Heritage Oaks Bancorp in Paso Robles, Calif., has purchased of $3 million worth of its trust-preferred securities.

The $1.8 billion-asset company acquired the Trups in a public auction; Heritage Oaks agreed to pay $2.55 million for the Trups, or 85% of par plus accrued and unpaid interest.

Heritage Oaks plans to use the proceeds to retire $3 million of floating-rate, junior subordinated debt due August 2037. The company will record a $450,000 pretax gain on the debt retirement. After the retirement, Heritage Oaks will have about $5.25 million of remaining junior subordinated debt.

The bank used internal resources to fund the purchase, according to a regulatory filing.

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