More banks get money

Nine more banks said their applications to sell preferred stock to the Treasury Department were approved. They will receive a total of $133.4 million in taxpayer capital.

Cardinal Financial Corp., which has headquarters in Tysons Corner, Va., said it won approval for $41.2 million in government investment. Cardinal Financial posted a loss of $4.41 million for the third quarter, compared to a loss of $606,000 in the same period a year ago. It cited higher loan-loss provisions and a writedown on its investment in Fannie Mae, the government sponsored mortgage company.

The bank, in the suburbs of Washington, D.C., had a loss of $1.49 million for the first nine months, versus a loss of $3.1 million in the same period of 2007.

Intervest Bancshares Corp., of New York, announced that it had been approved to sell $25 million in preferred stock to the government. Its earnings for the third quarter were down nearly 46 percent from the same period last year, in part because of higher loan loss provisions. However, it said its non-performing assets as of Sept. 30 were down 14.6 percent from a year earlier. Intervest has branches in New York and Florida.

MidSouth Bancorp, of Lafayette, La., said it would get $20 million in taxpayer capital. MidSouth's earnings for the third quarter were down 23.9 percent from a year ago, and earnings for the first nine months were down 35 percent. The company attributed the declines primarily to increased spending on expansion.

C&F Financial Corp., based in West Point, Va., also said it would get $20 million. Its earnings for the third quarter were down by nearly 54 percent, because of higher loan-loss provisions and a writedown on its investment in Fannie Mae and Freddie Mac, another government sponsored mortgage company.

The Treasury Department plans to buy $250 million of preferred stock in U.S. banks as an economic stabilization measure under the $700 billion Troubled Asset Relief Program. The stock will pay an annual dividend of 5 percent for the first five years and 9 percent thereafter. The Treasury Department also will get warrants to buy common stock in participating banks, which could provide a return to taxpayers if the shares increase in value as the banks' fortunes improve.

First Litchfield Financial Corp., of Litchfield, Conn., said it was approved to sell $10 million in stock to the government. CNB Financial Corp. of Worcester, Mass., will get $7 million, and Northeast Bancorp, of Lewiston, Maine, will get $4.2 million.

First Bankshares Inc., based in Suffolk, Va., said it would get $3.5 million in government capital. Community 1^st Bank, of Roseville, Calif., will get $2.55 million.