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10 Midwest Bank Stocks Finally Paying Off

Stock quotes in this article: BAC, C, JPM, WFC, HBAN, FITB, KEY, USB, TCB, ASBC, FMER, CRBC, MBFI, FFBC 

7. MB Financial

Shares of MB Financial (MBFI) of Chicago closed at $21.42 Friday, returning 25% year-to-date, after pulling back 1% during 2011.

The company last Wednesday made good on CEO Mitchell Geiger's promise to repaying $196 million in federal bailout funds received in December 2008 through the Troubled Assets Relief Program, or TARP, in a "shareholder-friendly" way, announcing it had fully repaid the government, "with cash on hand."

MB Financial earned $28.3 million, or 71 cents a share during 2011, increasing from $10.1 million, or 39 cents a share, during 2010, as credit expenses declined. The 2010 results masked some of the improvement, since they included $62.6 million in bargain purchase gains, on failed institutions acquired from the Federal Deposit Insurance Corp.

FIG Partners analyst Brian Martin rates MB Financial "Outperform," with a $21 price target, saying in January that the company's fourth-quarter "highlights included a return to loan growth after a period of contraction, an uptick in the margin, and continued improvement in credit quality." Martin estimates that MBFI will earn $1.50 a share in 2012, followed by EPS of $1.80 during 2013.

The shares trade for 1.5 times tangible book value, and for 14 times the consensus 2012 EPS estimate of $1.49. The consensus 2013 EPS estimate is $1.74.

Interested in more on MB Financial? See TheStreet Ratings' report card for this stock.

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