Cascade Bancorp (Oregon) Announces Financial Results for the Third Quarter of 2009

Cascade Bancorp (Oregon) Announces Financial Results for the Third Quarter of
2009
-- Third Quarter Net Loss Per Share: of ($0.45) or ($12.6 million) mainly due
to $22 million provision for loan losses compared to net income per share of
$0.01 or $0.3 million a year-ago.

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BEND, Ore., Oct. 29 /PRNewswire-FirstCall/ -- Cascade Bancorp ("Cascade")
(Nasdaq: CACB) reported a third quarter 2009 net loss of ($12.6 million) or
($0.45) per share compared to net income of $0.3 million or $0.01 per share
for the year-ago quarter primarily due to elevated loan loss provision
expense, decreased net interest income, and an increase in noninterest expense
due to Other Real Estate Owned (OREO) valuation charges.

Patricia L. Moss, CEO, stated "Our Company continues to work through and
respond to economic and industry pressures. Our third quarter 2009 loss was
driven by higher loan loss provision expense and OREO valuation charges, which
reflects continued deterioration of appraised property values underlying
certain loans hard hit by this economic cycle. We remain appreciative of the
loyalty of our customers and community and our proven ability to safeguard
their deposits has resulted in a stabilization of customer deposits. We remain
focused on the successful execution of our strategic initiatives and are
encouraged by the progress in place."

Consistent with management strategic actions to lower outstanding loans, at
September 30, 2009, Cascade's loan portfolio declined to approximately $1.7
billion, down $374.0 million and $127.0 million compared to a year-ago and on
a linked-quarter basis, respectively. Total deposits at September 30, 2009,
were $1.8 billion, up 4.8% compared to the year-ago quarter mainly as a result
of increased customer time deposits, as well as from internet and brokered
sources. As to credit quality, the third quarter 2009 provision for loan
losses totaled $22.0 million (pre-tax) with net loan charge-offs of $31.3
million (pre-tax) primarily due to declining real estate appraised values
backing collateral dependent loans. As compared to the prior year the Bank has
increased its level of pooled and unallocated reserves in response to the
challenging economic environment. NPA's showed signs of stabilization at
$197.3 million down from $204.1 million for the linked-quarter while
delinquent loans improved to 0.28% of the loan portfolio from 0.52% for the
linked-quarter.

Net interest income decreased to $17.3 million for the third quarter of 2009
primarily due to reduced interest and loan fee income related to the decline
in loan volumes and interest reversed and foregone on NPA's. Non-interest
income for the third quarter of 2009 increased $2.6 million from the year-ago
level primarily due to a one-time gain recorded on the sale of the Bank's
credit card merchant business of $3.2 million. Non-interest expense for the
third quarter of 2009 increased $12.0 million from the year-ago level
primarily due to OREO valuation adjustments of approximately $9.0 million and
FDIC insurance of $1.3 million for the quarter.

The net interest margin (NIM) was 3.13% for the third quarter of 2009 compared
to 3.52% for the linked-quarter and 4.42% in the year-ago quarter. The lower
NIM was primarily due to increases in interest bearing balances held with the
Federal Reserve Bank reducing the margin by approximately 32 basis points
compared to the linked-quarter. In addition, NIM was affected by
approximately 7 basis points due to interest reversals and lost interest
income related to NPA's.

At September 30, 2009, the Company's Tier 1 leverage, Tier 1 risk-based
capital and total risk-based capital ratios were 4.22%, 5.38% and 8.61%,
respectively, meeting the regulatory benchmarks for "adequately capitalized."
These ratios include a reduction of 80 basis points in the Tier 1 leverage
ratio and 102 basis points in the Tier 1 risk-based and total risked-based
capital ratios related to a disallowance of $18.7 million or approximately 54%
of the Company's deferred tax assets based upon a regulatory accounting
calculation standard that is not directly applicable under generally accepted
accounting principles. Regulatory benchmarks for an "adequately-capitalized"
designation are 4%, 4% and 8% for Tier 1 leverage, Tier 1 risk-based capital
and total risk-based capital, respectively; "well capitalized" benchmarks are
5%, 6% and 10%, for Tier 1 leverage, Tier 1 risk-based capital and total
risked-based capital, respectively. However, pursuant to the regulatory order
entered into with the Federal Deposit Insurance Corporation, the Bank is
required to maintain a Tier 1 leverage ratio of at least 10% in order to be
considered "well-capitalized."

