Cascade Bancorp (CACB)

[clokisticking]

PLEASE VOTE AGAINST THE MERGER ... Just look at the filing on April 25th ... CACB is doing really well on there own and would be skyrocketing if it wasn't for this merger ... previous to 2008 CACB had performed so well that it was trading around $300 per share and had issued multiple forward splits and paid great dividends ... If the merger is not approved ... IMHO ... CACB WILL RISE TO THEIR FORMER GLORY ... They are positioned in all of the highest growth markets in the Pacific Northwest ... PLEASE, PLEASE, PLEASE vote against the merger and join me in the best ride of your financial life

[clokisticking]

Vote AGAINST merger ... just look at today's activity because of the SEC S-4 filing yesterday ... FIBK is resetting to the $38.40 as noted in the merger proposal and CACB is resetting to $7.62 as noted in the merger proposal ... plus CACB shareholders will be hammered by capital gains because of the $1.91 per share cash out that FIBK has written into the merger proposal

[clokisticking]

Vote NO on merger ... Just look at CACB pre 2008 ... CACB IS NOW STRONGER AND MORE WELL ESTABLISHED THAN BEFORE ... CACB is currently and has been held back and dragged down by this merger proposal ... CACB IS SET TO PERFORM JUST LIKE PRE 2008 with the forward splits and big quarterly dividends ... the bad debt is just now gone off the books and the economy is ready for lift off which means loans, loans, loans for business and real estate and with interest rates going up it will make for a lot larger quarterly earnings ... CACB would be at least $10 by now if it wasn't for this anchor around it's neck ... CACB would easily double to $16 per share by the end of the year versus FIBK being able to double to over $75 per share ... the ones to benefit most from this merger are the executives ... which, By the way, 2 or more of them after receiving severance bonus will be employed by FIBK ... OF COURSE the board of directors strongly recommends that you vote in favor of the merger ... just look for yourself how other financial stocks like CACB have done and how CACB since the November merger announcement has exactly followed what FIBK has done because the merger proposal tied CACB to FIBK at the hip ... it's really tragic that CACB has been held down by this proposal

[Enterprising Investor]

First Interstate BancSystem, Inc. Expands into Growth Markets in the Northwest with Acquisition of Cascade Bancorp (11/17/16)

BILLINGS, Mont. & BEND, Ore.--(BUSINESS WIRE)--First Interstate BancSystem, Inc. (“First Interstate”) (NASDAQ: FIBK) and Cascade Bancorp (“Cascade”) (NASDAQ: CACB) today announced that they have entered into a definitive agreement under which First Interstate, parent company of First Interstate Bank, will acquire Cascade, parent company of Bank of the Cascades, in a cash and stock transaction for total consideration valued at approximately $589 million in aggregate, or $7.60 per share based on the First Interstate closing price of $38.30 per share on November 16, 2016. The transaction creates a unique regional banking franchise that extends from the Mountain West to the Pacific Northwest and provides First Interstate with a presence in several high-growth markets, including Bend, Oregon and Boise, Idaho.

Cascade is a relationship-oriented community bank based in Bend, Oregon with total assets of $3.2 billion, deposits of $2.7 billion, loans of $2.1 billion and 50 banking offices across Oregon, Idaho and Washington. After completion of the acquisition, First Interstate will have approximately $12.1 billion in total assets, $10.1 billion in total deposits, $7.6 billion in total loans and 131 banking offices.

“We are very excited to announce this transformational acquisition that leverages our significant investment in people, processes and technology. This opportunity is a good fit for us geographically, strategically, financially and culturally. Cascade’s operating philosophy, commitment to community banking and corporate responsibility are similar to ours, allowing for a seamless integration of our two companies,” said First Interstate President and Chief Executive Officer, Kevin Riley. “We are pleased to welcome Cascade’s employees, customers and shareholders and look forward to continuing the good work that Cascade has been doing. Both of our banks have very strong, relationship-centered cultures and this is an ideal extension of First Interstate into markets we have been evaluating for several years,” continued Mr. Riley.

“We believe First Interstate is an exceptional banking partner for Cascade,” commented Terry Zink, President and Chief Executive Officer of Cascade Bancorp. “Strategically they intend to grow Cascade’s branch network, as well as our metropolitan commercial banking centers across the northwest. It follows that they highly value the many Cascade bankers who are on the front line with our customer relationships and are committed to ensuring our loyal customers will benefit from this combination.”

Zink continued, “For nearly 50 years, First Interstate has demonstrated strong and stable banking leadership. Today, they are a recognized leader in community banking and consistently deliver quality and competitive financial services to their customers while making a clear and positive difference in the communities they serve. In light of our shared culture and commitment to community, I am excited for the prospects of our combined companies. Together, we will continue to deliver a highly personalized experience to our customers with the expanded set of products and services that First Interstate will provide our customers. Employees and shareholders will be well-served as part of the First Interstate family.”

Pursuant to the terms of the definitive merger agreement, Cascade shareholders will receive 0.14864 shares of First Interstate Class A common stock and $1.91 in cash in exchange for each share of Cascade common stock they hold. The exchange ratio is fixed and the portion of shares received by Cascade shareholders is expected to qualify as a tax-free exchange. Cascade shareholders will own approximately 20% of the outstanding capital stock of First Interstate once the transaction is complete.

First Interstate expects the transaction will result in long-term annual earnings per share “EPS” accretion of 10% and 2018 EPS accretion of over 8% after accelerating the debit interchange limitations from the Durbin amendment brought on by crossing $10 billion in consolidated total assets. First Interstate is expected to recover the tangible book value dilution experienced in this transaction in five years.

The boards of directors of each company have unanimously approved the transaction, and the directors and certain large shareholders of Cascade have entered into agreements with First Interstate pursuant to which they have agreed to vote their shares of Cascade common stock in favor of the transaction. Additionally, the directors of First Interstate have entered into agreements with Cascade pursuant to which they have agreed to vote their shares of First Interstate common stock in favor of the transaction.

First Interstate and Cascade expect to close the transaction in mid-2017 after satisfaction of customary closing conditions, including regulatory approvals and the approvals of the First Interstate and Cascade shareholders. Immediately following the completion of the acquisition, it is anticipated that Bank of the Cascades will be merged with and into First Interstate Bank. Two members of Cascade’s Board of Directors will be added to the First Interstate Board of Directors in order to maintain the community commitment that Cascade has established in important markets in the Pacific Northwest.

Barclays Capital Inc. served as exclusive financial advisor and Luse Gorman, PC served as legal counsel to First Interstate. Piper Jaffray & Co. served as exclusive financial advisor and Hunton & Williams LLP served as legal counsel to Cascade.

CONFERENCE CALL

First Interstate and Cascade management will review additional information regarding the transaction in a conference call beginning at 10:00 a.m. Mountain Time on Friday, November 18, 2016. The call may be accessed by dialing 1-877-507-0356. To participate via the Internet, log on to www.FIBK.com. A replay will be available approximately one hour after the end of the conference call by dialing 1-877-344-7529. The conference ID is 10096941. The call will also be archived on our website, www.FIBK.com.

About First Interstate BancSystem, Inc. and First Interstate Bank

First Interstate BancSystem, Inc. (NASDAQ: FIBK), is a financial services holding company, headquartered in Billings, Montana, with $9.0 billion in assets as of September 30, 2016. It is the parent company of First Interstate Bank, a community bank operating 81 banking offices, including online and mobile banking services, throughout Montana, Wyoming and South Dakota. As a recognized leader in community banking services with 28 consecutive years of profitability, First Interstate is driven by strong family and corporate values, as well as a commitment to long-term organic growth, exemplary customer service, exceeding customer expectations through its products and services, and supporting, with leadership and resources, the communities it serves.

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 the Pacific Northwest. Founded in 1977, Bank of the Cascades offers full-service community banking through 50 branches in Oregon, Idaho and Washington. 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.

http://www.businesswire.com/news/home/20161117006356/en/Interstate-BancSystem-Expands-Growth-Markets-Northwest-Acquisition

[clokisticking]

Thanx for nothing majority share holders ... Bank of the Cascades was rapidly returning to its former glory days and was going to make all of us rich beyond belief ... now you sold us all out with this merger ??

[clokisticking]

Businesses only expand like this when they are healthy and doing well ... CACB is going to the moon again like they did in the years just prior to the mortgage crisis

[Enterprising Investor]

Cascade Bancorp Reports First Quarter 2016 Results Including $470 Million Deposit Acquisition, Double-Digit Revenue And Organic Loan Growth (4/27/16)

BEND, Ore., April 27, 2016 /PRNewswire/ -- Cascade Bancorp (NASDAQ: CACB) ("Company" or "Cascade"), the holding company for Bank of the Cascades ("Bank"), today announced its financial results for the three months ended March 31, 2016.

First Quarter 2016 Financial Highlights

•Net income for the first quarter of 2016 was $1.9 million, or $0.03 per share, compared to $5.6 million, or $0.08 per share, for the fourth quarter of 2015 which included a $2.0 million ($0.02 per share) credit to loan loss provision.

•The first quarter 2016 earnings were reduced by non-recurring items netting $3.1 million (pretax), or $0.03 per share (after tax). These items mainly relate to costs incurred in connection with the acquisition and integration of 15 Bank of America branches as well as expenses related to the consolidation of several branch locations, partially offset by out-sized earnings on investment securities called during the period.

•At March 31, 2016, gross loans were $1.8 billion compared to $1.7 billion at year-end 2015. First quarter organic loan growth1 was $49.7 million, or 14.1% annualized.

•Total deposits rose 23.7%, or $493.0 million, compared to the fourth quarter of 2015 ("linked quarter") mainly due to the $469.9 million in total deposits assumed in the Bank of America branch acquisition.

•Cost of funds remained stable in the current quarter at 0.09% as compared to the linked quarter at 0.08%.

•Overall revenue was up at a double-digit annualized pace, including net interest income of $22.2 million, up $2.4 million, or 12.0%, from the linked quarter. The current quarter included $1.5 million in additional interest revenue on called securities.

•Net interest margin ("NIM") was 3.80% for the first quarter of 2016, compared to 3.52% in the linked quarter. Adjusted to exclude the aforementioned interest on called securities, the NIM for the March quarter was 3.54%2.

•Net loan recoveries for the first quarter were $0.02 million. Allowance for loan losses ("ALLL") at quarter end was 1.37% of gross loans. No provision or credit for loan losses was recorded in the current quarter.

•At March 31, 2016, stockholders' equity was $339.7 million, with book value per share of $4.67 and tangible book value3 per share of $3.35.

•Return on average tangible assets4 was 0.31% compared to 0.91% in the linked quarter.

•Return on average tangible stockholders' equity5 was 3.07% compared to 8.87% in the linked quarter.

Recent Event

•On April 26, 2016, the Company entered into a definitive agreement to acquire Prime Pacific Financial Services for an aggregate merger consideration of approximately $17.1 million, or $1.79 per Prime Pacific common share. Prime Pacific is a greater Seattle metro market bank with $119.4 million in assets which will leverage Cascade's strategy of supporting metro commercial lending growth by leveraging our low-cost core deposits.

"This quarter's accomplishments represent a solid start to 2016, giving us momentum to accelerate our financial returns in the future," said Terry Zink, President and CEO of Cascade Bancorp. "The highlight of the quarter was the successful closing and customer conversion of the acquired Bank of America branches located in Oregon and southwest Washington. This transaction provides the opportunity to drive both enhanced fee revenue as well as the reinvestment of the low cost deposits assumed in the branch acquisition into higher yielding loans through the balance of the year. Thus far, our new customer transaction volumes have been strong and we see the potential for further growth as our bankers effectively transition these customers to Cascade's higher touch community bank model. Importantly, as of mid-April we have retained approximately 97% of the $469.9 million in deposits that we acquired and our cost of funds is projected to be about 9 basis points going forward with over half of our deposits in checking accounts."

Bank of the Cascades President, Chip Reeves added, "We were also pleased with our double digit organic loan growth during the quarter, which was driven by originations in our Portland and newly opened Seattle commercial banking centers. Our strategy of redeploying a low cost deposit base into fast-growing metropolitan markets has been a strong success. In fact, our Seattle team has ramped their loan pipeline and production more quickly than expected and are currently a full quarter ahead of projections. Looking to the balance of 2016, we will continue to opportunistically hire experienced bankers, such as our March hiring of five bankers in Idaho, to further augment organic loan growth."

Financial Review

Bank of America Branch Acquisition:

The financial statements as of March 31, 2016 are inclusive of approximately $469.9 million in deposit liabilities assumed in connection with the acquisition of 15 Bank of America branches (the "branch acquisition"). The transaction closed on March 4, 2016. The following comparative balance sheet and income statement information is notably affected by the branch acquisition, including certain one-time charges recorded in connection with the transaction.

Balance Sheet:

At March 31, 2016 as compared to December 31, 2015 and March 31, 2015

Total assets at March 31, 2016 were $3.0 billion compared to $2.5 billion for the prior quarter and $2.4 billion a year ago, with the increase over prior periods due primarily to assets assumed with the closing of the branch acquisition during the current quarter.

Cash equivalents at March 31, 2016 were at $343.5 million due to increased deposits assumed in the branch acquisition. This compares to $77.8 million and $59.8 million for the linked quarter and year ago quarter, respectively.

Investment securities classified as available-for-sale and held-to-maturity increased $123.3 million to $572.9 million at March 31, 2016 as compared to $449.7 million at December 31, 2015 and $466.3 million a year ago. The increase is due to the redeployment of cash assumed in the branch acquisition into securities and adjustable rate mortgages ("ARMs") during the current quarter. The deployment of a significant portion of remaining cash from the branch acquisition is expected to continue during the second quarter. Anticipated yields on these new earning assets are targeted to average 2.25% in aggregate with lower yields on floating rate assets and higher yields on ARMs, whole loan purchases, and other fixed rate securities.

Gross loans at March 31, 2016, were $1.8 billion, up $96.5 million, or 23.0% (annualized), from the linked quarter with the most significant growth visible in commercial real estate, consumer residential, commercial and industrial ("C&I") and construction loans. The increase over linked quarter includes both organic loan growth and purchased loans related to deployment of funds received in the branch acquisition. Organic loan growth was 14.1% (annualized) for the March 2016 quarter and was largely centered in our C&I and commercial portfolios. The purchased ARM portfolio totaled $154.5 million at March 31, 2016. Shared national credit loan balances were $160.6 million at March 31, 2016 compared to $168.4 million for the linked quarter and $204.9 million a year earlier. Wholesale loan portfolios are designed to diversify the Company's overall loan portfolio by geography industry and loan type.

The ALLL at March 31, 2016 was steady at $24.4 million as compared to December 31, 2015 with recoveries effectively offsetting charge offs for the period. See additional discussion in "Asset Quality" below.

FHLB stock was $3.1 million at March 31, 2016 compared to $3.0 million at year end 2015 and $25.4 million for the year ago period. The year over year reduction was due to changes in FHLB membership stock requirements in connection with the Seattle FHLB merging with Des Moines FHLB in the second quarter of 2015.

Total deposits as of March 31, 2016 increased 23.7% to $2.6 billion compared to $2.1 billion as of December 31, 2015, and $2.0 billion as of March 31, 2015. These increases were mainly attributable to the $469.9 million of deposits assumed in the branch acquisition. Non-interest bearing deposits were $867.6 million, or 33.7% of total deposits. Combined with interest checking balances, total checking balances were 55.4% of total deposits. Money market and saving accounts were 36.1% while CDs were 8.5% of total deposits.

The overall cost of funds for the quarter was 0.09% including some borrowing costs related to the purchase of securities in anticipation of the branch acquisition. Management estimates cost of funds should approximate 9 basis points going forward.

Total stockholders' equity at March 31, 2016 was $339.7 million compared to $336.8 million at December 31, 2015. This increase is primarily a result of the first quarter 2016 net income of $1.9 million. Tangible common stockholders' equity6 was $244.0 million, or $3.35 per share, at March 31, 2016, as compared to $251.3 million, or $3.45 per share, at December 31, 2015. The ratios of common stockholders' equity to total assets and tangible common stockholders' equity to total assets7 were 11.39% and 8.18% at March 31, 2016, respectively, and 13.65% and 10.18% at December 31, 2015, respectively.

Income Statement:

Linked Quarter Comparison: Quarter ended March 31, 2016 as compared to the quarter ended December 31, 2015

Net income for the first quarter of 2016 was $1.9 million, or $0.03 per share, compared to $5.6 million, or $0.08 per share, for the linked quarter. The current quarter included approximately $3.1 million in net pretax non-recurring items, mainly related to costs incurred in connection with the branch acquisition, such as customer integration and IT conversion expenses, as well as certain branch consolidation costs. These costs were partially offset by out-sized earnings on investment securities called during the period.

Net interest income for the first quarter 2016 was up $2.4 million, or 12.0%, compared to the linked quarter. The current quarter includes $1.5 million in generally non-recurring interest on called securities. Excluding this item, net interest income improved $0.9 million, or 4.4%, from the linked quarter due to an increase in average earning assets. Of this, loan discount accretion was up $0.2 million from the linked quarter due to a higher rate of loan payoffs on the acquired Home Federal Bancorp portfolio.

NIM was 3.80% for the first quarter of 2016, compared to 3.52% in the linked quarter. Excluding the aforementioned extra-interest on called securities, the NIM for the March quarter was 3.54%. The NIM is expected to decline in succeeding quarters as a result of the increase in lower yielding cash and cash equivalents that occurred with the closing of the branch acquisition.

Non-interest income for the first quarter of 2016 was $5.5 million, compared to $5.8 million in the linked quarter. Service fees were higher on a linked quarter basis mainly owing to higher transaction volumes including those from acquired branch customers during the month of March. SBA and mortgage related revenues were seasonally flat, while customer swap activity was higher than the linked quarter. Other income was lower by $0.5 million in gain on sale of a decommissioned branch in the linked quarter.

Non-interest expense in the first quarter of 2016 was $24.5 million compared to $18.1 million in the linked quarter mainly due to the effects of the one-time acquisition and integration costs incurred with the branch acquisition that totaled approximately $2.3 million. In addition, non-recurring costs of $1.3 million were incurred to consolidate four branch locations, including contract breakage and severance. Current quarter expenses included $0.3 million in settlement of several contract issues. Numerous non-interest expense line items were impacted by these generally non-recurring items. Human resource expenses included $0.8 million related to acquired branch employees, including healthcare and other benefits, retention and conversion success initiatives, and the above mentioned branch consolidation and severance items. Salary costs included one month of recurring salary and benefit expense for the new branch staff. Current quarter IT related expenses were higher than in the linked quarter due to one-time systems conversion expenditures of $0.4 million. Occupancy was higher due to costs associated with the new branches and certain branch consolidations. Professional services were also elevated mainly due to conversion related costs.

