Montgomery County Bankshares, Inc. and Montgomery Bank & Trust Announce Completion of Successful Capital Raise

VIDALIA, Ga., Jan. 3, 2011 /PRNewswire/ -- 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 and 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 County Bankshares, Inc. and Montgomery Bank & Trust in connection with the transaction.  Nelson Mullins Riley & Scarborough LLP served as counsel to PFGBI.  

About Montgomery County Bankshares, 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.

SOURCE Montgomery County Bankshares, Inc.