UnionBanCal to Buy Valencia Bank & Trust

UnionBanCal Corp., California's second-largest bank, said it would buy Valencia Bank & Trust for $62 million in cash and stock to add branches in Los Angeles County.

UnionBanCal, parent of Union Bank of California, said it would pay $31 million in cash and $31 million in stock for Santa Clarita-based Valencia, which has 92 employees and five branches.

UnionBanCal valued the transaction at $34.13 a share, an 11% premium to Valencia's Monday closing price. Shares of Valencia jumped $2.30 to $33.10 on Nasdaq. Shares of San Francisco-based UnionBanCal rose $1.11 to $42.20 on the New York Stock Exchange.