EXHIBIT 99.1

Heritage Oaks Bancorp Announces Results for the First Quarter, 2012 and Termination of the Bank's Consent Order With the California Department of Financial Institutions and the FDIC

• First quarter net income was $1.6 million, $2.5 million below fourth quarter, 2011
• Provision for loan losses was $3.3 million, up $2.6 million due primarily to a single loan relationship
• Allowance for loan losses was $19.8 million or 3.07% of gross loans reflecting119% coverage over non-performing loans
• Net interest margin increased to 4.72%, 5 basis points above prior quarter
• Total deposits increased $20.2 million or 2.6% over fourth quarter, 2011 to $806.4 million while gross loans remained flat to prior quarter at $645 million
• The Company released $0.8 million from its deferred tax asset valuation reserve in first quarter 2012 as compared to $1.5 million released in fourth quarter, 2011
• Effective April 16, 2012, the FDIC and California Department of Financial Institutions terminated the Joint Consent Order issued on March 4, 2010

PASO ROBLES, Calif., April 23, 2012 (GLOBE NEWSWIRE) -- Heritage Oaks Bancorp (the "Company"), (Nasdaq:HEOP), the parent company of Heritage Oaks Bank (the "Bank"), today reported net income of $1.6 million, $2.5 million less than fourth quarter, 2011 and $1.1 million higher than first quarter, 2011. The decrease in net income from prior quarter was driven by a $2.6 million increase in provision for loan losses, which resulted from deterioration in one loan relationship. Also contributing to the linked-quarter decrease was a $0.7 million decline in the level of deferred tax asset valuation allowance reversal in the first quarter of 2012 as compared to the prior quarter. The net income in first quarter represented six consecutive quarters of profitability. After incorporating accrued dividends and accretion on preferred stock of $0.4 million, the net income applicable to common shareholders for first quarter was $1.2 million. Net income per basic and diluted common share was $0.05 in the first quarter; $0.11 and $0.10 less than the basic and diluted earnings per share, respectively, reported in the fourth quarter, 2011.

On a pre-tax, pre-loan loss provision basis, the Company earned $4.5 million in the first quarter, $0.4 million less than the fourth quarter, 2011. This decrease was due to $0.2 million less net interest income and $0.7 million less in non-interest income, due to $0.5 million less gain on sale of securities and $0.2 million less in mortgage gain on sale and origination fees. Partly offsetting these declines was $0.5 million less in non-interest expenses.

The increase in the provision for loan losses in the first quarter of 2012 is largely attributable to deterioration in a single credit relationship, which aggregates to over $10.0 million. Although the borrower had been performing under the terms of the related loans, it became apparent during the first quarter that repayment in full upon the loans' maturity date in the second quarter of 2012 would not occur. Accordingly, the related loans were downgraded to substandard, transferred to non-accrual status, determined to be impaired and an appropriate provision was recorded according to a collateral-based specific reserve analysis. In addition, this single credit relationship also drove higher levels of classified and non-accrual loans which have been declining over the past four quarters. Both the level of special mention loans and delinquent loans greater than 30 days declined in first quarter.

Effective April 16, 2012, the FDIC and California Department of Financial Institutions ("DFI") terminated the Joint Consent Order ("Order") issued March 4, 2010. In connection with the termination of the Order, the Bank's Board of Directors executed a Memorandum of Understanding ("MOU") with the FDIC and DFI. Under the MOU, the Bank committed to continue to: maintain a minimum Tier 1 Leverage Ratio of 10%; obtain regulatory approval for any dividend payments from the Bank; obtain regulatory approval for the opening of new branch locations; and continue to make progress in improving credit quality and processes. The lifting of the Order reflects the progress the Bank has made in improving credit quality, strengthening capital, enhancing oversight and hiring qualified management as stated in the terms of the Order. "The removal of the Order is testament to the hard work of the entire Heritage Oaks Bank team in addressing the requirements of the Order. Our capital position has been strengthened, the Bank's profitability has improved, and we will continue to focus on improving credit quality and operating efficiency," said Simone Lagomarsino, CEO and President.

