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, 4^th 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

BEND, Ore., Oct. 23, 2013 (GLOBE NEWSWIRE) -- 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 Federalis 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

^(1) Defined as headquartered in Washington, Oregon, and Idaho with total
assets of $10 billion or less

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
Press spacebar to pause and continue. Press esc to stop.