Cascade Bancorp (Oregon) Reports Robust First Quarter Financial Results; 15th Consecutive Quarter With Return on Equity in Excess of 20%

Record First Quarter 2001 Results:

-- Net Income up 23.9% to $1.9 million

-- Diluted Earnings Per Share (EPS) Up 22.7 % to $.27

-- Return on Equity (ROE) 21.7% for the Quarter

-- Loans up $19.5 million or 21.8% (Annualized rate)

-- Deposits Up $35.4 million or 39.6% (Annualized rate)



Apr 10, 2001, 01:00 ET from Cascade Bancorp

    BEND, Ore., April 10 /PRNewswire/ -- The following release has been issued
 by Cascade Bancorp:
 
     Financial Performance:
     Cascade Bancorp (Nasdaq: CACB) (a Bend, Oregon Company, with principal
 subsidiary Bank of the Cascades) announced strong financial results for the
 first quarter of 2001, recording its 15th consecutive quarter with Return on
 Equity above 20%.  (The Company is in its sixth consecutive year with annual
 ROE above 20%).  For the first quarter 2001, Earnings Per Share and Net Income
 were both up in excess of 22% at $.27 and $1.9 million, respectively.
 Comparable year earlier results were $.22 and $1.5 million.  "We continue to
 benefit from our dominant market share fueled by the solid economy of Central
 Oregon," said Patricia L. Moss, President and CEO of Cascade Bancorp.  "While
 the country as a whole has started feeling the effects of its first economic
 slowdown in many years, we appreciate that our markets are maintaining stable
 growth."  Return on assets for the quarter remained well above peer banks at a
 strong 1.94%.
 
     Loan and Deposit Growth:
     The Company's loan portfolio expanded by $19 million during the quarter, a
 21.8% annualized pace, bringing total loans to $377 million.  Meanwhile,
 deposits ended the quarter at $394 million, an increase of $35.4 million
 compared to year-end 2000 for an annualized growth rate above 39%.  "The
 Bank's deposits normally soften in the winter months of the year, reflecting
 the seasonal pattern of our tourism and construction industries," said
 Michael J. Delvin, Chief Operating Officer.  "However, our rapid growth of the
 last quarter may well have been strengthened by funds leaving the turmoil of
 the stock markets for the safe haven of bank deposits."
 
     Net Interest Margin:
     Excluding the one-time effect of an interest reversal on a single
 non-performing credit (discussed below under "Credit quality"), the Net
 Interest Margin remained well above peer bank levels at 6.91%, compared to
 7.16% for the prior year comparable quarter.  "The Federal Reserve has lowered
 rates at a dramatic pace in just the past three months," said
 Gregory D. Newton, Chief Financial Officer.  "Under the circumstances, we are
 pleased that the normalized first quarter margin has remained strong despite
 this historically rapid fall in rates."  The unadjusted net interest margin
 was 6.79%, taking into effect the above-mentioned reversal of approximately
 $109,000 in previously accrued interest (approximately $.01 earnings per
 share).  Management expects the margin to remain in the upper 6% range for the
 year, absent unforeseen interest rate or economic changes.
 
     Credit Quality:
     Underlying loan credit quality trends remained solid, consistent with the
 continued economic vitality in the Company's markets.  Total delinquent loans
 (> 30 days) improved to just .15% of total loans, as compared to .49% a year
 earlier and .56% for the immediately preceding quarter.  Meanwhile the Reserve
 for Loan Losses was maintained at 1.37% of total loans, at the upper end of
 the 1.28% to 1.40% range recorded in the past year.  Non-performing assets
 increased to .73% of total assets due to a single term commercial credit.  The
 carrying value of this credit is adequately secured (principally by real
 estate).  Excluding this single credit, non-performing assets were only
 .13% of total assets compared to .16% at year-end 2000.
 