There was no provision for loan loss in the current quarter as compared to a credit to the provision of $2.0 million in the linked quarter. As discussed in "Asset Quality" below, the current quarter includes largely offsetting charge-offs and recoveries, including $3.3 million of gross recoveries on previously charged-off loans offset by a $2.7 million write-down on a loan in the oil and gas sector. The income tax provision for the first quarter of 2016 was $1.2 million, representing a 37.4% effective tax rate for the period, slightly lower than statutory due to the impact of permanent differences.

Comparison with year ago period: For the three ended March 31, 2016 and 2015

Net income for the first quarter of 2016 was $1.9 million, or $0.03 per share, compared to $5.1 million, or $0.07 per share, for the first quarter of 2015. Lower net income is mainly due to the one-time costs incurred in connection with the branch acquisition as described above.

Net interest income for the first quarter 2016 was higher than the year ago period primarily due to $1.5 million in non-recurring interest on called securities in the current period, as well as well net revenues arising from higher earning assets in the current period.

Non-interest income for the three months ended March 31, 2016 was $5.5 million, down from $6.1 million during the year ago period. Year-over-year improvements were largely transaction volume related with service fees, card and interest rate swap revenues up somewhat as a result of strengthening economies in our service areas. Mortgage, SBA and other income were off slightly as compared to the year ago period, with the decrease in other income related to a gain on sale of decommissioned branches in the first quarter of 2015.

Non-interest expense in the three months ended March 31, 2016 was $24.5 million compared to $18.8 million in the respective year ago period. Higher expense during the three months ended March 31, 2016 compared to the year ago period relate primarily to one-time costs incurred in connection with the branch acquisition.

Income tax expense in the three months ended March 31, 2016 was $1.2 million as compared to $3.1 million in the year ago period.

Asset Quality

For the quarter ended March 31, 2016, loan charge offs were offset by recoveries, and there was no provision for loan losses during the period. This resulted in a ratio of Loan Loss Reserve to total loans of 1.37% of total loans at March 31, 2016 compared to 1.45% at December 31, 2015 and 1.48% at March 31, 2015. Recoveries totaled $3.3 million, mainly arising from recovery on a loan that was previously charged off. This was offset by a $2.7 million charge off related to certain downgrades in the oil and mining sector. Risk-rating downgrades were partially offset by several upgrades of previously adversely risk rated credits. The Company's aggregate mining and energy exposure is less than 1.0% of total loans with ample reserves allocated to these credits. Credit metrics affected by these changes include non-performing assets as a percentage of total assets at 0.49% at March 31, 2016, as compared to 0.34% at December 31, 2015 and 0.53% at March 31, 2015. Classified loans totaled $49.5 million, or 2.8% of total loans, at March 31, 2016 compared to $39.5 million, or 2.3% of total loans, at December 31, 2015. At March 31, 2016, delinquent loans were 0.30% of the loan portfolio. This compares to 0.24% at December 31, 2015 and 0.17% at March 31, 2015.

Acquired loans are recorded at fair value with no reserve provisions brought forward in accordance with purchase accounting principles. The net fair value adjustment to acquired loans from the Home Federal Bancorp acquisition was $6.0 million, consisting of an interest rate and a credit mark which will be accreted over the life of the loans (approximately 10 years).

Conference Call

As previously announced, a conference call and webcast discussing the first quarter 2016 results will be held today, April 27, 2016 at 2:00 p.m. Pacific Time (5:00 p.m. Eastern Time). Stockholders, analysts and other interested parties are invited to join the webcast by registering at http://public.viavid.com/index.php?id=119173 in or the live conference call by dialing [phone] prior to 2:00 p.m. Pacific Time.

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 the Pacific Northwest. Founded in 1977, Bank of the Cascades offers full-service community banking through 51 branches in Oregon, Idaho and Washington. 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 www.botc.com.

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http://www.prnewswire.com/news-releases/cascade-bancorp-reports-first-quarter-2016-results-including-470-million-deposit-acquisition-double-digit-revenue-and-organic-loan-growth-300258661.html

[Enterprising Investor]

Cascade Bancorp Announces Agreement to Acquire Prime Pacific Financial Services in the Greater Seattle Metro Market (4/26/16)

BEND, Ore., April 26, 2016 /PRNewswire/ -- Cascade Bancorp (NASDAQ: CACB or "Cascade") and Prime Pacific Financial Services (OTC PINK: PPFS or "Prime Pacific") today announced that Cascade Bancorp and Prime Pacific have entered into a definitive agreement and plan of merger pursuant to which Cascade will acquire Prime Pacific Financial Services, the holding company of Prime Pacific Bank, a Snohomish county, national banking association with $119.4 million in assets, $94.7 million in net loans, $104.8 million in total deposits at December 31, 2015.

Cascade expects the transaction will result in modest earnings accretion in 2016 (excluding one-time costs) and expects approximately 5% accretion to earnings in 2017. The transaction is projected to be immediately accretive to tangible book value and capital, with a solid internal rate of return.

Terry Zink, President and Chief Executive Officer of Cascade, remarked, "This opportunity expands our commercial banking footprint in the strong Seattle market. Prime Pacific's solid commercial and SBA lending expertise is consistent with our strategy to increase our market share of commercial loans in fast-growing Northwest metropolitan markets. We look forward to welcoming Prime Pacific's banking professionals, customers, and shareholders to our Cascade team."

Glenn Deutsch, President and Chief Executive Officer of Prime Pacific, stated, "Bank of the Cascades is a strong and growing Pacific Northwest community bank that is focused on expanding its presence in the Seattle area. Our bankers are excited to be part of that expansion which will enable us to better serve existing customers and attract new clients as well. Like us, they value high quality customer service and commitment to community. Our customers and employees will benefit greatly from the merger of our two organizations."

Timothy J. McMahon, Chairman of the Prime Pacific Financial Services, Inc. Board of Directors, commented, "In entering into this agreement with Cascade, the Board of Prime Pacific believes that is has both obtained a solid value for our shareholders and also found an excellent partner for our customers and employees going forward. We believe that Cascade's existing presence in the greater Seattle market and their commitment to customers, employees and community will continue the model we have established and present all of our constituents with greater choices going forward."

The board of directors of each company has approved this transaction. The acquisition of Prime Pacific by Cascade is subject to customary conditions, including the approval of Prime Pacific's shareholders and bank regulatory authorities, and is expected to close in the third quarter of 2016. Immediately following the completion of the acquisition, it is anticipated that Prime Pacific Bank will be merged with and into Bank of the Cascades. Directors, select shareholders and executive officers of Prime Pacific have entered into agreements with Cascade and Prime Pacific pursuant to which they have committed to vote their shares of Prime Pacific common stock in favor of the acquisition.

Under the terms of the definitive agreement and upon consummation of the acquisition, holders of Prime Pacific common stock will have the right to receive 0.3050 shares of Cascade common stock for each share of Prime Pacific common stock they own, subject to certain adjustments, including a possible pre-closing special dividend in the event adjusted equity at closing exceeds a minimum equity target. Based on a $5.86 closing price of Cascade's common stock on April 22, 2016, the aggregate merger consideration is approximately $17.1 million, or $1.79 per share of Prime Pacific common stock. Holders of Prime Pacific's stock options will receive stock options for Cascade stock at the exchange ratio. The exchange ratio reflecting the number of shares of Cascade's common stock to be issued in exchange for each share of Prime Pacific common stock is fixed so long as Cascade's stock price remains between $5.10 and $6.90, as measured by the 20-day average volume weighted average price ("VWAP") up to and including the fifth trading day prior to closing of the transaction. The value of the stock consideration will fluctuate based on the value of Cascade's common stock within this range. In the event the VWAP of Cascade's common stock is outside this range, then the exchange ratio will be adjusted. Giving effect to the transaction, and based upon an exchange ratio of 0.3050, Prime Pacific common shareholders will own approximately 3.8% of the outstanding shares of the combined company.

Piper Jaffray & Co. served as financial advisor and Hunton & Williams LLP served as legal counsel to Cascade Bancorp. D.A. Davidson & Co. served as financial advisor and Miller Nash Graham & Dunn LLP served as legal counsel to Prime Pacific Financial Services, Inc.

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 the Pacific Northwest. Founded in 1977, Bank of the Cascades offers full-service community banking through 51 branches in Oregon, Idaho and Washington. 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 www.botc.com.

ABOUT PRIME PACIFIC BANK

Founded 20 years ago, Prime Pacific Bank is a full service community bank headquartered in Lynnwood with three branch locations in Lynnwood, Kenmore, and Mill Creek. Providing a full range of retail banking services, Prime has served individuals and small to medium-sized businesses located in the south Snohomish County and northeast King County.

For further information, please visit our website at http://www.primepacificbank.com.

http://www.prnewswire.com/news-releases/cascade-bancorp-announces-agreement-to-acquire-prime-pacific-financial-services-in-the-greater-seattle-metro-market-300258029.html#continue-jump

[Enterprising Investor]

Bank of the Cascades Completes Acquisition of 15 Bank of America Branches, Increase in deposits of $470 million or 23% (3/08/16)

BEND, Ore., March 8, 2016 /PRNewswire/ -- Cascade Bancorp (NASDAQ: CACB) ("Company" or "Cascade"), the holding company for Bank of the Cascades, today announced the completion of the acquisition of 15 former Bank of America branches in Southern and Coastal Oregon and Western Washington. Bank of the Cascades is now Oregon's largest community bank with approximately $3.0 billion in assets, operating 51 branches in Oregon, Washington and Southwest Idaho, plus commercial banking centers located in downtown in Portland and Seattle.

Cascade assumed approximately $470 million of branch deposits and welcomed nearly 60,000 new customer accounts in the transaction. With the addition of new branches and new communities, Cascade was pleased to offer continued employment to employees at the branches impacted by the change.

The transaction reflects Bank of the Cascades' continued effort to become the Northwest's premier community bank that is committed to supporting the financial well-being of both customers and local economies. Cascade's strategic goal is to grow the bank to $5 billion in assets over time through both organic loan growth and value-enhancing acquisitions in the Northwest. This acquisition solidifies Cascade as one of the fastest-growing banks in the region while improving its deposit market share to a top three ranking in many of their communities.

"First I would like to welcome all of our new customers to Bank of the Cascades. We are very pleased to be able to provide a continuation of banking services to those customers and communities who were impacted by Bank of America's decision to sell their branches. You should know that Bank of the Cascades offers a rare combination of top-notch banking products and services with the local and personalized delivery of a community bank. We provide access to a full range of business and consumer banking products and service lines, in addition to making all of our lending decisions at the local level by knowledgeable bankers who our customers know and trust," said Terry Zink, Chief Executive Officer of Bank of the Cascades. "Our customers also have the satisfaction of knowing that their deposits are reinvested directly back into their local community to help businesses expand, increase homeownership, support the work of worthy nonprofits, and much more."

"It's an exciting time to be a part of the Bank of the Cascades family," said Chip Reeves, President and Chief Operating Officer of Bank of the Cascades. "Our vision to see communities of all sizes across the Northwest thrive economically took an important step forward today. We look forward to making a positive difference in our new communities, as well as continuing to invest in the prosperity of all the communities we serve."

New Bank of the Cascades communities in Oregon include Ashland, Bandon, Lincoln City, Newport, North Bend, Reedsport, Roseburg, Grants Pass, Klamath Falls, Medford and Seaside. Bank of the Cascades also officially entered Washington State's retail banking market by acquiring Bank of America branches in the communities of Cathlamet, Raymond and Westport.

The transaction with Bank of America marks Bank of the Cascades' second major acquisition in the last two years as part of its efforts to position itself as the premiere community bank serving Northwest business and consumer customers. In 2014, Bank of the Cascades acquired Nampa, Idaho-based Home Federal Bank, which significantly expanded its presence in Southwest Idaho and Oregon.

About Bank of the Cascades
Bank of the Cascades is the principal subsidiary of Cascade Bancorp (NASDAQ: CACB). Headquartered in Bend, Oregon, Bank of the Cascades delivers personalized relationship banking, competitive financial products and advanced technology applied for the convenience of customers. Founded in 1977, Bank of the Cascades offers full-service community banking through 51 branches in Central Oregon, Southern and Coastal Oregon, Willamette Valley, Western Washington and Southwest Idaho. Throughout its history, the bank has been recognized for its long-standing tradition of corporate philanthropy. For more information, visit www.botc.com.

http://www.prnewswire.com/news-releases/bank-of-the-cascades-completes-acquisition-of-15-bank-of-america-branches-increase-in-deposits-of-470-million-or-23-300232746.html

[Enterprising Investor]

Bank Of The Cascades Announces The Acquisition Of 15 Branches (10/28/15)

BEND, Ore., Oct. 28, 2015 /PRNewswire/ -- Cascade Bancorp (NASDAQ: CACB) ("Company" or "Cascade"), the holding company for Bank of the Cascades ("Bank"), today announced that the Bank has entered into an agreement to purchase 12 Oregon branch locations and three Washington branch locations from Bank of America, National Association. This acquisition allows Cascade the opportunity to enhance and strengthen its footprint in Oregon while providing entry into the Washington market.

Cascade will assume approximately $707 million of branch deposits in the transaction. Pending regulatory approval and the satisfaction of customary closing conditions, the completion of the transaction is expected to occur in the first quarter of 2016. Cascade plans to retain current employees working at the branches and is committed to a smooth transition for customers.

"I am pleased to announce that this acquisition will include additional locations in Southern Oregon, as well as new branches in Coastal Oregon communities and will provide an entry into neighboring Washington State. We look forward to welcoming our new employees and customers to a locally based bank that has served communities in the Pacific Northwest for nearly 40 years," commented Terry Zink, President and CEO of Cascade. "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 acquisition will strengthen Cascade's core deposit and customer relationship base in the Southern and Coastal counties of Oregon, with its deposit market share increasing to a top three ranking in many of these communities. Cascade's strategic goal is to grow the company to $5 billion in assets over time through both organic loan growth and value-enhancing bank acquisitions in the Northwest.

Cascade Bancorp was advised in this transaction by Macquarie Capital (USA) Inc. as financial advisor and Hunton & Williams LLP as legal counsel. Additional information regarding the branch acquisition is available in the Company's Form 8-K, as filed with the Securities and Exchange Commission on October 28, 2015.

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, Idaho and Washington markets. Founded in 1977, Bank of the Cascades 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. 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 botc.com.

http://www.prnewswire.com/news-releases/bank-of-the-cascades-announces-the-acquisition-of-15-branches-300168433.html

[Enterprising Investor]

Cascade Bancorp Reports Third Quarter 2015 Net Income Of $5.1 Million, Or $0.07 Per Share, Driven By Solid Organic Loan And Deposit Growth (10/22/15)

BEND, Ore., Oct. 22, 2015 /PRNewswire/ -- Cascade Bancorp (NASDAQ: CACB) ("Company" or "Cascade"), the holding company for Bank of the Cascades ("Bank"), today announced its financial results for the three and nine months ended September 30, 2015.

Third Quarter 2015 Financial Highlights

•Net income for the third quarter of 2015 was $5.1 million, or $0.07 per share, compared to $4.8 million, or $0.07 per share, for the second quarter of 2015 ("linked quarter").

•Third quarter organic loan growth1 was approximately $26.3 million, or 7.7% annualized, and is net of a large construction payoff. Year-to-date ("YTD") annualized organic growth was 11.9%. At September 30, 2015, gross loans were $1.6 billion.

•Total deposits were $2.1 billion at September 30, 2015, up $36.5 million compared to the linked quarter with non-interest bearing accounts up $44.7 million, or 6.3%, from the linked quarter. At quarter-end, total checking balances represented over 57.5% of total deposits with an overall cost of funds of 0.08%.

•Third quarter net interest income was $20.4 million, up $1.1 million, or 5.4%, from the linked quarter.

•Net interest margin ("NIM") was 3.72% for the third quarter of 2015, compared to 3.70% in the linked quarter.

•Third quarter net loan recoveries totaled $3.1 million, bringing the allowance for loan losses ("ALLL") to 1.62% of gross loans.

•At September 30, 2015, stockholders' equity was $331.6 million, with book value per share of $4.56 and tangible book value2 per share of $3.38.

•Return on average tangible assets3 was 0.85% compared to 0.83% in the linked quarter.

•Return on average tangible stockholders' equity4 was 8.33% compared to 8.06% in the linked quarter.

•On October, 9, 2015, the Bank announced the hiring of a commercial banking team in the Seattle, Washington market.

"Cascade is truly a unique banking franchise because of our strong market share in the high growth markets of the Pacific Northwest. Our footprint in Oregon and Idaho is benefiting from strong population in-migration combined with solid economic trends. This robust backdrop has enabled Cascade to achieve a double-digit rate of organic loan growth during 2015," said Terry Zink, President and CEO. "Importantly, organic loan demand remained strong in the third quarter with $26.3 million in net originations, representing annual growth of 7.7%. This growth was accomplished despite a sizable $13 million payoff of a completed commercial real estate construction loan during the quarter. Our current pipeline remains very solid, providing visibility for continued loan growth through the balance of the year and into 2016."

Mr. Zink continued, "Our deposit flows are one of the differentiating traits for Cascade. Non-interest bearing checking deposits increased at a double-digit pace and reflect the strong economic growth in our markets that has contributed to increased average balances for both business and retail customers. This strength has supported our strategy to diversify our loan footprint to markets outside of our core branch network. Our Portland commercial banking center is a prime example of the successful execution of this strategy. We are optimistic that we can replicate this success in Seattle, where we opened a commercial banking center earlier this month with an experienced local banking team led by Brandon Elieff, who has 15 years of expertise in middle market commercial and industrial ("C&I") and business banking in the Seattle Metro Area."

Financial Review

The financial statements as of September 30, 2015 and 2014 are inclusive of purchase accounting adjustments to Home Federal Bancorp ("HFB") assets and liabilities, which were acquired on May 16, 2014. Year-over-year comparisons are significantly affected by the HFB-related results and one-time charges in the comparable periods of 2014.

The financial highlights for the third quarter of 2015 include continued loan and deposit growth which resulted in higher net interest income as compared to the linked quarter. This improvement was partially offset by a modest sequential decline in non-interest income arising from non-recurring items in the prior period.

Balance Sheet:

At September 30, 2015 as compared to June 30, 2015 and December 31, 2014

Total assets at September 30, 2015 were $2.5 billion, up versus prior periods due mainly to increased organic loans and the acquisition of wholesale loans, as well as growth in core deposit balances.

Increases in cash and equivalents at September 30, 2015 relate mainly to increases in deposits net of changes in loan balances during the respective periods.

