||
Tier
1 capital (to risk-weighted assets):
|
|||||||||
Consolidated
|
988,335
|
13.51%
|
292,603
|
4.00%
|
N/A
|
N/A
|
|||
MB
Financial Bank
|
823,346
|
11.30%
|
291,517
|
4.00%
|
437,276
|
6.00%
|
|||
Tier
1 capital (to average assets):
|
|||||||||
Consolidated
|
988,335
|
8.71%
|
453,939
|
4.00%
|
N/A
|
N/A
|
|||
MB
Financial Bank
|
823,346
|
7.27%
|
452,938
|
4.00%
|
566,172
|
5.00%
|
|||
As
of December 31, 2008
|
|||||||||
Total
capital (to risk-weighted assets):
|
|||||||||
Consolidated
|
$
936,027
|
14.08%
|
$ 531,968
|
8.00%
|
N/A
|
N/A
|
|||
MB
Financial Bank
|
759,845
|
11.46%
|
530,595
|
8.00%
|
$ 663,243
|
10.00%
|
|||
Tier
1 capital (to risk-weighted assets):
|
|||||||||
Consolidated
|
802,384
|
12.07%
|
265,984
|
4.00%
|
N/A
|
N/A
|
|||
MB
Financial Bank
|
626,185
|
9.44%
|
265,297
|
4.00%
|
397,946
|
6.00%
|
|||
Tier
1 capital (to average assets):
|
|||||||||
Consolidated
|
802,384
|
9.85%
|
325,872
|
4.00%
|
N/A
|
N/A
|
|||
MB
Financial Bank
|
626,185
|
7.70%
|
325,300
|
4.00%
|
406,625
|
5.00%
|
Total
|
Quoted
Prices
in
Active Markets
for
Identical Assets
(Level
1)
|
Significant
Other
Observable
Inputs
(Level
2)
|
Significant
Unobservable
Inputs
(Level
3)
|
|||
2009
|
||||||
Financial
assets
|
||||||
Securities
available for sale:
|
||||||
Government
sponsored agencies and enterprises
|
$ 70,239
|
$
-
|
$
70,239
|
$
-
|
||
States
and political subdivisions
|
380,234
|
5,157
|
375,077
|
-
|
||
Residential
mortgage-backed securities
|
2,377,051
|
105,828
|
2,269,691
|
1,532
|
||
Corporate
bonds
|
11,395
|
-
|
5,030
|
6,365
|
||
Equity
securities
|
4,314
|
4,314
|
-
|
-
|
||
Assets
held in trust for deferred compensation
|
5,785
|
5,785
|
-
|
-
|
||
Derivative
financial instruments
|
12,752
|
-
|
12,752
|
-
|
||
Financial
liabilities
|
||||||
Other
liabilities (1)
|
5,785
|
5,785
|
-
|
-
|
||
Derivative
financial instruments
|
12,092
|
-
|
12,092
|
-
|
||
2008
|
||||||
Financial
assets
|
||||||
Securities
available for sale:
|
||||||
Government
sponsored agencies and enterprises
|
$
179,373
|
$ -
|
$ 179,373
|
$ -
|
||
States
and political subdivisions
|
427,999
|
-
|
427,999
|
-
|
||
Residential
mortgage-backed securities
|
690,285
|
111,533
|
578,752
|
-
|
||
Corporate
bonds
|
34,565
|
14,030
|
18,905
|
1,630
|
||
Equity
securities
|
3,606
|
3,606
|
-
|
-
|
||
Debt
securities issued by foreign governments
|
302
|
-
|
302
|
-
|
||
Assets
held in trust for deferred compensation
|
5,383
|
5,383
|
-
|
-
|
||
Derivative
financial instruments
|
25,835
|
-
|
25,835
|
-
|
||
Financial
liabilities
|
||||||
Other
liabilities (1)
|
5,383
|
5,383
|
-
|
-
|
||
Derivative
financial instruments
|
24,169
|
-
|
24,169
|
-
|
||
(1)
Liabilities associated with assets held in trust for deferred
compensation
|
Year Ended
|
|||
(in
thousands)
|
December
31, 2009
|
December
31, 2008
|
|
Balance,
beginning of period
|
$ 1,630
|
$ -
|
|
Transfer
into Level 3
|
6,283
|
1,911
|
|
Net
unrealized losses
|
(16)
|
-
|
|
Impairment
charge
|
-
|
(281)
|
|
$ 7,897
|
$ 1,630
|
||
Total
|
Quoted
Prices
in
Active Markets
for
Identical Assets
(Level
1)
|
Significant
Other
Observable
Inputs
(Level
2)
|
Significant
Unobservable
Inputs
(Level
3)
|
|||
2009
|
||||||
Financial
assets:
|
||||||
Impaired
loans
|
$ 205,657
|
$ -
|
$ -
|
$ 205,657
|
||
Foreclosed
assets
|
55,470
|
-
|
-
|
55,470
|
