Cascade Bancorp (CACB) Wednesday agreed to merger with Home Federal Bancorp Inc. (HOME) in a cash and stock deal valued at about $265.7 million.
The deal is to create a premier Pacific Northwest bank with scale in high growth markets while unlocking earnings and efficiency improvements, the companies said.
The deal has been approved by boards of both companies and is subject to customary closing conditions.
The deal provides for the payment to Home Federal shareholders and option holders of $120.8 million in cash and about 24.3 million shares of Cascade common stock. Based on the closing price of $5.96 for Cascade shares on October 22, the deal would have an aggregate value of $265.7 million.
Cascade expects the deal to be immediately accretive to its earnings per share, excluding one-time transaction expenses.
Upon closing of the deal, which is anticipated to take place in the first quarter of 2014, Home Federal will be merged into Cascade and Home Federal Bank will be merged into Bank of the Cascades.
The combined company will have about $2.4 billion in assets, serving communities across Oregon and Idaho.
The deal is intended to qualify as a tax-free reorganization for U.S. federal income tax purposes.
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