At September 30, 2015, investment securities classified as available-for-sale and held-to-maturity decreased to $439.9 million as compared to $472.5 million at December 31, 2014. During the quarter, the Company sold approximately $30.1 million in short duration mortgage-backed securities ("MBS") with partial redeployment into current production adjustable rate mortgages ("ARMs") to extend its "roll-down-the-curve" portfolio strategy.

Net of changes in both our organic and wholesale loan portfolios, gross loans at September 30, 2015 were $1.6 billion, up $21.4 million from the linked quarter. The current quarter included a large payoff of a commercial construction loan of approximately $13 million. Year-to-date, gross loans increased 10.4%, with growth distributed among commercial real estate, construction, and consumer residential loans. The latter included both retained and acquired ARMs. Strategically, the Bank continued to expand its ARM portfolio to further diversify its overall loan portfolio by geography and loan type. Organic growth was partially offset by a modest decline in the shared national credits ("SNC") portfolio.

The ALLL at September 30, 2015 was $26.6 million as compared to $22.1 million at December 31, 2014. The increase is a result of year-to-date net recoveries of $6.6 million, less a $2.0 million provision credit in the first quarter of 2015. Net recoveries for the current quarter were $3.1 million, primarily related to a large project loan that was previously charged-off.

FHLB stock was $3.0 million at September 30, 2015 compared to $25.6 million at year end 2014. The 2015 reduction was due to changes in FHLB membership stock requirements in connection with the Seattle FHLB merging with Des Moines FHLB in the second quarter of 2015.

Total deposits as of September 30, 2015 increased 5.1% to $2.1 billion compared to December 31, 2014. Non-interest bearing accounts increased by $44.7 million to $749.9 million, or 6.3%, from the linked quarter and were up 21.1% for the year-to-date period. Offsetting this increase in non-interest bearing accounts was a reduction in time deposits of $16.0 million compared to the linked quarter and $50.2 million for the year-to-date period, owing to a strategic run-off of higher priced CDs acquired in the HFB acquisition. The year-to-date 2015 overall cost of funds was 0.09%.

Total stockholders' equity at September 30, 2015 was $331.6 million compared to $315.5 million at December 31, 2014. This increase is primarily a result of 2015 net income of $15.0 million. Tangible common stockholders' equity5 was $245.9 million, or $3.38 per share, at September 30, 2015 as compared to $227.7 million, or $3.14 per share, at December 31, 2014. The ratios of common stockholders' equity to total assets and tangible common stockholders' equity to total assets6 were 13.43% and 9.96% at September 30, 2015, respectively, and 13.48% and 9.73% at December 31, 2014, respectively.

At September 30, 2015 as compared to September 30, 2014 (the year ago period)
Compared to the year ago period, cash and cash equivalents decreased $12.2 million and investment securities classified as available-for-sale and held-to-maturity decreased $5.3 million. The decreases were due to excess liquidity resulting from the HFB acquisition being deployed into growth in loans over the period.

On a year-over-year basis, gross loans increased $181.1 million to $1.6 billion, or an increase of 12.4%. Approximately 73% of this increase is owed to organic growth, with the remaining growth in the wholesale loan portfolio for the strategic reasons described above.

Total deposits increased $96.6 million, or 4.9%, at September 30, 2015 compared to September 30, 2014. In this same period, non-interest bearing accounts increased by $105.9 million, or 16.4%, and interest bearing demand deposits increased by $43.0 million, or 4.4%. These increases were offset by runoff in higher priced CDs acquired with the HFB acquisition; overall time deposits decreased $57.2 million, or 23.4%.

Income Statement:
For the quarter ended September 30, 2015 as compared to the quarter ended June 30, 2015(the linked quarter)

Net income for the third quarter of 2015 was $5.1 million, or $0.07 per share, compared to $4.8 million, or $0.07 per share, in the linked quarter.

Total interest income was $20.8 million for the three months ended September 30, 2015 as compared to $19.8 million in the linked quarter due to higher volume of earning loans. The NIM for the three months ended September 30, 2015 was stable at 3.72%. Yields on earning assets remained stable while the cost of funds improved to 0.08% for the quarter.

Non-interest income for the third quarter of 2015 was $6.4 million, compared to $6.7 million in the linked quarter. Service fees were seasonally higher and SBA related revenues increased compared to the prior period. Other income was lower because the linked quarter included a combined $1.1 million related to a vendor production performance bonus and the sale of merchant services portfolio that was partially offset by an approximate $0.5 million in gain on sale of short duration securities in the current period.

Non-interest expense in the third quarter of 2015 was $19.1 million compared to $18.4 million in the linked quarter. Salary and benefit expense for the current quarter increased due to incentive and commission-related costs that were seasonally higher, as well as an increase in funding of management's annual performance bonus pool. Current quarter expenses were lower in IT due to accrual timing, while occupancy expenses were down on a recovery on disposition of a decommissioned branch facility. Professional services were elevated due to costs for the Company's conversion to a single imaging system and legal expenses, including those related to the large loan recovery described above.

The income tax provision for the third quarter of 2015 was $2.6 million, representing a 34.0% effective tax rate for the period, slightly lower than statutory due to the impact of permanent differences.

Income Statement:
For the three and nine month periods ended September 30, 2015 compared to year ago periods

Net income for the third quarter of 2015 was $5.1 million compared to $2.4 million for the third quarter of 2014. Net income for the nine months ended September 30, 2015 was $15.0 million as compared to a loss of $1.3 million for the year ago period. The nine months 2014 loss period was due to the costs incurred in the HFB acquisition. In addition, improvements in 2015 earnings are attributable to higher net interest income arising from increased earning assets from the HFB acquisition, as well as significantly increased non-interest income. The acquisition of HFB also resulted in a decline in the overall loan to deposit ratio due to HFB's high level of cash and securities. Since the acquisition, the Company has been successful in growing its organic, community bank loan portfolio.

Non-interest income for the three and nine months ended September 30, 2015 was $6.4 million and $19.2 million, respectively, up from $5.5 million and $13.7 million during the respective year ago periods. Much of the year-over-year improvement is related to the Company's increased customer base arising from the HFB acquisition, as well as the implementation and expansion of sales in its card, mortgage, interest rate swap, and SBA lines of business. This progress also reflects improvement in the local economies in its service areas.

Non-interest expense in the three and nine months ended September 30, 2015 was $19.1 million and $56.3 million, respectively, compared to $19.7 million and $63.8 million in the respective year ago periods. The changes between the three and nine months ended September 30, 2015 and the year ago periods relate primarily to the HFB acquisition costs incurred in 2014.

Income tax expense in the three and nine months ended September 30, 2015 was $2.6 million and $8.6 million, respectively, as compared to a tax expense of $2.0 million and a tax benefit of $2.8 million, respectively, in the year ago periods. The changes between the current three and nine month periods and the year ago periods relate to the tax impact of the HFB acquisition in 2014.

Asset Quality

Credit quality metrics were solid and remain stable for the current quarter. Net loan recoveries totaled $6.6 million year-to-date 2015, including $3.1 million for the third quarter, as compared to net loan recoveries of $0.3 million for the linked quarter and $0.9 million for the year ago quarter. The ratio of loan loss reserve to total loans increased to 1.62% as of September 30, 2015 and as compared to 1.45% at June 30, 2015 and 1.48% at December 31, 2014. A portion of the increase in reserves has been allocated to the SNC portfolio.

At September 30, 2015, delinquent loans were 0.31% of the loan portfolio. This compares to 0.07% at June 30, 2015, 0.27% at December 31, 2014, and 0.34% at September 30, 2014. Non-performing assets as a percentage of total assets was 0.36% at September 30, 2015, as compared to 0.41% at June 30, 2015, 0.64% at December 31, 2014 and 0.74% at September 30, 2014. General improvement in the rate of delinquency reflects improving economic conditions.

Acquired loans are recorded at fair value with no reserve provisions brought forward in accordance with purchase accounting principles. The net fair value adjustment to acquired loans from the HFB acquisition was $6.0 million, consisting of an interest rate and a credit mark which will be accreted over the life of the loans (approximately 10 years).

Conference Call

As previously announced, a conference call and webcast discussing the third quarter 2015 results will be held today, October 22, 2015 at 2:00 p.m. Pacific Time (5:00 p.m. Eastern Time). Stockholders, analysts and other interested parties are invited to join the webcast by registering at http://public.viavid.com/index.php?id=116429 in or the live conference call by dialing [phone] prior to 2:00 p.m. Pacific Time.

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, Idaho and Washington markets. Founded in 1977, Bank of the Cascades 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. 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 www.botc.com.

http://www.prnewswire.com/news-releases/cascade-bancorp-reports-third-quarter-2015-net-income-of-51-million-or-007-per-share-driven-by-solid-organic-loan-and-deposit-growth-300164970.html

[Enterprising Investor]

Cascade Bancorp Reports First Quarter 2015 Net Income Of $5.1 Million, Or $0.07 Per Share, And Strong Loan Growth During The Period (5/04/15)

BEND, Ore., May 4, 2015 /PRNewswire/ -- Cascade Bancorp (NASDAQ: CACB) ("Company" or "Cascade"), the holding company for Bank of the Cascades ("Bank"), today announced its financial results for the three months ended March 31, 2015.

Q1 2015 Financial Highlights

•Net income for the quarter was $5.1 million, or $0.07 per share, compared to $5.0 million, or $0.07 per share, for the fourth quarter of 2014 ("linked quarter"). First quarter 2015 net income benefitted from approximately $2.1 million (pre-tax) of one-time items.

•Loan growth for the quarter was $79.9 million, to $1.6 billion. Organic growth1 from the linked quarter was approximately $33.7 million, or 2.3% (9.2% annualized), with increases in commercial real estate ("CRE") loans, construction loans, and consumer residential loans.

•Total deposits were up $33.6 million over the linked quarter. Demand deposits increased by $58.1 million, or 9.4% on a linked quarter basis, partially offset by runoff in higher priced certificates of deposit ("CDs") acquired in the acquisition of Home Federal Bancorp, Inc. ("HFB") in May 2014. Checking balances represented over 55% of total deposits and the overall cost of funds was 0.11% compared to 0.13% during the linked quarter.

•Net interest margin ("NIM") was 3.74% for the quarter, compared to 3.68% in the linked quarter and 3.83% in the first quarter 2014 (prior to the HFB acquisition).

•$2.0 million credit to the loan loss provision arising from the remediation of a loan previously written off; the third consecutive quarter of net recoveries.

•Credit quality metrics were solid with allowance for loan losses maintained at 1.48% of gross loans.

•At March 31, 2015, stockholders' equity was $322.0 million compared to $315.5 million at December 31, 2014.

•Return on average assets ("ROAA") was 0.88% compared to 0.84% in the linked quarter and 0.28% in the first quarter 2014.

•Return on equity ("ROE") was 6.52% compared to 6.41% in the linked quarter and 2.02% in the first quarter 2014.

"I am very pleased with our progress this quarter, which reflects significant growth and positive financial metrics," said Terry Zink, President and CEO. "First and foremost, our organic loan growth in the first quarter was solid and broad-based, an indication of not only improved levels of business activity in our footprint but also strong execution by our bankers. Additionally, this quarter's momentum and improving loan pipeline bodes well for continued revenue growth. Meanwhile, the $2.0 million credit to our loan loss provision this quarter underscores the strategic benefit of our aggressive remediation of credit issues in past years."

Mr. Zink continued, "One differentiating characteristic of the Cascade franchise is our strong market share in growing communities in the Northwest. The U.S. Census Bureau recently reported that Cascade's main banking markets in the Bend and Boise metropolitan statistical areas were both in the 95th percentile in the nation in rate of population growth. Thus, our key strategic initiatives are to generate organic loan growth faster than our peers while expanding our low-cost core deposit franchise. At the same time, we remain proactive in the pursuit of value enhancing merger and acquisition opportunities that are strategically coherent. Taken together, we have set a goal to grow Cascade toward $5 billion in assets over a medium term horizon."

Financial Review

The financial statements as of March 31, 2015 are inclusive of purchase accounting adjustments to HFB assets and liabilities, which were acquired on May 16, 2014. The following year over year comparisons are significantly affected because HFB related results are included for the March 31, 2015 quarter, but not included for last year's corresponding quarter.

Balance Sheet:

Total assets at March 31, 2015 were stable at $2.4 billion, compared with the linked quarter at $2.3 billion, with lower cash balances offset by higher loans outstanding. On a year over year basis, total assets increased from $1.4 billion at March 31, 2014 mainly due to the HFB acquisition.

Cash and cash equivalents at March 31, 2015 were $59.8 million compared to $83.1 million at December 31, 2014, as cash was utilized to fund loan growth. Investment securities classified as available-for-sale and held-to-maturity were stable at $466.3 million at March 31, 2015, as compared to $472.5 million at December 31, 2014. Securities are up year over year mainly as a result of the HFB acquisition. Similarly, on March 31, 2015, goodwill and deferred tax assets were stable at $78.6 million and $62.6 million, respectively, as compared to $80.1 million and $66.1 million, respectively, for the linked quarter. Higher balances in these asset categories on a year over year basis resulted from purchase accounting related to the HFB acquisition.

Gross loans at March 31, 2015 were $1.6 billion, compared to $1.5 billion at December 31, 2014. Organic loan growth for the first quarter of 2015 was approximately $33.7 million, or 2.3% for the quarter (9.2% annualized). Growth was concentrated in CRE, construction, and consumer residential loans. The latter included both retained and acquired first lien adjustable rate mortgages (ARMs). Strategically, the Bank prioritized expansion of its ARM portfolio to further diversify its overall loan portfolio by geography and loan type. Commercial and industrial loans were flat, with organic growth being offset by a modest decline in the shared national credit portfolio. The Company's loan to deposit ratio improved to 76.8% as compared to 74.1% on a linked quarter basis. The Company has identified the improvement of this ratio as a key priority in 2015 after experiencing a dip resulting from the HFB acquisition. As of March 31, 2015, gross loans were up $0.6 billion, compared to the year ago period owing to originated loan portfolio growth as well as the inclusion of HFB acquired loans.

Total deposits were seasonally stable at $2.0 billion at March 31, 2015 as compared to the linked quarter. Non-interest bearing accounts increased by $58.1 million, or 9.4% on a linked quarter basis, but were partially offset by runoff in higher priced CDs acquired with the HFB acquisition. This resulted in an overall cost of funds at 0.11% for the quarter as compared to 0.13% in the linked quarter and 0.13% for the year ago quarter.

Total stockholders' equity at March 31, 2015 was $322.0 million compared to $315.5 million at December 31, 2014. The increase was predominately due to first quarter net income. Tangible common stockholders' equity2 was $235.9 million at March 31, 2015 and $227.7 million at December 31, 2014. The common stockholders' equity ratio to total assets and tangible common stockholders' equity ratio to total assets3 were 13.51% and 9.90% at March 31, 2015, respectively, and 13.48% and 9.73% at December 31, 2014, respectively.

At March 31, 2015, the Bank was considered "well capitalized" for regulatory purposes with the following ratios: Tier 1 leverage ratio of 8.56%; Common Equity Tier-1 risk-weighted ratio of 10.55%; Total tier-1 equity to risk-weighted assets of 10.55%; and total capital to risk-weighted assets of 11.82%. The minimum capital requirements to be considered "well capitalized" under the Basel III rules are 5.00%; 6.50%; 8.00%; and 10.00%, respectively.

Income Statement:

For the quarter ended March 31, 2015, net income was $5.1 million, or $0.07 per share, up 1.5% compared to the linked quarter net income of $5.0 million, or $0.07 per share, and compared to $0.9 million, or $0.02 per share, in the first quarter of 2014. The first quarter 2015 results were benefitted by a $2.0 million credit (pre-tax) to the provision for loan losses arising from the remediation of an outstanding credit that had previously been fully written off. In addition, the Company recorded a gain on disposition of decommissioned branches of approximately $0.7 million (pre-tax), similar to the gain that occurred in the prior quarter. Disposition of overlap offices arising from the HFB acquisition is largely complete. These items were partially offset by certain transitory expense items aggregating $0.6 million (pre-tax).

Total interest income was $19.5 million for first quarter of 2015 as compared to $19.7 million in the linked quarter and $12.1 million in the first quarter of 2014. The increase over the first quarter of 2014 was primarily related to inclusion of earnings on assets acquired in the HFB acquisition for the first quarter of 2015.

Total interest expense for the first quarter of 2015 was $0.5 million, compared to $0.7 million in the linked quarter and $0.4 million for the first quarter of 2014. The increase in the first quarter of 2015 over the first quarter of 2014 was primarily the result of the inclusion of expenses related to deposits acquired in the HFB acquisition.

Net interest income was $19.0 million for the first quarter of 2015, stable as compared to the $19.1 million for the linked quarter.

The net interest margin ("NIM") for the first quarter of 2015 improved to 3.74% compared to 3.68% for the linked quarter and 3.83% for the first quarter of 2014. The improvement from the linked quarter relates primarily to an increase in loans as a percent of earning assets for the period. Accretion of acquisition-related discounts/premiums was comparable between the periods. NIM in the first quarter of 2014 was higher than in the first quarter of 2015 because of the impact of a lower loan-to-deposit ratio of acquired HFB earning assets.

The provision for loan losses was credited $2.0 million (pre-tax) arising from the remediation of an outstanding B note that had previously been written off. In the aftermath of the 2008 recession, the Company had restructured certain adversely risk rated loans into A/B notes, with the B notes fully written off. In certain circumstances, the remediation of other such loans in the future may also result in a similar credit to the provision.

Non-interest income for the first quarter of 2015 was $6.1 million compared to $6.5 million in the linked quarter and $3.4 million for the first quarter of 2014. Both the current and linked quarter included gain on sale of previously decommissioned branches at approximately $0.7 million. The linked quarter decline was mainly due to lower volume of Small Business Administration loan sales.

Non-interest expense in the first quarter of 2015 was $18.8 million compared to $17.5 million in the linked quarter due to several factors. While base salaries were stable, payroll taxes and incentive accruals were higher for the period. In addition, certain transitory expense items aggregating $0.6 million (pre-tax) were recorded. These include costs to transition to a paid time off employee benefit program, the write off of remaining lease expense on an abandoned operations center and expense related to the consolidation of imaging platforms.

The income tax provision for first quarter of 2015 was $3.1 million, representing a 38.1% effective tax rate for the period, slightly lower than statutory due to the impact of permanent differences.

Asset Quality

Credit quality metrics were solid, with a continuing trend toward lower loan delinquencies and non-performing asset ratios. The Bank has recorded net loan recoveries in each of the periods since the HFB acquisition closed in the second quarter of 2014. The ratio of loan loss reserve to total loans was stable at 1.48% as of March 31, 2015.

