KBRA Comments on the Proposed Acquisition of MB Financial, Inc. (MBFI) by Fifth Third Bancorp (FITB)

Kroll Bond Rating Agency (KBRA) releases a comment on MB Financial, Inc.

• KBRA views the proposed merger favorably for creditors; both MB Financial, Inc.'s MBFI, as well as Fifth Third Bancorp's FITB not rated))). The strategic rationale for the transaction seems clear, with the above average purchase price justified in KBRA's view based on the quality of MBFI's franchise, financial performance and condition.
• Key to achieving financial returns from the transaction are a meaningful amount of projected cost savings, which, given the two institutions' significant Chicago branch overlap, seem reasonable in KBRA's view.
• Beyond materially strengthening FITB's Chicago market deposit share, MBFI's attractive middle-market commercial lending and leasing businesses, if integrated well, should benefit the combined institution's product offerings and customer base. Positively, in this regard, MBFI's CEO has agreed to become the CEO and Chairman of Fifth Third Chicago, with other executives slated to join the combined company as well.

MBFI's and MB Bank's ratings are based on KBRA's Global Bank and Bank Holding Company Rating Methodology published on February 19, 2016.

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KBRA is a full service credit rating agency registered with the U.S. Securities and Exchange Commission as an NRSRO. In addition, KBRA is recognized by the National Association of Insurance Commissioners as a Credit Rating Provider and a certified Credit Rating Agency (CRA) by the European Securities and Markets Authority (ESMA). Kroll Bond Rating Agency Europe Limited is registered with ESMA as a CRA.

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