     Keizer Branch Profitable After Only 3 Quarters of Operation:
     The Company reported that its second Salem location in nearby Keizer,
 Oregon, generated a net profit for the first quarter of 2001, just 3 quarters
 after opening in June of 2000.  The branch had grown to over $10 million in
 deposits and $7 million in loans at March 31, 2001.  "Our commitment to
 'Hometown Oregon' service has opened the door to many new opportunities to
 grow our customer base in the past year," said Keizer Manager Velma Tepper.
 "With another location planned for South Salem in the third quarter of 2001,
 our branch network will become increasingly convenient for prospective clients
 in many Salem neighborhoods."
 
     Non-Interest Income and Expense:
     In the first quarter of 2001, overall non-interest income grew
 13.9% compared to the year earlier quarter.  Declining interest rates
 benefited the Company's mortgage banking activity, with net mortgage revenues
 increasing approximately $97,000 or 35% above year ago levels.  "We are
 pleased that our operating efficiency has allowed us to continue to meet
 customer expectations for timely closings, despite high volumes," said
 Frank Wheeler, VP of mortgage banking.  Non-interest expense was up
 6.8% compared to a year ago, and 2.1% higher than the preceding quarter, a
 reflection of increased human resource costs.
 
     Business Strategy:
     Cascade Bancorp and its principal subsidiary, Bank of the Cascades, have a
 business strategy that focuses on delivering the "best in community banking,"
 with personal-touch service, competitive financial products, local expertise
 and advanced technology applied for the convenience of customers.  Founded in
 1976, Bank of the Cascades is the market share leader in one of the fastest
 growing regions in the Northwest, offering full-service community banking
 including trust and investment services.  The Bank has a total of 11 branches,
 with nine throughout Central Oregon, and two in the Salem/Keizer area.  For
 further information on the Company or to access Internet banking, please visit
 our award-winning web site at http://www.botc.com .
 
     Forward-Looking Statements
     This release may contain forward-looking statements that are subject to
 risks and uncertainties.  Such risks and uncertainties may include but are not
 necessarily limited to fluctuations in interest rates, inflation, government
 regulations and general economic conditions, and competition within the
 business areas in which the Company is conducting its operations.  For a
 discussion of factors, which could cause results to differ, please see the
 Company's reports on Forms 10-K and 10-Q as filed with the Securities and
 Exchange Commission and the Company's press releases.  When used in the this
 release, the words or phrases such as "will likely result in," "are expected
 to," "will continue," "is anticipated," "estimate," "projected," or similar
 expressions, are intended to identify "forward-looking statements" within the
 meaning of the Private Securities Litigation Reform Act of 1995 ("PSLRA").
 Readers should not place undue reliance on the forward-looking statements,
 which reflect management's view only as of the date hereof.  The Company
 undertakes no obligation to publicly revise these forward-looking statements
 to reflect subsequent events or circumstances.  This statement is included for
 the express purpose of protecting Cascade Bancorp and PSLRA's safe harbor
 provisions.
 
     CASCADE BANCORP
     Selected Consolidated Financial Highlights
     (In thousands, except per share data and ratios; unaudited)
 
