Under the heat of a regulatory order, Tri-Valley Bank in San Ramon, Calif., said Monday that a group of investors has agreed to purchase $10 million of the bank's common stock.
The investor group is led by Ricky DyBuncio of Danville, Calif., who agreed to purchase nearly 14.3 million Tri-Valley shares at 70 cents a share.
The stock was trading at 25 cents a share on Sept. 10, before the purchase announcement.
This is the $82.3 million-asset Tri-Valley's second attempt to raise capital this year. It announced in June that another private investor group had terminated an agreement to purchase $6 million in stock.
In the new agreement, the investors also have the option to make a tender offer for up to 1.76 million shares of the bank's outstanding shares at the same price. As part of the agreement, Tri-Valley will conduct a rights offering to existing shareholders who opt not to tender their shares.
Tri-Valley said the capital-raising effort will boost its leverage ratio, which was 7.94% on June 30, to more than 20%. The consent order issued by regulators May 18 required Tri-Valley to raise its leverage ratio to 12% or more within 90 days. If approved by regulators, the deal is expected to close by the end of the year.