J.P. Morgan Remains Neutral After MB Financial Suffers Loan Loss

According to a research report this morning, J.P. Morgan reported another strong loss for MB Financial MBFI on loans and taxes. J.P. Morgan stated, “MB Financial reported 1Q12 EPS of $0.33 beating our and Street estimates by a penny as lower than expected PTPP income was offset by better than expected provision for loan losses and taxes. Overall we would call it a mixed quarter from MBFI. Progress was made on reducing problem asset levels (although OREO costs remain a drag), however, we were surprised to see such a sharp degree of loan contraction again in1Q.” JP Morgan raises its PT from $22 to $23 on MB Financial, which closed Friday at $20.91.