Sierra Bancorp in Porterville, Calif., has agreed to buy Coast Bancorp in San Luis Obispo, Calif.

The $1.7 billion-asset Sierra said in a press release late Monday that it will pay $13.8 million, or $2.37 a share, in cash and stock for the $146.4 million-asset Coast.

Sierra said it expects the acquisition to be immediately accretive to its earnings per share. It should take less than four years to earn back any dilution to Sierra's tangible book value.

"Expansion to California's central coast presents an exciting growth opportunity," Kevin McPhail, Sierra's president and chief executive, said in the release. "The cash consideration allows us to leverage our existing capital, and we believe this opportunity will enable us to further deploy capital via lending opportunities in San Luis Obispo and the surrounding communities."

Sierra was advised by Keefe, Bruyette & Woods and King, Holmes, Paterno & Soriano. Coast was advised by FIG Partners and Stuart & Moore. Coast also received a fairness opinion from Vining Sparks Community Bank Advisory Group.

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