YORBA LINDA — Directors of the Bank of Yorba Linda on Thursday approved the formation of a bank holding company, which is expected to give the small community bank more flexibility in raising funds and acquiring other banks.
A holding company would allow Bank of Yorba Linda to acquire another institution as a subsidiary, retaining its name and management, said Robert Ucciferri, the bank's president. Certain bank divisions also may become holding company subsidiaries, he said.
The board told shareholders at their annual meeting that it also approved a 4-for-3 stock split, which gives investors an extra share for every three shares they hold. In addition, the board approved a 5-cent cash dividend based on the number of shares outstanding after the split.
The Bank of Yorba Linda holds loans and other assets totaling $133.4 million and operates five branches in Orange County.