Banner Bank's proposed acquisition of Home Federal was called off after Banner decided not to meet a stronger proposal from a competitor.
Banner announced last month that it was acquiring Home Federal, which is based in Nampa, Idaho, and has 24 branch offices. On Wednesday, Oct. 16, Home Federal's board of directors announced it had received a better offer from Cascade Bancorp, the holding company for Bank of the Cascades, based in Bend, Ore.
Cascade's offer is valued at $265.7 million, according to a news release. Banner originally offered $197 million, and had until Tuesday, Oct. 22, to match Cascade's offer.
In connection with the termination of the agreement, Home paid a termination fee of approximately $3 million to Banner.
"We spent a significant amount of time analyzing and structuring the transaction with Home and believe that it would have mutually benefited 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. Banner will continue to proactively seek acquisition opportunities in our markets, including Boise, and look forward to partnering with companies that share our goal of becoming the premier bank in the Northwest," Grescovich said.