A money-losing community bank in Michigan has agreed to recapitalize itself by selling $30 million of stock to an investor group.
The agreement, which was disclosed in a securities filing Friday, would give the group control of the $339 million-asset North Country Financial Corp., which is in Manistique, on the state's upper peninsula.
C. James Bess, who is currently president and chief executive of the holding company, would remain as president and chief operating officer of the subsidiary North Country Bank.
Two members of the group, Paul D. Tobias and Elliot R. Stark, would become the company's chairman and CEO and its executive vice president and chief financial officer, respectively.
North Country has been hit hard by a wave of bad hotel and resort loans.
Through the first half it recorded losses totaling $3.3 million, which left the bank's Tier 1 capital ratio at 1.93%.
