After a stock offering fell short of expectations, Sierra Vista Bank (SVBA) in Folsom, Calif., plans to raise about $1.7 million through a securities purchase agreement with Taylor International Fund.
The added capital should allow Sierra Vista to expand its lending practices and to seek growth opportunities in the markets that it serves, the $78 million-asset company said Thursday.
Under the agreement, Taylor International and Stephen Taylor would buy up to roughly 848,700 shares of common stock, including warrants to purchase another 212,100 shares, at $2 per share.
The bank has agreed to appoint a representative of the investors to its board.
Sierra Vista recently raised roughly $2.4 million by selling 1.2 million shares of common stock, though it had planned to bring in $6.5 million.
The transaction should close during the second quarter, Sierra Vista said. Caldwell Securities served as the placement agent in this transaction.