Cascade Bancorp (Oregon) Announces Third Quarter 2008 Positive Net Income of $0.6...

Cascade Bancorp (Oregon) Announces Third Quarter 2008 Positive Net Income of
$0.6 Million or $0.02 Earnings Per Share While Increasing Reserve for Credit
Losses to Nearly $45 Million or 2.18% of Loans; Q3 Non-Performing Assets
Slightly Below Prior Quarter
- Credit Quality: Reserve for credit losses increased to $44.8 million or a
strong 2.18% of total loans.

BEND, Ore., Oct. 23 /PRNewswire-FirstCall/ -- Cascade Bancorp ("Cascade")
(Nasdaq: CACB) reported third quarter 2008 Diluted Earnings Per Share
(EPS-diluted) at $0.02 per share compared to $0.35 for the year-ago quarter
and $0.01 for the linked-quarter. The Company reported continued positive Net
Income for the third quarter 2008 of $0.6 million versus $10.0 million a
year-ago and up from $0.2 million for the linked-quarter. Year-to-date net
income is $6.8 million or $0.24 per share.
"We are pleased to report ongoing positive earnings for the third quarter
and year-to-date. In response to challenging economic times most of this
quarter's earnings were offset by increased reserves for credit losses," said
Patricia L. Moss, CEO. "We are encouraged that, apart from the known issues
in our residential land development portfolio, credit quality metrics in other
loan categories were stable during the quarter. We believe our proactive and
consistent efforts to monitor, recognize, and remediate loan issues
contributed to our overall credit quality." She concluded, "Our financial
strength, 'well-capitalized' status, substantial reserves and strong cash flow
generation provide the resources necessary to meet the challenges of today and
supports our customers' confidence in Bank of the Cascades."
Management believes Cascade's credit quality issues continue to be largely
confined within the residential development portfolio, which represents
approximately 13% of total loans. Accordingly, third quarter 2008 includes a
$15.0 million (pre-tax) provision for credit losses and net loan charge-offs
of $8.2 million (pre-tax) mainly related to the residential development
portfolio. As a result of the heightened provision, the Reserve for Credit
Losses increased to nearly $45 million or a solid 2.18% of total loans, up
from 1.94% and 1.37% for the linked-quarter and year-ago period, respectively.
In addition to its strong reserves, the Company has $163.3 million in tangible
capital and is designated a "well-capitalized" bank according to regulatory
guidelines with estimated total risk-based capital at 11.47% as of
September 30, 2008, exceeding the 10% benchmark by a tax-effected margin of
approximately $53.3 million. Further, Cascade's pre-tax, pre-provision
earnings are in the top 15% of banks in the nation its size.
LOAN PORTFOLIO AND CREDIT QUALITY:
At September 30, 2008, Cascade's Loan Portfolio was $2.05 billion,
essentially flat as compared to a year-ago and on a linked-quarter basis.
Management believes that overall loan growth will likely remain muted until
such time as the economic downturn runs its course. We continue to assist
consumer and business relationship customers with their credit needs. Because
of the nature of its markets, real estate has historically represented a
significant portion of the Company's overall loan portfolio and is frequently
a material component of collateral for the Company's loans.
At September 30, 2008, loans delinquent >30 days were steady at 0.21% of
total loans compared to 0.19% for the linked-quarter and 0.46% at year-end
2007. This compares favorably to peer banks whose average delinquency rates
were 0.89% at prior quarter end. Delinquency rates in commercial real estate
(CRE) and commercial (C&I) portfolios were 0.03% and 0.08% respectively,
indicating continued stable credit quality at this time.
NPAs (including non-performing loans and certain other real estate owned
(OREO)) were modestly lower at $109.1 million, or 4.5% of total assets
compared to $127.1 million or 5.2% of total assets for the linked-quarter.
NPAs are primarily related to the Company's residential land acquisition and
development loan portfolio. The decrease in NPAs primarily resulted largely
from reclassification of a previously reported non-performing OREO as
mentioned below. See accompanying table for distribution of loans and NPAs by
region.
OREO was $37.2 million at September 30, 2008 compared to $33.9 million in
the prior quarter. During the quarter the Company sold 10 OREO lots, while
