<PAGE>
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K/A
CURRENT REPORT
Pursuant to Section 13 or 15(d) of The Securities Exchange Act of 1934
Date of report (Date of earliest event reported) -- MAY 29, 1998
-----------------
BYL BANCORP
-----------
(Exact name of registrant as specified in it charter)
CALIFORNIA 000-23257 33-0755794
---------- -------- -----------
(Name or other jurisdiction (Commission (IRS Employer
of incorporation) File Number) Identification No.)
18206 IMPERIAL HIGHWAY, YORBA LINDA, CA 92886
- --------------------------------------- -----
(Address of principal executive officer) (Zip Code)
(Registrants' telephone number, including area code) -- (714) 996-1800
--------------
NA
--
(Former name or former address, if changed since last report.)
<PAGE>
ITEM 2 ACQUISITION OR DISPOSITION OF ASSETS
On May 29, 1998, BYL Bancorp ("BYL") completed the acquisition of DNB
Financial ("DNBF"), Riverside, California in which DNBF was merged with and into
the BYL. In addition, also on May 29, 1998, Bank of Yorba Linda ("BOYL"), the
BYL's wholly-owned subsidiary, completed the acquisition of De Anza National
Bank ("DANB"), Riverside, California, in which DANB was merged with and into
BOYL. Attached as an exhibit to this report is a copy of the press release that
was issued by BYL on May 29, 1998 generally describing the transaction.
The mergers as described above were effected pursuant to an Agreement and
Plan of Reorganization, dated as of January 29, 1998 (as the same may be
amended, the "Agreement"), by and between BYL, DNBF, BOYL and DANB. The
Agreement provides, among other things, that each issued and outstanding share
of common stock, no par value, of DNBF ("DNBF Common Stock") (other than shares
which have not been voted in favor of the approval of the principal terms of the
Merger and with respect to which dissenters' rights have been perfected in
accordance with the California General Corporation Law) will be converted into
the right to receive shares of common stock, no par value, of BYL ("BYL Common
Stock") on, and subject to, the terms and conditions contained in the Agreement.
A copy of the Agreement is included in the Joint Proxy Statement/Prospectus as
Appendix C. The Joint Proxy Statement/Prospectus is included as part of the
Registration Statement on Form S-4 that was declared effective by the Securities
and Exchange Commission on April 16, 1998.
As part of the transaction, Messrs. Henry Cox, Eddie Fischer and Neil
Hatcher were appointed to the Board of Directors of BYL and BOYL effective May
29, 1998
BYL and DNBF have received all necessary regulatory and shareholder
approvals in order to consummate the transaction. As a result of the
calculations required by the Agreement, each share of DNBF common stock will be
converted into the right to receive 4.1162 shares of BYL Common Stock, resulting
in the issuance of approximately 956,699 shares of BYL Common Stock to the
shareholders of DNBF.
The acquisition of DNBF by BYL increased the total assets of BYL and its
subsidiaries to approximately $270 million and total shareholders' equity to
approximately $23 million as of the consummation of the mergers.
ITEM 5. OTHER EVENTS.
BOYL is in the process of changing its name to BYL Bank Group, which is
expected to be effective on June 3, 1998. In addition, BOYL will continue to
use "Bank of Yorba Linda, a division of BYL Bank Group" for certain purposes,
such as for the SBA and mortgage loan divisions.
ITEM 7. FINANCIAL STATEMENTS AND EXHIBITS
<TABLE>
<CAPTION>
(a) FINANCIAL STATEMENTS OF DNBF Page
----
<S> <C>
Report of Independent Accountants *
Consolidated Balance Sheets at December 31, 1997 and 1996 *
Consolidated Statements of Income for the years ended
December 31, 1997 and 1996 *
Consolidated Statements of Changes in Shareholders Equity
for the years ended December 31, 1997 and 1996 *
Consolidated Statements of Cash Flows
for the years ended December 31, 1997 and 1996 *
Notes to Consolidated Financial Statements *
</TABLE>
* The Registrant hereby incorporates by reference herein the audited
financial statements of DNBF as set forth in Appendix B included in the
Registrant's Form S-4 Registration Statement, File No. 333-47013.
