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New Holding Company Invests in Montgomery Bank
Monday, 03 January 2011

January 3--  A newly created bank holding company is investing more than $10 million and taking a controlling interest in Montgomery Bank and Trust.

Combined with over $4 million from local investors, Montgomery Bank President Trae Dorough says the merger with PFGBI, LLC of McDonough provides the bank with capital needed to better serve the community.

"This puts some energy back into what we can do for the bank and the community and hopefully the salvation of the jobs and the devastation it would have done to the community is behind us," Dorough said.

ImageTrae Dorough with PFGBI investors Mike Gunter and Dan McSwain.

Native Vidalian Dan McSwain is among the leaders of the new holding company.

"I'm sold on this area.  I like the bank, the people here and the response of the people who were willing to put money in the bank.  It was because of that we were willing to make this investment here. 

This bank deals with the same problems that other banks do where real estate values shot way up and all.  I think we're going to see things pick back up again and I think it will be a great future for the bank," McSwain observed on a visit to Vidalia Monday.

The infusion of new money helps Montgomery Bank avoid the fate of Vidalia's Darby Bank which was closed and reopened under new ownership last year by the Federal Deposition Insurance Corporation.

Joe Brannen with the Georgia Bankers Association says this is a first for troubled Georgia banks.

"This is a very positive move by the investors to invest in Montgomery County Bank.  We were delighted to see it.  It's the first we understand of any bank like Montgomery Bank which has been troubled by the residential real estate market.  We think it's a sign of the times and we hope it's a new move by investors to invest in other community banks," he said.

The new board of directors of Montgomery Bank and Trust includes Chairman Pete Robinson, head of the lobbying arm of the Atlanta law firm Troutman Sanders and among the leaders of the transition team for Governoir Nathan Deal.  State Representative Greg Morris of Vidalia is vice-chairman.  Other members are:

Dorough, Trae                   Director (President/CEO)

Coleman, Larry                  Director

Moses, Lloyd                     Director

Peterson III, Tom             Director

Robison, John                    Director

Peterson, Thomas A.      Director

Fulmer, Mary Jeanne     Director

Peterson, William            Director

Price, Aubrey Lee            Director

Gunter, Mike                     Director

Champion, Beccy             Director

The news release from Montgomery Bank says:

Montgomery County Bankshares, Inc. and its wholly-owned subsidiary, Montgomery Bank & Trust, today announced the completion of a successful capital raise on December 31, 2010. Montgomery County Bankshares, Inc. raised approximately $14.1 million through the combination of a sale of common stock to PFGBI, LLC, a newly-created bank holding company comprised of individual investors, and a private placement to other investors in the local community. As a result of the transaction, PFGBI acquired a controlling interest in Montgomery County Bankshares, Inc. PFGBI also received a warrant to purchase additional shares of common stock as part of its investment. Substantially all of the proceeds of this transaction will be injected into the Bank and will significantly increase the Bank's capital. The transaction was completed after the receipt of shareholder and regulatory approval.

Trae Dorough, President and Chief Executive Officer of Montgomery Bank &. Trust stated that "we are very pleased by the successful capital raise, and we are happy for our customers, as well as the communities of Ailey and Vidalia, Georgia. We welcome our new investors into our banking family arid are very appreciative of the support demonstrated by the investors in our local community." Pete Robinson, Chairman of the Board of Directors, stated that "this transaction brings to a close a difficult year for the Company and Bank, I want to thank our long-time shareholders and customers for sticking with us, and we look forward to serving you in the future." Lee Price, general partner of PFGBI stated "We are excited about the opportunity this investment presents us. We are grateful to our investors and advisors for their commitment during what has been a. complex regulatory process. We look forward to working with the Bank to manage its non-performing assets and return to profitability as soon as possible."

Troutman Sanders LLP represented Montgomery Comity Bankshares, Inc. and Montgomery Bank & Trust in connection with the transaction. Nelson Mullins Riley & Scarborough LLP served as counsel to PFGBI. 

About Montgomery County Biankshares, Inc.

Montgomery County Bankshares, Inc. is the bank holding company for Montgomery Bank & Trust, a Georgia state-chartered bank with approximately $230 million in assets as of December 31, 2010. Montgomery Bank & Trust operates through three branches located in Vidalia and Ailey, Georgia. 

 

 

 
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