UPDATE: D.A. Davidson & Co. Reiterates on Cascade Bancorp Following Deal with Home Federal

In a report published Friday, D.A. Davidson & Co. analyst Jeff Rulis reiterated a Neutral rating on Cascade Bancorp CACB, but lowered the price target from $6.25 to $6.00. In the report, D.A. Davidson & Co. noted, “Cascade swoops in with higher offer. Home Federal (HOME – BUY- $15.30) shareholders will receive $17.83 per share in a mix of roughly 55% stock of CACB and 45% cash. The deal is valued at approximately $265.7 million, which equates to 1.54x HOME's 9/30/13 tangible common equity. Home had previously entered into a merger agreement with Banner Corporation (BANR* - NEUTRAL - $38.85) on September 24th; however, this agreement has been terminated. CACB's offer of $17.83 represents a 35% premium over BANR's offer of $13.20. Cascade will double the size of its market share in Boise, solidify the number #1 market share position in Central Oregon, and expand its footprint to the Eugene, OR market. Cascade expects annualized synergies of ~24% of the combined core non-interest expense with the possibility of revenue synergies. The combined organization will have approximately $2.4 billion in assets.” Cascade Bancorp closed on Thursday at $5.64.