Cascade Bancorp And Home Federal Bancorp Agree To Join Forces To Create Premier Northwest Community Bank

   Cascade Bancorp And Home Federal Bancorp Agree To Join Forces To Create
                       Premier Northwest Community Bank

- Transaction will provide significant value to shareholders of both banks

- Acquisition valued at $265.7 million or $17.83 per diluted share as of
October 22, 2013

- Combined bank will have significant scale and market share

-- Creates bank with estimated $2.4 billion in assets, 4th largest community
bank in the Pacific Northwest[1]

-- Doubles Cascade market share in Boise/Treasure Valley

-- Solidifies Cascade #1 market share in Central Oregon

-- Expands Cascade footprint to Eugene, Oregon market

-- Transaction expected to unlock significant efficiency and profitability

-- Resulting company expected to have strong capital, excellent credit quality
and strong earnings prospects

PR Newswire

BEND, Ore., Oct. 23, 2013

BEND, Ore., Oct. 23, 2013 /PRNewswire/ --Cascade Bancorp (NASDAQ: CACB)
("Cascade") the holding company for Bank of the Cascades and Home Federal
Bancorp, Inc. (NASDAQ: HOME) ("Home Federal"), the holding company for Home
Federal Bank, today announced the signing of a definitive agreement and plan
of merger whereby Cascade and Home Federal will merge in a transaction (the
"Transaction") valued at approximately $265.7 million, payable in a mix of
cash and Cascade common stock to Home Federal's stockholders. The combined
company will have approximately $2.4 billion in assets, serving communities
across Oregon and Idaho.

The Transaction is expected to create a premier Pacific Northwest bank with
scale in high growth markets while simultaneously unlocking earnings and
efficiency improvements. A hallmark of the combination between Cascade and
Home Federal is expected to be its strong core deposit base, which will
likely rank among the top banks in the nation. Importantly, the Transaction
provides the opportunity to right-size the branch distribution networks and
infrastructure of the combined bank.

The boards of directors of Cascade and Home Federal unanimously approved the
Transaction, which is subject to regulatory approval, approval by the
shareholders of Cascade and Home Federal, and other customary conditions of
closing. The Transaction provides for the payment to Home Federal shareholders
and option holders of $120.8 million in cash (subject to adjustment based on
closing capital and other adjustments described in the definitive merger
agreement) and 24,309,066 shares of Cascade common stock, subject to

adjustment described in the definitive merger agreement. Based on the closing
price of $5.96 for Cascade shares on October 22, 2013, the transaction would
have an aggregate value of $265.7 million. Cascade expects the Transaction to
be immediately accretive to its earnings per share, excluding one-time
transaction expenses. Upon closing of the Transaction, which is anticipated to
take place in the first quarter of 2014, Home Federal will be merged into
Cascade and Home Federal Bank will be merged into Bank of the Cascades. As of
June 30, 2013, Home Federal had tangible common equity of $168.1 million.

Terry E. Zink, Cascade Bancorp President & CEO, commented "We are truly
pleased to join forces with Home Federal and to provide an opportunity of
unique and compelling value to both organizations. The combination of our two
outstanding franchises will result in a strong balance sheet and capital base,
attractive margins and good earnings potential. For our customers, we believe
the banks are culturally compatible and the combined institution will deliver
an expanded product offering and stronger lending capacity. For shareholders,
we believe the increased scale of the combined company will position our bank
to grow organically while also providing additional strength to pursue future
acquisition opportunities. Finally, for our communities, we believe our
combined organization will provide increased opportunity to deliver the
advantages of community banking and to contribute to regional economic

On a pro-forma basis, Bank of the Cascades would be the #4 largest NW
community bank^(1) after completing the merger. In addition, the combination
represents an opportunity for Cascade to enter the attractive Eugene, Oregon
market to expand its footprint and services in its home state of Oregon.

