First Midwest Bank

When Dilution Is A Good Thing

Posted by Rick Stine on August 27, 2009
Banks, Credit Crisis, Credit Markets, Investing / Comments Off

first-midwestFirst Midwest Bank announced a plan today that could increase its shares outstanding by more than 22%, the kind of thing that doesn’t usually make existing shareholders very happy. The impact on the stock? Up six cents or about 0.5%. t

How come? It has to do with a two-prong capital plan for the bank which would raise its important Tier One capital ratio and lower interest costs.

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