Heritage Oaks Bancorp proposed sale under scrutiny

December 13, 2016

heritage-oaks-bancorpShortly after Heritage Oaks Bancorp announced that Pacific Premier Bancorp of Irvine planned to acquire its banks through a $405.6 million stock transaction, a national attorney firm began questioning the logistics of the proposed deal.

Heritage Oaks Bancorp has 12 branches in San Luis Obispo and Santa Barbara Counties and approximately $2 billion in assets. If the acquisition is approved, Pacific Premier Bank will have 28 branches and approximately $6 billion in assets.

Under the terms of the definitive agreement, Heritage Oaks common stock holders will have the right to receive 0.3471 shares of Pacific Premier common stock for each share of Heritage Oaks common stock they own. Based on a $33.65 closing price of Pacific Premier’s common stock on Dec. 12, the aggregate merger consideration is approximately $405.6 million or $11.68 per share of Heritage Oaks common stock.

Earlier today, the law firm of Johnson & Weaver, LLP announced it had launched an investigation into allegations that Heritage Oaks Bancorp Board members breached their fiduciary duties in connection with the proposed sale. Specifically, did the board adequately pursue alternatives to the acquisition and did the board obtain the best price possible for Heritage Oaks stock?

“If you are a shareholder of Heritage Oaks and believe the proposed buyout price is too low and you’re interested in learning more about the investigation or your legal rights and remedies, please contact lead analyst Jim Baker (jimb@johnsonandweaver.com) at 619-814-4471,” the announcement says.

If the merger is approved, Pacific Premier plans to continue employing Heritage Oaks Bancorp’s relationship bankers and some members of the leadership team, including Rob Osterbauer and Brooks Wise, according to a press release.

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In the world of mega banks, there isn’t much of a need/reason for local.

I’ve been going back and forth about switching my account from HOB back to one of the huge and “evil” megabanks and this might push me there. HOB service doesn’t seem as friendly or local as it once did and the bank has been doing little add-ons like a $2.00 charge for a “foreign” (non-HOB) ATM transaction on top of the $2.00-$3.00 charge already imposed by the foreign bank. With HOB ATMs few and far between, the $2.00 charges start to add up.

If they are bought out, maybe their customer service would improvement in Cambria. Customer service stinks in Cambria.

What do you mean acquiring $2 billion in assets for $405 million in stock raises red flag? Seems perfectly legit in the world of finance! Just shut up and pay more in taxes, fines and fees!

I hope the sale goes thru if it results in the tearing down of their headquarters on Vine Street in Paso. With no regard for the community they leveled a beautiful church building and put a pastel colored box in its place.