At March 31, 2015, delinquent loans were 0.17% of the loan portfolio. This compares to 0.27% as of December 31, 2014 and 0.33% as of March 31, 2014. Net loan recoveries totaled $3.2 million for the first quarter of 2015 compared to net recoveries of $0.7 million and $0.9 million for the linked quarter and first quarter of 2014, respectively.

Non-performing assets as a percentage of total assets was 0.53% at March 31, 2015, as compared to 0.64% at the end of the linked quarter and 0.65% a year ago.

Acquired loans are recorded at fair value with no allowance for loan and lease losses brought forward in accordance with purchase accounting principles. The net fair value adjustment to acquired loans from the HFB acquisition was $6.0 million, consisting of an interest rate and a credit mark which will be accreted over the life of the loans (approximately 10 years).

Conference Call

As previously announced, a conference call and webcast discussing the first quarter 2015 results will be held today, May 4, 2015 at 2:00 p.m. Pacific Time (5:00 p.m. Eastern Time). Shareholders, analysts and other interested parties are invited to join the webcast by registering at http://public.viavid.com/index.php?id=114213 or the live conference call by dialing [phone] prior to 2:00 p.m. Pacific Time.

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 39 branches in Central, Southern and Northwest Oregon, as well as in the greater Boise/Treasure Valley, Idaho area. 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 www.botc.com.

http://www.prnewswire.com/news-releases/cascade-bancorp-reports-first-quarter-2015-net-income-of-51-million-or-007-per-share-and-strong-loan-growth-during-the-period-300076330.html

[Enterprising Investor]

Cascade Bancorp Reports Fourth Quarter 2014 Net Income Of $5.0 Million, Or $0.07 Per Share, Up 107% Compared To The Prior Quarter (1/29/15)

BEND, Ore., Jan. 29, 2015 /PRNewswire/ -- Cascade Bancorp (NASDAQ: CACB) ("Company" or "Cascade"), the holding company for Bank of the Cascades ("Bank"), today announced its financial results for the three months and full year ended December 31, 2014.

2014 Financial Highlights

For the Fourth Quarter Ended December 31, 2014:

•Net income of $5.0 million, or $0.07 per share, up 107.2% compared to the third quarter of 2014 ("linked quarter"); the current quarter included approximately $0.01 per share in gain on the sale of decommissioned branches.

•Return on average assets ("ROAA") improved to 0.84% from 0.41% in the linked quarter.

•Return on equity ("ROE") improved to 6.41% from 3.12% in the linked quarter.

•Net interest margin ("NIM") improved to 3.68% from 3.63% in the linked quarter.

•Loan growth of 8.3% (annualized) for the period.

•Credit quality strong; allowance for loan and lease losses ("ALLL") at 1.51% of loans, including net recoveries for consecutive quarters; and non-performing assets ("NPAs") at 0.64%.

•Total deposits stable with 53.3% in checking balances and 0.13% cost of funds.

•Efficiency ratio1 at 68.6%, improved from 81.8% in the linked quarter.

For the Year Ended December 31, 2014:

•Net income of $3.7 million, or $0.06 per share, which includes significant non-recurring costs related to the acquisition of Home Federal Bancorp ("HFB").

•Net loans of $1.5 billion, an increase of 50.9% compared to the year prior mainly due to the HFB acquisition.

•Total deposits of $2.0 billion, up 69.8% compared to the year prior mainly due to the HFB acquisition.

•Credit quality strong with NPAs at 0.64% of total assets at December 31, 2014 compared to 0.81% at December 31, 2013. Net recoveries for 2014 were $1.2 million, as compared to net charge offs of $7.4 million in 2013.

•At December 31, 2014 stockholders' equity at $315.5 million compared to $188.7 million at December 31, 2013.

•Total common equity ratio to total assets and tangible common
equity ratio to total assets2 of 13.48% and 9.73% at December 31, 2014 and 13.42% and 13.38% at December 31, 2013, respectively.

"We are very pleased with our significant progress in 2014, the catalyst of which was our successful acquisition of Home Federal Bank that closed just seven short months ago. The success of bringing these two strong institutions together is a tribute to the professionalism and commitment of the now combined Cascade banking team," commented Terry Zink, President and Chief Executive Officer of Cascade. "Since the merger, our team has grown both loans and deposits while expanding our suite of banking services for all customers, including mobile banking. The team's success is further underscored by our fourth quarter earnings of $5.0 million, which is more than double the prior quarter and quadruple year ago levels."

Mr. Zink continued, "We are also energized by our momentum in growing both loans and deposits, especially with the tailwind of an improving economy within our footprint in Oregon and Idaho. We are enthusiastic with the prospect of continued success in 2015 as we execute upon our stated goal of delivering financial returns above peer bank levels. In addition, we continue to be proactive in working to expand our scale and footprint to further enhance franchise value."

Financial Summary

The sequential improvement in the fourth quarter results is attributable to increased net interest income arising from higher average loan balances, as well as linked quarter growth in non-interest income and a reduction in non-interest expense levels. Non-interest income was up 17.0% on a linked quarter basis mainly because of an increase in the Company's Small Business Administration ("SBA") lending revenue and a gain on sale of previously decommissioned branches ($0.7 million, pre-tax). Non-interest expense in the fourth quarter of 2014 was down 11.1% compared to the linked quarter mainly owing to favorable trends in human resource and marketing related expenses. This improvement was expected given that the linked quarter included $1.3 million in non-recurring costs mainly related to the May 16, 2014 acquisition of HFB.

For the year ended December 31, 2014, net income was $3.7 million, or $0.06 per share, which included significant non-recurring costs related to the HFB acquisition. In comparison, net income for the year ended December 31, 2013 was $50.8 million, or $1.08 per share, which was the result of the Company's reversal of a full valuation allowance of $50.1 million in the Company's deferred tax asset ("DTA") in the second quarter of 2013.

Total loans at December 31, 2014 were $1.5 billion, up 2.1% (or 8.3% annualized) as compared to September 30, 2014. Loan growth for the fourth quarter of 2014 was concentrated in residential and construction portfolios, with commercial and industrial ("C&I") flat. Total deposits at December 31, 2014 were steady at $2.0 billion with an average cost of funds at 0.13%, similar to the linked quarter. Average deposits during the fourth quarter of 2014 were up $15.8 million, or 3.1% annualized, on a linked quarter basis and checking account balances represented 53.3% of total deposits at December 31, 2014.

Detailed Financial Review

On May 16, 2014, the Company completed its acquisition of HFB resulting in a $2.3 billion banking franchise with top community bank market share in growth markets of Oregon and Idaho. With the acquisition of HFB, as of December 31, 2014, total deposits increased 69.8% from December 31, 2013 to $2.0 billion with cost of deposits of 0.13%. As of December 31, 2014, 53.3% of total deposits were in checking account balances. Gross loans increased 49.8% from December 31, 2013 to $1.5 billion as of December 31, 2014, inclusive of the acquired HFB loans.

The financial statements as of December 31, 2014 are inclusive of purchase accounting adjustments to HFB assets and liabilities as of the acquisition date. The financial results for the fourth quarter and year ended December 31, 2014 include HFB income and expense since the acquisition date.

The year-over-year comparative changes described below arise mainly from the benefits and costs related to the HFB acquisition.

Balance sheet:

Total assets at December 31, 2014 were $2.3 billion, compared with $1.4 billion at December 31, 2013. The increase from year end 2013 mainly reflects the $945.3 million in total assets at fair value acquired in the HFB acquisition.

Cash and cash equivalents at December 31, 2014 were $83.1 million compared to $81.8 million at December 31, 2013. Investment securities classified as available-for-sale and held-to-maturity were $472.5 million at December 31, 2014 as compared to $195.8 million at December 31, 2013. The increase in securities was mainly the result of the acquisition of HFB.

Goodwill recorded in connection with the HFB acquisition totaled $80.1 million. There was no goodwill in prior periods. The net DTA was $66.1 million at December 31, 2014 compared to $50.1 million at December 31, 2013.

Net loans at December 31, 2014 were $1.5 billion, which includes HFB acquired loans. Net loans at the end of 2014 were up 50.9% compared to December 31, 2013. The Company had a loan/deposit ratio of 74.1% as of December 31, 2014. Cascade intends to opportunistically redeploy excess liquidity into organic loans and certain wholesale assets over the coming quarters to improve its loan/deposit ratio and its overall yield on earning asset. The C&I loan portfolio was $368.5 million at December 31, 2014 compared to $254.2 million at December 31, 2013 and includes Cascade's shared national credit portfolio of floating rate participations that have been acquired with the strategic aim of diversifying credit risk while improving the Company's interest rate risk profile.

Total deposits were $2.0 billion at December 31, 2014, which includes the addition of $760.6 million of HFB acquired deposits in the second quarter of 2014. The December 31, 2014 deposits represent a 69.8% increase over the balance at December 31, 2013.

Total stockholders' equity at December 31, 2014 was $315.5 million compared to $188.7 million at December 31, 2013. The increase was predominately due to the effect of the HFB acquisition. Tangible capital3 was $227.7 million at December 31, 2014 and $188.2 million at December 31, 2013. The total common equity ratio to total assets and tangible common equity ratio2 to total assets were 13.48% and 9.73% at December 31, 2014 and 13.42% and 13.38% at December 31, 2013, respectively. At December 31, 2014, the Bank's estimated regulatory ratios exceeded those required to be designated "well-capitalized" with Tier 1 leverage, Tier 1 risk-based, and Total risk-based capital regulatory ratios of 7.51%, 9.73% and 10.98%, respectively. These ratios are lower than the prior year because of the inclusion of the acquired HFB assets and the effects of purchase accounting on regulatory ratios.

Income Statement:

Net interest income was $19.1 million for the fourth quarter of 2014, up 2.7% (or 10.6% annualized) as compared to $18.6 million for the linked quarter. This increase related to an increase in average loan balances between the quarters from $1.4 billion to $1.5 billion in third and fourth quarters of 2014, respectively. Net interest income in the fourth quarter of 2013 did not include the acquisition of HFB. For the full year of 2014, net interest income was $65.1 million as compared to $48.2 million for the full year of 2013, mainly due to the inclusion of HFB since the acquisition date in May 2014. There was no provision for loan losses during the reporting periods.

Total interest income was $19.8 million for fourth quarter of 2014 as compared to $19.3 million in the linked quarter and $13.5 million in the fourth quarter of 2013. The comparative increase was primarily related to inclusion of earnings on assets acquired in the HFB acquisition for the full fourth quarter of 2014. Total interest income was $67.4 million for the full year of 2014 as compared to $51.0 million for the full year of 2013. The increase over the prior year was mainly due to the inclusion of HFB since the acquisition date in 2014.

Total interest expense for the fourth quarter of 2014 was $0.7 million, comparable to the linked quarter, and $0.4 million for the fourth quarter of 2013. The increase in the fourth quarter of 2014 over the fourth quarter of 2013 was primarily the result of the inclusion of expenses related to deposits acquired from HFB. Total interest expense for the full year 2014 was $2.3 million as compared to $2.8 million for the full year 2013 resulting from ongoing low market interest rates.

The NIM for the fourth quarter of 2014 was 3.68% compared to 3.63% for the linked quarter. The improvement relates primarily to the increase in net interest income arising from higher average loans and lower cash balances. Accretion of acquisition related discounts/premiums was comparable between the periods. NIM for the fourth quarter and full year 2013 were 4.11% and 3.90%, respectively. NIM in these periods was higher than in the fourth quarter and full year 2014 due to increased lower yielding investment securities acquired from HFB.

Non-interest income for the fourth quarter of 2014 was $6.5 million compared to $5.5 million in the linked quarter and $3.9 million for the fourth quarter of 2013. The current quarter improvement relates to the sale of previously decommissioned branches ($0.7 million, pre-tax). In addition, SBA revenues were higher in the current quarter. Non-interest income for the full year 2014 was $20.2 million compared to $14.5 million for the full year 2013. Year-over-year increases relate to the inclusion of revenues arising from the HFB acquisition, as well as improvement in customer swap, card revenue and service charges.

Non-interest expense for the fourth quarter of 2014 was $17.5 million compared to $19.7 million for the linked quarter and $14.8 million for the fourth quarter of 2013. The linked quarter improvement was in part related to the fact that the Company did not have any acquisition-related or one-time expenses in the fourth quarter, whereas such costs totaled $1.3 million (pre-tax) in the linked quarter. Non-interest expense for the full year 2014 was $81.3 million as compared to $61.0 million for the full year 2013. 2014 included expenses of operating the combined institution, as well as significant acquisition-related and other one-time expenses of $14.5 million (pre-tax).

The income tax provision for fourth quarter of 2014 was $3.0 million. This represents a 37.2% tax rate for the period and includes final HFB and other year-end tax adjustments. The income tax provision for the full year 2014 was $0.2 million, which equals a 4.5% effective tax rate. The effective tax rate differs from the statutory rates due primarily to an additional $1.0 million in tax from disallowed merger-related costs and $1.7 million tax reduction from revaluation of net deferred tax assets using maximum statutory rates. Other differences to the effective tax rate were related to normal recurring permanent differences and tax credits. The Company's 2015 tax rate is expected to approximate its 39.5% statutory rate.

Asset Quality

Credit quality metrics continued to be strong, with successive periods of lower loan delinquencies and non-performing asset ratios. The bank has recorded net loan recoveries in each of the periods since the HFB acquisition closed in the second quarter of 2014, resulting in a 1.51% loan loss reserve to total loans ratio as of December 31, 2014.

At December 31, 2014, delinquent loans were 0.27% of the loan portfolio, inclusive of HFB delinquencies. This compares to 0.34% as of September 30, 2014 and 0.29% for the year ended December 31, 2013. Net loan recoveries totaled $0.7 million for the fourth quarter of 2014 compared to net charge-offs of $0.8 million for the fourth quarter of 2013. Year to date recoveries were $1.2 million for 2014 compared to net charge-offs of $7.4 million for 2013.

Non-performing assets as a percentage of total assets was 0.64% at December 31, 2014, as compared to 0.74% at the end of the linked quarter and 0.81% a year ago.

The Company made no provision for loan losses as management believes the reserve for loan losses of $22.1 million at December 31, 2014 is adequate.

Acquired loans are recorded at fair value with no allowance for loan losses brought forward in accordance with purchase accounting principles. The net fair value adjustment to acquired loans from the HFB acquisition was $6.0 million, consisting of an interest rate and a credit mark which will be accreted over the life of the loans (approximately 10 years).

Conference Call

As previously announced, a conference call and webcast discussing the fourth quarter and year-end 2014 results will be held today, January 29, 2015 at 7:00 a.m. Pacific Time (10:00 a.m. Eastern Time). Shareholders, analysts and other interested parties are invited to join the webcast by registering at https://www.webcaster4.com/Webcast/Page/668/7048 or the live conference call by dialing [phone] prior to 7:00 a.m. Pacific Time.

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 40 branches in Central, Southern and Northwest Oregon, as well as in the greater Boise/Treasure Valley, Idaho area. 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 www.botc.com.

http://www.prnewswire.com/news-releases/cascade-bancorp-reports-fourth-quarter-2014-net-income-of-50-million-or-007-per-share-up-107-compared-to-the-prior-quarter-300027432.html

[Enterprising Investor]

Cascade Bancorp Reports Third Quarter 2014 Financial Results (10/28/14)

BEND, Ore., Oct. 28, 2014 /PRNewswire/ -- Cascade Bancorp (NASDAQ: CACB) ("Company" or "Cascade"), the holding company for Bank of the Cascades ("Bank"), today announced its financial results for the third quarter of 2014.

The Company reported net income for the third quarter of 2014 of $2.4 million, or $0.03 per share. Excluding approximately $1.3 million in acquisition and one-time expenses (pretax) as well as a non-recurring tax provision true up expense of $0.4 million, adjusted earnings1 would have been $3.6 million, or $0.05 per share for the quarter. This compares with a net loss of $4.7 million, or $0.08 per share, in the preceding quarter which included $12.3 million in costs (pretax) related to the May 16, 2014 acquisition of Home Federal Bancorp, Inc. ("HFB") and one-time expenses. Since the Company's acquisition of HFB was completed during the second quarter of 2014, revenue and expenses arising from HFB's previous operations have been included with the Company's results for the full third quarter of 2014, while the preceding quarter included results from former HFB operations for approximately one-half of the quarter. Net income for the third quarter a year ago was $1.5 million, or $0.03 per share.

"With the completion of our successful integration of HFB, our full focus is directed toward capitalizing on our strong market share in growth markets of Oregon and Idaho. Cascade is built upon an enviable low cost deposit franchise, and our goal is to increase revenues by growing loans at a pace well above peer banks," commented Terry Zink, President and Chief Executive Officer of Cascade Bancorp. "Indicative of this opportunity is that our loan to deposit ratio is 73.8% at September 30, 2014. We believe this suggests Cascade has significant capacity to grow our lending book in support of our customers in Oregon and Idaho, and to build toward our goal of achieving leading returns in the region."

For the quarter ended September 30, 2014, total deposits increased to $2.0 billion, or 2.3%, and total loans increased to $1.4 billion, or 4.9%, as compared to June 30, 2014. Deposit growth was primarily attributable to organic growth combined with strong retention of former HFB customers, underscoring the success of the HFB acquisition and customer system conversion activities completed in the prior quarter. Loan growth was largely attributable to the investment of excess liquidity into floating rate shared national credits. These assets are part of Cascade's strategy to moderate duration risk in the combined balance sheet and better position the bank for an eventual increase in market interest rates.

On May 16, 2014 the Company completed its acquisition of HFB resulting in a $2.3 billion banking franchise with top community bank market share in growth markets of Oregon and Idaho. With the inclusion of HFB, as of September 30, 2014, total deposits increased 70.2% from December 31, 2013 to $2.0 billion with cost of deposits under 0.15%. As of September 30, 2014, 53.6% of total deposits are in checking account balances. Gross loans increased 47.2% from December 31, 2013 to $1.5 billion as of September 30, 2014, inclusive of HFB loans.

The financial statements as of September 30, 2014 are inclusive of purchase accounting adjustments to HFB assets and liabilities as of the acquisition date. The financial results for the third quarter of 2014 include HFB income and expense since the acquisition date. The comparative changes described below arise mainly from the benefits and costs related to the HFB acquisition.

Third Quarter 2014 Financial Highlights

•Net income for the third quarter of 2014 was $2.4 million, or $0.03 per share, as compared to net income of $1.5 million, or $0.03 per share for the third quarter of 2013. Earnings for the third quarter of 2014 included acquisition related and one-time expenses (pretax), as well as a non-recurring tax true up expense.

•At September 30, 2014 stockholders' equity increased to $308.4 million with the acquisition of HFB, including purchase accounting adjustments. This compares to $188.7 million at December 31, 2013.

