MBank in Gresham, Ore., said a local private investor group would assist with a planned recapitalization.
MB Acquisition Bancorp agreed to buy $20 million to $30 million of newly issued common stock to help the $201.2 million-asset bank meet the minimum capital ratio requirements in its regulatory orders. The investor group is led by Alexander "Zan" Hamilton, a former Credit Suisse executive in Portland, Ore. The deal is subject to formal investor commitments and regulatory approvals, MBank said Tuesday.
MBank received a prompt corrective action in November, requiring it to sell stock to or sell itself to raise capital to a level outlined in a cease-and-desist order. The C&D required a Tier 1 capital ratio of at least 10%. MBank had a Tier 1 ratio of 5.95% at Dec. 31.