MB Financial Repays All TARP Funds

MB Financial, Inc. MBFI announced today that it repurchased all $196 million of preferred stock which it issued in 2008 to the U.S. Department of Treasury (“Treasury”) as part of the Troubled Asset Relief Program Capital Purchase Program. The repurchase will result in a one-time, non-cash after-tax charge of approximately $1.2 million or $0.02 per common share in the first quarter of 2012, related to unaccreted discount recorded at the date of issuance. The repurchase was made with cash on hand as of the repurchase date. The Company recently entered into a $35 million line of credit agreement with a correspondent bank to supplement holding company cash. The Company expects to enter into negotiations to repurchase the warrant held by Treasury to purchase 506,024 shares of MB stock. Since its investment in December 2008, Treasury has received $32.1 million in preferred stock dividends from the Company, and will receive additional value from the sale of the warrant.