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Heritage Oaks Bank to lay off 65 people

December 7, 2013

heritageHeritage Oaks Bancorp is planning to lay off 65 employees as it consolidates 11 branches into five.

In October, Heritage Oaks announced it had agreed to pay $56.4 million to buy the $447 million-asset Mission Community Bancorp, making it the second-largest bank in the area with $1.5 billion in assets. The sale is expected to close on Feb. 28.

Bank officials notified employees last month of the impending layoffs which are slated to occur over 10 months starting when the sale closes. There are 240 people currently employed at Heritage Oaks and 133 employees at Mission Community.

Many of the 65 employees to be laid off from both institutions hold jobs that are duplicated.

Laid off employees will receive severance packages of at least one month’s pay.

 


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In my experience, and my mother’s before me, HOB employees (for the most part) have been awesome. This is why I retain my account though having moved hundreds of miles away.

Sincerely hope this is not a trend of the new structure.


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Well the employees may be fine but the bank in general has some major morality issues. Twice now they have been caught up in shaky practices. First in the mid to late eighties in the Block and Bower debacle in Paso and now with the Gearharts and others of the 2000’s.


Yep hell of a track record. I’m surprised anyone keeps more than a pass book account with this questionable bank.


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heritage oaks bought my bank, coast national, in los osos. i was totally satisfied with coast and wouldn’t have switched to heritage oaks. i’m sorry to hear that employees are being laid off. a month’s severance isn’t much, but they’ll be eligible for unemployment. that doesn’t help our economy, though. nor does it help the job market; it’s already very difficult to find a job where you earn enough to support yourself.


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Both of these banks received government bailout funds in 2009. $21million and $5.1million. They have both repaid the government “loans” (Heritage Oaks just this year). This isn’t helping the local employment picture, 65 jobs is a significant in our small area.


The good news is there will be only one bank to bailout the next time!


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quite the astute political observation. must make a note to add that to my sage journal.


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If they needed bailout funds it was evident that they were not as solvent as they should have been. Eliminating jobs will help that issue by the reduction in expenses.


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Sorry to hear about the emplyoees losing their jobs. However, Heritage Oaks Bancorp are a bunch of crooks. With their help, they enabled Karen Guth and Joshua Yaguda to steal MILLIONS from investors. Oh ya Geahart, Miller and Hurst too. HOB will never get my business.


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“Laid off employees will receive severance packages of at least one month’s pay” and yet Morro Bay’s City manager will get 9 months severance. Anyone wonder why government bodies are always crying for more money? and public employees whine because private sector workers are always mean to them, yeah right.


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I would say that the CEO of any organization (which is exactly what the City Manager is) is much more valuable, as well as is at much higher risk from the board (again, as this City Manager is) than the clerical staff. The skill level is superior and the likelihood of finding similar work is much less. For that reason, executives in both the private and public sector typically have severaance packages as part of their employment contracts.


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Sorry, they all need to just get in line with the rest of us. We are led to believe that companies and/or government will not survive without them and we are conned into these enormous pay outs. Look at Atascadero? McKinney left with $141,000 and Atascadero hasn’t missed a step. In fact I think they are better off than before since the fox has left the hen house.


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I totally agree with Mr. Holly. The days when managers, CEO’s, management, etc. thought they were not replaceable is a joke. Everyone is replaceable! Look at the money given to Lisa (Paso), McKinney (Atas), Schultz (Morro), Muhall (Police Chief in Atas), etc. NONE of these cities missed a beat when these people left and in most (if not all) the cities were better off. We need to start at the top and remove them all and replace with either less pay or less benefits. These people are way overpaid!


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Somehow my post is being misinterpreted to say that people are not replaceable. That is the furthest thing from what I posted. I addressed the risk that they take, the limited number of like jobs and the skills that they posses. Talented people have choices. If Morro Bay, Atascadero or any other city/municipality or business does not offer these types of employment contracts the jobs will go unfilled. If you are trying to lure the top talent you need to compete with others in the market for their services.


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