SOURCE: Sierra Vista Bank
FOLSOM, CA--(Marketwire - Dec 13, 2012) - Sierra Vista Bank (OTCQB: SVBA) today announced that it has entered into a Securities Purchase Agreement with Taylor International Fund, LTD to purchase approximately $1.7 million of the bank's common stock. The bank expects this transaction, which is subject to regulatory approvals and other customary closing conditions, to be completed by the second quarter 2013. This increase in capital is in addition to the recently completed public offering which resulted in raising more than $2.0 million. Executive management expects the additional capital to allow Sierra Vista Bank to expand its lending practices and to seek growth opportunity in the markets that it serves.
The Securities Purchase Agreement provides that Taylor International Fund, LTD and Stephen Taylor will purchase up to an aggregate of 848,726 shares of common stock including warrants to purchase an additional 212,182 shares of common stock at the price of $2.00 per share which is the same pricing and warrant coverage offered to investors in the bank's recently completed public offering. The bank has agreed to appoint a representative of the investors to its board of directors upon completion of the investment. The Bank utilized Caldwell Securities, Inc. as the placement agent in this transaction.
Taylor International Fund, LTD is an investment fund that has a wide range of holdings including California community banks. "We are looking forward to being supportive shareholders in the bank as it pursues new opportunities ahead," said Stephen Taylor, Chairman of Taylor Asset Management, Inc.
About Sierra Vista Bank
Sierra Vista Bank is locally owned community bank headquartered at 1710 Prairie City Road in Folsom, California since March 2007 and has a branch located in the Sam's Town Center in Cameron Park. The Bank prides itself on serving the financial needs of small businesses and professionals in Folsom and throughout the Highway 50 Corridor while remaining committed to community philanthropy. Additional information about Sierra Vista Bank can be found at www.sierravistabank.com or by calling (916) 850-1500.
In addition to historical information, this press release includes forward-looking statements, such as statements regarding the expected sale of the bank's securities, anticipated increases in capital and lending activities and anticipated growth, which reflect management's current expectations for the bank's future financial results and business prospects. Forward-looking statements are inherently subject to risks and uncertainties, and actual results could differ materially from those currently anticipated due to a number of factors, which include, but are not limited to: (a) changes in competitive pressures among depository and other financial institutions or in the bank's ability to compete effectively against larger financial institutions in its banking market; (b) the failure of the bank and the investors to receive all required regulatory approvals and other actions of government regulators or changes in laws, regulations or accounting standards, that adversely affect the bank's business; (c) changes in interest rates and/or inflation; (d) changes in general economic or business conditions and the real estate market in the bank's market; (e) the ability of the bank to satisfy the conditions to closing in the Securities Purchase Agreement and (f) other unexpected developments or changes in the bank's business or its customers' businesses. Such risks and uncertainties could cause results for subsequent interim periods or for the entire year to differ materially from those indicated. You should not place undue reliance on the forward-looking statements, which reflect management's view only as of the date hereof. The bank undertakes no obligation to publicly revise these forward-looking statements to reflect subsequent events or circumstances.