<PAGE>
(b) PRO FORMA FINANCIAL INFORMATION:
<TABLE>
<CAPTION>
<S> <C>
Introduction 3
Condensed Consolidated Balance Sheet at December 31, 1997 4
Condensed Consolidated Income Statements for the years
Ended December 31, 1997, 1996, and 1995 5-7
</TABLE>
(c) EXHIBITS.
(1) Agreement and Plan of Reorganization (previously filed as Appendix C to
the Registration Statement on Form S-4, file number 333-47013
UNAUDITED PRO FORMA CONDENSED CONSOLIDATED FINANCIAL DATA
The following unaudited pro forma condensed consolidated data combines the
historical consolidated condensed financial statements of BYL, and the
historical consolidated condensed financial statements of DNBF, giving effect
to the Merger as if it had been effective on December 31, 1997, with respect
to the Pro Forma Condensed Consolidated Balance Sheets, and as of the
beginning of the periods indicated with respect to the Pro Forma Condensed
Consolidated Statements of Income. This information is presented under
pooling-of-interests accounting.
The unaudited pro forma condensed consolidated balance sheets are not
necessarily indicative of the actual financial position that would have
existed had the Merger been consummated on December 31, 1997, or that may
exist in the future. The unaudited pro forma statements of income are not
necessarily indicative of the results that would have occurred had the Merger
been consummated on the dated indicated or that may be achieved in the future.
<PAGE>
UNAUDITED PRO FORMA CONDENSED CONSOLIDATED BALANCE SHEETS
AS OF DECEMBER 31, 1997
(DOLLAR AMOUNTS IN THOUSANDS, EXCEPT FOR PER SHARE DATA)
<TABLE>
<CAPTION>
BYL DNBF PRO FORMA BYL
HISTORICAL HISTORICAL ADJUSTMENTS PRO FORMA
------------ ------------ --------------- ------------
<S> <C> <C> <C> <C>
ASSETS
Cash and Due From Banks................................ $ 7,188 $ 4,706 $ -- $ 11,894
Interest-Bearing Deposits.............................. -- 3,419 -- 3,419
Investment Securities:
Available for Sale................................... 463 9,952 -- 10,415
Held to Maturity..................................... 5,007 7,943 -- 12,950
------------ ------------ ----- ------------
TOTAL INVESTMENT SECURITIES...................... 5,470 17,895 -- 23,365
Loans Held for Sale.................................... 47,150 -- -- 47,150
Net Loans Held for Investment.......................... 91,995 45,555 -- 137,550
Premises and Equipment--Note D......................... 4,402 803 -- 5,205
Other Real Estate Owned................................ 646 278 -- 924
Accrued Interest and Other Assets...................... 7,816 763 -- 8,579
------------ ------------ ----- ------------
$ 164,667 $ 73,419 $ -- $ 238,086
------------ ------------ ----- ------------
------------ ------------ ----- ------------
LIABILITIES AND SHAREHOLDERS' EQUITY
Deposits
Noninterest-Bearing.................................. $ 40,537 $ 15,606 $ -- $ 56,143
Interest-Bearing..................................... 102,299 49,493 -- 151,792
------------ ------------ ----- ------------
TOTAL DEPOSITS................................... 142,836 65,099 -- 207,935
Borrowed Funds......................................... 4,000 465 -- 4,465
Accrued Interest and Other Liabilities................. 3,001 135 -- 3,136
------------ ------------ ----- ------------
TOTAL LIABILITIES................................ 149,837 65,699 -- 215,536
Shareholders' Equity
Common Shares........................................ 10,372 2,251 -- 12,623
Undivided Profits.................................... 4,458 5,497 -- 9,955
Unrealized Gains on Investments Available for Sale... -- (28) -- (28)
------------ ------------ ----- ------------
TOTAL SHAREHOLDERS' EQUITY....................... 14,830 7,720 -- 22,550
------------ ------------ ----- ------------
$ 164,667 $ 73,419 $ -- $ 238,086
------------ ------------ ----- ------------
------------ ------------ ----- ------------
Number of Shares Outstanding........................... 1,546,530 232,423 2,503,171
Book Value Per Share................................... $9.59 $33.22 $9.01