•The total common equity ratio to total assets and tangible common equity ratio to total assets2 were 13.20% and 9.58% at September 30, 2014 and 13.42% and 13.38% at December 31, 2013, respectively.

•Net loans at September 30, 2014 totaled $1.4 billion, an increase of 48.3% compared to December 31, 2013.

•Total deposits as of September 30, 2014 were $2.0 billion, up 70.2% compared to December 31, 2013.

•Net interest margin ("NIM") for the third quarter of 2014 was 3.63% compared to 3.98% in the second quarter of 2014 and 3.81% in the third quarter of 2013. The decline was mainly due to the high level of liquidity maintained during the quarter, which is pending prospective deployment to loans and other earning assets.

•Credit quality was strong with non-performing assets ("NPAs") at 0.74% of total assets at September 30, 2014 compared to 0.88% at September 30, 2013. Net recoveries for the third quarter of 2014 were $0.9 million, as compared to net charge offs of $1.0 million in the third quarter of 2013.

Financial Review

Total assets at September 30, 2014 were $2.3 billion, compared with $1.4 billion at December 31, 2013. The increase from year-end 2013 mainly reflects the $945.3 million in tangible net assets at fair value acquired in the HFB acquisition.

Cash and cash equivalents at September 30, 2014 were $137.3 million compared to $81.8 million at December 31, 2013. The increased liquidity at September 30, 2014 as compared to year-end 2013 was the result of the acquisition of HFB, and includes the effect of a post-closing sale of certain long-duration HFB investment securities. Cascade intends to opportunistically redeploy its increased liquidity into organic loans and certain wholesale assets over the next several quarters. Cascade's strategic aim is to moderate duration risk in the combined balance sheet by replacing the longest duration HFB investment securities with a combination of floating and adjustable-rate assets. Investment securities classified as available-for-sale and held-to-maturity were $445.2 million at September 30, 2014 as compared to $195.8 million at December 31, 2013 and $201.4 million at September 30, 2013. The increase in investment securities classified as available-for-sale and held-to-maturity at September 30, 2014 was primarily the result of the HFB acquisition.

Goodwill recorded in connection with HFB acquisition totaled $76.7 million. There was no goodwill in prior periods. The deferred tax asset is $69.3 million at September 30, 2014 compared to $50.1 million at December 31, 2013.

Total net loans at September 30, 2014 were $1.4 billion which includes HFB's acquired loans. Net loans at the end of the third quarter of 2014 are up 48.3% compared to December 31, 2013 and 57.5% on a year-over-year basis. The commercial and industrial loan portfolio was $372.5 million at September 30, 2014 compared to $254.2 million at December 31, 2013 and $211.2 million a year earlier and includes Cascade's shared national credit portfolio of floating rate participations that have been acquired with the strategic aim of diversifying credit risk while improving the Company's interest rate risk profile.

Total deposits were $2.0 billion at September 30, 2014, which includes the addition of $760.6 million of HFB acquired deposits in the second quarter of 2014. The September 30, 2014 deposits represent a 70.2% increase over the balance at December 31, 2013 and a 66.1% increase on a year-over-year basis.

Total stockholders' equity at September 30, 2014 was $308.4 million compared to $188.7 million at December 31, 2013. The increase was predominately due to the effect of HFB acquisition. Tangible capital3 was $223.8 million at September 30, 2014 and $188.2 million at December 31, 2013. The total common equity ratio to total assets and tangible common equity ratio2 to total assets were 13.20% and 9.58% at September 30, 2014 and 13.42% and 13.38% at December 31, 2013, respectively. At September 30, 2014, the Bank's regulatory ratios exceeded those required to be designated "well-capitalized" with Tier 1 leverage, Tier 1 risk-based, and Total risk-based capital regulatory ratios of 7.40%, 9.70% and 10.95%, respectively. These ratios are lower than prior periods because of the inclusion of HFB acquired average assets for the entire third quarter as compared to inclusion for approximately one-half of the prior quarter.

The Company reported net income for the third quarter of 2014 of $2.4 million, or $0.03 per share. This compares to a net loss for the second quarter of 2014 ("linked quarter") of $4.7 million, or $0.08 per share, and net income for the third quarter of 2013 of $1.5 million, or $0.03 per share. The improvement in the third quarter of 2014 over the linked quarter is primarily attributable to the reduction of acquisition-related and one-time expenses, which were $0.5 million and $0.8 million in the third quarter of 2014, respectively, and $9.9 million and $2.4 million in the linked quarter, respectively. Acquisition and one-time costs in the third quarter of 2014 were mainly human resource, professional service, property and equipment and IT/card related. The third quarter of 2014 also included a non-recurring tax provision true up expense of $0.4 million. The improvement in the third quarter of 2014 over third quarter 2013 is primarily the result of the inclusion of earnings on HFB acquired assets.

Net interest income was $18.6 million for the quarter ending September 30, 2014 as compared to $15.7 million for the second quarter of 2014, and to $12.1 million in the third quarter of 2013. The comparative increase was mainly related to inclusion of earnings on assets acquired in the HFB acquisition for the full third quarter of 2014, compared to inclusion for approximately half of the second quarter of 2014.

Total interest income was $19.3 million for the quarter ending September 30, 2014 as compared to $16.2 million in the second quarter of 2014 and $12.5 million in the third quarter of 2013. The comparative increase was primarily related to inclusion of earnings on assets acquired in the HFB acquisition for the full third quarter of 2014.

Total interest expense for the third quarter of 2014 was $0.7 million compared to $0.5 million in the second quarter of 2014 and $0.5 million for the third quarter of 2013. The increase in the third quarter of 2014 over the second quarter of 2014 was primarily the result of the inclusion of expenses related to deposits acquired from HFB for the full third quarter of 2014.

The NIM for the third quarter of 2014 was 3.63%, compared to the linked quarter net interest margin of 3.98%. The decline was mainly due to the high level liquidity maintained during the third quarter, which is pending prospective deployment to loans and other earning assets. Excess liquidity is also a result of the bank's strategy to redeploy long duration HFB investment securities into a combination of floating and adjustable-rate assets. The Company's strategic objective is to moderate duration risk in the combined balance sheet and better position the bank to benefit from rising market interest rates.

Non-interest income for the third quarter 2014 was $5.5 million compared to $4.8 million in the second quarter 2014 and $3.6 million for the third quarter of 2013. This relates mainly to the inclusion of revenues relating to assets acquired in the HFB acquisition for a full quarter, as compared to half of the second quarter 2014, as well as increases in card revenue and service charges.

Non-interest expense for the third quarter 2014 was $19.7 million compared to $30.2 million for the second quarter 2014 and $13.6 million for the third quarter of 2013. The second quarter 2014 included $12.3 million of acquisition related and one-time charges, while the third quarter of 2014 included $1.3 million of such expenses. Operating expenses relating to operations acquired in the HFB acquisition are included for approximately half of the second quarter and for the full third quarter of 2014. On a year-to-date basis, merger related and other one-time expenses total $11.3 million and $3.2 million, respectively.

Asset Quality

Acquired loans are recorded at fair value with no allowance for loan losses brought forward in accordance with purchase accounting principles. The net fair value adjustment to acquired loans from the HFB acquisition was $6.0 million, consisting of an interest rate and a credit mark which will be accreted over the life of the loans (approximately 10 years).

At September 30, 2014, delinquent loans were 0.34% of the loan portfolio, inclusive of HFB delinquencies. This compares to 0.27% as of June 30, 2014 and 0.40% for the year ago period. Net loan recoveries totaled $0.9 million for the third quarter of 2014 compared to net charge-offs of $1.0 million for the third quarter of 2013.

Non-performing assets as a percentage of total assets was 0.74% at September 30, 2014, as compared to 0.80% at the end of the second quarter 2014 and 0.88% a year ago.

The Company made no provision for loan losses as management believes the reserve for loan losses of $21.4 million at September 30, 2014 is adequate.

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 40 branches in Central, Southern and Northwest Oregon, as well as in the greater Boise/Treasure Valley, Idaho area. 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 www.botc.com.

http://www.prnewswire.com/news-releases/cascade-bancorp-reports-third-quarter-2014-financial-results-280687802.html

[norweger1979]

more insider buying activity

http://www.secform4.com/insider-trading/865911.htm

[Enterprising Investor]

Cascade Bancorp Reports Second Quarter 2014 Financial Results (8/14/14)

END, Ore., Aug. 14, 2014 /PRNewswire/ -- Cascade Bancorp, (NASDAQ: CACB) ("Company" or "Cascade") the holding company for Bank of the Cascades ("Bank"), today announced its financial results for the second quarter of 2014.

The Company reported a net loss for the second quarter of 2014 of $4.7 million, or $0.08 per share as compared to net income of $46.4 million or $0.98 per share for the second quarter of 2013. The net loss for the second quarter of 2014 was primarily due to merger-related expenses recorded of $9.9 million related to the acquisition of Home Federal Bancorp, Inc. ("Home") which was completed in the second quarter and other one-time charges. The net income in the second quarter of 2013 was mainly attributable to the release of the Company's valuation allowance on its deferred tax asset ("DTA"). Net income for the first quarter of 2014 was $0.9 million or $0.02 per common share.

On May 16, 2014 the Company completed its acquisition of Home resulting in a $2.3 billion banking franchise with top community bank market share in growth markets of Oregon and Idaho. At June 30, 2014, total deposits increased 66.4% from December 31, 2013 to $1.9 billion with cost of deposits under 0.15%. As of June 30, 2014, 52.1% of total deposits are in checking account balances. Net loans increased 41.0% from December 31, 2013 to $1.4 billion as of June 30, 2014 with the addition of Home loans.

Systems integration was completed on May 27, 2014 which was a main step to enabling the projected right-sizing of the combined branch network and the realization of overhead and operational efficiencies. The combination is expected to significantly enhance future profitability, with improved revenue and cost structure efficiencies. Customer benefits include access to a broader offering including mobile banking, cash management, card services and stronger lending capabilities.

"We are extremely pleased with having both closed and integrated Home Federal Bancorp during the last two weeks of May," commented Terry Zink, President and Chief Executive Officer of Cascade Bancorp. "As anticipated, our second quarter loss resulted from acquisition related charges. While there is still more to do, we expect the third and fourth quarters of 2014 will demonstrate the potential earnings power of the combined banks as we build momentum in loan balances funded by a strong and stable core deposit franchise."

Zink continued, "The cost savings anticipated in the Home transaction are on track and I am also pleased that the loans acquired with Home are satisfactory in terms of credit quality. With the acquisition largely behind us, we look forward to expanding banking relationships with our new Home customers across the Cascade footprint."

The financial statements as of June 30, 2014 are inclusive of purchase accounting adjustments to Home assets and liabilities as of the acquisition date. The financial results for the second quarter of 2014 include Home income and expense for approximately one-half of this quarterly period. The comparative changes described below arise mainly from the benefits and costs related to the Home acquisition.

Second Quarter 2014 Financial Highlights

Including acquisition related expenses, the net loss for the second quarter of 2014 was $4.7 million or $0.08 per share compared to net income of $46.4 million or $0.98 per share for the second quarter of 2013. Acquisition related costs were $9.9 million for the second quarter of 2014 and $10.8 million year-to-date (pretax).

At June 30, 2014 stockholders' equity increased to $306.9 million with the acquisition of Home, including purchase accounting adjustments. This compares to $188.7 million at December 31, 2013.

The total common equity ratio to total assets and tangible common equity ratio to total assets1 were 13.41% and 9.74% at June 30, 2014 and 13.42% and 13.38%, at December 31, 2013, respectively.

Net loans at June 30, 2014 totaled $1.4 billion, an increase of 41.0 % compared to December 31, 2013.

Total deposits as of June 30, 2014 were $1.9 billion up 66.4% compared to December 31, 2013.

Net interest margin ("NIM") for the second quarter of 2014 was 3.98% compared to 3.83% in the first quarter of 2014.

Credit quality improved with non-performing assets ("NPA's") at 0.80% of total assets at June 30, 2014 compared to 1.01% at June 30, 2013. Net charge offs for the second quarter of 2014 were $1.3 million, as compared to $2.9 million in the second quarter of 2013.

Acquisition of Home Federal Bancorp

[table deleted]

Financial Review

Total assets at June 30, 2014 were $2.3 billion, compared with $1.4 billion at December 31, 2013. The increase from year-end 2013 mainly reflects the $946.1 million in tangible net assets at fair value acquired in the Home acquisition.

Cash and cash equivalents at June 30, 2014 were $164.3 million compared to $81.8 million at December 31, 2013. The increased liquidity at June 30, 2014 as compared to year-end 2013 was the result of the acquisition of Home, and includes the effect of a post-closing sale of certain long-duration Home investment securities. Cascade intends to opportunistically redeploy its increased liquidity into organic loans and certain wholesale assets over the balance of the year. Cascade's strategic aim is to reduce duration risk in the combined balance sheet by replacing the longest duration Home investment securities with a combination of floating and adjustable-rate assets. Investment securities classified as available-for-sale and held-to-maturity were $430.8 million at June 30, 2014 as compared to $195.8 million at December 31, 2013 and $218.6 million at June 30, 2013. The increase in investment securities classified as available-for-sale and held-to-maturity at June 30, 2014 was a result of the Home combination.

Goodwill recorded in connection with Home acquisition totaled $75.8 million. There was no goodwill in prior periods. The deferred tax asset is $70.0 million at June 30, 2014 compared to $50.1 million at December 31, 2013.

Total net loans at June 30, 2014 were $1.4 billion which includes Home's acquired loans. Net loans at the end of the second quarter of 2014 are up 41.0% compared to December 31, 2013 and 54.6% on a year-over-year basis. Organic loan growth during the second quarter of 2014 was muted because production was largely offset by the payoff of a top 10 customer loan related to the customer's excess liquidity. The organic loan pipeline at June 30, 2014 was at its strongest level in a year, mainly in commercial and industrial ("C&I") loans and owner-occupied commercial real estate. The C&I loan portfolio was $300.7 million at June 30, 2014 compared to $254.2 million at December 31, 2013 and $197.0 million a year earlier and includes Cascade's shared national credit portfolio of floating rate participations that have been acquired with the strategic aim of diversifying credit risk while improving the Company's interest rate risk profile.

Total deposits were $1.9 billion at June 30, 2014, including $760.6 million of Home acquired deposits, a 66.4% increase over the balance at December 31, 2013 and 75.9% on a year-over-year basis.

Total stockholders' equity at June 30, 2014 was $306.9 million compared to $188.7 million at December 31, 2013. The increase was predominately due to the effect of Home acquisition. Tangible capital2 was $223.0 million at June 30, 2014 and $188.2 million at December 31, 2013. The total common equity ratio to total assets and tangible common equity ratio1 to total assets were 13.41% and 9.74% at June 30, 2014 and 13.42% and 13.38%, at December 31, 2013, respectively.

The Company reported a net loss for the second quarter of 2014 of $4.7 million, or $0.08 per share due primarily to Home acquisition-related expenses of $9.9 million and other one-time charges of $2.4 million. This compares to net income for the first quarter of 2014 ("linked quarter") of $0.9 million or $0.02 per share, and $46.4 million or $0.98 per share in the second quarter of 2013. The linked quarter period included $0.9 million in transaction related expenses related to the acquisition of Home.

Net interest income was $15.7 million for the quarter ending June 30, 2014 as compared to $11.7 million for the first quarter of 2014, and to $11.5 million in the year ago quarter. The comparative increase was related to inclusion of earnings on Home acquired assets for approximately half of the second quarter of 2014.

Total interest income was $16.2 million for the quarter ending June 30, 2014 as compared to $12.1 million in the first quarter of 2014 and $12.4 million in the year ago quarter. The comparative increase was related to inclusion of earnings on Home acquired assets for approximately half of the second quarter of 2014.

Total interest expense for the second quarter of 2014 was $0.5 million compared to $0.4 million in the first quarter of 2014 and $0.9 million for the second quarter of 2013. The increase in the second quarter of 2014 over the first quarter of 2014 was a result of the inclusion of Home deposit expense for approximately half of the second quarter of 2014.

The NIM for the second quarter of 2014 was 3.98%, this compares to the prior quarter net interest margin of 3.83%. As described above, the Company's strategic aim is to moderate duration risk in the combined balance sheet and better position the bank to benefit from rising market interest rates. In part, this strategy will include redeployment of long duration Home investment securities into a combination of floating and adjustable-rate assets. These actions are expected to occur over the next several quarters. Internal forecasts as to the effect of this strategy will be a NIM estimated between 3.65% to 3.75% by the fourth quarter of 2014 (inclusive of discount accretion of fair value marks). Because future interest rates are unpredictable and the execution of the Company's redeployment strategy is uncertain no assurance can be given as to the achievement of the NIM forecast.

Non-interest income for the second quarter 2014 was $4.8 million compared to $3.4 million in the first quarter 2014 and $3.5 million for the second quarter of 2013. This relates mainly to the inclusion of Home revenues for half of the current quarter as well as increased card revenue.

Non-interest expense for the second quarter 2014 was $30.2 million and includes $12.3 million of acquisition related and one-time charges. Acquisition expenses are related to severance, branch consolidation costs, contract termination, disposal of excess equipment, and professional and legal services rendered in connection with the acquisition. Other items include charges related to occupancy and certain incentive plan accruals in the period. Home operating expenses are included for approximately half of the current quarter. Non-interest expense for the first quarter of 2014 was $13.9 million and $19.3 million for the year ago period.

Asset Quality

Acquired loans are recorded at fair value with no allowance for loan losses brought forward in accordance with purchase accounting principles. The net fair value adjustment to acquired loans from the Home acquisition was $6.1 million, consisting of an interest rate and a credit mark which will be accreted over the life of the loans (approximately 10 years).

The Company has determined it will report on a cash basis any potential future benefits and/or costs incurred with respect to Home's remaining Federal Deposit Insurance Commission ("FDIC") loss share receivables (or payables). The remaining benefit and/or cost of the FDIC Agreements are not expected to be material to the Company's financial condition. In the acquired loan portfolio, $53.6 million in loans remain covered loans at June 30, 2014 of which 91.6 % are currently performing. Estimated future losses on acquired covered loans are included in the fair value purchase accounting mark. Home had two acquired loss sharing agreements that the Company now holds, which expire in the third quarter of 2014 and 2015, respectively.

At June 30, 2014, delinquent loans were 0.27% of the loan portfolio, inclusive of Home delinquencies. This compares to 0.33% as of March 31, 2014 and 0.51% for the year ago period. Net loan charge-offs totaled $1.3 million for the second quarter of 2014 compared to $2.9 million for the second quarter of 2013.

