First Midwest Bancorp Inc. of Itasca, Ill., said Wednesday that its fourth-quarter loss nearly quintupled from a year earlier, to $26.9 million, or 57 cents a share, as credit quality deteriorated and the value of its investments declined sharply.

For the full year, First Midwest's earnings fell 38%, to $49.3 million.

The $8.5 billion-asset company said its fourth-quarter provision for loan losses in the fourth quarter nearly tripled from the third quarter and rose roughly 20-fold from a year earlier, to $42.3 million.

Nonaccrual loans rose 611% from a year earlier and 140% from a quarter earlier, to $127.8 million at yearend. First Midwest said that three-quarters of the nonaccrual loans are to residential builder. It also recorded noncash impairment charges of $34.5 million related to losses on three trust-preferred collateralized debt obligations, two whole loan mortgage-backed securities, and a Sallie Mae debt issuance.

Subscribe Now

Access to authoritative analysis and perspective and our data-driven report series.

14-Day Free Trial

No credit card required. Complete access to articles, breaking news and industry data.