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MBT Financial Corporation Announces Completion of $14 Million Private Placement
Posted: 12/23/2013 | Castle Creek

MONROE, Mich.–(GLOBE NEWSWIRE)–MBT Financial Corp., (Nasdaq:MBTF), (the “Company”), announced today that it entered into securities purchase agreements to sell $14 million of common stock through the issuance of 3,294,118 shares, at a price of $4.25 per share, to two institutional investors. Castle Creek Capital Partners IV, LP (“Castle Creek”) and Patriot Financial Partners II, L.P. (together with Patriot Financial Partners Parallel II, L.P., “Patriot”), each agreed to invest $7.00 million in the Company in exchange for 1,647,059 newly issued shares of the Company’s common stock in a private placement transaction, under separate securities purchase agreements.

The Company received today $7.00 million through the issuance and sale of 1,647,059 shares of common stock to Patriot and $4.25 million through the issuance and sale of 1,000,000 shares of common stock to Castle Creek. Under the terms of its agreement with the Company, Castle Creek is anticipated to complete, subject to certain regulatory approvals, the purchase of an additional 647,059 shares in exchange for $2.75 million sometime during the first quarter of 2014.

The Company also announced it will amend its registration statement currently pending with the Securities and Exchange Commission to provide for a rights offering to existing shareholders of the Company of $6.00 million of common stock at the same per share price of $4.25 per share. The Company expects the rights offering will begin, subject to completion of the registration of the shares with the Securities and Exchange Commission, following the completion of the remaining sale of common stock to Castle Creek under its securities purchase agreement sometime during the first quarter of 2014. Castle Creek and Patriot have agreed, subject to negotiation of a mutually satisfactory standby purchase agreement, and compliance with any applicable laws, to fully participate in the rights offering and to purchase any shares of common stock that remain unsubscribed in the rights offering, subject to a limitation on each of their ownership in the Company of 9.9% of the outstanding common stock. Donnelly Penman & Partners is the placement agent (the “Agent”) for both the private placements and the rights offering.

Doug Chaffin, President and CEO stated: “Over the past three years our company has been very focused on preserving capital, maintaining liquidity, improving asset quality, improving earnings and reducing our level of nonperforming assets. While doing so, we have maintained our strong focus on serving our customers and communities. We are completing this private placement of our common stock to raise $14.00 million and will conduct a rights offering to provide our shareholders an opportunity to purchase our common stock at the same price and to raise an additional $6.00 million. This private placement and our planned rights offering have been authorized by our board of directors to improve our capital position and to provide additional capital for our bank subsidiary. We are very pleased that Castle Creek and Patriot, two very well respected institutional investors in community banks, have chosen to make a significant investment in MBT Financial Corp. We feel their long term commitment to our company positions us well as we evaluate our opportunities for future growth.”*

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*The statement quoted above was made by an executive of a Castle Creek portfolio company.

The portfolio company executive has not received compensation for the above statement and this statement is solely his opinion and representative of his experience with Castle Creek. Other portfolio company executives may not necessarily share the same view. An executive in a Castle Creek portfolio company may have an incentive to make a statement that portrays Castle Creek in a positive light as a result of the executive's ongoing relationship with Castle Creek and any influence that Castle Creek may have or had over the governance of the portfolio company and the compensation of its executives. It should not be assumed that Castle Creek's investment in the referenced portfolio company has been or will ultimately be profitable.