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.) 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 (a) FINANCIAL STATEMENTS OF DNBF Page ---- 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 * * 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. (b) PRO FORMA FINANCIAL INFORMATION: 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 (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. UNAUDITED PRO FORMA CONDENSED CONSOLIDATED BALANCE SHEETS AS OF DECEMBER 31, 1997 (DOLLAR AMOUNTS IN THOUSANDS, EXCEPT FOR PER SHARE DATA) BYL DNBF PRO FORMA BYL HISTORICAL HISTORICAL ADJUSTMENTS PRO FORMA ------------ ------------ --------------- ------------ 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 4 UNAUDITED PRO FORMA CONDENSED CONSOLIDATED INCOME STATEMENT FOR YEAR ENDED DECEMBER 31, 1997 (DOLLAR AMOUNTS IN THOUSANDS, EXCEPT FOR PER SHARE DATA) BYL DNBF PRO FORMA BYL HISTORICAL HISTORICAL ADJUSTMENTS PRO FORMA ----------- ------------ --------------- ----------- 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 5 UNAUDITED PRO FORMA CONDENSED CONSOLIDATED INCOME STATEMENT FOR YEAR ENDED DECEMBER 31, 1996 (DOLLAR AMOUNTS IN THOUSANDS, EXCEPT FOR PER SHARE DATA) BYL DNBF PRO FORMA BYL HISTORICAL HISTORICAL ADJUSTMENTS PRO FORMA ---------- ------------ ------------- ----------- 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 6 UNAUDITED PRO FORMA CONDENSED CONSOLIDATED INCOME STATEMENT FOR YEAR ENDED DECEMBER 31, 1995 (DOLLAR AMOUNTS IN THOUSANDS, EXCEPT FOR PER SHARE DATA) BYL DNBF PRO FORMA BYL HISTORICAL HISTORICAL ADJUSTMENTS PRO FORMA ---------- ------------ ------------- ----------- 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 7 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