The new bank will be called "Bank of the Cascades" and CEO and President Terry Zink will be at the helm of the new, bigger bank.
He says it's been an amzing couple of years for the bank.
"We're a little bit like a phoenix raising from the ashes. We were counted out. But we're stable now and able to grow. And I'm absolutely convinved that community banking is an essential part of smaller communities."
The Board of Directors of both banks have approved the merger and regulators are expected to approve it in early 2014.
This merger will allow Bank of the Cascades to expand to the Eugene market.
With this acqusition, Bank of the Cascades will have a 27 market share in central Oregon.