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.

Subscribe Now

Access to authoritative analysis and perspective and our data-driven report series.

14-Day Free Trial

No credit card required. Complete access to articles, breaking news and industry data.