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PASO ROBLES and SAN LUIS OBISPO, Calif., Oct. 21, 2013 (GLOBE NEWSWIRE) -- Mission Community Bank and Heritage Oaks Bank have announced plans to merge their two operations, creating the largest community bank headquartered on the Central Coast.
Heritage Oaks Bancorp, holding company for Heritage Oaks Bank, will acquire Mission Community Bancorp in a transaction that includes $8.0 million in cash and 7,541,353 shares of Heritage Oaks common stock, having an aggregate value of approximately $56.4 million (based on the closing price of Heritage Oaks common stock on October 18, 2013of $6.42 per share). The two banks will be merged and the new organization, Heritage Oaks Bank, will have approximately $1.5 billion in assets. The agreement requires shareholder and regulatory approvals, and the merger is anticipated to close in February 2014.
The boards of directors of Mission Community and Heritage Oaks approved the transaction, and all directors and senior executive officers of both organizations have signed voting agreements in support of the transaction.
Lagomarsino and Mission Community Bank CEO Tom Dobyns made the announcement jointly on Monday. "Simone and I both strongly believe in community banking," said Dobyns. "And with Internet banking and new competition redefining the market, we both know business as usual will no longer win the day. The reality is that we are stronger together than we are apart. This is simply the right thing for our shareholders, customers, and the community at large. It is the best option for retaining a strong locally managed community bank dedicated to serving the Central Coast," he said.