UPDATE: Jefferies Raises PT on MB Financial Following Taylor Capital Acquisition Announcement
In a report published Wednesday, Keefe, Bruyette & Woods analyst Christopher McGratty reiterated an Outperform rating and $35.00 price target on MB Financial (NASDAQ: MBFI ). In the report, Keefe, Bruyette & Woods noted, “In our next edition of our product, Making the Case, we revisit Outperform-rated MB Financial (MBFI), in addition to featuring the company as one of KBW's ‘Holiday Opportunities' for investors. Since we published our first Making the Case edition on MB Financial in February 2014, we have seen MBFI close its TAYC acquisition and begin to display the revenue growth potential of the combined institutions. With an increasing likelihood of positive estimate revisions in the coming months coupled with the company's still-discounted valuation, we believe MBFI remains an attractive investment opportunity for low-beta investors heading into 2015.”
MB Financial closed on Tuesday at $33.01.

Keefe, Bruyette & Woods Sees Holiday Opportunities For MB Financial

(1)
 
Annualized operating return on average assets is computed by          dividing annualized operating earnings by average total assets. Annualized operating return on average common equity is computed by          dividing annualized operating earnings by average common equity. Operating earnings is defined as net income as reported less          non-core items, net of tax. (2)
Net cash flow (net income available to common stockholders, plus          other intangibles amortization expense, net of tax benefit) divided          by average tangible equity (average common stockholders' equity less          average goodwill and average other intangibles, net of tax benefit). (3)
Annualized cash operating return on average tangible common equity          is computed by dividing annualized cash operating earnings          (operating earnings plus other intangibles amortization expense, net          of tax benefit, less dividends on preferred shares) by average          tangible common equity. Operating earnings is defined as net income          as reported less non-core items, net of tax. (4)
Equals total interest expense divided by the sum of average interest          bearing liabilities and noninterest bearing deposits. (5)
Equals total non-interest expense excluding non-core items divided          by the sum of net interest income on a fully tax equivalent basis,          total non-interest income less non-core items, and tax equivalent          adjustment on the increase in cash surrender value of life insurance. (6)
Equals total non-interest expense excluding non-core items less          total non-interest income excluding non-core items, and including          tax equivalent adjustment on the increase in cash surrender value of          life insurance divided by average assets. (7)
Equals total non-interest income excluding non-core items and tax          equivalent adjustment on the increase in cash surrender value of          life insurance divided by the sum of net interest income on a fully          tax equivalent basis, total non-interest income less non-core items,          and tax equivalent adjustment on the increase in cash surrender          value of life insurance. (8)
Represents net interest income on a fully tax equivalent basis          assuming a 35% tax rate, as a percentage of average interest earning          assets. (9)
Non-performing loans excludes purchased credit-impaired loans and          loans held for sale. Non-performing assets excludes purchased          credit-impaired loans, loans held for sale, and other real estate          owned related to FDIC transactions. (10)
Equals total ending stockholders’ equity less goodwill and other          intangibles, net of tax benefit, divided by total assets less          goodwill and other intangibles, net of tax benefit. (11)
Equals total ending stockholders’ equity less goodwill and other          intangibles, net of tax benefit, divided by total assets less          goodwill and other intangibles, net of tax benefit. (12)
Equals total ending common stockholders’ equity less goodwill and          other intangibles, net of tax benefit, divided by total assets less          goodwill and other intangibles, net of tax benefit. (13)
Equals total ending stockholders’ equity divided by common shares          outstanding. (14)
Equals total ending stockholders’ equity less goodwill and other          intangibles, net of tax benefit, divided by common shares          outstanding. NON-GAAP FINANCIAL INFORMATION