Cascade's SEC filing of Form 10-Q for the third quarter of 2009 includes
substantial detail and discussion as to the financial results and condition of
Cascade as of and for the quarter ended September 30, 2009 and the reader is
encouraged to review this filing by going to the investor relations tab at
http://www.botc.com or request a copy from Debbie Bleile at DebbieB@botc.com,
(541) 617 - 3513 or by mail at P.O. Box 369, Bend, Oregon 97709.

About Cascade Bancorp and Bank of the Cascades

Cascade Bancorp (NASDAQ: CACB), headquartered in Bend, Oregon and its
wholly-owned subsidiary, Bank of the Cascades, operates in Oregon and Idaho
markets. Founded in 1977, Bank of the Cascades offers full-service community
banking through 32 branches in Central Oregon, Southern Oregon, Portland/Salem
and Boise/Treasure Valley. The Bank has a business strategy that focuses on
delivering the best in community banking for the financial well-being of
customers and shareholders. It executes its strategy through the consistent
delivery of full relationship banking focused on attracting and retaining
value driven customers. In December 2008, Bank of the Cascades was named by
the Portland Business Journal as one of Oregon's Most Admired Companies in the
Financial Services category, as chosen by Oregon CEOs. For further
information, please visit our web site at http://www.botc.com.

FORWARD LOOKING STATEMENTS
This release contains forward-looking statements about Cascade Bancorp's plans
and anticipated results of operations and financial condition. These
statements include, but are not limited to, our plans, objectives,
expectations and intentions and are not statements of historical fact. When
used in this report, the word "expects," "believes," "anticipates," "could,"
"may," "will," "should," "plan," "predicts," "projections," "continue" and
other similar expressions constitute forwardlooking 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. Certain
risks and uncertainties and the Company's success in managing such risks and
uncertainties cause actual results to differ materially from those projected,
including among others, the risk factors described in our quarterly report on
Form 10-Q filed with the Securities and Exchange Commission (the "SEC") for
the quarter ended September 30, 2009 as well as the following factors: our
inability to comply in a timely manner with the cease and desist order with
the Federal Deposit Insurance Corporation ("FDIC") and the Oregon Division of
Finance and Corporate Securities ("DFCS"), under which we are currently
operating, could lead to further regulatory sanctions or orders, which could
further restrict our operations and negatively affect our results of
operations and financial condition; local and national economic conditions
could be less favorable than expected or could have a more direct and
pronounced effect on us than expected and adversely affect our results of
operations and financial condition; the local housing/real estate market could
continue to decline for a longer period than we anticipate; the risks
presented by a continued economic recession, which could continue to adversely
affect credit quality, collateral values, including real estate collateral and
OREO properties, investment values, liquidity and loan originations, reserves
for loan losses and charge offs of loans and loan portfolio delinquency rates
and may be exacerbated by our concentration of operations in the States of
Oregon and Idaho generally, and the Oregon communities of Central Oregon,
Northwest Oregon, Southern Oregon and the greater Boise area, specifically; we
may be compelled to seek additional capital in the future to augment capital
levels or ratios or improve liquidity, but capital or liquidity may not be
available when needed or on acceptable terms; interest rate changes could
significantly reduce net interest income and negatively affect funding
sources; competition among financial institutions could increase
significantly; competition or changes in interest rates could negatively
affect net interest margin, as could other factors listed from time to time in
the Company's SEC reports; the reputation of the financial services industry
could further deteriorate, which could adversely affect our ability to access
markets for funding and to acquire and retain customers; and current
regulatory requirements, changes in regulatory requirements and legislation
and our inability to meet those requirements, including capital requirements
and increases in our deposit insurance premium, could adversely affect the
businesses in which we are engaged, our results of operations and financial
condition.

These forward-looking statements speak only as of the date of this release.
The Company undertakes no obligation to publish revised forwardlooking
statements to reflect the occurrence of unanticipated events or circumstances
after the date hereof. Readers should carefully review all disclosures filed
by the Company from time to time with theSEC.

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