MBT Financial (MBTF) in Monroe, Mich., has been freed from a consent order under which it had been operating for the last four years.

The Federal Deposit Insurance Corp., and the Office of Financial and Insurance Regulation of the state of Michigan entered into a consent order with MBT on July 12, 2010 requiring the bank to improve its capital position. At the time of the consent order, the bank's Tier 1 leverage capital was 6.5% while MBT's total risk-based capital ratio was 10.26%.

Within 90 days of the consent order, the $1.2 billion-asset MBT was supposed to raise its Tier 1 leverage ratio and total risk-based capital ratio to a minimum of 8% and 11%, respectively.

MBT struggled for several years to meet the demands of the consent order. Therefore, in October 2013, the bank planned a $20 million common stock offering to provide additional capital to its subsidiary, Monroe Bank & Trust.

The institutional investors Castle Creek Capital Partners and Patriot Financial Partners each agreed in December to buy 1.6 million shares of MBT's stock at $4.25 each. The bank also sold another $6 million of stock to existing shareholders.

This transaction helped to push MBT's Tier 1 leverage ratio to 8.6% and its total risk-based capital ratio to 14.8% as of March 31.

"We remain confident of our outlook for the future, and have demonstrated this confidence with the recent opening of our new mortgage center in downtown Monroe," said MBT Chief Executive Doug Chaffin, in a news release. The company also recently opened a new loan production and wealth management office in downtown Tecumseh, marking its entry into Lenawee County, Chaffin said.

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