Pacific Valley Bank Secures Major Investment from Local Agribusiness
In a testament to the enduring relationship between bankers and farmers in rural communities, Pacific Valley Bank, a community bank operating in California’s Central Coast, has secured a significant investment from local agricultural giant, Taylor Fresh Foods. The move underscores the pivotal role of local financial institutions in supporting the growth and resilience of rural economies.
Investment to Drive Bank’s Growth
Pacific Valley Bank, based in Salinas, California, recently announced that Taylor Fresh Foods, a leading manufacturer of pre-packaged salads, has acquired a 16.3% ownership stake in the bank. It is a significant endorsement for a small bank operating in a region often referred to as the “Salad Bowl of the World”.
The investment will be channeled towards supporting the bank’s growth strategy, according to Pacific Valley CEO Anker Fanoe. Over the past nine years, the bank’s assets have grown from approximately $200 million to $596.6 million, as of September 30, 2025, a growth achieved without acquisitions. “There are other markets that we have our eye on,” Fanoe said. “The long-term strategy is organic growth.”
An Investment Rooted in Local Connections
Taylor Fresh Foods, the family-owned company behind the Taylor Farms brand, has a long-standing relationship with Pacific Valley Bank. Taylor Farms CEO Bruce Taylor has not only been a customer of the bank but also referred business to it. After the sale of Salinas’ only other locally owned bank, 1st Capital Bancorp, to West Coast Community Bancorp in 2024, Taylor expressed an interest in investing in Pacific Valley.
Taylor’s investment is also grounded in his belief in the bank’s value and potential upside. According to Fanoe, “He’s a value guy … meaning he can buy in at a good price, and where he sees upside.” As part of the deal, 90% of Taylor Fresh Foods’ investment came through the issuance of new shares, with the rest acquired on the open market.
Regulatory Considerations and Board Inclusion
To avoid triggering additional reporting requirements, the investment was structured in a way that Taylor Fresh Foods does not have “control” of the bank from a regulatory perspective. The agricultural company now owns 9.9% of Pacific Valley’s common shares, with the rest involving the purchase of preferred, non-voting shares.
With this investment, Jeff Cook, the CFO at Taylor Farms, will join Pacific Valley’s board of directors. “The bank’s track record and strategic plans for measured expansion align well with Taylor Farms’ long-term investment strategies,” Cook said.
Expanding Footprint and Future Prospects
Pacific Valley Bank’s future plans entail expansion into other adjacent California counties. Locally founded by farmers and businesspeople in 2004, the bank currently serves a diversified economy, including commercial real estate, multifamily housing, and the hospitality sector, in addition to agricultural businesses.
Despite a slight dip in net income from $3.8 million to $3.3 million in the first nine months of 2025, attributed to investments in growth, the bank remains optimistic. “We budgeted for that, knowing that there was opportunity for us to expand our footprint,” Fanoe said. The investment from Taylor Fresh Foods enhances the bank’s lending capabilities and offers more flexibility. “It’s a real vote of confidence,” Fanoe added.
This investment highlights the importance of local banks in supporting the growth of small and medium-sized businesses in rural communities. As Lynn David, president of Community Bank Consulting Services, aptly put it, “Bankers kind of pick the cream of the crop, as far as the farmers.”
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