approximately $5.5 million in assets were added to OREO at estimated fair
value, primarily in residential land development assets. Note that beginning
with the third quarter approximately $16.2 million of OREO balance is not
classified as non-performing because it was determined that the commercial
building revenues being received on a particular OREO property exceeded the
interest income previously received on the underlying loan. Apart from this
adjustment, NPAs were slightly lower as compared to the prior quarter.
The Company carries NPAs at the estimated net realizable fair value;
however, because of the uncertain real estate market, no assurance can be
given that the ultimate disposition of such assets will be at or above such
value. The orderly resolution of non-performing loans as well as expedient
disposition of OREO properties is a priority for management.
Management believes the reserve for credit losses is at an appropriate
level based on frequently updated evaluation and analysis of portfolio credit
quality in conjunction with prevailing economic conditions. With uncertainty
as to the depth and duration of the real estate slowdown and its economic
effect on the communities within Cascades' banking markets, forward assurances
cannot be given that the reserve will be adequate in future periods or that
the level of NPAs will subside. Further provisioning and charge-offs may be
required before values stabilize.
DEPOSITS:
Customer Relationship Deposits(1) continued to ease during the third
quarter reflecting the slowing economy. Such deposits totaled $1.4 billion at
September 30, 2008, down 12.6% compared to a year-ago and down 3.1% on a
linked-quarter basis. Total Deposits were $1.8 billion at September 30, 2008,
down 1.9% compared to a year-ago but up 10.8% on a linked-quarter basis as the
bank accessed the brokered time deposit market to augment aggregate deposits.
Note that Cascade's proportion of time deposits to total deposits continues to
remain well below its peer banks because of its focus on relationship
deposits.
NET INTEREST MARGIN & INTEREST RATE RISK:
Third quarter 2008 Net Interest Margin (NIM) was 4.42% compared to 4.52%
for the linked-quarter, and 5.24% for the year-ago quarter. While the overall
cost of funds remained unchanged at 1.90% from the prior quarter, the lower
NIM was primarily due to interest reversed and foregone on non-performing
loans and lower loan fees.
Yields on earning assets during the third quarter of 2008 were 6.28%
compared to 6.38% in the linked-quarter and down from 8.29% in the year-ago
quarter. The year-over-year and linked-quarter decline in yields were mainly
a result of declining market rates as well as the effect of interest forgone
and reversed on non-performing loans. The average rate paid on interest
bearing liabilities was relatively flat at 2.35% for the current quarter as
compared to 2.37% for the linked-quarter and is below the 4.11% for the year
ago quarter due to declining rate environment.
Because one of Cascade's strengths is its relatively high proportion of
non-interest bearing deposits, lower market interest rates may modestly
compress the Company's NIM as yields decline against an already low cost of
funds. Importantly, this effect should also reverse once the economy
rebounds. See cautionary "Forward Looking Statements" below and in Cascade's
Form 10-K report for further information on risk factors including interest
rate risk.
NON-INTEREST INCOME AND EXPENSE:
Non-Interest Income for the third quarter of 2008 was $5.5 million
compared to the year-ago quarter of $5.2 million and $5.0 million for the
linked-quarter. The increase was mainly a result of a $0.4 million in gain on
the sales of investment securities. Note that other income includes
approximately $0.3 million in realized revenue primarily on the performing
OREO property discussed above. Bank service and other fee income categories
were generally flat.
As a result of tightening credit conditions and related home-buyer
caution, residential mortgage originations were down 41.3% to $21.3 million
for the current quarter compared to $36.3 million in the linked-quarter and
down 45.1% from the year-ago period. Lower originations caused net mortgage
related revenues to decline $0.3 million in the third quarter of 2008 when
compared to the both linked-quarter and year-ago periods. Note that the
Company has focused on originating conventional mortgage products throughout
its history while purposefully avoiding sub-prime / option-ARM type products.
