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 (OZRK) and Home Bancshares (HOMB) - excel at creating value for shareholders as evidenced by their phenomenal 2-year stock performance. Others - like MB Financial (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...
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