Small California bank lands investment from local farm giant

Core Insights - Pacific Valley Bank in Salinas, California, has received a significant investment from Taylor Fresh Foods, acquiring a 16.3% ownership stake in the bank [1][2] - The investment aims to support the bank's growth strategy, which focuses on organic growth rather than acquisitions [2][10] - Taylor Fresh Foods is motivated by the importance of having a locally owned bank that supports small and medium-sized businesses in the region [4][8] Company Overview - Pacific Valley Bank's assets have increased from approximately $200 million to $596.6 million over the past nine years, reflecting a strong growth trajectory [2] - The bank's net income for the first nine months of 2025 was reported at $3.3 million, a decrease from $3.8 million in the same period the previous year, attributed to growth investments [11] - The bank is well-capitalized and the new investment will enhance its balance sheet flexibility and increase lending limits [12] Investment Details - 90% of Taylor Fresh Foods' investment was made through the issuance of new shares, with the remainder purchased on the open market [5][6] - Taylor Fresh Foods now owns 9.9% of Pacific Valley's common shares, with the rest being preferred, non-voting shares [6] - Jeff Cook, CFO of Taylor Farms, will join the board of directors of Pacific Valley Bank as part of the investment agreement [6] Strategic Focus - The bank's long-term strategy includes expanding into adjacent California counties while maintaining a focus on local agricultural and commercial businesses [9][10] - The relationship between local bankers and farmers is emphasized as crucial for the success of community banks in rural areas [8][7]