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Mb Financial Inc Md (MBFI) SEC Filing 10-K Annual report for the fiscal year ending Sunday, December 31, 2017

Mb Financial Inc Md

CIK: 1139812 Ticker: MBFI



EXHIBIT 99.1
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4Q17

MB FINANCIAL, INC. REPORTS FOURTH QUARTER 2017 NET INCOME OF $144.2 MILLION

CHICAGO, January 25, 2018 – MB Financial, Inc. (NASDAQ: MBFI), the holding company for MB Financial Bank, N.A., today announced fourth quarter 2017 net income of $144.2 million compared to $60.8 million last quarter and $47.2 million in the fourth quarter a year ago.  Diluted earnings per common share were $1.67 in the fourth quarter of 2017 compared to $0.69 last quarter and $0.53 in the fourth quarter a year ago. Annual net income for 2017 was $304.0 million compared to $174.1 million for 2016. Diluted earnings per common share were $3.49 for 2017 compared to $2.13 for 2016.

Fourth quarter 2017 operating earnings were $47.4 million compared to $62.8 million last quarter and $51.8 million in the fourth quarter a year ago.  Diluted operating earnings per common share were $0.53 in the fourth quarter of 2017 compared to $0.72 last quarter and $0.59 in the fourth quarter a year ago. Annual operating earnings for 2017 were $211.1 million compared to $190.5 million for 2016. Diluted operating earnings per common share were $2.39 for 2017 compared to $2.34 for 2016.

Capital Raise and Tax Reform Update

In November 2017, we successfully issued $200 million in 6% fixed rate non-cumulative perpetual preferred stock, and our bank subsidiary issued $175 million in 4% fixed-to-floating rate subordinated notes. A portion of the net proceeds of the preferred stock offering will be used to redeem all $100 million of our 8% non-cumulative perpetual preferred stock on February 15, 2018 and $10 million was used to pre-pay our term note in January 2018.

We recognized a $104.2 million tax benefit in the fourth quarter of 2017 due to the enactment of the Tax Cuts and Jobs Act of 2017 ("TCJ Act"). Approximately $6.5 million of the tax benefit was recognized at our Banking Segment, $65.3 million at our Leasing Segment, and $32.4 million at our Mortgage Banking Segment.

Our company's capital position was strengthened by the capital we raised and the TCJ Act tax benefit. Our tangible common equity to tangible assets increased to 8.70% at December 31, 2017 compared to 8.07% at September 30, 2017 and our total capital to risk-weighted assets increased to 14.23% at December 31, 2017 compared to 11.67% at September 30, 2017.

In the fourth quarter, we contributed $7.5 million to the MB Financial Charitable Foundation, raised our minimum wage to $15 per hour effective January 2018, and awarded approximately $2.7 million in one-time bonuses.

We estimate that our effective tax rate in 2018 will be reduced by approximately 10%, due to the TCJ Act, to 24%.

"We had a very busy fourth quarter and 2017.  We raised $375 million of capital; increased our residential mortgage team with members transferred from Busey Bank; and as a result of a Tax Cuts and Jobs Act of 2017 tax benefit, we were able to give back to our employees and communities.  Our capital position meaningfully strengthened. We significantly grew our core banking business.  And, we did so while maintaining high credit quality," said Mitchell Feiger, President and Chief Executive Officer of MB Financial, Inc.  "In 2017, we had solid loan growth of 9.8%, low-cost deposit growth of 3.4%, and key fee growth, excluding mortgage banking revenue, of 15.1%.  I attribute our success to an unwavering focus on the four pillars of our long-term strategy:  high quality low-cost deposits; strong rapidly growing fee businesses; diversification across revenue and profit sources, loans and deposits; and close attention to balance sheet risk, especially credit quality."
Mr. Feiger continued, "Our operating earnings for the quarter were down as funding costs and other expenses increased and our Mortgage Banking segment recorded a loss.  While disappointing, many of the things we accomplished in 2017, particularly in the fourth quarter, set us up well for 2018. We had significant growth in low-cost deposits in the quarter (15.6% annualized) led by growth in noninterest bearing deposits of 18.2% on an annualized basis. Lease finance revenue grew 17.9% in the year as a result of investments we made in Leasing personnel and products. Our Wealth Management Department saw good growth and reorganized to be even more successful. Fourth quarter trust and asset management fees were 6.9% greater than the same period a year earlier. Our Cards and Payments businesses continues to grow at a rapid pace. Fourth quarter cards fees were 15.9% greater than the same period in 2016. MB Business Capital (our asset-based lending unit) and our Commercial Specialty businesses, among others, added significant numbers of new clients in the year. Our investment portfolio again had strong returns. And our growing investments in technology and infrastructure should provide a more reliable, safer, and more nimble operating environment for our company. These investments, new clients, increased revenues, and strong expense control, along with an expected improvement in our net interest margin in the first quarter of 2018 position us well for 2018.”


