Good for Leasing Industry
MB Financial, Inc. (NASDAQ: MBFI), the holding company for MB Financial Bank, N.A., on Monday announced 2013 second quarter net income of $25.3 million. A joint press release also announced MB Financial Taylor Capital Group, Inc. (“Taylor Capital”) (NASDAQ: TAYC) announced the signing of a definitive merger agreement whereby MB Financial will acquire Taylor Capital. Taylor Capital is the holding company of Cole Taylor Bank, a commercial bank headquartered in Chicago with $5.9 billion in assets, $3.3 billion in loans and $3.7 billion in deposits as of June 30, 2013. MB Financial is the $9.4 billion Chicago-based holding company of MB Financial Bank, N.A.
It was noted that the MB Financial increase was driven by the addition of Celtic Leasing Corp. (“Celtic”), a recently acquired leasing subsidiary, which contributed $13 million in leasing revenues during the first six months of 2013. Excluding Celtic, leasing revenues increased 28% in the first six months of 2013 compared to the first six months of 2012.
http://www.thestreet.com/story/11977441/1/mb-financial-inc-reports-second-quarter-net-income-of-253-million-and-return-on-assets-of-109.html
Ed Dahlka
President
Cole Taylor Equipment Finance
Cole Taylor bank got into equipment finance with a team lead by Edward A. Dahlka, Jr., former president and founder of LaSalle National Leasing (now part of Bank of America Leasing). He had been building his team, opening offices throughout the United States with new people, as evidenced in Leasing News “New Hires-Promotions” David M. Drury has joined the company as group senior vice president of sales and capital markets. In this role, Drury will report to CTEF president, Edward A. Dahlka, Jr.
Jill York, CFO
MB Financial
Jill York, CFO, MB Financial told Leasing News it will be “Business as usual. Ed is doing a great job with this business and focuses on a different segment than MB’s lease banking group and leasing subsidiaries. Ed does large ticket, while Celtic and LaSalle do mid ticket. All originate direct.”
A conference telephone call after the announcement found wide acceptance from the press as the thinking was the strategically attractive combination is expected to nearly double MB Financial’s middle market commercial banking market share in the Chicago area. Reportedly, Taylor Capital’s nine branches complement MB Financial’s existing network of 85 Chicago-area branches. The combined bank is expected to have a top-10 deposit market share ranking in the Chicago MSA and top-5 deposit market share ranking in Cook County.
Mitchell Feiger
President, CEO
MB Financial
“The merger of Taylor Capital and MB Financial is a terrific strategic transaction. Each side brings a strong middle market commercial banking business as well as significant national niche businesses,” stated Mitchell Feiger, President and Chief Executive Officer of MB Financial.
The Chicago Tribune noted in its first sentence: “MB Financial Bank plans to close three to six branches in the Chicago area as part of its newly proposed $680 million purchase of the parent of Cole Taylor Bank,” as well as “,,,That will also mean the end a company that has been overseen by three generations of the Taylor family.”
Feiger will remain CEO of the combined parent company. Taylor Capital CEO Mark Hoppe will become CEO of MB Financial’s subsidiary bank, MB Financial Bank.
The Chicago Tribune noted that Mitchell Feiger said “he has known Hoppe for 30 years. Upon completion of the merger, Jennifer Stearns and C. Bryan Daniels from Taylor Capital’s board of directors will join the MB Financial board.
“Feiger said on the call that he also looks forward to working with Bruce Taylor, chairman and a board member of Taylor Capital.(overseen by three generations of the Taylor family.), (however)… Taylor isn’t named as a director of the merged company. The Taylor family owns about 30 percent of the company, with the Steans family, who invested in the bank a few years ago and were instrumental in installing Hoppe, owning about 14 percent, the latest proxy statement shows.”
Mark A. Hoppe
President/CEO
Cole Taylor Bank
“Hoppe is a former LaSalle Bank lender who left that institution after Bank of America bought it. Cole Taylor and other local banks have grown amid the shakeout of Bank of America’s purchase of LaSalle.”
http://www.chicagotribune.com/business/breaking/chi-mb-financial-taylor-capital-20130715,0,318500.story
It was Hoppe who convinced Ed Dahlka to form a new equipment finance division in Towson, Maryland.
http://leasingnews.org/archives/Jul2012/7_16.htm#cole_taylor
Taylor Capital President and Chief Executive Officer Mark Hoppe will become President and Chief Executive Officer of MB Financial’s subsidiary bank, MB Financial Bank. Upon completion of the merger, Jennifer W. Steans and C. Bryan Daniels from Taylor Capital’s board of directors will join the MB Financial board. The definitive agreement was unanimously approved by the boards of directors of MB Financial and Taylor Capital.
The merger is subject to regulatory approvals, approval by MB Financial stockholders, approval by Taylor Capital stockholders and certain other customary closing conditions and is expected to close in the first half of 2014. The merger is expected to be immediately accretive to MB Financial’s annual GAAP and cash EPS.
Leasing News 