Tri-Valley Bank in San Ramon, Calif., is looking to raise roughly $7 million in a private placement that the bank said it would use to support growth and boost its capital levels.
The $71 million-asset company said that it intends to sell 20 million shares at 35 cents a share. Each of the bank's board members has already committed to participating in the offering and the bank's chief executive, David Greiner, said the goal is to sell the remaining shares to members the community.
Interested investors must purchase a minimum of $100,000 worth of stock — the equivalent of 285,714 shares — but sales will be restricted so that no investor owns more than 9.99% of the outstanding stock, the bank said.
"We would like to see local people have this opportunity, rather than a Wall Street investment banker," Greiner said in a news release late Thursday. The offering is expected to close in September.
Tri-Valley also announced its first-quarter earnings on Thursday, reporting a loss of $324,000, an improvement over the $1.3 million it lost in the fourth quarter. The bank, founded in 2005, has yet to turn a quarterly profit, according to Federal Deposit Insurance Corp. data.