<PAGE> 1
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D. C. 20549
SCHEDULE 13D
UNDER THE EXCHANGE ACT OF 1934
(Amendment No. 4 )
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MB FINANCIAL, INC.
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(Name of Issuer)
COMMON STOCK
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(Title and Class of Securities)
55263D107
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(CUSIP Number)
Richard J. Perry, Jr., Esquire
Perry & Bagheri, P.C.
1826 Jefferson Place, N.W.
Washington, D. C. 20036
(202) 775-8109
--------------
(Name, Address and Telephone Number of Person Authorized to Receive Notices and
Communications)
February 26, 1999
-----------------
(Date of Event which Requires Filing of this Statement)
If the filing person has previously filed a statement on Schedule 13G to report
the acquisition which is the subject of this Schedule 13D, and is filing this
schedule because of Rule 13d-1(b)(3) or (4), check the following box [ ].
Check the following box if a fee is being paid with the statement [ ]. (A fee
is not required only if the reporting person: (1) has a previous statement on
file reporting beneficial ownership of more than five percent of the class of
securities described in Item 1; and (2) has filed no amendment subsequent
thereto reporting beneficial ownership of five percent or less of such class.)
(See Rule 13d-7.)
Page 1 of 15 Pages Exhibit Index at page 14
<PAGE> 2
<TABLE>
<CAPTION>
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CUSIP NUMBER 55263D107 Page 2 of 15 Pages
--- ----
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<S> <C>
1. NAME OF REPORTING PERSON / S.S. OR I.R.S. IDENTIFICATION OF ABOVE
PERSON
Financial Institution Partners, L.P. / 52-1899611
- -------------------------------------------------------------------------------
2. CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP
(a)
(b)
- -------------------------------------------------------------------------------
3. SOURCE OF FUNDS
WC OO
- -------------------------------------------------------------------------------
4. IS DISCLOSURE OF LEGAL PROCEEDING REQUIRED PURSUANT TO ITEMS 2(d)
AND 2(e)
NO
- -------------------------------------------------------------------------------
5. CITIZENSHIP OR PLACE OF ORIGIN
Organized: State of Delaware
- -------------------------------------------------------------------------------
NUMBER OF 6. SOLE VOTING POWER
SHARES
OWNED BY
EACH ----------------------------------------------------------------
REPORTING 7. SHARED VOTING POWER
PERSON WITH
264,338 SHARES
----------------------------------------------------------------
8. SOLE DISPOSITIVE POWER
----------------------------------------------------------------
9. SHARED DISPOSITIVE POWER
264,338 SHARES
- -------------------------------------------------------------------------------
10. AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
264,338
- -------------------------------------------------------------------------------
11. DOES THE AGGREGATE AMOUNT IN BOX 10 EXCLUDE CERTAIN SHARES?
NO
- -------------------------------------------------------------------------------
12. PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (10)
3.8%
- -------------------------------------------------------------------------------
13. TYPE OF REPORTING PERSON
PN
- -------------------------------------------------------------------------------
</TABLE>
Page 2 of 15 Pages
<PAGE> 3
<TABLE>
<CAPTION>
- -------------------------------------------------------------------------------
CUSIP NUMBER 55263D107 Page 3 of 15 Pages
--- ----
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<S> <C>
1. NAME OF REPORTING PERSON / S.S. OR I.R.S. IDENTIFICATION OF ABOVE
PERSON
Hovde Capital, Inc. / 52-1891904
- -------------------------------------------------------------------------------
2. CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP
(a)
(b)
- -------------------------------------------------------------------------------
3. SOURCE OF FUNDS
AF
- -------------------------------------------------------------------------------
4. IS DISCLOSURE OF LEGAL PROCEEDING REQUIRED PURSUANT TO ITEMS 2(d)
AND 2(e)
NO
- -------------------------------------------------------------------------------
5. CITIZENSHIP OR PLACE OF ORIGIN
Incorporated: State of Delaware
- -------------------------------------------------------------------------------
NUMBER OF 6. SOLE VOTING POWER
SHARES
OWNED BY
EACH ----------------------------------------------------------------
REPORTING 7. SHARED VOTING POWER
PERSON WITH
264,338 SHARES
----------------------------------------------------------------
8. SOLE DISPOSITIVE POWER
----------------------------------------------------------------
9. SHARED DISPOSITIVE POWER
264,338 SHARES
- -------------------------------------------------------------------------------
10. AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
264,338 SHARES
- -------------------------------------------------------------------------------
