MELROSE PARK, Ill.--(BUSINESS WIRE)-- Midwest Banc Holdings, Inc. (NASDAQ:MBHI), the holding company for Midwest Bank and Trust Company (the "Bank" or "Midwest Bank"), announced results for the third quarter of 2009. The company recorded a net loss of $41.3 million for the third quarter of 2009 compared to a net loss of $159.7 million in the third quarter of 2008, and a net loss of $76.5 million for the second quarter of 2009. On a per share basis, net loss per share for the quarter was $1.52, compared to a net loss per share of $5.76 in the third quarter of 2008 and net loss per share of $2.78 in the second quarter of 2009. Results for the third quarter include a $37.5 million provision for credit losses, which increased the allowance for loan losses to 3.4 percent of loans from 2.5 percent at June 30, 2009. The company also completed its annual goodwill impairment study as of September 30, 2009 and determined that goodwill was not impaired.

"As a result of great effort, foresight, and aggressive action by management, as of September 30, 2009 our Bank remains 'well-capitalized' by all regulatory measures," said Roberto R. Herencia, chief executive officer. "While significantly increasing the loan loss provision, our Bank also maintained its 'well-capitalized' status through aggressive cost-cutting actions, loan portfolio reductions and a capital contribution from the holding company."

"We have improved the quality of the Bank's balance sheet over the past two quarters through building of loan loss reserves, repositioning of the investment portfolio to provide an extremely high level of liquidity and re-assessing the valuation of our deferred tax assets, while maintaining our Bank's regulatory capital ratios as we execute a complex and comprehensive capital plan."