Bank of the Cascades Announces Return To Profitability In 2012

        Bank of the Cascades Announces Return To Profitability In 2012

PR Newswire

BEND, Ore., March 25, 2013

BEND, Ore., March 25, 2013 /PRNewswire/ -- Cascade Bancorp (NASDAQ: CACB)
("Company") the holding company for Bank of the Cascades ("Bank"), today
announced net income of $1.3 million or $0.03 per share for the quarter ended
December 31, 2012 and net income of $6.0 million or $0.13 per share for the
full year 2012. The full details of the Company's 2012 results were filed in
the Company's annual report on Form 10-K on March 25, 2013.

"We are pleased to announce that 2012 was a year of consecutive quarterly
profitability, as well as full year profitability. 2012 was a year of
transition and achievement of priorities as our bankers focused efforts on
delivering consumer, mortgage, and business loan and deposits services. We
also focused on continuing to improve our asset quality. Our progress was
underscored with the removal of the Regulatory Order on March 7, 2013," said
Terry Zink, President and Chief Executive Officer. Zink continued, "As a
Northwest community bank with over $1 billion in assets, we are proud of our
long-standing history of quality service and commitment to our communities. We
believe that our accomplishments in 2012 laid the foundation for continued
growth, as we look forward to serving our communities and delivering the
advantages of local banking in 2013."

2012 Full Year Results:

In 2012 the Company recorded net income of $6.0 million or $0.13 per share.
This compared to a net loss of ($47.3) million or ($1.08) per share for 2011.
The return to profitability in 2012 is mainly attributable to significantly
reduced credit costs, including a substantially lower loan loss provision and
reduced cost incurred in disposition of OREO for 2012 as compared to 2011.
The Company recorded a $1.1 million loan loss provision in 2012, significantly
less than the $75.0 million loan loss provision made in 2011. 2012 OREO
related expenses declined by $16.2 million compared to the prior year. 2012
also benefited from revitalized residential mortgage originations which
contributed to an increase in mortgage banking income $3.8 million above the
2011 level.

The 2011 $75.0 million loan loss provision referenced above was mainly
attributable to charge offs ensuing from its 2011 bulk sale of $110.0 million
of certain non-performing and substandard loans undertaken to improve the
asset quality of the bank. Elevated loan loss provision in 2011 was partially
offset by a $32.8 million gain on the extinguishment of Trust Preferred debt
in that year.

Full year 2012 net interest income declined $5.5 million or 10.0% from 2011
mainly due to lower outstanding loan balances. The Company's net interest
margin ("NIM") increased to 4.11% for 2012 compared to 3.85% for 2011
primarily due to lower cost of funds associated with borrowings and time
deposits.

Non-interest expense decreased $27.4 million or 32.9% compared to 2011 and was
lower in virtually all categories in 2012. Much of the reduction was a result
of lower credit related costs that reflect the improving economy.

At December 31, 2012, total assets were $1.3 billion materially unchanged from
December 31, 2011. Total net loans declined $24.1 million to $829.1 million at
December 31, 2012 compared to $853.2 million at December 31, 2011. The lower
loan balance at December 31, 2012 was primarily a result of payoffs and
pay-downs of borrowers. A renewed focus on loan growth enabled the Bank to
increase its loan portfolio during the second half of 2012, and it anticipates
continued progress in 2013. The investment portfolio increased to $259.4
million at December 31, 2012 as compared to $212.0 million a year earlier as
the Company deployed excess liquidity into securities. OREO balances at
December 31, 2012 were $6.6 million compared to $21.3 million at December 31,
2011, a $14.7 million or 69.2% decline from December 31, 2011.

Total deposits decreased $10.6 million or 1.0% at December 31, 2012 as
compared to December 31, 2011. Core checking, savings and money market
deposits increased 2.2% from year ago levels, partially offsetting a $31.6
million decline in time deposits over the respective periods.

