The deeply troubled Michigan Heritage Bancorp Inc. in Farmington Hills has lost its angel investor.
The $181.6 million-asset company had said April 15 that a private investor would inject enough capital to satisfy regulators. But it said late Monday that the deal has fallen through.
Michigan Heritage never identified the investor or specified the amount it would receive.
"The bank has been in discussions with other potential investors and will continue its efforts to raise capital," Michigan Heritage said in a press release. "The bank has communicated these developments and its ongoing capital raising efforts to its regulators."
Michigan Heritage had an April 15 deadline to boost its capital, either by selling more stock or finding a buyer, under a prompt corrective action it received from the Federal Reserve Board this month.
Regulators have deemed its Michigan Heritage Bank critically undercapitalized. At yearend it had a leverage ratio of 1.61%, a Tier 1 risk-based capital ratio of 1.91% and a total risk-based capital ratio of 3.18%, according to the Federal Deposit Insurance Corp.
The unit has been operating under a written agreement with the Fed and the Michigan Office of Financial and Insurance Regulation since December, when the regulators ordered it to charge off losses identified by examiners and submit plans to improve capital and liquidity.