"In line with our strategic objectives, first quarter progress was notable in several areas including termination of the Consent Order, improving operating efficiency and growing the business. We are on track to consolidate three of our smaller branches into other nearby branches in second quarter and we have continued to rationalize and flatten the organizational structure. We have also completed the acquisition of our Paso Robles headquarters' building, main branch and 2 other branches at favorable terms that will help lower operating costs today and, increasingly over the longer term. From a business growth perspective, our branches had excellent success in contributing to the $20.2 million increase in deposits this quarter. We also identified and leased a new location as our entry point into Ventura County with a new loan production office which will open in June, 2012.  The size and opportunity in the Ventura County market is greater than the size and opportunity in Santa Barbara and San Luis Obispo Counties combined. In addition, we have just hired a team of 5 seasoned loan officers to accelerate growth in our SBA and agricultural lending portfolios," concluded Ms. Lagomarsino.   

First Quarter Operating Results

Net interest income was $10.7 million in the first quarter, down $0.2 million from fourth quarter as average securities balances were lower in first quarter driven by a decline in deposit balances in the prior quarter, partially offset by higher net interest margin in the first quarter, 2012. A $20.2 million increase in deposits that occurred in March, helped to increase the level of investment securities in the same month which should benefit net interest income in the coming quarter. Net interest margin reached 4.72%, up 5 basis points from the prior quarter. We continue to anticipate some net interest margin pressure in future periods due to the competitive environment for loan relationships, refinance activity and the mix of our earning assets. Partly offsetting net interest margin pressure has been the steady decline in cost of deposits, which has been declining nearly 6 basis points on average each quarter for the last 5 quarters, largely as the result of:  certificates of deposit renewing at lower rates or transferring into other lower cost deposit types at maturity, favorable composition of deposits with a large percentage of low cost demand deposits, and the pricing strategy.

Non-interest income totaled $2.5 million in the first quarter, $0.7 million lower on a linked-quarter basis. The decrease was primarily due to a reduction in the volume of security sales, which reduced the level of gains realized from $0.8 million in fourth quarter, 2011 to $0.3 million in first quarter, 2012 and $0.2 million less in mortgage gain on sale and origination fees.  Fourth quarter, 2011 security gains were particularly strong as the Company took the opportunity to sell off some of its older, less liquid, odd-lot municipal bonds at substantial gain. Mortgage origination and sales volumes were $41.1 million in the first quarter, $7.6 million less than the prior quarter.

Non-interest expense declined $0.5 million from prior quarter. This decrease is primarily due to $0.2 million write-down on foreclosed assets in prior quarter versus no write-downs in first quarter, $0.1 million less in audit and tax service expense, $0.3 million less consulting costs and $0.1 million less in general operating costs.  Partly offsetting these declines was a $0.3 million increase in salaries and benefits mainly attributable to severance cost associated with the three branch closures and flattening of the organizational structure.  As noted last quarter, non-interest expenses are anticipated to contract as credit quality continues to improve, FDIC deposit insurance costs decline in second half of 2012, and the recent cost reduction strategies impact a full quarter, partially offset by recent sales staff hires.

The Company recorded a $0.4 million provision for income taxes for the first quarter, 2012 and released $0.8 million from the deferred tax asset valuation reserve as a credit to income tax expense, resulting in a net income tax benefit of $0.4 million. The remaining deferred tax asset valuation allowance was $4.8 million on March 31, 2012. To the extent the Company returns to more normalized credit provisioning and is confident that it will return to a cumulative three year earnings position, the valuation allowance will be reversed. The deferred tax asset valuation allowance is discussed in more detail later in this press release. 

On a pre-tax basis, first quarter, 2012 earnings were $1.2 million, down $3.0 million from prior quarter. Excluding the provision for loan losses the first quarter pre-tax, pre-provision for loan loss earnings were $4.5 million, down $0.4 million from prior quarter and up $1.8 million or 65% above first quarter, 2011.