                                             1st Qtr      1st Qtr         %
                                                2001         2000      Change
     Income Statement Data
         Interest income                      $9,327       $7,963       17.1%
         Interest expense                     $2,752       $2,150       28.0%
         Net interest income                  $6,575       $5,813       13.1%
         Loan loss provision                    $715         $611       17.0%
         Net interest income after
          loan loss provision                 $5,860       $5,202       12.6%
         Noninterest income                   $1,524       $1,338       13.9%
         Noninterest expense                  $4,300       $4,026        6.8%
         Income before income taxes           $3,084       $2,514       22.7%
         Provision for income taxes           $1,203         $996       20.8%
         Net income                           $1,881       $1,518       23.9%
     Share Data
         Basic earnings per common share       $0.27        $0.22       23.6%
         Diluted earnings per common share     $0.27        $0.22       24.2%
         Book value per common share           $5.31        $4.40       20.7%
         Basic average shares outstanding      6,886        6,869        0.2%
         Fully Diluted average shares
          outstanding                          6,962        6,977       -0.2%
     Balance Sheet Data (at period end)
         Investment securities               $25,796      $30,945      -16.6%
         Loans, gross                       $377,038     $303,148       24.4%
         Total assets                       $454,111     $377,619       20.3%
         Total deposits                     $393,626     $332,341       18.4%
           Non-interest bearing deposits    $148,569     $123,284       20.5%
           Core deposits (A)                $321,063     $273,122       17.6%
         Total shareholders' equity          $36,584      $30,229       21.0%
     Selected Ratios
         Return on average total
          shareholders' equity                21.66%       20.51%        5.6%
         Return on average total assets        1.94%        1.68%       15.5%
         Average shareholders' equity
          to average assets                    8.97%        8.17%        9.8%
         Net interest spread (B)         5.50%/5.39%        5.89% -6.6%/-8.5%
         Net interest margin (B)         6.91%/6.79%        7.16% -3.5%/-5.2%
         Efficiency ratio (C)                 53.09%       56.30%       -5.7%
     Asset Quality Ratios
         Loan loss reserve                    $5,181       $3,892       33.1%
         Reserve to ending total loans.        1.37%        1.28%        7.0%
         Non-performing assets (D)            $3,313         $332      897.9%
         Non-performing assets
          to total assets ...                  0.73%        0.09%      711.1%
         Delinquent >30 days to total
          loans (E)                            0.15%        0.49%      -69.4%
         Net loan charge-off's                  $554         $248      123.4%
         Net loan charge-off's
          to average loans                     0.15%        0.08%       87.5%
 
     Notes:
     (A) Core deposits include checking, money market and savings accounts.
     (B)  5.51% and 6.92% adjusted for a one time interest reversal on a single
          non-performing loan.
     (C)  Efficiency ratio is noninterest expense divided by (net interest
          income + noninterest income).
     (D) Nonperforming assets consist of loans contractually past due
          > 90 days, nonaccrual loans and OREO.
     (E)  Excludes non-performing loans.
 
 

SOURCE Cascade Bancorp
    BEND, Ore., April 10 /PRNewswire/ -- The following release has been issued
 by Cascade Bancorp:
 
     Financial Performance:
     Cascade Bancorp (Nasdaq: CACB) (a Bend, Oregon Company, with principal
 subsidiary Bank of the Cascades) announced strong financial results for the
 first quarter of 2001, recording its 15th consecutive quarter with Return on
 Equity above 20%.  (The Company is in its sixth consecutive year with annual
 ROE above 20%).  For the first quarter 2001, Earnings Per Share and Net Income
 were both up in excess of 22% at $.27 and $1.9 million, respectively.
 Comparable year earlier results were $.22 and $1.5 million.  "We continue to
 benefit from our dominant market share fueled by the solid economy of Central
 Oregon," said Patricia L. Moss, President and CEO of Cascade Bancorp.  "While
 the country as a whole has started feeling the effects of its first economic
 slowdown in many years, we appreciate that our markets are maintaining stable
 growth."  Return on assets for the quarter remained well above peer banks at a
 strong 1.94%.
 
     Loan and Deposit Growth:
     The Company's loan portfolio expanded by $19 million during the quarter, a
 21.8% annualized pace, bringing total loans to $377 million.  Meanwhile,
 deposits ended the quarter at $394 million, an increase of $35.4 million
 compared to year-end 2000 for an annualized growth rate above 39%.  "The
 Bank's deposits normally soften in the winter months of the year, reflecting
 the seasonal pattern of our tourism and construction industries," said
 Michael J. Delvin, Chief Operating Officer.  "However, our rapid growth of the
 last quarter may well have been strengthened by funds leaving the turmoil of
 the stock markets for the safe haven of bank deposits."
 