||
Non-financial
long-lived assets
|
2,656
|
-
|
-
|
2,656
|
||
2008
|
||||||
Financial
assets:
|
||||||
Impaired
loans
|
$ 91,311
|
$ -
|
$
-
|
$ 91,311
|
||
Foreclosed
assets
|
4,366
|
-
|
-
|
4,366
|
December
31,
|
December
31,
|
|||||||
2009
|
2008
|
|||||||
Carrying
|
Carrying
|
|||||||
Amount
|
Fair
Value
|
Amount
|
Fair
Value
|
|||||
Financial
Assets:
|
||||||||
Cash
and due from banks
|
$ 136,763
|
$
136,763
|
$ 79,824
|
$ 79,824
|
||||
Interest
bearing deposits with banks
|
265,257
|
265,257
|
261,834
|
261,880
|
||||
Investment
securities available for sale
|
2,843,233
|
2,843,233
|
1,336,130
|
1,336,130
|
||||
Non-marketable
securities - FHLB and FRB stock
|
70,361
|
70,361
|
64,246
|
64,246
|
||||
Loans,
net
|
6,347,475
|
6,242,972
|
6,084,562
|
6,185,940
|
||||
Accrued
interest receivable
|
40,492
|
40,492
|
34,096
|
34,096
|
||||
Derivative
financial instruments
|
12,752
|
12,752
|
25,835
|
25,835
|
||||
Financial
Liabilities:
|
||||||||
Non-interest
bearing deposits
|
$ 1,552,185
|
$ 1,552,185
|
$ 960,117
|
$ 960,117
|
||||
Interest
bearing deposits
|
7,131,091
|
7,011,987
|
5,535,454
|
5,561,809
|
||||
Short-term
borrowings
|
323,917
|
313,209
|
488,619
|
476,899
|
||||
Long-term
borrowings
|
331,349
|
340,514
|
471,466
|
484,454
|
||||
Junior
subordinated notes issued to capital trusts
|
158,677
|
92,414
|
158,824
|
94,936
|
||||
Accrued
interest payable
|
11,651
|
11,651
|
21,289
|
21,289
|
||||
Derivative
financial instruments
|
12,092
|
12,092
|
24,169
|
24,169
|
||||
Off-balance-sheet
instruments:
|
||||||||
Loan
commitments and standby letters of credit
|
$ -
|
$
1,994
|
$
-
|
$ 3,455
|
Year
Ended December 31,
|
||||||
2009
|
2008
|
2007
|
||||
Total
cost of share-based payment plans during the year
|
$ 5,138
|
$ 4,911
|
$ 5,223
|
|||
Amount
of related income tax benefit recognized in income
|
$ 1,964
|
$ 1,663
|
$ 1,773
|
Weighted
|
Remaining
|
Aggregate
|
||||||
Average
|
Contractual
|
Intrinsic
|
||||||
Number
of
|
Exercise
|
Term
|
Value
|
|||||
Options
|
Price
|
(In
Years)
|
(in
thousands)
|
|||||
Options
outstanding as of January 1, 2009
|
3,241,278
|
$ 29.44
|
||||||
Granted
|
137,025
|
12.67
|
||||||
Exercised
|
(46,348)
|
9.46
|
||||||
Expired
or cancelled
|
(99,554)
|
30.44
|
||||||
Forfeited
|
(34,680)
|
32.18
|
||||||
Options
outstanding as of December 31, 2009
|
3,197,721
|
$ 28.95
|
5.67
|
$
1,885
|
||||
Options
exercisable as of December 31, 2009
|
1,482,596
|
$ 28.87
|
3.17
|
$
1,115
|
For
the Years Ended December 31,
|
|||||
2009
|
2008
|
2007
|
|||
Risk-free
interest rate
|
2.66%
|
3.61%
|
4.80%
|
||
Volatility
of Company's stock
|
35.91%
|
18.92%
|
16.84%
|
||
Expected
dividend yield
|
1.25%
|
2.95%
|
2.19%
|
||
Expected
life of options
|
5
years
|
6
years
|
6
years
|
||
Weighted
average fair value per option of options granted during the
year
|
$ 4.20
|
$ 3.84
|
$ 6.27
|
Weighted
Average
|
||||
Number
of Shares
|
Grant
Date Fair Value
|
|||
Shares
Outstanding at December 31, 2008
|
222,233
|
$ 29.29
|
||
Granted
|
357,590
|
10.55
|
||
Vested
|
(44,962)
|
34.39
|
||
Forfeited
|
(8,215)
|
25.62
|
||
Shares
Outstanding at December 31, 2009
|
526,646
|
$ 16.19
|
December
31, 2009
|
December
31, 2008
|
||||||||
Weighted
Average
|
|||||||||
Balance
Sheet
|
Notional
|
Estimated
|
Years
to
|
Receive
|
Pay
|
Notional
|
Estimated
|
||