Asset Quality:  Non-accrual loans increased $4.3 million to $16.7 million and total non-performing assets increased $4.2 million to $17.6 million since year-end 2011. Both categories were driven higher by the transfer into non-accrual of the single credit relationship mentioned earlier.  Non-performing loans to gross loans was 2.58% and non-performing loans to total assets was 1.65% in first quarter in comparison to 4.07% and 2.80%, respectively, at the end of the first quarter, 2011.  Non-performing assets to total assets was 1.74%, up from 1.35% in prior quarter and improved from 3.43% from first quarter, 2011.  The negative change in these ratios from prior quarter was primarily due to the single credit relationship previously disclosed.  All of the loans included in this single credit relationship were accruing and designated as special mention loans at the end of 2011.  Excluding this single credit relationship, the non-accrual loan balance would have declined $4.9 million or 40% from prior quarter's $12.4 million balance. The Company is vigorously pursuing all avenues in an effort to recoup all amounts owed on these loans.

Classified Loans in first quarter were $61.1 million, up $7.1 million from prior quarter, yet $13.7 million below first quarter, 2011. The negative variance is primarily due to the single credit relationship mentioned earlier.  Classified assets, inclusive of classified loans, were $62.3 million, $2.3 million above fourth quarter, 2011 and $19.5 million below first quarter, 2011. The $2.3 million increase in classified assets on a linked quarter basis was impacted by the downgrade of the single large loan relationship which was partially offset by sale of the $4.3 million of classified loans, previously marked to fair value in the fourth quarter of 2011, and first quarter 2012 total gross charge-offs of $3.1 million. Of the $61.1 million of classified loans, $44.5 million or 72.7% were still accruing.   

Other Real Estate Owned at March 31, 2012 was $0.9 million, flat to the prior quarter. Loans delinquent 30-89 days have remained very low for several quarters at $0.6 million or 0.1% of total gross loans in first quarter as compared to $0.8 million or 0.1% in prior quarter. Troubled debt restructures ("TDRs") were $3.1 million at quarter-end, down $0.6 million from fourth quarter, 2011. 

Provision for loan losses increased from $0.7 million in the fourth quarter, 2011 to $3.3 million in the first quarter this year. Excluding the impact of the previously mentioned single credit relationship noted earlier, the provision for loan losses would have declined by $1.8 million due to continued improvement in historical loss rates and qualitative factors which drive the general reserve calculation. Gross charge-offs totaled $3.1 million a portion of which is derived from the single credit relationship previously described. First quarter credit recoveries were $0.2 million resulting in total net charge-offs of $2.9 million or 1.75% of average total loans on an annualized basis.

At March 31, 2012 the allowance for loan losses was $19.8 million or 3.07% of total loans compared to $19.3 million or 2.99% in the prior quarter.  The allowance for loan losses reflected 119% coverage over non-performing loans of $16.7 million.  Total classified assets as a percent of Tier 1 Capital plus allowance for loan losses was 45.8% in comparison to 44.3% at end of 2011 and down from 62.5% at March 31, 2011. 

A summary of key metrics related to asset quality follows (dollars in millions):

Balance Sheet: Total assets as of March 31, 2012 were $1.0 billion, $21.6 million higher than reported in the prior quarter. The primary changes in earning asset mix was a $30.0 million increase in the investment securities portfolio which mainly occurred in March as deposits increased and market rates rose. In first quarter 2012, the Company sold $12.5 million of securities, comprised of agency mortgage backed securities ("MBS") and non-agency commercial mortgage backed securities ("CMBS"). The sales were targeted at select CMBS issues that had appreciated in price but were beginning to realize some credit deterioration, in addition to fast paying agency mortgage backed securities. The net gain on securities sold in first quarter was $0.3 million and the unrealized gain at quarter-end on the entire portfolio was $3.7 million. Proceeds from the sales were largely reinvested back into new issue CMBS with better credit profiles and agency backed MBS and collateralized mortgage obligations ("CMO") with better return profiles and limited exposure to refinance risk. Municipals comprise 23% of the portfolio, corporate bonds 11%, mortgage-backed securities 63% (including agency issued of 51%), and other 3%. At March 31, 2012, the portfolio had an average duration of 3.48 years with a weighted average credit rating of AA.  