     Net Interest Margin:
     Excluding the one-time effect of an interest reversal on a single
 non-performing credit (discussed below under "Credit quality"), the Net
 Interest Margin remained well above peer bank levels at 6.91%, compared to
 7.16% for the prior year comparable quarter.  "The Federal Reserve has lowered
 rates at a dramatic pace in just the past three months," said
 Gregory D. Newton, Chief Financial Officer.  "Under the circumstances, we are
 pleased that the normalized first quarter margin has remained strong despite
 this historically rapid fall in rates."  The unadjusted net interest margin
 was 6.79%, taking into effect the above-mentioned reversal of approximately
 $109,000 in previously accrued interest (approximately $.01 earnings per
 share).  Management expects the margin to remain in the upper 6% range for the
 year, absent unforeseen interest rate or economic changes.
 
     Credit Quality:
     Underlying loan credit quality trends remained solid, consistent with the
 continued economic vitality in the Company's markets.  Total delinquent loans
 (> 30 days) improved to just .15% of total loans, as compared to .49% a year
 earlier and .56% for the immediately preceding quarter.  Meanwhile the Reserve
 for Loan Losses was maintained at 1.37% of total loans, at the upper end of
 the 1.28% to 1.40% range recorded in the past year.  Non-performing assets
 increased to .73% of total assets due to a single term commercial credit.  The
 carrying value of this credit is adequately secured (principally by real
 estate).  Excluding this single credit, non-performing assets were only
 .13% of total assets compared to .16% at year-end 2000.
 
     Keizer Branch Profitable After Only 3 Quarters of Operation:
     The Company reported that its second Salem location in nearby Keizer,
 Oregon, generated a net profit for the first quarter of 2001, just 3 quarters
 after opening in June of 2000.  The branch had grown to over $10 million in
 deposits and $7 million in loans at March 31, 2001.  "Our commitment to
 'Hometown Oregon' service has opened the door to many new opportunities to
 grow our customer base in the past year," said Keizer Manager Velma Tepper.
 "With another location planned for South Salem in the third quarter of 2001,
 our branch network will become increasingly convenient for prospective clients
 in many Salem neighborhoods."
 
     Non-Interest Income and Expense:
     In the first quarter of 2001, overall non-interest income grew
 13.9% compared to the year earlier quarter.  Declining interest rates
 benefited the Company's mortgage banking activity, with net mortgage revenues
 increasing approximately $97,000 or 35% above year ago levels.  "We are
 pleased that our operating efficiency has allowed us to continue to meet
 customer expectations for timely closings, despite high volumes," said
 Frank Wheeler, VP of mortgage banking.  Non-interest expense was up
 6.8% compared to a year ago, and 2.1% higher than the preceding quarter, a
 reflection of increased human resource costs.
 
     Business Strategy:
     Cascade Bancorp and its principal subsidiary, Bank of the Cascades, have a
 business strategy that focuses on delivering the "best in community banking,"
 with personal-touch service, competitive financial products, local expertise
 and advanced technology applied for the convenience of customers.  Founded in
 1976, Bank of the Cascades is the market share leader in one of the fastest
 growing regions in the Northwest, offering full-service community banking
 including trust and investment services.  The Bank has a total of 11 branches,
 with nine throughout Central Oregon, and two in the Salem/Keizer area.  For
 further information on the Company or to access Internet banking, please visit
 our award-winning web site at http://www.botc.com .
 