Location
|
Amount
|
Fair
Value
|
Maturity
|
Rate
|
Rate
|
Amount
|
Fair
Value
|
||
Derivative
instruments designated as hedges of fair value:
|
|||||||||
Pay
fixed/receive variable swaps (1)
|
Other
liabilities
|
$ 10,112
|
$
581
|
3.5
|
2.36%
|
6.23%
|
$ 13,039
|
$ 1,022
|
|
Receive
fixed/pay variable swaps (2)
|
Other
assets
|
-
|
-
|
-
|
-
|
-
|
57,177
|
631
|
|
Non-hedging
derivative instruments (3)
|
|||||||||
Pay
fixed/receive variable swaps
|
Other
liabilities
|
255,643
|
(12,673)
|
6.4
|
2.20%
|
5.95%
|
203,040
|
(24,169)
|
|
Pay
variable/receive fixed swaps
|
Other
assets
|
265,643
|
12,752
|
6.2
|
5.88%
|
2.12%
|
204,863
|
24,182
|
|
Total
portfolio swaps
|
$ 531,398
|
$
660
|
6.2
|
4.04%
|
4.04%
|
$ 478,119
|
$ 1,666
|
||
(1)
Hedged fixed-rate commercial real estate loans
|
|||||||||
(2)
Hedges fixed-rate callable brokered deposits
|
|||||||||
(3)
These portfolio swaps are not designated as hedging instruments under ASC
Topic 815.
|
Location
of Gain or (Loss)
|
||||||||
Recognized
in Income on
|
Year
Ended
|
|||||||
Derivatives
|
December
31,
|
|||||||
2009
|
2008
|
2007
|
||||||
Interest
rate swaps
|
Other
income
|
$ 298
|
$ (294)
|
$ 306
|
Location
of Gain or (Loss)
|
||||||||
Recognized
in Income on
|
Year
Ended
|
|||||||
Derivatives
|
December
31,
|
|||||||
2009
|
2008
|
2007
|
||||||
Interest
rate swaps
|
Other
income
|
$
65
|
$
105
|
$ (218)
|
Balance
Sheets
|
||||
(In
thousands)
|
||||
December
31,
|
||||
2009
|
2008
|
|||
Assets
|
||||
Cash
|
$ 142,901
|
$ 161,479
|
||
Investments
in subsidiaries
|
1,240,241
|
1,044,070
|
||
Other
assets
|
30,984
|
27,519
|
||
Total
assets
|
$ 1,414,126
|
$ 1,233,068
|
||
Liabilities
and Stockholders' Equity
|
||||
Junior
subordinated notes issued to capital trusts
|
$ 158,677
|
$ 158,823
|
||
Other
liabilities
|
4,269
|
5,421
|
||
Stockholders'
equity
|
1,251,180
|
1,068,824
|
||
Total
liabilities and stockholders' equity
|
$ 1,414,126
|
$ 1,233,068
|
Statements
of Income
|
||||||
(In
thousands)
|
||||||
Years
Ended December 31,
|
||||||
2009
|
2008
|
2007
|
||||
Dividends
from continuing subsidiaries
|
$ -
|
$ 30,000
|
$ 88,000
|
|||
Dividends
from discontinued subsidiary
|
-
|
-
|
6,500
|
|||
Interest
and other income
|
1,805
|
(985)
|
757
|
|||
Interest
and other expense
|
(7,816)
|
(8,278)
|
(18,201)
|
|||
Income
(loss) before income tax benefit and equity in undistributed net income of
subsidiaries
|
(6,011)
|
20,737
|
77,056
|
|||
Income
tax benefit
|
(2,321)
|
(3,370)
|
(6,105)
|
|||
Income
(loss) before equity in undistributed net income of
subsidiaries
|
(3,690)
|
24,107
|
83,161
|
|||
Equity
in undistributed net income (loss) of continuing
subsidiaries
|
(28,889)
|
(8,382)
|
(15,316)
|
|||
Equity
in undistributed net income from discontinued operations
|
6,453
|
439
|
26,018
|
|||
Net
(loss) income
|
(26,126)
|
16,164
|
93,863
|
|||
Dividends
on preferred shares
|
10,298
|
789
|
-
|
|||
Net
income (loss) available to common shareholders
|
$ (36,424)
|
$ 15,375
|
$ 93,863
|
Statements
of Cash Flows
|
||||||
(In
thousands)
|
||||||
Years
Ended December 31,
|
||||||
2009
|
2008
|
2007
|
||||
Cash
Flows From Operating Activities
|
||||||
Net
(loss) income
|
$ (26,126)
|
$ 16,164
|
$
93,863
|
|||
Adjustments
to reconcile net income to net cash provided by operating
activities:
|
||||||
Amortization
of restricted stock awards
