Home Federal reports losses associated with pulling out of merger

Boise - The Idaho StatesmanJanuary 24, 2014 

Home Federal reported a quarterly and annual loss, which reflected the $3 million it paid after breaking its deal to sell to Banner Bank in order to accept a higher bid from Bank of the Cascades.

Home Federal Bancorp, the parent company of Nampa-based Home Federal, reported losses of $2.3 million for the quarter ending Dec. 31 and of $255,000 for 2013.

The losses were expected. They reflect money changed hands with other banks as a result of bids to buy Home Federal and not the the performance of Home Federal.

In September, Banner Bank announced it was buying Home Federal for $197 million. Five weeks later, Home Federal pulled out of the deal and instead accepted Bank of the Cascades' purchase offer of $265.7 million.

Home Federal's contract with Banner included a "go-shop" clause, which allowed Home Federal to accept blind bids from Bank of the Cascades and several other suitors. However, Home Federal was required to pay $3 million to Banner after breaking the contract.

 

 

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