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Montana bank buying Cascade Bancorp Thursday Nov 17, 2016 at 4:48 PM Nov 18, 2016 at 8:54 AM Greg Stiles Mail Tribune @GregMTBusiness Billings, Montana-based First Interstate BancSystem announced it will acquired Bend-based Cascade Bancorp, which operates five Bank of the Cascade branches in Medford. The Montana bank is paying $589 million or $7.60 per share for the Cascade Bancorp shares. First Interstate presently operates in Montana, South Dakota and Wyoming, while Bank of the Cascades is found in Oregon, Washington and Idaho. First Interstate's assets are expected to grow to $12.1 billion, with $10.1 billion in deposits, after closing in mid-2017. Bank of the Cascades has $3.2 billion in assets, deposits of $2.7 billion and loans of $2.1 billion. Bank of the Cascades was one of many troubled financial institutions that required outside capital following the 2008 banking crash, but was sufficiently recovered by October 2013 to snatch away Home Federal Bank branches from Banner Bank. In November 2012, private investors poured $177 million into Cascades shares, making Leonard Green and W.L. Ross 24.3 percent owners and David Bolger a 14 percent owner. First Interstate President and Chief Executive Officer Kevin Riley said the acquisition was a big step for First Interstate, giving it a presence from the Pacific Coast to the Black Hills. "This opportunity is a good fit for us geographically, strategically, financially and culturally," Riley said. Cascades shareholders will own approximately 20 percent of the outstanding First Interstate stock once the transaction is complete. Two members of the Cascades board will be added to the First Interstate board. — Reach reporter Greg Stiles at 541-776-4463 or [email protected]. Follow him on Twitter at www.twitter.com/GregMTBusiness, on Facebook at www.facebook.com/greg.stiles.31