|
2,684
|
2,228
|
2,113
|
|||
Compensation
expense for stock option grants
|
2,454
|
651
|
3,111
|
|||
Equity
in undistributed net income of continuing subsidiaries
|
28,889
|
8,382
|
15,316
|
|||
Equity
in undistributed net income from discontinued operations
|
(6,453)
|
(439)
|
(26,018)
|
|||
Change
in other assets and other liabilities
|
(11,460)
|
(30,963)
|
(7,845)
|
|||
Net
cash (used in) provided by operating activities
|
(10,012)
|
(3,977)
|
80,540
|
|||
Cash
Flows From Investing Activities
|
||||||
Investments
in and advances to subsidiaries
|
(225,000)
|
(50,000)
|
(5,000)
|
|||
Proceeds
from the sales of other assets
|
-
|
-
|
1,630
|
|||
Net
(increase) decrease in loans
|
-
|
7,500
|
(7,500)
|
|||
Cash
proceeds received from sale of subsidiary
|
-
|
-
|
76,148
|
|||
Net
cash (used in) provided by investing activities
|
(225,000)
|
(42,500)
|
65,278
|
|||
Cash
Flows From Financing Activities
|
||||||
Treasury
stock transactions, net
|
23,961
|
(1,348)
|
(76,703)
|
|||
Stock
options exercised
|
1,269
|
4,585
|
3,789
|
|||
Excess
tax benefits from share-based payment arrangements
|
28
|
2,032
|
1,828
|
|||
Dividends
paid on common stock
|
(5,449)
|
(25,090)
|
(25,956)
|
|||
Dividends
paid on preferred stock
|
(9,256)
|
-
|
-
|
|||
Principal
paid long-term debt
|
(500)
|
-
|
-
|
|||
Issuance
of preferred stock
|
-
|
192,944
|
-
|
|||
Issuance
of common stock warrant
|
-
|
3,056
|
-
|
|||
Issuance
of common stock
|
206,381
|
-
|
-
|
|||
Proceeds
from junior subordinated notes issued to capital trusts
|
-
|
-
|
52,500
|
|||
Principal
paid on junior subordinated notes issued to capital trusts
|
-
|
-
|
(71,800)
|
|||
Net
cash provided by (used in) financing activities
|
216,434
|
176,179
|
(116,342)
|
|||
Net
increase (decrease) in cash
|
(18,578)
|
129,702
|
29,476
|
|||
Cash:
|
||||||
Beginning
of year
|
161,479
|
31,777
|
2,301
|
|||
End
of year
|
$
142,901
|
$ 161,479
|
$
31,777
|
Equity Compensation Plan Information | ||||||
Plan Category |
Number of
Shares
to be
Issued upon
Exercise of
Outstanding
Options,
warrants
and
rights (1)
|
Weighted
Average
Exercise
Price
of
Outstanding Options,
warrants and
rights (1)
|
Number of
Shares Remaining Available for Future Issuance
Under Equity
Compensation
Plans
(Excluding Shares
Reflected in
the
first
column) (2)
|
|||
Equity compensation plans approved by stockholders........................................................................ | 3,197,721 | $ 28.95 | 806,353 | |||
Equity compenstion plans not approved by stockholders................................................................... | N/A | N/A | N/A | |||
Total............................................................................................................................................................... | 3,197,721 | $ 28.95 | 806,353 | |||
(1)
|
Includes
21,158 shares underlying stock options that we assumed in the First
SecurityFed acquisition, and 106,614 shares underlying stock options, and
6,621 shares underlying director stock units that we assumed in the FOBB
acquisition. Since the restricted stock units and the director
stock units do not have an exercise price and are settled only for shares
of our common stock on a one-for-one basis, these units are not relevant
for purposes of computing the weighted average exercise
price.
