The acquisition includes 12 Oregon branch locations and three Washington branch locations, as well as $707m of branch deposits.
As per the agreed terms, Cascades will retain current employees working at the branches being bought.
The deal will strengthen Cascade’s core deposit and customer relationship base in the Southern and Coastal counties of Oregon.
Subject to regulatory approval and the satisfaction of customary closing conditions, the acquisition is expected to be completed in the first quarter of 2016.
This deal is in line with Cascade’s strategy to have $5bn worth of assets through both organic loan growth and bank acquisitions in the Northwest.
Cascade president and CEO Terry Zink said: "We believe our new customers will be very pleased with our personalized approach to banking, including convenient branch locations and best-in-class banking services, such as service-charge-free nationwide ATM access, and 24/7 online and mobile banking for businesses and consumers.
"Importantly, we believe our new employees will be pleased with Cascade’s commitment to our people and our communities, as well as support of volunteer efforts in tandem with donations to local not-for-profit organizations."
The financial terms of the acquisition are not disclosed.
Bank of the Cascades currently offers full-service community banking through 37 branches in Central, Southern and Northwest Oregon, as well as in the greater Boise/Treasure Valley, Idaho area.