Non-performing assets as a percentage of total assets was 0.80% at June 30, 2014, as compared to 0.65% at the end of the first quarter 2014 and 1.01% a year ago. The increase in the current quarter relates to the inclusion of Home non-performing assets, of which 22.1% of current non performing Home loans are subject to FDIC loss sharing agreements.

The Company made no provision for loan losses as management believes the reserve for loan losses of $20.5 million at June 30, 2014 is adequate.

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 40 branches in Central, Southern and Northwest Oregon, as well as in the greater Boise/Treasure Valley, Idaho area. 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 www.botc.com.

http://www.prnewswire.com/news-releases/cascade-bancorp-reports-second-quarter-2014-financial-results-271294791.html

[norweger1979]

call report 6/31/2014

net loss $4,143 Million

note noninterest expense of $14Million+ (merger related, i would think)

https://cdr.ffiec.gov/Public/ViewFacsimileDirect.aspx?ds=call&idType=fdiccert&id=22407&date=06302014

[Enterprising Investor]

Investor Presentation (7/28/14)

http://www.snl.com/Cache/1001189223.PDF?Y=&O=PDF&D=&FID=1001189223&T=&IID=100589

[xrymd]

So that's a yes to the cause of the recent decline. Nice to hear you think its only 30 days. I will starte to nibble soon.

[Enterprising Investor]

It could take about 30 days to clear out.

[xrymd]

Does anyone think the down ward price is due to the new HOME shareholders selling? If so this may last for a few more days/weeks.

Thoughts anyone?

[Enterprising Investor]

Cascade Bancorp Completes Acquisition of Home Federal Bancorp, Inc. (5/19/14)

BEND, Ore., May 19, 2014 /PRNewswire/ -- Cascade Bancorp (NASDAQ: CACB) ("Cascade"), the holding company for Bank of the Cascades ("Bank"), today announced that on May 16, 2014 it completed its previously announced acquisition of Home Federal Bancorp, Inc. (NASDAQ: HOME) ("Home"). The combined company is expected to have assets in excess of $2.3 billion and deposits of $2.0 billion with forty branches serving the Oregon and Boise, Idaho markets.

Terry Zink, President and Chief Executive Officer of Cascade, commented, "I am very excited to welcome the customers and employees of Home Federal to Cascade. This acquisition expands our operational footprint in the Pacific Northwest while also providing revenue and cost synergies to the Bank. We look forward to delivering an expanded line of products and services to meet the financial needs of our local business and personal banking customers as we strive to be the premier community bank in the Pacific Northwest."

Under the terms of the merger agreement, former shareholders of Home Federal Bancorp will receive a fixed exchange ratio of 1.6772 shares of Cascade common stock and $8.43 in cash for each share of Home Federal Bancorp common stock, without interest and less withholding for taxes (and cash in lieu of fractional shares).

Cascade was advised in this transaction by Macquarie Capital, as financial advisor, and Hunton & Williams LLP, as legal counsel. Home was advised by Keefe, Bruyette & Woods, as financial advisor, and Vorys, Sater, Seymour and Pease LLP, as legal counsel.

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 28 branches in Central, Southern and Northwest Oregon, as well as in the greater Boise/Treasure Valley, Idaho area. 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 www.botc.com.

[norweger1979]

Cascade Bancorp 1Q EPS 2c >CACB

Cascade Bancorp 1Q Net $900,000 >CACB

Form 10-Q on May 8, 2014.
First Quarter 2014 Financial Highlights
-- Net income for the first quarter of 2014 was $0.9 million or $0.02 per
diluted share compared to $1.7 million or $0.04 per diluted share for the
first quarter of 2013.

-- Stockholders' equity increased to $190.3 million or $4.00 per share at
March 31, 2014 as compared to $188.7 million or $3.97 per share at
December 31, 2013.

-- Gross loans at March 31, 2014 totaled $1.0 billion, an increase of 14.9%
and 1.1% compared to March 31, 2013 and December 31, 2013, respectively.

-- As of March 31, 2014, substandard loans were reduced by 4.9% to $39.2
million compared to December 31, 2013.

-- Non-performing assets improved to 0.65% of total assets at March 31, 2014
compared to 0.81% at December 31, 2013 and net recoveries for the first
quarter of 2014 were $0.9 million, as compared to net charge-offs of $2.7
million in the first quarter of 2013.

-- Total deposits as of March 31, 2014 decreased $4.7 million or 0.40%
compared to December 31, 2013.

-- Net Interest Margin ("NIM") was 3.83% as of March 31, 2014 compared to
4.11% for the quarter ended December 31, 2013.
Terry Zink, President and Chief Executive Officer of Cascade Bancorp, commented, "The first quarter marked a critical inflection point in Cascades' recent history as we focus our strategy toward becoming a leading Pacific Northwest community bank with strong return metrics." He continued by saying, "Assuming we receive the requisite shareholder approvals, we expect to close our proposed merger with Home Federal Bancorp ("Home Federal") in mid-May."
Mr. Zink went on to say, "Upon the anticipated closing of the merger, we look forward to welcoming Home Federal Bank customers to Bank of the Cascades and realizing the opportunities to enhance efficiencies while delivering expanded services and conveniences."
Greg Newton, Chief Financial Officer, added, "Much of our focus during this quarter was preparation for the merger with Home Federal. We are pleased that our credit quality metrics continued to improve during the quarter with reductions in both substandard loans and non-performing assets, while loans and deposits were stable during our seasonally slower winter quarter." He added, "Also, during this quarter we continued to re-balance the loan portfolio in favor of commercial and industrial loans. This loan type was up $19.3 million or 7.6% from the prior quarter while commercial real estate loans declined $8.3 million or 1.5% during the quarter. This resulted in modest overall loan growth in our seasonally weakest period."

...

[Enterprising Investor]

Arbitrage.

Short interest should generally be ignored for any company involved in a merger with any exchanges of stock.

[norweger1979]

any idea about the growing short interest?

as of 3/31/14 it is up to 1.4Mio short position with avg daily volume below 50k...

arbitrage or hedge position?

[56Chevy]

Pro Forma Combined 2013 EPS detailed as $.78.

This would mean CACB is at the very least a $7.80 bank that Mr. Market has On Sale today for $4.88.

Value found!

Marker: (mid-day)
Cascade Bancorp (CACB)
$ 4.88 up 0.02 (0.41%)
Volume: 3,665

[Enterprising Investor]

Green Equity Investors V, LP ownership will decline to 15.96 percent.

Based on estimated 71,871,915 shares outstanding upon completion of merger.

Controls 11,473,443 shares, up from the 11,468,750 I previously reported.

[Enterprising Investor]

Lightyear Fund II, LP ownership will decline to 15.97 percent.

Based on estimated 71,871,915 shares outstanding upon completion of merger.

Controls 11,481,216 shares, up from the 11,438,500 I previously reported.

[Enterprising Investor]

WL Ross & Co LLC ownership will decline to 15.96 percent.

Based on estimated 71,871,915 shares outstanding upon completion of merger.

[Enterprising Investor]

Pro Forma Combined 2013 EPS detailed as $.78.

[Enterprising Investor]

Former HOME shareholders will own approximately 33.82 percent.

[56Chevy]

Votes set for bank merger

Cascade Bancorp, Home Federal Bancorp shareholders to vote

Published Apr 12, 2014 at 12:01AM

Cascade Bancorp and Home Federal Bancorp announced Friday their respective shareholders will vote May 16 on the banks’ pending merger.

The directors of both Cascade Bancorp, parent company of Bend-based Bank of the Cascades, and Home Federal, based in Nampa, Idaho, agreed in October to merge their banks, a deal estimated to cost Cascade Bancorp $265.7 million in cash and stock. The merger would double Cascades’ assets to about $2.5 billion.

The U.S. Security and Exchange Commission reviewed the prospectus put before shareholders and declared it effective, said Cascades Bancorp President and CEO Terry Zink. The SEC does not approve or disapprove the merger, only review the filing to ensure the banks make the necessary disclosures.

“Obviously, we’re excited to get this thing closed,” Zink said Friday.

The banks initially expected to complete the merger vote by March 31, but unforeseen circumstances, such as the winter weather, intervened, he said. He said the two banks, if approved by stockholders, would become integrated as planned.

Cascades’ stock closed Friday at $4.87 per share, down 16 cents from the previous day. Home Federal closed Friday at $14.58, down 31 cents.

http://www.bendbulletin.com/home/1979495-151/votes-set-for-bank-merger#

Marker:
Cascade Bancorp (CACB)
$4.86 down -0.05 (-1.02%)
Volume: 17,319

[Pepperoni]

So how does this affect the number of shares in CACB that we presently have?

[Enterprising Investor]

Regulatory and Merger Update (4/16/14)

On April 11, 2014, Cascade Bancorp, an Oregon corporation (“Cascade”), received notice of non-objection from the Federal Reserve Bank of San Francisco (the "Federal Reserve Bank"), acting on delegated authority from the Board of Governors of the Federal Reserve System, to consummate the merger with Home Federal Bancorp, Inc., a Maryland corporation (“Home,” and such merger, the “Merger”), pursuant to the Agreement and Plan of Merger between Cascade and Home, dated as of October 23, 2013 (the “Merger Agreement”), and to thereby acquire Home Federal Bank, a wholly owned subsidiary of Home. The Federal Reserve Bank also waived the filing of a formal application by Cascade for the Merger.

On February 20, 2014, Cascade received regulatory approval from the Federal Deposit Insurance Corporation for Bank of the Cascades, wholly owned subsidiary of Cascade, to merge with Home Federal Bank, with Bank of the Cascades continuing as the surviving entity (the “Bank Merger”).

As Cascade and Bank of the Cascades also received the necessary regulatory approvals for the Merger and the Bank Merger from the Oregon Department of Consumer and Business Services, Division of Finance and Corporate Securities, as well as the Idaho Department of Finance, all regulatory approvals and non-objections required to be obtained prior to the completion of the Merger have now been obtained.

Completion of the Merger remains subject to approval of Home’s shareholders and Cascade’s shareholders, as well as the satisfaction of other customary closing conditions. Assuming such approvals are received and conditions are satisfied, Cascade expects to complete the Merger in May 2014.

http://www.sec.gov/Archives/edgar/data/865911/000086591114000022/0000865911-14-000022-index.htm

[Enterprising Investor]

Bank of the Cascades Announces Expansion in Grants Pass (3/04/14)

• Bank announces May 27 re-opening of branch at Sixth & Savage

• Branches on both north and south sides of town will offer access to service & convenience throughout Grants Pass.

BEND, Ore., February 27, 2014 -- Bank of the Cascades (the “Bank”), today announced plans to expand services to the Grants Pass community and to re-open its branch at Sixth & Savage on the north side of town on May 27, 2014.

The Bank has previously announced the signing of a merger agreement with Home Federal Bancorp (“Home Federal”). Assuming completion of the merger, Bank of the Cascades will become a leading community bank in the Pacific Northwest with over $2.3 billion in assets. For local business and consumers in Grants Pass, that means expanded financial services and credit opportunities, with a continued commitment to delivering the advantages of a local community bank. Upon completion of the merger, the Bank expects to welcome local Home Federal customers to its two locations in Grants Pass.

Larry Helton, BOTC Vice President & Grants Pass Commercial Lender, commented “We listened! Over the past year, customers have shared with us that they regret the previous closing of our branch on the north side of town. Demonstrating that customer convenience matters, we are very happy to respond with this announcement of our intended re-opening.” Helton continued, “Additionally, when our merger with Home Federal is complete, it will be a pleasure to welcome new customers to our branches. Our location at Sixth and Savage is an expanded facility with ample parking and convenient access. Our current location on Union Avenue will remain open and available to those customers who prefer the convenience of a location on the south side of Grants Pass.”

As a community bank, Bank of the Cascades is very proud to offer the advantages of local banking. According to Julie Miller, EVP and Oregon Regional President; “Where you bank really matters. We are a local resource! Customer deposits stay in our communities and are used to fund loans to local businesses which in turn create jobs and directly contributes to economic health.” Miller continued, “We believe in earning our customers’ business with expertise, access and local commitment. As an example, we are proud to offer the services of experienced commercial bankers who live and work here in Grants Pass. It is not a case of traveling to another community for those services. Bankers who know Grants Pass and know commercial banking, are right here delivering commercial credit and cash management services to help local business grow.”

Upon completion of the merger with Home Federal, the Bank also looks forward to offering its new customers the advantages of local mortgage lending, expanded SBA loan opportunities, a variety of consumer & business credit card programs, mobile banking that includes mobile deposit and bill pay, and more.
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 28 branches in Central, Southern and Northwest Oregon, as well as in the greater Boise/Treasure Valley, Idaho area. 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 www.botc.com.

http://www.sec.gov/Archives/edgar/data/865911/000086591114000016/cacb3-2x14x425kfallsexpans.htm

[Enterprising Investor]

Cascade Bancorp Reports Fourth Quarter And Full Year 2013 Financial Results (2/04/14)

BEND, Ore., Feb. 4, 2014 /PRNewswire/ -- Cascade Bancorp, (NASDAQ: CACB) ("Company" or "Cascade") the holding company for Bank of the Cascades ("Bank"), today announced its financial results for the three months and full year ended December 31, 2013.

Fourth Quarter and Full Year 2013 Financial Highlights

•Net income for the fourth quarter of 2013 was $1.2 million or $0.03 per share compared to $1.3 million or $0.03 per share for the fourth quarter of 2012. The results of the fourth quarter of 2013 included expenses of approximately $1.0 million in merger costs related to the previously announced acquisition of Home Federal Bancorp ("Home"), $0.7 million related the Company's annual incentive plan, and a $0.3 million tax adjustment reflecting the expiration of certain tax credits. Partially offsetting these expenses was a recovery of $1.0 million in interest from the payoff of a non-accrual loan.

•Net income for the full year 2013 was $50.8 million or $1.08 per basic share compared to $6.0 million or $0.13 per share for the year 2012. The primary reason for the increase in net income for 2013 was the reversal of a full valuation allowance of $50.1 million in the Company's deferred tax asset ("DTA") in the second quarter of 2013.

•Net Interest Margin ("NIM") was 3.75% for the year ended December 31, 2013 compared to 3.85% for the year ended December 31, 2012.

•Stockholders equity increased to $188.7 million or $3.97 per basic share at December 31, 2013 as compared to $140.8 million or $2.97 per basic share at December 31, 2012 due primarily to the DTA recognition in the second quarter of 2013.

•Gross loans (total loans, less deferred loan fees) at December 31, 2013 were up $138.2 million or 16.1% compared to December 31, 2012.

•At December 31, 2013, substandard loans were reduced by 67.5% to $41.2 million compared to December 31, 2012; non-performing assets improved to 0.81% of total assets compared to 1.94% at December 31, 2012; and 2013 net charge-offs were $7.4 million compared to $17.7 million in 2012.

•Total deposits at December 31, 2013 increased $91.1 million or 8.46% compared to December 31, 2012.

•Tier 1 Capital Leverage Ratio at the Bank rose to at 10.49% at December 31, 2013 compared to 10.42% at December 31, 2012.

Significant Milestones Achieved in 2013

•On October 23, 2013, the Company announced the signing of a merger agreement with Home Federal Bancorp ("Home"), a community bank in the Pacific Northwest with approximately $1 billion in assets which upon closure is expected to unlock significant efficiency and profitability opportunities. Assuming completion of the merger, the Company will become among the largest community banks in the Pacific Northwest1 with over $2.3 billion in assets, hold a top community bank market share in its Central Oregon and Boise Idaho markets, and expand its footprint to include Eugene, Oregon.

•On October 18, 2013 Cascade completed the customer integration of three former branches of American West Bank.

•The Bank implemented mobile banking and mobile bill pay services as well as upgraded its online banking platform to enhance customer convenience and service.

•The Bank achieved strong growth in both loans and deposits.

•The Company substantially completed its priority goal of returning to a strong credit quality profile with improvements in all credit quality related metrics.

1 Defined as headquartered in Washington, Oregon and Idaho with total assets of $10 billion or less.


Terry Zink, President and Chief Executive Officer of Cascade Bancorp commented, "I am pleased to report that 2013 was a remarkable and transformational year for Bank of the Cascades. The Bank cleared its legacy credit quality and regulatory issues, enhanced its capital and achieved solid organic growth. These results were critical to our successful bid for Home announced in October. Our Home merger planning process indicates the closing of the transaction could occur as early as March 2014, and that we will achieve the cost savings and revenue synergy goals that underpin the logic for this combination. While the next several quarters will include normal purchase accounting activity and integration related costs, we remain confident that the financial and quality metrics of the resulting Cascade will compare favorably with the top performing banks in the Pacific Northwest by the fourth quarter of 2014."

Commenting on the fourth quarter of 2013, Mr. Zink added, "During the fourth quarter, we saw a 6.2% growth in our loan portfolio as compared to the previous quarter. Our loans outstanding are now nearly $1.0 billion with continued positive trends in credit quality metrics. At the same time we introduced mobile banking services for our customers and upgraded our online banking services."

Mr. Zink continued, "I also want to comment on the importance of substantially completing our number one strategic priority of returning Cascade's loan portfolio to a condition of sound quality. The Bank has completed a long journey from the depths of the great recession. The Cascade team has worked tirelessly and effectively to clear legacy problems in order to build a strong foundation from which to grow in the future. I am pleased that the achievements of 2013 demonstrate that Cascade is positioned, ready and focused to capitalize on what we believe is an exciting future."

Financial Review

Total assets increased $104.8 million to $1.4 billion at December 31, 2013, as compared to $1.3 billion at December 31, 2012. The increase for the year ended December 31, 2013 as compared to the prior year was driven by $146.2 million growth in total loans outstanding (total loans, including loans held for sale, less deferred loan fees), a decrease in cash and cash equivalents of $31.2 million and a $50.1 million increase in DTA, partially offset by a decrease of $63.1 million in investment securities available-for-sale. The increase in DTA was the result of a second quarter 2013 reversal of its full valuation allowance.

Gross loans outstanding were $994.5 million at December 31, 2013 an increase of $138.2 million as compared to December 31, 2012 gross loan balance of $856.3 million. This growth in gross loans outstanding was largely attributable to local lending including owner-occupied commercial real estate, small business loans and lines, consumer lending, including residential mortgages and increased shared national credits in the commercial and industrial portfolio.

Loan quality continued to improve during 2013 with remediation of special mention and substandard loans. These adversely risk rated loans totaled $85.1 million at December 31, 2013 as compared to $175.6 million at December 31, 2012. Remediation was accomplished through payoffs/pay downs, note sales and/or charge offs related to the restructure of adversely risk rated loans as well as credit upgrades owing to improved obligor cash flows. Non-performing assets as of December 31, 2013 improved to 0.81% of total assets as compared to 1.94% at December 31, 2012. During 2013, management made a $1.0 million provision for loan losses compared to a $1.1 million provision for loan losses in 2012. The reserve for loan losses was at 2.08% of total loans at December 31, 2013. No provision for loan loss was made in the fourth quarter of 2013 or 2012.

