Fenton, Mich.-based Fentura Financial Inc. said Oct. 17 that it completed the initial closing of its previously announced $25.0 million private placement.

The company sold 850,668 shares at $22.00 apiece to accredited investors for gross proceeds of about $18.7 million.

The company expects to use the net proceeds from the offering to invest in subsidiary State Bank to allow for continued organic growth, opportunistic strategic growth, support regulatory capital ratios and other general corporate purposes.

Donnelly Penman & Partners Inc. acted as the sole placement agent for the offering.