Sevierville TN - Sevier County Bancshares, Inc. (the "Company"), the holding company for Sevier County Bank ("SCB"), is pleased to announce the completion of its issuance of $13 million in new common stock to certain existing and new shareholders, effective August 1. The equity raise included shares issued via a securities purchase agreement (the "Agreement") with Kenneth R. Lehman, a private investor, as well as a Rights Offering to existing accredited shareholders of the Company and certain other designated accredited investors.
Pursuant to the Agreement and final terms of the offering, Mr. Lehman purchased from the Company 1,663,598 shares of common stock at a price of $5.00 per share, for an aggregate purchase price of approximately $8.3 million. Other investors purchased from the Company an additional 936,402 shares for the same per-share price, for an aggregate purchase price of approximately $4.7 million. Following the completion of the Offering, the Company has 4,068,334 shares of common stock outstanding.
Lead Director Gary R. Wade said, "I congratulate and credit Bobby Stoffle, his able staff and the Board for steering Sevier County’s oldest bank into good standing. SCB survived the Great Depression and, thanks to committed management and directors, has now survived the Great Recession. I tip my hat to the shareholders and customers who have remained loyal throughout the difficult financial times of the last decade. The future is bright!"
Additionally, all necessary regulatory approvals have now been received and John M. Presley has been formally appointed Executive Chairman of both the Company and SCB.
"This transaction represents a turning point in the history of the Company and SCB. We are proud to have assembled a first-class team and positioned the Company and SCB well for future prosperity. I thank the Board of Directors, SCB employees and our customers for their commitment and leadership in reaching this milestone. We look forward to the coming chapter and serving each of our constituents even more profoundly than we have in the past," said President and CEO Bobby R. Stoffle.
"I’m proud to be a part of this Company and Board of Directors. I look forward to what we will accomplish together moving forward," added John Presley, Executive Chairman.
Performance Trust Capital Partners, LLC, through its subsidiary BSP Securities, LLC, served as sole placement agent for the Offering. Luse Gorman, PC and Butler Snow, LLP acted as the Company’s legal counsel. Crowe LLP served as the Company’s tax advisor.
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.
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.