Stephen Rosenman
Long/short equity, deep value, special situations

MB Financial: After 15 Ho-Hum Acquisitions, The Taylor Bid Shouldn't Excite

Sometimes bigger isn't better. In the past, I've highlighted banks-that-eat-other-banks, gobbling up smaller financial institutions often on the cheap. These budding regional titans - like Bank of the Ozarks (NASDAQ:OZRK) and Home Bancshares (NASDAQ:HOMB) - excel at creating value for shareholders as evidenced by their phenomenal 2-year stock performance. Others - like MB Financial (NASDAQ:MBFI), the Chicago-based commercial bank - prove that buying other banks doesn't always add value for shareholders, especially when too much is paid for those acquisitions.

Indeed MB Financial has been grabbing other financials aggressively - taking over 15 banks since 2000, including 6 FDIC-assisted transactions in 2009 and 2010. Last week, this $1.4 billion market cap bank swallowed Taylor...

Join Seeking Alpha PRO to read this archived article and 11,574 other archived articles
FREESA PRO MEMBERS
IDEA GENERATORXExclusive access to 10 PRO ideas every day
INVESTING IDEAS LIBRARYXExclusive access to PRO library of more than 15,000 ideas
SECTOR EXPERT NETWORKXExclusive access to all sector experts for direct consultation
PERFORMANCE TRACKINGXTrack performance of all PRO stock ideas
PROFESSIONAL TOOLSXProfessional Idea Filters to zero-in based on industry, market cap and more
"In just the first month of using PRO, I used it to generate two ideas which were actionable for me. As a result of these two positions, I have earned more than 20 times the annual subscription costs for PRO."Michael Yagemann, Greenbridge Capital
"I am pleasantly surprised with the scope of small and mid-cap coverage PRO offers. You can't find that any where else."Patrick Rice, Mainstay Capital Management
You may cancel at any time for any reason, and receive a prompt refund for membership on months paid and not used (max. 6 months). Details