MB Financial acquires American Chartered for $449 million

CHICAGO - MB Financial announced it will acquire American Chartered Bancorp Inc., the parent company of American Chartered Bank, in a stock and cash transaction valued at approximately $449 million.

American Chartered is a privately-held commercial bank focused on middle-market and emerging middle-market businesses with 15 offices in metropolitan Chicago.

The bank has approximately $2.8 billion in total assets, $2.2 billion in deposits, of which half are non-interest-bearing, and $2 billion in loans.

MB Financial officials said the acquisition will add scale to its commercial banking business.

"The acquisition of American Chartered is consistent with our mission of building Chicagoland's premier commercial bank," said MB Fianncial President and CEO Mitchell Feiger.

"American Chartered brings a strong middle-market commercial banking lending team and client base, an unparalleled core deposit franchise and a proven track record of profitable organic growth."

Approximately $100 million of the transaction will be paid in cash, the company said, with the remainder in MB Financial common stock. The receipt of shares of MB Financial common stock in exchange for American Chartered stock is expected to be tax-free for American Chartered shareholders.

American Chartered Chairman Robert Riter will join the MB Financial board of directors. The deal is expected to close around June 30, 2016, pending regulatory and board of director approvals.

"Our companies have a similar relationship-banking approach and together we will be able to better serve middle-market and emerging middle-market commercial customers in the Chicagoland area. This partnership will provide American Chartered's commercial bankers and customers with access to MB Financial's expanded product suite including, for example, capital markets, treasury management and international banking," Riter said.