Aug 6 - Heritage Oaks Bancorp (Nasdaq: HEOP), a bank holding company and parent of Heritage Oaks Bank, has announced that the company reached agreement with the United States Department of Treasury regarding the company's repurchase of warrants, which provided the Treasury the opportunity to purchase 611,650 shares of the company's common stock at a price of $5.15 per share.
These warrants were issued to the Treasury as part of the Troubled Asset Relief Program Capital Purchase Program. The company will repurchase the warrants from the Treasury for $1.58 million, which is the price accepted by the Treasury on July 30, 2013. The repurchase of these warrants is expected to occur on Aug. 7, 2013.
The company has previously announced that it repurchased series A preferred stock issued to the Treasury as part of the TARP CPP on July 17, 2013, at par plus accrued dividends, the sum of which totaled $21.2 million. The purchase of both the series A preferred stock and related warrants were funded through a one-time dividend from the bank to the company. The company's pro-forma regulatory capital ratios at June 30, 2013, after considering the July 17, 2013, repurchase of series A preferred shares and the pending Aug. 7, 2013, repurchase of warrants from the Treasury are 10.5 percent and 14.4 percent for Tier 1 leverage capital ratio and total risk-based capital ratio, respectively.
In commenting on the repurchases, Simone Lagomarsino, president and CEO said, "We are pleased to have completed the repurchase of both the TARP preferred stock and warrants from the United States Department of the Treasury. Our ability to repay with internal resources and still maintain strong regulatory capital ratios reflects the financial strength of our organization and marks another major milestone in our return to financial health. The repurchase of the preferred stock and warrants eliminates the dilutive effect these instruments have on our common shareholders."
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, Calif., two branch offices in San Luis Obispo and Santa Maria, Calif., single branch offices in Cambria, Arroyo Grande, Atascadero, Templeton, and Morro Bay, as well as loan production offices in Goleta and Ventura/Oxnard, Calif. Heritage Oaks Bank conducts commercial banking business in the counties of San Luis Obispo, Santa Barbara and Ventura, Calif. The Business First division has one branch office in Santa Barbara. Visit Heritage Oaks Bancorp on the Web at www.heritageoaksbancorp.com.