The parent company of Bend-based Bank of the Cascades has entered into a deal to buy Idaho-based Home Federal Bankcorp. Should regulators approve the deal, Cascade Bankcorps would become largest bank in Central Oregon and gain an expanded footprint in the region.
Cascades will pay nearly $266 million in cash and stock to acquire Home Federal. And once complete, the new combined bank will have more than 2.4 billion dollars in deposits and a total 56 branches in Oregon, Idaho and Washington.
According to documents filed with the SEC, two thirds of Home Federal branches are located near Bank of the Cascades branches.
And in a conference call today with investors, Cascade CEO Terry Zink said at least some of those Home Federal branches are likely to close.
“I don’t know that we’ve actually sat down and penciled everything out to say this is exactly what we would do, but I think it would be safe to say that there would be some branch consolidation,” said Zink.
Zink says some existing Cascades branches will close, too. The deal is expected to be finalized at the end of March.