Taylor Capital Group Inc. of Chicago on Thursday posted a much wider second-quarter loss than analysts expected, which it said stemmed from asset-quality problems and a one-time charge for raising capital.
The $4.6 billion-asset parent of Cole Taylor Bank had a net loss of $48.3 million, or $3.35 a share, compared with a net loss of $26.1 million, or $2.49 a share, a year earlier.
Daniel Cardenas, an analyst at Howe Barnes Hoefer & Arnett Inc., said he had estimated the difference between the first-quarter and second-quarter loss would be 39 cents a share. Instead it was $2.05.
Nonperforming assets rose 8.3% quarter over quarter, to $182.5 million, while the loan-loss provision doubled to $43.9 million.
Also behind the loss was a one-time, noncash charge of $15.8 million from raising $75 million in capital. Taylor's president and chief executive, Mark Hoppe, said in a conference call that he was "personally very disappointed" with the net loss. "The continued uncertainty and difficulty in this real estate market continued to claim more victims," he said. Yet Hoppe said he was "cautiously optimistic about remediating" the bank's problem assets.