The following information was filed by Mb Financial Inc Md (MBFI) on Thursday, January 25, 2018 as an 8K 2.02 statement, which is an earnings press release pertaining to results of operations and financial condition. It may be helpful to assess the quality of management by comparing the information in the press release to the information in the accompanying 10-K Annual Report statement of earnings and operation as management may choose to highlight particular information in the press release.

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Document And Entity Information
Consolidated Balance Sheets
Consolidated Balance Sheets (parenthetical)
Consolidated Statements Of Cash Flows
Consolidated Statements Of Changes In Stockholders' Equity
Consolidated Statements Of Changes In Stockholders' Equity (parenthetical)
Consolidated Statements Of Comprehensive Income
Consolidated Statements Of Operations
Business Combinations
Business Combinations (tables)
Business Combinations - American Chartered Merger Acquired Loans (details)
Business Combinations - American Chartered Merger Assets Acquired And Liabilities Assumed (details)
Business Combinations - American Chartered Merger Expenses Included In Net Income (details)
Business Combinations - Narrative (details)
Commitments And Contingencies
Commitments And Contingencies (tables)
Commitments And Contingencies - Financial Instruments Outstanding Representing Off-balance Sheet Credit Risk (details)
Commitments And Contingencies - Narrative (details)
Condensed Parent Company Financial Information
Condensed Parent Company Financial Information (tables)
Condensed Parent Company Financial Information - Balance Sheets (details)
Condensed Parent Company Financial Information - Statements Of Cash Flows (details)
Condensed Parent Company Financial Information - Statements Of Operations (details)
Deposits
Deposits (tables)
Deposits - Composition Of Deposits (details)
Deposits - Scheduled Maturities Of Certificates Of Deposit (details)
Derivative Financial Instruments
Derivative Financial Instruments (tables)
Derivative Financial Instruments - Financial Instruments That Are Eligible For Offset On The Balance Sheet (details)
Derivative Financial Instruments - Instruments Eligible For Offset By Counterparty (details)
Derivative Financial Instruments - Schedule Of Derivative Financial Instruments (details)
Employee Benefit Plans
Employee Benefit Plans (details)
Fair Value Measurements
Fair Value Measurements (tables)
Fair Value Measurements - Additional Information About Financial Assets Measured At Fair Value (details)
Fair Value Measurements - Assets And Liabilities Measured At Fair Value On Recurring Basis (details)
Fair Value Measurements - Estimated Fair Values Of Financial Instruments (details)
Fair Value Measurements - Key Economic Assumptions Used In Measuring Fair Value (details)
Fair Value Measurements - Unobservable Inputs Used In Fair Value Of Assets On A Nonrecurring Basis (details)
Fair Value Measurements - Unobservable Inputs Used In The Fair Value Measurement (details)
Goodwill And Intangibles
Goodwill And Intangibles (tables)
Goodwill And Intangibles - Carrying Amount Of Core Deposit And Client Relationship Intangibles (details)
Goodwill And Intangibles - Carrying Amount Of Goodwill (details)
Goodwill And Intangibles - Estimated Amortization Expense (details)
Goodwill And Intangibles - Narrative (details)
Income Taxes
Income Taxes (tables)
Income Taxes - Change In Unrecognized Tax Benefits (details)
Income Taxes - Deferred Tax Assets (details)
Income Taxes - Income Tax Attributable To Continuing Operations (details)