11. DOES THE AGGREGATE AMOUNT IN BOX 10 EXCLUDE CERTAIN SHARES?
NO
- -------------------------------------------------------------------------------
12. PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (10)
3.8%
- -------------------------------------------------------------------------------
13. TYPE OF REPORTING PERSON
CO
- -------------------------------------------------------------------------------
</TABLE>
Page 3 of 15 Pages
<PAGE> 4
<TABLE>
<CAPTION>
- -------------------------------------------------------------------------------
CUSIP NUMBER 55263D107 Page 4 of 15 Pages
--- ----
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<S> <C>
1. NAME OF REPORTING PERSON / S.S. OR I.R.S. IDENTIFICATION OF ABOVE
PERSON
Steven D. Hovde/ ###-##-####
- -------------------------------------------------------------------------------
2. CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP
(a)
(b)
- -------------------------------------------------------------------------------
3. SOURCE OF FUNDS
PF OO
- -------------------------------------------------------------------------------
4. IS DISCLOSURE OF LEGAL PROCEEDING REQUIRED PURSUANT TO ITEMS 2(d)
AND 2(e)
NO
- -------------------------------------------------------------------------------
5. CITIZENSHIP OR PLACE OF ORIGIN
U.S.
- -------------------------------------------------------------------------------
NUMBER OF 6. SOLE VOTING POWER
SHARES
OWNED BY 18,400
EACH ----------------------------------------------------------------
REPORTING 7. SHARED VOTING POWER
PERSON WITH(1)
264,338 SHARES
----------------------------------------------------------------
8. SOLE DISPOSITIVE POWER
18,400
----------------------------------------------------------------
9. SHARED DISPOSITIVE POWER
264,338 SHARES
- -------------------------------------------------------------------------------
10. AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
282,738 SHARES
- -------------------------------------------------------------------------------
11. DOES THE AGGREGATE AMOUNT IN BOX 10 EXCLUDE CERTAIN SHARES?
NO
- -------------------------------------------------------------------------------
12. PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (10)
4.1%
- -------------------------------------------------------------------------------
13. TYPE OF REPORTING PERSON
IN
- -------------------------------------------------------------------------------
</TABLE>
(1) Of the 282,738 Shares beneficially owned by Steven D. Hovde, 264,338 of the
Shares beneficially owned are as controlling shareholder/director of Hovde
Capital, Inc. and 18,400 of the Shares beneficially owned are held directly.
Page 4 of 15
<PAGE> 5
Item 1. Security and Issuer
The class of security to which this statement relates is the common stock
(the "Shares"), of MB Financial, Inc., formerly Avondale Financial Corp. (the
"Issuer"). The address of the principal executive offices of the Issuer is 1200
North Ashland Avenue, Chicago, Illinois 60622.
Item 2. Identity and Background
The persons filing this statement are Financial Institution Partners, L.P.
(the "Limited Partnership"), Hovde Capital, Inc., and Steven D. Hovde, who are
collectively referred to herein as the "Reporting Persons." The Limited
Partnership is a Delaware limited partnership formed for the purpose of
investing in, among other things, the equity securities of various financial
institutions. Hovde Capital, Inc., a Delaware corporation, is the general
partner (the "General Partner") of the Limited Partnership. Steven D. Hovde is
a controlling shareholders of Hovde Capital, Inc.
Attached as Schedule 1 hereto and incorporated by reference herein is a
list containing the principal business and the address of its principal business
and office for the Limited Partnership and the General Partner as well as
information required by (a) through (f) of this Item as to each executive
officer, director and/or controlling person of the General Partner who are
Reporting Persons. The General Partner controls the Limited Partnership.