As a result, the delinquency rate within Cascade's $510 million portfolio of
serviced residential mortgage loans is only 0.55%, notably below the national
mortgage delinquency rate of 6.41% at September 30, 2008. The fair value of
servicing portfolio is estimated to exceed book value by amounts ranging from
$1.2 million to $2.3 million.
Non-Interest Expense decreased compared to prior periods primarily due to
a $2.1 million reduction in the reserve for unfunded commitments as a result
of declining outstanding commitments and lower estimated reserve rates.
Excluding this factor, normalized non interest expense levels for the third
quarter were down 5.1% compared to the linked-quarter and up 3.9% from the
year-ago period. When compared to the year-ago quarter, adjusted expenses
were higher due to OREO and related costs which totaled approximately
$0.5 million for the quarter. Management anticipates that aside from the
possible volatility of OREO related costs, normalized non interest expense
levels should be flat to down slightly during the next quarter.
Cascade is currently evaluating the federal government's Troubled Asset
Relief Program created pursuant to the recently enacted Emergency Economic
Stabilization Act, which includes legislation concerning access to capital,
problem asset resolution and other items.
BUSINESS STRATEGY:
Operating in some of the fastest growing markets in the nation, Cascade
Bancorp (headquartered in Bend, Oregon) and its wholly-owned subsidiary, Bank
of the Cascades, operates in Oregon and Idaho markets. In terms of banking
growth markets, Cascade ranks as the top community bank footprint in the
Northwest. Cascade has a business strategy that focuses on delivering the
best in community banking for the financial well-being of customers and
shareholders. The Bank implements its strategy by combining outstanding
service, competitive financial products, local expertise and advanced
technology applied for the convenience of customers. Founded in 1977, Bank of
the Cascades offers full-service community banking through 33 branches in
Central Oregon, Southern Oregon, Portland/Salem and Boise/Treasure Valley.
The Bank has been repeatedly named among the top performing banks in the
nation by industry publications. The Bank is honored to be among the top
Oregon "Best 100 Companies to Work For", as compiled by Oregon Business
Magazine. For further information on Bank of the Cascades, please visit our
web site at http://www.botc.com.
FORWARD LOOKING STATEMENTS
This release contains forward-looking statements that are subject to risks
and uncertainties that could cause actual results to differ materially from
those expressed or implied by such forward-looking statements. Such risks and
uncertainties may include but are not necessarily limited to general and local
economic conditions, including the residential and commercial real estate
markets; changes in interest rates, including timing or relative degree of
change; inflation; credit quality and concentrations; competition within the
business areas in which Cascade is conducting its operations; changes in
regulatory conditions or requirements or new legislation; and changes in
accounting policies. These statements include, among others, statements
related to future profitability levels and future earnings. For a discussion
of factors, which could cause results to differ, please see Cascade's reports
on Forms 10-K and 10-Q as filed with the Securities and Exchange Commission
and Cascade's press releases. When used in this release, the words or phrases
such as "will likely result in", "management expects that", "will continue",
"is anticipated", "estimate", "projected", or similar expressions constitute
forward-looking statements, as do any other statements that expressly or
implicitly predict future events, results or performance, and such statements
are made pursuant to the safe harbor provisions of the Private Securities
Litigation Reform Act of 1995. Readers should not place undue reliance on the
forward-looking statements, which reflect management's view only as of the
date hereof. Cascade undertakes no obligation to publicly revise these
forward-looking statements to reflect subsequent events or circumstances.
(1) Customer relationship deposits include core deposit transaction
accounts such as checking, money market and savings, while excluding
all wholesale or brokered deposits and time deposits greater than
$100,000.

