Midwest Banc shares sink after Q3 dividend suspension, charge

miércoles 17 de septiembre de 2008 17:45 CEST
 

Sept 17 (Reuters) - Shares of Midwest Banc Holdings Inc MBHI.O sank to their lowest in a decade on Wednesday, a day after the company suspended its third-quarter dividend and said it will record a non-cash impairment charge related to its exposure to the government-sponsored enterprises.

The company said it will write down all of its $67 million of Fannie Mae FNM.N and Freddie Mac FRE.N preferred securities in the third quarter, adding that it expects to record a non-cash goodwill impairment charge of $80 million during the period.

The company also expects to increase its provision for loan losses to 1.6 percent of total loans at Sept. 30, compared with 0.9 percent at June 30, it said in a statement on Tuesday.

Shares of the Melrose Park, Illinois-based company were down $1.11 at $3.26 in morning trade on Nasdaq. They earlier touched a low of $3.25. (Reporting by Anurag Kotoky in Bangalore; Editing by Himani Sarkar)