SJNB Financial Corp. in San Jose, Calif., said it is buying Saratoga (Calif.) Bancorp and its Saratoga National Bank subsidiary for $37 million in stock.

SJNB, the parent of San Jose National Bank, would exchange seven-tenths of a share for each Saratoga share.

On the basis of SJNB's current stock price, the deal is valued at $23.38 per share, or 2.49 times Saratoga's book value.

San Jose National Bank and Saratoga National Bank were each founded in 1982. San Jose is primarily a business bank; Saratoga, with $149 million of assets, serves businesses and individuals.

Saratoga is expected to be merged into San Jose. The deal would boost SJNB's assets to $552 million and expand its branch network into Los Gatos and Saratoga, where many of its customers live or work, said James R. Kenny, SJNB's president and chief executive officer.

The deal, announced over the weekend, is expected to close late in the fourth quarter.

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