WYOMISSING, Pa., April 23 /PRNewswire-FirstCall/ -- VIST
Financial Corp. (Nasdaq: VIST) announced today that it has entered
into purchase agreements which will raise $5.2 million in new capital through the issuance
of 644,000 shares of common stock to two institutional investors
who specialize in the banking sector, at a price of $8.00 a share.
"While our Board of Directors and Senior Management have full
confidence in the financial strength of VIST Financial, we believe
the ability to raise $5.2 million in
new capital with seasoned bank investors sends a positive message
about our loan loss reserve levels and capital in today's economic
environment," stated Robert D.
Davis, President and Chief Executive Officer. "The
modest capital raise allows us to take advantage of market
opportunities, anticipates new regulatory capital guidelines and
provides us with a capital cushion if the economy does not improve
as expected," Davis added.
"Although we had indications of interest to purchase an
additional 600,000 to 900,000 shares at $8.00, we declined to increase our shares
outstanding," stated Edward C.
Barrett, Executive Vice President and Chief Financial
Officer. "We believe it would not have been in the best
interest of our existing shareholders to unnecessarily dilute their
ownership at the current stock price," he added. "We
anticipate by year end 2010 this placement coupled with the sale of
our interest in First HSA, LLC announced on April 19, 2010 should result in an increase in
our tangible book value per share and only slight earnings per
share dilution," Barrett added.
The two investors are Emerald Advisers, Inc. Lancaster, PA and Battlefield Capital
Management, Valley Forge, PA both
well respected bank investors. Battlefield, managed by
James Weaver, formerly with
Dearden Maguire Weaver & Barrett
is affiliated with Griffin Financial, Reading PA who served as the placement agent
for VIST Financial. The investment by Emerald Advisers, Inc.
is conditioned on the filing and effectiveness of a Form S-3
registration statement covering the 322,000 shares placed with
Emerald. The investment by Battlefield is conditioned on the
Emerald closing. "We are pleased to have both firms as
shareholders and appreciate their confidence in VIST Financial,"
stated Mr. Davis.
VIST Financial is a $1.3 billion
diversified financial services company headquartered in
Wyomissing, PA, offering banking,
insurance, investments and wealth management services throughout
Berks, Southern Schuylkill, Montgomery, Delaware, and Philadelphia Counties. To learn more visit
www.vistfc.com.
This release may contain forward-looking statements with respect
to the Company's beliefs, plans, objectives, goals, expectations,
anticipations, estimates, and intentions that are subject to
significant risks and uncertainties, and are subject to change
based on various factors, some of which are beyond the Company's
control. The Company does not undertake to update any
forward-looking statement, whether written or oral, that may be
made from time to time by or on behalf of the Company.
SOURCE VIST Financial Corp.