MB Financial reported a fourth quarter 2018 net income of $75.9 million, a gain of $33.2 million over its income of $42.7 million the previous quarter but below the $144.2 million income in the fourth quarter of 2017.

Diluted earnings per common share were $0.85 in the fourth quarter of 2018 compared to $0.47 last quarter and $1.67 in the fourth quarter a year ago.

Annual net income for 2018 was $213.9 million compared to $304.0 million for 2017. Diluted earnings per common share were $2.55 for 2018 compared to $3.49 for 2017.

Net income and earnings per common share for the fourth quarter of 2017 and full year 2017 were positively impacted by a $104.2 million, or $1.23 per common share, tax benefit due to the enactment of the Tax Cuts and Jobs Act of 2017. Net income and earnings per common share for the fourth and third quarters of 2018 were also positively impacted by TCJ Act tax benefits of $8.2 million, or $0.10 per common share, and $2.2 million, or $0.03 per common share, respectively.

Operating earnings, excluding the Mortgage Banking Segment, grew by $14.5 million, or 26.7%, to $69.1 million compared to the prior quarter. These results were attributable to the following items (net of income taxes): a $1.3 million increase in net interest income, a $4.7 million increase in lease financing revenue, a $7.0 million decrease in provision for credit losses, and a $5.2 million decrease in state income tax accruals, partly reduced by a $3.2 million increase in non-interest expenses.

Diluted operating earnings per common share, excluding the Mortgage Banking Segment, were $0.77 compared to $0.60 in the prior quarter.

Loan balances, excluding purchased credit-impaired loans, increased $107.2 million (+0.8%, or +3.1% annualized) to $14.0 billion due to growth in commercial loan balances partly offset by decreases in construction and commercial real estate loan balances.

Average loan balances, excluding purchased credit-impaired loans, increased $44.5 million (+0.3%, or +1.3% annualized) to $13.8 billion.

Average yield on loans, excluding accretion on loans acquired in bank mergers, increased 14 basis points to 4.82% from 4.68% in the prior quarter as a result of increases in short-term interest rates

Operating earnings were $10.0 million, an increase of $2.8 million, or 39.8%, compared to the prior quarter.

This increase was mostly due to higher residual gains and fees from the sale of third-party equipment maintenance contracts.