     Forward-Looking Statements
     This release may contain forward-looking statements that are subject to
 risks and uncertainties.  Such risks and uncertainties may include but are not
 necessarily limited to fluctuations in interest rates, inflation, government
 regulations and general economic conditions, and competition within the
 business areas in which the Company is conducting its operations.  For a
 discussion of factors, which could cause results to differ, please see the
 Company's reports on Forms 10-K and 10-Q as filed with the Securities and
 Exchange Commission and the Company's press releases.  When used in the this
 release, the words or phrases such as "will likely result in," "are expected
 to," "will continue," "is anticipated," "estimate," "projected," or similar
 expressions, are intended to identify "forward-looking statements" within the
 meaning of the Private Securities Litigation Reform Act of 1995 ("PSLRA").
 Readers should not place undue reliance on the forward-looking statements,
 which reflect management's view only as of the date hereof.  The Company
 undertakes no obligation to publicly revise these forward-looking statements
 to reflect subsequent events or circumstances.  This statement is included for
 the express purpose of protecting Cascade Bancorp and PSLRA's safe harbor
 provisions.
 
     CASCADE BANCORP
     Selected Consolidated Financial Highlights
     (In thousands, except per share data and ratios; unaudited)
 
                                             1st Qtr      1st Qtr         %
                                                2001         2000      Change
     Income Statement Data
         Interest income                      $9,327       $7,963       17.1%
         Interest expense                     $2,752       $2,150       28.0%
         Net interest income                  $6,575       $5,813       13.1%
         Loan loss provision                    $715         $611       17.0%
         Net interest income after
          loan loss provision                 $5,860       $5,202       12.6%
         Noninterest income                   $1,524       $1,338       13.9%
         Noninterest expense                  $4,300       $4,026        6.8%
         Income before income taxes           $3,084       $2,514       22.7%
         Provision for income taxes           $1,203         $996       20.8%
         Net income                           $1,881       $1,518       23.9%
     Share Data
         Basic earnings per common share       $0.27        $0.22       23.6%
         Diluted earnings per common share     $0.27        $0.22       24.2%
         Book value per common share           $5.31        $4.40       20.7%
         Basic average shares outstanding      6,886        6,869        0.2%
         Fully Diluted average shares
          outstanding                          6,962        6,977       -0.2%
     Balance Sheet Data (at period end)
         Investment securities               $25,796      $30,945      -16.6%
         Loans, gross                       $377,038     $303,148       24.4%
         Total assets                       $454,111     $377,619       20.3%
         Total deposits                     $393,626     $332,341       18.4%
           Non-interest bearing deposits    $148,569     $123,284       20.5%
           Core deposits (A)                $321,063     $273,122       17.6%
         Total shareholders' equity          $36,584      $30,229       21.0%
     Selected Ratios
         Return on average total
          shareholders' equity                21.66%       20.51%        5.6%
         Return on average total assets        1.94%        1.68%       15.5%
         Average shareholders' equity
          to average assets                    8.97%        8.17%        9.8%
         Net interest spread (B)         5.50%/5.39%        5.89% -6.6%/-8.5%
         Net interest margin (B)         6.91%/6.79%        7.16% -3.5%/-5.2%
         Efficiency ratio (C)                 53.09%       56.30%       -5.7%
     Asset Quality Ratios
         Loan loss reserve                    $5,181       $3,892       33.1%
         Reserve to ending total loans.        1.37%        1.28%        7.0%
         Non-performing assets (D)            $3,313         $332      897.9%
         Non-performing assets
          to total assets ...                  0.73%        0.09%      711.1%
         Delinquent >30 days to total
          loans (E)                            0.15%        0.49%      -69.4%
         Net loan charge-off's                  $554         $248      123.4%
         Net loan charge-off's
          to average loans                     0.15%        0.08%       87.5%
 
     Notes:
     (A) Core deposits include checking, money market and savings accounts.
     (B)  5.51% and 6.92% adjusted for a one time interest reversal on a single
          non-performing loan.
     (C)  Efficiency ratio is noninterest expense divided by (net interest
          income + noninterest income).
     (D) Nonperforming assets consist of loans contractually past due
          > 90 days, nonaccrual loans and OREO.
     (E)  Excludes non-performing loans.
 
 SOURCE  Cascade Bancorp