CASCADE BANCORP
Selected Consolidated Financial Highlights
(In thousands, except per share data and ratios; unaudited)

Year over Year Linked Quarter
3rd Qtr 3rd Qtr % 3rd Qtr 2nd Qtr %
Balance Sheet Data 2008 2007 Change 2008 2008 Change
(at period end)
Investment
securities $84,647 $97,857 -13.5% $84,647 $90,492 -6.5%
Loans, gross 2,049,695 2,041,573 0.4% 2,049,695 2,066,091 -0.8%
Total assets 2,410,535 2,403,717 0.3% 2,410,535 2,443,888 -1.4%
Total deposits 1,757,883 1,792,301 -1.9% 1,757,883 1,586,666 10.8%
Non-interest
bearing
deposits 446,470 471,140 -5.2% 446,470 417,076 7.0%
Customer
relationship
deposits (1) 1,409,819 1,612,950 -12.6% 1,409,819 1,454,865 -3.1%
Total
shareholders'
equity (book) 276,706 284,737 -2.8% 276,706 276,033 0.2%
Total
shareholders'
equity
(tangible) 163,343 169,793 -3.8% 163,343 162,275 0.7%
Income Statement
Data
Interest income $34,111 $43,956 -22.4% $34,111 $34,260 -0.4%
Interest expense 10,146 16,232 -37.5% 10,146 10,014 1.3%
Net interest income 23,965 27,724 -13.6% 23,965 24,246 -1.2%
Loan loss provision 15,024 1,750 758.5% 15,024 12,600 19.2%
Net interest income
after loan loss
provision 8,941 25,974 -65.6% 8,941 11,646 -23.2%
Noninterest income 5,530 5,198 6.4% 5,530 5,008 10.4%
Noninterest expense 13,809 15,319 -9.9% 13,809 16,763 -17.6%
Income (loss) before
income taxes 662 15,853 -95.8% 662 (109)-707.3%
Provision (credit)
for income taxes 88 5,835 -98.5% 88 (290) 130.3%
Net income $574 $10,018 -94.3% $574 $181 217.1%
Share Data
Basic earnings per
common share $0.02 $0.35 -94.2% $0.02 $0.01 217.0%
Diluted earnings per
common share $0.02 $0.35 -94.1% $0.02 $0.01 217.0%
Book value per
common share $9.85 $10.06 -2.1% $9.85 $9.83 0.2%
Tangible book value
per common share $5.82 $6.00 -3.1% $5.82 $5.78 0.6%
Cash dividends paid
per common share $0.01 $0.09 -88.9% $0.01 $0.10 -90.0%
Ratio of dividends
declared to net
income 48.67% 25.46% 91.2% 48.67% 1543.04% -96.8%
Basic Average shares
outstanding 27,947 28,340 -1.4% 27,947 27,929 0.1%
Fully Diluted average
shares outstanding 28,078 28,673 -2.1% 28,078 28,061 0.1%
Key Ratios
Return on average
total shareholders'
equity (book) 0.80% 14.25% -94.4% 0.80% 0.26% 207.7%
Return on average
total shareholders'
equity (tangible)(2) 1.34% 24.26% -94.5% 1.34% 0.43% 211.6%
Return on average
total assets 0.09% 1.69% -94.7% 0.09% 0.03% 200.0%
Pre-tax pre provision
return on average
total assets 2.57% 2.97% -13.4% 2.57% 2.08% 23.5%
Net interest spread 3.91% 4.18% -6.5% 3.91% 4.02% -2.7%
Net interest margin 4.42% 5.24% -15.6% 4.42% 4.52% -2.2%
Total revenue (net
int inc + non int
inc) $29,495 $32,922 -10.4% $29,495 $29,254 0.8%
Efficiency ratio(3) 53.94% 46.53% 15.9% 53.94% 57.30% -5.9%
Credit Quality Ratios
Reserve for credit
losses 44,760 27,955 60.1% 44,760 40,036 11.8%
Reserve to ending
total loans 2.18% 1.37% 59.5% 2.18% 1.94% 12.7%
Non-performing
assets (4) 109,072 21,474 407.9% 109,072 127,105 -14.2%
Non-performing
assets to total
assets 4.52% 0.89% 406.5% 4.52% 5.20% -13.0%
Delinquent >30 days
to total loans 0.21% 0.09% 146.4% 0.21% 0.19% 12.0%
Net charge-offs 8,176 1,554 426.1% 8,176 9,927 -17.6%
Net loan charge-offs
(annualized) 1.58% 0.31% 408.2% 1.58% 1.93% -18.0%
Mortgage Activity
Mortgage
Originations $21,308 $38,810 -45.1% $21,308 $36,296 -41.3%
Total Servicing
Portfolio
(sold loans) $509,513 $493,638 3.2% $509,513 $510,727 -0.2%
Capitalized
Mortgage
Servicing Rights
(MSRs) $3,679 $3,841 -4.2% $3,679 $3,810 -3.4%
Capital Ratios
Average
shareholders'
equity to average
assets 11.65% 11.85% -1.7% 11.65% 11.69% -0.3%
Leverage ratio (5)
(Est Q3-08) 9.91% 10.52% -5.8% 9.91% 9.93% -0.2%
Total risk-based
capital ratio (5)
(Est Q3-08) 11.47% 11.58% -0.9% 11.47% 11.24% 2.0%

Notes:
(1) Customer relationship deposits include core deposit transaction
accounts such as checking, money market and savings, while excluding
all wholesale or brokered deposits and time deposits greater than
$100,000.
(2) Excludes goodwill, core deposit intangible and other identifiable
intangible assets, related to the acquisitions of Community Bank of
Grants Pass and F&M Holding Company.
(3) Efficiency ratio is noninterest expense (adj for one-time adjs)
divided by (net interest income + noninterest income).
(4) Non-performing assets consist of loans contractually past due 90 days
or more, nonaccrual loans and other real estate owned.
(5) Computed in accordance with FRB and FDIC guidelines.
Total Shares Outstanding as of 9/30/08: 28,087,198

