Tri-Valley Bank in San Ramon, Calif., plans to raise $1.35 million in a private placement of its common stock.
The $103 million-asset bank has agreed to sell about 3.4 million shares to three private investors, for 40 cents per share. Tri-Valley identified one investor, Gregory Solsrud, who agreed to buy about 3.1 million of the total offering.
After the closing, existing shareholders can exercise anti-dilution rights and purchase up to an additional 814,123 shares, for an additional $325,000, or 40 cents per share.
Proceeds from the offering will allow Tri-Valley to exceed its Tier 1 leverage ratio requirements, the bank said in a Tuesday news release. The investments have received approval from Tri-Valley's shareholders.
In December, Tri-Valley reached agreements to raise $2.5 million through a private placement.
Tri-Valley in July reported second-quarter net income of $39,000, compared to a net loss of $53,000 in the first quarter.