Heritage Oaks Bancorp in Paso Robles, Calif., has revamped its audit committee after discovering it broke Nasdaq rules.

The $1.7 billion-asset bank paid an "immaterial amount of legal fees" to the law firms of two audit committee members, which is a violation of Nasdaq rules, it said in a regulatory filing Wednesday.

Heritage has taken steps to address the problem, it said in the filing. It has stopped sending legal work to one of the firms. Additionally, the bank has accepted the resignation of the audit committee member from the other firm, which continues to provide legal services for the bank.

As a result, Heritage Oaks has reduced the size of its audit committee to five members from six.

Heritage Oaks operates 17 locations in Southern California, according to the Federal Deposit Insurance Corp.'s website.

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