|
(2)
|
Includes
447,812 shares remaining available for future issuance under our Amended
and Restated Omnibus Incentive Plan which could be utilized for
awards to plan participants in the form of restricted stock, restricted
stock units, performance shares, performance units or other stock-based
awards.
|
(a)(1)
|
Financial
Statements: See Part II--Item 8. Financial Statements
and Supplementary Data.
|
(a)(2)
|
Financial
Statement Schedules: All financial statement schedules have been omitted
as the information is not required under the related instructions or is
not applicable.
|
(a)(3)
|
Exhibits:
See Exhibit Index.
|
(b)
|
Exhibits:
See Exhibit Index.
|
Signatures
|
Title
|
|||
/s/Mitchell Feiger
|
Director,
President and Chief Executive Officer
|
|||
Mitchell
Feiger
|
(Principal
Executive Officer), March 4, 2010
|
|||
/s/Jill E. York
|
Vice
President and Chief Financial Officer
|
|||
Jill
E. York
|
(Principal
Financial Officer and Principal Accounting Officer), March 4,
2010
|
|||
/s/Thomas H. Harvey*
|
Director
|
) March
4, 2010
|
||
Thomas
H. Harvey
|
||||
/s/David P. Bolger*
|
Director
|
) March
4, 2010
|
||
David
P. Bolger
|
||||
/s/Robert S. Engleman, Jr.*
|
Director
|
) March
4, 2010
|
||
Robert
S. Engleman, Jr.
|
||||
/s/Charles J. Gries*
|
Director
|
) March
4, 2010
|
||
Charles
J. Gries
|
||||
/s/James
N. Hallene*
|
Director
|
) March
4, 2010
|
||
James
N. Hallene
|
||||
/s/Richard J. Holmstrom*
|
Director
|
) March
4, 2010
|
||
Richard
J. Holmstrom
|
||||
/s/Karen J. May*
|
Director
|
) March
4, 2010
|
||
Karen
J. May
|
||||
/s/Patrick Henry*
|
Director
|
) March
4, 2010
|
||
Patrick
Henry
|
||||
/s/Ronald D. Santo*
|
Director
|
) March
4, 2010
|
||
Ronald
D. Santo
|
||||
*By: /s/Mitchell
Feiger
|
Attorney-in-Fact
|
)
|
EXHIBIT
INDEX
|
|
Exhibit Number
|
Description
|
2.1
|
Amended
and Restated Agreement and Plan of Merger, dated as of April 19, 2001, by
and among the Registrant, MB Financial, Inc., a Delaware corporation (“Old
MB Financial”) and MidCity Financial (incorporated herein by reference to
Appendix A to the joint proxy statement-prospectus filed by the Registrant
pursuant to Rule 424(b) under the Securities Act of 1933 with the
Securities and Exchange Commission (the “Commission”) on October 9,
2001)
|
2.2
|
Agreement
and Plan of Merger, dated as of November 1, 2002, by and among the
Registrant, MB Financial Acquisition Corp II and South Holland Bancorp,
Inc. (incorporated herein by reference to Exhibit 2 to the Registrant’s
Current Report Form 8-K filed on November 5, 2002 (File No.