Gross loans were largely flat in first quarter at $645.5 million, $0.8 million less than the prior quarter. The Bank plans to open the Ventura County loan production office in June, and has recently hired five additional lenders which we anticipate will accelerate growth in the loan portfolio, with an emphasis on the SBA and agricultural segments.  Loans held for sale declined $8.1 million mainly due to the sale of $4.3 million of classified loans that were marked to fair value and transferred into held for sale in fourth quarter, 2011 and sold in January 2012.  Average non-earning assets such as non-interest bearing cash and property and equipment increased $4.9 million primarily due to the previously mentioned purchase of the Company's administrative headquarters and three branch buildings.  

Residential Mortgage Loan originations, which are largely sold to investors, were $41.1 million in first quarter a decline from the fourth quarter originations of $48.7 million, which was the best production quarter in 2011. Continued low interest rates, an increased sales force, and expansion into Ventura County should help fuel growth of this business in 2012. Gain on sale of consumer mortgages and related fees contributed $0.9 million to non-interest income in first quarter, down $0.2 million compared to the prior quarter.

Total Liabilities grew $18.6 million on a linked-quarter basis to $876.2 million as compared to $857.6 million in the fourth quarter, 2011. Total Deposits were $806.4 million, $20.2 million above prior quarter. Non-interest bearing demand deposit account ("DDA") balances surged $10.1 million and Savings/NOW/Money Market Accounts grew $8.4 million to $384.7 million largely due to a very successful deposit gathering campaign coupled with seasonality factors.  Non-interest bearing DDA deposits comprised 28% of total deposits and core deposits, defined as deposits exclusive of certificates greater than $100 thousand, were 88% of total deposits as of March 31, 2012.

Federal Home Loan Bank ("FHLB") borrowings increased $1.0 million to $52.5 million at the end of first quarter which were split between $23.5 million in short-term advances and $29.0 million in longer-term borrowings which the Company has laddered out over 10 years.

Deferred Tax Assets:  The Company's gross deferred tax asset at March 31, 2012 was $22.8 million, down $1.0 million from prior quarter and down $5.4 million from December 31, 2010.  These decreases are largely due to tax return timing differences driven by a decrease in the allowance for loan losses since December 31, 2010, as well as the decline in overall valuation allowances for foreclosed assets. In 2010 the Company had established a partial deferred tax asset valuation allowance of $7.1 million due to concerns that it was not "more likely than not" that it would realize 100% of the value of such assets. This partial valuation allowance was determined based on the results of the Company's model of deferred tax asset utilization over future periods. At that time, gross deferred tax assets had been $28.2 million and management determined that it was uncertain whether the Company would have sufficient future profitability to utilize all of its deferred tax assets.  In 2011, the Company significantly improved pre-tax earnings by $28.9 million over prior year, monitored its deferred tax asset position and refrained from releasing any of its valuation allowance until such time that profitability was adequately demonstrated, credit quality was improved, and updated projections of future earnings were solidified as part of the Company's annual strategic planning process in the fourth quarter of 2011. 

At the end of fourth quarter, 2011 the Company modeled its projected pre-tax earnings available for deferred tax asset utilization against the timing differences as of December 31, 2011 and determined that $1.5 million of its existing $7.1 million valuation allowance was no longer required. Similarly, in the first quarter, 2012 the Company released $0.8 million using the same methodology. In 2012, to the extent the Company continues to demonstrate profitability and as timing differences reverse, we would expect the deferred tax valuation allowance to continue to decrease or, potentially, reverse in full when management determines that it is "more likely than not" that the deferred tax assets will be fully realized in future periods. The remaining deferred tax asset valuation allowance of $4.8 million will result in an incremental increase of 19 cents per share upon its full reversal.

