MBHI Midwest Banc Hlds (MM)

Midwest Banc Holdings Inc. (MBHI) will likely fail and be placed into Federal Deposit Insurance Corp. receivership late Friday because of undercapitalization, according to a Securities and Exchange Commission filing Thursday from the bank holding company.

The bank, which has $3.18 billion in assets and $2.42 billion in deposits, said that the Federal Reserve Bank rejected its capital plan March 25 and that it does not expect to reach capital requirements by the May 13 Prompt Corrective Action Directive deadline.

Shares of Midwest Bank fell 16% to 18 cents a share in after-hours activity following a 17.3% decline on the day.

-Wallace Witkowski; 415-439-6400; AskNewswires@dowjones.com