Heritage Oaks Bank, the wholly-owned bank subsidiary of Heritage Oaks Bancorp, announced that it has entered into a definitive agreement to acquire the Morro Bay branch office of Coast National Bank and related deposits maintained at the branch. The transaction will include the transfer to Heritage Oaks Bank of approximately $30M of deposit accounts as of June 30, the purchase of the branch office at 898 Morro Bay Boulevard and other miscellaneous physical assets related to the branch. Heritage Oaks Bank will pay market value for the building and the physical assets, and a blended deposit premium of 2.2% for the deposits which includes approximately 35.5% non-interest bearing demand deposits. No loans will be transferred. The transaction is expected to close before the end of 2012.
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