SAN LUIS OBISPO, Calif. -

Heritage Oaks Bank and Mission Community Bank announced on Monday plans to merge creating the largest community bank headquartered on the Central Coast.

The deal includes $8 million in cash and 7,541,353 shares of Heritage Oaks common stock valued at $56.4 million dollars or $6.42 per share.

The agreement still needs shareholder and regulatory approvals. Officials for both banks expect the merger to close in February, 2014.

Current Heritage Oaks Bancorp President and CEO Simone Lagomarsino will hold the same position with the newly formed bank.

Mission Community Bank was founded in 1997 and is headquartered in San Luis Obispo. It has five branch offices from Paso Robles to Santa Maria.

Heritage Oaks Bank was founded in 2000 and is headquartered in Paso Robles.

Officials for both banks said there would be no changes to employees or customers before the merger is complete.