News Column

MB Financial Bank parent hikes dividend

August 26, 2014

By Becky Yerak, Chicago Tribune



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.

byerak@tribune.com

Follow @BeckyYerak Follow @chibreakingbiz

___

(c)2014 the Chicago Tribune

Visit the Chicago Tribune at www.chicagotribune.com

Distributed by MCT Information Services


For more stories on investments and markets, please see HispanicBusiness' Finance Channel



Source: Chicago Tribune (IL)


Story Tools






HispanicBusiness.com Facebook Linkedin Twitter RSS Feed Email Alerts & Newsletters