This week’s Stock of the Week is a strong regional bank that has plenty of room to grow.

MB Financial Inc. (MBFI) bulked up through acquisitions after the financial crisis and has made itself the premier Chicago-based commercially focused bank, with 95 offices in the Chicago area.

In business since 1911, MB Financial now has $20 billion in total assets and is a midcap stock, with market value of $3.2 billion. This gives it plenty of room to grow both by increasing its focus on the commercial sector in the Midwest and by taking market share from larger competitors—which still dominate Chicago-area loans but lack MB Financial’s strong regional focus and understanding of regional business, especially small to midsized businesses.

The stock recently faced some headwinds because the bank added to its loan-loss provision in the second quarter. But the reason it did that was a positive one—very strong loan growth. Revenue was $921 million in 2016 and is likely to grow to $998 million this year and $1.18 billion in 2018. The dividend of $0.84/share/yr. recently yielded 1.9% and appears secure.

Fiscal year: December. Earnings per share: 2018 est./$2.88…2017 est./$2.46…2016/$2.34.

Lisa A. Welch is senior portfolio manager, Manulife Asset Management, and portfolio manager of the $1.8 billion John Hancock Regional Bank Fund (FRBAX), Boston.

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