MB Financial Inc., which took an aggressive stance on its credit by purging bad loans, reported a $10 million net loss available for shareholders during the second quarter.
The $9.98 billion-asset company's loan-loss provision jumped 53% from the first quarter, to $61.3 million, after MB sold $281.6 million in loans for net proceeds of $194.6 million during the second quarter. The Chicago company recognized $87 million in chargeoffs from the sale, which included $156.3 million in nonperforming loans.
The sale led to an improvement in nonperforming assets, which fell 40% from a quarter earlier, to $239.3 million, or 2.4% of total assets. Nonperforming assets made up nearly 4% of total assets at March 31.
The second quarter's results included $2.6 million in dividends for preferred stock. It compares to a $4.3 million in net income available to shareholders in the first quarters. MB's net income available to shareholders was $16.6 million a year earlier.