Cascade Bancorp in Bend, Ore., has agreed to buy Prime Pacific Financial Services in Lynwood, Wash.
The $2.5 billion-asset Cascade said in a press release Tuesday that it will pay $17.1 million, or $1.79 a share, in stock for the $119.4 million-asset Prime Pacific. The deal is expected to close in the third quarter.
Cascade said it expects the transaction will result in modest earnings accretion next year, excluding one-time costs, and 5% accretion in 2017. The transaction is projected to be immediately accretive to tangible book value and capital.
"This opportunity expands our commercial banking footprint in the strong Seattle market,” Terry Zink, Cascade’s president and chief executive, said in the release. “Prime Pacific's solid commercial and SBA lending expertise is consistent with our strategy to increase our market share of commercial loans in fast-growing Northwest metropolitan markets.”
Piper Jaffray and Hunton & Williams advised Cascade. D.A. Davidson and Miller Nash Graham & Dunn advised Prime Pacific.