0-24566-01))
|
2.3
|
Agreement
and Plan of Merger, dated as of January 9, 2004, by and among the
Registrant and First SecurityFed Financial, Inc. (incorporated herein by
reference to Exhibit 2 to the Registrant’s Current Report on Form 8-K
filed on January 14, 2004 (File No.0-24566-01))
|
2.4
|
Agreement
and Plan of Merger, dated as of May 1, 2006, by and among the Registrant,
MBFI Acquisition Corp. and First Oak Brook Bancshares, Inc. (“First Oak
Brook”)(incorporated herein by reference to Exhibit 2.1 to the
Registrant’s Current Report on Form 8-K filed on May 2, 2006 (File
No.0-24566-01))
|
2.5
|
Purchase
and Assumption Agreement among Federal Deposit Insurance Corporation,
Receiver of Corus Bank, National Association, Chicago, Illinois, Federal
Deposit Insurance Corporation and MB Financial Bank, N.A., dated as of
September 11, 2009 (incorporated herein by reference to Exhibit 2.1 to the
Registrant’s Current Report on Form 8-K filed on September 17, 2010 (File
No.0-24566-01))
|
3.1
|
Charter
of the Registrant, as amended (incorporated herein by reference to Exhibit
3.1 to the Registrant’s Quarterly Report on Form 10-Q for the quarter
ended September 30, 2009 (File No. 0-24566-01))
|
3.1A
|
Articles
Supplementary to the Charter of the Registrant for the Registrant’s Fixed
Rate Cumulative Perpetual Preferred Stock, Series A (incorporated herein
by reference to Exhibit 3.1 to the Registrant’s Current Report on Form 8-K
filed on December 8, 2008 (File No.0-24566-01))
|
3.2
|
Bylaws
of the Registrant, as amended (incorporated herein by reference to Exhibit
3.1 to the Registrant’s Current Report on Form 8-K filed on December 11,
2007 (File No. 0-24566-01))
|
4.1
|
The
Registrant hereby agrees to furnish to the Commission, upon request, the
instruments defining the rights of the holders of each issue of long-term
debt of the Registrant and its consolidated subsidiaries
|
4.2
|
Certificate
of Registrant’s Common Stock (incorporated herein by reference to Exhibit
4.1 to Amendment No. One to the Registrant’s Registration Statement on
Form S-4 (No. 333-64584))
|
EXHIBIT INDEX | |
Exhibit Number | Description |
4.3
|
Warrant
to purchase shares of the Registrant’s Common Stock (incorporated herein
by reference to Exhibit 4.1 to the Registrant’s Current Report on Form 8-K
filed on December 8, 2008 (File No.0-24566-01))
|
10.1
|
Letter
Agreement, dated as of December 5, 2008, between the Registrant and the
United States Department of the Treasury (incorporated herein
by reference to Exhibit 10.1 to the Registrant’s Current Report on Form
8-K filed on December 8, 2008 (File No.0-24566-01))
|
10.2
|
Amended
and Restated Employment Agreement between the Registrant and Mitchell
Feiger (incorporated herein by reference to Exhibit 10.2 to the
Registrant’s Annual Report on Form 10-K for the year ended December 31,
2008 (File No. 0-24566-01))
|
10.3
|
Employment
Agreement between MB Financial Bank, N.A. and Burton J. Field
(incorporated herein by reference to Exhibit 10.3 to the Registrant’s
Quarterly Report on Form 10-Q for the quarter ended September 30, 2008
(File No. 0-24566-01))
|
10.4
|
Form
of Change and Control Severance Agreement between MB Financial Bank,
National Association and each of Thomas Panos, and Jill E. York
(incorporated herein by reference to Exhibit 10.4 to the Registrant’s
Annual Report on Form 10-K for the year ended December 31, 2008 (File No.
0-24566-01))
|
10.4B
|
Form
of Change and Control Severance Agreement between MB Financial Bank,
National Association and each of Burton Field, Larry J. Kallembach, Brian
Wildman, Rosemarie Bouman and Susan Peterson (incorporated herein by
reference to Exhibit 10.4B to the Registrant’s Annual Report on Form 10-K
for the year ended December 31, 2008 (File No. 0-24566-01))
|
10.5
|
Form
of Letter Agreement dated December 4, 2008 between MB Financial, Inc. and
each of Mitchell Feiger, Thomas Panos, Jill E. York, Thomas P.
Fitzgibbon, Jr., Burton Field, Larry J. Kallembach, Brian Wildman,
Rosemarie Bouman, and Susan Peterson relating to the TARP Capital Purchase
Program (incorporated herein by reference to Exhibit 10.5 to the
Registrant’s Annual Report on Form 10-K for the year ended December 31,
2008 (File No. 0-24566-01))
|
10.5A
|
Form
of Compensation Amendment and Waiver Agreement under the TARP Capital
Purchase Program dated July 2009 between MB Financial, Inc. and certain
employees (incorporated herein by reference to Exhibit 10.5A to the
Registrant’s Quarterly Report on Form 10-Q for the quarter ended September
30, 2009 (File No. 0-24566-01))
|
10.6
|
Coal
City Corporation 1995 Stock Option Plan (incorporated herein by reference
to Exhibit 10.6 to the Registrant’s Registration Statement on Form S-4
(No. 333-64584))
|
10.6A
|
Amendment
to Coal City Corporation 1995 Stock Option Plan ((incorporated herein by
reference to Exhibit 10.6A to the Registrant’s Annual Report on Form
10-K/A for the year ended December 31, 2006, filed on March 2, 2007 (File
No. 0-24566-01))
|
EXHIBIT INDEX | |
Exhibit Number | Description |
10.7
|
MB
Financial, Inc. Amended and Restated Omnibus Incentive Plan
(the “Omnibus Incentive Plan”) (incorporated herein by reference to the
Registrant’s definitive proxy statement filed on March 23, 2007 (File No.
