California Bank Agrees to Acquire Cascade Bank in Washington

Opus Bank has entered an agreement to acquire Washington-based Cascade Financial and its subsidiary Cascade Bank.

The California-based Opus Bank makes the move as Cascade Financial was placed under an order from the FDIC to increase their capital. Opus will pay roughly $16 million to end Cascade’s $39 million in preferred stock, and another $6 million to the holders of Cascade’s common stock.

Cascade bank needed around $70 million in new capital to meet the requirements of the consent order placed by the FDIC. As of December 31, 2010, Cascade had assets totaling $1.5 billion and deposits of around $1 billion. When the ink is dry, Cascade’s 218 employees will be transferred to Opus Bank’s team.

The merger has to be approved by Cascade’s shareholders, and will likely close in the second quarter of 2011.