Aug. 26--MB Financial Inc., a week after completing a major acquisition, announced a 17 percent hike in its quarterly dividend.
The Chicago-based bank, which last week sewed up its purchase of local mid-sized rival Taylor Capital Group Inc., said Monday that it raised its quarterly cash dividend by 2 cents a share to 14 cents.
The dividend is payable on Sept. 30 to shareholders as of Sept. 15.
It was the second dividend boost in a year for $15 billion-asset MB Financial. In August 2013, it raised its dividend from a dime to 12 cents a share.
The latest dividend increase comes after a second quarter in which MB Financial surpassed Wall Street's expectations, according to a report by analyst Christopher McGratty of investment banking firm Keefe Bruyette & Woods.
Annualized, the dividend of 56 a share would mean that MB Financial is paying out 27 percent of its expected 2015 earnings in dividends, McGratty wrote.
He expects the second half of 2014 to "be a continuation of the positive momentum" due partly to the acquisition of the owner of Cole Taylor Bank "likely exceeding our expectations."
McGratty earlier raised his third-quarter earnings estimate for MB Financial from 39 cents a share to 41 cents a share.
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