Hanover Loses $31 Million; Drops Dividend

Hanover Capital Holdings lost $31 million, or $3.83 per share, in the third quarter, and the company said it will not pay a third quarter dividend.Hanover said the loss primarily reflects a $30.2 million impairment expense in the fair value of the company's subordinate MBS portfolio. The company also saw net interest income decline by $1.5 million due to higher financing costs under a new fixed-term credit facility the company established in August. John Burchett, president and CEO, said the company's board did not declare a dividend "due to continued uncertainties in the mortgage industry, the current interest rate environment and our net loss for the quarter."