There will be another banner hanging over the Home Federal branches in Southern Oregon, but it won't belong to Walla Walla, Wash.-based Banner Bank.
On the way down the aisle to tie the financial knot, the bride got enticed by another last-second suitor.
Instead of wedding Banner Corp., the Nampa, Idaho-headquartered Home Federal bank's board decided to exchange vows with Bend-based Bank of the Cascades.
Bank of the Cascades said Wednesday it will purchase Home Federal Bank for an estimated $265.7 million, about 35 percent more than Banner Corp would have paid for the keys to 32 branches in Oregon and Idaho.
While Banner said last month it looked at Home Federal as an entry into the Boise and Southern Oregon markets, Bank of the Cascades will gain a foothold in the Eugene area and double its presence in the Treasure Valley in Eastern Oregon and Southwest Idaho.
Home Federal operates a branch on Biddle Road in Medford and one in Grants Pass. Bank of the Cascades has offices on Crater Lake Highway in northeast Medford and Barnett Road in southeast Medford, as well as two in Grants Pass.
Once the deal is consummated, Bank of the Cascades will have about $2.4 billion in assets. The company said the deal will provide Home Federal shareholders $120.8 million in cash and more than 24,000 shares of Cascades' common stock.
Cascade Bancorp Chief Executive Officer Terry Zink told the Portland Business Journal he immediately thought his organization could easily top Banner's offering. Given a 30-day "go-shop" window, he had to move fast.
"When I saw the deal announced with Banner, I felt pretty strongly we should at least enter an offer," Zink told the Business Journal. "It is a shorter time than I would like, but we're very comfortable with the portfolio."
For its trouble, Banner received a $3 million opt-out fee.
"We spent a significant amount of time analyzing and structuring the transaction with Home and believe that it would have mutually benefitted both organizations," Mark Grescovich, Banner's president and CEO, said in a news release. "While it is unfortunate that the transaction has been terminated, we will maintain our discipline in evaluating future opportunities. Our agreement with Home struck that balance and we continue to believe it was a transaction that would have added significant value to their customers, employees and communities. Banner will continue to proactively seek acquisition opportunities in our markets, including Boise."
Reach reporter Greg Stiles at 541-776-4463 or firstname.lastname@example.org. Follow him at Twitter.com/GregMTBusiness.