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Pacific Valley Bank: Pacific Valley Bank Announces $2.0 Million Private Placement Offering of Common Stock

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^{Published in Business and Finance on Friday, August 21st 2009 at 15:41 GMT by Market Wire}  

SALINAS, CA--(Marketwire - August 21, 2009) - Pacific Valley Bank (OTCBB: [ PVBK ]) announces that its Board of Directors today authorized a private placement offering ("Offering") for up to $2.0 million, with an over subscription option equal to 20% over the offering maximum, of the Bank's shares of common stock (the "Common Stock") to accredited investors, in order to increase the Bank's capital which will (i) allow for growth, (ii) enhance the Bank's capital position, (iii) increase the Bank's lending limits, and (iv) may be used for other general corporate purposes. The Offering is subject to receipt of all necessary regulatory approvals, including the issuance of a stock permit from the California Department of Financial Institutions. Pacific Valley Bank expects to commence the Offering before the end of the third quarter 2009.

An offering price of $7.00 per share has been independently established by the Board of Directors, who took into consideration several factors, including the book value of the Bank's Common Stock, the Bank's results of operations, analysis of historical growth and growth potential of the Bank in the Bank's market area, assessment of the Bank's management, information received from consultants to the Bank, its financial condition and stock prices of peer banks.

The Offering is for a maximum of up to 285,715 shares, with an over subscription option equal to 20% over the maximum number of shares (the "Shares") of the Common Stock, no par value.

About Pacific Valley Bank

Pacific Valley Bank is a California banking corporation that commenced operations on September 14, 2004. We offer our services from three locations; our headquarters and Main Street office in Salinas, California, our office located in King City and our office located in Monterey. We provide a broad range of banking products and services, including credit and deposit services to our targeted client base of small and medium sized businesses, agriculture related businesses, non-profit organizations, professionals and individuals primarily in Monterey County. For more information, visit [ www.pacificvalleybank.com ].

Forward-Looking Statements

Statements concerning future performance, developments or events, expectations for growth and income forecasts, and any other guidance on future periods, constitute forward-looking statements that are subject to a number of risks and uncertainties. Actual results may differ materially from stated expectations. Specific factors include, but are not limited to, loan production, competitive pressure in the banking industry, balance sheet management, net interest margin variations, the ability to control costs and expenses, changes in the interest rate environment and financial policies of the United States government and general economic conditions. The Bank disclaims any obligation to update any such factors.