CASCADE BANCORP (CACB)
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(in thousands, except per share amounts)
(unaudited)
Year over Year Quarter Linked Quarter
3rd Qtr 3rd Qtr % 2nd Qtr %
2008 2007 Change 2008 Change
Interest income:
Interest and fees on
loans $32,938 $42,547 -22.6% $33,079 -0.4%
Taxable interest on
investments 1,093 1,290 -15.3% 1,068 2.3%
Nontaxable interest on
investments 40 66 -39.4% 53 -24.5%
Interest on federal
funds sold (6) 41 -114.6% 10 -160.0%
Interest on interest
bearing balances from
FHLB 45 1 4400.0% 1 4400.0%
Dividends on Federal
Home Loan Bank stock 1 11 -90.9% 49 -98.0%
Total interest
income 34,111 43,956 -22.4% 34,260 -0.4%

Interest expense:
Deposits:
Interest bearing
demand 3,396 8,388 -59.5% 3,934 -13.7%
Savings 36 49 -26.5% 35 2.9%
Time 3,045 4,369 -30.3% 2,469 23.3%
Junior subordinated
debentures and other
borrowings 3,669 3,426 7.1% 3,576 2.6%
Total interest
expense 10,146 16,232 -37.5% 10,014 1.3%

Net interest income 23,965 27,724 -13.6% 24,246 -1.2%
Loan loss provision 15,024 1,750 758.5% 12,600 19.2%
Net interest income after
loan loss provision 8,941 25,974 -65.6% 11,646 -23.2%

Noninterest income:
Service charges on
deposit accounts 2,552 2,597 -1.7% 2,537 0.6%
Mortgage loan
origination and
processing fees 279 423 -34.0% 406 -31.3%
Gains on sales of
mortgage loans, net 53 183 -71.0% 194 -72.7%
Gains on sales of
investment securities
AFS 436 260 67.7% - 100.0%
Gains on sales of other
real estate owned 62 - 100.0% - 100.0%
Card issuer and merchant
services fees, net 982 1,038 -5.4% 1,005 -2.3%
Earnings on bank-owned
life insurance 211 140 50.7% 287 -26.5%
Other income 955 557 71.5% 579 64.9%
Total noninterest
income 5,530 5,198 6.4% 5,008 10.4%

Noninterest expense:
Salaries and employee
benefits 8,959 8,925 0.4% 9,093 -1.5%
Occupancy & equipment 1,695 1,725 -1.7% 1,713 -1.1%
Communications 545 491 11.0% 491 11.0%
Advertising 333 330 0.9% 348 -4.3%
Legal 169 206 -18.0% 307 -45.0%
OREO & collection
expenses 494 8 6075.0% 1,186 -58.3%
Other expenses 1,614 3,634 -55.6% 3,625 -55.5%
Total noninterest
expense 13,809 15,319 -9.9% 16,763 -17.6%
Income (loss) before income
taxes 662 15,853 -95.8% (109) -706.9%
Provision (credit) for
income taxes 88 5,835 -98.5% (290) 130.3%
Net income $574 $10,018 -94.3% $181 216.9%

Basic net income per common
share $0.02 $0.35 -94.2% $0.01 215.4%

Diluted net income per
common share $0.02 $0.35 -94.2% $0.01 218.8%

Year over Year YTD
Nine months ended
September 30, %
2008 2007 Change
Interest income:
Interest and fees on loans $103,015 $124,115 -17.0%
Taxable interest on investments 3,212 3,945 -18.6%
Nontaxable interest on investments 154 222 -30.6%
Interest on federal funds sold 17 149 -88.6%
Interest on interest bearing
balances from FHLB 3 193 -98.4%
Dividends on Federal Home Loan
Bank stock 111 28 296.4%
Total interest income 106,512 128,652 -17.2%

Interest expense:
Deposits:
Interest bearing demand 13,050 22,602 -42.3%
Savings 110 157 -29.9%
Time 8,628 12,340 -30.1%
Junior subordinated debentures and
other borrowings 11,453 11,739 -2.4%
Total interest expense 33,241 46,838 -29.0%

Net interest income 73,271 81,814 -10.4%
Loan loss provision 32,124 3,800 745.4%
Net interest income after loan loss
provision 41,147 78,014 -47.3%

Noninterest income:
Service charges on deposit
accounts 7,490 7,295 2.7%
Mortgage loan origination and
processing fees 1,138 1,363 -16.5%
Gains on sales of mortgage loans,
net 483 681 -29.1%
Gains on sales of investment
securities AFS 436 260 67.7%
Gains on sales of other real
estate owned 35 - 100.0%
Card issuer and merchant services
fees, net 2,879 2,988 -3.6%
Earnings on bank-owned life
insurance 763 983 -22.4%
Other income 2,816 2,448 15.0%
Total noninterest income 16,040 16,018 0.1%