This press release contains certain financial information determined by      methods other than in accordance with accounting principles generally      accepted in the United States of America (GAAP). These measures include      operating earnings, core non-interest income, core non-interest income      to revenues (with non-core items excluded from both core non-interest      income and revenues), core non-interest expense, non-core non-interest      income and non-core non-interest expense, net interest income on a fully      tax equivalent basis, net interest margin on a fully tax equivalent      basis, efficiency ratio and the ratio of annualized net non-interest      expense to average assets with net gains and losses on investment      securities, net gains and losses on sale of other assets, gain on      extinguishment of debt and increase in market value of assets held in      trust for deferred compensation excluded from the non-interest income      components of these ratios, and contingent consideration expense, merger      related expenses, loss on low to moderate income real estate investment      and increase in market value of assets held in trust for deferred      compensation excluded from the non-interest expense components of these      ratios, with tax equivalent adjustment for tax-exempt interest income      and increase in cash surrender value of life insurance, as applicable;      ratios of tangible equity to tangible assets, tangible common equity to      risk-weighted assets and Tier 1 common capital to risk-weighted assets;      tangible book value per common share; and annualized cash return on      average tangible common equity. Our management uses these non-GAAP      measures, together with the related GAAP measures, in its analysis of      our performance and in making business decisions. Management also uses      these measures for peer comparisons. Management believes that operating earnings, core and non-core      non-interest income and non-interest expense are useful in assessing our      core operating performance and in understanding the primary drivers of      our non-interest income and non-interest expense when comparing periods. The tax equivalent adjustment to net interest income, net interest      margin, tax-exempt interest income and increase in cash surrender value      of life insurance recognizes the income tax savings when comparing      taxable and tax-exempt assets and assumes a 35% tax rate. Management      believes that it is a standard practice in the banking industry to      present net interest income and net interest margin on a fully tax      equivalent basis, and accordingly believes that providing these measures      may be useful for peer comparison purposes. For the same reasons,      management believes that the tax equivalent adjustments to tax-exempt      interest income and increase in cash surrender value of life insurance      are useful. Management also believes that by excluding net gains and losses on      investment securities, net gains and losses on sale of other assets,      gain on extinguishment of debt and increase in market value of assets      held in trust for deferred compensation from the non-interest income      components, and excluding contingent consideration expense,      merger-related expenses, loss on low to moderate income real estate      investment and increase in market value of assets held in trust for      deferred compensation from the non-interest expense components, of the      efficiency ratio and the ratio of annualized net non-interest expense to      average assets, these ratios better reflect our core operating      performance, as the excluded items do not pertain to our core business      operations and their exclusion makes these ratios more meaningful when      comparing our operating results from period to period. In addition, management believes that presenting the ratio of Tier 1      common equity to risk-weighted assets is useful for assessing our      capital strength and for peer comparison purposes. The other measures      exclude the acquisition-related goodwill and other intangible assets,      net of tax benefit, in determining tangible assets, tangible equity,      tangible common equity and average tangible common equity and exclude      other intangible amortization expense, net of tax benefit, in      determining net cash flow available to common stockholders. Management      believes the presentation of these other financial measures, excluding      the impact of such items, provides useful supplemental information that      is helpful in understanding our financial results, as they provide a      method to assess management’s success in utilizing our tangible capital,      as well as our capital strength. Management also believes that providing      measures that exclude balances of acquisition-related goodwill and other      intangible assets, which are subjective components of valuation,      facilitates the comparison of our performance with the performance of      our peers. In addition, management believes that these are standard      financial measures used in the banking industry to evaluate performance. The non-GAAP disclosures contained herein should not be viewed as      substitutes for the results determined to be in accordance with GAAP,      nor are they necessarily comparable to non-GAAP performance measures      that may be presented by other companies. A reconciliation of net interest margin on a fully tax equivalent basis      to net interest margin is contained in the tables under “Net Interest      Margin.” A reconciliation of tangible book value per common share to      book value per common share is contained in the “Selected Financial      Ratios” table. Reconciliations of core and non-core non-interest income      and non-interest expense to non-interest income and non-interest expense      are contained in the tables under “Results of Operations—Third Quarter      Results.”
The following table presents a reconciliation of tangible equity to      stockholders' equity (in thousands):
 


