Business Blog

Banner Bank's proposed acquisition of Home Federal Bank terminated

Here's a news release from Banner Bank, which decided to not match a competing offer to buy Home Federal Bank:

WALLA WALLA, Wash., Oct. 23, 2013 (GLOBE NEWSWIRE) -- Banner Corporation, the parent company of Banner Bank and Islanders Bank, announced today that the Agreement and Plan of Merger it entered into on September 24, 2013 with Home Federal Bancorp, Inc. has been terminated. On October 16, 2013, Home's Board declared that it had received a superior proposal from Cascade Bancorp. Under the terms of the Agreement, Banner had the right to match Cascades' offer through October 22, 2013.

"We spent a significant amount of time analyzing and structuring the transaction with Home and believe that it would have mutually benefited both organizations," said Mark Grescovich, Banner's President and CEO. "While it is unfortunate that the transaction has been terminated, we will maintain our discipline in evaluating future opportunities. That means that we will structure transactions that provide fair value with upside potential to our shareholders. 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. We respect and maintain high regard for everyone at Home Federal and wish them the very best." Grescovich continued, "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."

In connection with the termination of the Agreement, Home paid a termination fee of approximately $3 million to Banner.