Tri-Valley Bank Announces Signing of Stock Purchase Agreement
September 13 2010 - 6:41PM
Business Wire
Tri-Valley Bank (OTCBB:TRVB), announced today the signing of a
Stock Purchase Agreement with a group of investors represented by
Ricky DyBuncio, a Danville resident, who will invest $10,000,000 in
the Bank by purchasing 14,285,714 shares of the Bank’s common
stock, at $0.70 per share. The agreement also contemplates that
these individuals will make a tender offer for up to 1,761,265 of
the Bank’s outstanding shares at $0.70 per share and that
separately the Bank will conduct a rights offering to the existing
shareholders opting not to tender their shares. The transaction is
expected to close by the end of the year and is subject to
regulatory approval.
The investor group is composed of successful businessmen
involved in financial services, real estate development, hotels and
leisure industry and manufacturing. Aside from the new capital, the
group brings in expertise in growing successful businesses,
particularly in the banking industry.
The additional capital is expected to raise the Bank’s leverage
ratio above 20% and allow it to resume growth. With a stronger
balance sheet, the Bank will be in a position to even better
support it’s current and future customers with their banking needs.
Tri-Valley Bank will strive to build long term client relationships
supported by its primary objective of providing Service
Excellence.
The focus of the Bank’s business plan will remain the same, with
emphasis on businesses in the 580/680 corridor. However the Bank
will add greater resources to support diverse needs of the
Tri-Valley area. This is a dynamic region which closely parallels
the best markets in Northern California. In addition to a strong
core base of high net worth individuals, it has a vibrant wine
industry, a high tech consciousness and a preponderance of
professionals and self employed entrepreneurs. Culturally it is
highly educated and serves a growing affluent ethnic population,
which now calls the Tri-Valley area home. The Bank intends to
expand its presence in these areas. Tri-Valley Bank’s enhanced
objective as a community bank is to take a leadership role in
providing quality products and services to its geographic market
area.
Visit Tri-Valley Bank’s website at:
www.trivalleybank.com
This release may contain certain forward-looking statements that
are based on management's current expectations regarding economic,
legislative, and regulatory issues that may impact the Bank's
earnings in future periods and its ability to complete the
transactions described in this release. Forward-looking statements
can be identified by the fact that they do not relate strictly to
historical or current facts. They often include the words
"believe," "expect," "intend," "estimate" or words of similar
meaning, or future or conditional verbs such as "will," "would,"
"should," "could" or "may." Factors that could cause future results
to vary materially from current management expectations include,
but are not limited to, general economic conditions, changes in
interest rates, deposit flows, real estate values, and competition;
the ability to obtain required regulatory approvals, changes in
accounting principles, policies or guidelines; changes in
legislation or regulation; and other economic, competitive,
governmental, regulatory and technological factors affecting the
Bank's operations, pricing, products and services. The Bank
undertakes no obligation to release publicly the result of any
revisions to these forward-looking statements that may be made to
reflect events or circumstances after the date of this press
release or to reflect the occurrence of unanticipated events.