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Mission Community Bancorp and Santa Lucia Bank merger finalized

October 24, 2011

By KAREN VELIE

Mission Community Bancorp and Santa Lucia Bank completed a previously announced merger on Oct. 21 saving the troubled Atascadero based Santa Lucia Bank from further regulatory actions, according to the Bancorp.

In May, the California Department of Financial Institutions gave Santa Lucia bank 90 days to increase equity or find a strategic partner to correct its under-capitalization condition and address problems with lending, management, and operations.

In June, Mission Community Bancorp announced it planed to acquire Santa Lucia Bank, a deal to save the struggling bank from further regulatory action. But, before the transaction could go through, regulators required Mission to raise additional capital to buy back Troubled Asset Relief Program shares from the U.S. Treasury.

The deal was also subject to the approval of shareholders and state and federal regulators. Through the merger, Santa Lucia Bancorp investors received 35 cents per share compared to the more than $8 a share it was selling at just over a year ago.

Santa Lucia Bank, which operates four branches in San Luis Obispo and Santa Barbara counties, reported a 2010 net loss of $14.8 million. Through the acquisition, Mission is required to hold certain non-performing assets of Santa Lucia Bank.

The combined community bank will operate under the Mission Community Bank name, with a network of full-service branch offices in San Luis Obispo and Santa Barbara counties in the cities of Paso Robles, Atascadero, San Luis Obispo, Arroyo Grande and Santa Maria. The consolidated bank will have approximately $450 million in assets and $410 million in deposits at the transaction close.

“We welcome Santa Lucia Bank customers and staff to the Mission Community Bank family,” said James Lokey, CEO and chairman of Mission Community Bancorp.  “Our combined bank will continue to provide the highest level of personal service that our customers have come to expect from Santa Lucia Bank and Mission Community Bank.”

All four former Santa Lucia Bank branch offices will remain open.


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By the time it was officially declared a zombie bank in December of 2010 the stock price had tanked from the mid 20’s to around 10. Some of the posters here were still defending the bank / in denial even then. Why oh why anyone would have had financial exposure or business connections with this bank subsequent to 12/10 is beyond me, and the same can be said for three other local banks.


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They made some bad real estate loans. Part of the reason these went bad is because of the market tanking. The bank was run by decent people who do not reek of shady business. I have an account there and from day 1 I have had nothing but good experiences dealing with these people. It is important to defend and help recapitalize our local banks, unless you want to be left with BofA, Chase, et al.


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This might enlighten some. Within months after my father elvin meek oases away our stepmother with the assist of attorney Grigger jones was in the santa Lucia bank closing accounts that were part of my fathers trust Elizabeth and jones hadn’t filed or opened the probate until 10 months after dad died so they were not legally in a position to do anything and of course out family didn’t know about this until a year later. I spoke with a female at the bank who was more than willing to guide us with information as to the amount of money on the accounts and the name on the accounts. At the tome I was the trustee according to the 1996 trust and since we didn’t know about the 1st amendment with our fathers forged signature that attorney jones said was signed in his office 3 days after the supposed 1997 1st amendments was signed in hawaii and since Elizabeth our stepmother and jones would not return our phone calls we had no idea what was happening. The point is if someone at the santa Lucia bank allowed our stepmother through her attorney to remove money and dissolve accounts without an authorization from a judge and without a probate filing then that tells me something is rotten with that bank. Mr jones records reflect was paid over $20000 by our stepmother before they even began the probate process. That isn’t a legal retainer, that is a payoff


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I think it’s “planned” not planed.


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That scumbag miller from hurst used Santa Lucia bank, not sure it it is a crook too.


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First let me say that I put up money to help SLNB accumulate the capital in order to meet the requirements to open a new bank for business. And yes it is true that some of management and the Board of Directors are being awarded ‘golden parachute’ payments or other fees on the sale to Mission as per the ‘Terms of the Merger’. Since I have always felt it was wrong to reward those who had a hand in the failure of a business, I voted no on these payouts. However, since I am a small shareholder, I am sure that my vote did not prevail. I will get my 35 cents a share and chalk it up as a business decision that went wrong helped along when the economy collapsed and a management team that was not doing their job.


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Local GOB’s control the cash flow again–


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I’ve been asking this question to no avail, but if anyone can get answer to this, I should think it would be a shareholder of SLNB. Where does one get a list of initial investors who created the bank in the first place? Would their Board of Directors necessarily be comprised of the largest shareholders?


Any reporters out there willing to part with this information? Advice appreciated.


I was under the impression that SLNB was started in either Santa Barbara or San Luis Obispo, but I would like a definitive answer on this, as well. How to find out where the bank was first started, not where it is incorporated.


If you are a member of the finacial banking services industry, you should know the answers to these questions. Squeak up! We haven’t heard much from you, but we know you’re out there. Time to educate your public.


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oto

If you walk into the entry of the Atascadero branch you will see a bronzed plaque on the wall with the names of all of the people who started SLNB. They are mostly local business people.


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This is good for our community.


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Wow, what a shock. Friday it was SLNB and today it isn’t. I knew of a merger but somehow thought account holders would have a written announcement before this took place. I have all my business accounts and personal accounts with SLNB and only heard about this from the media. I am disappointed by this. So much for “highest level of personal service our customers have come to expect”…


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35 cents a share? I have heard that the higher ups are receiving very generous severance packages so that they will not suffer from the decrease in the value of their stock which would affect their retirement. I hope that this is not true since I have been a customer of SLNB for many many years and have always held their management staff in high regards. If these actions do take place and the average stock holder takes it in the shorts I will be very disappointed in the management team that I have worked with and known over the years.


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