Heritage Oaks Bank repays TARP debts
Heritage Oaks Bank buys back stock issued to US Treasury in TARP plan
Heritage Oaks Bank announced it has repurchased all shares of the Series A Senior Preferred Stock issued to the U.S. Department of the Treasury as part of the Troubled Asset Relief Program at par, plus accrued dividends. Total proceeds of $21 million plus $181,000 of accrued dividends were paid through a one-time dividend from the bank to the banks holding company, Heritage Oaks Bancorp.
“We are pleased to announce the repurchase of preferred stock from the U.S. Department of the Treasury,” said Simone Lagomarsino, President and Chief Executive Officer of Heritage Oaks Bancorp. “Our ability to repurchase these shares with internal resources reflects our overall financial strength and marks another major milestone in our return to financial health. The repurchase of the preferred stock will eliminate the dilutive effect of preferred dividends to our common shareholders.”
Pro-forma regulatory capital ratios at June 30, 2013, after considering the repurchase of preferred stock are 10.6% and 14.6% for Tier 1 Leverage and Total Risk-Based Capital, respectively. Pro-forma regulatory capital ratios are significantly higher than the minimum ratios of 5.0% and 10.0% for Tier 1 Leverage and Total Risk-Based Capital, respectively, generally required to be classified as a well-capitalized institution for regulatory purposes.
About Heritage Oaks Bancorp
With $1.1 billion in assets, Heritage Oaks Bancorp is the holding company for Heritage Oaks Bank which operates as Heritage Oaks Bank and Business First, a division of Heritage Oaks Bank. Heritage Oaks Bank has its headquarters and two branch offices in Paso Robles, two branch offices in San Luis Obispo and Santa Maria, single branch offices in Cambria, Arroyo Grande, Atascadero, Templeton, and Morro Bay, as well as loan production offices in Goleta and Ventura/Oxnard. Heritage Oaks Bank conducts commercial banking business in the counties of San Luis Obispo, Santa Barbara, and Ventura. The Business First division has one branch office in Santa Barbara. Visit Heritage Oaks Bancorp on the Web at www.heritageoaksbancorp.com.