</TABLE>
4
<PAGE>
UNAUDITED PRO FORMA CONDENSED CONSOLIDATED INCOME STATEMENT
FOR YEAR ENDED DECEMBER 31, 1997
(DOLLAR AMOUNTS IN THOUSANDS, EXCEPT FOR PER SHARE DATA)
<TABLE>
<CAPTION>
BYL DNBF PRO FORMA BYL
HISTORICAL HISTORICAL ADJUSTMENTS PRO FORMA
----------- ------------ --------------- -----------
<S> <C> <C> <C> <C>
INTEREST INCOME
Interest and Fees on Loans................................ $ 12,227 $ 4,072 $ 16,299
Interest on Investment Securities......................... 395 1,140 1,535
Other Interest Income..................................... 394 227 621
--------- ---------- ------ ---------
TOTAL INTEREST INCOME................................... 13,016 5,439 -- 18,455
INTEREST EXPENSE
Interest on Money Market and NOW.......................... 728 593 1,321
Interest on Savings Deposits.............................. 814 106 920
Interest on Time Deposits................................. 2,604 1,137 3,741
Interest on Other Borrowings.............................. 14 61 75
--------- ---------- ------ ---------
TOTAL INTEREST EXPENSE.................................. 4,160 1,897 -- 6,057
--------- ---------- ------ ---------
NET INTEREST INCOME..................................... 8,856 3,542 -- 12,398
Provision for Credit Losses................................. 733 45 778
--------- ---------- ------ ---------
NET INTEREST INCOME AFTER PROVISION FOR CREDIT LOSSES... 8,123 3,497 -- 11,620
NONINTEREST INCOME
Gains, Fees, and Servicing Income on Loans Sold........... 13,839 -- 13,839
Service Charges, Fees, and Other Income................... 962 1,118 2,080
--------- ---------- ------ ---------
14,801 1,118 -- 15,919
NONINTEREST EXPENSE
Salaries and Employee Benefits............................ 12,415 1,658 14,073
Occupancy Expenses........................................ 913 429 1,342
Furniture and Equipment................................... 1,230 158 1,388
Other Expenses............................................ 4,648 1,265 5,913
--------- ---------- ------ ---------
19,206 3,510 -- 22,716
--------- ---------- ------ ---------
INCOME BEFORE INCOME TAXES.............................. 3,718 1,105 -- 4,823
Income Taxes................................................ 1,609 360 1,969
--------- ---------- ------ ---------
NET INCOME.............................................. $ 2,109 $ 745 $ -- $ 2,854
--------- ---------- ------ ---------
--------- ---------- ------ ---------
Per Share Data
Net Income--Basic......................................... $ 1.37 $ 3.55 $ 1.19
Net Income--Diluted....................................... $ 1.28 $ 3.44 $ 1.12
</TABLE>
5
<PAGE>
UNAUDITED PRO FORMA CONDENSED CONSOLIDATED INCOME STATEMENT
FOR YEAR ENDED DECEMBER 31, 1996
(DOLLAR AMOUNTS IN THOUSANDS, EXCEPT FOR PER SHARE DATA)
<TABLE>
<CAPTION>
BYL DNBF PRO FORMA BYL
HISTORICAL HISTORICAL ADJUSTMENTS PRO FORMA
---------- ------------ ------------- -----------
<S> <C> <C> <C> <C>
INTEREST INCOME
Interest and Fees on Loans................................ $ 6,920 $ 3,743 $ 10,663
Interest on Investment Securities......................... 356 1,093 1,449
Other Interest Income..................................... 222 308 530
--------- --------- ------ ---------
TOTAL INTEREST INCOME................................... 7,498 5,144 -- 12,642
INTEREST EXPENSE
Interest on Money Market and NOW.......................... 576 640 1,216
Interest on Savings Deposits.............................. 512 136 648
Interest on Time Deposits................................. 972 893 1,865
Interest on Other Borrowings.............................. -- 112 112
--------- --------- ------ ---------
TOTAL INTEREST EXPENSE.................................. 2,060 1,781 -- 3,841
--------- --------- ------ ---------
NET INTEREST INCOME..................................... 3,438 3,363 -- 8,801
Provision for Credit Losses................................. 344 20 364
--------- --------- ------ ---------
NET INTEREST INCOME AFTER PROVISION FOR CREDIT LOSSES... 5,094 3,343 -- 8,437
NONINTEREST INCOME