Capital Position:  As of March 31, 2012, Heritage Oaks Bancorp continued to add to its strong capital position and remains well above all regulatory minimums. Heritage Oaks Bank, similarly, also grew capital and remains well above all regulatory minimum capital ratios.  Both the Company and the Bank are committed to maintaining strong capital levels and active capital management to anticipate risk, support balance sheet growth and to provide adequate return to our shareholders.

Liquidity:  Our Liquidity ratio (total cash and equivalents plus unpledged marketable securities divided by the sum of total deposits and short-term liabilities less pledged securities) remained very strong at 35.9% at the end of the first quarter, 0.8% higher than the prior quarter. At quarter-end, the Bank had remaining borrowing capacity with the FHLB of approximately $156 million, which increased by 6.7% from prior quarter-end due to normal utilization. The Bank also has a collateralized borrowing facility with the Federal Reserve Bank of $7.4 million and has the ability to purchase federal funds under a correspondent bank line of credit in the aggregate amount of $15.0 million as of March 31, 2012. Additionally, $263 million of the Company's $267 million investment portfolio was unpledged and available as on-balance sheet liquidity as of quarter-end.

Conference Call

Heritage Oaks Bancorp will host a conference call to discuss these first quarter results at 8:00 a.m. PDT on April 24, 2012. Media representatives, analysts and the public are invited to listen to this discussion by calling (877) 363-5052 and entering the conference ID 69608319, or via on-demand webcast. A link to the webcast will be available on the Heritage Oaks Bancorp's website at www.heritageoaksbancorp.com. A replay of the call will be available on Heritage Oaks Bancorp's website later that day and will remain on its site for up to 14 calendar days.

About the Company

Heritage Oaks Bancorp is the holding company for Heritage Oaks Bank which operates as Heritage Oaks Bank and Business First, a division of Heritage Oaks Bank. Heritage Oaks Bank is headquartered in Paso Robles and has two branches in Paso Robles and San Luis Obispo, single branch in Cambria, Arroyo Grande, Atascadero, Templeton, and Morro Bay and three branches in Santa Maria. Heritage Oaks Bank conducts commercial banking business in San Luis Obispo County and Northern Santa Barbara County. The Business First division has two branches in Santa Barbara. Visit Heritage Oaks Bancorp on the Web at www.heritageoaksbank.com.

The Heritage Oaks Bancorp logo is available at http://www.globenewswire.com/newsroom/prs/?pkgid=7045

Forward Looking Statements

Statements concerning future performance, developments or events, expectations for growth, income forecasts, sales activity for collateral, credit quality and any other guidance on future periods constitute forward-looking statements that are subject to a number of risks and uncertainties. Actual results may differ materially from stated expectations. Specific factors include, but are not limited to the continued weak economic recovery in the United States and the markets in which the Company operates, and the response of the federal and state government and our regulators thereto, the effects on our operations of the enforcement actions we are subject to, continued growth, the Bank's beliefs as to the adequacy of its existing and anticipated allowances for loan losses, beliefs and expectations regarding actions that may be taken by regulatory authorities having oversight of the Bank's operations, interest rates and financial policies of the United States government, continued weakness in the real estate markets within which we operate and general economic conditions in both the United States and abroad. Additional information on these and other factors that could affect financial results are included in Heritage Oaks Bancorp's Securities and Exchange Commission filings. If any of these risks or uncertainties materialize or if any of the assumptions underlying such forward-looking statements proves to be incorrect, Heritage Oaks Bancorp's results could differ materially from those expressed in, implied or projected by such forward-looking statements. Heritage Oaks Bancorp assumes no obligation to update such forward-looking statements.

The following tables reconcile the quarter to date changes in the balance of OREO during 2012:

CONTACT: Simone Lagomarsino, CEO
         805-369-5260

         Tom Tolda, CFO
         805-369-5107