Tri-Valley in California Raising $2.5M in Private Placement

Tri-Valley Bank in San Ramon, Calif., plans to raise $2.5 million through a private placement of common stock.

The $98 million-asset bank said in a press release Thursday that it agreed to sell nearly 6.1 million shares of common stock, along with warrants to buy another 2 million shares at 33 cents each, to Stephen Taylor Jr. for $2 million. The bank also agreed to sell about 1.5 million shares without warrants for $500,000 to two, unnamed individuals, including one of its directors.

Tri-Valley said the sales should raise its Tier 1 leverage ratio above 10%.

The transaction will also boost Taylor's ownership in the bank to about 18%; that stake could increase to nearly 24% if he exercises the warrants.

"This investment signals a vote of confidence in the future of the bank," Arnold Grisham, the bank's chairman, president and chief executive, said in the release. "This capital increase will improve our regulatory capital levels and help us better serve our customer's borrowing needs as we continue to focus on providing banking services to our local market with great customer service."

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