(In thousands, except per share data and ratios;                       %
unaudited)
Balance Sheet Data (at period end)               2012       2011       Change
  Investment securities                          $259,357   $211,994   22.3%
  Loans, gross                                   $856,318   $897,058   -4.5%
  Total assets                                   $1,301,417 $1,303,450 -0.2%
  Total deposits                                 $1,076,234 $1,086,827 -1.0%
   Non-interest bearing deposits               $410,258   $371,662   10.4%
  Total common shareholders' equity (book)       $140,775   $132,881   5.9%
Income Statement Data
  Interest income                                $54,879    $67,100    -18.2%
  Interest expense                               4,999      11,704     -57.3%
  Net interest income                            49,880     55,396     -10.0%
  Loan loss provision                            1,100      75,000     -98.5%
  Net interest income (loss) after loan loss     48,780     (19,604)   348.8%
  provision
  Noninterest income                             13,091     10,967     19.4%
  Noninterest expense                            55,841     83,199     -32.9%
  Income (loss) before income taxes              6,030      (91,836)   106.6%
  (Provision) credit for income taxes            (79)       11,721     -100.7%
  Income (loss) before extraordinary net gain    5,951      (80,115)   107.4%
  Extraordinary gain on extinguishment of junior
   subordinated debentures, net of tax         -          32,839     -100.0%
  Net income (loss)                              5,951      (47,276)   112.6%
Share Data
  Income (loss) before extraordinary net gain    $0.13      ($1.83)    107.1%
  Extraordinary net gain                         0.00       0.75       100.0%
  Net income (loss)                              $0.13      ($1.08)    112.0%
Key Ratios
  Return on average total shareholders' equity   4.34%      -25.65%    116.9%
  (book)
  Return on average total assets                 4.60%      -3.04%     251.3%
  Net interest spread                            3.85%      3.42%      12.6%
  Net interest margin                            4.11%      3.85%      6.8%
Credit Quality Ratios
  Reserve for credit losses to ending gross      3.23%      5.07%      -36.2%
  loans
  Non-performing assets to total assets          1.94%      2.33%      -16.6%
  Delinquent >30 days to total loans (excl.      1.80%      0.34%      436.2%
  NPAs)
  Net loan charge-offs (annualized)              2.07%      7.20%      -71.3%
Bank Capital Ratios
  Tier 1 capital leverage ratio                  10.42%     9.38%      11.1%
  Tier 1 risk-based capital ratio                14.09%     12.98%     8.6%
  Total risk-based capital ratio                 15.36%     14.27%     7.6%
Bancorp Capital Ratios
  Tier 1 capital leverage ratio                  10.44%     9.42%      10.8%
  Tier 1 risk-based capital ratio                14.12%     13.04%     8.3%
  Total risk-based capital ratio                 15.39%     14.34%     7.3%

Fourth Quarter ended December 31, 2012

Net income for the fourth quarter of 2012 was $1.3 million or $0.03 per share
compared to a loss of $25.9 million or ($0.55) per share during the quarter
ended December 31, 2011. The improvement was mainly attributable to
significantly reduced credit costs in the current period, including a lower
loan loss provision and reduced cost incurred in disposition of OREO. Net
interest income for the fourth quarter of 2012 was $0.9 million or 7.2% below
the year ago quarter due to lower loan yields and balances in the current
quarter. Total deposits were $1.08 billion at December 31, 2012, materially
unchanged from the year ago period.

At December 31, 2012 non-performing assets were 1.94% of assets compared to
2.32% in the year ago quarter. In working to improve the credit quality of its
portfolio, the Company continued to remediate classified and substandard
assets within its portfolio, including OREO. The reserve for loan losses
remains adequate at $27.3 million or 3.18% of gross loans as of December 31,
2012 compared to $43.9 million or 4.89% at December 31, 2011.