MB Financial, Inc. Reports Third Quarter Results; Successfully Completes Taylor Capital Merger

July 24, 2014 08:55 PM Eastern Daylight Time
CHICAGO--( BUSINESS WIRE )--MB Financial, Inc. (NASDAQ: MBFI), announced today that the Office of      the Comptroller of the Currency has approved the merger of Cole Taylor      Bank, the bank subsidiary of Taylor Capital Group, Inc., with MB      Financial, Inc.’s bank subsidiary, MB Financial Bank, N.A. As previously      announced, the Board of Governors of the Federal Reserve System on June      30, 2014, approved the merger of Taylor Capital with MB Financial, Inc.
Mitchell Feiger, MB Financial, Inc. President and Chief Executive      Officer, said, “I’m pleased that we’ve received all necessary regulatory      approvals for our pending merger with Taylor Capital and Cole Taylor      Bank. We expect that the combination of our two middle-market,      relationship-focused organizations will provide even more for our      clients - more highly skilled bankers, more locations and more products      and services.”
The transaction, which remains subject to the satisfaction of other      customary conditions to closing, is expected to be completed on or about      August 18, 2014. MB Financial, Inc. is the holding company for MB Financial Bank, N.A. MB      Financial Bank is a locally operated financial institution that has been      delivering competitive personalized service for over 100 years to      businesses and individuals who live and work in the Chicago metropolitan      area. Safe Harbor Statement: Statements in this press release that are not      historical facts are "forward-looking statements" within the meaning of      the Private Securities Litigation Reform Act of 1995. By their nature,      such statements are subject to numerous factors that could cause actual      results to differ materially from those anticipated in such statements,      as discussed in MB Financial’s filings with the Securities and Exchange      Commission. Contacts


MB Financial Receives OCC Approval for Pending Merger

Announces Dividend on Series A Preferred Stock
CHICAGO, July 21, 2014 /PRNewswire/ --  Taylor Capital Group, Inc. (the "Company") (NASDAQ: TAYC ) the parent company of Cole Taylor Bank (the "Bank"), today announced the declaration of a quarterly cash dividend of $0.50 per share on its Series A perpetual non-cumulative preferred stock (the "Series A Preferred Stock") (NASDAQ:   TAYCO). The dividend is payable on August 15, 2014 to stockholders of record on July 31, 2014. This dividend announcement, as well as additional information, can be found on Taylor Capital Group's website: www.taylorcapitalgroup.com . About Taylor Capital Group, Inc. (NASDAQ: TAYC )
Taylor Capital Group, Inc. is the holding company of Cole Taylor Bank, a commercial bank headquartered in Chicago with assets of $6.0 billion as of June 30, 2014. For more than 80 years, Cole Taylor Bank has been successfully meeting the banking needs of closely-held companies and the people who own and manage them by focusing on a relationship-based approach to business. Through its national businesses, Cole Taylor provides a full range of financial services, including asset based lending, commercial equipment financing, and residential mortgage lending. SOURCE  Taylor Capital Group, Inc.
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Taylor Capital Group, Inc. Announces Dividend on Series A Preferred Stock

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Cole Taylor Business Capital is the asset based lending division of Cole Taylor Bank, a commercial bank headquartered in Chicago, Illinois. Cole Taylor Business Capital seeks asset based lending opportunities in the $5,000,000 to $50,000,000 range and is offering dedicated syndication opportunities of up to $100,000,000. The firm can also provide access to the full range of business banking products and services offered by Cole Taylor Bank. Cole Taylor Bank is a wholly owned subsidiary of Taylor Capital Group, Inc. (TAYC - NASDAQ), and specializes in serving the needs of closely held businesses and the people who own and manage them. Through its divisions, Cole Taylor Business Capital, Cole Taylor Equipment Finance and Cole Taylor Mortgage, the Bank also provides asset based lending services, commercial equipment financing, residential mortgage loan products, and depository services through a growing network of offices throughout the United States. Cole Taylor is a member of FDIC and is an Equal Housing Lender.

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