NEW YORK, Dec. 9, 2016 /PRNewswire/ -- WeissLaw LLP is investigating possible breaches of fiduciary duty and other violations of law by the Board of Directors of Cascade Bancorp ("CACB" or the "Company") in connection with the proposed acquisition of the Company by First Interstate BancSystem Inc. ("FIBK"). On November 17, 2016, CACB announced it had reached a definitive agreement for FIBK to acquire all outstanding shares of CACB in a cash-and-stock transaction valued at $589 million. Under the terms of the agreement, CACB shareholders will receive 0.14864 of a FIBK class A share and $1.91 in cash for each CACB share owned.
WeissLaw is investigating whether CACB's Board acted to maximize shareholder value prior to entering into the agreement. Notably, the Company recently announced positive financial results, reporting double-digit revenue and loan growth for the third quarter of 2016. Additionally, it reported net interest income of $23.8 million, gross loans of $2.1 billion, and total deposits of $2.7 billion, up $1.6 million, $158.7 million, and 185.1 million, respectively, from the previous period. Shareholder's equity also increased to $367 million. Moreover, in a conference call following the acquisition announcement, FIBK's Chief Financial Officer estimated the transaction would "increase earnings per share by 10% per year." Finally, upon completion of the transaction, CACB shareholders will own a mere 20% the newly combined company.