Jefferies Reiterates Hold on MB Financial (MBFI) Following 4Q

Jefferies reiterated a Hold rating on MB Financial (NASDAQ: MBFI), and cut the price target to $31.00 (from $35.00), following the company's 4Q earnings report. Mortgage banking had a tough 4Q due to higher interest rates, and seasonality, but this also drove a decline in incentive compensation. Overall, mortgage banking revenues fell 13% Q-Q, but were accompanied by a 7% drop in total expenses. While MBFI's spread income was better than expected, it was helped by elevated discount accretion and $1.5mm in re-accrual interest from resolved NPLs beyond what would normally be expected.

Analyst Emlen Harmon commented, "We hold estimates stable following 4Q15 results as a lower starting point on expenses offsets weaker fee income and some transitory benefits in NII that should run-off over time. Loan growth prospects appear solid, though could be under seasonal pressure in 1Q."

For an analyst ratings summary and ratings history on MB Financial click here. For more ratings news on MB Financial click here.

Shares of MB Financial closed at $28.24 yesterday.

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