Home Federal Bancorp, Inc. (HOME: Quote) said on Friday that its subsidiary Home Federal Bank has acquired the banking operations of Community First Bank of Prineville, Oregon, in a transaction facilitated by the Federal Deposit Insurance Corporation, or FDIC.
Based on preliminary financial information as of July 26, the acquisition by Home Federal Bank includes about $148 million of loans and $147 million of deposits, which includes all insured and uninsured deposits with the exception of brokered deposits, which were exempted from the transaction by the FDIC. Other real estate owned acquired in the transaction is about $12 million. The transaction also includes the purchase of cash and securities and the assumption of about $18.0 million of borrowings from the Federal Home Loan Bank of Seattle, as well as other assets and liabilities.
Home Federal Bank acquired the assets of Community First Bank at a discount of $36.5 million and the deposit liabilities at a deposit premium of 1.0%, excluding brokered deposits. The purchased loans and real estate owned are covered by a loss share agreement between the FDIC and Home Federal Bank. Under the loss share agreement, the FDIC has agreed to cover 80% of the losses on the disposition of the loans and real estate owned up to $34 million, and 95% of losses that exceed that amount.
Banking offices previously operated by Community First Bank will reopen as branches of Home Federal Bank on August 10, 2009, according to their prior normal operating hours. Home Federal Bank has an option to purchase all or some of the banking facilities and assume any leases within 90 days from August 7. The purchase of any of the branches is not included in the discount.
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by RTT Staff Writer
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