Midwest Banc to sell $85.5 mil stake to Treasury

Midwest Banc Holdings Inc., the Illinois banking company that lost 76 percent of its market value this year, plans to sell $85.5 million in preferred stock to the U.S. Treasury.

The bank will also sell the government warrants to buy $12.8 million in stock, with proceeds from both sales used to strengthen the company's balance sheet, the Melrose Park, Illinois-based bank said in a statement distributed by Business Wire today. Separately, the company posted a third-quarter loss of $159.7 million.