0-24566-01))
|
10.8
|
MB
Financial Stock Deferred Compensation Plan (incorporated herein by
reference to Exhibit 10.8 to the Registrant’s Annual Report on Form 10-K
for the year ended December 31, 2008 (File No. 0-24566-01))
|
10.9
|
MB
Financial Non-Stock Deferred Compensation Plan (incorporated herein by
reference to Exhibit 10.9 to the Registrant’s Annual Report on Form 10-K
for the year ended December 31, 2008 (File No. 0-24566-01))
|
10.10
|
Avondale
Federal Savings Bank Supplemental Executive Retirement Plan Agreement
(incorporated herein by reference to Exhibit 10.2 to Old MB Financial’s
(then known as Avondale Financial Corp.) Annual Report on Form 10-K for
the year ended December 31, 1996 (File No. 0-24566))
|
|
|
|
|
10.13
|
Amended
and Restated Employment Agreement between MB Financial Bank, N.A. and
Ronald D. Santo (incorporated herein by reference to Exhibit 10.1 to the
Registrant’s Current Report on Form 8-K filed on December 14, 2004 (File
No. 0-24566-01))
|
10.13A
|
Amendment
to Amended and Restated Employment Agreement between MB Financial Bank,
N.A. and Ronald D. Santo ((incorporated herein by reference to Exhibit
10.13A to the Registrant’s Annual Report on Form 10-K/A for the year ended
December 31, 2006, filed on March 2, 2007 (File No.
0-24566-01))
|
10.14
|
First
SecurityFed Financial, Inc. 1998 Stock Option and Incentive Plan
(incorporated herein by reference to Exhibit B to the definitive proxy
statement filed by First SecurityFed Financial, Inc. on March 24, 1998
(File No. 0-23063))
|
10.14A
|
Amendment
to First SecurityFed Financial, Inc. 1998 Stock Option and Incentive Plan
((incorporated herein by reference to Exhibit 10.14A to the Registrant’s
Annual Report on Form 10-K/A for the year ended December 31, 2006, filed
on March 2, 2007 (File No. 0-24566-01))
|
EXHIBIT INDEX | |
Exhibit Number | Description |
10.15
|
Tax
Gross Up Agreements between the Registrant and each of Mitchell Feiger,
Burton J. Field, Thomas D. Panos, Jill E. York, Larry J. Kallembach, Brian
Wildman, and Susan Peterson (incorporated herein by reference to Exhibit
10.15 to the Registrant’s Annual Report on Form 10-K for the year ended
December 31, 2008 (File No. 0-24566-01))
|
10.15A
|
Tax
Gross Up Agreement between the Registrant and Rosemarie Bouman
(incorporated herein by reference to Exhibit 10.15A to the Registrant’s
Annual Report on Form 10-K for the year ended December 31, 2008 (File No.
0-24566-01))
|
10.16
|
Form
of Incentive Stock Option Agreement for Executive Officers under the
Omnibus Incentive Plan (incorporated herein by reference to Exhibit 10.16
to the Registrant’s Quarterly Report on Form 10-Q for the quarter ended
June 30, 2007 (File No. 0-24566-01))
|
10.17
|
Form
of Non-Qualified Stock Option Agreement for Directors under the Omnibus
Incentive Plan (incorporated herein by reference to Exhibit
10.16 to the Registrant’s Quarterly Report on Form 10-Q for the quarter
ended June 30, 2007 (File No. 0-24566-01))
|
10.18
|
Form
of Restricted Stock Agreement for Executive Officers under the Omnibus
Incentive Plan (incorporated herein by reference to Exhibit 10.16 to the
Registrant’s Quarterly Report on Form 10-Q for the quarter ended June 30,
2007 (File No. 0-24566-01))
|
10.18A
|
Amendment
to Form of Incentive Stock Option Agreement and Form of Restricted Stock
Agreement for Executive Officers under the Omnibus Incentive Plan
(incorporated herein by reference to Exhibit 10.18A to the Registrant’s
Annual Report on Form 10-K for the year ended December 31, 2008 (File No.
