SOURCE: Midwest Banc Holdings, Inc.

December 17, 2008 16:45 ET

Midwest Banc Holdings, Inc. Reports Participation in FDIC's Temporary Liquidity Guarantee Program

Customers to Have Non-interest Bearing Deposits 100% Guaranteed Through December 31, 2009

MELROSE PARK, IL--(Marketwire - December 17, 2008) - Midwest Banc Holdings, Inc. (NASDAQ: MBHI) today announced that it will continue to participate in the Federal Deposit Insurance Corporation's Temporary Liquidity Guarantee Program. This Program consists of two components. The first is the Transaction Account Guarantee Program where all non-interest bearing transaction deposit accounts, including all personal and business checking deposit accounts, and NOW accounts, which are capped at a rate no higher than 0.50% are fully guaranteed, through December 31, 2009, regardless of dollar amount. All other deposit accounts continue to be covered by the FDIC's expanded deposit insurance limit of $250,000 through December 31, 2009. The second component is the Debt Guarantee Program, which guarantees newly issued senior unsecured debt.

On December 5, 2008, Midwest announced that it had received an $84.8 million investment from the U.S. Treasury as part of its TARP Capital Purchase Program.

"We are pleased to participate in these government programs that are designed to restore stability and liquidity to the financial markets and provide customers with additional security," said James Giancola, Chief Executive Officer of Midwest Banc Holdings, Inc. "After careful consideration, we believe continuing to participate in the Debt Guarantee Program, which will enable the bank to issue up to 2% of its liabilities in senior unsecured debt, is in the best interests of our shareholders. Given that there is no cost for us to participate unless we decide to issue debt under the program, we wanted to maximize our flexibility to take advantage of business opportunities as they arise. We currently have no plans to issue additional debt."

About Midwest Banc Holdings, Inc.

Midwest Banc Holdings, Inc., with $3.6 billion in assets, provides a wide range of retail and commercial banking services, personal and corporate trust services, securities services and insurance brokerage services in the greater Chicagoland area. The principal operating subsidiaries of Midwest Banc Holdings, Inc. are Midwest Bank and Trust Company and Midwest Financial and Investment Services, Inc. Midwest has 29 banking offices. Midwest is a member of the Allpoint®/STARsf® surcharge-free network giving Midwest customers access to thousands of surcharge-free ATMs nationwide, with over 1,000 ATMs in the Chicagoland area.

Information on Midwest products, services and locations is available at: www.midwestbank.com

Contact Information

  • For further information:
    John B. Pelling, III
    Vice President - Investor Relations
    (708) 498-2013
    Email Contact