                                                                        %
(In thousands, except per share data and ratios;       Q4-12   Q4-11    Change
unaudited)
Income Statement Data
   Interest income                                     $13,023 $14,914  -12.7%
   Interest expense                                    1,068   2,038    -47.6%
   Net interest income                                 11,955  12,876   -7.2%
   Loan loss provision                                 -       14,700   100.0%
   Net interest income (loss) after loan loss          11,955  (1,824)  755.4%
   provision
   Noninterest income                                  3,451   2,665    29.5%
   Noninterest expense                                 14,069  26,629   -47.2%
   Income (loss) before income taxes                   1,337   (25,788) 105.2%
   (Provision) credit for income taxes                 (29)    (123)    76.4%
   Income (loss) before extraordinary net gain         1,308   (25,911) 105.0%
Share Data
   Net income (loss)                                   $0.03   ($0.55)  105.5%
Key Ratios
   Return on average total shareholders' equity (book) 3.71%   -64.59%  105.7%
   Return on average total assets                      0.40%   -7.44%   105.4%
   Net interest spread                                 3.65%   3.67%    -0.5%
   Net interest margin                                 3.88%   4.04%    -4.0%

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 31 branches in Central Oregon, Southern Oregon, Portland/Salem, and
Boise/Treasure Valley. The Bank has a business strategy that focuses on
delivering the best in community banking for the financial well-being of
customers and shareholders. It executes its strategy through the consistent
delivery of full relationship banking focused on attracting and retaining
value-driven customers. For further information, please visit our website at
www.botc.com.

FORWARD LOOKING STATEMENTS

This release contains forward-looking statements about Cascade Bancorp's plans
and anticipated results of operations and financial condition. These
statements include, but are not limited to, our plans, objectives,
expectations, and intentions and are not statements of historical fact. When
used in this report, the word "expects," "believes," "anticipates," "could,"
"may," "will," "should," "plan," "predicts," "projections," "continue" and
other similar expressions constitute forward-looking statements, as do any
other statements that expressly or implicitly predict future events, results
or performance, and such statements are made pursuant to the safe harbor
provisions of the Private Securities Litigation Reform Act of 1995. Certain
risks and uncertainties and Cascade Bancorp's success in managing such risks
and uncertainties could cause actual results to differ materially from those
projected, including among others, the risk factors described in our annual
report on Form 10-K filed with the Securities and Exchange Commission (the
"SEC") for the year ended December 31, 2011, as well as the following factors:
local and national economic conditions could be less favorable than expected
or could have a more direct and pronounced effect on us than expected and
adversely affect our results of operations and financial condition; the local
housing/real estate market could continue to decline for a longer period than
we anticipate; the risks presented by a continued economic recession, which
could continue to adversely affect credit quality, collateral values,
including real estate collateral and OREO properties, investment values,
liquidity and loan originations, reserves for loan losses and charge offs of
loans and loan portfolio delinquency rates and may be exacerbated by our
concentration of operations in the States of Oregon and Idaho generally, and
Central Oregon, Southern and Northwest Oregon, and the greater Boise/Treasure
Valley, Idaho area, specifically; interest rate changes could significantly
reduce net interest income and negatively affect funding sources; competition
among financial institutions could increase significantly; competition or
changes in interest rates could negatively affect net interest margin, as
could other factors listed from time to time in Cascade Bancorp's SEC reports;
the reputation of the financial services industry could further deteriorate,
which could adversely affect our ability to access markets for funding and to
acquire and retain customers; and existing regulatory requirements, changes in
regulatory requirements and legislation (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.

Information contained herein, other than information at December 31, 2011, and
for the twelve months then ended, is unaudited. All financial data should be
read in conjunction with the notes to the consolidated financial statements of
Cascade Bancorp and subsidiary as of and for the fiscal year ended December
31, 2011, as contained in the Company's Annual Report on Form 10-K for such
fiscal year.

SOURCE Cascade Bancorp

Website: http://www.botc.com
Contact: Terry E. Zink, President and Chief Executive Officer, Cascade
Bancorp, +1-541-617-3513; Gregory D. Newton, EVP and Chief Financial Officer,
Cascade Bancorp, +1-541-617-3526