Second-quarter earnings at First Midwest Bancorp (FMBI) declined from a year ago as the Itasca, Ill., company's net interest income fell and its provision for loan losses increased.
The $8.1 billion-asset company said Wednesday that its second-quarter earnings totaled $6.3 million, down 21% from a year earlier. Its earnings per share of 9 cents fell two cents short of analysts' estimates, according to Thomson Reuters.
First Midwest's net interest income dropped more than 6%, to $66.7 million, year over year because of a decline in covered interest-earning assets, lower yields earned on loans and investments and the cost of additional senior debt.
Noninterest income fell about 9%, to $24 million, from a year earlier as service charges on deposit accounts declined. Card-based fees increased about 3%, to $5.3 million, from a year earlier.
The company's provision for loan losses increased more than 19%, to $22.5 million, from a year earlier. Nonperforming loans rose about 12%, to $206.7 million, year over year.
Total loans increased almost 2%, to $5.5 billion, year over year with corporate loans rising about 4%, to $4.6 billion and consumer loans climbing roughly 2%, to $675 million.