![]() "The economic recession severely impacted the Snohomish County area and Cascade Bank," said Carol K. The definitive merger agreement with Opus Bank was unanimously approved by the Boards of Directors of Cascade Financial, Cascade Bank and Opus Bank.Īs a result of the proposed transaction, Cascade Bank expects to benefit from Opus Bank's strong capital position. Last year, Opus Bank successfully completed a recapitalization, infusing a total of $460 million of new capital into the bank. Opus Bank's growth goals include the creation of a strong super-regional banking franchise in the Western United States, encompassing the states of Washington, Oregon, California, Arizona and Nevada. Since July of 2010, Cascade Bank has been operating under a Consent Order with the FDIC under which Cascade Bank is required to increase its capital ratios. As of December 31, 2010, Cascade Bank required approximately $68 million in new capital to meet the minimum Tier 1 leverage ratio requirement of 10% under the Consent Order. Since late 2009, Cascade Financial's Board and management team have been reviewing alternatives to improve the bank's capital position with the assistance of its financial advisor, Sandler O'Neill + Partners LP, a nationally recognized investment banking firm and expert in the banking industry. As part of its review, the Board of Directors considered a range of alternatives including potential capital infusions from private investors and financial institutions, strategic combinations and private equity transactions, and actively solicited offers from potential investors and acquirers. In addition, Opus Bank will assume all of Cascade Financial's obligations with respect to trust preferred securities issued by Cascade Financial's trust subsidiaries. ![]() The purchase price for Cascade Financial's common stock represents approximately $0.45 cash per share outstanding. ![]() ![]() According to the terms of the agreement, Opus Bank will pay approximately $16.25 million to retire Cascade Financial's $39 million in preferred stock and associated warrants issued to the United States Department of the Treasury under the Treasury's Capital Purchase Program, and $5.5 million in cash to the holders of Cascade Financial's common stock. EVERETT, Wash., Ma(GLOBE NEWSWIRE) - Cascade Financial Corporation ("Cascade Financial") (Nasdaq:CASB), parent company of Cascade Bank, today announced that Cascade Financial, Cascade Bank (the "Bank") and Opus Bank, Irvine, CA, have entered into a definitive agreement, providing for Opus Bank to acquire Cascade Financial and its principal operating subsidiary, Cascade Bank, and for the merger of Cascade Bank into Opus Bank. ![]()
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