Noninterest expense:
Salaries and employee benefits 27,211 27,261 -0.2%
Occupancy & equipment 5,233 4,952 5.7%
Communications 1,592 1,512 5.3%
Advertising 1,006 960 4.8%
Legal 826 415 99.0%
OREO & collection expenses 2,452 29 8355.2%
Other expenses 9,627 11,540 -16.6%
Total noninterest expense 47,947 46,669 2.7%
Income (loss) before income taxes 9,240 47,363 -80.5%
Provision (credit) for income taxes 2,445 17,643 -86.1%
Net income $6,795 $29,720 -77.1%

Basic net income per common share $0.24 $1.05 -76.8%

Diluted net income per common share $0.24 $1.04 -76.6%

CASCADE BANCORP (CACB)
CONDENSED CONSOLIDATED BALANCE SHEETS
(Dollars in thousands)
(unaudited) Year over Year Linked Quarter
3rd Qtr 3rd Qtr % 2nd Qtr %
2008 2007 Change 2008 Change
ASSETS
Cash and cash
equivalents:
Cash and due from
banks $50,616 $60,363 -16.1% $63,903 -20.8%
Interest bearing
balances due from
FHLB 64 72 -11.1% 39 64.1%
Federal funds sold 2,938 807 264.1% - 100.0%
Total cash and
cash
equivalents 53,618 61,242 -12.4% 63,942 -16.1%
Investment
securities
available-for-sale 82,436 94,675 -12.9% 88,279 -6.6%
Investment
securities held-to-
maturity 2,211 3,182 -30.5% 2,212 0.0%
Federal Home Loan
Bank stock 13,366 6,991 91.2% 12,087 10.6%
Loans, net 2,005,974 2,016,781 -0.5% 2,029,218 -1.1%
Premises and
equipment, net 36,382 38,878 -6.4% 36,312 0.2%
Goodwill 105,047 105,047 0.0% 105,047 0.0%
Core deposit
intangible 8,316 9,897 -16.0% 8,711 -4.5%
Bank-owned life
insurance 34,067 32,713 4.1% 33,857 0.6%
Other real estate
owned (OREO) 37,196 375 9818.9% 33,943 9.6%
Accrued interest and
other assets 31,922 33,936 -5.9% 30,280 5.4%
Total
assets $2,410,535 $2,403,717 0.3% $2,443,888 -1.4%

LIABILITIES &
STOCKHOLDERS'
EQUITY
Liabilities:
Deposits:
Demand $446,470 $471,140 -5.2% $417,076 7.0%
Interest bearing
demand 747,865 949,162 -21.2% 832,840 -10.2%
Savings 38,459 41,142 -6.5% 37,204 3.4%
Time deposits 525,090 330,857 58.7% 299,546 75.3%
Total
deposits 1,757,884 1,792,301 -1.9% 1,586,666 10.8%
Junior
subordinated
debentures 68,558 68,558 0.0% 68,558 0.0%
Federal funds
purchased - 15,035 100.0% 87,481 -100.0%
Other borrowings 279,029 200,799 39.0% 395,986 -29.5%
Customer
repurchase
agreements 11,925 16,581 -28.1% 11,864 0.5%
Accrued interest
and other
liabilities 16,433 25,706 -36.1% 17,300 -5.0%
Total
liabilities 2,133,829 2,118,980 0.7% 2,167,855 -1.6%

Stockholders'
equity:
Common stock, no
par value; 158,158 164,200 -3.7% 157,706 0.3%
Retained earnings 118,518 120,150 -1.4% 118,224 0.2%
Unrealized gains
on investment
securities
available-for-
sale, net of
deferred income
taxes 30 387 -92.2% 103 -70.9%
Total
stockholders'
equity 276,706 284,737 -2.8% 276,033 0.2%
Total
liabilities
and stockholders'
equity $2,410,535 $2,403,717 0.3% $2,443,888 -1.4%

CASCADE BANCORP (CACB)
Loan Portfolio & Reserve for Credit Losses
(Dollars in thousands)
(unaudited)
% of % of % of
gross gross gross
Loan Portfolio 9/30/2008 loans 6/30/2008 loans 12/31/2007 loans