Gains, Fees, and Servicing Income on Loans Sold........... 6,860 -- 6,860
Service Charges, Fees, and Other Income................... 793 1,099 1,892
--------- --------- ------ ---------
7,653 1,099 -- 8,752
NONINTEREST EXPENSE
Salaries and Employee Benefits............................ 6,158 1,523 7,681
Occupancy Expenses........................................ 717 435 1,152
Furniture and Equipment................................... 667 159 826
Other Expenses............................................ 3,119 1,266 4,385
--------- --------- ------ ---------
10,661 3,383 -- 14,044
--------- --------- ------ ---------
INCOME BEFORE INCOME TAXES.............................. 2,086 1,059 -- 3,145
Income Taxes................................................ 884 345 1,229
--------- --------- ------ ---------
NET INCOME.............................................. $ 1,202 $ 714 $ -- $ 1,916
--------- --------- ------ ---------
--------- --------- ------ ---------
Per Share Data--Maximum Exchange Ratio
Net Income--Basic......................................... $ 1.12 $ 3.38 $ 0.98
Net Income--Diluted....................................... $ 1.04 $ 3.37 $ 0.95
</TABLE>
6
<PAGE>
UNAUDITED PRO FORMA CONDENSED CONSOLIDATED INCOME STATEMENT
FOR YEAR ENDED DECEMBER 31, 1995
(DOLLAR AMOUNTS IN THOUSANDS, EXCEPT FOR PER SHARE DATA)
<TABLE>
<CAPTION>
BYL DNBF PRO FORMA BYL
HISTORICAL HISTORICAL ADJUSTMENTS PRO FORMA
---------- ------------ ------------- -----------
<S> <C> <C> <C> <C>
INTEREST INCOME
Interest and Fees on Loans................................ $ 4,120 $ 3,747 $ 7,867
Interest on Investment Securities......................... 219 1,233 1,452
Other Interest Income..................................... 140 287 427
--------- --------- ------ ---------
TOTAL INTEREST INCOME................................... 4,479 5,267 -- 9,746
INTEREST EXPENSE
Interest on Money Market and NOW.......................... 453 802 1,255
Interest on Savings Deposits.............................. 278 155 433
Interest on Time Deposits................................. 314 687 1,001
Interest on Other Borrowings.............................. -- 68 68
--------- --------- ------ ---------
TOTAL INTEREST EXPENSE.................................. 1,045 1,712 -- 2,757
--------- --------- ------ ---------
NET INTEREST INCOME..................................... 3,434 3,555 -- 6,989
Provision for Credit Losses................................. 262 -- 262
--------- --------- ------ ---------
NET INTEREST INCOME AFTER PROVISION FOR CREDIT LOSSES... 3,172 3,555 -- 6,727
NONINTEREST INCOME
Gains, Fees, and Servicing Income on Loans Sold........... 5,157 -- 5,157
Service Charges, Fees, and Other Income................... 505 1,064 1,569
--------- --------- ------ ---------
5,662 1,064 -- 6,726
NONINTEREST EXPENSE
Salaries and Employee Benefits............................ 4,399 1,566 5,965
Occupancy Expenses........................................ 538 461 999
Furniture and Equipment................................... 434 162 596
Other Expenses............................................ 1,724 1,927 3,651
--------- --------- ------ ---------
7,095 4,116 -- 11,211
--------- --------- ------ ---------
INCOME BEFORE INCOME TAXES.............................. 1,739 503 -- 2,242
Income Taxes................................................ 717 155 872
--------- --------- ------ ---------
NET INCOME.............................................. $ 1,022 $ 348 $ -- $ 1,370
--------- --------- ------ ---------
--------- --------- ------ ---------
Net Income--Basic......................................... $ 1.98 $ 1.57 $ 0.92
Net Income--Diluted....................................... $ 1.39 $ 1.57 $ 0.83
</TABLE>
7
<PAGE>
SIGNATURES
In accordance with Section 13 or 15(d) of the Securities Exchange Act of
1934, the registrant has duly caused this report to be signed on its behalf
by the undersigned, thereunto duly authorized.
BYL BANCORP
Dated: July 16, 1998 By: /s/ Robert Ucciferri
-------------------------------------
Robert Ucciferri
President and Chief Executive Officer