Heritage Oaks Bancorp (HEOP) in Paso Robles, Calif., plans to cut about 18% of its workforce and close five branches after it buys Mission Community Bancorp (MISN) in San Luis Obispo, Calif.
The $1.1 billion-asset Heritage Oaks will likely cut 65 jobs once it acquires the $445 million-asset Mission, the San Luis Obispo County Tribune reported last week. The companies currently have a combined 11 branches and 353 workers, consisting of 240 at Heritage Oaks and 113 at Mission, the report said.
Heritage Oaks plans to lay off workers from both institutions, targeting overlapping duties, and close branches within 1.5 miles from one another. The closures will begin in the summer, and layoffs will take place over a 10-month period. Laid off workers will be given severance, the report said.
Among the current Mission employees planning to leave are Chief Executive Tom Dobyns, Chief Financial Officer Thomas Tolda and Chairman James Lokey, the Tribune reported.
Heritage Oaks agreed in October to pay about $56.4 million for Mission. It expects the deal to close in the first quarter.
Heritage Oaks has freed itself from several regulatory orders in the past year. The Federal Reserve Board lifted a memorandum of understanding with the company in September.
Last month, American Banker named Heritage Oaks CEO Simone Lagomarsino a 2013 community banker of the year.