0-24566-01))
|
10.18B
|
Form
of Performance-Based Restricted Stock Agreement for Executive Officers
under the Omnibus Incentive Plan (incorporated herein by reference to
Exhibit 10.18B to the Registrant’s Quarterly Report on Form 10-Q for the
quarter ended September 30, 2009 (File No. 0-24566-01))
|
10.18C
|
Form
of Restricted Stock Agreement for grants on December 2, 2009 to Mitchell
Feiger, Jill E. York and Burton J. Field (incorporated herein by reference
to Exhibit 10.18C to the Registrant’s Current Report on Form 8-K filed on
December 7, 2009 (File No. 0-24566-01))
|
10.19
|
Form
of Restricted Stock Agreement for Directors under the Omnibus Incentive
Plan (incorporated herein by reference to Exhibit 10.16 to the
Registrant’s Quarterly Report on Form 10-Q for the quarter ended June 30,
2007 (File No. 0-24566-01))
|
10.20
|
First
Oak Brook Bancshares, Inc. Incentive Compensation Plan (incorporated
herein by reference to Appendix A to the definitive proxy statement filed
by First Oak Brook on March 30, 2004 (File No. 0-14468))
|
EXHIBIT INDEX | |
Exhibit Number | Description |
10.20A
|
Amendment
to First Oak Brook Bancshares, Inc. Incentive Compensation Plan
((incorporated herein by reference to Exhibit 10.20A to the Registrant’s
Annual Report on Form 10-K/A for the year ended December 31, 2006, filed
on March 2, 2007 (File No. 0-24566-01))
|
10.21
|
First
Oak Brook Bancshares, Inc. 2001 Stock Incentive Plan (incorporated herein
by reference to Appendix A to the definitive proxy statement filed by
First Oak Brook on April 2, 2001 (File No. 0-14468))
|
10.21A
|
Amendment
to First Oak Brook Bancshares, Inc. 2001 Stock Incentive Plan
((incorporated herein by reference to Exhibit 10.21A to the Registrant’s
Annual Report on Form 10-K/A for the year ended December 31, 2006, filed
on March 2, 2007 (File No. 0-24566-01))
|
10.22
|
First
Oak Brook Bancshares, Inc. Directors Stock Plan (incorporated herein by
reference to Exhibit 4.1 to the Registration Statement on Form S-8 filed
by First Oak Brook on October 25, 1999 (File No. 333-89647))
|
10.23
|
Reserved.
|
10.24
|
Reserved.
|
10.25
|
Reserved.
|
10.26
|
Reserved.
|
10.27
|
First
Oak Brook Bancshares, Inc. Executive Deferred Compensation Plan
(incorporated by reference to Exhibit 10.3 to First Oak Brook’s Annual
Report on Form 10-K for the year ended December 31, 1997 (File No.
0-14468))
|
10.27A
|
Amendment
to First Oak Brook Bancshares, Inc. Executive Deferred Compensation Plan
(incorporated herein by reference to Exhibit 10.27A to the Registrant’s
Quarterly Report on Form 10-Q/A for the quarter ended March 31, 2007 filed
on May 15, 2007)
|
10.28
|
Transitional
Employment Agreement between the Registrant (as successor to First Oak
Brook) and Susan Peterson (incorporated herein by reference
to Exhibit 10.27 to the Registrant’s Quarterly Report on Form
10-Q for the quarter ended September 30, 2006 (File No.
0-24566-01))
|
EXHIBIT INDEX | |
Exhibit Number | Description |
10.29
|
Form
of Transitional Employment Agreement between the Registrant (as successor
to First Oak Brook) and Rosemarie Bouman (incorporated herein by reference
to Exhibit 10.10 to First Oak Brook's Annual Report on Form 10-K for the
year ended December 31, 1998 (File No. 0-14468))
|
10.29A
|
First
Amendment to Transitional Employment Agreement between the Registrant (as
successor to First Oak Brook) and Rosemarie Bouman ((incorporated herein
by reference to Exhibit 10.28A to the Registrant's Annual Report on Form
10-K/A for the year ended December 31, 2006, filed March 2, 2007 (File No.
0-24566-01))
|
10.29B
|
Second
Amendment to Transitional Employment Agreement between the Registrant (as
successor to First Oak Brook) and Rosemarie
Bouman ((incorporated herein by reference to Exhibit 10.28B to
the Registrant’s Annual Report on Form 10-K/A for the year ended December
31, 2006, filed March 2, 2007 (File No. 0-24566-01))
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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* Filed
herewith
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