BYL Bancorp, an Orange-based bank holding company, indicated Friday that it has been in merger talks with the holding company for People's Bank of California.
BYL, holding company for the BYL Bank Group that primarily serves Orange and Riverside counties, acknowledged in a press release that it may be "sold, acquired or merged with PBOC Holdings Inc.," the People's Bank parent.
BYL also said that although it held merger talks with PBOC, there is no assurance of further discussions or an agreement.
The potential deal prompted BYL to amend an agreement under which it was to acquire 25% of a new unit, CNL Commercial Finance Inc., according to the release.
BYL Bancorp signed an agreement with CNL Commercial Funding LP in July to form CNL Commercial Finance LLC to acquire BYL Bank's small-business operations. Under the joint venture, CNL Commercial would own 75%.
BYL, which has about 350 employees, operates seven branches and two loan origination divisions. It also operates mortgage loan origination offices in eight states.
But the company has been restructuring, closing its automobile division and selling its Diamond Bar residential mortgage division.
The company reported a first quarter loss of $260,000 as a result of the restructuring and suspended quarterly dividends, effective Jan. 1. In the second quarter, BYL earned $427,000, or 17 cents a share, down 37.4% from $682,000, or 27 cents a share, a year ago. Assets June 30 totaled $322.3 million, down from $353.7 million Dec. 31.