Commercial $608,714 30% $616,121 30% $606,408 29%
Real Estate:
Construction/lot 595,938 29% 649,846 31% 686,829 33%
Mortgage 94,380 5% 89,540 4% 88,509 4%
Commercial 694,458 34% 660,202 32% 612,694 30%
Consumer 56,311 3% 50,382 2% 47,038 2%
Total loans 2,049,801 100% 2,066,091 100% 2,041,478 99%
Less reserve for
loan losses 43,721 36,873 33,875
Total loans, net $2,006,080 $2,029,218 $2,007,603

Three months ended
September 30,
2008 2007
Reserve for loan losses:
Balance at beginning of period $36,873 $24,597
Loan loss provision 15,024 1,750
Recoveries 269 288
Loans charged off (8,445) (1,843)
Balance at end of period $43,721 $24,792

Reserve for unfunded commitments:
Balance at beginning of period $3,163 $3,413
Provision (credit) for unfunded
commitments (2,124) (250)
Balance at end of period $1,039 $3,163

Reserve for credit losses:
Reserve for loan losses $43,721 $24,792
Reserve for unfunded commitments 1,039 3,163
Total reserve for credit losses $44,760 $27,955

CASCADE BANCORP (CACB)
Loan Breakdown by Region
(Dollars in thousands)
(unaudited)

Loan Breakdown by Region as of 9/30/08

% of % of % of
Central gross Northwest gross Southern gross
Loan portfolio Oregon loans Oregon loans Oregon loans

Commercial $192,600 27% $191,700 43% $53,800 21%
Construction/lot 191,186 26% 114,700 26% 66,400 26%
Mortgage 44,049 6% 9,175 2% 8,480 3%
Commercial 266,300 37% 127,400 28% 119,600 47%
Consumer 27,360 4% 6,325 1% 4,120 2%
Total Loans $721,495 100% $449,300 100% $252,400 100%

% of % of
gross gross
Loan portfolio Idaho loans Bank total loans

Commercial $167,400 27% $605,500 30%
Construction/lot 224,900 36% 597,186 29%
Mortgage 32,677 5% 94,380 5%
Commercial 176,700 28% 690,000 34%
Consumer 24,823 4% 62,629 3%
Total Loans $626,500 100% $2,049,695 100%

CASCADE BANCORP (CACB)
CONSTRUCTION/LOT BREAKDOWN BY REGION
(Dollars in thousands)
% of
Constr/
% of lot % of
cate- port- gross
9/30/2008 gory folio loans 12/31/2007

Residential Land Development:
Raw Land $96,354 35% 15% 5% $107,160
Land Development 159,842 58% 25% 8% 183,809
Speculative Lots 19,618 7% 3% 1% 20,916
$275,814 100% 42% 13% $311,885

Geographic distribution by
region:
Central Oregon $96,609 35% 15% 5% $107,150
Northwest Oregon 4,706 2% 1% 0% 5,328
Southern Oregon 24,785 9% 4% 1% 32,541
Total Oregon 126,101 46% 19% 6% 145,019
Idaho 149,713 54% 23% 7% 166,866
Grand total $275,814 100% 42% 13% $311,885

Residential Construction:
Pre sold $59,906 53% 9% 3% $64,714
Lots 18,023 16% 3% 1% 20,575
Speculative Construction 35,036 31% 5% 2% 58,048
$112,965 100% 17% 5% $143,337

Geographic distribution by
region:
Central Oregon $48,011 43% 7% 2% $52,785
Northwest Oregon 28,499 25% 4% 1% 31,652
Southern Oregon 8,137 7% 1% 0% 14,252
Total Oregon 84,647 75% 13% 4% 98,689
Idaho 28,318 25% 4% 1% 44,648
Grand total $112,965 100% 17% 5% $143,337

Commercial Construction:
Pre sold $30,102 14% 5% 1% $61,298
Lots 14,218 7% 2% 1% 17,525
Speculative 134,244 64% 21% 6% 125,271
Speculative Lots 29,844 14% 5% 1% 30,815
$208,407 100% 32% 10% $234,909

Geographic distribution by
region:
Central Oregon $46,665 22% 7% 2% $68,411
Northwest Oregon 81,479 39% 13% 4% 81,683
Southern Oregon 33,521 16% 5% 2% 39,235
Total Oregon 161,665 78% 25% 8% 189,329
Idaho 46,742 22% 7% 2% 45,580
Grand total $208,407 100% 32% 10% $234,909

CASCADE BANCORP (CACB)
Non-Performing Assets
(Dollars in thousands)
(unaudited)

Non-Performing Assets by Region as of 9/30/08
% of % of % of % of
Region 9/30/ total 6/30/ total 3/31/ total 12/31/ total
2008 NPAs 2008 NPAs 2008 NPAs 2007 NPAs