Deposit balances increased $91.1 million to $1.2 billion at December 31, 2013 as compared to December 31, 2012 balances of $1.1 billion. The increase is across all deposit categories and relates to expanded customer relationships and a strengthening economy in our market areas.

The Company had $27.0 million of short term FHLB borrowings as of December 31, 2013 compared to $60.0 million in long-term FHLB borrowings at December 31, 2012. The Company pre-paid the $60.0 million of long term borrowings outstanding at December 31, 2012 during the second quarter of 2013, incurring a prepayment penalty of $3.8 million.

Net income for the three months ended December 31, 2013 was $1.2 million or $0.03 per share compared to $1.3 million or $0.03 per share for the fourth quarter of 2012. The results of the fourth quarter of 2013 included approximately $1.0 million in merger costs related to the previously announced Home acquisition, $0.7 million related the Company's annual incentive plan, and a $0.3 million tax adjustment reflecting the expiration of certain state tax credits. Partially offsetting these items was a recovery of $1.0 million in interest from the payoff of a non-accrual loan. Net income for the full year of 2013 was $50.8 million or $1.08 per basic share compared to $6.0 million or $0.13 per share for the year ended 2012. Net income for the year ended 2013 includes a net credit to income tax provision of $50.2 million largely the result of the Company's reversal of its prior DTA allowance. The 2012 income tax provision was $79.0 thousand.

Net interest income was $48.2 million for the full year of 2013, compared to $49.9 million for the full year of 2012. This year-over-year decline in net interest income was largly due to the declining rate environment especially on loans and investments. Net interest income for the three months ended December 31, 2013 was $13.1 million, up $1.0 million from $12.1 million during the three months ended September 30, 2013 and up $1.1 million from $12.0 million for the three months ended December 31, 2012. The quarter-over-quarter increases were mainly due to the full recovery of principal and $1.0 million in interest from repayment of a previously non-accrual loan.

Interest expense for the year ended December 31, 2013 was $2.8 million compared to $5.0 million for the year ended December 31, 2012. This $2.2 million decrease year-over-year was due to the decreased rates on deposits in the low market rate environment as well as prepayment of $60.0 million of FHLB borrowings bearing a weighted average rate of 3.17% during the second quarter of 2013. Interest expense for the three months ended December 31, 2013 was $0.4 million, compared to $0.5 million for the three months ended September 30, 2013 and $1.1 million for the three months ended December 31, 2012.

Non-interest income for the year ended December 31, 2013 was $14.5 million compared to $13.1 million for the year ended December 31, 2012. This increase is primarily related to increased card issuer and merchant service fees, as well as increased other income. Included in other income is the Company's newly initiated SBA and customer interest rate swap products. Non-interest income for the three months ended December 31, 2013, September 30, 2013 and December 31, 2012 were $3.9 million, $3.6 million and $3.5 million, respectively.

Non-interest expense for the year ended December 31, 2013 was $61.0 million, compared to $55.8 million for the year ended December 31, 2012. The $5.2 million increase was primarily related to the $3.8 million prepayment penalty on early payoff of FHLB advances as well approximately $1.0 million in merger costs related to previously announced Home acquisition and $0.7 million related the Company's annual incentive plan. Non-interest expense for the three months ended December 31, 2013 was $14.8 million which included the merger costs discussed above. Non-interest expense for the quarter ending September 30, 2013 and December 31, 2012 were $13.6 million and $14.1 million, respectively.

Conference Call Information

Cascade announced on January 29, 2014 in a Form 8-K filed with the SEC that they will conduct a quarterly earnings conference call Wednesday, February 5, 2014, at 2:00 p.m. PST (5:00 p.m. EST). Terry E. Zink, President and CEO, and Gregory Newton, Executive Vice President and CFO will discuss fourth quarter and year-end 2013 results and provide an update on recent activities. There will be a question-and-answer session following the presentation. Shareholders, analysts and other interested parties are invited to join the call by dialing [phone] a few minutes before 2:00 p.m.

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 28 branches in Central, Southern and Northwest Oregon, as well as in the greater Boise/Treasure Valley, Idaho area. 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 www.botc.com.

http://www.prnewswire.com/news-releases/cascade-bancorp-reports-fourth-quarter-and-full-year-2013-financial-results-243608351.html

[Enterprising Investor]

Branch purchases from AmericanWest Bank completed (10/18/13)

On October 18, 2013, the Bank received required regulatory approval and completed its previously announced purchase of AmericanWest Bank's Klamath Falls, Oregon branch and the assumption of customer relationships, including deposits and selected loans of AmericanWest's Bend and Redmond, Oregon branch offices. In total, the Bank acquired approximately $25.6 million of deposits, paying a deposit premium of 2.00% of the balance of core in-market deposits assumed, and approximately $1.6 million of performing loans.

[Enterprising Investor]

Cascade Bancorp Reports Third Quarter 2013 Financial Results With Continued Revenue Increase (11/13/13)

BEND, Ore., Nov. 12, 2013 /PRNewswire/ -- Cascade Bancorp (NASDAQ: CACB) ("Company" or "Cascade") the holding company for Bank of the Cascades ("Bank"), today announced net income of $1.5 million or $0.03 per share for the quarter ended September 30, 2013. The full details of the Company's third quarter and year-to-date 2013 results were filed with the SEC in the Company's quarterly report on Form 10-Q on November 12, 2013.

Terry Zink, President and Chief Executive Officer of Cascade Bancorp commented, "We are very pleased at our improved earnings in the third quarter as depicted in the 10-Q filing. Underscoring this progress are several milestones that, taken together, are building Cascade into one of the top community banks in Oregon and in the Northwest."

Cascade Bancorp and Home Federal Bancorp Agree to Join Forces to Create a Leading Northwest Community Bank
Cascade announced on October 23, 2013 an agreement to acquire Home Federal Bancorp ("Home Federal") headquartered in Nampa, Idaho. The agreement was unanimously approved by the board of directors of each company and the transaction is expected to be completed in the first quarter of 2014, after obtaining the approval of the shareholders of each company, the necessary regulatory approvals and other customary closing conditions. As a result of the merger, we expect the following:

•the combined bank will have significant scale and market share;

•create a bank with over $2.0 billion in assets, making it the 4th largest community bank in the Pacific Northwest;1

•double Cascade's market share in Boise/Treasure Valley;

•solidify Cascade's #1 market share in Central Oregon;

•expands Cascade's footprint to Eugene, Oregon; and

•unlocks significant efficiency and profitability opportunities.

Zink commented "We are truly pleased to join forces with Home Federal and to provide an opportunity of unique and compelling value to both organizations. The combination of our two outstanding franchises will result in a strong balance sheet and capital base, attractive margins and good earnings potential. For our customers, we believe the banks are culturally compatible and the combined institution will deliver an expanded product offering and stronger lending capacity. For shareholders, we believe the increased scale of the combined company will position our bank to grow organically while also providing additional strength to pursue future acquisition opportunities. Finally, for our communities, we believe our combined organization will provide increased opportunity to deliver the advantages of community banking and to contribute to regional economic vitality."

Bank of the Cascades Completes Acquisition of Klamath Falls, Bend, and Redmond, Oregon AmericanWest Bank Branches
On October 18, 2013, the Bank successfully closed on its previously announced purchase of the Klamath Falls branch of AmericanWest Bank and the customer relationships of the AmericanWest Bank (known locally as PremierWest Bancorp) branches in Bend and Redmond, Oregon. According to Zink, "We are pleased to welcome these new customers to Bank of the Cascades and believe these customers were well satisfied with the transition to Cascade."

Bank of the Cascades Expands Critical Online and Customer Choice Delivery Services
During the third quarter of 2013, the Bank completed a conversion of its online banking services to a new platform providing opportunity for upgraded and additional banking convenience. To complement existing services, the Bank plans to offer mobile banking, mobile deposit and mobile bill pay services in the fourth quarter of 2013. Zink said, "I am excited that our new online services will give customers the best in convenient access to their bank."

Bank of the Cascades Receives Top Philanthropy Recognition
Bank of the Cascades was proud to have been recently recognized by the Portland Business Journal as the number one Oregon small business in Corporate Philanthropy in 2013. Enhancing the quality of life in the communities we serve has long been a core value of the organization and it is our honor to give back to our local non-profit organizations who work to serve the needs of all in our communities.

Financial Highlights of the Third Quarter and period ended September 30, 2013

•Quarter-to-Date Net Income: Net income for the third quarter of 2013 was $1.5 million or $0.03 per share compared to $1.8 million or $0.04 per share for the third quarter of 2012. Third quarter 2013 pretax income was up 15.7% from the year-ago quarter, however current quarter net income includes tax expense of $0.6 million compared to no tax provision in the same quarter a year-ago.

•Stockholders Equity/Book Value Per Share: Stockholders equity increased to $186.9 million or $3.93 per share at September 30, 2013 as compared to $140.8 million or $2.97 per share at December 31, 2012 due to the DTA recognition.

•Loans: Gross loans at September 30, 2013 are up $81.7 million or 9.52% compared to December 31, 2012.

•Deposits: Total deposits at September 30, 2013 are up $119.4 million or 11.09% compared to December 31, 2012.

•Credit Quality: Reserve for loan losses at September 30, 2013 was $21.7 million or 2.28% of loans compared to $27.3 million or 3.17% of loans at December 31, 2012.

•Credit Quality: Non-performing assets were 0.88% of total assets at September 30, 2013 compared to 1.94% at December 31, 2012.

•Credit Quality: Substandard loans were reduced by 61.61% to $48.6 million at September 30, 2013 as compared to December 31, 2012. Net charge-offs year-to-date were $6.6 million in 2013 compared to $9.4 million for the same period of 2012, the decreases were mainly related to resolution of substandard loans.

•Net Interest Margin ("NIM"): NIM was 3.81% at September 30, 2013 compared to 4.11% at December 31, 2012.

Total assets increased to $1.4 billion at September 30, 2013, an increase of $105.3 million from December 31, 2012. The primary cause of this increase was an increase of $91.9 million in total loans outstanding to $950.6 million at September 30, 2013, an increase in cash and cash equivalents of $16.8 million and a $51.5 million increase in DTA, primarily the result of a second quarter 2013 reversal of a full valuation allowance. These increases were offset by a decrease of $57.4 million in investment securities available-for-sale as a result of maturing securities in 2013 as well as increased principal paydowns.

The 10.71% growth in total loans outstanding at September 30, 2013 as compared to December 31, 2012 was attributable to local lending including owner-occupied commercial real estate, small business loans and lines, consumer lending, including residential mortgages and increased shared national credits in the commercial and industrial portfolio.

Loan quality continued to improve during the third quarter of 2013 with remediation of special mention and substandard loans. These adversely risk rated loans totaled $103.3 million at September 30, 2013 as compared to $175.6 million at December 31, 2012. Remediation was accomplished through payoffs/pay downs, note sales and/or charge offs related to the restructure of adversely risk rated loans as well as credit upgrades owing to improved obligor cash flows. Non-performing assets as of September 30, 2013 continued to improve to 0.88% of total assets as compared to 1.94% at December 31, 2012. During the third quarter of 2013, management made no provision for loan losses as management believes that the reserve for loan losses as a percentage of loans at 2.28% remains adequate.

Deposit balances increased $119.4 million to $1.2 billion at September 30, 2013 as compared to December 31, 2012. Approximately 20% of the increase was a result of increases in the deposits of public bank entities as their cash flow needs changed. The remaining increase relates to expanded relationships as the Bank worked with existing customers as well as timing of customers depositing funds into the Bank. The Bank is also making a concerted effort to gain new customers in the markets we serve.

The Company had no FHLB borrowings at September 30, 2013, a decrease of $60.0 million from December 31, 2012. The FHLB borrowings were re-paid during the second quarter of 2013.

Net income for the three months ended September 30, 2013 was $1.5 million or $0.03 per share compared to $1.8 million or $0.04 per share for the three months ended September 30, 2012. Net income for the three months ended September 30, 2013 includes an income tax provision of $0.6 million, while there was no income tax provision made during the three months ended September 30, 2012 as a result of a full DTA valuation.

Net interest income was $12.1 million for the third quarter of 2013, comparable to that of the third quarter of 2012. Net interest income for the nine months ended September 30, 2013 was $35.1 million, down $2.8 million from $37.9 million for the same period in 2012. These year-over-year declines were mainly due to reductions in yields on earnings assets as a result of the continued historically low interest rate market environment. Interest expense for the third quarter of 2013 decreased $0.7 million compared to the third quarter of 2012 and $1.6 million for the nine months ended September 30, 2013 compared to the year ago period. This decrease in interest expense in the three and nine months period ended September 30, 2013 was due to the decreased rates on deposits in the low market rate environment as well as prepayment of $60.0 million of FHLB borrowings bearing a weighted average rate of 3.17% during the second quarter of 2013.

Non-interest income in the third quarter of 2013 was $0.4 million higher than the third quarter of 2012 and non-interest income was $0.9 million higher for the nine months ended September 30, 2013 compared to the same period in 2012. These increases are primarily related to increased card issuer and merchant service fees, as well as increased mortgage banking income. Non-interest expense in the third quarter of 2013 was comparable to non-interest expense for the third quarter of 2012. Non-interest expense for the nine months ended September 30, 2013 was $4.4 million higher than non-interest expense for the nine months ended September 30, 2012. The increase was primarily related to second quarter 2013 increases primarily due to the $3.8 million prepayment penalty of FHLB advances and the $1.3 million recorded for one-time human resource related items including incentive and severance obligations and $0.4 million associated with branch consolidation costs.

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 28 branches in Central, Southern and Northwest Oregon, as well as in the greater Boise/Treasure Valley, Idaho area. 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 www.botc.com.

http://www.prnewswire.com/news-releases/cascade-bancorp-reports-third-quarter-2013-financial-results-with-continued-revenue-increase-231653541.html

[Enterprising Investor]

HOME
USD Home Federal Bancorp Inc New
Last [Tick] $15.30[+]
Change Up $2.49
% Change Up19.44%
Day High $15.79
Day Low $15.03
Previous Close $15.30

[Enterprising Investor]

Acquisition valued at a 40 percent premium.

[Enterprising Investor]

HOME
USD Home Federal Bancorp Inc New
Last [Tick] $12.81[+]
Change Up $0.04
% Change Up 0.31%
Day High $12.84
Day Low $12.65
Previous Close $12.81

[Enterprising Investor]

Another bank merger: Bend's Bank of the Cascades to buy Idaho's Home Federal Bank (10/23/13)

The Bend-based parent of Bank of the Cascades outbid Washington rival Banner Bancorp to buy Idaho's Home Federal Bank. The deal, valued at $265.7 million in cash and stock, will give Bank of Cascades $2.4 billion in assets and 56 branches in Oregon, Washington and Idaho.

It's the third significant bank merger announced or executed in the region this year. Tacoma-based Columbia State Bank completed its acquisition of Lake Oswego-based West Coast Bank in March. Portland-based Umpqua Bank said last month it would merge with Spokane-based Sterling Bank.

Banner Bank's Walla Walla, Wash.-based parent had announced last month it would pay $197 million for Nampa-based Home Federal Bancorp Inc. But last week, Home Federal's board said it had received a better bid from and Cascade Bancorp Inc., Banner said today in a separate press release. Home Federal paid Banner $3 million to get out of the deal, Banner said.

The Cascade-Home Federal merger, which is expected to close spring of 2014, the companies said. Regulators must still approve the deal. Home Federal shareholders will get $120.8 million in cash and 24.3 million shares of Cascade stock.

"We have an overlapping footprint," Cascade Bancorp president and CEO Terry Zink said in an interview with The Oregonian. "There are a lot of synergies between the two. We're going to be able to take out some expenses on both sides."

Cascade moved quickly to bid for Home Federal after the deal with Banner was announced, Zink said. That agreement had a go-shop provision, allowing other banks to top Banner's offer.

Banner had until Tuesday to match Cascade's offer, Banner said.

"We spent a significant amount of time analyzing and structuring the transaction with Home and believe that it would have mutually benefited both organizations," said Mark Grescovich, Banner's president and CEO. "While it is unfortunate that the transaction has been terminated, we will maintain our discipline in evaluating future opportunities.

Zink said the 750 employees across both banks can expect some branch closures and job reductions. Cascade estimates it can cut expenses by 24 percent across both banks, partly by eliminating redundant back office positions, Zink said.

"Both of us were trying to figure out how to meet the new regulatory requirements and continue to grow a profitable bank," Zink said of what led to the merger. "It's difficult."

If approved, the deal will return Bank of the Cascades to the size it was before the financial crisis, he said. The bank nearly failed during the real estate crash, coming under federal and state regulatory orders to rid itself of bad loans. It reduced its assets from more than $2 billion to $1 billion, Zink said.

A $177 million infusion from outside investors and the hiring of Zink, former Fifth Third Bank Chicago president, helped spark the turnaround. Regulators only lifted the order in March.

Home Federal Bancorp shares closed Wednesday on the Nasdaq Stock Market at $12.81, up 4 cents. After the announcement, shares jumped 9 percent in after-hours trading to $13.96.

Cascade's shares closed Wednesday on the Nasdaq at $5.99, up 3 cents.

-- Brent Hunsberger

http://www.oregonlive.com/business/index.ssf/2013/10/another_bank_merger_bends_bank.html

[Enterprising Investor]

Cascade Bancorp And Home Federal Bancorp Agree To Join Forces To Create Premier Northwest Community Bank (10/23/13)

- Transaction will provide significant value to shareholders of both banks

- Acquisition valued at $265.7 million or $17.83 per diluted share as of October 22, 2013

- Combined bank will have significant scale and market share

-- Creates bank with estimated $2.4 billion in assets, 4th largest community bank in the Pacific Northwest[1]

-- Doubles Cascade market share in Boise/Treasure Valley

-- Solidifies Cascade #1 market share in Central Oregon

-- Expands Cascade footprint to Eugene, Oregon market

-- Transaction expected to unlock significant efficiency and profitability improvements

-- Resulting company expected to have strong capital, excellent credit quality and strong earnings prospects

BEND, Ore., Oct. 23, 2013 /PRNewswire/ -- Cascade Bancorp (NASDAQ: CACB) ("Cascade") the holding company for Bank of the Cascades and Home Federal Bancorp, Inc. (NASDAQ: HOME) ("Home Federal"), the holding company for Home Federal Bank, today announced the signing of a definitive agreement and plan of merger whereby Cascade and Home Federal will merge in a transaction (the "Transaction") valued at approximately $265.7 million, payable in a mix of cash and Cascade common stock to Home Federal's stockholders. The combined company will have approximately $2.4 billion in assets, serving communities across Oregon and Idaho.

