Eldorado Bancshares Will Buy Antelope Valley Bank

Eldorado Bancshares Inc., the Laguna Hills holding company for Eldorado Bank, said Wednesday it has signed an agreement to acquire Antelope Valley Bank of Lancaster. The two banks valued the all-stock deal at $44 million.

Antelope Valley shareholders will end up with a 23% stake in Eldorado Bancshares if the sale is completed, as expected, early next year. Both companies are public, although neither stock is actively traded. Eldorado shares are valued at $16 while Antelope Valley was valued at $58 a share for purposes of the sale.

Eldorado President Robert P. Keller said the holding company expects to issue new stock in the fourth quarter for public trading on the Nasdaq market. Combined, the two banks will give the holding company total assets of $1.2 billion--most of that from Tustin-based Eldorado Bank, which has 17 branch offices in Southern California and the Sacramento area. Eldorado also operates nine mortgage lending offices.

Antelope Valley Bank, with $200 million in assets, has eight branch offices. It will continue operating after the sale under its own name and with its present management and staff, Keller said.