None of the Reporting Persons or executive officers, directors or
controlling persons of the General Partner has, during the last five years, been
convicted in a criminal proceeding (excluding traffic violations or similar
misdemeanors) or been a party to a civil proceeding of a judicial or
administrative body of competent jurisdiction and as a result of such proceeding
was or is subject to a judgment, decree or final order enjoining future
violations of, or prohibiting or mandating activities subject to, federal or
state securities laws or finding of any violation with respect to such laws.
The Reporting Persons do not believe that they constitute a "group" within
the meaning of Section 13(d)(3) of the Securities Exchange Act of 1934, as
amended. Nevertheless, the Reporting Persons are making this filing because of
the possibility that they may be deemed a group, although each of the Reporting
Persons disclaims any membership in, and the existence of, such a group.
Neither the making of this filing nor any statement contained herein shall be
deemed to be an admission by any of the Reporting Persons that a group exists.
Page 5 of 15
<PAGE> 6
Item 3. Source and Amount of Funds or Other Consideration
Information regarding the source and amount of funds used by the Reporting
Persons in acquiring beneficial ownership of their Shares is set forth in
Schedule 2 attached hereto and incorporated herein by reference.
Item 4. Purpose of Transaction
The Reporting Persons have acquired the Shares for investment purposes and
as set forth below:
(a) Each of the Reporting Persons may independently acquire additional
Shares or dispose of some or all of its Shares.
(b) None.
(c) None.
(d) None.
(e) None.
(f) None.
(g) None.
(h) None.
(i) None.
(j) None.
Item 5. Interest in Securities of the Issuer
(a), (b) Schedule 3 hereto, which is incorporated by reference herein,
sets forth, as of March 4, 1999, information relating to the aggregate number of
Shares of the Issuer and the percentage of the outstanding Shares of the Issuer
as of such date (based upon information provided by the Issuer, there are
6,986,172 Shares outstanding as of that date) as to each of the Reporting
Persons. With respect to the Shares set forth on Schedule 3, by virtue of its
control over the Limited Partnership, all decisions regarding voting and
disposition of the Shares beneficially owned by the Limited Partnership are made
by the General Partner acting through its chief executive officer or president.
As such, the Limited Partnership and the General Partner share voting and
investment power with respect to the Shares. Neither the General Partner, its
executive officers, directors or controlling persons beneficially
Page 6 of 15 Pages
<PAGE> 7
owns any Shares personally or otherwise, except for the Shares beneficially
owned by Steven D. Hovde.
(c) Schedule 4 hereto, which is incorporated by reference herein,
describes, as of March 4, 1999, transactions in the Shares effected during the
past sixty (60) days by the Reporting Persons.
(d) None.
(e) The Reporting Persons ceased beneficial ownership of more than five
percent of the Shares on February 26, 1999.
Each of the Reporting Persons disclaims beneficial ownership of Shares
beneficially owned by any of the other Reporting Persons.
Item 6. Contracts, Arrangements, Understandings or Relationships with Respect
to Securities of the Issuer
None.
Item 7. Materials to be filed as Exhibits
Exhibit A - Consent Agreement pursuant to 17 C.F.R. 13d-1(f)(1)
Exhibit B - [OMITTED - - FILED PURSUANT TO REQUEST FOR CONFIDENTIAL TREATMENT
(Incorporated by reference to Amendment No. 1, filed with the
Securities and Exchange Commission (the "Commission") on November
30, 1998)]
Exhibit C - Customer Agreement between NationsBanc Montgomery Securities and
Financial Institution Partners, L.P. (Incorporated by reference
to Amendment No. 1, filed with the Commission on November 30,
1998)
Exhibit D - Prime Broker Agreement between NationsBanc Montgomery Securities
and Financial Institution Partners, L.P. (Incorporated by
reference to Amendment No. 1, filed with the Commission on
November 30, 1998)
Exhibit E - Partnership Agreement between NationsBanc Montgomery Securities
and Financial Institution Partners, L.P. (Incorporated by
reference to Amendment No. 1, filed with the Commission on
November 30, 1998)
Exhibit F - Customer Agreement between NationsBanc Montgomery Securities and
Steven D. Hovde. (Incorporated by reference to Amendment No. 1,
filed with the Commission on November 30, 1998)
Exhibit G - Prime Broker Agreement between NationsBanc Montgomery Securities
and Steven D. Hovde. (Incorporated by reference to Amendment No.
