Shares of Midwest Banc Holdings Inc. hit another all-time low the day after the western Illinois bank said it would sell $110 million in preferred stock, suspend its quarterly dividend and expects to sharply increase loan-loss reserves this quarter.

The company said the moves are intended to strengthen its balance sheet in response to unfavorable market events and conditions. Mounting credit problems have spurred doubts about the viability of regional banks as many have announced dividend cuts and large capital raisings following similar efforts by many of the nation's biggest banks earlier this year.

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