Heritage Oaks Bancorp Redeems TARP

Heritage Oaks Bancorp Redeems TARP

  • Posted: 07/17/2013
  • Castle Creek

PASO ROBLES, Calif.–(GLOBE NEWSWIRE)–Heritage Oaks Bancorp (“Heritage Oaks” or the “Company”) (Nasdaq:HEOP), a bank holding company and parent of Heritage Oaks Bank (the “Bank”), announced that it has repurchased all shares of the Series A Senior Preferred Stock issued to the U.S. Department of the Treasury (“UST”) as part of the Troubled Asset Relief Program—Capital Purchase Program (“TARP CPP”) at par, plus accrued dividends. Total proceeds of $21.0 million plus $181 thousand of accrued dividends were paid through a one-time dividend from the Bank to the Company.

“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.

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