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Bank of the Cascades Reports Continued Profitability


Cascade Bancorp Announces Net Income of $1.8 Million for quarter ended September 30, 2012 and related filing of SEC Form 10-Q

BEND, Ore., Nov. 15, 2012 /PRNewswire/ -- Cascade Bancorp (NASDAQ: CACB). On November 14, 2012, Cascade Bancorp filed its September 30, 2012 quarterly report on Form 10-Q with the Securities and Exchange Commission. For the third quarter of 2012 Cascade Bancorp recorded net income of $1.8 million. The Company reported comparable earnings for the quarter ended June 30, 2012.  

Total gross loan balances outstanding at September 30, 2012 were $862.7 million as compared to $845.5 million at June 30, 2012.  The increase is a result of targeted portfolio growth in commercial lending as well as higher origination production from the Bank's consumer and mortgage channels. Total deposits at September 30, 2012 were $1.07 billion as compared to $1.05 billion at June 30, 2012.  The increase in deposits reflects seasonal deposit flows for the Company's customers. The net interest margin for the September 30, 2012 quarter was a solid 4.07%.  Credit quality trends continued to improve with non-performing assets at 1.51% of total assets as compared to the prior quarter level of 1.70%.  The annualized rate of net charge-offs to loans for the third quarter was 1.21% as compared to the prior quarter of 2.70%. The reserve for loan losses as of September 30, 2012 was $35.6 million or 4.13% of gross loans.  A portion of the Company's charge offs as well as its lower reserve levels relate to the Company's proactive efforts to remediate loans classified as substandard in its portfolio.  

Terry Zink, President and CEO of Cascade Bancorp commented, "We are pleased with the results for the third quarter including the stability of year-to-date earnings.  The results suggest that our focus on putting local deposits to work by making loans to our local business, mortgage, and consumer customers is building toward sustainable growth and positive earnings trends for the future.  Importantly, our improving credit quality may be a positive indicator of improving economic health of the communities we serve." 

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, operate 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. For further information, please visit our website at


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 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. Certain risks and uncertainties and Cascade Bancorp's success in managing such risks and uncertainties could cause actual results to differ materially from those projected, including among others, the risk factors described in our annual report on Form 10-K filed with the Securities and Exchange Commission (the "SEC") for the year ended December 31, 2011, as well as the following factors: we continue to operate under the regulatory order with the Federal Deposit Insurance Corporation ("FDIC") and the Oregon Division of Finance and Corporate Securities ("DFCS"), and the written agreement entered into with the Federal Reserve Bank and DFCS, which restricts our ability to take certain actions; 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 Central Oregon, Southern and Northwest Oregon, and the greater Boise/Treasure Valley, Idaho area, specifically; 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 Cascade Bancorp'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 existing 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. Cascade Bancorp undertakes no obligation to publish revised forward-looking statements to reflect the occurrence of unanticipated events or circumstances after the date hereof. Readers should carefully review all disclosures filed by Cascade Bancorp from time to time with the SEC.

SOURCE Cascade Bancorp

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