Heritage Oaks Bank plans layoffs with Mission Community Bank merger
Paso Robles-based Heritage Oaks Bank plans to cut about 18% of its workforce and close five branches after it buys Mission Community Bancorp in San Luis Obispo, according to media reports.
The news comes after the banks announced a merger in October. Read more at: Two local community banks are merging
The $1.1 billion-asset Heritage Oaks is expected to cut 65 jobs once it acquires the $445 million-asset Mission, the San Luis Obispo Tribune and American Banker reported. The companies currently have a combined total of 11 branches and 353 workers. There are 240 at Heritage Oaks and 113 at Mission, the reports said.
“Heritage Oaks plans to lay off workers from both institutions, targeting overlapping duties, and close branches within 1.5 miles from one another,” American Banker reports. “The closures will begin in the summer, and layoffs will take place over a 10-month period. Laid off workers will be given severance.”
Among the current Mission employees planning to leave are Chief Executive Tom Dobyns, Chief Financial Officer Thomas Tolda and Chairman James Lokey, the Tribune reported.
Heritage Oaks agreed in October to pay about $56.4 million for Mission. It expects the deal to close in the first quarter.
Last month, American Banker named Heritage Oaks CEO Simone Lagomarsino a 2013 community banker of the year.
- Two local community banks are merging
- Heritage Oaks Bank repays TARP debts
- Heritage Oaks vice president resigns