The Transaction is expected to create a premier Pacific Northwest bank with scale in high growth markets while simultaneously unlocking earnings and efficiency improvements. A hallmark of the combination between Cascade and Home Federal is expected to be its strong core deposit base, which will likely rank among the top banks in the nation. Importantly, the Transaction provides the opportunity to right-size the branch distribution networks and infrastructure of the combined bank.

The boards of directors of Cascade and Home Federal unanimously approved the Transaction, which is subject to regulatory approval, approval by the shareholders of Cascade and Home Federal, and other customary conditions of closing. The Transaction provides for the payment to Home Federal shareholders and option holders of $120.8 million in cash (subject to adjustment based on closing capital and other adjustments described in the definitive merger agreement) and 24,309,066 shares of Cascade common stock, subject to adjustment described in the definitive merger agreement. Based on the closing price of $5.96 for Cascade shares on October 22, 2013, the transaction would have an aggregate value of $265.7 million. Cascade expects the Transaction to be immediately accretive to its earnings per share, excluding one-time transaction expenses. Upon closing of the Transaction, which is anticipated to take place in the first quarter of 2014, Home Federal will be merged into Cascade and Home Federal Bank will be merged into Bank of the Cascades. As of June 30, 2013, Home Federal had tangible common equity of $168.1 million.

Terry E. Zink, Cascade Bancorp President & CEO, commented "We are truly pleased to join forces with Home Federal and to provide an opportunity of unique and compelling value to both organizations. The combination of our two outstanding franchises will result in a strong balance sheet and capital base, attractive margins and good earnings potential. For our customers, we believe the banks are culturally compatible and the combined institution will deliver an expanded product offering and stronger lending capacity. For shareholders, we believe the increased scale of the combined company will position our bank to grow organically while also providing additional strength to pursue future acquisition opportunities. Finally, for our communities, we believe our combined organization will provide increased opportunity to deliver the advantages of community banking and to contribute to regional economic vitality."

On a pro-forma basis, Bank of the Cascades would be the #4 largest NW community bank(1) after completing the merger. In addition, the combination represents an opportunity for Cascade to enter the attractive Eugene, Oregon market to expand its footprint and services in its home state of Oregon.

Len E. Williams, Home Federal President and CEO, commented, "We are very excited about the Transaction. Home Federal and Cascade have similar cultures, complementary geographies, and service strengths that make this Transaction a natural fit. Cascade shares our commitment to customers and community, and this Transaction is a terrific result for our shareholders. We see great opportunity in combining to create a bank with enormous potential for future success."

Cascade's management believes this Transaction represents an opportunity to realize significant cost savings and, in doing so, allows Cascade to pursue efficiencies in infrastructure. The annualized combined synergies are estimated at 24% of the combined core non-interest expense. Deposit cost reductions and scale efficiencies are currently expected to create opportunity for the Transaction to result in favorable revenue synergies.

The Transaction is intended to qualify as a tax-free reorganization for U.S. federal income tax purposes.

Cascade was advised in this Transaction by Macquarie Capital, as financial advisor, and Hunton & Williams LLP, as legal counsel. Home Federal was advised by Keefe, Bruyette & Woods, as financial advisor, and Vorys, Sater, Seymour and Pease LLP, as legal counsel.

Conference Call
A conference call to discuss the Transaction will be hosted by Cascade Bancorp on October 24, 2013 at 10am Pacific Time. The call may be accessed by dialing [phone] and the conference ID is 491-175-152. A slide presentation to accompany management's commentary may be accessed from Cascade's October 24, 2013 Form 8-K filing with the Securities and Exchange Commission or at www.botc.com.

About Cascade Bancorp
Cascade Bancorp (NASDAQ: CACB), headquartered in Bend, Oregon, and its wholly owned subsidiary, Bank of the Cascades, operate in the Oregon and Idaho markets. Founded in 1977, Bank of the Cascades offers full-service community banking through 32 branches in Central, Southern and Northwest Oregon, as well as in the greater Boise/Treasure Valley, Idaho area. 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.

About Home Federal Bancorp
Home Federal Bancorp (NASDAQ: HOME) is headquartered in Nampa, Idaho and is the bank holding company for Home Federal Bank, an Idaho state chartered community bank organized in 1920. Today, with $1 billion in assets, the Home Federal serves Southwestern Idaho, Central and Western Oregon through 24 full service branches and three commercial loan production offices.

http://www.prnewswire.com/news-releases/cascade-bancorp-and-home-federal-bancorp-agree-to-join-forces-to-create-premier-northwest-community-bank-229005451.html

[Enterprising Investor]

Bank Of The Cascades Second Quarter 2013 Results With Continued Earnings Resulting From A Non-Recurring Tax Benefit Arising From Recognition Of Deferred Tax Asset (8/09/13)

BEND, Ore., Aug. 9, 2013 /PRNewswire/ -- Cascade Bancorp (NASDAQ: CACB) ("Company") the holding company for Bank of the Cascades ("Bank"), announced 2013 second quarter results showing continued growth. Net income and shareholder equity was significantly and positively affected by the non-recurring release of our deferred tax asset ("DTA") valuation allowance. The release of the DTA allowance is recorded as a non-recurring $51.7 million benefit to income taxes in the Company's income statement. The recognition of DTA indicates that it is more likely than not that future taxable income will be sufficient to realize the benefit of the Company's tax profile over time. Also during the second quarter of 2013 the Company recorded non-recurring charges which we anticipate will position the Company for improved profitability going forward. The largest of these charges was a $3.8 million prepayment penalty to extinguish high rate FHLB advances. This payoff is expected to reduce Company borrowing costs in the future by approximately $500 thousand per quarter.

With the release of DTA at June 30, 2013, stockholders' equity increased to $187.9 million or $3.95 per share as compared to $140.8 million or $2.97 per share at December 31, 2012 when net DTA was nil.

The full details of the Company's second quarter 2013 results were filed with the SEC in the Company's quarterly report on Form 10-Q on August 9, 2013.

Financial Highlights of the Second Quarter and period ended June 30, 2013

•Net Income for the Second Quarter of 2013: After recognizing the non-reoccurring DTA, partially offset by the $3.8 million prepayment penalty to extinguish high rate FHLB advances, the Bank reported second quarter 2013 net income of $46.4 million.

•Earnings per Share: Diluted earnings per share for the six months ended June 30, 2013, which were largely influenced by recognition of the non-recurring DTA, were $1.02 per common share compared to $0.06 per share for the six months ended June 30, 2012.

•Stockholder Equity/Book Value Per Share: Stockholder equity increased to $187.9 million or $3.95 per share at June 30, 2013 as compared to $140.8 million or $2.97 per share at December 31, 2012 due to DTA recognition.

•Loans: Gross loans up $54.4 million or 6.34% compared to December 31, 2012.

•Deposits: Total deposits up $28.0 million or 2.60% compared to December 31, 2012.

•Credit Quality: Reserve for loan losses at June 30, 2013 was $22.7 million or 2.49% of loans compared to $27.3 million or 3.17% of loans at December 31, 2012.

•Credit Quality: Non-performing assets were 0.84% of total assets at June 30, 2013 compared to 1.94% at December 31, 2012.

•Credit Quality: Substandard loans were reduced by 54.06% to $58.2 million at June 30, 2013 as compared to December 31, 2012. Net charge-offs for the quarter were $2.9 million mainly related to resolution of substandard loans.

•Net Interest Margin ("NIM"): NIM was 3.75% at June 30, 2013 compared to 4.11% at December 31, 2012.

"Recognition of the deferred tax asset is a regular occurrence at
banks that have rebounded from periods of operating losses. We believe the DTA was already largely built into Cascade's current stock price," commented Terry Zink, President and Chief Executive Officer. "However with the DTA recognition it reinforces the strength of our capital and our confidence in sustainable profitability into the future. In doing so we believe this action underscores that Cascade has fully returned to its standing as a premier banking franchise in the Northwest."

Zink continued, "Most importantly for our customers, this means Cascade stands strong in providing business and consumer credit as well as mortgage loans and advanced technology to make community banking convenient. We are committed to growing the health and prosperity of our local economies by partnering with customers and neighbors who chose the advantages of investing in their communities by banking local."

Total loans outstanding increased to $928.3 million at June 30, 2013, a year to date increase of $69.6 million. The growth was attributable to local lending including owner-occupied commercial real estate, small business loans and lines, consumer lending, including residential mortgages and increased shared national credits in the commercial and industrial portfolio.

Loan quality continued to improve with remediation of special mention and substandard loans. These adversely risk rated loans totaled $107.1 million at June 30, 2013 as compared to $175.6 million at December 31, 2012. Remediation was accomplished through payoffs/pay downs, note sales and/or charge offs related to the restructure of adversely risk rated loans as well as credit upgrades owing to improved obligor cash flows. Also, non-performing assets as of June 30, 2013 improved to 0.84% of total assets as compared to 1.94% at December 31, 2012. During the second quarter of 2013, management made a provision for loan losses of $1.0 million partially offsetting $2.9 million in net charge offs, a portion of which relates to the remediation of legacy substandard loans.

Deposit balances increased to $1.1 billion at June 30, 2013, a year-to-date increase of $28.0 million as the Bank worked with existing customer relationships to expand relationships while also earning the business of new customers choosing Bank of the Cascades.

Net interest income was $11.5 million for the second quarter of 2013, down $1.0 million compared to the second quarter of 2012 and down $2.5 million year to date June 30, 2013 as compared to the year ago period. These declines were mainly due to reductions in yields on earnings assets as a result of the historically low interest rate market environment. Interest expense for the second quarter of 2013 decreased $0.4 million compared to the second quarter of 2012 and $0.9 million for the six months ended June 30, 2013 compared to the year ago period. This decrease in interest expense was due to the decreased rates on deposits in the low market rate environment. During the second quarter of 2013, the Company prepaid $60.0 million of FHLB advances bearing a weighted average rate of 3.17% which is intended to reduce future interest expense by approximately $0.5 million per quarter.

Non-interest income in the second quarter of 2013 was comparable to the second quarter of 2012, while non-interest expense in the second quarter of 2013 was $5.1 million higher than the second quarter of 2012 primarily due to the $3.8 million prepayment penalty of FHLB advances and the $1.3 million recorded for one-time human resource related items including incentive and severance obligations and $0.4 million associated with branch consolidation costs.

As the Bank moves into the second half of the year, it is investing in enhancing the convenience to customers with new online banking and bill pay services. The new platforms pave the way for mobile banking and mobile deposit services later in the year. According to Zink, "We are committed to being an attractive alternative to big bank competitors and offering customer access and conveniences that deliver the advantages of local banking anytime and anywhere." Additionally, the Bank continues to expand its offering of mortgage services and its team of experienced mortgage lenders to help customers realize home ownership opportunities.

On July 9, 2013 Bank of the Cascades announced its intention to purchase the Klamath Falls branch of AmericanWest Bank and the customer relationships of the AmericanWest Bank (known locally as Premier West) branches in Bend and Redmond, Oregon. According to Zink, "We look forward to welcoming new customers to our bank and expanding our franchise to serve customers in the Klamath Basin. We are especially pleased that we are able to provide continuing career opportunities for the employees of the branches we are purchasing, and provide them with the benefits of continued employment."

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 30 branches in Central, Southern and Northwest Oregon, as well as in the greater Boise/Treasure Valley, Idaho area. 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 www.botc.com.

http://www.prnewswire.com/news-releases/bank-of-the-cascades-second-quarter-2013-results-with-continued-earnings-resulting-from-a-non-recurring-tax-benefit-arising-from-recognition-of-deferred-tax-asset-219042751.html

[Enterprising Investor]

Bank of the Cascades to Expand in Klamath Falls, Bend and Redmond, Oregon (7/08/13)

BEND, Ore., July 8, 2013 /PRNewswire/ -- Cascade Bancorp (NASDAQ: CACB) ("Company") the holding company for Bank of the Cascades ("Bank"), today announced the execution of a purchase and assumption agreement where, subject to regulatory approval the Bank will purchase the Klamath Falls branch of AmericanWest Bankand will assume the customer relationships, including deposits and selected loans, of AmericanWest Bank's Bend and Redmond, Oregon branch offices. The transaction is expected to close in the fourth quarter of 2013. Each of the three branches were PremierWest Bank branches prior to acquisition by AmericanWest Bank earlier this year.

"We are very pleased to welcome these new customers to Bank of the Cascades and, in conjunction with AmericanWest, to provide them uninterrupted banking service," said Terry E. Zink, CEO of Cascade Bancorp. "With a 37 year history of investing in our communities, we share a common commitment to customer service with AmericanWest Bank and look forward to serving our new customers with individual attention and an extensive choice of personal and business banking services to meet their financial needs. Our commitment is to deliver the best in banking and provide customers the expertise and advantages of local banking with the value and convenience of anytime, anywhere availability."

Upon receipt of all necessary regulatory approval, the Klamath Falls branch of AmericanWest Bank will become a Bank of the Cascades branch. According to Zink, "We are proud to have the opportunity to serve these new customers as the only Oregon based bank in Klamath Falls and believe in the advantages of banking local and using local deposits to fund local loans in support of the area's economic strength and stability." In addition the customer relationships at the Bend branch of AmericanWest Bank will be transferred to the Bend Forum Branch of Bank of the Cascades at 2630 NE Hwy. 20, located less than a half mile away in the Forum Shopping Center. The branch offers full branch and drive-up banking services, Saturday banking hours well as night depository and drive-up ATMs for deposit, balance, transfer and cash withdrawal needs. Further, the customer relationships at the Redmond branch of AmericanWest Bank will be transferred to the Redmond branch of Bank of the Cascades at 154 SW Sixth Street. The Redmond branch also offers full branch, drive up banking and ATM service. No matter where their accounts are located, new customers will be able to utilize any Bank of the Cascades location throughout Central Oregon, Southern Oregon, Salem/Keizer, Portland and the Boise/Treasure Valley.

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 28 branches in Central, Southern and Northwest Oregon, as well as in the greater Boise/Treasure Valley, Idaho area. 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 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 release, 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, 2012, as well as the following factors: 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, Southern and Northwest Oregon, as well as 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 (including without limitation, the Dodd-Frank Wall Street Reform and Consumer Protection Act) 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

http://www.prnewswire.com/news-releases/bank-of-the-cascades-to-expand-in-klamath-falls-bend-and-redmond-oregon-214686681.html

[WildcatDriller]

Eco, make this baby wink!

[Enterprising Investor]

Bank of the Cascades First Quarter 2013 Results (5/13/13)

BEND, Ore., May 13, 2013 /PRNewswire/ -- Cascade Bancorp (NASDAQ: CACB) ("Company") the holding company for Bank of the Cascades ("Bank"), today announced net income of $1.7 million or $0.04 per share for the quarter ended March 31, 2013. The full details of the Company's first quarter 2013 results were filed with the SEC in the Company's quarterly report on Form 10-Q on May 13, 2013.

Financial Highlights and Summary of the First Quarter of 2013 (period ended March 31, 2013)

•Net Income: $1.7 million or $0.04 per share compared to $1.1 million and $0.02 per share for the year ago quarter.

•Loans: Gross loans up $19.0 million or 8.75% (annualized) compared to December 31, 2012.

•Deposits: Total deposits up $28.0 million or 11.06% (annualized) compared to December 31, 2012.

•Credit Quality: Remediated $57.2 million of loans classified as special mention or substandard during the first quarter of 2013, representing 6.52% of total loans.

•Credit Quality: Reserve for loan losses at $24.5 million or 2.80% of loans. No loan loss provision was made in the first quarter of 2013.

•Credit Quality: Net charge-offs for the quarter were $2.7 million, or 1.25% of loans (annualized) mainly related to resolution of special mention and substandard loans.

•Credit Quality: Non-performing assets were 1.65% of total assets at March 31, 2013 compared to 2.03% at March 31, 2012.

•Net Interest Margin ("NIM"): NIM was 3.92% at March 31, 2013 compared to 4.31% at March 31, 2012.

"We are pleased that first quarter 2013 continues a trend of consecutive quarterly profitability for the Company. When we are successful, our communities are successful," commented Terry Zink, President and Chief Executive Officer. He continued, "As a catalyst for economic growth, our priority is to deliver business and consumer credit, including mortgage loans to support purchase and refinance needs. We are encouraged by signs of improvement in our local economies and we will continue to seek out opportunities to assist our customers and neighbors." Zink continued, "Our recent progress is underscored by the removal of the Regulatory Order on March 7, 2013. Our management team continues to focus on actions to build sustainable asset quality and quality core earnings. As we build for our future, we are committed to delivering services of value and convenience to our customers, while also reinforcing the choice to bank local in each of our communities."

At March 31, 2013, total assets were $1.3 billion materially unchanged from December 31, 2012. Total net loans increased $21.7 million to $850.8 million at March 31, 2013 compared to $829.1 million at December 31, 2012. Construction loans outstanding at March 31, 2013 were down from December 31, 2012, while commercial real estate and residential real estate loan balances were higher over the same period. Cash and cash equivalents increased $31.7 million from December 31, 2012 to March 31, 2013, a result of a $28.0 million increase in deposits over the same period. The investment portfolio declined by $24.9 million from December 31, 2012 to March 31, 2013 due to paydowns and maturities of securities. OREO balances at March 31, 2013 were $5.7 million compared to $6.6 million at December 31, 2012.

Loan portfolio quality continued to improve during the first quarter of 2013 with a $57.2 million reduction in loans classified as special mention or substandard as compared to December 31, 2012. The improvement was achieved through a combination of payoffs, paydowns, note sales and/or restructuring of adversely risk rated legacy loans. This improvement in loan portfolio quality underpins the key priorities of the Bank which include revitalizing quality loan and deposit growth as well as reducing the legacy special mention and substandard assets in the Bank's portfolio. Management believes the reserve for loan losses of $24.5 million at March 31, 2013 is adequate to support achievement of this priority.

Total deposits increased $28.0 million from December 31, 2012 to March 31, 2013. Core checking, savings and money market deposits increased $25.3 million while time deposits increased slightly.

http://www.prnewswire.com/news-releases/bank-of-the-cascades-first-quarter-2013-results-207283361.html

[Pepperoni]

Since they announced a return to profitability, their stock has gone down. Anyone care to guess why?

[SCREAMING EAGLE]

Throw some more at it Eco! I like Riverview as well.

[SCREAMING EAGLE]

This bank should continue to recover nicely. It now has strong leadership at the top. The real estate market around Bend was crushed and is slowly coming back.