Cascade Bancorp Reports Third Quarter 2013 Financial Results With Continued Revenue Increase

 Cascade Bancorp Reports Third Quarter 2013 Financial Results With Continued
                               Revenue Increase

PR Newswire

BEND, Ore., Nov. 12, 2013

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 September30, 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:

  othe combined bank will have significant scale and market share;
  ocreate a bank with over $2.0 billion in assets, making it the 4th largest
    community bank in the Pacific Northwest;^1
  odouble Cascade's market share in Boise/Treasure Valley;
  osolidify Cascade's #1 market share in Central Oregon;
  oexpands Cascade's footprint to Eugene, Oregon; and
  ounlocks 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 September30, 2013

  oQuarter-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.
  oStockholders 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.
  oLoans: Gross loans at September 30, 2013 are up $81.7 million or 9.52%
    compared to December 31, 2012.
  oDeposits: Total deposits at September 30, 2013 are up $119.4 million or
    11.09% compared to December 31, 2012.
  oCredit 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.
  oCredit Quality: Non-performing assets were 0.88% of total assets at
    September 30, 2013 compared to 1.94% at December 31, 2012.
  oCredit 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.
  oNet 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 September30, 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 September30, 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.

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 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. Such
forward-looking statements also include, but are not limited to, statements
about the benefits of the proposed merger involving Cascade and Home Federal,
including future financial and operating results, Cascade's or Home Federal's
plans, objectives, expectations and intentions, the expected timing of
completion of the merger and other statements that are not historical facts.
Important factors that could cause actual results to differ materially from
those indicated by such forward-looking statements include risks and
uncertainties relating to: (i) the ability to obtain the requisite Cascade and
Home Federal shareholder approvals; (ii) the risk that Cascade or Home Federal
may be unable to obtain governmental and regulatory approvals required for the
merger, or required governmental and regulatory approvals may delay the merger
or result in the imposition of conditions that could cause the parties to
abandon the merger; (iii) the risk that a condition to the closing of the
merger may not be satisfied; (iv) the timing to consummate the proposed
merger; (v) the risk that the businesses will not be integrated successfully;
(vi) the risk that the cost savings and any other synergies from the
transaction may not be fully realized or may take longer to realize than
expected; (vii) disruption from the transaction making it more difficult to
maintain relationships with customers, employees or vendors; (viii) the
diversion of management time on merger-related issues; (ix) general worldwide
economic conditions and related uncertainties; (x) liquidity risk affecting
Cascade's ability to meet its obligations when they come due; (xi) excessive
loan losses; (xii) the effect of changes in governmental regulations; and
(xiii) other factors we discuss or refer to in the "Risk Factors" section of
Cascade's most recent Annual Report on Form 10-K filed with Securities and
Exchange Commission (the "SEC") on March 29, 2013. These risks, as well as
other risks associated with the merger, will be more fully discussed in the
joint proxy statement/prospectus that will be included in the Registration
Statement on Form S-4 that will be filed with the SEC in connection with the
merger. Additional risks and uncertainties are identified and discussed in
Cascade's reports filed with the SEC and available at the SEC's website at
www.sec.gov. 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.

Participants in the Solicitation
Cascade, Home Federal and their respective directors and executive officers
may be soliciting proxies from Cascade and Home Federal shareholders in favor
of the proposed merger and related matters. Information regarding the persons
who may, under the rules of the SEC, be deemed participants in the
solicitation of Cascade and Home Federal shareholders in connection with the
proposed merger and a description of their direct and indirect interests, by
security holdings or otherwise will be set forth in the joint proxy
statement/prospectus when it is filed with the SEC. You can find information
about Cascade's directors and executive officers in Cascade's definitive proxy
statement filed with the SEC on March 27, 2013 for its 2013 Annual Meeting of
Shareholders. You can find information about Home Federal's directors and
executive officers in Home Federal's definitive proxy statement filed with the
SEC on April 19, 2013. Additional information about Cascade's directors and
executive officers and Home Federal's directors and executive officers can
also be found in the above-referenced Registration Statement on Form S-4 when
it becomes available. Investors should read the joint proxy
statement/prospectus carefully when it becomes available before making any
voting or investment decisions. You can obtain free copies of these documents
from Cascade and Home Federal using the contact information above.

Additional Information about the Proposed Merger and Where to Find It
This document does not constitute an offer to sell or the solicitation of an
offer to buy any securities, or a solicitation of any vote or approval, nor
shall there be any sale of securities in any jurisdiction in which such offer,
solicitation or sale would be unlawful prior to registration or qualification
under the securities laws of any such jurisdiction. In connection with the
proposed merger between Cascade and Home Federal, Cascade will file with the
SEC a Registration Statement on Form S-4, which will include a joint proxy
statement of Cascade and Home Federal that also constitutes a prospectus.
Cascade and Home Federal will deliver the joint proxy statement/prospectus to
their respective shareholders. Cascade and Home Federal urge investors and
shareholders to read the joint proxy statement/prospectus regarding the
proposed merger when it becomes available, as well as other documents filed
with the SEC because they will contain important information about the
proposed merger. You may obtain copies of all documents filed with the SEC
regarding this Transaction, free of charge, at the SEC's website
(www.sec.gov). You may also obtain these documents, free of charge, from: (i)
Cascade's website (www.botc.com) under the heading "About Us" and then under
the heading "Investor Relations" and then under the heading "Investor
Information" and then under the tab "SEC Filings;" (ii) Cascade upon written
request to Cascade Bancorp, Attn: Investor Relations, 1100 North West Wall
Street, P.O. Box 369, Bend, Oregon 97701; (iii) Home Federal's website
(www.myhomefed.com/ir) under the heading "Investor Relations" and then under
the heading "SEC Filings;" or (iv) Home Federal upon written request to Home
Federal Bancorp, Inc., Attn: Eric Nadeau, 500 12th Avenue South, Nampa, Idaho
83651.

Information contained herein, other than information at December 31, 2012, 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, 2012, 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
(541) 617-3527; or Gregory D. Newton, EVP and Chief Financial Officer, Cascade
Bancorp (541) 617-3526
 
Press spacebar to pause and continue. Press esc to stop.