Unizan Financial Corp. will post an other-than-temporary, noncash charge of $2.2 million when it reports fourth-quarter results Feb. 18.
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The Canton company said Monday that the charge is related to its holdings of preferred stock from Fannie Mae and Freddie Mac and will amount to 10 cents a diluted share. The perpetual preferred issues are held in the $2.7 billion-asset company's available-for-sale securities portfolio. Before the charge, the decline in the securities' value was recorded as an unrealized mark-to-market loss on securities and considered a reduction to equity.
The charge will not affect total shareholder equity, Unizan said. The value of the shares fell after accounting scandals at the two government-sponsored enterprises.