Central Oregon $ 33,495 31% $ 27,603 22% $ 5,560 6% $ 5,793 10%
Northwest Oregon 1,518 1% 17,513 14% 17,542 18% 1,615 3%
Southern Oregon 27,024 25% 26,190 21% 28,822 30% 22,876 41%
Total Oregon $ 62,037 57% $ 71,306 56% $ 51,924 54% $ 30,284 54%
Idaho 47,035 43% 55,799 44% 44,116 46% 25,397 46%
Grand total $ 109,072 100% $ 127,105 100% $ 96,040 100% $ 55,681 100%

Non-Performing Assets by Loan Type as of 9/30/08
% of
$ % Related
Millions NPAs Portfolio
Land Development 78,800 72.2% 28.6%
Res Construction 8,900 8.2% 7.9%
Commercial Construction 3,500 3.2% 1.7%
Commercial RE 12,700 11.6% 1.8%
C&I / Other 5,200 4.8% 0.7%
109,100 100.0% 5.3%

Delinquent Loans as % of Related Portfolio
% of
30-59 days >60 days Related
past due past due Portfolio

Land Development 0.25% 1.42% 1.67%
Res Construction 0.26% 0.00% 0.26%
Commercial Construction 0.00% 0.00% 0.00%
Commercial RE 0.05% 0.03% 0.08%
C&I 0.20% 0.07% 0.27%
Consumer 0.24% 0.03% 0.27%
Total loan portfolio 0.12% 0.09% 0.21%

CASCADE BANCORP (CACB)
ADDITIONAL FINANCIAL INFORMATION
(Dollars in thousands)
(unaudited)
Year over Year Linked Quarter
3rd Qtr 3rd Qtr % 2nd Qtr %
Three Months Ended: 2008 2007 Change 2008 Change

Average Assets $ 2,429,699 $ 2,354,256 3.2% $ 2,412,508 0.7%
Average Loans 2,067,568 1,997,010 3.5% 2,058,327 0.4%
Average Deposits 1,650,637 1,802,099 -8.4% 1,642,401 0.5%
Average Investment
Securities 87,148 101,244 -13.9% 87,844 -0.8%
Average Other
Earning Assets 14,808 10,507 40.9% 12,680 16.8%
Average Non Interest
Bearing Deposits 407,420 476,707 -14.5% 414,130 -1.6%
Average Customer
Relationship
Deposits 1,411,593 1,584,492 -10.9% 1,642,401 -14.1%
Average Earnings
Assets 2,169,524 2,108,761 2.9% 2,158,851 0.5%
Average Interest
Bearing Liabilities 1,715,196 1,567,474 9.4% 1,695,171 1.2%
Average Borrowings 471,979 242,082 95.0% 466,901 1.1%
Average Common
Equity (book) 283,143 278,995 1.5% 282,084 0.4%
Average Common
Equity (tangible) 169,544 163,816 3.5% 168,093 0.9%

Septem- Septem- Decem-
ber 30, ber 30, % ber 31, %
Balances as of: 2008 2007 Change 2007 Change

Mortgage loans held
for sale $ 2,002 $ 1,748 14.5% $ 4,306 -53.5%
Intangibles &
goodwill 113,363 114,944 -1.4% 114,549 -1.0%

Loans past due
>90 days, not on
non-accrual status 51 51 51 0.0%
Loans on non-accrual
status 88,017 21,046 318.2% 45,865 91.9%
Total non-performing
loans (NPLs) 88,068 21,097 317.4% 45,916 91.8%
OREO - non performing 21,004 376 5486.2% 9,765 115.1%
Total non-performing
assets $ 109,072 $ 21,473 407.9% $ 55,681 95.9%

Operating commercial
real estate OREO
property 16,195 - 100.0% - 100.0%
Total other real
estate owned 37,199 376 9793.4% 9,765 280.9%

Selected ratios:
NPLs to total gross
loans 4.30% 1.03% 315.8% 2.25% 91.0%
NPAs to total gross
loans and OREO 5.23% 1.05% 397.0% 2.71% 92.5%
NPAs to total assets 4.52% 0.89% 406.5% 2.33% 94.6%

Shares Outstanding
(actual) 28,087 28,298 -0.7% 28,034 0.2%

SOURCE Cascade Bancorp

Gregory D. Newton, EVP, Chief Financial Officer, +1-541-617-3526, or Patricia
L. Moss, President & Chief Executive Officer, +1-541-385-6205, both of Cascade
Bancorp