MNC Financial Inc. said yesterday that it will reinstate the dividends on its preferred stock and will pay the $15.5 million of preferred stock dividends that have been in arrears. MNC stopped paying all its dividends in the fourth quarter of 1990, citing growing losses primarily from the banking company's commercial real estate portfolio.
MNC, which is awaiting approval from regulators and shareholders on its acquisition by NationsBank Corp., said it will pay holders of Series CC adjustable rate cumulative preferred stock 80 cents a share, while holders of the Series DD stock will receive 77.5 cents a share. The payments will be made March 31 to preferred stockholders of record on March 29.
Assuming the merger goes forward, NationsBank would have become responsible for paying all dividends in arrears. A company spokesman said MNC has made no decision about reinstating its common stock dividend, which was 29 cents a share when it was last paid in the third quarter of 1990.