Len E. Williams, Home Federal President and CEO, commented, "We are very
excited about the Transaction. Home Federal and Cascade have similar cultures,
complementary geographies, and service strengths that make this Transaction a
natural fit. Cascade shares our commitment to customers and community, and
this Transaction is a terrific result for our shareholders. We see great
opportunity in combining to create a bank with enormous potential for future

Cascade's management believes this Transaction represents an opportunity to
realize significant cost savings and, in doing so, allows Cascade to pursue
efficiencies in infrastructure. The annualized combined synergies are
estimated at 24% of the combined core non-interest expense. Deposit cost
reductions and scale efficiencies are currently expected to create opportunity
for the Transaction to result in favorable revenue synergies.

The Transaction is intended to qualify as a tax-free reorganization for U.S.
federal income tax purposes.

Cascade was advised in this Transaction by Macquarie Capital, as financial
advisor, and Hunton & Williams LLP, as legal counsel. Home Federal was advised
by Keefe, Bruyette & Woods, as financial advisor, and Vorys, Sater, Seymour
and Pease LLP, as legal counsel.

Conference Call
A conference call to discuss the Transaction will be hosted by Cascade Bancorp
on October 24, 2013 at 10am Pacific Time. The call may be accessed by dialing
(855) 212-0212 and the conference ID is 491-175-152. A slide presentation to
accompany management's commentary may be accessed from Cascade's October 24,
2013 Form 8-K filing with the Securities and Exchange Commission or at

About Cascade Bancorp
Cascade Bancorp (NASDAQ: CACB), headquartered in Bend, Oregon, and its wholly
owned subsidiary, Bank of the Cascades, operate in the Oregon and Idaho
markets. Founded in 1977, Bank of the Cascades offers full-service community
banking through 32 branches in Central, Southern and Northwest Oregon, as well
as in the greater Boise/Treasure Valley, Idaho area. The Bank has a business
strategy that focuses on delivering the best in community banking for the
financial well-being of customers and shareholders. It executes its strategy
through the consistent delivery of full relationship banking focused on
attracting and retaining value-driven customers.

About Home Federal Bancorp
Home Federal Bancorp (NASDAQ: HOME) is headquartered in Nampa, Idaho and is
the bank holding company for Home Federal Bank, an Idaho state chartered
community bank organized in 1920. Today, with $1 billion in assets, the Home
Federal serves Southwestern Idaho, Central and Western Oregon through 24 full
service branches and three commercial loan production offices.

Cautionary Statement Regarding Forward-Looking Statements
This document contains forward-looking statements within the meaning of the
Private Securities Litigation Reform Act of 1995. Forward-looking statements
are typically identified by words or phrases such as "may," "will,"
"anticipate," "estimate," "expect," "project," "intend," "plan," "believe,"
"target," "forecast" and other words and terms of similar meaning.
Forward-looking statements involve estimates, expectations, projections,
goals, forecasts, assumptions, risks and uncertainties. Cascade cautions
readers that any forward-looking statement is not a guarantee of future
performance and that actual results could differ materially from those
contained in the forward-looking statement. Such forward-looking statements
include, but are not limited to, statements about the benefits of the proposed
merger involving Cascade and Home Federal, including future financial and
operating results, Cascade's or Home Federal's plans, objectives, expectations
and intentions, the expected timing of completion of the merger and other
statements that are not historical facts. Important factors that could cause
actual results to differ materially from those indicated by such
forward-looking statements include risks and uncertainties relating to: (i)
the ability to obtain the requisite Cascade and Home Federal shareholder
approvals; (ii) the risk that Cascade or Home Federal may be unable to obtain
governmental and regulatory approvals required for the merger, or required
governmental and regulatory approvals may delay the merger or result in the
imposition of conditions that could cause the parties to abandon the merger;
(iii) the risk that a condition to the closing of the merger may not be
satisfied; (iv) the timing to consummate the proposed merger; (v) the risk
that the businesses will not be integrated successfully; (vi) the risk that
the cost savings and any other synergies from the Transaction may not be fully
realized or may take longer to realize than expected; (vii) disruption from
the Transaction making it more difficult to maintain relationships with
customers, employees or vendors; (viii) the diversion of management time on
merger-related issues; (ix) general worldwide economic conditions and related
uncertainties; (x) liquidity risk affecting Cascade's ability to meet its
obligations when they come due; (xi) excessive loan losses; (xii) the effect
of changes in governmental regulations; and (xiii) other factors we discuss or
refer to in the "Risk Factors" section of Cascade's most recent Annual Report
on Form 10-K filed with the Securities and Exchange Commission ("SEC") on
March 29, 2013. These risks, as well as other risks associated with the
merger, will be more fully discussed in the joint proxy statement/prospectus
that will be included in the Registration Statement on Form S-4 that will be
filed with the SEC in connection with the merger. Additional risks and
uncertainties are identified and discussed in Cascade's and Home Federal's
reports filed with the SEC and available at the SEC's website at
Each forward-looking statement speaks only as of the date of the particular
statement and neither Cascade nor Home Federal undertakes any obligation to
update or revise its forward-looking statements, whether as a result of new
information, future events or otherwise.