Income Taxes - Narrative (details)
Income Taxes - Reconciliation Of Income Tax Rate To Effective Tax Rate (details)
Investment Securities
Investment Securities (tables)
Investment Securities - Amortized Costs And Fair Values Of Investment Securities (details)
Investment Securities - Mortgage-back Securities Maturity Summary (details)
Investment Securities - Net Losses Recognized On Investment Securities (details)
Investment Securities - Unrealized Losses On Investment Securities (details)
Junior Subordinated Notes Issued To Capital Trusts
Junior Subordinated Notes Issued To Capital Trusts (details)
Junior Subordinated Notes Issued To Capital Trusts (tables)
Lease Commitments And Rental Expense
Lease Commitments And Rental Expense (details)
Lease Commitments And Rental Expense (tables)
Lease Investments
Lease Investments (tables)
Lease Investments - Income From Lease Financing (details)
Lease Investments - Lease Investments By Categories (details)
Lease Investments - Minimum Lease Payments Receivable (details)
Lease Investments - Residual Values For Leases (details)
Loans
Loans (tables)
Loans - Accretable Yield For Loans Acquired And Accounted For Under Asc Topic 310-30 (details)
Loans - Activity In Allowance For Loans And Lease Losses (details)
Loans - Aging Of Recorded Investment In Past Due Loans By Class (details)
Loans - Allowance For Credit Losses (details)
Loans - Loans Acquired Through Business Combination (details)
Loans - Loans Individually Evaluated For Impairment (details)
Loans - Loans Restructured (details)
Loans - Narrative (details)
Loans - Non-accrual Loans And Loans Past Due (details)
Loans - Recorded Investment In Loan Classes Based On Payment Activity (details)
Loans - Risk Category Of Loans By Class (details)
Loans - Schedule Of Loans (details)
Loans - Type Of Modification For Loans That Have Been Restructured (details)
Long-term Borrowings
Long-term Borrowings (tables)
Long-term Borrowings - Narrative (details)
Long-term Borrowings - Schedule Of Long-term Borrowings (details)
Long-term Borrowings - Schedule Of Principle Payments On Long-term Borrowings (details)
Operating Segments
Operating Segments (details)
Operating Segments (tables)
Preferred Stock
Preferred Stock (details)
Premises And Equipment
Premises And Equipment (details)
Premises And Equipment (tables)
Regulatory Matters
Regulatory Matters (details)
Regulatory Matters (tables)
Restrictions On Cash And Due From Banks
Restrictions On Cash And Due From Banks (details)
Short-term Borrowings
Short-term Borrowings (tables)
Short-term Borrowings - Narrative (details)
Short-term Borrowings - Schedule Of Short-term Borrowings (details)
Significant Accounting Policies
Significant Accounting Policies (policies)
Significant Accounting Policies (tables)
Significant Accounting Policies - Narrative (details)
Significant Accounting Policies - Reconciliation Of Number Of Shares Used In Calculation Of Earnings Per Common Share(details)
Stock Incentive Plans
Stock Incentive Plans (tables)
Stock Incentive Plans - Narrative (details)
Stock Incentive Plans - Options Granted (details)
Stock Incentive Plans - Restricted Shares (details)
Stock Incentive Plans - Stock Options Outstanding (details)
Subsequent Events
Subsequent Events (details)
Ticker: MBFI
CIK: 1139812
Form Type: 10-K Annual Report
Accession Number: 0001139812-18-000017
Submitted to the SEC: Fri Feb 23 2018 6:33:12 PM EST
Accepted by the SEC: Mon Feb 26 2018
Period: Sunday, December 31, 2017
Industry: National Commercial Banks

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