Banner Corp. of Walla Walla said Wednesday that it won’t up its price for Home Federal Bancorp, allowing the much smaller Cascade Bancorp of Oregon to prevail with a significantly richer offer for the 24-branch Idaho bank.
Banner announced in September a definitive agreement to buy $1 billion-asset Home Federal for cash and stock worth $197 million at the time. Cascade topped that with a $266 million cash and stock bid last week, and Banner’s option to match the offer expired Oct. 22, the bank said.
Mark Grescovich, president and CEO of $4.2 billion-asset Banner, said the company “will maintain our discipline in evaluating future opportunities” and will seek other acquisitions in its markets, including Idaho.
Cascade said its acquisition of Home Federal will create a bank with about $2.4 billion in assets, making it the fourth-largest community bank in the Pacific Northwest.