1, filed with the Commission on November 30, 1998)
Page 7 of 15
<PAGE> 8
Signatures
After reasonable inquiry and to the best of his/its knowledge and belief,
each of the undersigned Reporting Persons certifies that the information set
forth in this statement with respect to him/it is true, complete and correct.
FINANCIAL INSTITUTION PARTNERS, L.P., by its General
Partner, HOVDE CAPITAL, INC.
By: /s/ Eric D. Hovde
-------------------------------------------------
Eric D. Hovde
Its: President
HOVDE CAPITAL, INC.
By: /s/ Eric D. Hovde
-------------------------------------------------
Eric D. Hovde
Its: President
STEVEN D. HOVDE
/s/ Steven D. Hovde
-------------------------------------------------
Dated: 3/4/99
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Page 8 of 15
<PAGE> 9
Schedule 1
INFORMATION RELATING TO REPORTING PERSONS
<TABLE>
<CAPTION>
Principal Business and
Address of Principal Business
Name or Principal Office
---- ------------------------------
<S> <C>
Financial Institution Partners, L.P. Limited partnership formed to make
investments primarily in equity
securities of financial institutions.
1629 Colonial Parkway
Inverness, Illinois 60067
Organized: State of Delaware
Hovde Capital, Inc. Corporation formed to serve as the
general partner of Financial Institution
Partners, L.P.
1629 Colonial Parkway
Inverness, Illinois 60067
Incorporated: State of Delaware
Steven D. Hovde Investment banker
Hovde Financial, Inc.
1629 Colonial Parkway
Inverness, Illinois 60067
</TABLE>
Page 9 of 15
<PAGE> 10
INFORMATION RELATING TO EXECUTIVE OFFICERS, DIRECTORS AND/OR CONTROLLING
PERSONS
<TABLE>
<CAPTION>
NAME PRINCIPAL OCCUPATION
ADDRESS BUSINESS ADDRESS CITIZENSHIP
- ------- -------------------- -----------
<S> <C> <C>
Steven D. Hovde(2) Investment banker U.S.
1629 Colonial Parkway Hovde Financial, Inc.
Inverness, Illinois 60067 1629 Colonial Parkway
Inverness, Illinois 60067
Investment banking firm
Eric D. Hovde (3) Investment banker U.S.
1826 Jefferson Place, N.W. Hovde Financial, Inc.
Washington, D.C. 20036 1826 Jefferson Place, N.W.
Washington, D.C. 20036
Investment banking firm
</TABLE>
(2) Steven D. Hovde is affiliated with the following Reporting Persons:
Chairman, CEO of Hovde Capital, Inc.
(3) Eric D. Hovde is affiliated with the following Reporting Persons: President
of Hovde Capital, Inc.
Page 10 of 15
<PAGE> 11
SCHEDULE 2
The following table sets forth the amount and source of funds used by each
Reporting Person in acquiring the Shares beneficially owned by it.
<TABLE>
<CAPTION>
Amount
Originally
Total Financed/ Source of
Name Consideration Current Balance Funds
- -------------------------------------------------------------------------------
<S> <C> <C> <C>
Financial $3,562,947.19 $1,247,031.52/ Working Capital/
Institution $2,315,915.67 Margin Account*
Partners, L.P.
Hovde Capital, $3,562,947.19 $1,247,031.52/ Working Capital/
Inc. $2,315,915.67 Margin Account of
Affiliate*
Steven D. Hovde $287,500.00 $100,625.00/ Working Capital/
$186,875.00 Margin Account **
</TABLE>
- -----------------------------------------------------
* $2,315,915.67 was financed through a margin account with NationsBanc
Montgomery Securities at Federal Funds rate +5/8.
** $186,875.00 was financed through a margin account with NationsBanc Montgomery
Securities at Federal Funds rate +5/8.
