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.