BYL Bancorp, the parent of Bank of Yorba Linda (Calif.), has announced it will buy DNB Financial Corp., Riverside, Calif., for about $20 million in stock-or 2.5 times DNB's book value.
DNB is the parent company of De Anza National Bank, a $73.4 million- asset institution with three branches in Riverside County. Under terms of the deal, BYL would exchange 4.59 shares of its common stock for each share of DNB stock.
"BYL brings to our service area a unique expertise in Small Business Administration lending and mortgage loans which ... will give the business customers a vast array of new services from which to choose," said Neil Hatcher, DNB's president and chief executive officer.
The acquisition, expected to close May 31, would boost Orange County- based BYL's assets by 45%, to about $240 million.