Page 11 of 15
<PAGE> 12
SCHEDULE 3
The following table sets forth the number and approximate percentage of
Shares beneficially owned by each of the Reporting Persons. Each of the
Reporting Persons has shared power to vote or to direct the vote and to dispose
or to direct the disposition of the Shares of which each of them, respectively,
possesses beneficial ownership.
<TABLE>
<CAPTION>
Approximate
Name Number of Shares Percentage
- ---- ---------------- -----------
<S> <C> <C>
Financial Institution 264,338 3.8%
Partners, L.P.
Hovde Capital, Inc. 264,338 3.8%
Steven D. Hovde 18,400 0.3%
- -------------------------------------------------------------------------------
Aggregate Shares Held by 282,738 4.1%
Reporting Persons
</TABLE>
Page 12 of 15
<PAGE> 13
SCHEDULE 4
Description of Transactions in Shares Effected Within 60 Days.
The Reporting Persons had effected the following transactions in the Shares
within sixty (60) days of March 4, 1999:
<TABLE>
<CAPTION>
- -------------------------------------------------------------------------------
Transaction Number of Transaction Transaction Broker
Date Shares Price Type
- -------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Financial 2/16/99 39,032 $14.50 Sell ABN Amro
Institution
Partners, 2/12/99 700 $14.50 Sell Bloomberg
L.P. Tradebook
- -------------------------------------------------------------------------------
Eric D. 2/16/99 7,500 $14.50 Sell ABN Amro
Hovde
- -------------------------------------------------------------------------------
Page 13 of 15
<PAGE> 14
EXHIBIT INDEX
</TABLE>
<TABLE>
<CAPTION>
Page
<S> <C> <C>
Exhibit A- Consent Agreement to 17 C.F.R. 13d-1(f)(1) 15
Exhibit B - [OMITTED - - FILED PURSUANT TO REQUEST
FOR CONFIDENTIAL TREATMENT] (Incorporated
by reference to Amendment No. 1, filed with the
Commission on November 30, 1998)](4)
Exhibit C - Customer Agreement between NationsBanc
Montgomery Securities and Financial Institution
Partners, L.P. (Incorporated by reference to
Amendment No. 1, filed with the Commission on
November 30, 1998)
Exhibit D - Prime Broker Agreement between NationsBanc
Montgomery Securities and Financial Institution
Partners, L.P. (Incorporated by reference to
Amendment No. 1, filed with the Commission on
November 30, 1998)
Exhibit E - Partnership Agreement between NationsBanc
Montgomery Securities and Financial Institution
Partners, L.P. (Incorporated by reference to Amendment
No. 1, filed with the Commission on November 30, 1998)
Exhibit F - Customer Agreement between NationsBanc
Montgomery Securities and Steven D. Hovde (Incorporated
by reference to Amendment No. 1, filed with the
Commission on November 30, 1998)
Exhibit G - Prime Broker Agreement between NationsBanc
Montgomery Securities and Steven D. Hovde (Incorporated
by reference to Amendment No. 1, filed with the
Commission on November 30, 1998)
</TABLE>
- ------------------------------------------
(4) Portions of Exhibit 5 have been omitted pursuant to a request for
confidential treatment of information in accordance with Rule 24b-2 of the
Securities and Exchange Act of 1934.
Page 14 of 15
<PAGE> 15
EXHIBIT A
Consent Agreement Pursuant to 17 C.F.R. 13d-1(f)(1)
Each of the undersigned hereby consents and agrees to the filing on behalf
of each of them of the foregoing joint statement on Schedule 13D pursuant to 17
C.F.R. 13d-1(f)(1) with respect to his/its beneficial ownership of the shares of
the Issuer.
FINANCIAL INSTITUTION PARTNERS, L.P., by its General
Partner, HOVDE CAPITAL, INC.
By: /s/ Eric D. Hovde
-------------------------------------------------
Eric D. Hovde
Its: President
HOVDE CAPITAL, INC.
By: /s/ Eric D. Hovde
-------------------------------------------------
Eric D. Hovde
Its: President
STEVEN D. HOVDE
/s/ Steven D. Hovde
-------------------------------------------------
Dated: 3/4/99
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Page 15 of 15