Additional Information about the Proposed Merger and Where to Find It
This document does not constitute an offer to sell or the solicitation of an
offer to buy any securities, or a solicitation of any vote or approval, nor
shall there be any sale of securities in any jurisdiction in which such offer,
solicitation or sale would be unlawful prior to registration or qualification
under the securities laws of any such jurisdiction. In connection with the
proposed merger between Cascade and Home Federal, Cascade will file with the
SEC a Registration Statement on Form S-4, which will include a joint proxy
statement of Cascade and Home Federal that also constitutes a prospectus.
Cascade and Home Federal will deliver the joint proxy statement/prospectus to
their respective shareholders. Cascade and Home Federal urge investors and
shareholders to read the joint proxy statement/prospectus regarding the
proposed merger when it becomes available, as well as other documents filed
with the SEC because they will contain important information about the
proposed merger. You may obtain copies of all documents filed with the SEC
regarding this Transaction, free of charge, at the SEC's website
( You may also obtain these documents, free of charge, from: (i)
Cascade's website ( under the heading "About Us" and then under
the heading "Investor Relations" and then under the heading "Investor
Information" and then under the tab "SEC Filings;" (ii) Cascade upon written
request to Cascade Bancorp, Attn: Investor Relations, 1100 North West Wall
Street, P.O. Box 369, Bend, Oregon 97701; (iii) Home Federal's website
( under the heading "Investor Relations" and then under
the heading "SEC Filings;" or (iv) Home Federal upon written request to Home
Federal Bancorp, Inc., Attn: Eric Nadeau, 500 12th Avenue South, Nampa, Idaho

Participants in the Solicitation
Cascade, Home Federal and their respective directors and executive officers
may be soliciting proxies from Cascade and Home Federal shareholders in favor
of the proposed merger and related matters. Information regarding the persons
who may, under the rules of the SEC, be deemed participants in the
solicitation of Cascade and Home Federal shareholders in connection with the
proposed merger and a description of their direct and indirect interests, by
security holdings or otherwise will be set forth in the joint proxy
statement/prospectus when it is filed with the SEC. You can find information
about Cascade's directors and executive officers in Cascade's definitive proxy
statement filed with the SEC on March 27, 2013 for its 2013 Annual Meeting of
Shareholders. You can find information about Home Federal's directors and
executive officers in Home Federal's definitive proxy statement filed with the
SEC on April 19, 2013. Additional information about Cascade's directors and
executive officers and Home Federal's directors and executive officers can
also be found in the above-referenced Registration Statement on Form S-4 when
it becomes available. Investors should read the joint proxy
statement/prospectus carefully when it becomes available before making any
voting or investment decisions. You can obtain free copies of these documents
from Cascade and Home Federal using the contact information above

SOURCE Cascade Bancorp

Contact: Terry E. Zink, President and Chief Executive Officer, Cascade Bancorp
(541) 617-3527, Gregory D. Newton, EVP and Chief Financial Officer, Cascade
Bancorp (541) 617-3526, Len Williams, President and Chief Executive Officer,
Home Federal Bancorp (208) 468-5048, Eric Nadeau, EVP and Chief Financial
Officer, Home Federal Bancorp (208) 468-5156
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