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SCB Announces Capital Raise; Addition to Executive Team

NEWS RELEASE
FOR IMMEDIATE RELEASE
Contact(s):

John M. Presley                                                                                    
Executive Chairman and Director                                                      
Sevier County Bank                                                                              
Sevier County Bancshares, Inc. (pending approval)                         
865.453.6101

or

Bobby R. Stoffle
President and Chief Executive Officer
Sevier County Bank
Sevier County Bancshares, Inc.
865.453.6101
 

Sevier County Bancshares, Inc. and Sevier County Bank Announce $13,000,000 Rights Offering and Capital Raise with Kenneth R. Lehman as Lead Investor; John Presley joining Boards of Directors and Executive Team

Sevierville TN - Sevier County Bancshares, Inc. (the Company) has entered into a securities purchase agreement (the agreement) with Kenneth R. Lehman, a private investor.

Mr. Lehman has agreed to purchase from the Company 40% of the total fully diluted pro forma shares of Common Stock outstanding at the completion of the transactions contemplated by the agreement, subject to regulatory approval.

As part of the agreement the Company intends to issue 2,600,000 shares at a price of $5.00 per share for a total Capital Raise of $13,000,000, inclusive of the shares to be issued to Mr. Lehman. The remaining shares will be offered for sale in a Rights Offering limited to current shareholders who qualify as "accredited investors" under federal securities law and certain other designated accredited investors.

At March 31, 2019, The Company had 1,468,334 shares outstanding. After the issuance of the shares in the Capital Raise the Company will have approximately 4,068,334 shares outstanding.

The Sevier County Bank (SCB) Board of Directors has also appointed John M. Presley as SCB Executive Chairman. Pending regulatory approval the Company intends to appoint Mr. Presley to the same position.

Mr. Presley has a long history in the Banking Industry, including 20 plus years with Memphis, Tennessee-based National Commerce Financial where he held several positions, including Chief Financial Officer. He began his career with Ernst & Young (Memphis) and has also served in executive and board positions with community banks in Virginia, Wisconsin and Georgia. Most recently, Mr. Presley has worked closely with Mr. Lehman in other successful bank recapitalizations.

"Our SCB team has worked diligently over the past 10 years, overcoming the effects of the largest economic downturn to hit our economy since the Great Depression. It is only through the collective efforts of many that we are still serving the banking needs of our community today. The Board of Directors and I are humbly grateful to attract an investor of Ken’s background and reputation for this final step to recovery and it is a testament to the loyalty and commitment of our SCB employees and customers for us to reach this milestone. We are also thrilled that John Presley is joining our board and executive team as Executive Chairman. John’s wealth of experience and guidance is key to quickly and successfully deploying our capital," said President and CEO Bobby R. Stoffle.

John Presley, Executive Chairman, said, "We want to thank our advisors at Banks Street Partners, Luse Gorman and Butler Snow for their collective guidance throughout this process. I am excited to join such a committed Board and management team."

"Our Board of Directors has worked diligently with our management team to ensure Sevier County Bank survived the economic crisis. It is with great pride we welcome the investment from Mr. Lehman and others to continue our mission of serving the citizens of Sevier County," said James Temple, Jr., Sevier County Bancshares Chairman. Mr. Temple will continue to serve on the SCB Board of Directors and key bank committees.

About Sevier County Bancshares and Sevier County Bank:

Sevier County Bank, the oldest business in Sevier County, is a locally run full-service community bank serving Sevier County and the surrounding area since 1909. With six branch locations, SCB offers a full line of banking products and services geared towards the needs of the citizens in its markets. Personalized service, commitment to the community, and sound management are the cornerstones of SCB. SCB offers competitive rates, innovative banking services and products with excellent client service for existing and new customers.

This press release is not an offer to sell or a solicitation of an offer to buy any securities. The shares of common stock of the Company are not a savings or deposit account and are not insured by the Federal Deposit Insurance Corporation or any other government agency.