First Midwest Bancorp in Itasca, Ill., reported a significant decline in quarterly earnings on costs tied to two acquisitions.
The $8.7 billion-asset company's third-quarter profit fell nearly 37% from a year earlier, to $18.5 million, or 25 cents a share.
The company in August bought the Chicago-area banking operations of Popular, which included 12 branches and its small-business and middle-market commercial lending units, along with $732 million in deposits and $550 million in loans.
In September, First Midwest bought National Machine Tool Financial Corp., which provides nonbank financing alongside its equipment leasing platform, which is expected to generate $40 million annually, the company said in a press release.
Net interest income rose 8%, to $74 million. Total loans increased 16%, to nearly $7 billion. The net interest margin expanded by 9 basis points, to 3.72%.
The provision for loan losses more than doubled, to $10.7 million.
Noninterest income fell 36%, to $37 million, though the 2013 results includes $34 million in gains from the sale of an equity investment. Noninterest expense rose 9%, to $70.3 million, on higher salaries, occupancy, equipment and technology costs.
The company also said it expects to close its $58 million acquisition of Great Lakes Financial Resources in Chicago by the end of this year. That deal will include eight branches, $490 million in deposits and $234 million in loans.